Cover Page
Cover Page | 9 Months Ended |
Sep. 30, 2021 | |
Document Information [Line Items] | |
Document Type | S-1/A |
Amendment Flag | false |
Entity Registrant Name | GREAT AMERICAN LIFE INSURANCE CO. |
Entity Central Index Key | 0000723258 |
Entity Filer Category | Non-accelerated Filer |
Entity Emerging Growth Company | false |
Entity Small Business | false |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Assets: | |||
Cash and cash equivalents | $ 1,308 | $ 1,151 | $ 734 |
Investments: | |||
Fixed maturities, available for sale at fair value (amortized cost — $34,003 (unaudited), $31,598 and $36,144; allowance for expected credit losses of $15 at September 30, 2021 (unaudited) and $28 at December 31, 2020) | 36,083 | 34,123 | 37,899 |
Fixed maturities, trading at fair value | 40 | 42 | 54 |
Equity securities, at fair value | 648 | 773 | 809 |
Investments accounted for using the equity method | 786 | 1,075 | 985 |
Mortgage loans | 1,512 | 1,251 | 1,072 |
Policy loans | 142 | 151 | 164 |
Real estate and other investments | 0 | 341 | 311 |
Total cash and investments | 40,519 | 38,907 | 42,028 |
Deferred policy acquisition costs (including the impact of unrealized gains on securities of $768 (unaudited), $934 and $681) | 474 | 302 | 713 |
Accrued investment income | 292 | 278 | 335 |
Equity index call options | 646 | 825 | 924 |
Variable annuity assets (separate accounts) | 668 | 664 | 628 |
Funds held as collateral | 318 | 351 | 577 |
Net deferred tax assets | 44 | ||
Other assets | 438 | 438 | 362 |
Total assets | 50,134 | 48,571 | 45,893 |
Liabilities and Equity: | |||
Annuity benefits accumulated (including the impact of unrealized gains on securities of $287 (unaudited), $324 and $220) | 44,376 | 42,573 | 40,406 |
Life, accident and health reserves | 592 | 610 | 612 |
Variable annuity liabilities (separate accounts) | 668 | 664 | 628 |
Liability for funds held as collateral | 318 | 351 | 577 |
Net deferred tax liabilities | 11 | 99 | |
Other liabilities | 431 | 279 | 189 |
Total liabilities | 46,396 | 44,576 | 42,412 |
Shareholder's equity: | |||
Common stock and capital surplus — Par value — $7.50 per share: — 1,200,000 shares authorized — 201,000 shares issued and outstanding | 1,006 | 1,004 | 992 |
Retained earnings | 1,884 | 1,874 | 1,741 |
Accumulated other comprehensive income, net of tax | 848 | 1,070 | 700 |
Total shareholder's equity | 3,738 | 3,948 | 3,433 |
Noncontrolling interests | 0 | 47 | 48 |
Total equity | 3,738 | 3,995 | 3,481 |
Total liabilities and equity | 50,134 | 48,571 | 45,893 |
Annuity | |||
Investments: | |||
Recoverables from reinsurers | 6,522 | 6,539 | 0 |
Total assets | 47,886 | 45,217 | |
Other Lines | |||
Investments: | |||
Recoverables from reinsurers | $ 257 | $ 267 | $ 282 |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Fixed maturities, available for sale at amortized cost | $ 34,003 | $ 31,598 | $ 36,144 |
Fixed maturities, available for sale, allowance for expected credit losses | 15 | 28 | 0 |
Unrealized gains (losses) included in Balance Sheet line items related to the impact of unrealized gains on securities | $ 1,045 | $ 1,303 | $ 865 |
Common Stock, par value (USD per share) | $ 7.50 | $ 7.50 | $ 7.50 |
Common Stock, shares authorized | 1,200,000 | 1,200,000 | 1,200,000 |
Common Stock, shares issued | 201,000 | 201,000 | 201,000 |
Common Stock, shares outstanding | 201,000 | 201,000 | 201,000 |
Deferred policy acquisition costs | |||
Unrealized gains (losses) included in Balance Sheet line items related to the impact of unrealized gains on securities | $ 768 | $ 934 | $ 681 |
Annuity benefits accumulated | |||
Unrealized gains (losses) included in Balance Sheet line items related to the impact of unrealized gains on securities | $ 287 | $ 324 | $ 220 |
Consolidated Statement of Earni
Consolidated Statement of Earnings - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues: | |||||
Net investment income | $ 1,330 | $ 1,283 | $ 1,717 | $ 1,813 | $ 1,657 |
Realized gains (losses) on securities | 112 | (105) | 365 | 132 | (105) |
Life, accident and health net earned premiums | 14 | 17 | 22 | 22 | 24 |
Policy charges and other income | 81 | 76 | 104 | 114 | 115 |
Total revenues | 1,537 | 1,271 | 2,208 | 2,081 | 1,691 |
Costs and Expenses: | |||||
Annuity benefits | 744 | 905 | 1,192 | 1,151 | 998 |
Life, accident and health benefits | 19 | 30 | 40 | 36 | 37 |
Insurance acquisition expenses, net | 230 | 251 | 306 | 253 | 260 |
Other expenses | 127 | 107 | 141 | 144 | 140 |
Total costs and expenses | 1,120 | 1,293 | 1,679 | 1,584 | 1,435 |
Earnings before income taxes | 417 | (22) | 529 | 497 | 256 |
Provision for income taxes | 107 | (8) | 107 | 102 | 47 |
Net earnings, including noncontrolling interests | 310 | (14) | 422 | 395 | 209 |
Less: Net earnings attributable to noncontrolling interests | (2) | (1) | 2 | 2 | |
Net Earnings Attributable to Shareholder | $ 310 | $ (12) | $ 423 | $ 393 | $ 207 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | |||||
Net earnings, including noncontrolling interests | $ 310 | $ (14) | $ 422 | $ 395 | $ 209 |
Net unrealized gains (losses) on securities: | |||||
Unrealized holding gains (losses) on securities arising during the period | (184) | 326 | 659 | 654 | (443) |
Reclassification adjustment for realized (gains) losses included in net earnings | (19) | (4) | (313) | (13) | 5 |
Total net unrealized gains (losses) on securities | (203) | 322 | 346 | 641 | (438) |
Net unrealized gains on cash flow hedges | (19) | 24 | 24 | 28 | 2 |
Other comprehensive income (loss), net of tax | (222) | 346 | 370 | 669 | (436) |
Total comprehensive income (loss), net of tax | 88 | 332 | 792 | 1,064 | (227) |
Less: Comprehensive income (loss) attributable to noncontrolling interests | (2) | (1) | 2 | 2 | |
Comprehensive income (loss) attributable to shareholder | $ 88 | $ 334 | $ 793 | $ 1,062 | $ (229) |
Consolidated Statement of Chang
Consolidated Statement of Changes in Equity - USD ($) $ in Millions | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Shares | Total | TotalCumulative Effect, Period of Adoption, Adjustment | Noncontrolling Interests | Common Stock and Capital Surplus | Retained Earnings | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Inc. (Loss) | Accumulated Other Comprehensive Inc. (Loss)Cumulative Effect, Period of Adoption, Adjustment |
Beginning Balance, shares at Dec. 31, 2017 | 201,000 | ||||||||||
Beginning Balance at Dec. 31, 2017 | $ 2,808 | $ 3 | $ 2,761 | $ 3 | $ 47 | $ 956 | $ 1,248 | $ 93 | $ 557 | $ (90) | |
Increase (Decrease) in Stockholder's Equity [Roll Forward] | |||||||||||
Net earnings | 209 | 207 | 2 | 207 | |||||||
Other comprehensive income (loss) | (436) | (436) | (436) | ||||||||
Capital contributions from parent | 17 | 17 | 17 | ||||||||
Dividends | (60) | (60) | (60) | ||||||||
Other | (2) | (2) | |||||||||
Ending Balance, shares at Dec. 31, 2018 | 201,000 | ||||||||||
Ending Balance at Dec. 31, 2018 | 2,539 | 2,492 | 47 | 973 | 1,488 | 31 | |||||
Increase (Decrease) in Stockholder's Equity [Roll Forward] | |||||||||||
Net earnings | 395 | 393 | 2 | 393 | |||||||
Other comprehensive income (loss) | 669 | 669 | 669 | ||||||||
Capital contributions from parent | 19 | 19 | 19 | ||||||||
Dividends | (140) | (140) | (140) | ||||||||
Other | $ (1) | (1) | |||||||||
Ending Balance, shares at Dec. 31, 2019 | 201,000 | 201,000 | |||||||||
Ending Balance at Dec. 31, 2019 | $ 3,481 | 3,433 | 48 | 992 | 1,741 | 700 | |||||
Increase (Decrease) in Stockholder's Equity [Roll Forward] | |||||||||||
Net earnings | (14) | ||||||||||
Other comprehensive income (loss) | $ 346 | ||||||||||
Beginning Balance, shares at Dec. 31, 2019 | 201,000 | 201,000 | |||||||||
Beginning Balance at Dec. 31, 2019 | $ 3,481 | 3,433 | 48 | 992 | 1,741 | 700 | |||||
Increase (Decrease) in Stockholder's Equity [Roll Forward] | |||||||||||
Net earnings | 422 | 423 | (1) | 423 | |||||||
Other comprehensive income (loss) | 370 | 370 | 370 | ||||||||
Capital contributions from parent | 12 | 12 | 12 | ||||||||
Dividends | $ (285) | (285) | (285) | ||||||||
Ending Balance, shares at Dec. 31, 2020 | 201,000 | 201,000 | |||||||||
Ending Balance at Dec. 31, 2020 | $ 3,995 | $ (5) | 3,948 | $ (5) | 47 | 1,004 | 1,874 | $ (5) | 1,070 | ||
Increase (Decrease) in Stockholder's Equity [Roll Forward] | |||||||||||
Net earnings | 310 | 310 | 310 | ||||||||
Other comprehensive income (loss) | (222) | (222) | (222) | ||||||||
Capital contributions from parent | 1 | 1 | 1 | ||||||||
Dividends | (300) | (300) | (300) | ||||||||
Stock-based compensation expense | 1 | 1 | 1 | ||||||||
Sale of real estate | $ (47) | (47) | |||||||||
Ending Balance, shares at Sep. 30, 2021 | 201,000 | 201,000 | |||||||||
Ending Balance at Sep. 30, 2021 | $ 3,738 | $ 3,738 | $ 0 | $ 1,006 | $ 1,884 | $ 848 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating Activities: | |||||
Net earnings, including noncontrolling interests | $ 309 | $ (14) | $ 422 | $ 395 | $ 209 |
Adjustments: | |||||
Depreciation and amortization | (75) | (48) | (68) | (59) | (67) |
Annuity benefits | 744 | 905 | 1,192 | 1,151 | 998 |
Realized (gains) losses on investing activities | (112) | 107 | (363) | (132) | 105 |
Net sales of trading securities | 1 | 9 | 12 | 3 | 59 |
Deferred annuity and life policy acquisition costs | (185) | (112) | (155) | (206) | (263) |
Amortization of insurance acquisition costs | 186 | 208 | 250 | 202 | 215 |
Change in: | |||||
Recoverables from reinsurers | 135 | 25 | (67) | 16 | 14 |
Accrued investment income | (14) | 14 | 57 | (9) | (35) |
Funds held as collateral | 33 | 235 | 226 | (474) | 286 |
Other assets | 26 | 24 | (64) | 112 | (71) |
Life, accident and health reserves | (18) | (4) | (4) | (23) | (23) |
Liability for funds held as collateral | (33) | (235) | (226) | 474 | (286) |
Other liabilities | (48) | (45) | 51 | (42) | 11 |
Other operating activities, net | (305) | 18 | 58 | (74) | (84) |
Net cash provided by operating activities | 644 | 1,087 | 1,321 | 1,334 | 1,068 |
Investing Activities: | |||||
Purchases of fixed maturities | (7,885) | (6,136) | (7,615) | (6,177) | (7,898) |
Purchases of equity securities | (78) | (206) | (229) | (126) | (326) |
Purchases of mortgage loans | (306) | (120) | (243) | (407) | (142) |
Purchases of equity index options | (359) | (429) | (544) | (600) | (567) |
Purchases of other investments | (77) | (190) | (249) | (220) | (296) |
Purchases of real estate, property and equipment | (3) | (6) | (8) | (8) | (15) |
Proceeds from maturities and redemptions of fixed maturities | 4,818 | 3,004 | 4,100 | 3,215 | 3,551 |
Proceeds from repayments of mortgage loans | 46 | 33 | 68 | 118 | 155 |
Proceeds from sales of fixed maturities | 960 | 2,658 | 3,065 | 801 | 447 |
Proceeds from sales of equity securities | 339 | 170 | 284 | 214 | 121 |
Proceeds from settlements of equity index options | 835 | 617 | 873 | 666 | 786 |
Proceeds from sales of other investments | 592 | 32 | 79 | 65 | 122 |
Other investing activities, net | 9 | 10 | 3 | 10 | 10 |
Net cash used in investing activities | (967) | (563) | (416) | (2,449) | (4,052) |
Financing Activities: | |||||
Annuity receipts | 4,569 | 2,767 | 4,087 | 4,960 | 5,407 |
Ceded annuity receipts | (482) | (246) | (492) | 0 | 0 |
Annuity surrenders, benefits and withdrawals | (3,105) | (2,466) | (3,546) | (3,358) | (2,916) |
Ceded annuity surrenders, benefits and withdrawals | 514 | 0 | 206 | 0 | 0 |
Net transfers from variable annuity assets | 62 | 44 | 61 | 60 | 47 |
Cash transferred in reinsurance | 0 | 0 | (554) | 0 | 0 |
Advances from Federal Home Loan Bank | 0 | 200 | 200 | 0 | 225 |
Repayments to Federal Home Loan Bank | (731) | (40) | (165) | 0 | 0 |
Cash dividends paid | (300) | (60) | (285) | (140) | (60) |
Other financing activities, net | (47) | 1 | 0 | (2) | (1) |
Net cash provided by (used in) financing activities | 480 | 200 | (488) | 1,520 | 2,702 |
Net Change in Cash and Cash Equivalents | 157 | 724 | 417 | 405 | (282) |
Cash and cash equivalents at beginning of period | 1,151 | 734 | 734 | 329 | 611 |
Cash and cash equivalents at end of period | $ 1,308 | $ 1,458 | $ 1,151 | $ 734 | $ 329 |
Accounting Policies
Accounting Policies | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Accounting Policies | A. Accounting Policies Basis of Presentation The consolidated financial statements include the accounts of Great American Life Insurance Company and its subsidiaries (“GALIC” or the “Company”). As of May 28, 2021 (unaudited) GALIC is a direct wholly-owned subsidiary of Glidepath Holdings Inc., a financial services holding company wholly-owned by Massachusetts Mutual Life Insurance Company. Prior to that date GALIC was a direct wholly-owned subsidiary of Great American Financial Resources, Inc. (“GAFRI”), a financial services holding company wholly-owned by American Financial Group, Inc. (“AFG”). Certain reclassifications have been made to prior years to conform to the current year’s presentation. All significant intercompany balances and transactions have been eliminated. The results of operations of companies since their for m The preparation of the financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Changes in circumstances could cause actual results to differ materially from those estimates. Unaudited Interim Consolidated Financial Information September 30, 2021, and the consolidated statements of earnings, comprehensive income, and cash flows for the nine months ended September 30, 2021 and 2020 and the consolidated statement of changes in equity for the nine months ended September 30, 2021 and the related footnote disclosures are unaudited. Unaudited disclosures also include all disclosures related to post-acquisition activities between GALIC and Mass Mutual. The impact of purchase accounting related to the post-acquisition between GALIC and Mass Mutual is currently being reviewed. These unaudited interim consolidated financial statements have been prepared in accordance with GAAP. In management’s opinion, the unaudited interim consolidated financial statements have been prepared on the same basis as the audited financial statements and include all adjustments, which include only normal recurring adjustments, necessary for the fair presentation of GALIC’s statement of financial position as of September 30, 2021 and GALIC’s consolidated results of operations and GALIC’s cash flows for the nine months ended September 30, 2021 and 2020. Events or transactions occurring subsequent to September 30, 2021, and prior to the filing of these unaudited interim consolidated financial statements, have been evaluated for potential recognition or disclosure herein. The results for the nine months ended September 30, 2021 are not necessarily indicative of the results expected for the full fiscal year. Fair Value Measurements use in pricing the asset or liability (“inputs”) are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect GALIC’s assumptions about the assumptions market participants would use in pricing the asset or liability. GALIC did not have any material nonrecurring fair value measurements the first nine months ended September 30, 2021 (unaudited) or in 2020 or 2019. Credit Losses on Financial Instruments 2016-13, Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments The updated guidance also amended the current other-than-temporary impairment model for available for sale debt securities by requiring the recognition of impairments relating to credit losses through an allowance and limits the amount of credit loss to the difference between a security’s amortized cost basis and its fair value. Subsequent increases or decreases in expected credit losses will be recorded immediately in net earnings through realized gains (losses). Investments 2016-01, Holding gains and losses on equity securities carried at fair value are generally recorded in realized gains (losses) on securities. However, GALIC records holding gains and losses on securities classified as “trading” under previous guidance, its small portfolio of limited partnerships and similar investments carried at fair value and certain other securities classified at purchase as “fair value through net investment income” in net investment income. Fixed maturity securities classified as “available for sale” are reported at fair value with unrealized gains and losses included in AOCI in GALIC’s Balance Sheet. Fixed maturity securities classified as “trading” are reported at fair value with changes in unrealized holding gains or losses during the period included in net investment income. Mortgage loans (net of any allowance) and policy loans are carried primarily at the aggregate unpaid balance. Premiums and discounts on fixed maturity securities are amortized using the effective interest method. Mortgage-backed securities (“MBS”) are amortized over a period based on estimated future principal payments, including prepayments. Prepayment assumptions are reviewed periodically and adjusted to reflect actual prepayments and changes in expectations. Limited partnerships and similar investments are generally accounted for using the equity method of accounting. Under the equity method, GALIC records its share of the earnings or losses of the investee based on when they are reported by the investee in its financial statements rather than in the period in which the investee declares a dividend. GALIC’s share of the earnings or losses from equity method investments is generally recorded on a quarter lag due to the timing of the receipt of the investee’s financial statements. GALIC’s equity in the earnings (losses) of limited partnerships and similar investments is included in net investment income. Realized gains or losses on the disposal of fixed maturity securities are determined on the specific identification basis. When a decline in the value of an available for sale fixed maturity is considered to be other-than-temporary at the balance sheet date, an allowance for credit losses (impairment), including any write-off “Credit Losses on Financial Instruments” Derivatives To qualify for hedge accounting, at the inception of a derivative contract, GALIC formally documents the relationship between the terms of the hedge and the hedged items and its risk management objective. This documentation includes defining how hedge effectiveness and ineffectiveness will be measured on a retrospective and prospective basis. Changes in the fair value of derivatives that are designated and qualify as highly effective cash flow hedges are recorded in AOCI and are reclassified into earnings when the variability of the cash flows from the hedged items impacts earnings. When the change in the fair value of a qualifying cash flow hedge is included in earnings, it is included in the same line item in the statement of earnings as the cash flows from the hedged item. GALIC uses interest rate swaps that are designated and qualify as highly effective cash flow hedges to mitigate interest rate risk related to certain floating-rate securities included in GALIC’s portfolio of fixed maturity securities. Funds Held as Collateral Reinsurance Certain reinsurance arrangements in GALIC’s fixed and indexed annuity operations do not transfer significant insurance risk and are therefore accounted for using the deposit method. This accounting treatment results in amounts paid by GALIC to the reinsurer to be recorded as a deposit asset. The reinsurance deposit asset (reinsurance recoverable) is adjusted as amounts are paid or received under the underlying contracts. GALIC’s reinsurance partner posts collateral in excess of amounts due to GALIC under these contracts. Under reinsurance accounting guidance on transactions involving annuities, the gain or loss is deferred and recognized over the expected life of the underlying annuity contracts (using methods similar to those used to amortize DPAC). Deferred Policy Acquisition Costs (“DPAC”) DPAC related to annuities is deferred to the extent deemed recoverable and amortized, with interest, in relation to the present value of actual and expected gross profits on the policies. Expected gross profits consist principally of estimated future investment margin (estimated future net investment income less interest credited on policyholder funds) and surrender, mortality, and other life and annuity policy charges, less death, annuitization and guaranteed withdrawal benefits in excess of account balances and estimated future policy administration expenses. To the extent that realized gains and losses result in adjustments to the amortization of DPAC related to annuities, such adjustments are reflected as components of realized gains (losses) on securities. DPAC related to traditional life and health insurance is amortized over the expected premium paying period of the related policies, in proportion to the ratio of annual premium revenues to total anticipated premium revenues. See “Life, Accident and Health Reserves” DPAC includes the present value of future profits on business in force of annuity and life, accident and health insurance companies acquired (“PVFP”). PVFP represents the portion of the costs to acquire companies that is allocated to the value of the right to receive future cash flows from insurance contracts existing at the date of acquisition. PVFP is amortized with interest in relation to expected gross profits of the acquired policies for annuities and universal life products and in relation to the premium paying period for traditional life and health insurance products. DPAC and certain other balance sheet amounts related to annuity and life businesses are also adjusted, net of tax, for the change in expense that would have been recorded if the unrealized gains (losses) from securities had actually been realized. These adjustments are included in unrealized gains (losses) on marketable securities, a component of AOCI in GALIC’s Balance Sheet. Annuity Benefits Accumulated For certain products, annuity benefits accumulated also includes reserves for accrued persistency and premium bonuses, guaranteed withdrawals and excess benefits expected to be paid on future deaths and annuitizations (“EDAR”). The liabilities for EDAR and guaranteed withdrawals are accrued for and modified using assumptions consistent with those used in determining DPAC and DPAC amortization, except that amounts are determined in relation to the present value of total expected assessments. Total expected assessments consist principally of estimated future investment margin, surrender, mortality, and other life and annuity policy charges, and unearned revenues once they are recognized as income. Annuity benefits accumulated also includes amounts advanced from the Federal Home Loan Bank of Cincinnati. Unearned Revenue Life, Accident and Health Reserves For long-duration contracts (such as traditional life and long-term care policies), loss recognition occurs when, based on current expectations as of the measurement date, existing contract liabilities plus the present value of future premiums (including reasonably expected rate increases) are not expected to cover the present value of future claims payments and related settlement and maintenance costs (excluding overhead) as well as unamortized acquisition costs. If a block of business is determined to be in loss recognition, a charge is recorded in earnings in an amount equal to the excess of the present value of expected future claims costs and unamortized acquisition costs over existing reserves plus the present value of expected future premiums (with no provision for adverse deviation). The charge is recorded first to reduce unamortized acquisition costs and then as an additional reserve (if unamortized acquisition costs have been reduced to zero). In addition, reserves for traditional life policies are subject to adjustment for loss recognition charges that would have been recorded if the unrealized gains (losses) from securities had actually been realized. This adjustment is included in unrealized gains (losses) on marketable securities, a component of AOCI in GALIC’s Balance Sheet. Variable Annuity Assets and Liabilities GALIC’s variable annuity contracts contain a guaranteed minimum death benefit (“GMDB”) to be paid if the policyholder dies before the annuity payout period commences. In periods of declining equity markets, the GMDB may exceed the value of the policyholder’s account. A GMDB liability is established for future excess death benefits using assumptions together with a range of reasonably possible scenarios for investment fund performance that are consistent with DPAC capitalization and amortization assumptions. Leases 2016-02, • exclude leases with a term of 12 months or less from the calculation of lease assets and liabilities, • not separate lease and non-lease • for contracts existing at the date of adoption — not reassess whether a contract is a lease or contains a lease, how initial direct costs were accounted for or whether the lease is an operating or finance lease, and • use hindsight to determine the lease term for leases existing at the date of adoption. GALIC did not have any material leases at September 30, 2021 (unaudited) or in 2020 or 2019. Noncontrolling Interests Premium Recognition Income Taxes year-end, Beginning in June of 2021 (unaudited) GALIC and its subsidiaries entered into a separate intercompany tax allocation agreement. Pursuant to the agreement, each company’s tax expense is determined based upon its inclusion in the consolidated tax return of GALIC and its includable subsidiaries. Estimated payments are made quarterly during the year. Following year-end, o Deferred income taxes are calculated using the liability method. Under this method, deferred income tax assets and liabilities are determined based on differences between financial reporting and tax bases and are measured using enacted tax rates. A valuation allowance is established to reduce total deferred tax assets to an amount that will more likely than not be realized. The effect of a change in tax rates on deferred tax assets and liabilities is recorded in net earnings in the period that includes the enactment date. GALIC recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained under examination by the appropriate taxing authority. Interest and penalties on GALIC’s reserve for uncertain tax positions are recognized as a component of tax expense. Benefit Plans Statement of Cash Flows |
