Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Jul. 31, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2017 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2,017 | |
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 Common Stock, Shares Outstanding | 221,444,368 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Available-for-sale securities, at fair value: | ||
Fixed maturity securities (amortized cost: 2017 – $86,194; 2016 – $84,287) | $ 93,014 | $ 89,013 |
Variable interest entities' fixed maturity securities (amortized cost: 2017 - $0; 2016 - $200) | 200 | |
Equity securities (cost: 2017 – $262; 2016 – $260) | 275 | 275 |
Trading securities | 1,678 | 1,712 |
Mortgage loans on real estate | 10,023 | 9,889 |
Real estate | 23 | 24 |
Policy loans | 2,416 | 2,451 |
Derivative investments | 1,054 | 927 |
Other investments | 2,156 | 2,230 |
Total investments | 110,639 | 106,721 |
Cash and invested cash | 1,978 | 2,722 |
Deferred acquisition costs and value of business acquired | 8,555 | 9,134 |
Premiums and fees receivable | 365 | 430 |
Accrued investment income | 1,082 | 1,062 |
Reinsurance recoverables | 5,228 | 5,265 |
Funds withheld reinsurance assets | 607 | 617 |
Goodwill | 2,273 | 2,273 |
Other assets | 5,099 | 5,006 |
Separate account assets | 135,825 | 128,397 |
Total assets | 271,651 | 261,627 |
Liabilities | ||
Future contract benefits | 22,293 | 21,576 |
Other contract holder funds | 79,216 | 78,903 |
Short-term debt | 450 | |
Long-term debt | 4,901 | 5,345 |
Reinsurance related embedded derivatives | 53 | 53 |
Funds withheld reinsurance liabilities | 1,862 | 1,976 |
Deferred gain on business sold through reinsurance | 2 | 24 |
Payables for collateral on investments | 4,952 | 4,995 |
Other liabilities | 6,101 | 5,880 |
Separate account liabilities | 135,825 | 128,397 |
Total liabilities | 255,655 | 247,149 |
Contingencies and Commitments (See Note 8) | ||
Stockholders' Equity | ||
Preferred stock - 10,000,000 shares authorized | 0 | 0 |
Common stock - 800,000,000 shares authorized; 222,237,262 and 226,335,105 shares issued and outstanding as of June 30, 2017, and December 31, 2016, respectively | 5,774 | 5,869 |
Retained earnings | 7,511 | 7,043 |
Accumulated other comprehensive income (loss) | 2,711 | 1,566 |
Total stockholders' equity | 15,996 | 14,478 |
Total liabilities and stockholders' equity | $ 271,651 | $ 261,627 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Available-for-sale securities, at fair value: | ||
Fixed maturity securities (amortized cost) | $ 86,194 | $ 84,287 |
Variable interest entities' fixed maturity securities (amortized cost) | 0 | 200 |
Equity securities (cost) | $ 262 | $ 260 |
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) | 222,237,262 | 226,335,105 |
Common stock - shares outstanding (in shares) | 222,237,262 | 226,335,105 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Revenues | ||||
Insurance premiums | $ 801 | $ 728 | $ 1,608 | $ 1,544 |
Fee income | 1,393 | 1,288 | 2,747 | 2,523 |
Net investment income | 1,262 | 1,199 | 2,499 | 2,371 |
Realized gain (loss): | ||||
Total other-than-temporary impairment losses on securities | (4) | (36) | (8) | (92) |
Portion of loss recognized in other comprehensive income | 8 | 28 | ||
Net other-than-temporary impairment losses on securities recognized in earnings | (4) | (28) | (8) | (64) |
Realized gain (loss), excluding other-than-temporary impairment losses on securities | (6) | (17) | (41) | (95) |
Total realized gain (loss) | (10) | (45) | (49) | (159) |
Amortization of deferred gain on business sold through reinsurance | 4 | 18 | 22 | 37 |
Other revenues | 127 | 119 | 250 | 235 |
Total revenues | 3,577 | 3,307 | 7,077 | 6,551 |
Expenses | ||||
Interest credited | 646 | 639 | 1,293 | 1,272 |
Benefits | 1,287 | 1,208 | 2,578 | 2,540 |
Commissions and other expenses | 1,034 | 978 | 2,048 | 1,953 |
Interest and debt expense | 63 | 68 | 127 | 136 |
Strategic digitization expense | 14 | 23 | ||
Total expenses | 3,044 | 2,893 | 6,069 | 5,901 |
Income (loss) before taxes | 533 | 414 | 1,008 | 650 |
Federal income tax expense (benefit) | 122 | 89 | 162 | 114 |
Net income (loss) | 411 | 325 | 846 | 536 |
Other comprehensive income (loss), net of tax | 864 | 1,264 | 1,145 | 2,350 |
Comprehensive income (loss) | $ 1,275 | $ 1,589 | $ 1,991 | $ 2,886 |
Net Income (Loss) Per Common Share | ||||
Basic (in dollars per share) | $ 1.84 | $ 1.37 | $ 3.77 | $ 2.24 |
Diluted (in dollars per share) | 1.81 | 1.35 | 3.70 | 2.18 |
Cash dividends declared per common share | $ 0.29 | $ 0.25 | $ 0.58 | $ 0.50 |
Consolidated Statements Of Stoc
Consolidated Statements Of Stockholders' Equity - USD ($) $ in Millions | Common Stock [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total |
Balance as of beginning-of-year at Dec. 31, 2015 | $ 6,298 | $ 6,474 | $ 845 | |
Stock compensation/issued for benefit plans | 11 | |||
Net income (loss) | 536 | $ 536 | ||
Retirement of common stock/cancellation of shares | (303) | (172) | ||
Common stock dividends declared | (119) | |||
Other comprehensive income (loss), net of tax | 2,350 | 2,350 | ||
Balance as of end-of-period at Jun. 30, 2016 | 6,006 | 6,719 | 3,195 | 15,920 |
Balance as of beginning-of-year at Dec. 31, 2016 | 5,869 | 7,043 | 1,566 | 14,478 |
Stock compensation/issued for benefit plans | 58 | |||
Net income (loss) | 846 | 846 | ||
Retirement of common stock/cancellation of shares | (153) | (247) | ||
Common stock dividends declared | (131) | |||
Other comprehensive income (loss), net of tax | 1,145 | 1,145 | ||
Balance as of end-of-period at Jun. 30, 2017 | $ 5,774 | $ 7,511 | $ 2,711 | $ 15,996 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Cash Flows from Operating Activities | ||
Net income (loss) | $ 846 | $ 536 |
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 | 30 | (17) |
Trading securities purchases, sales and maturities, net | 60 | 113 |
Change in premiums and fees receivable | 65 | 6 |
Change in accrued investment income | (20) | |
Change in future contract benefits and other contract holder funds | (864) | 5 |
Change in reinsurance related assets and liabilities | (92) | (347) |
Change in accrued expenses | (96) | (180) |
Change in federal income tax accruals | 162 | (3) |
Realized (gain) loss | 49 | 159 |
Amortization of deferred gain on business sold through reinsurance | (22) | (37) |
Other | 84 | 301 |
Net cash provided by (used in) operating activities | 202 | 536 |
Cash Flows from Investing Activities | ||
Purchases of available-for-sale securities | (5,513) | (5,727) |
Sales of available-for-sale securities | 842 | 2,068 |
Maturities of available-for-sale securities | 2,840 | 2,579 |
Purchases of alternative investments | (124) | (129) |
Sales and repayments of alternative investments | 100 | 95 |
Issuance of mortgage loans on real estate | (705) | (956) |
Repayment and maturities of mortgage loans on real estate | 571 | 376 |
Issuance and repayment of policy loans, net | 34 | 38 |
Net change in collateral on investments and derivatives | (12) | 1,474 |
Other | (37) | (58) |
Net cash provided by (used in) investing activities | (2,004) | (240) |
Cash Flows from Financing Activities | ||
Proceeds from sales leaseback transaction | 45 | |
Deposits of fixed account values, including the fixed portion of variable | 5,216 | 5,015 |
Withdrawals of fixed account values, including the fixed portion of variable | (2,934) | (2,769) |
Transfers to and from separate accounts, net | (770) | (967) |
Common stock issued for benefit plans | 33 | (11) |
Repurchase of common stock | (400) | (475) |
Dividends paid to common stockholders | (132) | (122) |
Net cash provided by (used in) financing activities | 1,058 | 671 |
Net increase (decrease) in cash and invested cash | (744) | 967 |
Cash and invested cash as of beginning-of-year | 2,722 | 3,146 |
Cash and invested cash as of end-of-period | $ 1,978 | $ 4,113 |
Nature of Operations and Basis
Nature of Operations and Basis of Presentation | 6 Months Ended |
Jun. 30, 2017 | |
Nature of Operations and Basis of Presentation [Abstract] | |
Nature of Operations and Basis of Presentation | LINCOLN NATIONAL CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 1. Nature of Operations and Basis of Presentation 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 13 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 group life, disability and dental. Basis of Presentation The accompanying unaudited consolidated financial statements are prepared in accordance with United States of America generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions for the Securities and Exchange Commission (“SEC”) Quarterly Report on Form 10-Q, including Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. Therefore, the information contained in the Notes to Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 (“ 2016 Form 10-K”), should be read in connection with the reading of these interim unaudited consolidated financial statements. Certain GAAP policies, which significantly affect the determination of financial condition, results of operations and cash flows, are summarized in our 2016 Form 10-K. Certain amounts reported in prior year's consolidated financial statements have been reclassified to conform to the presentation adopted in the current year. Specifically, we reclassified cash flows from certain investing activities into their own respective line items within the Consolidated Statements of Cash Flows. Previously, these amounts were reported within purchases of other investments or sales or maturities of other investments line items, as applicable, within cash flows from investing activities. These reclassifications had no effect on net income (loss), net cash provided by (used in) investing activities, or stockholders’ equity for the prior year. In the opinion of management, these statements include all normal recurring adjustments necessary for a fair presentation of the Company’s results. Operating results for the six month period ended June 30 , 2017 , are not necessarily indicative of the results that may be expected for the full year ending December 31, 2017 . All material inter-company accounts and transactions have been eliminated in consolidation. |
New Accounting Standards
New Accounting Standards | 6 Months Ended |
Jun. 30, 2017 | |
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 (“ASUs”) issued by the Financial Accounting Standards Board (“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 2016-05, Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships The amendments clarify that a change in the counterparty to a derivative instrument identified in a hedging relationship in and of itself does not require dedesignation of that hedging relationship provided that all other hedge accounting criteria continue to be met. We adopted the guidance in this ASU prospectively. January 1, 2017 The adoption of this ASU did not have an effect on our consolidated financial condition or results of operations. ASU 2016-06, Contingent Put and Call Options in Debt Instruments The amendments clarify the requirements for assessing whether contingent call and put options that can accelerate the payment of principal on debt instruments are clearly and closely related to their debt hosts. Upon adoption of this ASU, entities will be required to assess embedded call and put options solely in accordance with the four-step decision sequence that was developed by the FASB Derivatives Implementation Group. We adopted this ASU using a modified retrospective basis applied to existing debt instruments. January 1, 2017 The adoption of this ASU did not have an effect on our consolidated financial condition or 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. January 1, 2018 Our primary revenue sources will continue to be recognized in accordance with ASC Topic 944, Financial Services – Insurance . Our analysis indicates that approximately $1 billion of our revenue reported in fee income and other revenue in our Consolidated Statements of Comprehensive Income (Loss) for the year ended December 31, 2016, is within the scope of this ASU. We continue to evaluate the impact of adopting this ASU on our consolidated financial condition and results of operations. Standard Description Projected Date of Adoption Effect on Financial Statements or Other Significant Matters 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 hold equity securities and hybrid preferred securities classified as available-for-sale (“AFS”) securities that are currently measured at fair value with changes in fair value recognized through other comprehensive income (loss) (“OCI”). We are currently evaluating these two classifications of securities to determine those securities that meet the definition of an equity security as defined in this ASU. See Note 4 for details regarding our equity and hybrid preferred securities currently classified as AFS. ASU 2016-02, Leases This standard establishes a new accounting model for leases. Lessees will recognize most leases on the balance sheet as a right-of-use asset and a related lease liability. The lease liability is measured as the present value of the lease payments over the lease term with the right-of-use asset measured at the lease liability amount and including adjustments for certain lease incentives and initial direct costs. Lease expense recognition will continue to differentiate between finance leases and operating leases resulting in a similar pattern of lease expense recognition as under current GAAP. This ASU permits a modified retrospective adoption approach that includes a number of optional practical expedients that entities may elect upon adoption. Early adoption is permitted. January 1, 2019 We are currently identifying all of our leases that will be within the scope of this standard; as such, we continue to evaluate the quantitative impact of adopting this ASU on our Consolidated Balance Sheets. Based on our initial assessment, we do not expect there to be a significant difference in our pattern of lease expense recognition under this ASU. ASU 2016-08, Principal versus Agent Considerations (Reporting Revenue Gross versus Net) These amendments clarify the implementation guidance on principal versus agent considerations in ASU 2014-09, including how an entity should identify the unit of accounting for the principal versus agent evaluation. In addition, the amendments clarify how to apply the control principle to certain types of arrangements, such as service transactions, by explaining what a principal controls before the good or service is transferred to the customer. Transition requirements are consistent with ASU 2014-09. January 1, 2018 We are currently evaluating the impact of adopting this ASU on our consolidated financial condition and results of operations. See comments under ASU 2014-09 for more information. ASU 2016-10, Identifying Performance Obligations and Licensing These amendments clarify, among other things, the accounting guidance in ASU 2014-09 regarding how an entity will determine whether promised goods or services are separately identifiable, which is an important consideration in determining whether to account for goods or services as a separate performance obligation. Transition requirements are consistent with ASU 2014-09. January 1, 2018 We are currently evaluating the impact of adopting this ASU on our consolidated financial condition and results of operations. See comments under ASU 2014-09 for more information. Standard Description Projected Date of Adoption Effect on Financial Statements or Other Significant Matters ASU 2016-12, Narrow Scope Improvements and Practical Expedients The standard update amends the revenue recognition guidance in ASU 2014-09 related to transition, collectability, noncash consideration and the presentation of sales and other similar taxes. The amendments clarify that, for a contract to be considered completed at transition, substantially all of the revenue must have been recognized under current GAAP. The amendments also clarify how an entity should evaluate the collectability threshold and when an entity can recognize nonrefundable consideration received as revenue if an arrangement does not meet the standard’s contract criteria. Transition requirements are consistent with ASU 2014-09. January 1, 2018 We are currently evaluating the impact of adopting this ASU on our consolidated financial condition and results of operations. See comments under ASU 2014-09 for more information. ASU 2016-13, Measurement of Credit Losses on Financial Instruments These amendments adopt a new model to measure and recognize credit losses for most financial assets. The method used to measure estimated credit losses for AFS debt securities will be unchanged from current GAAP; however, the amendments require credit losses to be recognized through an allowance rather than as a reduction to the amortized cost of those debt securities. The amendments will permit entities to recognize improvements in credit loss estimates on AFS debt securities by reducing the allowance account immediately through earnings. The amendments will be adopted through a cumulative effect adjustment to the beginning balance of retained earnings as of the first reporting period in which the amendments are effective. Early adoption is permitted for annual periods beginning after December 15, 2018, and interim periods therein. January 1, 2020 We are currently evaluating the impact of adopting this ASU on our consolidated financial condition and results of operations, with a primary focus on our fixed maturity securities (see Note 4). We currently reduce the amortized cost of the individual security when recognizing other-than-temporary impairment (“OTTI”) on these securities. Upon adoption of ASU 2016-13, we will no longer reduce the amortized cost of each individual security; rather we will establish a valuation allowance, and any declines or improvements in credit quality will be recognized through the valuation allowance. ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments These amendments clarify the classification of eight specific cash flow issues in an entity’s statement of cash flows where it was determined by the FASB that there is diversity in practice. Early adoption of the amendments is permitted, and retrospective transition is required for each period presented in the statement of cash flows. January 1, 2018 We are currently evaluating these disclosure requirements and will amend classifications in our Consolidated Statements of Cash Flows upon adoption as applicable. ASU 2016-16, Intra-Entity Asset Transfers Other Than Inventory This amendment requires an entity to recognize current and deferred income taxes for an intra-entity asset transfer, other than inventory, when the transfer occurs, thereby eliminating the current GAAP exception that prohibits the recognition of income taxes until the asset has been sold to an outside party. Early adoption is permitted as of the beginning of the annual reporting period for which financial statements have not been issued. January 1, 2018 We are currently evaluating the impact of adopting this ASU on our consolidated financial condition and results of operations. Standard Description Projected Date of Adoption Effect on Financial Statements or Other Significant Matters ASU 2016-18, Restricted Cash This amendment requires that amounts generally described as restricted cash and restricted cash equivalents should be included within cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. Early adoption is permitted using a retrospective transition method applied to each period presented. January 1, 2018 We will provide these additional disclosures in our Consolidated Statements of Cash Flows upon the adoption date as applicable. ASU 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers These amendments clarify 13 issues related to the adoption of ASU 2014-09. The most significant issue of these amendments for us is the clarification that all contracts within the scope of Topic 944 are excluded from the scope of ASU 2014-09, rather than just insurance contracts as described in ASU 2014-09. Transition requirements are consistent with ASU 2014-09. January 1, 2018 We are currently evaluating the impact of adopting this ASU on our consolidated financial condition and results of operations. See comments under ASU 2014-09 for more information. ASU 2017-04, Simplifying the Test for Goodwill Impairment These amendments eliminate the requirement in current GAAP to perform Step 2 of the goodwill impairment test in favor of only applying Step 1. Under Step 1, the fair value of the reporting unit is compared with its carrying value, and an impairment charge is recognized when the carrying value exceeds the reporting unit’s fair value. An entity still has the option to first perform a qualitative assessment of an individual reporting unit to determine if the quantitative assessment in Step 1 is necessary. ASU 2017-04 should be adopted prospectively, and early adoption is permitted on impairment testing dates after January 1, 2017. Impairment tests performed after January 1, 2020 We are currently evaluating the impact of adopting this ASU on our consolidated financial condition and results of operations. ASU 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost These amendments require that an entity report the service cost component of employee pension and postretirement benefit plans in the same line item as other compensation costs from services rendered by the applicable employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations. ASU 2017-07 requires retrospective adoption related to the presentation of net periodic pension cost and postretirement benefit cost. January 1, 2018 We are currently evaluating the impact of adopting this ASU on our consolidated financial condition and results of operations. ASU 2017-08, Premium Amortization on Purchased Callable Debt Securities These amendments require an entity to shorten the amortization period for certain callable debt securities held at a premium so that the premium is amortized to the earliest call date. Early adoption is permitted, and the ASU requires adoption under a modified retrospective basis through a cumulative-effect adjustment to the beginning balance of retained earnings. January 1, 2019 We are currently evaluating the impact of adopting this ASU on our consolidated financial condition and results of operations. ASU 2017-09, Compensation – Stock Compensation: Scope of Modification Accounting These amendments provide guidance when changes to the terms or conditions of a share-based payment award would require modification accounting. An entity should account for the effects of a modification unless the following are the same immediately before and after the modification: (a) the fair value of the award, (b) the vesting conditions of the award and (c) the classification of the award as an equity instrument or a liability instrument. These amendments are to be applied prospectively to awards modified on or after the effective date. Early adoption is permitted. January 1, 2018 We are currently evaluating the impact of adopting this ASU on our consolidated financial condition and results of operations. |
Variable Interest Entities ("VI
Variable Interest Entities ("VIE's") | 6 Months Ended |
Jun. 30, 2017 | |
Variable Interest Entities ("VIE's") [Abstract] | |
Variable Interest Entities ("VIE's") | 3. Variable Interest Entities (“VIEs”) Consolidated VIEs See Note 4 in our 201 6 Form 10-K for a detailed discussion of our consolidated VIEs, which information is incorporated herein by reference . As of March 2017 and December 2016 , our $ 200 million and $400 million credit-linked notes (“CLNs”) matured, respectively, and we no longer reflect the assets and liabilities associated with these VIEs on our Consolidated Balance Sheets or recognize the results of operations of these VIEs on our Consolidated Statements of Co mprehensive Income (Loss). We no longer have any exposure related to these VIEs. Asset and liability information (dollars in millions) for the consolidated VIEs included on our Consolidated Balance Sheets was as follows: As of June 30, 2017 As of December 31, 2016 Number Number of Notional Carrying of Notional Carrying Instruments Amounts Value Instruments Amounts Value Assets Fixed maturity securities: Asset-backed credit card loans (1) N/A $ - $ - N/A $ - $ 200 Total return swap 1 542 - 1 533 - Credit default swaps - - - 1 200 - Total assets 1 $ 542 $ - 2 $ 733 $ 200 (1) Reported in variable interest entities’ fixed maturity securities on our Consolidated Balance Sheets. As of June 30, 2017 , and December 31, 2016 , we did not recognize any liabilities from consolidated VIEs on our Consolidated Balance Sheets. We did hold one contingent forward instrument as of December 31, 2016; however, the instrument had a zero notional and carrying value. The gains (losses) for the consolidated VIEs (in millions) recorded on our Consolidated Statements of Comprehensive Income (Loss) were as follows: For the Three For the Six Months Ended Months Ended June 30, June 30, 2017 2016 2017 2016 Non-Qualifying Hedges Credit default swaps $ - $ (1 ) $ - $ 5 Contingent forwards - - - - Total non-qualifying hedges (1) $ - $ (1 ) $ - $ 5 (1) Reported in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss ). Unconsolidated VIEs See Note 4 in our 2016 Form 10-K for a detailed discussion of our unconsolidated VIEs, which information is incorporated herein by reference. Limited Partnerships and Limited Liability Companies We invest in certain limited partnerships (“LPs”) and limited liability companies (“LLCs”), including qualified affordable housing projects, that we have concluded are VIEs. We do not hold any substantive kick-out or participation rights in the LPs and LLCs, and we do not receive any performance fees or decision maker fees from the LPs and LLCs. Based on our analysis of the LPs and LLCs, we are not the primary beneficiary of the VIEs as we do not have the power to direct the most significant activities of the LPs and LLCs. The carrying amounts of our investments in the LPs and LLCs are recognized in other investments on our Consolidated Balance Sheets and were $1.4 billion and $1.3 billion as of June 30, 2017, and December 31, 2016, respectively. Included in these carrying amounts are our investments in qualified affordable housing projects, which were $34 million and $37 million as of June 30, 2017, and December 31, 2016, respectively. We do not have any contingent commitments to provide additional capital funding to these qualified affordable housing projects. We received returns from these qualified affordable housing projects in the form of income tax credits and other tax benefits of $2 million for the six months ended June 30, 2017, and 2016, respectively, which were recognized in federal income tax expense (benefit) on our Consolidated Statements of Comprehensive Income (Loss). Our exposure to loss is limited to the capital we invest in the LPs and LLCs, and there have been no indicators of impairment that would require us to recognize an impairment loss related to the LPs and LLCs as of June 30 , 2017. |
Investments
Investments | 6 Months Ended |
