Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2021 | Oct. 19, 2021 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-07434 | |
Entity Registrant Name | Aflac Incorporated | |
Entity Incorporation, State or Country Code | GA | |
Entity Tax Identification Number | 58-1167100 | |
Entity Address, Address Line One | 1932 Wynnton Road | |
Entity Address, City or Town | Columbus, | |
Entity Address, State or Province | GA | |
Entity Address, Postal Zip Code | 31999 | |
City Area Code | 706. | |
Local Phone Number | 323.3431 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 661,528,219 | |
Amendment Flag | false | |
Entity Central Index Key | 0000004977 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2021 | |
NEW YORK STOCK EXCHANGE, INC. | ||
Title of 12(b) Security | Common Stock, $.10 par value per share | |
Trading Symbol | AFL | |
Security Exchange Name | NYSE |
Consolidated Statements of Earn
Consolidated Statements of Earnings - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | ||
Revenues: | |||||
Net premium income | $ 4,372 | $ 4,623 | $ 13,406 | $ 13,969 | |
Net investment income | 991 | 896 | 2,908 | 2,669 | |
Net investment gains (losses) | (171) | 108 | 224 | (525) | |
Other income (loss) | 45 | 38 | 132 | 121 | |
Total revenues | 5,237 | 5,665 | 16,670 | 16,234 | |
Benefits and expenses: | |||||
Benefits and claims, net | 2,609 | 2,985 | 7,996 | 8,822 | |
Acquisition and operating expenses: | |||||
Amortization of deferred policy acquisition costs | 278 | 292 | 869 | 914 | |
Insurance commissions | 311 | 325 | 952 | 993 | |
Insurance and other expenses | [1] | 869 | 847 | 2,582 | 2,382 |
Interest expense | 57 | 63 | 181 | 181 | |
Total acquisition and operating expenses | 1,515 | 1,527 | 4,584 | 4,470 | |
Total benefits and expenses | 4,124 | 4,512 | 12,580 | 13,292 | |
Earnings before income taxes | 1,113 | 1,153 | 4,090 | 2,942 | |
Income taxes | 225 | (1,303) | 804 | (884) | |
Net earnings | $ 888 | $ 2,456 | $ 3,286 | $ 3,826 | |
Net earnings per share: | |||||
Basic (in dollars per share) | $ 1.33 | $ 3.45 | $ 4.84 | $ 5.33 | |
Diluted (in dollars per share) | $ 1.32 | $ 3.44 | $ 4.82 | $ 5.31 | |
Weighted-average outstanding common shares used in computing earnings per share (In thousands): | |||||
Basic (in shares) | 668,762 | 711,698 | 678,509 | 717,962 | |
Diluted (in shares) | 671,925 | 713,793 | 681,521 | 720,333 | |
Cash dividends per share | $ 0.33 | $ 0.28 | $ 0.99 | $ 0.84 | |
[1] | Includes expense of $48 and $15 for the nine-month periods ended September 30, 2021 and 2020, respectively, for the early extinguishment of debt. |
Consolidated Statements of Ea_2
Consolidated Statements of Earnings (Parenthetical) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
3.625% senior notes paid May 2021 | ||
Expense on extinguishment of debt | $ 48 | |
4.00% senior notes paid January 2020 | ||
Expense on extinguishment of debt | $ 15 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net earnings | $ 888 | $ 2,456 | $ 3,286 | $ 3,826 |
Other comprehensive income (loss) before income taxes: | ||||
Unrealized foreign currency translation gains (losses) during period | (93) | 172 | (646) | 329 |
Unrealized gains (losses) on fixed maturity securities: | ||||
Unrealized holding gains (losses) on fixed maturity securities during period | (316) | 1,420 | (800) | 26 |
Reclassification adjustment for (gains) losses on fixed maturity securities included in net earnings | (13) | (13) | 2 | 132 |
Unrealized gains (losses) on derivatives during period | 2 | 2 | 3 | (3) |
Pension liability adjustment during period | 1 | (1) | 7 | (1) |
Total other comprehensive income (loss) before income taxes | (419) | 1,580 | (1,434) | 483 |
Income tax expense (benefit) related to items of other comprehensive income (loss) | (62) | 413 | (162) | 29 |
Other comprehensive income (loss), net of income taxes | (357) | 1,167 | (1,272) | 454 |
Total comprehensive income (loss) | $ 531 | $ 3,623 | $ 2,014 | $ 4,280 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 | ||
Investments and Cash: | ||||
Available for sale, fixed maturity securities | $ 100,722 | $ 105,882 | ||
Held to maturity, fixed maturity securities | 22,613 | [1] | 24,464 | |
Equity securities | 1,461 | 1,283 | ||
Commercial mortgage and other loans | 11,388 | 10,554 | ||
Other investments | 3,612 | 2,429 | ||
Cash and cash equivalents | 6,208 | 5,141 | ||
Total investments and cash | 146,004 | 149,753 | ||
Receivables | 787 | 796 | ||
Accrued investment income | 701 | 780 | ||
Deferred policy acquisition costs | 9,714 | 10,441 | ||
Property and equipment, at cost less accumulated depreciation | 542 | 601 | ||
Other | 2,849 | 2,715 | ||
Total assets | 160,597 | 165,086 | ||
Policy Liabilities: | ||||
Future policy benefits | 92,434 | 97,783 | ||
Unpaid policy claims | 4,909 | 5,187 | ||
Unearned premiums | 2,814 | 3,597 | ||
Other policyholders’ funds | 7,286 | 7,824 | ||
Total policy liabilities | 107,443 | 114,391 | ||
Income taxes | 4,577 | 4,661 | ||
Payables for return of cash collateral on loaned securities | 2,849 | 964 | ||
Notes payable and lease obligations | 8,066 | 7,899 | ||
Other | 4,110 | 3,612 | ||
Total liabilities | 127,045 | 131,527 | ||
Commitments and contingent liabilities (Note 12) | ||||
Shareholders’ equity: | ||||
Common stock of $.10 par value. In thousands: authorized 1,900,000 shares in 2021 and 2020; issued 1,352,562 shares in 2021 and 1,351,018 shares in 2020 | 135 | 135 | ||
Additional paid-in capital | 2,491 | 2,410 | ||
Retained earnings | 40,830 | 37,984 | ||
Accumulated other comprehensive income (loss): | ||||
Unrealized foreign currency translation gains (losses) | (1,760) | (1,109) | ||
Unrealized gains (losses) on fixed maturity securities | 9,731 | 10,361 | ||
Unrealized gains (losses) on derivatives | (31) | (34) | ||
Pension liability adjustment | (278) | (284) | ||
Treasury stock, at average cost | (17,566) | (15,904) | ||
Total shareholders’ equity | 33,552 | 33,559 | ||
Total liabilities and shareholders’ equity | 160,597 | 165,086 | ||
Consolidated Entity Excluding Variable Interest Entities (VIE) | ||||
Investments and Cash: | ||||
Available for sale, fixed maturity securities | 96,285 | 101,286 | ||
Variable Interest Entity, Consolidated | ||||
Investments and Cash: | ||||
Available for sale, fixed maturity securities | 4,437 | 4,596 | ||
Commercial mortgage and other loans | [2] | 9,543 | 8,964 | |
Other investments | [2],[3] | 1,272 | 826 | |
Policy Liabilities: | ||||
Total liabilities | [2] | $ 356 | $ 231 | |
[1] | Net of allowance for credit losses | |||
[2] | Net of allowance for credit losses | |||
[3] | Consists entirely of alternative investments in limited partnerships |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 | |
Available for sale, fixed maturity securities, amortized cost | $ 87,228 | $ 91,630 | |
Available for sale, fixed maturity securities, allowance for credit losses | 0 | 38 | |
Held to maturity, fixed maturity securities, fair value | 27,748 | 30,399 | |
Held-to-maturity, fixed maturity securities, allowance for credit losses | 9 | 10 | |
Commercial mortgage and other loans | 11,388 | 10,554 | |
Commercial mortgage and other loans, allowance for credit losses | 165 | 180 | |
Other investments | $ 3,612 | $ 2,429 | |
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 | |
Common stock, shares authorized (in shares) | 1,900,000 | 1,900,000 | |
Common stock, shares issued (in shares) | 1,352,562 | 1,351,018 | |
Consolidated Entity Excluding Variable Interest Entities (VIE) | |||
Available for sale, fixed maturity securities, amortized cost | $ 84,000 | $ 88,143 | |
Available for sale, fixed maturity securities, allowance for credit losses | 0 | 38 | |
Variable Interest Entity, Consolidated | |||
Available for sale, fixed maturity securities, amortized cost | [1] | 3,228 | 3,487 |
Commercial mortgage and other loans | [1] | 9,543 | 8,964 |
Other investments | [1],[2] | $ 1,272 | $ 826 |
[1] | Net of allowance for credit losses | ||
[2] | Consists entirely of alternative investments in limited partnerships |
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 | Cumulative effect, period of adoption, adjustment | Cumulative effect, period of adoption, adjustmentCommon stock | Cumulative effect, period of adoption, adjustmentAdditional paid-in capital | Cumulative effect, period of adoption, adjustmentRetained earnings | Cumulative effect, period of adoption, adjustmentAccumulated other comprehensive income (loss) | Cumulative effect, period of adoption, adjustmentTreasury stock | Cumulative effect, period of adoption, adjusted balance | Cumulative effect, period of adoption, adjusted balanceCommon stock | Cumulative effect, period of adoption, adjusted balanceAdditional paid-in capital | Cumulative effect, period of adoption, adjusted balanceRetained earnings | Cumulative effect, period of adoption, adjusted balanceAccumulated other comprehensive income (loss) | Cumulative effect, period of adoption, adjusted balanceTreasury stock | |
Balance, beginning of period at Dec. 31, 2019 | $ 28,959 | $ 135 | $ 2,313 | $ 34,291 | $ 6,615 | $ (14,395) | $ 29,751 | $ 135 | $ 2,313 | $ 34,235 | $ 7,463 | $ (14,395) | |||||||
Balance, beginning of period (Accounting Standards Update 2016-13) at Dec. 31, 2019 | [1] | $ (56) | $ 0 | $ 0 | $ (56) | $ 0 | $ 0 | ||||||||||||
Balance, beginning of period (Accounting Standards Update 2019-04) at Dec. 31, 2019 | [1] | 848 | 0 | 0 | 0 | 848 | 0 | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||
Net earnings | 566 | 0 | 0 | 566 | 0 | 0 | |||||||||||||
Unrealized foreign currency translation gains (losses) during period, net of income taxes | 80 | 0 | 0 | 0 | 80 | 0 | |||||||||||||
Unrealized gains (losses) on fixed maturity securities during period, net of income taxes and reclassification adjustments | (3,353) | 0 | 0 | 0 | (3,353) | 0 | |||||||||||||
Unrealized gains (losses) on derivatives during period, net of income taxes | (2) | 0 | 0 | 0 | (2) | 0 | |||||||||||||
Pension liability adjustment during period, net of income taxes | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Dividends to shareholders | (202) | 0 | 0 | (202) | 0 | 0 | |||||||||||||
Exercise of stock options | 5 | 0 | 5 | 0 | 0 | 0 | |||||||||||||
Share-based compensation | 7 | 0 | 7 | 0 | 0 | 0 | |||||||||||||
Purchases of treasury stock | (476) | 0 | 0 | 0 | 0 | (476) | |||||||||||||
Treasury stock reissued | 26 | 0 | 9 | 0 | 0 | 17 | |||||||||||||
Balance, end of period at Mar. 31, 2020 | 26,402 | 135 | 2,334 | 34,599 | 4,188 | (14,854) | |||||||||||||
Balance, beginning of period at Dec. 31, 2019 | 28,959 | 135 | 2,313 | 34,291 | 6,615 | (14,395) | $ 29,751 | $ 135 | $ 2,313 | $ 34,235 | $ 7,463 | $ (14,395) | |||||||
Balance, beginning of period (Accounting Standards Update 2016-13) at Dec. 31, 2019 | [1] | (56) | 0 | 0 | (56) | 0 | 0 | ||||||||||||
Balance, beginning of period (Accounting Standards Update 2019-04) at Dec. 31, 2019 | [1] | $ 848 | $ 0 | $ 0 | $ 0 | $ 848 | $ 0 | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||
Net earnings | 3,826 | ||||||||||||||||||
Balance, end of period at Sep. 30, 2020 | 32,479 | 135 | 2,383 | 37,460 | 7,917 | (15,416) | |||||||||||||
Balance, beginning of period at Mar. 31, 2020 | 26,402 | 135 | 2,334 | 34,599 | 4,188 | (14,854) | |||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||
Net earnings | 805 | 0 | 0 | 805 | 0 | 0 | |||||||||||||
Unrealized foreign currency translation gains (losses) during period, net of income taxes | 74 | 0 | 0 | 0 | 74 | 0 | |||||||||||||
Unrealized gains (losses) on fixed maturity securities during period, net of income taxes and reclassification adjustments | 2,489 | 0 | 0 | 0 | 2,489 | 0 | |||||||||||||
Unrealized gains (losses) on derivatives during period, net of income taxes | (1) | 0 | 0 | 0 | (1) | 0 | |||||||||||||
Pension liability adjustment during period, net of income taxes | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Dividends to shareholders | (200) | 0 | 0 | (200) | 0 | 0 | |||||||||||||
Exercise of stock options | 1 | 0 | 1 | 0 | 0 | 0 | |||||||||||||
Share-based compensation | 16 | 0 | 16 | 0 | 0 | 0 | |||||||||||||
Purchases of treasury stock | (189) | 0 | 0 | 0 | 0 | (189) | |||||||||||||
Treasury stock reissued | 23 | 0 | 7 | 0 | 0 | 16 | |||||||||||||
Balance, end of period at Jun. 30, 2020 | 29,420 | 135 | 2,358 | 35,204 | 6,750 | (15,027) | |||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||
Net earnings | 2,456 | 0 | 0 | 2,456 | 0 | 0 | |||||||||||||
Unrealized foreign currency translation gains (losses) during period, net of income taxes | 179 | 0 | 0 | 0 | 179 | 0 | |||||||||||||
Unrealized gains (losses) on fixed maturity securities during period, net of income taxes and reclassification adjustments | 988 | 0 | 0 | 0 | 988 | 0 | |||||||||||||
Unrealized gains (losses) on derivatives during period, net of income taxes | 1 | 0 | 0 | 0 | 1 | 0 | |||||||||||||
Pension liability adjustment during period, net of income taxes | (1) | 0 | 0 | 0 | (1) | 0 | |||||||||||||
Dividends to shareholders | (200) | 0 | 0 | (200) | 0 | 0 | |||||||||||||
Exercise of stock options | 2 | 0 | 2 | 0 | 0 | 0 | |||||||||||||
Share-based compensation | 16 | 0 | 16 | 0 | 0 | 0 | |||||||||||||
Purchases of treasury stock | (400) | 0 | 0 | 0 | 0 | (400) | |||||||||||||
Treasury stock reissued | 18 | 0 | 7 | 0 | 0 | 11 | |||||||||||||
Balance, end of period at Sep. 30, 2020 | 32,479 | 135 | 2,383 | 37,460 | 7,917 | (15,416) | |||||||||||||
Balance, beginning of period at Dec. 31, 2020 | 33,559 | 135 | 2,410 | 37,984 | 8,934 | (15,904) | |||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||
Net earnings | 1,293 | 0 | 0 | 1,293 | 0 | 0 | |||||||||||||
Unrealized foreign currency translation gains (losses) during period, net of income taxes | (565) | 0 | 0 | 0 | (565) | 0 | |||||||||||||
Unrealized gains (losses) on fixed maturity securities during period, net of income taxes and reclassification adjustments | (1,567) | 0 | 0 | 0 | (1,567) | 0 | |||||||||||||
Unrealized gains (losses) on derivatives during period, net of income taxes | 1 | 0 | 0 | 0 | 1 | 0 | |||||||||||||
Pension liability adjustment during period, net of income taxes | 4 | 0 | 0 | 0 | 4 | 0 | |||||||||||||
Dividends to shareholders | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Exercise of stock options | 9 | 0 | 9 | 0 | 0 | 0 | |||||||||||||
Share-based compensation | 9 | 0 | 9 | 0 | 0 | 0 | |||||||||||||
Purchases of treasury stock | (668) | 0 | 0 | 0 | 0 | (668) | |||||||||||||
Treasury stock reissued | 28 | 0 | 10 | 0 | 0 | 18 | |||||||||||||
Balance, end of period at Mar. 31, 2021 | 32,103 | 135 | 2,438 | 39,277 | 6,807 | (16,554) | |||||||||||||
Balance, beginning of period at Dec. 31, 2020 | 33,559 | 135 | 2,410 | 37,984 | 8,934 | (15,904) | |||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||
Net earnings | 3,286 | ||||||||||||||||||
Balance, end of period at Sep. 30, 2021 | 33,552 | 135 | 2,491 | 40,830 | 7,662 | (17,566) | |||||||||||||
Balance, beginning of period at Mar. 31, 2021 | 32,103 | 135 | 2,438 | 39,277 | 6,807 | (16,554) | |||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||
Net earnings | 1,105 | 0 | 0 | 1,105 | 0 | 0 | |||||||||||||
Unrealized foreign currency translation gains (losses) during period, net of income taxes | 13 | 0 | 0 | 0 | 13 | 0 | |||||||||||||
Unrealized gains (losses) on fixed maturity securities during period, net of income taxes and reclassification adjustments | 1,198 | 0 | 0 | 0 | 1,198 | 0 | |||||||||||||
Unrealized gains (losses) on derivatives during period, net of income taxes | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Pension liability adjustment during period, net of income taxes | 1 | 0 | 0 | 0 | 1 | 0 | |||||||||||||
Dividends to shareholders | (220) | 0 | 0 | (220) | 0 | 0 | |||||||||||||
Exercise of stock options | 2 | 0 | 2 | 0 | 0 | 0 | |||||||||||||
Share-based compensation | 20 | 0 | 20 | 0 | 0 | 0 | |||||||||||||
Purchases of treasury stock | (500) | 0 | 0 | 0 | 0 | (500) | |||||||||||||
Treasury stock reissued | 13 | 0 | 5 | 0 | 0 | 8 | |||||||||||||
Balance, end of period at Jun. 30, 2021 | 33,735 | 135 | 2,465 | 40,162 | 8,019 | (17,046) | |||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||
Net earnings | 888 | 0 | 0 | 888 | 0 | 0 | |||||||||||||
Unrealized foreign currency translation gains (losses) during period, net of income taxes | (99) | 0 | 0 | 0 | (99) | 0 | |||||||||||||
Unrealized gains (losses) on fixed maturity securities during period, net of income taxes and reclassification adjustments | (261) | 0 | 0 | 0 | (261) | 0 | |||||||||||||
Unrealized gains (losses) on derivatives during period, net of income taxes | 2 | 0 | 0 | 0 | 2 | 0 | |||||||||||||
Pension liability adjustment during period, net of income taxes | 1 | 0 | 0 | 0 | 1 | 0 | |||||||||||||
Dividends to shareholders | (220) | 0 | 0 | (220) | 0 | 0 | |||||||||||||
Exercise of stock options | 2 | 0 | 2 | 0 | 0 | 0 | |||||||||||||
Share-based compensation | 16 | 0 | 16 | 0 | 0 | 0 | |||||||||||||
Purchases of treasury stock | (527) | 0 | 0 | 0 | 0 | (527) | |||||||||||||
Treasury stock reissued | 15 | 0 | 8 | 0 | 0 | 7 | |||||||||||||
Balance, end of period at Sep. 30, 2021 | $ 33,552 | $ 135 | $ 2,491 | $ 40,830 | $ 7,662 | $ (17,566) | |||||||||||||
[1] | See Note 1 of the Notes to the Consolidated Financial Statements in the Company's 2020 Annual Report on Form 10-K. |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | |||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | |
Retained earnings | ||||||
Dividends to shareholders (in dollars per share) | $ 0.33 | $ 0.33 | $ 0 | $ 0.28 | $ 0.28 | $ 0.28 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Cash flows from operating activities: | ||
Net earnings | $ 3,286 | $ 3,826 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Change in receivables and advance premiums | 22 | 12 |
Capitalization of deferred policy acquisition costs | (778) | (870) |
Amortization of deferred policy acquisition costs | 869 | 914 |
Increase in policy liabilities | 770 | 1,601 |
Change in income tax liabilities | 325 | (1,509) |
Net investment (gains) losses | (224) | 525 |
Other, net | (89) | 102 |
Net cash provided (used) by operating activities | 4,181 | 4,601 |
Proceeds from investments sold or matured: | ||
Available-for-sale fixed maturity securities | 2,719 | 2,688 |
Equity securities | 210 | 217 |
Held-to-maturity fixed maturity securities | 2 | 3 |
Commercial mortgage and other loans | 2,625 | 1,115 |
Costs of investments acquired: | ||
Available for sale fixed maturity securities | (4,187) | (3,710) |
Equity securities | (458) | (275) |
Commercial mortgage and other loans | (3,434) | (2,554) |
Other investments, net | (929) | (405) |
Settlement of derivatives, net | 171 | 15 |
Cash received (pledged or returned) as collateral, net | 2,123 | (420) |
Other, net | (13) | (185) |
Net cash provided (used) by investing activities | (1,171) | (3,511) |
Cash flows from financing activities: | ||
Purchases of treasury stock | (1,676) | (1,037) |
Proceeds from borrowings | 1,153 | 1,545 |
Principal payments under debt obligations | (700) | (350) |
Dividends paid to shareholders | (647) | (580) |
Change in investment-type contracts, net | (25) | (7) |
Treasury stock reissued | 13 | 27 |
Other, net | (15) | (29) |
Net cash provided (used) by financing activities | (1,897) | (431) |
Effect of exchange rate changes on cash and cash equivalents | (46) | 8 |
Net change in cash and cash equivalents | 1,067 | 667 |
Cash and cash equivalents, beginning of period | 5,141 | 4,896 |
Cash and cash equivalents, end of period | 6,208 | 5,563 |
Supplemental disclosures of cash flow information: | ||
Income taxes paid | 478 | 626 |
Interest paid | 146 | 131 |
Noncash interest | 36 | 47 |
Noncash financing activities: | ||
Lease obligations | 36 | 31 |
Associate stock bonus | ||
Treasury stock issued for: | ||
Treasury stock issued | 16 | 12 |
Shareholder dividend reinvestment | ||
Treasury stock issued for: | ||
Treasury stock issued | 23 | 22 |
Share-based compensation grants | ||
Treasury stock issued for: | ||
Treasury stock issued | $ 4 | $ 6 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2021 | |
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 (U.S.) and Japan. The Company's insurance business is marketed and administered through American Family Life Assurance Company of Columbus (Aflac) in the U.S. and through Aflac Life Insurance Japan Ltd. (ALIJ) in Japan. The Company’s operations consist of two reportable business segments: Aflac U.S., which includes Aflac, and Aflac Japan, which includes ALIJ. 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. With the exception of group dental and vision products administered by Argus Dental & Vision, Inc. (Argus) and certain group life insurance products, Aflac U.S. markets and administers group products through Continental American Insurance Company (CAIC), branded as Aflac Group Insurance. The Company's insurance operations in the U.S. and Japan service the two markets for the Company's insurance business. Aflac Japan's revenues, including net gains and losses on its investment portfolio, accounted for 69% and 68% of the Company's total revenues in the nine-month periods ended September 30, 2021 and 2020, respectively. The percentage of the Company's total assets attributable to Aflac Japan was 82% at September 30, 2021, compared with 83% at December 31, 2020. Basis of Presentation The Company prepares its financial statements in accordance with U.S. generally accepted accounting principles (U.S. 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 the Company to make estimates based on currently available information when recording transactions resulting from business operations. The most significant items on the Company's 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 (DAC), 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, the Company believes the amounts provided are reasonable and reflective of the best estimates of management. 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 September 30, 2021 and December 31, 2020, the consolidated statements of earnings and comprehensive income (loss) for the three- and nine-month periods ended September 30, 2021 and 2020, the consolidated statement of shareholders' equity for the three-month periods ended March 31, 2021 and 2020, June 30, 2021 and 2020, and September 30, 2021 and 2020, and the consolidated statement of cash flows for the nine-month periods ended September 30, 2021 and 2020. 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 the Company's annual report on Form 10-K for the year ended December 31, 2020 (2020 Annual Report). COVID-19: The impact of the COVID-19 global pandemic on the Company continues to evolve, and its future effects remain uncertain. The Company took prompt action at the beginning of the pandemic to strengthen its capital and liquidity position, and continues to monitor its investment portfolios to adjust to market conditions, including the continuing recovery and inflation expectations. Both Aflac Japan and Aflac U.S. have accelerated investments in digital initiatives to improve productivity, efficiency and customer service over the long term. The Company continues to closely monitor the effects and risks of COVID-19, including its variants, to assess its impact on economic conditions in Japan and the U.S. and on the Company's business, financial condition, results of operations, liquidity and capital position. 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. New Accounting Pronouncements Accounting Pronouncements Pending Adoption ASU 2018-12 Financial Services - Insurance: Targeted Improvements to the Accounting for Long-Duration Contracts , as clarified and amended by: ASU 2019-09 Financial Services - Insurance: Effective Date ASU 2020-11 Financial Services - Insurance: Effective Date and Early Application In August 2018, the FASB issued amendments that will significantly change how insurers account for long-duration contracts. The amendments will change existing recognition, measurement, presentation, and disclosure requirements. Issues addressed in the new guidance include: 1) a requirement to review and, if there is a change, update assumptions for the liability for future policy benefits at least annually, and to update the discount rate assumption quarterly, 2) accounting for market risk benefits at fair value, 3) simplified amortization for deferred acquisition costs, and 4) enhanced financial statement presentation and disclosures. In November 2019, the FASB issued an amendment extending the effective date for public business entities that meet the definition of an SEC filer, excluding entities eligible to be small reporting companies as defined by the SEC, by one year. In November 2020, the FASB issued an amendment providing an additional year deferral for all insurance entities due to the impact of COVID-19. The amendments are now effective for the Company for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. Early application of the amendments is permitted. The Company continues to evaluate the impact of adoption and expects that the adoption will have a significant impact on the Company’s financial position, results of operations, and disclosures. The Company anticipates that the requirement to update assumptions for liability for future policy benefits (LFPB) will have a significant impact on its results of operations, systems, processes and controls and that the requirement to update discount rates will have a significant impact on its equity. As part of working toward implementation of the updated standard, the Company has made progress on key accounting policy decisions, including processes to identify insurance policy groupings (cohorts) for LFPB measurement and DAC amortization purposes, applicable discount rates, development of liability cash flow and claim expense assumptions, and DAC amortization methodology. The Company will not early adopt the updated standard and has selected the modified retrospective transition method. Based upon this transition method, the Company currently estimates that the January 1, 2021 transition date (Transition Date) impact from adoption is likely to result in a decrease in accumulated other comprehensive income (AOCI) in a range between $18 billion and $20 billion. This is due to updating the LFPB discount rate assumptions from the rates locked in for reserves held as of the Transition Date to rates determined by reference to the Transition Date market level yields for upper-medium-grade (low credit risk) fixed income instruments (as of December 31, 2020). The variability around the impact of adoption results from the Company making certain estimates, primarily related to the determination of Transition Date market level yields. The Company has advanced and continues to refine the design of its discount rate methodology for both the U.S. and Japan insurance business. The methodology incorporates constructing a discount rate curve separately for discounting cash flows used to calculate the U.S. and Japan LFPB, with each curve intended to be reflective of the currency, tenor and characteristics of the insurance liabilities. Discount rates comprising each curve will be determined by reference to upper-medium grade (low credit risk) fixed-income instrument yields that are intended to reflect the duration characteristics of the corresponding insurance liabilities. The Company intends to use for these yields single-A rated fixed income instruments with credit ratings based on international rating standards. Where only local ratings are available, the Company intends to select the fixed-income instruments with local ratings that are equivalent to a single-A rating based on international rating standards. The methodology will be designed to prioritize observable inputs based on market data available in the local debt markets where the respective policies were issued in the currency in which the policies are denominated. For the discount rates applicable to tenors for which the single-A debt market is not liquid or there is little or no observable market data, the Company will use various estimation techniques consistent with the fair value guidance in ASC 820, which include, but are not limited to: (i) for tenors where there is less observable market data and/or the observable market data is available for similar instruments, estimating tenor-specific single-A credit spreads and applying them to risk-free government rates; (ii) for tenors where there is very limited or no observable single-A or similar market data, interpolation and extrapolation techniques. Discount rates will be updated each reporting period. Long duration insurance contracts issued by the Company will be grouped into annual calendar-year cohorts based on the contract issue date, reportable segment, legal entity and product type. Limited pay contracts will be grouped into separate cohorts from other traditional products in the same manner and will be further separated based on their premium payment structures. Riders will be combined with base policies with similar insurance coverage types and the same contract issue years. In addition to the preliminary policy elections related to cohorts and LFPB discount rates directly impacting Transition Date AOCI, the Company has also advanced the following accounting policies relevant to the post-Transition Date accounting: • Cash flow assumptions underlying insurance liabilities will be evaluated as to whether an update is needed at least annually in the same fiscal quarter each year. To facilitate the review, experience studies will be performed annually in the consistent quarter year-to-year to substantiate assumptions, including mortality, morbidity, and terminations in future periods. • Locked-in discount rates used for the computation of interest accretion on LFPB for policies issued on or after January 1, 2021 will be determined for each issue-year cohort as a single discount rate, calculated as the weighted-average of monthly upper-medium grade (low-credit risk) fixed-income instrument forward curves over the calendar year, determined using the methodology described above and weighted using issued annualized premiums for each issue month. The single discount rate for each issue-year cohort will remain unchanged after the calendar year of issue. Locked-in discount rates on the policies held at Transition Date reflect the locked-in rates in existence immediately before the Transition Date. • For DAC amortization, the Company has made a preliminary election to group insurance policies into cohorts that are consistent with the groupings used in estimating the associated LFPB. DAC will be amortized on a constant-level basis for the grouped contracts over the expected remaining term of the related contracts. For both life and health products issued by Aflac Japan, the constant-level basis used will be units in force, which is a proxy for face amount and insurance in force, respectively. For life products issued by Aflac U.S., the constant level basis used will be face amount of policies in force; for health products issued by Aflac U.S., the constant level basis used will be the number of policies in force. • The Company has made a preliminary entity-wide election to use locked-in claim expense assumptions determined for each issue-year cohort as a percentage of incurred claims; these assumptions would remain unchanged over the term of the insurance policy. The Company has created a governance framework and a plan to support implementation of the updated standard. As part of its implementation plan, the Company has also advanced the modernization of its actuarial technology platform to enhance its modeling, data management, experience study and analytical capabilities, increase the end-to-end automation of key reporting and analytical processes and optimize its control framework. The Company has also put in place internal controls related to the new processes created as part of implementing the updated standard and will continue to refine and maturate these internal controls until the formal implementation in the first quarter of 2023. The Company has recently begun testing its reporting and disclosure capabilities under the new ASU for post-Transition Date accounting periods. The Company currently has no products with market risk benefits. Recent accounting guidance not discussed above is not applicable, did not have, or is not expected to have a material impact to the Company's business. For additional information on new accounting pronouncements and recent accounting guidance and their impact, if any, on the Company's financial position, results of operations or disclosures, see Note 1 of the Notes to the Consolidated Financial Statements in the 2020 Annual Report. |
BUSINESS SEGMENT INFORMATION
BUSINESS SEGMENT INFORMATION | 3 Months Ended |
Sep. 30, 2021 | |
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. In addition, the Parent Company, other operating business units that are not individually reportable, and business activities, including reinsurance retrocession activities, not included in Aflac Japan or Aflac U.S. are included in Corporate and other. The Company does not allocate corporate overhead expenses to business segments. Consistent with U.S. GAAP accounting guidance for segment reporting, the Company evaluates and manages its business segments using a financial performance measure called pretax adjusted earnings. Adjusted earnings are adjusted revenues less benefits and adjusted expenses. The adjustments to both revenues and expenses account for certain items that cannot be predicted or that are outside management’s control. Adjusted revenues are U.S. GAAP total revenues excluding net investment gains and losses, except for amortized hedge costs/income related to foreign currency exposure management strategies and net interest cash flows from derivatives associated with certain investment strategies. Adjusted expenses are U.S. GAAP total acquisition and operating expenses including the impact of interest cash flows from derivatives associated with notes payable but excluding any nonrecurring or other items not associated with the normal course of the Company’s insurance operations and that do not reflect Aflac’s underlying business performance. The Company excludes income taxes related to operations to arrive at pretax adjusted earnings. Information regarding operations by reportable segment and Corporate and other, follows: Three Months Ended Nine Months Ended (In millions) 2021 2020 2021 2020 Revenues: Aflac Japan: Net earned premiums $ 2,934 $ 3,168 $ 9,045 $ 9,476 Adjusted net investment income (1),(2) 763 663 2,260 1,939 Other income 10 11 32 32 Total adjusted revenue Aflac Japan 3,707 3,842 11,337 11,447 Aflac U.S.: Net earned premiums 1,393 1,407 4,223 4,348 Adjusted net investment income (3) 191 175 557 523 Other income 32 24 90 78 Total adjusted revenue Aflac U.S. 1,616 1,606 4,870 4,949 Corporate and other (4),(5) 72 87 205 292 Total adjusted revenues 5,395 5,535 16,412 16,688 Net investment gains (losses) (1),(2),(3),(4) (158) 130 258 (454) Total revenues $ 5,237 $ 5,665 $ 16,670 $ 16,234 (1) Amortized hedge costs of $20 and $51 for the three-month periods and $55 and $155 for the nine-month periods ended September 30, 2021, and 2020, respectively, related to certain foreign currency exposure management strategies have been reclassified from net investment gains (losses) and reported as a deduction from net investment income when analyzing operations. (2) Net interest cash flows from derivatives associated with certain investment strategies of $(7) and $6 for the three-month periods and $(24) and $5 for the nine-month periods ended September 30, 2021 and 2020, respectively, have been reclassified from net investment gains (losses) and included in adjusted earnings as a component of net investment income when analyzing operations. (3) Net interest cash flows from derivatives associated with certain investment strategies of $1 for both three-month periods and $1 and $2 for the nine-month periods ended September 30, 2021 and 2020, respectively, have been reclassified from net investment gains (losses) and included in adjusted earnings as a component of net investment income. (4) Amortized hedge income of $13 and $22 for the three-month periods and $45 and $78 for the nine-month periods ended September 30, 2021, and 2020, respectively, related to certain foreign currency exposure management strategies has been reclassified from net investment gains (losses) and reported as an increase to net investment income when analyzing operations. (5) The change in value of federal historic rehabilitation and solar investments in partnerships of $5 and $35 for the three- and nine-month periods ended September 30, 2021, respectively, are included as a reduction to net investment income. Offsetting tax credits on these investments of $10 and $35 for the three- and nine-month periods ended September 30, 2021, respectively, have been recorded as an income tax benefit in the consolidated statement of earnings. See Note 3 of the Notes to the Consolidated Financial Statements for additional information on these investments. Three Months Ended Nine Months Ended (In millions) 2021 2020 2021 2020 Pretax earnings: Aflac Japan (1),(2) $ 976 $ 747 $ 2,867 $ 2,442 Aflac U.S. (3) 358 329 1,217 1,082 Corporate and other (4),(5),(6) (41) (39) (144) (69) Pretax adjusted earnings (7) 1,293 1,037 3,940 3,455 Net investment gains (losses) (1),(2),(3),(4),(5) (172) 117 216 (497) Other income (loss) (8) (1) (66) (16) Total earnings before income taxes $ 1,113 $ 1,153 $ 4,090 $ 2,942 Income taxes applicable to pretax adjusted earnings $ 262 $ 43 $ 771 $ 659 Effect of foreign currency translation on after-tax (14) 3 (8) 17 (1) Amortized hedge costs of $20 and $51 for the three-month periods and $55 and $155 for the nine-month periods ended September 30, 2021, and 2020, respectively, related to certain foreign currency exposure management strategies have been reclassified from net investment gains (losses) and reported as a deduction from net investment income when analyzing operations. (2) Net interest cash flows from derivatives associated with certain investment strategies of $(7) and $6 for the three-month periods and $(24) and $5 for the nine-month periods ended September 30, 2021 and 2020, respectively, have been reclassified from net investment gains (losses) and included in adjusted earnings as a component of net investment income when analyzing operations. (3) Net interest cash flows from derivatives associated with certain investment strategies of $1 for both three-month periods and $1 and $2 for the nine-month periods ended September 30, 2021 and 2020, respectively, have been reclassified from net investment gains (losses) and included in adjusted earnings as a component of net investment income. (4) Amortized hedge income of $13 and $22 for the three-month periods and $45 and $78 for the nine-month periods ended September 30, 2021, and 2020, respectively, related to certain foreign currency exposure management strategies has been reclassified from net investment gains (losses) and reported as an increase in net investment income when analyzing operations. (5) A gain of $14 and $13 for the three-month periods and $41 and $43 for the nine-month periods ended September 30, 2021, and 2020, respectively, related to the interest rate component of the change in fair value of foreign currency swaps on notes payable has been reclassified from net investment gains (losses) and included in adjusted earnings when analyzing operations. (6) The change in value of federal historic rehabilitation and solar investments in partnerships of $5 and $35 for the three- and nine-month periods ended September 30, 2021, respectively, is included as a reduction to net investment income. Offsetting tax credits on these investments of $10 and $35 for the three- and nine-month periods ended September 30, 2021, respectively, have been recorded as an income tax benefit in the consolidated statement of earnings. See Note 3 of the Notes to the Consolidated Financial Statements for additional information on these investments. (7) Includes $40 and $44 for the three-month periods and $130 and $122 for the nine-month periods ended September 30, 2021, and 2020, respectively, of interest expense on debt. Assets were as follows: (In millions) September 30, December 31, Assets: Aflac Japan $ 131,651 $ 137,271 Aflac U.S. 23,304 22,864 Corporate and other 5,642 4,951 Total assets $ 160,597 $ 165,086 |
INVESTMENTS
INVESTMENTS | 9 Months Ended |
Sep. 30, 2021 | |
Investments [Abstract] | |
INVESTMENTS | INVESTMENTS Investment Holdings The amortized cost for the Company's investments in fixed maturity securities, the cost for equity securities and the fair values of these investments are shown in the following tables. September 30, 2021 (In millions) Amortized Allowance for Credit Losses Gross Gross Fair Securities available for sale, carried at fair Fixed maturity securities: Yen-denominated: Japan government and agencies $ 31,549 $ 0 $ 3,574 $ 62 $ 35,061 Municipalities 1,224 0 323 5 1,542 Mortgage- and asset-backed securities 310 0 21 1 330 Public utilities 4,584 0 930 2 5,512 Sovereign and supranational 781 0 81 0 862 Banks/financial institutions 7,149 0 834 66 7,917 Other corporate 7,377 0 1,575 22 8,930 Total yen-denominated 52,974 0 7,338 158 60,154 U.S. dollar-denominated: U.S. government and agencies 155 0 10 0 165 Municipalities 1,217 0 179 1 1,395 Mortgage- and asset-backed securities 932 0 30 0 962 Public utilities 3,887 0 920 4 4,803 Sovereign and supranational 225 0 59 4 280 Banks/financial institutions 3,081 0 745 1 3,825 Other corporate 24,757 0 4,448 67 29,138 Total U.S. dollar-denominated 34,254 0 6,391 77 40,568 Total securities available for sale $ 87,228 $ 0 $ 13,729 $ 235 $ 100,722 December 31, 2020 (In millions) Amortized Allowance for Credit Losses Gross Gross Fair Securities available for sale, carried at fair Fixed maturity securities: Yen-denominated: Japan government and agencies $ 32,959 $ 0 $ 4,182 $ 52 $ 37,089 Municipalities 1,324 0 374 5 1,693 Mortgage- and asset-backed securities 342 0 27 1 368 Public utilities 4,777 0 1,096 1 5,872 Sovereign and supranational 981 0 108 0 1,089 Banks/financial institutions 7,552 0 886 102 8,336 Other corporate 8,114 0 1,747 37 9,824 Total yen-denominated 56,049 0 8,420 198 64,271 U.S. dollar-denominated: U.S. government and agencies 245 0 16 0 261 Municipalities 1,154 0 173 2 1,325 Mortgage- and asset-backed securities 667 0 8 5 670 Public utilities 4,013 0 947 15 4,945 Sovereign and supranational 232 0 64 3 293 Banks/financial institutions 2,973 0 758 7 3,724 Other corporate 26,297 38 4,385 251 30,393 Total U.S. dollar-denominated 35,581 38 6,351 283 41,611 Total securities available for sale $ 91,630 $ 38 $ 14,771 $ 481 $ 105,882 September 30, 2021 (In millions) Amortized Allowance for Credit Losses Net Carrying Amount Gross Gross Fair Securities held to maturity, carried at Fixed maturity securities: Yen-denominated: Japan government and agencies $ 21,676 $ 3 $ 21,673 $ 4,868 $ 0 $ 26,541 Municipalities 346 0 346 107 0 453 Public utilities 45 1 44 13 0 57 Sovereign and supranational 533 5 528 139 0 667 Other corporate 22 0 22 8 0 30 Total yen-denominated 22,622 9 22,613 5,135 0 27,748 Total securities held to maturity $ 22,622 $ 9 $ 22,613 $ 5,135 $ 0 $ 27,748 December 31, 2020 (In millions) Amortized Allowance for Credit Losses Net Carrying Amount Gross Gross Fair Securities held to maturity, carried at Fixed maturity securities: Yen-denominated: Japan government and agencies $ 23,448 $ 3 $ 23,445 $ 5,625 $ 0 $ 29,070 Municipalities 377 0 377 122 0 499 Public utilities 48 1 47 14 0 61 Sovereign and supranational 577 6 571 165 0 736 Other corporate 24 0 24 9 0 33 Total yen-denominated 24,474 10 24,464 5,935 0 30,399 Total securities held to maturity $ 24,474 $ 10 $ 24,464 $ 5,935 $ 0 $ 30,399 (In millions) September 30, 2021 December 31, 2020 Equity securities, carried at fair value through net earnings: Fair Value Fair Value Equity securities: Yen-denominated $ 753 $ 680 U.S. dollar-denominated 667 603 Other currencies 41 0 Total equity securities $ 1,461 $ 1,283 The methods of determining the fair values of the Company's investments in fixed maturity securities and equity securities are described in Note 5. During the first nine months of 2021, the Company did not reclassify any investments from the held-to-maturity category to the available-for-sale category. During the second and third quarter of 2020, the Company did not reclassify any investments from the held-to-maturity category to the available-for-sale category. During the first quarter of 2020, as a result of the adoption of ASU 2019-04, the Company reclassified $6.9 billion (at amortized cost) of pre-payable fixed-maturity securities from the held-to-maturity category to the available-for-sale category. This reclassification resulted in recording in accumulated other comprehensive income a net unrealized gain of $848 million on an after-tax basis . Contractual and Economic Maturities The contractual and economic maturities of the Company's investments in fixed maturity securities at September 30, 2021, were as follows: (In millions) Amortized (1) Fair Available for sale: Due in one year or less $ 914 $ 930 Due after one year through five years 8,302 8,909 Due after five years through 10 years 13,291 15,565 Due after 10 years 63,479 74,026 Mortgage- and asset-backed securities 1,242 1,292 Total fixed maturity securities available for sale $ 87,228 $ 100,722 Held to maturity: Due in one year or less $ 0 $ 0 Due after one year through five years 45 49 Due after five years through 10 years 8,753 10,207 Due after 10 years 13,815 17,492 Mortgage- and asset-backed securities 0 0 Total fixed maturity securities held to maturity $ 22,613 $ 27,748 (1) Net of allowance for credit losses Economic maturities are used for certain debt instruments with no stated maturity where the expected maturity date is based on the combination of features in the financial instrument such as the right to call or prepay obligations or changes in coupon rates. Investment Concentrations The Company's process for investing in credit-related investments begins with an independent approach to underwriting each issuer's fundamental credit quality. The Company evaluates independently those factors that it believes could influence an issuer's ability to make payments under the contractual terms of the Company's 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). The Company further evaluates 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: September 30, 2021 December 31, 2020 (In millions) Credit Amortized Fair Credit Amortized Fair Japan National Government (1) A+ $51,953 $60,106 A+ $55,153 $64,657 (1) Japan Government Bonds (JGBs) or JGB-backed securities Net Investment Gains and Losses Information regarding pretax net gains and losses from investments is as follows: Three Months Ended Nine Months Ended (In millions) 2021 2020 2021 2020 Net investment gains (losses): Sales and redemptions: Fixed maturity securities available for sale: Gross gains from sales $ 24 $ 7 $ 40 $ 28 Gross losses from sales (36) 0 (39) (46) Foreign currency gains (losses) on sales and redemptions (2) (5) (21) (39) Total sales and redemptions (14) 2 (20) (57) Equity securities (119) 12 (17) (106) Credit losses: Fixed maturity securities available for sale 27 0 38 (75) Fixed maturity securities held to maturity 0 0 1 1 Commercial mortgage and other loans (29) 78 15 (86) Impairment losses 0 0 (20) 0 Loan commitments 3 64 3 (17) Reinsurance recoverables and other 0 0 (2) (2) Total credit losses 1 142 35 (179) Derivatives and other: Derivative gains (losses) (174) 138 (557) 173 Foreign currency gains (losses) 135 (186) 783 (356) Total derivatives and other (39) (48) 226 (183) Total net investment gains (losses) $ (171) $ 108 $ 224 $ (525) The unrealized holding gains, net of losses, recorded as a component of net investment gains and losses for the three-month period ended September 30, 2021, that relate to equity securities still held at the September 30, 2021 reporting date, were $170 million. The unrealized holding losses, net of gains, recorded as a component of net investment gains and losses for the nine-month period ended September 30, 2021, that relate to equity securities still held at the September 30, 2021 reporting date, were $33 million. Unrealized Investment Gains and Losses Effect on Shareholders’ Equity The net effect on shareholders’ equity of unrealized gains and losses from fixed maturity securities was as follows: (In millions) September 30, 2021 December 31, Unrealized gains (losses) on securities available for sale $ 13,494 $ 14,290 Deferred income taxes (3,763) (3,929) Shareholders’ equity, unrealized gains (losses) on fixed maturity