Segments of Operations
Segments of Operations | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Segments of Operations | B. Segments of Operations GALIC manages its business as two segments: (i) Annuity and (ii) Run-off The following tables (in millions) show GALIC’s assets, revenues and earnings before income taxes by segment. 2020 2019 2018 Assets Annuity $ 47,886 $ 45,217 $ 40,115 Run-off 685 676 686 Total assets $ 48,571 $ 45,893 $ 40,801 Nine months ended Year ended December 31, 2021 2020 2020 2019 2018 (unaudited) (unaudited) Revenues Annuity: Net investment income $ 1,316 $ 1,268 $ 1,699 $ 1,792 $ 1,638 Other income 76 73 97 108 108 Total annuity 1,392 1,341 1,796 1,900 1,746 Run-off 33 35 47 49 50 Total revenues before realized gains (losses) 1,425 1,376 1,843 1,949 1,796 Realized gains (losses) on securities 112 (105 ) 365 132 (105 ) Total revenues $ 1,537 $ 1,271 $ 2,208 $ 2,081 $ 1,691 Nine months ended Year ended December 31, 2021 2020 2020 2019 2018 (unaudited) (unaudited) Earnings Before (Loss) Income Taxes Annuity $ 303 $ 89 $ 170 $ 363 $ 363 Run-off 2 (6 ) (6 ) 2 (2 ) Total earnings before realized gains (losses) and income taxes 305 83 164 365 361 Realized gains (losses) on securities 112 (105 ) 365 132 (105 ) Total earnings (loss) before income taxes $ 417 $ (22 ) $ 529 $ 497 $ 256 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | C. Fair Value Measurements Accounting standards for measuring fair value are based on inputs used in estimating fair value. The three levels of the hierarchy are as follows: Level 1 — Quoted prices for identical assets or liabilities in active markets (markets in which transactions occur with sufficient frequency and volume to provide pricing information on an ongoing basis). GALIC’s Level 1 financial instruments consist primarily of publicly traded equity and debt securities for which quoted market prices in active markets are available. Level 2 — Quoted prices for similar instruments in active markets; quoted prices for identical or similar assets or liabilities in inactive markets (markets in which there are few transactions, the prices are not current, price quotations vary substantially over time or among market makers, or in which little information is released publicly); and valuations based on other significant inputs that are observable in active markets. GALIC’s Level 2 financial instruments include separate account assets, highly liquid government bonds, corporate and municipal fixed maturity securities, asset-backed securities (“ABS”), mortgage-backed securities (“MBS”), certain non-affiliated Level 3 — Valuations derived from market valuation techniques generally consistent with those used to estimate the fair values of Level 2 financial instruments in which one or more significant inputs are unobservable or when the market for a security exhibits significantly less liquidity relative to markets supporting Level 2 fair value measurements. The unobservable inputs may include management’s own assumptions about the assumptions market participants would use based on the best information available at the valuation date. Financial instruments whose fair value is estimated based mostly on internally developed using significant inputs not based on, or corroborated by, observable market information are classified as Level 3. For the first five months of 2021 and in prior years, AFG’s management was responsible for the valuation process and uses data from outside sources (including nationally recognized pricing services and broker/dealers) in establishing fair value. The Company’s internal investment professionals are a group of approximately 20 investment professionals whose primary responsibility is to manage AFG’s investment portfolio. These professionals monitor individual investments as well as overall industries and are active in the financial markets on a daily basis. The group is led by AFG’s chief investment officer, who reports directly to one of AFG’s Co-CEOs. Valuation techniques utilized by pricing services and prices obtained from external sources are reviewed by AFG’s internal investment professionals who are familiar with the securities being priced and the markets in which they trade to ensure the fair value determination is representative of an exit price. To validate the appropriateness of the prices obtained, these investment managers consider widely published indices (as benchmarks), recent trades, changes in interest rates, general economic conditions and the credit quality of the specific issuers. In addition, the Company communicates directly with the pricing services regarding the methods and assumptions used in pricing, including verifying, on a test basis, the inputs used by the service to value specific securities. Beginning in June of 2021 MassMutual assumed responsibility for the valuation process and uses data from outside sources (including nationally recognized pricing services and broker/dealers) in establishing fair value. General Investment Account valuation is provided by MassMutual’s Pricing Operations team, a group is led by MassMutual’s Head of Investment Operations who reports directly to MassMutual’s Chief Investment Officer. Valuation techniques utilized by pricing services and prices obtained from external sources are reviewed by members of MassMutual’s Pricing Operations team. Asset valuation specialists, MassMutual internal investment professionals who are familiar with the securities being priced and the markets in which they trade, review prices that breach defined tolerance thresholds to determine if the price is appropriate. In addition, the Investment Pricing Operations team considers widely published indices (as benchmarks), recent trades, changes in interest rates, general economic conditions and the credit quality of the specific issuers. The Investment Pricing Operations team communicates directly with the pricing services regarding the methods and assumptions used in pricing as needed on an ad hoc basis and during annual pricing vendor due diligence procedures. Assets and liabilities measured and carried at fair value in the financial statements are summarized below (in millions): Level 1 Level 2 Level 3 Total September 30, 2021 (unaudited) Assets: Available for sale (“AFS”) fixed maturities: U.S. Government and government agencies $ — $ 25 $ — $ 25 States, municipalities and political subdivisions — 2,885 59 2,944 Foreign government — 34 — 34 Residential MBS — 2,516 2 2,518 Commercial MBS — 593 9 602 Collateralized loan obligations — 3,290 — 3,290 Other asset-backed securities 298 6,742 1,026 8,066 Corporate and other 28 16,847 1,729 18,604 Total AFS fixed maturities 326 32,932 2,825 36,083 Trading fixed maturities — 40 — 40 Equity securities 68 199 381 648 Equity index call options — 646 — 646 Variable annuity assets (separate accounts) (*) — 668 — 668 Other assets — derivatives — 59 — 59 Total assets accounted for at fair value $ 394 $ 34,544 $ 3,206 $ 38,144 Liabilities: Derivatives in annuity benefits accumulated $ — $ — $ 4,208 $ 4,208 Other liabilities — derivatives — 19 — 19 Total liabilities accounted for at fair value $ — $ 19 $ 4,208 $ 4,227 (*) Variable annuity liabilities equal the fair value of variable annuity assets. Assets and liabilities measured and carried at fair value in the financial statements are summarized below (in millions): Level 1 Level 2 Level 3 Total December 31, 2020 Assets: Available for sale (“AFS”) fixed maturities: U.S. Government and government agencies $ 6 $ 23 $ 15 $ 44 States, municipalities and political subdivisions — 3,358 64 3,422 Foreign government — 34 — 34 Residential MBS — 2,013 127 2,140 Commercial MBS — 688 10 698 Collateralized loan obligations — 3,443 48 3,491 Other asset-backed securities — 4,107 1,069 5,176 Corporate and other 41 17,733 1,344 19,118 Total AFS fixed maturities 47 31,399 2,677 34,123 Trading fixed maturities — 42 — 42 Equity securities 431 49 293 773 Equity index call options — 825 — 825 Variable annuity assets (separate accounts) (*) — 664 — 664 Other assets — derivatives — 102 — 102 Total assets accounted for at fair value $ 478 $ 33,081 $ 2,970 $ 36,529 Liabilities: Derivatives in annuity benefits accumulated $ — $ — $ 3,933 $ 3,933 Other liabilities — derivatives — 10 — 10 Total liabilities accounted for at fair value $ — $ 10 $ 3,933 $ 3,943 December 31, 2019 Assets: Available for sale fixed maturities: U.S. Government and government agencies $ 6 $ 24 $ 15 $ 45 States, municipalities and political subdivisions — 4,284 65 4,349 Foreign government — 34 — 34 Residential MBS — 1,971 128 2,099 Commercial MBS — 806 29 835 Collateralized loan obligations — 3,365 14 3,379 Other asset-backed securities — 4,357 1,030 5,387 Corporate and other 16 20,220 1,535 21,771 Total AFS fixed maturities 22 35,061 2,816 37,899 Trading fixed maturities — 54 — 54 Equity securities 492 41 276 809 Equity index call options — 924 — 924 Variable annuity assets (separate accounts) (*) — 628 — 628 Other assets — derivatives — 50 — 50 Total assets accounted for at fair value $ 514 $ 36,758 $ 3,092 $ 40,364 Liabilities: Derivatives in annuity benefits accumulated $ — $ — $ 3,730 $ 3,730 Other liabilities — derivatives — 10 — 10 Total liabilities accounted for at fair value $ — $ 10 $ 3,730 $ 3,740 (*) Variable annuity liabilities equal the fair value of variable annuity assets. Approximately 8% of the total assets carried at fair value on September 30, 2021 (unaudited) were Level 3 assets. Approximately $ 49 2 Internally developed Level 3 asset fair values represent approximately $ 3.14 98 The derivatives embedded in GALIC’s fixed-indexed and registered index-linked annuity liabilities are measured using a discounted cash flow approach and had a fair value of $ 4.21 3.93 The following table presents information about the unobservable inputs used by management in determining fair value of these Level 3 liabilities at September 30, 2021 (unaudited). See Note F — “Derivatives.” Unobservable Input Range Adjustment for insurance subsidiary’s credit risk 0% – 2.2% over the risk-free rate Risk margin for uncertainty in cash flows 0.99% reduction in the discount rate Surrenders 7% – 22% of indexed account value Partial surrenders 2% – 10% of indexed account value Annuitizations 0.1% – 1% of indexed account value Deaths 2.0% – 13.7% of indexed account value Budgeted option costs 2.2% – 2.8% of indexed account value The range of adjustments for credit risk is based on the Moody’s corporate A2 bond index and reflects credit spread variations across the yield curve. The range of projected surrender rates reflects the specific surrender charges and other features of GALIC’s individual fixed-indexed and registered index-linked annuity products with an expected range of 8% to 11% in the majority of future calendar years ( 7 Changes in balances of Level 3 financial assets and liabilities carried at fair value during the nine months ended September 30, 2021 (unaudited) and the years ended December 31, 2020, 2019 and 2018 are presented below (in millions). The transfers into and out of Level 3 were due to changes in the availability of market observable inputs and $20 million of equity securities transferred into Level 3 in the first quarter of 2018 related to a small number of limited partnerships and similar investments carried at cost under the prior guidance that are carried at fair value through net earnings under new guidance adopted on January 1, 2018, as discussed in Note A “Accounting Policies — Investments.” Total realized/unrealized Balance at Net Other Purchases Sales and Transfer Transfer Balance at AFS fixed maturities: U.S. government agency $ 15 $ 3 $ (18 ) $ — $ — $ — $ — $ — State and municipal 64 — (2 ) — (3 ) — — 59 Residential MBS 127 (3 ) 1 — (13 ) 2 (112 ) 2 Commercial MBS 10 (1 ) — — (1 ) 8 (7 ) 9 Collateralized loan obligations 48 3 (3 ) — (1 ) — (47 ) — Other asset-backed securities 1,069 5 3 330 (318 ) 152 (215 ) 1,026 Corporate and other 1,344 — 58 235 (134 ) 295 (69 ) 1,729 Total AFS fixed maturities 2,677 7 39 565 (470 ) 457 (450 ) 2,825 Equity securities 293 91 — 69 (65 ) — (7 ) 381 Total Level 3 assets $ 2,970 $ 98 $ 39 $ 634 $ (535 ) $ 457 $ (457 ) $ 3,206 Embedded derivatives $ (3,933 ) $ (296 ) $ — $ (283 ) $ 304 $ — $ — $ (4,208 ) Total Level 3 liabilities $ (3,933 ) $ (296 ) $ — $ (283 ) $ 304 $ — $ — $ (4,208 ) Total realized/unrealized Balance at Net Other Purchases Sales and Transfer Transfer Balance at AFS fixed maturities: U.S. government agency $ 15 $ 3 $ (3 ) $ — $ — $ — $ — $ 15 State and municipal 65 — 4 — (3 ) — (2 ) 64 Residential MBS 128 (6 ) (7 ) — (13 ) 49 (24 ) 127 Commercial MBS 29 — — — (3 ) 1 (17 ) 10 Collateralized loan obligations 14 (5 ) 17 — — 135 (113 ) 48 Other asset-backed securities 1,030 (10 ) 14 296 (282 ) 173 (152 ) 1,069 Corporate and other 1,535 2 34 227 (130 ) 128 (452 ) 1,344 Total AFS fixed maturities 2,816 (16 ) 59 523 (431 ) 486 (760 ) 2,677 Equity securities 276 (1 ) — 35 (12 ) 9 (14 ) 293 Total Level 3 assets $ 3,092 $ (17 ) $ 59 $ 558 $ (443 ) $ 495 $ (774 ) $ 2,970 Embedded derivatives (*) $ (3,730 ) $ (283 ) $ — $ (242 ) $ 322 $ — $ — $ (3,933 ) Total Level 3 liabilities $ (3,730 ) $ (283 ) $ — $ (242 ) $ 322 $ — $ — $ (3,933 ) (*) Total realized/unrealized gains (losses) included in net earnings for the embedded derivatives reflects a favorable adjustment related to the unlocking of actuarial assumptions of $ 240 Total realized/unrealized Balance at Net Other Purchases Sales and Transfer Transfer Balance at AFS fixed maturities: U.S. government agency $ 8 $ — $ 7 $ — $ — $ — $ — $ 15 State and municipal 59 — 6 — (3 ) 10 (7 ) 65 Residential MBS 161 3 (3 ) — (18 ) 36 (51 ) 128 Commercial MBS 48 2 — — (13 ) 3 (11 ) 29 Collateralized loan obligations 85 (4 ) 4 — — 14 (85 ) 14 Other asset-backed securities 543 — 5 727 (162 ) 23 (106 ) 1,030 Corporate and other 1,719 (1 ) 53 378 (250 ) 28 (392 ) 1,535 Total AFS fixed maturities 2,623 — 72 1,105 (446 ) 114 (652 ) 2,816 Equity securities 212 8 — 36 (2 ) 22 — 276 Total Level 3 assets $ 2,835 $ 8 $ 72 $ 1,141 $ (448 ) $ 136 $ (652 ) $ 3,092 Embedded derivatives (*) $ (2,720 ) $ (919 ) $ — $ (333 ) $ 242 $ — $ — $ (3,730 ) Total Level 3 liabilities $ (2,720 ) $ (919 ) $ — $ (333 ) $ 242 $ — $ — $ (3,730 ) (*) Total realized/unrealized gains (losses) included in net earnings for the embedded derivatives includes a favorable adjustment related to the unlocking of actuarial assumptions of $ 181 Total realized/unrealized Balance at Net Other Purchases Sales and Transfer Transfer Balance at AFS fixed maturities: U.S. government agency $ 8 $ — $ — $ — $ — $ — $ — $ 8 State and municipal 72 — (3 ) — (2 ) — (8 ) 59 Residential MBS 99 (5 ) (4 ) — (18 ) 106 (17 ) 161 Commercial MBS 34 — — 14 — — — 48 Collateralized loan obligations 142 (2 ) (9 ) 24 (11 ) 2 (61 ) 85 Other asset-backed securities 398 — (1 ) 292 (171 ) 69 (44 ) 543 Corporate and other 941 (9 ) (18 ) 986 (148 ) 26 (59 ) 1,719 Total AFS fixed maturities 1,694 (16 ) (35 ) 1,316 (350 ) 203 (189 ) 2,623 Equity securities 105 (4 ) — 106 (4 ) 20 (11 ) 212 Total Level 3 assets $ 1,799 $ (20 ) $ (35 ) $ 1,422 $ (354 ) $ 223 $ (200 ) $ 2,835 Embedded derivatives (*) $ (2,542 ) $ 204 $ — $ (545 ) $ 163 $ — $ — $ (2,720 ) Total Level 3 liabilities $ (2,542 ) $ 204 $ — $ (545 ) $ 163 $ — $ — $ (2,720 ) (*) Total realized/unrealized gains (losses) included in net earnings for the embedded derivatives includes losses related to the unlocking of actuarial assumptions of $ 44 Fair Value of Financial Instruments Carrying Fair Value Value Total Level 1 Level 2 Level 3 September 30, 2021 (unaudited) Financial assets: Cash and cash equivalents $ 1,308 $ 1,308 $ 1,308 $ — $ — Mortgage loans 1,512 — — — — Policy loans 142 142 — — — Total financial assets not accounted for at fair value $ 2,962 $ — $ — $ — $ — Financial liabilities: Annuity benefits accumulated (*) $ — $ — $ — $ — $ — Total financial liabilities not accounted for at fair value $ — $ — $ — $ — $ — December 31, 2020 Financial assets: Cash and cash equivalents $ 1,151 $ 1,151 $ 1,151 $ — $ — Mortgage loans 1,251 1,271 — — 1,271 Policy loans 151 151 — — 151 Total financial assets not accounted for at fair value $ 2,553 $ 2,573 $ 1,151 $ — $ 1,422 Financial liabilities: Annuity benefits accumulated (*) $ 41,460 $ 43,081 $ — $ — $ 43,081 Total financial liabilities not accounted for at fair value $ 41,460 $ 43,081 $ — $ — $ 43,081 December 31, 2019 Financial assets: Cash and cash equivalents $ 734 $ 734 $ 734 $ — $ — Mortgage loans 1,072 1,081 — — 1,081 Policy loans 164 164 — — 164 Total financial assets not accounted for at fair value $ 1,970 $ 1,979 $ 734 $ — $ 1,245 Financial liabilities: Annuity benefits accumulated (*) $ 40,160 $ 40,182 $ — $ — $ 40,182 Total financial liabilities not accounted for at fair value $ 40,160 $ 40,182 $ — $ — $ 40,182 (*) Excludes $ 1.16 1.11 247 |
Balance Sheet Impact of Net Unr
Balance Sheet Impact of Net Unrealized Gains on Securities | 9 Months Ended |
Sep. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Balance Sheet Impact of Net Unrealized Gains on Securities | D. Balance Sheet Impact of Net Unrealized Gains on Securities In addition to adjusting fixed maturity securities classified as “available for sale” to fair value, GAAP requires that deferred policy acquisition costs and certain other balance sheet amounts related to annuity and life businesses be adjusted to the extent that unrealized gains and losses from securities would result in adjustments to those balances had the unrealized gains or losses actually been realized. The following table shows (in millions) the components of the net unrealized gains on securities that is included in AOCI in GALIC’s Balance Sheet. Asset Impact of Carrying September 30, 2021 (unaudited) Fixed maturities $ 33,988 $ 2,095 $ 36,083 Deferred policy acquisition costs 1,242 (768 ) 474 Annuity benefits accumulated (44,089 ) (287 ) (44,376 ) Life, accident and health reserves (589 ) (3 ) (592 ) Unearned revenue (included in other liabilities) (25 ) 8 (17 ) Net unrealized gain, pretax 1,045 Deferred tax on unrealized gain (219 ) Net unrealized gain, after tax (included in AOCI) $ 826 December 31, 2020 Fixed maturities $ 31,570 $ 2,553 $ 34,123 Deferred policy acquisition costs 1,236 (934 ) 302 Annuity benefits accumulated (42,249 ) (324 ) (42,573 ) Life, accident and health reserves (607 ) (3 ) (610 ) Unearned revenue (included in other liabilities) (26 ) 11 (15 ) Net unrealized gain, pretax 1,303 Deferred tax on unrealized gain (274 ) Net unrealized gain, after tax (included in AOCI) $ 1,029 December 31, 2019 Fixed maturities $ 36,144 $ 1,755 $ 37,899 Deferred policy acquisition costs 1,394 (681 ) 713 Annuity benefits accumulated (40,186 ) (220 ) (40,406 ) Unearned revenue (included in other liabilities) (23 ) 11 (12 ) Net unrealized gain, pretax 865 Deferred tax on unrealized gain (182 ) Net unrealized gain, after tax (included in AOCI) $ 683 |
Investments
Investments | 9 Months Ended |
Sep. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | E. Investments Available for sale fixed maturities at September 30 (unaudited) and December 31 consisted of the following (in millions): Amortized Allowance for Gross Unrealized Net Fair Gains Losses September 30, 2021 (unaudited) Fixed maturities: U.S. Government and government agencies $ 39 $ — $ 2 $ (16 ) $ (14 ) $ 25 States, municipalities and political subdivisions 2,680 — 264 — 264 2,944 Foreign government 31 — 3 — 3 34 Residential MBS 2,362 2 166 (8 ) 158 2,518 Commercial MBS 573 — 29 — 29 602 Collateralized loan obligations 3,279 3 18 (4 ) 14 3,290 Other asset-backed securities 7,982 10 142 (48 ) 94 8,066 Corporate and other 17,057 — 1,563 (16 ) 1,547 18,604 Total fixed maturities $ 34,003 $ 15 $ 2,187 $ (92 ) $ 2,095 $ 36,083 December 31, 2020 Fixed maturities: U.S. Government and government agencies $ 40 $ — $ 4 $ — $ 4 $ 44 States, municipalities and political subdivisions 3,053 — 371 (2 ) 369 3,422 Foreign government 31 — 3 — 3 34 Residential MBS 1,954 3 192 (3 ) 189 2,140 Commercial MBS 659 — 40 (1 ) 39 698 Collateralized loan obligations 3,490 10 24 (13 ) 11 3,491 Other asset-backed securities 5,099 11 142 (54 ) 88 5,176 Corporate and other 17,272 4 1,874 (24 ) 1,850 19,118 Total fixed maturities $ 31,598 $ 28 $ 2,650 $ (97 ) $ 2,553 $ 34,123 December 31, 2019 Fixed maturities: U.S. Government and government agencies $ 38 $ — $ 7 $ — $ 7 $ 45 States, municipalities and political subdivisions 4,080 — 270 (1 ) 269 4,349 Foreign government 31 — 3 — 3 34 Residential MBS 1,909 — 193 (3 ) 190 2,099 Commercial MBS 807 — 28 — 28 835 Collateralized loan obligations 3,401 — 8 (30 ) (22 ) 3,379 Other asset-backed securities 5,265 — 138 (16 ) 122 5,387 Corporate and other 20,613 — 1,176 (18 ) 1,158 21,771 Total fixed maturities $ 36,144 $ — $ 1,823 $ (68 ) $ 1,755 $ 37,899 Equity securities, which are reported at fair value with holding gains and losses recognized in net earnings, consisted of the following at September 30, 2021 (unaudited), December 31, 2020 and 2019 (in millions): September 30, 2021 (unaudited) December 31, 2020 December 31, 2019 Fair Value Fair Value Fair Value over (under) over (under) over (under) Actual Cost Fair Value Cost Actual Cost Fair Value Cost Actual Cost Fair Value Cost Common stocks $ — $ 241 $ — $ 423 $ 412 $ (11 ) $ 497 $ 552 $ 55 Perpetual preferred stocks — 407 — 333 361 28 249 257 8 Total equity securities carried at fair value $ — $ 648 $ — $ 756 $ 773 $ 17 $ 746 $ 809 $ 63 The following tables show gross unrealized losses (dollars in millions) on available for sale fixed maturities by investment category and length of time that individual securities have been in a continuous unrealized loss po s Less Than Twelve Months Twelve Months or More Unrealized Loss Fair Value Fair Value as % of Cost Unrealized Loss Fair Value Fair Value as % of Cost September 30, 2021 (unaudited) Fixed maturities: U.S. Government and government agencies $ (16 ) $ 1 6 % $ — $ — — % States, municipalities and political subdivisions — 5 100 % — — — % Residential MBS (6 ) 907 99 % (2 ) 20 91 % Commercial MBS — 9 100 % — — — % Collateralized loan obligations (3 ) 433 99 % (1 ) 259 100 % Other asset-backed securities (37 ) 2,410 98 % (11 ) 314 97 % Corporate and other (13 ) 723 98 % (3 ) 139 98 % Total fixed maturities $ (75 ) $ 4,488 98 % $ (17 ) $ 732 98 % December 31, 2020 Fixed maturities: U.S. Government and government agencies $ — $ — — % $ — $ — — % States, municipalities and political subdivisions (2 ) 80 98 % — — — % Residential MBS (2 ) 124 98 % (1 ) 23 96 % Commercial MBS (1 ) 32 97 % — 5 100 % Collateralized loan obligations (2 ) 496 100 % (11 ) 1,256 99 % Other asset-backed securities (35 ) 974 97 % (19 ) 295 94 % Corporate and other (20 ) 724 97 % (4 ) 107 96 % Total fixed maturities $ (62 ) $ 2,430 98 % $ (35 ) $ 1,686 98 % December 31, 2019 Fixed maturities: U.S. Government and government agencies $ — $ — — % $ — $ — — % States, municipalities and political subdivisions (1 ) 105 99 % — 5 100 % Residential MBS (2 ) 315 99 % (1 ) 15 94 % Commercial MBS — 11 100 % — — — % Collateralized loan obligations (9 ) 995 99 % (21 ) 1,363 98 % Other asset-backed securities (11 ) 838 99 % (5 ) 91 95 % Corporate and other (11 ) 937 99 % (7 ) 202 97 % Total fixed maturities $ (34 ) $ 3,201 99 % $ (34 ) $ 1,676 98 % At September 30, 2021, the gross unrealized losses on fixed maturities of $92 million relate to 320 securities (unaudited). Investment grade securities (as determined by nationally recognized rating agencies) represented approximately 65% of the gross unrealized loss and 84% of the fair value. At December 31, 2020, the gross unrealized losses on fixed maturities of $97 million relate to 568 securities. Investment grade securities (as determined by nationally recognized rating agencies) represented approximately 76% of the gross unrealized loss and 87% of the fair value. To evaluate fixed maturities for expected credit losses (impairment), management considers whether the unrealized loss is credit-driven or a result of changes in market interest rates, the extent to which fair value is less than cost basis, historical operating, balance sheet and cash flow data from the issuer, third party research and communications with industry specialists and discussions with issuer management. GALIC analyzes its MBS securities for expected credit losses (impairment) each quarter based upon expected future cash flows. Management estimates expected future cash flows based upon its knowledge of the MBS market, cash flow projections (which reflect loan to collateral values, subordination, vintage and geographic concentration) received from independent sources, implied cash flows inherent in security ratings and analysis of historical payment data. Management believes GALIC will recover its cost basis (net of any allowance) in the securities with unrealized losses and that GALIC has the ability to hold the securities until they recover in value and had no intent to sell them at September 30, 