Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Mar. 09, 2020 | Jun. 30, 2019 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 000-55871 | ||
Entity Registrant Name | THE LINCOLN NATIONAL LIFE INSURANCE COMPANY | ||
Entity Incorporation, State or Country Code | IN | ||
Entity Tax Identification Number | 35-0472300 | ||
Entity Address, Address Line One | 1300 South Clinton Street | ||
Entity Address, City or Town | Fort Wayne | ||
Entity Address, State or Province | IN | ||
Entity Address, Postal Zip Code | 46802 | ||
City Area Code | 260 | ||
Local Phone Number | 455-2000 | ||
Title of 12(g) Security | Common Stock, par value $2.50 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 10,000,000 | ||
Entity Public Float | $ 0 | ||
Amendment Flag | false | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2019 | ||
Entity Central Index Key | 0000726865 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Investments: | |||
Fixed maturity available-for-sale securities, at fair value (amortized cost: 2019 – $93,307; 2018 – $91,219) | $ 103,773 | $ 92,787 | |
Trading securities | 4,602 | 1,869 | |
Equity securities | 103 | 99 | |
Mortgage loans on real estate | 16,244 | 13,190 | |
Policy loans | 2,460 | 2,491 | |
Derivative investments | 1,911 | 1,081 | |
Other investments | 2,565 | 1,962 | |
Total investments | 131,658 | 113,479 | |
Cash and invested cash | 1,879 | 1,848 | |
Deferred acquisition costs and value of business acquired | 7,745 | 10,308 | |
Premiums and fees receivable | 464 | 568 | |
Accrued investment income | 1,109 | 1,087 | |
Reinsurance recoverables | 19,164 | 19,826 | |
Reinsurance related embedded derivatives | 188 | ||
Funds withheld reinsurance assets | 542 | 563 | |
Goodwill | 1,778 | 1,782 | |
Other assets | 18,106 | 16,663 | |
Separate account assets | 153,571 | 132,833 | |
Total assets | 336,016 | 299,145 | |
Liabilities | |||
Future contract benefits | 35,717 | 33,884 | |
Other contract holder funds | 97,422 | 90,573 | |
Short-term debt | [1] | 609 | 288 |
Long-term debt | 2,414 | 2,401 | |
Reinsurance related embedded derivatives | 375 | ||
Funds withheld reinsurance liabilities | 5,566 | 4,860 | |
Payables for collateral on investments | 5,077 | 4,786 | |
Other liabilities | 13,680 | 13,201 | |
Separate account liabilities | 153,571 | 132,833 | |
Total liabilities | 314,431 | 282,826 | |
Contingencies and Commitments (See Note 14) | |||
Stockholder’s Equity | |||
Common stock – 10,000,000 shares authorized, issued and outstanding | 11,312 | 11,237 | |
Retained earnings | 4,437 | 4,423 | |
Accumulated other comprehensive income (loss) | 5,836 | 659 | |
Total stockholder’s equity | 21,585 | 16,319 | |
Total liabilities and stockholder’s equity | $ 336,016 | $ 299,145 | |
[1] | The short-term debt represents short-term notes payable to LNC. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Available-for-sale securities, at fair value: | ||
Fixed maturity available-for-sale securities (amortized cost) | $ 93,307 | $ 91,219 |
Stockholder’s 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 | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues | |||
Insurance premiums | $ 5,277 | $ 4,362 | $ 3,018 |
Fee income | 6,247 | 5,733 | 5,369 |
Net investment income | 4,962 | 4,844 | 4,760 |
Realized gain (loss): | |||
Total other-than-temporary impairment losses on securities | (28) | (7) | (18) |
Portion of loss recognized in other comprehensive income | 13 | ||
Net other-than-temporary impairment losses on securities recognized in earnings | (15) | (7) | (18) |
Realized gain (loss), excluding other-than-temporary impairment losses on securities | (813) | (85) | (438) |
Total realized gain (loss) | (828) | (92) | (456) |
Amortization of deferred gain on business sold through reinsurance | 27 | 4 | 18 |
Other revenues | 507 | 507 | 439 |
Total revenues | 16,192 | 15,358 | 13,148 |
Expenses | |||
Interest credited | 2,754 | 2,589 | 2,558 |
Benefits | 7,585 | 6,144 | 4,818 |
Commissions and other expenses | 5,065 | 4,583 | 3,967 |
Interest and debt expense | 145 | 136 | 126 |
Strategic digitization expense | 66 | 76 | 43 |
Impairment of intangibles | 905 | ||
Total expenses | 15,615 | 13,528 | 12,417 |
Income (loss) before taxes | 577 | 1,830 | 731 |
Federal income tax expense (benefit) | (37) | 257 | (1,287) |
Net income (loss) | 614 | 1,573 | 2,018 |
Other comprehensive income (loss), net of tax: | |||
Unrealized investment gains (losses) | 5,173 | (3,314) | 1,547 |
Funded status of employee benefit plans | 4 | 2 | (2) |
Total other comprehensive income (loss), net of tax | 5,177 | (3,312) | 1,545 |
Comprehensive income (loss) | $ 5,791 | $ (1,739) | $ 3,563 |
Consolidated Statements Of Stoc
Consolidated Statements Of Stockholder's Equity - USD ($) $ in Millions | Common Stock [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total |
Balance as of beginning-of-period at Dec. 31, 2016 | $ 10,696 | $ 3,342 | $ 1,782 | |
Stock compensation/issued for benefit plans | 17 | |||
Net income (loss) | 2,018 | $ 2,018 | ||
Dividends paid to Lincoln National Corporation | (955) | |||
Other comprehensive income (loss), net of tax | 1,545 | 1,545 | ||
Balance as of end-of-period at Dec. 31, 2017 | 10,713 | 4,405 | 3,327 | 18,445 |
Cumulative effect from adoption of new accounting standards at Dec. 31, 2017 | (644) | 644 | ||
Capital contributions from Lincoln National Corporation | 500 | |||
Stock compensation/issued for benefit plans | 24 | |||
Net income (loss) | 1,573 | 1,573 | ||
Dividends paid to Lincoln National Corporation | (911) | |||
Other comprehensive income (loss), net of tax | (3,312) | (3,312) | ||
Balance as of end-of-period at Dec. 31, 2018 | 11,237 | 4,423 | 659 | 16,319 |
Capital contributions from Lincoln National Corporation | 50 | |||
Stock compensation/issued for benefit plans | 25 | |||
Net income (loss) | 614 | 614 | ||
Dividends paid to Lincoln National Corporation | (600) | |||
Other comprehensive income (loss), net of tax | 5,177 | 5,177 | ||
Balance as of end-of-period at Dec. 31, 2019 | $ 11,312 | $ 4,437 | $ 5,836 | $ 21,585 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash Flows from Operating Activities | |||
Net income (loss) | $ 614 | $ 1,573 | $ 2,018 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Trading securities purchases, sales and maturities, net | (2,522) | (120) | 120 |
Deferred acquisition costs, value of business acquired, deferred sales inducements and deferred front-end loads deferrals and interest, net of amortization | (448) | (108) | (17) |
Change in premiums and fees receivable | 104 | (87) | 34 |
Change in accrued investment income | (22) | (6) | 19 |
Change in future contract benefits and other contract holder funds | (918) | 1,105 | (2,062) |
Change in reinsurance related assets and liabilities | (277) | (1,233) | 1,001 |
Change in accrued expenses | 89 | (99) | 86 |
Change in federal income tax accruals | (282) | 65 | (1,502) |
Change in cash management agreement | (1,115) | 329 | (277) |
Realized (gain) loss | 828 | 92 | 456 |
Amortization of deferred gain on business sold through reinsurance | (27) | (4) | (18) |
Impairment of intangibles | 905 | ||
Other | 343 | 88 | 91 |
Net cash provided by (used in) operating activities | (3,633) | 1,595 | 854 |
Cash Flows from Investing Activities | |||
Purchases of available-for-sale securities and equity securities | (14,927) | (12,406) | (9,887) |
Sales of available-for-sale securities and equity securities | 6,771 | 3,191 | 1,773 |
Maturities of available-for-sale securities | 6,426 | 6,348 | 5,790 |
Purchase of common stock in acquisition, net of cash acquired | (1,410) | ||
Sale of business, net | (12) | ||
Purchases of alternative investments | (433) | (314) | (357) |
Sales and repayments of alternative investments | 131 | 178 | 184 |
Proceeds from affiliate transfer of alternative investments | 66 | ||
Issuance of mortgage loans on real estate | (4,218) | (2,920) | (2,047) |
Repayment and maturities of mortgage loans on real estate | 1,144 | 1,048 | 1,145 |
Issuance and repayment of policy loans, net | 32 | 20 | 49 |
Net change in collateral on investments, derivatives and related settlements | 349 | 654 | (374) |
Other | (259) | (191) | (123) |
Net cash provided by (used in) investing activities | (4,984) | (5,814) | (3,781) |
Cash Flows from Financing Activities | |||
Capital contribution from Lincoln National Corporation | 50 | 500 | |
Payment of long-term debt, including current maturities | (28) | (13) | (290) |
Issuance of long-term debt, net of issuance costs | 28 | 13 | 75 |
Issuance (payment) of short-term debt | 321 | 278 | (270) |
Proceeds from sale-leaseback transactions | 88 | 62 | |
Payment related to sale-leaseback transactions | (83) | ||
Proceeds from certain financing arrangements | 107 | ||
Deposits of fixed account values, including the fixed portion of variable | 16,049 | 13,616 | 10,775 |
Withdrawals of fixed account values, including the fixed portion of variable | (5,800) | (5,957) | (5,764) |
Transfers to and from separate accounts, net | (1,362) | (2,469) | (1,787) |
Common stock issued for benefit plans | (34) | (25) | (29) |
Dividends paid to Lincoln National Corporation | (600) | (911) | (955) |
Net cash provided by (used in) financing activities | 8,648 | 5,120 | 1,817 |
Net increase (decrease) in cash, invested cash and restricted cash | 31 | 901 | (1,110) |
Cash, invested cash and restricted cash as of beginning-of-year | 1,848 | 947 | 2,057 |
Cash, invested cash and restricted cash as of end-of-year | $ 1,879 | $ 1,848 | $ 947 |
Nature of Operations, Basis of
Nature of Operations, Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Nature of Operations, Basis of Presentation and Summary of Significant Accounting Policies [Abstract] | |
Nature of Operations, Basis of Presentation and Summary of Significant Accounting Policies | 1. Nature of Operations, Basis of Presentation and Summary of Significant Accounting Policies 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 two insurance company subsidiaries, Lincoln Life & Annuity Company of New York (“LLANY”) and Lincoln Life Assurance Company of Boston (“LLACB”). We also own several non-insurance companies, including Lincoln Financial Distributors, our wholesale distributor, and Lincoln Financial Advisors Corporation, part of LNC’s retail distributor, Lincoln Financial Network. LNL’s principal businesses consist of underwriting annuities, deposit-type contracts and life insurance through multiple distribution channels. LNL is licensed and sells its products throughout the U.S. and several U.S. territories. See Note 21 for additional information. Basis of Presentation The accompanying consolidated financial statements are prepared in accordance with United States of America generally accepted accounting principles (“GAAP”). Certain GAAP policies, which significantly affect the determination of financial condition, results of operations and cash flows, are summarized below. Summary of Significant Accounting Policies Principles of Consolidation The accompanying consolidated financial statements include the accounts of LNL and all other entities in which we have a controlling financial interest and any variable interest entities (“VIEs”) in which we are the primary beneficiary. As discussed in Note 3, on May 1, 2018, LNC and LNL completed the acquisition of Liberty Life Assurance Company of Boston (“Liberty Life”), which effective September 1, 2019, was renamed Lincoln Life Assurance Company of Boston. We use the equity method of accounting to recognize all of our investments in limited liability partnerships. All material inter-company accounts and transactions have been eliminated in consolidation. Our involvement with VIEs is primarily to invest in assets that allow us to gain exposure to a broadly diversified portfolio of asset classes. A VIE is an entity that does not have sufficient equity to finance its own activities without additional financial support or where investors lack certain characteristics of a controlling financial interest. We assess our contractual, ownership or other interests in a VIE to determine if our interest participates in the variability the VIE was designed to absorb and pass onto variable interest holders. We perform an ongoing qualitative assessment of our variable interests in VIEs to determine whether we have a controlling financial interest and would therefore be considered the primary beneficiary of the VIE. If we determine we are the primary beneficiary of a VIE, we consolidate the assets and liabilities of the VIE in our consolidated financial statements. Accounting Estimates and Assumptions The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions affecting the reported amounts of assets and liabilities and the disclosures of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses for the reporting period. Those estimates are inherently subject to change and actual results could differ from those estimates. Included among the material (or potentially material) reported amounts and disclosures that require extensive use of estimates are: fair value of certain investments and derivatives, other-than-temporary impairment (“OTTI”) and asset valuation allowances, deferred acquisition costs (“DAC”) , value of business acquired (“VOBA”) , deferred sales inducements (“DSI”), goodwill, future contract benefits, other contract holder funds including deferred front-end loads (“DFEL”) , pension plans, stock-based incentive compensation, income taxes and the potential effects of resolving litigated matters. Business Combinations We use the acquisition method of accounting for all business combination transactions, and accordingly, recognize the fair values of assets acquired, liabilities assumed and any noncontrolling interests in our consolidated financial statements. The allocation of fair values may be subject to adjustment after the initial allocation for up to a one-year period as more information becomes available relative to the fair values as of the acquisition date. The consolidated financial statements include the results of operations of any acquired company since the acquisition date. Fair Value Measurement Our measurement of fair value is based on assumptions used by market participants in pricing the asset or liability, which may include inherent risk, restrictions on the sale or use of an asset or non-performance risk (“NPR”), which would include our own credit risk. Our estimate of an exchange price is the price in an orderly transaction between market participants to sell the asset or transfer the liability (“exit price”) in the principal market, or the most advantageous market in the absence of a principal market, for that asset or liability, as opposed to the price that would be paid to acquire the asset or receive a liability (“entry price”). Pursuant to the Fair Value Measurements and Disclosures Topic of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification TM (“ASC”), we categorize our financial instruments carried at fair value into a three-level fair value hierarchy, based on the priority of inputs to the respective valuation technique. The three-level hierarchy for fair value measurement is defined as follows: Level 1 – inputs to the valuation methodology are quoted prices available in active markets for identical investments as of the reporting date, except for large holdings subject to “blockage discounts” that are excluded; Level 2 – inputs to the valuation methodology are other than quoted prices in active markets, which are either directly or indirectly observable as of the reporting date, and fair value can be determined through the use of models or other valuation methodologies; and Level 3 – inputs to the valuation methodology are unobservable inputs in situations where there is little or no market activity for the asset or liability, and we make estimates and assumptions related to the pricing of the asset or liability, including assumptions regarding risk. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the investment. When a determination is made to classify an asset or liability within Level 3 of the fair value hierarchy, the determination is based upon the significance of the unobservable inputs to the overall fair value measurement. Because certain securities trade in less liquid or illiquid markets with limited or no pricing information, the determination of fair value for these securities is inherently more difficult. However, Level 3 fair value investments may include, in addition to the unobservable or Level 3 inputs, observable components, which are components that are actively quoted or can be validated to market-based sources. Fixed Maturity Available-For-Sale Securities – Fair Valuation Methodologies and Associated Inputs Securities classified as available-for-sale (“AFS”) consist of fixed maturity securities and are stated at fair value with unrealized gains and losses included within accumulated other comprehensive income (loss) (“AOCI”), net of associated DAC, VOBA, DSI , future contract benefits, other contract holder funds and deferred income taxes. We measure the fair value of our securities classified as fixed maturity AFS based on assumptions used by market participants in pricing the security. The most appropriate valuation methodology is selected based on the specific characteristics of the fixed maturity security, and we consistently apply the valuation methodology to measure the security’s fair value. Our fair value measurement is based on a market approach that utilizes prices and other relevant information generated by market transactions involving identical or comparable securities. Sources of inputs to the market approach primarily include third-party pricing services, independent broker quotations or pricing matrices. We do not adjust prices received from third parties; however, we do analyze the third-party pricing services’ valuation methodologies and related inputs and perform additional evaluation to determine the appropriate level within the fair value hierarchy. The observable and unobservable inputs to our valuation methodologies are based on a set of standard inputs that we generally use to evaluate all of our fixed maturity AFS securities. Observable inputs include benchmark yields, reported trades, broker-dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data. In addition, market indicators, industry and economic events are monitored, and further market data is acquired if certain triggers are met. For certain security types, additional inputs may be used, or some of the inputs described above may not be applicable. For private placement securities, we use pricing matrices that utilize observable pricing inputs of similar public securities and Treasury yields as inputs to the fair value measurement. Depending on the type of security or the daily market activity, standard inputs may be prioritized differently or may not be available for all fixed maturity AFS securities on any given day. For broker-quoted only securities, non-binding quotes from market makers or broker-dealers are obtained from sources recognized as market participants. For securities trading in less liquid or illiquid markets with limited or no pricing information, we use unobservable inputs to measure fair value. The following summarizes our fair valuation methodologies and associated inputs, which are particular to the specified security type and are in addition to the defined standard inputs to our valuation methodologies for all of our fixed maturity AFS securities discussed above: Corporate bonds and U.S. government bonds – We also use Trade Reporting and Compliance Engine TM reported tables for our corporate bonds and vendor trading platform data for our U.S. government bonds. Mortgage- and asset-backed securities (“ABS”) – We also utilize additional inputs, which include new issues data, monthly payment information and monthly collateral performance, including prepayments, severity, delinquencies, step-down features and over collateralization features for each of our mortgage-backed securities (“MBS”), which include collateralized mortgage obligations and mortgage pass through securities backed by residential mortgages (“RMBS”), commercial mortgage-backed securities (“CMBS”), collateralized loan obligations (“CLOs”) and collateralized debt obligations (“CDOs”). State and municipal bonds – We also use additional inputs that include information from the Municipal Securities Rule Making Board, as well as material event notices, new issue data, issuer financial statements and Municipal Market Data benchmark yields for our state and municipal bonds. Hybrid and redeemable preferred securities – We also utilize additional inputs of exchange prices (underlying and common stock of the same issuer) for our hybrid and redeemable preferred securities. In order to validate the pricing information and broker-dealer quotes, we employ, where possible, procedures that include comparisons with similar observable positions, comparisons with subsequent sales and observations of general market movements for those security classes. We have policies and procedures in place to review the process that is utilized by our third-party pricing service and the output that is provided to us by the pricing service. On a periodic basis, we test the pricing for a sample of securities to evaluate the inputs and assumptions used by the pricing service, and we perform a comparison of the pricing service output to an alternative pricing source. We also evaluate prices provided by our primary pricing service to ensure that they are not stale or unreasonable by reviewing the prices for unusual changes from period to period based on certain parameters or for lack of change from one period to the next. Fixed Maturity AFS Securities – Evaluation for Recovery of Amortized Cost We regularly review our fixed maturity AFS securities (also referred to as “debt securities”) for declines in fair value that we determine to be other-than-temporary. For our debt securities, we generally consider the following to determine whether our debt securities with unrealized losses are other-than-temporarily impaired: The estimated range and average period until recovery; The estimated range and average holding period to maturity; Remaining payment terms of the security; Current delinquencies and nonperforming assets of underlying collateral; Expected future default rates; Collateral value by vintage, geographic region, industry concentration or property type; Subordination levels or other credit enhancements as of the balance sheet date as compared to origination; and Contractual and regulatory cash obligations. For a debt security, if we intend to sell a security, or it is more likely than not we will be required to sell a debt security before recovery of its amortized cost basis and the fair value of the debt security is below amortized cost, we conclude that an OTTI has occurred and the amortized cost is written down to current fair value, with a corresponding charge to realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). If we do not intend to sell a debt security, or it is not more likely than not we will be required to sell a debt security before recovery of its amortized cost basis but the present value of the cash flows expected to be collected is less than the amortized cost of the debt security (referred to as the credit loss), we conclude that an OTTI has occurred and the amortized cost is written down to the estimated recovery value with a corresponding charge to realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss), as this amount is deemed the credit portion of the OTTI. The remainder of the decline to fair value is recorded in other comprehensive income (“OCI”) to unrealized OTTI on fixed maturity AFS securities on our Consolidated Statements of Stockholder’s Equity, as this amount is considered a noncredit (i.e., recoverable) impairment. When assessing our intent to sell a debt security, or if it is more likely than not we will be required to sell a debt security before recovery of its cost basis, we evaluate facts and circumstances such as, but not limited to, decisions to reposition our security portfolio, sales of securities to meet cash flow needs and sales of securities to capitalize on favorable pricing. Management considers the following as part of the evaluation: The current economic environment and market conditions; Our business strategy and current business plans; The nature and type of security, including expected maturities and exposure to general credit, liquidity, market and interest rate risk; Our analysis of data from financial models and other internal and industry sources to evaluate the current effectiveness of our hedging and overall risk management strategies; The current and expected timing of contractual maturities of our assets and liabilities, expectations of prepayments on investments and expectations for surrenders and withdrawals of life insurance policies and annuity contracts; The capital risk limits approved by management; and Our current financial condition and liquidity demands. In order to determine the amount of the credit loss for a debt security, we calculate the recovery value by performing a discounted cash flow analysis based on the current cash flows and future cash flows we expect to recover. The discount rate is the effective interest rate implicit in the underlying debt security. The effective interest rate is the original yield, or the coupon if the debt security was previously impaired. See the discussion below for additional information on the methodology and significant inputs, by security type, that we use to determine the amount of a credit loss. To determine the recovery period of a debt security, we consider the facts and circumstances surrounding the underlying issuer including, but not limited to, the following: Historical and implied volatility of the security; Length of time and extent to which the fair value has been less than amortized cost; Adverse conditions specifically related to the security or to specific conditions in an industry or geographic area; Failure, if any, of the issuer of the security to make scheduled payments; and Recoveries or additional declines in fair value subsequent to the balance sheet date. In periods subsequent to the recognition of an OTTI, the fixed maturity AFS security is accounted for as if it had been purchased on the measurement date of the OTTI. Therefore, for the fixed maturity AFS security, the original discount or reduced premium is reflected in net investment income over the contractual term of the investment in a manner that produces a constant effective yield. To determine recovery value of a corporate bond, CLO or CDO, we perform additional analysis related to the underlying issuer including, but not limited to, the following: Fundamentals of the issuer to determine what we would recover if they were to file bankruptcy versus the price at which the market is trading; Fundamentals of the industry in which the issuer operates; Earnings multiples for the given industry or sector of an industry that the underlying issuer operates within, divided by the outstanding debt to determine an expected recovery value of the security in the case of a liquidation; Expected cash flows of the issuer (e.g., whether the issuer has cash flows in excess of what is required to fund its operations); Expectations regarding defaults and recovery rates; Changes to the rating of the security by a rating agency; and Additional market information (e.g., if there has been a replacement of the corporate debt security). Each quarter, we review the cash flows for the MBS to determine whether or not they are sufficient to provide for the recovery of our amortized cost. We revise our cash flow projections only for those securities that are at most risk for impairment based on current credit enhancement and trends in the underlying collateral performance. To determine recovery value of a MBS, we perform additional analysis related to the underlying issuer including, but not limited to, the following: Discounted cash flow analysis based on the current cash flows and future cash flows we expect to recover; Level of creditworthiness of the home equity loans or residential mortgages that back an RMBS or commercial mortgages that back a CMBS; Susceptibility to fair value fluctuations for changes in the interest rate environment; Susceptibility to reinvestment risks, in cases where market yields are lower than the securities’ book yield earned; Susceptibility to reinvestment risks, in cases where market yields are higher than the book yields earned on a security; Expectations of sale of such a security where market yields are higher than the book yields earned on a security; and Susceptibility to variability of prepayments. When evaluating MBS and mortgage-related ABS, we consider a number of pool-specific factors as well as market level factors when determining whether or not the impairment on the security is temporary or other-than-temporary. The most important factor is the performance of the underlying collateral in the security and the trends of that performance in the prior periods. We use this information about the collateral to forecast the timing and rate of mortgage loan defaults, including making projections for loans that are already delinquent and for those loans that are currently performing but may become delinquent in the future. Other factors used in this analysis include the credit characteristics of borrowers, geographic distribution of underlying loans and timing of liquidations by state. Once default rates and timing assumptions are determined, we then make assumptions regarding the severity of a default if it were to occur. Factors that impact the severity assumption include expectations for future home price appreciation or depreciation, loan size, first lien versus second lien, existence of loan level private mortgage insurance, type of occupancy and geographic distribution of loans. Once default and severity assumptions are determined for the security in question, cash flows for the underlying collateral are projected including expected defaults and prepayments. These cash flows on the collateral are then translated to cash flows on our tranche based on the cash flow waterfall of the entire capital security structure. If this analysis indicates the entire principal on a particular security will not be returned, the security is reviewed for OTTI by comparing the expected cash flows to amortized cost. To the extent that the security has already been impaired or was purchased at a discount, such that the amortized cost of the security is less than or equal to the present value of cash flows expected to be collected, no impairment is required. Otherwise, if the amortized cost of the security is greater than the present value of the cash flows expected to be collected, and the security was not purchased at a discount greater than the expected principal loss, then impairment is recognized. We further monitor the cash flows of all of our fixed maturity AFS securities backed by mortgages on an ongoing basis. We also perform detailed analysis on all of our subprime, Alt-A, non-agency residential MBS and on a significant percentage of our fixed maturity AFS securities backed by pools of commercial mortgages. The detailed analysis includes revising projected cash flows by updating the cash flows for actual cash received and applying assumptions with respect to expected defaults, foreclosures and recoveries in the future. These revised projected cash flows are then compared to the amount of credit enhancement (subordination) in the structure to determine whether the amortized cost of the security is recoverable. If it is not recoverable, we record an impairment of the security. Trading Securities Trading securities consist of fixed maturity securities in designated portfolios, some of which support modified coinsurance (“Modco”) and coinsurance with funds withheld (“CFW”) reinsurance agreements. Investment results for the portfolios that support Modco and CFW reinsurance agreements, including gains and losses from sales, are passed directly to the reinsurers pursuant to contractual terms of the reinsurance agreements. Trading securities are carried at fair value, and changes in fair value and changes in the fair value of embedded derivative liabilities associated with the underlying reinsurance agreements are recorded in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss) as they occur. Equity Securities Equity securities are carried at fair value, and changes in fair value are recorded in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss) as they occur. Equity securities consist primarily of common stock of publicly-traded companies, privately placed securities and mutual fund shares. We measure the fair value of our equity securities based on assumptions used by market participants in pricing the security. The most appropriate valuation methodology is selected based on the specific characteristics of the equity security. Fair values of publicly-traded equity securities are determined using quoted prices in active markets for identical or comparable securities. When quoted prices are not available, we use valuation methodologies most appropriate for the specific asset. Fair values for private placement securities are determined using discounted cash flow, earnings multiple and other valuation models. The fair values of mutual fund shares that transact regularly are based on transaction prices of identical fund shares. Alternative Investments Alternative investments, which consist primarily of investments in limited partnerships (“LPs”), are included in other investments on our Consolidated Balance Sheets. We account for our investments in LPs using the equity method to determine the carrying value. Recognition of alternative investment income is delayed due to the availability of the related financial statements, which are generally obtained from the partnerships’ general partners. As a result, our private equity investments are generally on a three-month delay and our hedge funds are on a one-month delay. In addition, the impact of audit adjustments related to completion of calendar-year financial statement audits of the investees are typically received during the second quarter of each calendar year. Accordingly, our investment income from alternative investments for any calendar-year period may not include the complete impact of the change in the underlying net assets for the partnership for that calendar-year period. Payables for Collateral on Investments When we enter into collateralized financing transactions on our investments, a liability is recorded equal to the cash or non-cash collateral received. This liability is included within payables for collateral on investments on our Consolidated Balance Sheets. Income and expenses associated with these transactions are recorded as investment income and investment expenses within net investment income on our Consolidated Statements of Comprehensive Income (Loss). Changes in payables for collateral on investments are reflected within cash flows from investing activities on our Consolidated Statements of Cash Flows. Mortgage Loans on Real Estate Mortgage loans on real estate consist of commercial and residential mortgage loans and are carried at unpaid principal balances adjusted for amortization of premiums and accretion of discounts and are net of valuation allowances. Interest income is accrued on the principal balance of the loan based on the loan’s contractual interest rate. Premiums and discounts are amortized using the effective yield method over the life of the loan. Interest income and amortization of premiums and discounts are reported in net investment income on our Consolidated Statements of Comprehensive Income (Loss) along with mortgage loan fees, which are recorded as they are incurred. Our policy for commercial mortgage loans is to report loans that are 60 or more days past due, which equates to two or more payments missed, as delinquent. Our policy for residential mortgage loans is to report loans that are 90 or more days past due, which equates to three or more payments missed, as delinquent. We do not accrue interest on loans 90 days past due, and any interest received on these loans is either applied to the principal or recorded in net investment income on our Consolidated Statements of Comprehensive Income (Loss) when received, depending on the assessment of the collectability of the loan. We resume accruing interest once a loan complies with all of its original terms or restructured terms. Mortgage loans deemed uncollectible are charged against the valuation allowance, and subsequent recoveries, if any, are credited to the valuation allowance. We establish a valuation allowance to provide for the risk of credit losses inherent in our portfolio. The valuation allowance includes specific valuation allowances for loans that are deemed to be impaired as well as general valuation allowances for pools of loans with similar risk characteristics where a property risk or market specific risk has not been identified but for which we anticipate a loss may occur. Loans are considered impaired when it is probable that, based upon current information and events, we will be unable to collect all amounts due under the contractual terms of the loan agreement. When we determine that a loan is impaired, a specific valuation allowance is established for the excess carrying value of the loan over its estimated value. The loan’s estimated value is based on: the present value of expected future cash flows discounted at the loan’s effective interest rate; the loan’s observable market price; or the fair value of the loan’s collateral. Changes in valuation allowances are reported in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). General valuation allowances are primarily based on loss history adjusted for current conditions. Valuation allowances are maintained at a level we believe is adequate to absorb estimated probable credit losses. Our periodic evaluation of the adequacy of the valuation allowances is based on historical loss experience, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay (including the timing of future payments), the estimated value of the underlying collateral, composition of the loan portfolio, current economic conditions and other relevant factors. Our commercial loan portfolio is primarily comprised of long-term loans secured by existing commercial real estate. We believe all of the commercial loans in our portfolio share three primary risks: borrower credit worthiness; sustainability of the cash flow of the property; and market risk; therefore, our methods of monitoring and assessing credit risk are consistent for our entire portfolio. For our commercial mortgage loan portfolio, trends in market vacancy and rental rates are incorporated into the analysis that we perform for monitored loans and may contribute to the establishment of (or an increase or decrease in) a valuation allowance. In addition, we review each loan individually in our commercial mortgage loan portfolio on an annual basis to identify emerging risks. We focus on properties that experienced a reduction in debt-service coverage or that have significant exposure to tenants with deteriorating credit profiles. Where warranted, we establish or increase a valuation allowance for a specific loan based upon this analysis. We measure and assess the credit quality of our commercial mortgage loans by using loan-to-value and debt-service coverage ratios. The loan-to-value ratio compares the principal amount of the loan to the fair value at origination of the underlying property collateralizing the loan and is commonly expressed as a percentage. Loan-to-value ratios greater than 100 % indicate that the principal amount is greater than the collateral value. Therefore, all else being equal, a lower loan-to-value ratio generally indicates a higher quality loan. The debt-service coverage ratio compares a property’s net operating income to its debt-service payments. Debt-service coverage ratios of less than 1.0 indicate that property operations do not generate enough income to cover its current debt payments. Therefore, all else being equal, a higher debt-service coverage ratio generally indicates a higher quality loan. Our residential loan portfolio is primarily comprised of first lien mortgages secured by existing residential real estate. In contrast to the commercial mortgage loan portfolio, residential mortgage loans are primarily smaller-balance homogenous loans that share similar risk characteristics. Therefore, these pools of loans are collectively evaluated for inherent credit losses. Such evaluations consider numerous factors, including, but not limited to borrower credit scores, collateral values, loss forecasts, geographic location, delinquency rates and economic trends. These evaluations and assessments are revised as conditions change and new information becomes available, which can cause the valuation allowances to increase or decrease over time as such evaluations are revised. Residential mortgage loan pools exclude loans that have been im |
New Accounting Standards
New Accounting Standards | 12 Months Ended |
Dec. 31, 2019 | |
New Accounting Standards [Abstract] | |
New Accounting Standards | 2. New Accounting Standards Adoption of New Accounting Standards The following table provides a description of our adoption of new ASUs issued by the FASB and the impact of the adoption on our financial statements. ASUs not listed below were assessed and determined to be either not applicable or insignificant in presentation or amount. Standard Description Date of Adoption Effect on Financial Statements or Other Significant Matters ASU 2016-02, Leases and all related amendments This standard establishes a new accounting model for leases. Lessees will recognize most leases on the balance sheet as a ROU 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 ROU 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 adopted this standard and all related amendments, which resulted in the recognition of $ 171 million in ROU assets and $ 176 million in operating lease liabilities reported in other assets and other liabilities, respectively, on our Consolidated Balance Sheets as of January 1, 2019. Comparative periods continue to be measured and presented under historical guidance, and only the period of adoption is subject to this ASU. Also, on transition, we have elected not to reassess: 1) whether expired or existing contracts contain a lease under the new definition of a lease; 2) lease classification for expired or existing leases; and 3) whether previously capitalized initial direct costs would qualify for capitalization under this ASU. Additionally, there is not a significant difference in our pattern of lease expense recognition under this ASU, and there is no impact on cash flows. For more information, see Note 1. 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 adopted the provisions of this ASU, which did not result in a change to our existing practices; therefore, no cumulative effect adjustment was recorded. As such, there was no impact 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 adopted the provisions of this ASU, which did not have an impact on our consolidated financial condition and results of operations. This ASU does result in our modification of certain hedge documentation and effectiveness methods, which we have reflected in applicable disclosures in Note 6. 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 2016-13, Measurement of Credit Losses on Financial Instruments and related amendments These amendments adopt a new model in ASC Topic 326 to measure and recognize credit losses for most financial assets. The ASU requires a financial asset measured at amortized cost to be presented at the net amount expected to be collected over the life of the asset using an allowance for credit losses. Changes in the allowance are charged to earnings. The measurement of expected credit losses is based on relevant information about past events, including historical experience, as well as current economic conditions and reasonable and supportable forecasts that affect the collectability of the financial asset. The method used to measure estimated credit losses for fixed maturity AFS securities will be unchanged from current GAAP; however, the amendments require credit losses to be recognized through an allowance rather than as a reduction to the amortized cost of those securities. The amendments will permit entities to recognize improvements in credit loss estimates on fixed maturity AFS 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 The adoption of this standard and related amendments will result in the recognition of a cumulative effect adjustment that is not expected to be material to our retained earnings, to record allowances for credit losses as of the date of adoption, primarily related to commercial and residential mortgage loans, as well as reinsurance recoverables. ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments – Credit Losses, Topic 815, Derivatives and Hedging and Topic 825, Financial Instruments These amendments clarify the measurement, recognition and presentation of the allowance for credit losses on accrued interest receivable balances; the inclusion of recoveries when estimating the allowance for credit losses; the inclusion of all ASC Topic 944 – Financial Services – Insurance reinsurance recoverables within the scope of ASC 326-20; and provide additional targeted clarifications on the calculation of the allowance for credit losses. These amendments also make targeted clarifications to ASC Topics 815 and 825. Early adoption is permitted. January 1, 2020 Our adoption of ASU 2016-13 and related amendments is discussed above. The adoption of the remainder of this guidance will not have a material impact on our consolidated financial condition and results of operations. ASU 2019-05, Financial Instruments – Credit Losses (Topic 326): Targeted Transition Relief The amendments provide entities that have certain instruments within the scope of Subtopic 326-20, Financial Instruments – Credit Losses – Measured at Amortized Cost , with an option to irrevocably elect the fair value option in Subtopic 825-10, Financial Instruments – Overall , applied on an instrument-by-instrument basis for eligible instruments, upon adoption of ASC Topic 326. January 1, 2020 We will recognize a cumulative effect increase to retained earnings of approximately $ 14 million, after-tax, to elect the fair value option for certain mortgage loans in connection with our adoption of ASC Topic 326. Standard Description Projected Date of Adoption Effect on Financial Statements or Other Significant Matters ASU 2018-12, Targeted Improvements to the Accounting for Long-Duration Contracts and related amendments These amendments make changes to the accounting and reporting for long-duration contracts issued by an insurance entity that will significantly change how insurers account for long-duration contracts, including how they measure, recognize and make disclosures about insurance liabilities and DAC. Under this ASU, insurers will be required to review cash flow assumptions at least annually and update them if necessary. They also will have to make quarterly updates to the discount rate assumptions they use to measure the liability for future policyholder benefits. The ASU creates a new category of market risk benefits (i.e., features that protect the contract holder from capital market risk and expose the insurer to that risk) that insurers will have to measure at fair value. The ASU provides various transition methods by topic that entities may elect upon adoption. The ASU is currently effective January 1, 2022, and early adoption is permitted. January 1, 2022 We are currently evaluating the impact of adopting this ASU on our consolidated financial condition and results of operations. |
Acquisition
Acquisition | 12 Months Ended |
Dec. 31, 2019 | |
Acquisition [Abstract] | |
Acquisition | 3 . Acquisition On May 1, 2018 , LNC and LNL completed the acquisition from Liberty Mutual Insurance Company of 100 % of the capital stock of Liberty Life, an operator of a group benefits business (the “Liberty Group Business”) and an individual life and individual and group annuity business (the “Liberty Life Business”). The acquisition expanded the scale and capabilities of the Group Protection business while further diversifying the Company’s sources of earnings. In connection with the acquisition and pursuant to the Master Transaction Agreement (“MTA”), dated January 18, 2018, which is attached as Exhibit 10.3 to this Form 10-K, Liberty Life sold the Liberty Life Business on May 1, 2018, by entering into reinsurance agreements and related ancillary documents (including administrative services agreements and transition services agreements) with Protective Life Insurance Company and its wholly-owned subsidiary, Protective Life and Annuity Insurance Company (together with Protective Life Insurance Company, “Protective”), providing for the reinsurance and administration of the Liberty Life Business. We recognized $ 85 million of acquisition-related costs, pre-tax, for the year ended December 31, 2018. These costs were included in commissions and other expenses on our Consolidated Statements of Comprehensive Income (Loss). In the year following the May 1, 2018 acquisition date, we adjusted assets acquired by $( 5 ) million and liabilities acquired by $ 23 million for an increase in goodwill of $ 28 million. Under the terms of the MTA, a final balance sheet will be agreed upon at a later date. The following table presents the adjusted fair values (in millions) of the net assets acquired related to the Liberty Group Business: Adjusted Fair Value Assets Investments $ 2,493 Mortgage loans on real estate 658 Cash and invested cash 107 Reinsurance recoverables 76 Premiums and fees receivable 83 Accrued investment income 24 Other intangible assets acquired 640 Other assets acquired 142 Separate account assets 99 Total assets acquired $ 4,322 Liabilities Future contract benefits $ 2,930 Other contract holder funds 46 Other liabilities acquired 140 Separate account liabilities 99 Total liabilities assumed $ 3,215 Net identifiable assets acquired $ 1,107 Goodwill 410 Net assets acquired $ 1,517 Financial Information Since the acquisition date of May 1, 2018, the revenues and net income of the business acquired have been included in our Consolidated Statements of Comprehensive Income (Loss) in the Group Protection segment and were $ 1.5 billion and $ 36 million, respectively, for the period ended December 31, 2018. The following unaudited pro forma condensed consolidated results of operations of the Company assume that the acquisition of Liberty Life was completed on January 1, 2017 (in millions): For the Years Ended December 31, 2018 2017 Revenue $ 16,097 $ 15,080 Net income 1,642 2,034 Pro forma adjustments include the revenue and net income of the acquired business for each period as well as amortization of identifiable intangible assets acquired and the fair value adjustment to acquired insurance reserves and investments. Other pro forma adjustments include the impact of reflecting acquisition and integration costs and investment expenses directly attributable to the business combination in 2017 instead of in 2018. Pro forma adjustments do not include retrospective adjustments to defer and amortize acquisition costs as would be recorded under our accounting policy. |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2019 | |
Variable Interest Entities [Abstract] | |
Variable Interest Entities | 4. Variable Interest Entities Unconsolidated VIEs Reinsurance Related Notes Effective October 1, 2017, our captive reinsurance subsidiary, the Lincoln Reinsurance Company of Vermont VI, restructured the $ 275 million, long-term surplus note which was originally issued to a non-affiliated VIE in October 2015 in exchange for two corporate bond AFS securities of like principal and duration. The activities of the VIE are primarily to acquire, hold and issue notes and loans and to pay and collect interest on the notes and loans. The outstanding principal balance of the long-term surplus note is variable in nature; moving concurrently with any variability in the face amount of the corporate bond AFS securities. We have concluded that we are not the primary beneficiary of the non-affiliated VIE because we do not have power over the activities that most significantly affect its economic performance. As of December 31, 2019, the principal balance of the long-term surplus note was zero and we do not currently have any exposure to this VIE. Structured Securities Through our investment activities, we make passive investments in structured securities issued by VIEs for which we are not the manager. These structured securities include our RMBS, CMBS, CLOs and CDOs. We have not provided financial or other support with respect to these VIEs other than our original investment. We have determined that we are not the primary beneficiary of these VIEs due to the relative size of our investment in comparison to the principal amount of the structured securities issued by the VIEs and the level of credit subordination that reduces our obligation to absorb losses or right to receive benefits. Our maximum exposure to loss on these structured securities is limited to the amortized cost for these investments. We recognize our variable interest in these VIEs at fair value on our Consolidated Balance Sheets. For information about these structured securities, see Note 5. Limited Partnerships and Limited Liability Companies We invest in certain LPs and limited liability companies (“LLCs”), including qualified affordable housing projects, that we have concluded are VIEs. We do not hold any substantive kick-out or participation rights in the LPs and LLCs, and we do not receive any performance fees or decision maker fees from the LPs and LLCs. Based on our analysis of the LPs and LLCs, we are not the primary beneficiary of the VIEs as we do not have the power to direct the most significant activities of the LPs and LLCs. The carrying amounts of our investments in the LPs and LLCs are recognized in other investments on our Consolidated Balance Sheets and were $ 1.9 billion and $ 1.7 billion as of December 31, 2019 and 2018, respectively. Included in these carrying amounts are our investments in qualified affordable housing projects, which were $ 13 million and $ 20 million as of December 31, 2019 and 2018, respectively. We do not have any contingent commitments to provide additional capital funding to these qualified affordable housing projects. We receive returns from these qualified affordable housing projects in the form of income tax credits and other tax benefits, which are recognized in federal income tax expense (benefit) on our Consolidated Statements of Comprehensive Income (Loss) and were $ 2 million and $ 1 million for the years ended December 31, 2019 and 2018, respectively. 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 December 31, 2019. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2019 | |
Investments [Abstract] | |
