Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | May 04, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2,018 | |
Entity Registrant Name | LINCOLN NATIONAL LIFE INSURANCE CO /IN/ | |
Entity Central Index Key | 726,865 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 10,000,000 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Available-for-sale securities, at fair value: | ||
Fixed maturity securities (amortized cost: 2018 – $86,086; 2017 – $85,802) | $ 90,709 | $ 93,340 |
Equity securities (cost: 2017 – $247) | 246 | |
Trading securities | 1,468 | 1,533 |
Equity securities | 112 | |
Mortgage loans on real estate | 10,954 | 10,662 |
Real estate | 11 | 11 |
Policy loans | 2,369 | 2,379 |
Derivative investments | 725 | 845 |
Other investments | 1,807 | 2,006 |
Total investments | 108,155 | 111,022 |
Cash and invested cash | 1,239 | 947 |
Deferred acquisition costs and value of business acquired | 9,296 | 8,408 |
Premiums and fees receivable | 479 | 394 |
Accrued investment income | 1,107 | 1,052 |
Reinsurance recoverables | 6,707 | 6,515 |
Reinsurance related embedded derivatives | 58 | |
Funds withheld reinsurance assets | 582 | 598 |
Goodwill | 1,368 | 1,368 |
Other assets | 7,382 | 7,349 |
Separate account assets | 142,761 | 144,219 |
Total assets | 279,134 | 281,872 |
Liabilities | ||
Future contract benefits | 22,116 | 22,063 |
Other contract holder funds | 79,998 | 79,481 |
Short-term debt | 39 | 10 |
Long-term debt | 2,363 | 2,374 |
Reinsurance related embedded derivatives | 51 | |
Funds withheld reinsurance liabilities | 4,588 | 4,348 |
Deferred gain on business sold through reinsurance | 39 | 41 |
Payables for collateral on investments | 4,172 | 4,354 |
Other liabilities | 5,821 | 6,486 |
Separate account liabilities | 142,761 | 144,219 |
Total liabilities | 261,897 | 263,427 |
Contingencies and Commitments (See Note 9) | ||
Stockholders' Equity | ||
Common stock – 10,000,000 shares authorized, issued and outstanding | 10,712 | 10,713 |
Retained earnings | 4,168 | 4,405 |
Accumulated other comprehensive income (loss) | 2,357 | 3,327 |
Total stockholders' equity | 17,237 | 18,445 |
Total liabilities and stockholders' equity | $ 279,134 | $ 281,872 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Available-for-sale securities, at fair value: | ||
Fixed maturity securities (amortized cost) | $ 86,086 | $ 85,802 |
Equity securities (cost) | $ 247 | |
Stockholders' Equity | ||
Common stock - shares authorized (in shares) | 10,000,000 | 10,000,000 |
Common stock - shares issued (in shares) | 10,000,000 | 10,000,000 |
Common stock - shares outstanding (in shares) | 10,000,000 | 10,000,000 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Revenues | ||
Insurance premiums | $ 709 | $ 735 |
Fee income | 1,391 | 1,291 |
Net investment income | 1,176 | 1,176 |
Realized gain (loss): | ||
Total other-than-temporary impairment losses on securities | (2) | (4) |
Portion of loss recognized in other comprehensive income | ||
Net other-than-temporary impairment losses on securities recognized in earnings | (2) | (4) |
Realized gain (loss), excluding other-than-temporary impairment losses on securities | 24 | (85) |
Total realized gain (loss) | 22 | (89) |
Amortization of deferred gain (loss) on business sold through reinsurance | (1) | 17 |
Other revenues | 107 | 99 |
Total revenues | 3,404 | 3,229 |
Expenses | ||
Interest credited | 645 | 639 |
Benefits | 1,219 | 1,237 |
Commissions and other expenses | 1,010 | 964 |
Interest and debt expense | 32 | 32 |
Strategic digitization expense | 15 | 9 |
Total expenses | 2,921 | 2,881 |
Income (loss) before taxes | 483 | 348 |
Federal income tax expense (benefit) | 76 | (1) |
Net income (loss) | 407 | 349 |
Other comprehensive income (loss), net of tax | (1,614) | 252 |
Comprehensive income (loss) | $ (1,207) | $ 601 |
Consolidated Statements Of Stoc
Consolidated Statements Of Stockholders' Equity - USD ($) $ in Millions | Common Stock [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total |
Balance as of beginning-of-year at Dec. 31, 2016 | $ 10,696 | $ 3,342 | $ 1,782 | |
Stock compensation/issued for benefit plans | (4) | |||
Net income (loss) | 349 | $ 349 | ||
Dividends declared | (210) | |||
Other comprehensive income (loss), net of tax | 252 | 252 | ||
Balance as of end-of-period at Mar. 31, 2017 | 10,692 | 3,481 | 2,034 | 16,207 |
Cumulative effect from adoption of new accounting standards | (644) | 644 | ||
Balance as of beginning-of-year at Dec. 31, 2017 | 10,713 | 4,405 | 3,327 | 18,445 |
Stock compensation/issued for benefit plans | (1) | |||
Net income (loss) | 407 | 407 | ||
Other comprehensive income (loss), net of tax | (1,614) | (1,614) | ||
Balance as of end-of-period at Mar. 31, 2018 | $ 10,712 | $ 4,168 | $ 2,357 | $ 17,237 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Cash Flows from Operating Activities | ||
Net income (loss) | $ 407 | $ 349 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Deferred acquisition costs, value of business acquired, deferred sales inducements and deferred front-end loads deferrals and interest, net of amortization | (5) | 4 |
Trading securities purchases, sales and maturities, net | 38 | 23 |
Change in premiums and fees receivable | (85) | (36) |
Change in accrued investment income | (43) | (54) |
Change in future contract benefits and other contract holder funds | 365 | (189) |
Change in reinsurance related assets and liabilities | (520) | 34 |
Change in federal income tax accruals | 76 | (1) |
Realized gain (loss) | (22) | 89 |
Amortization of deferred (gain) loss on business sold through reinsurance | 1 | (17) |
Change in cash management agreement | 128 | (33) |
Other | 30 | (53) |
Net cash provided by (used in) operating activities | 370 | 116 |
Cash Flows from Investing Activities | ||
Purchases of available-for-sale securities and equity securities | (2,005) | (3,014) |
Sales of available-for-sale securities and equity securities | 430 | 457 |
Maturities of available-for-sale securities | 1,353 | 1,279 |
Purchases of alternative investments | (63) | (53) |
Sales and repayments of alternative investments | 31 | 53 |
Proceeds from affiliate transfer of alternative investments | 64 | |
Issuance of mortgage loans on real estate | (546) | (331) |
Repayment and maturities of mortgage loans on real estate | 253 | 217 |
Issuance and repayment of policy loans, net | 11 | 18 |
Net change in collateral on investments, derivatives and related settlements | (108) | (15) |
Other | (33) | (25) |
Net cash provided by (used in) investing activities | (677) | (1,350) |
Cash Flows from Financing Activities | ||
Issuance (payment) of short-term debt | 29 | 18 |
Deposits of fixed account values, including the fixed portion of variable | 2,759 | 2,707 |
Withdrawals of fixed account values, including the fixed portion of variable | (1,486) | (1,506) |
Transfers to and from separate accounts, net | (686) | (356) |
Common stock issued for benefit plans | (17) | (18) |
Dividends paid | (210) | |
Net cash provided by (used in) financing activities | 599 | 635 |
Net increase (decrease) in cash, invested cash and restricted cash | 292 | (599) |
Cash, invested cash and restricted cash as of beginning-of-year | 947 | 2,057 |
Cash, invested cash and restricted cash as of end-of-period | $ 1,239 | $ 1,458 |
Nature of Operations and Basis
Nature of Operations and Basis of Presentation | 3 Months Ended |
Mar. 31, 2018 | |
Nature of Operations and Basis of Presentation [Abstract] | |
Nature of Operations and Basis of Presentation | THE LINCOLN NATIONAL LIFE INSURANCE COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 1 . Nature of Operations and Basis of Presentation Nature of Operations The Lincoln National Life Insurance Company (“LNL” or the “Company,” which also may be referred to as “we,” “our” or “us”), a wholly-owned subsidiary of Lincoln National Corporation (“LNC” or the “Parent Company”), is domiciled in the state of Indiana. We own 100% of the outstanding common stock of Lincoln Life & Annuity Company of New York (“LLANY”), our insurance company subsidiary. We also own several non-insurance companies, including Lincoln Financial Distributors and Lincoln Financial Advisors, LNC’s wholesaling and retailing business units, respectively. Through our business segments, we sell a wide range of wealth protection, accumulation and retirement income products and solutions. These products primarily include fixed and indexed annuities, variable annuities, universal life insurance (“UL”), variable universal life insurance (“VUL”), linked-benefit UL, indexed universal life insurance (“IUL”), term life insurance, employer-sponsored retirement plans and services, and group life, disability and dental. LNL is licensed and sells its products throughout the U.S. and several U.S. territories. See Note 13 for additional information. Basis of Presentation The accompanying unaudited consolidated financial statements are prepared in accordance with United States of America generally accepted accounting principles (“GAAP”) for interim financial information and wit h the ins tructions for the Securities and Exchange Commission (“SEC”) Quarterly Report on Form 10-Q, including Article 10 of Regulation S-X . Acco rdingly, they do not include all of the information and notes required by GAAP for complete financial statements. Therefore, the information contained in the Notes to Consolidated Financial Statements included in the Company’s Form 10-K for the year ended December 31, 2017 (“2017 Form 10-K”) , should be read in connection with the reading of these interim unaudited c onsolidated financial statements. Certain GAAP policies, which significantly affect the determination of financial condition, results of operations and cash flows, are summarized in our 2017 Form 10-K. In the opinion of management, these statements include all normal recurring adjustments necessary for a fair presentation of the Company’s results. Operating results for the three months ended March 31, 2018 , are not necessarily indicative of the results that may be expected for the full year ending December 31, 2018 . All material inter-company accounts and transactions have been eliminated in consolidation. |
New Accounting Standards
New Accounting Standards | 3 Months Ended |
Mar. 31, 2018 | |
New Accounting Standards [Abstract] | |
New Accounting Standards | 2 . New Accounting Standards Adoption of New Accounting Standards The following table provides a description of our adoption of ne w Accounting Standards Updates (“ ASUs ”) issued by the Financial Accounting Standards Board and the impact of the adoption on our f inancial statements. ASUs not listed below were assessed and determined to be either not applicable or not material in presentation or amount. Standard Description Date of Adoption Effect on Financial Statements or Other Significant Matters ASU 2014-09, Revenue from Contracts with Customers and all related amendments This standard establishes the core principle of recognizing revenue to depict the transfer of promised goods and services and defines a five-step process that systematically identifies the various components of the revenue recognition process, culminating with the recognition of revenue upon satisfaction of an entity’s performance obligation. Although the standard and all related amendments supersede nearly all existing revenue recognition guidance under GAAP, the guidance does not amend the accounting for insurance and investment contracts recognized in accordance with Accounting Standards Codification ™ ("ASC") Topic 944, Financial Services – Insurance, leases, financial instruments and guarantees. January 1, 2018 We adopted the standard and all related amendments using the modified retrospective method. Our primary sources of revenue are recognized in accordance with ASC Topic 944, Financial Services – Insurance; as such, revenue within the scope of the new standard primarily includes commissions and advisory fees earned by our broker dealer operation. The adoption did not have a material impact on our consolidated financial condition, results of operations, stockholder's equity or cash flows. There were no material changes in the timing or measurement of revenues based upon the guidance. As a result, there is no cumulative effect on retained earnings. For more information, see Note 13. Standard Description Date of Adoption Effect on Financial Statements or Other Significant Matters ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities These amendments require, among other things, the fair value measurement of investments in equity securities and certain other ownership interests that do not result in consolidation and are not accounted for under the equity method of accounting. The change in fair value of the impacted investments in equity securities must be recognized in net income in the period of the change in fair value. In addition, the amendments include certain enhancements to the presentation and disclosure requirements for financial assets and financial liabilities. The guidance does not apply to Federal Home Loan Bank (“FHLB”) Stock. Early adoption of the ASU is generally not permitted, except as defined in the ASU. The amendments were adopted in the financial statements through a cumulative-effect adjustment to the beginning balance of retained earnings in the period of adoption. January 1, 2018 At the time of adoption, we had equity securities classified as available-for-sale (“AFS”) with a total carrying value of $246 million. We classified, prospectively, $110 million of equity securities within the scope of this ASU in a separate line on our Consolidated Balance Sheets. The remaining securities, consisting of $136 million of FHLB stock, are classified in other investments on our Consolidated Balance Sheet and carried at cost. The cumulative-effect adjustment of adopting this ASU did not have a material impact on our consolidated financial condition or results of operations. ASU 2018-02, Reclassification of Certain Tax Effects From Accumulated Other Comprehensive Income These amendments require a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects associated with the change in the federal corporate income tax rate in the Tax Cuts and Jobs Act (“Tax Act”) of 2017. The amount of the reclassification is equal to the impact of the change in deferred taxes related to amounts recorded in accumulated other comprehensive income (loss) (“AOCI”) resulting from the change in the statutory corporate tax rate from 35% to 21% . Early adoption is permitted and retrospective application is required. January 1, 2018 We retrospectively reclassified $644 million of stranded tax effects from AOCI to retained earnings in the period of adoption. Future Adoption of New Accounting Standards The following table provides a description of future adoptions of new accounting standards that may have an impact on our financial statements when adopted: Standard Description Projected Date of Adoption Effect on Financial Statements or Other Significant Matters ASU 2016-02, Leases This standard establishes a new accounting model for leases. Lessees will recognize most leases on the balance sheet as a right-of-use asset and a related lease liability. The lease liability is measured as the present value of the lease payments over the lease term with the right-of-use asset measured at the lease liability amount and including adjustments for certain lease incentives and initial direct costs. Lease expense recognition will continue to differentiate between finance leases and operating leases resulting in a similar pattern of lease expense recognition as under current GAAP. This ASU permits a modified retrospective adoption approach that includes a number of optional practical expedients that entities may elect upon adoption. Early adoption is permitted. January 1, 2019 We continue to gather information to determine our leases that are within the scope of this standard. We do not expect there to be a significant difference in our pattern of lease expense recognition under this ASU. Standard Description Projected Date of Adoption Effect on Financial Statements or Other Significant Matters ASU 2016-13, Measurement of Credit Losses on Financial Instruments These amendments adopt a new model to measure and recognize credit losses for most financial assets. The method used to measure estimated credit losses for AFS debt securities will be unchanged from current GAAP; however, the amendments require credit losses to be recognized through an allowance rather than as a reduction to the amortized cost of those debt securities. The amendments will permit entities to recognize improvements in credit loss estimates on AFS debt securities by reducing the allowance account immediately through earnings. The amendments will be adopted through a cumulative effect adjustment to the beginning balance of retained earnings as of the first reporting period in which the amendments are effective. Early adoption is permitted for annual periods beginning after December 15, 2018, and interim periods therein. January 1, 2020 We are currently evaluating the impact of adopting this ASU on our consolidated financial condition and results of operations, with a primary focus on our fixed maturity securities, mortgage loans and reinsurance recoverables. ASU 2017-08, Premium Amortization on Purchased Callable Debt Securities These amendments require an entity to shorten the amortization period for certain callable debt securities held at a premium so that the premium is amortized to the earliest call date. Early adoption is permitted, and the ASU requires adoption under a modified retrospective basis through a cumulative-effect adjustment to the beginning balance of retained earnings. January 1, 2019 We are currently evaluating the impact of adopting this ASU on our consolidated financial condition and results of operations. ASU 2017-12, Targeted Improvements to Accounting for Hedging Activities These amendments change both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. These amendments retain the threshold of highly effective for hedging relationships, remove the requirement to bifurcate between the portions of the hedging relationship that are effective and ineffective, record hedge item and hedging instrument results in the same financial statement line item, require quantitative assessment initially for all hedging relationships unless the hedging relationship meets the definition of either the shortcut method or critical terms match method and allow the contractual specified index rate to be designated as the hedged risk in a cash flow hedge of interest rate risk of a variable rate financial instrument. These amendments also eliminate the benchmark interest rate concept for variable rate instruments. Early adoption is permitted. January 1, 2019 We are currently evaluating the impact of adopting this ASU on our consolidated financial condition and results of operations. |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 31, 2018 | |
Acquisitions [Abstract] | |
Acquisitions | 3. Acquisition As previously announced, on May 1, 2018, LNL and LNC completed the previously disclosed acquisition of all of the issued and outstanding capital stock of Liberty Life Assurance Company of Boston (“Liberty Life”), which operated Liberty’s group benefits business (the “Liberty Group Business”) and individual life and individual and group annuity business (the “Liberty Life Business”). The acquisition was completed pursuant to a Master Transaction Agreement (the “Master Transaction Agreement”) with Liberty Mutual Insurance Company (“LMIC”), Liberty Mutual Fire Insurance Company (together with LMIC, “Sellers”), for the limited purposes set forth therein, Liberty Mutual Group Inc. (“Liberty”), Protective Life Insurance Company (“Reinsurer”), and for the limited purposes set forth therein, Protective Life Corporation, which Master Transaction Agreement was attached as Exhibit 2.1 to the Company’s Current Report on Form 8-K filed on January 23, 2018. Additionally, pursuant to the Master Transaction Agreement, Liberty Life entered into reinsurance agreements (the “Reinsurance Agreements”) and related ancillary documents with each of Reinsurer and Protective Life and Annuity Insurance Company (together with Reinsurer, “Reinsurers”) at the closing of the transaction. On the terms and subject to the conditions of the Reinsurance Agreements, Liberty Life ceded to Reinsurers, effective as of May 1, certain insurance policies relating to the Liberty Life Business. To support their obligations under the Reinsurance Agreements, Reinsurers have established trust accounts for the benefit of LNL. |
Variable Interest Entities
Variable Interest Entities | 3 Months Ended |
Mar. 31, 2018 | |
Variable Interest Entities [Abstract] | |
Variable Interest Entities | 4. V ariable I nterest E ntitie s Consolidated VIEs See Note 4 in our 2017 Form 10-K for a detailed discussion of our consolidated variable interest entities (“VIEs”), which information is incorporated herein by reference. Unconsolidated VIEs See Note 4 in our 2017 Form 10-K for a detailed discussion of our unconsolidated VIEs, which information is incorporated herein by reference. Limited Partnerships and Limited Liability Companies We invest in certain limited partnerships (“ LPs ”) an d limited liability companies (“ LLCs ”) , including qualified affordable housing projects, that we have concluded are VIEs. We do not hold any substantive kick-out or participation rights in the LPs and LLCs, and we do not receive any performance fees or decision maker fees from the LPs and LLCs. Based on our analysis of the LPs and LLCs, we are not the primary beneficiary of the VIEs as we do not have the power to direct the most significant activities of the LPs and LLCs. The carrying amounts of our investments in the LPs and LLCs are recognized in other investments on our Consolidated Balance Sheets and were $1.5 billion and $1.4 billion as of March 3 1 , 201 8 and December 31, 201 7 , respectively. Included in these carrying amounts are our investments in qualified affordable housing projects, which were $29 million and $31 million as of March 3 1 , 201 8, and December 31, 201 7 , respectively. We do not have any contingent commitments to provide additional capital funding to these qualified affordable housing projects. We received returns from these qualified affordable housing projects in the form of income tax credits and other tax benefits of less than $1 million for the three months ended March 31, 2018 and 2017, which were recognized in federal income tax expense (benefit) on our Consolidated Statements of Comprehensive Income (Loss). Our exposure to loss is limited to the capital we invest in the LPs and LLCs, and there have been no indicators of impairment that would require us to recognize an impairment loss related to the LPs and LLCs as of March 31 , 201 8 . |
Investments
Investments | 3 Months Ended |
Mar. 31, 2018 | |
Investments [Abstract] | |
Investments | 5 . Investments AFS Securities See Note 1 in our 2017 Form 10-K for information regarding our accounting policy relating to AFS securities, which also includes additional disclosures regarding our fair value measurements. In addition, we adopted ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities, in 2018 that resulted in a new classification and measurement of our equity securities. See Note 2 for additional information. The amortized cost, gross unrealized gains, losses and other-than-temporary impairment (“OTTI”) and fair value of AFS securities (in millions) were as follows: As of March 31, 2018 Amortized Gross Unrealized Fair Cost Gains Losses OTTI (1) Value Fixed maturity AFS securities: Corporate bonds $ 75,264 $ 4,465 $ 898 $ (8 ) $ 78,839 Asset-backed securities ("ABS") 847 46 7 (15 ) 901 U.S. government bonds 343 28 2 - 369 Foreign government bonds 390 45 - - 435 Residential mortgage-backed securities ("RMBS") 3,090 127 65 (21 ) 3,173 Commercial mortgage-backed securities ("CMBS") 668 5 14 (3 ) 662 Collateralized loan obligations ("CLOs") 872 1 3 (5 ) 875 State and municipal bonds 4,051 803 10 - 4,844 Hybrid and redeemable preferred securities 561 70 20 - 611 Total AFS securities $ 86,086 $ 5,590 $ 1,019 $ (52 ) $ 90,709 As of December 31, 2017 Amortized Gross Unrealized Fair Cost Gains Losses OTTI (1) Value Fixed maturity AFS securities: Corporate bonds $ 74,921 $ 6,573 $ 341 $ (7 ) $ 81,160 ABS 882 51 6 (26 ) 953 U.S. government bonds 497 37 1 - 533 Foreign government bonds 391 55 - - 446 RMBS 3,125 148 36 (21 ) 3,258 CMBS 589 10 2 (2 ) 599 CLOs 803 2 2 (5 ) 808 State and municipal bonds 4,033 932 6 - 4,959 Hybrid and redeemable preferred securities 561 85 22 - 624 Total fixed maturity securities 85,802 7,893 416 (61 ) 93,340 Equity AFS securities 247 16 17 - 246 Total AFS securities $ 86,049 $ 7,909 $ 433 $ (61 ) $ 93,586 (1) Includes unrealized (gains) and losses on impaired securities related to changes in the fair value of such securities subsequent to the impairment measurement date. The amortized cost and fair value of fixed maturity AFS securities by contractual maturities (in millions) as of March 31, 2018 , were as follows: Amortized Fair Cost Value Due in one year or less $ 3,501 $ 3,535 Due after one year through five years 17,420 17,740 Due after five years through ten years 16,530 16,713 Due after ten years 43,158 47,110 Subtotal 80,609 85,098 Structured securities (ABS, MBS, CLOs) 5,477 5,611 Total fixed maturity AFS securities $ 86,086 $ 90,709 Actual maturities may differ from contractual maturities because issuers may have the right to call or pre-pay obligations. The fair value and gross unrealized losses, including the portion of OTTI recognized in other comprehensive income (loss) (“OCI”), of AFS securities (dollars in millions), aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, were as follows: As of March 31, 2018 Less Than or Equal Greater Than to Twelve Months Twelve Months Total Gross Gross Gross Unrealized Unrealized Unrealized Fair Losses and Fair Losses and Fair Losses and Value OTTI Value OTTI Value OTTI Fixed maturity AFS securities: Corporate bonds $ 19,380 $ 496 $ 4,371 $ 405 $ 23,751 $ 901 ABS 101 2 134 13 235 15 U.S. government bonds 100 1 18 1 118 2 RMBS 638 17 566 48 1,204 65 CMBS 450 10 59 4 509 14 CLOs 547 3 75 - 622 3 State and municipal bonds 94 2 95 8 189 10 Hybrid and redeemable preferred securities 36 1 123 19 159 20 Total AFS securities $ 21,346 $ 532 $ 5,441 $ 498 $ 26,787 $ 1,030 Total number of AFS securities in an unrealized loss position 2,156 As of December 31, 2017 Less Than or Equal Greater Than to Twelve Months Twelve Months Total Gross Gross Gross Unrealized Unrealized Unrealized Fair Losses and Fair Losses and Fair Losses and Value OTTI Value OTTI Value OTTI Fixed maturity AFS securities: Corporate bonds $ 4,726 $ 67 $ 4,706 $ 276 $ 9,432 $ 343 ABS 56 - 143 15 199 15 U.S. government bonds 156 - 19 1 175 1 RMBS 277 4 599 33 876 37 CMBS 113 - 60 3 173 3 CLOs 281 2 72 - 353 2 State and municipal bonds 33 - 89 5 122 5 Hybrid and redeemable preferred securities 20 - 124 22 144 22 Total fixed maturity securities 5,662 73 5,812 355 11,474 428 Equity AFS securities 22 14 8 3 30 17 Total AFS securities $ 5,684 $ 87 $ 5,820 $ 358 $ 11,504 $ 445 Total number of AFS securities in an unrealized loss position 1,095 The fair value, gross unrealized losses, the portion of OTTI recognized in OCI (in millions) and number of AFS securities where the fair value had declined and remained below amortized cost by greater than 20% were as follows: As of March 31, 2018 Number Fair Gross Unrealized of Value Losses OTTI Securities (1) Less than six months $ 102 $ 33 $ 2 18 Six months or greater, but less than nine months 17 8 - 4 Nine months or greater, but less than twelve months - - - 3 Twelve months or greater 174 60 8 30 Total $ 293 $ 101 $ 10 55 As of December 31, 2017 Number Fair Gross Unrealized of Value Losses OTTI Securities (1) Less than six months $ 156 $ 57 $ 1 26 Six months or greater, but less than nine months 2 1 - 4 Nine months or greater, but less than twelve months 12 6 - 7 Twelve months or greater 209 77 10 49 Total $ 379 $ 141 $ 11 86 (1) We may reflect a security in more than one aging category based on various purchase dates. We regularly review our investment holdings for OTTI. Our gross unrealized losses, including the portion of OTTI recognized in OCI, on fixed maturity AFS securities increased by $602 million for the three months ended March 31, 2018 . As discussed further below, we believe the unrealized loss position as of March 31, 2018 , did not represent OTTI as (i) we did not intend to sell these fixed maturity AFS securities; (ii) it is not more likely than not that we will be required to sell these fixed maturity AFS securities before recovery of their amortized cost basis; and (iii) the estimated future cash flows were equal to or greater than the amortized cost basis of the debt securities. Based upon this evaluation as of March 31, 2018 , management believes we have the ability to generate adequate amounts of cash from our normal operations (e.g., insurance premiums and fees and investment income) to meet cash requirements with a prudent margin of safety without requiring the sale of our temporarily-impaired securities. As of March 31, 2018 , the unrealized losses associated with our corporate bond securities were attributable primarily to widening credit spreads and rising interest rates since purchase. We performed a detailed analysis of the financial performance of the underlying issuers and determined that we expected to recover the entire amortized cost for each temporarily-impaired security. As of March 31, 2018 , the unrealized losses associated with our mortgage-backed securities (“MBS”) and ABS were attributable primarily to widening credit spreads and rising interest rates since purchase. We assessed for credit impairment using a cash flow model that incorporates key assumptions including default rates, severities and prepayment rates. We estimated losses for a security by forecasting the underlying loans in each transaction. The forecasted loan performance was used to project cash flows to the various tranches in the structure, as applicable. Our forecasted cash flows also considered, as applicable, independent industry analyst reports and forecasts and other independent market data. Based upon our assessment of the