Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2021 | May 10, 2021 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2021 | |
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 | |
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 | |
Amendment Flag | false | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2021 | |
Entity Central Index Key | 0000726865 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Investments: | ||
Fixed maturity available-for-sale securities, at fair value (amortized cost: 2021 - $104,684; 2020 - $103,021; allowance for credit losses: 2021 - $14; 2020 - $13) | $ 115,695 | $ 121,111 |
Trading securities | 4,308 | 4,442 |
Equity securities | 121 | 127 |
Mortgage loans on real estate, net of allowance for credit losses (portion at fair value: 2021 – $874; 2020 – $832) | 17,159 | 16,681 |
Policy loans | 2,487 | 2,411 |
Derivative investments | 3,453 | 3,109 |
Other investments | 3,024 | 3,025 |
Total investments | 146,247 | 150,906 |
Cash and invested cash | 1,086 | 1,462 |
Deferred acquisition costs and value of business acquired | 7,606 | 5,824 |
Premiums and fees receivable | 653 | 484 |
Accrued investment income | 1,255 | 1,217 |
Reinsurance recoverables, net of allowance for credit losses | 18,583 | 18,752 |
Funds withheld reinsurance assets | 528 | 530 |
Goodwill | 1,778 | 1,778 |
Other assets | 21,163 | 19,401 |
Separate account assets | 171,339 | 167,965 |
Total assets | 370,238 | 368,319 |
Liabilities | ||
Future contract benefits | 38,940 | 40,146 |
Other contract holder funds | 106,461 | 104,858 |
Short-term debt | 568 | 497 |
Long-term debt | 2,332 | 2,412 |
Reinsurance related embedded derivatives | 516 | 540 |
Funds withheld reinsurance liabilities | 6,300 | 7,179 |
Payables for collateral on investments | 7,593 | 6,215 |
Other liabilities | 13,979 | 13,466 |
Separate account liabilities | 171,339 | 167,965 |
Total liabilities | 348,028 | 343,278 |
Contingencies and Commitments (See Note 10) | ||
Stockholder’s Equity | ||
Common stock – 10,000,000 shares authorized, issued and outstanding | 11,919 | 11,853 |
Retained earnings | 4,451 | 4,167 |
Accumulated other comprehensive income (loss) | 5,840 | 9,021 |
Total stockholder’s equity | 22,210 | 25,041 |
Total liabilities and stockholder’s equity | $ 370,238 | $ 368,319 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Available-for-sale securities, at fair value: | ||
Fixed maturity available-for-sale securities (amortized cost) | $ 104,684 | $ 103,021 |
Fixed maturity, ACL | 14 | 13 |
Mortgage loans on real estate, fair value | $ 874 | $ 832 |
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 | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Revenues | ||
Insurance premiums | $ 1,330 | $ 1,318 |
Fee income | 1,524 | 1,478 |
Net investment income | 1,447 | 1,318 |
Realized gain (loss) | 211 | (2) |
Amortization of deferred gain on business sold through reinsurance | 7 | 9 |
Other revenues | 170 | 120 |
Total revenues | 4,689 | 4,241 |
Expenses | ||
Interest credited | 731 | 719 |
Benefits | 2,182 | 1,822 |
Commissions and other expenses | 1,171 | 1,053 |
Interest and debt expense | 29 | 34 |
Strategic digitization expense | 13 | 12 |
Total expenses | 4,126 | 3,640 |
Income (loss) before taxes | 563 | 601 |
Federal income tax expense (benefit) | 99 | 99 |
Net income (loss) | 464 | 502 |
Other comprehensive income (loss), net of tax | (3,181) | (2,063) |
Comprehensive income (loss) | $ (2,717) | $ (1,561) |
Consolidated Statements Of Stoc
Consolidated Statements Of Stockholder's Equity - USD ($) $ in Millions | Common Stock [Member] | Retained Earnings [Member]Cumulative Effect, Period of Adoption, Adjustment [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total |
Balance as of beginning-of-year at Dec. 31, 2019 | $ 11,312 | $ 4,437 | $ 5,836 | ||
Capital contribution from Lincoln National Corporation | 475 | ||||
Stock compensation/issued for benefit plans | 4 | ||||
Net income (loss) | 502 | $ 502 | |||
Dividends paid to Lincoln National Corporation | (305) | ||||
Other comprehensive income (loss), net of tax | (2,063) | (2,063) | |||
Balance as of end-of-year at Mar. 31, 2020 | 11,791 | $ (201) | 4,433 | 3,773 | 19,997 |
Balance as of beginning-of-year at Dec. 31, 2020 | 11,853 | 4,167 | 9,021 | 25,041 | |
Capital contribution from Lincoln National Corporation | 65 | ||||
Stock compensation/issued for benefit plans | 1 | ||||
Net income (loss) | 464 | 464 | |||
Dividends paid to Lincoln National Corporation | (180) | ||||
Other comprehensive income (loss), net of tax | (3,181) | (3,181) | |||
Balance as of end-of-year at Mar. 31, 2021 | $ 11,919 | $ 4,451 | $ 5,840 | $ 22,210 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash Flows from Operating Activities | ||
Net income (loss) | $ 464 | $ 502 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Realized (gain) loss | (211) | 2 |
Trading securities purchases, sales and maturities, net | 98 | 226 |
Amortization of deferred gain on business sold through reinsurance | (7) | (9) |
Change in: | ||
Deferred acquisition costs, value of business acquired, deferred sales inducements and deferred front-end loads deferrals and interest, net of amortization | 50 | (172) |
Premiums and fees receivable | (169) | (98) |
Accrued investment income | (51) | (43) |
Insurance liabilities and reinsurance-related balances | (265) | 680 |
Accrued expenses | (35) | (285) |
Federal income tax accruals | 99 | 99 |
Cash management agreement | (182) | (1,870) |
Other | (204) | 51 |
Net cash provided by (used in) operating activities | (413) | (917) |
Cash Flows from Investing Activities | ||
Purchases of available-for-sale securities and equity securities | (3,783) | (3,513) |
Sales of available-for-sale securities and equity securities | 592 | 380 |
Maturities of available-for-sale securities | 1,862 | 1,267 |
Purchases of alternative investments | (163) | (79) |
Sales and repayments of alternative investments | 54 | 55 |
Issuance of mortgage loans on real estate | (869) | (829) |
Repayment and maturities of mortgage loans on real estate | 398 | 224 |
Issuance (repayment) of policy loans, net | (76) | (94) |
Net change in collateral on investments, derivatives and related settlements | 987 | 4,221 |
Other | (30) | (59) |
Net cash provided by (used in) investing activities | (1,028) | 1,573 |
Cash Flows from Financing Activities | ||
Capital contribution from Lincoln National Corporation | 65 | 475 |
Payment of long-term debt, including current maturities | (60) | (30) |
Issuance of long-term debt, net of issuance costs | 30 | |
Issuance (payment) of short-term debt | 71 | 11 |
Deposits of fixed account values, including the fixed portion of variable | 3,132 | 3,911 |
Withdrawals of fixed account values, including the fixed portion of variable | (1,768) | (1,671) |
Transfers to and from separate accounts, net | (122) | 323 |
Common stock issued for benefit plans | (10) | (13) |
Dividends paid to Lincoln National Corporation | (180) | (305) |
Other | (63) | |
Net cash provided by (used in) financing activities | 1,065 | 2,731 |
Net increase (decrease) in cash, invested cash and restricted cash | (376) | 3,387 |
Cash, invested cash and restricted cash as of beginning-of-year | 1,462 | 1,879 |
Cash, invested cash and restricted cash as of end-of-period | $ 1,086 | $ 5,266 |
Nature of Operations and Basis
Nature of Operations and Basis of Presentation | 3 Months Ended |
Mar. 31, 2021 | |
Nature of Operations and Basis of Presentation [Abstract] | |
Nature of Operations and Basis of Presentation | 1. Nature of Operations and Basis of Presentation Nature of Operations The Lincoln National Life Insurance Company (“LNL” or the “Company,” which also may be referred to as “we,” “our” or “us”), a wholly-owned subsidiary of Lincoln National Corporation (“LNC” or the “Parent Company”), is domiciled in the state of Indiana. We own 100 % of the outstanding common stock of two insurance company subsidiaries, Lincoln Life & Annuity Company of New York (“LLANY”) and Lincoln Life Assurance Company of Boston. 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. Through our business segments, we sell a wide range of wealth protection, accumulation, retirement income and group protection products and solutions. These products primarily include fixed and indexed annuities, variable annuities, universal life insurance (“UL”), variable universal life insurance (“VUL”), linked-benefit UL and VUL, indexed universal life insurance (“IUL”), term life insurance, employer-sponsored retirement plans and services, and group life, disability and dental. LNL is licensed and sells its products throughout the U.S. and several U.S. territories. See Note 14 for additional information. Basis of Presentation The accompanying unaudited consolidated financial statements are prepared in accordance with United States of America generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions for the Securities and Exchange Commission (“SEC”) Quarterly Report on Form 10-Q, including Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. The information contained in the Notes to Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 (‘‘2020 Form 10-K’’), should be read in connection with the reading of these interim unaudited consolidated financial statements. Certain GAAP policies, which significantly affect the determination of financial condition, results of operations and cash flows, are summarized in our 2020 Form 10-K. In the opinion of management, these statements include all normal recurring adjustments necessary for a fair presentation of the Company’s results. Operating results for the three months ended March 31, 2021, are not necessarily indicative of the results that may be expected for the full year ending December 31, 2021 , especially when considering the risks and uncertainties associated with the COVID-19 pandemic and the future impacts of the pandemic on our business, results of operations and financial condition . All material inter-company accounts and transactions have been eliminated in consolidation . |
New Accounting Standards
New Accounting Standards | 3 Months Ended |