Jun. 30, 2017 | |
Investments [Abstract] | |
Investments | 4. Investments AFS Securities See Note 1 in our 2016 Form 10-K for information regarding our accounting policy relating to AFS securities, 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 June 30, 2017 Amortized Gross Unrealized Fair Cost Gains Losses OTTI (1) Value Fixed maturity securities: Corporate bonds $ 74,934 $ 6,108 $ 500 $ (6 ) $ 80,548 Asset-backed securities ("ABS") 996 46 12 (20 ) 1,050 U.S. government bonds 536 44 2 - 578 Foreign government bonds 397 58 - - 455 Residential mortgage-backed securities ("RMBS") 3,412 160 38 (18 ) 3,552 Commercial mortgage-backed securities ("CMBS") 466 10 2 (2 ) 476 Collateralized loan obligations ("CLOs") 697 4 2 (4 ) 703 State and municipal bonds 4,172 850 12 - 5,010 Hybrid and redeemable preferred securities 584 85 27 - 642 Total fixed maturity securities 86,194 7,365 595 (50 ) 93,014 Equity securities 262 19 6 - 275 Total AFS securities $ 86,456 $ 7,384 $ 601 $ (50 ) $ 93,289 As of December 31, 2016 Amortized Gross Unrealized Fair Cost Gains Losses OTTI (1) Value Fixed maturity securities: Corporate bonds $ 73,275 $ 4,754 $ 970 $ (5 ) $ 77,064 ABS 1,047 39 14 (13 ) 1,085 U.S. government bonds 384 37 2 - 419 Foreign government bonds 449 58 1 - 506 RMBS 3,534 147 73 (6 ) 3,614 CMBS 345 8 4 (1 ) 350 CLOs 742 1 3 (4 ) 744 State and municipal bonds 3,929 718 20 - 4,627 Hybrid and redeemable preferred securities 582 70 48 - 604 VIEs’ fixed maturity securities 200 - - - 200 Total fixed maturity securities 84,487 5,832 1,135 (29 ) 89,213 Equity securities 260 19 4 - 275 Total AFS securities $ 84,747 $ 5,851 $ 1,139 $ (29 ) $ 89,488 (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. The amortized cost and fair value of fixed maturity AFS securities by contractual maturities (in millions) as of June 30 , 2017 , were as follows: Amortized Fair Cost Value Due in one year or less $ 3,559 $ 3,750 Due after one year through five years 16,854 18,006 Due after five years through ten years 15,756 16,742 Due after ten years 44,454 48,735 Subtotal 80,623 87,233 Structured securities (ABS, MBS, CLOs) 5,571 5,781 Total fixed maturity AFS securities $ 86,194 $ 93,014 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 p ortion 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 June 30, 2017 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 $ 8,521 $ 223 $ 2,417 $ 279 $ 10,938 $ 502 ABS 84 3 260 21 344 24 U.S. government bonds 172 2 - - 172 2 RMBS 805 35 146 5 951 40 CMBS 92 2 8 2 100 4 CLOs 227 2 19 - 246 2 State and municipal bonds 132 7 47 5 179 12 Hybrid and redeemable preferred securities 22 1 151 26 173 27 Total fixed maturity securities 10,055 275 3,048 338 13,103 613 Equity securities 10 4 15 1 25 5 Total AFS securities $ 10,065 $ 279 $ 3,063 $ 339 $ 13,128 $ 618 Total number of AFS securities in an unrealized loss position 1,155 As of December 31, 2016 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 $ 15,820 $ 569 $ 3,187 $ 403 $ 19,007 $ 972 ABS 201 4 298 25 499 29 U.S. government bonds 18 2 - - 18 2 Foreign government bonds 29 1 - - 29 1 RMBS 989 58 392 23 1,381 81 CMBS 190 4 19 2 209 6 CLOs 259 3 25 - 284 3 State and municipal bonds 227 12 47 8 274 20 Hybrid and redeemable preferred securities 76 4 143 44 219 48 Total fixed maturity securities 17,809 657 4,111 505 21,920 1,162 Equity securities 4 2 44 2 48 4 Total AFS securities $ 17,813 $ 659 $ 4,155 $ 507 $ 21,968 $ 1,166 Total number of AFS securities in an unrealized loss position 1,744 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 June 30, 2017 Number Fair Gross Unrealized of Value Losses OTTI Securities (1) Less than six months $ 64 $ 26 $ - 21 Six months or greater, but less than nine months 41 14 - 5 Nine months or greater, but less than twelve months 2 1 1 3 Twelve months or greater 253 110 9 51 Total $ 360 $ 151 $ 10 80 As of December 31, 2016 Number Fair Gross Unrealized of Value Losses OTTI Securities (1) Less than six months $ 174 $ 52 $ 2 19 Nine months or greater, but less than twelve months 1 1 - 2 Twelve months or greater 364 167 10 62 Total $ 539 $ 220 $ 12 83 (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 recognized in OCI, on AFS securities decreased by $ 548 million for the six months ended June 30 , 2017 . As discussed further below, we believe the unrealized loss position as of June 30 , 2017 , 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 these 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 June 30 , 2017 , 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 June 30 , 2017 , 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 temporarily-impaired security. As of June 30 , 2017 , the unrealized losses associated with our mortgage-backed securities ( “ MBS ” ) and ABS were attributable primarily to widening credit spreads and rising interest rates since purchase . 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 industr y analyst reports and forecasts 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 of each temporarily-impaired security. As of June 30 , 2017 , 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 issuers based upon credit performance and investment ratings and determined that we expected to recover the entire amortized cost of each temporarily-impaired 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 Three For the Six Months Ended Months Ended June 30, June 30, 2017 2016 2017 2016 Balance as of beginning-of-period $ 393 $ 413 $ 430 $ 382 Increases attributable to: Credit losses on securities for which an OTTI was not previously recognized 4 26 5 61 Credit losses on securities for which an OTTI was previously recognized - 2 3 7 Decreases attributable to: Securities sold, paid down or matured (7 ) (10 ) (48 ) (19 ) Balance as of end-of-period $ 390 $ 431 $ 390 $ 431 During the six months ended June 30 , 2017 and 2016 , 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 June 30, 2017 Net Unrealized OTTI in Amortized Gain/(Loss) Fair Credit Cost Position Value Losses Corporate bonds $ 22 $ 6 $ 28 $ 43 ABS 199 20 219 112 RMBS 292 18 310 188 CMBS 18 2 20 39 CLOs 11 4 15 5 State and municipal bonds - - - 3 Total $ 542 $ 50 $ 592 $ 390 As of December 31, 2016 Net Unrealized OTTI in Amortized Gain/(Loss) Fair Credit Cost Position Value Losses Corporate bonds $ 80 $ 5 $ 85 $ 77 ABS 212 13 225 112 RMBS 332 6 338 194 CMBS 29 1 30 39 CLOs 11 4 15 5 State and municipal bonds 2 - 2 3 Total $ 666 $ 29 $ 695 $ 430 Mortgage Loans on Real Estate See Note 1 in our 2016 Form 10-K for information regarding our accounting policy relating to 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 and Texas, which accounted for 20% and 11% , respectively , of mortgage loans on real estate as of June 30 , 2017, and December 31, 2016. The following provides the current and past due composition of our mortgage loans on real estate (in millions): As of As of June 30, December 31, 2017 2016 Current $ 10,023 $ 9,888 60 to 90 days past due - - Greater than 90 days past due 2 2 Valuation allowance associated with impaired mortgage loans on real estate (2 ) (2 ) Unamortized premium (discount) - 1 Total carrying value $ 10,023 $ 9,889 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 As of June 30, December 31, 2017 2016 Number of impaired mortgage loans on real estate 2 2 Principal balance of impaired mortgage loans on real estate $ 7 $ 7 Valuation allowance associated with impaired mortgage loans on real estate (2 ) (2 ) Carrying value of impaired mortgage loans on real estate $ 5 $ 5 The changes in the valuation allowance associated with impaired mortgage loans on real estate (in millions) were as follows: For the Three For the Six Months Ended Months Ended June 30, June 30, 2017 2016 2017 2016 Balance as of beginning-of-period $ 2 $ 2 $ 2 $ 2 Additions - - - - Charge-offs, net of recoveries - - - - Balance as of end-of-period $ 2 $ 2 $ 2 $ 2 Additional information related to impaired mortgage loans on real estate (in millions) was as follows: For the Three For the Six Months Ended Months Ended June 30, June 30, 2017 2016 2017 2016 Average carrying value for impaired mortgage loans on real estate $ 5 $ 6 $ 5 $ 6 Interest income recognized on impaired mortgage loans on real estate - - - - Interest income collected on impaired mortgage loans on real estate - - - - As described in Note 1 in our 2016 Form 10-K, 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 June 30, 2017 As of December 31, 2016 Debt- Debt- Service Service Carrying % of Coverage Carrying % of Coverage Loan-to-Value Ratio Value Total Ratio Value Total Ratio Less than 65% $ 8,993 89.7% 2.22 $ 8,709 88.0% 2.16 65% to 74% 892 8.9% 1.89 1,009 10.2% 1.87 75% to 100% 133 1.3% 0.82 166 1.7% 0.82 Greater than 100% 5 0.1% 1.04 5 0.1% 1.04 Total mortgage loans on real estate $ 10,023 100.0% $ 9,889 100.0% Alternative Investments As of June 30 , 2017 , and December 31, 201 6 , alternative investments included investments in 206 and 202 different partnerships, respectively, and the portfolios represented approximately 1 % of our overall invested assets. 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 Three For the Six Months Ended Months Ended June 30, June 30, 2017 2016 2017 2016 Fixed maturity AFS securities: (1) Gross gains $ 3 $ 7 $ 11 $ 61 Gross losses (13 ) (65 ) (25 ) (163 ) Equity AFS securities: Gross gains - 2 1 2 Gross losses - (1 ) - (1 ) Gain (loss) on other investments (2 ) (3 ) (5 ) (63 ) Associated amortization of DAC, VOBA, DSI and DFEL and changes in other contract holder funds (6 ) (5 ) (13 ) (8 ) Total realized gain (loss) related to certain investments, pre-tax $ (18 ) $ (65 ) $ (31 ) $ (172 ) (1) These amounts are represented net of related fair value hedging activity. See Note 5 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 Three For the Six Months Ended Months Ended June 30, June 30, 2017 2016 2017 2016 OTTI Recognized in Net Income (Loss) Fixed maturity securities: Corporate bonds $ (4 ) $ (26 ) $ (5 ) $ (62 ) ABS - (1 ) (1 ) (3 ) RMBS - (1 ) (1 ) (3 ) State and municipal bonds - - (1 ) - Total fixed maturity securities (4 ) (28 ) (8 ) (68 ) Equity securities - (1 ) - (1 ) Gross OTTI recognized in net income (loss) (4 ) (29 ) (8 ) (69 ) Associated amortization of DAC, VOBA, DSI and DFEL - 1 - 5 Net OTTI recognized in net income (loss), pre-tax $ (4 ) $ (28 ) $ (8 ) $ (64 ) Portion of OTTI Recognized in OCI Gross OTTI recognized in OCI $ - $ 10 $ - $ 36 Change in DAC, VOBA, DSI and DFEL - (2 ) - (8 ) Net portion of OTTI recognized in OCI, pre-tax $ - $ 8 $ - $ 28 Determination of Credit Losses on Corporate Bonds and ABS As of June 30 , 2017 , and December 31, 2016 , 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 credit risk. As of June 30 , 2017 , and December 31, 2016 , 96% and 95% , respectively, of the fair value of our corporate bond portfolio was rated investment grade. As of June 30 , 2017 , and December 31, 2016 , the portion of our corporate bond portfolio rated below investment grade had an amortized cost of $ 3.5 billion and $3.8 billion, respectively, and a fair value of $ 3.4 billion and $ 3.7 billion, respectively. As of June 30 , 2017, and December 31, 201 6 , 96% of the fair value of our ABS portfolio was rated investment grade. As of June 30, 2017, and December 31, 2016 , the portion of our ABS portfolio rated below investment grade had an amortized cost of $ 86 million and $ 91 million, respectively, and a fair value of $73 million and $ 75 million, respectively. Based upon the analysis discussed above, we believe as of June 30 , 2017, and December 31, 2016 , that we would recover the amortized cost of each fixed maturity security. Determination of Credit Losses on MBS As of June 30 , 2017, and December 31, 2016 , 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 June 30, 2017 As of December 31, 2016 Carrying Fair Carrying Fair Value Value Value Value Collateral payable for derivative investments (1) $ 1,054 $ 1,054 $ 894 $ 894 Securities pledged under securities lending agreements (2) 208 200 216 209 Securities pledged under repurchase agreements (3) 540 587 535 589 Investments pledged for Federal Home Loan Bank of Indianapolis (“FHLBI”) (4) 3,150 4,654 3,350 4,947 Total payables for collateral on investments $ 4,952 $ 6,495 $ 4,995 $ 6,639 (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 5 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 Six Months Ended June 30, 2017 2016 Collateral payable for derivative investments $ 160 $ 1,617 Securities pledged under securities lending agreements (8 ) 7 Securities pledged under repurchase agreements 5 16 Investments pledged for FHLBI (200 ) - Total increase (decrease) in payables for collateral on investments $ (43 ) $ 1,640 We have elected not to offset our repurchase agreements and securities lending transactions in our financial statements. The remaining contractual maturities of repurchase agreements and securities lending transactions accounted for as secured borrowings were as follows: As of June 30, 2017 Overnight and Continuous Up to 30 Days 30 - 90 Days Greater Than 90 Days Total Repurchase Agreements Corporate bonds $ - $ 100 $ 290 $ 150 $ 540 Total - 100 290 150 540 Securities Lending Corporate bonds 208 - - - 208 Total 208 - - - 208 Total gross secured borrowings $ 208 $ 100 $ 290 $ 150 $ 748 As of December 31, 2016 Overnight and Continuous Up to 30 Days 30 - 90 Days Greater Than 90 Days Total Repurchase Agreements Corporate bonds $ - $ - $ 389 $ 146 $ 535 Total - - 389 146 535 Securities Lending Corporate bonds 212 - - - 212 Foreign government bonds 4 - - - 4 Total 216 - - - 216 Total gross secured borrowings $ 216 $ - $ 389 $ 146 $ 751 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. As of June 30 , 2017, the fair value of all collateral received that we are permitted to sell or re-pledge was $ 177 million . As of June 30 , 2017, we have re-pledged $80 million of this collateral to cover initial margin on certain derivative investments . Investment Commitments As of June 30, 2017 , our investment commitments were $ 1.7 billion, which included $ 794 million of LPs, $ 443 million of mortgage loans on real estate and $ 466 million of private placement securities. Concentrations of Financial Instruments As of June 30 , 2017 , and December 31, 2016 , 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 $ 1.4 billion and $ 1.5 billion, respectively, or 1% of our invested assets portfolio, and our investments in securities issued by Federal National Mortgage Association with a fair value of $ 1.0 billion and $1.1 billion, respectively, or 1 % of our invested assets portfolio. These concentrations include both AFS and trading securities. As of June 30 , 2017, and December 31, 2016 , our most significant investments in one industry were our investment securities in the consumer non-cyclical industry with a fair value of $ 14.7 billion and $ 13.7 billion, respectively, or 13% of our invested assets portfolio, and our investment securities in the utilities industry with a fair value of $13.8 billion and $ 13.2 billion, respectively , or 12% of our invested assets portfolio. These concentrations include both AFS and trading securities . |
Derivative Instruments
Derivative Instruments | 6 Months Ended |
Jun. 30, 2017 | |
Derivative Instruments [Abstract] | |
Derivative Instruments | 5. 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. See Note 1 in our 2016 Form 10-K for a detailed discussion of the accounting treatment for derivative instruments. See Note 6 in our 2016 Form 10-K for a detailed discussion of our derivative instruments and use of them in our overall risk management strategy, which information is incorporated herein by reference. See Note 12 for additional disclosures related to the fair value of our derivative instruments and Note 3 for derivative instruments related to our consolidated VIEs. We have derivati ve instruments with off-balance- sheet risks whose notional or contract amounts exceed the related credit exposure. Outstanding derivati ve instruments with off-balance- sheet risks (in millions) were as follows: As of June 30, 2017 As of December 31, 2016 Notional Fair Value Notional Fair Value Amounts Asset Liability Amounts Asset Liability Qualifying Hedges Cash flow hedges: Interest rate contracts (1) $ 3,607 $ 47 $ 92 $ 3,552 $ 68 $ 122 Foreign currency contracts (1) 1,512 116 21 1,177 153 10 Total cash flow hedges 5,119 163 113 4,729 221 132 Fair value hedges: Interest rate contracts (1) 1,477 263 182 1,512 258 182 Non-Qualifying Hedges Interest rate contracts (1) 78,622 766 151 70,290 985 701 Foreign currency contracts (1) 8 - - 14 - - Equity market contracts (1) 29,704 529 390 28,315 541 616 Credit contracts (1) 63 - - 66 - - Embedded derivatives: Guaranteed living benefit ("GLB") (2) - 298 - - - - GLB (3) - - - - - 371 Reinsurance related (4) - - 53 - - 53 Indexed annuity and IUL contracts (5) - - 1,268 - - 1,139 Total derivative instruments $ 114,993 $ 2,019 $ 2,157 $ 104,926 $ 2,005 $ 3,194 (1) Reported in derivative investments and other liabilities on our Consolidated Balance Sheets. (2) Reported in other assets on our Consolidated Balance Sheets. (3) Reported in other liabilities on our Consolidated Balance Sheets. (4) Reported in reinsurance related embedded derivatives on our Consolidated Balance Sheets. (5) Reported in future contract benefits on our Consolidated Balance Sheets. Beginning in the first quarter 2017, consistent with changes enacted by the Chicago Mercantile Exchange (“CME”), the Company offset the variation margin payments with the derivative balances that are cleared through CME. The maturity of the notional amounts of derivative instruments (in millions) was as follows: Remaining Life as of June 30, 2017 Less Than 1 - 5 6 - 10 11 - 30 Over 30 1 Year Years Years Years Years Total Interest rate contracts (1) $ 15,024 $ 22,369 $ 30,174 $ 14,926 $ 1,213 $ 83,706 Foreign currency contracts (2) 19 151 378 962 10 1,520 Equity market contracts 17,594 9,784 869 15 1,442 29,704 Credit contracts - 63 - - - 63 Total derivative instruments with notional amounts $ 32,637 $ 32,367 $ 31,421 $ 15,903 $ 2,665 $ 114,993 (1) As of June 30, 2017 , 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 June 30, 2017 , the latest maturity date for which we were hedging our exposure to the variability in future cash flows for these instruments was September 2049 . The change in our unrealized gain (loss) on derivative instruments in accumulated OCI (“AOCI”) (in millions) was as follows: For the Six Months Ended June 30, 2017 2016 Unrealized Gain (Loss) on Derivative Instruments Balance as of beginning-of-year $ 49 $ 132 Other comprehensive income (loss): Unrealized holding gains (losses) arising during the period: Cash flow hedges: Interest rate contracts 1 (240 ) Foreign currency contracts 45 32 Change in foreign currency exchange rate adjustment (75 ) 35 Change in DAC, VOBA, DSI and DFEL (8 ) (6 ) Income tax benefit (expense) 13 62 Less: Reclassification adjustment for gains (losses) included in net income (loss): Cash flow hedges: Interest rate contracts (1) 2 4 Interest rate contracts (2) (9 ) (2 ) Foreign currency contracts (1) 9 3 Foreign currency contracts (3) 5 4 Associated amortization of DAC, VOBA, DSI and DFEL (2 ) (1 ) Income tax benefit (expense) (2 ) (3 ) Balance as of end-of-period $ 22 $ 10 (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). (3) The OCI offset is reported within realized gain (loss) 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 Three For the Six Months Ended Months Ended June 30, June 30, 2017 2016 2017 2016 Qualifying Hedges Cash flow hedges: Interest rate contracts (1) $ 1 $ 3 $ 2 $ 4 Interest rate contracts (2) (5 ) (2 ) (9 ) (2 ) Foreign currency contracts (1) 4 1 9 3 Foreign currency contracts (3) - - 5 4 Total cash flow hedges - 2 7 9 Fair value hedges: Interest rate contracts (1) (6 ) (7 ) (13 ) (15 ) Interest rate contracts (2) 7 8 15 16 Interest rate contracts (3) (9 ) (32 ) - (86 ) Total fair value hedges (8 ) (31 ) 2 (85 ) Non-Qualifying Hedges Interest rate contracts (3) 193 614 143 1,590 Foreign currency contracts (3) (2 ) (7 ) 1 (3 ) Equity market contracts (3) (289 ) (252 ) (817 ) (582 ) Equity market contracts (4) 5 3 14 2 Credit contracts (3) - (4 ) - (7 ) Embedded derivatives: GLB (3) 72 (542 ) 669 (1,505 ) Reinsurance related (3) (3 ) (23 ) - (47 ) Indexed annuity and IUL contracts (3) (64 ) (19 ) (184 ) (12 ) Total derivative instruments $ (96 ) $ (259 ) $ (165 ) $ (640 ) (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 Three For the Six Months Ended Months Ended June 30, June 30, 2017 2016 2017 2016 Offset to net investment income $ 5 $ 4 $ 11 $ 7 Offset to realized gain (loss) - - 5 4 Offset to interest and debt expense (5 ) (2 ) (9 ) (2 ) As of June 30, 2017 , $ 6 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 six months ended June 30, 2017 and 2016 , 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 s for which we are the seller (dollars in millions) was as follows: As of June 30, 2017 Credit Reason Nature Rating of Number Maximum for of Underlying of Fair Potential Credit Contract Type Maturity Entering Recourse Obligation (1) Instruments Value (2) Payout Basket credit default swaps 6/20/2022 (3) (4) BBB+ 1 $ 1 $ 63 1 $ 1 $ 63 As of December 31, 2016 Credit Reason Nature Rating of Number Maximum for of Underlying of Fair Potential Credit Contract Type Maturity Entering Recourse Obligation (1) Instruments Value (2) Payout Single name credit default swaps 3/20/2017 (5) (6) (4) BBB+ 2 $ - $ 40 2 $ - $ 40 (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) Credit default swaps were entered into in order to hedge the liability exposure on certain variable annuity products. (4) Sellers do not have the right to demand indemnification or compensation from third parties in case of a loss (payment) on the contract. (5) These credit default swaps were sold to a counterparty of the consolidated VIEs discussed in Note 4 in our 2016 Form 10-K. (6) Credit default swaps were entered into in order to generate income by providing default protection in return for a quarterly payment. Details underlying the associated collateral of our credit default sw aps for which we are the seller if credit risk - related contingent features were triggered (in millions) were as follows: As of As of June 30, December 31, 2017 2016 Maximum potential payout $ 63 $ 40 Less: Counterparty thresholds - - Maximum collateral potentially required to post $ 63 $ 40 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 collateral if the market value was less than zero. As of June 30, 2017 the market value was $ 1 million . Credit Risk We are exposed to credit losses in the event of non-performance by our counterparties on various derivative contracts and reflect assumptions regarding the credit or non-performance risk (“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 June 30, 2017 , 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 June 30, 2017 , our exposure was $ 4 million . The amounts recognized (in mi llions) 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 June 30, 2017 As of December 31, 2016 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- $ 96 $ - $ 53 $ (32 ) A+ 39 (235 ) 10 (217 ) A 579 (287 ) 466 (381 ) A- 39 - 67 - BBB+ 301 (5 ) 298 - $ 1,054 $ (527 ) $ 894 $ (630 ) Balance Sheet Offsetting Information related to the effects of offsetting on our Consolidated Balance Sheets (in millions) was as follows: As of June 30, 2017 Embedded Derivative Derivative Instruments Instruments Total Financial Assets Gross amount of recognized assets $ 1,600 $ 298 $ 1,898 Gross amounts offset (546 ) - (546 ) Net amount of assets 1,054 298 1,352 Gross amounts not offset: Cash collateral (1,054 ) - (1,054 ) Net amount $ - $ 298 $ 298 Financial Liabilities Gross amount of recognized liabilities $ 611 $ 1,321 $ 1,932 Gross amounts offset (121 ) - (121 ) Net amount of liabilities 490 1,321 1,811 Gross amounts not offset: Cash collateral (527 ) - (527 ) Net amount $ (37 ) $ 1,321 $ 1,284 As of December 31, 2016 Embedded Derivative Derivative Instruments Instruments Total Financial Assets Gross amount of recognized assets $ 1,470 $ - $ 1,470 Gross amounts offset (543 ) - (543 ) Net amount of assets 927 - 927 Gross amounts not offset: Cash collateral (894 ) - (894 ) Net amount $ 33 $ - $ 33 Financial Liabilities Gross amount of recognized liabilities $ 1,089 $ 1,563 $ 2,652 Gross amounts offset (536 ) - (536 ) Net amount of liabilities 553 1,563 2,116 Gross amounts not offset: Cash collateral (630 ) - (630 ) Net amount $ (77 ) $ 1,563 $ 1,486 |
Federal Income Taxes
Federal Income Taxes | 6 Months Ended |
Jun. 30, 2017 | |
Federal Income Taxes [Abstract] | |
Federal Income Taxes | 6 . Federal Income Taxes The effective tax rate is the ratio of tax expense over pre-tax income (loss). The effective tax rate was 23% and 16% for the three and six months ended June 30, 2017, respectively. The effective tax rate was 21% and 18% for the three and six months ended June 30, 2016, respectively. The effective tax rate was significantly lower than the prevailing corporate federal income tax rate. Differences in the effective rates and the U.S. statutory rate of 35 % were the result of the separate accounts dividends-received deduction, certain tax preferred investment income , foreign tax credits a nd other tax preference items. |
Guaranteed Benefit Features
Guaranteed Benefit Features | 6 Months Ended |
Jun. 30, 2017 | |
Guaranteed Benefit Features [Abstract] | |
Guaranteed Benefit Features | 7. Guaranteed Benefit Features Information on the guaranteed death benefit (“GDB”) features outstanding (dollars in millions) was as follows: As of As of June 30, December 31, 2017 (1) 2016 (1) Return of Net Deposits Total account value $ 92,182 $ 87,707 Net amount at risk (2) 179 824 Average attained age of contract holders 64 years 63 years Minimum Return Total account value $ 107 $ 105 Net amount at risk (2) 19 22 Average attained age of contract holders 76 years 75 years Guaranteed minimum return 5% 5% Anniversary Contract Value Total account value $ 25,666 $ 24,605 Net amount at risk (2) 482 782 Average attained age of contract holders 70 years 69 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 Six Months Ended June 30, 2017 2016 Balance as of beginning-of-year $ 110 $ 115 Changes in reserves (2 ) 22 Benefits paid (11 ) (24 ) Balance as of end-of-period $ 97 $ 113 Variable Annuity Contracts Account balances of variable annuity contracts, including those with guarantees, (in millions) were invested in separate account investment options as follows: As of As of June 30, December 31, 2017 2016 Asset Type Domestic equity $ 55,453 $ 52,244 International equity 18,610 17,396 Bonds 27,829 27,532 Money market 13,327 12,010 Total $ 115,219 $ 109,182 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 34% and 35% of total life in surance in-force reserves as of June 3 0 , 2017, and December 31, 2016 , respectively. UL and VUL products with secondary guarantees represented 28% and 27% of total sales for the three and six months ended June 3 0 , 2017, respectively , compared to 33% and 31% for the corresponding periods in 2016 . |
Contingencies and Commitments
Contingencies and Commitments | 6 Months Ended |
Jun. 30, 2017 | |