expected credit losses of the security given the performance of the underlying collateral compared to our subordination or other credit enhancement, we expected to recover the entire amortized cost of each temporarily-impaired security. As of March 31, 2018 , the unrealized losses associated with our hybrid and redeemable preferred securities were attributable primarily to wider credit spreads caused by illiquidity in the market and subordination within the capital structure, as well as credit risk of underlying issuers. For our hybrid and redeemable preferred securities, we evaluated the financial performance of the underlying issuers based upon credit performance and investment ratings and determined that we expected to recover the entire amortized cost of each temporarily-impaired security. Changes in the amount of credit loss of OTTI recognized in net income (loss) where the portion related to other factors was recognized in OCI (in millions) on fixed maturity AFS securities were as follows: For the Three Months Ended March 31, 2018 2017 Balance as of beginning-of-year $ 358 $ 411 Increases attributable to: Credit losses on securities for which an OTTI was not previously recognized 2 1 Credit losses on securities for which an OTTI was previously recognized - 3 Decreases attributable to: Securities sold, paid down or matured (1 ) (41 ) Balance as of end-of-period $ 359 $ 374 During the three months ended March 31, 2018 and 2017 , we recorded credit losses on securities for which an OTTI was not previously recognized as we determined the cash flows expected to be collected would not be sufficient to recover the entire amortized cost basis of the debt security. The credit losses we recorded on securities for which an OTTI was not previously recognized were attributable primarily to one or a combination of the following reasons: · Failure of the issuer of the security to make scheduled payments; · Deterioration of creditworthiness of the issuer; · Deterioration of conditions specifically related to the security; · Deterioration of fundamentals of the industry in which the issuer operates; and · Deterioration of the rating of the security by a rating agency. We recognize the OTTI attributed to the noncredit portion as a separate component in OCI referred to as unrealized OTTI on fixed maturity AFS securities. Mortgage Loans on Real Estate See Note 1 in our 2017 Form 10-K for information regarding our accounting policy relating to mortgage loans on real estate. Mortgage loans on real estate principally involve commercial real estate. The commercial loans are geographically diversified throughout the U.S. with the largest concentrations in California, which accounted for 20% and 21% of mortgage loans on real estate as of March 31, 2018, and December 31, 2017 , respectively, and Texas which accounted for 12% of mortgage loans on real estate as of March 31, 2018, and December 31, 2017. The following provides the current and past due composition of our mortgage loans on real estate (in millions): As of As of March 31, December 31, 2018 2017 Current $ 10,954 $ 10,662 60 to 90 days past due - - Greater than 90 days past due 3 3 Valuation allowance associated with impaired mortgage loans on real estate (3 ) (3 ) Unamortized premium (discount) - - Total carrying value $ 10,954 $ 10,662 The number of impaired mortgage loans on real estate, each of which had an associated specific valuation allowance, and the carrying value of impaired mortgage loans on real estate (dollars in millions) were as follows: As of As of March 31, December 31, 2018 2017 Number of impaired mortgage loans on real estate 3 3 Principal balance of impaired mortgage loans on real estate $ 11 $ 11 Valuation allowance associated with impaired mortgage loans on real estate (3 ) (3 ) Carrying value of impaired mortgage loans on real estate $ 8 $ 8 The changes in the valuation allowance associated with impaired mortgage loans on real estate (in millions) were as follows: For the Three Months Ended March 31, 2018 2017 Balance as of beginning-of-year $ 3 $ 2 Additions - - Charge-offs, net of recoveries - - Balance as of end-of-period $ 3 $ 2 Additional information related to impaired mortgage loans on real estate (in millions) was as follows: For the Three Months Ended March 31, 2018 2017 Average carrying value for impaired mortgage loans on real estate $ 8 $ 5 Interest income recognized on impaired mortgage loans on real estate - - Interest income collected on impaired mortgage loans on real estate - - As described in Note 1 in our 2017 Form 10-K, we use the loan-to-value and debt-service coverage ratios as credit quality indicators for our mortgage loans on real estate, which were as follows (dollars in millions): As of March 31, 2018 As of December 31, 2017 Debt- Debt- Service Service Carrying % of Coverage Carrying % of Coverage Loan-to-Value Ratio Value Total Ratio Value Total Ratio Less than 65% $ 9,865 90.0% 2.27 $ 9,563 89.7% 2.27 65% to 74% 995 9.1% 1.93 1,000 9.4% 1.94 75% to 100% 86 0.8% 0.98 91 0.8% 0.97 Greater than 100% 8 0.1% 0.82 8 0.1% 0.82 Total mortgage loans on real estate $ 10,954 100.0% $ 10,662 100.0% Alternative Investments As of March 31, 2018 , and December 31, 2017 , alternative investments included investments in 225 and 221 different partnerships, respectively, and the portfolios represented approximately 1 % of our overall invested assets. Realized Gain (Loss) Related to Certain Investments The detail of the realized gain (loss) related to certain investments (in millions) was as follows: For the Three Months Ended March 31, 2018 2017 Fixed maturity AFS securities: (1) Gross gains $ 13 $ 8 Gross losses (32 ) (12 ) Equity AFS securities: Gross gains - 1 Gross losses - - Gain (loss) on other investments (2) (1 ) (4 ) Associated amortization of DAC, VOBA, DSI and DFEL and changes in other contract holder funds (5 ) (7 ) Total realized gain (loss) related to certain investments, pre-tax $ (25 ) $ (14 ) (1) These amounts are represented net of related fair value hedging activity. See Note 6 for more information. (2) Includes market adjustments on equity securities still held as of March 31, 2018 of less than $1 million. Details underlying write-downs taken as a result of OTTI (in millions) that were recognized in net income (loss) and included in realized gain (loss) on AFS securities above, and the portion of OTTI recognized in OCI (in millions) were as follows: For the Three Months Ended March 31, 2018 2017 OTTI Recognized in Net Income (Loss) Fixed maturity AFS securities: Corporate bonds $ (2 ) $ (2 ) ABS - (1 ) RMBS - (1 ) Gross OTTI recognized in net income (loss) (2 ) (4 ) Associated amortization of DAC, VOBA, DSI and DFEL - - Net OTTI recognized in net income (loss), pre-tax $ (2 ) $ (4 ) Portion of OTTI Recognized in OCI Gross OTTI recognized in OCI $ - $ - Change in DAC, VOBA, DSI and DFEL - - Net portion of OTTI recognized in OCI, pre-tax $ - $ - Determination of Credit Losses on Corporate Bonds and ABS As of March 31, 2018 , and December 31, 2017 , we reviewed our corporate bond and ABS portfolios for potential shortfall in contractual principal and interest based on numerous subjective and objective inputs. The factors used to determine the amount of credit loss for each individual security, include, but are not limited to, near term risk, substantial discrepancy between book and market value, sector or company-specific volatility, negative operating trends and trading levels wider than peers. Credit ratings express opinions about the credit quality of a security. Securities rated investment grade, that is those rated BBB- or higher by Standard & Poor’s (“S&P”) Rating Services or Baa3 or higher by Moody’s Investors Service (“Moody’s”), are generally considered by the rating agencies and market participants to be low credit risk. As of March 31, 2018 , and December 31, 2017 , 96% of the fair value of our corporate bond portfolio was rated investment grade. As of March 31, 2018 , and December 31, 2017 , the portion of our corporate bond portfolio rated below investment grade had an amortized cost of $ 3.3 billion and $3.4 billion, respectively, and a fair value of $ 3.2 billion and $ 3.4 billion, respectively. As of March 31, 2018 , and December 31, 2017, 98% of the fair value of our ABS portfolio was rated investment grade. As of March 31, 2018 , and December 31, 2017 , the portion of our ABS portfolio rated below investment grade had an amortized cost of $ 43 million and a fair value of $ 41 m illion. Based upon the analysis discussed above, we believe as of March 31, 2018 , and December 31, 2017 , that we would recover the amortized cost of each investment grade corporate bond and ABS security. Determination of Credit Losses on MBS As of March 31, 2018 , and December 31, 2017 , default rates were projected by considering underlying MBS loan performance and collateral type. Projected default rates on existing delinquencies vary between 10% to 100% depending on loan type and severity of delinquency status. In addition, we estimate the potential contributions of currently performing loans that may become delinquent in the future based on the change in delinquencies and loan liquidations experienced in the recent history. Finally, we develop a default rate timing curve by aggregating the defaults for all loans in the pool (delinquent loans, foreclosure and real estate owned and new delinquencies from currently performing loans) and the associated loan-level loss severities. We use certain available loan characteristics such as lien status, loan sizes and occupancy to estimate the loss severity of loans. Second lien loans are assigned 100% severity, if defaulted. For first lien loans, we assume a minimum of 30% severity with higher severity assumed for investor properties and further adjusted by housing price assumptions. With the default rate timing curve and loan-level loss severity, we derive the future expected credit losses. Payables for Collateral on Investments The carrying value of the payables for collateral on investments (in millions) included on our Consolidated Balance Sheets and the fair value of the related investments or collateral consisted of the following: As of March 31, 2018 As of December 31, 2017 Carrying Fair Carrying Fair Value Value Value Value Collateral payable for derivative investments (1) $ 587 $ 587 $ 701 $ 701 Securities pledged under securities lending agreements (2) 154 149 222 213 Securities pledged under repurchase agreements (3) 531 557 531 554 Investments pledged for Federal Home Loan Bank of Indianapolis (“FHLBI”) (4) 2,900 4,206 2,900 4,235 Total payables for collateral on investments $ 4,172 $ 5,499 $ 4,354 $ 5,703 (1) We obtain collateral based upon contractual provisions with our counterparties. These agreements take into consideration the counterparties’ credit rating as compared to ours, the fair value of the derivative investments and specified thresholds that if exceeded result in the receipt of cash that is typically invested in cash and invested cash. See Note 6 for additional information. (2) Our pledged securities under securities lending agreements are included in fixed maturity AFS securities on our Consolidated Balance Sheets. We generally obtain collateral in an amount equal to 102 % and 105 % of the fair value of the domestic and foreign securities, respectively. We value collateral daily and obtain additional collateral when deemed appropriate. The cash received in our securities lending program is typically invested in cash and invested cash or fixed maturity AFS securities. (3) Our pledged securities under repurchase agreements are included in fixed maturity AFS securities on our Consolidated Balance Sheets. We obtain collateral in an amount equal to 95 % of the fair value of the securities, and our agreements with third parties contain contractual provisions to allow for additional collateral to be obtained when necessary. The cash received in our repurchase program is typically invested in fixed maturity AFS securities. (4) Our pledged investments for FHLBI are included in fixed maturity AFS securities and mortgage loans on real estate on our Consolidated Balance Sheets. The collateral requirements are generally 105 % to 115 % of the fair value for fixed maturity AFS securities and 155 % to 175 % of the fair value for mortgage loans on real estate. The cash received in these transactions is primarily invested in cash and invested cash or fixed maturity AFS securities. Increase (decrease) in payables for collateral on investments (in millions) consisted of the following: For the Three Months Ended March 31, 2018 2017 Collateral payable for derivative investments $ (114 ) $ 36 Securities pledged under securities lending agreements (68 ) (90 ) Securities pledged under repurchase agreements - 1 Investments pledged for FHLBI - 150 Total increase (decrease) in payables for collateral on investments $ (182 ) $ 97 We have elected not to offset our repurchase agreements and securities lending transactions in our financial statements. The remaining contractual maturities of repurchase agreements and securities lending transactions accounted for as secured borrowings were as follows: As of March 31, 2018 Overnight and Continuous Up to 30 Days 30 – 90 Days Greater Than 90 Days Total Repurchase Agreements Corporate bonds $ - $ 100 $ 281 $ 150 $ 531 Total - 100 281 150 531 Securities Lending Corporate bonds 154 - - - 154 Total 154 - - - 154 Total gross secured borrowings $ 154 $ 100 $ 281 $ 150 $ 685 As of December 31, 2017 Overnight and Continuous Up to 30 Days 30 – 90 Days Greater Than 90 Days Total Repurchase Agreements Corporate bonds $ - $ 100 $ 281 $ 150 $ 531 Total - 100 281 150 531 Securities Lending Corporate bonds 222 - - - 222 Total 222 - - - 222 Total gross secured borrowings $ 222 $ 100 $ 281 $ 150 $ 753 We accept collateral in the form of securities in connection with repurchase agreements. In instances where we are permitted to sell or re-pledge the securities received, we report the fair value of the collateral received and a related obligation to return the collateral in the financial statements. In addition, we receive securities in connection with securities borrowing agreements, which we are permitted to sell or re-pledge. As of March 31, 2018 , the fair value of all collateral received that we are permitted to sell or re-pledge was $ 629 million. As of March 31, 2018, we have re-pledged $337 million of this collateral to cover initial margin on certain derivative investments. Investment Commitments As of March 31, 2018 , our investment commitments were $ 1.6 billion, which included $ 735 million of LPs, $ 582 million of mortgage loans on real estate and $ 280 million of private placement securities. Concentrations of Financial Instruments As of March 31, 2018 , and December 31, 2017 , our most significant investments in one issuer were our investments in securities issued by the Federal Home Loan Mortgage Corporation with a fair value of $ 1.4 billion and $1.2 billion, respectively , or 1% of our invested assets portfolio, and our investments in securities issued by the Federal National Mortgage Association with a fair value of $1.2 b illion and $930 million, respectively, or 1 % of our invested assets portfolio. These concentrations include fixed maturity AFS , trading and equity securities. As of March 31, 2018, our most significant investments in one industry were our investments in securities in the financial services industry and the consumer non-cyclical industry with a fair value of $14.8 billion and $13.6 billion, respectively, or 14% and 13% , respectively, of our invested assets portfolio . As of December 31, 2017, our most significant investments in one industry were our investments in securities in the consumer non-cyclical industry and the utilities industry with a fair o f $14.3 billion and $13.8 billion, respectively, or 13% and 12% , respectively, of our invested assets portfolio. These concentrations include fixed maturity AFS , trading and equity securities. |
Derivative Instruments
Derivative Instruments | 3 Months Ended |
Mar. 31, 2018 | |
Derivative Instruments [Abstract] | |
Derivative Instruments | 6 . Derivative Instruments We maintain an overall risk management strategy that incorporates the use of derivative instruments to minimize significant unplanned fluctuations in earnings that are caused by interest rate risk, foreign currency exchange risk, equity market risk, basis risk and credit risk. See Note 1 in our 2017 Form 10-K for a detailed discussion of the accounting treatment for derivative instruments. See Note 6 in our 2017 Form 10-K for a detailed discussion of our derivative instruments and use of them in our overall risk management strategy, which information is incorporated herein by reference. See Note 12 for additional disclosures related to the fair value of our derivative instruments . We have derivati ve instruments with off-balance- sheet risks whose notional or contract amounts exceed the related credit exposure. Outstanding derivati ve instruments with off-balance- sheet risks (in millions) were as follows: As of March 31, 2018 As of December 31, 2017 Notional Fair Value Notional Fair Value Amounts Asset Liability Amounts Asset Liability Qualifying Hedges Cash flow hedges: Interest rate contracts (1) $ 1,674 $ 21 $ 37 $ 1,544 $ 45 $ 16 Foreign currency contracts (1) 1,887 47 139 1,804 79 79 Total cash flow hedges 3,561 68 176 3,348 124 95 Fair value hedges: Interest rate contracts (1) 564 - 142 563 - 174 Non-Qualifying Hedges Interest rate contracts (1) 99,814 498 164 72,937 657 127 Foreign currency contracts (1) 114 - - 22 - - Equity market contracts (1) 30,416 656 374 30,918 562 557 Credit contracts (1) - - - 52 - - Embedded derivatives: Guaranteed living benefit ("GLB") direct (2) - 1,110 - - 903 - GLB ceded (2) (3) - 45 1,155 - 51 954 Reinsurance related (4) - 58 - - - 51 Indexed annuity and IUL contracts (2) (5) - 17 1,346 - 11 1,418 Total derivative instruments $ 134,469 $ 2,452 $ 3,357 $ 107,840 $ 2,308 $ 3,376 (1) Reported in derivative investments and other liabilities on our Consolidated Balance Sheets. (2) Reported in other assets on our Consolidated Balance Sheets. (3) Reported in other liabilities on our Consolidated Balance Sheets. (4) Reported in reinsurance related embedded derivatives on our Consolidated Balance Sheets. (5) Reported in future contract benefits on our Consolidated Balance Sheets. The maturity of the notional amounts of derivative instruments (in millions) was as follows: Remaining Life as of March 31, 2018 Less Than 1 – 5 6 – 10 11 – 30 Over 30 1 Year Years Years Years Years Total Interest rate contracts (1) $ 25,136 $ 13,592 $ 45,940 $ 17,384 $ - $ 102,052 Foreign currency contracts (2) 114 290 426 1,161 10 2,001 Equity market contracts 18,923 8,431 384 14 2,664 30,416 Total derivative instruments with notional amounts $ 44,173 $ 22,313 $ 46,750 $ 18,559 $ 2,674 $ 134,469 (1) As of March 31, 2018 , the latest maturity date for which we were hedging our exposure to the variability in future cash flows for these instruments was November 2019 . (2) As of March 31, 2018 , the latest maturity date for which we were hedging our exposure to the variability in future cash flows for these instruments was September 2049 . The change in our unrealized gain (loss) on derivativ e instruments in AOCI (in millions) was as follows: For the Three Months Ended March 31, 2018 2017 Unrealized Gain (Loss) on Derivative Instruments Balance as of beginning-of-year $ 27 $ 93 Other comprehensive income (loss): Unrealized holding gains (losses) arising during the period: Cumulative effect from adoption of new accounting standard 6 - Cash flow hedges: Interest rate contracts (46 ) (8 ) Foreign currency contracts (37 ) 11 Change in foreign currency exchange rate adjustment (50 ) (20 ) Change in DAC, VOBA, DSI and DFEL 4 (4 ) Income tax benefit (expense) 28 7 Less: Reclassification adjustment for gains (losses) included in net income (loss): Cash flow hedges: Interest rate contracts (1) 1 2 Foreign currency contracts (1) 5 4 Foreign currency contracts (2) - 5 Associated amortization of DAC, VOBA, DSI and DFEL (1 ) (2 ) Income tax benefit (expense) (1 ) (3 ) Balance as of end-of-period $ (72 ) $ 73 (1) The OCI offset is reported within net investment income on our Consolidated Statements of Comprehensive Income (Loss). (2) The OCI offset is reported within realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). The gains (losses) on derivative instruments (in millions) recorded within income (loss) from continuing operations on our Consolidated Statements of Comprehensive Income (Loss) were as follows: For the Three Months Ended March 31, 2018 2017 Qualifying Hedges Cash flow hedges: Interest rate contracts (1) $ 1 $ 2 Foreign currency contracts (1) 5 4 Foreign currency contracts (2) - 5 Total cash flow hedges 6 11 Fair value hedges: Interest rate contracts (1) (4 ) (7 ) Interest rate contracts (2) 33 8 Total fair value hedges 29 1 Non-Qualifying Hedges Interest rate contracts (2) (312 ) (50 ) Foreign currency contracts (2) 2 3 Equity market contracts (2) 7 (526 ) Equity market contracts (3) (2 ) 9 Embedded derivatives: Reinsurance related (2) 125 (21 ) Indexed annuity and IUL contracts (2) 52 (120 ) Total derivative instruments $ (93 ) $ (693 ) (1) Reported in net investment income on our Consolidated Statements of Comprehensive Income (Loss). (2) Reported in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). (3) Reported in commissions and other expenses on our Consolidated Statements of Comprehensive Income (Loss). Gains (losses) recognized as a component of OCI (in millions) on derivative instruments designated and qualifying as cash flow hedges were as follows: For the Three Months Ended March 31, 2018 2017 Offset to net investment income $ 6 $ 6 Offset to realized gain (loss) $ - $ 5 As of March 31, 2018 , $ 28 million of the deferred net gains ( losses ) on derivative instruments in A OCI were expected to be reclassified to earnings during the next 12 months. This reclassification would be due primarily to interest rate variances related to our interest rate swap agreements. For the three months ended March 31, 2018 and 2017 , there were no material reclassifications to earnings due to hedged firm commitments no longer deemed probable or due to hedged forecasted transactions that had not occurred by the end of the originally specified time period. As of March 31, 2018, we did not have any exposure related to credit default swaps for which we are the seller. As of December 31, 2017, i nformation related to our credit default swap s for which we are the seller (dollars in millions) was as follows: As of December 31, 2017 Credit Reason Nature Rating of Number Maximum for of Underlying of Fair Potential Credit Contract Type Maturity Entering Recourse Obligation (1) Instruments Value (2) Payout Basket credit default swaps 12/20/2022 (3) (4) BBB+ 1 $ 1 $ 52 1 $ 1 $ 52 (1) Represents average credit ratings based on the midpoint of the applicable ratings among Moody’s, S&P and Fitch Ratings, as scaled to the corresponding S&P ratings. (2) Broker quotes are used to determine the market value of our credit default swaps. (3) Credit default swaps were entered into in order to hedge the liability exposure on certain variable annuity products. (4) Sellers do not have the right to demand indemnification or compensation from third parties in case of a loss (payment) on the contract. Details underlying the associated collateral of our credit default sw aps for which we are the seller if credit risk - related contingent features were triggered (in millions) were as follows: As of As of March 31, December 31, 2018 2017 Maximum potential payout $ - $ 52 Less: Counterparty thresholds - - Maximum collateral potentially required to post $ - $ 52 Certain of our credit default swap agreements contain contractual provisions that allow for the netting of collateral with our counterparties related to all of our collateralized financing transactions that we have outstanding. If these netting agreements were not in place, we would have been required to post collateral if the market value was less than zero . Credit Risk We are exposed to credit losses in the event of non-performance by our counterparties on various derivative contracts and reflect assumptions regarding the credit or non-performance risk (“NPR”). The NPR is based upon assumptions for each counterparty’s credit spread over the estimated weighted average life of the counterparty exposure less collateral held. As of March 31, 2018 , the NPR adjustment was less than $ 1 million . The credit risk associated with such agreements is minimized by entering into agreements with financial institutions with long-standing, superior performance records. Additionally, we maintain a policy of requiring derivative contracts to be governed by an International Swaps and Derivatives Association (“ ISDA ”) Master Agreement. We are required to maintain minimum ratings as a matter of routine practice in negotiating ISDA agreements. Under some ISDA agreements, we and our insurance subsidiar y have agreed to maintain certain financial strength or claims-paying ratings. A downgrade below these levels could result in termination of derivative contracts, at which time any amounts payable by us would be dependent on the market value of the underlying derivative contracts. In certain transactions, we and the counterparty have entered into a credit support annex requiring either party to post collateral when net exposures exceed pre-determined thresholds. These thresholds vary by counterparty and credit rating. The amount of such exposure is essentially the net replacement cost or market value less collateral held for such agreements with each counterparty if the net market value is in our favor. As of March 31, 2018 and December 31, 2017, our exposure was zero . The amounts recognized (in mi llions) by S&P credit rating of counterparty, for which we had the right to reclaim cash collateral or were obligated to return cash collateral , were as follows: As of March 31, 2018 As of December 31, 2017 Collateral Collateral Collateral Collateral Posted by Posted by Posted by Posted by S&P Counter- LNL Counter- LNL Credit Party (Held by Party (Held by Rating of (Held by Counter- (Held by Counter- Counterparty LNL) Party) LNL) Party) AA- $ 79 $ (4 ) $ 116 $ (1 ) A+ 103 (104 ) 178 (453 ) A 185 (3 ) 170 (48 ) A- 219 - 237 - BBB+ - (11 ) - (4 ) $ 586 $ (122 ) $ 701 $ (506 ) Balance Sheet Offsetting Information related to the effects of offsetting (in millions) was as follows: As of March 31, 2018 Embedded Derivative Derivative Instruments Instruments Total Financial Assets Gross amount of recognized assets $ 976 $ 1,230 $ 2,206 Gross amounts offset (251 ) - (251 ) Net amount of assets 725 1,230 1,955 Gross amounts not offset: Cash collateral (586 ) - (586 ) Non-cash collateral (80 ) - (80 ) Net amount $ 59 $ 1,230 $ 1,289 Financial Liabilities Gross amount of recognized liabilities $ 728 $ 2,501 $ 3,229 Gross amounts offset (247 ) - (247 ) Net amount of liabilities 481 2,501 2,982 Gross amounts not offset: Cash collateral (122 ) - (122 ) Non-cash collateral (205 ) - (205 ) Net amount $ 154 $ 2,501 $ 2,655 As of December 31, 2017 Embedded Derivative Derivative Instruments Instruments Total Financial Assets Gross amount of recognized assets $ 1,082 $ 965 $ 2,047 Gross amounts offset (237 ) - (237 ) Net amount of assets 845 965 1,810 Gross amounts not offset: Cash collateral (701 ) - (701 ) Net amount $ 144 $ 965 $ 1,109 Financial Liabilities Gross amount of recognized liabilities $ 1,037 $ 2,423 $ 3,460 Gross amounts offset (261 ) - (261 ) Net amount of liabilities 776 2,423 3,199 Gross amounts not offset: Cash collateral (506 ) - (506 ) Net amount $ 270 $ 2,423 $ 2,693 |
Federal Income Taxes
Federal Income Taxes | 3 Months Ended |
Mar. 31, 2018 | |
Federal Income Taxes [Abstract] | |
Federal Income Taxes | 7 . Federal Income Taxes The effective tax rate is the ratio of tax expense over pre-tax income (loss). The effective tax rate was 16% and zero for the three months ended March 31, 2018 and 2017, respectively. The effective tax rate on pre-tax income was lower than the prevailing corporate federal income tax rate. Differences in the effective rates and the U.S. statutory rates of 21% and 35% for the three months ended March 31, 2018 and 2017, respectively, were the result of the separate account dividends-received deduction, certain tax preferred investment income, foreign tax credits and other tax preference items. The SEC previously issued rules that allow for a one year measurement period after the enactment of the Tax Act to finalize calculations and recording of the related tax impacts. Subsequent to the Tax Act, we have continued to review and analyze the provisions of the Tax Act, including the actual and potential impact of the reduction in the U.S. federal corporate income tax rate and the impact of specific life insurance provisions on our financial statements. While we do not anticipate any significant changes to amounts currently recorded, any additional adjustments to amounts recorded as a result of the Tax Act will be made during 2018 . |
Guaranteed Benefit Features
Guaranteed Benefit Features | 3 Months Ended |
Mar. 31, 2018 | |
Guaranteed Benefit Features [Abstract] | |