securities $ 9,731 $ 10,361 Gross Unrealized Loss Aging The following tables show the fair values and gross unrealized losses of the Company's available-for-sale investments for the periods ended September 30, 2021 and December 31, 2020, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position. September 30, 2021 Total Less than 12 months 12 months or longer (In millions) Fair Unrealized Fair Unrealized Fair Unrealized Fixed maturity securities available Japan government and Yen-denominated $ 2,980 $ 62 $ 342 $ 2 $ 2,638 $ 60 Municipalities: U.S. dollar-denominated 56 1 56 1 0 0 Yen-denominated 168 5 30 0 138 5 Mortgage- and asset- Yen-denominated 34 1 0 0 34 1 Public utilities: U.S. dollar-denominated 195 4 108 2 87 2 Yen-denominated 242 2 182 1 60 1 Sovereign and supranational: U.S. dollar-denominated 6 4 6 1 0 3 Banks/financial institutions: U.S. dollar-denominated 152 1 146 1 6 0 Yen-denominated 1,824 66 735 5 1,089 61 Other corporate: U.S. dollar-denominated 1,731 67 898 17 833 50 Yen-denominated 558 22 106 1 452 21 Total $ 7,946 $ 235 $ 2,609 $ 31 $ 5,337 $ 204 December 31, 2020 Total Less than 12 months 12 months or longer (In millions) Fair Unrealized Fair Unrealized Fair Unrealized Fixed maturity securities available Japan government and Yen-denominated $ 2,604 $ 52 $ 2,604 $ 52 $ 0 $ 0 Municipalities: U.S. dollar-denominated 94 2 94 2 0 0 Yen-denominated 183 5 169 4 14 1 Mortgage- and asset- U.S. dollar-denominated 360 5 360 5 0 0 Yen-denominated 37 1 37 1 0 0 Public utilities: U.S. dollar-denominated 326 15 208 7 118 8 Yen-denominated 135 1 135 1 0 0 Sovereign and supranational: U.S. dollar-denominated 39 3 39 3 0 0 Banks/financial institutions: U.S. dollar-denominated 82 7 44 1 38 6 Yen-denominated 1,809 102 765 36 1,044 66 Other corporate: U.S. dollar-denominated 4,499 251 2,157 59 2,342 192 Yen-denominated 613 37 290 13 323 24 Total $ 10,781 $ 481 $ 6,902 $ 184 $ 3,879 $ 297 Analysis of Securities in Unrealized Loss Positions The unrealized losses on the Company's fixed maturity 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. For any significant declines in fair value of its fixed maturity securities, the Company performs a more focused review of the related issuers' credit profile. For corporate issuers, the Company evaluates their assets, business profile including industry dynamics and competitive positioning, financial statements and other available financial data. For non-corporate issuers, the Company analyzes all sources of credit support, including issuer-specific factors. The Company utilizes information available in the public domain and, for certain private placement issuers, from consultations with the issuers directly. The Company also considers ratings from Nationally Recognized Statistical Rating Organizations (NRSROs), as well as the specific characteristics of the security it owns including seniority in the issuer's capital structure, covenant protections, or other relevant features. From these reviews, the Company evaluates the issuers' continued ability to service the Company's investment through payment of interest and principal. Assuming no credit-related factors develop, unrealized gains and losses on fixed maturity securities are expected to diminish as investments near maturity. Based on its credit analysis, the Company believes that the issuers of its fixed maturity investments in the sectors shown in the table above have the ability to service their obligations to the Company, and the Company does not intend to sell the investments and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost bases, which may be at maturity. However, from time to time the Company identifies certain available-for-sale fixed maturity securities where the amortized cost basis exceeds the present value of the cash flows expected to be collected due to credit related factors and as a result, a credit allowance will be calculated. Refer to the Allowance for Credit Losses section below for additional information. Commercial Mortgage and Other Loans The Company classifies its transitional real estate loans (TREs), commercial mortgage loans (CMLs) and middle market loans (MMLs) as held-for-investment and includes them in the commercial mortgage and other loans line on the consolidated balance sheets. The Company carries them on the balance sheet at amortized cost less an estimated allowance for credit losses. The following table reflects the composition of the carrying value for commercial mortgage and other loans by property type as of the periods presented. (In millions) September 30, 2021 December 31, 2020 Amortized Cost % of Total Amortized Cost % of Total Commercial Mortgage and other loans: Transitional real estate loans: Office $ 1,944 16.8 % $ 2,115 19.7 % Retail 140 1.2 125 1.2 Apartments/Multi-Family 1,666 14.4 1,782 16.6 Industrial 46 0.4 85 .8 Hospitality 1,075 9.3 1,106 10.3 Other 340 3.0 81 .7 Total transitional real estate loans 5,211 45.1 5,294 49.3 Commercial mortgage loans: Office 395 3.4 401 3.7 Retail 334 3.0 340 3.2 Apartments/Multi-Family 640 5.5 588 5.5 Industrial 478 4.1 391 3.6 Other 14 0.1 0 0.0 Total commercial mortgage loans 1,861 16.1 1,720 16.0 Middle market loans 4,481 38.8 3,720 34.7 Total commercial mortgage and other loans $ 11,553 100.0 % $ 10,734 100.0 % Allowance for credit losses (165) (180) Total net commercial mortgage and other loans $ 11,388 $ 10,554 CMLs and TREs were secured by properties entirely within the U.S. (with the largest concentrations in California (18%), Texas (13%) and Florida (9%)). Middle market loans are issued only to companies domiciled within the U.S. and Canada. Transitional Real Estate Loans TREs are commercial mortgage loans that are typically relatively short-term floating rate instruments secured by a first lien on the property. These loans provide funding for properties undergoing a change in their physical characteristics and/or economic profile and do not typically require any principal repayment prior to the maturity date. This loan portfolio is generally considered to be investment grade. As of September 30, 2021, the Company had $645 million in outstanding commitments to fund TREs. These commitments are contingent on the final underwriting and due diligence to be performed. Commercial Mortgage Loans CMLs are typically fixed rate loans on commercial real estate with partial repayment of principal over the life of the loan with the remaining outstanding principal being repaid upon maturity. This loan portfolio is generally considered higher quality investment grade loans. As of September 30, 2021, the Company had no outstanding commitments to fund CMLs. These commitments are contingent on the final underwriting and due diligence to be performed. Middle Market Loans MMLs are typically first lien senior secured cash flow loans to small to mid-size companies for working capital, refinancing, acquisition, and recapitalization. These loans are generally considered to be below investment grade. The carrying value for MMLs included $25 million for a short term credit facility that is reflected in other liabilities on the consolidated balance sheets, as of September 30, 2021, and December 31, 2020. As of September 30, 2021, the Company had commitments of approximately $1.7 billion to fund future MMLs. These commitments are contingent upon the availability of middle market loans that meet the Company's underwriting criteria. Credit Quality Indicators For TREs, the Company’s key credit quality indicator is loan-to-value (LTV). Given that TRE loans involve properties undergoing renovation or construction, LTV provides the most insight into the credit risk of the loan. The Company monitors the performance of the loans periodically, but not less frequently than quarterly. For CMLs, the Company’s key credit quality indicators include LTV and debt service coverage ratios (DSCR). LTV is calculated by dividing the current outstanding loan balance by the most recent estimated property value. DSCR is the most recently available operating income of the underlying property compared to the required debt service of the loan. For MMLs and held-to-maturity fixed maturity securities, the Company’s key credit quality indicator is credit ratings. The Company’s held-to-maturity portfolio is composed of investment grade securities that are senior unsecured instruments, while its MMLs generally have below-investment-grade ratings but are typically senior secured instruments. The Company monitors the credit ratings periodically, but not less frequently than quarterly. For the Company’s reinsurance recoverable balance, the key credit quality indicator is the credit rating of the Company’s reinsurance counterparty. The Company uses external credit ratings focused on the reinsurer’s financial strength and credit worthiness. The Company's reinsurance counterparties are rated A+. The Company monitors the credit ratings periodically, but not less frequently than quarterly. The following tables present as of September 30, 2021 the amortized cost basis of TREs, CMLs and MMLs by year of origination and credit quality indicator . Transitional Real Estate Loans (In millions) 2021 2020 2019 2018 2017 Total Loan-to-Value Ratio: 0%-59.99% $ 449 $ 55 $ 439 $ 353 $ 77 $ 1,373 60%-69.99% 417 136 831 543 182 2,109 70%-79.99% 569 184 443 323 182 1,701 80% or greater 0 28 0 0 0 28 Total $ 1,435 $ 403 $ 1,713 $ 1,219 $ 441 $ 5,211 Commercial Mortgage Loans (In millions) 2021 2020 2019 2018 2017 Prior Total Weighted-Average DSCR Loan-to-Value Ratio: 0%-59.99% $ 174 $ 47 $ 559 $ 168 $ 68 $ 561 $ 1,577 2.51 60%-69.99% 34 0 87 0 0 138 259 1.97 70%-79.99% 0 0 0 0 0 25 25 1.67 Total 208 47 646 168 68 724 1,861 2.42 Weighted Average DSCR 2.49 1.94 2.55 2.32 2.78 2.30 Middle Market Loans (In millions) 2021 2020 2019 2018 2017 Prior Revolving Loans Total Credit Ratings: BBB $ 54 $ 78 $ 51 $ 39 $ 10 $ 3 $ 68 $ 303 BB 346 347 283 163 106 27 221 1,493 B 357 493 635 323 154 121 170 2,253 CCC 0 19 64 81 79 49 87 379 CC 0 0 0 14 26 0 5 45 C and lower 0 8 0 0 0 0 0 8 Total $ 757 $ 945 $ 1,033 $ 620 $ 375 $ 200 $ 551 $ 4,481 Allowance for Credit Losses The Company calculates its allowance for credit losses for held-to-maturity fixed maturity securities, loan receivables, loan commitments and reinsurance recoverable by grouping assets with similar risk characteristics when there is not a specific expectation of a loss for an individual asset. For held-to-maturity fixed maturity securities, MMLs, and MML commitments, the Company groups assets by credit ratings, industry, and country. The Company groups CMLs and TREs and respective loan commitments by property type, property location and the property’s LTV and debt service coverage ratios. The credit allowance for the reinsurance recoverable balance is estimated using a probability-of-default (PD) / loss-given-default (LGD) method. The credit allowance for held-to-maturity fixed maturity securities and loan receivables is estimated using a PD / LGD method, discounted for the time value of money. For held-to-maturity fixed maturity securities, available-for-sale fixed maturity securities and loan receivables, the Company includes the change in present value due to the passage of time in the change in the allowance for credit losses. The Company’s methodology for estimating credit losses utilizes the contractual maturity date of the financial asset, adjusted when necessary to reflect the expected timing of repayment (such as prepayment options, renewal options, call options, or extension options). The Company applies reasonable and supportable forecasts of macroeconomic variables that impact the determination of PD/LGD over a two-year period for held-to-maturity fixed maturity securities and MMLs. The Company reverts to historical loss information over one year, following the two-year forecast period. For the CML and TRE portfolio, the Company applies reasonable and supportable forecasts of macroeconomic variables as well as national and local real-estate market factors to estimate future credit losses where the market factors revert back to historical levels over time with the period being dependent on current market conditions, projected market conditions and difference in the current and historical market levels for each factor. The Company continuously monitors the estimation methodology, due to changes in portfolio composition, changes in underwriting practices and significant events or conditions and makes adjustments as necessary. The Company’s held-to-maturity fixed maturity portfolio includes Japan Government and Agency securities of $21.5 billion amortized cost as of September 30, 2021 that meet the requirements for zero-credit-loss expectation and therefore these asset classes have been excluded from the current expected credit loss measurement. An investment in an available-for-sale fixed maturity security is impaired if the fair value falls below amortized cost. The Company regularly reviews its fixed maturity security investments portfolio for declines in fair value. The Company's debt impairment model focuses on the ultimate collection of the cash flows from its investments and whether the Company has the intent to sell or if it is more likely than not the Company would be required to sell the security prior to recovery of its amortized cost. The determination of the amount of impairments under this model is based upon the Company's periodic evaluation and assessment of known and inherent risks associated with the respective securities. Such evaluations and assessments are revised as conditions change and new information becomes available. When determining the Company's intention to sell a security prior to recovery of its fair value to amortized cost, the Company evaluates facts and circumstances such as, but not limited to, future cash flow needs, decisions to reposition its security portfolio, and risk profile of individual investment holdings. The Company performs ongoing analyses of its liquidity needs, which includes cash flow testing of its policy liabilities, debt maturities, projected dividend payments, and other cash flow and liquidity needs. The Company’s methodology for estimating credit losses for available-for-sale fixed maturity securities utilizes the discounted cash flow model, based on past events, current market conditions and future economic conditions, as well as industry analysis and credit ratings of the fixed maturity securities. In addition, the Company evaluates the specific issuer’s probability of default and expected recovery of its position in the event of default based on the underlying financial condition and assets of the borrower as well as seniority and/or security of other debt holders in the issuer when developing management’s best estimate of expected cash flows. The Company granted certain loan modifications in its MML and TRE portfolios during the period ended September 30, 2021. As of September 30, 2021, these loan modifications did not have a material impact on the Company’s results of operations. The Company had no troubled debt restructurings (TDRs) during the period ended September 30, 2021 and an immaterial amount due to COVID-19 during the year ended December 31, 2020. The Company designates nonaccrual status for a nonperforming debt security or a loan that is not generating its stated interest rate because of nonpayment of periodic interest by the borrower. The Company applies the cash basis method to record any payments received on non-accrual assets. The Company resumes the accrual of interest on fixed maturity securities and loans that are currently making contractual payments or for those that are not current where the borrower has paid timely (less than 30 days outstanding). As of September 30, 2021 and December 31, 2020, the Company had an immaterial amount of loans or fixed maturities on nonaccrual status. The following table presents the roll forward of the allowance for credit losses by portfolio segment. (in millions) Transitional Real Estate Loans Commercial Mortgage Loans Middle Market Loans Held to Maturity Securities Available for Sale Securities Reinsurance Recoverables Three Months Ended September 30, 2021: Balance at June 30, 2021 $ (41) $ (22) $ (76) $ (8) $ (26) $ (13) (Addition to) release of allowance for credit (18) 5 (13) (1) 0 0 Write-offs, net of recoveries 0 0 0 0 26 0 Balance at September 30, 2021 $ (59) $ (17) $ (89) $ (9) $ 0 $ (13) Three Months Ended September 30, 2020: Balance at June 30, 2020 $ (66) $ (42) $ (134) $ (9) $ (38) $ (11) (Addition to) release of allowance for credit 13 14 59 0 (1) 0 Write-offs, net of recoveries 0 0 (9) 0 1 0 Balance at September 30, 2020 $ (53) $ (28) $ (84) $ (9) $ (38) $ (11) Nine Months Ended September 30, 2021: Balance at December 31, 2020 $ (63) $ (32) $ (85) $ (10) $ (38) $ (12) (Addition to) release of allowance for credit 4 15 (4) 1 26 (1) Write-offs, net of recoveries 0 0 0 0 12 0 Balance at September 30, 2021 $ (59) $ (17) $ (89) $ (9) $ 0 $ (13) Nine Months Ended September 30, 2020: Balance at December 31, 2019 (1) $ (22) $ (3) $ (20) $ 0 $ 0 $ 0 Transition impact to retained earnings (2) (8) (33) (10) 0 (11) (Addition to) release of allowance for credit (29) (17) (31) 1 (75) 0 Write-offs, net of recoveries 0 0 0 0 37 0 Balance at September 30, 2020 $ (53) $ (28) $ (84) $ (9) $ (38) $ (11) (1) U.S. GAAP guidance adopted as of January 1, 2020 has superseded these losses, included for comparative purposes only. For assets that are subject to the credit loss measurement, the change in credit loss allowance will be significantly impacted by purchases and sales in those assets during the period as well as entering into new non-cancelable loan commitments. The estimate of credit losses for loan commitments as of September 30, 2021 was $32 million. Other Investments The table below reflects the composition of the carrying value for other investments as of the periods presented. (In millions) September 30, 2021 December 31, 2020 Other investments: Policy loans $ 241 $ 260 Short-term investments (1) 1,833 1,139 Limited partnerships 1,519 1,004 Other 19 26 Total other investments $ 3,612 $ 2,429 (1) Includes securities lending collateral The Parent Company invests in partnerships that specialize in rehabilitating historic structures or the installation of solar equipment in order to receive federal historic rehabilitation and solar tax credits. These investments are classified as limited partnerships and included in other investments in the consolidated balance sheet. The change in value of each investment is recorded as a reduction to net investment income. Offsetting tax credits generated by these investments are recorded as an income tax benefit in the consolidated statement of earnings. As of September 30, 2021, the Company had $1.9 billion in outstanding commitments to fund alternative investments in limited partnerships. Variable Interest Entities (VIEs) As a condition of its involvement or investment in a VIE, the Company enters into certain protective rights and covenants that preclude changes in the structure of the VIE that would alter the creditworthiness of the Company's investment or its beneficial interest in the VIE. For those VIEs other than certain unit trust structures, the Company's involvement is passive in nature. The Company has not, nor has it been, required to purchase any securities issued in the future by these VIEs. The Company's ownership interest in VIEs is limited to holding the obligations issued by them. The Company has no direct or contingent obligations to fund the limited activities of these VIEs, nor does it have any direct or indirect financial guarantees related to the limited activities of these VIEs. The Company has not provided any assistance or any other type of financing support to any of the VIEs it invests in, nor does it have any intention to do so in the future. For those VIEs in which the Company holds debt obligations, the weighted-average lives of the Company's notes are very similar to the underlying collateral held by these VIEs where applicable. The Company's risk of loss related to its interests in any of its 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 September 30, 2021 December 31, 2020 (In millions) Amortized (1) Fair Amortized Cost (1) Fair Assets: Fixed maturity securities, available for sale $ 3,228 $ 4,437 $ 3,487 $ 4,596 Commercial mortgage and other loans 9,543 9,723 8,964 9,040 Other investments (2) 1,272 1,272 826 826 Other assets (3) 99 99 133 133 Total assets of consolidated VIEs $ 14,142 $ 15,531 $ 13,410 $ 14,595 Liabilities: Other liabilities (3) $ 356 $ 356 $ 231 $ 231 Total liabilities of consolidated VIEs $ 356 $ 356 $ 231 $ 231 (1) Net of allowance for credit losses (2) Consists entirely of alternative investments in limited partnerships (3) Consists entirely of derivatives The Company is substantively the only investor in the consolidated VIEs listed in the table above. As the sole investor in these VIEs, the Company has the power to direct the activities of a variable interest entity that most significantly impact the entity's economic performance and is therefore considered to be the primary beneficiary of the VIEs that it consolidates. The Company also participates in substantially all of the variability created by these VIEs. The activities of these VIEs are limited to holding invested assets and foreign currency swaps, as appropriate, and utilizing the cash flows from these securities to service its investment. Neither the Company nor any of its 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, the Company is not a direct counterparty to the swap contracts and has no control over them. The Company's loss exposure to these VIEs is limited to its original investment. The Company's 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 its investment in unit trust structures, the underlying collateral assets and funding of the Company's consolidated VIEs are generally static in nature. Investments in Unit Trust Structures The Company also utilizes unit trust structures in its Aflac Japan segment to invest in various asset classes. As the sole investor of these VIEs, the Company is required to consolidate these trusts under U.S. GAAP. VIEs - Not Consolidated The table below reflects the amortized cost, fair value and balance sheet caption in which the Company's investment in VIEs not consolidated are reported. Investments in Variable Interest Entities Not Consolidated September 30, 2021 December 31, 2020 (In millions) Amortized Fair Amortized Fair Assets: Fixed maturity securities, available for sale $ 4,990 $ 6,119 $ 5,477 $ 6,767 Other investments (1) 247 247 178 178 Total investments in VIEs not consolidated $ 5,237 $ 6,366 $ 5,655 $ 6,945 (1) Consists entirely of alternative investments in limited partnerships The Company holds alternative invest |
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS | 9 Months Ended |
Sep. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS | DERIVATIVE INSTRUMENTS The Company's freestanding derivative financial instruments have historically consisted of: • foreign currency forwards and options used in hedging foreign exchange risk on U.S. dollar-denominated investments in Aflac Japan's portfolio, with options used on a standalone basis and/or in a collar strategy • foreign currency forwards and options used to economically hedge certain portions of forecasted cash flows denominated in yen and hedge the Company's long term exposure to a weakening yen • cross-currency interest rate swaps, also referred to as foreign currency swaps, associated with certain senior notes and subordinated debentures • foreign currency swaps that are associated with VIE bond purchase commitments, and investments in special-purpose entities, including VIEs where the Company is the primary beneficiary • interest rate swaps used to economically hedge interest rate fluctuations in certain variable-rate investments • interest rate swaptions used to hedge changes in the fair value associated with interest rate fluctuations for certain U.S. dollar-denominated available-for-sale fixed-maturity securities • bond purchase commitments at the inception of investments in consolidated VIEs. Some of the Company's derivatives are designated as cash flow hedges, fair value hedges or net investment hedges; however, other derivatives do not qualify for hedge accounting or the Company elects not to designate them as accounting hedges. Derivative Types 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 situations where the maturity of the forwards and options is shorter than the underlying investment being hedged, the Company may enter into new forwards and options near maturity of the existing derivative in order to continue hedging the underlying investment. 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 put options and sell call options. In the purchased put transactions, Aflac Japan obtains the option to buy a fixed amount of yen and sell a corresponding amount of U.S. dollars at a specified future date. In the sold call transactions, Aflac Japan agrees to sell a fixed amount of yen and buy a corresponding amount of U.S. dollars at a specified future date. The combination of purchasing the put option and selling the call option results in no net premium being paid (i.e. a costless or zero-cost collar). The Company also uses one sided foreign currency put options to mitigate the settlement risk on U.S. dollar-denominated assets related to extreme foreign currency rate changes. From time to time, the Company may also enter into foreign currency forwards and options to hedge the currency risk associated with the net investment in Aflac Japan. In these forward transactions, the Company agrees with another party to buy a fixed amount of U.S. dollars and sell a corresponding amount of yen at a specified price at a specified future date. In the option transactions, the Company may 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 create a zero-cost collar. Additionally, the Company enters into purchased options to hedge cash flows from the net investment in Aflac Japan. The Company enters into foreign currency swaps pursuant to which it exchanges an initial principal amount in one currency for an initial principal amount of another currency, with an agreement to re-exchange the principal amounts at a future date. 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 the Company's Aflac Japan portfolio to convert foreign-denominated cash flows to yen, the functional currency of Aflac Japan, in order to minimize cash flow fluctuations. The Company also uses foreign currency swaps to economically convert certain of its U.S. dollar-denominated senior note and subordinated debenture principal and interest obligations into yen-denominated obligations. In order to reduce investment income volatility from its variable-rate investments, the Company enters into receive–fixed, pay–floating interest rate swaps. These derivatives are cleared and settled through a central clearinghouse. Swaptions are used to mitigate the adverse impact resulting from significant changes in the fair value of U.S. dollar-denominated available-for-sale securities due to fluctuation in interest rates. In a payer swaption, the Company pays a premium to obtain the right, but not the obligation, to enter into a swap contract where it will pay a fixed rate and receive a floating rate. Interest rate swaption collars are combinations of two swaption positions. In order to maximize the efficiency of the collars while minimizing cost, a collar strategy is used whereby the Company purchases a long payer swaption (the Company purchases an option that allows it to enter into a swap where the Company will pay the fixed rate and receive the floating rate of the swap) and sells a short receiver swaption (the Company sells an option that provides the counterparty with the right to enter into a swap where the Company will receive the fixed rate and pay the floating rate of the swap). The combination of purchasing the long payer swaption and selling the short receiver swaption results in no net premium being paid (i.e. a costless or zero-cost collar). Bond purchase commitments result from repackaged bond structures that are consolidated VIEs whereby there is a delay in the trade date and settlement date of the bond within the structure to ensure completion of all necessary legal agreements to support the consolidated VIE that issues the repackaged bond. Since the Company has a commitment to purchase the underlying bond at a specified price, the agreement meets the definition of a derivative where the value is derived based on the current market value of the bond compared to the fixed purchase price to be paid on the settlement date. Derivative Balance Sheet Classification The table below summarizes the balance sheet classification of the Company's 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. Derivative assets are included in “Other Assets,” while derivative liabilities are included in “Other Liabilities” within the Company’s Consolidated Balance Sheets. 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. September 30, 2021 December 31, 2020 (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 - VIE $ 18 $ 0 $ 2 $ 18 $ 0 $ 1 Total cash flow hedges 18 0 2 18 0 1 Fair value hedges: Foreign currency forwards 62 0 3 64 2 0 Foreign currency options 8,410 1 0 8,865 0 0 Total fair value hedges 8,472 1 3 8,929 2 0 Net investment hedge: Foreign currency forwards 4,996 240 0 5,010 14 84 Foreign currency options 1,954 0 0 2,027 1 0 Total net investment hedge 6,950 240 0 7,037 15 84 Non-qualifying strategies: Foreign currency swaps 2,250 52 22 2,250 47 81 Foreign currency swaps - VIE 3,141 99 354 2,857 133 230 Foreign currency forwards 14,153 353 872 26,528 386 301 Foreign currency options 3,165 0 0 11,037 0 0 Interest rate swaps 3,500 0 16 0 0 0 Forward bond purchase commitment - VIE 45 0 1 0 0 0 Total non-qualifying strategies 26,254 504 1,265 42,672 566 612 Total derivatives $ 41,694 $ 745 $ 1,270 $ 58,656 $ 583 $ 697 Cash Flow Hedges For certain variable-rate U.S. dollar-denominated available-for-sale securities held by Aflac Japan via consolidated VIEs, foreign currency swaps are used to swap the USD variable rate interest and principal payments to fixed rate JPY interest and principal payments. The Company has designated foreign currency swaps 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). The remaining maximum length of time for which these cash flows are hedged is approximately five years. The derivatives in the Company's consolidated VIEs that are not designated as accounting hedges are discussed in the "non-qualifying strategies" section of this note. Fair Value Hedges The Company designates and accounts for certain foreign currency forwards, options, and interest rate swaptions as fair value hedges when they meet the requirements for hedge accounting. The Company recognizes gains and losses on these derivatives as well as the offsetting gain or loss on the related hedged items in current earnings. Foreign currency forwards and options hedge the foreign currency exposure of certain U.S. dollar-denominated available-for-sale fixed-maturity investments held in Aflac Japan. 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 recognized in current earnings and is excluded from the assessment of hedge effectiveness. Interest rate swaptions hedge the interest rate exposure of certain U.S. dollar-denominated available-for-sale securities held in Aflac Japan. For these hedging relationships, the Company excludes time value from the assessment of hedge effectiveness and recognizes changes in the intrinsic value of the swaptions in current earnings within net investment income. The change in the time value of the swaptions is recognized in other comprehensive income (loss) and amortized into earnings (net investment income) over its legal term. 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) (1) Gains (Losses) (2) Gains (Losses) (2) Net Investment Gains (Losses) Recognized for Fair Value Hedge Three Months Ended September 30, 2021: Foreign currency Fixed maturity securities $ (1) $ 0 $ (1) $ 1 $ 0 Foreign currency options Fixed maturity securities (5) (5) 0 0 0 Total gains (losses) $ (6) $ (5) $ (1) $ 1 $ 0 Nine Months Ended September 30, 2021: Foreign currency forwards Fixed maturity securities $ (5) $ 0 $ (5) $ 5 $ 0 Foreign currency options Fixed maturity securities (16) (15) (1) 4 3 Total gains (losses) $ (21) $ (15) $ (6) $ 9 $ 3 Three Months Ended September 30, 2020: Foreign currency forwards Fixed maturity securities $ 1 $ 0 $ 1 $ (1) $ 0 Foreign currency options Fixed maturity securities (2) (2) 0 0 0 Total gains (losses) $ (1) $ (2) $ 1 $ (1) $ 0 Nine Months Ended September 30, 2020: Foreign currency forwards Fixed maturity securities $ (15) $ (8) $ (7) $ 8 $ 1 Foreign currency options Fixed maturity securities (4) (3) (1) 1 0 Total gains (losses) $ (19) $ (11) $ (8) $ 9 $ 1 (1) Gains (losses) excluded from effectiveness testing includes the forward point on foreign currency forwards and time value change on foreign currency options which are reported in the consolidated statement of earnings as net investment gains (losses). It also includes the change in the fair value of the interest rate swaptions related to the time value of the swaptions which is recognized as a component of other comprehensive income (loss). (2) Gains and losses on foreign currency forwards and options and related hedged items are reported in the consolidated statement of earnings as net investment gains (losses). For interest rate swaptions and related hedged items, gains and losses included in the hedge assessment, premium amortization and time value amortization while the hedge items are still outstanding are reported within net investment income. The time value gains and losses for interest rate swaptions when the related hedged items are redeemed are reported in net investment gains and losses consistent with the impact of the hedged item. For the three-month and nine-month periods ended September 30, 2021 and 2020, gains and losses included in the hedge assessment on interest rate swaptions and related hedged items were immaterial. The following table shows the carrying amounts of assets designated and qualifying as hedged items in fair value hedges of interest rate risk and the related cumulative hedge adjustment included in the carrying amount. (In millions) Carrying Amount of the Hedged Assets/(Liabilities) (1) Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of Hedged Assets/(Liabilities) September 30, 2021 December 31, 2020 September 30, 2021 December 31, 2020 Fixed maturity securities $ 3,261 $ 4,331 $ 216 $ 237 (1) The balance includes hedging adjustment on discontinued hedging relationships of $216 in 2021 and $237 in 2020. Net Investment Hedge The Company's investment in Aflac Japan is affected by changes in the yen/dollar exchange rate. To mitigate this exposure, the Parent Company's yen-denominated liabilities (see Note 8) have been designated as non-derivative hedges and certain foreign currency forwards and options have designated as derivative hedges of the foreign currency exposure of the Company's net investment in Aflac Japan. The Company's net investment hedge was effective during the three- and nine-month periods ended September 30, 2021 and 2020, respectively. Non-qualifying Strategies For the Company's 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 n et i nvestment gains (losses). The amount of gain or loss recognized in earnings for the Company's 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 securities associated with these swaps is recorded through other comprehensive income. As of September 30, 2021, the Parent Company had $2.3 billion notional amount of cross-currency interest rate swap agreements related to certain of its U.S. dollar-denominated senior notes to effectively convert a portion of the interest on the notes from U.S dollar to Japanese yen. Changes in the values of these swaps are recorded through current period earnings. For additional information regarding these swaps, see Note 9 of the Notes to the Consolidated Financial Statements in the 2020 Annual Report. The Company uses foreign exchange forwards and options to economically mitigate the currency risk of some of its U.S. dollar-denominated loan receivables held within the Aflac Japan segment. These arrangements are not designated as accounting hedges, as the foreign currency remeasurement of the loan receivables impacts current period earnings, and substantially offsets gains and losses from foreign exchange forwards within net investment gains (losses). The Company also has certain foreign exchange forwards on U.S. dollar-denominated available-for-sale securities where hedge accounting is not being applied. The Company uses interest rate swaps to economically convert the variable rate investment income to a fixed rate on certain variable-rate investments. Impact of Derivatives and Hedging Instruments The following table summarizes the impact to earnings and other comprehensive income (loss) from all derivatives and hedging instruments. Three Months Ended September 30, 2021 2020 (In millions) Net Investment Income (1) Net Investment Other (2) Net Investment Income (1) Net Investment Other (2) Qualifying hedges: Cash flow hedges: Foreign currency swaps - VIE $ 0 $ (1) $ 1 $ 0 $ 0 $ 2 Total cash flow hedges 0 (1) (3) 1 0 0 (3) 2 Fair value hedges: Foreign currency forwards (3) 0 0 Foreign currency options (3) (5) (2) Interest rate swaptions (3) (1) (1) 1 0 0 0 Total fair value hedges (1) (6) 1 0 (2) 0 Net investment hedge: Non-derivative hedging 0 41 0 (51) Foreign currency forwards (42) 55 (16) (91) Foreign currency options (1) 0 (2) 0 Total net investment hedge (43) 96 (18) (142) Non-qualifying strategies: Foreign currency swaps 6 (27) Foreign currency swaps - VIE (36) 40 Foreign currency forwards (84) 139 Foreign currency options 0 4 Interest rate swaps (9) 0 Forward bond purchase (1) 2 Total non- qualifying strategies (124) 158 Total $ (1) $ (174) $ 98 $ 0 $ 138 $ (140) (1) Interest expense/income on cash flow hedges are recorded in net investment income. For interest rate swaptions classified as fair value hedges, the change in the time value of the swaptions is recognized in other comprehensive income (loss) and amortized into net investment income over its legal term. If the swaption is early terminated but the hedge item is still outstanding, the amortization of disposal amount of the swaptions is recorded in net investment income over the remaining life of the hedged items. (2) Gains and losses on cash flow hedges and the change in the fair value of interest rate swaptions related to the time value of the swaptions in fair value hedges are recorded as unrealized gains (losses). Gains and losses on net investment hedges related to changes in foreign currency spot rates are recorded in the unrealized foreign currency translation gains (losses) line in the consolidated statement of comprehensive income (loss). (3) Impact of cash flow hedges reported as net investment gains (losses) includes $1 of losses reclassified from accumulated other comprehensive income (loss) into earnings during the three-month period ended September 30, 2021. In addition, $1 of losses and an immaterial amount were reclassified from accumulated other comprehensive income (loss) into earnings during the three-month periods ended September 30, 2021 and 2020, respectively, related to fair value hedges excluded component . Impact shown net of effect of hedged items (see Fair Value Hedges section of this Note 4 for further detail). Nine Months Ended September 30, 2021 2020 (In millions) Net Investment Income (1) Net Investment Other (2) Net Investment Income (1) Net Investment Other (2) Qualifying hedges: Cash flow hedges: Foreign currency swaps - VIE $ 0 $ (3) $ 2 $ (1) $ 0 $ (4) Total cash flow hedges 0 (3) (3) 2 (1) 0 (3) (4) Fair value hedges: Foreign currency forwards (3) 0 (7) Foreign currency options (3) (12) (3) Interest rate swaptions (3) (1) (1) 1 (1) 0 1 Total fair value hedges (1) (13) 1 (1) (10) 1 Net investment hedge: Non-derivative hedging 0 237 0 (72) Foreign currency forwards 7 396 136 (166) Foreign currency options (4) 0 (3) 0 Total net investment hedge 3 633 133 (238) Non-qualifying strategies: Foreign currency swaps 105 54 Foreign currency swaps - VIE (115) (185) Foreign currency forwards (527) 133 Foreign currency options 1 (1) Interest rate swaps (6) 49 Forward bond purchase (2) 0 Total non-qualifying strategies (544) 50 Total $ (1) $ (557) $ 636 $ (2) $ 173 $ (241) (1) Interest expense/income on cash flow hedges are recorded in net investment income. For interest rate swaptions classified as fair value hedges, the change in the time value of the swaptions is recognized in other comprehensive income (loss) and amortized into net investment income over its legal term. If the swaption is early terminated but the hedge item is still outstanding, the amortization of disposal amount of the swaptions is recorded in net investment income over the remaining life of the hedged items. (2) Gains and losses on cash flow hedges and the change in the fair value of interest rate swaptions related to the time value of the swaptions in fair value hedges are recorded as unrealized gains (losses). Gains and losses on net investment hedges related to changes in foreign currency spot rates are recorded in the unrealized foreign currency translation gains (losses) line in the consolidated statement of comprehensive income (loss). (3) Impact of cash flow hedges reported as net investment gains (losses) includes $3 of losses reclassified from accumulated other comprehensive income (loss) into earnings during the nine-month period ended September 30, 2021. In addition, $1 of losses and an immaterial amount were reclassified from accumulated other comprehensive income (loss) into earnings during the nine-month periods ended September 30, 2021 and 2020, respectively, related to fair value hedges excluded component. Impact shown net of effect of hedged items (see Fair Value Hedges section of this Note 4 for further detail). As of September 30, 2021, $5 million of deferred losses on derivative instruments recorded in accumulated other comprehensive income are expected to be reclassified to earnings during the next twelve months. Credit Risk Assumed through Derivatives For the foreign currency and credit default swaps associated with the Company's VIE investments for which it is the primary beneficiary, the Company bears the risk of loss due to counterparty default even though it is not a direct counterparty to those contracts. The Company is a direct counterparty to the foreign currency swaps that it has entered into in connection with certain of its senior notes and subordinated debentures; foreign currency forwards; and foreign currency options, and therefore the Company is exposed to credit risk in the event of nonperformance by the counterparties in those contracts. The risk of counterparty default for the Company's foreign currency swaps, certain foreign currency forwards, and foreign currency options is mitigated by collateral posting requirements that counterparties to those transactions must meet. As of September 30, 2021, all of the Company's derivative agreement counterparties were investment grade. The Company engages in over-the-counter (OTC) bilateral 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. The Company mitigates 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 the Company 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. The Company also engages in OTC cleared derivative transactions through regulated central clearing counterparties. These positions are marked to market and margined on a daily basis (both initial margin and variation margin), and the Company has minimal exposure to credit-related losses in the event of nonperformance by counterparties to these derivatives. Collateral posted by the Company 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 $694 million and $268 million as of September 30, 2021, and December 31, 2020, respectively. If the credit-risk-related contingent features underlying these agreements had been triggered on September 30, 2021, the Company estimates that it would be required to post a maximum of $169 million of additional collateral to these derivative counterparties. The Company is generally allowed to sell or repledge collateral obtained from its derivative counterparties, although it does 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 Most 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 its subsidiaries and the 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. The Company has securities lending agreements with unaffiliated financial institutions that post collateral to the Company in return for the use of its fixed maturity and public equity securities (see Note 3). When the Company has 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 the Company to keep and apply collateral received if the counterparty failed to return the securities borrowed from the Company as contractually agreed. The tables below summarize the Company's derivatives and securities lending transactions, and as reflected in the tables, in accordance with U.S. GAAP, the Company's policy is to not offset these financial instruments in the Consolidated Balance Sheets. Offsetting of Financial Assets and Derivative Assets September 30, 2021 Gross Amounts Not Offset (In millions) Gross Amount of Recognized Assets Gross Amount Net Amount of Assets Presented Financial Instruments Securities Cash Collateral Received Net Amount Derivative Derivative assets subject to a master netting agreement or offsetting arrangement OTC - bilateral $ 646 $ 0 $ 646 $ (375) $ (21) $ (249) $ 1 Total derivative 646 0 646 (375) (21) (249) 1 Derivative assets not subject to a master netting agreement or offsetting arrangement OTC - bilateral 99 99 99 Total derivative 99 99 99 Total derivative 745 0 745 (375) (21) (249) 100 Securities lending 2,827 0 2,827 0 0 (2,827) 0 Total $ 3,572 $ 0 $ 3,572 $ (375) $ (21) $ (3,076) $ 100 December 31, 2020 Gross Amounts Not Offset (In millions) Gross Amount of Recognized Assets Gross Amount Net Amount of Assets Presented Financial Instruments Securities Cash Collateral Received Net Amount Derivative Derivative assets subject to a master netting agreement or offsetting arrangement OTC - bilateral $ 450 $ 0 $ 450 $ (295) $ (73) $ (76) $ 6 Total derivative 450 0 450 (295) (73) (76) 6 Derivative assets not subject to a master netting agreement or offsetting arrangement OTC - bilateral 133 133 133 Total derivative 133 133 133 Total derivative 583 0 583 (295) (73) (76) 139 Securities lending 940 0 940 0 0 (940) 0 Total $ 1,523 $ 0 $ 1,523 $ (295) $ (73) $ (1,016) $ 139 Offsetting of Financial Liabilities and Derivative Liabilities September 30, 2021 Gross Amounts Not Offset (In millions) Gross Amount of Recognized Liabilities Gross Amount Net Amount of Liabilities Presented Financial Instruments Securities Cash Collateral Pledged Net Amount Derivative Derivative liabilities subject to a master netting agreement or offsetting arrangement OTC - bilateral $ 898 $ 0 $ 898 $ (375) $ (491) $ (19) $ 13 OTC - cleared 16 0 16 0 0 (15) 1 Total derivative 914 0 914 (375) (491) (34) 14 Derivative liabilities not subject to a master netting agreement or offsetting arrangement OTC - bilateral 356 356 356 Total derivative 356 356 356 Total derivative 1,270 0 1,270 (375) (491) (34) 370 Securities lending 2,849 0 2,849 (2,827) 0 0 22 Total $ 4,119 $ 0 $ 4,119 $ (3,202) $ (491) $ (34) $ 392 December 31, 2020 Gross Amounts Not Offset (In millions) Gross Amount of Recognized Liabilities Gross Amount Net Amount of Liabilities Presented Financial Instruments Securities Cash Collateral Pledged Net Amount Derivative Derivative liabilities subject to a master netting agreement or offsetting arrangement OTC - bilateral $ 466 $ 0 $ 466 $ (295) $ (43) $ (69) $ 59 Total derivative 466 0 466 (295) (43) (69) 59 Derivative liabilities not subject to a master netting agreement or offsetting arrangement OTC - bilateral 231 231 231 Total derivative 231 231 231 Total derivative 697 0 697 (295) (43) (69) 290 Securities lending 964 0 964 (940) 0 0 24 Total $ 1,661 $ 0 $ 1,661 $ (1,235) $ (43) $ (69) $ 314 For additional information on the Company's 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 2020 Annual Report. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Sep. 30, 2021 | |