2021. See Note A — “Accounting Policies — Credit Losses on Financial Instruments,” Structured Corporate and Total Balance at January 1, 2020 $ — $ — $ — Impact of adoption of new accounting policy — — — Initial allowance for purchased securities with credit deterioration 1 — 1 Provision for expected credit losses on securities with no previous allowance 28 23 51 Additions (reductions) to previously recognized expected credit losses (5 ) (14 ) (19 ) Reductions due to sales or redemptions — (5 ) (5 ) Balance at December 31, 2020 $ 24 $ 4 $ 28 Balance at January 1, 2021 $ 24 $ 4 $ 28 Impact of adoption of new accounting policy — — — Initial allowance for purchased securities with credit deterioration — — — Provision for expected credit losses on securities with no previous allowance — 1 1 Additions (reductions) to previously recognized expected credit losses (7 ) (1 ) (8 ) Reductions due to sales or redemptions (2 ) (4 ) (6 ) Balance at September 30, 2021 (unaudited) $ 15 $ — $ 15 (*) Includes mortgage-backed securities, collateralized loan obligations and other asset-backed securities. In 2020, GALIC purchased two 8 6 The table below sets forth the scheduled maturities of available for sale fixed maturities as of December 31, 2020 (dollars in millions). Securities with sinking funds are reported at average maturity. Actual maturities may differ from contractual maturities because certain securities may be called or prepaid by the issuers. September 30, 2021 December 31, 2020 Amortized Fair Value Amortized Fair Value Cost, net (*) Amount % Cost, net (*) Amount % (unaudited) (unaudited) Maturity One year or less $ 1,577 $ 1,617 4 % $ 1,975 $ 1,995 6 % After one year through five years 8,006 8,652 24 % 7,761 8,442 25 % After five years through ten years 7,032 7,860 22 % 8,198 9,402 28 % After ten years 3,192 3,478 10 % 2,458 2,779 8 % 19,807 21,607 60 % 20,392 22,618 67 % Collateralized loan obligations and other ABS (average life of approximately 4 years) 11,248 11,356 31 % 8,568 8,667 25 % MBS (average life of approximately 3 1/2 2,933 3,120 9 % 2,610 2,838 8 % Total $ 33,988 $ 36,083 100 % $ 31,570 $ 34,123 100 % (*) Amortized cost, net of allowance for expected credit losses Certain risks are inherent in fixed maturity securities, including loss upon default, price volatility in reaction to changes in interest rates, and general market factors and risks associated with reinvestment of proceeds due to prepayments or redemptions in a period of declining interest rates. There were no investments in individual issuers that exceeded 10 Net Investment Income Nine months ended Year ended December 31, 2021 2020 2020 2019 2018 (unaudited) (unaudited) Investment income: Fixed maturities $ 1,059 $ 1,216 $ 1,577 $ 1,600 $ 1,450 Equity securities: Dividends 14 22 28 34 30 Change in fair value (*) 36 3 17 17 13 Equity in earnings of partnerships and similar investments 169 14 48 90 96 Mortgage loans 43 40 54 43 45 Policy loans 6 7 9 9 10 Real estate and other 27 (7 ) 7 36 26 Gross investment income 1,354 1,295 1,740 1,829 1,670 Investment expenses (24 ) (12 ) (23 ) (16 ) (13 ) Net investment income $ 1,330 $ 1,283 $ 1,717 $ 1,813 $ 1,657 (*) Although the change in the fair value of the majority of GALIC’s equity securities is recorded in realized gains (losses) on securities, GALIC records holding gains and losses in net investment income on equity securities classified as “trading” under previous guidance and on a small portfolio of limited partnership and similar investments that do not qualify for the equity method of accounting. For the first five months of 2021 and in prior years GALIC’s investment portfolio was managed by a subsidiary of AFG. For the last four months of 2021 GALIC’s investment portfolio is managed by a subsidiary of MassMutual. Investment expenses, which included investment management fees charged by both subsidiaries, were $19 million for the nine months ended September 30, 2021 (unaudited) and $6 million for the nine months ended September 30, 2020 (unaudited) , $8 million for 2020, $11 million for 2019 and $7 million for 2018. Realized gains (losses) and changes in unrealized appreciation (depreciation) included in AOCI related to fixed maturity securities are summarized as follows (in millions): Nine months ended September 30, 2021 (unaudited) Nine months ended September 30, 2020 (unaudited) Realized gains (losses) Realized gains (losses) Before Impairments Total Change in Before Impairments Total Change in Fixed maturitie s $ 21 $ 7 $ 28 $ (458 ) $ 38 $ (43 ) $ (5 ) $ 933 Equity securities 84 — 84 — (111 ) — (111 ) — Mortgage loans and other investments 3 — 3 — 3 — 3 — Other (*) (1 ) (2 ) (3 ) 200 (6 ) 14 8 (526 ) Total pretax 107 5 112 (258 ) (76 ) (29 ) (105 ) 407 Tax effects (22 ) (1 ) (23 ) 55 16 6 22 (85 ) Net of tax $ 85 $ 4 $ 89 $ (203 ) $ (60 ) $ (23 ) $ (83 ) $ 322 2020 2019 Realized gains (losses) Realized gains (losses) Before Impairments Total Change in Before Impairments Total Change in Fixed maturities $ 461 $ (32 ) $ 429 $ 798 $ 19 $ (21 ) $ (2 ) $ 1,647 Equity securities (27 ) — (27 ) — 122 — 122 — Mortgage loans and other investments 3 — 3 — 2 — 2 — Other (*) (51 ) 11 (40 ) (360 ) (1 ) 11 10 (835 ) Total pretax 386 (21 ) 365 438 142 (10 ) 132 812 Tax effects (81 ) 4 (77 ) (92 ) (30 ) 2 (28 ) (171 ) Net of tax $ 305 $ (17 ) $ 288 $ 346 $ 112 $ (8 ) $ 104 $ 641 2018 Realized gains (losses) Before Impairments Total Change in Fixed maturitie s $ 5 $ (21 ) $ (16 ) $ (1,057 ) Equity securities (107 ) — (107 ) — Mortgage loans and other investments — — — — Other (*) 11 7 18 502 Total pretax (91 ) (14 ) (105 ) (555 ) Tax effects 19 3 22 117 Net of tax $ (72 ) $ (11 ) $ (83 ) $ (438 ) (*) Primarily adjustments to deferred policy acquisition costs and reserves related to the annuity business. All equity securities other than those accounted for under the equity method are carried at fair value through net earnings. GALIC recorded net holding gains (losses) on equity securities during 2020 and 2019 on securities that were still owned at December 31 as follows (in millions): Nine months ended September 30, Year ended December 31, 2021 2020 2020 2019 (unaudited) (unaudited) Included in realized gains (losses) $ 50 $ (126 ) $ (25 ) $ 123 Included in net investment income 35 3 11 17 $ 85 $ (123 ) $ (14 ) $ 140 Gross realized gains and losses (excluding impairment write-downs and mark-to-market (Unaudited) Nine months ended September 30, Year ended December 31, 2021 2020 2020 2019 2018 Gross gains $ 82 $ 69 $ 514 $ 30 $ 17 Gross losses (1 ) (30 ) (51 ) (16 ) (12 ) |
Derivatives
Derivatives | 9 Months Ended |
Sep. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | F. Derivatives As discussed under “Derivatives” Note A — “Accounting Policies,” Derivatives That Do Not Qualify for Hedge Accounting September 30, 2021 December 31, December 31, Derivative Balance Sheet Line Asset Liability Asset Liability Asset Liability (unaudited) (unaudited) MBS with embedded derivatives Fixed maturities $ 117 $ — $ 137 $ — $ 74 $ — Public company warrants Equity securities — — — — — — Fixed-indexed and registered index-linked annuities (embedded derivative) Annuity benefits accumulated — 4,208 — 3,933 — 3,730 Equity index call options Equity index call options 646 — 825 — 924 — Equity index put options Other liabilities — (14 ) — 5 — 1 Reinsurance contract (embedded derivative) Other liabilities — 5 — 5 — 4 $ 763 $ 4,199 $ 962 $ 3,943 $ 998 $ 3,735 The MBS with embedded derivatives consist of primarily interest-only and principal-only MBS. GALIC records the entire change in the fair value of these securities in earnings. These investments are part of GALIC’s overall investment strategy and represent a small component of GALIC’s overall investment portfolio. Warrants to purchase shares of publicly traded companies, which represent a small component of GALIC’s overall investment portfolio, are considered to be derivatives that are required to be carried at fair value through earnings. GALIC’s fixed-indexed and registered index-linked annuities provide policyholders with a crediting rate tied, in part, to the performance of an existing stock market or other financial index. GALIC attempts to mitigate the risk in the index-based component of these products through the purchase and sale of call and put options on the appropriate index. GALIC receives collateral from certain counterparties to support its purchased call option assets (net of collateral required under put option contracts with the same counterparties). This collateral ($318 million at September 30, 2021 (unaudited), $351 million at December 31, 2020 and $577 million at December 31, 2019) is shown as funds held as collateral in GALIC’s Balance Sheet with an offsetting liability to return the collateral, which is included in liability for funds held as collateral. GALIC’s strategy is designed so that the net change in the fair value of the call and put options will generally offset the economic change in the net liability from the index participation. Both the index-based component of the annuities (an embedded derivative) and the related call and put options are considered derivatives that must be adjusted for changes in fair value through earnings each period. The fair values of these derivatives are impacted by actual and expected stock market performance and interest rates as well as other factors. Fluctuations in certain of these factors, such as changes in interest rates and the performance of the stock market, are not economic in nature for current reporting period but rather impact the timing of reported results. As discussed under “Reinsurance” Note A The following table summarizes the gains (losses) included in GALIC’s Statement of Earnings for changes in the fair value of derivatives that do not qualify for hedge accounting (in millions): Nine months ended Year ended December 31, Derivative Statement of Earnings Line 2021 2020 2020 2019 2018 (unaudited) (unaudited) MBS with embedded derivative s Realized gains (losses) on securities $ (18 ) $ 2 $ (2 ) $ 5 $ (4 ) Public company warrants Realized gains (losses) on securities — — — — (3 ) Fixed-indexed and registered index-linked annuities (embedded derivative) (*) Annuity benefits 296 41 (283 ) (919 ) 204 Equity index call options Annuity benefits 282 (42 ) 223 804 (298 ) Equity index put options Annuity benefits 5 1 3 2 (1 ) Reinsurance contract (embedded derivative) Net investment income — — (1 ) (2 ) 2 $ 565 $ 2 $ (60 ) $ (110 ) $ (100 ) (*) The change in fair value of the embedded derivative includes a favorable adjustment related to unlocking of actuarial assumptions of $240 million in 2020 and $181 million in 2019 and losses of $44 million in 2018. Derivatives Designated and Qualifying as Cash Flow Hedges Under the terms of the swaps, GALIC receives fixed-rate interest payments in exchange for variable interest payments based on short-term LIBOR. The notional amounts of the interest rate swaps generally decline over each swap’s respective life (the swaps expire between December 2023 and June 2030) in anticipation of the expected decline in GALIC’s portfolio of fixed maturity securities with floating interest rates based on short-term LIBOR. The total outstanding notional amount of GALIC’s interest rate swaps was $1.54 billion at September 30, 2021 (unaudited) compared to $1.63 billion at December 31, 2020 and $1.98 billion at December 31, 2019, reflecting the scheduled amortization discussed above, the termination of a a |
Deferred Policy Acquisition Cos
Deferred Policy Acquisition Costs | 9 Months Ended |
Sep. 30, 2021 | |
Deferred Policy Acquisition Costs Disclosures [Abstract] | |
Deferred Policy Acquisition Costs | G. Deferred Policy Acquisition Costs A progression of deferred policy acquisition costs is presented below (in millions): Deferred Sales PVFP Subtotal Unrealized (*) Total Balance at December 31, 2017 $ 1,214 $ 102 $ 49 $ 1,365 $ (422 ) $ 943 Additions 263 2 — 265 — 265 Amortization: Periodic amortization (237 ) (19 ) (7 ) (263 ) — (263 ) Annuity unlocking 29 — — 29 — 29 Included in realized gains 14 1 — 15 — 15 Other — — — — — — Change in unrealized — — — — 392 392 Balance at December 31, 2018 1,283 86 42 1,411 (30 ) 1,381 Additions 206 2 — 208 — 208 Amortization: Periodic amortization (120 ) (13 ) (6 ) (139 ) — (139 ) Annuity unlocking (76 ) (1 ) — (77 ) — (77 ) Included in realized gains 8 1 — 9 — 9 Change in unrealized — — — — (669 ) (669 ) Balance at December 31, 2019 1,301 75 36 1,412 (699 ) 713 Additions 155 2 — 157 — 157 Amortization: Periodic amortization (126 ) (9 ) (6 ) (141 ) — (141 ) Annuity unlocking (118 ) 4 — (114 ) — (114 ) Included in realized gains (42 ) 1 — (41 ) — (41 ) Change in unrealized — — — — (272 ) (272 ) Balance at December 31, 2020 $ 1,170 $ 73 $ 30 $ 1,273 $ (971 ) $ 302 Additions (unaudited) 185 — — 185 — 185 Amortization: Periodic amortization (unaudited) (182 ) (6 ) (4 ) (192 ) — (192 ) Annuity unlocking (unaudited) — — — — — — Included in realized gains (unaudited) (3 ) — — (3 ) — (3 ) Change in unrealized (unaudited) — — — — 182 182 Balance at September 30, 2021 (unaudited) $ 1,170 $ 67 $ 26 $ 1,263 $ (789 ) $ 474 (*) Adjustments to DPAC related to net unrealized gains/losses on securities and cash flow hedges. Annuity unlocking was evaluated in the first nine months of 2021 and it was determined that no adjustment was needed. The present value of future profits (“PVFP”) amounts in the table above are net of $ million and $ million of accumulated amortization at September 30, 2021 (unaudited) and December 31, 2020, respectively. During each of the next five years, the PVFP is expected to decrease at a rate of approximately one-seventh of the balance at the beginning of each respective year. |
Shareholder's Equity
Shareholder's Equity | 9 Months Ended |
Sep. 30, 2021 | |
Stockholders' Equity Note [Abstract] | |
Shareholder's Equity | H. Shareholder ’ s Equity Capital Contributions from Parent non-cash non-cash Accumulated Other Comprehensive Income, Net of Tax (“AOCI”) Other Comprehensive Income (Loss) AOCI Pretax Tax Net Other AOCI Nine months ended September 30, 2021 (unaudited) Net unrealized gains (losses) on securities: Unrealized holding losses on securities arising during the period $ (233 ) $ 49 $ (184 ) Reclassification adjustment for realized (gains) losses included in net earnings (a) (25 ) 6 (19 ) Total net unrealized gains (losses) on securities (b) $ 1,029 (258 ) 55 (203 ) $ — $ 826 Net unrealized losses on cash flow hedges 41 (24 ) 5 (19 ) — 22 Total $ 1,070 $ (282 ) $ 60 $ (222 ) $ — $ 848 Year ended December 31, 2020 Net unrealized gains on securities: Unrealized holding gains on securities arising during the period $ 834 $ (175 ) $ 659 Reclassification adjustment for realized (gains) losses included in net earnings (a) (396 ) 83 (313 ) Total net unrealized gains on securities $ 683 438 (92 ) 346 $ — $ 1,029 Net unrealized gains (losses) on cash flow hedges 17 30 (6 ) 24 — 41 Total $ 700 $ 468 $ (98 ) $ 370 $ — $ 1,070 Year ended December 31, 2019 Net unrealized gains (losses) on securities: Unrealized holding losses on securities arising during the period $ 828 $ (174 ) $ 654 Reclassification adjustment for realized (gains) losses included in net earnings (a) (16 ) 3 (13 ) Total net unrealized gains (losses) on securities $ 42 812 (171 ) 641 $ — $ 683 Net unrealized gains (losses) on cash flow hedges (11 ) 36 (8 ) 28 — 17 Total $ 31 $ 848 $ (179 ) $ 669 $ — $ 700 Year ended December 31, 2018 Net unrealized gains on securities: Unrealized holding gains on securities arising during the period $ (561 ) $ 118 $ (443 ) Reclassification adjustment for realized (gains) losses included in net earnings (a) 6 (1 ) 5 Total net unrealized gains on securities $ 570 (555 ) 117 (438 ) $ (90 ) $ 42 Net unrealized losses on cash flow hedges (13 ) 2 — 2 — (11 ) Total $ 557 $ (553 ) $ 117 $ (436 ) $ (90 ) $ 31 (a) The reclassification adjustment out of net unrealized gains on securities affected the following lines in GALIC’s Statement of Earnings: OCI component Affected line in the statement of earnings Pretax Realized gains (losses) on securities Tax Provision for income taxes (b) On January 1, 2018, GALIC adopted new guidance that requires all equity securities other than those accounted for under the equity method to be reported at fair value with holding gains and losses recognized in net earnings. At the date of adoption, the $90 million net unrealized gain on equity securities classified as available for sale (with unrealized holding gains and losses reported in AOCI) under the prior guidance was reclassified from AOCI to retained earnings as the cumulative effect of an accounting change. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | I. Income Taxes The following is a reconciliation of income taxes at the statutory rate 21% to the provision for income taxes as shown in GALIC’s Statement of Earnings (dollars in millions): Nine months ended September 30, Year ended December 31, 2021 2020 2020 2019 2018 Amount % of Amount % of Amount % of Amount % of Amount % of (unaudited) (unaudited) Earnings before income taxes (“EBT”) $ 417 $ (22 ) $ 529 $ 497 $ 256 Income taxes at statutory rate $ 88 21 % $ (5 ) (23 %) $ 111 21 % $ 104 21 % $ 54 21 % Effect of permanent items 19 5 % (3 ) (13 %) (4 ) (1 %) (2 ) — % (7 ) (3 %) Provision for income taxes as shown in the statement of earnings $ 107 26 % $ (8 ) (36 )% $ 107 20 % $ 102 21 % $ 47 18 % GALIC’s 2013 — 2020 tax years remain subject to examination by the IRS. GALIC did not have any earnings or losses subject to tax in foreign jurisdictions for the years ended December 31, 2020, 2019 and 2018. The total income tax provision consists of (in millions): 2020 2019 2018 Current taxes: Federal $ 60 $ 152 $ 130 State 2 4 3 Deferred taxes: Federal 45 (54 ) (86 ) Provision for income taxes $ 107 $ 102 $ 47 Deferred income tax assets and liabilities reflect temporary differences between the carrying amounts of assets and liabilities recognized for financial reporting purposes and the amounts recognized for tax purposes. The significant components of deferred tax assets and liabilities included in GALIC’s Balance Sheet at December 31 were as follows (in millions): 2020 2019 Excluding Impact of Total Excluding Impact of Total Deferred tax assets: Insurance claims and reserve s $ 531 $ 68 $ 599 $ 601 $ 46 $ 647 Other, net 10 (2 ) 8 7 (2 ) 5 Total deferred tax assets 541 66 607 608 44 652 Deferred tax liabilities: Investment securities (97 ) (537 ) (634 ) (78 ) (369 ) (447 ) Deferred policy acquisition costs (212 ) 197 (15 ) (236 ) 143 (93 ) Insurance claims and reserves transition liability (57 ) — (57 ) (68 ) — (68 ) Total deferred tax liabilities (366 ) (340 ) (706 ) (382 ) (226 ) (608 ) Net deferred tax asset (liability) $ 175 $ (274 ) $ (99 ) $ 226 $ (182 ) $ 44 The likelihood of realizing deferred tax assets is reviewed periodically. There was no valuation allowance against deferred tax assets as of December 31, 2020 and 2019. GALIC did not have a liability for uncertain tax positions during 2020, 2019 or 2018. Cash payments for income taxes, net of refunds, were $90 million, $163 million and $106 million for 2020, 2019 and 2018, respectively. |
Contingencies
Contingencies | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | J. Contingencies GALIC and its subsidiaries are involved in litigation from time to time, generally arising in the ordinary course of business. This litigation may include, but is not limited to, general commercial disputes, lawsuits brought by policyholders, employment matters, reinsurance collection matters and actions challenging certain business practices. None of these matters are expected to have a material adverse impact on GALIC’s results of operations or financial condition. |
Insurance
Insurance | 9 Months Ended |
Sep. 30, 2021 | |
Insurance [Abstract] | |
Insurance | K. Insurance Securities owned by GALIC, having a carrying value of approximately $30 million at December 31, 2020, were on deposit as required by regulatory authorities. FHLB Funding Agreements In 2020, the FHLB advanced GALIC $200 million and GALIC repaid $165 million to the FHLB. In 2019, GALIC refinanced the terms on advances totaling $610 million. At September 30, 2021 (unaudited) and December 31, 2020, GALIC had $0.40 billion and $1.13 billion, respectively, in outstanding advances from the FHLB (included in annuity benefits accumulated), bearing interest at rates ranging from 0.30% to 1.35% (average rate of 0.83% at September 30, 2021 (unaudited) and 0.53% at December 31, 2020). While these advances must be repaid between 2021 and 2025 ($200 million in 2021 and $200 million in 2025), GALIC has the option to prepay all or a portion of the advances. GALIC has invested the proceeds from the advances in fixed maturity securities with similar expected lives as the advances for the purpose of earning a spread over the interest payments due to the FHLB. The advances on these agreements are collateralized by fixed maturity investments, which have a total fair value of $1.57 billion and $1.37 billion (included in available for sale fixed maturity securities) at September 30, 2021 (unaudited) and December 31, 2020, respectively. Interest credited on the funding agreements, which is included in annuity benefits, was $4 million and $9 million in the first nine months of 2021 and 2020 (both unaudited) , $11 million in 2020 and $27 million in 2019. Statutory Information Net Earnings Capital and Surplus 2020 2019 2018 2020 2019 GALIC consolidated life insurance companies $ 209 $ 34 $ 802 $ 2,897 $ 2,868 In the fourth quarter of 2018, GALIC entered into a reinsurance treaty with Hannover Life Reassurance Company of America that transfers the risk of certain surrender activity in GALIC’s fixed-indexed annuity business. This treaty meets the statutory risk transfer rules and resulted in increases in statutory surplus (through an after-tax The National Association of Insurance Commissioners’ (“NAIC”) model law for risk based capital (“RBC”) applies to life insurance companies. RBC formulas determine the amount of capital that an insurance company needs so that it has an acceptable expectation of not becoming financially impaired. Companies below specific trigger points or ratios are subject to regulatory action. At December 31, 2020 and 2019, the capital ratios of GALIC and its life insurance companies substantially exceeded the RBC requirements. GALIC did not use any prescribed or permitted statutory accounting practices that differed from the NAIC statutory accounting practices at December 31, 2020 or 2019. GALIC paid dividends to GAFRI totaling $285 million, $140 million and $60 million in 2020, 2019 and 2018, respectively. The maximum amount of dividends that can be paid to shareholders in 2021 by life insurance companies domiciled in the State of Ohio without prior approval of the Insurance Commissioner is the greater of 10% of statutory surplus as regards to policyholders or statutory net earnings as of the preceding December 31, but only to the extent of statutory earned surplus as of the preceding December 31. The maximum amount of dividends payable in 2021 by GALIC without prior approval is $290 million, based on 10% of statutory surplus. The maximum amount of dividends receivable from GALIC’s subsidiaries in 2021 without prior approval is $34 million. Reinsurance In the fourth quarter of 2020, GALIC entered into a block reinsurance agreement with Commonwealth. Under the terms of the agreement, GALIC ceded $5.96 billion of in force traditional fixed and indexed annuities, representing approximately 15% of its in force business, and transferred related investments to Commonwealth. The transaction will be accounted for using the deposit method and the $180 million loss on the transaction was deferred and will be recognized over the expected life of the underlying annuity contracts (7-10 Under both the flow and block reinsurance agreements, Commonwealth is required to maintain collateral in trusts in excess of amounts owed to GALIC. Under these agreements, $492 million of gross annuity receipts were ceded and there were $206 million of ceded annuity surrenders, benefits and withdrawals. GALIC received $39 million of commission and expense allowances in 2020 and annuity benefits expense was reduced by $46 million. GALIC has reinsured approximately $5.42 billion of its $8.33 billion in face amount of life insurance at December 31, 2020 compared to $6.23 billion of its $9.53 billion in face amount of life insurance at December 31, 2019. Life written premiums ceded were $19 million, $20 million and $22 million for 2020, 2019 and 2018, respectively. Reinsurance recoveries on ceded life policies were $28 million, $32 million and $41 million for 2020, 2019 and 2018, respectively. GALIC would remain liable to its insureds regardless of whether a reinsurer is able to meet its obligations. Recoverables from Reinsurers and Premiums Receivable Note A — “Accounting Policies — Credit Losses on Financial Instruments,” Recoverables from Reinsurers Balance at January 1 $ — Impact of adoption of new accounting policy 5 Provision for expected credit losses 2 Balance at December 31 $ 7 At December 31, 2020, GALIC had no allowance for expected credit losses on premiums receivable. Fixed Annuities 2020 2019 Expected death and annuitization $ 260 $ 232 Guaranteed withdrawal benefits 817 625 Accrued persistency and premium bonuses — 1 Variable Annuities |
Additional Information
Additional Information | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Additional Information | L. Additional Information Related Parties Financial Instruments — Unfunded Commitments off-balance-sheet Benefit Plans |