Guaranteed Benefit Features | 8. Guaranteed Benefit Features Information on the guaranteed death benefit (“GDB”) features outstanding (dollars in millions) was as follows: As of As of March 31, December 31, 2018 (1) 2017 (1) Return of Net Deposits Total account value $ 95,959 $ 96,941 Net amount at risk (2) 119 81 Average attained age of contract holders 64 years 64 years Minimum Return Total account value $ 104 $ 108 Net amount at risk (2) 17 18 Average attained age of contract holders 76 years 76 years Guaranteed minimum return 5% 5% Anniversary Contract Value Total account value $ 26,071 $ 26,596 Net amount at risk (2) 543 417 Average attained age of contract holders 70 years 70 years (1) Our variable contracts with guarantees may offer more than one type of guarantee in each contract; therefore, the amounts listed are not mutually exclusive. (2) Represents the amount of death benefit in excess of the account balance that is subject to market fluctuations. The determination of GDB liabilities is based on models that involve a range of scenarios and assumptions, including those regarding expected market rates of return and volatility, contract surrender rates and mortality experience. The following summarizes the balances of and changes in the liabilities for GDBs (in millions), which were recorded in future contract benefits on our Consolidated Balance Sheets: For the Three Months Ended March 31, 2018 2017 Balance as of beginning-of-year $ 100 $ 110 Changes in reserves 11 (5 ) Benefits paid (3 ) (6 ) Balance as of end-of-period $ 108 $ 99 Variable Annuity Contracts Account balances of variable annuity contracts, including those with guarantees, (in millions) were invested in separate account investment options as follows: As of As of March 31, December 31, 2018 2017 Asset Type Domestic equity $ 58,549 $ 59,647 International equity 20,609 20,837 Fixed income 40,443 40,626 Total $ 119,601 $ 121,110 Percent of total variable annuity separate account values 99% 99% Secondary Guarantee Products Future contract benefits and other contract holder funds include reserves for our secondary guarantee products sold through our Life Insurance segment. These UL and VUL products with secondary guarantees represented 32% of total life insurance in-force reserves as of March 31, 2018 and December 31, 2017. UL and VUL products with secondary guarantees represented 35% and 26% of total sales for the three months ended March 31, 2018 and 2017, respectively. |
Contingencies and Commitments
Contingencies and Commitments | 3 Months Ended |
Mar. 31, 2018 | |
Contingencies and Commitments [Abstract] | |
Contingencies and Commitments | 9 . Contingencies and Commitments Regulatory bodies, such as state insura nce departments, the SEC, Financial Industry Regulatory Authority and other regulatory bodies regularly make inquiries and conduct examinations or investigations concerning our compliance with, among other things, insurance laws, securities laws, laws governing the activities of broker-dealers, registered investment advisors and unclaimed property laws. LNL and its affiliates are involved in various pending or threatened legal or regulatory proceedings, including purported class actions, arising from the conduct of business both in the ordinary course and otherwise. In some of the matters, very large and/or indeterminate amounts, including punitive and treble damages, are sought. Modern pleading practice in the U.S. permits considerable variation in the assertion of monetary damages or other relief. Jurisdictions may permit claimants not to specify the monetary damages sought or may permit claimants to state only that the amount sought is sufficient to invoke the jurisdiction of the trial court. In addition, jurisdictions may permit plaintiffs to allege monetary damages in amounts well exceeding verdicts obtained in the jurisdiction for similar matters. This variability in pleadings, together wi th the actual experiences of LNL in litigating or resolving through settlement numerous claims over an extended period of time, demonstrates to management that the monetary relief which may be specified in a lawsuit or claim bears little relevance to its merits or disposition value. Due to the unpredictable nature of litigation, the outcome of a litigation matter and the amount or range of potential loss at particular points in time is normally difficult to ascertain. Uncertainties can include how fact finders will evaluate documentary evidence and the credibility and effectiveness of witness testimony, and how trial and appellate courts will apply the law in the context of the pleadings or evidence presented, whether by motion practice, or at trial or on appeal. Disposition valuations are also subject to the uncertainty of how opposing parties and their counsel will themselves view the relevant evidence and applicable law. We establish liabilities for litigation and regulatory loss contingencies when information related to the loss contingencies shows both that it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. It is possible that some matters could require us to pay damages or make other expenditures or establish accruals in amounts that could not be estimated as of March 31, 2018 . While the potential future charges could be material in the particular quarterly or annual periods in which they are recorded, based on information currently known by management, management does not believe any such charges are likely to have a material adverse effect on LNL ’s financial condition. For some matters, the Company is able to estimate a reasonably possible range of loss. For such matters in which a loss is probable, an accrual has been made. For such matters where a loss is believed to be reasonably possible, but not probable, no accrual has been made. Accordingly, the estimate contained in this paragraph reflects two types of matters. For some matters included within this estimate, an accrual has been made, but there is a reasonable possibility that an exposure exists in excess of the amount accrued. In these cases, the estimate reflects the reasonably possible range of loss in excess of the accrued amount. For other matters included within this estimation, no accrual has been made because a loss, while potentially estimable, is believed to be reasonably possible but not probable. In these cases, the estimate reflects the reasonably possible loss or range of loss. As of March 31, 2018 , we estimate the aggregate range of reasonably possible losses to be up to approximately $ 50 million . For other matters, we are not currently able to estimate the reasonably possible loss or range of loss. We are often unable to estimate the possible loss or range of loss until developments in such matters have provided sufficient information to support an assessment of the range of possible loss, such as quantification of a damage demand from plaintiffs, discovery from other parties and investigation of factual allegations, rulings by the court on motions or appeals, analysis by experts and the progress of settlement negotiations. On a quarterly and annual basis, we review relevant information with respect to litigation contingencies and update our accruals, disclosures and estimates of reasonably possible losses or ranges of loss based on such reviews . Certain reinsurers have sought rate increases on certain yearly renewable term treaties. We are disputing the requested rate increases under these treaties. We have initiated and will initiate arbitration proceedings, as necessary, under these treaties in order to protect our contractual rights. Additionally, reinsurers may initiate arbitration proceedings against us. We believe it is unlikely the outcome of these disputes will have a material adverse effect on our financial condition. For more information about reinsurance, see Note 9 in our 2017 Form 10-K . Cost of Insurance Litigation Tutor v. Lincoln National Corporation and The Lincoln National Life Insurance Company , No. 2:17-cv-04150, filed in the U.S. District Court for the Eastern District of Pennsylvania, is a putative class action filed on September 18, 2017. In March 2018, the Tutor case was consolidated with a newly-filed matter captioned Trinchero, et al. v. Lincoln National Corporation and The Lincoln National Life Insurance Company , filed in the same court, No. 18-cv-00765. The consolidated case is captioned In re: Lincoln National 2017 COI Rate Litigation , Master File No. 17-cv-04150. Plaintiffs own universal life insurance policies originally issued by former Jefferson-Pilot (now LNL). Plaintiffs allege that LNL and LNC breached the terms of policyholders’ contracts by increasing non-guaranteed cost of insurance rates beginning in 2017. Plaintiffs seek to represent classes of policyholders and seek damages on their behalf. We are vigorously defending this matter. See Note 13 in our 2017 Form 10-K for additional discussion of commitments and contingencies, which information is incorporated herein by reference. |
Shares and Stockholders' Equity
Shares and Stockholders' Equity | 3 Months Ended |
Mar. 31, 2018 | |
Shares and Stockholders' Equity [Abstract] | |
Shares and Stockholders' Equity | 10 . Shares and Stockholder ’ s Equity All authorized and issued shares of LNL are owned by LNC. AOCI The following summarizes the components and changes in AOCI (in millions): For the Three Months Ended March 31, 2018 2017 Unrealized Gain (Loss) on AFS Securities Balance as of beginning-of-year $ 3,283 $ 1,687 Cumulative effect from adoption of new accounting standards 634 - Unrealized holding gains (losses) arising during the period (2,924 ) 505 Change in foreign currency exchange rate adjustment 53 21 Change in DAC, VOBA, DSI, future contract benefits and other contract holder funds 957 (119 ) Income tax benefit (expense) 403 (144 ) Less: Reclassification adjustment for gains (losses) included in net income (loss) (19 ) (3 ) Associated amortization of DAC, VOBA, DSI and DFEL (4 ) (5 ) Income tax benefit (expense) 5 3 Balance as of end-of-period $ 2,424 $ 1,955 Unrealized OTTI on AFS Securities Balance as of beginning-of-year $ 39 $ 22 (Increases) attributable to: Cumulative effect from adoption of new accounting standards 9 - Gross OTTI recognized in OCI during the period - - Change in DAC, VOBA, DSI and DFEL - - Income tax benefit (expense) (1 ) - Decreases attributable to: Changes in fair value, sales, maturities or other settlements of AFS securities (9 ) 7 Change in DAC, VOBA, DSI and DFEL (10 ) (1 ) Income tax benefit (expense) 4 (2 ) Balance as of end-of-period $ 32 $ 26 Unrealized Gain (Loss) on Derivative Instruments Balance as of beginning-of-year $ 27 $ 93 Cumulative effect from adoption of new accounting standard 6 - Unrealized holding gains (losses) arising during the period (83 ) 3 Change in foreign currency exchange rate adjustment (50 ) (20 ) Change in DAC, VOBA, DSI and DFEL 4 (4 ) Income tax benefit (expense) 28 7 Less: Reclassification adjustment for gains (losses) included in net income (loss) 6 11 Associated amortization of DAC, VOBA, DSI and DFEL (1 ) (2 ) Income tax benefit (expense) (1 ) (3 ) Balance as of end-of-period $ (72 ) $ 73 Funded Status of Employee Benefit Plans Balance as of beginning-of-year $ (22 ) $ (20 ) Cumulative effect from adoption of new accounting standard (5 ) - Balance as of end-of-period $ (27 ) $ (20 ) The following summarizes the reclassifications out of AOCI (in millions) and the associated line item in the Consolidated Statements of Comprehensive Income (Loss): For the Three Months Ended March 31, 2018 2017 Unrealized Gain (Loss) on AFS Securities Gross reclassification $ (19 ) $ (3 ) Total realized gain (loss) Associated amortization of DAC, VOBA, DSI and DFEL (4 ) (5 ) Total realized gain (loss) Reclassification before income Income (loss) from continuing tax benefit (expense) (23 ) (8 ) operations before taxes Income tax benefit (expense) 5 3 Federal income tax expense (benefit) Reclassification, net of income tax $ (18 ) $ (5 ) Net income (loss) Unrealized OTTI on AFS Securities Gross reclassification $ - $ - Total realized gain (loss) Change in DAC, VOBA, DSI and DFEL - - Total realized gain (loss) Reclassification before income Income (loss) from continuing tax benefit (expense) - - operations before taxes Income tax benefit (expense) - - Federal income tax expense (benefit) Reclassification, net of income tax $ - $ - Net income (loss) Unrealized Gain (Loss) on Derivative Instruments Gross reclassifications: Interest rate contracts $ 1 $ 2 Net investment income Foreign currency contracts 5 4 Net investment income Foreign currency contracts - 5 Total realized gain (loss) Total gross reclassifications 6 11 Associated amortization of DAC, VOBA, DSI and DFEL (1 ) (2 ) Commissions and other expenses Reclassifications before income Income (loss) from continuing tax benefit (expense) 5 9 operations before taxes Income tax benefit (expense) (1 ) (3 ) Federal income tax expense (benefit) Reclassifications, net of income tax $ 4 $ 6 Net income (loss) |
Realized Gain (Loss)
Realized Gain (Loss) | 3 Months Ended |
Mar. 31, 2018 | |
Realized Gain (Loss) [Abstract] | |
Realized Gain (Loss) | 11 . Realized Gain (Loss) Details underlying realized gain (loss) (in millions) reported on our Consolidated Statements of Comprehensive Income (Loss) were as follows: For the Three Months Ended March 31, 2018 2017 Total realized gain (loss) related to certain investments (1) $ (25 ) $ (14 ) Realized gain (loss) on the mark-to-market on certain instruments (2) 105 (14 ) Indexed annuity and IUL contracts net derivatives results: (3) Gross gain (loss) (1 ) (9 ) Associated amortization of DAC, VOBA, DSI and DFEL - (2 ) GLB fees ceded to LNBAR and attributed fees: Gross gain (loss) (49 ) (42 ) Associated amortization of DAC, VOBA, DSI and DFEL (8 ) (8 ) Total realized gain (loss) $ 22 $ (89 ) (1) See “Realized Gain (Loss) Related to Certain Investments” section in Note 5. (2) Represents changes in the fair values of certain derivative investments (not including those associated with our variable and indexed annuity and IUL contracts net derivatives results), reinsurance related embedded derivatives and trading securities. (3) Represents the net difference between the change in the fair value of the S&P 500 Index ® call options that we hold and the change in the fair value of the embedded derivative liabilities of our indexed annuity and IUL contracts along with changes in the fair value of embedded derivative liabilities related to index call options we may purchase in the future to hedge contract holder index allocations applicable to future reset periods for our indexed annuity products. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value of Financial Instruments [Abstract] | |
Fair Value of Financial Instruments | 1 2 . Fair Value of Financial Instruments The carrying values and estimated fair values of our financial instruments (in millions) were as follows: As of March 31, 2018 As of December 31, 2017 Carrying Fair Carrying Fair Value Value Value Value Assets AFS securities: Fixed maturity securities $ 90,709 $ 90,709 $ 93,340 $ 93,340 Equity securities - - 246 246 Trading securities 1,468 1,468 1,533 1,533 Equity securities 112 112 - - Mortgage loans on real estate 10,954 10,900 10,662 10,773 Derivative investments (1) 725 725 845 845 Other investments 1,807 1,807 2,006 2,006 Cash and invested cash 1,239 1,239 947 947 Reinsurance related embedded derivatives 58 58 - - Other assets: GLB direct embedded derivatives 1,110 1,110 903 903 GLB ceded embedded derivatives 45 45 51 51 Indexed annuity ceded embedded derivatives 17 17 11 11 Separate account assets 142,761 142,761 144,219 144,219 Liabilities Future contract benefits – indexed annuity and IUL contracts embedded derivatives (1,346 ) (1,346 ) (1,418 ) (1,418 ) Other contract holder funds: Remaining guaranteed interest and similar contracts (580 ) (580 ) (592 ) (592 ) Account values of certain investment contracts (31,172 ) (33,549 ) (32,332 ) (36,161 ) Short-term debt (39 ) (39 ) (10 ) (10 ) Long-term debt (2,363 ) (2,815 ) (2,374 ) (2,677 ) Reinsurance related embedded derivatives - - (51 ) (51 ) Other liabilities: Derivative liabilities (1) (359 ) (359 ) (455 ) (455 ) GLB ceded embedded derivatives (1,155 ) (1,155 ) (954 ) (954 ) (1) We have master netting agreements with each of our derivative counterparties, which allow for the netting of our derivative asset and liability positions by counterparty. Valuation Methodologies and Associated Inputs for Financial Instruments Not Carried at Fair Value The following discussion outlines the methodologies and assumptions used to determine the fair value of our financial instruments not carried at fair value on our Consolidated Balance Sheets. Considerable judgment is required to develop these assumptions used to measure fair value. Accordingly, the estimates shown are not necessarily indicative of the amounts that would be realized in a one-time, current market exchange of all of our financial instruments. Mortgage Loans on Real Estate The fair value of mortgage loans on real estate is established using a discounted cash flow method based on credit rating, maturity and future income. The ratings for mortgages in good standing are based on property type, location, market conditions, occupancy, debt-service coverage, loan-to-value, quality of tenancy, borrower and payment record. The fair value for impaired mortgage loans is based on the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s market price or the fair value of the collateral if the loan is collateral dependent. The inputs used to measure the fair value of our mortgage loans on real estate are classified as Level 2 within the fair value hierarchy. Other Investments The carrying value of our assets classified as other investments approximates fair value. Other investments includes primarily LPs and other privately held investments that are accounted for using the equity method of accounting and the carrying value is based on our proportional share of the net assets of the LPs. Other investments also include FHLB stock carried at cost and periodically evaluated for impairment based on ultimate recovery of par value. The inputs used to measure the fair value of our LPs, other privately held investments and FHLB stock are classified as Level 3 within the fair value hierarchy. The remaining assets in other investments include cash collateral receivables and securities that are not LPs or other privately held investments. The inputs used to measure the fair value of these assets are classified as Level 1 within the fair value hierarchy. Other Contract Holder Funds Other contract holder funds include remaining guaranteed interest and similar contracts and account values of certain investment contracts. The fair value for the remaining guaranteed interest and similar contracts is estimated using discounted cash flow calculations as of the balance sheet date. These calculations are based on interest rates currently offered on similar contracts with maturities that are consistent with those remaining for the contracts being valued. As of March 31, 2018 , and December 31, 2017 , the remaining guaranteed interest and similar contracts carrying value approximated fair value. The fair value of the account values of certain investment contracts is based on their approximate surrender value as of the balance sheet date. The inputs used to measure the fair value of our other contract holder funds are classified as Level 3 within the fair value hierarchy. Short-Term and Long-Term Debt The fair value of short-term and long-term debt is based on quoted market prices. The inputs used to measure the fair value of our short-term and long-term debt are classified as Level 2 within the fair value hierarchy. Financial Instruments Carried at Fair Value We did not have any assets or liabilities measured at fair value on a nonrecurring basis as of March 31, 2018 , o r December 31, 2017 , and we noted no changes in our valuation methodologies between these periods. The following summarizes our financial instruments carried at fair value (in millions) on a recurring basis by the fair value hierarchy levels described in “Summary of Significant Accounting Policies” in Note 1 of our 2017 Form 10-K : As of March 31, 2018 Quoted Prices in Active Markets for Significant Significant Identical Observable Unobservable Total Assets Inputs Inputs Fair (Level 1) (Level 2) (Level 3) Value Assets Investments: Fixed maturity AFS securities: Corporate bonds $ - $ 73,354 $ 5,485 $ 78,839 ABS - 875 26 901 U.S. government bonds 360 4 5 369 Foreign government bonds - 327 108 435 RMBS - 3,173 - 3,173 CMBS - 635 27 662 CLOs - 873 2 875 State and municipal bonds - 4,844 - 4,844 Hybrid and redeemable preferred securities 69 465 77 611 Trading securities 72 1,349 47 1,468 Equity securities 29 56 27 112 Derivative investments (1) - 533 689 1,222 Cash and invested cash - 1,239 - 1,239 Reinsurance related embedded derivatives - 58 - 58 Other assets: GLB direct embedded derivatives - - 1,110 1,110 GLB ceded embedded derivatives - - 45 45 Indexed annuity ceded embedded derivatives - - 17 17 Separate account assets 966 141,795 - 142,761 Total assets $ 1,496 $ 229,580 $ 7,665 $ 238,741 Liabilities Future contract benefits – indexed annuity and IUL contracts embedded derivatives $ - $ - $ (1,346 ) $ (1,346 ) Other liabilities: Derivative liabilities (1) - (446 ) (410 ) (856 ) GLB ceded embedded derivatives - - (1,155 ) (1,155 ) Total liabilities $ - $ (446 ) $ (2,911 ) $ (3,357 ) As of December 31, 2017 Quoted Prices in Active Markets for Significant Significant Identical Observable Unobservable Total Assets Inputs Inputs Fair (Level 1) (Level 2) (Level 3) Value Assets Investments: Fixed maturity AFS securities: Corporate bonds $ - $ 75,810 $ 5,350 $ 81,160 ABS - 927 26 953 U.S. government bonds 522 6 5 533 Foreign government bonds - 336 110 446 RMBS - 3,246 12 3,258 CMBS - 593 6 599 CLOs - 717 91 808 State and municipal bonds - 4,959 - 4,959 Hybrid and redeemable preferred securities 70 478 76 624 Equity AFS securities 28 57 161 246 Trading securities 73 1,411 49 1,533 Derivative investments (1) - 740 603 1,343 Cash and invested cash - 947 - 947 Other assets: GLB direct embedded derivatives - - 903 903 GLB ceded embedded derivatives - - 51 51 Indexed annuity ceded embedded derivatives - - 11 11 Separate account assets 814 143,405 - 144,219 Total assets $ 1,507 $ 233,632 $ 7,454 $ 242,593 Liabilities Future contract benefits – indexed annuity and IUL contracts embedded derivatives $ - $ - $ (1,418 ) $ (1,418 ) Reinsurance related embedded derivatives - (51 ) - (51 ) Other liabilities: Derivative liabilities (1) - (380 ) (573 ) (953 ) GLB ceded embedded derivatives - - (954 ) (954 ) Total liabilities $ - $ (431 ) $ (2,945 ) $ (3,376 ) (1) Derivative investment assets and liabilities presented within the fair value hierarchy are presented on a gross basis by derivative type and not on a master netting basis by counterparty. The followin g summarizes changes to our financial instruments carried at fair value (in millions) and classified within Level 3 of the fair value hierarchy. This summary excludes any effect of amortization of deferred acquisition costs (“ DAC ”) , value of business acquired (“ VOBA ”) , deferred sales inducements (“ DSI ”) and deferred front-end loads (“ DFEL ”) . T he gains and losses below may include changes in fair value due in part to observable inputs that are a component of the valuation methodolog y. For the Three Months Ended March 31, 2018 Gains Issuances, Transfers Items (Losses) Sales, Into or Included in Maturities, Out Beginning in OCI Settlements, of Ending Fair Net and Calls, Level 3, Fair Value Income Other (1) Net Net (2)(3) Value Investments: (4) Fixed maturity AFS securities: Corporate bonds $ 5,350 $ 3 $ 18 $ 97 $ 17 $ 5,485 ABS 26 - - - - 26 U.S. government bonds 5 - - - - 5 Foreign government bonds 110 - (2 ) - - 108 RMBS 12 - - - (12 ) - CMBS 6 1 - 20 - 27 CLOs 91 - - 2 (91 ) 2 Hybrid and redeemable preferred securities 76 - 1 - - 77 Equity AFS securities 161 - - - (161 ) - Trading securities 49 (2 ) - - - 47 Equity securities - - - 1 26 27 Derivative investments 30 330 (25 ) (56 ) - 279 Other assets: (5) GLB direct embedded derivatives 903 207 - - - 1,110 GLB ceded embedded derivatives 51 (6 ) - - - 45 Indexed annuity ceded embedded derivatives 11 - - 6 - 17 Future contract benefits – indexed annuity and IUL contracts embedded derivatives (5) (1,418 ) 52 - 20 - (1,346 ) Other liabilities – GLB ceded embedded derivatives (5) (954 ) (201 ) - - - (1,155 ) Total, net $ 4,509 $ 384 $ (8 ) $ 90 $ (221 ) $ 4,754 For the Three Months Ended March 31, 2017 Gains Issuances, Transfers Items (Losses) Sales Into or Included in Maturities, Out Beginning in OCI Settlements, of Ending Fair Net and Calls, Level 3, Fair Value Income Other (1) Net Net (2) Value Investments: (4) Fixed maturity AFS securities: Corporate bonds $ 4,809 $ 5 $ 65 $ (200 ) $ 131 $ 4,810 ABS 33 - 1 - (6 ) 28 U.S. government bonds - - - - 5 5 Foreign government bonds 111 - (1 ) - - 110 RMBS 3 - - 4 - 7 CMBS 7 - - 41 (4 ) 44 CLOs 68 - - 5 15 88 State and municipal bonds - (1 ) - - 2 1 Hybrid and redeemable preferred securities 76 - 3 - - 79 Equity AFS securities 177 1 (1 ) 5 - 182 Trading securities 65 1 7 (16 ) 3 60 Derivative investments (93 ) (69 ) 23 251 - 112 Other assets: (5) GLB direct embedded derivatives - 226 - - - 226 GLB ceded embedded derivatives 371 (254 ) - - - 117 Future contract benefits – indexed annuity and IUL contracts embedded derivatives (5) (1,139 ) (120 ) - 21 - (1,238 ) Other liabilities: (5) GLB direct embedded derivatives (371 ) 371 - - - - GLB ceded embedded derivatives - (342 ) - - - (342 ) Total, net $ 4,117 $ (182 ) $ 97 $ 111 $ 146 $ 4,289 (1) The changes in fair value of the interest rate swaps are offset by an adjustment to derivative investments (see Note 6). (2) Transfers into or out of Level 3 for AFS and trading securities are displayed at amortized cost as of the beginning-of-year. For AFS and trading securities, the difference between beginning-of-year amortized cost and beginning-of-year fair value was included in OCI and earnings, respectively, in the prior period. (3) Transfers into or out of Level 3 for FHLB stock between equity securities and other investments at cost on our Consolidated Balance Sheets. (4) Amortization and accretion of premiums and discounts are included in net investment income on our Consolidated Statements of Comprehensive Income (Loss). Gains (losses) from sales, maturities, settlements and calls and OTTI are included in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). (5) Gains (losses) from sales, maturities, settlements and calls are included in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). The following provides the components of the items included in issuances, sales, maturities, settlements and calls, net, excluding any effect of amortization of DAC, VOBA, DSI and DFEL and changes in future contract benefits, (in millions) as reported above: For the Three Months Ended March 31, 2018 Issuances Sales Maturities Settlements Calls Total Investments: Fixed maturity AFS securities: Corporate bonds $ 248 $ (57 ) $ (2 ) $ (92 ) $ - $ 97 CMBS 21 - - (1 ) - 20 CLOs 2 - - - - 2 Equity securities 1 - - - - 1 Derivative investments 67 (6 ) (117 ) - - (56 ) Other assets – indexed annuity ceded embedded derivatives 6 - - - - 6 Future contract benefits – indexed annuity and IUL contracts embedded derivatives (27 ) - - 47 - 20 Total, net $ 318 $ (63 ) $ (119 ) $ (46 ) $ - $ 90 For the Three Months Ended March 31, 2017 Issuances Sales Maturities Settlements Calls Total Investments: Fixed maturity AFS securities: Corporate bonds $ 41 $ (62 ) $ (22 ) $ (62 ) $ (95 ) $ (200 ) RMBS 4 - - - - 4 CMBS 41 - - - - 41 CLOs 5 - - - - 5 Equity AFS securities 7 (2 ) - - - 5 Trading securities 1 (17 ) - - - (16 ) Derivative investments 47 294 (90 ) - - 251 Future contract benefits – indexed annuity and IUL contracts embedded derivatives (18 ) - - 39 - 21 Total, net $ 128 $ 213 $ (112 ) $ (23 ) $ (95 ) $ 111 The following summarizes changes in unrealized gains (losses) included in net income, excluding any effect of amortization of DAC, VOBA, DSI and DFEL and changes in future contract benefits, related to financial instruments carried at fair value classified within Level 3 that we still held (in millions): For the Three Months Ended March 31, 2018 2017 Derivative investments $ 281 $ (74 ) Embedded derivatives: Indexed annuity and IUL contracts (4 ) (14 ) Other assets – GLB direct and ceded 376 747 Other liabilities – GLB ceded (376 ) (747 ) Total, net (1) $ 277 $ (88 ) (1) Included in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). The following provides the components of the transfers into and out of Level 3 (in millions) as reported above: For the Three For the Three Months Ended Months Ended March 31, 2018 March 31, 2017 Transfers Transfers Transfers Transfers Into Out of Into Out of Level 3 Level 3 Total Level 3 Level 3 Total Investments: Fixed maturity AFS securities: Corporate bonds $ 40 $ (23 ) $ 17 $ 160 $ (29 ) $ 131 ABS - - - - (6 ) (6 ) U.S. government bonds - - - 5 - 5 RMBS - (12 ) (12 ) - - - CMBS - - - - (4 ) (4 ) CLOs - (91 ) (91 ) 30 (15 ) 15 State and municipal bonds - - - 2 - 2 Equity AFS securities - (161 ) (161 ) - - - Trading securities - - - 3 - 3 Equity securities 26 - 26 - - - Total, net $ 66 $ (287 ) $ (221 ) $ 200 $ (54 ) $ 146 Transfers into and out of Level 3 are generally the result of observable market information on a security no longer being available or becoming available to our pricing vendors. For the three months ended March 31, 2018 and 2017 , transfers in and out of Level 3 were attributable primarily to the securities’ observable market information no longer being available or becoming available . In 2018, transfers into or out of Level 3 include FHLB stock between equity securities and other investments at cost on our Consolidated Balance Sheets. Transfers into and out of Levels 1 and 2 are generally the result of a change in the type of input used to measure the fair value of an asset or liability at the end of the reporting period. When quoted prices in active markets become available, transfers from Level 2 to Level 1 will result. When quoted prices in active markets become unavailable, but we are able to employ a valuation methodology using significant observable inputs, transfers from Level 1 to Le vel 2 will result. For the three months ended March 31, 2018 and 2017 , the transfers between Levels 1 and 2 of the fair value hierarchy were less than $1 million for our financial instruments carried at fa ir value. The following summarizes the fair value ( in millions), valuation techniques and significant unobservable inputs of the Level 3 fair value measurements as of March 31, 2018 : Fair Valuation Significant Assumption or Value Technique Unobservable Inputs Input Ranges Assets Investments: Fixed maturity AFS and trading securities: Corporate bonds $ 2,570 Discounted cash flow Liquidity/duration adjustment (1) 0.5 % - 22.2 % ABS 23 Discounted cash flow Liquidity/duration adjustment (1) 3.0 % - 3.0 % Foreign government bonds 78 Discounted cash flow Liquidity/duration adjustment (1) 1.6 % - 3.1 % Hybrid and redeemable preferred securities 4 Discounted cash flow Liquidity/duration adjustment (1) 1.8 % - 1.8 % Equity securities 21 Discounted cash flow Liquidity/duration