Contingencies and Commitments [Abstract] | |
Contingencies and Commitments | 8. Contingencies and Commitments 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 is 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 verdicts obtained 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 June 30, 2017 . 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 June 3 0 , 201 7 , we estimate the aggregate range of reasonably possible losses to be up to approximately $ 50 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 . See Note 13 in our 201 6 Form 10-K and Note 8 in our Form 10-Q for the quarter ended March 31, 2017, for additional discussion of commitments and contingencies, which information is incorporated herein by reference. |
Shares and Stockholders' Equity
Shares and Stockholders' Equity | 6 Months Ended |
Jun. 30, 2017 | |
Shares and Stockholders' Equity [Abstract] | |
Shares and Stockholders' Equity | 9. Shares and Stockholders’ Equity Common Shares The changes in our common stock (number of shares) were as follows: For the Three For the Six Months Ended Months Ended June 30, June 30, 2017 2016 2017 2016 Common Stock Balance as of beginning-of-period 224,888,259 239,005,252 226,335,105 243,835,893 Stock issued for exercise of warrants 289,636 13,335 334,930 38,148 Stock compensation/issued for benefit plans 89,455 9,537 1,461,286 670,142 Retirement/cancellation of shares (3,030,088 ) (6,243,433 ) (5,894,059 ) (11,759,492 ) Balance as of end-of-period 222,237,262 232,784,691 222,237,262 232,784,691 Common Stock as of End-of-Period Basic basis 222,237,262 232,784,691 222,237,262 232,784,691 Diluted basis (1) 226,044,165 236,179,176 226,044,165 236,179,176 (1) Effective October 1, 2016, we early adopted ASU 2016-09, Improvements to Employee Share-Based Payment Accounting. We have updated certain previously reported interim results and metrics as of January 1, 2016, in accordance with th is guidance. For more information, see Note 1 – Earnings Per Share in our 2016 Form 10-K. Our common stock is 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 Three For the Six Months Ended Months Ended June 30, June 30, 2017 2016 2017 2016 Weighted-average shares, as used in basic calculation 223,555,299 236,463,183 224,581,848 239,069,774 Shares to cover exercise of outstanding warrants 694,403 1,098,405 858,916 1,100,176 Shares to cover non-vested stock (1) 1,426,550 872,481 1,551,173 967,816 Average stock options outstanding during the period (1) 2,339,558 2,090,988 2,510,344 1,948,817 Assumed acquisition of shares with assumed proceeds from exercising outstanding warrants (105,156 ) (265,103 ) (127,696 ) (278,312 ) Assumed acquisition of shares with assumed proceeds and benefits from exercising stock options (at average market price for the period) (1) (1,464,321 ) (1,429,907 ) (1,541,738 ) (1,364,709 ) Shares repurchasable from measured but unrecognized stock option expense (1) (59,959 ) (34,492 ) (68,519 ) (17,797 ) Average deferred compensation shares 927,508 1,101,384 938,661 1,070,657 Weighted-average shares, as used in diluted calculation (1) 227,313,882 239,896,939 228,702,989 242,496,422 (1) Effective October 1, 2016, we early adopted ASU 2016-09, Improvements to Employee Share-Based Payment Accounting. We have updated certain previously reported interim results and metrics as of January 1, 2016, in accordance with th is guidance. For more information, see Note 1 – Earnings Per Share in our 2016 Form 10-K. 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 earnings per share (“EPS”), such options will be shown in the table above. 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 three and six months ended June 30, 2017 and 2016, 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 $(1) million for the three and six months ended June 30, 2017, respectively, and less than $1 million and $7 million for the three and six months ended June 30, 2016, respectively . AOCI The following summarizes the components and changes in AOCI (in millions): For the Six Months Ended June 30, 2017 2016 Unrealized Gain (Loss) on AFS Securities Balance as of beginning-of-year $ 1,784 $ 991 Unrealized holding gains (losses) arising during the period 2,058 5,394 Change in foreign currency exchange rate adjustment 69 (33 ) Change in DAC, VOBA, DSI, future contract benefits and other contract holder funds (356 ) (1,620 ) Income tax benefit (expense) (626 ) (1,321 ) Less: Reclassification adjustment for gains (losses) included in net income (loss) (13 ) (101 ) Associated amortization of DAC, VOBA, DSI and DFEL (11 ) (7 ) Income tax benefit (expense) 8 38 Balance as of end-of-period $ 2,945 $ 3,481 Unrealized OTTI on AFS Securities Balance as of beginning-of-year $ 25 $ 26 (Increases) attributable to: Gross OTTI recognized in OCI during the period - (36 ) Change in DAC, VOBA, DSI and DFEL - 8 Income tax benefit (expense) - 10 Decreases attributable to: Changes in fair value, sales, maturities or other settlements of AFS securities 21 5 Change in DAC, VOBA, DSI and DFEL (4 ) (1 ) Income tax benefit (expense) (6 ) (2 ) Balance as of end-of-period $ 36 $ 10 Unrealized Gain (Loss) on Derivative Instruments Balance as of beginning-of-year $ 49 $ 132 Unrealized holding gains (losses) arising during the period 46 (208 ) Change in foreign currency exchange rate adjustment (75 ) 35 Change in DAC, VOBA, DSI and DFEL (8 ) (6 ) Income tax benefit (expense) 13 62 Less: Reclassification adjustment for gains (losses) included in net income (loss) 7 9 Associated amortization of DAC, VOBA, DSI and DFEL (2 ) (1 ) Income tax benefit (expense) (2 ) (3 ) Balance as of end-of-period $ 22 $ 10 Foreign Currency Translation Adjustment Balance as of beginning-of-year $ (27 ) $ (5 ) Foreign currency translation adjustment arising during the period 7 (13 ) Balance as of end-of-period $ (20 ) $ (18 ) Funded Status of Employee Benefit Plans Balance as of beginning-of-year $ (265 ) $ (299 ) Adjustment arising during the period (7 ) 11 Balance as of end-of-period $ (272 ) $ (288 ) 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 Six Months Ended June 30, 2017 2016 Unrealized Gain (Loss) on AFS Securities Gross reclassification $ (13 ) $ (101 ) Total realized gain (loss) Associated amortization of DAC, VOBA, DSI and DFEL (11 ) (7 ) Total realized gain (loss) Reclassification before income Income (loss) from continuing tax benefit (expense) (24 ) (108 ) operations before taxes Income tax benefit (expense) 8 38 Federal income tax expense (benefit) Reclassification, net of income tax $ (16 ) $ (70 ) Net income (loss) Unrealized OTTI on AFS Securities Gross reclassification $ (1 ) $ 1 Total realized gain (loss) Change in DAC, VOBA, DSI and DFEL - - Total realized gain (loss) Reclassification before income Income (loss) from continuing tax benefit (expense) (1 ) 1 operations before taxes Income tax benefit (expense) - - Federal income tax expense (benefit) Reclassification, net of income tax $ (1 ) $ 1 Net income (loss) Unrealized Gain (Loss) on Derivative Instruments Gross reclassifications: Interest rate contracts $ 2 $ 4 Net investment income Interest rate contracts (9 ) (2 ) Interest and debt expense Foreign currency contracts 9 7 Net investment income Foreign currency contracts 5 - Total realized gain (loss) Total gross reclassifications 7 9 Associated amortization of DAC, VOBA, DSI and DFEL (2 ) (1 ) Commissions and other expenses Reclassifications before income Income (loss) from continuing tax benefit (expense) 5 8 operations before taxes Income tax benefit (expense) (2 ) (3 ) Federal income tax expense (benefit) Reclassifications, net of income tax $ 3 $ 5 Net income (loss) |
Realized Gain (Loss)
Realized Gain (Loss) | 6 Months Ended |
Jun. 30, 2017 | |
Realized Gain (Loss) [Abstract] | |
Realized Gain (Loss) | 10. Realized Gain (Loss) Details underlying realized gain (loss) (in millions) reported on our Consolidated Statements of Comprehensive Income (Loss) were as follows: For the Three For the Six Months Ended Months Ended June 30, June 30, 2017 2016 2017 2016 Total realized gain (loss) related to certain investments (1) $ (18 ) $ (65 ) $ (31 ) $ (172 ) Realized gain (loss) on the mark-to-market on certain instruments (2) (5 ) (8 ) 5 - Indexed annuity and IUL contracts net derivatives results: (3) Gross gain (loss) (7 ) (9 ) (17 ) (33 ) Associated amortization of DAC, VOBA, DSI and DFEL 2 4 1 6 Variable annuity net derivatives results: (4) Gross gain (loss) 23 37 (5 ) 48 Associated amortization of DAC, VOBA, DSI and DFEL (5 ) (4 ) (2 ) (8 ) Total realized gain (loss) $ (10 ) $ (45 ) $ (49 ) $ (159 ) (1) See “Realized Gain (Loss) Related to Certain Investments” section in Note 4 . (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 Index ® 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 GLB and GDB riders, including the cost of purchasing the hedging instruments. |
Stock-Based Compensation Plans
Stock-Based Compensation Plans | 6 Months Ended |
Jun. 30, 2017 | |
Stock-Based Compensation Plans [Abstract] | |
Stock-Based Compensation Plans | 11 . Stock-Based Compensation Plans We sponsor stock-based compensation plans for our employees and directors and for the employees and agents of our subsidiaries that provide for the grant of stock options, performance shares (performance-vested shares as opposed to service-vested shares), stock a ppreciation rights (“SARs”), restricted stock units ( “ RSUs ” ) and deferred stock units (“DSUs”) . We issue new shares to satisfy option exercises. LNC stock-based awards granted were as follows: For the For the Three Six Months Months Ended Ended June 30, June 30, 2017 2017 10-year LNC stock options 15,270 407,637 Performance shares 5,126 154,351 RSUs 37,365 435,865 Non-employee: SARs - 26,494 Agent stock options - 102,638 Director DSUs 7,059 14,534 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value of Financial Instruments [Abstract] | |
Fair Value of Financial Instruments | 12. Fair Value of Financial Instruments The carrying values and estimated fair values of our financial instruments (in millions) were as follows: As of June 30, 2017 As of December 31, 2016 Carrying Fair Carrying Fair Value Value Value Value Assets AFS securities: Fixed maturity securities $ 93,014 $ 93,014 $ 89,013 $ 89,013 VIEs’ fixed maturity securities - - 200 200 Equity securities 275 275 275 275 Trading securities 1,678 1,678 1,712 1,712 Mortgage loans on real estate 10,023 10,157 9,889 9,853 Derivative investments (1) 1,054 1,054 927 927 Other investments 2,156 2,156 2,230 2,230 Cash and invested cash 1,978 1,978 2,722 2,722 Other assets: GLB direct embedded derivatives (2) 298 298 - - GLB ceded embedded derivatives 85 85 203 203 Separate account assets 135,825 135,825 128,397 128,397 Liabilities Future contract benefits – indexed annuity and IUL contracts embedded derivatives (1,268 ) (1,268 ) (1,139 ) (1,139 ) Other contract holder funds: Remaining guaranteed interest and similar contracts (625 ) (625 ) (629 ) (629 ) Account values of certain investment contracts (31,982 ) (36,201 ) (31,516 ) (35,647 ) Short-term debt (450 ) (457 ) - - Long-term debt (4,901 ) (5,485 ) (5,345 ) (5,679 ) Reinsurance related embedded derivatives (53 ) (53 ) (53 ) (53 ) Other liabilities: Derivative liabilities (1) (169 ) (169 ) (553 ) (553 ) GLB direct embedded derivatives (2) - - (371 ) (371 ) (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) Portions of our GLB direct embedded derivatives are ceded to third-party reinsurance counterparties. Refer to Note 5 for additional detail. 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 consist ent with those remaining for the contracts being valued. As of June 30, 2017 , and December 31 , 2016 , the r emaining 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 valu e on a nonrecurring basis as of June 30, 2017 , o r December 31, 201 6 , 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 in “ Summary of Significant Accounting Policies ” in Note 1 of our 20 16 Fo rm 10-K: As of June 30, 2017 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 $ - $ 78,031 $ 2,517 $ 80,548 ABS - 1,007 43 1,050 U.S. government bonds 564 9 5 578 Foreign government bonds - 346 109 455 RMBS - 3,545 7 3,552 CMBS - 455 21 476 CLOs - 675 28 703 State and municipal bonds - 5,010 - 5,010 Hybrid and redeemable preferred securities 67 493 82 642 Equity AFS securities 13 79 183 275 Trading securities 73 1,546 59 1,678 Derivative investments (1) - 1,150 571 1,721 Other investments 150 - - 150 Cash and invested cash - 1,978 - 1,978 Other assets: GLB direct embedded derivatives - - 298 298 GLB ceded embedded derivatives - - 85 85 Separate account assets 772 135,053 - 135,825 Total assets $ 1,639 $ 229,377 $ 4,008 $ 235,024 Liabilities Future contract benefits – indexed annuity and IUL contracts embedded derivatives $ - $ - $ (1,268 ) $ (1,268 ) Long-term debt - (1,135 ) - (1,135 ) Reinsurance related embedded derivatives - (53 ) - (53 ) Other liabilities – derivative liabilities (1) - (420 ) (416 ) (836 ) Total liabilities $ - $ (1,608 ) $ (1,684 ) $ (3,292 ) As of December 31, 2016 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 $ - $ 74,659 $ 2,405 $ 77,064 ABS - 1,052 33 1,085 U.S. government bonds 408 11 - 419 Foreign government bonds - 395 111 506 RMBS - 3,611 3 3,614 CMBS - 343 7 350 CLOs - 676 68 744 State and municipal bonds - 4,627 - 4,627 Hybrid and redeemable preferred securities 60 468 76 604 VIEs’ fixed maturity securities - 200 - 200 Equity AFS securities 17 81 177 275 Trading securities 102 1,545 65 1,712 Derivative investments (1) - 1,406 599 2,005 Other investments 146 - - 146 Cash and invested cash - 2,722 - 2,722 Other assets – GLB ceded embedded derivatives - - 203 203 Separate account assets 863 127,534 - 128,397 Total assets $ 1,596 $ 219,330 $ 3,747 $ 224,673 Liabilities Future contract benefits – indexed annuity and IUL contracts embedded derivatives $ - $ - $ (1,139 ) $ (1,139 ) Long-term debt - (1,203 ) - (1,203 ) Reinsurance related embedded derivatives - (53 ) - (53 ) Other liabilities: Derivative liabilities (1) - (939 ) (692 ) (1,631 ) GLB direct embedded derivatives - - (371 ) (371 ) Total liabilities $ - $ (2,195 ) $ (2,202 ) $ (4,397 ) (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 deferred acquisition costs ( “ DAC ” ), value of business acquired ( “ VOBA ” ), deferred sales inducements ( “ DSI ” ) and deferred front-end loads ( “ 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 Three Months Ended June 30, 2017 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: (3) Fixed maturity AFS securities: Corporate bonds $ 2,403 $ 5 $ 53 $ 57 $ (1 ) $ 2,517 ABS 29 - - - 14 43 U.S. government bonds 5 - - - - 5 Foreign government bonds 110 - (1 ) - - 109 RMBS 7 - - - - 7 CMBS 44 - 1 14 (38 ) 21 CLOs 88 - - 13 (73 ) 28 State and municipal bonds 1 - - - (1 ) - Hybrid and redeemable preferred securities 79 - 8 - (5 ) 82 Equity AFS securities 182 - - 1 - 183 Trading securities 60 1 1 - (3 ) 59 Derivative investments 112 58 65 (80 ) - 155 Other assets: (5) GLB direct embedded derivatives 226 72 - - - 298 GLB ceded embedded derivatives 116 (31 ) - - - 85 Future contract benefits – indexed annuity and IUL contracts embedded derivatives (5) (1,238 ) (64 ) - 34 - (1,268 ) Total, net $ 2,224 $ 41 $ 127 $ 39 $ (107 ) $ 2,324 For the Three Months Ended June 30, 2016 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: (3) Fixed maturity AFS securities: Corporate bonds $ 2,185 $ (6 ) $ 46 $ 118 $ 82 $ 2,425 ABS 44 - - 14 4 62 U.S. government bonds - - - 10 - 10 Foreign government bonds 111 - 1 - - 112 RMBS 1 - - 15 - 16 CMBS 9 2 (1 ) (2 ) - 8 CLOs 591 - - 40 (586 ) 45 Hybrid and redeemable preferred securities 92 - (3 ) - - 89 Equity AFS securities 167 - 3 - - 170 Trading securities 74 1 (1 ) - (9 ) 65 Derivative investments 190 183 79 (29 ) - 423 Other investments (4) 2 (1 ) - - - 1 Other assets – GLB ceded embedded derivatives (5) 433 106 - - - 539 Future contract benefits – indexed annuity and IUL contracts embedded derivatives (5) (1,088 ) (19 ) - 5 - (1,102 ) Other liabilities: Credit default swaps (4) (12 ) (4 ) - - - (16 ) GLB direct embedded derivatives (5) (1,916 ) (542 ) - - - (2,458 ) Total, net $ 883 $ (280 ) $ 124 $ 171 $ (509 ) $ 389 For the Six Months Ended June 30, 2017 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: (3) Fixed maturity AFS securities: Corporate bonds $ 2,405 $ 11 $ 118 $ (147 ) $ 130 $ 2,517 ABS 33 - 1 - 9 43 U.S. government bonds - - - - 5 5 Foreign government bonds 111 - (2 ) - - 109 RMBS 3 - - 4 - 7 CMBS 7 - 1 55 (42 ) 21 CLOs 68 - - 18 (58 ) 28 State and municipal bonds - (1 ) - - 1 - Hybrid and redeemable preferred securities 76 - 11 - (5 ) 82 Equity AFS securities 177 1 (1 ) 6 - 183 Trading securities 65 2 8 (16 ) - 59 Derivative investments (93 ) (11 ) 88 171 - 155 Other assets: (5) GLB direct embedded derivatives - 298 - - - 298 GLB ceded embedded derivatives 203 (118 ) - - - 85 Future contract benefits – indexed annuity and IUL contracts embedded derivatives (5) (1,139 ) (184 ) - 55 - (1,268 ) Other liabilities – GLB direct embedded derivatives (5) (371 ) 371 - - - - Total, net $ 1,545 $ 369 $ 224 $ 146 $ 40 $ 2,324 For the Six Months Ended June 30, 2016 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: (3) Fixed maturity AFS securities: Corporate bonds $ 1,993 $ - $ 64 $ 146 $ 222 $ 2,425 ABS 45 - (1 ) 14 4 62 U.S. government bonds - - - 10 - 10 Foreign government bonds 111 - 1 - - 112 RMBS 1 - - 15 - 16 CMBS 10 2 (1 ) (3 ) - 8 CLOs 551 - 2 78 (586 ) 45 Hybrid and redeemable preferred securities 94 - (5 ) - - 89 Equity AFS securities 164 - 2 4 - 170 Trading securities 73 2 1 (1 ) (10 ) 65 Derivative investments 555 (258 ) 171 (45 ) - 423 Other investments (4) - 1 - - - 1 Other assets – GLB ceded embedded derivatives (5) 268 271 - - - 539 Future contract benefits – indexed annuity and IUL contracts embedded derivatives (5) (1,100 ) (12 ) - 10 - (1,102 ) VIEs’ liabilities – derivative instruments (5) (4 ) 4 - - - - Other liabilities: Credit default swaps (4) (9 ) (7 ) - - - (16 ) GLB direct embedded derivatives (5) (953 ) (1,505 ) - - - (2,458 ) Total, net $ 1,799 $ (1,502 ) $ 234 $ 228 $ (370 ) $ 389 (1) The changes in fair value of the interest rate swaps are offset by an adjustment to derivative investments (see Note 5). (2) Transfers into or out of Level 3 for AFS and trading securities are displayed at amortized cost as of the beginning-of-period . For AFS and trading securities, the diff erence between beginning-of-period amor tized cost and beginning-of-period fair value was included in OCI and earnings, respectively, in the prior period. (3) 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). (4) 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). (5) Gains (losses) from sales, maturities, settlements and calls 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 Three Months Ended June 30, 2017 Issuances Sales Maturities Settlements Calls Total Investments: Fixed maturity AFS securities: Corporate bonds $ 162 $ (3 ) $ (25 ) $ (64 ) $ (13 ) $ 57 CMBS 14 - - - - 14 CLOs 13 - - - - 13 Equity AFS securities 1 - - - - 1 Derivative investments 48 (29 ) (99 ) - - (80 ) Future contract benefits – indexed annuity and IUL contracts embedded derivatives (13 ) - - 47 - 34 Total, net $ 225 $ (32 ) $ (124 ) $ (17 ) $ (13 ) $ 39 For the Three Months Ended June 30, 2016 Issuances Sales Maturities Settlements Calls Total Investments: Fixed maturity AFS securities: Corporate bonds $ 172 $ (8 ) $ - $ (46 ) $ - $ 118 ABS 15 - - (1 ) - 14 U.S. government bonds - - - 10 - 10 RMBS 15 - - - - 15 CMBS - (1 ) - (1 ) - (2 ) CLOs 40 - - - - 40 Derivative investments 45 (43 ) (31 ) - - (29 ) Future contract benefits – indexed annuity and IUL contracts embedded derivatives (19 ) - - 24 - 5 Total, net $ 268 $ (52 ) $ (31 ) $ (14 ) $ - $ 171 For the Six Months Ended June 30, 2017 Issuances Sales Maturities Settlements Calls Total Investments: Fixed maturity AFS securities: Corporate bonds $ 200 $ (65 ) $ (47 ) $ (127 ) $ (108 ) $ (147 ) RMBS 4 - - - - 4 CMBS 55 - - - - 55 CLOs 18 - - - - 18 Equity AFS securities 8 (2 ) - - - 6 Trading securities 2 (17 ) - (1 ) - (16 ) Derivative investments 95 265 (189 ) - - 171 Future contract benefits – indexed annuity and IUL contracts embedded derivatives (31 ) - - 86 - 55 Total, net $ 351 $ 181 $ (236 ) $ (42 ) $ (108 ) $ 146 For the Six Months Ended June 30, 2016 Issuances Sales Maturities Settlements Calls Total Investments: Fixed maturity AFS securities: Corporate bonds $ 289 $ - $ (3 ) $ (83 ) $ (57 ) $ 146 ABS 15 - - (1 ) - 14 U.S. government bonds - - - 10 - 10 RMBS 15 - - - - 15 CMBS - (1 ) - (2 ) - (3 ) CLOs 80 - - (2 ) - 78 Equity AFS securities 4 - - - - 4 Trading securities - - - (1 ) - (1 ) Derivative investments 85 (85 ) (45 ) - - (45 ) Future contract benefits – indexed annuity and IUL contracts embedded derivatives (45 ) - - 55 - 10 Total, net $ 443 $ (86 ) $ (48 ) $ (24 ) $ (57 ) $ 228 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 Three For the Six Months Ended Months Ended June 30, June 30, 2017 2016 2017 2016 Derivative investments $ (2 ) $ 216 $ (76 ) $ (177 ) Other investments - (1 ) - 1 Embedded derivatives: Indexed annuity and IUL contracts - (1 ) (15 ) (24 ) GLB 231 (409 ) 978 (1,233 ) VIEs’ liabilities – derivative instruments - - - 4 Credit default swaps - (3 ) - (7 ) Total, net (1) $ 229 $ (198 ) $ 887 $ (1,436 ) (1) Included in realized gain (loss) 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 Three For the Three Months Ended Months Ended June 30, 2017 June 30, 2016 Transfers Transfers Transfers Transfers Into Out of Into Out of Level 3 Level 3 Total Level 3 Level 3 Total Investments: Fixed maturity AFS securities: Corporate bonds $ 1 $ (2 ) $ (1 ) $ 165 $ (83 ) $ 82 ABS 15 (1 ) 14 4 - 4 CMBS 3 (41 ) (38 ) - - - CLOs - (73 ) (73 ) - (586 ) (586 ) State and municipal bonds - (1 ) (1 ) - - - Hybrid and redeemable preferred securities - (5 ) (5 ) - - - Trading securities - (3 ) (3 ) 1 (10 ) (9 ) Total, net $ 19 $ (126 ) $ (107 ) $ 170 $ (679 ) $ (509 ) For the Six For the Six Months Ended Months Ended June 30, 2017 June 30, 2016 Transfers Transfers Transfers Transfers Into Out of Into Out of Level 3 Level 3 Total Level 3 Level 3 Total Investments: Fixed maturity AFS securities: Corporate bonds $ 161 $ (31 ) $ 130 $ 329 $ (107 ) $ 222 ABS 15 (6 ) 9 4 - 4 U.S. government bonds 5 - 5 - - - CMBS 3 (45 ) (42 ) - - - CLOs 30 (88 ) (58 ) - (586 ) (586 ) State and municipal bonds 2 (1 ) 1 - - - Hybrid and redeemable preferred securities - (5 ) (5 ) - - - Trading securities 3 (3 ) - 1 (11 ) (10 ) Total, net $ 219 $ (179 ) $ 40 $ 334 $ (704 ) $ (370 ) 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 six months ended June 30, 2017 and 201 6 , transfers in and out of Level 3 were attributable primarily to the securities’ observable market information no longer being available or becoming available. 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 Le vel 2 will result. For the six months ended June 30, 2017 and 2016, the transfers between Levels 1 and 2 of the fair value hierarchy were less than $1 million for our financial instruments carried at fa ir value. The following summarizes the fair value ( in millions), valuation techniques and significant unobservable inputs of the Level 3 fair value measurements as of June 30, 2017 : Fair Valuation Significant Assumption or Value Technique Unobservable Inputs Input Ranges Assets Investments: Fixed maturity AFS and trading securities: Corporate bonds $ 1,885 Discounted cash flow Liquidity/duration adjustment (1) 0.7 % - 41.9 % ABS 25 Discounted cash flow Liquidity/duration adjustment (1) 3.0 % - 3.0 % Foreign government bonds 78 Discounted cash flow Liquidity/duration adjustment (1) 1.8 % - 3.6 % Hybrid and redeemable preferred securities 4 Discounted cash flow Liquidity/duration adjustment (1) 1.9 % - 1.9 % Equity AFS securities 25 Discounted cash flow Liquidity/duration adjustment (1) 4.5 % - 5.0 % Other assets – GLB direct and ceded embedded derivatives 383 Discounted cash flow Long-term lapse rate (2) 1 % - 30 % Utilization of guaranteed withdrawals (3) 85 % - 100 % Claims utilization factor (4) 60 % - 100 % Premiums utilization factor (4) 80 % - 115 % NPR (5) 0.01 % - 0.33 % Mortality rate (6) (8) Volatility (7) 1 % - 29 % Liabilities Future contract benefits – indexed annuity and IUL contracts embedded derivatives $ (1,268 ) Discounted cash flow Lapse rate (2) 1 % - 9 % Mortality rate (6) (8) (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 embedded derivatives – Assuming our GLB direct embedded derivative is 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 guaranteed withdrawal or volatility inputs would result in an increase in the fair value measurement. Assuming our GLB ceded embedded derivative is in an asset position, the fair value measurement would move in the opposite direction from the GLB direct embedded derivative. 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 reasonable ness of our valuation techniques or models and make adjustments as necessary. For more information, see “ Summary of Significant Accounting Policies ” in Note 1 of our 2 016 Form 10-K . |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2017 | |
Segment Information [Abstract] | |
Segment Information | 13 . 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. See Note 2 1 of our 2016 Form 10-K for a brief description of these segments and Other Operations. 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 reserve 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 Three For the Six Months Ended Months Ended June 30, June 30, 2017 2016 2017 2016 Revenues Operating revenues: Annuities $ 1,076 $ 983 $ 2,138 $ 2,022 Retirement Plan Services 290 270 571 537 Life Insurance 1,655 1,538 3,260 3,016 Group Protection 541 525 1,082 1,059 Other Operations 67 79 155 161 Excluded realized gain (loss), pre-tax (52 ) (89 ) (132 ) (245 ) Amortization of deferred gain arising from reserve changes on business sold through reinsurance, pre-tax - 1 1 1 Amortization of DFEL associated with benefit ratio unlocking, pre-tax - - 2 - Total revenues $ 3,577 $ 3,307 $ 7,077 $ 6,551 For the Three For the Six Months Ended Months Ended June 30, June 30, 2017 2016 2017 2016 Net Income (Loss) Income (loss) from operations: Annuities $ 251 $ 235 $ 532 $ 453 Retirement Plan Services 37 31 74 61 Life Insurance 133 120 263 195 Group Protection 35 15 42 20 Other Operations (37 ) (28 ) (51 ) (39 ) Excluded realized gain (loss), after-tax (34 ) (57 ) (85 ) (159 ) Income (loss) from reserve changes (net of related amortization) on business sold through reinsurance, after-tax - - - 1 Benefit ratio unlocking, after-tax 26 9 71 4 Net income (loss) $ 411 $ 325 $ 846 $ 536 |
Variable Interest Entities ("20
Variable Interest Entities ("VIE's") (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Variable Interest Entities ("VIE's") [Abstract] | |
Consolidated Variable Interest Entity Asset and Liability information | As of June 30, 2017 As of December 31, 2016 Number Number of Notional Carrying of Notional Carrying Instruments Amounts Value Instruments Amounts Value Assets Fixed maturity securities: Asset-backed credit card loans (1) N/A $ - $ - N/A $ - $ 200 Total return swap 1 542 - 1 533 - Credit default swaps - - - 1 200 - Total assets 1 $ 542 $ - 2 $ 733 $ 200 (1) Reported in variable interest entities’ fixed maturity securities on our Consolidated Balance Sheets. |