Mar. 31, 2021 | |
New Accounting Standards [Abstract] | |
New Accounting Standards | 2. New Accounting Standards The following table provides a description of our adoption of new Accounting Standards Updates (“ASUs”) issued by the Financial Accounting Standards Board (“FASB”) and the impact of the adoption on our consolidated financial statements. ASUs not listed below were assessed and determined to be either not applicable or insignificant in presentation or amount. Standard Description Effective Date Effect on Financial Statements or Other Significant Matters ASU 2020-04, Reference Rate Reform (Topic 848) and related amendments The amendments in this update provide optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. The amendments provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions impacted by reference rate reform. If certain criteria are met, an entity will not be required to remeasure or reassess contracts impacted by reference rate reform. Additionally, changes to the critical terms of a hedging relationship affected by reference rate reform will not require entities to de-designate the relationship if certain requirements are met. The expedients and exceptions provided by the amendments do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, with certain exceptions. The amendments are effective for contract modifications made between March 12, 2020, and December 31, 2022. March 12, 2020 through December 31, 2022 This standard may be elected and applied prospectively as reference rate reform unfolds. We have elected practical expedients to maintain hedge accounting for certain derivatives. We will continue to evaluate our options under this guidance as our reference rate reform adoption process continues. This ASU has not had a material impact to our consolidated financial condition and results of operations, but we will continue to evaluate those impacts as our transition progresses. 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 deferred acquisition costs. 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, 2023, and early adoption is permitted. January 1, 2023 We are currently evaluating the impact of adopting this ASU on our consolidated financial condition and results of operations. |
Variable Interest Entities
Variable Interest Entities | 3 Months Ended |
Mar. 31, 2021 | |
Variable Interest Entities [Abstract] | |
Variable Interest Entities | 3. Variable Interest Entities Unconsolidated Variable Interest Entities Structured Securities Through our investment activities, we make passive investments in structured securities issued by variable interest entities (“VIEs”) for which we are not the manager. These structured securities include our asset-backed securities (“ABS”), residential mortgage-backed securities (“RMBS”) and commercial mortgage-backed securities (“CMBS”). We have not provided financial or other support with respect to these VIEs other than our original investment. We have determined that we are not the primary beneficiary of these VIEs due to the relative size of our investment in comparison to the principal amount of the structured securities issued by the VIEs and the level of credit subordination that reduces our obligation to absorb losses or right to receive benefits. Our maximum exposure to loss on these structured securities is limited to the amortized cost for these investments. We recognize our variable interest in these VIEs at fair value on our Consolidated Balance Sheets. For information about these structured securities, see Note 4. Limited Partnerships and Limited Liability Companies We invest in certain limited partnerships (“LPs”) and limited liability companies (“LLCs”), including qualified affordable housing projects, that we have concluded are VIEs. Our exposure to loss is limited to the capital we invest in the LPs and LLCs. We do not hold any substantive kick-out or participation rights in the LPs and LLCs, and we do not receive any performance fees or decision maker fees from the LPs and LLCs. Based on our analysis of the LPs and LLCs, we are not the primary beneficiary of the VIEs as we do not have the power to direct the most significant activities of the LPs and LLCs. The carrying amounts of our investments in the LPs and LLCs are recognized in other investments on our Consolidated Balance Sheets and were $ 2.3 billion and $ 2.1 billion as of March 31, 2021, and December 31, 2020, respectively. Included in these carrying amounts are our investments in qualified affordable housing projects, which were $ 6 million and $ 7 million as of March 31, 2021, and December 31, 2020, respectively. We do not have any contingent commitments to provide additional capital funding to these qualified affordable housing projects. We received returns from these qualified affordable housing projects in the form of income tax credits and other tax benefits of $ 1 million and less than $ 1 million for the three months ended March 31, 2021 and 2020, respectively, which were recognized in federal income tax expense (benefit) on our Consolidated Statements of Comprehensive Income (Loss). |
Investments
Investments | 3 Months Ended |
Mar. 31, 2021 | |
Investments [Abstract] | |
Investments | 4. Investments Fixed Maturity AFS Securities The amortized cost, gross unrealized gains, losses, allowance for credit losses and fair value of fixed maturity available-for-sale (“AFS”) securities (in millions) were as follows: As of March 31, 2021 Allowance Amortized Gross Unrealized for Credit Fair Cost Gains Losses Losses Value Fixed maturity AFS securities: Corporate bonds $ 86,191 $ 9,974 $ 648 $ 13 $ 95,504 U.S. government bonds 365 49 3 - 411 State and municipal bonds 5,252 1,154 32 - 6,374 Foreign government bonds 424 63 6 - 481 RMBS 2,607 240 3 1 2,843 CMBS 1,455 67 15 - 1,507 ABS 7,875 142 27 - 7,990 Hybrid and redeemable preferred securities 515 91 21 - 585 Total fixed maturity AFS securities $ 104,684 $ 11,780 $ 755 $ 14 $ 115,695 As of December 31, 2020 Allowance Amortized Gross Unrealized for Credit Fair Cost Gains Losses Losses Value Fixed maturity AFS securities: Corporate bonds $ 85,625 $ 15,947 $ 136 $ 12 $ 101,424 U.S. government bonds 369 81 1 - 449 State and municipal bonds 5,145 1,517 - - 6,662 Foreign government bonds 380 86 1 - 465 RMBS 2,551 289 1 1 2,838 CMBS 1,380 115 - - 1,495 ABS 7,035 158 15 - 7,178 Hybrid and redeemable preferred securities 536 94 30 - 600 Total fixed maturity AFS securities $ 103,021 $ 18,287 $ 184 $ 13 $ 121,111 The amortized cost and fair value of fixed maturity AFS securities by contractual maturities (in millions) as of March 31, 2021, were as follows: Amortized Fair Cost Value Due in one year or less $ 3,210 $ 3,231 Due after one year through five years 15,083 15,965 Due after five years through ten years 19,614 21,218 Due after ten years 54,840 62,941 Subtotal 92,747 103,355 Structured securities (RMBS, CMBS, ABS) 11,937 12,340 Total fixed maturity AFS securities $ 104,684 $ 115,695 Actual maturities may differ from contractual maturities because issuers may have the right to call or pre-pay obligations. The fair value and gross unrealized losses of fixed maturity AFS securities (dollars in millions) for which an allowance for credit losses has not been recorded, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, were as follows: As of March 31, 2021 Less Than or Equal Greater Than to Twelve Months Twelve Months Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses (1) Fixed maturity AFS securities: Corporate bonds $ 11,558 $ 595 $ 686 $ 53 $ 12,244 $ 648 U.S. government bonds 25 3 - - 25 3 State and municipal bonds 719 32 - - 719 32 Foreign government bonds 99 6 - - 99 6 RMBS 198 3 6 - 204 3 CMBS 362 15 - - 362 15 ABS 2,400 24 164 3 2,564 27 Hybrid and redeemable preferred securities 124 8 91 13 215 21 Total fixed maturity AFS securities $ 15,485 $ 686 $ 947 $ 69 $ 16,432 $ 755 Total number of fixed maturity AFS securities in an unrealized loss position 1,723 As of December 31, 2020 Less Than or Equal Greater Than to Twelve Months Twelve Months Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses (1) Fixed maturity AFS securities: Corporate bonds $ 2,785 $ 85 $ 588 $ 51 $ 3,373 $ 136 U.S. government bonds 28 1 - - 28 1 Foreign government bonds 57 1 - - 57 1 RMBS 43 1 6 - 49 1 ABS 1,527 9 355 6 1,882 15 Hybrid and redeemable preferred securities 112 13 96 17 208 30 Total fixed maturity AFS securities $ 4,552 $ 110 $ 1,045 $ 74 $ 5,597 $ 184 Total number of fixed maturity AFS securities in an unrealized loss position 782 (1) As of March 31, 2021, and December 31, 2020, we recognized $ 2 million and $ 1 million, respectively, of gross unrealized losses in other comprehensive income (loss) (“OCI”) for fixed maturity AFS securities for which an allowance for credit losses has been recorded. The fair value, gross unrealized losses (in millions) and number of fixed maturity AFS securities where the fair value had declined and remained below amortized cost by greater than 20% were as follows: As of March 31, 2021 Gross Number Fair Unrealized of Value Losses Securities (1) Less than six months $ 50 $ 16 10 Six months or greater, but less than nine months 52 23 4 Nine months or greater, but less than twelve months 1 1 3 Twelve months or greater 27 8 28 Total $ 130 $ 48 45 As of December 31, 2020 Gross Number Fair Unrealized of Value Losses Securities (1) Less than six months $ 63 $ 23 14 Six months or greater, but less than nine months 2 1 4 Nine months or greater, but less than twelve months 22 6 13 Twelve months or greater 30 11 20 Total $ 117 $ 41 51 (1) We may reflect a security in more than one aging category based on various purchase dates. Our gross unrealized losses on fixed maturity AFS securities increased by $ 571 million for the three months ended March 31, 2021. As discussed further below, we believe the unrealized loss position as of March 31, 2021, did not require an impairment recognized in earnings as (i) we did not intend to sell these fixed maturity AFS securities; (ii) it is not more likely than not that we will be required to sell the fixed maturity AFS securities before recovery of their