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. September 30, 2021 (In millions) Quoted Prices in Significant Significant Total Assets: Securities available for sale, carried at Fixed maturity securities: Government and agencies $ 33,903 $ 1,323 $ 0 $ 35,226 Municipalities 0 2,937 0 2,937 Mortgage- and asset-backed securities 0 1,042 250 1,292 Public utilities 0 9,792 523 10,315 Sovereign and supranational 0 1,097 45 1,142 Banks/financial institutions 0 11,696 46 11,742 Other corporate 0 37,762 306 38,068 Total fixed maturity securities 33,903 65,649 1,170 100,722 Equity securities 1,210 90 161 1,461 Other investments 1,833 0 0 1,833 Cash and cash equivalents 6,208 0 0 6,208 Other assets: Foreign currency swaps 0 52 99 151 Foreign currency forwards 0 593 0 593 Foreign currency options 0 1 0 1 Total other assets 0 646 99 745 Total assets $ 43,154 $ 66,385 $ 1,430 $ 110,969 Liabilities: Other liabilities: Foreign currency swaps $ 0 $ 22 $ 356 $ 378 Foreign currency forwards 0 875 0 875 Interest rate swaps 0 16 0 16 Forward bond purchase commitment 0 1 0 1 Total liabilities $ 0 $ 914 $ 356 $ 1,270 December 31, 2020 (In millions) Quoted Prices in Significant Significant Total Assets: Securities available for sale, carried at Fixed maturity securities: Government and agencies $ 36,032 $ 1,318 $ 0 $ 37,350 Municipalities 0 3,018 0 3,018 Mortgage- and asset-backed securities 0 814 224 1,038 Public utilities 0 10,395 422 10,817 Sovereign and supranational 0 1,334 48 1,382 Banks/financial institutions 0 12,036 24 12,060 Other corporate 0 39,918 299 40,217 Total fixed maturity securities 36,032 68,833 1,017 105,882 Equity securities 1,095 86 102 1,283 Other investments 1,139 0 0 1,139 Cash and cash equivalents 5,141 0 0 5,141 Other assets: Foreign currency swaps 0 47 133 180 Foreign currency forwards 0 402 0 402 Foreign currency options 0 1 0 1 Total other assets 0 450 133 583 Total assets $ 43,407 $ 69,369 $ 1,252 $ 114,028 Liabilities: Other liabilities: Foreign currency swaps $ 0 $ 81 $ 231 $ 312 Foreign currency forwards 0 385 0 385 Total liabilities $ 0 $ 466 $ 231 $ 697 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. September 30, 2021 (In millions) Carrying Quoted Prices in Significant Significant Total Assets: Securities held to maturity, Fixed maturity securities: Government and agencies $ 21,673 $ 26,304 $ 237 $ 0 $ 26,541 Municipalities 346 0 453 0 453 Public utilities 44 0 57 0 57 Sovereign and 528 0 667 0 667 Other corporate 22 0 30 0 30 Commercial mortgage and 11,388 0 0 11,596 11,596 Other investments (1) 19 0 19 0 19 Total assets $ 34,020 $ 26,304 $ 1,463 $ 11,596 $ 39,363 Liabilities: Other policyholders’ funds $ 7,286 $ 0 $ 0 $ 7,175 $ 7,175 Notes payable 7,937 0 8,416 266 8,682 Total liabilities $ 15,223 $ 0 $ 8,416 $ 7,441 $ 15,857 (1) Excludes policy loans of $241 and equity method investments of $1,519, at carrying value December 31, 2020 (In millions) Carrying Quoted Prices in Significant Significant Total Assets: Securities held to maturity, Fixed maturity securities: Government and agencies $ 23,445 $ 28,810 $ 260 $ 0 $ 29,070 Municipalities 377 0 499 0 499 Public utilities 47 0 61 0 61 Sovereign and 571 0 736 0 736 Other corporate 24 0 33 0 33 Commercial mortgage and 10,554 0 0 10,655 10,655 Other investments (1) 26 0 26 0 26 Total assets $ 35,044 $ 28,810 $ 1,615 $ 10,655 $ 41,080 Liabilities: Other policyholders’ funds $ 7,824 $ 0 $ 0 $ 7,709 $ 7,709 Notes payable 7,745 0 8,396 288 8,684 Total liabilities $ 15,569 $ 0 $ 8,396 $ 7,997 $ 16,393 (1) Excludes policy loans of $260 and equity method investments of $1,004, at carrying value Fair Value of Financial Instruments Fixed maturity and equity securities The Company determines the fair values of fixed maturity 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), in-house valuations and non-binding price quotes the Company obtains from outside brokers. A third party pricing vendor has developed valuation models to determine fair values of privately issued securities. Starting in June 2021, these models and associated processes and controls were substantially transitioned to and executed by company personnel. These models are discounted cash flow (DCF) valuation models, but also use information from related markets, specifically the credit default swap (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 4) bond indices that are comparative in rating, industry, maturity and region. The pricing data and market quotes the Company obtains from outside sources, including third party pricing services, are reviewed internally for reasonableness. If a fair value appears unreasonable, the Company will re-examine the inputs and assess the reasonableness of the pricing data with the vendor. Additionally, the Company may compare the inputs to relevant market indices and other performance measurements. Based on management's analysis, 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. Beginning in the third quarter of 2020, the Company refined these valuation models to explicitly incorporate currency basis swap adjustments (market observable data) to assumed interest rate curves where appropriate. The Company has performed verification of the inputs and calculations in any valuation models to confirm that the valuations represent reasonable estimates of fair value. For the periods presented, the Company has not adjusted the quotes or prices it obtains from the pricing services and brokers it uses. The following tables present the pricing sources for the fair values of the Company's fixed maturity and equity securities. September 30, 2021 (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 maturity securities: Government and agencies: Third party pricing vendor $ 33,903 $ 831 $ 0 $ 34,734 Internal 0 492 0 492 Total government and agencies 33,903 1,323 0 35,226 Municipalities: Third party pricing vendor 0 2,114 0 2,114 Internal 0 823 0 823 Total municipalities 0 2,937 0 2,937 Mortgage- and asset-backed securities: Third party pricing vendor 0 1,021 0 1,021 Broker/other 0 21 250 271 Total mortgage- and asset-backed securities 0 1,042 250 1,292 Public utilities: Third party pricing vendor 0 4,628 0 4,628 Internal 0 5,163 0 5,163 Broker/other 0 1 523 524 Total public utilities 0 9,792 523 10,315 Sovereign and supranational: Third party pricing vendor 0 279 0 279 Internal 0 818 0 818 Broker/other 0 0 45 45 Total sovereign and supranational 0 1,097 45 1,142 Banks/financial institutions: Third party pricing vendor 0 5,191 0 5,191 Internal 0 6,505 0 6,505 Broker/other 0 0 46 46 Total banks/financial institutions 0 11,696 46 11,742 Other corporate: Third party pricing vendor 0 29,601 0 29,601 Internal 0 8,155 0 8,155 Broker/other 0 6 306 312 Total other corporate 0 37,762 306 38,068 Total securities available for sale $ 33,903 $ 65,649 $ 1,170 $ 100,722 Equity securities, carried at fair value: Third party pricing vendor $ 1,210 $ 90 $ 0 $ 1,300 Broker/other 0 0 161 161 Total equity securities $ 1,210 $ 90 $ 161 $ 1,461 September 30, 2021 (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 maturity securities: Government and agencies: Third party pricing vendor $ 26,304 $ 237 $ 0 $ 26,541 Total government and agencies 26,304 237 0 26,541 Municipalities: Third party pricing vendor 0 453 0 453 Total municipalities 0 453 0 453 Public utilities: Third party pricing vendor 0 57 0 57 Total public utilities 0 57 0 57 Sovereign and supranational: Third party pricing vendor 0 322 0 322 Broker/other 0 345 0 345 Total sovereign and supranational 0 667 0 667 Other corporate: Third party pricing vendor 0 30 0 30 Total other corporate 0 30 0 30 Total securities held to maturity $ 26,304 $ 1,444 $ 0 $ 27,748 December 31, 2020 (In millions) Quoted Prices in Active Markets Significant Observable Significant Unobservable Inputs Total Securities available for sale, carried at fair value: Fixed maturity securities: Government and agencies: Third party pricing vendor $ 36,032 $ 1,318 $ 0 $ 37,350 Total government and agencies 36,032 1,318 0 37,350 Municipalities: Third party pricing vendor 0 3,018 0 3,018 Total municipalities 0 3,018 0 3,018 Mortgage- and asset-backed securities: Third party pricing vendor 0 364 0 364 Broker/other 0 450 224 674 Total mortgage- and asset-backed securities 0 814 224 1,038 Public utilities: Third party pricing vendor 0 10,395 0 10,395 Broker/other 0 0 422 422 Total public utilities 0 10,395 422 10,817 Sovereign and supranational: Third party pricing vendor 0 1,334 0 1,334 Broker/other 0 0 48 48 Total sovereign and supranational 0 1,334 48 1,382 Banks/financial institutions: Third party pricing vendor 0 12,036 0 12,036 Broker/other 0 0 24 24 Total banks/financial institutions 0 12,036 24 12,060 Other corporate: Third party pricing vendor 0 39,886 0 39,886 Broker/other 0 32 299 331 Total other corporate 0 39,918 299 40,217 Total securities available for sale $ 36,032 $ 68,833 $ 1,017 $ 105,882 Equity securities, carried at fair value: Third party pricing vendor $ 1,095 $ 86 $ 0 $ 1,181 Broker/other 0 0 102 102 Total equity securities $ 1,095 $ 86 $ 102 $ 1,283 December 31, 2020 (In millions) Quoted Prices in Active Markets Significant Observable Significant Unobservable Inputs Total Securities held to maturity, carried at amortized cost: Fixed maturity securities: Government and agencies: Third party pricing vendor $ 28,810 $ 260 $ 0 $ 29,070 Total government and agencies 28,810 260 0 29,070 Municipalities: Third party pricing vendor 0 499 0 499 Total municipalities 0 499 0 499 Public utilities: Third party pricing vendor 0 61 0 61 Total public utilities 0 61 0 61 Sovereign and supranational: Third party pricing vendor 0 736 0 736 Total sovereign and supranational 0 736 0 736 Other corporate: Third party pricing vendor 0 33 0 33 Total other corporate 0 33 0 33 Total securities held to maturity $ 28,810 $ 1,589 $ 0 $ 30,399 The following is a discussion of the determination of fair value of the Company's remaining financial instruments. Derivatives The Company uses 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. The significant inputs to pricing derivatives are generally observable in the market or can be derived by observable market data. When these inputs are observable, the derivatives are classified as Level 2. The Company uses present value techniques to value non-option based derivatives. It also uses option pricing models to value option based derivatives. Key inputs are as follows: Instrument Type Level 2 Level 3 Interest rate derivatives Swap yield curves Basic curves Interest rate volatility (1) Not applicable Foreign currency exchange rate derivatives - Non-VIES (forwards, swaps and options) Foreign currency forward rates Swap yield curves Basis curves Foreign currency spot rates Cross foreign currency basis curves Foreign currency volatility (1) Not applicable Foreign currency exchange rate derivatives - VIEs (swaps) Foreign currency spot rates Swap yield curves (2) Credit default swap curves (2) Basis curves (2) Recovery rates Foreign currency forward rates (2) Foreign cross currency basis curves (2) (1) Option-based only (2) Extrapolation beyond the observable limits of the curve(s). The fair values of the foreign currency forwards and options are based on observable market inputs, therefore they are classified as Level 2. To determine the fair value of its interest rate derivatives, the Company uses inputs that are generally observable in the market or can be derived from observable market data. Interest rate swaps are cleared trades. In a cleared swap contract, the clearinghouse provides benefits to the counterparties similar to contracts listed for investment traded on an exchange since it maintains a daily margin to mitigate counterparties' credit risk. These derivatives are priced using observable inputs, accordingly, they are classified as Level 2. For its interest rate swaptions, the Company estimates their fair values using observable market data, including interest rate curves and volatility. Their fair values are also classified as Level 2. For derivatives associated with VIEs where the Company is the primary beneficiary, the Company is 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. Based on an analysis of these derivatives and a review of the methodology employed by the pricing vendor, the Company 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 the Company's consolidated VIEs are classified as Level 3 of the fair value hierarchy. For forward bond purchase commitments with VIEs, the fair value of the derivative is based on the difference in the fixed purchase price and the current market value of the related bond prior to the settlement date. Since the bond is typically a public bond with readily available pricing, the derivatives associated with the forward purchase commitment are classified as Level 2 of the fair value hierarchy. Commercial mortgage and other loans Commercial mortgage and other loans include TREs, CMLs and MMLs. The Company's 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. 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. Other investments Other investments includes short-term investments that are measured at fair value where amortized cost approximates fair value. Other policyholders' funds The largest component of the other policyholders' funds liability is the Company's annuity line of business in Aflac Japan. The Company's annuities have fixed benefits and premiums. For this product, the Company estimates 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. The Company periodically checks the cash value against discounted cash flow projections for reasonableness. The Company considers its inputs for this valuation to be unobservable and have accordingly classified this valuation as Level 3. Notes payable The fair values of the Company's publicly issued notes payable are determined by utilizing available sources of observable inputs from third party pricing vendors and are classified as Level 2. The fair values of the Company's yen-denominated loans approximate their carrying values and are classified as Level 3. Transfers between Hierarchy Levels and Level 3 Rollforward Assets and liabilities are transferred into Level 3 when a significant input cannot be corroborated with market observable data. This occurs when market activity decreases significantly and underlying inputs cannot be observed, current prices are not available, and/or when there are significant variances in quoted prices, thereby affecting transparency. Assets and liabilities are transferred out of Level 3 when circumstances change such that a significant input can be corroborated with market observable data. This may be due to a significant increase in market activity, a specific event, or one or more significant input(s) becoming observable. The following tables present the changes in fair value of the Company's investments and derivatives carried at fair value classified as Level 3. Derivative assets and liabilities are presented as a net value. Three Months Ended Fixed Maturity Securities Equity Derivatives (In millions) Mortgage- Public Sovereign and Supranational Banks/ Other Foreign Total Balance, beginning of period $ 258 $ 480 $ 45 $ 38 $ 316 $ 158 $ (200) $ 1,095 Net investment gains (losses) included in 0 0 0 0 2 (1) (57) (56) Unrealized gains (losses) included in other (4) (3) 0 0 (7) 0 0 (14) Purchases, issuances, sales and Purchases 35 54 0 8 0 12 0 109 Issuances 0 0 0 0 0 0 0 0 Sales 0 0 0 0 0 (8) 0 (8) Settlements 0 (8) 0 0 0 0 0 (8) Transfers into Level 3 0 0 0 0 0 0 0 0 Transfers out of Level 3 (39) 0 0 0 (5) 0 0 (44) Balance, end of period $ 250 $ 523 $ 45 $ 46 $ 306 $ 161 $ (257) $ 1,074 Changes in unrealized gains (losses) $ (4) $ (3) $ 0 $ 0 $ (7) $ (1) $ (57) $ (72) Three Months Ended Fixed Maturity Securities Equity Derivatives (In millions) Mortgage- Public Banks/ Other Foreign Total Balance, beginning of period $ 188 $ 322 $ 24 $ 243 $ 86 $ (168) $ 695 Net investment gains (losses) included 0 0 0 0 0 23 23 Unrealized gains (losses) included in 3 15 0 24 0 2 44 Purchases, issuances, sales and settlements: Purchases 0 33 0 1 5 0 39 Issuances 0 0 0 0 0 0 0 Sales 0 0 0 0 (5) 0 (5) Settlements 0 (2) 0 0 0 0 (2) 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 $ 191 $ 368 $ 24 $ 268 $ 86 $ (143) $ 794 Changes in unrealized gains (losses) $ 0 $ 0 $ 0 $ 0 $ 0 $ 23 $ 23 Nine Months Ended Fixed Maturity Securities Equity Derivatives (In millions) Mortgage- Public Sovereign Banks/ Other Foreign Total Balance, beginning of period $ 224 $ 422 $ 48 $ 24 $ 299 $ 102 $ (98) $ 1,021 Net investment gains (losses) included 0 0 0 0 2 21 (158) (135) Unrealized gains (losses) included in (19) (13) (3) (1) (5) 0 (1) (42) Purchases, issuances, sales Purchases 99 132 0 23 0 29 0 283 Issuances 0 0 0 0 0 17 0 17 Sales 0 0 (23) 0 0 (8) 0 (31) Settlements 0 (18) 0 0 (17) 0 0 (35) Transfers into Level 3 0 0 23 0 32 0 0 55 Transfers out of Level 3 (54) 0 0 0 (5) 0 0 (59) Balance, end of period $ 250 $ 523 $ 45 $ 46 $ 306 $ 161 $ (257) $ 1,074 Changes in unrealized gains $ (19) $ (13) $ (3) $ (1) $ (5) $ 21 $ (158) $ (178) Nine Months Ended Fixed Maturity Securities Equity Derivatives (In millions) Mortgage- Public Banks/ Other Foreign Total Balance, beginning of period $ 178 $ 224 $ 23 $ 262 $ 80 $ 43 $ 810 Net investment gains (losses) included 0 0 0 0 0 (184) (184) Unrealized gains (losses) included in other 5 6 0 8 0 (2) 17 Purchases, issuances, sales and settlements: Purchases 0 129 1 13 12 0 155 Issuances 0 0 0 0 0 0 0 Sales 0 0 0 0 (6) 0 (6) Settlements (1) (6) 0 0 0 0 (7) Transfers into Level 3 9 15 0 0 0 0 24 Transfers out of Level 3 0 0 0 (15) 0 0 (15) Balance, end of period $ 191 $ 368 $ 24 $ 268 $ 86 $ (143) $ 794 Changes in unrealized gains (losses) relating $ 0 $ 0 $ 0 $ 0 $ 0 $ (184) $ (184) Fair Value Sensitivity Level 3 Significant Unobservable Input Sensitivity The following tables summarize the significant unobservable inputs used in the valuation of the Company's Level 3 investments and derivatives carried at fair value. Included in the tables are the inputs or range of possible inputs that have an effect on the overall valuation of the financial instruments. September 30, 2021 (In millions) Fair Value Valuation Technique(s) Unobservable Input Range Assets: Securities available for sale, carried at fair value: Fixed maturity securities: Mortgage- and asset-backed securities $ 250 Consensus pricing Offered quotes N/A (a) Public utilities 523 Discounted cash flow Credit spreads N/A (a) Sovereign and supranational 45 Discounted cash flow Historical volatility N/A (a) Banks/financial institutions 46 Consensus pricing Offered quotes N/A (a) Other corporate 306 Discounted cash flow Credit spreads N/A (a) Equity securities 161 Net asset value Offered quotes N/A (a) Other assets: Foreign currency swaps 34 Discounted cash flow Interest rates (USD) 1.51% - 1.79% (b) Interest rates (JPY) .11% - .53% (c) CDS spreads 23 bps - 124 bps 65 Discounted cash flow Interest rates (USD) 1.51% - 1.79% (b) Interest rates (JPY) .11% - .53% (c) Total assets $ 1,430 Liabilities: Other liabilities: Foreign currency swaps $ 167 Discounted cash flow Interest rates (USD) 1.51% - 1.79% (b) Interest rates (JPY) .11% - .53% (c) CDS spreads 23 bps - 182 bps 189 Discounted cash flow Interest rates (USD) 1.51% - 1.79% (b) Interest rates (JPY) .11% - .53% (c) Total liabilities $ 356 (a) N/A represents securities where the Company receives unadjusted broker quotes and for which there is no transparency into the providers' valuation techniques or unobservable inputs. (b) Inputs derived from U.S. long-term rates to accommodate long maturity nature of the Company's swaps (c) Inputs derived from Japan long-term rates to accommodate long maturity nature of the Company's swaps December 31, 2020 (In millions) Fair Value Valuation Technique(s) Unobservable Input Range Assets: Securities available for sale, carried at fair value: Fixed maturity securities: Mortgage- and asset-backed securities $ 224 Consensus pricing Offered quotes N/A (a) Public utilities 422 Discounted cash flow Credit spreads N/A (a) Sovereign and supranational 48 Discounted cash flow Historical volatility N/A (a) Banks/financial institutions 24 Consensus pricing Offered quotes N/A (a) Other corporate 299 Discounted cash flow Credit spreads N/A (a) Equity securities 102 Net asset value Offered quotes N/A (a) Other assets: Foreign currency swaps 69 Discounted cash flow Interest rates (USD) .93% - 1.40% (b) Interest rates (JPY) .05% - .43% (c) CDS spreads 22 bps - 128 bps 64 Discounted cash flow Interest rates (USD) .93% - 1.40% (b) Interest rates (JPY) .05% - .43% (c) Total assets $ 1,252 Liabilities: Other liabilities: Foreign currency swaps $ 160 Discounted cash flow Interest rates (USD) .93% - 1.12% (b) Interest rates (JPY) .05% - .35% (c) CDS spreads 41 bps - 140 bps 71 Discounted cash flow Interest rates (USD) .93% - 1.12% (b) Interest rates (JPY) .05% - .35% (c) Total liabilities $ 231 (a) N/A represents securities where the Company receives unadjusted broker quotes and for which there is no transparency into the providers' valuation techniques or unobservable inputs. (b) Inputs derived from U.S. long-term rates to accommodate long maturity nature of the Company's swaps (c) Inputs derived from Japan long-term rates to accommodate long maturity nature of the Company's swaps 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 The Company holds 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 the Company's valuation model price is overridden because it implies a value that is not consistent with current market conditions, the Company will solicit bids from a limited number of brokers. The Company also receives unadjusted prices from brokers for its 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 and CDS Spreads The significant drivers of the valuation of the foreign exchange swaps are interest rates and CDS spreads. Some of the Company's swaps have long maturities that increase the sensitivity of the swaps to interest rate fluctuations. For the Company's foreign exchange or cross currency swaps that are in a net asset position, an increase in yen interest rates (all other factors held constant) will decrease the present value of the yen final settlement receivable (receive leg), thus decreasing the value of the swap as long as the derivative remains in a net asset position. Foreign exchange swaps also have a lump-sum final settlement of foreign exchange principal amounts at the termination of the swap. Assuming all other factors are held constant, an increase in yen interest rates will decrease the receive leg and decrease the net value of the swap. Likewise, holding all other factors constant, an increase in U.S. dollar interest rates will increase the swap's net value due to the decrease in the present value of the dollar final settlement payable (pay leg). The extinguisher feature in most of the Company's VIE 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, the Company applies 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. For additional information on the Company's 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 2020 Annual Report. |
POLICY LIABILITIES
POLICY LIABILITIES | 9 Months Ended |
Sep. 30, 2021 | |
Insurance Loss Reserves [Abstract] | |
POLICY LIABILITIES | POLICY LIABILITIES Changes in the liability for unpaid policy claims were as follows: Three Months Ended Nine Months Ended (In millions) 2021 2020 2021 2020 Unpaid supplemental health claims, beginning of period $ 4,162 $ 4,041 $ 4,389 $ 3,968 Less reinsurance recoverables 37 37 39 31 Net balance, beginning of period 4,125 4,004 4,350 3,937 Add claims incurred during the period related to: Current year 1,720 1,780 5,302 5,354 Prior years (215) (105) (739) (408) Total incurred 1,505 1,675 4,563 4,946 Less claims paid during the period on claims incurred during: Current year 1,279 1,295 2,947 2,971 Prior years 219 249 1,676 1,811 Total paid 1,498 1,544 4,623 4,782 Effect of foreign exchange rate changes on unpaid claims (29) 42 (187) 76 Net balance, end of period 4,103 4,177 4,103 4,177 Add reinsurance recoverables 39 40 39 40 Unpaid supplemental health claims, end of period 4,142 4,217 4,142 4,217 Unpaid life claims, end of period 767 759 767 759 Total liability for unpaid policy claims $ 4,909 $ 4,976 $ 4,909 $ 4,976 The incurred claims development related to prior years reflects favorable claims experience compared to previous estimates. The favorable claims development of $739 million for the nine-month period ended September 30, 2021 comprises approximately $369 million from Japan and $370 million from the U.S., representing 49.9% and 50.1% of the total, respectively. Excluding the impact of foreign exchange of a loss of approximately $11 million from December 31, 2020 to September 30, 2021, the favorable claims development in Japan would have been approximately $380 million, representing approximately 51% of the total. The Company has experienced continued favorable claim trends in 2021 for its core health products in Japan. During the first nine months of 2021, there were impacts from lower utilization of healthcare services, due to the COVID-19 pandemic. This impacted both cancer and medical products, as the Japan population was avoiding doctor and hospital visits and staying home more. This resulted in lower sickness, accident, and cancer incurred claims. In addition, cancer treatment patterns in Japan are continuing to be influenced by significant advances in early-detection techniques and by the increased use of pathological diagnosis rather than clinical exams. Additionally, follow-up radiation and chemotherapy treatments are occurring more often on an outpatient basis. Such changes in treatment not only increase the quality of life and initial outcomes for the patients, but also decrease the average length of each hospital stay, resulting in favorable claims development. For the majority of the Company's major U.S. accident and health lines of business, including accident, hospital indemnity, cancer, critical illness and short-term disability, the incurred claims development related to prior years reflects favorable claims experience compared to previous estimates. The U.S. portion of the favorable claims development includes $143 million related to refinements in estimates for COVID and non-COVID claims as experience emerged. |
REINSURANCE
REINSURANCE | 9 Months Ended |
Sep. 30, 2021 | |
Reinsurance Disclosures [Abstract] | |
REINSURANCE | REINSURANCEThe Company periodically enters into fixed quota-share coinsurance agreements with other companies in the normal course of business. For each of its reinsurance agreements, the Company determines 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. The Company has recorded a deferred profit liability related to reinsurance transactions. The remaining deferred profit liability of $900 million and $1.0 billion as of September 30, 2021 and December 31, 2020, respectively, is included in future policy benefits in the consolidated balance sheet and is being amortized into income over the expected lives of the policies. The Company has also recorded a reinsurance recoverable for reinsurance transactions, which is included in other assets in the consolidated balance sheet and had a remaining balance of $962 million and $1.0 billion as of September 30, 2021 and December 31, 2020, respectively. The spot yen/dollar exchange rate weakened by approximately 7.5% and ceded reserves decreased approximately 7.2% from December 31, 2020 to September 30, 2021. The following table reconciles direct premium income and direct benefits and claims to net amounts after the effect of reinsurance which also includes the elimination of inter-segment amounts associated with affiliated reinsurance. Three Months Ended Nine Months Ended (In millions) 2021 2020 2021 2020 Direct premium income $ 4,426 $ 4,711 $ 13,567 $ 14,236 Ceded to other companies: Ceded Aflac Japan closed blocks (107) (116) (329) (349) Other (19) (22) (54) (69) Assumed from other companies: Retrocession activities 45 49 138 146 Other 27 1 84 5 Net premium income $ 4,372 $ 4,623 $ 13,406 $ 13,969 Direct benefits and claims $ 2,649 $ 3,051 $ 8,112 $ 9,054 Ceded benefits and change in reserves for future benefits: Ceded Aflac Japan closed blocks (94) (103) (288) (314) Eliminations 8 10 24 29 Other (9) (10) (25) (54) Assumed from other companies: Retrocession activities 42 47 126 133 Eliminations (8) (10) (24) (29) Other 21 0 71 3 Benefits and claims, net $ 2,609 $ 2,985 $ 7,996 $ 8,822 These reinsurance transactions are indemnity reinsurance that do not relieve the Company from its obligations to policyholders. In the event that the reinsurer is unable to meet their obligations, the Company remains liable for the reinsured claims. As a part of its capital contingency plan, the Company entered into a committed reinsurance facility agreement on December 1, 2015 in the amount of approximately ¥120 billion of reserves. This reinsurance facility agreement was renewed in 2020 and is effective until December 31, 2021. There are also additional commitment periods of a one-year duration, each of 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 September 30, 2021, the Company has not executed a reinsurance treaty under this committed reinsurance facility. |
NOTES PAYABLE AND LEASE OBLIGAT
NOTES PAYABLE AND LEASE OBLIGATIONS | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
NOTES PAYABLE AND LEASE OBLIGATIONS | NOTES PAYABLE AND LEASE OBLIGATIONSA summary of notes payable and lease obligations follows: (In millions) September 30, 2021 December 31, 2020 3.625% senior notes paid May 2021 $ 0 $ 698 3.625% senior notes due November 2024 748 747 3.25% senior notes due March 2025 448 448 1.125% senior sustainability notes due March 2026 397 0 2.875% senior notes due October 2026 298 298 3.60% senior notes due April 2030 991 990 6.90% senior notes due December 2039 221 221 6.45% senior notes due August 2040 255 254 4.00% senior notes due October 2046 394 394 4.750% senior notes due January 2049 541 541 Yen-denominated senior notes and subordinated debentures: .300% senior notes due September 2025 (principal amount ¥12.4 billion) 110 119 .932% senior notes due January 2027 (principal amount ¥60.0 billion) 534 578 .500% senior notes due December 2029 (principal amount ¥12.6 billion) 112 121 .550% senior notes due March 2030 (principal amount ¥13.3 billion) 118 127 1.159% senior notes due October 2030 (principal amount ¥29.3 billion) 261 282 .633% senior notes due April 2031 (principal amount ¥30.0 billion) 266 0 .843% senior notes due December 2031 (principal amount ¥9.3 billion) 83 90 .750% senior notes due March 2032 (principal amount ¥20.7 billion) 183 198 .844% senior notes due April 2033 (principal amount ¥12.0 billion) 107 0 1.488% senior notes due October 2033 (principal amount ¥15.2 billion) 135 146 .934% senior notes due December 2034 (principal amount ¥9.8 billion) 87 94 .830% senior notes due March 2035 (principal amount ¥10.6 billion) 94 101 1.039% senior notes due April 2036 (principal amount ¥10.0 billion) 88 0 1.750% senior notes due October 2038 (principal amount ¥8.9 billion) 79 85 1.122% senior notes due December 2039 (principal amount ¥6.3 billion) 56 61 1.264% senior notes due April 2041 (principal amount ¥10.0 billion) 89 0 2.108% subordinated debentures due October 2047 (principal amount ¥60.0 billion) 532 575 .963% subordinated bonds due April 2049 (principal amount ¥30.0 billion) 267 289 1.560% senior notes due April 2051 (principal amount ¥20.0 billion) 177 0 Yen-denominated loans: Variable interest rate loan due September 2026 (.41% in 2021 and .43% in 2020, principal amount ¥5.0 billion) 44 48 Variable interest rate loan due September 2029 (.56% in 2021 and .58% in 2020, principal amount ¥25.0 billion) 222 240 Finance lease obligations payable through 2027 13 11 Operating lease obligations payable through 2049 116 143 Total notes payable and lease obligations $ 8,066 $ 7,899 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 April 2021, the Parent Company issued five series of senior notes totaling ¥82.0 billion through a public debt offering under its then existing U.S. shelf registration statement. The first series, which totaled ¥30.0 billion, bears interest at a fixed rate of .633% per annum, payable semi-annually, and will mature in April 2031. The second series, which totaled ¥12.0 billion, bears interest at a fixed rate of .844% per annum, payable semi-annually, and will mature in April 2033. The third series, which totaled ¥10.0 billion, bears interest at a fixed rate of 1.039% per annum, payable semi-annually, and will mature in April 2036. The fourth series, which totaled ¥10.0 billion, bears interest at a fixed rate of 1.264% per annum, payable semi-annually, and will mature in April 2041. The fifth series, which totaled ¥20.0 billion, bears interest at a fixed rate of 1.560% per annum, payable semi-annually, and will mature in April 2051. The notes are redeemable at the Parent Company’s option (i) at any time, 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 or (ii) on or after the date that is six months prior to the stated maturity date of the series, in whole or in part, at a redemption price equal to the aggregate principal amount to be redeemed plus accrued and unpaid interest on the principal amount to be redeemed to, but excluding, the date of redemption. In May 2021, the Parent Company used a portion of the net proceeds from the April 2021 issuance of its various series of senior notes to redeem $700 million of the Parent Company's 3.625% senior notes due June 2023. In March 2021, the Parent Company issued $400 million of senior sustainability notes through a U.S. public debt offering. The notes bear interest at a fixed rate of 1.125% per annum, payable semi-annually, and will mature in March 2026. The Company intends, but is not contractually committed, to allocate an amount at least equivalent to the net proceeds from this issuance exclusively to existing or future investments in, or financing of, assets, businesses or projects that meet the eligibility criteria of the Company's sustainability bond framework described in the offering documentation in connection with such notes. These notes are redeemable at the Parent Company's option in whole at any time or in part from time to time at a redemption price equal to the greater of: (i) the aggregate principal amount of the notes to be redeemed or (ii) the amount equal to the sum of the present values of the remaining scheduled payments for principal of and interest on the notes to be redeemed, not including any portion of the payments of interest accrued as of such redemption date, discounted to such redemption date on a semiannual basis at the yield to maturity for a U.S. Treasury security with a maturity comparable to the remaining term of the notes, plus 10 basis points, plus in each case, accrued and unpaid interest on the principal amount of the notes to be redeemed to, but excluding, such redemption date. A summary of the Company's lines of credit as of September 30, 2021 follows: Borrower(s) Type Term Expiration Date Capacity Amount Outstanding Interest Rate on Borrowed Amount Maturity Period Commitment Fee Business Purpose Aflac Incorporated uncommitted bilateral 364 days December 17, 2021 $100 million $0 million The rate quoted by the bank and agreed upon at the time of borrowing Up to 3 months None General corporate purposes Aflac Incorporated unsecured revolving 5 years March 29, 2024, or the date commitments are terminated pursuant to an event of default ¥100.0 billion ¥0.0 billion A rate per annum equal to (a) Tokyo interbank market rate (TIBOR) plus, the alternative applicable TIBOR margin during the availability period from the closing date to the commitment termination date or (b) the TIBOR rate offered by the agent to major banks in yen for the applicable period plus, the applicable alternative TIBOR margin during the term out period No later than .30% to .50%, depending on the Parent Company's debt ratings as of the date of determination General corporate purposes, including a capital contingency plan for the operations of the Parent Company Aflac Incorporated unsecured revolving 5 years November 18, 2024, or the date commitments are terminated pursuant to an event of default $1.0 billion $0.0 billion A rate per annum equal to, at the Company's option, either, (a) London Interbank Offered Rate (LIBOR) for U.S. dollar denominated borrowings or TIBOR for Japanese yen denominated borrowings, in either case adjusted for certain costs, or (b) a base rate determined by reference to the highest of (1) the federal funds rate plus 1/2 of 1%, (2) the rate of interest for such day announced by Mizuho Bank, Ltd. as its prime rate, or (3) the eurocurrency rate for an interest period of one month plus 1.00%, in each case plus an applicable margin No later than November 18, 2024 .085% to .225%, depending on the Parent Company's debt ratings as of the date of determination General corporate purposes, including a capital contingency plan for the operations of the Parent Company Aflac Incorporated uncommitted bilateral None specified None specified $50 million $0 million A rate per annum equal to, at the Company's option, either (a) a rate determined by reference to LIBOR for the interest period relevant to such borrowing or (b) the base rate determined by reference to the highest of (a) the lender's U.S. dollar short-term commercial loan rate, (b) the federal funds rate plus 1/2 of 1% and (c) one-month LIBOR plus 1%. LIBOR is subject to replacement with Secured Overnight Financing Rate (SOFR) under certain circumstances Up to 3 months None General corporate purposes Aflac (1) uncommitted revolving 364 days November 30, 2021 $250 million $0 million USD three-month LIBOR plus 75 basis points per annum 3 months None General corporate purposes Aflac Incorporated (1) uncommitted revolving 364 days April 4, 2022 ¥50.0 billion ¥0.0 billion Three-month TIBOR plus 70 basis points per annum 3 months None General corporate purposes Aflac Incorporated (1) uncommitted revolving 364 days November 26, 2021 ¥50.0 billion ¥0.0 billion Three-month TIBOR plus 70 basis points per annum 3 months None General corporate purposes Aflac New York (1) uncommitted revolving 364 days April 8, 2022 $25 million $0 million USD three-month LIBOR plus 75 basis points per annum 3 months None General corporate purposes CAIC (1) uncommitted revolving 364 days March 21, 2022 $15 million $0 million USD three-month LIBOR plus 75 basis points per annum 3 months None General corporate purposes (1) Intercompany credit agreement (continued) Borrower(s) Type Term Expiration Date Capacity Amount Outstanding Interest Rate on Borrowed Amount Maturity Period Commitment Fee Business Purpose Tier One Insurance Company (1) uncommitted revolving 364 days March 21, 2022 $0.3 million $0 million USD three-month LIBOR plus 75 basis points per annum 3 months None General corporate purposes AGV Management Services Japan K.K. (1) uncommitted revolving 364 days May 2, 2022 ¥500 million ¥350 million A rate per annum equal to the short-term prime lending rates of banks appearing on the website for the Bank of Japan on the first day of the applicable period No later than None General corporate purposes Hatch Healthcare K.K. (1) uncommitted revolving 364 days January 3, 2022 ¥900 million ¥0 million A rate per annum equal to the short-term prime lending rates of banks appearing on the website for the Bank of Japan on the first day of the applicable period No later than January 3, 2022 None General corporate purposes Hatch Insight K.K. (1) uncommitted revolving 364 days January 3, 2022 ¥600 million ¥0 million A rate per annum equal to the short-term prime lending rates of banks appearing on the website for the Bank of Japan on the first day of the applicable period No later than January 3, 2022 None General corporate purposes Aflac GI Holdings LLC (1) uncommitted revolving 364 days July 18, 2022 $30 million $0 million USD three-month LIBOR plus 75 basis points per annum No later than July 18, 2022 None General corporate purposes (1) Intercompany credit agreement The Company was in compliance with all of the covenants of its notes payable and lines of credit at September 30, 2021. No events of default or defaults occurred during the nine-month period ended September 30, 2021. For additional information, see Notes 4 and 9 of the Notes to the Consolidated Financial Statements in the 2020 Annual Report. |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 9 Months Ended |
Sep. 30, 2021 | |
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 nine-month periods ended September 30. (In thousands of shares) 2021 2020 Common stock - issued: Balance, beginning of period 1,351,018 1,349,309 Exercise of stock options and issuance of restricted shares 1,544 1,546 Balance, end of period 1,352,562 1,350,855 Treasury stock: Balance, beginning of period 658,564 622,516 Purchases of treasury stock: Share repurchase program 32,186 26,108 Other 419 541 Dispositions of treasury stock: Shares issued to AFL Stock Plan (967) (1,584) Exercise of stock options (240) (49) Other (217) (251) Balance, end of period 689,745 647,281 Shares outstanding, end of period 662,817 703,574 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 Nine Months Ended (In thousands) 2021 2020 2021 2020 Anti-dilutive share-based awards 0 592 1 857 Share Repurchase Program During the first nine months of 2021, the Company repurchased 32.2 million shares of its common stock for $1.7 billion as part of its share repurchase program. During the first nine months of 2020, the Company repurchased 26.1 million shares of its common stock for $1.0 billion as part of its share repurchase program. As of September 30, 2021, a remaining balance of 67.0 million shares of the Company's common stock was available for purchase under share repurchase authorizations by its 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 Total Balance at June 30, 2021 $ (1,661) $ 9,992 $ (33) $ (279) $ 8,019 Other comprehensive (99) (251) 0 (5) (355) Amounts reclassified from 0 (10) 2 6 (2) Net current-period other (99) (261) 2 1 (357) Balance at September 30, 2021 $ (1,760) $ 9,731 $ (31) $ (278) $ 7,662 All amounts in the table above are net of tax. Three Months Ended (In millions) Unrealized Foreign Unrealized Unrealized Pension Liability Adjustment Total Balance at June 30, 2020 $ (1,469) $ 8,532 $ (36) $ (277) $ 6,750 Other comprehensive 179 995 1 (5) 1,170 Amounts reclassified from 0 (7) 0 4 (3) Net current-period other 179 988 1 (1) 1,167 Balance at September 30, 2020 $ (1,290) $ 9,520 $ (35) $ (278) $ 7,917 All amounts in the table above are net of tax. Nine Months Ended (In millions) Unrealized Foreign Unrealized Unrealized Pension Total Balance at December 31, 2020 $ (1,109) $ 10,361 $ (34) $ (284) $ 8,934 Other comprehensive (651) (632) 0 (15) (1,298) Amounts reclassified from 0 2 3 21 26 Net current-period other (651) (630) 3 6 (1,272) Balance at September 30, 2021 $ (1,760) $ 9,731 $ (31) $ (278) $ 7,662 All amounts in the table above are net of tax. Nine Months Ended (In millions) Unrealized Foreign Unrealized Unrealized Pension Liability Adjustment Total Balance at December 31, 2019 $ (1,623) $ 8,548 $ (33) $ (277) $ 6,615 Cumulative effect of change 0 848 0 0 848 Balance at January 1, 2020 $ (1,623) $ 9,396 $ (33) $ (277) $ 7,463 Other comprehensive 333 20 (2) (18) 333 Amounts reclassified from 0 104 0 17 121 Net current-period other 333 124 (2) (1) 454 Balance at September 30, 2020 $ (1,290) $ 9,520 $ (35) $ (278) $ 7,917 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 into net earnings 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 $ 13 Net investment gains (losses) (3) Tax (expense) or benefit (1) $ 10 Net of tax Unrealized gains (losses) on derivatives $ (2) Net investment gains (losses) 0 Tax (expense) or benefit (1) $ (2) Net of tax Amortization of defined benefit pension items: Actuarial gains (losses) $ (8) Acquisition and operating expenses (2) Prior service (cost) credit 0 Acquisition and operating expenses (2) 2 Tax (expense) or benefit (1) $ (6) Net of tax Total reclassifications for the period $ 2 Net of tax (1) Based on 21% 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 $ 13 Net investment gains (losses) (6) Tax (expense) or benefit (1) $ 7 Net of tax Amortization of defined benefit pension items: Actuarial gains (losses) $ (7) Acquisition and operating expenses (2) Prior service (cost) credit 0 Acquisition and operating expenses (2) 3 Tax (expense) or benefit (1) $ (4) Net of tax Total reclassifications for the period $ 3 Net of tax (1) Based on 21% tax rate, with a cumulative adjustment to the first six months of 2020 due to the effects of Final and Proposed Regulations released on September 29, 2020 by the U.S. Treasury and Internal Revenue Service and addressing, among other items, the allocation of insurance expenses in the calculation of the foreign tax credit limitation. See Note 10 of the Notes to the Consolidated Financial Statements in the Company's 2020 Annual Report on Form 10-K. (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) Nine 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 $ (2) Net investment gains (losses) 0 Tax (expense) or benefit (1) $ (2) Net of tax Unrealized gains (losses) on derivatives $ (4) Net investment gains (losses) 1 Tax (expense) or benefit (1) $ (3) Net of tax Amortization of defined benefit pension items: Actuarial gains (losses) $ (27) Acquisition and operating expenses (2) Prior service (cost) credit 0 Acquisition and operating expenses (2) 6 Tax (expense) or benefit (1) $ (21) Net of tax Total reclassifications for the period $ (26) Net of tax (1) Based on 21% 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) Nine 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 $ (132) Net investment gains (losses) 28 Tax (expense) or benefit (1) $ (104) Net of tax Amortization of defined benefit pension items: Actuarial gains (losses) $ (22) Acquisition and operating expenses (2) Prior service (cost) credit 0 Acquisition and operating expenses (2) 5 Tax (expense) or benefit (1) $ (17) Net of tax Total reclassifications for the period $ (121) Net of tax (1) Based on 21% 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 | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
SHARE-BASED COMPENSATION | SHARE-BASED COMPENSATION As of September 30, 2021, the Company has outstanding share-based awards under the Aflac Incorporated Long-Term Incentive Plan (the 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 Plan, as amended on February 14, 2017, allows for a maximum number of shares issuable over its term of 75 million shares including 38 million shares that may be awarded in respect of awards other than options or stock appreciation rights. If any awards granted under the 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 Plan. The 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 September 30, 2021, approximately 36.7 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 September 30, 2021, the only performance-based awards issued and outstanding were restricted stock awards and units. Stock options and stock appreciation rights granted under the amended Plan have an exercise price of at least 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 generally vest on a ratable basis over three years, and awards granted prior to the amendment vest on a three years 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 September 30, 2021. Stock Weighted-Average Aggregate Weighted-Average Outstanding 2,317 3.6 $ 49 $ 30.87 Exercisable 2,317 3.6 49 30.87 The Company received cash from the exercise of stock options in the amount of $20 million during the first nine months of 2021, compared with $9 million in the first nine months of 2020. The tax benefit realized as a result of stock option exercises and restricted stock releases was $16 million in the first nine months of 2021, compared with $19 million in the first nine months of 2020. As of September 30, 2021, total compensation cost not yet recognized in the Company's consolidated financial statements related to restricted stock awards and units was $45 million, of which $19 million (1.7 million shares) was related to restricted stock awards and units with a performance-based vesting condition. The Company expects 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 nine-month period ended September 30, 2021. (In thousands of shares) Shares Weighted-Average Restricted stock at December 31, 2020 2,580 $ 48.57 Granted in 2021 1,454 47.70 Canceled in 2021 (102) 48.89 Vested in 2021 (1,317) 45.91 Restricted stock at September 30, 2021 2,615 $ 49.20 In February 2021, the Company granted 474 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. |
BENEFIT PLANS
BENEFIT PLANS | 9 Months Ended |
Sep. 30, 2021 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
