Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | May 04, 2020 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Current Fiscal Year End Date | --12-31 | |
Document Period End Date | Mar. 31, 2020 | |
Document Transition Report | false | |
Entity File Number | 1-6028 | |
Entity Registrant Name | LINCOLN NATIONAL CORPORATION | |
Entity Incorporation, State or Country Code | IN | |
Entity Tax Identification Number | 35-1140070 | |
Entity Address, Address Line One | 150 N. Radnor-Chester Road | |
Entity Address, Address Line Two | Suite A305 | |
Entity Address, City or Town | Radnor | |
Entity Address, State or Province | PA | |
Entity Address, Postal Zip Code | 19087 | |
City Area Code | 484 | |
Local Phone Number | 583-1400 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | LNC | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 193,224,445 | |
Amendment Flag | false | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2020 | |
Entity Central Index Key | 0000059558 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Investments: | ||
Fixed maturity available-for-sale securities, at fair value (amortized cost: 2020 – $96,217; 2019 – $94,295; allowance for credit losses: 2020 – $20; 2019 – $0) | $ 102,606 | $ 105,200 |
Trading securities | 4,019 | 4,673 |
Equity securities | 83 | 103 |
Mortgage loans on real estate, net of allowance for credit losses (portion at fair value: 2020 – $765; 2019 – $0) | 16,791 | 16,339 |
Policy loans | 2,571 | 2,477 |
Derivative investments | 4,417 | 1,911 |
Other investments | 4,765 | 2,994 |
Total investments | 135,252 | 133,697 |
Cash and invested cash | 6,202 | 2,563 |
Deferred acquisition costs and value of business acquired | 9,212 | 7,694 |
Premiums and fees receivable | 562 | 465 |
Accrued investment income | 1,185 | 1,148 |
Reinsurance recoverables, net of allowance for credit losses | 16,923 | 17,144 |
Reinsurance related embedded derivatives | 137 | |
Funds withheld reinsurance assets | 535 | 536 |
Goodwill | 1,778 | 1,778 |
Other assets | 16,246 | 16,170 |
Separate account assets | 130,617 | 153,566 |
Total assets | 318,649 | 334,761 |
Liabilities | ||
Future contract benefits | 37,100 | 36,420 |
Other contract holder funds | 99,508 | 98,018 |
Short-term debt | 300 | |
Long-term debt | 6,748 | 6,067 |
Reinsurance related embedded derivatives | 327 | |
Funds withheld reinsurance liabilities | 1,843 | 1,810 |
Payables for collateral on investments | 8,434 | 5,082 |
Other liabilities | 17,824 | 13,482 |
Separate account liabilities | 130,617 | 153,566 |
Total liabilities | 302,074 | 315,072 |
Contingencies and Commitments (See Note 11) | ||
Stockholders' Equity | ||
Preferred stock - 10,000,000 shares authorized | ||
Common stock – 800,000,000 shares authorized; 193,208,244 and 196,668,532 shares issued and outstanding as of March 31, 2020 and December 31, 2019, respectively | 5,071 | 5,162 |
Retained earnings | 8,500 | 8,854 |
Accumulated other comprehensive income (loss) | 3,004 | 5,673 |
Total stockholders' equity | 16,575 | 19,689 |
Total liabilities and stockholders' equity | $ 318,649 | $ 334,761 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Available-for-sale securities, at fair value: | ||
Fixed maturity securities (amortized cost) | $ 96,217 | $ 94,295 |
Fixed maturity, ACL | 20 | 0 |
Mortgage loans on real estate, fair value | $ 765 | $ 0 |
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) | 193,208,244 | 196,668,532 |
Common stock - shares outstanding (in shares) | 193,208,244 | 196,668,532 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenues | ||
Insurance premiums | $ 1,373 | $ 1,446 |
Fee income | 1,539 | 1,475 |
Net investment income | 1,375 | 1,251 |
Realized gain (loss): | ||
Total other-than-temporary impairment losses on securities | (23) | |
Portion of loss recognized in other comprehensive income | 15 | |
Net other-than-temporary impairment losses on securities recognized in earnings | (8) | |
Realized gain (loss), excluding other-than-temporary impairment losses on securities | (24) | (354) |
Total realized gain (loss) | (24) | (362) |
Amortization of deferred gain on business sold through reinsurance | 11 | 8 |
Other revenues | 151 | 147 |
Total revenues | 4,425 | 3,965 |
Expenses | ||
Interest credited | 725 | 678 |
Benefits | 2,501 | 1,757 |
Commissions and other expenses | 1,085 | 1,176 |
Interest and debt expense | 68 | 71 |
Strategic digitization expense | 12 | 15 |
Total expenses | 4,391 | 3,697 |
Income (loss) before taxes | 34 | 268 |
Federal income tax expense (benefit) | (18) | 16 |
Net income (loss) | 52 | 252 |
Other comprehensive income (loss), net of tax | (2,669) | 2,046 |
Comprehensive income (loss) | $ (2,617) | $ 2,298 |
Net Income (Loss) Per Common Share | ||
Basic (in dollars per share) | $ 0.27 | $ 1.23 |
Diluted (in dollars per share) | 0.15 | 1.22 |
Cash Dividends Declared Per Common Share | $ 0.40 | $ 0.37 |
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, 2018 | $ 5,392 | $ 8,551 | $ 407 | |
Stock compensation/issued for benefit plans | (5) | |||
Net income (loss) | 252 | $ 252 | ||
Retirement of common stock/cancellation of shares | (102) | (48) | ||
Common stock dividends declared | (76) | |||
Other comprehensive income (loss), net of tax | 2,046 | 2,046 | ||
Balance as of end-of-period at Mar. 31, 2019 | 5,285 | 8,679 | 2,453 | 16,417 |
Balance as of beginning-of-year at Dec. 31, 2019 | 5,162 | 8,854 | 5,673 | 19,689 |
Cumulative effect from adoption of new accounting standards at Dec. 31, 2019 | (203) | |||
Stock compensation/issued for benefit plans | 9 | |||
Net income (loss) | 52 | 52 | ||
Retirement of common stock/cancellation of shares | (100) | (125) | ||
Common stock dividends declared | (78) | |||
Other comprehensive income (loss), net of tax | (2,669) | (2,669) | ||
Balance as of end-of-period at Mar. 31, 2020 | $ 5,071 | $ 8,500 | $ 3,004 | $ 16,575 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash Flows from Operating Activities | ||
Net income (loss) | $ 52 | $ 252 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Realized (gain) loss | 24 | 362 |
Trading securities purchases, sales and maturities, net | 235 | (1,209) |
Amortization of deferred gain on business sold through reinsurance | (11) | (8) |
Deferred acquisition costs, value of business acquired, deferred sales inducements and deferred front-end loads deferrals and interest, net of amortization | (169) | (70) |
Change in premiums and fees receivable | (97) | (37) |
Change in accrued investment income | (37) | (65) |
Change in future contract benefits and other contract holder funds | 1,389 | (348) |
Change in reinsurance related assets and liabilities | (653) | (299) |
Change in accrued expenses | (317) | (56) |
Change in federal income tax accruals | (18) | 16 |
Other | 57 | 131 |
Net cash provided by (used in) operating activities | 455 | (1,331) |
Cash Flows from Investing Activities | ||
Purchases of available-for-sale securities and equity securities | (3,590) | (4,404) |
Sales of available-for-sale securities and equity securities | 395 | 2,381 |
Maturities of available-for-sale securities | 1,317 | 1,456 |
Purchases of alternative investments | (79) | (174) |
Sales and repayments of alternative investments | 55 | 32 |
Issuance of mortgage loans on real estate | (839) | (1,103) |
Repayment and maturities of mortgage loans on real estate | 227 | 242 |
Issuance (repayment) of policy loans, net | (94) | 11 |
Net change in collateral on investments, derivatives and related settlements | 3,411 | 488 |
Other | (61) | (62) |
Net cash provided by (used in) investing activities | 742 | (1,133) |
Cash Flows from Financing Activities | ||
Payment of long-term debt, including current maturities | (300) | |
Issuance of long-term debt, net of issuance costs | 499 | |
Deposits of fixed account values, including the fixed portion of variable | 3,917 | 4,042 |
Withdrawals of fixed account values, including the fixed portion of variable | (1,684) | (1,570) |
Transfers to and from separate accounts, net | 323 | (507) |
Common stock issued for benefit plans | (9) | (26) |
Repurchase of common stock | (225) | (150) |
Dividends paid to common stockholders | (79) | (77) |
Net cash provided by (used in) financing activities | 2,442 | 1,712 |
Net increase (decrease) in cash, invested cash and restricted cash | 3,639 | (752) |
Cash, invested cash and restricted cash as of beginning-of-year | 2,563 | 2,345 |
Cash, invested cash and restricted cash as of end-of-period | $ 6,202 | $ 1,593 |
Nature Of Operations and Basis
Nature Of Operations and Basis Of Presentation | 3 Months Ended |
Mar. 31, 2020 | |
Nature Of Operations and Basis Of Presentation | |
Nature Of Operations and Basis Of Presentation | 1. Nature of Operations and Basis of Presentation Nature of Operations Lincoln National Corporation and its 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 15 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, retirement income and group protection products and solutions. These products primarily 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. 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, 2019 (“2019 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 2019 Form 10-K. 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 three months ended March 31, 2020, are not necessarily indicative of the results that may be expected for the full year ending December 31, 2020, especially when considering the risks and uncertainties associated with the coronavirus, or COVID-19, pandemic and the future impacts of the pandemic on our business, results of operations and financial condition . All material inter-company accounts and transactions have been eliminated in consolidation . |
New Accounting Standards
New Accounting Standards | 3 Months Ended |
Mar. 31, 2020 | |
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 Standards Updates (“ASUs”) issued by the Financial Accounting Standards Board (“FASB”) and the impact of the adoption on our financial statements. ASUs not listed below were assessed and determined to be either not applicable or insignificant in presentation or amount. Standard Description Date of Adoption Effect on Financial Statements or Other Significant Matters ASU 2016-13, Measurement of Credit Losses on Financial Instruments and related amendments These amendments adopt a new model in Accounting Standards Codification TM (“ASC”) Topic 326 to measure and recognize credit losses for most financial assets. The ASU requires a financial asset measured at amortized cost to be presented at the net amount expected to be collected over the life of the asset using an allowance for credit losses. Changes in the allowance are charged to earnings. The measurement of expected credit losses is based on relevant information about past events, including historical experience, as well as current economic conditions and reasonable and supportable forecasts that affect the collectability of the financial asset. The method used to measure estimated credit losses for fixed maturity available-for-sale (“AFS”) 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 securities. The amendments permit entities to recognize improvements in credit loss estimates on fixed maturity AFS securities by reducing the allowance account immediately through earnings. The amendments are 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 The adoption of this standard and related amendments resulted in the recognition of a cumulative effect decrease of $ 218 million, net of deferred acquisition costs (“DAC”), value of business acquired (“VOBA”), deferred sales inducements (“DSI”), deferred front-end loads (“DFEL”) and changes in other contract holder funds, after-tax, to retained earnings. The overall adjustment recorded our allowance for credit losses (“ACL”) as of the date of adoption, primarily related to commercial and residential mortgage loans, as well as reinsurance recoverables. Upon adoption of the standard, the concept of other-than-temporary impairment (“OTTI”) no longer exists; however, our prior period presentation herein is reflective of OTTI recorded in those periods. ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments – Credit Losses, Topic 815, Derivatives and Hedging and Topic 825, Financial Instruments These amendments clarify the measurement, recognition and presentation of the allowance for credit losses on accrued interest receivable balances; the inclusion of recoveries when estimating the allowance for credit losses; the inclusion of all ASC Topic 944 – Financial Services – Insurance reinsurance recoverables within the scope of ASC 326-20; and provide additional targeted clarifications on the calculation of the allowance for credit losses. These amendments also make targeted clarifications to ASC Topics 815 and 825. Early adoption is permitted. January 1, 2020 Our adoption of ASU 2016-13 and related amendments is discussed above. The adoption of the remainder of this guidance did not have a material impact on our consolidated financial condition and results of operations. Standard Description Date of Adoption Effect on Financial Statements or Other Significant Matters ASU 2019-05, Financial Instruments – Credit Losses (Topic 326): Targeted Transition Relief The amendments provide entities that have certain instruments within the scope of Subtopic 326-20, Financial Instruments – Credit Losses – Measured at Amortized Cost , with an option to irrevocably elect the fair value option in Subtopic 825-10, Financial Instruments – Overall , applied on an instrument-by-instrument basis for eligible instruments, upon adoption of ASC Topic 326. January 1, 2020 We recognized a cumulative effect increase to retained earnings of $ 15 million, after-tax, by electing the fair value option for certain mortgage loans in connection with our adoption of ASC Topic 326. 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 2018-12, Targeted Improvements to the Accounting for Long-Duration Contracts and related amendments These amendments make changes to the accounting and reporting for long-duration contracts issued by an insurance entity that will significantly change how insurers account for long-duration contracts, including how they measure, recognize and make disclosures about insurance liabilities and DAC. Under this ASU, insurers will be required to review cash flow assumptions at least annually and update them if necessary. They also will have to make quarterly updates to the discount rate assumptions they use to measure the liability for future policyholder benefits. The ASU creates a new category of market risk benefits (i.e., features that protect the contract holder from capital market risk and expose the insurer to that risk) that insurers will have to measure at fair value. The ASU provides various transition methods by topic that entities may elect upon adoption. The ASU is currently effective January 1, 2022, and early adoption is permitted. January 1, 2022 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 2020-04, Reference Rate Reform (Topic 848) The amendments in this update provide optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. The amendments provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions impacted by reference rate reform. If certain criteria are met, an entity will not be required to remeasure or reassess contracts impacted by reference rate reform. Additionally, changes to the critical terms of a hedging relationship affected by reference rate reform will not require entities to de-designate the relationship if certain requirements are met. The expedients and exceptions provided by the amendments do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. Early adoption was permitted at the time of issuance. Not yet determined We are currently evaluating the impact of adopting this ASU on our consolidated financial condition and results of operations. |
Variable Interest Entities
Variable Interest Entities | 3 Months Ended |
Mar. 31, 2020 | |
Variable Interest Entities [Abstract] | |
Variable Interest Entities | 3. Variable Interest Entities Consolidated VIEs Asset information (dollars in millions) for the consolidated variable interest entities (“VIEs”) included on our Consolidated Balance Sheets was as follows: As of March 31, 2020 As of December 31, 2019 Number Number of Notional Carrying of Notional Carrying Instruments Amounts Value Instruments Amounts Value Assets Total return swap 1 $ 596 $ - 1 $ 613 $ - As of March 31, 2020, and December 31, 2019, there were no gains or losses for consolidated VIEs recognized on our Consolidated Statements of Comprehensive Income (Loss). Unconsolidated VIEs Structured Securities Through our investment activities, we make passive investments in structured securities issued by VIEs for which we are not the manager. These structured securities include our asset-backed securities (“ABS”), residential mortgage-backed securities (“RMBS”), commercial mortgage-backed securities (“CMBS”) and collateralized loan obligations (“CLOs”). We have not provided financial or other support with respect to these VIEs other than our original investment. We have determined that we are not the primary beneficiary of these VIEs due to the relative size of our investment in comparison to the principal amount of the structured securities issued by the VIEs and the level of credit subordination that reduces our obligation to absorb losses or right to receive benefits. Our maximum exposure to loss on these structured securities is limited to the amortized cost for these investments. We recognize our variable interest in these VIEs at fair value on our Consolidated Balance Sheets. For information about these structured securities, see Note 4. 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 $ 2.0 billion and $ 1.9 billion as of March 31, 2020, and December 31, 2019, respectively. Included in these carrying amounts are our investments in qualified affordable housing projects, which were $ 11 million and $ 13 million as of March 31, 2020, and December 31, 2019, 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 less than $ 1 million for the three months ended March 31, 2020 and 2019, 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 March 31, 2020. |
Investments
Investments | 3 Months Ended |
Mar. 31, 2020 | |
Investments [Abstract] | |
Investments | 4. Investments Fixed Maturity AFS Securities In 2020, we adopted ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), which resulted in a new recognition and measurement of credit losses on most financial assets. See Note 2 for additional information. The amortized cost, gross unrealized gains, losses, ACL and fair value of fixed maturity AFS securities (in millions) were as follows: As of March 31, 2020 Amortized Gross Unrealized Fair Cost Gains Losses ACL Value Fixed maturity AFS securities: Corporate bonds $ 80,785 $ 7,031 $ 1,999 $ 20 $ 85,797 U.S. government bonds 380 102 - - 482 State and municipal bonds 4,797 1,123 14 - 5,906 Foreign government bonds 329 63 3 - 389 RMBS 3,014 277 20 - 3,271 CMBS 1,089 39 9 - 1,119 ABS 5,259 59 232 - 5,086 Hybrid and redeemable preferred securities 564 51 59 - 556 Total fixed maturity AFS securities $ 96,217 $ 8,745 $ 2,336 $ 20 $ 102,606 The amortized cost, gross unrealized gains, losses, OTTI and fair value of fixed maturity AFS securities (in millions) were as follows: As of December 31, 2019 Amortized Gross Unrealized Fair Cost Gains Losses OTTI (1) Value Fixed maturity AFS securities: Corporate bonds $ 79,417 $ 9,479 $ 184 $ ( 4 ) $ 88,716 U.S. government bonds 384 51 - - 435 State and municipal bonds 4,778 1,113 7 - 5,884 Foreign government bonds 329 64 - - 393 RMBS 3,042 190 10 ( 19 ) 3,241 CMBS 1,038 45 1 ( 1 ) 1,083 ABS 4,810 62 18 ( 35 ) 4,889 Hybrid and redeemable preferred securities 497 82 20 - 559 Total fixed maturity AFS securities $ 94,295 $ 11,086 $ 240 $ ( 59 ) $ 105,200 (1) Prior to the adoption of ASU 2016-13, we recognized the OTTI attributed to noncredit factors as a separate component in other comprehensive income (loss) (“OCI”) referred to as unrealized OTTI on fixed maturity AFS securities. This includes unrealized (gains) and losses on credit-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 March 31, 2020, were as follows: Amortized Fair Cost Value Due in one year or less $ 3,008 $ 2,980 Due after one year through five years 14,806 14,836 Due after five years through ten years 17,319 17,804 Due after ten years 51,722 57,510 Subtotal 86,855 93,130 Structured securities (RMBS, CMBS, ABS) 9,362 9,476 Total fixed maturity AFS securities $ 96,217 $ 102,606 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 of fixed maturity AFS securities (dollars in millions) for which an allowance for credit losses has not been recorded, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, were as follows: As of March 31, 2020 Less Than or Equal Greater Than to Twelve Months Twelve Months Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses (1) Fixed maturity AFS securities: Corporate bonds $ 21,648 $ 1,745 $ 828 $ 254 $ 22,476 $ 1,999 State and municipal bonds 364 14 - - 364 14 Foreign government bonds 27 3 - - 27 3 RMBS 352 19 5 1 357 20 CMBS 250 9 2 - 252 9 ABS 4,160 196 255 36 4,415 232 Hybrid and redeemable preferred securities 178 22 78 37 256 59 Total fixed maturity AFS securities $ 26,979 $ 2,008 $ 1,168 $ 328 $ 28,147 $ 2,336 Total number of fixed maturity AFS securities in an unrealized loss position 2,724 (1) We recognized $ 22 million of gross unrealized losses in OCI for fixed maturity AFS securities for which an allowance for credit losses has been recorded. The fair value and gross unrealized losses, including the portion of OTTI recognized in OCI, of fixed maturity AFS securities (dollars in millions), aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, were as follows: As of December 31, 2019 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 AFS securities: Corporate bonds $ 2,935 $ 46 $ 1,406 $ 141 $ 4,341 $ 187 State and municipal bonds 333 7 18 - 351 7 RMBS 536 10 15 - 551 10 CMBS 48 1 4 - 52 1 ABS 1,792 8 303 10 2,095 18 Hybrid and redeemable preferred securities 29 1 102 19 131 20 Total fixed maturity AFS securities $ 5,673 $ 73 $ 1,848 $ 170 $ 7,521 $ 243 Total number of fixed maturity AFS securities in an unrealized loss position 895 The fair value, gross unrealized losses (in millions) and number of fixed maturity AFS securities where the fair value had declined and remained below amortized cost by greater than 20% were as follows: As of March 31, 2020 Gross Number Fair Unrealized of Value Losses Securities (1) Less than six months $ 1,528 $ 803 185 Twelve months or greater 50 60 23 Total $ 1,578 $ 863 208 (1) We may reflect a security in more than one aging category based on various purchase dates. The fair value, gross unrealized losses, the portion of OTTI recognized in OCI (in millions) and number of fixed maturity AFS securities where the fair value had declined and remained below amortized cost by greater than 20% were as follows: As of December 31, 2019 Number Fair Gross Unrealized of Value Losses OTTI Securities (1) Less than six months $ 15 $ 5 $ - 7 Six months or greater, but less than nine months 10 3 - 4 Twelve months or greater 132 76 - 31 Total $ 157 $ 84 $ - 42 (1) We may reflect a security in more than one aging category based on various purchase dates. Our gross unrealized losses on fixed maturity AFS securities increased by $ 2.1 billion for the three months ended March 31, 2020. As discussed further below, we believe the unrealized loss position as of March 31, 2020, did not require an impairment recognized in earnings as (i) we did not intend to sell these fixed maturity AFS securities; (ii) it is not more likely than not that we will be required to sell the fixed maturity AFS securities before recovery of their amortized cost basis; and (iii) the difference in the fair value compared to the amortized cost was due to factors other than credit loss. Based upon this evaluation as of March 31, 2020, management believes we have the ability to generate adequate amounts of cash from our normal operations (e.g., insurance premiums, fee income and investment income) to meet cash requirements with a prudent margin of safety without requiring the sale of our impaired securities. The disruption in the financial markets related to the coronavirus, or COVID-19, pandemic in the first quarter of 2020 caused credit spreads to widen since December 31, 2019, resulting in an increase in our gross unrealized losses. As of March 31, 2020, the unrealized losses associated with our corporate, state and municipal and foreign government 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 of each impaired security. As of March 31, 2020, 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 industry 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 impaired security. As of March 31, 2020, 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 impaired security. Evaluation for Credit Loss Impairment We regularly review our fixed maturity AFS securities (also referred to as “debt securities”) for declines in fair value that we determine to be impairment-related, including those attributable to credit risk factors that may require an allowance for credit loss. For our fixed maturity AFS securities, we generally consider the following to determine whether our debt securities with unrealized losses are credit impaired: The estimated range and average period until recovery; The estimated range and average holding period to maturity; Remaining payment terms of the security; Current delinquencies and nonperforming assets of underlying collateral; Expected future default rates; Collateral value by vintage, geographic region, industry concentration or property type; Subordination levels or other credit enhancements as of the balance sheet date as compared to origination; and Contractual and regulatory cash obligations. For a debt security, if we intend to sell a security, or it is more likely than not we will be required to sell a debt security before recovery of its amortized cost basis and the fair value of the debt security is below amortized cost, we conclude that an impairment has occurred and the amortized cost is written down to current fair value with a corresponding charge to realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). If we do not intend to sell a debt security, or it is not more likely than not we will be required to sell a debt security before recovery of its amortized cost basis but the present value of the cash flows expected to be collected is less than the amortized cost of the debt security (referred to as the credit loss), we conclude that an impairment has occurred, and an allowance for credit losses is recorded, with a corresponding charge to realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). The remainder of the decline to fair value related to factors other than credit loss is recorded in OCI to unrealized losses on fixed maturity AFS securities on our Consolidated Statements of Stockholders’ Equity, as this amount is considered a non-credit impairment. When assessing our intent to sell a debt security, or if it is more likely than not we will be required to sell a debt security before recovery of its cost basis, we evaluate facts and circumstances such as, but not limited to, decisions to reposition our security portfolio, sales of securities to meet cash flow needs and sales of securities to capitalize on favorable pricing. Management considers the following as part of the evaluation: The current economic environment and market conditions ; Our business strategy and current business plans ; The nature and type of security, including expected maturities and exposure to general credit, liquidity, market and interest rate risk ; Our analysis of data from financial models and other internal and industry sources to evaluate the current effectiveness of our hedging and overall risk management strategies ; The current and expected timing of contractual maturities of our assets and liabilities, expectations of prepayments on investments and expectations for surrenders and withdrawals of life insurance policies and annuity contracts ; The capital risk limits approved by management ; and Our current financial condition and liquidity demands . Calculation of Credit Impairment In order to determine the amount of the credit loss for a debt security, we calculate the recovery value by performing a discounted cash flow analysis based on the current cash flows and future cash flows we expect to recover. The discount rate is the effective interest rate implicit in the underlying debt security. The effective interest rate is the original yield, or the coupon if the debt security was previously impaired. See the discussion below for additional information on the methodology and significant inputs, by security type, that we use to determine the amount of a credit loss. To determine the recovery period of a debt security, we consider the facts and circumstances surrounding the underlying issuer including, but not limited to, the following: Historical and implied volatility of the security; The extent to which the fair value has been less than amortized cost; Adverse conditions specifically related to the security or to specific conditions in an industry or geographic area; Failure, if any, of the issuer of the security to make scheduled payments; and Recoveries or additional declines in fair value subsequent to the balance sheet date. In periods subsequent to the recognition of a credit loss impairment through an ACL, we continue to reassess the expected cash flows of the fixed maturity AFS security at each subsequent measurement date as necessary. If the measurement of credit loss changes, we recognize a provision for (or reversal of) credit loss expense through realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss), limited by the amount that amortized cost exceeds fair value. Losses are charged against the ACL when management believes the uncollectibility of a fixed maturity AFS security is confirmed or when either of the criteria regarding intent or requirement to sell is met. Accrued interest on fixed maturity AFS securities is written off when deemed uncollectible. Determination of Credit Losses on Corporate Bonds To determine recovery value of a corporate bond, CLO or CDO, we perform additional analysis related to the underlying issuer including, but not limited to, the following: Fundamentals of the issuer to determine what we would recover if they were to file bankruptcy versus the price at which the market is trading; Fundamentals of the industry in which the issuer operates; Earnings multiples for the given industry or sector of an industry that the underlying issuer operates within, divided by the outstanding debt to determine an expected recovery value of the security in the case of a liquidation; Expected cash flows of the issuer (e.g., whether the issuer has cash flows in excess of what is required to fund its operations); Expectations regarding defaults and recovery rates; Changes to the rating of the security by a rating agency; and Additional market information (e.g., if there has been a replacement of the corporate debt security). Credit ratings express opinions about the credit quality of a security. Securities rated investment grade (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 March 31, 2020, and December 31, 2019, 96 % of the fair value of our corporate bond portfolio was rated investment grade. As of March 31, 2020, and December 31, 2019, the portion of our corporate bond portfolio rated below investment grade had an amortized cost of $ 3.9 billion and $ 3.2 billion, respectively, and a fair value of $ 3.5 billion and $ 3.3 billion, respectively. Based upon the analysis discussed above, we believe that as of March 31, 2020, and December 31, 2019, we would have recovered the amortized cost of each corporate bond. Determination of Credit Losses on MBS and ABS Each quarter, we review the cash flows for the MBS portfolio, including current credit enhancements and trends in the underlying collateral performance, to determine whether or not they are sufficient to provide for the recovery of our amortized cost. To determine recovery value of a MBS, we perform additional analysis related to the underlying issuer including, but not limited to, the following: Discounted cash flow analysis based on the current cash flows and future cash flows we expect to recover; Level of borrower creditworthiness of the home equity loans or residential mortgages that back an RMBS or commercial mortgages that back a CMBS; Susceptibility to fair value fluctuations for changes in the interest rate environment; Susceptibility to reinvestment risks, in cases where market yields are lower than the securities’ book yield earned; Susceptibility to reinvestment risks, in cases where market yields are higher than the book yields earned on a security; Expectations of sale of such a security where market yields are higher than the book yields earned on a security; and Susceptibility to variability of prepayments. When evaluating MBS and mortgage-related ABS, we consider a number of pool-specific factors as well as market level factors when determining whether or not the impairment on the security requires an ACL. The most important factor is the performance of the underlying collateral in the security and the trends of that performance in the prior periods. We use this information about the collateral to forecast the timing and rate of mortgage loan defaults, including making projections for loans that are already delinquent and for those loans that are currently performing but may become delinquent in the future. Other factors used in this analysis include the credit characteristics of borrowers, geographic distribution of underlying loans and timing of liquidations by state. Once default rates and timing assumptions are determined, we then make assumptions regarding the severity of a default if it were to occur. Factors that impact the severity assumption include expectations for future home price appreciation or depreciation, loan size, first lien versus second lien, existence of loan level private mortgage insurance, type of occupancy and geographic distribution of loans. 