adjustment (1) 4.5 % - 5.0 % Other assets: GLB direct and ceded embedded derivatives 1,155 Discounted cash flow Long-term lapse rate (2) 1 % - 30 % Utilization of guaranteed withdrawals (3) 85 % - 100 % Claims utilization factor (4) 60 % - 100 % Premiums utilization factor (4) 80 % - 115 % NPR (5) 0.02 % - 0.30 % Mortality rate (6) (8) Volatility (7) 1 % - 29 % Indexed annuity ceded embedded derivatives 17 Discounted cash flow Lapse rate (2) 1 % - 9 % Mortality rate (6) (8) Liabilities Future contract benefits – indexed annuity and IUL contracts embedded derivatives $ (1,346 ) Discounted cash flow Lapse rate (2) 1 % - 9 % Mortality rate (6) (8) Other liabilities – GLB ceded embedded derivatives (1,155 ) Discounted cash flow Long-term lapse rate (2) 1 % - 30 % Utilization of guaranteed withdrawals (3) 85 % - 100 % Claims utilization factor (4) 60 % - 100 % Premiums utilization factor (4) 80 % - 115 % NPR (5) 0.02 % - 0.30 % Mortality rate (6) (8) Volatility (7) 1 % - 29 % (1) The liquidity /duration adjustment input represents an estimated market participant composite of adjustments attributable to liquidity premiums, expected durations, structures and credit quality that would be applied to the market observable information of an investment. (2) The lapse rate input represents the estimated probability of a contract surrendering during a year, and thereby forgoing any future benefits. The range for indexed annuity and IUL contracts represents the lapse rates during the surrender charge period. (3) The utilization of guaranteed withdrawals input represents the estimated percentage of contract holders that utilize the guaranteed withdrawal feature. (4) The utilization factors are applied to the present value of claims or premiums, as appropriate, in the GLB reserve calculation to estimate the impact of inefficient withdrawal behavior, including taking less than or more than the maximum guaranteed withdrawal. (5) The NPR input represents the estimated additional credit spread that market participants would apply to the market observable discount rate when pricing a contract. (6) The mortality rate input represents the estimated probability of when an individual belonging to a particular group, categorized according to age or some other factor such as gender, will die. (7) The volatility input represents overall volatilities assumed for the underlying variable annuity funds, which include a mixture of equity and fixed-income assets. Fair value of the variable annuity GLB embedded derivatives would increase if higher volatilities were used for valuation. (8) The mortality rate is based on a combination of company and industry experience, adjusted for improvement factors. From the table above, we have excluded Level 3 fair value measurements obtained from independent, third-party pricing sources. We do not develop the significant inputs used to measure the fair value of these assets and liabilities, and the information regarding the significant inputs is not readily available to us. Independent broker-quoted fair values are non-binding quotes developed by market makers or broker-dealers obtained from third-party sources recognized as market participants. The fair value of a broker-quoted asset or liability is based solely on the receipt of an updated quote from a single market maker or a broker-dealer recognized as a market participant as we do not adjust broker quotes when used as the fair value measurement for an asset or liability. Significant increases or decreases in any of the quotes received from a third-party broker-dealer may result in a significantly higher or lower fair value measurement. Changes in any of the significant inputs presented in the table above may result in a significant change in the fair value measurement of the asset or liability as follows: · Investments – An increase in the liquidity/duration adjustment input would result in a decrease in the fair value measurement. · Indexed annuity and IUL contracts embedded derivatives – For direct embedded derivatives, a n increase in the lapse rate or mortality rate inputs would result in a decrease in the fair value measurement. · GLB embedded derivatives – Assuming our GLB direct embedded derivative s are in a liability position: an increase in our lapse rate, NPR or mortality rate inputs would result in a decrease in the fair value measurement; and an increase in the utilization of guaranteed withdrawal or volatility inputs would result in an increase in the fair value measurement. For each category discussed above, the unobservable inputs are not inter-related; therefore, a directional change in one input will not affect the other inputs. As part of our ongoing valuation process, we assess the reasonableness of our valuation techniques or models and make adjustments as necessary. For more information, see “Summary of Significant Accounting Policies” in Note 1 of our 2017 Form 10-K. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2018 | |
Segment Information [Abstract] | |
Segment Information | 13 . Segment Information We provide products and services and report results through our Annuities, Retirement Plan Services, Life Insurance and Group Protection segments. We also have Other Operations, which includes the financial data for operations that are not directly related to the business segments. Our reporting segments reflect the manner by which our chief operating decision makers view and manage the business. See Not e 21 of our 2017 Form 10-K for a brief description of these segments and Other Operations. Segment operating revenues and income (loss) from operations are internal measures used by our management and Board of Directors to evaluate and assess the results of our segments. Income (loss) from operations is GAAP net income excluding the after-tax effects of the following items, as applicable: · Realized gains and losses associated with the following ( “ excluded realized gain (loss) ” ): § Sales or disposals and impairments of securities; § Changes in the fair value of derivatives, embedded derivatives within certain reinsurance arrangements and trading securities; § GLB rider fees ceded to Lincoln National Reinsurance Company (Barbados) Limited (“LNBAR”); § The net valuation premium of the GLB attributed rider fees; § Changes in the fair value of the embedded derivative liabilities related to index call options we may purchase in the future to hedge contract holder index allocations applicable to future reset periods for our indexed annuity products accounted for at fair value; and § Changes in the fair value of equity securities; · Income (loss) from reserve changes, net of related amortization, on business sold through reinsurance; · Gains (losses) on early extinguishment of debt; · Losses from the impairment of intangible assets; · Income (loss) from discontinued operations ; · Acquisition and integration costs related to mergers and acquisitions ; and · Income (loss) from the initial adoption of new accounting standards , regulations, and policy changes including the net impact from the Tax Cuts and Jobs Act . Operating revenues represent GAAP revenues excluding the pre-tax effects of the following items, as applicable : · Excluded realized gain (loss); · Revenue adjustments from the initial adoption of new accounting standards; · Amortization of DFEL arising from changes in GDB and GLB benefit ratio unlocking; and · Amortization of deferred gains arising from reserve changes on business sold through reinsura nce. We use our prevailing corporate federal income tax rate s of 21% and 35 % , where applicable, while taking into account any permanent differences for events recognized differently in our financial statements and federal income tax returns when reconciling our non-GAAP measures to the most comparable GAAP measure. Operating revenues and income (loss) from operations do not replace revenues and net income as the GAAP measures of our consolidated results of operations. Segment information (in millions) was as follows: For the Three Months Ended March 31, 2018 2017 Revenues Operating revenues: Annuities $ 984 $ 978 Retirement Plan Services 288 279 Life Insurance 1,549 1,483 Group Protection 552 541 Other Operations 58 78 Excluded realized gain (loss), pre-tax (27 ) (131 ) Amortization of deferred gain arising from reserve changes on business sold through reinsurance, pre-tax - 1 Total revenues $ 3,404 $ 3,229 For the Three Months Ended March 31, 2018 2017 Net Income (Loss) Income (loss) from operations: Annuities $ 272 $ 278 Retirement Plan Services 40 35 Life Insurance 122 114 Group Protection 29 7 Other Operations (18 ) - Excluded realized gain (loss), after-tax (22 ) (85 ) Net impact from the Tax Cuts and Jobs Act (12 ) - Acquisition and integration costs related to mergers and acquisitions, after-tax (4 ) - Net income (loss) $ 407 $ 349 Revenue from Contracts with Customers As discussed in Note 2, we adopted ASU 2014-09, Revenue from Contracts with Customers, as of January 1, 2018, that applies primarily to commissions and advisory fees earned by our broker dealer operation. The following table illustrates the revenue recognized from contracts with customers reported within fee income and other revenues on our Consolidated Statements of Comprehensive Income (Loss) and timing of revenue recognition by segment (in millions) : For the Three Months Ended March 31, 2018 Retirement Plan Life Group Other Annuities Services Insurance Protection Operations Total Revenue from Contracts with Customers Fee income $ 133 $ 42 $ 5 $ - $ - $ 180 Other revenues 93 4 3 5 - 105 Total revenue from contracts with customers $ 226 $ 46 $ 8 $ 5 $ - $ 285 Timing of Revenue Recognition Satisfaction of performance obligation: Transferred at a point in time $ 2 $ 1 $ 2 $ - $ - $ 5 Transferred over time 224 45 6 5 - 280 Total revenue from contracts with customers $ 226 $ 46 $ 8 $ 5 $ - $ 285 Revenue recognized from contracts with customers included in fee income consists primarily of wholesaling-related 12b-1 fees and net investment advisory fees. The 12b-1 fees are received from separate account fund sponsors as compensation for servicing the underlying mutual funds. The net investment advisory fees are related to asset management of certain separate account funds. Such revenues are recorded based on a contractual percentage of the market value of mutual fund assets over the period shares are owned by customers, and on a contractual percentage of the customer’s managed assets over the period advisory services are provided, respectively. Revenue recognized from contracts with customers included in other revenues relates to our retail sales network and consists primarily of commission revenue for the sale of non-affiliated securities recorded on a trade-date basis and advisory fee income. Advisory fee income is asset-based revenues recorded as earned based on a contractual percentage of customer account values . |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | 14 . Subsequent Events On April 25, 2018, LNL received a capital contribution in the amount of $500 million from LNC. Management identified no additional items or events required for disclosure. |
Nature of Operations and Basi21
Nature of Operations and Basis of Presentation (Policy) | 3 Months Ended |
Mar. 31, 2018 | |
Nature of Operations and Basis of Presentation [Abstract] | |
Nature Of Operations | Nature of Operations The Lincoln National Life Insurance Company (“LNL” or the “Company,” which also may be referred to as “we,” “our” or “us”), a wholly-owned subsidiary of Lincoln National Corporation (“LNC” or the “Parent Company”), is domiciled in the state of Indiana. We own 100% of the outstanding common stock of Lincoln Life & Annuity Company of New York (“LLANY”), our insurance company subsidiary. We also own several non-insurance companies, including Lincoln Financial Distributors and Lincoln Financial Advisors, LNC’s wholesaling and retailing business units, respectively. Through our business segments, we sell a wide range of wealth protection, accumulation and retirement income products and solutions. These products primarily include fixed and indexed annuities, variable annuities, universal life insurance (“UL”), variable universal life insurance (“VUL”), linked-benefit UL, indexed universal life insurance (“IUL”), term life insurance, employer-sponsored retirement plans and services, and group life, disability and dental. LNL is licensed and sells its products throughout the U.S. and several U.S. territories. See Note 13 for additional information. |
Basis Of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements are prepared in accordance with United States of America generally accepted accounting principles (“GAAP”) for interim financial information and wit h the ins tructions for the Securities and Exchange Commission (“SEC”) Quarterly Report on Form 10-Q, including Article 10 of Regulation S-X . Acco rdingly, they do not include all of the information and notes required by GAAP for complete financial statements. Therefore, the information contained in the Notes to Consolidated Financial Statements included in the Company’s Form 10-K for the year ended December 31, 2017 (“2017 Form 10-K”) , should be read in connection with the reading of these interim unaudited c onsolidated financial statements. Certain GAAP policies, which significantly affect the determination of financial condition, results of operations and cash flows, are summarized in our 2017 Form 10-K. In the opinion of management, these statements include all normal recurring adjustments necessary for a fair presentation of the Company’s results. Operating results for the three months ended March 31, 2018 , are not necessarily indicative of the results that may be expected for the full year ending December 31, 2018 . All material inter-company accounts and transactions have been eliminated in consolidation. |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Investments [Abstract] | |
Reconciliation Of Available-For-Sale Securities From Cost Basis To Fair Value | As of March 31, 2018 Amortized Gross Unrealized Fair Cost Gains Losses OTTI (1) Value Fixed maturity AFS securities: Corporate bonds $ 75,264 $ 4,465 $ 898 $ (8 ) $ 78,839 Asset-backed securities ("ABS") 847 46 7 (15 ) 901 U.S. government bonds 343 28 2 - 369 Foreign government bonds 390 45 - - 435 Residential mortgage-backed securities ("RMBS") 3,090 127 65 (21 ) 3,173 Commercial mortgage-backed securities ("CMBS") 668 5 14 (3 ) 662 Collateralized loan obligations ("CLOs") 872 1 3 (5 ) 875 State and municipal bonds 4,051 803 10 - 4,844 Hybrid and redeemable preferred securities 561 70 20 - 611 Total AFS securities $ 86,086 $ 5,590 $ 1,019 $ (52 ) $ 90,709 As of December 31, 2017 Amortized Gross Unrealized Fair Cost Gains Losses OTTI (1) Value Fixed maturity AFS securities: Corporate bonds $ 74,921 $ 6,573 $ 341 $ (7 ) $ 81,160 ABS 882 51 6 (26 ) 953 U.S. government bonds 497 37 1 - 533 Foreign government bonds 391 55 - - 446 RMBS 3,125 148 36 (21 ) 3,258 CMBS 589 10 2 (2 ) 599 CLOs 803 2 2 (5 ) 808 State and municipal bonds 4,033 932 6 - 4,959 Hybrid and redeemable preferred securities 561 85 22 - 624 Total fixed maturity securities 85,802 7,893 416 (61 ) 93,340 Equity AFS securities 247 16 17 - 246 Total AFS securities $ 86,049 $ 7,909 $ 433 $ (61 ) $ 93,586 (1) Includes unrealized (gains) and losses on impaired securities related to changes in the fair value of such securities subsequent to the impairment measurement date. |
Available-For-Sale Securities By Contractual Maturities | Amortized Fair Cost Value Due in one year or less $ 3,501 $ 3,535 Due after one year through five years 17,420 17,740 Due after five years through ten years 16,530 16,713 Due after ten years 43,158 47,110 Subtotal 80,609 85,098 Structured securities (ABS, MBS, CLOs) 5,477 5,611 Total fixed maturity AFS securities $ 86,086 $ 90,709 |
Fair Value And Gross Unrealized Losses In A Continuous Unrealized Loss Position | As of March 31, 2018 Less Than or Equal Greater Than to Twelve Months Twelve Months Total Gross Gross Gross Unrealized Unrealized Unrealized Fair Losses and Fair Losses and Fair Losses and Value OTTI Value OTTI Value OTTI Fixed maturity AFS securities: Corporate bonds $ 19,380 $ 496 $ 4,371 $ 405 $ 23,751 $ 901 ABS 101 2 134 13 235 15 U.S. government bonds 100 1 18 1 118 2 RMBS 638 17 566 48 1,204 65 CMBS 450 10 59 4 509 14 CLOs 547 3 75 - 622 3 State and municipal bonds 94 2 95 8 189 10 Hybrid and redeemable preferred securities 36 1 123 19 159 20 Total AFS securities $ 21,346 $ 532 $ 5,441 $ 498 $ 26,787 $ 1,030 Total number of AFS securities in an unrealized loss position 2,156 As of December 31, 2017 Less Than or Equal Greater Than to Twelve Months Twelve Months Total Gross Gross Gross Unrealized Unrealized Unrealized Fair Losses and Fair Losses and Fair Losses and Value OTTI Value OTTI Value OTTI Fixed maturity AFS securities: Corporate bonds $ 4,726 $ 67 $ 4,706 $ 276 $ 9,432 $ 343 ABS 56 - 143 15 199 15 U.S. government bonds 156 - 19 1 175 1 RMBS 277 4 599 33 876 37 CMBS 113 - 60 3 173 3 CLOs 281 2 72 - 353 2 State and municipal bonds 33 - 89 5 122 5 Hybrid and redeemable preferred securities 20 - 124 22 144 22 Total fixed maturity securities 5,662 73 5,812 355 11,474 428 Equity AFS securities 22 14 8 3 30 17 Total AFS securities $ 5,684 $ 87 $ 5,820 $ 358 $ 11,504 $ 445 Total number of AFS securities in an unrealized loss position 1,095 |
Schedule Of Available-For-Sale Securities Whose Value Is Below Amortized Cost | As of March 31, 2018 Number Fair Gross Unrealized of Value Losses OTTI Securities (1) Less than six months $ 102 $ 33 $ 2 18 Six months or greater, but less than nine months 17 8 - 4 Nine months or greater, but less than twelve months - - - 3 Twelve months or greater 174 60 8 30 Total $ 293 $ 101 $ 10 55 As of December 31, 2017 Number Fair Gross Unrealized of Value Losses OTTI Securities (1) Less than six months $ 156 $ 57 $ 1 26 Six months or greater, but less than nine months 2 1 - 4 Nine months or greater, but less than twelve months 12 6 - 7 Twelve months or greater 209 77 10 49 Total $ 379 $ 141 $ 11 86 (1) We may reflect a security in more than one aging category based on various purchase dates. |
Schedule Of Changes In Amount Of Credit Losses Of OTTI Recognized In Net Income (Loss) | For the Three Months Ended March 31, 2018 2017 Balance as of beginning-of-year $ 358 $ 411 Increases attributable to: Credit losses on securities for which an OTTI was not previously recognized 2 1 Credit losses on securities for which an OTTI was previously recognized - 3 Decreases attributable to: Securities sold, paid down or matured (1 ) (41 ) Balance as of end-of-period $ 359 $ 374 |
Composition Of Current And Past Due Mortgage Loans On Real Estate | As of As of March 31, December 31, 2018 2017 Current $ 10,954 $ 10,662 60 to 90 days past due - - Greater than 90 days past due 3 3 Valuation allowance associated with impaired mortgage loans on real estate (3 ) (3 ) Unamortized premium (discount) - - Total carrying value $ 10,954 $ 10,662 |
Schedule Of Impaired Mortgage Loans | As of As of March 31, December 31, 2018 2017 Number of impaired mortgage loans on real estate 3 3 Principal balance of impaired mortgage loans on real estate $ 11 $ 11 Valuation allowance associated with impaired mortgage loans on real estate (3 ) (3 ) Carrying value of impaired mortgage loans on real estate $ 8 $ 8 |
Changes In The Valuation Allowance Of Impaired Mortgage Loans On Real Estate | For the Three Months Ended March 31, 2018 2017 Balance as of beginning-of-year $ 3 $ 2 Additions - - Charge-offs, net of recoveries - - Balance as of end-of-period $ 3 $ 2 |
Schedule Of Average Carrying Value Of Impaired Mortgage Loans On Real Estate | For the Three Months Ended March 31, 2018 2017 Average carrying value for impaired mortgage loans on real estate $ 8 $ 5 Interest income recognized on impaired mortgage loans on real estate - - Interest income collected on impaired mortgage loans on real estate - - |
Credit Quality Indicators For Mortgage Loans | As of March 31, 2018 As of December 31, 2017 Debt- Debt- Service Service Carrying % of Coverage Carrying % of Coverage Loan-to-Value Ratio Value Total Ratio Value Total Ratio Less than 65% $ 9,865 90.0% 2.27 $ 9,563 89.7% 2.27 65% to 74% 995 9.1% 1.93 1,000 9.4% 1.94 75% to 100% 86 0.8% 0.98 91 0.8% 0.97 Greater than 100% 8 0.1% 0.82 8 0.1% 0.82 Total mortgage loans on real estate $ 10,954 100.0% $ 10,662 100.0% |
Realized Gain (Loss) Related To Certain Investments | For the Three Months Ended March 31, 2018 2017 Fixed maturity AFS securities: (1) Gross gains $ 13 $ 8 Gross losses (32 ) (12 ) Equity AFS securities: Gross gains - 1 Gross losses - - Gain (loss) on other investments (2) (1 ) (4 ) Associated amortization of DAC, VOBA, DSI and DFEL and changes in other contract holder funds (5 ) (7 ) Total realized gain (loss) related to certain investments, pre-tax $ (25 ) $ (14 ) (1) These amounts are represented net of related fair value hedging activity. See Note 6 for more information. (2) Includes market adjustments on equity securities still held as of March 31, 2018 of less than $1 million. |
OTTI Recognized In Net Income (Loss) And OCI | For the Three Months Ended March 31, 2018 2017 OTTI Recognized in Net Income (Loss) Fixed maturity AFS securities: Corporate bonds $ (2 ) $ (2 ) ABS - (1 ) RMBS - (1 ) Gross OTTI recognized in net income (loss) (2 ) (4 ) Associated amortization of DAC, VOBA, DSI and DFEL - - Net OTTI recognized in net income (loss), pre-tax $ (2 ) $ (4 ) Portion of OTTI Recognized in OCI Gross OTTI recognized in OCI $ - $ - Change in DAC, VOBA, DSI and DFEL - - Net portion of OTTI recognized in OCI, pre-tax $ - $ - |
Payables For Collateral On Investments | As of March 31, 2018 As of December 31, 2017 Carrying Fair Carrying Fair Value Value Value Value Collateral payable for derivative investments (1) $ 587 $ 587 $ 701 $ 701 Securities pledged under securities lending agreements (2) 154 149 222 213 Securities pledged under repurchase agreements (3) 531 557 531 554 Investments pledged for Federal Home Loan Bank of Indianapolis (“FHLBI”) (4) 2,900 4,206 2,900 4,235 Total payables for collateral on investments $ 4,172 $ 5,499 $ 4,354 $ 5,703 (1) We obtain collateral based upon contractual provisions with our counterparties. These agreements take into consideration the counterparties’ credit rating as compared to ours, the fair value of the derivative investments and specified thresholds that if exceeded result in the receipt of cash that is typically invested in cash and invested cash. See Note 6 for additional information. (2) Our pledged securities under securities lending agreements are included in fixed maturity AFS securities on our Consolidated Balance Sheets. We generally obtain collateral in an amount equal to 102 % and 105 % of the fair value of the domestic and foreign securities, respectively. We value collateral daily and obtain additional collateral when deemed appropriate. The cash received in our securities lending program is typically invested in cash and invested cash or fixed maturity AFS securities. (3) Our pledged securities under repurchase agreements are included in fixed maturity AFS securities on our Consolidated Balance Sheets. We obtain collateral in an amount equal to 95 % of the fair value of the securities, and our agreements with third parties contain contractual provisions to allow for additional collateral to be obtained when necessary. The cash received in our repurchase program is typically invested in fixed maturity AFS securities. (4) Our pledged investments for FHLBI are included in fixed maturity AFS securities and mortgage loans on real estate on our Consolidated Balance Sheets. The collateral requirements are generally 105 % to 115 % of the fair value for fixed maturity AFS securities and 155 % to 175 % of the fair value for mortgage loans on real estate. The cash received in these transactions is primarily invested in cash and invested cash or fixed maturity AFS securities. |
Schedule Of Increase (Decrease) In Payables For Collateral On Investments | For the Three Months Ended March 31, 2018 2017 Collateral payable for derivative investments $ (114 ) $ 36 Securities pledged under securities lending agreements (68 ) (90 ) Securities pledged under repurchase agreements - 1 Investments pledged for FHLBI - 150 Total increase (decrease) in payables for collateral on investments $ (182 ) $ 97 |
Schedule Of Securities Pledged By Contractual Maturity | As of March 31, 2018 Overnight and Continuous Up to 30 Days 30 – 90 Days Greater Than 90 Days Total Repurchase Agreements Corporate bonds $ - $ 100 $ 281 $ 150 $ 531 Total - 100 281 150 531 Securities Lending Corporate bonds 154 - - - 154 Total 154 - - - 154 Total gross secured borrowings $ 154 $ 100 $ 281 $ 150 $ 685 As of December 31, 2017 Overnight and Continuous Up to 30 Days 30 – 90 Days Greater Than 90 Days Total Repurchase Agreements Corporate bonds $ - $ 100 $ 281 $ 150 $ 531 Total - 100 281 150 531 Securities Lending Corporate bonds 222 - - - 222 Total 222 - - - 222 Total gross secured borrowings $ 222 $ 100 $ 281 $ 150 $ 753 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Derivative Instruments [Abstract] | |
Outstanding Derivative Instruments With Off-Balance-Sheet Risks | As of March 31, 2018 As of December 31, 2017 Notional Fair Value Notional Fair Value Amounts Asset Liability Amounts Asset Liability Qualifying Hedges Cash flow hedges: Interest rate contracts (1) $ 1,674 $ 21 $ 37 $ 1,544 $ 45 $ 16 Foreign currency contracts (1) 1,887 47 139 1,804 79 79 Total cash flow hedges 3,561 68 176 3,348 124 95 Fair value hedges: Interest rate contracts (1) 564 - 142 563 - 174 Non-Qualifying Hedges Interest rate contracts (1) 99,814 498 164 72,937 657 127 Foreign currency contracts (1) 114 - - 22 - - Equity market contracts (1) 30,416 656 374 30,918 562 557 Credit contracts (1) - - - 52 - - Embedded derivatives: Guaranteed living benefit ("GLB") direct (2) - 1,110 - - 903 - GLB ceded (2) (3) - 45 1,155 - 51 954 Reinsurance related (4) - 58 - - - 51 Indexed annuity and IUL contracts (2) (5) - 17 1,346 - 11 1,418 Total derivative instruments $ 134,469 $ 2,452 $ 3,357 $ 107,840 $ 2,308 $ 3,376 (1) Reported in derivative investments and other liabilities on our Consolidated Balance Sheets. (2) Reported in other assets on our Consolidated Balance Sheets. (3) Reported in other liabilities on our Consolidated Balance Sheets. (4) Reported in reinsurance related embedded derivatives on our Consolidated Balance Sheets. (5) Reported in future contract benefits on our Consolidated Balance Sheets. |
Maturity Of The Notional Amounts Of Derivative Financial Instruments | Remaining Life as of March 31, 2018 Less Than 1 – 5 6 – 10 11 – 30 Over 30 1 Year Years Years Years Years Total Interest rate contracts (1) $ 25,136 $ 13,592 $ 45,940 $ 17,384 $ - $ 102,052 Foreign currency contracts (2) 114 290 426 1,161 10 2,001 Equity market contracts 18,923 8,431 384 14 2,664 30,416 Total derivative instruments with notional amounts $ 44,173 $ 22,313 $ 46,750 $ 18,559 $ 2,674 $ 134,469 (1) As of March 31, 2018 , the latest maturity date for which we were hedging our exposure to the variability in future cash flows for these instruments was November 2019 . (2) As of March 31, 2018 , the latest maturity date for which we were hedging our exposure to the variability in future cash flows for these instruments was September 2049 . |
Change In Unrealized Gain On Derivative Instruments In Accumulated OCI | For the Three Months Ended March 31, 2018 2017 Unrealized Gain (Loss) on Derivative Instruments Balance as of beginning-of-year $ 27 $ 93 Other comprehensive income (loss): Unrealized holding gains (losses) arising during the period: Cumulative effect from adoption of new accounting standard 6 - Cash flow hedges: Interest rate contracts (46 ) (8 ) Foreign currency contracts (37 ) 11 Change in foreign currency exchange rate adjustment (50 ) (20 ) Change in DAC, VOBA, DSI and DFEL 4 (4 ) Income tax benefit (expense) 28 7 Less: Reclassification adjustment for gains (losses) included in net income (loss): Cash flow hedges: Interest rate contracts (1) 1 2 Foreign currency contracts (1) 5 4 Foreign currency contracts (2) - 5 Associated amortization of DAC, VOBA, DSI and DFEL (1 ) (2 ) Income tax benefit (expense) (1 ) (3 ) Balance as of end-of-period $ (72 ) $ 73 (1) The OCI offset is reported within net investment income on our Consolidated Statements of Comprehensive Income (Loss). (2) The OCI offset is reported within realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). |
Gains (Losses) On Derivative Instruments Recorded Within Income (Loss) From Continuing Operations | For the Three Months Ended March 31, 2018 2017 Qualifying Hedges Cash flow hedges: Interest rate contracts (1) $ 1 $ 2 Foreign currency contracts (1) 5 4 Foreign currency contracts (2) - 5 Total cash flow hedges 6 11 Fair value hedges: Interest rate contracts (1) (4 ) (7 ) Interest rate contracts (2) 33 8 Total fair value hedges 29 1 Non-Qualifying Hedges Interest rate contracts (2) (312 ) (50 ) Foreign currency contracts (2) 2 3 Equity market contracts (2) 7 (526 ) Equity market contracts (3) (2 ) 9 Embedded derivatives: Reinsurance related (2) 125 (21 ) Indexed annuity and IUL contracts (2) 52 (120 ) Total derivative instruments $ (93 ) $ (693 ) (1) Reported in net investment income on our Consolidated Statements of Comprehensive Income (Loss). (2) Reported in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). (3) Reported in commissions and other expenses on our Consolidated Statements of Comprehensive Income (Loss). |
Gains (Losses) On Derivative Instruments Designated As Cash Flow Hedges | For the Three Months Ended March 31, 2018 2017 Offset to net investment income $ 6 $ 6 Offset to realized gain (loss) $ - $ 5 |
Open Credit Default Swap Liabilities | As of December 31, 2017 Credit Reason Nature Rating of Number Maximum for of Underlying of Fair Potential Credit Contract Type Maturity Entering Recourse Obligation (1) Instruments Value (2) Payout Basket credit default swaps 12/20/2022 (3) (4) BBB+ 1 $ 1 $ 52 1 $ 1 $ 52 (1) Represents average credit ratings based on the midpoint of the applicable ratings among Moody’s, S&P and Fitch Ratings, as scaled to the corresponding S&P ratings. (2) Broker quotes are used to determine the market value of our credit default swaps. (3) Credit default swaps were entered into in order to hedge the liability exposure on certain variable annuity products. (4) Sellers do not have the right to demand indemnification or compensation from third parties in case of a loss (payment) on the contract. |