BENEFIT PLANS | BENEFIT PLANS The Company has funded defined benefit plans in Japan and the U.S., however the U.S. plan was frozen to new participants effective October 1, 2013. The Company also maintains 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. Effective January 1, 2021, the Company increased this nonelective contribution to 4% of an employee's annual cash compensation. The Company provides 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 5 years; (4) active employees who were age 55 or older and who would meet the 15 years of service requirement within the next 5 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 are included in acquisition and operating expenses in the consolidated statement of earnings, which includes other components of net periodic pension cost and postretirement costs (other than service costs) $4 million and $6 million for the three-month periods ended September 30, 2021 and 2020, respectively and $18 million for the nine-month periods ended September 30, 2021 and 2020. Total net periodic cost includes the following components: Three Months Ended September 30, Pension Benefits Other Japan U.S. Postretirement Benefits (In millions) 2021 2020 2021 2020 2021 2020 Components of net periodic Service cost $ 6 $ 6 $ 7 $ 7 $ 0 $ 0 Interest cost 1 1 8 9 0 0 Expected return on plan assets (2) (2) (11) (9) 0 0 Amortization of net actuarial loss 1 1 7 6 0 0 Net periodic (benefit) cost $ 6 $ 6 $ 11 $ 13 $ 0 $ 0 Nine Months Ended September 30, Pension Benefits Other Japan U.S. Postretirement Benefits (In millions) 2021 2020 2021 2020 2021 2020 Components of net periodic Service cost $ 18 $ 18 $ 21 $ 21 $ 0 $ 0 Interest cost 3 3 24 25 1 1 Expected return on plan assets (6) (6) (31) (27) 0 0 Amortization of net actuarial loss 2 3 23 18 2 1 Net periodic (benefit) cost $ 17 $ 18 $ 37 $ 37 $ 3 $ 2 During the nine months ended September 30, 2021, Aflac Japan contributed approximately $29 million (using the weighted-average yen/dollar exchange rate for the nine-month period ended September 30, 2021) to the Japanese funded defined benefit plan, and Aflac U.S. did not make a contribution to the U.S. funded defined benefit plan. |
COMMITMENTS AND CONTINGENT LIAB
COMMITMENTS AND CONTINGENT LIABILITIES | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENT LIABILITIES | COMMITMENTS AND CONTINGENT LIABILITIES Effective for 2021, the Company entered into an outsourcing agreement with a technology and consulting company to provide mainframe computer operations for Aflac Japan. As of September 30, 2021, the agreement has a remaining term of four years and an aggregate remaining cost of ¥29.3 billion ($262 million using the September 30, 2021 exchange rate). Effective for 2021, the Company entered into an outsourcing agreement with a management consulting and technology services company to provide application maintenance and development services for Aflac Japan. As of September 30, 2021, the agreement has a remaining term of six years and an aggregate remaining cost of ¥16.9 billion ($151 million using the September 30, 2021 exchange rate). Effective for 2021, the Company entered into an enterprise agreement with an information technology and data services company to license software for Aflac Japan. As of September 30, 2021, the agreement has a remaining term of three years and an aggregate remaining cost of ¥1.8 billion ($16 million using the September 30, 2021 exchange rate). The Company is a defendant in various lawsuits considered to be in the normal course of business. Members of the Company's 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, the Company believes the outcome of pending litigation will not have a material adverse effect on its financial position, results of operations, or cash flows. See Note 3 of the Notes to the Consolidated Financial Statements for details on certain investment commitments. Guaranty Fund Assessments The U.S. 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. The Company estimated and recognized the impact of its share of guaranty fund assessments resulting from the liquidation using a discounted rate of 4.25%. The Company 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 in the quarter ended March 31, 2017. The Company paid a majority of these assessments by September 30, 2021. The Company used the cost estimate provided as of the liquidation date by the National Organization of Life and Health Guaranty Associations (NOLHGA) to calculate its estimated assessments and tax credits. Guaranty fund assessments for the nine-month periods ended September 30, 2021 and 2020 were immaterial. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
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 (U.S.) and Japan. The Company's insurance business is marketed and administered through American Family Life Assurance Company of Columbus (Aflac) in the U.S. and through Aflac Life Insurance Japan Ltd. (ALIJ) in Japan. The Company’s operations consist of two reportable business segments: Aflac U.S., which includes Aflac, and Aflac Japan, which includes ALIJ. 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. With the exception of group dental and vision products administered by Argus Dental & Vision, Inc. (Argus) and certain group life insurance products, Aflac U.S. markets and administers group products through Continental American Insurance Company (CAIC), branded as Aflac Group Insurance. The Company's insurance operations in the U.S. and Japan service the two markets for the Company's insurance business. Aflac Japan's revenues, including net gains and losses on its investment portfolio, accounted for 69% and 68% of the Company's total revenues in the nine-month periods ended September 30, 2021 and 2020, respectively. The percentage of the Company's total assets attributable to Aflac Japan was 82% at September 30, 2021, compared with 83% at December 31, 2020. Basis of Presentation The Company prepares its financial statements in accordance with U.S. generally accepted accounting principles (U.S. 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 the Company to make estimates based on currently available information when recording transactions resulting from business operations. The most significant items on the Company's 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 (DAC), 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, the Company believes the amounts provided are reasonable and reflective of the best estimates of management. 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 September 30, 2021 and December 31, 2020, the consolidated statements of earnings and comprehensive income (loss) for the three- and nine-month periods ended September 30, 2021 and 2020, the consolidated statement of shareholders' equity for the three-month periods ended March 31, 2021 and 2020, June 30, 2021 and 2020, and September 30, 2021 and 2020, and the consolidated statement of cash flows for the nine-month periods ended September 30, 2021 and 2020. 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 the Company's annual report on Form 10-K for the year ended December 31, 2020 (2020 Annual Report). COVID-19: The impact of the COVID-19 global pandemic on the Company continues to evolve, and its future effects remain uncertain. The Company took prompt action at the beginning of the pandemic to strengthen its capital and liquidity position, and continues to monitor its investment portfolios to adjust to market conditions, including the continuing recovery and inflation expectations. Both Aflac Japan and Aflac U.S. have accelerated investments in digital initiatives to improve productivity, efficiency and customer service over the long term. |
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. |
Recently Adopted Accounting Pronouncements | |
Description of Accounting Pronouncements Pending Adoption | ASU 2018-12 Financial Services - Insurance: Targeted Improvements to the Accounting for Long-Duration Contracts , as clarified and amended by: ASU 2019-09 Financial Services - Insurance: Effective Date ASU 2020-11 Financial Services - Insurance: Effective Date and Early Application In August 2018, the FASB issued amendments that will significantly change how insurers account for long-duration contracts. The amendments will change existing recognition, measurement, presentation, and disclosure requirements. Issues addressed in the new guidance include: 1) a requirement to review and, if there is a change, update assumptions for the liability for future policy benefits at least annually, and to update the discount rate assumption quarterly, 2) accounting for market risk benefits at fair value, 3) simplified amortization for deferred acquisition costs, and 4) enhanced financial statement presentation and disclosures. In November 2019, the FASB issued an amendment extending the effective date for public business entities that meet the definition of an SEC filer, excluding entities eligible to be small reporting companies as defined by the SEC, by one year. In November 2020, the FASB issued an amendment providing an additional year deferral for all insurance entities due to the impact of COVID-19. The amendments are now effective for the Company for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. Early application of the amendments is permitted. The Company continues to evaluate the impact of adoption and expects that the adoption will have a significant impact on the Company’s financial position, results of operations, and disclosures. The Company anticipates that the requirement to update assumptions for liability for future policy benefits (LFPB) will have a significant impact on its results of operations, systems, processes and controls and that the requirement to update discount rates will have a significant impact on its equity. As part of working toward implementation of the updated standard, the Company has made progress on key accounting policy decisions, including processes to identify insurance policy groupings (cohorts) for LFPB measurement and DAC amortization purposes, applicable discount rates, development of liability cash flow and claim expense assumptions, and DAC amortization methodology. The Company will not early adopt the updated standard and has selected the modified retrospective transition method. Based upon this transition method, the Company currently estimates that the January 1, 2021 transition date (Transition Date) impact from adoption is likely to result in a decrease in accumulated other comprehensive income (AOCI) in a range between $18 billion and $20 billion. This is due to updating the LFPB discount rate assumptions from the rates locked in for reserves held as of the Transition Date to rates determined by reference to the Transition Date market level yields for upper-medium-grade (low credit risk) fixed income instruments (as of December 31, 2020). The variability around the impact of adoption results from the Company making certain estimates, primarily related to the determination of Transition Date market level yields. The Company has advanced and continues to refine the design of its discount rate methodology for both the U.S. and Japan insurance business. The methodology incorporates constructing a discount rate curve separately for discounting cash flows used to calculate the U.S. and Japan LFPB, with each curve intended to be reflective of the currency, tenor and characteristics of the insurance liabilities. Discount rates comprising each curve will be determined by reference to upper-medium grade (low credit risk) fixed-income instrument yields that are intended to reflect the duration characteristics of the corresponding insurance liabilities. The Company intends to use for these yields single-A rated fixed income instruments with credit ratings based on international rating standards. Where only local ratings are available, the Company intends to select the fixed-income instruments with local ratings that are equivalent to a single-A rating based on international rating standards. The methodology will be designed to prioritize observable inputs based on market data available in the local debt markets where the respective policies were issued in the currency in which the policies are denominated. For the discount rates applicable to tenors for which the single-A debt market is not liquid or there is little or no observable market data, the Company will use various estimation techniques consistent with the fair value guidance in ASC 820, which include, but are not limited to: (i) for tenors where there is less observable market data and/or the observable market data is available for similar instruments, estimating tenor-specific single-A credit spreads and applying them to risk-free government rates; (ii) for tenors where there is very limited or no observable single-A or similar market data, interpolation and extrapolation techniques. Discount rates will be updated each reporting period. Long duration insurance contracts issued by the Company will be grouped into annual calendar-year cohorts based on the contract issue date, reportable segment, legal entity and product type. Limited pay contracts will be grouped into separate cohorts from other traditional products in the same manner and will be further separated based on their premium payment structures. Riders will be combined with base policies with similar insurance coverage types and the same contract issue years. In addition to the preliminary policy elections related to cohorts and LFPB discount rates directly impacting Transition Date AOCI, the Company has also advanced the following accounting policies relevant to the post-Transition Date accounting: • Cash flow assumptions underlying insurance liabilities will be evaluated as to whether an update is needed at least annually in the same fiscal quarter each year. To facilitate the review, experience studies will be performed annually in the consistent quarter year-to-year to substantiate assumptions, including mortality, morbidity, and terminations in future periods. • Locked-in discount rates used for the computation of interest accretion on LFPB for policies issued on or after January 1, 2021 will be determined for each issue-year cohort as a single discount rate, calculated as the weighted-average of monthly upper-medium grade (low-credit risk) fixed-income instrument forward curves over the calendar year, determined using the methodology described above and weighted using issued annualized premiums for each issue month. The single discount rate for each issue-year cohort will remain unchanged after the calendar year of issue. Locked-in discount rates on the policies held at Transition Date reflect the locked-in rates in existence immediately before the Transition Date. • For DAC amortization, the Company has made a preliminary election to group insurance policies into cohorts that are consistent with the groupings used in estimating the associated LFPB. DAC will be amortized on a constant-level basis for the grouped contracts over the expected remaining term of the related contracts. For both life and health products issued by Aflac Japan, the constant-level basis used will be units in force, which is a proxy for face amount and insurance in force, respectively. For life products issued by Aflac U.S., the constant level basis used will be face amount of policies in force; for health products issued by Aflac U.S., the constant level basis used will be the number of policies in force. • The Company has made a preliminary entity-wide election to use locked-in claim expense assumptions determined for each issue-year cohort as a percentage of incurred claims; these assumptions would remain unchanged over the term of the insurance policy. The Company has created a governance framework and a plan to support implementation of the updated standard. As part of its implementation plan, the Company has also advanced the modernization of its actuarial technology platform to enhance its modeling, data management, experience study and analytical capabilities, increase the end-to-end automation of key reporting and analytical processes and optimize its control framework. The Company has also put in place internal controls related to the new processes created as part of implementing the updated standard and will continue to refine and maturate these internal controls until the formal implementation in the first quarter of 2023. The Company has recently begun testing its reporting and disclosure capabilities under the new ASU for post-Transition Date accounting periods. The Company currently has no products with market risk benefits. |
BUSINESS SEGMENT INFORMATION (T
BUSINESS SEGMENT INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Reconciliation of Revenue from Segments to Consolidated | Information regarding operations by reportable segment and Corporate and other, follows: Three Months Ended Nine Months Ended (In millions) 2021 2020 2021 2020 Revenues: Aflac Japan: Net earned premiums $ 2,934 $ 3,168 $ 9,045 $ 9,476 Adjusted net investment income (1),(2) 763 663 2,260 1,939 Other income 10 11 32 32 Total adjusted revenue Aflac Japan 3,707 3,842 11,337 11,447 Aflac U.S.: Net earned premiums 1,393 1,407 4,223 4,348 Adjusted net investment income (3) 191 175 557 523 Other income 32 24 90 78 Total adjusted revenue Aflac U.S. 1,616 1,606 4,870 4,949 Corporate and other (4),(5) 72 87 205 292 Total adjusted revenues 5,395 5,535 16,412 16,688 Net investment gains (losses) (1),(2),(3),(4) (158) 130 258 (454) Total revenues $ 5,237 $ 5,665 $ 16,670 $ 16,234 (1) Amortized hedge costs of $20 and $51 for the three-month periods and $55 and $155 for the nine-month periods ended September 30, 2021, and 2020, respectively, related to certain foreign currency exposure management strategies have been reclassified from net investment gains (losses) and reported as a deduction from net investment income when analyzing operations. (2) Net interest cash flows from derivatives associated with certain investment strategies of $(7) and $6 for the three-month periods and $(24) and $5 for the nine-month periods ended September 30, 2021 and 2020, respectively, have been reclassified from net investment gains (losses) and included in adjusted earnings as a component of net investment income when analyzing operations. (3) Net interest cash flows from derivatives associated with certain investment strategies of $1 for both three-month periods and $1 and $2 for the nine-month periods ended September 30, 2021 and 2020, respectively, have been reclassified from net investment gains (losses) and included in adjusted earnings as a component of net investment income. (4) Amortized hedge income of $13 and $22 for the three-month periods and $45 and $78 for the nine-month periods ended September 30, 2021, and 2020, respectively, related to certain foreign currency exposure management strategies has been reclassified from net investment gains (losses) and reported as an increase to net investment income when analyzing operations. (5) The change in value of federal historic rehabilitation and solar investments in partnerships of $5 and $35 for the three- and nine-month periods ended September 30, 2021, respectively, are included as a reduction to net investment income. Offsetting tax credits on these investments of $10 and $35 for the three- and nine-month periods ended September 30, 2021, respectively, have been recorded as an income tax benefit in the consolidated statement of earnings. See Note 3 of the Notes to the Consolidated Financial Statements for additional information on these investments. |
Reconciliation of Adjusted Profit (Loss) from Segments to Consolidated | Three Months Ended Nine Months Ended (In millions) 2021 2020 2021 2020 Pretax earnings: Aflac Japan (1),(2) $ 976 $ 747 $ 2,867 $ 2,442 Aflac U.S. (3) 358 329 1,217 1,082 Corporate and other (4),(5),(6) (41) (39) (144) (69) Pretax adjusted earnings (7) 1,293 1,037 3,940 3,455 Net investment gains (losses) (1),(2),(3),(4),(5) (172) 117 216 (497) Other income (loss) (8) (1) (66) (16) Total earnings before income taxes $ 1,113 $ 1,153 $ 4,090 $ 2,942 Income taxes applicable to pretax adjusted earnings $ 262 $ 43 $ 771 $ 659 Effect of foreign currency translation on after-tax (14) 3 (8) 17 (1) Amortized hedge costs of $20 and $51 for the three-month periods and $55 and $155 for the nine-month periods ended September 30, 2021, and 2020, respectively, related to certain foreign currency exposure management strategies have been reclassified from net investment gains (losses) and reported as a deduction from net investment income when analyzing operations. (2) Net interest cash flows from derivatives associated with certain investment strategies of $(7) and $6 for the three-month periods and $(24) and $5 for the nine-month periods ended September 30, 2021 and 2020, respectively, have been reclassified from net investment gains (losses) and included in adjusted earnings as a component of net investment income when analyzing operations. (3) Net interest cash flows from derivatives associated with certain investment strategies of $1 for both three-month periods and $1 and $2 for the nine-month periods ended September 30, 2021 and 2020, respectively, have been reclassified from net investment gains (losses) and included in adjusted earnings as a component of net investment income. (4) Amortized hedge income of $13 and $22 for the three-month periods and $45 and $78 for the nine-month periods ended September 30, 2021, and 2020, respectively, related to certain foreign currency exposure management strategies has been reclassified from net investment gains (losses) and reported as an increase in net investment income when analyzing operations. (5) A gain of $14 and $13 for the three-month periods and $41 and $43 for the nine-month periods ended September 30, 2021, and 2020, respectively, related to the interest rate component of the change in fair value of foreign currency swaps on notes payable has been reclassified from net investment gains (losses) and included in adjusted earnings when analyzing operations. (6) The change in value of federal historic rehabilitation and solar investments in partnerships of $5 and $35 for the three- and nine-month periods ended September 30, 2021, respectively, is included as a reduction to net investment income. Offsetting tax credits on these investments of $10 and $35 for the three- and nine-month periods ended September 30, 2021, respectively, have been recorded as an income tax benefit in the consolidated statement of earnings. See Note 3 of the Notes to the Consolidated Financial Statements for additional information on these investments. (7) Includes $40 and $44 for the three-month periods and $130 and $122 for the nine-month periods ended September 30, 2021, and 2020, respectively, of interest expense on debt. |
Reconciliation of Assets from Segment to Consolidated | Assets were as follows: (In millions) September 30, December 31, Assets: Aflac Japan $ 131,651 $ 137,271 Aflac U.S. 23,304 22,864 Corporate and other 5,642 4,951 Total assets $ 160,597 $ 165,086 |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Available-for-Sale Debt Securities | The amortized cost for the Company's investments in fixed maturity securities, the cost for equity securities and the fair values of these investments are shown in the following tables. September 30, 2021 (In millions) Amortized Allowance for Credit Losses Gross Gross Fair Securities available for sale, carried at fair Fixed maturity securities: Yen-denominated: Japan government and agencies $ 31,549 $ 0 $ 3,574 $ 62 $ 35,061 Municipalities 1,224 0 323 5 1,542 Mortgage- and asset-backed securities 310 0 21 1 330 Public utilities 4,584 0 930 2 5,512 Sovereign and supranational 781 0 81 0 862 Banks/financial institutions 7,149 0 834 66 7,917 Other corporate 7,377 0 1,575 22 8,930 Total yen-denominated 52,974 0 7,338 158 60,154 U.S. dollar-denominated: U.S. government and agencies 155 0 10 0 165 Municipalities 1,217 0 179 1 1,395 Mortgage- and asset-backed securities 932 0 30 0 962 Public utilities 3,887 0 920 4 4,803 Sovereign and supranational 225 0 59 4 280 Banks/financial institutions 3,081 0 745 1 3,825 Other corporate 24,757 0 4,448 67 29,138 Total U.S. dollar-denominated 34,254 0 6,391 77 40,568 Total securities available for sale $ 87,228 $ 0 $ 13,729 $ 235 $ 100,722 December 31, 2020 (In millions) Amortized Allowance for Credit Losses Gross Gross Fair Securities available for sale, carried at fair Fixed maturity securities: Yen-denominated: Japan government and agencies $ 32,959 $ 0 $ 4,182 $ 52 $ 37,089 Municipalities 1,324 0 374 5 1,693 Mortgage- and asset-backed securities 342 0 27 1 368 Public utilities 4,777 0 1,096 1 5,872 Sovereign and supranational 981 0 108 0 1,089 Banks/financial institutions 7,552 0 886 102 8,336 Other corporate 8,114 0 1,747 37 9,824 Total yen-denominated 56,049 0 8,420 198 64,271 U.S. dollar-denominated: U.S. government and agencies 245 0 16 0 261 Municipalities 1,154 0 173 2 1,325 Mortgage- and asset-backed securities 667 0 8 5 670 Public utilities 4,013 0 947 15 4,945 Sovereign and supranational 232 0 64 3 293 Banks/financial institutions 2,973 0 758 7 3,724 Other corporate 26,297 38 4,385 251 30,393 Total U.S. dollar-denominated 35,581 38 6,351 283 41,611 Total securities available for sale $ 91,630 $ 38 $ 14,771 $ 481 $ 105,882 |
Held-to-maturity Securities | September 30, 2021 (In millions) Amortized Allowance for Credit Losses Net Carrying Amount Gross Gross Fair Securities held to maturity, carried at Fixed maturity securities: Yen-denominated: Japan government and agencies $ 21,676 $ 3 $ 21,673 $ 4,868 $ 0 $ 26,541 Municipalities 346 0 346 107 0 453 Public utilities 45 1 44 13 0 57 Sovereign and supranational 533 5 528 139 0 667 Other corporate 22 0 22 8 0 30 Total yen-denominated 22,622 9 22,613 5,135 0 27,748 Total securities held to maturity $ 22,622 $ 9 $ 22,613 $ 5,135 $ 0 $ 27,748 December 31, 2020 (In millions) Amortized Allowance for Credit Losses Net Carrying Amount Gross Gross Fair Securities held to maturity, carried at Fixed maturity securities: Yen-denominated: Japan government and agencies $ 23,448 $ 3 $ 23,445 $ 5,625 $ 0 $ 29,070 Municipalities 377 0 377 122 0 499 Public utilities 48 1 47 14 0 61 Sovereign and supranational 577 6 571 165 0 736 Other corporate 24 0 24 9 0 33 Total yen-denominated 24,474 10 24,464 5,935 0 30,399 Total securities held to maturity $ 24,474 $ 10 $ 24,464 $ 5,935 $ 0 $ 30,399 |
Equity securities, FV-NI | (In millions) September 30, 2021 December 31, 2020 Equity securities, carried at fair value through net earnings: Fair Value Fair Value Equity securities: Yen-denominated $ 753 $ 680 U.S. dollar-denominated 667 603 Other currencies 41 0 Total equity securities $ 1,461 $ 1,283 |
Investments Classified by Contractual Maturity Date | The contractual and economic maturities of the Company's investments in fixed maturity securities at September 30, 2021, were as follows: (In millions) Amortized (1) Fair Available for sale: Due in one year or less $ 914 $ 930 Due after one year through five years 8,302 8,909 Due after five years through 10 years 13,291 15,565 Due after 10 years 63,479 74,026 Mortgage- and asset-backed securities 1,242 1,292 Total fixed maturity securities available for sale $ 87,228 $ 100,722 Held to maturity: Due in one year or less $ 0 $ 0 Due after one year through five years 45 49 Due after five years through 10 years 8,753 10,207 Due after 10 years 13,815 17,492 Mortgage- and asset-backed securities 0 0 Total fixed maturity securities held to maturity $ 22,613 $ 27,748 |
Investment Exposures Exceeding Ten Percent Shareholders Equity | Investment exposures that individually exceeded 10% of shareholders' equity were as follows: September 30, 2021 December 31, 2020 (In millions) Credit Amortized Fair Credit Amortized Fair Japan National Government (1) A+ $51,953 $60,106 A+ $55,153 $64,657 (1) Japan Government Bonds (JGBs) or JGB-backed securities |
Gain (Loss) on Investments | Information regarding pretax net gains and losses from investments is as follows: Three Months Ended Nine Months Ended (In millions) 2021 2020 2021 2020 Net investment gains (losses): Sales and redemptions: Fixed maturity securities available for sale: Gross gains from sales $ 24 $ 7 $ 40 $ 28 Gross losses from sales (36) 0 (39) (46) Foreign currency gains (losses) on sales and redemptions (2) (5) (21) (39) Total sales and redemptions (14) 2 (20) (57) Equity securities (119) 12 (17) (106) Credit losses: Fixed maturity securities available for sale 27 0 38 (75) Fixed maturity securities held to maturity 0 0 1 1 Commercial mortgage and other loans (29) 78 15 (86) Impairment losses 0 0 (20) 0 Loan commitments 3 64 3 (17) Reinsurance recoverables and other 0 0 (2) (2) Total credit losses 1 142 35 (179) Derivatives and other: Derivative gains (losses) (174) 138 (557) 173 Foreign currency gains (losses) 135 (186) 783 (356) Total derivatives and other (39) (48) 226 (183) Total net investment gains (losses) $ (171) $ 108 $ 224 $ (525) |
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 fixed maturity securities was as follows: (In millions) September 30, 2021 December 31, Unrealized gains (losses) on securities available for sale $ 13,494 $ 14,290 Deferred income taxes (3,763) (3,929) Shareholders’ equity, unrealized gains (losses) on fixed maturity securities $ 9,731 $ 10,361 |
Investments Gross Unrealized Loss Aging | The following tables show the fair values and gross unrealized losses of the Company's available-for-sale investments for the periods ended September 30, 2021 and December 31, 2020, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position. September 30, 2021 Total Less than 12 months 12 months or longer (In millions) Fair Unrealized Fair Unrealized Fair Unrealized Fixed maturity securities available Japan government and Yen-denominated $ 2,980 $ 62 $ 342 $ 2 $ 2,638 $ 60 Municipalities: U.S. dollar-denominated 56 1 56 1 0 0 Yen-denominated 168 5 30 0 138 5 Mortgage- and asset- Yen-denominated 34 1 0 0 34 1 Public utilities: U.S. dollar-denominated 195 4 108 2 87 2 Yen-denominated 242 2 182 1 60 1 Sovereign and supranational: U.S. dollar-denominated 6 4 6 1 0 3 Banks/financial institutions: U.S. dollar-denominated 152 1 146 1 6 0 Yen-denominated 1,824 66 735 5 1,089 61 Other corporate: U.S. dollar-denominated 1,731 67 898 17 833 50 Yen-denominated 558 22 106 1 452 21 Total $ 7,946 $ 235 $ 2,609 $ 31 $ 5,337 $ 204 December 31, 2020 Total Less than 12 months 12 months or longer (In millions) Fair Unrealized Fair Unrealized Fair Unrealized Fixed maturity securities available Japan government and Yen-denominated $ 2,604 $ 52 $ 2,604 $ 52 $ 0 $ 0 Municipalities: U.S. dollar-denominated 94 2 94 2 0 0 Yen-denominated 183 5 169 4 14 1 Mortgage- and asset- U.S. dollar-denominated 360 5 360 5 0 0 Yen-denominated 37 1 37 1 0 0 Public utilities: U.S. dollar-denominated 326 15 208 7 118 8 Yen-denominated 135 1 135 1 0 0 Sovereign and supranational: U.S. dollar-denominated 39 3 39 3 0 0 Banks/financial institutions: U.S. dollar-denominated 82 7 44 1 38 6 Yen-denominated 1,809 102 765 36 1,044 66 Other corporate: U.S. dollar-denominated 4,499 251 2,157 59 2,342 192 Yen-denominated 613 37 290 13 323 24 Total $ 10,781 $ 481 $ 6,902 $ 184 $ 3,879 $ 297 |
Composition of the Carrying Value for Commercial Mortgage and Other Loans by Property Type | The following table reflects the composition of the carrying value for commercial mortgage and other loans by property type as of the periods presented. (In millions) September 30, 2021 December 31, 2020 Amortized Cost % of Total Amortized Cost % of Total Commercial Mortgage and other loans: Transitional real estate loans: Office $ 1,944 16.8 % $ 2,115 19.7 % Retail 140 1.2 125 1.2 Apartments/Multi-Family 1,666 14.4 1,782 16.6 Industrial 46 0.4 85 .8 Hospitality 1,075 9.3 1,106 10.3 Other 340 3.0 81 .7 Total transitional real estate loans 5,211 45.1 5,294 49.3 Commercial mortgage loans: Office 395 3.4 401 3.7 Retail 334 3.0 340 3.2 Apartments/Multi-Family 640 5.5 588 5.5 Industrial 478 4.1 391 3.6 Other 14 0.1 0 0.0 Total commercial mortgage loans 1,861 16.1 1,720 16.0 Middle market loans 4,481 38.8 3,720 34.7 Total commercial mortgage and other loans $ 11,553 100.0 % $ 10,734 100.0 % Allowance for credit losses (165) (180) Total net commercial mortgage and other loans $ 11,388 $ 10,554 |
Allowance for Loan Losses by Portfolio Segment | The following table presents the roll forward of the allowance for credit losses by portfolio segment. (in millions) Transitional Real Estate Loans Commercial Mortgage Loans Middle Market Loans Held to Maturity Securities Available for Sale Securities Reinsurance Recoverables Three Months Ended September 30, 2021: Balance at June 30, 2021 $ (41) $ (22) $ (76) $ (8) $ (26) $ (13) (Addition to) release of allowance for credit (18) 5 (13) (1) 0 0 Write-offs, net of recoveries 0 0 0 0 26 0 Balance at September 30, 2021 $ (59) $ (17) $ (89) $ (9) $ 0 $ (13) Three Months Ended September 30, 2020: Balance at June 30, 2020 $ (66) $ (42) $ (134) $ (9) $ (38) $ (11) (Addition to) release of allowance for credit 13 14 59 0 (1) 0 Write-offs, net of recoveries 0 0 (9) 0 1 0 Balance at September 30, 2020 $ (53) $ (28) $ (84) $ (9) $ (38) $ (11) Nine Months Ended September 30, 2021: Balance at December 31, 2020 $ (63) $ (32) $ (85) $ (10) $ (38) $ (12) (Addition to) release of allowance for credit 4 15 (4) 1 26 (1) Write-offs, net of recoveries 0 0 0 0 12 0 Balance at September 30, 2021 $ (59) $ (17) $ (89) $ (9) $ 0 $ (13) Nine Months Ended September 30, 2020: Balance at December 31, 2019 (1) $ (22) $ (3) $ (20) $ 0 $ 0 $ 0 Transition impact to retained earnings (2) (8) (33) (10) 0 (11) (Addition to) release of allowance for credit (29) (17) (31) 1 (75) 0 Write-offs, net of recoveries 0 0 0 0 37 0 Balance at September 30, 2020 $ (53) $ (28) $ (84) $ (9) $ (38) $ (11) |
Other Investments | The table below reflects the composition of the carrying value for other investments as of the periods presented. (In millions) September 30, 2021 December 31, 2020 Other investments: Policy loans $ 241 $ 260 Short-term investments (1) 1,833 1,139 Limited partnerships 1,519 1,004 Other 19 26 Total other investments $ 3,612 $ 2,429 |
Securities Lending Transactions Accounted for as Secured Borrowings | Details of collateral by loaned security type and remaining maturity of the agreements were as follows: Securities Lending Transactions Accounted for as Secured Borrowings Remaining Contractual Maturity of the Agreements September 30, 2021 December 31, 2020 (In millions) Overnight (1) Up to 30 Total Overnight (1) Up to 30 Total Securities lending transactions: Fixed maturity securities: Japan government and $ 0 $ 1,587 $ 1,587 $ 0 $ 0 $ 0 Public utilities 27 0 27 57 0 57 Sovereign and supranational 2 0 2 3 0 3 Banks/financial institutions 81 0 81 63 0 63 Other corporate 1,152 0 1,152 841 0 841 Total borrowings $ 1,262 $ 1,587 $ 2,849 $ 964 $ 0 $ 964 Gross amount of recognized liabilities for securities $ 2,849 $ 964 (1) The related loaned security, under the Company's U.S. securities lending program, can be returned to the Company at the transferee's 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 September 30, 2021 December 31, 2020 (In millions) Amortized (1) Fair Amortized Cost (1) Fair Assets: Fixed maturity securities, available for sale $ 3,228 $ 4,437 $ 3,487 $ 4,596 Commercial mortgage and other loans 9,543 9,723 8,964 9,040 Other investments (2) 1,272 1,272 826 826 Other assets (3) 99 99 133 133 Total assets of consolidated VIEs $ 14,142 $ 15,531 $ 13,410 $ 14,595 Liabilities: Other liabilities (3) $ 356 $ 356 $ 231 $ 231 Total liabilities of consolidated VIEs $ 356 $ 356 $ 231 $ 231 (1) Net of allowance for credit losses (2) Consists entirely of alternative investments in limited partnerships (3) Consists entirely of derivatives |
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 the Company's investment in VIEs not consolidated are reported. Investments in Variable Interest Entities Not Consolidated September 30, 2021 December 31, 2020 (In millions) Amortized Fair Amortized Fair Assets: Fixed maturity securities, available for sale $ 4,990 $ 6,119 $ 5,477 $ 6,767 Other investments (1) 247 247 178 178 Total investments in VIEs not consolidated $ 5,237 $ 6,366 $ 5,655 $ 6,945 (1) Consists entirely of alternative investments in limited partnerships |
Transitional real estate loans | |
Financing Receivable Credit Quality Indicators | Transitional Real Estate Loans (In millions) 2021 2020 2019 2018 2017 Total Loan-to-Value Ratio: 0%-59.99% $ 449 $ 55 $ 439 $ 353 $ 77 $ 1,373 60%-69.99% 417 136 831 543 182 2,109 70%-79.99% 569 184 443 323 182 1,701 80% or greater 0 28 0 0 0 28 Total $ 1,435 $ 403 $ 1,713 $ 1,219 $ 441 $ 5,211 |
Commercial mortgage loans | |
Financing Receivable Credit Quality Indicators | Commercial Mortgage Loans (In millions) 2021 2020 2019 2018 2017 Prior Total Weighted-Average DSCR Loan-to-Value Ratio: 0%-59.99% $ 174 $ 47 $ 559 $ 168 $ 68 $ 561 $ 1,577 2.51 60%-69.99% 34 0 87 0 0 138 259 1.97 70%-79.99% 0 0 0 0 0 25 25 1.67 Total 208 47 646 168 68 724 1,861 2.42 Weighted Average DSCR 2.49 1.94 2.55 2.32 2.78 2.30 |
Middle market loans | |
Financing Receivable Credit Quality Indicators | Middle Market Loans (In millions) 2021 2020 2019 2018 2017 Prior Revolving Loans Total Credit Ratings: BBB $ 54 $ 78 $ 51 $ 39 $ 10 $ 3 $ 68 $ 303 BB 346 347 283 163 106 27 221 1,493 B 357 493 635 323 154 121 170 2,253 CCC 0 19 64 81 79 49 87 379 CC 0 0 0 14 26 0 5 45 C and lower 0 8 0 0 0 0 0 8 Total $ 757 $ 945 $ 1,033 $ 620 $ 375 $ 200 $ 551 $ 4,481 |
DERIVATIVE INSTRUMENTS (Tables)
DERIVATIVE INSTRUMENTS (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | September 30, 2021 December 31, 2020 (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 - VIE $ 18 $ 0 $ 2 $ 18 $ 0 $ 1 Total cash flow hedges 18 0 2 18 0 1 Fair value hedges: Foreign currency forwards 62 0 3 64 2 0 Foreign currency options 8,410 1 0 8,865 0 0 Total fair value hedges 8,472 1 3 8,929 2 0 Net investment hedge: Foreign currency forwards 4,996 240 0 5,010 14 84 Foreign currency options 1,954 0 0 2,027 1 0 Total net investment hedge 6,950 240 0 7,037 15 84 Non-qualifying strategies: Foreign currency swaps 2,250 52 22 2,250 47 81 Foreign currency swaps - VIE 3,141 99 354 2,857 133 230 Foreign currency forwards 14,153 353 872 26,528 386 301 Foreign currency options 3,165 0 0 11,037 0 0 Interest rate swaps 3,500 0 16 0 0 0 Forward bond purchase commitment - VIE 45 0 1 0 0 0 Total non-qualifying strategies 26,254 504 1,265 42,672 566 612 Total derivatives $ 41,694 $ 745 $ 1,270 $ 58,656 $ 583 $ 697 |
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) (1) Gains (Losses) (2) Gains (Losses) (2) Net Investment Gains (Losses) Recognized for Fair Value Hedge Three Months Ended September 30, 2021: Foreign currency Fixed maturity securities $ (1) $ 0 $ (1) $ 1 $ 0 Foreign currency options Fixed maturity securities (5) (5) 0 0 0 Total gains (losses) $ (6) $ (5) $ (1) $ 1 $ 0 Nine Months Ended September 30, 2021: Foreign currency forwards Fixed maturity securities $ (5) $ 0 $ (5) $ 5 $ 0 Foreign currency options Fixed maturity securities (16) (15) (1) 4 3 Total gains (losses) $ (21) $ (15) $ (6) $ 9 $ 3 Three Months Ended September 30, 2020: Foreign currency forwards Fixed maturity securities $ 1 $ 0 $ 1 $ (1) $ 0 Foreign currency options Fixed maturity securities (2) (2) 0 0 0 Total gains (losses) $ (1) $ (2) $ 1 $ (1) $ 0 Nine Months Ended September 30, 2020: Foreign currency forwards Fixed maturity securities $ (15) $ (8) $ (7) $ 8 $ 1 Foreign currency options Fixed maturity securities (4) (3) (1) 1 0 Total gains (losses) $ (19) $ (11) $ (8) $ 9 $ 1 (1) Gains (losses) excluded from effectiveness testing includes the forward point on foreign currency forwards and time value change on foreign currency options which are reported in the consolidated statement of earnings as net investment gains (losses). It also includes the change in the fair value of the interest rate swaptions related to the time value of the swaptions which is recognized as a component of other comprehensive income (loss). (2) Gains and losses on foreign currency forwards and options and related hedged items are reported in the consolidated statement of earnings as net investment gains (losses). For interest rate swaptions and related hedged items, gains and losses included in the hedge assessment, premium amortization and time value amortization while the hedge items are still outstanding are reported within net investment income. The time value gains and losses for interest rate swaptions when the related hedged items are redeemed are reported in net investment gains and losses consistent with the impact of the hedged item. For the three-month and nine-month periods ended September 30, 2021 and 2020, gains and losses included in the hedge assessment on interest rate swaptions and related hedged items were immaterial. |
Schedule of Interest Rate Fair Value Hedges Hedged Items | The following table shows the carrying amounts of assets designated and qualifying as hedged items in fair value hedges of interest rate risk and the related cumulative hedge adjustment included in the carrying amount. (In millions) Carrying Amount of the Hedged Assets/(Liabilities) (1) Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of Hedged Assets/(Liabilities) September 30, 2021 December 31, 2020 September 30, 2021 December 31, 2020 Fixed maturity securities $ 3,261 $ 4,331 $ 216 $ 237 (1) The balance includes hedging adjustment on discontinued hedging relationships of $216 in 2021 and $237 in 2020. |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | The following table summarizes the impact to earnings and other comprehensive income (loss) from all derivatives and hedging instruments. Three Months Ended September 30, 2021 2020 (In millions) Net Investment Income (1) Net Investment Other (2) Net Investment Income (1) Net Investment Other (2) Qualifying hedges: Cash flow hedges: Foreign currency swaps - VIE $ 0 $ (1) $ 1 $ 0 $ 0 $ 2 Total cash flow hedges 0 (1) (3) 1 0 0 (3) 2 Fair value hedges: Foreign currency forwards (3) 0 0 Foreign currency options (3) (5) (2) Interest rate swaptions (3) (1) (1) 1 0 0 0 Total fair value hedges (1) (6) 1 0 (2) 0 Net investment hedge: Non-derivative hedging 0 41 0 (51) Foreign currency forwards (42) 55 (16) (91) Foreign currency options (1) 0 (2) 0 Total net investment hedge (43) 96 (18) (142) Non-qualifying strategies: Foreign currency swaps 6 (27) Foreign currency swaps - VIE (36) 40 Foreign currency forwards (84) 139 Foreign currency options 0 4 Interest rate swaps (9) 0 Forward bond purchase (1) 2 Total non- qualifying strategies (124) 158 Total $ (1) $ (174) $ 98 $ 0 $ 138 $ (140) (1) Interest expense/income on cash flow hedges are recorded in net investment income. For interest rate swaptions classified as fair value hedges, the change in the time value of the swaptions is recognized in other comprehensive income (loss) and amortized into net investment income over its legal term. If the swaption is early terminated but the hedge item is still outstanding, the amortization of disposal amount of the swaptions is recorded in net investment income over the remaining life of the hedged items. (2) Gains and losses on cash flow hedges and the change in the fair value of interest rate swaptions related to the time value of the swaptions in fair value hedges are recorded as unrealized gains (losses). Gains and losses on net investment hedges related to changes in foreign currency spot rates are recorded in the unrealized foreign currency translation gains (losses) line in the consolidated statement of comprehensive income (loss). (3) Impact of cash flow hedges reported as net investment gains (losses) includes $1 of losses reclassified from accumulated other comprehensive income (loss) into earnings during the three-month period ended September 30, 2021. In addition, $1 of losses and an immaterial amount were reclassified from accumulated other comprehensive income (loss) into earnings during the three-month periods ended September 30, 2021 and 2020, respectively, related to fair value hedges excluded component . Impact shown net of effect of hedged items (see Fair Value Hedges section of this Note 4 for further detail). Nine Months Ended September 30, 2021 2020 (In millions) Net Investment Income (1) Net Investment Other (2) Net Investment Income (1) Net Investment Other (2) Qualifying hedges: Cash flow hedges: Foreign currency swaps - VIE $ 0 $ (3) $ 2 $ (1) $ 0 $ (4) Total cash flow hedges 0 (3) (3) 2 (1) 0 (3) (4) Fair value hedges: Foreign currency forwards (3) 0 (7) Foreign currency options (3) (12) (3) Interest rate swaptions (3) (1) (1) 1 (1) 0 1 Total fair value hedges (1) (13) 1 (1) (10) 1 Net investment hedge: Non-derivative hedging 0 237 0 (72) Foreign currency forwards 7 396 136 (166) Foreign currency options (4) 0 (3) 0 Total net investment hedge 3 633 133 (238) Non-qualifying strategies: Foreign currency swaps 105 54 Foreign currency swaps - VIE (115) (185) Foreign currency forwards (527) 133 Foreign currency options 1 (1) Interest rate swaps (6) 49 Forward bond purchase (2) 0 Total non-qualifying strategies (544) 50 Total $ (1) $ (557) $ 636 $ (2) $ 173 $ (241) (1) Interest expense/income on cash flow hedges are recorded in net investment income. For interest rate swaptions classified as fair value hedges, the change in the time value of the swaptions is recognized in other comprehensive income (loss) and amortized into net investment income over its legal term. If the swaption is early terminated but the hedge item is still outstanding, the amortization of disposal amount of the swaptions is recorded in net investment income over the remaining life of the hedged items. (2) Gains and losses on cash flow hedges and the change in the fair value of interest rate swaptions related to the time value of the swaptions in fair value hedges are recorded as unrealized gains (losses). Gains and losses on net investment hedges related to changes in foreign currency spot rates are recorded in the unrealized foreign currency translation gains (losses) line in the consolidated statement of comprehensive income (loss). (3) Impact of cash flow hedges reported as net investment gains (losses) includes $3 of losses reclassified from accumulated other comprehensive income (loss) into earnings during the nine-month period ended September 30, 2021. In addition, $1 of losses and an immaterial amount were reclassified from accumulated other comprehensive income (loss) into earnings during the nine-month periods ended September 30, 2021 and 2020, respectively, related to fair value hedges excluded component. Impact shown net of effect of hedged items (see Fair Value Hedges section of this Note 4 for further detail). |
Offsetting Assets | Offsetting of Financial Assets and Derivative Assets September 30, 2021 Gross Amounts Not Offset (In millions) Gross Amount of Recognized Assets Gross Amount Net Amount of Assets Presented Financial Instruments Securities Cash Collateral Received Net Amount Derivative Derivative assets subject to a master netting agreement or offsetting arrangement OTC - bilateral $ 646 $ 0 $ 646 $ (375) $ (21) $ (249) $ 1 Total derivative 646 0 646 (375) (21) (249) 1 Derivative assets not subject to a master netting agreement or offsetting arrangement OTC - bilateral 99 99 99 Total derivative 99 99 99 Total derivative 745 0 745 (375) (21) (249) 100 Securities lending 2,827 0 2,827 0 0 (2,827) 0 Total $ 3,572 $ 0 $ 3,572 $ (375) $ (21) $ (3,076) $ 100 December 31, 2020 Gross Amounts Not Offset (In millions) Gross Amount of Recognized Assets Gross Amount Net Amount of Assets Presented Financial Instruments Securities Cash Collateral Received Net Amount Derivative Derivative assets subject to a master netting agreement or offsetting arrangement OTC - bilateral $ 450 $ 0 $ 450 $ (295) $ (73) $ (76) $ 6 Total derivative 450 0 450 (295) (73) (76) 6 Derivative assets not subject to a master netting agreement or offsetting arrangement OTC - bilateral 133 133 133 Total derivative 133 133 133 Total derivative 583 0 583 (295) (73) (76) 139 Securities lending 940 0 940 0 0 (940) 0 Total $ 1,523 $ 0 $ 1,523 $ (295) $ (73) $ (1,016) $ 139 |