Investments | 5. Investments Fixed Maturity AFS Securities The amortized cost, gross unrealized gains, losses and OTTI and fair value of fixed maturity AFS securities (in millions) were as follows: As of December 31, 2019 Amortized Gross Unrealized Fair Cost Gains Losses OTTI (1) Value Fixed maturity AFS securities: Corporate bonds $ 78,875 $ 9,071 $ 172 $ ( 5 ) $ 87,779 U.S. government bonds 355 48 - - 403 State and municipal bonds 4,605 1,087 7 - 5,685 Foreign government bonds 326 62 - - 388 RMBS 2,820 179 9 ( 18 ) 3,008 CMBS 1,038 45 1 ( 1 ) 1,083 ABS 4,803 62 17 ( 35 ) 4,883 Hybrid and redeemable preferred securities 485 79 20 - 544 Total fixed maturity AFS securities $ 93,307 $ 10,633 $ 226 $ ( 59 ) $ 103,773 As of December 31, 2018 Amortized Gross Unrealized Fair Cost Gains Losses OTTI (1) Value Fixed maturity AFS securities: Corporate bonds $ 78,837 $ 2,871 $ 2,167 $ ( 8 ) $ 79,549 U.S. government bonds 361 27 2 - 386 State and municipal bonds 4,498 703 17 - 5,184 Foreign government bonds 402 42 - - 444 RMBS 3,099 113 61 ( 13 ) 3,164 CMBS 810 6 16 ( 3 ) 803 ABS 2,644 45 30 ( 19 ) 2,678 Hybrid and redeemable preferred securities 568 44 33 - 579 Total fixed maturity AFS securities $ 91,219 $ 3,851 $ 2,326 $ ( 43 ) $ 92,787 (1) Includes unrealized (gains) and losses on credit-impaired securities related to changes in the fair value of such securities subsequent to the impairment measurement date. The amortized cost and fair value of fixed maturity AFS securities by contractual maturities (in millions) as of December 31, 2019, were as follows: Amortized Fair Cost Value Due in one year or less $ 2,714 $ 2,699 Due after one year through five years 15,022 15,578 Due after five years through ten years 17,440 18,854 Due after ten years 49,470 57,668 Subtotal 84,646 94,799 Structured securities (RMBS, CMBS, ABS) 8,661 8,974 Total fixed maturity AFS securities $ 93,307 $ 103,773 Actual maturities may differ from contractual maturities because issuers may have the right to call or pre-pay obligations. The fair value and gross unrealized losses, including the portion of OTTI recognized in OCI, of fixed maturity AFS securities (dollars in millions), aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, were as follows: As of December 31, 2019 Less Than or Equal Greater Than to Twelve Months Twelve Months Total Gross Gross Gross Unrealized Unrealized Unrealized Fair Losses and Fair Losses and Fair Losses and Value OTTI Value OTTI Value OTTI Fixed maturity AFS securities: Corporate bonds $ 2,827 $ 44 $ 1,381 $ 131 $ 4,208 $ 175 State and municipal bonds 316 7 18 - 334 7 RMBS 471 9 15 - 486 9 CMBS 48 1 4 - 52 1 ABS 1,791 8 300 9 2,091 17 Hybrid and redeemable preferred securities 29 1 102 19 131 20 Total fixed maturity AFS securities $ 5,482 $ 70 $ 1,820 $ 159 $ 7,302 $ 229 Total number of fixed maturity AFS securities in an unrealized loss position 882 As of December 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 $ 30,947 $ 1,464 $ 7,023 $ 704 $ 37,970 $ 2,168 U.S. government bonds 70 1 23 1 93 2 State and municipal bonds 376 7 92 10 468 17 RMBS 436 9 796 55 1,232 64 CMBS 470 11 82 5 552 16 ABS 1,237 23 239 16 1,476 39 Hybrid and redeemable preferred securities 94 6 131 27 225 33 Total fixed maturity AFS securities $ 33,630 $ 1,521 $ 8,386 $ 818 $ 42,016 $ 2,339 Total number of fixed maturity AFS securities in an unrealized loss position 3,360 The fair value, gross unrealized losses, the portion of OTTI recognized in OCI (in millions) and number of fixed maturity AFS securities where the fair value had declined and remained below amortized cost by greater than 20% were as follows: As of December 31, 2019 Number Fair Gross Unrealized of Value Losses OTTI Securities (1) Less than six months $ 15 $ 5 $ - 7 Six months or greater, but less than nine months 10 3 - 4 Twelve months or greater 130 74 - 31 Total $ 155 $ 82 $ - 42 As of December 31, 2018 Number Fair Gross Unrealized of Value Losses OTTI Securities (1) Less than six months $ 389 $ 122 $ 1 44 Six months or greater, but less than nine months 96 49 - 11 Nine months or greater, but less than twelve months 11 8 - 2 Twelve months or greater 138 70 8 32 Total $ 634 $ 249 $ 9 89 (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 decreased by $ 2.1 billion for the year ended December 31, 2019. As discussed further below, we believe the unrealized loss position as of December 31, 2019, did not represent OTTI as (i) we did not intend to sell these fixed maturity AFS securities; (ii) it is not more likely than not that we will be required to sell the fixed maturity AFS securities before recovery of their amortized cost basis; 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 December 31, 2019, management believes we have the ability to generate adequate amounts of cash from our normal operations (e.g., insurance premiums, fee income and investment income) to meet cash requirements with a prudent margin of safety without requiring the sale of our temporarily-impaired securities. As of December 31, 2019, 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 December 31, 2019, the unrealized losses associated with our 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 December 31, 2019, 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 Years Ended December 31, 2019 2018 2017 Balance as of beginning-of-year $ 337 $ 358 $ 411 Increases attributable to: Credit losses on securities for which an OTTI was not previously recognized 13 5 13 Credit losses on securities for which an OTTI was previously recognized 2 2 7 Decreases attributable to: Securities sold, paid down or matured ( 148 ) ( 28 ) ( 73 ) Balance as of end-of-year $ 204 $ 337 $ 358 During 2019, 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. Determination of Credit Losses on Corporate Bonds As of December 31, 2019 and 2018, we reviewed our corporate bond portfolio for potential shortfalls 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 December 31, 2019 and 2018, 96 % of the fair value of our corporate bond portfolio was rated investment grade. As of December 31, 2019 and 2018, the portion of our corporate bond portfolio rated below investment grade had an amortized cost of $ 3.1 billion and a fair value of $ 3.1 billion and $ 2.9 billion, respectively. Based upon the analysis discussed above, we believed as of December 31, 2019 and 2018, that we would recover the amortized cost of each corporate bond. Determination of Credit Losses on MBS and ABS As of December 31, 2019 and 2018, default rates were projected by considering underlying MBS and ABS loan performance and collateral type. Projected default rates on existing delinquencies vary 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. Trading Securities Trading securities at fair value (in millions) consisted of the following: As of December 31, 2019 2018 Fixed maturity securities: Corporate bonds $ 2,877 $ 1,559 U.S. government bonds 45 43 State and municipal bonds 16 16 Foreign government bonds 45 23 RMBS 169 78 CMBS 163 7 ABS 1,238 121 Hybrid and redeemable preferred securities 49 22 Total trading securities $ 4,602 $ 1,869 The portion of the market adjustment for trading gains and losses recognized in realized gain (loss) that relate to trading securities still held as of December 31, 2019, 2018 and 2017, was $( 225 ) million, $( 55 ) million and $ 8 million, respectively. Mortgage Loans on Real Estate The following provides the current and past due composition of our mortgage loans on real estate (in millions): As of December 31, 2019 As of December 31, 2018 Commercial Residential Total Commercial Residential Total Current $ 15,525 $ 659 $ 16,184 $ 12,959 $ 230 $ 13,189 30 to 59 days past due 3 27 30 - 9 9 60 to 89 days past due - 10 10 - 1 1 90 or more days past due - 16 16 - - - Valuation allowance - ( 2 ) ( 2 ) - - - Unamortized premium (discount) ( 17 ) 23 6 ( 17 ) 8 ( 9 ) Total carrying value $ 15,511 $ 733 $ 16,244 $ 12,942 $ 248 $ 13,190 As of December 31, 2019, we had 38 residential mortgage loans that were either delinquent or in foreclosure. As of December 31, 2018, we had no loans that were either delinquent or in foreclosure. For our commercial mortgage loans, there was one specifically identified impaired loan with a carrying value of less than $ 1 million as of December 31, 2019. There were no specifically identified impaired commercial mortgage loans as of December 31, 2018. For our residential mortgage loans, there were four specifically identified impaired loans with an aggregate carrying value of $ 1 million as of December 31, 2019. There were no specifically identified impaired residential mortgage loans as of December 31, 2018. The general allowance established on residential mortgage loans was $ 2 million and less than $ 1 million as of December 31, 2019 and 2018, respectively. We establish a valuation allowance to provide for the risk of credit losses inherent in our portfolio. The valuation allowance includes specific valuation allowances for loans that are deemed to be impaired as well as general valuation allowances for pools of loans with similar risk characteristics where a property risk or market specific risk has not been identified but for which we anticipate a loss has occurred. The changes in the valuation allowance associated with impaired commercial mortgage loans on real estate (in millions) were as follows: For the Years Ended December 31, 2019 2018 2017 Valuation Allowance Balance as of beginning-of-year $ - $ 3 $ 2 Additions - - 1 Charge-offs, net of recoveries - ( 3 ) - Balance as of end-of-year $ - $ - $ 3 Additional information related to impaired commercial mortgage loans on real estate (in millions) was as follows: For the Years Ended December 31, 2019 2018 2017 Average carrying value for impaired commercial mortgage loans on real estate $ - $ 5 $ 6 Interest income recognized on impaired commercial mortgage loans on real estate - 1 - Interest income collected on impaired commercial mortgage loans on real estate - 1 - As described in Note 1, we use loan-to-value and debt-service coverage ratios as credit quality indicators for our commercial mortgage loans on real estate (dollars in millions) as follows: As of December 31, 2019 As of December 31, 2018 Debt- Debt- Service Service Carrying % of Coverage Carrying % of Coverage Loan-to-Value Ratio Value Total Ratio Value Total Ratio Less than 65% $ 14,121 91.0 % 2.35 $ 11,656 90.1 % 2.30 65% to 74% 1,389 9.0 % 1.88 1,234 9.5 % 1.76 75% to 100% 1 0.0 % 1.09 52 0.4 % 1.03 Total $ 15,511 100.0 % $ 12,942 100.0 % As described in Note 1, we use loan performance status as the primary credit quality indicator for our residential mortgage loans on real estate (dollars in millions) as follows: As of December 31, 2019 As of December 31, 2018 Carrying % of Carrying % of Performance Indicator Value Total Value Total Performing $ 716 97.7 % $ 247 99.6 % Nonperforming 17 2.3 % 1 0.4 % Total $ 733 100.0 % $ 248 100.0 % Our commercial mortgage loan portfolio is geographically diversified with the largest concentrations in California, which accounted for 24 % and 23 % of commercial mortgage loans on real estate as of December 31, 2019 and 2018, respectively, and Texas, which accounted for 11 % and 12 % of commercial mortgage loans on real estate as of December 31, 2019 and 2018, respectively. Our residential mortgage loan portfolio is geographically diversified with the largest concentrations in California, which accounted for 34 % of residential mortgage loans on real estate as of December 31, 2019 and 2018, and Florida, which accounted for 20 % and 19 % of residential mortgage loans on real estate as of December 31, 2019 and 2018, respectively. Alternative Investments As of December 31, 2019 and 2018, alternative investments included investments in 256 and 234 different partnerships, respectively, and the portfolios represented approximately 1 % of our total investments. Net Investment Income The major categories of net investment income (in millions) on our Consolidated Statements of Comprehensive Income (Loss) were as follows: For the Years Ended December 31, 2019 2018 2017 Fixed maturity AFS securities $ 4,214 $ 4,129 $ 4,048 Equity AFS securities - - 12 Trading securities 187 79 88 Equity securities 4 4 - Mortgage loans on real estate 626 492 433 Real estate 1 1 1 Policy loans 128 122 134 Invested cash 33 23 11 Commercial mortgage loan prepayment and bond make-whole premiums 115 78 138 Alternative investments 24 222 165 Consent fees 7 4 6 Other investments 27 24 5 Investment income 5,366 5,178 5,041 Investment expense ( 404 ) ( 334 ) ( 281 ) Net investment income $ 4,962 $ 4,844 $ 4,760 Realized Gain (Loss) Details underlying realized gain (loss) (in millions) reported on our Consolidated Statements of Comprehensive Income (Loss) were as follows: For the Years Ended December 31, 2019 2018 2017 Fixed maturity AFS securities: Gross gains $ 44 $ 36 $ 17 Gross losses ( 70 ) ( 80 ) ( 43 ) Gross OTTI ( 15 ) ( 7 ) ( 20 ) Equity AFS securities: Gross gains - - 6 Gain (loss) on other investments (1) ( 15 ) ( 15 ) ( 10 ) Associated amortization of DAC, VOBA, DSI and DFEL and changes in other contract holder funds ( 13 ) ( 22 ) ( 21 ) Total realized gain (loss) related to certain investments ( 69 ) ( 88 ) ( 71 ) Realized gain (loss) on the mark-to-market on certain instruments (2) ( 426 ) 251 ( 155 ) Indexed annuity and IUL contracts net derivatives results: (3) Gross gain (loss) ( 80 ) ( 51 ) ( 22 ) Associated amortization of DAC, VOBA, DSI and DFEL 2 12 ( 2 ) GLB fees ceded to LNBAR and attributed fees: Gross gain (loss) ( 223 ) ( 184 ) ( 174 ) Associated amortization of DAC, VOBA, DSI and DFEL ( 32 ) ( 32 ) ( 32 ) Total realized gain (loss) $ ( 828 ) $ ( 92 ) $ ( 456 ) (1) Includes market adjustments on equity securities still held of $( 4 ) million and $( 17 ) million for the years ended December 31, 2019 and 2018, respectively. (2) Represents changes in the fair values of certain derivative investments (not including those associated with our variable and indexed annuity and indexed variable universal life insurance (“IUL”) contracts net derivatives results), reinsurance related embedded derivatives and trading securities. See Notes 1 and 9 for information regarding Modco. (3) Represents the net difference between the change in fair value of the index options that we hold and the change in the fair value of the embedded derivative liabilities of our indexed annuity and IUL contracts along with changes in the fair value of embedded derivative liabilities related to index options we may purchase or sell in the future to hedge contract holder index allocations applicable to future reset periods for our indexed annuity products. Details underlying write-downs taken as a result of OTTI that were recognized in net income (loss) and included in realized gain (loss) on fixed maturity AFS securities above and the portion of OTTI recognized in OCI (in millions) were as follows: For the Years Ended December 31, 2019 2018 2017 OTTI Recognized in Net Income (Loss) Fixed maturity AFS securities: Corporate bonds $ ( 13 ) $ ( 5 ) $ ( 13 ) State and municipal bonds - - ( 1 ) RMBS ( 1 ) ( 1 ) ( 2 ) CMBS - - ( 2 ) ABS ( 1 ) ( 1 ) ( 2 ) Gross OTTI recognized in net income (loss) ( 15 ) ( 7 ) ( 20 ) Associated amortization of DAC, VOBA, DSI and DFEL - - 2 Net OTTI recognized in net income (loss) $ ( 15 ) $ ( 7 ) $ ( 18 ) OTTI Recognized in OCI Gross OTTI recognized in OCI $ 14 $ - $ - Change in DAC, VOBA, DSI and DFEL ( 1 ) - - Net OTTI recognized in OCI $ 13 $ - $ - Payables for Collateral on Investments The carrying value of the payables for collateral on investments included on our Consolidated Balance Sheets and the fair value of the related investments or collateral (in millions) consisted of the following: As of December 31, 2019 As of December 31, 2018 Carrying Fair Carrying Fair Value Value Value Value Collateral payable for derivative investments (1) $ 1,383 $ 1,383 $ 616 $ 616 Securities pledged under securities lending agreements (2) 114 110 88 85 Securities pledged under repurchase agreements (3) - - 152 157 Investments pledged for Federal Home Loan Bank of Indianapolis (“FHLBI”) (4) 3,580 5,480 3,930 5,923 Total payables for collateral on investments $ 5,077 $ 6,973 $ 4,786 $ 6,781 (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. The collateral requirements are generally 80 % 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. As of December 31, 2019, we were not participating in any open repurchase agreements. (4) Our pledged investments for FHLBI are included in fixed maturity AFS securities and mortgage loans on real estate on our Consolidated Balance Sheets. The collateral requirements are generally 105 % to 115 % of the fair value for fixed maturity AFS securities and 155 % to 175 % of the fair value for mortgage loans on real estate. The cash received in these transactions is primarily invested in cash and invested cash or fixed maturity AFS securities. Increase (decrease) in payables for collateral on investments (in millions) consisted of the following: For the Years Ended December 31, 2019 2018 2017 Collateral payable for derivative investments $ 767 $ ( 85 ) $ ( 112 ) Securities pledged under securities lending agreements 26 ( 134 ) 5 Securities pledged under repurchase agreements ( 152 ) ( 379 ) 1 Investments pledged for FHLBI ( 350 ) 1,030 ( 450 ) Total increase (decrease) in payables for collateral on investments $ 291 $ 432 $ ( 556 ) We have elected not to offset our securities lending and repurchase agreements transactions in our financial statements. The remaining contractual maturities of securities lending and repurchase agreements transactions accounted for as secured borrowings (in millions) were as follows: As of December 31, 2019 Overnight and Continuous Up to 30 Days 30 - 90 Days Greater Than 90 Days Total Securities Lending Corporate bonds $ 114 $ - $ - $ - $ 114 Total gross secured borrowings $ 114 $ - $ - $ - $ 114 As of December 31, 2018 Overnight and Continuous Up to 30 Days 30 - 90 Days Greater Than 90 Days Total Securities Lending Corporate bonds $ 88 $ - $ - $ - $ 88 Repurchase Agreements Corporate bonds - - - 152 152 Total gross secured borrowings $ 88 $ - $ - $ 152 $ 240 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 December 31, 2019, the fair value of all collateral received that we are permitted to sell or re-pledge was $ 25 million. As of December 31, 2019, we have re-pledged $ 25 million of this collateral to cover initial margin and over-the-counter collateral requirements on certain derivative investments. Investment Commitments As of December 31, 2019, our investment commitments were $ 2.0 billion, which included $ 1.0 billion of LPs, $ 544 million of mortgage loans on real estate and $ 407 million of private placement securities. Concentrations of Financial Instruments As of December 31, 2019 and 2018, 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 $ 1.3 billion and $ 1.4 billion, respectively, or 1 % of total investments, and our investments in securities issued by the Federal National Mortgage Association with a fair value of $ 1.0 billion and $ 1.2 billion, respectively, or 1 % of total investments. These concentrations include fixed maturity AFS, trading and equity securities. As of December 31, 2019 and 2018, our most significant investments in one industry were our investments in securities in the financial services industry with a fair value of $ 18.2 billion and $ 16.0 billion, respectively, or 14 % of total investments, and our investments in securities in the consumer non-cyclical industry with a fair value of $ 15.4 billion and $ 14.3 billion, respectively, or 12 % and 13 %, respectively, of total investments. These concentrations include fixed maturity AFS, trading and equity securities. |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2019 | |
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. We assess these risks by continually identifying and monitoring changes in our exposures that may adversely affect expected future cash flows and by evaluating hedging opportunities. Derivative activities are monitored by various management committees. The committees are responsible for overseeing the implementation of various hedging strategies that are developed through the analysis of financial simulation models and other internal and industry sources. The resulting hedging strategies are incorporated into our overall risk management strategies. See Note 1 for a detailed discussion of the accounting treatment for derivative instruments. See Note 20 for additional disclosures related to the fair value of our derivative instruments and Note 4 for derivative instruments related to our consolidated VIEs. We adopted ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities, in 2019. See Note 2 for additional information. Interest Rate Contracts We use derivative instruments as part of our interest rate risk management strategy. These instruments are economic hedges unless otherwise noted and include: Forward-Starting Interest Rate Swaps We use forward-starting interest rate swaps designated and qualifying as cash flow hedges to hedge our exposure to interest rate fluctuations related to the forecasted purchases of certain assets. We also use forward-starting interest rate swaps to hedge the interest rate exposure within our life products related to the forecasted purchases of certain assets. Interest Rate Cap Corridor s We use interest rate cap corridors to provide a level of protection from the effect of rising interest rates for certain life insurance products and annuity contracts. Interest rate cap corridors involve purchasing an interest rate cap at a specific cap rate and selling an interest rate cap with a higher cap rate. For each corridor, the amount of quarterly payments, if any, is determined by the rate at which the underlying index rate resets above the original capped rate. The corridor limits the benefit the purchaser can receive as the related interest rate index rises above the higher capped rate. There is no additional liability to us other than the purchase price associated with the interest rate cap corridor. Interest Rate Futures We use interest rate futures contracts to hedge the liability exposure on certain options in variable annuity products. These futures contracts require payment between our counterparty and us on a daily basis for changes in the futures index price. Interest Rate Swap Agreements We use interest rate swap agreements to hedge the liability exposure on certain options in variable annuity products. We also use interest rate swap agreements designated and qualifying as cash flow hedges to hedge the interest rate risk of floating-rate bond coupon payments by replicating a fixed-rate bond. Finally, we use interest rate swap agreements designated and qualifying as fair value hedges to hedge against changes in the fair value of certain fixed maturity securities due to interest rate risks. Reverse Treasury Locks We use reverse treasury locks designated and qualifying as cash flow hedges to hedge the interest rate exposure related to the anticipated purchase of fixed-rate securities or the anticipated future cash flows of floating-rate fixed maturity securities due to changes in interest rates. These derivatives are primarily structured to hedge interest rate risk inherent in the assumptions used to price certain liabilities. Foreign Currency Contracts We use derivative instruments as part of our foreign currency risk management strategy. These instruments are economic hedges unless otherwise noted and include: Currency Futures We use currency futures to hedge foreign exchange risk associated with certain options in variable annuity products. Currency futures exchange one currency for another at a specified date in the future at a specified exchange rate. Foreign Currency Swaps We use foreign currency swaps to hedge foreign exchange risk of investments in fixed maturity securities denominated in foreign currencies. A foreign currency swap is a contractual agreement to exchange one currency for another at specified dates in the future at a specified exchange rate. We also use foreign currency swaps designated and qualifying as cash flow hedges to hedge foreign exchange risk of investments in fixed maturity securities denominated in foreign currencies. Foreign Currency Forwards We use foreign currency forwards to hedge foreign exchange risk of investments in fixed maturity securities denominated in foreign currencies. A foreign currency forward is a contractual agreement to exchange one currency for another at specified dates in the future at a specified current exchange rate. Equity Market Contracts We use derivative instruments as part of our equity market risk management strategy that are economic hedges and include: Call Options Based on the S&P 500 and Other Indices We use call options to hedge the liability exposure on certain options in variable annuity products. Our indexed annuity and IUL contracts permit the holder to elect an interest rate return or an equity market component, where interest credited to the contracts is linked to the performance of the Standard & Poor's 500 Index (“S&P 500”) and other indices. Contract holders may elect to rebalance index options at renewal dates. At the end of each indexed term, which can be up to 6 years, we have the opportunity to re-price the indexed component by establishing participation rates, caps, spreads and specified rates, subject to contractual guarantees. We use call options that are highly correlated to the portfolio allocation decisions of our contract holders, such that we are economically hedged with respect to equity returns for the current reset period. Consumer Price Index Swaps We use consumer price index swaps to hedge the liability exposure on certain options in fixed annuity products. Consumer price index swaps are contracts entered into at no cost and whose payoff is the difference between the consumer price index inflation rate and the fixed-rate determined as of inception. Equity Futures We use equity futures contracts to hedge the liability exposure on certain options in variable annuity products. These futures contracts require payment between our counterparty and us on a daily basis for changes in the futures index price. Put Options We use put options to hedge the liability exposure on certain options in variable annuity products. Put options are contracts that require the seller to pay the buyer at a specified future date the amount, if any, by which a specified equity index is less than the strike rate stated in the agreement, applied to a notional amount. Total Return Swaps We use total return swaps to hedge the liability exposure on certain options in variable annuity products. In addition, we use total return swaps to hedge a portion of the liability related to our deferred compensation plans. We receive the total return on a portfolio of indexes and pay a floating-rate of interest. Credit Contracts We use derivative instruments as part of our credit risk management strategy that are economic hedges and include: Credit Default Swaps – Buying Protection We use credit default swaps to hedge the liability exposure on certain options in variable annuity products. We buy credit default swaps to hedge against a drop in bond prices due to credit concerns of certain bond issuers. A credit default swap allows us to put the bond back to the counterparty at par upon a default event by the bond issuer. A default event is defined as bankruptcy, failure to pay, obligation acceleration or restructuring. Credit Default Swaps – Selling Protection We use credit default swaps to hedge the liability exposure on certain options in variable annuity products. We sell credit default swaps to offer credit protection to contract holders and investors. The credit default swaps hedge the contract holders and investors against a drop in bond prices due to credit concerns of certain bond issuers. A credit default swap allows the investor to put the bond back to us at par upon a default event by the bond issuer. A default event is defined as bankruptcy, failure to pay, obligation acceleration or restructuring. Embedded Derivatives We have embedded derivatives that include: GLB Reserves Embedded Derivatives We are exposed to risk and income statement volatility caused by changes in the equity markets, interest rates and volatility associated with GLBs offered in our variable annuity products, including products with GWB and GIB features. These GLB features are reinsured among various reinsurance counterparties on either a Modco or coinsurance basis. We cede a portion of the GLB features to LNBAR on a funds withheld Modco basis. The funds withheld arrangement includes a dynamic hedging strategy designed to mitigate selected risks. Changes in the value of the hedge contracts due to changes in equity markets, interest rates and implied volatilities hedge the changes in embedded derivative GLB reserves assumed by LNBAR caused by those same factors. The hedge positions are rebalanced based upon changes in these factors as needed. While we actively manage the hedge positions, these hedge positions may not be totally effective in offsetting changes in the embedded derivative reserve assumed by LNBAR due to, among other things, differences in timing between when a market exposure changes and corresponding changes to the hedge positions, extreme swings in the equity markets and interest rates, market volatility, contract holder behavior, divergence between the performance of the underlying funds and the hedging indices, divergence between the actual and expected performance of the hedge instruments and our ability to purchase hedging instruments at prices consistent with the desired risk and return trade-off. However, the hedging results do not impact LNL due to a funds withheld agreement with LNBAR, which causes the financial impact of the derivatives, as well as the cash flow activity, to be reflected on LNBAR. Certain features of these guarantees have elements of both insurance benefits accounted for under the Financial Services – Insurance – Claim Costs and Liabilities for Future Policy Benefits Subtopic of the FASB ASC (“benefit reserves”) and embedded derivatives accounted for under the Derivatives and Hedging and the Fair Value Measurements and Disclosures Topics of the FASB ASC (“embedded derivative reserves”). We calculate the value of the benefit reserves and the embedded derivative reserves based on the specific characteristics of each GLB feature. Indexed Annuity and IUL Contracts Embedded Derivatives Our indexed annuity and IUL contracts permit the holder to elect an interest rate return or an equity market component, where interest credited to the contracts is linked to the performance of the S&P 500 or other indices. Contract holders may elect to rebalance index options at renewal dates. At the end of each indexed term, which can be up to 6 years, we have the opportunity to re-price the indexed component by establishing participation rates, caps, spreads and specified rates, subject to contractual guarantees. We use options that are highly correlated to the portfolio allocation decisions of our contract holders, such that we are economically hedged with respect to equity returns for the current reset period. Reinsurance Related Embedded Derivatives We have certain Modco and coinsurance with funds withheld reinsurance agreements with embedded derivatives related to the withheld assets of the related funds. These derivatives are considered total return swaps with contractual returns that are attributable to various assets and liabilities associated with these reinsurance agreements. We have derivative instruments with off-balance-sheet risks whose notional or contract amounts exceed the related credit exposure. Outstanding derivative instruments with off-balance-sheet risks (in millions) were as follows: As of December 31, 2019 As of December 31, 2018 Notional Fair Value Notional Fair Value Amounts Asset Liability Amounts Asset Liability Qualifying Hedges Cash flow hedges: Interest rate contracts (1) $ 1,174 $ 108 $ 12 $ 1,528 $ 33 $ 9 Foreign currency contracts (1) 2,874 191 51 2,326 167 39 Total cash flow hedges 4,048 299 63 3,854 200 48 Fair value hedges: Interest rate contracts (1) 546 - 202 553 - 137 Non-Qualifying Hedges Interest rate contracts (1) 112,921 1,082 219 100,628 464 138 Foreign currency contracts (1) 262 1 3 47 - - Equity market contracts (1) 43,283 1,442 664 30,273 676 162 Credit contracts (1) 55 - - - - - Embedded derivatives: GLB direct (2) - 450 - - 123 - GLB ceded (2) (3) - 60 510 - 72 196 Reinsurance related (4) - - 375 - 188 - Indexed annuity and IUL contracts (2) (5) - 927 2,585 - 902 1,305 Total derivative instruments $ 161,115 $ 4,261 $ 4,621 $ 135,355 $ 2,625 $ 1,986 (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 December 31, 2019 Less Than 1 – 5 6 – 10 11 – 30 Over 30 1 Year Years Years Years Years Total Interest rate contracts (1) $ 11,341 $ 53,011 $ 20,948 $ 28,841 $ 500 $ 114,641 Foreign currency contracts (2) 218 383 961 1,473 101 3,136 Equity market contracts 27,594 7,720 3,762 13 4,194 43,283 Credit contracts - 55 - - - 55 Total derivative instruments with notional amounts $ 39,153 $ 61,169 $ 25,671 $ 30,327 $ 4,795 $ 161,115 (1) As of December 31, 2019, the latest maturity date for which we were hedging our exposure to the variability in future cash flows for these instruments was November 24, 2021 . (2) As of December 31, 2019, the latest maturity date for which we were hedging our exposure to the variability in future cash flows for these instruments was February 26, 2050 . The following amounts (in millions) were recorded on the Consolidated Balance Sheets related to cumulative basis adjustments for fair value hedges: As of December 31, 2019 Cumulative Fair Value Hedging Adjustment Included Amortized Cost in the Amortized of the Hedged Cost of the Hedged Assets (Liabilities) Assets (Liabilities) Line Items in which the Hedged Items are Recorded Fixed maturity AFS securities, at fair value $ 776 $ 202 The change in our unrealized gain (loss) on derivative instruments within accumulated other comprehensive income (loss) (“AOCI”) (in millions) was as follows: For the Years Ended December 31, 2019 2018 2017 Unrealized Gain (Loss) on Derivative Instruments Balance as of beginning-of-year $ 119 $ 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 73 ( 4 ) 43 Foreign currency contracts 108 44 20 Change in foreign currency exchange rate adjustment ( 52 ) 111 ( 137 ) Change in DAC, VOBA, DSI and DFEL ( 5 ) ( 14 ) 1 Income tax benefit (expense) ( 26 ) ( 29 ) 26 Less: Reclassification adjustment for gains (losses) included in net income (loss): Cash flow hedges: Interest rate contracts (1) 3 4 4 Foreign currency contracts (1) 35 27 18 Foreign currency contracts (2) 9 - 9 Associated amortization of DAC, VOBA, DSI and DFEL ( 2 ) ( 3 ) ( 2 ) Income tax benefit (expense) ( 9 ) ( 6 ) ( 10 ) Balance as of end-of-year $ 181 $ 119 $ 27 (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 effects of qualifying and non-qualifying hedges (in millions) on the Consolidated Statements of Comprehensive Income (Loss) were as follows: Gain (Loss) Recognized in Income For the Year Ended December 31, 2019 Realized Net Gain Investment (Loss) Income Total Line Items in which the Effects of Fair Value or Cash Flow Hedges are Recorded $ ( 828 ) $ 4,962 Qualifying Hedges Gain or (loss) on fair value hedging relationships: Interest rate contracts: Hedged items - 63 Derivatives designated as hedging instruments - ( 63 ) Gain or (loss) on cash flow hedging relationships: Interest rate contracts: Amount of gain or (loss) reclassified from AOCI into income - 3 Foreign currency contracts: Amount of gain or (loss) reclassified from AOCI into income 9 35 Non-Qualifying Hedges Interest rate contracts 982 - Foreign currency contracts ( 1 ) - Equity market contracts ( 137 ) - Embedded derivatives: GLB 1 - Reinsurance related ( 626 ) - Indexed annuity and IUL contracts ( 742 ) - The gains (losses) on derivative instruments (in millions) recorded within income (loss) from continuing operations on our Consolidated Statements of Comprehensive Income (Loss) were as follows: For the Years Ended December 31, 2018 2017 Qualifying Hedges Cash flow hedges: Interest rate contracts (1) $ 4 $ 4 Foreign currency contracts (1) 27 18 Foreign currency contracts (2) - 9 Total cash flow hedges 31 31 Fair value hedges: Interest rate contracts (1) ( 14 ) ( 23 ) Interest rate contracts (2) 37 7 Total fair value hedges 23 ( 16 ) Non-Qualifying Hedges Interest rate contracts (2) ( 149 ) 103 Foreign currency contracts (2) 5 - Equity market contracts (2) 445 ( 1,427 ) Equity market contracts (3) ( 17 ) 28 Credit contracts (3) - 1 Embedded derivatives: GLB (2) ( 1 ) - Reinsurance related (2) 292 ( 141 ) Indexed annuity and IUL contracts (2) 81 ( 400 ) Total derivative instruments $ 710 $ ( 1,821 ) (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 Years Ended December 31, 2018 2017 Offset to net investment income 4 22 Offset to realized gain (loss) 27 9 As of December 31, 2019, $ 45 million of the deferred net gains (losses) on derivative instruments in AOCI were expected to be reclassified to earnings during the next 12 months. This reclassification would be due primarily to interest rate variances related to our interest rate swap agreements. For the years ended December 31, 2019 and 2018, 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 December 31, 2019, information related to our credit default swaps for which we are the seller (dollars in millions) was as follows: Credit Reason Nature Rating of Number Maximum for of Underlying of Fair Potential Credit Contract Type Maturity Entering Recourse Obligation (1) Instruments Value (2) Payout Basket credit default swaps 12/20/2024 (3) (4) BBB+ 1 $ 1 $ 55 (1) Represents average credit ratings based on the midpoint of the applicable ratings among Moody ’ s, S&P and Fitch Ratings, as scaled to the corresponding S&P ratings. (2) Broker quotes are used to determine the market value of our credit default swaps. (3) Credit default swaps were entered into in order to hedge the liability exposure on certain variable annuity products. (4) Sellers do not have the right to demand indemnification or compensation from third parties in case of a loss (payment) on the contract. As of December 31, 2018, we did no t have any exposure related to credit default swaps for which we are the seller. Details underlying the associated collateral of our credit default swaps for which we are the seller if credit risk-related contingent features were triggered (in millions) were as follows: As of As of December 31, December 31, 2019 2018 Maximum potential payout $ 55 $ - Less: Counterparty thresholds - - Maximum collateral potentially required to post $ 55 $ - Certain of our credit default swap agreements contain contractual provisions that allow for the netting of collateral with our counterparties related to all of our collateralized financing transactions that we have outstanding. If these netting agreements were not in place, we would have been required to post 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 NPR. The NPR is based upon assumptions for each counterparty’s credit spread over the estimated weighted average life of the counterparty exposure, less collateral held. As of December 31, 2019, the NPR adjustment was zero . The credit risk associated with such agreements is minimized by entering into agreements with financial institutions with long-standing, superior performance records. Additionally, we maintain a policy of requiring derivative contracts to be governed by an International Swaps and Derivatives Association (“ISDA”) Master Agreement. We are required to maintain minimum ratings as a matter of routine practice in negotiating ISDA agreements. Under some ISDA agreements, we and LLANY have agreed to maintain certain financial strength or claims-paying ratings. A downgrade below these levels could result in termination of derivative contracts, at which time any amounts payable by us would be dependent on the market value of the underlying derivative contracts. In certain transactions, we and the counterparty have entered into a credit support annex requiring either party to post collateral when net exposures exceed pre-determined thresholds. These thresholds vary by counterparty and credit rating. The amount of such exposure is essentially the net replacement cost or market value less collateral held for such agreements with each counterparty if the net market value is in our favor. We did no t have any exposure as of December 31, 2019 or 2018. The amounts recognized (in millions) by S&P credit rating of counterparty, for which we had the right to reclaim cash collateral or were obligated to return cash collateral, were as follows: As of December 31, 2019 As of December 31, 2018 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- $ 441 $ ( 22 ) $ 33 $ ( 4 ) A+ 549 ( 168 ) 296 ( 26 ) A 36 - 106 ( 36 ) A- 355 - 4 - BBB+ - - 177 - $ 1,381 $ ( 190 ) $ 616 $ ( 66 ) Balance Sheet Offsetting Information related to the effects of offsetting on our Consolidated Balance Sheets (in millions) was as follows: As of December 31, 2019 Embedded Derivative Derivative Instruments Instruments Total Financial Assets Gross amount of recognized assets $ 2,619 $ 1,437 $ 4,056 Gross amounts offset ( 708 ) - ( 708 ) Net amount of assets 1,911 1,437 3,348 Gross amounts not offset: Cash collateral ( 1,381 ) - ( 1,381 ) Non-cash collateral ( 242 ) - ( 242 ) Net amount $ 288 $ 1,437 $ 1,725 Financial Liabilities Gross amount of recognized liabilities $ 771 $ 3,470 $ 4,241 Gross amounts offset ( 15 ) - ( 15 ) Net amount of liabilities 756 3,470 4,226 Gross amounts not offset: Cash collateral ( 190 ) - ( 190 ) Non-cash collateral - - - Net amount $ 566 $ 3,470 $ 4,036 As of December 31, 2018 Embedded Derivative Derivative Instruments Instruments Total Financial Assets Gross amount of recognized assets $ 1,282 $ 1,285 $ 2,567 Gross amounts offset ( 201 ) - ( 201 ) Net amount of assets 1,081 1,285 2,366 Gross amounts not offset: Cash collateral ( 616 ) - ( 616 ) Non-cash collateral ( 58 ) - ( 58 ) Net amount $ 407 $ 1,285 $ 1,692 Financial Liabilities Gross amount of recognized liabilities $ 806 $ 1,501 $ 2,307 Gross amounts offset ( 59 ) - ( 59 ) Net amount of liabilities 747 1,501 2,248 Gross amounts not offset: Cash collateral ( 66 ) - ( 66 ) Non-cash collateral ( 190 ) - ( 190 ) Net amount $ 491 $ 1,501 $ 1,992 |
Federal Income Taxes
Federal Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Federal Income Taxes [Abstract] | |
Federal Income Taxes | 7. Federal Income Taxes The federal income tax expense (benefit) on continuing operations (in millions) was as follows: For the Years Ended December 31, 2019 2018 2017 Current $ 175 $ 179 $ 118 Deferred ( 212 ) 78 ( 1,405 ) Federal income tax expense (benefit) $ ( 37 ) $ 257 $ ( 1,287 ) A reconciliation of the effective tax rate differences (in millions) was as follows: For the Years Ended December 31, 2019 2018 2017 Income (loss) before taxes $ 577 $ 1,830 $ 731 Federal statutory rate 21 % 21 % 35 % Federal income tax expense (benefit) at federal statutory rate 121 384 256 Effect of: Tax-preferred investment income (1) ( 99 ) ( 87 ) ( 280 ) Tax credits ( 40 ) ( 39 ) ( 29 ) Excess tax benefits from stock-based compensation ( 6 ) ( 3 ) ( 8 ) Goodwill impairment - - 316 Tax impact associated with the Tax Cuts and Jobs Act (2) ( 16 ) 3 ( 1,526 ) Other items 3 ( 1 ) ( 16 ) Federal income tax expense (benefit) $ ( 37 ) $ 257 $ ( 1,287 ) Effective tax rate - 6 % 14 % - 176 % (1) Relates primarily to separate account dividends eligible for the dividends-received deduction. As a result of the Tax Cuts and Jobs Act (the “Tax Act”), the recorded tax benefit for the separate account dividends-received deduction was substantially less in 2019 and 2018 as compared to 2017. (2) As a result of the enactment of the Tax Act in 2017, we remeasured our existing deferred tax balances at the prevailing corporate federal income tax rate of 21 % and recognized a $ 1.5 billion tax benefit. In 2018, we recognized a $ 3 million net tax benefit from the impact of the reduced federal statutory rate under the Tax Act on our adoption of an Internal Revenue Service pronouncement related to variable annuity contracts. In 2019, we recognized a $ 16 million net tax benefit from the impact of the reduced corporate tax rate under the Tax Act on our election to revalue policyholder tax reserves . The federal income tax asset (liability) (in millions) was as follows: As of December 31, 2019 2018 Current $ 255 $ 205 Deferred ( 2,605 ) ( 1,421 ) Total federal income tax asset (liability) $ ( 2,350 ) $ ( 1,216 ) Significant components of our deferred tax assets and liabilities (in millions) were as follows: As of December 31, 2019 2018 Deferred Tax Assets Future contract benefits and other contract holder funds $ 527 $ 549 Reinsurance related embedded derivative liability 79 - Compensation and benefit plans 135 120 Intangibles 26 40 Net operating losses 216 264 Other 14 59 Total deferred tax assets $ 997 $ 1,032 Deferred Tax Liabilities DAC $ 854 $ 1,380 VOBA 191 302 Net unrealized gain on fixed maturity AFS securities 2,216 333 Net unrealized gain on trading securities 70 25 Investment activity 154 334 Reinsurance related embedded derivative asset - 39 Deferred gain on business sold through reinsurance 4 34 Other 113 6 Total deferred tax liabilities $ 3,602 $ 2,453 Net deferred tax asset (liability) $ ( 2,605 ) $ ( 1,421 ) As of December 31, 2019, we have $ 1.0 billion of net operating losses to carry forward to future years. The net operating losses arose in tax year 2018, and under the Tax Act changes, have an unlimited carryforward period. As a result, management believes that it is more likely than not that the deferred tax asset associated with the loss carryforwards will be realized. Inclusive of the tax attribute for the net operating losses, although realization is not assured, management believes that it is more likely than not that we will realize the benefits of all of our deferred tax assets, and, accordingly, no valuation allowance has been recorded. As of December 31, 2019, and 2018, $ 41 million and $ 12 million , respectively, of our unrecognized tax benefits presented below, if recognized, would have affected our federal income tax expense (benefit) and our effective tax rate. We are not aware of any events for which it is likely that unrecognized tax benefits will significantly increase or decrease within the next year. A reconciliation of the unrecognized tax benefits (in millions) was as follows: For the Years Ended December 31, 2019 2018 Balance as of beginning-of-year $ 12 $ 11 Increases for prior year tax positions 29 - Increases for current year tax positions - 1 Balance as of end-of-year $ 41 $ 12 We recognize interest and penalties accrued, if any, related to unrecognized tax benefits as a component of tax expense. For the years ended December 31, 2019, 2018 and 2017, we recognized no interest and penalty expense (benefit), and there was no accrued interest and penalty expense related to the unrecognized tax benefits as of December 31, 2019 and 2018. We are subject to examination by U.S. federal, state, local and non-U.S. income authorities. We are currently not under examination by the Internal Revenue Service; however, tax years 2016 and forward remain open under the applicable statute of limitations. We are currently under examination by several state and local taxing jurisdictions; however, we do not expect these examinations will materially impact us. |
DAC, VOBA, DSI and DFEL
DAC, VOBA, DSI and DFEL | 12 Months Ended |
Dec. 31, 2019 | |
DAC, VOBA, DSI and DFEL [Abstract] | |
DAC, VOBA, DSI and DFEL | 8. DAC, VOBA, DSI and DFEL Changes in DAC (in millions) were as follows: For the Years Ended December 31, 2019 2018 2017 Balance as of beginning-of-year $ 9,509 $ 7,909 $ 8,269 Business acquired (sold) through reinsurance - ( 246 ) - Business recaptured through reinsurance 59 - - Deferrals 1,900 1,596 1,345 Amortization, net of interest: Amortization, excluding unlocking, net of interest ( 922 ) ( 913 ) ( 922 ) Unlocking ( 471 ) ( 115 ) 61 Adjustment related to realized (gains) losses ( 43 ) ( 42 ) ( 55 ) Adjustment related to unrealized (gains) losses ( 2,614 ) 1,320 ( 789 ) Balance as of end-of-year $ 7,418 $ 9,509 $ 7,909 Changes in VOBA (in millions) were as follows: For the Years Ended December 31, 2019 2018 2017 Balance as of beginning-of-year $ 799 $ 499 $ 874 Business acquired (sold) through reinsurance - ( 11 ) - Business acquired - 30 - Deferrals 6 7 7 Amortization: Amortization, excluding unlocking ( 115 ) ( 127 ) ( 105 ) Unlocking 143 ( 60 ) ( 48 ) Accretion of interest (1) 45 48 52 Adjustment related to realized (gains) losses ( 1 ) ( 2 ) ( 1 ) Adjustment related to unrealized (gains) losses ( 550 ) 415 ( 280 ) Balance as of end-of-year $ 327 $ 799 $ 499 (1) The interest accrual rates utilized to calculate the accretion of interest ranged from 4.2 % to 6.9 %. Estimated future amortization of VOBA, net of interest (in millions), as of December 31, 2019, was as follows: 2020 $ 72 2021 66 2022 67 2023 65 2024 61 Changes in DSI (in millions) were as follows: For the Years Ended December 31, 2019 2018 2017 Balance as of beginning-of-year $ 298 $ 287 $ 293 Business acquired (sold) through reinsurance - ( 21 ) - Deferrals 26 48 29 Amortization, net of interest: Amortization, excluding unlocking, net of interest ( 28 ) ( 28 ) ( 30 ) Unlocking ( 3 ) - ( 4 ) Adjustment related to realized (gains) losses ( 2 ) ( 1 ) ( 2 ) Adjustment related to unrealized (gains) losses ( 10 ) 13 1 Balance as of end-of-year $ 281 $ 298 $ 287 Changes in DFEL (in millions) were as follows: For the Years Ended December 31, 2019 2018 2017 Balance as of beginning-of-year $ 2,763 $ 1,429 $ 1,855 Business recaptured through reinsurance 5 - - Deferrals 1,092 874 753 Amortization, net of interest: Amortization, excluding unlocking, net of interest ( 533 ) ( 474 ) ( 383 ) Unlocking ( 426 ) ( 52 ) ( 3 ) Adjustment related to realized (gains) losses ( 11 ) ( 19 ) ( 18 ) Adjustment related to unrealized (gains) losses ( 2,244 ) 1,005 ( 775 ) Balance as of end-of-year $ 646 $ 2,763 $ 1,429 |
Reinsurance
Reinsurance | 12 Months Ended |
Dec. 31, 2019 | |
Reinsurance [Abstract] | |
Reinsurance | 9. Reinsurance The following summarizes reinsurance amounts (in millions) recorded on our Consolidated Statements of Comprehensive Income (Loss), excluding amounts attributable to the indemnity reinsurance agreements with Protective and Swiss Re Life & Health America, Inc. (“Swiss Re”): For the Years Ended December 31, 2019 2018 2017 Direct insurance premiums and fee income $ 13,347 $ 11,882 $ 10,103 Reinsurance assumed 97 96 101 Reinsurance ceded ( 1,920 ) ( 1,883 ) ( 1,817 ) Total insurance premiums and fee income $ 11,524 $ 10,095 $ 8,387 Direct insurance benefits $ 9,482 $ 8,513 $ 6,669 Reinsurance recoveries netted against benefits ( 1,897 ) ( 2,369 ) ( 1,851 ) Total benefits $ 7,585 $ 6,144 $ 4,818 We and our insurance subsidiaries cede insurance to other companies. The portion of our life insurance and annuity risks exceeding our retention limit is reinsured with other insurers. We seek reinsurance coverage to limit our exposure to mortality losses and to enhance our capital management. Reinsurance does not discharge us from our primary obligation to contract holders for losses insured under the policies we issue. As discussed in Note 24, a portion of this reinsurance activity is with affiliated companies. As of December 31, 2019, the policy for our reinsurance program was to retain up to $ 20 million on a single insured life. As the amount we retain varies by policy, we reinsured approximately 25 % of the mortality risk on newly issued life insurance contracts in 2019. We focus on obtaining reinsurance from a diverse group of reinsurers, and we monitor concentration as well as financial strength ratings of our reinsurers. Our amounts recoverable from reinsurers represent receivables from and reserves ceded to reinsurers and LNBAR. The amounts recoverable from reinsurers were $ 19.2 billion and $ 19.8 billion as of December 31, 2019 and 2018, respectively. Protective represents our largest reinsurance exposure following the sale of the Liberty Life Business as discussed in Note 3, which resulted in amounts recoverable from Protective of $ 11.8 billion and $ 12.1 billion as of December 31, 2019 and 2018, respectively. Protective has funded trusts, of which the balance in the trusts changes as a result of ongoing reinsurance activity, to support the business ceded, which totaled $ 14.7 billion and $ 13.7 billion as of December 31, 2019 and 2018, respectively. Our reinsurance operations were acquired by Swiss Re in December 2001 through a series of indemnity reinsurance transactions. As such, Swiss Re reinsured certain liabilities and obligations under the indemnity reinsurance agreements. As we are not relieved of our liability to the ceding companies for this business, the liabilities and obligations associated with the reinsured policies remain on our Consolidated Balance Sheets with a corresponding reinsurance receivable from Swiss Re, which totaled $ 1.3 billion and $ 1.5 billion as of December 31, 2019 and 2018, respectively. Swiss Re has funded a trust, with a balance of $ 2.7 billion as of December 31, 2019, to support this business. In addition to various remedies that we would have in the event of a default by Swiss Re, we continue to hold assets in support of certain of the transferred reserves. These assets consist of those reported as trading securities and certain mortgage loans. Our liabilities for funds withheld and embedded derivatives as of December 31, 2019, included $ 164 million and $ 31 million, respectively, related to the business sold to Swiss Re. In addition, the amounts recoverable from LNBAR were $ 2.4 billion and $ 2.5 billion as of December 31, 2019 and 2018, respectively. LNBAR has funded trusts to support the business ceded of which the balance in the trusts changes as a result of ongoing reinsurance activity and totaled $ 2.3 billion as of December 31, 2019. Some portions of our annuity business have been reinsured on a Modco basis with other companies. In a Modco agreement, we as the ceding company retain the reserves, as well as the assets backing those reserves, and the reinsurer shares proportionally in all financial terms of the reinsured policies based on their respective percentage of the risk. Effective October 1, 2018, we entered into one such Modco agreement with Athene to reinsure fixed and fixed indexed annuity products, which resulted in a deposit asset of $ 6.6 billion and $ 7.5 billion as of December 31, 2019 and 2018, respectively, within other assets on our Consolidated Balance Sheets. We held investments of $ 6.9 billion as of December 31, 2019, in support of reserves associated with the transaction in a Modco investment portfolio. As of December 31, 2019, the portfolio included trading securities, fixed maturity AFS securities, commercial mortgage loans, derivative investments, other investments, cash, accrued investment income and equity securities that had carrying values of $ 3.5 billion, $ 2.3 billion, $ 698 million, $ 130 million, $ 94 million, $ 62 million, $ 57 million and $ 14 million, respectively. In addition, the portfolio was supported by $ 201 million of over-collateralization and a $ 200 million letter of credit as of December 31, 2019. As described in Note 1, we recorded a deferred gain on business sold through reinsurance related to the transaction with Athene and amortized $ 30 million and $ 8 million of the gain during 2019 and 2018, respectively. In repositioning the Modco investment portfolio, purchases of securities classified as trading during 2019 primarily resulted in negative cash flows from operating activities that were largely offset by sales of securities classified as fixed maturity AFS within investing activities in our Consolidated Statements of Cash Flows. See Note 6 for information on reinsurance related embedded derivatives. |
Goodwill and Specifically Ident
Goodwill and Specifically Identifiable Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Specifically Identifiable Intangible Assets [Abstract] | |
Goodwill and Specifically Identifiable Intangible Assets | 10. Goodwill and Specifically Identifiable Intangible Assets The changes in the carrying amount of goodwill (in millions) by reportable segment were as follows: For the Year Ended December 31, 2019 Gross Accumulated Goodwill Impairment Net as of as of Acquisition Goodwill Beginning- Beginning- Accounting as of End- of-Year of-Year Adjustments Impairment of-Year Annuities $ 1,040 $ ( 600 ) $ - $ - $ 440 Retirement Plan Services 20 - - - 20 Life Insurance 2,186 ( 1,552 ) - - 634 Group Protection 688 - ( 4 ) - 684 Total goodwill $ 3,934 $ ( 2,152 ) $ ( 4 ) $ - $ 1,778 For the Year Ended December 31, 2018 Gross Accumulated Goodwill Impairment Net as of as of Acquisition Goodwill Beginning- Beginning- Accounting as of End- of-Year of-Year Adjustments Impairment of-Year Annuities $ 1,040 $ ( 600 ) $ - $ - $ 440 Retirement Plan Services 20 - - - 20 Life Insurance 2,186 ( 1,552 ) - - 634 Group Protection 274 - 414 - 688 Total goodwill $ 3,520 $ ( 2,152 ) $ 414 $ - $ 1,782 The fair values of our reporting units (Level 3 fair value estimates) are comprised of the value of in-force (i.e., existing) business and the value of new business. Specifically, new business is representative of cash flows and profitability associated with policies or contracts we expect to issue in the future, reflecting our forecasts of future sales volume and product mix over a 10 -year period. To determine the values of in-force and new business, we use a discounted cash flows technique that applies a discount rate reflecting the market expected, weighted-average rate of return adjusted for the risk factors associated with operations to the projected future cash flows for each reporting unit. As of October 1, 2019 and 2018, we performed our annual quantitative goodwill impairment test for our reporting units, and, as of each such date, the fair value was in excess of each reporting unit’s carrying value for Annuities, Retirement Plan Services, Life Insurance and Group Protection. As of October 1, 2017, the date of our annual quantitative assessment of goodwill, our Annuities, Retirement Plan Services and Group Protection reporting units had fair values that exceeded the carrying value of each reporting unit. Our early adoption of ASU 2017-04, “Simplifying the Test for Goodwill Impairment,” resulted in impairment of the Life Insurance reporting unit goodwill of $ 905 million during the fourth quarter of 2017 driven primarily from the impact of the December 22, 2017, enactment of the Tax Act that increased the carrying value of the Life Insurance reporting unit in excess of its fair value. The gross carrying amounts and accumulated amortization (in millions) for each major specifically identifiable intangible asset class by reportable segment were as follows: As of December 31, 2019 As of December 31, 2018 Gross Gross Carrying Accumulated Carrying Accumulated Amount Amortization Amount Amortization Retirement Plan Services: Mutual fund contract rights (1) $ 5 $ - $ 5 $ - Life Insurance: Sales force 100 55 100 51 Group Protection: VOCRA 576 25 576 5 VODA 31 2 31 - Insurance licenses (1) 3 - 3 - Total $ 715 $ 82 $ 715 $ 56 (1) No amortization recorded as the intangible asset has indefinite life . Future estimated amortization of specifically identifiable intangible assets (in millions) as of December 31, 2019, was as follows: 2020 $ 37 2021 37 2022 37 2023 37 2024 37 Thereafter 440 |
Guaranteed Benefit Features
Guaranteed Benefit Features | 12 Months Ended |
Dec. 31, 2019 | |
Guaranteed Benefit Features [Abstract] | |
Guaranteed Benefit Features | 11. Guaranteed Benefit Features Information on the GDB features outstanding (dollars in millions) was as follows: As of December 31, 2019 (1) 2018 (1) Return of Net Deposits Total account value $ 101,601 $ 89,783 Net amount at risk (2) 71 1,002 Average attained age of contract holders 65 years 65 years Minimum Return Total account value $ 92 $ 88 Net amount at risk (2) 13 18 Average attained age of contract holders 77 years 77 years Guaranteed minimum return 5 % 5 % Anniversary Contract Value Total account value $ 25,763 $ 23,365 Net amount at risk (2) 384 2,007 Average attained age of contract holders 71 years 71 years (1) Our variable contracts with guarantees may offer more than one type of guarantee in each contract; therefore, the amounts listed are not mutually exclusive. (2) Represents the amount of death benefit in excess of the account balance that is subject to market fluctuations. The determination of GDB liabilities is based on models that involve a range of scenarios and assumptions, including those regarding expected market rates of return and volatility, contract surrender rates and mortality experience. The following summarizes the balances of and changes in the liabilities for GDBs (in millions), which were recorded in future contract benefits on our Consolidated Balance Sheets: For the Years Ended December 31, 2019 2018 2017 Balance as of beginning-of-year $ 161 $ 100 $ 110 Changes in reserves ( 24 ) 77 8 Benefits paid ( 20 ) ( 16 ) ( 18 ) Balance as of end-of-year $ 117 $ 161 $ 100 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 December 31, 2019 2018 Asset Type Domestic equity $ 64,093 $ 54,060 International equity 19,852 18,359 Fixed income 41,405 37,942 Total $ 125,350 $ 110,361 Percent of total variable annuity separate account values 98 % 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. Reserves on UL and VUL products with secondary guarantees represented 35 % and 33 % of total life insurance in-force reserves as of December 31, 2019 and 2018, respectively. UL and VUL products with secondary guarantees represented 27 %, 36 % and 27 % of total life insurance sales for the years ended December 31, 2019, 2018 and 2017, respectively. |
Liability For Unpaid Claims
Liability For Unpaid Claims | 12 Months Ended |
Dec. 31, 2019 | |
Liability For Unpaid Claims [Abstract] | |
Liability For Unpaid Claims | 12. Liability for Unpaid Claims The liability for unpaid claims consists primarily of long-term disability claims and is reported in future contract benefits on our Consolidated Balance Sheets. Changes in the liability for unpaid claims (in millions) were as follows: For the Years Ended December 31, 2019 2018 2017 Balance as of beginning-of-year $ 5,335 $ 2,222 $ 2,242 Reinsurance recoverable 143 57 69 Net balance as of beginning-of-year 5,192 2,165 2,173 Business acquired (1) - 2,842 - Incurred related to: Current year 3,193 2,531 1,346 Prior years: Interest 151 120 69 All other incurred (2) ( 308 ) ( 208 ) ( 76 ) Total incurred 3,036 2,443 1,339 Paid related to: Current year ( 1,518 ) ( 1,197 ) ( 798 ) Prior years ( 1,310 ) ( 1,061 ) ( 549 ) Total paid ( 2,828 ) ( 2,258 ) ( 1,347 ) Net balance as of end-of-year 5,400 5,192 2,165 Reinsurance recoverable 152 143 57 Balance as of end-of-year $ 5,552 $ 5,335 $ 2,222 (1) Represents acquired group life and disability reserves, net, as of May 1, 2018. See Note 3 for additional information. (2) All other incurred is primarily impacted by the level of claim resolutions in the period compared to that which is expected by the reserve assumption. A negative number implies a favorable result where claim resolutions were more favorable than assumed. Our claim resolution rate assumption used in determining reserves is our expectation of the resolution rate we will experience over the long-term life of the block of claims. It will vary from actual experience in any one period, both favorably and unfavorably . The interest rate assumption used for discounting long-term claim reserves is an important part of the reserving process due to the long benefit period for these claims. Interest accrued on prior years’ reserves has been calculated on the opening reserve balance less one-half of the prior years’ incurred claim payments at our average reserve discount rate. Long-term disability benefits may extend for many years, and claim development schedules do not reflect these longer benefit periods. As a result, we use longer term retrospective runoff studies, experience studies and prospective studies to develop our liability estimates. Long-term disability reserves are discounted using rates ranging from 3.25 % to 5 %. The discount rates vary by year of claim incurral. |
Short-Term and Long-Term Debt
Short-Term and Long-Term Debt | 12 Months Ended |
Dec. 31, 2019 | |
Short-Term and Long-Term Debt [Abstract] | |
Short-Term and Long-Term Debt | 13. Short-Term and Long-Term Debt Details underlying short-term and long-term debt (in millions) were as follows: As of December 31, 2019 2018 Short-Term Debt Short-term debt (1) $ 609 $ 288 Long-Term Debt, Excluding Current Portion 9.76 % surplus note, due 2024 $ 50 $ 50 6.56 % surplus note, due 2028 500 500 LIBOR + 111 bps surplus note, due 2028 71 71 LIBOR + 226 bps surplus note, due 2028 613 600 6.03 % surplus note, due 2028 750 750 LIBOR + 200 bps surplus note, due 2035 30 30 LIBOR + 155 bps surplus note, due 2037 25 25 4.20 % surplus note, due 2037 50 50 LIBOR + 100 bps surplus note, due 2037 284 312 4.225 % surplus note, due 2037 28 - 4.50 % surplus note, due 2038 13 13 Total long-term debt $ 2,414 $ 2,401 (1) The short-term debt represents short-term notes payable to LNC. Future principal payments due on long-term debt (in millions) as of December 31, 2019, were as follows: 2020 $ - 2021 - 2022 - 2023 - 2024 50 Thereafter 2,364 Total $ 2,414 We issued a surplus note of $ 50 million to LNC in 1994. The note calls for us to pay the principal amount of the note on or before September 30, 2024 , and interest to be paid semiannually at an annual rate of 9.76 %. Subject to approval by the Commissioner, we have the right to repay the note on any March 31 or September 30. We issued a surplus note of $ 500 million to LNC in 1998. The note calls for us to pay the principal amount of the note on or before March 31, 2028 , and interest to be paid quarterly at an annual rate of 6.56 %. Subject to approval by the Commissioner, LNC has the right to redeem the note for immediate repayment in total or in part once per year on the anniversary date of the note. Any payment of interest or repayment of principal may be paid only out of our statutory earnings, only if our statutory capital surplus exceeds our statutory capital as of the date of note issuance of $ 2.3 billion, and subject to approval by the Commissioner. On October 1, 2013, we issued a surplus note of $ 71 million to LNC. The note calls for us to pay the principal amount of the note on or before September 24, 2028 , and interest to be paid quarterly at an annual rate of LIBOR + 111 bps. Subject to approval by the Commissioner, we have the right to repay the note in whole or in part prior to the maturity date, if our statutory capital surplus exceeds the sum of our surplus at closing plus any accrued but unpaid interest. On December 17, 2013, we issued a variable surplus note to a wholly-owned subsidiary of LNC with an initial outstanding principal amount of $ 287 million. The outstanding principal amount as of December 31, 2019, was $ 613 million. The note calls for us to pay the principal amount of the note on or before October 1, 2028 , and interest to be paid quarterly at an annual rate of LIBOR + 226 bps. We issued a surplus note of $ 750 million to LNC in 1998. The note calls for us to pay the principal amount of the note on or before December 31, 2028 , and interest to be paid quarterly at an annual rate of 6.03 %. Subject to approval by the Commissioner, LNC has the right to redeem the note for immediate repayment in total or in part once per year on the anniversary date of the note. Any payment of interest or repayment of principal may be paid only out of our statutory earnings, only if our statutory capital surplus exceeds our statutory capital surplus as of the date of note issuance of $ 2.4 billion, and subject to approval by the Commissioner. On October 1, 2015, we issued a surplus note of $ 30 million to LNC. The note calls for us to pay the principal amount of the note on or before September 28, 2035 , and interest to be paid quarterly at an annual rate of LIBOR + 200 bps. Subject to approval by the Commissioner, we have the right to repay the note in whole or in part prior to the maturity date, if our statutory capital surplus exceeds the sum of our surplus at closing plus any accrued but unpaid interest. On July 1, 2017, we issued a surplus note of $ 25 million to LNC. The note calls for us to pay the principal amount of the note on or before June 30, 2037 , and interest to be paid quarterly at an annual rate of LIBOR + 155 bps. Subject to approval by the Commissioner, we have the right to repay the note in whole or in part prior to the maturity date, if our statutory capital surplus exceeds the sum of our surplus at closing plus any accrued but unpaid interest. On October 1, 2017, we issued a surplus note of $ 50 million to LNC. The note calls for us to pay the principal amount of the note on or before July 1, 2037 , and interest to be paid quarterly at an annual rate of 4.20 %. Subject to approval by the Commissioner, we have the right to repay the note in whole or in part prior to the maturity date, if our statutory capital surplus exceeds the sum of our surplus at closing plus any accrued but unpaid interest. On October 9, 2007, we issued a surplus note of $ 375 million that LNC has held effective December 31, 2008. The note calls for us to pay the principal amount of the note on or before October 9, 2037 , and interest to be paid quarterly at an annual rate of LIBOR + 100 bps. On June 15, 2017, the surplus note was amended to include repayment terms stating subject to approval by the Commissioner, we have the right to repay the note in whole or in part prior to the maturity date, if our statutory capital surplus exceeds the sum of our surplus at closing plus any accrued but unpaid interest. The outstanding principal amount as of December 31, 2019, was $ 284 million due to executing our right to repay the surplus note in part to LNC. On July 1, 2018, we issued a surplus note of $ 13 million to LNC. The note calls for us to pay the principal amount of the note on or before June 30, 2038 , and interest to be paid quarterly at an annual rate of 4.50 %. Subject to approval by the Commissioner, we have the right to repay the note in whole or in part prior to the maturity date, if our statutory capital surplus exceeds the sum of our surplus at closing plus any accrued but unpaid interest. On July 1, 2019, we issued a surplus note of $ 28 million to LNC. The note calls for us to pay the principal amount of the note on or before October 9, 2037 , and interest to be paid quarterly at an annual rate of 4.225 %. Subject to approval by the Commissioner, we have the right to repay the note in whole or in part prior to the maturity date, if our statutory capital surplus exceeds the sum of our surplus at closing plus any accrued but unpaid interest. Credit Facilities and Letters of Credit Credit facilities, which allow for borrowing or issuances of letters of credit (“LOCs”), and LOCs (in millions) were as follows: As of December 31, 2019 Expiration Maximum LOCs Date Available Issued Credit Facilities Five-year revolving credit facility July 31, 2024 $ 2,250 $ 340 LOC facility (1) August 26, 2031 990 965 LOC facility (1) October 1, 2031 982 982 Total $ 4,222 $ 2,287 (1) Our wholly-owned subsidiaries entered into irrevocable LOC facility agreements with third-party lenders supporting inter-company reinsurance agreements . On July 31, 2019, LNC refinanced its existing credit facility with a syndicate of banks. This facility (the “credit facility”) allows for the issuance of LOCs and borrowing of up to $ 2.25 billion. The credit facility is unsecured and has a commitment termination date of July 31, 2024. The LOCs under the credit facility are used primarily to satisfy reserve credit requirements of (i) LNL and LNC’s other domestic insurance companies for which reserve credit is provided by our captive reinsurance subsidiaries and LNBAR and (ii) certain ceding companies of our legacy reinsurance business. The credit agreement governing the credit facility contains or includes: Customary terms and conditions, including covenants restricting the ability of LNC and its subsidiaries to incur liens and the ability of LNC to merge or consolidate with another entity where it is not the surviving entity and dispose of all or substantially all of its assets; Financial covenants including maintenance by LNC of a minimum consolidated net worth (as defined in the credit agreement) equal to the sum of $ 10.6 billion plus 50 % of the aggregate net proceeds of equity issuances received by LNC or any of its subsidiaries as set forth in the credit agreement; and a debt-to-capital ratio as defined in accordance with the credit facility not to exceed 0.35 to 1.00 ; A cap on LNC’s secured non-operating indebtedness and non-operating indebtedness of LNC’s subsidiaries equal to 7.5 % of total capitalization, as defined in accordance with the credit agreement; and Customary events of default, subject to certain materiality thresholds and grace periods for certain of those events of default. Upon an event of default, the credit agreement provides that, among other things, the commitments may be terminated and the loans then outstanding may be declared due and payable. As of December 31, 2019, LNC was in compliance with all such covenants. Our LOC facility agreements each contain customary terms and conditions, including early termination fees, covenants restricting the ability of the subsidiaries to incur liens, merge or consolidate with another entity and dispose of all or substantially all of their assets. Upon an event of early termination, the agreements require the immediate payment of all or a portion of the present value of the future LOC fees that would have otherwise been paid. Further, the agreements contain customary events of default, subject to certain materiality thresholds and grace periods for certain of those events of default. The events of default include payment defaults, covenant defaults, material inaccuracies in representations and warranties, bankruptcy and liquidation proceedings and other customary defaults. Upon an event of default, the agreements provide that, among other things, obligations to issue, amend or increase the amount of any LOC shall be terminated and any obligations shall become immediately due and payable. As of December 31, 2019, we were in compliance with all such covenants. |
