Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | Apr. 25, 2017 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | AFL | |
Entity Registrant Name | AFLAC INC | |
Entity Central Index Key | 4,977 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 396,846,578 |
Consolidated Statements of Earn
Consolidated Statements of Earnings - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Revenues: | ||
Net premiums, principally supplemental health insurance | $ 4,638 | $ 4,602 |
Net investment income | 794 | 801 |
Realized investment gains (losses): | ||
Other-than-temporary impairment losses realized | (10) | (14) |
Sales and redemptions | (7) | 91 |
Derivative and other gains (losses) | (123) | (47) |
Total realized investment gains (losses) | (140) | 30 |
Other income (loss) | 17 | 18 |
Total revenues | 5,309 | 5,451 |
Benefits and expenses: | ||
Benefits and claims, net | 3,052 | 3,025 |
Acquisition and operating expenses: | ||
Amortization of deferred policy acquisition costs | 294 | 292 |
Insurance commissions | 328 | 333 |
Insurance expenses | 614 | 563 |
Interest expense | 62 | 65 |
Other expenses | 61 | 56 |
Total acquisition and operating expenses | 1,359 | 1,309 |
Total benefits and expenses | 4,411 | 4,334 |
Earnings before income taxes | 898 | 1,117 |
Income taxes | 306 | 386 |
Net earnings | $ 592 | $ 731 |
Net earnings per share: | ||
Basic (in dollars per share) | $ 1.48 | $ 1.75 |
Diluted (in dollars per share) | $ 1.47 | $ 1.74 |
Weighted-average outstanding common shares used in computing earnings per share (In thousands): | ||
Basic (in shares) | 401,130 | 418,748 |
Diluted (in shares) | 404,069 | 420,920 |
Cash dividends per share | $ 0.43 | $ 0.41 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Statement of Comprehensive Income [Abstract] | |||
Net earnings | $ 592 | $ 731 | |
Other comprehensive income (loss) before income taxes: | |||
Unrealized foreign currency translation gains (losses) during period | 375 | 689 | |
Unrealized gains (losses) on investment securities: | |||
Unrealized holding gains (losses) on investment securities during period | (526) | 2,689 | |
Reclassification adjustment for realized (gains) losses on investment securities included in net earnings | 16 | (77) | |
Unrealized gains (losses) on derivatives during period | 2 | 3 | |
Pension liability adjustment during period | (2) | (2) | |
Total other comprehensive income (loss) before income taxes | (135) | 3,302 | |
Income tax expense (benefit) related to items of other comprehensive income (loss) | (137) | 991 | |
Other comprehensive income (loss), net of income taxes | [1] | 2 | 2,311 |
Total comprehensive income (loss) | $ 594 | $ 3,042 | |
[1] | All amounts in the table above are net of tax. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 | |
Securities held to maturity, at amortized cost: | |||
Fixed maturities | $ 34,401 | $ 33,350 | |
Other Investments | [1] | 1,701 | 1,450 |
Cash and cash equivalents | 4,205 | 4,859 | |
Total investments and cash | 120,503 | 116,361 | |
Receivables | 618 | 669 | |
Accrued investment income | 723 | 754 | |
Deferred policy acquisition costs | 9,255 | 8,993 | |
Property and equipment, at cost less accumulated depreciation | 444 | 433 | |
Other | [2] | 2,107 | 2,609 |
Total assets | 133,650 | 129,819 | |
Insurance Loss Reserves [Abstract] | |||
Future policy benefits | 79,624 | 76,106 | |
Unpaid policy claims | 4,230 | 4,045 | |
Unearned premiums | 6,825 | 6,916 | |
Other policyholders’ funds | 6,945 | 6,659 | |
Total policy liabilities | 97,624 | 93,726 | |
Income Taxes | 5,626 | 5,387 | |
Payables for return of cash collateral on loaned securities | 1,482 | 526 | |
Notes payable | 5,250 | 5,360 | |
Other | [3] | 3,328 | 4,338 |
Total liabilities | 113,310 | 109,337 | |
Shareholders’ equity: | |||
Common stock of $.10 par value. In thousands: authorized 1,900,000 shares in 2017 and 2016; issued 671,683 shares in 2017 and 671,249 shares in 2016 | 67 | 67 | |
Additional paid-in capital | 2,008 | 1,976 | |
Retained earnings | 26,400 | 25,981 | |
Accumulated other comprehensive income (loss): | |||
Unrealized foreign currency translation gains (losses) | (1,650) | (1,983) | |
Unrealized gain (losses) on investment securities | 4,474 | 4,805 | |
Unrealized gains (losses) on derivatives | (22) | (24) | |
Pension liability adjustment | (170) | (168) | |
Treasury stock, at average cost | (10,767) | (10,172) | |
Total shareholders’ equity | 20,340 | 20,482 | |
Total liabilities and shareholders’ equity | 133,650 | 129,819 | |
Investments Other Than Consolidated Variable Interest Entities | |||
Securities available for sale, at fair value: | |||
Fixed maturities | 72,113 | 68,778 | |
Perpetual securities | 1,555 | 1,425 | |
Equity securities | 271 | 265 | |
Securities held to maturity, at amortized cost: | |||
Fixed maturities | 34,401 | 33,350 | |
Variable Interest Entity, Consolidated | |||
Securities available for sale, at fair value: | |||
Fixed maturities | 4,964 | 4,982 | |
Perpetual securities | 215 | 208 | |
Equity securities | $ 1,078 | $ 1,044 | |
[1] | Includes $926 in 2017 and $819 in 2016 of loan receivables from consolidated variable interest entities | ||
[2] | Includes $146 in 2017 and $127 in 2016 of derivatives from consolidated variable interest entities | ||
[3] | Includes $125 in 2017 and $146 in 2016 of derivatives from consolidated variable interest entities |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Securities held to maturity, fixed maturities, fair value | $ 40,923 | $ 40,021 |
Common stock, par value (in dollars per share) | $ 0.1 | $ 0.1 |
Common stock, shares authorized (in shares) | 1,900,000,000 | 1,900,000,000 |
Common stock, shares issued (in shares) | 671,683,000 | 671,249,000 |
Asset derivatives | $ 580 | $ 1,207 |
Liability derivatives | 1,099 | 1,998 |
Investments Other Than Consolidated Variable Interest Entities | ||
Securities available for sale, fixed maturities, amortized cost | 66,118 | 62,195 |
Securities available for sale, perpetual securities, amortized cost | 1,317 | 1,269 |
Securities available for sale, equity securities, cost | 239 | 231 |
Securities held to maturity, fixed maturities, fair value | 40,923 | 40,021 |
Variable Interest Entity, Consolidated | ||
Securities available for sale, fixed maturities, amortized cost | 4,143 | 4,168 |
Securities available for sale, perpetual securities, amortized cost | 246 | 237 |
Securities available for sale, equity securities, cost | 1,013 | 972 |
Asset derivatives | 146 | 127 |
Liability derivatives | 125 | 146 |
Commercial mortgage and middle market loans | Variable Interest Entity, Consolidated | ||
Other investments held in unit trust, net of reserves, amortized cost | $ 926 | $ 819 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Millions | Total | Common stock: | Additional paid-in capital: | Retained earnings: | Accumulated other comprehensive income (loss): | Treasury stock: |
Balance, beginning of period at Dec. 31, 2015 | $ 67 | $ 1,828 | $ 24,007 | $ 625 | $ (8,819) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Exercise of stock options | 10 | |||||
Share-based compensation | 21 | |||||
Net earnings | $ 731 | 731 | ||||
Dividends to shareholders | (173) | |||||
Unrealized foreign currency translation gains (losses) during period, net of income taxes | 612 | |||||
Unrealized gains (losses) on investment securities during period, net of income taxes and reclassification adjustments | 1,698 | |||||
Unrealized gains (losses) on derivatives during period, net of income taxes | 2 | |||||
Pension liability adjustment during period, net of income taxes | (1) | |||||
Purchases of treasury stock | (612) | |||||
Treasury stock reissued | 7 | 18 | ||||
Balance, end of period at Mar. 31, 2016 | 20,021 | 67 | 1,866 | 24,565 | 2,936 | (9,413) |
Balance, beginning of period at Dec. 31, 2016 | 20,482 | 67 | 1,976 | 25,981 | 2,630 | (10,172) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Exercise of stock options | 10 | |||||
Share-based compensation | 12 | |||||
Net earnings | 592 | 592 | ||||
Dividends to shareholders | (173) | |||||
Unrealized foreign currency translation gains (losses) during period, net of income taxes | 333 | |||||
Unrealized gains (losses) on investment securities during period, net of income taxes and reclassification adjustments | (331) | |||||
Unrealized gains (losses) on derivatives during period, net of income taxes | 2 | |||||
Pension liability adjustment during period, net of income taxes | (2) | |||||
Purchases of treasury stock | (610) | |||||
Treasury stock reissued | 10 | 15 | ||||
Balance, end of period at Mar. 31, 2017 | $ 20,340 | $ 67 | $ 2,008 | $ 26,400 | $ 2,632 | $ (10,767) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Cash flows from operating activities: | ||
Net earnings | $ 592 | $ 731 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Change in receivables and advance premiums | 106 | 32 |
Increase in deferred policy acquisition costs | (41) | (37) |
Increase in policy liabilities | 666 | 919 |
Change in income tax liabilities | 271 | (367) |
Realized investment (gains) losses | 140 | (30) |
Other, net | 23 | 83 |
Net cash provided (used) by operating activities | 1,757 | 1,331 |
Securities available for sale: | ||
Fixed maturities sold | 1,385 | 266 |
Fixed maturities matured or called | 204 | 408 |
Perpetual securities matured or called | 0 | 35 |
Equity securities sold | 155 | 0 |
Securities held to maturity: | ||
Fixed maturities matured or called | 228 | 277 |
Costs of investments acquired: | ||
Available for sale fixed maturities acquired | (3,726) | (1,911) |
Available for sale equity securities acquired | (157) | (364) |
Other investments, net | (203) | (123) |
Settlement of derivatives, net | (44) | 273 |
Cash received (pledged or returned) as collateral, net | 654 | (189) |
Other, net | (23) | (159) |
Net cash provided (used) by investing activities | (1,527) | (1,487) |
Cash flows from financing activities: | ||
Purchases of treasury stock | (610) | (612) |
Proceeds from borrowings | 524 | 0 |
Principal payments under debt obligations | (654) | 0 |
Dividends paid to shareholders | (166) | (167) |
Change in investment-type contracts, net | 18 | 45 |
Treasury stock reissued | 11 | 7 |
Other, net | 1 | (39) |
Net cash provided (used) by financing activities | (876) | (766) |
Effect of exchange rate changes on cash and cash equivalents | (8) | 21 |
Net change in cash and cash equivalents | (654) | (901) |
Cash and cash equivalents, beginning of period | 4,859 | 4,350 |
Cash and cash equivalents, end of period | 4,205 | 3,449 |
Supplemental disclosures of cash flow information: | ||
Income taxes paid | 58 | 779 |
Interest paid | 47 | 54 |
Noncash interest | 15 | 12 |
Impairment losses included in realized investment losses | 10 | 14 |
Capital lease obligations incurred | 2 | 1 |
Associate stock bonus | ||
Treasury stock issued for: | ||
Treasury stock issued | 6 | 8 |
Shareholder dividend reinvestment | ||
Treasury stock issued for: | ||
Treasury stock issued | 7 | 6 |
Share-based compensation grants | ||
Treasury stock issued for: | ||
Treasury stock issued | $ 1 | $ 4 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Description of Business Aflac Incorporated (the Parent Company) and its subsidiaries (collectively, the Company) primarily sell supplemental health and life insurance in the United States and Japan. The Company's insurance business is marketed and administered through American Family Life Assurance Company of Columbus (Aflac), which operates in the United States (Aflac U.S.) and as a branch in Japan (Aflac Japan). American Family Life Assurance Company of New York (Aflac New York) is a wholly owned subsidiary of Aflac. Most of Aflac's policies are individually underwritten and marketed through independent agents. Additionally, Aflac U.S. markets and administers group products through Continental American Insurance Company (CAIC), branded as Aflac Group Insurance. Our insurance operations in the United States and our branch in Japan service the two markets for our insurance business. Aflac Japan's revenues, including realized gains and losses on its investment portfolio, accounted for 69% and 74% of the Company's total revenues in the three -month periods ended March 31, 2017 , and 2016 , respectively. The percentage of the Company's total assets attributable to Aflac Japan was 84% at March 31, 2017 , compared with 83% at December 31, 2016 . Basis of Presentation We prepare our financial statements in accordance with U.S. generally accepted accounting principles (GAAP). These principles are established primarily by the Financial Accounting Standards Board (FASB). In these Notes to the Consolidated Financial Statements, references to U.S. GAAP issued by the FASB are derived from the FASB Accounting Standards Codification TM (ASC). The preparation of financial statements in conformity with U.S. GAAP requires us to make estimates when recording transactions resulting from business operations based on currently available information. The most significant items on our balance sheet that involve a greater degree of accounting estimates and actuarial determinations subject to changes in the future are the valuation of investments and derivatives, deferred policy acquisition costs, liabilities for future policy benefits and unpaid policy claims, and income taxes. These accounting estimates and actuarial determinations are sensitive to market conditions, investment yields, mortality, morbidity, commission and other acquisition expenses, and terminations by policyholders. As additional information becomes available, or actual amounts are determinable, the recorded estimates will be revised and reflected in operating results. Although some variability is inherent in these estimates, we believe the amounts provided are adequate. The unaudited consolidated financial statements include the accounts of the Parent Company, its subsidiaries and those entities required to be consolidated under applicable accounting standards. All material intercompany accounts and transactions have been eliminated. In the opinion of management, the accompanying unaudited consolidated financial statements of the Company contain all adjustments, consisting of normal recurring accruals, which are necessary to fairly present the consolidated balance sheets as of March 31, 2017 and December 31, 2016 , the consolidated statements of earnings and comprehensive income (loss), shareholders' equity and cash flows for the three -month periods ended March 31, 2017 and 2016 . Results of operations for interim periods are not necessarily indicative of results for the entire year. As a result, these financial statements should be read in conjunction with the financial statements and notes thereto included in our annual report on Form 10-K for the year ended December 31, 2016 (2016 Annual Report). Reclassifications : Certain reclassifications have been made to prior-year amounts to conform to current-year reporting classifications. These reclassifications had no impact on net earnings or total shareholders' equity. Prior year foreign currency transaction gains and losses have been reclassified from Other income (loss) to Realized investment gains (losses) - Derivative and other gains (losses) to conform to current-year reporting classifications. These reclassifications had no impact on net earnings or total shareholders' equity. This change in classification was made to reflect that the major source of our foreign currency transaction gains and losses is directly or indirectly a result of our investment activity. New Accounting Pronouncements Recently Adopted Accounting Pronouncements Consolidation - Interests Held through Related Parties That Are under Common Control: In October 2016, the FASB issued amendments which clarify the consolidation guidance on how a reporting entity that is the single decision maker of a variable interest entity (VIE) should treat indirect interests in the entity held through related parties that are under common control with the reporting entity when determining whether it is the primary beneficiary of that VIE. We adopted this guidance as of January 1, 2017. The adoption of this guidance did not have a significant impact on our financial position, results of operations, or disclosures. Compensation - Stock Compensation - Improvements to Employee Share-Based Payment Accounting: In March 2016, the FASB issued amendments which simplify several aspects for share-based payment award transactions, including income tax consequences, classification of awards as either liability or equities, and classification on the statement of cash flows. We adopted this guidance as of January 1, 2017. The amendment requires prospective recognition of excess tax benefits and deficiencies in the income statement, rather than in paid-in capital. As a result of applying this requirement, we believe that recognition of excess tax benefits will increase volatility in our statement of operations but the adoption of this guidance did not have a significant impact on our statement of financial position, operations, or disclosures. The amendment also requires all excess tax benefits and tax deficiencies (including tax benefits of dividends on share-based payment awards) to be recognized as income tax expense or benefit in the income statement. The guidance requires modified retrospective transition for settlements on all outstanding awards (both historical and future) that did not give rise to an excess benefit to be recorded through retained earnings on a cumulative-effect basis. The adoption of these amendments in the guidance did not have a significant impact on our financial position, results of operations, or disclosures. Additionally, the amendment requires that the minimum statutory tax withholding for all outstanding liability awards be reclassified at the date of adoption to equity (assuming equity classification results from the guidance change), and as a cumulative-effect adjustment to equity be recorded on a modified retrospective basis. The adoption of these amendments in the guidance did not have a significant impact on our financial position, results of operations, or disclosures. The guidance requires certain reclassifications of balances on the statement of cash flows to or from operating and financing activities. The reclassification guidance did not have a significant impact on our statement of cash flows. The amendment allows an entity to elect whether to use estimates of forfeitures, or to account for forfeitures as they occur, using modified retrospective application. We have made an entity-wide accounting policy election to estimate the number of awards that are expected to vest (consistent with our prior policy) . The election and adoption of this guidance did not have a significant impact on our financial position, results of operations, or disclosures. Investments - Equity Method and Joint Ventures - Simplifying the Transition to the Equity Method of Accounting: In March 2016, the FASB issued amendments which eliminate the requirement that when an investment qualifies for use of the equity method as a result of an increase in the level of ownership interest or degree of influence, an investor must adjust the investment, results of operations, and retained earnings retroactively on a step-by-step basis as if the equity method had been in effect during all previous periods that the investment had been held. Per the amendments, upon qualifying for the equity method of accounting, no retroactive adjustment of the investment is required. The amendments also require that an entity that has an available-for-sale equity security that becomes qualified for the equity method of accounting recognize through earnings the unrealized holding gain or loss in accumulated other comprehensive income at the date the investment becomes qualified for use of the equity method. We adopted this guidance as of January 1, 2017. The adoption of this guidance did not have a significant impact on our financial position, results of operations, or disclosures. Derivatives and Hedging - Contingent Put and Call Options in Debt Instruments: In March 2016, the FASB issued amendments which clarify what steps are required when assessing whether the economic characteristics and risks of call (put) options are clearly and closely related to the economic characteristics and risks of their debt hosts, which is one of the criteria for bifurcating an embedded derivative. Consequently, when a call (put) option is contingently exercisable, an entity does not have to assess whether the event that triggers the ability to exercise a call (put) option is related to interest rates or credit risks. We adopted this guidance as of January 1, 2017. The adoption of this guidance did not have a significant impact on our financial position, results of operations, or disclosures. Derivatives and Hedging - Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships: In March 2016, the FASB issued amendments which clarify that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument does not, in and of itself, require dedesignation of that hedging relationship provided that all other hedge accounting criteria remain intact. We adopted this guidance as of January 1, 2017. The adoption of this guidance did not have a significant impact on our financial position, results of operations, or disclosures. Financial Services - Insurance - Disclosures about Short-Duration Contracts: In May 2015, the FASB issued updated guidance requiring enhanced disclosures by all insurance entities that issue short-duration contracts. The amendments require insurance entities to disclose for annual reporting periods information about the liability for unpaid claims and claim adjustment expenses. The amendments also require insurance entities to disclose information about significant changes in methodologies and assumptions used to calculate the liability for unpaid claims and claim adjustment expenses. In addition, the amendments require insurance entities to disclose for annual and interim reporting periods a roll-forward of the liability for unpaid claims and claim adjustment expenses. For health insurance claims, the amendments require the disclosure of the total of incurred-but-not-reported liabilities and expected development on reported claims included in the liability for unpaid claims and claim adjustment expenses. We adopted this guidance as of December 31, 2016, and have no insurance contracts classified as short-duration. The adoption of this guidance did not have a significant impact on our disclosures. Presentation of Financial Statements - Going Concern - Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern: In August 2014, the FASB issued this amendment that provides U.S. GAAP guidance on management’s responsibility in evaluating whether there is substantial doubt about a company’s ability to continue as a going concern and about related footnote disclosures. For each reporting period, management will be required to evaluate whether there are conditions or events that raise substantial doubt about a company’s ability to continue as a going concern within one year from the date the financial statements are issued. The new guidance requires a formal assessment of going concern by management based on criteria prescribed in the new guidance. We adopted this guidance as of December 31, 2016. The adoption of this guidance did not have a significant impact on our financial position, results of operations, or disclosures, and no substantial doubt currently exists about the Company’s ability to continue as a going concern. Accounting Pronouncements Pending Adoption Receivables-Nonrefundable Fees and Other Costs: Premium Amortization on Purchased Callable Debt Securities: In March 2017, the FASB issued amendments to shorten the amortization period for certain callable debt securities held at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount. The amendments are effective for public business entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The adoption of this guidance is not expected to have a significant impact on our financial position, results of operations, or disclosures. Compensation-Retirement Benefit: Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost: In March 2017, the FASB issued amendments requiring that an employer report the service cost component of net periodic pension cost and net periodic postretirement benefit cost in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net periodic pension cost and net periodic postretirement benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented. If a separate line item or items are used to present the other components of net benefit cost, that line item or items must be appropriately described. If a separate line item or items are not used, the line item or items used in the income statement to present the other components of net benefit cost must be disclosed. The amendments in this update also allow only the service cost component to be eligible for capitalization when applicable. The amendments are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted. The adoption of this guidance is not expected to have a significant impact on our financial position, results of operations, disclosures, or statements of cash flows. Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets - Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets: In February 2017, the FASB issued amendments clarifying that the accounting guidance for derecognition of nonfinancial assets does not apply to the derecognition of businesses, nonprofit activities or financial assets that meet the definition of "in substance nonfinancial assets." The new guidance defines an "in substance nonfinancial asset" to be an asset or group of assets for which substantially all of the fair value consists of nonfinancial assets and the group or subsidiary is not a business. The amendments are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Earlier adoption is permitted for fiscal years beginning after December 15, 2016, including interim periods therein. An entity is required to apply the amendments at the same time that it applies the FASB amendments for Revenue from Contracts with Customers. We are evaluating the impact of adoption of this guidance on our financial position, results of operations, disclosures, and statements of cash flows. Intangibles - Goodwill and Other - Simplifying the Test for Goodwill Impairment: In January 2017, the FASB issued amendments simplifying the subsequent measurement of goodwill. An entity, under this update, is no longer required to perform a hypothetical purchase price allocation to measure goodwill impairment. Instead, the entity should perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. The amendments are effective for public business entities that are U.S. SEC filers for annual or any interim goodwill impairment tests in fiscal years beginning after Dec. 15, 2019. Early adoption is permitted for any goodwill impairment tests performed on testing dates after January 1, 2017. We do not expect the adoption of this guidance to have a significant impact on our financial position, results of operations, or disclosures. Business Combinations - Clarifying the Definition of a Business: In January 2017, the FASB issued amendments clarifying when a set of assets and activities is a business. The amendments provide a screen to determine when a set of assets and activities is not a business. The amendments are effective for public business entities beginning after December 15, 2017, including interim periods within those periods. We do not expect the adoption of this guidance to have a significant impact on our financial position, results of operations, or disclosures. Statement of Cash Flows - Restricted Cash: In November 2016, the FASB issued amendments requiring that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. The amendments are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted. We do not expect the adoption of this guidance to have a significant impact on our financial position, results of operations, disclosures or statement of cash flows. Income Taxes - Intra-Entity Transfers of Assets Other Than Inventory: In October 2016, the FASB issued amendments that require an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The amendments are effective for public business entities for annual reporting periods beginning after December 15, 2017, including interim reporting periods within those annual reporting periods. Early adoption is permitted. We are evaluating the impact of adoption of this guidance on our financial position, results of operations and disclosures. Statement of Cash Flows - Classification of Certain Cash Receipts and Cash Payment s: In August 2016, the FASB issued amendments that provide guidance on eight specific statement of cash flows classification issues. The amendments are effective for public companies for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted for any interim or annual period. The adoption of this guidance is not expected to have a significant impact on our financial position, results of operations, disclosures, or statements of cash flows. Financial Instruments - Credit Losses - Measurement of Credit Losses on Financial Instruments: In June 2016, the FASB issued amendments that require a financial asset (or a group of financial assets) measured on an amortized cost basis to be presented net of an allowance for credit losses in order to reflect the amount expected to be collected on the financial asset(s). The measurement of expected credit losses is amended by replacing the incurred loss impairment methodology in current U.S. GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform about a credit loss. Credit losses on available-for-sale debt securities will continue to be measured in a manner similar to current U.S. GAAP. However, the amendments require that credit losses be presented as an allowance rather than as a writedown. Other amendments include changes to the balance sheet presentation and interest income recognition of purchased financial assets with a more-than-insignificant amount of credit deterioration since origination. The amendments are effective for public companies for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Companies may early adopt this guidance as of the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. We have identified certain financial instruments in scope of this guidance to include certain fixed maturity securities, loans and loan receivables and reinsurance recoverables (See Notes 3 and 7 for current balances of instruments in scope). We are continuing to evaluate the impact of adoption of this guidance on our financial position, results of operations and disclosures. Leases: In February 2016, the FASB issued updated guidance for accounting for leases. Per the amendments, lessees will be required to recognize all leases on the balance sheet, with the exception of short-term leases. A lease liability will be recorded for the obligation of a lessee to make lease payments arising from a lease. A right-of-use asset, will be recorded which represents the lessee’s right to use, or to control the use of, a specified asset for a lease term. Under the new guidance, lessor accounting is largely unchanged. The amendments are effective for public companies for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. We have identified certain operating leases in scope of this guidance to include office space and equipment leases (See Note 15 of the Notes to the Consolidated Financial Statements in the 2016 Annual Report for current balances of leases in scope). The leases within scope of this guidance will increase our right-of-use assets recorded on our financial position, however we estimate leases within scope of the guidance to represent less than 1% of our total assets as of March 31, 2017. We estimate that the adoption of this guidance will not have a significant impact on our financial position, results of operations and disclosures. Financial Instruments - Overall - Recognition and Measurement of Financial Assets and Financial Liabilities: In January 2016, the FASB issued guidance to address certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The main provisions require that equity investments be measured at fair value with changes recognized in net income; that changes in instrument-specific credit risk for financial liabilities that are measured under the fair value option be recognized in other comprehensive income; and that entities would make the assessment of the ability to realize a deferred tax asset (DTA) related to an available-for-sale (AFS) debt security in combination with the entity's other DTAs. The amendments are effective for public companies for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is not permitted, with the exception of the own credit provision if an entity has elected to measure a liability at fair value. We have identified certain financial instruments in scope of this guidance to include certain fixed maturity securities, perpetual securities and equity securities (See Note 3 for current balances of instruments in scope). We estimate that the impact of this guidance will increase volatility in our statement of operations and we are continuing to evaluate the impact of this guidance on our statement of financial position, operations and disclosures. Revenue from Contracts with Customers: In May 2014, the FASB issued updated guidance that affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards (e.g., insurance contracts or lease contracts). The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In August 2015, the FASB deferred the effective date for this standard to annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods. We have identified revenue in scope of this guidance to include certain revenues associated with affiliated entities in support of our operations. We estimate the revenue within scope of the guidance to represent less than 1% of our total revenues as of March 31, 2017. We estimate that the adoption of this guidance will not have a significant impact on our financial position, results of operations and disclosures. Recent accounting guidance not discussed above is not applicable, did not have, or is not expected to have a material impact to our business. For additional information on new accounting pronouncements and recent accounting guidance and their impact, if any, on our financial position or results of operations, see Note 1 of the Notes to the Consolidated Financial Statements in the 2016 Annual Report. |
BUSINESS SEGMENT INFORMATION
BUSINESS SEGMENT INFORMATION | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
BUSINESS SEGMENT INFORMATION | BUSINESS SEGMENT INFORMATION The Company consists of two reportable insurance business segments: Aflac Japan and Aflac U.S., both of which sell supplemental health and life insurance. Operating business segments that are not individually reportable and business activities, including reinsurance retrocession activities, not included in Aflac Japan or Aflac U.S. are included in the "Other business segments" category. We do not allocate corporate overhead expenses to business segments. Consistent with U.S. GAAP accounting guidance for segment reporting, we evaluate and manage our business segments using a financial performance measure called pretax operating earnings. Our definition of operating earnings includes interest cash flows associated with notes payable and hedge costs related to foreign currency denominated investments, but excludes certain items that cannot be predicted or that are outside of management's control, such as realized investment gains and losses from securities transactions, impairments, and certain derivative and foreign currency activities; nonrecurring items; and other non-operating income (loss) from net earnings. Nonrecurring and other non-operating items consist of infrequent events and activity not associated with the normal course of the Company’s insurance operations and do not reflect Aflac’s underlying business performance. We exclude income taxes related to operations to arrive at pretax operating earnings. Information regarding operations by segment follows: Three Months Ended (In millions) 2017 2016 Revenues: Aflac Japan: Net earned premiums $ 3,194 $ 3,179 Net investment income, less amortized hedge costs (1) 557 590 Other income 10 8 Total Aflac Japan 3,761 3,777 Aflac U.S.: Net earned premiums 1,390 1,367 Net investment income 178 174 Other income 1 3 Total Aflac U.S. 1,569 1,544 Other business segments 67 65 Total business segment revenues 5,397 5,386 Realized investment gains (losses) (1), (2), (3) (109 ) 40 Corporate 87 67 Intercompany eliminations and other (66 ) (42 ) Total revenues $ 5,309 $ 5,451 (1) Hedge costs related to hedging U.S. dollar-denominated investments held in Aflac Japan were $52 and $32 for the three-month periods ended March 31, 2017 , and 2016 , respectively, and have been reclassified from realized investment gains (losses) and reported as a deduction from net investment income when analyzing segment operations to conform to current year reporting. (2) Excluding a gain of $21 and $22 for the three -month periods ended March 31, 2017 , and 2016 , respectively, related to the interest rate component of the change in fair value of foreign currency swaps on notes payable which is classified as an operating gain when analyzing segment operations (3) Prior year foreign currency transaction gains and losses have been reclassified from other non-operating income (loss) to realized investment gains (losses) to conform to current-year reporting classifications. These reclassifications had no impact on total revenues. Three Months Ended (In millions) 2017 2016 Pretax earnings: Aflac Japan (1) $ 769 $ 806 Aflac U.S. 310 332 Other business segments 0 3 Total business segment pretax operating earnings 1,079 1,141 Interest expense, noninsurance operations (29 ) (29 ) Corporate and eliminations (23 ) (35 ) Pretax operating earnings 1,027 1,077 Realized investment gains (losses) (1), (2), (3) (109 ) 40 Other non-operating income (loss) (3) (20 ) 0 Total earnings before income taxes $ 898 $ 1,117 Income taxes applicable to pretax operating earnings $ 351 $ 372 Effect of foreign currency translation on after-tax operating earnings 5 13 (1) Hedge costs related to hedging U.S. dollar-denominated investments held in Aflac Japan were $52 and $32 for the three-month periods ended March 31, 2017 , and 2016 , respectively, and have been reclassified from realized investment gains (losses) and reported as a deduction from pretax operating earnings when analyzing segment operations to conform to current year reporting. (2) Excluding a gain of $21 and $22 for the three -month periods ended March 31, 2017 , and 2016 , respectively, related to the interest rate component of the change in fair value of foreign currency swaps on notes payable which is classified as an operating gain when analyzing segment operations (3) Prior year foreign currency transaction gains and losses have been reclassified from other non-operating income (loss) to realized investment gains (losses) to conform to current-year reporting classifications. These reclassifications had no impact on total earnings before income taxes. Assets were as follows: (In millions) March 31, December 31, Assets: Aflac Japan $ 112,023 $ 107,858 Aflac U.S. 19,817 19,453 Other business segments 338 270 Total business segment assets 132,178 127,581 Corporate 26,024 26,476 Intercompany eliminations (24,552 ) (24,238 ) Total assets $ 133,650 $ 129,819 |
INVESTMENTS
INVESTMENTS | 3 Months Ended |
Mar. 31, 2017 | |
Investments [Abstract] | |
