Document And Entity Information
Document And Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 18, 2016 | Jun. 30, 2015 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2,015 | ||
Entity Registrant Name | LINCOLN NATIONAL CORP | ||
Entity Central Index Key | 59,558 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Common Stock, Shares Outstanding | 240,956,843 | ||
Entity Public Float | $ 14.8 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Available-for-sale securities, at fair value: | ||
Fixed maturity securities (amortized cost: 2015 - $81,993; 2014 - $78,609) | $ 84,964 | $ 86,240 |
Variable interest entities' fixed maturity securities (amortized cost: 2015 - $596; 2014 - $587) | 598 | 598 |
Equity securities (cost: 2015 - $226; 2014 - $216) | 237 | 231 |
Trading securities | 1,854 | 2,065 |
Mortgage loans on real estate | 8,678 | 7,574 |
Real estate | 17 | 20 |
Policy loans | 2,545 | 2,670 |
Derivative investments | 1,537 | 1,860 |
Other investments | 1,778 | 1,709 |
Total investments | 102,208 | 102,967 |
Cash and invested cash | 3,146 | 3,919 |
Deferred acquisition costs and value of business acquired | 9,510 | 8,207 |
Premiums and fees receivable | 376 | 473 |
Accrued investment income | 1,070 | 1,049 |
Reinsurance recoverables | 5,623 | 5,730 |
Funds withheld reinsurance assets | 629 | 649 |
Goodwill | 2,273 | 2,273 |
Other assets | 3,483 | 2,845 |
Separate account assets | 123,619 | 125,265 |
Total assets | 251,937 | 253,377 |
Liabilities | ||
Future contract benefits | 20,708 | 20,057 |
Other contract holder funds | 77,362 | 75,512 |
Short-term debt | 250 | |
Long-term debt | 5,582 | 5,270 |
Reinsurance related embedded derivatives | 87 | 150 |
Funds withheld reinsurance liabilities | 638 | 764 |
Deferred gain on business sold through reinsurance | 98 | 171 |
Payables for collateral on investments | 4,657 | 4,409 |
Variable interest entities' liabilities | 4 | 13 |
Other liabilities | 5,565 | 5,776 |
Separate account liabilities | 123,619 | 125,265 |
Total liabilities | $ 238,320 | $ 237,637 |
Contingencies and Commitments (See Note 13) | ||
Stockholders Equity | ||
Preferred stock - 10,000,000 shares authorized | $ 0 | $ 0 |
Common stock - 800,000,000 shares authorized; 243,835,893 and 256,551,440 shares issued and outstanding as of September 30, 2015, and December 31, 2014, respectively | 6,298 | 6,622 |
Retained earnings | 6,474 | 6,022 |
Accumulated other comprehensive income (loss) | 845 | 3,096 |
Total stockholders' equity | 13,617 | 15,740 |
Total liabilities and stockholders' equity | $ 251,937 | $ 253,377 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Available-for-sale securities, at fair value: | ||
Fixed maturity securities (amortized cost) | $ 81,993 | $ 78,609 |
Variable interest entities' fixed maturity securities (amortized cost) | 596 | 587 |
Equity securities (cost) | $ 226 | $ 216 |
Stockholders Equity | ||
Preferred stock - shares authorized (in shares) | 10,000,000 | 10,000,000 |
Common stock - shares authorized (in shares) | 800,000,000 | 800,000,000 |
Common stock - shares issued (in shares) | 243,835,893 | 256,551,440 |
Common stock - shares outstanding (in shares) | 243,835,893 | 256,551,440 |
Series A Preferred Stock [Member] | ||
Stockholders Equity | ||
Series A preferred stock - shares outstanding (in shares) |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income (Loss) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues | |||
Insurance premiums | $ 3,246 | $ 2,988 | $ 2,687 |
Fee income | 5,045 | 4,673 | 4,069 |
Net investment income | 4,827 | 4,859 | 4,754 |
Realized gain (loss): | |||
Total other-than-temporary impairment losses on securities | (80) | (26) | (80) |
Portion of loss recognized in other comprehensive income | 26 | 10 | 10 |
Net other-than-temporary impairment losses on securities recognized in earnings | (54) | (16) | (70) |
Realized gain (loss), excluding other-than-temporary impairment losses on securities | (97) | 16 | (65) |
Total realized gain (loss) | (151) | (135) | |
Amortization of deferred gain on business sold through reinsurance | 74 | 74 | 74 |
Other revenues | 531 | 960 | 520 |
Total revenues | 13,572 | 13,554 | 11,969 |
Expenses | |||
Interest credited | 2,508 | 2,532 | 2,510 |
Benefits | 5,044 | 4,679 | 3,862 |
Commissions and other expenses | 4,318 | 4,079 | 3,701 |
Interest and debt expense | 272 | 267 | 265 |
Total expenses | 12,142 | 11,557 | 10,338 |
Income (loss) from continuing operations before taxes | 1,430 | 1,997 | 1,631 |
Federal income tax expense (benefit) | 276 | 483 | 387 |
Income (loss) from continuing operations | 1,154 | 1,514 | 1,244 |
Income (loss) from discontinued operations, net of federal income taxes | 1 | ||
Net income (loss) | 1,154 | 1,515 | 1,244 |
Unrealized investment gains (losses) | (2,229) | 1,591 | (2,335) |
Foreign currency translation adjustment | (2) | 2 | (1) |
Funded status of employee benefit plans | (20) | (60) | 91 |
Total other comprehensive income (loss), net of tax | (2,251) | 1,533 | (2,245) |
Comprehensive income (loss) | $ (1,097) | $ 3,048 | $ (1,001) |
Earnings (Loss) Per Common Share - Basic | |||
Income (loss) from continuing operations (in dollars per share) | $ 4.60 | $ 5.81 | $ 4.68 |
Net income (loss) (in dollars per share) | 4.60 | 5.81 | 4.68 |
Earnings (Loss) Per Common Share - Diluted | |||
Income (loss) from continuing operations (in dollars per share) | 4.51 | 5.67 | 4.52 |
Net income (loss) (in dollars per share) | 4.51 | 5.67 | 4.52 |
Cash dividends declared per common share | $ 0.85 | $ 0.68 | $ 0.52 |
Consolidated Statements Of Stoc
Consolidated Statements Of Stockholders' Equity - USD ($) $ in Millions | Common Stock | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total |
Balance as of beginning-of-year at Dec. 31, 2012 | $ 7,121 | $ 4,044 | $ 3,808 | |
Stock compensation/issued for benefit plans | 69 | |||
Net income (loss) | 1,244 | $ 1,244 | ||
Retirement of common stock/cancellation of shares | (314) | (136) | ||
Common stock dividends declared (2015 - $0.60; 2014 - $0.48) | (139) | |||
Other comprehensive income (loss), net of tax | (2,245) | (2,245) | ||
Balance as of end-of-period at Dec. 31, 2013 | 6,876 | 5,013 | 1,563 | 13,452 |
Stock compensation/issued for benefit plans | 69 | |||
Net income (loss) | 1,515 | 1,515 | ||
Retirement of common stock/cancellation of shares | (323) | (327) | ||
Common stock dividends declared (2015 - $0.60; 2014 - $0.48) | (179) | |||
Other comprehensive income (loss), net of tax | 1,533 | 1,533 | ||
Balance as of end-of-period at Dec. 31, 2014 | 6,622 | 6,022 | 3,096 | 15,740 |
Stock compensation/issued for benefit plans | 88 | |||
Net income (loss) | 1,154 | 1,154 | ||
Retirement of common stock/cancellation of shares | (412) | (488) | ||
Common stock dividends declared (2015 - $0.60; 2014 - $0.48) | (214) | |||
Other comprehensive income (loss), net of tax | (2,251) | (2,251) | ||
Balance as of end-of-period at Dec. 31, 2015 | $ 6,298 | $ 6,474 | $ 845 | $ 13,617 |
Consolidated Statements Of Sto6
Consolidated Statements Of Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Stockholders' Equity [Abstract] | |||
Common dividends declared per share | $ 0.85 | $ 0.68 | $ 0.52 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash Flows from Operating Activities | |||
Net income (loss) | $ 1,154 | $ 1,515 | $ 1,244 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Deferred acquisition costs, value of business acquired, deferred sales inducements and deferred front-end loads deferrals and interest, net of amortization | (119) | (517) | (529) |
Trading securities purchases, sales and maturities, net | 146 | 309 | 151 |
Change in premiums and fees receivable | 97 | (53) | (40) |
Change in accrued investment income | (21) | (20) | (14) |
Change in future contract benefits and other contract holder funds | 991 | 524 | (634) |
Change in reinsurance related assets and liabilities | (252) | (9) | 300 |
Change in federal income tax accruals | 61 | 229 | 377 |
Realized (gain) loss | 151 | 135 | |
Amortization of deferred gain on business sold through reinsurance | (74) | (74) | (74) |
Proceeds From Reinsurance Recapture | 422 | ||
Other | 109 | 200 | (117) |
Net cash provided by (used in) operating activities | 2,243 | 2,526 | 799 |
Cash Flows from Investing Activities | |||
Purchases of available-for-sale securities | (9,429) | (8,636) | (10,880) |
Sales of available-for-sale securities | 1,351 | 1,118 | 975 |
Maturities of available-for-sale securities | 4,408 | 5,212 | 6,171 |
Purchases of other investments | (15,323) | (4,925) | (2,543) |
Sales or maturities of other investments | 14,524 | 4,489 | 2,610 |
Increase (decrease) in payables for collateral on investments | 251 | 1,019 | (943) |
Proceeds from sale of subsidiaries/businesses, net of cash disposed | 75 | ||
Other | (80) | (82) | (100) |
Net cash provided by (used in) investing activities | (4,223) | (1,805) | (4,710) |
Cash Flows from Financing Activities | |||
Payment of long-term debt, including current maturities | (250) | (500) | |
Issuance of long-term debt, net of issuance costs | 298 | 393 | |
Proceeds from sales leaseback transaction | 47 | 83 | |
Deposits of fixed account values, including the fixed portion of variable | 10,769 | 10,388 | 10,492 |
Withdrawals of fixed account values, including the fixed portion of variable | (6,126) | (5,840) | (5,296) |
Transfers to and from separate accounts, net | (2,474) | (2,509) | (3,001) |
Common stock issued for benefit plans and excess tax benefits | 47 | 32 | 35 |
Repurchase of common stock | (900) | (650) | (450) |
Dividends paid to common and preferred stockholders | (204) | (170) | (128) |
Net cash provided by (used in) financing activities | 1,207 | 834 | 2,045 |
Net increase (decrease) in cash and invested cash | (773) | 1,555 | (1,866) |
Cash and invested cash as of beginning-of-year | 3,919 | 2,364 | 4,230 |
Cash and invested cash as of end-of-year | $ 3,146 | $ 3,919 | $ 2,364 |
Nature Of Operations And Basis
Nature Of Operations And Basis Of Presentation | 12 Months Ended |
Dec. 31, 2015 | |
Nature Of Operations And Basis Of Presentation [Abstract] | |
Nature Of Operations And Basis Of Presentation | 1. Nature of Operations, Basis of Presentation and Summary of Significant Accounting Policies Nature of Operations Lincoln National Corporation and its majority-owned subsidiaries (“LNC” or the “Company,” which also may be referred to as “we,” “our” or “us”) operate multiple insurance businesses through four business segments. See Note 21 for additional details. The collective group of businesses uses “Lincoln Financial Group” as its marketing identity. Through our business segments, we sell a wide range of wealth protection, accumulation and retirement income products and solutions. These products include fixed and indexed annuities, variable annuities, universal life insurance (“UL”), variable universal life insurance (“VUL”), linked-benefit UL , indexed universal life insurance (“IUL”), term life insurance, employer-sponsored retirement plans and services, and gro up life, disability and dental. Basis of Presentation The accompanying consolidated financial statements are prepared in accordance with United States of America generally accepted accounting principles (“GAAP”). Certain GAAP policies, which significantly affect the determination of financial condition , results of operations and cash flows, are summarized below. Summary of Significant Accounting Policies Principles of Consolidation The accompanying consolidated financial statements include the accounts of LNC and all other entities in which we have a controlling financial interest and any variable interest entities (“VIEs”) in which we are the primary beneficiary. Entities in which we do not have a controlling financial interest and do not exercise significant management influence over the operating and financing decisions are reported using the equity method. All material inter-company accounts and transactions have been eliminated in consolidation. Our involvement with VIEs is primarily to invest in assets that allow us to gain exposure to a broadly diversified portfolio of asset classes. A VIE is an entity that does not have sufficient equity to finance its own activities without additional financial support or where investors lack certain characteristics of a controlling financial interest. We assess our contractual, ownership or other interests in a VIE to determine if our interest participates in the variability the VIE was designed to absorb and pass onto variable interest holders. We perform an ongoing qualitative assessment of our variable interests in VIEs to determine whether we have a controlling financial interest and would therefore be considered the primary beneficiary of the VIE. If we determine we are the primary beneficiary of a VIE, we consolidate the assets and liabilities of the VIE in our consolidated financial statements. Accounting Estimates and Assumptions The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions affecting the reported amounts of assets and liabilities and the disclosures of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses for the reporting period. Those estimates are inherently subject to change and actual results could differ from those estimates. Included among the material (or potentially material) reported amounts and disclosures that require extensive use of estimates are: fair value of certain invested assets and derivatives, other-than-temporary impairment (“OTTI”) and asset valuation allowances, deferred acquisition costs (“DAC”) , value of business acquired (“VOBA”) , deferred sales inducements (“DSI”), goodwill, future contract benefits, other contract holder funds including deferred front-end loads (“DFEL”) , pension plans, stock-based incentive compensation, income taxes and the potential effects of resolving litigated matters. Business Combinations We use the acquisition method of accounting for all business combination transactions, and accordingly, recognize the fair values of assets acquired, liabilities assumed and any noncontrolling interests in our consolidated financial statements. The allocation of fair values may be subject to adjustment after the initial allocation for up to a one-year period as more information becomes available relative to the fair values as of the acquisition date. The consolidated financial statements include the results of operations of any acquired company since the acquisition date. Fair Value Measurement Our measurement of fair value is based on assumptions used by market participants in pricing the asset or liability, which may include inherent risk, restrictions on the sale or use of an asset or non-performance risk (“NPR”), which would include our own credit risk. Our estimate of an exchange price is the price in an orderly transaction between market participants to sell the asset or transfer the liability (“exit price”) in the principal market, or the most advantageous market in the absence of a principal market, for that asset or liability, as opposed to the price that would be paid to acquire the asset or receive a liability (“entry price”). Pursuant to the Fair Value Measurements and Disclosures Topic of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification TM (“ASC”), we categorize our financial instruments carried at fair value into a three-level fair value hierarchy, based on the priority of inputs to the respective valuation technique. The three-level hierarchy for fair value measurement is defined as follows: · Level 1 – inputs to the valuation methodology are quoted prices available in active markets for identical investments as of the reporting date, except for large holdings subject to “blockage discounts” that are excluded; · Level 2 – inputs to the valuation methodology are other than quoted prices in active markets, which are either directly or indirectly observable as of the reporting date, and fair value can be determined through the use of models or other valuation methodologies; and · Level 3 – inputs to the valuation methodology are unobservable inputs in situations where there is little or no market activity for the asset or liability, and we make estimates and assumptions related to the pricing of the asset or liability, including assumptions regarding risk. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the investment. When a determination is made to classify an asset or liability within Level 3 of the fair value hierarchy, the determination is based upon the significance of the unobservable inputs to the overall fair value measurement. Because certain securities trade in less liquid or illiquid markets with limited or no pricing information, the determination of fair value for these securities is inherently more difficult. However, Level 3 fair value investments may include, in addition to the unobservable or Level 3 inputs, observable components, which are components that are actively quoted or can be validated to market-based sources. Available-For-Sale Securities – Fair Valuation Methodologies and Associated Inputs Securities classified as available -for-sale (“AFS”) consist of fixed maturity and equity securities and are stated at fair value with unrealized gains and losses included within accumulated other comprehensive income (loss) (“AOCI”), net of associated DAC, VOBA, DSI , future contract benefits, other contract holder funds and deferred income taxes. We measure the fair value of our securities classified as AFS based on assumptions used by market participants in pricing the security. The most appropriate valuation methodology is selected based on the specific characteristics of the fixed maturity or equity security, and we consistently apply the valuation methodology to measure the security’s fair value. Our fair value measurement is based on a market approach that utilizes prices and other relevant information generated by market transactions involving identical or comparable securities. Sources of inputs to the market approach primarily include third-party pricing services, independent broker quotations or pricing matrices. We do not adjust prices received from third parties; however, we do analyze the third-party pricing services’ valuation methodologies and related inputs and perform additional evaluation to determine the appropriate level within the fair value hierarchy. The observable and unobservable inputs to our valuation methodologies are based on a set of standard inputs that we generally use to evaluate all of our AFS securities. Observable inputs include benchmark yields, reported trades, broker-dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data. In addition, market indicators, industry and economic events are monitored, and further market data is acquired if certain triggers are met. For certain security types, additional inputs may be used, or some of the inputs described above may not be applicable. For private placement securities, we use pricing matrices that utilize observable pricing inputs of similar public securities and Treasury yields as inputs to the fair value measurement. Depending on the type of security or the daily market activity, standard inputs may be prioritized differently or may not be available for all AFS securities on any given day. For broker-quoted only securities, non-binding quotes from market makers or broker-dealers are obtained from sources recognized as market participants. For securities trading in less liquid or illiquid markets with limited or no pricing information, we use unobservable inputs to measure fair value. The following summarizes our fair valuation methodologies and associated inputs, which are particular to the specified security type and are in addition to the defined standard inputs to our valuation methodologies for all of our AFS securities discussed above: · Corporate bonds and U.S. g overnment bonds – We also use Trade Reporting and Compliance Engine TM reported tables for our corporate bonds and vendor trading platform data for our U.S. g overnment bonds. · Mortg age- and asset-backed securities (“ABS”) – We also utilize additional inputs, which include new issues data, monthly payment information and monthly collateral performance, including prepayments, severity, delinquencies, step-down features and over collateralization features for each of our mortgage-backed securities (“MBS”), which include collateralized mortgage obligations and mortgage pass through securities backed by residential mortgages (“RMBS”), commercial mortgage-backed securities (“CMBS”) , collateralized loan obligations (“CLOs”) and collateralized debt obligations (“C D Os”). · State and municipal bonds – We also use additional inputs that include information from the Municipal Securities Rule Making Board, as well as material event notices, new issue data, issuer financial statements and Municipal Market Data benchmark yields for our state and municipal bonds. · Hybrid and redeemable preferred and equity securities – We also utilize additional inputs of exchange prices (underlying and common stock of the same issuer) for our hybrid and redeemable preferred and equity securities . In order to validate the pricing information and broker-dealer quotes, we employ, where possible, procedures that include comparisons with similar observable positions, comparisons with subsequent sales and observations of general market movements for those security classes. We have policies and procedures in place to review the process that is utilized by our third-party pricing service and the output that is provided to us by the pricing service. On a periodic basis, we test the pricing for a sample of securities to evaluate the inputs and assumptions used by the pricing service, and we perform a comparison of the pricing service output to an alternative pricing source. We also evaluate prices provided by our primary pricing service to ensure that they are not stale or unreasonable by reviewing the prices for unusual changes from period to period based on certain parameters or for lack of change from one period to the next. AFS Securities – Evaluation for Recovery of Amortized Cost We regularly review our AFS securities for declines in fair value that we determine to be other-than-temporary. For an equity security, if we do not have the ability and intent to hold the security for a sufficient period of time to allow for a recovery in value, we conclude that an OTTI has occurred and the amortized cost of the equity security is written down to the current fair value, with a corresponding charge to realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). When assessing our ability and intent to hold the equity security to recovery, we consider, among other things, the severity and duration of the decline in fair value of the equity security as well as the cause of the decline, a fundamental analysis of the liquidity, and business prospects and overall financial condition of the issuer. For our fixed maturity AFS securities (also referred to as “debt securities”), we generally consider the following to determine whether our debt securities with unrealized losses are other-than-temporarily impaired: · The estimated range and average period until recovery; · The estimated range and average holding period to maturity; · Remaining payment terms of the security; · Current delinquencies and nonperforming assets of underlying collateral; · Expected future default rates; · Collateral value by vintage, geographic region, industry concentration or property type; · Subordination levels or other credit enhancements as of the balance sheet date as compared to origination; and · Contractual and regulatory cash obligations. For a debt security, if we intend to sell a security, or it is more likely than not we will be required to sell a debt security before recovery of its amortized cost basis and the fair value of the debt security is below amortized cost, we conclude that an OTTI has occurred and the amortized cost is written down to current fair value, with a corresponding charge to realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). If we do not intend to sell a debt security, or it is not more likely than not we will be required to sell a debt security before recovery of its amortized cost basis but the present value of the cash flows expected to be collected is less than the amortized cost of the debt security (referred to as the credit loss), we conclude that an OTTI has occurred and the amortized cost is written down to the estimated recovery value with a corresponding charge to realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss), as this amount is deemed the credit portion of the OTTI. The remainder of the decline to fair value is recorded in other comprehensive income (“OCI”) to unrealized OTTI on AFS securities on our Consolidated Statements of Stockholders’ Equity, as this amount is considered a noncredit (i.e., recoverable) impairment. When assessing our intent to sell a debt security, or if it is more likely than not we will be required to sell a debt security before recovery of its cost basis, we evaluate facts and circumstances such as, but not limited to, decisions to reposition our security portfolio, sales of securities to meet cash flow needs and sales of securities to capitalize on favorable pricing. Management considers the following as part of the evaluation: · The current economic environment and market conditions; · Our business strategy and current business plans; · The nature and type of security, including expected maturities and exposure to general credit, liquidity, market and interest rate risk; · Our analysis of data from financial models and other internal and industry sources to evaluate the current effectiveness of our hedging and overall risk management strategies; · The current and expected timing of contractual maturities of our assets and liabilities, expectations of prepayments on investments and expectations for surrenders and withdrawals of life insurance policies and annuity contracts; · The capital risk limits approved by management; and · Our current financial condition and liquidity demands. In order to determine the amount of the credit loss for a debt security, we calculate the recovery value by performing a discounted cash flow analysis based on the current cash flows and future cash flows we expect to recover. The discount rate is the effective interest rate implicit in the underlying debt security. The effective interest rate is the original yield, or the coupon if the debt security was previously impaired. See the discussion below for additional information on the methodology and significant inputs, by security type, that we use to determine the amount of a credit loss. To determine the recovery period of a debt security, we consider the facts and circumstances surrounding the underlying issuer including, but not limited to, the following: · Historical and implied volatility of the security; · Length of time and extent to which the fair value has been less than amortized cost; · Adverse conditions specifically related to the security or to specific conditions in an industry or geographic area; · Failure, if any, of the issuer of the security to make scheduled payments; and · Recoveries or additional declines in fair value subsequent to the balance sheet date. In periods subsequent to the recognition of an OTTI, the AFS security is accounted for as if it had been purchased on the measurement date of the OTTI. Therefore, for the fixed maturity AFS security, the original discount or reduced premium is reflected in net investment income over the contractual term of the investment in a manner that produces a constant effective yield. To determine recovery value of a corporate bond, CLO or CDO, we perform additional analysis related to the underlying issuer including, but not limited to, the following: · Fundamentals of the issuer to determine what we would recover if they were to file bankruptcy versus the price at which the market is trading; · Fundamentals of the industry in which the issuer operates; · Earnings multiples for the given industry or sector of an industry that the underlying issuer operates within, divided by the outstanding debt to determine an expected recovery value of the security in the case of a liquidation; · Expected cash flows of the issuer (e.g., whether the issuer has cash flows in excess of what is required to fund its operations); · Expectations regarding defaults and recovery rates; · Changes to the rating of the security by a rating agency; and · Additional market information (e.g., if there has been a replacement of the corporate debt security). Each quarter we review the cash flows for the MBS to determine whether or not they are sufficient to provide for the recovery of our amortized cost. We revise our cash flow projections only for those securities that are at most risk for impairment based on current credit enhancement and trends in the underlying collateral performance. To determine recovery value of a MBS, we perform additional analysis related to the underlying issuer including, but not limited to, the following: · Discounted cash flow analysis based on the current cash flows and future cash flows we expect to recover; · Level of creditworthiness of the home equity loans or residential mortgages that back an RMBS or commercial mortgages that back a CMBS; · Susceptibility to fair value fluctuations for changes in the interest rate environment; · Susceptibility to reinvestment risks, in cases where market yields are lower than the securities’ book yield earned; · Susceptibility to reinvestment risks, in cases where market yields are higher than the book yields earned on a security; · Expectations of sale of such a security where market yields are higher than the book yields earned on a security; and · Susceptibility to variability of prepayments. When evaluating MBS and mortgage-related ABS, we consider a number of pool-specific factors as well as market level factors when determining whether or not the impairment on the security is temporary or other-than-temporary. The most important factor is the performance of the underlying collateral in the security and the trends of that performance in the prior periods. We use this information about the collateral to forecast the timing and rate of mortgage loan defaults, including making projections for loans that are already delinquent and for those loans that are currently performing but may become delinquent in the future. Other factors used in this analysis include the credit characteristics of borrowers, geographic distribution of underlying loans and timing of liquidations by state. Once default rates and timing assumptions are determined, we then make assumptions regarding the severity of a default if it were to occur. Factors that impact the severity assumption include expectations for future home price appreciation or depreciation, loan size, first lien versus second lien, existence of loan level private mortgage insurance, type of occupancy and geographic distribution of loans. Once default and severity assumptions are determined for the security in question, cash flows for the underlying collateral are projected including expected defaults and prepayments. These cash flows on the collateral are then translated to cash flows on our tranche based on the cash flow waterfall of the entire capital security structure. If this analysis indicates the entire principal on a particular security will not be returned, the security is reviewed for OTTI by comparing the expected cash flows to amortized cost. To the extent that the security has already been impaired or was purchased at a discount, such that the amortized cost of the security is less than or equal to the present value of cash flows expected to be collected, no impairment is required. Otherwise, if the amortized cost of the security is greater than the present value of the cash flows expected to be collected, and the security was not purchased at a discount greater than the expected principal loss, then impairment is recognized. We further monitor the cash flows of all of our AFS securities backed by mortgages on an ongoing basis. We also perform detailed analysis on all of our subprime, Alt-A, non-agency residential MBS and on a significant percentage of our AFS securities backed by pools of commercial mortgages. The detailed analysis includes revising projected cash flows by updating the cash flows for actual cash received and applying assumptions with respect to expected defaults, foreclosures and recoveries in the future. These revised projected cash flows are then compared to the amount of credit enhancement (subordination) in the structure to determine whether the amortized cost of the security is recoverable. If it is not recoverable, we record an impairment of the security. Trading Securities Trading securities consist of fixed maturity and equity securities in designated portfolios, some of which support modified coinsurance (“Modco”) and coinsurance with funds withheld (“CFW”) reinsurance arrangements. Investment results for the portfolios that support Modco and CFW reinsurance arrangements, including gains and losses from sales, are passed directly to the reinsurers pursuant to contractual terms of the reinsurance arrangements. Trading securities are carried at fair value and changes in fair value and changes in the fair value of embedded derivative liabilities associated with the underlying reinsurance arrangements, are recorded in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss) as they occur. Alternative Investments Alternative investments, which consist primarily of investments in limited partnerships (“LPs”), are included in other investments on our Consolidated Balance Sheets. We account for our investments in LPs using the equity method to determine the carrying value. Recognition of alternative investment income is delayed due to the availability of the related financial statements, which are generally obtained from the partnerships’ general partners. As a result, our venture capital, real estate and oil and gas portfolios are generally on a three-month delay and our hedge funds are on a one-month delay. In addition, the impact of audit adjustments related to completion of calendar-year financial statement audits of the investees are typically received during the second quarter of each calendar year. Accordingly, our investment income from alternative investments for any calendar-year period may not include the complete impact of the change in the underlying net assets for the partnership for that calendar-year period. Payables for Collateral on Investments When we enter into collateralized financing transactions on our investments, a liability is recorded equal to the cash or non-cash collateral received. This liability is included within payables for collateral on investments on our Consolidated Balance Sheets. Income and expenses associated with these transactions are recorded as investment income and investment expenses within net investment income on our Consolidated Statem ents of Comprehensive Income (Loss). Changes in payables for collateral on investments are reflected within cash flows from investing activities on our Consolidated Statements of Cash Flows. Mortgage Loans on Real Estate Mortgage loans on real estate are carried at unpaid principal balances adjusted for amortization of premiums and accretion of discounts and are net of valuation allowances. Interest income is accrued on the principal balance of the loan based on the loan’s contractual interest rate. Premiums and discounts are amortized using the effective yield method over the life of the loan. Interest income and amortization of premiums and discounts are reported in net investment income on our Consolidated Statements of Comprehensive Income (Loss) along with mortgage loan fees, which are recorded as they are incurred. Our commercial loan portfolio is comprised of long-term loans secured by existing commercial real estate. As such, it does not exhibit risk characteristics unique to mezzanine, construction, residential, agricultural, land or other types of real estate loans. We believe all of the loans in our portfolio share three primary risks: borrower creditworthiness; sustainability of the cash flow of the property; and market risk; therefore, our methods for monitoring and assessing credit risk are consistent for our entire portfolio. Loans are considered impaired when it is probable that, based upon current information and events, we will be unable to collect all amounts due under the contractual terms of the loan agreement. When we determine that a loan is impaired, a valuation allowance is established for the excess carrying value of the loan over its estimated value. The loan’s estimated value is based on: the present value of expected future cash flows discounted at the loan’s effective interest rate; the loan’s observable market price; or the fair value of the loan’s collateral. Valuation allowances are maintained at a level we believe is adequate to absorb estimated probable credit losses of each specific loan. Our periodic evaluation of the adequacy of the allowance for losses is based on our past loan loss experience, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay (including the timing of future payments), the estimated value of the underlying collateral, composition of the loan portfolio, current economic conditions and other relevant factors. Trends in market vacancy and rental rates are incorporated into the analysis that we perform for monitored loans and may contribute to the establishment of (or an increase or decrease in) an allowance for credit losses. In addition, we review each loan individually in our commercial mortgage loan portfolio on an annual basis to identify emerging risks. We focus on properties that experienced a reduction in debt-service coverage or that have significant exposure to tenants with deteriorating credit profiles. Where warranted, we establish or increase loss reserves for a specific loan based upon this analysis. Our process for determining past due or delinquency status begins when a payment date is missed, at which time the borrower is contacted. After the grace period expiration that may last up to 10 days, we send a default notice. The default notice generally provides a short time period to cure the default. Our policy is to report loans that are 60 or more days past due, which equates to two or more payments missed, as delinquent. We do not accrue interest on loans 90 days past due, and any interest received on these loans is either applied to the principal or recorded in net investment income on our Consolidated Statements of Comprehensive Income (Loss) when received, depending on the assessment of the collectability of the loan. We resume accruing interest once a loan complies with all of its original terms or restructured terms. Mortgage loans deemed un collectable are charged against the allowance for losses, and subsequent recoveries, if any, are credited to the allowance for losses. All mortgage loans that are impaired have an established allowance for credit losses. Changes in valuation allowances are reported in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). We measure and assess the credit quality of our mortgage loans by using loan-to-value and debt-service coverage ratios. The loan-to-value ratio compares the principal amount of the loan to the fair value at origination of the underlying property collateralizing the loan and is commonly expressed as a percentage. Loan-to-value ratios greater than 100% indicate that the principal amount is greater than the collateral value. Therefore, all else being equal, a lower loan-to-value ratio generally indicates a higher quality loan. The debt-service coverage ratio compares a property’s net operating income to its debt-service payments. Debt-service coverage ratios of less than 1.0 indicate that property operations do not generate enough income to cover its current debt payments. Therefore, all else being equal, a higher debt-service coverage ratio generally indicates a higher quality loan. Policy Loans Policy loans represent loans we issue to contract holders that use the cash surrender value of their life insurance policy as collateral. Policy loans are carried at unpaid principal balances. Real Estate Real estate includes both real estate held for the production of income and real estate held-for-sale. Real estate held for the production of income is carried at cost less accumulated depreciation. Depreciation is calculated on a straight-line basis over the estimated useful life of the asset. We periodically review properties held for the production of income for impairment. Properties whose carrying values are greater than their projected undiscounted cash flows are written down to estimated fair value, with impairment losses reported in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). The estimated fair value of real estate is generally computed using the present value of expected future cash flows from the real estate discounted at a rate commensurate with the underlying risks. Real estate classified as held-for-sale is stated at the lower of depreciated cost or fair value less expected disposition costs at the time classified as held-for-sale. Real estate is not depreciated while it is classified as held-for-sale. Also, valuation allowances for losses are established, as appropriate, for real estate held-for-sale and any changes to the valuation allowances are reported in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). Real estate acquired through foreclosure proceedings is recorded at fair value at the settlement date. Derivative Instruments We hedge certain portions of our exposure to interest rate risk, foreign currency exchange risk, equity market risk and credit risk by enteri |
New Accounting Standards
New Accounting Standards | 12 Months Ended |
Dec. 31, 2015 | |
New Accounting Standards [Abstract] | |
New Accounting Standards | 2. New Accounting Standards Adoption of New Accounting Standards The following table provides a description of our adoption of new Accounting Standard Updates (“ASU s”) issued by the FASB and the impact of the adoption on our financial statements: Standard Description Date of Adoption Effect on Financial Statements or Other Significant Matters ASU 2014-01, Accounting for Investments in Qualified Affordable Housing Projects This standard permits an entity to make an accounting policy to use the proportional amortization method of accounting to recognize investments in qualified affordable housing projects, if certain conditions are met. Under the proportional amortization method, an entity amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits received and recognizes the net investment performance in the income statement as a component of income tax expense (benefit). Entities that previously applied the effective yield method to investments in qualified affordable housing prior to the adoption of this standard may continue to apply the effective yield method to those pre-existing investments. January 1, 2015 The adoption of this ASU did not have an effect on our consolidated financial condition and results of operations. ASU 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity This standard changes the requirements for reporting discontinued operations. The disposal of a component of an entity must be reported as a discontinued operation if the disposal represents a strategic shift that has a major effect on an entity’s operations and financial results. The amendments also require entities to provide new disclosures about a disposal of an individually significant component of an entity that does not qualify for discontinued operations presentation. Early adoption is permitted, but only for disposals that have not been reported in financial statements previously issued or available for issuance. Early adopted as of October 1, 2014 We applied the guidance in this standard to our sale of Lincoln Financial Media (“LFM”) in the fourth quarter of 2014. For more information regarding our sale of LFM see Note 3. ASU 2014-11, Repurchase-to-Maturity Transactions, Repurchase Financings and Disclosures This standard eliminates a distinction in current GAAP related to certain repurchase agreements, and amends current GAAP to require repurchase-to-maturity transactions and linked repurchase financings to be accounted for as secured borrowings; consistent with the accounting for other repurchase agreements. The standard also includes new disclosure requirements related to transfers accounted for as sales that are economically similar to repurchase agreements and information about the types of collateral pledged in repurchase agreements and similar transactions accounted for as secured borrowings. The new disclosures are not required for comparative periods before the effective date. January 1, 2015, except for disclosures related to collateral pledged that were adopted for the interim period ended June 30, 2015 The adoption of this ASU did not have an effect on our consolidated financial condition and results of operations. Future Adoption of New Accounting Standards The following table provides a description of future adoptions of new accounting standards that may have an impact on our financial statements when adopted: Standard Description Projected Date of Adoption Effect on Financial Statements or Other Significant Matters ASU 2014-09, Revenue from Contracts with Customers & ASU 2015- 14, Revenue from Contracts with Customers; Deferral of the Effective Date This standard establishes the core principle of recognizing revenue to depict the transfer of promised goods and services. The amendments define a five-step process that systematically identifies the various components of the revenue recognition process, culminating with the recognition of revenue upon satisfaction of an entity’s performance obligation. Retrospective application is required. After performing extensive outreach, the FASB decided to delay the effective date of ASU 2014-09 for one year. Early application is permitted but only for annual reporting periods beginning after December 15, 2016. January 1, 2018 We will adopt the accounting guidance in this standard for non-insurance related products and services, and are currently evaluating the impact of adoption on our consolidated financial condition and results of operations. ASU 2014-16, Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share is More Akin to Debt or to Equity This standard clarifies that when considering the nature of the host contract in a hybrid financial instrument issued in the form of a share; an entity must consider all of the stated and implied substantive terms of the hybrid instrument, including the embedded derivative feature that is being considered for separate accounting from the host contract. Early adoption of this standard is permitted, and application is under a modified retrospective basis to existing hybrid financial instruments that are within the scope of the standard. January 1, 2016 This amendment is not expected to have a material effect on our consolidated financial condition and results of operations. ASU 2015-02, Amendments to the Consolidation Analysis This standard is intended to improve consolidation accounting guidance related to limited partnerships, limited liability corporations and securitization structures. The new standard includes changes to existing consolidation models that will eliminate the presumption that a general partner should consolidate a limited partnership, clarify when fees paid to a decision maker should be a factor in the VIEs consolidation evaluation and reduce the VIEs consolidation models from two to one by eliminating the indefinite deferral for certain investment funds. Early adoption is permitted, including adoption in an interim period. January 1, 2016 This amendment is not expected to have a material effect on our consolidated financial condition and results of operations. ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs Under current accounting guidance, debt issuance costs are recognized as a deferred charge in the balance sheet. This amendment requires that debt issuance costs be presented in the balance sheet as a direct deduction from the carrying amount of that debt. This standard does not change the recognition and measurement requirements related to debt issuance costs. Early adoption of this standard is permitted, and retrospective application is required for all periods presented in the financial statements. January 1, 2016 We will reclassify all of our debt issuance costs in accordance with this ASU. The amendment is not expected to have a material effect on our consolidated financial condition and results of operations. ASU 2015-05, Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement This standard clarifies the accounting requirements for recognizing cloud computing arrangements. If an entity purchases a software license through a cloud computing arrangement, the software license should be accounted for in a manner consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the arrangement should be accounted for as a service contract. Early adoption of this standard is permitted, and the amendments can be adopted either prospectively or retrospectively. January 1, 2016 We will adopt this ASU prospectively. The amendment is not expected to have a material effect on our consolidated financial condition and results of operations. Standard Description Projected Date of Adoption Effect on Financial Statements or Other Significant Matters ASU 2015-07, Disclosures for Certain Investments That Calculate Net Asset Value per Share (or its Equivalent) This standard removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient. In addition, the standard also removes the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the net asset value per share practical expedient, and limits those disclosures only to those investments for which the practical expedient has been elected. Early adoption is permitted, and the disclosures must be provided retrospectively for all periods presented in the financial statements. January 1, 2016 We will appropriately amend our financial statement disclosures in accordance with this standard as of the adoption date. ASU 2015-09, Disclosures about Short-Duration Contracts This standard enhances the disclosure requirements related to short-duration insurance contracts. The new disclosure requirements focus on providing users of financial statements with more transparent information about an insurance entity’s (1) initial claims estimates and subsequent adjustments to those estimates, (2) methodologies and judgments in estimating claims, and (3) timing, frequency and severity of claims. Early application of this standard is permitted, and retrospective application is required for each comparative period presented, except for those requirements that apply only to the current period. Annual periods beginning January 1, 2016; interim periods within annual periods beginning January 1, 2017 We are currently evaluating these disclosure changes and will provide the additional disclosures upon adoption. ASU 2015-15, Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements Given the absence of authoritative accounting guidance in ASU 2015-03 related to debt issuance costs for line-of-credit arrangements, this standard clarifies that the Securities and Exchange Commission ("SEC") Staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement. January 1, 2016 We will include any necessary disclosures in connection with our adoption of ASU 2015-03. ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities These amendments require, among other things, the fair value measurement of investments in equity securities and certain other ownership interests that do not result in consolidation and are not accounted for under the equity method of accounting. The change in fair value of the impacted investments in equity securities must be recognized in net income. In addition, the amendments include certain enhancements to the presentation and disclosure requirements for financial assets and financial liabilities. Early adoption of the ASU is generally not permitted, except as defined in the ASU. The amendments should be adopted in the financial statements through a cumulative-effect adjustment to the beginning balance of retained earnings. January 1, 2018 We are currently evaluating the impact of adopting this ASU on our consolidated financial condition and results of operations. |
Dispositions
Dispositions | 12 Months Ended |
Dec. 31, 2015 | |
Dispositions [Abstract] | |
Dispositions | 3 . Dispositions LFM On July 16, 2015, we closed on the sale of LFM to Entercom Communications Corp. (“Entercom Parent”) and Entercom Radio, LLC. We received $ 75 million in cash, net of transaction expenses, and $ 28 million face amount of perpetual cumulative convertible preferred stock of Entercom Parent . As of December 31, 2014, we adjusted the carrying amount of the asse ts and liabilities of LFM that were to be sold to fair value less cost to sell and re classified such amounts as held-for- sale within other assets and other liabilities on our Consolidated Balance Sheets. Accordingly, we recognized a loss of $ 28 million, after-tax, during the fourth quarter of 2014 reflected within income (loss) from continuing operations on our Consolidated Statements of Comprehensive Income (Loss). During 2015, we recognized an additional loss of $ 2 million, after -tax, related to finalizing the transaction. |
Variable Interest Entities ("VI
Variable Interest Entities ("VIE's") | 12 Months Ended |
Dec. 31, 2015 | |
Variable Interest Entities [Abstract] | |
Variable Interest Entities ("VIE's") | 4. Variable Interest Entities Consolidated VIEs Credit-Linked Notes We have invested in the Class 1 notes of two credit-linked note (“ CLN ”) structures, which represent special purpose trusts combining ABS with credit default swaps to produce multi-class structured securities. The CLN structures also include subordinated Class 2 notes, which are held by third parties, and, together with the Class 1 notes, represent 100% of the outstanding notes of the CLN structures. The entities that issued the CLNs are financed by the note holders, and, as such, the note holders participate in the expected losses and residual returns of the entities. Because the note holders do not have voting rights or similar rights, we determined the entities issuing the CLNs are VIEs, and as a note holder, our interest represented a variable interest. We have the power to direct the most significant activity affecting the performance of both CLN structures, as we have the ability to actively manage the reference portfolio s underlying the credit default swaps. In addition, we receive returns from the CLN structures and may absorb losses that could potentially be significant to the CLN structures. As such, we concluded that we are the primary beneficiary of the VIEs associated with the CLNs. We reflect the assets and liabilities on our Consolidated Balance Sheets and recognize the results of operations of these VIEs on our Consolidated Statements of Comprehensive Income (Loss). As a result of consolidating the CLNs, we also consolidate the derivative instruments in the CLN structures. The credit default swaps create variability in the CLN structures and expose the note holders to the credit risk of the referenced portfolio. The contingent forward contracts transfer a portion of the loss in the underlying fixed maturity corporate asset-backed credit card loan securities back to the counterparty after credit losses reach our attachment point. The following summarizes information regarding the CLN structures (dollars in millions) as of December 31, 201 5 : Amount and Date of Issuance $400 $200 December April 2006 2007 Original attachment point (subordination) 5.50% 2.05% Current attachment point (subordination) 4.21% 1.48% Maturity 12/20/2016 3/20/2017 Current rating of tranche BBB+ BB Current rating of underlying reference obligations AA - B AAA - CCC Number of defaults in underlying reference obligations 3 2 Number of entities 123 99 Number of countries 20 21 There has been no event of default on the CLNs themselves. Based upon our analysis, the remaining subordination as represented by the attachment point should be sufficient to absorb future credit losses, subject to changing market con ditions. Similar to other debt instruments, our maximum principal loss is limited to our original investment. The following summarizes the exposure of the CLN s tructures’ underlying reference portfolios by industry and rating as of December 31, 201 5 : AAA AA A BBB BB B CCC Total Industry Financial intermediaries 0.0% 2.1% 5.4% 3.0% 0.0% 0.0% 0.0% 10.5% Telecommunications 0.0% 0.0% 2.4% 7.2% 0.9% 0.5% 0.0% 11.0% Oil and gas 0.3% 2.1% 1.0% 3.4% 1.2% 0.0% 0.0% 8.0% Utilities 0.0% 0.0% 1.6% 3.0% 0.0% 0.0% 0.0% 4.6% Chemicals and plastics 0.0% 0.0% 2.3% 1.2% 0.3% 0.0% 0.0% 3.8% Drugs 0.3% 1.6% 1.8% 0.0% 0.0% 0.0% 0.0% 3.7% Retailers (except food and drug) 0.0% 0.0% 2.1% 0.9% 0.5% 0.0% 0.0% 3.5% Industrial equipment 0.0% 0.0% 2.1% 0.7% 0.0% 0.0% 0.0% 2.8% Sovereign 0.0% 1.2% 1.0% 0.7% 0.3% 0.0% 0.0% 3.2% Conglomerates 0.0% 2.3% 0.9% 0.0% 0.0% 0.0% 0.0% 3.2% Forest products 0.0% 0.0% 0.5% 1.1% 1.4% 0.0% 0.0% 3.0% Other 0.0% 4.1% 13.8% 18.2% 5.6% 0.7% 0.3% 42.7% Total 0.6% 13.4% 34.9% 39.4% 10.2% 1.2% 0.3% 100.0% Statutory Trust Note In August 2011, we purchased a $ 100 million note issued by a statutory trust (“Issuer”) in a private placement offering. The procee ds were used by the Issuer to purchase U.S. government bonds to be held as collateral assets suppor ting an excess mortality swap. We conclud ed that the Issuer of the note wa s a VIE and that we were the primary beneficiary. We consolidate d all of the assets and liabilities of the Issuer on our Consolidated Balance Sheets as of August 1, 2011. On December 16, 2013, the excess mortality swap underlying this VIE was terminated as a result of a cancellation event under the associated swap agreement. Subsequently, the U.S. government bonds were redeemed on January 6, 2014 , and our $100 million note issued by the statutory trust was cancelled . The combination of these two events, under the direction of LNC and its counterparty, has provided for the dissolution of this V IE effective January 6, 2014. As such, we no longer have any exposure to loss related to this VIE. Reinsurance Related Notes In July 2013, we formed a new limited liability company, Lincoln Financial Limited Liability Company I (“LFLLCI”), and we became the sole equity owner of LFLLCI through our capital contribution. The activities of LFLLCI relate solely to our captive reinsurance subsidiary, the Lincoln Reinsurance Company of Vermont V (“LRCVV”), and primarily are to acquire, hold and issue notes with LRCVV as well as pay and collect interest on the notes. LFLLCI holds a surplus note issued by LRCVV that had an outstanding principal balance of $479 million as of December 31, 2015. LFLLCI issued a long-term note to LRCVV that has a principal balance that moves concurrently with any variability in the face amount of the surplus note LFLLCI received from LRCVV. We concluded that LFLLCI is a VIE and that LNC is the primary beneficiary as we have the power to direct the most significant activities affecting the performance of LFLLCI. Asset and liability information (dollars in millions) for the consolidated VIEs included on our Consolidated Balance Sheets was as follows: As of December 31, 2015 As of December 31, 2014 Number Number of Notional Carrying of Notional Carrying Instruments Amounts Value Instruments Amounts Value Assets Fixed maturity securities: Asset-backed credit card loans N/A $ - $ 598 N/A $ - $ 598 Total return swap 1 479 - 1 423 - Total assets (1) 1 $ 479 $ 598 1 $ 423 $ 598 Liabilities Non-qualifying hedges: Credit default swaps 2 $ 600 $ 4 2 $ 600 $ 13 Contingent forwards 2 - - 2 - - Total liabilities (2) 4 $ 600 $ 4 4 $ 600 $ 13 (1) Reported in variable interest entities’ fixed maturity securities on our Consolidated Balance Sheets. (2) Reported in variable interest entities’ liabilities on our Consolidated Balance Sheets. For details related to the fixed maturity AFS securities for these VIEs, see Note 5 . As described more fully in Note 1, we regularly review our investment holdings for OTTI. Based upon this review, we believe that the AFS fixed maturity securities were not other-than-temporarily impaired as of December 31, 201 5 . The gains (losses) for the consolidated VIEs (in millions) recorded on our Consolidated Statements of Comprehensive Income (Loss) were as follows: For the Years Ended December 31, 2015 2014 Non-Qualifying Hedges Credit default swaps $ 9 $ 14 Contingent forwards - - Total non-qualifying hedges (1) $ 9 $ 14 (1) Reported in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss ). Unconsolidated VIEs Reinsurance Related Notes Effective December 31, 2010, we issued a $500 million long-term senior note in exchange for a corporate bond AFS security of like principal and duration from a non-affiliated VIE whose primary activities are to acquire, hold and issue notes and loans, as well as pay and collect interest on the notes and loans. We have concluded that we are not the primary beneficiary of this VIE because we do not have power over the activities that most significantly affect its economic performance. In addition, the terms of the senior note provide us with a set-off right to the corporate bond AFS security we purchased from the VIE; therefore, neither appears on our Consolidated Balance Sheets. We assigned the corporate bond AFS security to one of our subsidiaries and issued a guarantee to our subsidiary for the timely payment of the corporate bond’s principal. Effective September 30, 2014, we terminated our $500 million long-term senior note financing arrangement and entered into a new transaction with the same non-affiliated VIE whose primary activities are to acquire, hold and issue notes and loans, pay and collect interest on the notes and loans, and enter into derivative instruments. Under this new transaction, we issued a long-term senior note to the non-affiliated VIE in exchange for a corporate bond AFS security of like principal and duration that was assigned to one of our subsidiaries. The outstanding principal balance of this long-term senior note was $767 million as of December 31, 2015, and it is variable in nature; moving concurrently with any variability in the face amount of the corporate bond AFS security up to a maximum amount of $1.1 billion. We have concluded that we are not the primary beneficiary of the non-affiliated VIE because we do not have power over the activities that most significantly affect its economic performance. In addition, the terms of the senior note provide us with a set-off right with the corporate bond AFS security we purchased from the VIE; therefore, neither appears on our Consolidated Balance Sheets. The VIE has entered into a total return swap with an unaffiliated third-party that supports any necessary principal funding of the corporate bond AFS security required by our subsidiaries while the security is outstanding. Effective October 1, 2015, our captive reinsurance subsidiary, the Lincoln Reinsurance Company of Vermont VI, issued a long-term surplus note for $275 million to a non-affiliated VIE in exchange for two corporate bond AFS securities of like prin cipal and duration. The activities of the VIE primarily are to acquire, hold and issue notes and loans and to pay and collect interest on the notes and loans. The outstanding principal balance of the long-term surplus note was $336 million as of December 31, 2015, and is variable in nature; moving concurrently with any variability in the face amount of the corporate bond AFS securities. We have concluded that we are not the primary beneficiary of the non-affiliated VIE because we do not have power over the activities that most significantly affect its economic performance. In addition, the terms of the long-term surplus note provide us with a set-off right with the corporate bond AFS securities we purchased from the VIE; therefore, neither appears on our Consolidated Balance Sheets. Structured Securities Through our investment activities, we make passive investments in structured securities issued by VIEs for which we are not the manager. These structured securitie s include our RMBS, CMBS, CLO s and CDOs . We have not provided financial or other support with respect to these VIEs other than our original investment. We have determined that we are not the primary beneficiary of these VIEs due to the relative size of our investment in comparison to the principal amount of the structured securities issued by the VIEs and the level of credit subordination that reduces our obligation to absorb losses or right to receive benefits. Our maximum exposure to loss on these structured securities is limited to the amortized cost for these investments. We recognize our variable interest in these VIEs at fair value on our Consolidated Balance Sheets. For information about these structured securities, see Note 5. Qualified Affordable Housing Projects We invest in certain LPs that operate qualified affordable housing projects that we have concluded are VIEs. We are not the primary beneficiary of these VIEs as we do not have the power to direct the most significant activities of the LPs. We receive returns from the LPs in the form of income tax credits and other tax benefits, which are recognized in federal income tax expense (benefit) on our Consolidated Statements of Comprehensive Income (Loss) and were less than $1 million for the years ended December 31, 2015 and 2014. The carrying amounts of our investments in qualified affordable housing projects are recognized in other investments on our Consolidated Balance Sheets and were $47 million and $60 million as of December 31, 2015 and 2014, respectively. Our exposure to loss is limited to the capital we invest in the LPs, and we do not have any contingent commitments to provide additional capital funding to these LPs. There have been no indicators of impairment that would require us to recognize an impairment loss related to these LPs due to forfeiture, ineligibility of tax credits or for any other circumstances as of December 31, 2015. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2015 | |
Investments [Abstract] | |