Offsetting Liabilities | Offsetting of Financial Liabilities and Derivative Liabilities September 30, 2021 Gross Amounts Not Offset (In millions) Gross Amount of Recognized Liabilities Gross Amount Net Amount of Liabilities Presented Financial Instruments Securities Cash Collateral Pledged Net Amount Derivative Derivative liabilities subject to a master netting agreement or offsetting arrangement OTC - bilateral $ 898 $ 0 $ 898 $ (375) $ (491) $ (19) $ 13 OTC - cleared 16 0 16 0 0 (15) 1 Total derivative 914 0 914 (375) (491) (34) 14 Derivative liabilities not subject to a master netting agreement or offsetting arrangement OTC - bilateral 356 356 356 Total derivative 356 356 356 Total derivative 1,270 0 1,270 (375) (491) (34) 370 Securities lending 2,849 0 2,849 (2,827) 0 0 22 Total $ 4,119 $ 0 $ 4,119 $ (3,202) $ (491) $ (34) $ 392 December 31, 2020 Gross Amounts Not Offset (In millions) Gross Amount of Recognized Liabilities Gross Amount Net Amount of Liabilities Presented Financial Instruments Securities Cash Collateral Pledged Net Amount Derivative Derivative liabilities subject to a master netting agreement or offsetting arrangement OTC - bilateral $ 466 $ 0 $ 466 $ (295) $ (43) $ (69) $ 59 Total derivative 466 0 466 (295) (43) (69) 59 Derivative liabilities not subject to a master netting agreement or offsetting arrangement OTC - bilateral 231 231 231 Total derivative 231 231 231 Total derivative 697 0 697 (295) (43) (69) 290 Securities lending 964 0 964 (940) 0 0 24 Total $ 1,661 $ 0 $ 1,661 $ (1,235) $ (43) $ (69) $ 314 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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. September 30, 2021 (In millions) Quoted Prices in Significant Significant Total Assets: Securities available for sale, carried at Fixed maturity securities: Government and agencies $ 33,903 $ 1,323 $ 0 $ 35,226 Municipalities 0 2,937 0 2,937 Mortgage- and asset-backed securities 0 1,042 250 1,292 Public utilities 0 9,792 523 10,315 Sovereign and supranational 0 1,097 45 1,142 Banks/financial institutions 0 11,696 46 11,742 Other corporate 0 37,762 306 38,068 Total fixed maturity securities 33,903 65,649 1,170 100,722 Equity securities 1,210 90 161 1,461 Other investments 1,833 0 0 1,833 Cash and cash equivalents 6,208 0 0 6,208 Other assets: Foreign currency swaps 0 52 99 151 Foreign currency forwards 0 593 0 593 Foreign currency options 0 1 0 1 Total other assets 0 646 99 745 Total assets $ 43,154 $ 66,385 $ 1,430 $ 110,969 Liabilities: Other liabilities: Foreign currency swaps $ 0 $ 22 $ 356 $ 378 Foreign currency forwards 0 875 0 875 Interest rate swaps 0 16 0 16 Forward bond purchase commitment 0 1 0 1 Total liabilities $ 0 $ 914 $ 356 $ 1,270 December 31, 2020 (In millions) Quoted Prices in Significant Significant Total Assets: Securities available for sale, carried at Fixed maturity securities: Government and agencies $ 36,032 $ 1,318 $ 0 $ 37,350 Municipalities 0 3,018 0 3,018 Mortgage- and asset-backed securities 0 814 224 1,038 Public utilities 0 10,395 422 10,817 Sovereign and supranational 0 1,334 48 1,382 Banks/financial institutions 0 12,036 24 12,060 Other corporate 0 39,918 299 40,217 Total fixed maturity securities 36,032 68,833 1,017 105,882 Equity securities 1,095 86 102 1,283 Other investments 1,139 0 0 1,139 Cash and cash equivalents 5,141 0 0 5,141 Other assets: Foreign currency swaps 0 47 133 180 Foreign currency forwards 0 402 0 402 Foreign currency options 0 1 0 1 Total other assets 0 450 133 583 Total assets $ 43,407 $ 69,369 $ 1,252 $ 114,028 Liabilities: Other liabilities: Foreign currency swaps $ 0 $ 81 $ 231 $ 312 Foreign currency forwards 0 385 0 385 Total liabilities $ 0 $ 466 $ 231 $ 697 |
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. September 30, 2021 (In millions) Carrying Quoted Prices in Significant Significant Total Assets: Securities held to maturity, Fixed maturity securities: Government and agencies $ 21,673 $ 26,304 $ 237 $ 0 $ 26,541 Municipalities 346 0 453 0 453 Public utilities 44 0 57 0 57 Sovereign and 528 0 667 0 667 Other corporate 22 0 30 0 30 Commercial mortgage and 11,388 0 0 11,596 11,596 Other investments (1) 19 0 19 0 19 Total assets $ 34,020 $ 26,304 $ 1,463 $ 11,596 $ 39,363 Liabilities: Other policyholders’ funds $ 7,286 $ 0 $ 0 $ 7,175 $ 7,175 Notes payable 7,937 0 8,416 266 8,682 Total liabilities $ 15,223 $ 0 $ 8,416 $ 7,441 $ 15,857 (1) Excludes policy loans of $241 and equity method investments of $1,519, at carrying value December 31, 2020 (In millions) Carrying Quoted Prices in Significant Significant Total Assets: Securities held to maturity, Fixed maturity securities: Government and agencies $ 23,445 $ 28,810 $ 260 $ 0 $ 29,070 Municipalities 377 0 499 0 499 Public utilities 47 0 61 0 61 Sovereign and 571 0 736 0 736 Other corporate 24 0 33 0 33 Commercial mortgage and 10,554 0 0 10,655 10,655 Other investments (1) 26 0 26 0 26 Total assets $ 35,044 $ 28,810 $ 1,615 $ 10,655 $ 41,080 Liabilities: Other policyholders’ funds $ 7,824 $ 0 $ 0 $ 7,709 $ 7,709 Notes payable 7,745 0 8,396 288 8,684 Total liabilities $ 15,569 $ 0 $ 8,396 $ 7,997 $ 16,393 (1) Excludes policy loans of $260 and equity method investments of $1,004, at carrying value |
Fair Value Assets Securities Carried At Fair Value Primary Pricing Sources | The following tables present the pricing sources for the fair values of the Company's fixed maturity and equity securities. September 30, 2021 (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 maturity securities: Government and agencies: Third party pricing vendor $ 33,903 $ 831 $ 0 $ 34,734 Internal 0 492 0 492 Total government and agencies 33,903 1,323 0 35,226 Municipalities: Third party pricing vendor 0 2,114 0 2,114 Internal 0 823 0 823 Total municipalities 0 2,937 0 2,937 Mortgage- and asset-backed securities: Third party pricing vendor 0 1,021 0 1,021 Broker/other 0 21 250 271 Total mortgage- and asset-backed securities 0 1,042 250 1,292 Public utilities: Third party pricing vendor 0 4,628 0 4,628 Internal 0 5,163 0 5,163 Broker/other 0 1 523 524 Total public utilities 0 9,792 523 10,315 Sovereign and supranational: Third party pricing vendor 0 279 0 279 Internal 0 818 0 818 Broker/other 0 0 45 45 Total sovereign and supranational 0 1,097 45 1,142 Banks/financial institutions: Third party pricing vendor 0 5,191 0 5,191 Internal 0 6,505 0 6,505 Broker/other 0 0 46 46 Total banks/financial institutions 0 11,696 46 11,742 Other corporate: Third party pricing vendor 0 29,601 0 29,601 Internal 0 8,155 0 8,155 Broker/other 0 6 306 312 Total other corporate 0 37,762 306 38,068 Total securities available for sale $ 33,903 $ 65,649 $ 1,170 $ 100,722 Equity securities, carried at fair value: Third party pricing vendor $ 1,210 $ 90 $ 0 $ 1,300 Broker/other 0 0 161 161 Total equity securities $ 1,210 $ 90 $ 161 $ 1,461 December 31, 2020 (In millions) Quoted Prices in Active Markets Significant Observable Significant Unobservable Inputs Total Securities available for sale, carried at fair value: Fixed maturity securities: Government and agencies: Third party pricing vendor $ 36,032 $ 1,318 $ 0 $ 37,350 Total government and agencies 36,032 1,318 0 37,350 Municipalities: Third party pricing vendor 0 3,018 0 3,018 Total municipalities 0 3,018 0 3,018 Mortgage- and asset-backed securities: Third party pricing vendor 0 364 0 364 Broker/other 0 450 224 674 Total mortgage- and asset-backed securities 0 814 224 1,038 Public utilities: Third party pricing vendor 0 10,395 0 10,395 Broker/other 0 0 422 422 Total public utilities 0 10,395 422 10,817 Sovereign and supranational: Third party pricing vendor 0 1,334 0 1,334 Broker/other 0 0 48 48 Total sovereign and supranational 0 1,334 48 1,382 Banks/financial institutions: Third party pricing vendor 0 12,036 0 12,036 Broker/other 0 0 24 24 Total banks/financial institutions 0 12,036 24 12,060 Other corporate: Third party pricing vendor 0 39,886 0 39,886 Broker/other 0 32 299 331 Total other corporate 0 39,918 299 40,217 Total securities available for sale $ 36,032 $ 68,833 $ 1,017 $ 105,882 Equity securities, carried at fair value: Third party pricing vendor $ 1,095 $ 86 $ 0 $ 1,181 Broker/other 0 0 102 102 Total equity securities $ 1,095 $ 86 $ 102 $ 1,283 |
Fair Value Assets Held-To-Maturity Securities Primary Pricing Sources | September 30, 2021 (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 maturity securities: Government and agencies: Third party pricing vendor $ 26,304 $ 237 $ 0 $ 26,541 Total government and agencies 26,304 237 0 26,541 Municipalities: Third party pricing vendor 0 453 0 453 Total municipalities 0 453 0 453 Public utilities: Third party pricing vendor 0 57 0 57 Total public utilities 0 57 0 57 Sovereign and supranational: Third party pricing vendor 0 322 0 322 Broker/other 0 345 0 345 Total sovereign and supranational 0 667 0 667 Other corporate: Third party pricing vendor 0 30 0 30 Total other corporate 0 30 0 30 Total securities held to maturity $ 26,304 $ 1,444 $ 0 $ 27,748 December 31, 2020 (In millions) Quoted Prices in Active Markets Significant Observable Significant Unobservable Inputs Total Securities held to maturity, carried at amortized cost: Fixed maturity securities: Government and agencies: Third party pricing vendor $ 28,810 $ 260 $ 0 $ 29,070 Total government and agencies 28,810 260 0 29,070 Municipalities: Third party pricing vendor 0 499 0 499 Total municipalities 0 499 0 499 Public utilities: Third party pricing vendor 0 61 0 61 Total public utilities 0 61 0 61 Sovereign and supranational: Third party pricing vendor 0 736 0 736 Total sovereign and supranational 0 736 0 736 Other corporate: Third party pricing vendor 0 33 0 33 Total other corporate 0 33 0 33 Total securities held to maturity $ 28,810 $ 1,589 $ 0 $ 30,399 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The following tables present the changes in fair value of the Company's investments and derivatives carried at fair value classified as Level 3. Derivative assets and liabilities are presented as a net value. Three Months Ended Fixed Maturity Securities Equity Derivatives (In millions) Mortgage- Public Sovereign and Supranational Banks/ Other Foreign Total Balance, beginning of period $ 258 $ 480 $ 45 $ 38 $ 316 $ 158 $ (200) $ 1,095 Net investment gains (losses) included in 0 0 0 0 2 (1) (57) (56) Unrealized gains (losses) included in other (4) (3) 0 0 (7) 0 0 (14) Purchases, issuances, sales and Purchases 35 54 0 8 0 12 0 109 Issuances 0 0 0 0 0 0 0 0 Sales 0 0 0 0 0 (8) 0 (8) Settlements 0 (8) 0 0 0 0 0 (8) Transfers into Level 3 0 0 0 0 0 0 0 0 Transfers out of Level 3 (39) 0 0 0 (5) 0 0 (44) Balance, end of period $ 250 $ 523 $ 45 $ 46 $ 306 $ 161 $ (257) $ 1,074 Changes in unrealized gains (losses) $ (4) $ (3) $ 0 $ 0 $ (7) $ (1) $ (57) $ (72) Three Months Ended Fixed Maturity Securities Equity Derivatives (In millions) Mortgage- Public Banks/ Other Foreign Total Balance, beginning of period $ 188 $ 322 $ 24 $ 243 $ 86 $ (168) $ 695 Net investment gains (losses) included 0 0 0 0 0 23 23 Unrealized gains (losses) included in 3 15 0 24 0 2 44 Purchases, issuances, sales and settlements: Purchases 0 33 0 1 5 0 39 Issuances 0 0 0 0 0 0 0 Sales 0 0 0 0 (5) 0 (5) Settlements 0 (2) 0 0 0 0 (2) 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 $ 191 $ 368 $ 24 $ 268 $ 86 $ (143) $ 794 Changes in unrealized gains (losses) $ 0 $ 0 $ 0 $ 0 $ 0 $ 23 $ 23 Nine Months Ended Fixed Maturity Securities Equity Derivatives (In millions) Mortgage- Public Sovereign Banks/ Other Foreign Total Balance, beginning of period $ 224 $ 422 $ 48 $ 24 $ 299 $ 102 $ (98) $ 1,021 Net investment gains (losses) included 0 0 0 0 2 21 (158) (135) Unrealized gains (losses) included in (19) (13) (3) (1) (5) 0 (1) (42) Purchases, issuances, sales Purchases 99 132 0 23 0 29 0 283 Issuances 0 0 0 0 0 17 0 17 Sales 0 0 (23) 0 0 (8) 0 (31) Settlements 0 (18) 0 0 (17) 0 0 (35) Transfers into Level 3 0 0 23 0 32 0 0 55 Transfers out of Level 3 (54) 0 0 0 (5) 0 0 (59) Balance, end of period $ 250 $ 523 $ 45 $ 46 $ 306 $ 161 $ (257) $ 1,074 Changes in unrealized gains $ (19) $ (13) $ (3) $ (1) $ (5) $ 21 $ (158) $ (178) Nine Months Ended Fixed Maturity Securities Equity Derivatives (In millions) Mortgage- Public Banks/ Other Foreign Total Balance, beginning of period $ 178 $ 224 $ 23 $ 262 $ 80 $ 43 $ 810 Net investment gains (losses) included 0 0 0 0 0 (184) (184) Unrealized gains (losses) included in other 5 6 0 8 0 (2) 17 Purchases, issuances, sales and settlements: Purchases 0 129 1 13 12 0 155 Issuances 0 0 0 0 0 0 0 Sales 0 0 0 0 (6) 0 (6) Settlements (1) (6) 0 0 0 0 (7) Transfers into Level 3 9 15 0 0 0 0 24 Transfers out of Level 3 0 0 0 (15) 0 0 (15) Balance, end of period $ 191 $ 368 $ 24 $ 268 $ 86 $ (143) $ 794 Changes in unrealized gains (losses) relating $ 0 $ 0 $ 0 $ 0 $ 0 $ (184) $ (184) |
Fair Value Measurement Inputs and Valuation Techniques | Level 3 Significant Unobservable Input Sensitivity The following tables summarize the significant unobservable inputs used in the valuation of the Company's Level 3 investments and derivatives carried at fair value. Included in the tables are the inputs or range of possible inputs that have an effect on the overall valuation of the financial instruments. September 30, 2021 (In millions) Fair Value Valuation Technique(s) Unobservable Input Range Assets: Securities available for sale, carried at fair value: Fixed maturity securities: Mortgage- and asset-backed securities $ 250 Consensus pricing Offered quotes N/A (a) Public utilities 523 Discounted cash flow Credit spreads N/A (a) Sovereign and supranational 45 Discounted cash flow Historical volatility N/A (a) Banks/financial institutions 46 Consensus pricing Offered quotes N/A (a) Other corporate 306 Discounted cash flow Credit spreads N/A (a) Equity securities 161 Net asset value Offered quotes N/A (a) Other assets: Foreign currency swaps 34 Discounted cash flow Interest rates (USD) 1.51% - 1.79% (b) Interest rates (JPY) .11% - .53% (c) CDS spreads 23 bps - 124 bps 65 Discounted cash flow Interest rates (USD) 1.51% - 1.79% (b) Interest rates (JPY) .11% - .53% (c) Total assets $ 1,430 Liabilities: Other liabilities: Foreign currency swaps $ 167 Discounted cash flow Interest rates (USD) 1.51% - 1.79% (b) Interest rates (JPY) .11% - .53% (c) CDS spreads 23 bps - 182 bps 189 Discounted cash flow Interest rates (USD) 1.51% - 1.79% (b) Interest rates (JPY) .11% - .53% (c) Total liabilities $ 356 (a) N/A represents securities where the Company receives unadjusted broker quotes and for which there is no transparency into the providers' valuation techniques or unobservable inputs. (b) Inputs derived from U.S. long-term rates to accommodate long maturity nature of the Company's swaps (c) Inputs derived from Japan long-term rates to accommodate long maturity nature of the Company's swaps December 31, 2020 (In millions) Fair Value Valuation Technique(s) Unobservable Input Range Assets: Securities available for sale, carried at fair value: Fixed maturity securities: Mortgage- and asset-backed securities $ 224 Consensus pricing Offered quotes N/A (a) Public utilities 422 Discounted cash flow Credit spreads N/A (a) Sovereign and supranational 48 Discounted cash flow Historical volatility N/A (a) Banks/financial institutions 24 Consensus pricing Offered quotes N/A (a) Other corporate 299 Discounted cash flow Credit spreads N/A (a) Equity securities 102 Net asset value Offered quotes N/A (a) Other assets: Foreign currency swaps 69 Discounted cash flow Interest rates (USD) .93% - 1.40% (b) Interest rates (JPY) .05% - .43% (c) CDS spreads 22 bps - 128 bps 64 Discounted cash flow Interest rates (USD) .93% - 1.40% (b) Interest rates (JPY) .05% - .43% (c) Total assets $ 1,252 Liabilities: Other liabilities: Foreign currency swaps $ 160 Discounted cash flow Interest rates (USD) .93% - 1.12% (b) Interest rates (JPY) .05% - .35% (c) CDS spreads 41 bps - 140 bps 71 Discounted cash flow Interest rates (USD) .93% - 1.12% (b) Interest rates (JPY) .05% - .35% (c) Total liabilities $ 231 (a) N/A represents securities where the Company receives unadjusted broker quotes and for which there is no transparency into the providers' valuation techniques or unobservable inputs. (b) Inputs derived from U.S. long-term rates to accommodate long maturity nature of the Company's swaps (c) Inputs derived from Japan long-term rates to accommodate long maturity nature of the Company's swaps |
POLICY LIABILITIES (Tables)
POLICY LIABILITIES (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Insurance Loss Reserves [Abstract] | |
Schedule of Liability for Unpaid Claims Adjustment Expense | Changes in the liability for unpaid policy claims were as follows: Three Months Ended Nine Months Ended (In millions) 2021 2020 2021 2020 Unpaid supplemental health claims, beginning of period $ 4,162 $ 4,041 $ 4,389 $ 3,968 Less reinsurance recoverables 37 37 39 31 Net balance, beginning of period 4,125 4,004 4,350 3,937 Add claims incurred during the period related to: Current year 1,720 1,780 5,302 5,354 Prior years (215) (105) (739) (408) Total incurred 1,505 1,675 4,563 4,946 Less claims paid during the period on claims incurred during: Current year 1,279 1,295 2,947 2,971 Prior years 219 249 1,676 1,811 Total paid 1,498 1,544 4,623 4,782 Effect of foreign exchange rate changes on unpaid claims (29) 42 (187) 76 Net balance, end of period 4,103 4,177 4,103 4,177 Add reinsurance recoverables 39 40 39 40 Unpaid supplemental health claims, end of period 4,142 4,217 4,142 4,217 Unpaid life claims, end of period 767 759 767 759 Total liability for unpaid policy claims $ 4,909 $ 4,976 $ 4,909 $ 4,976 |
REINSURANCE (Tables)
REINSURANCE (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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 which also includes the elimination of inter-segment amounts associated with affiliated reinsurance. Three Months Ended Nine Months Ended (In millions) 2021 2020 2021 2020 Direct premium income $ 4,426 $ 4,711 $ 13,567 $ 14,236 Ceded to other companies: Ceded Aflac Japan closed blocks (107) (116) (329) (349) Other (19) (22) (54) (69) Assumed from other companies: Retrocession activities 45 49 138 146 Other 27 1 84 5 Net premium income $ 4,372 $ 4,623 $ 13,406 $ 13,969 Direct benefits and claims $ 2,649 $ 3,051 $ 8,112 $ 9,054 Ceded benefits and change in reserves for future benefits: Ceded Aflac Japan closed blocks (94) (103) (288) (314) Eliminations 8 10 24 29 Other (9) (10) (25) (54) Assumed from other companies: Retrocession activities 42 47 126 133 Eliminations (8) (10) (24) (29) Other 21 0 71 3 Benefits and claims, net $ 2,609 $ 2,985 $ 7,996 $ 8,822 |
NOTES PAYABLE AND LEASE OBLIG_2
NOTES PAYABLE AND LEASE OBLIGATIONS (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | A summary of notes payable and lease obligations follows: (In millions) September 30, 2021 December 31, 2020 3.625% senior notes paid May 2021 $ 0 $ 698 3.625% senior notes due November 2024 748 747 3.25% senior notes due March 2025 448 448 1.125% senior sustainability notes due March 2026 397 0 2.875% senior notes due October 2026 298 298 3.60% senior notes due April 2030 991 990 6.90% senior notes due December 2039 221 221 6.45% senior notes due August 2040 255 254 4.00% senior notes due October 2046 394 394 4.750% senior notes due January 2049 541 541 Yen-denominated senior notes and subordinated debentures: .300% senior notes due September 2025 (principal amount ¥12.4 billion) 110 119 .932% senior notes due January 2027 (principal amount ¥60.0 billion) 534 578 .500% senior notes due December 2029 (principal amount ¥12.6 billion) 112 121 .550% senior notes due March 2030 (principal amount ¥13.3 billion) 118 127 1.159% senior notes due October 2030 (principal amount ¥29.3 billion) 261 282 .633% senior notes due April 2031 (principal amount ¥30.0 billion) 266 0 .843% senior notes due December 2031 (principal amount ¥9.3 billion) 83 90 .750% senior notes due March 2032 (principal amount ¥20.7 billion) 183 198 .844% senior notes due April 2033 (principal amount ¥12.0 billion) 107 0 1.488% senior notes due October 2033 (principal amount ¥15.2 billion) 135 146 .934% senior notes due December 2034 (principal amount ¥9.8 billion) 87 94 .830% senior notes due March 2035 (principal amount ¥10.6 billion) 94 101 1.039% senior notes due April 2036 (principal amount ¥10.0 billion) 88 0 1.750% senior notes due October 2038 (principal amount ¥8.9 billion) 79 85 1.122% senior notes due December 2039 (principal amount ¥6.3 billion) 56 61 1.264% senior notes due April 2041 (principal amount ¥10.0 billion) 89 0 2.108% subordinated debentures due October 2047 (principal amount ¥60.0 billion) 532 575 .963% subordinated bonds due April 2049 (principal amount ¥30.0 billion) 267 289 1.560% senior notes due April 2051 (principal amount ¥20.0 billion) 177 0 Yen-denominated loans: Variable interest rate loan due September 2026 (.41% in 2021 and .43% in 2020, principal amount ¥5.0 billion) 44 48 Variable interest rate loan due September 2029 (.56% in 2021 and .58% in 2020, principal amount ¥25.0 billion) 222 240 Finance lease obligations payable through 2027 13 11 Operating lease obligations payable through 2049 116 143 Total notes payable and lease obligations $ 8,066 $ 7,899 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. |
Schedule of Line of Credit Facilities | A summary of the Company's lines of credit as of September 30, 2021 follows: Borrower(s) Type Term Expiration Date Capacity Amount Outstanding Interest Rate on Borrowed Amount Maturity Period Commitment Fee Business Purpose Aflac Incorporated uncommitted bilateral 364 days December 17, 2021 $100 million $0 million The rate quoted by the bank and agreed upon at the time of borrowing Up to 3 months None General corporate purposes Aflac Incorporated unsecured revolving 5 years March 29, 2024, or the date commitments are terminated pursuant to an event of default ¥100.0 billion ¥0.0 billion A rate per annum equal to (a) Tokyo interbank market rate (TIBOR) plus, the alternative applicable TIBOR margin during the availability period from the closing date to the commitment termination date or (b) the TIBOR rate offered by the agent to major banks in yen for the applicable period plus, the applicable alternative TIBOR margin during the term out period No later than .30% to .50%, depending on the Parent Company's debt ratings as of the date of determination General corporate purposes, including a capital contingency plan for the operations of the Parent Company Aflac Incorporated unsecured revolving 5 years November 18, 2024, or the date commitments are terminated pursuant to an event of default $1.0 billion $0.0 billion A rate per annum equal to, at the Company's option, either, (a) London Interbank Offered Rate (LIBOR) for U.S. dollar denominated borrowings or TIBOR for Japanese yen denominated borrowings, in either case adjusted for certain costs, or (b) a base rate determined by reference to the highest of (1) the federal funds rate plus 1/2 of 1%, (2) the rate of interest for such day announced by Mizuho Bank, Ltd. as its prime rate, or (3) the eurocurrency rate for an interest period of one month plus 1.00%, in each case plus an applicable margin No later than November 18, 2024 .085% to .225%, depending on the Parent Company's debt ratings as of the date of determination General corporate purposes, including a capital contingency plan for the operations of the Parent Company Aflac Incorporated uncommitted bilateral None specified None specified $50 million $0 million A rate per annum equal to, at the Company's option, either (a) a rate determined by reference to LIBOR for the interest period relevant to such borrowing or (b) the base rate determined by reference to the highest of (a) the lender's U.S. dollar short-term commercial loan rate, (b) the federal funds rate plus 1/2 of 1% and (c) one-month LIBOR plus 1%. LIBOR is subject to replacement with Secured Overnight Financing Rate (SOFR) under certain circumstances Up to 3 months None General corporate purposes Aflac (1) uncommitted revolving 364 days November 30, 2021 $250 million $0 million USD three-month LIBOR plus 75 basis points per annum 3 months None General corporate purposes Aflac Incorporated (1) uncommitted revolving 364 days April 4, 2022 ¥50.0 billion ¥0.0 billion Three-month TIBOR plus 70 basis points per annum 3 months None General corporate purposes Aflac Incorporated (1) uncommitted revolving 364 days November 26, 2021 ¥50.0 billion ¥0.0 billion Three-month TIBOR plus 70 basis points per annum 3 months None General corporate purposes Aflac New York (1) uncommitted revolving 364 days April 8, 2022 $25 million $0 million USD three-month LIBOR plus 75 basis points per annum 3 months None General corporate purposes CAIC (1) uncommitted revolving 364 days March 21, 2022 $15 million $0 million USD three-month LIBOR plus 75 basis points per annum 3 months None General corporate purposes (1) Intercompany credit agreement (continued) Borrower(s) Type Term Expiration Date Capacity Amount Outstanding Interest Rate on Borrowed Amount Maturity Period Commitment Fee Business Purpose Tier One Insurance Company (1) uncommitted revolving 364 days March 21, 2022 $0.3 million $0 million USD three-month LIBOR plus 75 basis points per annum 3 months None General corporate purposes AGV Management Services Japan K.K. (1) uncommitted revolving 364 days May 2, 2022 ¥500 million ¥350 million A rate per annum equal to the short-term prime lending rates of banks appearing on the website for the Bank of Japan on the first day of the applicable period No later than None General corporate purposes Hatch Healthcare K.K. (1) uncommitted revolving 364 days January 3, 2022 ¥900 million ¥0 million A rate per annum equal to the short-term prime lending rates of banks appearing on the website for the Bank of Japan on the first day of the applicable period No later than January 3, 2022 None General corporate purposes Hatch Insight K.K. (1) uncommitted revolving 364 days January 3, 2022 ¥600 million ¥0 million A rate per annum equal to the short-term prime lending rates of banks appearing on the website for the Bank of Japan on the first day of the applicable period No later than January 3, 2022 None General corporate purposes Aflac GI Holdings LLC (1) uncommitted revolving 364 days July 18, 2022 $30 million $0 million USD three-month LIBOR plus 75 basis points per annum No later than July 18, 2022 None General corporate purposes (1) Intercompany credit agreement |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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 nine-month periods ended September 30. (In thousands of shares) 2021 2020 Common stock - issued: Balance, beginning of period 1,351,018 1,349,309 Exercise of stock options and issuance of restricted shares 1,544 1,546 Balance, end of period 1,352,562 1,350,855 Treasury stock: Balance, beginning of period 658,564 622,516 Purchases of treasury stock: Share repurchase program 32,186 26,108 Other 419 541 Dispositions of treasury stock: Shares issued to AFL Stock Plan (967) (1,584) Exercise of stock options (240) (49) Other (217) (251) Balance, end of period 689,745 647,281 Shares outstanding, end of period 662,817 703,574 |
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 Nine Months Ended (In thousands) 2021 2020 2021 2020 Anti-dilutive share-based awards 0 592 1 857 |
Changes in Accumulated Other Comprehensive Income (Loss) | 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 Total Balance at June 30, 2021 $ (1,661) $ 9,992 $ (33) $ (279) $ 8,019 Other comprehensive (99) (251) 0 (5) (355) Amounts reclassified from 0 (10) 2 6 (2) Net current-period other (99) (261) 2 1 (357) Balance at September 30, 2021 $ (1,760) $ 9,731 $ (31) $ (278) $ 7,662 All amounts in the table above are net of tax. Three Months Ended (In millions) Unrealized Foreign Unrealized Unrealized Pension Liability Adjustment Total Balance at June 30, 2020 $ (1,469) $ 8,532 $ (36) $ (277) $ 6,750 Other comprehensive 179 995 1 (5) 1,170 Amounts reclassified from 0 (7) 0 4 (3) Net current-period other 179 988 1 (1) 1,167 Balance at September 30, 2020 $ (1,290) $ 9,520 $ (35) $ (278) $ 7,917 All amounts in the table above are net of tax. Nine Months Ended (In millions) Unrealized Foreign Unrealized Unrealized Pension Total Balance at December 31, 2020 $ (1,109) $ 10,361 $ (34) $ (284) $ 8,934 Other comprehensive (651) (632) 0 (15) (1,298) Amounts reclassified from 0 2 3 21 26 Net current-period other (651) (630) 3 6 (1,272) Balance at September 30, 2021 $ (1,760) $ 9,731 $ (31) $ (278) $ 7,662 All amounts in the table above are net of tax. Nine Months Ended (In millions) Unrealized Foreign Unrealized Unrealized Pension Liability Adjustment Total Balance at December 31, 2019 $ (1,623) $ 8,548 $ (33) $ (277) $ 6,615 Cumulative effect of change 0 848 0 0 848 Balance at January 1, 2020 $ (1,623) $ 9,396 $ (33) $ (277) $ 7,463 Other comprehensive 333 20 (2) (18) 333 Amounts reclassified from 0 104 0 17 121 Net current-period other 333 124 (2) (1) 454 Balance at September 30, 2020 $ (1,290) $ 9,520 $ (35) $ (278) $ 7,917 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 into net earnings 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 $ 13 Net investment gains (losses) (3) Tax (expense) or benefit (1) $ 10 Net of tax Unrealized gains (losses) on derivatives $ (2) Net investment gains (losses) 0 Tax (expense) or benefit (1) $ (2) Net of tax Amortization of defined benefit pension items: Actuarial gains (losses) $ (8) Acquisition and operating expenses (2) Prior service (cost) credit 0 Acquisition and operating expenses (2) 2 Tax (expense) or benefit (1) $ (6) Net of tax Total reclassifications for the period $ 2 Net of tax (1) Based on 21% 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 $ 13 Net investment gains (losses) (6) Tax (expense) or benefit (1) $ 7 Net of tax Amortization of defined benefit pension items: Actuarial gains (losses) $ (7) Acquisition and operating expenses (2) Prior service (cost) credit 0 Acquisition and operating expenses (2) 3 Tax (expense) or benefit (1) $ (4) Net of tax Total reclassifications for the period $ 3 Net of tax (1) Based on 21% tax rate, with a cumulative adjustment to the first six months of 2020 due to the effects of Final and Proposed Regulations released on September 29, 2020 by the U.S. Treasury and Internal Revenue Service and addressing, among other items, the allocation of insurance expenses in the calculation of the foreign tax credit limitation. See Note 10 of the Notes to the Consolidated Financial Statements in the Company's 2020 Annual Report on Form 10-K. (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) Nine 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 $ (2) Net investment gains (losses) 0 Tax (expense) or benefit (1) $ (2) Net of tax Unrealized gains (losses) on derivatives $ (4) Net investment gains (losses) 1 Tax (expense) or benefit (1) $ (3) Net of tax Amortization of defined benefit pension items: Actuarial gains (losses) $ (27) Acquisition and operating expenses (2) Prior service (cost) credit 0 Acquisition and operating expenses (2) 6 Tax (expense) or benefit (1) $ (21) Net of tax Total reclassifications for the period $ (26) Net of tax (1) Based on 21% 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) Nine 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 $ (132) Net investment gains (losses) 28 Tax (expense) or benefit (1) $ (104) Net of tax Amortization of defined benefit pension items: Actuarial gains (losses) $ (22) Acquisition and operating expenses (2) Prior service (cost) credit 0 Acquisition and operating expenses (2) 5 Tax (expense) or benefit (1) $ (17) Net of tax Total reclassifications for the period $ (121) Net of tax (1) Based on 21% 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) | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock Options Outstanding and Exercisable | The following table provides information on stock options outstanding and exercisable at September 30, 2021. Stock Weighted-Average Aggregate Weighted-Average Outstanding 2,317 3.6 $ 49 $ 30.87 Exercisable 2,317 3.6 49 30.87 |
Schedule of Nonvested Restricted Stock Units Activity | The following table summarizes restricted stock activity during the nine-month period ended September 30, 2021. (In thousands of shares) Shares Weighted-Average Restricted stock at December 31, 2020 2,580 $ 48.57 Granted in 2021 1,454 47.70 Canceled in 2021 (102) 48.89 Vested in 2021 (1,317) 45.91 Restricted stock at September 30, 2021 2,615 $ 49.20 |
BENEFIT PLANS (Tables)
BENEFIT PLANS (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Schedule of Net Benefit Costs | Pension and other postretirement benefit expenses are included in acquisition and operating expenses in the consolidated statement of earnings, which includes other components of net periodic pension cost and postretirement costs (other than service costs) $4 million and $6 million for the three-month periods ended September 30, 2021 and 2020, respectively and $18 million for the nine-month periods ended September 30, 2021 and 2020. Total net periodic cost includes the following components: Three Months Ended September 30, Pension Benefits Other Japan U.S. Postretirement Benefits (In millions) 2021 2020 2021 2020 2021 2020 Components of net periodic Service cost $ 6 $ 6 $ 7 $ 7 $ 0 $ 0 Interest cost 1 1 8 9 0 0 Expected return on plan assets (2) (2) (11) (9) 0 0 Amortization of net actuarial loss 1 1 7 6 0 0 Net periodic (benefit) cost $ 6 $ 6 $ 11 $ 13 $ 0 $ 0 Nine Months Ended September 30, Pension Benefits Other Japan U.S. Postretirement Benefits (In millions) 2021 2020 2021 2020 2021 2020 Components of net periodic Service cost $ 18 $ 18 $ 21 $ 21 $ 0 $ 0 Interest cost 3 3 24 25 1 1 Expected return on plan assets (6) (6) (31) (27) 0 0 Amortization of net actuarial loss 2 3 23 18 2 1 Net periodic (benefit) cost $ 17 $ 18 $ 37 $ 37 $ 3 $ 2 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Detail) $ in Millions | 9 Months Ended | ||||||
Sep. 30, 2021USD ($)segment | Sep. 30, 2020USD ($) | Jun. 30, 2021USD ($) | Jan. 01, 2021USD ($) | Dec. 31, 2020USD ($) | Jun. 30, 2020USD ($) | Dec. 31, 2019USD ($) | |
Significant Accounting Policies [Line Items] | |||||||
Number of reportable insurance business segments | segment | 2 | ||||||
Accumulated other comprehensive income (loss) | $ 7,662 | $ 7,917 | $ 8,019 | $ 8,934 | $ 6,750 | $ 6,615 | |
Lower Limit | Pro Forma | Accounting Standards Update 2018-12 | Cumulative effect, period of adoption, adjustment | |||||||
Significant Accounting Policies [Line Items] | |||||||
Accumulated other comprehensive income (loss) | $ (18,000) | ||||||
Upper Limit | Pro Forma | Accounting Standards Update 2018-12 | Cumulative effect, period of adoption, adjustment | |||||||
Significant Accounting Policies [Line Items] | |||||||
Accumulated other comprehensive income (loss) | $ (20,000) | ||||||
Aflac Japan | |||||||
Significant Accounting Policies [Line Items] | |||||||
Percentage of the Company's total revenues | 69.00% | 68.00% | |||||
Percentage of the Company's total assets | 82.00% | 83.00% |
BUSINESS SEGMENT INFORMATION -
BUSINESS SEGMENT INFORMATION - Operations by Segment - Revenues (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)segment | Sep. 30, 2020USD ($) | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Number of reportable insurance business segments | segment | 2 | ||||
Net earned premiums | $ 4,372 | $ 4,623 | $ 13,406 | $ 13,969 | |
Total adjusted revenues | 5,395 | 5,535 | 16,412 | 16,688 | |
Net investment gains (losses) | [1],[2],[3],[4] | (158) | 130 | 258 | (454) |
Total revenues | 5,237 | 5,665 | 16,670 | 16,234 | |
Aflac Japan | |||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Net earned premiums | 2,934 | 3,168 | 9,045 | 9,476 | |
Adjusted net investment income | [1],[3] | 763 | 663 | 2,260 | 1,939 |
Other income | 10 | 11 | 32 | 32 | |
Total adjusted revenues | 3,707 | 3,842 | 11,337 | 11,447 | |
Hedge costs | 20 | 51 | 55 | 155 | |
Net interest cash flows from derivatives | (7) | 6 | (24) | 5 | |
Aflac U.S. | |||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Net earned premiums | 1,393 | 1,407 | 4,223 | 4,348 | |
Adjusted net investment income | [4] | 191 | 175 | 557 | 523 |
Other income | 32 | 24 | 90 | 78 | |
Total adjusted revenues | 1,616 | 1,606 | 4,870 | 4,949 | |
Net interest cash flows from derivatives | 1 | 1 | 1 | 2 | |
Corporate and other | |||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Total adjusted revenues | [2],[5] | 72 | 87 | 205 | 292 |
Hedge income | 13 | $ 22 | 45 | $ 78 | |
Corporate and Other | |||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Income (loss) from federal historic rehabilitation and solar tax credit investments | (5) | (35) | |||
Federal historic rehabilitation and solar tax credits, amount | $ 10 | $ 35 | |||
[1] | Amortized hedge costs of $20 and $51 for the three-month periods and $55 and $155 for the nine-month periods ended September 30, 2021, and 2020, respectively, related to certain foreign currency exposure management strategies have been reclassified from net investment gains (losses) and reported as a deduction from net investment income when analyzing operations. | ||||
[2] | Amortized hedge income of $13 and $22 for the three-month periods and $45 and $78 for the nine-month periods ended September 30, 2021, and 2020, respectively, related to certain foreign currency exposure management strategies has been reclassified from net investment gains (losses) and reported as an increase to net investment income when analyzing operations. | ||||
[3] | Net interest cash flows from derivatives associated with certain investment strategies of $(7) and $6 for the three-month periods and $(24) and $5 for the nine-month periods ended September 30, 2021 and 2020, respectively, have been reclassified from net investment gains (losses) and included in adjusted earnings as a component of net investment income when analyzing operations. | ||||
[4] | Net interest cash flows from derivatives associated with certain investment strategies of $1 for both three-month periods and $1 and $2 for the nine-month periods ended September 30, 2021 and 2020, respectively, have been reclassified from net investment gains (losses) and included in adjusted earnings as a component of net investment income. | ||||
[5] | The change in value of federal historic rehabilitation and solar investments in partnerships of $5 and $35 for the three- and nine-month periods ended September 30, 2021, respectively, are included as a reduction to net investment income. Offsetting tax credits on these investments of $10 and $35 for the three- and nine-month periods ended September 30, 2021, respectively, have been recorded as an income tax benefit in the consolidated statement of earnings. See Note 3 of the Notes to the Consolidated Financial Statements for additional information on these investments. |
BUSINESS SEGMENT INFORMATION _2
BUSINESS SEGMENT INFORMATION - Operations by Segment - Pretax Earnings (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | ||
Segment Reporting, Reconciling Item for Adjusted Profit (Loss) from Segment to Consolidated [Line Items] | |||||
Pretax adjusted earnings | [1] | $ 1,293 | $ 1,037 | $ 3,940 | $ 3,455 |
Net investment gains (losses) | [2],[3],[4],[5],[6] | (172) | 117 | 216 | (497) |
Other income (loss) | (8) | (1) | (66) | (16) | |
Earnings before income taxes | 1,113 | 1,153 | 4,090 | 2,942 | |
Income taxes applicable to pretax adjusted earnings | 262 | 43 | 771 | 659 | |
Effect of foreign currency translation on after tax adjusted earnings | (14) | 3 | (8) | 17 | |
Interest expense on debt | 40 | 44 | 130 | 122 | |
Aflac Japan | |||||
Segment Reporting, Reconciling Item for Adjusted Profit (Loss) from Segment to Consolidated [Line Items] | |||||
Pretax adjusted earnings | [2],[5] | 976 | 747 | 2,867 | 2,442 |
Hedge costs | 20 | 51 | 55 | 155 | |
Net interest cash flows from derivatives | (7) | 6 | (24) | 5 | |
Aflac U.S. | |||||
Segment Reporting, Reconciling Item for Adjusted Profit (Loss) from Segment to Consolidated [Line Items] | |||||
Pretax adjusted earnings | [6] | 358 | 329 | 1,217 | 1,082 |
Net interest cash flows from derivatives | 1 | 1 | 1 | 2 | |
Corporate and other | |||||
Segment Reporting, Reconciling Item for Adjusted Profit (Loss) from Segment to Consolidated [Line Items] | |||||
Pretax adjusted earnings | [3],[4],[7] | (41) | (39) | (144) | (69) |
Hedge income | 13 | 22 | 45 | 78 | |
Gain (loss) on change in fair value of derivative, interest rate component | 14 | $ 13 | 41 | $ 43 | |
Corporate and Other | |||||
Segment Reporting, Reconciling Item for Adjusted Profit (Loss) from Segment to Consolidated [Line Items] | |||||
Income (loss) from federal historic rehabilitation and solar tax credit investments | (5) | (35) | |||
Federal historic rehabilitation and solar tax credits, amount | $ 10 | $ 35 | |||
[1] | Includes $40 and $44 for the three-month periods and $130 and $122 for the nine-month periods ended September 30, 2021, and 2020, respectively, of interest expense on debt. | ||||
[2] | Amortized hedge costs of $20 and $51 for the three-month periods and $55 and $155 for the nine-month periods ended September 30, 2021, and 2020, respectively, related to certain foreign currency exposure management strategies have been reclassified from net investment gains (losses) and reported as a deduction from net investment income when analyzing operations. | ||||
[3] | A gain of $14 and $13 for the three-month periods and $41 and $43 for the nine-month periods ended September 30, 2021, and 2020, respectively, related to the interest rate component of the change in fair value of foreign currency swaps on notes payable has been reclassified from net investment gains (losses) and included in adjusted earnings when analyzing operations. | ||||
[4] | Amortized hedge income of $13 and $22 for the three-month periods and $45 and $78 for the nine-month periods ended September 30, 2021, and 2020, respectively, related to certain foreign currency exposure management strategies has been reclassified from net investment gains (losses) and reported as an increase in net investment income when analyzing operations. | ||||
[5] | Net interest cash flows from derivatives associated with certain investment strategies of $(7) and $6 for the three-month periods and $(24) and $5 for the nine-month periods ended September 30, 2021 and 2020, respectively, have been reclassified from net investment gains (losses) and included in adjusted earnings as a component of net investment income when analyzing operations. | ||||
[6] | Net interest cash flows from derivatives associated with certain investment strategies of $1 for both three-month periods and $1 and $2 for the nine-month periods ended September 30, 2021 and 2020, respectively, have been reclassified from net investment gains (losses) and included in adjusted earnings as a component of net investment income. | ||||
[7] | The change in value of federal historic rehabilitation and solar investments in partnerships of $5 and $35 for the three- and nine-month periods ended September 30, 2021, respectively, is included as a reduction to net investment income. Offsetting tax credits on these investments of $10 and $35 for the three- and nine-month periods ended September 30, 2021, respectively, have been recorded as an income tax benefit in the consolidated statement of earnings. See Note 3 of the Notes to the Consolidated Financial Statements for additional information on these investments. |
BUSINESS SEGMENT INFORMATION _3
BUSINESS SEGMENT INFORMATION - Operations by Segment - Assets (Detail) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $ 160,597 | $ 165,086 |
Aflac Japan | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 131,651 | 137,271 |
Aflac U.S. | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 23,304 | 22,864 |
Corporate and other | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $ 5,642 | $ 4,951 |
INVESTMENTS - Available-for-sal
INVESTMENTS - Available-for-sale Debt Securities (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 87,228 | $ 91,630 |
Allowance for Credit Losses | 0 | 38 |
Gross Unrealized Gains | 13,729 | 14,771 |
Gross Unrealized Losses | 235 | 481 |
Fair Value | 100,722 | 105,882 |
Yen-denominated | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 52,974 | 56,049 |
Allowance for Credit Losses | 0 | 0 |
Gross Unrealized Gains | 7,338 | 8,420 |
Gross Unrealized Losses | 158 | 198 |
Fair Value | 60,154 | 64,271 |
Dollar-denominated | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 34,254 | 35,581 |
Allowance for Credit Losses | 0 | 38 |
Gross Unrealized Gains | 6,391 | 6,351 |
Gross Unrealized Losses | 77 | 283 |
Fair Value | 40,568 | 41,611 |
Japan government and agencies | Yen-denominated | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 31,549 | 32,959 |
Allowance for Credit Losses | 0 | 0 |
Gross Unrealized Gains | 3,574 | 4,182 |
Gross Unrealized Losses | 62 | 52 |
Fair Value | 35,061 | 37,089 |
Municipalities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 2,937 | 3,018 |
Municipalities | Yen-denominated | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 1,224 | 1,324 |
Allowance for Credit Losses | 0 | 0 |
Gross Unrealized Gains | 323 | 374 |
Gross Unrealized Losses | 5 | 5 |
Fair Value | 1,542 | 1,693 |
Municipalities | Dollar-denominated | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 1,217 | 1,154 |
Allowance for Credit Losses | 0 | 0 |
Gross Unrealized Gains | 179 | 173 |
Gross Unrealized Losses | 1 | 2 |
Fair Value | 1,395 | 1,325 |
Mortgage- and asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 1,292 | 1,038 |
Mortgage- and asset-backed securities | Yen-denominated | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 310 | 342 |
Allowance for Credit Losses | 0 | 0 |
Gross Unrealized Gains | 21 | 27 |
Gross Unrealized Losses | 1 | 1 |
Fair Value | 330 | 368 |
Mortgage- and asset-backed securities | Dollar-denominated | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 932 | 667 |
Allowance for Credit Losses | 0 | 0 |
Gross Unrealized Gains | 30 | 8 |
Gross Unrealized Losses | 0 | 5 |
Fair Value | 962 | 670 |
Public utilities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 10,315 | 10,817 |
Public utilities | Yen-denominated | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 4,584 | 4,777 |
Allowance for Credit Losses | 0 | 0 |
Gross Unrealized Gains | 930 | 1,096 |
Gross Unrealized Losses | 2 | 1 |
Fair Value | 5,512 | 5,872 |
Public utilities | Dollar-denominated | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 3,887 | 4,013 |
Allowance for Credit Losses | 0 | 0 |
Gross Unrealized Gains | 920 | 947 |
Gross Unrealized Losses | 4 | 15 |
Fair Value | 4,803 | 4,945 |
Sovereign and supranational | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 1,142 | 1,382 |
Sovereign and supranational | Yen-denominated | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 781 | 981 |
Allowance for Credit Losses | 0 | 0 |
Gross Unrealized Gains | 81 | 108 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 862 | 1,089 |
Sovereign and supranational | Dollar-denominated | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 225 | 232 |
Allowance for Credit Losses | 0 | 0 |
Gross Unrealized Gains | 59 | 64 |
Gross Unrealized Losses | 4 | 3 |
Fair Value | 280 | 293 |
Banks/financial institutions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 11,742 | 12,060 |
Banks/financial institutions | Yen-denominated | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 7,149 | 7,552 |
Allowance for Credit Losses | 0 | 0 |
Gross Unrealized Gains | 834 | 886 |
Gross Unrealized Losses | 66 | 102 |
Fair Value | 7,917 | 8,336 |
Banks/financial institutions | Dollar-denominated | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 3,081 | 2,973 |
Allowance for Credit Losses | 0 | 0 |
Gross Unrealized Gains | 745 | 758 |
Gross Unrealized Losses | 1 | 7 |
Fair Value | 3,825 | 3,724 |
Other corporate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 38,068 | 40,217 |
Other corporate | Yen-denominated | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 7,377 | 8,114 |
Allowance for Credit Losses | 0 | 0 |
Gross Unrealized Gains | 1,575 | 1,747 |
Gross Unrealized Losses | 22 | 37 |
Fair Value | 8,930 | 9,824 |
Other corporate | Dollar-denominated | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 24,757 | 26,297 |
Allowance for Credit Losses | 0 | 38 |
Gross Unrealized Gains | 4,448 | 4,385 |
Gross Unrealized Losses | 67 | 251 |
Fair Value | 29,138 | 30,393 |
U.S. government and agencies | Dollar-denominated | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 155 | 245 |
Allowance for Credit Losses | 0 | 0 |
Gross Unrealized Gains | 10 | 16 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | $ 165 | $ 261 |
INVESTMENTS - Held-to-Maturity
INVESTMENTS - Held-to-Maturity Debt Securities (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 | |
Schedule of Held-to-maturity Securities [Line Items] | |||
Securities held to maturity, fixed maturities, amortized cost | $ 22,622 | $ 24,474 | |
Allowance for Credit Loss | 9 | 10 | |
Net Carrying Amount | 22,613 | [1] | 24,464 |
Gross Unrealized Gains | 5,135 | 5,935 | |
Gross Unrealized Losses | 0 | 0 | |
Fair Value | 27,748 | 30,399 | |
Yen-denominated | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Securities held to maturity, fixed maturities, amortized cost | 22,622 | 24,474 | |
Allowance for Credit Loss | 9 | 10 | |
Net Carrying Amount | 22,613 | 24,464 | |
Gross Unrealized Gains | 5,135 | 5,935 | |
Gross Unrealized Losses | 0 | 0 | |
Fair Value | 27,748 | 30,399 | |
Japan government and agencies | Yen-denominated | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Securities held to maturity, fixed maturities, amortized cost | 21,676 | 23,448 | |
Allowance for Credit Loss | 3 | 3 | |
Net Carrying Amount | 21,673 | 23,445 | |
Gross Unrealized Gains | 4,868 | 5,625 | |
Gross Unrealized Losses | 0 | 0 | |