INVESTMENTS | INVESTMENTS Investment Holdings The amortized cost for our investments in debt and perpetual securities, the cost for equity securities and the fair values of these investments are shown in the following tables. March 31, 2017 (In millions) Cost or Gross Gross Fair Securities available for sale, carried at fair value: Fixed maturities: Yen-denominated: Japan government and agencies $ 26,311 $ 3,203 $ 366 $ 29,148 Municipalities 281 26 12 295 Mortgage- and asset-backed securities 272 32 0 304 Public utilities 1,637 324 6 1,955 Sovereign and supranational 846 133 6 973 Banks/financial institutions 3,039 414 83 3,370 Other corporate 3,429 596 16 4,009 Total yen-denominated 35,815 4,728 489 40,054 U.S. dollar-denominated: U.S. government and agencies 161 11 0 172 Municipalities 901 133 7 1,027 Mortgage- and asset-backed securities 184 16 0 200 Public utilities 5,296 669 77 5,888 Sovereign and supranational 326 87 0 413 Banks/financial institutions 2,680 513 18 3,175 Other corporate 24,898 1,972 722 26,148 Total U.S. dollar-denominated 34,446 3,401 824 37,023 Total fixed maturities 70,261 8,129 1,313 77,077 Perpetual securities: Yen-denominated: Banks/financial institutions 1,315 208 50 1,473 Other corporate 196 23 0 219 U.S. dollar-denominated: Banks/financial institutions 52 26 0 78 Total perpetual securities 1,563 257 50 1,770 Equity securities: Yen-denominated 668 63 10 721 U.S. dollar-denominated 584 55 11 628 Total equity securities 1,252 118 21 1,349 Total securities available for sale $ 73,076 $ 8,504 $ 1,384 $ 80,196 March 31, 2017 (In millions) Cost or Gross Gross Fair Securities held to maturity, carried at amortized cost: Fixed maturities: Yen-denominated: Japan government and agencies $ 21,493 $ 5,114 $ 0 $ 26,607 Municipalities 363 104 0 467 Mortgage- and asset-backed securities 30 2 0 32 Public utilities 3,324 376 7 3,693 Sovereign and supranational 2,702 307 0 3,009 Banks/financial institutions 3,650 204 24 3,830 Other corporate 2,839 446 0 3,285 Total yen-denominated 34,401 6,553 31 40,923 Total securities held to maturity $ 34,401 $ 6,553 $ 31 $ 40,923 December 31, 2016 (In millions) Cost or Gross Gross Fair Securities available for sale, carried at fair value: Fixed maturities: Yen-denominated: Japan government and agencies $ 22,857 $ 3,359 $ 160 $ 26,056 Municipalities 246 29 8 267 Mortgage- and asset-backed securities 1,096 33 8 1,121 Public utilities 1,533 318 3 1,848 Sovereign and supranational 862 186 5 1,043 Banks/financial institutions 2,673 403 74 3,002 Other corporate 3,192 623 3 3,812 Total yen-denominated 32,459 4,951 261 37,149 U.S dollar-denominated: U.S. government and agencies 148 10 0 158 Municipalities 894 142 8 1,028 Mortgage- and asset-backed securities 196 20 0 216 Public utilities 5,205 690 60 5,835 Sovereign and supranational 335 91 0 426 Banks/financial institutions 2,570 507 16 3,061 Other corporate 24,556 2,021 690 25,887 Total U.S. dollar-denominated 33,904 3,481 774 36,611 Total fixed maturities 66,363 8,432 1,035 73,760 Perpetual securities: Yen-denominated: Banks/financial institutions 1,266 128 49 1,345 Other corporate 189 24 0 213 U.S. dollar-denominated: Banks/financial institutions 51 24 0 75 Total perpetual securities 1,506 176 49 1,633 Equity securities: Yen-denominated 624 83 2 705 U.S. dollar-denominated 579 31 6 604 Total equity securities 1,203 114 8 1,309 Total securities available for sale $ 69,072 $ 8,722 $ 1,092 $ 76,702 December 31, 2016 (In millions) Cost or Gross Gross Fair Securities held to maturity, carried at amortized cost: Fixed maturities: Yen-denominated: Japan government and agencies $ 20,702 $ 5,338 $ 0 $ 26,040 Municipalities 350 107 0 457 Mortgage- and asset-backed securities 30 2 0 32 Public utilities 3,201 358 23 3,536 Sovereign and supranational 2,602 283 8 2,877 Banks/financial institutions 3,731 195 26 3,900 Other corporate 2,734 452 7 3,179 Total yen-denominated 33,350 6,735 64 40,021 Total securities held to maturity $ 33,350 $ 6,735 $ 64 $ 40,021 The methods of determining the fair values of our investments in fixed-maturity securities, perpetual securities and equity securities are described in Note 5. During the first three months of 2017 and 2016, respectively, we did not reclassify any investments from the held-to-maturity category to the available-for-sale category. Contractual and Economic Maturities The contractual maturities of our investments in fixed maturities at March 31, 2017 , were as follows: Aflac Japan Aflac U.S. (In millions) Amortized Fair Amortized Fair Available for sale: Due in one year or less $ 145 $ 161 $ 74 $ 77 Due after one year through five years 3,561 3,788 664 716 Due after five years through 10 years 9,846 10,093 3,128 3,324 Due after 10 years 43,392 48,447 8,462 9,421 Mortgage- and asset-backed securities 316 361 43 47 Total fixed maturities available for sale $ 57,260 $ 62,850 $ 12,371 $ 13,585 Held to maturity: Due after one year through five years $ 2,086 $ 2,193 $ 0 $ 0 Due after five years through 10 years 1,645 1,813 0 0 Due after 10 years 30,640 36,884 0 0 Mortgage- and asset-backed securities 30 33 0 0 Total fixed maturities held to maturity $ 34,401 $ 40,923 $ 0 $ 0 At March 31, 2017 , the Parent Company and other business segments had portfolios of available-for-sale fixed-maturity securities totaling $630 million at amortized cost and $642 million at fair value, which are not included in the table above. Expected maturities may differ from contractual maturities because some issuers have the right to call or prepay obligations with or without call or prepayment penalties. The majority of our perpetual securities are subordinated to other debt obligations of the issuer, but rank higher than the issuer's equity securities. Perpetual securities have characteristics of both debt and equity investments, along with unique features that create economic maturity dates for the securities. Although perpetual securities have no contractual maturity date, they have stated interest coupons that were fixed at their issuance and subsequently change to a floating short-term interest rate after some period of time. The instruments are generally callable by the issuer at the time of changing from a fixed coupon rate to a new variable rate of interest, which is determined by the combination of some market index plus a fixed amount of basis points. The net effect is to create an expected maturity date for the instrument. The economic maturities of our investments in perpetual securities, which were all reported as available for sale at March 31, 2017 , were as follows: Aflac Japan Aflac U.S. (In millions) Amortized Fair Amortized Fair Due in one year or less $ 90 $ 87 $ 0 $ 0 Due after one year through five years 196 219 0 0 Due after 10 years 1,238 1,407 39 57 Total perpetual securities available for sale $ 1,524 $ 1,713 $ 39 $ 57 Investment Concentrations Our process for investing in credit-related investments begins with an independent approach to underwriting each issuer's fundamental credit quality. We evaluate independently those factors which we believe could influence an issuer's ability to make payments under the contractual terms of our instruments. This includes a thorough analysis of a variety of items including the issuer's country of domicile (including political, legal, and financial considerations); the industry in which the issuer competes (with an analysis of industry structure, end-market dynamics, and regulation); company specific issues (such as management, assets, earnings, cash generation, and capital needs); and contractual provisions of the instrument (such as financial covenants and position in the capital structure). We further evaluate the investment considering broad business and portfolio management objectives, including asset/liability needs, portfolio diversification, and expected income. Investment exposures that individually exceeded 10% of shareholders' equity were as follows: March 31, 2017 December 31, 2016 (In millions) Credit Amortized Fair Credit Amortized Fair Japan National Government (1) A $47,131 $54,971 A $42,931 $51,345 (1) Japan Government Bonds (JGBs) or JGB-backed securities Realized Investment Gains and Losses Information regarding pretax realized gains and losses from investments is as follows: Three Months Ended (In millions) 2017 2016 Realized investment gains (losses): Fixed maturities: Available for sale: Gross gains from sales $ 12 $ 2 Gross losses from sales (1) (15 ) (4 ) Net gains (losses) from redemptions (1) (29 ) 83 Other-than-temporary impairment losses (1) (4 ) (12 ) Total fixed maturities (36 ) 69 Perpetual securities: Available for sale: Net gains (losses) from redemptions 0 10 (1) Other-than-temporary impairment losses 0 (2 ) (1) Total perpetual securities 0 8 Equity securities: Net gains (losses) from redemptions 25 0 Other-than-temporary impairment losses (6 ) 0 Total equity securities 19 0 Derivatives and other: Derivative gains (losses) (52 ) (4 ) Foreign currency gains (losses) (71 ) (43 ) Total derivatives and other (123 ) (47 ) Total realized investment gains (losses) $ (140 ) $ 30 ( 1) Primarily driven by foreign exchange Unrealized Investment Gains and Losses Effect on Shareholders’ Equity The net effect on shareholders’ equity of unrealized gains and losses from investment securities was as follows: (In millions) March 31, 2017 December 31, Unrealized gains (losses) on securities available for sale $ 7,120 $ 7,630 Deferred income taxes (2,646 ) (2,825 ) Shareholders’ equity, unrealized gains (losses) on investment securities $ 4,474 $ 4,805 Gross Unrealized Loss Aging The following tables show the fair values and gross unrealized losses of our available-for-sale and held-to-maturity investments that were in an unrealized loss position, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position. March 31, 2017 Total Less than 12 months 12 months or longer (In millions) Fair Unrealized Fair Unrealized Fair Unrealized Fixed Maturities: Japan government and Yen-denominated $ 5,940 $ 366 $ 5,940 $ 366 $ 0 $ 0 Municipalities: U.S. dollar-denominated 45 7 0 0 45 7 Yen-denominated 132 12 132 12 0 0 Public utilities: U.S. dollar-denominated 1,642 77 1,124 37 518 40 Yen-denominated 325 13 127 6 198 7 Sovereign and supranational: Yen-denominated 39 6 39 6 0 0 Banks/financial institutions: U.S. dollar-denominated 390 18 309 6 81 12 Yen-denominated 1,531 107 646 34 885 73 Other corporate: U.S. dollar-denominated 10,690 722 7,046 272 3,644 450 Yen-denominated 415 16 415 16 0 0 Total fixed maturities 21,149 1,344 15,778 755 5,371 589 Perpetual securities: Yen-denominated 409 50 0 0 409 50 Total perpetual securities 409 50 0 0 409 50 Equity securities: U.S. dollar-denominated 131 11 117 8 14 3 Yen-denominated 208 10 172 5 36 5 Total equity securities 339 21 289 13 50 8 Total $ 21,897 $ 1,415 $ 16,067 $ 768 $ 5,830 $ 647 December 31, 2016 Total Less than 12 months 12 months or longer (In millions) Fair Unrealized Fair Unrealized Fair Unrealized Fixed Maturities: Japan government and Yen-denominated $ 3,958 $ 160 $ 3,958 $ 160 $ 0 $ 0 Municipalities: U.S. dollar-denominated 44 8 0 0 44 8 Yen-denominated 105 8 105 8 0 0 Mortgage- and asset- Yen-denominated 713 8 713 8 0 0 Public utilities: U.S. dollar-denominated 1,265 60 790 32 475 28 Yen-denominated 635 26 347 14 288 12 Sovereign and supranational: Yen-denominated 244 13 38 5 206 8 Banks/financial institutions: U.S. dollar-denominated 268 16 238 10 30 6 Yen-denominated 1,521 100 636 19 885 81 Other corporate: U.S. dollar-denominated 10,462 690 7,252 346 3,210 344 Yen-denominated 321 10 321 10 0 0 Total fixed maturities 19,536 1,099 14,398 612 5,138 487 Perpetual securities: Yen-denominated 479 49 85 1 394 48 Total perpetual securities 479 49 85 1 394 48 Equity securities: U.S. dollar-denominated 211 6 211 6 0 0 Yen-denominated 49 2 49 2 0 0 Total equity securities 260 8 260 8 0 0 Total $ 20,275 $ 1,156 $ 14,743 $ 621 $ 5,532 $ 535 Analysis of Securities in Unrealized Loss Positions The unrealized losses on our fixed maturity or perpetual securities investments have been primarily related to general market changes in interest rates, foreign exchange rates, and/or the levels of credit spreads rather than specific concerns with the issuer's ability to pay interest and repay principal. The unrealized losses on our investments in equity securities are primarily related to foreign exchange rates, general market conditions which reflect prospects for the economy as a whole, or specific information pertaining to an industry or an individual company. For any significant declines in fair value of our fixed income or perpetual securities, we perform a more focused review of the related issuers' credit profile. For corporate issuers, we evaluate their assets, business profile including industry dynamics and competitive positioning, financial statements and other available financial data. For non-corporate issuers, we analyze all sources of credit support, including issuer-specific factors. We utilize information available in the public domain and, for certain private placement issuers, from consultations with the issuers directly. We also consider ratings from Nationally Recognized Statistical Rating Organizations (NRSROs), as well as the specific characteristics of the security we own including seniority in the issuer's capital structure, covenant predictions, or other relevant features. From these reviews, we evaluate the issuers' continued ability to service our investment through payment of interest and principal. For any significant declines in fair value of our equity securities, we review the severity of the security’s decline in fair value coupled with the length of time the fair value of the security has been below cost. We also perform a more focused review of the financial condition and near-term prospects of the issuer as well as general market conditions reflecting the prospects for the economy as a whole, and determine whether we have the intent to hold the securities until they recover in value. Assuming no credit-related factors develop, unrealized gains and losses on fixed maturities and perpetual securities are expected to diminish as investments near maturity. Based on our credit analysis, we believe that the issuers of our fixed maturity and perpetual security investments in the sectors shown in the table above have the ability to service their obligations to us. Other Investments The table below reflects the composition of the carrying value for other investments as of the periods presented. (In millions) March 31, 2017 December 31, 2016 Other investments: Commercial mortgage loans $ 870 $ 855 Middle market loans 439 319 Short-term investments 141 89 Policy loans 197 184 Other 54 3 Total other investments $ 1,701 $ 1,450 Loans and Loan Receivables We classify our commercial mortgage loans (CMLs) and middle market loans (MMLs) as held-for-investment and include them in the other investments line on the consolidated balance sheets. We carry them on the balance sheet at amortized cost less an estimated allowance for loan losses. Our loan allowance for losses is established using both specific and general allowances. The specific allowance is used on an individual loan basis for those impaired loans where we expect to incur a loss. The general allowance is used for loans grouped by similar risk characteristics where a loan-specific or market-specific risk has not been identified, but for which we anticipate to incur a loss. As of March 31, 2017 and December 31, 2016 , our allowance for loan losses was $4 million and $3 million , respectively. As of March 31, 2017 and December 31, 2016 , we had no loans that were past due in regards to principal and/or interest payments. Additionally, we held no loans that were on nonaccrual status or considered impaired as of March 31, 2017 and December 31, 2016 . We had no troubled debt restructurings during the three months ended March 31, 2017 and 2016. Middle Market Loans The carrying value for middle market loans included an unfunded amount of $135 million and $91 million , as of March 31, 2017, and December 31, 2016, respectively, that is reflected in other liabilities on the consolidated balance sheets. As of March 31, 2017 , we had commitments of $658 million to fund potential future loan originations related to this investment program, inclusive of loans held in unit trust structures. These commitments are contingent upon the availability of middle market loans that meet our underwriting criteria. Commercial Mortgage Loans As of March 31, 2017 , we had $18 million in outstanding commitments to fund commercial mortgage loans, inclusive of loans held in unit trust structures. These commitments are contingent on the final underwriting and due diligence to be performed. Variable Interest Entities (VIEs) As a condition of our involvement or investment in a VIE, we enter into certain protective rights and covenants that preclude changes in the structure of the VIE that would alter the creditworthiness of our investment or our beneficial interest in the VIE. For those VIEs other than certain unit trust structures, our involvement is passive in nature. We are not, nor have we been, required to purchase any securities issued in the future by these VIEs. Our ownership interest in VIEs is limited to holding the obligations issued by them. We have no direct or contingent obligations to fund the limited activities of these VIEs, nor do we have any direct or indirect financial guarantees related to the limited activities of these VIEs. We have not provided any assistance or any other type of financing support to any of the VIEs we invest in, nor do we have any intention to do so in the future. For those VIEs in which we hold debt obligations, the weighted-average lives of our notes are very similar to the underlying collateral held by these VIEs where applicable. We also utilize unit trust structures in our Aflac Japan segment to invest in various asset classes. As the sole investor of these VIEs, we are required to consolidate these entities under U.S. GAAP. Our risk of loss related to our interests in any of our VIEs is limited to the carrying value of the related investments held in the VIE. VIEs - Consolidated The following table presents the cost or amortized cost, fair value and balance sheet caption in which the assets and liabilities of consolidated VIEs are reported. Investments in Consolidated Variable Interest Entities March 31, 2017 December 31, 2016 (In millions) Cost or Amortized Fair Cost or Amortized Fair Assets: Fixed maturities, available for sale $ 4,143 $ 4,964 $ 4,168 $ 4,982 Perpetual securities, available for sale 246 215 237 208 Equity securities 1,013 1,078 972 1,044 Other investments (1) 926 906 819 789 Other assets (2) 146 146 127 127 Total assets of consolidated VIEs $ 6,474 $ 7,309 $ 6,323 $ 7,150 Liabilities: Other liabilities (2) $ 125 $ 125 $ 146 $ 146 Total liabilities of consolidated VIEs $ 125 $ 125 $ 146 $ 146 (1) Consists of CMLs and MMLs (2) Consist entirely of derivatives We are substantively the only investor in the consolidated VIEs listed in the table above. As the sole investor in these VIEs, we have the power to direct the activities of a variable interest entity that most significantly impact the entity's economic performance and are therefore considered to be the primary beneficiary of the VIEs that we consolidate. We also participate in substantially all of the variability created by these VIEs. The activities of these VIEs are limited to holding invested assets and foreign currency, and/or credit default swaps (CDS), as appropriate, and utilizing the cash flows from these securities to service our investment. Neither we nor any of our creditors are able to obtain the underlying collateral of the VIEs unless there is an event of default or other specified event. For those VIEs that contain a swap, we are not a direct counterparty to the swap contracts and have no control over them. Our loss exposure to these VIEs is limited to our original investment. Our consolidated VIEs do not rely on outside or ongoing sources of funding to support their activities beyond the underlying collateral and swap contracts, if applicable. With the exception of our investment in unit trust structures, the underlying collateral assets and funding of our consolidated VIEs are generally static in nature and the underlying collateral and the reference corporate entities covered by any CDS contracts were all investment grade at the time of issuance. Investments in Unit Trust Structures We invest through unit trust structures in yen-denominated public equity securities, U.S. dollar-denominated public equity securities, bank loans, commercial mortgage loans, infrastructure debt, and middle market loans in which we are the only investor, requiring us to consolidate these trusts under U.S. GAAP. The yen-denominated and U.S. dollar-denominated equity securities, bank loans and certain infrastructure debt are classified as available-for-sale in the financial statements. The commercial mortgage loans, middle market loans and certain infrastructure debt that meets the criteria to be classified as a loan are classified as loans held for investment and reflected in other investments on the consolidated balance sheets at amortized cost. VIEs-Not Consolidated The table below reflects the amortized cost, fair value and balance sheet caption in which our investment in VIEs not consolidated are reported. Investments in Variable Interest Entities Not Consolidated March 31, 2017 December 31, 2016 (In millions) Amortized Fair Amortized Fair Assets: Fixed maturities, available for sale $ 4,823 $ 5,354 $ 4,729 $ 5,261 Perpetual securities, available for sale 178 230 172 200 Fixed maturities, held to maturity 2,660 3,039 2,563 2,948 Other investments 52 52 1 1 Total investments in VIEs not consolidated $ 7,713 $ 8,675 $ 7,465 $ 8,410 The VIEs that we are not required to consolidate are investments that are in the form of debt obligations from the VIEs that are irrevocably and unconditionally guaranteed by their corporate parents or sponsors. These VIEs are the primary financing vehicles used by their corporate sponsors to raise financing in the capital markets. The variable interests created by these VIEs are principally or solely a result of the debt instruments issued by them. We do not have the power to direct the activities that most significantly impact the entity's economic performance, nor do we have the obligation to absorb losses of the entity or the right to receive benefits from the entity. As such, we are not the primary beneficiary of these VIEs and are therefore not required to consolidate them. These VIE investments comprise securities from 149 separate issuers with an average credit rating of BBB as of March 31, 2017 , compared with 145 separate issuers with an average credit rating of BBB as of December 31, 2016 . Securities Lending and Pledged Securities We lend fixed-maturity securities to financial institutions in short-term security-lending transactions. These short-term security-lending arrangements increase investment income with minimal risk. Our security lending policy requires that the fair value of the securities and/or unrestricted cash received as collateral be 102% or more of the fair value of the loaned securities. These securities continue to be carried as investment assets on our balance sheet during the terms of the loans and are not reported as sales. We receive cash or other securities as collateral for such loans. For loans involving unrestricted cash or securities as collateral, the collateral is reported as an asset with a corresponding liability for the return of the collateral. Details of our securities lending activities were as follows: Securities Lending Transactions Accounted for as Secured Borrowings March 31, 2017 Remaining Contractual Maturity of the Agreements (In millions) Overnight (1) Up to 30 Total Securities lending transactions: Japan government and agencies $ 0 $ 885 $ 885 Public utilities 87 0 87 Banks/financial institutions 38 0 38 Other corporate 472 0 472 Total borrowings $ 597 $ 885 $ 1,482 Gross amount of recognized liabilities for securities lending transactions $ 1,482 Amounts related to agreements not included in offsetting disclosure in Note 4 $ 0 (1) These securities are pledged as collateral under our U.S. securities lending program and can be called at our discretion; therefore, they are classified as Overnight and Continuous. Securities Lending Transactions Accounted for as Secured Borrowings December 31, 2016 Remaining Contractual Maturity of the Agreements (In millions) Overnight (1) Up to 30 Total Securities lending transactions: Public utilities $ 62 $ 0 $ 62 Banks/financial institutions 34 0 34 Other corporate 430 0 430 Total borrowings $ 526 $ 0 $ 526 Gross amount of recognized liabilities for securities lending transactions $ 526 Amounts related to agreements not included in offsetting disclosure in Note 4 $ 0 (1) These securities are pledged as collateral under our U.S. securities lending program and can be called at our discretion; therefore, they are classified as Overnight and Continuous. We did not have any repurchase agreements or repurchase-to-maturity transactions outstanding as of March 31, 2017 and December 31, 2016 , respectively. Certain fixed-maturity securities can be pledged as collateral as part of derivative transactions, or pledged to support state deposit requirements or certain investment programs. For additional information regarding pledged securities related to derivative transactions, see Note 4. |
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS | 3 Months Ended |
Mar. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS | DERIVATIVE INSTRUMENTS Our freestanding derivative financial instruments have historically consisted of: (1) foreign currency swaps and credit default swaps that are associated with investments in special-purpose entities, including VIEs where we are the primary beneficiary; (2) foreign currency forwards and options used in hedging foreign exchange risk on U.S. dollar-denominated investments in Aflac Japan's portfolio; (3) foreign currency forwards and options used to hedge foreign exchange risk from our net investment in Aflac Japan and economically hedge certain portions of forecasted cash flows denominated in yen; (4) swaps associated with our notes payable, consisting of cross-currency interest rate swaps, also referred to as foreign currency swaps, associated with certain senior notes and our subordinated debentures; and (5) options on interest rate swaps (or interest rate swaptions) and futures used to hedge interest rate risk for certain available-for-sale securities. We do not use derivative financial instruments for trading purposes, nor do we engage in leveraged derivative transactions. Some of our derivatives are designated as cash flow hedges, fair value hedges or net investment hedges; however, other derivatives do not qualify for hedge accounting or we elect not to designate them as an accounting hedge. We utilize a net investment hedge to mitigate foreign exchange exposure resulting from our net investment in Aflac Japan. In addition to designating derivatives as hedging instruments, we have designated the majority of the Parent Company's yen-denominated liabilities (notes payable and loans) as nonderivative hedging instruments for this net investment hedge. Derivative Types We enter into foreign currency swaps pursuant to which we exchange an initial principal amount in one currency for an initial principal amount of another currency, with an agreement to re-exchange the currencies at a future date at an agreed upon exchange rate. There may also be periodic exchanges of payments at specified intervals based on the agreed upon rates and notional amounts. Foreign currency swaps are used primarily in the consolidated VIEs in our Aflac Japan portfolio to convert foreign-denominated cash flows to yen, the functional currency of Aflac Japan, in order to minimize cash flow fluctuations. We also use foreign currency swaps to economically convert certain of our U.S. dollar-denominated senior note and subordinated debenture principal and interest obligations into yen-denominated obligations. Foreign currency forwards and options are executed for the Aflac Japan segment in order to hedge the currency risk on the carrying value of certain U.S. dollar-denominated investments. The average maturity of these forwards and options can change depending on factors such as market conditions and types of investments being held. In forward transactions, Aflac Japan agrees with another party to buy a fixed amount of yen and sell a corresponding amount of U.S. dollars at a specified future date. Aflac Japan also executes foreign currency option transactions in a collar strategy, where Aflac Japan agrees with another party to simultaneously purchase a fixed amount of U.S. dollar put options and sell U.S. dollar call options. The combination of these two actions results in no net premium being paid (i.e. a costless or zero-cost collar). The foreign currency forwards and options are used in fair value hedging relationships to mitigate the foreign exchange risk associated with U.S. dollar-denominated investments supporting yen-denominated liabilities. Foreign currency forwards and options are also used to hedge the currency risk associated with the net investment in Aflac Japan. In these forward transactions, Aflac agrees with another party to buy a fixed amount of U.S. dollars and sell a corresponding amount of yen at a specified future date. In the option transactions, we use a combination of foreign currency options to protect expected future cash flows by simultaneously purchasing yen put options (options that protect against a weakening yen) and selling yen call options (options that limit participation in a strengthening yen). The combination of these two actions results in no net premium being paid (i.e. a costless or zero-cost collar). The only CDS that we currently hold relates to components of an investment in a VIE and is used to assume credit risk related to an individual security. This CDS contract entitles the consolidated VIE to receive periodic fees in exchange for an obligation to compensate the derivative counterparties should the referenced security issuer experience a credit event, as defined in the contract. Interest rate 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. Typically, at the time a swap is entered into, the cash flow streams exchanged by the counterparties are equal in value. No cash or principal payments are exchanged at the inception of the contract. Interest rate swaps are primarily used to convert interest receipts on floating-rate fixed-maturity securities contracts to fixed rates. These derivatives are predominantly used to better match cash receipts from assets with cash disbursements required to fund liabilities. Interest rate swaptions are options on interest rate swaps. Interest rate collars are combinations of two swaption positions and are executed in order to hedge certain U.S. dollar-denominated available-for-sale securities that are held in the Aflac Japan segment. We use collars to protect against significant changes in the fair value associated with our U.S. dollar-denominated available-for-sale securities due to interest rates. In order to maximize the efficiency of the collars while minimizing cost, we set the strike price on each collar so that the premium paid for the ‘payer leg’ is offset by the premium received for having sold the ‘receiver leg.' Periodically, we may enter into other derivative transactions depending on general economic conditions. Derivative Balance Sheet Classification The tables below summarize the balance sheet classification of our derivative fair value amounts, as well as the gross asset and liability fair value amounts. The fair value amounts presented do not include income accruals. The notional amount of derivative contracts represents the basis upon which pay or receive amounts are calculated and are not reflective of exposure or credit risk. March 31, 2017 December 31, 2016 (In millions) Asset Liability Asset Liability Hedge Designation/ Derivative Notional Fair Value Fair Value Notional Fair Value Fair Value Cash flow hedges: Foreign currency swaps $ 75 $ 0 $ (6 ) $ 75 $ 0 $ (10 ) Total cash flow hedges 75 0 (6 ) 75 0 (10 ) Fair value hedges: Foreign currency forwards 9,705 10 (428 ) 10,965 0 (759 ) Foreign currency options 5,560 5 (4 ) 4,224 2 (32 ) Total fair value hedges 15,265 15 (432 ) 15,189 2 (791 ) Net investment hedge: Foreign currency forwards 236 0 (4 ) 209 5 (2 ) Foreign currency options 924 20 (18 ) 843 41 (17 ) Total net investment hedge 1,160 20 (22 ) 1,052 46 (19 ) Non-qualifying strategies: Foreign currency swaps 5,890 318 (218 ) 6,266 490 (220 ) Foreign currency forwards 11,972 225 (421 ) 21,218 667 (956 ) Foreign currency options 0 0 0 41 0 (2 ) Credit default swaps 89 2 0 86 2 0 Total non-qualifying strategies 17,951 545 (639 ) 27,611 1,159 (1,178 ) Total derivatives $ 34,451 $ 580 $ (1,099 ) $ 43,927 $ 1,207 $ (1,998 ) Balance Sheet Location Other assets $ 14,115 $ 580 $ 0 $ 18,329 $ 1,207 $ 0 Other liabilities 20,336 0 (1,099 ) 25,598 0 (1,998 ) Total derivatives $ 34,451 $ 580 $ (1,099 ) $ 43,927 $ 1,207 $ (1,998 ) Cash Flow Hedges Certain of our consolidated VIEs have foreign currency swaps that qualify for hedge accounting treatment. For those that have qualified, we have designated the derivative as 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 (“cash flow” hedge). We expect to continue this hedging activity for a weighted-average period of approximately nine years. The remaining derivatives in our consolidated VIEs that have not qualified for hedge accounting are included in “non-qualifying strategies.” Fair Value Hedges We designate and account for certain foreign currency forwards and options as fair value hedges when they meet the requirements for hedge accounting. These foreign currency forwards and options hedge the foreign currency exposure of certain U.S. dollar-denominated investments. We recognize gains and losses on these derivatives and the related hedged items in current earnings within derivative and other gains (losses). The change in the fair value of the foreign currency forwards related to the changes in the difference between the spot rate and the forward price is excluded from the assessment of hedge effectiveness. The change in fair value of the foreign currency option related to the time value of the option is excluded from the assessment of hedge effectiveness. We designate and account for interest rate swaptions as fair value hedges when they meet the requirements for hedge accounting. These interest rate swaptions hedge the interest rate exposure of certain U.S. dollar-denominated fixed maturity securities within the investment portfolio of our Aflac Japan segment. We recognize gains and losses on these derivatives and the related hedged items in current earnings within derivative and other gains (losses). The change in the fair value of the interest rate swaptions related to the time value of the option is excluded from the assessment of hedge effectiveness. The following table presents the gains and losses on derivatives and the related hedged items in fair value hedges. Fair Value Hedging Relationships (In millions) Hedging Derivatives Hedged Items Hedging Derivatives Hedged Items Total Gains (Losses) Gains (Losses) Gains (Losses) Ineffectiveness Three Months Ended March 31, 2017: Foreign currency forwards Fixed-maturity and equity securities $ 341 $ (48 ) $ 389 $ (372 ) $ 17 Foreign currency options Fixed-maturity securities 24 13 11 (10 ) 1 Three Months Ended March 31, 2016: Foreign currency forwards Fixed-maturity securities $ 857 $ (44 ) $ 901 $ (882 ) $ 19 Foreign currency options Fixed-maturity securities (1 ) (1 ) 0 0 0 Net Investment Hedge Our investment in Aflac Japan is affected by changes in the yen/dollar exchange rate. To mitigate this exposure, we have designated the Parent Company's yen-denominated liabilities (see Note 8) as non-derivative hedges and designated foreign currency forwards and options as derivative hedges of the foreign currency exposure of our net investment in Aflac Japan. As of March 31, 2017 , we had foreign exchange forwards and options as part of a hedge on 130.1 billion yen of future profit repatriation from Aflac Japan. Our net investment hedge was effective during the three -month periods ended March 31, 2017 and 2016 , respectively. Non-qualifying Strategies For our derivative instruments in consolidated VIEs that do not qualify for hedge accounting treatment, all changes in their fair value are reported in current period earnings within derivative and other gains (losses). The amount of gain or loss recognized in earnings for our VIEs is attributable to the derivatives in those investment structures. While the change in value of the swaps is recorded through current period earnings, the change in value of the available-for-sale fixed-maturity or perpetual securities associated with these swaps is recorded through other comprehensive income. We have cross-currency interest rate swap agreements related to our $550 million senior notes due March 2020, $350 million senior notes due February 2022, $700 million senior notes due June 2023, $750 million senior notes due November 2024, $450 million senior notes due March 2025, and $500 million subordinated debentures due September 2052. Changes in the values of these swaps are recorded through current period earnings. For additional information regarding these swaps, see Note 8 in this report and Note 9 of the Notes to the Consolidated Financial Statements in the 2016 Annual Report. In 2016, we began using foreign exchange forwards to mitigate the currency risk of our U.S. dollar-denominated middle market loan and commercial mortgage loan portfolios held within the Aflac Japan segment. As of March 31, 2017 , the outstanding derivative notional amounts associated with these U.S. dollar-denominated middle market loans and commercial mortgage loans were approximately $198 million and $780 million , respectively. We have not elected to apply hedge accounting for these middle market loans and commercial mortgage loans. The change in fair value of the foreign exchange forwards and the foreign currency remeasurement of the middle market loans and commercial mortgage loans are each recorded through current period earnings, and generally offset each other. Impact of Derivatives and Hedging Instruments The following table summarizes the impact to realized investment gains (losses) and other comprehensive income (loss) from all derivatives and hedging instruments. Three Months Ended March 31, 2017 2016 (In millions) Realized Investment Other (1) Realized Investment Other (1) Qualifying hedges: Cash flow hedges: Foreign currency swaps $ 0 $ 2 $ 0 $ 3 Total cash flow hedges 0 2 0 3 Fair value hedges: Foreign currency forwards (2) (31 ) 0 (25 ) 0 Foreign currency options (2) 14 0 (1 ) 0 Total fair value hedges (17 ) 0 (26 ) 0 Net investment hedge: Non-derivative hedging instruments 0 (17 ) 0 (15 ) Foreign currency forwards 0 (9 ) 0 (50 ) Foreign currency options 0 (23 ) 0 (16 ) Total net investment hedge 0 (49 ) 0 (81 ) Non-qualifying strategies: Foreign currency swaps (8 ) 0 10 0 Foreign currency forwards (27 ) 0 11 0 Credit default swaps 0 0 1 0 Total non-qualifying strategies (35 ) 0 22 0 Total $ (52 ) $ (47 ) $ (4 ) $ (78 ) (1) Cash flow hedge items are recorded as unrealized gains (losses) on derivatives and net investment hedge items are recorded in the unrealized foreign currency translation gains (losses) line in the consolidated statement of comprehensive income (loss). (2) Impact shown net of effect of hedged items (see Fair Value Hedges section of this Note 4 for further detail) We reclassified a de minimis amount from accumulated other comprehensive income (loss) into earnings related to our designated cash flow hedges for the three-month periods ended March 31, 2017 and 2016 . There was no gain or loss reclassified from accumulated other comprehensive income (loss) into earnings related to the net investment hedge for the three-month periods ended March 31, 2017 and 2016. As of March 31, 2017 , deferred gains and losses on derivative instruments recorded in accumulated other comprehensive income that are expected to be reclassified to earnings during the next twelve months were immaterial. Credit Risk Assumed through Derivatives For the foreign currency and credit default swaps associated with our VIE investments for which we are the primary beneficiary, we bear the risk of foreign exchange loss due to counterparty default even though we are not a direct counterparty to those contracts. We are a direct counterparty to the foreign currency swaps that we have entered into in connection with certain of our senior notes and subordinated debentures; foreign currency forwards; foreign currency options; and interest rate swaptions, and therefore we are exposed to credit risk in the event of nonperformance by the counterparties in those contracts. The risk of counterparty default for our VIE swaps, foreign currency swaps, certain foreign currency forwards, foreign currency options and interest rate swaptions is mitigated by collateral posting requirements that counterparties to those transactions must meet. As of March 31, 2017 , there were 16 counterparties to our derivative agreements, with five comprising 67% of the aggregate notional amount. The counterparties to these derivatives are financial institutions with the following credit ratings: March 31, 2017 December 31, 2016 (In millions) Notional Amount Asset Derivatives Liability Derivatives Notional Amount Asset Derivatives Liability Derivatives Counterparties' credit rating: AA $ 6,391 $ 125 $ (172 ) $ 6,844 $ 247 $ (308 ) A 27,619 449 (862 ) 36,019 900 (1,621 ) BBB 441 6 (65 ) 1,064 60 (69 ) Total $ 34,451 $ 580 $ (1,099 ) $ 43,927 $ 1,207 $ (1,998 ) We engage in derivative transactions directly with unaffiliated third parties under International Swaps and Derivatives Association, Inc. (ISDA) agreements and other documentation. Most of the ISDA agreements also include Credit Support Annexes (CSAs) provisions, which generally provide for two-way collateral postings at the first dollar of exposure. We mitigate the risk that counterparties to transactions might be unable to fulfill their contractual obligations by monitoring counterparty credit exposure and collateral value while generally requiring that collateral be posted at the outset of the transaction. In addition, a significant portion of the derivative transactions have provisions that give the counterparty the right to terminate the transaction upon a downgrade of Aflac’s financial strength rating. The actual amount of payments that we could be required to make, depends on market conditions, the fair value of outstanding affected transactions, and other factors prevailing at and after the time of the downgrade. Collateral posted by us to third parties for derivative transactions can generally be repledged or resold by the counterparties. The aggregate fair value of all derivative instruments with credit-risk-related contingent features that were in a net liability position by counterparty was approximately $640 million and $1.2 billion as of March 31, 2017 and December 31, 2016 , respectively. We are generally allowed to sell or repledge collateral obtained from our derivative counterparties, although we do not typically exercise such rights. (See the Offsetting tables below for collateral posted or received as of the reported balance sheet dates.) Offsetting of Financial Instruments and Derivatives Some of the Company's derivative instruments are subject to enforceable master netting arrangements that provide for the net settlement of all derivative contracts between the Parent Company or Aflac and its respective counterparty in the event of default or upon the occurrence of certain termination events. Collateral support agreements with the master netting arrangements generally provide that the Company will receive or pledge financial collateral at the first dollar of exposure. We have securities lending agreements with unaffiliated financial institutions that post collateral to us in return for the use of our fixed maturity securities (see Note 3). When we have entered into securities lending agreements with the same counterparty, the agreements generally provide for net settlement in the event of default by the counterparty. This right of set-off allows us to keep and apply collateral received if the counterparty failed to return the securities borrowed from us as contractually agreed. The tables below summarize our derivatives and securities lending transactions, and as reflected in the tables, in accordance with U.S. GAAP, our policy is to not offset these financial instruments in the Consolidated Balance Sheets. Offsetting of Financial Assets and Derivative Assets March 31, 2017 Gross Amounts Not Offset (In millions) Gross Amount of Recognized Assets Gross Amount Offset in Balance Sheet Net Amount of Assets Presented in Balance Sheet Financial Instruments Securities Collateral Cash Collateral Received Net Amount Derivative assets: Derivative assets subject to a master netting agreement or offsetting arrangement $ 434 $ 0 $ 434 $ (336 ) $ 0 $ (97 ) $ 1 Derivative assets not subject to a master netting agreement or offsetting arrangement 146 146 146 Total derivative assets 580 0 580 (336 ) 0 (97 ) 147 Securities lending and similar arrangements 1,445 0 1,445 0 0 (1,445 ) 0 Total $ 2,025 $ 0 $ 2,025 $ (336 ) $ 0 $ (1,542 ) $ 147 December 31, 2016 Gross Amounts Not Offset (In millions) Gross Amount of Recognized Assets Gross Amount Offset in Balance Sheet Net Amount of Assets Presented in Balance Sheet Financial Instruments Securities Collateral Cash Collateral Received Net Amount Derivative assets: Derivative assets subject to a master netting agreement or offsetting arrangement $ 1,080 $ 0 $ 1,080 $ (698 ) $ 0 $ (382 ) $ 0 Derivative assets not subject to a master netting agreement or offsetting arrangement 127 127 127 Total derivative assets 1,207 0 1,207 (698 ) 0 (382 ) 127 Securities lending and similar arrangements 513 0 513 0 0 (513 ) 0 Total $ 1,720 $ 0 $ 1,720 $ (698 ) $ 0 $ (895 ) $ 127 Offsetting of Financial Liabilities and Derivative Liabilities March 31, 2017 Gross Amounts Not Offset (In millions) Gross Amount of Recognized Liabilities Gross Amount Offset in Balance Sheet Net Amount of Liabilities Presented in Balance Sheet Financial Instruments Securities Collateral Cash Collateral Pledged Net Amount Derivative liabilities: Derivative liabilities subject to a master netting agreement or offsetting arrangement $ (974 ) $ 0 $ (974 ) $ 336 $ 527 $ 23 $ (88 ) Derivative liabilities not subject to a master netting agreement or offsetting arrangement (125 ) (125 ) (125 ) Total derivative liabilities (1,099 ) 0 (1,099 ) 336 527 23 (213 ) Securities lending and similar arrangements (1,482 ) 0 (1,482 ) 1,445 0 0 (37 ) Total $ (2,581 ) $ 0 $ (2,581 ) $ 1,781 $ 527 $ 23 $ (250 ) December 31, 2016 Gross Amounts Not Offset (In millions) Gross Amount of Recognized Liabilities Gross Amount Offset in Balance Sheet Net Amount of Liabilities Presented in Balance Sheet Financial Instruments Securities Collateral Cash Collateral Pledged Net Amount Derivative liabilities: Derivative liabilities subject to a master netting agreement or offsetting arrangement $ (1,852 ) $ 0 $ (1,852 ) $ 698 $ 1,130 $ 21 $ (3 ) Derivative liabilities not subject to a master netting agreement or offsetting arrangement (146 ) (146 ) (146 ) Total derivative liabilities (1,998 ) 0 (1,998 ) 698 1,130 21 (149 ) Securities lending and similar arrangements (526 ) 0 (526 ) 513 0 0 (13 ) Total $ (2,524 ) $ 0 $ (2,524 ) $ 1,211 $ 1,130 $ 21 $ (162 ) For additional information on our financial instruments, see the accompanying Notes 1, 3 and 5 and Notes 1, 3 and 5 of the Notes to the Consolidated Financial Statements in the 2016 Annual Report. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Fair Value Hierarchy U.S. GAAP specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. These two types of inputs create three valuation hierarchy levels. Level 1 valuations reflect quoted market prices for identical assets or liabilities in active markets. Level 2 valuations reflect quoted market prices for similar assets or liabilities in an active market, quoted market prices for identical or similar assets or liabilities in non-active markets or model-derived valuations in which all significant valuation inputs are observable in active markets. Level 3 valuations reflect valuations in which one or more of the significant inputs are not observable in an active market. The following tables present the fair value hierarchy levels of the Company's assets and liabilities that are measured and carried at fair value on a recurring basis. March 31, 2017 (In millions) Quoted Prices in Significant Significant Total Assets: Securities available for sale, carried at Fixed maturities: Government and agencies $ 28,457 $ 863 $ 0 $ 29,320 Municipalities 0 1,322 0 1,322 Mortgage- and asset-backed securities 0 309 195 504 Public utilities 0 7,827 16 7,843 Sovereign and supranational 0 1,386 0 1,386 Banks/financial institutions 0 6,521 24 6,545 Other corporate 0 30,122 35 30,157 Total fixed maturities 28,457 48,350 270 77,077 Perpetual securities: Banks/financial institutions 0 1,551 0 1,551 Other corporate 0 219 0 219 Total perpetual securities 0 1,770 0 1,770 Equity securities 1,339 6 4 1,349 Other assets: Foreign currency swaps 0 174 144 318 Foreign currency forwards 0 235 0 235 Foreign currency options 0 25 0 25 Credit default swaps 0 0 2 2 Total other assets 0 434 146 580 Other investments 141 0 0 141 Cash and cash equivalents 4,205 0 0 4,205 Total assets $ 34,142 $ 50,560 $ 420 $ 85,122 Liabilities: Foreign currency swaps $ 0 $ 99 $ 125 $ 224 Foreign currency forwards 0 853 0 853 Foreign currency options 0 22 0 22 Total liabilities $ 0 $ 974 $ 125 $ 1,099 December 31, 2016 (In millions) Quoted Prices in Significant Significant Total Assets: Securities available for sale, carried at Fixed maturities: Government and agencies $ 25,387 $ 827 $ 0 $ 26,214 Municipalities 0 1,295 0 1,295 Mortgage- and asset-backed securities 0 1,139 198 1,337 Public utilities 0 7,667 16 7,683 Sovereign and supranational 0 1,469 0 1,469 Banks/financial institutions 0 6,038 25 6,063 Other corporate 0 29,699 0 29,699 Total fixed maturities 25,387 48,134 239 73,760 Perpetual securities: Banks/financial institutions 0 1,420 0 1,420 Other corporate 0 213 0 213 Total perpetual securities 0 1,633 0 1,633 Equity securities 1,300 6 3 1,309 Other assets: Foreign currency swaps 0 365 125 490 Foreign currency forwards 0 672 0 672 Foreign currency options 0 43 0 43 Credit default swaps 0 0 2 2 Total other assets 0 1,080 127 1,207 Other investments 276 0 0 276 Cash and cash equivalents 4,859 0 0 4,859 Total assets $ 31,822 $ 50,853 $ 369 $ 83,044 Liabilities: Foreign currency swaps $ 0 $ 84 $ 146 $ 230 Foreign currency forwards 0 1,717 0 1,717 Foreign currency options 0 51 0 51 Total liabilities $ 0 $ 1,852 $ 146 $ 1,998 U.S. GAAP requires disclosure of the fair value of certain financial instruments including those that are not carried at fair value. The carrying amounts for cash and cash equivalents, other investments (excluding loan receivables), receivables, accrued investment income, accounts payable, cash collateral and payables for security transactions approximated their fair values due to the nature of these instruments. Liabilities for future policy benefits and unpaid policy claims are not financial instruments as defined by U.S. GAAP. The following tables present the carrying amount and fair value categorized by fair value hierarchy level for the Company's financial instruments that are not carried at fair value. March 31, 2017 (In millions) Carrying Quoted Prices in Significant Significant Total Assets: Securities held to maturity, Fixed maturities: Government and agencies $ 21,493 $ 26,607 $ 0 $ 0 $ 26,607 Municipalities 363 0 467 0 467 Mortgage and asset-backed 30 0 10 22 32 Public utilities 3,324 0 3,693 0 3,693 Sovereign and 2,702 0 3,009 0 3,009 Banks/financial institutions 3,650 0 3,830 0 3,830 Other corporate 2,839 0 3,285 0 3,285 Other investments (1) 1,309 0 0 1,288 1,288 Total assets $ 35,710 $ 26,607 $ 14,294 $ 1,310 $ 42,211 Liabilities: Other policyholders’ funds $ 6,945 $ 0 $ 0 $ 6,824 $ 6,824 Notes payable 5,230 0 5,226 266 5,492 Total liabilities $ 12,175 $ 0 $ 5,226 $ 7,090 $ 12,316 (1) Excludes policy loans of $197 and equity method investments of $54 , at carrying value December 31, 2016 (In millions) Carrying Quoted Prices in Significant Significant Total Assets: Securities held to maturity, Fixed maturities: Government and agencies $ 20,702 $ 26,040 $ 0 $ 0 $ 26,040 Municipalities 350 0 457 0 457 Mortgage and asset-backed 30 0 10 22 32 Public utilities 3,201 0 3,536 0 3,536 Sovereign and 2,602 0 2,877 0 2,877 Banks/financial institutions 3,731 0 3,900 0 3,900 Other corporate 2,734 0 3,179 0 3,179 Other investments 1,174 0 0 1,142 1,142 Total assets $ 34,524 $ 26,040 $ 13,959 $ 1,164 $ 41,163 Liabilities: Other policyholders’ funds $ 6,659 $ 0 $ 0 $ 6,540 $ 6,540 Notes payable 5,339 0 0 5,530 5,530 Total liabilities $ 11,998 $ 0 $ 0 $ 12,070 $ 12,070 Fair Value of Financial Instruments Fixed maturities, perpetual securities, and equity securities We determine the fair values of our fixed maturity securities, perpetual securities, and public and privately issued equity securities using the following approaches or techniques: price quotes and valuations from third party pricing vendors (including quoted market prices readily available from public exchange markets) and non-binding price quotes we obtain from outside brokers. A third party pricing vendor has developed valuation models to determine fair values of privately issued securities to reflect the impact of the persistent economic environment and the changing regulatory framework. These models are discounted cash flow (DCF) valuation models, but also use information from related markets, specifically the CDS market to estimate expected cash flows. These models take into consideration any unique characteristics of the securities and make various adjustments to arrive at an appropriate issuer-specific loss adjusted credit curve. This credit curve is then used with the relevant recovery rates to estimate expected cash flows and modeling of additional features, including illiquidity adjustments, if necessary, to price the security by discounting those loss adjusted cash flows. In cases where a credit curve cannot be developed from the specific security features, the valuation methodology takes into consideration other market observable inputs, including: 1) the most appropriate comparable security(ies) of the issuer; 2) issuer-specific CDS spreads; 3) bonds or CDS spreads of comparable issuers with similar characteristics such as rating, geography, or sector; or 4) bond indices that are comparative in rating, industry, maturity and region. The pricing data and market quotes we obtain from outside sources, including third party pricing services, are reviewed internally for reasonableness. If a fair value appears unreasonable, we will re-examine the inputs and assess the reasonableness of the pricing data with the vendor. Additionally, we may compare the inputs to relevant market indices and other performance measurements. The output of this analysis is presented to the Company's Valuation and Classification Subcommittee (VCS). Based on the analysis provided to the VCS, the valuation is confirmed or may be revised if there is evidence of a more appropriate estimate of fair value based on available market data. We have performed verification of the inputs and calculations in any valuation models to confirm that the valuations represent reasonable estimates of fair value. The fixed maturities classified as Level 3 consist of securities for which there are limited or no observable valuation inputs. For Level 3 securities, we estimate the fair value of these securities by obtaining non-binding broker quotes from a limited number of brokers. These brokers base their quotes on a combination of their knowledge of the current pricing environment and market conditions. We consider these inputs to be unobservable. We also consider a variety of significant valuation inputs in the valuation process, including forward exchange rates, yen swap rates, dollar swap rates, interest rate volatilities, credit spread data on specific issuers, assumed default and default recovery rates, and certain probability assumptions. In obtaining these valuation inputs, we have determined that certain pricing assumptions and data used by our pricing sources are difficult to validate or corroborate by the market and/or appear to be internally developed rather than observed in or corroborated by the market. The use of these unobservable valuation inputs causes more subjectivity in the valuation process for these securities. For the periods presented, we have not adjusted the quotes or prices we obtain from the pricing services and brokers we use. The following tables present the pricing sources for the fair values of our fixed maturities, perpetual securities, and equity securities. March 31, 2017 (In millions) Quoted Prices in Active Markets for Identical Assets Significant Observable Inputs Significant Unobservable Inputs Total Securities available for sale, carried at fair value: Fixed maturities: Government and agencies: Third party pricing vendor $ 28,457 $ 863 $ 0 $ 29,320 Total government and agencies 28,457 863 0 29,320 Municipalities: Third party pricing vendor 0 1,322 0 1,322 Total municipalities 0 1,322 0 1,322 Mortgage- and asset-backed securities: Third party pricing vendor 0 309 0 309 Broker/other 0 0 195 195 Total mortgage- and asset-backed securities 0 309 195 504 Public utilities: Third party pricing vendor 0 7,827 0 7,827 Broker/other 0 0 16 16 Total public utilities 0 7,827 16 7,843 Sovereign and supranational: Third party pricing vendor 0 1,386 0 1,386 Total sovereign and supranational 0 1,386 0 1,386 Banks/financial institutions: Third party pricing vendor 0 6,521 0 6,521 Broker/other 0 0 24 24 Total banks/financial institutions 0 6,521 24 6,545 Other corporate: Third party pricing vendor 0 30,122 0 30,122 Broker/other 0 0 35 35 Total other corporate 0 30,122 35 30,157 Total fixed maturities 28,457 48,350 270 77,077 Perpetual securities: Banks/financial institutions: Third party pricing vendor 0 1,551 0 1,551 Total banks/financial institutions 0 1,551 0 1,551 Other corporate: Third party pricing vendor 0 219 0 219 Total other corporate 0 219 0 219 Total perpetual securities 0 1,770 0 1,770 Equity securities: Third party pricing vendor 1,339 6 0 1,345 Broker/other 0 0 4 4 Total equity securities 1,339 6 4 1,349 Total securities available for sale $ 29,796 $ 50,126 $ 274 $ 80,196 March 31, 2017 (In millions) Quoted Prices in Active Markets for Identical Assets Significant Observable Inputs Significant Unobservable Inputs Total Securities held to maturity, carried at amortized cost: Fixed maturities: Government and agencies: Third party pricing vendor $ 26,607 $ 0 $ 0 $ 26,607 Total government and agencies 26,607 0 0 26,607 Municipalities: Third party pricing vendor 0 467 0 467 Total municipalities 0 467 0 467 Mortgage- and asset-backed securities: Third party pricing vendor 0 10 0 10 Broker/other 0 0 22 22 Total mortgage- and asset-backed securities 0 10 22 32 Public utilities: Third party pricing vendor 0 3,693 0 3,693 Total public utilities 0 3,693 0 3,693 Sovereign and supranational: Third party pricing vendor 0 3,009 0 3,009 Total sovereign and supranational 0 3,009 0 3,009 Banks/financial institutions: Third party pricing vendor 0 3,830 0 3,830 Total banks/financial institutions 0 3,830 0 3,830 Other corporate: Third party pricing vendor 0 3,285 0 3,285 Total other corporate 0 3,285 0 3,285 Total securities held to maturity $ 26,607 $ 14,294 $ 22 $ 40,923 December 31, 2016 (In millions) Quoted Prices in Active Markets Significant Observable Significant Unobservable Inputs Total Securities available for sale, carried at fair value: Fixed maturities: Government and agencies: Third party pricing vendor $ 25,387 $ 827 $ 0 $ 26,214 Total government and agencies 25,387 827 0 26,214 Municipalities: Third party pricing vendor 0 1,295 0 1,295 Total municipalities 0 1,295 0 1,295 Mortgage- and asset-backed securities: Third party pricing vendor 0 1,139 0 1,139 Broker/other 0 0 198 198 Total mortgage- and asset-backed securities 0 1,139 198 1,337 Public utilities: Third party pricing vendor 0 7,667 0 7,667 Broker/other 0 0 16 16 Total public utilities 0 7,667 16 7,683 Sovereign and supranational: Third party pricing vendor 0 1,469 0 1,469 Total sovereign and supranational 0 1,469 0 1,469 Banks/financial institutions: Third party pricing vendor 0 6,038 0 6,038 Broker/other 0 0 25 25 Total banks/financial institutions 0 6,038 25 6,063 Other corporate: Third party pricing vendor 0 29,699 0 29,699 Total other corporate 0 29,699 0 29,699 Total fixed maturities 25,387 48,134 239 73,760 Perpetual securities: Banks/financial institutions: Third party pricing vendor 0 1,420 0 1,420 Total banks/financial institutions 0 1,420 0 1,420 Other corporate: Third party pricing vendor 0 213 0 213 Total other corporate 0 213 0 213 Total perpetual securities 0 1,633 0 1,633 Equity securities: Third party pricing vendor 1,300 6 0 1,306 Broker/other 0 0 3 3 Total equity securities 1,300 6 3 1,309 Total securities available for sale $ 26,687 $ 49,773 $ 242 $ 76,702 December 31, 2016 (In millions) Quoted Prices in Active Markets Significant Observable Significant Unobservable Inputs Total Securities held to maturity, carried at amortized cost: Fixed maturities: Government and agencies: Third party pricing vendor $ 26,040 $ 0 $ 0 $ 26,040 Total government and agencies 26,040 0 0 26,040 Municipalities: Third party pricing vendor 0 457 0 457 Total municipalities 0 457 0 457 Mortgage- and asset-backed securities: Third party pricing vendor 0 10 0 10 Broker/other 0 0 22 22 Total mortgage- and asset-backed securities 0 10 22 32 Public utilities: Third party pricing vendor 0 3,536 0 3,536 Total public utilities 0 3,536 0 3,536 Sovereign and supranational: Third party pricing vendor 0 2,877 0 2,877 Total sovereign and supranational 0 2,877 0 2,877 Banks/financial institutions: Third party pricing vendor 0 3,900 0 3,900 Total banks/financial institutions 0 3,900 0 3,900 Other corporate: Third party pricing vendor 0 3,179 0 3,179 Total other corporate 0 3,179 0 3,179 Total securities held to maturity $ 26,040 $ 13,959 $ 22 $ 40,021 The following is a discussion of the determination of fair value of our remaining financial instruments. Derivatives We use derivative instruments to manage the risk associated with certain assets. However, the derivative instrument may not be classified in the same fair value hierarchy level as the associated asset. Inputs used to value derivatives include, but are not limited to, interest rates, credit spreads, foreign currency forward and spot rates, and interest volatility. The fair values of the foreign currency forwards, options, and interest rate swaptions associated with certain investments; the foreign currency forwards and options used to hedge foreign exchange risk from our net investment in Aflac Japan and economically hedge certain portions of forecasted cash flows denominated in yen; and the foreign currency swaps associated with certain senior notes and our subordinated debentures are based on the amounts we would expect to receive or pay. The determination of the fair value of these derivatives is based on observable market inputs, therefore they are classified as Level 2. For derivatives associated with VIEs where we are the primary beneficiary, we are not the direct counterparty to the swap contracts. As a result, the fair value measurements incorporate the credit risk of the collateral associated with the VIE. We receive valuations from a third party pricing vendor for these derivatives. Based on an analysis of these derivatives and a review of the methodology employed by the pricing vendor, we determined that due to the long duration of these swaps and the need to extrapolate from short-term observable data to derive and measure long-term inputs, certain inputs, assumptions and judgments are required to value future cash flows that cannot be corroborated by current inputs or current observable market data. As a result, the derivatives associated with our consolidated VIEs are classified as Level 3 of the fair value hierarchy. Loan Receivables Our loan receivables do not have readily determinable market prices and generally lack market liquidity. Fair values for loan receivables are determined based on the present value of expected future cash flows discounted at the applicable U.S. Treasury or London Interbank Offered Rate (LIBOR) yield plus an appropriate spread that considers other risk factors, such as credit and liquidity risk. These spreads are provided by the applicable asset managers based on their knowledge of the current loan pricing environment and market conditions. The spreads are a significant component of the pricing inputs and are generally considered unobservable. Therefore, these investments have been assigned a Level 3 within the fair value hierarchy. Loan receivables are included in other investments on the consolidated balance sheets. Other policyholders' funds The largest component of the other policyholders' funds liability is our annuity line of business in Aflac Japan. Our annuities have fixed benefits and premiums. For this product, we estimated the fair value to be equal to the cash surrender value. This is analogous to the value paid to policyholders on the valuation date if they were to surrender their policy. We periodically check the cash value against discounted cash flow projections for reasonableness. We consider our inputs for this valuation to be unobservable and have accordingly classified this valuation as Level 3. Notes payable As of March 31, 2017, the fair values of our publicly issued notes payable classified as Level 2 were obtained from third party pricing vendors. As of December 31, 2016, the fair values of these notes payable were obtained from a limited number of independent brokers and classified as Level 3 within the fair value hierarchy. We consider this current valuation technique to be an improvement from the previous valuation technique. The fair values of our yen-denominated loans approximate their carrying values. Transfers between Hierarchy Levels and Level 3 Rollforward There were no transfers between Level 1 and 2 for the three -month periods ended March 31, 2017 and 2016 , respectively. The following tables present the changes in fair value of our available-for-sale investments and derivatives classified as Level 3. Three Months Ended Fixed Maturities Equity Derivatives (1) (In millions) Mortgage- Public Banks/ Other Foreign Credit Total Balance, beginning of period $ 198 $ 16 $ 25 $ 0 $ 3 $ (21 ) $ 2 $ 223 Realized investment gains (losses) included in earnings 0 0 0 0 0 38 0 38 Unrealized gains (losses) included in other comprehensive income (loss) 6 0 (1 ) 0 0 2 0 7 Purchases, issuances, sales and settlements: Purchases 0 0 0 35 2 0 0 37 Issuances 0 0 0 0 0 0 0 0 Sales 0 0 0 0 (1 ) 0 0 (1 ) Settlements (9 ) 0 0 0 0 0 0 (9 ) Transfers into Level 3 0 0 0 0 0 0 0 0 Transfers out of Level 3 0 0 0 0 0 0 0 0 Balance, end of period $ 195 $ 16 $ 24 $ 35 $ 4 $ 19 $ 2 $ 295 Changes in unrealized gains (losses) relating $ 0 $ 0 $ 0 $ 0 $ 0 $ 38 $ 0 $ 38 (1) Derivative assets and liabilities are presented net Three Months Ended Fixed Maturities Equity Derivatives (1) (In millions) Mortgage- Public Banks/ Foreign Credit Total Balance, beginning of period $ 220 $ 0 $ 26 $ 3 $ (192 ) $ 1 $ 58 Realized investment gains (losses) included in earnings 0 0 0 0 125 1 126 Unrealized gains (losses) included in other comprehensive income (loss) 21 0 0 0 4 0 25 Purchases, issuances, sales and settlements: Purchases 0 0 0 0 0 0 0 Issuances 0 0 0 0 0 0 0 Sales 0 0 0 0 0 0 0 Settlements (4 ) 0 0 0 0 0 (4 ) Transfers into Level 3 0 0 0 0 0 0 0 Transfers out of Level 3 0 0 0 0 0 0 0 Balance, end of period $ 237 $ 0 $ 26 $ 3 $ (63 ) $ 2 $ 205 Changes in unrealized gains (losses) relating $ 0 $ 0 $ 0 $ 0 $ 125 $ 1 $ 126 (1) Derivative assets and liabilities are presented net Fair Value Sensitivity Level 3 Significant Unobservable Input Sensitivity The following tables summarize the significant unobservable inputs used in the valuation of our Level 3 available-for-sale investments and derivatives. Included in the tables are the inputs or range of possible inputs that have an effect on the overall valuation of the financial instruments. March 31, 2017 (In millions) Fair Value Valuation Technique(s) Unobservable Input Range Assets: Securities available for sale, carried at fair value: Fixed maturities: Mortgage- and asset-backed securities $ 195 Consensus pricing Offered quotes N/A (d) Public utilities 16 Discounted cash flow Historical volatility N/A (d) Banks/financial institutions 24 Consensus pricing Offered quotes N/A (d) Other corporate 35 Discounted cash flow Historical volatility N/A (e) Equity securities 4 Net asset value Offered quotes $1 - $728 ($8) Other assets: Foreign currency swaps 25 Discounted cash flow Interest rates (USD) 2.18% - 2.45% (a) Interest rates (JPY) .20% - .73% (b) CDS spreads 11 - 147 bps Foreign exchange rates 21.34% (c) 50 Discounted cash flow Interest rates (USD) 2.18% - 2.45% (a) Interest rates (JPY) .20% - .73% (b) CDS spreads 10 - 79 bps 69 Discounted cash flow Interest rates (USD) 2.18% - 2.45% (a) Interest rates (JPY) .20% - .73% (b) Foreign exchange rates 21.34% (c) Credit default swaps 2 Discounted cash flow Base correlation 61.55% - 66.55% (e) CDS spreads 48 bps Recovery rate 36.69% Total assets $ 420 (a) Inputs derived from U.S. long-term rates to accommodate long maturity nature of our swaps (b) Inputs derived from Japan long-term rates to accommodate long maturity nature of our swaps (c) Based on 10 year volatility of JPY/USD exchange rate (d) N/A represents securities where we receive unadjusted broker quotes and for which there is no transparency into the providers' valuation techniques or unobservable inputs. (e) Range of base correlation for our bespoke tranche for attachment and detachment points corresponding to market indices. March 31, 2017 (In millions) Fair Value Valuation Technique(s) Unobservable Input Range Liabilities: Foreign currency swaps $ 106 Discounted cash flow Interest rates (USD) 2.18% - 2.45% (a) Interest rates (JPY) .20% - .73% (b) CDS spreads 11 - 147 bps Foreign exchange rates 21.34% (c) 13 Discounted cash flow Interest rates (USD) 2.18% - 2.45% (a) Interest rates (JPY) .20% - .73% (b) CDS spreads 15 - 168 bps 6 Discounted cash flow Interest rates (USD) 2.18% - 2.45% (a) Interest rates (JPY) .20% - .73% (b) Foreign exchange rates 21.34% (c) Total liabilities $ 125 (a) Inputs derived from U.S. long-term rates to accommodate long maturity nature of our swaps (b) Inputs derived from Japan long-term rates to accommodate long maturity nature of our swaps (c) Based on 10 year volatility of JPY/USD exchange rate December 31, 2016 (In millions) Fair Value Valuation Technique(s) Unobservable Input Range Assets: Securities available for sale, carried at fair value: Fixed maturities: Mortgage- and asset-backed securities $ 198 Consensus pricing Offered quotes N/A (d) Public utilities 16 Discounted cash flow Historical volatility N/A (d) Banks/financial institutions 25 Consensus pricing Offered quotes N/A (d) Equity securities 3 Net asset value Offered quotes $1-$701 ($8) Other assets: Foreign currency swaps 16 Discounted cash flow Interest rates (USD) 2.34% - 2.59% (a) Interest rates (JPY) .22% - .80% (b) CDS spreads 17 - 172 bps Foreign exchange rates 21.47% (c) 29 Discounted cash flow Interest rates (USD) 2.34% - 2.59% (a) Interest rates (JPY) .22% - .80% (b) CDS spreads 16 - 88 bps 80 Discounted cash flow Interest rates (USD) 2.34% - 2.59% (a) Interest rates (JPY) .22% - .80% (b) Foreign exchange rates 21.47% (c) Credit default swaps 2 Discounted cash flow Base correlation 52.18% - 56.07% (e) CDS spreads 54 bps Recovery rate 36.69% Total assets $ 369 (a) Inputs derived from U.S. long-term rates to accommodate long maturity nature of our swaps (b) Inputs derived from Japan long-term rates to accommodate long maturity nature of our swaps (c) Based on 10 year volatility of JPY/USD exchange rate (d) N/A represents securities where we receive unadjusted broker quotes and for which there is no transparency into the providers' valuation techniques or unobservable inputs. (e) Range of base correlation for our bespoke tranche for attachment and detachment points corresponding to market indices December 31, 2016 (In millions) Fair Value Valuation Technique(s) Unobservable Input Range Liabilities: Foreign currency swaps $ 113 Discounted cash flow Interest rates (USD) 2.34% - 2.59% (a) Interest rates (JPY) .22% - .80% (b) CDS spreads 17 - 172 bps Foreign exchange rates 21.47% (c) 23 Discounted cash flow Interest rates (USD) 2.34% - 2.59% (a) Interest rates (JPY) .22% - .80% (b) CDS spreads 24 - 216 bps 10 Discounted cash flow Interest rates (USD) 2.34% - 2.59% (a) Interest rates (JPY) .22% - .80% (b) Foreign exchange rates 21.47% (c) Total liabilities $ 146 (a) Inputs derived from U.S. long-term rates to accommodate long maturity nature of our swaps (b) Inputs derived from Japan long-term rates to accommodate long maturity nature of our swaps (c) Based on 10 year volatility of JPY/USD exchange rate The following is a discussion of the significant unobservable inputs or valuation techniques used in determining the fair value of securities and derivatives classified as Level 3. Net Asset Value We hold certain unlisted equity securities whose fair value is derived based on the financial statements published by the investee. These securities do not trade on an active market and the valuations derived are dependent on the availability of timely financial reporting of the investee. Net asset value is an unobservable input in the determination of fair value of equity securities. Offered Quotes In circumstances where our valuation model price is overridden because it implies a value that is not consistent with current market conditions, we will solicit bids from a limited number of brokers. We also receive unadjusted prices from brokers for our mortgage and asset-backed securities. These quotes are non-binding but are reflective of valuation best estimates at that particular point in time. Offered quotes are an unobservable input in the determination of fair value of mortgage- and asset-backed securities, certain banks/financial institutions, certain other corporate, and equity securities investments. Interest Rates, CDS Spreads, Foreign Exchange Rates The significant drivers of the valuation of the interest and foreign exchange swaps are interest rates, foreign exchange rates and CDS spreads. Our swaps have long maturities that increase the sensitivity of the swaps to interest rate fluctuations. Since most of our yen-denominated cross currency swaps are in a net liability position, an increase in interest rates will decrease the liabilities and increase the value of the swap. Foreign exchange swaps also have a lump-sum final settlement of foreign exchange principal receivables at the termination of the swap. An increase in yen interest rates will decrease the value of the final settlement foreign exchange receivables and decrease the value of the swap, and an increase in U.S. dollar interest rates will increase the swap value. A similar sensitivity pattern is observed for the foreign exchange rates. When the spot U.S. dollar/Japanese yen (USD/JPY) foreign exchange rate decreases and the swap is receiving a final exchange payment in JPY, the swap value will increase due to the appreciation of the JPY. Most of our swaps are designed to receive payments in JPY at the termination and will thus be impacted by the USD/JPY foreign exchange rate in this way. In cases where there is no final foreign exchange receivable in JPY and we are paying JPY as interest payments and receiving USD, a decrease in the foreign exchange rate will lead to a decrease in the swap value. The extinguisher feature in most of our swaps results in a cessation of cash flows and no further payments between the parties to the swap in the event of a default on the referenced or underlying collateral. To price this feature, we apply the survival probability of the referenced entity to the projected cash flows. The survival probability uses the CDS spreads and recovery rates to adjust the present value of the cash flows. For extinguisher swaps with positive values, an increase in CDS spreads decreases the likelihood of receiving the final exchange payments and reduces the value of the swap. Due to the long duration of these swaps and the need to extrapolate from short-term observable data to derive and measure long-term inputs, certain inputs, assumptions and judgments are required to value future cash flows that cannot be corroborated by current inputs or current observable market data. Interest rates, CDS spreads, and foreign exchange rates are unobservable inputs in the determination of fair value of foreign currency swaps. Base Correlations, CDS Spreads, Recovery Rates Our remaining collateralized debt obligation (CDO) is a tranche on a basket of single-name credit default swaps. The risk in this synthetic CDO comes from the single-name CDS risk and the correlations between the single names. The valuation of synthetic CDOs is dependent on the calibration of market prices for interest rates, single name CDS default probabilities and base correlation using financial modeling tools. Since there is limited or no observable data available for this tranche, the base correlations must be obtained from commonly traded market tranches such as the CDX and iTraxx indices. From the historical prices of these indices, base correlations can be obtained to develop a pricing curve of CDOs with different seniorities. Since the reference entities of the market indices do not match those in the portfolio underlying the synthetic CDO to be valued, several processing steps are taken to map the CDO in our portfolio to the indices. With the base correlation determined and the appropriate spreads selected, a valuation is calculated. An increase in the CDS spreads in the underlying portfolio leads to a decrease in the value due to higher probability of defaults and losses. The impact on the valuation due to base correlation depends on a number of factors, including the riskiness between market tranches and the modeled tranche based on our portfolio and the equivalence between detachment points in these tranches. Generally speaking, an increase in base correlation will decrease the value of the senior tranches while increasing the value of junior tranches. This may result in a positive or negative value change. The CDO tranche in our portfolio is a senior mezzanine tranche and, due to the low level of credit support for this type of tranche, exhibits equity-like behavior. As a result, an increase in recovery rates tends to cause its value to decrease. Base correlations, CDS spreads, and recovery rates are unobservable inputs in the determination of fair value of credit default swaps. For additional information on our investments and financial instruments, see the accompanying Notes 1, 3 and 4 and Notes 1, 3 and 4 of the Notes to the Consolidated Financial Statements in the 2016 Annual Report. |
POLICY LIABILITIES
POLICY LIABILITIES | 3 Months Ended |
Mar. 31, 2017 | |
Insurance Loss Reserves [Abstract] | |
POLICY LIABILITIES | POLICY LIABILITIES Changes in the liability for unpaid policy claims were as follows for the three -month periods ended March 31: (In millions) 2017 2016 Unpaid supplemental health claims, beginning of year $ 3,707 $ 3,548 Less reinsurance recoverables 27 26 Net balance, beginning of year 3,680 3,522 Add claims incurred during the year related to: Current year 1,737 1,705 Prior years (111 ) (142 ) Total incurred 1,626 1,563 Less claims paid during the year on claims incurred during: Current year 505 493 Prior years 1,055 1,046 Total paid 1,560 1,539 Effect of foreign exchange rate changes on unpaid claims 80 136 Net balance, end of period 3,826 3,682 Add reinsurance recoverables 29 28 Unpaid supplemental health claims, end of period 3,855 3,710 Unpaid life claims, end of period 375 280 Total liability for unpaid policy claims $ 4,230 $ 3,990 The incurred claims development related to prior years reflects favorable claims experience compared to previous estimates, primarily in our lines of business in Japan. |
REINSURANCE
REINSURANCE | 3 Months Ended |
Mar. 31, 2017 | |
Reinsurance Disclosures [Abstract] | |
REINSURANCE | REINSURANCE We enter into fixed quota-share coinsurance agreements with other companies in the normal course of business. For each of our reinsurance agreements, we determine whether the agreement provides indemnification against loss or liability relating to insurance risk in accordance with applicable accounting standards. Reinsurance premiums and benefits paid or provided are accounted for on bases consistent with those used in accounting for the original policies issued and the terms of the reinsurance contracts. Premiums and benefits are reported net of insurance ceded. We have recorded a deferred profit liability related to reinsurance transactions. The remaining deferred profit liability of $919 million , as of March 31, 2017 , included in future policy benefits in the consolidated balance sheet, is being amortized into income over the expected lives of the policies. We also have recorded a reinsurance recoverable for reinsurance transactions, which is included in other assets in the consolidated balance sheet and had a remaining balance of $900 million and $860 million as of March 31, 2017 and December 31, 2016 , respectively. The increase in the reinsurance recoverable balance was driven by two aggregating factors: yen strengthening and the growth in reserves related to the business that has been reinsured as the policies age. The spot yen/dollar exchange rate strengthened by approximately 4% and ceded reserves increased approximately 1% from December 31, 2016 to March 31, 2017 . The following table reconciles direct premium income and direct benefits and claims to net amounts after the effect of reinsurance. Three Months Ended (In millions) 2017 2016 Direct premium income $ 4,724 $ 4,690 Ceded to other companies: Ceded Aflac Japan closed blocks (130 ) (134 ) Other (12 ) (12 ) Assumed from other companies: Retrocession activities 54 56 Other 2 2 Net premium income $ 4,638 $ 4,602 Direct benefits and claims $ 3,129 $ 3,103 Ceded benefits and change in reserves for future benefits: Ceded Aflac Japan closed blocks (122 ) (121 ) Eliminations 13 14 Other (11 ) (10 ) Assumed from other companies: Retrocession activities 54 53 Eliminations (13 ) (14 ) Other 2 0 Benefits and claims, net $ 3,052 $ 3,025 These reinsurance transactions are indemnity reinsurance that do not relieve us from our obligations to policyholders. In the event that the reinsurer is unable to meet their obligations, we remain liable for the reinsured claims. As a part of our capital contingency plan, we entered into a committed reinsurance facility agreement on December 1, 2015 in the amount of approximately 110 billion yen. This reinsurance facility agreement was renewed in 2016 and is effective until December 31, 2017. There are also additional commitment periods of a one-year duration each which are automatically extended unless notification is received from the reinsurer within 60 days prior to the expiration. The reinsurer can withdraw from the committed facility if Aflac‘s Standard and Poor's (S&P) rating drops below BBB-. As of March 31, 2017 , we have not executed a reinsurance treaty under this committed reinsurance facility. |
NOTES PAYABLE
NOTES PAYABLE | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
NOTES PAYABLE | NOTES PAYABLE A summary of notes payable follows: (In millions) March 31, 2017 December 31, 2016 2.65% senior notes paid February 2017 $ 0 $ 649 2.40% senior notes due March 2020 545 547 4.00% senior notes due February 2022 346 348 3.625% senior notes due June 2023 693 696 3.625% senior notes due November 2024 742 745 3.25% senior notes due March 2025 444 445 2.875% senior notes due October 2026 298 298 6.90% senior notes due December 2039 221 220 6.45% senior notes due August 2040 255 254 4.00% senior notes due October 2046 394 394 5.50% subordinated debentures due September 2052 495 486 Yen-denominated senior notes: .932% senior notes due January 2027 (principal amount 60.0 billion yen) 531 0 Yen-denominated loans: Variable interest rate loan due September 2021 (.31% in 2017 and 2016, principal amount 5.0 billion yen) 44 43 Variable interest rate loan due September 2023 (.46% in 2017 and 2016, principal amount 25.0 billion yen) 222 214 Capitalized lease obligations payable through 2024 20 21 Total notes payable $ 5,250 $ 5,360 Amounts in the table above are reported net of debt issuance costs and issuance premiums or discounts, if applicable, that are being amortized over the life of the notes. In January 2017, the Parent Company issued 60.0 billion yen of senior notes through a U.S. public debt offering. The notes bear interest at a fixed rate of .932% per annum, payable semi-annually, and have a 10 -year maturity. These notes may only be redeemed before maturity, in whole but not in part, upon the occurrence of certain changes affecting U.S. taxation, as specified in the indenture governing the terms of the issuance. In February 2017, the Parent Company extinguished $650 million of 2.65% senior notes upon their maturity. The Parent Company and Aflac have a 364 -day uncommitted bilateral line of credit with a third party that provides for borrowings in the amount of $100 million . Borrowings will bear interest at the rate quoted by the bank and agreed upon at the time of making such loan and will have up to a three-month maturity period. There are no related facility fees, upfront expenses or financial covenant requirements. Borrowings under this credit agreement may be used for general corporate purposes. Borrowings under the financing agreement will mature no later than three months after the last drawdown date of October 14, 2017. As of March 31, 2017 , we did not have any borrowings outstanding under our $100 million credit agreement. The Parent Company has a three -year senior unsecured revolving credit facility agreement with a syndicate of financial institutions that provides for borrowings of up to 100.0 billion yen on a revolving basis. Borrowings bear interest at a rate per annum equal to the Tokyo interbank market rate (TIBOR) plus, at our option, either (a) the applicable TIBOR margin during the period from the closing date to the commitment termination date or (b) the applicable TIBOR margin during the term out period. The applicable margin ranges between .35% and .75% during the period from the closing date to the commitment termination date and .70% and 1.50% during the term out period, depending on the Parent Company’s debt ratings as of the date of determination. In addition, the Parent Company is required to pay a facility fee on the commitments ranging between .30% and .50% , also based on the Parent Company’s debt ratings as of the date of determination. Borrowings under this credit agreement may be used for general corporate purposes, including a capital contingency plan for the operations of the Parent Company, and will expire on the earlier of (a) March 31, 2019, or (b) the date the commitments are terminated pursuant to an event of default, as such term is defined in the credit agreement. The credit facility requires compliance with certain financial covenants on a quarterly basis. As of March 31, 2017 , we did not have any borrowings outstanding under our 100.0 billion yen revolving credit agreement. The Parent Company and Aflac have a five -year senior unsecured revolving credit facility agreement with a syndicate of financial institutions that provides for borrowings of up to 55.0 billion yen or the equivalent of yen in U.S. dollars on a revolving basis. This credit agreement provides for borrowings in Japanese yen or the equivalent of Japanese yen in U.S. dollars on a revolving basis. Borrowings bear interest at a rate per annum equal to, at our option, either (a) a eurocurrency rate determined by reference to the LIBOR for the interest period relevant to such borrowing adjusted for certain additional costs or (b) a base rate determined by reference to the highest of (1) the federal funds effective rate plus ½ of 1%, (2) the rate of interest for such day announced by Mizuho Bank, Ltd. as its prime rate and (3) the eurocurrency rate for an interest period of one month plus 1.00%, in each case plus an applicable margin. The applicable margin ranges between .79% and 1.275% for eurocurrency rate borrowings and 0.0% and .275% for base rate borrowings, depending on the Parent Company’s debt ratings as of the date of determination. In addition, the Parent Company and Aflac are required to pay a facility fee on the commitments ranging between .085% and .225% , also based on the Parent Company’s debt ratings as of the date of determination. Borrowings under the amended and restated credit facility may be used for general corporate purposes, including a capital contingency plan for the operations of the Parent Company and Aflac. The amended and restated credit facility requires compliance with certain financial covenants on a quarterly basis and will expire on the earlier of (a) September 18, 2020, or (b) the date the commitments are terminated pursuant to an event of default, as such term is defined in the credit agreement. As of March 31, 2017 , we did not have any borrowings outstanding under our 55.0 billion yen revolving credit agreement. The Parent Company and Aflac have an uncommitted bilateral line of credit with a third party that provides for borrowings in the amount of $50 million . Borrowings will bear interest at the rate quoted by the bank and agreed upon at the time of making such loan and will have up to a three-month maturity period. There are no related facility fees, upfront expenses or financial covenant requirements. Borrowings under this credit agreement may be used for general corporate purposes. As of March 31, 2017 , we did not have any borrowings outstanding under our $50 million credit agreement. We were in compliance with all of the covenants of our notes payable and lines of credit at March 31, 2017 . No events of default or defaults occurred during the three -month period ended March 31, 2017 . For additional information, see Notes 4 and 9 of the Notes to the Consolidated Financial Statements in the 2016 Annual Report. |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 3 Months Ended |
Mar. 31, 2017 | |
Stockholders' Equity Note [Abstract] | |
SHAREHOLDERS' EQUITY | SHAREHOLDERS’ EQUITY The following table is a reconciliation of the number of shares of the Company's common stock for the three -month periods ended March 31 . (In thousands of shares) 2017 2016 Common stock - issued: Balance, beginning of period 671,249 669,723 Exercise of stock options and issuance of restricted shares 434 678 Balance, end of period 671,683 670,401 Treasury stock: Balance, beginning of period 265,439 245,343 Purchases of treasury stock: Open market 8,493 10,152 Other 144 189 Dispositions of treasury stock: Shares issued to AFL Stock Plan (247 ) (311 ) Exercise of stock options (128 ) (64 ) Other (20 ) (111 ) Balance, end of period 273,681 255,198 Shares outstanding, end of period 398,002 415,203 Outstanding share-based awards are excluded from the calculation of weighted-average shares used in the computation of basic earnings per share (EPS). The following table presents the approximate number of share-based awards to purchase shares, on a weighted-average basis, that were considered to be anti-dilutive and were excluded from the calculation of diluted earnings per share for the following periods. Three Months Ended (In thousands) 2017 2016 Anti-dilutive share-based awards 321 2,682 Share Repurchase Program During the first three months of 2017 , we repurchased 8.5 million shares of our common stock in the open market for $600 million as part of our share repurchase program. During the first three months of 2016 , we repurchased 10.2 million shares of our common stock in the open market for $600 million as part of our share repurchase program. As of March 31, 2017 , a remaining balance of 18.3 million shares of our common stock was available for purchase under share repurchase authorizations by our board of directors. Reclassifications from Accumulated Other Comprehensive Income The tables below are reconciliations of accumulated other comprehensive income by component for the following periods. Changes in Accumulated Other Comprehensive Income Three Months Ended (In millions) Unrealized Foreign Unrealized Unrealized Pension Liability Adjustment Total Balance, beginning of period $ (1,983 ) $ 4,805 $ (24 ) $ (168 ) $ 2,630 Other comprehensive 333 (341 ) 2 (4 ) (10 ) Amounts reclassified from 0 10 0 2 12 Net current-period other 333 (331 ) 2 (2 ) 2 Balance, end of period $ (1,650 ) $ 4,474 $ (22 ) $ (170 ) $ 2,632 All amounts in the table above are net of tax. Three Months Ended (In millions) Unrealized Foreign Unrealized Unrealized Pension Liability Adjustment Total Balance, beginning of period $ (2,196 ) $ 2,986 $ (26 ) $ (139 ) $ 625 Other comprehensive 612 1,748 2 (1 ) 2,361 Amounts reclassified from 0 (50 ) 0 0 (50 ) Net current-period other 612 1,698 2 (1 ) 2,311 Balance, end of period $ (1,584 ) $ 4,684 $ (24 ) $ (140 ) $ 2,936 All amounts in the table above are net of tax. The tables below summarize the amounts reclassified from each component of accumulated other comprehensive income based on source for the following periods. Reclassifications Out of Accumulated Other Comprehensive Income (In millions) Three Months Ended Details about Accumulated Other Comprehensive Income Components Amount Reclassified from Accumulated Other Comprehensive Income Affected Line Item in the Unrealized gains (losses) on available-for-sale $ (6 ) Sales and redemptions (10 ) Other-than-temporary impairment (16 ) Total before tax 6 Tax (expense) or benefit (1) $ (10 ) Net of tax Amortization of defined benefit pension items: Actuarial gains (losses) $ (3 ) Acquisition and operating expenses (2) Prior service (cost) credit 0 Acquisition and operating expenses (2) 1 Tax (expense) or benefit (1) $ (2 ) Net of tax Total reclassifications for the period $ (12 ) Net of tax (1) Based on 35% tax rate (2) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 11 for additional details). (In millions) Three Months Ended Details about Accumulated Other Comprehensive Income Components Amount Reclassified from Accumulated Other Comprehensive Income Affected Line Item in the Unrealized gains (losses) on available-for-sale $ 91 Sales and redemptions (14 ) Other-than-temporary impairment 77 Total before tax (27 ) Tax (expense) or benefit (1) $ 50 Net of tax Amortization of defined benefit pension items: Actuarial gains (losses) $ (3 ) Acquisition and operating expenses (2) Prior service (cost) credit 3 Acquisition and operating expenses (2) 0 Tax (expense) or benefit (1) $ 0 Net of tax Total reclassifications for the period $ 50 Net of tax (1) Based on 35% tax rate (2) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 11 for additional details). |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 3 Months Ended |
Mar. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