Contingencies and Commitments
Contingencies and Commitments | 12 Months Ended |
Dec. 31, 2019 | |
Contingencies and Commitments [Abstract] | |
Contingencies and Commitments | 14. Contingencies and Commitments Contingencies Regulatory and Litigation Matters Regulatory bodies, such as state insurance departments, the SEC, Financial Industry Regulatory Authority and other regulatory bodies regularly make inquiries and conduct examinations or investigations concerning our compliance with, among other things, insurance laws, securities laws, laws governing the activities of broker-dealers, registered investment advisers and unclaimed property laws. 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 with 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 December 31, 2019. 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 December 31, 2019, we estimate the aggregate range of reasonably possible losses, including amounts in excess of amounts accrued for these matters as of such date, to be up to approximately $ 90 million. Any estimate is not an indication of expected loss, if any, or of the Company’s maximum possible loss exposure on such matters. For other matters, we are not currently able to estimate the reasonably possible loss or range of loss. We are often unable to estimate the possible loss or range of loss until developments in such matters have provided sufficient information to support an assessment of the range of possible loss, such as quantification of a damage demand from plaintiffs, discovery from other parties and investigation of factual allegations, rulings by the court on motions or appeals, analysis by experts and the progress of settlement negotiations. On a quarterly and annual basis, we review relevant information with respect to litigation contingencies and update our accruals, disclosures and estimates of reasonably possible losses or ranges of loss based on such reviews . Certain reinsurers have sought rate increases on certain yearly renewable term treaties. We are disputing the requested rate increases under these treaties. We have initiated and will initiate arbitration proceedings, as necessary, under these treaties in order to protect our contractual rights. Additionally, reinsurers may initiate arbitration proceedings against us. We believe it is unlikely the outcome of these disputes will have a material adverse effect on our financial condition. For more information about reinsurance, see Note 9. Cost of Insurance Litigation Glover v. Connecticut General Life Insurance Company and The Lincoln National Life Insurance Company , filed in the U.S. District Court for the District of Connecticut, No. 3:16-cv-00827, is a putative class action that was served on LNL on June 8, 2016. Plaintiff is the owner of a universal life insurance policy who alleges that LNL charged more for non-guaranteed cost of insurance than permitted by the policy. Plaintiff seeks to represent all universal life and variable universal life policyholders who owned policies containing non-guaranteed cost of insurance provisions that are similar to those of Plaintiff’s policy and seeks damages on behalf of all such policyholders. On January 11, 2019, the court dismissed Plaintiff’s complaint in its entirety. In response, Plaintiff filed a motion for leave to amend the complaint, which we have opposed. Hanks v. The Lincoln Life and Annuity Company of New York (“LLANY”) and Voya Retirement Insurance and Annuity Company (“Voya”) , filed in the U.S. District Court for the Southern District of New York, No. 1:16-cv-6399, is a putative class action that was served on LLANY on August 12, 2016. Plaintiff owns a universal life policy originally issued by Aetna (now Voya) and alleges that (i) Voya breached the terms of the policy when it increased non-guaranteed cost of insurance rates on Plaintiff’s policy; and (ii) LLANY, as reinsurer and administrator of Plaintiff’s policy, engaged in wrongful conduct related to the cost of insurance increase and was unjustly enriched as a result. Plaintiff seeks to represent all owners of Aetna life insurance policies that were subject to non-guaranteed cost of insurance rate increases in 2016 and seeks damages on their behalf. On March 13, 2019, the court issued an order granting plaintiff’s motion for class certification for the breach of contract claim and denying such motion with respect to the unjust enrichment claim against LLANY, and, on September 12, 2019, the court issued an order approving the parties’ joint stipulation of dismissal with respect to the unjust enrichment claim and dismissed LLANY as a defendant in the case. In light of LLANY’s role as reinsurer and administrator under the 1998 coinsurance agreement with Aetna (now Voya), and of the parties’ rights and obligations thereunder, LLANY continues to be actively engaged in the vigorous defense of this action . EFG Bank AG, Cayman Branch, et al. v. The Lincoln National Life Insurance Company , pending in the U.S. District Court for the Eastern District of Pennsylvania, No. 2:17-cv-02592, is a civil action filed on February 1, 2017. Plaintiffs own Legend Series universal life insurance policies originally issued by Jefferson-Pilot (now LNL). Plaintiffs allege that LNL breached the terms of policyholders’ contracts when it increased non-guaranteed cost of insurance rates beginning in 2016. We are vigorously defending this matter. In re: Lincoln National COI Litigation , pending in the U.S. District Court for the Eastern District of Pennsylvania, Master File No. 2:16-cv-06605-GJP, is a consolidated litigation matter related to multiple putative class action filings that were consolidated by an order dated March 20, 2017. In addition to consolidating a number of existing matters, the order also covers any future cases filed in the same district related to the same subject matter. Plaintiffs own universal life insurance policies originally issued by Jefferson-Pilot (now LNL). Plaintiffs allege that LNL and LNC breached the terms of policyholders’ contracts by increasing non-guaranteed cost of insurance rates beginning in 2016. Plaintiffs seek to represent classes of policyowners and seek damages on their behalf. We are vigorously defending this matter. In re: Lincoln National 2017 COI Rate Litigation , Master File No. 2:17-cv-04150 is a consolidated litigation matter related to multiple putative class action filings that were consolidated by an order of the court in March 2018. Plaintiffs own universal life insurance policies originally issued by former Jefferson-Pilot (now LNL). Plaintiffs allege that LNL and LNC breached the terms of policyholders’ contracts by increasing non-guaranteed cost of insurance rates beginning in 2017. Plaintiffs seek to represent classes of policyholders and seek damages on their behalf. We are vigorously defending this matter. TVPX ARS INC., as Securities Intermediary for Consolidated Wealth Management, LTD. v. The Lincoln National Life Insurance Company , filed in the U.S. District Court for the Eastern District of Pennsylvania, No. 2:18-cv-02989, is a putative class action that was filed on July 17, 2018. Plaintiff alleges that LNL charged more for non-guaranteed cost of insurance than permitted by the policy. Plaintiff seeks to represent all universal life and variable universal life policyholders who own policies issued by LNL or its predecessors containing non-guaranteed cost of insurance provisions that are similar to those of Plaintiff’s policy and seeks damages on behalf of all such policyholders. We are vigorously defending this matter. LSH Co. and Wells Fargo Bank, National Association, as securities intermediary for LSH Co. v. Lincoln National Corporation and The Lincoln National Life Insurance Company , pending in the U.S. District Court for the Eastern District of Pennsylvania, No. 2:18-cv-05529, is a civil action filed on December 21, 2018. Plaintiffs own universal life insurance policies originally issued by Jefferson-Pilot (now LNL). Plaintiffs allege that LNL breached the terms of policyholders’ contracts when it increased non-guaranteed cost of insurance rates in 2016 and 2017. We are vigorously defending this matter. Vida Longevity Fund, LP v. Lincoln Life & Annuity Company of New York , pending in the U.S. District Court for the Southern District of New York, No. 1:19-cv-06004, is a putative class action that was filed on June 27, 2019. Plaintiff alleges that LLANY charged more for non-guaranteed cost of insurance than was permitted by the policies. Plaintiff seeks to represent all current and former owners of universal life (including variable universal life) policies who own or owned policies issued by LLANY and its predecessors in interest that were in force at any time on or after June 27, 2013, and which contain non-guaranteed cost of insurance provisions that are similar to those of Plaintiff’s policies. Plaintiff also seeks to represent a sub-class of such policyholders who own or owned “life insurance policies issued in the State of New York.” Plaintiff seeks damages on behalf of the policyholder class and sub-class. We are vigorously defending this matter. Commitments Leases We recognized operating lease ROU assets of $ 202 million and associated lease liabilities of $ 208 million as of December 31, 2019. We classified the operating lease ROU assets within other assets and the lease liabilities within other liabilities on our Consolidated Balance Sheets. The weighted-average discount rate and remaining lease term were 3.2 % and 6 years, respectively, as of December 31, 2019. Operating lease expense for the years ended December 31, 2019, 2018 and 2017, was $ 46 million, $ 43 million and $ 36 million, respectively, and reported in commissions and other expenses on our Consolidated Statements of Comprehensive Income (Loss) . As of December 31, 2019, the net book value of assets recorded as finance leases was $ 128 million, and the associated accumulated amortization was $ 345 million. These transactions have been classified as other assets on our Consolidated Balance Sheets. These assets will continue to be amortized on a straight-line basis over the assets’ remaining lives. The weighted-average discount rate and remaining lease term were 2.2 % and 2 years, respectively, as of December 31, 2019. Finance lease expense (in millions) was as follows: For the Year Ended December 31, 2019 Amortization of ROU assets (1) $ 67 Interest on lease liabilities (2) 13 Total $ 80 (1) Amortization of ROU assets is reported in commissions and other expenses on our Consolidated Statements of Comprehensive Income (Loss). (2) Interest on lease liabilities is reported in interest and debt expense on our Consolidated Statements of Comprehensive Income (Loss). The table below presents cash flow information (in millions) related to leases: For the Year Ended December 31, 2019 Supplemental Cash Flow Information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 47 Financing cash flows from finance leases 96 Supplemental Non-cash Information ROU assets obtained in exchange for new lease obligations: Operating leases $ 78 Our future minimum lease payments (in millions) under non-cancellable leases as of December 31, 2019, were as follows: Operating Finance Leases Leases 2020 $ 44 $ 56 2021 40 66 2022 35 66 2023 32 90 2024 26 17 Thereafter 65 12 Total future minimum lease payments 242 307 Less: Amount representing interest 34 26 Present value of minimum lease payments $ 208 $ 281 As of December 31, 2019, we had no leases that had not yet commenced. Vulnerability from Concentrations As of December 31, 2019, we did not have a concentration of: business transactions with a particular customer or lender; sources of supply of labor or services used in the business; or a market or geographic area in which business is conducted that makes us vulnerable to an event that is at least reasonably possible to occur in the near term and which could cause a severe impact to our financial condition. For information on our investment and reinsurance concentrations, see Notes 5 and 9, respectively. Other Contingency Matters State guaranty funds assess insurance companies to cover losses to contract holders of insolvent or rehabilitated companies. Mandatory assessments may be partially recovered through a reduction in future premium taxes in some states. We have accrued for expected assessments and the related reductions in future state premium taxes, which net to assessments (recoveries) of $( 13 ) million and $( 18 ) million as of December 31, 2019 and 2018, respectively. |
Shares and Stockholder's Equity
Shares and Stockholder's Equity | 12 Months Ended |
Dec. 31, 2019 | |
Shares and Stockholder's Equity [Abstract] | |
Shares and Stockholder's Equity | 15. 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 Years Ended December 31, 2019 2018 2017 Unrealized Gain (Loss) on AFS Securities Balance as of beginning-of-year $ 536 $ 3,283 $ 1,687 Cumulative effect from adoption of new accounting standards - 634 - Unrealized holding gains (losses) arising during the year 8,856 ( 5,995 ) 2,872 Change in foreign currency exchange rate adjustment 46 ( 107 ) 134 Change in DAC, VOBA, DSI, future contract benefits and other contract holder funds ( 2,460 ) 1,748 ( 703 ) Income tax benefit (expense) ( 1,370 ) 923 ( 745 ) Less: Reclassification adjustment for gains (losses) included in net income (loss) ( 26 ) ( 44 ) ( 40 ) Associated amortization of DAC, VOBA, DSI and DFEL ( 11 ) ( 19 ) ( 19 ) Income tax benefit (expense) 8 13 21 Balance as of end-of-year $ 5,637 $ 536 $ 3,283 Unrealized OTTI on AFS Securities Balance as of beginning-of-year $ 29 $ 39 $ 22 (Increases) attributable to: Cumulative effect from adoption of new accounting standards - 9 - Gross OTTI recognized in OCI during the year ( 14 ) - - Change in DAC, VOBA, DSI and DFEL 1 - - Income tax benefit (expense) 3 - - Decreases attributable to: Changes in fair value, sales, maturities or other settlements of AFS securities 30 ( 18 ) 34 Change in DAC, VOBA, DSI and DFEL ( 2 ) ( 5 ) ( 7 ) Income tax benefit (expense) ( 7 ) 4 ( 10 ) Balance as of end-of-year $ 40 $ 29 $ 39 Unrealized Gain (Loss) on Derivative Instruments Balance as of beginning-of-year $ 119 $ 27 $ 93 Cumulative effect from adoption of new accounting standard - 6 - Unrealized holding gains (losses) arising during the year 181 40 63 Change in foreign currency exchange rate adjustment ( 52 ) 111 ( 137 ) Change in DAC, VOBA, DSI and DFEL ( 5 ) ( 14 ) 1 Income tax benefit (expense) ( 26 ) ( 29 ) 26 Less: Reclassification adjustment for gains (losses) included in net income (loss) 47 31 31 Associated amortization of DAC, VOBA, DSI and DFEL ( 2 ) ( 3 ) ( 2 ) Income tax benefit (expense) ( 9 ) ( 6 ) ( 10 ) Balance as of end-of-year $ 181 $ 119 $ 27 Funded Status of Employee Benefit Plans Balance as of beginning-of-year $ ( 25 ) $ ( 22 ) $ ( 20 ) Cumulative effect from adoption of new accounting standard - ( 5 ) - Adjustment arising during the year 4 3 ( 4 ) Income tax benefit (expense) ( 1 ) ( 1 ) 2 Balance as of end-of-year $ ( 22 ) $ ( 25 ) $ ( 22 ) The following summarizes the reclassifications out of AOCI (in millions) and the associated line item in the Consolidated Statements of Comprehensive Income (Loss): For the Years Ended December 31, 2019 2018 2017 Unrealized Gain (Loss) on AFS Securities Gross reclassification $ ( 26 ) $ ( 44 ) $ ( 40 ) Total realized gain (loss) Associated amortization of DAC, VOBA, DSI and DFEL ( 11 ) ( 19 ) ( 19 ) Total realized gain (loss) Reclassification before income Income (loss) from continuing tax benefit (expense) ( 37 ) ( 63 ) ( 59 ) operations before taxes Income tax benefit (expense) 8 13 21 Federal income tax expense (benefit) Reclassification, net of income tax $ ( 29 ) $ ( 50 ) $ ( 38 ) Net income (loss) Unrealized OTTI on AFS Securities Gross reclassification $ 4 $ 7 $ 5 Total realized gain (loss) Change in DAC, VOBA, DSI and DFEL - - ( 1 ) Total realized gain (loss) Reclassification before income Income (loss) from continuing tax benefit (expense) 4 7 4 operations before taxes Income tax benefit (expense) ( 1 ) ( 1 ) ( 1 ) Federal income tax expense (benefit) Reclassification, net of income tax $ 3 $ 6 $ 3 Net income (loss) Unrealized Gain (Loss) on Derivative Instruments Gross reclassifications: Interest rate contracts $ 3 $ 4 $ 4 Net investment income Foreign currency contracts 35 27 18 Net investment income Foreign currency contracts 9 - 9 Total realized gain (loss) Total gross reclassifications 47 31 31 Associated amortization of DAC, VOBA, DSI and DFEL ( 2 ) ( 3 ) ( 2 ) Commissions and other expenses Reclassifications before income Income (loss) from continuing tax benefit (expense) 45 28 29 operations before taxes Income tax benefit (expense) ( 9 ) ( 6 ) ( 10 ) Federal income tax expense (benefit) Reclassifications, net of income tax $ 36 $ 22 $ 19 Net income (loss) |
Commissions and Other Expenses
Commissions and Other Expenses | 12 Months Ended |
Dec. 31, 2019 | |
Commissions And Other Expenses [Abstract] | |
Commissions and Other Expenses | 16. Commissions and Other Expenses Details underlying commissions and other expenses (in millions) were as follows: For the Years Ended December 31, 2019 2018 2017 Commissions $ 2,566 $ 2,271 $ 1,998 General and administrative expenses 2,152 1,910 1,715 Expenses associated with reserve financing and unrelated LOCs 52 64 57 DAC and VOBA deferrals and interest, net of amortization ( 586 ) ( 436 ) ( 390 ) Broker-dealer expenses 372 358 329 Specifically identifiable intangible asset amortization 26 9 4 Taxes, licenses and fees 353 322 254 Acquisition and integration costs related to mergers and acquisitions 130 85 - Total $ 5,065 $ 4,583 $ 3,967 |
Retirement and Deferred Compens
Retirement and Deferred Compensation Plans | 12 Months Ended |
Dec. 31, 2019 | |
Retirement and Deferred Compensation Plans [Abstract] | |
Retirement and Deferred Compensation Plans | 17. Retirement and Deferred Compensation Plans Defined Benefit Pension and Other Postretirement Benefit Plans We maintain defined benefit pension plans in which certain agents are participants. These defined benefit pension plans are closed to new entrants and existing participants do not accrue any additional benefits. We comply with applicable minimum funding requirements. In accordance with such practice, we were not required to make contributions but elected to contribute zero and $ 8 million for the years ended December 31, 2019 and 2018, respectively. We do not expect to be required to make any contributions to these pension plans in 2020. We sponsor other postretirement benefit plans that provide health care and life insurance to certain retired agents. Total net periodic cost (recovery) for these plans was $ 6 million, $ 6 million and $ 5 million during 2019, 2018 and 2017, respectively. In 2020, we expect the plans to make benefit payments of approximately $ 10 million. Information (in millions) with respect to these plans was as follows: As of or For the Years Ended December 31, 2019 2018 2019 2018 Other Postretirement Pension Plans Benefit Plans Fair value of plan assets $ 109 $ 107 $ 9 $ 8 Projected benefit obligation 115 112 10 10 Funded status $ ( 6 ) $ ( 5 ) $ ( 1 ) $ ( 2 ) Amounts Recognized on the Consolidated Balance Sheets Other assets $ - $ - $ - $ - Other liabilities ( 6 ) ( 5 ) ( 1 ) ( 2 ) Net amount recognized $ ( 6 ) $ ( 5 ) $ ( 1 ) $ ( 2 ) Weighted-Average Assumptions Benefit obligations: Weighted-average discount rate 3.50 % 4.50 % 3.50 % 4.50 % Net periodic benefit cost: Weighted-average discount rate 4.50 % 4.00 % 4.50 % 4.00 % Expected return on plan assets 4.50 % 4.50 % 6.50 % 6.50 % The weighted average discount rate was determined based on a corporate yield curve as of December 31, 2019, and projected benefit obligation cash flows. The expected return on plan assets was determined based on historical and expected future returns of the various asset categories, using the plans’ target plan allocation. We reevaluate these assumptions each plan year. The following summarizes our fair value measurements of our benefit plans’ assets (in millions) on a recurring basis by asset category: As of December 31, 2019 2018 Fixed maturity securities: Corporate bonds $ - $ 1 U.S. government bonds 83 87 Cash and invested cash 26 19 Other investments 9 8 Total $ 118 $ 115 See “Fair Value Measurement” in Note 1 for discussion on how we categorize our pension plans’ assets into the three-level fair value hierarchy. See “Financial Instruments Carried at Fair Value” in Note 20 for a summary of our fair value measurement of our pension plans’ assets by the three-level fair value hierarchy. Participation in Defined Benefit Pension and Other Postretirement Benefit Plans We participate in defined benefit pension plans that are sponsored by LNC for certain employees and non-employee directors. These defined benefit pension plans are closed to new entrants, and existing participants do not accrue any additional benefits. We also participate in other postretirement benefit plans sponsored by LNC that provide health care and life insurance to certain retired employees. Our expense (benefit) for these plans was $ 10 million, $( 4 ) million and $ 7 million for the years ended December 31, 2019, 2018 and 2017, respectively. Defined Contribution Plans We sponsor tax-qualified defined contribution plans for eligible agents that are administered in accordance with the plan documents and various limitations under section 401(a) of the Internal Revenue Code of 1986. We also participate in defined contribution plans sponsored by LNC for eligible employees. Our expense for these plans was $ 101 million, $ 90 million and $ 85 million, for the years ended December 31, 2019, 2018 and 2017, respectively. Deferred Compensation Plans We sponsor non-qualified, unfunded, deferred compensation plans for certain current and former agents. Certain current employees participate in non-qualified, unfunded, deferred compensation plans sponsored by LNC. The results of certain notional investment options within some of the plans are hedged by total return swaps. Our expenses increase or decrease in direct proportion to the change in market value of the participants’ investment options. Participants of certain plans are able to select LNC stock as a notional investment option; however, it is not hedged by the total return swaps and is a primary source of expense volatility related to these plans. Our expense for these plans was $ 22 million, $ 12 million and $ 27 million for the years ended December 31, 2019, 2018 and 2017, respectively. For further discussion of total return swaps related to our deferred compensation plans, see Note 6. Information (in millions) with respect to these plans was as follows: As of December 31, 2019 2018 Total liabilities (1) $ 579 $ 487 Investments dedicated to fund liabilities (2) 202 170 (1) Reported in other liabilities on our Consolidated Balance Sheets. (2) Reported in other assets on our Consolidated Balance Sheets. |
Stock-Based Incentive Compensat
Stock-Based Incentive Compensation Plans | 12 Months Ended |
Dec. 31, 2019 | |
Stock-Based Incentive Compensation Plans [Abstract] | |
Stock-Based Incentive Compensation Plans | 18. Stock-Based Incentive Compensation Plans Our employees and agents are included in LNC’s various stock-based incentive compensation plans that provide for the issuance of stock options, performance shares, stock appreciation rights (“SARs”) and restricted stock units (“RSUs”). LNC issues new shares to satisfy option exercises and vested performance shares and RSUs. Total compensation expense (in millions) by award type for stock-based incentive compensation plans was as follows: For the Years Ended December 31, 2019 2018 2017 Stock options $ 8 $ 5 $ 9 Performance shares 16 14 12 SARs - ( 1 ) 2 RSUs 35 30 24 Total $ 59 $ 48 $ 47 Recognized tax benefit $ 12 $ 10 $ 16 |
Statutory Information and Restr
Statutory Information and Restrictions | 12 Months Ended |
Dec. 31, 2019 | |
Statutory Information and Restrictions [Abstract] | |
Statutory Information and Restrictions | 19. Statutory Information and Restrictions We prepare financial statements in accordance with statutory accounting principles (“SAP”) prescribed or permitted by the insurance departments of our respective states of domicile, which may vary materially from GAAP. Prescribed SAP includes the Accounting Practices and Procedures Manual of the National Association of Insurance Commissioners (“NAIC”) as well as state laws, regulations and administrative rules. Permitted SAP encompasses all accounting practices not so prescribed. The principal differences between statutory financial statements and financial statements prepared in accordance with GAAP are that statutory financial statements do not reflect DAC, some bond portfolios may be carried at amortized cost, assets and liabilities are presented net of reinsurance, contract holder liabilities are generally valued using more conservative assumptions and certain assets are non-admitted. We are subject to the applicable laws and regulations of our respective states of domicile. Changes in these laws and regulations could change capital levels or capital requirements for the Company. Statutory capital and surplus, net gain (loss) from operations, after-tax, net income (loss) and dividends to the LNC holding company amounts (in millions) below consist of all or a combination of the following entities: LNL, LLANY, LLACB, Lincoln Reinsurance Company of South Carolina, Lincoln Reinsurance Company of Vermont I, Lincoln Reinsurance Company of Vermont III, Lincoln Reinsurance Company of Vermont IV, Lincoln Reinsurance Company of Vermont V, Lincoln Reinsurance Company of Vermont VI and Lincoln Reinsurance Company of Vermont VII. As of December 31, 2019 2018 U.S. capital and surplus $ 8,425 $ 8,330 For the Years Ended December 31, 2019 2018 2017 U.S. net gain (loss) from operations, after-tax $ 379 $ 686 $ 1,312 U.S. net income (loss) 359 1,013 1,452 U.S. dividends to LNC holding company 600 910 954 Comparison of 2019 to 2018 Statutory net income (loss) decreased due primarily to lower dividends from affiliates, unfavorable reserve strain on certain products, and integration costs incurred as part of the acquisition of Liberty Life. See Note 3 for information regarding the acquisition. Comparison of 2018 to 2017 Statutory net income (loss) decreased due primarily to lower dividends from affiliates, acquisition and integration costs incurred as part of the acquisition of Liberty Life and unfavorable reserve strain on certain products. State Prescribed and Permitted Practices The states of domicile for LNL and LLANY, Indiana and New York, respectively, have adopted certain prescribed accounting practices that differ from those found in NAIC SAP. These prescribed practices are the use of continuous Commissioners’ Annuity Reserve Valuation Method in the calculation of reserves as prescribed by the state of New York, the calculation of reserves on universal life policies based on the Indiana universal life method as prescribed by the state of Indiana for policies issued before January 1, 2006, and the use of a more conservative valuation interest rate on certain annuities prescribed by the states of Indiana and New York. The Vermont reinsurance subsidiaries also have certain accounting practices permitted by the state of Vermont that differ from those found in NAIC SAP. One permitted practice involves accounting for the lesser of the face amount of all amounts outstanding under an LOC and the value of the Valuation of Life Insurance Policies Model Regulation (“XXX”) additional statutory reserves as an admitted asset and a form of surplus as of December 31, 2019 and 2018. Another permitted practice involves the acquisition of an LLC note in exchange for a variable value surplus note that is recognized as an admitted asset and a form of surplus as of December 31, 2019. Lastly, the state of Vermont has permitted a practice to account for certain excess of loss reinsurance treaties with unaffiliated reinsurers as an asset and form of surplus as of December 31, 2019. These permitted practices are related to structures that continue to be allowed in accordance with the grandfathered structures under the provisions of Actuarial Guideline 48 (“AG48”) or are compliant under AG48 requirements. The favorable (unfavorable) effects on statutory surplus compared to NAIC statutory surplus from the use of these prescribed and permitted practices (in millions) were as follows: As of December 31, 2019 2018 State Prescribed Practices Calculation of reserves using the Indiana universal life method $ 24 $ 36 Conservative valuation rate on certain annuities ( 49 ) ( 55 ) Vermont Subsidiaries Permitted Practices (1) Lesser of LOC and XXX additional reserve as surplus 1,947 1,959 LLC notes and variable value surplus notes 1,648 1,634 Excess of loss reinsurance treaties 419 330 (1) These permitted practices are related to structures that continue to be allowed in accordance with the grandfathered structures under the provisions of AG48 or are compliant under AG48 requirements. The NAIC has adopted RBC requirements for life insurance companies to evaluate the adequacy of statutory capital and surplus in relation to investment and insurance risks. The requirements provide a means of measuring the minimum amount of statutory surplus appropriate for an insurance company to support its overall business operations based on its size and risk profile. Under RBC requirements, regulatory compliance is determined by the ratio of a company’s total adjusted capital, as defined by the NAIC, to its company action level of RBC (known as the “RBC ratio”), also as defined by the NAIC. The company action level may be triggered if the RBC ratio is between 75 % and 100 %, which would require the insurer to submit a plan to the regulator detailing corrective action it proposes to undertake. As of December 31, 2019, the Company’s RBC ratio was in excess of four times the aforementioned company action level. We are subject to certain insurance department regulatory restrictions as to the transfer of funds and payment of dividends to the holding company. Under Indiana laws and regulations, LNL may pay dividends to LNC without prior approval of the Indiana Insurance Commissioner (the “Commissioner”), only from unassigned surplus and must receive prior approval of the Commissioner to pay a dividend if such dividend, along with all other dividends paid within the preceding 12 consecutive months, would exceed the statutory limitation. The current statutory limitation is the greater of 10 % of the insurer’s contract holders’ surplus, as shown on its last annual statement on file with the Commissioner or the insurer’s statutory net gain from operations for the previous 12 months, but in no event to exceed statutory unassigned surplus. Indiana law gives the Commissioner broad discretion to disapprove requests for dividends in excess of these limits. LNL’s subsidiaries, LLANY, a New York-domiciled insurance company, and LLACB, a New Hampshire-domiciled company, are bound by similar restrictions, under the laws of New York and New Hampshire, respectively. Under both New York and New Hampshire law, the applicable statutory limitation on dividends is equal to the lesser of 10 % of surplus to contract holders as of the immediately preceding calendar year or net gain from operations for the immediately preceding calendar year, not including realized capital gains. We expect that we could pay dividends to LNC of approximately $ 815 million in 2020 without prior approval from the Commissioner of Insurance. All payments of principal and interest on surplus notes must be approved by the respective Commissioner of Insurance. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value of Financial Instruments [Abstract] | |
Fair Value of Financial Instruments | 20. Fair Value of Financial Instruments The carrying values and estimated fair values of our financial instruments (in millions) were as follows: As of December 31, 2019 As of December 31, 2018 Carrying Fair Carrying Fair Value Value Value Value Assets Fixed maturity AFS securities $ 103,773 $ 103,773 $ 92,787 $ 92,787 Trading securities 4,602 4,602 1,869 1,869 Equity securities 103 103 99 99 Mortgage loans on real estate 16,244 16,774 13,190 13,020 Derivative investments (1) 1,911 1,911 1,081 1,081 Other investments 2,554 2,554 1,951 1,951 Cash and invested cash 1,879 1,879 1,848 1,848 Reinsurance related embedded derivatives - - 188 188 Other assets: GLB direct embedded derivatives 450 450 123 123 GLB ceded embedded derivatives 60 60 72 72 Indexed annuity ceded embedded derivatives 927 927 902 902 Separate account assets 153,571 153,571 132,833 132,833 Liabilities Future contract benefits – indexed annuity and IUL contracts embedded derivatives ( 2,585 ) ( 2,585 ) ( 1,305 ) ( 1,305 ) Other contract holder funds: Remaining guaranteed interest and similar contracts ( 1,900 ) ( 1,900 ) ( 542 ) ( 542 ) Account values of certain investment contracts ( 38,606 ) ( 46,781 ) ( 34,500 ) ( 36,321 ) Short-term debt ( 609 ) ( 609 ) ( 288 ) ( 288 ) Long-term debt ( 2,414 ) ( 2,714 ) ( 2,401 ) ( 2,519 ) Reinsurance related embedded derivatives ( 375 ) ( 375 ) - - Other liabilities: Derivative liabilities (1) ( 238 ) ( 238 ) ( 226 ) ( 226 ) GLB ceded embedded derivatives ( 510 ) ( 510 ) ( 196 ) ( 196 ) Benefit Plans’ Assets (2) 118 118 115 115 (1) We have master netting agreements with each of our derivative counterparties, which allow for the netting of our derivative asset and liability positions by counterparty. (2) Included in the funded statuses of the benefit plans, which is reported in other liabilities on our Consolidated Balance Sheets. Refer to Note 17 for information regarding our benefit plans. Valuation Methodologies and Associated Inputs for Financial Instruments Not Carried at Fair Value The following discussion outlines the methodologies and assumptions used to determine the fair value of our financial instruments not carried at fair value on our Consolidated Balance Sheets. Considerable judgment is required to develop these assumptions used to measure fair value. Accordingly, the estimates shown are not necessarily indicative of the amounts that would be realized in a one-time, current market exchange of all of our financial instruments. Mortgage Loans on Real Estate The fair value of mortgage loans on real estate is established using a discounted cash flow method based on credit rating, maturity and future income. The ratings for mortgages in good standing are based on property type, location, market conditions, occupancy, debt-service coverage, loan-to-value, quality of tenancy, borrower and payment record. The fair value for impaired mortgage loans is based on the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s market price or the fair value of the collateral if the loan is collateral dependent. The inputs used to measure the fair value of our mortgage loans on real estate are classified as Level 2 within the fair value hierarchy. Other Investments The carrying value of our assets classified as other investments approximates fair value. Other investments includes primarily LPs and other privately held investments that are accounted for using the equity method of accounting and the carrying value is based on our proportional share of the net assets of the LPs. Other investments also includes Federal Home Loan Bank (“FHLB”) stock carried at cost and periodically evaluated for impairment based on ultimate recovery of par value. The inputs used to measure the fair value of our LPs, other privately held investments and FHLB stock are classified as Level 3 within the fair value hierarchy. The remaining assets in other investments include cash collateral receivables and securities that are not LPs or other privately held investments. The inputs used to measure the fair value of these assets are classified as Level 1 within the fair value hierarchy. Separate Account Assets Separate account assets are primarily carried at fair value. A portion of our separate account assets includes LPs, which are accounted for using the equity method of accounting. The carrying value is based on our proportional share of the net assets of the LPs and approximates fair value. The inputs used to measure the fair value of the separate account asset LPs are classified as Level 3 within the fair value hierarchy. Other Contract Holder Funds Other contract holder funds include remaining guaranteed interest and similar contracts and account values of certain investment contracts. The fair value for the remaining guaranteed interest and similar contracts is estimated using discounted cash flow calculations as of the balance sheet date. These calculations are based on interest rates currently offered on similar contracts with maturities that are consistent with those remaining for the contracts being valued. As of December 31, 2019 and 2018, 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 no t have any assets or liabilities measured at fair value on a nonrecurring basis as of December 31, 2019 or 2018, and we noted no changes in our valuation methodologies between these periods. The following summarizes our financial instruments carried at fair value (in millions) on a recurring basis by the fair value hierarchy levels described above: As of December 31, 2019 Quoted Prices in Active Markets for Significant Significant Identical Observable Unobservable Total Assets Inputs Inputs Fair (Level 1) (Level 2) (Level 3) Value Assets Investments: Fixed maturity AFS securities: Corporate bonds $ - $ 80,801 $ 6,978 $ 87,779 U.S. government bonds 391 7 5 403 State and municipal bonds - 5,685 - 5,685 Foreign government bonds - 298 90 388 RMBS - 2,997 11 3,008 CMBS - 1,082 1 1,083 ABS - 4,615 268 4,883 Hybrid and redeemable preferred securities 77 389 78 544 Trading securities 50 3,886 666 4,602 Equity securities 25 48 30 103 Derivative investments (1) - 1,089 1,735 2,824 Cash and invested cash - 1,879 - 1,879 Other assets: GLB direct embedded derivatives - - 450 450 GLB ceded embedded derivatives - - 60 60 Indexed annuity ceded embedded derivatives - - 927 927 Separate account assets 644 152,916 - 153,560 Total assets $ 1,187 $ 255,692 $ 11,299 $ 268,178 Liabilities Future contract benefits – indexed annuity and IUL contracts embedded derivatives $ - $ - $ ( 2,585 ) $ ( 2,585 ) Reinsurance related embedded derivatives - ( 375 ) - ( 375 ) Other liabilities: Derivative liabilities (1) - ( 284 ) ( 867 ) ( 1,151 ) GLB ceded embedded derivatives - - ( 510 ) ( 510 ) Total liabilities $ - $ ( 659 ) $ ( 3,962 ) $ ( 4,621 ) Benefit Plans’ Assets $ - $ 118 $ - $ 118 As of December 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 $ - $ 73,897 $ 5,652 $ 79,549 U.S. government bonds 368 18 - 386 State and municipal bonds - 5,184 - 5,184 Foreign government bonds - 335 109 444 RMBS - 3,157 7 3,164 CMBS - 801 2 803 ABS - 2,544 134 2,678 Hybrid and redeemable preferred securities 66 438 75 579 Trading securities 43 1,759 67 1,869 Equity securities 16 58 25 99 Derivative investments (1) - 636 704 1,340 Cash and invested cash - 1,848 - 1,848 Reinsurance related embedded derivatives - 188 - 188 Other assets: GLB direct embedded derivatives - - 123 123 GLB ceded embedded derivatives - - 72 72 Indexed annuity ceded embedded derivatives - - 902 902 Separate account assets 665 132,135 - 132,800 Total assets $ 1,158 $ 222,998 $ 7,872 $ 232,028 Liabilities Future contract benefits – indexed annuity and IUL contracts embedded derivatives $ - $ - $ ( 1,305 ) $ ( 1,305 ) Other liabilities: Derivative liabilities (1) - ( 314 ) ( 171 ) ( 485 ) GLB ceded embedded derivatives - - ( 196 ) ( 196 ) Total liabilities $ - $ ( 314 ) $ ( 1,672 ) $ ( 1,986 ) Benefit Plans’ Assets $ - $ 115 $ - $ 115 (1) Derivative investment assets and liabilities are presented within the fair value hierarchy on a gross basis by derivative type and not on a master netting basis by counterparty . The following summarizes changes to our financial instruments carried at fair value (in millions) and classified within Level 3 of the fair value hierarchy. This summary excludes any effect of amortization of DAC, VOBA, DSI and DFEL. The gains and losses below may include changes in fair value due in part to observable inputs that are a component of the valuation methodology. For the Year Ended December 31, 2019 Gains Issuances, Transfers Items (Losses) Sales, Into or Included in Maturities, Out Beginning in OCI Settlements, of Ending Fair Net and Calls, Level 3, Fair Value Income Other (1) Net Net (3) Value Investments: (5) Fixed maturity AFS securities: Corporate bonds $ 5,652 $ 3 $ 177 $ 1,195 $ ( 49 ) $ 6,978 U.S. government bonds - - - - 5 5 Foreign government bonds 109 - 6 ( 25 ) - 90 RMBS 7 - - 21 ( 17 ) 11 CMBS 2 1 - 5 ( 7 ) 1 ABS 134 - 1 619 ( 486 ) 268 Hybrid and redeemable preferred securities 75 - 3 - - 78 Trading securities 67 17 - 850 ( 268 ) 666 Equity securities 25 ( 12 ) - 17 - 30 Derivative investments 533 9 164 162 - 868 Other assets: (6) GLB direct embedded derivatives 123 327 - - - 450 GLB ceded embedded derivatives 72 ( 12 ) - - - 60 Indexed annuity ceded embedded derivatives 902 158 - ( 133 ) - 927 Future contract benefits – indexed annuity and IUL contracts embedded derivatives (6) ( 1,305 ) ( 900 ) - ( 380 ) - ( 2,585 ) Other liabilities – GLB ceded embedded derivatives (6) ( 196 ) ( 314 ) - - - ( 510 ) Total, net $ 6,200 $ ( 723 ) $ 351 $ 2,331 $ ( 822 ) $ 7,337 For the Year Ended December 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 (2) Net (3)(4) Value Investments: (5) Fixed maturity AFS securities: Corporate bonds $ 5,350 $ 10 $ ( 198 ) $ 542 $ ( 52 ) $ 5,652 U.S. government bonds 5 - - ( 5 ) - - Foreign government bonds 110 - ( 1 ) - - 109 RMBS 12 - - 7 ( 12 ) 7 CMBS 6 - - 35 ( 39 ) 2 ABS 117 - - 223 ( 206 ) 134 Hybrid and redeemable preferred securities 76 - ( 1 ) - - 75 Equity AFS securities 161 - - - ( 161 ) - Trading securities 49 ( 5 ) - 30 ( 7 ) 67 Equity securities - ( 1 ) - - 26 25 Derivative investments 30 168 ( 74 ) 409 - 533 Other assets: (6) GLB direct embedded derivatives 903 ( 780 ) - - - 123 GLB ceded embedded derivatives 51 21 - - - 72 Indexed annuity ceded embedded derivatives 11 ( 117 ) - 1,008 - 902 Future contract benefits – indexed annuity and IUL contracts embedded derivatives (6) ( 1,418 ) 198 - ( 85 ) - ( 1,305 ) Other liabilities – GLB ceded embedded derivatives (6) ( 954 ) 758 - - - ( 196 ) Total, net $ 4,509 $ 252 $ ( 274 ) $ 2,164 $ ( 451 ) $ 6,200 For the Year Ended December 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 (3) Value Investments: (5) Fixed maturity AFS securities: Corporate bonds $ 4,809 $ 17 $ 199 $ ( 45 ) $ 370 $ 5,350 U.S. government bonds - - - - 5 5 Foreign government bonds 111 - ( 1 ) - - 110 RMBS 3 - - 19 ( 10 ) 12 CMBS 7 - 1 54 ( 56 ) 6 ABS 101 - - 124 ( 108 ) 117 State and municipal bonds - ( 1 ) - - 1 - Hybrid and redeemable preferred securities 76 - 14 - ( 14 ) 76 Equity AFS securities 177 1 ( 3 ) ( 13 ) ( 1 ) 161 Trading securities 65 3 8 ( 26 ) ( 1 ) 49 Derivative investments ( 93 ) ( 27 ) 127 23 - 30 Other assets: (6) GLB direct embedded derivatives - 903 - - - 903 GLB ceded embedded derivatives 371 ( 320 ) - - - 51 Indexed annuity ceded embedded derivatives - - - 11 - 11 Future contract benefits – indexed annuity and IUL contracts embedded derivatives (6) ( 1,139 ) ( 400 ) - 121 - ( 1,418 ) Other liabilities: (6) GLB direct embedded derivatives ( 371 ) 371 - - - - GLB ceded embedded derivatives - ( 954 ) - - - ( 954 ) Total, net $ 4,117 $ ( 407 ) $ 345 $ 268 $ 186 $ 4,509 (1) The changes in fair value of the interest rate swaps are offset by an adjustment to derivative investments (see Note 6). (2) Issuances, sales, maturities, settlements, calls, net, includes financial instruments acquired in the Liberty Life transaction as follows: corporate bonds of $ 67 million and ABS of $ 17 million. (3) Transfers into or out of Level 3 for fixed maturity AFS and trading securities are reported at amortized cost as of the beginning-of-year. For fixed maturity AFS and trading securities, the difference between beginning-of-year amortized cost and beginning-of-year fair value was included in OCI and earnings, respectively, in the prior years. (4) Transfers into or out of Level 3 for FHLB stock between equity securities and other investments are reported at cost on our Consolidated Balance Sheets. (5) 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). (6) 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 Year Ended December 31, 2019 Issuances Sales Maturities Settlements Calls Total Investments: Fixed maturity AFS securities: Corporate bonds $ 1,502 $ ( 45 ) $ ( 78 ) $ ( 154 ) $ ( 30 ) $ 1,195 Foreign government bonds - - ( 25 ) - - ( 25 ) RMBS 21 - - - - 21 CMBS 7 - - ( 2 ) - 5 ABS 646 ( 8 ) - ( 19 ) - 619 Trading securities 872 - - ( 22 ) - 850 Equity securities 50 ( 33 ) - - - 17 Derivative investments 555 ( 61 ) ( 332 ) - - 162 Other assets – indexed annuity ceded embedded derivatives 56 - - ( 189 ) - ( 133 ) Future contract benefits – indexed annuity and IUL contracts embedded derivatives ( 591 ) - - 211 - ( 380 ) Total, net $ 3,118 $ ( 147 ) $ ( 435 ) $ ( 175 ) $ ( 30 ) $ 2,331 For the Year Ended December 31, 2018 Issuances Sales Maturities Settlements Calls Total Investments: Fixed maturity AFS securities: Corporate bonds $ 1,068 $ ( 171 ) $ ( 3 ) $ ( 275 ) $ ( 77 ) $ 542 U.S. government bonds - ( 5 ) - - - ( 5 ) RMBS 7 - - - - 7 CMBS 39 - - ( 4 ) - 35 ABS 240 ( 17 ) - - - 223 Trading securities 54 ( 24 ) - - - 30 Equity securities 1 ( 1 ) - - - - Derivative investments 365 465 ( 421 ) - - 409 Other assets – indexed annuity ceded embedded derivatives 1,030 - - ( 22 ) - 1,008 Future contract benefits – indexed annuity and IUL contracts embedded derivatives ( 284 ) - - 199 - ( 85 ) Total, net $ 2,520 $ 247 $ ( 424 ) $ ( 102 ) $ ( 77 ) $ 2,164 For the Year Ended December 31, 2017 Issuances Sales Maturities Settlements Calls Total Investments: Fixed maturity AFS securities: Corporate bonds $ 850 $ ( 448 ) $ ( 98 ) $ ( 205 ) $ ( 144 ) $ ( 45 ) RMBS 19 - - - - 19 CMBS 55 - - ( 1 ) - 54 ABS 124 - - - - 124 Equity AFS securities 18 ( 31 ) - - - ( 13 ) Trading securities 2 ( 27 ) - ( 1 ) - ( 26 ) Derivative investments 197 233 ( 407 ) - - 23 Other assets – indexed annuity ceded embedded derivatives 11 - - - - 11 Future contract benefits – indexed annuity and IUL contracts embedded derivatives ( 71 ) - - 192 - 121 Total, net $ 1,205 $ ( 273 ) $ ( 505 ) $ ( 15 ) $ ( 144 ) $ 268 The following summarizes changes in unrealized gains (losses) included in net income, excluding any effect of amortization of DAC, VOBA, DSI and DFEL and changes in future contract benefits, related to financial instruments carried at fair value classified within Level 3 that we still held (in millions): For the Years Ended December 31, 2019 2018 2017 Derivative investments $ 168 $ 90 $ ( 266 ) Embedded derivatives: Indexed annuity and IUL contracts ( 97 ) ( 38 ) ( 14 ) Other assets – GLB direct and ceded 1,015 ( 75 ) 1,904 Other liabilities – GLB direct and ceded ( 1,015 ) 75 ( 1,904 ) Total, net (1) $ 71 $ 52 $ ( 280 ) (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 Year Ended December 31, 2019 Transfers Transfers Into Out of Level 3 Level 3 Total Investments: Fixed maturity AFS securities: Corporate bonds $ 173 $ ( 222 ) $ ( 49 ) U.S. government bonds 5 - 5 RMBS - ( 17 ) ( 17 ) CMBS - ( 7 ) ( 7 ) ABS 9 ( 495 ) ( 486 ) Trading securities 5 ( 273 ) ( 268 ) Total, net $ 192 $ ( 1,014 ) $ ( 822 ) For the Year Ended December 31, 2018 Transfers Transfers Into Out of Level 3 Level 3 Total Investments: Fixed maturity AFS securities: Corporate bonds $ 78 $ ( 130 ) $ ( 52 ) RMBS - ( 12 ) ( 12 ) CMBS 1 ( 40 ) ( 39 ) ABS - ( 206 ) ( 206 ) Equity AFS securities - ( 161 ) ( 161 ) Trading securities - ( 7 ) ( 7 ) Equity securities 26 - 26 Total, net $ 105 $ ( 556 ) $ ( 451 ) For the Year Ended December 31, 2017 Transfers Transfers Into Out of Level 3 Level 3 Total Investments: Fixed maturity AFS securities: Corporate bonds $ 458 $ ( 88 ) $ 370 U.S. government bonds 5 - 5 RMBS - ( 10 ) ( 10 ) CMBS 3 ( 59 ) ( 56 ) ABS 44 ( 152 ) ( 108 ) State and municipal bonds 2 ( 1 ) 1 Hybrid and redeemable preferred securities - ( 14 ) ( 14 ) Equity AFS securities - ( 1 ) ( 1 ) Trading securities 4 ( 5 ) ( 1 ) Total, net $ 516 $ ( 330 ) $ 186 Transfers into and out of Level 3 are generally the result of observable market information on a security no longer being available or becoming available to our pricing vendors. For the years ended December 31, 2019, 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 also included FHLB stock between equity securities and other investments at cost on our Consolidated Balance Sheets. The following summarizes the fair value (in millions), valuation techniques and significant unobservable inputs of the Level 3 fair value measurements as of December 31, 2019: Fair Valuation Significant Assumption or Value Technique Unobservable Inputs Input Ranges Assets Investments: Fixed maturity AFS and trading securities: Corporate bonds $ 2,996 Discounted cash flow Liquidity/duration adjustment (1) 0.1 % - 6.4 % Foreign government bonds 52 Discounted cash flow Liquidity/duration adjustment (1) 2.1 % - 2.5 % ABS 22 Discounted cash flow Liquidity/duration adjustment (1) 3.0 % - 3.0 % Hybrid and redeemable preferred securities 4 Discounted cash flow Liquidity/duration adjustment (1) 1.4 % - 1.4 % Equity securities 21 Discounted cash flow Liquidity/duration adjustment (1) 4.5 % - 5.2 % Other assets: GLB direct and ceded embedded derivatives 510 Discounted cash flow Long-term lapse rate (2) 1 % - 30 % Utilization of guaranteed withdrawals (3) 85 % - 100 % Claims utilization factor (4) 60 % - 100 % Premiums utilization factor (4) 80 % - 115 % NPR (5) 0.01 % - 0.27 % Mortality rate (6) (8) Volatility (7) 1 % - 28 % Indexed annuity ceded embedded derivatives 927 Discounted cash flow Lapse rate (2) 1 % - 9 % Mortality rate (6) (8) Liabilities Future contract benefits – indexed annuity and IUL contracts embedded derivatives $ ( 2,585 ) Discounted cash flow Lapse rate (2) 1 % - 9 % Mortality rate (6) (8) Other liabilities – GLB ceded embedded derivatives ( 510 ) Discounted cash flow Long-term lapse rate (2) 1 % - 30 % Utilization of guaranteed withdrawals (3) 85 % - 100 % Claims utilization factor (4) 60 % - 100 % Premiums utilization factor (4) 80 % - 115 % NPR (5) 0.01 % - 0.27 % Mortality rate (6) (8) Volatility (7) 1 % - 28 % (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, an increase in the lapse rate or mortality rate inputs would result in a decrease in the fair value measurement. GLB embedded derivatives – Assuming our GLB direct embedded derivatives are in a liability position: an increase in our lapse rate, NPR or mortality rate inputs would result in a decrease in the fair value measurement; and an increase in the utilization of 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” above . |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2019 | |
Segment Information [Abstract] | |
Segment Information | 21. Segment Information We provide products and services and report results through our Annuities, Retirement Plan Services, Life Insurance and Group Protection segments. As discussed in Note 3, we completed the acquisition of Liberty Life during the second quarter of 2018. Related results are included within the Group Protection segment. We also have Other Operations, which includes the financial data for operations that are not directly related to the business segments. Our reporting segments reflect the manner by which our chief operating decision makers view and manage the business. The following is a brief description of these segments and Other Operations. The Annuities segment provides tax-deferred investment growth and lifetime income opportunities for its clients by offering fixed (including indexed) and variable annuities. The Retirement Plan Services segment provides employer-sponsored defined benefit and individual retirement accounts, as well as individual and group variable annuities, group fixed annuities and mutual-fund based programs in the retirement plan marketplace. The Life Insurance segment focuses in the creation and protection of wealth through life insurance products, including term insurance, a linked-benefit product (which is a UL policy linked with riders that provide for long-term care costs), IUL and both single and survivorship versions of UL and VUL, including corporate-owned UL and VUL insurance and bank-owned UL and VUL insurance products. The Group Protection segment offers group non-medical insurance products, including short and long-term disability, absence management services, term life, dental, vision and accident and critical illness benefits and services to the employer marketplace through various forms of employee-paid and employer-paid plans. Other Operations includes investments related to our excess capital; benefit plan net liability; the unamortized deferred gain on indemnity reinsurance related to the sale of reinsurance; the results of certain disability income business; our run-off institutional pension business, the majority of which was sold on a group annuity basis; debt costs; strategic digitization expense; and other corporate investments. 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 (“gain (loss) on the mark-to-market on certain instruments”); GLB rider fees ceded to LNBAR; The net valuation premium of the GLB attributed rider fees; Changes in the fair value of the embedded derivative liabilities related to index options we may purchase or sell in the future to hedge contract holder index allocations applicable to future reset periods for our indexed annuity products accounted for at fair value (“indexed annuity forward-starting option”); 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 reinsurance. We use our prevailing corporate federal income tax rates 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 segment measures of performance to the GAAP measures presented in our consolidated results of operations. Operating revenues and income (loss) from operations do not replace revenues and net income as the GAAP measures of our consolidated results of operations. The tables below reconcile our segment measures of performance to the GAAP measures presented in our Consolidated Statements of Comprehensive Income (Loss) (in millions): For the Years Ended December 31, 2019 2018 2017 Revenues Operating revenues: Annuities $ 4,240 $ 4,025 $ 4,034 Retirement Plan Services 1,186 1,164 1,152 Life Insurance 6,999 6,489 6,128 Group Protection 4,587 3,756 2,200 Other Operations 199 209 263 Excluded realized gain (loss), pre-tax ( 1,019 ) ( 285 ) ( 630 ) Amortization of deferred gain arising from reserve changes on business sold through reinsurance, pre-tax - - 1 Total revenues $ 16,192 $ 15,358 $ 13,148 For the Years Ended December 31, 2019 2018 2017 Net Income (Loss) Income (loss) from operations: Annuities $ 987 $ 1,122 $ 1,072 Retirement Plan Services 162 160 142 Life Insurance 267 530 522 Group Protection 237 186 103 Other Operations ( 148 ) ( 130 ) ( 30 ) Excluded realized gain (loss), after-tax ( 804 ) ( 225 ) ( 409 ) Gain (loss) on early extinguishment of debt, after-tax - - ( 3 ) Net impact from the Tax Cuts and Jobs Act 16 ( 3 ) 1,526 Impairment of intangibles, after-tax - - ( 905 ) Acquisition and integration costs related to mergers and acquisitions, after-tax ( 103 ) ( 67 ) - Net income (loss) $ 614 $ 1,573 $ 2,018 Other segment information (in millions) was as follows: For the Years Ended December 31, 2019 2018 2017 Net Investment Income Annuities $ 1,070 $ 947 $ 982 Retirement Plan Services 917 892 893 Life Insurance 2,494 2,546 2,496 Group Protection 306 259 167 Other Operations 175 200 222 Total net investment income $ 4,962 $ 4,844 $ 4,760 For the Years Ended December 31, 2019 2018 2017 Amortization of DAC and VOBA, Net of Interest Annuities $ 427 $ 347 $ 402 Retirement Plan Services 25 27 26 Life Insurance 757 701 455 Group Protection 111 92 79 Total amortization of DAC and VOBA, net of interest $ 1,320 $ 1,167 $ 962 For the Years Ended December 31, 2019 2018 2017 Federal Income Tax Expense (Benefit) Annuities $ 148 $ 187 $ 198 Retirement Plan Services 21 28 50 Life Insurance 50 116 236 Group Protection 63 50 55 Other Operations ( 61 ) ( 48 ) ( 78 ) Excluded realized gain (loss) ( 215 ) ( 61 ) ( 220 ) Gain (loss) on early extinguishment of debt - - ( 2 ) Net impact from the Tax Cuts and Jobs Act ( 16 ) 3 ( 1,526 ) Acquisition and integration costs related to mergers and acquisitions ( 27 ) ( 18 ) - Total federal income tax expense (benefit) $ ( 37 ) $ 257 $ ( 1,287 ) As of December 31, 2019 2018 Assets Annuities $ 166,639 $ 145,462 Retirement Plan Services 40,190 35,742 Life Insurance 93,327 82,153 Group Protection 9,468 8,495 Other Operations 26,392 27,293 Total assets $ 336,016 $ 299,145 |
Supplemental Disclosures of Cas
Supplemental Disclosures of Cash Flow Data | 12 Months Ended |
Dec. 31, 2019 | |
Supplemental Disclosures of Cash Flow Data [Abstract] | |
Supplemental Disclosures of Cash Flow Data | 22 . Supplemental Disclosures of Cash Flow Data The following summarizes our supplemental cash flow data (in millions): For the Years Ended December 31, 2019 2018 2017 Interest paid $ 152 $ 154 $ 123 Income taxes paid (received) 245 192 215 Significant non-cash investing and financing transactions: Reduction of other assets in connection with the expiration of an affiliate repurchase agreement ( 150 ) - - Acquisition of note receivable from affiliate 392 31 74 Investments received in financing transactions - 263 - Exchange of surplus note for promissory note with affiliate: Carrying value of asset 40 58 109 Carrying value of liability ( 40 ) ( 58 ) ( 109 ) Net asset (liability) from exchange $ - $ - $ - |
Quarterly Results of Operations
Quarterly Results of Operations | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Results of Operations [Abstract] | |
Quarterly Results of Operations | 23. Quarterly Results of Operations (Unaudited) The unaudited quarterly results of operations (in millions) were as follows: For the Three Months Ended March 31, June 30, September 30, December 31, 2019 Total revenues $ 3,764 $ 3,928 $ 4,227 $ 4,273 Total expenses 3,646 3,686 4,526 3,757 Net income (loss) 133 222 ( 201 ) 460 2018 Total revenues $ 3,404 $ 3,852 $ 4,039 $ 4,063 Total expenses 2,921 3,357 3,619 3,631 Net income (loss) 407 420 378 368 |
Transactions With Affiliates
Transactions With Affiliates | 12 Months Ended |
Dec. 31, 2019 | |
Transactions With Affiliates [Abstract] | |