Collateral Support Agreements | As of As of March 31, December 31, 2018 2017 Maximum potential payout $ - $ 52 Less: Counterparty thresholds - - Maximum collateral potentially required to post $ - $ 52 |
Schedule Of Collateral Amounts With Rights To Reclaim Or Obligation To Return Cash | As of March 31, 2018 As of December 31, 2017 Collateral Collateral Collateral Collateral Posted by Posted by Posted by Posted by S&P Counter- LNL Counter- LNL Credit Party (Held by Party (Held by Rating of (Held by Counter- (Held by Counter- Counterparty LNL) Party) LNL) Party) AA- $ 79 $ (4 ) $ 116 $ (1 ) A+ 103 (104 ) 178 (453 ) A 185 (3 ) 170 (48 ) A- 219 - 237 - BBB+ - (11 ) - (4 ) $ 586 $ (122 ) $ 701 $ (506 ) |
Schedule Of Offsetting Assets And Liabilities | As of March 31, 2018 Embedded Derivative Derivative Instruments Instruments Total Financial Assets Gross amount of recognized assets $ 976 $ 1,230 $ 2,206 Gross amounts offset (251 ) - (251 ) Net amount of assets 725 1,230 1,955 Gross amounts not offset: Cash collateral (586 ) - (586 ) Non-cash collateral (80 ) - (80 ) Net amount $ 59 $ 1,230 $ 1,289 Financial Liabilities Gross amount of recognized liabilities $ 728 $ 2,501 $ 3,229 Gross amounts offset (247 ) - (247 ) Net amount of liabilities 481 2,501 2,982 Gross amounts not offset: Cash collateral (122 ) - (122 ) Non-cash collateral (205 ) - (205 ) Net amount $ 154 $ 2,501 $ 2,655 As of December 31, 2017 Embedded Derivative Derivative Instruments Instruments Total Financial Assets Gross amount of recognized assets $ 1,082 $ 965 $ 2,047 Gross amounts offset (237 ) - (237 ) Net amount of assets 845 965 1,810 Gross amounts not offset: Cash collateral (701 ) - (701 ) Net amount $ 144 $ 965 $ 1,109 Financial Liabilities Gross amount of recognized liabilities $ 1,037 $ 2,423 $ 3,460 Gross amounts offset (261 ) - (261 ) Net amount of liabilities 776 2,423 3,199 Gross amounts not offset: Cash collateral (506 ) - (506 ) Net amount $ 270 $ 2,423 $ 2,693 |
Guaranteed Benefit Features (Ta
Guaranteed Benefit Features (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Guaranteed Benefit Features [Abstract] | |
Information On Guaranteed Death Benefit Features | As of As of March 31, December 31, 2018 (1) 2017 (1) Return of Net Deposits Total account value $ 95,959 $ 96,941 Net amount at risk (2) 119 81 Average attained age of contract holders 64 years 64 years Minimum Return Total account value $ 104 $ 108 Net amount at risk (2) 17 18 Average attained age of contract holders 76 years 76 years Guaranteed minimum return 5% 5% Anniversary Contract Value Total account value $ 26,071 $ 26,596 Net amount at risk (2) 543 417 Average attained age of contract holders 70 years 70 years (1) Our variable contracts with guarantees may offer more than one type of guarantee in each contract; therefore, the amounts listed are not mutually exclusive. (2) Represents the amount of death benefit in excess of the account balance that is subject to market fluctuations. |
Summary Of Guaranteed Death Benefit Liabilities | For the Three Months Ended March 31, 2018 2017 Balance as of beginning-of-year $ 100 $ 110 Changes in reserves 11 (5 ) Benefits paid (3 ) (6 ) Balance as of end-of-period $ 108 $ 99 |
Account Balances Of Variable Annuity Contracts With Guarantees Invested In Separate Accounts | As of As of March 31, December 31, 2018 2017 Asset Type Domestic equity $ 58,549 $ 59,647 International equity 20,609 20,837 Fixed income 40,443 40,626 Total $ 119,601 $ 121,110 Percent of total variable annuity separate account values 99% 99% |
Shares and Stockholders' Equi25
Shares and Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Shares and Stockholders' Equity [Abstract] | |
Components And Changes In Accumulated OCI | For the Three Months Ended March 31, 2018 2017 Unrealized Gain (Loss) on AFS Securities Balance as of beginning-of-year $ 3,283 $ 1,687 Cumulative effect from adoption of new accounting standards 634 - Unrealized holding gains (losses) arising during the period (2,924 ) 505 Change in foreign currency exchange rate adjustment 53 21 Change in DAC, VOBA, DSI, future contract benefits and other contract holder funds 957 (119 ) Income tax benefit (expense) 403 (144 ) Less: Reclassification adjustment for gains (losses) included in net income (loss) (19 ) (3 ) Associated amortization of DAC, VOBA, DSI and DFEL (4 ) (5 ) Income tax benefit (expense) 5 3 Balance as of end-of-period $ 2,424 $ 1,955 Unrealized OTTI on AFS Securities Balance as of beginning-of-year $ 39 $ 22 (Increases) attributable to: Cumulative effect from adoption of new accounting standards 9 - Gross OTTI recognized in OCI during the period - - Change in DAC, VOBA, DSI and DFEL - - Income tax benefit (expense) (1 ) - Decreases attributable to: Changes in fair value, sales, maturities or other settlements of AFS securities (9 ) 7 Change in DAC, VOBA, DSI and DFEL (10 ) (1 ) Income tax benefit (expense) 4 (2 ) Balance as of end-of-period $ 32 $ 26 Unrealized Gain (Loss) on Derivative Instruments Balance as of beginning-of-year $ 27 $ 93 Cumulative effect from adoption of new accounting standard 6 - Unrealized holding gains (losses) arising during the period (83 ) 3 Change in foreign currency exchange rate adjustment (50 ) (20 ) Change in DAC, VOBA, DSI and DFEL 4 (4 ) Income tax benefit (expense) 28 7 Less: Reclassification adjustment for gains (losses) included in net income (loss) 6 11 Associated amortization of DAC, VOBA, DSI and DFEL (1 ) (2 ) Income tax benefit (expense) (1 ) (3 ) Balance as of end-of-period $ (72 ) $ 73 Funded Status of Employee Benefit Plans Balance as of beginning-of-year $ (22 ) $ (20 ) Cumulative effect from adoption of new accounting standard (5 ) - Balance as of end-of-period $ (27 ) $ (20 ) |
Schedule of Reclassifications Out Of AOCI | For the Three Months Ended March 31, 2018 2017 Unrealized Gain (Loss) on AFS Securities Gross reclassification $ (19 ) $ (3 ) Total realized gain (loss) Associated amortization of DAC, VOBA, DSI and DFEL (4 ) (5 ) Total realized gain (loss) Reclassification before income Income (loss) from continuing tax benefit (expense) (23 ) (8 ) operations before taxes Income tax benefit (expense) 5 3 Federal income tax expense (benefit) Reclassification, net of income tax $ (18 ) $ (5 ) Net income (loss) Unrealized OTTI on AFS Securities Gross reclassification $ - $ - Total realized gain (loss) Change in DAC, VOBA, DSI and DFEL - - Total realized gain (loss) Reclassification before income Income (loss) from continuing tax benefit (expense) - - operations before taxes Income tax benefit (expense) - - Federal income tax expense (benefit) Reclassification, net of income tax $ - $ - Net income (loss) Unrealized Gain (Loss) on Derivative Instruments Gross reclassifications: Interest rate contracts $ 1 $ 2 Net investment income Foreign currency contracts 5 4 Net investment income Foreign currency contracts - 5 Total realized gain (loss) Total gross reclassifications 6 11 Associated amortization of DAC, VOBA, DSI and DFEL (1 ) (2 ) Commissions and other expenses Reclassifications before income Income (loss) from continuing tax benefit (expense) 5 9 operations before taxes Income tax benefit (expense) (1 ) (3 ) Federal income tax expense (benefit) Reclassifications, net of income tax $ 4 $ 6 Net income (loss) |
Realized Gain (Loss) (Tables)
Realized Gain (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Realized Gain (Loss) [Abstract] | |
Details underlying realized (gain) loss | For the Three Months Ended March 31, 2018 2017 Total realized gain (loss) related to certain investments (1) $ (25 ) $ (14 ) Realized gain (loss) on the mark-to-market on certain instruments (2) 105 (14 ) Indexed annuity and IUL contracts net derivatives results: (3) Gross gain (loss) (1 ) (9 ) Associated amortization of DAC, VOBA, DSI and DFEL - (2 ) GLB fees ceded to LNBAR and attributed fees: Gross gain (loss) (49 ) (42 ) Associated amortization of DAC, VOBA, DSI and DFEL (8 ) (8 ) Total realized gain (loss) $ 22 $ (89 ) (1) See “Realized Gain (Loss) Related to Certain Investments” section in Note 5. (2) Represents changes in the fair values of certain derivative investments (not including those associated with our variable and indexed annuity and IUL contracts net derivatives results), reinsurance related embedded derivatives and trading securities. (3) Represents the net difference between the change in the fair value of the S&P 500 Index ® call options that we hold and the change in the fair value of the embedded derivative liabilities of our indexed annuity and IUL contracts along with changes in the fair value of embedded derivative liabilities related to index call options we may purchase in the future to hedge contract holder index allocations applicable to future reset periods for our indexed annuity products. |
Fair Value of Financial Instr27
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value of Financial Instruments [Abstract] | |
Carrying And Estimated Fair Values Of Financial Instruments | As of March 31, 2018 As of December 31, 2017 Carrying Fair Carrying Fair Value Value Value Value Assets AFS securities: Fixed maturity securities $ 90,709 $ 90,709 $ 93,340 $ 93,340 Equity securities - - 246 246 Trading securities 1,468 1,468 1,533 1,533 Equity securities 112 112 - - Mortgage loans on real estate 10,954 10,900 10,662 10,773 Derivative investments (1) 725 725 845 845 Other investments 1,807 1,807 2,006 2,006 Cash and invested cash 1,239 1,239 947 947 Reinsurance related embedded derivatives 58 58 - - Other assets: GLB direct embedded derivatives 1,110 1,110 903 903 GLB ceded embedded derivatives 45 45 51 51 Indexed annuity ceded embedded derivatives 17 17 11 11 Separate account assets 142,761 142,761 144,219 144,219 Liabilities Future contract benefits – indexed annuity and IUL contracts embedded derivatives (1,346 ) (1,346 ) (1,418 ) (1,418 ) Other contract holder funds: Remaining guaranteed interest and similar contracts (580 ) (580 ) (592 ) (592 ) Account values of certain investment contracts (31,172 ) (33,549 ) (32,332 ) (36,161 ) Short-term debt (39 ) (39 ) (10 ) (10 ) Long-term debt (2,363 ) (2,815 ) (2,374 ) (2,677 ) Reinsurance related embedded derivatives - - (51 ) (51 ) Other liabilities: Derivative liabilities (1) (359 ) (359 ) (455 ) (455 ) GLB ceded embedded derivatives (1,155 ) (1,155 ) (954 ) (954 ) (1) We have master netting agreements with each of our derivative counterparties, which allow for the netting of our derivative asset and liability positions by counterparty. |
Fair Value Of Assets And Liabilities On A Recurring Basis | As of March 31, 2018 Quoted Prices in Active Markets for Significant Significant Identical Observable Unobservable Total Assets Inputs Inputs Fair (Level 1) (Level 2) (Level 3) Value Assets Investments: Fixed maturity AFS securities: Corporate bonds $ - $ 73,354 $ 5,485 $ 78,839 ABS - 875 26 901 U.S. government bonds 360 4 5 369 Foreign government bonds - 327 108 435 RMBS - 3,173 - 3,173 CMBS - 635 27 662 CLOs - 873 2 875 State and municipal bonds - 4,844 - 4,844 Hybrid and redeemable preferred securities 69 465 77 611 Trading securities 72 1,349 47 1,468 Equity securities 29 56 27 112 Derivative investments (1) - 533 689 1,222 Cash and invested cash - 1,239 - 1,239 Reinsurance related embedded derivatives - 58 - 58 Other assets: GLB direct embedded derivatives - - 1,110 1,110 GLB ceded embedded derivatives - - 45 45 Indexed annuity ceded embedded derivatives - - 17 17 Separate account assets 966 141,795 - 142,761 Total assets $ 1,496 $ 229,580 $ 7,665 $ 238,741 Liabilities Future contract benefits – indexed annuity and IUL contracts embedded derivatives $ - $ - $ (1,346 ) $ (1,346 ) Other liabilities: Derivative liabilities (1) - (446 ) (410 ) (856 ) GLB ceded embedded derivatives - - (1,155 ) (1,155 ) Total liabilities $ - $ (446 ) $ (2,911 ) $ (3,357 ) As of December 31, 2017 Quoted Prices in Active Markets for Significant Significant Identical Observable Unobservable Total Assets Inputs Inputs Fair (Level 1) (Level 2) (Level 3) Value Assets Investments: Fixed maturity AFS securities: Corporate bonds $ - $ 75,810 $ 5,350 $ 81,160 ABS - 927 26 953 U.S. government bonds 522 6 5 533 Foreign government bonds - 336 110 446 RMBS - 3,246 12 3,258 CMBS - 593 6 599 CLOs - 717 91 808 State and municipal bonds - 4,959 - 4,959 Hybrid and redeemable preferred securities 70 478 76 624 Equity AFS securities 28 57 161 246 Trading securities 73 1,411 49 1,533 Derivative investments (1) - 740 603 1,343 Cash and invested cash - 947 - 947 Other assets: GLB direct embedded derivatives - - 903 903 GLB ceded embedded derivatives - - 51 51 Indexed annuity ceded embedded derivatives - - 11 11 Separate account assets 814 143,405 - 144,219 Total assets $ 1,507 $ 233,632 $ 7,454 $ 242,593 Liabilities Future contract benefits – indexed annuity and IUL contracts embedded derivatives $ - $ - $ (1,418 ) $ (1,418 ) Reinsurance related embedded derivatives - (51 ) - (51 ) Other liabilities: Derivative liabilities (1) - (380 ) (573 ) (953 ) GLB ceded embedded derivatives - - (954 ) (954 ) Total liabilities $ - $ (431 ) $ (2,945 ) $ (3,376 ) (1) Derivative investment assets and liabilities presented within the fair value hierarchy are presented on a gross basis by derivative type and not on a master netting basis by counterparty. |
Fair Value Measured On A Recurring Basis Reconciliation | For the Three Months Ended March 31, 2018 Gains Issuances, Transfers Items (Losses) Sales, Into or Included in Maturities, Out Beginning in OCI Settlements, of Ending Fair Net and Calls, Level 3, Fair Value Income Other (1) Net Net (2)(3) Value Investments: (4) Fixed maturity AFS securities: Corporate bonds $ 5,350 $ 3 $ 18 $ 97 $ 17 $ 5,485 ABS 26 - - - - 26 U.S. government bonds 5 - - - - 5 Foreign government bonds 110 - (2 ) - - 108 RMBS 12 - - - (12 ) - CMBS 6 1 - 20 - 27 CLOs 91 - - 2 (91 ) 2 Hybrid and redeemable preferred securities 76 - 1 - - 77 Equity AFS securities 161 - - - (161 ) - Trading securities 49 (2 ) - - - 47 Equity securities - - - 1 26 27 Derivative investments 30 330 (25 ) (56 ) - 279 Other assets: (5) GLB direct embedded derivatives 903 207 - - - 1,110 GLB ceded embedded derivatives 51 (6 ) - - - 45 Indexed annuity ceded embedded derivatives 11 - - 6 - 17 Future contract benefits – indexed annuity and IUL contracts embedded derivatives (5) (1,418 ) 52 - 20 - (1,346 ) Other liabilities – GLB ceded embedded derivatives (5) (954 ) (201 ) - - - (1,155 ) Total, net $ 4,509 $ 384 $ (8 ) $ 90 $ (221 ) $ 4,754 For the Three Months Ended March 31, 2017 Gains Issuances, Transfers Items (Losses) Sales Into or Included in Maturities, Out Beginning in OCI Settlements, of Ending Fair Net and Calls, Level 3, Fair Value Income Other (1) Net Net (2) Value Investments: (4) Fixed maturity AFS securities: Corporate bonds $ 4,809 $ 5 $ 65 $ (200 ) $ 131 $ 4,810 ABS 33 - 1 - (6 ) 28 U.S. government bonds - - - - 5 5 Foreign government bonds 111 - (1 ) - - 110 RMBS 3 - - 4 - 7 CMBS 7 - - 41 (4 ) 44 CLOs 68 - - 5 15 88 State and municipal bonds - (1 ) - - 2 1 Hybrid and redeemable preferred securities 76 - 3 - - 79 Equity AFS securities 177 1 (1 ) 5 - 182 Trading securities 65 1 7 (16 ) 3 60 Derivative investments (93 ) (69 ) 23 251 - 112 Other assets: (5) GLB direct embedded derivatives - 226 - - - 226 GLB ceded embedded derivatives 371 (254 ) - - - 117 Future contract benefits – indexed annuity and IUL contracts embedded derivatives (5) (1,139 ) (120 ) - 21 - (1,238 ) Other liabilities: (5) GLB direct embedded derivatives (371 ) 371 - - - - GLB ceded embedded derivatives - (342 ) - - - (342 ) Total, net $ 4,117 $ (182 ) $ 97 $ 111 $ 146 $ 4,289 (1) The changes in fair value of the interest rate swaps are offset by an adjustment to derivative investments (see Note 6). (2) Transfers into or out of Level 3 for AFS and trading securities are displayed at amortized cost as of the beginning-of-year. For AFS and trading securities, the difference between beginning-of-year amortized cost and beginning-of-year fair value was included in OCI and earnings, respectively, in the prior period. (3) Transfers into or out of Level 3 for FHLB stock between equity securities and other investments at cost on our Consolidated Balance Sheets. (4) Amortization and accretion of premiums and discounts are included in net investment income on our Consolidated Statements of Comprehensive Income (Loss). Gains (losses) from sales, maturities, settlements and calls and OTTI are included in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). (5) Gains (losses) from sales, maturities, settlements and calls are included in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). |
Schedule Of Investment Holdings Movements | For the Three Months Ended March 31, 2018 Issuances Sales Maturities Settlements Calls Total Investments: Fixed maturity AFS securities: Corporate bonds $ 248 $ (57 ) $ (2 ) $ (92 ) $ - $ 97 CMBS 21 - - (1 ) - 20 CLOs 2 - - - - 2 Equity securities 1 - - - - 1 Derivative investments 67 (6 ) (117 ) - - (56 ) Other assets – indexed annuity ceded embedded derivatives 6 - - - - 6 Future contract benefits – indexed annuity and IUL contracts embedded derivatives (27 ) - - 47 - 20 Total, net $ 318 $ (63 ) $ (119 ) $ (46 ) $ - $ 90 For the Three Months Ended March 31, 2017 Issuances Sales Maturities Settlements Calls Total Investments: Fixed maturity AFS securities: Corporate bonds $ 41 $ (62 ) $ (22 ) $ (62 ) $ (95 ) $ (200 ) RMBS 4 - - - - 4 CMBS 41 - - - - 41 CLOs 5 - - - - 5 Equity AFS securities 7 (2 ) - - - 5 Trading securities 1 (17 ) - - - (16 ) Derivative investments 47 294 (90 ) - - 251 Future contract benefits – indexed annuity and IUL contracts embedded derivatives (18 ) - - 39 - 21 Total, net $ 128 $ 213 $ (112 ) $ (23 ) $ (95 ) $ 111 |
Changes In Unrealized Gains (Losses) Within Level 3 Financial Instruments Carried At Fair Value And Still Held | For the Three Months Ended March 31, 2018 2017 Derivative investments $ 281 $ (74 ) Embedded derivatives: Indexed annuity and IUL contracts (4 ) (14 ) Other assets – GLB direct and ceded 376 747 Other liabilities – GLB ceded (376 ) (747 ) Total, net (1) $ 277 $ (88 ) (1) Included in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). |
Components Of The Transfers In And Out Of Level 3 | For the Three For the Three Months Ended Months Ended March 31, 2018 March 31, 2017 Transfers Transfers Transfers Transfers Into Out of Into Out of Level 3 Level 3 Total Level 3 Level 3 Total Investments: Fixed maturity AFS securities: Corporate bonds $ 40 $ (23 ) $ 17 $ 160 $ (29 ) $ 131 ABS - - - - (6 ) (6 ) U.S. government bonds - - - 5 - 5 RMBS - (12 ) (12 ) - - - CMBS - - - - (4 ) (4 ) CLOs - (91 ) (91 ) 30 (15 ) 15 State and municipal bonds - - - 2 - 2 Equity AFS securities - (161 ) (161 ) - - - Trading securities - - - 3 - 3 Equity securities 26 - 26 - - - Total, net $ 66 $ (287 ) $ (221 ) $ 200 $ (54 ) $ 146 |
Fair Value Inputs Quantitative Information | Fair Valuation Significant Assumption or Value Technique Unobservable Inputs Input Ranges Assets Investments: Fixed maturity AFS and trading securities: Corporate bonds $ 2,570 Discounted cash flow Liquidity/duration adjustment (1) 0.5 % - 22.2 % ABS 23 Discounted cash flow Liquidity/duration adjustment (1) 3.0 % - 3.0 % Foreign government bonds 78 Discounted cash flow Liquidity/duration adjustment (1) 1.6 % - 3.1 % Hybrid and redeemable preferred securities 4 Discounted cash flow Liquidity/duration adjustment (1) 1.8 % - 1.8 % Equity securities 21 Discounted cash flow Liquidity/duration adjustment (1) 4.5 % - 5.0 % Other assets: GLB direct and ceded embedded derivatives 1,155 Discounted cash flow Long-term lapse rate (2) 1 % - 30 % Utilization of guaranteed withdrawals (3) 85 % - 100 % Claims utilization factor (4) 60 % - 100 % Premiums utilization factor (4) 80 % - 115 % NPR (5) 0.02 % - 0.30 % Mortality rate (6) (8) Volatility (7) 1 % - 29 % Indexed annuity ceded embedded derivatives 17 Discounted cash flow Lapse rate (2) 1 % - 9 % Mortality rate (6) (8) Liabilities Future contract benefits – indexed annuity and IUL contracts embedded derivatives $ (1,346 ) Discounted cash flow Lapse rate (2) 1 % - 9 % Mortality rate (6) (8) Other liabilities – GLB ceded embedded derivatives (1,155 ) Discounted cash flow Long-term lapse rate (2) 1 % - 30 % Utilization of guaranteed withdrawals (3) 85 % - 100 % Claims utilization factor (4) 60 % - 100 % Premiums utilization factor (4) 80 % - 115 % NPR (5) 0.02 % - 0.30 % Mortality rate (6) (8) Volatility (7) 1 % - 29 % (1) The liquidity /duration adjustment input represents an estimated market participant composite of adjustments attributable to liquidity premiums, expected durations, structures and credit quality that would be applied to the market observable information of an investment. (2) The lapse rate input represents the estimated probability of a contract surrendering during a year, and thereby forgoing any future benefits. The range for indexed annuity and IUL contracts represents the lapse rates during the surrender charge period. (3) The utilization of guaranteed withdrawals input represents the estimated percentage of contract holders that utilize the guaranteed withdrawal feature. (4) The utilization factors are applied to the present value of claims or premiums, as appropriate, in the GLB reserve calculation to estimate the impact of inefficient withdrawal behavior, including taking less than or more than the maximum guaranteed withdrawal. (5) The NPR input represents the estimated additional credit spread that market participants would apply to the market observable discount rate when pricing a contract. (6) The mortality rate input represents the estimated probability of when an individual belonging to a particular group, categorized according to age or some other factor such as gender, will die. (7) The volatility input represents overall volatilities assumed for the underlying variable annuity funds, which include a mixture of equity and fixed-income assets. Fair value of the variable annuity GLB embedded derivatives would increase if higher volatilities were used for valuation. (8) The mortality rate is based on a combination of company and industry experience, adjusted for improvement factors. |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Segment Information [Abstract] | |
Reconciliation Of Revenue From Segments To Consolidated | For the Three Months Ended March 31, 2018 2017 Revenues Operating revenues: Annuities $ 984 $ 978 Retirement Plan Services 288 279 Life Insurance 1,549 1,483 Group Protection 552 541 Other Operations 58 78 Excluded realized gain (loss), pre-tax (27 ) (131 ) Amortization of deferred gain arising from reserve changes on business sold through reinsurance, pre-tax - 1 Total revenues $ 3,404 $ 3,229 |
Reconciliation Of Income (Loss) From Operations By Segment To Consolidated Net Income (Loss) | For the Three Months Ended March 31, 2018 2017 Net Income (Loss) Income (loss) from operations: Annuities $ 272 $ 278 Retirement Plan Services 40 35 Life Insurance 122 114 Group Protection 29 7 Other Operations (18 ) - Excluded realized gain (loss), after-tax (22 ) (85 ) Net impact from the Tax Cuts and Jobs Act (12 ) - Acquisition and integration costs related to mergers and acquisitions, after-tax (4 ) - Net income (loss) $ 407 $ 349 |
Schedule Of Revenue From Contracts With Customers | For the Three Months Ended March 31, 2018 Retirement Plan Life Group Other Annuities Services Insurance Protection Operations Total Revenue from Contracts with Customers Fee income $ 133 $ 42 $ 5 $ - $ - $ 180 Other revenues 93 4 3 5 - 105 Total revenue from contracts with customers $ 226 $ 46 $ 8 $ 5 $ - $ 285 Timing of Revenue Recognition Satisfaction of performance obligation: Transferred at a point in time $ 2 $ 1 $ 2 $ - $ - $ 5 Transferred over time 224 45 6 5 - 280 Total revenue from contracts with customers $ 226 $ 46 $ 8 $ 5 $ - $ 285 |
Nature of Operations and Basi29
Nature of Operations and Basis of Presentation (Details) | 3 Months Ended |
Mar. 31, 2018 | |
Lincoln Life & Annuity Company of New York [Member] | |
Product Information [Line Items] | |
Ownership percent | 100.00% |
New Accounting Standards (Narra
New Accounting Standards (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
AFS Equity securities | $ 246 | ||
Equity Securities, FV-NI | $ 112 | ||
Federal rate | 21.00% | 35.00% | 35.00% |
Accounting Standards Update 2016-01 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
AFS Equity securities | $ 246 | ||
Equity Securities, FV-NI | 110 | ||
Accounting Standards Update 2016-01 [Member] | Scenario, Adjustment [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
AFS Equity securities | $ 136 | ||
Accounting Standards Update 2018-02 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Reclassification from AOCI to retained earnings | $ 644 |
Variable Interest Entities (Nar
Variable Interest Entities (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Variable Interest Entity [Line Items] | |||
Carrying Amounts of our Investments in LPs and LLCs, As Recognized In Other Investments on our Consolidated Balance Sheets | $ 1,807 | $ 2,006 | |
Maximum [Member] | |||
Variable Interest Entity [Line Items] | |||
Income Tax Credits And Other Tax Benefits From Qualified Affordable Housing Projects | 1 | $ 1 | |
Limited Partnerships and Limited Liability Companies [Member] | |||
Variable Interest Entity [Line Items] | |||
Carrying Amounts of our Investments in LPs and LLCs, As Recognized In Other Investments on our Consolidated Balance Sheets | 1,500 | 1,400 | |
Carrying Amount Of Investments In Qualified Affordable Housing Projects | $ 29 | $ 31 |
Investments (Narrative) (Detail
Investments (Narrative) (Details) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018USD ($)item | Dec. 31, 2017USD ($)item | |
Investment [Line Items] | ||
Increase (decrease) in gross AFS securities unrealized losses | $ 602 | |
Number of partnerships in alternative investment portfolio | item | 225 | 221 |
Alternative investments as a percentage of overall invested assets | 1.00% | 1.00% |
Fair value of collateral received that we are permitted to sell or re-pledge | $ 629 | |
Securities that have been re-pledged | 337 | |
Investment commitments | 1,600 | |
Investment commitments for limited partnerships | 735 | |
Investment commitments for mortgage loans on real estate | 582 | |
Investment commitments for private placements | 280 | |
Federal Home Loan Mortgage Corporation [Member] | Invested Assets [Member] | ||
Investment [Line Items] | ||
Fair value | $ 1,400 | $ 1,200 |
Concentration risk, percentage | 1.00% | 1.00% |
Fannie Mae [Member] | Invested Assets [Member] | ||
Investment [Line Items] | ||
Fair value | $ 1,200 | $ 930 |
Concentration risk, percentage | 1.00% | 1.00% |
Banking Industry [Member] | Invested Assets [Member] | ||
Investment [Line Items] | ||
Fair value | $ 14,800 | |
Concentration risk, percentage | 14.00% | |
Consumer Non-Cyclical Industry [Member] | Invested Assets [Member] | ||
Investment [Line Items] | ||
Fair value | $ 13,600 | $ 14,300 |
Concentration risk, percentage | 13.00% | 13.00% |
Utilities Industry [Member] | Invested Assets [Member] | ||
Investment [Line Items] | ||
Fair value | $ 13,800 | |
Concentration risk, percentage | 12.00% | |
Mortgage Loans On Real Estate [Member] | Geographic Concentration Risk [Member] | California [Member] | ||
Investment [Line Items] | ||
Concentration risk, percentage | 20.00% | 21.00% |
Mortgage Loans On Real Estate [Member] | Geographic Concentration Risk [Member] | Texas [Member] | ||
Investment [Line Items] | ||
Concentration risk, percentage | 12.00% | 12.00% |
Corporate Bonds [Member] | ||
Investment [Line Items] | ||
Percentage of fair value rated as investment grade | 96.00% | 96.00% |
Amortized cost of portfolio rated below investment grade | $ 3,300 | $ 3,400 |
Fair value of portfolio rated below investment grade | $ 3,200 | $ 3,400 |
ABS [Member] | ||
Investment [Line Items] | ||
Percentage of fair value rated as investment grade | 98.00% | 98.00% |
Amortized cost of portfolio rated below investment grade | $ 43 | $ 43 |
Fair value of portfolio rated below investment grade | $ 41 | $ 41 |
MBS [Member] | ||
Investment [Line Items] | ||
Projected default rate on existing delinquencies on MBS (low end of range) | 10.00% | 10.00% |
Projected default rate on existing delinquencies on MBS (high end of range) | 100.00% | 100.00% |
Severity of second lien loans | 100.00% | 100.00% |
Severity of first lien loans | 30.00% | 30.00% |
Investments (Reconciliation Of
Investments (Reconciliation Of Available-For-Sale Securities From Cost Basis To Fair Value) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 | |
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | |||
Amortized cost | $ 86,086 | $ 86,049 | |
Gross unrealized gains | 5,590 | 7,909 | |
Gross unrealized losses | 1,019 | 433 | |
OTTI | [1] | (52) | (61) |
Fair value | 90,709 | 93,586 | |
Equity AFS Securities [Member] | |||
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | |||
Amortized cost | 247 | ||
Gross unrealized gains | 16 | ||
Gross unrealized losses | 17 | ||
Fair value | 246 | ||
Fixed Maturity Securities [Member] | |||
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | |||
Amortized cost | 86,086 | 85,802 | |
Gross unrealized gains | 7,893 | ||
Gross unrealized losses | 416 | ||
OTTI | [1] | (61) | |
Fair value | 90,709 | 93,340 | |
Corporate Bonds [Member] | Fixed Maturity Securities [Member] | |||
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | |||
Amortized cost | 75,264 | 74,921 | |
Gross unrealized gains | 4,465 | 6,573 | |
Gross unrealized losses | 898 | 341 | |
OTTI | [1] | (8) | (7) |
Fair value | 78,839 | 81,160 | |
ABS [Member] | Fixed Maturity Securities [Member] | |||
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | |||
Amortized cost | 847 | 882 | |
Gross unrealized gains | 46 | 51 | |
Gross unrealized losses | 7 | 6 | |
OTTI | [1] | (15) | (26) |
Fair value | 901 | 953 | |
U.S. Government Bonds [Member] | Fixed Maturity Securities [Member] | |||
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | |||
Amortized cost | 343 | 497 | |
Gross unrealized gains | 28 | 37 | |
Gross unrealized losses | 2 | 1 | |
Fair value | 369 | 533 | |