Consolidated Variable Interest Entity Settlement Payments and Mark-to-Market Adjustments | For the Three For the Six Months Ended Months Ended June 30, June 30, 2017 2016 2017 2016 Non-Qualifying Hedges Credit default swaps $ - $ (1 ) $ - $ 5 Contingent forwards - - - - Total non-qualifying hedges (1) $ - $ (1 ) $ - $ 5 (1) Reported in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss ). |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Investments [Abstract] | |
Reconciliation Of Available-For-Sale Securities From Cost Basis To Fair Value | As of June 30, 2017 Amortized Gross Unrealized Fair Cost Gains Losses OTTI (1) Value Fixed maturity securities: Corporate bonds $ 74,934 $ 6,108 $ 500 $ (6 ) $ 80,548 Asset-backed securities ("ABS") 996 46 12 (20 ) 1,050 U.S. government bonds 536 44 2 - 578 Foreign government bonds 397 58 - - 455 Residential mortgage-backed securities ("RMBS") 3,412 160 38 (18 ) 3,552 Commercial mortgage-backed securities ("CMBS") 466 10 2 (2 ) 476 Collateralized loan obligations ("CLOs") 697 4 2 (4 ) 703 State and municipal bonds 4,172 850 12 - 5,010 Hybrid and redeemable preferred securities 584 85 27 - 642 Total fixed maturity securities 86,194 7,365 595 (50 ) 93,014 Equity securities 262 19 6 - 275 Total AFS securities $ 86,456 $ 7,384 $ 601 $ (50 ) $ 93,289 As of December 31, 2016 Amortized Gross Unrealized Fair Cost Gains Losses OTTI (1) Value Fixed maturity securities: Corporate bonds $ 73,275 $ 4,754 $ 970 $ (5 ) $ 77,064 ABS 1,047 39 14 (13 ) 1,085 U.S. government bonds 384 37 2 - 419 Foreign government bonds 449 58 1 - 506 RMBS 3,534 147 73 (6 ) 3,614 CMBS 345 8 4 (1 ) 350 CLOs 742 1 3 (4 ) 744 State and municipal bonds 3,929 718 20 - 4,627 Hybrid and redeemable preferred securities 582 70 48 - 604 VIEs’ fixed maturity securities 200 - - - 200 Total fixed maturity securities 84,487 5,832 1,135 (29 ) 89,213 Equity securities 260 19 4 - 275 Total AFS securities $ 84,747 $ 5,851 $ 1,139 $ (29 ) $ 89,488 (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 $ 3,559 $ 3,750 Due after one year through five years 16,854 18,006 Due after five years through ten years 15,756 16,742 Due after ten years 44,454 48,735 Subtotal 80,623 87,233 Structured securities (ABS, MBS, CLOs) 5,571 5,781 Total fixed maturity AFS securities $ 86,194 $ 93,014 |
Fair Value And Gross Unrealized Losses In A Continuous Unrealized Loss Position | As of June 30, 2017 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 $ 8,521 $ 223 $ 2,417 $ 279 $ 10,938 $ 502 ABS 84 3 260 21 344 24 U.S. government bonds 172 2 - - 172 2 RMBS 805 35 146 5 951 40 CMBS 92 2 8 2 100 4 CLOs 227 2 19 - 246 2 State and municipal bonds 132 7 47 5 179 12 Hybrid and redeemable preferred securities 22 1 151 26 173 27 Total fixed maturity securities 10,055 275 3,048 338 13,103 613 Equity securities 10 4 15 1 25 5 Total AFS securities $ 10,065 $ 279 $ 3,063 $ 339 $ 13,128 $ 618 Total number of AFS securities in an unrealized loss position 1,155 As of December 31, 2016 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 $ 15,820 $ 569 $ 3,187 $ 403 $ 19,007 $ 972 ABS 201 4 298 25 499 29 U.S. government bonds 18 2 - - 18 2 Foreign government bonds 29 1 - - 29 1 RMBS 989 58 392 23 1,381 81 CMBS 190 4 19 2 209 6 CLOs 259 3 25 - 284 3 State and municipal bonds 227 12 47 8 274 20 Hybrid and redeemable preferred securities 76 4 143 44 219 48 Total fixed maturity securities 17,809 657 4,111 505 21,920 1,162 Equity securities 4 2 44 2 48 4 Total AFS securities $ 17,813 $ 659 $ 4,155 $ 507 $ 21,968 $ 1,166 Total number of AFS securities in an unrealized loss position 1,744 |
Schedule Of Available-For-Sale Securites Whose Value Is Below Amortized Cost | As of June 30, 2017 Number Fair Gross Unrealized of Value Losses OTTI Securities (1) Less than six months $ 64 $ 26 $ - 21 Six months or greater, but less than nine months 41 14 - 5 Nine months or greater, but less than twelve months 2 1 1 3 Twelve months or greater 253 110 9 51 Total $ 360 $ 151 $ 10 80 As of December 31, 2016 Number Fair Gross Unrealized of Value Losses OTTI Securities (1) Less than six months $ 174 $ 52 $ 2 19 Nine months or greater, but less than twelve months 1 1 - 2 Twelve months or greater 364 167 10 62 Total $ 539 $ 220 $ 12 83 (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 Three For the Six Months Ended Months Ended June 30, June 30, 2017 2016 2017 2016 Balance as of beginning-of-period $ 393 $ 413 $ 430 $ 382 Increases attributable to: Credit losses on securities for which an OTTI was not previously recognized 4 26 5 61 Credit losses on securities for which an OTTI was previously recognized - 2 3 7 Decreases attributable to: Securities sold, paid down or matured (7 ) (10 ) (48 ) (19 ) Balance as of end-of-period $ 390 $ 431 $ 390 $ 431 |
Schedule of Details Of The Amount Of Credit Losses Of OTTI Recognized In Net Income (Loss) | As of June 30, 2017 Net Unrealized OTTI in Amortized Gain/(Loss) Fair Credit Cost Position Value Losses Corporate bonds $ 22 $ 6 $ 28 $ 43 ABS 199 20 219 112 RMBS 292 18 310 188 CMBS 18 2 20 39 CLOs 11 4 15 5 State and municipal bonds - - - 3 Total $ 542 $ 50 $ 592 $ 390 As of December 31, 2016 Net Unrealized OTTI in Amortized Gain/(Loss) Fair Credit Cost Position Value Losses Corporate bonds $ 80 $ 5 $ 85 $ 77 ABS 212 13 225 112 RMBS 332 6 338 194 CMBS 29 1 30 39 CLOs 11 4 15 5 State and municipal bonds 2 - 2 3 Total $ 666 $ 29 $ 695 $ 430 |
Composition Of Current And Past Due Mortgage Loans On Real Estate | As of As of June 30, December 31, 2017 2016 Current $ 10,023 $ 9,888 60 to 90 days past due - - Greater than 90 days past due 2 2 Valuation allowance associated with impaired mortgage loans on real estate (2 ) (2 ) Unamortized premium (discount) - 1 Total carrying value $ 10,023 $ 9,889 |
Schedule Of Impaired Mortgage Loans | As of As of June 30, December 31, 2017 2016 Number of impaired mortgage loans on real estate 2 2 Principal balance of impaired mortgage loans on real estate $ 7 $ 7 Valuation allowance associated with impaired mortgage loans on real estate (2 ) (2 ) Carrying value of impaired mortgage loans on real estate $ 5 $ 5 |
Schedule of changes in the valuation allowance associated with impaired mortgage loans on real estate | For the Three For the Six Months Ended Months Ended June 30, June 30, 2017 2016 2017 2016 Balance as of beginning-of-period $ 2 $ 2 $ 2 $ 2 Additions - - - - Charge-offs, net of recoveries - - - - Balance as of end-of-period $ 2 $ 2 $ 2 $ 2 |
Schedule Of Average Carrying Value Of Impaired Mortgage Loans | For the Three For the Six Months Ended Months Ended June 30, June 30, 2017 2016 2017 2016 Average carrying value for impaired mortgage loans on real estate $ 5 $ 6 $ 5 $ 6 Interest income recognized on impaired mortgage loans on real estate - - - - Interest income collected on impaired mortgage loans on real estate - - - - |
Credit Quality Indicators For Mortgage Loans | As of June 30, 2017 As of December 31, 2016 Debt- Debt- Service Service Carrying % of Coverage Carrying % of Coverage Loan-to-Value Ratio Value Total Ratio Value Total Ratio Less than 65% $ 8,993 89.7% 2.22 $ 8,709 88.0% 2.16 65% to 74% 892 8.9% 1.89 1,009 10.2% 1.87 75% to 100% 133 1.3% 0.82 166 1.7% 0.82 Greater than 100% 5 0.1% 1.04 5 0.1% 1.04 Total mortgage loans on real estate $ 10,023 100.0% $ 9,889 100.0% |
Realized Gain (Loss) Related To Certain Investments | For the Three For the Six Months Ended Months Ended June 30, June 30, 2017 2016 2017 2016 Fixed maturity AFS securities: (1) Gross gains $ 3 $ 7 $ 11 $ 61 Gross losses (13 ) (65 ) (25 ) (163 ) Equity AFS securities: Gross gains - 2 1 2 Gross losses - (1 ) - (1 ) Gain (loss) on other investments (2 ) (3 ) (5 ) (63 ) Associated amortization of DAC, VOBA, DSI and DFEL and changes in other contract holder funds (6 ) (5 ) (13 ) (8 ) Total realized gain (loss) related to certain investments, pre-tax $ (18 ) $ (65 ) $ (31 ) $ (172 ) (1) These amounts are represented net of related fair value hedging activity. See Note 5 for more information. |
OTTI Recognized In Net Income (Loss) And OCI | For the Three For the Six Months Ended Months Ended June 30, June 30, 2017 2016 2017 2016 OTTI Recognized in Net Income (Loss) Fixed maturity securities: Corporate bonds $ (4 ) $ (26 ) $ (5 ) $ (62 ) ABS - (1 ) (1 ) (3 ) RMBS - (1 ) (1 ) (3 ) State and municipal bonds - - (1 ) - Total fixed maturity securities (4 ) (28 ) (8 ) (68 ) Equity securities - (1 ) - (1 ) Gross OTTI recognized in net income (loss) (4 ) (29 ) (8 ) (69 ) Associated amortization of DAC, VOBA, DSI and DFEL - 1 - 5 Net OTTI recognized in net income (loss), pre-tax $ (4 ) $ (28 ) $ (8 ) $ (64 ) Portion of OTTI Recognized in OCI Gross OTTI recognized in OCI $ - $ 10 $ - $ 36 Change in DAC, VOBA, DSI and DFEL - (2 ) - (8 ) Net portion of OTTI recognized in OCI, pre-tax $ - $ 8 $ - $ 28 |
Payables For Collateral On Investments | As of June 30, 2017 As of December 31, 2016 Carrying Fair Carrying Fair Value Value Value Value Collateral payable for derivative investments (1) $ 1,054 $ 1,054 $ 894 $ 894 Securities pledged under securities lending agreements (2) 208 200 216 209 Securities pledged under repurchase agreements (3) 540 587 535 589 Investments pledged for Federal Home Loan Bank of Indianapolis (“FHLBI”) (4) 3,150 4,654 3,350 4,947 Total payables for collateral on investments $ 4,952 $ 6,495 $ 4,995 $ 6,639 (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 5 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 Six Months Ended June 30, 2017 2016 Collateral payable for derivative investments $ 160 $ 1,617 Securities pledged under securities lending agreements (8 ) 7 Securities pledged under repurchase agreements 5 16 Investments pledged for FHLBI (200 ) - Total increase (decrease) in payables for collateral on investments $ (43 ) $ 1,640 |
Schedule Of Securities Pledged By Contractual Maturity | As of June 30, 2017 Overnight and Continuous Up to 30 Days 30 - 90 Days Greater Than 90 Days Total Repurchase Agreements Corporate bonds $ - $ 100 $ 290 $ 150 $ 540 Total - 100 290 150 540 Securities Lending Corporate bonds 208 - - - 208 Total 208 - - - 208 Total gross secured borrowings $ 208 $ 100 $ 290 $ 150 $ 748 As of December 31, 2016 Overnight and Continuous Up to 30 Days 30 - 90 Days Greater Than 90 Days Total Repurchase Agreements Corporate bonds $ - $ - $ 389 $ 146 $ 535 Total - - 389 146 535 Securities Lending Corporate bonds 212 - - - 212 Foreign government bonds 4 - - - 4 Total 216 - - - 216 Total gross secured borrowings $ 216 $ - $ 389 $ 146 $ 751 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Derivative Instruments [Abstract] | |
Outstanding Derivative Instruments With Off-Balance-Sheet Risks | As of June 30, 2017 As of December 31, 2016 Notional Fair Value Notional Fair Value Amounts Asset Liability Amounts Asset Liability Qualifying Hedges Cash flow hedges: Interest rate contracts (1) $ 3,607 $ 47 $ 92 $ 3,552 $ 68 $ 122 Foreign currency contracts (1) 1,512 116 21 1,177 153 10 Total cash flow hedges 5,119 163 113 4,729 221 132 Fair value hedges: Interest rate contracts (1) 1,477 263 182 1,512 258 182 Non-Qualifying Hedges Interest rate contracts (1) 78,622 766 151 70,290 985 701 Foreign currency contracts (1) 8 - - 14 - - Equity market contracts (1) 29,704 529 390 28,315 541 616 Credit contracts (1) 63 - - 66 - - Embedded derivatives: Guaranteed living benefit ("GLB") (2) - 298 - - - - GLB (3) - - - - - 371 Reinsurance related (4) - - 53 - - 53 Indexed annuity and IUL contracts (5) - - 1,268 - - 1,139 Total derivative instruments $ 114,993 $ 2,019 $ 2,157 $ 104,926 $ 2,005 $ 3,194 (1) Reported in derivative investments and other liabilities on our Consolidated Balance Sheets. (2) Reported in other assets on our Consolidated Balance Sheets. (3) Reported in other liabilities on our Consolidated Balance Sheets. (4) Reported in reinsurance related embedded derivatives on our Consolidated Balance Sheets. (5) Reported in future contract benefits on our Consolidated Balance Sheets. |
Maturity Of The Notional Amounts Of Derivative Financial Instruments | Remaining Life as of June 30, 2017 Less Than 1 - 5 6 - 10 11 - 30 Over 30 1 Year Years Years Years Years Total Interest rate contracts (1) $ 15,024 $ 22,369 $ 30,174 $ 14,926 $ 1,213 $ 83,706 Foreign currency contracts (2) 19 151 378 962 10 1,520 Equity market contracts 17,594 9,784 869 15 1,442 29,704 Credit contracts - 63 - - - 63 Total derivative instruments with notional amounts $ 32,637 $ 32,367 $ 31,421 $ 15,903 $ 2,665 $ 114,993 (1) As of June 30, 2017 , 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 June 30, 2017 , the latest maturity date for which we were hedging our exposure to the variability in future cash flows for these instruments was September 2049 . |
Change In Our Unrealized Gain On Derivative Instruments In Accumulated OCI | For the Six Months Ended June 30, 2017 2016 Unrealized Gain (Loss) on Derivative Instruments Balance as of beginning-of-year $ 49 $ 132 Other comprehensive income (loss): Unrealized holding gains (losses) arising during the period: Cash flow hedges: Interest rate contracts 1 (240 ) Foreign currency contracts 45 32 Change in foreign currency exchange rate adjustment (75 ) 35 Change in DAC, VOBA, DSI and DFEL (8 ) (6 ) Income tax benefit (expense) 13 62 Less: Reclassification adjustment for gains (losses) included in net income (loss): Cash flow hedges: Interest rate contracts (1) 2 4 Interest rate contracts (2) (9 ) (2 ) Foreign currency contracts (1) 9 3 Foreign currency contracts (3) 5 4 Associated amortization of DAC, VOBA, DSI and DFEL (2 ) (1 ) Income tax benefit (expense) (2 ) (3 ) Balance as of end-of-period $ 22 $ 10 (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). (3) The OCI offset is reported within realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). |
Gains (Losses) On Derivative Instruments Recorded Within Income (Loss) From Continuing Operations | For the Three For the Six Months Ended Months Ended June 30, June 30, 2017 2016 2017 2016 Qualifying Hedges Cash flow hedges: Interest rate contracts (1) $ 1 $ 3 $ 2 $ 4 Interest rate contracts (2) (5 ) (2 ) (9 ) (2 ) Foreign currency contracts (1) 4 1 9 3 Foreign currency contracts (3) - - 5 4 Total cash flow hedges - 2 7 9 Fair value hedges: Interest rate contracts (1) (6 ) (7 ) (13 ) (15 ) Interest rate contracts (2) 7 8 15 16 Interest rate contracts (3) (9 ) (32 ) - (86 ) Total fair value hedges (8 ) (31 ) 2 (85 ) Non-Qualifying Hedges Interest rate contracts (3) 193 614 143 1,590 Foreign currency contracts (3) (2 ) (7 ) 1 (3 ) Equity market contracts (3) (289 ) (252 ) (817 ) (582 ) Equity market contracts (4) 5 3 14 2 Credit contracts (3) - (4 ) - (7 ) Embedded derivatives: GLB (3) 72 (542 ) 669 (1,505 ) Reinsurance related (3) (3 ) (23 ) - (47 ) Indexed annuity and IUL contracts (3) (64 ) (19 ) (184 ) (12 ) Total derivative instruments $ (96 ) $ (259 ) $ (165 ) $ (640 ) (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 Three For the Six Months Ended Months Ended June 30, June 30, 2017 2016 2017 2016 Offset to net investment income $ 5 $ 4 $ 11 $ 7 Offset to realized gain (loss) - - 5 4 Offset to interest and debt expense (5 ) (2 ) (9 ) (2 ) |
Open Credit Default Swap Liabilities | As of June 30, 2017 Credit Reason Nature Rating of Number Maximum for of Underlying of Fair Potential Credit Contract Type Maturity Entering Recourse Obligation (1) Instruments Value (2) Payout Basket credit default swaps 6/20/2022 (3) (4) BBB+ 1 $ 1 $ 63 1 $ 1 $ 63 As of December 31, 2016 Credit Reason Nature Rating of Number Maximum for of Underlying of Fair Potential Credit Contract Type Maturity Entering Recourse Obligation (1) Instruments Value (2) Payout Single name credit default swaps 3/20/2017 (5) (6) (4) BBB+ 2 $ - $ 40 2 $ - $ 40 (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) Credit default swaps were entered into in order to hedge the liability exposure on certain variable annuity products. (4) Sellers do not have the right to demand indemnification or compensation from third parties in case of a loss (payment) on the contract. (5) These credit default swaps were sold to a counterparty of the consolidated VIEs discussed in Note 4 in our 2016 Form 10-K. (6) Credit default swaps were entered into in order to generate income by providing default protection in return for a quarterly payment. |
Collateral Support Agreements | As of As of June 30, December 31, 2017 2016 Maximum potential payout $ 63 $ 40 Less: Counterparty thresholds - - Maximum collateral potentially required to post $ 63 $ 40 |
Schedule Of Collateral Amounts With Rights To Reclaim Or Obligation To Return Cash | As of June 30, 2017 As of December 31, 2016 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- $ 96 $ - $ 53 $ (32 ) A+ 39 (235 ) 10 (217 ) A 579 (287 ) 466 (381 ) A- 39 - 67 - BBB+ 301 (5 ) 298 - $ 1,054 $ (527 ) $ 894 $ (630 ) |
Schedule Of Offsetting Assets And Liabilities | As of June 30, 2017 Embedded Derivative Derivative Instruments Instruments Total Financial Assets Gross amount of recognized assets $ 1,600 $ 298 $ 1,898 Gross amounts offset (546 ) - (546 ) Net amount of assets 1,054 298 1,352 Gross amounts not offset: Cash collateral (1,054 ) - (1,054 ) Net amount $ - $ 298 $ 298 Financial Liabilities Gross amount of recognized liabilities $ 611 $ 1,321 $ 1,932 Gross amounts offset (121 ) - (121 ) Net amount of liabilities 490 1,321 1,811 Gross amounts not offset: Cash collateral (527 ) - (527 ) Net amount $ (37 ) $ 1,321 $ 1,284 As of December 31, 2016 Embedded Derivative Derivative Instruments Instruments Total Financial Assets Gross amount of recognized assets $ 1,470 $ - $ 1,470 Gross amounts offset (543 ) - (543 ) Net amount of assets 927 - 927 Gross amounts not offset: Cash collateral (894 ) - (894 ) Net amount $ 33 $ - $ 33 Financial Liabilities Gross amount of recognized liabilities $ 1,089 $ 1,563 $ 2,652 Gross amounts offset (536 ) - (536 ) Net amount of liabilities 553 1,563 2,116 Gross amounts not offset: Cash collateral (630 ) - (630 ) Net amount $ (77 ) $ 1,563 $ 1,486 |
Guaranteed Benefit Features (Ta
Guaranteed Benefit Features (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Guaranteed Benefit Features [Abstract] | |
Information On Guaranteed Death Benefit Features | As of As of June 30, December 31, 2017 (1) 2016 (1) Return of Net Deposits Total account value $ 92,182 $ 87,707 Net amount at risk (2) 179 824 Average attained age of contract holders 64 years 63 years Minimum Return Total account value $ 107 $ 105 Net amount at risk (2) 19 22 Average attained age of contract holders 76 years 75 years Guaranteed minimum return 5% 5% Anniversary Contract Value Total account value $ 25,666 $ 24,605 Net amount at risk (2) 482 782 Average attained age of contract holders 70 years 69 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 Six Months Ended June 30, 2017 2016 Balance as of beginning-of-year $ 110 $ 115 Changes in reserves (2 ) 22 Benefits paid (11 ) (24 ) Balance as of end-of-period $ 97 $ 113 |
Account Balances Of Variable Annuity Contracts With Guarantees Invested In Separate Accounts | As of As of June 30, December 31, 2017 2016 Asset Type Domestic equity $ 55,453 $ 52,244 International equity 18,610 17,396 Bonds 27,829 27,532 Money market 13,327 12,010 Total $ 115,219 $ 109,182 Percent of total variable annuity separate account values 99% 99% |
Shares and Stockholders' Equi24
Shares and Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Shares and Stockholders' Equity [Abstract] | |
Changes In Common stock (Number Of Shares) | For the Three For the Six Months Ended Months Ended June 30, June 30, 2017 2016 2017 2016 Common Stock Balance as of beginning-of-period 224,888,259 239,005,252 226,335,105 243,835,893 Stock issued for exercise of warrants 289,636 13,335 334,930 38,148 Stock compensation/issued for benefit plans 89,455 9,537 1,461,286 670,142 Retirement/cancellation of shares (3,030,088 ) (6,243,433 ) (5,894,059 ) (11,759,492 ) Balance as of end-of-period 222,237,262 232,784,691 222,237,262 232,784,691 Common Stock as of End-of-Period Basic basis 222,237,262 232,784,691 222,237,262 232,784,691 Diluted basis (1) 226,044,165 236,179,176 226,044,165 236,179,176 (1) Effective October 1, 2016, we early adopted ASU 2016-09, Improvements to Employee Share-Based Payment Accounting. We have updated certain previously reported interim results and metrics as of January 1, 2016, in accordance with th is guidance. For more information, see Note 1 – Earnings Per Share in our 2016 Form 10-K. |
Reconciliation Of The Denominator Calculations Of Basic And Diluted EPS | For the Three For the Six Months Ended Months Ended June 30, June 30, 2017 2016 2017 2016 Weighted-average shares, as used in basic calculation 223,555,299 236,463,183 224,581,848 239,069,774 Shares to cover exercise of outstanding warrants 694,403 1,098,405 858,916 1,100,176 Shares to cover non-vested stock (1) 1,426,550 872,481 1,551,173 967,816 Average stock options outstanding during the period (1) 2,339,558 2,090,988 2,510,344 1,948,817 Assumed acquisition of shares with assumed proceeds from exercising outstanding warrants (105,156 ) (265,103 ) (127,696 ) (278,312 ) Assumed acquisition of shares with assumed proceeds and benefits from exercising stock options (at average market price for the period) (1) (1,464,321 ) (1,429,907 ) (1,541,738 ) (1,364,709 ) Shares repurchasable from measured but unrecognized stock option expense (1) (59,959 ) (34,492 ) (68,519 ) (17,797 ) Average deferred compensation shares 927,508 1,101,384 938,661 1,070,657 Weighted-average shares, as used in diluted calculation (1) 227,313,882 239,896,939 228,702,989 242,496,422 (1) Effective October 1, 2016, we early adopted ASU 2016-09, Improvements to Employee Share-Based Payment Accounting. We have updated certain previously reported interim results and metrics as of January 1, 2016, in accordance with th is guidance. For more information, see Note 1 – Earnings Per Share in our 2016 Form 10-K. |
Components And Changes In Accumulated OCI | For the Six Months Ended June 30, 2017 2016 Unrealized Gain (Loss) on AFS Securities Balance as of beginning-of-year $ 1,784 $ 991 Unrealized holding gains (losses) arising during the period 2,058 5,394 Change in foreign currency exchange rate adjustment 69 (33 ) Change in DAC, VOBA, DSI, future contract benefits and other contract holder funds (356 ) (1,620 ) Income tax benefit (expense) (626 ) (1,321 ) Less: Reclassification adjustment for gains (losses) included in net income (loss) (13 ) (101 ) Associated amortization of DAC, VOBA, DSI and DFEL (11 ) (7 ) Income tax benefit (expense) 8 38 Balance as of end-of-period $ 2,945 $ 3,481 Unrealized OTTI on AFS Securities Balance as of beginning-of-year $ 25 $ 26 (Increases) attributable to: Gross OTTI recognized in OCI during the period - (36 ) Change in DAC, VOBA, DSI and DFEL - 8 Income tax benefit (expense) - 10 Decreases attributable to: Changes in fair value, sales, maturities or other settlements of AFS securities 21 5 Change in DAC, VOBA, DSI and DFEL (4 ) (1 ) Income tax benefit (expense) (6 ) (2 ) Balance as of end-of-period $ 36 $ 10 Unrealized Gain (Loss) on Derivative Instruments Balance as of beginning-of-year $ 49 $ 132 Unrealized holding gains (losses) arising during the period 46 (208 ) Change in foreign currency exchange rate adjustment (75 ) 35 Change in DAC, VOBA, DSI and DFEL (8 ) (6 ) Income tax benefit (expense) 13 62 Less: Reclassification adjustment for gains (losses) included in net income (loss) 7 9 Associated amortization of DAC, VOBA, DSI and DFEL (2 ) (1 ) Income tax benefit (expense) (2 ) (3 ) Balance as of end-of-period $ 22 $ 10 Foreign Currency Translation Adjustment Balance as of beginning-of-year $ (27 ) $ (5 ) Foreign currency translation adjustment arising during the period 7 (13 ) Balance as of end-of-period $ (20 ) $ (18 ) Funded Status of Employee Benefit Plans Balance as of beginning-of-year $ (265 ) $ (299 ) Adjustment arising during the period (7 ) 11 Balance as of end-of-period $ (272 ) $ (288 ) |
Schedule of Reclassifications Out Of AOCI | For the Six Months Ended June 30, 2017 2016 Unrealized Gain (Loss) on AFS Securities Gross reclassification $ (13 ) $ (101 ) Total realized gain (loss) Associated amortization of DAC, VOBA, DSI and DFEL (11 ) (7 ) Total realized gain (loss) Reclassification before income Income (loss) from continuing tax benefit (expense) (24 ) (108 ) operations before taxes Income tax benefit (expense) 8 38 Federal income tax expense (benefit) Reclassification, net of income tax $ (16 ) $ (70 ) Net income (loss) Unrealized OTTI on AFS Securities Gross reclassification $ (1 ) $ 1 Total realized gain (loss) Change in DAC, VOBA, DSI and DFEL - - Total realized gain (loss) Reclassification before income Income (loss) from continuing tax benefit (expense) (1 ) 1 operations before taxes Income tax benefit (expense) - - Federal income tax expense (benefit) Reclassification, net of income tax $ (1 ) $ 1 Net income (loss) Unrealized Gain (Loss) on Derivative Instruments Gross reclassifications: Interest rate contracts $ 2 $ 4 Net investment income Interest rate contracts (9 ) (2 ) Interest and debt expense Foreign currency contracts 9 7 Net investment income Foreign currency contracts 5 - Total realized gain (loss) Total gross reclassifications 7 9 Associated amortization of DAC, VOBA, DSI and DFEL (2 ) (1 ) Commissions and other expenses Reclassifications before income Income (loss) from continuing tax benefit (expense) 5 8 operations before taxes Income tax benefit (expense) (2 ) (3 ) Federal income tax expense (benefit) Reclassifications, net of income tax $ 3 $ 5 Net income (loss) |
Realized Gain (Loss) (Tables)
Realized Gain (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Realized Gain (Loss) [Abstract] | |
Details underlying realized (gain) loss | For the Three For the Six Months Ended Months Ended June 30, June 30, 2017 2016 2017 2016 Total realized gain (loss) related to certain investments (1) $ (18 ) $ (65 ) $ (31 ) $ (172 ) Realized gain (loss) on the mark-to-market on certain instruments (2) (5 ) (8 ) 5 - Indexed annuity and IUL contracts net derivatives results: (3) Gross gain (loss) (7 ) (9 ) (17 ) (33 ) Associated amortization of DAC, VOBA, DSI and DFEL 2 4 1 6 Variable annuity net derivatives results: (4) Gross gain (loss) 23 37 (5 ) 48 Associated amortization of DAC, VOBA, DSI and DFEL (5 ) (4 ) (2 ) (8 ) Total realized gain (loss) $ (10 ) $ (45 ) $ (49 ) $ (159 ) (1) See “Realized Gain (Loss) Related to Certain Investments” section in Note 4 . (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 Index ® 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 GLB and GDB riders, including the cost of purchasing the hedging instruments. |
Stock-Based Compensation Plans
Stock-Based Compensation Plans (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Stock-Based Compensation Plans [Abstract] | |
Stock Based Awards Granted Table | For the For the Three Six Months Months Ended Ended June 30, June 30, 2017 2017 10-year LNC stock options 15,270 407,637 Performance shares 5,126 154,351 RSUs 37,365 435,865 Non-employee: SARs - 26,494 Agent stock options - 102,638 Director DSUs 7,059 14,534 |
Fair Value of Financial Instr27