SHARE-BASED COMPENSATION | SHARE-BASED COMPENSATION As of March 31, 2017 , the Company has outstanding share-based awards under the Aflac Incorporated 2004 Long-Term Incentive Plan (as Amended and Restated March 14, 2012) (the “2004 Plan”). Share-based awards are designed to reward employees for their long-term contributions to the Company and provide incentives for them to remain with the Company. The number and frequency of share-based awards are based on competitive practices, operating results of the Company, government regulations, and other factors. The 2004 Plan, as amended on March 14, 2012, allows for a maximum number of shares issuable over its term of 25 million shares including 12 million shares that may be awarded in respect of awards other than options or stock appreciation rights. If any awards granted under the 2004 Plan are forfeited or are terminated before being exercised or settled for any reason other than tax forfeiture, then the shares underlying the awards will again be available under the 2004 Plan. The 2004 Plan allows awards to Company employees for incentive stock options (ISOs), non-qualifying stock options (NQSOs), restricted stock, restricted stock units, and stock appreciation rights. Non-employee directors are eligible for grants of NQSOs, restricted stock, and stock appreciation rights. As of March 31, 2017, approximately 8.0 million shares were available for future grants under this plan. The ISOs and NQSOs have a term of 10 years, and the share-based awards generally vest upon time-based conditions or time and performance-based conditions. Time-based vesting generally occurs after three years. Performance-based vesting conditions generally include the attainment of goals related to Company financial performance. As of March 31, 2017 , the only performance-based awards issued and outstanding were restricted stock awards. Stock options and stock appreciation rights granted under the amended 2004 Plan have an exercise price of at least 100% of the fair market value of the underlying stock on the grant date and have an expiration date no later than 10 years from the grant date. Time-based restricted stock awards, restricted stock units and stock options granted after January 1, 2017 vest on a ratable basis over three years, and awards granted prior to the amendment vest on a three -year cliff basis. The Compensation Committee of the Board of Directors has the discretion to determine vesting schedules . Share-based awards granted to U.S.-based grantees are settled with authorized but unissued Company stock, while those issued to Japan-based grantees are settled with treasury shares. The following table provides information on stock options outstanding and exercisable at March 31, 2017 . Stock Weighted-Average Aggregate Weighted-Average Outstanding 6,245 4.9 $ 119 $ 53.38 Exercisable 4,504 3.4 102 49.72 We received cash from the exercise of stock options in the amount of $17 million during the first three months of 2017, compared with $10 million in the first three months of 2016. The tax benefit realized as a result of stock option exercises and restricted stock releases was $14 million in the first three months of 2017, compared with $13 million in the first three months of 2016. As of March 31, 2017, total compensation cost not yet recognized in our financial statements related to restricted stock awards was $62 million , of which $29 million ( 973 thousand shares) was related to restricted stock awards with a performance-based vesting condition. We expect to recognize these amounts over a weighted-average period of approximately 1.7 years. There are no other contractual terms covering restricted stock awards once vested. The following table summarizes restricted stock activity during the three -month period ended March 31 . (In thousands of shares) Shares Weighted-Average Grant-Date Fair Value Per Share Restricted stock at December 31, 2016 1,868 $ 61.76 Granted in 2017 489 71.97 Canceled in 2017 (4 ) 65.05 Vested in 2017 (437 ) 62.23 Restricted stock at March 31, 2017 1,916 $ 64.12 In February 2017, the Company granted 253 thousand performance-based stock awards, which are contingent on the achievement of the Company's financial performance metrics and its market-based conditions. On the date of grant, the Company estimated the fair value of restricted stock awards with market-based conditions using a Monte Carlo simulation model. The model discounts the value of the stock at the assumed vesting date based on the risk-free interest rate. Based on estimates of actual performance versus the vesting thresholds, the calculated fair value percentage pay-out estimate will be updated each quarter. The Company uses third-party analyses to assist in developing the assumptions used in, as well as calibrating, a Monte Carlo simulation model. The Company is responsible for determining the assumptions used in estimating the fair value of its share-based payment awards. On January 1, 2017, we adopted accounting guidance related to employee share-based payment accounting, which requires an entity to elect whether to use estimates of forfeitures, or to account for forfeitures as they occur, using modified retrospective application. We have made an entity-wide accounting policy election to estimate the number of awards that are expected to vest (consistent with our prior policy). The election and adoption of this guidance did not have a significant impact on our financial position, results of operations, or disclosures. For additional information on our long-term share-based compensation plans and the types of share-based awards, see Note 12 of the Notes to the Consolidated Financial Statements included in the 2016 Annual Report. |
BENEFIT PLANS
BENEFIT PLANS | 3 Months Ended |
Mar. 31, 2017 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
BENEFIT PLANS | BENEFIT PLANS We have funded defined benefit plans in Japan and the United States, however the U.S. plan was frozen to new participants effective October 1, 2013. We also maintain non-qualified, unfunded supplemental retirement plans that provide defined pension benefits in excess of limits imposed by federal tax law for certain Japanese, U.S. and former employees, however the U.S. plan was frozen to new participants effective January 1, 2015. U.S. employees who are not participants in the defined benefit plan receive a nonelective 401(k) employer contribution. We provide certain health care benefits for eligible U.S. retired employees, their beneficiaries and covered dependents ("other postretirement benefits"). The health care plan is contributory and unfunded. Effective January 1, 2014, employees eligible for benefits included the following: (1) active employees whose age plus service, in years, equaled or exceeded 80 (rule of 80 ); (2) active employees who were age 55 or older and have met the 15 years of service requirement; (3) active employees who would meet the rule of 80 in the next five years ; (4) active employees who were age 55 or older and who would meet the 15 years of service requirement within the next five years ; and (5) current retirees. For certain employees and former employees, additional coverage is provided for all medical expenses for life. Pension and other postretirement benefit expenses, included in acquisition and operating expenses in the consolidated statement of earnings, included the following components: Three Months Ended March 31, Pension Benefits Other Japan U.S. Postretirement Benefits (In millions) 2017 2016 2017 2016 2017 2016 Components of net periodic Service cost $ 5 $ 4 $ 6 $ 6 $ 0 $ 0 Interest cost 1 2 8 8 0 0 Expected return on plan (1 ) (1 ) (6 ) (6 ) 0 0 Amortization of net actuarial 0 0 3 3 0 0 Amortization of prior service 0 0 0 0 0 (3 ) Net periodic (benefit) cost $ 5 $ 5 $ 11 $ 11 $ 0 $ (3 ) During the three months ended March 31, 2017 , Aflac Japan contributed approximately $6 million (using the weighted-average yen/dollar exchange rate for the three -month period ending March 31, 2017 ) to the Japanese funded defined benefit plan, and Aflac U.S. did not make a contribution to the U.S. funded defined benefit plan. For additional information regarding our Japanese and U.S. benefit plans, see Note 14 of the Notes to the Consolidated Financial Statements in the 2016 Annual Report. |
COMMITMENTS AND CONTINGENT LIAB
COMMITMENTS AND CONTINGENT LIABILITIES | 3 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENT LIABILITIES | COMMITMENTS AND CONTINGENT LIABILITIES We are a defendant in various lawsuits considered to be in the normal course of business. Members of our senior legal and financial management teams review litigation on a quarterly and annual basis. The final results of any litigation cannot be predicted with certainty. Although some of this litigation is pending in states where large punitive damages, bearing little relation to the actual damages sustained by plaintiffs, have been awarded in recent years, we believe the outcome of pending litigation will not have a material adverse effect on our financial position, results of operations, or cash flows. See Note 3 of the Notes to the Consolidated Financial Statements for details on investment commitments. Guaranty Fund Assessments The United States insurance industry has a policyholder protection system that is monitored and regulated by state insurance departments. These life and health insurance guaranty associations are state entities (in all 50 states as well as Puerto Rico and the District of Columbia) created to protect policyholders of an insolvent insurance company. All insurance companies (with limited exceptions) licensed to sell life or health insurance in a state must be members of that state’s guaranty association. Under state guaranty association laws, certain insurance companies can be assessed (up to prescribed limits) for certain obligations to the policyholders and claimants of impaired or insolvent insurance companies that write the same line or similar lines of business. In 2009, the Pennsylvania Insurance Commissioner placed long-term care insurer Penn Treaty Network America Insurance Company and its subsidiary American Network Insurance Company (collectively referred to as Penn Treaty), neither of which is affiliated with Aflac, in rehabilitation and petitioned a state court for approval to liquidate Penn Treaty. A final order of liquidation was granted by a recognized judicial authority on March 1, 2017, and as a result, Penn Treaty is in the process of liquidation. We have estimated and recognized the impact of our share of guaranty fund assessments resulting from the liquidation using a discounted rate of 4.25% . We have recognized a discounted liability for the assessments of $62 million (undiscounted $94 million ), offset by discounted premium tax credits of $48 million (undiscounted $74 million ), for a net $14 million impact to net income as of March 31, 2017. We expect a majority of these assessments to be paid over the next year and a majority of the tax credits to be realized over the next five years. We use the most current cost estimate provided by the National Organization of Life and Health Guaranty Associations (NOLHGA) to calculate our estimated assessments and tax credits. To the extent Medicare part D related premiums are included in the industry premiums within the latest NOLHGA annual report, our assessments estimate will increase. Since this information is not available at this time, we cannot at this time estimate the extent of the increase, if any. |
SUMMARY OF SIGNIFICANT ACCOUN20
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business and Basis of Presentation | Description of Business Aflac Incorporated (the Parent Company) and its subsidiaries (collectively, the Company) primarily sell supplemental health and life insurance in the United States and Japan. The Company's insurance business is marketed and administered through American Family Life Assurance Company of Columbus (Aflac), which operates in the United States (Aflac U.S.) and as a branch in Japan (Aflac Japan). American Family Life Assurance Company of New York (Aflac New York) is a wholly owned subsidiary of Aflac. Most of Aflac's policies are individually underwritten and marketed through independent agents. Additionally, Aflac U.S. markets and administers group products through Continental American Insurance Company (CAIC), branded as Aflac Group Insurance. Our insurance operations in the United States and our branch in Japan service the two markets for our insurance business. Aflac Japan's revenues, including realized gains and losses on its investment portfolio, accounted for 69% and 74% of the Company's total revenues in the three -month periods ended March 31, 2017 , and 2016 , respectively. The percentage of the Company's total assets attributable to Aflac Japan was 84% at March 31, 2017 , compared with 83% at December 31, 2016 . Basis of Presentation We prepare our financial statements in accordance with U.S. generally accepted accounting principles (GAAP). These principles are established primarily by the Financial Accounting Standards Board (FASB). In these Notes to the Consolidated Financial Statements, references to U.S. GAAP issued by the FASB are derived from the FASB Accounting Standards Codification TM (ASC). The preparation of financial statements in conformity with U.S. GAAP requires us to make estimates when recording transactions resulting from business operations based on currently available information. The most significant items on our balance sheet that involve a greater degree of accounting estimates and actuarial determinations subject to changes in the future are the valuation of investments and derivatives, deferred policy acquisition costs, liabilities for future policy benefits and unpaid policy claims, and income taxes. These accounting estimates and actuarial determinations are sensitive to market conditions, investment yields, mortality, morbidity, commission and other acquisition expenses, and terminations by policyholders. As additional information becomes available, or actual amounts are determinable, the recorded estimates will be revised and reflected in operating results. Although some variability is inherent in these estimates, we believe the amounts provided are adequate. The unaudited consolidated financial statements include the accounts of the Parent Company, its subsidiaries and those entities required to be consolidated under applicable accounting standards. All material intercompany accounts and transactions have been eliminated. In the opinion of management, the accompanying unaudited consolidated financial statements of the Company contain all adjustments, consisting of normal recurring accruals, which are necessary to fairly present the consolidated balance sheets as of March 31, 2017 and December 31, 2016 , the consolidated statements of earnings and comprehensive income (loss), shareholders' equity and cash flows for the three -month periods ended March 31, 2017 and 2016 . Results of operations for interim periods are not necessarily indicative of results for the entire year. As a result, these financial statements should be read in conjunction with the financial statements and notes thereto included in our annual report on Form 10-K for the year ended December 31, 2016 (2016 Annual Report). |
Reclassifications | Reclassifications : Certain reclassifications have been made to prior-year amounts to conform to current-year reporting classifications. These reclassifications had no impact on net earnings or total shareholders' equity. Prior year foreign currency transaction gains and losses have been reclassified from Other income (loss) to Realized investment gains (losses) - Derivative and other gains (losses) to conform to current-year reporting classifications. These reclassifications had no impact on net earnings or total shareholders' equity. This change in classification was made to reflect that the major source of our foreign currency transaction gains and losses is directly or indirectly a result of our investment activity. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements Consolidation - Interests Held through Related Parties That Are under Common Control: In October 2016, the FASB issued amendments which clarify the consolidation guidance on how a reporting entity that is the single decision maker of a variable interest entity (VIE) should treat indirect interests in the entity held through related parties that are under common control with the reporting entity when determining whether it is the primary beneficiary of that VIE. We adopted this guidance as of January 1, 2017. The adoption of this guidance did not have a significant impact on our financial position, results of operations, or disclosures. Compensation - Stock Compensation - Improvements to Employee Share-Based Payment Accounting: In March 2016, the FASB issued amendments which simplify several aspects for share-based payment award transactions, including income tax consequences, classification of awards as either liability or equities, and classification on the statement of cash flows. We adopted this guidance as of January 1, 2017. The amendment requires prospective recognition of excess tax benefits and deficiencies in the income statement, rather than in paid-in capital. As a result of applying this requirement, we believe that recognition of excess tax benefits will increase volatility in our statement of operations but the adoption of this guidance did not have a significant impact on our statement of financial position, operations, or disclosures. The amendment also requires all excess tax benefits and tax deficiencies (including tax benefits of dividends on share-based payment awards) to be recognized as income tax expense or benefit in the income statement. The guidance requires modified retrospective transition for settlements on all outstanding awards (both historical and future) that did not give rise to an excess benefit to be recorded through retained earnings on a cumulative-effect basis. The adoption of these amendments in the guidance did not have a significant impact on our financial position, results of operations, or disclosures. Additionally, the amendment requires that the minimum statutory tax withholding for all outstanding liability awards be reclassified at the date of adoption to equity (assuming equity classification results from the guidance change), and as a cumulative-effect adjustment to equity be recorded on a modified retrospective basis. The adoption of these amendments in the guidance did not have a significant impact on our financial position, results of operations, or disclosures. The guidance requires certain reclassifications of balances on the statement of cash flows to or from operating and financing activities. The reclassification guidance did not have a significant impact on our statement of cash flows. The amendment allows an entity to elect whether to use estimates of forfeitures, or to account for forfeitures as they occur, using modified retrospective application. We have made an entity-wide accounting policy election to estimate the number of awards that are expected to vest (consistent with our prior policy) . The election and adoption of this guidance did not have a significant impact on our financial position, results of operations, or disclosures. Investments - Equity Method and Joint Ventures - Simplifying the Transition to the Equity Method of Accounting: In March 2016, the FASB issued amendments which eliminate the requirement that when an investment qualifies for use of the equity method as a result of an increase in the level of ownership interest or degree of influence, an investor must adjust the investment, results of operations, and retained earnings retroactively on a step-by-step basis as if the equity method had been in effect during all previous periods that the investment had been held. Per the amendments, upon qualifying for the equity method of accounting, no retroactive adjustment of the investment is required. The amendments also require that an entity that has an available-for-sale equity security that becomes qualified for the equity method of accounting recognize through earnings the unrealized holding gain or loss in accumulated other comprehensive income at the date the investment becomes qualified for use of the equity method. We adopted this guidance as of January 1, 2017. The adoption of this guidance did not have a significant impact on our financial position, results of operations, or disclosures. Derivatives and Hedging - Contingent Put and Call Options in Debt Instruments: In March 2016, the FASB issued amendments which clarify what steps are required when assessing whether the economic characteristics and risks of call (put) options are clearly and closely related to the economic characteristics and risks of their debt hosts, which is one of the criteria for bifurcating an embedded derivative. Consequently, when a call (put) option is contingently exercisable, an entity does not have to assess whether the event that triggers the ability to exercise a call (put) option is related to interest rates or credit risks. We adopted this guidance as of January 1, 2017. The adoption of this guidance did not have a significant impact on our financial position, results of operations, or disclosures. Derivatives and Hedging - Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships: In March 2016, the FASB issued amendments which clarify that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument does not, in and of itself, require dedesignation of that hedging relationship provided that all other hedge accounting criteria remain intact. We adopted this guidance as of January 1, 2017. The adoption of this guidance did not have a significant impact on our financial position, results of operations, or disclosures. Financial Services - Insurance - Disclosures about Short-Duration Contracts: In May 2015, the FASB issued updated guidance requiring enhanced disclosures by all insurance entities that issue short-duration contracts. The amendments require insurance entities to disclose for annual reporting periods information about the liability for unpaid claims and claim adjustment expenses. The amendments also require insurance entities to disclose information about significant changes in methodologies and assumptions used to calculate the liability for unpaid claims and claim adjustment expenses. In addition, the amendments require insurance entities to disclose for annual and interim reporting periods a roll-forward of the liability for unpaid claims and claim adjustment expenses. For health insurance claims, the amendments require the disclosure of the total of incurred-but-not-reported liabilities and expected development on reported claims included in the liability for unpaid claims and claim adjustment expenses. We adopted this guidance as of December 31, 2016, and have no insurance contracts classified as short-duration. The adoption of this guidance did not have a significant impact on our disclosures. Presentation of Financial Statements - Going Concern - Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern: In August 2014, the FASB issued this amendment that provides U.S. GAAP guidance on management’s responsibility in evaluating whether there is substantial doubt about a company’s ability to continue as a going concern and about related footnote disclosures. For each reporting period, management will be required to evaluate whether there are conditions or events that raise substantial doubt about a company’s ability to continue as a going concern within one year from the date the financial statements are issued. The new guidance requires a formal assessment of going concern by management based on criteria prescribed in the new guidance. We adopted this guidance as of December 31, 2016. The adoption of this guidance did not have a significant impact on our financial position, results of operations, or disclosures, and no substantial doubt currently exists about the Company’s ability to continue as a going concern. |
Description of Accounting Pronouncements Pending Adoption | Accounting Pronouncements Pending Adoption Receivables-Nonrefundable Fees and Other Costs: Premium Amortization on Purchased Callable Debt Securities: In March 2017, the FASB issued amendments to shorten the amortization period for certain callable debt securities held at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount. The amendments are effective for public business entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The adoption of this guidance is not expected to have a significant impact on our financial position, results of operations, or disclosures. Compensation-Retirement Benefit: Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost: In March 2017, the FASB issued amendments requiring that an employer report the service cost component of net periodic pension cost and net periodic postretirement benefit cost in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net periodic pension cost and net periodic postretirement benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented. If a separate line item or items are used to present the other components of net benefit cost, that line item or items must be appropriately described. If a separate line item or items are not used, the line item or items used in the income statement to present the other components of net benefit cost must be disclosed. The amendments in this update also allow only the service cost component to be eligible for capitalization when applicable. The amendments are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted. The adoption of this guidance is not expected to have a significant impact on our financial position, results of operations, disclosures, or statements of cash flows. Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets - Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets: In February 2017, the FASB issued amendments clarifying that the accounting guidance for derecognition of nonfinancial assets does not apply to the derecognition of businesses, nonprofit activities or financial assets that meet the definition of "in substance nonfinancial assets." The new guidance defines an "in substance nonfinancial asset" to be an asset or group of assets for which substantially all of the fair value consists of nonfinancial assets and the group or subsidiary is not a business. The amendments are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Earlier adoption is permitted for fiscal years beginning after December 15, 2016, including interim periods therein. An entity is required to apply the amendments at the same time that it applies the FASB amendments for Revenue from Contracts with Customers. We are evaluating the impact of adoption of this guidance on our financial position, results of operations, disclosures, and statements of cash flows. Intangibles - Goodwill and Other - Simplifying the Test for Goodwill Impairment: In January 2017, the FASB issued amendments simplifying the subsequent measurement of goodwill. An entity, under this update, is no longer required to perform a hypothetical purchase price allocation to measure goodwill impairment. Instead, the entity should perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. The amendments are effective for public business entities that are U.S. SEC filers for annual or any interim goodwill impairment tests in fiscal years beginning after Dec. 15, 2019. Early adoption is permitted for any goodwill impairment tests performed on testing dates after January 1, 2017. We do not expect the adoption of this guidance to have a significant impact on our financial position, results of operations, or disclosures. Business Combinations - Clarifying the Definition of a Business: In January 2017, the FASB issued amendments clarifying when a set of assets and activities is a business. The amendments provide a screen to determine when a set of assets and activities is not a business. The amendments are effective for public business entities beginning after December 15, 2017, including interim periods within those periods. We do not expect the adoption of this guidance to have a significant impact on our financial position, results of operations, or disclosures. Statement of Cash Flows - Restricted Cash: In November 2016, the FASB issued amendments requiring that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. The amendments are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted. We do not expect the adoption of this guidance to have a significant impact on our financial position, results of operations, disclosures or statement of cash flows. Income Taxes - Intra-Entity Transfers of Assets Other Than Inventory: In October 2016, the FASB issued amendments that require an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The amendments are effective for public business entities for annual reporting periods beginning after December 15, 2017, including interim reporting periods within those annual reporting periods. Early adoption is permitted. We are evaluating the impact of adoption of this guidance on our financial position, results of operations and disclosures. Statement of Cash Flows - Classification of Certain Cash Receipts and Cash Payment s: In August 2016, the FASB issued amendments that provide guidance on eight specific statement of cash flows classification issues. The amendments are effective for public companies for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted for any interim or annual period. The adoption of this guidance is not expected to have a significant impact on our financial position, results of operations, disclosures, or statements of cash flows. Financial Instruments - Credit Losses - Measurement of Credit Losses on Financial Instruments: In June 2016, the FASB issued amendments that require a financial asset (or a group of financial assets) measured on an amortized cost basis to be presented net of an allowance for credit losses in order to reflect the amount expected to be collected on the financial asset(s). The measurement of expected credit losses is amended by replacing the incurred loss impairment methodology in current U.S. GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform about a credit loss. Credit losses on available-for-sale debt securities will continue to be measured in a manner similar to current U.S. GAAP. However, the amendments require that credit losses be presented as an allowance rather than as a writedown. Other amendments include changes to the balance sheet presentation and interest income recognition of purchased financial assets with a more-than-insignificant amount of credit deterioration since origination. The amendments are effective for public companies for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Companies may early adopt this guidance as of the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. We have identified certain financial instruments in scope of this guidance to include certain fixed maturity securities, loans and loan receivables and reinsurance recoverables (See Notes 3 and 7 for current balances of instruments in scope). We are continuing to evaluate the impact of adoption of this guidance on our financial position, results of operations and disclosures. Leases: In February 2016, the FASB issued updated guidance for accounting for leases. Per the amendments, lessees will be required to recognize all leases on the balance sheet, with the exception of short-term leases. A lease liability will be recorded for the obligation of a lessee to make lease payments arising from a lease. A right-of-use asset, will be recorded which represents the lessee’s right to use, or to control the use of, a specified asset for a lease term. Under the new guidance, lessor accounting is largely unchanged. The amendments are effective for public companies for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. We have identified certain operating leases in scope of this guidance to include office space and equipment leases (See Note 15 of the Notes to the Consolidated Financial Statements in the 2016 Annual Report for current balances of leases in scope). The leases within scope of this guidance will increase our right-of-use assets recorded on our financial position, however we estimate leases within scope of the guidance to represent less than 1% of our total assets as of March 31, 2017. We estimate that the adoption of this guidance will not have a significant impact on our financial position, results of operations and disclosures. Financial Instruments - Overall - Recognition and Measurement of Financial Assets and Financial Liabilities: In January 2016, the FASB issued guidance to address certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The main provisions require that equity investments be measured at fair value with changes recognized in net income; that changes in instrument-specific credit risk for financial liabilities that are measured under the fair value option be recognized in other comprehensive income; and that entities would make the assessment of the ability to realize a deferred tax asset (DTA) related to an available-for-sale (AFS) debt security in combination with the entity's other DTAs. The amendments are effective for public companies for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is not permitted, with the exception of the own credit provision if an entity has elected to measure a liability at fair value. We have identified certain financial instruments in scope of this guidance to include certain fixed maturity securities, perpetual securities and equity securities (See Note 3 for current balances of instruments in scope). We estimate that the impact of this guidance will increase volatility in our statement of operations and we are continuing to evaluate the impact of this guidance on our statement of financial position, operations and disclosures. Revenue from Contracts with Customers: In May 2014, the FASB issued updated guidance that affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards (e.g., insurance contracts or lease contracts). The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In August 2015, the FASB deferred the effective date for this standard to annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods. We have identified revenue in scope of this guidance to include certain revenues associated with affiliated entities in support of our operations. We estimate the revenue within scope of the guidance to represent less than 1% of our total revenues as of March 31, 2017. We estimate that the adoption of this guidance will not have a significant impact on our financial position, results of operations and disclosures. |
BUSINESS SEGMENT INFORMATION (T
BUSINESS SEGMENT INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Reconciliation of Revenue from Segments to Consolidated | Three Months Ended (In millions) 2017 2016 Revenues: Aflac Japan: Net earned premiums $ 3,194 $ 3,179 Net investment income, less amortized hedge costs (1) 557 590 Other income 10 8 Total Aflac Japan 3,761 3,777 Aflac U.S.: Net earned premiums 1,390 1,367 Net investment income 178 174 Other income 1 3 Total Aflac U.S. 1,569 1,544 Other business segments 67 65 Total business segment revenues 5,397 5,386 Realized investment gains (losses) (1), (2), (3) (109 ) 40 Corporate 87 67 Intercompany eliminations and other (66 ) (42 ) Total revenues $ 5,309 $ 5,451 (1) Hedge costs related to hedging U.S. dollar-denominated investments held in Aflac Japan were $52 and $32 for the three-month periods ended March 31, 2017 , and 2016 , respectively, and have been reclassified from realized investment gains (losses) and reported as a deduction from net investment income when analyzing segment operations to conform to current year reporting. (2) Excluding a gain of $21 and $22 for the three -month periods ended March 31, 2017 , and 2016 , respectively, related to the interest rate component of the change in fair value of foreign currency swaps on notes payable which is classified as an operating gain when analyzing segment operations (3) Prior year foreign currency transaction gains and losses have been reclassified from other non-operating income (loss) to realized investment gains (losses) to conform to current-year reporting classifications. These reclassifications had no impact on total revenues. |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | Three Months Ended (In millions) 2017 2016 Pretax earnings: Aflac Japan (1) $ 769 $ 806 Aflac U.S. 310 332 Other business segments 0 3 Total business segment pretax operating earnings 1,079 1,141 Interest expense, noninsurance operations (29 ) (29 ) Corporate and eliminations (23 ) (35 ) Pretax operating earnings 1,027 1,077 Realized investment gains (losses) (1), (2), (3) (109 ) 40 Other non-operating income (loss) (3) (20 ) 0 Total earnings before income taxes $ 898 $ 1,117 Income taxes applicable to pretax operating earnings $ 351 $ 372 Effect of foreign currency translation on after-tax operating earnings 5 13 (1) Hedge costs related to hedging U.S. dollar-denominated investments held in Aflac Japan were $52 and $32 for the three-month periods ended March 31, 2017 , and 2016 , respectively, and have been reclassified from realized investment gains (losses) and reported as a deduction from pretax operating earnings when analyzing segment operations to conform to current year reporting. (2) Excluding a gain of $21 and $22 for the three -month periods ended March 31, 2017 , and 2016 , respectively, related to the interest rate component of the change in fair value of foreign currency swaps on notes payable which is classified as an operating gain when analyzing segment operations (3) Prior year foreign currency transaction gains and losses have been reclassified from other non-operating income (loss) to realized investment gains (losses) to conform to current-year reporting classifications. These reclassifications had no impact on total earnings before income taxes. |
Reconciliation of Assets from Segment to Consolidated | Assets were as follows: (In millions) March 31, December 31, Assets: Aflac Japan $ 112,023 $ 107,858 Aflac U.S. 19,817 19,453 Other business segments 338 270 Total business segment assets 132,178 127,581 Corporate 26,024 26,476 Intercompany eliminations (24,552 ) (24,238 ) Total assets $ 133,650 $ 129,819 |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Available-for-sale Securities | The amortized cost for our investments in debt and perpetual securities, the cost for equity securities and the fair values of these investments are shown in the following tables. March 31, 2017 (In millions) Cost or Gross Gross Fair Securities available for sale, carried at fair value: Fixed maturities: Yen-denominated: Japan government and agencies $ 26,311 $ 3,203 $ 366 $ 29,148 Municipalities 281 26 12 295 Mortgage- and asset-backed securities 272 32 0 304 Public utilities 1,637 324 6 1,955 Sovereign and supranational 846 133 6 973 Banks/financial institutions 3,039 414 83 3,370 Other corporate 3,429 596 16 4,009 Total yen-denominated 35,815 4,728 489 40,054 U.S. dollar-denominated: U.S. government and agencies 161 11 0 172 Municipalities 901 133 7 1,027 Mortgage- and asset-backed securities 184 16 0 200 Public utilities 5,296 669 77 5,888 Sovereign and supranational 326 87 0 413 Banks/financial institutions 2,680 513 18 3,175 Other corporate 24,898 1,972 722 26,148 Total U.S. dollar-denominated 34,446 3,401 824 37,023 Total fixed maturities 70,261 8,129 1,313 77,077 Perpetual securities: Yen-denominated: Banks/financial institutions 1,315 208 50 1,473 Other corporate 196 23 0 219 U.S. dollar-denominated: Banks/financial institutions 52 26 0 78 Total perpetual securities 1,563 257 50 1,770 Equity securities: Yen-denominated 668 63 10 721 U.S. dollar-denominated 584 55 11 628 Total equity securities 1,252 118 21 1,349 Total securities available for sale $ 73,076 $ 8,504 $ 1,384 $ 80,196 December 31, 2016 (In millions) Cost or Gross Gross Fair Securities available for sale, carried at fair value: Fixed maturities: Yen-denominated: Japan government and agencies $ 22,857 $ 3,359 $ 160 $ 26,056 Municipalities 246 29 8 267 Mortgage- and asset-backed securities 1,096 33 8 1,121 Public utilities 1,533 318 3 1,848 Sovereign and supranational 862 186 5 1,043 Banks/financial institutions 2,673 403 74 3,002 Other corporate 3,192 623 3 3,812 Total yen-denominated 32,459 4,951 261 37,149 U.S dollar-denominated: U.S. government and agencies 148 10 0 158 Municipalities 894 142 8 1,028 Mortgage- and asset-backed securities 196 20 0 216 Public utilities 5,205 690 60 5,835 Sovereign and supranational 335 91 0 426 Banks/financial institutions 2,570 507 16 3,061 Other corporate 24,556 2,021 690 25,887 Total U.S. dollar-denominated 33,904 3,481 774 36,611 Total fixed maturities 66,363 8,432 1,035 73,760 Perpetual securities: Yen-denominated: Banks/financial institutions 1,266 128 49 1,345 Other corporate 189 24 0 213 U.S. dollar-denominated: Banks/financial institutions 51 24 0 75 Total perpetual securities 1,506 176 49 1,633 Equity securities: Yen-denominated 624 83 2 705 U.S. dollar-denominated 579 31 6 604 Total equity securities 1,203 114 8 1,309 Total securities available for sale $ 69,072 $ 8,722 $ 1,092 $ 76,702 |
Held-to-maturity Securities | March 31, 2017 (In millions) Cost or Gross Gross Fair Securities held to maturity, carried at amortized cost: Fixed maturities: Yen-denominated: Japan government and agencies $ 21,493 $ 5,114 $ 0 $ 26,607 Municipalities 363 104 0 467 Mortgage- and asset-backed securities 30 2 0 32 Public utilities 3,324 376 7 3,693 Sovereign and supranational 2,702 307 0 3,009 Banks/financial institutions 3,650 204 24 3,830 Other corporate 2,839 446 0 3,285 Total yen-denominated 34,401 6,553 31 40,923 Total securities held to maturity $ 34,401 $ 6,553 $ 31 $ 40,923 December 31, 2016 (In millions) Cost or Gross Gross Fair Securities held to maturity, carried at amortized cost: Fixed maturities: Yen-denominated: Japan government and agencies $ 20,702 $ 5,338 $ 0 $ 26,040 Municipalities 350 107 0 457 Mortgage- and asset-backed securities 30 2 0 32 Public utilities 3,201 358 23 3,536 Sovereign and supranational 2,602 283 8 2,877 Banks/financial institutions 3,731 195 26 3,900 Other corporate 2,734 452 7 3,179 Total yen-denominated 33,350 6,735 64 40,021 Total securities held to maturity $ 33,350 $ 6,735 $ 64 $ 40,021 |
Investments Classified by Contractual Maturity Date | The contractual maturities of our investments in fixed maturities at March 31, 2017 , were as follows: Aflac Japan Aflac U.S. (In millions) Amortized Fair Amortized Fair Available for sale: Due in one year or less $ 145 $ 161 $ 74 $ 77 Due after one year through five years 3,561 3,788 664 716 Due after five years through 10 years 9,846 10,093 3,128 3,324 Due after 10 years 43,392 48,447 8,462 9,421 Mortgage- and asset-backed securities 316 361 43 47 Total fixed maturities available for sale $ 57,260 $ 62,850 $ 12,371 $ 13,585 Held to maturity: Due after one year through five years $ 2,086 $ 2,193 $ 0 $ 0 Due after five years through 10 years 1,645 1,813 0 0 Due after 10 years 30,640 36,884 0 0 Mortgage- and asset-backed securities 30 33 0 0 Total fixed maturities held to maturity $ 34,401 $ 40,923 $ 0 $ 0 |
Economic Maturities of Investments in Perpetual Securities | The economic maturities of our investments in perpetual securities, which were all reported as available for sale at March 31, 2017 , were as follows: Aflac Japan Aflac U.S. (In millions) Amortized Fair Amortized Fair Due in one year or less $ 90 $ 87 $ 0 $ 0 Due after one year through five years 196 219 0 0 Due after 10 years 1,238 1,407 39 57 Total perpetual securities available for sale $ 1,524 $ 1,713 $ 39 $ 57 |
Investment Exposures Exceeding Ten Percent Shareholders Equity | Investment exposures that individually exceeded 10% of shareholders' equity were as follows: March 31, 2017 December 31, 2016 (In millions) Credit Amortized Fair Credit Amortized Fair Japan National Government (1) A $47,131 $54,971 A $42,931 $51,345 (1) Japan Government Bonds (JGBs) or JGB-backed securities |
Gain (Loss) on Investments | Information regarding pretax realized gains and losses from investments is as follows: Three Months Ended (In millions) 2017 2016 Realized investment gains (losses): Fixed maturities: Available for sale: Gross gains from sales $ 12 $ 2 Gross losses from sales (1) (15 ) (4 ) Net gains (losses) from redemptions (1) (29 ) 83 Other-than-temporary impairment losses (1) (4 ) (12 ) Total fixed maturities (36 ) 69 Perpetual securities: Available for sale: Net gains (losses) from redemptions 0 10 (1) Other-than-temporary impairment losses 0 (2 ) (1) Total perpetual securities 0 8 Equity securities: Net gains (losses) from redemptions 25 0 Other-than-temporary impairment losses (6 ) 0 Total equity securities 19 0 Derivatives and other: Derivative gains (losses) (52 ) (4 ) Foreign currency gains (losses) (71 ) (43 ) Total derivatives and other (123 ) (47 ) Total realized investment gains (losses) $ (140 ) $ 30 |
Net Effect on Shareholders' Equity of Unrealized Gains and Losses from Investment Securities | The net effect on shareholders’ equity of unrealized gains and losses from investment securities was as follows: (In millions) March 31, 2017 December 31, Unrealized gains (losses) on securities available for sale $ 7,120 $ 7,630 Deferred income taxes (2,646 ) (2,825 ) Shareholders’ equity, unrealized gains (losses) on investment securities $ 4,474 $ 4,805 |