Supplementary Insurance Informa
Supplementary Insurance Information | 9 Months Ended |
Sep. 30, 2021 | |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Abstract] | |
Supplementary Insurance Information | GREAT AMERICAN LIFE INSURANCE COMPANY AND SUBSIDIARIES SUPPLEMENTARY INSURANCE INFORMATION THREE YEARS ENDED DECEMBER 31, 2020 (IN MILLIONS) Segment Deferred Reserves for Net Net Benefits, Amortization Other 2020 Annuity $ 286 $ 42,573 $ — $ 1,700 $ 1,192 $ 246 $ 188 Run-off 16 610 22 17 40 3 10 Total $ 302 $ 43,183 $ 22 $ 1,717 $ 1,232 $ 249 $ 198 2019 Annuity $ 694 $ 40,406 $ — $ 1,792 $ 1,151 $ 198 $ 188 Run-off 19 612 22 21 36 4 7 Total $ 713 $ 41,018 $ 22 $ 1,813 $ 1,187 $ 202 $ 195 2018 Annuity $ 1,358 $ 36,616 $ — $ 1,638 $ 998 $ 211 $ 174 Run-off 23 635 24 19 37 4 11 Total $ 1,381 $ 37,251 $ 24 $ 1,657 $ 1,035 $ 215 $ 185 |
Accounting Policies (Policies)
Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated financial statements include the accounts of Great American Life Insurance Company and its subsidiaries (“GALIC” or the “Company”). As of May 28, 2021 (unaudited) GALIC is a direct wholly-owned subsidiary of Glidepath Holdings Inc., a financial services holding company wholly-owned by Massachusetts Mutual Life Insurance Company. Prior to that date GALIC was a direct wholly-owned subsidiary of Great American Financial Resources, Inc. (“GAFRI”), a financial services holding company wholly-owned by American Financial Group, Inc. (“AFG”). Certain reclassifications have been made to prior years to conform to the current year’s presentation. All significant intercompany balances and transactions have been eliminated. The results of operations of companies since their for m The preparation of the financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Changes in circumstances could cause actual results to differ materially from those estimates. |
Fair Value Measurements | Fair Value Measurements use in pricing the asset or liability (“inputs”) are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect GALIC’s assumptions about the assumptions market participants would use in pricing the asset or liability. GALIC did not have any material nonrecurring fair value measurements the first nine months ended September 30, 2021 (unaudited) or in 2020 or 2019. |
Credit Losses on Financial Instruments | Credit Losses on Financial Instruments 2016-13, Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments The updated guidance also amended the current other-than-temporary impairment model for available for sale debt securities by requiring the recognition of impairments relating to credit losses through an allowance and limits the amount of credit loss to the difference between a security’s amortized cost basis and its fair value. Subsequent increases or decreases in expected credit losses will be recorded immediately in net earnings through realized gains (losses). |
Investments | Investments 2016-01, Holding gains and losses on equity securities carried at fair value are generally recorded in realized gains (losses) on securities. However, GALIC records holding gains and losses on securities classified as “trading” under previous guidance, its small portfolio of limited partnerships and similar investments carried at fair value and certain other securities classified at purchase as “fair value through net investment income” in net investment income. Fixed maturity securities classified as “available for sale” are reported at fair value with unrealized gains and losses included in AOCI in GALIC’s Balance Sheet. Fixed maturity securities classified as “trading” are reported at fair value with changes in unrealized holding gains or losses during the period included in net investment income. Mortgage loans (net of any allowance) and policy loans are carried primarily at the aggregate unpaid balance. Premiums and discounts on fixed maturity securities are amortized using the effective interest method. Mortgage-backed securities (“MBS”) are amortized over a period based on estimated future principal payments, including prepayments. Prepayment assumptions are reviewed periodically and adjusted to reflect actual prepayments and changes in expectations. Limited partnerships and similar investments are generally accounted for using the equity method of accounting. Under the equity method, GALIC records its share of the earnings or losses of the investee based on when they are reported by the investee in its financial statements rather than in the period in which the investee declares a dividend. GALIC’s share of the earnings or losses from equity method investments is generally recorded on a quarter lag due to the timing of the receipt of the investee’s financial statements. GALIC’s equity in the earnings (losses) of limited partnerships and similar investments is included in net investment income. Realized gains or losses on the disposal of fixed maturity securities are determined on the specific identification basis. When a decline in the value of an available for sale fixed maturity is considered to be other-than-temporary at the balance sheet date, an allowance for credit losses (impairment), including any write-off “Credit Losses on Financial Instruments” |
Derivatives | Derivatives To qualify for hedge accounting, at the inception of a derivative contract, GALIC formally documents the relationship between the terms of the hedge and the hedged items and its risk management objective. This documentation includes defining how hedge effectiveness and ineffectiveness will be measured on a retrospective and prospective basis. Changes in the fair value of derivatives that are designated and qualify as highly effective cash flow hedges are recorded in AOCI and are reclassified into earnings when the variability of the cash flows from the hedged items impacts earnings. When the change in the fair value of a qualifying cash flow hedge is included in earnings, it is included in the same line item in the statement of earnings as the cash flows from the hedged item. GALIC uses interest rate swaps that are designated and qualify as highly effective cash flow hedges to mitigate interest rate risk related to certain floating-rate securities included in GALIC’s portfolio of fixed maturity securities. |
Funds Held as Collateral | Funds Held as Collateral |
Reinsurance | Reinsurance |
Deferred Policy Acquisition Costs (''DPAC'') | Deferred Policy Acquisition Costs (“DPAC”) DPAC related to annuities is deferred to the extent deemed recoverable and amortized, with interest, in relation to the present value of actual and expected gross profits on the policies. Expected gross profits consist principally of estimated future investment margin (estimated future net investment income less interest credited on policyholder funds) and surrender, mortality, and other life and annuity policy charges, less death, annuitization and guaranteed withdrawal benefits in excess of account balances and estimated future policy administration expenses. To the extent that realized gains and losses result in adjustments to the amortization of DPAC related to annuities, such adjustments are reflected as components of realized gains (losses) on securities. DPAC related to traditional life and health insurance is amortized over the expected premium paying period of the related policies, in proportion to the ratio of annual premium revenues to total anticipated premium revenues. See “Life, Accident and Health Reserves” DPAC includes the present value of future profits on business in force of annuity and life, accident and health insurance companies acquired (“PVFP”). PVFP represents the portion of the costs to acquire companies that is allocated to the value of the right to receive future cash flows from insurance contracts existing at the date of acquisition. PVFP is amortized with interest in relation to expected gross profits of the acquired policies for annuities and universal life products and in relation to the premium paying period for traditional life and health insurance products. DPAC and certain other balance sheet amounts related to annuity and life businesses are also adjusted, net of tax, for the change in expense that would have been recorded if the unrealized gains (losses) from securities had actually been realized. These adjustments are included in unrealized gains (losses) on marketable securities, a component of AOCI in GALIC’s Balance Sheet. |
Annuity Benefits Accumulated | Annuity Benefits Accumulated For certain products, annuity benefits accumulated also includes reserves for accrued persistency and premium bonuses, guaranteed withdrawals and excess benefits expected to be paid on future deaths and annuitizations (“EDAR”). The liabilities for EDAR and guaranteed withdrawals are accrued for and modified using assumptions consistent with those used in determining DPAC and DPAC amortization, except that amounts are determined in relation to the present value of total expected assessments. Total expected assessments consist principally of estimated future investment margin, surrender, mortality, and other life and annuity policy charges, and unearned revenues once they are recognized as income. Annuity benefits accumulated also includes amounts advanced from the Federal Home Loan Bank of Cincinnati. |
Unearned Revenue | Unearned Revenue |
Life, Accident and Health Reserves | Life, Accident and Health Reserves For long-duration contracts (such as traditional life and long-term care policies), loss recognition occurs when, based on current expectations as of the measurement date, existing contract liabilities plus the present value of future premiums (including reasonably expected rate increases) are not expected to cover the present value of future claims payments and related settlement and maintenance costs (excluding overhead) as well as unamortized acquisition costs. If a block of business is determined to be in loss recognition, a charge is recorded in earnings in an amount equal to the excess of the present value of expected future claims costs and unamortized acquisition costs over existing reserves plus the present value of expected future premiums (with no provision for adverse deviation). The charge is recorded first to reduce unamortized acquisition costs and then as an additional reserve (if unamortized acquisition costs have been reduced to zero). In addition, reserves for traditional life policies are subject to adjustment for loss recognition charges that would have been recorded if the unrealized gains (losses) from securities had actually been realized. This adjustment is included in unrealized gains (losses) on marketable securities, a component of AOCI in GALIC’s Balance Sheet. |
Variable Annuity Assets and Liabilities | Variable Annuity Assets and Liabilities GALIC’s variable annuity contracts contain a guaranteed minimum death benefit (“GMDB”) to be paid if the policyholder dies before the annuity payout period commences. In periods of declining equity markets, the GMDB may exceed the value of the policyholder’s account. A GMDB liability is established for future excess death benefits using assumptions together with a range of reasonably possible scenarios for investment fund performance that are consistent with DPAC capitalization and amortization assumptions. |
Leases | Leases 2016-02, • exclude leases with a term of 12 months or less from the calculation of lease assets and liabilities, • not separate lease and non-lease • for contracts existing at the date of adoption — not reassess whether a contract is a lease or contains a lease, how initial direct costs were accounted for or whether the lease is an operating or finance lease, and • use hindsight to determine the lease term for leases existing at the date of adoption. GALIC did not have any material leases at September 30, 2021 (unaudited) or in 2020 or 2019. |
Noncontrolling Interests | Noncontrolling Interests |
Premium Recognition | Premium Recognition |
Income Taxes | Income Taxes year-end, Beginning in June of 2021 (unaudited) GALIC and its subsidiaries entered into a separate intercompany tax allocation agreement. Pursuant to the agreement, each company’s tax expense is determined based upon its inclusion in the consolidated tax return of GALIC and its includable subsidiaries. Estimated payments are made quarterly during the year. Following year-end, o Deferred income taxes are calculated using the liability method. Under this method, deferred income tax assets and liabilities are determined based on differences between financial reporting and tax bases and are measured using enacted tax rates. A valuation allowance is established to reduce total deferred tax assets to an amount that will more likely than not be realized. The effect of a change in tax rates on deferred tax assets and liabilities is recorded in net earnings in the period that includes the enactment date. GALIC recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained under examination by the appropriate taxing authority. Interest and penalties on GALIC’s reserve for uncertain tax positions are recognized as a component of tax expense. |
Benefit Plans | Benefit Plans |
Statement of Cash Flows | Statement of Cash Flows |
Segments of Operations (Tables)
Segments of Operations (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Segment reporting information, by segment | The following tables (in millions) show GALIC’s assets, revenues and earnings before income taxes by segment. 2020 2019 2018 Assets Annuity $ 47,886 $ 45,217 $ 40,115 Run-off 685 676 686 Total assets $ 48,571 $ 45,893 $ 40,801 Nine months ended Year ended December 31, 2021 2020 2020 2019 2018 (unaudited) (unaudited) Revenues Annuity: Net investment income $ 1,316 $ 1,268 $ 1,699 $ 1,792 $ 1,638 Other income 76 73 97 108 108 Total annuity 1,392 1,341 1,796 1,900 1,746 Run-off 33 35 47 49 50 Total revenues before realized gains (losses) 1,425 1,376 1,843 1,949 1,796 Realized gains (losses) on securities 112 (105 ) 365 132 (105 ) Total revenues $ 1,537 $ 1,271 $ 2,208 $ 2,081 $ 1,691 Nine months ended Year ended December 31, 2021 2020 2020 2019 2018 (unaudited) (unaudited) Earnings Before (Loss) Income Taxes Annuity $ 303 $ 89 $ 170 $ 363 $ 363 Run-off 2 (6 ) (6 ) 2 (2 ) Total earnings before realized gains (losses) and income taxes 305 83 164 365 361 Realized gains (losses) on securities 112 (105 ) 365 132 (105 ) Total earnings (loss) before income taxes $ 417 $ (22 ) $ 529 $ 497 $ 256 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Assets and liabilities measured at fair value | Assets and liabilities measured and carried at fair value in the financial statements are summarized below (in millions): Level 1 Level 2 Level 3 Total September 30, 2021 (unaudited) Assets: Available for sale (“AFS”) fixed maturities: U.S. Government and government agencies $ — $ 25 $ — $ 25 States, municipalities and political subdivisions — 2,885 59 2,944 Foreign government — 34 — 34 Residential MBS — 2,516 2 2,518 Commercial MBS — 593 9 602 Collateralized loan obligations — 3,290 — 3,290 Other asset-backed securities 298 6,742 1,026 8,066 Corporate and other 28 16,847 1,729 18,604 Total AFS fixed maturities 326 32,932 2,825 36,083 Trading fixed maturities — 40 — 40 Equity securities 68 199 381 648 Equity index call options — 646 — 646 Variable annuity assets (separate accounts) (*) — 668 — 668 Other assets — derivatives — 59 — 59 Total assets accounted for at fair value $ 394 $ 34,544 $ 3,206 $ 38,144 Liabilities: Derivatives in annuity benefits accumulated $ — $ — $ 4,208 $ 4,208 Other liabilities — derivatives — 19 — 19 Total liabilities accounted for at fair value $ — $ 19 $ 4,208 $ 4,227 (*) Variable annuity liabilities equal the fair value of variable annuity assets. Assets and liabilities measured and carried at fair value in the financial statements are summarized below (in millions): Level 1 Level 2 Level 3 Total December 31, 2020 Assets: Available for sale (“AFS”) fixed maturities: U.S. Government and government agencies $ 6 $ 23 $ 15 $ 44 States, municipalities and political subdivisions — 3,358 64 3,422 Foreign government — 34 — 34 Residential MBS — 2,013 127 2,140 Commercial MBS — 688 10 698 Collateralized loan obligations — 3,443 48 3,491 Other asset-backed securities — 4,107 1,069 5,176 Corporate and other 41 17,733 1,344 19,118 Total AFS fixed maturities 47 31,399 2,677 34,123 Trading fixed maturities — 42 — 42 Equity securities 431 49 293 773 Equity index call options — 825 — 825 Variable annuity assets (separate accounts) (*) — 664 — 664 Other assets — derivatives — 102 — 102 Total assets accounted for at fair value $ 478 $ 33,081 $ 2,970 $ 36,529 Liabilities: Derivatives in annuity benefits accumulated $ — $ — $ 3,933 $ 3,933 Other liabilities — derivatives — 10 — 10 Total liabilities accounted for at fair value $ — $ 10 $ 3,933 $ 3,943 December 31, 2019 Assets: Available for sale fixed maturities: U.S. Government and government agencies $ 6 $ 24 $ 15 $ 45 States, municipalities and political subdivisions — 4,284 65 4,349 Foreign government — 34 — 34 Residential MBS — 1,971 128 2,099 Commercial MBS — 806 29 835 Collateralized loan obligations — 3,365 14 3,379 Other asset-backed securities — 4,357 1,030 5,387 Corporate and other 16 20,220 1,535 21,771 Total AFS fixed maturities 22 35,061 2,816 37,899 Trading fixed maturities — 54 — 54 Equity securities 492 41 276 809 Equity index call options — 924 — 924 Variable annuity assets (separate accounts) (*) — 628 — 628 Other assets — derivatives — 50 — 50 Total assets accounted for at fair value $ 514 $ 36,758 $ 3,092 $ 40,364 Liabilities: Derivatives in annuity benefits accumulated $ — $ — $ 3,730 $ 3,730 Other liabilities — derivatives — 10 — 10 Total liabilities accounted for at fair value $ — $ 10 $ 3,730 $ 3,740 (*) Variable annuity liabilities equal the fair value of variable annuity assets. |
Unobservable inputs used by management in determining fair value of embedded derivatives | The following table presents information about the unobservable inputs used by management in determining fair value of these Level 3 liabilities at September 30, 2021 (unaudited). See Note F — “Derivatives.” Unobservable Input Range Adjustment for insurance subsidiary’s credit risk 0% – 2.2% over the risk-free rate Risk margin for uncertainty in cash flows 0.99% reduction in the discount rate Surrenders 7% – 22% of indexed account value Partial surrenders 2% – 10% of indexed account value Annuitizations 0.1% – 1% of indexed account value Deaths 2.0% – 13.7% of indexed account value Budgeted option costs 2.2% – 2.8% of indexed account value |
Changes in balances of Level 3 financial assets | Changes in balances of Level 3 financial assets and liabilities carried at fair value during the nine months ended September 30, 2021 (unaudited) and the years ended December 31, 2020, 2019 and 2018 are presented below (in millions). The transfers into and out of Level 3 were due to changes in the availability of market observable inputs and $20 million of equity securities transferred into Level 3 in the first quarter of 2018 related to a small number of limited partnerships and similar investments carried at cost under the prior guidance that are carried at fair value through net earnings under new guidance adopted on January 1, 2018, as discussed in Note A “Accounting Policies — Investments.” Total realized/unrealized Balance at Net Other Purchases Sales and Transfer Transfer Balance at AFS fixed maturities: U.S. government agency $ 15 $ 3 $ (18 ) $ — $ — $ — $ — $ — State and municipal 64 — (2 ) — (3 ) — — 59 Residential MBS 127 (3 ) 1 — (13 ) 2 (112 ) 2 Commercial MBS 10 (1 ) — — (1 ) 8 (7 ) 9 Collateralized loan obligations 48 3 (3 ) — (1 ) — (47 ) — Other asset-backed securities 1,069 5 3 330 (318 ) 152 (215 ) 1,026 Corporate and other 1,344 — 58 235 (134 ) 295 (69 ) 1,729 Total AFS fixed maturities 2,677 7 39 565 (470 ) 457 (450 ) 2,825 Equity securities 293 91 — 69 (65 ) — (7 ) 381 Total Level 3 assets $ 2,970 $ 98 $ 39 $ 634 $ (535 ) $ 457 $ (457 ) $ 3,206 Embedded derivatives $ (3,933 ) $ (296 ) $ — $ (283 ) $ 304 $ — $ — $ (4,208 ) Total Level 3 liabilities $ (3,933 ) $ (296 ) $ — $ (283 ) $ 304 $ — $ — $ (4,208 ) Total realized/unrealized Balance at Net Other Purchases Sales and Transfer Transfer Balance at AFS fixed maturities: U.S. government agency $ 15 $ 3 $ (3 ) $ — $ — $ — $ — $ 15 State and municipal 65 — 4 — (3 ) — (2 ) 64 Residential MBS 128 (6 ) (7 ) — (13 ) 49 (24 ) 127 Commercial MBS 29 — — — (3 ) 1 (17 ) 10 Collateralized loan obligations 14 (5 ) 17 — — 135 (113 ) 48 Other asset-backed securities 1,030 (10 ) 14 296 (282 ) 173 (152 ) 1,069 Corporate and other 1,535 2 34 227 (130 ) 128 (452 ) 1,344 Total AFS fixed maturities 2,816 (16 ) 59 523 (431 ) 486 (760 ) 2,677 Equity securities 276 (1 ) — 35 (12 ) 9 (14 ) 293 Total Level 3 assets $ 3,092 $ (17 ) $ 59 $ 558 $ (443 ) $ 495 $ (774 ) $ 2,970 Embedded derivatives (*) $ (3,730 ) $ (283 ) $ — $ (242 ) $ 322 $ — $ — $ (3,933 ) Total Level 3 liabilities $ (3,730 ) $ (283 ) $ — $ (242 ) $ 322 $ — $ — $ (3,933 ) (*) Total realized/unrealized gains (losses) included in net earnings for the embedded derivatives reflects a favorable adjustment related to the unlocking of actuarial assumptions of $ 240 Total realized/unrealized Balance at Net Other Purchases Sales and Transfer Transfer Balance at AFS fixed maturities: U.S. government agency $ 8 $ — $ 7 $ — $ — $ — $ — $ 15 State and municipal 59 — 6 — (3 ) 10 (7 ) 65 Residential MBS 161 3 (3 ) — (18 ) 36 (51 ) 128 Commercial MBS 48 2 — — (13 ) 3 (11 ) 29 Collateralized loan obligations 85 (4 ) 4 — — 14 (85 ) 14 Other asset-backed securities 543 — 5 727 (162 ) 23 (106 ) 1,030 Corporate and other 1,719 (1 ) 53 378 (250 ) 28 (392 ) 1,535 Total AFS fixed maturities 2,623 — 72 1,105 (446 ) 114 (652 ) 2,816 Equity securities 212 8 — 36 (2 ) 22 — 276 Total Level 3 assets $ 2,835 $ 8 $ 72 $ 1,141 $ (448 ) $ 136 $ (652 ) $ 3,092 Embedded derivatives (*) $ (2,720 ) $ (919 ) $ — $ (333 ) $ 242 $ — $ — $ (3,730 ) Total Level 3 liabilities $ (2,720 ) $ (919 ) $ — $ (333 ) $ 242 $ — $ — $ (3,730 ) (*) Total realized/unrealized gains (losses) included in net earnings for the embedded derivatives includes a favorable adjustment related to the unlocking of actuarial assumptions of $ 181 Total realized/unrealized Balance at Net Other Purchases Sales and Transfer Transfer Balance at AFS fixed maturities: U.S. government agency $ 8 $ — $ — $ — $ — $ — $ — $ 8 State and municipal 72 — (3 ) — (2 ) — (8 ) 59 Residential MBS 99 (5 ) (4 ) — (18 ) 106 (17 ) 161 Commercial MBS 34 — — 14 — — — 48 Collateralized loan obligations 142 (2 ) (9 ) 24 (11 ) 2 (61 ) 85 Other asset-backed securities 398 — (1 ) 292 (171 ) 69 (44 ) 543 Corporate and other 941 (9 ) (18 ) 986 (148 ) 26 (59 ) 1,719 Total AFS fixed maturities 1,694 (16 ) (35 ) 1,316 (350 ) 203 (189 ) 2,623 Equity securities 105 (4 ) — 106 (4 ) 20 (11 ) 212 Total Level 3 assets $ 1,799 $ (20 ) $ (35 ) $ 1,422 $ (354 ) $ 223 $ (200 ) $ 2,835 Embedded derivatives (*) $ (2,542 ) $ 204 $ — $ (545 ) $ 163 $ — $ — $ (2,720 ) Total Level 3 liabilities $ (2,542 ) $ 204 $ — $ (545 ) $ 163 $ — $ — $ (2,720 ) (*) Total realized/unrealized gains (losses) included in net earnings for the embedded derivatives includes losses related to the unlocking of actuarial assumptions of $ 44 |