Fair Value | 26,541 | 29,070 | |
Municipalities | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Securities held to maturity, fixed maturities, amortized cost | 346 | 377 | |
Fair Value | 453 | 499 | |
Municipalities | Yen-denominated | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Securities held to maturity, fixed maturities, amortized cost | 346 | 377 | |
Allowance for Credit Loss | 0 | 0 | |
Net Carrying Amount | 346 | 377 | |
Gross Unrealized Gains | 107 | 122 | |
Gross Unrealized Losses | 0 | 0 | |
Fair Value | 453 | 499 | |
Public utilities | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Securities held to maturity, fixed maturities, amortized cost | 44 | 47 | |
Fair Value | 57 | 61 | |
Public utilities | Yen-denominated | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Securities held to maturity, fixed maturities, amortized cost | 45 | 48 | |
Allowance for Credit Loss | 1 | 1 | |
Net Carrying Amount | 44 | 47 | |
Gross Unrealized Gains | 13 | 14 | |
Gross Unrealized Losses | 0 | 0 | |
Fair Value | 57 | 61 | |
Sovereign and supranational | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Securities held to maturity, fixed maturities, amortized cost | 528 | 571 | |
Fair Value | 667 | 736 | |
Sovereign and supranational | Yen-denominated | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Securities held to maturity, fixed maturities, amortized cost | 533 | 577 | |
Allowance for Credit Loss | 5 | 6 | |
Net Carrying Amount | 528 | 571 | |
Gross Unrealized Gains | 139 | 165 | |
Gross Unrealized Losses | 0 | 0 | |
Fair Value | 667 | 736 | |
Other corporate | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Securities held to maturity, fixed maturities, amortized cost | 22 | 24 | |
Fair Value | 30 | 33 | |
Other corporate | Yen-denominated | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Securities held to maturity, fixed maturities, amortized cost | 22 | 24 | |
Allowance for Credit Loss | 0 | 0 | |
Net Carrying Amount | 22 | 24 | |
Gross Unrealized Gains | 8 | 9 | |
Gross Unrealized Losses | 0 | 0 | |
Fair Value | $ 30 | $ 33 | |
[1] | Net of allowance for credit losses |
INVESTMENTS - Equity Securities
INVESTMENTS - Equity Securities (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Equity Securities, FV-NI [Line Items] | ||
Fair Value | $ 1,461 | $ 1,283 |
Yen-denominated | ||
Equity Securities, FV-NI [Line Items] | ||
Fair Value | 753 | 680 |
Dollar-denominated | ||
Equity Securities, FV-NI [Line Items] | ||
Fair Value | 667 | 603 |
Other currencies | ||
Equity Securities, FV-NI [Line Items] | ||
Fair Value | $ 41 | $ 0 |
INVESTMENTS - Contractual and E
INVESTMENTS - Contractual and Economic Maturities of Investments in Fixed Maturities (Detail) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 | ||
Available for sale: | ||||
Due in one year or less | [1] | $ 914 | ||
Due after one year through five years | [1] | 8,302 | ||
Due after five years through 10 years | [1] | 13,291 | ||
Due after 10 years | [1] | 63,479 | ||
Mortgage- and asset-backed securities | [1] | 1,242 | ||
Total fixed maturity securities, available for sale, amortized cost | [1] | 87,228 | ||
Held to maturity: | ||||
Due in one year or less | [1] | 0 | ||
Due after one year through five years | [1] | 45 | ||
Due after five years through 10 years | [1] | 8,753 | ||
Due after 10 years | [1] | 13,815 | ||
Mortgage- and asset-backed securities | [1] | 0 | ||
Total fixed maturity securities, held to maturity, amortized cost | 22,613 | [1] | $ 24,464 | |
Available for sale: | ||||
Due in one year or less | 930 | |||
Due after one year through five years | 8,909 | |||
Due after five years through 10 years | 15,565 | |||
Due after 10 years | 74,026 | |||
Mortgage- and asset-backed securities | 1,292 | |||
Total fixed maturity securities, available for sale, fair value | 100,722 | 105,882 | ||
Held to maturity: | ||||
Due in one year or less | 0 | |||
Due after one year through five years | 49 | |||
Due after five years through 10 years | 10,207 | |||
Due after 10 years | 17,492 | |||
Mortgage- and asset-backed securities | 0 | |||
Total fixed maturity securities, held to maturity, fair value | $ 27,748 | $ 30,399 | ||
[1] | Net of allowance for credit losses |
INVESTMENTS - Investment Exposu
INVESTMENTS - Investment Exposures Individually Exceeded 10% of Shareholders' Equity (Details) - Japan National Government - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | ||
Summary of Investment Holdings [Line Items] | |||
Credit Rating | [1] | A+ | A+ |
Amortized Cost | [1] | $ 51,953 | $ 55,153 |
Fair Value | [1] | $ 60,106 | $ 64,657 |
[1] | Japan Government Bonds (JGBs) or JGB-backed securities |
INVESTMENTS - Information Regar
INVESTMENTS - Information Regarding Pretax Net Gains and Losses From Investments (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Gain (Loss) on Securities [Line Items] | ||||
Total net investment gains (losses) | $ (171) | $ 108 | $ 224 | $ (525) |
Credit Losses | ||||
Fixed maturity securities available for sale | 27 | 0 | 38 | (75) |
Fixed maturity securities held to maturity | 0 | 0 | 1 | 1 |
Commercial mortgage and other loans | (29) | 78 | 15 | (86) |
Impairment losses | 0 | 0 | (20) | 0 |
Loan commitments | 3 | 64 | 3 | (17) |
Reinsurance recoverable and other | 0 | 0 | (2) | (2) |
Total credit losses | 1 | 142 | 35 | (179) |
Derivatives and Other | ||||
Derivative gains (losses) | (174) | 138 | (557) | 173 |
Foreign currency gains (losses) | 135 | (186) | 783 | (356) |
Derivatives and other | ||||
Gain (Loss) on Securities [Line Items] | ||||
Total net investment gains (losses) | (39) | (48) | 226 | (183) |
Equity securities | ||||
Gain (Loss) on Securities [Line Items] | ||||
Total net investment gains (losses) | (119) | 12 | (17) | (106) |
Fixed maturity securities | ||||
Gain (Loss) on Securities [Line Items] | ||||
Gross gains from sales | 24 | 7 | 40 | 28 |
Gross losses from sales | (36) | 0 | (39) | (46) |
Foreign currency gains (losses) on sales and redemptions | (2) | (5) | (21) | (39) |
Total net investment gains (losses) | $ (14) | $ 2 | $ (20) | $ (57) |
INVESTMENTS - Net Effect on Sha
INVESTMENTS - Net Effect on Shareholders' Equity of Unrealized Gains and Losses from Investment Securities (Detail) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Investments [Abstract] | ||
Unrealized gains (losses) on securities available for sale | $ 13,494 | $ 14,290 |
Deferred income taxes | (3,763) | (3,929) |
Shareholders' equity, unrealized gains (losses) on fixed maturity securities | $ 9,731 | $ 10,361 |
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 | Sep. 30, 2021 | Dec. 31, 2020 |
Fixed maturity securities | ||
Investments, Unrealized Loss Position [Line Items] | ||
Total Fair Value | $ 7,946 | $ 10,781 |
Total Unrealized Losses | 235 | 481 |
Less than 12 months Fair Value | 2,609 | 6,902 |
Less than 12 months Unrealized Losses | 31 | 184 |
12 months or Longer Fair Value | 5,337 | 3,879 |
12 months or Longer Unrealized Losses | 204 | 297 |
Yen-denominated | Fixed maturity securities | Japan government and agencies | ||
Investments, Unrealized Loss Position [Line Items] | ||
Total Fair Value | 2,980 | 2,604 |
Total Unrealized Losses | 62 | 52 |
Less than 12 months Fair Value | 342 | 2,604 |
Less than 12 months Unrealized Losses | 2 | 52 |
12 months or Longer Fair Value | 2,638 | 0 |
12 months or Longer Unrealized Losses | 60 | 0 |
Yen-denominated | Fixed maturity securities | Municipalities | ||
Investments, Unrealized Loss Position [Line Items] | ||
Total Fair Value | 168 | 183 |
Total Unrealized Losses | 5 | 5 |
Less than 12 months Fair Value | 30 | 169 |
Less than 12 months Unrealized Losses | 0 | 4 |
12 months or Longer Fair Value | 138 | 14 |
12 months or Longer Unrealized Losses | 5 | 1 |
Yen-denominated | Fixed maturity securities | Mortgage- and asset-backed securities | ||
Investments, Unrealized Loss Position [Line Items] | ||
Total Fair Value | 34 | 37 |
Total Unrealized Losses | 1 | 1 |
Less than 12 months Fair Value | 0 | 37 |
Less than 12 months Unrealized Losses | 0 | 1 |
12 months or Longer Fair Value | 34 | 0 |
12 months or Longer Unrealized Losses | 1 | 0 |
Yen-denominated | Fixed maturity securities | Public utilities | ||
Investments, Unrealized Loss Position [Line Items] | ||
Total Fair Value | 242 | 135 |
Total Unrealized Losses | 2 | 1 |
Less than 12 months Fair Value | 182 | 135 |
Less than 12 months Unrealized Losses | 1 | 1 |
12 months or Longer Fair Value | 60 | 0 |
12 months or Longer Unrealized Losses | 1 | 0 |
Yen-denominated | Fixed maturity securities | Other corporate | ||
Investments, Unrealized Loss Position [Line Items] | ||
Total Fair Value | 558 | 613 |
Total Unrealized Losses | 22 | 37 |
Less than 12 months Fair Value | 106 | 290 |
Less than 12 months Unrealized Losses | 1 | 13 |
12 months or Longer Fair Value | 452 | 323 |
12 months or Longer Unrealized Losses | 21 | 24 |
Yen-denominated | Fixed maturity securities | Banks/financial institutions | ||
Investments, Unrealized Loss Position [Line Items] | ||
Total Fair Value | 1,824 | 1,809 |
Total Unrealized Losses | 66 | 102 |
Less than 12 months Fair Value | 735 | 765 |
Less than 12 months Unrealized Losses | 5 | 36 |
12 months or Longer Fair Value | 1,089 | 1,044 |
12 months or Longer Unrealized Losses | 61 | 66 |
Dollar-denominated | Fixed maturity securities | Municipalities | ||
Investments, Unrealized Loss Position [Line Items] | ||
Total Fair Value | 56 | 94 |
Total Unrealized Losses | 1 | 2 |
Less than 12 months Fair Value | 56 | 94 |
Less than 12 months Unrealized Losses | 1 | 2 |
12 months or Longer Fair Value | 0 | 0 |
12 months or Longer Unrealized Losses | 0 | 0 |
Dollar-denominated | Fixed maturity securities | Mortgage- and asset-backed securities | ||
Investments, Unrealized Loss Position [Line Items] | ||
Total Fair Value | 360 | |
Total Unrealized Losses | 5 | |
Less than 12 months Fair Value | 360 | |
Less than 12 months Unrealized Losses | 5 | |
12 months or Longer Fair Value | 0 | |
12 months or Longer Unrealized Losses | 0 | |
Dollar-denominated | Fixed maturity securities | Public utilities | ||
Investments, Unrealized Loss Position [Line Items] | ||
Total Fair Value | 195 | 326 |
Total Unrealized Losses | 4 | 15 |
Less than 12 months Fair Value | 108 | 208 |
Less than 12 months Unrealized Losses | 2 | 7 |
12 months or Longer Fair Value | 87 | 118 |
12 months or Longer Unrealized Losses | 2 | 8 |
Dollar-denominated | Fixed maturity securities | Other corporate | ||
Investments, Unrealized Loss Position [Line Items] | ||
Total Fair Value | 1,731 | 4,499 |
Total Unrealized Losses | 67 | 251 |
Less than 12 months Fair Value | 898 | 2,157 |
Less than 12 months Unrealized Losses | 17 | 59 |
12 months or Longer Fair Value | 833 | 2,342 |
12 months or Longer Unrealized Losses | 50 | 192 |
Dollar-denominated | Fixed maturity securities | Sovereign and supranational | ||
Investments, Unrealized Loss Position [Line Items] | ||
Total Fair Value | 6 | 39 |
Total Unrealized Losses | 4 | 3 |
Less than 12 months Fair Value | 6 | 39 |
Less than 12 months Unrealized Losses | 1 | 3 |
12 months or Longer Fair Value | 0 | 0 |
12 months or Longer Unrealized Losses | 3 | 0 |
Dollar-denominated | Fixed maturity securities | Banks/financial institutions | ||
Investments, Unrealized Loss Position [Line Items] | ||
Total Fair Value | 152 | 82 |
Total Unrealized Losses | 1 | 7 |
Less than 12 months Fair Value | 146 | 44 |
Less than 12 months Unrealized Losses | 1 | 1 |
12 months or Longer Fair Value | 6 | 38 |
12 months or Longer Unrealized Losses | $ 0 | $ 6 |
INVESTMENTS - Commercial Mortga
INVESTMENTS - Commercial Mortgage and Other Loans by Portfolio Segment (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | [1] |
Participating Mortgage Loans [Line Items] | |||||||
Commercial mortgage and other loans, gross | $ 11,553 | $ 10,734 | |||||
Percent of total commercial mortgage and other loans | 100.00% | 100.00% | |||||
Allowance for credit losses | $ (165) | $ (180) | |||||
Total net commercial mortgage and other loans | 11,388 | 10,554 | |||||
Transitional real estate loans | |||||||
Participating Mortgage Loans [Line Items] | |||||||
Commercial mortgage and other loans, gross | $ 5,211 | $ 5,294 | |||||
Percent of total commercial mortgage and other loans | 45.10% | 49.30% | |||||
Allowance for credit losses | $ (59) | $ (41) | $ (63) | $ (53) | $ (66) | $ (22) | |
Commercial mortgage loans | |||||||
Participating Mortgage Loans [Line Items] | |||||||
Commercial mortgage and other loans, gross | $ 1,861 | $ 1,720 | |||||
Percent of total commercial mortgage and other loans | 16.10% | 16.00% | |||||
Allowance for credit losses | $ (17) | (22) | $ (32) | (28) | (42) | (3) | |
Middle market loans | |||||||
Participating Mortgage Loans [Line Items] | |||||||
Commercial mortgage and other loans, gross | $ 4,481 | $ 3,720 | |||||
Percent of total commercial mortgage and other loans | 38.80% | 34.70% | |||||
Allowance for credit losses | $ (89) | $ (76) | $ (85) | $ (84) | $ (134) | $ (20) | |
Office | Transitional real estate loans | |||||||
Participating Mortgage Loans [Line Items] | |||||||
Commercial mortgage and other loans, gross | $ 1,944 | $ 2,115 | |||||
Percent of total commercial mortgage and other loans | 16.80% | 19.70% | |||||
Office | Commercial mortgage loans | |||||||
Participating Mortgage Loans [Line Items] | |||||||
Commercial mortgage and other loans, gross | $ 395 | $ 401 | |||||
Percent of total commercial mortgage and other loans | 3.40% | 3.70% | |||||
Retail | Transitional real estate loans | |||||||
Participating Mortgage Loans [Line Items] | |||||||
Commercial mortgage and other loans, gross | $ 140 | $ 125 | |||||
Percent of total commercial mortgage and other loans | 1.20% | 1.20% | |||||
Retail | Commercial mortgage loans | |||||||
Participating Mortgage Loans [Line Items] | |||||||
Commercial mortgage and other loans, gross | $ 334 | $ 340 | |||||
Percent of total commercial mortgage and other loans | 3.00% | 3.20% | |||||
Apartment/Multi-Family | Transitional real estate loans | |||||||
Participating Mortgage Loans [Line Items] | |||||||
Commercial mortgage and other loans, gross | $ 1,666 | $ 1,782 | |||||
Percent of total commercial mortgage and other loans | 14.40% | 16.60% | |||||
Apartment/Multi-Family | Commercial mortgage loans | |||||||
Participating Mortgage Loans [Line Items] | |||||||
Commercial mortgage and other loans, gross | $ 640 | $ 588 | |||||
Percent of total commercial mortgage and other loans | 5.50% | 5.50% | |||||
Industrial | Transitional real estate loans | |||||||
Participating Mortgage Loans [Line Items] | |||||||
Commercial mortgage and other loans, gross | $ 46 | $ 85 | |||||
Percent of total commercial mortgage and other loans | 0.40% | 0.80% | |||||
Industrial | Commercial mortgage loans | |||||||
Participating Mortgage Loans [Line Items] | |||||||
Commercial mortgage and other loans, gross | $ 478 | $ 391 | |||||
Percent of total commercial mortgage and other loans | 4.10% | 3.60% | |||||
Hospitality | Transitional real estate loans | |||||||
Participating Mortgage Loans [Line Items] | |||||||
Commercial mortgage and other loans, gross | $ 1,075 | $ 1,106 | |||||
Percent of total commercial mortgage and other loans | 9.30% | 10.30% | |||||
Other | Transitional real estate loans | |||||||
Participating Mortgage Loans [Line Items] | |||||||
Commercial mortgage and other loans, gross | $ 340 | $ 81 | |||||
Percent of total commercial mortgage and other loans | 3.00% | 0.70% | |||||
Other | Commercial mortgage loans | |||||||
Participating Mortgage Loans [Line Items] | |||||||
Commercial mortgage and other loans, gross | $ 14 | $ 0 | |||||
Percent of total commercial mortgage and other loans | 0.10% | 0.00% | |||||
[1] | U.S. GAAP guidance adopted as of January 1, 2020 has superseded these losses, included for comparative purposes only. |
INVESTMENTS - Transitional Real
INVESTMENTS - Transitional Real Estate Loans by Key Credit Quality Indicators (Details) - Transitional real estate loans $ in Millions | Sep. 30, 2021USD ($) |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2021 | $ 1,435 |
2020 | 403 |
2019 | 1,713 |
2018 | 1,219 |
2017 | 441 |
Total Financing Receivable | 5,211 |
Loan to Value Ratio, Zero to Fifty-nine Point Nine-nine Percent | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2021 | 449 |
2020 | 55 |
2019 | 439 |
2018 | 353 |
2017 | 77 |
Total Financing Receivable | 1,373 |
Loan to Value Ratio, Sixty to Sixty-nine Point Nine-nine Percent | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2021 | 417 |
2020 | 136 |
2019 | 831 |
2018 | 543 |
2017 | 182 |
Total Financing Receivable | 2,109 |
Loan to Value Ratio, Seventy to Seventy-nine Point Nine-nine Percent | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2021 | 569 |
2020 | 184 |
2019 | 443 |
2018 | 323 |
2017 | 182 |
Total Financing Receivable | 1,701 |
Loan-to-Value Ratio Eighty Percent and Above | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2021 | 0 |
2020 | 28 |
2019 | 0 |
2018 | 0 |
2017 | 0 |
Total Financing Receivable | $ 28 |
INVESTMENTS - Commercial Mort_2
INVESTMENTS - Commercial Mortgage Loans by Key Credit Quality Indicators (Details) - Commercial mortgage loans $ in Millions | Sep. 30, 2021USD ($) |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2021 | $ 208 |
2020 | 47 |
2019 | 646 |
2018 | 168 |
2017 | 68 |
Prior | 724 |
Total Financing Receivable | $ 1,861 |
Weighted Average Debt Service Coverage Ratio | 2.42 |
2021 | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Weighted Average Debt Service Coverage Ratio | 2.49 |
2020 | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Weighted Average Debt Service Coverage Ratio | 1.94 |
2019 | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Weighted Average Debt Service Coverage Ratio | 2.55 |
2018 | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Weighted Average Debt Service Coverage Ratio | 2.32 |
2017 | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Weighted Average Debt Service Coverage Ratio | 2.78 |
Prior | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Weighted Average Debt Service Coverage Ratio | 2.30 |
Loan to Value Ratio, Zero to Fifty-nine Point Nine-nine Percent | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2021 | $ 174 |
2020 | 47 |
2019 | 559 |
2018 | 168 |
2017 | 68 |
Prior | 561 |
Total Financing Receivable | $ 1,577 |
Weighted Average Debt Service Coverage Ratio | 2.51 |
Loan to Value Ratio, Sixty to Sixty-nine Point Nine-nine Percent | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2021 | $ 34 |
2020 | 0 |
2019 | 87 |
2018 | 0 |
2017 | 0 |
Prior | 138 |
Total Financing Receivable | $ 259 |
Weighted Average Debt Service Coverage Ratio | 1.97 |
Loan to Value Ratio, Seventy to Seventy-nine Point Nine-nine Percent | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2021 | $ 0 |
2020 | 0 |
2019 | 0 |
2018 | 0 |
2017 | 0 |
Prior | 25 |
Total Financing Receivable | $ 25 |
Weighted Average Debt Service Coverage Ratio | 1.67 |
INVESTMENTS - Middle Market Loa
INVESTMENTS - Middle Market Loans by Key Credit Quality Indicators (Details) - Middle market loans $ in Millions | Sep. 30, 2021USD ($) |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2021 | $ 757 |
2020 | 945 |
2019 | 1,033 |
2018 | 620 |
2017 | 375 |
Prior | 200 |
Revolving Loans | 551 |
Total Financing Receivable | 4,481 |
BBB Credit Rating | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2021 | 54 |
2020 | 78 |
2019 | 51 |
2018 | 39 |
2017 | 10 |
Prior | 3 |
Revolving Loans | 68 |
Total Financing Receivable | 303 |
BB Credit Rating | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2021 | 346 |
2020 | 347 |
2019 | 283 |
2018 | 163 |
2017 | 106 |
Prior | 27 |
Revolving Loans | 221 |
Total Financing Receivable | 1,493 |
B Credit Rating | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2021 | 357 |
2020 | 493 |
2019 | 635 |
2018 | 323 |
2017 | 154 |
Prior | 121 |
Revolving Loans | 170 |
Total Financing Receivable | 2,253 |
CCC Credit Rating | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2021 | 0 |
2020 | 19 |
2019 | 64 |
2018 | 81 |
2017 | 79 |
Prior | 49 |
Revolving Loans | 87 |
Total Financing Receivable | 379 |
CC Credit Rating | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2021 | 0 |
2020 | 0 |
2019 | 0 |
2018 | 14 |
2017 | 26 |
Prior | 0 |
Revolving Loans | 5 |
Total Financing Receivable | 45 |
C and Lower Credit Rating | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2021 | 0 |
2020 | 8 |
2019 | 0 |
2018 | 0 |
2017 | 0 |
Prior | 0 |
Revolving Loans | 0 |
Total Financing Receivable | $ 8 |
INVESTMENTS - Allowance for Loa
INVESTMENTS - Allowance for Loan Losses by Portfolio Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2019 | ||
Allowance for Loan Losses by Portfolio Segment [Roll Forward] | ||||||
Balance, beginning of period | $ (180) | |||||
Balance, end of period | $ (165) | (165) | ||||
Transitional real estate loans | ||||||
Allowance for Loan Losses by Portfolio Segment [Roll Forward] | ||||||
Balance, beginning of period | (41) | $ (66) | (63) | $ (22) | [1] | |
Cumulative Effect of Adoption of 2016-13 | $ (2) | |||||
(Addition to) release of allowance for credit losses | (18) | 13 | 4 | (29) | ||
Write-offs, net of recoveries | 0 | 0 | 0 | 0 | ||
Balance, end of period | (59) | (53) | (59) | (53) | ||
Commercial mortgage loans | ||||||
Allowance for Loan Losses by Portfolio Segment [Roll Forward] | ||||||
Balance, beginning of period | (22) | (42) | (32) | (3) | [1] | |
Cumulative Effect of Adoption of 2016-13 | (8) | |||||
(Addition to) release of allowance for credit losses | 5 | 14 | 15 | (17) | ||
Write-offs, net of recoveries | 0 | 0 | 0 | 0 | ||
Balance, end of period | (17) | (28) | (17) | (28) | ||
Middle market loans | ||||||
Allowance for Loan Losses by Portfolio Segment [Roll Forward] | ||||||
Balance, beginning of period | (76) | (134) | (85) | (20) | [1] | |
Cumulative Effect of Adoption of 2016-13 | (33) | |||||
(Addition to) release of allowance for credit losses | (13) | 59 | (4) | (31) | ||
Write-offs, net of recoveries | 0 | (9) | 0 | 0 | ||
Balance, end of period | (89) | (84) | (89) | (84) | ||
Held-to-maturity securities | ||||||
Allowance for Loan Losses by Portfolio Segment [Roll Forward] | ||||||
Balance, beginning of period | (8) | (9) | (10) | 0 | [1] | |
Cumulative Effect of Adoption of 2016-13 | (10) | |||||
(Addition to) release of allowance for credit losses | (1) | 0 | 1 | 1 | ||
Write-offs, net of recoveries | 0 | 0 | 0 | 0 | ||
Balance, end of period | (9) | (9) | (9) | (9) | ||
Available-for-sale securities | ||||||
Allowance for Loan Losses by Portfolio Segment [Roll Forward] | ||||||
Balance, beginning of period | (26) | (38) | (38) | 0 | [1] | |
Cumulative Effect of Adoption of 2016-13 | 0 | |||||
(Addition to) release of allowance for credit losses | 0 | (1) | 26 | (75) | ||
Write-offs, net of recoveries | 26 | 1 | 12 | 37 | ||
Balance, end of period | 0 | (38) | 0 | (38) | ||
Reinsurance recoverables | ||||||
Allowance for Loan Losses by Portfolio Segment [Roll Forward] | ||||||
Balance, beginning of period | (13) | (11) | (12) | 0 | [1] | |
Cumulative Effect of Adoption of 2016-13 | $ (11) | |||||
(Addition to) release of allowance for credit losses | 0 | 0 | (1) | 0 | ||
Write-offs, net of recoveries | 0 | 0 | 0 | 0 | ||
Balance, end of period | $ (13) | $ (11) | $ (13) | $ (11) | ||
[1] | U.S. GAAP guidance adopted as of January 1, 2020 has superseded these losses, included for comparative purposes only. |
INVESTMENTS - Other Investments
INVESTMENTS - Other Investments (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 | |
Investment Holdings [Line Items] | |||
Other investments | $ 3,612 | $ 2,429 | |
Policy loans | |||
Investment Holdings [Line Items] | |||
Other investments | 241 | 260 | |
Short-term investments | |||
Investment Holdings [Line Items] | |||
Other investments | [1] | 1,833 | 1,139 |
Limited partnerships | |||
Investment Holdings [Line Items] | |||
Other investments | 1,519 | 1,004 | |
Other | |||
Investment Holdings [Line Items] | |||
Other investments | $ 19 | $ 26 | |
[1] | Includes securities lending collateral |
INVESTMENTS - Investments in Co
INVESTMENTS - Investments in Consolidated Variable Interest Entities (Detail) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 | |
Variable Interest Entity [Line Items] | |||
Available for sale, fixed maturity securities, amortized cost | $ 87,228 | $ 91,630 | |
Available for sale, fixed maturity securities | 100,722 | 105,882 | |
Equity securities | 1,461 | 1,283 | |
Commercial mortgage and other loans | 11,388 | 10,554 | |
Commercial mortgage and other loans, fair value | 11,596 | 10,655 | |
Other investments | 3,612 | 2,429 | |
Asset derivatives | 745 | 583 | |
Assets, fair value | 110,969 | 114,028 | |
Liability derivatives | 1,270 | 697 | |
Liabilities | 127,045 | 131,527 | |
Liabilities, fair value | 1,270 | 697 | |
Variable Interest Entity, Consolidated | |||
Variable Interest Entity [Line Items] | |||
Available for sale, fixed maturity securities, amortized cost | [1] | 3,228 | 3,487 |
Available for sale, fixed maturity securities | 4,437 | 4,596 | |
Commercial mortgage and other loans | [1] | 9,543 | 8,964 |
Commercial mortgage and other loans, fair value | 9,723 | 9,040 | |
Other investments | [1],[2] | 1,272 | 826 |
Other investments, fair value | [2] | 1,272 | 826 |
Asset derivatives, amortized cost | [1],[3] | 99 | 133 |
Asset derivatives | [3] | 99 | 133 |
Assets, amortized cost | [1] | 14,142 | 13,410 |
Assets, fair value | 15,531 | 14,595 | |
Liability derivatives, amortized cost | [1],[3] | 356 | 231 |
Liability derivatives | [3] | 356 | 231 |
Liabilities | [1] | 356 | 231 |
Liabilities, fair value | $ 356 | $ 231 | |
[1] | Net of allowance for credit losses | ||
[2] | Consists entirely of alternative investments in limited partnerships | ||
[3] | Consists entirely of derivatives |
INVESTMENTS - Investments in Va
INVESTMENTS - Investments in Variable Interest Entities Not Consolidated (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 | |
Variable Interest Entity [Line Items] | |||
Available for sale, fixed maturity securities, amortized cost | $ 87,228 | $ 91,630 | |
Available for sale, fixed maturity securities | 100,722 | 105,882 | |
Securities held to maturity, fixed maturities, amortized cost | 22,622 | 24,474 | |
Held to maturity, fixed maturity securities, fair value | 27,748 | 30,399 | |
Other investments | 3,612 | 2,429 | |
Assets, fair value | 110,969 | 114,028 | |
Variable Interest Entity, Not Consolidated | |||
Variable Interest Entity [Line Items] | |||
Available for sale, fixed maturity securities, amortized cost | 4,990 | 5,477 | |
Available for sale, fixed maturity securities | 6,119 | 6,767 | |
Other investments | [1] | 247 | 178 |
Other investments, fair value | [1] | 247 | 178 |
Assets, amortized cost | 5,237 | 5,655 | |
Assets, fair value | $ 6,366 | $ 6,945 | |
[1] | Consists entirely of alternative investments in limited partnerships |
INVESTMENTS - Securities Lendin
INVESTMENTS - Securities Lending Transactions Accounted for as Secured Borrowings (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 | |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Securities Loaned, Including Not Subject to Master Netting Arrangement and Assets other than Securities Transferred | $ 2,849 | $ 964 | |
Gross amount of recognized liabilities for securities lending | 2,849 | 964 | |
Japan government and agencies | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Securities Loaned, Including Not Subject to Master Netting Arrangement and Assets other than Securities Transferred | 1,587 | 0 | |
Public utilities | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Securities Loaned, Including Not Subject to Master Netting Arrangement and Assets other than Securities Transferred | 27 | 57 | |
Sovereign and supranational | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Securities Loaned, Including Not Subject to Master Netting Arrangement and Assets other than Securities Transferred | 2 | 3 | |
Banks/financial institutions | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Securities Loaned, Including Not Subject to Master Netting Arrangement and Assets other than Securities Transferred | 81 | 63 | |
Other corporate | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Securities Loaned, Including Not Subject to Master Netting Arrangement and Assets other than Securities Transferred | 1,152 | 841 | |
Maturity Overnight and Continuous | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Securities Loaned, Including Not Subject to Master Netting Arrangement and Assets other than Securities Transferred | [1] | 1,262 | 964 |
Maturity Overnight and Continuous | Japan government and agencies | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Securities Loaned, Including Not Subject to Master Netting Arrangement and Assets other than Securities Transferred | [1] | 0 | 0 |
Maturity Overnight and Continuous | Public utilities | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Securities Loaned, Including Not Subject to Master Netting Arrangement and Assets other than Securities Transferred | [1] | 27 | 57 |
Maturity Overnight and Continuous | Sovereign and supranational | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Securities Loaned, Including Not Subject to Master Netting Arrangement and Assets other than Securities Transferred | [1] | 2 | 3 |
Maturity Overnight and Continuous | Banks/financial institutions | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Securities Loaned, Including Not Subject to Master Netting Arrangement and Assets other than Securities Transferred | [1] | 81 | 63 |
Maturity Overnight and Continuous | Other corporate | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Securities Loaned, Including Not Subject to Master Netting Arrangement and Assets other than Securities Transferred | [1] | 1,152 | 841 |
Maturity up to 30 Days | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Securities Loaned, Including Not Subject to Master Netting Arrangement and Assets other than Securities Transferred | 1,587 | 0 | |
Maturity up to 30 Days | Japan government and agencies | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Securities Loaned, Including Not Subject to Master Netting Arrangement and Assets other than Securities Transferred | 1,587 | 0 | |
Maturity up to 30 Days | Public utilities | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Securities Loaned, Including Not Subject to Master Netting Arrangement and Assets other than Securities Transferred | 0 | 0 | |
Maturity up to 30 Days | Sovereign and supranational | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Securities Loaned, Including Not Subject to Master Netting Arrangement and Assets other than Securities Transferred | 0 | 0 | |
Maturity up to 30 Days | Banks/financial institutions | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Securities Loaned, Including Not Subject to Master Netting Arrangement and Assets other than Securities Transferred | 0 | 0 | |
Maturity up to 30 Days | Other corporate | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Securities Loaned, Including Not Subject to Master Netting Arrangement and Assets other than Securities Transferred | $ 0 | $ 0 | |
[1] | The related loaned security, under the Company's U.S. securities lending program, can be returned to the Company at the transferee's discretion; therefore, they are classified as Overnight and Continuous. |
INVESTMENTS - Additional Inform
INVESTMENTS - Additional Information (Detail) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2021USD ($) | Sep. 30, 2020investment | Jun. 30, 2020investment | Sep. 30, 2021USD ($)investment | Dec. 31, 2020USD ($) | Jan. 01, 2020USD ($) | |
Schedule of Investments [Line Items] | ||||||
Held to maturity securities transferred to available for sale securities, number of investments | investment | 0 | 0 | 0 | |||
Equity securities, FV-NI, unrealized gain (loss) | $ 170 | $ (33) | ||||
Available for sale, fixed maturity securities, allowance for credit losses | 0 | 0 | $ 38 | |||
Transitional real estate loan commitments | 645 | 645 | ||||
Commercial mortgage loan commitments | 0 | 0 | ||||
Middle market loan program unfunded amount | 25 | 25 | ||||
Middle market loan commitments | 1,700 | 1,700 | ||||
Securities held to maturity, fixed maturities, amortized cost | 22,622 | 22,622 | 24,474 | |||
Loan Commitments, Allowance for Credit Loss | 32 | 32 | ||||
Limited partnerships investment commitments | $ 1,900 | $ 1,900 | ||||
Percentage that the lending policy requires that the fair value of the securities received as collateral be of the fair value of the loaned securities | 102.00% | 102.00% | ||||
Percentage that the lending policy requires that the fair value of the unrestricted cash received as collateral be of the fair value of the loaned securities | 100.00% | 100.00% | ||||
Securities Lending, Securities Received as Collateral | $ 7,969 | $ 7,969 | 6,654 | |||
Financing Receivable, Troubled Debt Restructuring | 0 | 0 | ||||
Repurchase Agreements and Repurchase-to-Maturity Transactions Outstanding | 0 | 0 | $ 0 | |||
Accounting Standards Update 2019-04 | ||||||
Schedule of Investments [Line Items] | ||||||
New Accounting Pronouncement Or Change In Accounting Principle Effect Of Adoption Reclassification From Held To Maturity To Available For Sale Debt Securities | $ 6,900 | |||||
New Accounting Pronouncement Or Change In Accounting Principle Effect Of Adoption Unrealized Gain Loss Net Of Tax Reclassification To Accumulated Other Comprehensive Income | $ 848 | |||||
Zero-credit-loss expectation | Japan government and agencies | ||||||
Schedule of Investments [Line Items] | ||||||
Securities held to maturity, fixed maturities, amortized cost | $ 21,500 | $ 21,500 | ||||
CALIFORNIA | Commercial Mortgage and Transitional Real Estate Loans | Mortgages | ||||||
Schedule of Investments [Line Items] | ||||||
Concentration Risk, Percentage | 18.00% | |||||
TEXAS | Commercial Mortgage and Transitional Real Estate Loans | Mortgages | ||||||
Schedule of Investments [Line Items] | ||||||
Concentration Risk, Percentage | 13.00% | |||||
FLORIDA | Commercial Mortgage and Transitional Real Estate Loans | Mortgages | ||||||
Schedule of Investments [Line Items] | ||||||
Concentration Risk, Percentage | 9.00% |
DERIVATIVE INSTRUMENTS - Additi
DERIVATIVE INSTRUMENTS - Additional Information (Detail) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||
Derivative, Notional Amount | $ 41,694 | $ 58,656 |
Derivative, net liability position, aggregate fair value | 694 | $ 268 |
Additional Collateral, Aggregate Fair Value | 169 | |
Derivative Instruments, Gain (Loss) Reclassification from Accumulated OCI to Income, Estimated Net Amount to be Transferred | $ (5) | |
Maximum Length of Time Hedged in Cash Flow Hedge | 5 years | |
Senior notes | Interest rate swaps | ||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||
Derivative, Notional Amount | $ 2,300 |
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 | Sep. 30, 2021 | Dec. 31, 2020 |
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 41,694 | $ 58,656 |
Derivative asset, fair value, gross asset including not subject to master netting arrangement | 745 | 583 |
Derivative liability, fair value, gross liability including not subject to master netting arrangement | 1,270 | 697 |
Asset derivatives fair value | 646 | 450 |
Liability derivatives fair value | 914 | 466 |
Cash flow hedges | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 18 | 18 |
Asset derivatives fair value | 0 | 0 |
Liability derivatives fair value | 2 | 1 |
Cash flow hedges | Foreign currency swaps | Variable Interest Entity, Consolidated | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 18 | 18 |
Asset derivatives fair value | 0 | 0 |
Liability derivatives fair value | 2 | 1 |
Fair value hedges | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 8,472 | 8,929 |
Asset derivatives fair value | 1 | 2 |
Liability derivatives fair value | 3 | 0 |
Fair value hedges | Foreign currency forwards | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 62 | 64 |
Asset derivatives fair value | 0 | 2 |
Liability derivatives fair value | 3 | 0 |
Fair value hedges | Foreign currency options | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 8,410 | 8,865 |
Asset derivatives fair value | 1 | 0 |
Liability derivatives fair value | 0 | 0 |
Net investment hedge | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 6,950 | 7,037 |
Asset derivatives fair value | 240 | 15 |
Liability derivatives fair value | 0 | 84 |
Net investment hedge | Foreign currency forwards | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 4,996 | 5,010 |
Asset derivatives fair value | 240 | 14 |
Liability derivatives fair value | 0 | 84 |
Net investment hedge | Foreign currency options | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 1,954 | 2,027 |
Asset derivatives fair value | 0 | 1 |
Liability derivatives fair value | 0 | 0 |
Non-qualifying strategies | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 26,254 | 42,672 |
Asset derivatives fair value | 504 | 566 |
Liability derivatives fair value | 1,265 | 612 |
Non-qualifying strategies | Foreign currency swaps | Variable Interest Entity, Consolidated | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 3,141 | 2,857 |
Asset derivatives fair value | 99 | 133 |
Liability derivatives fair value | 354 | 230 |
Non-qualifying strategies | Foreign currency swaps | Consolidated Entity Excluding Variable Interest Entities (VIE) | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 2,250 | 2,250 |
Asset derivatives fair value | 52 | 47 |
Liability derivatives fair value | 22 | 81 |
Non-qualifying strategies | Foreign currency forwards | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 14,153 | 26,528 |
Asset derivatives fair value | 353 | 386 |
Liability derivatives fair value | 872 | 301 |
Non-qualifying strategies | Foreign currency options | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 3,165 | 11,037 |
Asset derivatives fair value | 0 | 0 |
Liability derivatives fair value | 0 | 0 |
Non-qualifying strategies | Interest rate swaps | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 3,500 | 0 |
Asset derivatives fair value | 0 | 0 |
Liability derivatives fair value | 16 | 0 |
Non-qualifying strategies | Forward bond purchase commitment | Variable Interest Entity, Consolidated | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 45 | 0 |
Asset derivatives fair value | 0 | 0 |
Liability derivatives fair value | $ 1 | $ 0 |
DERIVATIVE INSTRUMENTS - Gains
DERIVATIVE INSTRUMENTS - Gains (Losses) Recognized on Fair Value Hedging Relationships (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | ||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Total gains (losses) recognized for derivatives | $ (6) | $ (1) | $ (21) | $ (19) | |
Gains (losses) on derivatives excluded from effectiveness testing | [1] | (5) | (2) | (15) | (11) |
Gains (losses) on derivatives included in effectiveness testing | [2] | (1) | 1 | (6) | (8) |
Gains (losses) recognized for hedged items | [2] | 1 | (1) | 9 | 9 |
Net realized gains (losses) recognized for fair value hedge | 0 | 0 | 3 | 1 | |
Fixed maturity securities | Foreign currency forwards | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Total gains (losses) recognized for derivatives | (1) | 1 | (5) | (15) | |
Gains (losses) on derivatives excluded from effectiveness testing | [1] | 0 | 0 | 0 | (8) |
Gains (losses) on derivatives included in effectiveness testing | [2] | (1) | 1 | (5) | (7) |
Gains (losses) recognized for hedged items | [2] | 1 | (1) | 5 | 8 |
Net realized gains (losses) recognized for fair value hedge | 0 | 0 | 0 | 1 | |
Fixed maturity securities | Foreign currency options | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Total gains (losses) recognized for derivatives | (5) | (2) | (16) | (4) | |
Gains (losses) on derivatives excluded from effectiveness testing | [1] | (5) | (2) | (15) | (3) |
Gains (losses) on derivatives included in effectiveness testing | [2] | 0 | 0 | (1) | (1) |
Gains (losses) recognized for hedged items | [2] | 0 | 0 | 4 | 1 |
Net realized gains (losses) recognized for fair value hedge | $ 0 | $ 0 | $ 3 | $ 0 | |
[1] | Gains (losses) excluded from effectiveness testing includes the forward point on foreign currency forwards and time value change on foreign currency options which are reported in the consolidated statement of earnings as net investment gains (losses). It also includes the change in the fair value of the interest rate swaptions related to the time value of the swaptions which is recognized as a component of other comprehensive income (loss). | ||||
[2] | Gains and losses on foreign currency forwards and options and related hedged items are reported in the consolidated statement of earnings as net investment gains (losses). For interest rate swaptions and related hedged items, gains and losses included in the hedge assessment, premium amortization and time value amortization while the hedge items are still outstanding are reported within net investment income. The time value gains and losses for interest rate swaptions when the related hedged items are redeemed are reported in net investment gains and losses consistent with the impact of the hedged item. For the three-month and nine-month periods ended September 30, 2021 and 2020, gains and losses included in the hedge assessment on interest rate swaptions and related hedged items were immaterial. |
DERIVATIVE INSTRUMENTS - Schedu
DERIVATIVE INSTRUMENTS - Schedule of Interest Rate Fair Value Hedges Hedged Items (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Derivative, Notional Amount | $ 41,694 | $ 58,656 | |
Fair value hedges | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Derivative, Notional Amount | 8,472 | 8,929 | |
Fixed maturity securities | Interest rate swaptions | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Carrying Amount of Hedged Assets/ (Liabilities) | [1] | 3,261 | 4,331 |
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of Hedged Assets/(Liabilities) | $ 216 | $ 237 | |
[1] | The balance includes hedging adjustment on discontinued hedging relationships of $216 in 2021 and $237 in 2020. |
DERIVATIVE INSTRUMENTS - Deriva
DERIVATIVE INSTRUMENTS - Derivatives and Hedging Instruments Gain (Loss) Summary (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||
Gains (losses) recognized in other comprehensive income on derivative | $ 2 | $ 2 | $ 3 | $ (3) | |||||
Unrealized foreign currency translation gains (losses) during period | (93) | 172 | (646) | 329 | |||||
Derivative and non-derivative hedging instruments, gain (loss) recognized in other comprehensive income, before tax | [1] | 98 | (140) | 636 | (241) | ||||
Net investment income | |||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||
Gains (losses) recognized in income on derivative | [2] | (1) | 0 | (1) | (2) | ||||
Net investment gains (losses) | |||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||
Gains (losses) recognized in income on derivative | (174) | 138 | (557) | 173 | |||||
Reclassification Out Of Accumulated Other Comprehensive Income | |||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||
Derivative instruments, cash flow hedges, gains (losses) reclassified from accumulated other comprehensive income into earnings | (1) | (3) | |||||||
Derivative instruments, fair value hedges excluded component, gains (losses) reclassified from accumulated other comprehensive income into earnings | (1) | (1) | |||||||
Cash flow hedges | |||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||
Gains (losses) recognized in other comprehensive income on derivative | [1] | 1 | 2 | 2 | (4) | ||||
Cash flow hedges | Net investment income | |||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||
Gains (losses) recognized in income on derivative | [2] | 0 | 0 | 0 | (1) | ||||
Cash flow hedges | Net investment gains (losses) | |||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||
Gains (losses) recognized in income on derivative | (1) | [3] | 0 | [3] | (3) | [4] | 0 | [4] | |
Cash flow hedges | Foreign currency swaps | Variable Interest Entity | |||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||
Gains (losses) recognized in other comprehensive income on derivative | [1] | 1 | 2 | 2 | (4) | ||||
Cash flow hedges | Foreign currency swaps | Variable Interest Entity | Net investment income | |||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||
Gains (losses) recognized in income on derivative | [2] | 0 | 0 | 0 | (1) | ||||
Cash flow hedges | Foreign currency swaps | Variable Interest Entity | Net investment gains (losses) | |||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||
Gains (losses) recognized in income on derivative | (1) | 0 | (3) | 0 | |||||
Fair value hedges | |||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||
Gains (losses) recognized in other comprehensive income on derivative | [1] | 1 | 0 | 1 | 1 | ||||
Fair value hedges | Net investment income | |||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||
Gains (losses) recognized in income on derivative | [2] | (1) | 0 | (1) | (1) | ||||
Fair value hedges | Net investment gains (losses) | |||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||
Gains (losses) recognized in income on derivative | (6) | (2) | (13) | (10) | |||||
Fair value hedges | Foreign currency forwards | Net investment gains (losses) | |||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||
Gains (losses) recognized in income on derivative | 0 | [3] | 0 | [3] | 0 | [4] | (7) | [4] | |
Fair value hedges | Foreign currency options | Net investment gains (losses) | |||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||
Gains (losses) recognized in income on derivative | (5) | [3] | (2) | [3] | (12) | [4] | (3) | [4] | |
Fair value hedges | Interest rate swaptions | |||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||
Gains (losses) recognized in other comprehensive income on derivative | [1] | 1 | [3] | 0 | [3] | 1 | [4] | 1 | [4] |
Fair value hedges | Interest rate swaptions | Net investment income | |||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||
Gains (losses) recognized in income on derivative | [2] | (1) | [3] | 0 | [3] | (1) | [4] | (1) | [4] |
Fair value hedges | Interest rate swaptions | Net investment gains (losses) | |||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||
Gains (losses) recognized in income on derivative | (1) | [3] | 0 | [3] | (1) | [4] | 0 | [4] | |
Net investment hedge | |||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||
Unrealized foreign currency translation gains (losses) during period | [1] | 96 | (142) | 633 | (238) | ||||
Net investment hedge | Net investment gains (losses) | |||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||
Gains (losses) recognized in income on derivative | (43) | (18) | 3 | 133 | |||||
Net investment hedge | Foreign currency forwards | |||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||
Unrealized foreign currency translation gains (losses) during period | [1] | 55 | (91) | 396 | (166) | ||||
Net investment hedge | Foreign currency forwards | Net investment gains (losses) | |||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||
Gains (losses) recognized in income on derivative | (42) | (16) | 7 | 136 | |||||
Net investment hedge | Foreign currency options | |||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||
Unrealized foreign currency translation gains (losses) during period | [1] | 0 | 0 | 0 | 0 | ||||
Net investment hedge | Foreign currency options | Net investment gains (losses) | |||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||
Gains (losses) recognized in income on derivative | (1) | (2) | (4) | (3) | |||||
Net investment hedge | Non-derivative hedging instruments | |||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||
Unrealized foreign currency translation gains (losses) during period | [1] | 41 | (51) | 237 | (72) | ||||
Net investment hedge | Non-derivative hedging instruments | Net investment gains (losses) | |||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||
Gains (losses) recognized in income on derivative | 0 | 0 | 0 | 0 | |||||
Non-qualifying strategies | Net investment gains (losses) | |||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||
Gains (losses) recognized in income on derivative | (124) | 158 | (544) | 50 | |||||
Non-qualifying strategies | Foreign currency swaps | Variable Interest Entity | Net investment gains (losses) | |||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||
Gains (losses) recognized in income on derivative | (36) | 40 | (115) | (185) | |||||
Non-qualifying strategies | Foreign currency swaps | Consolidated Entity Excluding Variable Interest Entities (VIE) | Net investment gains (losses) | |||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||
Gains (losses) recognized in income on derivative | 6 | (27) | 105 | 54 | |||||