Investments Gross Unrealized Loss Aging | The following tables show the fair values and gross unrealized losses of our available-for-sale and held-to-maturity investments that were in an unrealized loss position, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position. March 31, 2017 Total Less than 12 months 12 months or longer (In millions) Fair Unrealized Fair Unrealized Fair Unrealized Fixed Maturities: Japan government and Yen-denominated $ 5,940 $ 366 $ 5,940 $ 366 $ 0 $ 0 Municipalities: U.S. dollar-denominated 45 7 0 0 45 7 Yen-denominated 132 12 132 12 0 0 Public utilities: U.S. dollar-denominated 1,642 77 1,124 37 518 40 Yen-denominated 325 13 127 6 198 7 Sovereign and supranational: Yen-denominated 39 6 39 6 0 0 Banks/financial institutions: U.S. dollar-denominated 390 18 309 6 81 12 Yen-denominated 1,531 107 646 34 885 73 Other corporate: U.S. dollar-denominated 10,690 722 7,046 272 3,644 450 Yen-denominated 415 16 415 16 0 0 Total fixed maturities 21,149 1,344 15,778 755 5,371 589 Perpetual securities: Yen-denominated 409 50 0 0 409 50 Total perpetual securities 409 50 0 0 409 50 Equity securities: U.S. dollar-denominated 131 11 117 8 14 3 Yen-denominated 208 10 172 5 36 5 Total equity securities 339 21 289 13 50 8 Total $ 21,897 $ 1,415 $ 16,067 $ 768 $ 5,830 $ 647 December 31, 2016 Total Less than 12 months 12 months or longer (In millions) Fair Unrealized Fair Unrealized Fair Unrealized Fixed Maturities: Japan government and Yen-denominated $ 3,958 $ 160 $ 3,958 $ 160 $ 0 $ 0 Municipalities: U.S. dollar-denominated 44 8 0 0 44 8 Yen-denominated 105 8 105 8 0 0 Mortgage- and asset- Yen-denominated 713 8 713 8 0 0 Public utilities: U.S. dollar-denominated 1,265 60 790 32 475 28 Yen-denominated 635 26 347 14 288 12 Sovereign and supranational: Yen-denominated 244 13 38 5 206 8 Banks/financial institutions: U.S. dollar-denominated 268 16 238 10 30 6 Yen-denominated 1,521 100 636 19 885 81 Other corporate: U.S. dollar-denominated 10,462 690 7,252 346 3,210 344 Yen-denominated 321 10 321 10 0 0 Total fixed maturities 19,536 1,099 14,398 612 5,138 487 Perpetual securities: Yen-denominated 479 49 85 1 394 48 Total perpetual securities 479 49 85 1 394 48 Equity securities: U.S. dollar-denominated 211 6 211 6 0 0 Yen-denominated 49 2 49 2 0 0 Total equity securities 260 8 260 8 0 0 Total $ 20,275 $ 1,156 $ 14,743 $ 621 $ 5,532 $ 535 |
Other Investments | The table below reflects the composition of the carrying value for other investments as of the periods presented. (In millions) March 31, 2017 December 31, 2016 Other investments: Commercial mortgage loans $ 870 $ 855 Middle market loans 439 319 Short-term investments 141 89 Policy loans 197 184 Other 54 3 Total other investments $ 1,701 $ 1,450 |
Securities Lending Transactions Accounted for as Secured Borrowings | Details of our securities lending activities were as follows: Securities Lending Transactions Accounted for as Secured Borrowings March 31, 2017 Remaining Contractual Maturity of the Agreements (In millions) Overnight (1) Up to 30 Total Securities lending transactions: Japan government and agencies $ 0 $ 885 $ 885 Public utilities 87 0 87 Banks/financial institutions 38 0 38 Other corporate 472 0 472 Total borrowings $ 597 $ 885 $ 1,482 Gross amount of recognized liabilities for securities lending transactions $ 1,482 Amounts related to agreements not included in offsetting disclosure in Note 4 $ 0 (1) These securities are pledged as collateral under our U.S. securities lending program and can be called at our discretion; therefore, they are classified as Overnight and Continuous. Securities Lending Transactions Accounted for as Secured Borrowings December 31, 2016 Remaining Contractual Maturity of the Agreements (In millions) Overnight (1) Up to 30 Total Securities lending transactions: Public utilities $ 62 $ 0 $ 62 Banks/financial institutions 34 0 34 Other corporate 430 0 430 Total borrowings $ 526 $ 0 $ 526 Gross amount of recognized liabilities for securities lending transactions $ 526 Amounts related to agreements not included in offsetting disclosure in Note 4 $ 0 (1) These securities are pledged as collateral under our U.S. securities lending program and can be called at our discretion; therefore, they are classified as Overnight and Continuous. |
Variable Interest Entity, Consolidated | |
Investments in Variable Interest Entities | VIEs - Consolidated The following table presents the cost or amortized cost, fair value and balance sheet caption in which the assets and liabilities of consolidated VIEs are reported. Investments in Consolidated Variable Interest Entities March 31, 2017 December 31, 2016 (In millions) Cost or Amortized Fair Cost or Amortized Fair Assets: Fixed maturities, available for sale $ 4,143 $ 4,964 $ 4,168 $ 4,982 Perpetual securities, available for sale 246 215 237 208 Equity securities 1,013 1,078 972 1,044 Other investments (1) 926 906 819 789 Other assets (2) 146 146 127 127 Total assets of consolidated VIEs $ 6,474 $ 7,309 $ 6,323 $ 7,150 Liabilities: Other liabilities (2) $ 125 $ 125 $ 146 $ 146 Total liabilities of consolidated VIEs $ 125 $ 125 $ 146 $ 146 |
Variable Interest Entity, Not Consolidated | |
Investments in Variable Interest Entities | VIEs-Not Consolidated The table below reflects the amortized cost, fair value and balance sheet caption in which our investment in VIEs not consolidated are reported. Investments in Variable Interest Entities Not Consolidated March 31, 2017 December 31, 2016 (In millions) Amortized Fair Amortized Fair Assets: Fixed maturities, available for sale $ 4,823 $ 5,354 $ 4,729 $ 5,261 Perpetual securities, available for sale 178 230 172 200 Fixed maturities, held to maturity 2,660 3,039 2,563 2,948 Other investments 52 52 1 1 Total investments in VIEs not consolidated $ 7,713 $ 8,675 $ 7,465 $ 8,410 |
DERIVATIVE INSTRUMENTS (Tables)
DERIVATIVE INSTRUMENTS (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | March 31, 2017 December 31, 2016 (In millions) Asset Liability Asset Liability Hedge Designation/ Derivative Notional Fair Value Fair Value Notional Fair Value Fair Value Cash flow hedges: Foreign currency swaps $ 75 $ 0 $ (6 ) $ 75 $ 0 $ (10 ) Total cash flow hedges 75 0 (6 ) 75 0 (10 ) Fair value hedges: Foreign currency forwards 9,705 10 (428 ) 10,965 0 (759 ) Foreign currency options 5,560 5 (4 ) 4,224 2 (32 ) Total fair value hedges 15,265 15 (432 ) 15,189 2 (791 ) Net investment hedge: Foreign currency forwards 236 0 (4 ) 209 5 (2 ) Foreign currency options 924 20 (18 ) 843 41 (17 ) Total net investment hedge 1,160 20 (22 ) 1,052 46 (19 ) Non-qualifying strategies: Foreign currency swaps 5,890 318 (218 ) 6,266 490 (220 ) Foreign currency forwards 11,972 225 (421 ) 21,218 667 (956 ) Foreign currency options 0 0 0 41 0 (2 ) Credit default swaps 89 2 0 86 2 0 Total non-qualifying strategies 17,951 545 (639 ) 27,611 1,159 (1,178 ) Total derivatives $ 34,451 $ 580 $ (1,099 ) $ 43,927 $ 1,207 $ (1,998 ) Balance Sheet Location Other assets $ 14,115 $ 580 $ 0 $ 18,329 $ 1,207 $ 0 Other liabilities 20,336 0 (1,099 ) 25,598 0 (1,998 ) Total derivatives $ 34,451 $ 580 $ (1,099 ) $ 43,927 $ 1,207 $ (1,998 ) |
Schedule of Fair Value Hedging Instruments, Statements of Financial Performance and Financial Position, Location | The following table presents the gains and losses on derivatives and the related hedged items in fair value hedges. Fair Value Hedging Relationships (In millions) Hedging Derivatives Hedged Items Hedging Derivatives Hedged Items Total Gains (Losses) Gains (Losses) Gains (Losses) Ineffectiveness Three Months Ended March 31, 2017: Foreign currency forwards Fixed-maturity and equity securities $ 341 $ (48 ) $ 389 $ (372 ) $ 17 Foreign currency options Fixed-maturity securities 24 13 11 (10 ) 1 Three Months Ended March 31, 2016: Foreign currency forwards Fixed-maturity securities $ 857 $ (44 ) $ 901 $ (882 ) $ 19 Foreign currency options Fixed-maturity securities (1 ) (1 ) 0 0 0 |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | The following table summarizes the impact to realized investment gains (losses) and other comprehensive income (loss) from all derivatives and hedging instruments. Three Months Ended March 31, 2017 2016 (In millions) Realized Investment Other (1) Realized Investment Other (1) Qualifying hedges: Cash flow hedges: Foreign currency swaps $ 0 $ 2 $ 0 $ 3 Total cash flow hedges 0 2 0 3 Fair value hedges: Foreign currency forwards (2) (31 ) 0 (25 ) 0 Foreign currency options (2) 14 0 (1 ) 0 Total fair value hedges (17 ) 0 (26 ) 0 Net investment hedge: Non-derivative hedging instruments 0 (17 ) 0 (15 ) Foreign currency forwards 0 (9 ) 0 (50 ) Foreign currency options 0 (23 ) 0 (16 ) Total net investment hedge 0 (49 ) 0 (81 ) Non-qualifying strategies: Foreign currency swaps (8 ) 0 10 0 Foreign currency forwards (27 ) 0 11 0 Credit default swaps 0 0 1 0 Total non-qualifying strategies (35 ) 0 22 0 Total $ (52 ) $ (47 ) $ (4 ) $ (78 ) (1) Cash flow hedge items are recorded as unrealized gains (losses) on derivatives and net investment hedge items are recorded in the unrealized foreign currency translation gains (losses) line in the consolidated statement of comprehensive income (loss). (2) Impact shown net of effect of hedged items (see Fair Value Hedges section of this Note 4 for further detail) |
Fair Value and Notional Amount of Derivatives with Counterparty Credit Risk | The counterparties to these derivatives are financial institutions with the following credit ratings: March 31, 2017 December 31, 2016 (In millions) Notional Amount Asset Derivatives Liability Derivatives Notional Amount Asset Derivatives Liability Derivatives Counterparties' credit rating: AA $ 6,391 $ 125 $ (172 ) $ 6,844 $ 247 $ (308 ) A 27,619 449 (862 ) 36,019 900 (1,621 ) BBB 441 6 (65 ) 1,064 60 (69 ) Total $ 34,451 $ 580 $ (1,099 ) $ 43,927 $ 1,207 $ (1,998 ) |
Offsetting Assets | Offsetting of Financial Assets and Derivative Assets March 31, 2017 Gross Amounts Not Offset (In millions) Gross Amount of Recognized Assets Gross Amount Offset in Balance Sheet Net Amount of Assets Presented in Balance Sheet Financial Instruments Securities Collateral Cash Collateral Received Net Amount Derivative assets: Derivative assets subject to a master netting agreement or offsetting arrangement $ 434 $ 0 $ 434 $ (336 ) $ 0 $ (97 ) $ 1 Derivative assets not subject to a master netting agreement or offsetting arrangement 146 146 146 Total derivative assets 580 0 580 (336 ) 0 (97 ) 147 Securities lending and similar arrangements 1,445 0 1,445 0 0 (1,445 ) 0 Total $ 2,025 $ 0 $ 2,025 $ (336 ) $ 0 $ (1,542 ) $ 147 December 31, 2016 Gross Amounts Not Offset (In millions) Gross Amount of Recognized Assets Gross Amount Offset in Balance Sheet Net Amount of Assets Presented in Balance Sheet Financial Instruments Securities Collateral Cash Collateral Received Net Amount Derivative assets: Derivative assets subject to a master netting agreement or offsetting arrangement $ 1,080 $ 0 $ 1,080 $ (698 ) $ 0 $ (382 ) $ 0 Derivative assets not subject to a master netting agreement or offsetting arrangement 127 127 127 Total derivative assets 1,207 0 1,207 (698 ) 0 (382 ) 127 Securities lending and similar arrangements 513 0 513 0 0 (513 ) 0 Total $ 1,720 $ 0 $ 1,720 $ (698 ) $ 0 $ (895 ) $ 127 |
Offsetting Liabilities | Offsetting of Financial Liabilities and Derivative Liabilities March 31, 2017 Gross Amounts Not Offset (In millions) Gross Amount of Recognized Liabilities Gross Amount Offset in Balance Sheet Net Amount of Liabilities Presented in Balance Sheet Financial Instruments Securities Collateral Cash Collateral Pledged Net Amount Derivative liabilities: Derivative liabilities subject to a master netting agreement or offsetting arrangement $ (974 ) $ 0 $ (974 ) $ 336 $ 527 $ 23 $ (88 ) Derivative liabilities not subject to a master netting agreement or offsetting arrangement (125 ) (125 ) (125 ) Total derivative liabilities (1,099 ) 0 (1,099 ) 336 527 23 (213 ) Securities lending and similar arrangements (1,482 ) 0 (1,482 ) 1,445 0 0 (37 ) Total $ (2,581 ) $ 0 $ (2,581 ) $ 1,781 $ 527 $ 23 $ (250 ) December 31, 2016 Gross Amounts Not Offset (In millions) Gross Amount of Recognized Liabilities Gross Amount Offset in Balance Sheet Net Amount of Liabilities Presented in Balance Sheet Financial Instruments Securities Collateral Cash Collateral Pledged Net Amount Derivative liabilities: Derivative liabilities subject to a master netting agreement or offsetting arrangement $ (1,852 ) $ 0 $ (1,852 ) $ 698 $ 1,130 $ 21 $ (3 ) Derivative liabilities not subject to a master netting agreement or offsetting arrangement (146 ) (146 ) (146 ) Total derivative liabilities (1,998 ) 0 (1,998 ) 698 1,130 21 (149 ) Securities lending and similar arrangements (526 ) 0 (526 ) 513 0 0 (13 ) Total $ (2,524 ) $ 0 $ (2,524 ) $ 1,211 $ 1,130 $ 21 $ (162 ) |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Hierarchy, Assets and Liabilities Measured on Recurring Basis | The following tables present the fair value hierarchy levels of the Company's assets and liabilities that are measured and carried at fair value on a recurring basis. March 31, 2017 (In millions) Quoted Prices in Significant Significant Total Assets: Securities available for sale, carried at Fixed maturities: Government and agencies $ 28,457 $ 863 $ 0 $ 29,320 Municipalities 0 1,322 0 1,322 Mortgage- and asset-backed securities 0 309 195 504 Public utilities 0 7,827 16 7,843 Sovereign and supranational 0 1,386 0 1,386 Banks/financial institutions 0 6,521 24 6,545 Other corporate 0 30,122 35 30,157 Total fixed maturities 28,457 48,350 270 77,077 Perpetual securities: Banks/financial institutions 0 1,551 0 1,551 Other corporate 0 219 0 219 Total perpetual securities 0 1,770 0 1,770 Equity securities 1,339 6 4 1,349 Other assets: Foreign currency swaps 0 174 144 318 Foreign currency forwards 0 235 0 235 Foreign currency options 0 25 0 25 Credit default swaps 0 0 2 2 Total other assets 0 434 146 580 Other investments 141 0 0 141 Cash and cash equivalents 4,205 0 0 4,205 Total assets $ 34,142 $ 50,560 $ 420 $ 85,122 Liabilities: Foreign currency swaps $ 0 $ 99 $ 125 $ 224 Foreign currency forwards 0 853 0 853 Foreign currency options 0 22 0 22 Total liabilities $ 0 $ 974 $ 125 $ 1,099 December 31, 2016 (In millions) Quoted Prices in Significant Significant Total Assets: Securities available for sale, carried at Fixed maturities: Government and agencies $ 25,387 $ 827 $ 0 $ 26,214 Municipalities 0 1,295 0 1,295 Mortgage- and asset-backed securities 0 1,139 198 1,337 Public utilities 0 7,667 16 7,683 Sovereign and supranational 0 1,469 0 1,469 Banks/financial institutions 0 6,038 25 6,063 Other corporate 0 29,699 0 29,699 Total fixed maturities 25,387 48,134 239 73,760 Perpetual securities: Banks/financial institutions 0 1,420 0 1,420 Other corporate 0 213 0 213 Total perpetual securities 0 1,633 0 1,633 Equity securities 1,300 6 3 1,309 Other assets: Foreign currency swaps 0 365 125 490 Foreign currency forwards 0 672 0 672 Foreign currency options 0 43 0 43 Credit default swaps 0 0 2 2 Total other assets 0 1,080 127 1,207 Other investments 276 0 0 276 Cash and cash equivalents 4,859 0 0 4,859 Total assets $ 31,822 $ 50,853 $ 369 $ 83,044 Liabilities: Foreign currency swaps $ 0 $ 84 $ 146 $ 230 Foreign currency forwards 0 1,717 0 1,717 Foreign currency options 0 51 0 51 Total liabilities $ 0 $ 1,852 $ 146 $ 1,998 |
Fair Value Hierarchy Levels of Assets and Liabilities Carried at Cost or Amortized Cost | The following tables present the carrying amount and fair value categorized by fair value hierarchy level for the Company's financial instruments that are not carried at fair value. March 31, 2017 (In millions) Carrying Quoted Prices in Significant Significant Total Assets: Securities held to maturity, Fixed maturities: Government and agencies $ 21,493 $ 26,607 $ 0 $ 0 $ 26,607 Municipalities 363 0 467 0 467 Mortgage and asset-backed 30 0 10 22 32 Public utilities 3,324 0 3,693 0 3,693 Sovereign and 2,702 0 3,009 0 3,009 Banks/financial institutions 3,650 0 3,830 0 3,830 Other corporate 2,839 0 3,285 0 3,285 Other investments (1) 1,309 0 0 1,288 1,288 Total assets $ 35,710 $ 26,607 $ 14,294 $ 1,310 $ 42,211 Liabilities: Other policyholders’ funds $ 6,945 $ 0 $ 0 $ 6,824 $ 6,824 Notes payable 5,230 0 5,226 266 5,492 Total liabilities $ 12,175 $ 0 $ 5,226 $ 7,090 $ 12,316 (1) Excludes policy loans of $197 and equity method investments of $54 , at carrying value December 31, 2016 (In millions) Carrying Quoted Prices in Significant Significant Total Assets: Securities held to maturity, Fixed maturities: Government and agencies $ 20,702 $ 26,040 $ 0 $ 0 $ 26,040 Municipalities 350 0 457 0 457 Mortgage and asset-backed 30 0 10 22 32 Public utilities 3,201 0 3,536 0 3,536 Sovereign and 2,602 0 2,877 0 2,877 Banks/financial institutions 3,731 0 3,900 0 3,900 Other corporate 2,734 0 3,179 0 3,179 Other investments 1,174 0 0 1,142 1,142 Total assets $ 34,524 $ 26,040 $ 13,959 $ 1,164 $ 41,163 Liabilities: Other policyholders’ funds $ 6,659 $ 0 $ 0 $ 6,540 $ 6,540 Notes payable 5,339 0 0 5,530 5,530 Total liabilities $ 11,998 $ 0 $ 0 $ 12,070 $ 12,070 |
Fair Value Assets Available-for-Sale Securities Primary Pricing Sources | December 31, 2016 (In millions) Quoted Prices in Active Markets Significant Observable Significant Unobservable Inputs Total Securities available for sale, carried at fair value: Fixed maturities: Government and agencies: Third party pricing vendor $ 25,387 $ 827 $ 0 $ 26,214 Total government and agencies 25,387 827 0 26,214 Municipalities: Third party pricing vendor 0 1,295 0 1,295 Total municipalities 0 1,295 0 1,295 Mortgage- and asset-backed securities: Third party pricing vendor 0 1,139 0 1,139 Broker/other 0 0 198 198 Total mortgage- and asset-backed securities 0 1,139 198 1,337 Public utilities: Third party pricing vendor 0 7,667 0 7,667 Broker/other 0 0 16 16 Total public utilities 0 7,667 16 7,683 Sovereign and supranational: Third party pricing vendor 0 1,469 0 1,469 Total sovereign and supranational 0 1,469 0 1,469 Banks/financial institutions: Third party pricing vendor 0 6,038 0 6,038 Broker/other 0 0 25 25 Total banks/financial institutions 0 6,038 25 6,063 Other corporate: Third party pricing vendor 0 29,699 0 29,699 Total other corporate 0 29,699 0 29,699 Total fixed maturities 25,387 48,134 239 73,760 Perpetual securities: Banks/financial institutions: Third party pricing vendor 0 1,420 0 1,420 Total banks/financial institutions 0 1,420 0 1,420 Other corporate: Third party pricing vendor 0 213 0 213 Total other corporate 0 213 0 213 Total perpetual securities 0 1,633 0 1,633 Equity securities: Third party pricing vendor 1,300 6 0 1,306 Broker/other 0 0 3 3 Total equity securities 1,300 6 3 1,309 Total securities available for sale $ 26,687 $ 49,773 $ 242 $ 76,702 The following tables present the pricing sources for the fair values of our fixed maturities, perpetual securities, and equity securities. March 31, 2017 (In millions) Quoted Prices in Active Markets for Identical Assets Significant Observable Inputs Significant Unobservable Inputs Total Securities available for sale, carried at fair value: Fixed maturities: Government and agencies: Third party pricing vendor $ 28,457 $ 863 $ 0 $ 29,320 Total government and agencies 28,457 863 0 29,320 Municipalities: Third party pricing vendor 0 1,322 0 1,322 Total municipalities 0 1,322 0 1,322 Mortgage- and asset-backed securities: Third party pricing vendor 0 309 0 309 Broker/other 0 0 195 195 Total mortgage- and asset-backed securities 0 309 195 504 Public utilities: Third party pricing vendor 0 7,827 0 7,827 Broker/other 0 0 16 16 Total public utilities 0 7,827 16 7,843 Sovereign and supranational: Third party pricing vendor 0 1,386 0 1,386 Total sovereign and supranational 0 1,386 0 1,386 Banks/financial institutions: Third party pricing vendor 0 6,521 0 6,521 Broker/other 0 0 24 24 Total banks/financial institutions 0 6,521 24 6,545 Other corporate: Third party pricing vendor 0 30,122 0 30,122 Broker/other 0 0 35 35 Total other corporate 0 30,122 35 30,157 Total fixed maturities 28,457 48,350 270 77,077 Perpetual securities: Banks/financial institutions: Third party pricing vendor 0 1,551 0 1,551 Total banks/financial institutions 0 1,551 0 1,551 Other corporate: Third party pricing vendor 0 219 0 219 Total other corporate 0 219 0 219 Total perpetual securities 0 1,770 0 1,770 Equity securities: Third party pricing vendor 1,339 6 0 1,345 Broker/other 0 0 4 4 Total equity securities 1,339 6 4 1,349 Total securities available for sale $ 29,796 $ 50,126 $ 274 $ 80,196 |
Fair Value Assets Held-To-Maturity Securities Primary Pricing Sources | December 31, 2016 (In millions) Quoted Prices in Active Markets Significant Observable Significant Unobservable Inputs Total Securities held to maturity, carried at amortized cost: Fixed maturities: Government and agencies: Third party pricing vendor $ 26,040 $ 0 $ 0 $ 26,040 Total government and agencies 26,040 0 0 26,040 Municipalities: Third party pricing vendor 0 457 0 457 Total municipalities 0 457 0 457 Mortgage- and asset-backed securities: Third party pricing vendor 0 10 0 10 Broker/other 0 0 22 22 Total mortgage- and asset-backed securities 0 10 22 32 Public utilities: Third party pricing vendor 0 3,536 0 3,536 Total public utilities 0 3,536 0 3,536 Sovereign and supranational: Third party pricing vendor 0 2,877 0 2,877 Total sovereign and supranational 0 2,877 0 2,877 Banks/financial institutions: Third party pricing vendor 0 3,900 0 3,900 Total banks/financial institutions 0 3,900 0 3,900 Other corporate: Third party pricing vendor 0 3,179 0 3,179 Total other corporate 0 3,179 0 3,179 Total securities held to maturity $ 26,040 $ 13,959 $ 22 $ 40,021 March 31, 2017 (In millions) Quoted Prices in Active Markets for Identical Assets Significant Observable Inputs Significant Unobservable Inputs Total Securities held to maturity, carried at amortized cost: Fixed maturities: Government and agencies: Third party pricing vendor $ 26,607 $ 0 $ 0 $ 26,607 Total government and agencies 26,607 0 0 26,607 Municipalities: Third party pricing vendor 0 467 0 467 Total municipalities 0 467 0 467 Mortgage- and asset-backed securities: Third party pricing vendor 0 10 0 10 Broker/other 0 0 22 22 Total mortgage- and asset-backed securities 0 10 22 32 Public utilities: Third party pricing vendor 0 3,693 0 3,693 Total public utilities 0 3,693 0 3,693 Sovereign and supranational: Third party pricing vendor 0 3,009 0 3,009 Total sovereign and supranational 0 3,009 0 3,009 Banks/financial institutions: Third party pricing vendor 0 3,830 0 3,830 Total banks/financial institutions 0 3,830 0 3,830 Other corporate: Third party pricing vendor 0 3,285 0 3,285 Total other corporate 0 3,285 0 3,285 Total securities held to maturity $ 26,607 $ 14,294 $ 22 $ 40,923 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | Transfers between Hierarchy Levels and Level 3 Rollforward There were no transfers between Level 1 and 2 for the three -month periods ended March 31, 2017 and 2016 , respectively. The following tables present the changes in fair value of our available-for-sale investments and derivatives classified as Level 3. Three Months Ended Fixed Maturities Equity Derivatives (1) (In millions) Mortgage- Public Banks/ Other Foreign Credit Total Balance, beginning of period $ 198 $ 16 $ 25 $ 0 $ 3 $ (21 ) $ 2 $ 223 Realized investment gains (losses) included in earnings 0 0 0 0 0 38 0 38 Unrealized gains (losses) included in other comprehensive income (loss) 6 0 (1 ) 0 0 2 0 7 Purchases, issuances, sales and settlements: Purchases 0 0 0 35 2 0 0 37 Issuances 0 0 0 0 0 0 0 0 Sales 0 0 0 0 (1 ) 0 0 (1 ) Settlements (9 ) 0 0 0 0 0 0 (9 ) Transfers into Level 3 0 0 0 0 0 0 0 0 Transfers out of Level 3 0 0 0 0 0 0 0 0 Balance, end of period $ 195 $ 16 $ 24 $ 35 $ 4 $ 19 $ 2 $ 295 Changes in unrealized gains (losses) relating $ 0 $ 0 $ 0 $ 0 $ 0 $ 38 $ 0 $ 38 (1) Derivative assets and liabilities are presented net Three Months Ended Fixed Maturities Equity Derivatives (1) (In millions) Mortgage- Public Banks/ Foreign Credit Total Balance, beginning of period $ 220 $ 0 $ 26 $ 3 $ (192 ) $ 1 $ 58 Realized investment gains (losses) included in earnings 0 0 0 0 125 1 126 Unrealized gains (losses) included in other comprehensive income (loss) 21 0 0 0 4 0 25 Purchases, issuances, sales and settlements: Purchases 0 0 0 0 0 0 0 Issuances 0 0 0 0 0 0 0 Sales 0 0 0 0 0 0 0 Settlements (4 ) 0 0 0 0 0 (4 ) Transfers into Level 3 0 0 0 0 0 0 0 Transfers out of Level 3 0 0 0 0 0 0 0 Balance, end of period $ 237 $ 0 $ 26 $ 3 $ (63 ) $ 2 $ 205 Changes in unrealized gains (losses) relating $ 0 $ 0 $ 0 $ 0 $ 125 $ 1 $ 126 (1) Derivative assets and liabilities are presented net |
Fair Value Inputs Assets Quantitative Information | December 31, 2016 (In millions) Fair Value Valuation Technique(s) Unobservable Input Range Assets: Securities available for sale, carried at fair value: Fixed maturities: Mortgage- and asset-backed securities $ 198 Consensus pricing Offered quotes N/A (d) Public utilities 16 Discounted cash flow Historical volatility N/A (d) Banks/financial institutions 25 Consensus pricing Offered quotes N/A (d) Equity securities 3 Net asset value Offered quotes $1-$701 ($8) Other assets: Foreign currency swaps 16 Discounted cash flow Interest rates (USD) 2.34% - 2.59% (a) Interest rates (JPY) .22% - .80% (b) CDS spreads 17 - 172 bps Foreign exchange rates 21.47% (c) 29 Discounted cash flow Interest rates (USD) 2.34% - 2.59% (a) Interest rates (JPY) .22% - .80% (b) CDS spreads 16 - 88 bps 80 Discounted cash flow Interest rates (USD) 2.34% - 2.59% (a) Interest rates (JPY) .22% - .80% (b) Foreign exchange rates 21.47% (c) Credit default swaps 2 Discounted cash flow Base correlation 52.18% - 56.07% (e) CDS spreads 54 bps Recovery rate 36.69% Total assets $ 369 (a) Inputs derived from U.S. long-term rates to accommodate long maturity nature of our swaps (b) Inputs derived from Japan long-term rates to accommodate long maturity nature of our swaps (c) Based on 10 year volatility of JPY/USD exchange rate (d) N/A represents securities where we receive unadjusted broker quotes and for which there is no transparency into the providers' valuation techniques or unobservable inputs. (e) Range of base correlation for our bespoke tranche for attachment and detachment points corresponding to market indices The following tables summarize the significant unobservable inputs used in the valuation of our Level 3 available-for-sale investments and derivatives. Included in the tables are the inputs or range of possible inputs that have an effect on the overall valuation of the financial instruments. March 31, 2017 (In millions) Fair Value Valuation Technique(s) Unobservable Input Range Assets: Securities available for sale, carried at fair value: Fixed maturities: Mortgage- and asset-backed securities $ 195 Consensus pricing Offered quotes N/A (d) Public utilities 16 Discounted cash flow Historical volatility N/A (d) Banks/financial institutions 24 Consensus pricing Offered quotes N/A (d) Other corporate 35 Discounted cash flow Historical volatility N/A (e) Equity securities 4 Net asset value Offered quotes $1 - $728 ($8) Other assets: Foreign currency swaps 25 Discounted cash flow Interest rates (USD) 2.18% - 2.45% (a) Interest rates (JPY) .20% - .73% (b) CDS spreads 11 - 147 bps Foreign exchange rates 21.34% (c) 50 Discounted cash flow Interest rates (USD) 2.18% - 2.45% (a) Interest rates (JPY) .20% - .73% (b) CDS spreads 10 - 79 bps 69 Discounted cash flow Interest rates (USD) 2.18% - 2.45% (a) Interest rates (JPY) .20% - .73% (b) Foreign exchange rates 21.34% (c) Credit default swaps 2 Discounted cash flow Base correlation 61.55% - 66.55% (e) CDS spreads 48 bps Recovery rate 36.69% Total assets $ 420 (a) Inputs derived from U.S. long-term rates to accommodate long maturity nature of our swaps (b) Inputs derived from Japan long-term rates to accommodate long maturity nature of our swaps (c) Based on 10 year volatility of JPY/USD exchange rate (d) N/A represents securities where we receive unadjusted broker quotes and for which there is no transparency into the providers' valuation techniques or unobservable inputs. (e) Range of base correlation for our bespoke tranche for attachment and detachment points corresponding to market indices. |
Fair Value Inputs Liabilities Quantitative Information | December 31, 2016 (In millions) Fair Value Valuation Technique(s) Unobservable Input Range Liabilities: Foreign currency swaps $ 113 Discounted cash flow Interest rates (USD) 2.34% - 2.59% (a) Interest rates (JPY) .22% - .80% (b) CDS spreads 17 - 172 bps Foreign exchange rates 21.47% (c) 23 Discounted cash flow Interest rates (USD) 2.34% - 2.59% (a) Interest rates (JPY) .22% - .80% (b) CDS spreads 24 - 216 bps 10 Discounted cash flow Interest rates (USD) 2.34% - 2.59% (a) Interest rates (JPY) .22% - .80% (b) Foreign exchange rates 21.47% (c) Total liabilities $ 146 (a) Inputs derived from U.S. long-term rates to accommodate long maturity nature of our swaps (b) Inputs derived from Japan long-term rates to accommodate long maturity nature of our swaps (c) Based on 10 year volatility of JPY/USD exchange rate March 31, 2017 (In millions) Fair Value Valuation Technique(s) Unobservable Input Range Liabilities: Foreign currency swaps $ 106 Discounted cash flow Interest rates (USD) 2.18% - 2.45% (a) Interest rates (JPY) .20% - .73% (b) CDS spreads 11 - 147 bps Foreign exchange rates 21.34% (c) 13 Discounted cash flow Interest rates (USD) 2.18% - 2.45% (a) Interest rates (JPY) .20% - .73% (b) CDS spreads 15 - 168 bps 6 Discounted cash flow Interest rates (USD) 2.18% - 2.45% (a) Interest rates (JPY) .20% - .73% (b) Foreign exchange rates 21.34% (c) Total liabilities $ 125 (a) Inputs derived from U.S. long-term rates to accommodate long maturity nature of our swaps (b) Inputs derived from Japan long-term rates to accommodate long maturity nature of our swaps (c) Based on 10 year volatility of JPY/USD exchange rate |
POLICY LIABILITIES (Tables)
POLICY LIABILITIES (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Insurance Loss Reserves [Abstract] | |
Schedule of Liability for Unpaid Claims Adjustment Expense | Changes in the liability for unpaid policy claims were as follows for the three -month periods ended March 31: (In millions) 2017 2016 Unpaid supplemental health claims, beginning of year $ 3,707 $ 3,548 Less reinsurance recoverables 27 26 Net balance, beginning of year 3,680 3,522 Add claims incurred during the year related to: Current year 1,737 1,705 Prior years (111 ) (142 ) Total incurred 1,626 1,563 Less claims paid during the year on claims incurred during: Current year 505 493 Prior years 1,055 1,046 Total paid 1,560 1,539 Effect of foreign exchange rate changes on unpaid claims 80 136 Net balance, end of period 3,826 3,682 Add reinsurance recoverables 29 28 Unpaid supplemental health claims, end of period 3,855 3,710 Unpaid life claims, end of period 375 280 Total liability for unpaid policy claims $ 4,230 $ 3,990 |
REINSURANCE (Tables)
REINSURANCE (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Reinsurance Disclosures [Abstract] | |
Effects of Reinsurance | The following table reconciles direct premium income and direct benefits and claims to net amounts after the effect of reinsurance. Three Months Ended (In millions) 2017 2016 Direct premium income $ 4,724 $ 4,690 Ceded to other companies: Ceded Aflac Japan closed blocks (130 ) (134 ) Other (12 ) (12 ) Assumed from other companies: Retrocession activities 54 56 Other 2 2 Net premium income $ 4,638 $ 4,602 Direct benefits and claims $ 3,129 $ 3,103 Ceded benefits and change in reserves for future benefits: Ceded Aflac Japan closed blocks (122 ) (121 ) Eliminations 13 14 Other (11 ) (10 ) Assumed from other companies: Retrocession activities 54 53 Eliminations (13 ) (14 ) Other 2 0 Benefits and claims, net $ 3,052 $ 3,025 |
NOTES PAYABLE (Tables)
NOTES PAYABLE (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | A summary of notes payable follows: (In millions) March 31, 2017 December 31, 2016 2.65% senior notes paid February 2017 $ 0 $ 649 2.40% senior notes due March 2020 545 547 4.00% senior notes due February 2022 346 348 3.625% senior notes due June 2023 693 696 3.625% senior notes due November 2024 742 745 3.25% senior notes due March 2025 444 445 2.875% senior notes due October 2026 298 298 6.90% senior notes due December 2039 221 220 6.45% senior notes due August 2040 255 254 4.00% senior notes due October 2046 394 394 5.50% subordinated debentures due September 2052 495 486 Yen-denominated senior notes: .932% senior notes due January 2027 (principal amount 60.0 billion yen) 531 0 Yen-denominated loans: Variable interest rate loan due September 2021 (.31% in 2017 and 2016, principal amount 5.0 billion yen) 44 43 Variable interest rate loan due September 2023 (.46% in 2017 and 2016, principal amount 25.0 billion yen) 222 214 Capitalized lease obligations payable through 2024 20 21 Total notes payable $ 5,250 $ 5,360 Amounts in the table above are reported net of debt issuance costs and issuance premiums or discounts, if applicable, that are being amortized over the life of the notes. |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Common Stock Outstanding Roll Forward | The following table is a reconciliation of the number of shares of the Company's common stock for the three -month periods ended March 31 . (In thousands of shares) 2017 2016 Common stock - issued: Balance, beginning of period 671,249 669,723 Exercise of stock options and issuance of restricted shares 434 678 Balance, end of period 671,683 670,401 Treasury stock: Balance, beginning of period 265,439 245,343 Purchases of treasury stock: Open market 8,493 10,152 Other 144 189 Dispositions of treasury stock: Shares issued to AFL Stock Plan (247 ) (311 ) Exercise of stock options (128 ) (64 ) Other (20 ) (111 ) Balance, end of period 273,681 255,198 Shares outstanding, end of period 398,002 415,203 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following table presents the approximate number of share-based awards to purchase shares, on a weighted-average basis, that were considered to be anti-dilutive and were excluded from the calculation of diluted earnings per share for the following periods. Three Months Ended (In thousands) 2017 2016 Anti-dilutive share-based awards 321 2,682 |
Schedule of Accumulated Other Comprehensive Income (Loss) | Reclassifications from Accumulated Other Comprehensive Income The tables below are reconciliations of accumulated other comprehensive income by component for the following periods. Changes in Accumulated Other Comprehensive Income Three Months Ended (In millions) Unrealized Foreign Unrealized Unrealized Pension Liability Adjustment Total Balance, beginning of period $ (1,983 ) $ 4,805 $ (24 ) $ (168 ) $ 2,630 Other comprehensive 333 (341 ) 2 (4 ) (10 ) Amounts reclassified from 0 10 0 2 12 Net current-period other 333 (331 ) 2 (2 ) 2 Balance, end of period $ (1,650 ) $ 4,474 $ (22 ) $ (170 ) $ 2,632 All amounts in the table above are net of tax. Three Months Ended (In millions) Unrealized Foreign Unrealized Unrealized Pension Liability Adjustment Total Balance, beginning of period $ (2,196 ) $ 2,986 $ (26 ) $ (139 ) $ 625 Other comprehensive 612 1,748 2 (1 ) 2,361 Amounts reclassified from 0 (50 ) 0 0 (50 ) Net current-period other 612 1,698 2 (1 ) 2,311 Balance, end of period $ (1,584 ) $ 4,684 $ (24 ) $ (140 ) $ 2,936 All amounts in the table above are net of tax. |
Reclassification Out Of Accumulated Other Comprehensive Income | The tables below summarize the amounts reclassified from each component of accumulated other comprehensive income based on source for the following periods. Reclassifications Out of Accumulated Other Comprehensive Income (In millions) Three Months Ended Details about Accumulated Other Comprehensive Income Components Amount Reclassified from Accumulated Other Comprehensive Income Affected Line Item in the Unrealized gains (losses) on available-for-sale $ (6 ) Sales and redemptions (10 ) Other-than-temporary impairment (16 ) Total before tax 6 Tax (expense) or benefit (1) $ (10 ) Net of tax Amortization of defined benefit pension items: Actuarial gains (losses) $ (3 ) Acquisition and operating expenses (2) Prior service (cost) credit 0 Acquisition and operating expenses (2) 1 Tax (expense) or benefit (1) $ (2 ) Net of tax Total reclassifications for the period $ (12 ) Net of tax (1) Based on 35% tax rate (2) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 11 for additional details). (In millions) Three Months Ended Details about Accumulated Other Comprehensive Income Components Amount Reclassified from Accumulated Other Comprehensive Income Affected Line Item in the Unrealized gains (losses) on available-for-sale $ 91 Sales and redemptions (14 ) Other-than-temporary impairment 77 Total before tax (27 ) Tax (expense) or benefit (1) $ 50 Net of tax Amortization of defined benefit pension items: Actuarial gains (losses) $ (3 ) Acquisition and operating expenses (2) Prior service (cost) credit 3 Acquisition and operating expenses (2) 0 Tax (expense) or benefit (1) $ 0 Net of tax Total reclassifications for the period $ 50 Net of tax (1) Based on 35% tax rate (2) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 11 for additional details). |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Options Outstanding and Exercisable | The following table provides information on stock options outstanding and exercisable at March 31, 2017 . Stock Weighted-Average Aggregate Weighted-Average Outstanding 6,245 4.9 $ 119 $ 53.38 Exercisable 4,504 3.4 102 49.72 |
Schedule of Nonvested Restricted Stock Units Activity | (In thousands of shares) Shares Weighted-Average Grant-Date Fair Value Per Share Restricted stock at December 31, 2016 1,868 $ 61.76 Granted in 2017 489 71.97 Canceled in 2017 (4 ) 65.05 Vested in 2017 (437 ) 62.23 Restricted stock at March 31, 2017 1,916 $ 64.12 |
BENEFIT PLANS (Tables)
BENEFIT PLANS (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Schedule of Net Benefit Costs | Pension and other postretirement benefit expenses, included in acquisition and operating expenses in the consolidated statement of earnings, included the following components: Three Months Ended March 31, Pension Benefits Other Japan U.S. Postretirement Benefits (In millions) 2017 2016 2017 2016 2017 2016 Components of net periodic Service cost $ 5 $ 4 $ 6 $ 6 $ 0 $ 0 Interest cost 1 2 8 8 0 0 Expected return on plan (1 ) (1 ) (6 ) (6 ) 0 0 Amortization of net actuarial 0 0 3 3 0 0 Amortization of prior service 0 0 0 0 0 (3 ) Net periodic (benefit) cost $ 5 $ 5 $ 11 $ 11 $ 0 $ (3 ) |
Summary of Significant Accoun31
Summary of Significant Accounting Policies - Additional Information (Detail) | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Aflac Japan | |||
Significant Accounting Policies [Line Items] | |||
Aflac Japan's percentage of the Company's total revenues | 69.00% | 74.00% | |
Percentage of the Company Assets | 84.00% | 83.00% | |
Upper Limit | |||
Significant Accounting Policies [Line Items] | |||
Estimation of Percent of Leases Within Scope of the Guidance to Total Assets | 1.00% | ||
Estimation of Percent of Revenues Within Scope of the Guidance to Total Revenues | 1.00% |
BUSINESS SEGMENT INFORMATION -
BUSINESS SEGMENT INFORMATION - Operations by Segment - Revenues (Details) $ in Millions | 3 Months Ended | ||
Mar. 31, 2017USD ($)segment | Mar. 31, 2016USD ($) | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Number of Reportable Insurance Business Segments | segment | 2 | ||
Net earned premiums | $ 4,638 | $ 4,602 | |
Net investment income | 794 | 801 | |
Total revenues | 5,309 | 5,451 | |
Realized investment gains (losses), non-operating | [1],[2],[3],[4],[5] | (109) | 40 |
Gain (loss) on change in fair value of derivative, interest rate component, operating | 21 | 22 | |
Aflac Japan | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net earned premiums | 3,194 | 3,179 | |
Net investment income, less amortized hedge costs | [2] | 557 | 590 |
Other income (loss) | 10 | 8 | |
Total revenues | 3,761 | 3,777 | |
Hedge costs | 52 | 32 | |
Aflac U.S. | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net earned premiums | 1,390 | 1,367 | |
Other income (loss) | 1 | 3 | |
Net investment income | 178 | 174 | |
Total revenues | 1,569 | 1,544 | |
Other business segments | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Total revenues | 67 | 65 | |
Total Business Segments | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Total revenues | 5,397 | 5,386 | |
Corporate | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Total revenues | 87 | 67 | |
Intercompany eliminations | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Total revenues | $ (66) | $ (42) | |
[1] | Excluding a gain of $21 and $22 for the three-month periods ended March 31, 2017, and 2016, respectively, related to the interest rate component of the change in fair value of foreign currency swaps on notes payable which is classified as an operating gain when analyzing segment operations | ||
[2] | Hedge costs related to hedging U.S. dollar-denominated investments held in Aflac Japan were $52 and $32 for the three-month periods ended March 31, 2017, and 2016, respectively, and have been reclassified from realized investment gains (losses) and reported as a deduction from net investment income when analyzing segment operations to conform to current year reporting. | ||
[3] | Hedge costs related to hedging U.S. dollar-denominated investments held in Aflac Japan were $52 and $32 for the three-month periods ended March 31, 2017, and 2016, respectively, and have been reclassified from realized investment gains (losses) and reported as a deduction from pretax operating earnings when analyzing segment operations to conform to current year reporting. | ||
[4] | Prior year foreign currency transaction gains and losses have been reclassified from other non-operating income (loss) to realized investment gains (losses) to conform to current-year reporting classifications. These reclassifications had no impact on total earnings before income taxes. | ||
[5] | Prior year foreign currency transaction gains and losses have been reclassified from other non-operating income (loss) to realized investment gains (losses) to conform to current-year reporting classifications. These reclassifications had no impact on total revenues |
BUSINESS SEGMENT INFORMATION 33
BUSINESS SEGMENT INFORMATION - Operations by Segment - Pretax Earnings (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Pretax operating earnings | $ 1,027 | $ 1,077 | |
Realized investment gains (losses), non-operating | [1],[2],[3],[4],[5] | (109) | 40 |
Other non-operating income (loss) | [4] | (20) | 0 |
Earnings before income taxes | 898 | 1,117 | |
Income taxes applicable to pretax operating earnings | 351 | 372 | |
Effect of foreign currency translation on operating earnings | 5 | 13 | |
Gain (loss) on change in fair value of derivative, interest rate component, operating | 21 | 22 | |
Aflac Japan | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Pretax operating earnings | [3] | 769 | 806 |
Hedge costs | 52 | 32 | |
Aflac U.S. | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Pretax operating earnings | 310 | 332 | |
Other business segments | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Pretax operating earnings | 0 | 3 | |
Total Business Segments | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Pretax operating earnings | 1,079 | 1,141 | |
Interest expense, noninsurance operations | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Pretax operating earnings | (29) | (29) | |
Corporate and eliminations | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Pretax operating earnings | $ (23) | $ (35) | |
[1] | Excluding a gain of $21 and $22 for the three-month periods ended March 31, 2017, and 2016, respectively, related to the interest rate component of the change in fair value of foreign currency swaps on notes payable which is classified as an operating gain when analyzing segment operations | ||
[2] | Hedge costs related to hedging U.S. dollar-denominated investments held in Aflac Japan were $52 and $32 for the three-month periods ended March 31, 2017, and 2016, respectively, and have been reclassified from realized investment gains (losses) and reported as a deduction from net investment income when analyzing segment operations to conform to current year reporting. | ||
[3] | Hedge costs related to hedging U.S. dollar-denominated investments held in Aflac Japan were $52 and $32 for the three-month periods ended March 31, 2017, and 2016, respectively, and have been reclassified from realized investment gains (losses) and reported as a deduction from pretax operating earnings when analyzing segment operations to conform to current year reporting. | ||
[4] | Prior year foreign currency transaction gains and losses have been reclassified from other non-operating income (loss) to realized investment gains (losses) to conform to current-year reporting classifications. These reclassifications had no impact on total earnings before income taxes. | ||
[5] | Prior year foreign currency transaction gains and losses have been reclassified from other non-operating income (loss) to realized investment gains (losses) to conform to current-year reporting classifications. These reclassifications had no impact on total revenues |
BUSINESS SEGMENT INFORMATION 34
BUSINESS SEGMENT INFORMATION - Operations by Segment - Assets (Detail) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | $ 133,650 | $ 129,819 |
Aflac Japan | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | 112,023 | 107,858 |
Aflac U.S. | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | 19,817 | 19,453 |
Other business segments | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | 338 | 270 |
Total Business Segments | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | 132,178 | 127,581 |
Corporate | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | 26,024 | 26,476 |
Intercompany eliminations | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | $ (24,552) | $ (24,238) |
INVESTMENTS - Available-For-Sal
INVESTMENTS - Available-For-Sale Investments in Debt Securities, Perpetual Securities and Equity Securities (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | $ 73,076 | $ 69,072 |
Gross Unrealized Gains | 8,504 | 8,722 |
Gross Unrealized Losses | 1,384 | 1,092 |
Fair Value | 80,196 | 76,702 |
Fixed maturities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | 70,261 | 66,363 |
Gross Unrealized Gains | 8,129 | 8,432 |