amortized cost basis; and (iii) the difference in the fair value compared to the amortized cost was due to factors other than credit loss. Based upon this evaluation as of March 31, 2021, management believes we have the ability to generate adequate amounts of cash from our normal operations (e.g., insurance premiums, fee income and investment income) to meet cash requirements with a prudent margin of safety without requiring the sale of our impaired securities. As of March 31, 2021, the unrealized losses associated with our corporate bond, U.S. government bond, state and municipal bond and foreign government bond securities were attributable primarily to widening credit spreads and rising interest rates since purchase. We performed a detailed analysis of the financial performance of the underlying issuers and determined that we expected to recover the entire amortized cost of each impaired security. Credit ratings express opinions about the credit quality of a security. Securities rated investment grade (those rated BBB- or higher by S&P Global Ratings (“S&P”) or Baa3 or higher by Moody’s Investors Service (“Moody’s”)) are generally considered by the rating agencies and market participants to be low credit risk. As of March 31, 2021, and December 31, 2020, 96 % of the fair value of our corporate bond portfolio was rated investment grade. As of March 31, 2021, and December 31, 2020, the portion of our corporate bond portfolio rated below investment grade had an amortized cost of $ 3.8 billion, and a fair value of $ 3.9 billion and $ 4.0 billion, respectively. Based upon the analysis discussed above, we believe that as of March 31, 2021, and December 31, 2020, we would have recovered the amortized cost of each corporate bond. As of March 31, 2021, the unrealized losses associated with our mortgage-backed securities and ABS were attributable primarily to widening credit spreads and rising interest rates since purchase. We assessed for credit impairment using a cash flow model that incorporates key assumptions including default rates, severities and prepayment rates. We estimated losses for a security by forecasting the underlying loans in each transaction. The forecasted loan performance was used to project cash flows to the various tranches in the structure, as applicable. Our forecasted cash flows also considered, as applicable, independent industry analyst reports and forecasts and other independent market data. Based upon our assessment of the expected credit losses of the security given the performance of the underlying collateral compared to our subordination or other credit enhancement, we expected to recover the entire amortized cost of each impaired security As of March 31, 2021, the unrealized losses associated with our hybrid and redeemable preferred securities were attributable primarily to wider credit spreads caused by illiquidity in the market and subordination within the capital structure, as well as credit risk of underlying issuers. For our hybrid and redeemable preferred securities, we evaluated the financial performance of the underlying issuers based upon credit performance and investment ratings and determined that we expected to recover the entire amortized cost of each impaired security. Credit Loss Impairment on Fixed Maturity AFS Securities We regularly review our fixed maturity AFS securities for declines in fair value that we determine to be impairment-related, including those attributable to credit risk factors that may require an allowance for credit losses. Changes in the allowance for credit losses on fixed maturity AFS securities (in millions), aggregated by investment category, were as follows: For the Three Months Ended March 31, 2021 Corporate Bonds RMBS ABS Total Balance as of beginning-of-year $ 12 $ 1 $ - $ 13 Additions from purchases of PCD debt securities (1) - - - - Additions (reductions) for securities for which credit losses were previously recognized 1 - - 1 Balance as of end-of-period (2) $ 13 $ 1 $ - $ 14 For the Three Months Ended March 31, 2020 Corporate Bonds RMBS ABS Total Balance as of beginning-of-year $ - $ - $ - $ - Additions for securities for which credit losses were not previously recognized 18 - - 18 Additions from purchases of PCD debt securities (1) - - - - Balance as of end-of-period (2) $ 18 $ - $ - $ 18 (1) Represents purchased credit-deteriorated (“PCD”) fixed maturity AFS securities. (2) Accrued interest receivable on fixed maturity AFS securities totaled $ 1.0 billion as of March 31, 2021 and 2020, and was excluded from the estimate of credit losses. 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 March 31, 2021 As of December 31, 2020 Commercial Residential Total Commercial Residential Total Current $ 16,577 $ 666 $ 17,243 $ 16,162 $ 610 $ 16,772 30 to 59 days past due 6 26 32 4 28 32 60 to 89 days past due - 8 8 - 8 8 90 or more days past due - 55 55 - 69 69 Allowance for credit losses ( 171 ) ( 12 ) ( 183 ) ( 186 ) ( 17 ) ( 203 ) Unamortized premium (discount) ( 13 ) 23 10 ( 14 ) 22 8 Mark-to-market gains (losses) (1) ( 6 ) - ( 6 ) ( 5 ) - ( 5 ) Total carrying value $ 16,393 $ 766 $ 17,159 $ 15,961 $ 720 $ 16,681 (1) Represents the mark-to-market on certain mortgage loans on real estate for which we have elected the fair value option. See Note 13 for additional information. Our commercial mortgage loan portfolio has the largest concentrations in California, which accounted for 25 % and 24 % of commercial mortgage loans on real estate as of March 31, 2021, and December 31, 2020, respectively, and Texas, which accounted for 10 % of commercial mortgage loans on real estate as of March 31, 2021, and December 31, 2020. Our residential mortgage loan portfolio has the largest concentrations in California, which accounted for 28 % and 32 % of residential mortgage loans on real estate as of March 31, 2021, and December 31, 2020, respectively, and Florida, which accounted for 19 % and 18 % of residential mortgage loans on real estate as of March 31, 2021, and December 31, 2020, respectively. As of March 31, 2021, and December 31, 2020, we had 113 and 147 residential mortgage loans, respectively, that were either delinquent or in foreclosure. For our commercial mortgage loans, there were nine specifically identified impaired loans with an aggregate carrying value of $ 3 million as of March 31, 2021. There were four specifically identified impaired loans with an aggregate carrying value of $ 1 million as of December 31, 2020. For our residential mortgage loans, there were 74 specifically identified impaired loans with an aggregate carrying value of $ 34 million as of March 31, 2021. There were 76 specifically identified impaired loans with an aggregate carrying value of $ 34 million as of December 31, 2020. Additional information related to impaired mortgage loans on real estate (in millions) was as follows: For the Three Months Ended March 31, 2021 2020 Average carrying value for impaired mortgage loans on real estate $ 36 $ 3 Interest income recognized on impaired mortgage loans on real estate - - Interest income collected on impaired mortgage loans on real estate - - The amortized cost of mortgage loans on real estate on nonaccrual status (in millions) was as follows: As of March 31, 2021 As of December 31, 2020 Nonaccrual Nonaccrual with no with no Allowance Allowance for Credit for Credit Losses Nonaccrual Losses Nonaccrual Commercial mortgage loans on real estate $ - $ - $ - $ - Residential mortgage loans on real estate - 57 - 71 Total $ - $ 57 $ - $ 71 We use loan-to-value and debt-service coverage ratios as credit quality indicators for our commercial mortgage loans on real estate. The amortized cost of commercial mortgage loans on real estate (dollars in millions) by year of origination and credit quality indicator was as follows: As of March 31, 2021 Debt- Debt- Debt- Service Service Service Less Coverage 65% Coverage Greater Coverage than 65% Ratio to 74% Ratio than 75% Ratio Total Origination Year 2021 $ 1,362 3.01 $ 109 1.47 $ 40 2.21 $ 1,511 2020 3,007 2.20 318 1.96 25 1.79 3,350 2019 2,335 2.16 214 1.54 15 0.76 2,564 2018 1,746 2.34 153 1.74 27 0.67 1,926 2017 6,241 2.39 263 1.75 30 1.40 6,534 2016 and prior 660 3.00 25 1.95 - - 685 Total $ 15,351 $ 1,082 $ 137 $ 16,570 As of December 31, 2020 Debt- Debt- Debt- Service Service Service Less Coverage 65% Coverage Greater Coverage than 65% Ratio to 74% Ratio than 75% Ratio Total Origination Year 2020 $ 1,495 2.85 $ 32 1.52 $ - - $ 1,527 2019 3,098 2.24 258 1.78 2 1.74 3,358 2018 2,379 2.16 182 1.49 15 0.71 2,576 2017 1,779 2.34 169 1.73 - - 1,948 2016 1,711 2.37 174 1.56 22 1.58 1,907 2015 and prior 4,695 2.38 133 1.95 8 1.02 4,836 Total $ 15,157 $ 948 $ 47 $ 16,152 We use loan performance status as the primary credit quality indicator for our residential mortgage loans on real estate. The amortized cost of residential mortgage loans on real estate (in millions) by year of origination and credit quality indicator was as follows: As of March 31, 2021 Performing Nonperforming Total Origination Year 2021 $ 71 $ 6 $ 77 2020 197 42 239 2019 295 9 304 2018 158 - 158 2017 - - - 2016 and prior - - - Total $ 721 $ 57 $ 778 As of December 31, 2020 Performing Nonperforming Total Origination Year 2020 $ 176 $ 8 $ 184 2019 315 51 366 2018 175 12 187 2017 - - - 2016 - - - 2015 and prior - - - Total $ 666 $ 71 $ 737 Credit Losses on Mortgage Loans on Real Estate In connection with our recognition of an allowance for credit losses for mortgage loans on real estate, we perform a quantitative analysis using a probability of default/loss given default/exposure at default approach to estimate expected credit losses in our mortgage loan portfolio as well as unfunded commitments related to commercial mortgage loans, exclusive of certain mortgage loans held at fair value. Changes in the allowance for credit losses on mortgage loans on real estate (in millions) were as follows: For the Three Months Ended March 31, 2021 Commercial Residential Total Balance as of beginning-of-year $ 186 $ 17 $ 203 Additions from provision for credit loss expense (1) 4 2 6 Additions from purchases of PCD mortgage loans on