Changes in balances of Level 3 financial liabilities | Changes in balances of Level 3 financial assets and liabilities carried at fair value during the nine months ended September 30, 2021 (unaudited) and the years ended December 31, 2020, 2019 and 2018 are presented below (in millions). The transfers into and out of Level 3 were due to changes in the availability of market observable inputs and $20 million of equity securities transferred into Level 3 in the first quarter of 2018 related to a small number of limited partnerships and similar investments carried at cost under the prior guidance that are carried at fair value through net earnings under new guidance adopted on January 1, 2018, as discussed in Note A “Accounting Policies — Investments.” Total realized/unrealized Balance at Net Other Purchases Sales and Transfer Transfer Balance at AFS fixed maturities: U.S. government agency $ 15 $ 3 $ (18 ) $ — $ — $ — $ — $ — State and municipal 64 — (2 ) — (3 ) — — 59 Residential MBS 127 (3 ) 1 — (13 ) 2 (112 ) 2 Commercial MBS 10 (1 ) — — (1 ) 8 (7 ) 9 Collateralized loan obligations 48 3 (3 ) — (1 ) — (47 ) — Other asset-backed securities 1,069 5 3 330 (318 ) 152 (215 ) 1,026 Corporate and other 1,344 — 58 235 (134 ) 295 (69 ) 1,729 Total AFS fixed maturities 2,677 7 39 565 (470 ) 457 (450 ) 2,825 Equity securities 293 91 — 69 (65 ) — (7 ) 381 Total Level 3 assets $ 2,970 $ 98 $ 39 $ 634 $ (535 ) $ 457 $ (457 ) $ 3,206 Embedded derivatives $ (3,933 ) $ (296 ) $ — $ (283 ) $ 304 $ — $ — $ (4,208 ) Total Level 3 liabilities $ (3,933 ) $ (296 ) $ — $ (283 ) $ 304 $ — $ — $ (4,208 ) Total realized/unrealized Balance at Net Other Purchases Sales and Transfer Transfer Balance at AFS fixed maturities: U.S. government agency $ 15 $ 3 $ (3 ) $ — $ — $ — $ — $ 15 State and municipal 65 — 4 — (3 ) — (2 ) 64 Residential MBS 128 (6 ) (7 ) — (13 ) 49 (24 ) 127 Commercial MBS 29 — — — (3 ) 1 (17 ) 10 Collateralized loan obligations 14 (5 ) 17 — — 135 (113 ) 48 Other asset-backed securities 1,030 (10 ) 14 296 (282 ) 173 (152 ) 1,069 Corporate and other 1,535 2 34 227 (130 ) 128 (452 ) 1,344 Total AFS fixed maturities 2,816 (16 ) 59 523 (431 ) 486 (760 ) 2,677 Equity securities 276 (1 ) — 35 (12 ) 9 (14 ) 293 Total Level 3 assets $ 3,092 $ (17 ) $ 59 $ 558 $ (443 ) $ 495 $ (774 ) $ 2,970 Embedded derivatives (*) $ (3,730 ) $ (283 ) $ — $ (242 ) $ 322 $ — $ — $ (3,933 ) Total Level 3 liabilities $ (3,730 ) $ (283 ) $ — $ (242 ) $ 322 $ — $ — $ (3,933 ) (*) Total realized/unrealized gains (losses) included in net earnings for the embedded derivatives reflects a favorable adjustment related to the unlocking of actuarial assumptions of $ 240 Total realized/unrealized Balance at Net Other Purchases Sales and Transfer Transfer Balance at AFS fixed maturities: U.S. government agency $ 8 $ — $ 7 $ — $ — $ — $ — $ 15 State and municipal 59 — 6 — (3 ) 10 (7 ) 65 Residential MBS 161 3 (3 ) — (18 ) 36 (51 ) 128 Commercial MBS 48 2 — — (13 ) 3 (11 ) 29 Collateralized loan obligations 85 (4 ) 4 — — 14 (85 ) 14 Other asset-backed securities 543 — 5 727 (162 ) 23 (106 ) 1,030 Corporate and other 1,719 (1 ) 53 378 (250 ) 28 (392 ) 1,535 Total AFS fixed maturities 2,623 — 72 1,105 (446 ) 114 (652 ) 2,816 Equity securities 212 8 — 36 (2 ) 22 — 276 Total Level 3 assets $ 2,835 $ 8 $ 72 $ 1,141 $ (448 ) $ 136 $ (652 ) $ 3,092 Embedded derivatives (*) $ (2,720 ) $ (919 ) $ — $ (333 ) $ 242 $ — $ — $ (3,730 ) Total Level 3 liabilities $ (2,720 ) $ (919 ) $ — $ (333 ) $ 242 $ — $ — $ (3,730 ) (*) Total realized/unrealized gains (losses) included in net earnings for the embedded derivatives includes a favorable adjustment related to the unlocking of actuarial assumptions of $ 181 Total realized/unrealized Balance at Net Other Purchases Sales and Transfer Transfer Balance at AFS fixed maturities: U.S. government agency $ 8 $ — $ — $ — $ — $ — $ — $ 8 State and municipal 72 — (3 ) — (2 ) — (8 ) 59 Residential MBS 99 (5 ) (4 ) — (18 ) 106 (17 ) 161 Commercial MBS 34 — — 14 — — — 48 Collateralized loan obligations 142 (2 ) (9 ) 24 (11 ) 2 (61 ) 85 Other asset-backed securities 398 — (1 ) 292 (171 ) 69 (44 ) 543 Corporate and other 941 (9 ) (18 ) 986 (148 ) 26 (59 ) 1,719 Total AFS fixed maturities 1,694 (16 ) (35 ) 1,316 (350 ) 203 (189 ) 2,623 Equity securities 105 (4 ) — 106 (4 ) 20 (11 ) 212 Total Level 3 assets $ 1,799 $ (20 ) $ (35 ) $ 1,422 $ (354 ) $ 223 $ (200 ) $ 2,835 Embedded derivatives (*) $ (2,542 ) $ 204 $ — $ (545 ) $ 163 $ — $ — $ (2,720 ) Total Level 3 liabilities $ (2,542 ) $ 204 $ — $ (545 ) $ 163 $ — $ — $ (2,720 ) (*) Total realized/unrealized gains (losses) included in net earnings for the embedded derivatives includes losses related to the unlocking of actuarial assumptions of $ 44 |
Fair value of financial instruments | The carrying value and fair value of financial instruments that are not carried at fair value in the financial statements are summarized below (in millions): Carrying Fair Value Value Total Level 1 Level 2 Level 3 September 30, 2021 (unaudited) Financial assets: Cash and cash equivalents $ 1,308 $ 1,308 $ 1,308 $ — $ — Mortgage loans 1,512 — — — — Policy loans 142 142 — — — Total financial assets not accounted for at fair value $ 2,962 $ — $ — $ — $ — Financial liabilities: Annuity benefits accumulated (*) $ — $ — $ — $ — $ — Total financial liabilities not accounted for at fair value $ — $ — $ — $ — $ — December 31, 2020 Financial assets: Cash and cash equivalents $ 1,151 $ 1,151 $ 1,151 $ — $ — Mortgage loans 1,251 1,271 — — 1,271 Policy loans 151 151 — — 151 Total financial assets not accounted for at fair value $ 2,553 $ 2,573 $ 1,151 $ — $ 1,422 Financial liabilities: Annuity benefits accumulated (*) $ 41,460 $ 43,081 $ — $ — $ 43,081 Total financial liabilities not accounted for at fair value $ 41,460 $ 43,081 $ — $ — $ 43,081 December 31, 2019 Financial assets: Cash and cash equivalents $ 734 $ 734 $ 734 $ — $ — Mortgage loans 1,072 1,081 — — 1,081 Policy loans 164 164 — — 164 Total financial assets not accounted for at fair value $ 1,970 $ 1,979 $ 734 $ — $ 1,245 Financial liabilities: Annuity benefits accumulated (*) $ 40,160 $ 40,182 $ — $ — $ 40,182 Total financial liabilities not accounted for at fair value $ 40,160 $ 40,182 $ — $ — $ 40,182 (*) Excludes $ 1.16 1.11 247 |
Balance Sheet Impact of Net U_2
Balance Sheet Impact of Net Unrealized Gains on Securities (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Components of the net unrealized gain on securities, included in Accumulated Other Comprehensive Income | The following table shows (in millions) the components of the net unrealized gains on securities that is included in AOCI in GALIC’s Balance Sheet. Asset Impact of Carrying September 30, 2021 (unaudited) Fixed maturities $ 33,988 $ 2,095 $ 36,083 Deferred policy acquisition costs 1,242 (768 ) 474 Annuity benefits accumulated (44,089 ) (287 ) (44,376 ) Life, accident and health reserves (589 ) (3 ) (592 ) Unearned revenue (included in other liabilities) (25 ) 8 (17 ) Net unrealized gain, pretax 1,045 Deferred tax on unrealized gain (219 ) Net unrealized gain, after tax (included in AOCI) $ 826 December 31, 2020 Fixed maturities $ 31,570 $ 2,553 $ 34,123 Deferred policy acquisition costs 1,236 (934 ) 302 Annuity benefits accumulated (42,249 ) (324 ) (42,573 ) Life, accident and health reserves (607 ) (3 ) (610 ) Unearned revenue (included in other liabilities) (26 ) 11 (15 ) Net unrealized gain, pretax 1,303 Deferred tax on unrealized gain (274 ) Net unrealized gain, after tax (included in AOCI) $ 1,029 December 31, 2019 Fixed maturities $ 36,144 $ 1,755 $ 37,899 Deferred policy acquisition costs 1,394 (681 ) 713 Annuity benefits accumulated (40,186 ) (220 ) (40,406 ) Unearned revenue (included in other liabilities) (23 ) 11 (12 ) Net unrealized gain, pretax 865 Deferred tax on unrealized gain (182 ) Net unrealized gain, after tax (included in AOCI) $ 683 |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Available for sale fixed maturities and equity securities | Available for sale fixed maturities at September 30 (unaudited) and December 31 consisted of the following (in millions): Amortized Allowance for Gross Unrealized Net Fair Gains Losses September 30, 2021 (unaudited) Fixed maturities: U.S. Government and government agencies $ 39 $ — $ 2 $ (16 ) $ (14 ) $ 25 States, municipalities and political subdivisions 2,680 — 264 — 264 2,944 Foreign government 31 — 3 — 3 34 Residential MBS 2,362 2 166 (8 ) 158 2,518 Commercial MBS 573 — 29 — 29 602 Collateralized loan obligations 3,279 3 18 (4 ) 14 3,290 Other asset-backed securities 7,982 10 142 (48 ) 94 8,066 Corporate and other 17,057 — 1,563 (16 ) 1,547 18,604 Total fixed maturities $ 34,003 $ 15 $ 2,187 $ (92 ) $ 2,095 $ 36,083 December 31, 2020 Fixed maturities: U.S. Government and government agencies $ 40 $ — $ 4 $ — $ 4 $ 44 States, municipalities and political subdivisions 3,053 — 371 (2 ) 369 3,422 Foreign government 31 — 3 — 3 34 Residential MBS 1,954 3 192 (3 ) 189 2,140 Commercial MBS 659 — 40 (1 ) 39 698 Collateralized loan obligations 3,490 10 24 (13 ) 11 3,491 Other asset-backed securities 5,099 11 142 (54 ) 88 5,176 Corporate and other 17,272 4 1,874 (24 ) 1,850 19,118 Total fixed maturities $ 31,598 $ 28 $ 2,650 $ (97 ) $ 2,553 $ 34,123 December 31, 2019 Fixed maturities: U.S. Government and government agencies $ 38 $ — $ 7 $ — $ 7 $ 45 States, municipalities and political subdivisions 4,080 — 270 (1 ) 269 4,349 Foreign government 31 — 3 — 3 34 Residential MBS 1,909 — 193 (3 ) 190 2,099 Commercial MBS 807 — 28 — 28 835 Collateralized loan obligations 3,401 — 8 (30 ) (22 ) 3,379 Other asset-backed securities 5,265 — 138 (16 ) 122 5,387 Corporate and other 20,613 — 1,176 (18 ) 1,158 21,771 Total fixed maturities $ 36,144 $ — $ 1,823 $ (68 ) $ 1,755 $ 37,899 |
Equity securities reported at fair value | Equity securities, which are reported at fair value with holding gains and losses recognized in net earnings, consisted of the following at September 30, 2021 (unaudited), December 31, 2020 and 2019 (in millions): September 30, 2021 (unaudited) December 31, 2020 December 31, 2019 Fair Value Fair Value Fair Value over (under) over (under) over (under) Actual Cost Fair Value Cost Actual Cost Fair Value Cost Actual Cost Fair Value Cost Common stocks $ — $ 241 $ — $ 423 $ 412 $ (11 ) $ 497 $ 552 $ 55 Perpetual preferred stocks — 407 — 333 361 28 249 257 8 Total equity securities carried at fair value $ — $ 648 $ — $ 756 $ 773 $ 17 $ 746 $ 809 $ 63 |
Available for sale securities in a continuous unrealized loss position | The following tables show gross unrealized losses (dollars in millions) on available for sale fixed maturities by investment category and length of time that individual securities have been in a continuous unrealized loss po s Less Than Twelve Months Twelve Months or More Unrealized Loss Fair Value Fair Value as % of Cost Unrealized Loss Fair Value Fair Value as % of Cost September 30, 2021 (unaudited) Fixed maturities: U.S. Government and government agencies $ (16 ) $ 1 6 % $ — $ — — % States, municipalities and political subdivisions — 5 100 % — — — % Residential MBS (6 ) 907 99 % (2 ) 20 91 % Commercial MBS — 9 100 % — — — % Collateralized loan obligations (3 ) 433 99 % (1 ) 259 100 % Other asset-backed securities (37 ) 2,410 98 % (11 ) 314 97 % Corporate and other (13 ) 723 98 % (3 ) 139 98 % Total fixed maturities $ (75 ) $ 4,488 98 % $ (17 ) $ 732 98 % December 31, 2020 Fixed maturities: U.S. Government and government agencies $ — $ — — % $ — $ — — % States, municipalities and political subdivisions (2 ) 80 98 % — — — % Residential MBS (2 ) 124 98 % (1 ) 23 96 % Commercial MBS (1 ) 32 97 % — 5 100 % Collateralized loan obligations (2 ) 496 100 % (11 ) 1,256 99 % Other asset-backed securities (35 ) 974 97 % (19 ) 295 94 % Corporate and other (20 ) 724 97 % (4 ) 107 96 % Total fixed maturities $ (62 ) $ 2,430 98 % $ (35 ) $ 1,686 98 % December 31, 2019 Fixed maturities: U.S. Government and government agencies $ — $ — — % $ — $ — — % States, municipalities and political subdivisions (1 ) 105 99 % — 5 100 % Residential MBS (2 ) 315 99 % (1 ) 15 94 % Commercial MBS — 11 100 % — — — % Collateralized loan obligations (9 ) 995 99 % (21 ) 1,363 98 % Other asset-backed securities (11 ) 838 99 % (5 ) 91 95 % Corporate and other (11 ) 937 99 % (7 ) 202 97 % Total fixed maturities $ (34 ) $ 3,201 99 % $ (34 ) $ 1,676 98 % |
Debt Securities, Available-for-sale, Allowance for Credit Loss | A progression of the allowance for expected credit losses on fixed maturity securities is shown below (in millions): Structured Corporate and Total Balance at January 1, 2020 $ — $ — $ — Impact of adoption of new accounting policy — — — Initial allowance for purchased securities with credit deterioration 1 — 1 Provision for expected credit losses on securities with no previous allowance 28 23 51 Additions (reductions) to previously recognized expected credit losses (5 ) (14 ) (19 ) Reductions due to sales or redemptions — (5 ) (5 ) Balance at December 31, 2020 $ 24 $ 4 $ 28 Balance at January 1, 2021 $ 24 $ 4 $ 28 Impact of adoption of new accounting policy — — — Initial allowance for purchased securities with credit deterioration — — — Provision for expected credit losses on securities with no previous allowance — 1 1 Additions (reductions) to previously recognized expected credit losses (7 ) (1 ) (8 ) Reductions due to sales or redemptions (2 ) (4 ) (6 ) Balance at September 30, 2021 (unaudited) $ 15 $ — $ 15 (*) Includes mortgage-backed securities, collateralized loan obligations and other asset-backed securities. |
Available for sale fixed maturity securities by contractual maturity date | The table below sets forth the scheduled maturities of available for sale fixed maturities as of December 31, 2020 (dollars in millions). Securities with sinking funds are reported at average maturity. Actual maturities may differ from contractual maturities because certain securities may be called or prepaid by the issuers. September 30, 2021 December 31, 2020 Amortized Fair Value Amortized Fair Value Cost, net (*) Amount % Cost, net (*) Amount % (unaudited) (unaudited) Maturity One year or less $ 1,577 $ 1,617 4 % $ 1,975 $ 1,995 6 % After one year through five years 8,006 8,652 24 % 7,761 8,442 25 % After five years through ten years 7,032 7,860 22 % 8,198 9,402 28 % After ten years 3,192 3,478 10 % 2,458 2,779 8 % 19,807 21,607 60 % 20,392 22,618 67 % Collateralized loan obligations and other ABS (average life of approximately 4 years) 11,248 11,356 31 % 8,568 8,667 25 % MBS (average life of approximately 3 1/2 2,933 3,120 9 % 2,610 2,838 8 % Total $ 33,988 $ 36,083 100 % $ 31,570 $ 34,123 100 % (*) Amortized cost, net of allowance for expected credit losses |
Net investment income earned and investment expenses incurred | The following table shows (in millions) investment income earned and investment expenses incurred. Nine months ended Year ended December 31, 2021 2020 2020 2019 2018 (unaudited) (unaudited) Investment income: Fixed maturities $ 1,059 $ 1,216 $ 1,577 $ 1,600 $ 1,450 Equity securities: Dividends 14 22 28 34 30 Change in fair value (*) 36 3 17 17 13 Equity in earnings of partnerships and similar investments 169 14 48 90 96 Mortgage loans 43 40 54 43 45 Policy loans 6 7 9 9 10 Real estate and other 27 (7 ) 7 36 26 Gross investment income 1,354 1,295 1,740 1,829 1,670 Investment expenses (24 ) (12 ) (23 ) (16 ) (13 ) Net investment income $ 1,330 $ 1,283 $ 1,717 $ 1,813 $ 1,657 (*) Although the change in the fair value of the majority of GALIC’s equity securities is recorded in realized gains (losses) on securities, GALIC records holding gains and losses in net investment income on equity securities classified as “trading” under previous guidance and on a small portfolio of limited partnership and similar investments that do not qualify for the equity method of accounting. |
Real estate and other investments included on the Balance Sheet | Realized gains (losses) and changes in unrealized appreciation (depreciation) included in AOCI related to fixed maturity securities are summarized as follows (in millions): Nine months ended September 30, 2021 (unaudited) Nine months ended September 30, 2020 (unaudited) Realized gains (losses) Realized gains (losses) Before Impairments Total Change in Before Impairments Total Change in Fixed maturitie s $ 21 $ 7 $ 28 $ (458 ) $ 38 $ (43 ) $ (5 ) $ 933 Equity securities 84 — 84 — (111 ) — (111 ) — Mortgage loans and other investments 3 — 3 — 3 — 3 — Other (*) (1 ) (2 ) (3 ) 200 (6 ) 14 8 (526 ) Total pretax 107 5 112 (258 ) (76 ) (29 ) (105 ) 407 Tax effects (22 ) (1 ) (23 ) 55 16 6 22 (85 ) Net of tax $ 85 $ 4 $ 89 $ (203 ) $ (60 ) $ (23 ) $ (83 ) $ 322 2020 2019 Realized gains (losses) Realized gains (losses) Before Impairments Total Change in Before Impairments Total Change in Fixed maturities $ 461 $ (32 ) $ 429 $ 798 $ 19 $ (21 ) $ (2 ) $ 1,647 Equity securities (27 ) — (27 ) — 122 — 122 — Mortgage loans and other investments 3 — 3 — 2 — 2 — Other (*) (51 ) 11 (40 ) (360 ) (1 ) 11 10 (835 ) Total pretax 386 (21 ) 365 438 142 (10 ) 132 812 Tax effects (81 ) 4 (77 ) (92 ) (30 ) 2 (28 ) (171 ) Net of tax $ 305 $ (17 ) $ 288 $ 346 $ 112 $ (8 ) $ 104 $ 641 2018 Realized gains (losses) Before Impairments Total Change in Fixed maturitie s $ 5 $ (21 ) $ (16 ) $ (1,057 ) Equity securities (107 ) — (107 ) — Mortgage loans and other investments — — — — Other (*) 11 7 18 502 Total pretax (91 ) (14 ) (105 ) (555 ) Tax effects 19 3 22 117 Net of tax $ (72 ) $ (11 ) $ (83 ) $ (438 ) (*) Primarily adjustments to deferred policy acquisition costs and reserves related to the annuity business. |
Holding gains (losses) on equity securities still held | GALIC recorded net holding gains (losses) on equity securities during 2020 and 2019 on securities that were still owned at December 31 as follows (in millions): Nine months ended September 30, Year ended December 31, 2021 2020 2020 2019 (unaudited) (unaudited) Included in realized gains (losses) $ 50 $ (126 ) $ (25 ) $ 123 Included in net investment income 35 3 11 17 $ 85 $ (123 ) $ (14 ) $ 140 |
Gross realized gains and losses on available for sale fixed maturity and equity security investments | Gross realized gains and losses (excluding impairment write-downs and mark-to-market (Unaudited) Nine months ended September 30, Year ended December 31, 2021 2020 2020 2019 2018 Gross gains $ 82 $ 69 $ 514 $ 30 $ 17 Gross losses (1 ) (30 ) (51 ) (16 ) (12 ) |
Derivatives (Tables)
Derivatives (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives included in Balance Sheet at fair value | The following derivatives that do not qualify for hedge accounting under GAAP are included in GALIC’s Balance Sheet at fair value (in millions): September 30, 2021 December 31, December 31, Derivative Balance Sheet Line Asset Liability Asset Liability Asset Liability (unaudited) (unaudited) MBS with embedded derivatives Fixed maturities $ 117 $ — $ 137 $ — $ 74 $ — Public company warrants Equity securities — — — — — — Fixed-indexed and registered index-linked annuities (embedded derivative) Annuity benefits accumulated — 4,208 — 3,933 — 3,730 Equity index call options Equity index call options 646 — 825 — 924 — Equity index put options Other liabilities — (14 ) — 5 — 1 Reinsurance contract (embedded derivative) Other liabilities — 5 — 5 — 4 $ 763 $ 4,199 $ 962 $ 3,943 $ 998 $ 3,735 |
Summary of gain (loss) included in the Statement of Earnings for changes in the fair value of derivatives | The following table summarizes the gains (losses) included in GALIC’s Statement of Earnings for changes in the fair value of derivatives that do not qualify for hedge accounting (in millions): Nine months ended Year ended December 31, Derivative Statement of Earnings Line 2021 2020 2020 2019 2018 (unaudited) (unaudited) MBS with embedded derivative s Realized gains (losses) on securities $ (18 ) $ 2 $ (2 ) $ 5 $ (4 ) Public company warrants Realized gains (losses) on securities — — — — (3 ) Fixed-indexed and registered index-linked annuities (embedded derivative) (*) Annuity benefits 296 41 (283 ) (919 ) 204 Equity index call options Annuity benefits 282 (42 ) 223 804 (298 ) Equity index put options Annuity benefits 5 1 3 2 (1 ) Reinsurance contract (embedded derivative) Net investment income — — (1 ) (2 ) 2 $ 565 $ 2 $ (60 ) $ (110 ) $ (100 ) (*) The change in fair value of the embedded derivative includes a favorable adjustment related to unlocking of actuarial assumptions of $240 million in 2020 and $181 million in 2019 and losses of $44 million in 2018. |
Deferred Policy Acquisition C_2
Deferred Policy Acquisition Costs (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Deferred Policy Acquisition Costs Disclosures [Abstract] | |
Deferred policy acquisition costs details | A progression of deferred policy acquisition costs is presented below (in millions): Deferred Sales PVFP Subtotal Unrealized (*) Total Balance at December 31, 2017 $ 1,214 $ 102 $ 49 $ 1,365 $ (422 ) $ 943 Additions 263 2 — 265 — 265 Amortization: Periodic amortization (237 ) (19 ) (7 ) (263 ) — (263 ) Annuity unlocking 29 — — 29 — 29 Included in realized gains 14 1 — 15 — 15 Other — — — — — — Change in unrealized — — — — 392 392 Balance at December 31, 2018 1,283 86 42 1,411 (30 ) 1,381 Additions 206 2 — 208 — 208 Amortization: Periodic amortization (120 ) (13 ) (6 ) (139 ) — (139 ) Annuity unlocking (76 ) (1 ) — (77 ) — (77 ) Included in realized gains 8 1 — 9 — 9 Change in unrealized — — — — (669 ) (669 ) Balance at December 31, 2019 1,301 75 36 1,412 (699 ) 713 Additions 155 2 — 157 — 157 Amortization: Periodic amortization (126 ) (9 ) (6 ) (141 ) — (141 ) Annuity unlocking (118 ) 4 — (114 ) — (114 ) Included in realized gains (42 ) 1 — (41 ) — (41 ) Change in unrealized — — — — (272 ) (272 ) Balance at December 31, 2020 $ 1,170 $ 73 $ 30 $ 1,273 $ (971 ) $ 302 Additions (unaudited) 185 — — 185 — 185 Amortization: Periodic amortization (unaudited) (182 ) (6 ) (4 ) (192 ) — (192 ) Annuity unlocking (unaudited) — — — — — — Included in realized gains (unaudited) (3 ) — — (3 ) — (3 ) Change in unrealized (unaudited) — — — — 182 182 Balance at September 30, 2021 (unaudited) $ 1,170 $ 67 $ 26 $ 1,263 $ (789 ) $ 474 (*) Adjustments to DPAC related to net unrealized gains/losses on securities and cash flow hedges. |
Shareholder's Equity (Tables)
Shareholder's Equity (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Stockholders' Equity Note [Abstract] | |
Components of accumulated other comprehensive income (loss) | The progression of the components of accumulated other comprehensive income follows (in millions): Other Comprehensive Income (Loss) AOCI Pretax Tax Net Other AOCI Nine months ended September 30, 2021 (unaudited) Net unrealized gains (losses) on securities: Unrealized holding losses on securities arising during the period $ (233 ) $ 49 $ (184 ) Reclassification adjustment for realized (gains) losses included in net earnings (a) (25 ) 6 (19 ) Total net unrealized gains (losses) on securities (b) $ 1,029 (258 ) 55 (203 ) $ — $ 826 Net unrealized losses on cash flow hedges 41 (24 ) 5 (19 ) — 22 Total $ 1,070 $ (282 ) $ 60 $ (222 ) $ — $ 848 Year ended December 31, 2020 Net unrealized gains on securities: Unrealized holding gains on securities arising during the period $ 834 $ (175 ) $ 659 Reclassification adjustment for realized (gains) losses included in net earnings (a) (396 ) 83 (313 ) Total net unrealized gains on securities $ 683 438 (92 ) 346 $ — $ 1,029 Net unrealized gains (losses) on cash flow hedges 17 30 (6 ) 24 — 41 Total $ 700 $ 468 $ (98 ) $ 370 $ — $ 1,070 Year ended December 31, 2019 Net unrealized gains (losses) on securities: Unrealized holding losses on securities arising during the period $ 828 $ (174 ) $ 654 Reclassification adjustment for realized (gains) losses included in net earnings (a) (16 ) 3 (13 ) Total net unrealized gains (losses) on securities $ 42 812 (171 ) 641 $ — $ 683 Net unrealized gains (losses) on cash flow hedges (11 ) 36 (8 ) 28 — 17 Total $ 31 $ 848 $ (179 ) $ 669 $ — $ 700 Year ended December 31, 2018 Net unrealized gains on securities: Unrealized holding gains on securities arising during the period $ (561 ) $ 118 $ (443 ) Reclassification adjustment for realized (gains) losses included in net earnings (a) 6 (1 ) 5 Total net unrealized gains on securities $ 570 (555 ) 117 (438 ) $ (90 ) $ 42 Net unrealized losses on cash flow hedges (13 ) 2 — 2 — (11 ) Total $ 557 $ (553 ) $ 117 $ (436 ) $ (90 ) $ 31 (a) The reclassification adjustment out of net unrealized gains on securities affected the following lines in GALIC’s Statement of Earnings: OCI component Affected line in the statement of earnings Pretax Realized gains (losses) on securities Tax Provision for income taxes (b) On January 1, 2018, GALIC adopted new guidance that requires all equity securities other than those accounted for under the equity method to be reported at fair value with holding gains and losses recognized in net earnings. At the date of adoption, the $90 million net unrealized gain on equity securities classified as available for sale (with unrealized holding gains and losses reported in AOCI) under the prior guidance was reclassified from AOCI to retained earnings as the cumulative effect of an accounting change. |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Reconciliation of income taxes at the statutory rate and income taxes shown in the Statement of Earnings | The following is a reconciliation of income taxes at the statutory rate 21% to the provision for income taxes as shown in GALIC’s Statement of Earnings (dollars in millions): Nine months ended September 30, Year ended December 31, 2021 2020 2020 2019 2018 Amount % of Amount % of Amount % of Amount % of Amount % of (unaudited) (unaudited) Earnings before income taxes (“EBT”) $ 417 $ (22 ) $ 529 $ 497 $ 256 Income taxes at statutory rate $ 88 21 % $ (5 ) (23 %) $ 111 21 % $ 104 21 % $ 54 21 % Effect of permanent items 19 5 % (3 ) (13 %) (4 ) (1 %) (2 ) — % (7 ) (3 %) Provision for income taxes as shown in the statement of earnings $ 107 26 % $ (8 ) (36 )% $ 107 20 % $ 102 21 % $ 47 18 % |
Components of income tax provision (credit) | The total income tax provision consists of (in millions): 2020 2019 2018 Current taxes: Federal $ 60 $ 152 $ 130 State 2 4 3 Deferred taxes: Federal 45 (54 ) (86 ) Provision for income taxes $ 107 $ 102 $ 47 |
Components of deferred tax assets and liabilities | Deferred income tax assets and liabilities reflect temporary differences between the carrying amounts of assets and liabilities recognized for financial reporting purposes and the amounts recognized for tax purposes. The significant components of deferred tax assets and liabilities included in GALIC’s Balance Sheet at December 31 were as follows (in millions): 2020 2019 Excluding Impact of Total Excluding Impact of Total Deferred tax assets: Insurance claims and reserve s $ 531 $ 68 $ 599 $ 601 $ 46 $ 647 Other, net 10 (2 ) 8 7 (2 ) 5 Total deferred tax assets 541 66 607 608 44 652 Deferred tax liabilities: Investment securities (97 ) (537 ) (634 ) (78 ) (369 ) (447 ) Deferred policy acquisition costs (212 ) 197 (15 ) (236 ) 143 (93 ) Insurance claims and reserves transition liability (57 ) — (57 ) (68 ) — (68 ) Total deferred tax liabilities (366 ) (340 ) (706 ) (382 ) (226 ) (608 ) Net deferred tax asset (liability) $ 175 $ (274 ) $ (99 ) $ 226 $ (182 ) $ 44 |
Insurance (Tables)
Insurance (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Insurance [Abstract] | |
Statutory information | Net earnings and capital and surplus on a statutory basis for GALIC and its insurance subsidiaries were as follows (in millions): Net Earnings Capital and Surplus 2020 2019 2018 2020 2019 GALIC consolidated life insurance companies $ 209 $ 34 $ 802 $ 2,897 $ 2,868 |
Reinsurance Recoverable, Allowance for Credit Loss | A progression of the 2020 allowance for expected credit losses is shown below (in millions): Recoverables from Reinsurers Balance at January 1 $ — Impact of adoption of new accounting policy 5 Provision for expected credit losses 2 Balance at December 31 $ 7 |