Investments | 5 . Investments AFS Securities Pursuant to the Fair Value Measurements and Disclosures Topic of the FASB ASC, we have categorized AFS securities into a three-level hierarchy, based on the priority of the inputs to the respective valuation technique. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3), as described in Note 1, which also includes additional disclosures regarding our fair value measurements. The amortized cost, gross unrealized gains, losses and OTTI and fair value of AFS securities (in millions) were as follows: As of December 31, 2015 Amortized Gross Unrealized Fair Cost Gains Losses OTTI (1) Value Fixed maturity securities: Corporate bonds $ 70,993 $ 3,924 $ 1,984 $ 2 $ 72,931 ABS 1,064 41 17 (13 ) 1,101 U.S. government bonds 386 45 2 - 429 Foreign government bonds 464 61 1 - 524 RMBS 3,566 186 36 (12 ) 3,728 CMBS 364 10 2 (4 ) 376 CLOs 588 1 3 (3 ) 589 State and municipal bonds 3,806 686 12 - 4,480 Hybrid and redeemable preferred securities 762 88 44 - 806 VIEs’ fixed maturity securities 596 2 - - 598 Total fixed maturity securities 82,589 5,044 2,101 (30 ) 85,562 Equity securities 226 17 6 - 237 Total AFS securities $ 82,815 $ 5,061 $ 2,107 $ (30 ) $ 85,799 As of December 31, 2014 Amortized Gross Unrealized Fair Cost Gains Losses OTTI (1) Value Fixed maturity securities: Corporate bonds $ 67,153 $ 6,711 $ 443 $ 5 $ 73,416 ABS 1,087 56 20 (7 ) 1,130 U.S. government bonds 379 56 - - 435 Foreign government bonds 473 68 - - 541 RMBS 3,979 242 14 (19 ) 4,226 CMBS 554 23 1 6 570 CLOs 375 - 2 (2 ) 375 State and municipal bonds 3,723 874 4 - 4,593 Hybrid and redeemable preferred securities 886 108 40 - 954 VIEs’ fixed maturity securities 587 11 - - 598 Total fixed maturity securities 79,196 8,149 524 (17 ) 86,838 Equity securities 216 15 - - 231 Total AFS securities $ 79,412 $ 8,164 $ 524 $ (17 ) $ 87,069 (1) Includes unrealized gains and losses on impaired securities related to changes in the fair value of such securities subsequent to the impairment measurement date. Certain amounts reported in prior years’ consolidated financial statements have been reclassified to conform to the presentation adopted in the current year. Specifically, we reclassified amounts related to subsequent changes in the fair value of AFS securities for which noncredit OTTI was previously recognized in OCI. Historically, these amounts were recognized through unrealized gain (loss) on AFS securities in the Consolidated Statements of Comprehensive Income (Loss). To better reflect the economic position of our AFS fixed maturity securities, these amounts are now recognized through unrealized OTTI of AFS securities in the Consolidated Statements of Comprehensive Income (Loss). These reclassifications had no effect on net income (loss) or stockholders’ equity for the prior years. The amortized cost and fair value of fixed maturity AFS securities by contractual maturities (in millions) as of December 31, 2015 , were as follows: Amortized Fair Cost Value Due in one year or less $ 2,602 $ 2,637 Due after one year through five years 18,144 18,972 Due after five years through ten years 20,211 20,152 Due after ten years 35,454 37,409 Subtotal 76,411 79,170 Structured securities (ABS, MBS, CLOs) 6,178 6,392 Total fixed maturity AFS securities $ 82,589 $ 85,562 Actual maturities may differ from contractual maturities because issuers may have the right to call or pre-pay obligations. The fair value and gross unrealized losses, including the portion of OTTI recognized in OCI, of AFS securities (dollars in millions), aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, were as follows: As of December 31, 2015 Less Than or Equal Greater Than to Twelve Months Twelve Months Total Gross Gross Gross Unrealized Unrealized Unrealized Fair Losses and Fair Losses and Fair Losses and Value OTTI Value OTTI Value OTTI Fixed maturity securities: Corporate bonds $ 20,380 $ 1,364 $ 2,383 $ 623 $ 22,763 $ 1,987 ABS 213 4 274 29 487 33 U.S. government bonds 15 2 - - 15 2 Foreign government bonds 37 1 - - 37 1 RMBS 627 21 371 22 998 43 CMBS 116 2 11 2 127 4 CLOs 271 2 49 1 320 3 State and municipal bonds 129 8 27 4 156 12 Hybrid and redeemable preferred securities 38 1 148 43 186 44 Total fixed maturity securities 21,826 1,405 3,263 724 25,089 2,129 Equity securities 47 6 - - 47 6 Total AFS securities $ 21,873 $ 1,411 $ 3,263 $ 724 $ 25,136 $ 2,135 Total number of AFS securities in an unrealized loss position 2,007 As of December 31, 2014 Less Than or Equal Greater Than to Twelve Months Twelve Months Total Gross Gross Gross Unrealized Unrealized Unrealized Fair Losses and Fair Losses and Fair Losses and Value OTTI Value OTTI Value OTTI Fixed maturity securities: Corporate bonds $ 4,799 $ 207 $ 4,465 $ 244 $ 9,264 $ 451 ABS 91 2 323 41 414 43 RMBS 447 7 241 14 688 21 CMBS 121 1 19 10 140 11 CLOs 110 1 70 1 180 2 State and municipal bonds 6 - 26 4 32 4 Hybrid and redeemable preferred securities 31 - 176 40 207 40 Total fixed maturity securities 5,605 218 5,320 354 10,925 572 Equity securities 37 1 - - 37 1 Total AFS securities $ 5,642 $ 219 $ 5,320 $ 354 $ 10,962 $ 573 Total number of AFS securities in an unrealized loss position 1,019 For information regarding our investments in VIEs, see Note 4 . The fair value, gross unrealized losses, the portion of OTTI recognized in OCI (in millions) and number of AFS securities where the fair value had declined and remained below amortized cost by greater than 20% were as follows: As of December 31, 2015 Number Fair Gross Unrealized of Value Losses OTTI Securities (1) Less than six months $ 1,584 $ 701 $ 2 138 Six months or greater, but less than nine months 76 85 - 19 Nine months or greater, but less than twelve months 39 38 - 2 Twelve months or greater 153 83 15 60 Total $ 1,852 $ 907 $ 17 219 As of December 31, 2014 Number Fair Gross Unrealized of Value Losses OTTI Securities (1) Less than six months $ 48 $ 19 $ - 12 Six months or greater, but less than nine months 8 7 - 3 Twelve months or greater 242 97 33 82 Total $ 298 $ 123 $ 33 97 (1) We may reflect a security in more than one aging category based on various purchase dates. We regularly review our investment holdings for OTTI. Our gross unrealized losses, including the portion of OTTI recogni zed in OCI, on AFS securities increased $ 1.6 b illion for the year ended December 31, 2015 . As discussed further below, we believe the unrealized loss position as of December 31, 2015 , did not represent OTTI as (i) we did not intend to sell these fixed maturity AFS securities; (ii) it is not more likely than not that we will be required to sell the fixed maturity AFS securities before recovery of their amortized cost basis; (iii) the estimated future cash flows were equal to or greater than the amortized cost basis of the debt securities; and (iv) we had the ability and intent to hold the equity AFS securities for a period of time sufficient for recovery. Based upon this evaluation as of December 31, 2015 , management believes we have the ability to generate adequate amounts of cash from our normal operations (e.g., insurance premiums and fees and investment income) to meet cash requirements with a prudent margin of safety without requiring the sale of our temporarily-impaired securities. As of December 31, 2015 , the unrealized losses associated with our corporate bond securities were attributable primarily to widening credit spreads and rising interest rates since purchase. We performed a detailed analysis of the financial performance of the underlying issuers and determined that we expected to recover the entire amortized cost for each security. As of December 31, 2015 , the unrealized losse s associated with our MBS and ABS were attributable primarily to collateral losses and credit spreads. We assessed for credit impairment using a cash flow model that incorporates key assumptions including default rates, severities and prepayment rates. We estimated losses for a security by forecasting the underlying loans in each transaction. The forecasted loan performance was used to project cash flows to the various tranches in the structure, as applicable. Our forecasted cash flows also considered, as applicable, independent industry analyst reports and forecasts, sector credit ratings and other independent market data. Based upon our assessment of the expected credit losses of the security given the performance of the underlying collateral compared to our subordination or other credit enhancement, we expected to recover the entire amortized cost basis of each temporarily - impaired security. As of December 31, 2015 , the unrealized losses associated with our hybrid and redeemable preferred securities were attributable primarily to wider credit spreads caused by illiquidity in the market and subordination within the capital structure, as well as credit risk of underlying issuers. For our hybrid and redeemable preferred securities, we evaluated the financial performance of the underlying issuer s based upon credit performance and investment ratings and determined that we expected to recover the entire amortized cost of each security. Changes in the amount of credit loss of OTTI recognized in net income (loss) where the portion related to other factors was recognized in OCI (in millions) on fixed maturity AFS securities were as follows: For the Years Ended December 31, 2015 2014 2013 Balance as of beginning-of-year $ 380 $ 404 $ 424 Increases attributable to: Credit losses on securities for which an OTTI was not previously recognized 19 4 39 Credit losses on securities for which an OTTI was previously recognized 16 16 43 Decreases attributable to: Securities sold, paid down or matured (33 ) (44 ) (102 ) Balance as of end-of-year $ 382 $ 380 $ 404 During 2015 , 2014 and 2013 , we recorded credit losses on securities for which an OTTI was not previously recognized as we determined the cash flows expected to be collected would not be sufficient to recover the entire amortized cost basis of the debt security. The credit losses we recorded on securities for which an OTTI was not previously recognized were attributable primarily to one or a combination of the following reasons: · Failure of the issuer of the security to make scheduled payments; · Deterioration of creditworthiness of the issuer; · Deterioration of conditions specifically related to the security; · Deterioration of fundamentals of the industry in which the issuer operates; and · Deterioration of the rating of the security by a rating agency. We recognize the OTTI attributed to the noncredit portion as a separate component in OCI referred to as unrealized OTTI on AFS securities. Details of the amount of credit loss of OTTI recognized in net income (loss) for which a portion related to other factors was recognized in OCI (in millions), were as follows: As of December 31, 2015 Net Unrealized OTTI in Amortized Gain/(Loss) Fair Credit Cost Position Value Losses Corporate bonds $ 31 $ (2 ) $ 29 $ 28 ABS 199 13 212 108 RMBS 365 12 377 193 CMBS 34 4 38 48 CLOs 11 3 14 5 Total $ 640 $ 30 $ 670 $ 382 As of December 31, 2014 Net Unrealized OTTI in Amortized Gain/(Loss) Fair Credit Cost Position Value Losses Corporate bonds $ 38 $ (5 ) $ 33 $ 20 ABS 221 7 228 103 RMBS 447 19 466 190 CMBS 46 (6 ) 40 62 CLOs 11 2 13 5 Total $ 763 $ 17 $ 780 $ 380 Trading Securities Trading securities at fair value (in millions) consisted of the following: As of December 31, 2015 2014 Fixed maturity securities: Corporate bonds $ 1,416 $ 1,528 ABS 25 32 U.S. government bonds 221 278 Foreign government bonds 25 25 RMBS 104 135 CMBS 4 4 CLOs 10 9 State and municipal bonds 18 22 Hybrid and redeemable preferred securities 31 32 Total trading securities $ 1,854 $ 2,065 The portion of the market adjustment for gains (losses) that relate to trading securities still held as of December 31, 2015 , 2014 and 2013 , was $(100) million, $45 million and $ (172) million, respectively. Mortgage Loans on Real Estate Mortgage loans on real estate principally involve commercial real estate. The commercial loans are geographically diversified throughout the U.S. with the largest concentrations in California , which accounted for 21% and 23% , respectively, and Texas , which accounted for 10% and 9% , respectively, of mortgage loans on real estate as of December 31, 2015 and 2014 . The following provides the current and past due composition of our mortgage loans on real estate (in millions): As of December 31, 2015 2014 Current $ 8,677 $ 7,565 60 to 90 days past due - - Greater than 90 days past due - 8 Valuation allowance associated with impaired mortgage loans on real estate (2 ) (3 ) Unamortized premium (discount) 3 4 Total carrying value $ 8,678 $ 7,574 The number of impaired mortgage loans on real estate, each of which had an associated specific valuation allowance, and the carrying value of impaired mortgage loans on real estate (dollars in millions) were as follows: As of December 31, 2015 2014 Number of impaired mortgage loans on real estate 2 3 Principal balance of impaired mortgage loans on real estate $ 8 $ 26 Valuation allowance associated with impaired mortgage loans on real estate (2 ) (3 ) Carrying value of impaired mortgage loans on real estate $ 6 $ 23 The changes in the valuation allowance associated with impaired mortgage loans on real estate (in millions) were as follows: As of December 31, 2015 2014 2013 Balance as of beginning-of-year $ 3 $ 3 $ 21 Additions - - 3 Charge-offs, net of recoveries (1 ) - (21 ) Balance as of end-of-year $ 2 $ 3 $ 3 The average carrying value on the impaired mortgage loans on real estate (in millions) was as follows: For the Years Ended December 31, 2015 2014 2013 Average carrying value for impaired mortgage loans on real estate $ 17 $ 24 $ 34 Interest income recognized on impaired mortgage loans on real estate 1 2 2 Interest income collected on impaired mortgage loans on real estate 1 2 2 As described in Note 1, we use the loan-to-value and debt-service coverage ratios as credit quality indicators for our mortgage loans, which were as follows (dollars in millions): As of December 31, 2015 As of December 31, 2014 Debt- Debt- Service Service Carrying % of Coverage Carrying % of Coverage Loan-to-Value Ratio Value Total Ratio Value Total Ratio Less than 65% $ 7,718 88.9% 2.06 $ 6,596 87.1% 1.90 65% to 74% 653 7.5% 1.60 631 8.3% 1.55 75% to 100% 301 3.5% 0.83 316 4.2% 0.77 Greater than 100% 6 0.1% 1.05 31 0.4% 0.77 Total mortgage loans on real estate $ 8,678 100.0% $ 7,574 100.0% Alternative Investments As of December 31, 2015 and 2014 , alternative investments included investments in 190 and 156 different partnerships, respectively, and the port folio represented approximately 1 % of our overall invested assets. Net Investment Income The major categories of net investment income (in millions) on our Consolidated Statements of Comprehensive Income (Loss) were as follows: For the Years Ended December 31, 2015 2014 2013 Fixed maturity AFS securities $ 4,079 $ 4,041 $ 3,976 Equity AFS securities 9 9 6 Trading securities 107 125 137 Mortgage loans on real estate 395 378 388 Real estate 4 7 13 Policy loans 152 155 155 Invested cash 3 2 3 Commercial mortgage loan prepayment and bond make-whole premiums 105 138 117 Alternative investments 88 130 86 Consent fees 5 2 4 Other investments 5 (11 ) (9 ) Investment income 4,952 4,976 4,876 Investment expense (125 ) (117 ) (122 ) Net investment income $ 4,827 $ 4,859 $ 4,754 Realized Gain (Loss) Related to Certain Investments The detail of the realized gain (loss) related to certain investments (in millions) was as follows: For The Years Ended December 31, 2015 2014 2013 Fixed maturity AFS securities: (1) Gross gains $ 43 $ 29 $ 21 Gross losses (99 ) (23 ) (94 ) Equity AFS securities: Gross gains 3 5 8 Gross losses - - (2 ) Gain (loss) on other investments (9 ) 3 (3 ) Associated amortization of DAC, VOBA, DSI and DFEL and changes in other contract holder funds (26 ) (32 ) (28 ) Total realized gain (loss) related to certain investments, pre-tax $ (88 ) $ (18 ) $ (98 ) (1) These amounts are represented net of related fair value hedging activity. See Note 6 for more information. Details underlying write-downs taken as a result of OTTI (in millions) that were recognized in net income (loss) and included in realized gain (loss) on AFS securities above, and the portion of OTTI recognized in OCI (in millions) were as follows: For the Years Ended December 31, 2015 2014 2013 OTTI Recognized in Net Income (Loss) Fixed maturity securities: Corporate bonds $ (45 ) $ (1 ) $ (16 ) ABS (7 ) (10 ) (20 ) RMBS (7 ) (8 ) (31 ) CMBS (1 ) (1 ) (15 ) Total fixed maturity securities (60 ) (20 ) (82 ) Equity securities - - (1 ) Gross OTTI recognized in net income (loss) (60 ) (20 ) (83 ) Associated amortization of DAC, VOBA, DSI and DFEL 6 4 13 Net OTTI recognized in net income (loss), pre-tax $ (54 ) $ (16 ) $ (70 ) Portion of OTTI Recognized in OCI Gross OTTI recognized in OCI $ 30 $ 12 $ 11 Change in DAC, VOBA, DSI and DFEL (4 ) (2 ) (1 ) Net portion of OTTI recognized in OCI, pre-tax $ 26 $ 10 $ 10 Determination of Credit Losses on Corporate Bonds and ABS As of December 31, 2015 and 2014 , we reviewed our corporate bond and ABS portfolios for potential shortfall in contractual principal and interest based on numerous subjective and objective inputs. The factors used to determine the amount of credit loss for each individual security, include, but are not limited to, near term risk, substantial discrepancy between book and market value, sector or company-specific volatility, negative operating trends and trading levels wider than peers. Credit ratings express opinions about the credit quality of a security. Securities rated investment grade, that is those rated BBB- or higher by Standard & Poor’s (“S&P”) Rating Services or Baa3 or higher by Moody’s Investors Service (“Moody’s”), are generally considered by the rating agencies and market participants to be low credi t risk. As of December 31, 2015 and 2014 , 96 % of the fair value of our corporate bond portfolio was rated investment grade. As of December 31, 2015 and 20 14 , the portion of our corporate bond portfolio rated below investment grade had an amortized cost of $ 3.6 billion and $3.3 billion, respectively, and a fair value of $3.3 billion and $ 3.2 billion, respec tively. As of December 31, 2015 and 2014 , 96 % and 88% , respectively, of the fair value of our ABS portfolio was rated investment grade. As of December 31, 2015 and 2014 , the portion of our ABS portfolio rated below investment grade had an amortized cost of $ 107 million and $ 193 million, respectively, and a fair value of $ 92 million and $176 million, respectively. Based upon the analysis discussed above, we believed as of December 31, 2015 and 2014 , that we would recover the amortized cost of each i nvestment grade corporate bond and ABS security. Determination of Credit Losses on MBS As of December 31, 2015 and 201 4 , default rates were projected by considering underlying MBS loan performance and collateral type. Projected default rates on existing delinquencies vary between 10% to 100% depending on loan type and severity of delinquency status. In addition, we estimate the potential contributions of currently performing loans that may become delinquent in the future based on the change in delinquencies and loan liquidations experienced in the recent history. Finally, we develop a default rate timing curve by aggregating the defaults for all loans in the pool (delinquent loans, foreclosure and real estate owned and new delinquencies from currently performing loans) and the associated loan-level loss severities. We use certain available loan characteristics such as lien status, loan sizes and occupancy to estimate the loss severity of loans. Second lien loans are assigned 100% severity, if defaulted. For first lien loans, we assume a minimum of 30% severity with higher severity assumed for investor properties and further adjusted by housing price assumptions. With the default rate timing curve and loan-level loss severity, we derive the future expected credit losses. Payables for Collateral on Investments The carrying value of the payables for collateral on investments (in millions) included on our Consolidated Balance Sheets and the fair value of the related investments or collateral consisted of the following: As of December 31, 2015 As of December 31, 2014 Carrying Fair Carrying Fair Value Value Value Value Collateral payable for derivative investments (1) $ 1,387 $ 1,387 $ 1,673 $ 1,673 Securities pledged under securities lending agreements (2) 242 231 204 196 Securities pledged under repurchase agreements (3) 673 739 607 666 Investments pledged for Federal Home Loan Bank of Indianapolis (“FHLBI”) (4) 2,355 3,391 1,925 3,151 Total payables for collateral on investments $ 4,657 $ 5,748 $ 4,409 $ 5,686 (1) We obtain collateral based upon contractual provisions with our counterparties. These agreements take into consideration the counterparties’ credit rating as compared to ours, the fair value of the derivative investments and specified thresholds that if exceeded result in the receipt of cash that is typically invested in cash and invested cash. See Note 6 for additional information. (2) Our pledged securities under securities lending agreements are included in fixed maturity AFS securities on our Consolidated Balance Sheets. We generally obtain collateral in an amount equal to 102 % and 105 % of the fair value of the domestic and foreign securities, respectively. We value collateral daily and obtain additional collateral when deemed appropriate. The cash received in our securities lending program is typically invested in cash and invested cash or fixed maturity AFS securities. (3) Our pledged securities under repurchase agreements are included in fixed maturity AFS securities on our Consolidated Balance Sheets. We obtain collateral in an amount equal to 95 % of the fair value of the securities, and our agreements with third parties contain contractual provisions to allow for additional collateral to be obtained when necessary. The cash received in our repurchase program is typically invested in fixed maturity AFS securities. (4) Our pledged investments for FHLBI are included in fixed maturity AFS securities and mortgage loans on real estate on our Consolidated Balance Sheets. The collateral requirements are generally 105 % to 115 % of the fair value for fixed maturity AFS securities and 155 % to 175 % of the fair value for mortgage loans on real estate. The cash received in these transactions is primarily invested in cash and invested cash or fixed maturity AFS securities. Increase (decrease) in payables for collateral on investments (in millions) consisted of the following: For the Years Ended December 31, 2015 2014 2013 Collateral payable for derivative investments $ (286 ) $ 1,035 $ (1,929 ) Securities pledged under securities lending agreements 38 20 (13 ) Securities pledged under repurchase agreements 66 77 250 Securities pledged for Term Asset-Backed Securities Loan Facility - (36 ) (1 ) Investments pledged for FHLBI 430 75 750 Total increase (decrease) in payables for collateral on investments $ 248 $ 1,171 $ (943 ) The remaining contractual maturities of repurchase agreements and securities lending transactions accounted for as secured borrowings were as follows: As of December 31, 2015 Overnight and Continuous Up to 30 Days 30 – 90 Days Greater Than 90 Days Total Repurchase Agreements RMBS $ - $ - $ - $ 250 $ 250 Corporate bonds - - 275 148 423 Total - - 275 398 673 Securities Lending Corporate bonds 242 - - - 242 Foreign government bonds - - - - - Total 242 - - - 242 Total secured borrowings $ 242 $ - $ 275 $ 398 $ 915 Gross amount of recognized liabilities for repurchase agreements and securities lending: $ 914 Amounts related to agreements not included in offsetting disclosures: $ - We accept collateral in the form of securities in connection with repurchase agreements. In instances where we are permitted to sell or re-pledge the securities received, we report the fair value of the collateral received and a related obligation to return the collateral in the financial statements. In addition, we receive securities in connection with securities borrowing agreements which we are permitted to sell or re-pledge. At December 31, 2015, the fair value of all collateral received, which we are permitted to sell or re-pledge was $174 million. We have not sold or re-pledged this collateral. Investment Commitments As of December 31, 2015 , our investment commitments were $ 1.3 billion, which included $ 744 million of LPs, $ 330 million of private placement securities and $ 257 million of mortgage loans on real estate. Concentrations of Financial Instruments As of December 31, 2015 and 2014 , our most significant investments in one issuer were our investments in securities issued by the Federal Home Loan Mortgage Corporation with a fair value of $ 1.8 billion and $ 2.2 billion, respectively, or 2 % of our investe d assets portfolio , and our investments in securities issued by Fannie Mae with a fair value of $ 1.2 billion and $ 1.4 billion, respectively, or 1 % of our invested assets portfolio. As of December 31, 2015 and 2014 , our most significant investments in one industry were our investment securities in the utilities industry with a fair value of $ 12.8 billion , or 13 % of our invested assets portfolio, and our investment securities in the consumer non-cyclical industry with a fair value of $ 12.0 billion and $ 11.7 billion, respectively , or 12 % and 11 % , respectively, of our invested assets portfolio. These concentrations include both AFS and trading securities. |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments [Abstract] | |
Derivative Instruments | 6 . Derivative Instruments We maintain an overall risk management strategy that incorporates the use of derivative instruments to minimize significant unplanned fluctuations in earnings that are caused by interest rate risk, foreign currency exchange risk, equity market risk, default risk, basis risk and credit risk. We assess these risks by continually identifying and monitoring changes in our exposures that may adversely affect expected future cash flows and by evaluating hedging opportunities. Derivative activities are monitored by various management committees. The committees are responsible for overseeing the implementation of various hedging strategies that are developed through the analysis of financial simulation models and other internal and industry sources. The resulting hedging strategies are incorporated into our overall risk management strategies. See Note 1 for a detailed discussion of the accounting treatment for derivative instruments. See Note 2 0 for additional disclosures related to the fair value of our derivative instruments and Note 4 for derivative instruments related to our consolidated VIEs. Interest Rate Contracts We use derivative instruments as part of our interest rate risk management strategy. These instruments are economic hedges unless otherwise noted and include: Forward-Starting Interest Rate Swaps We use forward-starting interest rate swaps designated and qualifying as cash flow hedges to hedge our exposure to interest rate fluctuations related to the forecasted purchase s of certain assets and liabilities and anticipated issuances of fixed-rate securities . Interest Rate Cap Corridor s We use interest rate cap corridors to provide a level of protection from the effect of rising interest rates for certain life insurance products and annuity contracts. Interest rate cap corridors involve purchasing an interest rate cap at a specific cap rate and selling an interest rate cap with a higher cap rate. For each corridor, the amount of quarterly payments, if any, is determined by the rate at which the underlying index rate resets above the original capped rate. The corridor limits the benefit the purchaser can receive as the related interest rate index rises above the higher capped rate. There is no additional liability to us other than the purchase price associated with the interest rate cap corridor. Interest Rate Futures We use interest rate futures contracts to hedge the liability exposure on certain options in variable annuity products. These futures contracts require payment between our counterparty and us on a daily basis for changes in the futures index price. Interest Rate Swap Agreements We use interest rate swap agreements to hedge the liability exposure on certain options in variable annuity products. We also use interest rate swap agreements designated and q ualifying as cash flow hedges to hedge the interest rate risk of floating-rate bond coupon payments by replicating a fixed-rate bond . Finally, we use interest rate swap agreements designated and qualifying as fair value hedges to hedge against changes in the fair value of certain fixed-rate long-term debt and fixed maturity securities due to interest rate risks . Treasury and Reverse Treasury Locks We use treasury locks designated and qualifying as cash flow hedges to hedge the interest rate exposure related to our issuance of fixed-rate securities or the anticipated future cash flows of floating-rate fixed maturity securities due to changes in interest rates. In addition, we use reverse treasury locks designated and qualifying as cash flow hedges to hedge the interest rate exposure related to the anticipated purchase of fixed-rate securities or the anticipated future cash flows of floating-rate fixed maturity securities due to changes in interest rates. These derivatives are primarily structured to hedge interest rate risk inherent in the assumptions used to price certain liabilities. Foreign Currency Contracts We use derivative instruments as part of our foreign currency risk management strategy. These instruments are economic hedges unless otherwise noted and include: Currency Futures We use currency futures to hedge foreign exchange risk associated with certain options in variable annuity products. Currency futures exchange one currency for another at a specified date in the future at a specified exchange rate. Foreign Currency Swaps We use foreign currency swaps designated and qualifying as cash flow hedges, to hedge foreign exchange risk of investments in fixed maturity securities denominated in foreign currencies. A foreign currency swap is a contractual agreement to exchange one currency for another at specified dates in the future at a specified exchange rate. Equity Market Contracts We use derivative instruments as part of our equity market risk management strategy that are economic hedges and include: Call Options Based o n the S&P 500 Index® Our indexed annuity and IUL contracts permit the holder to elect an interest rate return or an equity market component, where interest credited to the contracts is linked to the performance of the S&P 500 Index ® (“ S&P 500 ”) . Contract holders may elect to rebalance index options at renewal dates, either annually or biannually. As of each renewal date, we have the opportunity to re-price the indexed component by establishing participation rates, caps, spreads and specified rates, subject to contractual guarantees. We purchase call options that are highly correlated to the portfolio allocation decisions of our contract holders, such that we are economically hedged with respect to equity returns for the current reset period. Consumer Price Index Swaps We use consumer price index swaps to hedge the liability exposure on certain options in fixed annuity products. Consumer price index swaps are contracts entered into at no cost and whose payoff is the difference between the consumer price index inflation rate and the fixed-rate determined as of inception. Equity Futures We use equity futures contracts to hedge the liability exposure on certain options in variable annuity products. These futures contracts require payment between our counterparty and us on a daily basis for changes in the futures index price. Put Options We use put options to hedge the liability exposure on certain options in variable annuity products. Put options are contracts that require counterparties to pay us at a specified future date the amount, if any, by which a specified equity index is less than the strike rate stated in the agreement, applied to a notional amount. Total Return Swaps W e use total return swaps to hedge the liability exposure on certain options in variable annuity products. We receive the total return on a portfolio of indexes and pay a floating-rate of interest. In addition, w e use total return swaps to hedge a portion of the liability related to our deferred compensation plans. We receive the total return on a portfolio of indexes and pay a floating-rate of interest. Variance Swaps We use variance swaps to hedge the liability exposure on certain options in variable annuity products. Variance swaps are contra cts entered into at no cost whose payoff is the difference between the realized variance rate of an underlying index and the fixed variance rate determined as of inception of the contract . Credit Contracts We use derivative instruments as part of our credit risk management strategy that are economic hedges and include: Credit Default Swaps – Selling Protection We sell credit default swaps to offer credit protection to contract holders and investors. The credit default swaps hedge the contract holders and investors against a drop in bond prices due to credit concerns of certain bond issuers. A credit default swap allows the investor to put the bond back to us at par upon a default event by the bond issuer. A default event is defined as bankruptcy, failure to pay, obligation acceleration or restructuring. Embedded Derivatives We have embedded derivatives that include: GLB Reserves Embedded Derivatives We use a hedging strategy designed to mitigate the risk and income statement volatility caused by changes in the equity markets, interest rates and volatility associated with GLBs offered in our variable annuity products, including products with GWB and GIB features. C hanges in the value of the hedge contracts due to changes in equity markets, interest rates and implied volatilities hedge the income statement effect of changes in embedded derivative GLB reserves caused by those same factors. We rebalance our hedge positions based upon changes in these factors as needed. While we actively manage our hedge positions, these hedge positions may not be totally effective in offsetting changes in the embedded derivative reserve due to, among other things, differences in timing between when a market exposure changes and corresponding changes to the hedge positions, extreme swings in the equity markets and interest rates, market volatility, contract holder behavior, divergence between the performance of the underlying funds and the hedging indices, divergence between the actual and expected performance of the hedge instruments and our ability to purchase hedging instruments at prices consistent with our desired risk and return trade-off. Certain features of these guarantees have elements of both insurance benefits accounted for under the Financial Services – Insurance – Claim Costs and Liabilities for Future Policy Benefits Subtopic of the FASB ASC (“benefit reserves”) and embedded derivatives accounted for under the Derivatives and Hedging and the Fair Value Measurements and Disclosures Topics of the FASB ASC (“embedded derivative reserves”). We calculate the value of the benefit reserves and the embedded derivative reserve s based on the specific characteristics of each GLB feature. Indexed Annuity and IUL Contracts Embedded Derivatives Our indexed annuity and IUL contracts permit the holder to elect an interest rate return or an equity market component, where interest credited to the contracts is linked to the performance of the S&P 500. Contract holders may elect to rebalance index options at renewal dates, either annually or biannually. As of each renewal date, we have the opportunity to re-price the indexed component by establishing participation rates, caps, spreads and specified rates, subject to contractual guarantees. We purchase S&P 500 call options that are highly correlated to the portfolio allocation decisions of our contract holders, such that we are economically hedged with respect to equity returns for the current reset period. Reinsurance Related Embedded Derivatives We have certain modified coinsurance arrangements and coinsurance with funds withheld reinsurance arrangements with embedded derivatives related to the withheld assets of the related funds. These derivatives are considered total return swaps with contractual returns that are attributable to various assets and liabilities associated with these reinsurance arrangements. We have derivative instruments with off-balance-sheet risks whose notional or contract amounts exceed the related credit exposure. Outstanding derivative instruments with off -balance-sheet risks (in millions) were as follows: As of December 31, 2015 As of December 31, 2014 Notional Fair Value Notional Fair Value Amounts Asset Liability Amounts Asset Liability Qualifying Hedges Cash flow hedges: Interest rate contracts (1) $ 2,937 $ 192 $ 46 $ 3,554 $ 408 $ 198 Foreign currency contracts (1) 910 84 2 642 45 21 Total cash flow hedges 3,847 276 48 4,196 453 219 Fair value hedges: Interest rate contracts (1) 1,529 269 198 875 259 - Non-Qualifying Hedges Interest rate contracts (1) 71,898 1,088 330 54,401 989 342 Foreign currency contracts (1) 74 - - 68 - - Equity market contracts (1) 27,882 680 269 24,310 886 243 Credit contracts (2) 103 - 9 126 - 3 Embedded derivatives: GLB reserves (2) - - 953 - - 174 Reinsurance related (3) - - 87 - - 150 Indexed annuity and IUL contracts (4) - - 1,100 - - 1,170 Total derivative instruments $ 105,333 $ 2,313 $ 2,994 $ 83,976 $ 2,587 $ 2,301 (1) Reported in derivative investments and other liabilities on our Consolidated Balance Sheets. (2) Reported in other liabilities on our Consolidated Balance Sheets. (3) Reported in reinsurance related embedded derivatives on our Consolidated Balance Sheets. (4) Reported in future contract benefits on our Consolidated Balance Sheets . The maturity of the notional amounts of derivative instruments (in millions) was as follows: Remaining Life as of December 31, 2015 Less Than 1 – 5 6 – 10 11 – 30 Over 30 1 Year Years Years Years Years Total Interest rate contracts (1) $ 10,408 $ 32,704 $ 18,554 $ 13,485 $ 1,213 $ 76,364 Foreign currency contracts (2) 104 138 334 408 - 984 Equity market contracts 18,048 6,796 2,753 18 267 27,882 Credit contracts 45 58 - - - 103 Total derivative instruments with notional amounts $ 28,605 $ 39,696 $ 21,641 $ 13,911 $ 1,480 $ 105,333 (1) As of December 31, 201 5 , the latest maturity date for which we were hedging our exposure to the variability in future cash flows for these instruments was April 2067 . (2) As of December 31, 201 5 , the latest maturity date for which we were hedging our exposure to the variability in future cash flows for these instruments was December 2045 . The change in our unrealized gain (loss) on derivative instruments in A OCI (in millions) was as follows: For the Years Ended December 31, 2015 2014 2013 Unrealized Gain (Loss) on Derivative Instruments Balance as of beginning-of-year $ 139 $ 256 $ 163 Other comprehensive income (loss): Unrealized holding gains (losses) arising during the period: Cash flow hedges: Interest rate contracts (258 ) (286 ) 167 Foreign currency contracts 17 36 (24 ) Change in foreign currency exchange rate adjustment 48 50 (19 ) Change in DAC, VOBA, DSI and DFEL 2 2 5 Income tax benefit (expense) 66 69 (45 ) Less: Reclassification adjustment for gains (losses) included in net income (loss): Cash flow hedges: Interest rate contracts (1) (190 ) (22 ) (21 ) Interest rate contracts (2) 1 3 3 Foreign currency contracts (1) 6 - 3 Associated amortization of DAC, VOBA, DSI and DFEL 1 1 1 Income tax benefit (expense) 64 6 5 Balance as of end-of-year $ 132 $ 139 $ 256 (1) The OCI offset is reported within net investment income on our Consolidated Statements of Comprehensive Income (Loss). (2) The OCI offset is reported within interest and debt expense on our Consolidated Statements of Comprehensive Income (Loss). The gains (losses) on derivative instruments (in millions) recorded within income (loss) from continuing operations on our Consolidated Statements of Comprehensive Income (Loss) were as follows: For the Years Ended December 31, 2015 2014 2013 Qualifying Hedges Cash flow hedges: Interest rate contracts (1) $ 8 $ (22 ) $ (21 ) Interest rate contracts (2) 1 - - Foreign currency contracts (1) 6 - 3 Total cash flow hedges 15 (22 ) (18 ) Fair value hedges: Interest rate contracts (1) (30 ) - - Interest rate contracts (2) 32 35 36 Interest rate contracts (3) (198 ) - - Total fair value hedges (196 ) 35 36 Non-Qualifying Hedges Interest rate contracts (3) 304 1,303 (989 ) Foreign currency contracts (3) (11 ) (8 ) (4 ) Equity market contracts (3) (118 ) (215 ) (1,306 ) Equity market contracts (4) 1 11 38 Credit contracts (3) (6 ) (1 ) 9 Embedded derivatives: GLB reserves (3) (779 ) (1,391 ) 2,153 Reinsurance related (3) 63 (42 ) 107 Indexed annuity and IUL contracts (3) (57 ) (210 ) (356 ) Total derivative instruments $ (784 ) $ (540 ) $ (330 ) (1) Reported in net investment income on our Consolidated Statements of Comprehensive Income (Loss). (2) Reported in interest and debt expense on our Consolidated Statements of Comprehensive Income (Loss). (3) Reported in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). (4) Reported in commissions and other expenses on our Consolidated Statements of Comprehensive Income (Loss). Gains (losses) recognized as a component of OCI (in millions) on derivative instruments designated and qualifying as cash flow hedges were as follows: For the Years Ended December 31, 2015 2014 2013 Offset to net investment income $ 14 (22 ) (19 ) Offset to interest and debt expense 1 4 4 As of December 31, 201 5 , $ 15 million of the deferred net gains ( losses ) on derivative instruments in A OCI were expected to be reclassified to earnings during the next 12 months. This reclassification would be due primarily to interest rate variances related to our interest rate swap agreements. For the years ended December 31, 201 5 and 201 4 , there were no material reclassifications to earnings due to hedged firm commitments no longer deemed probable or due to hedged forecasted transactions that had not occurred by the end of the originally specified time period. Information related to our credit default swap liabilities for which we are the seller (dollars in millions) was as follows: As of December 31, 2015 Credit Reason Nature Rating of Number Maximum for of Underlying of Fair Potential Maturity Entering Recourse Obligation (1) Instruments Value (2) Payout 12/20/2016 (3) (4) (5) BBB- 2 $ (2 ) $ 45 3/20/2017 (3) (4) (5) BBB- 3 (7 ) 58 5 $ (9 ) $ 103 As of December 31, 2014 Credit Reason Nature Rating of Number Maximum for of Underlying of Fair Potential Maturity Entering Recourse Obligation (1) Instruments Value (2) Payout 12/20/2016 (3) (4) (5) BBB- 3 $ (2 ) $ 68 3/20/2017 (3) (4) (5) BBB- 3 (1 ) 58 6 $ (3 ) $ 126 (1) Represents average credit ratings based on the midpoint of the applicable ratings among Moody' s , S& P and Fitch Ratings, as scaled to the corresponding S&P ratings. (2) Broker quotes are used to determine the market value of our credit default swaps. (3) These credit defau lt swaps were sold to a counter party of the consolidated VIEs discussed in Note 4 . (4) Credit default swaps were entered into in order to generate income by providing default protection in return for a quarterly payment. (5) Sellers do not have the right to demand indemnification or compensation from third parties in case of a loss (payment) on the contract. Details underlying the associated collateral of our credit default swaps for which we are the seller if credit risk- related contingent features w ere triggered (in millions) were as follows: As of December 31, 2015 2014 Maximum potential payout $ 103 $ 126 Less: Counterparty thresholds - - Maximum collateral potentially required to post $ 103 $ 126 Certain of our credit default swap agreements contain contractual provisions that allow for the netting of collateral with our counterparties related to all of our collateralized financing transactions that we have outstanding. If these netting agreements were not in place, we would have been required to post $ 9 million of collateral as of December 31, 201 5 . Credit Risk We are exposed to credit loss in the event of non-performance by our counterparties on various derivative contracts and reflect assumptions regarding the credit or NPR. The NPR is based upon assumptions for each counterparty’s credit spread over the estimated weighted average life of the counterparty exposure , less collateral held. As of December 31, 201 5 , the NPR adjustment was less than $ 1 million. The credit risk associated with such agreements is minimized by entering into agreements with financial institutions with long-standing, superior performance records. Additionally, we maintain a policy of requiring derivative contracts to be governed by an International Swaps and Derivatives Association (“ISDA”) Master Agreement. We are required to maintain minimum ratings as a matter of routine practice in negotiating ISDA agreements. Under some ISDA agreements, our insurance subsidiaries have agreed to maintain certain financial strength or claims-paying ratings. A downgrade below these levels could result in termination of derivative contracts, at which time any amounts payable by us would be dependent on the market value of the underlying derivative contracts. In certain transactions, we and the counterparty have entered into a credit support annex requiring either party to post collateral when net exposures exceed pre-determined thresholds. These thresholds vary by counterparty and credit rating. The amount of such exposure is essentially the net replacement cost or market value less collateral held for such agreements with each counterparty if the net market value is in our favor. As of December 31, 201 5 , our exposure was $ 15 million. The amounts recognized (in millions) by S&P credit rating of counterparty, for which we had the right to reclaim cash collateral or were obligated to return cash collateral, were as follows: As of December 31, 2015 As of December 31, 2014 Collateral Collateral Collateral Collateral Posted by Posted by Posted by Posted by S&P Counter- LNC Counter- LNC Credit Party (Held by Party (Held by Rating of (Held by Counter- (Held by Counter- Counterparty LNC) Party) LNC) Party) AA- $ 92 $ - $ 64 $ - A+ 67 - 47 - A 866 (143 ) 1,163 (85 ) A- 11 - 233 - BBB+ 351 - 27 - $ 1,387 $ (143 ) $ 1,534 $ (85 ) Balance Sheet Offsetting Information related to the effects of offsetting on our Consolidated Balance Sheets (in millions) were as follows: As of December 31, 2015 Embedded Derivative Derivative Instruments Instruments Total Financial Assets Gross amount of recognized assets $ 2,250 $ - $ 2,250 Gross amounts offset (713 ) - (713 ) Net amount of assets 1,537 - 1,537 Gross amounts not offset: Cash collateral (1,387 ) - (1,387 ) Net amount $ 150 $ - $ 150 Financial Liabilities Gross amount of recognized liabilities $ 139 $ 2,140 $ 2,279 Gross amounts offset (61 ) - (61 ) Net amount of liabilities 78 2,140 2,218 Gross amounts not offset: Cash collateral (143 ) - (143 ) Net amount $ (65 ) $ 2,140 $ 2,075 As of December 31, 2014 Embedded Derivative Derivative Instruments Instruments Total Financial Assets Gross amount of recognized assets $ 2,537 $ - $ 2,537 Gross amounts offset (677 ) - (677 ) Net amount of assets 1,860 - 1,860 Gross amounts not offset: Cash collateral (1,534 ) - (1,534 ) Net amount $ 326 $ - $ 326 Financial Liabilities Gross amount of recognized liabilities $ 130 $ 1,494 $ 1,624 Gross amounts offset (50 ) - (50 ) Net amount of liabilities 80 1,494 1,574 Gross amounts not offset: Cash collateral (85 ) - (85 ) Net amount $ (5 ) $ 1,494 $ 1,489 |
Federal Income Taxes
Federal Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Federal Income Taxes [Abstract] | |
Federal Income Taxes | 7 . Federal Income Taxes The federal income tax expense (benefit) on continuing operations (in millions) was as follows: For the Years Ended December 31, 2015 2014 2013 Current $ 212 $ 220 $ 169 Deferred 64 263 218 Federal income tax expense (benefit) $ 276 $ 483 $ 387 A reconciliation of the effective tax rate differences (in millions) was as follows: For the Years Ended December 31, 2015 2014 2013 Tax rate times pre-tax income $ 501 $ 700 $ 571 Effect of: Tax-preferred investment income (197 ) (185 ) (160 ) Tax credits (26 ) (27 ) (35 ) Change in uncertain tax positions (2 ) (16 ) 7 Other items - 11 4 Federal income tax expense (benefit) $ 276 $ 483 $ 387 Effective tax rate 19% 24% 24% The effective tax rate is the ratio of tax expense (benefit) over pre-tax income (loss). The tax-preferred investment income relates primarily to the separate account dividends-received deduction. The separate account dividends-received deduction benefit was $ 192 million , $163 million and $145 million for the years ended December 31, 2015 , 2014 and 2013 . The federal income tax asset (liability) (in millions) was as follows: As of December 31, 2015 2014 Current $ (136 ) $ (134 ) Deferred (1,867 ) (3,024 ) Total federal income tax asset (liability) $ (2,003 ) $ (3,158 ) Significant components of our deferred tax assets and liabilities (in millions) were as follows: As of December 31, 2015 2014 Deferred Tax Assets Future contract benefits and other contract holder funds $ 1,494 $ 1,167 Deferred gain on business sold through reinsurance 35 15 Reinsurance related embedded derivative asset 31 52 Investment activity - 138 Compensation and benefit plans 265 321 Net operating loss carryforwards 12 17 Tax credits 33 - Other 205 143 Total deferred tax assets 2,075 1,853 Deferred Tax Liabilities DAC 2,064 1,605 VOBA 313 219 Net unrealized gain on AFS securities 1,116 2,684 Net unrealized gain on trading securities 70 105 Intangibles 117 151 Investment activity 105 - Other 157 113 Total deferred tax liabilities 3,942 4,877 Net deferred tax asset (liability) $ (1,867 ) $ (3,024 ) As of December 31, 2015, we had $ 34 million of net operating loss carryforwards that begin to expire in 2031 . In addition, we had $ 33 million of alternative minimum tax credits that are not subject to expiration. Although realization is not assured, management believes that it is more likely than not that we will realize the benefits of our deferred tax assets, and, accordingly, no valuation allowance has been recorded. As of December 31, 2015 and 2014 , $ 1 3 million and $ 15 million , respectively, of our unrecognized tax benefits presented below, if recognized, would have affected our income tax expense and our effective tax rate. We are not aware of any events for which it is likely that unrecognized tax benefits will significantly increase or decrease within the next year. A reconciliation of the unrecognized tax benefits (in millions) was as follows: For the Years Ended December 31, 2015 2014 Balance as of beginning-of-year $ 15 $ 82 Increases for prior year tax positions - 34 Decreases for prior year tax positions (2 ) (24 ) Increases for current year tax positions - - Decreases for settlements with taxing authorities - (77 ) Balance as of end-of-year $ 13 $ 15 We recognize interest and penalties accrued, if any, related to unrecognized tax benefits as a component of tax expense. For the years ended December 31, 2015 , 2014 and 2013 , we recognized interest and penalty expense (benefit) related to uncertain tax positions of zero , $ (10) million and $ 2 million, respectively. We had accrued interest and penalty expense related to the unrecognized tax benefits of $ 3 million as of December 31, 2015 and 2014 . We are subject to examination by U.S. federal, state, local and non-U.S. income authorities. The Internal Revenue Service (“IRS”) examination for tax years 2009 through 2011 was closed in 2015 . We are currently not under examination by the IRS. However , LNC has filed a protest with the IRS Appeals division (“Appeals”). A protest for tax years 2005 through 2008 was previously filed with Appeals, and all tax years from 2005 through 2011 for the Company remain open. All protested items have been resolved for all open years but are subject to review by the U.S. Joint Committee on Taxation before a final settlement is reached . We do not expect any adjustments that would be material to our consolidated results of operations or financial condi tion. |
DAC, VOBA, DSI and DFEL
DAC, VOBA, DSI and DFEL | 12 Months Ended |
Dec. 31, 2015 | |
Deferred Policy Acquisition Costs and Value of Business Acquired [Abstract] | |
DAC, VOBA, DSI and DFEL | 8. DAC, VOBA, DSI and DFEL Changes in DAC (in millions) were as follows: For the Years Ended December 31, 2015 2014 2013 Balance as of beginning-of-year $ 7,558 $ 7,695 $ 5,943 Business acquired (sold) through reinsurance 38 - - Deferrals 1,490 1,537 1,564 Amortization, net of interest: Amortization, excluding unlocking, net of interest (879 ) (988 ) (816 ) Unlocking (238 ) 17 42 Adjustment related to realized (gains) losses (15 ) (31 ) (8 ) Adjustment related to unrealized (gains) losses 663 (672 ) 970 Balance as of end-of-year $ 8,617 $ 7,558 $ 7,695 Changes in VOBA (in millions) were as follows: For the Years Ended December 31, 2015 2014 2013 Balance as of beginning-of-year $ 649 $ 1,191 $ 724 Business acquired (sold) through reinsurance (22 ) 2 4 Deferrals 8 9 13 Amortization: Amortization, excluding unlocking (129 ) (186 ) (179 ) Unlocking (82 ) (21 ) (52 ) Accretion of interest (1) 56 64 68 Adjustment related to realized (gains) losses (1 ) (1 ) (1 ) Adjustment related to unrealized (gains) losses 414 (409 ) 614 Balance as of end-of-year $ 893 $ 649 $ 1,191 (1) The interest accrual rates utilized to calculate the accretion of interest ranged from 4.02% to 7.05% . Estimated future amortization of VOBA, net of interest (in millions), as of December 31, 2015 , was as follows: 2016 $ 61 2017 65 2018 68 2019 73 2020 82 Changes in DSI (in millions) were as follows: For the Years Ended December 31, 2015 2014 2013 Balance as of beginning-of-year $ 240 $ 267 $ 253 Deferrals 29 13 10 Amortization, net of interest: Amortization, excluding unlocking, net of interest (33 ) (38 ) (43 ) Unlocking 2 2 8 Adjustment related to realized (gains) losses (1 ) (4 ) (1 ) Adjustment related to unrealized (gains) losses 19 - 40 Balance as of end-of-year $ 256 $ 240 $ 267 Changes in DFEL (in millions) were as follows: For the Years Ended December 31, 2015 2014 2013 Balance as of beginning-of-year $ 1,401 $ 1,938 $ 1,373 Deferrals 539 402 320 Amortization, net of interest: Amortization, excluding unlocking, net of interest (308 ) (335 ) (216 ) Unlocking (68 ) (50 ) (14 ) Adjustment related to realized (gains) losses (4 ) (6 ) (2 ) Adjustment related to unrealized (gains) losses 392 (548 ) 477 Balance as of end-of-year $ 1,952 $ 1,401 $ 1,938 |
Reinsurance
Reinsurance | 12 Months Ended |
Dec. 31, 2015 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance | 9. Reinsurance The following summarizes reinsurance amounts (in millions) recorded on our Consolidated Statements of Comprehensive Income (Loss), excluding amounts attributable to the indemnity reinsurance transaction with Swiss Re: For the Years Ended December 31, 2015 2014 2013 Direct insurance premiums and fee income $ 9,529 $ 9,064 $ 8,023 Reinsurance assumed 73 7 8 Reinsurance ceded (1,311 ) (1,410 ) (1,275 ) Total insurance premiums and fee income $ 8,291 $ 7,661 $ 6,756 Direct insurance benefits $ 6,420 $ 6,127 $ 5,487 Reinsurance recoveries netted against benefits (1,376 ) (1,448 ) (1,625 ) Total benefits $ 5,044 $ 4,679 $ 3,862 Our insurance companies cede insurance to other companies. The portion of our life insurance and annuity risks exceeding each of our insurance companies’ retention limit is reinsured with other insurers. We seek reinsurance coverage to limit our exposure to mortality losses and to enhance our capital management. As of December 31, 2015, our policy for our reinsurance program was to retain no more than $20 million on a single insured life. We reinsure approximately 25% of the mortality risk on newly issued life insurance contracts. As of December 31 , 2015, approximately 43 % of our total individual life in-force amount is reinsured. Portions of our deferred annuity business have been reinsured on a Modco basis with other companies to limit our exposure to interest rate risks. As of December 31, 201 5 , the reserves associated with these reinsurance arrangements totaled $ 617 million. We focus on obtaining reinsurance from a diverse group of reinsurers, and we monitor concentration as well as financial strength ratings of our reinsurers. Our amounts recoverable from reinsurers represent receivables from and reserves ceded to reinsurers. The amounts recoverable from reinsurers were $ 5.6 billion and $5.7 billion as of December 31, 2015 and 2014 , respectively . Our reinsurance operations were acquired by Swiss Re in December 2001 through a series of indemnity reinsurance transactions. As such, Swiss Re reinsured certain of our liabilities and obligations under the indemnity reinsurance agreements and thereby represents our largest reinsurance exposure. As we are not relieved of our liability to the ceding companies for this business, the liabilities and obligations associated with the reinsured policies remain on our Consolidated Balance Sheets with a corresponding reinsurance receivable from Swiss Re, which totaled $2.4 billion and $2.5 billion as of December 31, 2015 and 2014, respectively. Swiss Re has funded a trust, with a balance of $ 2.6 billion as of December 31, 2015 , to support this business. In addition to various remedies that we would have in the event of a default by Swiss Re, we continue to hold assets in support of certain of the transferred reserves. These assets consist of those reported as trading securities and certain mortgage loans. Our liabilities for funds withheld and embedded derivatives as of December 31, 2015 , included $ 634 million and $ 79 million, respectively, related to the business sold to Swiss Re. We recorded the gain related to the indemnity reinsurance transactions with Swiss Re as a deferred gain on business sold through reinsurance on our Consolidated Balance Sheets. The deferred gain is being amortized into income at the rate that earnings on the reinsured business are expected to emerge, over a period of 15 years from the date of sale. W e amortized $48 million, after-tax , of deferred gain on business sold through reinsurance during each of 2015 , 2014 and 2013. During the fourth quarter of 2014, we entered into an agreement to recapture certain traditional and interest sensitive business under several yearly renewable term reinsurance treaties that were originally ceded to a reinsurer. As part of this agreement, we received cash consideration of $500 million, of which $78 million represented reimbursement for prepaid reinsurance premiums related to the recaptured treaties. We re cognized a one-time gain of $57 million, after-tax, related to this recapture with the remaining difference between the proceeds and the gain being driven primarily by increases in reserves of $226 million and a reduction of DAC of $123 million . |
Goodwill and Specifically Ident
Goodwill and Specifically Identifiable Intangible Assets | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Specifically Identifiable Intangible Assets | 10 . Goodwill and Specifically Identifiable Intangible Assets The changes in the carrying amount of goodwill (in millions) by reportable segment were as follows: For the Year Ended December 31, 2015 Gross Accumulated Goodwill Impairment Net as of as of Goodwill Beginning- Beginning- as of End- of-Year of-Year Impairment of-Year Annuities $ 1,040 $ (600 ) $ - $ 440 Retirement Plan Services 20 - - 20 Life Insurance 2,188 (649 ) - 1,539 Group Protection 274 - - 274 Total goodwill $ 3,522 $ (1,249 ) $ - $ 2,273 For the Year Ended December 31, 2014 Gross Accumulated Goodwill Impairment Net as of as of Goodwill Beginning- Beginning- as of End- of-Year of-Year Impairment of-Year Annuities $ 1,040 $ (600 ) $ - $ 440 Retirement Plan Services 20 - - 20 Life Insurance 2,188 (649 ) - 1,539 Group Protection 274 - - 274 Other Operations – Media 341 (341 ) - - Total goodwill $ 3,863 $ (1,590 ) $ - $ 2,273 The gross carrying amounts and accumulated amortization (in millions) for each major specifically identifiable intangible asset class by reportable segment were as follows: As of December 31, 2015 As of December 31, 2014 Gross Gross Carrying Accumulated Carrying Accumulated Amount Amortization Amount Amortization Life Insurance: Sales force $ 100 $ 39 $ 100 $ 35 Retirement Plan Services: Mutual fund contract rights (1) 5 - 5 - Total $ 105 $ 39 $ 105 $ 35 (1) No amortization recorded as the intangible asset has indefinite life. Future estimated amortization of specifically identifiable intangible assets (in m illions) as of December 31, 2015 , was as follows: 2016 $ 4 2017 4 2018 4 2019 4 2020 4 Thereafter 41 |
Guaranteed Benefit Features
Guaranteed Benefit Features | 12 Months Ended |
Dec. 31, 2015 | |
Guaranteed Benefit Features [Abstract] | |
Guaranteed Benefit Features | 11 . Guaranteed Benefit Features Information on the GDB features outstanding (dollars in millions) was as follows: As of December 31, 2015 (1) 2014 (1) Return of Net Deposits Total account value $ 85,345 $ 85,917 Net amount at risk (2) 1,201 183 Average attained age of contract holders 63 years 62 years Minimum Return Total account value $ 111 $ 135 Net amount at risk (2) 24 25 Average attained age of contract holders 75 years 74 years Guaranteed minimum return 5% 5% Anniversary Contract Value Total account value $ 24,659 $ 26,021 Net amount at risk (2) 1,345 597 Average attained age of contract holders 69 years 68 years (1) Our variable contracts with guarantees may offer more than one type of guarantee in each contract; therefore, the amounts listed are not mutually exclusive. (2) Represents the amount of death benefit in excess of the account balance that is subject to market fluctuations. The determination of GDB liabilities is based on models that involve a range of scenarios and assumptions, including those regarding expected market rates of return and volatility, contract surrender rates and mortality experience. The following summarizes the balances of and changes in the liabilities for GDBs (in millions), which were recorded in future contract benefits on our Consolidated Balance Sheets: For the Years Ended December 31, 2015 2014 2013 Balance as of beginning-of-year $ 89 $ 73 $ 104 Changes in reserves 52 34 (10 ) Benefits paid (26 ) (18 ) (21 ) Balance as of end-of-year $ 115 $ 89 $ 73 Variable Annuity Contracts Account balances of variable annuity contracts with guarantees (in millions) were invested in separate account investment options as follows: As of December 31, 2015 2014 Asset Type Domestic equity $ 48,362 $ 49,569 International equity 18,382 18,791 Bonds 26,492 26,808 Money market 13,057 12,698 Total $ 106,293 $ 107,866 Percent of total variable annuity separate account values 99% 99% Secondary Guarantee Products Future contract benefits and other contract holder funds include reserves for our secondary guarantee products sold through our Life Insurance segment. These UL and VUL products with secondary guarantees represented 35 % of total life insurance in-force reserves as of December 31, 2015 , and 3 3 % of total s ales for the year ended December 31, 2015 . |
Short-Term and Long-Term Debt
Short-Term and Long-Term Debt | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Short-Term and Long-Term Debt | 12 . Short-Term and Long-Term Debt Details underlying short-term and long-term debt (in millions) were as follows: As of December 31, 2015 2014 Short-Term Debt Current maturities of long-term debt $ - $ 250 Total short-term debt $ - $ 250 Long-Term Debt, Excluding Current Portion Senior notes: LIBOR + 3 bps notes, due 2017 (1) $ 250 $ 250 7.00% notes, due 2018 200 200 LIBOR + 110 bps loan, due 2018 250 250 8.75% notes, due 2019 (2) 487 487 6.25% notes, due 2020 (2) 300 300 4.85% notes, due 2021 (2) 300 300 4.20% notes, due 2022 (2) 300 300 4.00% notes, due 2023 (2) 350 350 3.35% notes, due 2025 (2) 300 - 6.15% notes, due 2036 (2) 498 498 6.30% notes, due 2037 (1)(2) 375 375 7.00% notes, due 2040 (1)(2) 500 500 Total senior notes 4,110 3,810 Capital securities: 7.00%, due 2066 722 722 6.05%, due 2067 491 491 Total capital securities 1,213 1,213 Unamortized premiums (discounts) (12 ) (12 ) Fair value hedge – interest rate swap agreements 271 259 Total unamortized premiums (discounts) and fair value hedge – interest rate swap agreements 259 247 Total long-term debt $ 5,582 $ 5,270 (1) Categorized as operating debt for leverage ratio calculations as the proceeds were used as a long-term structured solution to reduce the strain on increasing statutory reserves associated with secondary guarantee UL and term policies. (2) We have the option to repurchase the outstanding notes by paying the greater of 100% of the principal amount of the notes to be redeemed or the make-whole amount (as defined in each note agreement), plus in each case any accrued and unpaid interest as of the date of redemption. We did not recognize a gain or loss on the extinguishment of debt for the years ended December 31, 2015, 2014 and 2013, respectively. Future principal payments due on long-term debt (in millions) as of December 31, 2015 , were as follows: 2016 $ - 2017 250 2018 450 2019 487 2020 300 Thereafter 3,836 Total $ 5,323 For our long-term debt outstanding, unsecured senior debt, which consists of senior notes, fixed-rate notes and other notes with varying interest rates, ranks highest in priority, followed by capital securities. Credit Facilities and Letters of Credit Credit facilities, which allow for borrowing or issuances of letters of credit (“LOCs”), and LOCs (in millions) were as follows: As of December 31, 2015 Expiration Maximum LOCs Date Available Issued Credit Facilities Five-year revolving credit facility May-2018 $ 2,500 $ 451 LOC facility (1) Dec-2019 350 350 LOC facility (2) Mar-2023 125 125 LOC facility (1) Mar-2023 920 920 LOC facility (1) Aug-2031 990 884 LOC facility (1) Oct-2031 1,034 1,031 Total $ 5,919 $ 3,761 (1) Our wholly-owned subsidiaries entered into irrevocable LOC facility agreements with third-party lenders supporting inter-company reinsurance agreements. (2) We entered into an irrevocable LOC facility agreement with a third-party lender supporting certain fees owed to another third-party lender that automatically renews on an annual basis, unless not extended by the third-party upon 30 days’ notice. Effective as of May 29, 2013, we entered into a credit agreement with a syndicate of banks. This agreement (the “credit facility”) allows for the issuance of LOCs of up to $2.5 billion and borrowing of up to $2.5 billion, $1.75 billion of which is available only to reimburse the banks for drawn LOCs. The credit facility is unsecured and has a commitment termination date of May 29, 2018. The LOCs support inter-company reinsurance transactions and specific treaties associated with our business sold through reinsurance. LOCs are used primarily to satisfy the U.S. regulatory requirements of our domestic insurance companies for which reserve credit is provided by our affiliated reinsurance companies and our domestic clients of the business sold through reinsurance. The credit facility contains or includes: · Customary terms and conditions, including covenants restricting our ability to incur liens, merge or consolidate with another entity where we are not the surviving entity and dispose of all or substantially all of our assets; · Financial covenants including maintenance of a minimum consolidated net worth (as defined in the facility) equal to the sum of $9.4 billion plus 50% of the aggregate net proceeds of equity issuances received by us in accordance with the terms of the credit facility; and a debt-to-capital ratio as defined in accordance with the credit facility not to exceed 0.35 to 1.00 ; and · Customary events of default, subject to certain materiality thresholds and grace periods for certain of those events of default. Upon an event of default, the credit facility provides that, among other things, the commitments may be terminated and the loans then outstanding may be declared due and payable. As of December 31, 2015 , we were in compliance with all such covenants. Our LOC facility agreements each contain customary terms and conditions, including early termination fees, covenants restricting the ability of the subsidiaries to incur liens, merge or consolidate with another entity and dispose of all or substantially all of their assets. Upon an event of early termination, the agreements require the immediate payment of all or a portion of the present value of the future LOC fees that would have otherwise been paid. Further, the agreements contain customary events of default, subject to certain materiality thresholds and grace periods for certain of those events of default. The events of default include payment defaults, covenant defaults, material inaccuracies in representations and warranties, bankruptcy and liquidation proceedings and other customary defaults. Upon an event of default, the agreements provide that, among other things, obligations to issue, amend or increase the amount of any LOC shall be terminated and any obligations shall become immediately due and payable. As of December 31, 2015 , we were in compliance with all such covenants. Shelf Registration We currently have an effective shelf registration statement, which allows us to issue, in unlimited amounts, securities, including debt securities, preferred stock, common stock, warrants, stock purchase contracts, stock purchase units and depository shares. Certain Debt Covenants on Capital Securities Our $1.2 billion in principal amount of capital securities outstanding contain certain covenants that require us to make interest payments in accordance with an alternative coupon satisfaction mechanism (“ACSM”) if we determine that one of the following trigger events exists as of the 30th day prior to an interest payment date (“determination date”): · The Lincoln National Life Insurance Company’s (“LNL”) risk-based capital (“RBC”) ratio is less than 175% (based on the most recent annual financial statement filed with the State of Indiana); or · (i) The sum of our consolidated net income for the four trailing fiscal quarters ending on the quarter that is two quarters prior to the most recently completed quarter prior to the determination date is zero or negative; and (ii) our consolidated stockholders’ equity (excluding AOCI and any increase in stockholders’ equity resulting from the issuance of preferred stock during a quarter), or “adjusted stockholders’ equity,” as of (x) the most recently completed quarter and (y) the end of the quarter that is two quarters before the most recently completed quarter, has declined by 10% or more as compared to the quarter that is 10 fiscal quarters prior to the last completed quarter, or the “benchmark quarter.” The ACSM would generally require us to use commercially reasonable efforts to satisfy our obligation to pay interest in full on the capital securities with the net proceeds from sales of our common stock and warrants to purchase our common stock with an exercise price greater than the market price. We would have to utilize the ACSM until the trigger events no longer existed. Our failure to pay interest pursuant to the ACSM will not result in an event of default with respect to the capital securities nor will a nonpayment of interest unless it lasts for 10 consecutive years, although such breaches may result in monetary damages to the holders of the capital securities. As of December 31, 2015 , we were in compliance with all such covenants. |
Contingencies and Commitments
Contingencies and Commitments | 12 Months Ended |
Dec. 31, 2015 | |
Contingencies and Commitments [Abstract] | |