real estate - - - Additions (reductions) for mortgage loans on real estate for which credit losses were previously recognized (1) ( 19 ) ( 7 ) ( 26 ) Balance as of end-of-period (2) $ 171 $ 12 $ 183 For the Three Months Ended March 31, 2020 Commercial Residential Total Balance as of beginning-of-year $ - $ 2 $ 2 Impact of new accounting standard 61 26 87 Additions from provision for credit loss expense (3) 64 7 71 Additions from purchases of PCD mortgage loans on real estate - - - Balance as of end-of-period (2) $ 125 $ 35 $ 160 (1) Due to improving economic projections, the provision for credit loss expense decreased by $ 20 million for the three months ended March 31, 2021. For the three months ended March 31, 2021 , we recognized $ 4 million of credit loss benefit related to unfunded commitments for mortgage loans on real estate. (2) Accrued interest receivable on mortgage loans on real estate totaled $ 50 million as of March 31, 2021 and 2020, and was excluded from the estimate of credit losses. (3) Due to changes in economic projections driven by the impact of the COVID-19 pandemic, the provision for credit loss expense increased by $ 71 million for the three months ended March 31, 2020. For the three months ended March 31, 2020, we recognized $ 1 million of credit loss benefit related to unfunded commitments for mortgage loans on real estate. Alternative Investments As of March 31, 2021 , and December 31, 2020 , alternative investments included investments in 278 and 270 different partnerships, respectively, and represented approximately 1 % of total investments. Impairments on Fixed Maturity AFS Securities Details underlying credit loss expense incurred as a result of impairments that were recognized in net income (loss) and included in realized gain (loss) on fixed maturity AFS securities (in millions) were as follows: For the Three Months Ended March 31, 2021 2020 Credit Loss Expense Fixed maturity AFS securities: Corporate bonds $ ( 2 ) $ ( 18 ) RMBS - - ABS - - Gross credit loss expense ( 2 ) ( 18 ) Associated amortization of DAC, VOBA, DSI and DFEL (1) - - Net credit loss expense $ ( 2 ) $ ( 18 ) (1) Deferred acquisition costs (“DAC”), value of business acquired (“VOBA”), deferred sales inducements (“DSI”) and deferred front-end loads (“DFEL”) . 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 March 31, 2021 As of December 31, 2020 Carrying Fair Carrying Fair Value Value Value Value Collateral payable for derivative investments (1) $ 3,218 $ 3,218 $ 2,970 $ 2,970 Securities pledged under securities lending agreements (2) 145 140 115 112 Investments pledged for Federal Home Loan Bank of Indianapolis (“FHLBI”) (3) 4,230 6,819 3,130 5,049 Total payables for collateral on investments $ 7,593 $ 10,177 $ 6,215 $ 8,131 (1) We obtain collateral based upon contractual provisions with our counterparties. These agreements take into consideration the counterparties’ credit rating as compared to ours, the fair value of the derivative investments and specified thresholds that if exceeded result in the receipt of cash that is typically invested in cash and invested cash. See Note 5 for additional information. (2) Our pledged securities under securities lending agreements are included in fixed maturity AFS securities on our Consolidated Balance Sheets. We generally obtain collateral in an amount equal to 102 % and 105 % of the fair value of the domestic and foreign securities, respectively. We value collateral daily and obtain additional collateral when deemed appropriate. The cash received in our securities lending program is typically invested in cash and invested cash or fixed maturity AFS securities. (3) Our pledged investments for FHLBI are included in fixed maturity AFS securities and mortgage loans on real estate on our Consolidated Balance Sheets. The collateral requirements are generally 105 % to 115 % of the fair value for fixed maturity AFS securities and 155 % to 175 % of the fair value for mortgage loans on real estate. The cash received in these transactions is primarily invested in cash and invested cash or fixed maturity AFS securities. We have repurchase agreements through which we can obtain liquidity by pledging securities. 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 March 31, 2021, and December 31, 2020, we were not participating in any open repurchase agreements. Increase (decrease) in payables for collateral on investments (in millions) consisted of the following: For the Three Months Ended March 31, 2021 2020 Collateral payable for derivative investments $ 248 $ 2,561 Securities pledged under securities lending agreements 30 47 Investments pledged for FHLBI 1,100 750 Total increase (decrease) in payables for collateral on investments $ 1,378 $ 3,358 We have elected not to offset our securities lending transactions in our consolidated financial statements. The remaining contractual maturities of securities lending transactions accounted for as secured borrowings (in millions) were as follows: As of March 31, 2021 Overnight and Continuous Up to 30 Days 30 - 90 Days Greater Than 90 Days Total Securities Lending Corporate bonds $ 145 $ - $ - $ - $ 145 As of December 31, 2020 Overnight and Continuous Up to 30 Days 30 - 90 Days Greater Than 90 Days Total Securities Lending Corporate bonds $ 114 $ - $ - $ - $ 114 Foreign government bonds 1 - - - 1 Total gross secured borrowings $ 115 $ - $ - $ - $ 115 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 that we are permitted to sell or re-pledge. As of March 31, 2021, the fair value of all collateral received that we are permitted to sell or re-pledge was $ 22 million, and we had not re-pledged any of this collateral to cover initial margin and over-the-counter collateral requirements on certain derivative investments as of March 31, 2021. Investment Commitments As of March 31, 2021, our investment commitments were $ 2.0 billion, which included $ 1.1 billion of LPs, $ 416 million of mortgage loans on real estate and $ 400 million of private placement securities. Concentrations of Financial Instruments As of March 31, 2021, our most significant investments in one issuer were our investments in securities issued by the Federal Home Loan Mortgage Corporation and by the Federal National Mortgage Association with a fair value of $ 1.1 billion and $ 1.0 billion, respectively, or 1 % of total investments. As of December 31, 2020, our most significant investments in one issuer were our investments in securities issued by the Federal Home Loan Mortgage Corporation and by White Chapel LLC with a fair value of $ 1.2 billion and $ 1.0 billion, respectively, or 1 % of total investments. These concentrations include fixed maturity AFS, trading and equity securities. As of March 31, 2021, and December 31, 2020, our most significant investments in one industry were our investments in securities in the financial services industry with a fair value of $ 20.7 billion and $ 21.7 billion, respectively, or 14 % of total investments, and our investments in securities in the consumer non-cyclical industry with a fair value of $ 17.9 billion and $ 19.2 billion, respectively, or 12 % and 13 %, respectively, of total investments. These concentrations include fixed maturity AFS, trading and equity securities. |
Derivative Instruments
Derivative Instruments | 3 Months Ended |
Mar. 31, 2021 | |
Derivative Instruments [Abstract] | |
Derivative Instruments | 5. Derivative Instruments We maintain an overall risk management strategy that incorporates the use of derivative instruments to minimize significant unplanned fluctuations in earnings that are caused by interest rate risk, foreign currency exchange risk, equity market risk, basis risk and credit risk. We assess these risks by continually identifying and monitoring changes in our exposures that may adversely affect expected future cash flows and by evaluating hedging opportunities. Derivative activities are monitored by various management committees. The committees are responsible for overseeing the implementation of various hedging strategies that are developed through the analysis of financial simulation models and other internal and industry sources. The resulting hedging strategies are incorporated into our overall risk management strategies. See Note 13 for additional disclosures related to the fair value of our derivative instruments. Interest Rate Contracts We use derivative instruments as part of our interest rate risk management strategy. These instruments are economic hedges unless otherwise noted and include: Forward-Starting Interest Rate Swaps We use forward-starting interest rate swaps designated and qualifying as cash flow hedges to hedge our exposure to interest rate fluctuations related to the forecasted purchases of certain assets. We also use forward-starting interest rate swaps to hedge the interest rate exposure within our life products related to the forecasted purchases of certain assets. Interest Rate Cap Corridors We use interest rate cap corridors to provide a level of protection from the effect of rising interest rates for certain life insurance products and annuity contracts. Interest rate cap corridors involve purchasing an interest rate cap at a specific cap rate and selling an interest rate cap with a higher cap rate. For each corridor, the amount of quarterly payments, if any, is determined by the rate at which the underlying index rate resets above the original capped rate. The corridor limits the benefit the purchaser can receive as the related interest rate index rises above the higher capped rate. There is no additional liability to us other than the purchase price associated with the interest rate cap corridor. Interest Rate Futures We use interest rate futures contracts to hedge the liability exposure on certain options in variable annuity products. These futures contracts require payment between our counterparty and us on a daily basis for changes in the futures index price. Interest Rate Swap Agreements We use interest rate swap agreements to hedge the liability exposure on certain options in variable annuity products. We also use interest rate swap agreements