Transactions With Affiliates | 24. Transactions with Affiliates The following summarizes transactions with affiliates (in millions) and the associated line item on our Consolidated Balance Sheets: As of December 31, 2019 2018 Assets with affiliates: Inter-company notes $ 1,557 $ 1,512 Fixed maturity AFS securities Ceded reinsurance contracts ( 115 ) ( 188 ) Deferred acquisition costs and value of business acquired Accrued inter-company interest receivable 6 11 Accrued investment income Ceded reinsurance contracts 2,473 2,574 Reinsurance recoverables Ceded reinsurance contracts - 191 Reinsurance related embedded derivatives Ceded reinsurance contracts 228 235 Other assets Cash management agreement 1,227 112 Other assets Service agreement receivable 6 5 Other assets Liabilities with affiliates: Assumed reinsurance contracts 26 29 Future contract benefits Assumed reinsurance contracts 390 400 Other contract holder funds Ceded reinsurance contracts ( 38 ) ( 46 ) Other contract holder funds Inter-company short-term debt 609 288 Short-term debt Inter-company long-term debt 2,414 2,401 Long-term debt Ceded reinsurance contracts 46 - Reinsurance related embedded derivatives Ceded reinsurance contracts 3,757 3,120 Funds withheld reinsurance liabilities Ceded reinsurance contracts 497 325 Other liabilities Accrued inter-company interest payable 5 13 Other liabilities Service agreement payable 22 56 Other liabilities The following summarizes transactions with affiliates (in millions) and the associated line item on our Consolidated Statements of Comprehensive Income (Loss): For the Years Ended December 31, 2019 2018 2017 Revenues with affiliates: Premiums received on assumed (paid on ceded) $ reinsurance contracts ( 407 ) $ ( 404 ) $ ( 393 ) Insurance premiums Fees for management of general account ( 133 ) ( 106 ) ( 100 ) Net investment income Net investment income on ceded funds withheld treaties ( 139 ) ( 123 ) ( 84 ) Net investment income Net investment income on inter-company notes 53 49 42 Net investment income Realized gains (losses) on ceded reinsurance contracts: GLB reserves embedded derivatives ( 305 ) 709 ( 1,055 ) Realized gain (loss) Other gains (losses) ( 301 ) 237 ( 150 ) Realized gain (loss) Reinsurance related settlements 472 ( 1,189 ) 951 Realized gain (loss) Amortization of deferred gain (loss) on reinsurance contracts ( 4 ) ( 5 ) ( 5 ) Amortization of deferred gain on business sold through reinsurance Benefits and expenses with affiliates: Interest credited on assumed reinsurance contracts 60 57 67 Interest credited Reinsurance (recoveries) benefits on ceded reinsurance ( 254 ) ( 610 ) ( 299 ) Benefits Ceded reinsurance contracts ( 19 ) ( 8 ) ( 12 ) Commissions and other expenses Service agreement payments 15 3 3 Commissions and other expenses Interest expense on inter-company debt 130 126 120 Interest and debt expense Inter-Company Notes LNC issues inter-company notes to us for a predetermined face value to be repaid by LNC at a predetermined maturity with a specified interest rate. Cash Management Agreement In order to manage our capital more efficiently, we participate in an inter-company cash management program where LNC can lend to or borrow from us to meet short-term borrowing needs. The cash management program is essentially a series of demand loans, which are permitted under applicable insurance laws, among LNC and its affiliates that reduces overall borrowing costs by allowing LNC and its subsidiaries to access internal resources instead of incurring third-party transaction costs. The borrowing and lending limit is currently 3 % of our admitted assets as of December 31, 2019. Service Agreement In accordance with service agreements with LNC and other subsidiaries of LNC for personnel and facilities usage, general management services and investment management services, we receive services from and provide services to affiliated companies and receive an allocation of corporate overhead. Corporate overhead expenses are allocated based on specific methodologies for each function. The majority of the expenses are allocated based on the following methodologies: headcount, capital, investments by product, assets under management, weighted policies in force and sales. Ceded Reinsurance Contracts As discussed in Note 9, we cede insurance contracts to LNBAR. We cede certain guaranteed benefit risks (including certain GDB and GWB benefits) to LNBAR. As discussed in Note 6, we cede the GLB reserves embedded derivatives and the related hedge results to LNBAR. Substantially all reinsurance ceded to affiliated companies is with unauthorized companies. To take reserve credit for such reinsurance, we hold assets from the reinsurer, including funds held under reinsurance treaties, and are the beneficiary of LOCs aggregating to $ 115 million and $ 1.2 billion as of December 31, 2019 and 2018, respectively. The LOCs are obtained by the affiliate reinsurer and issued by banks in order for the Company to recognize the reserve credit. |
SCHEDULE I - CONSOLIDATED SUMMA
SCHEDULE I - CONSOLIDATED SUMMARY OF INVESTMENTS | 12 Months Ended |
Dec. 31, 2019 | |
Consolidated Summary of Investments [Abstract] | |
Consolidated Summary of Investments | THE LINCOLN NATIONAL LIFE INSURANCE COMPANY SCHEDULE I – CONSOLIDATED SUMMARY OF INVESTMENTS – OTHER THAN INVESTMENTS IN RELATED PARTIES (in millions) Column A Column B Column C Column D As of December 31, 2019 Fair Carrying Type of Investment Cost Value Value Fixed Maturity Available-For-Sale Securities (1) Bonds: U.S. government bonds $ 355 $ 403 $ 403 Foreign government bonds 326 388 388 State and municipal bonds 4,605 5,685 5,685 Public utilities 13,066 14,842 14,842 All other corporate bonds 65,809 72,937 72,937 Mortgage-backed and asset-backed securities 8,661 8,974 8,974 Hybrid and redeemable preferred securities 485 544 544 Total fixed maturity available-for-sale securities 93,307 103,773 103,773 Equity Securities Common stocks: Public utilities 5 4 4 Banks, trusts and insurance companies 35 35 35 Industrial, miscellaneous and all other 35 26 26 Non-redeemable preferred securities 48 38 38 Total equity securities 123 103 103 Trading securities 4,268 4,602 4,602 Mortgage loans on real estate 16,244 16,774 16,244 Real estate 11 N/A 11 Policy loans 2,460 N/A 2,460 Derivative investments (2) 755 1,911 1,911 Other investments 2,554 2,554 2,554 Total investments $ 119,722 $ 131,658 (1) Investments deemed to have declines in value that are other-than-temporary are written down or reserved for to reduce the carrying value to their estimated realizable value. (2) Derivative investment assets were offset by $ 238 million in derivative liabilities reflected in other liabilities on our Consolidated Balance Sheets. |
SCHEDULE III - CONSOLIDATED SUP
SCHEDULE III - CONSOLIDATED SUPPLEMENTARY INSURANCE INFORMATION | 12 Months Ended |
Dec. 31, 2019 | |
Consolidated Supplementary Insurance Information [Abstract] | |
Supplementary Insurance Information | THE LINCOLN NATIONAL LIFE INSURANCE COMPANY SCHEDULE III – CONDENSED SUPPLEMENTARY INSURANCE INFORMATION (in millions) Column A Column B Column C Column D Column E Column F Other Future Contract DAC and Contract Unearned Holder Insurance Segment VOBA Benefits Premiums (1) Funds Premiums (2) As of or For the Year Ended December 31, 2019 Annuities $ 3,973 $ 3,861 $ - $ 29,518 $ 502 Retirement Plan Services 181 9 - 20,553 - Life Insurance 3,382 15,714 - 39,320 661 Group Protection 209 5,601 - 194 4,113 Other Operations - 10,532 - 7,837 1 Total $ 7,745 $ 35,717 $ - $ 97,422 $ 5,277 As of or For the Year Ended December 31, 2018 Annuities $ 3,915 $ 3,508 $ - $ 23,525 $ 390 Retirement Plan Services 247 8 - 19,761 - Life Insurance 5,936 12,553 - 40,305 589 Group Protection 210 5,396 - 197 3,383 Other Operations - 12,419 - 6,785 - Total $ 10,308 $ 33,884 $ - $ 90,573 $ 4,362 As of or For the Year Ended December 31, 2017 Annuities $ 3,806 $ 1,942 $ - $ 21,739 $ 475 Retirement Plan Services 197 4 - 18,719 - Life Insurance 4,225 12,023 - 38,705 546 Group Protection 180 2,262 - 161 1,998 Other Operations - 5,832 - 157 ( 1 ) Total $ 8,408 $ 22,063 $ - $ 79,481 $ 3,018 (1) Unearned premiums are included in Column C, future contract benefits. (2) Includes amounts ceded to LNBAR. THE LINCOLN NATIONAL LIFE INSURANCE COMPANY SCHEDULE III – CONDENSED SUPPLEMENTARY INSURANCE INFORMATION (Continued) (in millions) Column A Column G Column H Column I Column J Column K Benefits Amortization Net and of DAC Other Investment Interest and Operating Premiums Segment Income Credited VOBA Expenses Written As of or For the Year Ended December 31, 2019 Annuities $ 1,070 $ 1,327 $ 427 $ 1,351 $ - Retirement Plan Services 917 587 25 392 - Life Insurance 2,494 5,231 757 694 - Group Protection 306 3,041 111 1,134 - Other Operations 175 153 - 385 - Total $ 4,962 $ 10,339 $ 1,320 $ 3,956 $ - As of or For the Year Ended December 31, 2018 Annuities $ 947 $ 1,053 $ 347 $ 1,316 $ - Retirement Plan Services 892 556 27 393 - Life Insurance 2,546 4,509 701 633 - Group Protection 259 2,460 92 968 - Other Operations 200 155 - 319 - Total $ 4,844 $ 8,733 $ 1,167 $ 3,629 $ - As of or For the Year Ended December 31, 2017 Annuities $ 982 $ 1,077 $ 402 $ 1,285 $ - Retirement Plan Services 893 539 26 395 - Life Insurance 2,496 4,242 455 678 - Group Protection 167 1,352 79 611 - Other Operations 222 166 - 205 - Total $ 4,760 $ 7,376 $ 962 $ 3,174 $ - |
SCHEDULE IV - CONSOLIDATED REIN
SCHEDULE IV - CONSOLIDATED REINSURANCE | 12 Months Ended |
Dec. 31, 2019 | |
Consolidated Reinsurance [Abstract] | |
Reinsurance Supplemental Schedule | Column A Column B Column C Column D Column E Column F Ceded Assumed Percentage to from of Amount Gross Other Other Net Assumed Description Amount Companies Companies Amount to Net As of or For the Year Ended December 31, 2019 Individual life insurance in force (1) $ 1,477,684 $ 591,829 $ 11,009 $ 896,864 1.2 % Premiums: Life insurance and annuities (2) 10,572 1,877 88 8,783 1.0 % Accident and health insurance 2,774 43 9 2,740 0.3 % Total premiums $ 13,347 $ 1,920 $ 97 $ 11,524 As of or For the Year Ended December 31, 2018 Individual life insurance in force (1) $ 1,366,563 $ 627,868 $ 12,295 $ 750,990 1.6 % Premiums: Life insurance and annuities (2) 9,583 1,841 88 7,830 1.1 % Accident and health insurance 2,299 42 8 2,265 0.4 % Total premiums $ 11,882 $ 1,883 $ 96 $ 10,095 As of or For the Year Ended December 31, 2017 Individual life insurance in force (1) $ 1,014,841 $ 240,034 $ 13,476 $ 788,283 1.7 % Premiums: Life insurance and annuities (2) 8,783 1,786 90 7,087 1.3 % Accident and health insurance 1,320 31 11 1,300 0.8 % Total premiums $ 10,103 $ 1,817 $ 101 $ 8,387 (1) Includes Group Protection segment and Other Operations in-force amounts. (2) Includes insurance fees on universal life and other interest-sensitive products. |
Nature of Operations, Basis o_2
Nature of Operations, Basis of Presentation and Summary of Significant Accounting Policies (Policy) | 12 Months Ended |
Dec. 31, 2019 | |
Nature of Operations, Basis of Presentation and Summary of Significant Accounting Policies [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 two insurance company subsidiaries, Lincoln Life & Annuity Company of New York (“LLANY”) and Lincoln Life Assurance Company of Boston (“LLACB”). We also own several non-insurance companies, including Lincoln Financial Distributors, our wholesale distributor, and Lincoln Financial Advisors Corporation, part of LNC’s retail distributor, Lincoln Financial Network. LNL’s principal businesses consist of underwriting annuities, deposit-type contracts and life insurance through multiple distribution channels. LNL is licensed and sells its products throughout the U.S. and several U.S. territories. See Note 21 for additional information. |
Basis Of Presentation | Basis of Presentation The accompanying consolidated financial statements are prepared in accordance with United States of America generally accepted accounting principles (“GAAP”). Certain GAAP policies, which significantly affect the determination of financial condition, results of operations and cash flows, are summarized below. |
Principles Of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the accounts of LNL and all other entities in which we have a controlling financial interest and any variable interest entities (“VIEs”) in which we are the primary beneficiary. As discussed in Note 3, on May 1, 2018, LNC and LNL completed the acquisition of Liberty Life Assurance Company of Boston (“Liberty Life”), which effective September 1, 2019, was renamed Lincoln Life Assurance Company of Boston. We use the equity method of accounting to recognize all of our investments in limited liability partnerships. All material inter-company accounts and transactions have been eliminated in consolidation. Our involvement with VIEs is primarily to invest in assets that allow us to gain exposure to a broadly diversified portfolio of asset classes. A VIE is an entity that does not have sufficient equity to finance its own activities without additional financial support or where investors lack certain characteristics of a controlling financial interest. We assess our contractual, ownership or other interests in a VIE to determine if our interest participates in the variability the VIE was designed to absorb and pass onto variable interest holders. We perform an ongoing qualitative assessment of our variable interests in VIEs to determine whether we have a controlling financial interest and would therefore be considered the primary beneficiary of the VIE. If we determine we are the primary beneficiary of a VIE, we consolidate the assets and liabilities of the VIE in our consolidated financial statements. |
Accounting Estimates and Assumptions | Accounting Estimates and Assumptions The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions affecting the reported amounts of assets and liabilities and the disclosures of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses for the reporting period. Those estimates are inherently subject to change and actual results could differ from those estimates. Included among the material (or potentially material) reported amounts and disclosures that require extensive use of estimates are: fair value of certain investments and derivatives, other-than-temporary impairment (“OTTI”) and asset valuation allowances, deferred acquisition costs (“DAC”) , value of business acquired (“VOBA”) , deferred sales inducements (“DSI”), goodwill, future contract benefits, other contract holder funds including deferred front-end loads (“DFEL”) , pension plans, stock-based incentive compensation, income taxes and the potential effects of resolving litigated matters. |
Business Combinations | Business Combinations We use the acquisition method of accounting for all business combination transactions, and accordingly, recognize the fair values of assets acquired, liabilities assumed and any noncontrolling interests in our consolidated financial statements. The allocation of fair values may be subject to adjustment after the initial allocation for up to a one-year period as more information becomes available relative to the fair values as of the acquisition date. The consolidated financial statements include the results of operations of any acquired company since the acquisition date. |
Fair Value Measurement | Fair Value Measurement Our measurement of fair value is based on assumptions used by market participants in pricing the asset or liability, which may include inherent risk, restrictions on the sale or use of an asset or non-performance risk (“NPR”), which would include our own credit risk. Our estimate of an exchange price is the price in an orderly transaction between market participants to sell the asset or transfer the liability (“exit price”) in the principal market, or the most advantageous market in the absence of a principal market, for that asset or liability, as opposed to the price that would be paid to acquire the asset or receive a liability (“entry price”). Pursuant to the Fair Value Measurements and Disclosures Topic of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification TM (“ASC”), we categorize our financial instruments carried at fair value into a three-level fair value hierarchy, based on the priority of inputs to the respective valuation technique. The three-level hierarchy for fair value measurement is defined as follows: Level 1 – inputs to the valuation methodology are quoted prices available in active markets for identical investments as of the reporting date, except for large holdings subject to “blockage discounts” that are excluded; Level 2 – inputs to the valuation methodology are other than quoted prices in active markets, which are either directly or indirectly observable as of the reporting date, and fair value can be determined through the use of models or other valuation methodologies; and Level 3 – inputs to the valuation methodology are unobservable inputs in situations where there is little or no market activity for the asset or liability, and we make estimates and assumptions related to the pricing of the asset or liability, including assumptions regarding risk. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the investment. When a determination is made to classify an asset or liability within Level 3 of the fair value hierarchy, the determination is based upon the significance of the unobservable inputs to the overall fair value measurement. Because certain securities trade in less liquid or illiquid markets with limited or no pricing information, the determination of fair value for these securities is inherently more difficult. However, Level 3 fair value investments may include, in addition to the unobservable or Level 3 inputs, observable components, which are components that are actively quoted or can be validated to market-based sources. |
Available-For-Sale Securities - Fair Value Methodologies and Associated inputs | Fixed Maturity Available-For-Sale Securities – Fair Valuation Methodologies and Associated Inputs Securities classified as available-for-sale (“AFS”) consist of fixed maturity securities and are stated at fair value with unrealized gains and losses included within accumulated other comprehensive income (loss) (“AOCI”), net of associated DAC, VOBA, DSI , future contract benefits, other contract holder funds and deferred income taxes. We measure the fair value of our securities classified as fixed maturity AFS based on assumptions used by market participants in pricing the security. The most appropriate valuation methodology is selected based on the specific characteristics of the fixed maturity security, and we consistently apply the valuation methodology to measure the security’s fair value. Our fair value measurement is based on a market approach that utilizes prices and other relevant information generated by market transactions involving identical or comparable securities. Sources of inputs to the market approach primarily include third-party pricing services, independent broker quotations or pricing matrices. We do not adjust prices received from third parties; however, we do analyze the third-party pricing services’ valuation methodologies and related inputs and perform additional evaluation to determine the appropriate level within the fair value hierarchy. The observable and unobservable inputs to our valuation methodologies are based on a set of standard inputs that we generally use to evaluate all of our fixed maturity AFS securities. Observable inputs include benchmark yields, reported trades, broker-dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data. In addition, market indicators, industry and economic events are monitored, and further market data is acquired if certain triggers are met. For certain security types, additional inputs may be used, or some of the inputs described above may not be applicable. For private placement securities, we use pricing matrices that utilize observable pricing inputs of similar public securities and Treasury yields as inputs to the fair value measurement. Depending on the type of security or the daily market activity, standard inputs may be prioritized differently or may not be available for all fixed maturity AFS securities on any given day. For broker-quoted only securities, non-binding quotes from market makers or broker-dealers are obtained from sources recognized as market participants. For securities trading in less liquid or illiquid markets with limited or no pricing information, we use unobservable inputs to measure fair value. The following summarizes our fair valuation methodologies and associated inputs, which are particular to the specified security type and are in addition to the defined standard inputs to our valuation methodologies for all of our fixed maturity AFS securities discussed above: Corporate bonds and U.S. government bonds – We also use Trade Reporting and Compliance Engine TM reported tables for our corporate bonds and vendor trading platform data for our U.S. government bonds. Mortgage- and asset-backed securities (“ABS”) – We also utilize additional inputs, which include new issues data, monthly payment information and monthly collateral performance, including prepayments, severity, delinquencies, step-down features and over collateralization features for each of our mortgage-backed securities (“MBS”), which include collateralized mortgage obligations and mortgage pass through securities backed by residential mortgages (“RMBS”), commercial mortgage-backed securities (“CMBS”), collateralized loan obligations (“CLOs”) and collateralized debt obligations (“CDOs”). State and municipal bonds – We also use additional inputs that include information from the Municipal Securities Rule Making Board, as well as material event notices, new issue data, issuer financial statements and Municipal Market Data benchmark yields for our state and municipal bonds. Hybrid and redeemable preferred securities – We also utilize additional inputs of exchange prices (underlying and common stock of the same issuer) for our hybrid and redeemable preferred securities. In order to validate the pricing information and broker-dealer quotes, we employ, where possible, procedures that include comparisons with similar observable positions, comparisons with subsequent sales and observations of general market movements for those security classes. We have policies and procedures in place to review the process that is utilized by our third-party pricing service and the output that is provided to us by the pricing service. On a periodic basis, we test the pricing for a sample of securities to evaluate the inputs and assumptions used by the pricing service, and we perform a comparison of the pricing service output to an alternative pricing source. We also evaluate prices provided by our primary pricing service to ensure that they are not stale or unreasonable by reviewing the prices for unusual changes from period to period based on certain parameters or for lack of change from one period to the next. |
AFS Securities - Evaluation for Recovery of Amortized Cost | Fixed Maturity AFS Securities – Evaluation for Recovery of Amortized Cost We regularly review our fixed maturity AFS securities (also referred to as “debt securities”) for declines in fair value that we determine to be other-than-temporary. For our debt securities, we generally consider the following to determine whether our debt securities with unrealized losses are other-than-temporarily impaired: The estimated range and average period until recovery; The estimated range and average holding period to maturity; Remaining payment terms of the security; Current delinquencies and nonperforming assets of underlying collateral; Expected future default rates; Collateral value by vintage, geographic region, industry concentration or property type; Subordination levels or other credit enhancements as of the balance sheet date as compared to origination; and Contractual and regulatory cash obligations. For a debt security, if we intend to sell a security, or it is more likely than not we will be required to sell a debt security before recovery of its amortized cost basis and the fair value of the debt security is below amortized cost, we conclude that an OTTI has occurred and the amortized cost is written down to current fair value, with a corresponding charge to realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). If we do not intend to sell a debt security, or it is not more likely than not we will be required to sell a debt security before recovery of its amortized cost basis but the present value of the cash flows expected to be collected is less than the amortized cost of the debt security (referred to as the credit loss), we conclude that an OTTI has occurred and the amortized cost is written down to the estimated recovery value with a corresponding charge to realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss), as this amount is deemed the credit portion of the OTTI. The remainder of the decline to fair value is recorded in other comprehensive income (“OCI”) to unrealized OTTI on fixed maturity AFS securities on our Consolidated Statements of Stockholder’s Equity, as this amount is considered a noncredit (i.e., recoverable) impairment. When assessing our intent to sell a debt security, or if it is more likely than not we will be required to sell a debt security before recovery of its cost basis, we evaluate facts and circumstances such as, but not limited to, decisions to reposition our security portfolio, sales of securities to meet cash flow needs and sales of securities to capitalize on favorable pricing. Management considers the following as part of the evaluation: The current economic environment and market conditions; Our business strategy and current business plans; The nature and type of security, including expected maturities and exposure to general credit, liquidity, market and interest rate risk; Our analysis of data from financial models and other internal and industry sources to evaluate the current effectiveness of our hedging and overall risk management strategies; The current and expected timing of contractual maturities of our assets and liabilities, expectations of prepayments on investments and expectations for surrenders and withdrawals of life insurance policies and annuity contracts; The capital risk limits approved by management; and Our current financial condition and liquidity demands. In order to determine the amount of the credit loss for a debt security, we calculate the recovery value by performing a discounted cash flow analysis based on the current cash flows and future cash flows we expect to recover. The discount rate is the effective interest rate implicit in the underlying debt security. The effective interest rate is the original yield, or the coupon if the debt security was previously impaired. See the discussion below for additional information on the methodology and significant inputs, by security type, that we use to determine the amount of a credit loss. To determine the recovery period of a debt security, we consider the facts and circumstances surrounding the underlying issuer including, but not limited to, the following: Historical and implied volatility of the security; Length of time and extent to which the fair value has been less than amortized cost; Adverse conditions specifically related to the security or to specific conditions in an industry or geographic area; Failure, if any, of the issuer of the security to make scheduled payments; and Recoveries or additional declines in fair value subsequent to the balance sheet date. In periods subsequent to the recognition of an OTTI, the fixed maturity AFS security is accounted for as if it had been purchased on the measurement date of the OTTI. Therefore, for the fixed maturity AFS security, the original discount or reduced premium is reflected in net investment income over the contractual term of the investment in a manner that produces a constant effective yield. To determine recovery value of a corporate bond, CLO or CDO, we perform additional analysis related to the underlying issuer including, but not limited to, the following: Fundamentals of the issuer to determine what we would recover if they were to file bankruptcy versus the price at which the market is trading; Fundamentals of the industry in which the issuer operates; Earnings multiples for the given industry or sector of an industry that the underlying issuer operates within, divided by the outstanding debt to determine an expected recovery value of the security in the case of a liquidation; Expected cash flows of the issuer (e.g., whether the issuer has cash flows in excess of what is required to fund its operations); Expectations regarding defaults and recovery rates; Changes to the rating of the security by a rating agency; and Additional market information (e.g., if there has been a replacement of the corporate debt security). Each quarter, we review the cash flows for the MBS to determine whether or not they are sufficient to provide for the recovery of our amortized cost. We revise our cash flow projections only for those securities that are at most risk for impairment based on current credit enhancement and trends in the underlying collateral performance. To determine recovery value of a MBS, we perform additional analysis related to the underlying issuer including, but not limited to, the following: Discounted cash flow analysis based on the current cash flows and future cash flows we expect to recover; Level of creditworthiness of the home equity loans or residential mortgages that back an RMBS or commercial mortgages that back a CMBS; Susceptibility to fair value fluctuations for changes in the interest rate environment; Susceptibility to reinvestment risks, in cases where market yields are lower than the securities’ book yield earned; Susceptibility to reinvestment risks, in cases where market yields are higher than the book yields earned on a security; Expectations of sale of such a security where market yields are higher than the book yields earned on a security; and Susceptibility to variability of prepayments. When evaluating MBS and mortgage-related ABS, we consider a number of pool-specific factors as well as market level factors when determining whether or not the impairment on the security is temporary or other-than-temporary. The most important factor is the performance of the underlying collateral in the security and the trends of that performance in the prior periods. We use this information about the collateral to forecast the timing and rate of mortgage loan defaults, including making projections for loans that are already delinquent and for those loans that are currently performing but may become delinquent in the future. Other factors used in this analysis include the credit characteristics of borrowers, geographic distribution of underlying loans and timing of liquidations by state. Once default rates and timing assumptions are determined, we then make assumptions regarding the severity of a default if it were to occur. Factors that impact the severity assumption include expectations for future home price appreciation or depreciation, loan size, first lien versus second lien, existence of loan level private mortgage insurance, type of occupancy and geographic distribution of loans. Once default and severity assumptions are determined for the security in question, cash flows for the underlying collateral are projected including expected defaults and prepayments. These cash flows on the collateral are then translated to cash flows on our tranche based on the cash flow waterfall of the entire capital security structure. If this analysis indicates the entire principal on a particular security will not be returned, the security is reviewed for OTTI by comparing the expected cash flows to amortized cost. To the extent that the security has already been impaired or was purchased at a discount, such that the amortized cost of the security is less than or equal to the present value of cash flows expected to be collected, no impairment is required. Otherwise, if the amortized cost of the security is greater than the present value of the cash flows expected to be collected, and the security was not purchased at a discount greater than the expected principal loss, then impairment is recognized. We further monitor the cash flows of all of our fixed maturity AFS securities backed by mortgages on an ongoing basis. We also perform detailed analysis on all of our subprime, Alt-A, non-agency residential MBS and on a significant percentage of our fixed maturity AFS securities backed by pools of commercial mortgages. The detailed analysis includes revising projected cash flows by updating the cash flows for actual cash received and applying assumptions with respect to expected defaults, foreclosures and recoveries in the future. These revised projected cash flows are then compared to the amount of credit enhancement (subordination) in the structure to determine whether the amortized cost of the security is recoverable. If it is not recoverable, we record an impairment of the security. |
Trading Securities | Trading Securities Trading securities consist of fixed maturity securities in designated portfolios, some of which support modified coinsurance (“Modco”) and coinsurance with funds withheld (“CFW”) reinsurance agreements. Investment results for the portfolios that support Modco and CFW reinsurance agreements, including gains and losses from sales, are passed directly to the reinsurers pursuant to contractual terms of the reinsurance agreements. Trading securities are carried at fair value, and changes in fair value and changes in the fair value of embedded derivative liabilities associated with the underlying reinsurance agreements are recorded in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss) as they occur. |
Equity Securities | Equity Securities Equity securities are carried at fair value, and changes in fair value are recorded in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss) as they occur. Equity securities consist primarily of common stock of publicly-traded companies, privately placed securities and mutual fund shares. We measure the fair value of our equity securities based on assumptions used by market participants in pricing the security. The most appropriate valuation methodology is selected based on the specific characteristics of the equity security. Fair values of publicly-traded equity securities are determined using quoted prices in active markets for identical or comparable securities. When quoted prices are not available, we use valuation methodologies most appropriate for the specific asset. Fair values for private placement securities are determined using discounted cash flow, earnings multiple and other valuation models. The fair values of mutual fund shares that transact regularly are based on transaction prices of identical fund shares. |
Alternative Investments | Alternative Investments Alternative investments, which consist primarily of investments in limited partnerships (“LPs”), are included in other investments on our Consolidated Balance Sheets. We account for our investments in LPs using the equity method to determine the carrying value. Recognition of alternative investment income is delayed due to the availability of the related financial statements, which are generally obtained from the partnerships’ general partners. As a result, our private equity investments are generally on a three-month delay and our hedge funds are on a one-month delay. In addition, the impact of audit adjustments related to completion of calendar-year financial statement audits of the investees are typically received during the second quarter of each calendar year. Accordingly, our investment income from alternative investments for any calendar-year period may not include the complete impact of the change in the underlying net assets for the partnership for that calendar-year period. |
Payables for Collateral on Investments | Payables for Collateral on Investments When we enter into collateralized financing transactions on our investments, a liability is recorded equal to the cash or non-cash collateral received. This liability is included within payables for collateral on investments on our Consolidated Balance Sheets. Income and expenses associated with these transactions are recorded as investment income and investment expenses within net investment income on our Consolidated Statements of Comprehensive Income (Loss). Changes in payables for collateral on investments are reflected within cash flows from investing activities on our Consolidated Statements of Cash Flows. |
Mortgage Loans on Real Estate | Mortgage Loans on Real Estate Mortgage loans on real estate consist of commercial and residential mortgage loans and are carried at unpaid principal balances adjusted for amortization of premiums and accretion of discounts and are net of valuation allowances. Interest income is accrued on the principal balance of the loan based on the loan’s contractual interest rate. Premiums and discounts are amortized using the effective yield method over the life of the loan. Interest income and amortization of premiums and discounts are reported in net investment income on our Consolidated Statements of Comprehensive Income (Loss) along with mortgage loan fees, which are recorded as they are incurred. Our policy for commercial mortgage loans is to report loans that are 60 or more days past due, which equates to two or more payments missed, as delinquent. Our policy for residential mortgage loans is to report loans that are 90 or more days past due, which equates to three or more payments missed, as delinquent. We do not accrue interest on loans 90 days past due, and any interest received on these loans is either applied to the principal or recorded in net investment income on our Consolidated Statements of Comprehensive Income (Loss) when received, depending on the assessment of the collectability of the loan. We resume accruing interest once a loan complies with all of its original terms or restructured terms. Mortgage loans deemed uncollectible are charged against the valuation allowance, and subsequent recoveries, if any, are credited to the valuation allowance. We establish a valuation allowance to provide for the risk of credit losses inherent in our portfolio. The valuation allowance includes specific valuation allowances for loans that are deemed to be impaired as well as general valuation allowances for pools of loans with similar risk characteristics where a property risk or market specific risk has not been identified but for which we anticipate a loss may occur. Loans are considered impaired when it is probable that, based upon current information and events, we will be unable to collect all amounts due under the contractual terms of the loan agreement. When we determine that a loan is impaired, a specific valuation allowance is established for the excess carrying value of the loan over its estimated value. The loan’s estimated value is based on: the present value of expected future cash flows discounted at the loan’s effective interest rate; the loan’s observable market price; or the fair value of the loan’s collateral. Changes in valuation allowances are reported in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). General valuation allowances are primarily based on loss history adjusted for current conditions. Valuation allowances are maintained at a level we believe is adequate to absorb estimated probable credit losses. Our periodic evaluation of the adequacy of the valuation allowances is based on historical loss experience, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay (including the timing of future payments), the estimated value of the underlying collateral, composition of the loan portfolio, current economic conditions and other relevant factors. Our commercial loan portfolio is primarily comprised of long-term loans secured by existing commercial real estate. We believe all of the commercial loans in our portfolio share three primary risks: borrower credit worthiness; sustainability of the cash flow of the property; and market risk; therefore, our methods of monitoring and assessing credit risk are consistent for our entire portfolio. For our commercial mortgage loan portfolio, trends in market vacancy and rental rates are incorporated into the analysis that we perform for monitored loans and may contribute to the establishment of (or an increase or decrease in) a valuation allowance. In addition, we review each loan individually in our commercial mortgage loan portfolio on an annual basis to identify emerging risks. We focus on properties that experienced a reduction in debt-service coverage or that have significant exposure to tenants with deteriorating credit profiles. Where warranted, we establish or increase a valuation allowance for a specific loan based upon this analysis. We measure and assess the credit quality of our commercial mortgage loans by using loan-to-value and debt-service coverage ratios. The loan-to-value ratio compares the principal amount of the loan to the fair value at origination of the underlying property collateralizing the loan and is commonly expressed as a percentage. Loan-to-value ratios greater than 100 % indicate that the principal amount is greater than the collateral value. Therefore, all else being equal, a lower loan-to-value ratio generally indicates a higher quality loan. The debt-service coverage ratio compares a property’s net operating income to its debt-service payments. Debt-service coverage ratios of less than 1.0 indicate that property operations do not generate enough income to cover its current debt payments. Therefore, all else being equal, a higher debt-service coverage ratio generally indicates a higher quality loan. Our residential loan portfolio is primarily comprised of first lien mortgages secured by existing residential real estate. In contrast to the commercial mortgage loan portfolio, residential mortgage loans are primarily smaller-balance homogenous loans that share similar risk characteristics. Therefore, these pools of loans are collectively evaluated for inherent credit losses. Such evaluations consider numerous factors, including, but not limited to borrower credit scores, collateral values, loss forecasts, geographic location, delinquency rates and economic trends. These evaluations and assessments are revised as conditions change and new information becomes available, which can cause the valuation allowances to increase or decrease over time as such evaluations are revised. Residential mortgage loan pools exclude loans that have been impaired as those loans are evaluated individually using the evaluation framework for specific valuation allowances described above. For residential mortgage loans, our primary credit quality indicator is whether the loan is performing or nonperforming. We generally define nonperforming residential mortgage loans as those that are 90 or more days past due and/or in nonaccrual status. There is generally a higher risk of experiencing credit losses when a residential mortgage loan is nonperforming. |
Policy Loans | Policy Loans Policy loans represent loans we issue to contract holders that use the cash surrender value of their life insurance policy as collateral. Policy loans are carried at unpaid principal balances. |
Real Estate | Real Estate Real estate includes both real estate held for the production of income and real estate held-for-sale. Real estate held for the production of income is carried at cost less accumulated depreciation. Depreciation is calculated on a straight-line basis over the estimated useful life of the asset. We periodically review properties held for the production of income for impairment. Properties whose carrying values are greater than their projected undiscounted cash flows are written down to estimated fair value, with impairment losses reported in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). The estimated fair value of real estate is generally computed using the present value of expected future cash flows from the real estate discounted at a rate commensurate with the underlying risks. Real estate classified as held-for-sale is stated at the lower of depreciated cost or fair value less expected disposition costs at the time classified as held-for-sale. Real estate is not depreciated while it is classified as held-for-sale. Also, valuation allowances are established, as appropriate, for real estate held-for-sale and any changes to the valuation allowances are reported in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). Real estate acquired through foreclosure proceedings is recorded at fair value at the settlement date. |
Derivative Instruments | Derivative Instruments We hedge certain portions of our exposure to interest rate risk, foreign currency exchange risk, equity market risk and credit risk by entering into derivative transactions. All of our derivative instruments are recognized as either assets or liabilities on our Consolidated Balance Sheets at estimated fair value. W e categorized derivatives into a three-level hierarchy, based on the priority of the inputs to the respective valuation technique as discussed above in “Fair Value Measurement.” The accounting for changes in the estimated fair value of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship, and further, on the type of hedging relationship. For those derivative instruments that are designated and qualify as hedging instruments, we designate the hedging instrument based upon the exposure being hedged: as a cash flow hedge or a fair value hedge. For derivative instruments that are designated and qualify as a cash flow hedge, the effective portion of the gain or loss on the derivative instrument is reported as a component of AOCI and reclassified into net income in the same period or periods during which the hedged transaction affects net income. The remaining gain or loss on the derivative instrument in excess of the cumulative change in the present value of designated future cash flows of the hedged item (hedge ineffectiveness), if any, is recognized in net income during the period of change. For derivative instruments that are designated and qualify as a fair value hedge, the gain or loss on the derivative instrument, as well as the offsetting gain or loss on the hedged item attributable to the hedged risk are recognized in net income during the period of change in estimated fair values. For derivative instruments not designated as hedging instruments, but that are economic hedges, the gain or loss is recognized in net income. We purchase and issue financial instruments and products that contain embedded derivative instruments. When it is determined that the embedded derivative possesses economic characteristics that are not clearly and closely related to the economic characteristics of the host contract, and a separate instrument with the same terms would qualify as a derivative instrument, the embedded derivative is bifurcated from the host for measurement purposes. The embedded derivative is carried at fair value with changes in fair value recognized in net income during the period of change. We employ several different methods for determining the fair value of our derivative instruments. The fair value of our derivative contracts are measured based on current settlement values, which are based on quoted market prices, industry standard models that are commercially available and broker quotes. These techniques project cash flows of the derivatives using current and implied future market conditions. We calculate the present value of the cash flows to measure the current fair market value of the derivative. |
Cash and Invested Cash | Cash and Invested Cash Cash and invested cash is carried at cost and includes all highly liquid debt instruments purchased with an original maturity of three months or less . |
DAC, VOBA, DSI and DFEL | DAC, VOBA, DSI and DFEL Acquisition costs directly related to successful contract acquisitions or renewals of universal life insurance (“UL”), variable universal life insurance (“VUL”), traditional life insurance, annuities and other investment contracts have been deferred (i.e., DAC) to the extent recoverable. VOBA is an intangible asset that reflects the estimated fair value of in-force contracts in a life insurance company acquisition and represents the portion of the purchase price that is allocated to the value of the right to receive future cash flows from the business in force at the acquisition date. Bonus credits and excess interest for dollar cost averaging contracts are considered DSI. Contract sales charges that are collected in the early years of an insurance contract are deferred (i.e., DFEL), and the unamortized balance is reported in other contract holder funds on our Consolidated Balance Sheets. Both DAC and VOBA amortization, excluding amounts reported in realized gain (loss), is reported within commissions and other expenses on our Consolidated Statements of Comprehensive Income (Loss). DSI amortization, excluding amounts reported in realized gain (loss), is reported in interest credited on our Consolidated Statements of Comprehensive Income (Loss). The amortization of DFEL, excluding amounts reported in realized gain (loss), is reported within fee income on our Consolidated Statements of Comprehensive Income (Loss). The methodology for determining the amortization of DAC, VOBA, DSI and DFEL varies by product type. For all insurance contracts, amortization is based on assumptions consistent with those used in the development of the underlying contract adjusted for emerging experience and expected trends. Acquisition costs for UL and VUL insurance and investment-type products, which include fixed and variable deferred annuities, are generally amortized over the lives of the policies in relation to the incidence of estimated gross profits (“EGPs”) from surrender charges, investment, mortality net of reinsurance ceded and expense margins and actual realized gain (loss) on investments. Contract lives for UL and VUL policies are estimated to be 40 years based on the expected lives of the contracts. Contract lives for fixed and variable deferred annuities are generally between 15 and 30 years, while some of our fixed multi-year guarantee products have amortization periods equal to the guarantee period. The front-end load annuity product has an assumed life of 25 years. Longer lives are assigned to those blocks that have demonstrated lower lapse experience. Acquisition costs for all traditional contracts, including traditional life insurance contracts, such as individual whole life, group business and term life insurance, are amortized over the expected premium-paying period that generally results in amortization less than 30 years. Acquisition costs are either amortized on a straight-line basis or as a level percent of premium of the related policies depending on the block of business. There is currently no DAC, VOBA, DSI or DFEL balance or related amortization for fixed and variable payout annuities. We account for modifications of insurance contracts that result in a substantially unchanged contract as a continuation of the replaced contract. We account for modifications of insurance contracts that result in a substantially changed contract as an extinguishment of the replaced contract. The carrying amounts of DAC, VOBA, DSI and DFEL are adjusted for the effects of realized and unrealized gains and losses on securities classified as fixed maturity AFS and certain derivatives and embedded derivatives . Amortization expense of DAC, VOBA, DSI and DFEL reflects an assumption for an expected level of credit-related investment losses. When actual credit-related investment losses are realized, we recognize a true-up to our DAC, VOBA, DSI and DFEL amortization within realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss) reflecting the incremental effect of actual versus expected credit-related investment losses. These actual to expected amortization adjustments can create volatility from period to period in realized gain (loss). During the third quarter of each year, we conduct our annual comprehensive review of the assumptions and the projection models used for our estimates of future gross profits underlying the amortization of DAC, VOBA, DSI and DFEL and the calculations of the embedded derivatives and reserves for life insurance and annuity products. These assumptions include, but are not limited to, capital markets, investment margins, mortality, retention, rider utilization and maintenance expenses (costs associated with maintaining records relating to insurance and individual and group annuity contracts, and with the processing of premium collections, deposits, withdrawals and commissions). Based on our review, the cumulative balances of DAC, VOBA, DSI and DFEL included on our Consolidated Balance Sheets are adjusted with an offsetting benefit or charge to revenue or amortization expense to reflect such change related to our expectations of future EGPs (“unlocking”). We may have unlocking in other quarters as we become aware of information that warrants updating assumptions outside of our annual comprehensive review. We may also identify and implement actuarial modeling refinements that result in increases or decreases to the carrying values of DAC, VOBA, DSI, DFEL, embedded derivatives and reserves for life insurance and annuity products with living benefit and death benefit guarantees. DAC, VOBA, DSI and DFEL are reviewed to ensure that the unamortized portion does not exceed the expected recoverable amounts. |
Reinsurance | Reinsurance We and our insurance subsidiaries enter into reinsurance agreements in the normal course of business to limit our exposure to the risk of loss and to enhance our capital management. In order for a reinsurance agreement to qualify for reinsurance accounting, the agreement must satisfy certain risk transfer conditions that include, among other items, a reasonable possibility of a significant loss for the assuming entity. When we apply reinsurance accounting, premiums, benefits and DAC amortization are reported net of insurance ceded on our Consolidated Statements of Comprehensive Income (Loss). Amounts currently recoverable, such as ceded reserves, are reported in reinsurance recoverables and amounts currently payable to the reinsurers, such as premiums, are included in other liabilities on our Consolidated Balance Sheets. Assets and liabilities and premiums and benefits from certain reinsurance contracts that grant statutory surplus relief to our insurance companies are netted on our Consolidated Balance Sheets and Consolidated Statements of Comprehensive Income (Loss), respectively, if there is a contractual right of offset. We use deposit accounting to recognize reinsurance agreements that do not transfer significant insurance risk. This accounting treatment results in amounts paid or received by our insurance subsidiaries to be considered on deposit with the reinsurer and such amounts are reported in other assets and other liabilities, respectively, on our Consolidated Balance Sheets. As amounts are paid or received, consistent with the underlying contracts, deposit assets or liabilities are adjusted. |
Goodwill | Goodwill We recognize the excess of the purchase price, plus the fair value of any noncontrolling interest in the acquiree, over the fair value of identifiable net assets acquired as goodwill. Goodwill is not amortized, but is reviewed for impairment annually as of October 1 and more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. We perform a quantitative goodwill impairment test where the fair value of the reporting unit is determined and compared to the carrying value of the reporting unit. If the carrying value of the reporting unit is greater than the reporting unit’s fair value, goodwill is impaired and written down to the reporting unit’s fair value; and a charge is reported in impairment of intangibles on our Consolidated Statements of Comprehensive Income (Loss). The results of one goodwill impairment test on one reporting unit cannot subsidize the results of another reporting unit. |
Other Assets and Other Liabilities | Other Assets and Other Liabilities Other assets consist primarily of DSI, specifically identifiable intangible assets, property and equipment owned by the Company, balances associated with corporate-owned and bank-owned life insurance, certain reinsurance assets, receivables resulting from sales of securities that had not yet settled as of the balance sheet date, debt issuance costs associated with line-of-credit arrangements, operating lease right-of-use (“ROU”) assets, finance lease assets, certain financing arrangements and other prepaid expenses. Other liabilities consist primarily of current and deferred taxes, pension and other employee benefit liabilities, derivative instrument liabilities, certain reinsurance payables, payables resulting from purchases of securities that had not yet settled as of the balance sheet date, interest on borrowed funds, long-term operating lease liabilities, finance lease liabilities, certain financing arrangements, deferred gain on business sold through reinsurance and other accrued expenses. Other assets and other liabilities on our Consolidated Balance Sheets include guaranteed living benefit (“GLB”) features and remaining guaranteed interest and similar contracts that are carried at fair value, which may be reported in either other assets or other liabilities. The fair value of these items represents approximate exit price including an estimate for our NPR. Certain of these features have elements of both insurance benefits and embedded derivatives. Through our hybrid accounting approach, for reserve calculation purposes we assign product cash flows to the embedded derivative or insurance portion of the reserves based on the life-contingent nature of the benefits. We classify these GLB reserves embedded derivatives in Level 3 within the hierarchy levels described above in “Fair Value Measurement.” We report the insurance portion of the reserves in future contract benefits. The carrying values of specifically identifiable intangible assets are reviewed at least annually for indicators of impairment in value that are other-than-temporary, including unexpected or adverse changes in the following: the economic or competitive environments in which the company operates; profitability analyses; cash flow analyses; and the fair value of the relevant business operation. If there was an indication of impairment, then the discounted cash flow method would be used to measure the impairment, and the carrying value would be adjusted as necessary and reported in impairment of intangibles on our Consolidated Statements of Comprehensive Income (Loss). Sales force intangibles are attributable to the value of the new business distribution system acquired through business combinations. These assets are amortized on a straight-line basis over their useful life of 25 years. Specifically identifiable intangible assets also includes the value of customer relationships acquired (“VOCRA”) and value of distribution agreements (“VODA”) that were acquired through our business combination during 2018. The carrying values of VOCRA and VODA are amortized using a straight line basis over their weighted average life of 20 years and 13 years, respectively. See Note 10 for more information regarding specifically identifiable intangible assets acquired. Property and equipment owned for company use is carried at cost less allowances for depreciation. Provisions for depreciation of investment real estate and property and equipment owned for company use are computed principally on the straight-line method over the estimated useful lives of the assets, which include buildings, computer hardware and software and other property and equipment. Certain assets on our Consolidated Balance Sheets are related to finance leases and certain financing arrangements and are depreciated in a manner consistent with our current depreciation policy for owned assets. We periodically review the carrying value of our long-lived assets, including property and equipment, for impairment whenever events or circumstances indicate that the carrying amount of such assets may not be fully recoverable. For long-lived assets to be held and used, impairments are recognized when the carrying amount of a long-lived asset is not recoverable and exceeds its fair value. The carrying amount of a long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. An impairment loss is measured as the amount by which the carrying amount of a long-lived asset exceeds its fair value. Long-lived assets to be disposed of by abandonment or in an exchange for a similar productive long-lived asset are classified as held-for-use until they are disposed. Long-lived assets to be sold are classified as held-for-sale and are no longer depreciated. Certain criteria have to be met in order for the long-lived asset to be classified as held-for-sale, including that a sale is probable and expected to occur within one year. Long-lived assets classified as held-for-sale are recorded at the lower of their carrying amount or fair value less cost to sell. Effective January 1, 2019, we adopted Accounting Standards Update (“ASU”) 2016-02, which resulted in a new measurement and recognition of our long-term operating leases on our Consolidated Balance Sheets. We lease office space and certain equipment under various long-term lease agreements. We determine if an arrangement is a lease at inception. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at the commencement date. Our leases do not provide an implicit rate; therefore, we use our incremental borrowing rate at the commencement date in determining the present value of future payments. The ROU asset is calculated using the lease liability carrying amount, plus or minus prepaid/accrued lease payments, minus the unamortized balance of lease incentives received, plus unamortized initial direct costs. Lease terms used to calculate our lease obligation include options when we are reasonably certain that we will exercise such options. Our lease agreements may contain both lease and non-lease components, which are accounted for separately. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. See Notes 2 and 14 for additional information. Other assets includes deferred losses on business sold through reinsurance attributable to our 2012 and 2014 reinsurance transactions where we ceded closed blocks of UL contracts with secondary guarantees to Lincoln National Reinsurance Company (Barbados) Limited (“LNBAR”), a wholly-owned subsidiary of LNC. We are recognizing the losses related to these transactions over a period of 30 years. Other liabilities includes deferred gains on business sold through reinsurance. During 2009, we completed a reinsurance transaction whereby we assumed a closed block of term contracts from First Penn-Pacific Life Insurance Company, a wholly-owned subsidiary of LNC. We are recognizing the gain related to this transaction over a period of 15 years. During 2012, we completed a reinsurance transaction whereby we ceded a closed block of UL contracts with secondary guarantees to LNBAR. We are recognizing the gain related to the transaction over a period of 30 years. During 2013, we completed a reinsurance transaction whereby we ceded a closed block of UL contracts with secondary guarantees to LNBAR. During 2019, we amended the 2013 reinsurance transaction by recapturing the underlying base policy from LNBAR while continuing to cede the associated riders. We are recognizing the gain related to this transaction over the expected life of the underlying business, or 20 years. Effective October 1, 2018, we entered into an annuity reinsurance agreement with Athene Holding Ltd. (“Athene”). We are recognizing the gain related to this transaction over the period over which the majority of account values are expected to run off, or 20 years. |