Non-qualifying strategies | Foreign currency forwards | Net investment gains (losses) | |||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||
Gains (losses) recognized in income on derivative | (84) | 139 | (527) | 133 | |||||
Non-qualifying strategies | Foreign currency options | Net investment gains (losses) | |||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||
Gains (losses) recognized in income on derivative | 0 | 4 | 1 | (1) | |||||
Non-qualifying strategies | Interest rate swaps | Net investment gains (losses) | |||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||
Gains (losses) recognized in income on derivative | (9) | 0 | (6) | 49 | |||||
Non-qualifying strategies | Forward bond purchase commitment | Variable Interest Entity | Net investment gains (losses) | |||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||
Gains (losses) recognized in income on derivative | $ (1) | $ 2 | $ (2) | $ 0 | |||||
[1] | Gains and losses on cash flow hedges and the change in the fair value of interest rate swaptions related to the time value of the swaptions in fair value hedges are recorded as unrealized gains (losses). Gains and losses on net investment hedges related to changes in foreign currency spot rates are recorded in the unrealized foreign currency translation gains (losses) line in the consolidated statement of comprehensive income (loss). | ||||||||
[2] | Interest expense/income on cash flow hedges are recorded in net investment income. For interest rate swaptions classified as fair value hedges, the change in the time value of the swaptions is recognized in other comprehensive income (loss) and amortized into net investment income over its legal term. If the swaption is early terminated but the hedge item is still outstanding, the amortization of disposal amount of the swaptions is recorded in net investment income over the remaining life of the hedged items. | ||||||||
[3] | Impact of cash flow hedges reported as net investment gains (losses) includes $1 of losses reclassified from accumulated other comprehensive income (loss) into earnings during the three-month period ended September 30, 2021. In addition, $1 of losses and an immaterial amount were reclassified from accumulated other comprehensive income (loss) into earnings during the three-month periods ended September 30, 2021 and 2020, respectively, related to fair value hedges excluded component . Impact shown net of effect of hedged items (see Fair Value Hedges section of this Note 4 for further detail). | ||||||||
[4] | Impact of cash flow hedges reported as net investment gains (losses) includes $3 of losses reclassified from accumulated other comprehensive income (loss) into earnings during the nine-month period ended September 30, 2021. In addition, $1 of losses and an immaterial amount were reclassified from accumulated other comprehensive income (loss) into earnings during the nine-month periods ended September 30, 2021 and 2020, respectively, related to fair value hedges excluded component. Impact shown net of effect of hedged items (see Fair Value Hedges section of this Note 4 for further detail). |
DERIVATIVE INSTRUMENTS - Offset
DERIVATIVE INSTRUMENTS - Offsetting of Financial Assets and Derivative Assets (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Offsetting Assets [Line Items] | ||
Gross amount of recognized derivative assets | $ 646 | $ 450 |
Gross amount of liabilities offset in balance sheet | 0 | 0 |
Net amount of derivative assets presented in balance sheet | 646 | 450 |
Financial instruments, amount not offset | (375) | (295) |
Derivative, collateral, obligation to return securities | (21) | (73) |
Derivative, collateral, obligation to return cash | (249) | (76) |
Derivative asset, fair value, amount offset against collateral, subject to master netting agreement | 1 | 6 |
Derivative asset, not subject to master netting arrangement | 99 | 133 |
Derivative asset, fair value, amount offset against collateral, not subject to master netting agreement | 99 | 133 |
Derivative asset, fair value, gross asset including not subject to master netting arrangement | 745 | 583 |
Net amount of derivative assets presented in balance sheet | 745 | 583 |
Derivative asset, fair value, amount offset against collateral | 100 | 139 |
Gross amounts of recognized financial instruments | 3,572 | 1,523 |
Gross amounts offset in balance sheet | 0 | 0 |
Net amounts of assets presented in balance sheet | 3,572 | 1,523 |
Carrying value of financial instruments not offset in balance sheet | (375) | (295) |
Securities collateral, not offset in balance sheet | (21) | (73) |
Cash collateral, not offset in balance sheet | (3,076) | (1,016) |
Financial instruments, amount of assets offset against collateral | 100 | 139 |
Over the Counter - Bilateral | ||
Offsetting Assets [Line Items] | ||
Gross amount of recognized derivative assets | 646 | 450 |
Gross amount of liabilities offset in balance sheet | 0 | 0 |
Net amount of derivative assets presented in balance sheet | 646 | 450 |
Financial instruments, amount not offset | (375) | (295) |
Derivative, collateral, obligation to return securities | (21) | (73) |
Derivative, collateral, obligation to return cash | (249) | (76) |
Derivative asset, fair value, amount offset against collateral, subject to master netting agreement | 1 | 6 |
Derivative asset, not subject to master netting arrangement | 99 | 133 |
Derivative asset, fair value, amount offset against collateral, not subject to master netting agreement | 99 | 133 |
Securities Lending and Similar Arrangements | ||
Offsetting Assets [Line Items] | ||
Gross amounts of recognized financial instruments | 2,827 | 940 |
Gross amounts offset in balance sheet | 0 | 0 |
Net amounts of assets presented in balance sheet | 2,827 | 940 |
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 | (2,827) | (940) |
Financial instruments, amount of assets offset against collateral | $ 0 | $ 0 |
DERIVATIVE INSTRUMENTS - Offs_2
DERIVATIVE INSTRUMENTS - Offsetting of Financial Liabilities and Derivative Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Offsetting Liabilities [Line Items] | ||
Gross amount of recognized derivative liabilities | $ 914 | $ 466 |
Gross amount of assets offset in balance sheet | 0 | 0 |
Derivative liability, fair value, amount not offset against collateral | 914 | 466 |
Financial instruments, amount not offset | (375) | (295) |
Derivative, collateral, right to reclaim securities | (491) | (43) |
Derivative, collateral, right to reclaim cash | (34) | (69) |
Derivative liability, fair value, amount offset against collateral, subject to master netting agreement | 14 | 59 |
Derivative liability, not subject to master netting arrangement | 356 | 231 |
Derivative liability, fair value, amount offset against collateral, not subject to master netting agreement | 356 | 231 |
Derivative liability, fair value, gross liability including not subject to master netting arrangement | 1,270 | 697 |
Net amount of derivative liabilities presented in balance sheet | 1,270 | 697 |
Derivative liability, fair value, amount offset against collateral | 370 | 290 |
Gross Amounts of Recognized Financial Instruments, Offsetting Liabilities | 4,119 | 1,661 |
Gross Amounts Offset in Statement of Financial Position, Offsetting Liabilities | 0 | 0 |
Net Amounts of Financial Instruments Presented in Balance Sheet, Offsetting Liabilities | 4,119 | 1,661 |
Carrying value of financial instruments, liabilities not offset in balance sheet | (3,202) | (1,235) |
Securities Collateral, Liabilities Not Offset in Balance Sheet | (491) | (43) |
Cash Collateral, Liabilities Not Offset in Balance Sheet | (34) | (69) |
Financial instruments, amount of liabilities offset against collateral | 392 | 314 |
Over the Counter - Bilateral | ||
Offsetting Liabilities [Line Items] | ||
Gross amount of recognized derivative liabilities | 898 | 466 |
Gross amount of assets offset in balance sheet | 0 | 0 |
Derivative liability, fair value, amount not offset against collateral | 898 | 466 |
Financial instruments, amount not offset | (375) | (295) |
Derivative, collateral, right to reclaim securities | (491) | (43) |
Derivative, collateral, right to reclaim cash | (19) | (69) |
Derivative liability, fair value, amount offset against collateral, subject to master netting agreement | 13 | 59 |
Derivative liability, not subject to master netting arrangement | 356 | 231 |
Derivative liability, fair value, amount offset against collateral, not subject to master netting agreement | 356 | 231 |
Securities Lending and Similar Arrangements | ||
Offsetting Liabilities [Line Items] | ||
Gross Amounts of Recognized Financial Instruments, Offsetting Liabilities | 2,849 | 964 |
Gross Amounts Offset in Statement of Financial Position, Offsetting Liabilities | 0 | 0 |
Net Amounts of Financial Instruments Presented in Balance Sheet, Offsetting Liabilities | 2,849 | 964 |
Carrying value of financial instruments, liabilities not offset in balance sheet | (2,827) | (940) |
Securities Collateral, Liabilities Not Offset in Balance Sheet | 0 | 0 |
Cash Collateral, Liabilities Not Offset in Balance Sheet | 0 | 0 |
Financial instruments, amount of liabilities offset against collateral | 22 | $ 24 |
Other the Counter - Cleared | ||
Offsetting Liabilities [Line Items] | ||
Gross amount of recognized derivative liabilities | 16 | |
Gross amount of assets offset in balance sheet | 0 | |
Derivative liability, fair value, amount not offset against collateral | 16 | |
Financial instruments, amount not offset | 0 | |
Derivative, collateral, right to reclaim securities | 0 | |
Derivative, collateral, right to reclaim cash | (15) | |
Derivative liability, fair value, amount offset against collateral, subject to master netting agreement | $ 1 |
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 | Sep. 30, 2021 | Dec. 31, 2020 |
Assets: | ||
Available for sale, fixed maturity securities | $ 100,722 | $ 105,882 |
Equity securities | 1,461 | 1,283 |
Other investments | 1,833 | 1,139 |
Cash and cash equivalents | 6,208 | 5,141 |
Asset derivatives | 745 | 583 |
Total assets | 110,969 | 114,028 |
Liabilities: | ||
Liability derivatives | 1,270 | 697 |
Total liabilities | 1,270 | 697 |
Foreign currency swaps | ||
Assets: | ||
Asset derivatives | 151 | 180 |
Liabilities: | ||
Liability derivatives | 378 | 312 |
Foreign currency forwards | ||
Assets: | ||
Asset derivatives | 593 | 402 |
Liabilities: | ||
Liability derivatives | 875 | 385 |
Foreign currency options | ||
Assets: | ||
Asset derivatives | 1 | 1 |
Interest rate swaps | ||
Liabilities: | ||
Liability derivatives | 16 | |
Forward bond purchase commitment | ||
Liabilities: | ||
Liability derivatives | 1 | |
Government and agencies | ||
Assets: | ||
Available for sale, fixed maturity securities | 35,226 | 37,350 |
Municipalities | ||
Assets: | ||
Available for sale, fixed maturity securities | 2,937 | 3,018 |
Mortgage- and asset-backed securities | ||
Assets: | ||
Available for sale, fixed maturity securities | 1,292 | 1,038 |
Public utilities | ||
Assets: | ||
Available for sale, fixed maturity securities | 10,315 | 10,817 |
Sovereign and supranational | ||
Assets: | ||
Available for sale, fixed maturity securities | 1,142 | 1,382 |
Banks/financial institutions | ||
Assets: | ||
Available for sale, fixed maturity securities | 11,742 | 12,060 |
Other corporate | ||
Assets: | ||
Available for sale, fixed maturity securities | 38,068 | 40,217 |
Level 1 | ||
Assets: | ||
Available for sale, fixed maturity securities | 33,903 | 36,032 |
Equity securities | 1,210 | 1,095 |
Other investments | 1,833 | 1,139 |
Cash and cash equivalents | 6,208 | 5,141 |
Asset derivatives | 0 | 0 |
Total assets | 43,154 | 43,407 |
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 |
Level 1 | Interest rate swaps | ||
Liabilities: | ||
Liability derivatives | 0 | |
Level 1 | Forward bond purchase commitment | ||
Liabilities: | ||
Liability derivatives | 0 | |
Level 1 | Government and agencies | ||
Assets: | ||
Available for sale, fixed maturity securities | 33,903 | 36,032 |
Level 1 | Municipalities | ||
Assets: | ||
Available for sale, fixed maturity securities | 0 | 0 |
Level 1 | Mortgage- and asset-backed securities | ||
Assets: | ||
Available for sale, fixed maturity securities | 0 | 0 |
Level 1 | Public utilities | ||
Assets: | ||
Available for sale, fixed maturity securities | 0 | 0 |
Level 1 | Sovereign and supranational | ||
Assets: | ||
Available for sale, fixed maturity securities | 0 | 0 |
Level 1 | Banks/financial institutions | ||
Assets: | ||
Available for sale, fixed maturity securities | 0 | 0 |
Level 1 | Other corporate | ||
Assets: | ||
Available for sale, fixed maturity securities | 0 | 0 |
Level 2 | ||
Assets: | ||
Available for sale, fixed maturity securities | 65,649 | 68,833 |
Equity securities | 90 | 86 |
Other investments | 0 | 0 |
Cash and cash equivalents | 0 | 0 |
Asset derivatives | 646 | 450 |
Total assets | 66,385 | 69,369 |
Liabilities: | ||
Total liabilities | 914 | 466 |
Level 2 | Foreign currency swaps | ||
Assets: | ||
Asset derivatives | 52 | 47 |
Liabilities: | ||
Liability derivatives | 22 | 81 |
Level 2 | Foreign currency forwards | ||
Assets: | ||
Asset derivatives | 593 | 402 |
Liabilities: | ||
Liability derivatives | 875 | 385 |
Level 2 | Foreign currency options | ||
Assets: | ||
Asset derivatives | 1 | 1 |
Level 2 | Interest rate swaps | ||
Liabilities: | ||
Liability derivatives | 16 | |
Level 2 | Forward bond purchase commitment | ||
Liabilities: | ||
Liability derivatives | 1 | |
Level 2 | Government and agencies | ||
Assets: | ||
Available for sale, fixed maturity securities | 1,323 | 1,318 |
Level 2 | Municipalities | ||
Assets: | ||
Available for sale, fixed maturity securities | 2,937 | 3,018 |
Level 2 | Mortgage- and asset-backed securities | ||
Assets: | ||
Available for sale, fixed maturity securities | 1,042 | 814 |
Level 2 | Public utilities | ||
Assets: | ||
Available for sale, fixed maturity securities | 9,792 | 10,395 |
Level 2 | Sovereign and supranational | ||
Assets: | ||
Available for sale, fixed maturity securities | 1,097 | 1,334 |
Level 2 | Banks/financial institutions | ||
Assets: | ||
Available for sale, fixed maturity securities | 11,696 | 12,036 |
Level 2 | Other corporate | ||
Assets: | ||
Available for sale, fixed maturity securities | 37,762 | 39,918 |
Level 3 | ||
Assets: | ||
Available for sale, fixed maturity securities | 1,170 | 1,017 |
Equity securities | 161 | 102 |
Other investments | 0 | 0 |
Cash and cash equivalents | 0 | 0 |
Asset derivatives | 99 | 133 |
Total assets | 1,430 | 1,252 |
Liabilities: | ||
Total liabilities | 356 | 231 |
Level 3 | Foreign currency swaps | ||
Assets: | ||
Asset derivatives | 99 | 133 |
Liabilities: | ||
Liability derivatives | 356 | 231 |
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 |
Level 3 | Interest rate swaps | ||
Liabilities: | ||
Liability derivatives | 0 | |
Level 3 | Forward bond purchase commitment | ||
Liabilities: | ||
Liability derivatives | 0 | |
Level 3 | Government and agencies | ||
Assets: | ||
Available for sale, fixed maturity securities | 0 | 0 |
Level 3 | Municipalities | ||
Assets: | ||
Available for sale, fixed maturity securities | 0 | 0 |
Level 3 | Mortgage- and asset-backed securities | ||
Assets: | ||
Available for sale, fixed maturity securities | 250 | 224 |
Level 3 | Public utilities | ||
Assets: | ||
Available for sale, fixed maturity securities | 523 | 422 |
Level 3 | Sovereign and supranational | ||
Assets: | ||
Available for sale, fixed maturity securities | 45 | 48 |
Level 3 | Banks/financial institutions | ||
Assets: | ||
Available for sale, fixed maturity securities | 46 | 24 |
Level 3 | Other corporate | ||
Assets: | ||
Available for sale, fixed maturity securities | $ 306 | $ 299 |
FAIR VALUE MEASUREMENTS - Fai_2
FAIR VALUE MEASUREMENTS - Fair Value Hierarchy Levels of Assets and Liabilities Carried at Cost or Amortized Cost (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Other investments | $ 3,612 | $ 2,429 | ||
Assets: | ||||
Securities held to maturity, fixed maturities, amortized cost | 22,622 | 24,474 | ||
Held to maturity, fixed maturity securities, fair value | 27,748 | 30,399 | ||
Commercial mortgage and other loans | 11,388 | 10,554 | ||
Commercial mortgage and other loans, fair value | 11,596 | 10,655 | ||
Other investments carried at amortized cost | 19 | [1] | 26 | [2] |
Other investments carried at amortized cost, fair value | 19 | [1] | 26 | [2] |
Total financial instruments assets not carried at fair value | 34,020 | 35,044 | ||
Assets fair value disclosure financial instruments carried at cost | 39,363 | 41,080 | ||
Liabilities: | ||||
Other policyholders’ funds | 7,286 | 7,824 | ||
Other policyholders' funds fair value disclosure | 7,175 | 7,709 | ||
Notes payable | 7,937 | 7,745 | ||
Notes payable, fair value disclosure | 8,682 | 8,684 | ||
Total financial instrument liabilities not carried at fair value | 15,223 | 15,569 | ||
Liabilities fair value disclosure financial instruments carried at cost | 15,857 | 16,393 | ||
Government and agencies | ||||
Assets: | ||||
Securities held to maturity, fixed maturities, amortized cost | 21,673 | 23,445 | ||
Held to maturity, fixed maturity securities, fair value | 26,541 | 29,070 | ||
Municipalities | ||||
Assets: | ||||
Securities held to maturity, fixed maturities, amortized cost | 346 | 377 | ||
Held to maturity, fixed maturity securities, fair value | 453 | 499 | ||
Public utilities | ||||
Assets: | ||||
Securities held to maturity, fixed maturities, amortized cost | 44 | 47 | ||
Held to maturity, fixed maturity securities, fair value | 57 | 61 | ||
Sovereign and supranational | ||||
Assets: | ||||
Securities held to maturity, fixed maturities, amortized cost | 528 | 571 | ||
Held to maturity, fixed maturity securities, fair value | 667 | 736 | ||
Other corporate | ||||
Assets: | ||||
Securities held to maturity, fixed maturities, amortized cost | 22 | 24 | ||
Held to maturity, fixed maturity securities, fair value | 30 | 33 | ||
Policy loans | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Other investments | 241 | 260 | ||
Equity method investments | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Other investments | 1,519 | 1,004 | ||
Level 1 | ||||
Assets: | ||||
Held to maturity, fixed maturity securities, fair value | 26,304 | 28,810 | ||
Commercial mortgage and other loans, fair value | 0 | 0 | ||
Other investments carried at amortized cost, fair value | 0 | [1] | 0 | [2] |
Assets fair value disclosure financial instruments carried at cost | 26,304 | 28,810 | ||
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 | Government and agencies | ||||
Assets: | ||||
Held to maturity, fixed maturity securities, fair value | 26,304 | 28,810 | ||
Level 1 | Municipalities | ||||
Assets: | ||||
Held to maturity, fixed maturity securities, fair value | 0 | 0 | ||
Level 1 | Public utilities | ||||
Assets: | ||||
Held to maturity, fixed maturity securities, fair value | 0 | 0 | ||
Level 1 | Sovereign and supranational | ||||
Assets: | ||||
Held to maturity, fixed maturity securities, fair value | 0 | 0 | ||
Level 1 | Other corporate | ||||
Assets: | ||||
Held to maturity, fixed maturity securities, fair value | 0 | 0 | ||
Level 2 | ||||
Assets: | ||||
Held to maturity, fixed maturity securities, fair value | 1,444 | 1,589 | ||
Commercial mortgage and other loans, fair value | 0 | 0 | ||
Other investments carried at amortized cost, fair value | 19 | [1] | 26 | [2] |
Assets fair value disclosure financial instruments carried at cost | 1,463 | 1,615 | ||
Liabilities: | ||||
Other policyholders' funds fair value disclosure | 0 | 0 | ||
Notes payable, fair value disclosure | 8,416 | 8,396 | ||
Liabilities fair value disclosure financial instruments carried at cost | 8,416 | 8,396 | ||
Level 2 | Government and agencies | ||||
Assets: | ||||
Held to maturity, fixed maturity securities, fair value | 237 | 260 | ||
Level 2 | Municipalities | ||||
Assets: | ||||
Held to maturity, fixed maturity securities, fair value | 453 | 499 | ||
Level 2 | Public utilities | ||||
Assets: | ||||
Held to maturity, fixed maturity securities, fair value | 57 | 61 | ||
Level 2 | Sovereign and supranational | ||||
Assets: | ||||
Held to maturity, fixed maturity securities, fair value | 667 | 736 | ||
Level 2 | Other corporate | ||||
Assets: | ||||
Held to maturity, fixed maturity securities, fair value | 30 | 33 | ||
Level 3 | ||||
Assets: | ||||
Held to maturity, fixed maturity securities, fair value | 0 | 0 | ||
Commercial mortgage and other loans, fair value | 11,596 | 10,655 | ||
Other investments carried at amortized cost, fair value | 0 | [1] | 0 | [2] |
Assets fair value disclosure financial instruments carried at cost | 11,596 | 10,655 | ||
Liabilities: | ||||
Other policyholders' funds fair value disclosure | 7,175 | 7,709 | ||
Notes payable, fair value disclosure | 266 | 288 | ||
Liabilities fair value disclosure financial instruments carried at cost | 7,441 | 7,997 | ||
Level 3 | Government and agencies | ||||
Assets: | ||||
Held to maturity, fixed maturity securities, fair value | 0 | 0 | ||
Level 3 | Municipalities | ||||
Assets: | ||||
Held to maturity, fixed maturity securities, fair value | 0 | 0 | ||
Level 3 | Public utilities | ||||
Assets: | ||||
Held to maturity, fixed maturity securities, fair value | 0 | 0 | ||
Level 3 | Sovereign and supranational | ||||
Assets: | ||||
Held to maturity, fixed maturity securities, fair value | 0 | 0 | ||
Level 3 | Other corporate | ||||
Assets: | ||||
Held to maturity, fixed maturity securities, fair value | $ 0 | $ 0 | ||
[1] | Excludes policy loans of $241 and equity method investments of $1,519, at carrying value | |||
[2] | Excludes policy loans of $260 and equity method investments of $1,004, at carrying value |
FAIR VALUE MEASUREMENTS - Fai_3
FAIR VALUE MEASUREMENTS - Fair Value Hierarchy Levels of Assets by Pricing Source, Securities Carried at Fair Value (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, fixed maturity securities | $ 100,722 | $ 105,882 |
Equity securities | 1,461 | 1,283 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, fixed maturity securities | 33,903 | 36,032 |
Equity securities | 1,210 | 1,095 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, fixed maturity securities | 65,649 | 68,833 |
Equity securities | 90 | 86 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, fixed maturity securities | 1,170 | 1,017 |
Equity securities | 161 | 102 |
Third party pricing vendor valuation technique | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 1,300 | 1,181 |
Third party pricing vendor valuation technique | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 1,210 | 1,095 |
Third party pricing vendor valuation technique | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 90 | 86 |
Third party pricing vendor valuation technique | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 0 | 0 |
Net asset value valuation technique | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 161 | 102 |
Net asset value valuation technique | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 0 | 0 |
Net asset value valuation technique | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 0 | 0 |
Net asset value valuation technique | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 161 | 102 |
Government and agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, fixed maturity securities | 35,226 | 37,350 |
Government and agencies | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, fixed maturity securities | 33,903 | 36,032 |
Government and agencies | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, fixed maturity securities | 1,323 | 1,318 |
Government and agencies | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, fixed maturity securities | 0 | 0 |
Government and agencies | Third party pricing vendor valuation technique | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, fixed maturity securities | 34,734 | 37,350 |
Government and agencies | Third party pricing vendor valuation technique | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, fixed maturity securities | 33,903 | 36,032 |
Government and agencies | Third party pricing vendor valuation technique | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, fixed maturity securities | 831 | 1,318 |
Government and agencies | Third party pricing vendor valuation technique | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, fixed maturity securities | 0 | 0 |
Government and agencies | Internal valuation technique | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, fixed maturity securities | 492 | |
Government and agencies | Internal valuation technique | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, fixed maturity securities | 0 | |
Government and agencies | Internal valuation technique | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, fixed maturity securities | 492 | |
Government and agencies | Internal valuation technique | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, fixed maturity securities | 0 | |
Municipalities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, fixed maturity securities | 2,937 | 3,018 |
Municipalities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, fixed maturity securities | 0 | 0 |
Municipalities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, fixed maturity securities | 2,937 | 3,018 |
Municipalities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, fixed maturity securities | 0 | 0 |
Municipalities | Third party pricing vendor valuation technique | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, fixed maturity securities | 2,114 | 3,018 |
Municipalities | Third party pricing vendor valuation technique | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, fixed maturity securities | 0 | 0 |
Municipalities | Third party pricing vendor valuation technique | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, fixed maturity securities | 2,114 | 3,018 |
Municipalities | Third party pricing vendor valuation technique | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, fixed maturity securities | 0 | 0 |
Municipalities | Internal valuation technique | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, fixed maturity securities | 823 | |
Municipalities | Internal valuation technique | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, fixed maturity securities | 0 | |
Municipalities | Internal valuation technique | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, fixed maturity securities | 823 | |
Municipalities | Internal valuation technique | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, fixed maturity securities | 0 | |
Mortgage- and asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, fixed maturity securities | 1,292 | 1,038 |
Mortgage- and asset-backed securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, fixed maturity securities | 0 | 0 |
Mortgage- and asset-backed securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, fixed maturity securities | 1,042 | 814 |
Mortgage- and asset-backed securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, fixed maturity securities | 250 | 224 |
Mortgage- and asset-backed securities | Third party pricing vendor valuation technique | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, fixed maturity securities | 1,021 | 364 |
Mortgage- and asset-backed 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, fixed maturity securities | 0 | 0 |
Mortgage- and asset-backed 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, fixed maturity securities | 1,021 | 364 |
Mortgage- and asset-backed 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, fixed maturity securities | 0 | 0 |
Mortgage- and asset-backed securities | Consensus pricing valuation technique | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, fixed maturity securities | 271 | 674 |
Mortgage- and asset-backed securities | Consensus pricing valuation technique | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, fixed maturity securities | 0 | 0 |
Mortgage- and asset-backed securities | Consensus pricing valuation technique | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, fixed maturity securities | 21 | 450 |
Mortgage- and asset-backed securities | Consensus pricing valuation technique | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, fixed maturity securities | 250 | 224 |
Public utilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, fixed maturity securities | 10,315 | 10,817 |
Public utilities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, fixed maturity securities | 0 | 0 |
Public utilities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, fixed maturity securities | 9,792 | 10,395 |
Public utilities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, fixed maturity securities | 523 | 422 |
Public utilities | Third party pricing vendor valuation technique | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, fixed maturity securities | 4,628 | 10,395 |
Public utilities | Third party pricing vendor valuation technique | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, fixed maturity securities | 0 | 0 |
Public utilities | Third party pricing vendor valuation technique | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, fixed maturity securities | 4,628 | 10,395 |
Public utilities | Third party pricing vendor valuation technique | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, fixed maturity securities | 0 | 0 |
Public utilities | Discounted cash flow technique | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, fixed maturity securities | 524 | 422 |
Public utilities | Discounted cash flow technique | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, fixed maturity securities | 0 | 0 |
Public utilities | Discounted cash flow technique | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, fixed maturity securities | 1 | 0 |
Public utilities | Discounted cash flow technique | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, fixed maturity securities | 523 | 422 |
Public utilities | Internal valuation technique | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, fixed maturity securities | 5,163 | |
Public utilities | Internal valuation technique | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, fixed maturity securities | 0 | |
Public utilities | Internal valuation technique | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, fixed maturity securities | 5,163 | |
Public utilities | Internal valuation technique | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, fixed maturity securities | 0 | |
Sovereign and supranational | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, fixed maturity securities | 1,142 | 1,382 |
Sovereign and supranational | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, fixed maturity securities | 0 | 0 |
Sovereign and supranational | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, fixed maturity securities | 1,097 | 1,334 |
Sovereign and supranational | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, fixed maturity securities | 45 | 48 |
Sovereign and supranational | Third party pricing vendor valuation technique | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, fixed maturity securities | 279 | 1,334 |
Sovereign and supranational | Third party pricing vendor valuation technique | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, fixed maturity securities | 0 | 0 |
Sovereign and supranational | Third party pricing vendor valuation technique | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, fixed maturity securities | 279 | 1,334 |
Sovereign and supranational | Third party pricing vendor valuation technique | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, fixed maturity securities | 0 | 0 |
Sovereign and supranational | Discounted cash flow technique | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, fixed maturity securities | 45 | 48 |
Sovereign and supranational | Discounted cash flow technique | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, fixed maturity securities | 0 | 0 |
Sovereign and supranational | Discounted cash flow technique | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, fixed maturity securities | 0 | 0 |
Sovereign and supranational | Discounted cash flow technique | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, fixed maturity securities | 45 | 48 |
Sovereign and supranational | Internal valuation technique | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, fixed maturity securities | 818 | |
Sovereign and supranational | Internal valuation technique | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, fixed maturity securities | 0 | |
Sovereign and supranational | Internal valuation technique | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, fixed maturity securities | 818 | |
Sovereign and supranational | Internal valuation technique | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, fixed maturity securities | 0 | |
Banks/financial institutions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, fixed maturity securities | 11,742 | 12,060 |
Banks/financial institutions | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, fixed maturity securities | 0 | 0 |
Banks/financial institutions | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, fixed maturity securities | 11,696 | 12,036 |
Banks/financial institutions | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, fixed maturity securities | 46 | 24 |
Banks/financial institutions | Third party pricing vendor valuation technique | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, fixed maturity securities | 5,191 | 12,036 |
Banks/financial institutions | Third party pricing vendor valuation technique | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, fixed maturity securities | 0 | 0 |
Banks/financial institutions | Third party pricing vendor valuation technique | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, fixed maturity securities | 5,191 | 12,036 |
Banks/financial institutions | Third party pricing vendor valuation technique | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, fixed maturity securities | 0 | 0 |
Banks/financial institutions | Consensus pricing valuation technique | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, fixed maturity securities | 46 | 24 |
Banks/financial institutions | Consensus pricing valuation technique | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, fixed maturity securities | 0 | 0 |
Banks/financial institutions | Consensus pricing valuation technique | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, fixed maturity securities | 0 | 0 |
Banks/financial institutions | Consensus pricing valuation technique | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, fixed maturity securities | 46 | 24 |
Banks/financial institutions | Internal valuation technique | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, fixed maturity securities | 6,505 | |
Banks/financial institutions | Internal valuation technique | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, fixed maturity securities | 0 | |
Banks/financial institutions | Internal valuation technique | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, fixed maturity securities | 6,505 | |
Banks/financial institutions | Internal valuation technique | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, fixed maturity securities | 0 | |
Other corporate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, fixed maturity securities | 38,068 | 40,217 |
Other corporate | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, fixed maturity securities | 0 | 0 |
Other corporate | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, fixed maturity securities | 37,762 | 39,918 |
Other corporate | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, fixed maturity securities | 306 | 299 |
Other corporate | Third party pricing vendor valuation technique | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, fixed maturity securities | 29,601 | 39,886 |
Other corporate | Third party pricing vendor valuation technique | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, fixed maturity securities | 0 | 0 |
Other corporate | Third party pricing vendor valuation technique | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, fixed maturity securities | 29,601 | 39,886 |
Other corporate | Third party pricing vendor valuation technique | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, fixed maturity securities | 0 | 0 |
Other corporate | Discounted cash flow technique | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, fixed maturity securities | 312 | 331 |
Other corporate | Discounted cash flow technique | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, fixed maturity securities | 0 | 0 |
Other corporate | Discounted cash flow technique | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, fixed maturity securities | 6 | 32 |
Other corporate | Discounted cash flow technique | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, fixed maturity securities | 306 | $ 299 |
Other corporate | Internal valuation technique | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, fixed maturity securities | 8,155 | |
Other corporate | Internal valuation technique | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, fixed maturity securities | 0 | |
Other corporate | Internal valuation technique | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, fixed maturity securities | 8,155 | |
Other corporate | Internal valuation technique | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, fixed maturity securities | $ 0 |
FAIR VALUE MEASUREMENTS - Fai_4
FAIR VALUE MEASUREMENTS - Fair Value Hierarchy Levels of Assets by Pricing Source, Securities Carried at Amortized Cost (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | $ 27,748 | $ 30,399 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 26,304 | 28,810 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 1,444 | 1,589 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 0 | 0 |
Government and agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 26,541 | 29,070 |
Government and agencies | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 26,304 | 28,810 |
Government and agencies | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 237 | 260 |
Government and agencies | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 0 | 0 |
Government and agencies | Third party pricing vendor valuation technique | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 26,541 | 29,070 |
Government and agencies | Third party pricing vendor valuation technique | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 26,304 | 28,810 |
Government and agencies | Third party pricing vendor valuation technique | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 237 | 260 |
Government and agencies | Third party pricing vendor valuation technique | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 0 | 0 |
Municipalities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 453 | 499 |
Municipalities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 0 | 0 |
Municipalities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 453 | 499 |
Municipalities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 0 | 0 |
Municipalities | Third party pricing vendor valuation technique | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 453 | 499 |
Municipalities | Third party pricing vendor valuation technique | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 0 | 0 |
Municipalities | Third party pricing vendor valuation technique | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 453 | 499 |
Municipalities | Third party pricing vendor valuation technique | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 0 | 0 |
Public utilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 57 | 61 |
Public utilities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 0 | 0 |
Public utilities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 57 | 61 |
Public utilities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 0 | 0 |
Public utilities | Third party pricing vendor valuation technique | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 57 | 61 |
Public utilities | Third party pricing vendor valuation technique | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 0 | 0 |
Public utilities | Third party pricing vendor valuation technique | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 57 | 61 |
Public utilities | Third party pricing vendor valuation technique | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 0 | 0 |
Sovereign and supranational | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 667 | 736 |
Sovereign and supranational | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 0 | 0 |
Sovereign and supranational | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 667 | 736 |
Sovereign and supranational | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 0 | 0 |
Sovereign and supranational | Third party pricing vendor valuation technique | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 322 | 736 |
Sovereign and supranational | Third party pricing vendor valuation technique | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 0 | 0 |
Sovereign and supranational | Third party pricing vendor valuation technique | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 322 | 736 |
Sovereign and supranational | Third party pricing vendor valuation technique | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 0 | 0 |
Sovereign and supranational | Consensus pricing valuation technique | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 345 | |
Sovereign and supranational | Consensus pricing valuation technique | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 0 | |
Sovereign and supranational | Consensus pricing valuation technique | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 345 | |
Sovereign and supranational | Consensus pricing valuation technique | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 0 | |
Other corporate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 30 | 33 |
Other corporate | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 0 | 0 |
Other corporate | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 30 | 33 |
Other corporate | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 0 | 0 |
Other corporate | Third party pricing vendor valuation technique | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 30 | 33 |
Other corporate | Third party pricing vendor valuation technique | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 0 | 0 |
Other corporate | Third party pricing vendor valuation technique | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 30 | 33 |
Other corporate | Third party pricing vendor valuation technique | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - Chang
FAIR VALUE MEASUREMENTS - Changes in Investments and Derivatives Carried at Fair Value Classified as Level 3 (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, beginning of period | $ 1,095 | $ 695 | $ 1,021 | $ 810 |
Net investment gains (losses) included in earnings | (56) | 23 | (135) | (184) |
Unrealized gains (losses) included in other comprehensive income (loss) | (14) | 44 | (42) | 17 |
Purchases | 109 | 39 | 283 | 155 |
Issuances | 0 | 0 | 17 | 0 |
Sales | (8) | (5) | (31) | (6) |
Settlements | (8) | (2) | (35) | (7) |
Transfers into Level 3 | 0 | 0 | 55 | 24 |
Transfers out of Level 3 | (44) | 0 | (59) | (15) |
Balance, end of period | 1,074 | 794 | 1,074 | 794 |
Change in unrealized gains (losses) still held | (72) | 23 | (178) | (184) |
Foreign currency swaps | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Balance, beginning of period | (200) | (168) | (98) | 43 |
Net investment gains (losses) included in earnings | (57) | 23 | (158) | (184) |
Unrealized gains or losses included in other comprehensive income (loss) | 0 | 2 | (1) | (2) |
Purchases | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Balance, end of period | (257) | (143) | (257) | (143) |
Changes in unrealized gain (losses) still held | (57) | 23 | (158) | (184) |
Fixed maturity securities | Mortgage- and asset-backed securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, beginning of period | 258 | 188 | 224 | 178 |
Net investment gains (losses) included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) included in other comprehensive income (loss) | (4) | 3 | (19) | 5 |
Purchases | 35 | 0 | 99 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | (1) |
Transfers into Level 3 | 0 | 0 | 0 | 9 |
Transfers out of Level 3 | (39) | 0 | (54) | 0 |
Balance, end of period | 250 | 191 | 250 | 191 |
Change in unrealized gains (losses) still held | (4) | 0 | (19) | 0 |
Fixed maturity securities | Public utilities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, beginning of period | 480 | 322 | 422 | 224 |
Net investment gains (losses) included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) included in other comprehensive income (loss) | (3) | 15 | (13) | 6 |
Purchases | 54 | 33 | 132 | 129 |
Issuances | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Settlements | (8) | (2) | (18) | (6) |
Transfers into Level 3 | 0 | 0 | 0 | 15 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Balance, end of period | 523 | 368 | 523 | 368 |
Change in unrealized gains (losses) still held | (3) | 0 | (13) | 0 |
Fixed maturity securities | Sovereign and supranational | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, beginning of period | 45 | 48 | ||
Net investment gains (losses) included in earnings | 0 | 0 | ||
Unrealized gains (losses) included in other comprehensive income (loss) | 0 | (3) | ||
Purchases | 0 | 0 | ||
Issuances | 0 | 0 | ||
Sales | 0 | (23) | ||
Settlements | 0 | 0 | ||
Transfers into Level 3 | 0 | 23 | ||
Transfers out of Level 3 | 0 | 0 | ||
Balance, end of period | 45 | 45 | ||
Change in unrealized gains (losses) still held | 0 | (3) | ||
Fixed maturity securities | Banks/financial institutions | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, beginning of period | 38 | 24 | 24 | 23 |
Net investment gains (losses) included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) included in other comprehensive income (loss) | 0 | 0 | (1) | 0 |
Purchases | 8 | 0 | 23 | 1 |
Issuances | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Balance, end of period | 46 | 24 | 46 | 24 |
Change in unrealized gains (losses) still held | 0 | 0 | (1) | 0 |
Fixed maturity securities | Other corporate | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, beginning of period | 316 | 243 | 299 | 262 |
Net investment gains (losses) included in earnings | 2 | 0 | 2 | 0 |
Unrealized gains (losses) included in other comprehensive income (loss) | (7) | 24 | (5) | 8 |
Purchases | 0 | 1 | 0 | 13 |
Issuances | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | (17) | 0 |
Transfers into Level 3 | 0 | 0 | 32 | 0 |
Transfers out of Level 3 | (5) | 0 | (5) | (15) |
Balance, end of period | 306 | 268 | 306 | 268 |
Change in unrealized gains (losses) still held | (7) | 0 | (5) | 0 |
Equity securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, beginning of period | 158 | 86 | 102 | 80 |
Net investment gains (losses) included in earnings | (1) | 0 | 21 | 0 |
Unrealized gains (losses) included in other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Purchases | 12 | 5 | 29 | 12 |
Issuances | 0 | 0 | 17 | 0 |
Sales | (8) | (5) | (8) | (6) |
Settlements | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Balance, end of period | 161 | 86 | 161 | 86 |
Change in unrealized gains (losses) still held | $ (1) | $ 0 | $ 21 | $ 0 |
FAIR VALUE MEASUREMENTS - Fai_5
FAIR VALUE MEASUREMENTS - Fair Value Measurement Inputs and Valuation Techniques (Details) $ in Millions | Sep. 30, 2021USD ($) | Dec. 31, 2020USD ($) | |
Fair Value Measurement Inputs and Valuation Techniques | |||
Available for sale, fixed maturity securities | $ 100,722 | $ 105,882 | |
Equity securities | 1,461 | 1,283 | |
Asset derivatives | 745 | 583 | |
Liability derivatives | 1,270 | 697 | |
Assets, fair value | 110,969 | 114,028 | |
Liabilities, fair value | 1,270 | 697 | |
Level 3 | |||
Fair Value Measurement Inputs and Valuation Techniques | |||
Available for sale, fixed maturity securities | 1,170 | 1,017 | |
Equity securities | 161 | 102 | |
Asset derivatives | 99 | 133 | |
Assets, fair value | 1,430 | 1,252 | |
Liabilities, fair value | 356 | 231 | |
Net asset value valuation technique | |||
Fair Value Measurement Inputs and Valuation Techniques | |||
Equity securities | 161 | 102 | |
Net asset value valuation technique | Level 3 | |||
Fair Value Measurement Inputs and Valuation Techniques | |||
Equity securities | 161 | 102 | |
Foreign currency swaps | |||
Fair Value Measurement Inputs and Valuation Techniques | |||
Asset derivatives | 151 | 180 | |
Liability derivatives | 378 | 312 | |