Gross Unrealized Losses | 1,313 | 1,035 |
Fair Value | 77,077 | 73,760 |
Perpetual securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | 1,563 | 1,506 |
Gross Unrealized Gains | 257 | 176 |
Gross Unrealized Losses | 50 | 49 |
Fair Value | 1,770 | 1,633 |
Equity securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | 1,252 | 1,203 |
Gross Unrealized Gains | 118 | 114 |
Gross Unrealized Losses | 21 | 8 |
Fair Value | 1,349 | 1,309 |
Yen-denominated | Fixed maturities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | 35,815 | 32,459 |
Gross Unrealized Gains | 4,728 | 4,951 |
Gross Unrealized Losses | 489 | 261 |
Fair Value | 40,054 | 37,149 |
Yen-denominated | Equity securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | 668 | 624 |
Gross Unrealized Gains | 63 | 83 |
Gross Unrealized Losses | 10 | 2 |
Fair Value | 721 | 705 |
Dollar-denominated | Fixed maturities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | 34,446 | 33,904 |
Gross Unrealized Gains | 3,401 | 3,481 |
Gross Unrealized Losses | 824 | 774 |
Fair Value | 37,023 | 36,611 |
Dollar-denominated | Equity securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | 584 | 579 |
Gross Unrealized Gains | 55 | 31 |
Gross Unrealized Losses | 11 | 6 |
Fair Value | 628 | 604 |
Japan government and agencies | Yen-denominated | Fixed maturities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | 26,311 | 22,857 |
Gross Unrealized Gains | 3,203 | 3,359 |
Gross Unrealized Losses | 366 | 160 |
Fair Value | 29,148 | 26,056 |
Municipalities | Fixed maturities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | 1,322 | 1,295 |
Municipalities | Yen-denominated | Fixed maturities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | 281 | 246 |
Gross Unrealized Gains | 26 | 29 |
Gross Unrealized Losses | 12 | 8 |
Fair Value | 295 | 267 |
Municipalities | Dollar-denominated | Fixed maturities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | 901 | 894 |
Gross Unrealized Gains | 133 | 142 |
Gross Unrealized Losses | 7 | 8 |
Fair Value | 1,027 | 1,028 |
Mortgage- and asset-backed securities | Fixed maturities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | 504 | 1,337 |
Mortgage- and asset-backed securities | Yen-denominated | Fixed maturities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | 272 | 1,096 |
Gross Unrealized Gains | 32 | 33 |
Gross Unrealized Losses | 0 | 8 |
Fair Value | 304 | 1,121 |
Mortgage- and asset-backed securities | Dollar-denominated | Fixed maturities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | 184 | 196 |
Gross Unrealized Gains | 16 | 20 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 200 | 216 |
Public utilities | Fixed maturities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | 7,843 | 7,683 |
Public utilities | Yen-denominated | Fixed maturities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | 1,637 | 1,533 |
Gross Unrealized Gains | 324 | 318 |
Gross Unrealized Losses | 6 | 3 |
Fair Value | 1,955 | 1,848 |
Public utilities | Dollar-denominated | Fixed maturities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | 5,296 | 5,205 |
Gross Unrealized Gains | 669 | 690 |
Gross Unrealized Losses | 77 | 60 |
Fair Value | 5,888 | 5,835 |
Sovereign and supranational | Fixed maturities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | 1,386 | 1,469 |
Sovereign and supranational | Yen-denominated | Fixed maturities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | 846 | 862 |
Gross Unrealized Gains | 133 | 186 |
Gross Unrealized Losses | 6 | 5 |
Fair Value | 973 | 1,043 |
Sovereign and supranational | Dollar-denominated | Fixed maturities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | 326 | 335 |
Gross Unrealized Gains | 87 | 91 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 413 | 426 |
Banks/financial institutions | Fixed maturities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | 6,545 | 6,063 |
Banks/financial institutions | Perpetual securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | 1,551 | 1,420 |
Banks/financial institutions | Yen-denominated | Fixed maturities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | 3,039 | 2,673 |
Gross Unrealized Gains | 414 | 403 |
Gross Unrealized Losses | 83 | 74 |
Fair Value | 3,370 | 3,002 |
Banks/financial institutions | Yen-denominated | Perpetual securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | 1,315 | 1,266 |
Gross Unrealized Gains | 208 | 128 |
Gross Unrealized Losses | 50 | 49 |
Fair Value | 1,473 | 1,345 |
Banks/financial institutions | Dollar-denominated | Fixed maturities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | 2,680 | 2,570 |
Gross Unrealized Gains | 513 | 507 |
Gross Unrealized Losses | 18 | 16 |
Fair Value | 3,175 | 3,061 |
Banks/financial institutions | Dollar-denominated | Perpetual securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | 52 | 51 |
Gross Unrealized Gains | 26 | 24 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 78 | 75 |
Other corporate | Fixed maturities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | 30,157 | 29,699 |
Other corporate | Perpetual securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | 219 | 213 |
Other corporate | Yen-denominated | Fixed maturities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | 3,429 | 3,192 |
Gross Unrealized Gains | 596 | 623 |
Gross Unrealized Losses | 16 | 3 |
Fair Value | 4,009 | 3,812 |
Other corporate | Yen-denominated | Perpetual securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | 196 | 189 |
Gross Unrealized Gains | 23 | 24 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 219 | 213 |
Other corporate | Dollar-denominated | Fixed maturities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | 24,898 | 24,556 |
Gross Unrealized Gains | 1,972 | 2,021 |
Gross Unrealized Losses | 722 | 690 |
Fair Value | 26,148 | 25,887 |
U.S. government and agencies | Dollar-denominated | Fixed maturities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | 161 | 148 |
Gross Unrealized Gains | 11 | 10 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | $ 172 | $ 158 |
INVESTMENTS - Held-to-Maturity
INVESTMENTS - Held-to-Maturity Investments in Debt Securities (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Securities held to maturity, fixed maturities, amortized cost | $ 34,401 | $ 33,350 |
Gross Unrealized Gains | 6,553 | 6,735 |
Gross Unrealized Losses | 31 | 64 |
Fair Value | 40,923 | 40,021 |
Fixed maturities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Fair Value | 40,923 | 40,021 |
Yen-denominated | Fixed maturities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Securities held to maturity, fixed maturities, amortized cost | 34,401 | 33,350 |
Gross Unrealized Gains | 6,553 | 6,735 |
Gross Unrealized Losses | 31 | 64 |
Fair Value | 40,923 | 40,021 |
Japan government and agencies | Yen-denominated | Fixed maturities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Securities held to maturity, fixed maturities, amortized cost | 21,493 | 20,702 |
Gross Unrealized Gains | 5,114 | 5,338 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 26,607 | 26,040 |
Municipalities | Fixed maturities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Securities held to maturity, fixed maturities, amortized cost | 363 | 350 |
Fair Value | 467 | 457 |
Municipalities | Yen-denominated | Fixed maturities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Securities held to maturity, fixed maturities, amortized cost | 363 | 350 |
Gross Unrealized Gains | 104 | 107 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 467 | 457 |
Mortgage- and asset-backed securities | Fixed maturities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Securities held to maturity, fixed maturities, amortized cost | 30 | 30 |
Fair Value | 32 | 32 |
Mortgage- and asset-backed securities | Yen-denominated | Fixed maturities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Securities held to maturity, fixed maturities, amortized cost | 30 | 30 |
Gross Unrealized Gains | 2 | 2 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 32 | 32 |
Public utilities | Fixed maturities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Securities held to maturity, fixed maturities, amortized cost | 3,324 | 3,201 |
Fair Value | 3,693 | 3,536 |
Public utilities | Yen-denominated | Fixed maturities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Securities held to maturity, fixed maturities, amortized cost | 3,324 | 3,201 |
Gross Unrealized Gains | 376 | 358 |
Gross Unrealized Losses | 7 | 23 |
Fair Value | 3,693 | 3,536 |
Sovereign and supranational | Fixed maturities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Securities held to maturity, fixed maturities, amortized cost | 2,702 | 2,602 |
Fair Value | 3,009 | 2,877 |
Sovereign and supranational | Yen-denominated | Fixed maturities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Securities held to maturity, fixed maturities, amortized cost | 2,702 | 2,602 |
Gross Unrealized Gains | 307 | 283 |
Gross Unrealized Losses | 0 | 8 |
Fair Value | 3,009 | 2,877 |
Banks/financial institutions | Fixed maturities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Securities held to maturity, fixed maturities, amortized cost | 3,650 | 3,731 |
Fair Value | 3,830 | 3,900 |
Banks/financial institutions | Yen-denominated | Fixed maturities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Securities held to maturity, fixed maturities, amortized cost | 3,650 | 3,731 |
Gross Unrealized Gains | 204 | 195 |
Gross Unrealized Losses | 24 | 26 |
Fair Value | 3,830 | 3,900 |
Other corporate | Fixed maturities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Securities held to maturity, fixed maturities, amortized cost | 2,839 | 2,734 |
Fair Value | 3,285 | 3,179 |
Other corporate | Yen-denominated | Fixed maturities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Securities held to maturity, fixed maturities, amortized cost | 2,839 | 2,734 |
Gross Unrealized Gains | 446 | 452 |
Gross Unrealized Losses | 0 | 7 |
Fair Value | $ 3,285 | $ 3,179 |
INVESTMENTS - Additional Inform
INVESTMENTS - Additional Information (Detail) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2017USD ($)investmentissuer | Mar. 31, 2016investment | Dec. 31, 2016USD ($)issuer | |
Schedule of Investments [Line Items] | |||
Held to maturity securities transferred to available for sale securities, number of investments | investment | 0 | 0 | |
Middle Market Loan Program Unfunded Amount | $ 135 | $ 91 | |
Middle market loan commitment | $ 658 | ||
Percentage that the lending policy requires that the fair value of the securities and/or unrestricted cash received as collateral be of the fair value of the loaned securities | 102.00% | ||
Allowance for loan losses for commercial mortgage loans and middle market loans | $ 4 | 3 | |
Commercial mortgage loan commitments | 18 | ||
Parent Company and Other Business Segments | |||
Schedule of Investments [Line Items] | |||
Securities available for sale, fixed maturities, amortized cost | 630 | ||
Securities available for sale, fixed maturities, fair value | 642 | ||
Variable Interest Entity, Not Consolidated | |||
Schedule of Investments [Line Items] | |||
Securities available for sale, fixed maturities, amortized cost | 4,823 | 4,729 | |
Securities available for sale, fixed maturities, fair value | $ 5,354 | $ 5,261 | |
Number of issuers of VIEs not-consolidated | issuer | 149 | 145 |
INVESTMENTS - Contractual Matur
INVESTMENTS - Contractual Maturities of Investments in Fixed Maturities (Detail) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Held to maturity: | ||
Total fixed maturities held to maturity, amortized cost | $ 34,401 | $ 33,350 |
Held to maturity: | ||
Total fixed maturities held to maturity, fair value | 40,923 | $ 40,021 |
Aflac Japan | ||
Available for sale: | ||
Due in one year or less | 145 | |
Due after one year through five years | 3,561 | |
Due after five years through 10 years | 9,846 | |
Due after 10 years | 43,392 | |
Mortgage- and asset-backed securities | 316 | |
Total fixed maturities available for sale, amortized cost | 57,260 | |
Held to maturity: | ||
Due after one year through five years | 2,086 | |
Due after five years through 10 years | 1,645 | |
Due after 10 years | 30,640 | |
Mortgage- and asset-backed securities | 30 | |
Total fixed maturities held to maturity, amortized cost | 34,401 | |
Available for sale: | ||
Due in one year or less | 161 | |
Due after one year through five years | 3,788 | |
Due after five years through 10 years | 10,093 | |
Due after 10 years | 48,447 | |
Mortgage- and asset-backed securities | 361 | |
Total fixed maturities available for sale, fair value | 62,850 | |
Held to maturity: | ||
Due after one year through five years | 2,193 | |
Due after five years through 10 years | 1,813 | |
Due after 10 years | 36,884 | |
Mortgage- and asset-backed securities | 33 | |
Total fixed maturities held to maturity, fair value | 40,923 | |
Aflac U.S. | ||
Available for sale: | ||
Due in one year or less | 74 | |
Due after one year through five years | 664 | |
Due after five years through 10 years | 3,128 | |
Due after 10 years | 8,462 | |
Mortgage- and asset-backed securities | 43 | |
Total fixed maturities available for sale, amortized cost | 12,371 | |
Held to maturity: | ||
Due after one year through five years | 0 | |
Due after five years through 10 years | 0 | |
Due after 10 years | 0 | |
Mortgage- and asset-backed securities | 0 | |
Total fixed maturities held to maturity, amortized cost | 0 | |
Available for sale: | ||
Due in one year or less | 77 | |
Due after one year through five years | 716 | |
Due after five years through 10 years | 3,324 | |
Due after 10 years | 9,421 | |
Mortgage- and asset-backed securities | 47 | |
Total fixed maturities available for sale, fair value | 13,585 | |
Held to maturity: | ||
Due after one year through five years | 0 | |
Due after five years through 10 years | 0 | |
Due after 10 years | 0 | |
Mortgage- and asset-backed securities | 0 | |
Total fixed maturities held to maturity, fair value | $ 0 |
INVESTMENTS - Economic Maturiti
INVESTMENTS - Economic Maturities of Investments in Perpetual Securities (Detail) $ in Millions | Mar. 31, 2017USD ($) |
Aflac Japan | |
Investments Classified by Economic Maturity Date [Line Items] | |
Due in one year or less | $ 90 |
Due after one year through five years | 196 |
Due after 10 years | 1,238 |
Total perpetual securities available for sale, amortized cost | 1,524 |
Due in one year or less | 87 |
Due after one year through five years | 219 |
Due after 10 years | 1,407 |
Total perpetual securities available for sale, fair value | 1,713 |
Aflac U.S. | |
Investments Classified by Economic Maturity Date [Line Items] | |
Due in one year or less | 0 |
Due after one year through five years | 0 |
Due after 10 years | 39 |
Total perpetual securities available for sale, amortized cost | 39 |
Due in one year or less | 0 |
Due after one year through five years | 0 |
Due after 10 years | 57 |
Total perpetual securities available for sale, fair value | $ 57 |
INVESTMENTS - Investment Exposu
INVESTMENTS - Investment Exposures Individually Exceeded 10% of Shareholders' Equity (Details) - Japan National Government - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | ||
Summary of Investment Holdings [Line Items] | |||
Credit Rating | [1] | A | A |
Amortized Cost | [1] | $ 47,131 | $ 42,931 |
Fair Value | [1] | $ 54,971 | $ 51,345 |
[1] | Japan Government Bonds (JGBs) or JGB-backed securities |
INVESTMENTS - Information Regar
INVESTMENTS - Information Regarding Pretax Realized Gains and Losses From Investments (Detail) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | |||
Gain (Loss) on Investments [Line Items] | ||||
Other-than-temporary impairment losses realized | $ (10) | $ (14) | ||
Derivative gains (losses) | (52) | (4) | ||
Foreign currency gains (losses) | (71) | (43) | ||
Total realized investment gains (losses) | (140) | 30 | ||
Derivatives and other | ||||
Gain (Loss) on Investments [Line Items] | ||||
Total realized investment gains (losses) | (123) | (47) | ||
Fixed maturities | ||||
Gain (Loss) on Investments [Line Items] | ||||
Total realized investment gains (losses) | (36) | 69 | ||
Perpetual securities | ||||
Gain (Loss) on Investments [Line Items] | ||||
Total realized investment gains (losses) | 0 | 8 | ||
Equity securities | ||||
Gain (Loss) on Investments [Line Items] | ||||
Net gains (losses) from redemptions(1) | 25 | 0 | ||
Other-than-temporary impairment losses realized | (6) | 0 | ||
Total realized investment gains (losses) | 19 | 0 | ||
Available-for-sale securities | Fixed maturities | ||||
Gain (Loss) on Investments [Line Items] | ||||
Gross gains from sales | 12 | 2 | ||
Gross losses from sales(1) | [1] | (15) | (4) | |
Net gains (losses) from redemptions(1) | [1] | (29) | 83 | |
Other-than-temporary impairment losses realized | [1] | (4) | (12) | |
Available-for-sale securities | Perpetual securities | ||||
Gain (Loss) on Investments [Line Items] | ||||
Net gains (losses) from redemptions(1) | 0 | 10 | [1] | |
Other-than-temporary impairment losses realized | $ 0 | $ (2) | [1] | |
[1] | Primarily driven by foreign exchange |
INVESTMENTS - Net Effect on Sha
INVESTMENTS - Net Effect on Shareholders' Equity of Unrealized Gains and Losses from Investment Securities (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Investments [Abstract] | ||
Unrealized Gains (Losses) on Available-for-sale Securities | $ 7,120 | $ 7,630 |
Deferred income taxes | (2,646) | (2,825) |
Shareholders' equity, unrealized gains (losses) on investment securities | $ 4,474 | $ 4,805 |
INVESTMENTS - Fair Value and Gr
INVESTMENTS - Fair Value and Gross Unrealized Losses for Securities That Have Been in Continuous Unrealized Loss Position (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Investments, Unrealized Loss Position [Line Items] | ||
Total Fair Value | $ 21,897 | $ 20,275 |
Total Unrealized Losses | 1,415 | 1,156 |
Less than 12 months Fair Value | 16,067 | 14,743 |
Less than 12 months Unrealized Losses | 768 | 621 |
12 months or longer Fair Value | 5,830 | 5,532 |
12 months or longer Unrealized Losses | 647 | 535 |
Fixed maturities | ||
Investments, Unrealized Loss Position [Line Items] | ||
Total Fair Value | 21,149 | 19,536 |
Total Unrealized Losses | 1,344 | 1,099 |
Less than 12 months Fair Value | 15,778 | 14,398 |
Less than 12 months Unrealized Losses | 755 | 612 |
12 months or longer Fair Value | 5,371 | 5,138 |
12 months or longer Unrealized Losses | 589 | 487 |
Perpetual securities | ||
Investments, Unrealized Loss Position [Line Items] | ||
Total Fair Value | 409 | 479 |
Total Unrealized Losses | 50 | 49 |
Less than 12 months Fair Value | 0 | 85 |
Less than 12 months Unrealized Losses | 0 | 1 |
12 months or longer Fair Value | 409 | 394 |
12 months or longer Unrealized Losses | 50 | 48 |
Equity securities | ||
Investments, Unrealized Loss Position [Line Items] | ||
Total Fair Value | 339 | 260 |
Total Unrealized Losses | 21 | 8 |
Less than 12 months Fair Value | 289 | 260 |
Less than 12 months Unrealized Losses | 13 | 8 |
12 months or longer Fair Value | 50 | 0 |
12 months or longer Unrealized Losses | 8 | 0 |
Yen-denominated | Fixed maturities | Japan government and agencies | ||
Investments, Unrealized Loss Position [Line Items] | ||
Total Fair Value | 5,940 | 3,958 |
Total Unrealized Losses | 366 | 160 |
Less than 12 months Fair Value | 5,940 | 3,958 |
Less than 12 months Unrealized Losses | 366 | 160 |
12 months or longer Fair Value | 0 | 0 |
12 months or longer Unrealized Losses | 0 | 0 |
Yen-denominated | Fixed maturities | Municipalities | ||
Investments, Unrealized Loss Position [Line Items] | ||
Total Fair Value | 132 | 105 |
Total Unrealized Losses | 12 | 8 |
Less than 12 months Fair Value | 132 | 105 |
Less than 12 months Unrealized Losses | 12 | 8 |
12 months or longer Fair Value | 0 | 0 |
12 months or longer Unrealized Losses | 0 | 0 |
Yen-denominated | Fixed maturities | Mortgage- and asset-backed securities | ||
Investments, Unrealized Loss Position [Line Items] | ||
Total Fair Value | 713 | |
Total Unrealized Losses | 8 | |
Less than 12 months Fair Value | 713 | |
Less than 12 months Unrealized Losses | 8 | |
12 months or longer Fair Value | 0 | |
12 months or longer Unrealized Losses | 0 | |
Yen-denominated | Fixed maturities | Public utilities | ||
Investments, Unrealized Loss Position [Line Items] | ||
Total Fair Value | 325 | 635 |
Total Unrealized Losses | 13 | 26 |
Less than 12 months Fair Value | 127 | 347 |
Less than 12 months Unrealized Losses | 6 | 14 |
12 months or longer Fair Value | 198 | 288 |
12 months or longer Unrealized Losses | 7 | 12 |
Yen-denominated | Fixed maturities | Sovereign and supranational | ||
Investments, Unrealized Loss Position [Line Items] | ||
Total Fair Value | 39 | 244 |
Total Unrealized Losses | 6 | 13 |
Less than 12 months Fair Value | 39 | 38 |
Less than 12 months Unrealized Losses | 6 | 5 |
12 months or longer Fair Value | 0 | 206 |
12 months or longer Unrealized Losses | 0 | 8 |
Yen-denominated | Fixed maturities | Banks/financial institutions | ||
Investments, Unrealized Loss Position [Line Items] | ||
Total Fair Value | 1,531 | 1,521 |
Total Unrealized Losses | 107 | 100 |
Less than 12 months Fair Value | 646 | 636 |
Less than 12 months Unrealized Losses | 34 | 19 |
12 months or longer Fair Value | 885 | 885 |
12 months or longer Unrealized Losses | 73 | 81 |
Yen-denominated | Fixed maturities | Other corporate | ||
Investments, Unrealized Loss Position [Line Items] | ||
Total Fair Value | 415 | 321 |
Total Unrealized Losses | 16 | 10 |
Less than 12 months Fair Value | 415 | 321 |
Less than 12 months Unrealized Losses | 16 | 10 |
12 months or longer Fair Value | 0 | 0 |
12 months or longer Unrealized Losses | 0 | 0 |
Yen-denominated | Perpetual securities | ||
Investments, Unrealized Loss Position [Line Items] | ||
Total Fair Value | 409 | 479 |
Total Unrealized Losses | 50 | 49 |
Less than 12 months Fair Value | 0 | 85 |
Less than 12 months Unrealized Losses | 0 | 1 |
12 months or longer Fair Value | 409 | 394 |
12 months or longer Unrealized Losses | 50 | 48 |
Yen-denominated | Equity securities | ||
Investments, Unrealized Loss Position [Line Items] | ||
Total Fair Value | 208 | 49 |
Total Unrealized Losses | 10 | 2 |
Less than 12 months Fair Value | 172 | 49 |
Less than 12 months Unrealized Losses | 5 | 2 |
12 months or longer Fair Value | 36 | 0 |
12 months or longer Unrealized Losses | 5 | 0 |
Dollar-denominated | Fixed maturities | Municipalities | ||
Investments, Unrealized Loss Position [Line Items] | ||
Total Fair Value | 45 | 44 |
Total Unrealized Losses | 7 | 8 |
Less than 12 months Fair Value | 0 | 0 |
Less than 12 months Unrealized Losses | 0 | 0 |
12 months or longer Fair Value | 45 | 44 |
12 months or longer Unrealized Losses | 7 | 8 |
Dollar-denominated | Fixed maturities | Public utilities | ||
Investments, Unrealized Loss Position [Line Items] | ||
Total Fair Value | 1,642 | 1,265 |
Total Unrealized Losses | 77 | 60 |
Less than 12 months Fair Value | 1,124 | 790 |
Less than 12 months Unrealized Losses | 37 | 32 |
12 months or longer Fair Value | 518 | 475 |
12 months or longer Unrealized Losses | 40 | 28 |
Dollar-denominated | Fixed maturities | Banks/financial institutions | ||
Investments, Unrealized Loss Position [Line Items] | ||
Total Fair Value | 390 | 268 |
Total Unrealized Losses | 18 | 16 |
Less than 12 months Fair Value | 309 | 238 |
Less than 12 months Unrealized Losses | 6 | 10 |
12 months or longer Fair Value | 81 | 30 |
12 months or longer Unrealized Losses | 12 | 6 |
Dollar-denominated | Fixed maturities | Other corporate | ||
Investments, Unrealized Loss Position [Line Items] | ||
Total Fair Value | 10,690 | 10,462 |
Total Unrealized Losses | 722 | 690 |
Less than 12 months Fair Value | 7,046 | 7,252 |
Less than 12 months Unrealized Losses | 272 | 346 |
12 months or longer Fair Value | 3,644 | 3,210 |
12 months or longer Unrealized Losses | 450 | 344 |
Dollar-denominated | Equity securities | ||
Investments, Unrealized Loss Position [Line Items] | ||
Total Fair Value | 131 | 211 |
Total Unrealized Losses | 11 | 6 |
Less than 12 months Fair Value | 117 | 211 |
Less than 12 months Unrealized Losses | 8 | 6 |
12 months or longer Fair Value | 14 | 0 |
12 months or longer Unrealized Losses | $ 3 | $ 0 |
INVESTMENTS - Other Investments
INVESTMENTS - Other Investments (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 | |
Investment Holdings [Line Items] | |||
Other Investments | [1] | $ 1,701 | $ 1,450 |
Commercial mortgage loans | |||
Investment Holdings [Line Items] | |||
Other Investments | 870 | 855 | |
Middle market loans | |||
Investment Holdings [Line Items] | |||
Other Investments | 439 | 319 | |
Short-term investments | |||
Investment Holdings [Line Items] | |||
Other Investments | 141 | 89 | |
Policy loans | |||
Investment Holdings [Line Items] | |||
Other Investments | 197 | 184 | |
Other investments | |||
Investment Holdings [Line Items] | |||
Other Investments | $ 54 | $ 3 | |
[1] | Includes $926 in 2017 and $819 in 2016 of loan receivables from consolidated variable interest entities |
INVESTMENTS - Investments in Co
INVESTMENTS - Investments in Consolidated Variable Interest Entities (Detail) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 | |
Variable Interest Entity [Line Items] | |||
Other Investments, amortized cost | [1] | $ 1,701 | $ 1,450 |
Asset derivatives | 580 | 1,207 | |
Assets, fair value | 85,122 | 83,044 | |
Liability derivatives | 1,099 | 1,998 | |
Liabilities | 113,310 | 109,337 | |
Liabilities, fair value disclosure | 1,099 | 1,998 | |
Variable Interest Entity, Consolidated | |||
Variable Interest Entity [Line Items] | |||
Securities available for sale, fixed maturities, amortized cost | 4,143 | 4,168 | |
Securities available for sale, fixed maturities, fair value | 4,964 | 4,982 | |
Securities available for sale, perpetual securities, amortized cost | 246 | 237 | |
Securities available for sale, perpetual securities, fair value | 215 | 208 | |
Available-for-sale equity securities, amortized cost basis | 1,013 | 972 | |
Available-for-sale securities, equity securities | 1,078 | 1,044 | |
Other Investments, amortized cost | [2] | 926 | 819 |
Other investments, fair value | [2] | 906 | 789 |
Asset derivative, amortized cost | [3] | 146 | 127 |
Asset derivatives | [3] | 146 | 127 |
Assets, amortized cost | 6,474 | 6,323 | |
Assets, fair value | 7,309 | 7,150 | |
Liability derivatives, amortized cost | [3] | 125 | 146 |
Liability derivatives | [3] | 125 | 146 |
Liabilities | 125 | 146 | |
Liabilities, fair value disclosure | $ 125 | $ 146 | |
[1] | Includes $926 in 2017 and $819 in 2016 of loan receivables from consolidated variable interest entities | ||
[2] | Consists of CMLs and MMLs | ||
[3] | Consist entirely of derivatives |
INVESTMENTS - Investments in Va
INVESTMENTS - Investments in Variable Interest Entities Not Consolidated (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 | |
Variable Interest Entity [Line Items] | |||
Securities held to maturity, fixed maturities, amortized cost | $ 34,401 | $ 33,350 | |
Securities held to maturity, fixed maturities, fair value | 40,923 | 40,021 | |
Other Investments | [1] | 1,701 | 1,450 |
Assets, fair value | 85,122 | 83,044 | |
Variable Interest Entity, Not Consolidated | |||
Variable Interest Entity [Line Items] | |||
Securities available for sale, fixed maturities, amortized cost | 4,823 | 4,729 | |
Securities available for sale, fixed maturities, fair value | 5,354 | 5,261 | |
Securities available for sale, perpetual securities, amortized cost | 178 | 172 | |
Securities available for sale, perpetual securities, fair value | 230 | 200 | |
Securities held to maturity, fixed maturities, amortized cost | 2,660 | 2,563 | |
Securities held to maturity, fixed maturities, fair value | 3,039 | 2,948 | |
Other Investments | 52 | 1 | |
Other investments, fair value | 52 | 1 | |
Assets, amortized cost | 7,713 | 7,465 | |
Assets, fair value | $ 8,675 | $ 8,410 | |
[1] | Includes $926 in 2017 and $819 in 2016 of loan receivables from consolidated variable interest entities |
INVESTMENTS - Securities Lendin
INVESTMENTS - Securities Lending Transactions Accounted for as Secured Borrowings (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 | |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Securities lending transactions | $ 1,482 | $ 526 | |
Gross amount of recognized liabilities for securities lending | 1,482 | 526 | |
Amounts related to agreements not included in offsetting disclosure in Note 4 | 0 | 0 | |
Japan government and agencies | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Securities lending transactions | 885 | ||
Public utilities | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Securities lending transactions | 87 | 62 | |
Banks/financial institutions | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Securities lending transactions | 38 | 34 | |
Other corporate | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Securities lending transactions | 472 | 430 | |
Maturity Overnight and Continuous | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Securities lending transactions | [1] | 597 | 526 |
Maturity Overnight and Continuous | Japan government and agencies | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Securities lending transactions | [1] | 0 | |
Maturity Overnight and Continuous | Public utilities | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Securities lending transactions | [1] | 87 | 62 |
Maturity Overnight and Continuous | Banks/financial institutions | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Securities lending transactions | [1] | 38 | 34 |
Maturity Overnight and Continuous | Other corporate | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Securities lending transactions | [1] | 472 | 430 |
Maturity up to 30 Days | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Securities lending transactions | 885 | 0 | |
Maturity up to 30 Days | Japan government and agencies | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Securities lending transactions | 885 | ||
Maturity up to 30 Days | Public utilities | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Securities lending transactions | 0 | 0 | |
Maturity up to 30 Days | Banks/financial institutions | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Securities lending transactions | 0 | 0 | |
Maturity up to 30 Days | Other corporate | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Securities lending transactions | $ 0 | $ 0 | |
[1] | These securities are pledged as collateral under our U.S. securities lending program and can be called at our discretion; therefore, they are classified as Overnight and Continuous. |
DERIVATIVE INSTRUMENTS - Additi
DERIVATIVE INSTRUMENTS - Additional Information (Detail) $ in Millions, ¥ in Billions | 3 Months Ended | |||
Mar. 31, 2017USD ($)yrcounterpartiescurrency | Mar. 31, 2016USD ($) | Mar. 31, 2017JPY (¥)yrcounterpartiescurrency | Dec. 31, 2016USD ($) | |
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||||
Number of currencies related to foreign currency swaps | currency | 1 | 1 | ||
Hedging activity weighted-average period (in years) | yr | 9 | 9 | ||
Number of counterparties | counterparties | 16 | 16 | ||
Number of counterparties that comprise majority of aggregate notional amount of swaps | counterparties | 5 | 5 | ||
Percentage of notional amount of swaps from certain number of counterparties | 67.00% | 67.00% | ||
Derivative, Net Liability Position, Aggregate Fair Value | $ 640 | $ 1,200 | ||
Notional Amount of Derivatives | 34,451 | 43,927 | ||
Cash flow hedges | ||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||||
Notional Amount of Derivatives | 75 | $ 75 | ||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 0 | $ 0 | ||
2.40% senior notes due March 2020 | ||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||||
Debt instrument, principal amount | 550 | |||
4.00% senior notes due February 2022 | ||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||||
Debt instrument, principal amount | 350 | |||
3.625% senior notes due June 2023 | ||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||||
Debt instrument, principal amount | 700 | |||
3.625% senior notes due November 2024 | ||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||||
Debt instrument, principal amount | 750 | |||
3.25% senior notes due March 2025 | ||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||||
Debt instrument, principal amount | 450 | |||
5.50% subordinated notes due September 2052 | ||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||||
Debt instrument, principal amount | 500 | |||
Future profit repatriation | Foreign currency forwards and options | ||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||||
Notional Amount of Derivatives | ¥ | ¥ 130.1 | |||
Middle market loans | Foreign currency forwards | ||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||||
Notional Amount of Derivatives | 198 | |||
Commercial mortgage loans | Foreign currency forwards | ||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||||
Notional Amount of Derivatives | $ 780 |
DERIVATIVE INSTRUMENTS - Summar
DERIVATIVE INSTRUMENTS - Summary of Balance Sheet Classification of Derivative Fair Value Amounts, as well as Gross Asset and Liability Fair Value Amounts (Detail) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Derivatives, Fair Value [Line Items] | ||
Net Derivatives Notional Amount | $ 34,451 | $ 43,927 |
Derivative asset, fair value, gross asset including not subject to master netting arrangement | 580 | 1,207 |
Derivative liability, fair value, gross liability including not subject to master netting arrangement | (1,099) | (1,998) |
Asset derivatives fair value | 434 | 1,080 |
Liability derivatives fair value | (974) | (1,852) |
Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Net Derivatives Notional Amount | 14,115 | 18,329 |
Asset derivatives fair value | 580 | 1,207 |
Liability derivatives fair value | 0 | 0 |
Other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Net Derivatives Notional Amount | 20,336 | 25,598 |
Asset derivatives fair value | 0 | 0 |
Liability derivatives fair value | (1,099) | (1,998) |
Cash flow hedges | ||
Derivatives, Fair Value [Line Items] | ||
Net Derivatives Notional Amount | 75 | 75 |
Asset derivatives fair value | 0 | 0 |
Liability derivatives fair value | (6) | (10) |
Cash flow hedges | Foreign currency swaps | ||
Derivatives, Fair Value [Line Items] | ||
Net Derivatives Notional Amount | 75 | 75 |
Asset derivatives fair value | 0 | 0 |
Liability derivatives fair value | (6) | (10) |
Fair value hedges | ||
Derivatives, Fair Value [Line Items] | ||
Net Derivatives Notional Amount | 15,265 | 15,189 |
Asset derivatives fair value | 15 | 2 |
Liability derivatives fair value | (432) | (791) |
Fair value hedges | Foreign currency forwards | ||
Derivatives, Fair Value [Line Items] | ||
Net Derivatives Notional Amount | 9,705 | 10,965 |
Asset derivatives fair value | 10 | 0 |
Liability derivatives fair value | (428) | (759) |
Fair value hedges | Foreign currency options | ||
Derivatives, Fair Value [Line Items] | ||
Net Derivatives Notional Amount | 5,560 | 4,224 |
Asset derivatives fair value | 5 | 2 |
Liability derivatives fair value | (4) | (32) |
Net investment hedge | ||
Derivatives, Fair Value [Line Items] | ||
Net Derivatives Notional Amount | 1,160 | 1,052 |
Asset derivatives fair value | 20 | 46 |
Liability derivatives fair value | (22) | (19) |
Net investment hedge | Foreign currency forwards | ||
Derivatives, Fair Value [Line Items] | ||
Net Derivatives Notional Amount | 236 | 209 |
Asset derivatives fair value | 0 | 5 |
Liability derivatives fair value | (4) | (2) |
Net investment hedge | Foreign currency options | ||
Derivatives, Fair Value [Line Items] | ||
Net Derivatives Notional Amount | 924 | 843 |
Asset derivatives fair value | 20 | 41 |
Liability derivatives fair value | (18) | (17) |
Non-qualifying strategies | ||
Derivatives, Fair Value [Line Items] | ||
Net Derivatives Notional Amount | 17,951 | 27,611 |
Asset derivatives fair value | 545 | 1,159 |
Liability derivatives fair value | (639) | (1,178) |
Non-qualifying strategies | Foreign currency swaps | ||
Derivatives, Fair Value [Line Items] | ||
Net Derivatives Notional Amount | 5,890 | 6,266 |
Asset derivatives fair value | 318 | 490 |
Liability derivatives fair value | (218) | (220) |
Non-qualifying strategies | Foreign currency forwards | ||
Derivatives, Fair Value [Line Items] | ||
Net Derivatives Notional Amount | 11,972 | 21,218 |
Asset derivatives fair value | 225 | 667 |
Liability derivatives fair value | (421) | (956) |
Non-qualifying strategies | Foreign currency options | ||
Derivatives, Fair Value [Line Items] | ||
Net Derivatives Notional Amount | 0 | 41 |
Asset derivatives fair value | 0 | 0 |
Liability derivatives fair value | 0 | (2) |
Non-qualifying strategies | Credit default swaps | ||
Derivatives, Fair Value [Line Items] | ||
Net Derivatives Notional Amount | 89 | 86 |
Asset derivatives fair value | 2 | 2 |
Liability derivatives fair value | $ 0 | $ 0 |
DERIVATIVE INSTRUMENTS - Gains
DERIVATIVE INSTRUMENTS - Gains (Losses) Recognized on Fair Value Hedging Relationships (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Fixed-maturity securities and equity securities | Foreign currency forwards | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total gains (losses) recognized for derivatives | $ 341 | |
Gains (losses) on derivatives excluded from effectiveness testing | (48) | |
Gains (losses) on derivatives included in effectiveness testing | 389 | |
Gains (losses) recognized for hedged items | (372) | |
Ineffectiveness recognized for fair value hedge | 17 | |
Fixed maturities | Foreign currency forwards | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total gains (losses) recognized for derivatives | $ 857 | |
Gains (losses) on derivatives excluded from effectiveness testing | (44) | |
Gains (losses) on derivatives included in effectiveness testing | 901 | |
Gains (losses) recognized for hedged items | (882) | |
Ineffectiveness recognized for fair value hedge | 19 | |
Fixed maturities | Foreign currency options | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total gains (losses) recognized for derivatives | 24 | (1) |
Gains (losses) on derivatives excluded from effectiveness testing | 13 | (1) |
Gains (losses) on derivatives included in effectiveness testing | 11 | 0 |
Gains (losses) recognized for hedged items | (10) | 0 |
Ineffectiveness recognized for fair value hedge | $ 1 | $ 0 |
DERIVATIVE INSTRUMENTS - Deriva
DERIVATIVE INSTRUMENTS - Derivatives and Hedging Instruments Gain (Loss) Summary (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Unrealized foreign currency translation gains (losses) during period | $ 375 | $ 689 | |
Derivative and other gains (losses) | (52) | (4) | |
Derivative and non-derivative hedging instruments gain loss recognized in other comprehensive income effective portion before tax | [1] | (47) | (78) |
Cash flow hedges | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net Realized Investment Gains (Losses) Recognized in Income on Derivative (Ineffective Portion) | 0 | 0 | |
Gain (Loss) Recognized in Other Comprehensive Income on Derivative (Effective Portion) | [1] | 2 | 3 |
Cash flow hedges | Foreign currency swaps | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net Realized Investment Gains (Losses) Recognized in Income on Derivative (Ineffective Portion) | 0 | 0 | |
Gain (Loss) Recognized in Other Comprehensive Income on Derivative (Effective Portion) | [1] | 2 | 3 |
Fair value hedges | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net Realized Investment Gains (Losses) Recognized in Income on Derivative (Ineffective Portion) | (17) | (26) | |
Gain (Loss) Recognized in Other Comprehensive Income on Derivative (Effective Portion) | [1] | 0 | 0 |
Fair value hedges | Foreign currency forwards | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net Realized Investment Gains (Losses) Recognized in Income on Derivative (Ineffective Portion) | [2] | (31) | (25) |
Gain (Loss) Recognized in Other Comprehensive Income on Derivative (Effective Portion) | [1],[2] | 0 | 0 |
Fair value hedges | Foreign currency options | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net Realized Investment Gains (Losses) Recognized in Income on Derivative (Ineffective Portion) | [2] | 14 | (1) |
Gain (Loss) Recognized in Other Comprehensive Income on Derivative (Effective Portion) | [1],[2] | 0 | 0 |
Net investment hedge | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net Realized Investment Gains (Losses) Recognized in Income on Derivative (Ineffective Portion) | 0 | 0 | |
Unrealized foreign currency translation gains (losses) during period | [1] | (49) | (81) |
Net investment hedge | Non-derivative hedging instruments | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net Realized Investment Gains (Losses) Recognized in Income on Derivative (Ineffective Portion) | 0 | 0 | |
Unrealized foreign currency translation gains (losses) during period | [1] | (17) | (15) |
Net investment hedge | Foreign currency forwards | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net Realized Investment Gains (Losses) Recognized in Income on Derivative (Ineffective Portion) | 0 | 0 | |
Unrealized foreign currency translation gains (losses) during period | [1] | (9) | (50) |
Net investment hedge | Foreign currency options | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net Realized Investment Gains (Losses) Recognized in Income on Derivative (Ineffective Portion) | 0 | 0 | |
Unrealized foreign currency translation gains (losses) during period | [1] | (23) | (16) |
Non-qualifying strategies | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments, Gain (Loss) Recognized in Income, Net | (35) | 22 | |
Gain (Loss) Recognized in Other Comprehensive Income on Derivative (Effective Portion) | [1] | 0 | 0 |
Non-qualifying strategies | Foreign currency swaps | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments, Gain (Loss) Recognized in Income, Net | (8) | 10 | |
Gain (Loss) Recognized in Other Comprehensive Income on Derivative (Effective Portion) | [1] | 0 | 0 |
Non-qualifying strategies | Foreign currency forwards | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments, Gain (Loss) Recognized in Income, Net | (27) | 11 | |
Gain (Loss) Recognized in Other Comprehensive Income on Derivative (Effective Portion) | [1] | 0 | 0 |
Non-qualifying strategies | Credit default swaps | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments, Gain (Loss) Recognized in Income, Net | 0 | 1 | |
Gain (Loss) Recognized in Other Comprehensive Income on Derivative (Effective Portion) | [1] | $ 0 | $ 0 |
[1] | Cash flow hedge items are recorded as unrealized gains (losses) on derivatives and net investment hedge items are recorded in the unrealized foreign currency translation gains (losses) line in the consolidated statement of comprehensive income (loss). | ||
[2] | Impact shown net of effect of hedged items (see Fair Value Hedges section of this Note 4 for further detail) |
DERIVATIVE INSTRUMENTS - Fair V
DERIVATIVE INSTRUMENTS - Fair Value and Notional Amounts of Derivatives With Counterparty Credit Risk (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||
Notional Amount of Derivatives | $ 34,451 | $ 43,927 |
Asset Derivatives Fair Value | 580 | 1,207 |
Liability Derivatives Fair Value | (1,099) | (1,998) |
AA | ||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||
Notional Amount of Derivatives | 6,391 | 6,844 |
Asset Derivatives Fair Value | 125 | 247 |
Liability Derivatives Fair Value | (172) | (308) |
A | ||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||
Notional Amount of Derivatives | 27,619 | 36,019 |
Asset Derivatives Fair Value | 449 | 900 |
Liability Derivatives Fair Value | (862) | (1,621) |
BBB | ||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||
Notional Amount of Derivatives | 441 | 1,064 |
Asset Derivatives Fair Value | 6 | 60 |
Liability Derivatives Fair Value | $ (65) | $ (69) |
DERIVATIVE INSTRUMENTS - Offset
DERIVATIVE INSTRUMENTS - Offsetting of Financial Assets and Derivative Assets (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Offsetting Assets [Line Items] | ||
Gross amount of recognized derivative assets | $ 434 | $ 1,080 |
Gross amount of liabilities offset in balance sheet | 0 | 0 |
Net amount of derivative assets presented in the balance sheet | 434 | 1,080 |
Financial instruments, amount not offset | (336) | (698) |
Derivative, collateral, obligation to return securities | 0 | 0 |
Derivative, collateral, obligation to return cash | (97) | (382) |
Derivative asset, fair value, amount offset against collateral, subject to master netting agreement | 1 | 0 |
Derivative asset, not subject to master netting arrangement | 146 | 127 |
Derivative asset, fair value, amount offset against collateral, not subject to master netting agreement | 146 | 127 |
Derivative asset, fair value, gross asset including not subject to master netting arrangement | 580 | 1,207 |
Net amount of derivative assets presented in balance sheet | 580 | 1,207 |
Derivative asset, fair value, amount offset against collateral | 147 | 127 |
Offsetting assets | ||
Offsetting Assets [Line Items] | ||
Gross amounts of recognized financial instruments | 2,025 | 1,720 |
Gross amounts offset in balance sheet | 0 | 0 |
Net amounts of assets presented in balance sheet | 2,025 | 1,720 |
Carrying value of financial instruments not offset in balance sheet | (336) | (698) |
Securities collateral, not offset in balance sheet | 0 | 0 |