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value of Financial Instruments [Abstract] | |
Carrying And Estimated Fair Values Of Financial Instruments | As of June 30, 2017 As of December 31, 2016 Carrying Fair Carrying Fair Value Value Value Value Assets AFS securities: Fixed maturity securities $ 93,014 $ 93,014 $ 89,013 $ 89,013 VIEs’ fixed maturity securities - - 200 200 Equity securities 275 275 275 275 Trading securities 1,678 1,678 1,712 1,712 Mortgage loans on real estate 10,023 10,157 9,889 9,853 Derivative investments (1) 1,054 1,054 927 927 Other investments 2,156 2,156 2,230 2,230 Cash and invested cash 1,978 1,978 2,722 2,722 Other assets: GLB direct embedded derivatives (2) 298 298 - - GLB ceded embedded derivatives 85 85 203 203 Separate account assets 135,825 135,825 128,397 128,397 Liabilities Future contract benefits – indexed annuity and IUL contracts embedded derivatives (1,268 ) (1,268 ) (1,139 ) (1,139 ) Other contract holder funds: Remaining guaranteed interest and similar contracts (625 ) (625 ) (629 ) (629 ) Account values of certain investment contracts (31,982 ) (36,201 ) (31,516 ) (35,647 ) Short-term debt (450 ) (457 ) - - Long-term debt (4,901 ) (5,485 ) (5,345 ) (5,679 ) Reinsurance related embedded derivatives (53 ) (53 ) (53 ) (53 ) Other liabilities: Derivative liabilities (1) (169 ) (169 ) (553 ) (553 ) GLB direct embedded derivatives (2) - - (371 ) (371 ) (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) Portions of our GLB direct embedded derivatives are ceded to third-party reinsurance counterparties. Refer to Note 5 for additional detail. |
Fair Value Of Assets And Liabilities On A Recurring Basis | As of June 30, 2017 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 $ - $ 78,031 $ 2,517 $ 80,548 ABS - 1,007 43 1,050 U.S. government bonds 564 9 5 578 Foreign government bonds - 346 109 455 RMBS - 3,545 7 3,552 CMBS - 455 21 476 CLOs - 675 28 703 State and municipal bonds - 5,010 - 5,010 Hybrid and redeemable preferred securities 67 493 82 642 Equity AFS securities 13 79 183 275 Trading securities 73 1,546 59 1,678 Derivative investments (1) - 1,150 571 1,721 Other investments 150 - - 150 Cash and invested cash - 1,978 - 1,978 Other assets: GLB direct embedded derivatives - - 298 298 GLB ceded embedded derivatives - - 85 85 Separate account assets 772 135,053 - 135,825 Total assets $ 1,639 $ 229,377 $ 4,008 $ 235,024 Liabilities Future contract benefits – indexed annuity and IUL contracts embedded derivatives $ - $ - $ (1,268 ) $ (1,268 ) Long-term debt - (1,135 ) - (1,135 ) Reinsurance related embedded derivatives - (53 ) - (53 ) Other liabilities – derivative liabilities (1) - (420 ) (416 ) (836 ) Total liabilities $ - $ (1,608 ) $ (1,684 ) $ (3,292 ) As of December 31, 2016 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 $ - $ 74,659 $ 2,405 $ 77,064 ABS - 1,052 33 1,085 U.S. government bonds 408 11 - 419 Foreign government bonds - 395 111 506 RMBS - 3,611 3 3,614 CMBS - 343 7 350 CLOs - 676 68 744 State and municipal bonds - 4,627 - 4,627 Hybrid and redeemable preferred securities 60 468 76 604 VIEs’ fixed maturity securities - 200 - 200 Equity AFS securities 17 81 177 275 Trading securities 102 1,545 65 1,712 Derivative investments (1) - 1,406 599 2,005 Other investments 146 - - 146 Cash and invested cash - 2,722 - 2,722 Other assets – GLB ceded embedded derivatives - - 203 203 Separate account assets 863 127,534 - 128,397 Total assets $ 1,596 $ 219,330 $ 3,747 $ 224,673 Liabilities Future contract benefits – indexed annuity and IUL contracts embedded derivatives $ - $ - $ (1,139 ) $ (1,139 ) Long-term debt - (1,203 ) - (1,203 ) Reinsurance related embedded derivatives - (53 ) - (53 ) Other liabilities: Derivative liabilities (1) - (939 ) (692 ) (1,631 ) GLB direct embedded derivatives - - (371 ) (371 ) Total liabilities $ - $ (2,195 ) $ (2,202 ) $ (4,397 ) (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 Three Months Ended June 30, 2017 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: (3) Fixed maturity AFS securities: Corporate bonds $ 2,403 $ 5 $ 53 $ 57 $ (1 ) $ 2,517 ABS 29 - - - 14 43 U.S. government bonds 5 - - - - 5 Foreign government bonds 110 - (1 ) - - 109 RMBS 7 - - - - 7 CMBS 44 - 1 14 (38 ) 21 CLOs 88 - - 13 (73 ) 28 State and municipal bonds 1 - - - (1 ) - Hybrid and redeemable preferred securities 79 - 8 - (5 ) 82 Equity AFS securities 182 - - 1 - 183 Trading securities 60 1 1 - (3 ) 59 Derivative investments 112 58 65 (80 ) - 155 Other assets: (5) GLB direct embedded derivatives 226 72 - - - 298 GLB ceded embedded derivatives 116 (31 ) - - - 85 Future contract benefits – indexed annuity and IUL contracts embedded derivatives (5) (1,238 ) (64 ) - 34 - (1,268 ) Total, net $ 2,224 $ 41 $ 127 $ 39 $ (107 ) $ 2,324 For the Three Months Ended June 30, 2016 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: (3) Fixed maturity AFS securities: Corporate bonds $ 2,185 $ (6 ) $ 46 $ 118 $ 82 $ 2,425 ABS 44 - - 14 4 62 U.S. government bonds - - - 10 - 10 Foreign government bonds 111 - 1 - - 112 RMBS 1 - - 15 - 16 CMBS 9 2 (1 ) (2 ) - 8 CLOs 591 - - 40 (586 ) 45 Hybrid and redeemable preferred securities 92 - (3 ) - - 89 Equity AFS securities 167 - 3 - - 170 Trading securities 74 1 (1 ) - (9 ) 65 Derivative investments 190 183 79 (29 ) - 423 Other investments (4) 2 (1 ) - - - 1 Other assets – GLB ceded embedded derivatives (5) 433 106 - - - 539 Future contract benefits – indexed annuity and IUL contracts embedded derivatives (5) (1,088 ) (19 ) - 5 - (1,102 ) Other liabilities: Credit default swaps (4) (12 ) (4 ) - - - (16 ) GLB direct embedded derivatives (5) (1,916 ) (542 ) - - - (2,458 ) Total, net $ 883 $ (280 ) $ 124 $ 171 $ (509 ) $ 389 For the Six Months Ended June 30, 2017 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: (3) Fixed maturity AFS securities: Corporate bonds $ 2,405 $ 11 $ 118 $ (147 ) $ 130 $ 2,517 ABS 33 - 1 - 9 43 U.S. government bonds - - - - 5 5 Foreign government bonds 111 - (2 ) - - 109 RMBS 3 - - 4 - 7 CMBS 7 - 1 55 (42 ) 21 CLOs 68 - - 18 (58 ) 28 State and municipal bonds - (1 ) - - 1 - Hybrid and redeemable preferred securities 76 - 11 - (5 ) 82 Equity AFS securities 177 1 (1 ) 6 - 183 Trading securities 65 2 8 (16 ) - 59 Derivative investments (93 ) (11 ) 88 171 - 155 Other assets: (5) GLB direct embedded derivatives - 298 - - - 298 GLB ceded embedded derivatives 203 (118 ) - - - 85 Future contract benefits – indexed annuity and IUL contracts embedded derivatives (5) (1,139 ) (184 ) - 55 - (1,268 ) Other liabilities – GLB direct embedded derivatives (5) (371 ) 371 - - - - Total, net $ 1,545 $ 369 $ 224 $ 146 $ 40 $ 2,324 For the Six Months Ended June 30, 2016 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: (3) Fixed maturity AFS securities: Corporate bonds $ 1,993 $ - $ 64 $ 146 $ 222 $ 2,425 ABS 45 - (1 ) 14 4 62 U.S. government bonds - - - 10 - 10 Foreign government bonds 111 - 1 - - 112 RMBS 1 - - 15 - 16 CMBS 10 2 (1 ) (3 ) - 8 CLOs 551 - 2 78 (586 ) 45 Hybrid and redeemable preferred securities 94 - (5 ) - - 89 Equity AFS securities 164 - 2 4 - 170 Trading securities 73 2 1 (1 ) (10 ) 65 Derivative investments 555 (258 ) 171 (45 ) - 423 Other investments (4) - 1 - - - 1 Other assets – GLB ceded embedded derivatives (5) 268 271 - - - 539 Future contract benefits – indexed annuity and IUL contracts embedded derivatives (5) (1,100 ) (12 ) - 10 - (1,102 ) VIEs’ liabilities – derivative instruments (5) (4 ) 4 - - - - Other liabilities: Credit default swaps (4) (9 ) (7 ) - - - (16 ) GLB direct embedded derivatives (5) (953 ) (1,505 ) - - - (2,458 ) Total, net $ 1,799 $ (1,502 ) $ 234 $ 228 $ (370 ) $ 389 (1) The changes in fair value of the interest rate swaps are offset by an adjustment to derivative investments (see Note 5). (2) Transfers into or out of Level 3 for AFS and trading securities are displayed at amortized cost as of the beginning-of-period . For AFS and trading securities, the diff erence between beginning-of-period amor tized cost and beginning-of-period fair value was included in OCI and earnings, respectively, in the prior period. (3) 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). (4) 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). (5) Gains (losses) from sales, maturities, settlements and calls are included in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). |
Schedule Of Investment Holdings Movements | For the Three Months Ended June 30, 2017 Issuances Sales Maturities Settlements Calls Total Investments: Fixed maturity AFS securities: Corporate bonds $ 162 $ (3 ) $ (25 ) $ (64 ) $ (13 ) $ 57 CMBS 14 - - - - 14 CLOs 13 - - - - 13 Equity AFS securities 1 - - - - 1 Derivative investments 48 (29 ) (99 ) - - (80 ) Future contract benefits – indexed annuity and IUL contracts embedded derivatives (13 ) - - 47 - 34 Total, net $ 225 $ (32 ) $ (124 ) $ (17 ) $ (13 ) $ 39 For the Three Months Ended June 30, 2016 Issuances Sales Maturities Settlements Calls Total Investments: Fixed maturity AFS securities: Corporate bonds $ 172 $ (8 ) $ - $ (46 ) $ - $ 118 ABS 15 - - (1 ) - 14 U.S. government bonds - - - 10 - 10 RMBS 15 - - - - 15 CMBS - (1 ) - (1 ) - (2 ) CLOs 40 - - - - 40 Derivative investments 45 (43 ) (31 ) - - (29 ) Future contract benefits – indexed annuity and IUL contracts embedded derivatives (19 ) - - 24 - 5 Total, net $ 268 $ (52 ) $ (31 ) $ (14 ) $ - $ 171 For the Six Months Ended June 30, 2017 Issuances Sales Maturities Settlements Calls Total Investments: Fixed maturity AFS securities: Corporate bonds $ 200 $ (65 ) $ (47 ) $ (127 ) $ (108 ) $ (147 ) RMBS 4 - - - - 4 CMBS 55 - - - - 55 CLOs 18 - - - - 18 Equity AFS securities 8 (2 ) - - - 6 Trading securities 2 (17 ) - (1 ) - (16 ) Derivative investments 95 265 (189 ) - - 171 Future contract benefits – indexed annuity and IUL contracts embedded derivatives (31 ) - - 86 - 55 Total, net $ 351 $ 181 $ (236 ) $ (42 ) $ (108 ) $ 146 For the Six Months Ended June 30, 2016 Issuances Sales Maturities Settlements Calls Total Investments: Fixed maturity AFS securities: Corporate bonds $ 289 $ - $ (3 ) $ (83 ) $ (57 ) $ 146 ABS 15 - - (1 ) - 14 U.S. government bonds - - - 10 - 10 RMBS 15 - - - - 15 CMBS - (1 ) - (2 ) - (3 ) CLOs 80 - - (2 ) - 78 Equity AFS securities 4 - - - - 4 Trading securities - - - (1 ) - (1 ) Derivative investments 85 (85 ) (45 ) - - (45 ) Future contract benefits – indexed annuity and IUL contracts embedded derivatives (45 ) - - 55 - 10 Total, net $ 443 $ (86 ) $ (48 ) $ (24 ) $ (57 ) $ 228 |
Changes In Unrealized Gains (Losses) Within Level 3 Financial Instruments Carried At Fair Value And Still Held | For the Three For the Six Months Ended Months Ended June 30, June 30, 2017 2016 2017 2016 Derivative investments $ (2 ) $ 216 $ (76 ) $ (177 ) Other investments - (1 ) - 1 Embedded derivatives: Indexed annuity and IUL contracts - (1 ) (15 ) (24 ) GLB 231 (409 ) 978 (1,233 ) VIEs’ liabilities – derivative instruments - - - 4 Credit default swaps - (3 ) - (7 ) Total, net (1) $ 229 $ (198 ) $ 887 $ (1,436 ) (1) Included in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). |
Components Of The Transfers In And Out Of Level 3 | For the Three For the Three Months Ended Months Ended June 30, 2017 June 30, 2016 Transfers Transfers Transfers Transfers Into Out of Into Out of Level 3 Level 3 Total Level 3 Level 3 Total Investments: Fixed maturity AFS securities: Corporate bonds $ 1 $ (2 ) $ (1 ) $ 165 $ (83 ) $ 82 ABS 15 (1 ) 14 4 - 4 CMBS 3 (41 ) (38 ) - - - CLOs - (73 ) (73 ) - (586 ) (586 ) State and municipal bonds - (1 ) (1 ) - - - Hybrid and redeemable preferred securities - (5 ) (5 ) - - - Trading securities - (3 ) (3 ) 1 (10 ) (9 ) Total, net $ 19 $ (126 ) $ (107 ) $ 170 $ (679 ) $ (509 ) For the Six For the Six Months Ended Months Ended June 30, 2017 June 30, 2016 Transfers Transfers Transfers Transfers Into Out of Into Out of Level 3 Level 3 Total Level 3 Level 3 Total Investments: Fixed maturity AFS securities: Corporate bonds $ 161 $ (31 ) $ 130 $ 329 $ (107 ) $ 222 ABS 15 (6 ) 9 4 - 4 U.S. government bonds 5 - 5 - - - CMBS 3 (45 ) (42 ) - - - CLOs 30 (88 ) (58 ) - (586 ) (586 ) State and municipal bonds 2 (1 ) 1 - - - Hybrid and redeemable preferred securities - (5 ) (5 ) - - - Trading securities 3 (3 ) - 1 (11 ) (10 ) Total, net $ 219 $ (179 ) $ 40 $ 334 $ (704 ) $ (370 ) |
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 $ 1,885 Discounted cash flow Liquidity/duration adjustment (1) 0.7 % - 41.9 % ABS 25 Discounted cash flow Liquidity/duration adjustment (1) 3.0 % - 3.0 % Foreign government bonds 78 Discounted cash flow Liquidity/duration adjustment (1) 1.8 % - 3.6 % Hybrid and redeemable preferred securities 4 Discounted cash flow Liquidity/duration adjustment (1) 1.9 % - 1.9 % Equity AFS securities 25 Discounted cash flow Liquidity/duration adjustment (1) 4.5 % - 5.0 % Other assets – GLB direct and ceded embedded derivatives 383 Discounted cash flow Long-term lapse rate (2) 1 % - 30 % Utilization of guaranteed withdrawals (3) 85 % - 100 % Claims utilization factor (4) 60 % - 100 % Premiums utilization factor (4) 80 % - 115 % NPR (5) 0.01 % - 0.33 % Mortality rate (6) (8) Volatility (7) 1 % - 29 % Liabilities Future contract benefits – indexed annuity and IUL contracts embedded derivatives $ (1,268 ) Discounted cash flow Lapse rate (2) 1 % - 9 % Mortality rate (6) (8) (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) | 6 Months Ended |
Jun. 30, 2017 | |
Segment Information [Abstract] | |
Reconciliation Of Revenue From Segments To Consolidated | For the Three For the Six Months Ended Months Ended June 30, June 30, 2017 2016 2017 2016 Revenues Operating revenues: Annuities $ 1,076 $ 983 $ 2,138 $ 2,022 Retirement Plan Services 290 270 571 537 Life Insurance 1,655 1,538 3,260 3,016 Group Protection 541 525 1,082 1,059 Other Operations 67 79 155 161 Excluded realized gain (loss), pre-tax (52 ) (89 ) (132 ) (245 ) Amortization of deferred gain arising from reserve changes on business sold through reinsurance, pre-tax - 1 1 1 Amortization of DFEL associated with benefit ratio unlocking, pre-tax - - 2 - Total revenues $ 3,577 $ 3,307 $ 7,077 $ 6,551 |
Reconciliation Of Income (Loss) From Operations By Segment To Consolidated Net Income (Loss) | For the Three For the Six Months Ended Months Ended June 30, June 30, 2017 2016 2017 2016 Net Income (Loss) Income (loss) from operations: Annuities $ 251 $ 235 $ 532 $ 453 Retirement Plan Services 37 31 74 61 Life Insurance 133 120 263 195 Group Protection 35 15 42 20 Other Operations (37 ) (28 ) (51 ) (39 ) Excluded realized gain (loss), after-tax (34 ) (57 ) (85 ) (159 ) Income (loss) from reserve changes (net of related amortization) on business sold through reinsurance, after-tax - - - 1 Benefit ratio unlocking, after-tax 26 9 71 4 Net income (loss) $ 411 $ 325 $ 846 $ 536 |
New Accounting Standards (Narra
New Accounting Standards (Narrative) (Details) $ in Billions | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Accounting Standards Update 2014-09 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Other fee income and other revenue within the scope of ASU 2014-09 | $ 1 |
Variable Interest Entities ("30
Variable Interest Entities ("VIE's") (CLN Structures Summary Information ) (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2017USD ($) | |
Credit Linked Note Structure December 2006 [Member] | |
Credit Linked Notes Structures Summary Information [Line Items] | |
Amount of Issuance | $ 400 |
Maturity | Dec. 20, 2016 |
Credit Linked Note Structure April 2007 [Member] | |
Credit Linked Notes Structures Summary Information [Line Items] | |
Amount of Issuance | $ 200 |
Maturity | Mar. 20, 2017 |
Variable Interest Entities ("31
Variable Interest Entities ("VIE's") (Narrative) (Details) | 6 Months Ended | ||
Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Dec. 31, 2016USD ($)contract | |
Variable Interest Entity [Line Items] | |||
Carrying Amounts of our Investments in LPs and LLCs, As Recognized In Other Investments on our Consolidated Balance Sheets | $ 2,156,000,000 | $ 2,230,000,000 | |
Income Tax Credits And Other Tax Benefits From Qualified Affordable Housing Projects | 2,000,000 | $ 2,000,000 | |
Number of Instruments, Liabilities | contract | 1 | ||
Notional Amounts, Liabilities | $ 0 | ||
Carrying Value, Liabilities | 0 | 0 | |
Limited Partnerships and Limited Liability Companies [Member] | |||
Variable Interest Entity [Line Items] | |||
Carrying Amounts of our Investments in LPs and LLCs, As Recognized In Other Investments on our Consolidated Balance Sheets | 1,400,000,000 | 1,300,000,000 | |
Carrying Amount Of Investments In Qualified Affordable Housing Projects | $ 34,000,000 | $ 37,000,000 |
Variable Interest Entities ("32
Variable Interest Entities ("VIE's") (Consolidated Variable Interest Entity Asset and Liability Information) (Details) $ in Millions | Jun. 30, 2017USD ($)item | Dec. 31, 2016USD ($)item | |
Disclosure Of Variable Interest Entities Assets And Liabilities [Line Items] | |||
Number of Instruments, Assets | item | 1 | 2 | |
Notional Amounts, Assets | $ 542 | $ 733 | |
Carrying Value, Assets | $ 200 | ||
Total Return Swap [Member] | |||
Disclosure Of Variable Interest Entities Assets And Liabilities [Line Items] | |||
Number of Instruments, Assets | item | 1 | 1 | |
Notional Amounts, Assets | $ 542 | $ 533 | |
Carrying Value, Assets | |||
Credit default swaps [Member] | |||
Disclosure Of Variable Interest Entities Assets And Liabilities [Line Items] | |||
Number of Instruments, Assets | item | 1 | ||
Notional Amounts, Assets | $ 200 | ||
Carrying Value, Assets | |||
Fixed maturity securities [Member] | Asset-backed credit card loans [Member] | |||
Disclosure Of Variable Interest Entities Assets And Liabilities [Line Items] | |||
Number of Instruments, Assets | item | [1] | ||
Notional Amounts, Assets | [1] | ||
Carrying Value, Assets | [1] | $ 200 | |
[1] | Reported in variable interest entities' fixed maturity securities on our Consolidated Balance Sheets. |
Variable Interest Entities ("33
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 [Member] - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | ||
Consolidated Variable Interest Entity Settlement Payments And Mark To Market Adjustments [Line Items] | |||||
Gains (losses) for consolidated variable interest entities | [1] | $ (1) | $ 5 | ||
Credit default swaps [Member] | |||||
Consolidated Variable Interest Entity Settlement Payments And Mark To Market Adjustments [Line Items] | |||||
Gains (losses) for consolidated variable interest entities | (1) | 5 | |||
Contingent forwards [Member] | |||||
Consolidated Variable Interest Entity Settlement Payments And Mark To Market Adjustments [Line Items] | |||||
Gains (losses) for consolidated variable interest entities | |||||
[1] | Reported in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). |
Investments (Narrative) (Detail
Investments (Narrative) (Details) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017USD ($)item | Dec. 31, 2016USD ($)item | |
Investment [Line Items] | ||
Increase (decrease) in gross AFS securities unrealized losses | $ (548) | |
Number of partnerships in alternative investment portfolio | item | 206 | 202 |
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 | $ 177 | |
Securities that have been re-pledged | 80 | |
Investment commitments | 1,700 | |
Investment commitments for limited partnerships | 794 | |
Investment commitments for mortgage loans on real estate | 443 | |
Investment commitments for private placements | $ 466 | |
California [Member] | ||
Investment [Line Items] | ||
Largest mortgage loan concentration in geographic region | 20.00% | 20.00% |
Texas [Member] | ||
Investment [Line Items] | ||
Largest mortgage loan concentration in geographic region | 11.00% | 11.00% |
Federal Home Loan Mortgage Corporation [Member] | ||
Investment [Line Items] | ||
Fair value | $ 1,400 | $ 1,500 |
Federal Home Loan Mortgage Corporation [Member] | Invested Assets [Member] | ||
Investment [Line Items] | ||
Concentration risk, percentage | 1.00% | 1.00% |
Fannie Mae [Member] | ||
Investment [Line Items] | ||
Fair value | $ 1,000 | $ 1,100 |
Fannie Mae [Member] | Invested Assets [Member] | ||
Investment [Line Items] | ||
Concentration risk, percentage | 1.00% | 1.00% |
Consumer Non-Cyclical Industry [Member] | ||
Investment [Line Items] | ||
Fair value | $ 14,700 | $ 13,700 |
Consumer Non-Cyclical Industry [Member] | Invested Assets [Member] | ||
Investment [Line Items] | ||
Concentration risk, percentage | 13.00% | 13.00% |
Utilities Industry [Member] | ||
Investment [Line Items] | ||
Fair value | $ 13,800 | $ 13,200 |
Utilities Industry [Member] | Invested Assets [Member] | ||
Investment [Line Items] | ||
Concentration risk, percentage | 12.00% | 12.00% |
Corporate bonds [Member] | ||
Investment [Line Items] | ||
Percentage of fair value rated as investment grade | 96.00% | 95.00% |
Amortized cost of portfolio rated below investment grade | $ 3,500 | $ 3,800 |
Fair value of portfolio rated below investment grade | $ 3,400 | $ 3,700 |
ABS [Member] | ||
Investment [Line Items] | ||
Percentage of fair value rated as investment grade | 96.00% | 96.00% |
Amortized cost of portfolio rated below investment grade | $ 86 | $ 91 |
Fair value of portfolio rated below investment grade | $ 73 | $ 75 |
MBS [Member] | ||
Investment [Line Items] | ||
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% | 100.00% |
Severity of first lien loans | 30.00% | 30.00% |
Investments (Reconciliation Of
Investments (Reconciliation Of Available-For-Sale Securities From Cost Basis To Fair Value) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 | |
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | |||
Amortized cost | $ 86,456 | $ 84,747 | |
Gross unrealized gains | 7,384 | 5,851 | |
Gross unrealized losses | 601 | 1,139 | |
Gross unrealized OTTI | [1] | (50) | (29) |
Fair value | 93,289 | 89,488 | |
Equity AFS securities [Member] | |||
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | |||
Amortized cost | 262 | 260 | |
Gross unrealized gains | 19 | 19 | |
Gross unrealized losses | 6 | 4 | |
Fair value | 275 | 275 | |
Fixed maturity AFS securities [Member] | |||
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | |||
Amortized cost | 86,194 | 84,487 | |
Gross unrealized gains | 7,365 | 5,832 | |
Gross unrealized losses | 595 | 1,135 | |
Gross unrealized OTTI | [1] | (50) | (29) |
Fair value | 93,014 | 89,213 | |
Corporate bonds [Member] | Fixed maturity AFS securities [Member] | |||
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | |||
Amortized cost | 74,934 | 73,275 | |
Gross unrealized gains | 6,108 | 4,754 | |
Gross unrealized losses | 500 | 970 | |
Gross unrealized OTTI | [1] | (6) | (5) |
Fair value | 80,548 | 77,064 | |
ABS [Member] | Fixed maturity AFS securities [Member] | |||
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | |||
Amortized cost | 996 | 1,047 | |
Gross unrealized gains | 46 | 39 | |
Gross unrealized losses | 12 | 14 | |
Gross unrealized OTTI | [1] | (20) | (13) |
Fair value | 1,050 | 1,085 | |
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 | 536 | 384 | |
Gross unrealized gains | 44 | 37 | |
Gross unrealized losses | 2 | 2 | |
Fair value | 578 | 419 | |
Foreign government bonds [Member] | Fixed maturity AFS securities [Member] | |||
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | |||
Amortized cost | 397 | 449 | |
Gross unrealized gains | 58 | 58 | |
Gross unrealized losses | 1 | ||
Fair value | 455 | 506 | |
RMBS [Member] | Fixed maturity AFS securities [Member] | |||
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | |||
Amortized cost | 3,412 | 3,534 | |
Gross unrealized gains | 160 | 147 | |
Gross unrealized losses | 38 | 73 | |
Gross unrealized OTTI | [1] | (18) | (6) |
Fair value | 3,552 | 3,614 | |
CMBS [Member] | Fixed maturity AFS securities [Member] | |||
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | |||
Amortized cost | 466 | 345 | |
Gross unrealized gains | 10 | 8 | |
Gross unrealized losses | 2 | 4 | |
Gross unrealized OTTI | [1] | (2) | (1) |
Fair value | 476 | 350 | |
CLOs [Member] | Fixed maturity AFS securities [Member] | |||
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | |||
Amortized cost | 697 | 742 | |
Gross unrealized gains | 4 | 1 | |
Gross unrealized losses | 2 | 3 | |
Gross unrealized OTTI | [1] | (4) | (4) |
Fair value | 703 | 744 | |
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 | 4,172 | 3,929 | |
Gross unrealized gains | 850 | 718 | |
Gross unrealized losses | 12 | 20 | |
Fair value | 5,010 | 4,627 | |
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 | 584 | 582 | |
Gross unrealized gains | 85 | 70 | |
Gross unrealized losses | 27 | 48 | |
Fair value | $ 642 | 604 | |
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 | 200 | ||
Fair value | $ 200 | ||
[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 | Jun. 30, 2017 | Dec. 31, 2016 |
Available-for-sale Securities, Debt Maturities, Amortized Cost | ||
Amortized cost | $ 86,456 | $ 84,747 |
Available-for-sale Securities, Debt Maturities, Fair Value | ||
Fair Value | 93,289 | 89,488 |
Fixed maturity AFS securities [Member] | ||
Available-for-sale Securities, Debt Maturities, Amortized Cost | ||
Amortized cost | 86,194 | 84,487 |
Available-for-sale Securities, Debt Maturities, Fair Value | ||
Fair Value | 93,014 | $ 89,213 |
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 | 3,559 | |
Due after one year through five years | 16,854 | |
Due after five years through ten years | 15,756 | |
Due after ten years | 44,454 | |
Amortized cost | 80,623 | |
Available-for-sale Securities, Debt Maturities, Fair Value | ||
Due in one year or less | 3,750 | |
Due after one year through five years | 18,006 | |
Due after five years through ten years | 16,742 | |
Due after ten years | 48,735 | |
Fair Value | 87,233 | |
Structured securities [Member] | Fixed maturity AFS securities [Member] | ||
Available-for-sale Securities, Debt Maturities, Amortized Cost | ||
Amortized cost | 5,571 | |
Available-for-sale Securities, Debt Maturities, Fair Value | ||
Fair Value | $ 5,781 |
Investments (Fair Value And Gro
Investments (Fair Value And Gross Unrealized Losses In A Continuous Unrealized Loss Position) (Details) $ in Millions | Jun. 30, 2017USD ($)security | Dec. 31, 2016USD ($)security |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ||
Less Than or Equal to Twelve Months | $ 10,065 | $ 17,813 |
Greater Than Twelve Months | 3,063 | 4,155 |
Continuous Unrealized Loss Position, Total | 13,128 | 21,968 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ||
Less Than or Equal to Twelve Months | 279 | 659 |
Greater Than Twelve Months | 339 | 507 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | $ 618 | $ 1,166 |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | security | 1,155 | 1,744 |
Equity AFS securities [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ||
Less Than or Equal to Twelve Months | $ 10 | $ 4 |
Greater Than Twelve Months | 15 | 44 |
Continuous Unrealized Loss Position, Total | 25 | 48 |
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 | 1 | 2 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 5 | 4 |
Fixed maturity securities [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ||
Less Than or Equal to Twelve Months | 10,055 | 17,809 |
Greater Than Twelve Months | 3,048 | 4,111 |