Foreign Government Bonds [Member] | Fixed Maturity Securities [Member] | |||
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | |||
Amortized cost | 390 | 391 | |
Gross unrealized gains | 45 | 55 | |
Fair value | 435 | 446 | |
RMBS [Member] | Fixed Maturity Securities [Member] | |||
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | |||
Amortized cost | 3,090 | 3,125 | |
Gross unrealized gains | 127 | 148 | |
Gross unrealized losses | 65 | 36 | |
OTTI | [1] | (21) | (21) |
Fair value | 3,173 | 3,258 | |
CMBS [Member] | Fixed Maturity Securities [Member] | |||
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | |||
Amortized cost | 668 | 589 | |
Gross unrealized gains | 5 | 10 | |
Gross unrealized losses | 14 | 2 | |
OTTI | [1] | (3) | (2) |
Fair value | 662 | 599 | |
CLOs [Member] | Fixed Maturity Securities [Member] | |||
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | |||
Amortized cost | 872 | 803 | |
Gross unrealized gains | 1 | 2 | |
Gross unrealized losses | 3 | 2 | |
OTTI | [1] | (5) | (5) |
Fair value | 875 | 808 | |
State And Municipal Bonds [Member] | Fixed Maturity Securities [Member] | |||
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | |||
Amortized cost | 4,051 | 4,033 | |
Gross unrealized gains | 803 | 932 | |
Gross unrealized losses | 10 | 6 | |
Fair value | 4,844 | 4,959 | |
Hybrid And Redeemable Preferred Securities [Member] | Fixed Maturity Securities [Member] | |||
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | |||
Amortized cost | 561 | 561 | |
Gross unrealized gains | 70 | 85 | |
Gross unrealized losses | 20 | 22 | |
Fair value | $ 611 | $ 624 | |
[1] | Includes unrealized (gains) and losses on impaired securities related to changes in the fair value of such securities subsequent to the impairment measurement date. |
Investments (Available-For-Sale
Investments (Available-For-Sale Securities By Contractual Maturities) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Available-for-sale Securities, Debt Maturities, Amortized Cost | ||
Amortized cost | $ 86,086 | $ 86,049 |
Available-for-sale Securities, Debt Maturities, Fair Value | ||
Fair Value | 90,709 | 93,586 |
Fixed Maturity Securities [Member] | ||
Available-for-sale Securities, Debt Maturities, Amortized Cost | ||
Amortized cost | 86,086 | 85,802 |
Available-for-sale Securities, Debt Maturities, Fair Value | ||
Fair Value | 90,709 | $ 93,340 |
Fixed maturity AFS securities other than structured securities [Member] | Fixed Maturity Securities [Member] | ||
Available-for-sale Securities, Debt Maturities, Amortized Cost | ||
Due in one year or less | 3,501 | |
Due after one year through five years | 17,420 | |
Due after five years through ten years | 16,530 | |
Due after ten years | 43,158 | |
Amortized cost | 80,609 | |
Available-for-sale Securities, Debt Maturities, Fair Value | ||
Due in one year or less | 3,535 | |
Due after one year through five years | 17,740 | |
Due after five years through ten years | 16,713 | |
Due after ten years | 47,110 | |
Fair Value | 85,098 | |
Structured securities [Member] | Fixed Maturity Securities [Member] | ||
Available-for-sale Securities, Debt Maturities, Amortized Cost | ||
Amortized cost | 5,477 | |
Available-for-sale Securities, Debt Maturities, Fair Value | ||
Fair Value | $ 5,611 |
Investments (Fair Value And Gro
Investments (Fair Value And Gross Unrealized Losses In A Continuous Unrealized Loss Position) (Details) $ in Millions | Mar. 31, 2018USD ($)security | Dec. 31, 2017USD ($)security |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ||
Less Than or Equal to Twelve Months | $ 21,346 | $ 5,684 |
Greater Than Twelve Months | 5,441 | 5,820 |
Fair Value - Total | 26,787 | 11,504 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ||
Less Than or Equal to Twelve Months | 532 | 87 |
Greater Than Twelve Months | 498 | 358 |
Losses - Total | $ 1,030 | $ 445 |
Total number of AFS securities in an unrealized loss position | security | 2,156 | 1,095 |
Fixed Maturity Securities [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ||
Less Than or Equal to Twelve Months | $ 5,662 | |
Greater Than Twelve Months | 5,812 | |
Fair Value - Total | 11,474 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ||
Less Than or Equal to Twelve Months | 73 | |
Greater Than Twelve Months | 355 | |
Losses - Total | 428 | |
Equity AFS Securities [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ||
Less Than or Equal to Twelve Months | 22 | |
Greater Than Twelve Months | 8 | |
Fair Value - Total | 30 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ||
Less Than or Equal to Twelve Months | 14 | |
Greater Than Twelve Months | 3 | |
Losses - Total | 17 | |
Corporate Bonds [Member] | Fixed Maturity Securities [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ||
Less Than or Equal to Twelve Months | $ 19,380 | 4,726 |
Greater Than Twelve Months | 4,371 | 4,706 |
Fair Value - Total | 23,751 | 9,432 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ||
Less Than or Equal to Twelve Months | 496 | 67 |
Greater Than Twelve Months | 405 | 276 |
Losses - Total | 901 | 343 |
ABS [Member] | Fixed Maturity Securities [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ||
Less Than or Equal to Twelve Months | 101 | 56 |
Greater Than Twelve Months | 134 | 143 |
Fair Value - Total | 235 | 199 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ||
Less Than or Equal to Twelve Months | 2 | |
Greater Than Twelve Months | 13 | 15 |
Losses - Total | 15 | 15 |
U.S. Government Bonds [Member] | Fixed Maturity Securities [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ||
Less Than or Equal to Twelve Months | 100 | 156 |
Greater Than Twelve Months | 18 | 19 |
Fair Value - Total | 118 | 175 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ||
Less Than or Equal to Twelve Months | 1 | |
Greater Than Twelve Months | 1 | 1 |
Losses - Total | 2 | 1 |
RMBS [Member] | Fixed Maturity Securities [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ||
Less Than or Equal to Twelve Months | 638 | 277 |
Greater Than Twelve Months | 566 | 599 |
Fair Value - Total | 1,204 | 876 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ||
Less Than or Equal to Twelve Months | 17 | 4 |
Greater Than Twelve Months | 48 | 33 |
Losses - Total | 65 | 37 |
CMBS [Member] | Fixed Maturity Securities [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ||
Less Than or Equal to Twelve Months | 450 | 113 |
Greater Than Twelve Months | 59 | 60 |
Fair Value - Total | 509 | 173 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ||
Less Than or Equal to Twelve Months | 10 | |
Greater Than Twelve Months | 4 | 3 |
Losses - Total | 14 | 3 |
CLOs [Member] | Fixed Maturity Securities [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ||
Less Than or Equal to Twelve Months | 547 | 281 |
Greater Than Twelve Months | 75 | 72 |
Fair Value - Total | 622 | 353 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ||
Less Than or Equal to Twelve Months | 3 | 2 |
Losses - Total | 3 | 2 |
State And Municipal Bonds [Member] | Fixed Maturity Securities [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ||
Less Than or Equal to Twelve Months | 94 | 33 |
Greater Than Twelve Months | 95 | 89 |
Fair Value - Total | 189 | 122 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ||
Less Than or Equal to Twelve Months | 2 | |
Greater Than Twelve Months | 8 | 5 |
Losses - Total | 10 | 5 |
Hybrid And Redeemable Preferred Securities [Member] | Fixed Maturity Securities [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ||
Less Than or Equal to Twelve Months | 36 | 20 |
Greater Than Twelve Months | 123 | 124 |
Fair Value - Total | 159 | 144 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ||
Less Than or Equal to Twelve Months | 1 | |
Greater Than Twelve Months | 19 | 22 |
Losses - Total | $ 20 | $ 22 |
Investments (Schedule Of Availa
Investments (Schedule Of Available-For-Sale Securities Whose Value Is Below Amortized Cost) (Details) $ in Millions | Mar. 31, 2018USD ($)security | Dec. 31, 2017USD ($)security | |
Schedule of Available-for-sale Securities [Line Items] | |||
Fair Value - Nine months or greater, but less than twelve months | $ 21,346 | $ 5,684 | |
Fair Value - Twelve months or greater | 5,441 | 5,820 | |
Fair Value - Total | 26,787 | 11,504 | |
Losses - Nine months or greater, but less than twelve months | 532 | 87 | |
Losses - Twelve months or greater | 498 | 358 | |
Losses - Total | $ 1,030 | $ 445 | |
Number of Securities - Total | security | 2,156 | 1,095 | |
Fair Value Decline, Greater Than 20% [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Fair Value - Less than six months | $ 102 | $ 156 | |
Fair Value - Six months or greater, but less than nine months | 17 | 2 | |
Fair Value - Nine months or greater, but less than twelve months | 12 | ||
Fair Value - Twelve months or greater | 174 | 209 | |
Fair Value - Total | 293 | 379 | |
Losses - Less than six months | 33 | 57 | |
Losses - Six months or greater, but less than nine months | 8 | 1 | |
Losses - Nine months or greater, but less than twelve months | 6 | ||
Losses - Twelve months or greater | 60 | 77 | |
Losses - Total | 101 | 141 | |
OTTI - Less than six months | 2 | 1 | |
OTTI - Twelve months or greater | 8 | 10 | |
OTTI - Total | $ 10 | $ 11 | |
Number of Securities - Less than six months | security | [1] | 18 | 26 |
Number of Securities - Six months or greater, but less than nine months | security | [1] | 4 | 4 |
Number of Securities - Nine months or greater, but less than twelve months | security | [1] | 3 | 7 |
Number of Securities - Twelve months or greater | security | [1] | 30 | 49 |
Number of Securities - Total | security | [1] | 55 | 86 |
[1] | We may reflect a security in more than one aging category based on various purchase dates. |
Investments (Schedule Of Change
Investments (Schedule Of Changes in Amount Of Credit Losses Of OTTI Recognized In Net Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Investments [Abstract] | ||
Balance as of beginning-of-year | $ 358 | $ 411 |
Increases attributable to: | ||
Credit losses on securities for which an OTTI was not previously recognized | 2 | 1 |
Credit losses on securities for which an OTTI was previously recognized | 3 | |
Decreases attributable to: | ||
Securities sold, paid down or matured | (1) | (41) |
Balance as of end-of-year | $ 359 | $ 374 |
Investments (Composition Of Cur
Investments (Composition Of Current And Past Due Mortgage Loans On Real Estate) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Mortgage Loans On Real Estate Aging [Abstract] | ||||
Current | $ 10,954 | $ 10,662 | ||
60 to 90 days past due | ||||
Greater than 90 days past due | 3 | 3 | ||
Valuation allowance associated with impaired mortgage loans on real estate | (3) | (3) | $ (2) | $ (2) |
Unamortized premium (discount) | ||||
Total carrying value | $ 10,954 | $ 10,662 |
Investments (Schedule Of Impair
Investments (Schedule Of Impaired Mortgage Loans) (Details) $ in Millions | Mar. 31, 2018USD ($)item | Dec. 31, 2017USD ($)item | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
Information about impaired mortgage loans on real estate | ||||
Number of impaired mortgage loans on real estate | item | 3 | 3 | ||
Principal balance of impaired mortgage loans on real estate | $ 11 | $ 11 | ||
Valuation allowance associated with impaired mortgage loans on real estate | (3) | (3) | $ (2) | $ (2) |
Carrying value of impaired mortgage loans on real estate | $ 8 | $ 8 |
Investments (Changes In The Val
Investments (Changes In The Valuation Allowance Of Impaired Mortgage Loans On Real Estate (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Allowance for Losses | ||
Balance as of beginning-of-year | $ 3 | $ 2 |
Additions | ||
Charge-offs, net of recoveries | ||
Balance as of end-of-year | $ 3 | $ 2 |
Investments (Schedule Of Averag
Investments (Schedule Of Average Carrying Value Of Impaired Mortgage Loans On Real Estate) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Information about impaired mortgage loans on real estate | ||
Average carrying value for impaired mortgage loans on real estate | $ 8 | $ 5 |
Interest income recognized on impaired mortgage loans on real estate | ||
Interest income collected on impaired mortgage loans on real estate |
Investments (Credit Quality Ind
Investments (Credit Quality Indicators For Mortgage Loans) (Details) $ in Millions | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Mortgage Loans Credit Quality [Line Items] | ||
Carrying value of mortgage loans on real estate | $ 10,954 | $ 10,662 |
Percentage of total mortgage loans on real estate | 100.00% | 100.00% |
Loan-to-value ratio, less than 65% [Member] | ||
Mortgage Loans Credit Quality [Line Items] | ||
Carrying value of mortgage loans on real estate | $ 9,865 | $ 9,563 |
Percentage of total mortgage loans on real estate | 90.00% | 89.70% |
Debt-service coverage ratio | 2.27 | 2.27 |
Loan-to-value ratio, 65% to 74% [Member] | ||
Mortgage Loans Credit Quality [Line Items] | ||
Carrying value of mortgage loans on real estate | $ 995 | $ 1,000 |
Percentage of total mortgage loans on real estate | 9.10% | 9.40% |
Debt-service coverage ratio | 1.93 | 1.94 |
Loan-to-value ratio, 75% to 100% [Member] | ||
Mortgage Loans Credit Quality [Line Items] | ||
Carrying value of mortgage loans on real estate | $ 86 | $ 91 |
Percentage of total mortgage loans on real estate | 0.80% | 0.80% |
Debt-service coverage ratio | 0.98 | 0.97 |
Loan-To-Value Ratio, Greater Than 100% [Member] | ||
Mortgage Loans Credit Quality [Line Items] | ||
Carrying value of mortgage loans on real estate | $ 8 | $ 8 |
Percentage of total mortgage loans on real estate | 0.10% | 0.10% |
Debt-service coverage ratio | 0.82 | 0.82 |
Investments (Realized Gain (Los
Investments (Realized Gain (Loss) Related To Certain Investments) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Realized gain (loss) related to certain investments | |||
Gain (loss) on other investments | [1] | $ (1) | $ (4) |
Associated amortization of DAC, VOBA, DSI and DFEL and changes in other contract holder funds | (5) | (7) | |
Total realized gain (loss) related to certain investments, pre-tax | [2] | (25) | (14) |
Fixed Maturity Securities [Member] | |||
Realized gain (loss) related to certain investments | |||
AFS securities. Gross gains | [3] | 13 | 8 |
AFS securities. Gross losses | [3] | (32) | (12) |
Equity AFS Securities [Member] | |||
Realized gain (loss) related to certain investments | |||
AFS securities. Gross gains | 1 | ||
AFS securities. Gross losses | |||
Equity Securities [Member] | Maximum [Member] | |||
Realized gain (loss) related to certain investments | |||
Gain (loss) on other investments | $ 1 | ||
[1] | Includes market adjustments on equity securities still held as of March 31, 2018 of less than $1 million. | ||
[2] | See "Realized Gain (Loss) Related to Certain Investments" section in Note 5. | ||
[3] | These amounts are represented net of related fair value hedging activity. See Note 6 for more information. |
Investments (OTTI Recognized In
Investments (OTTI Recognized In Net Income (Loss) And OCI) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
OTTI Recognized in Net Income (Loss) | ||
Associated amortization of DAC, VOBA, DSI and DFEL | ||
Net OTTI recognized in net income (loss), pre-tax | (2) | (4) |
Portion of OTTI Recognized in OCI | ||
Gross OTTI recognized in OCI | ||
Net portion of OTTI recognized in OCI, pre-tax | ||
Net portion of OTTI recognized in OCI, pre-tax | ||
Fixed Maturity Securities [Member] | ||
OTTI Recognized in Net Income (Loss) | ||
Gross OTTI recognized in net income (loss) | (2) | (4) |
Fixed Maturity Securities [Member] | Corporate Bonds [Member] | ||
OTTI Recognized in Net Income (Loss) | ||
Gross OTTI recognized in net income (loss) | $ (2) | (2) |
Fixed Maturity Securities [Member] | ABS [Member] | ||
OTTI Recognized in Net Income (Loss) | ||
Gross OTTI recognized in net income (loss) | (1) | |
Fixed Maturity Securities [Member] | RMBS [Member] | ||
OTTI Recognized in Net Income (Loss) | ||
Gross OTTI recognized in net income (loss) | $ (1) |
Investments (Payables For Colla
Investments (Payables For Collateral On Investments) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Dec. 31, 2017 | ||
Carrying Value Of Payables For Collateral On Investments [Abstract] | |||
Collateral payable for derivative investments | [1] | $ 587 | $ 701 |
Securities pledged under securities lending agreements | [2] | 154 | 222 |
Securities pledged under repurchase agreements | [3] | 531 | 531 |
Investments pledged for Federal Home Loan Bank of Indianapolis ('FHLBI') | [4] | 2,900 | 2,900 |
Total payables for collateral on investments | 4,172 | 4,354 | |
Fair Value Of Related Investments Or Collateral [Abstract] | |||
Collateral payable for derivative investments | [1] | 587 | 701 |
Securities pledged under securities lending agreements | [2] | 149 | 213 |
Securities pledged under repurchase agreements | [3] | 557 | 554 |
Investments pledged for Federal Home Loan Bank of Indianapolis('FHLBI') | [4] | 4,206 | 4,235 |
Total payables for collateral on investments | $ 5,499 | $ 5,703 | |
Percentage of the fair value of domestic securities obtained as collateral under securities lending agreements. | 102.00% | ||
Percentage of the fair value of foreign securities obtained as collateral under securities lending agreements. | 105.00% | ||
Percentage of the fair value of securities obtained as collateral under reverse repurchase agreements. | 95.00% | ||
Maximum [Member] | |||
Fair Value Of Related Investments Or Collateral [Abstract] | |||
Percentage of the fair value of FHLBI securities obtained as collateral under securities pledged for FHLBI for AFS Securities | 115.00% | ||
Percentage of the fair value of FHLBI securities obtained as collateral under securities pledged for FHLBI for mortgage loan | 175.00% | ||
Minimum [Member] | |||
Fair Value Of Related Investments Or Collateral [Abstract] | |||
Percentage of the fair value of FHLBI securities obtained as collateral under securities pledged for FHLBI for AFS Securities | 105.00% | ||
Percentage of the fair value of FHLBI securities obtained as collateral under securities pledged for FHLBI for mortgage loan | 155.00% | ||
[1] | We obtain collateral based upon contractual provisions with our counterparties. These agreements take into consideration the counterparties' credit rating as compared to ours, the fair value of the derivative investments and specified thresholds that if exceeded result in the receipt of cash that is typically invested in cash and invested cash. See Note 6 for additional information. | ||
[2] | Our pledged securities under securities lending agreements are included in fixed maturity AFS securities on our Consolidated Balance Sheets. We generally obtain collateral in an amount equal to 102% and 105% of the fair value of the domestic and foreign securities, respectively. We value collateral daily and obtain additional collateral when deemed appropriate. The cash received in our securities lending program is typically invested in cash and invested cash or fixed maturity AFS securities. | ||
[3] | Our pledged securities under repurchase agreements are included in fixed maturity AFS securities on our Consolidated Balance Sheets. We obtain collateral in an amount equal to 95% of the fair value of the securities, and our agreements with third parties contain contractual provisions to allow for additional collateral to be obtained when necessary. The cash received in our repurchase program is typically invested in fixed maturity AFS securities. | ||
[4] | Our pledged investments for FHLBI are included in fixed maturity AFS securities and mortgage loans on real estate on our Consolidated Balance Sheets. The collateral requirements are generally 105% to 115% of the fair value for fixed maturity AFS securities and 155% to 175% of the fair value for mortgage loans on real estate. The cash received in these transactions is primarily invested in cash and invested cash or fixed maturity AFS securities. |
Investments (Schedule Of Increa
Investments (Schedule Of Increase (Decrease) In Payables For Collateral On Investments) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Increase (decrease) in payables for collateral on investments | ||
Collateral payable for derivative investments | $ (114) | $ 36 |
Securities pledged under securities lending agreements | (68) | (90) |
Securities pledged under repurchase agreements | 1 | |
Investments pledged for FHLBI | 150 | |
Total increase (decrease) in payables for collateral on investments | $ (182) | $ 97 |
Investments (Schedule of Securi
Investments (Schedule of Securities Pledged by Contractual Maturity) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Repurchase Agreements | $ 531 | $ 531 | |
Securities Lending | [1] | 154 | 222 |
Total gross secured borrowings | 685 | 753 | |
Corporate Bonds [Member] | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Repurchase Agreements | 531 | 531 | |
Securities Lending | 154 | 222 | |
Overnight and Continuous [Member] | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Securities Lending | 154 | 222 | |
Total gross secured borrowings | 154 | 222 | |
Overnight and Continuous [Member] | Corporate Bonds [Member] | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Securities Lending | 154 | 222 | |
Up to 30 days [Member] | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Repurchase Agreements | 100 | 100 | |
Total gross secured borrowings | 100 | 100 | |
Up to 30 days [Member] | Corporate Bonds [Member] | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Repurchase Agreements | 100 | 100 | |
30 to 90 Days [Member] | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Repurchase Agreements | 281 | 281 | |
Total gross secured borrowings | 281 | 281 | |
30 to 90 Days [Member] | Corporate Bonds [Member] | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Repurchase Agreements | 281 | 281 | |
Greater than 90 days [Member] | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Repurchase Agreements | 150 | 150 | |
Total gross secured borrowings | 150 | 150 | |
Greater than 90 days [Member] | Corporate Bonds [Member] | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Repurchase Agreements | $ 150 | $ 150 | |
[1] | Our pledged securities under securities lending agreements are included in fixed maturity AFS securities on our Consolidated Balance Sheets. We generally obtain collateral in an amount equal to 102% and 105% of the fair value of the domestic and foreign securities, respectively. We value collateral daily and obtain additional collateral when deemed appropriate. The cash received in our securities lending program is typically invested in cash and invested cash or fixed maturity AFS securities. |
Derivative Instruments (Narrati
Derivative Instruments (Narrative) (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | $ 28,000,000 | ||
Cash flow hedge, reclassified to earnings, net | 0 | $ 0 | |
Exposure Associated With Collateralization Events | 0 | $ 0 | |
Maximum [Member] | |||
Non-performance Risk Adjustment | $ 1,000,000 |
Derivative Instruments (Outstan
Derivative Instruments (Outstanding Derivative Instruments With Off-Balance-Sheet Risks) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 | |
Outstanding derivative instruments with off-balance-sheet risks | |||
Notional Amounts | $ 134,469 | ||
Interest rate contracts [Member] | |||
Outstanding derivative instruments with off-balance-sheet risks | |||
Notional Amounts | [1] | 102,052 | |
Foreign currency contracts [Member] | |||
Outstanding derivative instruments with off-balance-sheet risks | |||
Notional Amounts | [2] | 2,001 | |
Equity market contracts [Member] | |||
Outstanding derivative instruments with off-balance-sheet risks | |||
Notional Amounts | 30,416 | ||
GLB Direct Embedded Derivatives [Member] | Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments [Member] | |||
Outstanding derivative instruments with off-balance-sheet risks | |||
Asset Fair Value | [3] | 1,110 | $ 903 |
GLB Ceded Embedded Derivatives [Member] | Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments [Member] | |||
Outstanding derivative instruments with off-balance-sheet risks | |||
Asset Fair Value | [3],[4] | 45 | 51 |
Liability Fair Value | [3],[4] | 1,155 | 954 |
Embedded derivatives - Reinsurance related [Member] | Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments [Member] | |||
Outstanding derivative instruments with off-balance-sheet risks | |||
Asset Fair Value | [5] | 58 | |
Liability Fair Value | [5] | 51 | |
Total Derivative Instruments [Member] | |||
Outstanding derivative instruments with off-balance-sheet risks | |||
Notional Amounts | 134,469 | 107,840 | |
Asset Fair Value | 2,452 | 2,308 | |
Liability Fair Value | 3,357 | 3,376 | |
Derivative investments [Member] | Interest rate contracts [Member] | Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments [Member] | |||
Outstanding derivative instruments with off-balance-sheet risks | |||
Notional Amounts | [6] | 99,814 | 72,937 |
Asset Fair Value | [6] | 498 | 657 |
Liability Fair Value | [6] | 164 | 127 |
Derivative investments [Member] | Foreign currency contracts [Member] | Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments [Member] | |||
Outstanding derivative instruments with off-balance-sheet risks | |||
Notional Amounts | [6] | 114 | 22 |
Derivative investments [Member] | Equity market contracts [Member] | Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments [Member] | |||
Outstanding derivative instruments with off-balance-sheet risks | |||
Notional Amounts | [6] | 30,416 | 30,918 |
Asset Fair Value | [6] | 656 | 562 |
Liability Fair Value | [6] | 374 | 557 |
Derivative investments [Member] | Credit contracts [Member] | Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments [Member] | |||
Outstanding derivative instruments with off-balance-sheet risks | |||
Notional Amounts | [6] | 52 | |
Derivative investments [Member] | Cash Flow Hedges [Member] | Designated as Hedging Instrument [Member] | |||
Outstanding derivative instruments with off-balance-sheet risks | |||
Notional Amounts | 3,561 | 3,348 | |
Asset Fair Value | 68 | 124 | |
Liability Fair Value | 176 | 95 | |
Derivative investments [Member] | Cash Flow Hedges [Member] | Interest rate contracts [Member] | Designated as Hedging Instrument [Member] | |||
Outstanding derivative instruments with off-balance-sheet risks | |||
Notional Amounts | [6] | 1,674 | 1,544 |
Asset Fair Value | [6] | 21 | 45 |
Liability Fair Value | [6] | 37 | 16 |
Derivative investments [Member] | Cash Flow Hedges [Member] | Foreign currency contracts [Member] | Designated as Hedging Instrument [Member] | |||
Outstanding derivative instruments with off-balance-sheet risks | |||
Notional Amounts | [6] | 1,887 | 1,804 |
Asset Fair Value | [6] | 47 | 79 |
Liability Fair Value | [6] | 139 | 79 |
Derivative investments [Member] | Fair Value Hedges [Member] | Interest rate contracts [Member] | Designated as Hedging Instrument [Member] | |||
Outstanding derivative instruments with off-balance-sheet risks | |||
Notional Amounts | [6] | 564 | 563 |
Liability Fair Value | [6] | 142 | 174 |
Future Contract Benefits [Member] | Indexed Annuity And IUL Contracts [Member] | Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments [Member] | |||
Outstanding derivative instruments with off-balance-sheet risks | |||
Asset Fair Value | [3],[7] | 17 | 11 |
Liability Fair Value | [3],[7] | $ 1,346 | $ 1,418 |
[1] | As of March 31, 2018, the latest maturity date for which we were hedging our exposure to the variability in future cash flows for these instruments was November 2019. | ||
[2] | As of March 31, 2018, the latest maturity date for which we were hedging our exposure to the variability in future cash flows for these instruments was September 2049. | ||
[3] | Reported in other assets on our Consolidated Balance Sheets. | ||
[4] | Reported in other liabilities on our Consolidated Balance Sheets. | ||
[5] | Reported in reinsurance related embedded derivatives on our Consolidated Balance Sheets. | ||
[6] | Reported in derivative investments and other liabilities on our Consolidated Balance Sheets. | ||
[7] | Reported in future contract benefits on our Consolidated Balance Sheets. |
Derivative Instruments (Maturit
Derivative Instruments (Maturity Of The Notional Amounts Of Derivative Financial Instruments) (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2018USD ($) | ||
Maturity of the notional amounts of derivative financial instruments | ||
Remaining Life Less Than 1 Year | $ 44,173 | |
Remaining Life - 1 - 5 Years | 22,313 | |
Remaining Life - 6 - 10 Years | 46,750 | |
Remaining Life - 11 - 30 Years | 18,559 | |
Remaining Life Over - 30 Years | 2,674 | |
Remaining Life - Total Years | 134,469 | |
Interest rate contracts [Member] | ||
Maturity of the notional amounts of derivative financial instruments | ||
Remaining Life Less Than 1 Year | 25,136 | [1] |
Remaining Life - 1 - 5 Years | 13,592 | [1] |
Remaining Life - 6 - 10 Years | 45,940 | [1] |
Remaining Life - 11 - 30 Years | 17,384 | [1] |
Remaining Life - Total Years | $ 102,052 | [1] |
Derivative maturity date | Nov. 1, 2019 | |
Foreign currency contracts [Member] | ||
Maturity of the notional amounts of derivative financial instruments | ||
Remaining Life Less Than 1 Year | $ 114 | [2] |
Remaining Life - 1 - 5 Years | 290 | [2] |
Remaining Life - 6 - 10 Years | 426 | [2] |
Remaining Life - 11 - 30 Years | 1,161 | [2] |
Remaining Life Over - 30 Years | 10 | [2] |
Remaining Life - Total Years | $ 2,001 | [2] |
Derivative maturity date | Sep. 1, 2049 | |
Equity market contracts [Member] | ||
Maturity of the notional amounts of derivative financial instruments | ||
Remaining Life Less Than 1 Year | $ 18,923 | |
Remaining Life - 1 - 5 Years | 8,431 | |
Remaining Life - 6 - 10 Years | 384 | |
Remaining Life - 11 - 30 Years | 14 | |
Remaining Life Over - 30 Years | 2,664 | |
Remaining Life - Total Years | $ 30,416 | |
[1] | As of March 31, 2018, the latest maturity date for which we were hedging our exposure to the variability in future cash flows for these instruments was November 2019. | |
[2] | As of March 31, 2018, the latest maturity date for which we were hedging our exposure to the variability in future cash flows for these instruments was September 2049. |
Derivative Instruments (Change
Derivative Instruments (Change In Our Unrealized Gain On Derivative Instruments In Accumulated OCI) (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | ||