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. Once default and severity assumptions are determined for the security in question, cash flows for the underlying collateral are projected including expected defaults and prepayments. These cash flows on the collateral are then translated to cash flows on our tranche based on the cash flow waterfall of the entire capital security structure. If this analysis indicates the entire principal on a particular security will not be returned, the security is reviewed for a credit loss by comparing the expected cash flows to amortized cost. To the extent that the security has already been impaired through a recognized ACL or was purchased at a discount, such that the amortized cost of the security is less than or equal to the present value of cash flows expected to be collected, no ACL is required. Otherwise, if the amortized cost of the security is greater than the present value of the cash flows expected to be collected, and the security was not purchased at a discount greater than the expected principal loss, then an impairment through an ACL is recognized. We further monitor the cash flows of all of our fixed maturity AFS securities backed by mortgages on an ongoing basis. We also perform detailed analysis on all of our subprime, Alt-A, non-agency residential MBS and on a significant percentage of our fixed maturity AFS securities backed by pools of commercial mortgages. The detailed analysis includes revising projected cash flows by updating the cash flows for actual cash received and applying assumptions with respect to expected defaults, foreclosures and recoveries in the future. These revised projected cash flows are then compared to the amount of credit enhancement (subordination) in the structure to determine whether the amortized cost of the security is recoverable. If it is not recoverable, we record an impairment through an ACL for the security. Changes in the allowance for credit losses on fixed maturity AFS securities (in millions) for the three months ended March 31, 2020, aggregated by investment category, were as follows: Corporate Bonds RMBS ABS Other Total Balance as of beginning-of-year $ - $ - $ - $ - $ - Additions for securities for which credit losses were not previously recognized 20 - - - 20 Additions from purchases of PCD debt securities (1) - - - - - Balance as of end-of-period (2) $ 20 $ - $ - $ - $ 20 (1) Represents purchased credit-deteriorated (“PCD”) fixed maturity AFS securities. (2) Accrued interest receivable on fixed maturity AFS securities totaled $ 1.0 billion as of March 31, 2020, and was excluded from the estimate of credit losses. 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 Months Ended March 31, 2019 Balance as of beginning-of-year $ 355 Increases attributable to: Credit losses on securities for which an OTTI was not previously recognized 6 Credit losses on securities for which an OTTI was previously recognized 2 Decreases attributable to: Securities sold, paid down or matured ( 4 ) Balance as of end-of-period $ 359 Mortgage Loans on Real Estate Mortgage loans on real estate consist of commercial and residential mortgage loans and are generally carried at unpaid principal balances adjusted for amortization of premiums and accretion of discounts and are net of allowances for credit losses. We carry certain commercial mortgage loans at fair value where the fair value option has been elected. Interest income is accrued on the principal balance of the loan based on the loan’s contractual interest rate. Premiums and discounts are amortized using the effective yield method over the life of the loan. Interest income and amortization of premiums and discounts are reported in net investment income on our Consolidated Statements of Comprehensive Income (Loss) along with mortgage loan fees, which are recorded as they are incurred. Our policy for commercial mortgage loans is to report loans that are 60 or more days past due, which equates to two or more payments missed, as delinquent. Our policy for residential mortgage loans is to report loans that are 90 or more days past due, which equates to three or more payments missed, as delinquent. We do not accrue interest on loans 90 days past due, and any interest received on these loans is either applied to the principal or recorded in net investment income on our Consolidated Statements of Comprehensive Income (Loss) when received, depending on the assessment of the collectability of the loan. We resume accruing interest once a loan complies with all of its original terms or restructured terms. Mortgage loans deemed uncollectible are charged against the allowance for credit losses, and subsequent recoveries, if any, are likewise credited to the allowance for credit losses. Accrued interest on mortgage loans is written off when deemed uncollectible. The following provides the current and past due composition of our mortgage loans on real estate (in millions): As of March 31, 2020 As of December 31, 2019 Commercial Residential Total Commercial Residential Total Current $ 16,168 $ 707 $ 16,875 $ 15,620 $ 659 $ 16,279 30 to 59 days past due - 16 16 3 27 30 60 to 89 days past due - 4 4 - 10 10 90 or more days past due - 23 23 - 16 16 Allowance for credit losses ( 126 ) ( 35 ) ( 161 ) - ( 2 ) ( 2 ) Unamortized premium (discount) ( 16 ) 24 8 ( 17 ) 23 6 Mark-to-market gains (losses) (1) 26 - 26 - - - Total carrying value $ 16,052 $ 739 $ 16,791 $ 15,606 $ 733 $ 16,339 (1) Represents the mark-to-market on certain commercial mortgage loans on real estate for which we have elected the fair value option. See Note 14 for additional information. Our commercial mortgage loan portfolio has the largest concentrations in California, which accounted for 24 % of commercial mortgage loans on real estate as of March 31, 2020, and December 31, 2019, and Texas, which accounted for 11 % of commercial mortgage loans on real estate as of March 31, 2020, and December 31, 2019. Our residential mortgage loan portfolio has the largest concentrations in California, which accounted for 34 % of residential mortgage loans on real estate as of March 31, 2020, and December 31, 2019, and Florida, which accounted for 18 % and 20 % of residential mortgage loans on real estate as of March 31, 2020, and December 31, 2019, respectively. As of March 31, 2020, and December 31, 2019, we had 44 and 38 residential mortgage loans, respectively, that were either delinquent or in foreclosure. Evaluation for Credit Losses on Mortgage Loans on Real Estate In connection with our recognition of an allowance for credit losses for mortgage loans on real estate, we perform a quantitative analysis using a probability of default/loss given default/exposure at default approach to estimate expected credit losses in our mortgage loan portfolio as well as unfunded commitments related to commercial mortgage loans, exclusive of certain mortgage loans held at fair value. Our model estimates expected credit losses over the contractual terms of the loans, which are the periods over which we are exposed to credit risk, adjusted for expected prepayments. Credit loss estimates are segmented by commercial mortgage loans, residential mortgage loans, and unfunded commitments related to commercial mortgage loans. The allowance for credit losses for pooled loans of similar risk (i.e., commercial and residential mortgage loans) is estimated using relevant historical credit loss information adjusted for current conditions and reasonable and supportable forecasts of future conditions . Historical credit loss experience provides the basis for the estimation of expected credit losses with adjustments for differences in current loan-specific risk characteristics, such as differences in underwriting standards, portfolio mix, delinquency level, or term lengths as well as adjustments for changes in environmental conditions, such as unemployment rates, property values, or other factors that management deems relevant. We apply probability weights to the positive, base and adverse scenarios we use. For periods beyond our reasonable and supportable forecast, we use implicit mean reversion over the remaining life of the recoverable, meaning our model will inherently revert to the baseline scenario as the baseline is representative of the historical average over a longer period of time. Allowances for credit losses are maintained at a level we believe is adequate to absorb current expected lifetime credit losses. Our periodic evaluation of the adequacy of the allowances for credit losses is based on historical loss experience, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay (including the timing of future payments), the estimated value of the underlying collateral, composition of the loan portfolio, current economic conditions, reasonable and supportable forecasts about the future and other relevant factors. Loans are considered impaired when it is probable that, based upon current information and events, we will be unable to collect all amounts due under the contractual terms of the loan agreement. When we determine that a loan is impaired, a specific allowance for credit losses is established for the excess carrying value of the loan over its estimated value. The loan’s estimated value is based on: the present value of expected future cash flows discounted at the loan’s effective interest rate; the loan’s observable market price; or the fair value of the loan’s collateral. Mortgage loans on real estate are presented net of the allowance for credit losses on our Consolidated Balance Sheets. Changes in the allowance are reported in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). Mortgage loans on real estate deemed uncollectible are charged against the ACL, and subsequent recoveries, if any, are credited to the ACL, limited to the aggregate of amounts previously charged-off and expected to be charged-off. Determination of Credit Losses on Commercial Mortgage Loans on Real Estate Our commercial loan portfolio is primarily comprised of long-term loans secured by existing commercial real estate. We believe all of the commercial loans in our portfolio share three primary risks: borrower credit worthiness; sustainability of the cash flow of the property; and market risk; therefore, our methods of monitoring and assessing credit risk are consistent for our entire portfolio. For our commercial mortgage loan portfolio, trends in market vacancy and rental rates are incorporated into the analysis that we perform for monitored loans and may contribute to the establishment of (or an increase or decrease in) an allowance for credit losses. In addition, we review each loan individually in our commercial mortgage loan portfolio on an annual basis to identify emerging risks. We focus on properties that experienced a reduction in debt-service coverage or that have significant exposure to tenants with deteriorating credit profiles. Where warranted, we establish or increase an allowance for credit losses for a specific loan based upon this analysis. We measure and assess the credit quality of our commercial mortgage loans by using loan-to-value and debt-service coverage ratios. The loan-to-value ratio compares the principal amount of the loan to the fair value at origination of the underlying property collateralizing the loan and is commonly expressed as a percentage. Loan-to-value ratios greater than 100 % indicate that the principal amount is greater than the collateral value. Therefore, all else being equal, a lower loan-to-value ratio generally indicates a higher quality loan. The debt-service coverage ratio compares a property’s net operating income to its debt-service payments. Debt-service coverage ratios of less than 1.0 indicate that property operations do not generate enough income to cover its current debt payments. Therefore, all else being equal, a higher debt-service coverage ratio generally indicates a higher quality loan. These credit quality metrics are monitored and reviewed at least annually. For our commercial mortgage loans, there were two specifically identified impaired loans with an aggregate carrying value of less than $ 1 million as of March 31, 2020. There was one specifically identified impaired loan with a carrying value of less than $ 1 million as of December 31, 2019. Most of our off-balance sheet commitments relate to commercial mortgage loans. As such, the estimate is developed based on the commercial mortgage loan process outlined above, along with an internally developed conversion factor. Determination of Credit Losses on Residential Mortgage Loans on Real Estate Our residential loan portfolio is primarily comprised of first lien mortgages secured by existing residential real estate. Residential mortgage loans are primarily smaller-balance homogenous loans that share similar risk characteristics. Therefore, these pools of loans are collectively evaluated for inherent credit losses. Such evaluations consider numerous factors, including, but not limited to borrower credit scores, collateral values, loss forecasts, geographic location, delinquency rates and economic trends. These evaluations and assessments are revised as conditions change and new information becomes available, including updated forecasts, which can cause the allowances for credit losses to increase or decrease over time as such evaluations are revised. Generally, residential mortgage loan pools exclude loans that are nonperforming as those loans are evaluated individually using the evaluation framework for specific allowances for credit losses described above. For residential mortgage loans, our primar |
Derivative Instruments
Derivative Instruments | 3 Months Ended |
Mar. 31, 2020 | |
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, basis risk and credit risk. We assess these risks by continually identifying and monitoring changes in our exposures that may adversely affect expected future cash flows and by evaluating hedging opportunities. Derivative activities are monitored by various management committees. The committees are responsible for overseeing the implementation of various hedging strategies that are developed through the analysis of financial simulation models and other internal and industry sources. The resulting hedging strategies are incorporated into our overall risk management strategies. See Note 14 for additional disclosures related to the fair value of our derivative instruments. Interest Rate Contracts We use derivative instruments as part of our interest rate risk management strategy. These instruments are economic hedges unless otherwise noted and include: Forward-Starting Interest Rate Swaps We use forward-starting interest rate swaps designated and qualifying as cash flow hedges to hedge our exposure to interest rate fluctuations related to the forecasted purchases of certain assets and anticipated issuances of fixed-rate securities. We also use forward-starting interest rate swaps to hedge the interest rate exposure within our life products related to the forecasted purchases of certain assets. Interest Rate Cap Corridors We use interest rate cap corridors to provide a level of protection from the effect of rising interest rates for certain life insurance products and annuity contracts. Interest rate cap corridors involve purchasing an interest rate cap at a specific cap rate and selling an interest rate cap with a higher cap rate. For each corridor, the amount of quarterly payments, if any, is determined by the rate at which the underlying index rate resets above the original capped rate. The corridor limits the benefit the purchaser can receive as the related interest rate index rises above the higher capped rate. There is no additional liability to us other than the purchase price associated with the interest rate cap corridor. Interest Rate Futures We use interest rate futures contracts to hedge the liability exposure on certain options in variable annuity products. These futures contracts require payment between our counterparty and us on a daily basis for changes in the futures index price. Interest Rate Swap Agreements We use interest rate swap agreements to hedge the liability exposure on certain options in variable annuity products. We also use interest rate swap agreements designated and qualifying as cash flow hedges to hedge the interest rate risk of floating-rate bond coupon payments by replicating a fixed-rate bond. Finally, we use interest rate swap agreements designated and qualifying as fair value hedges to hedge against changes in the fair value of certain fixed-rate long-term debt and fixed maturity securities due to interest rate risks. Treasury and Reverse Treasury Locks We use treasury locks designated and qualifying as cash flow hedges to hedge the interest rate exposure related to our issuance of fixed-rate securities or the anticipated future cash flows of floating-rate fixed maturity securities due to changes in interest rates. In addition, we use reverse treasury locks designated and qualifying as cash flow hedges to hedge the interest rate exposure related to the anticipated purchase of fixed-rate securities or the anticipated future cash flows of floating-rate fixed maturity securities due to changes in interest rates. These derivatives are primarily structured to hedge interest rate risk inherent in the assumptions used to price certain liabilities. Foreign Currency Contracts We use derivative instruments as part of our foreign currency risk management strategy. These instruments are economic hedges unless otherwise noted and include: Currency Futures We use currency futures to hedge foreign exchange risk associated with certain options in variable annuity products. Currency futures exchange one currency for another at a specified date in the future at a specified exchange rate. Foreign Currency Swaps We use foreign currency swaps to hedge foreign exchange risk of investments in fixed maturity securities denominated in foreign currencies. A foreign currency swap is a contractual agreement to exchange one currency for another at specified dates in the future at a specified exchange rate. We also use foreign currency swaps designated and qualifying as cash flow hedges to hedge foreign exchange risk of investments in fixed maturity securities denominated in foreign currencies. Foreign Currency Forwards We use foreign currency forwards to hedge foreign exchange risk of investments in fixed maturity securities denominated in foreign currencies. A foreign currency forward is a contractual agreement to exchange one currency for another at specified dates in the future at a specified current exchange rate. Equity Market Contracts We use derivative instruments as part of our equity market risk management strategy that are economic hedges and include: Call Options Based on the S&P 500 and Other Indices We use call options to hedge the liability exposure on certain options in variable annuity products. Our indexed annuity and IUL contracts permit the holder to elect an interest rate return or an equity market component, where interest credited to the contracts is linked to the performance of the Standard & Poor's 500 Index (“S&P 500”) or other indices. Contract holders may elect to rebalance index options at renewal dates. At the end of each indexed term, which can be up to six years , we have the opportunity to re-price the indexed component by establishing participation rates, caps, spreads and specified rates, subject to contractual guarantees. We use call options that are highly correlated to the portfolio allocation decisions of our contract holders, such that we are economically hedged with respect to equity returns for the current reset period. Consumer Price Index Swaps We use consumer price index swaps to hedge the liability exposure on certain options in fixed annuity products. Consumer price index swaps are contracts entered into at no cost and whose payoff is the difference between the consumer price index inflation rate and the fixed-rate determined as of inception. Equity Futures We use equity futures contracts to hedge the liability exposure on certain options in variable annuity products. These futures contracts require payment between our counterparty and us on a daily basis for changes in the futures index price. Put Options We use put options to hedge the liability exposure on certain options in variable annuity products. Put options are contracts that require counterparties to pay us at a specified future date the amount, if any, by which a specified equity index is less than the strike rate stated in the agreement, applied to a notional amount. Total Return Swaps We use total return swaps to hedge the liability exposure on certain options in variable annuity products. In addition, we use total return swaps to hedge a portion of the liability related to our deferred compensation plans. We receive the total return on a portfolio of indexes and pay a floating-rate of interest. Credit Contracts We use derivative instruments as part of our credit risk management strategy that are economic hedges and include: Credit Default Swaps – Buying Protection We use credit default swaps to hedge the liability exposure on certain options in variable annuity products. We buy credit default swaps to hedge against a drop in bond prices due to credit concerns of certain bond issuers. A credit default swap allows us to put the bond back to the counterparty at par upon a default event by the bond issuer. A default event is defined as bankruptcy, failure to pay, obligation acceleration or restructuring. Credit Default Swaps – Selling Protection We use credit default swaps to hedge the liability exposure on certain options in variable annuity products. We sell credit default swaps to offer credit protection to contract holders and investors. The credit default swaps hedge the contract holders and investors against a drop in bond prices due to credit concerns of certain bond issuers. A credit default swap allows the investor to put the bond back to us at par upon a default event by the bond issuer. A default event is defined as bankruptcy, failure to pay, obligation acceleration or restructuring. Embedded Derivatives We have embedded derivatives that include: GLB Reserves Embedded Derivatives We use a hedging strategy designed to mitigate the risk and income statement volatility caused by changes in the equity markets, interest rates and volatility associated with guaranteed living benefits (“GLBs”) offered in our variable annuity products, including products with guaranteed withdrawal benefit (“GWB”) and guaranteed income benefit (“GIB”) features. Changes in the value of the hedge contracts due to changes in equity markets, interest rates and implied volatilities hedge the income statement effect of changes in embedded derivative GLB reserves caused by those same factors. We rebalance our hedge positions based upon changes in these factors as needed. While we actively manage our hedge positions, these hedge positions may not be totally effective in offsetting changes in the embedded derivative reserve due to, among other things, differences in timing between when a market exposure changes and corresponding changes to the hedge positions, extreme swings in the equity markets and interest rates, market volatility, contract holder behavior, divergence between the performance of the underlying funds and the hedging indices, divergence between the actual and expected performance of the hedge instruments and our ability to purchase hedging instruments at prices consistent with our desired risk and return trade-off. Certain features of these guarantees have elements of both insurance benefits accounted for under the Financial Services – Insurance – Claim Costs and Liabilities for Future Policy Benefits Subtopic of the FASB ASC (“benefit reserves”) and embedded derivatives accounted for under the Derivatives and Hedging and the Fair Value Measurements and Disclosures Topics of the FASB ASC (“embedded derivative reserves”). We calculate the value of the benefit reserves and the embedded derivative reserves based on the specific characteristics of each GLB feature. Indexed Annuity and IUL Contracts Embedded Derivatives Our indexed annuity and IUL contracts permit the holder to elect an interest rate return or an equity market component, where interest credited to the contracts is linked to the performance of the S&P 500 or other indices. Contract holders may elect to rebalance index options at renewal dates. At the end of each indexed term, which can be up to six years, we have the opportunity to re-price the indexed component by establishing participation rates, caps, spreads and specified rates, subject to contractual guarantees. We use options that are highly correlated to the portfolio allocation decisions of our contract holders, such that we are economically hedged with respect to equity returns for the current reset period. Reinsurance Related Embedded Derivatives We have certain modified coinsurance (“Modco”) and coinsurance with funds withheld reinsurance agreements with embedded derivatives related to the withheld assets of the related funds. These derivatives are considered total return swaps with contractual returns that are attributable to various assets and liabilities associated with these reinsurance agreements. We have derivative instruments with off-balance-sheet risks whose notional or contract amounts exceed the related credit exposure. Outstanding derivative instruments with off-balance-sheet risks (in millions) were as follows: As of March 31, 2020 As of December 31, 2019 Notional Fair Value Notional Fair Value Amounts Asset Liability Amounts Asset Liability Qualifying Hedges Cash flow hedges: Interest rate contracts (1) $ 2,397 $ 334 $ 853 $ 2,387 $ 108 $ 245 Foreign currency contracts (1) 2,912 606 13 2,874 191 51 Total cash flow hedges 5,309 940 866 5,261 299 296 Fair value hedges: Interest rate contracts (1) 1,170 - 337 1,261 123 203 Non-Qualifying Hedges Interest rate contracts (1) 119,681 1,890 140 112,921 1,082 219 Foreign currency contracts (1) 166 11 - 262 1 3 Equity market contracts (1) 55,784 2,819 1,112 43,555 1,442 664 Credit contracts (1) 394 - - 55 - - Embedded derivatives: GLB direct (2) - - 4,596 - 450 - GLB ceded (2) - 728 - - 60 9 Reinsurance related (3) - 137 - - - 327 Indexed annuity and IUL contracts (2) (4) - 799 1,380 - 927 2,585 Total derivative instruments $ 182,504 $ 7,324 $ 8,431 $ 163,315 $ 4,384 $ 4,306 (1) Reported in derivative investments and other liabilities on our Consolidated Balance Sheets. (2) Reported in other assets and other liabilities on our Consolidated Balance Sheets. (3) Reported in reinsurance related embedded derivatives on our Consolidated Balance Sheets. (4) Reported in future contract benefits on our Consolidated Balance Sheets. The maturity of the notional amounts of derivative instruments (in millions) was as follows: Remaining Life as of March 31, 2020 Less Than 1 - 5 6 - 10 11 - 30 Over 30 1 Year Years Years Years Years Total Interest rate contracts (1) $ 15,089 $ 48,226 $ 24,802 $ 33,300 $ 1,831 $ 123,248 Foreign currency contracts (2) 146 370 1,013 1,507 42 3,078 Equity market contracts 30,822 14,314 4,343 11 6,294 55,784 Credit contracts - - 394 - - 394 Total derivative instruments with notional amounts $ 46,057 $ 62,910 $ 30,552 $ 34,818 $ 8,167 $ 182,504 (1) As of March 31, 2020, the latest maturity date for which we were hedging our exposure to the variability in future cash flows for these instruments was April 20, 2067 . (2) As of March 31, 2020, the latest maturity date for which we were hedging our exposure to the variability in future cash flows for these instruments was June 17, 2050 . The following amounts (in millions) were recorded on the Consolidated Balance Sheets related to cumulative basis adjustments for fair value hedges: Cumulative Fair Value Hedging Adjustment Included Amortized Cost of the in the Amortized Cost of the Hedged Assets/(Liabilities) Hedged Asset/(Liabilities) As of As of As of As of March 31, December 31, March 31, December 31, 2020 2019 2020 2019 Line Item in the Consolidated Balance Sheets in which the Hedged Item is Included AFS fixed maturity securities, at fair value $ 890 $ 776 $ 328 $ 202 Long-term debt (1) ( 954 ) ( 1,035 ) ( 79 ) ( 160 ) (1) The balance includes $( 381 ) million and $( 118 ) million of unamortized adjustments from discontinued hedges as of March 31, 2020 and December 31, 2019, respectively. The change in our unrealized gain (loss) on derivative instruments within accumulated other comprehensive income (loss) (“AOCI”) (in millions) was as follows: For the Three Months Ended March 31, 2020 2019 Unrealized Gain (Loss) on Derivative Instruments Balance as of beginning-of-year $ ( 11 ) $ 139 Other comprehensive income (loss): Cash flow hedges: Interest rate contracts ( 383 ) ( 47 ) Foreign currency contracts 312 11 Change in foreign currency exchange rate adjustment 153 ( 14 ) Change in DAC, VOBA, DSI and DFEL ( 53 ) 6 Income tax benefit (expense) ( 8 ) 10 Less: Reclassification adjustment for gains (losses) included in net income (loss): Cash flow hedges: Interest rate contracts (1) - 1 Interest rate contracts (2) ( 3 ) ( 1 ) Foreign currency contracts (1) 11 7 Foreign currency contracts (3) 1 1 Associated amortization of DAC, VOBA, DSI and DFEL ( 6 ) ( 1 ) Income tax benefit (expense) ( 1 ) ( 1 ) Balance as of end-of-period $ 8 $ 99 (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 effects of qualifying and non-qualifying hedges (in millions) on the Consolidated Statements of Comprehensive Income (Loss) were as follows: Gain (Loss) Recognized in Income For the Three Months Ended March 31, 2020 Realized Net Interest Gain Investment and Debt (Loss) Income Expense Total Line Items in which the Effects of Fair Value or Cash Flow Hedges are Recorded $ ( 24 ) $ 1,375 $ 68 Qualifying Hedges Gain or (loss) on fair value hedging relationships: Interest rate contracts: Hedged items - 127 82 Derivatives designated as hedging instruments - ( 127 ) ( 82 ) Gain or (loss) on cash flow hedging relationships: Interest rate contracts: Amount of gain or (loss) reclassified from AOCI into income - - ( 3 ) Foreign currency contracts: Amount of gain or (loss) reclassified from AOCI into income 1 11 - Non-Qualifying Hedges Interest rate contracts 2,150 - - Equity market contracts 1,070 - - Credit contracts ( 4 ) - - Embedded derivatives: GLB ( 4,369 ) - - Reinsurance related 463 - - Indexed annuity and IUL contracts 1,028 - - Gain (Loss) Recognized in Income For the Three Months Ended March 31, 2019 Realized Net Interest Gain Investment and Debt (Loss) Income Expense Total Line Items in which the Effects of Fair Value or Cash Flow Hedges are Recorded $ ( 362 ) $ 1,251 $ 71 Qualifying Hedges Gain or (loss) on fair value hedging relationships: Interest rate contracts: Hedged items - 24 ( 34 ) Derivatives designated as hedging instruments - ( 24 ) 34 Gain or (loss) on cash flow hedging relationships: Interest rate contracts: Amount of gain or (loss) reclassified from AOCI into income - 1 ( 1 ) Foreign currency contracts: Amount of gain or (loss) reclassified from AOCI into income 1 7 - Non-Qualifying Hedges Interest rate contracts 357 - - Equity market contracts ( 458 ) - - Embedded derivatives: GLB 286 - - Reinsurance related ( 174 ) - - Indexed annuity and IUL contracts ( 239 ) - - As of March 31, 2020, $ 33 million of the deferred net gains (losses) on derivative instruments in AOCI 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 three months ended March 31, 2020 and 2019 , 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. I nformation related to our credit default swaps for which we are the seller (dollars in millions) was as follows: As of March 31, 2020 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 6/20/2025 (3) (4) BBB+ 4 $ ( 2 ) $ 394 As of December 31, 2019 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 12/20/2024 (3) (4) BBB+ 1 $ 1 $ 55 (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. Details underlying the associated collateral of our credit default swaps for which we are the seller if credit risk-related contingent features were triggered (in millions) were as follows: As of As of March 31, December 31, 2020 2019 Maximum potential payout $ 394 $ 55 Less: Counterparty thresholds - - Maximum collateral potentially required to post $ 394 $ 55 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 $ 2 million of collateral as of March 31, 2020. 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 March 31, 2020, the NPR adjustment was zero . 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. We did no t have any exposure as of March 31, 2020, or December 31, 2019. The amounts recognized (in millions) by S&P credit rating of counterparty, for which we had the right to reclaim cash collateral or were obligated to return cash collateral, were as follows: As of March 31, 2020 As of December 31, 2019 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- $ 521 $ ( 599 ) $ 441 $ ( 167 ) A+ 2,674 ( 493 ) 555 ( 339 ) A 35 - 36 - A- 712 ( 397 ) 355 ( 51 ) BBB+ - - - - $ 3,942 $ ( 1,489 ) $ 1,387 $ ( 557 ) Balance Sheet Offsetting Information related to the effects of offsetting (in millions) was as follows: As of March 31, 2020 Embedded Derivative Derivative Instruments Instruments Total Financial Assets Gross amount of recognized assets $ 5,634 $ 1,664 $ 7,298 Gross amounts offset ( 1,217 ) - ( 1,217 ) Net amount of assets 4,417 1,664 6,081 Gross amounts not offset: Cash collateral ( 3,942 ) - ( 3,942 ) Non-cash collateral ( 151 ) - ( 151 ) Net amount $ 324 $ 1,664 $ 1,988 Financial Liabilities Gross amount of recognized liabilities $ 1,688 $ 5,976 $ 7,664 Gross amounts offset ( 25 ) - ( 25 ) Net amount of liabilities 1,663 5,976 7,639 Gross amounts not offset: Cash collateral ( 1,489 ) - ( 1,489 ) Non-cash collateral - - - Net amount $ 174 $ 5,976 $ 6,150 As of December 31, 2019 Embedded Derivative Derivative Instruments Instruments Total Financial Assets Gross amount of recognized assets $ 2,619 $ 1,437 $ 4,056 Gross amounts offset ( 708 ) - ( 708 ) Net amount of assets 1,911 1,437 3,348 Gross amounts not offset: Cash collateral ( 1,387 ) - ( 1,387 ) Non-cash collateral ( 242 ) - ( 242 ) Net amount $ 282 $ 1,437 $ 1,719 Financial Liabilities Gross amount of recognized liabilities $ 1,005 $ 2,921 $ 3,926 Gross amounts offset ( 138 ) - ( 138 ) Net amount of liabilities 867 2,921 3,788 Gross amounts not offset: Cash collateral ( 557 ) - ( 557 ) Non-cash collateral - - - Net amount $ 310 $ 2,921 $ 3,231 |