Cash collateral, not offset in balance sheet | (1,542) | (895) |
Financial instruments, amount offset against collateral | 147 | 127 |
Offsetting assets | Securities lending and similar arrangements | ||
Offsetting Assets [Line Items] | ||
Gross amounts of recognized financial instruments | 1,445 | 513 |
Gross amounts offset in balance sheet | 0 | 0 |
Net amounts of assets presented in balance sheet | 1,445 | 513 |
Carrying value of financial instruments not offset in balance sheet | 0 | 0 |
Securities collateral, not offset in balance sheet | 0 | 0 |
Cash collateral, not offset in balance sheet | (1,445) | (513) |
Financial instruments, amount offset against collateral | $ 0 | $ 0 |
DERIVATIVE INSTRUMENTS - Offs54
DERIVATIVE INSTRUMENTS - Offsetting of Financial Liabilities and Derivative Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Offsetting Liabilities [Line Items] | ||
Gross amount of recognized derivative liabilities | $ (974) | $ (1,852) |
Gross amount of assets offset in balance sheet | 0 | 0 |
Derivative liability, fair value, amount not offset against collateral | (974) | (1,852) |
Financial instruments, amount not offset | 336 | 698 |
Derivative, collateral, right to reclaim securities | 527 | 1,130 |
Derivative, collateral, right to reclaim cash | 23 | 21 |
Derivative liability, fair value, amount offset against collateral, subject to master netting agreement | (88) | (3) |
Derivative liability, not subject to master netting arrangement | (125) | (146) |
Derivative liability, fair value, amount offset against collateral, not subject to master netting agreement | (125) | (146) |
Derivative liability, fair value, gross liability including not subject to master netting arrangement | (1,099) | (1,998) |
Net amount of derivative liabilities presented in balance sheet | (1,099) | (1,998) |
Derivative liability, fair value, amount offset against collateral | (213) | (149) |
Foreign currency swaps | ||
Offsetting Liabilities [Line Items] | ||
Net amount of derivative liabilities presented in balance sheet | (224) | (230) |
Foreign currency forwards | ||
Offsetting Liabilities [Line Items] | ||
Net amount of derivative liabilities presented in balance sheet | (853) | (1,717) |
Foreign currency options | ||
Offsetting Liabilities [Line Items] | ||
Net amount of derivative liabilities presented in balance sheet | (22) | (51) |
Offsetting liabilities | ||
Offsetting Liabilities [Line Items] | ||
Gross amounts of recognized financial instruments | (2,581) | (2,524) |
Gross amounts offset in balance sheet | 0 | 0 |
Net amounts of liabilities presented in balance sheet | (2,581) | (2,524) |
Carrying value of financial instruments not offset in balance sheet | 1,781 | 1,211 |
Securities collateral, not offset in balance sheet | 527 | 1,130 |
Cash collateral, not offset in balance sheet | 23 | 21 |
Financial instruments, amount offset against collateral | (250) | (162) |
Offsetting liabilities | Securities lending and similar arrangements | ||
Offsetting Liabilities [Line Items] | ||
Gross amounts of recognized financial instruments | (1,482) | (526) |
Gross amounts offset in balance sheet | 0 | 0 |
Net amounts of liabilities presented in balance sheet | (1,482) | (526) |
Carrying value of financial instruments not offset in balance sheet | 1,445 | 513 |
Securities collateral, not offset in balance sheet | 0 | 0 |
Cash collateral, not offset in balance sheet | 0 | 0 |
Financial instruments, amount offset against collateral | $ (37) | $ (13) |
FAIR VALUE MEASUREMENTS - Fair
FAIR VALUE MEASUREMENTS - Fair Value Hierarchy Levels of Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Assets: | ||
Available-for-sale Securities | $ 80,196 | $ 76,702 |
Asset derivatives | 580 | 1,207 |
Other Investments | 141 | 276 |
Cash and cash equivalents | 4,205 | 4,859 |
Total assets | 85,122 | 83,044 |
Liabilities: | ||
Liability derivatives | 1,099 | 1,998 |
Total liabilities | 1,099 | 1,998 |
Foreign currency swaps | ||
Assets: | ||
Asset derivatives | 318 | 490 |
Liabilities: | ||
Liability derivatives | 224 | 230 |
Foreign currency forwards | ||
Assets: | ||
Asset derivatives | 235 | 672 |
Liabilities: | ||
Liability derivatives | 853 | 1,717 |
Foreign currency options | ||
Assets: | ||
Asset derivatives | 25 | 43 |
Liabilities: | ||
Liability derivatives | 22 | 51 |
Credit default swaps | ||
Assets: | ||
Asset derivatives | 2 | 2 |
Fixed maturities | ||
Assets: | ||
Available-for-sale Securities | 77,077 | 73,760 |
Fixed maturities | Government and agencies | ||
Assets: | ||
Available-for-sale Securities | 29,320 | 26,214 |
Fixed maturities | Municipalities | ||
Assets: | ||
Available-for-sale Securities | 1,322 | 1,295 |
Fixed maturities | Mortgage- and asset-backed securities | ||
Assets: | ||
Available-for-sale Securities | 504 | 1,337 |
Fixed maturities | Public utilities | ||
Assets: | ||
Available-for-sale Securities | 7,843 | 7,683 |
Fixed maturities | Sovereign and supranational | ||
Assets: | ||
Available-for-sale Securities | 1,386 | 1,469 |
Fixed maturities | Banks/financial institutions | ||
Assets: | ||
Available-for-sale Securities | 6,545 | 6,063 |
Fixed maturities | Other corporate | ||
Assets: | ||
Available-for-sale Securities | 30,157 | 29,699 |
Perpetual securities | ||
Assets: | ||
Available-for-sale Securities | 1,770 | 1,633 |
Perpetual securities | Banks/financial institutions | ||
Assets: | ||
Available-for-sale Securities | 1,551 | 1,420 |
Perpetual securities | Other corporate | ||
Assets: | ||
Available-for-sale Securities | 219 | 213 |
Equity securities | ||
Assets: | ||
Available-for-sale Securities | 1,349 | 1,309 |
Level 1 | ||
Assets: | ||
Available-for-sale Securities | 29,796 | 26,687 |
Asset derivatives | 0 | 0 |
Other Investments | 141 | 276 |
Cash and cash equivalents | 4,205 | 4,859 |
Total assets | 34,142 | 31,822 |
Liabilities: | ||
Total liabilities | 0 | 0 |
Level 1 | Foreign currency swaps | ||
Assets: | ||
Asset derivatives | 0 | 0 |
Liabilities: | ||
Liability derivatives | 0 | 0 |
Level 1 | Foreign currency forwards | ||
Assets: | ||
Asset derivatives | 0 | 0 |
Liabilities: | ||
Liability derivatives | 0 | 0 |
Level 1 | Foreign currency options | ||
Assets: | ||
Asset derivatives | 0 | 0 |
Liabilities: | ||
Liability derivatives | 0 | 0 |
Level 1 | Credit default swaps | ||
Assets: | ||
Asset derivatives | 0 | 0 |
Level 1 | Fixed maturities | ||
Assets: | ||
Available-for-sale Securities | 28,457 | 25,387 |
Level 1 | Fixed maturities | Government and agencies | ||
Assets: | ||
Available-for-sale Securities | 28,457 | 25,387 |
Level 1 | Fixed maturities | Municipalities | ||
Assets: | ||
Available-for-sale Securities | 0 | 0 |
Level 1 | Fixed maturities | Mortgage- and asset-backed securities | ||
Assets: | ||
Available-for-sale Securities | 0 | 0 |
Level 1 | Fixed maturities | Public utilities | ||
Assets: | ||
Available-for-sale Securities | 0 | 0 |
Level 1 | Fixed maturities | Sovereign and supranational | ||
Assets: | ||
Available-for-sale Securities | 0 | 0 |
Level 1 | Fixed maturities | Banks/financial institutions | ||
Assets: | ||
Available-for-sale Securities | 0 | 0 |
Level 1 | Fixed maturities | Other corporate | ||
Assets: | ||
Available-for-sale Securities | 0 | 0 |
Level 1 | Perpetual securities | ||
Assets: | ||
Available-for-sale Securities | 0 | 0 |
Level 1 | Perpetual securities | Banks/financial institutions | ||
Assets: | ||
Available-for-sale Securities | 0 | 0 |
Level 1 | Perpetual securities | Other corporate | ||
Assets: | ||
Available-for-sale Securities | 0 | 0 |
Level 1 | Equity securities | ||
Assets: | ||
Available-for-sale Securities | 1,339 | 1,300 |
Level 2 | ||
Assets: | ||
Available-for-sale Securities | 50,126 | 49,773 |
Asset derivatives | 434 | 1,080 |
Other Investments | 0 | 0 |
Cash and cash equivalents | 0 | 0 |
Total assets | 50,560 | 50,853 |
Liabilities: | ||
Total liabilities | 974 | 1,852 |
Level 2 | Foreign currency swaps | ||
Assets: | ||
Asset derivatives | 174 | 365 |
Liabilities: | ||
Liability derivatives | 99 | 84 |
Level 2 | Foreign currency forwards | ||
Assets: | ||
Asset derivatives | 235 | 672 |
Liabilities: | ||
Liability derivatives | 853 | 1,717 |
Level 2 | Foreign currency options | ||
Assets: | ||
Asset derivatives | 25 | 43 |
Liabilities: | ||
Liability derivatives | 22 | 51 |
Level 2 | Credit default swaps | ||
Assets: | ||
Asset derivatives | 0 | 0 |
Level 2 | Fixed maturities | ||
Assets: | ||
Available-for-sale Securities | 48,350 | 48,134 |
Level 2 | Fixed maturities | Government and agencies | ||
Assets: | ||
Available-for-sale Securities | 863 | 827 |
Level 2 | Fixed maturities | Municipalities | ||
Assets: | ||
Available-for-sale Securities | 1,322 | 1,295 |
Level 2 | Fixed maturities | Mortgage- and asset-backed securities | ||
Assets: | ||
Available-for-sale Securities | 309 | 1,139 |
Level 2 | Fixed maturities | Public utilities | ||
Assets: | ||
Available-for-sale Securities | 7,827 | 7,667 |
Level 2 | Fixed maturities | Sovereign and supranational | ||
Assets: | ||
Available-for-sale Securities | 1,386 | 1,469 |
Level 2 | Fixed maturities | Banks/financial institutions | ||
Assets: | ||
Available-for-sale Securities | 6,521 | 6,038 |
Level 2 | Fixed maturities | Other corporate | ||
Assets: | ||
Available-for-sale Securities | 30,122 | 29,699 |
Level 2 | Perpetual securities | ||
Assets: | ||
Available-for-sale Securities | 1,770 | 1,633 |
Level 2 | Perpetual securities | Banks/financial institutions | ||
Assets: | ||
Available-for-sale Securities | 1,551 | 1,420 |
Level 2 | Perpetual securities | Other corporate | ||
Assets: | ||
Available-for-sale Securities | 219 | 213 |
Level 2 | Equity securities | ||
Assets: | ||
Available-for-sale Securities | 6 | 6 |
Level 3 | ||
Assets: | ||
Available-for-sale Securities | 274 | 242 |
Asset derivatives | 146 | 127 |
Other Investments | 0 | 0 |
Cash and cash equivalents | 0 | 0 |
Total assets | 420 | 369 |
Liabilities: | ||
Total liabilities | 125 | 146 |
Level 3 | Foreign currency swaps | ||
Assets: | ||
Asset derivatives | 144 | 125 |
Liabilities: | ||
Liability derivatives | 125 | 146 |
Level 3 | Foreign currency forwards | ||
Assets: | ||
Asset derivatives | 0 | 0 |
Liabilities: | ||
Liability derivatives | 0 | 0 |
Level 3 | Foreign currency options | ||
Assets: | ||
Asset derivatives | 0 | 0 |
Liabilities: | ||
Liability derivatives | 0 | 0 |
Level 3 | Credit default swaps | ||
Assets: | ||
Asset derivatives | 2 | 2 |
Level 3 | Fixed maturities | ||
Assets: | ||
Available-for-sale Securities | 270 | 239 |
Level 3 | Fixed maturities | Government and agencies | ||
Assets: | ||
Available-for-sale Securities | 0 | 0 |
Level 3 | Fixed maturities | Municipalities | ||
Assets: | ||
Available-for-sale Securities | 0 | 0 |
Level 3 | Fixed maturities | Mortgage- and asset-backed securities | ||
Assets: | ||
Available-for-sale Securities | 195 | 198 |
Level 3 | Fixed maturities | Public utilities | ||
Assets: | ||
Available-for-sale Securities | 16 | 16 |
Level 3 | Fixed maturities | Sovereign and supranational | ||
Assets: | ||
Available-for-sale Securities | 0 | 0 |
Level 3 | Fixed maturities | Banks/financial institutions | ||
Assets: | ||
Available-for-sale Securities | 24 | 25 |
Level 3 | Fixed maturities | Other corporate | ||
Assets: | ||
Available-for-sale Securities | 35 | 0 |
Level 3 | Perpetual securities | ||
Assets: | ||
Available-for-sale Securities | 0 | 0 |
Level 3 | Perpetual securities | Banks/financial institutions | ||
Assets: | ||
Available-for-sale Securities | 0 | 0 |
Level 3 | Perpetual securities | Other corporate | ||
Assets: | ||
Available-for-sale Securities | 0 | 0 |
Level 3 | Equity securities | ||
Assets: | ||
Available-for-sale Securities | $ 4 | $ 3 |
FAIR VALUE MEASUREMENTS - Fai56
FAIR VALUE MEASUREMENTS - Fair Value Hierarchy Levels of Assets and Liabilities Carried at Cost or Amortized Cost (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Other Investments | [1] | $ 1,701 | $ 1,450 | |
Assets: | ||||
Securities held to maturity, fixed maturities, amortized cost | 34,401 | 33,350 | ||
Securities held to maturity, fixed maturities, fair value | 40,923 | 40,021 | ||
Other investments carried at amortized cost | 1,309 | [2] | 1,174 | |
Other investments carried at amortized cost, fair value | 1,288 | [2] | 1,142 | |
Total financial instruments assets not carried at fair value | 35,710 | 34,524 | ||
Assets fair value disclosure financial instruments carried at cost | 42,211 | 41,163 | ||
Liabilities | ||||
Other policyholder funds | 6,945 | 6,659 | ||
Other policyholders' funds fair value disclosure | 6,824 | 6,540 | ||
Notes payable | 5,230 | 5,339 | ||
Notes payable fair value disclosure | 5,492 | 5,530 | ||
Total financial instrument liabilities not carried at fair value | 12,175 | 11,998 | ||
Liabilities fair value disclosure financial instruments carried at cost | 12,316 | 12,070 | ||
Fixed maturities | ||||
Assets: | ||||
Securities held to maturity, fixed maturities, fair value | 40,923 | 40,021 | ||
Government and agencies | Fixed maturities | ||||
Assets: | ||||
Securities held to maturity, fixed maturities, amortized cost | 21,493 | 20,702 | ||
Securities held to maturity, fixed maturities, fair value | 26,607 | 26,040 | ||
Municipalities | Fixed maturities | ||||
Assets: | ||||
Securities held to maturity, fixed maturities, amortized cost | 363 | 350 | ||
Securities held to maturity, fixed maturities, fair value | 467 | 457 | ||
Mortgage- and asset-backed securities | Fixed maturities | ||||
Assets: | ||||
Securities held to maturity, fixed maturities, amortized cost | 30 | 30 | ||
Securities held to maturity, fixed maturities, fair value | 32 | 32 | ||
Public utilities | Fixed maturities | ||||
Assets: | ||||
Securities held to maturity, fixed maturities, amortized cost | 3,324 | 3,201 | ||
Securities held to maturity, fixed maturities, fair value | 3,693 | 3,536 | ||
Sovereign and supranational | Fixed maturities | ||||
Assets: | ||||
Securities held to maturity, fixed maturities, amortized cost | 2,702 | 2,602 | ||
Securities held to maturity, fixed maturities, fair value | 3,009 | 2,877 | ||
Banks/financial institutions | Fixed maturities | ||||
Assets: | ||||
Securities held to maturity, fixed maturities, amortized cost | 3,650 | 3,731 | ||
Securities held to maturity, fixed maturities, fair value | 3,830 | 3,900 | ||
Other corporate | Fixed maturities | ||||
Assets: | ||||
Securities held to maturity, fixed maturities, amortized cost | 2,839 | 2,734 | ||
Securities held to maturity, fixed maturities, fair value | 3,285 | 3,179 | ||
Policy loans | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Other Investments | 197 | 184 | ||
Equity method investments | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Other Investments | 54 | |||
Level 1 | ||||
Assets: | ||||
Other investments carried at amortized cost, fair value | 0 | [2] | 0 | |
Assets fair value disclosure financial instruments carried at cost | 26,607 | 26,040 | ||
Liabilities | ||||
Other policyholders' funds fair value disclosure | 0 | 0 | ||
Notes payable fair value disclosure | 0 | 0 | ||
Liabilities fair value disclosure financial instruments carried at cost | 0 | 0 | ||
Level 1 | Fixed maturities | ||||
Assets: | ||||
Securities held to maturity, fixed maturities, fair value | 26,607 | 26,040 | ||
Level 1 | Government and agencies | Fixed maturities | ||||
Assets: | ||||
Securities held to maturity, fixed maturities, fair value | 26,607 | 26,040 | ||
Level 1 | Municipalities | Fixed maturities | ||||
Assets: | ||||
Securities held to maturity, fixed maturities, fair value | 0 | 0 | ||
Level 1 | Mortgage- and asset-backed securities | Fixed maturities | ||||
Assets: | ||||
Securities held to maturity, fixed maturities, fair value | 0 | 0 | ||
Level 1 | Public utilities | Fixed maturities | ||||
Assets: | ||||
Securities held to maturity, fixed maturities, fair value | 0 | 0 | ||
Level 1 | Sovereign and supranational | Fixed maturities | ||||
Assets: | ||||
Securities held to maturity, fixed maturities, fair value | 0 | 0 | ||
Level 1 | Banks/financial institutions | Fixed maturities | ||||
Assets: | ||||
Securities held to maturity, fixed maturities, fair value | 0 | 0 | ||
Level 1 | Other corporate | Fixed maturities | ||||
Assets: | ||||
Securities held to maturity, fixed maturities, fair value | 0 | 0 | ||
Level 2 | ||||
Assets: | ||||
Other investments carried at amortized cost, fair value | 0 | [2] | 0 | |
Assets fair value disclosure financial instruments carried at cost | 14,294 | 13,959 | ||
Liabilities | ||||
Other policyholders' funds fair value disclosure | 0 | 0 | ||
Notes payable fair value disclosure | 5,226 | 0 | ||
Liabilities fair value disclosure financial instruments carried at cost | 5,226 | 0 | ||
Level 2 | Fixed maturities | ||||
Assets: | ||||
Securities held to maturity, fixed maturities, fair value | 14,294 | 13,959 | ||
Level 2 | Government and agencies | Fixed maturities | ||||
Assets: | ||||
Securities held to maturity, fixed maturities, fair value | 0 | 0 | ||
Level 2 | Municipalities | Fixed maturities | ||||
Assets: | ||||
Securities held to maturity, fixed maturities, fair value | 467 | 457 | ||
Level 2 | Mortgage- and asset-backed securities | Fixed maturities | ||||
Assets: | ||||
Securities held to maturity, fixed maturities, fair value | 10 | 10 | ||
Level 2 | Public utilities | Fixed maturities | ||||
Assets: | ||||
Securities held to maturity, fixed maturities, fair value | 3,693 | 3,536 | ||
Level 2 | Sovereign and supranational | Fixed maturities | ||||
Assets: | ||||
Securities held to maturity, fixed maturities, fair value | 3,009 | 2,877 | ||
Level 2 | Banks/financial institutions | Fixed maturities | ||||
Assets: | ||||
Securities held to maturity, fixed maturities, fair value | 3,830 | 3,900 | ||
Level 2 | Other corporate | Fixed maturities | ||||
Assets: | ||||
Securities held to maturity, fixed maturities, fair value | 3,285 | 3,179 | ||
Level 3 | ||||
Assets: | ||||
Other investments carried at amortized cost, fair value | 1,288 | [2] | 1,142 | |
Assets fair value disclosure financial instruments carried at cost | 1,310 | 1,164 | ||
Liabilities | ||||
Other policyholders' funds fair value disclosure | 6,824 | 6,540 | ||
Notes payable fair value disclosure | 266 | 5,530 | ||
Liabilities fair value disclosure financial instruments carried at cost | 7,090 | 12,070 | ||
Level 3 | Fixed maturities | ||||
Assets: | ||||
Securities held to maturity, fixed maturities, fair value | 22 | 22 | ||
Level 3 | Government and agencies | Fixed maturities | ||||
Assets: | ||||
Securities held to maturity, fixed maturities, fair value | 0 | 0 | ||
Level 3 | Municipalities | Fixed maturities | ||||
Assets: | ||||
Securities held to maturity, fixed maturities, fair value | 0 | 0 | ||
Level 3 | Mortgage- and asset-backed securities | Fixed maturities | ||||
Assets: | ||||
Securities held to maturity, fixed maturities, fair value | 22 | 22 | ||
Level 3 | Public utilities | Fixed maturities | ||||
Assets: | ||||
Securities held to maturity, fixed maturities, fair value | 0 | 0 | ||
Level 3 | Sovereign and supranational | Fixed maturities | ||||
Assets: | ||||
Securities held to maturity, fixed maturities, fair value | 0 | 0 | ||
Level 3 | Banks/financial institutions | Fixed maturities | ||||
Assets: | ||||
Securities held to maturity, fixed maturities, fair value | 0 | 0 | ||
Level 3 | Other corporate | Fixed maturities | ||||
Assets: | ||||
Securities held to maturity, fixed maturities, fair value | $ 0 | $ 0 | ||
[1] | Includes $926 in 2017 and $819 in 2016 of loan receivables from consolidated variable interest entities | |||
[2] | Excludes policy loans of $197 and equity method investments of $54, at carrying value |
FAIR VALUE MEASUREMENTS - Fai57
FAIR VALUE MEASUREMENTS - Fair Value Hierarchy Levels of Assets by Pricing Source, Available-for-Sale Securities (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | $ 80,196 | $ 76,702 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 29,796 | 26,687 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 50,126 | 49,773 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 274 | 242 |
Fixed maturities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 77,077 | 73,760 |
Fixed maturities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 28,457 | 25,387 |
Fixed maturities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 48,350 | 48,134 |
Fixed maturities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 270 | 239 |
Perpetual securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 1,770 | 1,633 |
Perpetual securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Perpetual securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 1,770 | 1,633 |
Perpetual securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 1,349 | 1,309 |
Equity securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 1,339 | 1,300 |
Equity securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 6 | 6 |
Equity securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 4 | 3 |
Equity securities | Third party pricing vendor valuation technique | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 1,345 | 1,306 |
Equity securities | Third party pricing vendor valuation technique | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 1,339 | 1,300 |
Equity securities | Third party pricing vendor valuation technique | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 6 | 6 |
Equity securities | Third party pricing vendor valuation technique | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Equity securities | Net asset value valuation technique | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 4 | 3 |
Equity securities | Net asset value valuation technique | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Equity securities | Net asset value valuation technique | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Equity securities | Net asset value valuation technique | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 4 | 3 |
Government and agencies | Fixed maturities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 29,320 | 26,214 |
Government and agencies | Fixed maturities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 28,457 | 25,387 |
Government and agencies | Fixed maturities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 863 | 827 |
Government and agencies | Fixed maturities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Government and agencies | Fixed maturities | Third party pricing vendor valuation technique | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 29,320 | 26,214 |
Government and agencies | Fixed maturities | Third party pricing vendor valuation technique | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 28,457 | 25,387 |
Government and agencies | Fixed maturities | Third party pricing vendor valuation technique | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 863 | 827 |
Government and agencies | Fixed maturities | Third party pricing vendor valuation technique | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Municipalities | Fixed maturities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 1,322 | 1,295 |
Municipalities | Fixed maturities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Municipalities | Fixed maturities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 1,322 | 1,295 |
Municipalities | Fixed maturities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Municipalities | Fixed maturities | Third party pricing vendor valuation technique | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 1,322 | 1,295 |
Municipalities | Fixed maturities | Third party pricing vendor valuation technique | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Municipalities | Fixed maturities | Third party pricing vendor valuation technique | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 1,322 | 1,295 |
Municipalities | Fixed maturities | Third party pricing vendor valuation technique | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Mortgage- and asset-backed securities | Fixed maturities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 504 | 1,337 |
Mortgage- and asset-backed securities | Fixed maturities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Mortgage- and asset-backed securities | Fixed maturities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 309 | 1,139 |
Mortgage- and asset-backed securities | Fixed maturities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 195 | 198 |
Mortgage- and asset-backed securities | Fixed maturities | Third party pricing vendor valuation technique | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 309 | 1,139 |
Mortgage- and asset-backed securities | Fixed maturities | Third party pricing vendor valuation technique | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Mortgage- and asset-backed securities | Fixed maturities | Third party pricing vendor valuation technique | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 309 | 1,139 |
Mortgage- and asset-backed securities | Fixed maturities | Third party pricing vendor valuation technique | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Mortgage- and asset-backed securities | Fixed maturities | Consensus pricing valuation technique | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 195 | 198 |
Mortgage- and asset-backed securities | Fixed maturities | Consensus pricing valuation technique | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Mortgage- and asset-backed securities | Fixed maturities | Consensus pricing valuation technique | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Mortgage- and asset-backed securities | Fixed maturities | Consensus pricing valuation technique | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 195 | 198 |
Public utilities | Fixed maturities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 7,843 | 7,683 |
Public utilities | Fixed maturities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Public utilities | Fixed maturities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 7,827 | 7,667 |
Public utilities | Fixed maturities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 16 | 16 |
Public utilities | Fixed maturities | Third party pricing vendor valuation technique | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 7,827 | 7,667 |
Public utilities | Fixed maturities | Third party pricing vendor valuation technique | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Public utilities | Fixed maturities | Third party pricing vendor valuation technique | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 7,827 | 7,667 |
Public utilities | Fixed maturities | Third party pricing vendor valuation technique | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Public utilities | Fixed maturities | Discounted cash flow valuation technique | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 16 | 16 |
Public utilities | Fixed maturities | Discounted cash flow valuation technique | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Public utilities | Fixed maturities | Discounted cash flow valuation technique | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Public utilities | Fixed maturities | Discounted cash flow valuation technique | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 16 | 16 |
Sovereign and supranational | Fixed maturities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 1,386 | 1,469 |
Sovereign and supranational | Fixed maturities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Sovereign and supranational | Fixed maturities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 1,386 | 1,469 |
Sovereign and supranational | Fixed maturities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Sovereign and supranational | Fixed maturities | Third party pricing vendor valuation technique | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 1,386 | 1,469 |
Sovereign and supranational | Fixed maturities | Third party pricing vendor valuation technique | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Sovereign and supranational | Fixed maturities | Third party pricing vendor valuation technique | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 1,386 | 1,469 |
Sovereign and supranational | Fixed maturities | Third party pricing vendor valuation technique | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Banks/financial institutions | Fixed maturities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 6,545 | 6,063 |
Banks/financial institutions | Fixed maturities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Banks/financial institutions | Fixed maturities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 6,521 | 6,038 |
Banks/financial institutions | Fixed maturities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 24 | 25 |
Banks/financial institutions | Fixed maturities | Third party pricing vendor valuation technique | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 6,521 | 6,038 |
Banks/financial institutions | Fixed maturities | Third party pricing vendor valuation technique | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Banks/financial institutions | Fixed maturities | Third party pricing vendor valuation technique | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 6,521 | 6,038 |
Banks/financial institutions | Fixed maturities | Third party pricing vendor valuation technique | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Banks/financial institutions | Fixed maturities | Consensus pricing valuation technique | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 24 | 25 |
Banks/financial institutions | Fixed maturities | Consensus pricing valuation technique | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Banks/financial institutions | Fixed maturities | Consensus pricing valuation technique | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Banks/financial institutions | Fixed maturities | Consensus pricing valuation technique | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 24 | 25 |
Banks/financial institutions | Perpetual securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 1,551 | 1,420 |
Banks/financial institutions | Perpetual securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Banks/financial institutions | Perpetual securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 1,551 | 1,420 |
Banks/financial institutions | Perpetual securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Banks/financial institutions | Perpetual securities | Third party pricing vendor valuation technique | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 1,551 | 1,420 |
Banks/financial institutions | Perpetual securities | Third party pricing vendor valuation technique | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Banks/financial institutions | Perpetual securities | Third party pricing vendor valuation technique | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 1,551 | 1,420 |
Banks/financial institutions | Perpetual securities | Third party pricing vendor valuation technique | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Other corporate | Fixed maturities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 30,157 | 29,699 |
Other corporate | Fixed maturities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Other corporate | Fixed maturities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 30,122 | 29,699 |
Other corporate | Fixed maturities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 35 | 0 |
Other corporate | Fixed maturities | Third party pricing vendor valuation technique | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 30,122 | 29,699 |
Other corporate | Fixed maturities | Third party pricing vendor valuation technique | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Other corporate | Fixed maturities | Third party pricing vendor valuation technique | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 30,122 | 29,699 |
Other corporate | Fixed maturities | Third party pricing vendor valuation technique | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Other corporate | Fixed maturities | Discounted cash flow valuation technique | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 35 | |
Other corporate | Fixed maturities | Discounted cash flow valuation technique | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | |
Other corporate | Fixed maturities | Discounted cash flow valuation technique | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | |
Other corporate | Fixed maturities | Discounted cash flow valuation technique | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 35 | |
Other corporate | Perpetual securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 219 | 213 |
Other corporate | Perpetual securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Other corporate | Perpetual securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 219 | 213 |
Other corporate | Perpetual securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Other corporate | Perpetual securities | Third party pricing vendor valuation technique | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 219 | 213 |
Other corporate | Perpetual securities | Third party pricing vendor valuation technique | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Other corporate | Perpetual securities | Third party pricing vendor valuation technique | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 219 | 213 |
Other corporate | Perpetual securities | Third party pricing vendor valuation technique | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - Fai58
FAIR VALUE MEASUREMENTS - Fair Value Hierarchy Levels of Assets by Pricing Source, Held-to-Maturity Securities (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | $ 40,923 | $ 40,021 |
Fixed maturities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 40,923 | 40,021 |
Fixed maturities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 26,607 | 26,040 |
Fixed maturities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 14,294 | 13,959 |
Fixed maturities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 22 | 22 |
Government and agencies | Fixed maturities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 26,607 | 26,040 |
Government and agencies | Fixed maturities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 26,607 | 26,040 |
Government and agencies | Fixed maturities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 0 | 0 |
Government and agencies | Fixed maturities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 0 | 0 |
Government and agencies | Fixed maturities | Third party pricing vendor valuation technique | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 26,607 | 26,040 |
Government and agencies | Fixed maturities | Third party pricing vendor valuation technique | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 26,607 | 26,040 |
Government and agencies | Fixed maturities | Third party pricing vendor valuation technique | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 0 | 0 |
Government and agencies | Fixed maturities | Third party pricing vendor valuation technique | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 0 | 0 |
Municipalities | Fixed maturities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 467 | 457 |
Municipalities | Fixed maturities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 0 | 0 |
Municipalities | Fixed maturities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 467 | 457 |
Municipalities | Fixed maturities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 0 | 0 |
Municipalities | Fixed maturities | Third party pricing vendor valuation technique | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 467 | 457 |
Municipalities | Fixed maturities | Third party pricing vendor valuation technique | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 0 | 0 |
Municipalities | Fixed maturities | Third party pricing vendor valuation technique | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 467 | 457 |
Municipalities | Fixed maturities | Third party pricing vendor valuation technique | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 0 | 0 |
Mortgage- and asset-backed securities | Fixed maturities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 32 | 32 |
Mortgage- and asset-backed securities | Fixed maturities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 0 | 0 |
Mortgage- and asset-backed securities | Fixed maturities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 10 | 10 |
Mortgage- and asset-backed securities | Fixed maturities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 22 | 22 |
Mortgage- and asset-backed securities | Fixed maturities | Third party pricing vendor valuation technique | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 10 | 10 |
Mortgage- and asset-backed securities | Fixed maturities | Third party pricing vendor valuation technique | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 0 | 0 |
Mortgage- and asset-backed securities | Fixed maturities | Third party pricing vendor valuation technique | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 10 | 10 |
Mortgage- and asset-backed securities | Fixed maturities | Third party pricing vendor valuation technique | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 0 | 0 |
Mortgage- and asset-backed securities | Fixed maturities | Consensus pricing valuation technique | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 22 | 22 |
Mortgage- and asset-backed securities | Fixed maturities | Consensus pricing valuation technique | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 0 | 0 |
Mortgage- and asset-backed securities | Fixed maturities | Consensus pricing valuation technique | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 0 | 0 |
Mortgage- and asset-backed securities | Fixed maturities | Consensus pricing valuation technique | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 22 | 22 |
Public utilities | Fixed maturities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 3,693 | 3,536 |
Public utilities | Fixed maturities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 0 | 0 |
Public utilities | Fixed maturities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 3,693 | 3,536 |
Public utilities | Fixed maturities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 0 | 0 |
Public utilities | Fixed maturities | Third party pricing vendor valuation technique | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 3,693 | 3,536 |
Public utilities | Fixed maturities | Third party pricing vendor valuation technique | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 0 | 0 |
Public utilities | Fixed maturities | Third party pricing vendor valuation technique | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 3,693 | 3,536 |
Public utilities | Fixed maturities | Third party pricing vendor valuation technique | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 0 | 0 |
Sovereign and supranational | Fixed maturities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 3,009 | 2,877 |
Sovereign and supranational | Fixed maturities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 0 | 0 |
Sovereign and supranational | Fixed maturities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 3,009 | 2,877 |
Sovereign and supranational | Fixed maturities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 0 | 0 |
Sovereign and supranational | Fixed maturities | Third party pricing vendor valuation technique | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 3,009 | 2,877 |
Sovereign and supranational | Fixed maturities | Third party pricing vendor valuation technique | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 0 | 0 |
Sovereign and supranational | Fixed maturities | Third party pricing vendor valuation technique | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 3,009 | 2,877 |
Sovereign and supranational | Fixed maturities | Third party pricing vendor valuation technique | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 0 | 0 |
Banks/financial institutions | Fixed maturities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 3,830 | 3,900 |
Banks/financial institutions | Fixed maturities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 0 | 0 |
Banks/financial institutions | Fixed maturities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 3,830 | 3,900 |
Banks/financial institutions | Fixed maturities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 0 | 0 |
Banks/financial institutions | Fixed maturities | Third party pricing vendor valuation technique | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 3,830 | 3,900 |
Banks/financial institutions | Fixed maturities | Third party pricing vendor valuation technique | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 0 | 0 |
Banks/financial institutions | Fixed maturities | Third party pricing vendor valuation technique | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 3,830 | 3,900 |
Banks/financial institutions | Fixed maturities | Third party pricing vendor valuation technique | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 0 | 0 |
Other corporate | Fixed maturities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 3,285 | 3,179 |
Other corporate | Fixed maturities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 0 | 0 |
Other corporate | Fixed maturities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 3,285 | 3,179 |
Other corporate | Fixed maturities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 0 | 0 |
Other corporate | Fixed maturities | Third party pricing vendor valuation technique | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 3,285 | 3,179 |
Other corporate | Fixed maturities | Third party pricing vendor valuation technique | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 0 | 0 |
Other corporate | Fixed maturities | Third party pricing vendor valuation technique | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 3,285 | 3,179 |
Other corporate | Fixed maturities | Third party pricing vendor valuation technique | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - Chang
FAIR VALUE MEASUREMENTS - Changes in Available-For-Sale Investments and Derivatives Classified as Level 3 (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance, beginning of period | $ 223 | $ 58 | |
Realized investment gains (losses) included in earnings | 38 | 126 | |
Unrealized gains (losses) included in other comprehensive income (loss) | 7 | 25 | |
Purchases | 37 | 0 | |
Issuances | 0 | 0 | |
Sales | (1) | 0 | |
Settlements | (9) | (4) | |
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | 0 | ||
Balance, end of period | 295 | 205 | |
Change in unrealized gains (losses) still held | 38 | 126 | |
Foreign currency swaps | |||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Balance, beginning of period | [1] | (21) | (192) |
Realized gains or losses included in earnings | [1] | 38 | 125 |
Unrealized gains or losses included in other comprehensive income (loss) | [1] | 2 | 4 |
Purchases | [1] | 0 | 0 |
Issuances | [1] | 0 | 0 |
Sales | [1] | 0 | 0 |
Settlements | [1] | 0 | 0 |
Transfers into Level 3 | [1] | 0 | 0 |
Transfers out of Level 3 | [1] | 0 | |
Balance, end of period | [1] | 19 | (63) |
Changes in unrealized gain (losses) still held | [1] | 38 | 125 |
Credit default swaps | |||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Balance, beginning of period | [1] | 2 | 1 |
Realized gains or losses included in earnings | [1] | 0 | 1 |
Unrealized gains or losses included in other comprehensive income (loss) | [1] | 0 | 0 |
Purchases | [1] | 0 | 0 |
Issuances | [1] | 0 | 0 |
Sales | [1] | 0 | 0 |
Settlements | [1] | 0 | 0 |
Transfers into Level 3 | [1] | 0 | 0 |
Transfers out of Level 3 | [1] | 0 | |
Balance, end of period | [1] | 2 | 2 |
Changes in unrealized gain (losses) still held | [1] | 0 | 1 |
Fixed maturities | Mortgage- and asset-backed securities | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance, beginning of period | 198 | 220 | |
Realized investment gains (losses) included in earnings | 0 | 0 | |
Unrealized gains (losses) included in other comprehensive income (loss) | 6 | 21 | |
Purchases | 0 | 0 | |
Issuances | 0 | 0 | |
Sales | 0 | 0 | |
Settlements | (9) | (4) | |
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | 0 | ||
Balance, end of period | 195 | 237 | |
Change in unrealized gains (losses) still held | 0 | 0 | |
Fixed maturities | Public utilities | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance, beginning of period | 16 | 0 | |
Realized investment gains (losses) included in earnings | 0 | 0 | |
Unrealized gains (losses) included in other comprehensive income (loss) | 0 | 0 | |
Purchases | 0 | 0 | |
Issuances | 0 | 0 | |
Sales | 0 | 0 | |
Settlements | 0 | 0 | |
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | 0 | ||
Balance, end of period | 16 | 0 | |
Change in unrealized gains (losses) still held | 0 | 0 | |
Fixed maturities | Banks/financial institutions | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance, beginning of period | 25 | 26 | |
Realized investment gains (losses) included in earnings | 0 | 0 | |
Unrealized gains (losses) included in other comprehensive income (loss) | (1) | 0 | |
Purchases | 0 | 0 | |
Issuances | 0 | 0 | |
Sales | 0 | 0 | |
Settlements | 0 | 0 | |
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | 0 | ||
Balance, end of period | 24 | 26 | |
Change in unrealized gains (losses) still held | 0 | 0 | |
Fixed maturities | Other corporate | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance, beginning of period | 0 | ||
Realized investment gains (losses) included in earnings | 0 | ||