Change in our unrealized gain on derivative instruments in accumulated OCI | ||||
Balance as of beginning-of-year | $ 3,327 | |||
Income tax expense (benefit) | 76 | $ (1) | ||
Balance as of end-of-period | 2,357 | |||
Unrealized Gain (Loss) on Derivative Instruments [Member] | ||||
Change in our unrealized gain on derivative instruments in accumulated OCI | ||||
Balance as of beginning-of-year | 27 | 93 | ||
Cumulative effect from adoption of new accounting standards | 6 | $ 6 | ||
Change in foreign currency exchange rate adjustment | (50) | (20) | ||
Change in DAC, VOBA, DSI and DFEL | 4 | (4) | ||
Income tax benefit (expense) | 28 | 7 | ||
Reclassification adjustment for gains (losses) included in net income (loss) | 6 | 11 | ||
Associated amortization of DAC, VOBA, DSI and DFEL | (1) | (2) | ||
Income tax expense (benefit) | (1) | (3) | ||
Balance as of end-of-period | (72) | 73 | ||
Unrealized Gain (Loss) on Derivative Instruments [Member] | Cash Flow Hedges [Member] | Interest rate contracts [Member] | ||||
Change in our unrealized gain on derivative instruments in accumulated OCI | ||||
Unrealized holding gains (losses) arising during the period | (46) | (8) | ||
Unrealized Gain (Loss) on Derivative Instruments [Member] | Cash Flow Hedges [Member] | Interest rate contracts [Member] | Net Investment Income [Member] | ||||
Change in our unrealized gain on derivative instruments in accumulated OCI | ||||
Transfers from derivative instruments to bonds through basis adjustment | [1] | 1 | 2 | |
Unrealized Gain (Loss) on Derivative Instruments [Member] | Cash Flow Hedges [Member] | Foreign currency contracts [Member] | ||||
Change in our unrealized gain on derivative instruments in accumulated OCI | ||||
Unrealized holding gains (losses) arising during the period | (37) | 11 | ||
Unrealized Gain (Loss) on Derivative Instruments [Member] | Cash Flow Hedges [Member] | Foreign currency contracts [Member] | Net Investment Income [Member] | ||||
Change in our unrealized gain on derivative instruments in accumulated OCI | ||||
Transfers from derivative instruments to bonds through basis adjustment | [1] | $ 5 | 4 | |
Unrealized Gain (Loss) on Derivative Instruments [Member] | Cash Flow Hedges [Member] | Foreign currency contracts [Member] | Realized Gain (Loss) [Member] | ||||
Change in our unrealized gain on derivative instruments in accumulated OCI | ||||
Transfers from derivative instruments to bonds through basis adjustment | [2] | $ 5 | ||
[1] | The OCI offset is reported within net investment income on our Consolidated Statements of Comprehensive Income (Loss). | |||
[2] | The OCI offset is reported within realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). |
Derivative Instruments (Gains (
Derivative Instruments (Gains (Losses) On Derivative Instruments Recorded Within Income (Loss) From Continuing Operations) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Gains (losses) | |||
Gains (losses) | $ (93) | $ (693) | |
Designated as Hedging Instrument [Member] | Cash Flow Hedges [Member] | |||
Gains (losses) | |||
Gains (losses) | 6 | 11 | |
Designated as Hedging Instrument [Member] | Fair Value Hedges [Member] | |||
Gains (losses) | |||
Gains (losses) | 29 | 1 | |
Designated as Hedging Instrument [Member] | Net Investment Income [Member] | Cash Flow Hedges [Member] | Interest rate contracts [Member] | |||
Gains (losses) | |||
Gains (losses) | [1] | 1 | 2 |
Designated as Hedging Instrument [Member] | Net Investment Income [Member] | Cash Flow Hedges [Member] | Foreign currency contracts [Member] | |||
Gains (losses) | |||
Gains (losses) | 5 | 4 | |
Designated as Hedging Instrument [Member] | Net Investment Income [Member] | Fair Value Hedges [Member] | Interest rate contracts [Member] | |||
Gains (losses) | |||
Gains (losses) | [1] | (4) | (7) |
Designated as Hedging Instrument [Member] | Realized Gain (Loss) [Member] | Cash Flow Hedges [Member] | Foreign currency contracts [Member] | |||
Gains (losses) | |||
Gains (losses) | [2] | 5 | |
Designated as Hedging Instrument [Member] | Realized Gain (Loss) [Member] | Fair Value Hedges [Member] | Interest rate contracts [Member] | |||
Gains (losses) | |||
Gains (losses) | [2] | 33 | 8 |
Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments [Member] | Realized Gain (Loss) [Member] | Interest rate contracts [Member] | |||
Gains (losses) | |||
Gains (losses) | [2] | (312) | (50) |
Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments [Member] | Realized Gain (Loss) [Member] | Foreign currency contracts [Member] | |||
Gains (losses) | |||
Gains (losses) | [2] | 2 | 3 |
Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments [Member] | Realized Gain (Loss) [Member] | Equity market contracts [Member] | |||
Gains (losses) | |||
Gains (losses) | [2] | 7 | (526) |
Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments [Member] | Realized Gain (Loss) [Member] | Embedded derivatives - Reinsurance related [Member] | |||
Gains (losses) | |||
Gains (losses) | [2] | 125 | (21) |
Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments [Member] | Realized Gain (Loss) [Member] | Indexed Annuity And IUL Contracts [Member] | |||
Gains (losses) | |||
Gains (losses) | [2] | 52 | (120) |
Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments [Member] | Commissions And Other Expenses [Member] | Equity market contracts [Member] | |||
Gains (losses) | |||
Gains (losses) | [3] | $ (2) | $ 9 |
[1] | Reported in net investment income on our Consolidated Statements of Comprehensive Income (Loss). | ||
[2] | Reported in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). | ||
[3] | Reported in commissions and other expenses on our Consolidated Statements of Comprehensive Income (Loss). |
Derivative Instruments (Gains53
Derivative Instruments (Gains (Losses) On Derivative Instruments Designated As Cash Flow Hedges) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Gains (losses) on derivative instruments designated and qualifying as cash flow hedges | ||
Offset to net investment income | $ 1,176 | $ 1,176 |
Offset to realized gain (loss) | 22 | (89) |
Designated as Hedging Instrument [Member] | Cash Flow Hedges [Member] | Other Comprehensive Income (Loss) [Member] | ||
Gains (losses) on derivative instruments designated and qualifying as cash flow hedges | ||
Offset to net investment income | $ 6 | 6 |
Offset to realized gain (loss) | $ 5 |
Derivative Instruments (Open Cr
Derivative Instruments (Open Credit Default Swap Liabilities) (Details) - Open Credit Default Swap Liabilities [Member] $ in Millions | 12 Months Ended | |
Dec. 31, 2017USD ($)item | ||
Summary Of Credit Derivatives | ||
Number of instruments | item | 1 | |
Fair value | $ 1 | [1] |
Maximum potential payout | $ 52 | |
12/20/2022 Maturity [Member] | ||
Summary Of Credit Derivatives | ||
Credit rating of underlying obligation | BBB+ | [2] |
Number of instruments | item | 1 | |
Fair value | $ 1 | [1] |
Maximum potential payout | $ 52 | |
[1] | Broker quotes are used to determine the market value of our credit default swaps. | |
[2] | Represents average credit ratings based on the midpoint of the applicable ratings among Moody’s, S&P and Fitch Ratings, as scaled to the corresponding S&P ratings. |
Derivative Instruments (Collate
Derivative Instruments (Collateral Support Agreements) (Details) - Open Credit Default Swap Liabilities [Member] - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Credit risk related contingent features collateral | ||
Maximum potential payout | $ 52 | |
Less: Counterparty thresholds | ||
Maximum collateral potentially required to post | $ 52 |
Derivative Instruments (Schedul
Derivative Instruments (Schedule Of Collateral Amounts With Rights To Reclaim Or Obligation To Return Cash) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Credit Derivatives [Line Items] | ||
Collateral Posted by Counter-Party (Held by LNL) | $ 586 | $ 701 |
Collateral Posted by LNL (Held by Counter-Party) | (122) | (506) |
AA- [Member] | ||
Credit Derivatives [Line Items] | ||
Collateral Posted by Counter-Party (Held by LNL) | 79 | 116 |
Collateral Posted by LNL (Held by Counter-Party) | (4) | (1) |
A+ [Member] | ||
Credit Derivatives [Line Items] | ||
Collateral Posted by Counter-Party (Held by LNL) | 103 | 178 |
Collateral Posted by LNL (Held by Counter-Party) | (104) | (453) |
A [Member] | ||
Credit Derivatives [Line Items] | ||
Collateral Posted by Counter-Party (Held by LNL) | 185 | 170 |
Collateral Posted by LNL (Held by Counter-Party) | (3) | (48) |
A- [Member] | ||
Credit Derivatives [Line Items] | ||
Collateral Posted by Counter-Party (Held by LNL) | 219 | 237 |
Collateral Posted by LNL (Held by Counter-Party) | ||
BBB+ [Member] | ||
Credit Derivatives [Line Items] | ||
Collateral Posted by Counter-Party (Held by LNL) | ||
Collateral Posted by LNL (Held by Counter-Party) | $ (11) | $ (4) |
Derivative Instruments (Sched57
Derivative Instruments (Schedule Of Offsetting Assets And Liabilities) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Financial Assets | ||
Derivative Instruments, Gross amount of recognized assets | $ 976 | $ 1,082 |
Derivative Instruments, Gross amounts offset | (251) | (237) |
Derivative Instruments, Net amount of assets | 725 | 845 |
Derivative Instruments, Cash collateral | (586) | (701) |
Derivative Instruments, Non-cash collateral | (80) | |
Derivative Instruments, Net amount | 59 | 144 |
Embedded Derivative Instruments, Gross amount of recognized assets | 1,230 | 965 |
Embedded Derivative Instruments, Gross amounts offset | ||
Embedded Derivative Instruments, Net amount of assets | 1,230 | 965 |
Embedded Derivative Instruments, Cash collateral | ||
Embedded Derivative Instruments, Non-cash collateral | ||
Embedded Derivative Instruments, Net amount | 1,230 | 965 |
Total, Gross amount of recognized assets | 2,206 | 2,047 |
Total, Gross amounts offset | (251) | (237) |
Total, Net amount of assets | 1,955 | 1,810 |
Total, Cash collateral | (586) | (701) |
Total, Non-cash collateral | (80) | |
Total, Net amount | 1,289 | 1,109 |
Financial Liabilities | ||
Derivative Instruments, Gross amount of recognized liabilities | 728 | 1,037 |
Derivative Instruments, Gross amounts offset | (247) | (261) |
Derivative Instruments, Net amount of liabilities | 481 | 776 |
Derivative Instruments, Cash collateral | (122) | (506) |
Derivative Instruments, Non-cash collateral | (205) | |
Derivative Instruments, Net amount | 154 | 270 |
Embedded Derivative Instruments, Gross amount of recognized liabilities | 2,501 | 2,423 |
Embedded Derivative Instruments, Gross amounts offset | ||
Embedded Derivative Instruments, Net amount of liabilities | 2,501 | 2,423 |
Embedded Derivative Instruments, Cash collateral | ||
Embedded Derivative Instruments, Non-cash collateral | ||
Embedded Derivative Instruments, Net amount | 2,501 | 2,423 |
Total, Gross amount of recognized liabilities | 3,229 | 3,460 |
Total, Gross amounts offset | (247) | (261) |
Total, Net amount of liabilities | 2,982 | 3,199 |
Total, Cash collateral | (122) | |
Total, Non-cash collateral | (205) | (506) |
Total, Net amount | $ 2,655 | $ 2,693 |
Federal Income Taxes (Narrative
Federal Income Taxes (Narrative) (Details) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Federal Income Taxes [Abstract] | |||
Effective tax rate | 16.00% | 0.00% | |
Federal rate | 21.00% | 35.00% | 35.00% |
Guaranteed Benefit Features (Na
Guaranteed Benefit Features (Narrative) (Details) | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Guaranteed Benefit Features [Abstract] | |||
Percent of permanent life insurance in force | 32.00% | 32.00% | |
Percent of permanent life insurance sales | 35.00% | 26.00% |
Guaranteed Benefit Features (In
Guaranteed Benefit Features (Information On Guaranteed Death Benefit Features) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | ||
Return of Net Deposits [Member] | |||
Net Amount at Risk by Product and Guarantee [Line Items] | |||
Total account value | [1] | $ 95,959 | $ 96,941 |
Net amount at risk | [1],[2] | $ 119 | $ 81 |
Average attained age of contract holders | [1] | 64 years | 64 years |
Minimum Return [Member] | |||
Net Amount at Risk by Product and Guarantee [Line Items] | |||
Total account value | [1] | $ 104 | $ 108 |
Net amount at risk | [1],[2] | $ 17 | $ 18 |
Average attained age of contract holders | [1] | 76 years | 76 years |
Guaranteed minimum return | [1] | 5.00% | 5.00% |
Anniversary Contract Value [Member] | |||
Net Amount at Risk by Product and Guarantee [Line Items] | |||
Total account value | [1] | $ 26,071 | $ 26,596 |
Net amount at risk | [1],[2] | $ 543 | $ 417 |
Average attained age of contract holders | [1] | 70 years | 70 years |
[1] | Our variable contracts with guarantees may offer more than one type of guarantee in each contract; therefore, the amounts listed are not mutually exclusive. | ||
[2] | Represents the amount of death benefit in excess of the account balance that is subject to market fluctuations. |
Guaranteed Benefit Features (Su
Guaranteed Benefit Features (Summary Of Guaranteed Death Benefit Liabilities) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Guaranteed Benefit Features [Abstract] | ||
Balance as of beginning-of-year | $ 100 | $ 110 |
Changes in reserves | 11 | (5) |
Benefits paid | (3) | (6) |
Balance as of end-of-period | $ 108 | $ 99 |
Guaranteed Benefit Features (Ac
Guaranteed Benefit Features (Account Balances Of Variable Annuity Contracts With Guarantees Invested In Separate Accounts) (Details) - Variable Annuity [Member] - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Account Balances Of Variable Annuity Contracts With Guarantees Invested In Separate Accounts [Line Items] | ||
Total | $ 119,601 | $ 121,110 |
Percent of total variable annuity separate account values | 99.00% | 99.00% |
Domestic Equity [Member] | ||
Account Balances Of Variable Annuity Contracts With Guarantees Invested In Separate Accounts [Line Items] | ||
Total | $ 58,549 | $ 59,647 |
International Equity [Member] | ||
Account Balances Of Variable Annuity Contracts With Guarantees Invested In Separate Accounts [Line Items] | ||
Total | 20,609 | 20,837 |
Fixed Income [Member] | ||
Account Balances Of Variable Annuity Contracts With Guarantees Invested In Separate Accounts [Line Items] | ||
Total | $ 40,443 | $ 40,626 |
Contingencies And Commitments (
Contingencies And Commitments (Narrative) (Details) $ in Millions | Mar. 31, 2018USD ($) |
Pending Litigation [Member] | |
Loss Contingencies [Line Items] | |
Loss contingency, estimate | $ 50 |
Shares and Stockholders' Equi64
Shares and Stockholders' Equity (Components And Changes In Accumulated OCI) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance as of beginning-of-year | $ 3,327 | ||
(Increases) attributable to: | |||
Gross OTTI recognized in OCI | |||
Less: | |||
Balance as of end-of-period | 2,357 | ||
Unrealized Gain (Loss) on AFS Securities [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance as of beginning-of-year | 3,283 | 1,687 | |
Cumulative effect from adoption of new accounting standards | $ 634 | ||
Unrealized holding gains (losses) arising during the period | (2,924) | 505 | |
Change in foreign currency exchange rate adjustment | 53 | 21 | |
Change in DAC, VOBA, DSI, future contract benefits and other contract holder funds | 957 | (119) | |
Income tax benefit (expense) | 403 | (144) | |
Less: | |||
Reclassification adjustment for gains (losses) included in net income (loss) | (19) | (3) | |
Associated amortization of DAC, VOBA, DSI, and DFEL | (4) | (5) | |
Income tax benefit (expense) | 5 | 3 | |
Less: | |||
Balance as of end-of-period | 2,424 | 1,955 | |
Unrealized OTTI on AFS Securities [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance as of beginning-of-year | 39 | 22 | |
Cumulative effect from adoption of new accounting standards | 9 | ||
(Increases) attributable to: | |||
Income tax benefit (expense) | (1) | ||
Decreases attributable to | |||
Changes in fair value, sales, maturities or other settlements of AFS securities | (9) | 7 | |
Change in DAC, VOBA, DSI, and DFEL | (10) | (1) | |
Income tax benefit (expense) | 4 | (2) | |
Less: | |||
Balance as of end-of-period | 32 | 26 | |
Unrealized Gain (Loss) on Derivative Instruments [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance as of beginning-of-year | 27 | 93 | |
Cumulative effect from adoption of new accounting standards | 6 | 6 | |
Unrealized holding gains (losses) arising during the period | (83) | 3 | |
Change in foreign currency exchange rate adjustment | (50) | (20) | |
Decreases attributable to | |||
Change in DAC, VOBA, DSI and DFEL | 4 | (4) | |
Income tax benefit (expense) | 28 | 7 | |
Less: | |||
Reclassification adjustment for gains (losses) included in net income (loss) | 6 | 11 | |
Associated amortization of DAC, VOBA, DSI and DFEL | (1) | (2) | |
Income tax benefit (expense) | (1) | (3) | |
Balance as of end-of-period | (72) | 73 | |
Funded Status of Employee Benefit Plans | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance as of beginning-of-year | (22) | (20) | |
Cumulative effect from adoption of new accounting standards | $ (5) | ||
Less: | |||
Balance as of end-of-period | $ (27) | $ (20) |
Shares And Stockholders' Equi65
Shares And Stockholders' Equity (Schedule of Reclassifications Out Of AOCI) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net investment income | $ 1,176 | $ 1,176 |
Total realized gain (loss) | 22 | (89) |
Interest and debt expense | (32) | (32) |
Commissions and other expenses | (1,010) | (964) |
Income (loss) from continuing operations before taxes | 483 | 348 |
Income tax benefit (expense) | (76) | 1 |
Net income (loss) | 407 | 349 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Unrealized Gain (Loss) on AFS Securities [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Total realized gain (loss) | (19) | (3) |
Income (loss) from continuing operations before taxes | (23) | (8) |
Income tax benefit (expense) | 5 | 3 |
Net income (loss) | (18) | (5) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Unrealized Gain (Loss) on AFS Securities [Member] | Associated amortization of DAC, VOBA, DSI and DFEL [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Total realized gain (loss) | (4) | (5) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Unrealized Gain (Loss) on Derivative Instruments [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Nonoperating income expense | 6 | 11 |
Income (loss) from continuing operations before taxes | 5 | 9 |
Income tax benefit (expense) | (1) | (3) |
Net income (loss) | 4 | 6 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Unrealized Gain (Loss) on Derivative Instruments [Member] | Interest rate contracts [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net investment income | 1 | 2 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Unrealized Gain (Loss) on Derivative Instruments [Member] | Foreign currency contracts [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net investment income | 5 | 4 |
Total realized gain (loss) | 5 | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Unrealized Gain (Loss) on Derivative Instruments [Member] | Associated amortization of DAC, VOBA, DSI and DFEL [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Commissions and other expenses | $ (1) | $ (2) |
Realized (Gain) Loss (Details)
Realized (Gain) Loss (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Details underlying realized gain (loss) | |||
Total realized gain (loss) related to certain investments | [1] | $ (25) | $ (14) |
Realized gain (loss) on the mark-to-market on certain instruments | [2] | 105 | (14) |
Indexed annuity and IUL contracts net derivatives results: | |||
Gross gain (loss) | [3] | (1) | (9) |
Associated amortization of DAC, VOBA, DSI, and DFEL | [3] | (2) | |
Gross gain (loss) | (49) | (42) | |
Associated amortization of DAC, VOBA, DSI, and DFEL | (8) | (8) | |
Total realized gain (loss) | $ 22 | $ (89) | |
[1] | See "Realized Gain (Loss) Related to Certain Investments" section in Note 5. | ||
[2] | Represents changes in the fair values of certain derivative investments (not including those associated with our variable and indexed annuity and IUL contracts net derivatives results), reinsurance related embedded derivatives and trading securities. | ||
[3] | Represents the net difference between the change in the fair value of the S&P 500 Index ® call options that we hold and the change in the fair value of the embedded derivative liabilities of our indexed annuity and IUL contracts along with changes in the fair value of embedded derivative liabilities related to index call options we may purchase in the future to hedge contract holder index allocations applicable to future reset periods for our indexed annuity products. |
Fair Value of Financial Instr67
Fair Value of Financial Instruments (Narrative) (Details) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
Fair Value of Financial Instruments [Abstract] | ||
Assets measured on a nonrecurring basis | $ 0 | $ 0 |
Liabilities measured on a nonrecurring basis | $ 0 | $ 0 |
Fair Value of Financial Instr68
Fair Value of Financial Instruments (Carrying and Estimated Fair Values of Financial Instruments) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 | |
AFS securities: | |||
AFS Fixed Maturity Securities | $ 90,709 | $ 93,340 | |
AFS Equity securities | 246 | ||
Trading securities | 1,468 | 1,533 | |
Equity securities | 112 | ||
Mortgage loans on real estate | 10,954 | 10,662 | |
Derivative investments | 725 | 845 | |
Other investments | 1,807 | 2,006 | |
Carrying Value [Member] | |||
AFS securities: | |||
Trading securities | 1,468 | 1,533 | |
Equity securities | 112 | ||
Mortgage loans on real estate | 10,954 | 10,662 | |
Derivative investments | [1] | 725 | 845 |
Other investments | 1,807 | 2,006 | |
Cash and invested cash | 1,239 | 947 | |
Reinsurance related embedded derivatives | 58 | ||
Indexed annuity ceded embedded derivatives | 17 | 11 | |
Separate account assets | 142,761 | 144,219 | |
Future contract benefits: | |||
Indexed annuity and IUL contracts embedded derivatives | (1,346) | (1,418) | |
Other contract holder funds: | |||
Remaining guaranteed interest and similar contracts | (580) | (592) | |
Account values of certain investment contracts | (31,172) | (32,332) | |
Short-term debt | (39) | (10) | |
Long-term debt | (2,363) | (2,374) | |
Reinsurance related embedded derivatives | (51) | ||
Other liabilities - derivative liabilities | [1] | (359) | (455) |
Other liabilities - GLB embedded derivatives | (1,155) | (954) | |
Fair Value [Member] | |||
AFS securities: | |||
Trading securities | 1,468 | 1,533 | |
Equity securities | 112 | ||
Mortgage loans on real estate | 10,900 | 10,773 | |
Derivative investments | [1] | 725 | 845 |
Other investments | 1,807 | 2,006 | |
Cash and invested cash | 1,239 | 947 | |
Reinsurance related embedded derivatives | 58 | ||
Indexed annuity ceded embedded derivatives | 17 | 11 | |
Separate account assets | 142,761 | 144,219 | |
Future contract benefits: | |||
Indexed annuity and IUL contracts embedded derivatives | (1,346) | (1,418) | |
Other contract holder funds: | |||
Remaining guaranteed interest and similar contracts | (580) | (592) | |
Account values of certain investment contracts | (33,549) | (36,161) | |
Short-term debt | (39) | (10) | |
Long-term debt | (2,815) | (2,677) | |
Reinsurance related embedded derivatives | (51) | ||
Other liabilities - derivative liabilities | [1] | (359) | (455) |
Other liabilities - GLB embedded derivatives | (1,155) | (954) | |
Equity AFS Securities [Member] | Carrying Value [Member] | |||
AFS securities: | |||
AFS Equity securities | 246 | ||
Equity AFS Securities [Member] | Fair Value [Member] | |||
AFS securities: | |||
AFS Equity securities | 246 | ||
Fixed Maturity Securities [Member] | Carrying Value [Member] | |||
AFS securities: | |||
AFS Fixed Maturity Securities | 90,709 | 93,340 | |
Fixed Maturity Securities [Member] | Fair Value [Member] | |||
AFS securities: | |||
AFS Fixed Maturity Securities | 90,709 | 93,340 | |
GLB Direct Embedded Derivatives [Member] | Carrying Value [Member] | |||
AFS securities: | |||
Other assets - GLB embedded derivatives | 1,110 | 903 | |
GLB Direct Embedded Derivatives [Member] | Fair Value [Member] | |||
AFS securities: | |||
Other assets - GLB embedded derivatives | 1,110 | 903 | |
GLB Ceded Embedded Derivatives [Member] | Carrying Value [Member] | |||
AFS securities: | |||
Other assets - GLB embedded derivatives | 45 | 51 | |
GLB Ceded Embedded Derivatives [Member] | Fair Value [Member] | |||
AFS securities: | |||
Other assets - GLB embedded derivatives | $ 45 | $ 51 | |
[1] | We have master netting agreements with each of our derivative counterparties, which allow for the netting of our derivative asset and liability positions by counterparty. |
Fair Value of Financial Instr69
Fair Value of Financial Instruments (Fair Value of Assets and Liabilities on a Recurring Basis) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 | |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | $ 238,741 | $ 242,593 | |
Liabilities measured at fair value | (3,357) | (3,376) | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 1,496 | 1,507 | |
Significant Observable Inputs (Level 2) [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 229,580 | 233,632 | |
Liabilities measured at fair value | (446) | (431) | |
Significant Unobservable Inputs (Level 3) [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 7,665 | 7,454 | |
Liabilities measured at fair value | (2,911) | (2,945) | |
Corporate Bonds [Member] | Fixed Maturity Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 78,839 | 81,160 | |
Corporate Bonds [Member] | Significant Observable Inputs (Level 2) [Member] | Fixed Maturity Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 73,354 | 75,810 | |
Corporate Bonds [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fixed Maturity Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 5,485 | 5,350 | |
ABS [Member] | Fixed Maturity Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 901 | 953 | |
ABS [Member] | Significant Observable Inputs (Level 2) [Member] | Fixed Maturity Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 875 | 927 | |
ABS [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fixed Maturity Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 26 | 26 | |
U.S. Government Bonds [Member] | Fixed Maturity Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 369 | 533 | |
U.S. Government Bonds [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fixed Maturity Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 360 | 522 | |
U.S. Government Bonds [Member] | Significant Observable Inputs (Level 2) [Member] | Fixed Maturity Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 4 | 6 | |
U.S. Government Bonds [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fixed Maturity Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 5 | 5 | |
Foreign Government Bonds [Member] | Fixed Maturity Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 435 | 446 | |
Foreign Government Bonds [Member] | Significant Observable Inputs (Level 2) [Member] | Fixed Maturity Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 327 | 336 | |
Foreign Government Bonds [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fixed Maturity Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 108 | 110 | |
RMBS [Member] | Fixed Maturity Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 3,173 | 3,258 | |
RMBS [Member] | Significant Observable Inputs (Level 2) [Member] | Fixed Maturity Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 3,173 | 3,246 | |
RMBS [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fixed Maturity Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 12 | ||
CMBS [Member] | Fixed Maturity Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 662 | 599 | |
CMBS [Member] | Significant Observable Inputs (Level 2) [Member] | Fixed Maturity Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 635 | 593 | |
CMBS [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fixed Maturity Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 27 | 6 | |
CLOs [Member] | Fixed Maturity Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 875 | 808 | |
CLOs [Member] | Significant Observable Inputs (Level 2) [Member] | Fixed Maturity Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 873 | 717 | |
CLOs [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fixed Maturity Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 2 | 91 | |
State And Municipal Bonds [Member] | Fixed Maturity Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 4,844 | 4,959 | |
State And Municipal Bonds [Member] | Significant Observable Inputs (Level 2) [Member] | Fixed Maturity Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 4,844 | 4,959 | |
Hybrid And Redeemable Preferred Securities [Member] | Fixed Maturity Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 611 | 624 | |
Hybrid And Redeemable Preferred Securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fixed Maturity Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 69 | 70 | |
Hybrid And Redeemable Preferred Securities [Member] | Significant Observable Inputs (Level 2) [Member] | Fixed Maturity Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 465 | 478 | |
Hybrid And Redeemable Preferred Securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fixed Maturity Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 77 | 76 | |
Equity AFS Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 246 | ||
Equity AFS Securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 28 | ||
Equity AFS Securities [Member] | Significant Observable Inputs (Level 2) [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 57 | ||
Equity AFS Securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 161 | ||
Trading securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 1,468 | 1,533 | |
Trading securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 72 | 73 | |
Trading securities [Member] | Significant Observable Inputs (Level 2) [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 1,349 | 1,411 | |
Trading securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 47 | 49 | |
Equity Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 112 | ||
Equity Securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 29 | ||