Contingencies and Commitments | 13 . Contingencies and Commitments Contingencies Regulatory and Litigation Matters Regulatory bodies, such as state insurance departments, the SEC, Financial Industry Regulatory Authority and other regulatory bodies regularly make inquiries and conduct examinations or investigations concerning our compliance with, among other things, insurance laws, securities laws, laws governing the activities of broker-dealers, registered investment advisors and unclaimed property laws. LNC and its subsidiaries are involved in various pending or threatened legal or regulatory proceedings, including purported class actions, arising from the conduct of business both in the ordinary course and otherwise. In some of the matters, very large and/or indeterminate amounts, including punitive and treble damages, are sought. Modern pleading practice in the U.S. permits considerable variation in the assertion of monetary damages or other relief. Jurisdictions may permit claimants not to specify the monetary damages sought or may permit claimants to state only that the amount sought is sufficient to invoke the jurisdiction of the trial court. In addition, jurisdictions may permit plaintiffs to allege monetary damages in amounts well exceeding reasonably possible verdicts in the jurisdiction for similar matters. This variability in pleadings, together with the actual experiences of LNC in litigating or resolving through settlement numerous claims over an extended period of time, demonstrates to management that the monetary relief which may be specified in a lawsuit or claim bears little relevance to its merits or disposition value. Due to the unpredictable nature of litigation, the outcome of a litigation matter and the amount or range of potential loss at particular points in time is normally difficult to ascertain. Uncertainties can include how fact finders will evaluate documentary evidence and the credibility and effectiveness of witness testimony, and how trial and appellate courts will apply the law in the context of the pleadings or evidence presented, whether by motion practice, or at trial or on appeal. Disposition valuations are also subject to the uncertainty of how opposing parties and their counsel will themselves view the relevant evidence and applicable law. We establish liabilities for litigation and regulatory loss contingencies when information related to the loss contingencies shows both that it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. It is possible that some matters could require us to pay damages or make other expenditures or establish accruals in amounts that could not be estimated as of December 31, 2015. While the potential future charges could be material in the particular quarterly or annual periods in which they are recorded, based on information currently known by management, management does not believe any such charges are likely to have a material adverse effect on LNC’s financial condition. For some matters, the Company is able to estimate a reasonably possible range of loss. For such matters in which a loss is probable, an accrual has been made. For such matters where a loss is believed to be reasonably possible, but not probable, no accrual has been made. Accordingly, the estimate contained in this paragraph reflects two types of matters. For some matters included within this estimate, an accrual has been made, but there is a reasonable possibility that an exposure exists in excess of the amount accrued. In these cases, the estimate reflects the reasonably possible range of loss in excess of the accrued amount. For other matters included within this estimation, no accrual has been made because a loss, while potentially estimable, is believed to be reasonably possible but not probable. In these cases, the estimate reflects the reasonably possible loss or range of loss. As of December 31, 201 5, we estimate the aggregate range of reasonably possible losses, including amounts in excess of amounts accrued for these matters as of such date, to be up to approximately $ 175 million. For other matters, we are not currently able to estimate the reasonably possible loss or range of loss. We are often unable to estimate the possible loss or range of loss until developments in such matters have provided sufficient information to support an assessment of the range of possible loss, such as quantification of a damage demand from plaintiffs, discovery from other parties and investigation of factual allegations, rulings by the court on motions or appeals, analysis by experts and the progress of settlement negotiations. On a quarterly and annual basis, we review relevant information with respect to litigation contingencies and update our accruals, disclosures and estimates of reasonably possible losses or ranges of loss based on such reviews . On June 13, 2009, a single named plaintiff filed a putative national class action in the Circuit Court of Allen County (“Court”), Indiana, captioned Peter S. Bezich v. The L incoln National Life Insurance Company , No. 02C01-0906-PL73, asserting he was charged a cost of insurance fee that exceeded the applicable mortality charge, and that this fee breached the terms of the insurance contract. Solely to avoid the costs, risks and uncertainties inherent in litigation, and without admitting any liability or wrongdoing, we reached a settlement with the plaintiff resolving all claims related to this litigation. On September 9, 2015, the litigation was stayed pending court approval of the settlement for the entire class. The Court approved the settlement on February 4, 2016, triggering a 30-day appeal period. On July 23, 2012, LNL was added as a noteholder defendant to a putative class action adversary proceeding (“adversary proceeding”) captioned Lehman Brothers Special Financing, Inc. v. Bank of America, N.A. et al., Adv. Pro. No. 10-03547 (JMP) and instituted under In re Lehman Brothers Holdings Inc. in the United States Bankruptcy Court in the Southern District of New York. Plaintiff Lehman Brothers Special Financing Inc. seeks to (i) overturn the application of certain priority of payment provisions in 47 collateralized debt obligation transactions on the basis such provisions are unenforceable under the Bankruptcy Code; and (ii) recover funds paid out to noteholders in accordance with the note agreements. We are vigorously defending this matter. Commitments Operating Leases Certain subsidiaries of ours lease their home office properties. In 2006, we exercised the right and option to extend the Fort Wayne lease for two extended terms such that the lease shall expire in 2019. We retain our right and option to exercise the remaining four extended terms of five years each in accordance with the lease agreement. These agreements also provide us with the right of first refusal to purchase the properties at a price defined in the agreements and the option to purchase the leased properties at fair market value on the last day of any renewal period. In 2012, we exercised the right and option to extend the Hartford lease for one extended term such that the lease shall expire in 2018. During 2007, we moved our corporate headquarters to Radnor, Pennsylvania from Philadelphia, Pennsylvania and entered into a new 13-year lease for office space. Total rental expense on operating leases for the years ended December 31, 2015 , 2014 and 2013 , was $ 42 million, $44 million and $44 million, respectively. Future minimum rental commitments (in millions) as of December 31, 2015 , were as follows: 2016 $ 41 2017 38 2018 32 2019 25 2020 14 Thereafter 27 Total $ 177 Capital Leases In December 2015, we entered into a five-year, sale-leaseback transaction on $47 million (net of amortization) of assets. In December 2014, we entered into a five-year, sale-leaseback transaction on $83 million (net of amortization) of assets. Both of these transactions have been classified as capital leases on our Consolidated Balance Sheets. These assets will continue to be amortized on a straight-line basis over the assets’ remaining lives. Total accumulated amortization related to these leased assets was $64 million and $55 million as of December 31, 2015 and 2014, respectively . Future minimum lease payments under capital leases (in millions) as of December 31, 2015, were as follows: 2016 $ 2 2017 2 2018 2 2019 85 2020 48 Total minimum lease payments 139 Less: Amount representing interest 9 Present value of minimum lease payments $ 130 Football Stadium Naming Rights Commitment In 2002, we entered into an agreement with the Philadelphia Eagles to name the Eagles’ new stadium Lincoln Financial Field. In exchange for the naming rights, we agreed to pay $ 140 million over a 20 -year period through annual payments to the Philadelphia Eagles, which average approximately $7 million per year. The total amount includes a maximum annual increase related to the Consumer Price Index. This future commitment has not been recorded as a liability on our Consolidated Balance Sheets as it is being accounted for in a manner consistent with the accounting for operating leases under the Leases Topic of the FASB ASC. Vulnerability from Concentrations As of December 31, 2015 , we did not have a concentration of: business transactions with a particular customer or lender; sources of supply of labor or services used in the business; or a market or geographic area in which business is conducted that makes us vulnerable to an event that is at least reasonably possible to occur in the near term and which could cause a severe impact to our financial condition. Although we do not have any significant concentration of customers, our American Legacy Variable Annuity (“ALVA”) product offered in our Annuities segment is significant to this segment. The ALVA product accounted for 18% , 20% and 17% of Annuities’ variable annuity product deposits in 2015 , 2014 and 2013 , respectively, and represented approximately 42% , 44% and 47% of the segment’s total variable annuity product account values as of December 31, 201 5 , 2014 and 2013 , respectively. In addition, fund choices for certain of our other variable annuity products offered in our Annuities segment include American Fund Insurance Series SM (“AFIS”) funds. For the Annuities segment, AFIS funds accounted for 20% , 22% and 19% of variable annuity product deposits in 2015 , 2014 and 2013 , respectively, and represented 48% , 50% and 54% of the segment’s total variable annuity product account values as of December 31, 2015 , 2014 and 2013 , respectively. Other Contingency Matters State guaranty funds assess insurance companies to cover losses to contract holders of insolvent or rehabilitated companies. Mandatory assessments may be partially recovered through a reduction in future premium taxes in some states. We have accrued for expected assessments and the related reductions in future state premium taxes, which net to assessments (recoveries) of $(16) million and $(15) million as of December 31, 2015 and 2014 , respectively. |
Shares and Stockholders' Equity
Shares and Stockholders' Equity | 12 Months Ended |
Dec. 31, 2015 | |
Shares and Stockholders' Equity [Abstract] | |
Shares and Stockholders' Equity | 14 . Shares and Stockholders’ Equity Common and Preferred Shares The changes in our preferred and common stock (number of shares) were as follows: For the Years Ended December 31, 2015 2014 2013 Series A Preferred Stock Balance as of beginning-of-year - - 9,532 Conversion of convertible preferred stock (1) - - (5,818 ) Redemption of convertible preferred stock - - (3,714 ) Balance as of end-of-year - - - Common Stock Balance as of beginning-of-year 256,551,440 262,896,701 271,402,586 Conversion of convertible preferred stock (1) - - 93,088 Stock issued for exercise of warrants 1,168,966 4,356,385 1,981,856 Stock compensation/issued for benefit plans 2,108,155 1,770,430 1,399,995 Retirement/cancellation of shares (15,992,668 ) (12,472,076 ) (11,980,824 ) Balance as of end-of-year 243,835,893 256,551,440 262,896,701 Common Stock as of End-of-Year Assuming conversion of preferred stock 243,835,893 256,551,440 262,896,701 Diluted basis 247,732,609 261,538,593 272,196,891 (1) Represents the conversion of Series A preferred stock into common stock. Our common and Series A preferred stocks are without par value. Average Shares A reconciliation of the denominator (number of shares) in the calculations of basic and diluted earnings (loss) per common share was as follows: For the Years Ended December 31, 2015 2014 2013 Weighted-average shares, as used in basic calculation 250,629,243 260,877,533 265,631,377 Shares to cover exercise of outstanding warrants 1,389,768 4,342,860 9,884,307 Shares to cover conversion of preferred stock - - 74,582 Shares to cover non-vested stock 1,302,859 1,522,737 1,491,483 Average stock options outstanding during the year 3,162,508 3,828,292 2,873,295 Assumed acquisition of shares with assumed proceeds from exercising outstanding warrants (262,709 ) (894,175 ) (2,630,939 ) Assumed acquisition of shares with assumed proceeds and benefits from exercising stock options (at average market price for the year) (2,258,658 ) (2,679,571 ) (2,036,098 ) Shares repurchaseable from measured but unrecognized stock option expense (45,958 ) (75,268 ) (139,131 ) Average deferred compensation shares 1,021,059 1,041,587 - Weighted-average shares, as used in diluted calculation 254,938,112 267,963,995 275,148,876 In the event the average market price of LNC common stock exceeds the issue price of stock options and the options have a dilutive effect to our EPS, such options will be shown in the table above. For 2013, t he income used in the c alculation of our diluted EPS was our net income (loss) reduced by preferred stock dividends. We have participants in our deferred compensation plans who selected LNC stock as the measure for the investment return attributable to all or a portion of their deferral amounts. For the years ended December 2015 and 2014, the effect of settling this obligation in LNC stock (“equity classification”) was more dilutive than the scenario of settling in cash (“liability classification”). Therefore, for our EPS calculation for these periods, we added these shares to the denominator and adjusted the numerator to present net income as if the shares had been accounted for under equity classification by removing the mark-to-market adjustment included in net income attributable to these deferred units of LNC stock. The amount of this adjustment was $ 4 million and $ ( 4 ) million for the years ended December 31, 2015 and 2014, respectively. As o f December 31, 2015 , we had 1 ,066,941 outstanding warrants. The warrants, each representing the right to purchase one share of our common stock, no par value per share, had an exercise price of $ 10.31 as of December 31, 2015 , subject to adjustment. The warrants expire on July 10, 2019 , and are listed on the New York Stock Exchange under the symbol “LNC WS.” A OCI The foll owing summarizes the components and changes in A OCI (in millions): For the Years Ended December 31, 2015 2014 2013 Unrealized Gain (Loss) on AFS Securities Balance as of beginning-of-year $ 3,213 $ 1,538 $ 4,020 Unrealized holding gains (losses) arising during the year (4,541 ) 3,855 (5,766 ) Change in foreign currency exchange rate adjustment (45 ) (47 ) 19 Change in DAC, VOBA, DSI, future contract benefits and other contract holder funds 1,294 (1,252 ) 1,834 Income tax benefit (expense) 1,147 (895 ) 1,369 Less: Reclassification adjustment for gains (losses) included in net income (loss) 145 10 (67 ) Associated amortization of DAC, VOBA, DSI and DFEL (27 ) (32 ) (29 ) Income tax benefit (expense) (41 ) 8 34 Balance as of end-of-year $ 991 $ 3,213 $ 1,538 Unrealized OTTI on AFS Securities Balance as of beginning-of-year $ 26 $ (7 ) $ (61 ) (Increases) attributable to: Gross OTTI recognized in OCI during the year (30 ) (12 ) (11 ) Change in DAC, VOBA, DSI and DFEL 4 2 1 Income tax benefit (expense) 9 4 4 Decreases attributable to: Changes in fair value, sales, maturities or other settlements of AFS securities 43 65 100 Change in DAC, VOBA, DSI and DFEL (17 ) (5 ) (8 ) Income tax benefit (expense) (9 ) (21 ) (32 ) Balance as of end-of-year $ 26 $ 26 $ (7 ) Unrealized Gain (Loss) on Derivative Instruments Balance as of beginning-of-year $ 139 $ 256 $ 163 Unrealized holding gains (losses) arising during the year (241 ) (250 ) 143 Change in foreign currency exchange rate adjustment 48 50 (19 ) Change in DAC, VOBA, DSI and DFEL 2 2 5 Income tax benefit (expense) 66 69 (45 ) Less: Reclassification adjustment for gains (losses) included in net income (loss) (183 ) (19 ) (15 ) Associated amortization of DAC, VOBA, DSI and DFEL 1 1 1 Income tax benefit (expense) 64 6 5 Balance as of end-of-year $ 132 $ 139 $ 256 Foreign Currency Translation Adjustment Balance as of beginning-of-year $ (3 ) $ (5 ) $ (4 ) Foreign currency translation adjustment arising during the year (2 ) 2 (1 ) Balance as of end-of-year $ (5 ) $ (3 ) $ (5 ) Funded Status of Employee Benefit Plans Balance as of beginning-of-year $ (279 ) $ (219 ) $ (310 ) Adjustment arising during the year (21 ) (96 ) 140 Income tax benefit (expense) 1 36 (49 ) Balance as of end-of-year $ (299 ) $ (279 ) $ (219 ) The following summarizes the reclassifications out of AOCI (in millions) and the associated line item in the Consolidated Statements of Comprehensive Income (Loss): For the Years Ended December 31, 2015 2014 2013 Unrealized Gain (Loss) on AFS Securities Gross reclassification $ 145 $ 10 $ (67 ) Total realized gain (loss) Associated amortization of DAC, VOBA, DSI and DFEL (27 ) (32 ) (29 ) Total realized gain (loss) Reclassification before income Income (loss) from continuing tax benefit (expense) 118 (22 ) (96 ) operations before taxes Income tax benefit (expense) (41 ) 8 34 Federal income tax expense (benefit) Reclassification, net of income tax $ 77 $ (14 ) $ (62 ) Net income (loss) Unrealized OTTI on AFS Securities Gross reclassification $ 2 $ 65 $ 100 Total realized gain (loss) Change in DAC, VOBA, DSI and DFEL - (5 ) (8 ) Total realized gain (loss) Reclassification before income Income (loss) from continuing tax benefit (expense) 2 60 92 operations before taxes Income tax benefit (expense) - (21 ) (32 ) Federal income tax expense (benefit) Reclassification, net of income tax $ 2 $ 39 $ 60 Net income (loss) Unrealized Gain (Loss) on Derivative Instruments Gross reclassifications: Interest rate contracts $ (190 ) $ (22 ) $ (21 ) Net investment income Interest rate contracts 1 3 3 Interest and debt expense Foreign currency contracts 6 - 3 Net investment income Total gross reclassifications (183 ) (19 ) (15 ) Associated amortization of DAC, VOBA, DSI and DFEL 1 1 1 Commissions and other expenses Reclassifications before income Income (loss) from continuing tax benefit (expense) (182 ) (18 ) (14 ) operations before taxes Income tax benefit (expense) 64 6 5 Federal income tax expense (benefit) Reclassification, net of income tax $ (118 ) $ (12 ) $ (9 ) Net income (loss) |
Realized (Gain) Loss
Realized (Gain) Loss | 12 Months Ended |
Dec. 31, 2015 | |
Realized (Gain) Loss [Abstract] | |
Realized (Gain) Loss | 15. Realized Gain (Loss) Details underlying realized gain (loss) (in millions) reported on our Consolidated Statements of Comprehensive Income (Loss) were as follows: For the Years Ended December 31, 2015 2014 2013 Total realized gain (loss) related to certain investments (1) $ (88 ) $ (18 ) $ (98 ) Realized gain (loss) on the mark-to-market on certain instruments (2) (45 ) (54 ) 48 Indexed annuity and IUL contracts net derivatives results: (3) Gross gain (loss) (77 ) (35 ) (39 ) Associated amortization of DAC, VOBA, DSI and DFEL 14 6 9 Variable annuity net derivatives results: (4) Gross gain (loss) 56 159 (60 ) Associated amortization of DAC, VOBA, DSI and DFEL (8 ) (12 ) 5 Realized gain (loss) on sale of subsidiaries/businesses (5) (3 ) (46 ) - Total realized gain (loss) $ (151 ) $ - $ (135 ) (1) See “Realized Gain (Loss) Related to Certain Investments” section in Note 5 . (2) Represents changes in the fair values of certain derivative investments (not including those associated with our variable and indexed annuity and IUL contracts net derivatives results), reinsurance related embedded derivatives and trading securities. (3) Represents the net difference between the change in the fair value of the S&P 500 call options that we hold and the change in the fair value of the embedded derivative liabilities of our indexed annuity and IUL contracts along with changes in the fair value of embedded derivative liabilities related to index call options we may purchase in the future to hedge contract holder index allocations applicable to future reset periods for our indexed annuity products. (4) Includes the net difference in the change in embedded derivative reserves of our GLB riders and the change in the fair value of the derivative instruments we own to hedge the change in embedded derivative reserves on our GLB riders and the benefit ratio unlocking on our GDB riders, including the cost of purchasing the hedging instruments . (5) See “LFM” in Note 3 . |
Commissions and Other Expenses
Commissions and Other Expenses | 12 Months Ended |
Dec. 31, 2015 | |
Commissions And Other Expenses [Abstract] | |
Commissions and Other Expenses | 16. Commissions and Other Expenses Details underlying commissions and other expenses (in millions) were as follows: For the Years Ended December 31, 2015 2014 2013 Commissions $ 2,071 $ 2,092 $ 1,962 General and administrative expenses 1,701 1,640 1,630 Expenses associated with reserve financing and unrelated LOCs 73 68 64 DAC and VOBA deferrals and interest, net of amortization (226 ) (432 ) (640 ) Broker-dealer expenses 432 408 387 Specifically identifiable intangible asset amortization 4 4 4 Media expenses 29 60 62 Taxes, licenses and fees 234 239 232 Total $ 4,318 $ 4,079 $ 3,701 |
Retirement and Deferred Compens
Retirement and Deferred Compensation Plans | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Retirement and Deferred Compensation Plans | 17. Retirement and Deferred Compensation Plans Defined Benefit Pension and Other Postretirement Benefit Plans We maintain U.S. defined benefit pension plans in which many of our U.S. employees and agents are participants, and a U.K. plan we retained after the sale of the Lincoln UK business. Our defined benefit pension plans are closed to new entrants and existing participants do not accrue any additional benefits. We comply with the minimum funding requirements in both the U.S. and the U . K. In accordance with such practice, we were required to contribute $11 million and $6 million for the years ended December 31, 2015 and 2014, respectively. We elected to contribute an additional $25 million during December 2015. We do not expect to be required to make any contributions to these pension plans in 2016. We sponsor other postretirement benefit plans that provide health care and life insurance to certain retired employees and agents. Total net periodic cost (recovery) for these plans was $( 6 ) million, $(4) million and $(1) million during 2015, 2014 and 2013, respectively. In 2016, we expect to make benefit payments of approximately $132 million for these plans. Information (in millions) with respect to these plans was as follows: As of or For the Years Ended December 31, 2015 2014 2015 2014 Other Postretirement Pension Plans Benefit Plans Fair value of plan assets $ 1,434 $ 1,522 $ 52 $ 48 Projected benefit obligation 1,607 1,708 97 103 Funded status of plan $ (173 ) $ (186 ) $ (45 ) $ (55 ) Amounts Recognized on the Consolidated Balance Sheets Other assets $ 28 $ 34 $ 2 $ 1 Other liabilities (201 ) (220 ) (47 ) (56 ) Net amount recognized $ (173 ) $ (186 ) $ (45 ) $ (55 ) Weighted-Average Assumptions Benefit obligations: Weighted-average discount rate 4.29% 3.88% 4.50% 4.00% Net periodic benefit cost: Weighted-average discount rate 3.88% 4.64% 4.00% 4.50% Expected return on plan assets 6.87% 6.90% 6.50% 6.50% The discount rate was determined based on a corporate yield curve as of December 31, 2015, and projected benefit obligation cash flows. The expected return on plan assets was determined based on historical and expected future returns of the various asset categories, using the plans’ target plan allocation. We reevaluate these assumptions each plan year. In October 2014, the Society of Actuaries published updated mortality tables that were incorporated into our assumptions, resulting in an increase in our pension plans’ benefit obligation of $55 million, pre-tax. The following summarizes our fair value measurements of our benefit plans’ assets (in millions) on a recurring basis by asset category : As of December 31, 2015 2014 Fixed maturity securities: Corporate bonds $ 355 $ 454 U.S. government bonds 207 161 Foreign government bonds 145 166 State and municipal bonds 32 33 Common and preferred stock 542 554 Cash and invested cash 151 152 Other investments 54 50 Total $ 1,486 $ 1,570 See “Fair Value Measurement” in Note 1 for discussion on how we categorize our pension plans’ assets into the three-level fair value hierarchy. See “Financial Instruments Carried at Fair Value” in Note 2 0 for a summary of our fair value measurement of our pension plans’ assets by the three-level fair value hierarchy. Defined Contribution Plans We sponsor tax-qualified defined contribution plans for eligible employees and agents. We administer these plans in accordance with the plan documents and various limitations under section 401(a) of the Internal Revenue Code of 1986. For the years ended December 31, 2015, 2014 and 2013, expenses for these plans were $ 82 million, $78 million and $72 million, respectively. Deferred Compensation Plans We sponsor non-qualified, unfunded, deferred compensation plans for certain current and former employees, agents and non-employee directors. The results of certain notional investment options within some of the plans are hedged by total return swaps. Our expenses increase or decrease in direct proportion to the change in market value of the participants’ investment options. Participants of certain plans are able to select our stock as an investment option; however, it is not hedged by the total return swaps and is a primary source of expense volatility related to these plans. For further discussion of total return swaps related to our deferred compensation plans, see Note 6. For the years ended December 31, 2015, 2014 and 2013, expenses for these plans were $ 10 million, $23 million and $38 million. I nformation (in millions) with respect to these plans was as follows : As of December 31, 2015 2014 Total liabilities (1) $ 483 $ 495 Investments dedicated to fund liabilities (2) 151 160 (1) Reported in other liabilities on our Consolidated Balance Sheets. (2) Reported in other assets on our Consolidated Balance Sheets. |
Stock-Based Incentive Compensat
Stock-Based Incentive Compensation Plans | 12 Months Ended |
Dec. 31, 2015 | |
Stock-Based Incentive Compensation Plans [Abstract] | |
Stock based incentive compensation plans | 1 8 . Stock-Based Incentive Compensation Plans LNC Stock-Based Incentive Plans We sponsor three stock-based incentive plans for our employees and directors and for the employees and agents of our subsidiaries that provide for the issuance of stock options, performance shares (performance-vested shares as opposed to service-vested shares), stock appreciation rights (“SARs”) and restricted stock units (“RSUs”) among other types of awards . We issue new shares to satisfy option exercises and vested performance shares and RSUs . Total compensation expense (in millions) by award type for all of our stock-based incentive plans was as follows: For the Years Ended December 31, 2015 2014 2013 Stock options $ 7 $ 9 $ 9 Performance shares 12 12 10 SARs - 2 5 RSUs 22 15 16 Total $ 41 $ 38 $ 40 Recognized tax benefit $ 14 $ 13 $ 14 Total unrecognized compensation expense (in millions) and expected weighted-average life (in years) by award type for all of our stock-based incentive plans was as follows: For the Years Ended December 31, 2015 2014 2013 Weighted- Weighted- Weighted- Average Average Average Expense Period Expense Period Expense Period Stock options $ 8 1.4 $ 8 1.5 $ 9 1.9 Performance shares 11 1.0 9 1.5 9 1.5 SARs 1 3.0 3 3.2 3 3.4 RSUs 24 1.0 21 1.0 18 1.2 Total unrecognized stock-based incentive compensation expense $ 44 $ 41 $ 39 In the first quarter of 201 5 , a performance period from 201 5 -201 7 was approved for our executive officers by the Compensation Committee. The award for executive officers participating in this performance period consisted of LNC RSUs representing approximately 41 %, LNC stock options representing approximately 24 % and LNC performance shares representing approximately 35 % of the total award. LNC RSUs granted for this period cliff-vest on the third anniversary of the grant date , based solely on a service condition. LNC stock options granted for this performance period have a maximum contractual term of ten years and vest ratably over the three -year period, based solely on a service condition. Depending on the performance results for this period, the ultimate payout of performance shares could range from zero t o 200 % of the target award. For the 2015-2017 performance period , a total of 481,900 LNC RSUs, 502,664 LNC stock options and 161,255 LNC performance shares were granted. In the first quarter of 201 4 , a performance period from 201 4 -201 6 was approved for our executive officers by the Compensation Committee. The award for executive officers participating in this performance period consisted of LNC RSUs representing approximately 37% , LNC stock options representing approximately 25% and LNC performance shares representing approximately 38% of the total award. LNC RSUs granted for this period cliff-vest on the third anniversary of the grant date , based solely on a service condition. LNC stock options granted for this performance period have a maximum contractual term of ten years and vest ratably over the three -year period, based solely on a service condition. Depending on the performance results for this period, the ultimate payout of performance shares could range from zero t o 200% of the target award. For the 2014-2016 performance period , a total of 462,231 LNC RSUs, 490,852 LNC stock options and 182,149 LNC performance shares were granted. In the first quarter of 2013, a performance period from 2013-2015 was approved for our executive officers by the Compensation Committee. The award for executive officers participating in this performance period consisted of LNC RSUs representing approximately 29% , LNC stock options representing approximately 35% and LNC performance shares representing approximately 36% of the total award. LNC RSUs granted for this period cliff-vest on the third anniversary of the grant date , based solely on a service condition. LNC stock options granted for this performance period have a maximum contractual term of ten years and vest ratably over the three -year period, based solely on a service condition. Depending on the performance results for this period, the ultimate payout of performance shares could range from zero to 200% of the target award. For the 2013-2015 performance period , a total of 583,404 LNC RSUs, 1, 011,365 LNC stock options and 260,114 LNC performance shares were granted. The option price assumptions used for our stock option awards were as follows: For the Years Ended December 31, 2015 2014 2013 Weighted-average fair value per option granted $ 13.00 $ 12.95 $ 7.39 Assumptions: Dividend yield 1.9% 2.2% 2.4% Expected volatility 28.0% 33.2% 34.1% Risk-free interest rate 1.4 - 1.7 % 0.9 - 1.8 % 0.6 - 0.9 % Expected life (in years) 5.5 5.4 5.6 The fair value of options is determined using a Black-Scholes options valuation model with the assumptions disclosed in the table above. The dividend yield is based on the expected dividend rate during the expected life of the option. Expected volatility is based on the implied volatility of exchange-traded securities and the historical volatility of the LNC stock price. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of the grant. The expected life of the options granted represents the weighted-average period of time from the grant date to the date of exercise, expiration or cancellation based upon historical behavior. Information with respect to our incentive plans involving stock options with performance conditions (aggregate intrinsic value shown in millions) was as follows: Weighted- Weighted- Average Average Remaining Aggregate Exercise Contractual Intrinsic Shares Price Term Value Outstanding as of December 31, 2014 1,071,747 $ 47.93 Granted – original 90,239 57.65 Exercised (includes shares tendered) (131,121 ) 39.60 Forfeited or expired (22,785 ) 40.46 Outstanding as of December 31, 2015 1,008,080 $ 50.05 2.28 $ 3 Vested or expected to vest as of December 31, 2015 (1) 952,889 $ 49.96 2.21 $ 3 Exercisable as of December 31, 2015 897,697 $ 49.86 2.13 $ 2 (1) Includes estimated forfeitures. The total fair value of options with performance conditions vested during each of the years ended December 31, 2015 , 2014 and 2013 , was $1 million. The total intrinsic value of options exercised during the years ended December 31, 2015 , 2014 and 2013 , was $2 million , $2 million and $1 million , respectively. Information with respect to our incentive plans involving stock options with service conditions (aggregate intrinsic value shown in millions) was as follows: Weighted- Weighted- Average Average Remaining Aggregate Exercise Contractual Intrinsic Shares Price Term Value Outstanding as of December 31, 2014 3,923,693 $ 38.65 Granted – original 502,664 58.25 Exercised (includes shares tendered) (1,249,442 ) 39.05 Forfeited or expired (152,567 ) 48.76 Outstanding as of December 31, 2015 3,024,348 $ 41.23 6.14 $ 38 Vested or expected to vest as of December 31, 2015 (1) 2,880,077 $ 40.97 5.99 $ 36 Exercisable as of December 31, 2015 2,017,776 $ 37.65 5.04 $ 32 (1) Includes estimated forfeitures. The total fair value of options with service conditions vested during the years ended December 31, 2015 , 2014 and 2013 , was $7 million, $7 million and $6 million, respectively. The total intrinsic value of options exercised during the years ended December 31, 2015 , 2014 and 2013 , was $25 million , $18 million and $6 million , respectively. Information with respect to our performance shares was as follows: Weighted- Average Grant-Date Shares Fair Value Nonvested as of December 31, 2014 702,426 $ 37.36 Granted 161,255 68.35 Vested (291,455 ) 29.69 Forfeited (34,339 ) 49.05 Nonvested as of December 31, 2015 537,887 $ 49.52 SARs Under our incentive compensation plan, we issue SARs to certain planners and advisors who have full-time contracts with us. The SARs under this plan are rights on our stock that are cash settled and become exercisable in increments of 25% over the four -year period following the SARs grant date. SARs are granted with an exercise price equal to the fair market value of our stock at the date of grant and, unless cancelled earlier due to certain terminations of employment, expire five years from the date of grant. Generally, such SARs are transferable only upon death. We recognize compensation expense for SARs based on the fair value method using the Black-Scholes option-pricing model. Compensation expense and the related liability are recognized on a straight-line basis over the vesting period of the SARs. The SARs liability is marked-to-market through net income, which causes volatility in net income (loss) as a result of changes in the market value of our stock and reported within commissions and other expenses on our Consolidated Statements of Comprehensive Income (Loss). The SARs liability as of December 31, 2015 and 2014 , was $3 million and $5 million, respectively, and reported within other liabilities on our Consolidated Balance Sheets. The option price assumptions used for our SARs were as follows: For the Years Ended December 31, 2015 2014 2013 Weighted-average fair value per SAR granted $ 14.22 $ 13.64 $ 7.47 Assumptions: Dividend yield 1.6% 1.5% 2.2% Expected volatility 29.8% 32.7% 30.5% Risk-free interest rate 1.8% 1.7% 1.0% Expected life (in years) 5.0 5.0 5.0 The assumptions above are the same as those discussed for options above, except the dividend yield is based on the current dividend rate at the date of grant, expected volatility is based on the implied volatility of exchange-traded securities and the expected life represents the contractual term. Information with respect to our SARs plan (aggregate intrinsic value shown in millions) was as follows: Weighted- Weighted- Average Average Remaining Aggregate Exercise Contractual Intrinsic Shares Price Term Value Outstanding as of December 31, 2014 307,959 $ 34.28 Granted – original 48,451 57.64 Exercised (includes shares tendered) (85,713 ) 30.18 Forfeited or expired (5,826 ) 38.92 Outstanding as of December 31, 2015 264,871 $ 39.61 2.33 $ 3 Vested or expected to vest as of December 31, 2015 (1) 248,111 $ 39.70 2.32 $ 3 Exercisable as of December 31, 2015 155,909 $ 35.01 1.79 $ 2 (1) Includes estimated forfeitures. The payment for SARs exercised during the years ended December 31, 2015 , 2014 a nd 2013 , was $2 million, $2 million and $1 million , respectively . RSUs We award RSUs under the incentive compensation plan, generally subject to a three-year vesting period. I nformation with respect to our RSUs was as follows: Weighted- Average Grant-Date Shares Fair Value Outstanding as of December 31, 2014 1,527,675 $ 34.30 Granted 481,900 58.08 Vested (613,391 ) 26.33 Forfeited (96,185 ) 43.32 Outstanding as of December 31, 2015 1,299,999 $ 46.21 |
Statutory Information and Restr
Statutory Information and Restrictions | 12 Months Ended |
Dec. 31, 2015 | |
Statutory Information and Restrictions Disclosure [Abstract] | |
Statutory Information and Restrictions | 19. Statutory Information and Restrictions The Company’s domestic life insurance subsidiaries prepare financial statements in accordance with statutory accounting principles (“SAP”) prescribed or permitted by the insurance departments of their states of domicile, which may vary materially from GAAP. Prescribed SAP includes the Accounting Practices and Procedures Manual of the National Association of Insurance Commissioners (“NAIC”) as well as state laws, regulations and administrative rules. Permitted SAP encompasses all accounting practices not so prescribed. The principal differences between statutory financial statements and financial statements prepared in accordance with GAAP are that statutory financial statements do not reflect DAC, some bond portfolios may be carried at amortized cost, assets and liabilities are presented net of reinsurance, contract holder liabilities are generally valued using more conservative assumptions and certain assets are non-admitted. Our insurance subsidiaries are subject to the applicable laws and regulations of their respective states. Changes in these laws and regulations could change capital levels or capital requirements for our insurance subsidiaries. Statutory capital and surplus, net gain (loss) from operations, after-tax, net income (loss) and dividends to the LNC holding company amounts (in millions) below consist of all or a combination of the following entities: LNL, First Penn-Pacific Life Insurance Company (“FPP”), Lincoln Reinsurance Company of South Carolina, Lincoln Life & Annuity Co mpany of New York (“LLANY”) , Lincoln Reinsurance Company of Vermont I, Lincoln Reinsurance Company of Vermont II, Lincoln Reinsurance Company of Vermont III, Lincoln Reinsurance Company of Vermon t IV, Lincoln Reinsurance Company of Vermont V and Lincoln Reinsurance Company of Vermont VI . As of December 31, 2015 2014 U.S. capital and surplus $ 7,815 $ 8,200 For the Years Ended December 31, 2015 2014 2013 U.S. net gain (loss) from operations, after-tax $ 635 $ 1,225 $ 494 U.S. net income (loss) 838 1,456 561 U.S. dividends to LNC holding company 1,175 785 725 Comparison of 2015 to 2014 Statutory net income (loss) de crease d due primarily to the recapture in 2014 of certain traditional and interest sensitive business under several yearly renewable term reinsurance treaties that were originally ceded to a reinsurer , a change in estimate o n reserves for certain products in 2014 and a decrease in favorable tax items . Comparison of 2014 to 2013 Statutory net income (loss) increased due primarily to the recapture of certain traditional and interest sensitive business under several yearly renewable term reinsurance treaties that were originally ceded to a reinsurer , a change in estimate o n reserves for certain products and a lower effective tax rate due to the use of tax credit carryforwards. The states of domicile of the Company’s insurance subsidiaries have adopted certain prescribed accounting practices that differ from those found in NAIC SAP. These prescribed practices are the use of continuous Commissioners Annuity Reserve Valuation Method (“CARVM”) in the calculation of reserves as prescribed by the state of New York, the calculation of reserves on universal life policies based on the Indiana universal life method as prescribed by the state of Indiana for policies issued before January 1, 2006, and the use of a more conservative valuation interest rate on certain annuities prescribed by the states of Indiana and New York. The Vermont insurance subsidiaries also have an accounting practice permitted by the state of Vermont that differs from that found in NAIC SAP. Specifically, the permitted practice involves accounting for the lesser of the face amount of all amounts outstanding under an LOC and the value of the Valuation of Life Insurance Policies Model Regulation (“XXX”) additional statutory reserves as an admitted asset and a form of surplus as of December 31, 2015 and 2014. The favorable (unfavorable) effects on statutory surplus compared to NAIC statutory surplus from the use of these prescribed and permitted practices (in millions) were as follows: As of December 31, 2015 2014 Calculation of reserves using the Indiana universal life method $ 109 $ 140 Calculation of reserves using continuous CARVM (1 ) (1 ) Conservative valuation rate on certain annuities (43 ) (39 ) Lesser of LOC and XXX additional reserve as surplus 2,835 2,751 During the third quarter of 2013, the New York State Department of Financial Services (“NYDFS”) announced that it would not recognize the NAIC revisions to Actuarial Guideline 38 in applying the New York law governing the reserves to be held for UL and VUL products containing secondary guarantees. The change, which was effective as of December 31, 2013, impacts our New York-domici led insurance subsidiary, LLANY. LLANY discontinued the sale of these products in early 2013 , but the change affects those policies sold prior to that time . We began phasing in the increase in reserves over five years beginning in 2013. As of December 31, 2015, we have increased reserves by $270 million. The additional increase in reserves over the next two years is subject to ongoing discussions with the NYDFS. However, we do not expect the amount for each of the remaining years to exceed $90 million per year. The NAIC has adopted RBC requirements for life insurance companies to evaluate the adequacy of statutory capital and surplus in relation to investment and insurance risks. The requirements provide a means of measuring the minimum amount of statutory surplus appropriate for an insurance company to support its overall business operations based on its size and risk profile. Under RBC requirements, regulatory compliance is determined by the ratio of a company’s total adjusted capital, as defined by the NAIC, to its company action level of RBC (known as the “RBC ratio”), also as defined by the NAIC. The company action level may be triggered if the RBC ratio is between 75% and 100% , which would require the insurer to submit a plan to the regulator detailing corrective action it proposes to undertake. As of December 31, 201 5 , the combined RBC ratio of LNL, LLANY and FPP reported to their respective states of domicile and the NAIC was nearly five times the aforementioned company action level. Our insurance subsidiaries are subject to certain insurance department regulatory restrictions as to the transfer of funds and payment of dividends to the holding company. Under Indiana laws and regulations, our Indiana insurance subsidiaries, including our primary insurance subsidiary, LNL, may pay dividends to LNC without prior approval of the Indiana Insurance Commissioner (the “Commissioner”), only from unassigned surplus and must receive prior approval of the Commissioner to pay a dividend if such dividend, along with all other dividends paid within the preceding 12 consecutive months, would exceed the statutory limitation. The current statutory limitation is the greater of 10% of the insurer’s contract holders’ surplus, as shown on its last annual statement on file with the Commissioner or the insurer’s statutory net gain from operations for the previous 12 months, but in no event to exceed statutory unassigned surplus. Indiana law gives the Commissioner broad discretion to disapprove requests for dividends in excess of these limits. LNL’s subsidiary, LLANY, a New York domiciled insurance company, has similar restrictions, except that in New York it is the lesser of 10% of surplus to contract holders as of the immediately preceding calendar year or net gain from operations for the immediately preceding calendar year, not including realized capital gains. We expect our domestic insurance subsidiaries could pay dividends of approximately $9 00 m illion in 2016 without prior approval from the respective state commissioner. All payments of principal and interest on surplus notes between LNC and our insurance subsidiaries must be approved by the respective Commissioner of Insurance. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Of Financial Instruments [Abstract] | |
Fair Value of Financial Instruments | 20. Fair Value of Financial Instruments The carrying values and estimated fair values of our financial instruments (in millions) were as follows: As of December 31, 2015 As of December 31, 2014 Carrying Fair Carrying Fair Value Value Value Value Assets AFS securities: Fixed maturity securities $ 84,964 $ 84,964 $ 86,240 $ 86,240 VIEs’ fixed maturity securities 598 598 598 598 Equity securities 237 237 231 231 Trading securities 1,854 1,854 2,065 2,065 Mortgage loans on real estate 8,678 8,936 7,574 8,038 Derivative investments (1) 1,537 1,537 1,860 1,860 Other investments 1,778 1,778 1,709 1,709 Cash and invested cash 3,146 3,146 3,919 3,919 Other assets – reinsurance recoverable 268 268 154 154 Separate account assets 123,619 123,619 125,265 125,265 Liabilities Future contract benefits – indexed annuity and IUL contracts embedded derivatives (1,100 ) (1,100 ) (1,170 ) (1,170 ) Other contract holder funds: Remaining guaranteed interest and similar contracts (687 ) (687 ) (699 ) (699 ) Account values of certain investment contracts (30,392 ) (34,618 ) (29,156 ) (33,079 ) Short-term debt (2) - - (250 ) (253 ) Long-term debt (5,582 ) (5,505 ) (5,270 ) (5,707 ) Reinsurance related embedded derivatives (87 ) (87 ) (150 ) (150 ) VIEs’ liabilities – derivative instruments (4 ) (4 ) (13 ) (13 ) Other liabilities: Credit default swaps (9 ) (9 ) (3 ) (3 ) Derivative liabilities (1) (69 ) (69 ) (77 ) (77 ) GLB reserves embedded derivatives (3) (953 ) (953 ) (174 ) (174 ) Benefit Plans’ Assets (4) 1,486 1,486 1,570 1,570 (1) We have master netting agreements with each of our derivative counterparties, which allow for the netting of our derivative asset and liability positions by counterparty. (2) The difference between the carrying value and fair value of short-term debt as of December 31, 2014, related to current maturities of long-term debt. (3) Portions of our GLB reserves embedded derivatives are ceded to third-party reinsurance counterparties. Refer to Note 6 for additional detail . (4) Included in the funded statuses of the benefit plans, which is reported in other liabilities on our Consolidated Balance Sheets. Refer to Note 17 for information regarding our benefit plans. Valuation Methodologies and Associated Inputs for Financial Instruments Not Carried at Fair Value The following discussion outlines the methodologies and assumptions used to determine the fair value of our financial instruments not carried at fair value on our Consolidated Balance Sheets. Considerable judgment is required to develop these assumptions used to measure fair value. Accordingly, the estimates shown are not necessarily indicative of the amounts that would be realized in a one-time, current market exchange of all of our financial instruments. Mortgage Loans on Real Estate The fair value of mortgage loans on real estate is established using a discounted cash flow method based on credit rating, maturity and future income. The ratings for mortgages in good standing are based on property type, location, market conditions, occupancy, debt-service coverage, loan-to-value, quality of tenancy, borrower and payment record. The fair value for impaired mortgage loans is based on the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s market price or the fair value of the collateral if the loan is collateral dependent. The inputs used to measure the fair value of our mortgage loans on real estate are classified as Level 2 within the fair value hierarchy. Other Investments The carrying value of our assets classified as other investments approximates fair value. Other investments includes primarily LPs and other privately held investments that are accounted for using the equity method of accounting and the carrying value is based on our proportional share of the net assets of the LPs. The inputs used to measure the fair value of our LPs and other privately held investments are classified as Level 3 within the fair value hierarchy. Other investments also includes securities that are not LPs or other privately held investments and the inputs used to measure the fair value of these securities are classified as Level 1 within the fair value hierarchy. Other Contract Holder Funds Other contract holder funds include remaining guaranteed interest and similar contracts and account values of certain investment contracts. The fair value for the remaining guaranteed interest and similar contracts is estimated using discounted cash flow calculations as of the balance sheet date. These calculations are based on interest rates currently offered on similar contracts with maturities that are consistent with those remaining for the contracts being valued. As of December 31, 2015 and 2014 , the remaining guaranteed interest and similar contracts carrying value approximated fair value. The fair value of the account values of certain investment contracts is based on their approximate surrender value as of the balance sheet date. The inputs used to measure the fair value of our other contract holder funds are classified as Level 3 within the fair value hierarchy. Short-Term and Long-Term Debt The fair value of short-term and long-term debt is based on quoted market prices. The inputs used to measure the fair value of our short-term and long-term debt are classified as Level 2 within the fair value hierarchy. Financial Instruments Carried at Fair Value We did not have any assets or liabilities measured at fair value on a nonrecurring basis as of December 31, 2015 or 2014 , and we noted no changes in our valuation methodologies between these periods. The following summarizes our financial instruments carried at fair value (in millions) on a recurring basis by the fair value hierarchy levels described above: As of December 31, 2015 Quoted Prices in Active Markets for Significant Significant Identical Observable Unobservable Total Assets Inputs Inputs Fair (Level 1) (Level 2) (Level 3) Value Assets Investments: Fixed maturity AFS securities: Corporate bonds $ 60 $ 70,878 $ 1,993 $ 72,931 ABS - 1,056 45 1,101 U.S. government bonds 412 17 - 429 Foreign government bonds - 413 111 524 RMBS - 3,727 1 3,728 CMBS - 366 10 376 CLOs - 38 551 589 State and municipal bonds - 4,480 - 4,480 Hybrid and redeemable preferred securities 48 664 94 806 VIEs’ fixed maturity securities - 598 - 598 Equity AFS securities 8 65 164 237 Trading securities 160 1,621 73 1,854 Other investments 148 - - 148 Derivative investments (1) - 1,459 853 2,312 Cash and invested cash - 3,146 - 3,146 Other assets – reinsurance recoverable - - 268 268 Separate account assets 1,053 122,566 - 123,619 Total assets $ 1,889 $ 211,094 $ 4,163 $ 217,146 Liabilities Future contract benefits – indexed annuity and IUL contracts embedded derivatives $ - $ - $ (1,100 ) $ (1,100 ) Long-term debt - (1,203 ) - (1,203 ) Reinsurance related embedded derivatives - (87 ) - (87 ) VIEs’ liabilities – derivative instruments - - (4 ) (4 ) Other liabilities: Credit default swaps - - (9 ) (9 ) Derivative liabilities (1) - (546 ) (298 ) (844 ) GLB reserves embedded derivatives - - (953 ) (953 ) Total liabilities $ - $ (1,836 ) $ (2,364 ) $ (4,200 ) Benefit Plans’ Assets $ 156 $ 1,330 $ - $ 1,486 As of December 31, 2014 Quoted Prices in Active Markets for Significant Significant Identical Observable Unobservable Total Assets Inputs Inputs Fair (Level 1) (Level 2) (Level 3) Value Assets Investments: Fixed maturity AFS securities: Corporate bonds $ 63 $ 71,400 $ 1,953 $ 73,416 ABS - 1,097 33 1,130 U.S. government bonds 399 36 - 435 Foreign government bonds - 432 109 541 RMBS - 4,225 1 4,226 CMBS - 555 15 570 CLOs - 7 368 375 State and municipal bonds - 4,593 - 4,593 Hybrid and redeemable preferred securities 45 854 55 954 VIEs’ fixed maturity securities - 598 - 598 Equity AFS securities 7 67 157 231 Trading securities - 1,992 73 2,065 Other investments 150 - - 150 Derivative investments (1) - 1,356 1,231 2,587 Cash and invested cash - 3,919 - 3,919 Other assets – reinsurance recoverable - - 154 154 Separate account assets 1,539 123,726 - 125,265 Total assets $ 2,203 $ 214,857 $ 4,149 $ 221,209 Liabilities Future contract benefits – indexed annuity and IUL contracts embedded derivatives $ - $ - $ (1,170 ) $ (1,170 ) Long-term debt - (1,203 ) - (1,203 ) Reinsurance related embedded derivatives - (150 ) - (150 ) VIEs’ liabilities – derivative instruments - - (13 ) (13 ) Other liabilities: Credit default swaps - - (3 ) (3 ) Derivative liabilities (1) - (562 ) (242 ) (804 ) GLB reserves embedded derivatives - - (174 ) (174 ) Total liabilities $ - $ (1,915 ) $ (1,602 ) $ (3,517 ) Benefit Plans’ Assets $ 116 $ 1,454 $ - $ 1,570 (1) Derivative investment assets and liabilities presented within the fair value hierarchy are presented on a gross basis by derivative type and not on a master netting basis by counterparty. The following summarizes changes to our financial instruments carried at fair value (in millions) and classified within Level 3 of the fair value hierarchy. This summary excludes any effect of amortization of DAC, VOBA, DSI and DFEL. The gains and losses below may include changes in fair value due in part to observable inputs that are a component of the valuation methodology. For the Year Ended December 31, 2015 Purchases, Gains Issuances, Transfers Items (Losses) Sales, Into or Included in Maturities, Out Beginning in OCI Settlements, of Ending Fair Net and Calls, Level 3, Fair Value Income Other (1) Net Net (2) Value Investments: (4) Fixed maturity AFS securities: Corporate bonds $ 1,953 $ 4 $ (140 ) $ 118 $ 58 $ 1,993 ABS 33 - - 12 - 45 Foreign government bonds 109 - 2 - - 111 RMBS 1 4 - (4 ) - 1 CMBS 15 2 8 (15 ) - 10 CLOs 368 - 1 194 (12 ) 551 Hybrid and redeemable preferred securities 55 (1 ) (3 ) - 43 94 Equity AFS securities 157 2 3 3 (1 ) 164 Trading securities 73 3 (3 ) - - 73 Derivative investments 989 (90 ) (41 ) (303 ) - 555 Other assets – reinsurance recoverable (5) 154 114 - - - 268 Future contract benefits – indexed annuity and universal life contracts embedded derivatives (5) (1,170 ) (57 ) - 127 - (1,100 ) VIEs’ liabilities – derivative instruments (6) (13 ) 9 - - - (4 ) Other liabilities: Credit default swaps (7) (3 ) (6 ) - - - (9 ) GLB reserves embedded derivatives (5) (174 ) (779 ) - - - (953 ) Total, net $ 2,547 $ (795 ) $ (173 ) $ 132 $ 88 $ 1,799 For the Year Ended December 31, 2014 Purchases, Gains Issuances, Transfers Items (Losses) Sales, Into or Included in Maturities, Out Beginning in OCI Settlements, of Ending Fair Net and Calls, Level 3, Fair Value Income Other (1) Net Net (2)(3) Value Investments: (4) Fixed maturity AFS securities: Corporate bonds $ 1,701 $ 9 $ 27 $ 197 $ 19 $ 1,953 ABS 10 - 1 - 22 33 Foreign government bonds 79 - 5 - 25 109 RMBS 1 - - - - 1 CMBS 20 - 2 (13 ) 6 15 CLOs 179 (3 ) 7 136 49 368 State and municipal bonds 28 - 1 - (29 ) - Hybrid and redeemable preferred securities 66 - (1 ) (5 ) (5 ) 55 Equity AFS securities 161 4 (3 ) (5 ) - 157 Trading securities 52 4 8 10 (1 ) 73 Derivative investments 1,266 72 356 (279 ) (426 ) 989 Other assets – reinsurance recoverable: (5) 27 127 - - - 154 Future contract benefits: (5) Indexed annuity and IUL contracts embedded derivatives (1,048 ) (210 ) - 88 - (1,170 ) GLB reserves embedded derivatives 1,244 - - - (1,244 ) - VIEs’ liabilities – derivative instruments (6) (27 ) 14 - - - (13 ) Other liabilities: Credit default swaps (7) (2 ) (1 ) - - - (3 ) GLB reserves embedded derivatives (5) (27 ) (1,391 ) - - 1,244 (174 ) Total, net $ 3,730 $ (1,375 ) $ 403 $ 129 $ (340 ) $ 2,547 For the Year Ended December 31, 2013 Purchases, Gains Issuances, Transfers Items (Losses) Sales, Into or Included in Maturities, Out Beginning in OCI Settlements, of Ending Fair Net and Calls, Level 3, Fair Value Income Other (1) Net Net (2) Value Investments: (4) Fixed maturity AFS securities: Corporate bonds $ 1,491 $ (18 ) $ (2 ) $ 316 $ (86 ) $ 1,701 ABS 14 - 1 29 (34 ) 10 U.S. government bonds 1 - - (1 ) - - Foreign government bonds 46 - - 33 - 79 RMBS 3 - - (2 ) - 1 CMBS 27 1 6 (6 ) (8 ) 20 CLOs 154 (1 ) 4 50 (28 ) 179 State and municipal bonds 32 - (4 ) - - 28 Hybrid and redeemable preferred securities 118 - 13 (35 ) (30 ) 66 Equity AFS securities 87 (1 ) 2 73 - 161 Trading securities 56 3 (7 ) (6 ) 6 52 Derivative investments 2,026 (681 ) 96 (175 ) - 1,266 Future contract benefits: (5) Indexed annuity and IUL contracts embedded derivatives (732 ) (356 ) - 40 - (1,048 ) GLB reserves embedded derivatives (909 ) 2,153 - - - 1,244 VIEs’ liabilities – derivative instruments (6) (128 ) 101 - - - (27 ) Other liabilities – credit default swaps (7) (11 ) 9 - - - (2 ) Total, net $ 2,275 $ 1,210 $ 109 $ 316 $ (180 ) $ 3,730 (1) The changes in fair value of the interest rate swaps are offset by an adjustment to derivative investments (see Note 6 ). (2) Transfers into or out of Level 3 for AFS and trading securities are displayed at amortized cost as of the beginning-of-year. For AFS and trading securities, the difference between beginning-of-year amortized cost and beginning-of-year fair value was included in OCI and earnings, respectively, in prior years. (3) Transfers into or out of Level 3 for GLB reserves embedded derivatives between future contract benefits, other assets and other liabilities on our Consolidated Balance Sheets. (4) Amortization and accretion of premiums and discounts are included in net investment income on our Consolidated Statements of Comprehensive Income (Loss). Gains (losses) from sales, maturities, settlements and calls and OTTI are included in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). (5) Gains (losses) from sales, maturities, settlements and calls are included in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). (6) Gains (losses) from sales, maturities, settlements and calls are included in net investment income on our Consolidated Statements of Comprehensive Income (Loss). (7) The changes in fair value of the credit default swaps and contingency forwards are included in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). The following provides the components of the items included in issuances, sales, maturities, settlements and calls, net, excluding any effect of amortization of DAC, VOBA, DSI and DFEL and changes in future contract benefits, (in millions) as reported above: For the Year Ended December 31, 2015 Issuances Sales Maturities Settlements Calls Total Investments: Fixed maturity AFS securities: Corporate bonds $ 359 $ (38 ) $ (44 ) $ (119 ) $ (40 ) $ 118 ABS 13 - - (1 ) - 12 RMBS - (4 ) - - - (4 ) CMBS - - - (14 ) (1 ) (15 ) CLOs 217 - - (23 ) - 194 Equity AFS securities 43 (40 ) - - - 3 Derivative investments 179 (162 ) (320 ) - - (303 ) Future contract benefits – indexed annuity and IUL contracts embedded derivatives (51 ) - - 178 - 127 Total, net $ 760 $ (244 ) $ (364 ) $ 21 $ (41 ) $ 132 For the Year Ended December 31, 2014 Issuances Sales Maturities Settlements Calls Total Investments: Fixed maturity AFS securities: Corporate bonds $ 600 $ (75 ) $ (115 ) $ (51 ) $ (162 ) $ 197 CMBS - - - (13 ) - (13 ) CLOs 187 - - (46 ) (5 ) 136 Hybrid and redeemable preferred securities - (5 ) - - - (5 ) Equity AFS securities - (5 ) - - - (5 ) Trading securities 14 - - (4 ) - 10 Derivative investments 160 (87 ) (352 ) - - (279 ) Future contract benefits – indexed annuity and IUL contracts embedded derivatives (69 ) - - 157 - 88 Total, net $ 892 $ (172 ) $ (467 ) $ 43 $ (167 ) $ 129 For the Year Ended December 31, 2013 Issuances Sales Maturities Settlements Calls Total Investments: Fixed maturity AFS securities: Corporate bonds $ 533 $ (51 ) $ (47 ) $ (49 ) $ (70 ) $ 316 ABS 30 - - (1 ) - 29 U.S. government bonds - - - (1 ) - (1 ) Foreign government bonds 50 - (17 ) - - 33 RMBS - - - (2 ) - (2 ) CMBS - - - (4 ) (2 ) (6 ) CLOs 74 - - (24 ) - 50 Hybrid and redeemable preferred securities - (35 ) - - - (35 ) Equity AFS securities 78 (5 ) - - - 73 Trading securities - (3 ) (1 ) (2 ) - (6 ) Derivative investments 152 (23 ) (304 ) - - (175 ) Future contract benefits – indexed annuity and IUL contracts embedded derivatives (68 ) - - 108 - 40 Total, net $ 849 $ (117 ) $ (369 ) $ 25 $ (72 ) $ 316 The following summarizes changes in unrealized gains (losses) included in net income, excluding any effect of amortization of DAC, VOBA, DSI and DFEL and changes in future contract benefits, related to financial instruments carried at fair value classified within Level 3 that we still held (in millions): For the Years Ended December 31, 2015 2014 2013 Derivative investments (1) $ (102 ) $ (15 ) $ (752 ) Embedded derivatives: (1) Indexed annuity and IUL contracts (84 ) (37 ) (44 ) GLB reserves (244 ) (678 ) 2,444 VIEs’ liabilities – derivative instruments (2) 9 14 101 Credit default swaps (1) (6 ) (1 ) 9 Total, net $ (427 ) $ (717 ) $ 1,758 (1) Included in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). (2) Included in net investment income on our Consolidated Statements of Comprehensive Income (Loss). The following provides the components of the transfers into and out of Level 3 (in millions) as reported above: For the Year Ended December 31, 2015 Transfers Transfers Into Out of Level 3 Level 3 Total Investments: Fixed maturity AFS securities: Corporate bonds $ 224 $ (166 ) $ 58 Foreign government bonds 4 (4 ) - CLOs 4 (16 ) (12 ) Hybrid and redeemable preferred securities 48 (5 ) 43 Equity AFS securities - (1 ) (1 ) Trading securities 4 (4 ) - Total, net $ 284 $ (196 ) $ 88 For the Year Ended December 31, 2014 Transfers Transfers Into Out of Level 3 Level 3 Total Investments: Fixed maturity AFS securities: Corporate bonds $ 475 $ (456 ) $ 19 ABS 26 (4 ) 22 Foreign government bonds 25 - 25 CMBS 6 - 6 CLOs 53 (4 ) 49 State and municipal bonds - (29 ) (29 ) Hybrid and redeemable preferred securities 17 (22 ) (5 ) Trading securities 10 (11 ) (1 ) Derivative investments - (426 ) (426 ) Future contract benefits – GLB reserves embedded derivatives - (1,244 ) (1,244 ) Other liabilities – GLB reserves embedded derivatives 1,244 - 1,244 Total, net $ 1,856 $ (2,196 ) $ (340 ) For the Year Ended December 31, 2013 Transfers Transfers Into Out of Level 3 Level 3 Total Investments: Fixed maturity AFS securities: Corporate bonds $ 373 $ (459 ) $ (86 ) ABS - (34 ) (34 ) CMBS - (8 ) (8 ) CLOs - (28 ) (28 ) Hybrid and redeemable preferred securities 20 (50 ) (30 ) Trading securities 8 (2 ) 6 Total, net $ 401 $ (581 ) $ (180 ) Transfers into and out of Level 3 are generally the result of observable market information on a security no longer being available or becoming available to our pricing vendors. For the years ended December 31, 2015 , 2014 and 2013 transfers in and out were attributable primarily to the securities’ observable market information no longer being available or becoming available. Transfers in and out for GLB reserves embedded derivatives represent reclassifications between future contract benefits and other assets or other liabilities. Transfers into and out of Levels 1 and 2 are generally the result of a change in the type of input used to measure the fair value of an asset or liability at the end of the reporting period. When quoted prices in active markets become available, transfers from Level 2 to Level 1 will result. When quoted prices in active markets become unavailable, but we are able to employ a valuation methodology using significant observable inputs, transfers from Level 1 to Level 2 will result. For the year ended December 31, 2015, the transfers from Level 2 to Level 1 of the fair value hierarchy were $ 172 million for our financial instruments carried at fair value which was attributable to quoted market prices becoming available. For the years ended December 31, 2014 and 2013 the transfers between Levels 1 and 2 of the fair value hierarchy were less than $ 1 million for our financial instruments carried at fair value. The following summarizes the fair value (in millions), valuation techniques and significant unobservable inputs of the Level 3 fair value measurements as of December 31, 2015 : Fair Valuation Significant Assumption or Value Technique Unobservable Inputs Input Ranges Assets Investments: Fixed maturity AFS and trading securities: Corporate bonds $ 1,314 Discounted cash flow Liquidity/duration adjustment (1) 0.1 % - 11.7 % ABS 25 Discounted cash flow Liquidity/duration adjustment (1) 3.3 % - 3.3 % Foreign government bonds 77 Discounted cash flow Liquidity/duration adjustment (1) 1.9 % - 4.4 % Hybrid and redeemable preferred securities 20 Discounted cash flow Liquidity/duration adjustment (1) 2.1 % - 2.1 % Equity AFS and trading securities 27 Discounted cash flow Liquidity/duration adjustment (1) 4.3 % - 8.8 % Other assets – reinsurance recoverable 268 Discounted cash flow Long-term lapse rate (2) 1 % - 30 % Utilization of guaranteed withdrawals (3) 90 % - 100 % Claims utilization factor (4) 60 % - 100 % Premiums utilization factor (4) 70 % - 120 % NPR (5) 0.02 % - 0.38 % Mortality rate (6) (8) Volatility (7) 1 % - 29 % Liabilities Future contract benefits – indexed annuity and IUL contracts embedded derivatives (1,100 ) Discounted cash flow Lapse rate (2) 1 % - 15 % Mortality rate (6) (8) Other liabilities – GLB reserves embedded derivatives (953 ) Discounted cash flow Long-term lapse rate (2) 1 % - 30 % Utilization of guaranteed withdrawals (3) 90 % - 100 % Claims utilization factor (4) 60 % - 100 % Premiums utilization factor (4) 70 % - 120 % NPR (5) 0.02 % - 0.38 % Mortality rate (6) (8) Volatility (7) 1 % - 29 % (1) The liquidity/duration adjustment input represents an estimated market participant composite of adjustments attributable to liquidity premiums, expected durations, structures and credit quality that would be applied to the market observable information of an investment. (2) The lapse rate input represents the estimated probability of a contract surrendering during a year, and thereby forgoing any future benefits. The range for indexed annuity and IUL contracts represents the lapse rates during the surrender charge period. (3) The utilization of guaranteed withdrawals input represents the estimated percentage of contract holders that utilize the guaranteed withdrawal feature. (4) The utilization factors are applied to the present value of claims or premiums, as appropriate, in the GLB reserve calculation to estimate the impact of inefficient withdrawal behavior, including taking less than or more than the maximum guaranteed withdrawal. (5) The NPR input represents the estimated additional credit spread that market participants would apply to the market observable discount rate when pricing a contract. (6) The mortality rate input represents the estimated probability of when an individual belonging to a particular group, categorized according to age or some other factor such as gender, will die. (7) The volatility input represents overall volatilities assumed for the underlying variable annuity funds, which include a mixture of equity and fixed-income assets. Fair value of the variable annuity GLB embedded derivatives would increase if higher volatilities were used for valuation. (8) The mortality rate is based on a combination of company and industry experience, adjusted for improvement factors. From the table above, we have excluded Level 3 fair value measurements obtained from independent, third-party pricing sources. We do not develop the significant inputs used to measure the fair value of these assets and liabilities, and the information regarding the significant inputs is not readily available to us. Independent broker-quoted fair values are non-binding quotes developed by market makers or broker-dealers obtained from third-party sources recognized as market participants. The fair value of a broker-quoted asset or liability is based solely on the receipt of an updated quote from a single market maker or a broker-dealer recognized as a market participant as we do not adjust broker quotes when used as the fair value measurement for an asset or liability. Significant increases or decreases in any of the quotes received from a third-party broker-dealer may result in a significantly higher or lower fair value measurement. Changes in any of the significant inputs presented in the table above may result in a significant change in the fair value measurement of the asset or liability as follows: · Investments – An increase in the liquidity/duration adjustment input would result in a decrease in the fair value measurement. · Indexed annuity and IUL contracts embedded derivatives – An increase in the lapse rate or mortality rate inputs would result in a decrease in the fair value measurement. · GLB reserves embedded derivatives – Assuming our GLB reserves embedded derivatives are in a liability position: an increase in our lapse rate, NPR or mortality rate inputs would result in a decrease in the fair value measurement; and an increase in the utilization of guarantee withdrawal or volatility inputs would result in an increase in the fair value measurement. For each category discussed above, the unobservable inputs are not inter-related; therefore, a directional change in one input will not affect the other inputs. As part of our ongoing valuation process, we assess the reasonableness of our valuation techniques or models and make adjustments as necessary. For more information, see “Summary of Significant Accounting Policies” above . |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2015 | |
Segment Information [Abstract] | |