Schedule of reserve liabilities for annuity benefits accumulated | The liabilities included in GALIC’s Balance Sheet for these benefits, excluding the impact of unrealized gains on securities, were as follows at December 31 (in millions): 2020 2019 Expected death and annuitization $ 260 $ 232 Guaranteed withdrawal benefits 817 625 Accrued persistency and premium bonuses — 1 |
Accounting Policies - Narrative
Accounting Policies - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | ||||||
Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | |
Significant Accounting Policies [Line Items] | |||||||
Stockholders' equity, including portion attributable to noncontrolling interest | $ (3,738) | $ (3,995) | $ (3,481) | $ (2,539) | $ (2,808) | ||
Maturities of short term investments | 3 months | ||||||
AOCI Attributable to Parent | |||||||
Significant Accounting Policies [Line Items] | |||||||
Stockholders' equity, including portion attributable to noncontrolling interest | $ (848) | (1,070) | (700) | (31) | $ 90 | (557) | |
Retained Earnings | |||||||
Significant Accounting Policies [Line Items] | |||||||
Stockholders' equity, including portion attributable to noncontrolling interest | $ (1,884) | (1,874) | $ (1,741) | $ (1,488) | (1,248) | ||
Cumulative Effect, Period of Adoption, Adjustment | |||||||
Significant Accounting Policies [Line Items] | |||||||
Stockholders' equity, including portion attributable to noncontrolling interest | 5 | (3) | |||||
Cumulative Effect, Period of Adoption, Adjustment | AOCI Attributable to Parent | |||||||
Significant Accounting Policies [Line Items] | |||||||
Stockholders' equity, including portion attributable to noncontrolling interest | 90 | ||||||
Cumulative Effect, Period of Adoption, Adjustment | Retained Earnings | |||||||
Significant Accounting Policies [Line Items] | |||||||
Stockholders' equity, including portion attributable to noncontrolling interest | $ 5 | (93) | |||||
Equity securities | |||||||
Significant Accounting Policies [Line Items] | |||||||
Available-for-sale securities, equity securities | 593 | ||||||
Accounting Standards Update 2016-01 | Cumulative Effect, Period of Adoption, Adjustment | AOCI Attributable to Parent | |||||||
Significant Accounting Policies [Line Items] | |||||||
Stockholders' equity, including portion attributable to noncontrolling interest | (90) | ||||||
Accounting Standards Update 2016-13 | Cumulative Effect, Period of Adoption, Adjustment | Retained Earnings | |||||||
Significant Accounting Policies [Line Items] | |||||||
Stockholders' equity, including portion attributable to noncontrolling interest | $ 5 | ||||||
Limited partnerships and similar investments | Accounting Standards Update 2016-01 | Cumulative Effect, Period of Adoption, Adjustment | |||||||
Significant Accounting Policies [Line Items] | |||||||
Stockholders' equity, including portion attributable to noncontrolling interest | $ 3 |
Segments of Operations - Narrat
Segments of Operations - Narrative (Details) | 9 Months Ended |
Sep. 30, 2021segment | |
Segment Reporting [Abstract] | |
Number of segments | 2 |
Segments of Operations - Assets
Segments of Operations - Assets by segment (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Segment Reporting Information [Line Items] | ||||
Total assets | $ 50,134 | $ 48,571 | $ 45,893 | $ 40,801 |
Annuity | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | 47,886 | 45,217 | 40,115 | |
Run-off Life | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | $ 685 | $ 676 | $ 686 |
Segments of Operations - Revenu
Segments of Operations - Revenues by segment (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||||
Net investment income | $ 1,330 | $ 1,283 | $ 1,717 | $ 1,813 | $ 1,657 |
Other income | 81 | 76 | 104 | 114 | 115 |
Revenues before realized gains | 1,425 | 1,376 | 1,843 | 1,949 | 1,796 |
Realized gains (losses) on securities | 112 | (105) | 365 | 132 | (105) |
Total revenues | 1,537 | 1,271 | 2,208 | 2,081 | 1,691 |
Annuity | |||||
Segment Reporting Information [Line Items] | |||||
Net investment income | 1,316 | 1,268 | 1,699 | 1,792 | 1,638 |
Other income | 76 | 73 | 97 | 108 | 108 |
Revenues before realized gains | 1,392 | 1,341 | 1,796 | 1,900 | 1,746 |
Run-off Life | |||||
Segment Reporting Information [Line Items] | |||||
Revenues before realized gains | $ 33 | $ 35 | $ 47 | $ 49 | $ 50 |
Segments of Operations - Earnin
Segments of Operations - Earnings before income taxes by segment (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||||
Earnings before realized gains and income taxes | $ 305 | $ 83 | $ 164 | $ 365 | $ 361 |
Realized gains (losses) on securities | 112 | (105) | 365 | 132 | (105) |
Earnings before income taxes | 417 | (22) | 529 | 497 | 256 |
Annuity | |||||
Segment Reporting Information [Line Items] | |||||
Earnings before realized gains and income taxes | 303 | 89 | 170 | 363 | 363 |
Run-off Life | |||||
Segment Reporting Information [Line Items] | |||||
Earnings before realized gains and income taxes | $ 2 | $ (6) | $ (6) | $ 2 | $ (2) |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Mar. 31, 2018 | Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Level 3 assets as a percentage of total assets measured at fair value | 8.00% | ||||
Percentage of level 3 assets that were priced using non-binding broker quotes | 2.00% | ||||
Level 3 assets that were priced using non-binding broker quotes | $ 49 | ||||
Percentage Of Internally Developed Level Three Assets Compared to Total Level 3 Assets | 98.00% | ||||
Fair value of equity securities transferred into level 3 | $ 457 | $ 495 | $ 136 | $ 223 | |
Life contingent annuities | $ 1,160 | 1,110 | 247 | ||
Fixed-indexed annuities (embedded derivative), majority of future years | Minimum | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Unobservable input surrenders used in Level 3 fair value determination | 8.00% | ||||
Fixed-indexed annuities (embedded derivative), majority of future years | Maximum | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Unobservable input surrenders used in Level 3 fair value determination | 11.00% | ||||
Fixed-indexed and registered index-linked annuities (embedded derivative) | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair value of derivatives in annuity benefits accumulated measured using a discounted cash flow approach | $ 4,210 | 3,930 | |||
Fixed-indexed and registered index-linked annuities (embedded derivative) | Minimum | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Unobservable input surrenders used in Level 3 fair value determination | 7.00% | ||||
Fixed-indexed and registered index-linked annuities (embedded derivative) | Maximum | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Unobservable input surrenders used in Level 3 fair value determination | 22.00% | ||||
Not designated as hedging instrument | Annuity benefits | Fixed-indexed and registered index-linked annuities (embedded derivative) | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total realized/unrealized gains (losses) included in net income for the embedded derivatives related to the unlocking of actuarial assumptions | 240 | 181 | (44) | ||
Equity securities | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair value of equity securities transferred into level 3 | $ 20 | $ 0 | $ 9 | $ 22 | $ 20 |
Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Internally developed Level 3 assets | $ 3,140 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and liabilities measured and carried at fair value in the financial statements (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Assets: | |||
Available for sale (AFS) fixed maturities | $ 36,083 | $ 34,123 | $ 37,899 |
Trading fixed maturities | 40 | 42 | 54 |
Equity securities, at fair value | 648 | 773 | 809 |
Derivatives including equity index call options and other assets | 646 | 825 | 924 |
Variable annuity assets (separate accounts) | 668 | 664 | 628 |
Total assets accounted for at fair value | 38,144 | 36,529 | 40,364 |
Liabilities: | |||
Total liabilities accounted for at fair value | 4,227 | 3,943 | 3,740 |
Annuity benefits accumulated | |||
Liabilities: | |||
Derivatives included in annuity benefits accumulated and other liabilities | 4,208 | 3,933 | 3,730 |
Other liabilities | |||
Liabilities: | |||
Derivatives included in annuity benefits accumulated and other liabilities | 19 | 10 | 10 |
Fixed maturities | |||
Assets: | |||
Available for sale (AFS) fixed maturities | 36,083 | 34,123 | 37,899 |
Trading fixed maturities | 40 | 42 | 54 |
U.S. Government and government agencies | |||
Assets: | |||
Available for sale (AFS) fixed maturities | 25 | 44 | 45 |
Equity securities | |||
Assets: | |||
Equity securities, at fair value | 648 | 773 | 809 |
Derivatives including equity index call options and other assets | 646 | 825 | |
States, municipalities and political subdivisions | |||
Assets: | |||
Available for sale (AFS) fixed maturities | 2,944 | 3,422 | 4,349 |
Foreign government | |||
Assets: | |||
Available for sale (AFS) fixed maturities | 34 | 34 | 34 |
Equity index call options | |||
Assets: | |||
Derivatives including equity index call options and other assets | 0 | 0 | 0 |
Residential MBS | |||
Assets: | |||
Available for sale (AFS) fixed maturities | 2,518 | 2,140 | 2,099 |
Other assets — derivatives | |||
Assets: | |||
Derivatives including equity index call options and other assets | 59 | 102 | 50 |
Commercial MBS | |||
Assets: | |||
Available for sale (AFS) fixed maturities | 602 | 698 | 835 |
Collateralized loan obligations | |||
Assets: | |||
Available for sale (AFS) fixed maturities | 3,290 | 3,491 | 3,379 |
Other asset-backed securities | |||
Assets: | |||
Available for sale (AFS) fixed maturities | 8,066 | 5,176 | 5,387 |
Corporate and other | |||
Assets: | |||
Available for sale (AFS) fixed maturities | 18,604 | 19,118 | 21,771 |
Level 1 | |||
Assets: | |||
Variable annuity assets (separate accounts) | 0 | 0 | 0 |
Total assets accounted for at fair value | 394 | 478 | 514 |
Liabilities: | |||
Total liabilities accounted for at fair value | 0 | 0 | 0 |
Level 1 | Annuity benefits accumulated | |||
Liabilities: | |||
Derivatives included in annuity benefits accumulated and other liabilities | 0 | 0 | 0 |
Level 1 | Other liabilities | |||
Liabilities: | |||
Derivatives included in annuity benefits accumulated and other liabilities | 0 | 0 | 0 |
Level 1 | Fixed maturities | |||
Assets: | |||
Available for sale (AFS) fixed maturities | 326 | 47 | 22 |
Trading fixed maturities | 0 | 0 | 0 |
Level 1 | U.S. Government and government agencies | |||
Assets: | |||
Available for sale (AFS) fixed maturities | 0 | 6 | 6 |
Level 1 | Equity securities | |||
Assets: | |||
Equity securities, at fair value | 68 | 431 | 492 |
Level 1 | States, municipalities and political subdivisions | |||
Assets: | |||
Available for sale (AFS) fixed maturities | 0 | 0 | 0 |
Level 1 | Foreign government | |||
Assets: | |||
Available for sale (AFS) fixed maturities | 0 | 0 | 0 |
Level 1 | Residential MBS | |||
Assets: | |||
Available for sale (AFS) fixed maturities | 0 | 0 | 0 |
Level 1 | Other assets — derivatives | |||
Assets: | |||
Derivatives including equity index call options and other assets | 0 | 0 | 0 |
Level 1 | Commercial MBS | |||
Assets: | |||
Available for sale (AFS) fixed maturities | 0 | 0 | 0 |
Level 1 | Collateralized loan obligations | |||
Assets: | |||
Available for sale (AFS) fixed maturities | 0 | 0 | 0 |
Level 1 | Other asset-backed securities | |||
Assets: | |||
Available for sale (AFS) fixed maturities | 298 | 0 | 0 |
Level 1 | Corporate and other | |||
Assets: | |||
Available for sale (AFS) fixed maturities | 28 | 41 | 16 |
Level 2 | |||
Assets: | |||
Variable annuity assets (separate accounts) | 668 | 664 | 628 |
Total assets accounted for at fair value | 34,544 | 33,081 | 36,758 |
Liabilities: | |||
Total liabilities accounted for at fair value | 19 | 10 | 10 |
Level 2 | Annuity benefits accumulated | |||
Liabilities: | |||
Derivatives included in annuity benefits accumulated and other liabilities | 0 | 0 | 0 |
Level 2 | Other liabilities | |||
Liabilities: | |||
Derivatives included in annuity benefits accumulated and other liabilities | 19 | 10 | 10 |
Level 2 | Fixed maturities | |||
Assets: | |||
Available for sale (AFS) fixed maturities | 32,932 | 31,399 | 35,061 |
Trading fixed maturities | 40 | 42 | 54 |
Level 2 | U.S. Government and government agencies | |||
Assets: | |||
Available for sale (AFS) fixed maturities | 25 | 23 | 24 |
Level 2 | Equity securities | |||
Assets: | |||
Equity securities, at fair value | 199 | 49 | 41 |
Level 2 | States, municipalities and political subdivisions | |||
Assets: | |||
Available for sale (AFS) fixed maturities | 2,885 | 3,358 | 4,284 |
Level 2 | Foreign government | |||
Assets: | |||
Available for sale (AFS) fixed maturities | 34 | 34 | 34 |
Level 2 | Equity index call options | |||
Assets: | |||
Derivatives including equity index call options and other assets | 646 | 825 | 924 |
Level 2 | Residential MBS | |||
Assets: | |||
Available for sale (AFS) fixed maturities | 2,516 | 2,013 | 1,971 |
Level 2 | Other assets — derivatives | |||
Assets: | |||
Derivatives including equity index call options and other assets | 59 | 102 | 50 |
Level 2 | Commercial MBS | |||
Assets: | |||
Available for sale (AFS) fixed maturities | 593 | 688 | 806 |
Level 2 | Collateralized loan obligations | |||
Assets: | |||
Available for sale (AFS) fixed maturities | 3,290 | 3,443 | 3,365 |
Level 2 | Other asset-backed securities | |||
Assets: | |||
Available for sale (AFS) fixed maturities | 6,742 | 4,107 | 4,357 |
Level 2 | Corporate and other | |||
Assets: | |||
Available for sale (AFS) fixed maturities | 16,847 | 17,733 | 20,220 |
Level 3 | |||
Assets: | |||
Variable annuity assets (separate accounts) | 0 | 0 | 0 |
Total assets accounted for at fair value | 3,206 | 2,970 | 3,092 |
Liabilities: | |||
Total liabilities accounted for at fair value | 4,208 | 3,933 | 3,730 |
Level 3 | Annuity benefits accumulated | |||
Liabilities: | |||
Derivatives included in annuity benefits accumulated and other liabilities | 4,208 | 3,933 | 3,730 |
Level 3 | Other liabilities | |||
Liabilities: | |||
Derivatives included in annuity benefits accumulated and other liabilities | 0 | 0 | 0 |
Level 3 | Fixed maturities | |||
Assets: | |||
Available for sale (AFS) fixed maturities | 2,825 | 2,677 | 2,816 |
Trading fixed maturities | 0 | 0 | 0 |
Level 3 | U.S. Government and government agencies | |||
Assets: | |||
Available for sale (AFS) fixed maturities | 0 | 15 | 15 |
Level 3 | Equity securities | |||
Assets: | |||
Equity securities, at fair value | 381 | 293 | 276 |
Level 3 | States, municipalities and political subdivisions | |||
Assets: | |||
Available for sale (AFS) fixed maturities | 59 | 64 | 65 |
Level 3 | Foreign government | |||
Assets: | |||
Available for sale (AFS) fixed maturities | 0 | 0 | 0 |
Level 3 | Equity index call options | |||
Assets: | |||
Derivatives including equity index call options and other assets | 0 | 0 | 0 |
Level 3 | Residential MBS | |||
Assets: | |||
Available for sale (AFS) fixed maturities | 2 | 127 | 128 |
Level 3 | Other assets — derivatives | |||
Assets: | |||
Derivatives including equity index call options and other assets | 0 | 0 | 0 |
Level 3 | Commercial MBS | |||
Assets: | |||
Available for sale (AFS) fixed maturities | 9 | 10 | 29 |
Level 3 | Collateralized loan obligations | |||
Assets: | |||
Available for sale (AFS) fixed maturities | 0 | 48 | 14 |
Level 3 | Other asset-backed securities | |||
Assets: | |||
Available for sale (AFS) fixed maturities | 1,026 | 1,069 | 1,030 |
Level 3 | Corporate and other | |||
Assets: | |||
Available for sale (AFS) fixed maturities | $ 1,729 | $ 1,344 | $ 1,535 |
Fair Value Measurements - Unobs
Fair Value Measurements - Unobservable inputs used in determining fair value of embedded derivatives (Details) - Embedded derivatives | 9 Months Ended |
Sep. 30, 2021 | |
Unobservable inputs used by management in determining fair value of embedded derivatives | |
Risk margin for uncertainty in cash flows | 0.99% |
Minimum | |
Unobservable inputs used by management in determining fair value of embedded derivatives | |
Adjustment for insurance subsidiary's credit risk | 0.00% |
Surrenders | 7.00% |
Partial surrenders | 2.00% |
Annuitizations | 0.10% |
Deaths | 2.00% |
Budgeted option costs | 2.20% |
Maximum | |
Unobservable inputs used by management in determining fair value of embedded derivatives | |
Adjustment for insurance subsidiary's credit risk | 2.20% |
Surrenders | 22.00% |
Partial surrenders | 10.00% |
Annuitizations | 1.00% |
Deaths | 13.70% |
Budgeted option costs | 2.80% |
Fair Value Measurements - Chang
Fair Value Measurements - Changes in balances of Level 3 financial assets carried at fair value (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Mar. 31, 2018 | Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||||
Financial assets, Beginning Balance | $ 1,799 | $ 2,970 | $ 3,092 | $ 2,835 | $ 1,799 |
Total realized/unrealized gains (losses) included in Net income | 98 | (17) | 8 | (20) | |
Total realized/unrealized gains (losses) included in other comprehensive income (loss) | 39 | 59 | 72 | (35) | |
Purchases and issuances | 634 | 558 | 1,141 | 1,422 | |
Sales and settlements | (535) | (443) | (448) | (354) | |
Transfer into Level 3 | 457 | 495 | 136 | 223 | |
Transfer out of Level 3 | (457) | (774) | (652) | (200) | |
Financial assets, Ending Balance | 3,206 | 2,970 | 3,092 | 2,835 | |
Total fixed maturities | |||||
Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||||
Financial assets, Beginning Balance | 1,694 | 2,677 | 2,816 | 2,623 | 1,694 |
Total realized/unrealized gains (losses) included in Net income | 7 | (16) | 0 | (16) | |
Total realized/unrealized gains (losses) included in other comprehensive income (loss) | 39 | 59 | 72 | (35) | |
Purchases and issuances | 565 | 523 | 1,105 | 1,316 | |
Sales and settlements | (470) | (431) | (446) | (350) | |
Transfer into Level 3 | 457 | 486 | 114 | 203 | |
Transfer out of Level 3 | (450) | (760) | (652) | (189) | |
Financial assets, Ending Balance | 2,825 | 2,677 | 2,816 | 2,623 | |
U.S. government agency | |||||
Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||||
Financial assets, Beginning Balance | 8 | 15 | 15 | 8 | 8 |
Total realized/unrealized gains (losses) included in Net income | 3 | 3 | 0 | 0 | |
Total realized/unrealized gains (losses) included in other comprehensive income (loss) | (18) | (3) | 7 | 0 | |
Purchases and issuances | 0 | 0 | 0 | 0 | |
Sales and settlements | 0 | 0 | 0 | 0 | |
Transfer into Level 3 | 0 | 0 | 0 | 0 | |
Transfer out of Level 3 | 0 | 0 | 0 | 0 | |
Financial assets, Ending Balance | 0 | 15 | 15 | 8 | |
States, municipalities and political subdivisions | |||||
Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||||
Financial assets, Beginning Balance | 72 | 64 | 65 | 59 | 72 |
Total realized/unrealized gains (losses) included in Net income | 0 | 0 | 0 | 0 | |
Total realized/unrealized gains (losses) included in other comprehensive income (loss) | (2) | 4 | 6 | (3) | |
Purchases and issuances | 0 | 0 | 0 | 0 | |
Sales and settlements | (3) | (3) | (3) | (2) | |
Transfer into Level 3 | 0 | 0 | 10 | 0 | |
Transfer out of Level 3 | 0 | (2) | (7) | (8) | |
Financial assets, Ending Balance | 59 | 64 | 65 | 59 | |
Equity securities | |||||
Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||||
Financial assets, Beginning Balance | 105 | 293 | 276 | 212 | 105 |
Total realized/unrealized gains (losses) included in Net income | 91 | (1) | 8 | (4) | |
Total realized/unrealized gains (losses) included in other comprehensive income (loss) | 0 | 0 | 0 | 0 | |
Purchases and issuances | 69 | 35 | 36 | 106 | |
Sales and settlements | (65) | (12) | (2) | (4) | |
Transfer into Level 3 | 20 | 0 | 9 | 22 | 20 |
Transfer out of Level 3 | (7) | (14) | 0 | (11) | |
Financial assets, Ending Balance | 381 | 293 | 276 | 212 | |
Residential MBS | |||||
Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||||
Financial assets, Beginning Balance | 99 | 127 | 128 | 161 | 99 |
Total realized/unrealized gains (losses) included in Net income | (3) | (6) | 3 | (5) | |
Total realized/unrealized gains (losses) included in other comprehensive income (loss) | 1 | (7) | (3) | (4) | |
Purchases and issuances | 0 | 0 | 0 | 0 | |
Sales and settlements | (13) | (13) | (18) | (18) | |
Transfer into Level 3 | 2 | 49 | 36 | 106 | |
Transfer out of Level 3 | (112) | (24) | (51) | (17) | |
Financial assets, Ending Balance | 2 | 127 | 128 | 161 | |
Commercial MBS | |||||
Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||||
Financial assets, Beginning Balance | 34 | 10 | 29 | 48 | 34 |
Total realized/unrealized gains (losses) included in Net income | (1) | 0 | 2 | 0 | |
Total realized/unrealized gains (losses) included in other comprehensive income (loss) | 0 | 0 | 0 | 0 | |
Purchases and issuances | 0 | 0 | 0 | 14 | |
Sales and settlements | (1) | (3) | (13) | 0 | |
Transfer into Level 3 | 8 | 1 | 3 | 0 | |
Transfer out of Level 3 | (7) | (17) | (11) | 0 | |
Financial assets, Ending Balance | 9 | 10 | 29 | 48 | |
Collateralized loan obligations | |||||
Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||||
Financial assets, Beginning Balance | 142 | 48 | 14 | 85 | 142 |
Total realized/unrealized gains (losses) included in Net income | 3 | (5) | (4) | (2) | |
Total realized/unrealized gains (losses) included in other comprehensive income (loss) | (3) | 17 | 4 | (9) | |
Purchases and issuances | 0 | 0 | 0 | 24 | |
Sales and settlements | (1) | 0 | 0 | (11) | |
Transfer into Level 3 | 0 | 135 | 14 | 2 | |
Transfer out of Level 3 | (47) | (113) | (85) | (61) | |
Financial assets, Ending Balance | 0 | 48 | 14 | 85 | |
Other asset-backed securities | |||||
Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||||
Financial assets, Beginning Balance | 398 | 1,069 | 1,030 | 543 | 398 |
Total realized/unrealized gains (losses) included in Net income | 5 | (10) | 0 | 0 | |
Total realized/unrealized gains (losses) included in other comprehensive income (loss) | 3 | 14 | 5 | (1) | |
Purchases and issuances | 330 | 296 | 727 | 292 | |
Sales and settlements | (318) | (282) | (162) | (171) | |
Transfer into Level 3 | 152 | 173 | 23 | 69 | |
Transfer out of Level 3 | (215) | (152) | (106) | (44) | |
Financial assets, Ending Balance | 1,026 | 1,069 | 1,030 | 543 | |
Corporate and other | |||||
Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||||
Financial assets, Beginning Balance | $ 941 | 1,344 | 1,535 | 1,719 | 941 |
Total realized/unrealized gains (losses) included in Net income | 0 | 2 | (1) | (9) | |
Total realized/unrealized gains (losses) included in other comprehensive income (loss) | 58 | 34 | 53 | (18) | |
Purchases and issuances | 235 | 227 | 378 | 986 | |
Sales and settlements | (134) | (130) | (250) | (148) | |
Transfer into Level 3 | 295 | 128 | 28 | 26 | |
Transfer out of Level 3 | (69) | (452) | (392) | (59) | |
Financial assets, Ending Balance | $ 1,729 | $ 1,344 | $ 1,535 | $ 1,719 |
Fair Value Measurements - Cha_2
Fair Value Measurements - Changes in balances of Level 3 financial liabilities carried at fair value (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Financial liabilities, Beginning Balance | $ (3,933) | $ (3,730) | $ (2,720) | $ (2,542) |
Total realized/unrealized gains (losses) included in Net income | (296) | (283) | (919) | 204 |
Total realized/unrealized gains (losses) included in other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Purchases and issuances | (283) | (242) | (333) | (545) |
Sales and settlements | 304 | 322 | 242 | 163 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Financial liabilities, Ending Balance | (4,208) | (3,933) | (3,730) | (2,720) |
Embedded derivatives | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Financial liabilities, Beginning Balance | (3,933) | (3,730) | (2,720) | (2,542) |
Total realized/unrealized gains (losses) included in Net income | (296) | (283) | (919) | 204 |
Total realized/unrealized gains (losses) included in other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Purchases and issuances | (283) | (242) | (333) | (545) |
Sales and settlements | 304 | 322 | 242 | 163 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Financial liabilities, Ending Balance | $ (4,208) | $ (3,933) | $ (3,730) | $ (2,720) |
Fair Value Measurements - The c
Fair Value Measurements - The carrying value and fair value of financial instruments (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Financial assets: | |||
Cash and cash equivalents | $ 1,308 | $ 1,151 | $ 734 |
Mortgage loans | 1,512 | 1,251 | 1,072 |
Policy loans | 142 | 151 | 164 |
Level 1 | |||
Financial assets: | |||
Cash and cash equivalents | 1,308 | 1,151 | 734 |
Mortgage loans | 0 | 0 | 0 |
Policy loans | 0 | 0 | 0 |
Total financial assets not accounted for at fair value | 0 | 1,151 | 734 |
Financial liabilities: | |||
Annuity benefits accumulated | 0 | 0 | 0 |
Total financial liabilities not accounted for at fair value | 0 | 0 | 0 |
Level 2 | |||
Financial assets: | |||
Cash and cash equivalents | 0 | 0 | 0 |
Mortgage loans | 0 | 0 | 0 |
Policy loans | 0 | 0 | 0 |
Total financial assets not accounted for at fair value | 0 | 0 | 0 |
Financial liabilities: | |||
Annuity benefits accumulated | 0 | 0 | 0 |
Total financial liabilities not accounted for at fair value | 0 | 0 | 0 |
Level 3 | |||
Financial assets: | |||
Cash and cash equivalents | 0 | 0 | 0 |
Mortgage loans | 0 | 1,271 | 1,081 |
Policy loans | 0 | 151 | 164 |
Total financial assets not accounted for at fair value | 0 | 1,422 | 1,245 |