Federal Income Taxes
Federal Income Taxes | 3 Months Ended |
Mar. 31, 2020 | |
Federal Income Taxes [Abstract] | |
Federal Income Taxes | 6. Federal Income Taxes The effective tax rate is the ratio of tax expense (benefit) over pre-tax income (loss). The effective tax rate was - 53 % and 6 % for the three months ended March 31, 2020 and 2019, respectively. The effective tax rate on pre-tax income is typically lower than the prevailing corporate federal income tax rate of 21 % due to benefits from preferential tax items including the separate accounts dividends-received deduction and tax credits. The current quarter’s effective tax rate was lower than the comparable quarter in the prior year primarily as a result of the effects of preferential tax items being additive to the tax benefit at 21% on unfavorable variable annuity net derivative results, resulting in a calculated tax benefit on pre-tax income and an associated negative tax rate. |
Reinsurance
Reinsurance | 3 Months Ended |
Mar. 31, 2020 | |
Reinsurance [Abstract] | |
Reinsurance | 7. Reinsurance Adoption of ASU 2016-13 In 2020, we adopted ASU 2016-13, which resulted in a new recognition and measurement of credit losses on most financial assets. See Note 2 for additional information. We established an allowance for credit losses of $ 192 million as of January 1, 2020, for reinsurance-related assets for the risk of credit losses inherent in reinsurance transactions. We estimated an allowance for credit losses for all reinsurance recoverables and related reinsurance deposit assets held by our subsidiaries. As such, we performed a quantitative analysis using a probability of loss approach to estimate expected credit losses for reinsurance recoverables, inclusive of similar assets recognized using the deposit method of accounting. The ACL is a general allowance for credit losses for pools of receivables with similar risk characteristics segmented by credit risk ratings and receivables assessed on an individual basis that do not share similar risk characteristics where we anticipate a credit loss over the life of reinsurance-related assets. Our model uses relevant internal or external historical loss information adjusted for current conditions and reasonable and supportable forecasts of future events and conditions in developing our loss estimate. We utilized historical credit rating data to form an estimation of probability of default of counterparties by means of a transition matrix that provides the rates of credit migration for credit ratings transitioning to impairment. We updated reinsurer credit ratings during the quarter to incorporate the most up-to-date information on the current state of the financial stability of our reinsurers. To simulate changes in economic conditions, we used positive, base and adverse scenarios that include varying levels of loss given default assumptions to reflect the impact of changes in severity of losses. We applied probability weights to the positive, base and adverse scenarios. For periods beyond our reasonable and supportable forecasts, we used implicit mean reversion over the remaining life of the recoverable. Additionally, we considered factors that impact our exposure at default that are driven by actuarial expectations around term and mortality assumptions rather than being directly driven by market or economic environment. Our model estimates the expected credit losses over the life of the reinsurance asset. Credit loss estimates are segmented based on counterparty credit risk. Our modeling process utilizes counterparty credit ratings, collateral types and amounts, and term and run-off assumptions. For reinsurance recoverables that do not share similar risk characteristics, we assessed on an individual basis to determine a specific allowance for credit losses. We estimated expected credit losses over the contractual term of the recoverable, which is the period during which we are exposed to the credit risk. Reinsurance recoverables may not have explicit contractual lives, but are tied to the underlying insurance products; as a result, we estimated the contractual life by utilizing actuarial estimates of the timing of payouts related to those underlying products. Reinsurance treaties often require the reinsurer to collateralize the recoverable with funds in a trust account for the benefit of the ceding insurance entity that can reduce the expected credit losses on a given treaty. As such, we review reinsurance collateral by individual treaty to sensitize risk of loss based on level of collateralization. This review is driven by the assumption that non-collateralized reinsurance recoverables would have materially higher losses in time of default. Therefore, reinsurance recoverables are pooled as either fully-collateralized or non-collateralized. Reinsurance recoverables are presented net of the allowance for credit losses on our Consolidated Balance Sheets. Changes in the ACL are reported in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). Reinsurance recoverables deemed uncollectible are charged against the ACL, and subsequent recoveries, if any, are credited to the ACL, limited to the aggregate of amounts previously charged-off and expected to be charged-off. Modco Agreements Some portions of our annuity business have been reinsured on a Modco basis with other companies. In a Modco agreement, we as the ceding company retain the reserves, as well as the assets backing those reserves, and the reinsurer shares proportionally in all financial terms of the reinsured policies based on their respective percentage of the risk. Effective October 1, 2018, we entered into one such Modco agreement with Athene Holding Ltd. (“Athene”) to reinsure fixed and fixed indexed annuity products, which resulted in a deposit asset of $ 6.3 billion and $ 6.6 billion as of March 31, 2020, and December 31, 2019, respectively, within other assets on our Consolidated Balance Sheets. We held investments of $ 6.2 billion as of March 31, 2020, in support of reserves associated with the transaction in a Modco investment portfolio. As of March 31, 2020, the portfolio included trading securities, fixed maturity AFS securities, commercial mortgage loans, cash and invested cash, other investments, derivative investments, accrued investment income and equity securities that had carrying values of $ 3.0 billion, $ 1.8 billion, $ 765 million, $ 378 million, $ 111 million, $ 49 million, $ 48 million and $ 14 million, respectively. In addition, the portfolio was supported by $ 175 million of over-collateralization and a $ 188 million letter of credit as of March 31, 2020. |
Guaranteed Benefit Features
Guaranteed Benefit Features | 3 Months Ended |
Mar. 31, 2020 | |
Guaranteed Benefit Features [Abstract] | |
Guaranteed Benefit Features | 8. Guaranteed Benefit Features Information on the guaranteed death benefit (“GDB”) features outstanding (dollars in millions) was as follows: As of As of March 31, December 31, 2020 (1) 2019 (1) Return of Net Deposits Total account value $ 88,627 $ 101,601 Net amount at risk (2) 1,563 71 Average attained age of contract holders 65 years 65 years Minimum Return Total account value $ 76 $ 92 Net amount at risk (2) 17 13 Average attained age of contract holders 78 years 77 years Guaranteed minimum return 5 % 5 % Anniversary Contract Value Total account value $ 21,713 $ 25,763 Net amount at risk (2) 2,401 384 Average attained age of contract holders 72 years 71 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 Three Months Ended March 31, 2020 2019 Balance as of beginning-of-year $ 117 $ 161 Changes in reserves 106 ( 36 ) Benefits paid ( 8 ) ( 6 ) Balance as of end-of-period $ 215 $ 119 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 March 31, December 31, 2020 2019 Asset Type Domestic equity $ 52,454 $ 64,093 International equity 15,998 19,852 Fixed income 38,522 41,405 Total $ 106,974 $ 125,350 Percent of total variable annuity separate account values 98 % 98 % Secondary Guarantee Products Future contract benefits and other contract holder funds include reserves for our secondary guarantee products sold through our Life Insurance segment. Reserves on UL and VUL products with secondary guarantees represented 37 % of total life insurance in-force reserves as of March 31, 2020, and December 31, 2019. UL and VUL products with secondary guarantees represented 29 % of total life insurance sales for the three months ended March 31, 2020 and 2019. |
Liability For Unpaid Claims
Liability For Unpaid Claims | 3 Months Ended |
Mar. 31, 2020 | |
Liability For Unpaid Claims [Abstract] | |
Liability For Unpaid Claims | 9. Liability for Unpaid Claims The liability for unpaid claims consists primarily of long-term disability claims and is reported in future contract benefits on our Consolidated Balance Sheets. Changes in the liability for unpaid claims (in millions) were as follows: For the Three Months Ended March 31, 2020 2019 Balance as of beginning-of-year $ 5,552 $ 5,335 Reinsurance recoverable 152 143 Net balance as of beginning-of-year 5,400 5,192 Incurred related to: Current year 885 803 Prior years: Interest 43 41 All other incurred (1) ( 65 ) ( 85 ) Total incurred 863 759 Paid related to: Current year ( 240 ) ( 215 ) Prior years ( 518 ) ( 482 ) Total paid ( 758 ) ( 697 ) Net balance as of end-of-period 5,505 5,254 Reinsurance recoverable 150 143 Balance as of end-of-period $ 5,655 $ 5,397 (1) All other incurred is primarily impacted by the level of claim resolutions in the period compared to that which is expected by the reserve assumption. A negative number implies a favorable result where claim resolutions were more favorable than assumed. Our claim resolution rate assumption used in determining reserves is our expectation of the resolution rate we will experience over the long-term life of the block of claims. It will vary from actual experience in any one period, both favorably and unfavorably. The interest rate assumption used for discounting long-term claim reserves is an important part of the reserving process due to the long benefit period for these claims. Interest accrued on prior years’ reserves has been calculated on the opening reserve balance less one-half of the prior years’ incurred claim payments at our average reserve discount rate. Long-term disability benefits may extend for many years, and claim development schedules do not reflect these longer benefit periods. As a result, we use longer term retrospective runoff studies, experience studies and prospective studies to develop our liability estimates. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2020 | |
Debt [Abstract] | |
Debt | 10. Debt Changes in debt (in millions) were as follows: For the Three Months Ended March 31, 2020 Balance as of beginning-of-year $ 6,367 LIBOR + 150 bps term loan issued, due 2022 500 Repayment of 6.25 % senior notes, due 2020 ( 300 ) Unamortized adjustments from discontinued hedges 263 Fair value hedge on interest rate swap agreements ( 82 ) Balance as of end-of-period $ 6,748 |
Contingencies and Commitments
Contingencies and Commitments | 3 Months Ended |
Mar. 31, 2020 | |
Contingencies and Commitments [Abstract] | |
Contingencies and Commitments | 11. Contingencies and Commitments Contingencies Regulatory and Litigation Matters Regulatory bodies, such as state insurance departments, the SEC, Financial Industry Regulatory Authority and other regulatory bodies regularly make inquiries and conduct examinations or investigations concerning our compliance with, among other things, insurance laws, securities laws, laws governing the activities of broker-dealers, registered investment advisers 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 March 31, 2020. 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 March 31, 2020 , we estimate the aggregate range of reasonably possible losses, including amounts in excess of amounts accrued for these matters as of such date, to be up to approximately $ 90 million. Any estimate is not an indication of expected loss, if any, or of the Company’s maximum possible loss exposure on such matters. 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 . Certain reinsurers have sought rate increases on certain yearly renewable term treaties. We are disputing the requested rate increases under these treaties. We have initiated and will initiate arbitration proceedings, as necessary, under these treaties in order to protect our contractual rights. Additionally, reinsurers may initiate arbitration proceedings against us. We believe it is unlikely the outcome of these disputes will have a material adverse effect on our financial condition. Cost of Insurance Litigation Glover v. Connecticut General Life Insurance Company and The Lincoln National Life Insurance Company , filed in the U.S. District Court for the District of Connecticut, No. 3:16-cv-00827, is a putative class action that was served on The Lincoln National Life Insurance Company (“LNL”) on June 8, 2016. Plaintiff is the owner of a universal life insurance policy who alleges that LNL charged more for non-guaranteed cost of insurance than permitted by the policy. Plaintiff seeks to represent all universal life and variable universal life policyholders who owned policies containing non-guaranteed cost of insurance provisions that are similar to those of Plaintiff’s policy and seeks damages on behalf of all such policyholders. On January 11, 2019, the court dismissed Plaintiff’s complaint in its entirety. In response, Plaintiff filed a motion for leave to amend the complaint, which we have opposed. Hanks v. Lincoln Life & Annuity Company of New York (“LLANY”) and Voya Retirement Insurance and Annuity Company (“Voya”) , filed in the U.S. District Court for the Southern District of New York, No. 1:16-cv-6399, is a putative class action that was served on LLANY on August 12, 2016. Plaintiff owns a universal life policy originally issued by Aetna (now Voya) and alleges that (i) Voya breached the terms of the policy when it increased non-guaranteed cost of insurance rates on Plaintiff’s policy; and (ii) LLANY, as reinsurer and administrator of Plaintiff’s policy, engaged in wrongful conduct related to the cost of insurance increase and was unjustly enriched as a result. Plaintiff seeks to represent all owners of Aetna life insurance policies that were subject to non-guaranteed cost of insurance rate increases in 2016 and seeks damages on their behalf. On March 13, 2019, the court issued an order granting plaintiff’s motion for class certification for the breach of contract claim and denying such motion with respect to the unjust enrichment claim against LLANY, and, on September 12, 2019, the court issued an order approving the parties’ joint stipulation of dismissal with respect to the unjust enrichment claim and dismissed LLANY as a defendant in the case. In light of LLANY’s role as reinsurer and administrator under the 1998 coinsurance agreement with Aetna (now Voya), and of the parties’ rights and obligations thereunder, LLANY continues to be actively engaged in the vigorous defense of this action. EFG Bank AG, Cayman Branch, et al. v. The Lincoln National Life Insurance Company , pending in the U.S. District Court for the Eastern District of Pennsylvania, No. 2:17-cv-02592, is a civil action filed on February 1, 2017. Plaintiffs own Legend Series universal life insurance policies originally issued by Jefferson-Pilot (now LNL). Plaintiffs allege that LNL breached the terms of policyholders’ contracts when it increased non-guaranteed cost of insurance rates beginning in 2016. We are vigorously defending this matter. In re: Lincoln National COI Litigation , pending in the U.S. District Court for the Eastern District of Pennsylvania, Master File No. 2:16-cv-06605-GJP, is a consolidated litigation matter related to multiple putative class action filings that were consolidated by an order dated March 20, 2017. In addition to consolidating a number of existing matters, the order also covers any future cases filed in the same district related to the same subject matter. Plaintiffs own universal life insurance policies originally issued by Jefferson-Pilot (now LNL). Plaintiffs allege that LNL and LNC breached the terms of policyholders’ contracts by increasing non-guaranteed cost of insurance rates beginning in 2016. Plaintiffs seek to represent classes of policyowners and seek damages on their behalf. We are vigorously defending this matter. In re: Lincoln National 2017 COI Rate Litigation , Master File No. 2:17-cv-04150 is a consolidated litigation matter related to multiple putative class action filings that were consolidated by an order of the court in March 2018. Plaintiffs own universal life insurance policies originally issued by former Jefferson-Pilot (now LNL). Plaintiffs allege that LNL and LNC breached the terms of policyholders’ contracts by increasing non-guaranteed cost of insurance rates beginning in 2017. Plaintiffs seek to represent classes of policyholders and seek damages on their behalf. We are vigorously defending this matter. Iwanski v. First Penn-Pacific Life Insurance Company (“FPP”), No. 2:18-cv-01573 filed in the U.S. District Court for the District Court, Eastern District of Pennsylvania is a putative class action that was filed on April 13, 2018. Plaintiff alleges that defendant FPP breached the terms of his life insurance policy by deducting non-guaranteed cost of insurance charges in excess of what is permitted by the policies. Plaintiff seeks to represent all owners of universal life insurance policies issued by FPP containing non-guaranteed cost of insurance provisions that are similar to those of Plaintiff’s policy and seeks damages on their behalf. Breach of contract is the only cause of action asserted. We are vigorously defending this matter. TVPX ARS INC., as Securities Intermediary for Consolidated Wealth Management, LTD. v. The Lincoln National Life Insurance Company , filed in the U.S. District Court for the Eastern District of Pennsylvania, No. 2:18-cv-02989, is a putative class action that was filed on July 17, 2018. Plaintiff alleges that LNL charged more for non-guaranteed cost of insurance than permitted by the policy. Plaintiff seeks to represent all universal life and variable universal life policyholders who own policies issued by LNL or its predecessors containing non-guaranteed cost of insurance provisions that are similar to those of Plaintiff’s policy and seeks damages on behalf of all such policyholders. We are vigorously defending this matter. LSH Co. and Wells Fargo Bank, National Association, as securities intermediary for LSH Co. v. Lincoln National Corporation and The Lincoln National Life Insurance Company , pending in the U.S. District Court for the Eastern District of Pennsylvania, No. 2:18-cv-05529, is a civil action filed on December 21, 2018. Plaintiffs own universal life insurance policies originally issued by Jefferson-Pilot (now LNL). Plaintiffs allege that LNL breached the terms of policyholders’ contracts when it increased non-guaranteed cost of insurance rates in 2016 and 2017. We are vigorously defending this matter. Vida Longevity Fund, LP v. Lincoln Life & Annuity Company of New York , pending in the U.S. District Court for the Southern District of New York, No. 1:19-cv-06004, is a putative class action that was filed on June 27, 2019. Plaintiff alleges that LLANY charged more for non-guaranteed cost of insurance than was permitted by the policies. Plaintiff seeks to represent all current and former owners of universal life (including variable universal life) policies who own or owned policies issued by LLANY and its predecessors in interest that were in force at any time on or after June 27, 2013, and which contain non-guaranteed cost of insurance provisions that are similar to those of Plaintiff’s policies. Plaintiff also seeks to represent a sub-class of such policyholders who own or owned “life insurance policies issued in the State of New York.” Plaintiff seeks damages on behalf of the policyholder class and sub-class. We are vigorously defending this matter. |
Shares and Stockholders' Equity
Shares and Stockholders' Equity | 3 Months Ended |
Mar. 31, 2020 | |
Shares and Stockholders' Equity [Abstract] | |
Shares and Stockholders' Equity | 12. Shares and Stockholders’ Equity Common Shares The changes in our common stock (number of shares) were as follows: For the Three Months Ended March 31, 2020 2019 Common Stock Balance as of beginning-of-year 196,668,532 205,862,760 Stock issued for exercise of warrants - 203,530 Stock compensation/issued for benefit plans 349,636 809,670 Retirement/cancellation of shares ( 3,809,924 ) ( 3,888,731 ) Balance as of end-of-period 193,208,244 202,987,229 Common Stock as of End-of-Period Basic basis 193,208,244 202,987,229 Diluted basis 195,027,909 204,200,031 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 Months Ended March 31, 2020 2019 Weighted-average shares, as used in basic calculation 195,076,797 204,290,759 Shares to cover exercise of outstanding warrants - 173,837 Shares to cover non-vested stock 853,597 1,049,556 Average stock options outstanding during the period 996,248 1,519,184 Assumed acquisition of shares with assumed proceeds from exercising outstanding warrants - ( 29,176 ) Assumed acquisition of shares with assumed proceeds and benefits from exercising stock options (at average market price for the period) ( 703,600 ) ( 1,041,630 ) Shares repurchasable from measured but unrecognized stock option expense - ( 867 ) Average deferred compensation shares 1,041,800 - Weighted-average shares, as used in diluted calculation 197,264,842 205,961,663 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 months ended March 31, 2020, 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 this period, 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 $ 23 million for the three months ended March 31, 2020. AOCI The following summarizes the components and changes in AOCI (in millions): For the Three Months Ended March 31, 2020 2019 Unrealized Gain (Loss) on AFS Securities Balance as of beginning-of-year $ 5,983 $ 557 Cumulative effect from adoption of new accounting standard 45 - Unrealized holding gains (losses) arising during the period ( 4,498 ) 3,556 Change in foreign currency exchange rate adjustment ( 150 ) 14 Change in DAC, VOBA, DSI, future contract benefits and other contract holder funds 1,264 ( 928 ) Income tax benefit (expense) 720 ( 563 ) Less: Reclassification adjustment for gains (losses) included in net income (loss) ( 2 ) ( 15 ) Associated amortization of DAC, VOBA, DSI and DFEL 32 ( 1 ) Income tax benefit (expense) ( 6 ) 3 Balance as of end-of-period $ 3,340 $ 2,649 Unrealized OTTI on AFS Securities Balance as of beginning-of-year $ 45 $ 33 (Increases) attributable to: Cumulative effect from adoption of new accounting standard ( 45 ) - Gross OTTI recognized in OCI during the period - ( 16 ) Change in DAC, VOBA, DSI and DFEL - 1 Income tax benefit (expense) - 4 Decreases attributable to: Changes in fair value, sales, maturities or other settlements of AFS securities - 6 Change in DAC, VOBA, DSI and DFEL - ( 2 ) Income tax benefit (expense) - ( 1 ) Balance as of end-of-period $ - $ 25 Unrealized Gain (Loss) on Derivative Instruments Balance as of beginning-of-year $ ( 11 ) $ 139 Unrealized holding gains (losses) arising during the period ( 71 ) ( 36 ) Change in foreign currency exchange rate adjustment 153 ( 14 ) Change in DAC, VOBA, DSI and DFEL ( 53 ) 6 Income tax benefit (expense) ( 8 ) 10 Less: Reclassification adjustment for gains (losses) included in net income (loss) 9 8 Associated amortization of DAC, VOBA, DSI and DFEL ( 6 ) ( 1 ) Income tax benefit (expense) ( 1 ) ( 1 ) Balance as of end-of-period $ 8 $ 99 Foreign Currency Translation Adjustment Balance as of beginning-of-year $ ( 17 ) $ ( 23 ) Foreign currency translation adjustment arising during the period ( 10 ) 3 Balance as of end-of-period $ ( 27 ) $ ( 20 ) Funded Status of Employee Benefit Plans Balance as of beginning-of-year $ ( 327 ) $ ( 299 ) Adjustment arising during the period 10 ( 1 ) Balance as of end-of-period $ ( 317 ) $ ( 300 ) 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 Three Months Ended March 31, 2020 2019 Unrealized Gain (Loss) on AFS Securities Gross reclassification $ ( 2 ) $ ( 15 ) Total realized gain (loss) Associated amortization of DAC, VOBA, DSI and DFEL 32 ( 1 ) Total realized gain (loss) Reclassification before income Income (loss) from continuing tax benefit (expense) 30 ( 16 ) operations before taxes Income tax benefit (expense) ( 6 ) 3 Federal income tax expense (benefit) Reclassification, net of income tax $ 24 $ ( 13 ) Net income (loss) Unrealized OTTI on AFS Securities Gross reclassification $ - $ - 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) - - operations before taxes Income tax benefit (expense) - - Federal income tax expense (benefit) Reclassification, net of income tax $ - $ - Net income (loss) Unrealized Gain (Loss) on Derivative Instruments Gross reclassifications: Interest rate contracts $ - $ 1 Net investment income Interest rate contracts ( 3 ) ( 1 ) Interest and debt expense Foreign currency contracts 11 7 Net investment income Foreign currency contracts 1 1 Total realized gain (loss) Total gross reclassifications 9 8 Associated amortization of DAC, VOBA, DSI and DFEL ( 6 ) ( 1 ) Commissions and other expenses Reclassifications before income Income (loss) from continuing tax benefit (expense) 3 7 operations before taxes Income tax benefit (expense) ( 1 ) ( 1 ) Federal income tax expense (benefit) Reclassifications, net of income tax $ 2 $ 6 Net income (loss) |
Realized Gain (Loss)
Realized Gain (Loss) | 3 Months Ended |
Mar. 31, 2020 | |
Realized Gain (Loss) [Abstract] | |
Realized Gain (Loss) | 13. Realized Gain (Loss) Realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss) includes realized gains and losses from the sale of investments, write-downs for impairments of investments and changes in the allowance for credit losses for financial assets, changes in fair value for mortgage loans on real estate accounted for under the fair value option, changes in fair value of equity securities, certain derivative and embedded derivative gains and losses, gains and losses on the sale of subsidiaries and businesses and net gains and losses on reinsurance embedded derivatives and trading securities. Realized gains and losses on the sale of investments are determined using the specific identification method. Realized gain (loss) is recognized in net income, net of associated amortization of DAC, VOBA, DSI and DFEL. Realized gain (loss) is also net of allocations of investment gains and losses to certain contract holders and certain funds withheld on reinsurance arrangements for which we have a contractual obligation. Details underlying realized gain (loss) (in millions) were as follows: For the Three Months Ended March 31, 2020 2019 Fixed maturity AFS securities: Gross gains $ 6 $ 12 Gross losses ( 8 ) ( 27 ) Credit loss expense, net ( 20 ) - Gross OTTI - ( 8 ) Gain (loss) on equity securities (1) ( 19 ) 6 Credit loss expense on mortgage loans on real estate ( 70 ) - Other gain (loss) on investments ( 1 ) ( 1 ) Associated amortization of DAC, VOBA, DSI and DFEL and changes in other contract holder funds 26 ( 2 ) Total realized gain (loss) related to certain financial assets ( 86 ) ( 20 ) Realized gain (loss) on the mark-to-market on certain instruments (2)(3) 47 ( 121 ) Indexed annuity and IUL contracts net derivatives results: (4) Gross gain (loss) ( 49 ) ( 35 ) Associated amortization of DAC, VOBA, DSI and DFEL 15 1 Variable annuity net derivatives results: (5) Gross gain (loss) 40 ( 215 ) Associated amortization of DAC, VOBA, DSI and DFEL 9 28 Total realized gain (loss) $ ( 24 ) $ ( 362 ) (1) Includes market adjustments on equity securities still held of $( 18 ) million and $ 6 million for the three months ended March 31, 2020 and 2019, respectively. (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 derivative results), reinsurance related embedded derivatives, mortgage loans on real estate accounted for under the fair value option and trading securities. See Note 7 for information regarding modified coinsurance. (3) Includes gains and losses from fair value changes on mortgage loans on real estate accounted for under the fair value option of $ 7 million for the three months ended March 31, 2020. (4) Represents the net difference between the change in fair value of the index 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 options we may purchase or sell in the future to hedge contract holder index allocations applicable to future reset periods for our indexed annuity products. (5) 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. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value of Financial Instruments [Abstract] | |