Segment Information | 21 . Segment Information We provide products and services and report results through our Annuities, Retirement Plan Services, Life Insurance and Group Protection segments. We also have Other Operations, which includes the financial data for operations that are not directly related to the business segments. Our reporting segments reflect the manner by which our chief operating decision makers view and manage the business. The following is a brief description of these segments and Other Operations. The Annuities segment provides tax-deferred investment growth and lifetime income opportunities for its clients by offering fixed (including indexed) and variable annuities. The Retirement Plan Services segment provides employer-sponsored defined benefit and individual retirement accounts, as well as individual and group variable annuities, group fixed annuities and mutual-fund based programs in the retirement plan marketplace. The Life Insurance segment focuses in the creation and protection of wealth through life insurance products, including term insurance, a linked-benefit product (which is a UL policy linked with riders that provide for long-term care costs), IUL and both single and survivorship versions of UL and VUL, including corporate-owned UL and VUL insurance and bank-owned UL and VUL insurance products. The Group Protection segment offers principally group non-medical insurance products, including term life, universal life, disability, dental, vision, accident and critical illness insurance to the employer market place through various forms of contributory and non-contributory plans. Its products are marketed primarily through a national distribution system of regional group offices. These offices develop business through employee benefit brokers, third-party administrators and other employee benefit firms. Other Operations includes investments related to the excess capital in our insurance subsidiaries; investments in media properties (see Note 3 for more information) and other corporate investments; benefit plan net liability; the unamortized deferred gain on indemnity reinsurance related to the sale of reinsurance; the results of certain disability income business; our run-off institutional pension business, the majority of which was sold on a group annuity basis; and debt costs. Segment operating revenues and income (loss) from operations are internal measures used by our management and Board of Directors to evaluate and assess the results of our segments. Income (loss) from operations is GAAP net income excluding the after-tax effects of the following items, as applicable: · Realized gains and losses associated with the following (“excluded realized gain (loss)”): § Sales or disposals and impairments of securities ; § Changes in the fair value of derivatives, embedded derivatives within certain reinsurance arrangements and trading securities; § Changes in the fair value of the derivatives we own to hedge our GDB riders within our variable annuities; § Changes in the fair value of the embedded derivatives of our GLB riders reflected within variable annuity net derivative results accounted for at fair value ; § Changes in the fair value of the derivatives we own to hedge our GLB riders reflected within variable annuity net derivative results ; and § Changes in the fair value of the embedded derivative liabilities related to index call options we may purchase in the future to hedge contract holder index allocations applicable to future reset periods for our indexed annuity products accounted for at fair value; · Changes in reserves resulting from benefit ratio unlocking on our GDB and GLB riders; · Income (loss) from reserve changes, net of related amortization, on business sold through reinsurance; · Gains (losses) on early extinguishment of debt; · Losses from the impairment of intangible assets; · Income (loss) from discontinued operations; and · Income (loss) from the initial adoption of new accounting standards. Operating revenues represent GAAP revenues excluding the pre-tax effects of the following items, as applicable: · Excluded realized gain (loss); · Revenue adjustments from the initial adoption of new accounting standards; · Amortization of DFEL arising from changes in GDB and GLB benefit ratio unlocking; and · Amortization of deferred gains arising from r eserve changes on business sold through reinsurance. We use our prevailing corporate federal income tax rate of 35 % while taking into account any permanent differences for events recognized differently in our financial statements and federal income tax returns when reconciling our non-GAAP measures to the most comparable GAAP measure. Operating revenues and income (loss) from operations do not replace revenues and net income as the GAAP measures of our consolidated results of operations. Segment information (in millions) was as follows: For the Years Ended December 31, 2015 2014 2013 Revenues Operating revenues: Annuities $ 4,120 $ 3,746 $ 3,321 Retirement Plan Services 1,101 1,090 1,071 Life Insurance 5,948 6,003 5,170 Group Protection 2,357 2,445 2,260 Other Operations 374 432 417 Excluded realized gain (loss), pre-tax (329 ) (165 ) (274 ) Amortization of deferred gain arising from reserve changes on business sold through reinsurance, pre-tax 3 3 3 Amortization of DFEL associated with benefit ratio unlocking, pre-tax (2 ) - 1 Total revenues $ 13,572 $ 13,554 $ 11,969 For the Years Ended December 31, 2015 2014 2013 Net Income (Loss) Income (loss) from operations: Annuities $ 996 $ 925 $ 750 Retirement Plan Services 140 160 141 Life Insurance 370 612 544 Group Protection 43 23 71 Other Operations (154 ) (109 ) (122 ) Excluded realized gain (loss), after-tax (214 ) (106 ) (178 ) Income (loss) from reserve changes (net of related amortization) on business sold through reinsurance, after-tax 2 2 2 Benefit ratio unlocking, after-tax (29 ) 7 36 Income (loss) from continuing operations, after-tax 1,154 1,514 1,244 Income (loss) from discontinued operations, after-tax - 1 - Net income (loss) $ 1,154 $ 1,515 $ 1,244 For the Years Ended December 31, 2015 2014 2013 Net Investment Income Annuities $ 1,004 $ 1,033 $ 1,044 Retirement Plan Services 846 831 827 Life Insurance 2,541 2,529 2,452 Group Protection 184 180 165 Other Operations 252 286 266 Total net investment income $ 4,827 $ 4,859 $ 4,754 For the Years Ended December 31, 2015 2014 2013 Amortization of DAC and VOBA, Net of Interest Annuities $ 342 $ 362 $ 383 Retirement Plan Services 30 37 48 Life Insurance 831 655 447 Group Protection 80 57 53 Total amortization of DAC and VOBA, net of interest $ 1,283 $ 1,111 $ 931 For the Years Ended December 31, 2015 2014 2013 Federal Income Tax Expense (Benefit) Annuities $ 262 $ 238 $ 177 Retirement Plan Services 49 51 49 Life Insurance 159 295 268 Group Protection 23 12 38 Other Operations (86 ) (57 ) (71 ) Excluded realized gain (loss) (116 ) (60 ) (95 ) Reserve changes (net of related amortization) on business sold through reinsurance 1 1 1 Benefit ratio unlocking (16 ) 3 20 Total federal income tax expense (benefit) $ 276 $ 483 $ 387 As of December 31, 2015 2014 Assets Annuities $ 130,641 $ 130,316 Retirement Plan Services 32,649 33,678 Life Insurance 71,062 70,493 Group Protection 4,182 4,238 Other Operations 13,403 14,652 Total assets $ 251,937 $ 253,377 |
Supplemental Disclosures of Cas
Supplemental Disclosures of Cash Flow | 12 Months Ended |
Dec. 31, 2015 | |
Supplemental Cash Flow Information [Abstract] | |
Cash Flow, Supplemental Disclosures | 2 2 . Supplemental Disclosures of Cash Flow Data The following summarizes our supplemental cash flow data (in millions): For the Years Ended December 31, 2015 2014 2013 Interest paid $ 265 $ 272 $ 260 Income taxes paid (received) 215 254 10 Significant non-cash investing and financing transactions: Value of stock received from stock options exercised through stock swap transactions - 13 5 Other assets received in our financing transaction 252 - - Other investments received in our repurchase program - 152 - |
Quarterly Results of Operations
Quarterly Results of Operations (Unaudited) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results of Operations (Unaudited) | 23. Quarterly Results of Operations (Unaudited) The unaudited quarterly results of operations (in millions, except per share data) were as follows: For the Three Months Ended March 31, June 30, September 30, December 31, 2015 Total revenues $ 3,304 $ 3,381 $ 3,716 $ 3,171 Total expenses 2,942 2,932 3,448 2,820 Net income (loss) 300 344 227 283 Earnings (loss) per common share – basic: Net income (loss) 1.17 1.37 0.91 1.15 Earnings (loss) per common share – diluted: Net income (loss) 1.15 1.35 0.87 1.14 2014 Total revenues $ 3,176 $ 3,282 $ 3,411 $ 3,685 Total expenses 2,749 2,745 2,810 3,253 Income (loss) from continuing operations 329 398 439 348 Income (loss) from discontinued operations, net of federal income taxes - - - 1 Net income (loss) 329 398 439 349 Earnings (loss) per common share – basic: Income (loss) from continuing operations 1.25 1.52 1.69 1.35 Income (loss) from discontinued operations - - - - Net income (loss) 1.25 1.52 1.69 1.35 Earnings (loss) per common share – diluted: Income (loss) from continuing operations 1.21 1.48 1.65 1.32 Income (loss) from discontinued operations - - - - Net income (loss) 1.21 1.48 1.65 1.32 |
SCHEDULE I - CONSOLIDATED SUMMA
SCHEDULE I - CONSOLIDATED SUMMARY OF INVESTMENTS, OTHER THAN INVESTMENTS IN RELATED PARTIES | 12 Months Ended |
Dec. 31, 2015 | |
Summary of Investments, Other than Investments in Related Parties [Abstract] | |
Summary of Investments - Other than Investments in Related Parties Supplemental Schedule | LINCOLN NATIONAL CORPORATION SCHEDULE I – CONSOLIDATED SUMMARY OF INVESTMENTS – OTHER THAN INVESTMENTS IN RELATED PARTIES (in millions ) Column A Column B Column C Column D As of December 31, 2015 Fair Carrying Type of Investment Cost Value Value Available-For-Sale Fixed Maturity Securities (1) Bonds: U.S. government and government agencies and authorities $ 386 $ 429 $ 429 Asset-backed securities 1,652 1,688 1,688 States, municipalities and political subdivisions 3,821 4,480 4,480 Mortgage-backed securities 3,930 4,104 4,104 Foreign governments 465 524 524 Public utilities 11,922 12,653 12,653 All other corporate bonds 59,055 60,280 60,280 Hybrid and redeemable preferred securities 762 806 806 Variable interest entities 596 598 598 Total available-for-sale fixed maturity securities 82,589 85,562 85,562 Available-For-Sale Equity Securities (1) Common stocks: Banks, trusts and insurance companies 173 171 171 Industrial, miscellaneous and all other 3 2 2 Nonredeemable preferred securities 50 64 64 Total available-for-sale equity securities 226 237 237 Trading securities 1,653 1,854 1,854 Mortgage loans on real estate 8,678 8,936 8,678 Real estate 17 N/A 17 Policy loans 2,545 N/A 2,545 Derivative investments (2) 1,731 1,537 1,537 Other investments 1,778 1,778 1,778 Total investments $ 99,217 $ 102,208 (1) Investments deemed to have declines in value that are other-than-temporary are written down or reserved for to reduce the carrying value to their estimated realizable value. (2) Derivative investment assets were offset b y $69 mill ion in derivative liabilities reflected in other liabilities on our Consolidated Balance Sheets. |
SCHEDULE II - CONDENSED FINANCI
SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT | 12 Months Ended |
Dec. 31, 2015 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed financial information of registrant | LINCOLN NATIONAL CORPORATION SCHEDULE II – CONDENSED FINANCIAL INFORMATION OF REGISTRANT BALANCE SHEETS (Parent Company Only) (in millions, except share data) As of December 31, 2015 2014 ASSETS Investments in subsidiaries (1) $ 16,499 $ 18,488 Derivative investments 253 298 Other investments 40 5 Cash and invested cash 681 666 Loans and accrued interest to subsidiaries (1) 2,522 2,495 Other assets 32 47 Total assets $ 20,027 $ 21,999 LIABILITIES AND STOCKHOLDERS’ EQUITY Liabilities Common dividends payable $ 61 $ 51 Short-term debt - 250 Long-term debt 5,331 5,021 Loans from subsidiaries (1) 521 453 Payables for collateral on investments 94 96 Other liabilities 403 388 Total liabilities 6,410 6,259 Contingencies and Commitments Stockholders’ Equity Common stock – 800,000,000 shares authorized 6,298 6,622 Retained earnings 6,474 6,022 Accumulated other comprehensive income (loss) 845 3,096 Total stockholders’ equity 13,617 15,740 Total liabilities and stockholders’ equity $ 20,027 $ 21,999 (1) Eliminated in consolidation. LINCOLN NATIONAL CORPORATION SCHEDULE II – CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Continued) STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parent Company Only) (in millions) For the Years Ended December 31, 2015 2014 2013 Revenues Dividends from subsidiaries (1) $ 1,175 $ 791 $ 725 Interest from subsidiaries (1) 111 125 128 Net investment income - 1 - Realized gain (loss) - 1 (9 ) Other revenues 25 - 5 Total revenues 1,311 918 849 Expenses Operating and administrative 38 39 46 Interest – subsidiaries (1) 7 6 5 Interest – other 270 280 282 Total expenses 315 325 333 Income (loss) before federal income taxes, equity in income (loss) of subsidiaries, less dividends 996 593 516 Federal income tax expense (benefit) (66 ) (77 ) (73 ) Income (loss) before equity in income (loss) of subsidiaries, less dividends 1,062 670 589 Equity in income (loss) of subsidiaries, less dividends 92 845 655 Net income (loss) 1,154 1,515 1,244 Other comprehensive income (loss), net of tax: Unrealized investment gains (losses) (2,229 ) 1,591 (2,335 ) Foreign currency translation adjustment (2 ) 2 (1 ) Funded status of employee benefit plans (20 ) (60 ) 91 Total other comprehensive income (loss), net of tax (2,251 ) 1,533 (2,245 ) Comprehensive income (loss) $ (1,097 ) $ 3,048 $ (1,001 ) (1) Eliminated in consolidation. LINCOLN NATIONAL CORPORATION SCHEDULE II – CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Continued) STATEMENTS OF CASH FLOWS (Parent Company Only) (in millions) For the Years Ended December 31, 2015 2014 2013 Cash Flows from Operating Activities Net income (loss) $ 1,154 $ 1,515 $ 1,244 Adjustments to reconcile net income (loss) to net cash provided by operating activities: Equity in (income) loss of subsidiaries greater than distributions (1) (92 ) (845 ) (655 ) Realized (gain) loss - (1 ) 9 Change in federal income tax accruals 106 (32 ) 63 Other (74 ) (1 ) (10 ) Net cash provided by (used in) operating activities 1,094 636 651 Cash Flows from Investing Activities Sales or maturities of investments - 50 - Investment acquisition - - (25 ) Capital contribution to subsidiaries (1) (75 ) (5 ) (75 ) Increase (decrease) in collateral on investments (38 ) (278 ) 315 Net cash provided by (used in) investing activities (113 ) (233 ) 215 Cash Flows from Financing Activities Payment of long-term debt, including current maturities (250 ) (500 ) - Issuance of long-term debt, net of issuance costs 300 - 400 Increase (decrease) in loans from subsidiaries, net (1) 68 (7 ) 405 Increase (decrease) in loans to subsidiaries, net (1) (27 ) - (410 ) Common stock issued for benefit plans and excess tax benefits 47 32 32 Repurchase of common stock (900 ) (650 ) (450 ) Dividends paid to common and preferred stockholders (204 ) (170 ) (129 ) Net cash provided by (used in) financing activities (966 ) (1,295 ) (152 ) Net increase (decrease) in cash and invested cash 15 (892 ) 714 Cash and invested cash as of beginning-of-year 666 1,558 844 Cash and invested cash as of end-of-year $ 681 $ 666 $ 1,558 (1) Eliminated in consolidation. |
SCHEDULE III - CONSOLIDATED SUP
SCHEDULE III - CONSOLIDATED SUPPLEMENTARY INSURANCE INFORMATION | 12 Months Ended |
Dec. 31, 2015 | |
Supplementary Insurance Information [Abstract] | |
Supplementary Insurance Information | LINCOLN NATIONAL CORPORATION SCHEDULE III – CONDENSED SUPPLEMENTARY INSURANCE INFORMATION (in millions) Column A Column B Column C Column D Column E Column F Other Future Contract DAC and Contract Unearned Holder Insurance Segment VOBA Benefits Premiums (1) Funds Premiums As of or For the Year Ended December 31, 2015 Annuities $ 3,558 $ 2,095 $ - $ 21,162 $ 418 Retirement Plan Services 216 4 - 16,583 - Life Insurance 5,496 10,595 - 38,706 649 Group Protection 240 2,347 - 170 2,163 Other Operations - 5,667 - 741 16 Total $ 9,510 $ 20,708 $ - $ 77,362 $ 3,246 As of or For the Year Ended December 31, 2014 Annuities $ 3,062 $ 1,569 $ - $ 21,070 $ 173 Retirement Plan Services 148 2 - 16,223 - Life Insurance 4,749 10,347 - 37,280 558 Group Protection 248 2,249 - 183 2,252 Other Operations - 5,890 - 756 5 Total $ 8,207 $ 20,057 $ - $ 75,512 $ 2,988 As of or For the Year Ended December 31, 2013 Annuities $ 2,770 $ 138 $ - $ 21,269 $ 116 Retirement Plan Services 173 - - 15,310 - Life Insurance 5,713 9,058 - 36,997 486 Group Protection 230 2,033 - 200 2,084 Other Operations - 6,022 - 772 1 Total $ 8,886 $ 17,251 $ - $ 74,548 $ 2,687 (1) Unearned premiums are included in Column C , future contract benefits . LINCOLN NATIONAL CORPORATION SCHEDULE III – CONDENSED SUPPLEMENTARY INSURANCE INFORMATION (Continued) (in millions) Column A Column G Column H Column I Column J Column K Benefits Amortization Net and of DAC Other Investment Interest and Operating Premiums Segment Income Credited VOBA Expenses Written As of or For the Year Ended December 31, 2015 Annuities $ 1,004 $ 1,259 $ 330 $ 1,317 $ - Retirement Plan Services 846 497 30 385 - Life Insurance 2,541 3,938 831 650 - Group Protection 184 1,638 80 573 - Other Operations 252 220 - 394 - Total $ 4,827 $ 7,552 $ 1,271 $ 3,319 $ - As of or For the Year Ended December 31, 2014 Annuities $ 1,034 $ 959 $ 365 $ 1,252 $ - Retirement Plan Services 830 474 37 368 - Life Insurance 2,530 3,783 655 658 - Group Protection 180 1,778 57 574 - Other Operations 285 217 - 380 - Total $ 4,859 $ 7,211 $ 1,114 $ 3,232 $ - As of or For the Year Ended December 31, 2013 Annuities $ 1,044 $ 835 $ 390 $ 1,113 $ - Retirement Plan Services 827 470 48 363 - Life Insurance 2,452 3,283 447 628 - Group Protection 165 1,562 53 537 - Other Operations 266 222 - 387 - Total $ 4,754 $ 6,372 $ 938 $ 3,028 $ - |
SCHEDULE IV - CONSOLIDATED REIN
SCHEDULE IV - CONSOLIDATED REINSURANCE | 12 Months Ended |
Dec. 31, 2015 | |
Supplemental Schedule of Reinsurance Premiums for Insurance Companies [Abstract] | |
Reinsurance Supplemental Schedule | LINCOLN NATIONAL CORPORATION SCHEDULE IV – CONSOLIDATED REINSURANCE (in millions) Column A Column B Column C Column D Column E Column F Ceded Assumed Percentage to from of Amount Gross Other Other Net Assumed Description Amount Companies Companies Amount to Net As of or For the Year Ended December 31, 2015 Individual life insurance in force (1) $ 1,032,900 287,400 10,400 $ 755,900 1.4% Premiums: Life insurance and annuities (2) 8,112 1,289 58 6,881 0.8% Accident and health insurance 1,417 22 15 1,410 1.1% Total premiums $ 9,529 $ 1,311 $ 73 $ 8,291 As of or For the Year Ended December 31, 2014 Individual life insurance in force (1) $ 1,034,800 $ 292,800 $ 1,500 $ 743,500 0.2% Premiums: Life insurance and annuities (2) 7,579 1,381 7 6,205 0.1% Accident and health insurance 1,485 29 - 1,456 0.0% Total premiums $ 9,064 $ 1,410 $ 7 $ 7,661 As of or For the Year Ended December 31, 2013 Individual life insurance in force (1) $ 990,600 $ 313,200 $ 1,700 $ 679,100 0.3% Premiums: Life insurance and annuities (2) 6,644 1,247 8 5,405 0.1% Accident and health insurance 1,379 28 - 1,351 0.0% Total premiums $ 8,023 $ 1,275 $ 8 $ 6,756 (1) Includes Group Protection segment and Other Operations in-force amounts. (2) Includes insurance fees on universal life and other interest-sensitive products. |
Nature of Operations, Basis of
Nature of Operations, Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Nature Of Operations And Basis Of Presentation [Abstract] | |
Principles Of Consolidation, Policy | Principles of Consolidation The accompanying consolidated financial statements include the accounts of LNC and all other entities in which we have a controlling financial interest and any variable interest entities (“VIEs”) in which we are the primary beneficiary. Entities in which we do not have a controlling financial interest and do not exercise significant management influence over the operating and financing decisions are reported using the equity method. All material inter-company accounts and transactions have been eliminated in consolidation. Our involvement with VIEs is primarily to invest in assets that allow us to gain exposure to a broadly diversified portfolio of asset classes. A VIE is an entity that does not have sufficient equity to finance its own activities without additional financial support or where investors lack certain characteristics of a controlling financial interest. We assess our contractual, ownership or other interests in a VIE to determine if our interest participates in the variability the VIE was designed to absorb and pass onto variable interest holders. We perform an ongoing qualitative assessment of our variable interests in VIEs to determine whether we have a controlling financial interest and would therefore be considered the primary beneficiary of the VIE. If we determine we are the primary beneficiary of a VIE, we consolidate the assets and liabilities of the VIE in our consolidated financial statements. |
Accounting Estimates and Assumptions, Policy | Accounting Estimates and Assumptions The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions affecting the reported amounts of assets and liabilities and the disclosures of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses for the reporting period. Those estimates are inherently subject to change and actual results could differ from those estimates. Included among the material (or potentially material) reported amounts and disclosures that require extensive use of estimates are: fair value of certain invested assets and derivatives, other-than-temporary impairment (“OTTI”) and asset valuation allowances, deferred acquisition costs (“DAC”) , value of business acquired (“VOBA”) , deferred sales inducements (“DSI”), goodwill, future contract benefits, other contract holder funds including deferred front-end loads (“DFEL”) , pension plans, stock-based incentive compensation, income taxes and the potential effects of resolving litigated matters. |
Business Combinations, Policy | Business Combinations We use the acquisition method of accounting for all business combination transactions, and accordingly, recognize the fair values of assets acquired, liabilities assumed and any noncontrolling interests in our consolidated financial statements. The allocation of fair values may be subject to adjustment after the initial allocation for up to a one-year period as more information becomes available relative to the fair values as of the acquisition date. The consolidated financial statements include the results of operations of any acquired company since the acquisition date. |
Fair Value Measurement, Policy | Fair Value Measurement Our measurement of fair value is based on assumptions used by market participants in pricing the asset or liability, which may include inherent risk, restrictions on the sale or use of an asset or non-performance risk (“NPR”), which would include our own credit risk. Our estimate of an exchange price is the price in an orderly transaction between market participants to sell the asset or transfer the liability (“exit price”) in the principal market, or the most advantageous market in the absence of a principal market, for that asset or liability, as opposed to the price that would be paid to acquire the asset or receive a liability (“entry price”). Pursuant to the Fair Value Measurements and Disclosures Topic of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification TM (“ASC”), we categorize our financial instruments carried at fair value into a three-level fair value hierarchy, based on the priority of inputs to the respective valuation technique. The three-level hierarchy for fair value measurement is defined as follows: · Level 1 – inputs to the valuation methodology are quoted prices available in active markets for identical investments as of the reporting date, except for large holdings subject to “blockage discounts” that are excluded; · Level 2 – inputs to the valuation methodology are other than quoted prices in active markets, which are either directly or indirectly observable as of the reporting date, and fair value can be determined through the use of models or other valuation methodologies; and · Level 3 – inputs to the valuation methodology are unobservable inputs in situations where there is little or no market activity for the asset or liability, and we make estimates and assumptions related to the pricing of the asset or liability, including assumptions regarding risk. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the investment. When a determination is made to classify an asset or liability within Level 3 of the fair value hierarchy, the determination is based upon the significance of the unobservable inputs to the overall fair value measurement. Because certain securities trade in less liquid or illiquid markets with limited or no pricing information, the determination of fair value for these securities is inherently more difficult. However, Level 3 fair value investments may include, in addition to the unobservable or Level 3 inputs, observable components, which are components that are actively quoted or can be validated to market-based sources. |
Available-For-Sale Securities - Fair Value Methodologies and Associated inputs, Policy | Available-For-Sale Securities – Fair Valuation Methodologies and Associated Inputs Securities classified as available -for-sale (“AFS”) consist of fixed maturity and equity securities and are stated at fair value with unrealized gains and losses included within accumulated other comprehensive income (loss) (“AOCI”), net of associated DAC, VOBA, DSI , future contract benefits, other contract holder funds and deferred income taxes. We measure the fair value of our securities classified as AFS based on assumptions used by market participants in pricing the security. The most appropriate valuation methodology is selected based on the specific characteristics of the fixed maturity or equity security, and we consistently apply the valuation methodology to measure the security’s fair value. Our fair value measurement is based on a market approach that utilizes prices and other relevant information generated by market transactions involving identical or comparable securities. Sources of inputs to the market approach primarily include third-party pricing services, independent broker quotations or pricing matrices. We do not adjust prices received from third parties; however, we do analyze the third-party pricing services’ valuation methodologies and related inputs and perform additional evaluation to determine the appropriate level within the fair value hierarchy. The observable and unobservable inputs to our valuation methodologies are based on a set of standard inputs that we generally use to evaluate all of our AFS securities. Observable inputs include benchmark yields, reported trades, broker-dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data. In addition, market indicators, industry and economic events are monitored, and further market data is acquired if certain triggers are met. For certain security types, additional inputs may be used, or some of the inputs described above may not be applicable. For private placement securities, we use pricing matrices that utilize observable pricing inputs of similar public securities and Treasury yields as inputs to the fair value measurement. Depending on the type of security or the daily market activity, standard inputs may be prioritized differently or may not be available for all AFS securities on any given day. For broker-quoted only securities, non-binding quotes from market makers or broker-dealers are obtained from sources recognized as market participants. For securities trading in less liquid or illiquid markets with limited or no pricing information, we use unobservable inputs to measure fair value. The following summarizes our fair valuation methodologies and associated inputs, which are particular to the specified security type and are in addition to the defined standard inputs to our valuation methodologies for all of our AFS securities discussed above: · Corporate bonds and U.S. g overnment bonds – We also use Trade Reporting and Compliance Engine TM reported tables for our corporate bonds and vendor trading platform data for our U.S. g overnment bonds. · Mortg age- and asset-backed securities (“ABS”) – We also utilize additional inputs, which include new issues data, monthly payment information and monthly collateral performance, including prepayments, severity, delinquencies, step-down features and over collateralization features for each of our mortgage-backed securities (“MBS”), which include collateralized mortgage obligations and mortgage pass through securities backed by residential mortgages (“RMBS”), commercial mortgage-backed securities (“CMBS”) , collateralized loan obligations (“CLOs”) and collateralized debt obligations (“C D Os”). · State and municipal bonds – We also use additional inputs that include information from the Municipal Securities Rule Making Board, as well as material event notices, new issue data, issuer financial statements and Municipal Market Data benchmark yields for our state and municipal bonds. · Hybrid and redeemable preferred and equity securities – We also utilize additional inputs of exchange prices (underlying and common stock of the same issuer) for our hybrid and redeemable preferred and equity securities . In order to validate the pricing information and broker-dealer quotes, we employ, where possible, procedures that include comparisons with similar observable positions, comparisons with subsequent sales and observations of general market movements for those security classes. We have policies and procedures in place to review the process that is utilized by our third-party pricing service and the output that is provided to us by the pricing service. On a periodic basis, we test the pricing for a sample of securities to evaluate the inputs and assumptions used by the pricing service, and we perform a comparison of the pricing service output to an alternative pricing source. We also evaluate prices provided by our primary pricing service to ensure that they are not stale or unreasonable by reviewing the prices for unusual changes from period to period based on certain parameters or for lack of change from one period to the next. |
AFS - Evaluation for Recovery of Amortized Cost, Policy | AFS Securities – Evaluation for Recovery of Amortized Cost We regularly review our AFS securities for declines in fair value that we determine to be other-than-temporary. For an equity security, if we do not have the ability and intent to hold the security for a sufficient period of time to allow for a recovery in value, we conclude that an OTTI has occurred and the amortized cost of the equity security is written down to the current fair value, with a corresponding charge to realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). When assessing our ability and intent to hold the equity security to recovery, we consider, among other things, the severity and duration of the decline in fair value of the equity security as well as the cause of the decline, a fundamental analysis of the liquidity, and business prospects and overall financial condition of the issuer. For our fixed maturity AFS securities (also referred to as “debt securities”), we generally consider the following to determine whether our debt securities with unrealized losses are other-than-temporarily impaired: · The estimated range and average period until recovery; · The estimated range and average holding period to maturity; · Remaining payment terms of the security; · Current delinquencies and nonperforming assets of underlying collateral; · Expected future default rates; · Collateral value by vintage, geographic region, industry concentration or property type; · Subordination levels or other credit enhancements as of the balance sheet date as compared to origination; and · Contractual and regulatory cash obligations. For a debt security, if we intend to sell a security, or it is more likely than not we will be required to sell a debt security before recovery of its amortized cost basis and the fair value of the debt security is below amortized cost, we conclude that an OTTI has occurred and the amortized cost is written down to current fair value, with a corresponding charge to realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). If we do not intend to sell a debt security, or it is not more likely than not we will be required to sell a debt security before recovery of its amortized cost basis but the present value of the cash flows expected to be collected is less than the amortized cost of the debt security (referred to as the credit loss), we conclude that an OTTI has occurred and the amortized cost is written down to the estimated recovery value with a corresponding charge to realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss), as this amount is deemed the credit portion of the OTTI. The remainder of the decline to fair value is recorded in other comprehensive income (“OCI”) to unrealized OTTI on AFS securities on our Consolidated Statements of Stockholders’ Equity, as this amount is considered a noncredit (i.e., recoverable) impairment. When assessing our intent to sell a debt security, or if it is more likely than not we will be required to sell a debt security before recovery of its cost basis, we evaluate facts and circumstances such as, but not limited to, decisions to reposition our security portfolio, sales of securities to meet cash flow needs and sales of securities to capitalize on favorable pricing. Management considers the following as part of the evaluation: · The current economic environment and market conditions; · Our business strategy and current business plans; · The nature and type of security, including expected maturities and exposure to general credit, liquidity, market and interest rate risk; · Our analysis of data from financial models and other internal and industry sources to evaluate the current effectiveness of our hedging and overall risk management strategies; · The current and expected timing of contractual maturities of our assets and liabilities, expectations of prepayments on investments and expectations for surrenders and withdrawals of life insurance policies and annuity contracts; · The capital risk limits approved by management; and · Our current financial condition and liquidity demands. In order to determine the amount of the credit loss for a debt security, we calculate the recovery value by performing a discounted cash flow analysis based on the current cash flows and future cash flows we expect to recover. The discount rate is the effective interest rate implicit in the underlying debt security. The effective interest rate is the original yield, or the coupon if the debt security was previously impaired. See the discussion below for additional information on the methodology and significant inputs, by security type, that we use to determine the amount of a credit loss. To determine the recovery period of a debt security, we consider the facts and circumstances surrounding the underlying issuer including, but not limited to, the following: · Historical and implied volatility of the security; · Length of time and extent to which the fair value has been less than amortized cost; · Adverse conditions specifically related to the security or to specific conditions in an industry or geographic area; · Failure, if any, of the issuer of the security to make scheduled payments; and · Recoveries or additional declines in fair value subsequent to the balance sheet date. In periods subsequent to the recognition of an OTTI, the AFS security is accounted for as if it had been purchased on the measurement date of the OTTI. Therefore, for the fixed maturity AFS security, the original discount or reduced premium is reflected in net investment income over the contractual term of the investment in a manner that produces a constant effective yield. To determine recovery value of a corporate bond, CLO or CDO, we perform additional analysis related to the underlying issuer including, but not limited to, the following: · Fundamentals of the issuer to determine what we would recover if they were to file bankruptcy versus the price at which the market is trading; · Fundamentals of the industry in which the issuer operates; · Earnings multiples for the given industry or sector of an industry that the underlying issuer operates within, divided by the outstanding debt to determine an expected recovery value of the security in the case of a liquidation; · Expected cash flows of the issuer (e.g., whether the issuer has cash flows in excess of what is required to fund its operations); · Expectations regarding defaults and recovery rates; · Changes to the rating of the security by a rating agency; and · Additional market information (e.g., if there has been a replacement of the corporate debt security). Each quarter we review the cash flows for the MBS to determine whether or not they are sufficient to provide for the recovery of our amortized cost. We revise our cash flow projections only for those securities that are at most risk for impairment based on current credit enhancement and trends in the underlying collateral performance. To determine recovery value of a MBS, we perform additional analysis related to the underlying issuer including, but not limited to, the following: · Discounted cash flow analysis based on the current cash flows and future cash flows we expect to recover; · Level of creditworthiness of the home equity loans or residential mortgages that back an RMBS or commercial mortgages that back a CMBS; · Susceptibility to fair value fluctuations for changes in the interest rate environment; · Susceptibility to reinvestment risks, in cases where market yields are lower than the securities’ book yield earned; · Susceptibility to reinvestment risks, in cases where market yields are higher than the book yields earned on a security; · Expectations of sale of such a security where market yields are higher than the book yields earned on a security; and · Susceptibility to variability of prepayments. When evaluating MBS and mortgage-related ABS, we consider a number of pool-specific factors as well as market level factors when determining whether or not the impairment on the security is temporary or other-than-temporary. The most important factor is the performance of the underlying collateral in the security and the trends of that performance in the prior periods. We use this information about the collateral to forecast the timing and rate of mortgage loan defaults, including making projections for loans that are already delinquent and for those loans that are currently performing but may become delinquent in the future. Other factors used in this analysis include the credit characteristics of borrowers, geographic distribution of underlying loans and timing of liquidations by state. Once default rates and timing assumptions are determined, we then make assumptions regarding the severity of a default if it were to occur. Factors that impact the severity assumption include expectations for future home price appreciation or depreciation, loan size, first lien versus second lien, existence of loan level private mortgage insurance, type of occupancy and geographic distribution of loans. Once default and severity assumptions are determined for the security in question, cash flows for the underlying collateral are projected including expected defaults and prepayments. These cash flows on the collateral are then translated to cash flows on our tranche based on the cash flow waterfall of the entire capital security structure. If this analysis indicates the entire principal on a particular security will not be returned, the security is reviewed for OTTI by comparing the expected cash flows to amortized cost. To the extent that the security has already been impaired or was purchased at a discount, such that the amortized cost of the security is less than or equal to the present value of cash flows expected to be collected, no impairment is required. Otherwise, if the amortized cost of the security is greater than the present value of the cash flows expected to be collected, and the security was not purchased at a discount greater than the expected principal loss, then impairment is recognized. We further monitor the cash flows of all of our AFS securities backed by mortgages on an ongoing basis. We also perform detailed analysis on all of our subprime, Alt-A, non-agency residential MBS and on a significant percentage of our AFS securities backed by pools of commercial mortgages. The detailed analysis includes revising projected cash flows by updating the cash flows for actual cash received and applying assumptions with respect to expected defaults, foreclosures and recoveries in the future. These revised projected cash flows are then compared to the amount of credit enhancement (subordination) in the structure to determine whether the amortized cost of the security is recoverable. If it is not recoverable, we record an impairment of the security. |
Trading Securities, Policy | Trading Securities Trading securities consist of fixed maturity and equity securities in designated portfolios, some of which support modified coinsurance (“Modco”) and coinsurance with funds withheld (“CFW”) reinsurance arrangements. Investment results for the portfolios that support Modco and CFW reinsurance arrangements, including gains and losses from sales, are passed directly to the reinsurers pursuant to contractual terms of the reinsurance arrangements. Trading securities are carried at fair value and changes in fair value and changes in the fair value of embedded derivative liabilities associated with the underlying reinsurance arrangements, are recorded in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss) as they occur. |
Alternative Investments, Policy | Alternative Investments Alternative investments, which consist primarily of investments in limited partnerships (“LPs”), are included in other investments on our Consolidated Balance Sheets. We account for our investments in LPs using the equity method to determine the carrying value. Recognition of alternative investment income is delayed due to the availability of the related financial statements, which are generally obtained from the partnerships’ general partners. As a result, our venture capital, real estate and oil and gas portfolios are generally on a three-month delay and our hedge funds are on a one-month delay. In addition, the impact of audit adjustments related to completion of calendar-year financial statement audits of the investees are typically received during the second quarter of each calendar year. Accordingly, our investment income from alternative investments for any calendar-year period may not include the complete impact of the change in the underlying net assets for the partnership for that calendar-year period. |
Payables for Collateral on Investments, Policy | Payables for Collateral on Investments When we enter into collateralized financing transactions on our investments, a liability is recorded equal to the cash or non-cash collateral received. This liability is included within payables for collateral on investments on our Consolidated Balance Sheets. Income and expenses associated with these transactions are recorded as investment income and investment expenses within net investment income on our Consolidated Statem ents of Comprehensive Income (Loss). Changes in payables for collateral on investments are reflected within cash flows from investing activities on our Consolidated Statements of Cash Flows. |
Mortgage Loans on Real Estate, Policy | Mortgage Loans on Real Estate Mortgage loans on real estate are carried at unpaid principal balances adjusted for amortization of premiums and accretion of discounts and are net of valuation allowances. Interest income is accrued on the principal balance of the loan based on the loan’s contractual interest rate. Premiums and discounts are amortized using the effective yield method over the life of the loan. Interest income and amortization of premiums and discounts are reported in net investment income on our Consolidated Statements of Comprehensive Income (Loss) along with mortgage loan fees, which are recorded as they are incurred. Our commercial loan portfolio is comprised of long-term loans secured by existing commercial real estate. As such, it does not exhibit risk characteristics unique to mezzanine, construction, residential, agricultural, land or other types of real estate loans. We believe all of the loans in our portfolio share three primary risks: borrower creditworthiness; sustainability of the cash flow of the property; and market risk; therefore, our methods for monitoring and assessing credit risk are consistent for our entire portfolio. Loans are considered impaired when it is probable that, based upon current information and events, we will be unable to collect all amounts due under the contractual terms of the loan agreement. When we determine that a loan is impaired, a valuation allowance is established for the excess carrying value of the loan over its estimated value. The loan’s estimated value is based on: the present value of expected future cash flows discounted at the loan’s effective interest rate; the loan’s observable market price; or the fair value of the loan’s collateral. Valuation allowances are maintained at a level we believe is adequate to absorb estimated probable credit losses of each specific loan. Our periodic evaluation of the adequacy of the allowance for losses is based on our past loan loss experience, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay (including the timing of future payments), the estimated value of the underlying collateral, composition of the loan portfolio, current economic conditions and other relevant factors. Trends in market vacancy and rental rates are incorporated into the analysis that we perform for monitored loans and may contribute to the establishment of (or an increase or decrease in) an allowance for credit losses. In addition, we review each loan individually in our commercial mortgage loan portfolio on an annual basis to identify emerging risks. We focus on properties that experienced a reduction in debt-service coverage or that have significant exposure to tenants with deteriorating credit profiles. Where warranted, we establish or increase loss reserves for a specific loan based upon this analysis. Our process for determining past due or delinquency status begins when a payment date is missed, at which time the borrower is contacted. After the grace period expiration that may last up to 10 days, we send a default notice. The default notice generally provides a short time period to cure the default. Our policy is to report loans that are 60 or more days past due, which equates to two or more payments missed, as delinquent. We do not accrue interest on loans 90 days past due, and any interest received on these loans is either applied to the principal or recorded in net investment income on our Consolidated Statements of Comprehensive Income (Loss) when received, depending on the assessment of the collectability of the loan. We resume accruing interest once a loan complies with all of its original terms or restructured terms. Mortgage loans deemed un collectable are charged against the allowance for losses, and subsequent recoveries, if any, are credited to the allowance for losses. All mortgage loans that are impaired have an established allowance for credit losses. Changes in valuation allowances are reported in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). We measure and assess the credit quality of our mortgage loans by using loan-to-value and debt-service coverage ratios. The loan-to-value ratio compares the principal amount of the loan to the fair value at origination of the underlying property collateralizing the loan and is commonly expressed as a percentage. Loan-to-value ratios greater than 100% indicate that the principal amount is greater than the collateral value. Therefore, all else being equal, a lower loan-to-value ratio generally indicates a higher quality loan. The debt-service coverage ratio compares a property’s net operating income to its debt-service payments. Debt-service coverage ratios of less than 1.0 indicate that property operations do not generate enough income to cover its current debt payments. Therefore, all else being equal, a higher debt-service coverage ratio generally indicates a higher quality loan. |
Policy Loans, Policy | Policy Loans Policy loans represent loans we issue to contract holders that use the cash surrender value of their life insurance policy as collateral. Policy loans are carried at unpaid principal balances. |
Real Estate, Policy | Real Estate Real estate includes both real estate held for the production of income and real estate held-for-sale. Real estate held for the production of income is carried at cost less accumulated depreciation. Depreciation is calculated on a straight-line basis over the estimated useful life of the asset. We periodically review properties held for the production of income for impairment. Properties whose carrying values are greater than their projected undiscounted cash flows are written down to estimated fair value, with impairment losses reported in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). The estimated fair value of real estate is generally computed using the present value of expected future cash flows from the real estate discounted at a rate commensurate with the underlying risks. Real estate classified as held-for-sale is stated at the lower of depreciated cost or fair value less expected disposition costs at the time classified as held-for-sale. Real estate is not depreciated while it is classified as held-for-sale. Also, valuation allowances for losses are established, as appropriate, for real estate held-for-sale and any changes to the valuation allowances are reported in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). Real estate acquired through foreclosure proceedings is recorded at fair value at the settlement date. |
Derivative Instruments, Policy | Derivative Instruments We hedge certain portions of our exposure to interest rate risk, foreign currency exchange risk, equity market risk and credit risk by entering into derivative transactions. All of our derivative instruments are recognized as either assets or liabilities on our Consolidated Balance Sheets at estimated fair value. W e categorized derivatives into a three-level hierarchy, based on the priority of the inputs to the respective valuation technique as discussed above in “Fair Value Measurement.” The accounting for changes in the estimated fair value of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship, and further, on the type of hedging relationship. For those derivative instruments that are designated and qualify as hedging instruments, we designate the hedging instrument based upon the exposure being hedged: as a cash flow hedge or a fair value hedge. For derivative instruments that are designated and qualify as a cash flow hedge, the effective portion of the gain or loss on the derivative instrument is reported as a component of A OCI and reclassified into net income in the same period or periods during which the hedged transaction affects net income. The remaining gain or loss on the derivative instrument in excess of the cumulative change in the present value of designated future cash flows of the hedged item (hedge ineffectiveness), if any, is recognized in net income during the period of change. For derivative instruments that are designated and qualify as a fair value hedge, the gain or loss on the derivative instrument, as well as the offsetting gain or loss on the hedged item attributable to the hedged risk are recognized in net income during the period of change in estimated fair values. For derivative instruments not designated as hedging instruments, but that are economic hedges, the gain or loss is recognized in net income. We purchase and issue financial instruments and products that contain embedded derivative instruments. When it is determined that the embedded derivative possesses economic characteristics that are not clearly and closely related to the economic characteristics of the host contract, and a separate instrument with the same terms would qualify as a derivative instrument, the embedded derivative is bifurcated from the host for measurement purposes. The embedded derivative is carried at fair value with changes in fair value recognized in net income during the period of change. We employ several different methods for determining the fair value of our derivative instruments. The fair value of our derivative contracts are measured based on current settlement values, which are based on quoted market prices, industry standard models that are commercially available and broker quotes. These techniques project cash flows of the derivatives using current and implied future market conditions. We calculate the present value of the cash flows to measure the current fair market value of the derivative. |
Cash and Invested Cash, Policy | Cash and Invested Cash Cash and invested cash is carried at cost and includes all highly liquid debt instruments purchased with an original maturity of three months or less. |
DAC, VOBA, DSI and DFEL, Policy | DAC, VOBA, DSI and DFEL Acquisition costs directly related to successful contract acquisitions or renewals of UL insurance, VUL insurance, traditional life insurance, annuities and other investment contracts have been deferred (i.e., DAC) to the extent recoverable. VOBA is an intangible asset that reflects the estimated fair value of in-force contracts in a life insurance company acquisition and represents the portion of the purchase price that is allocated to the value of the right to receive future cash flows from the business in force at the acquisition date. Bonus credits and excess interest for dollar cost averaging contracts are considered DSI. Contract sales charges that are collected in the early years of an insurance contract are deferred (i.e., DFEL), and the unamortized balance is reported in other contract holder funds on our Consolidated Balance Sheets. Both DAC and VOBA amortization, excluding amounts reported in realized gain (loss), is reported within commissions and other expenses on our Consolidated Statements of Comprehensive Income (Loss). DSI amortization, excluding amounts reported in realized gain (loss), is reported in interest credited on our Consolidated Statements of Comprehensive Income (Loss). The amortization of DFEL, excluding amounts reported in realized gain (loss), is reported within fee income on our Consolidated Statements of Comprehensive Income (Loss). The methodology for determining the amortization of DAC, VOBA, DSI and DFEL varies by product type. For all insurance contracts, amortization is based on assumptions consistent with those used in the development of the underlying contract adjusted for emerging experience and expected trends. Acquisition costs for UL and VUL insurance and investment-type products, which include fixed and variable deferred annuities, are generally amortized over the lives of the policies in relation to the incidence of estimated gross profits (“EGPs”) from surrender charges, investment, mortality net of reinsurance ceded and expense margins and actual realized gain (loss) on investments. Contract lives for UL and VUL policies are estimated to be 30 to 40 years based on the expected lives of the contracts. Contract lives for fixed and variable deferred annuities are generally between 15 and 30 years , while some of our fixed multi-year guarantee products have amortization periods equal to the guarantee period. The front-end load annuity product has an assumed life of 25 years. Longer lives are assigned to those blocks that have demonstrated favorable lapse experience. Acquisition costs for all traditional contracts, including traditional life insurance contracts, such as individual whole life, group business and term life insurance, are amortized over the expected premium-paying period that generally results in amortization less than 30 years. Acquisition costs are either amortized on a straight-line basis or as a level percent of premium of the related policies depending on the block of business. There is currently no DAC, VOBA, DSI or DFEL balance or related amortization for fixed and variable payout annuities. We account for modifications of insurance contracts that result in a substantially unchanged contract as a continuation of the replaced contract. We account for modifications of insurance contracts that result in a substantially changed contract as an extinguishment of the replaced contract. The carrying amounts of DAC, VOBA, DSI and DFEL are adjusted for the effects of realized and unrealized gains and losses on securities classified as AFS and certain derivatives and embedded derivatives . Amortization expense of DAC, VOBA, DSI and DFEL reflects an assumption for an expected level of credit-related investment losses. When actual credit-related investment losses are realized, we recognize a true-up to our DAC, VOBA, DSI and DFEL amortization within realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss) reflecting the incremental effect of actual versus expected credit-related investment losses. These actual to expected amortization adjustments can create volatility from period to period in realized gain (loss). During the third quarter of each year, we conduct our annual comprehensive review of the assumptions and the projection models used for our estimates of future gross profits underlying the amortization of DAC, VOBA, DSI and DFEL and the calculations of the embedded derivatives and reserves for life insurance and annuity products. These assumptions include investment margins, mortality, retention, rider utilization and maintenance expenses (costs associated with maintaining records relating to insurance and individual and group annuity contracts, and with the processing of premium collections, deposits, withdrawals and commissions). Based on our review, the cumulative balances of DAC, VOBA, DSI and DFEL included on our Consolidated Balance Sheet s are adjusted with an offsetting benefit or charge to revenue or amortization expense to reflect such change related to our expectations of future EGPs (“unlocking”). We may have unlocking in other quarters as we become aware of information that warrants updating assumptions outside of our annual comprehensive review. We may also identify and implement actuarial modeling refinements that result in increases or decreases to the carrying values of DAC, VOBA, DSI, DFEL, embedded derivatives and reserves for life insurance and annuity products with living benefit and death benefit guarantees. DAC, VOBA, DSI and DFEL are reviewed to ensure that the unamortized portion does not exceed the expected recoverable amounts. |
Reinsurance, Policy | Reinsurance Our insurance companies enter into reinsurance agreements with other companies in the normal course of business. Assets and liabilities and premiums and benefits from certain reinsurance contracts that grant statutory surplus relief to other insurance companies are netted on our Consolidated Balance Sheets and Consolidated Statements of Comprehensive Income (Loss), respectively, because there is a right of offset. All other reinsurance agreements are reported on a gross basis on our Consolidated Balance Sheets as an asset for amounts recoverable from reinsurers or as a component of other liabilities for amounts, such as premiums, owed to the reinsurers, with the exception of Modco agreements for which the right of offset also exists. 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, benefits and DAC are reported net of insurance ceded. |
Goodwill, Policy | Goodwill We recognize the excess of the purchase price, plus the fair value of any noncontrolling interest in the acquiree, over the fair value of identifiable net assets acquired as goodwill. Goodwill is not amortized, but is reviewed at least annually for indications of value impairment, with consideration given to financial performance and other relevant factors . We perform a two-step test in our evaluation of the carrying value of goodwill for each of our reporting units, if qualitative factors determine it is necessary to complete the two-step goodwill impairment test. The results of one test on one reporting unit cannot subsidize the results of another reporting unit. In Step 1 of the evaluation, the fair value of each reporting unit is determined and compared to the carrying value of the reporting unit. If the fair value is greater than the carrying value, then the carrying value of the reporting unit is deemed to be recoverable, and Step 2 is not required. If the fair value estimate is less than the carrying value, it is an indicator that impairment may exist, and Step 2 is required. In Step 2, the implied fair value of goodwill is determined for the reporting unit. The reporting unit’s fair value as determined in Step 1 is assigned to all of its net assets (recognized and unrecognized) as if the reporting unit were acquired in a business combination as of the date of the impairment test. If the implied fair value of the reporting unit’s goodwill is lower than its carrying amount, goodwill is impaired and written down to its fair value; and a charge is reported in impairment of intangibles on our Consolidated Statements of Comprehensive Income (Loss). |
Other Assets and Other Liabilities, Policy | Other Assets and Other Liabilities Other assets consist primarily of DSI, specifically identifiable intangible assets, property and equipment owned by the Company, balances associated with corporate-owned and bank-owned life insurance, certain reinsurance assets, receivables resulting from sales of securities that had not yet settled as of the balance sheet date, debt issue costs , assets under capital leases and other prepaid expenses. Other liabilities consist primarily of current and deferred taxes, pension and other employee benefit liabilities, derivative instrument liabilities, certain reinsurance payables, payables resulting from purchases of securities that had not yet settled as of the balance sheet date, interest on borrowed funds , obligations under capital leases and other accrued expenses. Other assets and other liabilit ies on our Consolidated Balance Sheets include guaranteed living benefit (“ GLB ”) features and remaining guaranteed interest and similar contracts that are carried at fair value, which may be reported in either other assets or other liabilities. The fair value of these ite ms represents approximate exit price including an estimate for our NPR . Certain of these features have elements of both insurance benefits and embedded derivatives. Through our hybrid accounting approach, for reserve calculation purposes we assign product cash flows to the embedded derivative or insurance portion of the reserves based on the life-contingent nature of the benefits. We classify these GLB reserves embedded derivatives in Level 3 within the hierarchy levels described above in “Fair Value Measurement.” We report the insurance portion of the reserves in future contract benefits. The carrying values of specifically identifiable intangible assets are reviewed at least annually for indicators of impairment in value that are other-than-temporary, including unexpected or adverse changes in the following: the economic or competitive environments in which the company operates; profitability analyses; cash flow analyses; and the fair value of the relevant business operation. If there was an indication of impairment, then the discounted cash flow method would be used to measure the impairment, and the carrying value would be adjusted as necessary and reported in impairment of intangibles on our Consolidated Statements of Comprehensive Income (Loss). Sales force intangibles are attributable to the value of the new business distribution system acquired through business combinations. These assets are amortized on a straight-line basis over their useful life of 25 years . Property and equipment owned for company use is carried at cost less allowances for depreciation. Provisions for depreciation of investment real estate and property and equipment owned for company use are computed principally on the straight-line method over the estimated useful lives of the assets, which include buildings, computer hardware and software and other property and equipment. Certain assets on our Consolidated Balance Sheets are related to capital lease s . These assets under capital lease s are depreciated in a manner consistent with our current depreciation policy for owned assets. We periodically review the carrying value of our long-lived assets, including property and equipment, for impairment whenever events or circumstances indicate that the carrying amount of such assets may not be fully recoverable. For long-lived assets to be held and used, impairments are recognized when the carrying amount of a long-lived asset is not recoverable and exceeds its fair value. The carrying amount of a long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. An impairment loss is measured as the amount by which the carrying amount of a long-lived asset exceeds its fair value. Long-lived assets to be disposed of by abandonment or in an exchange for a similar productive long-lived asset are classified as held-for-use until they are disposed. Long-lived assets to be sold are classified as held-for-sale and are no longer depreciated. Certain criteria have to be met in order for the long-lived asset to be classified as held-for-sale, including that a sale is probable and expected to occur within one year. Long-lived assets classified as held-for-sale are recorded at the lower of their carrying amount or fair value less cost to sell. |
Separate Account Assets and Liabilities, Policy | Separate Account Assets and Liabilities We maintain separate account assets, which are reported at fair value. The related liabilities are reported at an amount equivalent to the separate account assets. Investment risks associated with market value changes are borne by the contract holders, except to the extent of minimum guarantees made by the Company with respect to certain accounts. We issue variable annuity contracts through our separate accounts for which investment income and investment gains and losses accrue directly to, and investment risk is borne by, the contract holder (traditional variable annuities). We also issue variable annuity and life contracts through separate accounts that include various types of guaranteed death benefit (“GDB”), guaranteed withdrawal benefit (“GWB”) and guaranteed income benefit (“GIB”) features. The GDB features include those where we contractually guarantee to the contract holder either: return of no less than total deposits made to the contract less any partial withdrawals (“return of net deposits”); total deposits made to the contract less any partial withdrawals plus a minimum return (“minimum return”); or the highest contract value on any contract anniversary date through age 80 . The highest contract value is increased by purchase payments and is decreased by withdrawals subsequent to that anniversary date in the same proportion that withdrawals reduce the contract value. As discussed in Note 6, certain features of these guarantees are accounted for as embedded derivative reserves, whereas other guarantees are accounted for as benefit reserves. Other guarantees contain characteristics of both and are accounted for under an approach that calculates the value of the embedded derivative reserve and the benefit reserve based on the sp ecific characteristics of each GLB feature. We use derivative instruments to hedge our exposure to the risks and earnings volatility that result from the embedded derivatives for living benefits in certain of our variable annuity products. The change in fair value of these instruments tends to move in the opposite direction of the change in the value of the associated reserves. The net impact of these changes is reported as a component of realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). The “market consistent scenarios” used in the determination of the fair value of the GLB liability are similar to those used by an investment bank to value derivatives for which the pricing is not transparent and the aftermarket is nonexistent or illiquid. We use risk-neutral Monte Carlo simulations in our calculation to value the entire block of guarantees, which involve 100 unique scenarios per policy or approximately 49 million scenarios. The market consistent scenario assumptions, as of each valuation date, are those we view to be appropriate for a hypothetical market participant. The market consistent inputs include assumptions for the capital markets (e.g., implied volatilities, correlation among indices, risk-free swap curve, etc.), policyholder behavior (e.g., policy lapse, benefit utilization, mortality, etc.), risk margins, administrative expenses and a margin for profit. We believe these assumptions are consistent with those that would be used by a market participant; however, as the related markets develop we will continue to reassess our assumptions. It is possible that different valuation techniques and assumptions could produce a materially different estimate of fair value. |
Future Contract Benefits and Other Contract Holder Funds, Policy | Future Contract Benefits and Other Contract Holder Funds Future contract benefits represent liability reserves that we have established and carry based on estimates of how much we will need to pay for future benefits and claims. Other contract holder funds represent liabilities for fixed account values, including the fixed portion of variable, dividends payable, premium deposit funds, undistributed earnings on participating business and other contract holder funds as well the carrying value of DFEL discussed above. The liabilities for future contract benefits and claim reserves for UL and VUL insurance policies consist of contract account balances that accrue to the benefit of the contract holders, excluding surrender charges. The liabilities for future insurance contract benefits and claim reserves for traditional life policies are computed using assumptions for investment yields, mortality and withdrawals based principally on generally accepted actuarial methods and assumptions at the time of contract issue. Investment yield assumptions for traditional direct individual life reserves for all contracts range from 2.25% to 7.75% depending on the time of contract issue. The investment yield assumptions for immediate and deferred paid-up annuities range from 1.50% to 13.50% . These investment yield assumptions are intended to represent an estimation of the interest rate experience for the period that these contract benefits are payable. The liabilities for future claim reserves for variable annuity products containing GDB features are calculated by estimating the present value of total expected benefit payments over the life of the contract from inception divided by the present value of total expected assessments over the life of the contract (“benefit ratio”) multiplied by the cumulative assessments recorded from the contract inception through the balance sheet date less the cumulative GDB payments plus interest on the liability. The change in the liability for a period is the benefit ratio multiplied by the assessments recorded for the period less GDB claims paid in the period plus interest. As experience or assumption changes result in a change in expected benefit payments or assessments, the benefit ratio is unlocked, that is, recalculated using the updated expected benefit payments and assessments over the life of the contract since inception. The revised benefit ratio is then applied to the liability calculation described above, with the resulting change in liability reported in benefits on our Consolidated Statements of Comprehensive Income (Loss). With respect to our future contract benefits and other contract holder funds , we continually review overall reserve position, reserving techniques and reinsurance arrangements. As experience develops and new information becomes known, liabilities are adjusted as deemed necessary. The effects of changes in estimates are included in the operating results for the period in which such changes occur. The business written or assumed by us includes participating life insurance contracts, under which the contract holder is entitled to share in the earnings of such contracts via receipt of dividends. The dividend scale for participating policies is reviewed annually and may be adjusted to reflect recent experience and future expectations. As of December 31, 2015 and 2014 , participating policies comprised approximately 1 % of the face amount of business in force, and dividend expenses were $67 million , $6 4 million and $ 62 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. Liabilities for the secondary guarantees on UL-type products are calculated by multiplying the benefit ratio by the cumulative assessments recorded from contract inception through the balance sheet date less the cumulative secondary guarantee benefit payments plus interest. If experience or assumption changes result in a new benefit ratio, the reserves are adjusted to reflect the changes in a manner similar to the unlocking of DAC, VOBA, DFEL and DSI. The accounting for secondary guarantee benefits impacts, and is impacted by, EGPs used to calculate amortization of DAC, VOBA, DFEL and DSI. Certain of our variable annuity contracts reported within future contract benefits contain GLB reserves embedded derivatives, a portion of which may be reported in either other assets or other liabilities, and include guaranteed interest and similar contracts, that are carried at fair value on our Consolidated Balance Sheets , whi ch represents approximate exit price including an estimate for our NPR . Certain of these features have elements of both insurance benefits and embedded derivatives. Through our hybrid accounting approach, for reserve calculation purposes we assign product cash flows to the embedded derivative or insurance portion of the reserves based on the life-contingent nature of the benefits. We classify these GLB reserves embedded derivatives items in Level 3 within the hierarchy levels described above in “Fair Value Measurement.” We report the insurance portion of the reserves in future contract benefits. The fair value of our indexed annuity contracts is based on their approximate surrender values. |