Separate Account Assets and Liabilities | Separate Account Assets and Liabilities We maintain separate account assets, which are reported at fair value. The related liabilities are reported at an amount equivalent to the separate account assets. Investment risks associated with market value changes are borne by the contract holders, except to the extent of minimum guarantees made by the Company with respect to certain accounts. We issue variable annuity contracts through our separate accounts for which investment income and investment gains and losses accrue directly to, and investment risk is borne by, the contract holder (traditional variable annuities). We also issue variable annuity and life contracts through separate accounts that may include various types of guaranteed death benefit (“GDB”), guaranteed withdrawal benefit (“GWB”) and guaranteed income benefit (“GIB”) features. The GDB features include those where we contractually guarantee to the contract holder either: return of no less than total deposits made to the contract less any partial withdrawals (“return of net deposits”); total deposits made to the contract less any partial withdrawals plus a minimum return (“minimum return”); or the highest contract value on any contract anniversary date through age 80. The highest contract value is increased by purchase payments and is decreased by withdrawals subsequent to that anniversary date in the same proportion that withdrawals reduce the contract value. As discussed in Note 6, certain features of these guarantees are accounted for as embedded derivative reserves, whereas other guarantees are accounted for as benefit reserves. Other guarantees contain characteristics of both and are accounted for under an approach that calculates the value of the embedded derivative reserve and the benefit reserve based on the specific characteristics of each GLB feature. We use derivative instruments to hedge our exposure to the risks and earnings volatility that result from the embedded derivatives for living benefits in certain of our variable annuity products. The change in fair value of these instruments tends to move in the opposite direction of the change in the value of the associated reserves. The net impact of these changes is reported as a component of realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). The “market consistent scenarios” used in the determination of the fair value of the GLB liability are similar to those used by an investment bank to value derivatives for which the pricing is not transparent and the aftermarket is nonexistent or illiquid. We use risk-neutral Monte Carlo simulations in our calculation to value the entire block of guarantees, which involve 100 unique scenarios per policy or approximately 49 million scenarios. The market consistent scenario assumptions, as of each valuation date, are those we view to be appropriate for a hypothetical market participant. The market consistent inputs include, but are not limited to, assumptions for capital markets (e.g., implied volatilities, correlation among indices, risk-free swap curve, etc.), policyholder behavior (e.g., policy lapse, rider utilization, etc.), mortality, risk margins, maintenance expenses and a margin for profit. We believe these assumptions are consistent with those that would be used by a market participant; however, as the related markets develop we will continue to reassess our assumptions. It is possible that different valuation techniques and assumptions could produce a materially different estimate of fair value. |
Future Contract Benefits and Other Contract Holder Funds | Future Contract Benefits and Other Contract Holder Funds Future contract benefits represent liability reserves that we have established and carry based on estimates of how much we will need to pay for future benefits and claims. Other contract holder funds represent liabilities for fixed account values, including the fixed portion of variable, dividends payable, premium deposit funds, undistributed earnings on participating business and other contract holder funds as well as the carrying value of DFEL discussed above. The liabilities for future contract benefits and claim reserves for UL and VUL insurance policies consist of contract account balances that are equal to deposits net of withdrawals, excluding surrender charges and fees, plus interest credited, and if applicable an additional reserve for other insurance benefit guarantees. The liabilities for future insurance contract benefits and claim reserves for traditional life policies are computed using assumptions for investment yields, mortality and withdrawals based principally on generally accepted actuarial methods and assumptions at the time of contract issue. Investment yield assumptions for traditional direct individual life reserves for all contracts range from 2.25 % to 7.75 % depending on the time of contract issue. The investment yield assumptions for immediate and deferred paid-up annuities range from 1.25 % to 12.75 %. These investment yield assumptions are intended to represent an estimation of the interest rate experience for the period that these contract benefits are payable. The liabilities for future claim reserves for variable annuity products containing GDB features are calculated by estimating the present value of total expected benefit payments over the life of the contract from inception divided by the present value of total expected assessments over the life of the contract (“benefit ratio”) multiplied by the cumulative assessments recorded from the contract inception through the balance sheet date less the cumulative GDB payments plus interest on the liability. The change in the liability for a period is the benefit ratio multiplied by the assessments recorded for the period less GDB claims paid in the period plus interest. As experience or assumption changes result in a change in expected benefit payments or assessments, the benefit ratio is unlocked, that is, recalculated using the updated expected benefit payments and assessments over the life of the contract since inception. The revised benefit ratio is then applied to the liability calculation described above, with the resulting change in liability reported in benefits on our Consolidated Statements of Comprehensive Income (Loss). The liability for future claim reserves for long-term disability contracts for incurred and reported claims are calculated based on assumptions as to interest, claim resolution rates and offsets for other insurance including social security. Claim resolution rate assumptions and social security offsets are based on our actual experience. The interest rate assumptions used for discounting claim reserves are based on projected portfolio yield rates, after consideration for defaults and investment expenses, for assets supporting the liabilities. The incurred but not reported claim reserves are based on our experiences as to the reporting lags and ultimate loss experience. Claim reserves are subject to revision as current claim experience and projections of future factors affecting claim experience change. Claim reserves do not include a provision for adverse deviation. With respect to our future contract benefits and other contract holder funds , we continually review overall reserve position, reserving techniques and reinsurance arrangements. As experience develops and new information becomes known, liabilities are adjusted as deemed necessary. The effects of changes in estimates are included in the operating results for the period in which such changes occur. The business written or assumed by us includes participating life insurance contracts, under which the contract holder is entitled to share in the earnings of such contracts via receipt of dividends. The dividend scale for participating policies is reviewed annually and may be adjusted to reflect recent experience and future expectations. As of December 31, 2019 and 2018, participating policies comprised less than 1 % of the face amount of business in force, and dividend expenses were $ 51 million, $ 56 million and $ 57 million for the years ended December 31, 2019, 2018 and 2017, respectively. Liabilities for the secondary guarantees on UL-type products are calculated by multiplying the benefit ratio by the cumulative assessments recorded from contract inception through the balance sheet date less the cumulative secondary guarantee benefit payments plus interest. If experience or assumption changes result in a new benefit ratio, the reserves are adjusted to reflect the changes in a manner similar to the unlocking of DAC, VOBA, DFEL and DSI. The accounting for secondary guarantee benefits impacts, and is impacted by, EGPs used to calculate amortization of DAC, VOBA, DFEL and DSI. Certain of our variable annuity contracts reported within future contract benefits contain GLB reserves embedded derivatives, a portion of which may be reported in either other assets or other liabilities, and include guaranteed interest and similar contracts, that are carried at fair value on our Consolidated Balance Sheets, which represents approximate exit price including an estimate for our NPR. Certain of these features have elements of both insurance benefits and embedded derivatives. Through our hybrid accounting approach, for reserve calculation purposes we assign product cash flows to the embedded derivative or insurance portion of the reserves based on the life-contingent nature of the benefits. We classify these GLB reserves embedded derivatives items in Level 3 within the hierarchy levels described above in “Fair Value Measurement.” We report the insurance portion of the reserves in future contract benefits. The fair value of our indexed annuity contracts is based on their approximate surrender values. |
Borrowed Funds | Borrowed Funds Our short-term borrowings are defined as borrowings with contractual or expected maturities of one year or less. Long-term borrowings have contractual or expected maturities greater than one year. |
Contingencies and Commitments | Contingencies and Commitments Contingencies arising from environmental remediation costs, regulatory judgments, claims, assessments, guarantees, litigation, recourse reserves, fines, penalties and other sources are recorded when deemed probable and reasonably estimable. |
Fee Income | Fee Income Fee income for investment and interest-sensitive life insurance contracts consists of asset-based fees, percent of premium charges, contract administration charges and surrender charges that are assessed against contract holder account balances. Investment products consist primarily of individual and group variable and fixed deferred annuities. Interest-sensitive life insurance products include UL insurance, VUL insurance and other interest-sensitive life insurance policies. These products include life insurance sold to individuals, corporate-owned life insurance and bank-owned life insurance. In bifurcating the embedded derivative of our GLB features on our variable annuity products, we attribute to the embedded derivative the portion of total fees collected from the contract holder that relate to the GLB riders (the “attributed fees”), which are not reported within fee income on our Consolidated Statements of Comprehensive Income (Loss). These attributed fees represent the present value of future claims expected to be paid for the GLB at the inception of the contract plus a margin that a theoretical market participant would include for risk/profit and are reported within realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). The timing of revenue recognition as it relates to fees assessed on investment contracts is determined based on the nature of such fees. Asset-based fees, cost of insurance and contract administration charges are assessed on a daily or monthly basis and recognized as revenue as performance obligations are met, over the period underlying customer assets are owned or advisory services are provided. Wholesaling-related 12b-1 fees received from separate account fund sponsors as compensation for servicing the underlying mutual funds are recorded as revenues based on a contractual percentage of the market value of mutual fund assets over the period shares are owned by customers. Net investment advisory fees related to asset management of certain separate account funds are recorded as revenues based on a contractual percentage of the customer’s managed assets over the period advisory services are provided. Percent of premium charges are assessed at the time of premium payment and recognized as revenue when assessed and earned. Certain amounts assessed that represent compensation for services to be provided in future periods are reported as unearned revenue and recognized in income over the periods benefited. Surrender charges are recognized upon surrender of a contract by the contract holder in accordance with contractual terms. For investment and interest-sensitive life insurance contracts, the amounts collected from contract holders are considered deposits and are not included in revenue. |
Insurance Premiums | Insurance Premiums Our insurance premiums for traditional life insurance and group insurance products are recognized as revenue when due from the contract holder. Our traditional life insurance products include those products with fixed and guaranteed premiums and benefits and consist primarily of whole life insurance, limited-payment life insurance, term life insurance and certain annuities with life contingencies. Our group insurance products consist primarily of term life, disability and dental. |
Net Investment Income | Net Investment Income We earn investment income on the underlying general account investments supporting our fixed products less related expenses. Dividends and interest income, recorded in net investment income, are recognized when earned. Amortization of premiums and accretion of discounts on investments in debt securities are reflected in net investment income over the contractual terms of the investments in a manner that produces a constant effective yield. For CLOs and MBS, included in the trading and fixed maturity AFS securities portfolios, we recognize income using a constant effective yield based on anticipated prepayments and the estimated economic life of the securities. When actual prepayments differ significantly from originally anticipated prepayments, the retrospective effective yield is recalculated to reflect actual payments to date and a catch up adjustment is recorded in the current period. In addition, the new effective yield, which reflects anticipated future payments, is used prospectively. Any adjustments resulting from changes in effective yield are reflected in net investment income on our Consolidated Statements of Comprehensive Income (Loss). |
Realized Gain (Loss) | Realized Gain (Loss) Realized gain (loss) includes realized gains and losses from the sale of investments, write-downs for other-than-temporary impairments of investments, changes in fair value of equity securities, certain derivative and embedded derivative gains and losses, gains and losses on the sale of subsidiaries and businesses and net gains and losses on reinsurance embedded derivatives and trading securities. Realized gains and losses on the sale of investments are determined using the specific identification method. Realized gain (loss) is recognized in net income, net of associated amortization of DAC, VOBA, DSI and DFEL. Realized gain (loss) is also net of allocations of investment gains and losses to certain contract holders and certain funds withheld on reinsurance arrangements for which we have a contractual obligation. |
Other Revenues | Other Revenues Other revenues consists primarily of fees attributable to broker-dealer services recorded as performance obligations are met, either at the time of sale or over time based on a contractual percentage of customer account values, changes in the market value of our seed capital investments, and proceeds from reinsurance recaptures. The broker-dealer services primarily relate to our retail sales network and consist 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. Other revenues earned by our Group Protection segment consist of fees from administrative services performed, which are recognized as performance obligations are met over the terms of the underlying agreements. |
Interest Credited | Interest Credited We credit interest to our contract holder account balances based on the contractual terms supporting our products. |
Benefits | Benefits Benefits for UL and other interest-sensitive life insurance products include benefit claims incurred during the period in excess of contract account balances. Benefits also include the change in reserves for life insurance products with secondary guarantee benefits, annuity products with guaranteed death and living benefits and certain annuities with life contingencies. For traditional life, group health and disability income products, benefits are recognized when incurred in a manner consistent with the related premium recognition policies. |
Strategic Digitization Expense | Strategic Digitization Expense Strategic digitization expense consists primarily of costs related to our enterprise-wide digitization initiative. |
Pension and Other Postretirement Benefit Plans | Pension and Other Postretirement Benefit Plans Pursuant to the accounting rules for our obligations to employees and agents under our various pension and other postretirement benefit plans, we are required to make a number of assumptions to estimate related liabilities and expenses. The mortality assumption is based on actual and anticipated plan experience, determined using acceptable actuarial methods. We use assumptions for the weighted-average discount rate and expected return on plan assets to estimate pension expense. The discount rate assumptions are determined using an analysis of current market information and the projected benefit flows associated with these plans. The expected long-term rate of return on plan assets is based on historical and projected future rates of return on the funds invested in the plan. The calculation of our accumulated postretirement benefit obligation also uses an assumption of weighted-average annual rate of increase in the per capita cost of covered benefits, which reflects a health care cost trend rate. |
Stock-Based Compensation | Stock-Based Compensation In general, we expense the fair value of stock awards included in our incentive compensation plans. As of the date LNC’s Board of Directors approves stock awards, the fair value of stock options is determined using a Black-Scholes options valuation methodology, and the fair value of other stock awards is based upon the market value of the stock. The fair value of the awards is expensed over the performance or service period, which generally corresponds to the vesting period, and is recognized as an increase to common stock in stockholder’s equity. We apply an estimated forfeiture rate to our accrual of compensation cost. We classify certain stock awards as liabilities. For these awards, the settlement value is classified as a liability on our Consolidated Balance Sheets, and the liability is marked-to-market through net income at the end of each reporting period. Stock-based compensation expense is reflected in commissions and other expenses on our Consolidated Statements of Comprehensive Income (Loss). |
Interest and Debt Expense | Interest and Debt Expense Interest expense on our short-term and long-term debt is recognized as due and any associated premiums, discounts and costs are amortized (accreted) over the term of the related borrowing utilizing the effective interest method. In addition, gains or losses related to certain derivative instruments associated with debt are recognized in interest and debt expense during the period of the change. |
Income Taxes | Income Taxes LNC files a U.S. consolidated income tax return that includes us and LNC’s other eligible subsidiaries. Ineligible subsidiaries file separate individual corporate tax returns. Deferred income taxes are recognized, based on enacted rates, when assets and liabilities have different values for financial statement and tax reporting purposes. A valuation allowance is recorded to the extent required. Considerable judgment and the use of estimates are required in determining whether a valuation allowance is necessary and, if so, the amount of such valuation allowance. In evaluating the need for a valuation allowance, we consider many factors, including: the nature and character of the deferred tax assets and liabilities; taxable income in prior carryback years; future reversals of temporary differences; the length of time carryovers can be utilized; and any tax planning strategies we would employ to avoid a tax benefit from expiring unused. |
Acquisition (Tables)
Acquisition (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Acquisition [Abstract] | |
Schedule Of Fair Value Of Net Assets Acquired | Adjusted Fair Value Assets Investments $ 2,493 Mortgage loans on real estate 658 Cash and invested cash 107 Reinsurance recoverables 76 Premiums and fees receivable 83 Accrued investment income 24 Other intangible assets acquired 640 Other assets acquired 142 Separate account assets 99 Total assets acquired $ 4,322 Liabilities Future contract benefits $ 2,930 Other contract holder funds 46 Other liabilities acquired 140 Separate account liabilities 99 Total liabilities assumed $ 3,215 Net identifiable assets acquired $ 1,107 Goodwill 410 Net assets acquired $ 1,517 |
Schedule Of Pro Forma Information | For the Years Ended December 31, 2018 2017 Revenue $ 16,097 $ 15,080 Net income 1,642 2,034 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Reconciliation Of Available-For-Sale Securities From Cost Basis To Fair Value | As of December 31, 2019 Amortized Gross Unrealized Fair Cost Gains Losses OTTI (1) Value Fixed maturity AFS securities: Corporate bonds $ 78,875 $ 9,071 $ 172 $ ( 5 ) $ 87,779 U.S. government bonds 355 48 - - 403 State and municipal bonds 4,605 1,087 7 - 5,685 Foreign government bonds 326 62 - - 388 RMBS 2,820 179 9 ( 18 ) 3,008 CMBS 1,038 45 1 ( 1 ) 1,083 ABS 4,803 62 17 ( 35 ) 4,883 Hybrid and redeemable preferred securities 485 79 20 - 544 Total fixed maturity AFS securities $ 93,307 $ 10,633 $ 226 $ ( 59 ) $ 103,773 As of December 31, 2018 Amortized Gross Unrealized Fair Cost Gains Losses OTTI (1) Value Fixed maturity AFS securities: Corporate bonds $ 78,837 $ 2,871 $ 2,167 $ ( 8 ) $ 79,549 U.S. government bonds 361 27 2 - 386 State and municipal bonds 4,498 703 17 - 5,184 Foreign government bonds 402 42 - - 444 RMBS 3,099 113 61 ( 13 ) 3,164 CMBS 810 6 16 ( 3 ) 803 ABS 2,644 45 30 ( 19 ) 2,678 Hybrid and redeemable preferred securities 568 44 33 - 579 Total fixed maturity AFS securities $ 91,219 $ 3,851 $ 2,326 $ ( 43 ) $ 92,787 (1) Includes unrealized (gains) and losses on credit-impaired securities related to changes in the fair value of such securities subsequent to the impairment measurement date. |
Available-For-Sale Securities By Contractual Maturities | Amortized Fair Cost Value Due in one year or less $ 2,714 $ 2,699 Due after one year through five years 15,022 15,578 Due after five years through ten years 17,440 18,854 Due after ten years 49,470 57,668 Subtotal 84,646 94,799 Structured securities (RMBS, CMBS, ABS) 8,661 8,974 Total fixed maturity AFS securities $ 93,307 $ 103,773 |
Fair Value And Gross Unrealized Losses In A Continuous Unrealized Loss Position | As of December 31, 2019 Less Than or Equal Greater Than to Twelve Months Twelve Months Total Gross Gross Gross Unrealized Unrealized Unrealized Fair Losses and Fair Losses and Fair Losses and Value OTTI Value OTTI Value OTTI Fixed maturity AFS securities: Corporate bonds $ 2,827 $ 44 $ 1,381 $ 131 $ 4,208 $ 175 State and municipal bonds 316 7 18 - 334 7 RMBS 471 9 15 - 486 9 CMBS 48 1 4 - 52 1 ABS 1,791 8 300 9 2,091 17 Hybrid and redeemable preferred securities 29 1 102 19 131 20 Total fixed maturity AFS securities $ 5,482 $ 70 $ 1,820 $ 159 $ 7,302 $ 229 Total number of fixed maturity AFS securities in an unrealized loss position 882 As of December 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 $ 30,947 $ 1,464 $ 7,023 $ 704 $ 37,970 $ 2,168 U.S. government bonds 70 1 23 1 93 2 State and municipal bonds 376 7 92 10 468 17 RMBS 436 9 796 55 1,232 64 CMBS 470 11 82 5 552 16 ABS 1,237 23 239 16 1,476 39 Hybrid and redeemable preferred securities 94 6 131 27 225 33 Total fixed maturity AFS securities $ 33,630 $ 1,521 $ 8,386 $ 818 $ 42,016 $ 2,339 Total number of fixed maturity AFS securities in an unrealized loss position 3,360 |
Schedule Of Available-For-Sale Securities Whose Value Is Below Amortized Cost | As of December 31, 2019 Number Fair Gross Unrealized of Value Losses OTTI Securities (1) Less than six months $ 15 $ 5 $ - 7 Six months or greater, but less than nine months 10 3 - 4 Twelve months or greater 130 74 - 31 Total $ 155 $ 82 $ - 42 As of December 31, 2018 Number Fair Gross Unrealized of Value Losses OTTI Securities (1) Less than six months $ 389 $ 122 $ 1 44 Six months or greater, but less than nine months 96 49 - 11 Nine months or greater, but less than twelve months 11 8 - 2 Twelve months or greater 138 70 8 32 Total $ 634 $ 249 $ 9 89 (1) We may reflect a security in more than one aging category based on various purchase dates. |
Schedule Of Changes In Amount Of Credit Losses Of OTTI Recognized In Net Income (Loss) | For the Years Ended December 31, 2019 2018 2017 Balance as of beginning-of-year $ 337 $ 358 $ 411 Increases attributable to: Credit losses on securities for which an OTTI was not previously recognized 13 5 13 Credit losses on securities for which an OTTI was previously recognized 2 2 7 Decreases attributable to: Securities sold, paid down or matured ( 148 ) ( 28 ) ( 73 ) Balance as of end-of-year $ 204 $ 337 $ 358 |
Fair Value Of Trading Securities | As of December 31, 2019 2018 Fixed maturity securities: Corporate bonds $ 2,877 $ 1,559 U.S. government bonds 45 43 State and municipal bonds 16 16 Foreign government bonds 45 23 RMBS 169 78 CMBS 163 7 ABS 1,238 121 Hybrid and redeemable preferred securities 49 22 Total trading securities $ 4,602 $ 1,869 |
Composition Of Current And Past Due Mortgage Loans On Real Estate | As of December 31, 2019 As of December 31, 2018 Commercial Residential Total Commercial Residential Total Current $ 15,525 $ 659 $ 16,184 $ 12,959 $ 230 $ 13,189 30 to 59 days past due 3 27 30 - 9 9 60 to 89 days past due - 10 10 - 1 1 90 or more days past due - 16 16 - - - Valuation allowance - ( 2 ) ( 2 ) - - - Unamortized premium (discount) ( 17 ) 23 6 ( 17 ) 8 ( 9 ) Total carrying value $ 15,511 $ 733 $ 16,244 $ 12,942 $ 248 $ 13,190 |
Changes In The Valuation Allowance Of Impaired Mortgage Loans On Real Estate | For the Years Ended December 31, 2019 2018 2017 Valuation Allowance Balance as of beginning-of-year $ - $ 3 $ 2 Additions - - 1 Charge-offs, net of recoveries - ( 3 ) - Balance as of end-of-year $ - $ - $ 3 |
Schedule Of Average Carrying Value Of Impaired Mortgage Loans On Real Estate | For the Years Ended December 31, 2019 2018 2017 Average carrying value for impaired commercial mortgage loans on real estate $ - $ 5 $ 6 Interest income recognized on impaired commercial mortgage loans on real estate - 1 - Interest income collected on impaired commercial mortgage loans on real estate - 1 - |
Net Investment Income | For the Years Ended December 31, 2019 2018 2017 Fixed maturity AFS securities $ 4,214 $ 4,129 $ 4,048 Equity AFS securities - - 12 Trading securities 187 79 88 Equity securities 4 4 - Mortgage loans on real estate 626 492 433 Real estate 1 1 1 Policy loans 128 122 134 Invested cash 33 23 11 Commercial mortgage loan prepayment and bond make-whole premiums 115 78 138 Alternative investments 24 222 165 Consent fees 7 4 6 Other investments 27 24 5 Investment income 5,366 5,178 5,041 Investment expense ( 404 ) ( 334 ) ( 281 ) Net investment income $ 4,962 $ 4,844 $ 4,760 |
Schedule Of Realized Gain (Loss) | For the Years Ended December 31, 2019 2018 2017 Fixed maturity AFS securities: Gross gains $ 44 $ 36 $ 17 Gross losses ( 70 ) ( 80 ) ( 43 ) Gross OTTI ( 15 ) ( 7 ) ( 20 ) Equity AFS securities: Gross gains - - 6 Gain (loss) on other investments (1) ( 15 ) ( 15 ) ( 10 ) Associated amortization of DAC, VOBA, DSI and DFEL and changes in other contract holder funds ( 13 ) ( 22 ) ( 21 ) Total realized gain (loss) related to certain investments ( 69 ) ( 88 ) ( 71 ) Realized gain (loss) on the mark-to-market on certain instruments (2) ( 426 ) 251 ( 155 ) Indexed annuity and IUL contracts net derivatives results: (3) Gross gain (loss) ( 80 ) ( 51 ) ( 22 ) Associated amortization of DAC, VOBA, DSI and DFEL 2 12 ( 2 ) GLB fees ceded to LNBAR and attributed fees: Gross gain (loss) ( 223 ) ( 184 ) ( 174 ) Associated amortization of DAC, VOBA, DSI and DFEL ( 32 ) ( 32 ) ( 32 ) Total realized gain (loss) $ ( 828 ) $ ( 92 ) $ ( 456 ) (1) Includes market adjustments on equity securities still held of $( 4 ) million and $( 17 ) million for the years ended December 31, 2019 and 2018, respectively. (2) Represents changes in the fair values of certain derivative investments (not including those associated with our variable and indexed annuity and indexed variable universal life insurance (“IUL”) contracts net derivatives results), reinsurance related embedded derivatives and trading securities. See Notes 1 and 9 for information regarding Modco. (3) Represents the net difference between the change in fair value of the index options that we hold and the change in the fair value of the embedded derivative liabilities of our indexed annuity and IUL contracts along with changes in the fair value of embedded derivative liabilities related to index options we may purchase or sell in the future to hedge contract holder index allocations applicable to future reset periods for our indexed annuity products. |
OTTI Recognized In Net Income (Loss) And OCI | For the Years Ended December 31, 2019 2018 2017 OTTI Recognized in Net Income (Loss) Fixed maturity AFS securities: Corporate bonds $ ( 13 ) $ ( 5 ) $ ( 13 ) State and municipal bonds - - ( 1 ) RMBS ( 1 ) ( 1 ) ( 2 ) CMBS - - ( 2 ) ABS ( 1 ) ( 1 ) ( 2 ) Gross OTTI recognized in net income (loss) ( 15 ) ( 7 ) ( 20 ) Associated amortization of DAC, VOBA, DSI and DFEL - - 2 Net OTTI recognized in net income (loss) $ ( 15 ) $ ( 7 ) $ ( 18 ) OTTI Recognized in OCI Gross OTTI recognized in OCI $ 14 $ - $ - Change in DAC, VOBA, DSI and DFEL ( 1 ) - - Net OTTI recognized in OCI $ 13 $ - $ - |
Payables For Collateral On Investments | As of December 31, 2019 As of December 31, 2018 Carrying Fair Carrying Fair Value Value Value Value Collateral payable for derivative investments (1) $ 1,383 $ 1,383 $ 616 $ 616 Securities pledged under securities lending agreements (2) 114 110 88 85 Securities pledged under repurchase agreements (3) - - 152 157 Investments pledged for Federal Home Loan Bank of Indianapolis (“FHLBI”) (4) 3,580 5,480 3,930 5,923 Total payables for collateral on investments $ 5,077 $ 6,973 $ 4,786 $ 6,781 (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. The collateral requirements are generally 80 % 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. As of December 31, 2019, we were not participating in any open repurchase agreements. (4) Our pledged investments for FHLBI are included in fixed maturity AFS securities and mortgage loans on real estate on our Consolidated Balance Sheets. The collateral requirements are generally 105 % to 115 % of the fair value for fixed maturity AFS securities and 155 % to 175 % of the fair value for mortgage loans on real estate. The cash received in these transactions is primarily invested in cash and invested cash or fixed maturity AFS securities. |
Schedule Of Increase (Decrease) In Payables For Collateral On Investments | For the Years Ended December 31, 2019 2018 2017 Collateral payable for derivative investments $ 767 $ ( 85 ) $ ( 112 ) Securities pledged under securities lending agreements 26 ( 134 ) 5 Securities pledged under repurchase agreements ( 152 ) ( 379 ) 1 Investments pledged for FHLBI ( 350 ) 1,030 ( 450 ) Total increase (decrease) in payables for collateral on investments $ 291 $ 432 $ ( 556 ) |
Schedule Of Securities Pledged By Contractual Maturity | As of December 31, 2019 Overnight and Continuous Up to 30 Days 30 - 90 Days Greater Than 90 Days Total Securities Lending Corporate bonds $ 114 $ - $ - $ - $ 114 Total gross secured borrowings $ 114 $ - $ - $ - $ 114 As of December 31, 2018 Overnight and Continuous Up to 30 Days 30 - 90 Days Greater Than 90 Days Total Securities Lending Corporate bonds $ 88 $ - $ - $ - $ 88 Repurchase Agreements Corporate bonds - - - 152 152 Total gross secured borrowings $ 88 $ - $ - $ 152 $ 240 |
Commercial [Member] | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Credit Quality Indicators For Mortgage Loans | As of December 31, 2019 As of December 31, 2018 Debt- Debt- Service Service Carrying % of Coverage Carrying % of Coverage Loan-to-Value Ratio Value Total Ratio Value Total Ratio Less than 65% $ 14,121 91.0 % 2.35 $ 11,656 90.1 % 2.30 65% to 74% 1,389 9.0 % 1.88 1,234 9.5 % 1.76 75% to 100% 1 0.0 % 1.09 52 0.4 % 1.03 Total $ 15,511 100.0 % $ 12,942 100.0 % |
Residential [Member] | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Credit Quality Indicators For Mortgage Loans | As of December 31, 2019 As of December 31, 2018 Carrying % of Carrying % of Performance Indicator Value Total Value Total Performing $ 716 97.7 % $ 247 99.6 % Nonperforming 17 2.3 % 1 0.4 % Total $ 733 100.0 % $ 248 100.0 % |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments [Abstract] | |
Outstanding Derivative Instruments With Off-Balance-Sheet Risks | As of December 31, 2019 As of December 31, 2018 Notional Fair Value Notional Fair Value Amounts Asset Liability Amounts Asset Liability Qualifying Hedges Cash flow hedges: Interest rate contracts (1) $ 1,174 $ 108 $ 12 $ 1,528 $ 33 $ 9 Foreign currency contracts (1) 2,874 191 51 2,326 167 39 Total cash flow hedges 4,048 299 63 3,854 200 48 Fair value hedges: Interest rate contracts (1) 546 - 202 553 - 137 Non-Qualifying Hedges Interest rate contracts (1) 112,921 1,082 219 100,628 464 138 Foreign currency contracts (1) 262 1 3 47 - - Equity market contracts (1) 43,283 1,442 664 30,273 676 162 Credit contracts (1) 55 - - - - - Embedded derivatives: GLB direct (2) - 450 - - 123 - GLB ceded (2) (3) - 60 510 - 72 196 Reinsurance related (4) - - 375 - 188 - Indexed annuity and IUL contracts (2) (5) - 927 2,585 - 902 1,305 Total derivative instruments $ 161,115 $ 4,261 $ 4,621 $ 135,355 $ 2,625 $ 1,986 (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 December 31, 2019 Less Than 1 – 5 6 – 10 11 – 30 Over 30 1 Year Years Years Years Years Total Interest rate contracts (1) $ 11,341 $ 53,011 $ 20,948 $ 28,841 $ 500 $ 114,641 Foreign currency contracts (2) 218 383 961 1,473 101 3,136 Equity market contracts 27,594 7,720 3,762 13 4,194 43,283 Credit contracts - 55 - - - 55 Total derivative instruments with notional amounts $ 39,153 $ 61,169 $ 25,671 $ 30,327 $ 4,795 $ 161,115 (1) As of December 31, 2019, the latest maturity date for which we were hedging our exposure to the variability in future cash flows for these instruments was November 24, 2021 . (2) As of December 31, 2019, the latest maturity date for which we were hedging our exposure to the variability in future cash flows for these instruments was February 26, 2050 . |
Cumulative Basis Adjustments For Fair Value Hedges | As of December 31, 2019 Cumulative Fair Value Hedging Adjustment Included Amortized Cost in the Amortized of the Hedged Cost of the Hedged Assets (Liabilities) Assets (Liabilities) Line Items in which the Hedged Items are Recorded Fixed maturity AFS securities, at fair value $ 776 $ 202 |
Change In Unrealized Gain On Derivative Instruments In Accumulated OCI | For the Years Ended December 31, 2019 2018 2017 Unrealized Gain (Loss) on Derivative Instruments Balance as of beginning-of-year $ 119 $ 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 73 ( 4 ) 43 Foreign currency contracts 108 44 20 Change in foreign currency exchange rate adjustment ( 52 ) 111 ( 137 ) Change in DAC, VOBA, DSI and DFEL ( 5 ) ( 14 ) 1 Income tax benefit (expense) ( 26 ) ( 29 ) 26 Less: Reclassification adjustment for gains (losses) included in net income (loss): Cash flow hedges: Interest rate contracts (1) 3 4 4 Foreign currency contracts (1) 35 27 18 Foreign currency contracts (2) 9 - 9 Associated amortization of DAC, VOBA, DSI and DFEL ( 2 ) ( 3 ) ( 2 ) Income tax benefit (expense) ( 9 ) ( 6 ) ( 10 ) Balance as of end-of-year $ 181 $ 119 $ 27 (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). |
Effects Of Qualifying And Non-Qualifying Hedges | Gain (Loss) Recognized in Income For the Year Ended December 31, 2019 Realized Net Gain Investment (Loss) Income Total Line Items in which the Effects of Fair Value or Cash Flow Hedges are Recorded $ ( 828 ) $ 4,962 Qualifying Hedges Gain or (loss) on fair value hedging relationships: Interest rate contracts: Hedged items - 63 Derivatives designated as hedging instruments - ( 63 ) Gain or (loss) on cash flow hedging relationships: Interest rate contracts: Amount of gain or (loss) reclassified from AOCI into income - 3 Foreign currency contracts: Amount of gain or (loss) reclassified from AOCI into income 9 35 Non-Qualifying Hedges Interest rate contracts 982 - Foreign currency contracts ( 1 ) - Equity market contracts ( 137 ) - Embedded derivatives: GLB 1 - Reinsurance related ( 626 ) - Indexed annuity and IUL contracts ( 742 ) - |
Gains (Losses) On Derivative Instruments Recorded Within Income (Loss) From Continuing Operations | For the Years Ended December 31, 2018 2017 Qualifying Hedges Cash flow hedges: Interest rate contracts (1) $ 4 $ 4 Foreign currency contracts (1) 27 18 Foreign currency contracts (2) - 9 Total cash flow hedges 31 31 Fair value hedges: Interest rate contracts (1) ( 14 ) ( 23 ) Interest rate contracts (2) 37 7 Total fair value hedges 23 ( 16 ) Non-Qualifying Hedges Interest rate contracts (2) ( 149 ) 103 Foreign currency contracts (2) 5 - Equity market contracts (2) 445 ( 1,427 ) Equity market contracts (3) ( 17 ) 28 Credit contracts (3) - 1 Embedded derivatives: GLB (2) ( 1 ) - Reinsurance related (2) 292 ( 141 ) Indexed annuity and IUL contracts (2) 81 ( 400 ) Total derivative instruments $ 710 $ ( 1,821 ) (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 Years Ended December 31, 2018 2017 Offset to net investment income 4 22 Offset to realized gain (loss) 27 9 |
Open Credit Default Swap Liabilities | Credit Reason Nature Rating of Number Maximum for of Underlying of Fair Potential Credit Contract Type Maturity Entering Recourse Obligation (1) Instruments Value (2) Payout Basket credit default swaps 12/20/2024 (3) (4) BBB+ 1 $ 1 $ 55 (1) Represents average credit ratings based on the midpoint of the applicable ratings among Moody ’ s, S&P and Fitch Ratings, as scaled to the corresponding S&P ratings. (2) Broker quotes are used to determine the market value of our credit default swaps. (3) Credit default swaps were entered into in order to hedge the liability exposure on certain variable annuity products. (4) Sellers do not have the right to demand indemnification or compensation from third parties in case of a loss (payment) on the contract. |
Collateral Support Agreements | As of As of December 31, December 31, 2019 2018 Maximum potential payout $ 55 $ - Less: Counterparty thresholds - - Maximum collateral potentially required to post $ 55 $ - |
Schedule Of Collateral Amounts With Rights To Reclaim Or Obligation To Return Cash | As of December 31, 2019 As of December 31, 2018 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- $ 441 $ ( 22 ) $ 33 $ ( 4 ) A+ 549 ( 168 ) 296 ( 26 ) A 36 - 106 ( 36 ) A- 355 - 4 - BBB+ - - 177 - $ 1,381 $ ( 190 ) $ 616 $ ( 66 ) |
Schedule Of Offsetting Assets And Liabilities | As of December 31, 2019 Embedded Derivative Derivative Instruments Instruments Total Financial Assets Gross amount of recognized assets $ 2,619 $ 1,437 $ 4,056 Gross amounts offset ( 708 ) - ( 708 ) Net amount of assets 1,911 1,437 3,348 Gross amounts not offset: Cash collateral ( 1,381 ) - ( 1,381 ) Non-cash collateral ( 242 ) - ( 242 ) Net amount $ 288 $ 1,437 $ 1,725 Financial Liabilities Gross amount of recognized liabilities $ 771 $ 3,470 $ 4,241 Gross amounts offset ( 15 ) - ( 15 ) Net amount of liabilities 756 3,470 4,226 Gross amounts not offset: Cash collateral ( 190 ) - ( 190 ) Non-cash collateral - - - Net amount $ 566 $ 3,470 $ 4,036 As of December 31, 2018 Embedded Derivative Derivative Instruments Instruments Total Financial Assets Gross amount of recognized assets $ 1,282 $ 1,285 $ 2,567 Gross amounts offset ( 201 ) - ( 201 ) Net amount of assets 1,081 1,285 2,366 Gross amounts not offset: Cash collateral ( 616 ) - ( 616 ) Non-cash collateral ( 58 ) - ( 58 ) Net amount $ 407 $ 1,285 $ 1,692 Financial Liabilities Gross amount of recognized liabilities $ 806 $ 1,501 $ 2,307 Gross amounts offset ( 59 ) - ( 59 ) Net amount of liabilities 747 1,501 2,248 Gross amounts not offset: Cash collateral ( 66 ) - ( 66 ) Non-cash collateral ( 190 ) - ( 190 ) Net amount $ 491 $ 1,501 $ 1,992 |
Federal Income Taxes (Tables)
Federal Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Federal Income Taxes [Abstract] | |
Federal Income Tax Expense | For the Years Ended December 31, 2019 2018 2017 Current $ 175 $ 179 $ 118 Deferred ( 212 ) 78 ( 1,405 ) Federal income tax expense (benefit) $ ( 37 ) $ 257 $ ( 1,287 ) |
Reconciliation Of The Effective Tax Rate Differences | For the Years Ended December 31, 2019 2018 2017 Income (loss) before taxes $ 577 $ 1,830 $ 731 Federal statutory rate 21 % 21 % 35 % Federal income tax expense (benefit) at federal statutory rate 121 384 256 Effect of: Tax-preferred investment income (1) ( 99 ) ( 87 ) ( 280 ) Tax credits ( 40 ) ( 39 ) ( 29 ) Excess tax benefits from stock-based compensation ( 6 ) ( 3 ) ( 8 ) Goodwill impairment - - 316 Tax impact associated with the Tax Cuts and Jobs Act (2) ( 16 ) 3 ( 1,526 ) Other items 3 ( 1 ) ( 16 ) Federal income tax expense (benefit) $ ( 37 ) $ 257 $ ( 1,287 ) Effective tax rate - 6 % 14 % - 176 % (1) Relates primarily to separate account dividends eligible for the dividends-received deduction. As a result of the Tax Cuts and Jobs Act (the “Tax Act”), the recorded tax benefit for the separate account dividends-received deduction was substantially less in 2019 and 2018 as compared to 2017. (2) As a result of the enactment of the Tax Act in 2017, we remeasured our existing deferred tax balances at the prevailing corporate federal income tax rate of 21 % and recognized a $ 1.5 billion tax benefit. In 2018, we recognized a $ 3 million net tax benefit from the impact of the reduced federal statutory rate under the Tax Act on our adoption of an Internal Revenue Service pronouncement related to variable annuity contracts. In 2019, we recognized a $ 16 million net tax benefit from the impact of the reduced corporate tax rate under the Tax Act on our election to revalue policyholder tax reserves . |
Federal Income Tax Asset (Liability) | As of December 31, 2019 2018 Current $ 255 $ 205 Deferred ( 2,605 ) ( 1,421 ) Total federal income tax asset (liability) $ ( 2,350 ) $ ( 1,216 ) |
Significant components of deferred tax assets and liabilities | As of December 31, 2019 2018 Deferred Tax Assets Future contract benefits and other contract holder funds $ 527 $ 549 Reinsurance related embedded derivative liability 79 - Compensation and benefit plans 135 120 Intangibles 26 40 Net operating losses 216 264 Other 14 59 Total deferred tax assets $ 997 $ 1,032 Deferred Tax Liabilities DAC $ 854 $ 1,380 VOBA 191 302 Net unrealized gain on fixed maturity AFS securities 2,216 333 Net unrealized gain on trading securities 70 25 Investment activity 154 334 Reinsurance related embedded derivative asset - 39 Deferred gain on business sold through reinsurance 4 34 Other 113 6 Total deferred tax liabilities $ 3,602 $ 2,453 Net deferred tax asset (liability) $ ( 2,605 ) $ ( 1,421 ) |
Reconciliation Of Unrecognized Tax Benefits | For the Years Ended December 31, 2019 2018 Balance as of beginning-of-year $ 12 $ 11 Increases for prior year tax positions 29 - Increases for current year tax positions - 1 Balance as of end-of-year $ 41 $ 12 |
DAC, VOBA, DSI and DFEL (Tables
DAC, VOBA, DSI and DFEL (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
DAC, VOBA, DSI and DFEL [Abstract] | |
DAC | For the Years Ended December 31, 2019 2018 2017 Balance as of beginning-of-year $ 9,509 $ 7,909 $ 8,269 Business acquired (sold) through reinsurance - ( 246 ) - Business recaptured through reinsurance 59 - - Deferrals 1,900 1,596 1,345 Amortization, net of interest: Amortization, excluding unlocking, net of interest ( 922 ) ( 913 ) ( 922 ) Unlocking ( 471 ) ( 115 ) 61 Adjustment related to realized (gains) losses ( 43 ) ( 42 ) ( 55 ) Adjustment related to unrealized (gains) losses ( 2,614 ) 1,320 ( 789 ) Balance as of end-of-year $ 7,418 $ 9,509 $ 7,909 |
VOBA | For the Years Ended December 31, 2019 2018 2017 Balance as of beginning-of-year $ 799 $ 499 $ 874 Business acquired (sold) through reinsurance - ( 11 ) - Business acquired - 30 - Deferrals 6 7 7 Amortization: Amortization, excluding unlocking ( 115 ) ( 127 ) ( 105 ) Unlocking 143 ( 60 ) ( 48 ) Accretion of interest (1) 45 48 52 Adjustment related to realized (gains) losses ( 1 ) ( 2 ) ( 1 ) Adjustment related to unrealized (gains) losses ( 550 ) 415 ( 280 ) Balance as of end-of-year $ 327 $ 799 $ 499 (1) The interest accrual rates utilized to calculate the accretion of interest ranged from 4.2 % to 6.9 %. |
Estimated Future Amortization Of VOBA | 2020 $ 72 2021 66 2022 67 2023 65 2024 61 |
DSI | For the Years Ended December 31, 2019 2018 2017 Balance as of beginning-of-year $ 298 $ 287 $ 293 Business acquired (sold) through reinsurance - ( 21 ) - Deferrals 26 48 29 Amortization, net of interest: Amortization, excluding unlocking, net of interest ( 28 ) ( 28 ) ( 30 ) Unlocking ( 3 ) - ( 4 ) Adjustment related to realized (gains) losses ( 2 ) ( 1 ) ( 2 ) Adjustment related to unrealized (gains) losses ( 10 ) 13 1 Balance as of end-of-year $ 281 $ 298 $ 287 |
DFEL | For the Years Ended December 31, 2019 2018 2017 Balance as of beginning-of-year $ 2,763 $ 1,429 $ 1,855 Business recaptured through reinsurance 5 - - Deferrals 1,092 874 753 Amortization, net of interest: Amortization, excluding unlocking, net of interest ( 533 ) ( 474 ) ( 383 ) Unlocking ( 426 ) ( 52 ) ( 3 ) Adjustment related to realized (gains) losses ( 11 ) ( 19 ) ( 18 ) Adjustment related to unrealized (gains) losses ( 2,244 ) 1,005 ( 775 ) Balance as of end-of-year $ 646 $ 2,763 $ 1,429 |
Reinsurance (Tables)
Reinsurance (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Reinsurance [Abstract] | |
Reinsurance amounts recorded on Consolidated Statements of Comprehensive Income (Loss) | For the Years Ended December 31, 2019 2018 2017 Direct insurance premiums and fee income $ 13,347 $ 11,882 $ 10,103 Reinsurance assumed 97 96 101 Reinsurance ceded ( 1,920 ) ( 1,883 ) ( 1,817 ) Total insurance premiums and fee income $ 11,524 $ 10,095 $ 8,387 Direct insurance benefits $ 9,482 $ 8,513 $ 6,669 Reinsurance recoveries netted against benefits ( 1,897 ) ( 2,369 ) ( 1,851 ) Total benefits $ 7,585 $ 6,144 $ 4,818 |
Goodwill and Specifically Ide_2
Goodwill and Specifically Identifiable Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Specifically Identifiable Intangible Assets [Abstract] | |
Changes In Carrying Amount Of Goodwill, By Reportable Segment | For the Year Ended December 31, 2019 Gross Accumulated Goodwill Impairment Net as of as of Acquisition Goodwill Beginning- Beginning- Accounting as of End- of-Year of-Year Adjustments Impairment of-Year Annuities $ 1,040 $ ( 600 ) $ - $ - $ 440 Retirement Plan Services 20 - - - 20 Life Insurance 2,186 ( 1,552 ) - - 634 Group Protection 688 - ( 4 ) - 684 Total goodwill $ 3,934 $ ( 2,152 ) $ ( 4 ) $ - $ 1,778 For the Year Ended December 31, 2018 Gross Accumulated Goodwill Impairment Net as of as of Acquisition Goodwill Beginning- Beginning- Accounting as of End- of-Year of-Year Adjustments Impairment of-Year Annuities $ 1,040 $ ( 600 ) $ - $ - $ 440 Retirement Plan Services 20 - - - 20 Life Insurance 2,186 ( 1,552 ) - - 634 Group Protection 274 - 414 - 688 Total goodwill $ 3,520 $ ( 2,152 ) $ 414 $ - $ 1,782 |
Schedule Of Intangible Assets By Reportable Segment | As of December 31, 2019 As of December 31, 2018 Gross Gross Carrying Accumulated Carrying Accumulated Amount Amortization Amount Amortization Retirement Plan Services: Mutual fund contract rights (1) $ 5 $ - $ 5 $ - Life Insurance: Sales force 100 55 100 51 Group Protection: VOCRA 576 25 576 5 VODA 31 2 31 - Insurance licenses (1) 3 - 3 - Total $ 715 $ 82 $ 715 $ 56 (1) No amortization recorded as the intangible asset has indefinite life . |
Future estimated amortization of specifically identifiable intangible assets | 2020 $ 37 2021 37 2022 37 2023 37 2024 37 Thereafter 440 |
Guaranteed Benefit Features (Ta
Guaranteed Benefit Features (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Guaranteed Benefit Features [Abstract] | |
Information On Guaranteed Death Benefit Features | As of December 31, 2019 (1) 2018 (1) Return of Net Deposits Total account value $ 101,601 $ 89,783 Net amount at risk (2) 71 1,002 Average attained age of contract holders 65 years 65 years Minimum Return Total account value $ 92 $ 88 Net amount at risk (2) 13 18 Average attained age of contract holders 77 years 77 years Guaranteed minimum return 5 % 5 % Anniversary Contract Value Total account value $ 25,763 $ 23,365 Net amount at risk (2) 384 2,007 Average attained age of contract holders 71 years 71 years (1) Our variable contracts with guarantees may offer more than one type of guarantee in each contract; therefore, the amounts listed are not mutually exclusive. (2) Represents the amount of death benefit in excess of the account balance that is subject to market fluctuations. |
Summary Of Guaranteed Death Benefit Liabilities | For the Years Ended December 31, 2019 2018 2017 Balance as of beginning-of-year $ 161 $ 100 $ 110 Changes in reserves ( 24 ) 77 8 Benefits paid ( 20 ) ( 16 ) ( 18 ) Balance as of end-of-year $ 117 $ 161 $ 100 |
Account Balances Of Variable Annuity Contracts With Guarantees Invested In Separate Accounts | As of December 31, 2019 2018 Asset Type Domestic equity $ 64,093 $ 54,060 International equity 19,852 18,359 Fixed income 41,405 37,942 Total $ 125,350 $ 110,361 Percent of total variable annuity separate account values 98 % 99 % |
Liability For Unpaid Claims (Ta
Liability For Unpaid Claims (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Liability For Unpaid Claims [Abstract] | |
Changes In Liability For Unpaid Claims | For the Years Ended December 31, 2019 2018 2017 Balance as of beginning-of-year $ 5,335 $ 2,222 $ 2,242 Reinsurance recoverable 143 57 69 Net balance as of beginning-of-year 5,192 2,165 2,173 Business acquired (1) - 2,842 - Incurred related to: Current year 3,193 2,531 1,346 Prior years: Interest 151 120 69 All other incurred (2) ( 308 ) ( 208 ) ( 76 ) Total incurred 3,036 2,443 1,339 Paid related to: Current year ( 1,518 ) ( 1,197 ) ( 798 ) Prior years ( 1,310 ) ( 1,061 ) ( 549 ) Total paid ( 2,828 ) ( 2,258 ) ( 1,347 ) Net balance as of end-of-year 5,400 5,192 2,165 Reinsurance recoverable 152 143 57 Balance as of end-of-year $ 5,552 $ 5,335 $ 2,222 (1) Represents acquired group life and disability reserves, net, as of May 1, 2018. See Note 3 for additional information. (2) All other incurred is primarily impacted by the level of claim resolutions in the period compared to that which is expected by the reserve assumption. A negative number implies a favorable result where claim resolutions were more favorable than assumed. Our claim resolution rate assumption used in determining reserves is our expectation of the resolution rate we will experience over the long-term life of the block of claims. It will vary from actual experience in any one period, both favorably and unfavorably . |
Short-Term and Long-Term Debt (
Short-Term and Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Short-Term and Long-Term Debt [Abstract] | |
Schedule of Debt | As of December 31, 2019 2018 Short-Term Debt Short-term debt (1) $ 609 $ 288 Long-Term Debt, Excluding Current Portion 9.76 % surplus note, due 2024 $ 50 $ 50 6.56 % surplus note, due 2028 500 500 LIBOR + 111 bps surplus note, due 2028 71 71 LIBOR + 226 bps surplus note, due 2028 613 600 6.03 % surplus note, due 2028 750 750 LIBOR + 200 bps surplus note, due 2035 30 30 LIBOR + 155 bps surplus note, due 2037 25 25 4.20 % surplus note, due 2037 50 50 LIBOR + 100 bps surplus note, due 2037 284 312 4.225 % surplus note, due 2037 28 - 4.50 % surplus note, due 2038 13 13 Total long-term debt $ 2,414 $ 2,401 (1) The short-term debt represents short-term notes payable to LNC. |
Future Principal Payments | 2020 $ - 2021 - 2022 - 2023 - 2024 50 Thereafter 2,364 Total $ 2,414 |
Credit facilities and letters of credit | As of December 31, 2019 Expiration Maximum LOCs Date Available Issued Credit Facilities Five-year revolving credit facility July 31, 2024 $ 2,250 $ 340 LOC facility (1) August 26, 2031 990 965 LOC facility (1) October 1, 2031 982 982 Total $ 4,222 $ 2,287 (1) Our wholly-owned subsidiaries entered into irrevocable LOC facility agreements with third-party lenders supporting inter-company reinsurance agreements . |
Contingencies and Commitments (
Contingencies and Commitments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Contingencies and Commitments [Abstract] | |
Finance Lease Expense | For the Year Ended December 31, 2019 Amortization of ROU assets (1) $ 67 Interest on lease liabilities (2) 13 Total $ 80 (1) Amortization of ROU assets is reported in commissions and other expenses on our Consolidated Statements of Comprehensive Income (Loss). (2) Interest on lease liabilities is reported in interest and debt expense on our Consolidated Statements of Comprehensive Income (Loss). |
Cash Flow Information Related To Leases | For the Year Ended December 31, 2019 Supplemental Cash Flow Information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 47 Financing cash flows from finance leases 96 Supplemental Non-cash Information ROU assets obtained in exchange for new lease obligations: Operating leases $ 78 |
Future Minimum Lease Payments | Operating Finance Leases Leases 2020 $ 44 $ 56 2021 40 66 2022 35 66 2023 32 90 2024 26 17 Thereafter 65 12 Total future minimum lease payments 242 307 Less: Amount representing interest 34 26 Present value of minimum lease payments $ 208 $ 281 |
Shares and Stockholder's Equi_2
Shares and Stockholder's Equity (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Shares and Stockholder's Equity [Abstract] | |
Components And Changes In Accumulated OCI | For the Years Ended December 31, 2019 2018 2017 Unrealized Gain (Loss) on AFS Securities Balance as of beginning-of-year $ 536 $ 3,283 $ 1,687 Cumulative effect from adoption of new accounting standards - 634 - Unrealized holding gains (losses) arising during the year 8,856 ( 5,995 ) 2,872 Change in foreign currency exchange rate adjustment 46 ( 107 ) 134 Change in DAC, VOBA, DSI, future contract benefits and other contract holder funds ( 2,460 ) 1,748 ( 703 ) Income tax benefit (expense) ( 1,370 ) 923 ( 745 ) Less: Reclassification adjustment for gains (losses) included in net income (loss) ( 26 ) ( 44 ) ( 40 ) Associated amortization of DAC, VOBA, DSI and DFEL ( 11 ) ( 19 ) ( 19 ) Income tax benefit (expense) 8 13 21 Balance as of end-of-year $ 5,637 $ 536 $ 3,283 Unrealized OTTI on AFS Securities Balance as of beginning-of-year $ 29 $ 39 $ 22 (Increases) attributable to: Cumulative effect from adoption of new accounting standards - 9 - Gross OTTI recognized in OCI during the year ( 14 ) - - Change in DAC, VOBA, DSI and DFEL 1 - - Income tax benefit (expense) 3 - - Decreases attributable to: Changes in fair value, sales, maturities or other settlements of AFS securities 30 ( 18 ) 34 Change in DAC, VOBA, DSI and DFEL ( 2 ) ( 5 ) ( 7 ) Income tax benefit (expense) ( 7 ) 4 ( 10 ) Balance as of end-of-year $ 40 $ 29 $ 39 Unrealized Gain (Loss) on Derivative Instruments Balance as of beginning-of-year $ 119 $ 27 $ 93 Cumulative effect from adoption of new accounting standard - 6 - Unrealized holding gains (losses) arising during the year 181 40 63 Change in foreign currency exchange rate adjustment ( 52 ) 111 ( 137 ) Change in DAC, VOBA, DSI and DFEL ( 5 ) ( 14 ) 1 Income tax benefit (expense) ( 26 ) ( 29 ) 26 Less: Reclassification adjustment for gains (losses) included in net income (loss) 47 31 31 Associated amortization of DAC, VOBA, DSI and DFEL ( 2 ) ( 3 ) ( 2 ) Income tax benefit (expense) ( 9 ) ( 6 ) ( 10 ) Balance as of end-of-year $ 181 $ 119 $ 27 Funded Status of Employee Benefit Plans Balance as of beginning-of-year $ ( 25 ) $ ( 22 ) $ ( 20 ) Cumulative effect from adoption of new accounting standard - ( 5 ) - Adjustment arising during the year 4 3 ( 4 ) Income tax benefit (expense) ( 1 ) ( 1 ) 2 Balance as of end-of-year $ ( 22 ) $ ( 25 ) $ ( 22 ) |
Schedule of Reclassifications Out Of AOCI | For the Years Ended December 31, 2019 2018 2017 Unrealized Gain (Loss) on AFS Securities Gross reclassification $ ( 26 ) $ ( 44 ) $ ( 40 ) Total realized gain (loss) Associated amortization of DAC, VOBA, DSI and DFEL ( 11 ) ( 19 ) ( 19 ) Total realized gain (loss) Reclassification before income Income (loss) from continuing tax benefit (expense) ( 37 ) ( 63 ) ( 59 ) operations before taxes Income tax benefit (expense) 8 13 21 Federal income tax expense (benefit) Reclassification, net of income tax $ ( 29 ) $ ( 50 ) $ ( 38 ) Net income (loss) Unrealized OTTI on AFS Securities Gross reclassification $ 4 $ 7 $ 5 Total realized gain (loss) Change in DAC, VOBA, DSI and DFEL - - ( 1 ) Total realized gain (loss) Reclassification before income Income (loss) from continuing tax benefit (expense) 4 7 4 operations before taxes Income tax benefit (expense) ( 1 ) ( 1 ) ( 1 ) Federal income tax expense (benefit) Reclassification, net of income tax $ 3 $ 6 $ 3 Net income (loss) Unrealized Gain (Loss) on Derivative Instruments Gross reclassifications: Interest rate contracts $ 3 $ 4 $ 4 Net investment income Foreign currency contracts 35 27 18 Net investment income Foreign currency contracts 9 - 9 Total realized gain (loss) Total gross reclassifications 47 31 31 Associated amortization of DAC, VOBA, DSI and DFEL ( 2 ) ( 3 ) ( 2 ) Commissions and other expenses Reclassifications before income Income (loss) from continuing tax benefit (expense) 45 28 29 operations before taxes Income tax benefit (expense) ( 9 ) ( 6 ) ( 10 ) Federal income tax expense (benefit) Reclassifications, net of income tax $ 36 $ 22 $ 19 Net income (loss) |
Commissions and Other Expenses
Commissions and Other Expenses (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commissions And Other Expenses [Abstract] | |
Details underlying commissions and other expenses | For the Years Ended December 31, 2019 2018 2017 Commissions $ 2,566 $ 2,271 $ 1,998 General and administrative expenses 2,152 1,910 1,715 Expenses associated with reserve financing and unrelated LOCs 52 64 57 DAC and VOBA deferrals and interest, net of amortization ( 586 ) ( 436 ) ( 390 ) Broker-dealer expenses 372 358 329 Specifically identifiable intangible asset amortization 26 9 4 Taxes, licenses and fees 353 322 254 Acquisition and integration costs related to mergers and acquisitions 130 85 - Total $ 5,065 $ 4,583 $ 3,967 |
Retirement and Deferred Compe_2
Retirement and Deferred Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Retirement and Deferred Compensation Plans [Abstract] | |
Benefit Plans' Assets And Obligations | As of or For the Years Ended December 31, 2019 2018 2019 2018 Other Postretirement Pension Plans Benefit Plans Fair value of plan assets $ 109 $ 107 $ 9 $ 8 Projected benefit obligation 115 112 10 10 Funded status $ ( 6 ) $ ( 5 ) $ ( 1 ) $ ( 2 ) Amounts Recognized on the Consolidated Balance Sheets Other assets $ - $ - $ - $ - Other liabilities ( 6 ) ( 5 ) ( 1 ) ( 2 ) Net amount recognized $ ( 6 ) $ ( 5 ) $ ( 1 ) $ ( 2 ) Weighted-Average Assumptions Benefit obligations: Weighted-average discount rate 3.50 % 4.50 % 3.50 % 4.50 % Net periodic benefit cost: Weighted-average discount rate 4.50 % 4.00 % 4.50 % 4.00 % Expected return on plan assets 4.50 % 4.50 % 6.50 % 6.50 % |
Fair Value Of Benefit Plan Assets | As of December 31, 2019 2018 Fixed maturity securities: Corporate bonds $ - $ 1 U.S. government bonds 83 87 Cash and invested cash 26 19 Other investments 9 8 Total $ 118 $ 115 |
Deferred Compensation Plans Liabilities And Investments | As of December 31, 2019 2018 Total liabilities (1) $ 579 $ 487 Investments dedicated to fund liabilities (2) 202 170 (1) Reported in other liabilities on our Consolidated Balance Sheets. (2) Reported in other assets on our Consolidated Balance Sheets. |
Stock-Based Incentive Compens_2
Stock-Based Incentive Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Stock-Based Incentive Compensation Plans [Abstract] | |
Compensation Expense By Award Type | For the Years Ended December 31, 2019 2018 2017 Stock options $ 8 $ 5 $ 9 Performance shares 16 14 12 SARs - ( 1 ) 2 RSUs 35 30 24 Total $ 59 $ 48 $ 47 Recognized tax benefit $ 12 $ 10 $ 16 |
Statutory Information and Res_2
Statutory Information and Restrictions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Statutory Information and Restrictions [Abstract] | |