Foreign currency swaps | Level 3 | |||
Fair Value Measurement Inputs and Valuation Techniques | |||
Asset derivatives | 99 | 133 | |
Liability derivatives | 356 | 231 | |
Foreign currency swaps | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY) and CDS Spreads | Discounted cash flow technique | Level 3 | |||
Fair Value Measurement Inputs and Valuation Techniques | |||
Asset derivatives | 34 | 69 | |
Liability derivatives | 167 | 160 | |
Foreign currency swaps | Fair Value, Unobservable Input, Interest Rates (USD) and Interest Rates (JPY) | Discounted cash flow technique | Level 3 | |||
Fair Value Measurement Inputs and Valuation Techniques | |||
Asset derivatives | 65 | 64 | |
Liability derivatives | $ 189 | $ 71 | |
Foreign currency swaps | Credit Spread | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY) and CDS Spreads | Lower Limit | Level 3 | |||
Fair Value Measurement Inputs and Valuation Techniques | |||
Derivative asset, measurement input | 0.0023 | 0.0022 | |
Derivative liability, measurement input | 0.0023 | 0.0041 | |
Foreign currency swaps | Credit Spread | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY) and CDS Spreads | Upper Limit | Level 3 | |||
Fair Value Measurement Inputs and Valuation Techniques | |||
Derivative asset, measurement input | 0.0124 | 0.0128 | |
Derivative liability, measurement input | 0.0182 | 0.0140 | |
Dollar-denominated | |||
Fair Value Measurement Inputs and Valuation Techniques | |||
Available for sale, fixed maturity securities | $ 40,568 | $ 41,611 | |
Equity securities | $ 667 | $ 603 | |
Dollar-denominated | Foreign currency swaps | Discount Rate | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY) and CDS Spreads | Lower Limit | Level 3 | |||
Fair Value Measurement Inputs and Valuation Techniques | |||
Derivative asset, measurement input | [1] | 0.0151 | 0.0093 |
Derivative liability, measurement input | [1] | 0.0151 | 0.0093 |
Dollar-denominated | Foreign currency swaps | Discount Rate | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY) and CDS Spreads | Upper Limit | Level 3 | |||
Fair Value Measurement Inputs and Valuation Techniques | |||
Derivative asset, measurement input | [1] | 0.0179 | 0.0140 |
Derivative liability, measurement input | [1] | 0.0179 | 0.0112 |
Dollar-denominated | Foreign currency swaps | Discount Rate | Fair Value, Unobservable Input, Interest Rates (USD) and Interest Rates (JPY) | Lower Limit | Level 3 | |||
Fair Value Measurement Inputs and Valuation Techniques | |||
Derivative asset, measurement input | [1] | 0.0151 | 0.0093 |
Derivative liability, measurement input | [1] | 0.0151 | 0.0093 |
Dollar-denominated | Foreign currency swaps | Discount Rate | Fair Value, Unobservable Input, Interest Rates (USD) and Interest Rates (JPY) | Upper Limit | Level 3 | |||
Fair Value Measurement Inputs and Valuation Techniques | |||
Derivative asset, measurement input | [1] | 0.0179 | 0.0140 |
Derivative liability, measurement input | [1] | 0.0179 | 0.0112 |
Yen-denominated | |||
Fair Value Measurement Inputs and Valuation Techniques | |||
Available for sale, fixed maturity securities | $ 60,154 | $ 64,271 | |
Equity securities | $ 753 | $ 680 | |
Yen-denominated | Foreign currency swaps | Discount Rate | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY) and CDS Spreads | Lower Limit | Level 3 | |||
Fair Value Measurement Inputs and Valuation Techniques | |||
Derivative asset, measurement input | [2] | 0.0011 | 0.0005 |
Derivative liability, measurement input | [2] | 0.0011 | 0.0005 |
Yen-denominated | Foreign currency swaps | Discount Rate | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY) and CDS Spreads | Upper Limit | Level 3 | |||
Fair Value Measurement Inputs and Valuation Techniques | |||
Derivative asset, measurement input | [2] | 0.0053 | 0.0043 |
Derivative liability, measurement input | [2] | 0.0053 | 0.0035 |
Yen-denominated | Foreign currency swaps | Discount Rate | Fair Value, Unobservable Input, Interest Rates (USD) and Interest Rates (JPY) | Lower Limit | Level 3 | |||
Fair Value Measurement Inputs and Valuation Techniques | |||
Derivative asset, measurement input | [2] | 0.0011 | 0.0005 |
Derivative liability, measurement input | [2] | 0.0011 | 0.0005 |
Yen-denominated | Foreign currency swaps | Discount Rate | Fair Value, Unobservable Input, Interest Rates (USD) and Interest Rates (JPY) | Upper Limit | Level 3 | |||
Fair Value Measurement Inputs and Valuation Techniques | |||
Derivative asset, measurement input | [2] | 0.0053 | 0.0043 |
Derivative liability, measurement input | [2] | 0.0053 | 0.0035 |
Mortgage- and asset-backed securities | |||
Fair Value Measurement Inputs and Valuation Techniques | |||
Available for sale, fixed maturity securities | $ 1,292 | $ 1,038 | |
Mortgage- and asset-backed securities | Level 3 | |||
Fair Value Measurement Inputs and Valuation Techniques | |||
Available for sale, fixed maturity securities | 250 | 224 | |
Mortgage- and asset-backed securities | Consensus pricing valuation technique | |||
Fair Value Measurement Inputs and Valuation Techniques | |||
Available for sale, fixed maturity securities | 271 | 674 | |
Mortgage- and asset-backed securities | Consensus pricing valuation technique | Level 3 | |||
Fair Value Measurement Inputs and Valuation Techniques | |||
Available for sale, fixed maturity securities | 250 | 224 | |
Mortgage- and asset-backed securities | Dollar-denominated | |||
Fair Value Measurement Inputs and Valuation Techniques | |||
Available for sale, fixed maturity securities | 962 | 670 | |
Mortgage- and asset-backed securities | Yen-denominated | |||
Fair Value Measurement Inputs and Valuation Techniques | |||
Available for sale, fixed maturity securities | 330 | 368 | |
Public utilities | |||
Fair Value Measurement Inputs and Valuation Techniques | |||
Available for sale, fixed maturity securities | 10,315 | 10,817 | |
Public utilities | Level 3 | |||
Fair Value Measurement Inputs and Valuation Techniques | |||
Available for sale, fixed maturity securities | 523 | 422 | |
Public utilities | Discounted cash flow technique | |||
Fair Value Measurement Inputs and Valuation Techniques | |||
Available for sale, fixed maturity securities | 524 | 422 | |
Public utilities | Discounted cash flow technique | Level 3 | |||
Fair Value Measurement Inputs and Valuation Techniques | |||
Available for sale, fixed maturity securities | 523 | 422 | |
Public utilities | Dollar-denominated | |||
Fair Value Measurement Inputs and Valuation Techniques | |||
Available for sale, fixed maturity securities | 4,803 | 4,945 | |
Public utilities | Yen-denominated | |||
Fair Value Measurement Inputs and Valuation Techniques | |||
Available for sale, fixed maturity securities | 5,512 | 5,872 | |
Sovereign and supranational | |||
Fair Value Measurement Inputs and Valuation Techniques | |||
Available for sale, fixed maturity securities | 1,142 | 1,382 | |
Sovereign and supranational | Level 3 | |||
Fair Value Measurement Inputs and Valuation Techniques | |||
Available for sale, fixed maturity securities | 45 | 48 | |
Sovereign and supranational | Discounted cash flow technique | |||
Fair Value Measurement Inputs and Valuation Techniques | |||
Available for sale, fixed maturity securities | 45 | 48 | |
Sovereign and supranational | Discounted cash flow technique | Level 3 | |||
Fair Value Measurement Inputs and Valuation Techniques | |||
Available for sale, fixed maturity securities | 45 | 48 | |
Sovereign and supranational | Dollar-denominated | |||
Fair Value Measurement Inputs and Valuation Techniques | |||
Available for sale, fixed maturity securities | 280 | 293 | |
Sovereign and supranational | Yen-denominated | |||
Fair Value Measurement Inputs and Valuation Techniques | |||
Available for sale, fixed maturity securities | 862 | 1,089 | |
Banks/financial institutions | |||
Fair Value Measurement Inputs and Valuation Techniques | |||
Available for sale, fixed maturity securities | 11,742 | 12,060 | |
Banks/financial institutions | Level 3 | |||
Fair Value Measurement Inputs and Valuation Techniques | |||
Available for sale, fixed maturity securities | 46 | 24 | |
Banks/financial institutions | Consensus pricing valuation technique | |||
Fair Value Measurement Inputs and Valuation Techniques | |||
Available for sale, fixed maturity securities | 46 | 24 | |
Banks/financial institutions | Consensus pricing valuation technique | Level 3 | |||
Fair Value Measurement Inputs and Valuation Techniques | |||
Available for sale, fixed maturity securities | 46 | 24 | |
Banks/financial institutions | Dollar-denominated | |||
Fair Value Measurement Inputs and Valuation Techniques | |||
Available for sale, fixed maturity securities | 3,825 | 3,724 | |
Banks/financial institutions | Yen-denominated | |||
Fair Value Measurement Inputs and Valuation Techniques | |||
Available for sale, fixed maturity securities | 7,917 | 8,336 | |
Other corporate | |||
Fair Value Measurement Inputs and Valuation Techniques | |||
Available for sale, fixed maturity securities | 38,068 | 40,217 | |
Other corporate | Level 3 | |||
Fair Value Measurement Inputs and Valuation Techniques | |||
Available for sale, fixed maturity securities | 306 | 299 | |
Other corporate | Discounted cash flow technique | |||
Fair Value Measurement Inputs and Valuation Techniques | |||
Available for sale, fixed maturity securities | 312 | 331 | |
Other corporate | Discounted cash flow technique | Level 3 | |||
Fair Value Measurement Inputs and Valuation Techniques | |||
Available for sale, fixed maturity securities | 306 | 299 | |
Other corporate | Dollar-denominated | |||
Fair Value Measurement Inputs and Valuation Techniques | |||
Available for sale, fixed maturity securities | 29,138 | 30,393 | |
Other corporate | Yen-denominated | |||
Fair Value Measurement Inputs and Valuation Techniques | |||
Available for sale, fixed maturity securities | $ 8,930 | $ 9,824 | |
[1] | Inputs derived from U.S. long-term rates to accommodate long maturity nature of the Company's swaps | ||
[2] | Inputs derived from Japan long-term rates to accommodate long maturity nature of the Company's swaps |
POLICY LIABILITIES - Changes in
POLICY LIABILITIES - Changes in Liability for Unpaid Policy Claims (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Liability for Unpaid Claims and Claims Expenses | ||||
Net balance, beginning of period | $ 5,187 | |||
Less claims paid during the period on claims incurred during: | ||||
Net balance, end of period | $ 4,909 | 4,909 | ||
Total liability for unpaid policy claims | 4,909 | $ 4,976 | 4,909 | $ 4,976 |
Health insurance | ||||
Liability for Unpaid Claims and Claims Expenses | ||||
Unpaid supplemental health claims, beginning of period | 4,162 | 4,041 | 4,389 | 3,968 |
Less reinsurance recoverables | 37 | 37 | 39 | 31 |
Net balance, beginning of period | 4,125 | 4,004 | 4,350 | 3,937 |
Add claims incurred during the period related to: | ||||
Current year | 1,720 | 1,780 | 5,302 | 5,354 |
Prior years | (215) | (105) | (739) | (408) |
Total incurred | 1,505 | 1,675 | 4,563 | 4,946 |
Less claims paid during the period on claims incurred during: | ||||
Current year | 1,279 | 1,295 | 2,947 | 2,971 |
Prior years | 219 | 249 | 1,676 | 1,811 |
Total paid | 1,498 | 1,544 | 4,623 | 4,782 |
Effect of foreign exchange rate changes on unpaid claims | (29) | 42 | (187) | 76 |
Net balance, end of period | 4,103 | 4,177 | 4,103 | 4,177 |
Add reinsurance recoverables | 39 | 40 | 39 | 40 |
Total liability for unpaid policy claims | 4,142 | 4,217 | 4,142 | 4,217 |
Life insurance | ||||
Less claims paid during the period on claims incurred during: | ||||
Total liability for unpaid policy claims | $ 767 | $ 759 | $ 767 | $ 759 |
POLICY LIABILITIES - Additional
POLICY LIABILITIES - Additional Information (Details) - Health insurance - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||
Prior years claims and claims adjustment expense | $ (215) | $ (105) | $ (739) | $ (408) |
Aflac Japan | ||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||
Prior years claims and claims adjustment expense | $ (369) | |||
Percentage of total prior year claims and claims adjustment expense | 49.90% | |||
Liability for unpaid claims and claims adjustment expense, foreign currency translation gain (loss), prior year claims adjustment expense | $ (11) | |||
Prior year claims and claims adjustment expense excluding effect of foreign currency | $ (380) | |||
Percentage of total prior year claims and claims adjustment expense excluding effect of foreign currency | 51.00% | |||
Aflac U.S. | ||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||
Prior years claims and claims adjustment expense | $ (370) | |||
Percentage of total prior year claims and claims adjustment expense | 50.10% | |||
Prior Year Claims And Claims Adjustment Expense From Refinement of Estimates | $ (143) |
REINSURANCE - Additional Inform
REINSURANCE - Additional Information (Details) $ in Millions, ¥ in Billions | 9 Months Ended | ||
Sep. 30, 2021JPY (¥) | Sep. 30, 2021USD ($) | Dec. 31, 2020USD ($) | |
Effects of Reinsurance [Line Items] | |||
Percent change in spot yen/dollar exchange rate | (7.50%) | ||
Percent change in ceded reserves | (7.20%) | ||
Aflac Japan | |||
Effects of Reinsurance [Line Items] | |||
Committed reinsurance facility | ¥ | ¥ 120 | ||
Aflac Japan | Closed Block | |||
Effects of Reinsurance [Line Items] | |||
Reinsurance deferred profit liability | $ 900 | $ 1,000 | |
Reinsurance recoverable | $ 962 | $ 1,000 |
REINSURANCE - Effect of Reinsur
REINSURANCE - Effect of Reinsurance on Premiums and Benefits and Claims (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Effects of Reinsurance [Line Items] | ||||
Direct premium income | $ 4,426 | $ 4,711 | $ 13,567 | $ 14,236 |
Net premium income | 4,372 | 4,623 | 13,406 | 13,969 |
Direct benefits and claims | 2,649 | 3,051 | 8,112 | 9,054 |
Benefits and claims, net | 2,609 | 2,985 | 7,996 | 8,822 |
Intercompany eliminations | ||||
Effects of Reinsurance [Line Items] | ||||
Ceded benefits and claims | 8 | 10 | 24 | 29 |
Assumed benefits and claims from other companies | (8) | (10) | (24) | (29) |
All other | ||||
Effects of Reinsurance [Line Items] | ||||
Ceded premiums | (19) | (22) | (54) | (69) |
Assumed premiums earned | 27 | 1 | 84 | 5 |
Ceded benefits and claims | (9) | (10) | (25) | (54) |
Assumed benefits and claims from other companies | 21 | 0 | 71 | 3 |
Aflac Japan | ||||
Effects of Reinsurance [Line Items] | ||||
Net premium income | 2,934 | 3,168 | 9,045 | 9,476 |
Aflac Japan | Closed Block | ||||
Effects of Reinsurance [Line Items] | ||||
Ceded premiums | (107) | (116) | (329) | (349) |
Assumed premiums earned | 45 | 49 | 138 | 146 |
Ceded benefits and claims | (94) | (103) | (288) | (314) |
Assumed benefits and claims from other companies | $ 42 | $ 47 | $ 126 | $ 133 |
NOTES PAYABLE AND LEASE OBLIG_3
NOTES PAYABLE AND LEASE OBLIGATIONS - Additional Information (Details) $ in Millions, ¥ in Billions | 1 Months Ended | |||||
May 31, 2021USD ($) | Mar. 31, 2021USD ($) | Sep. 30, 2021JPY (¥) | Sep. 30, 2021USD ($) | Apr. 30, 2021JPY (¥)series | Dec. 31, 2020 | |
Debt Instrument [Line Items] | ||||||
Number of series of senior notes issued through a U.S. public debt offering | series | 5 | |||||
Senior notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, principal amount | ¥ 82 | |||||
.633% senior notes due April 2031 | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, principal amount | ¥ 30 | ¥ 30 | ||||
Debt instrument, interest rate | 0.633% | 0.633% | 0.633% | |||
.844% senior notes due April 2033 | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, principal amount | ¥ 12 | ¥ 12 | ||||
Debt instrument, interest rate | 0.844% | 0.844% | 0.844% | |||
1.039% senior notes due April 2036 | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, principal amount | ¥ 10 | ¥ 10 | ||||
Debt instrument, interest rate | 1.039% | 1.039% | 1.039% | |||
1.264% senior notes due April 2041 | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, principal amount | ¥ 10 | ¥ 10 | ||||
Debt instrument, interest rate | 1.264% | 1.264% | 1.264% | |||
1.560% senior notes due April 2051 | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, principal amount | ¥ 20 | ¥ 20 | ||||
Debt instrument, interest rate | 1.56% | 1.56% | 1.56% | |||
3.625% senior notes paid May 2021 | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, interest rate | 3.625% | 3.625% | 3.625% | 3.625% | ||
Repayments of debt | $ | $ 700 | |||||
1.125% senior sustainability notes due March 2026 | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, principal amount | $ | $ 400 | |||||
Debt instrument, interest rate | 1.125% | 1.125% | 1.125% | 1.125% | ||
Debt instrument, redemption, description | These notes are redeemable at the Parent Company's option in whole at any time or in part from time to time at a redemption price equal to the greater of: (i) the aggregate principal amount of the notes to be redeemed or (ii) the amount equal to the sum of the present values of the remaining scheduled payments for principal of and interest on the notes to be redeemed, not including any portion of the payments of interest accrued as of such redemption date, discounted to such redemption date on a semiannual basis at the yield to maturity for a U.S. Treasury security with a maturity comparable to the remaining term of the notes, plus 10 basis points, plus in each case, accrued and unpaid interest on the principal amount of the notes to be redeemed to, but excluding, such redemption date. | |||||
Notes payable | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, debt default, amount | $ | $ 0 | |||||
Lines of credit | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, debt default, amount | $ | $ 0 |
NOTES PAYABLE AND LEASE OBLIG_4
NOTES PAYABLE AND LEASE OBLIGATIONS - Summary of Notes Payable (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Notes payable and lease obligations | $ 8,066 | $ 7,899 |
Finance lease obligations | 13 | 11 |
Operating lease obligations | 116 | 143 |
3.625% senior notes paid May 2021 | ||
Debt Instrument [Line Items] | ||
Notes payable and lease obligations | 0 | 698 |
3.625% senior notes due November 2024 | ||
Debt Instrument [Line Items] | ||
Notes payable and lease obligations | 748 | 747 |
3.25% senior notes due March 2025 | ||
Debt Instrument [Line Items] | ||
Notes payable and lease obligations | 448 | 448 |
1.125% senior sustainability notes due March 2026 | ||
Debt Instrument [Line Items] | ||
Notes payable and lease obligations | 397 | 0 |
2.875% senior notes due October 2026 | ||
Debt Instrument [Line Items] | ||
Notes payable and lease obligations | 298 | 298 |
3.60% senior notes due April 2030 | ||
Debt Instrument [Line Items] | ||
Notes payable and lease obligations | 991 | 990 |
6.90% senior notes due December 2039 | ||
Debt Instrument [Line Items] | ||
Notes payable and lease obligations | 221 | 221 |
6.45% senior notes due August 2040 | ||
Debt Instrument [Line Items] | ||
Notes payable and lease obligations | 255 | 254 |
4.00% senior notes due October 2046 | ||
Debt Instrument [Line Items] | ||
Notes payable and lease obligations | 394 | 394 |
4.750% senior notes due January 2049 | ||
Debt Instrument [Line Items] | ||
Notes payable and lease obligations | 541 | 541 |
.300% senior notes due September 2025 | ||
Debt Instrument [Line Items] | ||
Notes payable and lease obligations | 110 | 119 |
.932% senior notes due January 2027 | ||
Debt Instrument [Line Items] | ||
Notes payable and lease obligations | 534 | 578 |
.500% senior notes due December 2029 | ||
Debt Instrument [Line Items] | ||
Notes payable and lease obligations | 112 | 121 |
.550% senior notes due March 2030 | ||
Debt Instrument [Line Items] | ||
Notes payable and lease obligations | 118 | 127 |
1.159% senior notes due October 2030 | ||
Debt Instrument [Line Items] | ||
Notes payable and lease obligations | 261 | 282 |
.633% senior notes due April 2031 | ||
Debt Instrument [Line Items] | ||
Notes payable and lease obligations | 266 | 0 |
.843% senior notes due December 2031 | ||
Debt Instrument [Line Items] | ||
Notes payable and lease obligations | 83 | 90 |
.750% senior notes due March 2032 | ||
Debt Instrument [Line Items] | ||
Notes payable and lease obligations | 183 | 198 |
.844% senior notes due April 2033 | ||
Debt Instrument [Line Items] | ||
Notes payable and lease obligations | 107 | 0 |
1.488% senior notes due October 2033 | ||
Debt Instrument [Line Items] | ||
Notes payable and lease obligations | 135 | 146 |
.934% senior notes due December 2034 | ||
Debt Instrument [Line Items] | ||
Notes payable and lease obligations | 87 | 94 |
.830% senior notes due March 2035 | ||
Debt Instrument [Line Items] | ||
Notes payable and lease obligations | 94 | 101 |
1.039% senior notes due April 2036 | ||
Debt Instrument [Line Items] | ||
Notes payable and lease obligations | 88 | 0 |
1.750% senior notes due October 2038 | ||
Debt Instrument [Line Items] | ||
Notes payable and lease obligations | 79 | 85 |
1.122% senior notes due December 2039 | ||
Debt Instrument [Line Items] | ||
Notes payable and lease obligations | 56 | 61 |
1.264% senior notes due April 2041 | ||
Debt Instrument [Line Items] | ||
Notes payable and lease obligations | 89 | 0 |
2.108% subordinated notes due October 2047 | ||
Debt Instrument [Line Items] | ||
Notes payable and lease obligations | 532 | 575 |
.963% subordinated bonds due April 2049 | ||
Debt Instrument [Line Items] | ||
Notes payable and lease obligations | 267 | 289 |
1.560% senior notes due April 2051 | ||
Debt Instrument [Line Items] | ||
Notes payable and lease obligations | 177 | 0 |
Yen-denominated loan variable interest rate due September 2026 | ||
Debt Instrument [Line Items] | ||
Notes payable and lease obligations | 44 | 48 |
Yen-denominated loan variable interest rate due September 2029 | ||
Debt Instrument [Line Items] | ||
Notes payable and lease obligations | $ 222 | $ 240 |
NOTES PAYABLE AND LEASE OBLIG_5
NOTES PAYABLE AND LEASE OBLIGATIONS - Summary of Notes Payable Parenthetical (Details) $ in Millions, ¥ in Billions | Sep. 30, 2021JPY (¥) | May 31, 2021 | Apr. 30, 2021JPY (¥) | Mar. 31, 2021USD ($) | Dec. 31, 2020JPY (¥) |
3.625% senior notes paid May 2021 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate | 3.625% | 3.625% | 3.625% | ||
3.625% senior notes due November 2024 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate | 3.625% | 3.625% | |||
3.25% senior notes due March 2025 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate | 3.25% | 3.25% | |||
1.125% senior sustainability notes due March 2026 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate | 1.125% | 1.125% | 1.125% | ||
Debt instrument, principal amount | $ | $ 400 | ||||
2.875% senior notes due October 2026 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate | 2.875% | 2.875% | |||
3.60% senior notes due April 2030 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate | 3.60% | 3.60% | |||
6.90% senior notes due December 2039 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate | 6.90% | 6.90% | |||
6.45% senior notes due August 2040 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate | 6.45% | 6.45% | |||
4.00% senior notes due October 2046 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate | 4.00% | 4.00% | |||
4.750% senior notes due January 2049 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate | 4.75% | 4.75% | |||
.300% senior notes due September 2025 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate | 0.30% | 0.30% | |||
Debt instrument, principal amount | ¥ 12.4 | ¥ 12.4 | |||
.932% senior notes due January 2027 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate | 0.932% | 0.932% | |||
Debt instrument, principal amount | ¥ 60 | ¥ 60 | |||
.500% senior notes due December 2029 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate | 0.50% | 0.50% | |||
Debt instrument, principal amount | ¥ 12.6 | ¥ 12.6 | |||
.550% senior notes due March 2030 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate | 0.55% | 0.55% | |||
Debt instrument, principal amount | ¥ 13.3 | ¥ 13.3 | |||
1.159% senior notes due October 2030 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate | 1.159% | 1.159% | |||
Debt instrument, principal amount | ¥ 29.3 | ¥ 29.3 | |||
.633% senior notes due April 2031 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate | 0.633% | 0.633% | |||
Debt instrument, principal amount | ¥ 30 | ¥ 30 | |||
.843% senior notes due December 2031 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate | 0.843% | 0.843% | |||
Debt instrument, principal amount | ¥ 9.3 | ¥ 9.3 | |||
.750% senior notes due March 2032 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate | 0.75% | 0.75% | |||
Debt instrument, principal amount | ¥ 20.7 | ¥ 20.7 | |||
.844% senior notes due April 2033 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate | 0.844% | 0.844% | |||
Debt instrument, principal amount | ¥ 12 | ¥ 12 | |||
1.488% senior notes due October 2033 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate | 1.488% | 1.488% | |||
Debt instrument, principal amount | ¥ 15.2 | ¥ 15.2 | |||
.934% senior notes due December 2034 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate | 0.934% | 0.934% | |||
Debt instrument, principal amount | ¥ 9.8 | ¥ 9.8 | |||
.830% senior notes due March 2035 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate | 0.83% | 0.83% | |||
Debt instrument, principal amount | ¥ 10.6 | ¥ 10.6 | |||
1.039% senior notes due April 2036 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate | 1.039% | 1.039% | |||
Debt instrument, principal amount | ¥ 10 | ¥ 10 | |||
1.750% senior notes due October 2038 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate | 1.75% | 1.75% | |||
Debt instrument, principal amount | ¥ 8.9 | ¥ 8.9 | |||
1.122% senior notes due December 2039 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate | 1.122% | 1.122% | |||
Debt instrument, principal amount | ¥ 6.3 | ¥ 6.3 | |||
1.264% senior notes due April 2041 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate | 1.264% | 1.264% | |||
Debt instrument, principal amount | ¥ 10 | ¥ 10 | |||
2.108% subordinated notes due October 2047 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate | 2.108% | 2.108% | |||
Debt instrument, principal amount | ¥ 60 | ¥ 60 | |||
.963% subordinated bonds due April 2049 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate | 0.963% | 0.963% | |||
Debt instrument, principal amount | ¥ 30 | ¥ 30 | |||
1.560% senior notes due April 2051 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate | 1.56% | 1.56% | |||
Debt instrument, principal amount | ¥ 20 | ¥ 20 | |||
Yen-denominated loan variable interest rate due September 2026 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate | 0.41% | 0.43% | |||
Debt instrument, principal amount | ¥ 5 | ¥ 5 | |||
Yen-denominated loan variable interest rate due September 2029 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate | 0.56% | 0.58% | |||
Debt instrument, principal amount | ¥ 25 | ¥ 25 |
NOTES PAYABLE AND LEASE OBLIG_6
NOTES PAYABLE AND LEASE OBLIGATIONS - Summary of Lines of Credit (Details) - 9 months ended Sep. 30, 2021 ¥ in Millions, $ in Millions | USD ($) | JPY (¥) |
$100 million line of credit | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility term | 364 days | |
Line of credit facility, maximum borrowing capacity | $ 100 | |
Line of credit facility, amount outstanding | $ 0 | |
Line of credit facility, interest rate description | The rate quoted by the bank and agreed upon at the time of borrowing | |
100.0 billion yen line of credit | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility term | 5 years | |
Line of credit facility, maximum borrowing capacity | ¥ | ¥ 100,000 | |
Line of credit facility, amount outstanding | ¥ | 0 | |
Line of credit facility, interest rate description | A rate per annum equal to (a) Tokyo interbank market rate (TIBOR) plus, the alternative applicable TIBOR margin during the availability period from the closing date to the commitment termination date or (b) the TIBOR rate offered by the agent to major banks in yen for the applicable period plus, the applicable alternative TIBOR margin during the term out period | |
$1 billion line of credit | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility term | 5 years | |
Line of credit facility, maximum borrowing capacity | $ 1,000 | |
Line of credit facility, amount outstanding | $ 0 | |
Line of credit facility, interest rate description | A rate per annum equal to, at the Company's option, either, (a) London Interbank Offered Rate (LIBOR) for U.S. dollar denominated borrowings or TIBOR for Japanese yen denominated borrowings, in either case adjusted for certain costs, or (b) a base rate determined by reference to the highest of (1) the federal funds rate plus 1/2 of 1%, (2) the rate of interest for such day announced by Mizuho Bank, Ltd. as its prime rate, or (3) the eurocurrency rate for an interest period of one month plus 1.00%, in each case plus an applicable margin | |
$50 million line of credit | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility, maximum borrowing capacity | $ 50 | |
Line of credit facility, amount outstanding | $ 0 | |
Line of credit facility, interest rate description | A rate per annum equal to, at the Company's option, either (a) a rate determined by reference to LIBOR for the interest period relevant to such borrowing or (b) the base rate determined by reference to the highest of (a) the lender's U.S. dollar short-term commercial loan rate, (b) the federal funds rate plus 1/2 of 1% and (c) one-month LIBOR plus 1%. LIBOR is subject to replacement with Secured Overnight Financing Rate (SOFR) under certain circumstances | |
$250 million line of credit | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility term | 364 days | |
Line of credit facility, maximum borrowing capacity | $ 250 | |
Line of credit facility, amount outstanding | $ 0 | |
Line of credit facility, interest rate description | USD three-month LIBOR plus 75 basis points per annum | |
Debt instrument, term | 3 months | |
50.0 billion yen line of credit expiring April 2022 | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility term | 364 days | |
Line of credit facility, maximum borrowing capacity | ¥ | 50,000 | |
Line of credit facility, amount outstanding | ¥ | 0 | |
Line of credit facility, interest rate description | Three-month TIBOR plus 70 basis points per annum | |
Debt instrument, term | 3 months | |
50.0 billion yen line of credit expiring November 2021 | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility term | 364 days | |
Line of credit facility, maximum borrowing capacity | ¥ | 50,000 | |
Line of credit facility, amount outstanding | ¥ | 0 | |
Line of credit facility, interest rate description | Three-month TIBOR plus 70 basis points per annum | |
Debt instrument, term | 3 months | |
$25 million line of credit | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility term | 364 days | |
Line of credit facility, maximum borrowing capacity | $ 25 | |
Line of credit facility, amount outstanding | $ 0 | |
Line of credit facility, interest rate description | USD three-month LIBOR plus 75 basis points per annum | |
Debt instrument, term | 3 months | |
$15 million line of credit | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility term | 364 days | |
Line of credit facility, maximum borrowing capacity | $ 15 | |
Line of credit facility, amount outstanding | $ 0 | |
Line of credit facility, interest rate description | USD three-month LIBOR plus 75 basis points per annum | |
Debt instrument, term | 3 months | |
$300 thousand line of credit | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility term | 364 days | |
Line of credit facility, maximum borrowing capacity | $ 0.3 | |
Line of credit facility, amount outstanding | $ 0 | |
Line of credit facility, interest rate description | USD three-month LIBOR plus 75 basis points per annum | |
Debt instrument, term | 3 months | |
500 million yen line of credit | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility term | 364 days | |
Line of credit facility, maximum borrowing capacity | ¥ | 500 | |
Line of credit facility, amount outstanding | ¥ | 350 | |
Line of credit facility, interest rate description | A rate per annum equal to the short-term prime lending rates of banks appearing on the website for the Bank of Japan on the first day of the applicable period | |
900 million yen line of credit | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility term | 364 days | |
Line of credit facility, maximum borrowing capacity | ¥ | 900 | |
Line of credit facility, amount outstanding | ¥ | 0 | |
Line of credit facility, interest rate description | A rate per annum equal to the short-term prime lending rates of banks appearing on the website for the Bank of Japan on the first day of the applicable period | |
600 million yen line of credit | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility term | 364 days | |
Line of credit facility, maximum borrowing capacity | ¥ | 600 | |
Line of credit facility, amount outstanding | ¥ | ¥ 0 | |
Line of credit facility, interest rate description | A rate per annum equal to the short-term prime lending rates of banks appearing on the website for the Bank of Japan on the first day of the applicable period | |
$30 million line of credit | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility term | 364 days | |
Line of credit facility, maximum borrowing capacity | $ 30 | |
Line of credit facility, amount outstanding | $ 0 | |
Line of credit facility, interest rate description | USD three-month LIBOR plus 75 basis points per annum | |
Lower Limit | 100.0 billion yen line of credit | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility, commitment fee percentage | 0.30% | |
Lower Limit | $1 billion line of credit | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility, commitment fee percentage | 0.085% | |
Upper Limit | $100 million line of credit | ||
Line of Credit Facility [Line Items] | ||
Debt instrument, term | 3 months | |
Upper Limit | 100.0 billion yen line of credit | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility, commitment fee percentage | 0.50% | |
Upper Limit | $1 billion line of credit | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility, commitment fee percentage | 0.225% | |
Upper Limit | $50 million line of credit | ||
Line of Credit Facility [Line Items] | ||
Debt instrument, term | 3 months |
SHAREHOLDERS' EQUITY - Reconcil
SHAREHOLDERS' EQUITY - Reconciliation of Number of Shares of Common Stock (Detail) - shares shares in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Common Stock Issued [Roll Forward] | ||
Balance, beginning of period | 1,351,018 | 1,349,309 |
Exercise of stock options and issuance of restricted shares | 1,544 | 1,546 |
Balance, end of period | 1,352,562 | 1,350,855 |
Treasury Stock [Roll Forward] | ||
Balance, beginning of period | 658,564 | 622,516 |
Balance, end of period | 689,745 | 647,281 |
Shares outstanding, end of period | 662,817 | 703,574 |
Treasury Stock | ||
Treasury Stock [Roll Forward] | ||
Stock acquired under share repurchase program, shares | 32,186 | 26,108 |
Other purchases | 419 | 541 |
Shares issued to AFL Stock Plan | (967) | (1,584) |
Exercise of stock options | (240) | (49) |
Other dispositions | (217) | (251) |
SHAREHOLDERS' EQUITY - Anti-Dil
SHAREHOLDERS' EQUITY - Anti-Dilutive Share-Based Awards Excluded from Calculation of Diluted Earnings Per Share (Detail) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Stockholders' Equity Note [Abstract] | ||||
Anti-dilutive share-based awards | 0 | 592 | 1 | 857 |
SHAREHOLDERS' EQUITY - Addition
SHAREHOLDERS' EQUITY - Additional Information (Detail) - USD ($) shares in Millions, $ in Millions | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Stockholders Equity Note [Line Items] | ||
Common stock, share repurchase, dollar amount | $ 1,676 | $ 1,037 |
Remaining common stock available for purchase under share repurchase authorizations | 67 | |
Share Repurchase Program | ||
Stockholders Equity Note [Line Items] | ||
Stock acquired under share repurchase program, shares | 32.2 | 26.1 |
Common stock, share repurchase, dollar amount | $ 1,700 | $ 1,000 |
SHAREHOLDERS' EQUITY - Changes
SHAREHOLDERS' EQUITY - Changes in Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Accumulated Other Comprehensive Income [Roll Forward] | ||||
Balance, beginning of period | $ 8,019 | $ 6,750 | $ 8,934 | $ 6,615 |
Other comprehensive income (loss) before reclassifications net of tax | (355) | 1,170 | (1,298) | 333 |
Amounts reclassified from accumulated other comprehensive income net of tax | (2) | (3) | 26 | 121 |
Other comprehensive income (loss), net of tax | (357) | 1,167 | (1,272) | 454 |
Balance, end of period | 7,662 | 7,917 | 7,662 | 7,917 |
Unrealized foreign currency translation gains (losses) | ||||
Accumulated Other Comprehensive Income [Roll Forward] | ||||
Balance, beginning of period | (1,661) | (1,469) | (1,109) | (1,623) |
Other comprehensive income (loss) before reclassifications net of tax | (99) | 179 | (651) | 333 |
Amounts reclassified from accumulated other comprehensive income net of tax | 0 | 0 | 0 | 0 |
Other comprehensive income (loss), net of tax | (99) | 179 | (651) | 333 |
Balance, end of period | (1,760) | (1,290) | (1,760) | (1,290) |
Unrealized gains (losses) on fixed maturity securities | ||||
Accumulated Other Comprehensive Income [Roll Forward] | ||||
Balance, beginning of period | 9,992 | 8,532 | 10,361 | 8,548 |
Other comprehensive income (loss) before reclassifications net of tax | (251) | 995 | (632) | 20 |
Amounts reclassified from accumulated other comprehensive income net of tax | (10) | (7) | 2 | 104 |
Other comprehensive income (loss), net of tax | (261) | 988 | (630) | 124 |
Balance, end of period | 9,731 | 9,520 | 9,731 | 9,520 |
Unrealized gains (losses) on derivatives | ||||
Accumulated Other Comprehensive Income [Roll Forward] | ||||
Balance, beginning of period | (33) | (36) | (34) | (33) |
Other comprehensive income (loss) before reclassifications net of tax | 0 | 1 | 0 | (2) |
Amounts reclassified from accumulated other comprehensive income net of tax | 2 | 0 | 3 | 0 |
Other comprehensive income (loss), net of tax | 2 | 1 | 3 | (2) |
Balance, end of period | (31) | (35) | (31) | (35) |
Pension liability adjustment | ||||
Accumulated Other Comprehensive Income [Roll Forward] | ||||
Balance, beginning of period | (279) | (277) | (284) | (277) |
Other comprehensive income (loss) before reclassifications net of tax | (5) | (5) | (15) | (18) |
Amounts reclassified from accumulated other comprehensive income net of tax | 6 | 4 | 21 | 17 |
Other comprehensive income (loss), net of tax | 1 | (1) | 6 | (1) |
Balance, end of period | $ (278) | $ (278) | $ (278) | (278) |
Cumulative effect, period of adoption, adjustment | Accounting Standards Update 2019-04 | ||||
Accumulated Other Comprehensive Income [Roll Forward] | ||||
Balance, beginning of period | 848 | |||
Cumulative effect, period of adoption, adjustment | Unrealized foreign currency translation gains (losses) | Accounting Standards Update 2019-04 | ||||
Accumulated Other Comprehensive Income [Roll Forward] | ||||
Balance, beginning of period | 0 | |||
Cumulative effect, period of adoption, adjustment | Unrealized gains (losses) on fixed maturity securities | Accounting Standards Update 2019-04 | ||||
Accumulated Other Comprehensive Income [Roll Forward] | ||||
Balance, beginning of period | 848 | |||
Cumulative effect, period of adoption, adjustment | Unrealized gains (losses) on derivatives | Accounting Standards Update 2019-04 | ||||
Accumulated Other Comprehensive Income [Roll Forward] | ||||
Balance, beginning of period | 0 | |||
Cumulative effect, period of adoption, adjustment | Pension liability adjustment | Accounting Standards Update 2019-04 | ||||
Accumulated Other Comprehensive Income [Roll Forward] | ||||
Balance, beginning of period | 0 | |||
Cumulative effect, period of adoption, adjusted balance | ||||
Accumulated Other Comprehensive Income [Roll Forward] | ||||
Balance, beginning of period | 7,463 | |||
Cumulative effect, period of adoption, adjusted balance | Unrealized foreign currency translation gains (losses) | ||||
Accumulated Other Comprehensive Income [Roll Forward] | ||||
Balance, beginning of period | (1,623) | |||
Cumulative effect, period of adoption, adjusted balance | Unrealized gains (losses) on fixed maturity securities | ||||
Accumulated Other Comprehensive Income [Roll Forward] | ||||
Balance, beginning of period | 9,396 | |||
Cumulative effect, period of adoption, adjusted balance | Unrealized gains (losses) on derivatives | ||||
Accumulated Other Comprehensive Income [Roll Forward] | ||||
Balance, beginning of period | (33) | |||
Cumulative effect, period of adoption, adjusted balance | Pension liability adjustment | ||||
Accumulated Other Comprehensive Income [Roll Forward] | ||||
Balance, beginning of period | $ (277) |
SHAREHOLDERS' EQUITY - Reclassi
SHAREHOLDERS' EQUITY - Reclassifications Out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||
Net investment gains (losses) | $ (13) | $ (13) | $ 2 | $ 132 | |||||||||
Income tax (expense) or benefit | (225) | 1,303 | (804) | 884 | |||||||||
Net of tax | $ 888 | $ 1,105 | $ 1,293 | $ 2,456 | $ 805 | $ 566 | $ 3,286 | $ 3,826 | |||||
U.S. federal statutory income tax rate | 21.00% | 21.00% | 21.00% | 21.00% | |||||||||
Reclassification Out Of Accumulated Other Comprehensive Income | |||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||
Unrealized gains (losses) on derivatives during period | $ (1) | $ (3) | |||||||||||
Net of tax | 2 | $ 3 | (26) | $ (121) | |||||||||
Reclassification Out Of Accumulated Other Comprehensive Income | Unrealized gains (losses) on available-for-sale securities | |||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||
Net investment gains (losses) | 13 | 13 | (2) | (132) | |||||||||
Income tax (expense) or benefit | (3) | [1] | (6) | [2] | 0 | [1] | 28 | [1] | |||||
Net of tax | 10 | 7 | (2) | (104) | |||||||||
Reclassification Out Of Accumulated Other Comprehensive Income | Unrealized gains (losses) on derivatives | |||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||
Unrealized gains (losses) on derivatives during period | (2) | (4) | |||||||||||
Income tax (expense) or benefit | [1] | 0 | 1 | ||||||||||
Net of tax | (2) | (3) | |||||||||||
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) | [3] | (8) | (7) | (27) | (22) | ||||||||
Acquisition and operating expenses, prior service (cost) credit | [3] | 0 | 0 | 0 | 0 | ||||||||
Income tax (expense) or benefit | 2 | [1] | 3 | [2] | 6 | [1] | 5 | [1] | |||||
Net of tax | $ (6) | $ (4) | $ (21) | $ (17) | |||||||||
[1] | Based on 21% tax rate | ||||||||||||
[2] | Based on 21% tax rate, with a cumulative adjustment to the first six months of 2020 due to the effects of Final and Proposed Regulations released on September 29, 2020 by the U.S. Treasury and Internal Revenue Service and addressing, among other items, the allocation of insurance expenses in the calculation of the foreign tax credit limitation. See Note 10 of the Notes to the Consolidated Financial Statements in the Company's 2020 Annual Report on Form 10-K. | ||||||||||||
[3] | 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 | 9 Months Ended | ||
Feb. 28, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Proceeds from stock options exercised | $ 20 | $ 9 | ||
Tax benefit from exercise of stock options | $ 16 | $ 19 | ||
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 | 75,000 | |||
Share-based compensation arrangement by share-based payment award, maximum number of shares issuable other than options and stock appreciation rights | 38,000 | |||
Shares available for future grants under the long-term incentive plan | 36,700 | |||
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 | $ 45 | |||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, nonvested, number, shares | 2,615 | 2,580 | ||
Employee service share-based compensation, nonvested awards, compensation cost not yet recognized, period for recognition | 1 year 8 months 12 days | |||
Restricted stock awards, grants in period | 1,454 | |||
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 | $ 19 | |||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, nonvested, number, shares | 1,700 | |||
Restricted stock awards, grants in period | 474 |
SHARE-BASED COMPENSATION - Stoc
SHARE-BASED COMPENSATION - Stock Options Outstanding and Exercisable (Detail) $ / shares in Units, shares in Thousands, $ in Millions | 9 Months Ended |
Sep. 30, 2021USD ($)$ / sharesshares | |
Share-based Payment Arrangement [Abstract] | |
Options Outstanding - Stock Option Shares | shares | 2,317 |
Options Outstanding - Weighted-Average Remaining Term (Yrs) | 3 years 7 months 6 days |
Options Outstanding - Aggregate Intrinsic Value | $ | $ 49 |
Options Outstanding - Weighted-Average Exercise Price Per Share | $ / shares | $ 30.87 |
Options Exercisable - Stock Option Shares | shares | 2,317 |
Options Exercisable - Weighted-Average Remaining Term (Yrs.) | 3 years 7 months 6 days |
Options Exercisable - Aggregate Intrinsic Value | $ | $ 49 |
Options Exercisable - Weighted-Average Exercise Price Per Share | $ / shares | $ 30.87 |
SHARE-BASED COMPENSATION - Rest
SHARE-BASED COMPENSATION - Restricted Stock Activity (Details) - Restricted Stock shares in Thousands | 9 Months Ended |
Sep. 30, 2021$ / sharesshares | |
Shares | |
Beginning Balance | shares | 2,580 |
Granted | shares | 1,454 |
Canceled | shares | (102) |
Vested | shares | (1,317) |
Ending Balance | shares | 2,615 |
Weighted-Average Grant-Date Fair Value Per Share | |
Beginning Balance | $ / shares | $ 48.57 |
Granted | $ / shares | 47.70 |
Cancelled | $ / shares | 48.89 |
Vested | $ / shares | 45.91 |
Ending Balance | $ / shares | $ 49.20 |
BENEFIT PLANS - Additional Info
BENEFIT PLANS - Additional Information (Detail) - USD ($) $ in Millions | Jan. 01, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2014 | Sep. 30, 2021 | Sep. 30, 2020 |
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 | |||||
Net periodic (benefit) cost, excluding service cost | $ 4 | $ 6 | $ 18 | $ 18 | ||
Lower Limit | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Health care plan, retirement age and years of service combined years for eligibility (rule of 80) | 80 years | |||||
Health care plan, retirement age for eligibility, (in years) | 55 years | |||||
Health care plan, number of years of service for eligibility | 15 years | |||||
Upper Limit | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Percentage of matching contributions by the Company to employee's contributions to 401(k) plan | 4.00% | |||||
Japan | Pension Plan | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Employer contributions | 29 | |||||
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 | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Other Postretirement Benefits Plan | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | $ 0 | $ 0 | $ 0 | $ 0 |
Interest cost | 0 | 0 | 1 | 1 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortization of net actuarial loss | 0 | 0 | 2 | 1 |
Net periodic (benefit) cost | 0 | 0 | 3 | 2 |
Japan | Pension Plan | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | 6 | 6 | 18 | 18 |
Interest cost | 1 | 1 | 3 | 3 |
Expected return on plan assets | (2) | (2) | (6) | (6) |
Amortization of net actuarial loss | 1 | 1 | 2 | 3 |
Net periodic (benefit) cost | 6 | 6 | 17 | 18 |
U.S. | Pension Plan | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | 7 | 7 | 21 | 21 |
Interest cost | 8 | 9 | 24 | 25 |
Expected return on plan assets | (11) | (9) | (31) | (27) |
Amortization of net actuarial loss | 7 | 6 | 23 | 18 |
Net periodic (benefit) cost | $ 11 | $ 13 | $ 37 | $ 37 |
COMMITMENTS AND CONTINGENT LI_2
COMMITMENTS AND CONTINGENT LIABILITIES - Additional Information (Details) $ in Millions, ¥ in Billions | 3 Months Ended | ||
Sep. 30, 2021JPY (¥) | Sep. 30, 2021USD ($) | Mar. 31, 2017USD ($) | |
Commitments and Contingencies Disclosure [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, loss in period | $ 14 | ||
Mainframe and server computer operations and support | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Outsourcing agreement, remaining term | 4 years | 4 years | |
Outsourcing agreement, aggregate remaining cost | ¥ 29.3 | $ 262 | |
Management consulting and technology services company application maintenance and development services | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Outsourcing agreement, remaining term | 6 years | 6 years | |
Outsourcing agreement, aggregate remaining cost | ¥ 16.9 | $ 151 | |
Enterprise software licensing agreement | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Outsourcing agreement, remaining term | 3 years | 3 years | |
Outsourcing agreement, aggregate remaining cost | ¥ 1.8 | $ 16 |