Unrealized gains (losses) included in other comprehensive income (loss) | 0 | ||
Purchases | 35 | ||
Issuances | 0 | ||
Sales | 0 | ||
Settlements | 0 | ||
Transfers into Level 3 | 0 | ||
Transfers out of Level 3 | 0 | ||
Balance, end of period | 35 | ||
Change in unrealized gains (losses) still held | 0 | ||
Equity securities | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance, beginning of period | 3 | 3 | |
Realized investment gains (losses) included in earnings | 0 | 0 | |
Unrealized gains (losses) included in other comprehensive income (loss) | 0 | 0 | |
Purchases | 2 | 0 | |
Issuances | 0 | 0 | |
Sales | (1) | 0 | |
Settlements | 0 | 0 | |
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | 0 | ||
Balance, end of period | 4 | 3 | |
Change in unrealized gains (losses) still held | $ 0 | $ 0 | |
[1] | Derivative assets and liabilities are presented net |
FAIR VALUE MEASUREMENTS - Addit
FAIR VALUE MEASUREMENTS - Additional Information (Detail) - USD ($) $ in Millions | Mar. 31, 2017 | Mar. 31, 2016 |
Fair Value Disclosures [Abstract] | ||
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount | $ 0 | $ 0 |
Fair Value, Assets, Level 2 to Level 1 Transfers, Amount | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - Fai61
FAIR VALUE MEASUREMENTS - Fair Value Inputs Assets Quantitative Information (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Available-for-sale Securities | $ 80,196 | $ 76,702 | |
Asset derivatives | 580 | 1,207 | |
Assets, fair value | $ 85,122 | $ 83,044 | |
Length of Volatility of Japanese Yen to US Dollar Exchange Rate | 10 years | 10 years | |
Level 3 | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Available-for-sale Securities | $ 274 | $ 242 | |
Asset derivatives | 146 | 127 | |
Assets, fair value | 420 | 369 | |
Fixed maturities | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Available-for-sale Securities | 77,077 | 73,760 | |
Fixed maturities | Level 3 | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Available-for-sale Securities | 270 | 239 | |
Perpetual securities | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Available-for-sale Securities | 1,770 | 1,633 | |
Perpetual securities | Level 3 | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Available-for-sale Securities | 0 | 0 | |
Equity securities | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Available-for-sale Securities | 1,349 | 1,309 | |
Equity securities | Level 3 | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Available-for-sale Securities | 4 | 3 | |
Equity securities | Net asset value valuation technique | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Available-for-sale Securities | 4 | 3 | |
Equity securities | Net asset value valuation technique | Level 3 | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Available-for-sale Securities | $ 4 | $ 3 | |
Equity securities | Assets | Lower Limit | Level 3 | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Fair Value Inputs, Offered Quotes | $ 1 | $ 1 | |
Equity securities | Assets | Upper Limit | Level 3 | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Fair Value Inputs, Offered Quotes | 728 | 701 | |
Equity securities | Assets | Weighted Average | Level 3 | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Fair Value Inputs, Offered Quotes | $ 8 | $ 8 | |
Mortgage- and asset-backed securities | Fixed maturities | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Available-for-sale Securities | $ 504 | $ 1,337 | |
Mortgage- and asset-backed securities | Fixed maturities | Level 3 | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Available-for-sale Securities | 195 | 198 | |
Mortgage- and asset-backed securities | Fixed maturities | Consensus pricing valuation technique | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Available-for-sale Securities | 195 | 198 | |
Mortgage- and asset-backed securities | Fixed maturities | Consensus pricing valuation technique | Level 3 | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Available-for-sale Securities | 195 | 198 | |
Public utilities | Fixed maturities | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Available-for-sale Securities | 7,843 | 7,683 | |
Public utilities | Fixed maturities | Level 3 | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Available-for-sale Securities | 16 | 16 | |
Public utilities | Fixed maturities | Discounted cash flow valuation technique | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Available-for-sale Securities | 16 | 16 | |
Public utilities | Fixed maturities | Discounted cash flow valuation technique | Level 3 | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Available-for-sale Securities | 16 | 16 | |
Banks/financial institutions | Fixed maturities | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Available-for-sale Securities | 6,545 | 6,063 | |
Banks/financial institutions | Fixed maturities | Level 3 | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Available-for-sale Securities | 24 | 25 | |
Banks/financial institutions | Fixed maturities | Consensus pricing valuation technique | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Available-for-sale Securities | 24 | 25 | |
Banks/financial institutions | Fixed maturities | Consensus pricing valuation technique | Level 3 | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Available-for-sale Securities | 24 | 25 | |
Banks/financial institutions | Perpetual securities | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Available-for-sale Securities | 1,551 | 1,420 | |
Banks/financial institutions | Perpetual securities | Level 3 | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Available-for-sale Securities | 0 | 0 | |
Other corporate | Fixed maturities | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Available-for-sale Securities | 30,157 | 29,699 | |
Other corporate | Fixed maturities | Level 3 | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Available-for-sale Securities | 35 | 0 | |
Other corporate | Fixed maturities | Discounted cash flow valuation technique | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Available-for-sale Securities | 35 | ||
Other corporate | Fixed maturities | Discounted cash flow valuation technique | Level 3 | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Available-for-sale Securities | 35 | ||
Other corporate | Perpetual securities | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Available-for-sale Securities | 219 | 213 | |
Other corporate | Perpetual securities | Level 3 | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Available-for-sale Securities | 0 | 0 | |
Foreign currency swaps | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Asset derivatives | 318 | 490 | |
Foreign currency swaps | Level 3 | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Asset derivatives | 144 | 125 | |
Credit default swaps | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Asset derivatives | 2 | 2 | |
Credit default swaps | Level 3 | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Asset derivatives | 2 | 2 | |
Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), CDS Spreads and Foreign Exchange Rates | Foreign currency swaps | Discounted cash flow valuation technique | Level 3 | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Asset derivatives | $ 25 | $ 16 | |
Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), CDS Spreads and Foreign Exchange Rates | Foreign currency swaps | Assets | Level 3 | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Fair Value Inputs, Foreign Exchange Rates | [1] | 21.34% | 21.47% |
Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), CDS Spreads and Foreign Exchange Rates | Foreign currency swaps | Assets | Lower Limit | Level 3 | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Fair Value Inputs, Entity Credit Risk | 0.11% | 0.17% | |
Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), CDS Spreads and Foreign Exchange Rates | Foreign currency swaps | Assets | Upper Limit | Level 3 | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Fair Value Inputs, Entity Credit Risk | 1.47% | 1.72% | |
Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), and CDS Spread | Foreign currency swaps | Discounted cash flow valuation technique | Level 3 | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Asset derivatives | $ 50 | $ 29 | |
Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), and CDS Spread | Foreign currency swaps | Assets | Lower Limit | Level 3 | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Fair Value Inputs, Entity Credit Risk | 0.10% | 0.16% | |
Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), and CDS Spread | Foreign currency swaps | Assets | Upper Limit | Level 3 | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Fair Value Inputs, Entity Credit Risk | 0.79% | 0.88% | |
Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), and Foreign Exchange Rates | Foreign currency swaps | Discounted cash flow valuation technique | Level 3 | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Asset derivatives | $ 69 | $ 80 | |
Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), and Foreign Exchange Rates | Foreign currency swaps | Assets | Level 3 | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Fair Value Inputs, Foreign Exchange Rates | [1] | 21.34% | 21.47% |
Fair Value, Unobservable Input, Base Correlation, CDS Spreads, Recovery Rate | Credit default swaps | Discounted cash flow valuation technique | Level 3 | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Asset derivatives | $ 2 | $ 2 | |
Fair Value, Unobservable Input, Base Correlation, CDS Spreads, Recovery Rate | Credit default swaps | Assets | Level 3 | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Fair Value Inputs, Entity Credit Risk | 0.48% | 0.54% | |
Fair Value Inputs, Recovery Rate | 36.69% | 36.69% | |
Fair Value, Unobservable Input, Base Correlation, CDS Spreads, Recovery Rate | Credit default swaps | Assets | Lower Limit | Level 3 | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Fair Value Inputs, Base Correlation | [2] | 61.55% | 52.18% |
Fair Value, Unobservable Input, Base Correlation, CDS Spreads, Recovery Rate | Credit default swaps | Assets | Upper Limit | Level 3 | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Fair Value Inputs, Base Correlation | [2] | 66.55% | 56.07% |
Dollar-denominated | Fixed maturities | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Available-for-sale Securities | $ 37,023 | $ 36,611 | |
Dollar-denominated | Equity securities | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Available-for-sale Securities | 628 | 604 | |
Dollar-denominated | Mortgage- and asset-backed securities | Fixed maturities | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Available-for-sale Securities | 200 | 216 | |
Dollar-denominated | Public utilities | Fixed maturities | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Available-for-sale Securities | 5,888 | 5,835 | |
Dollar-denominated | Banks/financial institutions | Fixed maturities | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Available-for-sale Securities | 3,175 | 3,061 | |
Dollar-denominated | Banks/financial institutions | Perpetual securities | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Available-for-sale Securities | 78 | 75 | |
Dollar-denominated | Other corporate | Fixed maturities | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Available-for-sale Securities | $ 26,148 | $ 25,887 | |
Dollar-denominated | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), CDS Spreads and Foreign Exchange Rates | Foreign currency swaps | Assets | Lower Limit | Level 3 | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Fair Value Inputs, Discount Rate | [3] | 2.18% | 2.34% |
Dollar-denominated | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), CDS Spreads and Foreign Exchange Rates | Foreign currency swaps | Assets | Upper Limit | Level 3 | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Fair Value Inputs, Discount Rate | [3] | 2.45% | 2.59% |
Dollar-denominated | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), and CDS Spread | Foreign currency swaps | Assets | Lower Limit | Level 3 | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Fair Value Inputs, Discount Rate | [3] | 2.18% | 2.34% |
Dollar-denominated | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), and CDS Spread | Foreign currency swaps | Assets | Upper Limit | Level 3 | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Fair Value Inputs, Discount Rate | [3] | 2.45% | 2.59% |
Dollar-denominated | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), and Foreign Exchange Rates | Foreign currency swaps | Assets | Lower Limit | Level 3 | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Fair Value Inputs, Discount Rate | [3] | 2.18% | 2.34% |
Dollar-denominated | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), and Foreign Exchange Rates | Foreign currency swaps | Assets | Upper Limit | Level 3 | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Fair Value Inputs, Discount Rate | [3] | 2.45% | 2.59% |
Yen-denominated | Fixed maturities | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Available-for-sale Securities | $ 40,054 | $ 37,149 | |
Yen-denominated | Equity securities | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Available-for-sale Securities | 721 | 705 | |
Yen-denominated | Mortgage- and asset-backed securities | Fixed maturities | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Available-for-sale Securities | 304 | 1,121 | |
Yen-denominated | Public utilities | Fixed maturities | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Available-for-sale Securities | 1,955 | 1,848 | |
Yen-denominated | Banks/financial institutions | Fixed maturities | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Available-for-sale Securities | 3,370 | 3,002 | |
Yen-denominated | Banks/financial institutions | Perpetual securities | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Available-for-sale Securities | 1,473 | 1,345 | |
Yen-denominated | Other corporate | Fixed maturities | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Available-for-sale Securities | 4,009 | 3,812 | |
Yen-denominated | Other corporate | Perpetual securities | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Available-for-sale Securities | $ 219 | $ 213 | |
Yen-denominated | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), CDS Spreads and Foreign Exchange Rates | Foreign currency swaps | Assets | Lower Limit | Level 3 | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Fair Value Inputs, Discount Rate | [4] | 0.20% | 0.22% |
Yen-denominated | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), CDS Spreads and Foreign Exchange Rates | Foreign currency swaps | Assets | Upper Limit | Level 3 | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Fair Value Inputs, Discount Rate | [4] | 0.73% | 0.80% |
Yen-denominated | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), and CDS Spread | Foreign currency swaps | Assets | Lower Limit | Level 3 | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Fair Value Inputs, Discount Rate | [4] | 0.20% | 0.22% |
Yen-denominated | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), and CDS Spread | Foreign currency swaps | Assets | Upper Limit | Level 3 | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Fair Value Inputs, Discount Rate | [4] | 0.73% | 0.80% |
Yen-denominated | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), and Foreign Exchange Rates | Foreign currency swaps | Assets | Lower Limit | Level 3 | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Fair Value Inputs, Discount Rate | [4] | 0.20% | 0.22% |
Yen-denominated | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), and Foreign Exchange Rates | Foreign currency swaps | Assets | Upper Limit | Level 3 | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Fair Value Inputs, Discount Rate | [4] | 0.73% | 0.80% |
[1] | Based on 10 year volatility of JPY/USD exchange rate | ||
[2] | Range of base correlation for our bespoke tranche for attachment and detachment points corresponding to market indices. | ||
[3] | Inputs derived from U.S. long-term rates to accommodate long maturity nature of our swaps | ||
[4] | Inputs derived from Japan long-term rates to accommodate long maturity nature of our swaps |
FAIR VALUE MEASUREMENTS - Fai62
FAIR VALUE MEASUREMENTS - Fair Value Inputs Liabilities Quantitative Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Liability derivatives | $ 1,099 | $ 1,998 | |
Liabilities, fair value disclosure | $ 1,099 | $ 1,998 | |
Length of Volatility of Japanese Yen to US Dollar Exchange Rate | 10 years | 10 years | |
Level 3 | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Liabilities, fair value disclosure | $ 125 | $ 146 | |
Foreign currency swaps | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Liability derivatives | 224 | 230 | |
Foreign currency swaps | Level 3 | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Liability derivatives | 125 | 146 | |
Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), CDS Spreads and Foreign Exchange Rates | Foreign currency swaps | Discounted cash flow valuation technique | Level 3 | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Liability derivatives | $ 106 | $ 113 | |
Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), CDS Spreads and Foreign Exchange Rates | Foreign currency swaps | Liability | Level 3 | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Fair Value Inputs, Foreign Exchange Rates | [1] | 21.34% | 21.47% |
Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), CDS Spreads and Foreign Exchange Rates | Foreign currency swaps | Liability | Lower Limit | Level 3 | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Fair Value Inputs, Entity Credit Risk | 0.11% | 0.17% | |
Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), CDS Spreads and Foreign Exchange Rates | Foreign currency swaps | Liability | Upper Limit | Level 3 | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Fair Value Inputs, Entity Credit Risk | 1.47% | 1.72% | |
Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), and CDS Spread | Foreign currency swaps | Discounted cash flow valuation technique | Level 3 | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Liability derivatives | $ 13 | $ 23 | |
Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), and CDS Spread | Foreign currency swaps | Liability | Lower Limit | Level 3 | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Fair Value Inputs, Entity Credit Risk | 0.15% | 0.24% | |
Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), and CDS Spread | Foreign currency swaps | Liability | Upper Limit | Level 3 | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Fair Value Inputs, Entity Credit Risk | 1.68% | 2.16% | |
Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), and Foreign Exchange Rates | Foreign currency swaps | Discounted cash flow valuation technique | Level 3 | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Liability derivatives | $ 6 | $ 10 | |
Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), and Foreign Exchange Rates | Foreign currency swaps | Liability | Level 3 | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Fair Value Inputs, Foreign Exchange Rates | [1] | 21.34% | 21.47% |
Dollar-denominated | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), CDS Spreads and Foreign Exchange Rates | Foreign currency swaps | Liability | Lower Limit | Level 3 | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Fair Value Inputs, Discount Rate | [2] | 2.18% | 2.34% |
Dollar-denominated | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), CDS Spreads and Foreign Exchange Rates | Foreign currency swaps | Liability | Upper Limit | Level 3 | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Fair Value Inputs, Discount Rate | [2] | 2.45% | 2.59% |
Dollar-denominated | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), and CDS Spread | Foreign currency swaps | Liability | Lower Limit | Level 3 | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Fair Value Inputs, Discount Rate | [2] | 2.18% | 2.34% |
Dollar-denominated | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), and CDS Spread | Foreign currency swaps | Liability | Upper Limit | Level 3 | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Fair Value Inputs, Discount Rate | [2] | 2.45% | 2.59% |
Dollar-denominated | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), and Foreign Exchange Rates | Foreign currency swaps | Liability | Lower Limit | Level 3 | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Fair Value Inputs, Discount Rate | [2] | 2.18% | 2.34% |
Dollar-denominated | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), and Foreign Exchange Rates | Foreign currency swaps | Liability | Upper Limit | Level 3 | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Fair Value Inputs, Discount Rate | [2] | 2.45% | 2.59% |
Yen-denominated | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), CDS Spreads and Foreign Exchange Rates | Foreign currency swaps | Liability | Lower Limit | Level 3 | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Fair Value Inputs, Discount Rate | [3] | 0.20% | 0.22% |
Yen-denominated | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), CDS Spreads and Foreign Exchange Rates | Foreign currency swaps | Liability | Upper Limit | Level 3 | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Fair Value Inputs, Discount Rate | [3] | 0.73% | 0.80% |
Yen-denominated | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), and CDS Spread | Foreign currency swaps | Liability | Lower Limit | Level 3 | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Fair Value Inputs, Discount Rate | [3] | 0.20% | 0.22% |
Yen-denominated | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), and CDS Spread | Foreign currency swaps | Liability | Upper Limit | Level 3 | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Fair Value Inputs, Discount Rate | [3] | 0.73% | 0.80% |
Yen-denominated | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), and Foreign Exchange Rates | Foreign currency swaps | Liability | Lower Limit | Level 3 | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Fair Value Inputs, Discount Rate | [3] | 0.20% | 0.22% |
Yen-denominated | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), and Foreign Exchange Rates | Foreign currency swaps | Liability | Upper Limit | Level 3 | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Fair Value Inputs, Discount Rate | [3] | 0.73% | 0.80% |
[1] | Based on 10 year volatility of JPY/USD exchange rate | ||
[2] | Inputs derived from U.S. long-term rates to accommodate long maturity nature of our swaps | ||
[3] | Inputs derived from Japan long-term rates to accommodate long maturity nature of our swaps |
POLICY LIABILITIES - Changes in
POLICY LIABILITIES - Changes in Liability for Unpaid Policy Claims (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Liability for Unpaid Claims and Claims Expenses | ||
Net balance, beginning of year | $ 4,045 | |
Less claims paid during the year on claims incurred during: | ||
Net balance, end of year | 4,230 | |
Total liability for unpaid policy claims | 4,230 | $ 3,990 |
Health insurance | ||
Liability for Unpaid Claims and Claims Expenses | ||
Unpaid supplemental health claims, beginning of year | 3,707 | 3,548 |
Less reinsurance recoverables | 27 | 26 |
Net balance, beginning of year | 3,680 | 3,522 |
Add claims incurred during the year related to: | ||
Current year | 1,737 | 1,705 |
Prior years | (111) | (142) |
Total incurred | 1,626 | 1,563 |
Less claims paid during the year on claims incurred during: | ||
Current year | 505 | 493 |
Prior years | 1,055 | 1,046 |
Total paid | 1,560 | 1,539 |
Effect of foreign exchange rate changes on unpaid claims | 80 | 136 |
Net balance, end of year | 3,826 | 3,682 |
Add reinsurance recoverables | 29 | 28 |
Total liability for unpaid policy claims | 3,855 | 3,710 |
Life insurance | ||
Less claims paid during the year on claims incurred during: | ||
Total liability for unpaid policy claims | $ 375 | $ 280 |
REINSURANCE - Additional Infor
REINSURANCE - Additional Information (Details) $ in Millions, ¥ in Billions | 3 Months Ended | ||
Mar. 31, 2017JPY (¥) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Effects of Reinsurance [Line Items] | |||
Percent change in spot yen/dollar exchange rate | 4.00% | ||
Percent change in ceded reserves | 1.00% | ||
Aflac Japan | |||
Effects of Reinsurance [Line Items] | |||
Committed reinsurance facility | ¥ | ¥ 110 | ||
Aflac Japan | Closed Block | |||
Effects of Reinsurance [Line Items] | |||
Reinsurance deferred profit liability | $ 919 | ||
Reinsurance recoverable | $ 900 | $ 860 |
REINSURANCE - Effect of Reinsu
REINSURANCE - Effect of Reinsurance on Premiums and Benefits and Claims (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Effects of Reinsurance [Line Items] | ||
Direct premium income | $ 4,724 | $ 4,690 |
Net premium income | 4,638 | 4,602 |
Direct benefits and claims | 3,129 | 3,103 |
Benefits and claims, net | 3,052 | 3,025 |
All other | ||
Effects of Reinsurance [Line Items] | ||
Ceded premiums | (12) | (12) |
Assumed premiums earned | 2 | 2 |
Ceded benefits and claims | (11) | (10) |
Assumed benefits and claims from other companies | 2 | 0 |
Aflac Japan | ||
Effects of Reinsurance [Line Items] | ||
Net premium income | 3,194 | 3,179 |
Aflac Japan | Closed Block | ||
Effects of Reinsurance [Line Items] | ||
Ceded premiums | (130) | (134) |
Assumed premiums earned | 54 | 56 |
Ceded benefits and claims | (122) | (121) |
Assumed benefits and claims from other companies | 54 | 53 |
Intercompany eliminations | ||
Effects of Reinsurance [Line Items] | ||
Ceded benefits and claims | 13 | 14 |
Assumed benefits and claims from other companies | $ (13) | $ (14) |
NOTES PAYABLE - Additional Info
NOTES PAYABLE - Additional Information (Details) ¥ in Millions | 1 Months Ended | 3 Months Ended | |||
Feb. 28, 2017USD ($) | Jan. 31, 2017JPY (¥) | Mar. 31, 2017USD ($) | Mar. 31, 2017JPY (¥) | Dec. 31, 2016 | |
2.65% senior notes paid February 2017 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate | 2.65% | 2.65% | |||
Repayments of debt | $ 650,000,000 | ||||
.932% senior notes due January 2027 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, principal amount | ¥ | ¥ 60,000 | ¥ 60,000 | |||
Debt instrument, interest rate | 0.932% | 0.932% | 0.932% | ||
Debt instrument, term | 10 years | ||||
Notes payable | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, debt default, amount | $ 0 | ||||
$100 million dollar line of credit | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | $ 100,000,000 | ||||
Line of credit facility term | 364 days | ||||
Line of credit facility, interest rate description | Borrowings will bear interest at the rate quoted by the bank and agreed upon at the time of making such loan and will have up to a three-month maturity period. | ||||
Line of credit facility, amount outstanding | $ 0 | ||||
100.0 billion yen line of credit | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | ¥ | ¥ 100,000 | ||||
Line of credit facility term | 3 years | ||||
Line of credit facility, interest rate description | Borrowings bear interest at a rate per annum equal to the Tokyo interbank market rate (TIBOR) plus, at our option, either (a) the applicable TIBOR margin during the period from the closing date to the commitment termination date or (b) the applicable TIBOR margin during the term out period. The applicable margin ranges between .35% and .75% during the period from the closing date to the commitment termination date and .70% and 1.50% during the term out period, depending on the Parent Company’s debt ratings as of the date of determination. | ||||
Line of credit facility, amount outstanding | ¥ | 0 | ||||
55.0 billion yen line of credit | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | ¥ | 55,000 | ||||
Line of credit facility term | 5 years | ||||
Line of credit facility, interest rate description | Borrowings bear interest at a rate per annum equal to, at our option, either (a) a eurocurrency rate determined by reference to the LIBOR for the interest period relevant to such borrowing adjusted for certain additional costs or (b) a base rate determined by reference to the highest of (1) the federal funds effective rate plus ½ of 1%, (2) the rate of interest for such day announced by Mizuho Bank, Ltd. as its prime rate and (3) the eurocurrency rate for an interest period of one month plus 1.00%, in each case plus an applicable margin. The applicable margin ranges between .79% and 1.275% for eurocurrency rate borrowings and 0.0% and .275% for base rate borrowings, depending on the Parent Company’s debt ratings as of the date of determination. | ||||
Line of credit facility, amount outstanding | ¥ | ¥ 0 | ||||
$50 million dollar line of credit | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | $ 50,000,000 | ||||
Line of credit facility, interest rate description | Borrowings will bear interest at the rate quoted by the bank and agreed upon at the time of making such loan and will have up to a three-month maturity period. | ||||
Line of credit facility, amount outstanding | $ 0 | ||||
Line of credit | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, debt default, amount | $ 0 | ||||
Lower Limit | 100.0 billion yen line of credit | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, commitment fee percentage | 0.30% | ||||
Lower Limit | 55.0 billion yen line of credit | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, commitment fee percentage | 0.085% | ||||
Upper Limit | 100.0 billion yen line of credit | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, commitment fee percentage | 0.50% | ||||
Upper Limit | 55.0 billion yen line of credit | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, commitment fee percentage | 0.225% |
NOTES PAYABLE - Summary of Note
NOTES PAYABLE - Summary of Notes Payable (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Notes payable | $ 5,250 | $ 5,360 |
2.65% senior notes paid February 2017 | ||
Debt Instrument [Line Items] | ||
Notes payable | 0 | 649 |
2.40% senior notes due March 2020 | ||
Debt Instrument [Line Items] | ||
Notes payable | 545 | 547 |
4.00% senior notes due February 2022 | ||
Debt Instrument [Line Items] | ||
Notes payable | 346 | 348 |
3.625% senior notes due June 2023 | ||
Debt Instrument [Line Items] | ||
Notes payable | 693 | 696 |
3.625% senior notes due November 2024 | ||
Debt Instrument [Line Items] | ||
Notes payable | 742 | 745 |
3.25% senior notes due March 2025 | ||
Debt Instrument [Line Items] | ||
Notes payable | 444 | 445 |
2.875% senior notes due October 2026 | ||
Debt Instrument [Line Items] | ||
Notes payable | 298 | 298 |
6.90% senior notes due December 2039 | ||
Debt Instrument [Line Items] | ||
Notes payable | 221 | 220 |
6.45% senior notes due August 2040 | ||
Debt Instrument [Line Items] | ||
Notes payable | 255 | 254 |
4.00% senior notes due October 2046 | ||
Debt Instrument [Line Items] | ||
Notes payable | 394 | 394 |
5.50% subordinated notes due September 2052 | ||
Debt Instrument [Line Items] | ||
Notes payable | 495 | 486 |
.932% senior notes due January 2027 | ||
Debt Instrument [Line Items] | ||
Notes payable | 531 | 0 |
Yen-denominated loan variable interest rate due September 2021 | ||
Debt Instrument [Line Items] | ||
Notes payable | 44 | 43 |
Yen-denominated loan variable interest rate due September 2023 | ||
Debt Instrument [Line Items] | ||
Notes payable | 222 | 214 |
Capitalized Lease Obligations | ||
Debt Instrument [Line Items] | ||
Notes payable | $ 20 | $ 21 |
NOTES PAYABLE - Summary of No68
NOTES PAYABLE - Summary of Notes Payable (Parenthetical) (Details) $ in Millions, ¥ in Billions | Mar. 31, 2017USD ($) | Mar. 31, 2017JPY (¥) | Feb. 28, 2017 | Jan. 31, 2017JPY (¥) | Dec. 31, 2016JPY (¥) |
2.65% senior notes paid February 2017 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate | 2.65% | 2.65% | |||
2.40% senior notes due March 2020 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate | 2.40% | 2.40% | 2.40% | ||
Debt instrument, principal amount | $ 550 | ||||
4.00% senior notes due February 2022 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate | 4.00% | 4.00% | 4.00% | ||
Debt instrument, principal amount | $ 350 | ||||
3.625% senior notes due June 2023 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate | 3.625% | 3.625% | 3.625% | ||
Debt instrument, principal amount | $ 700 | ||||
3.625% senior notes due November 2024 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate | 3.625% | 3.625% | 3.625% | ||
Debt instrument, principal amount | $ 750 | ||||
3.25% senior notes due March 2025 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate | 3.25% | 3.25% | 3.25% | ||
Debt instrument, principal amount | $ 450 | ||||
2.875% senior notes due October 2026 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate | 2.875% | 2.875% | 2.875% | ||
6.90% senior notes due December 2039 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate | 6.90% | 6.90% | 6.90% | ||
6.45% senior notes due August 2040 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate | 6.45% | 6.45% | 6.45% | ||
4.00% senior notes due October 2046 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate | 4.00% | 4.00% | 4.00% | ||
5.50% subordinated notes due September 2052 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate | 5.50% | 5.50% | 5.50% | ||
Debt instrument, principal amount | $ 500 | ||||
.932% senior notes due January 2027 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate | 0.932% | 0.932% | 0.932% | ||
Debt instrument, principal amount | ¥ | ¥ 60 | ¥ 60 | |||
Yen-denominated loan variable interest rate due September 2021 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate | 0.31% | 0.31% | 0.31% | ||
Debt instrument, principal amount | ¥ | ¥ 5 | ¥ 5 | |||
Yen-denominated loan variable interest rate due September 2023 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate | 0.46% | 0.46% | 0.46% | ||
Debt instrument, principal amount | ¥ | ¥ 25 | ¥ 25 |
SHAREHOLDERS' EQUITY - Reconcil
SHAREHOLDERS' EQUITY - Reconciliation of Number of Shares of Common Stock (Detail) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Common Stock Issued [Roll Forward] | ||
Balance, beginning of period | 671,249 | 669,723 |
Exercise of stock options and issuance of restricted shares | 434 | 678 |
Balance, end of period | 671,683 | 670,401 |
Treasury Stock [Roll Forward] | ||
Balance, beginning of period | 265,439 | 245,343 |
Balance, end of period | 273,681 | 255,198 |
Shares outstanding, end of period | 398,002 | 415,203 |
Treasury Stock | ||
Treasury Stock [Roll Forward] | ||
Stock Acquired In Open Market, Shares | 8,493 | 10,152 |
Other purchases | 144 | 189 |
Shares issued to AFL Stock Plan | (247) | (311) |
Exercise of stock options | (128) | (64) |
Other dispositions | (20) | (111) |
SHAREHOLDERS' EQUITY - Anti-Dil
SHAREHOLDERS' EQUITY - Anti-Dilutive Share-Based Awards Excluded from Calculation of Diluted Earnings Per Share (Detail) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Stockholders' Equity Note [Abstract] | ||
Anti-dilutive share-based awards | 321 | 2,682 |
SHAREHOLDERS' EQUITY - Addition
SHAREHOLDERS' EQUITY - Additional Information (Detail) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Stockholders Equity Note [Line Items] | ||
Common stock, share repurchase, dollar amount | $ 610 | $ 612 |
Remaining common stock available for purchase under share repurchase authorizations | 18.3 | |
Share Repurchase Program | ||
Stockholders Equity Note [Line Items] | ||
Stock Acquired In Open Market, Shares | 8.5 | 10.2 |
Common stock, share repurchase, dollar amount | $ 600 | $ 600 |
SHAREHOLDERS' EQUITY - Changes
SHAREHOLDERS' EQUITY - Changes in Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Accumulated Other Comprehensive Income [Roll Forward] | |||
Balance, beginning of period | [1] | $ 2,630 | $ 625 |
Other comprehensive income loss before reclassifications net of tax | [1] | (10) | 2,361 |
Amounts reclassified from accumulated other comprehensive income net of tax | [1] | 12 | (50) |
Other comprehensive income (loss), net of tax | [1] | 2 | 2,311 |
Balance, end of period | [1] | 2,632 | 2,936 |
Unrealized foreign currency translation gains (losses) | |||
Accumulated Other Comprehensive Income [Roll Forward] | |||
Balance, beginning of period | [1] | (1,983) | (2,196) |
Other comprehensive income loss before reclassifications net of tax | [1] | 333 | 612 |
Amounts reclassified from accumulated other comprehensive income net of tax | [1] | 0 | 0 |
Other comprehensive income (loss), net of tax | [1] | 333 | 612 |
Balance, end of period | [1] | (1,650) | (1,584) |
Unrealized gains (losses) on investment securities | |||
Accumulated Other Comprehensive Income [Roll Forward] | |||
Balance, beginning of period | [1] | 4,805 | 2,986 |
Other comprehensive income loss before reclassifications net of tax | [1] | (341) | 1,748 |
Amounts reclassified from accumulated other comprehensive income net of tax | [1] | 10 | (50) |
Other comprehensive income (loss), net of tax | [1] | (331) | 1,698 |
Balance, end of period | [1] | 4,474 | 4,684 |
Unrealized gains (losses) on derivatives | |||
Accumulated Other Comprehensive Income [Roll Forward] | |||
Balance, beginning of period | [1] | (24) | (26) |
Other comprehensive income loss before reclassifications net of tax | [1] | 2 | 2 |
Amounts reclassified from accumulated other comprehensive income net of tax | [1] | 0 | 0 |
Other comprehensive income (loss), net of tax | [1] | 2 | 2 |
Balance, end of period | [1] | (22) | (24) |
Pension liability adjustment | |||
Accumulated Other Comprehensive Income [Roll Forward] | |||
Balance, beginning of period | [1] | (168) | (139) |
Other comprehensive income loss before reclassifications net of tax | [1] | (4) | (1) |
Amounts reclassified from accumulated other comprehensive income net of tax | [1] | 2 | 0 |
Other comprehensive income (loss), net of tax | [1] | (2) | (1) |
Balance, end of period | [1] | $ (170) | $ (140) |
[1] | All amounts in the table above are net of tax. |
SHAREHOLDERS' EQUITY - Reclassi
SHAREHOLDERS' EQUITY - Reclassifications Out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Sales and redemptions | $ (7) | $ 91 | |
Other than temporary impairment losses realized | (10) | (14) | |
Total before tax | 898 | 1,117 | |
Income tax (expense) or benefit | (306) | (386) | |
Net of tax | $ 592 | $ 731 | |
The expected U.S. tax rate | 35.00% | 35.00% | |
Reclassification Out Of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net of tax | $ (12) | $ 50 | |
Reclassification Out Of Accumulated Other Comprehensive Income | Unrealized gains (losses) on investment securities | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Sales and redemptions | (6) | 91 | |
Other than temporary impairment losses realized | (10) | (14) | |
Total before tax | (16) | 77 | |
Income tax (expense) or benefit | [1] | 6 | (27) |
Net of tax | (10) | 50 | |
Reclassification Out Of Accumulated Other Comprehensive Income | Pension liability adjustment | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Acquisition and operating expenses, actuarial gains (losses) | [2] | (3) | (3) |
Acquisition and operating expenses, prior service (cost) credit | [2] | 0 | 3 |
Income tax (expense) or benefit | [1] | 1 | 0 |
Net of tax | $ (2) | $ 0 | |
[1] | Based on 35% tax rate | ||
[2] | These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 11 for additional details). |
SHARE-BASED COMPENSATION - Addi
SHARE-BASED COMPENSATION - Additional Information (Detail) - USD ($) shares in Thousands, $ in Millions | 1 Months Ended | 3 Months Ended | ||
Feb. 28, 2017 | Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Proceeds from stock options exercised | $ 17 | $ 10 | ||
Tax benefit from stock options exercised | $ 14 | $ 13 | ||
2004 Long-Term Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation arrangement by share-based payment award, maximum number of shares issuable | 25,000 | |||
Share-based compensation arrangement by share-based payment award, maximum number of shares issuable other than options and stock appreciation rights | 12,000 | |||
Shares available for future grants under the long-term incentive plan | 8,000 | |||
Long-term incentive plan awards, term (in years) | 10 years | |||
Long-term incentive plan awards, vesting period | 3 years | |||
Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total compensation cost not yet recognized, restricted stock awards | $ 62 | |||
Total compensation cost not yet recognized, restricted stock awards, shares | 1,916 | 1,868 | ||
Total compensation cost not yet recognized, restricted stock awards, weighted-average period (in years) | 1 year 8 months 12 days | |||
Restricted stock awards, grants in period | 489 | |||
Performance based Vesting Condition | Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total compensation cost not yet recognized, restricted stock awards | $ 29 | |||
Total compensation cost not yet recognized, restricted stock awards, shares | 973 | |||
Restricted stock awards, grants in period | 253 |
SHARE-BASED COMPENSATION - Stoc
SHARE-BASED COMPENSATION - Stock Options Outstanding and Exercisable (Detail) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended |
Mar. 31, 2017USD ($)$ / sharesshares | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Options Outstanding - Stock Option Shares | shares | 6,245 |
Options Outstanding - Weighted-Average Remaining Term (Yrs) | 4 years 10 months 24 days |
Options Outstanding - Aggregate Intrinsic Value | $ | $ 119 |
Options Outstanding - Weighted-Average Exercise Price Per Share | $ / shares | $ 53.38 |
Options Exercisable - Stock Option Shares | shares | 4,504 |
Options Exercisable - Weighted-Average Remaining Term (Yrs.) | 3 years 4 months 24 days |
Options Exercisable - Aggregate Intrinsic Value | $ | $ 102 |
Options Exercisable - Weighted-Average Exercise Price Per Share | $ / shares | $ 49.72 |
SHARE-BASED COMPENSATION - Rest
SHARE-BASED COMPENSATION - Restricted Stock Activity (Details) - Restricted Stock shares in Thousands | 3 Months Ended |
Mar. 31, 2017$ / sharesshares | |
Shares | |
Beginning Balance | shares | 1,868 |
Granted | shares | 489 |
Canceled | shares | (4) |
Vested | shares | (437) |
Ending Balance | shares | 1,916 |
Weighted-Average Grant-Date Fair Value Per Share | |
Beginning Balance | $ / shares | $ 61.76 |
Granted | $ / shares | 71.97 |
Cancelled | $ / shares | 65.05 |
Vested | $ / shares | 62.23 |
Ending Balance | $ / shares | $ 64.12 |
BENEFIT PLANS - Additional Info
BENEFIT PLANS - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2013 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Amount of years active employees have left to meet rule of 80 in order to be eligible for postretirement medical benefits | 5 years | |
Amount of years left to meet 15 year service requirement for active employees age 55 or older to be eligible for postretirement medical benefits | 5 years | |
Lower Limit | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Health care plan, retirement age for eligibility, (in years) | 55 years | |
Health care plan, number of years of service for eligibility | 15 years | |
Health care plan, retirement age and years of service combined years for eligibility (rule of 80) | 80 years | |
Japanese Pension Plan | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Employer contributions | $ 6 | |
U.S. Pension Plan | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Employer contributions | $ 0 |
BENEFIT PLANS - Net Periodic (B
BENEFIT PLANS - Net Periodic (Benefit) Cost Included in Acquisition and Operating Expenses (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Japanese Pension Plan | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Service cost | $ 5 | $ 4 |
Interest cost | 1 | 2 |
Expected return on plan assets | (1) | (1) |
Amortization of net actuarial loss | 0 | 0 |
Amortization of prior service cost (credit) | 0 | 0 |
Net periodic (benefit) cost | 5 | 5 |
U.S. Pension Plan | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Service cost | 6 | 6 |
Interest cost | 8 | 8 |
Expected return on plan assets | (6) | (6) |
Amortization of net actuarial loss | 3 | 3 |
Amortization of prior service cost (credit) | 0 | 0 |
Net periodic (benefit) cost | 11 | 11 |
Other Postretirement Benefit Plans, Defined Benefit | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Service cost | 0 | 0 |
Interest cost | 0 | 0 |
Expected return on plan assets | 0 | 0 |
Amortization of net actuarial loss | 0 | 0 |
Amortization of prior service cost (credit) | 0 | (3) |
Net periodic (benefit) cost | $ 0 | $ (3) |
COMMITMENTS AND CONTINGENT LI79
COMMITMENTS AND CONTINGENT LIABILITIES - Additional Information (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Other Commitments [Line Items] | |
Loss contingency accrual, insurance-related assessment, discount rate | 4.25% |
Loss contingency, discounted amount of insurance-related assessment liability | $ 62 |
Loss contingency, undiscounted amount of insurance-related assessment liability | 94 |
Loss contingency, insurance-related assessment, discounted amount of premium tax offset | 48 |
Loss contingency, insurance-related assessment, undiscounted amount of premium tax offset | $ 74 |
Loss contingency, discounted amount of insurance-related assessment liability, payment period (in years) | 1 |
Loss contingency, discounted amount of insurance-related assessment liability, realization period for associated asset offsets (in years) | 5 |
Loss contingency, loss in period | $ 14 |