Equity Securities [Member] | Significant Observable Inputs (Level 2) [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 56 | ||
Equity Securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 27 | ||
Derivative Investments [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 1,222 | 1,343 | [1] |
Derivative Investments [Member] | Significant Observable Inputs (Level 2) [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 533 | 740 | [1] |
Derivative Investments [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 689 | 603 | [1] |
Invested Cash [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 1,239 | 947 | |
Invested Cash [Member] | Significant Observable Inputs (Level 2) [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 1,239 | 947 | |
GLB Direct Embedded Derivatives [Member] | Other Assets [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 1,110 | 903 | |
GLB Direct Embedded Derivatives [Member] | Significant Unobservable Inputs (Level 3) [Member] | Other Assets [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 1,110 | 903 | |
GLB Ceded Embedded Derivatives [Member] | Other Assets [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 45 | 51 | |
GLB Ceded Embedded Derivatives [Member] | Other Liabilities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Liabilities measured at fair value | (1,155) | (954) | |
GLB Ceded Embedded Derivatives [Member] | Significant Unobservable Inputs (Level 3) [Member] | Other Assets [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 45 | 51 | |
GLB Ceded Embedded Derivatives [Member] | Significant Unobservable Inputs (Level 3) [Member] | Other Liabilities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Liabilities measured at fair value | (1,155) | (954) | |
Separate Account Assets [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 142,761 | 144,219 | |
Separate Account Assets [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 966 | 814 | |
Separate Account Assets [Member] | Significant Observable Inputs (Level 2) [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 141,795 | 143,405 | |
Indexed Annuity And IUL Contracts [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 17 | ||
Indexed Annuity And IUL Contracts [Member] | Other Assets [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 11 | ||
Indexed Annuity And IUL Contracts [Member] | Future Contract Benefits [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Liabilities measured at fair value | (1,346) | (1,418) | |
Indexed Annuity And IUL Contracts [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 17 | ||
Indexed Annuity And IUL Contracts [Member] | Significant Unobservable Inputs (Level 3) [Member] | Other Assets [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 11 | ||
Indexed Annuity And IUL Contracts [Member] | Significant Unobservable Inputs (Level 3) [Member] | Future Contract Benefits [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Liabilities measured at fair value | (1,346) | (1,418) | |
Reinsurance Related Embedded Derivatives [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 58 | ||
Liabilities measured at fair value | (51) | ||
Reinsurance Related Embedded Derivatives [Member] | Significant Observable Inputs (Level 2) [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 58 | ||
Liabilities measured at fair value | (51) | ||
Derivative Financial Instruments, Liabilities [Member] | Other Liabilities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Liabilities measured at fair value | (856) | (953) | |
Derivative Financial Instruments, Liabilities [Member] | Significant Observable Inputs (Level 2) [Member] | Other Liabilities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Liabilities measured at fair value | (446) | (380) | |
Derivative Financial Instruments, Liabilities [Member] | Significant Unobservable Inputs (Level 3) [Member] | Other Liabilities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Liabilities measured at fair value | $ (410) | $ (573) | |
[1] | Derivative investment assets and liabilities presented within the fair value hierarchy are presented on a gross basis by derivative type and not on a master netting basis by counterparty. |
Fair Value of Financial Instr70
Fair Value of Financial Instruments (Fair Value Measured On A Recurring Basis Reconciliation) (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | |||
Level 3 Unobservable Input Reconciliation | ||||
Beginning Fair Value | $ 4,509 | $ 4,117 | ||
Items Included in Net Income | 384 | (182) | ||
Gains (Losses) in OCI and Other | [1] | (8) | 97 | |
Issuances, Sales, Maturities, Settlements, Calls, Net | 90 | 111 | ||
Transfers In or Out of Level 3, Net | [2] | (221) | [3] | 146 |
Ending Fair Value | 4,754 | 4,289 | ||
Corporate Bonds [Member] | Fixed Maturity Securities [Member] | ||||
Level 3 Unobservable Input Reconciliation | ||||
Beginning Fair Value | [4] | 5,350 | 4,809 | |
Items Included in Net Income | [4] | 3 | 5 | |
Gains (Losses) in OCI and Other | [1],[4] | 18 | 65 | |
Issuances, Sales, Maturities, Settlements, Calls, Net | [4] | 97 | (200) | |
Transfers In or Out of Level 3, Net | [2],[4] | 17 | [3] | 131 |
Ending Fair Value | [4] | 5,485 | 4,810 | |
ABS [Member] | Fixed Maturity Securities [Member] | ||||
Level 3 Unobservable Input Reconciliation | ||||
Beginning Fair Value | [4] | 26 | 33 | |
Gains (Losses) in OCI and Other | [1],[4] | 1 | ||
Transfers In or Out of Level 3, Net | [2],[4] | (6) | ||
Ending Fair Value | [4] | 26 | 28 | |
U.S. Government Bonds [Member] | Fixed Maturity Securities [Member] | ||||
Level 3 Unobservable Input Reconciliation | ||||
Beginning Fair Value | [4] | 5 | ||
Transfers In or Out of Level 3, Net | [2],[4] | 5 | ||
Ending Fair Value | [4] | 5 | 5 | |
Foreign Government Bonds [Member] | Fixed Maturity Securities [Member] | ||||
Level 3 Unobservable Input Reconciliation | ||||
Beginning Fair Value | [4] | 110 | 111 | |
Gains (Losses) in OCI and Other | [1],[4] | (2) | (1) | |
Ending Fair Value | [4] | 108 | 110 | |
RMBS [Member] | Fixed Maturity Securities [Member] | ||||
Level 3 Unobservable Input Reconciliation | ||||
Beginning Fair Value | [4] | 12 | 3 | |
Issuances, Sales, Maturities, Settlements, Calls, Net | [4] | 4 | ||
Transfers In or Out of Level 3, Net | [2],[3],[4] | (12) | ||
Ending Fair Value | [4] | 7 | ||
CMBS [Member] | Fixed Maturity Securities [Member] | ||||
Level 3 Unobservable Input Reconciliation | ||||
Beginning Fair Value | [4] | 6 | 7 | |
Items Included in Net Income | [4] | 1 | ||
Issuances, Sales, Maturities, Settlements, Calls, Net | [4] | 20 | 41 | |
Transfers In or Out of Level 3, Net | [2],[4] | (4) | ||
Ending Fair Value | [4] | 27 | 44 | |
CLOs [Member] | Fixed Maturity Securities [Member] | ||||
Level 3 Unobservable Input Reconciliation | ||||
Beginning Fair Value | [4] | 91 | 68 | |
Issuances, Sales, Maturities, Settlements, Calls, Net | [4] | 2 | 5 | |
Transfers In or Out of Level 3, Net | [2],[4] | (91) | [3] | 15 |
Ending Fair Value | [4] | 2 | 88 | |
State And Municipal Bonds [Member] | Fixed Maturity Securities [Member] | ||||
Level 3 Unobservable Input Reconciliation | ||||
Items Included in Net Income | [4] | (1) | ||
Transfers In or Out of Level 3, Net | [2],[4] | 2 | ||
Ending Fair Value | [4] | 1 | ||
Hybrid And Redeemable Preferred Securities [Member] | Fixed Maturity Securities [Member] | ||||
Level 3 Unobservable Input Reconciliation | ||||
Beginning Fair Value | [4] | 76 | 76 | |
Gains (Losses) in OCI and Other | [1],[4] | 1 | 3 | |
Ending Fair Value | [4] | 77 | 79 | |
Equity AFS Securities [Member] | ||||
Level 3 Unobservable Input Reconciliation | ||||
Beginning Fair Value | [4] | 161 | 177 | |
Items Included in Net Income | [4] | 1 | ||
Gains (Losses) in OCI and Other | [1],[4] | (1) | ||
Issuances, Sales, Maturities, Settlements, Calls, Net | [4] | 5 | ||
Transfers In or Out of Level 3, Net | [2],[3],[4] | (161) | ||
Ending Fair Value | [4] | 182 | ||
Trading securities [Member] | ||||
Level 3 Unobservable Input Reconciliation | ||||
Beginning Fair Value | [4] | 49 | 65 | |
Items Included in Net Income | [4] | (2) | 1 | |
Gains (Losses) in OCI and Other | [1],[4] | 7 | ||
Issuances, Sales, Maturities, Settlements, Calls, Net | [4] | (16) | ||
Transfers In or Out of Level 3, Net | [2],[4] | 3 | ||
Ending Fair Value | [4] | 47 | 60 | |
Equity Securities [Member] | ||||
Level 3 Unobservable Input Reconciliation | ||||
Issuances, Sales, Maturities, Settlements, Calls, Net | [4] | 1 | ||
Transfers In or Out of Level 3, Net | [2],[3],[4] | 26 | ||
Ending Fair Value | [4] | 27 | ||
Derivative Investments [Member] | ||||
Level 3 Unobservable Input Reconciliation | ||||
Beginning Fair Value | [4] | 30 | (93) | |
Items Included in Net Income | [4] | 330 | (69) | |
Gains (Losses) in OCI and Other | [1],[4] | (25) | 23 | |
Issuances, Sales, Maturities, Settlements, Calls, Net | [4] | (56) | 251 | |
Ending Fair Value | [4] | 279 | 112 | |
GLB Direct Embedded Derivatives [Member] | Other Assets [Member] | ||||
Level 3 Unobservable Input Reconciliation | ||||
Beginning Fair Value | [5] | 903 | ||
Items Included in Net Income | [5] | 207 | 226 | |
Ending Fair Value | [5] | 1,110 | 226 | |
GLB Direct Embedded Derivatives [Member] | Other Liabilities [Member] | ||||
Level 3 Unobservable Input Reconciliation | ||||
Beginning Fair Value | [5] | (371) | ||
Items Included in Net Income | [5] | 371 | ||
GLB Ceded Embedded Derivatives [Member] | Other Assets [Member] | ||||
Level 3 Unobservable Input Reconciliation | ||||
Beginning Fair Value | [5] | 51 | 371 | |
Items Included in Net Income | [5] | (6) | (254) | |
Ending Fair Value | [5] | 45 | 117 | |
GLB Ceded Embedded Derivatives [Member] | Other Liabilities [Member] | ||||
Level 3 Unobservable Input Reconciliation | ||||
Beginning Fair Value | [5] | (954) | ||
Items Included in Net Income | [5] | (201) | (342) | |
Ending Fair Value | [5] | (1,155) | (342) | |
Indexed Annuity And IUL Contracts [Member] | Other Assets [Member] | ||||
Level 3 Unobservable Input Reconciliation | ||||
Beginning Fair Value | [5] | 11 | ||
Issuances, Sales, Maturities, Settlements, Calls, Net | [5] | 6 | ||
Ending Fair Value | [5] | 17 | ||
Indexed Annuity And IUL Contracts [Member] | Future Contract Benefits [Member] | ||||
Level 3 Unobservable Input Reconciliation | ||||
Beginning Fair Value | [5] | (1,418) | (1,139) | |
Items Included in Net Income | [5] | 52 | (120) | |
Issuances, Sales, Maturities, Settlements, Calls, Net | [5] | 20 | 21 | |
Ending Fair Value | [5] | $ (1,346) | $ (1,238) | |
[1] | The changes in fair value of the interest rate swaps are offset by an adjustment to derivative investments (see Note 6). | |||
[2] | Transfers into or out of Level 3 for AFS and trading securities are displayed at amortized cost as of the beginning-of-year. For AFS and trading securities, the difference between beginning-of-year amortized cost and beginning-of-year fair value was included in OCI and earnings, respectively, in the prior period. | |||
[3] | Transfers into or out of Level 3 for FHLB stock between equity securities and other investments at cost on our Consolidated Balance Sheets. | |||
[4] | Amortization and accretion of premiums and discounts are included in net investment income on our Consolidated Statements of Comprehensive Income (Loss). Gains (losses) from sales, maturities, settlements and calls and OTTI are included in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). | |||
[5] | Gains (losses) from sales, maturities, settlements and calls are included in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). |
Fair Value of Financial Instr71
Fair Value of Financial Instruments (Schedule Of Investment Holdings Movements) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | ||
Issuances | $ 318 | $ 128 |
Sales | (63) | 213 |
Maturities | (119) | (112) |
Settlements | (46) | (23) |
Calls | (95) | |
Total | 90 | 111 |
Corporate Bonds [Member] | Fixed Maturity Securities [Member] | ||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | ||
Issuances | 248 | 41 |
Sales | (57) | (62) |
Maturities | (2) | (22) |
Settlements | (92) | (62) |
Calls | (95) | |
Total | 97 | (200) |
RMBS [Member] | Fixed Maturity Securities [Member] | ||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | ||
Issuances | 4 | |
Total | 4 | |
CMBS [Member] | Fixed Maturity Securities [Member] | ||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | ||
Issuances | 21 | 41 |
Settlements | (1) | |
Total | 20 | 41 |
CLOs [Member] | Fixed Maturity Securities [Member] | ||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | ||
Issuances | 2 | 5 |
Total | 2 | 5 |
Equity AFS Securities [Member] | ||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | ||
Issuances | 7 | |
Sales | (2) | |
Total | 5 | |
Trading securities [Member] | ||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | ||
Issuances | 1 | |
Sales | (17) | |
Total | (16) | |
Equity Securities [Member] | ||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | ||
Issuances | 1 | |
Total | 1 | |
Derivative Investments [Member] | ||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | ||
Issuances | 67 | 47 |
Sales | (6) | 294 |
Maturities | (117) | (90) |
Total | (56) | 251 |
Indexed Annuity And IUL Contracts [Member] | Other Assets [Member] | ||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | ||
Issuances | 6 | |
Total | 6 | |
Indexed Annuity And IUL Contracts [Member] | Future Contract Benefits [Member] | ||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | ||
Issuances | (27) | (18) |
Settlements | 47 | 39 |
Total | $ 20 | $ 21 |
Fair Value of Financial Instr72
Fair Value of Financial Instruments (Changes In Unrealized Gains (Losses) Within Level 3 Financial Instruments Carried At Fair Value And Still Held) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Changes in unrealized gains (losses) within Level 3 financial instruments carried at fair value and still held | |||
Change in unrealized gains (losses) included in net income | [1] | $ 277 | $ (88) |
Derivative Investments [Member] | |||
Changes in unrealized gains (losses) within Level 3 financial instruments carried at fair value and still held | |||
Change in unrealized gains (losses) included in net income | 281 | (74) | |
Indexed Annuity And IUL Contracts [Member] | |||
Changes in unrealized gains (losses) within Level 3 financial instruments carried at fair value and still held | |||
Change in unrealized gains (losses) included in net income | (4) | (14) | |
GLB Direct And Ceded Embedded Derivative [Member] | |||
Changes in unrealized gains (losses) within Level 3 financial instruments carried at fair value and still held | |||
Change in unrealized gains (losses) included in net income | 376 | 747 | |
GLB Ceded Embedded Derivatives [Member] | |||
Changes in unrealized gains (losses) within Level 3 financial instruments carried at fair value and still held | |||
Change in unrealized gains (losses) included in net income | $ (376) | $ (747) | |
[1] | Included in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). |
Fair Value of Financial Instr73
Fair Value of Financial Instruments (Components Of The Transfers In And Out Of Level 3) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | ||
Transfers In to Level 3 | $ 66 | $ 200 |
Transfers Out of Level 3 | (287) | (54) |
Total Transfers In or (Out) of Level 3 | (221) | 146 |
Maximum [Member] | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | ||
Transfers between Levels 1 and 2 | 1 | 1 |
Corporate Bonds [Member] | Fixed Maturity Securities [Member] | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | ||
Transfers In to Level 3 | 40 | 160 |
Transfers Out of Level 3 | (23) | (29) |
Total Transfers In or (Out) of Level 3 | 17 | 131 |
ABS [Member] | Fixed Maturity Securities [Member] | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | ||
Transfers Out of Level 3 | (6) | |
Total Transfers In or (Out) of Level 3 | (6) | |
U.S. Government Bonds [Member] | Fixed Maturity Securities [Member] | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | ||
Transfers In to Level 3 | 5 | |
Total Transfers In or (Out) of Level 3 | 5 | |
RMBS [Member] | Fixed Maturity Securities [Member] | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | ||
Transfers Out of Level 3 | (12) | |
Total Transfers In or (Out) of Level 3 | (12) | |
CMBS [Member] | Fixed Maturity Securities [Member] | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | ||
Transfers Out of Level 3 | (4) | |
Total Transfers In or (Out) of Level 3 | (4) | |
CLOs [Member] | Fixed Maturity Securities [Member] | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | ||
Transfers In to Level 3 | 30 | |
Transfers Out of Level 3 | (91) | (15) |
Total Transfers In or (Out) of Level 3 | (91) | 15 |
State And Municipal Bonds [Member] | Fixed Maturity Securities [Member] | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | ||
Transfers In to Level 3 | 2 | |
Total Transfers In or (Out) of Level 3 | 2 | |
Equity AFS Securities [Member] | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | ||
Transfers Out of Level 3 | (161) | |
Total Transfers In or (Out) of Level 3 | (161) | |
Trading securities [Member] | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | ||
Transfers In to Level 3 | 3 | |
Total Transfers In or (Out) of Level 3 | $ 3 | |
Equity Securities [Member] | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | ||
Transfers In to Level 3 | 26 | |
Total Transfers In or (Out) of Level 3 | $ 26 |
Fair Value of Financial Instr74
Fair Value of Financial Instruments (Fair Value Inputs Quantitative Information) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Assets Fair Value Disclosure [Abstract] | ||
Assets Fair Value Disclosure | $ 238,741 | $ 242,593 |
Liabilities Fair Value Disclosure [Abstract] | ||
Liabilities measured at fair value | (3,357) | (3,376) |
Significant Unobservable Inputs (Level 3) [Member] | ||
Assets Fair Value Disclosure [Abstract] | ||
Assets Fair Value Disclosure | 7,665 | 7,454 |
Liabilities Fair Value Disclosure [Abstract] | ||
Liabilities measured at fair value | (2,911) | $ (2,945) |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Corporate Bonds [Member] | Fixed Maturity Securities [Member] | ||
Assets Fair Value Disclosure [Abstract] | ||
Assets Fair Value Disclosure | $ 2,570 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Corporate Bonds [Member] | Maximum [Member] | Fixed Maturity Securities [Member] | ||
Assets Fair Value Disclosure [Abstract] | ||
Liquidity Duration Adjustment | 22.20% | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Corporate Bonds [Member] | Minimum [Member] | Fixed Maturity Securities [Member] | ||
Assets Fair Value Disclosure [Abstract] | ||
Liquidity Duration Adjustment | 0.50% | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | ABS [Member] | Fixed Maturity Securities [Member] | ||
Assets Fair Value Disclosure [Abstract] | ||
Assets Fair Value Disclosure | $ 23 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | ABS [Member] | Maximum [Member] | Fixed Maturity Securities [Member] | ||
Assets Fair Value Disclosure [Abstract] | ||
Liquidity Duration Adjustment | 3.00% | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | ABS [Member] | Minimum [Member] | Fixed Maturity Securities [Member] | ||
Assets Fair Value Disclosure [Abstract] | ||
Liquidity Duration Adjustment | 3.00% | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Foreign Government Bonds [Member] | Fixed Maturity Securities [Member] | ||
Assets Fair Value Disclosure [Abstract] | ||
Assets Fair Value Disclosure | $ 78 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Foreign Government Bonds [Member] | Maximum [Member] | Fixed Maturity Securities [Member] | ||
Assets Fair Value Disclosure [Abstract] | ||
Liquidity Duration Adjustment | 3.10% | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Foreign Government Bonds [Member] | Minimum [Member] | Fixed Maturity Securities [Member] | ||
Assets Fair Value Disclosure [Abstract] | ||
Liquidity Duration Adjustment | 1.60% | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Hybrid And Redeemable Preferred Securities [Member] | Fixed Maturity Securities [Member] | ||
Assets Fair Value Disclosure [Abstract] | ||
Assets Fair Value Disclosure | $ 4 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Hybrid And Redeemable Preferred Securities [Member] | Maximum [Member] | Fixed Maturity Securities [Member] | ||
Assets Fair Value Disclosure [Abstract] | ||
Liquidity Duration Adjustment | 1.80% | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Hybrid And Redeemable Preferred Securities [Member] | Minimum [Member] | Fixed Maturity Securities [Member] | ||
Assets Fair Value Disclosure [Abstract] | ||
Liquidity Duration Adjustment | 1.80% | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Equity Securities [Member] | Fixed Maturity Securities [Member] | ||
Assets Fair Value Disclosure [Abstract] | ||
Assets Fair Value Disclosure | $ 21 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Equity Securities [Member] | Maximum [Member] | Fixed Maturity Securities [Member] | ||
Assets Fair Value Disclosure [Abstract] | ||
Liquidity Duration Adjustment | 5.00% | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Equity Securities [Member] | Minimum [Member] | Fixed Maturity Securities [Member] | ||
Assets Fair Value Disclosure [Abstract] | ||
Liquidity Duration Adjustment | 4.50% | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | GLB Direct And Ceded Embedded Derivative [Member] | Other Assets [Member] | ||
Assets Fair Value Disclosure [Abstract] | ||
Assets Fair Value Disclosure | $ 1,155 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | GLB Direct And Ceded Embedded Derivative [Member] | Maximum [Member] | Other Assets [Member] | ||
Fair Value Inputs [Abstract] | ||
Lapse Rate | 30.00% | |
Utilization of guaranteed withdrawal | 100.00% | |
Claims Utilization Factor | 100.00% | |
Premiums Utilization Factor | 115.00% | |
NPR | 0.30% | |
Volatility | 29.00% | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | GLB Direct And Ceded Embedded Derivative [Member] | Minimum [Member] | Other Assets [Member] | ||
Fair Value Inputs [Abstract] | ||
Lapse Rate | 1.00% | |
Utilization of guaranteed withdrawal | 85.00% | |
Claims Utilization Factor | 60.00% | |
Premiums Utilization Factor | 80.00% | |
NPR | 0.02% | |
Volatility | 1.00% | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Indexed Annuity And IUL Contracts [Member] | Other Assets [Member] | ||
Assets Fair Value Disclosure [Abstract] | ||
Assets Fair Value Disclosure | $ 17 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Indexed Annuity And IUL Contracts [Member] | Maximum [Member] | Other Assets [Member] | ||
Fair Value Inputs [Abstract] | ||
Lapse Rate | 9.00% | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Indexed Annuity And IUL Contracts [Member] | Minimum [Member] | Other Assets [Member] | ||
Fair Value Inputs [Abstract] | ||
Lapse Rate | 1.00% | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Future contract benefits - indexed annuity and IUL contracts embedded derivatives | Future Contract Benefits [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Liabilities measured at fair value | $ (1,346) | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Future contract benefits - indexed annuity and IUL contracts embedded derivatives | Maximum [Member] | Future Contract Benefits [Member] | ||
Fair Value Inputs [Abstract] | ||
Lapse Rate | 9.00% | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Future contract benefits - indexed annuity and IUL contracts embedded derivatives | Minimum [Member] | Future Contract Benefits [Member] | ||
Fair Value Inputs [Abstract] | ||
Lapse Rate | 1.00% | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | GLB Ceded Embedded Derivatives [Member] | Other Liabilities [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Liabilities measured at fair value | $ (1,155) | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | GLB Ceded Embedded Derivatives [Member] | Maximum [Member] | Other Liabilities [Member] | ||
Fair Value Inputs [Abstract] | ||
Lapse Rate | 30.00% | |
Utilization of guaranteed withdrawal | 100.00% | |
Claims Utilization Factor | 100.00% | |
Premiums Utilization Factor | 115.00% | |
NPR | 0.30% | |
Volatility | 29.00% | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | GLB Ceded Embedded Derivatives [Member] | Minimum [Member] | Other Liabilities [Member] | ||
Fair Value Inputs [Abstract] | ||
Lapse Rate | 1.00% | |
Utilization of guaranteed withdrawal | 85.00% | |
Claims Utilization Factor | 60.00% | |
Premiums Utilization Factor | 80.00% | |
NPR | 0.02% | |
Volatility | 1.00% |
Segment Information (Narrative)
Segment Information (Narrative) (Details) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Segment Information [Abstract] | |||
Federal rate | 21.00% | 35.00% | 35.00% |
Segment Information (Reconcilia
Segment Information (Reconciliation Of Revenue From Segments To Consolidated) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Segment Reporting Information [Line Items] | ||
Excluded realized gain (loss), pre-tax | $ (27) | $ (131) |
Amortization of deferred gain arising from reserve changes on business sold through reinsurance, pre-tax | 1 | |
Total revenues | 3,404 | 3,229 |
Annuities Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 984 | 978 |
Retirement Plan Services Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 288 | 279 |
Life Insurance Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 1,549 | 1,483 |
Group Protection Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 552 | 541 |
Other Operations [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenues | $ 58 | $ 78 |
Segment Information (Reconcil77
Segment Information (Reconciliation Of Income (Loss) From Operations By Segment To Consolidated Net Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | ||
Excluded realized gain (loss), after-tax | $ (22) | $ (85) |
Net impact from the Tax Cuts and Jobs Act | (12) | |
Acquisition and integration costs related to mergers and acquisitions, after-tax | (4) | |
Net income (loss) | 407 | 349 |
Annuities Segment [Member] | ||
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | ||
Net income (loss) | 272 | 278 |
Retirement Plan Services Segment [Member] | ||
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | ||
Net income (loss) | 40 | 35 |
Life Insurance Segment [Member] | ||
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | ||
Net income (loss) | 122 | 114 |
Group Protection Segment [Member] | ||
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | ||
Net income (loss) | 29 | $ 7 |
Other Operations [Member] | ||
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | ||
Net income (loss) | $ (18) |
Segment Information (Schedule O
Segment Information (Schedule Of Revenue From Contracts With Customers) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Disaggregation of Revenue [Line Items] | |
Total revenue from contracts with customers | $ 285 |
Transferred at Point in Time [Member] | |
Disaggregation of Revenue [Line Items] | |
Total revenue from contracts with customers | 5 |
Transferred over Time [Member] | |
Disaggregation of Revenue [Line Items] | |
Total revenue from contracts with customers | 280 |
Fee Income [Member] | |
Disaggregation of Revenue [Line Items] | |
Total revenue from contracts with customers | 180 |
Other Revenues [Member] | |
Disaggregation of Revenue [Line Items] | |
Total revenue from contracts with customers | 105 |
Annuities Segment [Member] | |
Disaggregation of Revenue [Line Items] | |
Total revenue from contracts with customers | 226 |
Annuities Segment [Member] | Transferred at Point in Time [Member] | |
Disaggregation of Revenue [Line Items] | |
Total revenue from contracts with customers | 2 |
Annuities Segment [Member] | Transferred over Time [Member] | |
Disaggregation of Revenue [Line Items] | |
Total revenue from contracts with customers | 224 |
Annuities Segment [Member] | Fee Income [Member] | |
Disaggregation of Revenue [Line Items] | |
Total revenue from contracts with customers | 133 |
Annuities Segment [Member] | Other Revenues [Member] | |
Disaggregation of Revenue [Line Items] | |
Total revenue from contracts with customers | 93 |
Retirement Plan Services Segment [Member] | |
Disaggregation of Revenue [Line Items] | |
Total revenue from contracts with customers | 46 |
Retirement Plan Services Segment [Member] | Transferred at Point in Time [Member] | |
Disaggregation of Revenue [Line Items] | |
Total revenue from contracts with customers | 1 |
Retirement Plan Services Segment [Member] | Transferred over Time [Member] | |
Disaggregation of Revenue [Line Items] | |
Total revenue from contracts with customers | 45 |
Retirement Plan Services Segment [Member] | Fee Income [Member] | |
Disaggregation of Revenue [Line Items] | |
Total revenue from contracts with customers | 42 |
Retirement Plan Services Segment [Member] | Other Revenues [Member] | |
Disaggregation of Revenue [Line Items] | |
Total revenue from contracts with customers | 4 |
Life Insurance Segment [Member] | |
Disaggregation of Revenue [Line Items] | |
Total revenue from contracts with customers | 8 |
Life Insurance Segment [Member] | Transferred at Point in Time [Member] | |
Disaggregation of Revenue [Line Items] | |
Total revenue from contracts with customers | 2 |
Life Insurance Segment [Member] | Transferred over Time [Member] | |
Disaggregation of Revenue [Line Items] | |
Total revenue from contracts with customers | 6 |
Life Insurance Segment [Member] | Fee Income [Member] | |
Disaggregation of Revenue [Line Items] | |
Total revenue from contracts with customers | 5 |
Life Insurance Segment [Member] | Other Revenues [Member] | |
Disaggregation of Revenue [Line Items] | |
Total revenue from contracts with customers | 3 |
Group Protection Segment [Member] | |
Disaggregation of Revenue [Line Items] | |
Total revenue from contracts with customers | 5 |
Group Protection Segment [Member] | Transferred over Time [Member] | |
Disaggregation of Revenue [Line Items] | |
Total revenue from contracts with customers | 5 |
Group Protection Segment [Member] | Other Revenues [Member] | |
Disaggregation of Revenue [Line Items] | |
Total revenue from contracts with customers | $ 5 |
Subsequent Events (Details)
Subsequent Events (Details) $ in Millions | Apr. 25, 2018USD ($) |
Subsequent Event [Member] | |
Subsequent Event [Line Items] | |
Capital contribution | $ 500 |