Continuous Unrealized Loss Position, Total | 13,103 | 21,920 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ||
Less Than or Equal to Twelve Months | 275 | 657 |
Greater Than Twelve Months | 338 | 505 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 613 | 1,162 |
Corporate bonds [Member] | Fixed maturity securities [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ||
Less Than or Equal to Twelve Months | 8,521 | 15,820 |
Greater Than Twelve Months | 2,417 | 3,187 |
Continuous Unrealized Loss Position, Total | 10,938 | 19,007 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ||
Less Than or Equal to Twelve Months | 223 | 569 |
Greater Than Twelve Months | 279 | 403 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 502 | 972 |
ABS [Member] | Fixed maturity securities [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ||
Less Than or Equal to Twelve Months | 84 | 201 |
Greater Than Twelve Months | 260 | 298 |
Continuous Unrealized Loss Position, Total | 344 | 499 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ||
Less Than or Equal to Twelve Months | 3 | 4 |
Greater Than Twelve Months | 21 | 25 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 24 | 29 |
U.S. government bonds [Member] | Fixed maturity securities [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ||
Less Than or Equal to Twelve Months | 172 | 18 |
Continuous Unrealized Loss Position, Total | 172 | 18 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ||
Less Than or Equal to Twelve Months | 2 | 2 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 2 | 2 |
Foreign government bonds [Member] | Fixed maturity securities [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ||
Less Than or Equal to Twelve Months | 29 | |
Continuous Unrealized Loss Position, Total | 29 | |
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 securities [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ||
Less Than or Equal to Twelve Months | 805 | 989 |
Greater Than Twelve Months | 146 | 392 |
Continuous Unrealized Loss Position, Total | 951 | 1,381 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ||
Less Than or Equal to Twelve Months | 35 | 58 |
Greater Than Twelve Months | 5 | 23 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 40 | 81 |
CMBS [Member] | Fixed maturity securities [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ||
Less Than or Equal to Twelve Months | 92 | 190 |
Greater Than Twelve Months | 8 | 19 |
Continuous Unrealized Loss Position, Total | 100 | 209 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ||
Less Than or Equal to Twelve Months | 2 | 4 |
Greater Than Twelve Months | 2 | 2 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 4 | 6 |
CLOs [Member] | Fixed maturity securities [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ||
Less Than or Equal to Twelve Months | 227 | 259 |
Greater Than Twelve Months | 19 | 25 |
Continuous Unrealized Loss Position, Total | 246 | 284 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ||
Less Than or Equal to Twelve Months | 2 | 3 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 2 | 3 |
State and municipal bonds [Member] | Fixed maturity securities [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ||
Less Than or Equal to Twelve Months | 132 | 227 |
Greater Than Twelve Months | 47 | 47 |
Continuous Unrealized Loss Position, Total | 179 | 274 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ||
Less Than or Equal to Twelve Months | 7 | 12 |
Greater Than Twelve Months | 5 | 8 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 12 | 20 |
Hybrid and redeemable preferred securities [Member] | Fixed maturity securities [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ||
Less Than or Equal to Twelve Months | 22 | 76 |
Greater Than Twelve Months | 151 | 143 |
Continuous Unrealized Loss Position, Total | 173 | 219 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ||
Less Than or Equal to Twelve Months | 1 | 4 |
Greater Than Twelve Months | 26 | 44 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | $ 27 | $ 48 |
Investments (Schedule Of Availa
Investments (Schedule Of Available-For-Sale Securities Whose Value Is Below Amortized Cost) (Details) $ in Millions | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2017USD ($)security | Dec. 31, 2016USD ($)security | ||
Schedule of Available-for-sale Securities [Line Items] | |||
Fair Value - Nine months or greater, but less than twelve months | $ 10,065 | $ 17,813 | |
Fair Value - Twelve months or greater | 3,063 | 4,155 | |
Fair Value - Total | 13,128 | 21,968 | |
Fair Value | 93,289 | 89,488 | |
Losses - Nine months or greater, but less than twelve months | 279 | 659 | |
Losses - Twelve months or greater | 339 | 507 | |
Losses - Total | $ 618 | $ 1,166 | |
Number of Securities - Total | security | 1,155 | 1,744 | |
Fair Value Decline, Greater Than 20% [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Fair Value - Less than six months | $ 64 | $ 174 | |
Fair Value - Six months or greater, but less than nine months | 41 | ||
Fair Value - Nine months or greater, but less than twelve months | 2 | 1 | |
Fair Value - Twelve months or greater | 253 | 364 | |
Fair Value - Total | 360 | 539 | |
Losses - Less than six months | 26 | 52 | |
Losses - Six months or greater, but less than nine months | 14 | ||
Losses - Nine months or greater, but less than twelve months | 1 | 1 | |
Losses - Twelve months or greater | 110 | 167 | |
Losses - Total | 151 | 220 | |
OTTI - Less than six months | 2 | ||
OTTI - Nine months or greater, but less than twelve months | 1 | ||
OTTI - Twelve months or greater | 9 | 10 | |
OTTI - Total | $ 10 | $ 12 | |
Number of Securities - Less than six months | security | [1] | 21 | 19 |
Number of Securities - Six months or greater, but less than nine months | security | [1] | 5 | |
Number of Securities - Nine months or greater, but less than twelve months | security | [1] | 3 | 2 |
Number of Securities - Twelve months or greater | security | [1] | 51 | 62 |
Number of Securities - Total | security | [1] | 80 | 83 |
[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 | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Investments [Abstract] | ||||
Balance as of beginning of period | $ 393 | $ 413 | $ 430 | $ 382 |
Increases attributable to: | ||||
Credit losses on securities for which an OTTI was not previously recognized | 4 | 26 | 5 | 61 |
Credit losses on securities for which an OTTI was previously recognized | 2 | 3 | 7 | |
Decreases attributable to: | ||||
Securities sold, paid down or matured | (7) | (10) | (48) | (19) |
Balance as of end of period | $ 390 | $ 431 | $ 390 | $ 431 |
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 | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2017 | Dec. 31, 2016 | Mar. 31, 2017 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||||||
Amortized Cost | $ 542 | $ 666 | ||||
Net Unrealized Gain/(Loss) Position | 50 | 29 | ||||
Fair Value | 592 | 695 | ||||
OTTI in Credit Losses | 390 | 430 | $ 393 | $ 431 | $ 413 | $ 382 |
Corporate bonds [Member] | ||||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||||||
Amortized Cost | 22 | 80 | ||||
Net Unrealized Gain/(Loss) Position | 6 | 5 | ||||
Fair Value | 28 | 85 | ||||
OTTI in Credit Losses | 43 | 77 | ||||
ABS [Member] | ||||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||||||
Amortized Cost | 199 | 212 | ||||
Net Unrealized Gain/(Loss) Position | 20 | 13 | ||||
Fair Value | 219 | 225 | ||||
OTTI in Credit Losses | 112 | 112 | ||||
RMBS [Member] | ||||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||||||
Amortized Cost | 292 | 332 | ||||
Net Unrealized Gain/(Loss) Position | 18 | 6 | ||||
Fair Value | 310 | 338 | ||||
OTTI in Credit Losses | 188 | 194 | ||||
CMBS [Member] | ||||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||||||
Amortized Cost | 18 | 29 | ||||
Net Unrealized Gain/(Loss) Position | 2 | 1 | ||||
Fair Value | 20 | 30 | ||||
OTTI in Credit Losses | 39 | 39 | ||||
CLOs [Member] | ||||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||||||
Amortized Cost | 11 | 11 | ||||
Net Unrealized Gain/(Loss) Position | 4 | 4 | ||||
Fair Value | 15 | 15 | ||||
OTTI in Credit Losses | 5 | 5 | ||||
State and municipal bonds [Member] | ||||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||||||
Amortized Cost | 2 | |||||
Fair Value | 2 | |||||
OTTI in Credit Losses | $ 3 | $ 3 |
Investments (Composition Of Cur
Investments (Composition Of Current And Past Due Mortgage Loans On Real Estate) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 |
Mortgage Loans On Real Estate Aging [Abstract] | ||||||
Current | $ 10,023 | $ 9,888 | ||||
Greater than 90 days past due | 2 | 2 | ||||
Valuation allowance associated with impaired mortgage loans on real estate | (2) | $ (2) | (2) | $ (2) | $ (2) | $ (2) |
Unamortized premium (discount) | 1 | |||||
Total carrying value | $ 10,023 | $ 9,889 |
Investments (Schedule Of Impair
Investments (Schedule Of Impaired Mortgage Loans) (Details) $ in Millions | Jun. 30, 2017USD ($)item | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($)item | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Information about impaired mortgage loans on real estate | ||||||
Number of impaired mortgage loans on real estate | item | 2 | 2 | ||||
Principal balance of impaired mortgage loans on real estate | $ 7 | $ 7 | ||||
Valuation allowance associated with impaired mortgage loans on real estate | (2) | $ (2) | (2) | $ (2) | $ (2) | $ (2) |
Carrying value of impaired mortgage loans on real estate | $ 5 | $ 5 |
Investments (Changes In The Val
Investments (Changes In The Valuation Allowance Of Impaired Mortgage Loans On Real Estate (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Allowance for Losses | ||||
Balance as of beginning-of-period | $ 2 | $ 2 | $ 2 | $ 2 |
Additions | ||||
Charge-offs, net of recoveries | ||||
Balance as of end-of-period | $ 2 | $ 2 | $ 2 | $ 2 |
Investments (Average Carrying V
Investments (Average Carrying Value On The Impaired Mortgage Loans On Real Estate) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Information about impaired mortgage loans on real estate | ||||
Average carrying value for impaired mortgage loans on real estate | $ 5 | $ 6 | $ 5 | $ 6 |
Investments (Credit Quality Ind
Investments (Credit Quality Indicators For Mortgage Loans) (Details) $ in Millions | Jun. 30, 2017USD ($) | Dec. 31, 2016USD ($) |
Mortgage Loans Credit Quality [Line Items] | ||
Carrying value of mortgage loans on real estate | $ 10,023 | $ 9,889 |
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] | ||
Carrying value of mortgage loans on real estate | $ 8,993 | $ 8,709 |
Percentage of total mortgage loans on real estate | 89.70% | 88.00% |
Debt-service coverage ratio | 2.22 | 2.16 |
Loan-to-value ratio, 65% to 74% [Member] | ||
Mortgage Loans Credit Quality [Line Items] | ||
Carrying value of mortgage loans on real estate | $ 892 | $ 1,009 |
Percentage of total mortgage loans on real estate | 8.90% | 10.20% |
Debt-service coverage ratio | 1.89 | 1.87 |
Loan-to-value ratio, 75% to 100% [Member] | ||
Mortgage Loans Credit Quality [Line Items] | ||
Carrying value of mortgage loans on real estate | $ 133 | $ 166 |
Percentage of total mortgage loans on real estate | 1.30% | 1.70% |
Debt-service coverage ratio | 0.82 | 0.82 |
Loan-To-Value Ratio, Greater Than 100% [Member] | ||
Mortgage Loans Credit Quality [Line Items] | ||
Carrying value of mortgage loans on real estate | $ 5 | $ 5 |
Percentage of total mortgage loans on real estate | 0.10% | 0.10% |
Debt-service coverage ratio | 1.04 | 1.04 |
Investments (Realized Gain (Los
Investments (Realized Gain (Loss) Related To Certain Investments) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | ||
Realized gain (loss) related to certain investments | |||||
Gain (loss) on other investments | $ (2) | $ (3) | $ (5) | $ (63) | |
Associated amortization of DAC, VOBA, DSI and DFEL and changes in other contract holder funds | (6) | (5) | (13) | (8) | |
Total realized gain (loss) related to certain investments, pre-tax | [1] | (18) | (65) | (31) | (172) |
Fixed maturity AFS securities [Member] | |||||
Realized gain (loss) related to certain investments | |||||
AFS securities. Gross gains | [2] | 3 | 7 | 11 | 61 |
AFS securities. Gross losses | [2] | (13) | (65) | (25) | (163) |
Equity AFS securities [Member] | |||||
Realized gain (loss) related to certain investments | |||||
AFS securities. Gross gains | 2 | 1 | 2 | ||
AFS securities. Gross losses | $ (1) | $ (1) | |||
[1] | See "Realized Gain (Loss) Related to Certain Investments" section in Note 4. | ||||
[2] | These amounts are represented net of related fair value hedging activity. See Note 5 for more information. |
Investments (OTTI Recognized In
Investments (OTTI Recognized In Net Income (Loss) And OCI) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
OTTI Recognized in Net Income (Loss) | ||||
Gross OTTI recognized in net income (loss) | $ (4) | $ (29) | $ (8) | $ (69) |
Associated amortization of DAC, VOBA, DSI and DFEL | 1 | 5 | ||
Net OTTI recognized in net income (loss), pre-tax | (4) | (28) | (8) | (64) |
Portion of OTTI Recognized in OCI | ||||
Gross OTTI recognized in OCI | 10 | 36 | ||
Change in DAC, VOBA, DSI and DFEL | (2) | (8) | ||
Net portion of OTTI recognized in OCI, pre-tax | 8 | 28 | ||
Equity AFS securities [Member] | ||||
OTTI Recognized in Net Income (Loss) | ||||
Gross OTTI recognized in net income (loss) | (1) | (1) | ||
Fixed maturity securities [Member] | ||||
OTTI Recognized in Net Income (Loss) | ||||
Gross OTTI recognized in net income (loss) | (4) | (28) | (8) | (68) |
Fixed maturity securities [Member] | Corporate bonds [Member] | ||||
OTTI Recognized in Net Income (Loss) | ||||
Gross OTTI recognized in net income (loss) | $ (4) | (26) | (5) | (62) |
Fixed maturity securities [Member] | ABS [Member] | ||||
OTTI Recognized in Net Income (Loss) | ||||
Gross OTTI recognized in net income (loss) | (1) | (1) | (3) | |
Fixed maturity securities [Member] | RMBS [Member] | ||||
OTTI Recognized in Net Income (Loss) | ||||
Gross OTTI recognized in net income (loss) | $ (1) | (1) | $ (3) | |
Fixed maturity securities [Member] | State and municipal bonds [Member] | ||||
OTTI Recognized in Net Income (Loss) | ||||
Gross OTTI recognized in net income (loss) | $ (1) |
Investments (Payables For Colla
Investments (Payables For Collateral On Investments) (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2017 | Dec. 31, 2016 | ||
Carrying Value Of Payables For Collateral On Investments [Abstract] | |||
Collateral payable for derivative investments | [1] | $ 1,054 | $ 894 |
Securities pledged under securities lending agreements | [2] | 208 | 216 |
Securities pledged under repurchase agreements | [3] | 540 | 535 |
Investments pledged for Federal Home Loan Bank of Indianapolis ('FHLBI') | [4] | 3,150 | 3,350 |
Total payables for collateral on investments | 4,952 | 4,995 | |
Fair Value Of Related Investments Or Collateral [Abstract] | |||
Collateral payable for derivative investments | [1] | 1,054 | 894 |
Securities pledged under securities lending agreements | [2] | 200 | 209 |
Securities pledged under repurchase agreements | [3] | 587 | 589 |
Investments pledged for Federal Home Loan Bank of Indianapolis('FHLBI') | [4] | 4,654 | 4,947 |
Total payables for collateral on investments | $ 6,495 | $ 6,639 | |
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% | ||
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% | ||
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% | ||
[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 5 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 | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Increase (decrease) in payables for collateral on investments | ||
Collateral payable for derivative investments | $ 160 | $ 1,617 |
Securities pledged under securities lending agreements | (8) | 7 |
Securities pledged under repurchase agreements | 5 | 16 |
Investments pledged for FHLBI | (200) | |
Total increase (decrease) in payables for collateral on investments | $ (43) | $ 1,640 |
Investments (Schedule of Securi
Investments (Schedule of Securities Pledged by Contractual Maturity) (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2017 | Dec. 31, 2016 | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Repurchase Agreements | $ 540 | $ 535 | |
Securities Lending | [1] | 208 | 216 |
Total gross secured borrowings | 748 | 751 | |
Corporate bonds [Member] | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Repurchase Agreements | 540 | 535 | |
Securities Lending | 208 | 212 | |
Foreign government bonds [Member] | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Securities Lending | 4 | ||
Overnight and Continuous [Member] | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Securities Lending | 208 | 216 | |
Total gross secured borrowings | 208 | 216 | |
Overnight and Continuous [Member] | Corporate bonds [Member] | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Securities Lending | 208 | 212 | |
Overnight and Continuous [Member] | Foreign government bonds [Member] | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Securities Lending | 4 | ||
Up to 30 days [Member] | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Repurchase Agreements | 100 | ||
Total gross secured borrowings | 100 | ||
Up to 30 days [Member] | Corporate bonds [Member] | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Repurchase Agreements | 100 | ||
30 to 90 Days [Member] | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Repurchase Agreements | 290 | 389 | |
Total gross secured borrowings | 290 | 389 | |
30 to 90 Days [Member] | Corporate bonds [Member] | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Repurchase Agreements | 290 | 389 | |
Greater than 90 days [Member] | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Repurchase Agreements | 150 | 146 | |
Total gross secured borrowings | 150 | 146 | |
Greater than 90 days [Member] | Corporate bonds [Member] | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Repurchase Agreements | $ 150 | $ 146 | |
[1] | 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) - USD ($) | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | $ 6,000,000 | |
Cash flow hedge, reclassified to earnings, net | 0 | $ 0 |
Exposure Associated With Collateralization Events | 4,000,000 | |
Maximum [Member] | ||
Collateral Requirement If Netting Agreements Not In Place | 1,000,000 | |
Non-performance Risk Adjustment | $ 1,000,000 |
Derivative Instruments (Outstan
Derivative Instruments (Outstanding Derivative Instruments With Off-Balance-Sheet Risks) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 | |
Outstanding derivative instruments with off-balance-sheet risks | |||
Notional Amounts | $ 114,993 | ||
Interest rate contracts [Member] | |||
Outstanding derivative instruments with off-balance-sheet risks | |||
Notional Amounts | [1] | 83,706 | |
Foreign currency contracts [Member] | |||
Outstanding derivative instruments with off-balance-sheet risks | |||
Notional Amounts | [2] | 1,520 | |
Equity market contracts [Member] | |||
Outstanding derivative instruments with off-balance-sheet risks | |||
Notional Amounts | 29,704 | ||
Credit contracts [Member] | |||
Outstanding derivative instruments with off-balance-sheet risks | |||
Notional Amounts | 63 | ||
Total Derivative Instruments [Member] | |||
Outstanding derivative instruments with off-balance-sheet risks | |||
Notional Amounts | 114,993 | $ 104,926 | |
Asset Fair Value | 2,019 | 2,005 | |
Liability Fair Value | 2,157 | 3,194 | |
Derivative investments [Member] | Interest rate contracts [Member] | Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments [Member] | |||
Outstanding derivative instruments with off-balance-sheet risks | |||
Notional Amounts | [3] | 78,622 | 70,290 |
Asset Fair Value | [3] | 766 | 985 |
Liability Fair Value | [3] | 151 | 701 |
Derivative investments [Member] | Foreign currency contracts [Member] | Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments [Member] | |||
Outstanding derivative instruments with off-balance-sheet risks | |||
Notional Amounts | [3] | 8 | 14 |
Derivative investments [Member] | Equity market contracts [Member] | Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments [Member] | |||
Outstanding derivative instruments with off-balance-sheet risks | |||
Notional Amounts | [3] | 29,704 | 28,315 |
Asset Fair Value | [3] | 529 | 541 |
Liability Fair Value | [3] | 390 | 616 |
Derivative investments [Member] | Credit contracts [Member] | Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments [Member] | |||
Outstanding derivative instruments with off-balance-sheet risks | |||
Notional Amounts | [3] | 63 | 66 |
Derivative investments [Member] | Cash flow hedges | Designated as Hedging Instrument [Member] | |||
Outstanding derivative instruments with off-balance-sheet risks | |||
Notional Amounts | 5,119 | 4,729 | |
Asset Fair Value | 163 | 221 | |
Liability Fair Value | 113 | 132 | |
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] | 3,607 | 3,552 |
Asset Fair Value | [3] | 47 | 68 |
Liability Fair Value | [3] | 92 | 122 |
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] | 1,512 | 1,177 |
Asset Fair Value | [3] | 116 | 153 |
Liability Fair Value | [3] | 21 | 10 |
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] | 1,477 | 1,512 |
Asset Fair Value | [3] | 263 | 258 |
Liability Fair Value | [3] | 182 | 182 |
Other assets [Member] | Embedded derivatives - GLB [Member] | Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments [Member] | |||
Outstanding derivative instruments with off-balance-sheet risks | |||
Asset Fair Value | [4] | 298 | |
Other liabilities [Member] | Embedded derivatives - GLB [Member] | Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments [Member] | |||
Outstanding derivative instruments with off-balance-sheet risks | |||
Liability Fair Value | [5] | 371 | |
Reinsurance related embedded derivatives [Member] | Embedded derivatives - Reinsurance related [Member] | Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments [Member] | |||
Outstanding derivative instruments with off-balance-sheet risks | |||
Liability Fair Value | [6] | 53 | 53 |
Future contract benefits [Member] | Indexed annuity and IUL contracts embedded derivatives [Member] | Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments [Member] | |||
Outstanding derivative instruments with off-balance-sheet risks | |||
Liability Fair Value | [7] | $ 1,268 | $ 1,139 |
[1] | As of June 30, 2017, 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 June 30, 2017, the latest maturity date for which we were hedging our exposure to the variability in future cash flows for these instruments was September 2049. | ||
[3] | Reported in derivative investments and other liabilities on our Consolidated Balance Sheets. | ||
[4] | Reported in other assets on our Consolidated Balance Sheets.Reported in other liabilities on our Consolidated Balance Sheets. | ||
[5] | Reported in other liabilities on our Consolidated Balance Sheets. | ||
[6] | Reported in reinsurance related embedded derivatives on our Consolidated Balance Sheets. | ||
[7] | 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) $ in Millions | 6 Months Ended | |
Jun. 30, 2017USD ($) | ||
Maturity of the notional amounts of derivative financial instruments | ||
Remaining Life Less Than 1 Year | $ 32,637 | |
Remaining Life - 1 - 5 Years | 32,367 | |
Remaining Life - 6 - 10 Years | 31,421 | |
Remaining Life - 11 - 30 Years | 15,903 | |
Remaining Life Over - 30 Years | 2,665 | |
Remaining Life - Total Years | 114,993 | |
Interest rate contracts [Member] | ||
Maturity of the notional amounts of derivative financial instruments | ||
Remaining Life Less Than 1 Year | 15,024 | [1] |
Remaining Life - 1 - 5 Years | 22,369 | [1] |
Remaining Life - 6 - 10 Years | 30,174 | [1] |
Remaining Life - 11 - 30 Years | 14,926 | [1] |
Remaining Life Over - 30 Years | 1,213 | [1] |
Remaining Life - Total Years | $ 83,706 | [1] |
Derivative maturity date | Apr. 1, 2067 | |
Foreign currency contracts [Member] | ||
Maturity of the notional amounts of derivative financial instruments | ||
Remaining Life Less Than 1 Year | $ 19 | [2] |
Remaining Life - 1 - 5 Years | 151 | [2] |
Remaining Life - 6 - 10 Years | 378 | [2] |
Remaining Life - 11 - 30 Years | 962 | [2] |
Remaining Life Over - 30 Years | 10 | [2] |
Remaining Life - Total Years | $ 1,520 | [2] |
Derivative maturity date | Sep. 1, 2049 | |
Equity market contracts [Member] | ||
Maturity of the notional amounts of derivative financial instruments | ||
Remaining Life Less Than 1 Year | $ 17,594 | |
Remaining Life - 1 - 5 Years | 9,784 | |
Remaining Life - 6 - 10 Years | 869 | |
Remaining Life - 11 - 30 Years | 15 | |
Remaining Life Over - 30 Years | 1,442 | |
Remaining Life - Total Years | 29,704 | |
Credit contracts [Member] | ||
Maturity of the notional amounts of derivative financial instruments | ||
Remaining Life Less Than 1 Year | ||
Remaining Life - 1 - 5 Years | 63 | |
Remaining Life - 6 - 10 Years | ||
Remaining Life - 11 - 30 Years | ||
Remaining Life Over - 30 Years | ||
Remaining Life - Total Years | $ 63 | |
[1] | As of June 30, 2017, 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 June 30, 2017, the latest maturity date for which we were hedging our exposure to the variability in future cash flows for these instruments was September 2049. |
Derivative Instruments (Change
Derivative Instruments (Change In Our Unrealized Gain On Derivative Instruments In Accumulated OCI) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | ||
Change in our unrealized gain on derivative instruments in accumulated OCI | |||||
Balance as of beginning-of-year | $ 1,566 | ||||
Income tax expense (benefit) | $ 122 | $ 89 | 162 | $ 114 | |
Balance as of end-of-period | 2,711 | 2,711 | |||
Unrealized Gain (Loss) on Derivative Instruments [Member] | |||||
Change in our unrealized gain on derivative instruments in accumulated OCI | |||||
Balance as of beginning-of-year | 49 | 132 | |||
Change in foreign currency exchange rate adjustment | (75) | 35 | |||
Change in DAC, VOBA, DSI and DFEL | (8) | (6) | |||
Income tax benefit (expense) | 13 | 62 | |||
Reclassification adjustment for gains (losses) included in net income (loss) | 7 | 9 | |||
Associated amortization of DAC, VOBA, DSI and DFEL | (2) | (1) | |||
Income tax expense (benefit) | (2) | (3) | |||
Balance as of end-of-period | $ 22 | $ 10 | 22 | 10 | |
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 | 1 | (240) | |||
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] | 2 | 4 | ||
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] | (9) | (2) | ||
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 | 45 | 32 | |||
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] | 9 | 3 | ||
Unrealized Gain (Loss) on Derivative Instruments [Member] | Cash flow hedges | Foreign currency contracts [Member] | Realized Gain (Loss) [Member] | |||||
Change in our unrealized gain on derivative instruments in accumulated OCI | |||||
Reclassification adjustment for gains (losses) included in net income (loss) | [3] | $ 5 | $ 4 | ||
[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). | ||||