Statutory Capital and Surplus | As of December 31, 2019 2018 U.S. capital and surplus $ 8,425 $ 8,330 For the Years Ended December 31, 2019 2018 2017 U.S. net gain (loss) from operations, after-tax $ 379 $ 686 $ 1,312 U.S. net income (loss) 359 1,013 1,452 U.S. dividends to LNC holding company 600 910 954 |
Effects On statutory Surplus Compared To NAIC Statutory Surplus | As of December 31, 2019 2018 State Prescribed Practices Calculation of reserves using the Indiana universal life method $ 24 $ 36 Conservative valuation rate on certain annuities ( 49 ) ( 55 ) Vermont Subsidiaries Permitted Practices (1) Lesser of LOC and XXX additional reserve as surplus 1,947 1,959 LLC notes and variable value surplus notes 1,648 1,634 Excess of loss reinsurance treaties 419 330 (1) These permitted practices are related to structures that continue to be allowed in accordance with the grandfathered structures under the provisions of AG48 or are compliant under AG48 requirements. |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value of Financial Instruments [Abstract] | |
Carrying And Estimated Fair Values Of Financial Instruments | As of December 31, 2019 As of December 31, 2018 Carrying Fair Carrying Fair Value Value Value Value Assets Fixed maturity AFS securities $ 103,773 $ 103,773 $ 92,787 $ 92,787 Trading securities 4,602 4,602 1,869 1,869 Equity securities 103 103 99 99 Mortgage loans on real estate 16,244 16,774 13,190 13,020 Derivative investments (1) 1,911 1,911 1,081 1,081 Other investments 2,554 2,554 1,951 1,951 Cash and invested cash 1,879 1,879 1,848 1,848 Reinsurance related embedded derivatives - - 188 188 Other assets: GLB direct embedded derivatives 450 450 123 123 GLB ceded embedded derivatives 60 60 72 72 Indexed annuity ceded embedded derivatives 927 927 902 902 Separate account assets 153,571 153,571 132,833 132,833 Liabilities Future contract benefits – indexed annuity and IUL contracts embedded derivatives ( 2,585 ) ( 2,585 ) ( 1,305 ) ( 1,305 ) Other contract holder funds: Remaining guaranteed interest and similar contracts ( 1,900 ) ( 1,900 ) ( 542 ) ( 542 ) Account values of certain investment contracts ( 38,606 ) ( 46,781 ) ( 34,500 ) ( 36,321 ) Short-term debt ( 609 ) ( 609 ) ( 288 ) ( 288 ) Long-term debt ( 2,414 ) ( 2,714 ) ( 2,401 ) ( 2,519 ) Reinsurance related embedded derivatives ( 375 ) ( 375 ) - - Other liabilities: Derivative liabilities (1) ( 238 ) ( 238 ) ( 226 ) ( 226 ) GLB ceded embedded derivatives ( 510 ) ( 510 ) ( 196 ) ( 196 ) Benefit Plans’ Assets (2) 118 118 115 115 (1) We have master netting agreements with each of our derivative counterparties, which allow for the netting of our derivative asset and liability positions by counterparty. (2) Included in the funded statuses of the benefit plans, which is reported in other liabilities on our Consolidated Balance Sheets. Refer to Note 17 for information regarding our benefit plans. |
Fair Value Of Assets And Liabilities On A Recurring Basis | As of December 31, 2019 Quoted Prices in Active Markets for Significant Significant Identical Observable Unobservable Total Assets Inputs Inputs Fair (Level 1) (Level 2) (Level 3) Value Assets Investments: Fixed maturity AFS securities: Corporate bonds $ - $ 80,801 $ 6,978 $ 87,779 U.S. government bonds 391 7 5 403 State and municipal bonds - 5,685 - 5,685 Foreign government bonds - 298 90 388 RMBS - 2,997 11 3,008 CMBS - 1,082 1 1,083 ABS - 4,615 268 4,883 Hybrid and redeemable preferred securities 77 389 78 544 Trading securities 50 3,886 666 4,602 Equity securities 25 48 30 103 Derivative investments (1) - 1,089 1,735 2,824 Cash and invested cash - 1,879 - 1,879 Other assets: GLB direct embedded derivatives - - 450 450 GLB ceded embedded derivatives - - 60 60 Indexed annuity ceded embedded derivatives - - 927 927 Separate account assets 644 152,916 - 153,560 Total assets $ 1,187 $ 255,692 $ 11,299 $ 268,178 Liabilities Future contract benefits – indexed annuity and IUL contracts embedded derivatives $ - $ - $ ( 2,585 ) $ ( 2,585 ) Reinsurance related embedded derivatives - ( 375 ) - ( 375 ) Other liabilities: Derivative liabilities (1) - ( 284 ) ( 867 ) ( 1,151 ) GLB ceded embedded derivatives - - ( 510 ) ( 510 ) Total liabilities $ - $ ( 659 ) $ ( 3,962 ) $ ( 4,621 ) Benefit Plans’ Assets $ - $ 118 $ - $ 118 As of December 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 $ - $ 73,897 $ 5,652 $ 79,549 U.S. government bonds 368 18 - 386 State and municipal bonds - 5,184 - 5,184 Foreign government bonds - 335 109 444 RMBS - 3,157 7 3,164 CMBS - 801 2 803 ABS - 2,544 134 2,678 Hybrid and redeemable preferred securities 66 438 75 579 Trading securities 43 1,759 67 1,869 Equity securities 16 58 25 99 Derivative investments (1) - 636 704 1,340 Cash and invested cash - 1,848 - 1,848 Reinsurance related embedded derivatives - 188 - 188 Other assets: GLB direct embedded derivatives - - 123 123 GLB ceded embedded derivatives - - 72 72 Indexed annuity ceded embedded derivatives - - 902 902 Separate account assets 665 132,135 - 132,800 Total assets $ 1,158 $ 222,998 $ 7,872 $ 232,028 Liabilities Future contract benefits – indexed annuity and IUL contracts embedded derivatives $ - $ - $ ( 1,305 ) $ ( 1,305 ) Other liabilities: Derivative liabilities (1) - ( 314 ) ( 171 ) ( 485 ) GLB ceded embedded derivatives - - ( 196 ) ( 196 ) Total liabilities $ - $ ( 314 ) $ ( 1,672 ) $ ( 1,986 ) Benefit Plans’ Assets $ - $ 115 $ - $ 115 (1) Derivative investment assets and liabilities are presented within the fair value hierarchy on a gross basis by derivative type and not on a master netting basis by counterparty . |
Fair Value Measured On A Recurring Basis Reconciliation | For the Year Ended December 31, 2019 Gains Issuances, Transfers Items (Losses) Sales, Into or Included in Maturities, Out Beginning in OCI Settlements, of Ending Fair Net and Calls, Level 3, Fair Value Income Other (1) Net Net (3) Value Investments: (5) Fixed maturity AFS securities: Corporate bonds $ 5,652 $ 3 $ 177 $ 1,195 $ ( 49 ) $ 6,978 U.S. government bonds - - - - 5 5 Foreign government bonds 109 - 6 ( 25 ) - 90 RMBS 7 - - 21 ( 17 ) 11 CMBS 2 1 - 5 ( 7 ) 1 ABS 134 - 1 619 ( 486 ) 268 Hybrid and redeemable preferred securities 75 - 3 - - 78 Trading securities 67 17 - 850 ( 268 ) 666 Equity securities 25 ( 12 ) - 17 - 30 Derivative investments 533 9 164 162 - 868 Other assets: (6) GLB direct embedded derivatives 123 327 - - - 450 GLB ceded embedded derivatives 72 ( 12 ) - - - 60 Indexed annuity ceded embedded derivatives 902 158 - ( 133 ) - 927 Future contract benefits – indexed annuity and IUL contracts embedded derivatives (6) ( 1,305 ) ( 900 ) - ( 380 ) - ( 2,585 ) Other liabilities – GLB ceded embedded derivatives (6) ( 196 ) ( 314 ) - - - ( 510 ) Total, net $ 6,200 $ ( 723 ) $ 351 $ 2,331 $ ( 822 ) $ 7,337 For the Year Ended December 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 (2) Net (3)(4) Value Investments: (5) Fixed maturity AFS securities: Corporate bonds $ 5,350 $ 10 $ ( 198 ) $ 542 $ ( 52 ) $ 5,652 U.S. government bonds 5 - - ( 5 ) - - Foreign government bonds 110 - ( 1 ) - - 109 RMBS 12 - - 7 ( 12 ) 7 CMBS 6 - - 35 ( 39 ) 2 ABS 117 - - 223 ( 206 ) 134 Hybrid and redeemable preferred securities 76 - ( 1 ) - - 75 Equity AFS securities 161 - - - ( 161 ) - Trading securities 49 ( 5 ) - 30 ( 7 ) 67 Equity securities - ( 1 ) - - 26 25 Derivative investments 30 168 ( 74 ) 409 - 533 Other assets: (6) GLB direct embedded derivatives 903 ( 780 ) - - - 123 GLB ceded embedded derivatives 51 21 - - - 72 Indexed annuity ceded embedded derivatives 11 ( 117 ) - 1,008 - 902 Future contract benefits – indexed annuity and IUL contracts embedded derivatives (6) ( 1,418 ) 198 - ( 85 ) - ( 1,305 ) Other liabilities – GLB ceded embedded derivatives (6) ( 954 ) 758 - - - ( 196 ) Total, net $ 4,509 $ 252 $ ( 274 ) $ 2,164 $ ( 451 ) $ 6,200 For the Year Ended December 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 (3) Value Investments: (5) Fixed maturity AFS securities: Corporate bonds $ 4,809 $ 17 $ 199 $ ( 45 ) $ 370 $ 5,350 U.S. government bonds - - - - 5 5 Foreign government bonds 111 - ( 1 ) - - 110 RMBS 3 - - 19 ( 10 ) 12 CMBS 7 - 1 54 ( 56 ) 6 ABS 101 - - 124 ( 108 ) 117 State and municipal bonds - ( 1 ) - - 1 - Hybrid and redeemable preferred securities 76 - 14 - ( 14 ) 76 Equity AFS securities 177 1 ( 3 ) ( 13 ) ( 1 ) 161 Trading securities 65 3 8 ( 26 ) ( 1 ) 49 Derivative investments ( 93 ) ( 27 ) 127 23 - 30 Other assets: (6) GLB direct embedded derivatives - 903 - - - 903 GLB ceded embedded derivatives 371 ( 320 ) - - - 51 Indexed annuity ceded embedded derivatives - - - 11 - 11 Future contract benefits – indexed annuity and IUL contracts embedded derivatives (6) ( 1,139 ) ( 400 ) - 121 - ( 1,418 ) Other liabilities: (6) GLB direct embedded derivatives ( 371 ) 371 - - - - GLB ceded embedded derivatives - ( 954 ) - - - ( 954 ) Total, net $ 4,117 $ ( 407 ) $ 345 $ 268 $ 186 $ 4,509 (1) The changes in fair value of the interest rate swaps are offset by an adjustment to derivative investments (see Note 6). (2) Issuances, sales, maturities, settlements, calls, net, includes financial instruments acquired in the Liberty Life transaction as follows: corporate bonds of $ 67 million and ABS of $ 17 million. (3) Transfers into or out of Level 3 for fixed maturity AFS and trading securities are reported at amortized cost as of the beginning-of-year. For fixed maturity AFS and trading securities, the difference between beginning-of-year amortized cost and beginning-of-year fair value was included in OCI and earnings, respectively, in the prior years. (4) Transfers into or out of Level 3 for FHLB stock between equity securities and other investments are reported at cost on our Consolidated Balance Sheets. (5) 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). (6) 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 Year Ended December 31, 2019 Issuances Sales Maturities Settlements Calls Total Investments: Fixed maturity AFS securities: Corporate bonds $ 1,502 $ ( 45 ) $ ( 78 ) $ ( 154 ) $ ( 30 ) $ 1,195 Foreign government bonds - - ( 25 ) - - ( 25 ) RMBS 21 - - - - 21 CMBS 7 - - ( 2 ) - 5 ABS 646 ( 8 ) - ( 19 ) - 619 Trading securities 872 - - ( 22 ) - 850 Equity securities 50 ( 33 ) - - - 17 Derivative investments 555 ( 61 ) ( 332 ) - - 162 Other assets – indexed annuity ceded embedded derivatives 56 - - ( 189 ) - ( 133 ) Future contract benefits – indexed annuity and IUL contracts embedded derivatives ( 591 ) - - 211 - ( 380 ) Total, net $ 3,118 $ ( 147 ) $ ( 435 ) $ ( 175 ) $ ( 30 ) $ 2,331 For the Year Ended December 31, 2018 Issuances Sales Maturities Settlements Calls Total Investments: Fixed maturity AFS securities: Corporate bonds $ 1,068 $ ( 171 ) $ ( 3 ) $ ( 275 ) $ ( 77 ) $ 542 U.S. government bonds - ( 5 ) - - - ( 5 ) RMBS 7 - - - - 7 CMBS 39 - - ( 4 ) - 35 ABS 240 ( 17 ) - - - 223 Trading securities 54 ( 24 ) - - - 30 Equity securities 1 ( 1 ) - - - - Derivative investments 365 465 ( 421 ) - - 409 Other assets – indexed annuity ceded embedded derivatives 1,030 - - ( 22 ) - 1,008 Future contract benefits – indexed annuity and IUL contracts embedded derivatives ( 284 ) - - 199 - ( 85 ) Total, net $ 2,520 $ 247 $ ( 424 ) $ ( 102 ) $ ( 77 ) $ 2,164 For the Year Ended December 31, 2017 Issuances Sales Maturities Settlements Calls Total Investments: Fixed maturity AFS securities: Corporate bonds $ 850 $ ( 448 ) $ ( 98 ) $ ( 205 ) $ ( 144 ) $ ( 45 ) RMBS 19 - - - - 19 CMBS 55 - - ( 1 ) - 54 ABS 124 - - - - 124 Equity AFS securities 18 ( 31 ) - - - ( 13 ) Trading securities 2 ( 27 ) - ( 1 ) - ( 26 ) Derivative investments 197 233 ( 407 ) - - 23 Other assets – indexed annuity ceded embedded derivatives 11 - - - - 11 Future contract benefits – indexed annuity and IUL contracts embedded derivatives ( 71 ) - - 192 - 121 Total, net $ 1,205 $ ( 273 ) $ ( 505 ) $ ( 15 ) $ ( 144 ) $ 268 |
Changes In Unrealized Gains (Losses) Within Level 3 Financial Instruments Carried At Fair Value And Still Held | For the Years Ended December 31, 2019 2018 2017 Derivative investments $ 168 $ 90 $ ( 266 ) Embedded derivatives: Indexed annuity and IUL contracts ( 97 ) ( 38 ) ( 14 ) Other assets – GLB direct and ceded 1,015 ( 75 ) 1,904 Other liabilities – GLB direct and ceded ( 1,015 ) 75 ( 1,904 ) Total, net (1) $ 71 $ 52 $ ( 280 ) (1) Included in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss) . |
Components Of The Transfers In And Out Of Level 3 | The following provides the components of the transfers into and out of Level 3 (in millions) as reported above: For the Year Ended December 31, 2019 Transfers Transfers Into Out of Level 3 Level 3 Total Investments: Fixed maturity AFS securities: Corporate bonds $ 173 $ ( 222 ) $ ( 49 ) U.S. government bonds 5 - 5 RMBS - ( 17 ) ( 17 ) CMBS - ( 7 ) ( 7 ) ABS 9 ( 495 ) ( 486 ) Trading securities 5 ( 273 ) ( 268 ) Total, net $ 192 $ ( 1,014 ) $ ( 822 ) For the Year Ended December 31, 2018 Transfers Transfers Into Out of Level 3 Level 3 Total Investments: Fixed maturity AFS securities: Corporate bonds $ 78 $ ( 130 ) $ ( 52 ) RMBS - ( 12 ) ( 12 ) CMBS 1 ( 40 ) ( 39 ) ABS - ( 206 ) ( 206 ) Equity AFS securities - ( 161 ) ( 161 ) Trading securities - ( 7 ) ( 7 ) Equity securities 26 - 26 Total, net $ 105 $ ( 556 ) $ ( 451 ) For the Year Ended December 31, 2017 Transfers Transfers Into Out of Level 3 Level 3 Total Investments: Fixed maturity AFS securities: Corporate bonds $ 458 $ ( 88 ) $ 370 U.S. government bonds 5 - 5 RMBS - ( 10 ) ( 10 ) CMBS 3 ( 59 ) ( 56 ) ABS 44 ( 152 ) ( 108 ) State and municipal bonds 2 ( 1 ) 1 Hybrid and redeemable preferred securities - ( 14 ) ( 14 ) Equity AFS securities - ( 1 ) ( 1 ) Trading securities 4 ( 5 ) ( 1 ) Total, net $ 516 $ ( 330 ) $ 186 |
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 $ 2,996 Discounted cash flow Liquidity/duration adjustment (1) 0.1 % - 6.4 % Foreign government bonds 52 Discounted cash flow Liquidity/duration adjustment (1) 2.1 % - 2.5 % ABS 22 Discounted cash flow Liquidity/duration adjustment (1) 3.0 % - 3.0 % Hybrid and redeemable preferred securities 4 Discounted cash flow Liquidity/duration adjustment (1) 1.4 % - 1.4 % Equity securities 21 Discounted cash flow Liquidity/duration adjustment (1) 4.5 % - 5.2 % Other assets: GLB direct and ceded embedded derivatives 510 Discounted cash flow Long-term lapse rate (2) 1 % - 30 % Utilization of guaranteed withdrawals (3) 85 % - 100 % Claims utilization factor (4) 60 % - 100 % Premiums utilization factor (4) 80 % - 115 % NPR (5) 0.01 % - 0.27 % Mortality rate (6) (8) Volatility (7) 1 % - 28 % Indexed annuity ceded embedded derivatives 927 Discounted cash flow Lapse rate (2) 1 % - 9 % Mortality rate (6) (8) Liabilities Future contract benefits – indexed annuity and IUL contracts embedded derivatives $ ( 2,585 ) Discounted cash flow Lapse rate (2) 1 % - 9 % Mortality rate (6) (8) Other liabilities – GLB ceded embedded derivatives ( 510 ) Discounted cash flow Long-term lapse rate (2) 1 % - 30 % Utilization of guaranteed withdrawals (3) 85 % - 100 % Claims utilization factor (4) 60 % - 100 % Premiums utilization factor (4) 80 % - 115 % NPR (5) 0.01 % - 0.27 % Mortality rate (6) (8) Volatility (7) 1 % - 28 % (1) The liquidity/duration adjustment input represents an estimated market participant composite of adjustments attributable to liquidity premiums, expected durations, structures and credit quality that would be applied to the market observable information of an investment. (2) The lapse rate input represents the estimated probability of a contract surrendering during a year, and thereby forgoing any future benefits. The range for indexed annuity and IUL contracts represents the lapse rates during the surrender charge period. (3) The utilization of guaranteed withdrawals input represents the estimated percentage of contract holders that utilize the guaranteed withdrawal feature. (4) The utilization factors are applied to the present value of claims or premiums, as appropriate, in the GLB reserve calculation to estimate the impact of inefficient withdrawal behavior, including taking less than or more than the maximum guaranteed withdrawal. (5) The NPR input represents the estimated additional credit spread that market participants would apply to the market observable discount rate when pricing a contract. (6) The mortality rate input represents the estimated probability of when an individual belonging to a particular group, categorized according to age or some other factor such as gender, will die. (7) The volatility input represents overall volatilities assumed for the underlying variable annuity funds, which include a mixture of equity and fixed-income assets. Fair value of the variable annuity GLB embedded derivatives would increase if higher volatilities were used for valuation. (8) The mortality rate is based on a combination of company and industry experience, adjusted for improvement factors. |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Information [Abstract] | |
Reconciliation Of Revenue From Segments To Consolidated | For the Years Ended December 31, 2019 2018 2017 Revenues Operating revenues: Annuities $ 4,240 $ 4,025 $ 4,034 Retirement Plan Services 1,186 1,164 1,152 Life Insurance 6,999 6,489 6,128 Group Protection 4,587 3,756 2,200 Other Operations 199 209 263 Excluded realized gain (loss), pre-tax ( 1,019 ) ( 285 ) ( 630 ) Amortization of deferred gain arising from reserve changes on business sold through reinsurance, pre-tax - - 1 Total revenues $ 16,192 $ 15,358 $ 13,148 |
Reconciliation Of Income (Loss) From Operations By Segment To Consolidated Net Income (Loss) | For the Years Ended December 31, 2019 2018 2017 Net Income (Loss) Income (loss) from operations: Annuities $ 987 $ 1,122 $ 1,072 Retirement Plan Services 162 160 142 Life Insurance 267 530 522 Group Protection 237 186 103 Other Operations ( 148 ) ( 130 ) ( 30 ) Excluded realized gain (loss), after-tax ( 804 ) ( 225 ) ( 409 ) Gain (loss) on early extinguishment of debt, after-tax - - ( 3 ) Net impact from the Tax Cuts and Jobs Act 16 ( 3 ) 1,526 Impairment of intangibles, after-tax - - ( 905 ) Acquisition and integration costs related to mergers and acquisitions, after-tax ( 103 ) ( 67 ) - Net income (loss) $ 614 $ 1,573 $ 2,018 |
Reconciliation of Net Investment Income From Segments to Consolidated | For the Years Ended December 31, 2019 2018 2017 Net Investment Income Annuities $ 1,070 $ 947 $ 982 Retirement Plan Services 917 892 893 Life Insurance 2,494 2,546 2,496 Group Protection 306 259 167 Other Operations 175 200 222 Total net investment income $ 4,962 $ 4,844 $ 4,760 |
Reconciliation of DAC VOBA Amortization From Segments to Consolidated | For the Years Ended December 31, 2019 2018 2017 Amortization of DAC and VOBA, Net of Interest Annuities $ 427 $ 347 $ 402 Retirement Plan Services 25 27 26 Life Insurance 757 701 455 Group Protection 111 92 79 Total amortization of DAC and VOBA, net of interest $ 1,320 $ 1,167 $ 962 |
Reconciliation of Federal Income Tax Expense (Benefit) From Segments to Consolidated | For the Years Ended December 31, 2019 2018 2017 Federal Income Tax Expense (Benefit) Annuities $ 148 $ 187 $ 198 Retirement Plan Services 21 28 50 Life Insurance 50 116 236 Group Protection 63 50 55 Other Operations ( 61 ) ( 48 ) ( 78 ) Excluded realized gain (loss) ( 215 ) ( 61 ) ( 220 ) Gain (loss) on early extinguishment of debt - - ( 2 ) Net impact from the Tax Cuts and Jobs Act ( 16 ) 3 ( 1,526 ) Acquisition and integration costs related to mergers and acquisitions ( 27 ) ( 18 ) - Total federal income tax expense (benefit) $ ( 37 ) $ 257 $ ( 1,287 ) |
Reconciliation of Assets From Segments to Consolidated Balance Sheet | As of December 31, 2019 2018 Assets Annuities $ 166,639 $ 145,462 Retirement Plan Services 40,190 35,742 Life Insurance 93,327 82,153 Group Protection 9,468 8,495 Other Operations 26,392 27,293 Total assets $ 336,016 $ 299,145 |
Supplemental Disclosures of C_2
Supplemental Disclosures of Cash Flow Data (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Supplemental Disclosures of Cash Flow Data [Abstract] | |
Summary of supplemental cash flow data | For the Years Ended December 31, 2019 2018 2017 Interest paid $ 152 $ 154 $ 123 Income taxes paid (received) 245 192 215 Significant non-cash investing and financing transactions: Reduction of other assets in connection with the expiration of an affiliate repurchase agreement ( 150 ) - - Acquisition of note receivable from affiliate 392 31 74 Investments received in financing transactions - 263 - Exchange of surplus note for promissory note with affiliate: Carrying value of asset 40 58 109 Carrying value of liability ( 40 ) ( 58 ) ( 109 ) Net asset (liability) from exchange $ - $ - $ - |
Quarterly Results of Operatio_2
Quarterly Results of Operations (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Results of Operations [Abstract] | |
Quarterly Results Of Operations | For the Three Months Ended March 31, June 30, September 30, December 31, 2019 Total revenues $ 3,764 $ 3,928 $ 4,227 $ 4,273 Total expenses 3,646 3,686 4,526 3,757 Net income (loss) 133 222 ( 201 ) 460 2018 Total revenues $ 3,404 $ 3,852 $ 4,039 $ 4,063 Total expenses 2,921 3,357 3,619 3,631 Net income (loss) 407 420 378 368 |
Transactions With Affiliates (T
Transactions With Affiliates (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Transactions With Affiliates [Abstract] | |
Schedule Of Transactions With Affiliates | As of December 31, 2019 2018 Assets with affiliates: Inter-company notes $ 1,557 $ 1,512 Fixed maturity AFS securities Ceded reinsurance contracts ( 115 ) ( 188 ) Deferred acquisition costs and value of business acquired Accrued inter-company interest receivable 6 11 Accrued investment income Ceded reinsurance contracts 2,473 2,574 Reinsurance recoverables Ceded reinsurance contracts - 191 Reinsurance related embedded derivatives Ceded reinsurance contracts 228 235 Other assets Cash management agreement 1,227 112 Other assets Service agreement receivable 6 5 Other assets Liabilities with affiliates: Assumed reinsurance contracts 26 29 Future contract benefits Assumed reinsurance contracts 390 400 Other contract holder funds Ceded reinsurance contracts ( 38 ) ( 46 ) Other contract holder funds Inter-company short-term debt 609 288 Short-term debt Inter-company long-term debt 2,414 2,401 Long-term debt Ceded reinsurance contracts 46 - Reinsurance related embedded derivatives Ceded reinsurance contracts 3,757 3,120 Funds withheld reinsurance liabilities Ceded reinsurance contracts 497 325 Other liabilities Accrued inter-company interest payable 5 13 Other liabilities Service agreement payable 22 56 Other liabilities The following summarizes transactions with affiliates (in millions) and the associated line item on our Consolidated Statements of Comprehensive Income (Loss): For the Years Ended December 31, 2019 2018 2017 Revenues with affiliates: Premiums received on assumed (paid on ceded) $ reinsurance contracts ( 407 ) $ ( 404 ) $ ( 393 ) Insurance premiums Fees for management of general account ( 133 ) ( 106 ) ( 100 ) Net investment income Net investment income on ceded funds withheld treaties ( 139 ) ( 123 ) ( 84 ) Net investment income Net investment income on inter-company notes 53 49 42 Net investment income Realized gains (losses) on ceded reinsurance contracts: GLB reserves embedded derivatives ( 305 ) 709 ( 1,055 ) Realized gain (loss) Other gains (losses) ( 301 ) 237 ( 150 ) Realized gain (loss) Reinsurance related settlements 472 ( 1,189 ) 951 Realized gain (loss) Amortization of deferred gain (loss) on reinsurance contracts ( 4 ) ( 5 ) ( 5 ) Amortization of deferred gain on business sold through reinsurance Benefits and expenses with affiliates: Interest credited on assumed reinsurance contracts 60 57 67 Interest credited Reinsurance (recoveries) benefits on ceded reinsurance ( 254 ) ( 610 ) ( 299 ) Benefits Ceded reinsurance contracts ( 19 ) ( 8 ) ( 12 ) Commissions and other expenses Service agreement payments 15 3 3 Commissions and other expenses Interest expense on inter-company debt 130 126 120 Interest and debt expense |
Nature of Operations, Basis o_3
Nature of Operations, Basis of Presentation and Summary of Significant Accounting Policies (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($)item | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Product Information [Line Items] | |||
Number of wholly owned subsidiaries | 2 | ||
Period In Which Loans No Longer Accrue Interest In Days | 90 days | ||
Estimated Contract Life UL Policies (In Years) | 40 years | ||
Estimated Contract Life VUL Policies (In Years) | 40 years | ||
Front End Load Annuity Products Assumed Life (In Years) | 25 years | ||
Number Of Scenarios Used Per Policy To Value A Block Of Guarantees | 100 | ||
Total Scenarios To Value GLB liability | 49,000,000 | ||
Participating Policies as a Percentage of the Face Amount of the Insurance In Force | 1.00% | 1.00% | |
Dividend Expenses | $ | $ 51 | $ 56 | $ 57 |
Sales Force [Member] | |||
Product Information [Line Items] | |||
Useful life | 25 years | ||
VOCRA [Member] | |||
Product Information [Line Items] | |||
Usefule life of acquired intangibles | 20 years | ||
VODA [Member] | |||
Product Information [Line Items] | |||
Usefule life of acquired intangibles | 13 years | ||
Commercial [Member] | |||
Product Information [Line Items] | |||
Loans Reported As Delinquent In Days | 60 days | ||
Number of missed payments to qualify as delinqent | 2 | ||
Loan-to-value ratio indicating principal is greater than collateral | 100.00% | ||
Debt-service coverage ratio indicating property income not covering debt payments | 1 | ||
Residential [Member] | |||
Product Information [Line Items] | |||
Loans Reported As Delinquent In Days | 90 days | ||
Number of missed payments to qualify as delinqent | 3 | ||
Period In Which Loans No Longer Accrue Interest In Days | 90 days | ||
Lincoln Life & Annuity Company of New York [Member] | |||
Product Information [Line Items] | |||
Ownership percentage | 100.00% | ||
Lincoln Life Assurance Company of Boston ("LLACB") [Member] | |||
Product Information [Line Items] | |||
Ownership percentage | 100.00% | ||
Maximum [Member] | |||
Product Information [Line Items] | |||
Estimated Contract Life Fixed and Variable Deferred Annuities (In Years) | 30 years | ||
Traditional Contract Acquisition Cost Amortization Period (In Years) | 30 | ||
Minimum [Member] | |||
Product Information [Line Items] | |||
Estimated Contract Life Fixed and Variable Deferred Annuities (In Years) | 15 years | ||
Life Insurance Segment [Member] | Maximum [Member] | |||
Product Information [Line Items] | |||
Investment Yield Assumptions for Traditional Direct Individual Life Reserves | 7.75% | ||
Life Insurance Segment [Member] | Minimum [Member] | |||
Product Information [Line Items] | |||
Investment Yield Assumptions for Traditional Direct Individual Life Reserves | 2.25% | ||
Annuities Segment [Member] | Maximum [Member] | |||
Product Information [Line Items] | |||
Investment Yield Assumptions for Immediate and Deferred Paid-Up Annuities | 12.75% | ||
Annuities Segment [Member] | Minimum [Member] | |||
Product Information [Line Items] | |||
Investment Yield Assumptions for Immediate and Deferred Paid-Up Annuities | 1.25% | ||
Reinsurance Transactions, 2012 to 2014 [Member] | |||
Product Information [Line Items] | |||
No. of Years in Which Deferred Gain From Reinsurance Transaction is Recognized as Income | 30 years | ||
Reinsurance Transactions, Athene [Member] | |||
Product Information [Line Items] | |||
No. of Years in Which Deferred Gain From Reinsurance Transaction is Recognized as Income | 20 years | ||
Reinsurance Transactions, 2012 to 2013 [Member] | |||
Product Information [Line Items] | |||
No. of Years in Which Deferred Gain From Reinsurance Transaction is Recognized as Income | 30 years | ||
Reinsurance Transactions, First Penn-Pacific Life Insurance [Member] | |||
Product Information [Line Items] | |||
No. of Years in Which Deferred Gain From Reinsurance Transaction is Recognized as Income | 15 years |
New Accounting Standards (Narra
New Accounting Standards (Narrative) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease ROU asset | $ 202 | ||
Operating lease liability | $ 208 | ||
Accounting Standards Update 2016-02 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease ROU asset | $ 171 | ||
Operating lease liability | $ 176 | ||
Accounting Standards Update 2019-05 [Member] | Scenario, Forecast [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative effect of adoption | $ 14 |
Acquisition (Narrative) (Detail
Acquisition (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 8 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2019 | Apr. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Business Acquisition [Line Items] | |||||||||||||
Revenues | $ 4,273 | $ 4,227 | $ 3,928 | $ 3,764 | $ 4,063 | $ 4,039 | $ 3,852 | $ 3,404 | $ 16,192 | $ 15,358 | $ 13,148 | ||
Net income (loss) | $ 460 | $ (201) | $ 222 | $ 133 | $ 368 | $ 378 | $ 420 | $ 407 | $ 614 | 1,573 | $ 2,018 | ||
Liberty Transaction [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Acquisition agreement date | May 1, 2018 | ||||||||||||
Capital stock acquired, percent | 100.00% | 100.00% | |||||||||||
Acquisition related costs | $ 85 | ||||||||||||
Provisional assets | $ (5) | ||||||||||||
Provisional liabilities | 23 | ||||||||||||
Provisional goodwill | $ 28 | ||||||||||||
Revenues | $ 1,500 | ||||||||||||
Net income (loss) | $ 36 |
Acquisition (Schedule Of Fair V
Acquisition (Schedule Of Fair Value Of Net Assets Acquired) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | ||
Goodwill | $ 1,778 | $ 1,782 |
Liberty Transaction [Member] | ||
Business Acquisition [Line Items] | ||
Investments | 2,493 | |
Mortgage loans on real estate | 658 | |
Cash and invested cash | 107 | |
Reinsurance recoverables | 76 | |
Premiums and fees receivable | 83 | |
Accrued investment income | 24 | |
Other intangible assets acquired | 640 | |
Other assets acquired | 142 | |
Separate account assets | 99 | |
Total assets acquired | 4,322 | |
Future contract benefits | 2,930 | |
Other contract holder funds | 46 | |
Other liabilities acquired | 140 | |
Separate account liabilities | 99 | |
Total liabilities assumed | 3,215 | |
Net identifiable assets acquired | 1,107 | |
Goodwill | 410 | |
Net assets acquired | $ 1,517 |
Acquisition (Schedule Of Pro Fo
Acquisition (Schedule Of Pro Forma Information) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Acquisition [Abstract] | ||
Revenue | $ 16,097 | $ 15,080 |
Net income | $ 1,642 | $ 2,034 |
Variable Interest Entities (Nar
Variable Interest Entities (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Variable Interest Entity [Line Items] | ||
Long-Term Senior Note Issued In Exchange For Corporate Bond Afs Security | $ 275 | |
Carrying Amounts of our Investments in LPs and LLCs, As Recognized In Other Investments on our Consolidated Balance Sheets | 2,565 | $ 1,962 |
Surplus notes | 0 | |
Maximum exposure to loss related to unconsolidated VIE's | 0 | |
Limited Partnerships and Limited Liability Companies [Member] | ||
Variable Interest Entity [Line Items] | ||
Carrying Amounts of our Investments in LPs and LLCs, As Recognized In Other Investments on our Consolidated Balance Sheets | 1,900 | 1,700 |
Carrying Amount Of Investments In Qualified Affordable Housing Projects | 13 | 20 |
Income Tax Credits And Other Tax Benefits From Qualified Affordable Housing Projects | $ 2 | $ 1 |
Investments (Narrative) (Detail
Investments (Narrative) (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($)itemsecurity | Dec. 31, 2018USD ($)securityitem | Dec. 31, 2017USD ($) | |
Investments [Line Items] | |||
Decrease in gross AFS securities unrealized losses | $ (2,100) | ||
Unrealized gain (loss), trading securities | $ (225) | $ (55) | $ 8 |
Number of partnerships in alternative investment portfolio | security | 256 | 234 | |
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 | $ 25 | ||
Securities that have been re-pledged | 25 | ||
Investment commitments | 2,000 | ||
Investment commitments for limited partnerships | 1,000 | ||
Investment commitments for mortgage loans on real estate | 544 | ||
Investment commitments for private placements | $ 407 | ||
Commercial [Member] | |||
Investments [Line Items] | |||
Number of impaired loans | security | 1 | 0 | |
Commercial [Member] | Maximum [Member] | |||
Investments [Line Items] | |||
Impaired financing receivable, carrying amount | $ 1 | ||
Residential [Member] | |||
Investments [Line Items] | |||
Number of loans past due | security | 38 | 0 | |
Number of impaired loans | item | 4 | 0 | |
Impaired financing receivable, allowance | $ 2 | ||
Impaired financing receivable, carrying amount | 1 | ||
Residential [Member] | Maximum [Member] | |||
Investments [Line Items] | |||
Impaired financing receivable, allowance | $ 1 | ||
Federal Home Loan Mortgage Corporation [Member] | Investments [Member] | |||
Investments [Line Items] | |||
Fair value | $ 1,300 | $ 1,400 | |
Concentration risk, percentage | 1.00% | 1.00% | |
Fannie Mae [Member] | Investments [Member] | |||
Investments [Line Items] | |||
Fair value | $ 1,000 | $ 1,200 | |
Concentration risk, percentage | 1.00% | 1.00% | |
Financial Service [Member] | Investments [Member] | |||
Investments [Line Items] | |||
Fair value | $ 18,200 | $ 16,000 | |
Concentration risk, percentage | 14.00% | 14.00% | |
Consumer Non-Cyclical Industry [Member] | Investments [Member] | |||
Investments [Line Items] | |||
Fair value | $ 15,400 | $ 14,300 | |
Concentration risk, percentage | 12.00% | 13.00% | |
Mortgage Loans On Real Estate [Member] | Geographic Concentration Risk [Member] | Commercial [Member] | California [Member] | |||
Investments [Line Items] | |||
Concentration risk, percentage | 24.00% | 23.00% | |
Mortgage Loans On Real Estate [Member] | Geographic Concentration Risk [Member] | Commercial [Member] | Texas [Member] | |||
Investments [Line Items] | |||
Concentration risk, percentage | 11.00% | 12.00% | |
Mortgage Loans On Real Estate [Member] | Geographic Concentration Risk [Member] | Residential [Member] | California [Member] | |||
Investments [Line Items] | |||
Concentration risk, percentage | 34.00% | 34.00% | |
Mortgage Loans On Real Estate [Member] | Geographic Concentration Risk [Member] | Residential [Member] | Florida [Member] | |||
Investments [Line Items] | |||
Concentration risk, percentage | 20.00% | 19.00% | |
Corporate Bonds [Member] | |||
Investments [Line Items] | |||
Percentage of fair value rated as investment grade | 96.00% | ||
Amortized cost of portfolio rated below investment grade | $ 3,100 | $ 3,100 | |
Fair value of portfolio rated below investment grade | $ 3,100 | $ 2,900 | |
MBS [Member] | |||
Investments [Line Items] | |||
Severity of second lien loans | 100.00% | ||
Severity of first lien loans | 30.00% |
Investments (Reconciliation Of
Investments (Reconciliation Of Available-For-Sale Securities From Cost Basis To Fair Value) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | |||
Amortized cost | $ 93,307 | $ 91,219 | |
Gross unrealized gains | 10,633 | 3,851 | |
Gross unrealized losses | 226 | 2,326 | |
OTTI | [1] | (59) | (43) |
Fair value | 103,773 | 92,787 | |
Fixed Maturity Securities [Member] | |||
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | |||
Amortized cost | 93,307 | ||
Fair value | 103,773 | ||
Corporate Bonds [Member] | Fixed Maturity Securities [Member] | |||
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | |||
Amortized cost | 78,875 | 78,837 | |
Gross unrealized gains | 9,071 | 2,871 | |
Gross unrealized losses | 172 | 2,167 | |
OTTI | [1] | (5) | (8) |
Fair value | 87,779 | 79,549 | |
ABS [Member] | Fixed Maturity Securities [Member] | |||
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | |||
Amortized cost | 4,803 | 2,644 | |
Gross unrealized gains | 62 | 45 | |
Gross unrealized losses | 17 | 30 | |
OTTI | [1] | (35) | (19) |
Fair value | 4,883 | 2,678 | |
U.S. Government Bonds [Member] | Fixed Maturity Securities [Member] | |||
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | |||
Amortized cost | 355 | 361 | |
Gross unrealized gains | 48 | 27 | |
Gross unrealized losses | 2 | ||
Fair value | 403 | 386 | |
Foreign Government Bonds [Member] | Fixed Maturity Securities [Member] | |||
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | |||
Amortized cost | 326 | 402 | |
Gross unrealized gains | 62 | 42 | |
Fair value | 388 | 444 | |
RMBS [Member] | Fixed Maturity Securities [Member] | |||
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | |||
Amortized cost | 2,820 | 3,099 | |
Gross unrealized gains | 179 | 113 | |
Gross unrealized losses | 9 | 61 | |
OTTI | [1] | (18) | (13) |
Fair value | 3,008 | 3,164 | |
CMBS [Member] | Fixed Maturity Securities [Member] | |||
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | |||
Amortized cost | 1,038 | 810 | |
Gross unrealized gains | 45 | 6 | |
Gross unrealized losses | 1 | 16 | |
OTTI | [1] | (1) | (3) |
Fair value | 1,083 | 803 | |
State And Municipal Bonds [Member] | Fixed Maturity Securities [Member] | |||
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | |||
Amortized cost | 4,605 | 4,498 | |
Gross unrealized gains | 1,087 | 703 | |
Gross unrealized losses | 7 | 17 | |
Fair value | 5,685 | 5,184 | |
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 | 485 | 568 | |
Gross unrealized gains | 79 | 44 | |
Gross unrealized losses | 20 | 33 | |
Fair value | $ 544 | $ 579 | |
[1] | Includes unrealized (gains) and losses on credit-impaired securities related to changes in the fair value of such securities subsequent to the impairment measurement date. |
Investments (Available-For-Sale
Investments (Available-For-Sale Securities By Contractual Maturities) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Available-for-sale Securities, Debt Maturities, Amortized Cost | ||
Amortized cost | $ 93,307 | $ 91,219 |
Available-for-sale Securities, Debt Maturities, Fair Value | ||
Fair Value | 103,773 | $ 92,787 |
Fixed Maturity Securities [Member] | ||
Available-for-sale Securities, Debt Maturities, Amortized Cost | ||
Amortized cost | 93,307 | |
Available-for-sale Securities, Debt Maturities, Fair Value | ||
Fair Value | 103,773 | |
Fixed Maturity AFS Securities Excluding Structured Securities [Member] | Fixed Maturity Securities [Member] | ||
Available-for-sale Securities, Debt Maturities, Amortized Cost | ||
Due in one year or less | 2,714 | |
Due after one year through five years | 15,022 | |
Due after five years through ten years | 17,440 | |
Due after ten years | 49,470 | |
Amortized cost | 84,646 | |
Available-for-sale Securities, Debt Maturities, Fair Value | ||
Due in one year or less | 2,699 | |
Due after one year through five years | 15,578 | |
Due after five years through ten years | 18,854 | |
Due after ten years | 57,668 | |
Fair Value | 94,799 | |
Structured Securities [Member] | Fixed Maturity Securities [Member] | ||
Available-for-sale Securities, Debt Maturities, Amortized Cost | ||
Amortized cost | 8,661 | |
Available-for-sale Securities, Debt Maturities, Fair Value | ||
Fair Value | $ 8,974 |
Investments (Fair Value And Gro
Investments (Fair Value And Gross Unrealized Losses In A Continuous Unrealized Loss Position) (Details) $ in Millions | Dec. 31, 2019USD ($)security | Dec. 31, 2018USD ($)security |
Schedule of Available-for-sale Securities [Line Items] | ||
Total number of AFS securities in an unrealized loss position | security | 882 | 3,360 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ||
Less Than or Equal to Twelve Months | $ 5,482 | $ 33,630 |
Greater Than Twelve Months | 1,820 | 8,386 |
Fair Value - Total | 7,302 | 42,016 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ||
Less Than or Equal to Twelve Months | 70 | 1,521 |
Greater Than Twelve Months | 159 | 818 |
Gross Unrealized Losses - Total | 229 | 2,339 |
Corporate Bonds [Member] | Fixed Maturity Securities [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ||
Less Than or Equal to Twelve Months | 2,827 | 30,947 |
Greater Than Twelve Months | 1,381 | 7,023 |
Fair Value - Total | 4,208 | 37,970 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ||
Less Than or Equal to Twelve Months | 44 | 1,464 |
Greater Than Twelve Months | 131 | 704 |
Gross Unrealized Losses - Total | 175 | 2,168 |
ABS [Member] | Fixed Maturity Securities [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ||
Less Than or Equal to Twelve Months | 1,791 | 1,237 |
Greater Than Twelve Months | 300 | 239 |
Fair Value - Total | 2,091 | 1,476 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ||
Less Than or Equal to Twelve Months | 8 | 23 |
Greater Than Twelve Months | 9 | 16 |
Gross Unrealized Losses - Total | 17 | 39 |
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 | 70 | |
Greater Than Twelve Months | 23 | |
Fair Value - Total | 93 | |
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 | |
Gross Unrealized Losses - Total | 2 | |
RMBS [Member] | Fixed Maturity Securities [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ||
Less Than or Equal to Twelve Months | 471 | 436 |
Greater Than Twelve Months | 15 | 796 |
Fair Value - Total | 486 | 1,232 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ||
Less Than or Equal to Twelve Months | 9 | 9 |
Greater Than Twelve Months | 55 | |
Gross Unrealized Losses - Total | 9 | 64 |
CMBS [Member] | Fixed Maturity Securities [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ||
Less Than or Equal to Twelve Months | 48 | 470 |
Greater Than Twelve Months | 4 | 82 |
Fair Value - Total | 52 | 552 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ||
Less Than or Equal to Twelve Months | 1 | 11 |
Greater Than Twelve Months | 5 | |
Gross Unrealized Losses - Total | 1 | 16 |
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 | 316 | 376 |
Greater Than Twelve Months | 18 | 92 |
Fair Value - Total | 334 | 468 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ||
Less Than or Equal to Twelve Months | 7 | 7 |
Greater Than Twelve Months | 10 | |
Gross Unrealized Losses - Total | 7 | 17 |
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 | 29 | 94 |
Greater Than Twelve Months | 102 | 131 |
Fair Value - Total | 131 | 225 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ||
Less Than or Equal to Twelve Months | 1 | 6 |
Greater Than Twelve Months | 19 | 27 |
Gross Unrealized Losses - Total | $ 20 | $ 33 |
Investments (Schedule Of Availa
Investments (Schedule Of Available-For-Sale Securities Whose Value Is Below Amortized Cost) (Details) $ in Millions | Dec. 31, 2019USD ($)security | Dec. 31, 2018USD ($)security | |
Schedule of Available-for-sale Securities [Line Items] | |||
Fair Value - Nine months or greater, but less than twelve months | $ 5,482 | $ 33,630 | |
Fair Value - Twelve months or greater | 1,820 | 8,386 | |
Fair Value - Total | 7,302 | 42,016 | |
Losses - Nine months or greater, but less than twelve months | 70 | 1,521 | |
Losses - Twelve months or greater | 159 | 818 | |
Gross Unrealized Losses - Total | $ 229 | $ 2,339 | |
Number of Securities - Total | security | 882 | 3,360 | |
Fair Value Decline, Greater Than 20% [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Fair Value - Less than six months | $ 15 | $ 389 | |
Fair Value - Six months or greater, but less than nine months | 10 | 96 | |
Fair Value - Nine months or greater, but less than twelve months | 11 | ||
Fair Value - Twelve months or greater | 130 | 138 | |
Fair Value - Total | 155 | 634 | |
Losses - Less than six months | 5 | 122 | |
Losses - Six months or greater, but less than nine months | 3 | 49 | |
Losses - Nine months or greater, but less than twelve months | 8 | ||
Losses - Twelve months or greater | 74 | 70 | |
Gross Unrealized Losses - Total | $ 82 | 249 | |
OTTI - Less than six months | 1 | ||
OTTI - Twelve months or greater | 8 | ||
OTTI - Total | $ 9 | ||
Number of Securities - Less than six months | security | [1] | 7 | 44 |
Number of Securities - Six months or greater, but less than nine months | security | [1] | 4 | 11 |
Number of Securities - Nine months or greater, but less than twelve months | security | [1] | 2 | |
Number of Securities - Twelve months or greater | security | [1] | 31 | 32 |
Number of Securities - Total | security | [1] | 42 | 89 |
[1] | We may reflect a security in more than one aging category based on various purchase dates. |
Investments (Schedule Of Change
Investments (Schedule Of Changes in Amount Of Credit Losses Of OTTI Recognized In Net Income (Loss)) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Investments [Abstract] | |||
Balance as of beginning-of-period | $ 337 | $ 358 | $ 411 |
Increases attributable to: | |||
Credit losses on securities for which an OTTI was not previously recognized | 13 | 5 | 13 |
Credit losses on securities for which an OTTI was previously recognized | 2 | 2 | 7 |
Decreases attributable to: | |||
Securities sold, paid down or matured | (148) | (28) | (73) |
Balance as of end-of-period | $ 204 | $ 337 | $ 358 |
Investments (Fair Value of Trad
Investments (Fair Value of Trading Securities) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Trading securities | $ 4,602 | $ 1,869 |
Corporate Bonds [Member] | Fixed Maturity Securities [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Trading securities | 2,877 | 1,559 |
U.S. Government Bonds [Member] | Fixed Maturity Securities [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Trading securities | 45 | 43 |
State And Municipal Bonds [Member] | Fixed Maturity Securities [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Trading securities | 16 | 16 |
Foreign Government Bonds [Member] | Fixed Maturity Securities [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Trading securities | 45 | 23 |
RMBS [Member] | Fixed Maturity Securities [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Trading securities | 169 | 78 |
CMBS [Member] | Fixed Maturity Securities [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Trading securities | 163 | 7 |
ABS [Member] | Fixed Maturity Securities [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Trading securities | 1,238 | 121 |
Hybrid And Redeemable Preferred Securities [Member] | Fixed Maturity Securities [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Trading securities | $ 49 | $ 22 |
Investments (Composition Of Cur
Investments (Composition Of Current And Past Due Mortgage Loans On Real Estate) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Mortgage Loans On Real Estate Aging [Abstract] | ||||
Current | $ 16,184 | $ 13,189 | ||
30 to 59 days past due | 30 | 9 | ||
60 to 89 days past due | 10 | 1 | ||
Greater than 90 days past due | 16 | |||
Valuation allowance | (2) | $ (3) | $ (2) | |
Unamortized premium (discount) | 6 | (9) | ||
Total carrying value | 16,244 | 13,190 | ||
Commercial [Member] | ||||
Mortgage Loans On Real Estate Aging [Abstract] | ||||
Current | 15,525 | 12,959 | ||
30 to 59 days past due | 3 | |||
Unamortized premium (discount) | (17) | (17) | ||
Total carrying value | 15,511 | 12,942 | ||
Residential [Member] | ||||
Mortgage Loans On Real Estate Aging [Abstract] | ||||
Current | 659 | 230 | ||
30 to 59 days past due | 27 | 9 | ||
60 to 89 days past due | 10 | 1 | ||
Greater than 90 days past due | 16 | |||
Valuation allowance | (2) | |||
Unamortized premium (discount) | 23 | 8 | ||
Total carrying value | $ 733 | $ 248 |
Investments (Changes In The Val
Investments (Changes In The Valuation Allowance Of Impaired Mortgage Loans On Real Estate) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Allowance for Losses | |||
Balance as of beginning-of-period | $ 3 | $ 2 | |
Additions | 1 | ||
Charge-offs, net of recoveries | $ (3) | ||
Balance as of end-of-period | 2 | $ 3 | |
Residential [Member] | |||
Allowance for Losses | |||
Balance as of end-of-period | $ 2 |
Investments (Schedule Of Averag
Investments (Schedule Of Average Carrying Value Of Impaired Mortgage Loans On Real Estate) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Information about impaired mortgage loans on real estate | ||
Average carrying value for impaired commercial mortgage loans on real estate | $ 5 | $ 6 |
Interest income recognized on impaired commercial mortgage loans on real estate | 1 | |
Interest income collected on impaired commercial mortgage loans on real estate | $ 1 |
Investments (Credit Quality Ind
Investments (Credit Quality Indicators For Commercial Mortgage Loans) (Details) - Commercial [Member] - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Mortgage Loans Credit Quality [Line Items] | ||
Carrying value of total mortgage loans on real estate | $ 15,511 | $ 12,942 |
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 total mortgage loans on real estate | $ 14,121 | $ 11,656 |
Percentage of total mortgage loans on real estate | 91.00% | 90.10% |
Debt-service coverage ratio | 2.35 | 2.30 |
Loan-to-value ratio, 65% to 74% [Member] | ||
Mortgage Loans Credit Quality [Line Items] | ||
Carrying value of total mortgage loans on real estate | $ 1,389 | $ 1,234 |
Percentage of total mortgage loans on real estate | 9.00% | 9.50% |
Debt-service coverage ratio | 1.88 | 1.76 |
Loan-to-value ratio, 75% to 100% [Member] | ||
Mortgage Loans Credit Quality [Line Items] | ||
Carrying value of total mortgage loans on real estate | $ 1 | $ 52 |
Percentage of total mortgage loans on real estate | 0.00% | 0.40% |
Debt-service coverage ratio | 1.09 | 1.03 |
Investments (Credit Quality I_2
Investments (Credit Quality Indicators For Residential Mortgage Loans) (Details) - Residential [Member] - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Carrying value of total mortgage loans on real estate | $ 733 | $ 248 |
Percentage of total mortgage loans on real estate | 100.00% | 100.00% |
Performing [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Carrying value of total mortgage loans on real estate | $ 716 | $ 247 |
Percentage of total mortgage loans on real estate | 97.70% | 99.60% |
Nonperforming [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Carrying value of total mortgage loans on real estate | $ 17 | $ 1 |
Percentage of total mortgage loans on real estate | 2.30% | 0.40% |
Investments (Net Investment Inc
Investments (Net Investment Income) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Investment income | $ 5,366 | $ 5,178 | $ 5,041 |
Investment expense | (404) | (334) | (281) |
Net investment income | 4,962 | 4,844 | 4,760 |
Fixed Maturity Securities [Member] | AFS Securities [Member] | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Investment income | 4,214 | 4,129 | 4,048 |
Equity AFS Securities [Member] | AFS Securities [Member] | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Investment income | 12 | ||
Trading Securities [Member] | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Investment income | 187 | 79 | 88 |
Equity Securities [Member] | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Investment income | 4 | 4 | |
Mortgage Loans On Real Estate [Member] | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Investment income | 626 | 492 | 433 |
Real estate [Member] | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Investment income | 1 | 1 | 1 |
Policy loans [Member] | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Investment income | 128 | 122 | 134 |
Cash And Invested Cash [Member] | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Investment income | 33 | 23 | 11 |
Commercial Mortgage Loan Prepayment And Bond Make Whole Premiums [Member] | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Investment income | 115 | 78 | 138 |
Alternative investments [Member] | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Investment income | 24 | 222 | 165 |
Consent fees [Member] | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Investment income | 7 | 4 | 6 |
Other Investments [Member] | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Investment income | $ 27 | $ 24 | $ 5 |
Investments (Schedule Of Realiz
Investments (Schedule Of Realized Gain (Loss)) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Realized gain (loss) related to certain investments | |||
AFS securities. Gross OTTI | $ (15) | $ (7) | $ (20) |
Gain (loss) on other investments | (15) | (15) | (10) |
Associated amortization of DAC, VOBA, DSI and DFEL and changes in other contract holder funds | (13) | (22) | (21) |
Total realized gain (loss) related to certain investments | (69) | (88) | (71) |
Realized gain (loss) on the mark-to-market on certain instruments | (426) | 251 | (155) |
Indexed annuity and IUL contracts net derivatives results: | |||
Gross gain (loss) | (80) | (51) | (22) |
Associated amortization of DAC, VOBA, DSI, and DFEL | 2 | 12 | (2) |
Variable annuity net derivatives results: | |||
Gross gain (loss) | (223) | (184) | (174) |
Associated amortization of DAC, VOBA, DSI, and DFEL | (32) | (32) | (32) |
Total realized gain (loss) | (828) | (92) | (456) |
Fixed Maturity Securities [Member] | |||
Realized gain (loss) related to certain investments | |||
AFS securities. Gross gains | 44 | 36 | 17 |
AFS securities. Gross losses | (70) | (80) | (43) |
AFS securities. Gross OTTI | (15) | (7) | (20) |
Equity AFS Securities [Member] | |||
Realized gain (loss) related to certain investments | |||
AFS securities. Gross gains | $ 6 | ||
Equity Securities [Member] | |||
Realized gain (loss) related to certain investments | |||
Gain (loss) on other investments | $ (4) | $ (17) |
Investments (OTTI Recognized In
Investments (OTTI Recognized In Net Income (Loss) And OCI) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
OTTI Recognized in Net Income (Loss) | |||
Gross OTTI recognized in net income (loss) | $ (15) | $ (7) | $ (20) |
Associated amortization of DAC, VOBA, DSI and DFEL | 2 | ||
Net OTTI recognized in net income (loss) | (15) | (7) | (18) |
OTTI Recognized in OCI | |||
Gross OTTI recognized in OCI | 14 | ||
Change in DAC, VOBA, DSI and DFEL | (1) | ||
Net OTTI recognized in OCI | 13 | ||
Fixed Maturity Securities [Member] | Corporate Bonds [Member] | |||
OTTI Recognized in Net Income (Loss) | |||
Gross OTTI recognized in net income (loss) | (13) | (5) | (13) |
Fixed Maturity Securities [Member] | State And Municipal Bonds [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) | (1) | (2) |
Fixed Maturity Securities [Member] | CMBS [Member] | |||
OTTI Recognized in Net Income (Loss) | |||
Gross OTTI recognized in net income (loss) | (2) | ||
Fixed Maturity Securities [Member] | ABS [Member] | |||
OTTI Recognized in Net Income (Loss) | |||
Gross OTTI recognized in net income (loss) | $ (1) | $ (1) | $ (2) |
Investments (Payables For Colla
Investments (Payables For Collateral On Investments) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Carrying Value Of Payables For Collateral On Investments [Abstract] | |||
Collateral payable for derivative investments | [1] | $ 1,383 | $ 616 |
Securities pledged under securities lending agreements | [2] | 114 | 88 |
Securities pledged under repurchase agreements | [3] | 152 | |
Investments pledged for Federal Home Loan Bank of Indianapolis ('FHLBI') | [4] | 3,580 | 3,930 |
Total payables for collateral on investments | 5,077 | 4,786 | |
Fair Value Of Related Investments Or Collateral [Abstract] | |||
Collateral payable for derivative investments | [1] | 1,383 | 616 |
Securities pledged under securities lending agreements | [2] | 110 | 85 |
Securities pledged under repurchase agreements | [3] | 157 | |
Investments pledged for Federal Home Loan Bank of Indianapolis('FHLBI') | [4] | 5,480 | 5,923 |
Total payables for collateral on investments | $ 6,973 | $ 6,781 | |
Percentage of the fair value of domestic securities obtained as collateral under securities lending agreements. | 102.00% | ||
Percentage of the fair value of foreign securities obtained as collateral under securities lending agreements. | 105.00% | ||
Maximum [Member] | |||
Fair Value Of Related Investments Or Collateral [Abstract] | |||
Percentage of the fair value of securities obtained as collateral under reverse repurchase agreements. | 95.00% | ||
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 securities obtained as collateral under reverse repurchase agreements. | 80.00% | ||
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. The collateral requirements are generally 80 % 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. As of December 31, 2019, we were not participating in any open repurchase agreements. | ||
[4] | Our pledged investments for FHLBI are included in fixed maturity AFS securities and mortgage loans on real estate on our Consolidated Balance Sheets. The collateral requirements are generally 105 % to 115 % of the fair value for fixed maturity AFS securities and 155 % to 175 % of the fair value for mortgage loans on real estate. The cash received in these transactions is primarily invested in cash and invested cash or fixed maturity AFS securities. |
Investments (Schedule Of Increa
Investments (Schedule Of Increase (Decrease) In Payables For Collateral On Investments) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Increase (decrease) in payables for collateral on investments | |||
Collateral payable for derivative investments | $ 767 | $ (85) | $ (112) |
Securities pledged under securities lending agreements | 26 | (134) | 5 |
Securities pledged under repurchase agreements | (152) | (379) | 1 |
Investments pledged for FHLBI | (350) | 1,030 | (450) |
Total increase (decrease) in payables for collateral on investments | $ 291 | $ 432 | $ (556) |
Investments (Schedule of Securi
Investments (Schedule of Securities Pledged by Contractual Maturity) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Securities Lending | [1] | $ 114 | $ 88 |
Total gross secured borrowings | 114 | 240 | |
Corporate Bonds [Member] | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Repurchase Agreements | 114 | 88 | |
Securities Lending | 152 | ||
Overnight and Continuous [Member] | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Total gross secured borrowings | 114 | 88 | |
Overnight and Continuous [Member] | Corporate Bonds [Member] | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Repurchase Agreements | $ 114 | 88 | |
Greater than 90 days [Member] | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Total gross secured borrowings | 152 | ||
Greater than 90 days [Member] | Corporate Bonds [Member] | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Securities Lending | $ 152 | ||
[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 ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Credit Derivatives [Line Items] | ||
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | $ 45 | |
Cash flow hedge, reclassified to earnings, net | 0 | $ 0 |
Exposure Associated With Collateralization Events | 0 | 0 |
Maximum [Member] | ||
Credit Derivatives [Line Items] | ||
Non-performance Risk Adjustment | $ 0 | |
Credit Default Swaps [Member] | ||
Credit Derivatives [Line Items] | ||
Exposure | $ 0 |
Derivative Instruments (Outstan
Derivative Instruments (Outstanding Derivative Instruments With Off-Balance-Sheet Risks) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Outstanding derivative instruments with off-balance-sheet risks | |||
Notional Amounts | $ 161,115 | $ 135,355 | |
Asset Fair Value | 4,261 | 2,625 | |
Liability Fair Value | 4,621 | 1,986 | |
Interest rate contracts [Member] | |||
Outstanding derivative instruments with off-balance-sheet risks | |||
Notional Amounts | [1] | 114,641 | |
Foreign currency contracts [Member] | |||
Outstanding derivative instruments with off-balance-sheet risks | |||
Notional Amounts | [2] | 3,136 | |
Equity market contracts [Member] | |||
Outstanding derivative instruments with off-balance-sheet risks | |||
Notional Amounts | 43,283 | ||
Credit contracts [Member] | |||
Outstanding derivative instruments with off-balance-sheet risks | |||
Notional Amounts | 55 | ||
GLB Direct Embedded Derivatives [Member] | Non-Qualifying Hedging [Member] | |||
Outstanding derivative instruments with off-balance-sheet risks | |||
Asset Fair Value | [3] | 450 | 123 |
GLB Ceded Embedded Derivatives [Member] | Non-Qualifying Hedging [Member] | |||
Outstanding derivative instruments with off-balance-sheet risks | |||
Asset Fair Value | [3],[4] | 60 | 72 |
Liability Fair Value | [3],[4] | 510 | 196 |
Embedded derivatives - Reinsurance related [Member] | Non-Qualifying Hedging [Member] | |||
Outstanding derivative instruments with off-balance-sheet risks | |||
Asset Fair Value | [5] | 188 | |
Liability Fair Value | [5] | 375 | |
Indexed Annuity And IUL Contracts [Member] | Non-Qualifying Hedging [Member] | |||
Outstanding derivative instruments with off-balance-sheet risks | |||
Asset Fair Value | [3],[6] | 927 | 902 |
Liability Fair Value | [3],[6] | 2,585 | 1,305 |
Cash Flow Hedges [Member] | Qualifying Hedges [Member] | |||
Outstanding derivative instruments with off-balance-sheet risks | |||
Notional Amounts | 4,048 | 3,854 | |
Asset Fair Value | 299 | 200 | |
Liability Fair Value | 63 | 48 | |
Derivative investments [Member] | Interest rate contracts [Member] | Non-Qualifying Hedging [Member] | |||
Outstanding derivative instruments with off-balance-sheet risks | |||
Notional Amounts | [7] | 112,921 | 100,628 |
Asset Fair Value | [7] | 1,082 | 464 |
Liability Fair Value | [7] | 219 | 138 |
Derivative investments [Member] | Foreign currency contracts [Member] | Non-Qualifying Hedging [Member] | |||
Outstanding derivative instruments with off-balance-sheet risks | |||
Notional Amounts | [7] | 262 | 47 |
Asset Fair Value | [7] | 1 | |
Liability Fair Value | [7] | 3 | |
Derivative investments [Member] | Equity market contracts [Member] | Non-Qualifying Hedging [Member] | |||
Outstanding derivative instruments with off-balance-sheet risks | |||
Notional Amounts | [7] | 43,283 | 30,273 |
Asset Fair Value | [7] | 1,442 | 676 |
Liability Fair Value | [7] | 664 | 162 |
Derivative investments [Member] | Credit contracts [Member] | Non-Qualifying Hedging [Member] | |||
Outstanding derivative instruments with off-balance-sheet risks | |||
Notional Amounts | [7] | 55 | |
Derivative investments [Member] | Cash Flow Hedges [Member] | Interest rate contracts [Member] | Qualifying Hedges [Member] | |||
Outstanding derivative instruments with off-balance-sheet risks | |||
Notional Amounts | [7] | 1,174 | 1,528 |
Asset Fair Value | [7] | 108 | 33 |
Liability Fair Value | [7] | 12 | 9 |
Derivative investments [Member] | Cash Flow Hedges [Member] | Foreign currency contracts [Member] | Qualifying Hedges [Member] | |||
Outstanding derivative instruments with off-balance-sheet risks | |||
Notional Amounts | [7] | 2,874 | 2,326 |
Asset Fair Value | [7] | 191 | 167 |
Liability Fair Value | [7] | 51 | 39 |
Derivative investments [Member] | Fair Value Hedges [Member] | Interest rate contracts [Member] | Qualifying Hedges [Member] | |||
Outstanding derivative instruments with off-balance-sheet risks | |||
Notional Amounts | [7] | 546 | 553 |
Liability Fair Value | [7] | $ 202 | $ 137 |
[1] | As of December 31, 2019, the latest maturity date for which we were hedging our exposure to the variability in future cash flows for these instruments was November 24, 2021 . | ||
[2] | As of December 31, 2019, the latest maturity date for which we were hedging our exposure to the variability in future cash flows for these instruments was February 26, 2050 . | ||