Fair Value of Financial Instruments | 14. Fair Value of Financial Instruments The carrying values and estimated fair values of our financial instruments (in millions) were as follows: As of March 31, 2020 As of December 31, 2019 Carrying Fair Carrying Fair Value Value Value Value Assets Fixed maturity AFS securities $ 102,606 $ 102,606 $ 105,200 $ 105,200 Trading securities 4,019 4,019 4,673 4,673 Equity securities 83 83 103 103 Mortgage loans on real estate 16,791 18,556 16,339 16,872 Derivative investments (1) 4,417 4,417 1,911 1,911 Other investments 4,755 4,755 2,983 2,983 Cash and invested cash 6,202 6,202 2,563 2,563 Reinsurance related embedded derivatives 137 137 - - Other assets: GLB direct embedded derivatives - - 450 450 GLB ceded embedded derivatives 728 728 60 60 Indexed annuity ceded embedded derivatives 799 799 927 927 Separate account assets 130,617 130,617 153,566 153,566 Liabilities Future contract benefits – indexed annuity and IUL contracts embedded derivatives ( 1,380 ) ( 1,380 ) ( 2,585 ) ( 2,585 ) Other contract holder funds: Remaining guaranteed interest and similar contracts ( 1,884 ) ( 1,884 ) ( 1,900 ) ( 1,900 ) Account values of certain investment contracts ( 39,744 ) ( 54,761 ) ( 38,639 ) ( 46,822 ) Short-term debt - - ( 300 ) ( 304 ) Long-term debt ( 6,748 ) ( 5,770 ) ( 6,067 ) ( 6,217 ) Reinsurance related embedded derivatives - - ( 327 ) ( 327 ) Other liabilities: Derivative liabilities (1) ( 1,212 ) ( 1,212 ) ( 349 ) ( 349 ) GLB direct embedded derivatives ( 4,596 ) ( 4,596 ) - - GLB ceded embedded derivatives - - ( 9 ) ( 9 ) (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. 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, including mortgage loans accounted for using the fair value option, 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. Other investments also includes Federal Home Loan Bank (“FHLB”) stock carried at cost and periodically evaluated for impairment based on ultimate recovery of par value. The inputs used to measure the fair value of our LPs, other privately held investments and FHLB stock are classified as Level 3 within the fair value hierarchy. The remaining assets in other investments include cash collateral receivables and securities that are not LPs or other privately held investments. The inputs used to measure the fair value of these assets are classified as Level 1 within the fair value hierarchy. Separate Account Assets Separate account assets are primarily carried at fair value. A portion of our separate account assets includes LPs, which are accounted for using the equity method of accounting. The carrying value is based on our proportional share of the net assets of the LPs and approximates fair value. The inputs used to measure the fair value of the separate account asset LPs are classified as Level 3 within the fair value hierarchy. Other Contract Holder Funds Other contract holder funds include remaining guaranteed interest and similar contracts and account values of certain investment contracts. The fair value for the remaining guaranteed interest and similar contracts is estimated using discounted cash flow calculations as of the balance sheet date. These calculations are based on interest rates currently offered on similar contracts with maturities that are consistent with those remaining for the contracts being valued. As of March 31, 2020, and December 31, 2019, the remaining guaranteed interest and similar contracts carrying value approximated fair value. The fair value of the account values of certain investment contracts is based on their approximate surrender value as of the balance sheet date. The inputs used to measure the fair value of our other contract holder funds are classified as Level 3 within the fair value hierarchy. Short-Term and Long-Term Debt The fair value of short-term and long-term debt is based on quoted market prices. The inputs used to measure the fair value of our short-term and long-term debt are classified as Level 2 within the fair value hierarchy. Fair Value Option Mortgage loans on real estate, net of ACL, as reported on our Consolidated Balance Sheets, includes commercial mortgage loans for which the fair value option was elected. The fair value option allows us to elect fair value as an alternative measurement for mortgage loans not otherwise reported at fair value. We have made these elections for certain mortgage loans associated with Modco arrangements to help mitigate the inconsistency in earnings that would otherwise result from the use of embedded derivatives included with these loans. Changes in fair value are reflected in realized gain (loss) on our Consolidated Statement of Comprehensive Income (Loss) for commercial mortgage loans. Changes in fair value due to instrument-specific credit risk are estimated using changes in credit spreads and quality ratings for the period reported. The fair value and aggregate contractual principal for mortgage loans where the fair value option was elected (in millions) was as follows: As of March 31, 2020 Commercial mortgage loans: (1) Fair value as of end-of-period $ 765 Aggregate contractual principal as of end-of-period 742 (1) As of March 31, 2020, no loans for which the fair value option has been elected were in non-accrual status and none were more than 90 days past due and still accruing. Financial Instruments Carried at Fair Value We did no t have any assets or liabilities measured at fair value on a nonrecurring basis as of March 31, 2020, or December 31, 2019, 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: As of March 31, 2020 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 $ - $ 81,694 $ 4,103 $ 85,797 U.S. government bonds 470 7 5 482 State and municipal bonds - 5,906 - 5,906 Foreign government bonds - 302 87 389 RMBS - 3,270 1 3,271 CMBS - 1,118 1 1,119 ABS - 4,890 196 5,086 Hybrid and redeemable preferred securities 68 416 72 556 Mortgage loans on real estate - 765 - 765 Trading securities 49 3,319 651 4,019 Equity securities 12 41 30 83 Derivative investments (1) - 2,447 3,213 5,660 Cash and invested cash - 6,202 - 6,202 Reinsurance related embedded derivatives - 137 - 137 Other assets: GLB ceded embedded derivatives - - 728 728 Indexed annuity ceded embedded derivatives - - 799 799 Separate account assets 539 130,068 - 130,607 Total assets $ 1,138 $ 240,582 $ 9,886 $ 251,606 Liabilities Future contract benefits – indexed annuity and IUL contracts embedded derivatives $ - $ - $ ( 1,380 ) $ ( 1,380 ) Other liabilities: Derivative liabilities (1) - ( 1,269 ) ( 1,186 ) ( 2,455 ) GLB direct embedded derivatives - - ( 4,596 ) ( 4,596 ) Total liabilities $ - $ ( 1,269 ) $ ( 7,162 ) $ ( 8,431 ) As of December 31, 2019 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 $ - $ 84,435 $ 4,281 $ 88,716 U.S. government bonds 424 6 5 435 State and municipal bonds - 5,884 - 5,884 Foreign government bonds - 303 90 393 RMBS - 3,230 11 3,241 CMBS - 1,082 1 1,083 ABS - 4,621 268 4,889 Hybrid and redeemable preferred securities 77 404 78 559 Trading securities 50 3,957 666 4,673 Equity securities 25 48 30 103 Derivative investments (1) - 1,212 1,735 2,947 Cash and invested cash - 2,563 - 2,563 Other assets: GLB direct embedded derivatives - - 450 450 GLB ceded embedded derivatives - - 60 60 Indexed annuity ceded embedded derivatives - - 927 927 Separate account assets 639 152,916 - 153,555 Total assets $ 1,215 $ 260,661 $ 8,602 $ 270,478 Liabilities Future contract benefits – indexed annuity and IUL contracts embedded derivatives $ - $ - $ ( 2,585 ) $ ( 2,585 ) Reinsurance related embedded derivatives - ( 327 ) - ( 327 ) Other liabilities: Derivative liabilities (1) - ( 518 ) ( 867 ) ( 1,385 ) GLB ceded embedded derivatives - - ( 9 ) ( 9 ) Total liabilities $ - $ ( 845 ) $ ( 3,461 ) $ ( 4,306 ) (1) Derivative investment assets and liabilities are presented within the fair value hierarchy on a gross basis by derivative type and not on a master netting basis by counterparty. The following summarizes changes to our financial instruments carried at fair value (in millions) and classified within Level 3 of the fair value hierarchy. This summary excludes any effect of amortization of DAC, VOBA, DSI and DFEL. The gains and losses below may include changes in fair value due in part to observable inputs that are a component of the valuation methodology. For the Three Months Ended March 31, 2020 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 $ 4,281 $ - $ ( 385 ) $ 165 $ 42 $ 4,103 U.S. government bonds 5 - - - - 5 Foreign government bonds 90 - ( 3 ) - - 87 RMBS 11 - - - ( 10 ) 1 CMBS 1 - - - - 1 ABS 268 - ( 4 ) 22 ( 90 ) 196 Hybrid and redeemable preferred securities 78 - ( 6 ) - - 72 Trading securities 666 ( 32 ) - ( 6 ) 23 651 Equity securities 30 - - - - 30 Derivative investments 868 997 279 ( 117 ) - 2,027 Other assets: (4) GLB direct embedded derivatives 450 ( 450 ) - - - - GLB ceded embedded derivatives 60 668 - - - 728 Indexed annuity ceded embedded derivatives 927 ( 115 ) - ( 13 ) - 799 Future contract benefits – indexed annuity and IUL contracts embedded derivatives (4) ( 2,585 ) 1,143 - 62 - ( 1,380 ) Other liabilities: (4) GLB direct embedded derivatives - ( 4,596 ) - - - ( 4,596 ) GLB ceded embedded derivatives ( 9 ) 9 - - - - Total, net $ 5,141 $ ( 2,376 ) $ ( 119 ) $ 113 $ ( 35 ) $ 2,724 For the Three Months Ended March 31, 2019 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 $ 3,269 $ ( 1 ) $ 70 $ 200 $ ( 17 ) $ 3,521 Foreign government bonds 109 - 1 - - 110 RMBS 7 - - - ( 7 ) - CMBS 2 - - - - 2 ABS 134 - - 149 ( 105 ) 178 Hybrid and redeemable preferred securities 75 - 3 - - 78 Trading securities 67 - - 206 ( 37 ) 236 Equity securities 25 - - - - 25 Derivative investments 534 ( 383 ) 46 70 - 267 Other assets: (4) GLB direct embedded derivatives 123 316 - - - 439 GLB ceded embedded derivatives 72 ( 22 ) - - - 50 Indexed annuity ceded embedded derivatives 902 77 - ( 107 ) - 872 Future contract benefits – indexed annuity and IUL contracts embedded derivatives (4) ( 1,305 ) ( 316 ) - ( 109 ) - ( 1,730 ) Other liabilities – GLB ceded embedded derivatives (4) - ( 8 ) - - - ( 8 ) Total, net $ 4,014 $ ( 337 ) $ 120 $ 409 $ ( 166 ) $ 4,040 (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 fixed maturity AFS and trading securities are reported at amortized cost as of the beginning-of-year. For fixed maturity AFS and trading securities, the difference between beginning-of-year amortized cost and beginning-of-year fair value was included in OCI and earnings, respectively, in 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 credit loss expense are included in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). (4) Gains (losses) from the changes in fair value 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 March 31, 2020 Issuances Sales Maturities Settlements Calls Total Investments: Fixed maturity AFS securities: Corporate bonds $ 336 $ ( 73 ) $ 2 $ ( 51 ) $ ( 49 ) $ 165 ABS 37 - - ( 15 ) - 22 Trading securities 37 ( 25 ) - ( 18 ) - ( 6 ) Derivative investments 118 ( 123 ) ( 112 ) - - ( 117 ) Other assets – indexed annuity ceded embedded derivatives 9 - - ( 22 ) - ( 13 ) Future contract benefits – indexed annuity and IUL contracts embedded derivatives 11 - - 51 - 62 Total, net $ 548 $ ( 221 ) $ ( 110 ) $ ( 55 ) $ ( 49 ) $ 113 For the Three Months Ended March 31, 2019 Issuances Sales Maturities Settlements Calls Total Investments: Fixed maturity AFS securities: Corporate bonds $ 267 $ ( 2 ) $ ( 7 ) $ ( 51 ) $ ( 7 ) $ 200 ABS 149 - - - - 149 Trading securities 207 - - ( 1 ) - 206 Derivative investments 131 ( 15 ) ( 46 ) - - 70 Other assets – indexed annuity ceded embedded derivatives 19 - - ( 126 ) - ( 107 ) Future contract benefits – indexed annuity and IUL contracts embedded derivatives ( 148 ) - - 39 - ( 109 ) Total, net $ 625 $ ( 17 ) $ ( 53 ) $ ( 139 ) $ ( 7 ) $ 409 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 Months Ended March 31, 2020 2019 GLB $ ( 4,867 ) $ 481 Derivative investments 895 ( 287 ) Embedded derivatives: Indexed annuity and IUL contracts ( 61 ) ( 32 ) Total, net (1) $ ( 4,033 ) $ 162 (1) Included in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). The following summarizes changes in unrealized gains (losses) included in OCI, net of tax, 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 Months Ended March 31, 2020 Fixed maturity AFS securities: Corporate bonds $ ( 325 ) Foreign government bonds ( 2 ) ABS ( 3 ) Hybrid and redeemable preferred securities ( 5 ) Total, net $ ( 335 ) 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 March 31, 2020 March 31, 2019 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 $ 119 $ ( 77 ) $ 42 $ 83 $ ( 100 ) $ ( 17 ) RMBS - ( 10 ) ( 10 ) - ( 7 ) ( 7 ) ABS 5 ( 95 ) ( 90 ) - ( 105 ) ( 105 ) Trading securities 23 - 23 - ( 37 ) ( 37 ) Total, net $ 147 $ ( 182 ) $ ( 35 ) $ 83 $ ( 249 ) $ ( 166 ) 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 three months ended March 31, 2020 and 2019, transfers in and out of Level 3 were attributable primarily to the securities’ observable market information no longer being available or becoming available. The following summarizes the fair value (in millions), valuation techniques and significant unobservable inputs of the Level 3 fair value measurements as of March 31, 2020: Weighted Average Fair Valuation Significant Assumption or Input Value Technique Unobservable Inputs Input Ranges Range (1) Assets Investments: Fixed maturity AFS and trading securities: Corporate bonds $ 2,690 Discounted cash flow Liquidity/duration adjustment (2) 0.7 % - 18.8 % 2.9 % Foreign government bonds 47 Discounted cash flow Liquidity/duration adjustment (2) 5.3 % - 8.0 % 6.8 % ABS 20 Discounted cash flow Liquidity/duration adjustment (2) 6.0 % - 6.0 % 6.0 % Hybrid and redeemable preferred securities 4 Discounted cash flow Liquidity/duration adjustment (2) 3.0 % - 3.0 % 3.0 % Equity securities 20 Discounted cash flow Liquidity/duration adjustment (2) 4.5 % - 7.3 % 6.7 % Other assets – GLB ceded embedded derivatives 728 Discounted cash flow Long-term lapse rate (3) 1 % - 30 % (10) Utilization of guaranteed withdrawals (4) 85 % - 100 % 94 % Claims utilization factor (5) 60 % - 100 % (10) Premiums utilization factor (5) 80 % - 115 % (10) NPR (6) 0.03 % - 0.35 % 0.27 % Mortality rate (7) (9) (10) Volatility (8) 1 % - 28 % 13.72 % Indexed annuity ceded embedded derivatives 799 Discounted cash flow Lapse rate (3) 1 % - 9 % (10) Mortality rate (7) (9) (10) Liabilities Future contract benefits – indexed annuity and IUL contracts embedded derivatives $ ( 1,380 ) Discounted cash flow Lapse rate (3) 1 % - 9 % (10) Mortality rate (7) (9) (10) Other liabilities – GLB direct embedded derivatives ( 4,596 ) Discounted cash flow Long-term lapse rate (3) 1 % - 30 % (10) Utilization of guaranteed withdrawals (4) 85 % - 100 % 94 % Claims utilization factor (5) 60 % - 100 % (10) Premiums utilization factor (5) 80 % - 115 % (10) NPR (6) 0.03 % - 0.35 % 0.27 % Mortality rate (7) (9) (10) Volatility (8) 1 % - 28 % 13.72 % (1) Unobservable inputs were weighted by the relative fair value of the instruments, unless otherwise noted. (2) 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. (3) 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. (4) The utilization of guaranteed withdrawals input represents the estimated percentage of contract holders that utilize the guaranteed withdrawal feature. (5) 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. (6) The NPR input represents the estimated additional credit spread that market participants would apply to the market observable discount rate when pricing a contract. The NPR input was weighted by the absolute value of the sensitivity of the reserve to the NPR assumption. (7) 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. (8) 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. Volatility assumptions vary by fund due to the benchmarking of different indices. The volatility input was weighted by the relative account value assigned to each index. (9) The mortality rate is based on a combination of company and industry experience, adjusted for improvement factors. (10) A weighted average input range is not a meaningful measurement for lapse rate, utilization factors or mortality rate. 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 would have resulted 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 have resulted in a decrease in the fair value measurement. Indexed annuity and IUL contracts embedded derivatives – For direct embedded derivatives, an increase in the lapse rate or mortality rate inputs would have resulted in a decrease in the fair value measurement. GLB embedded derivatives – Assuming our GLB direct embedded derivatives are in a liability position: an increase in our lapse rate, NPR or mortality rate inputs would have resulted in a decrease in the fair value measurement; and an increase in the utilization of guaranteed withdrawal or volatility inputs would have resulted in an increase in the fair value measurement. For each category discussed above, the unobservable inputs are not inter-related; therefore, a directional change in one input would not have affected the other inputs. As part of our ongoing valuation process, we assess the reasonableness of our valuation techniques or models and make adjustments as necessary. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2020 | |
Segment Information [Abstract] | |
Segment Information | 15. 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. A discussion of these segments and Other Operations is found in Note 21 of our 2019 Form 10-K. 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 financial assets; Changes in the fair value of equity securities; Changes in the fair value of derivatives, embedded derivatives within certain reinsurance arrangements and trading securities (“gain (loss) on the mark-to-market on certain instruments”); 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 options we may purchase or sell in the future to hedge contract holder index allocations applicable to future reset periods for our indexed annuity products accounted for at fair value (“indexed annuity forward-starting option”); Changes in reserves resulting from benefit ratio unlocking on our GDB and GLB riders (“benefit ratio unlocking”); 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; Acquisition and integration costs related to mergers and acquisitions; and Income (loss) from the initial adoption of new accounting standards, regulations, and policy changes including the net impact from the Tax Cuts and Jobs Act. 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. The tables below reconcile our segment measures of performance to the GAAP measures presented in our Consolidated Statements of Comprehensive Income (Loss) (in millions): For the Three Months Ended March 31, 2020 2019 Revenues Operating revenues: Annuities $ 1,129 $ 1,174 Retirement Plan Services 297 293 Life Insurance 1,821 1,700 Group Protection 1,224 1,138 Other Operations 38 57 Excluded realized gain (loss), pre-tax ( 75 ) ( 400 ) Amortization of DFEL associated with benefit ratio unlocking, pre-tax ( 9 ) 3 Total revenues $ 4,425 $ 3,965 For the Three Months Ended March 31, 2020 2019 Net Income (Loss) Income (loss) from operations: Annuities $ 261 $ 250 Retirement Plan Services 40 39 Life Insurance 171 157 Group Protection 40 55 Other Operations ( 47 ) ( 60 ) Excluded realized gain (loss), after-tax ( 60 ) ( 316 ) Benefit ratio unlocking, after-tax ( 349 ) 142 Acquisition and integration costs related to mergers and acquisitions, after-tax ( 4 ) ( 15 ) Net income (loss) $ 52 $ 252 |
Nature Of Operations and Basi_2
Nature Of Operations and Basis Of Presentation (Policy) | 3 Months Ended |
Mar. 31, 2020 | |
Nature Of Operations and Basis Of Presentation | |
Nature Of Operations | Nature of Operations Lincoln National Corporation and its 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 15 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, retirement income and group protection products and solutions. These products primarily 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 | 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. 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, 2019 (“2019 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 2019 Form 10-K. 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 three months ended March 31, 2020, are not necessarily indicative of the results that may be expected for the full year ending December 31, 2020, especially when considering the risks and uncertainties associated with the coronavirus, or COVID-19, pandemic and the future impacts of the pandemic on our business, results of operations and financial condition . All material inter-company accounts and transactions have been eliminated in consolidation |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Variable Interest Entities [Abstract] | |
Consolidated Variable Interest Entity Asset and Liability information | As of March 31, 2020 As of December 31, 2019 Number Number of Notional Carrying of Notional Carrying Instruments Amounts Value Instruments Amounts Value Assets Total return swap 1 $ 596 $ - 1 $ 613 $ - |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Reconciliation Of Available-For-Sale Securities From Cost Basis To Fair Value | As of March 31, 2020 Amortized Gross Unrealized Fair Cost Gains Losses ACL Value Fixed maturity AFS securities: Corporate bonds $ 80,785 $ 7,031 $ 1,999 $ 20 $ 85,797 U.S. government bonds 380 102 - - 482 State and municipal bonds 4,797 1,123 14 - 5,906 Foreign government bonds 329 63 3 - 389 RMBS 3,014 277 20 - 3,271 CMBS 1,089 39 9 - 1,119 ABS 5,259 59 232 - 5,086 Hybrid and redeemable preferred securities 564 51 59 - 556 Total fixed maturity AFS securities $ 96,217 $ 8,745 $ 2,336 $ 20 $ 102,606 The amortized cost, gross unrealized gains, losses, OTTI and fair value of fixed maturity AFS securities (in millions) were as follows: As of December 31, 2019 Amortized Gross Unrealized Fair Cost Gains Losses OTTI (1) Value Fixed maturity AFS securities: Corporate bonds $ 79,417 $ 9,479 $ 184 $ ( 4 ) $ 88,716 U.S. government bonds 384 51 - - 435 State and municipal bonds 4,778 1,113 7 - 5,884 Foreign government bonds 329 64 - - 393 RMBS 3,042 190 10 ( 19 ) 3,241 CMBS 1,038 45 1 ( 1 ) 1,083 ABS 4,810 62 18 ( 35 ) 4,889 Hybrid and redeemable preferred securities 497 82 20 - 559 Total fixed maturity AFS securities $ 94,295 $ 11,086 $ 240 $ ( 59 ) $ 105,200 (1) Prior to the adoption of ASU 2016-13, we recognized the OTTI attributed to noncredit factors as a separate component in other comprehensive income (loss) (“OCI”) referred to as unrealized OTTI on fixed maturity AFS securities. This includes unrealized (gains) and losses on credit-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 $ 3,008 $ 2,980 Due after one year through five years 14,806 14,836 Due after five years through ten years 17,319 17,804 Due after ten years 51,722 57,510 Subtotal 86,855 93,130 Structured securities (RMBS, CMBS, ABS) 9,362 9,476 Total fixed maturity AFS securities $ 96,217 $ 102,606 |
Fair Value And Gross Unrealized Losses In A Continuous Unrealized Loss Position | As of March 31, 2020 Less Than or Equal Greater Than to Twelve Months Twelve Months Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses (1) Fixed maturity AFS securities: Corporate bonds $ 21,648 $ 1,745 $ 828 $ 254 $ 22,476 $ 1,999 State and municipal bonds 364 14 - - 364 14 Foreign government bonds 27 3 - - 27 3 RMBS 352 19 5 1 357 20 CMBS 250 9 2 - 252 9 ABS 4,160 196 255 36 4,415 232 Hybrid and redeemable preferred securities 178 22 78 37 256 59 Total fixed maturity AFS securities $ 26,979 $ 2,008 $ 1,168 $ 328 $ 28,147 $ 2,336 Total number of fixed maturity AFS securities in an unrealized loss position 2,724 (1) We recognized $ 22 million of gross unrealized losses in OCI for fixed maturity AFS securities for which an allowance for credit losses has been recorded. The fair value and gross unrealized losses, including the portion of OTTI recognized in OCI, of fixed maturity AFS securities (dollars in millions), aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, were as follows: As of December 31, 2019 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 AFS securities: Corporate bonds $ 2,935 $ 46 $ 1,406 $ 141 $ 4,341 $ 187 State and municipal bonds 333 7 18 - 351 7 RMBS 536 10 15 - 551 10 CMBS 48 1 4 - 52 1 ABS 1,792 8 303 10 2,095 18 Hybrid and redeemable preferred securities 29 1 102 19 131 20 Total fixed maturity AFS securities $ 5,673 $ 73 $ 1,848 $ 170 $ 7,521 $ 243 Total number of fixed maturity AFS securities in an unrealized loss position 895 |
Schedule Of Available-For-Sale Securities Whose Value Is Below Amortized Cost | As of March 31, 2020 Gross Number Fair Unrealized of Value Losses Securities (1) Less than six months $ 1,528 $ 803 185 Twelve months or greater 50 60 23 Total $ 1,578 $ 863 208 (1) We may reflect a security in more than one aging category based on various purchase dates. The fair value, gross unrealized losses, the portion of OTTI recognized in OCI (in millions) and number of fixed maturity AFS securities where the fair value had declined and remained below amortized cost by greater than 20% were as follows: As of December 31, 2019 Number Fair Gross Unrealized of Value Losses OTTI Securities (1) Less than six months $ 15 $ 5 $ - 7 Six months or greater, but less than nine months 10 3 - 4 Twelve months or greater 132 76 - 31 Total $ 157 $ 84 $ - 42 (1) We may reflect a security in more than one aging category based on various purchase dates. |
Changes In Allowance For Credit Losses On AFS | Corporate Bonds RMBS ABS Other Total Balance as of beginning-of-year $ - $ - $ - $ - $ - Additions for securities for which credit losses were not previously recognized 20 - - - 20 Additions from purchases of PCD debt securities (1) - - - - - Balance as of end-of-period (2) $ 20 $ - $ - $ - $ 20 (1) Represents purchased credit-deteriorated (“PCD”) fixed maturity AFS securities. (2) Accrued interest receivable on fixed maturity AFS securities totaled $ 1.0 billion as of March 31, 2020, and was excluded from the estimate of credit losses. |
Schedule Of Changes In Amount Of Credit Losses Of OTTI Recognized In Net Income (Loss) | For the Three Months Ended March 31, 2019 Balance as of beginning-of-year $ 355 Increases attributable to: Credit losses on securities for which an OTTI was not previously recognized 6 Credit losses on securities for which an OTTI was previously recognized 2 Decreases attributable to: Securities sold, paid down or matured ( 4 ) Balance as of end-of-period $ 359 |
Composition Of Current And Past Due Mortgage Loans On Real Estate | As of March 31, 2020 As of December 31, 2019 Commercial Residential Total Commercial Residential Total Current $ 16,168 $ 707 $ 16,875 $ 15,620 $ 659 $ 16,279 30 to 59 days past due - 16 16 3 27 30 60 to 89 days past due - 4 4 - 10 10 90 or more days past due - 23 23 - 16 16 Allowance for credit losses ( 126 ) ( 35 ) ( 161 ) - ( 2 ) ( 2 ) Unamortized premium (discount) ( 16 ) 24 8 ( 17 ) 23 6 Mark-to-market gains (losses) (1) 26 - 26 - - - Total carrying value $ 16,052 $ 739 $ 16,791 $ 15,606 $ 733 $ 16,339 (1) Represents the mark-to-market on certain commercial mortgage loans on real estate for which we have elected the fair value option. See Note 14 for additional information. |
Schedule Of Average Carrying Value Of Impaired Mortgage Loans On Real Estate | For the Three Months Ended March 31, 2020 2019 Average carrying value for impaired mortgage loans on real estate $ 3 $ - Interest income recognized on impaired mortgage loans on real estate - - Interest income collected on impaired mortgage loans on real estate - - |
Amortized Cost Of Mortgage Loans On Real Estate On Nonaccrual Status | As of March 31, 2020 As of January 1, 2020 Nonaccrual Nonaccrual with no with no ACL Nonaccrual ACL Nonaccrual Commercial mortgage loans on real estate $ - $ - $ - $ - Residential mortgage loans on real estate - 24 - 17 Total $ - $ 24 $ - $ 17 |
Changes In Allowance For Credit Losses On Mortgage Loans On Real Estate | Commercial Residential Total Balance as of beginning-of-year, prior to adoption of ASU 2016-13 $ - $ 2 $ 2 Impact of adopting ASU 2016-13 62 26 88 Additions from provision for credit loss expense (1) 64 7 71 Additions from purchases of PCD mortgage loans on real estate - - - Balance as of end-of-period (2) $ 126 $ 35 $ 161 (1) Due to changes in economic assumptions driven by the impact of the COVID-19 pandemic, the provision for credit loss expense increased by $ 71 million for the three months ended March 31, 2020. (2) Accrued interest receivable on mortgage loans on real estate totaled $ 50 million as of March 31, 2020, and was excluded from the estimate of credit losses. |
Credit Loss Expense Incurred | For the Three Months Ended March 31, 2020 2019 Credit Loss Expense Recognized in Net Income (Loss) (1) Fixed maturity AFS securities: Corporate bonds $ ( 20 ) $ ( 6 ) RMBS - ( 1 ) ABS - ( 1 ) Gross credit loss expense recognized in net income (loss) ( 20 ) ( 8 ) Associated amortization of DAC, VOBA, DSI and DFEL - - Net credit loss expense recognized in net income (loss) $ ( 20 ) $ ( 8 ) (1) For the three months ended March 31, 2020, we recognized credit loss expense incurred as a result of impairments through net income (loss), pursuant to ASU 2016-13. For the three months ended March 31, 2019, prior to the adoption of ASU 2016-13, we recognized write-downs taken as a result of OTTI through net income (loss). |
Payables For Collateral On Investments | As of March 31, 2020 As of December 31, 2019 Carrying Fair Carrying Fair Value Value Value Value Collateral payable for derivative investments (1) $ 3,943 $ 3,943 $ 1,388 $ 1,388 Securities pledged under securities lending agreements (2) 161 156 114 110 Investments pledged for Federal Home Loan Bank of Indianapolis (“FHLBI”) (3) 4,330 6,970 3,580 5,480 Total payables for collateral on investments $ 8,434 $ 11,069 $ 5,082 $ 6,978 (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 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 Three Months Ended March 31, 2020 2019 Collateral payable for derivative investments $ 2,555 $ 58 Securities pledged under securities lending agreements 47 48 Securities pledged under repurchase agreements - 1 Investments pledged for FHLBI 750 450 Total increase (decrease) in payables for collateral on investments $ 3,352 $ 557 |
Schedule Of Securities Pledged By Contractual Maturity | As of March 31, 2020 Overnight and Continuous Up to 30 Days 30 - 90 Days Greater Than 90 Days Total Securities Lending Corporate bonds $ 160 $ - $ - $ - $ 160 Foreign government bonds 1 - - - 1 Total gross secured borrowings $ 161 $ - $ - $ - $ 161 As of December 31, 2019 Overnight and Continuous Up to 30 Days 30 - 90 Days Greater Than 90 Days Total Securities Lending Corporate bonds $ 114 $ - $ - $ - $ 114 Total gross secured borrowings $ 114 $ - $ - $ - $ 114 |