designated and qualifying as cash flow hedges to hedge the interest rate risk of floating-rate bond coupon payments by replicating a fixed-rate bond. Finally, we use interest rate swap agreements designated and qualifying as fair value hedges to hedge against changes in the fair value of certain fixed 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 ® Index 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 S&P 500 Index or other indices. Contract holders may elect to rebalance index options at renewal dates. At the end of each indexed term, which can be up to six years , we have the opportunity to re-price the indexed component by establishing participation rates, caps, spreads and specified rates, subject to contractual guarantees. We use call options that are highly correlated to the portfolio allocation decisions of our contract holders, such that we are economically hedged with respect to equity returns for the current reset period. Consumer Price Index Swaps We use consumer price index swaps to hedge the liability exposure on certain options in fixed annuity products. Consumer price index swaps are contracts entered into at no cost and whose payoff is the difference between the consumer price index inflation rate and the fixed-rate determined as of inception. Equity Futures We use equity futures contracts to hedge the liability exposure on certain options in variable annuity products. These futures contracts require payment between our counterparty and us on a daily basis for changes in the futures index price. Put Options We use put options to hedge the liability exposure on certain options in variable annuity products. Put options are contracts that require counterparties to pay us at a specified future date the amount, if any, by which a specified equity index is less than the strike rate stated in the agreement, applied to a notional amount. Total Return Swaps We use total return swaps to hedge the liability exposure on certain options in variable annuity products. In addition, we use total return swaps to hedge a portion of the liability related to our deferred compensation plans. We receive the total return on a portfolio of indexes and pay a floating-rate of interest. Credit Contracts We use derivative instruments as part of our credit risk management strategy that are economic hedges and include: Credit Default Swaps – Buying Protection We use credit default swaps to hedge the liability exposure on certain options in variable annuity products. We buy credit default swaps to hedge against a drop in bond prices due to credit concerns of certain bond issuers. A credit default swap allows us to put the bond back to the counterparty at par upon a default event by the bond issuer. A default event is defined as bankruptcy, failure to pay, obligation acceleration or restructuring. Credit Default Swaps – Selling Protection We use credit default swaps to hedge the liability exposure on certain options in variable annuity products. We sell credit default swaps to offer credit protection to contract holders and investors. The credit default swaps hedge the contract holders and investors against a drop in bond prices due to credit concerns of certain bond issuers. A credit default swap allows the investor to put the bond back to us at par upon a default event by the bond issuer. A default event is defined as bankruptcy, failure to pay, obligation acceleration or restructuring. Other Derivatives Lapse Protection Rider (“LPR”) Ceded Derivative We also have an inter-company agreement through which LNBAR, an affiliated insurer, assumes the risk under certain UL contracts for no-lapse benefit guarantees. If the contract holder’s account value is insufficient to pay the cost of insurance charges required to keep the policy in force, and the contract holder has made the required deposits, we will be reimbursed for those charges. Embedded Derivatives We have embedded derivatives that include: GLB Reserves Embedded Derivatives 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 Accounting Standards Codification (“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 guaranteed living benefit (“GLB”) feature. We use a hedging strategy designed to mitigate the risk and income statement volatility caused by changes in the equity markets, interest rates and volatility associated with GLBs offered in our variable annuity products, including products with guaranteed withdrawal benefit and guaranteed income benefit features. These GLB features are reinsured among various reinsurance counterparties on a coinsurance basis. We cede a portion of the GLB features to Lincoln National Reinsurance Company (Barbados) Limited (“LNBAR”), a wholly-owned subsidiary of LNC, on a funds withheld coinsurance 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 income statement effect of changes in embedded derivative GLB reserves assumed by LNBAR caused by those same factors. We rebalance our hedge positions based upon changes in these factors as needed. While we actively manage our hedge positions, these hedge positions may not be totally effective in offsetting changes in the embedded derivative reserve 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 our 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. 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 ® Index or other indices. Contract holders may elect to rebalance index options at renewal dates. At the end of each indexed term, we have the opportunity to re-price the indexed component by establishing participation rates, caps, spreads and specified rates, subject to contractual guarantees. We use options that are highly correlated to the portfolio allocation decisions of our contract holders, such that we are economically hedged with respect to equity returns for the current reset period. Reinsurance Related Embedded Derivatives We have certain modified coinsurance (“Modco”) and coinsurance with funds withheld reinsurance agreements with embedded derivatives related to the withheld assets of the related funds. These derivatives are considered total return swaps with contractual returns that are attributable to various assets and liabilities associated with these reinsurance agreements. We have derivative instruments with off-balance-sheet risks whose notional or contract amounts exceed the related credit exposure. Outstanding derivative instruments with off-balance-sheet risks (in millions) were as follows: As of March 31, 2021 As of December 31, 2020 Notional Fair Value Notional Fair Value Amounts Asset Liability Amounts Asset Liability Qualifying Hedges Cash flow hedges: Interest rate contracts (1) $ 1,899 $ 7 $ 133 $ 964 $ 87 $ 11 Foreign currency contracts (1) 3,249 119 147 3,089 147 151 Total cash flow hedges 5,148 126 280 4,053 234 162 Fair value hedges: Interest rate contracts (1) 528 - 187 530 - 271 Non-Qualifying Hedges Interest rate contracts (1) 73,433 1,225 308 135,434 1,587 159 Foreign currency contracts (1) 410 4 6 304 1 8 Equity market contracts (1) 77,997 3,949 1,298 74,300 3,486 1,952 Credit contracts (1) 85 - - 51 - - LPR ceded derivative (2) - 268 - - - - Embedded derivatives: GLB direct (3) - 1,831 - - 450 - GLB ceded (3) - 42 1,869 - 82 531 Reinsurance related (4) - - 516 - - 540 Indexed annuity and IUL contracts (3) (5) - 527 4,170 - 550 3,594 Total derivative instruments $ 157,601 $ 7,972 $ 8,634 $ 214,672 $ 6,390 $ 7,217 (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 assets and other liabilities on our Consolidated Balance Sheets. (4) Reported in reinsurance related embedded derivatives on our Consolidated Balance Sheets. (5) Reported in future contract benefits on our Consolidated Balance Sheets. The maturity of the notional amounts of derivative instruments (in millions) was as follows: Remaining Life as of March 31, 2021 Less Than 1 – 5 6 – 10 11 – 30 Over 30 1 Year Years Years Years Years Total Interest rate contracts (1) $ 2,251 $ 48,239 $ 14,295 $ 11,070 $ 5 $ 75,860 Foreign currency contracts (2) 354 400 1,249 1,559 97 3,659 Equity market contracts 44,952 18,172 6,274 11 8,588 77,997 Credit contracts - 20 65 - - 85 Total derivative instruments with notional amounts $ 47,557 $ 66,831 $ 21,883 $ 12,640 $ 8,690 $ 157,601 (1) As of March 31, 2021, the latest maturity date for which we were hedging our exposure to the variability in future cash flows for these instruments was November 22, 2023. (2) As of March 31, 2021, the latest maturity date for which we were hedging our exposure to the variability in future cash flows for these instruments was June 16, 2061. The following amounts (in millions) were recorded on the Consolidated Balance Sheets related to cumulative basis adjustments for fair value hedges: Cumulative Fair Value Hedging Adjustment Included in the Amortized Cost of the Amortized Cost of the Hedged Hedged Assets / (Liabilities) Assets / (Liabilities) As of As of As of As of March 31, December 31, March 31, December 31, 2021 2020 2021 2020 Line Item in the Consolidated Balance Sheets in which the Hedged Item is Included Fixed maturity AFS securities, at fair value $ 738 $ 824 $ 187 $ 271 The change in our unrealized gain (loss) on derivative instruments within accumulated other comprehensive income (loss) (“AOCI”) (in millions) was as follows: For the Three Months Ended March 31, 2021 2020 Unrealized Gain (Loss) on Derivative Instruments Balance as of beginning-of-year $ 42 $ 181 Other comprehensive income (loss): Unrealized holding gains (losses) arising during the period: Cash flow hedges: Interest rate contracts ( 203 ) 241 Foreign currency contracts ( 63 ) 312 Change in foreign currency exchange rate adjustment 47 153 Change in DAC, VOBA, DSI and DFEL 14 ( 48 ) Income tax benefit (expense) 43 ( 140 ) Less: Reclassification adjustment for gains (losses) included in net income (loss): Cash flow hedges: Interest rate contracts (1) 1 - Foreign currency contracts (1) 10 11 Foreign currency contracts (2) ( 2 ) 1 Associated amortization of DAC, VOBA, DSI and DFEL ( 1 ) ( 1 ) Income tax benefit (expense) ( 2 ) ( 2 ) Balance as of end-of-period $ ( 126 ) $ 690 (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 