Borrowed Funds, Policy | Borrowed Funds LNC’s short-term borrowings are defined as borrowings with contractual or expected maturities of one year or less. Long-term borrowings have contractual or expected maturities greater than one year. |
Deferred Gain on Business Sold Through Reinsurance, Policy | Deferred Gain on Business Sold Through Reinsurance Our reinsurance operations were acquired by Swiss Re Life & Health America, Inc. (“Swiss Re”) in December 2001 through a series of indemnity reinsurance transactions. We are recognizing the gain related to these transactions at the rate that earnings on the reinsured business are expected to emerge, over a period of 15 years from the date of sale. |
Contingencies and Commitments, Policy | Contingencies and Commitments Contingencies arising from environmental remediation costs, regulatory judgments, claims, assessments, guarantees, litigation, recourse reserves, fines, penalties and other sources are recorded when deemed probable and reasonably estimable. |
Fee Income, Policy | Fee Income Fee income for investment and interest-sensitive life insurance contracts consist of asset-based fees, cost of insurance charges, percent of premium charges, contract administration charges and surrender charges that are assessed against contract holder account balances. Investment products consist primarily of individual and group variable and fixed deferred annuities. Interest-sensitive life insurance products include UL insurance, VUL insurance and other interest-sensitive life insurance policies. These products include life insurance sold to individuals, corporate-owned life insurance and bank-owned life insurance. In bifurcating the embedded derivative of our GLB features on our variable annuity products, we attribute to the embedded derivative the portion of total fees collected from the contract holder that relate to the GLB riders (the “attributed fees”), which are not reported within fee income on our Consolidated Statements of Comprehensive Income (Loss). These attributed fees represent the present value of future claims expected to be paid for the GLB at the inception of the contract plus a margin that a theoretical market participant would include for risk/profit and are reported within realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). The timing of revenue recognition as it relates to fees assessed on investment contracts is determined based on the nature of such fees. Asset-based fees, cost of insurance and contract administration charges are assessed on a daily or monthly basis and recognized as revenue when assessed and earned. Percent of premium charges are assessed at the time of premium payment and recognized as revenue when assessed and earned. Certain amounts assessed that represent compensation for services to be provided in future periods are reported as unearned revenue and recognized in income over the periods benefited. Surrender charges are recognized upon surrender of a contract by the contract holder in accordance with contractual terms. For investment and interest-sensitive life insurance contracts, the amounts collected from contract holders are considered deposits and are not included in revenue. |
Insurance Premiums, Policy | Insurance Premiums Our insurance premiums for traditional life insurance and group insurance products are recognized as revenue when due from the contract holder. Our traditional life insurance products include those products with fixed and guaranteed premiums and benefits and consist primarily of whole life insurance, limited-payment life insurance, term life insurance and certain annuities with life contingencies. Our group non-medical insurance products consist primarily of term life, disability and dental. |
Net Investment Income, Policy | Net Investment Income Dividends and interest income, recorded in net investment income, are recognized when earned. Amortization of premiums and accretion of discounts on investments in debt securities are reflected in net investment income over the contractual terms of the investments in a manner that produces a constant effective yield. For C LO s and MBS, included in the trading and AFS fixed maturity securities portfolios, we recognize income using a constant effective yield based on anticipated prepayments and the estimated economic life of the securities. When actual prepayments differ significantly from originally anticipated prepayments, the retrospective effective yield is recalculated to reflect actual payments to date and a catch up adjustment is recorded in the current period. In addition, the new effective yield, which reflects anticipated future payments, is used prospectively. Any adjustments resulting from changes in effective yield are reflected in net investment income on our Consolidated Statements of Comprehensive Income (Loss). |
Realized Gain (Loss), Policy | Realized Gain (Loss) Realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss) includes realized gains and losses from the sale of investments, write-downs for other-than-temporary impairments of investments, certain derivative and embedded derivative gains and losses, gains and losses on the sale of subsidiaries and businesses and net gains and losses on reinsurance embedded derivative s and trading securities. Realized gains and losses on the sale of investments are determined using the specific identification method. Realized gain (loss) is recognized in net income, net of associated amortization of DAC, VOBA, DSI and DFEL. Realized gain (loss) is also net of allocations of investment gains and losses to certain contract holders and certain funds withheld on reinsurance arrangements for which we have a contractual obligation. |
Other Revenues, Policy | Other Revenues Other revenues consists primarily of fees attributable to broker-dealer services recorded as earned at the time of sale, changes in the market value of our seed capital investments , proceeds from reinsurance recaptures and communications sales recognized as earned, net of agency and representative commissions. |
Interest Credited, Policy | Interest Credited Interest credited includes interest credited to contract holder account balances. Interest crediting rates associated with funds invested in the general account of LNC’s insurance subsidiaries during 2013 through 2015 ranged from 1% to 10% . |
Benefits, Policy | Benefits Benefits for UL and other interest-sensitive life insurance products include benefit claims incurred during the period in excess of contract account balances. Benefits also include the change in reserves for life insurance products with secondary guarantee benefits, annuity products with guaranteed death and living benefits and certain annuities with life contingencies. For traditional life, group health and disability income products, benefits are recognized when incurred in a manner consistent with the related premium recognition policies. |
Pensions and Other Post Retirement Benefit Plans, Policy | Pension and Other Postretirement Benefit Plans Pursuant to the accounting rules for our obligations to employees and agents under our various pension and other postretirement benefit plans, we are required to make a number of assumptions to estimate related liabilities and expenses. The mortality assumption is based on actual and anticipated plan experience, determined using acceptable actuarial methods. We use assumptions for the weighted-average discount rate and expected return on plan assets to estimate pension expense. The discount rate assumptions are determined using an analysis of current market information and the projected benefit flows associated with these plans. The expected long-term rate of return on plan assets is based on historical and projected future rates of return on the funds invested in the plan. The calculation of our accumulated postretirement benefit obligation also uses an assumption of weighted-average annual rate of increase in the per capita cost of covered benefits, which reflects a health care cost trend rate. |
Stock-Based Compensation, Policy | Stock-Based Compensation In general, we expense the fair value of stock awards included in our incentive compensation plans. As of the date our stock awards are approved, the fair value of stock options is determined using a Black-Scholes options valuation methodology, and the fair value of other stock awards is based upon the market value of the stock. The fair value of the awards is expensed over the performance or service period, which generally corresponds to the vesting period, and is recognized as an increase to common stock in stockholders’ equity. We classify certain stock awards as liabilities. For these awards, the settlement value is classified as a liability on our Consolidated Balance Sheets , and the liability is marked-to-market through net income at the end of each reporting period. Stock-based compensation expense is reflected in commissions and other expenses on our Consolidated Statements of Comprehensive Income (Loss). |
Interest and Debt Expense, Policy | Interest and Debt Expense Interest expense on our short-term and long-term debt is recognized as due and any associated premiums, discounts and costs are amortized (accreted) over the term of the related borrowing utilizing the effective interest method. In addition, gains or losses related to certain derivative instruments associated with debt are recognized in interest and debt expense during the period of the change. |
Income Taxes, Policy | Income Taxes We file a U.S. consolidated income tax return that includes all of our eligible subsidiaries. Ineligible subsidiaries file separate individual corporate tax returns. Subsidiaries operating outside of the U.S. are taxed, and income tax expense is recorded based on applicable foreign statutes. Deferred income taxes are recognized, based on enacted rates, when assets and liabilities have different values for financial statement and tax reporting purposes. A valuation allowance is recorded to the extent required. Considerable judgment and the use of estimates are required in determining whether a valuation allowance is necessary and, if so, the amount of such valuation allowance. In evaluating the need for a valuation allowance, we consider many factors, including: the nature and character of the deferred tax assets and liabilities; taxable income in prior carryback years; future reversals of temporary differences; the length of time carryovers can be utilized; and any tax planning strategies we would employ to avoid a tax benefit from expiring unused. |
Discontinued Operations, Policy | Discontinued Operations The results of operations of a component of the Company that either has been disposed of or is classified as held-for-sale are reported in income (loss) from discontinued operations, net of federal income taxes, if the disposal represents a strategic shift that has, or will have, a major effect on our consolidated financial condition and results of operations. |
Foreign Currency Translation, Policy | Foreign Currency Translation The balance sheet accounts and income statement items of foreign subsidiaries, reported in functional currencies other than the U.S. dollar are translated at the current and average exchange rates for the year, respectively. Resulting translation adjustments and other translation adjustments for foreign currency transactions that affect cash fl ows are reported in A OCI, a component of stockholders’ equity. |
Earnings Per Share, Policy | Earnings Per Share Basic earnings per share (“EPS”) is computed by dividing earnings available to common shareholders by the average common shares outstanding. Diluted EPS is computed assuming the conversion or exercise of dilutive convertible preferred securities, nonvested stock, stock options, performance share units and warrants outstanding during the year. Our deferred compensation plans allow participants the option to diversify from LNC stock to other investment alternatives. When calculating our weighted-average dilutive shares, we presume the investment option will be settled in cash and exclude these shares from our calculation, unless the effect of settlement in shares would be more dilutive to our diluted EPS calculation. For any period where a loss from continuing operations is experienced, shares used in the diluted EPS calculation represent basic shares because using diluted shares would be anti-dilutive to the calculation. |
Variable Interest Entities ("36
Variable Interest Entities ("VIE's") (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Variable Interest Entities [Abstract] | |
CLN Structures Summary Information | Amount and Date of Issuance $400 $200 December April 2006 2007 Original attachment point (subordination) 5.50% 2.05% Current attachment point (subordination) 4.21% 1.48% Maturity 12/20/2016 3/20/2017 Current rating of tranche BBB+ BB Current rating of underlying reference obligations AA - B AAA - CCC Number of defaults in underlying reference obligations 3 2 Number of entities 123 99 Number of countries 20 21 |
CLN Structures' Underlying Collateral By Industry And Rating | AAA AA A BBB BB B CCC Total Industry Financial intermediaries 0.0% 2.1% 5.4% 3.0% 0.0% 0.0% 0.0% 10.5% Telecommunications 0.0% 0.0% 2.4% 7.2% 0.9% 0.5% 0.0% 11.0% Oil and gas 0.3% 2.1% 1.0% 3.4% 1.2% 0.0% 0.0% 8.0% Utilities 0.0% 0.0% 1.6% 3.0% 0.0% 0.0% 0.0% 4.6% Chemicals and plastics 0.0% 0.0% 2.3% 1.2% 0.3% 0.0% 0.0% 3.8% Drugs 0.3% 1.6% 1.8% 0.0% 0.0% 0.0% 0.0% 3.7% Retailers (except food and drug) 0.0% 0.0% 2.1% 0.9% 0.5% 0.0% 0.0% 3.5% Industrial equipment 0.0% 0.0% 2.1% 0.7% 0.0% 0.0% 0.0% 2.8% Sovereign 0.0% 1.2% 1.0% 0.7% 0.3% 0.0% 0.0% 3.2% Conglomerates 0.0% 2.3% 0.9% 0.0% 0.0% 0.0% 0.0% 3.2% Forest products 0.0% 0.0% 0.5% 1.1% 1.4% 0.0% 0.0% 3.0% Other 0.0% 4.1% 13.8% 18.2% 5.6% 0.7% 0.3% 42.7% Total 0.6% 13.4% 34.9% 39.4% 10.2% 1.2% 0.3% 100.0% |
Consolidated Variable Interest Entity Asset and Liability information | As of December 31, 2015 As of December 31, 2014 Number Number of Notional Carrying of Notional Carrying Instruments Amounts Value Instruments Amounts Value Assets Fixed maturity securities: Asset-backed credit card loans N/A $ - $ 598 N/A $ - $ 598 Total return swap 1 479 - 1 423 - Total assets (1) 1 $ 479 $ 598 1 $ 423 $ 598 Liabilities Non-qualifying hedges: Credit default swaps 2 $ 600 $ 4 2 $ 600 $ 13 Contingent forwards 2 - - 2 - - Total liabilities (2) 4 $ 600 $ 4 4 $ 600 $ 13 (1) Reported in variable interest entities’ fixed maturity securities on our Consolidated Balance Sheets. (2) Reported in variable interest entities’ liabilities on our Consolidated Balance Sheets. |
Consolidated Variable Interest Entity Settlement Payments and Mark-to-Market Adjustments | For the Years Ended December 31, 2015 2014 Non-Qualifying Hedges Credit default swaps $ 9 $ 14 Contingent forwards - - Total non-qualifying hedges (1) $ 9 $ 14 (1) Reported in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss ). |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Investments [Abstract] | |
Reconciliation Of Available-For-Sale Securities From Cost Basis To Fair Value | As of December 31, 2015 Amortized Gross Unrealized Fair Cost Gains Losses OTTI (1) Value Fixed maturity securities: Corporate bonds $ 70,993 $ 3,924 $ 1,984 $ 2 $ 72,931 ABS 1,064 41 17 (13 ) 1,101 U.S. government bonds 386 45 2 - 429 Foreign government bonds 464 61 1 - 524 RMBS 3,566 186 36 (12 ) 3,728 CMBS 364 10 2 (4 ) 376 CLOs 588 1 3 (3 ) 589 State and municipal bonds 3,806 686 12 - 4,480 Hybrid and redeemable preferred securities 762 88 44 - 806 VIEs’ fixed maturity securities 596 2 - - 598 Total fixed maturity securities 82,589 5,044 2,101 (30 ) 85,562 Equity securities 226 17 6 - 237 Total AFS securities $ 82,815 $ 5,061 $ 2,107 $ (30 ) $ 85,799 As of December 31, 2014 Amortized Gross Unrealized Fair Cost Gains Losses OTTI (1) Value Fixed maturity securities: Corporate bonds $ 67,153 $ 6,711 $ 443 $ 5 $ 73,416 ABS 1,087 56 20 (7 ) 1,130 U.S. government bonds 379 56 - - 435 Foreign government bonds 473 68 - - 541 RMBS 3,979 242 14 (19 ) 4,226 CMBS 554 23 1 6 570 CLOs 375 - 2 (2 ) 375 State and municipal bonds 3,723 874 4 - 4,593 Hybrid and redeemable preferred securities 886 108 40 - 954 VIEs’ fixed maturity securities 587 11 - - 598 Total fixed maturity securities 79,196 8,149 524 (17 ) 86,838 Equity securities 216 15 - - 231 Total AFS securities $ 79,412 $ 8,164 $ 524 $ (17 ) $ 87,069 (1) Includes unrealized gains and losses on impaired securities related to changes in the fair value of such securities subsequent to the impairment measurement date. |
Available-For-Sale Securities By Contractual Maturities | Amortized Fair Cost Value Due in one year or less $ 2,602 $ 2,637 Due after one year through five years 18,144 18,972 Due after five years through ten years 20,211 20,152 Due after ten years 35,454 37,409 Subtotal 76,411 79,170 Structured securities (ABS, MBS, CLOs) 6,178 6,392 Total fixed maturity AFS securities $ 82,589 $ 85,562 |
Fair Value And Gross Unrealized Losses In A Continuous Unrealized Loss Position | As of December 31, 2015 Less Than or Equal Greater Than to Twelve Months Twelve Months Total Gross Gross Gross Unrealized Unrealized Unrealized Fair Losses and Fair Losses and Fair Losses and Value OTTI Value OTTI Value OTTI Fixed maturity securities: Corporate bonds $ 20,380 $ 1,364 $ 2,383 $ 623 $ 22,763 $ 1,987 ABS 213 4 274 29 487 33 U.S. government bonds 15 2 - - 15 2 Foreign government bonds 37 1 - - 37 1 RMBS 627 21 371 22 998 43 CMBS 116 2 11 2 127 4 CLOs 271 2 49 1 320 3 State and municipal bonds 129 8 27 4 156 12 Hybrid and redeemable preferred securities 38 1 148 43 186 44 Total fixed maturity securities 21,826 1,405 3,263 724 25,089 2,129 Equity securities 47 6 - - 47 6 Total AFS securities $ 21,873 $ 1,411 $ 3,263 $ 724 $ 25,136 $ 2,135 Total number of AFS securities in an unrealized loss position 2,007 As of December 31, 2014 Less Than or Equal Greater Than to Twelve Months Twelve Months Total Gross Gross Gross Unrealized Unrealized Unrealized Fair Losses and Fair Losses and Fair Losses and Value OTTI Value OTTI Value OTTI Fixed maturity securities: Corporate bonds $ 4,799 $ 207 $ 4,465 $ 244 $ 9,264 $ 451 ABS 91 2 323 41 414 43 RMBS 447 7 241 14 688 21 CMBS 121 1 19 10 140 11 CLOs 110 1 70 1 180 2 State and municipal bonds 6 - 26 4 32 4 Hybrid and redeemable preferred securities 31 - 176 40 207 40 Total fixed maturity securities 5,605 218 5,320 354 10,925 572 Equity securities 37 1 - - 37 1 Total AFS securities $ 5,642 $ 219 $ 5,320 $ 354 $ 10,962 $ 573 Total number of AFS securities in an unrealized loss position 1,019 |
Schedule Of Available-For-Sale Securites Whose Value Is Below Amortized Cost | As of December 31, 2015 Number Fair Gross Unrealized of Value Losses OTTI Securities (1) Less than six months $ 1,584 $ 701 $ 2 138 Six months or greater, but less than nine months 76 85 - 19 Nine months or greater, but less than twelve months 39 38 - 2 Twelve months or greater 153 83 15 60 Total $ 1,852 $ 907 $ 17 219 As of December 31, 2014 Number Fair Gross Unrealized of Value Losses OTTI Securities (1) Less than six months $ 48 $ 19 $ - 12 Six months or greater, but less than nine months 8 7 - 3 Twelve months or greater 242 97 33 82 Total $ 298 $ 123 $ 33 97 (1) We may reflect a security in more than one aging category based on various purchase dates. |
Schedule Of Changes In Amount Of Credit Losses Of OTTI Recognized In Net Income (Loss) | For the Years Ended December 31, 2015 2014 2013 Balance as of beginning-of-year $ 380 $ 404 $ 424 Increases attributable to: Credit losses on securities for which an OTTI was not previously recognized 19 4 39 Credit losses on securities for which an OTTI was previously recognized 16 16 43 Decreases attributable to: Securities sold, paid down or matured (33 ) (44 ) (102 ) Balance as of end-of-year $ 382 $ 380 $ 404 |
Schedule of Details Of The Amount Of Credit Losses Of OTTI Recognized In Net Income (Loss) | As of December 31, 2015 Net Unrealized OTTI in Amortized Gain/(Loss) Fair Credit Cost Position Value Losses Corporate bonds $ 31 $ (2 ) $ 29 $ 28 ABS 199 13 212 108 RMBS 365 12 377 193 CMBS 34 4 38 48 CLOs 11 3 14 5 Total $ 640 $ 30 $ 670 $ 382 As of December 31, 2014 Net Unrealized OTTI in Amortized Gain/(Loss) Fair Credit Cost Position Value Losses Corporate bonds $ 38 $ (5 ) $ 33 $ 20 ABS 221 7 228 103 RMBS 447 19 466 190 CMBS 46 (6 ) 40 62 CLOs 11 2 13 5 Total $ 763 $ 17 $ 780 $ 380 |
Trading Securities (and Certain Trading Assets) [Table Text Block] | As of December 31, 2015 2014 Fixed maturity securities: Corporate bonds $ 1,416 $ 1,528 ABS 25 32 U.S. government bonds 221 278 Foreign government bonds 25 25 RMBS 104 135 CMBS 4 4 CLOs 10 9 State and municipal bonds 18 22 Hybrid and redeemable preferred securities 31 32 Total trading securities $ 1,854 $ 2,065 |
Composition Of Current And Past Due Mortgage Loans On Real Estate | As of December 31, 2015 2014 Current $ 8,677 $ 7,565 60 to 90 days past due - - Greater than 90 days past due - 8 Valuation allowance associated with impaired mortgage loans on real estate (2 ) (3 ) Unamortized premium (discount) 3 4 Total carrying value $ 8,678 $ 7,574 |
Schedule Of Impaired Mortgage Loans | As of December 31, 2015 2014 Number of impaired mortgage loans on real estate 2 3 Principal balance of impaired mortgage loans on real estate $ 8 $ 26 Valuation allowance associated with impaired mortgage loans on real estate (2 ) (3 ) Carrying value of impaired mortgage loans on real estate $ 6 $ 23 |
Schedule of changes in the valuation allowance associated with impaired mortgage loans on real estate | As of December 31, 2015 2014 2013 Balance as of beginning-of-year $ 3 $ 3 $ 21 Additions - - 3 Charge-offs, net of recoveries (1 ) - (21 ) Balance as of end-of-year $ 2 $ 3 $ 3 |
Schedule Of Average Carrying Value Of Impaired Mortgage Loans | For the Years Ended December 31, 2015 2014 2013 Average carrying value for impaired mortgage loans on real estate $ 17 $ 24 $ 34 Interest income recognized on impaired mortgage loans on real estate 1 2 2 Interest income collected on impaired mortgage loans on real estate 1 2 2 |
Credit Quality Indicators For Mortgage Loans | As of December 31, 2015 As of December 31, 2014 Debt- Debt- Service Service Carrying % of Coverage Carrying % of Coverage Loan-to-Value Ratio Value Total Ratio Value Total Ratio Less than 65% $ 7,718 88.9% 2.06 $ 6,596 87.1% 1.90 65% to 74% 653 7.5% 1.60 631 8.3% 1.55 75% to 100% 301 3.5% 0.83 316 4.2% 0.77 Greater than 100% 6 0.1% 1.05 31 0.4% 0.77 Total mortgage loans on real estate $ 8,678 100.0% $ 7,574 100.0% |
Net Investment Income | For the Years Ended December 31, 2015 2014 2013 Fixed maturity AFS securities $ 4,079 $ 4,041 $ 3,976 Equity AFS securities 9 9 6 Trading securities 107 125 137 Mortgage loans on real estate 395 378 388 Real estate 4 7 13 Policy loans 152 155 155 Invested cash 3 2 3 Commercial mortgage loan prepayment and bond make-whole premiums 105 138 117 Alternative investments 88 130 86 Consent fees 5 2 4 Other investments 5 (11 ) (9 ) Investment income 4,952 4,976 4,876 Investment expense (125 ) (117 ) (122 ) Net investment income $ 4,827 $ 4,859 $ 4,754 |
Realized Gain (Loss) Related To Certain Investments | For The Years Ended December 31, 2015 2014 2013 Fixed maturity AFS securities: (1) Gross gains $ 43 $ 29 $ 21 Gross losses (99 ) (23 ) (94 ) Equity AFS securities: Gross gains 3 5 8 Gross losses - - (2 ) Gain (loss) on other investments (9 ) 3 (3 ) Associated amortization of DAC, VOBA, DSI and DFEL and changes in other contract holder funds (26 ) (32 ) (28 ) Total realized gain (loss) related to certain investments, pre-tax $ (88 ) $ (18 ) $ (98 ) (1) These amounts are represented net of related fair value hedging activity. See Note 6 for more information. |
OTTI Recognized In Net Income (Loss) And OCI | For the Years Ended December 31, 2015 2014 2013 OTTI Recognized in Net Income (Loss) Fixed maturity securities: Corporate bonds $ (45 ) $ (1 ) $ (16 ) ABS (7 ) (10 ) (20 ) RMBS (7 ) (8 ) (31 ) CMBS (1 ) (1 ) (15 ) Total fixed maturity securities (60 ) (20 ) (82 ) Equity securities - - (1 ) Gross OTTI recognized in net income (loss) (60 ) (20 ) (83 ) Associated amortization of DAC, VOBA, DSI and DFEL 6 4 13 Net OTTI recognized in net income (loss), pre-tax $ (54 ) $ (16 ) $ (70 ) Portion of OTTI Recognized in OCI Gross OTTI recognized in OCI $ 30 $ 12 $ 11 Change in DAC, VOBA, DSI and DFEL (4 ) (2 ) (1 ) Net portion of OTTI recognized in OCI, pre-tax $ 26 $ 10 $ 10 |
Payables For Collateral On Investments | As of December 31, 2015 As of December 31, 2014 Carrying Fair Carrying Fair Value Value Value Value Collateral payable for derivative investments (1) $ 1,387 $ 1,387 $ 1,673 $ 1,673 Securities pledged under securities lending agreements (2) 242 231 204 196 Securities pledged under repurchase agreements (3) 673 739 607 666 Investments pledged for Federal Home Loan Bank of Indianapolis (“FHLBI”) (4) 2,355 3,391 1,925 3,151 Total payables for collateral on investments $ 4,657 $ 5,748 $ 4,409 $ 5,686 (1) We obtain collateral based upon contractual provisions with our counterparties. These agreements take into consideration the counterparties’ credit rating as compared to ours, the fair value of the derivative investments and specified thresholds that if exceeded result in the receipt of cash that is typically invested in cash and invested cash. See Note 6 for additional information. (2) Our pledged securities under securities lending agreements are included in fixed maturity AFS securities on our Consolidated Balance Sheets. We generally obtain collateral in an amount equal to 102 % and 105 % of the fair value of the domestic and foreign securities, respectively. We value collateral daily and obtain additional collateral when deemed appropriate. The cash received in our securities lending program is typically invested in cash and invested cash or fixed maturity AFS securities. (3) Our pledged securities under repurchase agreements are included in fixed maturity AFS securities on our Consolidated Balance Sheets. We obtain collateral in an amount equal to 95 % of the fair value of the securities, and our agreements with third parties contain contractual provisions to allow for additional collateral to be obtained when necessary. The cash received in our repurchase program is typically invested in fixed maturity AFS securities. (4) Our pledged investments for FHLBI are included in fixed maturity AFS securities and mortgage loans on real estate on our Consolidated Balance Sheets. The collateral requirements are generally 105 % to 115 % of the fair value for fixed maturity AFS securities and 155 % to 175 % of the fair value for mortgage loans on real estate. The cash received in these transactions is primarily invested in cash and invested cash or fixed maturity AFS securities. |
Schedule Of Increase (Decrease) In Payables For Collateral On Investments | For the Years Ended December 31, 2015 2014 2013 Collateral payable for derivative investments $ (286 ) $ 1,035 $ (1,929 ) Securities pledged under securities lending agreements 38 20 (13 ) Securities pledged under repurchase agreements 66 77 250 Securities pledged for Term Asset-Backed Securities Loan Facility - (36 ) (1 ) Investments pledged for FHLBI 430 75 750 Total increase (decrease) in payables for collateral on investments $ 248 $ 1,171 $ (943 ) |
Schedule Of Securities Pledged By Contractual Maturity | As of December 31, 2015 Overnight and Continuous Up to 30 Days 30 – 90 Days Greater Than 90 Days Total Repurchase Agreements RMBS $ - $ - $ - $ 250 $ 250 Corporate bonds - - 275 148 423 Total - - 275 398 673 Securities Lending Corporate bonds 242 - - - 242 Foreign government bonds - - - - - Total 242 - - - 242 Total secured borrowings $ 242 $ - $ 275 $ 398 $ 915 Gross amount of recognized liabilities for repurchase agreements and securities lending: $ 914 Amounts related to agreements not included in offsetting disclosures: $ - |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments [Abstract] | |
Outstanding Derivative Instruments With Off-Balance-Sheet Risks | As of December 31, 2015 As of December 31, 2014 Notional Fair Value Notional Fair Value Amounts Asset Liability Amounts Asset Liability Qualifying Hedges Cash flow hedges: Interest rate contracts (1) $ 2,937 $ 192 $ 46 $ 3,554 $ 408 $ 198 Foreign currency contracts (1) 910 84 2 642 45 21 Total cash flow hedges 3,847 276 48 4,196 453 219 Fair value hedges: Interest rate contracts (1) 1,529 269 198 875 259 - Non-Qualifying Hedges Interest rate contracts (1) 71,898 1,088 330 54,401 989 342 Foreign currency contracts (1) 74 - - 68 - - Equity market contracts (1) 27,882 680 269 24,310 886 243 Credit contracts (2) 103 - 9 126 - 3 Embedded derivatives: GLB reserves (2) - - 953 - - 174 Reinsurance related (3) - - 87 - - 150 Indexed annuity and IUL contracts (4) - - 1,100 - - 1,170 Total derivative instruments $ 105,333 $ 2,313 $ 2,994 $ 83,976 $ 2,587 $ 2,301 (1) Reported in derivative investments and other liabilities on our Consolidated Balance Sheets. (2) Reported in other liabilities on our Consolidated Balance Sheets. (3) Reported in reinsurance related embedded derivatives on our Consolidated Balance Sheets. (4) Reported in future contract benefits on our Consolidated Balance Sheets . |
Maturity Of The Notional Amounts Of Derivative Financial Instruments | Remaining Life as of December 31, 2015 Less Than 1 – 5 6 – 10 11 – 30 Over 30 1 Year Years Years Years Years Total Interest rate contracts (1) $ 10,408 $ 32,704 $ 18,554 $ 13,485 $ 1,213 $ 76,364 Foreign currency contracts (2) 104 138 334 408 - 984 Equity market contracts 18,048 6,796 2,753 18 267 27,882 Credit contracts 45 58 - - - 103 Total derivative instruments with notional amounts $ 28,605 $ 39,696 $ 21,641 $ 13,911 $ 1,480 $ 105,333 (1) As of December 31, 201 5 , the latest maturity date for which we were hedging our exposure to the variability in future cash flows for these instruments was April 2067 . (2) As of December 31, 201 5 , the latest maturity date for which we were hedging our exposure to the variability in future cash flows for these instruments was December 2045 . |
Change In Our Unrealized Gain On Derivative Instruments In Accumulated OCI | For the Years Ended December 31, 2015 2014 2013 Unrealized Gain (Loss) on Derivative Instruments Balance as of beginning-of-year $ 139 $ 256 $ 163 Other comprehensive income (loss): Unrealized holding gains (losses) arising during the period: Cash flow hedges: Interest rate contracts (258 ) (286 ) 167 Foreign currency contracts 17 36 (24 ) Change in foreign currency exchange rate adjustment 48 50 (19 ) Change in DAC, VOBA, DSI and DFEL 2 2 5 Income tax benefit (expense) 66 69 (45 ) Less: Reclassification adjustment for gains (losses) included in net income (loss): Cash flow hedges: Interest rate contracts (1) (190 ) (22 ) (21 ) Interest rate contracts (2) 1 3 3 Foreign currency contracts (1) 6 - 3 Associated amortization of DAC, VOBA, DSI and DFEL 1 1 1 Income tax benefit (expense) 64 6 5 Balance as of end-of-year $ 132 $ 139 $ 256 (1) The OCI offset is reported within net investment income on our Consolidated Statements of Comprehensive Income (Loss). (2) The OCI offset is reported within interest and debt expense on our Consolidated Statements of Comprehensive Income (Loss). |
Gains (Losses) On Derivative Instruments Recorded Within Income (Loss) From Continuing Operations | For the Years Ended December 31, 2015 2014 2013 Qualifying Hedges Cash flow hedges: Interest rate contracts (1) $ 8 $ (22 ) $ (21 ) Interest rate contracts (2) 1 - - Foreign currency contracts (1) 6 - 3 Total cash flow hedges 15 (22 ) (18 ) Fair value hedges: Interest rate contracts (1) (30 ) - - Interest rate contracts (2) 32 35 36 Interest rate contracts (3) (198 ) - - Total fair value hedges (196 ) 35 36 Non-Qualifying Hedges Interest rate contracts (3) 304 1,303 (989 ) Foreign currency contracts (3) (11 ) (8 ) (4 ) Equity market contracts (3) (118 ) (215 ) (1,306 ) Equity market contracts (4) 1 11 38 Credit contracts (3) (6 ) (1 ) 9 Embedded derivatives: GLB reserves (3) (779 ) (1,391 ) 2,153 Reinsurance related (3) 63 (42 ) 107 Indexed annuity and IUL contracts (3) (57 ) (210 ) (356 ) Total derivative instruments $ (784 ) $ (540 ) $ (330 ) (1) Reported in net investment income on our Consolidated Statements of Comprehensive Income (Loss). (2) Reported in interest and debt expense on our Consolidated Statements of Comprehensive Income (Loss). (3) Reported in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). (4) Reported in commissions and other expenses on our Consolidated Statements of Comprehensive Income (Loss). |
Gains (Losses) On Derivative Instruments Designated As Cash Flow Hedges | For the Years Ended December 31, 2015 2014 2013 Offset to net investment income $ 14 (22 ) (19 ) Offset to interest and debt expense 1 4 4 |
Open Credit Default Swap Liabilities | As of December 31, 2015 Credit Reason Nature Rating of Number Maximum for of Underlying of Fair Potential Maturity Entering Recourse Obligation (1) Instruments Value (2) Payout 12/20/2016 (3) (4) (5) BBB- 2 $ (2 ) $ 45 3/20/2017 (3) (4) (5) BBB- 3 (7 ) 58 5 $ (9 ) $ 103 As of December 31, 2014 Credit Reason Nature Rating of Number Maximum for of Underlying of Fair Potential Maturity Entering Recourse Obligation (1) Instruments Value (2) Payout 12/20/2016 (3) (4) (5) BBB- 3 $ (2 ) $ 68 3/20/2017 (3) (4) (5) BBB- 3 (1 ) 58 6 $ (3 ) $ 126 (1) Represents average credit ratings based on the midpoint of the applicable ratings among Moody' s , S& P and Fitch Ratings, as scaled to the corresponding S&P ratings. (2) Broker quotes are used to determine the market value of our credit default swaps. (3) These credit defau lt swaps were sold to a counter party of the consolidated VIEs discussed in Note 4 . (4) Credit default swaps were entered into in order to generate income by providing default protection in return for a quarterly payment. (5) Sellers do not have the right to demand indemnification or compensation from third parties in case of a loss (payment) on the contract. |
Collateral Support Agreements | As of December 31, 2015 2014 Maximum potential payout $ 103 $ 126 Less: Counterparty thresholds - - Maximum collateral potentially required to post $ 103 $ 126 |
Schedule Of Collateral Amounts With Rights To Reclaim Or Obligation To Return Cash | As of December 31, 2015 As of December 31, 2014 Collateral Collateral Collateral Collateral Posted by Posted by Posted by Posted by S&P Counter- LNC Counter- LNC Credit Party (Held by Party (Held by Rating of (Held by Counter- (Held by Counter- Counterparty LNC) Party) LNC) Party) AA- $ 92 $ - $ 64 $ - A+ 67 - 47 - A 866 (143 ) 1,163 (85 ) A- 11 - 233 - BBB+ 351 - 27 - $ 1,387 $ (143 ) $ 1,534 $ (85 ) |
Schedule Of Offsetting Assets And Liabilities | As of December 31, 2015 Embedded Derivative Derivative Instruments Instruments Total Financial Assets Gross amount of recognized assets $ 2,250 $ - $ 2,250 Gross amounts offset (713 ) - (713 ) Net amount of assets 1,537 - 1,537 Gross amounts not offset: Cash collateral (1,387 ) - (1,387 ) Net amount $ 150 $ - $ 150 Financial Liabilities Gross amount of recognized liabilities $ 139 $ 2,140 $ 2,279 Gross amounts offset (61 ) - (61 ) Net amount of liabilities 78 2,140 2,218 Gross amounts not offset: Cash collateral (143 ) - (143 ) Net amount $ (65 ) $ 2,140 $ 2,075 As of December 31, 2014 Embedded Derivative Derivative Instruments Instruments Total Financial Assets Gross amount of recognized assets $ 2,537 $ - $ 2,537 Gross amounts offset (677 ) - (677 ) Net amount of assets 1,860 - 1,860 Gross amounts not offset: Cash collateral (1,534 ) - (1,534 ) Net amount $ 326 $ - $ 326 Financial Liabilities Gross amount of recognized liabilities $ 130 $ 1,494 $ 1,624 Gross amounts offset (50 ) - (50 ) Net amount of liabilities 80 1,494 1,574 Gross amounts not offset: Cash collateral (85 ) - (85 ) Net amount $ (5 ) $ 1,494 $ 1,489 |
Federal Income Taxes (Tables)
Federal Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Federal Income Taxes [Abstract] | |
Income tax expense (benefit), continuing operations | For the Years Ended December 31, 2015 2014 2013 Current $ 212 $ 220 $ 169 Deferred 64 263 218 Federal income tax expense (benefit) $ 276 $ 483 $ 387 |
Reconciliation of effective tax rate differences | For the Years Ended December 31, 2015 2014 2013 Tax rate times pre-tax income $ 501 $ 700 $ 571 Effect of: Tax-preferred investment income (197 ) (185 ) (160 ) Tax credits (26 ) (27 ) (35 ) Change in uncertain tax positions (2 ) (16 ) 7 Other items - 11 4 Federal income tax expense (benefit) $ 276 $ 483 $ 387 Effective tax rate 19% 24% 24% |
Federal income tax asset (liability) | As of December 31, 2015 2014 Current $ (136 ) $ (134 ) Deferred (1,867 ) (3,024 ) Total federal income tax asset (liability) $ (2,003 ) $ (3,158 ) |
Significant components of deferred tax assets and liabilities | As of December 31, 2015 2014 Deferred Tax Assets Future contract benefits and other contract holder funds $ 1,494 $ 1,167 Deferred gain on business sold through reinsurance 35 15 Reinsurance related embedded derivative asset 31 52 Investment activity - 138 Compensation and benefit plans 265 321 Net operating loss carryforwards 12 17 Tax credits 33 - Other 205 143 Total deferred tax assets 2,075 1,853 Deferred Tax Liabilities DAC 2,064 1,605 VOBA 313 219 Net unrealized gain on AFS securities 1,116 2,684 Net unrealized gain on trading securities 70 105 Intangibles 117 151 Investment activity 105 - Other 157 113 Total deferred tax liabilities 3,942 4,877 Net deferred tax asset (liability) $ (1,867 ) $ (3,024 ) |
Schedule of Unrecognized Tax Benefits Roll Forward | For the Years Ended December 31, 2015 2014 Balance as of beginning-of-year $ 15 $ 82 Increases for prior year tax positions - 34 Decreases for prior year tax positions (2 ) (24 ) Increases for current year tax positions - - Decreases for settlements with taxing authorities - (77 ) Balance as of end-of-year $ 13 $ 15 |
DAC, VOBA, DSI and DFEL (Tables
DAC, VOBA, DSI and DFEL (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Deferred Policy Acquisition Costs and Value of Business Acquired [Abstract] | |
DAC | For the Years Ended December 31, 2015 2014 2013 Balance as of beginning-of-year $ 7,558 $ 7,695 $ 5,943 Business acquired (sold) through reinsurance 38 - - Deferrals 1,490 1,537 1,564 Amortization, net of interest: Amortization, excluding unlocking, net of interest (879 ) (988 ) (816 ) Unlocking (238 ) 17 42 Adjustment related to realized (gains) losses (15 ) (31 ) (8 ) Adjustment related to unrealized (gains) losses 663 (672 ) 970 Balance as of end-of-year $ 8,617 $ 7,558 $ 7,695 |
VOBA | For the Years Ended December 31, 2015 2014 2013 Balance as of beginning-of-year $ 649 $ 1,191 $ 724 Business acquired (sold) through reinsurance (22 ) 2 4 Deferrals 8 9 13 Amortization: Amortization, excluding unlocking (129 ) (186 ) (179 ) Unlocking (82 ) (21 ) (52 ) Accretion of interest (1) 56 64 68 Adjustment related to realized (gains) losses (1 ) (1 ) (1 ) Adjustment related to unrealized (gains) losses 414 (409 ) 614 Balance as of end-of-year $ 893 $ 649 $ 1,191 (1) The interest accrual rates utilized to calculate the accretion of interest ranged from 4.02% to 7.05% . |
Estimated Future Amortization Of VOBA | 2016 $ 61 2017 65 2018 68 2019 73 2020 82 |
DSI | For the Years Ended December 31, 2015 2014 2013 Balance as of beginning-of-year $ 240 $ 267 $ 253 Deferrals 29 13 10 Amortization, net of interest: Amortization, excluding unlocking, net of interest (33 ) (38 ) (43 ) Unlocking 2 2 8 Adjustment related to realized (gains) losses (1 ) (4 ) (1 ) Adjustment related to unrealized (gains) losses 19 - 40 Balance as of end-of-year $ 256 $ 240 $ 267 |
DFEL | For the Years Ended December 31, 2015 2014 2013 Balance as of beginning-of-year $ 1,401 $ 1,938 $ 1,373 Deferrals 539 402 320 Amortization, net of interest: Amortization, excluding unlocking, net of interest (308 ) (335 ) (216 ) Unlocking (68 ) (50 ) (14 ) Adjustment related to realized (gains) losses (4 ) (6 ) (2 ) Adjustment related to unrealized (gains) losses 392 (548 ) 477 Balance as of end-of-year $ 1,952 $ 1,401 $ 1,938 |
Reinsurance (Tables)
Reinsurance (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance amounts recorded on Consolidated Statements of Income (Loss) | For the Years Ended December 31, 2015 2014 2013 Direct insurance premiums and fee income $ 9,529 $ 9,064 $ 8,023 Reinsurance assumed 73 7 8 Reinsurance ceded (1,311 ) (1,410 ) (1,275 ) Total insurance premiums and fee income $ 8,291 $ 7,661 $ 6,756 Direct insurance benefits $ 6,420 $ 6,127 $ 5,487 Reinsurance recoveries netted against benefits (1,376 ) (1,448 ) (1,625 ) Total benefits $ 5,044 $ 4,679 $ 3,862 |
Goodwill and Specifically Ide42
Goodwill and Specifically Identifiable Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in the carrying amount of goodwill, by reportable segment | For the Year Ended December 31, 2015 Gross Accumulated Goodwill Impairment Net as of as of Goodwill Beginning- Beginning- as of End- of-Year of-Year Impairment of-Year Annuities $ 1,040 $ (600 ) $ - $ 440 Retirement Plan Services 20 - - 20 Life Insurance 2,188 (649 ) - 1,539 Group Protection 274 - - 274 Total goodwill $ 3,522 $ (1,249 ) $ - $ 2,273 For the Year Ended December 31, 2014 Gross Accumulated Goodwill Impairment Net as of as of Goodwill Beginning- Beginning- as of End- of-Year of-Year Impairment of-Year Annuities $ 1,040 $ (600 ) $ - $ 440 Retirement Plan Services 20 - - 20 Life Insurance 2,188 (649 ) - 1,539 Group Protection 274 - - 274 Other Operations – Media 341 (341 ) - - Total goodwill $ 3,863 $ (1,590 ) $ - $ 2,273 |
Gross carrying amounts and accumulated amortization for each major specifically identifiable intangible asset class, by reportable segment | As of December 31, 2015 As of December 31, 2014 Gross Gross Carrying Accumulated Carrying Accumulated Amount Amortization Amount Amortization Life Insurance: Sales force $ 100 $ 39 $ 100 $ 35 Retirement Plan Services: Mutual fund contract rights (1) 5 - 5 - Total $ 105 $ 39 $ 105 $ 35 (1) No amortization recorded as the intangible asset has indefinite life. |
Future estimated amortization of specifically identifiable intangible assets | 2016 $ 4 2017 4 2018 4 2019 4 2020 4 Thereafter 41 |
Guaranteed Benefit Features (Ta
Guaranteed Benefit Features (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Guaranteed Benefit Features [Abstract] | |
Information On Guaranteed Death Benefit Features | As of December 31, 2015 (1) 2014 (1) Return of Net Deposits Total account value $ 85,345 $ 85,917 Net amount at risk (2) 1,201 183 Average attained age of contract holders 63 years 62 years Minimum Return Total account value $ 111 $ 135 Net amount at risk (2) 24 25 Average attained age of contract holders 75 years 74 years Guaranteed minimum return 5% 5% Anniversary Contract Value Total account value $ 24,659 $ 26,021 Net amount at risk (2) 1,345 597 Average attained age of contract holders 69 years 68 years (1) Our variable contracts with guarantees may offer more than one type of guarantee in each contract; therefore, the amounts listed are not mutually exclusive. (2) Represents the amount of death benefit in excess of the account balance that is subject to market fluctuations. |
Summary Of Guaranteed Death Benefit Liabilities | For the Years Ended December 31, 2015 2014 2013 Balance as of beginning-of-year $ 89 $ 73 $ 104 Changes in reserves 52 34 (10 ) Benefits paid (26 ) (18 ) (21 ) Balance as of end-of-year $ 115 $ 89 $ 73 |
Account Balances Of Variable Annuity Contracts With Guarantees Invested In Separate Accounts | As of December 31, 2015 2014 Asset Type Domestic equity $ 48,362 $ 49,569 International equity 18,382 18,791 Bonds 26,492 26,808 Money market 13,057 12,698 Total $ 106,293 $ 107,866 Percent of total variable annuity separate account values 99% 99% |
Short-Term and Long-Term Debt (
Short-Term and Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of debt | As of December 31, 2015 2014 Short-Term Debt Current maturities of long-term debt $ - $ 250 Total short-term debt $ - $ 250 Long-Term Debt, Excluding Current Portion Senior notes: LIBOR + 3 bps notes, due 2017 (1) $ 250 $ 250 7.00% notes, due 2018 200 200 LIBOR + 110 bps loan, due 2018 250 250 8.75% notes, due 2019 (2) 487 487 6.25% notes, due 2020 (2) 300 300 4.85% notes, due 2021 (2) 300 300 4.20% notes, due 2022 (2) 300 300 4.00% notes, due 2023 (2) 350 350 3.35% notes, due 2025 (2) 300 - 6.15% notes, due 2036 (2) 498 498 6.30% notes, due 2037 (1)(2) 375 375 7.00% notes, due 2040 (1)(2) 500 500 Total senior notes 4,110 3,810 Capital securities: 7.00%, due 2066 722 722 6.05%, due 2067 491 491 Total capital securities 1,213 1,213 Unamortized premiums (discounts) (12 ) (12 ) Fair value hedge – interest rate swap agreements 271 259 Total unamortized premiums (discounts) and fair value hedge – interest rate swap agreements 259 247 Total long-term debt $ 5,582 $ 5,270 (1) Categorized as operating debt for leverage ratio calculations as the proceeds were used as a long-term structured solution to reduce the strain on increasing statutory reserves associated with secondary guarantee UL and term policies. (2) We have the option to repurchase the outstanding notes by paying the greater of 100% of the principal amount of the notes to be redeemed or the make-whole amount (as defined in each note agreement), plus in each case any accrued and unpaid interest as of the date of redemption. |
Future principal payments due on long-term debt | 2016 $ - 2017 250 2018 450 2019 487 2020 300 Thereafter 3,836 Total $ 5,323 |
Credit facilities and letters of credit | As of December 31, 2015 Expiration Maximum LOCs Date Available Issued Credit Facilities Five-year revolving credit facility May-2018 $ 2,500 $ 451 LOC facility (1) Dec-2019 350 350 LOC facility (2) Mar-2023 125 125 LOC facility (1) Mar-2023 920 920 LOC facility (1) Aug-2031 990 884 LOC facility (1) Oct-2031 1,034 1,031 Total $ 5,919 $ 3,761 (1) Our wholly-owned subsidiaries entered into irrevocable LOC facility agreements with third-party lenders supporting inter-company reinsurance agreements. (2) We entered into an irrevocable LOC facility agreement with a third-party lender supporting certain fees owed to another third-party lender that automatically renews on an annual basis, unless not extended by the third-party upon 30 days’ notice. |
Contingencies and Commitments (
Contingencies and Commitments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Contingencies and Commitments [Abstract] | |
Future minimum rental commitments | 2016 $ 41 2017 38 2018 32 2019 25 2020 14 Thereafter 27 Total $ 177 |
Future minimum lease payments under capital leases | 2016 $ 2 2017 2 2018 2 2019 85 2020 48 Total minimum lease payments 139 Less: Amount representing interest 9 Present value of minimum lease payments $ 130 |
Shares and Stockholders' Equi46
Shares and Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Shares and Stockholders' Equity [Abstract] | |
Changes In Common stock (Number Of Shares) | For the Years Ended December 31, 2015 2014 2013 Series A Preferred Stock Balance as of beginning-of-year - - 9,532 Conversion of convertible preferred stock (1) - - (5,818 ) Redemption of convertible preferred stock - - (3,714 ) Balance as of end-of-year - - - Common Stock Balance as of beginning-of-year 256,551,440 262,896,701 271,402,586 Conversion of convertible preferred stock (1) - - 93,088 Stock issued for exercise of warrants 1,168,966 4,356,385 1,981,856 Stock compensation/issued for benefit plans 2,108,155 1,770,430 1,399,995 Retirement/cancellation of shares (15,992,668 ) (12,472,076 ) (11,980,824 ) Balance as of end-of-year 243,835,893 256,551,440 262,896,701 Common Stock as of End-of-Year Assuming conversion of preferred stock 243,835,893 256,551,440 262,896,701 Diluted basis 247,732,609 261,538,593 272,196,891 (1) Represents the conversion of Series A preferred stock into common stock. |
Reconciliation Of The Denominator Calculations Of Basic And Diluted EPS | For the Years Ended December 31, 2015 2014 2013 Weighted-average shares, as used in basic calculation 250,629,243 260,877,533 265,631,377 Shares to cover exercise of outstanding warrants 1,389,768 4,342,860 9,884,307 Shares to cover conversion of preferred stock - - 74,582 Shares to cover non-vested stock 1,302,859 1,522,737 1,491,483 Average stock options outstanding during the year 3,162,508 3,828,292 2,873,295 Assumed acquisition of shares with assumed proceeds from exercising outstanding warrants (262,709 ) (894,175 ) (2,630,939 ) Assumed acquisition of shares with assumed proceeds and benefits from exercising stock options (at average market price for the year) (2,258,658 ) (2,679,571 ) (2,036,098 ) Shares repurchaseable from measured but unrecognized stock option expense (45,958 ) (75,268 ) (139,131 ) Average deferred compensation shares 1,021,059 1,041,587 - Weighted-average shares, as used in diluted calculation 254,938,112 267,963,995 275,148,876 |
Components And Changes In Accumulated OCI | For the Years Ended December 31, 2015 2014 2013 Unrealized Gain (Loss) on AFS Securities Balance as of beginning-of-year $ 3,213 $ 1,538 $ 4,020 Unrealized holding gains (losses) arising during the year (4,541 ) 3,855 (5,766 ) Change in foreign currency exchange rate adjustment (45 ) (47 ) 19 Change in DAC, VOBA, DSI, future contract benefits and other contract holder funds 1,294 (1,252 ) 1,834 Income tax benefit (expense) 1,147 (895 ) 1,369 Less: Reclassification adjustment for gains (losses) included in net income (loss) 145 10 (67 ) Associated amortization of DAC, VOBA, DSI and DFEL (27 ) (32 ) (29 ) Income tax benefit (expense) (41 ) 8 34 Balance as of end-of-year $ 991 $ 3,213 $ 1,538 Unrealized OTTI on AFS Securities Balance as of beginning-of-year $ 26 $ (7 ) $ (61 ) (Increases) attributable to: Gross OTTI recognized in OCI during the year (30 ) (12 ) (11 ) Change in DAC, VOBA, DSI and DFEL 4 2 1 Income tax benefit (expense) 9 4 4 Decreases attributable to: Changes in fair value, sales, maturities or other settlements of AFS securities 43 65 100 Change in DAC, VOBA, DSI and DFEL (17 ) (5 ) (8 ) Income tax benefit (expense) (9 ) (21 ) (32 ) Balance as of end-of-year $ 26 $ 26 $ (7 ) Unrealized Gain (Loss) on Derivative Instruments Balance as of beginning-of-year $ 139 $ 256 $ 163 Unrealized holding gains (losses) arising during the year (241 ) (250 ) 143 Change in foreign currency exchange rate adjustment 48 50 (19 ) Change in DAC, VOBA, DSI and DFEL 2 2 5 Income tax benefit (expense) 66 69 (45 ) Less: Reclassification adjustment for gains (losses) included in net income (loss) (183 ) (19 ) (15 ) Associated amortization of DAC, VOBA, DSI and DFEL 1 1 1 Income tax benefit (expense) 64 6 5 Balance as of end-of-year $ 132 $ 139 $ 256 Foreign Currency Translation Adjustment Balance as of beginning-of-year $ (3 ) $ (5 ) $ (4 ) Foreign currency translation adjustment arising during the year (2 ) 2 (1 ) Balance as of end-of-year $ (5 ) $ (3 ) $ (5 ) Funded Status of Employee Benefit Plans Balance as of beginning-of-year $ (279 ) $ (219 ) $ (310 ) Adjustment arising during the year (21 ) (96 ) 140 Income tax benefit (expense) 1 36 (49 ) Balance as of end-of-year $ (299 ) $ (279 ) $ (219 ) |
Schedule of Reclassifications Out Of AOCI | For the Years Ended December 31, 2015 2014 2013 Unrealized Gain (Loss) on AFS Securities Gross reclassification $ 145 $ 10 $ (67 ) Total realized gain (loss) Associated amortization of DAC, VOBA, DSI and DFEL (27 ) (32 ) (29 ) Total realized gain (loss) Reclassification before income Income (loss) from continuing tax benefit (expense) 118 (22 ) (96 ) operations before taxes Income tax benefit (expense) (41 ) 8 34 Federal income tax expense (benefit) Reclassification, net of income tax $ 77 $ (14 ) $ (62 ) Net income (loss) Unrealized OTTI on AFS Securities Gross reclassification $ 2 $ 65 $ 100 Total realized gain (loss) Change in DAC, VOBA, DSI and DFEL - (5 ) (8 ) Total realized gain (loss) Reclassification before income Income (loss) from continuing tax benefit (expense) 2 60 92 operations before taxes Income tax benefit (expense) - (21 ) (32 ) Federal income tax expense (benefit) Reclassification, net of income tax $ 2 $ 39 $ 60 Net income (loss) Unrealized Gain (Loss) on Derivative Instruments Gross reclassifications: Interest rate contracts $ (190 ) $ (22 ) $ (21 ) Net investment income Interest rate contracts 1 3 3 Interest and debt expense Foreign currency contracts 6 - 3 Net investment income Total gross reclassifications (183 ) (19 ) (15 ) Associated amortization of DAC, VOBA, DSI and DFEL 1 1 1 Commissions and other expenses Reclassifications before income Income (loss) from continuing tax benefit (expense) (182 ) (18 ) (14 ) operations before taxes Income tax benefit (expense) 64 6 5 Federal income tax expense (benefit) Reclassification, net of income tax $ (118 ) $ (12 ) $ (9 ) Net income (loss) |
Commissions and Other Expenses
Commissions and Other Expenses (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commissions And Other Expenses [Abstract] | |
Details underlying commissions and other expenses | For the Years Ended December 31, 2015 2014 2013 Commissions $ 2,071 $ 2,092 $ 1,962 General and administrative expenses 1,701 1,640 1,630 Expenses associated with reserve financing and unrelated LOCs 73 68 64 DAC and VOBA deferrals and interest, net of amortization (226 ) (432 ) (640 ) Broker-dealer expenses 432 408 387 Specifically identifiable intangible asset amortization 4 4 4 Media expenses 29 60 62 Taxes, licenses and fees 234 239 232 Total $ 4,318 $ 4,079 $ 3,701 |
Retirement and Deferred Compe48
Retirement and Deferred Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Obligations, funded status and assumptions | As of or For the Years Ended December 31, 2015 2014 2015 2014 Other Postretirement Pension Plans Benefit Plans Fair value of plan assets $ 1,434 $ 1,522 $ 52 $ 48 Projected benefit obligation 1,607 1,708 97 103 Funded status of plan $ (173 ) $ (186 ) $ (45 ) $ (55 ) Amounts Recognized on the Consolidated Balance Sheets Other assets $ 28 $ 34 $ 2 $ 1 Other liabilities (201 ) (220 ) (47 ) (56 ) Net amount recognized $ (173 ) $ (186 ) $ (45 ) $ (55 ) Weighted-Average Assumptions Benefit obligations: Weighted-average discount rate 4.29% 3.88% 4.50% 4.00% Net periodic benefit cost: Weighted-average discount rate 3.88% 4.64% 4.00% 4.50% Expected return on plan assets 6.87% 6.90% 6.50% 6.50% |
Fair value measurements of pension plan assets on a recurring basis | As of December 31, 2015 2014 Fixed maturity securities: Corporate bonds $ 355 $ 454 U.S. government bonds 207 161 Foreign government bonds 145 166 State and municipal bonds 32 33 Common and preferred stock 542 554 Cash and invested cash 151 152 Other investments 54 50 Total $ 1,486 $ 1,570 |
Deferred compensation plans liabilities and investments | As of December 31, 2015 2014 Total liabilities (1) $ 483 $ 495 Investments dedicated to fund liabilities (2) 151 160 |
Stock-Based Incentive Compens49
Stock-Based Incentive Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Stock-Based Incentive Compensation Plans [Abstract] | |
Total compensation expense for all stock-based incentive compensation plans | For the Years Ended December 31, 2015 2014 2013 Stock options $ 7 $ 9 $ 9 Performance shares 12 12 10 SARs - 2 5 RSUs 22 15 16 Total $ 41 $ 38 $ 40 Recognized tax benefit $ 14 $ 13 $ 14 |
Total unrecognized compensation expense for all stock-based incentive compensation plans | For the Years Ended December 31, 2015 2014 2013 Weighted- Weighted- Weighted- Average Average Average Expense Period Expense Period Expense Period Stock options $ 8 1.4 $ 8 1.5 $ 9 1.9 Performance shares 11 1.0 9 1.5 9 1.5 SARs 1 3.0 3 3.2 3 3.4 RSUs 24 1.0 21 1.0 18 1.2 Total unrecognized stock-based incentive compensation expense $ 44 $ 41 $ 39 |
Option price assumptions used for stock option incentive plans | For the Years Ended December 31, 2015 2014 2013 Weighted-average fair value per option granted $ 13.00 $ 12.95 $ 7.39 Assumptions: Dividend yield 1.9% 2.2% 2.4% Expected volatility 28.0% 33.2% 34.1% Risk-free interest rate 1.4 - 1.7 % 0.9 - 1.8 % 0.6 - 0.9 % Expected life (in years) 5.5 5.4 5.6 |
Summary of activity for stock options with performance conditions | Weighted- Weighted- Average Average Remaining Aggregate Exercise Contractual Intrinsic Shares Price Term Value Outstanding as of December 31, 2014 1,071,747 $ 47.93 Granted – original 90,239 57.65 Exercised (includes shares tendered) (131,121 ) 39.60 Forfeited or expired (22,785 ) 40.46 Outstanding as of December 31, 2015 1,008,080 $ 50.05 2.28 $ 3 Vested or expected to vest as of December 31, 2015 (1) 952,889 $ 49.96 2.21 $ 3 Exercisable as of December 31, 2015 897,697 $ 49.86 2.13 $ 2 (1) Includes estimated forfeitures. |
Summary of activity for stock options with service conditions | Weighted- Weighted- Average Average Remaining Aggregate Exercise Contractual Intrinsic Shares Price Term Value Outstanding as of December 31, 2014 3,923,693 $ 38.65 Granted – original 502,664 58.25 Exercised (includes shares tendered) (1,249,442 ) 39.05 Forfeited or expired (152,567 ) 48.76 Outstanding as of December 31, 2015 3,024,348 $ 41.23 6.14 $ 38 Vested or expected to vest as of December 31, 2015 (1) 2,880,077 $ 40.97 5.99 $ 36 Exercisable as of December 31, 2015 2,017,776 $ 37.65 5.04 $ 32 (1) Includes estimated forfeitures. |
Summary of activity for performance shares | Weighted- Average Grant-Date Shares Fair Value Nonvested as of December 31, 2014 702,426 $ 37.36 Granted 161,255 68.35 Vested (291,455 ) 29.69 Forfeited (34,339 ) 49.05 Nonvested as of December 31, 2015 537,887 $ 49.52 |
Option price assumptions used for stock appreciation rights plan | For the Years Ended December 31, 2015 2014 2013 Weighted-average fair value per SAR granted $ 14.22 $ 13.64 $ 7.47 Assumptions: Dividend yield 1.6% 1.5% 2.2% Expected volatility 29.8% 32.7% 30.5% Risk-free interest rate 1.8% 1.7% 1.0% Expected life (in years) 5.0 5.0 5.0 |
Summary of activity for stock appreciation rights plan | Weighted- Weighted- Average Average Remaining Aggregate Exercise Contractual Intrinsic Shares Price Term Value Outstanding as of December 31, 2014 307,959 $ 34.28 Granted – original 48,451 57.64 Exercised (includes shares tendered) (85,713 ) 30.18 Forfeited or expired (5,826 ) 38.92 Outstanding as of December 31, 2015 264,871 $ 39.61 2.33 $ 3 Vested or expected to vest as of December 31, 2015 (1) 248,111 $ 39.70 2.32 $ 3 Exercisable as of December 31, 2015 155,909 $ 35.01 1.79 $ 2 (1) Includes estimated forfeitures. |
Summary of activity for restricted stock units | Weighted- Average Grant-Date Shares Fair Value Outstanding as of December 31, 2014 1,527,675 $ 34.30 Granted 481,900 58.08 Vested (613,391 ) 26.33 Forfeited (96,185 ) 43.32 Outstanding as of December 31, 2015 1,299,999 $ 46.21 |
Statutory Information and Res50
Statutory Information and Restrictions (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Statutory Information and Restrictions Disclosure [Abstract] | |
Statutory information | As of December 31, 2015 2014 U.S. capital and surplus $ 7,815 $ 8,200 For the Years Ended December 31, 2015 2014 2013 U.S. net gain (loss) from operations, after-tax $ 635 $ 1,225 $ 494 U.S. net income (loss) 838 1,456 561 U.S. dividends to LNC holding company 1,175 785 725 |
Effects on statutory surplus compared to NAIC statutory surplus from the use of prescribed and permitted practices | As of December 31, 2015 2014 Calculation of reserves using the Indiana universal life method $ 109 $ 140 Calculation of reserves using continuous CARVM (1 ) (1 ) Conservative valuation rate on certain annuities (43 ) (39 ) Lesser of LOC and XXX additional reserve as surplus 2,835 2,751 |
Fair Value of Financial Instr51
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Of Financial Instruments [Abstract] | |
Carrying And Estimated Fair Values Of Financial Instruments | As of December 31, 2015 As of December 31, 2014 Carrying Fair Carrying Fair Value Value Value Value Assets AFS securities: Fixed maturity securities $ 84,964 $ 84,964 $ 86,240 $ 86,240 VIEs’ fixed maturity securities 598 598 598 598 Equity securities 237 237 231 231 Trading securities 1,854 1,854 2,065 2,065 Mortgage loans on real estate 8,678 8,936 7,574 8,038 Derivative investments (1) 1,537 1,537 1,860 1,860 Other investments 1,778 1,778 1,709 1,709 Cash and invested cash 3,146 3,146 3,919 3,919 Other assets – reinsurance recoverable 268 268 154 154 Separate account assets 123,619 123,619 125,265 125,265 Liabilities Future contract benefits – indexed annuity and IUL contracts embedded derivatives (1,100 ) (1,100 ) (1,170 ) (1,170 ) Other contract holder funds: Remaining guaranteed interest and similar contracts (687 ) (687 ) (699 ) (699 ) Account values of certain investment contracts (30,392 ) (34,618 ) (29,156 ) (33,079 ) Short-term debt (2) - - (250 ) (253 ) Long-term debt (5,582 ) (5,505 ) (5,270 ) (5,707 ) Reinsurance related embedded derivatives (87 ) (87 ) (150 ) (150 ) VIEs’ liabilities – derivative instruments (4 ) (4 ) (13 ) (13 ) Other liabilities: Credit default swaps (9 ) (9 ) (3 ) (3 ) Derivative liabilities (1) (69 ) (69 ) (77 ) (77 ) GLB reserves embedded derivatives (3) (953 ) (953 ) (174 ) (174 ) Benefit Plans’ Assets (4) 1,486 1,486 1,570 1,570 (1) We have master netting agreements with each of our derivative counterparties, which allow for the netting of our derivative asset and liability positions by counterparty. (2) The difference between the carrying value and fair value of short-term debt as of December 31, 2014, related to current maturities of long-term debt. (3) Portions of our GLB reserves embedded derivatives are ceded to third-party reinsurance counterparties. Refer to Note 6 for additional detail . (4) Included in the funded statuses of the benefit plans, which is reported in other liabilities on our Consolidated Balance Sheets. Refer to Note 17 for information regarding our benefit plans. |
Fair Value Of Assets And Liabilities On A Recurring Basis | As of December 31, 2015 Quoted Prices in Active Markets for Significant Significant Identical Observable Unobservable Total Assets Inputs Inputs Fair (Level 1) (Level 2) (Level 3) Value Assets Investments: Fixed maturity AFS securities: Corporate bonds $ 60 $ 70,878 $ 1,993 $ 72,931 ABS - 1,056 45 1,101 U.S. government bonds 412 17 - 429 Foreign government bonds - 413 111 524 RMBS - 3,727 1 3,728 CMBS - 366 10 376 CLOs - 38 551 589 State and municipal bonds - 4,480 - 4,480 Hybrid and redeemable preferred securities 48 664 94 806 VIEs’ fixed maturity securities - 598 - 598 Equity AFS securities 8 65 164 237 Trading securities 160 1,621 73 1,854 Other investments 148 - - 148 Derivative investments (1) - 1,459 853 2,312 Cash and invested cash - 3,146 - 3,146 Other assets – reinsurance recoverable - - 268 268 Separate account assets 1,053 122,566 - 123,619 Total assets $ 1,889 $ 211,094 $ 4,163 $ 217,146 Liabilities Future contract benefits – indexed annuity and IUL contracts embedded derivatives $ - $ - $ (1,100 ) $ (1,100 ) Long-term debt - (1,203 ) - (1,203 ) Reinsurance related embedded derivatives - (87 ) - (87 ) VIEs’ liabilities – derivative instruments - - (4 ) (4 ) Other liabilities: Credit default swaps - - (9 ) (9 ) Derivative liabilities (1) - (546 ) (298 ) (844 ) GLB reserves embedded derivatives - - (953 ) (953 ) Total liabilities $ - $ (1,836 ) $ (2,364 ) $ (4,200 ) Benefit Plans’ Assets $ 156 $ 1,330 $ - $ 1,486 As of December 31, 2014 Quoted Prices in Active Markets for Significant Significant Identical Observable Unobservable Total Assets Inputs Inputs Fair (Level 1) (Level 2) (Level 3) Value Assets Investments: Fixed maturity AFS securities: Corporate bonds $ 63 $ 71,400 $ 1,953 $ 73,416 ABS - 1,097 33 1,130 U.S. government bonds 399 36 - 435 Foreign government bonds - 432 109 541 RMBS - 4,225 1 4,226 CMBS - 555 15 570 CLOs - 7 368 375 State and municipal bonds - 4,593 - 4,593 Hybrid and redeemable preferred securities 45 854 55 954 VIEs’ fixed maturity securities - 598 - 598 Equity AFS securities 7 67 157 231 Trading securities - 1,992 73 2,065 Other investments 150 - - 150 Derivative investments (1) - 1,356 1,231 2,587 Cash and invested cash - 3,919 - 3,919 Other assets – reinsurance recoverable - - 154 154 Separate account assets 1,539 123,726 - 125,265 Total assets $ 2,203 $ 214,857 $ 4,149 $ 221,209 Liabilities Future contract benefits – indexed annuity and IUL contracts embedded derivatives $ - $ - $ (1,170 ) $ (1,170 ) Long-term debt - (1,203 ) - (1,203 ) Reinsurance related embedded derivatives - (150 ) - (150 ) VIEs’ liabilities – derivative instruments - - (13 ) (13 ) Other liabilities: Credit default swaps - - (3 ) (3 ) Derivative liabilities (1) - (562 ) (242 ) (804 ) GLB reserves embedded derivatives - - (174 ) (174 ) Total liabilities $ - $ (1,915 ) $ (1,602 ) $ (3,517 ) Benefit Plans’ Assets $ 116 $ 1,454 $ - $ 1,570 (1) Derivative investment assets and liabilities presented within the fair value hierarchy are presented on a gross basis by derivative type and not on a master netting basis by counterparty. |
Fair Value Measured On A Recurring Basis Reconciliation | For the Year Ended December 31, 2015 Purchases, Gains Issuances, Transfers Items (Losses) Sales, Into or Included in Maturities, Out Beginning in OCI Settlements, of Ending Fair Net and Calls, Level 3, Fair Value Income Other (1) Net Net (2) Value Investments: (4) Fixed maturity AFS securities: Corporate bonds $ 1,953 $ 4 $ (140 ) $ 118 $ 58 $ 1,993 ABS 33 - - 12 - 45 Foreign government bonds 109 - 2 - - 111 RMBS 1 4 - (4 ) - 1 CMBS 15 2 8 (15 ) - 10 CLOs 368 - 1 194 (12 ) 551 Hybrid and redeemable preferred securities 55 (1 ) (3 ) - 43 94 Equity AFS securities 157 2 3 3 (1 ) 164 Trading securities 73 3 (3 ) - - 73 Derivative investments 989 (90 ) (41 ) (303 ) - 555 Other assets – reinsurance recoverable (5) 154 114 - - - 268 Future contract benefits – indexed annuity and universal life contracts embedded derivatives (5) (1,170 ) (57 ) - 127 - (1,100 ) VIEs’ liabilities – derivative instruments (6) (13 ) 9 - - - (4 ) Other liabilities: Credit default swaps (7) (3 ) (6 ) - - - (9 ) GLB reserves embedded derivatives (5) (174 ) (779 ) - - - (953 ) Total, net $ 2,547 $ (795 ) $ (173 ) $ 132 $ 88 $ 1,799 For the Year Ended December 31, 2014 Purchases, Gains Issuances, Transfers Items (Losses) Sales, Into or Included in Maturities, Out Beginning in OCI Settlements, of Ending Fair Net and Calls, Level 3, Fair Value Income Other (1) Net Net (2)(3) Value Investments: (4) Fixed maturity AFS securities: Corporate bonds $ 1,701 $ 9 $ 27 $ 197 $ 19 $ 1,953 ABS 10 - 1 - 22 33 Foreign government bonds 79 - 5 - 25 109 RMBS 1 - - - - 1 CMBS 20 - 2 (13 ) 6 15 CLOs 179 (3 ) 7 136 49 368 State and municipal bonds 28 - 1 - (29 ) - Hybrid and redeemable preferred securities 66 - (1 ) (5 ) (5 ) 55 Equity AFS securities 161 4 (3 ) (5 ) - 157 Trading securities 52 4 8 10 (1 ) 73 Derivative investments 1,266 72 356 (279 ) (426 ) 989 Other assets – reinsurance recoverable: (5) 27 127 - - - 154 Future contract benefits: (5) Indexed annuity and IUL contracts embedded derivatives (1,048 ) (210 ) - 88 - (1,170 ) GLB reserves embedded derivatives 1,244 - - - (1,244 ) - VIEs’ liabilities – derivative instruments (6) (27 ) 14 - - - (13 ) Other liabilities: Credit default swaps (7) (2 ) (1 ) - - - (3 ) GLB reserves embedded derivatives (5) (27 ) (1,391 ) - - 1,244 (174 ) Total, net $ 3,730 $ (1,375 ) $ 403 $ 129 $ (340 ) $ 2,547 For the Year Ended December 31, 2013 Purchases, Gains Issuances, Transfers Items (Losses) Sales, Into or Included in Maturities, Out Beginning in OCI Settlements, of Ending Fair Net and Calls, Level 3, Fair Value Income Other (1) Net Net (2) Value Investments: (4) Fixed maturity AFS securities: Corporate bonds $ 1,491 $ (18 ) $ (2 ) $ 316 $ (86 ) $ 1,701 ABS 14 - 1 29 (34 ) 10 U.S. government bonds 1 - - (1 ) - - Foreign government bonds 46 - - 33 - 79 RMBS 3 - - (2 ) - 1 CMBS 27 1 6 (6 ) (8 ) 20 CLOs 154 (1 ) 4 50 (28 ) 179 State and municipal bonds 32 - (4 ) - - 28 Hybrid and redeemable preferred securities 118 - 13 (35 ) (30 ) 66 Equity AFS securities 87 (1 ) 2 73 - 161 Trading securities 56 3 (7 ) (6 ) 6 52 Derivative investments 2,026 (681 ) 96 (175 ) - 1,266 Future contract benefits: (5) Indexed annuity and IUL contracts embedded derivatives (732 ) (356 ) - 40 - (1,048 ) GLB reserves embedded derivatives (909 ) 2,153 - - - 1,244 VIEs’ liabilities – derivative instruments (6) (128 ) 101 - - - (27 ) Other liabilities – credit default swaps (7) (11 ) 9 - - - (2 ) Total, net $ 2,275 $ 1,210 $ 109 $ 316 $ (180 ) $ 3,730 (1) The changes in fair value of the interest rate swaps are offset by an adjustment to derivative investments (see Note 6 ). (2) Transfers into or out of Level 3 for AFS and trading securities are displayed at amortized cost as of the beginning-of-year. For AFS and trading securities, the difference between beginning-of-year amortized cost and beginning-of-year fair value was included in OCI and earnings, respectively, in prior years. (3) Transfers into or out of Level 3 for GLB reserves embedded derivatives between future contract benefits, other assets and other liabilities on our Consolidated Balance Sheets. (4) Amortization and accretion of premiums and discounts are included in net investment income on our Consolidated Statements of Comprehensive Income (Loss). Gains (losses) from sales, maturities, settlements and calls and OTTI are included in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). (5) Gains (losses) from sales, maturities, settlements and calls are included in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). (6) Gains (losses) from sales, maturities, settlements and calls are included in net investment income on our Consolidated Statements of Comprehensive Income (Loss). (7) The changes in fair value of the credit default swaps and contingency forwards are included in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). |