Commercial [Member] | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Credit Quality Indicators For Mortgage Loans | As of March 31, 2020 As of December 31, 2019 Debt- Debt- Service Service Amortized % of Coverage Amortized % of Coverage Loan-to-Value Ratio Cost Total Ratio Cost Total Ratio Less than 65% $ 14,723 91.2 % 2.40 $ 14,206 91.0 % 2.35 65% to 74% 1,428 8.8 % 1.85 1,399 9.0 % 1.87 75% to 100% 1 0.0 % 0.90 1 0.0 % 1.09 Total $ 16,152 100.0 % $ 15,606 100.0 % The amortized cost of commercial mortgage loans on real estate (in millions) by year of origination and credit quality indicator was as follows: As of March 31, 2020 Debt- Debt- Debt- Service Service Service Less Coverage 65% Coverage 75% Coverage than 65% Ratio to 74% Ratio to 100% Ratio Total Origination Year 2020 $ 654 3.57 $ 61 1.47 $ - - $ 715 2019 2,964 2.29 493 1.78 - - 3,457 2018 2,346 2.17 271 1.48 - - 2,617 2017 1,798 2.34 202 2.67 - - 2,000 2016 1,732 2.37 217 1.92 - - 1,949 2015 and prior 5,229 2.43 184 1.68 1 0.90 5,414 Total $ 14,723 $ 1,428 $ 1 $ 16,152 |
Residential [Member] | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Credit Quality Indicators For Mortgage Loans | As of March 31, 2020 As of December 31, 2019 Amortized % of Amortized % of Performance Indicator Cost Total Cost (1) Total Performing $ 750 96.9 % $ 718 97.7 % Nonperforming 24 3.1 % 17 2.3 % Total $ 774 100.0 % $ 735 100.0 % (1) A valuation allowance of $ 2 million was established on residential mortgage loans on real estate as of December 31, 2019. The amortized cost of residential mortgage loans on real estate (in millions) by year of origination and credit quality indicator as of March 31, 2020, was as follows: Performing Nonperforming Total Origination Year 2020 $ 73 $ - $ 73 2019 454 18 472 2018 223 6 229 2017 - - - 2016 - - - 2015 and prior - - - Total $ 750 $ 24 $ 774 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments [Abstract] | |
Outstanding Derivative Instruments With Off-Balance-Sheet Risks | As of March 31, 2020 As of December 31, 2019 Notional Fair Value Notional Fair Value Amounts Asset Liability Amounts Asset Liability Qualifying Hedges Cash flow hedges: Interest rate contracts (1) $ 2,397 $ 334 $ 853 $ 2,387 $ 108 $ 245 Foreign currency contracts (1) 2,912 606 13 2,874 191 51 Total cash flow hedges 5,309 940 866 5,261 299 296 Fair value hedges: Interest rate contracts (1) 1,170 - 337 1,261 123 203 Non-Qualifying Hedges Interest rate contracts (1) 119,681 1,890 140 112,921 1,082 219 Foreign currency contracts (1) 166 11 - 262 1 3 Equity market contracts (1) 55,784 2,819 1,112 43,555 1,442 664 Credit contracts (1) 394 - - 55 - - Embedded derivatives: GLB direct (2) - - 4,596 - 450 - GLB ceded (2) - 728 - - 60 9 Reinsurance related (3) - 137 - - - 327 Indexed annuity and IUL contracts (2) (4) - 799 1,380 - 927 2,585 Total derivative instruments $ 182,504 $ 7,324 $ 8,431 $ 163,315 $ 4,384 $ 4,306 (1) Reported in derivative investments and other liabilities on our Consolidated Balance Sheets. (2) Reported in other assets and other liabilities on our Consolidated Balance Sheets. (3) Reported in reinsurance related embedded derivatives on our Consolidated Balance Sheets. (4) Reported in future contract benefits on our Consolidated Balance Sheets. |
Maturity Of The Notional Amounts Of Derivative Financial Instruments | Remaining Life as of March 31, 2020 Less Than 1 - 5 6 - 10 11 - 30 Over 30 1 Year Years Years Years Years Total Interest rate contracts (1) $ 15,089 $ 48,226 $ 24,802 $ 33,300 $ 1,831 $ 123,248 Foreign currency contracts (2) 146 370 1,013 1,507 42 3,078 Equity market contracts 30,822 14,314 4,343 11 6,294 55,784 Credit contracts - - 394 - - 394 Total derivative instruments with notional amounts $ 46,057 $ 62,910 $ 30,552 $ 34,818 $ 8,167 $ 182,504 (1) As of March 31, 2020, the latest maturity date for which we were hedging our exposure to the variability in future cash flows for these instruments was April 20, 2067 . (2) As of March 31, 2020, the latest maturity date for which we were hedging our exposure to the variability in future cash flows for these instruments was June 17, 2050 . |
Cumulative Basis Adjustments For Fair Value Hedges | Cumulative Fair Value Hedging Adjustment Included Amortized Cost of the in the Amortized Cost of the Hedged Assets/(Liabilities) Hedged Asset/(Liabilities) As of As of As of As of March 31, December 31, March 31, December 31, 2020 2019 2020 2019 Line Item in the Consolidated Balance Sheets in which the Hedged Item is Included AFS fixed maturity securities, at fair value $ 890 $ 776 $ 328 $ 202 Long-term debt (1) ( 954 ) ( 1,035 ) ( 79 ) ( 160 ) (1) The balance includes $( 381 ) million and $( 118 ) million of unamortized adjustments from discontinued hedges as of March 31, 2020 and December 31, 2019, respectively. |
Change In Our Unrealized Gain On Derivative Instruments In Accumulated OCI | For the Three Months Ended March 31, 2020 2019 Unrealized Gain (Loss) on Derivative Instruments Balance as of beginning-of-year $ ( 11 ) $ 139 Other comprehensive income (loss): Cash flow hedges: Interest rate contracts ( 383 ) ( 47 ) Foreign currency contracts 312 11 Change in foreign currency exchange rate adjustment 153 ( 14 ) Change in DAC, VOBA, DSI and DFEL ( 53 ) 6 Income tax benefit (expense) ( 8 ) 10 Less: Reclassification adjustment for gains (losses) included in net income (loss): Cash flow hedges: Interest rate contracts (1) - 1 Interest rate contracts (2) ( 3 ) ( 1 ) Foreign currency contracts (1) 11 7 Foreign currency contracts (3) 1 1 Associated amortization of DAC, VOBA, DSI and DFEL ( 6 ) ( 1 ) Income tax benefit (expense) ( 1 ) ( 1 ) Balance as of end-of-period $ 8 $ 99 (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). |
Effects Of Qualifying And Non-Qualifying Hedges | Gain (Loss) Recognized in Income For the Three Months Ended March 31, 2020 Realized Net Interest Gain Investment and Debt (Loss) Income Expense Total Line Items in which the Effects of Fair Value or Cash Flow Hedges are Recorded $ ( 24 ) $ 1,375 $ 68 Qualifying Hedges Gain or (loss) on fair value hedging relationships: Interest rate contracts: Hedged items - 127 82 Derivatives designated as hedging instruments - ( 127 ) ( 82 ) Gain or (loss) on cash flow hedging relationships: Interest rate contracts: Amount of gain or (loss) reclassified from AOCI into income - - ( 3 ) Foreign currency contracts: Amount of gain or (loss) reclassified from AOCI into income 1 11 - Non-Qualifying Hedges Interest rate contracts 2,150 - - Equity market contracts 1,070 - - Credit contracts ( 4 ) - - Embedded derivatives: GLB ( 4,369 ) - - Reinsurance related 463 - - Indexed annuity and IUL contracts 1,028 - - Gain (Loss) Recognized in Income For the Three Months Ended March 31, 2019 Realized Net Interest Gain Investment and Debt (Loss) Income Expense Total Line Items in which the Effects of Fair Value or Cash Flow Hedges are Recorded $ ( 362 ) $ 1,251 $ 71 Qualifying Hedges Gain or (loss) on fair value hedging relationships: Interest rate contracts: Hedged items - 24 ( 34 ) Derivatives designated as hedging instruments - ( 24 ) 34 Gain or (loss) on cash flow hedging relationships: Interest rate contracts: Amount of gain or (loss) reclassified from AOCI into income - 1 ( 1 ) Foreign currency contracts: Amount of gain or (loss) reclassified from AOCI into income 1 7 - Non-Qualifying Hedges Interest rate contracts 357 - - Equity market contracts ( 458 ) - - Embedded derivatives: GLB 286 - - Reinsurance related ( 174 ) - - Indexed annuity and IUL contracts ( 239 ) - - |
Open Credit Default Swap Liabilities | As of March 31, 2020 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 6/20/2025 (3) (4) BBB+ 4 $ ( 2 ) $ 394 As of December 31, 2019 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 12/20/2024 (3) (4) BBB+ 1 $ 1 $ 55 (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. |
Collateral Support Agreements | As of As of March 31, December 31, 2020 2019 Maximum potential payout $ 394 $ 55 Less: Counterparty thresholds - - Maximum collateral potentially required to post $ 394 $ 55 |
Schedule Of Collateral Amounts With Rights To Reclaim Or Obligation To Return Cash | As of March 31, 2020 As of December 31, 2019 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- $ 521 $ ( 599 ) $ 441 $ ( 167 ) A+ 2,674 ( 493 ) 555 ( 339 ) A 35 - 36 - A- 712 ( 397 ) 355 ( 51 ) BBB+ - - - - $ 3,942 $ ( 1,489 ) $ 1,387 $ ( 557 ) |
Schedule Of Offsetting Assets And Liabilities | As of March 31, 2020 Embedded Derivative Derivative Instruments Instruments Total Financial Assets Gross amount of recognized assets $ 5,634 $ 1,664 $ 7,298 Gross amounts offset ( 1,217 ) - ( 1,217 ) Net amount of assets 4,417 1,664 6,081 Gross amounts not offset: Cash collateral ( 3,942 ) - ( 3,942 ) Non-cash collateral ( 151 ) - ( 151 ) Net amount $ 324 $ 1,664 $ 1,988 Financial Liabilities Gross amount of recognized liabilities $ 1,688 $ 5,976 $ 7,664 Gross amounts offset ( 25 ) - ( 25 ) Net amount of liabilities 1,663 5,976 7,639 Gross amounts not offset: Cash collateral ( 1,489 ) - ( 1,489 ) Non-cash collateral - - - Net amount $ 174 $ 5,976 $ 6,150 As of December 31, 2019 Embedded Derivative Derivative Instruments Instruments Total Financial Assets Gross amount of recognized assets $ 2,619 $ 1,437 $ 4,056 Gross amounts offset ( 708 ) - ( 708 ) Net amount of assets 1,911 1,437 3,348 Gross amounts not offset: Cash collateral ( 1,387 ) - ( 1,387 ) Non-cash collateral ( 242 ) - ( 242 ) Net amount $ 282 $ 1,437 $ 1,719 Financial Liabilities Gross amount of recognized liabilities $ 1,005 $ 2,921 $ 3,926 Gross amounts offset ( 138 ) - ( 138 ) Net amount of liabilities 867 2,921 3,788 Gross amounts not offset: Cash collateral ( 557 ) - ( 557 ) Non-cash collateral - - - Net amount $ 310 $ 2,921 $ 3,231 |
Guaranteed Benefit Features (Ta
Guaranteed Benefit Features (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Guaranteed Benefit Features [Abstract] | |
Information On Guaranteed Death Benefit Features | As of As of March 31, December 31, 2020 (1) 2019 (1) Return of Net Deposits Total account value $ 88,627 $ 101,601 Net amount at risk (2) 1,563 71 Average attained age of contract holders 65 years 65 years Minimum Return Total account value $ 76 $ 92 Net amount at risk (2) 17 13 Average attained age of contract holders 78 years 77 years Guaranteed minimum return 5 % 5 % Anniversary Contract Value Total account value $ 21,713 $ 25,763 Net amount at risk (2) 2,401 384 Average attained age of contract holders 72 years 71 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 Three Months Ended March 31, 2020 2019 Balance as of beginning-of-year $ 117 $ 161 Changes in reserves 106 ( 36 ) Benefits paid ( 8 ) ( 6 ) Balance as of end-of-period $ 215 $ 119 |
Account Balances Of Variable Annuity Contracts With Guarantees Invested In Separate Accounts | As of As of March 31, December 31, 2020 2019 Asset Type Domestic equity $ 52,454 $ 64,093 International equity 15,998 19,852 Fixed income 38,522 41,405 Total $ 106,974 $ 125,350 Percent of total variable annuity separate account values 98 % 98 % |
Liability For Unpaid Claims (Ta
Liability For Unpaid Claims (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Liability For Unpaid Claims [Abstract] | |
Changes In Liability For Unpaid Claims | For the Three Months Ended March 31, 2020 2019 Balance as of beginning-of-year $ 5,552 $ 5,335 Reinsurance recoverable 152 143 Net balance as of beginning-of-year 5,400 5,192 Incurred related to: Current year 885 803 Prior years: Interest 43 41 All other incurred (1) ( 65 ) ( 85 ) Total incurred 863 759 Paid related to: Current year ( 240 ) ( 215 ) Prior years ( 518 ) ( 482 ) Total paid ( 758 ) ( 697 ) Net balance as of end-of-period 5,505 5,254 Reinsurance recoverable 150 143 Balance as of end-of-period $ 5,655 $ 5,397 (1) All other incurred is primarily impacted by the level of claim resolutions in the period compared to that which is expected by the reserve assumption. A negative number implies a favorable result where claim resolutions were more favorable than assumed. Our claim resolution rate assumption used in determining reserves is our expectation of the resolution rate we will experience over the long-term life of the block of claims. It will vary from actual experience in any one period, both favorably and unfavorably. |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Debt [Abstract] | |
Schedule Of Changes In Debt | For the Three Months Ended March 31, 2020 Balance as of beginning-of-year $ 6,367 LIBOR + 150 bps term loan issued, due 2022 500 Repayment of 6.25 % senior notes, due 2020 ( 300 ) Unamortized adjustments from discontinued hedges 263 Fair value hedge on interest rate swap agreements ( 82 ) Balance as of end-of-period $ 6,748 |
Shares and Stockholders' Equi_2
Shares and Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Shares and Stockholders' Equity [Abstract] | |
Changes In Common stock (Number Of Shares) | For the Three Months Ended March 31, 2020 2019 Common Stock Balance as of beginning-of-year 196,668,532 205,862,760 Stock issued for exercise of warrants - 203,530 Stock compensation/issued for benefit plans 349,636 809,670 Retirement/cancellation of shares ( 3,809,924 ) ( 3,888,731 ) Balance as of end-of-period 193,208,244 202,987,229 Common Stock as of End-of-Period Basic basis 193,208,244 202,987,229 Diluted basis 195,027,909 204,200,031 |
Reconciliation Of The Denominator Calculations Of Basic And Diluted EPS | For the Three Months Ended March 31, 2020 2019 Weighted-average shares, as used in basic calculation 195,076,797 204,290,759 Shares to cover exercise of outstanding warrants - 173,837 Shares to cover non-vested stock 853,597 1,049,556 Average stock options outstanding during the period 996,248 1,519,184 Assumed acquisition of shares with assumed proceeds from exercising outstanding warrants - ( 29,176 ) Assumed acquisition of shares with assumed proceeds and benefits from exercising stock options (at average market price for the period) ( 703,600 ) ( 1,041,630 ) Shares repurchasable from measured but unrecognized stock option expense - ( 867 ) Average deferred compensation shares 1,041,800 - Weighted-average shares, as used in diluted calculation 197,264,842 205,961,663 |
Components And Changes In Accumulated OCI | For the Three Months Ended March 31, 2020 2019 Unrealized Gain (Loss) on AFS Securities Balance as of beginning-of-year $ 5,983 $ 557 Cumulative effect from adoption of new accounting standard 45 - Unrealized holding gains (losses) arising during the period ( 4,498 ) 3,556 Change in foreign currency exchange rate adjustment ( 150 ) 14 Change in DAC, VOBA, DSI, future contract benefits and other contract holder funds 1,264 ( 928 ) Income tax benefit (expense) 720 ( 563 ) Less: Reclassification adjustment for gains (losses) included in net income (loss) ( 2 ) ( 15 ) Associated amortization of DAC, VOBA, DSI and DFEL 32 ( 1 ) Income tax benefit (expense) ( 6 ) 3 Balance as of end-of-period $ 3,340 $ 2,649 Unrealized OTTI on AFS Securities Balance as of beginning-of-year $ 45 $ 33 (Increases) attributable to: Cumulative effect from adoption of new accounting standard ( 45 ) - Gross OTTI recognized in OCI during the period - ( 16 ) Change in DAC, VOBA, DSI and DFEL - 1 Income tax benefit (expense) - 4 Decreases attributable to: Changes in fair value, sales, maturities or other settlements of AFS securities - 6 Change in DAC, VOBA, DSI and DFEL - ( 2 ) Income tax benefit (expense) - ( 1 ) Balance as of end-of-period $ - $ 25 Unrealized Gain (Loss) on Derivative Instruments Balance as of beginning-of-year $ ( 11 ) $ 139 Unrealized holding gains (losses) arising during the period ( 71 ) ( 36 ) Change in foreign currency exchange rate adjustment 153 ( 14 ) Change in DAC, VOBA, DSI and DFEL ( 53 ) 6 Income tax benefit (expense) ( 8 ) 10 Less: Reclassification adjustment for gains (losses) included in net income (loss) 9 8 Associated amortization of DAC, VOBA, DSI and DFEL ( 6 ) ( 1 ) Income tax benefit (expense) ( 1 ) ( 1 ) Balance as of end-of-period $ 8 $ 99 Foreign Currency Translation Adjustment Balance as of beginning-of-year $ ( 17 ) $ ( 23 ) Foreign currency translation adjustment arising during the period ( 10 ) 3 Balance as of end-of-period $ ( 27 ) $ ( 20 ) Funded Status of Employee Benefit Plans Balance as of beginning-of-year $ ( 327 ) $ ( 299 ) Adjustment arising during the period 10 ( 1 ) Balance as of end-of-period $ ( 317 ) $ ( 300 ) |
Schedule of Reclassifications Out Of AOCI | For the Three Months Ended March 31, 2020 2019 Unrealized Gain (Loss) on AFS Securities Gross reclassification $ ( 2 ) $ ( 15 ) Total realized gain (loss) Associated amortization of DAC, VOBA, DSI and DFEL 32 ( 1 ) Total realized gain (loss) Reclassification before income Income (loss) from continuing tax benefit (expense) 30 ( 16 ) operations before taxes Income tax benefit (expense) ( 6 ) 3 Federal income tax expense (benefit) Reclassification, net of income tax $ 24 $ ( 13 ) Net income (loss) Unrealized OTTI on AFS Securities Gross reclassification $ - $ - 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) - - operations before taxes Income tax benefit (expense) - - Federal income tax expense (benefit) Reclassification, net of income tax $ - $ - Net income (loss) Unrealized Gain (Loss) on Derivative Instruments Gross reclassifications: Interest rate contracts $ - $ 1 Net investment income Interest rate contracts ( 3 ) ( 1 ) Interest and debt expense Foreign currency contracts 11 7 Net investment income Foreign currency contracts 1 1 Total realized gain (loss) Total gross reclassifications 9 8 Associated amortization of DAC, VOBA, DSI and DFEL ( 6 ) ( 1 ) Commissions and other expenses Reclassifications before income Income (loss) from continuing tax benefit (expense) 3 7 operations before taxes Income tax benefit (expense) ( 1 ) ( 1 ) Federal income tax expense (benefit) Reclassifications, net of income tax $ 2 $ 6 Net income (loss) |
Realized Gain (Loss) (Tables)
Realized Gain (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Realized Gain (Loss) [Abstract] | |
Schedule Of Realized Gain (Loss) | For the Three Months Ended March 31, 2020 2019 Fixed maturity AFS securities: Gross gains $ 6 $ 12 Gross losses ( 8 ) ( 27 ) Credit loss expense, net ( 20 ) - Gross OTTI - ( 8 ) Gain (loss) on equity securities (1) ( 19 ) 6 Credit loss expense on mortgage loans on real estate ( 70 ) - Other gain (loss) on investments ( 1 ) ( 1 ) Associated amortization of DAC, VOBA, DSI and DFEL and changes in other contract holder funds 26 ( 2 ) Total realized gain (loss) related to certain financial assets ( 86 ) ( 20 ) Realized gain (loss) on the mark-to-market on certain instruments (2)(3) 47 ( 121 ) Indexed annuity and IUL contracts net derivatives results: (4) Gross gain (loss) ( 49 ) ( 35 ) Associated amortization of DAC, VOBA, DSI and DFEL 15 1 Variable annuity net derivatives results: (5) Gross gain (loss) 40 ( 215 ) Associated amortization of DAC, VOBA, DSI and DFEL 9 28 Total realized gain (loss) $ ( 24 ) $ ( 362 ) (1) Includes market adjustments on equity securities still held of $( 18 ) million and $ 6 million for the three months ended March 31, 2020 and 2019, respectively. (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 derivative results), reinsurance related embedded derivatives, mortgage loans on real estate accounted for under the fair value option and trading securities. See Note 7 for information regarding modified coinsurance. (3) Includes gains and losses from fair value changes on mortgage loans on real estate accounted for under the fair value option of $ 7 million for the three months ended March 31, 2020. (4) Represents the net difference between the change in fair value of the index 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 options we may purchase or sell in the future to hedge contract holder index allocations applicable to future reset periods for our indexed annuity products. (5) 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. |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value of Financial Instruments [Abstract] | |
Carrying And Estimated Fair Values Of Financial Instruments | As of March 31, 2020 As of December 31, 2019 Carrying Fair Carrying Fair Value Value Value Value Assets Fixed maturity AFS securities $ 102,606 $ 102,606 $ 105,200 $ 105,200 Trading securities 4,019 4,019 4,673 4,673 Equity securities 83 83 103 103 Mortgage loans on real estate 16,791 18,556 16,339 16,872 Derivative investments (1) 4,417 4,417 1,911 1,911 Other investments 4,755 4,755 2,983 2,983 Cash and invested cash 6,202 6,202 2,563 2,563 Reinsurance related embedded derivatives 137 137 - - Other assets: GLB direct embedded derivatives - - 450 450 GLB ceded embedded derivatives 728 728 60 60 Indexed annuity ceded embedded derivatives 799 799 927 927 Separate account assets 130,617 130,617 153,566 153,566 Liabilities Future contract benefits – indexed annuity and IUL contracts embedded derivatives ( 1,380 ) ( 1,380 ) ( 2,585 ) ( 2,585 ) Other contract holder funds: Remaining guaranteed interest and similar contracts ( 1,884 ) ( 1,884 ) ( 1,900 ) ( 1,900 ) Account values of certain investment contracts ( 39,744 ) ( 54,761 ) ( 38,639 ) ( 46,822 ) Short-term debt - - ( 300 ) ( 304 ) Long-term debt ( 6,748 ) ( 5,770 ) ( 6,067 ) ( 6,217 ) Reinsurance related embedded derivatives - - ( 327 ) ( 327 ) Other liabilities: Derivative liabilities (1) ( 1,212 ) ( 1,212 ) ( 349 ) ( 349 ) GLB direct embedded derivatives ( 4,596 ) ( 4,596 ) - - GLB ceded embedded derivatives - - ( 9 ) ( 9 ) (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. |
Schedule of Mortgage Loans With Election Of Fair Value Option | As of March 31, 2020 Commercial mortgage loans: (1) Fair value as of end-of-period $ 765 Aggregate contractual principal as of end-of-period 742 (1) As of March 31, 2020, no loans for which the fair value option has been elected were in non-accrual status and none were more than 90 days past due and still accruing. |
Fair Value Of Assets And Liabilities On A Recurring Basis | As of March 31, 2020 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 $ - $ 81,694 $ 4,103 $ 85,797 U.S. government bonds 470 7 5 482 State and municipal bonds - 5,906 - 5,906 Foreign government bonds - 302 87 389 RMBS - 3,270 1 3,271 CMBS - 1,118 1 1,119 ABS - 4,890 196 5,086 Hybrid and redeemable preferred securities 68 416 72 556 Mortgage loans on real estate - 765 - 765 Trading securities 49 3,319 651 4,019 Equity securities 12 41 30 83 Derivative investments (1) - 2,447 3,213 5,660 Cash and invested cash - 6,202 - 6,202 Reinsurance related embedded derivatives - 137 - 137 Other assets: GLB ceded embedded derivatives - - 728 728 Indexed annuity ceded embedded derivatives - - 799 799 Separate account assets 539 130,068 - 130,607 Total assets $ 1,138 $ 240,582 $ 9,886 $ 251,606 Liabilities Future contract benefits – indexed annuity and IUL contracts embedded derivatives $ - $ - $ ( 1,380 ) $ ( 1,380 ) Other liabilities: Derivative liabilities (1) - ( 1,269 ) ( 1,186 ) ( 2,455 ) GLB direct embedded derivatives - - ( 4,596 ) ( 4,596 ) Total liabilities $ - $ ( 1,269 ) $ ( 7,162 ) $ ( 8,431 ) As of December 31, 2019 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 $ - $ 84,435 $ 4,281 $ 88,716 U.S. government bonds 424 6 5 435 State and municipal bonds - 5,884 - 5,884 Foreign government bonds - 303 90 393 RMBS - 3,230 11 3,241 CMBS - 1,082 1 1,083 ABS - 4,621 268 4,889 Hybrid and redeemable preferred securities 77 404 78 559 Trading securities 50 3,957 666 4,673 Equity securities 25 48 30 103 Derivative investments (1) - 1,212 1,735 2,947 Cash and invested cash - 2,563 - 2,563 Other assets: GLB direct embedded derivatives - - 450 450 GLB ceded embedded derivatives - - 60 60 Indexed annuity ceded embedded derivatives - - 927 927 Separate account assets 639 152,916 - 153,555 Total assets $ 1,215 $ 260,661 $ 8,602 $ 270,478 Liabilities Future contract benefits – indexed annuity and IUL contracts embedded derivatives $ - $ - $ ( 2,585 ) $ ( 2,585 ) Reinsurance related embedded derivatives - ( 327 ) - ( 327 ) Other liabilities: Derivative liabilities (1) - ( 518 ) ( 867 ) ( 1,385 ) GLB ceded embedded derivatives - - ( 9 ) ( 9 ) Total liabilities $ - $ ( 845 ) $ ( 3,461 ) $ ( 4,306 ) (1) Derivative investment assets and liabilities are presented within the fair value hierarchy 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 March 31, 2020 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 $ 4,281 $ - $ ( 385 ) $ 165 $ 42 $ 4,103 U.S. government bonds 5 - - - - 5 Foreign government bonds 90 - ( 3 ) - - 87 RMBS 11 - - - ( 10 ) 1 CMBS 1 - - - - 1 ABS 268 - ( 4 ) 22 ( 90 ) 196 Hybrid and redeemable preferred securities 78 - ( 6 ) - - 72 Trading securities 666 ( 32 ) - ( 6 ) 23 651 Equity securities 30 - - - - 30 Derivative investments 868 997 279 ( 117 ) - 2,027 Other assets: (4) GLB direct embedded derivatives 450 ( 450 ) - - - - GLB ceded embedded derivatives 60 668 - - - 728 Indexed annuity ceded embedded derivatives 927 ( 115 ) - ( 13 ) - 799 Future contract benefits – indexed annuity and IUL contracts embedded derivatives (4) ( 2,585 ) 1,143 - 62 - ( 1,380 ) Other liabilities: (4) GLB direct embedded derivatives - ( 4,596 ) - - - ( 4,596 ) GLB ceded embedded derivatives ( 9 ) 9 - - - - Total, net $ 5,141 $ ( 2,376 ) $ ( 119 ) $ 113 $ ( 35 ) $ 2,724 For the Three Months Ended March 31, 2019 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 $ 3,269 $ ( 1 ) $ 70 $ 200 $ ( 17 ) $ 3,521 Foreign government bonds 109 - 1 - - 110 RMBS 7 - - - ( 7 ) - CMBS 2 - - - - 2 ABS 134 - - 149 ( 105 ) 178 Hybrid and redeemable preferred securities 75 - 3 - - 78 Trading securities 67 - - 206 ( 37 ) 236 Equity securities 25 - - - - 25 Derivative investments 534 ( 383 ) 46 70 - 267 Other assets: (4) GLB direct embedded derivatives 123 316 - - - 439 GLB ceded embedded derivatives 72 ( 22 ) - - - 50 Indexed annuity ceded embedded derivatives 902 77 - ( 107 ) - 872 Future contract benefits – indexed annuity and IUL contracts embedded derivatives (4) ( 1,305 ) ( 316 ) - ( 109 ) - ( 1,730 ) Other liabilities – GLB ceded embedded derivatives (4) - ( 8 ) - - - ( 8 ) Total, net $ 4,014 $ ( 337 ) $ 120 $ 409 $ ( 166 ) $ 4,040 (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 fixed maturity AFS and trading securities are reported at amortized cost as of the beginning-of-year. For fixed maturity AFS and trading securities, the difference between beginning-of-year amortized cost and beginning-of-year fair value was included in OCI and earnings, respectively, in 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 credit loss expense are included in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). (4) Gains (losses) from the changes in fair value are included in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). |
Schedule Of Investment Holdings Movements | For the Three Months Ended March 31, 2020 Issuances Sales Maturities Settlements Calls Total Investments: Fixed maturity AFS securities: Corporate bonds $ 336 $ ( 73 ) $ 2 $ ( 51 ) $ ( 49 ) $ 165 ABS 37 - - ( 15 ) - 22 Trading securities 37 ( 25 ) - ( 18 ) - ( 6 ) Derivative investments 118 ( 123 ) ( 112 ) - - ( 117 ) Other assets – indexed annuity ceded embedded derivatives 9 - - ( 22 ) - ( 13 ) Future contract benefits – indexed annuity and IUL contracts embedded derivatives 11 - - 51 - 62 Total, net $ 548 $ ( 221 ) $ ( 110 ) $ ( 55 ) $ ( 49 ) $ 113 For the Three Months Ended March 31, 2019 Issuances Sales Maturities Settlements Calls Total Investments: Fixed maturity AFS securities: Corporate bonds $ 267 $ ( 2 ) $ ( 7 ) $ ( 51 ) $ ( 7 ) $ 200 ABS 149 - - - - 149 Trading securities 207 - - ( 1 ) - 206 Derivative investments 131 ( 15 ) ( 46 ) - - 70 Other assets – indexed annuity ceded embedded derivatives 19 - - ( 126 ) - ( 107 ) Future contract benefits – indexed annuity and IUL contracts embedded derivatives ( 148 ) - - 39 - ( 109 ) Total, net $ 625 $ ( 17 ) $ ( 53 ) $ ( 139 ) $ ( 7 ) $ 409 |
Changes In Unrealized Gains (Losses) Within Level 3 Financial Instruments Carried At Fair Value And Still Held | For the Three Months Ended March 31, 2020 2019 GLB $ ( 4,867 ) $ 481 Derivative investments 895 ( 287 ) Embedded derivatives: Indexed annuity and IUL contracts ( 61 ) ( 32 ) Total, net (1) $ ( 4,033 ) $ 162 (1) Included in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). |
Changes in Unrealized Gains (Losses) Included in OCI | For the Three Months Ended March 31, 2020 Fixed maturity AFS securities: Corporate bonds $ ( 325 ) Foreign government bonds ( 2 ) ABS ( 3 ) Hybrid and redeemable preferred securities ( 5 ) Total, net $ ( 335 ) |
Components Of The Transfers In And Out Of Level 3 | For the Three For the Three Months Ended Months Ended March 31, 2020 March 31, 2019 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 $ 119 $ ( 77 ) $ 42 $ 83 $ ( 100 ) $ ( 17 ) RMBS - ( 10 ) ( 10 ) - ( 7 ) ( 7 ) ABS 5 ( 95 ) ( 90 ) - ( 105 ) ( 105 ) Trading securities 23 - 23 - ( 37 ) ( 37 ) Total, net $ 147 $ ( 182 ) $ ( 35 ) $ 83 $ ( 249 ) $ ( 166 ) |
Fair Value Inputs Quantitative Information | Weighted Average Fair Valuation Significant Assumption or Input Value Technique Unobservable Inputs Input Ranges Range (1) Assets Investments: Fixed maturity AFS and trading securities: Corporate bonds $ 2,690 Discounted cash flow Liquidity/duration adjustment (2) 0.7 % - 18.8 % 2.9 % Foreign government bonds 47 Discounted cash flow Liquidity/duration adjustment (2) 5.3 % - 8.0 % 6.8 % ABS 20 Discounted cash flow Liquidity/duration adjustment (2) 6.0 % - 6.0 % 6.0 % Hybrid and redeemable preferred securities 4 Discounted cash flow Liquidity/duration adjustment (2) 3.0 % - 3.0 % 3.0 % Equity securities 20 Discounted cash flow Liquidity/duration adjustment (2) 4.5 % - 7.3 % 6.7 % Other assets – GLB ceded embedded derivatives 728 Discounted cash flow Long-term lapse rate (3) 1 % - 30 % (10) Utilization of guaranteed withdrawals (4) 85 % - 100 % 94 % Claims utilization factor (5) 60 % - 100 % (10) Premiums utilization factor (5) 80 % - 115 % (10) NPR (6) 0.03 % - 0.35 % 0.27 % Mortality rate (7) (9) (10) Volatility (8) 1 % - 28 % 13.72 % Indexed annuity ceded embedded derivatives 799 Discounted cash flow Lapse rate (3) 1 % - 9 % (10) Mortality rate (7) (9) (10) Liabilities Future contract benefits – indexed annuity and IUL contracts embedded derivatives $ ( 1,380 ) Discounted cash flow Lapse rate (3) 1 % - 9 % (10) Mortality rate (7) (9) (10) Other liabilities – GLB direct embedded derivatives ( 4,596 ) Discounted cash flow Long-term lapse rate (3) 1 % - 30 % (10) Utilization of guaranteed withdrawals (4) 85 % - 100 % 94 % Claims utilization factor (5) 60 % - 100 % (10) Premiums utilization factor (5) 80 % - 115 % (10) NPR (6) 0.03 % - 0.35 % 0.27 % Mortality rate (7) (9) (10) Volatility (8) 1 % - 28 % 13.72 % (1) Unobservable inputs were weighted by the relative fair value of the instruments, unless otherwise noted. (2) 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. (3) 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. (4) The utilization of guaranteed withdrawals input represents the estimated percentage of contract holders that utilize the guaranteed withdrawal feature. (5) 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. (6) The NPR input represents the estimated additional credit spread that market participants would apply to the market observable discount rate when pricing a contract. The NPR input was weighted by the absolute value of the sensitivity of the reserve to the NPR assumption. (7) 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. (8) 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. Volatility assumptions vary by fund due to the benchmarking of different indices. The volatility input was weighted by the relative account value assigned to each index. (9) The mortality rate is based on a combination of company and industry experience, adjusted for improvement factors. (10) A weighted average input range is not a meaningful measurement for lapse rate, utilization factors or mortality rate. |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Segment Information [Abstract] | |
Reconciliation Of Revenue From Segments To Consolidated | For the Three Months Ended March 31, 2020 2019 Revenues Operating revenues: Annuities $ 1,129 $ 1,174 Retirement Plan Services 297 293 Life Insurance 1,821 1,700 Group Protection 1,224 1,138 Other Operations 38 57 Excluded realized gain (loss), pre-tax ( 75 ) ( 400 ) Amortization of DFEL associated with benefit ratio unlocking, pre-tax ( 9 ) 3 Total revenues $ 4,425 $ 3,965 |