Three Months Ended March 31, 2021 2020 Realized Net Realized Net Gain Investment Gain Investment (Loss) Income Benefits (Loss) Income Benefits Total Line Items in which the Effects of Fair Value or Cash Flow Hedges are Recorded $ 211 $ 1,447 $ 2,182 $ ( 2 ) $ 1,318 $ 1,822 Qualifying Hedges Gain or (loss) on fair value hedging relationships: Interest rate contracts: Hedged items - ( 84 ) - - 127 - Derivatives designated as hedging instruments - 84 - - ( 127 ) - Gain or (loss) on cash flow hedging relationships: Interest rate contracts: Amount of gain or (loss) reclassified from AOCI into income - 1 - - - - Foreign currency contracts: Amount of gain or (loss) reclassified from AOCI into income ( 2 ) 10 - 1 11 - Non-Qualifying Hedges Interest rate contracts ( 1,159 ) - - 2,150 - - Equity market contracts 1,242 - - 1,070 - - Credit contracts - - - ( 4 ) - - LPR ceded derivative - - 50 - - - Embedded derivatives: GLB 3 - - ( 7 ) - - Reinsurance related 342 - - 596 - - Indexed annuity and IUL contracts ( 594 ) - - 1,028 - - As of March 31, 2021, $ 49 million of the deferred net gains (losses) on derivative instruments in AOCI were expected to be reclassified to earnings during the next 12 months. This reclassification would be due primarily to interest rate variances related to our interest rate swap agreements. For the three months ended March 31, 2021 and 2020, there were no material reclassifications to earnings due to hedged firm commitments no longer deemed probable or due to hedged forecasted transactions that had not occurred by the end of the originally specified time period. Information related to our credit default swaps for which we are the seller (dollars in millions) was as follows: As of March 31, 2021 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 12/20/2025 (3) (4) BBB+ 1 $ - $ 20 Basket credit default swaps 6/20/2026 (3) (4) BBB+ 1 2 65 As of December 31, 2020 Credit Reason Nature Rating of Number Maximum for of Underlying of Fair Potential Credit Contract Type Maturity Entering Recourse Obligation (1) Instruments Value (2) Payout Basket credit default swaps 12/20/2025 (3) (4) BBB+ 1 $ 1 $ 51 (1) Represents average credit ratings based on the midpoint of the applicable ratings among Moody’s, S&P and Fitch Ratings, as scaled to the corresponding S&P ratings. (2) Broker quotes are used to determine the market value of our credit default swaps. (3) Credit default swaps were entered into in order to hedge the liability exposure on certain variable annuity products. (4) Sellers do not have the right to demand indemnification or compensation from third parties in case of a loss (payment) on the contract. Details underlying the associated collateral of our credit default swaps for which we are the seller if credit risk-related contingent features were triggered (in millions) were as follows: As of As of March 31, December 31, 2021 2020 Maximum potential payout $ 85 $ 51 Less: Counterparty thresholds - - Maximum collateral potentially required to post $ 85 $ 51 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, our counterparties would have been required to post $ 2 million of collateral as of March 31, 2021. Credit Risk We are exposed to credit losses in the event of non-performance by our counterparties on various derivative contracts and reflect assumptions regarding the credit or non-performance risk (“NPR”). The NPR is based upon assumptions for each counterparty’s credit spread over the estimated weighted average life of the counterparty exposure, less collateral held. As of March 31, 2021, 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 March 31, 2021, or December 31, 2020. The amounts recognized (in millions) by S&P credit rating of counterparty, for which we had the right to reclaim cash collateral or were obligated to return cash collateral, were as follows: As of March 31, 2021 As of December 31, 2020 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- $ 1,453 $ ( 11 ) $ 1,232 $ ( 7 ) A+ 1,316 ( 119 ) 1,112 ( 175 ) A 60 - 53 - A- 388 - 572 - $ 3,217 $ ( 130 ) $ 2,969 $ ( 182 ) Balance Sheet Offsetting Information related to the effects of offsetting (in millions) was as follows: As of March 31, 2021 Embedded Derivative Derivative Instruments Instruments Total Financial Assets Gross amount of recognized assets $ 5,680 $ 2,400 $ 8,080 Gross amounts offset ( 1,848 ) - ( 1,848 ) Net amount of assets 3,832 2,400 6,232 Gross amounts not offset: Cash collateral ( 3,217 ) - ( 3,217 ) Non-cash collateral ( 372 ) - ( 372 ) Net amount $ 243 $ 2,400 $ 2,643 Financial Liabilities Gross amount of recognized liabilities $ 666 $ 6,555 $ 7,221 Gross amounts offset ( 4 ) - ( 4 ) Net amount of liabilities 662 6,555 7,217 Gross amounts not offset: Cash collateral ( 130 ) - ( 130 ) Non-cash collateral - - - Net amount $ 532 $ 6,555 $ 7,087 As of December 31, 2020 Embedded Derivative Derivative Instruments Instruments Total Financial Assets Gross amount of recognized assets $ 4,978 $ 1,082 $ 6,060 Gross amounts offset ( 1,869 ) - ( 1,869 ) Net amount of assets 3,109 1,082 4,191 Gross amounts not offset: Cash collateral ( 2,969 ) - ( 2,969 ) Non-cash collateral ( 56 ) - ( 56 ) Net amount $ 84 $ 1,082 $ 1,166 Financial Liabilities Gross amount of recognized liabilities $ 902 $ 4,665 $ 5,567 Gross amounts offset ( 330 ) - ( 330 ) Net amount of liabilities 572 4,665 5,237 Gross amounts not offset: Cash collateral ( 182 ) - ( 182 ) Non-cash collateral - - - Net amount $ 390 $ 4,665 $ 5,055 |
Federal Income Taxes
Federal Income Taxes | 3 Months Ended |
Mar. 31, 2021 | |
Federal Income Taxes [Abstract] | |
Federal Income Taxes | 6. Federal Income Taxes The effective tax rate is the ratio of tax expense (benefit) over pre-tax income (loss). The effective tax rate was 18 % and 16 % for the three months ended March 31, 2021 and 2020, respectively. The effective tax rate on pre-tax income is typically lower than the prevailing corporate federal income tax rate of 21 % due to benefits from preferential tax items including the separate accounts dividends-received deduction and tax credits. |
Reinsurance
Reinsurance | 3 Months Ended |
Mar. 31, 2021 | |
Reinsurance [Abstract] | |
Reinsurance | 7. Reinsurance Credit Losses on Reinsurance-related Assets In connection with our recognition of an allowance for credit losses for reinsurance-related assets, we perform a quantitative analysis using a probability of loss approach to estimate expected credit losses for reinsurance recoverables, inclusive of similar assets recognized using the deposit method of accounting. As of March 31, 2021, our allowance for credit losses for reinsurance-related assets was $ 191 million. There have been no material changes to the allowance for credit losses for the three months ended March 31, 2021. Modco Agreements Some portions of our annuity business have been reinsured on a Modco basis with other companies. In a Modco agreement, we as the ceding company retain the reserves, as well as the assets backing those reserves, and the reinsurer shares proportionally in all financial terms of the reinsured policies based on their respective percentage of the risk. Effective October 1, 2018, we entered into one such Modco agreement with Athene Holding Ltd. (“Athene”) to reinsure fixed and fixed indexed annuity products, which resulted in a deposit asset of $ 5.6 billion and $ 5.8 billion as of March 31, 2021, and December 31, 2020, respectively, within other assets on our Consolidated Balance Sheets. We held assets in support of reserves associated with the transaction in a Modco investment portfolio, which consisted of the following (in millions): As of As of March 31, December 31, 2021 2020 Fixed maturity AFS securities $ 1,357 $ 1,531 Trading securities 3,293 3,357 Equity securities 20 17 Mortgage loans on real estate 875 832 Derivative investments 106 103 Other investments 212 167 Cash and invested cash 81 92 Accrued investment income 39 42 Other assets 6 3 Total $ 5,989 $ 6,144 In addition, the portfolio was supported by $ 175 million of over-collateralization and a $ 163 million letter of credit as of March 31, 2021. |
Guaranteed Benefit Features
Guaranteed Benefit Features | 3 Months Ended |
Mar. 31, 2021 | |
Guaranteed Benefit Features [Abstract] | |
Guaranteed Benefit Features | 8. Guaranteed Benefit Features Information on the guaranteed death benefit (“GDB”) features outstanding (dollars in millions) was as follows: As of As of March 31, December 31, 2021 (1) 2020 (1) Return of Net Deposits Total account value $ 111,818 $ 109,856 Net amount at risk (2) 77 72 Average attained age of contract holders 66 years 66 years Minimum Return Total account value $ 99 $ 100 Net amount at risk (2) 12 12 Average attained age of contract holders 78 years 78 years Guaranteed minimum return 5 % 5 % Anniversary Contract Value Total account value $ 27,903 $ 27,650 Net amount at risk (2) 410 390 Average attained age of contract holders 72 years 72 years (1) Our variable contracts with guarantees may offer more than one type of guarantee in each contract; therefore, the amounts listed are not mutually exclusive. (2) Represents the amount of death benefit in excess of the account balance that is subject to market fluctuations. The determination of GDB liabilities is based on models that involve a range of scenarios and assumptions, including those regarding expected market rates of return and volatility, contract surrender rates and mortality experience. The following summarizes the balances of and changes in the liabilities for GDBs (in millions), which were recorded in future contract benefits on our Consolidated Balance Sheets: For the Three Months Ended March 31, 2021 2020 Balance as of beginning-of-year $ 121 $ 117 Changes in reserves 8 106 Benefits paid ( 5 ) ( 8 ) Balance as of end-of-period $ 124 $ 215 Variable Annuity Contracts Account balances of variable annuity contracts, including those with guarantees, (in millions) were invested in separate account investment options as follows: As of As of March 31, December 31, 2021 2020 Asset Type Domestic equity $ 71,993 $ 70,362 International equity 20,813 20,855 Fixed income 43,920 43,521 Total $ 136,726 $ 134,738 Percent of total variable annuity separate account values 98 % 98 % Secondary Guarantee Products Future contract benefits and other contract holder funds include reserves for our secondary guarantee products sold through our Life Insurance segment. Reserves on UL and VUL products with secondary guarantees represented 37 % of total life insurance in-force reserves as of March 31, 2021, and December 31, 2020. UL and VUL products with secondary guarantees represented 14 % and 29 % of total life insurance sales for the three months ended March 31, 2021 and 2020, respectively. |