Financial liabilities: | |||
Annuity benefits accumulated | 0 | 43,081 | 40,182 |
Total financial liabilities not accounted for at fair value | 0 | 43,081 | 40,182 |
Carrying Value | |||
Financial assets: | |||
Mortgage loans | 1,512 | 1,251 | 1,072 |
Total financial assets not accounted for at fair value | 2,962 | 2,553 | 1,970 |
Financial liabilities: | |||
Annuity benefits accumulated | 0 | 41,460 | 40,160 |
Total financial liabilities not accounted for at fair value | 0 | 41,460 | 40,160 |
Fair Value | |||
Financial assets: | |||
Mortgage loans | 0 | 1,271 | 1,081 |
Total financial assets not accounted for at fair value | 0 | 2,573 | 1,979 |
Financial liabilities: | |||
Annuity benefits accumulated | 0 | 43,081 | 40,182 |
Total financial liabilities not accounted for at fair value | $ 0 | $ 43,081 | $ 40,182 |
Balance Sheet Impact of Net U_3
Balance Sheet Impact of Net Unrealized Gains on Securities - Components of the net unrealized gain on securities included in AOCI (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Securities, Available-for-sale [Abstract] | |||||
Fixed maturities, available for sale at amortized cost | $ 34,003 | $ 31,598 | $ 36,144 | ||
Available for sale (AFS) fixed maturities | 36,083 | 34,123 | 37,899 | ||
Deferred policy acquisition costs | 474 | 302 | 713 | $ 1,381 | $ 943 |
Annuity benefits accumulated | (44,376) | (42,573) | (40,406) | ||
Life, accident and health reserves | (592) | (610) | (612) | ||
Components of the net unrealized gain on securities, included in Accumulated Other Comprehensive Income | |||||
Net unrealized gain, pretax | 1,045 | 1,303 | 865 | ||
Deferred tax on unrealized gain | (219) | (274) | (182) | ||
Net unrealized gain, after tax (included in AOCI) | 826 | 1,029 | 683 | ||
Fixed maturities | |||||
Debt Securities, Available-for-sale [Abstract] | |||||
Fixed maturities, available for sale at amortized cost | 34,003 | 31,598 | 36,144 | ||
Available for sale (AFS) fixed maturities | 36,083 | 34,123 | 37,899 | ||
Components of the net unrealized gain on securities, included in Accumulated Other Comprehensive Income | |||||
Net unrealized gain, pretax | 2,095 | 2,553 | 1,755 | ||
Deferred policy acquisition costs | |||||
Debt Securities, Available-for-sale [Abstract] | |||||
Deferred policy acquisition costs | 474 | 302 | 713 | ||
Components of the net unrealized gain on securities, included in Accumulated Other Comprehensive Income | |||||
Net unrealized gain, pretax | 768 | 934 | 681 | ||
Annuity benefits accumulated | |||||
Debt Securities, Available-for-sale [Abstract] | |||||
Annuity benefits accumulated | (44,376) | (42,573) | (40,406) | ||
Components of the net unrealized gain on securities, included in Accumulated Other Comprehensive Income | |||||
Net unrealized gain, pretax | 287 | 324 | 220 | ||
Life, accident and health reserves | |||||
Debt Securities, Available-for-sale [Abstract] | |||||
Life, accident and health reserves | (592) | (610) | |||
Components of the net unrealized gain on securities, included in Accumulated Other Comprehensive Income | |||||
Net unrealized gain, pretax | 3 | 3 | |||
Unearned revenue (included in other liabilities) | |||||
Debt Securities, Available-for-sale [Abstract] | |||||
Unearned revenue (included in other liabilities) | (17) | (15) | (12) | ||
Components of the net unrealized gain on securities, included in Accumulated Other Comprehensive Income | |||||
Net unrealized gain, pretax | 8 | 11 | 11 | ||
Excluding unrealized gains | |||||
Debt Securities, Available-for-sale [Abstract] | |||||
Deferred policy acquisition costs | 1,263 | 1,273 | 1,412 | $ 1,411 | $ 1,365 |
Excluding unrealized gains | Fixed maturities | |||||
Debt Securities, Available-for-sale [Abstract] | |||||
Fixed maturities, available for sale at amortized cost | 33,988 | 31,570 | 36,144 | ||
Excluding unrealized gains | Deferred policy acquisition costs | |||||
Debt Securities, Available-for-sale [Abstract] | |||||
Deferred policy acquisition costs | 1,242 | 1,236 | 1,394 | ||
Excluding unrealized gains | Annuity benefits accumulated | |||||
Debt Securities, Available-for-sale [Abstract] | |||||
Annuity benefits accumulated | (44,089) | (42,249) | (40,186) | ||
Excluding unrealized gains | Life, accident and health reserves | |||||
Debt Securities, Available-for-sale [Abstract] | |||||
Life, accident and health reserves | (589) | (607) | |||
Excluding unrealized gains | Unearned revenue (included in other liabilities) | |||||
Debt Securities, Available-for-sale [Abstract] | |||||
Unearned revenue (included in other liabilities) | $ (25) | $ (26) | $ (23) |
Investments - Narrative (Detail
Investments - Narrative (Details) $ in Millions | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2021USD ($)security | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($)security | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Schedule of Investments [Line Items] | |||||
Percentage (based on amount of unrealized loss) of available for sale fixed maturities that are in an unrealized loss position and rated investment grade | 65.00% | 76.00% | |||
Percentage (based on fair value) of available for sale fixed maturities that are in an unrealized loss position and rated investment grade | 84.00% | 87.00% | |||
Average life of ABS | 4 years | ||||
Average life of MBS | 0 years | ||||
Investment management charges | $ 19 | $ 6 | $ 8 | $ 11 | $ 7 |
Total fixed maturities | |||||
Schedule of Investments [Line Items] | |||||
Gross unrealized losses on fixed maturities | $ 92 | $ 97 | 68 | ||
Number of fixed maturities in an unrealized loss position | security | 320 | 568 | |||
Residential Mortgage Backed Securities [Member] | |||||
Schedule of Investments [Line Items] | |||||
Gross unrealized losses on fixed maturities | $ 8 | $ 3 | $ 3 | ||
Number of securities purchased with credit deterioration | security | 2 | ||||
Aggregate par value of securities purchased with credit deterioration, at time of purchase | $ 8 | ||||
Aggregate purchase price of securities purchased with credit deterioration, at time of purchase | 6 | ||||
Initial allowance for purchased securities with credit deterioration | $ 1 | ||||
Initial discount for purchased securities with credit deterioration | $ 1 |
Investments - Available for sal
Investments - Available for sale fixed maturities (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | |||
Fixed maturities, available for sale at amortized cost | $ 34,003 | $ 31,598 | $ 36,144 |
Fixed maturities, available for sale, allowance for expected credit losses | 15 | 28 | 0 |
Available for sale (AFS) fixed maturities | 36,083 | 34,123 | 37,899 |
Total fixed maturities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Fixed maturities, available for sale at amortized cost | 34,003 | 31,598 | 36,144 |
Fixed maturities, available for sale, allowance for expected credit losses | 15 | 28 | 0 |
Gross unrealized gains on fixed maturities | 2,187 | 2,650 | 1,823 |
Gross unrealized losses on fixed maturities | (92) | (97) | (68) |
Available-for-sale Securities, Accumulated Gross Unrealized Gain (Loss), before Tax | 2,095 | 2,553 | 1,755 |
Available for sale (AFS) fixed maturities | 36,083 | 34,123 | 37,899 |
U.S. Government and government agencies | |||
Debt Securities, Available-for-sale [Line Items] | |||
Fixed maturities, available for sale at amortized cost | 39 | 40 | 38 |
Fixed maturities, available for sale, allowance for expected credit losses | 0 | 0 | 0 |
Gross unrealized gains on fixed maturities | 2 | 4 | 7 |
Gross unrealized losses on fixed maturities | (16) | 0 | 0 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain (Loss), before Tax | (14) | 4 | 7 |
Available for sale (AFS) fixed maturities | 25 | 44 | 45 |
States, municipalities and political subdivisions | |||
Debt Securities, Available-for-sale [Line Items] | |||
Fixed maturities, available for sale at amortized cost | 2,680 | 3,053 | 4,080 |
Fixed maturities, available for sale, allowance for expected credit losses | 0 | 0 | 0 |
Gross unrealized gains on fixed maturities | 264 | 371 | 270 |
Gross unrealized losses on fixed maturities | 0 | (2) | (1) |
Available-for-sale Securities, Accumulated Gross Unrealized Gain (Loss), before Tax | 264 | 369 | 269 |
Available for sale (AFS) fixed maturities | 2,944 | 3,422 | 4,349 |
Foreign government | |||
Debt Securities, Available-for-sale [Line Items] | |||
Fixed maturities, available for sale at amortized cost | 31 | 31 | 31 |
Fixed maturities, available for sale, allowance for expected credit losses | 0 | 0 | 0 |
Gross unrealized gains on fixed maturities | 3 | 3 | 3 |
Gross unrealized losses on fixed maturities | 0 | 0 | 0 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain (Loss), before Tax | 3 | 3 | 3 |
Available for sale (AFS) fixed maturities | 34 | 34 | 34 |
Residential MBS | |||
Debt Securities, Available-for-sale [Line Items] | |||
Fixed maturities, available for sale at amortized cost | 2,362 | 1,954 | 1,909 |
Fixed maturities, available for sale, allowance for expected credit losses | 2 | 3 | 0 |
Gross unrealized gains on fixed maturities | 166 | 192 | 193 |
Gross unrealized losses on fixed maturities | (8) | (3) | (3) |
Available-for-sale Securities, Accumulated Gross Unrealized Gain (Loss), before Tax | 158 | 189 | 190 |
Available for sale (AFS) fixed maturities | 2,518 | 2,140 | 2,099 |
Commercial MBS | |||
Debt Securities, Available-for-sale [Line Items] | |||
Fixed maturities, available for sale at amortized cost | 573 | 659 | 807 |
Fixed maturities, available for sale, allowance for expected credit losses | 0 | 0 | 0 |
Gross unrealized gains on fixed maturities | 29 | 40 | 28 |
Gross unrealized losses on fixed maturities | 0 | (1) | 0 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain (Loss), before Tax | 29 | 39 | 28 |
Available for sale (AFS) fixed maturities | 602 | 698 | 835 |
Collateralized loan obligations | |||
Debt Securities, Available-for-sale [Line Items] | |||
Fixed maturities, available for sale at amortized cost | 3,279 | 3,490 | 3,401 |
Fixed maturities, available for sale, allowance for expected credit losses | 3 | 10 | 0 |
Gross unrealized gains on fixed maturities | 18 | 24 | 8 |
Gross unrealized losses on fixed maturities | (4) | (13) | (30) |
Available-for-sale Securities, Accumulated Gross Unrealized Gain (Loss), before Tax | 14 | 11 | (22) |
Available for sale (AFS) fixed maturities | 3,290 | 3,491 | 3,379 |
Other asset-backed securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Fixed maturities, available for sale at amortized cost | 7,982 | 5,099 | 5,265 |
Fixed maturities, available for sale, allowance for expected credit losses | 10 | 11 | 0 |
Gross unrealized gains on fixed maturities | 142 | 142 | 138 |
Gross unrealized losses on fixed maturities | (48) | (54) | (16) |
Available-for-sale Securities, Accumulated Gross Unrealized Gain (Loss), before Tax | 94 | 88 | 122 |
Available for sale (AFS) fixed maturities | 8,066 | 5,176 | 5,387 |
Corporate and other | |||
Debt Securities, Available-for-sale [Line Items] | |||
Fixed maturities, available for sale at amortized cost | 17,057 | 17,272 | 20,613 |
Fixed maturities, available for sale, allowance for expected credit losses | 0 | 4 | 0 |
Gross unrealized gains on fixed maturities | 1,563 | 1,874 | 1,176 |
Gross unrealized losses on fixed maturities | (16) | (24) | (18) |
Available-for-sale Securities, Accumulated Gross Unrealized Gain (Loss), before Tax | 1,547 | 1,850 | 1,158 |
Available for sale (AFS) fixed maturities | $ 18,604 | $ 19,118 | $ 21,771 |
Investments - Equity securities
Investments - Equity securities reported at fair value (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Debt and Equity Securities, FV-NI [Line Items] | |||
Equity securities, at fair value | $ 648 | $ 773 | $ 809 |
Equity securities | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Equity securities, at cost | 0 | 756 | 746 |
Equity securities, at fair value | 648 | 773 | 809 |
Equity securities, fair value in excess of cost | 0 | 17 | 63 |
Common stocks | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Equity securities, at cost | 0 | 423 | 497 |
Equity securities, at fair value | 241 | 412 | 552 |
Equity securities, fair value in excess of cost | 0 | (11) | 55 |
Perpetual preferred stocks | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Equity securities, at cost | 0 | 333 | 249 |
Equity securities, at fair value | 407 | 361 | 257 |
Equity securities, fair value in excess of cost | $ 0 | $ 28 | $ 8 |
Investments - Gross unrealized
Investments - Gross unrealized losses on securities by investment category and length of time that have been in a continuous unrealized loss position (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Total fixed maturities | |||
Available-for-sale securities in a continuous unrealized loss position | |||
Unrealized Loss - Less than twelve months | $ (75) | $ (62) | $ (34) |
Fair Value - Less than twelve months | $ 4,488 | $ 2,430 | $ 3,201 |
Fair Value as % of Cost - Less than twelve months | 98.00% | 98.00% | 99.00% |
Unrealized Loss - Twelve months or more | $ (17) | $ (35) | $ (34) |
Fair Value - Twelve months or more | $ 732 | $ 1,686 | $ 1,676 |
Fair Value as % of Cost - Twelve months or more | 98.00% | 98.00% | 98.00% |
U.S. Government and government agencies | |||
Available-for-sale securities in a continuous unrealized loss position | |||
Unrealized Loss - Less than twelve months | $ (16) | $ 0 | $ 0 |
Fair Value - Less than twelve months | $ 1 | $ 0 | $ 0 |
Fair Value as % of Cost - Less than twelve months | 6.00% | 0.00% | 0.00% |
Unrealized Loss - Twelve months or more | $ 0 | $ 0 | $ 0 |
Fair Value - Twelve months or more | $ 0 | $ 0 | $ 0 |
Fair Value as % of Cost - Twelve months or more | 0.00% | 0.00% | 0.00% |
States, municipalities and political subdivisions | |||
Available-for-sale securities in a continuous unrealized loss position | |||
Unrealized Loss - Less than twelve months | $ 0 | $ (2) | $ (1) |
Fair Value - Less than twelve months | $ 5 | $ 80 | $ 105 |
Fair Value as % of Cost - Less than twelve months | 100.00% | 98.00% | 99.00% |
Unrealized Loss - Twelve months or more | $ 0 | $ 0 | $ 0 |
Fair Value - Twelve months or more | $ 0 | $ 0 | $ 5 |
Fair Value as % of Cost - Twelve months or more | 0.00% | 0.00% | 100.00% |
Residential MBS | |||
Available-for-sale securities in a continuous unrealized loss position | |||
Unrealized Loss - Less than twelve months | $ (6) | $ (2) | $ (2) |
Fair Value - Less than twelve months | $ 907 | $ 124 | $ 315 |
Fair Value as % of Cost - Less than twelve months | 99.00% | 98.00% | 99.00% |
Unrealized Loss - Twelve months or more | $ (2) | $ (1) | $ (1) |
Fair Value - Twelve months or more | $ 20 | $ 23 | $ 15 |
Fair Value as % of Cost - Twelve months or more | 91.00% | 96.00% | 94.00% |
Commercial MBS | |||
Available-for-sale securities in a continuous unrealized loss position | |||
Unrealized Loss - Less than twelve months | $ 0 | $ (1) | $ 0 |
Fair Value - Less than twelve months | $ 9 | $ 32 | $ 11 |
Fair Value as % of Cost - Less than twelve months | 100.00% | 97.00% | 100.00% |
Unrealized Loss - Twelve months or more | $ 0 | $ 0 | $ 0 |
Fair Value - Twelve months or more | $ 0 | $ 5 | $ 0 |
Fair Value as % of Cost - Twelve months or more | 0.00% | 100.00% | 0.00% |
Collateralized loan obligations | |||
Available-for-sale securities in a continuous unrealized loss position | |||
Unrealized Loss - Less than twelve months | $ (3) | $ (2) | $ (9) |
Fair Value - Less than twelve months | $ 433 | $ 496 | $ 995 |
Fair Value as % of Cost - Less than twelve months | 99.00% | 100.00% | 99.00% |
Unrealized Loss - Twelve months or more | $ (1) | $ (11) | $ (21) |
Fair Value - Twelve months or more | $ 259 | $ 1,256 | $ 1,363 |
Fair Value as % of Cost - Twelve months or more | 100.00% | 99.00% | 98.00% |
Other asset-backed securities | |||
Available-for-sale securities in a continuous unrealized loss position | |||
Unrealized Loss - Less than twelve months | $ (37) | $ (35) | $ (11) |
Fair Value - Less than twelve months | $ 2,410 | $ 974 | $ 838 |
Fair Value as % of Cost - Less than twelve months | 98.00% | 97.00% | 99.00% |
Unrealized Loss - Twelve months or more | $ (11) | $ (19) | $ (5) |
Fair Value - Twelve months or more | $ 314 | $ 295 | $ 91 |
Fair Value as % of Cost - Twelve months or more | 97.00% | 94.00% | 95.00% |
Corporate and other | |||
Available-for-sale securities in a continuous unrealized loss position | |||
Unrealized Loss - Less than twelve months | $ (13) | $ (20) | $ (11) |
Fair Value - Less than twelve months | $ 723 | $ 724 | $ 937 |
Fair Value as % of Cost - Less than twelve months | 98.00% | 97.00% | 99.00% |
Unrealized Loss - Twelve months or more | $ (3) | $ (4) | $ (7) |
Fair Value - Twelve months or more | $ 139 | $ 107 | $ 202 |
Fair Value as % of Cost - Twelve months or more | 98.00% | 96.00% | 97.00% |
Investments - Allowance for cre
Investments - Allowance for credit losses on fixed maturities (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Allowance for Credit Losses [Roll Forward] | ||
Beginning balance | $ 28 | $ 0 |
Impact of adoption of new accounting policy | 0 | 0 |
Initial allowance for purchased securities with credit deterioration | 0 | 1 |
Provision for expected credit losses on securities with no previous allowance | 1 | 51 |
Additions (reductions) to previously recognized expected credit losses | (8) | (19) |
Reductions due to sales or redemptions | (6) | (5) |
Ending balance | 15 | 28 |
Structured Securities | ||
Allowance for Credit Losses [Roll Forward] | ||
Beginning balance | 24 | 0 |
Impact of adoption of new accounting policy | 0 | 0 |
Initial allowance for purchased securities with credit deterioration | 0 | 1 |
Provision for expected credit losses on securities with no previous allowance | 0 | 28 |
Additions (reductions) to previously recognized expected credit losses | (7) | (5) |
Reductions due to sales or redemptions | (2) | 0 |
Ending balance | 15 | 24 |
Corporate and other | ||
Allowance for Credit Losses [Roll Forward] | ||
Beginning balance | 4 | 0 |
Impact of adoption of new accounting policy | 0 | 0 |
Initial allowance for purchased securities with credit deterioration | 0 | 0 |
Provision for expected credit losses on securities with no previous allowance | 1 | 23 |
Additions (reductions) to previously recognized expected credit losses | (1) | (14) |
Reductions due to sales or redemptions | (4) | (5) |
Ending balance | $ 0 | $ 4 |
Investments - Scheduled maturit
Investments - Scheduled maturities of available for sale fixed maturities (Details) - Fixed maturities - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Amortized Cost Basis, Fiscal Year Maturity [Abstract] | ||
One year or less | $ 1,577 | $ 1,975 |
After one year through five years | 8,006 | 7,761 |
After five years through ten years | 7,032 | 8,198 |
After ten years | 3,192 | 2,458 |
Fixed maturities amortized cost, Subtotal | 19,807 | 20,392 |
Collateralized loan obligations and other ABS (average life of approximately 4 years) | 11,248 | 8,568 |
MBS (average life of approximately 3-1/2 years) | 2,933 | 2,610 |
Amortized Cost | 33,988 | 31,570 |
Fair Value, Fiscal Year Maturity [Abstract] | ||
One year or less | 1,617 | 1,995 |
After one year through five years | 8,652 | 8,442 |
After five years through ten years | 7,860 | 9,402 |
After ten years | 3,478 | 2,779 |
Fixed maturities fair value, Subtotal | 21,607 | 22,618 |
Collateralized loan obligations and other ABS (average life of approximately 4 years) | 11,356 | 8,667 |
MBS (average life of approximately 3-1/2 years) | 3,120 | 2,838 |
Fair Value | $ 36,083 | $ 34,123 |
Fair Value Percent, Fiscal Year Maturity [Abstract] | ||
One year or less | 4.00% | 6.00% |
After one year through five years | 24.00% | 25.00% |
After five years through ten years | 22.00% | 28.00% |
After ten years | 10.00% | 8.00% |
Fixed maturities fair value, Subtotal, Percent | 60.00% | 67.00% |
Collateralized loan obligations and other ABS (average life of approximately 4 years) | 31.00% | 25.00% |
MBS (average life of approximately 3-1/2 years) | 9.00% | 8.00% |
Fair value, Total, Percent | 100.00% | 100.00% |
Investments - Investment income
Investments - Investment income earned and investment expenses incurred (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Net Investment Income [Line Items] | |||||
Gross investment income | $ 1,354 | $ 1,295 | $ 1,740 | $ 1,829 | $ 1,670 |
Investment expenses | (24) | (12) | (23) | (16) | (13) |
Net investment income | 1,330 | 1,283 | 1,717 | 1,813 | 1,657 |
Fixed maturities | |||||
Net Investment Income [Line Items] | |||||
Gross investment income | 1,059 | 1,216 | 1,577 | 1,600 | 1,450 |
Equity securities | |||||
Net Investment Income [Line Items] | |||||
Gross investment income | 14 | 22 | 28 | 34 | 30 |
Equity in earnings of partnerships and similar investments | |||||
Net Investment Income [Line Items] | |||||
Gross investment income | 169 | 14 | 48 | 90 | 96 |
Mortgage loans | |||||
Net Investment Income [Line Items] | |||||
Gross investment income | 43 | 40 | 54 | 43 | 45 |
Policy loans | |||||
Net Investment Income [Line Items] | |||||
Gross investment income | 6 | 7 | 9 | 9 | 10 |
Real estate and other | |||||
Net Investment Income [Line Items] | |||||
Gross investment income | 27 | 7 | 7 | 36 | 26 |
Accounting Standards Update 2016-01 | Equity securities | |||||
Net Investment Income [Line Items] | |||||
Gross investment income | $ 36 | $ 3 | $ 17 | $ 17 | $ 13 |
Investments - Realized gains (l
Investments - Realized gains (losses) and changes in unrealized appreciation (depreciation) related to fixed maturity and equity security investments (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Realized gains (losses) and changes in unrealized appreciation (depreciation) related to fixed maturity and equity security investments | |||||
Realized before impairments | $ (51) | $ (1) | $ 11 | ||
Realized - impairments | 11 | 11 | 7 | ||
Realized gains (losses) on securities | $ 112 | $ (105) | 365 | 132 | (105) |
Change in Unrealized | (360) | (835) | 502 | ||
Net of tax | |||||
Realized gains (losses) and changes in unrealized appreciation (depreciation) related to fixed maturity and equity security investments | |||||
Realized before impairments | 85 | (60) | 305 | 112 | (72) |
Realized - impairments | 4 | (23) | (17) | (8) | (11) |
Realized gains (losses) on securities | 89 | (83) | 288 | 104 | (83) |
Change in Unrealized | (203) | 322 | 346 | 641 | (438) |
Total pretax | |||||
Realized gains (losses) and changes in unrealized appreciation (depreciation) related to fixed maturity and equity security investments | |||||
Realized before impairments | 107 | (76) | 386 | 142 | (91) |
Realized - impairments | 5 | (29) | (21) | (10) | (14) |
Realized gains (losses) on securities | 112 | (105) | 365 | 132 | (105) |
Change in Unrealized | (258) | 407 | 438 | 812 | (555) |
Fixed maturities | |||||
Realized gains (losses) and changes in unrealized appreciation (depreciation) related to fixed maturity and equity security investments | |||||
Realized before impairments | 21 | 38 | 461 | 19 | 5 |
Realized - impairments | 7 | (43) | (32) | (21) | (21) |
Realized gains (losses) on securities | 28 | (5) | 429 | (2) | (16) |
Change in Unrealized | (458) | 933 | 798 | 1,647 | (1,057) |
Equity securities | |||||
Realized gains (losses) and changes in unrealized appreciation (depreciation) related to fixed maturity and equity security investments | |||||
Realized before impairments | 84 | (111) | (27) | 122 | (107) |
Realized - impairments | 0 | 0 | 0 | 0 | 0 |
Realized gains (losses) on securities | 84 | (111) | (27) | 122 | (107) |
Change in Unrealized | 0 | 0 | 0 | 0 | 0 |
Mortgage loans and other investments | |||||
Realized gains (losses) and changes in unrealized appreciation (depreciation) related to fixed maturity and equity security investments | |||||
Realized before impairments | 3 | 3 | 3 | 2 | 0 |
Realized - impairments | 0 | 0 | 0 | 0 | 0 |
Realized gains (losses) on securities | 3 | 3 | 3 | 2 | 0 |
Change in Unrealized | 0 | 0 | 0 | 0 | 0 |
Other, Including DPAC and reserves on annuity and long-term care | |||||
Realized gains (losses) and changes in unrealized appreciation (depreciation) related to fixed maturity and equity security investments | |||||
Realized before impairments | (1) | (6) | |||
Realized - impairments | (2) | 14 | |||
Realized gains (losses) on securities | (3) | 8 | (40) | 10 | 18 |
Change in Unrealized | 200 | (526) | |||
Total tax effects | |||||
Realized gains (losses) and changes in unrealized appreciation (depreciation) related to fixed maturity and equity security investments | |||||
Realized before impairments | (22) | 16 | (81) | (30) | 19 |
Realized - impairments | (1) | 6 | 4 | 2 | 3 |
Realized gains (losses) on securities | (23) | 22 | (77) | (28) | 22 |
Change in Unrealized | $ 55 | $ (85) | $ (92) | $ (171) | $ 117 |
Investments - Holding gains (lo
Investments - Holding gains (losses) on equity securities still held (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Holding Gains (Losses) on Equity Securities Still Held [Line Items] | |||||
Realized gains (losses) on securities still owned | $ 112 | $ (105) | $ 365 | $ 132 | $ (105) |
Included in net investment income | 1,354 | 1,295 | 1,740 | 1,829 | 1,670 |
Equity securities | |||||
Holding Gains (Losses) on Equity Securities Still Held [Line Items] | |||||
Realized gains (losses) on securities still owned | 84 | (111) | (27) | 122 | $ (107) |
Accounting Standards Update 2016-01 | Equity securities | Equity securities still owned | |||||
Holding Gains (Losses) on Equity Securities Still Held [Line Items] | |||||
Net holding gains (losses) on equity securities | 85 | (123) | (14) | 140 | |