[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 future contract benefits on our Consolidated Balance Sheets. | ||
[7] | Reported in derivative investments and other liabilities on our Consolidated Balance Sheets. |
Derivative Instruments (Maturit
Derivative Instruments (Maturity Of The Notional Amounts Of Derivative Financial Instruments) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Maturity of the notional amounts of derivative financial instruments | |||
Remaining Life Less Than 1 Year | $ 39,153 | ||
Remaining Life - 1 - 5 Years | 61,169 | ||
Remaining Life - 6 - 10 Years | 25,671 | ||
Remaining Life - 11 - 30 Years | 30,327 | ||
Remaining Life Over - 30 Years | 4,795 | ||
Remaining Life - Total Years | 161,115 | $ 135,355 | |
Interest rate contracts [Member] | |||
Maturity of the notional amounts of derivative financial instruments | |||
Remaining Life Less Than 1 Year | [1] | 11,341 | |
Remaining Life - 1 - 5 Years | [1] | 53,011 | |
Remaining Life - 6 - 10 Years | [1] | 20,948 | |
Remaining Life - 11 - 30 Years | [1] | 28,841 | |
Remaining Life Over - 30 Years | [1] | 500 | |
Remaining Life - Total Years | [1] | $ 114,641 | |
Derivative maturity date | Nov. 24, 2021 | ||
Foreign currency contracts [Member] | |||
Maturity of the notional amounts of derivative financial instruments | |||
Remaining Life Less Than 1 Year | [2] | $ 218 | |
Remaining Life - 1 - 5 Years | [2] | 383 | |
Remaining Life - 6 - 10 Years | [2] | 961 | |
Remaining Life - 11 - 30 Years | [2] | 1,473 | |
Remaining Life Over - 30 Years | [2] | 101 | |
Remaining Life - Total Years | [2] | $ 3,136 | |
Derivative maturity date | Feb. 26, 2050 | ||
Equity market contracts [Member] | |||
Maturity of the notional amounts of derivative financial instruments | |||
Remaining Life Less Than 1 Year | $ 27,594 | ||
Remaining Life - 1 - 5 Years | 7,720 | ||
Remaining Life - 6 - 10 Years | 3,762 | ||
Remaining Life - 11 - 30 Years | 13 | ||
Remaining Life Over - 30 Years | 4,194 | ||
Remaining Life - Total Years | 43,283 | ||
Credit contracts [Member] | |||
Maturity of the notional amounts of derivative financial instruments | |||
Remaining Life - 1 - 5 Years | 55 | ||
Remaining Life - Total Years | $ 55 | ||
[1] | As of December 31, 2019, the latest maturity date for which we were hedging our exposure to the variability in future cash flows for these instruments was November 24, 2021 . | ||
[2] | As of December 31, 2019, the latest maturity date for which we were hedging our exposure to the variability in future cash flows for these instruments was February 26, 2050 . |
Derivative Instruments (Cumulat
Derivative Instruments (Cumulative Basis Adjustments For Fair Value Hedges) (Details) - Fixed Maturity Securities [Member] $ in Millions | Dec. 31, 2019USD ($) |
Derivatives, Fair Value [Line Items] | |
Amortized cost of the hedged assets (liabilities) | $ 776 |
Cumulative fair value hedging adjustments included in the amortized cost of the hedged assets (liabilities) | $ 202 |
Derivative Instruments (Change
Derivative Instruments (Change In Unrealized Gain On Derivative Instruments In Accumulated OCI) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Change in our unrealized gain on derivative instruments in accumulated OCI | ||||
Balance as of beginning-of-year | $ 659 | |||
Income tax benefit (expense) | 37 | $ (257) | $ 1,287 | |
Balance as of end-of-year | 5,836 | 659 | ||
Unrealized Gain (Loss) on Derivative Instruments [Member] | ||||
Change in our unrealized gain on derivative instruments in accumulated OCI | ||||
Balance as of beginning-of-year | 119 | 27 | 93 | |
Cumulative effect from adoption of new accounting standard | 6 | |||
Change in foreign currency exchange rate adjustment | (52) | 111 | (137) | |
Change in DAC, VOBA, DSI and DFEL | (5) | (14) | 1 | |
Income tax benefit (expense) | (26) | (29) | 26 | |
Reclassification adjustment for gains (losses) included in net income (loss) | 47 | 31 | 31 | |
Associated amortization of DAC, VOBA, DSI and DFEL | (2) | (3) | (2) | |
Income tax benefit (expense) | (9) | (6) | (10) | |
Balance as of end-of-year | 181 | 119 | 27 | |
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 | 73 | (4) | 43 | |
Unrealized Gain (Loss) on Derivative Instruments [Member] | Cash Flow Hedges [Member] | Interest rate contracts [Member] | Net Investment Income [Member] | ||||
Change in our unrealized gain on derivative instruments in accumulated OCI | ||||
Reclassification adjustment for gains (losses) included in net income (loss) | [1] | 3 | 4 | 4 |
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 | 108 | 44 | 20 | |
Unrealized Gain (Loss) on Derivative Instruments [Member] | Cash Flow Hedges [Member] | Foreign currency contracts [Member] | Net Investment Income [Member] | ||||
Change in our unrealized gain on derivative instruments in accumulated OCI | ||||
Reclassification adjustment for gains (losses) included in net income (loss) | [1] | 35 | $ 27 | 18 |
Unrealized Gain (Loss) on Derivative Instruments [Member] | Cash Flow Hedges [Member] | Foreign currency contracts [Member] | Realized Gain (Loss) [Member] | ||||
Change in our unrealized gain on derivative instruments in accumulated OCI | ||||
Reclassification adjustment for gains (losses) included in net income (loss) | [2] | $ 9 | $ 9 | |
[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 (Effects
Derivative Instruments (Effects Of Qualifying And Non-Qualifying Hedges) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Realized Gain (Loss) [Member] | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Total line items in which the effects of fair value or cash flow hedges are recorded | $ (828) |
Net Investment Income [Member] | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Total line items in which the effects of fair value or cash flow hedges are recorded | 4,962 |
Net Investment Income [Member] | Qualifying Hedges [Member] | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Hedged items | 63 |
Derivatives designated as hedging instruments | (63) |
Interest rate contracts [Member] | Realized Gain (Loss) [Member] | Non-Qualifying Hedging [Member] | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Non-qualifying hedges gain (loss) | 982 |
Interest rate contracts [Member] | Net Investment Income [Member] | Qualifying Hedges [Member] | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Amount of gain or (loss) reclassified from AOCI into income | 3 |
Foreign currency contracts [Member] | Realized Gain (Loss) [Member] | Qualifying Hedges [Member] | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Amount of gain or (loss) reclassified from AOCI into income | 9 |
Foreign currency contracts [Member] | Realized Gain (Loss) [Member] | Non-Qualifying Hedging [Member] | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Non-qualifying hedges gain (loss) | (1) |
Foreign currency contracts [Member] | Net Investment Income [Member] | Qualifying Hedges [Member] | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Amount of gain or (loss) reclassified from AOCI into income | 35 |
Equity market contracts [Member] | Realized Gain (Loss) [Member] | Non-Qualifying Hedging [Member] | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Non-qualifying hedges gain (loss) | (137) |
GLB Embedded Derivative [Member] | Realized Gain (Loss) [Member] | Non-Qualifying Hedging [Member] | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Non-qualifying hedges gain (loss) | 1 |
Embedded derivatives - Reinsurance related [Member] | Realized Gain (Loss) [Member] | Non-Qualifying Hedging [Member] | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Non-qualifying hedges gain (loss) | (626) |
Indexed Annuity And IUL Contracts [Member] | Realized Gain (Loss) [Member] | Non-Qualifying Hedging [Member] | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Non-qualifying hedges gain (loss) | $ (742) |
Derivative Instruments (Gains (
Derivative Instruments (Gains (Losses) On Derivative Instruments Recorded Within Income (Loss) From Continuing Operations) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | ||
Gains (losses) | |||
Gains (losses) | $ 710 | $ (1,821) | |
Qualifying Hedges [Member] | Cash Flow Hedges [Member] | |||
Gains (losses) | |||
Gains (losses) | 31 | 31 | |
Qualifying Hedges [Member] | Fair Value Hedges [Member] | |||
Gains (losses) | |||
Gains (losses) | 23 | (16) | |
Qualifying Hedges [Member] | Net Investment Income [Member] | Cash Flow Hedges [Member] | Interest rate contracts [Member] | |||
Gains (losses) | |||
Gains (losses) | [1] | 4 | 4 |
Qualifying Hedges [Member] | Net Investment Income [Member] | Cash Flow Hedges [Member] | Foreign currency contracts [Member] | |||
Gains (losses) | |||
Gains (losses) | [1] | 27 | 18 |
Qualifying Hedges [Member] | Net Investment Income [Member] | Fair Value Hedges [Member] | Interest rate contracts [Member] | |||
Gains (losses) | |||
Gains (losses) | [1] | (14) | (23) |
Qualifying Hedges [Member] | Realized Gain (Loss) [Member] | Cash Flow Hedges [Member] | Foreign currency contracts [Member] | |||
Gains (losses) | |||
Gains (losses) | [2] | 9 | |
Qualifying Hedges [Member] | Realized Gain (Loss) [Member] | Fair Value Hedges [Member] | Interest rate contracts [Member] | |||
Gains (losses) | |||
Gains (losses) | [2] | 37 | 7 |
Non-Qualifying Hedging [Member] | Realized Gain (Loss) [Member] | Interest rate contracts [Member] | |||
Gains (losses) | |||
Gains (losses) | [2] | (149) | 103 |
Non-Qualifying Hedging [Member] | Realized Gain (Loss) [Member] | Foreign currency contracts [Member] | |||
Gains (losses) | |||
Gains (losses) | [2] | 5 | |
Non-Qualifying Hedging [Member] | Realized Gain (Loss) [Member] | Equity market contracts [Member] | |||
Gains (losses) | |||
Gains (losses) | [2] | 445 | (1,427) |
Non-Qualifying Hedging [Member] | Realized Gain (Loss) [Member] | GLB Embedded Derivative [Member] | |||
Gains (losses) | |||
Gains (losses) | [2] | (1) | |
Non-Qualifying Hedging [Member] | Realized Gain (Loss) [Member] | Embedded derivatives - Reinsurance related [Member] | |||
Gains (losses) | |||
Gains (losses) | [2] | 292 | (141) |
Non-Qualifying Hedging [Member] | Realized Gain (Loss) [Member] | Indexed Annuity And IUL Contracts [Member] | |||
Gains (losses) | |||
Gains (losses) | [2] | 81 | (400) |
Non-Qualifying Hedging [Member] | Commissions And Other Expenses [Member] | Equity market contracts [Member] | |||
Gains (losses) | |||
Gains (losses) | [3] | $ (17) | 28 |
Non-Qualifying Hedging [Member] | Commissions And Other Expenses [Member] | Credit contracts [Member] | |||
Gains (losses) | |||
Gains (losses) | [3] | $ 1 | |
[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 (Gains_2
Derivative Instruments (Gains (Losses) On Derivative Instruments Designated As Cash Flow Hedges) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Gains (losses) on derivative instruments designated and qualifying as cash flow hedges | |||
Offset to net investment income | $ 4,962 | $ 4,844 | $ 4,760 |
Offset to realized gain (loss) | $ (828) | (92) | (456) |
Qualifying Hedges [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 | 4 | 22 | |
Offset to realized gain (loss) | $ 27 | $ 9 |
Derivative Instruments (Open Cr
Derivative Instruments (Open Credit Default Swap Liabilities) (Details) - Credit Default Swap Liabilities [Member] $ in Millions | 12 Months Ended | |
Dec. 31, 2019USD ($)security | ||
Summary Of Credit Derivatives | ||
Maximum potential payout | $ 55 | |
BBB+ [Member] | ||
Summary Of Credit Derivatives | ||
Maturity | Dec. 20, 2024 | |
Credit rating of underlying obligation | BBB+ | [1] |
Number of instruments | security | 1 | |
Fair value | $ 1 | [2] |
Maximum potential payout | $ 55 | |
[1] | Represents average credit ratings based on the midpoint of the applicable ratings among Moody ’ s, S&P and Fitch Ratings, as scaled to the corresponding S&P ratings. | |
[2] | Broker quotes are used to determine the market value of our credit default swaps. |
Derivative Instruments (Collate
Derivative Instruments (Collateral Support Agreements) (Details) - Credit Default Swap Liabilities [Member] $ in Millions | Dec. 31, 2019USD ($) |
Credit risk related contingent features collateral | |
Maximum potential payout | $ 55 |
Maximum collateral potentially required to post | $ 55 |
Derivative Instruments (Schedul
Derivative Instruments (Schedule Of Collateral Amounts With Rights To Reclaim Or Obligation To Return Cash) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Credit Derivatives [Line Items] | ||
Collateral Posted by Counter-Party (Held by LNL) | $ 1,381 | $ 616 |
Collateral Posted by LNL (Held by Counter-Party) | (190) | (66) |
AA- [Member] | ||
Credit Derivatives [Line Items] | ||
Collateral Posted by Counter-Party (Held by LNL) | 441 | 33 |
Collateral Posted by LNL (Held by Counter-Party) | (22) | (4) |
A+ [Member] | ||
Credit Derivatives [Line Items] | ||
Collateral Posted by Counter-Party (Held by LNL) | 549 | 296 |
Collateral Posted by LNL (Held by Counter-Party) | (168) | (26) |
A [Member] | ||
Credit Derivatives [Line Items] | ||
Collateral Posted by Counter-Party (Held by LNL) | 36 | 106 |
Collateral Posted by LNL (Held by Counter-Party) | (36) | |
A- [Member] | ||
Credit Derivatives [Line Items] | ||
Collateral Posted by Counter-Party (Held by LNL) | 355 | 4 |
Collateral Posted by LNL (Held by Counter-Party) | ||
BBB+ [Member] | ||
Credit Derivatives [Line Items] | ||
Collateral Posted by Counter-Party (Held by LNL) | 177 | |
Collateral Posted by LNL (Held by Counter-Party) |
Derivative Instruments (Sched_2
Derivative Instruments (Schedule Of Offsetting Assets And Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Financial Assets | ||
Derivative Instruments, Gross amount of recognized assets | $ 2,619 | $ 1,282 |
Derivative Instruments, Gross amounts offset | (708) | (201) |
Derivative Instruments, Net amount of assets | 1,911 | 1,081 |
Derivative Instruments, Cash collateral | (1,381) | (616) |
Derivative Instruments, Non-cash collateral | (242) | (58) |
Derivative Instruments, Net amount | 288 | 407 |
Embedded Derivative Instruments, Gross amount of recognized assets | 1,437 | 1,285 |
Embedded Derivative Instruments, Gross amounts offset | ||
Embedded Derivative Instruments, Net amount of assets | 1,437 | 1,285 |
Embedded Derivative Instruments, Cash collateral | ||
Embedded Derivative Instruments, Non-cash collateral | ||
Embedded Derivative Instruments, Net amount | 1,437 | 1,285 |
Total, Gross amount of recognized assets | 4,056 | 2,567 |
Total, Gross amounts offset | (708) | (201) |
Total, Net amount of assets | 3,348 | 2,366 |
Total, Cash collateral | (1,381) | (616) |
Total, Non-cash collateral | (242) | (58) |
Total, Net amount | 1,725 | 1,692 |
Financial Liabilities | ||
Derivative Instruments, Gross amount of recognized liabilities | 771 | 806 |
Derivative Instruments, Gross amounts offset | (15) | (59) |
Derivative Instruments, Net amount of liabilities | 756 | 747 |
Derivative Instruments, Cash collateral | (190) | (66) |
Derivative Instruments, Non-cash collateral | (190) | |
Derivative Instruments, Net amount | 566 | 491 |
Embedded Derivative Instruments, Gross amount of recognized liabilities | 3,470 | 1,501 |
Embedded Derivative Instruments, Gross amounts offset | ||
Embedded Derivative Instruments, Net amount of liabilities | 3,470 | 1,501 |
Embedded Derivative Instruments, Cash collateral | ||
Embedded Derivative Instruments, Non-cash collateral | ||
Embedded Derivative Instruments, Net amount | 3,470 | 1,501 |
Total, Gross amount of recognized liabilities | 4,241 | 2,307 |
Total, Gross amounts offset | (15) | (59) |
Total, Net amount of liabilities | 4,226 | 2,248 |
Total, Cash collateral | (190) | (66) |
Total, Non-cash collateral | (190) | |
Total, Net amount | $ 4,036 | $ 1,992 |
Federal Income Taxes (Narrative
Federal Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Federal Income Taxes [Abstract] | |||
Federal statutory rate | 21.00% | 21.00% | 35.00% |
Net operating loss carryforwards | $ 1,000 | ||
Tax credit carryforward, valuation allowance | 0 | ||
Unrecognized tax benefits, that, if recognized, would impact income tax expense and effective tax rate | 41 | $ 12 | |
Recognized interest and penalty expense related to uncertain tax positions | 0 | 0 | $ 0 |
Accrued interest and penalty expense related to unrecognized tax benefits | $ 0 | $ 0 |
Federal Income Taxes (Federal I
Federal Income Taxes (Federal Income Tax Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income tax expense (benefit), continuing operations [Abstract] | |||
Current | $ 175 | $ 179 | $ 118 |
Deferred | (212) | 78 | (1,405) |
Federal income tax expense (benefit) | $ (37) | $ 257 | $ (1,287) |
Federal Income Taxes (Reconcili
Federal Income Taxes (Reconciliation Of The Effective Tax Rate Differences) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Reconciliation of effective tax rate differences [Abstract] | ||||
Income (loss) before taxes | $ 577 | $ 1,830 | $ 731 | |
Federal statutory rate | 21.00% | 21.00% | 35.00% | |
Federal income tax expense (benefit) at federal statutory rate | $ 121 | $ 384 | $ 256 | |
Effect of: | ||||
Tax-preferred investment income | [1] | (99) | (87) | (280) |
Tax credits | (40) | (39) | (29) | |
Excess tax benefits from stock-based compensation | (6) | (3) | (8) | |
Goodwill impairment | 316 | |||
Tax impact associated with the Tax Cuts and Jobs Act | [2] | (16) | 3 | (1,526) |
Other items | 3 | (1) | (16) | |
Federal income tax expense (benefit) | $ (37) | $ 257 | $ (1,287) | |
Effective tax rate | (6.00%) | 14.00% | (176.00%) | |
Variable Annuity [Member] | ||||
Effect of: | ||||
Tax impact associated with the Tax Cuts and Jobs Act | $ 3 | |||
[1] | Relates primarily to separate account dividends eligible for the dividends-received deduction. As a result of the Tax Cuts and Jobs Act (the “Tax Act”), the recorded tax benefit for the separate account dividends-received deduction was substantially less in 2019 and 2018 as compared to 2017. | |||
[2] | As a result of the enactment of the Tax Act in 2017, we remeasured our existing deferred tax balances at the prevailing corporate federal income tax rate of 21 % and recognized a $ 1.5 billion tax benefit. In 2018, we recognized a $ 3 million net tax benefit from the impact of the reduced federal statutory rate under the Tax Act on our adoption of an Internal Revenue Service pronouncement related to variable annuity contracts. In 2019, we recognized a $ 16 million net tax benefit from the impact of the reduced corporate tax rate under the Tax Act on our election to revalue policyholder tax reserves |
Federal Income Taxes (Federal_2
Federal Income Taxes (Federal Income Tax Asset (Liability)) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Federal income tax asset (liability) [Abstract] | ||
Current | $ 255 | $ 205 |
Deferred | (2,605) | (1,421) |
Total federal income tax asset (liability) | $ (2,350) | $ (1,216) |
Federal Income Taxes (Significa
Federal Income Taxes (Significant Components Of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred Tax Assets | ||
Future contract benefits and other contract holder funds | $ 527 | $ 549 |
Reinsurance related embedded derivative liability | 79 | |
Compensation and benefit plans | 135 | 120 |
Intangibles | 26 | 40 |
Net operating losses | 216 | 264 |
Other | 14 | 59 |
Total deferred tax assets | 997 | 1,032 |
Deferred Tax Liabilities | ||
DAC | 854 | 1,380 |
VOBA | 191 | 302 |
Net unrealized gain on fixed maturity AFS securities | 2,216 | 333 |
Net unrealized gain on trading securities | 70 | 25 |
Investment activity | 154 | 334 |
Reinsurance related embedded derivative asset | 39 | |
Deferred gain on business sold through reinsurance | 4 | 34 |
Other | 113 | 6 |
Total deferred tax liabilities | 3,602 | 2,453 |
Net deferred tax asset (liability) | $ (2,605) | $ (1,421) |
Federal Income Taxes (Reconci_2
Federal Income Taxes (Reconciliation Of Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of unrecognized tax benefits [Roll Forward] | ||
Balance as of beginning-of-year | $ 12 | $ 11 |
Increases for prior year tax positions | 29 | |
Increases for current year tax positions | 1 | |
Balance as of end-of-year | $ 41 | $ 12 |
DAC, VOBA, DSI, and DFEL (DAC)
DAC, VOBA, DSI, and DFEL (DAC) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Changes in DAC [Roll Forward] | |||
Balance as of beginning-of-year | $ 9,509 | $ 7,909 | $ 8,269 |
Business acquired (sold) through reinsurance | (246) | ||
Business recaptured through reinsurance | 59 | ||
Deferrals | 1,900 | 1,596 | 1,345 |
Amortization, net of interest: | |||
Amortization, excluding unlocking, net of interest | (922) | (913) | (922) |
Unlocking | (471) | (115) | 61 |
Adjustment related to realized gains (losses) | (43) | (42) | (55) |
Adjustment related to unrealized (gains) losses | (2,614) | 1,320 | (789) |
Balance as of end-of-year | $ 7,418 | $ 9,509 | $ 7,909 |
DAC, VOBA, DSI, and DFEL (VOBA)
DAC, VOBA, DSI, and DFEL (VOBA) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Changes in VOBA [Roll Forward] | ||||
Balance as of beginning-of-year | $ 799 | $ 499 | $ 874 | |
Business acquired (sold) through reinsurance | (11) | |||
Business acquired | 30 | |||
Deferrals | 6 | 7 | 7 | |
Amortization: | ||||
Amortization, excluding unlocking | (115) | (127) | (105) | |
Unlocking | 143 | (60) | (48) | |
Accretion of interest | [1] | 45 | 48 | 52 |
Adjustment related to realized (gains) losses | (1) | (2) | (1) | |
Adjustment related to unrealized (gains) losses | (550) | 415 | (280) | |
Balance as of end-of-year | $ 327 | $ 799 | $ 499 | |
Maximum [Member] | ||||
Amortization: | ||||
Interest accrual rate | 6.90% | 6.90% | 6.90% | |
Minimum [Member] | ||||
Amortization: | ||||
Interest accrual rate | 4.20% | 4.20% | 4.20% | |
[1] | The interest accrual rates utilized to calculate the accretion of interest ranged from 4.2 % to 6.9 %. |
DAC, VOBA, DSI, and DFEL (Estim
DAC, VOBA, DSI, and DFEL (Estimated Future Amortization of VOBA) (Details) $ in Millions | Dec. 31, 2019USD ($) |
Estimated future amortization of VOBA, net of interest [Abstract] | |
2020 | $ 72 |
2021 | 66 |
2022 | 67 |
2023 | 65 |
2024 | $ 61 |
DAC, VOBA, DSI, and DFEL (DSI)
DAC, VOBA, DSI, and DFEL (DSI) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Changes in DSI [Roll Forward] | |||
Balance as of beginning-of-year | $ 298 | $ 287 | $ 293 |
Business acquired (sold) through reinsurance | (21) | ||
Deferrals | 26 | 48 | 29 |
Amortization, net of interest: | |||
Amortization, excluding unlocking, net of interest | (28) | (28) | (30) |
Unlocking | (3) | (4) | |
Adjustment related to realized (gains) losses | (2) | (1) | (2) |
Adjustment related to unrealized (gains) losses | (10) | 13 | 1 |
Balance as of end-of-year | $ 281 | $ 298 | $ 287 |
DAC, VOBA, DSI, and DFEL (DFEL)
DAC, VOBA, DSI, and DFEL (DFEL) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Changes in DFEL [Abstract] | |||
Balance as of beginning-of-year | $ 2,763 | $ 1,429 | $ 1,855 |
Business recaptured through reinsurance | 5 | ||
Deferrals | 1,092 | 874 | 753 |
Amortization, net of interest: | |||
Amortization, excluding unlocking, net of interest | (533) | (474) | (383) |
Unlocking | (426) | (52) | (3) |
Adjustment related to realized (gains) losses | (11) | (19) | (18) |
Adjustment related to unrealized (gains) losses | (2,244) | 1,005 | (775) |
Balance as of end-of-year | $ 646 | $ 2,763 | $ 1,429 |
Reinsurance (Narrative) (Detail
Reinsurance (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Ceded Credit Risk [Line Items] | ||
Maximum retention per single insured life on fixed and VUL insurance contracts | $ 20 | |
Percent of mortality risk reinsured on newly issued non-term life insurance contracts | 25.00% | |
Reinsurance recoverables | $ 19,164 | $ 19,826 |
Liabilities for funds withheld | 5,566 | 4,860 |
Swiss Re [Member] | ||
Ceded Credit Risk [Line Items] | ||
Reinsurance receivable | 1,300 | 1,500 |
Trust funded to support reinsurance receivable | 2,700 | |
Liabilities for funds withheld | 164 | |
Liabilities for reinsurance related embedded derivatives | 31 | |
LNBAR [Member] | ||
Ceded Credit Risk [Line Items] | ||
Reinsurance receivable | 2,400 | 2,500 |
Trust funded to support reinsurance receivable | 2,300 | |
Protective [Member] | ||
Ceded Credit Risk [Line Items] | ||
Reinsurance recoverables | 11,800 | 12,100 |
Trust funded to support reinsurance receivable | 14,700 | 13,700 |
Athene Holding Ltd. [Member] | ||
Ceded Credit Risk [Line Items] | ||
Reserves associated with modified coinsurance reinsurance arrangements | 6,900 | |
Letter of credit | 200 | |
Deposit assets | 6,600 | 7,500 |
Amount of amortization, after-tax, of deferred gain on business sold | 30 | $ 8 |
Athene Holding Ltd. [Member] | Trading Securities [Member] | ||
Ceded Credit Risk [Line Items] | ||
Deposit assets | 3,500 | |
Athene Holding Ltd. [Member] | AFS Securities [Member] | ||
Ceded Credit Risk [Line Items] | ||
Deposit assets | 2,300 | |
Athene Holding Ltd. [Member] | Commercial Loan [Member] | ||
Ceded Credit Risk [Line Items] | ||
Deposit assets | 698 | |
Athene Holding Ltd. [Member] | Derivative Instruments [Member] | ||
Ceded Credit Risk [Line Items] | ||
Deposit assets | 130 | |
Athene Holding Ltd. [Member] | Other Investments [Member] | ||
Ceded Credit Risk [Line Items] | ||
Deposit assets | 94 | |
Athene Holding Ltd. [Member] | Cash [Member] | ||
Ceded Credit Risk [Line Items] | ||
Deposit assets | 62 | |
Athene Holding Ltd. [Member] | Investment Income [Member] | ||
Ceded Credit Risk [Line Items] | ||
Deposit assets | 57 | |
Athene Holding Ltd. [Member] | Equity Securities [Member] | ||
Ceded Credit Risk [Line Items] | ||
Deposit assets | 14 | |
Athene Holding Ltd. [Member] | Ceded Credit Risk, Secured [Member] | ||
Ceded Credit Risk [Line Items] | ||
Reserves associated with modified coinsurance reinsurance arrangements | $ 201 |
Reinsurance (Reinsurance amount
Reinsurance (Reinsurance amounts recorded on the Consolidated Statement of Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reinsurance [Abstract] | |||
Direct insurance premiums and fee income | $ 13,347 | $ 11,882 | $ 10,103 |
Reinsurance assumed | 97 | 96 | 101 |
Reinsurance ceded | (1,920) | (1,883) | (1,817) |
Total insurance premiums and fee income | 11,524 | 10,095 | 8,387 |
Direct insurance benefits | 9,482 | 8,513 | 6,669 |
Reinsurance recoveries netted against benefits | (1,897) | (2,369) | (1,851) |
Total benefits | $ 7,585 | $ 6,144 | $ 4,818 |
Goodwill and Specifically Ide_3
Goodwill and Specifically Identifiable Intangible Assets (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill and Specifically Identifiable Intangible Assets [Abstract] | |||
Term for new business cash flows | 10 years | ||
Impairment of intangibles | $ 905 |
Goodwill and Specifically Ide_4
Goodwill and Specifically Identifiable Intangible Assets (Changes In Carrying Amount Of Goodwill, By Reportable Segment) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill [Roll Forward] | |||
Goodwill Gross | $ 3,934 | $ 3,520 | |
Accumulated impairment as of beginning-of-year | (2,152) | (2,152) | |
Acquisition accounting adjustments | $ (4) | 414 | |
Impairment | (905) | ||
Net goodwill as of end-of-year | 1,778 | 1,782 | |
Annuities Segment [Member] | |||
Goodwill [Roll Forward] | |||
Goodwill Gross | 1,040 | 1,040 | |
Accumulated impairment as of beginning-of-year | (600) | (600) | |
Impairment | |||
Net goodwill as of end-of-year | 440 | 440 | |
Retirement Plan Services Segment [Member] | |||
Goodwill [Roll Forward] | |||
Goodwill Gross | 20 | 20 | |
Impairment | |||
Net goodwill as of end-of-year | 20 | 20 | |
Life Insurance Segment [Member] | |||
Goodwill [Roll Forward] | |||
Goodwill Gross | 2,186 | 2,186 | |
Accumulated impairment as of beginning-of-year | (1,552) | (1,552) | |
Impairment | |||
Net goodwill as of end-of-year | 634 | 634 | |
Group Protection Segment [Member] | |||
Goodwill [Roll Forward] | |||
Goodwill Gross | 688 | $ 274 | |
Acquisition accounting adjustments | (4) | 414 | |
Impairment | |||
Net goodwill as of end-of-year | $ 684 | $ 688 |
Goodwill and Specifically Ide_5
Goodwill and Specifically Identifiable Intangible Assets (Schedule Of Intangible Assets By Reportable Segment) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Finite And Indefinife Lived Intangible Assets Net [Abstract] | |||
Gross carrying amount | $ 715 | $ 715 | |
Accumulated amortization | 82 | 56 | |
Life Insurance Segment [Member] | Sales Force [Member] | |||
Finite And Indefinife Lived Intangible Assets Net [Abstract] | |||
Gross carrying amount | 100 | 100 | |
Accumulated amortization | 55 | 51 | |
Retirement Plan Services Segment [Member] | Mutual Fund Contract Rights [Member] | |||
Finite And Indefinife Lived Intangible Assets Net [Abstract] | |||
Gross carrying amount | [1] | 5 | 5 |
Group Protection Segment [Member] | Insurance Licenses [Member] | |||
Finite And Indefinife Lived Intangible Assets Net [Abstract] | |||
Gross carrying amount | [1] | 3 | 3 |
Group Protection Segment [Member] | VOCRA [Member] | |||
Finite And Indefinife Lived Intangible Assets Net [Abstract] | |||
Gross carrying amount | 576 | 576 | |
Accumulated amortization | 25 | 5 | |
Group Protection Segment [Member] | VODA [Member] | |||
Finite And Indefinife Lived Intangible Assets Net [Abstract] | |||
Gross carrying amount | 31 | $ 31 | |
Accumulated amortization | $ 2 | ||
[1] | No amortization recorded as the intangible asset has indefinite life |
Goodwill and Specifically Ide_6
Goodwill and Specifically Identifiable Intangible Assets (Future estimated amortization of specifically identifiable intangible assets) (Details) $ in Millions | Dec. 31, 2019USD ($) |
Goodwill and Specifically Identifiable Intangible Assets [Abstract] | |
2020 | $ 37 |
2021 | 37 |
2022 | 37 |
2023 | 37 |
2024 | 37 |
Thereafter | $ 440 |
Guaranteed Benefit Features (Na
Guaranteed Benefit Features (Narrative) (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Guaranteed Benefit Features [Abstract] | |||
Percent of permanent life insurance in force | 35.00% | 33.00% | |
Percent of permanent life insurance sales | 27.00% | 36.00% | 27.00% |
Guaranteed Benefit Features (In
Guaranteed Benefit Features (Information On Guaranteed Death Benefit Features) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Return of Net Deposits [Member] | |||
Net Amount at Risk by Product and Guarantee [Line Items] | |||
Total account value | [1] | $ 101,601 | $ 89,783 |
Net amount at risk | [1],[2] | $ 71 | $ 1,002 |
Average attained age of contract holders | [1] | 65 years | 65 years |
Minimum Return [Member] | |||
Net Amount at Risk by Product and Guarantee [Line Items] | |||
Total account value | [1] | $ 92 | $ 88 |
Net amount at risk | [1],[2] | $ 13 | $ 18 |
Average attained age of contract holders | [1] | 77 years | 77 years |
Guaranteed minimum return | [1] | 5.00% | 5.00% |
Anniversary Contract Value [Member] | |||
Net Amount at Risk by Product and Guarantee [Line Items] | |||
Total account value | [1] | $ 25,763 | $ 23,365 |
Net amount at risk | [1],[2] | $ 384 | $ 2,007 |
Average attained age of contract holders | [1] | 71 years | 71 years |
[1] | Our variable contracts with guarantees may offer more than one type of guarantee in each contract; therefore, the amounts listed are not mutually exclusive. | ||
[2] | Represents the amount of death benefit in excess of the account balance that is subject to market fluctuations. |
Guaranteed Benefit Features (Su
Guaranteed Benefit Features (Summary Of Guaranteed Death Benefit Liabilities) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Guaranteed Benefit Features [Abstract] | |||
Balance as of beginning-of-year | $ 161 | $ 100 | $ 110 |
Changes in reserves | (24) | 77 | 8 |
Benefits paid | (20) | (16) | (18) |
Balance as of end-of-year | $ 117 | $ 161 | $ 100 |
Guaranteed Benefit Features (Ac
Guaranteed Benefit Features (Account Balances Of Variable Annuity Contracts With Guarantees Invested In Separate Accounts) (Details) - Variable Annuity [Member] - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Account Balances Of Variable Annuity Contracts With Guarantees Invested In Separate Accounts [Line Items] | ||
Total | $ 125,350 | $ 110,361 |
Percent of total variable annuity separate account values | 98.00% | 99.00% |
Domestic Equity [Member] | ||
Account Balances Of Variable Annuity Contracts With Guarantees Invested In Separate Accounts [Line Items] | ||
Total | $ 64,093 | $ 54,060 |
International Equity [Member] | ||
Account Balances Of Variable Annuity Contracts With Guarantees Invested In Separate Accounts [Line Items] | ||
Total | 19,852 | 18,359 |
Fixed Income [Member] | ||
Account Balances Of Variable Annuity Contracts With Guarantees Invested In Separate Accounts [Line Items] | ||
Total | $ 41,405 | $ 37,942 |
Liability For Unpaid Claims (Na
Liability For Unpaid Claims (Narrative) (Details) | Dec. 31, 2019 |
Minimum [Member] | |
Discount rate | 3.25% |
Maximum [Member] | |
Discount rate | 5.00% |
Liability For Unpaid Claims (Ch
Liability For Unpaid Claims (Changes In Liability For Unpaid Claims) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Liability For Unpaid Claims [Abstract] | ||||
Balance as of beginning-of-year | $ 5,335 | $ 2,222 | $ 2,242 | |
Reinsurance recoverable | 143 | 57 | 69 | |
Net balance as of beginning-of-year | 5,192 | 2,165 | 2,173 | |
Business acquired | [1] | 2,842 | ||
Incurred related to: | ||||
Current year | 3,193 | 2,531 | 1,346 | |
Interest | 151 | 120 | 69 | |
All other incurred | [2] | (308) | (208) | (76) |
Total incurred | 3,036 | 2,443 | 1,339 | |
Paid related to: | ||||
Current year | (1,518) | (1,197) | (798) | |
Prior years | (1,310) | (1,061) | (549) | |
Total paid | (2,828) | (2,258) | (1,347) | |
Net balance as of end-of-period | 5,400 | 5,192 | 2,165 | |
Reinsurance recoverable | 152 | 143 | 57 | |
Balance as of end-of-period | $ 5,552 | $ 5,335 | $ 2,222 | |
[1] | Represents acquired group life and disability reserves, net, as of May 1, 2018. See Note 3 for additional information. | |||
[2] | All other incurred is primarily impacted by the level of claim resolutions in the period compared to that which is expected by the reserve assumption. A negative number implies a favorable result where claim resolutions were more favorable than assumed. Our claim resolution rate assumption used in determining reserves is our expectation of the resolution rate we will experience over the long-term life of the block of claims. It will vary from actual experience in any one period, both favorably and unfavorably |
Short-Term and Long-Term Debt_2
Short-Term and Long-Term Debt (Narrative) (Details) | 12 Months Ended | |
Dec. 31, 2019USD ($) | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 4,222,000,000 | |
Non-operating indebtedness of subsidiaries to total capitalization, maximum | 7.50% | |
Five-year revolving credit facility [Member] | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 2,250,000,000 | |
Minimum consolidated net worth | $ 10,600,000,000 | |
Percentage of aggregate net proceeds of equity issuances | 50.00% | |
Debt to capital ratio (low end of range) | 0.35% | |
Debt to capital ratio (high end of range) | 1.00% | |
LOC facility due August 2031 [Member] | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 990,000,000 | [1] |
LOC facility due October 2031 [Member] | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | 982,000,000 | [1] |
9.76% Surplus Note, Due 2024 [Member] | ||
Debt Instrument [Line Items] | ||
Principal balance | $ 50,000,000 | |
Maturity date | Sep. 30, 2024 | |
Interest rate | 9.76% | |
6.56% Surplus Note, Due 2028 [Member] | ||
Debt Instrument [Line Items] | ||
Principal balance | $ 500,000,000 | |
Maturity date | Mar. 31, 2028 | |
Interest rate | 6.56% | |
Capital surplus repayment threshold | $ 2,300,000,000 | |
111 bps Surplus Note, Due 2028 [Member] | ||
Debt Instrument [Line Items] | ||
Principal balance | $ 71,000,000 | |
Maturity date | Sep. 24, 2028 | |
226 bps Surplus Note, Due 2028 [Member] | ||
Debt Instrument [Line Items] | ||
Principal balance | $ 287,000,000 | |
Surplus notes | $ 613,000,000 | |
Maturity date | Oct. 1, 2028 | |
6.03% Surplus Note, Due 2028 [Member] | ||
Debt Instrument [Line Items] | ||
Principal balance | $ 750,000,000 | |
Maturity date | Dec. 31, 2028 | |
Interest rate | 6.03% | |
Capital surplus repayment threshold | $ 2,400,000,000 | |
200 bps Surplus Note, Due 2035 [Member] | ||
Debt Instrument [Line Items] | ||
Principal balance | $ 30,000,000 | |
Maturity date | Sep. 28, 2035 | |
100 bps Surplus Note, Due 2037 [Member] | ||
Debt Instrument [Line Items] | ||
Principal balance | $ 375,000,000 | |
Surplus notes | $ 284,000,000 | |
Maturity date | Oct. 9, 2037 | |
155 bps Surplus Note, Due 2037 [Member] | ||
Debt Instrument [Line Items] | ||
Principal balance | $ 25,000,000 | |
Maturity date | Jun. 30, 2037 | |
4.20% Surplus Note, Due 2037 [Member] | ||
Debt Instrument [Line Items] | ||
Principal balance | $ 50,000,000 | |
Maturity date | Jul. 1, 2037 | |
Interest rate | 4.20% | |
4.50% Surplus Note, Due 2038 [Member] | ||
Debt Instrument [Line Items] | ||
Principal balance | $ 13,000,000 | |
Maturity date | Jun. 30, 2038 | |
Interest rate | 4.50% | |
4.225% Surplus Notes, Due 2037 [Member] | ||
Debt Instrument [Line Items] | ||
Principal balance | $ 28,000,000 | |
Maturity date | Oct. 9, 2037 | |
Interest rate | 4.225% | |
London Interbank Offered Rate (LIBOR) [Member] | 111 bps Surplus Note, Due 2028 [Member] | ||
Debt Instrument [Line Items] | ||
Variable rate | 1.11% | |
London Interbank Offered Rate (LIBOR) [Member] | 226 bps Surplus Note, Due 2028 [Member] | ||
Debt Instrument [Line Items] | ||
Variable rate | 2.26% | |
London Interbank Offered Rate (LIBOR) [Member] | 200 bps Surplus Note, Due 2035 [Member] | ||
Debt Instrument [Line Items] | ||
Variable rate | 2.00% | |
London Interbank Offered Rate (LIBOR) [Member] | 100 bps Surplus Note, Due 2037 [Member] | ||
Debt Instrument [Line Items] | ||
Variable rate | 1.00% | |
London Interbank Offered Rate (LIBOR) [Member] | 155 bps Surplus Note, Due 2037 [Member] | ||
Debt Instrument [Line Items] | ||
Variable rate | 1.55% | |
[1] | Our wholly-owned subsidiaries entered into irrevocable LOC facility agreements with third-party lenders supporting inter-company reinsurance agreements |
Short-Term and Long-Term Debt_3
Short-Term and Long-Term Debt (Schedule Of Debt) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Debt Instrument [Line Items] | |||
Short-term debt | [1] | $ 609 | $ 288 |
Total long-term debt | $ 2,414 | 2,401 | |
9.76% Surplus Note, Due 2024 [Member] | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 9.76% | ||
9.76% Surplus Note, Due 2024 [Member] | Long-term Debt [Member] | |||
Debt Instrument [Line Items] | |||
Surplus notes | $ 50 | 50 | |
Stated interest rate | 9.76% | ||
6.56% Surplus Note, Due 2028 [Member] | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 6.56% | ||
6.56% Surplus Note, Due 2028 [Member] | Long-term Debt [Member] | |||
Debt Instrument [Line Items] | |||
Surplus notes | $ 500 | 500 | |
Stated interest rate | 6.56% | ||
111 bps Surplus Note, Due 2028 [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||
Debt Instrument [Line Items] | |||
Variable rate | 1.11% | ||
111 bps Surplus Note, Due 2028 [Member] | Long-term Debt [Member] | |||
Debt Instrument [Line Items] | |||
Surplus notes | $ 71 | 71 | |
111 bps Surplus Note, Due 2028 [Member] | Long-term Debt [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||
Debt Instrument [Line Items] | |||
Variable rate | 1.11% | ||
226 bps Surplus Note, Due 2028 [Member] | |||
Debt Instrument [Line Items] | |||
Surplus notes | $ 613 | ||
226 bps Surplus Note, Due 2028 [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||
Debt Instrument [Line Items] | |||
Variable rate | 2.26% | ||
226 bps Surplus Note, Due 2028 [Member] | Long-term Debt [Member] | |||
Debt Instrument [Line Items] | |||
Surplus notes | $ 613 | 600 | |
226 bps Surplus Note, Due 2028 [Member] | Long-term Debt [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||
Debt Instrument [Line Items] | |||
Variable rate | 2.26% | ||
6.03% Surplus Note, Due 2028 [Member] | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 6.03% | ||
6.03% Surplus Note, Due 2028 [Member] | Long-term Debt [Member] | |||
Debt Instrument [Line Items] | |||
Surplus notes | $ 750 | 750 | |
Stated interest rate | 6.03% | ||
200 bps Surplus Note, Due 2035 [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||
Debt Instrument [Line Items] | |||
Variable rate | 2.00% | ||
200 bps Surplus Note, Due 2035 [Member] | Long-term Debt [Member] | |||
Debt Instrument [Line Items] | |||
Surplus notes | $ 30 | 30 | |
200 bps Surplus Note, Due 2035 [Member] | Long-term Debt [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||
Debt Instrument [Line Items] | |||
Variable rate | 2.00% | ||
155 bps Surplus Note, Due 2037 [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||
Debt Instrument [Line Items] | |||
Variable rate | 1.55% | ||
155 bps Surplus Note, Due 2037 [Member] | Long-term Debt [Member] | |||
Debt Instrument [Line Items] | |||
Surplus notes | $ 25 | 25 | |
155 bps Surplus Note, Due 2037 [Member] | Long-term Debt [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||
Debt Instrument [Line Items] | |||
Variable rate | 1.55% | ||
4.20% Surplus Note, Due 2037 [Member] | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 4.20% | ||
4.20% Surplus Note, Due 2037 [Member] | Long-term Debt [Member] | |||
Debt Instrument [Line Items] | |||
Surplus notes | $ 50 | 50 | |
Stated interest rate | 4.20% | ||
100 bps Surplus Note, Due 2037 [Member] | |||
Debt Instrument [Line Items] | |||
Surplus notes | $ 284 | ||
100 bps Surplus Note, Due 2037 [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||
Debt Instrument [Line Items] | |||
Variable rate | 1.00% | ||
100 bps Surplus Note, Due 2037 [Member] | Long-term Debt [Member] | |||
Debt Instrument [Line Items] | |||
Surplus notes | $ 284 | 312 | |
100 bps Surplus Note, Due 2037 [Member] | Long-term Debt [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||
Debt Instrument [Line Items] | |||
Variable rate | 1.00% | ||
4.225% Surplus Notes, Due 2037 [Member] | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 4.225% | ||
4.225% Surplus Notes, Due 2037 [Member] | Long-term Debt [Member] | |||
Debt Instrument [Line Items] | |||
Surplus notes | $ 28 | ||
Stated interest rate | 4.225% | ||
4.50% Surplus Note, Due 2038 [Member] | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 4.50% | ||
4.50% Surplus Note, Due 2038 [Member] | Long-term Debt [Member] | |||
Debt Instrument [Line Items] | |||
Surplus notes | $ 13 | $ 13 | |
Stated interest rate | 4.50% | ||
[1] | The short-term debt represents short-term notes payable to LNC. |
Short-Term and Long-Term Debt_4
Short-Term and Long-Term Debt (Future Principal Payments) (Details) $ in Millions | Dec. 31, 2019USD ($) |
Future principal payments due on long-term debt [Abstract] | |
2020 | |
2021 | |
2022 | |
2023 | |
2024 | 50 |
Thereafter | 2,364 |
Total | $ 2,414 |
Short-Term and Long-Term Debt_5
Short-Term and Long-Term Debt (Credit Facilities and Letters of Credit) (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2019USD ($) | ||
Line of Credit Facility [Line Items] | ||
Credit Facilities | Total | |
Maximum Available | $ 4,222 | |
LOCs issued | $ 2,287 | |
Five-year revolving credit facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Credit Facilities | Five-year revolving credit facility | |
Expiration Date | Jul. 31, 2024 | |
Maximum Available | $ 2,250 | |
LOCs issued | $ 340 | |
LOC facility due August 2031 [Member] | ||
Line of Credit Facility [Line Items] | ||
Credit Facilities | LOC facility (1) | [1] |
Expiration Date | Aug. 26, 2031 | [1] |
Maximum Available | $ 990 | [1] |
LOCs issued | $ 965 | [1] |
LOC facility due October 2031 [Member] | ||
Line of Credit Facility [Line Items] | ||
Credit Facilities | LOC facility (1) | [1] |
Expiration Date | Oct. 1, 2031 | [1] |
Maximum Available | $ 982 | [1] |
LOCs issued | $ 982 | [1] |
[1] | Our wholly-owned subsidiaries entered into irrevocable LOC facility agreements with third-party lenders supporting inter-company reinsurance agreements |
Contingencies And Commitments_2
Contingencies And Commitments (Narrative) (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($)contract | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Loss Contingencies [Line Items] | |||
Operating lease ROU asset | $ 202 | ||
Operating lease liability | $ 208 | ||
Weighted average discount rate, operating lease | 3.20% | ||
Weighted average remaining operating lease term | 6 years | ||
Operating lease expense | $ 46 | $ 43 | $ 36 |
Sale-leaseback transactions, net | 128 | ||
Total accumulated amortization related to sales leaseback transaction | $ 345 | ||
Weighted average discount rate, finance lease | 2.20% | ||
Weighted average remaining finance lease term | 2 years | ||
Number of leases not yet commenced | contract | 0 | ||
Loss contingency accrual, insurance-related assessment, premium tax offset | $ (13) | $ (18) | |
Maximum [Member] | Pending Litigation [Member] | |||
Loss Contingencies [Line Items] | |||
Loss contingency, estimate | $ 90 |
Contingencies And Commitments_3
Contingencies And Commitments (Finance Lease Expense) (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2019USD ($) | ||
Contingencies and Commitments [Abstract] | ||
Amortization of ROU assets | $ 67 | [1] |
Interest on lease liabilities | 13 | [2] |
Total | $ 80 | |
[1] | Amortization of ROU assets is reported in commissions and other expenses on our Consolidated Statements of Comprehensive Income (Loss). | |
[2] | Interest on lease liabilities is reported in interest and debt expense on our Consolidated Statements of Comprehensive Income (Loss). |
Contingencies And Commitments_4
Contingencies And Commitments (Cash Flow Information Related To Leases) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Contingencies and Commitments [Abstract] | |
Operating cash flows from operating leases | $ 47 |
Financing cash flows from finance leases | 96 |
Operating leases | $ 78 |
Contingencies And Commitments_5
Contingencies And Commitments (Future Minimum Lease Payments) (Details) $ in Millions | Dec. 31, 2019USD ($) |
Operating Leases | |
2020 | $ 44 |
2021 | 40 |
2022 | 35 |
2023 | 32 |
2024 | 26 |
Thereafter | 65 |
Total future minimum lease payments | 242 |
Less: Amount representing interest | 34 |
Present value of minimum lease payments | 208 |
Finance Leases | |
2020 | 56 |
2021 | 66 |
2022 | 66 |
2023 | 90 |
2024 | 17 |
Thereafter | 12 |
Total future minimum lease payments | 307 |
Less: Amount representing interest | 26 |
Present value of minimum lease payments | $ 281 |
Shares and Stockholder's Equi_3
Shares and Stockholder's Equity (Components And Changes In Accumulated OCI) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance as of beginning-of-year | $ 659 | ||
(Increases) attributable to: | |||
Change in DAC, VOBA, DSI and DFEL | 1 | ||
Less: | |||
Balance as of end-of-year | 5,836 | $ 659 | |
Unrealized Gain (Loss) on AFS Securities [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance as of beginning-of-year | 536 | 3,283 | $ 1,687 |
Cumulative effect from adoption of new accounting standard | 634 | ||
Unrealized holding gains (losses) arising during the period | 8,856 | (5,995) | 2,872 |
Change in foreign currency exchange rate adjustment | 46 | (107) | 134 |
Change in DAC, VOBA, DSI, future contract benefits and other contract holder funds | (2,460) | 1,748 | (703) |
Income tax benefit (expense) | (1,370) | 923 | (745) |
Less: | |||
Reclassification adjustment for gains (losses) included in net income (loss) | (26) | (44) | (40) |
Associated amortization of DAC, VOBA, DSI, and DFEL | (11) | (19) | (19) |
Income tax benefit (expense) | 8 | 13 | 21 |
Less: | |||
Balance as of end-of-year | 5,637 | 536 | 3,283 |
Unrealized OTTI on AFS Securities [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance as of beginning-of-year | 29 | 39 | 22 |
Cumulative effect from adoption of new accounting standard | 9 | ||
(Increases) attributable to: | |||
Gross OTTI recognized in OCI during the period | (14) | ||
Change in DAC, VOBA, DSI and DFEL | 1 | ||
Income tax benefit (expense) | 3 | ||
Decreases attributable to | |||
Changes in fair value, sales, maturities or other settlements of AFS securities | 30 | (18) | 34 |
Change in DAC, VOBA, DSI, and DFEL | (2) | (5) | (7) |
Income tax benefit (expense) | (7) | 4 | (10) |
Less: | |||
Balance as of end-of-year | 40 | 29 | 39 |
Unrealized Gain (Loss) on Derivative Instruments [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance as of beginning-of-year | 119 | 27 | 93 |
Cumulative effect from adoption of new accounting standard | 6 | ||
Unrealized holding gains (losses) arising during the period | 181 | 40 | 63 |
Change in foreign currency exchange rate adjustment | (52) | 111 | (137) |
Decreases attributable to | |||
Change in DAC, VOBA, DSI and DFEL | (5) | (14) | 1 |
Income tax benefit (expense) | (26) | (29) | 26 |
Less: | |||
Reclassification adjustment for gains (losses) included in net income (loss) | 47 | 31 | 31 |
Associated amortization of DAC, VOBA, DSI and DFEL | (2) | (3) | (2) |
Income tax benefit (expense) | (9) | (6) | (10) |
Balance as of end-of-year | 181 | 119 | 27 |
Funded Status of Employee Benefit Plans [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance as of beginning-of-year | (25) | (22) | (20) |
Cumulative effect from adoption of new accounting standard | (5) | ||
Less: | |||
Adjustment arising during the period | 4 | 3 | (4) |
Income tax benefit (expense) | (1) | (1) | 2 |
Balance as of end-of-year | $ (22) | $ (25) | $ (22) |
Shares And Stockholder's Equi_4
Shares And Stockholder's Equity (Schedule of Reclassifications Out Of AOCI) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net investment income | $ 4,962 | $ 4,844 | $ 4,760 |
Total realized gain (loss) | (828) | (92) | (456) |
Commissions and other expenses | (5,065) | (4,583) | (3,967) |
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) | (26) | (44) | (40) |
Reclassifications before income tax benefit (expense) | (37) | (63) | (59) |
Income tax benefit (expense) | 8 | 13 | 21 |
Reclassifications, net of income tax | (29) | (50) | (38) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Unrealized Gain (Loss) on AFS Securities [Member] | Associated amortization of DAC, VOBA, DSI and DFEL [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Total realized gain (loss) | (11) | (19) | (19) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Unrealized OTTI on AFS Securities [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Total realized gain (loss) | 4 | 7 | 5 |
Reclassifications before income tax benefit (expense) | 4 | 7 | 4 |
Income tax benefit (expense) | (1) | (1) | (1) |
Reclassifications, net of income tax | 3 | 6 | 3 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Unrealized OTTI on AFS Securities [Member] | Change In DAC, VOBA, DSI, And DFEL [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Total realized gain (loss) | (1) | ||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Unrealized Gain (Loss) on Derivative Instruments [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Total gross reclassifications | 47 | 31 | 31 |
Reclassifications before income tax benefit (expense) | 45 | 28 | 29 |
Income tax benefit (expense) | (9) | (6) | (10) |
Reclassifications, net of income tax | 36 | 22 | 19 |
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 | 3 | 4 | 4 |
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 | 35 | 27 | 18 |
Total realized gain (loss) | 9 | 9 | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Unrealized Gain (Loss) on Derivative Instruments [Member] | Change In DAC, VOBA, DSI, And DFEL [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Commissions and other expenses | $ (2) | $ (3) | $ (2) |
Commissions and Other Expense_2
Commissions and Other Expenses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Details underlying commissions and other expenses [Abstract] | |||
Commissions | $ 2,566 | $ 2,271 | $ 1,998 |
General and administrative expenses | 2,152 | 1,910 | 1,715 |
Expenses associated with reserve financing and unrelated LOCs | 52 | 64 | 57 |
DAC and VOBA deferrals and interest, net of amortization | (586) | (436) | (390) |
Broker-dealer expenses | 372 | 358 | 329 |
Specifically identifiable intangible asset amortization | 26 | 9 | 4 |
Taxes, licenses and fees | 353 | 322 | 254 |
Acquisition and integration costs related to mergers and acquisitions | 130 | 85 | |
Total | $ 5,065 | $ 4,583 | $ 3,967 |
Retirement and Deferred Compe_3
Retirement and Deferred Compensation Plans (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement [Abstract] | |||
Pension contributions | $ 8 | ||
Net periodic benefit expense (recovery) | 6 | $ 6 | $ 5 |
Expected benefit payments in the next fiscal year | 10 | ||
Defined contribution plans expense | 101 | 90 | 85 |
Deferred compensation plans expense | 22 | 12 | 27 |
Other Postretirement Benefit Plans [Member] | |||
Statement [Abstract] | |||
Benefit expense | $ 10 | $ (4) | $ 7 |
Retirement and Deferred Compe_4
Retirement and Deferred Compensation Plans (Benefit Plans' Assets and Obligations) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 118 | $ 115 |
Pension Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 109 | 107 |
Projected benefit obligation | 115 | 112 |
Funded status | (6) | (5) |
Amounts Recognized on the Consolidated Balance Sheets | ||
Other liabilities | (6) | (5) |
Net amount recognized | $ (6) | $ (5) |
Weighted-Average Assumptions, Benefit obligations: | ||
Weighted-average discount rate | 3.50% | 4.50% |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | ||
Weighted-average discount rate | 4.50% | 4.00% |
Expected return on plan assets | 4.50% | 4.50% |
Other Postretirement Benefits Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 9 | $ 8 |
Projected benefit obligation | 10 | 10 |
Funded status | (1) | (2) |
Amounts Recognized on the Consolidated Balance Sheets | ||
Other liabilities | (1) | (2) |
Net amount recognized | $ (1) | $ (2) |
Weighted-Average Assumptions, Benefit obligations: | ||
Weighted-average discount rate | 3.50% | 4.50% |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | ||
Weighted-average discount rate | 4.50% | 4.00% |
Expected return on plan assets | 6.50% | 6.50% |
Retirement and Deferred Compe_5
Retirement and Deferred Compensation Plans (Fair Value of Benefit Plan Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value of Benefit Plans' Assets [Abstract] | ||
Fair value of plan assets | $ 118 | $ 115 |
Corporate Bonds [Member] | ||
Fair Value of Benefit Plans' Assets [Abstract] | ||
Fair value of plan assets | 1 | |
U.S. Government Bonds [Member] | ||
Fair Value of Benefit Plans' Assets [Abstract] | ||
Fair value of plan assets | 83 | 87 |
Cash And Invested Cash [Member] | ||
Fair Value of Benefit Plans' Assets [Abstract] | ||
Fair value of plan assets | 26 | 19 |
Other Investments [Member] | ||
Fair Value of Benefit Plans' Assets [Abstract] | ||
Fair value of plan assets | $ 9 | $ 8 |
Retirement and Deferred Compe_6
Retirement and Deferred Compensation Plans (Deferred Compensation Plans Liabilities and Investment) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Contribution Pension and Other Postretirement Plans Disclosure [Abstract] | |||
Total liabilities | [1] | $ 579 | $ 487 |
Investments dedicated to fund liabilities | [2] | $ 202 | $ 170 |
[1] | Reported in other liabilities on our Consolidated Balance Sheets. | ||
[2] | Reported in other assets on our Consolidated Balance Sheets. |
Stock-Based Incentive Compens_3
Stock-Based Incentive Compensation Plans (Compensation Expense By Award Type) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Employee service share-based compensation, aggregate disclosures [Abstract] | |||
Compensation expense | $ 59 | $ 48 | $ 47 |
Recognized tax benefit | 12 | 10 | 16 |
Stock Options [Member] | |||
Employee service share-based compensation, aggregate disclosures [Abstract] | |||
Compensation expense | 8 | 5 | 9 |
Performance Shares [Member] | |||
Employee service share-based compensation, aggregate disclosures [Abstract] | |||
Compensation expense | 16 | 14 | 12 |
SARs [Member] | |||
Employee service share-based compensation, aggregate disclosures [Abstract] | |||
Compensation expense | (1) | 2 | |
RSU's [Member] | |||
Employee service share-based compensation, aggregate disclosures [Abstract] | |||
Compensation expense | $ 35 | $ 30 | $ 24 |
Statutory Information and Res_3
Statutory Information and Restrictions (Narrative) (Details) $ in Millions | Dec. 31, 2019USD ($) |
Statutory accounting practices [Line Items] | |
RBC Ratio Company Action Level Low End | 75.00% |
RBC Ratio Company Action Level High End | 100.00% |
Amount of dividends that could be paid in the next year without prior approval | $ 815 |
INDIANA | |
Statutory accounting practices [Line Items] | |
Statutory limitation as percentage of insurer contract holder surplus | 10.00% |
NEW YORK | |
Statutory accounting practices [Line Items] | |
Statutory limitation as percentage of insurer contract holder surplus | 10.00% |
Statutory Information and Res_4
Statutory Information and Restrictions (Statutory Capital and Surplus) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Statutory Information and Restrictions [Abstract] | ||
U.S. capital and surplus | $ 8,425 | $ 8,330 |
Statutory Information and Res_5
Statutory Information and Restrictions (Net Gain (Loss) From Operations, Net Income Loss, Dividends to LNC Holding Company) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statutory Information and Restrictions [Abstract] | |||
U.S. net gain (loss) from operations, after-tax | $ 379 | $ 686 | $ 1,312 |
U.S. net income (loss) | 359 | 1,013 | 1,452 |
U.S. dividends to LNC holding company | $ 600 | $ 910 | $ 954 |
Statutory Information and Res_6
Statutory Information and Restrictions (Effects On statutory Surplus Compared To NAIC Statutory Surplus) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Calculation of reserves using the Indiana universal life method [Member] | |||
Statutory accounting practices [Line Items] | |||
Effects on statutory surplus compared to NAIC statutory surplus from the use of prescribed and permitted practices | $ 24 | $ 36 | |
Conservative valuation rate on certain variable annuities [Member] | |||
Statutory accounting practices [Line Items] | |||
Effects on statutory surplus compared to NAIC statutory surplus from the use of prescribed and permitted practices | (49) | (55) | |
Lesser of LOC and XXX additional reserve as surplus [Member] | |||
Statutory accounting practices [Line Items] | |||
Effects on statutory surplus compared to NAIC statutory surplus from the use of prescribed and permitted practices | [1] | 1,947 | 1,959 |
LLC Notes And Variable Value Surplus Notes [Member] | |||
Statutory accounting practices [Line Items] | |||
Effects on statutory surplus compared to NAIC statutory surplus from the use of prescribed and permitted practices | [1] | 1,648 | 1,634 |
Excess Of Loss Reinsurance Treaties [Member] | |||
Statutory accounting practices [Line Items] | |||
Effects on statutory surplus compared to NAIC statutory surplus from the use of prescribed and permitted practices | [1] | $ 419 | $ 330 |
[1] | These permitted practices are related to structures that continue to be allowed in accordance with the grandfathered structures under the provisions of AG48 or are compliant under AG48 requirements. |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Narrative) (Details) - Fair Value, Nonrecurring [Member] - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | $ 0 | $ 0 |
Liabilities measured at fair value | $ 0 | $ 0 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments (Carrying and Estimated Fair Values of Financial Instruments) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Assets | |||
Fixed maturity AFS securities | $ 103,773 | $ 92,787 | |
Trading securities | 4,602 | 1,869 | |
Equity securities | 103 | 99 | |
Mortgage loans on real estate | 16,244 | 13,190 | |
Derivative investments | 1,911 | 1,081 | |
Other investments | 2,565 | 1,962 | |
Other contract holder funds: | |||
Benefit Plans' Assets | 118 | 115 | |
Carrying Value [Member] | |||
Assets | |||
Trading securities | 4,602 | 1,869 | |
Equity securities | 103 | 99 | |
Mortgage loans on real estate | 16,244 | 13,190 | |
Derivative investments | [1] | 1,911 | 1,081 |
Other investments | 2,554 | 1,951 | |
Cash and invested cash | 1,879 | 1,848 | |
Reinsurance related embedded derivatives | 188 | ||
Indexed annuity ceded embedded derivatives | 927 | 902 | |
Separate account assets | 153,571 | 132,833 | |
Other contract holder funds: | |||
Remaining guaranteed interest and similar contracts | (1,900) | (542) | |
Account values of certain investment contracts | (38,606) | (34,500) | |
Short-term debt | (609) | (288) | |
Long-term debt | (2,414) | (2,401) | |
Reinsurance related embedded derivatives | (375) | ||
Benefit Plans' Assets | [2] | 118 | 115 |
Fair Value [Member] | |||
Assets | |||
Trading securities | 4,602 | 1,869 | |
Equity securities | 103 | 99 | |
Mortgage loans on real estate | 16,774 | 13,020 | |
Derivative investments | [1] | 1,911 | 1,081 |
Other investments | 2,554 | 1,951 | |
Cash and invested cash | 1,879 | 1,848 | |
Reinsurance related embedded derivatives | 188 | ||
Indexed annuity ceded embedded derivatives | 927 | 902 | |
Separate account assets | 153,571 | 132,833 | |
Other contract holder funds: | |||
Remaining guaranteed interest and similar contracts | (1,900) | (542) | |
Account values of certain investment contracts | (46,781) | (36,321) | |
Short-term debt | (609) | (288) | |
Long-term debt | (2,714) | (2,519) | |
Reinsurance related embedded derivatives | (375) | ||
Benefit Plans' Assets | [2] | 118 | 115 |
Fixed Maturity Securities [Member] | Carrying Value [Member] | |||
Assets | |||
Fixed maturity AFS securities | 103,773 | 92,787 | |
Fixed Maturity Securities [Member] | Fair Value [Member] | |||
Assets | |||
Fixed maturity AFS securities | 103,773 | 92,787 | |
GLB Direct Embedded Derivatives [Member] | Carrying Value [Member] | |||
Assets | |||
Other assets - GLB embedded derivatives | 450 | 123 | |
GLB Direct Embedded Derivatives [Member] | Fair Value [Member] | |||
Assets | |||
Other assets - GLB embedded derivatives | 450 | 123 | |
GLB Ceded Embedded Derivatives [Member] | Carrying Value [Member] | |||
Assets | |||
Other assets - GLB embedded derivatives | 60 | 72 | |
GLB Ceded Embedded Derivatives [Member] | Fair Value [Member] | |||
Assets | |||
Other assets - GLB embedded derivatives | 60 | 72 | |
Future Contract Benefits [Member] | Carrying Value [Member] | |||
Future contract benefits: | |||
Indexed annuity and IUL contracts embedded derivatives | (2,585) | (1,305) | |
Future Contract Benefits [Member] | Fair Value [Member] | |||
Future contract benefits: | |||