Liability For Unpaid Claims
Liability For Unpaid Claims | 3 Months Ended |
Mar. 31, 2021 | |
Liability For Unpaid Claims [Abstract] | |
Liability For Unpaid Claims | 9. Liability for Unpaid Claims The liability for unpaid claims consists primarily of long-term disability claims and is reported in future contract benefits on our Consolidated Balance Sheets. Changes in the liability for unpaid claims (in millions) were as follows: For the Three Months Ended March 31, 2021 2020 Balance as of beginning-of-year $ 5,934 $ 5,552 Reinsurance recoverable 151 152 Net balance as of beginning-of-year 5,783 5,400 Incurred related to: Current year 1,025 885 Prior years: Interest 42 43 All other incurred (1) ( 101 ) ( 65 ) Total incurred 966 863 Paid related to: Current year ( 302 ) ( 240 ) Prior years ( 601 ) ( 518 ) Total paid ( 903 ) ( 758 ) Net balance as of end-of-period 5,846 5,505 Reinsurance recoverable 151 150 Balance as of end-of-period $ 5,997 $ 5,655 (1) All other incurred is primarily impacted by the level of claim resolutions in the period compared to that which is expected by the reserve assumption. A negative number implies a favorable result where claim resolutions were more favorable than assumed. Our claim resolution rate assumption used in determining reserves is our expectation of the resolution rate we will experience over the long-term life of the block of claims. It will vary from actual experience in any one period, both favorably and unfavorably. The interest rate assumption used for discounting long-term claim reserves is an important part of the reserving process due to the long benefit period for these claims. Interest accrued on prior years’ reserves has been calculated on the opening reserve balance less one-half of the prior years’ incurred claim payments at our average reserve discount rate. Long-term disability benefits may extend for many years, and claim development schedules do not reflect these longer benefit periods. As a result, we use longer term retrospective runoff studies, experience studies and prospective studies to develop our liability estimates. |
Contingencies and Commitments
Contingencies and Commitments | 3 Months Ended |
Mar. 31, 2021 | |
Contingencies and Commitments [Abstract] | |
Contingencies and Commitments | 10. 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 March 31, 2021. For some matters, the Company is able to estimate a reasonably possible range of loss. For such matters in which a loss is probable, an accrual has been made. For such matters where a loss is believed to be reasonably possible, but not probable, no accrual has been made. Accordingly, the estimate contained in this paragraph reflects two types of matters. For some matters included within this estimate, an accrual has been made, but there is a reasonable possibility that an exposure exists in excess of the amount accrued. In these cases, the estimate reflects the reasonably possible range of loss in excess of the accrued amount. For other matters included within this estimation, no accrual has been made because a loss, while potentially estimable, is believed to be reasonably possible but not probable. In these cases, the estimate reflects the reasonably possible loss or range of loss. As of March 31, 2021 , 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 $ 120 million, after-tax. 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 . Among other matters, we are presently engaged in litigation, including relating to cost of insurance rates (“Cost of Insurance and Other Litigation”), as described below. No accrual has been made for several of these matters. Although a loss is believed to be reasonably possible for these matters, we are not able to estimate a reasonably possible amount or range of potential liability. An adverse outcome in one or more of these matters may have a material impact on our consolidated financial statements, but, based on information currently known, management does not believe those cases are likely to have such an impact. Reinsurance Disputes Certain reinsurers have sought rate increases on certain yearly renewable term agreements. We are disputing the requested rate increases under these agreements. We will initiate arbitration proceedings, as necessary, under these agreements in order to protect our contractual rights. Additionally, reinsurers have initiated, and may in the future initiate, arbitration proceedings against us. We believe it is unlikely the outcome of these disputes would have a material impact on our consolidated financial statements. For more information about reinsurance, see Note 7. Cost of Insurance and Other Litigation 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. Lincoln Life & Annuity Company of New York (“LLANY”) and Voya Retirement Insurance and Annuity Company (“Voya”) , filed in the U.S. District Court for the Southern District of New York, No. 1:16-cv-6399, is a putative class action that was served on LLANY on August 12, 2016. Plaintiff owns a universal life policy originally issued by Aetna (now Voya) and alleges that (i) Voya breached the terms of the policy when it increased non-guaranteed cost of insurance rates on Plaintiff’s policy; and (ii) LLANY, as reinsurer and administrator of Plaintiff’s policy, engaged in wrongful conduct related to the cost of insurance increase and was unjustly enriched as a result. Plaintiff seeks to represent all owners of Aetna life insurance policies that were subject to non-guaranteed cost of insurance rate increases in 2016 and seeks damages on their behalf. On March 13, 2019, the court issued an order granting plaintiff’s motion for class certification for the breach of contract claim and denying such motion with respect to the unjust enrichment claim against LLANY, and, on September 12, 2019, the court issued an order approving the parties’ joint stipulation of dismissal with respect to the unjust enrichment claim and dismissed LLANY as a defendant in the case. In light of LLANY’s role as reinsurer and administrator under the 1998 coinsurance agreement with Aetna (now Voya), and of the parties’ rights and obligations thereunder, LLANY continues to be actively engaged in the defense of this case. On September 30, 2020, the court denied plaintiff’s motion for summary judgment and granted in part Voya’s motion for summary judgment. The court has not yet set a trial date, and we continue to vigorously defend 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. Other Litigation Andrew Nitkewicz v. Lincoln Life & Annuity Company of New York, pending in the U.S. District Court for the Southern District of New York, No. 1:20-cv-06805, is a putative class action that was filed on August 24, 2020. Plaintiff Andrew Nitkewicz, as trustee of the Joan C. Lupe Trust, 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 for which planned annual, semi-annual, or quarterly premiums were paid for any period beyond the end of the policy month of the insured’s death. Plaintiff alleges LLANY failed to refund unearned premium in violation of New York Insurance Law Section 3203(a)(2) in connection with the payment of death benefit claims for certain insurance policies. Plaintiff seeks compensatory damages and pre-judgment interest on behalf of the various classes and sub-class. We are vigorously defending this matter. |
Shares and Stockholder's Equity
Shares and Stockholder's Equity | 3 Months Ended |
Mar. 31, 2021 | |
Shares and Stockholder's Equity [Abstract] | |
Shares and Stockholder's Equity | 11. Shares and Stockholder’s Equity All authorized and issued shares of LNL are owned by LNC. AOCI The following summarizes the components and changes in AOCI (in millions): For the Three Months Ended March 31, 2021 2020 Unrealized Gain (Loss) on Fixed Maturity AFS Securities Balance as of beginning-of-year $ 8,993 $ 5,637 Cumulative effect from adoption of new accounting standard - 40 Unrealized holding gains (losses) arising during the period ( 7,077 ) ( 4,357 ) Change in foreign currency exchange rate adjustment ( 41 ) ( 150 ) Change in DAC, VOBA, DSI, future contract benefits and other contract holder funds 3,287 1,263 Income tax benefit (expense) 817 691 Less: Reclassification adjustment for gains (losses) included in net income (loss) 1 ( 3 ) Associated amortization of DAC, VOBA, DSI and DFEL ( 4 ) 27 Income tax benefit (expense) 1 ( 5 ) Balance as of end-of-period $ 5,981 $ 3,105 Unrealized Other-Than-Temporary-Impairment on Fixed Maturity AFS Securities Balance as of beginning-of-year $ - $ 40 Cumulative effect from adoption of new accounting standard - ( 40 ) Balance as of end-of-period $ - $ - Unrealized Gain (Loss) on Derivative Instruments Balance as of beginning-of-year $ 42 $ 181 Unrealized holding gains (losses) arising during the period ( 266 ) 553 Change in foreign currency exchange rate adjustment 47 153 Change in DAC, VOBA, DSI and DFEL 14 ( 48 ) Income tax benefit (expense) 43 ( 140 ) Less: Reclassification adjustment for gains (losses) included in net income (loss) 9 12 Associated amortization of DAC, VOBA, DSI and DFEL ( 1 ) ( 1 ) Income tax benefit (expense) ( 2 ) ( 2 ) Balance as of end-of-period $ ( 126 ) $ 690 Funded Status of Employee Benefit Plans Balance as of beginning-of-year $ ( 14 ) $ ( 22 ) Adjustment arising during the period ( 1 ) - Balance as of end-of-period $ ( 15 ) $ ( 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 Three Months Ended March 31, 2021 2020 Unrealized Gain (Loss) on Fixed Maturity AFS Securities Gross reclassification $ 1 $ ( 3 ) Realized gain (loss) Associated amortization of DAC, VOBA, DSI and DFEL ( 4 ) 27 Realized gain (loss) Reclassification before income Income (loss) from continuing tax benefit (expense) ( 3 ) 24 operations before taxes Income tax benefit (expense) 1 ( 5 ) Federal income tax expense (benefit) Reclassification, net of income tax $ ( 2 ) $ 19 Net income (loss) Unrealized Gain (Loss) on Derivative Instruments Gross reclassifications: Interest rate contracts $ 1 $ - Net investment income Foreign currency contracts 10 11 Net investment income Foreign currency contracts ( 2 ) 1 Realized gain (loss) Total gross reclassifications 9 12 Associated amortization of DAC, VOBA, DSI and DFEL ( 1 ) ( 1 ) Commissions and other expenses Reclassifications before income Income (loss) from continuing tax benefit (expense) 8 11 operations before taxes Income tax benefit (expense) ( 2 ) ( 2 ) Federal income tax expense (benefit) Reclassifications, net of income tax $ 6 $ 9 Net income (loss) |