Reconciliation Of Income (Loss) From Operations By Segment To Consolidated Net Income (Loss) | For the Three Months Ended March 31, 2020 2019 Net Income (Loss) Income (loss) from operations: Annuities $ 261 $ 250 Retirement Plan Services 40 39 Life Insurance 171 157 Group Protection 40 55 Other Operations ( 47 ) ( 60 ) Excluded realized gain (loss), after-tax ( 60 ) ( 316 ) Benefit ratio unlocking, after-tax ( 349 ) 142 Acquisition and integration costs related to mergers and acquisitions, after-tax ( 4 ) ( 15 ) Net income (loss) $ 52 $ 252 |
Nature Of Operations and Basi_3
Nature Of Operations and Basis Of Presentation (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2020segment | |
Nature Of Operations and Basis Of Presentation | |
Number of segments | 4 |
New Accounting Standards (Narra
New Accounting Standards (Narrative) (Details) $ in Millions | Jan. 01, 2020USD ($) |
Accounting Standards Update 2016-13 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Cumulative effect of adoption | $ 218 |
Accounting Standards Update 2019-05 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Cumulative effect of adoption | $ 15 |
Variable Interest Entities (Nar
Variable Interest Entities (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Variable Interest Entity [Line Items] | |||
Gains (losses) for consolidated variable interest entities | $ 0 | $ 0 | |
Carrying amount of other investments | 4,765 | 2,994 | |
Maximum [Member] | |||
Variable Interest Entity [Line Items] | |||
Income Tax Credits And Other Tax Benefits From Qualified Affordable Housing Projects | 1 | $ 1 | |
Limited Partnerships and Limited Liability Companies [Member] | |||
Variable Interest Entity [Line Items] | |||
Carrying amount of other investments | 2,000 | 1,900 | |
Carrying Amount Of Investments In Qualified Affordable Housing Projects | $ 11 | $ 13 |
Variable Interest Entities (Con
Variable Interest Entities (Consolidated Variable Interest Entity Asset and Liability Information) (Details) - Total Return Swap [Member] - Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments [Member] $ in Millions | Mar. 31, 2020USD ($)security | Dec. 31, 2019USD ($)security |
Disclosure Of Variable Interest Entities Assets And Liabilities [Line Items] | ||
Number of Instruments, Assets | security | 1 | 1 |
Notional Amounts, Assets | $ | $ 596 | $ 613 |
Investments (Narrative) (Detail
Investments (Narrative) (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020USD ($)itemsecurityloan | Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($)securityloanitem | |
Investments [Line Items] | |||
Increase (decrease) in gross AFS securities unrealized losses | $ 2,100 | ||
Impaired financing receivable, change in recorded allowance | $ 0 | ||
Number of partnerships in alternative investment portfolio | item | 260 | 258 | |
Alternative investments as a percentage of overall invested assets | 1.00% | 1.00% | |
Net portion of OTTI recognized in OCI, pre-tax | $ 15 | ||
Fair value of collateral received that we are permitted to sell or re-pledge | 25 | ||
Securities that have been re-pledged | 25 | ||
Investment commitments | 1,600 | ||
Investment commitments for limited partnerships | 1,000 | ||
Investment commitments for mortgage loans on real estate | 365 | ||
Investment commitments for private placements | 197 | ||
Federal Home Loan Mortgage Corporation [Member] | Investments [Member] | |||
Investments [Line Items] | |||
Fair value | $ 1,400 | $ 1,300 | |
Concentration risk, percentage | 1.00% | 1.00% | |
Federal National Mortgage Association [Member] | Investments [Member] | |||
Investments [Line Items] | |||
Fair value | $ 1,100 | $ 1,000 | |
Concentration risk, percentage | 1.00% | 1.00% | |
Consumer Non-Cyclical Industry [Member] | Investments [Member] | |||
Investments [Line Items] | |||
Fair value | $ 16,400 | $ 16,300 | |
Concentration risk, percentage | 12.00% | 12.00% | |
Financial Service [Member] | Investments [Member] | |||
Investments [Line Items] | |||
Fair value | $ 15,700 | $ 16,400 | |
Concentration risk, percentage | 12.00% | 12.00% | |
Corporate Bonds [Member] | |||
Investments [Line Items] | |||
Percentage of fair value rated as investment grade | 96.00% | 96.00% | |
Amortized cost of portfolio rated below investment grade | $ 3,900 | $ 3,200 | |
Fair value of portfolio rated below investment grade | $ 3,500 | $ 3,300 | |
MBS [Member] | |||
Investments [Line Items] | |||
Severity of second lien loans | 100.00% | ||
Severity of first lien loans | 30.00% | ||
Commercial [Member] | |||
Investments [Line Items] | |||
Number of impaired loans | security | 2 | 1 | |
Percentage threshold of loan-to-value ratios indicating principal is greater than collateral value | 100.00% | ||
Debt-service coverage ratio threshold | item | 1 | ||
Commercial [Member] | Maximum [Member] | |||
Investments [Line Items] | |||
Impaired financing receivable, principal balance | $ 1 | $ 1 | |
Commercial [Member] | Mortgage Loans On Real Estate [Member] | Geographic Concentration Risk [Member] | California [Member] | |||
Investments [Line Items] | |||
Concentration risk, percentage | 24.00% | 24.00% | |
Commercial [Member] | Mortgage Loans On Real Estate [Member] | Geographic Concentration Risk [Member] | Texas [Member] | |||
Investments [Line Items] | |||
Concentration risk, percentage | 11.00% | 11.00% | |
Residential [Member] | |||
Investments [Line Items] | |||
Number of loans past due | loan | 44 | 38 | |
Number of impaired loans | security | 24 | 4 | |
Impaired financing receivable, principal balance | $ 6 | $ 1 | |
Residential [Member] | Mortgage Loans On Real Estate [Member] | Geographic Concentration Risk [Member] | California [Member] | |||
Investments [Line Items] | |||
Concentration risk, percentage | 34.00% | 34.00% | |
Residential [Member] | Mortgage Loans On Real Estate [Member] | Geographic Concentration Risk [Member] | Florida [Member] | |||
Investments [Line Items] | |||
Concentration risk, percentage | 18.00% | 20.00% |
Investments (Reconciliation Of
Investments (Reconciliation Of Available-For-Sale Securities From Cost Basis To Fair Value) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | ||
Amortized Cost | $ 96,217 | $ 94,295 |
ACL | (20) | 0 |
Fair Value | 102,606 | 105,200 |
Corporate Bonds [Member] | ||
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | ||
ACL | (20) | |
Fixed Maturity AFS Securities [Member] | ||
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | ||
Amortized Cost | 96,217 | 94,295 |
Gross unrealized gains | 8,745 | 11,086 |
Gross unrealized losses | 2,336 | 240 |
ACL | 20 | |
OTTI | (59) | |
Fair Value | 102,606 | 105,200 |
Fixed Maturity AFS Securities [Member] | Corporate Bonds [Member] | ||
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | ||
Amortized Cost | 80,785 | 79,417 |
Gross unrealized gains | 7,031 | 9,479 |
Gross unrealized losses | 1,999 | 184 |
ACL | 20 | |
OTTI | (4) | |
Fair Value | 85,797 | 88,716 |
Fixed Maturity AFS Securities [Member] | U.S. Government Bonds [Member] | ||
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | ||
Amortized Cost | 380 | 384 |
Gross unrealized gains | 102 | 51 |
Fair Value | 482 | 435 |
Fixed Maturity AFS Securities [Member] | State And Municipal Bonds [Member] | ||
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | ||
Amortized Cost | 4,797 | 4,778 |
Gross unrealized gains | 1,123 | 1,113 |
Gross unrealized losses | 14 | 7 |
Fair Value | 5,906 | 5,884 |
Fixed Maturity AFS Securities [Member] | Foreign Government Bonds [Member] | ||
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | ||
Amortized Cost | 329 | 329 |
Gross unrealized gains | 63 | 64 |
Gross unrealized losses | 3 | |
Fair Value | 389 | 393 |
Fixed Maturity AFS Securities [Member] | RMBS [Member] | ||
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | ||
Amortized Cost | 3,014 | 3,042 |
Gross unrealized gains | 277 | 190 |
Gross unrealized losses | 20 | 10 |
OTTI | (19) | |
Fair Value | 3,271 | 3,241 |
Fixed Maturity AFS Securities [Member] | CMBS [Member] | ||
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | ||
Amortized Cost | 1,089 | 1,038 |
Gross unrealized gains | 39 | 45 |
Gross unrealized losses | 9 | 1 |
OTTI | (1) | |
Fair Value | 1,119 | 1,083 |
Fixed Maturity AFS Securities [Member] | ABS [Member] | ||
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | ||
Amortized Cost | 5,259 | 4,810 |
Gross unrealized gains | 59 | 62 |
Gross unrealized losses | 232 | 18 |
OTTI | (35) | |
Fair Value | 5,086 | 4,889 |
Fixed Maturity AFS Securities [Member] | Hybrid And Redeemable Preferred Securities [Member] | ||
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | ||
Amortized Cost | 564 | 497 |
Gross unrealized gains | 51 | 82 |
Gross unrealized losses | 59 | 20 |
Fair Value | $ 556 | $ 559 |
Investments (Available-For-Sale
Investments (Available-For-Sale Securities By Contractual Maturities) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Available-for-sale Securities, Debt Maturities, Amortized Cost | ||
Amortized Cost | $ 96,217 | $ 94,295 |
Available-for-sale Securities, Debt Maturities, Fair Value | ||
Fair Value | 102,606 | 105,200 |
Fixed Maturity AFS Securities [Member] | ||
Available-for-sale Securities, Debt Maturities, Amortized Cost | ||
Due in one year or less | 3,008 | |
Due after one year through five years | 14,806 | |
Due after five years through ten years | 17,319 | |
Due after ten years | 51,722 | |
Amortized Cost | 96,217 | 94,295 |
Available-for-sale Securities, Debt Maturities, Fair Value | ||
Due in one year or less | 2,980 | |
Due after one year through five years | 14,836 | |
Due after five years through ten years | 17,804 | |
Due after ten years | 57,510 | |
Fair Value | 102,606 | $ 105,200 |
Fixed Maturity AFS Securities [Member] | Fixed maturity AFS securities other than structured securities [Member] | ||
Available-for-sale Securities, Debt Maturities, Amortized Cost | ||
Amortized Cost | 86,855 | |
Available-for-sale Securities, Debt Maturities, Fair Value | ||
Fair Value | 93,130 | |
Fixed Maturity AFS Securities [Member] | Structured securities [Member] | ||
Available-for-sale Securities, Debt Maturities, Amortized Cost | ||
Amortized Cost | 9,362 | |
Available-for-sale Securities, Debt Maturities, Fair Value | ||
Fair Value | $ 9,476 |
Investments (Fair Value And Gro
Investments (Fair Value And Gross Unrealized Losses In A Continuous Unrealized Loss Position) (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2020USD ($)security | Dec. 31, 2019USD ($)security | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ||
Total number of AFS securities in an unrealized loss position | security | 895 | |
Fixed Maturity AFS Securities [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ||
Less Than or Equal to Twelve Months | $ 26,979 | $ 5,673 |
Greater Than Twelve Months | 1,168 | 1,848 |
Fair Value - Total | 28,147 | 7,521 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ||
Less Than or Equal to Twelve Months | 2,008 | 73 |
Greater Than Twelve Months | 328 | 170 |
Gross Unrealized Losses - Total | $ 2,336 | 243 |
Total number of AFS securities in an unrealized loss position | security | 2,724 | |
Unrealized holding gains (losses) arising during the period | $ 22 | |
Fixed Maturity AFS Securities [Member] | Corporate Bonds [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ||
Less Than or Equal to Twelve Months | 21,648 | 2,935 |
Greater Than Twelve Months | 828 | 1,406 |
Fair Value - Total | 22,476 | 4,341 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ||
Less Than or Equal to Twelve Months | 1,745 | 46 |
Greater Than Twelve Months | 254 | 141 |
Gross Unrealized Losses - Total | 1,999 | 187 |
Fixed Maturity AFS Securities [Member] | State And Municipal Bonds [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ||
Less Than or Equal to Twelve Months | 364 | 333 |
Greater Than Twelve Months | 18 | |
Fair Value - Total | 364 | 351 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ||
Less Than or Equal to Twelve Months | 14 | 7 |
Gross Unrealized Losses - Total | 14 | 7 |
Fixed Maturity AFS Securities [Member] | Foreign Government Bonds [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ||
Less Than or Equal to Twelve Months | 27 | |
Fair Value - Total | 27 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ||
Less Than or Equal to Twelve Months | 3 | |
Gross Unrealized Losses - Total | 3 | |
Fixed Maturity AFS Securities [Member] | RMBS [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ||
Less Than or Equal to Twelve Months | 352 | 536 |
Greater Than Twelve Months | 5 | 15 |
Fair Value - Total | 357 | 551 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ||
Less Than or Equal to Twelve Months | 19 | 10 |
Greater Than Twelve Months | 1 | |
Gross Unrealized Losses - Total | 20 | 10 |
Fixed Maturity AFS Securities [Member] | CMBS [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ||
Less Than or Equal to Twelve Months | 250 | 48 |
Greater Than Twelve Months | 2 | 4 |
Fair Value - Total | 252 | 52 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ||
Less Than or Equal to Twelve Months | 9 | 1 |
Gross Unrealized Losses - Total | 9 | 1 |
Fixed Maturity AFS Securities [Member] | ABS [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ||
Less Than or Equal to Twelve Months | 4,160 | 1,792 |
Greater Than Twelve Months | 255 | 303 |
Fair Value - Total | 4,415 | 2,095 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ||
Less Than or Equal to Twelve Months | 196 | 8 |
Greater Than Twelve Months | 36 | 10 |
Gross Unrealized Losses - Total | 232 | 18 |
Fixed Maturity AFS Securities [Member] | Hybrid And Redeemable Preferred Securities [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ||
Less Than or Equal to Twelve Months | 178 | 29 |
Greater Than Twelve Months | 78 | 102 |
Fair Value - Total | 256 | 131 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ||
Less Than or Equal to Twelve Months | 22 | 1 |
Greater Than Twelve Months | 37 | 19 |
Gross Unrealized Losses - Total | $ 59 | $ 20 |
Investments (Schedule Of Availa
Investments (Schedule Of Available-For-Sale Securities Whose Value Is Below Amortized Cost) (Details) $ in Millions | Mar. 31, 2020USD ($)security | Dec. 31, 2019USD ($)security |
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Securities - Total | security | 895 | |
Fair Value Decline, Greater Than 20% [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value - Less than six months | $ 1,528 | $ 15 |
Fair Value - Six months or greater, but less than nine months | 10 | |
Fair Value - Twelve months or greater | 50 | 132 |
Fair Value - Total | 1,578 | 157 |
Gross Unrealized Losses - Less than six months | 803 | 5 |
Gross Unrealized Losses - Six months or greater, but less than nine months | 3 | |
Gross Unrealized Losses - Twelve months or greater | 60 | 76 |
Gross Unrealized Losses - Total | $ 863 | $ 84 |
Number of Securities - Less than six months | security | 185 | 7 |
Number of Securities - Six months or greater, but less than nine months | security | 4 | |
Number of Securities - Twelve months or greater | security | 23 | 31 |
Number of Securities - Total | security | 208 | 42 |
Investments (Changes In Allowan
Investments (Changes In Allowance For Credit Losses On AFS) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items] | ||
Balance as of beginning-of-year | $ 0 | |
Additions for securities for which credit losses were not previously recognized | 20 | $ 8 |
Balance as of end of-period | 20 | |
Accrued interest receivable on fixed maturity AFS securities | 1,000 | |
Corporate Bonds [Member] | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items] | ||
Additions for securities for which credit losses were not previously recognized | 20 | |
Balance as of end of-period | $ 20 |
Investments (Schedule Of Change
Investments (Schedule Of Changes in Amount Of Credit Losses Of OTTI Recognized In Net Income (Loss)) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Investments [Abstract] | |
Balance as of beginning-of-year | $ 355 |
Increases attributable to: | |
Credit losses on securities for which an OTTI was not previously recognized | 6 |
Credit losses on securities for which an OTTI was previously recognized | 2 |
Decreases attributable to: | |
Securities sold, paid down or matured | (4) |
Balance as of end-of-period | $ 359 |
Investments (Composition Of Cur
Investments (Composition Of Current And Past Due Mortgage Loans On Real Estate) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Mortgage Loans On Real Estate Aging [Abstract] | ||
Current | $ 16,875 | $ 16,279 |
Allowance for credit losses | (161) | (2) |
Unamortized premium (discount) | 8 | 6 |
Mark-to-market gains (losses) | 26 | |
Total carrying value | 16,791 | 16,339 |
30 to 59 Days Past Due [Member] | ||
Mortgage Loans On Real Estate Aging [Abstract] | ||
Past due | 16 | 30 |
60 to 89 Days Past Due [Member] | ||
Mortgage Loans On Real Estate Aging [Abstract] | ||
Past due | 4 | 10 |
90 Or More Days Past Due [Member] | ||
Mortgage Loans On Real Estate Aging [Abstract] | ||
Past due | 23 | 16 |
Commercial [Member] | ||
Mortgage Loans On Real Estate Aging [Abstract] | ||
Current | 16,168 | 15,620 |
Allowance for credit losses | (126) | |
Unamortized premium (discount) | (16) | (17) |
Mark-to-market gains (losses) | 26 | |
Total carrying value | 16,052 | 15,606 |
Commercial [Member] | 30 to 59 Days Past Due [Member] | ||
Mortgage Loans On Real Estate Aging [Abstract] | ||
Past due | 3 | |
Residential [Member] | ||
Mortgage Loans On Real Estate Aging [Abstract] | ||
Current | 707 | 659 |
Allowance for credit losses | (35) | (2) |
Unamortized premium (discount) | 24 | 23 |
Total carrying value | 739 | 733 |
Residential [Member] | 30 to 59 Days Past Due [Member] | ||
Mortgage Loans On Real Estate Aging [Abstract] | ||
Past due | 16 | 27 |
Residential [Member] | 60 to 89 Days Past Due [Member] | ||
Mortgage Loans On Real Estate Aging [Abstract] | ||
Past due | 4 | 10 |
Residential [Member] | 90 Or More Days Past Due [Member] | ||
Mortgage Loans On Real Estate Aging [Abstract] | ||
Past due | $ 23 | $ 16 |
Investments (Schedule Of Averag
Investments (Schedule Of Average Carrying Value Of Impaired Mortgage Loans On Real Estate) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Information about impaired mortgage loans on real estate | ||
Average carrying value for impaired mortgage loans on real estate | $ 3 | |
Interest income recognized on impaired mortgage loans on real estate | ||
Interest income collected on impaired mortgage loans on real estate |
Investments (Amortized Cost Of
Investments (Amortized Cost Of Mortgage Loans On Real Estate On Nonaccrual Status) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual | $ 24 | $ 17 |
Commercial [Member] | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual with no ACL | ||
Nonaccrual | ||
Residential [Member] | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual | $ 24 | $ 17 |
Investments (Credit Quality Ind
Investments (Credit Quality Indicators For Commercial Mortgage Loans) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Commercial [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Amortized Cost | $ 16,152 | $ 15,606 |
Percent of total | 100.00% | 100.00% |
Loan-to-value ratio, less than 65% [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Amortized Cost | $ 14,723 | $ 14,206 |
Percent of total | 91.20% | 91.00% |
Debt-service coverage ratio | 2.40 | 2.35 |
Loan-to-value ratio, less than 65% [Member] | Commercial [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Amortized Cost | $ 14,723 | |
Loan-to-value ratio, 65% to 74% [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Amortized Cost | $ 1,428 | $ 1,399 |
Percent of total | 8.80% | 9.00% |
Debt-service coverage ratio | 1.85 | 1.87 |
Loan-to-value ratio, 65% to 74% [Member] | Commercial [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Amortized Cost | $ 1,428 | |
Loan-to-value ratio, 75% to 100% [Member] | Commercial [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Amortized Cost | $ 1 | $ 1 |
Percent of total | 0.00% | 0.00% |
Debt-service coverage ratio | 0.90 | 1.09 |
Investments (Commercial Mortgag
Investments (Commercial Mortgage Loans By Year Of Origination) (Details) $ in Millions | Mar. 31, 2020USD ($)item | Dec. 31, 2019USD ($) |
Loan-to-value ratio, less than 65% [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | $ 14,723 | $ 14,206 |
Loan-to-value ratio, 65% to 74% [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 1,428 | 1,399 |
Commercial [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 715 | |
2019 | 3,457 | |
2018 | 2,617 | |
2017 | 2,000 | |
2016 | 1,949 | |
2015 and prior | 5,414 | |
Total | 16,152 | 15,606 |
Commercial [Member] | Loan-to-value ratio, less than 65% [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 654 | |
2019 | 2,964 | |
2018 | 2,346 | |
2017 | 1,798 | |
2016 | 1,732 | |
2015 and prior | 5,229 | |
Total | $ 14,723 | |
2020 | item | 3.57 | |
2019 | item | 2.29 | |
2018 | item | 2.17 | |
2017 | item | 2.34 | |
2016 | item | 2.37 | |
2015 and prior | item | 2.43 | |
Commercial [Member] | Loan-to-value ratio, 65% to 74% [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | $ 61 | |
2019 | 493 | |
2018 | 271 | |
2017 | 202 | |
2016 | 217 | |
2015 and prior | 184 | |
Total | $ 1,428 | |
2020 | item | 1.47 | |
2019 | item | 1.78 | |
2018 | item | 1.48 | |
2017 | item | 2.67 | |
2016 | item | 1.92 | |
2015 and prior | item | 1.68 | |
Commercial [Member] | Loan-to-value ratio, 75% to 100% [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2015 and prior | $ 1 | |
Total | $ 1 | $ 1 |
2015 and prior | item | 0.90 |
Investments (Credit Quality I_2
Investments (Credit Quality Indicators For Residential Mortgage Loans) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Mortgage Loans Credit Quality [Line Items] | ||
Mortgage loans on real estate, ACL | $ 161 | $ 2 |
Residential [Member] | ||
Mortgage Loans Credit Quality [Line Items] | ||
Amortized Cost | $ 774 | $ 735 |
Percent of total | 100.00% | 100.00% |
Mortgage loans on real estate, ACL | $ 35 | $ 2 |
Performing [Member] | Residential [Member] | ||
Mortgage Loans Credit Quality [Line Items] | ||
Amortized Cost | $ 750 | $ 718 |
Percent of total | 96.90% | 97.70% |
Nonperforming [Member] | Residential [Member] | ||
Mortgage Loans Credit Quality [Line Items] | ||
Amortized Cost | $ 24 | $ 17 |
Percent of total | 3.10% | 2.30% |
Investments (Residential Mortga
Investments (Residential Mortgage Loans By Year Of Origination) (Details) - Residential [Member] - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | $ 73 | |
2019 | 472 | |
2018 | 229 | |
Total | 774 | $ 735 |
Performing [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 73 | |
2019 | 454 | |
2018 | 223 | |
Total | 750 | 718 |
Nonperforming [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2019 | 18 | |
2018 | 6 | |
Total | $ 24 | $ 17 |
Investmenst (Changes In Allowan
Investmenst (Changes In Allowance For Credit Losses On Mortgage Loans On Real Estate) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Balance as of beginning-of-year, prior to adoption of ASU 2016-13 | $ 2 |
Additions from provision for credit loss expense | 71 |
Balance as of end-of-period | 161 |
Accrued interest receivable excluded from credit losses | 50 |
Cumulative Effect, Period of Adoption, Adjustment [Member] | |
Balance as of end-of-period | 88 |
Commercial [Member] | |
Additions from provision for credit loss expense | 64 |
Balance as of end-of-period | 126 |
Commercial [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | |
Balance as of end-of-period | 62 |
Residential [Member] | |
Balance as of beginning-of-year, prior to adoption of ASU 2016-13 | 2 |
Additions from provision for credit loss expense | 7 |
Balance as of end-of-period | 35 |
Residential [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | |
Balance as of end-of-period | $ 26 |
Investments (Credit Loss Expens
Investments (Credit Loss Expense Incurred) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items] | ||
Gross credit loss expense recognized in net income (loss) | $ (20) | $ (8) |
Net credit loss expense recognized in net income (loss) | (20) | (8) |
Corporate Bonds [Member] | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items] | ||
Gross credit loss expense recognized in net income (loss) | (20) | (6) |
Net credit loss expense recognized in net income (loss) | $ (20) | |
RMBS [Member] | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items] | ||
Gross credit loss expense recognized in net income (loss) | (1) | |
ABS [Member] | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items] | ||
Gross credit loss expense recognized in net income (loss) | $ (1) |
Investments (Payables For Colla
Investments (Payables For Collateral On Investments) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Carrying Value Of Payables For Collateral On Investments [Abstract] | ||
Collateral payable for derivative investments | $ 3,943 | $ 1,388 |
Securities pledged under securities lending agreements | 161 | 114 |
Investments pledged for Federal Home Loan Bank of Indianapolis ('FHLBI') | 4,330 | 3,580 |
Total payables for collateral on investments | 8,434 | 5,082 |
Fair Value Of Related Investments Or Collateral [Abstract] | ||
Collateral payable for derivative investments | 3,943 | 1,388 |
Securities pledged under securities lending agreements | 156 | 110 |
Investments pledged for Federal Home Loan Bank of Indianapolis('FHLBI') | 6,970 | 5,480 |
Total payables for collateral on investments | $ 11,069 | $ 6,978 |
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% | |
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% |
Investments (Schedule Of Increa
Investments (Schedule Of Increase (Decrease) In Payables For Collateral On Investments) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Increase (decrease) in payables for collateral on investments | ||
Collateral payable for derivative investments | $ 2,555 | $ 58 |
Securities pledged under securities lending agreements | 47 | 48 |
Securities pledged under repurchase agreements | 1 | |
Investments pledged for FHLBI | 750 | 450 |
Total increase (decrease) in payables for collateral on investments | $ 3,352 | $ 557 |
Investments (Schedule of Securi
Investments (Schedule of Securities Pledged by Contractual Maturity) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities Lending | $ 161 | $ 114 |
Corporate Bonds [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities Lending | 160 | 114 |
Foreign Government Bonds [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities Lending | 1 | |
Overnight and Continuous [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities Lending | 161 | 114 |
Overnight and Continuous [Member] | Corporate Bonds [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities Lending | 160 | $ 114 |
Overnight and Continuous [Member] | Foreign Government Bonds [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities Lending | $ 1 |
Derivative Instruments (Narrati
Derivative Instruments (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Credit Derivatives [Line Items] | |||
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | $ 33 | ||
Cash flow hedge, reclassified to earnings, net | 0 | $ 0 | |
Non-performance Risk Adjustment | 0 | ||
Exposure Associated With Collateralization Events | 0 | $ 0 | |
Credit Default Swap, Seller [Member] | |||
Credit Derivatives [Line Items] | |||
Collateral Requirement If Netting Agreements Not In Place | $ 2 | ||
Indexed Annuity [Member] | |||
Credit Derivatives [Line Items] | |||
Derivative term | 6 years |
Derivative Instruments (Outstan
Derivative Instruments (Outstanding Derivative Instruments With Off-Balance-Sheet Risks) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Outstanding derivative instruments with off-balance-sheet risks | ||
Notional Amounts | $ 182,504 | |
Interest Rate Contracts [Member] | ||
Outstanding derivative instruments with off-balance-sheet risks | ||
Notional Amounts | 123,248 | |
Foreign currency contracts [Member] | ||
Outstanding derivative instruments with off-balance-sheet risks | ||
Notional Amounts | 3,078 | |
Equity market contracts [Member] | ||
Outstanding derivative instruments with off-balance-sheet risks | ||
Notional Amounts | 55,784 | |
Credit contracts [Member] | ||
Outstanding derivative instruments with off-balance-sheet risks | ||
Notional Amounts | 394 | |
Total Derivative Instruments [Member] | ||
Outstanding derivative instruments with off-balance-sheet risks | ||
Notional Amounts | 182,504 | $ 163,315 |
Asset Fair Value | 7,324 | 4,384 |
Liability Fair Value | 8,431 | 4,306 |
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 | 119,681 | 112,921 |
Asset Fair Value | 1,890 | 1,082 |
Liability Fair Value | 140 | 219 |
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 | 166 | 262 |
Asset Fair Value | 11 | 1 |
Liability Fair Value | 3 | |
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 | 55,784 | 43,555 |
Asset Fair Value | 2,819 | 1,442 |
Liability Fair Value | 1,112 | 664 |
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 | 394 | 55 |
Derivative Investments [Member] | Cash Flow Hedges [Member] | Designated as Hedging Instrument [Member] | ||
Outstanding derivative instruments with off-balance-sheet risks | ||
Notional Amounts | 5,309 | 5,261 |
Asset Fair Value | 940 | 299 |
Liability Fair Value | 866 | 296 |
Derivative Investments [Member] | Cash Flow Hedges [Member] | Interest Rate Contracts [Member] | Designated as Hedging Instrument [Member] | ||
Outstanding derivative instruments with off-balance-sheet risks | ||
Notional Amounts | 2,397 | 2,387 |
Asset Fair Value | 334 | 108 |
Liability Fair Value | 853 | 245 |
Derivative Investments [Member] | Cash Flow Hedges [Member] | Foreign currency contracts [Member] | Designated as Hedging Instrument [Member] | ||
Outstanding derivative instruments with off-balance-sheet risks | ||
Notional Amounts | 2,912 | 2,874 |
Asset Fair Value | 606 | 191 |
Liability Fair Value | 13 | 51 |
Derivative Investments [Member] | Fair Value Hedges [Member] | Interest Rate Contracts [Member] | Designated as Hedging Instrument [Member] | ||
Outstanding derivative instruments with off-balance-sheet risks | ||
Notional Amounts | 1,170 | 1,261 |
Asset Fair Value | 123 | |
Liability Fair Value | 337 | 203 |
Other Assets [Member] | GLB Direct Embedded Derivatives [Member] | Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments [Member] | ||
Outstanding derivative instruments with off-balance-sheet risks | ||
Asset Fair Value | 450 | |
Liability Fair Value | 4,596 | |
Other Liabilities [Member] | GLB Ceded Embedded Derivatives [Member] | Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments [Member] | ||
Outstanding derivative instruments with off-balance-sheet risks | ||
Asset Fair Value | 728 | 60 |
Liability Fair Value | 9 | |
Reinsurance Related Embedded Derivatives [Member] | Reinsurance Related [Member] | Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments [Member] | ||
Outstanding derivative instruments with off-balance-sheet risks | ||
Asset Fair Value | 137 | |
Liability Fair Value | 327 | |
Future Contract Benefits [Member] | Indexed Annuity And IUL Contracts [Member] | Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments [Member] | ||
Outstanding derivative instruments with off-balance-sheet risks | ||
Asset Fair Value | 799 | 927 |
Liability Fair Value | $ 1,380 | $ 2,585 |
Derivative Instruments (Maturit
Derivative Instruments (Maturity Of The Notional Amounts Of Derivative Financial Instruments) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Maturity of the notional amounts of derivative financial instruments | |
Remaining Life Less Than 1 Year | $ 46,057 |
Remaining Life - 1 - 5 Years | 62,910 |
Remaining Life - 6 - 10 Years | 30,552 |
Remaining Life - 11 - 30 Years | 34,818 |
Remaining Life Over - 30 Years | 8,167 |
Remaining Life - Total Years | 182,504 |
Interest Rate Contracts [Member] | |
Maturity of the notional amounts of derivative financial instruments | |
Remaining Life Less Than 1 Year | 15,089 |
Remaining Life - 1 - 5 Years | 48,226 |
Remaining Life - 6 - 10 Years | 24,802 |
Remaining Life - 11 - 30 Years | 33,300 |
Remaining Life Over - 30 Years | 1,831 |
Remaining Life - Total Years | $ 123,248 |
Derivative maturity date | Apr. 20, 2067 |
Foreign currency contracts [Member] | |
Maturity of the notional amounts of derivative financial instruments | |
Remaining Life Less Than 1 Year | $ 146 |
Remaining Life - 1 - 5 Years | 370 |
Remaining Life - 6 - 10 Years | 1,013 |
Remaining Life - 11 - 30 Years | 1,507 |