[3] | The OCI offset is reported within realized gain (loss) 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 | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | ||
Gains (losses) | |||||
Gains (losses) | $ (96) | $ (259) | $ (165) | $ (640) | |
Designated as Hedging Instrument [Member] | Cash flow hedges | |||||
Gains (losses) | |||||
Gains (losses) | 2 | 7 | 9 | ||
Designated as Hedging Instrument [Member] | Fair value hedges | |||||
Gains (losses) | |||||
Gains (losses) | (8) | (31) | 2 | (85) | |
Designated as Hedging Instrument [Member] | Net Investment Income [Member] | Cash flow hedges | Interest rate contracts [Member] | |||||
Gains (losses) | |||||
Gains (losses) | [1] | 1 | 3 | 2 | 4 |
Designated as Hedging Instrument [Member] | Net Investment Income [Member] | Cash flow hedges | Foreign currency contracts [Member] | |||||
Gains (losses) | |||||
Gains (losses) | [1] | 4 | 1 | 9 | 3 |
Designated as Hedging Instrument [Member] | Net Investment Income [Member] | Fair value hedges | Interest rate contracts [Member] | |||||
Gains (losses) | |||||
Gains (losses) | [1] | (6) | (7) | (13) | (15) |
Designated as Hedging Instrument [Member] | Interest and Debt Expense [Member] | Cash flow hedges | Interest rate contracts [Member] | |||||
Gains (losses) | |||||
Gains (losses) | [2] | (5) | (2) | (9) | (2) |
Designated as Hedging Instrument [Member] | Interest and Debt Expense [Member] | Fair value hedges | Interest rate contracts [Member] | |||||
Gains (losses) | |||||
Gains (losses) | [2] | 7 | 8 | 15 | 16 |
Designated as Hedging Instrument [Member] | Realized Gain (Loss) [Member] | Cash flow hedges | Foreign currency contracts [Member] | |||||
Gains (losses) | |||||
Gains (losses) | [3] | 5 | 4 | ||
Designated as Hedging Instrument [Member] | Realized Gain (Loss) [Member] | Fair value hedges | Interest rate contracts [Member] | |||||
Gains (losses) | |||||
Gains (losses) | [3] | (9) | (32) | (86) | |
Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments [Member] | Realized Gain (Loss) [Member] | Interest rate contracts [Member] | |||||
Gains (losses) | |||||
Gains (losses) | [3] | 193 | 614 | 143 | 1,590 |
Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments [Member] | Realized Gain (Loss) [Member] | Foreign currency contracts [Member] | |||||
Gains (losses) | |||||
Gains (losses) | [3] | (2) | (7) | 1 | (3) |
Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments [Member] | Realized Gain (Loss) [Member] | Equity market contracts [Member] | |||||
Gains (losses) | |||||
Gains (losses) | [3] | (289) | (252) | (817) | (582) |
Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments [Member] | Realized Gain (Loss) [Member] | Credit contracts [Member] | |||||
Gains (losses) | |||||
Gains (losses) | [3] | (4) | (7) | ||
Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments [Member] | Realized Gain (Loss) [Member] | Embedded derivatives - GLB [Member] | |||||
Gains (losses) | |||||
Gains (losses) | [3] | 72 | (542) | 669 | (1,505) |
Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments [Member] | Realized Gain (Loss) [Member] | Embedded derivatives - Reinsurance related [Member] | |||||
Gains (losses) | |||||
Gains (losses) | [3] | (3) | (23) | (47) | |
Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments [Member] | Realized Gain (Loss) [Member] | Indexed annuity and IUL contracts embedded derivatives [Member] | |||||
Gains (losses) | |||||
Gains (losses) | [3] | (64) | (19) | (184) | (12) |
Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments [Member] | Commissions and other expenses [Member] | Equity market contracts [Member] | |||||
Gains (losses) | |||||
Gains (losses) | [4] | $ 5 | $ 3 | $ 14 | $ 2 |
[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 (Gains56
Derivative Instruments (Gains (Losses) On Derivative Instruments Designated As Cash Flow Hedges) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Gains (losses) on derivative instruments designated and qualifying as cash flow hedges | ||||
Offset to net investment income | $ 1,262 | $ 1,199 | $ 2,499 | $ 2,371 |
Offset to realized gain (loss) | (10) | (45) | (49) | (159) |
Offset to interest and debt expense | (63) | (68) | (127) | (136) |
Designated as Hedging Instrument [Member] | Cash flow hedges | Other Comprehensive Income (Loss) [Member] | ||||
Gains (losses) on derivative instruments designated and qualifying as cash flow hedges | ||||
Offset to net investment income | 5 | 4 | 11 | 7 |
Offset to realized gain (loss) | 5 | 4 | ||
Offset to interest and debt expense | $ (5) | $ (2) | $ (9) | $ (2) |
Derivative Instruments (Open Cr
Derivative Instruments (Open Credit Default Swap Liabilities) (Details) - Open Credit Default Swap Liabilities [Member] $ in Millions | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2017USD ($)item | Dec. 31, 2016USD ($)item | ||
Summary Of Credit Derivatives | |||
Number of instruments | item | 1 | 2 | |
Fair value | [1] | $ 1 | |
Maximum potential payout | $ 63 | $ 40 | |
3/20/2017 maturity | |||
Summary Of Credit Derivatives | |||
Credit rating of underlying obligation | [2] | BBB+ | |
Number of instruments | item | 2 | ||
Maximum potential payout | $ 40 | ||
6/20/2022 maturity | |||
Summary Of Credit Derivatives | |||
Credit rating of underlying obligation | [2] | BBB+ | |
Number of instruments | item | 1 | ||
Fair value | [1] | $ 1 | |
Maximum potential payout | $ 63 | ||
[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 | Jun. 30, 2017 | Dec. 31, 2016 |
Credit risk related contingent features collateral | ||
Maximum potential payout | $ 63 | $ 40 |
Less: Counterparty thresholds | ||
Maximum collateral potentially required to post | $ 63 | $ 40 |
Derivative Instruments (Schedul
Derivative Instruments (Schedule Of Collateral Amounts With Rights To Reclaim Or Obligation To Return Cash) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Credit Derivatives [Line Items] | ||
Collateral Posted by Counter-Party (Held by LNC) | $ 1,054 | $ 894 |
Collateral Posted by LNC (Held by Counter-Party) | (527) | (630) |
AA- [Member] | ||
Credit Derivatives [Line Items] | ||
Collateral Posted by Counter-Party (Held by LNC) | 96 | 53 |
Collateral Posted by LNC (Held by Counter-Party) | (32) | |
A+ [Member] | ||
Credit Derivatives [Line Items] | ||
Collateral Posted by Counter-Party (Held by LNC) | 39 | 10 |
Collateral Posted by LNC (Held by Counter-Party) | (235) | (217) |
A [Member] | ||
Credit Derivatives [Line Items] | ||
Collateral Posted by Counter-Party (Held by LNC) | 579 | 466 |
Collateral Posted by LNC (Held by Counter-Party) | (287) | (381) |
A- [Member] | ||
Credit Derivatives [Line Items] | ||
Collateral Posted by Counter-Party (Held by LNC) | 39 | 67 |
Collateral Posted by LNC (Held by Counter-Party) | ||
BBB+ [Member] | ||
Credit Derivatives [Line Items] | ||
Collateral Posted by Counter-Party (Held by LNC) | 301 | 298 |
Collateral Posted by LNC (Held by Counter-Party) | $ (5) |
Derivative Instruments (Balance
Derivative Instruments (Balance Sheet Offsetting) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Financial Assets | ||
Derivative Instruments, Gross amount of recognized assets | $ 1,600 | $ 1,470 |
Derivative Instruments, Gross amounts offset | (546) | (543) |
Derivative Instruments, Net amount of assets | 1,054 | 927 |
Derivative Instruments, Cash collateral | (1,054) | (894) |
Derivative Instruments, Net amount | 33 | |
Embedded Derivative Instruments, Gross amount of recognized assets | 298 | |
Embedded Derivative Instruments, Gross amounts offset | ||
Embedded Derivative Instruments, Net amount of assets | 298 | |
Embedded Derivative Instruments, Cash collateral | ||
Embedded Derivative Instruments, Net amount | 298 | |
Total, Gross amount of recognized assets | 1,898 | 1,470 |
Total, Gross amounts offset | (546) | (543) |
Total, Net amount of assets | 1,352 | 927 |
Total, Cash collateral | (1,054) | (894) |
Total, Net amount | 298 | 33 |
Financial Liabilities | ||
Derivative Instruments, Gross amount of recognized liabilities | 611 | 1,089 |
Derivative Instruments, Gross amounts offset | (121) | (536) |
Derivative Instruments, Net amount of liabilities | 490 | 553 |
Derivative Instruments, Cash collateral | (527) | (630) |
Derivative Instruments, Net amount | (37) | (77) |
Embedded Derivative Instruments, Gross amount of recognized liabilities | 1,321 | 1,563 |
Embedded Derivative Instruments, Gross amounts offset | ||
Embedded Derivative Instruments, Net amount of liabilities | 1,321 | 1,563 |
Embedded Derivative Instruments, Cash collateral | ||
Embedded Derivative Instruments, Net amount | 1,321 | 1,563 |
Total, Gross amount of recognized liabilities | 1,932 | 2,652 |
Total, Gross amounts offset | (121) | (536) |
Total, Net amount of liabilities | 1,811 | 2,116 |
Total, Cash collateral | (527) | (630) |
Total, Net amount | $ 1,284 | $ 1,486 |
Federal Income Taxes (Narrative
Federal Income Taxes (Narrative) (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Federal Income Taxes [Abstract] | ||||
Effective tax rate | 23.00% | 21.00% | 16.00% | 18.00% |
Federal rate | 35.00% | 35.00% | 35.00% | 35.00% |
Guaranteed Benefit Features (Na
Guaranteed Benefit Features (Narrative) (Details) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Guaranteed Benefit Features [Abstract] | |||||
Percent of permanent life insurance in force | 34.00% | 34.00% | 35.00% | ||
Percent of permanent life insurance sales | 28.00% | 33.00% | 27.00% | 31.00% |
Guaranteed Benefit Features (In
Guaranteed Benefit Features (Information On Guaranteed Death Benefit Features) (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2017 | Dec. 31, 2016 | ||
Return of Net Deposits [Member] | |||
Net Amount at Risk by Product and Guarantee [Line Items] | |||
Total Account Value | [1] | $ 92,182 | $ 87,707 |
Net Amount At Risk | [1],[2] | $ 179 | $ 824 |
Average attained age of contract holders | [1] | 64 years | 63 years |
Minimum Return [Member] | |||
Net Amount at Risk by Product and Guarantee [Line Items] | |||
Total Account Value | [1] | $ 107 | $ 105 |
Net Amount At Risk | [1],[2] | $ 19 | $ 22 |
Average attained age of contract holders | [1] | 76 years | 75 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] | $ 25,666 | $ 24,605 |
Net Amount At Risk | [1],[2] | $ 482 | $ 782 |
Average attained age of contract holders | [1] | 70 years | 69 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 | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Guaranteed Benefit Features [Abstract] | ||
Balance as of beginning-of-year | $ 110 | $ 115 |
Changes in reserves | (2) | 22 |
Benefits paid | (11) | (24) |
Balance as of end-of-period | $ 97 | $ 113 |
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 | Jun. 30, 2017 | Dec. 31, 2016 |
Account Balances Of Variable Annuity Contracts With Guarantees Invested In Separate Accounts [Line Items] | ||
Total | $ 115,219 | $ 109,182 |
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 | $ 55,453 | $ 52,244 |
International equity | ||
Account Balances Of Variable Annuity Contracts With Guarantees Invested In Separate Accounts [Line Items] | ||
Total | 18,610 | 17,396 |
Bonds | ||
Account Balances Of Variable Annuity Contracts With Guarantees Invested In Separate Accounts [Line Items] | ||
Total | 27,829 | 27,532 |
Money Market | ||
Account Balances Of Variable Annuity Contracts With Guarantees Invested In Separate Accounts [Line Items] | ||
Total | $ 13,327 | $ 12,010 |
Contingencies And Commitments (
Contingencies And Commitments (Narrative) (Details) $ in Millions | Jun. 30, 2017USD ($) |
Pending Litigation [Member] | |
Loss Contingencies [Line Items] | |
Loss contingency, estimate | $ 50 |
Shares and Stockholders' Equi67
Shares and Stockholders' Equity (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Deferred compensation plan mark to market adjustment | $ (1) | $ (1) | $ 7 | |
Maximum [Member] | ||||
Deferred compensation plan mark to market adjustment | $ 1 |
Shares and Stockholders' Equi68
Shares and Stockholders' Equity (Changes In Preferred And Common stock (Number Of Shares)) (Details) - shares | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | ||
Changes In Preferred And Common Stock Number Of Shares [Line Items] | |||||
Balance as of beginning-of-period | 226,335,105 | ||||
Balance as of end-of-period | 222,237,262 | 222,237,262 | |||
Common stock as of end-of-period: | |||||
Basic basis | 222,237,262 | 232,784,691 | 222,237,262 | 232,784,691 | |
Diluted basis | [1] | 226,044,165 | 236,179,176 | 226,044,165 | 236,179,176 |
Common Stock [Member] | |||||
Changes In Preferred And Common Stock Number Of Shares [Line Items] | |||||
Balance as of beginning-of-period | 224,888,259 | 239,005,252 | 226,335,105 | 243,835,893 | |
Stock issued for exercise of warrants | 289,636 | 13,335 | 334,930 | 38,148 | |
Stock compensation/issued for benefit plans | 89,455 | 9,537 | 1,461,286 | 670,142 | |
Retirement/cancellation of shares | (3,030,088) | (6,243,433) | (5,894,059) | (11,759,492) | |
Balance as of end-of-period | 222,237,262 | 232,784,691 | 222,237,262 | 232,784,691 | |
[1] | Effective October 1, 2016, we early adopted ASU 2016-09, Improvements to Employee Share-Based Payment Accounting. We have updated certain previously reported interim results and metrics as of January 1, 2016, in accordance with this guidance. For more information, see Note 1 - Earnings Per Share in our 2016 Form 10-K. |
Shares And Stockholders' Equi69
Shares And Stockholders' Equity (Reconciliation Of The Denominator Calculations Of Basic And Diluted EPS) (Details) - shares | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | ||
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 | 223,555,299 | 236,463,183 | 224,581,848 | 239,069,774 | |
Shares to cover exercise of outstanding warrants | 694,403 | 1,098,405 | 858,916 | 1,100,176 | |
Shares to cover non-vested stock | [1] | 1,426,550 | 872,481 | 1,551,173 | 967,816 |
Average stock options outstanding during the period | [1] | 2,339,558 | 2,090,988 | 2,510,344 | 1,948,817 |
Assumed acquisition of shares with assumed proceeds from exercising outstanding warrants | (105,156) | (265,103) | (127,696) | (278,312) | |
Assumed acquisition of shares with assumed proceeds and benefits from exercising stock options (at average market price for the period) | [1] | (1,464,321) | (1,429,907) | (1,541,738) | (1,364,709) |
Shares repurchaseable from measured but unrecognized stock option expense | [1] | (59,959) | (34,492) | (68,519) | (17,797) |
Average deferred compensation shares | 927,508 | 1,101,384 | 938,661 | 1,070,657 | |
Weighted-average shares, as used in diluted calculation | [1] | 227,313,882 | 239,896,939 | 228,702,989 | 242,496,422 |
[1] | Effective October 1, 2016, we early adopted ASU 2016-09, Improvements to Employee Share-Based Payment Accounting. We have updated certain previously reported interim results and metrics as of January 1, 2016, in accordance with this guidance. For more information, see Note 1 - Earnings Per Share in our 2016 Form 10-K. |
Shares and Stockholders' Equi70
Shares and Stockholders' Equity (Components And Changes In Accumulated OCI) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance as of beginning-of-year | $ 1,566 | ||
Increases Attributable To | |||
Gross OTTI recognized in OCI during the period | $ (10) | $ (36) | |
Less: | |||
Balance as of end-of-period | 2,711 | ||
Unrealized Gain (Loss) on AFS Securities [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance as of beginning-of-year | 1,784 | 991 | |
Unrealized holding gains (losses) arising during the year | 2,058 | 5,394 | |
Change in foreign currency exchange rate adjustment | 69 | (33) | |
Change in DAC, VOBA, DSI, future contract benefits and other contract holder funds | (356) | (1,620) | |
Income tax benefit (expense) | (626) | (1,321) | |
Less: | |||
Reclassification adjustment for gains (losses) included in net income (loss) | (13) | (101) | |
Associated amortization of DAC, VOBA, DSI, and DFEL | (11) | (7) | |
Income tax benefit (expense) | 8 | 38 | |
Less: | |||
Balance as of end-of-period | 3,481 | 2,945 | 3,481 |
Unrealized OTTI on AFS Securities [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance as of beginning-of-year | 25 | 26 | |
Increases Attributable To | |||
Gross OTTI recognized in OCI during the period | (36) | ||
Change in DAC, VOBA, DSI and DFEL | 8 | ||
Income tax benefit (expense) | 10 | ||
Decreases attributable to | |||
Changes in fair value, sales, maturities or other settlements of AFS securities | 21 | 5 | |
Change in DAC, VOBA, DSI, and DFEL | (4) | (1) | |
Income tax benefit (expense) | (6) | (2) | |
Less: | |||
Balance as of end-of-period | 10 | 36 | 10 |
Unrealized Gain (Loss) on Derivative Instruments [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance as of beginning-of-year | 49 | 132 | |
Unrealized holding gains (losses) arising during the year | 46 | (208) | |
Change in foreign currency exchange rate adjustment | (75) | 35 | |
Decreases attributable to | |||
Change in DAC, VOBA, DSI and DFEL | (8) | (6) | |
Income tax benefit (expense) | 13 | 62 | |
Less: | |||
Reclassification adjustment for gains (losses) included in net income (loss) | 7 | 9 | |
Associated amortization of DAC, VOBA, DSI and DFEL | (2) | (1) | |
Income tax benefit (expense) | (2) | (3) | |
Balance as of end-of-period | 10 | 22 | 10 |
Foreign Currency Translation Adjustment [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance as of beginning-of-year | (27) | (5) | |
Change in foreign currency exchange rate adjustment | 7 | (13) | |
Less: | |||
Balance as of end-of-period | (18) | (20) | (18) |
Funded Status of Employee Benefit Plans [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance as of beginning-of-year | (265) | (299) | |
Less: | |||
Adjustment arising during the period | (7) | 11 | |
Balance as of end-of-period | $ (288) | $ (272) | $ (288) |
Shares And Stockholders' Equi71
Shares And Stockholders' Equity (Schedule of Reclassifications Out Of AOCI) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total realized gain (loss) | $ (10) | $ (45) | $ (49) | $ (159) |
Net investment income | 1,262 | 1,199 | 2,499 | 2,371 |
Interest and debt expense | (63) | (68) | (127) | (136) |
Commissions and other expenses | (1,034) | (978) | (2,048) | (1,953) |
Income (loss) from continuing operations before taxes | 533 | 414 | 1,008 | 650 |
Federal income tax expense (benefit) | 122 | 89 | 162 | 114 |
Net income (loss) | $ 411 | $ 325 | 846 | 536 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Unrealized Gain (Loss) on AFS Securities [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total realized gain (loss) | (13) | (101) | ||
Income (loss) from continuing operations before taxes | (24) | (108) | ||
Federal income tax expense (benefit) | 8 | 38 | ||
Net income (loss) | (16) | (70) | ||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Unrealized Gain (Loss) on AFS Securities [Member] | Associated amortization of DAC, VOBA, DSI and DFEL [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total realized gain (loss) | (11) | (7) | ||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Unrealized OTTI on AFS Securities [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total realized gain (loss) | (1) | 1 | ||
Income (loss) from continuing operations before taxes | (1) | 1 | ||
Net income (loss) | (1) | 1 | ||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Unrealized Gain (Loss) on Derivative Instruments [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Nonoperating income expense | 7 | 9 | ||
Income (loss) from continuing operations before taxes | 5 | 8 | ||
Federal income tax expense (benefit) | (2) | (3) | ||
Net income (loss) | 3 | 5 | ||
Reclassification out of Accumulated Other Comprehensive Income [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 | 2 | 4 | ||
Interest and debt expense | (9) | (2) | ||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Unrealized Gain (Loss) on Derivative Instruments [Member] | Foreign currency contracts [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total realized gain (loss) | 5 | |||
Net investment income | 9 | 7 | ||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Unrealized Gain (Loss) on Derivative Instruments [Member] | Associated amortization of DAC, VOBA, DSI and DFEL [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Commissions and other expenses | $ (2) | $ (1) |
Realized (Gain) Loss (Details)
Realized (Gain) Loss (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | ||
Details underlying realized gain (loss) | |||||
Total realized gain (loss) related to certain investments | [1] | $ (18) | $ (65) | $ (31) | $ (172) |
Realized gain (loss) on the mark-to-market on certain instruments | [2] | (5) | (8) | 5 | |
Indexed annuity and IUL contracts net derivatives results: | |||||
Gross gain (loss) | [3] | (7) | (9) | (17) | (33) |
Associated amortization of DAC, VOBA, DSI, and DFEL | [3] | 2 | 4 | 1 | 6 |
Variable annuity net derivatives results: | |||||
Gross gain (loss) | [4] | 23 | 37 | (5) | 48 |
Associated amortization of DAC, VOBA, DSI, and DFEL | [4] | (5) | (4) | (2) | (8) |
Total realized gain (loss) | $ (10) | $ (45) | $ (49) | $ (159) | |
[1] | See "Realized Gain (Loss) Related to Certain Investments" section in Note 4. | ||||
[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 Index ® 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 GLB and GDB riders, including the cost of purchasing the hedging instruments. |
Stock-Based Compensation Plan73
Stock-Based Compensation Plans (Details) - shares | 3 Months Ended | 6 Months Ended |
Jun. 30, 2017 | Jun. 30, 2017 | |
Stock options [Member] | ||
Share-based compensation arrangement by share-based payment award [Line Items] | ||
Shares granted | 15,270 | 407,637 |
Performance Shares [Member] | ||
Share-based compensation arrangement by share-based payment award [Line Items] | ||
Shares granted | 5,126 | 154,351 |
Restricted Stock Units [Member] | ||
Share-based compensation arrangement by share-based payment award [Line Items] | ||
Shares granted | 37,365 | 435,865 |
Non-employee Stock Appreciation Rights [Member] | ||
Share-based compensation arrangement by share-based payment award [Line Items] | ||
Shares granted | 26,494 | |
Non-employee Agent Stock Options [Member] | ||
Share-based compensation arrangement by share-based payment award [Line Items] | ||
Shares granted | 102,638 | |
Non-employee Director Deferred Stock Units [Member] | ||
Share-based compensation arrangement by share-based payment award [Line Items] | ||
Shares granted | 7,059 | 14,534 |
Fair Value of Financial Instr74
Fair Value of Financial Instruments (Carrying and Estimated Fair Values of Financial Instruments) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 | |
AFS securities: | |||
AFS Fixed Maturity Securities | $ 93,014 | $ 89,013 | |
Variable interest entities' fixed maturity securities | 200 | ||
AFS Equity securities | 275 | 275 | |
Trading securities | 1,678 | 1,712 | |
Mortgage loans on real estate | 10,023 | 9,889 | |
Derivative investments | 1,054 | 927 | |
Other investments | 2,156 | 2,230 | |
Carrying Value [Member] | |||
AFS securities: | |||
AFS Equity securities | 275 | 275 | |
Trading securities | 1,678 | 1,712 | |
Mortgage loans on real estate | 10,023 | 9,889 | |
Derivative investments | [1] | 1,054 | 927 |
Other investments | 2,156 | 2,230 | |
Cash and invested cash | 1,978 | 2,722 | |
Other assets - GLB direct embedded derivatives | [2] | 298 | |
Other assets - GLB ceded embedded derivatives | 85 | 203 | |
Separate account assets | 135,825 | 128,397 | |
Future contract benefits: | |||
Indexed annuity and IUL contracts embedded derivatives | (1,268) | (1,139) | |
Other contract holder funds: | |||
Remaining guaranteed interest and similar contracts | (625) | (629) | |
Account values of certain investment contracts | (31,982) | (31,516) | |
Short-term debt | (450) | ||
Long-term debt | (4,901) | (5,345) | |
Reinsurance related embedded derivatives | (53) | (53) | |
Other liabilities - derivative liabilities | [1] | (169) | (553) |
Other liabilities - GLB direct embedded derivatives | [2] | (371) | |
Fair Value [Member] | |||
AFS securities: | |||
AFS Equity securities | 275 | 275 | |
Trading securities | 1,678 | 1,712 | |
Mortgage loans on real estate | 10,157 | 9,853 | |
Derivative investments | [1] | 1,054 | 927 |
Other investments | 2,156 | 2,230 | |
Cash and invested cash | 1,978 | 2,722 | |
Other assets - GLB direct embedded derivatives | [2] | 298 | |
Other assets - GLB ceded embedded derivatives | 85 | 203 | |
Separate account assets | 135,825 | 128,397 | |
Future contract benefits: | |||
Indexed annuity and IUL contracts embedded derivatives | (1,268) | (1,139) | |
Other contract holder funds: | |||
Remaining guaranteed interest and similar contracts | (625) | (629) | |
Account values of certain investment contracts | (36,201) | (35,647) | |
Short-term debt | (457) | ||
Long-term debt | (5,485) | (5,679) | |
Reinsurance related embedded derivatives | (53) | (53) | |
Other liabilities - derivative liabilities | [1] | (169) | (553) |
Other liabilities - GLB direct embedded derivatives | [2] | (371) | |
VIEs' fixed maturity securities [Member] | Carrying Value [Member] | |||
AFS securities: | |||
Variable interest entities' fixed maturity securities | 200 | ||
VIEs' fixed maturity securities [Member] | Fair Value [Member] | |||
AFS securities: | |||
Variable interest entities' fixed maturity securities | 200 | ||
Fixed maturity AFS securities [Member] | Carrying Value [Member] | |||
AFS securities: | |||
AFS Fixed Maturity Securities | 93,014 | 89,013 | |
Fixed maturity AFS securities [Member] | Fair Value [Member] | |||
AFS securities: | |||
AFS Fixed Maturity Securities | $ 93,014 | $ 89,013 | |
[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] | Portions of our GLB direct embedded derivatives are ceded to third-party reinsurance counterparties. Refer to Note 5 for additional detail. |
Fair Value of Financial Instr75
Fair Value of Financial Instruments (Fair Value of Assets and Liabilities on a Recurring Basis) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 | |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | $ 235,024 | $ 224,673 | |
Liabilities measured at fair value | (3,292) | (4,397) | |
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 | 1,639 | 1,596 | |
Significant Observable Inputs (Level 2) [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 229,377 | 219,330 | |
Liabilities measured at fair value | (1,608) | (2,195) | |
Significant Unobservable Inputs (Level 3) [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 4,008 | 3,747 | |
Liabilities measured at fair value | (1,684) | (2,202) | |
Corporate bonds [Member] | Fixed maturity AFS securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 80,548 | 77,064 | |
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 | 78,031 | 74,659 | |
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 | 2,517 | 2,405 | |
ABS [Member] | Fixed maturity AFS securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 1,050 | 1,085 | |
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 | 1,007 | 1,052 | |
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 | 43 | 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 | 578 | 419 | |
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 | 564 | 408 | |