Schedule Of Investment Holdings Movements | For the Year Ended December 31, 2015 Issuances Sales Maturities Settlements Calls Total Investments: Fixed maturity AFS securities: Corporate bonds $ 359 $ (38 ) $ (44 ) $ (119 ) $ (40 ) $ 118 ABS 13 - - (1 ) - 12 RMBS - (4 ) - - - (4 ) CMBS - - - (14 ) (1 ) (15 ) CLOs 217 - - (23 ) - 194 Equity AFS securities 43 (40 ) - - - 3 Derivative investments 179 (162 ) (320 ) - - (303 ) Future contract benefits – indexed annuity and IUL contracts embedded derivatives (51 ) - - 178 - 127 Total, net $ 760 $ (244 ) $ (364 ) $ 21 $ (41 ) $ 132 For the Year Ended December 31, 2014 Issuances Sales Maturities Settlements Calls Total Investments: Fixed maturity AFS securities: Corporate bonds $ 600 $ (75 ) $ (115 ) $ (51 ) $ (162 ) $ 197 CMBS - - - (13 ) - (13 ) CLOs 187 - - (46 ) (5 ) 136 Hybrid and redeemable preferred securities - (5 ) - - - (5 ) Equity AFS securities - (5 ) - - - (5 ) Trading securities 14 - - (4 ) - 10 Derivative investments 160 (87 ) (352 ) - - (279 ) Future contract benefits – indexed annuity and IUL contracts embedded derivatives (69 ) - - 157 - 88 Total, net $ 892 $ (172 ) $ (467 ) $ 43 $ (167 ) $ 129 For the Year Ended December 31, 2013 Issuances Sales Maturities Settlements Calls Total Investments: Fixed maturity AFS securities: Corporate bonds $ 533 $ (51 ) $ (47 ) $ (49 ) $ (70 ) $ 316 ABS 30 - - (1 ) - 29 U.S. government bonds - - - (1 ) - (1 ) Foreign government bonds 50 - (17 ) - - 33 RMBS - - - (2 ) - (2 ) CMBS - - - (4 ) (2 ) (6 ) CLOs 74 - - (24 ) - 50 Hybrid and redeemable preferred securities - (35 ) - - - (35 ) Equity AFS securities 78 (5 ) - - - 73 Trading securities - (3 ) (1 ) (2 ) - (6 ) Derivative investments 152 (23 ) (304 ) - - (175 ) Future contract benefits – indexed annuity and IUL contracts embedded derivatives (68 ) - - 108 - 40 Total, net $ 849 $ (117 ) $ (369 ) $ 25 $ (72 ) $ 316 |
Changes In Unrealized Gains (Losses) Within Level 3 Financial Instruments Carried At Fair Value And Still Held | For the Years Ended December 31, 2015 2014 2013 Derivative investments (1) $ (102 ) $ (15 ) $ (752 ) Embedded derivatives: (1) Indexed annuity and IUL contracts (84 ) (37 ) (44 ) GLB reserves (244 ) (678 ) 2,444 VIEs’ liabilities – derivative instruments (2) 9 14 101 Credit default swaps (1) (6 ) (1 ) 9 Total, net $ (427 ) $ (717 ) $ 1,758 (1) Included in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). (2) Included in net investment income on our Consolidated Statements of Comprehensive Income (Loss). |
Components Of The Transfers In And Out Of Level 3 | The following provides the components of the transfers into and out of Level 3 (in millions) as reported above: For the Year Ended December 31, 2015 Transfers Transfers Into Out of Level 3 Level 3 Total Investments: Fixed maturity AFS securities: Corporate bonds $ 224 $ (166 ) $ 58 Foreign government bonds 4 (4 ) - CLOs 4 (16 ) (12 ) Hybrid and redeemable preferred securities 48 (5 ) 43 Equity AFS securities - (1 ) (1 ) Trading securities 4 (4 ) - Total, net $ 284 $ (196 ) $ 88 For the Year Ended December 31, 2014 Transfers Transfers Into Out of Level 3 Level 3 Total Investments: Fixed maturity AFS securities: Corporate bonds $ 475 $ (456 ) $ 19 ABS 26 (4 ) 22 Foreign government bonds 25 - 25 CMBS 6 - 6 CLOs 53 (4 ) 49 State and municipal bonds - (29 ) (29 ) Hybrid and redeemable preferred securities 17 (22 ) (5 ) Trading securities 10 (11 ) (1 ) Derivative investments - (426 ) (426 ) Future contract benefits – GLB reserves embedded derivatives - (1,244 ) (1,244 ) Other liabilities – GLB reserves embedded derivatives 1,244 - 1,244 Total, net $ 1,856 $ (2,196 ) $ (340 ) For the Year Ended December 31, 2013 Transfers Transfers Into Out of Level 3 Level 3 Total Investments: Fixed maturity AFS securities: Corporate bonds $ 373 $ (459 ) $ (86 ) ABS - (34 ) (34 ) CMBS - (8 ) (8 ) CLOs - (28 ) (28 ) Hybrid and redeemable preferred securities 20 (50 ) (30 ) Trading securities 8 (2 ) 6 Total, net $ 401 $ (581 ) $ (180 ) |
Fair Value Inputs Quantitative Information | Fair Valuation Significant Assumption or Value Technique Unobservable Inputs Input Ranges Assets Investments: Fixed maturity AFS and trading securities: Corporate bonds $ 1,314 Discounted cash flow Liquidity/duration adjustment (1) 0.1 % - 11.7 % ABS 25 Discounted cash flow Liquidity/duration adjustment (1) 3.3 % - 3.3 % Foreign government bonds 77 Discounted cash flow Liquidity/duration adjustment (1) 1.9 % - 4.4 % Hybrid and redeemable preferred securities 20 Discounted cash flow Liquidity/duration adjustment (1) 2.1 % - 2.1 % Equity AFS and trading securities 27 Discounted cash flow Liquidity/duration adjustment (1) 4.3 % - 8.8 % Other assets – reinsurance recoverable 268 Discounted cash flow Long-term lapse rate (2) 1 % - 30 % Utilization of guaranteed withdrawals (3) 90 % - 100 % Claims utilization factor (4) 60 % - 100 % Premiums utilization factor (4) 70 % - 120 % NPR (5) 0.02 % - 0.38 % Mortality rate (6) (8) Volatility (7) 1 % - 29 % Liabilities Future contract benefits – indexed annuity and IUL contracts embedded derivatives (1,100 ) Discounted cash flow Lapse rate (2) 1 % - 15 % Mortality rate (6) (8) Other liabilities – GLB reserves embedded derivatives (953 ) Discounted cash flow Long-term lapse rate (2) 1 % - 30 % Utilization of guaranteed withdrawals (3) 90 % - 100 % Claims utilization factor (4) 60 % - 100 % Premiums utilization factor (4) 70 % - 120 % NPR (5) 0.02 % - 0.38 % Mortality rate (6) (8) Volatility (7) 1 % - 29 % (1) The liquidity/duration adjustment input represents an estimated market participant composite of adjustments attributable to liquidity premiums, expected durations, structures and credit quality that would be applied to the market observable information of an investment. (2) The lapse rate input represents the estimated probability of a contract surrendering during a year, and thereby forgoing any future benefits. The range for indexed annuity and IUL contracts represents the lapse rates during the surrender charge period. (3) The utilization of guaranteed withdrawals input represents the estimated percentage of contract holders that utilize the guaranteed withdrawal feature. (4) The utilization factors are applied to the present value of claims or premiums, as appropriate, in the GLB reserve calculation to estimate the impact of inefficient withdrawal behavior, including taking less than or more than the maximum guaranteed withdrawal. (5) The NPR input represents the estimated additional credit spread that market participants would apply to the market observable discount rate when pricing a contract. (6) The mortality rate input represents the estimated probability of when an individual belonging to a particular group, categorized according to age or some other factor such as gender, will die. (7) The volatility input represents overall volatilities assumed for the underlying variable annuity funds, which include a mixture of equity and fixed-income assets. Fair value of the variable annuity GLB embedded derivatives would increase if higher volatilities were used for valuation. (8) The mortality rate is based on a combination of company and industry experience, adjusted for improvement factors. |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Information [Abstract] | |
Reconciliation Of Revenue From Segments To Consolidated | For the Years Ended December 31, 2015 2014 2013 Revenues Operating revenues: Annuities $ 4,120 $ 3,746 $ 3,321 Retirement Plan Services 1,101 1,090 1,071 Life Insurance 5,948 6,003 5,170 Group Protection 2,357 2,445 2,260 Other Operations 374 432 417 Excluded realized gain (loss), pre-tax (329 ) (165 ) (274 ) Amortization of deferred gain arising from reserve changes on business sold through reinsurance, pre-tax 3 3 3 Amortization of DFEL associated with benefit ratio unlocking, pre-tax (2 ) - 1 Total revenues $ 13,572 $ 13,554 $ 11,969 |
Reconciliation Of Income (Loss) From Operations By Segment To Consolidated Net Income (Loss) | For the Years Ended December 31, 2015 2014 2013 Net Income (Loss) Income (loss) from operations: Annuities $ 996 $ 925 $ 750 Retirement Plan Services 140 160 141 Life Insurance 370 612 544 Group Protection 43 23 71 Other Operations (154 ) (109 ) (122 ) Excluded realized gain (loss), after-tax (214 ) (106 ) (178 ) Income (loss) from reserve changes (net of related amortization) on business sold through reinsurance, after-tax 2 2 2 Benefit ratio unlocking, after-tax (29 ) 7 36 Income (loss) from continuing operations, after-tax 1,154 1,514 1,244 Income (loss) from discontinued operations, after-tax - 1 - Net income (loss) $ 1,154 $ 1,515 $ 1,244 |
Reconciliation of Net Investment Income From Segments to Consolidated | For the Years Ended December 31, 2015 2014 2013 Net Investment Income Annuities $ 1,004 $ 1,033 $ 1,044 Retirement Plan Services 846 831 827 Life Insurance 2,541 2,529 2,452 Group Protection 184 180 165 Other Operations 252 286 266 Total net investment income $ 4,827 $ 4,859 $ 4,754 |
Reconciliation of DAC VOBA Amortization From Segments to Consolidated | For the Years Ended December 31, 2015 2014 2013 Amortization of DAC and VOBA, Net of Interest Annuities $ 342 $ 362 $ 383 Retirement Plan Services 30 37 48 Life Insurance 831 655 447 Group Protection 80 57 53 Total amortization of DAC and VOBA, net of interest $ 1,283 $ 1,111 $ 931 |
Reconciliation of federal income tax expense (benefit) from segments to consolidated | For the Years Ended December 31, 2015 2014 2013 Federal Income Tax Expense (Benefit) Annuities $ 262 $ 238 $ 177 Retirement Plan Services 49 51 49 Life Insurance 159 295 268 Group Protection 23 12 38 Other Operations (86 ) (57 ) (71 ) Excluded realized gain (loss) (116 ) (60 ) (95 ) Reserve changes (net of related amortization) on business sold through reinsurance 1 1 1 Benefit ratio unlocking (16 ) 3 20 Total federal income tax expense (benefit) $ 276 $ 483 $ 387 |
Reconciliation of assets from segments to consolidated | As of December 31, 2015 2014 Assets Annuities $ 130,641 $ 130,316 Retirement Plan Services 32,649 33,678 Life Insurance 71,062 70,493 Group Protection 4,182 4,238 Other Operations 13,403 14,652 Total assets $ 251,937 $ 253,377 |
Supplemental Disclosures of C53
Supplemental Disclosures of Cash Flow (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Supplemental Cash Flow Information [Abstract] | |
Summary of supplemental cash flow data | For the Years Ended December 31, 2015 2014 2013 Interest paid $ 265 $ 272 $ 260 Income taxes paid (received) 215 254 10 Significant non-cash investing and financing transactions: Value of stock received from stock options exercised through stock swap transactions - 13 5 Other assets received in our financing transaction 252 - - Other investments received in our repurchase program - 152 - |
Quarterly Results of Operatio54
Quarterly Results of Operations (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Unaudited quarterly results of operations | For the Three Months Ended March 31, June 30, September 30, December 31, 2015 Total revenues $ 3,304 $ 3,381 $ 3,716 $ 3,171 Total expenses 2,942 2,932 3,448 2,820 Net income (loss) 300 344 227 283 Earnings (loss) per common share – basic: Net income (loss) 1.17 1.37 0.91 1.15 Earnings (loss) per common share – diluted: Net income (loss) 1.15 1.35 0.87 1.14 2014 Total revenues $ 3,176 $ 3,282 $ 3,411 $ 3,685 Total expenses 2,749 2,745 2,810 3,253 Income (loss) from continuing operations 329 398 439 348 Income (loss) from discontinued operations, net of federal income taxes - - - 1 Net income (loss) 329 398 439 349 Earnings (loss) per common share – basic: Income (loss) from continuing operations 1.25 1.52 1.69 1.35 Income (loss) from discontinued operations - - - - Net income (loss) 1.25 1.52 1.69 1.35 Earnings (loss) per common share – diluted: Income (loss) from continuing operations 1.21 1.48 1.65 1.32 Income (loss) from discontinued operations - - - - Net income (loss) 1.21 1.48 1.65 1.32 |
Nature of Operations, Basis o55
Nature of Operations, Basis of Presentation and Summary of Significant Accounting Policies (Details) item in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015USD ($)item | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Nature Of Operations And Basis Of Presentation [Abstract] | |||
Grace Period Expiration (In Days) | 10 days | ||
Loans Reported As Delinquent In Days | 60 days | ||
Period In Which Loans No Longer Accrue Interest In Days | 90 days | ||
Estimated Contract Life UL Policies, Low End (In Years) | 30 years | ||
Estimated Contract Life UL Policies, High End (In Years) | 40 years | ||
Estimated Contract Life VUL Policies, Low End (In Years) | 30 years | ||
Estimated Contract Life VUL Policies, High End (In Years) | 40 years | ||
Estimated Contract Life Fixed and Variable Deferred Annuities, Low End (In Years) | 15 years | ||
Estimated Contract Life Fixed and Variable Deferred Annuities, High End (In Years) | 30 years | ||
Front End Load Annuity Products Assumed Life (In Years) | 25 years | ||
Max Of Amortization Period That Generally Results From Expected Premium-Paying Period (in years) | 30 years | ||
Useful life of sales force intangible assets (in years) | 25 years | ||
Number Of Scenarios Used Per Policy To Value A Block Of Guarantees | 100 | ||
Total Scenarios To Value GLB liability | item | 49 | ||
Investment yield assumptions for traditional direct individual life reserves, low end | 2.25% | ||
Investment yield assumptions for traditional direct individual life reserves, high end | 7.75% | ||
Investment yield assumptions for immediate and deferred paid-up annuities, low end | 1.50% | ||
Investment yield assumptions for immediate and deferred paid-up annuities, high end | 13.50% | ||
Participating policies as a percentage of the face amount of insurance in force | 1.00% | 1.00% | |
Dividend expenses | $ | $ 67 | $ 64 | $ 62 |
No. of years in which deferred gain from reinsurance transaction is recognized as income | 15 years | ||
Interest crediting rate, low end | 1.00% | 1.00% | 1.00% |
Interest crediting rate, high end | 10.00% | 10.00% | 10.00% |
Dispositions (Narrative) (Detai
Dispositions (Narrative) (Details) - USD ($) $ in Millions | Jul. 16, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Income (Loss) from Continuing Operations Attributable to Parent | $ 348 | $ 439 | $ 398 | $ 329 | $ 1,154 | $ 1,514 | $ 1,244 | |
Sale of LFM to Entercom [Member] | ||||||||
Income (Loss) from Continuing Operations Attributable to Parent | $ 28 | $ 2 | ||||||
Sale of LFM to Entercom [Member] | Cash [Member] | ||||||||
Pre-Tax Proceeds | $ 75 | |||||||
Sale of LFM to Entercom [Member] | Convertible Preferred Stock [Member] | ||||||||
Pre-Tax Proceeds | $ 28 |
Variable Interest Entities ("57
Variable Interest Entities ("VIE's") (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Oct. 01, 2015 | Dec. 31, 2014 | Aug. 01, 2011 | Dec. 31, 2010 |
Variable Interest Entities [Abstract] | |||||
Note Issued By A Statutory Trust In A Private Placement Offering | $ 100 | ||||
Outstanding Principal Balance of Surplus Note Issued By LRCVV And Held By LFLLCI | $ 479 | ||||
Long-Term Senior Note Issued In Exchange For Corporate Bond Afs Security | $ 500 | ||||
Outstanding Principal Balance of Long-Term Senior Note Issued In Exchange For Corporate Bond AFS Security | 767 | ||||
Maxiumum Principal Balance of Long Term Senior Note Issued In Exchange For Corporate Bond AFS Security | 1,100 | ||||
Surplus Note Issued By Lincoln Reinsurance Company Of Vermont VI | $ 275 | ||||
Outstanding Principal Balance Of Surplus Note Issued By Lincoln Reinsurance Company Of Vermont VI | 336 | ||||
Carrying Amount Of Investments In Qualified Affordable Housing Projects | $ 47 | $ 60 |
Variable Interest Entities ("58
Variable Interest Entities ("VIE's") (CLN Structures Summary Information ) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($)item | |
Credit Linked Note Structure December 2006 [Member] | |
Credit Linked Notes Structures Summary Information [Line Items] | |
Amount of Issuance | $ | $ 400 |
Date of Issuance | December 2,006 |
Original attachment point (subordination) | 5.50% |
Current attachment point (subordination) | 4.21% |
Maturity | Dec. 20, 2016 |
Current rating of tranche | BBB+ |
Current rating of underlying reference obligations, high end of range | AA |
Current rating of underlying reference obligations, low end of range | B |
Number of defaults in underlying reference obligations | 3 |
Number of entities | 123 |
Number of countries | 20 |
Credit Linked Note Structure April 2007 [Member] | |
Credit Linked Notes Structures Summary Information [Line Items] | |
Amount of Issuance | $ | $ 200 |
Date of Issuance | April 2,007 |
Original attachment point (subordination) | 2.05% |
Current attachment point (subordination) | 1.48% |
Maturity | Mar. 20, 2017 |
Current rating of tranche | BB |
Current rating of underlying reference obligations, high end of range | AAA |
Current rating of underlying reference obligations, low end of range | CCC |
Number of defaults in underlying reference obligations | 2 |
Number of entities | 99 |
Number of countries | 21 |
Variable Interest Entities ("59
Variable Interest Entities ("VIE's") (CLN Structures' Underlying Collateral By Industry And Rating) (Details) | Dec. 31, 2015 |
Credit Linked Notes By Industry And Ratings [Line Items] | |
Credit linked note by industry percentage | 100.00% |
AAA [Member] | |
Credit Linked Notes By Industry And Ratings [Line Items] | |
Credit linked note by industry percentage | 0.60% |
AA [Member] | |
Credit Linked Notes By Industry And Ratings [Line Items] | |
Credit linked note by industry percentage | 13.40% |
A [Member] | |
Credit Linked Notes By Industry And Ratings [Line Items] | |
Credit linked note by industry percentage | 34.90% |
BBB [Member] | |
Credit Linked Notes By Industry And Ratings [Line Items] | |
Credit linked note by industry percentage | 39.40% |
BB [Member] | |
Credit Linked Notes By Industry And Ratings [Line Items] | |
Credit linked note by industry percentage | 10.20% |
B [Member] | |
Credit Linked Notes By Industry And Ratings [Line Items] | |
Credit linked note by industry percentage | 1.20% |
CCC [Member] | |
Credit Linked Notes By Industry And Ratings [Line Items] | |
Credit linked note by industry percentage | 0.30% |
Financial Intermediaries [Member] | |
Credit Linked Notes By Industry And Ratings [Line Items] | |
Credit linked note by industry percentage | 10.50% |
Financial Intermediaries [Member] | AAA [Member] | |
Credit Linked Notes By Industry And Ratings [Line Items] | |
Credit linked note by industry percentage | 0.00% |
Financial Intermediaries [Member] | AA [Member] | |
Credit Linked Notes By Industry And Ratings [Line Items] | |
Credit linked note by industry percentage | 2.10% |
Financial Intermediaries [Member] | A [Member] | |
Credit Linked Notes By Industry And Ratings [Line Items] | |
Credit linked note by industry percentage | 5.40% |
Financial Intermediaries [Member] | BBB [Member] | |
Credit Linked Notes By Industry And Ratings [Line Items] | |
Credit linked note by industry percentage | 3.00% |
Financial Intermediaries [Member] | BB [Member] | |
Credit Linked Notes By Industry And Ratings [Line Items] | |
Credit linked note by industry percentage | 0.00% |
Financial Intermediaries [Member] | B [Member] | |
Credit Linked Notes By Industry And Ratings [Line Items] | |
Credit linked note by industry percentage | 0.00% |
Financial Intermediaries [Member] | CCC [Member] | |
Credit Linked Notes By Industry And Ratings [Line Items] | |
Credit linked note by industry percentage | 0.00% |
Telecommunications [Member] | |
Credit Linked Notes By Industry And Ratings [Line Items] | |
Credit linked note by industry percentage | 11.00% |
Telecommunications [Member] | AAA [Member] | |
Credit Linked Notes By Industry And Ratings [Line Items] | |
Credit linked note by industry percentage | 0.00% |
Telecommunications [Member] | AA [Member] | |
Credit Linked Notes By Industry And Ratings [Line Items] | |
Credit linked note by industry percentage | 0.00% |
Telecommunications [Member] | A [Member] | |
Credit Linked Notes By Industry And Ratings [Line Items] | |
Credit linked note by industry percentage | 2.40% |
Telecommunications [Member] | BBB [Member] | |
Credit Linked Notes By Industry And Ratings [Line Items] | |
Credit linked note by industry percentage | 7.20% |
Telecommunications [Member] | BB [Member] | |
Credit Linked Notes By Industry And Ratings [Line Items] | |
Credit linked note by industry percentage | 0.90% |
Telecommunications [Member] | B [Member] | |
Credit Linked Notes By Industry And Ratings [Line Items] | |
Credit linked note by industry percentage | 0.50% |
Telecommunications [Member] | CCC [Member] | |
Credit Linked Notes By Industry And Ratings [Line Items] | |
Credit linked note by industry percentage | 0.00% |
Oil And Gas [Member] | |
Credit Linked Notes By Industry And Ratings [Line Items] | |
Credit linked note by industry percentage | 8.00% |
Oil And Gas [Member] | AAA [Member] | |
Credit Linked Notes By Industry And Ratings [Line Items] | |
Credit linked note by industry percentage | 0.30% |
Oil And Gas [Member] | AA [Member] | |
Credit Linked Notes By Industry And Ratings [Line Items] | |
Credit linked note by industry percentage | 2.10% |
Oil And Gas [Member] | A [Member] | |
Credit Linked Notes By Industry And Ratings [Line Items] | |
Credit linked note by industry percentage | 1.00% |
Oil And Gas [Member] | BBB [Member] | |
Credit Linked Notes By Industry And Ratings [Line Items] | |
Credit linked note by industry percentage | 3.40% |
Oil And Gas [Member] | BB [Member] | |
Credit Linked Notes By Industry And Ratings [Line Items] | |
Credit linked note by industry percentage | 1.20% |
Oil And Gas [Member] | B [Member] | |
Credit Linked Notes By Industry And Ratings [Line Items] | |
Credit linked note by industry percentage | 0.00% |
Oil And Gas [Member] | CCC [Member] | |
Credit Linked Notes By Industry And Ratings [Line Items] | |
Credit linked note by industry percentage | 0.00% |
Utilities [Member] | |
Credit Linked Notes By Industry And Ratings [Line Items] | |
Credit linked note by industry percentage | 4.60% |
Utilities [Member] | AAA [Member] | |
Credit Linked Notes By Industry And Ratings [Line Items] | |
Credit linked note by industry percentage | 0.00% |
Utilities [Member] | AA [Member] | |
Credit Linked Notes By Industry And Ratings [Line Items] | |
Credit linked note by industry percentage | 0.00% |
Utilities [Member] | A [Member] | |
Credit Linked Notes By Industry And Ratings [Line Items] | |
Credit linked note by industry percentage | 1.60% |
Utilities [Member] | BBB [Member] | |
Credit Linked Notes By Industry And Ratings [Line Items] | |
Credit linked note by industry percentage | 3.00% |
Utilities [Member] | BB [Member] | |
Credit Linked Notes By Industry And Ratings [Line Items] | |
Credit linked note by industry percentage | 0.00% |
Utilities [Member] | B [Member] | |
Credit Linked Notes By Industry And Ratings [Line Items] | |
Credit linked note by industry percentage | 0.00% |
Utilities [Member] | CCC [Member] | |
Credit Linked Notes By Industry And Ratings [Line Items] | |
Credit linked note by industry percentage | 0.00% |
Chemicals And Plastics [Member] | |
Credit Linked Notes By Industry And Ratings [Line Items] | |
Credit linked note by industry percentage | 3.80% |
Chemicals And Plastics [Member] | AAA [Member] | |
Credit Linked Notes By Industry And Ratings [Line Items] | |
Credit linked note by industry percentage | 0.00% |
Chemicals And Plastics [Member] | AA [Member] | |
Credit Linked Notes By Industry And Ratings [Line Items] | |
Credit linked note by industry percentage | 0.00% |
Chemicals And Plastics [Member] | A [Member] | |
Credit Linked Notes By Industry And Ratings [Line Items] | |
Credit linked note by industry percentage | 2.30% |
Chemicals And Plastics [Member] | BBB [Member] | |
Credit Linked Notes By Industry And Ratings [Line Items] | |
Credit linked note by industry percentage | 1.20% |
Chemicals And Plastics [Member] | BB [Member] | |
Credit Linked Notes By Industry And Ratings [Line Items] | |
Credit linked note by industry percentage | 0.30% |
Chemicals And Plastics [Member] | B [Member] | |
Credit Linked Notes By Industry And Ratings [Line Items] | |
Credit linked note by industry percentage | 0.00% |
Chemicals And Plastics [Member] | CCC [Member] | |
Credit Linked Notes By Industry And Ratings [Line Items] | |
Credit linked note by industry percentage | 0.00% |
Drugs [Member] | |
Credit Linked Notes By Industry And Ratings [Line Items] | |
Credit linked note by industry percentage | 3.70% |
Drugs [Member] | AAA [Member] | |
Credit Linked Notes By Industry And Ratings [Line Items] | |
Credit linked note by industry percentage | 0.30% |
Drugs [Member] | AA [Member] | |
Credit Linked Notes By Industry And Ratings [Line Items] | |
Credit linked note by industry percentage | 1.60% |
Drugs [Member] | A [Member] | |
Credit Linked Notes By Industry And Ratings [Line Items] | |
Credit linked note by industry percentage | 1.80% |
Drugs [Member] | BBB [Member] | |
Credit Linked Notes By Industry And Ratings [Line Items] | |
Credit linked note by industry percentage | 0.00% |
Drugs [Member] | BB [Member] | |
Credit Linked Notes By Industry And Ratings [Line Items] | |
Credit linked note by industry percentage | 0.00% |
Drugs [Member] | B [Member] | |
Credit Linked Notes By Industry And Ratings [Line Items] | |
Credit linked note by industry percentage | 0.00% |
Drugs [Member] | CCC [Member] | |
Credit Linked Notes By Industry And Ratings [Line Items] | |
Credit linked note by industry percentage | 0.00% |
Retailers (Except Food And Drug) [Member] | |
Credit Linked Notes By Industry And Ratings [Line Items] | |
Credit linked note by industry percentage | 3.50% |
Retailers (Except Food And Drug) [Member] | AAA [Member] | |
Credit Linked Notes By Industry And Ratings [Line Items] | |
Credit linked note by industry percentage | 0.00% |
Retailers (Except Food And Drug) [Member] | AA [Member] | |
Credit Linked Notes By Industry And Ratings [Line Items] | |
Credit linked note by industry percentage | 0.00% |
Retailers (Except Food And Drug) [Member] | A [Member] | |
Credit Linked Notes By Industry And Ratings [Line Items] | |
Credit linked note by industry percentage | 2.10% |
Retailers (Except Food And Drug) [Member] | BBB [Member] | |
Credit Linked Notes By Industry And Ratings [Line Items] | |
Credit linked note by industry percentage | 0.90% |
Retailers (Except Food And Drug) [Member] | BB [Member] | |
Credit Linked Notes By Industry And Ratings [Line Items] | |
Credit linked note by industry percentage | 0.50% |
Retailers (Except Food And Drug) [Member] | B [Member] | |
Credit Linked Notes By Industry And Ratings [Line Items] | |
Credit linked note by industry percentage | 0.00% |
Retailers (Except Food And Drug) [Member] | CCC [Member] | |
Credit Linked Notes By Industry And Ratings [Line Items] | |
Credit linked note by industry percentage | 0.00% |
Industrial Equipment [Member] | |
Credit Linked Notes By Industry And Ratings [Line Items] | |
Credit linked note by industry percentage | 2.80% |
Industrial Equipment [Member] | AAA [Member] | |
Credit Linked Notes By Industry And Ratings [Line Items] | |
Credit linked note by industry percentage | 0.00% |
Industrial Equipment [Member] | AA [Member] | |
Credit Linked Notes By Industry And Ratings [Line Items] | |
Credit linked note by industry percentage | 0.00% |
Industrial Equipment [Member] | A [Member] | |
Credit Linked Notes By Industry And Ratings [Line Items] | |
Credit linked note by industry percentage | 2.10% |
Industrial Equipment [Member] | BBB [Member] | |
Credit Linked Notes By Industry And Ratings [Line Items] | |
Credit linked note by industry percentage | 0.70% |
Industrial Equipment [Member] | BB [Member] | |
Credit Linked Notes By Industry And Ratings [Line Items] | |
Credit linked note by industry percentage | 0.00% |
Industrial Equipment [Member] | B [Member] | |
Credit Linked Notes By Industry And Ratings [Line Items] | |
Credit linked note by industry percentage | 0.00% |
Industrial Equipment [Member] | CCC [Member] | |
Credit Linked Notes By Industry And Ratings [Line Items] | |
Credit linked note by industry percentage | 0.00% |
Sovereign [Member] | |
Credit Linked Notes By Industry And Ratings [Line Items] | |
Credit linked note by industry percentage | 3.20% |
Sovereign [Member] | AAA [Member] | |
Credit Linked Notes By Industry And Ratings [Line Items] | |
Credit linked note by industry percentage | 0.00% |
Sovereign [Member] | AA [Member] | |
Credit Linked Notes By Industry And Ratings [Line Items] | |
Credit linked note by industry percentage | 1.20% |
Sovereign [Member] | A [Member] | |
Credit Linked Notes By Industry And Ratings [Line Items] | |
Credit linked note by industry percentage | 1.00% |
Sovereign [Member] | BBB [Member] | |
Credit Linked Notes By Industry And Ratings [Line Items] | |
Credit linked note by industry percentage | 0.70% |
Sovereign [Member] | BB [Member] | |
Credit Linked Notes By Industry And Ratings [Line Items] | |
Credit linked note by industry percentage | 0.30% |
Sovereign [Member] | B [Member] | |
Credit Linked Notes By Industry And Ratings [Line Items] | |
Credit linked note by industry percentage | 0.00% |
Sovereign [Member] | CCC [Member] | |
Credit Linked Notes By Industry And Ratings [Line Items] | |
Credit linked note by industry percentage | 0.00% |
Conglomerates [Member] | |
Credit Linked Notes By Industry And Ratings [Line Items] | |
Credit linked note by industry percentage | 3.20% |
Conglomerates [Member] | AAA [Member] | |
Credit Linked Notes By Industry And Ratings [Line Items] | |
Credit linked note by industry percentage | 0.00% |
Conglomerates [Member] | AA [Member] | |
Credit Linked Notes By Industry And Ratings [Line Items] | |
Credit linked note by industry percentage | 2.30% |
Conglomerates [Member] | A [Member] | |
Credit Linked Notes By Industry And Ratings [Line Items] | |
Credit linked note by industry percentage | 0.90% |
Conglomerates [Member] | BBB [Member] | |
Credit Linked Notes By Industry And Ratings [Line Items] | |
Credit linked note by industry percentage | 0.00% |
Conglomerates [Member] | BB [Member] | |
Credit Linked Notes By Industry And Ratings [Line Items] | |
Credit linked note by industry percentage | 0.00% |
Conglomerates [Member] | B [Member] | |
Credit Linked Notes By Industry And Ratings [Line Items] | |
Credit linked note by industry percentage | 0.00% |
Conglomerates [Member] | CCC [Member] | |
Credit Linked Notes By Industry And Ratings [Line Items] | |
Credit linked note by industry percentage | 0.00% |
Forest Products [Member] | |
Credit Linked Notes By Industry And Ratings [Line Items] | |
Credit linked note by industry percentage | 3.00% |
Forest Products [Member] | AAA [Member] | |
Credit Linked Notes By Industry And Ratings [Line Items] | |
Credit linked note by industry percentage | 0.00% |
Forest Products [Member] | AA [Member] | |
Credit Linked Notes By Industry And Ratings [Line Items] | |
Credit linked note by industry percentage | 0.00% |
Forest Products [Member] | A [Member] | |
Credit Linked Notes By Industry And Ratings [Line Items] | |
Credit linked note by industry percentage | 0.50% |
Forest Products [Member] | BBB [Member] | |
Credit Linked Notes By Industry And Ratings [Line Items] | |
Credit linked note by industry percentage | 1.10% |
Forest Products [Member] | BB [Member] | |
Credit Linked Notes By Industry And Ratings [Line Items] | |
Credit linked note by industry percentage | 1.40% |
Forest Products [Member] | B [Member] | |
Credit Linked Notes By Industry And Ratings [Line Items] | |
Credit linked note by industry percentage | 0.00% |
Forest Products [Member] | CCC [Member] | |
Credit Linked Notes By Industry And Ratings [Line Items] | |
Credit linked note by industry percentage | 0.00% |
Other [Member] | |
Credit Linked Notes By Industry And Ratings [Line Items] | |
Credit linked note by industry percentage | 42.70% |
Other [Member] | AAA [Member] | |
Credit Linked Notes By Industry And Ratings [Line Items] | |
Credit linked note by industry percentage | 0.00% |
Other [Member] | AA [Member] | |
Credit Linked Notes By Industry And Ratings [Line Items] | |
Credit linked note by industry percentage | 4.10% |
Other [Member] | A [Member] | |
Credit Linked Notes By Industry And Ratings [Line Items] | |
Credit linked note by industry percentage | 13.80% |
Other [Member] | BBB [Member] | |
Credit Linked Notes By Industry And Ratings [Line Items] | |
Credit linked note by industry percentage | 18.20% |
Other [Member] | BB [Member] | |
Credit Linked Notes By Industry And Ratings [Line Items] | |
Credit linked note by industry percentage | 5.60% |
Other [Member] | B [Member] | |
Credit Linked Notes By Industry And Ratings [Line Items] | |
Credit linked note by industry percentage | 0.70% |
Other [Member] | CCC [Member] | |
Credit Linked Notes By Industry And Ratings [Line Items] | |
Credit linked note by industry percentage | 0.30% |
Variable Interest Entities ("60
Variable Interest Entities ("VIE's") (Consolidated Variable Interest Entity Asset and Liability Information) (Details) $ in Millions | Dec. 31, 2015USD ($)item | Dec. 31, 2014USD ($)item | |
Assets | |||
Disclosure Of Variable Interest Entities Assets And Liabilities [Line Items] | |||
Number of Instruments | item | [1] | 1 | 1 |
Notional Amounts | [1] | $ 479 | $ 423 |
Carrying Value | [1] | $ 598 | $ 598 |
Assets | Fixed maturity corporate asset-backed credit card loan securities | |||
Disclosure Of Variable Interest Entities Assets And Liabilities [Line Items] | |||
Number of Instruments | item | |||
Notional Amounts | |||
Carrying Value | $ 598 | $ 598 | |
Assets | Total Return Swap [Member] | |||
Disclosure Of Variable Interest Entities Assets And Liabilities [Line Items] | |||
Number of Instruments | item | 1 | 1 | |
Notional Amounts | $ 479 | $ 423 | |
Liabilities | |||
Disclosure Of Variable Interest Entities Assets And Liabilities [Line Items] | |||
Number of Instruments | item | [2] | 4 | 4 |
Notional Amounts | [2] | $ 600 | $ 600 |
Carrying Value | [2] | $ 4 | $ 13 |
Liabilities | Credit default swaps | Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments | |||
Disclosure Of Variable Interest Entities Assets And Liabilities [Line Items] | |||
Number of Instruments | item | 2 | 2 | |
Notional Amounts | $ 600 | $ 600 | |
Carrying Value | $ 4 | $ 13 | |
Liabilities | Contingent forwards | Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments | |||
Disclosure Of Variable Interest Entities Assets And Liabilities [Line Items] | |||
Number of Instruments | item | 2 | 2 | |
Notional Amounts | |||
Carrying Value | |||
[1] | Reported in variable interest entities' fixed maturity securities on our Consolidated Balance Sheets. | ||
[2] | Reported in variable interest entities' liabilities on our Consolidated Balance Sheets. |
Variable Interest Entities ("61
Variable Interest Entities ("VIE's") (Consolidated Variable Interest Entity Settlement Payments and Mark-to-Market Adjustments) (Details) - Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | ||
Consolidated Variable Interest Entity Settlement Payments And Mark To Market Adjustments [Line Items] | |||
Gains (losses) for consolidated variable interest entities | [1] | $ 9 | $ 14 |
Credit default swaps | |||
Consolidated Variable Interest Entity Settlement Payments And Mark To Market Adjustments [Line Items] | |||
Gains (losses) for consolidated variable interest entities | $ 9 | $ 14 | |
[1] | Reported in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). |
Investments (Narrative) (Detail
Investments (Narrative) (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015USD ($)item | Dec. 31, 2014USD ($)item | Dec. 31, 2013USD ($) | |
Increase (decrease) in gross AFS securities unrealized losses | $ 1,600 | ||
Trading Securities, Unrealized Holding Gains (Losses) | $ (100) | $ 45 | $ (172) |
Number of partnerships in alternative investment portfolio | item | 190 | 156 | |
Alternative investments as a percentage of overall invested assets | 1.00% | 1.00% | |
Fair value of collateral received that we are permitted to sell or re-pledge | $ 174 | ||
Investment commitments | 1,300 | ||
Investment commitments for limited partnerships | 744 | ||
Investment commitments for private placements | 330 | ||
Investment commitments for mortgage loans on real estate | $ 257 | ||
California [Member] | |||
Largest mortgage loan concentration in geographic region | 21.00% | 23.00% | |
Texas [Member] | |||
Largest mortgage loan concentration in geographic region | 10.00% | 9.00% | |
Federal Home Loan Mortgage Corporation | |||
Fair value | $ 1,800 | $ 2,200 | |
Concentration risk, percentage | 2.00% | 2.00% | |
Fannie Mae | |||
Fair value | $ 1,200 | $ 1,400 | |
Concentration risk, percentage | 1.00% | 1.00% | |
Utilities Industry [Member] | |||
Fair value | $ 12,800 | $ 12,800 | |
Concentration risk, percentage | 13.00% | 13.00% | |
Consumer Non-Cyclical Industry [Member] | |||
Fair value | $ 12,000 | $ 11,700 | |
Concentration risk, percentage | 12.00% | 11.00% | |
Corporate bonds [Member] | |||
Percentage of fair value rated as investment grade | 96.00% | 96.00% | |
Amortized cost of portfolio rated below investment grade | $ 3,600 | $ 3,300 | |
Fair value of portfolio rated below investment grade | $ 3,300 | $ 3,200 | |
ABS [Member] | |||
Percentage of fair value rated as investment grade | 96.00% | 88.00% | |
Amortized cost of portfolio rated below investment grade | $ 107 | $ 193 | |
Fair value of portfolio rated below investment grade | $ 92 | $ 176 | |
MBS | |||
Projected default rate on existing delinquencies on MBS (low end of range) | 10.00% | 10.00% | |
Projected default rate on existing delinquencies on MBS (high end of range) | 100.00% | 100.00% | |
Severity of second lien loans | 100.00% | ||
Severity of first lien loans | 30.00% |
Investments (Reconciliation Of
Investments (Reconciliation Of Available-For-Sale Securities From Cost Basis To Fair Value) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | |
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | |||
Amortized cost | $ 82,815 | $ 79,412 | |
Gross unrealized gains | 5,061 | 8,164 | |
Gross unrealized losses | 2,107 | 524 | |
Gross unrealized OTTI | [1] | (30) | (17) |
Fair value | 85,799 | 87,069 | |
Available-for-sale equity securities [Member] | |||
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | |||
Amortized cost | 226 | 216 | |
Gross unrealized gains | 17 | 15 | |
Gross unrealized losses | 6 | ||
Fair value | 237 | 231 | |
Fixed Maturity AFS Securities [Member] | |||
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | |||
Amortized cost | 82,589 | 79,196 | |
Gross unrealized gains | 5,044 | 8,149 | |
Gross unrealized losses | 2,101 | 524 | |
Gross unrealized OTTI | [1] | (30) | (17) |
Fair value | 85,562 | 86,838 | |
Corporate bonds [Member] | Fixed Maturity AFS Securities [Member] | |||
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | |||
Amortized cost | 70,993 | 67,153 | |
Gross unrealized gains | 3,924 | 6,711 | |
Gross unrealized losses | 1,984 | 443 | |
Gross unrealized OTTI | [1] | 2 | 5 |
Fair value | 72,931 | 73,416 | |
ABS [Member] | Fixed Maturity AFS Securities [Member] | |||
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | |||
Amortized cost | 1,064 | 1,087 | |
Gross unrealized gains | 41 | 56 | |
Gross unrealized losses | 17 | 20 | |
Gross unrealized OTTI | [1] | (13) | (7) |
Fair value | 1,101 | 1,130 | |
U.S. government bonds [Member] | Fixed Maturity AFS Securities [Member] | |||
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | |||
Amortized cost | 386 | 379 | |
Gross unrealized gains | 45 | 56 | |
Gross unrealized losses | 2 | ||
Fair value | 429 | 435 | |
Foreign government bonds [Member] | Fixed Maturity AFS Securities [Member] | |||
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | |||
Amortized cost | 464 | 473 | |
Gross unrealized gains | 61 | 68 | |
Gross unrealized losses | 1 | ||
Fair value | 524 | 541 | |
RMBS [Member] | Fixed Maturity AFS Securities [Member] | |||
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | |||
Amortized cost | 3,566 | 3,979 | |
Gross unrealized gains | 186 | 242 | |
Gross unrealized losses | 36 | 14 | |
Gross unrealized OTTI | [1] | (12) | (19) |
Fair value | 3,728 | 4,226 | |
CMBS [Member] | Fixed Maturity AFS Securities [Member] | |||
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | |||
Amortized cost | 364 | 554 | |
Gross unrealized gains | 10 | 23 | |
Gross unrealized losses | 2 | 1 | |
Gross unrealized OTTI | [1] | (4) | 6 |
Fair value | 376 | 570 | |
CLOs [Member] | Fixed Maturity AFS Securities [Member] | |||
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | |||
Amortized cost | 588 | 375 | |
Gross unrealized gains | 1 | ||
Gross unrealized losses | 3 | 2 | |
Gross unrealized OTTI | [1] | (3) | (2) |
Fair value | 589 | 375 | |
State and municipal bonds [Member] | Fixed Maturity AFS Securities [Member] | |||
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | |||
Amortized cost | 3,806 | 3,723 | |
Gross unrealized gains | 686 | 874 | |
Gross unrealized losses | 12 | 4 | |
Fair value | 4,480 | 4,593 | |
Hybrid and redeemable preferred securities [Member] | Fixed Maturity AFS Securities [Member] | |||
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | |||
Amortized cost | 762 | 886 | |
Gross unrealized gains | 88 | 108 | |
Gross unrealized losses | 44 | 40 | |
Fair value | 806 | 954 | |
VIEs' fixed maturity securities [Member] | Fixed Maturity AFS Securities [Member] | |||
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | |||
Amortized cost | 596 | 587 | |
Gross unrealized gains | 2 | 11 | |
Fair value | $ 598 | $ 598 | |
[1] | Includes unrealized gains and losses on impaired securities related to changes in the fair value of such securities subsequent to the impairment measurement date. |
Investments (Available-For-Sale
Investments (Available-For-Sale Securities By Contractual Maturities) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Available-for-sale Securities, Debt Maturities, Amortized Cost | ||
Amortized cost | $ 82,815 | $ 79,412 |
Available-for-sale Securities, Debt Maturities, Fair Value | ||
Fair Value | 85,799 | 87,069 |
Fixed Maturity AFS Securities [Member] | ||
Available-for-sale Securities, Debt Maturities, Amortized Cost | ||
Amortized cost | 82,589 | 79,196 |
Available-for-sale Securities, Debt Maturities, Fair Value | ||
Fair Value | 85,562 | $ 86,838 |
Fixed maturity AFS securities other than structured securities [Member] | Fixed Maturity AFS Securities [Member] | ||
Available-for-sale Securities, Debt Maturities, Amortized Cost | ||
Due in one year or less | 2,602 | |
Due after one year through five years | 18,144 | |
Due after five years through ten years | 20,211 | |
Due after ten years | 35,454 | |
Amortized cost | 76,411 | |
Available-for-sale Securities, Debt Maturities, Fair Value | ||
Due in one year or less | 2,637 | |
Due after one year through five years | 18,972 | |
Due after five years through ten years | 20,152 | |
Due after ten years | 37,409 | |
Fair Value | 79,170 | |
Structured securities [Member] | Fixed Maturity AFS Securities [Member] | ||
Available-for-sale Securities, Debt Maturities, Amortized Cost | ||
Amortized cost | 6,178 | |
Available-for-sale Securities, Debt Maturities, Fair Value | ||
Fair Value | $ 6,392 |
Investments (Fair Value And Gro
Investments (Fair Value And Gross Unrealized Losses In A Continuous Unrealized Loss Position) (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2015USD ($)security | Dec. 31, 2014USD ($)security | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ||
Less Than or Equal to Twelve Months | $ 21,873 | $ 5,642 |
Greater Than Twelve Months | 3,263 | 5,320 |
Continuous Unrealized Loss Position, Total | 25,136 | 10,962 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ||
Less Than or Equal to Twelve Months | 1,411 | 219 |
Greater Than Twelve Months | 724 | 354 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | $ 2,135 | $ 573 |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | security | 2,007 | 1,019 |
Available-for-sale equity securities [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ||
Less Than or Equal to Twelve Months | $ 47 | $ 37 |
Continuous Unrealized Loss Position, Total | 47 | 37 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ||
Less Than or Equal to Twelve Months | 6 | 1 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 6 | 1 |
Fixed Maturity AFS Securities [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ||
Less Than or Equal to Twelve Months | 21,826 | 5,605 |
Greater Than Twelve Months | 3,263 | 5,320 |
Continuous Unrealized Loss Position, Total | 25,089 | 10,925 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ||
Less Than or Equal to Twelve Months | 1,405 | 218 |
Greater Than Twelve Months | 724 | 354 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 2,129 | 572 |
Corporate bonds [Member] | Fixed Maturity AFS Securities [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ||
Less Than or Equal to Twelve Months | 20,380 | 4,799 |
Greater Than Twelve Months | 2,383 | 4,465 |
Continuous Unrealized Loss Position, Total | 22,763 | 9,264 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ||
Less Than or Equal to Twelve Months | 1,364 | 207 |
Greater Than Twelve Months | 623 | 244 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 1,987 | 451 |
ABS [Member] | Fixed Maturity AFS Securities [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ||
Less Than or Equal to Twelve Months | 213 | 91 |
Greater Than Twelve Months | 274 | 323 |
Continuous Unrealized Loss Position, Total | 487 | 414 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ||
Less Than or Equal to Twelve Months | 4 | 2 |
Greater Than Twelve Months | 29 | 41 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 33 | 43 |
U.S. government bonds [Member] | Fixed Maturity AFS Securities [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ||
Less Than or Equal to Twelve Months | 15 | |
Continuous Unrealized Loss Position, Total | 15 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ||
Less Than or Equal to Twelve Months | 2 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 2 | |
Foreign government bonds [Member] | Fixed Maturity AFS Securities [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ||
Less Than or Equal to Twelve Months | 37 | |
Continuous Unrealized Loss Position, Total | 37 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ||
Less Than or Equal to Twelve Months | 1 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 1 | |
RMBS [Member] | Fixed Maturity AFS Securities [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ||
Less Than or Equal to Twelve Months | 627 | 447 |
Greater Than Twelve Months | 371 | 241 |
Continuous Unrealized Loss Position, Total | 998 | 688 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ||
Less Than or Equal to Twelve Months | 21 | 7 |
Greater Than Twelve Months | 22 | 14 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 43 | 21 |
CMBS [Member] | Fixed Maturity AFS Securities [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ||
Less Than or Equal to Twelve Months | 116 | 121 |
Greater Than Twelve Months | 11 | 19 |
Continuous Unrealized Loss Position, Total | 127 | 140 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ||
Less Than or Equal to Twelve Months | 2 | 1 |
Greater Than Twelve Months | 2 | 10 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 4 | 11 |
CLOs [Member] | Fixed Maturity AFS Securities [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ||
Less Than or Equal to Twelve Months | 271 | 110 |
Greater Than Twelve Months | 49 | 70 |
Continuous Unrealized Loss Position, Total | 320 | 180 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ||
Less Than or Equal to Twelve Months | 2 | 1 |
Greater Than Twelve Months | 1 | 1 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 3 | 2 |
State and municipal bonds [Member] | Fixed Maturity AFS Securities [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ||
Less Than or Equal to Twelve Months | 129 | 6 |
Greater Than Twelve Months | 27 | 26 |
Continuous Unrealized Loss Position, Total | 156 | 32 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ||
Less Than or Equal to Twelve Months | 8 | |
Greater Than Twelve Months | 4 | 4 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 12 | 4 |
Hybrid and redeemable preferred securities [Member] | Fixed Maturity AFS Securities [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ||
Less Than or Equal to Twelve Months | 38 | 31 |
Greater Than Twelve Months | 148 | 176 |
Continuous Unrealized Loss Position, Total | 186 | 207 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ||
Less Than or Equal to Twelve Months | 1 | |
Greater Than Twelve Months | 43 | 40 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | $ 44 | $ 40 |
Investments (Schedule Of Availa
Investments (Schedule Of Available-For-Sale Securities Whose Value Is Below Amortized Cost) (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015USD ($)security | Dec. 31, 2014USD ($)security | ||
Available For Sale Securities In Unrealized Loss Position With Loss Severity Greater Than 20 Percent [Line Items] | |||
Fair Value | $ 85,799 | $ 87,069 | |
Fair Value Decline, Greater Than 20% [Member] | |||
Available For Sale Securities In Unrealized Loss Position With Loss Severity Greater Than 20 Percent [Line Items] | |||
Fair Value | 1,852 | 298 | |
Gross Unrealized Losses | 907 | 123 | |
Gross Unrealized OTTI | $ 17 | $ 33 | |
Number of Securities | security | [1] | 219 | 97 |
Fair Value Decline, Greater Than 20% [Member] | Less than six months | |||
Available For Sale Securities In Unrealized Loss Position With Loss Severity Greater Than 20 Percent [Line Items] | |||
Fair Value | $ 1,584 | $ 48 | |
Gross Unrealized Losses | 701 | $ 19 | |
Gross Unrealized OTTI | $ 2 | ||
Number of Securities | security | [1] | 138 | 12 |
Fair Value Decline, Greater Than 20% [Member] | Six months or greater, but less than nine months | |||
Available For Sale Securities In Unrealized Loss Position With Loss Severity Greater Than 20 Percent [Line Items] | |||
Fair Value | $ 76 | $ 8 | |
Gross Unrealized Losses | $ 85 | $ 7 | |
Number of Securities | security | [1] | 19 | 3 |
Fair Value Decline, Greater Than 20% [Member] | Nine months or greater, but less than twelve months | |||
Available For Sale Securities In Unrealized Loss Position With Loss Severity Greater Than 20 Percent [Line Items] | |||
Fair Value | $ 39 | ||
Gross Unrealized Losses | $ 38 | ||
Number of Securities | security | [1] | 2 | |
Fair Value Decline, Greater Than 20% [Member] | Twelve months or greater | |||
Available For Sale Securities In Unrealized Loss Position With Loss Severity Greater Than 20 Percent [Line Items] | |||
Fair Value | $ 153 | $ 242 | |
Gross Unrealized Losses | 83 | 97 | |
Gross Unrealized OTTI | $ 15 | $ 33 | |
Number of Securities | security | [1] | 60 | 82 |
[1] | We may reflect a security in more than one aging category based on various purchase dates. |
Investments (Schedule Of Change
Investments (Schedule Of Changes in Amount Of Credit Losses Of OTTI Recognized In Net Income (Loss)) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Investments [Abstract] | |||
Balance as of beginning of period | $ 380 | $ 404 | $ 424 |
Increases attributable to: | |||
Credit losses on securities for which an OTTI was not previously recognized | 19 | 4 | 39 |
Credit losses on securities for which an OTTI was previously recognized | 16 | 16 | 43 |
Decreases attributable to: | |||
Securities sold, paid down or matured | (33) | (44) | (102) |
Balance as of end of period | $ 382 | $ 380 | $ 404 |
Investments (Schedule of Detail
Investments (Schedule of Details Of The Amount Of Credit Losses Of OTTI Recognized In Net Income (Loss)) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||||
Amortized Cost | $ 640 | $ 763 | ||
Gross Unrealized Losses and OTTI | 30 | 17 | ||
Fair Value | 670 | 780 | ||
OTTI in Credit Losses | 382 | 380 | $ 404 | $ 424 |
Corporate bonds [Member] | ||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||||
Amortized Cost | 31 | 38 | ||
Gross Unrealized Losses and OTTI | (2) | (5) | ||
Fair Value | 29 | 33 | ||
OTTI in Credit Losses | 28 | 20 | ||
ABS [Member] | ||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||||
Amortized Cost | 199 | 221 | ||
Gross Unrealized Losses and OTTI | 13 | 7 | ||
Fair Value | 212 | 228 | ||
OTTI in Credit Losses | 108 | 103 | ||
RMBS [Member] | ||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||||
Amortized Cost | 365 | 447 | ||
Gross Unrealized Losses and OTTI | 12 | 19 | ||
Fair Value | 377 | 466 | ||
OTTI in Credit Losses | 193 | 190 | ||
CMBS [Member] | ||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||||
Amortized Cost | 34 | 46 | ||
Gross Unrealized Losses and OTTI | 4 | (6) | ||
Fair Value | 38 | 40 | ||
OTTI in Credit Losses | 48 | 62 | ||
CLOs [Member] | ||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||||
Amortized Cost | 11 | 11 | ||
Gross Unrealized Losses and OTTI | 3 | 2 | ||
Fair Value | 14 | 13 | ||
OTTI in Credit Losses | $ 5 | $ 5 |
Investments (Fair Value of Trad
Investments (Fair Value of Trading Securities) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Trading securities | $ 1,854 | $ 2,065 |
Corporate bonds [Member] | Fixed Maturity AFS Securities [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Trading securities | 1,416 | 1,528 |
ABS [Member] | Fixed Maturity AFS Securities [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Trading securities | 25 | 32 |
U.S. government bonds [Member] | Fixed Maturity AFS Securities [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Trading securities | 221 | 278 |
Foreign government bonds [Member] | Fixed Maturity AFS Securities [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Trading securities | 25 | 25 |
RMBS [Member] | Fixed Maturity AFS Securities [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Trading securities | 104 | 135 |
CMBS [Member] | Fixed Maturity AFS Securities [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Trading securities | 4 | 4 |
CLOs [Member] | Fixed Maturity AFS Securities [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Trading securities | 10 | 9 |
State and municipal bonds [Member] | Fixed Maturity AFS Securities [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Trading securities | 18 | 22 |
Hybrid and redeemable preferred securities [Member] | Fixed Maturity AFS Securities [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Trading securities | $ 31 | $ 32 |
Investments (Composition Of Cur
Investments (Composition Of Current And Past Due Mortgage Loans On Real Estate) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Mortgage Loans On Real Estate Aging [Abstract] | ||||
Current | $ 8,677 | $ 7,565 | ||
Greater than 90 days past due | 8 | |||
Valuation allowance associated with impaired mortgage loans on real estate | (2) | (3) | $ (3) | $ (21) |
Unamortized premium (discount) | 3 | 4 | ||
Total carrying value | $ 8,678 | $ 7,574 |
Investments (Schedule Of Impair
Investments (Schedule Of Impaired Mortgage Loans) (Details) $ in Millions | Dec. 31, 2015USD ($)item | Dec. 31, 2014USD ($)item | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) |
Information about impaired mortgage loans on real estate | ||||
Number of impaired mortgage loans on real estate | item | 2 | 3 | ||
Principal balance of impaired mortgage loans on real estate | $ 8 | $ 26 | ||
Valuation allowance associated with impaired mortgage loans on real estate | (2) | (3) | $ (3) | $ (21) |
Carrying value of impaired mortgage loans on real estate | $ 6 | $ 23 |
Investments (Changes In The Val
Investments (Changes In The Valuation Allowance Of Impaired Mortgage Loans On Real Estate (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Allowance for Losses | |||
Balance as of beginning-of-year | $ 3 | $ 3 | $ 21 |
Additions | 3 | ||
Charge-offs, net of recoveries | $ (1) | (21) | |
Balance as of end-of-period | $ 2 | $ 3 | $ 3 |
Investments (Average Carrying V
Investments (Average Carrying Value On The Impaired Mortgage Loans On Real Estate) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Information about impaired mortgage loans on real estate | |||
Average carrying value for impaired loans on real estate | $ 17 | $ 24 | $ 34 |
Interest income recognized on impaired mortgage loans on real estate | 1 | 2 | 2 |
Interest income collected on impaired mortgage loans on real estate | $ 1 | $ 2 | $ 2 |
Investments (Credit Quality Ind
Investments (Credit Quality Indicators For Mortgage Loans) (Details) $ in Millions | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
Mortgage Loans Credit Quality [Line Items] | ||
Principal amount of mortgage loans on real estate | $ 8,678 | $ 7,574 |
Percentage of total mortgage loans on real estate | 100.00% | 100.00% |
Loan-to-value ratio, less than 65% [Member] | ||
Mortgage Loans Credit Quality [Line Items] | ||
Principal amount of mortgage loans on real estate | $ 7,718 | $ 6,596 |
Percentage of total mortgage loans on real estate | 88.90% | 87.10% |
Debt-service coverage ratio | 2.06 | 1.90 |
Loan-to-value ratio, 65% to 74% [Member] | ||
Mortgage Loans Credit Quality [Line Items] | ||
Principal amount of mortgage loans on real estate | $ 653 | $ 631 |
Percentage of total mortgage loans on real estate | 7.50% | 8.30% |
Debt-service coverage ratio | 1.60 | 1.55 |
Loan-to-value ratio, 75% to 100% [Member] | ||
Mortgage Loans Credit Quality [Line Items] | ||
Principal amount of mortgage loans on real estate | $ 301 | $ 316 |
Percentage of total mortgage loans on real estate | 3.50% | 4.20% |
Debt-service coverage ratio | 0.83 | 0.77 |
Loan-To-Value Ratio, Greater Than 100% [Member] | ||
Mortgage Loans Credit Quality [Line Items] | ||
Principal amount of mortgage loans on real estate | $ 6 | $ 31 |
Percentage of total mortgage loans on real estate | 0.10% | 0.40% |
Debt-service coverage ratio | 1.05 | 0.77 |
Investments (Net Investment Inc
Investments (Net Investment Income) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Investment income | $ 4,952 | $ 4,976 | $ 4,876 |
Investment expense | (125) | (117) | (122) |
Total net investment income | 4,827 | 4,859 | 4,754 |
Fixed Maturity AFS Securities [Member] | AFS Securities [Member] | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Investment income | 4,079 | 4,041 | 3,976 |
Available-for-sale equity securities [Member] | AFS Securities [Member] | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Investment income | 9 | 9 | 6 |
Trading securities [Member] | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Investment income | 107 | 125 | 137 |
Mortgage loans on real estate [Member] | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Investment income | 395 | 378 | 388 |
Real estate [Member] | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Investment income | 4 | 7 | 13 |
Policy loans [Member] | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Investment income | 152 | 155 | 155 |
Invested cash [Member] | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Investment income | 3 | 2 | 3 |
Commercial mortgage loan prepayment and bond makewhole premiums [Member] | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Investment income | 105 | 138 | 117 |
Alternative investments [Member] | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Investment income | 88 | 130 | 86 |
Consent fees [Member] | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Investment income | 5 | 2 | 4 |
Other Investments [Member] | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Investment income | $ 5 | (11) | $ (9) |
Parent Company [Member] | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Total net investment income | $ 1 |
Investments (Realized Gain (Los
Investments (Realized Gain (Loss) Related To Certain Investments) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Realized gain (loss) related to certain investments | ||||
Gain (loss) on other investments | $ (9) | $ 3 | $ (3) | |
Associated amortization expense of DAC, VOBA, DSI and DFEL and changes in other contract holder funds | (26) | (32) | (28) | |
Total realized gain (loss) related to certain investments | [1] | (88) | (18) | (98) |
Fixed Maturity AFS Securities [Member] | ||||
Realized gain (loss) related to certain investments | ||||
AFS securities. Gross gains | [2] | 43 | 29 | 21 |
AFS securities. Gross losses | [2] | (99) | (23) | (94) |
Available-for-sale equity securities [Member] | ||||
Realized gain (loss) related to certain investments | ||||
AFS securities. Gross gains | $ 3 | $ 5 | 8 | |
AFS securities. Gross losses | $ (2) | |||
[1] | See "Realized Gain (Loss) Related to Certain Investments" section in Note 5. | |||
[2] | These amounts are represented net of related fair value hedging activity. See Note 6 for more information. |
Investments (OTTI Recognized In
Investments (OTTI Recognized In Net Income (Loss) And OCI) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
OTTI Recognized in Net Income (Loss) | |||
Gross OTTI recognized in net income (loss) | $ (60) | $ (20) | $ (83) |
Associated amortization expense of DAC, VOBA, DSI and DFEL | 6 | 4 | 13 |
Net OTTI recognized in net income (loss), pre-tax | (54) | (16) | (70) |
Portion of OTTI Recognized in OCI | |||
Gross OTTI recognized in OCI | 30 | 12 | 11 |
Change in DAC, VOBA, DSI and DFEL | (4) | (2) | (1) |
Net portion of OTTI recognized in OCI, pre-tax | 26 | 10 | 10 |
Available-for-sale equity securities [Member] | |||
OTTI Recognized in Net Income (Loss) | |||
Gross OTTI recognized in net income (loss) | (1) | ||
Fixed maturity securities [Member] | |||
OTTI Recognized in Net Income (Loss) | |||
Gross OTTI recognized in net income (loss) | (60) | (20) | (82) |
Fixed maturity securities [Member] | Corporate bonds [Member] | |||
OTTI Recognized in Net Income (Loss) | |||
Gross OTTI recognized in net income (loss) | (45) | (1) | (16) |
Fixed maturity securities [Member] | ABS [Member] | |||
OTTI Recognized in Net Income (Loss) | |||
Gross OTTI recognized in net income (loss) | (7) | (10) | (20) |
Fixed maturity securities [Member] | RMBS [Member] | |||
OTTI Recognized in Net Income (Loss) | |||
Gross OTTI recognized in net income (loss) | (7) | (8) | (31) |
Fixed maturity securities [Member] | CMBS [Member] | |||
OTTI Recognized in Net Income (Loss) | |||
Gross OTTI recognized in net income (loss) | $ (1) | $ (1) | $ (15) |
Investments (Payables For Colla
Investments (Payables For Collateral On Investments) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | ||
Carrying Value Of Payables For Collateral On Investments [Abstract] | |||
Collateral payable held for derivative investments | [1] | $ 1,387 | $ 1,673 |
Securities pledged under securities lending agreements | [2] | 242 | 204 |
Securities pledged under reverse repurchase agreements | [3] | 673 | 607 |
Investments pledged for Federal Home Loan Bank of Indianapolis ('FHLBI') | [4] | 2,355 | 1,925 |
Total payables for collateral on investments | 4,657 | 4,409 | |
Fair Value Of Related Investments Or Collateral [Abstract] | |||
Collateral payable held for derivative investments | [1] | 1,387 | 1,673 |
Securities pledged under securities lending agreements | [2] | 231 | 196 |
Securities pledged under reverse repurchase agreements | [3] | 739 | 666 |
Investments pledged for Federal Home Loan Bank of Indianapolis('FHLBI') | [4] | 3,391 | 3,151 |
Total payables for collateral on investments | $ 5,748 | 5,686 | |
Percentage of the fair value of domestic securities obtained as collateral under securities lending agreements. | 102.00% | ||
Percentage of the fair value of foreign securities obtained as collateral under securities lending agreements. | 105.00% | ||
Percentage of the fair value of securities obtained as collateral under reverse repurchase agreements. | 95.00% | ||
Parent Company [Member] | |||
Carrying Value Of Payables For Collateral On Investments [Abstract] | |||
Total payables for collateral on investments | $ 94 | $ 96 | |
Minimum [Member] | |||
Fair Value Of Related Investments Or Collateral [Abstract] | |||
Percentage of the fair value of FHLBI securities obtained as collateral under securities pledged for FHLBI for AFS Securities | 105.00% | ||
Percentage of the fair value of FHLBI securities obtained as collateral under securities pledged for FHLBI for mortgage loan | 155.00% | ||
Maximum [Member] | |||
Fair Value Of Related Investments Or Collateral [Abstract] | |||
Percentage of the fair value of FHLBI securities obtained as collateral under securities pledged for FHLBI for AFS Securities | 115.00% | ||
Percentage of the fair value of FHLBI securities obtained as collateral under securities pledged for FHLBI for mortgage loan | 175.00% | ||
[1] | We obtain collateral based upon contractual provisions with our counterparties. These agreements take into consideration the counterparties' credit rating as compared to ours, the fair value of the derivative investments and specified thresholds that if exceeded result in the receipt of cash that is typically invested in cash and invested cash. See Note 6 for additional information. | ||
[2] | Our pledged securities under securities lending agreements are included in fixed maturity AFS securities on our Consolidated Balance Sheets. We generally obtain collateral in an amount equal to 102% and 105% of the fair value of the domestic and foreign securities, respectively. We value collateral daily and obtain additional collateral when deemed appropriate. The cash received in our securities lending program is typically invested in cash and invested cash or fixed maturity AFS securities. | ||
[3] | Our pledged securities under repurchase agreements are included in fixed maturity AFS securities on our Consolidated Balance Sheets. We obtain collateral in an amount equal to 95% of the fair value of the securities, and our agreements with third parties contain contractual provisions to allow for additional collateral to be obtained when necessary. The cash received in our repurchase program is typically invested in fixed maturity AFS securities. | ||
[4] | Our pledged investments for FHLBI are included in fixed maturity AFS securities and mortgage loans on real estate on our Consolidated Balance Sheets. The collateral requirements are generally 105% to 115% of the fair value for fixed maturity AFS securities and 155% to 175% of the fair value for mortgage loans on real estate. The cash received in these transactions is primarily invested in cash and invested cash or fixed maturity AFS securities. |
Investments (Schedule Of Increa
Investments (Schedule Of Increase (Decrease) In Payables For Collateral On Investments) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Increase (decrease) in payables for collateral on investments | |||
Collateral payable held for derivative investments | $ (286) | $ 1,035 | $ (1,929) |
Securities pledged under securities lending agreements | 38 | 20 | (13) |
Securities pledged under reverse repurchase agreements | 66 | 77 | 250 |
Securities pledged for TALF | (36) | (1) | |
Securities pledged for FHLBI | 430 | 75 | 750 |
Total increase (decrease) in payables for collateral on investments | $ 248 | $ 1,171 | $ (943) |
Investments (Schedule of Securi
Investments (Schedule of Securities Pledged by Contractual Maturity) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | |
Repurchase Agreements and Repurchase-to-Maturity | [1] | $ 673 | $ 607 |
Securities Lending Transactions | [2] | 242 | $ 204 |
Total borrowings | 915 | ||
Gross amount of recognized liabilities for repurchase | 914 | ||
RMBS [Member] | |||
Repurchase Agreements and Repurchase-to-Maturity | 250 | ||
Corporate bonds [Member] | |||
Repurchase Agreements and Repurchase-to-Maturity | 423 | ||
Securities Lending Transactions | 242 | ||
Overnight and Continuous [Member] | |||
Securities Lending Transactions | 242 | ||
Total borrowings | 242 | ||
Overnight and Continuous [Member] | Corporate bonds [Member] | |||
Securities Lending Transactions | 242 | ||
30 to 90 Days [Member] | |||
Repurchase Agreements and Repurchase-to-Maturity | 275 | ||
Total borrowings | 275 | ||
30 to 90 Days [Member] | Corporate bonds [Member] | |||
Repurchase Agreements and Repurchase-to-Maturity | 275 | ||
Greater than 90 days [Member] | |||
Repurchase Agreements and Repurchase-to-Maturity | 398 | ||
Total borrowings | 398 | ||
Greater than 90 days [Member] | RMBS [Member] | |||
Repurchase Agreements and Repurchase-to-Maturity | 250 | ||
Greater than 90 days [Member] | Corporate bonds [Member] | |||
Repurchase Agreements and Repurchase-to-Maturity | $ 148 | ||
[1] | Our pledged securities under repurchase agreements are included in fixed maturity AFS securities on our Consolidated Balance Sheets. We obtain collateral in an amount equal to 95% of the fair value of the securities, and our agreements with third parties contain contractual provisions to allow for additional collateral to be obtained when necessary. The cash received in our repurchase program is typically invested in fixed maturity AFS securities. | ||
[2] | Our pledged securities under securities lending agreements are included in fixed maturity AFS securities on our Consolidated Balance Sheets. We generally obtain collateral in an amount equal to 102% and 105% of the fair value of the domestic and foreign securities, respectively. We value collateral daily and obtain additional collateral when deemed appropriate. The cash received in our securities lending program is typically invested in cash and invested cash or fixed maturity AFS securities. |
Derivative Instruments (Narrati
Derivative Instruments (Narrative) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Derivative Instruments [Abstract] | |
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | $ 15 |
Collateral Requirement If Netting Agreements Not In Place | 9 |
Exposure Associated With Collateralization Events | $ 15 |
Derivative Instruments (Outstan
Derivative Instruments (Outstanding Derivative Instruments With Off-Balance-Sheet Risks) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | |
Outstanding derivative instruments with off-balance-sheet risks | |||
Notional Amounts | $ 105,333 | $ 83,976 | |
Asset Fair Value | 2,313 | 2,587 | |
Liability Fair Value | 2,994 | 2,301 | |
Interest rate contracts [Member] | |||
Outstanding derivative instruments with off-balance-sheet risks | |||
Notional Amounts | [1] | 76,364 | |
Foreign currency contracts [Member] | |||
Outstanding derivative instruments with off-balance-sheet risks | |||
Notional Amounts | [2] | 984 | |
Equity market contracts [Member] | |||
Outstanding derivative instruments with off-balance-sheet risks | |||
Notional Amounts | 27,882 | ||
Credit contracts [Member] | |||
Outstanding derivative instruments with off-balance-sheet risks | |||
Notional Amounts | 103 | ||
Cash flow hedges | Designated as Hedging Instrument [Member] | |||
Outstanding derivative instruments with off-balance-sheet risks | |||
Notional Amounts | 3,847 | 4,196 | |
Asset Fair Value | 276 | 453 | |
Liability Fair Value | 48 | 219 | |
Derivative investments [Member] | Interest rate contracts [Member] | Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments | |||
Outstanding derivative instruments with off-balance-sheet risks | |||
Notional Amounts | [3] | 71,898 | 54,401 |
Asset Fair Value | [3] | 1,088 | 989 |
Liability Fair Value | [3] | 330 | 342 |
Derivative investments [Member] | Foreign currency contracts [Member] | Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments | |||
Outstanding derivative instruments with off-balance-sheet risks | |||
Notional Amounts | [3] | 74 | 68 |
Derivative investments [Member] | Equity market contracts [Member] | Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments | |||
Outstanding derivative instruments with off-balance-sheet risks | |||
Notional Amounts | [3] | 27,882 | 24,310 |
Asset Fair Value | [3] | 680 | 886 |
Liability Fair Value | [3] | 269 | 243 |
Derivative investments [Member] | Cash flow hedges | Interest rate contracts [Member] | Designated as Hedging Instrument [Member] | |||
Outstanding derivative instruments with off-balance-sheet risks | |||
Notional Amounts | [3] | 2,937 | 3,554 |
Asset Fair Value | [3] | 192 | 408 |
Liability Fair Value | [3] | 46 | 198 |
Derivative investments [Member] | Cash flow hedges | Foreign currency contracts [Member] | Designated as Hedging Instrument [Member] | |||
Outstanding derivative instruments with off-balance-sheet risks | |||
Notional Amounts | [3] | 910 | 642 |
Asset Fair Value | [3] | 84 | 45 |
Liability Fair Value | [3] | 2 | 21 |
Derivative investments [Member] | Fair value hedges | Interest rate contracts [Member] | Designated as Hedging Instrument [Member] | |||
Outstanding derivative instruments with off-balance-sheet risks | |||
Notional Amounts | [3] | 1,529 | 875 |
Asset Fair Value | [3] | 269 | 259 |
Liability Fair Value | [3] | 198 | |
Other Liabilities [Member] | Credit contracts [Member] | Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments | |||
Outstanding derivative instruments with off-balance-sheet risks | |||
Notional Amounts | [4] | 103 | 126 |
Liability Fair Value | [4] | 9 | 3 |
Other Liabilities [Member] | Embedded derivatives - GLB reserves [Member] | Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments | |||
Outstanding derivative instruments with off-balance-sheet risks | |||
Liability Fair Value | [4] | 953 | 174 |
Reinsurance related [Member] | Embedded derivatives - Reinsurance related [Member] | Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments | |||
Outstanding derivative instruments with off-balance-sheet risks | |||
Liability Fair Value | [5] | 87 | 150 |
Future contract benefits [Member] | Embedded derivatives - Indexed annuity and IUL contracts [Member] | Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments | |||
Outstanding derivative instruments with off-balance-sheet risks | |||
Liability Fair Value | [6] | $ 1,100 | $ 1,170 |
[1] | As of December 31, 2015, the latest maturity date for which we were hedging our exposure to the variability in future cash flows for these instruments was April 2067. | ||
[2] | As of December 31, 2015, the latest maturity date for which we were hedging our exposure to the variability in future cash flows for these instruments was December 2045. | ||
[3] | Reported in derivative investments and other liabilities on our Consolidated Balance Sheets. | ||
[4] | Reported in other liabilities on our Consolidated Balance Sheets. | ||
[5] | Reported in reinsurance related embedded derivatives on our Consolidated Balance Sheets. | ||
[6] | Reported in future contract benefits on our Consolidated Balance Sheets. |
Derivative Instruments (Maturit
Derivative Instruments (Maturity Of The Notional Amounts Of Derivative Financial Instruments) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | ||
Maturity of the notional amounts of derivative financial instruments | |||
Remaining Life Less Than 1 Year | $ 28,605 | ||
Remaining Life - 1 - 5 Years | 39,696 | ||
Remaining Life - 6 - 10 Years | 21,641 | ||
Remaining Life - 11 - 30 Years | 13,911 | ||
Remaining Life Over - 30 Years | 1,480 | ||
Remaining Life - Total Years | 105,333 | $ 83,976 | |
Interest rate contracts [Member] | |||
Maturity of the notional amounts of derivative financial instruments | |||
Remaining Life Less Than 1 Year | [1] | 10,408 | |
Remaining Life - 1 - 5 Years | [1] | 32,704 | |
Remaining Life - 6 - 10 Years | [1] | 18,554 | |
Remaining Life - 11 - 30 Years | [1] | 13,485 | |
Remaining Life Over - 30 Years | [1] | 1,213 | |
Remaining Life - Total Years | [1] | $ 76,364 | |
Derivative maturity date | Apr. 20, 2067 | ||
Foreign currency contracts [Member] | |||
Maturity of the notional amounts of derivative financial instruments | |||
Remaining Life Less Than 1 Year | [2] | $ 104 | |
Remaining Life - 1 - 5 Years | [2] | 138 | |
Remaining Life - 6 - 10 Years | [2] | 334 | |
Remaining Life - 11 - 30 Years | [2] | $ 408 | |
Remaining Life Over - 30 Years | [2] | ||
Remaining Life - Total Years | [2] | $ 984 | |
Derivative maturity date | Dec. 10, 2045 | ||
Equity market contracts [Member] | |||
Maturity of the notional amounts of derivative financial instruments | |||
Remaining Life Less Than 1 Year | $ 18,048 | ||
Remaining Life - 1 - 5 Years | 6,796 | ||
Remaining Life - 6 - 10 Years | 2,753 | ||
Remaining Life - 11 - 30 Years | 18 | ||
Remaining Life Over - 30 Years | 267 | ||
Remaining Life - Total Years | 27,882 | ||
Credit contracts [Member] | |||
Maturity of the notional amounts of derivative financial instruments | |||
Remaining Life Less Than 1 Year | 45 | ||
Remaining Life - 1 - 5 Years | $ 58 | ||
Remaining Life - 6 - 10 Years | |||
Remaining Life - 11 - 30 Years | |||
Remaining Life Over - 30 Years | |||
Remaining Life - Total Years | $ 103 | ||
[1] | As of December 31, 2015, the latest maturity date for which we were hedging our exposure to the variability in future cash flows for these instruments was April 2067. | ||
[2] | As of December 31, 2015, the latest maturity date for which we were hedging our exposure to the variability in future cash flows for these instruments was December 2045. |
Derivative Instruments (Change
Derivative Instruments (Change In Our Unrealized Gain On Derivative Instruments In Accumulated OCI) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Change in our unrealized gain on derivative instruments in accumulated OCI | ||||
Balance as of beginning-of-year | $ 3,096 | |||
Federal income tax expense (benefit) | 276 | $ 483 | $ 387 | |
Balance as of end-of-period | 845 | 3,096 | ||
Parent Company [Member] | ||||
Change in our unrealized gain on derivative instruments in accumulated OCI | ||||
Balance as of beginning-of-year | 3,096 | |||
Federal income tax expense (benefit) | (66) | (77) | (73) | |
Balance as of end-of-period | 845 | 3,096 | ||
Unrealized Gain (Loss) on Derivative Instruments [Member] | ||||
Change in our unrealized gain on derivative instruments in accumulated OCI | ||||
Balance as of beginning-of-year | 139 | 256 | 163 | |
Unrealized holding gains (losses) arising during the period | (241) | (250) | 143 | |
Change in foreign currency exchange rate adjustment | 48 | 50 | (19) | |
Change in DAC, VOBA, DSI and DFEL | 2 | 2 | 5 | |
Income tax benefit (expense) | 66 | 69 | (45) | |
Reclassification adjustment for gains (losses) included in net income (loss) | (183) | (19) | (15) | |
Associated amortization of DAC, VOBA, DSI and DFEL | 1 | 1 | 1 | |
Federal income tax expense (benefit) | 64 | 6 | 5 | |
Balance as of end-of-period | 132 | 139 | 256 | |
Unrealized Gain (Loss) on Derivative Instruments [Member] | Cash flow hedges | Interest rate contracts [Member] | ||||
Change in our unrealized gain on derivative instruments in accumulated OCI | ||||
Unrealized holding gains (losses) arising during the period | (258) | (286) | 167 | |
Unrealized Gain (Loss) on Derivative Instruments [Member] | Cash flow hedges | Interest rate contracts [Member] | Net Investment Income [Member] | ||||
Change in our unrealized gain on derivative instruments in accumulated OCI | ||||
Reclassification adjustment for gains (losses) included in net income (loss) | [1] | (190) | (22) | (21) |
Unrealized Gain (Loss) on Derivative Instruments [Member] | Cash flow hedges | Interest rate contracts [Member] | Interest and Debt Expense [Member] | ||||
Change in our unrealized gain on derivative instruments in accumulated OCI | ||||
Reclassification adjustment for gains (losses) included in net income (loss) | [2] | 1 | 3 | 3 |
Unrealized Gain (Loss) on Derivative Instruments [Member] | Cash flow hedges | Foreign currency contracts [Member] | ||||
Change in our unrealized gain on derivative instruments in accumulated OCI | ||||
Unrealized holding gains (losses) arising during the period | 17 | $ 36 | (24) | |
Unrealized Gain (Loss) on Derivative Instruments [Member] | Cash flow hedges | Foreign currency contracts [Member] | Net Investment Income [Member] | ||||
Change in our unrealized gain on derivative instruments in accumulated OCI | ||||
Reclassification adjustment for gains (losses) included in net income (loss) | [1] | $ 6 | $ 3 | |
[1] | The OCI offset is reported within net investment income on our Consolidated Statements of Comprehensive Income (Loss). | |||
[2] | The OCI offset is reported within interest and debt expense on our Consolidated Statements of Comprehensive Income (Loss). |
Derivative Instruments (Gains (
Derivative Instruments (Gains (Losses) On Derivative Instruments Recorded Within Income (Loss) From Continuing Operations) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Gains (losses) | ||||
Gains (losses) | $ (784) | $ (540) | $ (330) | |
Designated as Hedging Instrument [Member] | Cash flow hedges | ||||
Gains (losses) | ||||
Gains (losses) | 15 | (22) | (18) | |
Designated as Hedging Instrument [Member] | Fair value hedges | ||||
Gains (losses) | ||||
Gains (losses) | (196) | 35 | 36 | |
Designated as Hedging Instrument [Member] | Net Investment Income [Member] | Cash flow hedges | Interest rate contracts [Member] | ||||
Gains (losses) | ||||
Gains (losses) | [1] | 8 | (22) | (21) |
Designated as Hedging Instrument [Member] | Net Investment Income [Member] | Cash flow hedges | Foreign currency contracts [Member] | ||||
Gains (losses) | ||||
Gains (losses) | [1] | 6 | 3 | |
Designated as Hedging Instrument [Member] | Net Investment Income [Member] | Fair value hedges | Interest rate contracts [Member] | ||||
Gains (losses) | ||||
Gains (losses) | [1] | (30) | ||
Designated as Hedging Instrument [Member] | Interest and Debt Expense [Member] | Cash flow hedges | Interest rate contracts [Member] | ||||
Gains (losses) | ||||
Gains (losses) | [2] | 1 | ||
Designated as Hedging Instrument [Member] | Interest and Debt Expense [Member] | Fair value hedges | Interest rate contracts [Member] | ||||
Gains (losses) | ||||
Gains (losses) | [2] | 32 | 35 | 36 |
Designated as Hedging Instrument [Member] | Realized Gain (Loss) [Member] | Fair value hedges | Interest rate contracts [Member] | ||||
Gains (losses) | ||||
Gains (losses) | [3] | (198) | ||
Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments | Realized Gain (Loss) [Member] | Interest rate contracts [Member] | ||||
Gains (losses) | ||||
Gains (losses) | [3] | 304 | 1,303 | (989) |
Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments | Realized Gain (Loss) [Member] | Foreign currency contracts [Member] | ||||
Gains (losses) | ||||
Gains (losses) | [3] | (11) | (8) | (4) |
Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments | Realized Gain (Loss) [Member] | Equity market contracts [Member] | ||||
Gains (losses) | ||||
Gains (losses) | [3] | (118) | (215) | (1,306) |
Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments | Realized Gain (Loss) [Member] | Credit contracts [Member] | ||||
Gains (losses) | ||||
Gains (losses) | [3] | (6) | (1) | 9 |
Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments | Realized Gain (Loss) [Member] | Embedded derivatives - GLB reserves [Member] | ||||
Gains (losses) | ||||
Gains (losses) | [3] | (779) | (1,391) | 2,153 |
Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments | Realized Gain (Loss) [Member] | Embedded derivatives - Reinsurance related [Member] | ||||
Gains (losses) | ||||
Gains (losses) | [3] | 63 | (42) | 107 |
Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments | Realized Gain (Loss) [Member] | Embedded derivatives - Indexed annuity and IUL contracts [Member] | ||||
Gains (losses) | ||||
Gains (losses) | [3] | (57) | (210) | (356) |
Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments | Commissions and other expenses [Member] | Equity market contracts [Member] | ||||
Gains (losses) | ||||
Gains (losses) | [4] | $ 1 | $ 11 | $ 38 |
[1] | Reported in net investment income on our Consolidated Statements of Comprehensive Income (Loss). | |||
[2] | Reported in interest and debt expense on our Consolidated Statements of Comprehensive Income (Loss). | |||
[3] | Reported in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). | |||
[4] | Reported in commissions and other expenses on our Consolidated Statements of Comprehensive Income (Loss). |
Derivative Instruments (Gains86
Derivative Instruments (Gains (Losses) On Derivative Instruments Designated As Cash Flow Hedges) (Details) - Designated as Hedging Instrument [Member] - Cash flow hedges - Other Comprehensive Income (Loss) [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Gains (losses) on derivative instruments designated and qualifying as cash flow hedges | |||
Offset to net investment income | $ 14 | $ (22) | $ (19) |
Offset to interest and debt expense | $ 1 | $ 4 | $ 4 |
Derivative Instruments (Open Cr
Derivative Instruments (Open Credit Default Swap Liabilities) (Details) - Open Credit Default Swap Liabilities [Member] $ in Millions | 12 Months Ended | ||
Dec. 31, 2015USD ($)item | Dec. 31, 2014USD ($)item | ||
Summary Of Credit Derivatives | |||
Number of instruments | item | 5 | 6 | |
Fair value | [1] | $ (9) | $ (3) |
Maximum potential payout | $ 103 | $ 126 | |
BBB- average credit rating | 12/20/2016 maturity | |||
Summary Of Credit Derivatives | |||
Credit rating of underlying obligation | [2] | BBB- | BBB- |
Number of instruments | item | 2 | 3 | |
Fair value | [1] | $ (2) | $ (2) |
Maximum potential payout | $ 45 | $ 68 | |
BBB- average credit rating | 3/20/2017 maturity | |||
Summary Of Credit Derivatives | |||
Credit rating of underlying obligation | [2] | BBB- | BBB- |
Number of instruments | item | 3 | 3 | |
Fair value | [1] | $ (7) | $ (1) |
Maximum potential payout | $ 58 | $ 58 | |
[1] | Broker quotes are used to determine the market value of our credit default swaps. | ||
[2] | Represents average credit ratings based on the midpoint of the applicable ratings among Moody's, S&P and Fitch Ratings, as scaled to the corresponding S&P ratings. |
Derivative Instruments (Collate
Derivative Instruments (Collateral Support Agreements) (Details) - Open Credit Default Swap Liabilities [Member] - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Credit risk related contingent features collateral | ||
Maximum potential payout | $ 103 | $ 126 |
Less: Counterparty thresholds | ||
Maximum collateral potentially required to post | $ 103 | $ 126 |
Derivative Instruments (Schedul
Derivative Instruments (Schedule Of Collateral Amounts With Rights To Reclaim Or Obligation To Return Cash) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Collateral Posted by Counter-Party (Held by LNC) | $ 1,387 | $ 1,534 |
Collateral Posted by LNC (Held by Counter-Party) | (143) | (85) |
AA- [Member] | ||
Collateral Posted by Counter-Party (Held by LNC) | $ 92 | $ 64 |
Collateral Posted by LNC (Held by Counter-Party) | ||
A plus [Member] | ||
Collateral Posted by Counter-Party (Held by LNC) | $ 67 | $ 47 |
Collateral Posted by LNC (Held by Counter-Party) | ||
A [Member] | ||
Collateral Posted by Counter-Party (Held by LNC) | $ 866 | $ 1,163 |
Collateral Posted by LNC (Held by Counter-Party) | (143) | (85) |
A- [Member] | ||
Collateral Posted by Counter-Party (Held by LNC) | $ 11 | $ 233 |
Collateral Posted by LNC (Held by Counter-Party) | ||
BBB+ [Member] | ||
Collateral Posted by Counter-Party (Held by LNC) | $ 351 | $ 27 |
Collateral Posted by LNC (Held by Counter-Party) |
Derivative Instruments (Balance
Derivative Instruments (Balance Sheet Offsetting) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Financial Assets | ||
Derivative Instruments, Gross amount of recognized assets | $ 2,250 | $ 2,537 |
Derivative Instruments, Gross amounts offset | (713) | (677) |
Derivative Instruments, Net amount of assets | 1,537 | 1,860 |
Derivative Instruments, Cash collateral | (1,387) | (1,534) |
Derivative Instruments, Net amount | $ 150 | 326 |
Embedded Derivative Instruments, Gross amount of recognized assets | ||
Embedded Derivative Instruments, Gross amounts offset | ||
Embedded Derivative Instruments, Net amount of assets | ||
Embedded Derivative Instruments, Cash collateral | ||
Embedded Derivative Instruments, Net amount | ||
Total, Gross amount of recognized assets | $ 2,250 | 2,537 |
Total, Gross amounts offset | (713) | (677) |
Total, Net amount of assets | 1,537 | 1,860 |
Total, Cash collateral | (1,387) | (1,534) |
Total, Net amount | 150 | 326 |
Financial Liabilities | ||
Derivative Instruments, Gross amount of recognized liabilities | 139 | 130 |
Derivative Instruments, Gross amounts offset | (61) | (50) |
Derivative Instruments, Net amount of liabilities | 78 | 80 |
Derivative Instruments, Cash collateral | (143) | (85) |
Derivative Instruments, Net amount | (65) | (5) |
Embedded Derivative Instruments, Gross amount of recognized liabilities | $ 2,140 | 1,494 |
Embedded Derivative Instruments, Gross amounts offset | ||
Embedded Derivative Instruments, Net amount of liabilities | $ 2,140 | 1,494 |
Embedded Derivative Instruments, Cash collateral | ||
Embedded Derivative Instruments, Net amount | $ 2,140 | 1,494 |
Total, Gross amount of recognized liabilities | 2,279 | 1,624 |
Total, Gross amounts offset | (61) | (50) |
Total, Net amount of liabilities | 2,218 | 1,574 |
Total, Cash collateral | (143) | (85) |
Total, Net amount | $ 2,075 | $ 1,489 |
Federal Income Taxes (Narrative
Federal Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Effective tax rate | 19.00% | 24.00% | 24.00% |
Federal rate | 35.00% | ||
Dividends-received deduction | $ 192 | $ 163 | $ 145 |
Net operating loss carryforwards | $ 34 | ||
Net Operating Loss Carryforward Beginning Expiration Date | 2,031 | ||
Unrecognized tax benefits, that, if recognized, would impact income tax expense and effective tax rate | $ 13 | 15 | |
Recognized interest and penalty expense related to uncertain tax positions | 0 | (10) | $ 2 |
Accrued interest and penalty expense related to unrecognized tax benefits | 3 | $ 3 | |
Alternative Minimum [Member] | |||
Tax Credit Carryforward, Amount | $ 33 |
Federal Income Taxes (Federal I
Federal Income Taxes (Federal Income Tax Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income tax expense (benefit), continuing operations [Abstract] | |||
Current | $ 212 | $ 220 | $ 169 |
Deferred | 64 | 263 | 218 |
Federal income tax expense (benefit) | 276 | 483 | 387 |
Parent Company [Member] | |||
Income tax expense (benefit), continuing operations [Abstract] | |||
Federal income tax expense (benefit) | $ (66) | $ (77) | $ (73) |
Federal Income Taxes (Reconcili
Federal Income Taxes (Reconciliation Of The Effective Tax Rate Differences) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reconciliation of effective tax rate differences [Abstract] | |||
Tax rate times pre-tax income | $ 501 | $ 700 | $ 571 |
Effect of: | |||
Tax-preferred investment income | (197) | (185) | (160) |
Tax credits | (26) | (27) | (35) |
Change in uncertain tax positions | (2) | (16) | 7 |
Other items | 11 | 4 | |
Federal income tax expense (benefit) | $ 276 | $ 483 | $ 387 |
Effective tax rate | 19.00% | 24.00% | 24.00% |
Parent Company [Member] | |||
Effect of: | |||
Federal income tax expense (benefit) | $ (66) | $ (77) | $ (73) |
Federal Income Taxes (Federal94
Federal Income Taxes (Federal Income Tax Asset Liability) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Federal income tax asset (liability) [Abstract] | ||
Current | $ (136) | $ (134) |
Deferred | (1,867) | (3,024) |
Total federal income tax asset (liability) | $ (2,003) | $ (3,158) |
Federal Income Taxes (Significa
Federal Income Taxes (Significant Components Of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred Tax Assets | ||
Future contract benefits and other contract holder funds | $ 1,494 | $ 1,167 |
Deferred gain on business sold through reinsurance | 35 | 15 |
Reinsurance related embedded derivative asset | 31 | 52 |
Investment activity | 138 | |
Compensation and benefit plans | 265 | 321 |
Net operating loss carryforwards | 12 | 17 |
Tax credits | 33 | |
Other | 205 | 143 |
Total deferred tax assets | 2,075 | 1,853 |
Deferred Tax Liabilities | ||
DAC | 2,064 | 1,605 |
VOBA | 313 | 219 |
Net unrealized gain on AFS securities | 1,116 | 2,684 |
Net unrealized gain on trading securities | 70 | 105 |
Intangibles | 117 | 151 |
Investment activity | 105 | |
Other | 157 | 113 |
Total deferred tax liabilities | 3,942 | 4,877 |
Net deferred tax asset (liability) | $ (1,867) | $ (3,024) |
Federal Income Taxes (Reconci96
Federal Income Taxes (Reconciliation Of Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Reconciliation of unrecognized tax benefits [Roll Forward] | ||
Balance as of beginning-of-year | $ 15 | $ 82 |
Increases for prior year tax positions | 34 | |
Decreases for prior year tax positions | (2) | (24) |
Decreases for settlements with taxing authorities | (77) | |
Balance as of end-of-year | $ 13 | $ 15 |
DAC, VOBA, DSI, and DFEL (DAC)
DAC, VOBA, DSI, and DFEL (DAC) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Changes in DAC [Roll Forward] | |||
Balance as of beginning-of-year | $ 7,558 | $ 7,695 | $ 5,943 |
Business acquired (sold) through reinsurance | 38 | ||
Deferrals | 1,490 | 1,537 | 1,564 |
Amortization, net of interest: | |||
Amortization, excluding unlocking, net of interest | (879) | (988) | (816) |
Unlocking | (238) | 17 | 42 |
Adjustment related to realized (gains) losses | (15) | (31) | (8) |
Adjustment related to unrealized (gains) losses | 663 | (672) | 970 |
Balance as of end-of-year | $ 8,617 | $ 7,558 | $ 7,695 |
DAC, VOBA, DSI, and DFEL (VOBA)
DAC, VOBA, DSI, and DFEL (VOBA) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Changes in VOBA [Roll Forward] | ||||
Balance as of beginning-of-year | $ 649 | $ 1,191 | $ 724 | |
Business acquired (sold) through reinsurance | (22) | 2 | 4 | |
Deferrals | 8 | 9 | 13 | |
Amortization: | ||||
Amortization, excluding unlocking | (129) | (186) | (179) | |
Unlocking | (82) | (21) | (52) | |
Accretion of interest | [1] | 56 | 64 | 68 |
Adjustment related to realized (gains) losses | (1) | (1) | (1) | |
Adjustment related to unrealized (gains) losses | 414 | (409) | 614 | |
Balance as of end-of-year | $ 893 | $ 649 | $ 1,191 | |
Interest accrual rate, low end | 4.02% | |||
Interest accrual rate, high end | 7.05% | |||
[1] | The interest accrual rates utilized to calculate the accretion of interest ranged from 4.02% to 7.05%. |
DAC, VOBA, DSI, and DFEL (Estim
DAC, VOBA, DSI, and DFEL (Estimated Future Amortization of VOBA) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Estimated future amortization of VOBA, net of interest [Abstract] | |
2,016 | $ 61 |
2,017 | 65 |
2,018 | 68 |
2,019 | 73 |
2,020 | $ 82 |
DAC, VOBA, DSI, and DFEL (DSI)
DAC, VOBA, DSI, and DFEL (DSI) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Changes in DSI [Roll Forward] | |||
Balance as of beginning-of-year | $ 240 | $ 267 | $ 253 |
Deferrals | 29 | 13 | 10 |
Amortization, net of interest: | |||
Amortization, excluding unlocking, net of interest | (33) | (38) | (43) |
Unlocking | 2 | 2 | 8 |
Adjustment related to realized (gains) losses | (1) | (4) | (1) |
Adjustment related to unrealized (gains) losses | 19 | 40 | |
Balance as of end-of-year | $ 256 | $ 240 | $ 267 |
DAC, VOBA, DSI, and DFEL (DFEL)
DAC, VOBA, DSI, and DFEL (DFEL) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Changes in DFEL [Abstract] | |||
Balance as of beginning-of-year | $ 1,401 | $ 1,938 | $ 1,373 |
Deferrals | 539 | 402 | 320 |
Amortization, net of interest: | |||
Amortization, excluding unlocking, net of interest | (308) | (335) | (216) |
Unlocking | (68) | (50) | (14) |
Adjustment related to realized (gains) losses | (4) | (6) | (2) |
Adjustment related to unrealized (gains) losses | 392 | (548) | 477 |
Balance as of end-of-year | $ 1,952 | $ 1,401 | $ 1,938 |
Reinsurance (Narrative) (Detail
Reinsurance (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Ceded Credit Risk [Line Items] | |||
Maximum retention per single insured life on fixed and VUL insurance contracts | $ 20 | ||
Percent of mortality risk reinsured on newly issued non-term life insurance contracts | 25.00% | ||
Percent of total individual life in-force amount reinsured | 43 | ||
Reserves associated with modified coinsurance reinsurance arrangements | $ 617 | ||
Reinsurance receivable | 5,600 | $ 5,700 | |
Policy loans | 2,545 | 2,670 | |
Liabilities for funds withheld | 638 | 764 | |
Proceeds From Reinsurance Recapture | 422 | ||
Realized Gain Loss | (151) | $ (135) | |
Current Period Increase In Reserves | 270 | ||
Swiss Re [Member] | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance receivable | 2,400 | 2,500 | |
Trust funded by Swiss Re to support reinsurance receivable | 2,600 | ||
Liabilities for funds withheld | 634 | ||
Liabilities for reinsurance related embedded derivatives | $ 79 | ||
Amortization period (in years) of deferred gain on business sold to Swiss Re | 15 years | ||
Amount of amortization, after-tax, of deferred gain on business sold to Swiss Re | $ 48 | $ 48 | $ 48 |
Reinsurance Recaptured [Member] | |||
Ceded Credit Risk [Line Items] | |||
Proceeds From Reinsurance Recapture | 500 | ||
Reimbursement for prepaid reinsurance premiums | 78 | ||
Realized Gain Loss | 57 | ||
Current Period Increase In Reserves | 226 | ||
Reduction of DAC | $ (123) |
Reinsurance (Reinsurance amount
Reinsurance (Reinsurance amounts recorded on the Consolidated Statement of Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reinsurance Disclosures [Abstract] | |||
Direct insurance premiums and fee income | $ 9,529 | $ 9,064 | $ 8,023 |
Reinsurance assumed | 73 | 7 | 8 |
Reinsurance ceded | (1,311) | (1,410) | (1,275) |
Total insurance premiums and fee income | 8,291 | 7,661 | 6,756 |
Direct insurance benefits | 6,420 | 6,127 | 5,487 |
Reinsurance recoveries netted against benefits | (1,376) | (1,448) | (1,625) |
Benefits | $ 5,044 | $ 4,679 | $ 3,862 |
Goodwill and Specifically Id104
Goodwill and Specifically Identifiable Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Goodwill [Roll Forward] | |||
Goodwill Gross | $ 3,522 | $ 3,863 | |
Accumulated impairment as of beginning-of-year | $ (1,249) | (1,590) | |
Impairment | |||
Net goodwill as of end-of-year | $ 2,273 | $ 2,273 | |
Annuities Segment [Member] | |||
Goodwill [Roll Forward] | |||
Goodwill Gross | 1,040 | 1,040 | |
Accumulated impairment as of beginning-of-year | $ (600) | (600) | |
Impairment | |||
Net goodwill as of end-of-year | $ 440 | $ 440 | |
Retirement Plan Services Segment [Member] | |||
Goodwill [Roll Forward] | |||
Goodwill Gross | $ 20 | 20 | |
Impairment | |||
Net goodwill as of end-of-year | $ 20 | $ 20 | |
Life Segment [Member] | |||
Goodwill [Roll Forward] | |||
Goodwill Gross | 2,188 | 2,188 | |
Accumulated impairment as of beginning-of-year | $ (649) | (649) | |
Impairment | |||
Net goodwill as of end-of-year | $ 1,539 | $ 1,539 | |
Group Protection Segment [Member] | |||
Goodwill [Roll Forward] | |||
Goodwill Gross | $ 274 | 274 | |
Impairment | |||
Net goodwill as of end-of-year | $ 274 | $ 274 | |
Other Operations [Member] | |||
Goodwill [Roll Forward] | |||
Goodwill Gross | 341 | ||
Accumulated impairment as of beginning-of-year | $ (341) | ||
Impairment |
Goodwill and Specifically Id105
Goodwill and Specifically Identifiable Intangible Assets (Finite And Indefinite Lived Intangible Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | |
Finite And Indefinife Lived Intangible Assets Net [Abstract] | |||
Gross carrying amount | $ 105 | $ 105 | |
Accumulated amortization | 39 | 35 | |
Retirement Plan Services Segment [Member] | Mutual Fund Contract Rights [Member] | |||
Finite And Indefinife Lived Intangible Assets Net [Abstract] | |||
Gross carrying amount | [1] | 5 | 5 |
Life Segment [Member] | Sales Force [Member] | |||
Finite And Indefinife Lived Intangible Assets Net [Abstract] | |||
Gross carrying amount | 100 | 100 | |
Accumulated amortization | $ 39 | $ 35 | |
[1] | No amortization recorded as the intangible asset has indefinite life. |
Goodwill and Specifically Id106
Goodwill and Specifically Identifiable Intangible Assets (Future estimated amortization of specifically identifiable intangible assets) (Details) $ in Millions | Dec. 31, 2015USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2,016 | $ 4 |
2,017 | 4 |
2,018 | 4 |
2,019 | 4 |
2,020 | 4 |
Thereafter | $ 41 |
Guaranteed Benefit Features (Na
Guaranteed Benefit Features (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Guaranteed Benefit Features [Abstract] | |
Percent of permanent life insurance in force | 35.00% |
Percent of permanent life insurance sales | 33.00% |
Guaranteed Benefit Features (In
Guaranteed Benefit Features (Information On Guaranteed Death Benefit Features) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | ||
Return of Net Deposits [Member] | |||
Net Amount at Risk by Product and Guarantee [Line Items] | |||
Total Account Value | [1] | $ 85,345 | $ 85,917 |
Net Amount At Risk | [1],[2] | $ 1,201 | $ 183 |
Average attained age of contract holders | [1] | 63 years | 62 years |
Minimum Return [Member] | |||
Net Amount at Risk by Product and Guarantee [Line Items] | |||
Total Account Value | [1] | $ 111 | $ 135 |
Net Amount At Risk | [1],[2] | $ 24 | $ 25 |
Average attained age of contract holders | [1] | 75 years | 74 years |
Guaranteed minimum return | [1] | 5.00% | 5.00% |
Anniversary Contract Value [Member] | |||
Net Amount at Risk by Product and Guarantee [Line Items] | |||
Total Account Value | [1] | $ 24,659 | $ 26,021 |
Net Amount At Risk | [1],[2] | $ 1,345 | $ 597 |
Average attained age of contract holders | [1] | 69 years | 68 years |
[1] | Our variable contracts with guarantees may offer more than one type of guarantee in each contract; therefore, the amounts listed are not mutually exclusive. | ||
[2] | Represents the amount of death benefit in excess of the account balance that is subject to market fluctuations. |
Guaranteed Benefit Features (Su
Guaranteed Benefit Features (Summary Of Guaranteed Death Benefit Liabilities) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Guaranteed Benefit Features [Abstract] | |||
Balance as of beginning-of-year | $ 89 | $ 73 | $ 104 |
Changes in reserves | 52 | 34 | (10) |
Benefits paid | (26) | (18) | (21) |
Balance as of end-of-period | $ 115 | $ 89 | $ 73 |
Guaranteed Benefit Features (Ac
Guaranteed Benefit Features (Account Balances Of Variable Annuity Contracts With Guarantees Invested In Separate Accounts) (Details) - Variable Annuity [Member] - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Account Balances Of Variable Annuity Contracts With Guarantees Invested In Separate Accounts [Line Items] | ||
Total | $ 106,293 | $ 107,866 |
Percent of total variable annuity separate account values | 99.00% | 99.00% |
Domestic equity | ||
Account Balances Of Variable Annuity Contracts With Guarantees Invested In Separate Accounts [Line Items] | ||
Total | $ 48,362 | $ 49,569 |
International equity | ||
Account Balances Of Variable Annuity Contracts With Guarantees Invested In Separate Accounts [Line Items] | ||
Total | 18,382 | 18,791 |
Bonds | ||
Account Balances Of Variable Annuity Contracts With Guarantees Invested In Separate Accounts [Line Items] | ||
Total | 26,492 | 26,808 |
Money Market | ||
Account Balances Of Variable Annuity Contracts With Guarantees Invested In Separate Accounts [Line Items] | ||
Total | $ 13,057 | $ 12,698 |
Short-Term and Long-Term Deb111
Short-Term and Long-Term Debt (Narrative) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Capital Securities [Member] | |
Principal balance | $ 1,200 |
Risk based capital ratio threshold | 175.00% |
Five-year revolving credit facility [Member] | |
Maximum Issuance Of Line of Credit | $ 2,500 |
Current borrowing capacity | 2,500 |
Borrowing capacity available to reimburse the banks for drawn LOCs | 1,750 |
Minimum consolidated net worth | $ 9,400 |
Percentage of aggregate net proceeds of equity issuances | 50.00% |
Debt to capital ratio (low end of range) | 0.35% |
Debt to capital ratio (high end of range) | 1.00% |
Short-Term and Long-Term Deb112
Short-Term and Long-Term Debt (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | |
Total short-term debt | $ 250 | ||
Total long-term debt | $ 5,582 | 5,270 | |
Short-term Debt [Member] | |||
Current maturities of long-term debt | 250 | ||
Total short-term debt | 250 | ||
Long-term Debt [Member] | |||
Unamortized premiums (discounts) | (12) | (12) | |
Senior Long Term Notes | 4,110 | 3,810 | |
Capital Securities | 1,213 | 1,213 | |
Fair value hedge on interest rate swap | 271 | 259 | |
Total unamortized premiums discounts and fair value hedge - interest rate swap agreements | 259 | 247 | |
Total long-term debt | 5,582 | 5,270 | |
Parent Company [Member] | |||
Total short-term debt | 250 | ||
Total long-term debt | 5,331 | 5,021 | |
LIBOR plus 3 bps notes, due 2017 [Member] | Long-term Debt [Member] | |||
Senior Long Term Notes | [1] | 250 | 250 |
7.00% notes, due 2018 [Member] | Long-term Debt [Member] | |||
Senior Long Term Notes | 200 | 200 | |
LIBOR plus 110 bps loan, due 2018 [Member] | Long-term Debt [Member] | |||
Senior Long Term Notes | 250 | 250 | |
8.75% notes, due 2019 [Member] | Long-term Debt [Member] | |||
Senior Long Term Notes | [2] | 487 | 487 |
6.25% notes, due 2020 [Member] | Long-term Debt [Member] | |||
Senior Long Term Notes | [2] | 300 | 300 |
4.85% notes, due 2021 [Member] | Long-term Debt [Member] | |||
Senior Long Term Notes | [2] | 300 | 300 |
4.20% notes, due 2022 [Member] | Long-term Debt [Member] | |||
Senior Long Term Notes | [2] | 300 | 300 |
4.00% notes, due 2023 [Member] | Long-term Debt [Member] | |||
Senior Long Term Notes | [2] | 350 | 350 |
3.35% notes, due 2025 [Member] | Long-term Debt [Member] | |||
Senior Long Term Notes | [2] | 300 | |
6.15% notes, due 2036 [Member] | Long-term Debt [Member] | |||
Senior Long Term Notes | [2] | 498 | 498 |
6.30% notes, due 2037 [Member] | Long-term Debt [Member] | |||
Senior Long Term Notes | [1],[2] | 375 | 375 |
7.00% notes, due 2040 [Member] | Long-term Debt [Member] | |||
Senior Long Term Notes | [1],[2] | 500 | 500 |
7.00%, due 2066 [Member] | Long-term Debt [Member] | |||
Capital Securities | 722 | 722 | |
6.05%, due 2067 [Member] | Long-term Debt [Member] | |||
Capital Securities | $ 491 | $ 491 | |
[1] | Categorized as operating debt for leverage ratio calculations as the proceeds were used as a long-term structured solution to reduce the strain on increasing statutory reserves associated with secondary guarantee UL and term policies. | ||
[2] | We have the option to repurchase the outstanding notes by paying the greater of 100% of the principal amount of the notes to be redeemed or the make-whole amount (as defined in each note agreement), plus in each case any accrued and unpaid interest as of the date of redemption. |
Short-Term and Long-Term Deb113
Short-Term and Long-Term Debt (Future Principal Payments) (Details) $ in Millions | Dec. 31, 2015USD ($) |
Future principal payments due on long-term debt [Abstract] | |
2,016 | $ 0 |
2,017 | 250 |
2,018 | 450 |
2,019 | 487 |
2,020 | 300 |
Thereafter | 3,836 |
Total | $ 5,323 |
Short-Term and Long-Term Deb114
Short-Term and Long-Term Debt (Credit Facilities and Letters of Credit) (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2015USD ($) | ||
Maximum Available | $ 5,919 | |
LOCs issued | $ 3,761 | |
Five-year revolving credit facility [Member] | ||
Credit Facilities | Five-year revolving credit facility | |
Expiration Date | May 29, 2018 | |
Maximum Available | $ 2,500 | |
LOCs issued | $ 451 | |
LOC facility due December 2019 [Member] | ||
Expiration Date | Dec. 6, 2019 | [1] |
Maximum Available | $ 350 | [1] |
LOCs issued | $ 350 | [1] |
LOC facility due March 2023 [Member] | ||
Expiration Date | Mar. 31, 2023 | [2] |
Maximum Available | $ 125 | [2] |
LOCs issued | $ 125 | [2] |
LOC facility also due March 2023 [Member] | ||
Expiration Date | Mar. 31, 2023 | [1] |
Maximum Available | $ 920 | [1] |
LOCs issued | $ 920 | [1] |
LOC facility due August 2031 [Member] | ||
Expiration Date | Aug. 26, 2031 | [1] |
Maximum Available | $ 990 | [1] |
LOCs issued | $ 884 | [1] |
LOC facility due October 2031 [Member] | ||
Expiration Date | Oct. 1, 2031 | [1] |
Maximum Available | $ 1,034 | [1] |
LOCs issued | $ 1,031 | [1] |
[1] | Our wholly-owned subsidiaries entered into irrevocable LOC facility agreements with third-party lenders supporting inter-company reinsurance agreements. | |
[2] | We entered into an irrevocable LOC facility agreement with a third-party lender supporting certain fees owed to another third-party lender that automatically renews on an annual basis, unless not extended by the third-party upon 30 days' notice. |
Contingencies and Commitment115
Contingencies and Commitments (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Total rental expense on operating leases | $ 42 | $ 44 | $ 44 |
Proceeds from sales leaseback transaction | 47 | 83 | |
Total accumulated amortization related to sales leaseback transaction | 64 | 55 | |
Loss contingency accrual, insurance-related assessment, premium tax offset | (16) | $ (15) | |
Football Stadium Naming Rights Commitment [Member] | |||
Amount of commitment, total | $ 140 | ||
Time period of commitment | 20 years | ||
Approximate Amount Of Commitment Per Year | $ 7 | ||
Variable Annuity Product Concentration Risk [Member] | Variable Annuity Deposits Total [Member] | |||
Concentration risk, percentage | 18.00% | 20.00% | 17.00% |
Variable Annuity Product Concentration Risk [Member] | Variable Annuity Account Values Total [Member] | |||
Concentration risk, percentage | 42.00% | 44.00% | 47.00% |
Fund Choice Concentration Risk [Member] | Variable Annuity Deposits Total [Member] | |||
Concentration risk, percentage | 20.00% | 22.00% | 19.00% |
Fund Choice Concentration Risk [Member] | Variable Annuity Account Values Total [Member] | |||
Concentration risk, percentage | 48.00% | 50.00% | 54.00% |
Pending Litigation [Member] | |||
Loss Contingency, Range of Possible Loss, Maximum | $ 175 |
Contingencies and Commitment116
Contingencies and Commitments (Future Rental Commitments) (Details) $ in Millions | Dec. 31, 2015USD ($) |
Future minimum rental commitments [Abstract] | |
2,016 | $ 41 |
2,017 | 38 |
2,018 | 32 |
2,019 | 25 |
2,020 | 14 |
Thereafter | 27 |
Total | $ 177 |
Contingencies and Commitment117
Contingencies and Commitments (Future Capital Lease Commitments) (Details) $ in Millions | Dec. 31, 2015USD ($) |
Future minimum capital lease commitments [Abstract] | |
2,016 | $ 2 |
2,017 | 2 |
2,018 | 2 |
2,019 | 85 |
2,020 | 48 |
Total minimum lease payments | 139 |
Less: Amount representing interest | 9 |
Present value of minimum lease payments | $ 130 |
Shares and Stockholders' Equ118
Shares and Stockholders' Equity (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Deferred compensation plan mark to market adjustment | $ 4 | $ (4) |
Common stock warrant [Member] | ||
Outstanding warrant to purchase common stock (in shares) | 1,066,941 | |
Exercise price of warrant (in dollars per share) | $ 10.31 | |
Warrant expiration date LNC deferred compensation plans | Jul. 10, 2019 |
Shares and Stockholders' Equ119
Shares and Stockholders' Equity (Changes In Preferred And Common stock (Number Of Shares)) (Details) - shares | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Changes In Preferred And Common Stock Number Of Shares [Line Items] | ||||
Balance as of beginning-of-period | 256,551,440 | |||
Balance as of end-of-period | 243,835,893 | 256,551,440 | ||
Common stock as of end-of-period: | ||||
Assuming conversion of preferred stock | 243,835,893 | 256,551,440 | 262,896,701 | |
Diluted basis | 247,732,609 | 261,538,593 | 272,196,891 | |
Series A Preferred Stock [Member] | ||||
Changes In Preferred And Common Stock Number Of Shares [Line Items] | ||||
Balance as of beginning-of-period | 9,532 | |||
Conversion of convertible preferred stock | [1] | (5,818) | ||
Redemption of convertible preferred stock | (3,714) | |||
Balance as of end-of-period | ||||
Common Stock | ||||
Changes In Preferred And Common Stock Number Of Shares [Line Items] | ||||
Balance as of beginning-of-period | 256,551,440 | 262,896,701 | 271,402,586 | |
Conversion of convertible preferred stock | [1] | 93,088 | ||
Common Stock Issued For Exercise Of Warrants | 1,168,966 | 4,356,385 | 1,981,856 | |
Stock compensation/issued for benefit plans | 2,108,155 | 1,770,430 | 1,399,995 | |
Retirement/cancellation of shares | (15,992,668) | (12,472,076) | (11,980,824) | |
Balance as of end-of-period | 243,835,893 | 256,551,440 | 262,896,701 | |
[1] | Represents the conversion of Series A preferred stock into common stock. |
Shares and Stockholders' Equ120
Shares and Stockholders' Equity (Reconciliation Of The Denominator Calculations Of Basic And Diluted EPS) (Details) - shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reconciliation of the denominator (number of shares) in the calculations of basic and diluted earnings (loss) per common share | |||
Weighted-average shares, as used in basic calculation | 250,629,243 | 260,877,533 | 265,631,377 |
Shares to cover exercise of outstanding warrants | 1,389,768 | 4,342,860 | 9,884,307 |
Shares to cover conversion of preferred stock | 74,582 | ||
Shares to cover non-vested stock | 1,302,859 | 1,522,737 | 1,491,483 |
Average stock options outstanding during the period | 3,162,508 | 3,828,292 | 2,873,295 |
Assumed acquisition of shares with assumed proceeds from exercising outstanding warrants | (262,709) | (894,175) | (2,630,939) |
Assumed acquisition of shares with assumed proceeds and benefits from exercising stock options (at average market price for the period) | (2,258,658) | (2,679,571) | (2,036,098) |
Shares repurchaseable from measured but unrecognized stock option expense | (45,958) | (75,268) | (139,131) |
Average deferred compensation shares | 1,021,059 | 1,041,587 | |
Weighted-average shares, as used in diluted calculation | 254,938,112 | 267,963,995 | 275,148,876 |
Shares and Stockholders' Equ121
Shares and Stockholders' Equity (Components And Changes In Accumulated OCI) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Components And Changes In Accumulated Other Comprehensive Income [Line Items] | |||
Balance as of beginning-of-year | $ 3,096 | ||
Increases Attributable To | |||
Gross OTTI recognized in OCI during the year | (30) | $ (12) | $ (11) |
Less: | |||
Balance as of end-of-period | 845 | 3,096 | |
Parent Company [Member] | |||
Components And Changes In Accumulated Other Comprehensive Income [Line Items] | |||
Balance as of beginning-of-year | 3,096 | ||
Less: | |||
Balance as of end-of-period | 845 | 3,096 | |
Unrealized Gain (Loss) on AFS Securities [Member] | |||
Components And Changes In Accumulated Other Comprehensive Income [Line Items] | |||
Balance as of beginning-of-year | 3,213 | 1,538 | 4,020 |
Unrealized holding gains (losses) arising during the year | (4,541) | 3,855 | (5,766) |
Change in foreign currency exchange rate adjustment | (45) | (47) | 19 |
Change in DAC, VOBA, DSI, future contract benefits and other contract holder funds | 1,294 | (1,252) | 1,834 |
Income tax benefit (expense) | 1,147 | (895) | 1,369 |
Less: | |||
Reclassification adjustment for gains (losses) included in net income (loss) | 145 | 10 | (67) |
Associated amortization of DAC, VOBA, DSI, and DFEL | (27) | (32) | (29) |
Income tax benefit (expense) | (41) | 8 | 34 |
Less: | |||
Balance as of end-of-period | 991 | 3,213 | 1,538 |
Unrealized OTTI on AFS Securities [Member] | |||
Components And Changes In Accumulated Other Comprehensive Income [Line Items] | |||
Balance as of beginning-of-year | 26 | (7) | (61) |
Increases Attributable To | |||
Gross OTTI recognized in OCI during the year | (30) | (12) | (11) |
Change in DAC, VOBA, DSI and DFEL | 4 | 2 | 1 |
Income tax benefit (expense) | 9 | 4 | 4 |
Decreases attributable to | |||
Changes in fair value, sales, maturities or other settlements of AFS securities | 43 | 65 | 100 |
Change in DAC, VOBA, DSI, and DFEL | (17) | (5) | (8) |
Income tax benefit (expense) | (9) | (21) | (32) |
Less: | |||
Balance as of end-of-period | 26 | 26 | (7) |
Unrealized Gain (Loss) on Derivative Instruments [Member] | |||
Components And Changes In Accumulated Other Comprehensive Income [Line Items] | |||
Balance as of beginning-of-year | 139 | 256 | 163 |
Unrealized holding gains (losses) arising during the year | (241) | (250) | 143 |
Change in foreign currency exchange rate adjustment | 48 | 50 | (19) |
Decreases attributable to | |||
Change in DAC, VOBA, DSI and DFEL | 2 | 2 | 5 |
Income tax benefit (expense) | 66 | 69 | (45) |
Less: | |||
Reclassification adjustment for gains (losses) included in net income (loss) | (183) | (19) | (15) |
Associated amortization of DAC, VOBA, DSI and DFEL | 1 | 1 | 1 |
Income tax benefit (expense) | 64 | 6 | 5 |
Balance as of end-of-period | 132 | 139 | 256 |
Foreign Currency Translation Adjustment [Member] | |||
Components And Changes In Accumulated Other Comprehensive Income [Line Items] | |||
Balance as of beginning-of-year | (3) | (5) | (4) |
Change in foreign currency exchange rate adjustment | (2) | 2 | (1) |
Less: | |||
Balance as of end-of-period | (5) | (3) | (5) |
Funded Status of Employee Benefit Plans [Member] | |||
Components And Changes In Accumulated Other Comprehensive Income [Line Items] | |||
Balance as of beginning-of-year | (279) | (219) | (310) |
Less: | |||
Adjustment arising during the period | (21) | (96) | 140 |
Income tax benefit (expense) | 1 | 36 | (49) |
Balance as of end-of-period | $ (299) | $ (279) | $ (219) |
Shares And Stockholders' Equ122
Shares And Stockholders' Equity (Schedule of Reclassifications Out Of AOCI) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Total realized gain (loss) | $ (151) | $ (135) | |||||||||
Net investment income | 4,827 | $ 4,859 | 4,754 | ||||||||
Interest and debt expense | 272 | 267 | 265 | ||||||||
Commissions and other expenses | 4,318 | 4,079 | 3,701 | ||||||||
Income (loss) from continuing operations before taxes | 1,430 | 1,997 | 1,631 | ||||||||
Federal income tax expense (benefit) | 276 | 483 | 387 | ||||||||
Net income (loss) | $ 283 | $ 227 | $ 344 | $ 300 | $ 349 | $ 439 | $ 398 | $ 329 | 1,154 | 1,515 | 1,244 |
Unrealized Gain (Loss) on AFS Securities [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Income (loss) from continuing operations before taxes | 118 | (22) | (96) | ||||||||
Federal income tax expense (benefit) | (41) | 8 | 34 | ||||||||
Net income (loss) | 77 | (14) | (62) | ||||||||
Unrealized OTTI on AFS Securities [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Income (loss) from continuing operations before taxes | 2 | 60 | 92 | ||||||||
Federal income tax expense (benefit) | (21) | (32) | |||||||||
Net income (loss) | 2 | 39 | 60 | ||||||||
Unrealized Gain (Loss) on Derivative Instruments [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Income (loss) from continuing operations before taxes | (182) | (18) | (14) | ||||||||
Federal income tax expense (benefit) | 64 | 6 | 5 | ||||||||
Net income (loss) | (118) | (12) | (9) | ||||||||
Parent Company [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Net investment income | 1 | ||||||||||
Income (loss) from continuing operations before taxes | 996 | 593 | 516 | ||||||||
Federal income tax expense (benefit) | (66) | (77) | (73) | ||||||||
Net income (loss) | 1,154 | 1,515 | 1,244 | ||||||||
Gross Reclassification [Member] | Unrealized Gain (Loss) on AFS Securities [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Total realized gain (loss) | 145 | 10 | (67) | ||||||||
Gross Reclassification [Member] | Unrealized OTTI on AFS Securities [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Total realized gain (loss) | 2 | 65 | 100 | ||||||||
Gross Reclassification [Member] | Unrealized Gain (Loss) on Derivative Instruments [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Nonoperating income expense | (183) | (19) | (15) | ||||||||
Gross Reclassification [Member] | Unrealized Gain (Loss) on Derivative Instruments [Member] | Interest rate contracts [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Net investment income | (190) | (22) | (21) | ||||||||
Interest and debt expense | 1 | 3 | 3 | ||||||||
Gross Reclassification [Member] | Unrealized Gain (Loss) on Derivative Instruments [Member] | Foreign currency contracts [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Net investment income | 6 | 3 | |||||||||
Change In DAC, VOBA, DSI, And DFEL [Member] | Unrealized Gain (Loss) on AFS Securities [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Total realized gain (loss) | (27) | (32) | (29) | ||||||||
Change In DAC, VOBA, DSI, And DFEL [Member] | Unrealized OTTI on AFS Securities [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Total realized gain (loss) | (5) | (8) | |||||||||
Change In DAC, VOBA, DSI, And DFEL [Member] | Unrealized Gain (Loss) on Derivative Instruments [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Commissions and other expenses | $ 1 | $ 1 | $ 1 |
Realized (Gain) Loss (Details)
Realized (Gain) Loss (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Details underlying realized gain (loss) | ||||
Total realized gain loss related to certain investments | [1] | $ (88) | $ (18) | $ (98) |
Realized gain (loss) on the mark-to-market on certain instruments | [2] | (45) | (54) | 48 |
Indexed annuity and universal life net derivative results: | ||||
Gross gain (loss) | [3] | (77) | (35) | (39) |
Associated amortization of DAC, VOBA, DSI, and DFEL | [3] | 14 | 6 | 9 |
Variable annuity net derivatives results: | ||||
Gross gain (loss) | [4] | 56 | 159 | (60) |
Associated amortization of DAC, VOBA, DSI, and DFEL | [4] | (8) | (12) | 5 |
Realized gain (loss) on sale of subsidiaries/businesses | [5] | (3) | $ (46) | |
Total realized gain (loss) | $ (151) | $ (135) | ||
[1] | See "Realized Gain (Loss) Related to Certain Investments" section in Note 5. | |||
[2] | Represents changes in the fair values of certain derivative investments (not including those associated with our variable and indexed annuity and IUL contracts net derivatives results), reinsurance related embedded derivatives and trading securities. | |||
[3] | Represents the net difference between the change in the fair value of the S&P 500 call options that we hold and the change in the fair value of the embedded derivative liabilities of our indexed annuity and IUL contracts along with changes in the fair value of embedded derivative liabilities related to index call options we may purchase in the future to hedge contract holder index allocations applicable to future reset periods for our indexed annuity products. | |||
[4] | Includes the net difference in the change in embedded derivative reserves of our GLB riders and the change in the fair value of the derivative instruments we own to hedge the change in embedded derivative reserves on our GLB riders and the benefit ratio unlocking on our GDB riders, including the cost of purchasing the hedging instruments. | |||
[5] | See "LFM" in Note 3 |
Commissions and Other Expens124
Commissions and Other Expenses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Details underlying commissions and other expenses [Abstract] | |||
Commissions | $ 2,071 | $ 2,092 | $ 1,962 |
General and administrative expenses | 1,701 | 1,640 | 1,630 |
Expenses associated with reserve financing and unrelated LOCs | 73 | 68 | 64 |
DAC and VOBA deferrals and interest, net of amortization | (226) | (432) | (640) |
Broker-dealer expenses | 432 | 408 | 387 |
Specifically identifiable intangible asset amortization | 4 | 4 | 4 |
Media expenses | 29 | 60 | 62 |
Taxes, licenses and fees | 234 | 239 | 232 |
Total | 4,318 | 4,079 | 3,701 |
Parent Company [Member] | |||
Details underlying commissions and other expenses [Abstract] | |||
General and administrative expenses | $ 38 | $ 39 | $ 46 |
Retirement and Deferred Comp125
Retirement and Deferred Compensation Plans (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement [Abstract] | |||
Net periodic benefit expense (recovery) | $ (6) | $ (4) | $ (1) |
Expected benefit payments in the next fiscal year | 132 | ||
Increase (decrease) in pension plan obligations | 55 | ||
Defined contribution plans expense | 82 | 78 | 72 |
Deferred compensation plans expense | 10 | 23 | $ 38 |
Required Contribution [Member] | |||
Statement [Abstract] | |||
Pension contributions | 11 | $ 6 | |
Elective Contribution [Member] | |||
Statement [Abstract] | |||
Pension contributions | $ 25 |
Retirement and Deferred Comp126
Retirement and Deferred Compensation Plans (Benefit Plans' Assets and Obligations) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Pension Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 1,434 | $ 1,522 |
Projected benefit obligation | 1,607 | 1,708 |
Funded status of plan | (173) | (186) |
Amounts Recognized on the Consolidated Balance Sheets | ||
Other assets | 28 | 34 |
Other liabilities | (201) | (220) |
Net amount recognized | $ (173) | $ (186) |
Weighted-Average Assumptions, Benefit obligations: | ||
Weighted-average discount rate | 4.29% | 3.88% |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | ||
Weighted-average discount rate | 3.88% | 4.64% |
Expected return on plan assets | 6.87% | 6.90% |
Other Postretirement Benefit Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 52 | $ 48 |
Projected benefit obligation | 97 | 103 |
Funded status of plan | (45) | (55) |
Amounts Recognized on the Consolidated Balance Sheets | ||
Other assets | 2 | 1 |
Other liabilities | (47) | (56) |
Net amount recognized | $ (45) | $ (55) |
Weighted-Average Assumptions, Benefit obligations: | ||
Weighted-average discount rate | 4.50% | 4.00% |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | ||
Weighted-average discount rate | 4.00% | 4.50% |
Expected return on plan assets | 6.50% | 6.50% |
Retirement and Deferred Comp127
Retirement and Deferred Compensation Plans (Fair Value of Benefit Plan Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value of Benefit Plans' Assets [Abstract] | ||
Common and preferred stock | $ 542 | $ 554 |
Cash and invested cash | 151 | 152 |
Other investments | 54 | 50 |
Total | 1,486 | 1,570 |
Fixed Maturity AFS Securities [Member] | ||
Fair Value of Benefit Plans' Assets [Abstract] | ||
Corporate bonds | 355 | 454 |
U.S. government bonds | 207 | 161 |
Foreign government bonds | 145 | 166 |
State and municipal bonds | $ 32 | $ 33 |
Retirement and Deferred Comp128
Retirement and Deferred Compensation Plans (Deferred Compensation Plans Liabilities and Investment) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Contribution Pension and Other Postretirement Plans Disclosure [Abstract] | |||
Total liabilities | [1] | $ 483 | $ 495 |
Investments dedicated to fund liabilities | [2] | $ 151 | $ 160 |
[1] | Reported in other liabilities on our Consolidated Balance Sheets. | ||
[2] | Reported in other assets on our Consolidated Balance Sheets. |
Stock-Based Incentive Compen129
Stock-Based Incentive Compensation Plans (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Restricted Stock Units [Member] | |||
Narrative [Abstract] | |||
Percentage of total awards granted during the year for participating executive officers | 41.00% | 37.00% | 29.00% |
Stock awards granted (in shares) | 481,900 | 462,231 | 583,404 |
Stock options with service conditions [Member] | |||
Narrative [Abstract] | |||
Percentage of total awards granted during the year for participating executive officers | 24.00% | 25.00% | 35.00% |
Maximum Contractual Term (In Years) | 10 years | 10 years | 10 years |
Vesting period (in years) | 3 years | 3 years | 3 years |
Option awards granted (in shares) | 502,664 | 490,852 | 1,011,365 |
Total fair value of options vested | $ 7 | $ 7 | $ 6 |
Total intrinsic value of options exercised | $ 25 | $ 18 | $ 6 |
Performance Shares [Member] | |||
Narrative [Abstract] | |||
Percentage of total awards granted during the year for participating executive officers | 35.00% | 38.00% | 36.00% |
Percentage of target award opportunities, minimum | 0.00% | 0.00% | 0.00% |
Percentage of target award opportunities, maximum | 200.00% | 200.00% | 200.00% |
Stock awards granted (in shares) | 161,255 | 182,149 | 260,114 |
Stock options with performance conditions [Member] | |||
Narrative [Abstract] | |||
Option awards granted (in shares) | 90,239 | ||
Total fair value of options vested | $ 1 | $ 1 | $ 1 |
Total intrinsic value of options exercised | $ 2 | 2 | 1 |
Non-employee Stock Appreciation Rights [Member] | |||
Narrative [Abstract] | |||
Vesting period (in years) | 4 years | ||
Percentage of SARs vesting each year over four-year period | 25.00% | ||
Option awards granted (in shares) | 48,451 | ||
SARs liability | $ 3 | 5 | |
Payment for SARs exercised | $ 2 | $ 2 | $ 1 |
Stock-Based Incentive Compen130
Stock-Based Incentive Compensation Plans (Compensation expense for all stock-based incentive compensation plans) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Employee service share-based compensation, aggregate disclosures [Abstract] | |||
Compensation expense | $ 41 | $ 38 | $ 40 |
Recognized tax benefit | 14 | 13 | 14 |
Stock options [Member] | |||
Employee service share-based compensation, aggregate disclosures [Abstract] | |||
Compensation expense | 7 | 9 | 9 |
Performance Shares [Member] | |||
Employee service share-based compensation, aggregate disclosures [Abstract] | |||
Compensation expense | 12 | 12 | 10 |
Non-employee Stock Appreciation Rights [Member] | |||
Employee service share-based compensation, aggregate disclosures [Abstract] | |||
Compensation expense | 2 | 5 | |
Restricted Stock Units And Non-Vested Stock [Member] | |||
Employee service share-based compensation, aggregate disclosures [Abstract] | |||
Compensation expense | $ 22 | $ 15 | $ 16 |
Stock-Based Incentive Compen131
Stock-Based Incentive Compensation Plans (Total unrecognized compensation expense for all stock-based incentive compensation plans) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Employee service share-based compensation, aggregate disclosures [Abstract] | |||
Unrecognized stock-based incentive compensation expense | $ 44 | $ 41 | $ 39 |
Stock options [Member] | |||
Employee service share-based compensation, aggregate disclosures [Abstract] | |||
Unrecognized stock-based incentive compensation expense | $ 8 | $ 8 | $ 9 |
Weighted average period (in years) | 1 year 4 months 24 days | 1 year 6 months | 1 year 10 months 24 days |
Performance Shares [Member] | |||
Employee service share-based compensation, aggregate disclosures [Abstract] | |||
Unrecognized stock-based incentive compensation expense | $ 11 | $ 9 | $ 9 |
Weighted average period (in years) | 1 year | 1 year 6 months | 1 year 6 months |
Non-employee Stock Appreciation Rights [Member] | |||
Employee service share-based compensation, aggregate disclosures [Abstract] | |||
Unrecognized stock-based incentive compensation expense | $ 1 | $ 3 | $ 3 |
Weighted average period (in years) | 3 years | 3 years 2 months 12 days | 3 years 4 months 24 days |
Restricted Stock Units And Non-Vested Stock [Member] | |||
Employee service share-based compensation, aggregate disclosures [Abstract] | |||
Unrecognized stock-based incentive compensation expense | $ 24 | $ 21 | $ 18 |
Weighted average period (in years) | 1 year | 1 year | 1 year 2 months 12 days |
Stock-Based Incentive Compen132
Stock-Based Incentive Compensation Plans (Option price assumptions used for stock option incentive plans) (Details) - Stock options [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Assumptions used for stock-based incentive compensation plans [Abstract] | |||
Weighted-average fair value per option granted (in dollars per share) | $ 13 | $ 12.95 | $ 7.39 |
Dividend yield | 1.90% | 2.20% | 2.40% |
Expected volatility | 28.00% | 33.20% | 34.10% |
Risk-free interest rate, minimum | 1.40% | 0.90% | 0.60% |
Risk-free interest rate, maximum | 1.70% | 1.80% | 0.90% |
Expected life (in years) | 5 years 6 months | 5 years 4 months 24 days | 5 years 7 months 6 days |
Stock Based Incentive Compensat
Stock Based Incentive Compensation Plans (Summary of activity for stock options with performance conditions) (Details) - Stock options with performance conditions [Member] $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2015USD ($)$ / sharesshares | ||
Summary of activity for stock options [Roll Forward] | ||
Outstanding as of beginning of year (in shares) | shares | 1,071,747 | |
Granted - original (in shares) | shares | 90,239 | |
Exercised (includes shares tendered) (in shares) | shares | (131,121) | |
Forfeited or expired (in shares) | shares | (22,785) | |
Outstanding as of end of year (in shares) | shares | 1,008,080 | |
Vested or expected to vest as of end of year (in shares) | shares | 952,889 | [1] |
Exercisable as of end of year (in shares) | shares | 897,697 | |
Summary of activity for stock options, additional disclosures [Abstract] | ||
Weighted average exercise price as of beginning of year (in dollars per share) | $ / shares | $ 47.93 | |
Weighted average exercise price granted - original (in dollars per share) | $ / shares | 57.65 | |
Weighted average exercise price exercised (includes shares tendered) (in dollars per share) | $ / shares | 39.60 | |
Weighted average exercise price forfeited or expired (in dollars per share) | $ / shares | 40.46 | |
Weighted average exercise price outstanding as of end of year (in dollars per share) | $ / shares | 50.05 | |
Weighted average exercise price vested or expected to vest as of end of year (in dollars per share) | $ / shares | 49.96 | [1] |
Weighted average exercise price exercisable as of end of year (in dollars per share) | $ / shares | $ 49.86 | |
Weighted average remaining contractual term outstanding as of end of year (in years) | 2 years 3 months 11 days | |
Weighted average remaining contractual term vested or expected to vest as of end of year (in years) | 2 years 2 months 16 days | [1] |
Weighted average remaining contractual term exercisable as of end of year (in years) | 2 years 1 month 17 days | |
Aggregate intrinsic value outstanding as of end of year | $ | $ 3 | |
Aggregate intrinsic value vested or expected to vest as of end of year | $ | 3 | [1] |
Aggregate intrinsic value exercisable as of end of year | $ | $ 2 | |
[1] | Includes estimated forfeitures. |
Stock Based Incentive Compen134
Stock Based Incentive Compensation Plans (Summary of activity for stock options with service conditions) (Details) - Stock options with service conditions [Member] - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Summary of activity for stock options [Roll Forward] | ||||
Outstanding as of beginning of year (in shares) | 3,923,693 | |||
Granted - original (in shares) | 502,664 | 490,852 | 1,011,365 | |
Exercised (includes shares tendered) (in shares) | (1,249,442) | |||
Forfeited or expired (in shares) | (152,567) | |||
Outstanding as of end of year (in shares) | 3,024,348 | 3,923,693 | ||
Vested or expected to vest as of end of year (in shares) | [1] | 2,880,077 | ||
Exercisable as of end of year (in shares) | 2,017,776 | |||
Summary of activity for stock options, additional disclosures [Abstract] | ||||
Weighted average exercise price as of beginning of year (in dollars per share) | $ 38.65 | |||
Weighted average exercise price granted - original (in dollars per share) | 58.25 | |||
Weighted average exercise price exercised (includes shares tendered) (in dollars per share) | 39.05 | |||
Weighted average exercise price forfeited or expired (in dollars per share) | 48.76 | |||
Weighted average exercise price outstanding as of end of year (in dollars per share) | 41.23 | $ 38.65 | ||
Weighted average exercise price vested or expected to vest as of end of year (in dollars per share) | [1] | 40.97 | ||
Weighted average exercise price exercisable as of end of year (in dollars per share) | $ 37.65 | |||
Weighted average remaining contractual term outstanding as of end of year (in years) | 6 years 1 month 21 days | |||
Weighted average remaining contractual term vested or expected to vest as of end of year (in years) | [1] | 5 years 11 months 27 days | ||
Weighted average remaining contractual term exercisable as of end of year (in years) | 5 years 15 days | |||
Aggregate intrinsic value outstanding as of end of year | $ 38 | |||
Aggregate intrinsic value vested or expected to vest as of end of year | [1] | 36 | ||
Aggregate intrinsic value exercisable as of end of year | $ 32 | |||
[1] | Includes estimated forfeitures. |
Stock-Based Incentive Compen135
Stock-Based Incentive Compensation Plans (Summary of activity for performance shares) (Details) - Performance Shares [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Summary of activity for performance shares [Roll Forward] | |||
Outstanding as of beginning of year (in shares) | 702,426 | ||
Granted (in shares) | 161,255 | 182,149 | 260,114 |
Vested (in shares) | (291,455) | ||
Forfeited (in shares) | (34,339) | ||
Outstanding as of end of year (in shares) | 537,887 | 702,426 | |
Performance shares, additional disclosures [Abstract] | |||
Weighted-average grant date fair value, outstanding as of beginning of year (in dollars per share) | $ 37.36 | ||
Weighted-average grant date fair value, granted (in dollars per share) | 68.35 | ||
Weighted-average grant date fair value, vested (in dollars per share) | 29.69 | ||
Weighted-average grant date fair value, forfeited (in dollars per share) | 49.05 | ||
Weighted-average grant date fair value, outstanding as of end of year (in dollars per share) | $ 49.52 | $ 37.36 |
Stock-Based Incentive Compen136
Stock-Based Incentive Compensation Plans (Option price assumptions used for stock appreciation rights plan) (Details) - Non-employee Stock Appreciation Rights [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Assumptions used for stock-based incentive compensation plans [Abstract] | |||
Weighted-average fair value per option granted (in dollars per share) | $ 14.22 | $ 13.64 | $ 7.47 |
Dividend yield | 1.60% | 1.50% | 2.20% |
Expected volatility | 29.80% | 32.70% | 30.50% |
Risk-free interest rate | 1.80% | 1.70% | 1.00% |
Expected life (in years) | 5 years | 5 years | 5 years |
Stock-Based Incentive Compen137
Stock-Based Incentive Compensation Plans (Summary of activity for stock appreciation rights plan) (Details) - Non-employee Stock Appreciation Rights [Member] $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2015USD ($)$ / sharesshares | ||
Summary of activity for stock options [Roll Forward] | ||
Outstanding as of beginning of year (in shares) | shares | 307,959 | |
Granted - original (in shares) | shares | 48,451 | |
Exercised (includes shares tendered) (in shares) | shares | (85,713) | |
Forfeited or expired (in shares) | shares | (5,826) | |
Outstanding as of end of year (in shares) | shares | 264,871 | |
Vested or expected to vest as of end of year (in shares) | shares | 248,111 | [1] |
Exercisable as of end of year (in shares) | shares | 155,909 | |
Summary of activity for stock options, additional disclosures [Abstract] | ||
Weighted average exercise price as of beginning of year (in dollars per share) | $ / shares | $ 34.28 | |
Weighted average exercise price granted - original (in dollars per share) | $ / shares | 57.64 | |
Weighted average exercise price exercised (includes shares tendered) (in dollars per share) | $ / shares | 30.18 | |
Weighted average exercise price forfeited or expired (in dollars per share) | $ / shares | 38.92 | |
Weighted average exercise price outstanding as of end of year (in dollars per share) | $ / shares | 39.61 | |
Weighted average exercise price vested or expected to vest as of end of year (in dollars per share) | $ / shares | 39.70 | [1] |
Weighted average exercise price exercisable as of end of year (in dollars per share) | $ / shares | $ 35.01 | |
Weighted average remaining contractual term outstanding as of end of year (in years) | 2 years 3 months 29 days | |
Weighted average remaining contractual term vested or expected to vest as of end of year (in years) | 2 years 3 months 26 days | [1] |
Weighted average remaining contractual term exercisable as of end of year (in years) | 1 year 9 months 15 days | |
Aggregate intrinsic value outstanding as of end of year | $ | $ 3 | |
Aggregate intrinsic value vested or expected to vest as of end of year | $ | 3 | [1] |
Aggregate intrinsic value exercisable as of end of year | $ | $ 2 | |
[1] | Includes estimated forfeitures. |
Stock-Based Incentive Compen138
Stock-Based Incentive Compensation Plans (Summary of activity for restricted stock units) (Details) - Restricted Stock Units [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Summary of activity for restricted stock units [Roll Forward] | |||
Outstanding as of beginning of year (in shares) | 1,527,675 | ||
Granted (in shares) | 481,900 | 462,231 | 583,404 |
Vested (in shares) | (613,391) | ||
Forfeited (in shares) | (96,185) | ||
Outstanding as of end of year (in shares) | 1,299,999 | 1,527,675 | |
Restricted stock units, additional disclosures [Abstract] | |||
Weighted-average grant date fair value, outstanding as of beginning of year (in dollars per share) | $ 34.30 | ||
Weighted-average grant date fair value, granted (in dollars per share) | 58.08 | ||