Remaining Life Over - 30 Years | 42 |
Remaining Life - Total Years | $ 3,078 |
Derivative maturity date | Jun. 17, 2050 |
Equity market contracts [Member] | |
Maturity of the notional amounts of derivative financial instruments | |
Remaining Life Less Than 1 Year | $ 30,822 |
Remaining Life - 1 - 5 Years | 14,314 |
Remaining Life - 6 - 10 Years | 4,343 |
Remaining Life - 11 - 30 Years | 11 |
Remaining Life Over - 30 Years | 6,294 |
Remaining Life - Total Years | 55,784 |
Credit contracts [Member] | |
Maturity of the notional amounts of derivative financial instruments | |
Remaining Life - 6 - 10 Years | 394 |
Remaining Life - Total Years | $ 394 |
Derivative Instruments (Cumulat
Derivative Instruments (Cumulative Basis Adjustments For Fair Value Hedges) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Fixed Maturity AFS Securities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Amortized cost of the hedged assets | $ 890 | $ 776 |
Cumulative fair value hedging adjustment included in the amortized cost of the hedged assets | 328 | 202 |
Long-term Debt [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Amortized cost of the hedged liabilities | (954) | (1,035) |
Cumulative fair value hedging adjustment included in the amortized cost of the hedged liabilities | (79) | (160) |
Discontinued Hedges [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Cumulative fair value hedging adjustment included in the amortized cost of the hedged liabilities | $ (381) | $ (118) |
Derivative Instruments (Change
Derivative Instruments (Change In Our Unrealized Gain On Derivative Instruments In Accumulated OCI) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Change in our unrealized gain on derivative instruments in accumulated OCI | ||
Balance as of beginning-of-year | $ 5,673 | |
Income tax benefit (expense) | 18 | $ (16) |
Balance as of end-of-period | 3,004 | |
Unrealized Gain (Loss) on Derivative Instruments [Member] | ||
Change in our unrealized gain on derivative instruments in accumulated OCI | ||
Balance as of beginning-of-year | (11) | 139 |
Change in foreign currency exchange rate adjustment | 153 | (14) |
Change in DAC, VOBA, DSI and DFEL | (53) | 6 |
Income tax benefit (expense) | (8) | 10 |
Reclassification adjustment for gains (losses) included in net income (loss) | 9 | 8 |
Associated amortization of DAC, VOBA, DSI and DFEL | (6) | (1) |
Income tax benefit (expense) | (1) | (1) |
Balance as of end-of-period | 8 | 99 |
Unrealized Gain (Loss) on Derivative Instruments [Member] | Cash Flow Hedges [Member] | Interest Rate Contracts [Member] | ||
Change in our unrealized gain on derivative instruments in accumulated OCI | ||
Unrealized holding gains (losses) arising during the period | (383) | (47) |
Unrealized Gain (Loss) on Derivative Instruments [Member] | Cash Flow Hedges [Member] | 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 | |
Unrealized Gain (Loss) on Derivative Instruments [Member] | Cash Flow Hedges [Member] | 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) | (3) | (1) |
Unrealized Gain (Loss) on Derivative Instruments [Member] | Cash Flow Hedges [Member] | Foreign currency contracts [Member] | ||
Change in our unrealized gain on derivative instruments in accumulated OCI | ||
Unrealized holding gains (losses) arising during the period | 312 | 11 |
Unrealized Gain (Loss) on Derivative Instruments [Member] | Cash Flow Hedges [Member] | 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) | 11 | 7 |
Unrealized Gain (Loss) on Derivative Instruments [Member] | Cash Flow Hedges [Member] | 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) | $ 1 | $ 1 |
Derivative Instruments (Effects
Derivative Instruments (Effects Of Qualifying And Non-Qualifying Hedges) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Realized Gain (Loss) [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total Line Items in which the Effects of Fair Value or Cash Flow Hedges are Recorded | $ (24) | $ (362) |
Net Investment Income [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total Line Items in which the Effects of Fair Value or Cash Flow Hedges are Recorded | 1,375 | 1,251 |
Interest and Debt Expense [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total Line Items in which the Effects of Fair Value or Cash Flow Hedges are Recorded | 68 | 71 |
Interest Rate Contracts [Member] | Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments [Member] | Realized Gain (Loss) [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Non-Qualifying Hedges Gain (Loss) | 2,150 | 357 |
Interest Rate Contracts [Member] | Cash Flow Hedges [Member] | Designated as Hedging Instrument [Member] | Net Investment Income [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain or (loss) reclassified from AOCI into income | 1 | |
Interest Rate Contracts [Member] | Cash Flow Hedges [Member] | Designated as Hedging Instrument [Member] | Interest and Debt Expense [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain or (loss) reclassified from AOCI into income | (3) | (1) |
Interest Rate Contracts [Member] | Fair Value Hedges [Member] | Designated as Hedging Instrument [Member] | Net Investment Income [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Hedged items | 127 | 24 |
Derivatives designated as hedging instruments | (127) | (24) |
Interest Rate Contracts [Member] | Fair Value Hedges [Member] | Designated as Hedging Instrument [Member] | Interest and Debt Expense [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Hedged items | 82 | (34) |
Derivatives designated as hedging instruments | (82) | 34 |
Foreign currency contracts [Member] | Cash Flow Hedges [Member] | Designated as Hedging Instrument [Member] | Realized Gain (Loss) [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain or (loss) reclassified from AOCI into income | 1 | 1 |
Foreign currency contracts [Member] | Cash Flow Hedges [Member] | Designated as Hedging Instrument [Member] | Net Investment Income [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain or (loss) reclassified from AOCI into income | 11 | 7 |
Equity market contracts [Member] | Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments [Member] | Realized Gain (Loss) [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Non-Qualifying Hedges Gain (Loss) | 1,070 | (458) |
Credit contracts [Member] | Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments [Member] | Realized Gain (Loss) [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Non-Qualifying Hedges Gain (Loss) | (4) | |
Embedded derivatives - GLB [Member] | Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments [Member] | Realized Gain (Loss) [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Non-Qualifying Hedges Gain (Loss) | (4,369) | 286 |
Reinsurance Related [Member] | Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments [Member] | Realized Gain (Loss) [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Non-Qualifying Hedges Gain (Loss) | 463 | (174) |
Indexed Annuity And IUL Contracts [Member] | Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments [Member] | Realized Gain (Loss) [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Non-Qualifying Hedges Gain (Loss) | $ 1,028 | $ (239) |
Derivative Instruments (Open Cr
Derivative Instruments (Open Credit Default Swap Liabilities) (Details) - Credit Default Swap, Seller [Member] $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020USD ($)security | Dec. 31, 2019USD ($)security | Mar. 31, 2019USD ($) | |
Summary Of Credit Derivatives | |||
Maximum potential payout | $ 394 | $ 55 | |
BBB+ [Member] | |||
Summary Of Credit Derivatives | |||
Maturity | Jun. 20, 2025 | Dec. 20, 2024 | |
Credit rating of underlying obligation | BBB+ | BBB+ | |
Number of instruments | security | 4 | 1 | |
Fair value | $ (2) | $ 1 | |
Maximum potential payout | $ 394 | $ 55 |
Derivative Instruments (Collate
Derivative Instruments (Collateral Support Agreements) (Details) - Credit Default Swap, Seller [Member] - USD ($) $ in Millions | Mar. 31, 2020 | Mar. 31, 2019 |
Credit risk related contingent features collateral | ||
Maximum potential payout | $ 394 | $ 55 |
Maximum collateral potentially required to post | $ 394 | $ 55 |
Derivative Instruments (Schedul
Derivative Instruments (Schedule Of Collateral Amounts With Rights To Reclaim Or Obligation To Return Cash) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Credit Derivatives [Line Items] | ||
Collateral Posted by Counter-Party (Held by LNC) | $ 3,942 | $ 1,387 |
Collateral Posted by LNC (Held by Counter-Party) | (1,489) | (557) |
AA- [Member] | ||
Credit Derivatives [Line Items] | ||
Collateral Posted by Counter-Party (Held by LNC) | 521 | 441 |
Collateral Posted by LNC (Held by Counter-Party) | (599) | (167) |
A+ [Member] | ||
Credit Derivatives [Line Items] | ||
Collateral Posted by Counter-Party (Held by LNC) | 2,674 | 555 |
Collateral Posted by LNC (Held by Counter-Party) | (493) | (339) |
A [Member] | ||
Credit Derivatives [Line Items] | ||
Collateral Posted by Counter-Party (Held by LNC) | 35 | 36 |
Collateral Posted by LNC (Held by Counter-Party) | ||
A- [Member] | ||
Credit Derivatives [Line Items] | ||
Collateral Posted by Counter-Party (Held by LNC) | 712 | 355 |
Collateral Posted by LNC (Held by Counter-Party) | (397) | (51) |
BBB+ [Member] | ||
Credit Derivatives [Line Items] | ||
Collateral Posted by Counter-Party (Held by LNC) | ||
Collateral Posted by LNC (Held by Counter-Party) |
Derivative Instruments (Sched_2
Derivative Instruments (Schedule Of Offsetting Assets And Liabilities) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Financial Assets | ||
Derivative Instruments, Gross amount of recognized assets | $ 5,634 | $ 2,619 |
Derivative Instruments, Gross amounts offset | (1,217) | (708) |
Derivative Instruments, Net amount of assets | 4,417 | 1,911 |
Derivative Instruments, Cash collateral | (3,942) | (1,387) |
Derivative Instruments, Non-cash collateral | (151) | (242) |
Derivative Instruments, Net amount | 324 | 282 |
Embedded Derivative Instruments, Gross amount of recognized assets | 1,664 | 1,437 |
Embedded Derivative Instruments, Gross amounts offset | ||
Embedded Derivative Instruments, Net amount of assets | 1,664 | 1,437 |
Embedded Derivative Instruments, Cash collateral | ||
Embedded Derivative Instruments, Non-cash collateral | ||
Embedded Derivative Instruments, Net amount | 1,664 | 1,437 |
Total, Gross amount of recognized assets | 7,298 | 4,056 |
Total, Gross amounts offset | (1,217) | (708) |
Total, Net amount of assets | 6,081 | 3,348 |
Total, Cash collateral | (3,942) | (1,387) |
Total, Non-cash collateral | (151) | (242) |
Total, Net amount | 1,988 | 1,719 |
Financial Liabilities | ||
Derivative Instruments, Gross amount of recognized liabilities | 1,688 | 1,005 |
Derivative Instruments, Gross amounts offset | (25) | (138) |
Derivative Instruments, Net amount of liabilities | 1,663 | 867 |
Derivative Instruments, Cash collateral | (1,489) | (557) |
Derivative Instruments, Non-cash collateral | ||
Derivative Instruments, Net amount | 174 | 310 |
Embedded Derivative Instruments, Gross amount of recognized liabilities | 5,976 | 2,921 |
Embedded Derivative Instruments, Gross amounts offset | ||
Embedded Derivative Instruments, Net amount of liabilities | 5,976 | 2,921 |
Embedded Derivative Instruments, Cash collateral | ||
Embedded Derivative Instruments, Non-cash collateral | ||
Embedded Derivative Instruments, Net amount | 5,976 | 2,921 |
Total, Gross amount of recognized liabilities | 7,664 | 3,926 |
Total, Gross amounts offset | (25) | (138) |
Total, Net amount of liabilities | 7,639 | 3,788 |
Total, Cash collateral | (1,489) | (557) |
Total, Net amount | $ 6,150 | $ 3,231 |
Federal Income Taxes (Narrative
Federal Income Taxes (Narrative) (Details) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Federal Income Taxes [Abstract] | ||
Effective tax rate | (53.00%) | 6.00% |
Federal rate | 21.00% | 21.00% |
Reinsurance (Narrative) (Detail
Reinsurance (Narrative) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Ceded Credit Risk [Line Items] | |||||
Reinsurance ACL and deposit assets | $ 192 | ||||
Trading securities | $ 4,019 | $ 4,673 | |||
Fixed maturity AFS securities | 102,606 | 105,200 | |||
Mortgage loans on real estate | 16,791 | 16,339 | |||
Derivative investments | 4,417 | 1,911 | |||
Other investments | 4,765 | 2,994 | |||
Cash and invested cash | 6,202 | 2,563 | $ 1,593 | $ 2,345 | |
Accrued investment income | 1,185 | 1,148 | |||
Equity securities | 83 | 103 | |||
Athene Holding Ltd. [Member] | |||||
Ceded Credit Risk [Line Items] | |||||
Deposit assets | 6,300 | $ 6,600 | |||
Reserves associated with modified coinsurance reinsurance arrangements | 6,200 | ||||
Letter of credit | 188 | ||||
Trading securities | 3,000 | ||||
Fixed maturity AFS securities | 1,800 | ||||
Derivative investments | 49 | ||||
Other investments | 111 | ||||
Cash and invested cash | 378 | ||||
Accrued investment income | 48 | ||||
Equity securities | 14 | ||||
Athene Holding Ltd. [Member] | Over-Collateralization [Member] | |||||
Ceded Credit Risk [Line Items] | |||||
Reserves associated with modified coinsurance reinsurance arrangements | 175 | ||||
Athene Holding Ltd. [Member] | Commercial Mortgage Loans [Member] | |||||
Ceded Credit Risk [Line Items] | |||||
Mortgage loans on real estate | $ 765 |
Guaranteed Benefit Features (Na
Guaranteed Benefit Features (Narrative) (Details) | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Guaranteed Benefit Features [Abstract] | |||
Percent of permanent life insurance in force | 37.00% | 37.00% | |
Percent of permanent life insurance sales | 29.00% | 29.00% |
Guaranteed Benefit Features (In
Guaranteed Benefit Features (Information On Guaranteed Death Benefit Features) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Return of Net Deposits [Member] | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Total account value | $ 88,627 | $ 101,601 |
Net amount at risk | $ 1,563 | $ 71 |
Average attained age of contract holders | 65 years | 65 years |
Minimum Return [Member] | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Total account value | $ 76 | $ 92 |
Net amount at risk | $ 17 | $ 13 |
Average attained age of contract holders | 78 years | 77 years |
Guaranteed minimum return | 5.00% | 5.00% |
Anniversary Contract Value [Member] | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Total account value | $ 21,713 | $ 25,763 |
Net amount at risk | $ 2,401 | $ 384 |
Average attained age of contract holders | 72 years | 71 years |
Guaranteed Benefit Features (Su
Guaranteed Benefit Features (Summary Of Guaranteed Death Benefit Liabilities) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Guaranteed Benefit Features [Abstract] | ||
Balance as of beginning-of-year | $ 117 | $ 161 |
Changes in reserves | 106 | (36) |
Benefits paid | (8) | (6) |
Balance as of end-of-period | $ 215 | $ 119 |
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 | Mar. 31, 2020 | Dec. 31, 2019 |
Account Balances Of Variable Annuity Contracts With Guarantees Invested In Separate Accounts [Line Items] | ||
Total | $ 106,974 | $ 125,350 |
Percent of total variable annuity separate account values | 98.00% | 98.00% |
Domestic Equity [Member] | ||
Account Balances Of Variable Annuity Contracts With Guarantees Invested In Separate Accounts [Line Items] | ||
Total | $ 52,454 | $ 64,093 |
International Equity [Member] | ||
Account Balances Of Variable Annuity Contracts With Guarantees Invested In Separate Accounts [Line Items] | ||
Total | 15,998 | 19,852 |
Fixed Income [Member] | ||
Account Balances Of Variable Annuity Contracts With Guarantees Invested In Separate Accounts [Line Items] | ||
Total | $ 38,522 | $ 41,405 |
Liability For Unpaid Claims (Ch
Liability For Unpaid Claims (Changes In Liability For Unpaid Claims) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Liability For Unpaid Claims [Abstract] | ||
Balance as of beginning-of-year | $ 5,552 | $ 5,335 |
Reinsurance recoverable | 152 | 143 |
Net balance as of beginning-of-year | 5,400 | 5,192 |
Incurred related to: | ||
Current year | 885 | 803 |
Interest | 43 | 41 |
All other incurred | (65) | (85) |
Total incurred | 863 | 759 |
Paid related to: | ||
Current year | (240) | (215) |
Prior years | (518) | (482) |
Total paid | (758) | (697) |
Net balance as of end-of-year | 5,505 | 5,254 |
Reinsurance recoverable | 150 | 143 |
Balance as of end-of-year | $ 5,655 | $ 5,397 |
Debt (Schedule Of Changes In De
Debt (Schedule Of Changes In Debt) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Debt Instrument [Line Items] | |
Balance as of beginning-of-year | $ 6,367 |
Notes issued | 499 |
Repayment of notes | (300) |
Unamortized adjustments from discontinued hedges | 263 |
Fair value hedge on interest rate swap agreement | (82) |
Balance as of end-of-period | 6,748 |
LIBOR + 150 bps Term Loan Issued, Due 2022 [Member] | |
Debt Instrument [Line Items] | |
Notes issued | $ 500 |
LIBOR + 150 bps Term Loan Issued, Due 2022 [Member] | London Interbank Offered Rate (LIBOR) [Member] | |
Debt Instrument [Line Items] | |
Variable rate | 1.50% |
6.25% Senior Notes, Due 2020 [Member] | |
Debt Instrument [Line Items] | |
Repayment of notes | $ (300) |
Interest rate | 6.25% |
Contingencies And Commitments (
Contingencies And Commitments (Narrative) (Details) $ in Millions | Mar. 31, 2020USD ($) |
Pending Litigation [Member] | |
Loss Contingencies [Line Items] | |
Loss contingency, estimate | $ 90 |
Shares and Stockholders' Equi_3
Shares and Stockholders' Equity (Narrative) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Shares and Stockholders' Equity [Abstract] | |
Deferred compensation plan mark to market adjustment | $ 23 |
Shares and Stockholders' Equi_4
Shares and Stockholders' Equity (Changes In Common stock (Number Of Shares)) (Details) - shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Changes In Common Stock (Number Of Shares) [Line Items] | ||
Balance as of beginning-of-year | 196,668,532 | |
Balance as of end-of-period | 193,208,244 | |
Common stock as of End-of-Period | ||
Basic basis | 193,208,244 | 202,987,229 |
Diluted basis | 195,027,909 | 204,200,031 |
Common Stock [Member] | ||
Changes In Common Stock (Number Of Shares) [Line Items] | ||
Balance as of beginning-of-year | 196,668,532 | 205,862,760 |
Stock issued for exercise of warrants | 203,530 | |
Stock compensation/issued for benefit plans | 349,636 | 809,670 |
Retirement/cancellation of shares | (3,809,924) | (3,888,731) |
Balance as of end-of-period | 193,208,244 | 202,987,229 |
Shares And Stockholders' Equi_5
Shares And Stockholders' Equity (Reconciliation Of The Denominator Calculations Of Basic And Diluted EPS) (Details) - shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
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 | 195,076,797 | 204,290,759 |
Shares to cover exercise of outstanding warrants | 173,837 | |
Shares to cover non-vested stock | 853,597 | 1,049,556 |
Average stock options outstanding during the period | 996,248 | 1,519,184 |
Assumed acquisition of shares with assumed proceeds from exercising outstanding warrants | (29,176) | |
Assumed acquisition of shares with assumed proceeds and benefits from exercising stock options (at average market price for the period) | (703,600) | (1,041,630) |
Shares repurchasable from measured but unrecognized stock option expense | (867) | |
Average deferred compensation shares | 1,041,800 | |
Weighted-average shares, as used in diluted calculation | 197,264,842 | 205,961,663 |
Shares And Stockholders' Equi_6
Shares And Stockholders' Equity (Components And Changes In Accumulated OCI) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance as of beginning-of-year | $ 5,673 | ||
Less: | |||
Balance as of end-of-period | 3,004 | ||
Unrealized Gain (Loss) on AFS Securities [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance as of beginning-of-year | 5,983 | $ 557 | |
Cumulative effect from adoption of new accounting standards | $ 45 | ||
Unrealized holding gains (losses) arising during the period | (4,498) | 3,556 | |
Change in foreign currency exchange rate adjustment | (150) | 14 | |
Change in DAC, VOBA, DSI, future contract benefits and other contract holder funds | 1,264 | (928) | |
Income tax benefit (expense) | 720 | (563) | |
Less: | |||
Reclassification adjustment for gains (losses) included in net income (loss) | (2) | (15) | |
Associated amortization of DAC, VOBA, DSI, and DFEL | 32 | (1) | |
Income tax benefit (expense) | (6) | 3 | |
Less: | |||
Balance as of end-of-period | 3,340 | 2,649 | |
Unrealized OTTI on AFS Securities [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance as of beginning-of-year | 45 | 33 | |
Cumulative effect from adoption of new accounting standards | $ (45) | ||
(Increases) attributable to: | |||
Gross OTTI recognized in OCI during the period | (16) | ||
Change in DAC, VOBA, DSI and DFEL | 1 | ||
Income tax benefit (expense) | 4 | ||
Decreases attributable to | |||
Changes in fair value, sales, maturities or other settlements of AFS securities | 6 | ||
Change in DAC, VOBA, DSI, and DFEL | (2) | ||
Income tax benefit (expense) | (1) | ||
Less: | |||
Balance as of end-of-period | 25 | ||
Unrealized Gain (Loss) on Derivative Instruments [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance as of beginning-of-year | (11) | 139 | |
Unrealized holding gains (losses) arising during the period | (71) | (36) | |
Change in foreign currency exchange rate adjustment | 153 | (14) | |
Decreases attributable to | |||
Change in DAC, VOBA, DSI and DFEL | (53) | 6 | |
Income tax benefit (expense) | (8) | 10 | |
Less: | |||
Reclassification adjustment for gains (losses) included in net income (loss) | 9 | 8 | |
Associated amortization of DAC, VOBA, DSI and DFEL | (6) | (1) | |
Income tax benefit (expense) | (1) | (1) | |
Balance as of end-of-period | 8 | 99 | |
Foreign Currency Translation Adjustment [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance as of beginning-of-year | (17) | (23) | |
Change in foreign currency exchange rate adjustment | (10) | 3 | |
Less: | |||
Balance as of end-of-period | (27) | (20) | |
Funded Status of Employee Benefit Plans [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance as of beginning-of-year | (327) | (299) | |
Less: | |||
Adjustment arising during the period | 10 | (1) | |
Balance as of end-of-period | $ (317) | $ (300) |
Shares And Stockholders' Equi_7
Shares And Stockholders' Equity (Schedule of Reclassifications Out Of AOCI) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Total realized gain (loss) | $ (24) | $ (362) |
Net investment income | 1,375 | 1,251 |
Interest and debt expense | (68) | (71) |
Commissions and other expenses | (1,085) | (1,176) |
Unrealized Gain (Loss) on AFS Securities [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Total realized gain (loss) | (2) | (15) |
Reclassifications before income tax benefit (expense) | 30 | (16) |
Income tax benefit (expense) | (6) | 3 |
Reclassifications, net of income tax | 24 | (13) |
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) | 32 | (1) |
Unrealized Gain (Loss) on Derivative Instruments [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Nonoperating income expense | 9 | 8 |
Reclassifications before income tax benefit (expense) | 3 | 7 |
Income tax benefit (expense) | (1) | (1) |
Reclassifications, net of income tax | 2 | 6 |
Unrealized Gain (Loss) on Derivative Instruments [Member] | Interest Rate Contracts [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net investment income | 1 | |
Interest and debt expense | (3) | (1) |
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) | 1 | 1 |
Net investment income | 11 | 7 |
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 | $ (6) | $ (1) |
Realized Gain (Loss) (Schedule
Realized Gain (Loss) (Schedule Of Realized Gain (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Realized gain (loss) related to certain investments | ||
Credit loss expense, net | $ (20) | |
Gain (loss) on equity securities | (19) | $ 6 |
Credit loss expense on mortgage loans on real estate | (70) | |
Other gain (loss) on investments | (1) | (1) |
Associated amortization of DAC, VOBA, DSI and DFEL and changes in other contract holder funds | 26 | (2) |
Total realized gain (loss) related to certain financial assets | (86) | (20) |
Realized gain (loss) on the mark-to-market on certain instruments | 47 | (121) |
Indexed annuity and IUL contracts net derivatives results: | ||
Gross gain (loss) | (49) | (35) |
Associated amortization of DAC, VOBA, DSI, and DFEL | 15 | 1 |
Variable annuity net derivatives results: | ||
Gross gain (loss) | 40 | (215) |
Associated amortization of DAC, VOBA, DSI, and DFEL | 9 | 28 |
Total realized gain (loss) | (24) | (362) |
Mortgage Loans On Real Estate [Member] | ||
Realized gain (loss) related to certain investments | ||
Realized gain (loss) on the mark-to-market on certain instruments | 7 | |
Fixed Maturity AFS Securities [Member] | ||
Realized gain (loss) related to certain investments | ||
AFS securities. Gross gains | 6 | 12 |
AFS securities. Gross losses | (8) | (27) |
AFS securities. Gross OTTI | (8) | |
Equity Securities [Member] | ||
Realized gain (loss) related to certain investments | ||
Gain (loss) on equity securities | $ (18) | $ 6 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Narrative) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | $ 251,606 | $ 270,478 |
Liabilities measured at fair value | 8,431 | 4,306 |
Fair Value, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | 0 | 0 |
Liabilities measured at fair value | $ 0 | $ 0 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments (Carrying and Estimated Fair Values of Financial Instruments) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Assets | ||
Fixed maturity AFS securities | $ 102,606 | $ 105,200 |
Trading securities | 4,019 | 4,673 |
Equity securities | 83 | 103 |
Mortgage loans on real estate | 16,791 | 16,339 |
Derivative investments | 4,417 | 1,911 |
Other investments | 4,765 | 2,994 |
Reinsurance related embedded derivatives | 137 | |
Carrying Value [Member] | ||
Assets | ||
Trading securities | 4,019 | 4,673 |
Equity securities | 83 | 103 |
Mortgage loans on real estate | 16,791 | 16,339 |
Derivative investments | 4,417 | 1,911 |
Other investments | 4,755 | 2,983 |
Cash and invested cash | 6,202 | 2,563 |
Reinsurance related embedded derivatives | 137 | |
Separate account assets | 130,617 | 153,566 |
Future contract benefits: | ||
Indexed annuity and IUL contracts embedded derivatives | (1,380) | (2,585) |
Other contract holder funds: | ||
Remaining guaranteed interest and similar contracts | (1,884) | (1,900) |
Account values of certain investment contracts | (39,744) | (38,639) |
Short-term debt | (300) | |
Long-term debt | (6,748) | (6,067) |
Reinsurance related embedded derivatives | (327) | |
Fair Value [Member] | ||
Assets | ||
Trading securities | 4,019 | 4,673 |
Equity securities | 83 | 103 |
Mortgage loans on real estate | 18,556 | 16,872 |
Derivative investments | 4,417 | 1,911 |
Other investments | 4,755 | 2,983 |
Cash and invested cash | 6,202 | 2,563 |
Reinsurance related embedded derivatives | 137 | |
Separate account assets | 130,617 | 153,566 |
Future contract benefits: | ||
Indexed annuity and IUL contracts embedded derivatives | (1,380) | (2,585) |
Other contract holder funds: | ||
Remaining guaranteed interest and similar contracts | (1,884) | (1,900) |
Account values of certain investment contracts | (54,761) | (46,822) |
Short-term debt | (304) | |
Long-term debt | (5,770) | (6,217) |
Reinsurance related embedded derivatives | (327) | |
Fixed Maturity AFS Securities [Member] | Carrying Value [Member] | ||
Assets | ||
Fixed maturity AFS securities | 102,606 | 105,200 |
Fixed Maturity AFS Securities [Member] | Fair Value [Member] | ||
Assets | ||
Fixed maturity AFS securities | 102,606 | 105,200 |
Other Assets [Member] | Carrying Value [Member] | ||
Assets | ||
Indexed annuity ceded embedded derivatives | 799 | 927 |
Other Assets [Member] | Fair Value [Member] | ||
Assets | ||
Indexed annuity ceded embedded derivatives | 799 | 927 |
Other Assets [Member] | GLB Direct Embedded Derivatives [Member] | Carrying Value [Member] | ||
Assets | ||
Other assets - GLB embedded derivatives | 450 | |
Other Assets [Member] | GLB Direct Embedded Derivatives [Member] | Fair Value [Member] | ||
Assets | ||
Other assets - GLB embedded derivatives | 450 | |
Other Assets [Member] | GLB Ceded Embedded Derivatives [Member] | Carrying Value [Member] | ||
Assets | ||
Other assets - GLB embedded derivatives | 728 | 60 |
Other Assets [Member] | GLB Ceded Embedded Derivatives [Member] | Fair Value [Member] | ||
Assets | ||
Other assets - GLB embedded derivatives | 728 | 60 |
Other Liabilities [Member] | Carrying Value [Member] | ||
Other contract holder funds: | ||
Other liabilities - derivative liabilities | (1,212) | (349) |
Other Liabilities [Member] | Fair Value [Member] | ||
Other contract holder funds: | ||
Other liabilities - derivative liabilities | (1,212) | (349) |
Other Liabilities [Member] | GLB Direct Embedded Derivatives [Member] | Carrying Value [Member] | ||
Other contract holder funds: | ||
Other liabilities - GLB embedded derivatives | (4,596) | |
Other Liabilities [Member] | GLB Direct Embedded Derivatives [Member] | Fair Value [Member] | ||
Other contract holder funds: | ||
Other liabilities - GLB embedded derivatives | $ (4,596) | |
Other Liabilities [Member] | GLB Ceded Embedded Derivatives [Member] | Carrying Value [Member] | ||
Other contract holder funds: | ||
Other liabilities - GLB embedded derivatives | (9) | |
Other Liabilities [Member] | GLB Ceded Embedded Derivatives [Member] | Fair Value [Member] | ||
Other contract holder funds: | ||
Other liabilities - GLB embedded derivatives | $ (9) |
Fair Value Of Financial Instr_5
Fair Value Of Financial Instruments (Schedule of Mortgage Loans With Election Of Fair Value Option) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value as of end-of-period | $ 765 | $ 0 |
Commercial [Member] | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value as of end-of-period | 765 | |
Aggregate contractual principal as of end-of-period | 742 | |
Loans with fair value option in non-accrual | $ 0 |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments (Fair Value of Assets and Liabilities on a Recurring Basis) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | $ 251,606 | $ 270,478 |
Liabilities measured at fair value | (8,431) | (4,306) |
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 | 1,138 | 1,215 |
Significant Observable Inputs (Level 2) [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 240,582 | 260,661 |
Liabilities measured at fair value | (1,269) | (845) |
Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 9,886 | 8,602 |
Liabilities measured at fair value | (7,162) | (3,461) |
Corporate Bonds [Member] | Fixed Maturity AFS Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 85,797 | 88,716 |
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 | 81,694 | 84,435 |
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 | 4,103 | 4,281 |
ABS [Member] | Fixed Maturity AFS Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 5,086 | 4,889 |
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 | 4,890 | 4,621 |
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 | 196 | 268 |
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 | 482 | 435 |
U.S. Government Bonds [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fixed Maturity AFS Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 470 | 424 |
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 | 7 | 6 |
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 | 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 | 389 | 393 |
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 | 302 | 303 |
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 | 87 | 90 |
RMBS [Member] | Fixed Maturity AFS Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 3,271 | 3,241 |
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 | 3,270 | 3,230 |
RMBS [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fixed Maturity AFS Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 1 | 11 |
CMBS [Member] | Fixed Maturity AFS Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 1,119 | 1,083 |