Indexed annuity and IUL contracts embedded derivatives | (2,585) | (1,305) | |
Other Liabilities [Member] | |||
Other contract holder funds: | |||
Other liabilities - derivative liabilities | (238) | ||
Other Liabilities [Member] | Carrying Value [Member] | |||
Other contract holder funds: | |||
Other liabilities - derivative liabilities | [1] | (238) | (226) |
Other Liabilities [Member] | Fair Value [Member] | |||
Other contract holder funds: | |||
Other liabilities - derivative liabilities | [1] | (238) | (226) |
Other Liabilities [Member] | GLB Ceded Embedded Derivatives [Member] | Carrying Value [Member] | |||
Other contract holder funds: | |||
Other liabilities - GLB embedded derivatives | (510) | (196) | |
Other Liabilities [Member] | GLB Ceded Embedded Derivatives [Member] | Fair Value [Member] | |||
Other contract holder funds: | |||
Other liabilities - GLB embedded derivatives | $ (510) | $ (196) | |
[1] | We have master netting agreements with each of our derivative counterparties, which allow for the netting of our derivative asset and liability positions by counterparty. | ||
[2] | Included in the funded statuses of the benefit plans, which is reported in other liabilities on our Consolidated Balance Sheets. Refer to Note 17 for information regarding our benefit plans. |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments (Fair Value Of Assets And Liabilities On A Recurring Basis) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Fair value of plan assets | $ 118 | $ 115 | |
Fair Value, Recurring [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 268,178 | 232,028 | |
Liabilities measured at fair value | (4,621) | (1,986) | |
Fair value of plan assets | 118 | 115 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Recurring [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 1,187 | 1,158 | |
Significant Observable Inputs (Level 2) [Member] | Fair Value, Recurring [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 255,692 | 222,998 | |
Liabilities measured at fair value | (659) | (314) | |
Fair value of plan assets | 118 | 115 | |
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Recurring [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 11,299 | 7,872 | |
Liabilities measured at fair value | (3,962) | (1,672) | |
Corporate Bonds [Member] | Fixed Maturity Securities [Member] | Fair Value, Recurring [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 87,779 | 79,549 | |
Corporate Bonds [Member] | Significant Observable Inputs (Level 2) [Member] | Fixed Maturity Securities [Member] | Fair Value, Recurring [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 80,801 | 73,897 | |
Corporate Bonds [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fixed Maturity Securities [Member] | Fair Value, Recurring [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 6,978 | 5,652 | |
U.S. Government Bonds [Member] | Fixed Maturity Securities [Member] | Fair Value, Recurring [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 403 | 386 | |
U.S. Government Bonds [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fixed Maturity Securities [Member] | Fair Value, Recurring [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 391 | 368 | |
U.S. Government Bonds [Member] | Significant Observable Inputs (Level 2) [Member] | Fixed Maturity Securities [Member] | Fair Value, Recurring [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 7 | 18 | |
U.S. Government Bonds [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fixed Maturity Securities [Member] | Fair Value, Recurring [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 5 | ||
Foreign Government Bonds [Member] | Fixed Maturity Securities [Member] | Fair Value, Recurring [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 388 | 444 | |
Foreign Government Bonds [Member] | Significant Observable Inputs (Level 2) [Member] | Fixed Maturity Securities [Member] | Fair Value, Recurring [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 298 | 335 | |
Foreign Government Bonds [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fixed Maturity Securities [Member] | Fair Value, Recurring [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 90 | 109 | |
RMBS [Member] | Fixed Maturity Securities [Member] | Fair Value, Recurring [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 3,008 | 3,164 | |
RMBS [Member] | Significant Observable Inputs (Level 2) [Member] | Fixed Maturity Securities [Member] | Fair Value, Recurring [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 2,997 | 3,157 | |
RMBS [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fixed Maturity Securities [Member] | Fair Value, Recurring [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 11 | 7 | |
CMBS [Member] | Fixed Maturity Securities [Member] | Fair Value, Recurring [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 1,083 | 803 | |
CMBS [Member] | Significant Observable Inputs (Level 2) [Member] | Fixed Maturity Securities [Member] | Fair Value, Recurring [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 1,082 | 801 | |
CMBS [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fixed Maturity Securities [Member] | Fair Value, Recurring [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 1 | 2 | |
CLOs [Member] | Fixed Maturity Securities [Member] | Fair Value, Recurring [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 4,883 | 2,678 | |
CLOs [Member] | Significant Observable Inputs (Level 2) [Member] | Fixed Maturity Securities [Member] | Fair Value, Recurring [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 4,615 | 2,544 | |
CLOs [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fixed Maturity Securities [Member] | Fair Value, Recurring [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 268 | 134 | |
State And Municipal Bonds [Member] | Fixed Maturity Securities [Member] | Fair Value, Recurring [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 5,685 | 5,184 | |
State And Municipal Bonds [Member] | Significant Observable Inputs (Level 2) [Member] | Fixed Maturity Securities [Member] | Fair Value, Recurring [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 5,685 | 5,184 | |
Hybrid And Redeemable Preferred Securities [Member] | Fixed Maturity Securities [Member] | Fair Value, Recurring [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 544 | 579 | |
Hybrid And Redeemable Preferred Securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fixed Maturity Securities [Member] | Fair Value, Recurring [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 77 | 66 | |
Hybrid And Redeemable Preferred Securities [Member] | Significant Observable Inputs (Level 2) [Member] | Fixed Maturity Securities [Member] | Fair Value, Recurring [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 389 | 438 | |
Hybrid And Redeemable Preferred Securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fixed Maturity Securities [Member] | Fair Value, Recurring [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 78 | 75 | |
Trading Securities [Member] | Fair Value, Recurring [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 4,602 | 1,869 | |
Trading Securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Recurring [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 50 | 43 | |
Trading Securities [Member] | Significant Observable Inputs (Level 2) [Member] | Fair Value, Recurring [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 3,886 | 1,759 | |
Trading Securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Recurring [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 666 | 67 | |
Equity Securities [Member] | Fair Value, Recurring [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 103 | 99 | |
Equity Securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Recurring [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 25 | 16 | |
Equity Securities [Member] | Significant Observable Inputs (Level 2) [Member] | Fair Value, Recurring [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 48 | 58 | |
Equity Securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Recurring [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 30 | 25 | |
Derivative Investments [Member] | Fair Value, Recurring [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | [1] | 2,824 | 1,340 |
Derivative Investments [Member] | Significant Observable Inputs (Level 2) [Member] | Fair Value, Recurring [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | [1] | 1,089 | 636 |
Derivative Investments [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Recurring [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | [1] | 1,735 | 704 |
Cash And Invested Cash [Member] | Fair Value, Recurring [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 1,879 | 1,848 | |
Cash And Invested Cash [Member] | Significant Observable Inputs (Level 2) [Member] | Fair Value, Recurring [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 1,879 | 1,848 | |
GLB Direct Embedded Derivatives [Member] | Other Assets [Member] | Fair Value, Recurring [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 450 | 123 | |
GLB Direct Embedded Derivatives [Member] | Significant Unobservable Inputs (Level 3) [Member] | Other Assets [Member] | Fair Value, Recurring [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 450 | 123 | |
GLB Ceded Embedded Derivatives [Member] | Other Assets [Member] | Fair Value, Recurring [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 60 | 72 | |
GLB Ceded Embedded Derivatives [Member] | Other Liabilities [Member] | Fair Value, Recurring [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Liabilities measured at fair value | (510) | (196) | |
GLB Ceded Embedded Derivatives [Member] | Significant Unobservable Inputs (Level 3) [Member] | Other Assets [Member] | Fair Value, Recurring [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 60 | 72 | |
GLB Ceded Embedded Derivatives [Member] | Significant Unobservable Inputs (Level 3) [Member] | Other Liabilities [Member] | Fair Value, Recurring [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Liabilities measured at fair value | (510) | (196) | |
Indexed Annuity And IUL Contracts [Member] | Other Assets [Member] | Fair Value, Recurring [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 927 | 902 | |
Indexed Annuity And IUL Contracts [Member] | Future Contract Benefits [Member] | Fair Value, Recurring [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Liabilities measured at fair value | (2,585) | (1,305) | |
Indexed Annuity And IUL Contracts [Member] | Significant Unobservable Inputs (Level 3) [Member] | Other Assets [Member] | Fair Value, Recurring [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 927 | 902 | |
Indexed Annuity And IUL Contracts [Member] | Significant Unobservable Inputs (Level 3) [Member] | Future Contract Benefits [Member] | Fair Value, Recurring [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Liabilities measured at fair value | (2,585) | (1,305) | |
Separate Account Assets [Member] | Fair Value, Recurring [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 153,560 | 132,800 | |
Separate Account Assets [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Recurring [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 644 | 665 | |
Separate Account Assets [Member] | Significant Observable Inputs (Level 2) [Member] | Fair Value, Recurring [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 152,916 | 132,135 | |
Reinsurance Related Embedded Derivatives [Member] | Fair Value, Recurring [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 188 | ||
Liabilities measured at fair value | (375) | ||
Reinsurance Related Embedded Derivatives [Member] | Significant Observable Inputs (Level 2) [Member] | Fair Value, Recurring [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 188 | ||
Liabilities measured at fair value | (375) | ||
Derivative Liabilities [Member] | Other Liabilities [Member] | Fair Value, Recurring [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Liabilities measured at fair value | [1] | (1,151) | (485) |
Derivative Liabilities [Member] | Significant Observable Inputs (Level 2) [Member] | Other Liabilities [Member] | Fair Value, Recurring [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Liabilities measured at fair value | [1] | (284) | (314) |
Derivative Liabilities [Member] | Significant Unobservable Inputs (Level 3) [Member] | Other Liabilities [Member] | Fair Value, Recurring [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Liabilities measured at fair value | [1] | $ (867) | $ (171) |
[1] | Derivative investment assets and liabilities are presented within the fair value hierarchy on a gross basis by derivative type and not on a master netting basis by counterparty |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments (Fair Value Measured On A Recurring Basis Reconciliation) (Details) - USD ($) $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||||
Level 3 Unobservable Input Reconciliation | |||||||
Beginning Fair Value | $ 6,200 | $ 4,509 | $ 4,117 | ||||
Items Included in Net Income | (723) | 252 | (407) | ||||
Gains (Losses) in OCI and Other | [1] | 351 | (274) | 345 | |||
Issuances, Sales, Maturities, Settlements, Calls, Net | 2,331 | [2] | 2,164 | 268 | |||
Transfers Into or Out of Level 3, Net | [4] | (822) | [3] | (451) | 186 | ||
Ending Fair Value | 7,337 | 6,200 | 4,509 | ||||
Corporate Bonds [Member] | Fixed Maturity Securities [Member] | |||||||
Level 3 Unobservable Input Reconciliation | |||||||
Beginning Fair Value | [5] | 5,652 | 5,350 | 4,809 | |||
Items Included in Net Income | [5] | 3 | 10 | 17 | |||
Gains (Losses) in OCI and Other | [1],[5] | 177 | (198) | 199 | |||
Issuances, Sales, Maturities, Settlements, Calls, Net | [5] | 1,195 | [2] | 542 | (45) | ||
Transfers Into or Out of Level 3, Net | [4],[5] | (49) | [3] | (52) | 370 | ||
Ending Fair Value | [5] | 6,978 | 5,652 | 5,350 | |||
Corporate Bonds [Member] | Fixed Maturity Securities [Member] | Liberty Transaction [Member] | |||||||
Level 3 Unobservable Input Reconciliation | |||||||
Issuances, Sales, Maturities, Settlements, Calls, Net | 67 | ||||||
U.S. Government Bonds [Member] | Fixed Maturity Securities [Member] | |||||||
Level 3 Unobservable Input Reconciliation | |||||||
Beginning Fair Value | [5] | 5 | |||||
Issuances, Sales, Maturities, Settlements, Calls, Net | [5] | (5) | |||||
Transfers Into or Out of Level 3, Net | [4] | 5 | [3] | 5 | [5] | ||
Ending Fair Value | 5 | 5 | [5] | ||||
Foreign Government Bonds [Member] | Fixed Maturity Securities [Member] | |||||||
Level 3 Unobservable Input Reconciliation | |||||||
Beginning Fair Value | [5] | 109 | 110 | 111 | |||
Items Included in Net Income | [5] | ||||||
Gains (Losses) in OCI and Other | [1],[5] | 6 | (1) | (1) | |||
Issuances, Sales, Maturities, Settlements, Calls, Net | [2],[5] | (25) | |||||
Transfers Into or Out of Level 3, Net | [3],[4],[5] | ||||||
Ending Fair Value | [5] | 90 | 109 | 110 | |||
RMBS [Member] | Fixed Maturity Securities [Member] | |||||||
Level 3 Unobservable Input Reconciliation | |||||||
Beginning Fair Value | [5] | 7 | 12 | 3 | |||
Items Included in Net Income | [5] | ||||||
Gains (Losses) in OCI and Other | [1],[5] | ||||||
Issuances, Sales, Maturities, Settlements, Calls, Net | [5] | 21 | [2] | 7 | 19 | ||
Transfers Into or Out of Level 3, Net | [4],[5] | (17) | [3] | (12) | (10) | ||
Ending Fair Value | [5] | 11 | 7 | 12 | |||
CMBS [Member] | Fixed Maturity Securities [Member] | |||||||
Level 3 Unobservable Input Reconciliation | |||||||
Beginning Fair Value | [5] | 2 | 6 | 7 | |||
Items Included in Net Income | [5] | 1 | |||||
Gains (Losses) in OCI and Other | [1],[5] | 1 | |||||
Issuances, Sales, Maturities, Settlements, Calls, Net | [5] | 5 | [2] | 35 | 54 | ||
Transfers Into or Out of Level 3, Net | [4],[5] | (7) | [3] | (39) | (56) | ||
Ending Fair Value | [5] | 1 | 2 | 6 | |||
ABS [Member] | Fixed Maturity Securities [Member] | Liberty Transaction [Member] | |||||||
Level 3 Unobservable Input Reconciliation | |||||||
Issuances, Sales, Maturities, Settlements, Calls, Net | 17 | ||||||
CLOs [Member] | Fixed Maturity Securities [Member] | |||||||
Level 3 Unobservable Input Reconciliation | |||||||
Beginning Fair Value | [5] | 134 | 117 | 101 | |||
Gains (Losses) in OCI and Other | [1],[5] | 1 | |||||
Issuances, Sales, Maturities, Settlements, Calls, Net | [5] | 619 | [2] | 223 | 124 | ||
Transfers Into or Out of Level 3, Net | [4],[5] | (486) | [3] | (206) | (108) | ||
Ending Fair Value | [5] | 268 | 134 | 117 | |||
State And Municipal Bonds [Member] | Fixed Maturity Securities [Member] | |||||||
Level 3 Unobservable Input Reconciliation | |||||||
Items Included in Net Income | (1) | ||||||
Transfers Into or Out of Level 3, Net | [4] | 1 | |||||
Hybrid And Redeemable Preferred Securities [Member] | Fixed Maturity Securities [Member] | |||||||
Level 3 Unobservable Input Reconciliation | |||||||
Beginning Fair Value | [5] | 75 | 76 | 76 | |||
Gains (Losses) in OCI and Other | [1],[5] | 3 | (1) | 14 | |||
Transfers Into or Out of Level 3, Net | [4],[5] | (14) | |||||
Ending Fair Value | [5] | 78 | 75 | 76 | |||
Equity AFS Securities [Member] | |||||||
Level 3 Unobservable Input Reconciliation | |||||||
Beginning Fair Value | [5] | 161 | 177 | ||||
Items Included in Net Income | [5] | 1 | |||||
Gains (Losses) in OCI and Other | [1],[5] | (3) | |||||
Issuances, Sales, Maturities, Settlements, Calls, Net | [5] | (13) | |||||
Transfers Into or Out of Level 3, Net | [4],[5] | (161) | (1) | ||||
Ending Fair Value | [5] | 161 | |||||
Trading Securities [Member] | |||||||
Level 3 Unobservable Input Reconciliation | |||||||
Beginning Fair Value | [5] | 67 | 49 | 65 | |||
Items Included in Net Income | [5] | 17 | (5) | 3 | |||
Gains (Losses) in OCI and Other | [1],[5] | 8 | |||||
Issuances, Sales, Maturities, Settlements, Calls, Net | [5] | 850 | [2] | 30 | (26) | ||
Transfers Into or Out of Level 3, Net | [4],[5] | (268) | [3] | (7) | (1) | ||
Ending Fair Value | [5] | 666 | 67 | 49 | |||
Equity Securities [Member] | |||||||
Level 3 Unobservable Input Reconciliation | |||||||
Beginning Fair Value | [5] | 25 | |||||
Items Included in Net Income | (12) | [5] | (1) | ||||
Issuances, Sales, Maturities, Settlements, Calls, Net | [2],[5] | 17 | |||||
Transfers Into or Out of Level 3, Net | [4] | 26 | |||||
Ending Fair Value | [5] | 30 | 25 | ||||
Derivative Investments [Member] | |||||||
Level 3 Unobservable Input Reconciliation | |||||||
Beginning Fair Value | [5] | 533 | 30 | (93) | |||
Items Included in Net Income | [5] | 9 | 168 | (27) | |||
Gains (Losses) in OCI and Other | [1],[5] | 164 | (74) | 127 | |||
Issuances, Sales, Maturities, Settlements, Calls, Net | [5] | 162 | [2] | 409 | 23 | ||
Ending Fair Value | [5] | 868 | 533 | 30 | |||
GLB Direct Embedded Derivatives [Member] | Other Assets [Member] | |||||||
Level 3 Unobservable Input Reconciliation | |||||||
Beginning Fair Value | [6] | 123 | 903 | ||||
Items Included in Net Income | [6] | 327 | (780) | 903 | |||
Ending Fair Value | [6] | 450 | 123 | 903 | |||
GLB Direct Embedded Derivatives [Member] | Other Liabilities [Member] | |||||||
Level 3 Unobservable Input Reconciliation | |||||||
Beginning Fair Value | [6] | (954) | |||||
Items Included in Net Income | [6] | (954) | |||||
Ending Fair Value | [6] | (954) | |||||
GLB Ceded Embedded Derivatives [Member] | Other Assets [Member] | |||||||
Level 3 Unobservable Input Reconciliation | |||||||
Beginning Fair Value | 72 | [6] | 51 | [6] | 371 | ||
Items Included in Net Income | (12) | [6] | 21 | [6] | (320) | ||
Ending Fair Value | [6] | 60 | 72 | 51 | |||
GLB Ceded Embedded Derivatives [Member] | Other Liabilities [Member] | |||||||
Level 3 Unobservable Input Reconciliation | |||||||
Beginning Fair Value | (196) | [6] | (954) | ||||
Items Included in Net Income | (314) | [6] | 758 | ||||
Ending Fair Value | (510) | [6] | (196) | [6] | (954) | ||
Indexed Annuity And IUL Contracts [Member] | Other Assets [Member] | |||||||
Level 3 Unobservable Input Reconciliation | |||||||
Beginning Fair Value | [6] | 902 | 11 | ||||
Items Included in Net Income | [6] | 158 | (117) | ||||
Issuances, Sales, Maturities, Settlements, Calls, Net | (133) | [2],[6] | 1,008 | [6] | 11 | ||
Ending Fair Value | [6] | 927 | 902 | 11 | |||
Indexed Annuity And IUL Contracts [Member] | Future Contract Benefits [Member] | |||||||
Level 3 Unobservable Input Reconciliation | |||||||
Beginning Fair Value | [6] | (1,305) | (1,418) | (1,139) | |||
Items Included in Net Income | [6] | (900) | 198 | (400) | |||
Issuances, Sales, Maturities, Settlements, Calls, Net | [6] | (380) | [2] | (85) | 121 | ||
Ending Fair Value | [6] | $ (2,585) | $ (1,305) | (1,418) | |||
Credit Default Swaps [Member] | |||||||
Level 3 Unobservable Input Reconciliation | |||||||
Beginning Fair Value | (371) | ||||||
Items Included in Net Income | $ 371 | ||||||
[1] | The changes in fair value of the interest rate swaps are offset by an adjustment to derivative investments (see Note 6). | ||||||
[2] | Issuances, sales, maturities, settlements, calls, net, includes financial instruments acquired in the Liberty Life transaction as follows: corporate bonds of $ 67 million and ABS of $ 17 million. | ||||||
[3] | Transfers into or out of Level 3 for FHLB stock between equity securities and other investments are reported at cost on our Consolidated Balance Sheets. | ||||||
[4] | Transfers into or out of Level 3 for fixed maturity AFS and trading securities are reported at amortized cost as of the beginning-of-year. For fixed maturity AFS and trading securities, the difference between beginning-of-year amortized cost and beginning-of-year fair value was included in OCI and earnings, respectively, in the prior years. | ||||||
[5] | 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). | ||||||
[6] | 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 Instr_7
Fair Value of Financial Instruments (Schedule Of Investment Holdings Movements) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | |||
Issuances | $ 3,118 | $ 2,520 | $ 1,205 |
Sales | (147) | 247 | (273) |
Maturities | (435) | (424) | (505) |
Settlements | (175) | (102) | (15) |
Calls | (30) | (77) | (144) |
Total | 2,331 | 2,164 | 268 |
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 | 1,502 | 1,068 | 850 |
Sales | (45) | (171) | (448) |
Maturities | (78) | (3) | (98) |
Settlements | (154) | (275) | (205) |
Calls | (30) | (77) | (144) |
Total | 1,195 | 542 | (45) |
U.S. Government Bonds [Member] | Fixed Maturity Securities [Member] | |||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | |||
Sales | (5) | ||
Total | (5) | ||
Foreign Government Bonds [Member] | Fixed Maturity Securities [Member] | |||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | |||
Maturities | (25) | ||
Total | (25) | ||
RMBS [Member] | Fixed Maturity Securities [Member] | |||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | |||
Issuances | 21 | 7 | 19 |
Total | 21 | 7 | 19 |
CMBS [Member] | Fixed Maturity Securities [Member] | |||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | |||
Issuances | 7 | 39 | 55 |
Settlements | (2) | (4) | (1) |
Total | 5 | 35 | 54 |
CLOs [Member] | Fixed Maturity Securities [Member] | |||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | |||
Issuances | 646 | 240 | 124 |
Sales | (8) | (17) | |
Settlements | (19) | ||
Total | 619 | 223 | 124 |
Equity AFS Securities [Member] | |||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | |||
Issuances | 18 | ||
Sales | (31) | ||
Total | (13) | ||
Trading Securities [Member] | |||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | |||
Issuances | 872 | 54 | 2 |
Sales | (24) | (27) | |
Settlements | (22) | (1) | |
Total | 850 | 30 | (26) |
Equity Securities [Member] | |||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | |||
Issuances | 50 | 1 | |
Sales | (33) | (1) | |
Total | 17 | ||
Derivative Investments [Member] | |||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | |||
Issuances | 555 | 365 | 197 |
Sales | (61) | 465 | 233 |
Maturities | (332) | (421) | (407) |
Total | 162 | 409 | 23 |
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 | 56 | 1,030 | 11 |
Settlements | (189) | (22) | |
Total | (133) | 1,008 | 11 |
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 | (591) | (284) | (71) |
Settlements | 211 | 199 | 192 |
Total | $ (380) | $ (85) | $ 121 |
Fair Value of Financial Instr_8
Fair Value of Financial Instruments (Changes In Unrealized Gains (Losses) Within Level 3 Financial Instruments Carried At Fair Value And Still Held) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 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] | $ 71 | $ 52 | $ (280) |
Derivative Investments [Member] | Realized Gain (Loss) [Member] | ||||
Changes in unrealized gains (losses) within Level 3 financial instruments carried at fair value and still held | ||||
Change in unrealized gains (losses) included in net income | 168 | 90 | (266) | |
Indexed Annuity And IUL Contracts [Member] | Realized Gain (Loss) [Member] | ||||
Changes in unrealized gains (losses) within Level 3 financial instruments carried at fair value and still held | ||||
Change in unrealized gains (losses) included in net income | (97) | (38) | (14) | |
Other Assets [Member] | GLB Embedded Derivative [Member] | Realized Gain (Loss) [Member] | ||||
Changes in unrealized gains (losses) within Level 3 financial instruments carried at fair value and still held | ||||
Change in unrealized gains (losses) included in net income | 1,015 | (75) | 1,904 | |
Other Liabilities [Member] | GLB Embedded Derivative [Member] | Realized Gain (Loss) [Member] | ||||
Changes in unrealized gains (losses) within Level 3 financial instruments carried at fair value and still held | ||||
Change in unrealized gains (losses) included in net income | $ (1,015) | $ 75 | $ (1,904) | |
[1] | Included in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss) |
Fair Value of Financial Instr_9
Fair Value of Financial Instruments (Components Of The Transfers In And Out Of Level 3) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | |||
Transfers Into Level 3 | $ 192 | $ 105 | $ 516 |
Transfers Out of Level 3 | (1,014) | (556) | (330) |
Total Transfers Into or (Out) of Level 3 | (822) | (451) | 186 |
Corporate Bonds [Member] | Fixed Maturity Securities [Member] | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | |||
Transfers Into Level 3 | 173 | 78 | 458 |
Transfers Out of Level 3 | (222) | (130) | (88) |
Total Transfers Into or (Out) of Level 3 | (49) | (52) | 370 |
U.S. Government Bonds [Member] | Fixed Maturity Securities [Member] | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | |||
Transfers Into Level 3 | 5 | 5 | |
Total Transfers Into or (Out) of Level 3 | 5 | 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 | (17) | (12) | (10) |
Total Transfers Into or (Out) of Level 3 | (17) | (12) | (10) |
CMBS [Member] | Fixed Maturity Securities [Member] | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | |||
Transfers Into Level 3 | 1 | 3 | |
Transfers Out of Level 3 | (7) | (40) | (59) |
Total Transfers Into or (Out) of Level 3 | (7) | (39) | (56) |
CLOs [Member] | Fixed Maturity Securities [Member] | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | |||
Transfers Into Level 3 | 9 | 44 | |
Transfers Out of Level 3 | (495) | (206) | (152) |
Total Transfers Into or (Out) of Level 3 | (486) | (206) | (108) |
State And Municipal Bonds [Member] | Fixed Maturity Securities [Member] | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | |||
Transfers Into Level 3 | 2 | ||
Transfers Out of Level 3 | (1) | ||
Total Transfers Into or (Out) of Level 3 | 1 | ||
Hybrid And Redeemable Preferred Securities [Member] | Fixed Maturity Securities [Member] | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | |||
Transfers Out of Level 3 | (14) | ||
Total Transfers Into or (Out) of Level 3 | (14) | ||
Equity AFS Securities [Member] | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | |||
Transfers Out of Level 3 | (161) | (1) | |
Total Transfers Into or (Out) of Level 3 | (161) | (1) | |
Trading Securities [Member] | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | |||
Transfers Into Level 3 | 5 | 4 | |
Transfers Out of Level 3 | (273) | (7) | (5) |
Total Transfers Into or (Out) of Level 3 | $ (268) | (7) | $ (1) |
Equity Securities [Member] | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | |||
Transfers Into Level 3 | 26 | ||
Total Transfers Into or (Out) of Level 3 | $ 26 |
Fair Value of Financial Inst_10
Fair Value of Financial Instruments (Fair Value Inputs Quantitative Information) (Details) - Significant Unobservable Inputs (Level 3) [Member] - Discounted Cash Flow Valuation Technique [Member] $ in Millions | Dec. 31, 2019USD ($)item |
Corporate Bonds [Member] | Fixed Maturity Securities [Member] | |
Assets Fair Value Disclosure [Abstract] | |
Assets Fair Value Disclosure | $ | $ 2,996 |
Corporate Bonds [Member] | Maximum [Member] | Fixed Maturity Securities [Member] | Liquidity/Duration Adjustment [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Fixed maturity AFS and trading securities, measurement input | 0.064 |
Corporate Bonds [Member] | Minimum [Member] | Fixed Maturity Securities [Member] | Liquidity/Duration Adjustment [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Fixed maturity AFS and trading securities, measurement input | 0.001 |
ABS [Member] | Fixed Maturity Securities [Member] | |
Assets Fair Value Disclosure [Abstract] | |
Assets Fair Value Disclosure | $ | $ 22 |
ABS [Member] | Maximum [Member] | Fixed Maturity Securities [Member] | Liquidity/Duration Adjustment [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Fixed maturity AFS and trading securities, measurement input | 0.030 |
ABS [Member] | Minimum [Member] | Fixed Maturity Securities [Member] | Liquidity/Duration Adjustment [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Fixed maturity AFS and trading securities, measurement input | 0.030 |
Foreign Government Bonds [Member] | Fixed Maturity Securities [Member] | |
Assets Fair Value Disclosure [Abstract] | |
Assets Fair Value Disclosure | $ | $ 52 |
Foreign Government Bonds [Member] | Maximum [Member] | Fixed Maturity Securities [Member] | Liquidity/Duration Adjustment [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Fixed maturity AFS and trading securities, measurement input | 0.025 |
Foreign Government Bonds [Member] | Minimum [Member] | Fixed Maturity Securities [Member] | Liquidity/Duration Adjustment [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Fixed maturity AFS and trading securities, measurement input | 0.021 |
Hybrid And Redeemable Preferred Securities [Member] | Fixed Maturity Securities [Member] | |
Assets Fair Value Disclosure [Abstract] | |
Assets Fair Value Disclosure | $ | $ 4 |
Hybrid And Redeemable Preferred Securities [Member] | Maximum [Member] | Fixed Maturity Securities [Member] | Liquidity/Duration Adjustment [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Fixed maturity AFS and trading securities, measurement input | 0.014 |
Hybrid And Redeemable Preferred Securities [Member] | Minimum [Member] | Fixed Maturity Securities [Member] | Liquidity/Duration Adjustment [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Fixed maturity AFS and trading securities, measurement input | 0.014 |
Equity Securities [Member] | |
Assets Fair Value Disclosure [Abstract] | |
Assets Fair Value Disclosure | $ | $ 21 |
Equity Securities [Member] | Maximum [Member] | Liquidity/Duration Adjustment [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Equity securities, measurement input | 0.052 |
Equity Securities [Member] | Minimum [Member] | Liquidity/Duration Adjustment [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Equity securities, measurement input | 0.045 |
GLB Embedded Derivative [Member] | Other Assets [Member] | |
Assets Fair Value Disclosure [Abstract] | |
Assets Fair Value Disclosure | $ | $ 510 |
GLB Embedded Derivative [Member] | Maximum [Member] | Other Assets [Member] | Lapse Rate [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Derivative assets, measurement input | 0.30 |
GLB Embedded Derivative [Member] | Maximum [Member] | Other Assets [Member] | Utilization Of Guaranteed Withdrawls [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Derivative assets, measurement input | 1 |
GLB Embedded Derivative [Member] | Maximum [Member] | Other Assets [Member] | Claims Utilization Factor [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Derivative assets, measurement input | 1 |
GLB Embedded Derivative [Member] | Maximum [Member] | Other Assets [Member] | Premiums Utilization Factor [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Derivative assets, measurement input | 1.15 |
GLB Embedded Derivative [Member] | Maximum [Member] | Other Assets [Member] | NPR [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Derivative assets, measurement input | 0.0027 |
GLB Embedded Derivative [Member] | Maximum [Member] | Other Assets [Member] | Volatility [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Derivative assets, measurement input | 0.28 |
GLB Embedded Derivative [Member] | Minimum [Member] | Other Assets [Member] | Lapse Rate [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Derivative assets, measurement input | 0.01 |
GLB Embedded Derivative [Member] | Minimum [Member] | Other Assets [Member] | Utilization Of Guaranteed Withdrawls [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Derivative assets, measurement input | 0.85 |
GLB Embedded Derivative [Member] | Minimum [Member] | Other Assets [Member] | Claims Utilization Factor [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Derivative assets, measurement input | 0.60 |
GLB Embedded Derivative [Member] | Minimum [Member] | Other Assets [Member] | Premiums Utilization Factor [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Derivative assets, measurement input | 0.80 |
GLB Embedded Derivative [Member] | Minimum [Member] | Other Assets [Member] | NPR [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Derivative assets, measurement input | 0.0001 |
GLB Embedded Derivative [Member] | Minimum [Member] | Other Assets [Member] | Volatility [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Derivative assets, measurement input | 0.01 |
Indexed Annuity And IUL Contracts [Member] | Other Assets [Member] | |
Assets Fair Value Disclosure [Abstract] | |
Assets Fair Value Disclosure | $ | $ 927 |
Indexed Annuity And IUL Contracts [Member] | Maximum [Member] | Other Assets [Member] | Lapse Rate [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Derivative assets, measurement input | 9 |
Indexed Annuity And IUL Contracts [Member] | Minimum [Member] | Other Assets [Member] | Lapse Rate [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Derivative assets, measurement input | 1 |
Future contract benefits - indexed annuity and IUL contracts embedded derivatives | Future Contract Benefits [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Liabilities measured at fair value | $ | $ (2,585) |
Future contract benefits - indexed annuity and IUL contracts embedded derivatives | Maximum [Member] | Future Contract Benefits [Member] | Lapse Rate [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Derivative liability, measurement input | 0.09 |
Future contract benefits - indexed annuity and IUL contracts embedded derivatives | Minimum [Member] | Future Contract Benefits [Member] | Lapse Rate [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Derivative liability, measurement input | 0.01 |
GLB Ceded Embedded Derivatives [Member] | Other Liabilities [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Liabilities measured at fair value | $ | $ (510) |
GLB Ceded Embedded Derivatives [Member] | Maximum [Member] | Other Liabilities [Member] | Lapse Rate [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Derivative liability, measurement input | 0.30 |
GLB Ceded Embedded Derivatives [Member] | Maximum [Member] | Other Liabilities [Member] | Utilization Of Guaranteed Withdrawls [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Derivative liability, measurement input | 1 |
GLB Ceded Embedded Derivatives [Member] | Maximum [Member] | Other Liabilities [Member] | Claims Utilization Factor [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Derivative liability, measurement input | 1 |
GLB Ceded Embedded Derivatives [Member] | Maximum [Member] | Other Liabilities [Member] | Premiums Utilization Factor [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Derivative liability, measurement input | 1.15 |
GLB Ceded Embedded Derivatives [Member] | Maximum [Member] | Other Liabilities [Member] | NPR [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Derivative liability, measurement input | 0.0027 |
GLB Ceded Embedded Derivatives [Member] | Maximum [Member] | Other Liabilities [Member] | Volatility [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Derivative liability, measurement input | 0.28 |
GLB Ceded Embedded Derivatives [Member] | Minimum [Member] | Other Liabilities [Member] | Lapse Rate [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Derivative liability, measurement input | 0.01 |
GLB Ceded Embedded Derivatives [Member] | Minimum [Member] | Other Liabilities [Member] | Utilization Of Guaranteed Withdrawls [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Derivative liability, measurement input | 0.85 |
GLB Ceded Embedded Derivatives [Member] | Minimum [Member] | Other Liabilities [Member] | Claims Utilization Factor [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Derivative liability, measurement input | 0.60 |
GLB Ceded Embedded Derivatives [Member] | Minimum [Member] | Other Liabilities [Member] | Premiums Utilization Factor [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Derivative liability, measurement input | 0.80 |
GLB Ceded Embedded Derivatives [Member] | Minimum [Member] | Other Liabilities [Member] | NPR [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Derivative liability, measurement input | 0.0001 |
GLB Ceded Embedded Derivatives [Member] | Minimum [Member] | Other Liabilities [Member] | Volatility [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Derivative liability, measurement input | 0.01 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Information [Abstract] | |||
Federal statutory rate | 21.00% | 21.00% | 35.00% |
Segment Information (Reconcilia
Segment Information (Reconciliation Of Revenue From Segments To Consolidated) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||
Excluded realized gain (loss), pre-tax | $ (1,019) | $ (285) | $ (630) | ||||||||
Amortization of DFEL associated with benefit ratio unlocking, pre-tax | 1 | ||||||||||
Total revenues | $ 4,273 | $ 4,227 | $ 3,928 | $ 3,764 | $ 4,063 | $ 4,039 | $ 3,852 | $ 3,404 | 16,192 | 15,358 | 13,148 |
Annuities Segment [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 4,240 | 4,025 | 4,034 | ||||||||
Retirement Plan Services Segment [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 1,186 | 1,164 | 1,152 | ||||||||
Life Insurance Segment [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 6,999 | 6,489 | 6,128 | ||||||||
Group Protection Segment [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 4,587 | 3,756 | 2,200 | ||||||||
Other Operations [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | $ 199 | $ 209 | $ 263 |
Segment Information (Reconcil_2
Segment Information (Reconciliation Of Income (Loss) From Operations By Segment To Consolidated Net Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | |||||||||||
Impairment | $ (905) | ||||||||||
Net income (loss) | $ 460 | $ (201) | $ 222 | $ 133 | $ 368 | $ 378 | $ 420 | $ 407 | 614 | 1,573 | 2,018 |
Annuities Segment [Member] | |||||||||||
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | |||||||||||
Impairment | |||||||||||
Net income (loss) | 987 | 1,122 | 1,072 | ||||||||
Retirement Plan Services Segment [Member] | |||||||||||
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | |||||||||||
Impairment | |||||||||||
Net income (loss) | 162 | 160 | 142 | ||||||||
Life Insurance Segment [Member] | |||||||||||
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | |||||||||||
Impairment | |||||||||||
Net income (loss) | 267 | 530 | 522 | ||||||||
Group Protection Segment [Member] | |||||||||||
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | |||||||||||
Impairment | |||||||||||
Net income (loss) | 237 | 186 | 103 | ||||||||
Other Operations [Member] | |||||||||||
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | |||||||||||
Net income (loss) | (148) | (130) | (30) | ||||||||
Segment Reconciling Items [Member] | |||||||||||
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | |||||||||||
Excluded realized gain (loss), after-tax | (804) | (225) | (409) | ||||||||
(Gain) loss on early extinguishment of debt, after tax | (3) | ||||||||||
Net impact from the Tax Cuts and Jobs Act | 16 | (3) | 1,526 | ||||||||
Impairment | $ (905) | ||||||||||
Acquisition and integration costs related to mergers and acquisitions, after-tax | $ (103) | $ (67) |
Segment Information (Reconcil_3
Segment Information (Reconciliation of Net Investment Income From Segments to Consolidated) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net Investment Income [Abstract] | |||
Total net investment income | $ 4,962 | $ 4,844 | $ 4,760 |
Annuities Segment [Member] | |||
Net Investment Income [Abstract] | |||
Total net investment income | 1,070 | 947 | 982 |
Retirement Plan Services Segment [Member] | |||
Net Investment Income [Abstract] | |||
Total net investment income | 917 | 892 | 893 |
Life Insurance Segment [Member] | |||
Net Investment Income [Abstract] | |||
Total net investment income | 2,494 | 2,546 | 2,496 |
Group Protection Segment [Member] | |||
Net Investment Income [Abstract] | |||
Total net investment income | 306 | 259 | 167 |
Other Operations [Member] | |||
Net Investment Income [Abstract] | |||
Total net investment income | $ 175 | $ 200 | $ 222 |
Segment Information (Reconcil_4
Segment Information (Reconciliation of DAC VOBA Amortization From Segments to Consolidated) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Amortization of DAC and VOBA, Net of Interest | |||
Amortization of DAC and VOBA, net of interest | $ 1,320 | $ 1,167 | $ 962 |
Annuities Segment [Member] | |||
Amortization of DAC and VOBA, Net of Interest | |||
Amortization of DAC and VOBA, net of interest | 427 | 347 | 402 |
Retirement Plan Services Segment [Member] | |||
Amortization of DAC and VOBA, Net of Interest | |||
Amortization of DAC and VOBA, net of interest | 25 | 27 | 26 |
Life Insurance Segment [Member] | |||
Amortization of DAC and VOBA, Net of Interest | |||
Amortization of DAC and VOBA, net of interest | 757 | 701 | 455 |
Group Protection Segment [Member] | |||
Amortization of DAC and VOBA, Net of Interest | |||
Amortization of DAC and VOBA, net of interest | $ 111 | $ 92 | $ 79 |
Segment Information (Reconcil_5
Segment Information (Reconciliation of Federal Income Tax Expense (Benefit) From Segments to Consolidated) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of Federal Income Tax Expense (Benefit) from Segments to Consolidated [Abstract] | |||
Income tax expense (benefit) | $ (37) | $ 257 | $ (1,287) |
Annuities Segment [Member] | |||
Reconciliation of Federal Income Tax Expense (Benefit) from Segments to Consolidated [Abstract] | |||
Income tax expense (benefit) | 148 | 187 | 198 |
Retirement Plan Services Segment [Member] | |||
Reconciliation of Federal Income Tax Expense (Benefit) from Segments to Consolidated [Abstract] | |||
Income tax expense (benefit) | 21 | 28 | 50 |
Life Insurance Segment [Member] | |||
Reconciliation of Federal Income Tax Expense (Benefit) from Segments to Consolidated [Abstract] | |||
Income tax expense (benefit) | 50 | 116 | 236 |
Group Protection Segment [Member] | |||
Reconciliation of Federal Income Tax Expense (Benefit) from Segments to Consolidated [Abstract] | |||
Income tax expense (benefit) | 63 | 50 | 55 |
Other Operations [Member] | |||
Reconciliation of Federal Income Tax Expense (Benefit) from Segments to Consolidated [Abstract] | |||
Income tax expense (benefit) | (61) | (48) | (78) |
Excluded Realized Gain (Loss) [Member] | |||
Reconciliation of Federal Income Tax Expense (Benefit) from Segments to Consolidated [Abstract] | |||
Income tax expense (benefit) | (215) | (61) | (220) |
Gain (loss) on early extinguishment of debt [Member] | |||
Reconciliation of Federal Income Tax Expense (Benefit) from Segments to Consolidated [Abstract] | |||
Income tax expense (benefit) | (2) | ||
Net Impact From Tax Cuts And Jobs Act [Member] | |||
Reconciliation of Federal Income Tax Expense (Benefit) from Segments to Consolidated [Abstract] | |||
Income tax expense (benefit) | (16) | 3 | $ (1,526) |
Acquisition And Integration Costs Related To Mergers And Acquisitions [Member] | |||
Reconciliation of Federal Income Tax Expense (Benefit) from Segments to Consolidated [Abstract] | |||
Income tax expense (benefit) | $ (27) | $ (18) |
Segment Information (Reconcil_6
Segment Information (Reconciliation of Assets From Segments to Consolidated Balance Sheet) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule Of Segment Reporting And Reconcilliation [Line Items] | ||
Total assets | $ 336,016 | $ 299,145 |
Annuities Segment [Member] | ||
Schedule Of Segment Reporting And Reconcilliation [Line Items] | ||
Total assets | 166,639 | 145,462 |
Retirement Plan Services Segment [Member] | ||
Schedule Of Segment Reporting And Reconcilliation [Line Items] | ||
Total assets | 40,190 | 35,742 |
Life Insurance Segment [Member] | ||
Schedule Of Segment Reporting And Reconcilliation [Line Items] | ||
Total assets | 93,327 | 82,153 |
Group Protection Segment [Member] | ||
Schedule Of Segment Reporting And Reconcilliation [Line Items] | ||
Total assets | 9,468 | 8,495 |
Other Operations [Member] | ||
Schedule Of Segment Reporting And Reconcilliation [Line Items] | ||
Total assets | $ 26,392 | $ 27,293 |
Supplemental Disclosures of C_3
Supplemental Disclosures of Cash Flow (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Supplemental Disclosures of Cash Flow Data [Abstract] | |||
Interest paid | $ 152 | $ 154 | $ 123 |
Income taxes paid (received) | 245 | 192 | 215 |
Significant non-cash investing and financing transactions: | |||
Reduction of other assets in connection with the expiration of an affiliate repurchase agreement | (150) | ||
Acquisition of note receivable from affiliate | 392 | 31 | 74 |
Investments received in financing transactions | 263 | ||
Carrying value of asset, Exchanges of surplus note for promissory note with affiliate | 40 | 58 | 109 |
Carrying value of liability, Exchange of surplus note for promissory note with affiliate | (40) | (58) | (109) |
Net asset (liability) from exchange |
Quarterly Results of Operatio_3
Quarterly Results of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Results of Operations [Abstract] | |||||||||||
Total revenues | $ 4,273 | $ 4,227 | $ 3,928 | $ 3,764 | $ 4,063 | $ 4,039 | $ 3,852 | $ 3,404 | $ 16,192 | $ 15,358 | $ 13,148 |
Total expenses | 3,757 | 4,526 | 3,686 | 3,646 | 3,631 | 3,619 | 3,357 | 2,921 | 15,615 | 13,528 | 12,417 |
Net income (loss) | $ 460 | $ (201) | $ 222 | $ 133 | $ 368 | $ 378 | $ 420 | $ 407 | $ 614 | $ 1,573 | $ 2,018 |
Transactions With Affiliates (N
Transactions With Affiliates (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Transactions With Affiliates [Abstract] | ||
Borrowing and lending limit, percent of admitted assets | 3.00% | |
Line of credit beneficiary amount | $ 115 | $ 1,200 |
Transactions With Affiliates (B
Transactions With Affiliates (Balance Sheet Transactions With Affiliates) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Related Party Transaction [Line Items] | ||
Assets | $ 336,016 | $ 299,145 |
Liabilities | 314,431 | 282,826 |
Accrued Inter-Company Interest [Member] | Accrued Investment Income [Member] | ||
Related Party Transaction [Line Items] | ||
Assets | 6 | 11 |
Accrued Inter-Company Interest [Member] | Other Liabilities [Member] | ||
Related Party Transaction [Line Items] | ||
Liabilities | 5 | 13 |
Ceded Reinsurance Contracts [Member] | Deferred Acquisition Costs And Value Of Business Acquired [Member] | ||
Related Party Transaction [Line Items] | ||
Assets | (115) | (188) |
Ceded Reinsurance Contracts [Member] | Reinsurance Recoverables [Member] | ||
Related Party Transaction [Line Items] | ||
Assets | 2,473 | 2,574 |
Ceded Reinsurance Contracts [Member] | Reinsurance Related Embedded Derivatives [Member] | ||
Related Party Transaction [Line Items] | ||
Assets | 191 | |
Liabilities | 46 | |
Ceded Reinsurance Contracts [Member] | Other Assets [Member] | ||
Related Party Transaction [Line Items] | ||
Assets | 228 | 235 |
Ceded Reinsurance Contracts [Member] | Other Liabilities [Member] | ||
Related Party Transaction [Line Items] | ||
Liabilities | 497 | 325 |
Ceded Reinsurance Contracts [Member] | Other Contract Holder Funds [Member] | ||
Related Party Transaction [Line Items] | ||
Liabilities | (38) | (46) |
Ceded Reinsurance Contracts [Member] | Funds Withheld Reinsurance Liabilities [Member] | ||
Related Party Transaction [Line Items] | ||
Liabilities | 3,757 | 3,120 |
Cash Management Agreement [Member] | Other Assets [Member] | ||
Related Party Transaction [Line Items] | ||
Assets | 1,227 | 112 |
Service Agreement [Member] | Other Assets [Member] | ||
Related Party Transaction [Line Items] | ||
Assets | 6 | 5 |
Service Agreement [Member] | Other Liabilities [Member] | ||
Related Party Transaction [Line Items] | ||
Liabilities | 22 | 56 |
Assumed Reinsurance Contracts [Member] | Future Contract Benefits [Member] | ||
Related Party Transaction [Line Items] | ||
Liabilities | 26 | 29 |
Assumed Reinsurance Contracts [Member] | Other Contract Holder Funds [Member] | ||
Related Party Transaction [Line Items] | ||
Liabilities | 390 | 400 |
Inter-Company Debt [Member] | Fixed Maturity Securities [Member] | ||
Related Party Transaction [Line Items] | ||
Assets | 1,557 | 1,512 |
Inter-Company Debt [Member] | Short-term Debt [Member] | ||
Related Party Transaction [Line Items] | ||
Liabilities | 609 | 288 |
Inter-Company Debt [Member] | Long-term Debt [Member] | ||
Related Party Transaction [Line Items] | ||
Liabilities | $ 2,414 | $ 2,401 |
Transactions With Affiliates (C
Transactions With Affiliates (Comprehensive Income (Loss) Transactions With Affiliates) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Related Party Transaction [Line Items] | |||
Insurance premiums | $ 5,277 | $ 4,362 | $ 3,018 |
Net investment income | 4,962 | 4,844 | 4,760 |
Realized gains (losses) | (828) | (92) | (456) |
Amortization of deferred gain on business sold through reinsurance | 27 | 4 | 18 |
Interest credited | 2,754 | 2,589 | 2,558 |
Benefits | 7,585 | 6,144 | 4,818 |
Commissions and other expenses | 5,065 | 4,583 | 3,967 |
Interest and debt expense | 145 | 136 | 126 |
Premiums Received On Assumed (Paid On Ceded) Reinsurance Contract [Member] | |||
Related Party Transaction [Line Items] | |||
Insurance premiums | (407) | (404) | (393) |
Fees For Management Of General Account [Member] | |||
Related Party Transaction [Line Items] | |||
Net investment income | (133) | (106) | (100) |
Ceded Funds Withheld Treaties [Member] | |||
Related Party Transaction [Line Items] | |||
Net investment income | (139) | (123) | (84) |
Ceded Reinsurance Contracts [Member] | |||
Related Party Transaction [Line Items] | |||
Benefits | (254) | (610) | (299) |
Commissions and other expenses | (19) | (8) | (12) |
Ceded Reinsurance Contracts [Member] | GLB Reserves Embedded Derivative [Member] | |||
Related Party Transaction [Line Items] | |||
Realized gains (losses) | (305) | 709 | (1,055) |
Ceded Reinsurance Contracts [Member] | Reinsurance Related Embedded Derivatives [Member] | |||
Related Party Transaction [Line Items] | |||
Realized gains (losses) | 472 | (1,189) | 951 |
Ceded Reinsurance Contracts [Member] | Other Gains (Losses) [Member] | |||
Related Party Transaction [Line Items] | |||
Realized gains (losses) | (301) | 237 | (150) |
Service Agreement [Member] | |||
Related Party Transaction [Line Items] | |||
Commissions and other expenses | 15 | 3 | 3 |
Assumed Reinsurance Contracts [Member] | |||
Related Party Transaction [Line Items] | |||
Interest credited | 60 | 57 | 67 |
Inter-Company Debt [Member] | |||
Related Party Transaction [Line Items] | |||
Net investment income | 53 | 49 | 42 |
Interest and debt expense | 130 | 126 | 120 |
Amortization Of Deferred Gain On Business Sold Through Reinsurance, Pre-Tax [Member] | |||
Related Party Transaction [Line Items] | |||
Amortization of deferred gain on business sold through reinsurance | $ (4) | $ (5) | $ (5) |
SCHEDULE I - CONSOLIDATED SUM_2
SCHEDULE I - CONSOLIDATED SUMMARY OF INVESTMENTS (Details) $ in Millions | Dec. 31, 2019USD ($) | |
Summary of investments, other than investments in related parties [Line Items] | ||
Cost | $ 119,722 | |
Carrying Value | 131,658 | |
Fixed Maturity Securities [Member] | ||
Summary of investments, other than investments in related parties [Line Items] | ||
Cost | 93,307 | [1] |
Fair Value | 103,773 | [1] |
Carrying Value | 103,773 | [1] |
Equity Securities [Member] | ||
Summary of investments, other than investments in related parties [Line Items] | ||
Cost | 123 | |
Fair Value | 103 | |
Carrying Value | 103 | |
Other Liabilities [Member] | ||
Summary of investments, other than investments in related parties [Line Items] | ||
Derivative Liabilities | 238 | |
U.S. Government Bonds [Member] | Fixed Maturity Securities [Member] | Bonds [Member] | ||
Summary of investments, other than investments in related parties [Line Items] | ||
Cost | 355 | [1] |
Fair Value | 403 | [1] |
Carrying Value | 403 | [1] |
Foreign Government Bonds [Member] | Fixed Maturity Securities [Member] | Bonds [Member] | ||
Summary of investments, other than investments in related parties [Line Items] | ||
Cost | 326 | [1] |
Fair Value | 388 | [1] |
Carrying Value | 388 | [1] |
State And Municipal Bonds [Member] | Fixed Maturity Securities [Member] | Bonds [Member] | ||
Summary of investments, other than investments in related parties [Line Items] | ||
Cost | 4,605 | [1] |
Fair Value | 5,685 | [1] |
Carrying Value | 5,685 | [1] |
Public Utilities [Member] | Fixed Maturity Securities [Member] | Bonds [Member] | ||
Summary of investments, other than investments in related parties [Line Items] | ||
Cost | 13,066 | [1] |
Fair Value | 14,842 | [1] |
Carrying Value | 14,842 | [1] |
Public Utilities [Member] | Equity Securities [Member] | Common Stock [Member] | ||
Summary of investments, other than investments in related parties [Line Items] | ||
Cost | 5 | |
Fair Value | 4 | |
Carrying Value | 4 | |
All other corporate bonds [Member] | Fixed Maturity Securities [Member] | Bonds [Member] | ||
Summary of investments, other than investments in related parties [Line Items] | ||
Cost | 65,809 | [1] |
Fair Value | 72,937 | [1] |
Carrying Value | 72,937 | [1] |
Mortgage-Backed And Asset-Backed Securities [Member] | Fixed Maturity Securities [Member] | ||
Summary of investments, other than investments in related parties [Line Items] | ||
Cost | 8,661 | [1] |
Fair Value | 8,974 | [1] |
Carrying Value | 8,974 | [1] |
Hybrid And Redeemable Preferred Securities [Member] | Fixed Maturity Securities [Member] | ||
Summary of investments, other than investments in related parties [Line Items] | ||
Cost | 485 | [1] |
Fair Value | 544 | [1] |
Carrying Value | 544 | [1] |
Banks, Trusts, And Insurance Companies [Member] | Equity Securities [Member] | Common Stock [Member] | ||
Summary of investments, other than investments in related parties [Line Items] | ||
Cost | 35 | |
Fair Value | 35 | |
Carrying Value | 35 | |
Industrial, miscellaneous and all other [Member] | Equity Securities [Member] | Common Stock [Member] | ||
Summary of investments, other than investments in related parties [Line Items] | ||
Cost | 35 | |
Fair Value | 26 | |
Carrying Value | 26 | |
Nonredeemable preferred securities [Member] | Equity Securities [Member] | ||
Summary of investments, other than investments in related parties [Line Items] | ||
Cost | 48 | |
Fair Value | 38 | |
Carrying Value | 38 | |
Trading Securities [Member] | ||
Summary of investments, other than investments in related parties [Line Items] | ||
Cost | 4,268 | |
Fair Value | 4,602 | |
Carrying Value | 4,602 | |
Mortgage Loans On Real Estate [Member] | ||
Summary of investments, other than investments in related parties [Line Items] | ||
Cost | 16,244 | |
Fair Value | 16,774 | |
Carrying Value | 16,244 | |
Real estate [Member] | ||
Summary of investments, other than investments in related parties [Line Items] | ||
Cost | 11 | |
Carrying Value | 11 | |
Policy loans [Member] | ||
Summary of investments, other than investments in related parties [Line Items] | ||
Cost | 2,460 | |
Carrying Value | 2,460 | |
Derivative Investments [Member] | ||
Summary of investments, other than investments in related parties [Line Items] | ||
Cost | 755 | [2] |
Fair Value | 1,911 | [2] |
Carrying Value | 1,911 | [2] |
Other Investments [Member] | ||
Summary of investments, other than investments in related parties [Line Items] | ||
Cost | 2,554 | |
Fair Value | 2,554 | |
Carrying Value | $ 2,554 | |
[1] | Investments deemed to have declines in value that are other-than-temporary are written down or reserved for to reduce the carrying value to their estimated realizable value. | |
[2] | Derivative investment assets were offset by $ 238 million in derivative liabilities reflected in other liabilities on our Consolidated Balance Sheets. |
SCHEDULE III - CONDENSED SUPPLE
SCHEDULE III - CONDENSED SUPPLEMENTARY INSURANCE INFORMATION (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Supplementary Insurance Information, by Segment [Line Items] | ||||
DAC and VOBA | $ 7,745 | $ 10,308 | $ 8,408 | |
Future Contract Benefits | 35,717 | 33,884 | 22,063 | |
Unearned Premiums | [1] | |||
Other Contract Holder Funds | 97,422 | 90,573 | 79,481 | |
Insurance Premiums | [2] | 5,277 | 4,362 | 3,018 |
Net Investment Income | 4,962 | 4,844 | 4,760 | |
Benefits and Interest Credited | 10,339 | 8,733 | 7,376 | |
Amortization of DAC and VOBA | 1,320 | 1,167 | 962 | |
Other Operating Expenses | 3,956 | 3,629 | 3,174 | |
Premiums Written | ||||
Annuities Segment [Member] | ||||
Supplementary Insurance Information, by Segment [Line Items] | ||||
DAC and VOBA | 3,973 | 3,915 | 3,806 | |
Future Contract Benefits | 3,861 | 3,508 | 1,942 | |
Unearned Premiums | [1] | |||
Other Contract Holder Funds | 29,518 | 23,525 | 21,739 | |
Insurance Premiums | [2] | 502 | 390 | 475 |
Net Investment Income | 1,070 | 947 | 982 | |
Benefits and Interest Credited | 1,327 | 1,053 | 1,077 | |
Amortization of DAC and VOBA | 427 | 347 | 402 | |
Other Operating Expenses | 1,351 | 1,316 | 1,285 | |
Premiums Written | ||||
Retirement Plan Services Segment [Member] | ||||
Supplementary Insurance Information, by Segment [Line Items] | ||||
DAC and VOBA | 181 | 247 | 197 | |
Future Contract Benefits | 9 | 8 | 4 | |
Unearned Premiums | [1] | |||
Other Contract Holder Funds | 20,553 | 19,761 | 18,719 | |
Net Investment Income | 917 | 892 | 893 | |
Benefits and Interest Credited | 587 | 556 | 539 | |
Amortization of DAC and VOBA | 25 | 27 | 26 | |
Other Operating Expenses | 392 | 393 | 395 | |
Premiums Written | ||||
Life Insurance Segment [Member] | ||||
Supplementary Insurance Information, by Segment [Line Items] | ||||
DAC and VOBA | 3,382 | 5,936 | 4,225 | |
Future Contract Benefits | 15,714 | 12,553 | 12,023 | |
Unearned Premiums | [1] | |||
Other Contract Holder Funds | 39,320 | 40,305 | 38,705 | |
Insurance Premiums | [2] | 661 | 589 | 546 |
Net Investment Income | 2,494 | 2,546 | 2,496 | |
Benefits and Interest Credited | 5,231 | 4,509 | 4,242 | |
Amortization of DAC and VOBA | 757 | 701 | 455 | |
Other Operating Expenses | 694 | 633 | 678 | |
Premiums Written | ||||
Group Protection Segment [Member] | ||||
Supplementary Insurance Information, by Segment [Line Items] | ||||
DAC and VOBA | 209 | 210 | 180 | |
Future Contract Benefits | 5,601 | 5,396 | 2,262 | |
Unearned Premiums | [1] | |||
Other Contract Holder Funds | 194 | 197 | 161 | |
Insurance Premiums | [2] | 4,113 | 3,383 | 1,998 |
Net Investment Income | 306 | 259 | 167 | |
Benefits and Interest Credited | 3,041 | 2,460 | 1,352 | |
Amortization of DAC and VOBA | 111 | 92 | 79 | |
Other Operating Expenses | 1,134 | 968 | 611 | |
Premiums Written | ||||
Other Operations [Member] | ||||
Supplementary Insurance Information, by Segment [Line Items] | ||||
Future Contract Benefits | 10,532 | 12,419 | 5,832 | |
Unearned Premiums | [1] | |||
Other Contract Holder Funds | 7,837 | 6,785 | 157 | |
Insurance Premiums | [2] | 1 | (1) | |
Net Investment Income | 175 | 200 | 222 | |
Benefits and Interest Credited | 153 | 155 | 166 | |
Other Operating Expenses | 385 | 319 | 205 | |
Premiums Written | ||||
[1] | Unearned premiums are included in Column C, future contract benefits. | |||
[2] | Includes amounts ceded to LNBAR. |
SCHEDULE IV - CONSOLIDATED RE_2
SCHEDULE IV - CONSOLIDATED REINSURANCE (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Consolidated reinsurance, net [Abstract] | ||||
Premiums Earned, Net, Total | $ 5,277 | $ 4,362 | $ 3,018 | |
Embedded derivatives - Reinsurance related [Member] | ||||
Consolidated reinsurance, net [Abstract] | ||||
Gross Amount | 13,347 | 11,882 | 10,103 | |
Ceded to Other Companies | 1,920 | 1,883 | 1,817 | |
Assumed from Other Companies | 97 | 96 | 101 | |
Premiums Earned, Net, Total | 11,524 | 10,095 | 8,387 | |
Gross Amount, Life Insurance in Force | [1] | 1,477,684 | 1,366,563 | 1,014,841 |
Ceded to Other Companies, Life Insurance in Force | [1] | 591,829 | 627,868 | 240,034 |
Assumed from Other Companies, Life Insurance in Force | [1] | 11,009 | 12,295 | 13,476 |
Premiums, Net, Life Insurance in Force, Total | [1] | $ 896,864 | $ 750,990 | $ 788,283 |
Percentage of Amount Assumed to Net, Life Insurance in Force | [1] | 1.20% | 1.60% | 1.70% |
Life Insurance And Annuity [Member] | Embedded derivatives - Reinsurance related [Member] | ||||
Consolidated reinsurance, net [Abstract] | ||||
Gross Amount | [2] | $ 10,572 | $ 9,583 | $ 8,783 |
Ceded to Other Companies | [2] | 1,877 | 1,841 | 1,786 |
Assumed from Other Companies | [2] | 88 | 88 | 90 |
Premiums Earned, Net, Total | [2] | $ 8,783 | $ 7,830 | $ 7,087 |
Percentage of Amount Assumed to Net | [2] | 1.00% | 1.10% | 1.30% |
Accident And Health Insurance [Member] | Embedded derivatives - Reinsurance related [Member] | ||||
Consolidated reinsurance, net [Abstract] | ||||
Gross Amount | $ 2,774 | $ 2,299 | $ 1,320 | |
Ceded to Other Companies | 43 | 42 | 31 | |
Assumed from Other Companies | 9 | 8 | 11 | |
Premiums Earned, Net, Total | $ 2,740 | $ 2,265 | $ 1,300 | |
Percentage of Amount Assumed to Net | 0.30% | 0.40% | 0.80% | |
[1] | Includes Group Protection segment and Other Operations in-force amounts. | |||
[2] | Includes insurance fees on universal life and other interest-sensitive products. |