Weighted-average grant date fair value, vested (in dollars per share) | 26.33 | ||
Weighted-average grant date fair value, forfeited (in dollars per share) | 43.32 | ||
Weighted-average grant date fair value, outstanding as of end of year (in dollars per share) | $ 46.21 | $ 34.30 |
Statutory Information and Re139
Statutory Information and Restrictions (Narrative) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Statutory Information and Restrictions Disclosure [Abstract] | |
Current Period Increase In Reserves | $ 270 |
Increase In Reserves Each Year Over Remaining Years | $ 90 |
RBC Ratio Company Action Level Low End | 75.00% |
RBC Ratio Company Action Level High End | 100.00% |
Indiana Statutory Limitation As A Percentage of The Insurer Contract Holder Surplus | 10.00% |
New York Statutory Limitation As A Percentage of The Insurer Contract Holder Surplus | 10.00% |
Amount of dividends that could be paid in the next year without prior approval | $ 900 |
Statutory Information and Re140
Statutory Information and Restrictions (Statutory Capital and Surplus) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Statutory Information and Restrictions Disclosure [Abstract] | ||
U.S. capital and surplus | $ 7,815 | $ 8,200 |
Statutory Information and Re141
Statutory Information and Restrictions (Net Gain Loss From Operations, Net Income Loss, Dividends to LNC Holding Company) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statutory Information and Restrictions Disclosure [Abstract] | |||
U.S. net gain from operations, after-tax | $ 635 | $ 1,225 | $ 494 |
U.S. net income (loss) | 838 | 1,456 | 561 |
U.S. dividends to LNC holding company | $ 1,175 | $ 785 | $ 725 |
Statutory Information and Re142
Statutory Information and Restrictions (Effects on statutory surplus compared to NAIC statutory surplus from the use of prescribed and permitted practices) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Calculation of reserves using the Indiana universal life method [Member] | ||
Statutory accounting practices [Line Items] | ||
Effects on statutory surplus compared to NAIC statutory surplus from the use of prescribed and permitted practices | $ 109 | $ 140 |
Calculation of reserves using continuous CARVM [Member] | ||
Statutory accounting practices [Line Items] | ||
Effects on statutory surplus compared to NAIC statutory surplus from the use of prescribed and permitted practices | (1) | (1) |
Conservative valuation rate on certain variable annuities [Member] | ||
Statutory accounting practices [Line Items] | ||
Effects on statutory surplus compared to NAIC statutory surplus from the use of prescribed and permitted practices | (43) | (39) |
Lesser of LOC and XXX additional reserve as surplus [Member] | ||
Statutory accounting practices [Line Items] | ||
Effects on statutory surplus compared to NAIC statutory surplus from the use of prescribed and permitted practices | $ 2,835 | $ 2,751 |
Fair Value of Financial Inst143
Fair Value of Financial Instruments (Carrying and Estimated Fair Values of Financial Instruments) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | |
AFS securities: | |||
AFS Fixed Maturity Securities | $ 84,964 | $ 86,240 | |
Variable interest entities' fixed maturity securities | 598 | 598 | |
AFS Equity securities | 237 | 231 | |
Trading securities | 1,854 | 2,065 | |
Mortgage loans on real estate | 8,678 | 7,574 | |
Derivative investments | 1,537 | 1,860 | |
Other investments | 1,778 | 1,709 | |
Other contract holder funds: | |||
Benefit Plans' Assets | 1,486 | 1,570 | |
Parent Company [Member] | |||
AFS securities: | |||
Derivative investments | 253 | 298 | |
Other investments | 40 | 5 | |
Carrying Value [Member] | |||
AFS securities: | |||
Trading securities | 1,854 | 2,065 | |
Mortgage loans on real estate | 8,678 | 7,574 | |
Derivative investments | [1] | 1,537 | 1,860 |
Other investments | 1,778 | 1,709 | |
Cash and invested cash | 3,146 | 3,919 | |
Other assets - reinsurance recoverable | 268 | 154 | |
Separate account assets | 123,619 | 125,265 | |
Other contract holder funds: | |||
Remaining guaranteed interest and similar contracts | (687) | (699) | |
Account values of certain investment contracts | (30,392) | (29,156) | |
Short-term debt | [2] | (250) | |
Long-term debt | (5,582) | (5,270) | |
Reinsurance related embedded derivatives | (87) | (150) | |
VIEs' liabilities - derivative instruments | (4) | (13) | |
Benefit Plans' Assets | [3] | 1,486 | 1,570 |
Fair Value [Member] | |||
AFS securities: | |||
Trading securities | 1,854 | 2,065 | |
Mortgage loans on real estate | 8,936 | 8,038 | |
Derivative investments | [1] | 1,537 | 1,860 |
Other investments | 1,778 | 1,709 | |
Cash and invested cash | 3,146 | 3,919 | |
Other assets - reinsurance recoverable | 268 | 154 | |
Separate account assets | 123,619 | 125,265 | |
Other contract holder funds: | |||
Remaining guaranteed interest and similar contracts | (687) | (699) | |
Account values of certain investment contracts | (34,618) | (33,079) | |
Short-term debt | [2] | (253) | |
Long-term debt | (5,505) | (5,707) | |
Reinsurance related embedded derivatives | (87) | (150) | |
VIEs' liabilities - derivative instruments | (4) | (13) | |
Benefit Plans' Assets | [3] | 1,486 | 1,570 |
VIEs' fixed maturity securities [Member] | Carrying Value [Member] | |||
AFS securities: | |||
Variable interest entities' fixed maturity securities | 598 | 598 | |
VIEs' fixed maturity securities [Member] | Fair Value [Member] | |||
AFS securities: | |||
Variable interest entities' fixed maturity securities | 598 | 598 | |
Fixed Maturity AFS Securities [Member] | Carrying Value [Member] | |||
AFS securities: | |||
AFS Fixed Maturity Securities | 84,964 | 86,240 | |
Fixed Maturity AFS Securities [Member] | Fair Value [Member] | |||
AFS securities: | |||
AFS Fixed Maturity Securities | 84,964 | 86,240 | |
Available-for-sale equity securities [Member] | Carrying Value [Member] | |||
AFS securities: | |||
AFS Equity securities | 237 | 231 | |
Available-for-sale equity securities [Member] | Fair Value [Member] | |||
AFS securities: | |||
AFS Equity securities | 237 | 231 | |
Future contract benefits [Member] | Carrying Value [Member] | |||
Future contract benefits: | |||
Indexed annuity and IUL contracts embedded derivatives | (1,100) | (1,170) | |
Future contract benefits [Member] | Fair Value [Member] | |||
Future contract benefits: | |||
Indexed annuity and IUL contracts embedded derivatives | (1,100) | (1,170) | |
Other Liabilities [Member] | Carrying Value [Member] | |||
Other contract holder funds: | |||
Other liabilities - credit default swaps | (9) | (3) | |
Other liabilities - derivative liabilities | [1] | (69) | (77) |
Other liabilities - GLB reserves embedded derivatives | [4] | (953) | (174) |
Other Liabilities [Member] | Fair Value [Member] | |||
Other contract holder funds: | |||
Other liabilities - credit default swaps | (9) | (3) | |
Other liabilities - derivative liabilities | [1] | (69) | (77) |
Other liabilities - GLB reserves embedded derivatives | [4] | $ (953) | $ (174) |
[1] | We have master netting agreements with each of our derivative counterparties, which allow for the netting of our derivative asset and liability positions by counterparty. | ||
[2] | The difference between the carrying value and fair value of short-term debt as of December 31, 2014, related to current maturities of long-term debt. | ||
[3] | Included in the funded statuses of the benefit plans, which is reported in other liabilities on our Consolidated Balance Sheets. Refer to Note 17 for information regarding our benefit plans. | ||
[4] | Portions of our GLB reserves embedded derivatives are ceded to third-party reinsurance counterparties. Refer to Note 6 for additional detail. |
Fair Value of Financial Inst144
Fair Value of Financial Instruments (Fair Value of Assets and Liabilities on a Recurring Basis) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | $ 217,146 | $ 221,209 | |
Liabilities measured at fair value | (4,200) | (3,517) | |
Benefit Plans' Assets | 1,486 | 1,570 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 1,889 | 2,203 | |
Benefit Plans' Assets | 156 | 116 | |
Significant Observable Inputs (Level 2) [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 211,094 | 214,857 | |
Liabilities measured at fair value | (1,836) | (1,915) | |
Benefit Plans' Assets | 1,330 | 1,454 | |
Significant Unobservable Inputs (Level 3) [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 4,163 | 4,149 | |
Liabilities measured at fair value | (2,364) | (1,602) | |
Corporate bonds [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 72,931 | 73,416 | |
Corporate bonds [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 60 | 63 | |
Corporate bonds [Member] | Significant Observable Inputs (Level 2) [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 70,878 | 71,400 | |
Corporate bonds [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 1,993 | 1,953 | |
ABS [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 1,101 | 1,130 | |
ABS [Member] | Significant Observable Inputs (Level 2) [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 1,056 | 1,097 | |
ABS [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 45 | 33 | |
U.S. government bonds [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 429 | 435 | |
U.S. government bonds [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 412 | 399 | |
U.S. government bonds [Member] | Significant Observable Inputs (Level 2) [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 17 | 36 | |
Foreign government bonds [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 524 | 541 | |
Foreign government bonds [Member] | Significant Observable Inputs (Level 2) [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 413 | 432 | |
Foreign government bonds [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 111 | 109 | |
RMBS [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 3,728 | 4,226 | |
RMBS [Member] | Significant Observable Inputs (Level 2) [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 3,727 | 4,225 | |
RMBS [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 1 | 1 | |
CMBS [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 376 | 570 | |
CMBS [Member] | Significant Observable Inputs (Level 2) [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 366 | 555 | |
CMBS [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 10 | 15 | |
CLOs [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 589 | 375 | |
CLOs [Member] | Significant Observable Inputs (Level 2) [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 38 | 7 | |
CLOs [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 551 | 368 | |
State and municipal bonds [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 4,480 | 4,593 | |
State and municipal bonds [Member] | Significant Observable Inputs (Level 2) [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 4,480 | 4,593 | |
Hybrid and redeemable preferred securities [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 806 | 954 | |
Hybrid and redeemable preferred securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 48 | 45 | |
Hybrid and redeemable preferred securities [Member] | Significant Observable Inputs (Level 2) [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 664 | 854 | |
Hybrid and redeemable preferred securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 94 | 55 | |
VIEs' fixed maturity securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 598 | 598 | |
VIEs' fixed maturity securities [Member] | Significant Observable Inputs (Level 2) [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 598 | 598 | |
Available-for-sale equity securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 237 | 231 | |
Available-for-sale equity securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 8 | 7 | |
Available-for-sale equity securities [Member] | Significant Observable Inputs (Level 2) [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 65 | 67 | |
Available-for-sale equity securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 164 | 157 | |
Trading securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 1,854 | 2,065 | |
Trading securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 160 | ||
Trading securities [Member] | Significant Observable Inputs (Level 2) [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 1,621 | 1,992 | |
Trading securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 73 | 73 | |
Other Investments [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 148 | 150 | |
Other Investments [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 148 | 150 | |
Derivative investments | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | [1] | 2,312 | 2,587 |
Derivative investments | Significant Observable Inputs (Level 2) [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | [1] | 1,459 | 1,356 |
Derivative investments | Significant Unobservable Inputs (Level 3) [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | [1] | 853 | 1,231 |
Invested cash [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 3,146 | 3,919 | |
Invested cash [Member] | Significant Observable Inputs (Level 2) [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 3,146 | 3,919 | |
GLB embedded derivative reserves | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Liabilities measured at fair value | (174) | ||
GLB embedded derivative reserves | Other Liabilities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Liabilities measured at fair value | (953) | ||
GLB embedded derivative reserves | Significant Unobservable Inputs (Level 3) [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Liabilities measured at fair value | (174) | ||
GLB embedded derivative reserves | Significant Unobservable Inputs (Level 3) [Member] | Other Liabilities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Liabilities measured at fair value | (953) | ||
Other Assets Reinsurance Recoverable [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 268 | 154 | |
Other Assets Reinsurance Recoverable [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 268 | 154 | |
Separate Account Assets [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 123,619 | 125,265 | |
Separate Account Assets [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 1,053 | 1,539 | |
Separate Account Assets [Member] | Significant Observable Inputs (Level 2) [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 122,566 | 123,726 | |
Embedded derivatives - Indexed annuity and IUL contracts [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Liabilities measured at fair value | (1,100) | ||
Embedded derivatives - Indexed annuity and IUL contracts [Member] | Future contract benefits [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Liabilities measured at fair value | (1,170) | ||
Embedded derivatives - Indexed annuity and IUL contracts [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Liabilities measured at fair value | (1,100) | ||
Embedded derivatives - Indexed annuity and IUL contracts [Member] | Significant Unobservable Inputs (Level 3) [Member] | Future contract benefits [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Liabilities measured at fair value | (1,170) | ||
Long-term Debt [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Liabilities measured at fair value | (1,203) | (1,203) | |
Long-term Debt [Member] | Significant Observable Inputs (Level 2) [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Liabilities measured at fair value | (1,203) | (1,203) | |
Reinsurance related [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Liabilities measured at fair value | (87) | (150) | |
Reinsurance related [Member] | Significant Observable Inputs (Level 2) [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Liabilities measured at fair value | (87) | (150) | |
Variable Interest Entities Liabilities - Derivative Instruments [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Liabilities measured at fair value | (4) | (13) | |
Variable Interest Entities Liabilities - Derivative Instruments [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Liabilities measured at fair value | (4) | (13) | |
Credit default swaps | Other Liabilities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Liabilities measured at fair value | (9) | (3) | |
Credit default swaps | Significant Unobservable Inputs (Level 3) [Member] | Other Liabilities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Liabilities measured at fair value | (9) | (3) | |
Derivative Financial Instruments, Liabilities [Member] | Other Liabilities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Liabilities measured at fair value | [1] | (844) | (804) |
Derivative Financial Instruments, Liabilities [Member] | Significant Observable Inputs (Level 2) [Member] | Other Liabilities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Liabilities measured at fair value | [1] | (546) | (562) |
Derivative Financial Instruments, Liabilities [Member] | Significant Unobservable Inputs (Level 3) [Member] | Other Liabilities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Liabilities measured at fair value | [1] | $ (298) | $ (242) |
[1] | Derivative investment assets and liabilities presented within the fair value hierarchy are presented on a gross basis by derivative type and not on a master netting basis by counterparty. |
Fair Value of Financial Inst145
Fair Value of Financial Instruments (Fair Value Measured On A Recurring Basis Reconciliation) (Details) - USD ($) $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||||
Level 3 Unobservable Input Reconciliation | |||||||
Beginning Fair Value | $ 2,547 | $ 3,730 | $ 2,275 | ||||
Items Included in Net Income | (795) | (1,375) | 1,210 | ||||
Gains (Losses) in OCI and Other | [1] | (173) | 403 | 109 | |||
Purchases, Issuances, Sales, Maturities, Settlements, Calls, Net | 132 | 129 | 316 | ||||
Transfers In or Out of Level 3, Net | [2] | 88 | (340) | [3] | (180) | ||
Ending Fair Value | 1,799 | 2,547 | 3,730 | ||||
Corporate bonds [Member] | Fixed Maturity AFS Securities [Member] | |||||||
Level 3 Unobservable Input Reconciliation | |||||||
Beginning Fair Value | [4] | 1,953 | 1,701 | 1,491 | |||
Items Included in Net Income | [4] | 4 | 9 | (18) | |||
Gains (Losses) in OCI and Other | [1],[4] | (140) | 27 | (2) | |||
Purchases, Issuances, Sales, Maturities, Settlements, Calls, Net | [4] | 118 | 197 | 316 | |||
Transfers In or Out of Level 3, Net | [2],[4] | 58 | 19 | [3] | (86) | ||
Ending Fair Value | [4] | 1,993 | 1,953 | 1,701 | |||
ABS [Member] | Fixed Maturity AFS Securities [Member] | |||||||
Level 3 Unobservable Input Reconciliation | |||||||
Beginning Fair Value | [4] | 33 | 10 | 14 | |||
Gains (Losses) in OCI and Other | [1],[4] | 1 | 1 | ||||
Purchases, Issuances, Sales, Maturities, Settlements, Calls, Net | [4] | 12 | 29 | ||||
Transfers In or Out of Level 3, Net | [2],[4] | 22 | [3] | (34) | |||
Ending Fair Value | [4] | 45 | $ 33 | 10 | |||
U.S. government bonds [Member] | Fixed Maturity AFS Securities [Member] | |||||||
Level 3 Unobservable Input Reconciliation | |||||||
Beginning Fair Value | [4] | $ 1 | |||||
Items Included in Net Income | [4] | ||||||
Gains (Losses) in OCI and Other | [1],[4] | ||||||
Purchases, Issuances, Sales, Maturities, Settlements, Calls, Net | [4] | $ (1) | |||||
Transfers In or Out of Level 3, Net | [2],[4] | ||||||
Ending Fair Value | [4] | ||||||
Foreign government bonds [Member] | Fixed Maturity AFS Securities [Member] | |||||||
Level 3 Unobservable Input Reconciliation | |||||||
Beginning Fair Value | [4] | 109 | $ 79 | $ 46 | |||
Gains (Losses) in OCI and Other | [1],[4] | 2 | 5 | ||||
Purchases, Issuances, Sales, Maturities, Settlements, Calls, Net | [4] | 33 | |||||
Transfers In or Out of Level 3, Net | [2],[3],[4] | 25 | |||||
Ending Fair Value | [4] | 111 | 109 | 79 | |||
RMBS [Member] | Fixed Maturity AFS Securities [Member] | |||||||
Level 3 Unobservable Input Reconciliation | |||||||
Beginning Fair Value | [4] | 1 | 1 | 3 | |||
Items Included in Net Income | [4] | $ 4 | |||||
Gains (Losses) in OCI and Other | [1],[4] | ||||||
Purchases, Issuances, Sales, Maturities, Settlements, Calls, Net | [4] | $ (4) | (2) | ||||
Transfers In or Out of Level 3, Net | [2],[4] | ||||||
Ending Fair Value | [4] | $ 1 | 1 | 1 | |||
CMBS [Member] | Fixed Maturity AFS Securities [Member] | |||||||
Level 3 Unobservable Input Reconciliation | |||||||
Beginning Fair Value | [4] | 15 | 20 | 27 | |||
Items Included in Net Income | [4] | 2 | 1 | ||||
Gains (Losses) in OCI and Other | [1],[4] | 8 | 2 | 6 | |||
Purchases, Issuances, Sales, Maturities, Settlements, Calls, Net | [4] | (15) | (13) | (6) | |||
Transfers In or Out of Level 3, Net | [2],[4] | 6 | [3] | (8) | |||
Ending Fair Value | [4] | 10 | 15 | 20 | |||
CLOs [Member] | Fixed Maturity AFS Securities [Member] | |||||||
Level 3 Unobservable Input Reconciliation | |||||||
Beginning Fair Value | [4] | 368 | 179 | 154 | |||
Items Included in Net Income | [4] | (3) | (1) | ||||
Gains (Losses) in OCI and Other | [1],[4] | 1 | 7 | 4 | |||
Purchases, Issuances, Sales, Maturities, Settlements, Calls, Net | [4] | 194 | 136 | 50 | |||
Transfers In or Out of Level 3, Net | [2],[4] | (12) | 49 | [3] | (28) | ||
Ending Fair Value | [4] | 551 | 368 | 179 | |||
State and municipal bonds [Member] | Fixed Maturity AFS Securities [Member] | |||||||
Level 3 Unobservable Input Reconciliation | |||||||
Beginning Fair Value | [4] | 28 | 32 | ||||
Gains (Losses) in OCI and Other | [1],[4] | 1 | (4) | ||||
Transfers In or Out of Level 3, Net | [2],[3],[4] | (29) | |||||
Ending Fair Value | [4] | 28 | |||||
Hybrid and redeemable preferred securities [Member] | Fixed Maturity AFS Securities [Member] | |||||||
Level 3 Unobservable Input Reconciliation | |||||||
Beginning Fair Value | [4] | 55 | 66 | 118 | |||
Items Included in Net Income | [4] | (1) | |||||
Gains (Losses) in OCI and Other | [1],[4] | (3) | (1) | 13 | |||
Purchases, Issuances, Sales, Maturities, Settlements, Calls, Net | [4] | (5) | (35) | ||||
Transfers In or Out of Level 3, Net | [2],[4] | 43 | (5) | [3] | (30) | ||
Ending Fair Value | [4] | 94 | 55 | 66 | |||
Available-for-sale equity securities [Member] | |||||||
Level 3 Unobservable Input Reconciliation | |||||||
Beginning Fair Value | [4] | 157 | 161 | 87 | |||
Items Included in Net Income | [4] | 2 | 4 | (1) | |||
Gains (Losses) in OCI and Other | [1],[4] | 3 | (3) | 2 | |||
Purchases, Issuances, Sales, Maturities, Settlements, Calls, Net | [4] | 3 | (5) | 73 | |||
Transfers In or Out of Level 3, Net | [2],[4] | (1) | |||||
Ending Fair Value | [4] | 164 | 157 | 161 | |||
Trading securities [Member] | |||||||
Level 3 Unobservable Input Reconciliation | |||||||
Beginning Fair Value | [4] | 73 | 52 | 56 | |||
Items Included in Net Income | [4] | 3 | 4 | 3 | |||
Gains (Losses) in OCI and Other | [1],[4] | (3) | 8 | (7) | |||
Purchases, Issuances, Sales, Maturities, Settlements, Calls, Net | [4] | 10 | (6) | ||||
Transfers In or Out of Level 3, Net | [2],[4] | (1) | [3] | 6 | |||
Ending Fair Value | [4] | 73 | 73 | 52 | |||
Derivative investments | |||||||
Level 3 Unobservable Input Reconciliation | |||||||
Beginning Fair Value | [4] | 989 | 1,266 | 2,026 | |||
Items Included in Net Income | [4] | (90) | 72 | (681) | |||
Gains (Losses) in OCI and Other | [1],[4] | (41) | 356 | 96 | |||
Purchases, Issuances, Sales, Maturities, Settlements, Calls, Net | [4] | (303) | (279) | (175) | |||
Transfers In or Out of Level 3, Net | [2],[3],[4] | (426) | |||||
Ending Fair Value | [4] | 555 | 989 | 1,266 | |||
GLB embedded derivative reserves | Future contract benefits [Member] | |||||||
Level 3 Unobservable Input Reconciliation | |||||||
Beginning Fair Value | [5] | 1,244 | (909) | ||||
Items Included in Net Income | [5] | 2,153 | |||||
Transfers In or Out of Level 3, Net | [2],[3],[5] | (1,244) | |||||
Ending Fair Value | [5] | 1,244 | |||||
GLB embedded derivative reserves | Other Liabilities [Member] | |||||||
Level 3 Unobservable Input Reconciliation | |||||||
Beginning Fair Value | [5] | (174) | (27) | ||||
Items Included in Net Income | [5] | (779) | (1,391) | ||||
Transfers In or Out of Level 3, Net | [2],[3],[5] | 1,244 | |||||
Ending Fair Value | [5] | (953) | (174) | (27) | |||
Other Assets Reinsurance Recoverable [Member] | |||||||
Level 3 Unobservable Input Reconciliation | |||||||
Beginning Fair Value | [5] | 154 | 27 | ||||
Items Included in Net Income | [5] | 114 | 127 | ||||
Ending Fair Value | [5] | 268 | 154 | 27 | |||
Embedded derivatives - Indexed annuity and IUL contracts [Member] | Future contract benefits [Member] | |||||||
Level 3 Unobservable Input Reconciliation | |||||||
Beginning Fair Value | [5] | (1,170) | (1,048) | (732) | |||
Items Included in Net Income | [5] | (57) | (210) | (356) | |||
Purchases, Issuances, Sales, Maturities, Settlements, Calls, Net | [5] | 127 | 88 | 40 | |||
Ending Fair Value | [5] | (1,100) | (1,170) | (1,048) | |||
Variable Interest Entities Liabilities - Derivative Instruments [Member] | |||||||
Level 3 Unobservable Input Reconciliation | |||||||
Beginning Fair Value | [6] | (13) | (27) | (128) | |||
Items Included in Net Income | 9 | [6] | 14 | 101 | [6] | ||
Ending Fair Value | [6] | (4) | (13) | (27) | |||
Credit default swaps | Other Liabilities [Member] | |||||||
Level 3 Unobservable Input Reconciliation | |||||||
Beginning Fair Value | [7] | (3) | (2) | (11) | |||
Items Included in Net Income | [7] | (6) | (1) | 9 | |||
Ending Fair Value | [7] | $ (9) | $ (3) | $ (2) | |||
[1] | The changes in fair value of the interest rate swaps are offset by an adjustment to derivative investments (see Note 6). | ||||||
[2] | Transfers into or out of Level 3 for AFS and trading securities are displayed at amortized cost as of the beginning-of-year. For AFS and trading securities, the difference between beginning-of-year amortized cost and beginning-of-year fair value was included in OCI and earnings, respectively, in prior years. | ||||||
[3] | Transfers into or out of Level 3 for GLB reserves embedded derivatives between future contract benefits, other assets and other liabilities on our Consolidated Balance Sheets. | ||||||
[4] | Amortization and accretion of premiums and discounts are included in net investment income on our Consolidated Statements of Comprehensive Income (Loss). Gains (losses) from sales, maturities, settlements and calls and OTTI are included in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). | ||||||
[5] | Gains (losses) from sales, maturities, settlements and calls are included in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). | ||||||
[6] | Gains (losses) from sales, maturities, settlements and calls are included in net investment income on our Consolidated Statements of Comprehensive Income (Loss). | ||||||
[7] | The changes in fair value of the credit default swaps and contingency forwards are included in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). |
Fair Value of Financial Inst146
Fair Value of Financial Instruments (Schedule Of Investment Holdings Movements) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | |||
Issuances | $ 760 | $ 892 | $ 849 |
Sales | (244) | (172) | (117) |
Maturities | (364) | (467) | (369) |
Settlements | 21 | 43 | 25 |
Calls | (41) | (167) | (72) |
Total | 132 | 129 | 316 |
Corporate bonds [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | |||
Issuances | 359 | 600 | 533 |
Sales | (38) | (75) | (51) |
Maturities | (44) | (115) | (47) |
Settlements | (119) | (51) | (49) |
Calls | (40) | (162) | (70) |
Total | 118 | 197 | 316 |
U.S. government bonds [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | |||
Settlements | (1) | ||
Total | (1) | ||
Foreign government bonds [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | |||
Issuances | 50 | ||
Maturities | (17) | ||
Total | 33 | ||
ABS [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | |||
Issuances | 13 | 30 | |
Settlements | (1) | (1) | |
Total | 12 | 29 | |
RMBS [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | |||
Sales | (4) | ||
Settlements | (2) | ||
Total | (4) | (2) | |
CMBS [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | |||
Settlements | (14) | (13) | (4) |
Calls | (1) | (2) | |
Total | (15) | (13) | (6) |
CLOs [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | |||
Issuances | 217 | 187 | 74 |
Settlements | (23) | (46) | (24) |
Calls | (5) | ||
Total | 194 | 136 | 50 |
Hybrid and redeemable preferred securities [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | |||
Sales | (5) | (35) | |
Total | (5) | (35) | |
Available-for-sale equity securities [Member] | |||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | |||
Issuances | 43 | 78 | |
Sales | (40) | (5) | (5) |
Total | 3 | (5) | 73 |
Trading securities [Member] | |||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | |||
Issuances | 14 | ||
Sales | (3) | ||
Maturities | (1) | ||
Settlements | (4) | (2) | |
Total | 10 | (6) | |
Derivative investments | |||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | |||
Issuances | 179 | 160 | 152 |
Sales | (162) | (87) | (23) |
Maturities | (320) | (352) | (304) |
Total | (303) | (279) | (175) |
Embedded derivatives - Indexed annuity and IUL contracts [Member] | Future contract benefits [Member] | |||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | |||
Issuances | (51) | (69) | (68) |
Settlements | 178 | 157 | 108 |
Total | $ 127 | $ 88 | $ 40 |
Fair Value of Financial Inst147
Fair Value of Financial Instruments (Changes In Unrealized Gains (Losses) Within Level 3 Financial Instruments Carried At Fair Value And Still Held) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Changes in unrealized gains (losses) within Level 3 financial instruments carried at fair value and still held | ||||
Change in unrealized gains (losses) included in net income | $ (427) | $ (717) | $ 1,758 | |
Derivative investments | Realized Gain (Loss) [Member] | ||||
Changes in unrealized gains (losses) within Level 3 financial instruments carried at fair value and still held | ||||
Change in unrealized gains (losses) included in net income | [1] | (102) | (15) | (752) |
Embedded derivatives - Indexed annuity and IUL contracts [Member] | Realized Gain (Loss) [Member] | ||||
Changes in unrealized gains (losses) within Level 3 financial instruments carried at fair value and still held | ||||
Change in unrealized gains (losses) included in net income | (84) | (37) | (44) | |
GLB embedded derivative reserves | Realized Gain (Loss) [Member] | ||||
Changes in unrealized gains (losses) within Level 3 financial instruments carried at fair value and still held | ||||
Change in unrealized gains (losses) included in net income | (244) | (678) | 2,444 | |
Variable Interest Entities Liabilities - Derivative Instruments [Member] | Net Investment Income [Member] | ||||
Changes in unrealized gains (losses) within Level 3 financial instruments carried at fair value and still held | ||||
Change in unrealized gains (losses) included in net income | 9 | 14 | 101 | |
Credit default swaps | Realized Gain (Loss) [Member] | ||||
Changes in unrealized gains (losses) within Level 3 financial instruments carried at fair value and still held | ||||
Change in unrealized gains (losses) included in net income | [1] | $ (6) | $ (1) | $ 9 |
[1] | Included in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). |
Fair Value of Financial Inst148
Fair Value of Financial Instruments (Components Of The Transfers In And Out Of Level 3) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | |||
Transfers In to Level 3 | $ 284 | $ 1,856 | $ 401 |
Transfers Out of Level 3 | (196) | (2,196) | (581) |
Transfers In or Out of Level 3, Net | 88 | (340) | (180) |
Transfers between Levels 1 and 2 | 172 | ||
Corporate bonds [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | |||
Transfers In to Level 3 | 224 | 475 | 373 |
Transfers Out of Level 3 | (166) | (456) | (459) |
Transfers In or Out of Level 3, Net | 58 | 19 | (86) |
ABS [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | |||
Transfers In to Level 3 | 26 | ||
Transfers Out of Level 3 | (4) | (34) | |
Transfers In or Out of Level 3, Net | 22 | (34) | |
Foreign government bonds [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | |||
Transfers In to Level 3 | 4 | 25 | |
Transfers Out of Level 3 | (4) | ||
Transfers In or Out of Level 3, Net | 25 | ||
CMBS [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | |||
Transfers In to Level 3 | 6 | ||
Transfers Out of Level 3 | (8) | ||
Transfers In or Out of Level 3, Net | 6 | (8) | |
CLOs [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | |||
Transfers In to Level 3 | 4 | 53 | |
Transfers Out of Level 3 | (16) | (4) | (28) |
Transfers In or Out of Level 3, Net | (12) | 49 | (28) |
State and municipal bonds [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | |||
Transfers Out of Level 3 | (29) | ||
Transfers In or Out of Level 3, Net | (29) | ||
Hybrid and redeemable preferred securities [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | |||
Transfers In to Level 3 | 48 | 17 | 20 |
Transfers Out of Level 3 | (5) | (22) | (50) |
Transfers In or Out of Level 3, Net | 43 | (5) | (30) |
Available-for-sale equity securities [Member] | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | |||
Transfers Out of Level 3 | (1) | ||
Transfers In or Out of Level 3, Net | (1) | ||
Trading securities [Member] | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | |||
Transfers In to Level 3 | 4 | 10 | 8 |
Transfers Out of Level 3 | $ (4) | (11) | (2) |
Transfers In or Out of Level 3, Net | (1) | $ 6 | |
Derivative investments | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | |||
Transfers Out of Level 3 | (426) | ||
Transfers In or Out of Level 3, Net | (426) | ||
GLB embedded derivative reserves | Other Liabilities [Member] | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | |||
Transfers In to Level 3 | 1,244 | ||
Transfers In or Out of Level 3, Net | 1,244 | ||
GLB embedded derivative reserves | Future contract benefits [Member] | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | |||
Transfers Out of Level 3 | (1,244) | ||
Transfers In or Out of Level 3, Net | $ (1,244) |
Fair Value of Financial Inst149
Fair Value of Financial Instruments (Fair Value Inputs Quantitative Information) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Assets Fair Value Disclosure [Abstract] | ||
Assets Fair Value Disclosure | $ 217,146 | $ 221,209 |
Liabilities Fair Value Disclosure [Abstract] | ||
Liabilities measured at fair value | (4,200) | (3,517) |
Significant Unobservable Inputs (Level 3) [Member] | ||
Assets Fair Value Disclosure [Abstract] | ||
Assets Fair Value Disclosure | 4,163 | 4,149 |
Liabilities Fair Value Disclosure [Abstract] | ||
Liabilities measured at fair value | (2,364) | $ (1,602) |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Corporate bonds [Member] | Fixed Maturity AFS Securities [Member] | ||
Assets Fair Value Disclosure [Abstract] | ||
Assets Fair Value Disclosure | 1,314 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | ABS [Member] | Fixed Maturity AFS Securities [Member] | ||
Assets Fair Value Disclosure [Abstract] | ||
Assets Fair Value Disclosure | 25 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Foreign government bonds [Member] | Fixed Maturity AFS Securities [Member] | ||
Assets Fair Value Disclosure [Abstract] | ||
Assets Fair Value Disclosure | 77 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Hybrid and redeemable preferred securities [Member] | Fixed Maturity AFS Securities [Member] | ||
Assets Fair Value Disclosure [Abstract] | ||
Assets Fair Value Disclosure | 20 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Available-for-sale equity securities [Member] | ||
Assets Fair Value Disclosure [Abstract] | ||
Assets Fair Value Disclosure | 27 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Other Assets Reinsurance Recoverable [Member] | ||
Assets Fair Value Disclosure [Abstract] | ||
Assets Fair Value Disclosure | 268 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Future contract benefits - indexed annuity and IUL contracts embedded derivatives | Future contract benefits [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Liabilities measured at fair value | (1,100) | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Other Liabilities GLB Reserves Embedded Derivatives [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Liabilities measured at fair value | $ (953) | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Minimum [Member] | Corporate bonds [Member] | Fixed Maturity AFS Securities [Member] | ||
Assets Fair Value Disclosure [Abstract] | ||
Liquidity Duration Adjustment | 0.10% | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Minimum [Member] | ABS [Member] | Fixed Maturity AFS Securities [Member] | ||
Assets Fair Value Disclosure [Abstract] | ||
Liquidity Duration Adjustment | 3.30% | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Minimum [Member] | Foreign government bonds [Member] | Fixed Maturity AFS Securities [Member] | ||
Assets Fair Value Disclosure [Abstract] | ||
Liquidity Duration Adjustment | 1.90% | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Minimum [Member] | Hybrid and redeemable preferred securities [Member] | Fixed Maturity AFS Securities [Member] | ||
Assets Fair Value Disclosure [Abstract] | ||
Liquidity Duration Adjustment | 2.10% | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Minimum [Member] | Available-for-sale equity securities [Member] | ||
Assets Fair Value Disclosure [Abstract] | ||
Liquidity Duration Adjustment | 4.30% | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Minimum [Member] | Other Assets Reinsurance Recoverable [Member] | ||
Fair Value Inputs [Abstract] | ||
Lapse Rate | 1.00% | |
Utilization of guaranteed withdrawal | 90.00% | |
Claims Utilization Factor | 60.00% | |
Premiums Utilization Factor | 70.00% | |
NPR | 0.02% | |
Volatility | 1.00% | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Minimum [Member] | Future contract benefits - indexed annuity and IUL contracts embedded derivatives | Future contract benefits [Member] | ||
Fair Value Inputs [Abstract] | ||
Lapse Rate | 1.00% | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Minimum [Member] | Other Liabilities GLB Reserves Embedded Derivatives [Member] | ||
Fair Value Inputs [Abstract] | ||
Lapse Rate | 1.00% | |
Utilization of guaranteed withdrawal | 90.00% | |
Claims Utilization Factor | 60.00% | |
Premiums Utilization Factor | 70.00% | |
NPR | 0.02% | |
Volatility | 1.00% | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Maximum [Member] | Corporate bonds [Member] | Fixed Maturity AFS Securities [Member] | ||
Assets Fair Value Disclosure [Abstract] | ||
Liquidity Duration Adjustment | 11.70% | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Maximum [Member] | ABS [Member] | Fixed Maturity AFS Securities [Member] | ||
Assets Fair Value Disclosure [Abstract] | ||
Liquidity Duration Adjustment | 3.30% | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Maximum [Member] | Foreign government bonds [Member] | Fixed Maturity AFS Securities [Member] | ||
Assets Fair Value Disclosure [Abstract] | ||
Liquidity Duration Adjustment | 4.40% | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Maximum [Member] | Hybrid and redeemable preferred securities [Member] | Fixed Maturity AFS Securities [Member] | ||
Assets Fair Value Disclosure [Abstract] | ||
Liquidity Duration Adjustment | 2.10% | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Maximum [Member] | Available-for-sale equity securities [Member] | ||
Assets Fair Value Disclosure [Abstract] | ||
Liquidity Duration Adjustment | 8.80% | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Maximum [Member] | Other Assets Reinsurance Recoverable [Member] | ||
Fair Value Inputs [Abstract] | ||
Lapse Rate | 30.00% | |
Utilization of guaranteed withdrawal | 100.00% | |
Claims Utilization Factor | 100.00% | |
Premiums Utilization Factor | 120.00% | |
NPR | 0.38% | |
Volatility | 29.00% | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Maximum [Member] | Future contract benefits - indexed annuity and IUL contracts embedded derivatives | Future contract benefits [Member] | ||
Fair Value Inputs [Abstract] | ||
Lapse Rate | 15.00% | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Maximum [Member] | Other Liabilities GLB Reserves Embedded Derivatives [Member] | ||
Fair Value Inputs [Abstract] | ||
Lapse Rate | 30.00% | |
Utilization of guaranteed withdrawal | 100.00% | |
Claims Utilization Factor | 100.00% | |
Premiums Utilization Factor | 120.00% | |
NPR | 0.38% | |
Volatility | 29.00% |
Segment Information (Narrative)
Segment Information (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Information [Abstract] | |
Federal rate | 35.00% |
Segment Information (Reconcilia
Segment Information (Reconciliation Of Revenue From Segments To Consolidated) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule Of Segment Reporting And Reconcilliation [Line Items] | |||||||||||
Total revenues | $ 3,171 | $ 3,716 | $ 3,381 | $ 3,304 | $ 3,685 | $ 3,411 | $ 3,282 | $ 3,176 | $ 13,572 | $ 13,554 | $ 11,969 |
Annuities Segment [Member] | |||||||||||
Schedule Of Segment Reporting And Reconcilliation [Line Items] | |||||||||||
Total revenues | 4,120 | 3,746 | 3,321 | ||||||||
Retirement Plan Services Segment [Member] | |||||||||||
Schedule Of Segment Reporting And Reconcilliation [Line Items] | |||||||||||
Total revenues | 1,101 | 1,090 | 1,071 | ||||||||
Life Segment [Member] | |||||||||||
Schedule Of Segment Reporting And Reconcilliation [Line Items] | |||||||||||
Total revenues | 5,948 | 6,003 | 5,170 | ||||||||
Group Protection Segment [Member] | |||||||||||
Schedule Of Segment Reporting And Reconcilliation [Line Items] | |||||||||||
Total revenues | 2,357 | 2,445 | 2,260 | ||||||||
Other Operations [Member] | |||||||||||
Schedule Of Segment Reporting And Reconcilliation [Line Items] | |||||||||||
Total revenues | 374 | 432 | 417 | ||||||||
Excluded realized gain (loss) pre-tax [Member] | |||||||||||
Schedule Of Segment Reporting And Reconcilliation [Line Items] | |||||||||||
Total revenues | (329) | (165) | (274) | ||||||||
Amortization of deferred gain arising from reserve changes on business sold through reinsurance, pre-tax [Member] | |||||||||||
Schedule Of Segment Reporting And Reconcilliation [Line Items] | |||||||||||
Total revenues | 3 | 3 | 3 | ||||||||
Amortization Of DFEL Associated With Benefit Ratio Unlocking, Pre-Tax [Member] | |||||||||||
Schedule Of Segment Reporting And Reconcilliation [Line Items] | |||||||||||
Total revenues | (2) | 1 | |||||||||
Parent Company [Member] | |||||||||||
Schedule Of Segment Reporting And Reconcilliation [Line Items] | |||||||||||
Total revenues | $ 1,311 | $ 918 | $ 849 |
Segment Information (Reconci152
Segment Information (Reconciliation Of Income (Loss) From Operations By Segment To Consolidated Net Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | |||||||||||
Income (loss) from continuing operations | $ 348 | $ 439 | $ 398 | $ 329 | $ 1,154 | $ 1,514 | $ 1,244 | ||||
Income (loss) from discontinued operations, after-tax | 1 | 1 | |||||||||
Net income (loss) | $ 283 | $ 227 | $ 344 | $ 300 | $ 349 | $ 439 | $ 398 | $ 329 | 1,154 | 1,515 | 1,244 |
Annuities Segment [Member] | |||||||||||
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | |||||||||||
Income (loss) from continuing operations | 996 | 925 | 750 | ||||||||
Retirement Plan Services Segment [Member] | |||||||||||
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | |||||||||||
Income (loss) from continuing operations | 140 | 160 | 141 | ||||||||
Life Segment [Member] | |||||||||||
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | |||||||||||
Income (loss) from continuing operations | 370 | 612 | 544 | ||||||||
Group Protection Segment [Member] | |||||||||||
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | |||||||||||
Income (loss) from continuing operations | 43 | 23 | 71 | ||||||||
Other Operations [Member] | |||||||||||
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | |||||||||||
Income (loss) from continuing operations | (154) | (109) | (122) | ||||||||
Excluded realized gain (loss), after-tax [Member] | |||||||||||
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | |||||||||||
Income (loss) from continuing operations | (214) | (106) | (178) | ||||||||
Income (loss) from reserve changes (net of related amortization) on business sold through reinsurance, after-tax [Member] | |||||||||||
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | |||||||||||
Income (loss) from continuing operations | 2 | 2 | 2 | ||||||||
Benefit ratio unlocking, after-tax [Member] | |||||||||||
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | |||||||||||
Income (loss) from continuing operations | (29) | 7 | 36 | ||||||||
Parent Company [Member] | |||||||||||
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | |||||||||||
Net income (loss) | $ 1,154 | $ 1,515 | $ 1,244 |
Segment Information (Reconci153
Segment Information (Reconciliation of Net Investment Income from Segments to Consolidated Net Income (Loss)) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net Investment Income [Abstract] | |||
Total net investment income | $ 4,827 | $ 4,859 | $ 4,754 |
Parent Company [Member] | |||
Net Investment Income [Abstract] | |||
Total net investment income | 1 | ||
Annuities Segment [Member] | |||
Net Investment Income [Abstract] | |||
Total net investment income | 1,004 | 1,033 | 1,044 |
Retirement Plan Services Segment [Member] | |||
Net Investment Income [Abstract] | |||
Total net investment income | 846 | 831 | 827 |
Life Segment [Member] | |||
Net Investment Income [Abstract] | |||
Total net investment income | 2,541 | 2,529 | 2,452 |
Group Protection Segment [Member] | |||
Net Investment Income [Abstract] | |||
Total net investment income | 184 | 180 | 165 |
Other Operations [Member] | |||
Net Investment Income [Abstract] | |||
Total net investment income | $ 252 | $ 286 | $ 266 |
Segment Information (Reconci154
Segment Information (Reconciliation of Amortization of DAC and VOBA, Net of Interest from Segments to Consolidated Net Income (Loss)) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Amortization of DAC and VOBA, Net of Interest | |||
Amortization of DAC and VOBA, net of interest | $ 1,283 | $ 1,111 | $ 931 |
Annuities Segment [Member] | |||
Amortization of DAC and VOBA, Net of Interest | |||
Amortization of DAC and VOBA, net of interest | 342 | 362 | 383 |
Retirement Plan Services Segment [Member] | |||
Amortization of DAC and VOBA, Net of Interest | |||
Amortization of DAC and VOBA, net of interest | 30 | 37 | 48 |
Life Segment [Member] | |||
Amortization of DAC and VOBA, Net of Interest | |||
Amortization of DAC and VOBA, net of interest | 831 | 655 | 447 |
Group Protection Segment [Member] | |||
Amortization of DAC and VOBA, Net of Interest | |||
Amortization of DAC and VOBA, net of interest | $ 80 | $ 57 | $ 53 |
Segment Information (Reconci155
Segment Information (Reconciliation of Federal Income Tax Expense (Benefit) from Segments to Consolidated Net Income (Loss)) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reconciliation of Federal Income Tax Expense (Benefit) from Segments to Consolidated [Abstract] | |||
Total federal income tax expense (benefit) | $ 276 | $ 483 | $ 387 |
Parent Company [Member] | |||
Reconciliation of Federal Income Tax Expense (Benefit) from Segments to Consolidated [Abstract] | |||
Total federal income tax expense (benefit) | (66) | (77) | (73) |
Annuities Segment [Member] | |||
Reconciliation of Federal Income Tax Expense (Benefit) from Segments to Consolidated [Abstract] | |||
Total federal income tax expense (benefit) | 262 | 238 | 177 |
Retirement Plan Services Segment [Member] | |||
Reconciliation of Federal Income Tax Expense (Benefit) from Segments to Consolidated [Abstract] | |||
Total federal income tax expense (benefit) | 49 | 51 | 49 |
Life Segment [Member] | |||
Reconciliation of Federal Income Tax Expense (Benefit) from Segments to Consolidated [Abstract] | |||
Total federal income tax expense (benefit) | 159 | 295 | 268 |
Group Protection Segment [Member] | |||
Reconciliation of Federal Income Tax Expense (Benefit) from Segments to Consolidated [Abstract] | |||
Total federal income tax expense (benefit) | 23 | 12 | 38 |
Other Operations [Member] | |||
Reconciliation of Federal Income Tax Expense (Benefit) from Segments to Consolidated [Abstract] | |||
Total federal income tax expense (benefit) | (86) | (57) | (71) |
Excluded realized gain (loss) pre-tax [Member] | |||
Reconciliation of Federal Income Tax Expense (Benefit) from Segments to Consolidated [Abstract] | |||
Total federal income tax expense (benefit) | (116) | (60) | (95) |
Reserve changes (net of related amortization) on business sold through reinsurance [Member] | |||
Reconciliation of Federal Income Tax Expense (Benefit) from Segments to Consolidated [Abstract] | |||
Total federal income tax expense (benefit) | 1 | 1 | 1 |
Benefit ratio unlocking [Member] | |||
Reconciliation of Federal Income Tax Expense (Benefit) from Segments to Consolidated [Abstract] | |||
Total federal income tax expense (benefit) | $ (16) | $ 3 | $ 20 |
Segment Information (Reconci156
Segment Information (Reconciliation of Assets From Segments to Consolidated Balance Sheet) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule Of Segment Reporting And Reconcilliation [Line Items] | ||
Total assets | $ 251,937 | $ 253,377 |
Parent Company [Member] | ||
Schedule Of Segment Reporting And Reconcilliation [Line Items] | ||
Total assets | 20,027 | 21,999 |
Annuities Segment [Member] | ||
Schedule Of Segment Reporting And Reconcilliation [Line Items] | ||
Total assets | 130,641 | 130,316 |
Retirement Plan Services Segment [Member] | ||
Schedule Of Segment Reporting And Reconcilliation [Line Items] | ||
Total assets | 32,649 | 33,678 |
Life Segment [Member] | ||
Schedule Of Segment Reporting And Reconcilliation [Line Items] | ||
Total assets | 71,062 | 70,493 |
Group Protection Segment [Member] | ||
Schedule Of Segment Reporting And Reconcilliation [Line Items] | ||
Total assets | 4,182 | 4,238 |
Other Operations [Member] | ||
Schedule Of Segment Reporting And Reconcilliation [Line Items] | ||
Total assets | $ 13,403 | $ 14,652 |
Supplemental Disclosures of 157
Supplemental Disclosures of Cash Flow (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Supplemental Cash Flow Information [Abstract] | |||
Interest paid | $ 265 | $ 272 | $ 260 |
Income taxes paid (received) | 215 | 254 | 10 |
Significant non-cash investing and financing transactions: | |||
Value of stock received from stock options exercised through stock swap transactions | 13 | $ 5 | |
Other assets received in our financing transaction | $ 252 | ||
Other investments received in our repurchase program | $ 152 |
Quarterly Results of Operati158
Quarterly Results of Operations (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Total revenues | $ 3,171 | $ 3,716 | $ 3,381 | $ 3,304 | $ 3,685 | $ 3,411 | $ 3,282 | $ 3,176 | $ 13,572 | $ 13,554 | $ 11,969 |
Total expenses | 2,820 | 3,448 | 2,932 | 2,942 | 3,253 | 2,810 | 2,745 | 2,749 | 12,142 | 11,557 | 10,338 |
Income (loss) from continuing operations | 348 | 439 | 398 | 329 | 1,154 | 1,514 | 1,244 | ||||
Income (loss) from discontinued operations, net of federal income tax expense (benefit) | 1 | 1 | |||||||||
Net income (loss) | $ 283 | $ 227 | $ 344 | $ 300 | $ 349 | $ 439 | $ 398 | $ 329 | $ 1,154 | $ 1,515 | $ 1,244 |
Earnings (loss) per common share - basic: | |||||||||||
Income (loss) from continuing operations (in dollars per share) | $ 1.35 | $ 1.69 | $ 1.52 | $ 1.25 | $ 4.60 | $ 5.81 | $ 4.68 | ||||
Net income (loss) (in dollars per share) | $ 1.15 | $ 0.91 | $ 1.37 | $ 1.17 | 1.35 | 1.69 | 1.52 | 1.25 | 4.60 | 5.81 | 4.68 |
Earnings (loss) per common share - diluted: | |||||||||||
Income (loss) from continuing operations (in dollars per share) | 1.32 | 1.65 | 1.48 | 1.21 | 4.51 | 5.67 | 4.52 | ||||
Net income (loss) (in dollars per share) | $ 1.14 | $ 0.87 | $ 1.35 | $ 1.15 | $ 1.32 | $ 1.65 | $ 1.48 | $ 1.21 | $ 4.51 | $ 5.67 | $ 4.52 |
Parent Company [Member] | |||||||||||
Total revenues | $ 1,311 | $ 918 | $ 849 | ||||||||
Total expenses | 315 | 325 | 333 | ||||||||
Net income (loss) | $ 1,154 | $ 1,515 | $ 1,244 |
SCHEDULE I - CONSOLIDATED SU159
SCHEDULE I - CONSOLIDATED SUMMARY OF INVESTMENTS - OTHER THAN INVESTMENTS IN RELATED PARTIES (Details) $ in Millions | Dec. 31, 2015USD ($) | |
Summary of investments, other than investments in related parties [Line Items] | ||
Cost | $ 99,217 | |
Carrying Value | 102,208 | |
Trading securities [Member] | ||
Summary of investments, other than investments in related parties [Line Items] | ||
Cost | 1,653 | |
Fair Value | 1,854 | |
Carrying Value | 1,854 | |
Mortgage loans on real estate [Member] | ||
Summary of investments, other than investments in related parties [Line Items] | ||
Cost | 8,678 | |
Fair Value | 8,936 | |
Carrying Value | 8,678 | |
Real estate [Member] | ||
Summary of investments, other than investments in related parties [Line Items] | ||
Cost | 17 | |
Carrying Value | 17 | |
Policy loans [Member] | ||
Summary of investments, other than investments in related parties [Line Items] | ||
Cost | 2,545 | |
Carrying Value | 2,545 | |
Derivative instruments [Member] | ||
Summary of investments, other than investments in related parties [Line Items] | ||
Cost | 1,731 | [1] |
Fair Value | 1,537 | [1] |
Carrying Value | 1,537 | [1] |
Derivative Liabilities | 69 | |
Other Investments [Member] | ||
Summary of investments, other than investments in related parties [Line Items] | ||
Cost | 1,778 | |
Fair Value | 1,778 | |
Carrying Value | 1,778 | |
Fixed maturity AFS securities [Member] | ||
Summary of investments, other than investments in related parties [Line Items] | ||
Cost | 82,589 | [2] |
Fair Value | 85,562 | [2] |
Carrying Value | 85,562 | [2] |
Fixed maturity AFS securities [Member] | Hybrid and redeemable preferred securities [Member] | ||
Summary of investments, other than investments in related parties [Line Items] | ||
Cost | 762 | [2] |
Fair Value | 806 | [2] |
Carrying Value | 806 | [2] |
Fixed maturity AFS securities [Member] | Variable interest entities [Member] | ||
Summary of investments, other than investments in related parties [Line Items] | ||
Cost | 596 | [2] |
Fair Value | 598 | [2] |
Carrying Value | 598 | [2] |
Equity AFS securities [Member] | ||
Summary of investments, other than investments in related parties [Line Items] | ||
Cost | 226 | [2] |
Fair Value | 237 | [2] |
Carrying Value | 237 | [2] |
Bonds | Fixed maturity AFS securities [Member] | U.S. government and government agencies and authorities [Member] | ||
Summary of investments, other than investments in related parties [Line Items] | ||
Cost | 386 | [2] |
Fair Value | 429 | [2] |
Carrying Value | 429 | [2] |
Bonds | Fixed maturity AFS securities [Member] | ABS [Member] | ||
Summary of investments, other than investments in related parties [Line Items] | ||
Cost | 1,652 | [2] |
Fair Value | 1,688 | [2] |
Carrying Value | 1,688 | [2] |
Bonds | Fixed maturity AFS securities [Member] | State and municipal bonds [Member] | ||
Summary of investments, other than investments in related parties [Line Items] | ||
Cost | 3,821 | [2] |
Fair Value | 4,480 | [2] |
Carrying Value | 4,480 | [2] |
Bonds | Fixed maturity AFS securities [Member] | MBS | ||
Summary of investments, other than investments in related parties [Line Items] | ||
Cost | 3,930 | [2] |
Fair Value | 4,104 | [2] |
Carrying Value | 4,104 | [2] |
Bonds | Fixed maturity AFS securities [Member] | Foreign governments [Member] | ||
Summary of investments, other than investments in related parties [Line Items] | ||
Cost | 465 | [2] |
Fair Value | 524 | [2] |
Carrying Value | 524 | [2] |
Bonds | Fixed maturity AFS securities [Member] | Public utilities [Member] | ||
Summary of investments, other than investments in related parties [Line Items] | ||
Cost | 11,922 | [2] |
Fair Value | 12,653 | [2] |
Carrying Value | 12,653 | [2] |
Bonds | Fixed maturity AFS securities [Member] | All other corporate bonds [Member] | ||
Summary of investments, other than investments in related parties [Line Items] | ||
Cost | 59,055 | [2] |
Fair Value | 60,280 | [2] |
Carrying Value | 60,280 | [2] |
Common Stock | Equity AFS securities [Member] | Banks, trusts, and insurance companies [Member] | ||
Summary of investments, other than investments in related parties [Line Items] | ||
Cost | 173 | [2] |
Fair Value | 171 | [2] |
Carrying Value | 171 | [2] |
Common Stock | Equity AFS securities [Member] | Industrial, miscellaneous and all other [Member] | ||
Summary of investments, other than investments in related parties [Line Items] | ||
Cost | 3 | [2] |
Fair Value | 2 | [2] |
Carrying Value | 2 | [2] |
Common Stock | Equity AFS securities [Member] | Nonredeemable preferred securities [Member] | ||
Summary of investments, other than investments in related parties [Line Items] | ||
Cost | 50 | [2] |
Fair Value | 64 | [2] |
Carrying Value | $ 64 | [2] |
[1] | Derivative investment assets were offset by $69 million in derivative liabilities reflected in other liabilities on our Consolidated Balance Sheets. | |
[2] | Investments deemed to have declines in value that are other-than-temporary are written down or reserved for to reduce the carrying value to their estimated realizable value. |
SCHEDULE II - CONDENSED FINA160
SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Balance Sheets) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Assets | |||||
Derivative investments | $ 1,537 | $ 1,860 | |||
Other investments | 1,778 | 1,709 | |||
Cash and invested cash | 3,146 | 3,919 | $ 2,364 | $ 4,230 | |
Other assets | 3,483 | 2,845 | |||
Total assets | 251,937 | 253,377 | |||
Liabilities | |||||
Short-term debt | 250 | ||||
Long-term debt | 5,582 | 5,270 | |||
Payables for collateral on investments | 4,657 | 4,409 | |||
Other liabilities | 5,565 | 5,776 | |||
Total liabilities | $ 238,320 | $ 237,637 | |||
Contingencies and Commitments (See Note 13) | |||||
Stockholders Equity | |||||
Common stock - 800,000,000 shares authorized | $ 6,298 | $ 6,622 | |||
Retained earnings | 6,474 | 6,022 | |||
Accumulated other comprehensive income (loss) | 845 | 3,096 | |||
Total stockholders' equity | 13,617 | 15,740 | 13,452 | ||
Total Liabilities and Stockholders' Equity | 251,937 | 253,377 | |||
Parent Company [Member] | |||||
Assets | |||||
Investments in subsidiaries | [1] | 16,499 | 18,488 | ||
Derivative investments | 253 | 298 | |||
Other investments | 40 | 5 | |||
Cash and invested cash | 681 | 666 | $ 1,558 | $ 844 | |
Loans and accrued interest to subsidiaries | [2] | 2,522 | 2,495 | ||
Other assets | 32 | 47 | |||
Total assets | 20,027 | 21,999 | |||
Liabilities | |||||
Common dividends payable | 61 | 51 | |||
Short-term debt | 250 | ||||
Long-term debt | 5,331 | 5,021 | |||
Loans from subsidiaries | [3] | 521 | 453 | ||
Payables for collateral on investments | 94 | 96 | |||
Other liabilities | 403 | 388 | |||
Total liabilities | $ 6,410 | $ 6,259 | |||
Contingencies and Commitments (See Note 13) | |||||
Stockholders Equity | |||||
Common stock - 800,000,000 shares authorized | $ 6,298 | $ 6,622 | |||
Retained earnings | 6,474 | 6,022 | |||
Accumulated other comprehensive income (loss) | 845 | 3,096 | |||
Total stockholders' equity | 13,617 | 15,740 | |||
Total Liabilities and Stockholders' Equity | $ 20,027 | $ 21,999 | |||
[1] | Eliminated in consolidation. | ||||
[2] | Eliminated in consolidation. | ||||
[3] | Eliminated in consolidation. |
SCHEDULE II - CONDENSED FINA161
SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Details) - shares | Dec. 31, 2015 | Dec. 31, 2014 |
Stockholders' Equity Parenthetical Information | ||
Common stock - shares authorized (in shares) | 800,000,000 | 800,000,000 |
SCHEDULE II - CONDENSED FINA162
SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Statements of Comprehensive Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Revenues | ||||||||||||
Net investment income | $ 4,827 | $ 4,859 | $ 4,754 | |||||||||
Other revenues | 531 | 960 | 520 | |||||||||
Total revenues | $ 3,171 | $ 3,716 | $ 3,381 | $ 3,304 | $ 3,685 | $ 3,411 | $ 3,282 | $ 3,176 | 13,572 | 13,554 | 11,969 | |
Expenses | ||||||||||||
Operating and administrative | 1,701 | 1,640 | 1,630 | |||||||||
Total expenses | 2,820 | 3,448 | 2,932 | 2,942 | 3,253 | 2,810 | 2,745 | 2,749 | 12,142 | 11,557 | 10,338 | |
Income before federal income tax benefit, equity in income of subsidiaries, less dividends | 1,430 | 1,997 | 1,631 | |||||||||
Federal income tax expense (benefit) | 276 | 483 | 387 | |||||||||
Net income (loss) | $ 283 | $ 227 | $ 344 | $ 300 | $ 349 | $ 439 | $ 398 | $ 329 | 1,154 | 1,515 | 1,244 | |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract] | ||||||||||||
Unrealized investment gains (losses) | (2,229) | 1,591 | (2,335) | |||||||||
Foreign currency translation adjustment | (2) | 2 | (1) | |||||||||
Funded status of employee benefit plans | 20 | 60 | (91) | |||||||||
Comprehensive income (loss) | (1,097) | 3,048 | (1,001) | |||||||||
Parent Company [Member] | ||||||||||||
Revenues | ||||||||||||
Dividends from subsidiaries | [1] | 1,175 | 791 | 725 | ||||||||
Interest from subsidiaries | [1] | 111 | 125 | 128 | ||||||||
Net investment income | 1 | |||||||||||
Realized gain (loss) | 1 | (9) | ||||||||||
Other revenues | 25 | 5 | ||||||||||
Total revenues | 1,311 | 918 | 849 | |||||||||
Expenses | ||||||||||||
Operating and administrative | 38 | 39 | 46 | |||||||||
Interest - subsidiaries | [1] | 7 | 6 | 5 | ||||||||
Interest - other | 270 | 280 | 282 | |||||||||
Total expenses | 315 | 325 | 333 | |||||||||
Income before federal income tax benefit, equity in income of subsidiaries, less dividends | 996 | 593 | 516 | |||||||||
Federal income tax expense (benefit) | (66) | (77) | (73) | |||||||||
Income (loss) before equity in income (loss) of subsidiaries, less dividends | 1,062 | 670 | 589 | |||||||||
Equity in income (loss) of subsidiaries, less dividends | [2] | 92 | 845 | 655 | ||||||||
Net income (loss) | 1,154 | 1,515 | 1,244 | |||||||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract] | ||||||||||||
Unrealized investment gains (losses) | (2,229) | 1,591 | (2,335) | |||||||||
Foreign currency translation adjustment | (2) | 2 | (1) | |||||||||
Funded status of employee benefit plans | (20) | (60) | 91 | |||||||||
Total other comprehensive income (loss), net of tax | (2,251) | 1,533 | (2,245) | |||||||||
Comprehensive income (loss) | $ (1,097) | $ 3,048 | $ (1,001) | |||||||||
[1] | Eliminated in consolidation. | |||||||||||
[2] | Eliminated in consolidation. |
SCHEDULE II - CONDENSED FINA163
SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Cash Flows Statement) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Cash Flows from Operating Activities | ||||||||||||
Net income (loss) | $ 283 | $ 227 | $ 344 | $ 300 | $ 349 | $ 439 | $ 398 | $ 329 | $ 1,154 | $ 1,515 | $ 1,244 | |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||||||
Other | 109 | 200 | (117) | |||||||||
Net cash provided by (used in) operating activities | 2,243 | 2,526 | 799 | |||||||||
Cash Flows from Investing Activities | ||||||||||||
Increase (decrease) in collateral on investments | 251 | 1,019 | (943) | |||||||||
Net cash provided by (used in) investing activities | (4,223) | (1,805) | (4,710) | |||||||||
Cash Flows from Financing Activities | ||||||||||||
Payment of long-term debt, including current maturities | (250) | (500) | ||||||||||
Issuance of long-term debt, net of issuance costs | 298 | 393 | ||||||||||
Repurchase of common stock | (900) | (650) | (450) | |||||||||
Dividends paid to common and preferred stockholders | (204) | (170) | (128) | |||||||||
Net cash provided by (used in) financing activities | 1,207 | 834 | 2,045 | |||||||||
Net increase (decrease) in cash and invested cash | (773) | 1,555 | (1,866) | |||||||||
Cash and invested cash as of beginning-of-year | 3,919 | 2,364 | 3,919 | 2,364 | 4,230 | |||||||
Cash and invested cash as of end-of-year | 3,146 | 3,919 | 3,146 | 3,919 | 2,364 | |||||||
Parent Company [Member] | ||||||||||||
Cash Flows from Operating Activities | ||||||||||||
Net income (loss) | 1,154 | 1,515 | 1,244 | |||||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||||||
Equity in (income) loss of subsidiaries greater than distributions | [1] | (92) | (845) | (655) | ||||||||
Realized (gain) loss | (1) | 9 | ||||||||||
Change in federal income tax accruals | 106 | (32) | 63 | |||||||||
Other | (74) | (1) | (10) | |||||||||
Net cash provided by (used in) operating activities | 1,094 | 636 | 651 | |||||||||
Cash Flows from Investing Activities | ||||||||||||
Sales or maturities of investments | 50 | |||||||||||
Investment acquisition | (25) | |||||||||||
Capital contribution to subsidiaries | [2] | (75) | (5) | (75) | ||||||||
Increase (decrease) in collateral on investments | (38) | (278) | 315 | |||||||||
Net cash provided by (used in) investing activities | (113) | (233) | 215 | |||||||||
Cash Flows from Financing Activities | ||||||||||||
Payment of long-term debt, including current maturities | (250) | (500) | ||||||||||
Issuance of long-term debt, net of issuance costs | 300 | 400 | ||||||||||
Increase (decrease) in loans from subsidiaries, net | [3] | 68 | (7) | 405 | ||||||||
Increase (decrease) in loans to subsidiaries, net | [4] | (27) | (410) | |||||||||
Common stock issued for benefit plans and excess tax benefits | 47 | 32 | 32 | |||||||||
Repurchase of common stock | (900) | (650) | (450) | |||||||||
Dividends paid to common and preferred stockholders | (204) | (170) | (129) | |||||||||
Net cash provided by (used in) financing activities | (966) | (1,295) | (152) | |||||||||
Net increase (decrease) in cash and invested cash | 15 | (892) | 714 | |||||||||
Cash and invested cash as of beginning-of-year | $ 666 | $ 1,558 | 666 | 1,558 | 844 | |||||||
Cash and invested cash as of end-of-year | $ 681 | $ 666 | $ 681 | $ 666 | $ 1,558 | |||||||
[1] | Eliminated in consolidation. | |||||||||||
[2] | Eliminated in consolidation. | |||||||||||
[3] | Eliminated in consolidation. | |||||||||||
[4] | Eliminated in consolidation. |
SCHEDULE III - CONDENSED SUPPLE
SCHEDULE III - CONDENSED SUPPLEMENTARY INSURANCE INFORMATION (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Supplementary Insurance Information, by Segment [Line Items] | |||
DAC and VOBA | $ 9,510 | $ 8,207 | $ 8,886 |
Future Contract Benefits | 20,708 | 20,057 | 17,251 |
Other Contract Holder Funds | 77,362 | 75,512 | 74,548 |
Insurance Premiums | 3,246 | 2,988 | 2,687 |
Net Investment Income | 4,827 | 4,859 | 4,754 |
Benefits and Interest Credited | 7,552 | 7,211 | 6,372 |
Amortization of DAC and VOBA | 1,271 | 1,114 | 938 |
Other Operating Expenses | 3,319 | 3,232 | 3,028 |
Annuities Segment [Member] | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
DAC and VOBA | 3,558 | 3,062 | 2,770 |
Future Contract Benefits | 2,095 | 1,569 | 138 |
Other Contract Holder Funds | 21,162 | 21,070 | 21,269 |
Insurance Premiums | 418 | 173 | 116 |
Net Investment Income | 1,004 | 1,034 | 1,044 |
Benefits and Interest Credited | 1,259 | 959 | 835 |
Amortization of DAC and VOBA | 330 | 365 | 390 |
Other Operating Expenses | 1,317 | 1,252 | 1,113 |
Retirement Plan Services Segment [Member] | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
DAC and VOBA | 216 | 148 | 173 |
Future Contract Benefits | 4 | 2 | |
Other Contract Holder Funds | 16,583 | 16,223 | 15,310 |
Net Investment Income | 846 | 830 | 827 |
Benefits and Interest Credited | 497 | 474 | 470 |
Amortization of DAC and VOBA | 30 | 37 | 48 |
Other Operating Expenses | 385 | 368 | 363 |
Life Segment [Member] | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
DAC and VOBA | 5,496 | 4,749 | 5,713 |
Future Contract Benefits | 10,595 | 10,347 | 9,058 |
Other Contract Holder Funds | 38,706 | 37,280 | 36,997 |
Insurance Premiums | 649 | 558 | 486 |
Net Investment Income | 2,541 | 2,530 | 2,452 |
Benefits and Interest Credited | 3,938 | 3,783 | 3,283 |
Amortization of DAC and VOBA | 831 | 655 | 447 |
Other Operating Expenses | 650 | 658 | 628 |
Group Protection Segment [Member] | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
DAC and VOBA | 240 | 248 | 230 |
Future Contract Benefits | 2,347 | 2,249 | 2,033 |
Other Contract Holder Funds | 170 | 183 | 200 |
Insurance Premiums | 2,163 | 2,252 | 2,084 |
Net Investment Income | 184 | 180 | 165 |
Benefits and Interest Credited | 1,638 | 1,778 | 1,562 |
Amortization of DAC and VOBA | 80 | 57 | 53 |
Other Operating Expenses | 573 | 574 | 537 |
Other Operations [Member] | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Future Contract Benefits | 5,667 | 5,890 | 6,022 |
Other Contract Holder Funds | 741 | 756 | 772 |
Insurance Premiums | 16 | 5 | 1 |
Net Investment Income | 252 | 285 | 266 |
Benefits and Interest Credited | 220 | 217 | 222 |
Other Operating Expenses | $ 394 | $ 380 | $ 387 |
SCHEDULE IV - CONSOLIDATED R165
SCHEDULE IV - CONSOLIDATED REINSURANCE (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Consolidated reinsurance, net [Abstract] | ||||
Premiums Earned, Net, Total | $ 3,246 | $ 2,988 | $ 2,687 | |
Embedded derivatives - Reinsurance related [Member] | ||||
Consolidated reinsurance, net [Abstract] | ||||
Gross Amount | 9,529 | 9,064 | 8,023 | |
Ceded to Other Companies | 1,311 | 1,410 | 1,275 | |
Assumed from Other Companies | 73 | 7 | 8 | |
Premiums Earned, Net, Total | 8,291 | 7,661 | 6,756 | |
Gross Amount, Life Insurance in Force | [1] | 1,032,900 | 1,034,800 | 990,600 |
Ceded to Other Companies, Life Insurance in Force | [1] | 287,400 | 292,800 | 313,200 |
Assumed from Other Companies, Life Insurance in Force | [1] | 10,400 | 1,500 | 1,700 |
Premiums, Net, Life Insurance in Force, Total | [1] | $ 755,900 | $ 743,500 | $ 679,100 |
Percentage of Amount Assumed to Net, Life Insurance in Force | [1] | 1.40% | 0.20% | 0.30% |
Life insurance and annuities [Member] | Embedded derivatives - Reinsurance related [Member] | ||||
Consolidated reinsurance, net [Abstract] | ||||
Gross Amount | [2] | $ 8,112 | $ 7,579 | $ 6,644 |
Ceded to Other Companies | [2] | 1,289 | 1,381 | 1,247 |
Assumed from Other Companies | [2] | 58 | 7 | 8 |
Premiums Earned, Net, Total | [2] | $ 6,881 | $ 6,205 | $ 5,405 |
Percentage of Amount Assumed to Net | [2] | 0.80% | 0.10% | 0.10% |
Accident and health insurance [Member] | Embedded derivatives - Reinsurance related [Member] | ||||
Consolidated reinsurance, net [Abstract] | ||||
Gross Amount | $ 1,417 | $ 1,485 | $ 1,379 | |
Ceded to Other Companies | 22 | 29 | 28 | |
Assumed from Other Companies | 15 | |||
Premiums Earned, Net, Total | $ 1,410 | $ 1,456 | $ 1,351 | |
Percentage of Amount Assumed to Net | 1.10% | 0.00% | 0.00% | |
[1] | Includes Group Protection segment and Other Operations in-force amounts. | |||
[2] | Includes insurance fees on universal life and other interest-sensitive products. |