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 | 9 | 11 | |
U.S. 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 | 5 | ||
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 | 455 | 506 | |
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 | 346 | 395 | |
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 | 109 | 111 | |
RMBS [Member] | Fixed maturity AFS securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 3,552 | 3,614 | |
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 | 3,545 | 3,611 | |
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 | 7 | 3 | |
CMBS [Member] | Fixed maturity AFS securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 476 | 350 | |
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 | 455 | 343 | |
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 | 21 | 7 | |
CLOs [Member] | Fixed maturity AFS securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 703 | 744 | |
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 | 675 | 676 | |
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 | 28 | 68 | |
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 | 5,010 | 4,627 | |
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 | 5,010 | 4,627 | |
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 | 642 | 604 | |
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 | 67 | 60 | |
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 | 493 | 468 | |
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 | 82 | 76 | |
VIEs' fixed maturity securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 200 | ||
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 | 200 | ||
Equity AFS securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 275 | 275 | |
Equity AFS 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 | 13 | 17 | |
Equity AFS securities [Member] | Significant Observable Inputs (Level 2) [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 79 | 81 | |
Equity AFS securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 183 | 177 | |
Trading securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 1,678 | 1,712 | |
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 | 73 | 102 | |
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 | 1,546 | 1,545 | |
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 | 59 | 65 | |
Derivative investments [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | [1] | 1,721 | 2,005 |
Derivative investments [Member] | Significant Observable Inputs (Level 2) [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | [1] | 1,150 | 1,406 |
Derivative investments [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | [1] | 571 | 599 |
Other investments [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 150 | 146 | |
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 | 150 | 146 | |
Invested cash [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 1,978 | 2,722 | |
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 | 1,978 | 2,722 | |
GLB ceded embedded derivatives [Member] | Other assets [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 85 | 203 | |
GLB ceded embedded derivatives [Member] | Significant Unobservable Inputs (Level 3) [Member] | Other assets [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 85 | 203 | |
Separate Account Assets [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 135,825 | 128,397 | |
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 | 772 | 863 | |
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 | 135,053 | 127,534 | |
Indexed annuity and IUL contracts embedded derivatives [Member] | Future contract benefits [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Liabilities measured at fair value | (1,268) | (1,139) | |
Indexed annuity and IUL contracts embedded derivatives [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 | (1,268) | (1,139) | |
Long-term Debt [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Liabilities measured at fair value | (1,135) | (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 | (1,135) | (1,203) | |
Reinsurance related embedded derivatives [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Liabilities measured at fair value | (53) | (53) | |
Reinsurance related embedded derivatives [Member] | Significant Observable Inputs (Level 2) [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Liabilities measured at fair value | (53) | (53) | |
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] | (836) | (1,631) |
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] | (420) | (939) |
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] | (416) | (692) |
GLB direct embedded derivatives [Member] | Other assets [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 298 | ||
GLB direct embedded derivatives [Member] | Other liabilities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Liabilities measured at fair value | (371) | ||
GLB direct embedded derivatives [Member] | Significant Unobservable Inputs (Level 3) [Member] | Other assets [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | $ 298 | ||
GLB direct embedded derivatives [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 | $ (371) | ||
[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 Instr76
Fair Value of Financial Instruments (Fair Value Measured On A Recurring Basis Reconciliation) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | ||||
Level 3 Unobservable Input Reconciliation | |||||||
Beginning Fair Value | $ 2,224 | $ 883 | $ 1,545 | $ 1,799 | |||
Items Included in Net Income | 41 | (280) | 369 | (1,502) | |||
Gains (Losses) in OCI and Other | [1] | 127 | 124 | 224 | 234 | ||
Issuances, Sales, Maturities, Settlements, Calls, Net | 39 | 171 | 146 | 228 | |||
Transfers In or Out of Level 3, Net | [2] | (107) | (509) | 40 | (370) | ||
Ending Fair Value | 2,324 | 389 | 2,324 | 389 | |||
Corporate bonds [Member] | Fixed maturity AFS securities [Member] | |||||||
Level 3 Unobservable Input Reconciliation | |||||||
Beginning Fair Value | [3] | 2,403 | 2,185 | 2,405 | 1,993 | ||
Items Included in Net Income | [3] | 5 | (6) | 11 | |||
Gains (Losses) in OCI and Other | [1],[3] | 53 | 46 | 118 | 64 | ||
Issuances, Sales, Maturities, Settlements, Calls, Net | [3] | 57 | 118 | (147) | 146 | ||
Transfers In or Out of Level 3, Net | [2],[3] | (1) | 82 | 130 | 222 | ||
Ending Fair Value | [3] | 2,517 | 2,425 | 2,517 | 2,425 | ||
ABS [Member] | Fixed maturity AFS securities [Member] | |||||||
Level 3 Unobservable Input Reconciliation | |||||||
Beginning Fair Value | [3] | 29 | 44 | 33 | 45 | ||
Items Included in Net Income | [3] | ||||||
Gains (Losses) in OCI and Other | [1],[3] | 1 | (1) | ||||
Issuances, Sales, Maturities, Settlements, Calls, Net | [3] | 14 | 14 | ||||
Transfers In or Out of Level 3, Net | [2],[3] | 14 | 4 | 9 | 4 | ||
Ending Fair Value | [3] | 43 | 62 | 43 | 62 | ||
U.S. government bonds [Member] | Fixed maturity AFS securities [Member] | |||||||
Level 3 Unobservable Input Reconciliation | |||||||
Beginning Fair Value | [3] | 5 | |||||
Items Included in Net Income | [3] | ||||||
Gains (Losses) in OCI and Other | [1],[3] | ||||||
Issuances, Sales, Maturities, Settlements, Calls, Net | [3] | 10 | 10 | [3] | |||
Transfers In or Out of Level 3, Net | [2],[3] | 5 | |||||
Ending Fair Value | [3] | 5 | 10 | 5 | 10 | ||
Foreign government bonds [Member] | Fixed maturity AFS securities [Member] | |||||||
Level 3 Unobservable Input Reconciliation | |||||||
Beginning Fair Value | [3] | 110 | 111 | 111 | 111 | ||
Items Included in Net Income | [3] | ||||||
Gains (Losses) in OCI and Other | [1],[3] | (1) | 1 | (2) | 1 | ||
Issuances, Sales, Maturities, Settlements, Calls, Net | [3] | ||||||
Transfers In or Out of Level 3, Net | [2],[3] | ||||||
Ending Fair Value | [3] | 109 | 112 | 109 | 112 | ||
RMBS [Member] | Fixed maturity AFS securities [Member] | |||||||
Level 3 Unobservable Input Reconciliation | |||||||
Beginning Fair Value | [3] | 7 | 1 | 3 | 1 | ||
Items Included in Net Income | [3] | ||||||
Gains (Losses) in OCI and Other | [1],[3] | ||||||
Issuances, Sales, Maturities, Settlements, Calls, Net | [3] | 15 | 4 | 15 | |||
Transfers In or Out of Level 3, Net | [2],[3] | ||||||
Ending Fair Value | [3] | 7 | 16 | 7 | 16 | ||
CMBS [Member] | Fixed maturity AFS securities [Member] | |||||||
Level 3 Unobservable Input Reconciliation | |||||||
Beginning Fair Value | [3] | 44 | 9 | 7 | 10 | ||
Items Included in Net Income | [3] | 2 | 2 | ||||
Gains (Losses) in OCI and Other | [1],[3] | 1 | (1) | 1 | (1) | ||
Issuances, Sales, Maturities, Settlements, Calls, Net | [3] | 14 | (2) | 55 | (3) | ||
Transfers In or Out of Level 3, Net | [2],[3] | (38) | (42) | ||||
Ending Fair Value | [3] | 21 | 8 | 21 | 8 | ||
CLOs [Member] | Fixed maturity AFS securities [Member] | |||||||
Level 3 Unobservable Input Reconciliation | |||||||
Beginning Fair Value | [3] | 88 | 591 | 68 | 551 | ||
Items Included in Net Income | [3] | ||||||
Gains (Losses) in OCI and Other | [1],[3] | 2 | |||||
Issuances, Sales, Maturities, Settlements, Calls, Net | [3] | 13 | 40 | 18 | 78 | ||
Transfers In or Out of Level 3, Net | [2],[3] | (73) | (586) | (58) | (586) | ||
Ending Fair Value | [3] | 28 | 45 | 28 | 45 | ||
State and municipal bonds [Member] | Fixed maturity AFS securities [Member] | |||||||
Level 3 Unobservable Input Reconciliation | |||||||
Beginning Fair Value | [3] | 1 | |||||
Items Included in Net Income | [3] | (1) | |||||
Gains (Losses) in OCI and Other | [1],[3] | ||||||
Issuances, Sales, Maturities, Settlements, Calls, Net | [3] | ||||||
Transfers In or Out of Level 3, Net | [2],[3] | (1) | 1 | ||||
Hybrid and redeemable preferred securities [Member] | Fixed maturity AFS securities [Member] | |||||||
Level 3 Unobservable Input Reconciliation | |||||||
Beginning Fair Value | [3] | 79 | 92 | 76 | 94 | ||
Items Included in Net Income | [3] | ||||||
Gains (Losses) in OCI and Other | [1],[3] | 8 | (3) | 11 | (5) | ||
Issuances, Sales, Maturities, Settlements, Calls, Net | [3] | ||||||
Transfers In or Out of Level 3, Net | [2],[3] | (5) | (5) | ||||
Ending Fair Value | [3] | 82 | 89 | 82 | 89 | ||
Equity AFS securities [Member] | |||||||
Level 3 Unobservable Input Reconciliation | |||||||
Beginning Fair Value | [3] | 182 | 167 | 177 | 164 | ||
Items Included in Net Income | [3] | 1 | |||||
Gains (Losses) in OCI and Other | [1],[3] | 3 | (1) | 2 | |||
Issuances, Sales, Maturities, Settlements, Calls, Net | [3] | 1 | 6 | 4 | |||
Transfers In or Out of Level 3, Net | [2],[3] | ||||||
Ending Fair Value | [3] | 183 | 170 | 183 | 170 | ||
Trading securities [Member] | |||||||
Level 3 Unobservable Input Reconciliation | |||||||
Beginning Fair Value | [3] | 60 | 74 | 65 | 73 | ||
Items Included in Net Income | [3] | 1 | 1 | 2 | 2 | ||
Gains (Losses) in OCI and Other | [1],[3] | 1 | (1) | 8 | 1 | ||
Issuances, Sales, Maturities, Settlements, Calls, Net | [3] | (16) | (1) | ||||
Transfers In or Out of Level 3, Net | [2],[3] | (3) | (9) | (10) | |||
Ending Fair Value | [3] | 59 | 65 | 59 | 65 | ||
Derivative investments [Member] | |||||||
Level 3 Unobservable Input Reconciliation | |||||||
Beginning Fair Value | [3] | 112 | 190 | (93) | 555 | ||
Items Included in Net Income | [3] | 58 | 183 | (11) | (258) | ||
Gains (Losses) in OCI and Other | [1],[3] | 65 | 79 | 88 | 171 | ||
Issuances, Sales, Maturities, Settlements, Calls, Net | [3] | (80) | (29) | 171 | (45) | ||
Transfers In or Out of Level 3, Net | [2],[3] | ||||||
Ending Fair Value | [3] | 155 | 423 | 155 | 423 | ||
Other investments [Member] | |||||||
Level 3 Unobservable Input Reconciliation | |||||||
Beginning Fair Value | [3],[4] | 2 | |||||
Items Included in Net Income | [3],[4] | (1) | 1 | ||||
Ending Fair Value | [3],[4] | 1 | 1 | ||||
GLB ceded embedded derivatives [Member] | Other assets [Member] | |||||||
Level 3 Unobservable Input Reconciliation | |||||||
Beginning Fair Value | [5] | 116 | 433 | 203 | 268 | ||
Items Included in Net Income | [5] | (31) | 106 | (118) | 271 | ||
Gains (Losses) in OCI and Other | [1],[5] | ||||||
Issuances, Sales, Maturities, Settlements, Calls, Net | [5] | ||||||
Transfers In or Out of Level 3, Net | [2],[5] | ||||||
Ending Fair Value | [5] | 85 | 539 | 85 | 539 | ||
Indexed annuity and IUL contracts embedded derivatives [Member] | Future contract benefits [Member] | |||||||
Level 3 Unobservable Input Reconciliation | |||||||
Beginning Fair Value | [5] | (1,238) | (1,088) | (1,139) | (1,100) | ||
Items Included in Net Income | [5] | (64) | (19) | (184) | (12) | ||
Gains (Losses) in OCI and Other | [1],[5] | ||||||
Issuances, Sales, Maturities, Settlements, Calls, Net | [5] | 34 | 5 | 55 | 10 | ||
Transfers In or Out of Level 3, Net | [2],[5] | ||||||
Ending Fair Value | [5] | (1,268) | (1,102) | (1,268) | (1,102) | ||
VIEs' liabilities - derivative instruments [Member] | |||||||
Level 3 Unobservable Input Reconciliation | |||||||
Beginning Fair Value | [5] | (4) | |||||
Items Included in Net Income | [5] | 4 | |||||
Credit default swaps [Member] | Other liabilities [Member] | |||||||
Level 3 Unobservable Input Reconciliation | |||||||
Beginning Fair Value | [4] | (12) | (9) | ||||
Items Included in Net Income | [4] | (4) | (7) | ||||
Gains (Losses) in OCI and Other | [1],[4] | ||||||
Issuances, Sales, Maturities, Settlements, Calls, Net | [4] | ||||||
Transfers In or Out of Level 3, Net | [2],[4] | ||||||
Ending Fair Value | [4] | (16) | (16) | ||||
GLB direct embedded derivatives [Member] | Other assets [Member] | |||||||
Level 3 Unobservable Input Reconciliation | |||||||
Beginning Fair Value | [5] | 226 | |||||
Items Included in Net Income | [5] | 72 | 298 | ||||
Gains (Losses) in OCI and Other | [1],[5] | ||||||
Issuances, Sales, Maturities, Settlements, Calls, Net | [5] | ||||||
Transfers In or Out of Level 3, Net | [2],[5] | ||||||
Ending Fair Value | [5] | $ 298 | 298 | ||||
GLB direct embedded derivatives [Member] | Other liabilities [Member] | |||||||
Level 3 Unobservable Input Reconciliation | |||||||
Beginning Fair Value | [5] | (1,916) | (371) | (953) | |||
Items Included in Net Income | [5] | (542) | $ 371 | (1,505) | |||
Ending Fair Value | [5] | $ (2,458) | $ (2,458) | ||||
[1] | The changes in fair value of the interest rate swaps are offset by an adjustment to derivative investments (see Note 5). | ||||||
[2] | Transfers into or out of Level 3 for AFS and trading securities are displayed at amortized cost as of the beginning-of-period. For AFS and trading securities, the difference between beginning-of-period amortized cost and beginning-of-period fair value was included in OCI and earnings, respectively, in the prior period. | ||||||
[3] | 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). | ||||||
[4] | 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). | ||||||
[5] | Gains (losses) from sales, maturities, settlements and calls are included in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). |
Fair Value of Financial Instr77
Fair Value of Financial Instruments (Schedule Of Investment Holdings Movements) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | ||||
Issuances | $ 225 | $ 268 | $ 351 | $ 443 |
Sales | (32) | (52) | 181 | (86) |
Maturities | (124) | (31) | (236) | (48) |
Settlements | (17) | (14) | (42) | (24) |
Calls | (13) | (108) | (57) | |
Total | 39 | 171 | 146 | 228 |
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 | 162 | 172 | 200 | 289 |
Sales | (3) | (8) | (65) | |
Maturities | (25) | (47) | (3) | |
Settlements | (64) | (46) | (127) | (83) |
Calls | (13) | (108) | (57) | |
Total | 57 | 118 | (147) | 146 |
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 | 15 | 15 | ||
Settlements | (1) | (1) | ||
Total | 14 | 14 | ||
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 | 10 | 10 | ||
Total | 10 | 10 | ||
RMBS [Member] | Fixed maturity AFS securities [Member] | ||||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | ||||
Issuances | 15 | 4 | 15 | |
Total | 15 | 4 | 15 | |
CMBS [Member] | Fixed maturity AFS securities [Member] | ||||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | ||||
Issuances | 14 | 55 | ||
Sales | (1) | (1) | ||
Settlements | (1) | (2) | ||
Total | 14 | (2) | 55 | (3) |
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 | 13 | 40 | 18 | 80 |
Settlements | (2) | |||
Total | 13 | 40 | 18 | 78 |
Equity AFS securities [Member] | ||||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | ||||
Issuances | 1 | 8 | 4 | |
Sales | (2) | |||
Total | 1 | 6 | 4 | |
Trading securities [Member] | ||||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | ||||
Issuances | 2 | |||
Sales | (17) | |||
Settlements | (1) | (1) | ||
Total | (16) | (1) | ||
Derivative investments [Member] | ||||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | ||||
Issuances | 48 | 45 | 95 | 85 |
Sales | (29) | (43) | 265 | (85) |
Maturities | (99) | (31) | (189) | (45) |
Total | (80) | (29) | 171 | (45) |
Indexed annuity and IUL contracts embedded derivatives [Member] | Future contract benefits [Member] | ||||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | ||||
Issuances | (13) | (19) | (31) | (45) |
Settlements | 47 | 24 | 86 | 55 |
Total | $ 34 | $ 5 | $ 55 | $ 10 |
Fair Value of Financial Instr78
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 | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | ||
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] | $ 229 | $ (198) | $ 887 | $ (1,436) |
Derivative investments [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 | (2) | 216 | (76) | (177) | |
Other investments [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 | (1) | 1 | |||
Indexed annuity and IUL contracts embedded derivatives [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 | (1) | (15) | (24) | ||
GLB direct and ceded embedded derivatives [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 | $ 231 | (409) | $ 978 | (1,233) | |
VIEs' liabilities - derivative instruments [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 | 4 | ||||
Credit default swaps [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 | $ (3) | $ (7) | |||
[1] | Included in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). |
Fair Value of Financial Instr79
Fair Value of Financial Instruments (Components Of The Transfers In And Out Of Level 3) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | ||||
Transfers In to Level 3 | $ 19 | $ 170 | $ 219 | $ 334 |
Transfers Out of Level 3 | (126) | (679) | (179) | (704) |
Transfers In or Out of Level 3, Net | (107) | (509) | 40 | (370) |
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 | 1 | 165 | 161 | 329 |
Transfers Out of Level 3 | (2) | (83) | (31) | (107) |
Transfers In or Out of Level 3, Net | (1) | 82 | 130 | 222 |
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 | 15 | 4 | 15 | 4 |
Transfers Out of Level 3 | (1) | (6) | ||
Transfers In or Out of Level 3, Net | 14 | 4 | 9 | 4 |
U.S. 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 | 5 | |||
Transfers In or Out of Level 3, Net | 5 | |||
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 | 3 | 3 | ||
Transfers Out of Level 3 | (41) | (45) | ||
Transfers In or Out of Level 3, Net | (38) | (42) | ||
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 | 30 | |||
Transfers Out of Level 3 | (73) | (586) | (88) | (586) |
Transfers In or Out of Level 3, Net | (73) | (586) | (58) | (586) |
State and municipal 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 | 2 | |||
Transfers Out of Level 3 | (1) | (1) | ||
Transfers In or Out of Level 3, Net | (1) | 1 | ||
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 Out of Level 3 | (5) | (5) | ||
Transfers In or Out of Level 3, Net | (5) | (5) | ||
Trading securities [Member] | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | ||||
Transfers In to Level 3 | 1 | 3 | 1 | |
Transfers Out of Level 3 | (3) | (10) | $ (3) | (11) |
Transfers In or Out of Level 3, Net | $ (3) | $ (9) | $ (10) |
Fair Value of Financial Instr80
Fair Value of Financial Instruments (Fair Value Inputs Quantitative Information) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2017 | Dec. 31, 2016 | |
Assets Fair Value Disclosure [Abstract] | ||
Assets Fair Value Disclosure | $ 235,024 | $ 224,673 |
Liabilities Fair Value Disclosure [Abstract] | ||
Liabilities measured at fair value | (3,292) | (4,397) |
Significant Unobservable Inputs (Level 3) [Member] | ||
Assets Fair Value Disclosure [Abstract] | ||
Assets Fair Value Disclosure | 4,008 | 3,747 |
Liabilities Fair Value Disclosure [Abstract] | ||
Liabilities measured at fair value | (1,684) | $ (2,202) |
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 | $ 1,885 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Corporate bonds [Member] | Maximum [Member] | Fixed maturity AFS securities [Member] | ||
Assets Fair Value Disclosure [Abstract] | ||
Liquidity Duration Adjustment | 41.90% | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Corporate bonds [Member] | Minimum [Member] | Fixed maturity AFS securities [Member] | ||
Assets Fair Value Disclosure [Abstract] | ||
Liquidity Duration Adjustment | 0.70% | |
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] | ABS [Member] | Maximum [Member] | Fixed maturity AFS securities [Member] | ||
Assets Fair Value Disclosure [Abstract] | ||
Liquidity Duration Adjustment | 3.00% | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | ABS [Member] | Minimum [Member] | Fixed maturity AFS securities [Member] | ||
Assets Fair Value Disclosure [Abstract] | ||
Liquidity Duration Adjustment | 3.00% | |
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 | $ 78 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Foreign government bonds [Member] | Maximum [Member] | Fixed maturity AFS securities [Member] | ||
Assets Fair Value Disclosure [Abstract] | ||
Liquidity Duration Adjustment | 3.60% | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Foreign government bonds [Member] | Minimum [Member] | Fixed maturity AFS securities [Member] | ||
Assets Fair Value Disclosure [Abstract] | ||
Liquidity Duration Adjustment | 1.80% | |
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 | $ 4 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Hybrid and redeemable preferred securities [Member] | Maximum [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] | Hybrid and redeemable preferred securities [Member] | Minimum [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] | Equity 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] | Equity AFS securities [Member] | Maximum [Member] | ||
Assets Fair Value Disclosure [Abstract] | ||
Liquidity Duration Adjustment | 5.00% | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Equity AFS securities [Member] | Minimum [Member] | ||
Assets Fair Value Disclosure [Abstract] | ||
Liquidity Duration Adjustment | 4.50% | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | GLB direct and ceded embedded derivatives [Member] | Other assets [Member] | ||
Assets Fair Value Disclosure [Abstract] | ||
Assets Fair Value Disclosure | $ 383 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | GLB direct and ceded embedded derivatives [Member] | Maximum [Member] | Other assets [Member] | ||
Fair Value Inputs [Abstract] | ||
Lapse Rate | 30.00% | |
Utilization of guaranteed withdrawal | 100.00% | |
Claims Utilization Factor | 100.00% | |
Premiums Utilization Factor | 115.00% | |
NPR | 0.33% | |
Volatility | 29.00% | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | GLB direct and ceded embedded derivatives [Member] | Minimum [Member] | Other assets [Member] | ||
Fair Value Inputs [Abstract] | ||
Lapse Rate | 1.00% | |
Utilization of guaranteed withdrawal | 85.00% | |
Claims Utilization Factor | 60.00% | |
Premiums Utilization Factor | 80.00% | |
NPR | 0.01% | |
Volatility | 1.00% | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Future contract benefits - indexed annuity and IUL contracts embedded derivatives [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Liabilities measured at fair value | $ (1,268) | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Future contract benefits - indexed annuity and IUL contracts embedded derivatives [Member] | Maximum [Member] | ||
Fair Value Inputs [Abstract] | ||
Lapse Rate | 9.00% | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Future contract benefits - indexed annuity and IUL contracts embedded derivatives [Member] | Minimum [Member] | ||
Fair Value Inputs [Abstract] | ||
Lapse Rate | 1.00% |
Segment Information (Narrative)
Segment Information (Narrative) (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Segment Information [Abstract] | ||||
Federal rate | 35.00% | 35.00% | 35.00% | 35.00% |
Segment Information (Reconcilia
Segment Information (Reconciliation Of Revenue From Segments To Consolidated) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Segment Reporting Information [Line Items] | ||||
Total revenues | $ 3,577 | $ 3,307 | $ 7,077 | $ 6,551 |
Annuities Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 1,076 | 983 | 2,138 | 2,022 |
Retirement Plan Services Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 290 | 270 | 571 | 537 |
Life Insurance Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 1,655 | 1,538 | 3,260 | 3,016 |
Group Protection Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 541 | 525 | 1,082 | 1,059 |
Other Operations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 67 | 79 | 155 | 161 |
Excluded realized gain (loss) pre-tax [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | $ (52) | (89) | (132) | (245) |
Amortization of deferred gain arising from reserve changes on business sold through reinsurance, pre-tax [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | $ 1 | 1 | $ 1 | |
Amortization Of DFEL Associated With Benefit Ratio Unlocking, Pre-Tax [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | $ 2 |
Segment Information (Reconcil83
Segment Information (Reconciliation Of Income (Loss) From Operations By Segment To Consolidated Net Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | ||||
Net income (loss) | $ 411 | $ 325 | $ 846 | $ 536 |
Annuities Segment [Member] | ||||
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | ||||
Income (loss) from continuing operations | 251 | 235 | 532 | 453 |
Retirement Plan Services Segment [Member] | ||||
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | ||||
Income (loss) from continuing operations | 37 | 31 | 74 | 61 |
Life Insurance Segment [Member] | ||||
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | ||||
Income (loss) from continuing operations | 133 | 120 | 263 | 195 |
Group Protection Segment [Member] | ||||
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | ||||
Income (loss) from continuing operations | 35 | 15 | 42 | 20 |
Other Operations [Member] | ||||
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | ||||
Income (loss) from continuing operations | (37) | (28) | (51) | (39) |
Excluded realized gain (loss), after-tax [Member] | ||||
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | ||||
Income (loss) from continuing operations | (34) | (57) | (85) | (159) |
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 discontinued operations, after-tax | 1 | |||
Benefit ratio unlocking, after-tax [Member] | ||||
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | ||||
Income (loss) from continuing operations | $ 26 | $ 9 | $ 71 | $ 4 |