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 | 1,118 | 1,082 |
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 | 1 | 1 |
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 | 5,906 | 5,884 |
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 | 5,906 | 5,884 |
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 | 556 | 559 |
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 | 68 | 77 |
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 | 416 | 404 |
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 | 72 | 78 |
Mortgage Loans On Real Estate [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 765 | |
Mortgage Loans On Real Estate [Member] | Significant Observable Inputs (Level 2) [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 765 | |
Trading Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 4,019 | 4,673 |
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 | 49 | 50 |
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 | 3,319 | 3,957 |
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 | 651 | 666 |
Equity Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 83 | 103 |
Equity Securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 12 | 25 |
Equity Securities [Member] | Significant Observable Inputs (Level 2) [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 41 | 48 |
Equity Securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 30 | 30 |
Derivative Investments [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 5,660 | 2,947 |
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 | 2,447 | 1,212 |
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 | 3,213 | 1,735 |
Cash And Invested Cash [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 6,202 | 2,563 |
Cash And 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 | 6,202 | 2,563 |
Reinsurance Related Embedded Derivatives [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 137 | |
Liabilities measured at fair value | (327) | |
Reinsurance Related Embedded Derivatives [Member] | Significant Observable Inputs (Level 2) [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 137 | |
Liabilities measured at fair value | (327) | |
GLB Direct Embedded Derivatives [Member] | Other Assets [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 450 | |
GLB Direct Embedded Derivatives [Member] | Other Liabilities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Liabilities measured at fair value | (4,596) | |
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 | 450 | |
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 | (4,596) | |
GLB Ceded Embedded Derivatives [Member] | Other Assets [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 728 | 60 |
GLB Ceded Embedded Derivatives [Member] | Other Liabilities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Liabilities measured at fair value | (9) | |
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 | 728 | 60 |
GLB Ceded 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 | (9) | |
Indexed Annuity And IUL Contracts [Member] | Other Assets [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 799 | 927 |
Indexed Annuity And IUL Contracts [Member] | Future Contract Benefits [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Liabilities measured at fair value | (1,380) | (2,585) |
Indexed Annuity And IUL Contracts [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 | 799 | 927 |
Indexed Annuity And IUL Contracts [Member] | Significant Unobservable Inputs (Level 3) [Member] | Future Contract Benefits [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Liabilities measured at fair value | (1,380) | (2,585) |
Separate Account Assets [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 130,607 | 153,555 |
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 | 539 | 639 |
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 | 130,068 | 152,916 |
Derivative Liabilities [Member] | Other Liabilities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Liabilities measured at fair value | (2,455) | (1,385) |
Derivative 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 | (1,269) | (518) |
Derivative 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 | $ (1,186) | $ (867) |
Fair Value of Financial Instr_7
Fair Value of Financial Instruments (Fair Value Measured On A Recurring Basis Reconciliation) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Level 3 Unobservable Input Reconciliation | ||
Beginning Fair Value | $ 5,141 | $ 4,014 |
Items Included in Net Income | (2,376) | (337) |
Gains (Losses) in OCI and Other | (119) | 120 |
Issuances, Sales, Maturities, Settlements, Calls, Net | 113 | 409 |
Transfers Into or Out of Level 3, Net | (35) | (166) |
Ending Fair Value | 2,724 | 4,040 |
Corporate Bonds [Member] | Fixed Maturity AFS Securities [Member] | ||
Level 3 Unobservable Input Reconciliation | ||
Beginning Fair Value | 4,281 | 3,269 |
Items Included in Net Income | (1) | |
Gains (Losses) in OCI and Other | (385) | 70 |
Issuances, Sales, Maturities, Settlements, Calls, Net | 165 | 200 |
Transfers Into or Out of Level 3, Net | 42 | (17) |
Ending Fair Value | 4,103 | 3,521 |
ABS [Member] | Fixed Maturity AFS Securities [Member] | ||
Level 3 Unobservable Input Reconciliation | ||
Beginning Fair Value | 268 | 134 |
Items Included in Net Income | ||
Gains (Losses) in OCI and Other | (4) | |
Issuances, Sales, Maturities, Settlements, Calls, Net | 22 | 149 |
Transfers Into or Out of Level 3, Net | (90) | (105) |
Ending Fair Value | 196 | 178 |
U.S. Government Bonds [Member] | Fixed Maturity AFS Securities [Member] | ||
Level 3 Unobservable Input Reconciliation | ||
Beginning Fair Value | 5 | |
Items Included in Net Income | ||
Gains (Losses) in OCI and Other | ||
Issuances, Sales, Maturities, Settlements, Calls, Net | ||
Transfers Into or Out of Level 3, Net | ||
Ending Fair Value | 5 | |
Foreign Government Bonds [Member] | Fixed Maturity AFS Securities [Member] | ||
Level 3 Unobservable Input Reconciliation | ||
Beginning Fair Value | 90 | 109 |
Items Included in Net Income | ||
Gains (Losses) in OCI and Other | (3) | 1 |
Issuances, Sales, Maturities, Settlements, Calls, Net | ||
Transfers Into or Out of Level 3, Net | ||
Ending Fair Value | 87 | 110 |
RMBS [Member] | Fixed Maturity AFS Securities [Member] | ||
Level 3 Unobservable Input Reconciliation | ||
Beginning Fair Value | 11 | 7 |
Items Included in Net Income | ||
Gains (Losses) in OCI and Other | ||
Issuances, Sales, Maturities, Settlements, Calls, Net | ||
Transfers Into or Out of Level 3, Net | (10) | (7) |
Ending Fair Value | 1 | |
CMBS [Member] | Fixed Maturity AFS Securities [Member] | ||
Level 3 Unobservable Input Reconciliation | ||
Beginning Fair Value | 1 | 2 |
Items Included in Net Income | ||
Gains (Losses) in OCI and Other | ||
Issuances, Sales, Maturities, Settlements, Calls, Net | ||
Transfers Into or Out of Level 3, Net | ||
Ending Fair Value | 1 | 2 |
Hybrid And Redeemable Preferred Securities [Member] | Fixed Maturity AFS Securities [Member] | ||
Level 3 Unobservable Input Reconciliation | ||
Beginning Fair Value | 78 | 75 |
Items Included in Net Income | ||
Gains (Losses) in OCI and Other | (6) | 3 |
Issuances, Sales, Maturities, Settlements, Calls, Net | ||
Transfers Into or Out of Level 3, Net | ||
Ending Fair Value | 72 | 78 |
Trading Securities [Member] | ||
Level 3 Unobservable Input Reconciliation | ||
Beginning Fair Value | 666 | 67 |
Items Included in Net Income | (32) | |
Gains (Losses) in OCI and Other | ||
Issuances, Sales, Maturities, Settlements, Calls, Net | (6) | 206 |
Transfers Into or Out of Level 3, Net | 23 | (37) |
Ending Fair Value | 651 | 236 |
Equity Securities [Member] | ||
Level 3 Unobservable Input Reconciliation | ||
Beginning Fair Value | 30 | 25 |
Items Included in Net Income | ||
Gains (Losses) in OCI and Other | ||
Issuances, Sales, Maturities, Settlements, Calls, Net | ||
Transfers Into or Out of Level 3, Net | ||
Ending Fair Value | 30 | 25 |
Derivative Investments [Member] | ||
Level 3 Unobservable Input Reconciliation | ||
Beginning Fair Value | 868 | 534 |
Items Included in Net Income | 997 | (383) |
Gains (Losses) in OCI and Other | 279 | 46 |
Issuances, Sales, Maturities, Settlements, Calls, Net | (117) | 70 |
Transfers Into or Out of Level 3, Net | ||
Ending Fair Value | 2,027 | 267 |
GLB Direct Embedded Derivatives [Member] | Other Assets [Member] | ||
Level 3 Unobservable Input Reconciliation | ||
Beginning Fair Value | 450 | 123 |
Items Included in Net Income | (450) | 316 |
Gains (Losses) in OCI and Other | ||
Issuances, Sales, Maturities, Settlements, Calls, Net | ||
Transfers Into or Out of Level 3, Net | ||
Ending Fair Value | 439 | |
GLB Direct Embedded Derivatives [Member] | Other Liabilities [Member] | ||
Level 3 Unobservable Input Reconciliation | ||
Items Included in Net Income | (4,596) | |
Gains (Losses) in OCI and Other | ||
Issuances, Sales, Maturities, Settlements, Calls, Net | ||
Transfers Into or Out of Level 3, Net | ||
Ending Fair Value | (4,596) | |
GLB Ceded Embedded Derivatives [Member] | Other Assets [Member] | ||
Level 3 Unobservable Input Reconciliation | ||
Beginning Fair Value | 60 | 72 |
Items Included in Net Income | 668 | (22) |
Gains (Losses) in OCI and Other | ||
Issuances, Sales, Maturities, Settlements, Calls, Net | ||
Transfers Into or Out of Level 3, Net | ||
Ending Fair Value | 728 | 50 |
GLB Ceded Embedded Derivatives [Member] | Other Liabilities [Member] | ||
Level 3 Unobservable Input Reconciliation | ||
Beginning Fair Value | (9) | |
Items Included in Net Income | 9 | (8) |
Gains (Losses) in OCI and Other | ||
Issuances, Sales, Maturities, Settlements, Calls, Net | ||
Transfers Into or Out of Level 3, Net | ||
Ending Fair Value | (8) | |
Indexed Annuity Ceded Embedded Derivatives [Member] | Other Assets [Member] | ||
Level 3 Unobservable Input Reconciliation | ||
Beginning Fair Value | 927 | 902 |
Items Included in Net Income | (115) | 77 |
Gains (Losses) in OCI and Other | ||
Issuances, Sales, Maturities, Settlements, Calls, Net | (13) | (107) |
Transfers Into or Out of Level 3, Net | ||
Ending Fair Value | 799 | 872 |
Indexed Annuity And IUL Contracts [Member] | Future Contract Benefits [Member] | ||
Level 3 Unobservable Input Reconciliation | ||
Beginning Fair Value | (2,585) | (1,305) |
Items Included in Net Income | 1,143 | (316) |
Gains (Losses) in OCI and Other | ||
Issuances, Sales, Maturities, Settlements, Calls, Net | 62 | (109) |
Transfers Into or Out of Level 3, Net | ||
Ending Fair Value | $ (1,380) | $ (1,730) |
Fair Value of Financial Instr_8
Fair Value of Financial Instruments (Schedule Of Investment Holdings Movements) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | ||
Issuances | $ 548 | $ 625 |
Sales | (221) | (17) |
Maturities | (110) | (53) |
Settlements | (55) | (139) |
Calls | (49) | (7) |
Total | 113 | 409 |
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 | 336 | 267 |
Sales | (73) | (2) |
Maturities | 2 | (7) |
Settlements | (51) | (51) |
Calls | (49) | (7) |
Total | 165 | 200 |
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 | 37 | 149 |
Settlements | (15) | |
Total | 22 | 149 |
Trading Securities [Member] | ||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | ||
Issuances | 37 | 207 |
Sales | (25) | |
Settlements | (18) | (1) |
Total | (6) | 206 |
Derivative Investments [Member] | ||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | ||
Issuances | 118 | 131 |
Sales | (123) | (15) |
Maturities | (112) | (46) |
Total | (117) | 70 |
Indexed Annuity Ceded Embedded Derivatives [Member] | Other Assets [Member] | ||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | ||
Issuances | 9 | 19 |
Settlements | (22) | (126) |
Total | (13) | (107) |
Indexed Annuity And IUL Contracts [Member] | Future Contract Benefits [Member] | ||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | ||
Issuances | 11 | (148) |
Settlements | 51 | 39 |
Total | $ 62 | $ (109) |
Fair Value of Financial Instr_9
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 | |
Mar. 31, 2020 | Mar. 31, 2019 | |
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 | $ (4,033) | $ 162 |
GLB 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 | (4,867) | 481 |
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 | 895 | (287) |
Indexed Annuity And IUL Contracts [Member] | Realized Gain (Loss) [Member] | ||
Changes in unrealized gains (losses) within Level 3 financial instruments carried at fair value and still held | ||
Change in unrealized gains (losses) included in net income | $ (61) | $ (32) |
Fair Value of Financial Inst_10
Fair Value of Financial Instruments (Changes in Unrealized Gains (Losses) Included in OCI) (Details) - Fixed Maturity AFS Securities [Member] $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Fair Value Assets And Liabilities Measured On Recurring Basis Level 3 Activity [Line Items] | |
Unrealized gains (losses) included in OCI, net | $ (335) |
Corporate Bonds [Member] | |
Fair Value Assets And Liabilities Measured On Recurring Basis Level 3 Activity [Line Items] | |
Unrealized gains (losses) included in OCI, net | (325) |
Foreign Government Bonds [Member] | |
Fair Value Assets And Liabilities Measured On Recurring Basis Level 3 Activity [Line Items] | |
Unrealized gains (losses) included in OCI, net | (2) |
ABS [Member] | |
Fair Value Assets And Liabilities Measured On Recurring Basis Level 3 Activity [Line Items] | |
Unrealized gains (losses) included in OCI, net | (3) |
Hybrid And Redeemable Preferred Securities [Member] | |
Fair Value Assets And Liabilities Measured On Recurring Basis Level 3 Activity [Line Items] | |
Unrealized gains (losses) included in OCI, net | $ (5) |
Fair Value of Financial Inst_11
Fair Value of Financial Instruments (Components Of The Transfers In And Out Of Level 3) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | ||
Transfers Into Level 3 | $ 147 | $ 83 |
Transfers Out of Level 3 | (182) | (249) |
Transfers Into or Out of Level 3, Net | (35) | (166) |
Corporate Bonds [Member] | Fixed Maturity AFS Securities [Member] | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | ||
Transfers Into Level 3 | 119 | 83 |
Transfers Out of Level 3 | (77) | (100) |
Transfers Into or Out of Level 3, Net | 42 | (17) |
RMBS [Member] | Fixed Maturity AFS Securities [Member] | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | ||
Transfers Out of Level 3 | (10) | (7) |
Transfers Into or Out of Level 3, Net | (10) | (7) |
ABS [Member] | Fixed Maturity AFS Securities [Member] | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | ||
Transfers Into Level 3 | 5 | |
Transfers Out of Level 3 | (95) | (105) |
Transfers Into or Out of Level 3, Net | (90) | (105) |
Trading Securities [Member] | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | ||
Transfers Into Level 3 | 23 | |
Transfers Out of Level 3 | (37) | |
Transfers Into or Out of Level 3, Net | $ 23 | $ (37) |
Fair Value of Financial Inst_12
Fair Value of Financial Instruments (Fair Value Inputs Quantitative Information) (Details) $ in Millions | Mar. 31, 2020USD ($)item | Dec. 31, 2019USD ($) |
Assets Fair Value Disclosure [Abstract] | ||
Assets Fair Value Disclosure | $ | $ 251,606 | $ 270,478 |
Liabilities Fair Value Disclosure [Abstract] | ||
Liabilities measured at fair value | $ | (8,431) | (4,306) |
Significant Unobservable Inputs (Level 3) [Member] | ||
Assets Fair Value Disclosure [Abstract] | ||
Assets Fair Value Disclosure | $ | 9,886 | 8,602 |
Liabilities Fair Value Disclosure [Abstract] | ||
Liabilities measured at fair value | $ | (7,162) | $ (3,461) |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | ||
Assets Fair Value Disclosure [Abstract] | ||
Assets Fair Value Disclosure | $ | 799 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Future Contract Benefits [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Liabilities measured at fair value | $ | (1,380) | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Other Liabilities [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Liabilities measured at fair value | $ | (4,596) | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Fixed Maturity AFS Securities [Member] | Corporate Bonds [Member] | ||
Assets Fair Value Disclosure [Abstract] | ||
Assets Fair Value Disclosure | $ | 2,690 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Fixed Maturity AFS Securities [Member] | Foreign Government Bonds [Member] | ||
Assets Fair Value Disclosure [Abstract] | ||
Assets Fair Value Disclosure | $ | 47 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Fixed Maturity AFS Securities [Member] | ABS [Member] | ||
Assets Fair Value Disclosure [Abstract] | ||
Assets Fair Value Disclosure | $ | 20 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Fixed Maturity AFS Securities [Member] | Hybrid And Redeemable Preferred Securities [Member] | ||
Assets Fair Value Disclosure [Abstract] | ||
Assets Fair Value Disclosure | $ | $ 4 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Fixed Maturity AFS Securities [Member] | Minimum [Member] | Corporate Bonds [Member] | Liquidity/Duration Adjustment [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Fixed maturity AFS and trading securities, measurement input | 0.007 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Fixed Maturity AFS Securities [Member] | Minimum [Member] | Foreign Government Bonds [Member] | Liquidity/Duration Adjustment [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Fixed maturity AFS and trading securities, measurement input | 0.053 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Fixed Maturity AFS Securities [Member] | Minimum [Member] | ABS [Member] | Liquidity/Duration Adjustment [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Fixed maturity AFS and trading securities, measurement input | 0.060 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Fixed Maturity AFS Securities [Member] | Minimum [Member] | Hybrid And Redeemable Preferred Securities [Member] | Liquidity/Duration Adjustment [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Fixed maturity AFS and trading securities, measurement input | 0.030 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Fixed Maturity AFS Securities [Member] | Maximum [Member] | Corporate Bonds [Member] | Liquidity/Duration Adjustment [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Fixed maturity AFS and trading securities, measurement input | 0.188 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Fixed Maturity AFS Securities [Member] | Maximum [Member] | Foreign Government Bonds [Member] | Liquidity/Duration Adjustment [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Fixed maturity AFS and trading securities, measurement input | 0.080 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Fixed Maturity AFS Securities [Member] | Maximum [Member] | ABS [Member] | Liquidity/Duration Adjustment [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Fixed maturity AFS and trading securities, measurement input | 0.060 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Fixed Maturity AFS Securities [Member] | Maximum [Member] | Hybrid And Redeemable Preferred Securities [Member] | Liquidity/Duration Adjustment [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Fixed maturity AFS and trading securities, measurement input | 0.030 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Fixed Maturity AFS Securities [Member] | Weighted Average [Member] | Corporate Bonds [Member] | Liquidity/Duration Adjustment [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Fixed maturity AFS and trading securities, measurement input | 0.029 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Fixed Maturity AFS Securities [Member] | Weighted Average [Member] | Foreign Government Bonds [Member] | Liquidity/Duration Adjustment [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Fixed maturity AFS and trading securities, measurement input | 0.068 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Fixed Maturity AFS Securities [Member] | Weighted Average [Member] | ABS [Member] | Liquidity/Duration Adjustment [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Fixed maturity AFS and trading securities, measurement input | 0.060 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Fixed Maturity AFS Securities [Member] | Weighted Average [Member] | Hybrid And Redeemable Preferred Securities [Member] | Liquidity/Duration Adjustment [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Fixed maturity AFS and trading securities, measurement input | 0.030 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Equity Securities [Member] | Equity Securities [Member] | ||
Assets Fair Value Disclosure [Abstract] | ||
Assets Fair Value Disclosure | $ | $ 20 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Equity Securities [Member] | Minimum [Member] | Equity Securities [Member] | Liquidity/Duration Adjustment [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Equity securities, measurement input | 0.045 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Equity Securities [Member] | Maximum [Member] | Equity Securities [Member] | Liquidity/Duration Adjustment [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Equity securities, measurement input | 0.073 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Equity Securities [Member] | Weighted Average [Member] | Equity Securities [Member] | Liquidity/Duration Adjustment [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Equity securities, measurement input | 0.067 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | GLB Ceded Embedded Derivatives [Member] | Other Assets [Member] | ||
Assets Fair Value Disclosure [Abstract] | ||
Assets Fair Value Disclosure | $ | $ 728 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | GLB Ceded Embedded Derivatives [Member] | Minimum [Member] | Other Assets [Member] | Long-Term Lapse Rate [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative assets, measurement input | 0.01 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | GLB Ceded Embedded Derivatives [Member] | Minimum [Member] | Other Assets [Member] | Utilization Of Guaranteed Withdrawls [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative assets, measurement input | 0.85 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | GLB Ceded Embedded Derivatives [Member] | Minimum [Member] | Other Assets [Member] | Claims Utilization Factor [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative assets, measurement input | 0.60 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | GLB Ceded Embedded Derivatives [Member] | Minimum [Member] | Other Assets [Member] | Premiums Utilization Factor [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative assets, measurement input | 0.80 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | GLB Ceded Embedded Derivatives [Member] | Minimum [Member] | Other Assets [Member] | NPR [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative assets, measurement input | 0.0003 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | GLB Ceded Embedded Derivatives [Member] | Minimum [Member] | Other Assets [Member] | Volatility [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative assets, measurement input | 0.01 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | GLB Ceded Embedded Derivatives [Member] | Maximum [Member] | Other Assets [Member] | Long-Term Lapse Rate [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative assets, measurement input | 0.30 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | GLB Ceded Embedded Derivatives [Member] | Maximum [Member] | Other Assets [Member] | Utilization Of Guaranteed Withdrawls [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative assets, measurement input | 1 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | GLB Ceded Embedded Derivatives [Member] | Maximum [Member] | Other Assets [Member] | Claims Utilization Factor [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative assets, measurement input | 1 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | GLB Ceded Embedded Derivatives [Member] | Maximum [Member] | Other Assets [Member] | Premiums Utilization Factor [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative assets, measurement input | 1.15 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | GLB Ceded Embedded Derivatives [Member] | Maximum [Member] | Other Assets [Member] | NPR [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative assets, measurement input | 0.0035 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | GLB Ceded Embedded Derivatives [Member] | Maximum [Member] | Other Assets [Member] | Volatility [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative assets, measurement input | 0.28 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | GLB Ceded Embedded Derivatives [Member] | Weighted Average [Member] | Other Assets [Member] | Utilization Of Guaranteed Withdrawls [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative assets, measurement input | 0.94 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | GLB Ceded Embedded Derivatives [Member] | Weighted Average [Member] | Other Assets [Member] | NPR [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative assets, measurement input | 0.0027 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | GLB Ceded Embedded Derivatives [Member] | Weighted Average [Member] | Other Assets [Member] | Volatility [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative assets, measurement input | 0.1372 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Indexed Annuity And IUL Contracts [Member] | Minimum [Member] | Long-Term Lapse Rate [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative assets, measurement input | 0.01 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Indexed Annuity And IUL Contracts [Member] | Maximum [Member] | Long-Term Lapse Rate [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative assets, measurement input | 0.09 | |
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] | Future Contract Benefits [Member] | Long-Term Lapse Rate [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative liability, measurement input | 0.01 | |
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] | Future Contract Benefits [Member] | Long-Term Lapse Rate [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative liability, measurement input | 0.09 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | GLB Direct Embedded Derivatives [Member] | Minimum [Member] | Other Liabilities [Member] | Long-Term Lapse Rate [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative liability, measurement input | 0.01 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | GLB Direct Embedded Derivatives [Member] | Minimum [Member] | Other Liabilities [Member] | Utilization Of Guaranteed Withdrawls [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative liability, measurement input | 0.85 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | GLB Direct Embedded Derivatives [Member] | Minimum [Member] | Other Liabilities [Member] | Claims Utilization Factor [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative liability, measurement input | 0.60 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | GLB Direct Embedded Derivatives [Member] | Minimum [Member] | Other Liabilities [Member] | Premiums Utilization Factor [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative liability, measurement input | 0.80 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | GLB Direct Embedded Derivatives [Member] | Minimum [Member] | Other Liabilities [Member] | NPR [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative liability, measurement input | 0.0003 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | GLB Direct Embedded Derivatives [Member] | Minimum [Member] | Other Liabilities [Member] | Volatility [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative liability, measurement input | 0.01 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | GLB Direct Embedded Derivatives [Member] | Maximum [Member] | Long-Term Lapse Rate [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative liability, measurement input | 0.30 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | GLB Direct Embedded Derivatives [Member] | Maximum [Member] | Other Liabilities [Member] | Utilization Of Guaranteed Withdrawls [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative liability, measurement input | 1 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | GLB Direct Embedded Derivatives [Member] | Maximum [Member] | Other Liabilities [Member] | Claims Utilization Factor [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative liability, measurement input | 1 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | GLB Direct Embedded Derivatives [Member] | Maximum [Member] | Other Liabilities [Member] | Premiums Utilization Factor [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative liability, measurement input | 1.15 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | GLB Direct Embedded Derivatives [Member] | Maximum [Member] | Other Liabilities [Member] | NPR [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative liability, measurement input | 0.0035 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | GLB Direct Embedded Derivatives [Member] | Maximum [Member] | Other Liabilities [Member] | Volatility [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative liability, measurement input | 0.28 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | GLB Direct Embedded Derivatives [Member] | Weighted Average [Member] | Other Liabilities [Member] | Utilization Of Guaranteed Withdrawls [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative liability, measurement input | 0.94 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | GLB Direct Embedded Derivatives [Member] | Weighted Average [Member] | Other Liabilities [Member] | NPR [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative liability, measurement input | 0.0027 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | GLB Direct Embedded Derivatives [Member] | Weighted Average [Member] | Other Liabilities [Member] | Volatility [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative liability, measurement input | 0.1372 |
Segment Information (Reconcilia
Segment Information (Reconciliation Of Revenue From Segments To Consolidated) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Segment Reporting Information [Line Items] | ||
Total revenues | $ 4,425 | $ 3,965 |
Annuities Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 1,129 | 1,174 |
Retirement Plan Services Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 297 | 293 |
Life Insurance Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 1,821 | 1,700 |
Group Protection Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 1,224 | 1,138 |
Other Operations [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 38 | 57 |
Segment Reconciling Items [Member] | ||
Segment Reporting Information [Line Items] | ||
Excluded realized gain (loss), pre-tax | (75) | (400) |
Amortization of DFEL associated with benefit ratio unlocking, pre-tax | $ (9) | $ 3 |
Segment Information (Reconcil_2
Segment Information (Reconciliation Of Income (Loss) From Operations By Segment To Consolidated Net Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | ||
Net income (loss) | $ 52 | $ 252 |
Segment Reconciling Items [Member] | ||
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | ||
Excluded realized gain (loss), after-tax | (60) | (316) |
Benefit ratio unlocking, after-tax | (349) | 142 |
Acquisition and integration costs related to mergers and acquisitions, after tax | (4) | (15) |
Annuities Segment [Member] | ||
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | ||
Net income (loss) | 261 | 250 |
Retirement Plan Services Segment [Member] | ||
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | ||
Net income (loss) | 40 | 39 |
Life Insurance Segment [Member] | ||
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | ||
Net income (loss) | 171 | 157 |
Group Protection Segment [Member] | ||
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | ||
Net income (loss) | 40 | 55 |
Other Operations [Member] | ||
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | ||
Net income (loss) | $ (47) | $ (60) |