Accounting Standards Update 2016-01 | Realized gains (losses) on securities | Equity securities | Equity securities still owned | |||||
Holding Gains (Losses) on Equity Securities Still Held [Line Items] | |||||
Realized gains (losses) on securities still owned | 50 | (126) | (25) | 123 | |
Accounting Standards Update 2016-01 | Investment income | Equity securities | Equity securities still owned | |||||
Holding Gains (Losses) on Equity Securities Still Held [Line Items] | |||||
Included in net investment income | $ 35 | $ 3 | $ 11 | $ 17 |
Investments - Gross realized ga
Investments - Gross realized gains and losses on available for sale fixed maturity investment transactions (Details) - Fixed maturities - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Gross realized gains and losses on the sale of available for sale fixed maturity and equity security investments | |||||
Gross gains | $ 82 | $ 69 | $ 514 | $ 30 | $ 17 |
Gross losses | $ (1) | $ (30) | $ (51) | $ (16) | $ (12) |
Derivatives - Narrative (Detail
Derivatives - Narrative (Details) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Jun. 30, 2020USD ($)swap | Mar. 31, 2020USD ($)swap | Sep. 30, 2021USD ($)swap | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Carrying value of collateral received to support purchased call options | $ 318 | $ 351 | $ 577 | |||
Annuity benefits | Not designated as hedging instrument | Fixed-indexed and registered index-linked annuities (embedded derivative) | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
The portion of the change in fair value of the embedded derivative related to the unlocking of actuarial assumptions | 240 | 181 | $ (44) | |||
Cash Flow Hedges | Designated as Hedging Instrument | Interest rate swaps | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Number of interest rate swaps designated and qualifying as a cash flow hedges | swap | 9 | |||||
Derivative, notional amount | $ 1,540 | 1,630 | 1,980 | |||
Gain (loss) reclassified from AOCI into net investment income | 26 | 40 | 3 | $ 3 | ||
Collateral receivable supporting interest rate swaps | 44 | 2 | 20 | |||
Other assets — derivatives | Cash Flow Hedges | Designated as Hedging Instrument | Interest rate swaps | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Net derivatives, at fair value | 60 | 102 | 50 | |||
Other liabilities | Cash Flow Hedges | Designated as Hedging Instrument | Interest rate swaps | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Net derivatives, at fair value | $ 0 | $ 0 | $ 5 | |||
Contract termination | Cash Flow Hedges | Interest rate swaps | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Derivative, notional amount | $ 166 | $ 83 | ||||
Number of interest rate swaps terminated | swap | 2 | 1 | ||||
Facility closing | Cash Flow Hedges | Interest rate swaps | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Derivative, notional amount | $ 44 | |||||
Number of interest rate swaps expired during the period | swap | 1 |
Derivatives - Derivatives that
Derivatives - Derivatives that do not qualify for hedge accounting under GAAP included in the Balance Sheet at fair value (Details) - Not designated as hedging instrument - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Derivatives included in AFG' s Balance Sheet at fair value | |||
Derivative asset, at fair value | $ 763 | $ 962 | $ 998 |
Derivative liability, at fair value | 4,199 | 3,943 | 3,735 |
MBS with embedded derivatives | Fixed maturities | |||
Derivatives included in AFG' s Balance Sheet at fair value | |||
Derivative asset, at fair value | 117 | 137 | 74 |
Fixed-indexed and registered index-linked annuities (embedded derivative) | Annuity benefits accumulated | |||
Derivatives included in AFG' s Balance Sheet at fair value | |||
Derivative liability, at fair value | 4,208 | 3,933 | 3,730 |
Equity index call options | Equity index call options | |||
Derivatives included in AFG' s Balance Sheet at fair value | |||
Derivative asset, at fair value | 646 | 825 | 924 |
Equity index put options | Other liabilities | |||
Derivatives included in AFG' s Balance Sheet at fair value | |||
Derivative liability, at fair value | (14) | 5 | 1 |
Reinsurance contract (embedded derivative) | Other liabilities | |||
Derivatives included in AFG' s Balance Sheet at fair value | |||
Derivative liability, at fair value | $ 5 | $ 5 | $ 4 |
Derivatives - Gain (loss) inclu
Derivatives - Gain (loss) included in the Statement of Earnings for changes in the fair value of derivatives that do not qualify for hedge accounting (Details) - Not designated as hedging instrument - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative, Gain (Loss) on Derivative, Net [Abstract] | |||||
Net gain (loss) on derivatives not designated as hedging instruments | $ 565 | $ 2 | $ (60) | $ (110) | $ (100) |
MBS with embedded derivatives | Realized gains (losses) on securities | |||||
Derivative, Gain (Loss) on Derivative, Net [Abstract] | |||||
Net gain (loss) on derivatives not designated as hedging instruments | (18) | 2 | (2) | 5 | (4) |
Public company warrants | Realized gains (losses) on securities | |||||
Derivative, Gain (Loss) on Derivative, Net [Abstract] | |||||
Net gain (loss) on derivatives not designated as hedging instruments | 0 | 0 | 0 | 0 | (3) |
Fixed-indexed and registered index-linked annuities (embedded derivative) | Annuity benefits | |||||
Derivative, Gain (Loss) on Derivative, Net [Abstract] | |||||
Net gain (loss) on derivatives not designated as hedging instruments | 296 | 41 | (283) | (919) | 204 |
Equity index call options | Annuity benefits | |||||
Derivative, Gain (Loss) on Derivative, Net [Abstract] | |||||
Net gain (loss) on derivatives not designated as hedging instruments | 282 | (42) | 223 | 804 | (298) |
Equity index put options | Annuity benefits | |||||
Derivative, Gain (Loss) on Derivative, Net [Abstract] | |||||
Net gain (loss) on derivatives not designated as hedging instruments | 5 | 1 | 3 | 2 | (1) |
Reinsurance contract (embedded derivative) | Net investment income | |||||
Derivative, Gain (Loss) on Derivative, Net [Abstract] | |||||
Net gain (loss) on derivatives not designated as hedging instruments | $ 0 | $ 0 | $ (1) | $ (2) | $ 2 |
Deferred Policy Acquisition C_3
Deferred Policy Acquisition Costs - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Sep. 30, 2021 | |
Deferred Policy Acquisition Costs Disclosures [Abstract] | ||
Accumulated amortization of present value of future profits | $ 160 | $ 163 |
Approximate annual rate of decrease in present value of future profits during next five years | 14.29% |
Deferred Policy Acquisition C_4
Deferred Policy Acquisition Costs - Progression of deferred policy acquisition costs (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||||
Deferred policy acquisition costs, beginning balance | $ 1,170 | $ 1,301 | $ 1,283 | $ 1,214 |
Deferred policy acquisition costs, additions | 185 | 155 | 206 | 263 |
Deferred policy acquisition costs, periodic amortization | (182) | (126) | (120) | (237) |
Deferred policy acquisition costs, annuity unlocking | 0 | (118) | (76) | 29 |
Deferred policy acquisition costs, change included in realized gains | (3) | (42) | 8 | 14 |
Deferred policy acquisition costs, ending balance | 1,170 | 1,170 | 1,301 | 1,283 |
Movement in Deferred Sales Inducements [Roll Forward] | ||||
Deferred sales inducements, beginning balance | 73 | 75 | 86 | 102 |
Deferred sales inducements, additions | 0 | 2 | 2 | 2 |
Deferred sales inducements, periodic amortization | (6) | (9) | (13) | (19) |
Deferred sales inducements, annuity unlocking | 0 | 4 | (1) | 0 |
Deferred sales inducements, change included in realized gains | 0 | 1 | 1 | 1 |
Deferred sales inducements, ending balance | 67 | 73 | 75 | 86 |
Movement in Present Value of Future Insurance Profits [Roll Forward] | ||||
Present value of future profits, beginning balance | 30 | 36 | 42 | 49 |
Present value of future profits, periodic amortization | (4) | (6) | (6) | (7) |
Present value of future profits, annuity unlocking | 0 | 0 | 0 | 0 |
Present value of future profits, other | 0 | |||
Present value of future profits, ending balance | 26 | 30 | 36 | 42 |
Movement in Unrealized Gains (Losses) Related to Deferred Policy Acquisition Costs and Present Value of Future Profits [Roll Forward] | ||||
Unrealized investment gains (losses), beginning balance | (971) | (699) | (30) | (422) |
Unrealized investment gains (losses), change in unrealized | 182 | (272) | (669) | 392 |
Unrealized investment gains (losses), ending balance | (789) | (971) | (699) | (30) |
Movement Analysis of Deferred Policy Acquisition Costs and Present Value of Future Profits [Roll Forward] | ||||
Deferred policy acquisition costs and present value of future profits, beginning balance | 302 | 713 | 1,381 | 943 |
Deferred policy acquisition costs and present value of future profits, additions | 185 | 157 | 208 | 265 |
Deferred policy acquisition costs and present value of future profits, periodic amortization | (192) | (141) | (139) | (263) |
Deferred policy acquisition costs and present value of future profits, annuity unlocking | 0 | (114) | (77) | 29 |
Deferred policy acquisition costs and present value of future profits, change included in realized gains | (3) | (41) | 9 | 15 |
Deferred policy acquisition costs and present value of future profits, other | 0 | |||
Deferred policy acquisition costs and present value of future profits, change in unrealized | 182 | (272) | (669) | 392 |
Deferred policy acquisition costs and present value of future profits, ending balance | 474 | 302 | 713 | 1,381 |
Excluding unrealized gains | ||||
Movement Analysis of Deferred Policy Acquisition Costs and Present Value of Future Profits [Roll Forward] | ||||
Deferred policy acquisition costs and present value of future profits, beginning balance | 1,273 | 1,412 | 1,411 | 1,365 |
Deferred policy acquisition costs and present value of future profits, additions | 185 | 157 | 208 | 265 |
Deferred policy acquisition costs and present value of future profits, periodic amortization | (192) | (141) | (139) | (263) |
Deferred policy acquisition costs and present value of future profits, annuity unlocking | 0 | (114) | (77) | 29 |
Deferred policy acquisition costs and present value of future profits, change included in realized gains | (3) | (41) | 9 | 15 |
Deferred policy acquisition costs and present value of future profits, other | 0 | |||
Deferred policy acquisition costs and present value of future profits, change in unrealized | 0 | 0 | 0 | 0 |
Deferred policy acquisition costs and present value of future profits, ending balance | $ 1,263 | $ 1,273 | $ 1,412 | $ 1,411 |
Shareholder's Equity - Narrativ
Shareholder's Equity - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Stockholders' equity, including portion attributable to noncontrolling interest | $ 3,738 | $ 3,995 | $ 3,481 | $ 2,539 | $ 2,808 | |
Components of accumulated other comprehensive income | ||||||
Non-cash capital contributions from parent | $ 1 | 12 | $ 19 | $ 17 | ||
Accumulated Net Investment Gain (Loss) Attributable to Parent | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Stockholders' equity, including portion attributable to noncontrolling interest | $ (90) | |||||
Cumulative Effect, Period of Adoption, Adjustment | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Stockholders' equity, including portion attributable to noncontrolling interest | $ (5) | $ 3 | ||||
Cumulative Effect, Period of Adoption, Adjustment | Accumulated Net Investment Gain (Loss) Attributable to Parent | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Stockholders' equity, including portion attributable to noncontrolling interest | $ (90) |
Shareholder's Equity - Progress
Shareholder's Equity - Progression of the components of accumulated other comprehensive income (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |||||
Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | |
Accumulated Other Comprehensive Income [Roll Forward] | |||||||
AOCI beginning balance | $ 1,070 | $ 700 | $ 700 | ||||
Other comprehensive income (loss), net of tax | (222) | 346 | 370 | $ 669 | $ (436) | ||
Stockholders' equity, including portion attributable to noncontrolling interest | 3,738 | 3,995 | 3,481 | 2,539 | $ 2,808 | ||
AOCI ending balance | 848 | 1,070 | 700 | ||||
Accumulated Net Investment Gain (Loss) Including Portion Attributable to Noncontrolling Interest | |||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Other comprehensive income (loss), unrealized holding gains on securities arising during the period, Pretax | (233) | 834 | 828 | (561) | |||
Other comprehensive income (loss), unrealized holding gains on securities arising during the period, tax | 49 | (175) | (174) | 118 | |||
Other comprehensive income (loss), unrealized holding gains on securities arising during the period, net of tax | (184) | 659 | 654 | (443) | |||
Reclassification from accumulated other comprehensive income, pretax | (25) | (396) | (16) | 6 | |||
Reclassification from accumulated other comprehensive income, tax | 6 | 83 | 3 | (1) | |||
Reclassification from accumulated other comprehensive income, net of tax | (19) | (313) | (13) | 5 | |||
Accumulated Other Comprehensive Income [Roll Forward] | |||||||
Other comprehensive income (loss), pretax | (258) | 438 | 812 | (555) | |||
Other comprehensive income (loss), tax | 55 | (92) | (171) | 117 | |||
Other comprehensive income (loss), net of tax | (203) | 346 | 641 | (438) | |||
Accumulated Net Investment Gain (Loss) Attributable to Parent | |||||||
Accumulated Other Comprehensive Income [Roll Forward] | |||||||
AOCI beginning balance | 1,029 | 683 | 683 | 42 | 570 | ||
Stockholders' equity, including portion attributable to noncontrolling interest | $ (90) | ||||||
AOCI ending balance | 826 | 1,029 | 683 | 42 | |||
Accumulated Net Gain (Loss) from Cash Flow Hedges Including Portion Attributable to Noncontrolling Interest | |||||||
Accumulated Other Comprehensive Income [Roll Forward] | |||||||
Other comprehensive income (loss), pretax | (24) | 30 | 36 | 2 | |||
Other comprehensive income (loss), tax | 5 | (6) | (8) | 0 | |||
Other comprehensive income (loss), net of tax | (19) | 24 | 28 | 2 | |||
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent | |||||||
Accumulated Other Comprehensive Income [Roll Forward] | |||||||
AOCI beginning balance | 41 | 17 | 17 | (11) | (13) | ||
Stockholders' equity, including portion attributable to noncontrolling interest | 0 | ||||||
AOCI ending balance | 22 | 41 | 17 | (11) | |||
AOCI Including Portion Attributable to Noncontrolling Interest | |||||||
Accumulated Other Comprehensive Income [Roll Forward] | |||||||
Other comprehensive income (loss), pretax | (282) | 468 | 848 | (553) | |||
Other comprehensive income (loss), tax | 60 | (98) | (179) | 117 | |||
Other comprehensive income (loss), net of tax | (222) | 370 | 669 | (436) | |||
AOCI Attributable to Parent | |||||||
Accumulated Other Comprehensive Income [Roll Forward] | |||||||
AOCI beginning balance | 1,070 | $ 700 | 700 | 31 | 557 | ||
Other comprehensive income (loss), net of tax | (222) | 370 | 669 | (436) | |||
Stockholders' equity, including portion attributable to noncontrolling interest | 848 | 1,070 | 700 | 31 | $ (90) | $ 557 | |
AOCI ending balance | $ 848 | $ 1,070 | $ 700 | $ 31 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Reconciliation [Line Items] | |||||
Statutory rate of income taxes | 21.00% | 23.00% | 21.00% | 21.00% | 21.00% |
Cash payments for income taxes | $ 90,000,000 | $ 163,000,000 | $ 106,000,000 | ||
Charge for valuation allowance | |||||
Income Tax Reconciliation [Line Items] | |||||
Charge for valuation allowance against deferred tax assets | $ 0 | $ 0 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of income taxes at the statutory rate to the provision for income taxes (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||||
Earnings before income taxes ("EBT") | $ 417 | $ (22) | $ 529 | $ 497 | $ 256 |
Income taxes at statutory rate | 88 | (5) | 111 | 104 | 54 |
Effect of permanent items | 19 | (3) | (4) | (2) | (7) |
Provision for income taxes as shown in the statement of earnings | $ 107 | $ (8) | $ 107 | $ 102 | $ 47 |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||||
Income taxes at statutory rate as a percentage of EBT | 21.00% | 23.00% | 21.00% | 21.00% | 21.00% |
Effect of permanent items as a percentage of EBT | 5.00% | (13.00%) | (1.00%) | 0.00% | (3.00%) |
Provision for income taxes as shown in the Statement of Earnings as a percentage of EBT | 26.00% | (36.00%) | 20.00% | 21.00% | 18.00% |
Income Taxes - Total income tax
Income Taxes - Total income tax provision (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Current taxes: | |||||
Federal | $ 60 | $ 152 | $ 130 | ||
State | 2 | 4 | 3 | ||
Deferred taxes: | |||||
Federal | 45 | (54) | (86) | ||
Provision for income taxes as shown in the statement of earnings | $ 107 | $ (8) | $ 107 | $ 102 | $ 47 |
Income Taxes - Significant comp
Income Taxes - Significant components of deferred tax assets and liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax assets: | ||
Insurance claims and reserves | $ 599 | $ 647 |
Other, net | 8 | 5 |
Total deferred tax assets | 607 | 652 |
Deferred tax liabilities: | ||
Investment securities | (634) | (447) |
Deferred policy acquisition costs | (15) | (93) |
Insurance claims and reserves transition liability | (57) | (68) |
Total deferred tax liabilities | (706) | (608) |
Net deferred tax asset (liability) | 44 | |
Net deferred tax asset (liability) | (99) | |
Excluding unrealized gains | ||
Deferred tax assets: | ||
Insurance claims and reserves | 531 | 601 |
Other, net | 10 | 7 |
Total deferred tax assets | 541 | 608 |
Deferred tax liabilities: | ||
Investment securities | (97) | (78) |
Deferred policy acquisition costs | (212) | (236) |
Insurance claims and reserves transition liability | (57) | (68) |
Total deferred tax liabilities | (366) | (382) |
Net deferred tax asset (liability) | 175 | 226 |
Impact of Unrealized Gains | ||
Deferred tax assets: | ||
Insurance claims and reserves | 68 | 46 |
Other, net | (2) | (2) |
Total deferred tax assets | 66 | 44 |
Deferred tax liabilities: | ||
Investment securities | (537) | (369) |
Deferred policy acquisition costs, impact of unrealized gains | 197 | 143 |
Insurance claims and reserves transition liability | 0 | 0 |
Total deferred tax liabilities | (340) | (226) |
Net deferred tax asset (liability) | $ (274) | $ (182) |
Insurance - Narrative (Details)
Insurance - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Insurance [Line Items] | ||||||
Carrying value of securities owned by U.S.-based insurance subsidiaries on deposit | $ 30 | $ 30 | ||||
Investment in Federal Home Loan Bank capital stock | $ 53 | |||||
Proceeds advanced from Federal Home Loan Bank | 0 | $ 200 | 200 | $ 0 | $ 225 | |
Payments for FHLBank Advance, Investing Activities | 731 | 40 | 165 | 0 | 0 | |
Advances from Federal Home Loan Bank | 1,130 | $ 400 | 1,130 | |||
Statutory Dividend Payment Restrictions Disclosure | The maximum amount of dividends that can be paid to shareholders in 2021 by life insurance companies domiciled in the State of Ohio without prior approval of the Insurance Commissioner is the greater of 10% of statutory surplus as regards to policyholders or statutory net earnings as of the preceding December 31, but only to the extent of statutory earned surplus as of the preceding December 31. | |||||
Fair value of mortgage-backed securities held as collateral by the Federal Home Loan Bank | 1,370 | $ 1,570 | 1,370 | |||
Interest on advances from Federal Home Loan Bank | 4 | 9 | 11 | 27 | ||
Dividends | 300 | $ 285 | 140 | 60 | ||
Percentage threshold of dividends paid in previous twelve months to earned statutory surplus of prior year end, requiring approval of payment of dividends if exceeded | 10.00% | |||||
Maximum amount of dividends available to be paid by insurance subsidiaries to parent without prior approval of regulatory authorities | 290 | $ 290 | ||||
Maximum amount of dividends available to be received by parent from insurance subsidiaries without prior approval of regulatory authorities | 34 | 34 | ||||
Ceded annuity receipts | 482 | 246 | 492 | 0 | 0 | |
Ceded annuity surrenders, benefits and withdrawals | $ 514 | 0 | 206 | 0 | 0 | |
Aggregate guaranteed minimum death benefit value on variable annuity polices in force | 11 | 11 | 13 | |||
Life insurance | ||||||
Insurance [Line Items] | ||||||
Life insurance in force, ceded premiums | 5,420 | 5,420 | 6,230 | |||
Life insurance in force, direct premiums | $ 8,330 | 8,330 | 9,530 | |||
Life written premiums ceded | 19 | 20 | 22 | |||
Reinsurance recoveries | 28 | 32 | 41 | |||
Great American Life Insurance Company | ||||||
Insurance [Line Items] | ||||||
Proceeds advanced from Federal Home Loan Bank | 200 | |||||
Payments for FHLBank Advance, Investing Activities | $ 165 | |||||
Repayments of advances from Federal Home Loan Bank due in year five | $ 200 | |||||
Quota share coinsurance percentage | 50 | |||||
Inforce annuity business ceded, as a percent of total inforce | 15.00% | |||||
Deferred loss on ceded reserves | $ 180 | |||||
Amortization of deferred loss on reinsurance | 11 | |||||
Ceded annuity receipts | $ 492 | |||||
Ceded annuity surrenders, benefits and withdrawals | 206 | |||||
Commission and expense allowances | 39 | |||||
Reduction of annuity benefits | 46 | |||||
Great American Life Insurance Company | Life insurance | ||||||
Insurance [Line Items] | ||||||
Increases in statutory surplus from reinsurance treaty | $ 139 | 124 | ||||
Great American Life Insurance Company | Block Reinsurance | ||||||
Insurance [Line Items] | ||||||
Ceded inforce annuity business | $ 5,960 | |||||
Minimum | Great American Life Insurance Company | ||||||
Insurance [Line Items] | ||||||
Interest rates on Federal Home Loan Bank advances | 0.30% | |||||
Expected life of ceded reserves | 7 years | |||||
Average | Great American Life Insurance Company | ||||||
Insurance [Line Items] | ||||||
Interest rates on Federal Home Loan Bank advances | 0.53% | 0.83% | 0.53% | |||
Maximum [Member] | Variable annuities | ||||||
Insurance [Line Items] | ||||||
Liabilities for Guarantees on Long-Duration Contracts, Payment for Benefits | $ 1 | 1 | 1 | |||
Maximum [Member] | Great American Life Insurance Company | ||||||
Insurance [Line Items] | ||||||
Interest rates on Federal Home Loan Bank advances | 1.35% | |||||
Expected life of ceded reserves | 10 years | |||||
Retained Earnings | ||||||
Insurance [Line Items] | ||||||
Dividends | $ 300 | $ 285 | 140 | $ 60 | ||
Federal Home Loan Banks, advances, refinanced terms | ||||||
Insurance [Line Items] | ||||||
Advances from Federal Home Loan Bank | $ 610 |
Insurance - Net earnings and ca
Insurance - Net earnings and capital and surplus on a statutory basis for the insurance subsidiaries (Details) - GALIC consolidated life insurance companies - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statutory information | |||
Net Earnings | $ 209 | $ 34 | $ 802 |
Capital and Surplus | $ 2,897 | $ 2,868 |
Insurance - Recoverables from r
Insurance - Recoverables from reinsurance, progression of allowance for expected credit losses (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Reinsurance Recoverable, Allowance for Credit Loss [Roll Forward] | |
Beginning balance | $ 0 |
Impact of adoption of new accounting policy | 5 |
Provision for expected credit losses | 2 |
Ending balance | $ 7 |
Insurance - Liabilities for exc
Insurance - Liabilities for excess benefits expected to be paid on future deaths and annuitizations, guaranteed withdrawal benefits and accrued persistency and premium bonuses (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Insurance [Abstract] | ||
Expected death and annuitization | $ 260 | $ 232 |
Guaranteed withdrawal benefits | 817 | 625 |
Accrued persistency and premium bonuses | $ 0 | $ 1 |
Additional Information - Narrat
Additional Information - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Additional Information [Abstract] | |||
General and administrative costs paid to parent | $ 45 | $ 44 | $ 43 |
Commitments to fund limited partnerships | 493 | ||
Retirement and employee savings plan expense | $ 2 | $ 1 | $ 2 |
Supplementary Insurance Infor_2
Supplementary Insurance Information - Table (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred policy acquisition costs | $ 302 | $ 713 | $ 1,381 |
Reserves for future policy benefits and claims | 43,183 | 41,018 | 37,251 |
Net earned premiums | 22 | 22 | 24 |
Net investment income | 1,717 | 1,813 | 1,657 |
Benefits, claims, losses and settlement expenses | 1,232 | 1,187 | 1,035 |
Amortization of deferred policy acquisition costs | 249 | 202 | 215 |
Other operating expenses | 198 | 195 | 185 |
Annuity | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred policy acquisition costs | 286 | 694 | 1,358 |
Reserves for future policy benefits and claims | 42,573 | 40,406 | 36,616 |
Net earned premiums | 0 | 0 | 0 |
Net investment income | 1,700 | 1,792 | 1,638 |
Benefits, claims, losses and settlement expenses | 1,192 | 1,151 | 998 |
Amortization of deferred policy acquisition costs | 246 | 198 | 211 |
Other operating expenses | 188 | 188 | 174 |
Run-off Life | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred policy acquisition costs | 16 | 19 | 23 |
Reserves for future policy benefits and claims | 610 | 612 | 635 |
Net earned premiums | 22 | 22 | 24 |
Net investment income | 17 | 21 | 19 |
Benefits, claims, losses and settlement expenses | 40 | 36 | 37 |
Amortization of deferred policy acquisition costs | 3 | 4 | 4 |
Other operating expenses | $ 10 | $ 7 | $ 11 |