Realized Gain (Loss)
Realized Gain (Loss) | 3 Months Ended |
Mar. 31, 2021 | |
Realized Gain (Loss) [Abstract] | |
Realized Gain (Loss) | 12. Realized Gain (Loss) Realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss) includes realized gains and losses from the sale of investments, write-downs for impairments of investments and changes in the allowance for credit losses for financial assets, changes in fair value for mortgage loans on real estate accounted for under the fair value option, changes in fair value of equity securities, certain derivative and embedded derivative gains and losses, gains and losses on the sale of subsidiaries and businesses and net gains and losses on reinsurance embedded derivatives and trading securities. Realized gains and losses on the sale of investments are determined using the specific identification method. Realized gain (loss) is recognized in net income, net of associated amortization of DAC, VOBA, DSI and DFEL. Realized gain (loss) is also net of allocations of investment gains and losses to certain contract holders and certain funds withheld on reinsurance arrangements for which we have a contractual obligation. Details underlying realized gain (loss) (in millions) were as follows: For the Three Months Ended March 31, 2021 2020 Fixed maturity AFS securities: Gross gains $ 10 $ 5 Gross losses ( 9 ) ( 8 ) Credit loss benefit (expense) (1) ( 2 ) ( 18 ) Realized gain (loss) on equity securities (2) 10 ( 19 ) Credit loss benefit (expense) on mortgage loans on real estate 24 ( 70 ) Other gain (loss) on investments 3 ( 1 ) Associated amortization of DAC, VOBA, DSI and DFEL and changes in other contract holder funds ( 5 ) 26 Total realized gain (loss) related to certain financial assets 32 ( 85 ) Realized gain (loss) on the mark-to-market on certain instruments (3)(4) 218 184 Indexed annuity and IUL contracts net derivatives results: (5) Gross gain (loss) 32 ( 49 ) Associated amortization of DAC, VOBA, DSI and DFEL ( 13 ) 15 GLB fees ceded to LNBAR and attributed fees: Gross gain (loss) ( 50 ) ( 59 ) Associated amortization of DAC, VOBA, DSI and DFEL ( 8 ) ( 8 ) Total realized gain (loss) $ 211 $ ( 2 ) (1) Includes changes in the allowance for credit losses as well as direct write-downs to amortized cost as a result of negative credit events. (2) Includes market adjustments on equity securities still held of $ 10 million and $( 18 ) million for the three months ended March 31, 2021 and 2020, respectively. (3) Represents changes in the fair values of certain derivative investments (not including those associated with our variable and indexed annuity and IUL contracts net derivative results), reinsurance related embedded derivatives, mortgage loans on real estate accounted for under the fair value option and trading securities. See Note 7 for information regarding Modco. (4) Includes gains and losses from fair value changes on mortgage loans on real estate accounted for under the fair value option of $ 1 million and $ 7 million for the three months ended March 31, 2021 and 2020, respectively. (5) 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. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value of Financial Instruments [Abstract] | |
Fair Value of Financial Instruments | 13. Fair Value of Financial Instruments The carrying values and estimated fair values of our financial instruments (in millions) were as follows: As of March 31, 2021 As of December 31, 2020 Carrying Fair Carrying Fair Value Value Value Value Assets Fixed maturity AFS securities $ 115,695 $ 115,695 $ 121,111 $ 121,111 Trading securities 4,308 4,308 4,442 4,442 Equity securities 121 121 127 127 Mortgage loans on real estate 17,159 17,978 16,681 18,129 Derivative investments (1) 3,453 3,453 3,109 3,109 Other investments 3,014 3,014 3,015 3,015 Cash and invested cash 1,086 1,086 1,462 1,462 Other assets: GLB direct embedded derivatives 1,831 1,831 450 450 GLB ceded embedded derivatives 42 42 82 82 Indexed annuity ceded embedded derivatives 527 527 550 550 LPR ceded derivative 268 268 - - Separate account assets 171,339 171,339 167,965 167,965 Liabilities Future contract benefits – indexed annuity and IUL contracts embedded derivatives ( 4,170 ) ( 4,170 ) ( 3,594 ) ( 3,594 ) Other contract holder funds: Remaining guaranteed interest and similar contracts ( 1,860 ) ( 1,860 ) ( 1,854 ) ( 1,854 ) Account values of certain investment contracts ( 40,650 ) ( 41,689 ) ( 40,917 ) ( 49,709 ) Short-term debt ( 568 ) ( 568 ) ( 497 ) ( 497 ) Long-term debt ( 2,332 ) ( 2,635 ) ( 2,412 ) ( 2,834 ) Reinsurance related embedded derivatives ( 516 ) ( 516 ) ( 540 ) ( 540 ) Other liabilities: Derivative liabilities (1) ( 228 ) ( 228 ) ( 353 ) ( 353 ) GLB ceded embedded derivatives ( 1,869 ) ( 1,869 ) ( 531 ) ( 531 ) (1) We have master netting agreements with each of our derivative counterparties, which allow for the netting of our derivative asset and liability positions by counterparty. Valuation Methodologies and Associated Inputs for Financial Instruments Not Carried at Fair Value The following discussion outlines the methodologies and assumptions used to determine the fair value of our financial instruments not carried at fair value on our Consolidated Balance Sheets. Considerable judgment is required to develop these assumptions used to measure fair value. Accordingly, the estimates shown are not necessarily indicative of the amounts that would be realized in a one-time, current market exchange of all of our financial instruments. Mortgage Loans on Real Estate The fair value of mortgage loans on real estate, excluding mortgage loans accounted for using the fair value option, is established using a discounted cash flow method based on credit rating, maturity and future income. The ratings for mortgages in good standing are based on property type, location, market conditions, occupancy, debt-service coverage, loan-to-value, quality of tenancy, borrower and payment record. The fair value for impaired mortgage loans is based on the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s market price or the fair value of the collateral if the loan is collateral dependent. The inputs used to measure the fair value of our mortgage loans on real estate are classified as Level 2 within the fair value hierarchy. Other Investments The carrying value of our assets classified as other investments approximates fair value. Other investments includes primarily LPs and other privately held investments that are accounted for using the equity method of accounting and the carrying value is based on our proportional share of the net assets of the LPs. Other investments also includes Federal Home Loan Bank (“FHLB”) stock carried at cost and periodically evaluated for impairment based on ultimate recovery of par value. The inputs used to measure the fair value of our LPs, other privately held investments and FHLB stock are classified as Level 3 within the fair value hierarchy. The remaining assets in other investments include cash collateral receivables and securities that are not LPs or other privately held investments. The inputs used to measure the fair value of these assets are classified as Level 2 within the fair value hierarchy. Separate Account Assets Separate account assets are primarily carried at fair value. A portion of our separate account assets includes LPs, which are accounted for using the equity method of accounting. The carrying value is based on our proportional share of the net assets of the LPs and approximates fair value. The inputs used to measure the fair value of the separate account asset LPs are classified as Level 3 within the fair value hierarchy. Other Contract Holder Funds Other contract holder funds include remaining guaranteed interest and similar contracts and account values of certain investment contracts. The fair value for the remaining guaranteed interest and similar contracts is estimated using discounted cash flow calculations as of the balance sheet date. These calculations are based on interest rates currently offered on similar contracts with maturities that are consistent with those remaining for the contracts being valued. As of March 31, 2021, and December 31, 2020, the remaining guaranteed interest and similar contracts carrying value approximated fair value. The fair value of the account values of certain investment contracts is based on their approximate surrender value as of the balance sheet date. The inputs used to measure the fair value of our other contract holder funds are classified as Level 3 within the fair value hierarchy. Short-Term and Long-Term Debt The fair value of short-term and long-term debt is based on quoted market prices. The inputs used to measure the fair value of our short-term and long-term debt are classified as Level 2 within the fair value hierarchy. Fair Value Option Mortgage loans on real estate, net of allowance for credit losses, as reported on our Consolidated Balance Sheets, includes mortgage loans on real estate for which the fair value option was elected. The fair value option allows us to elect fair value as an alternative measurement for mortgage loans not otherwise reported at fair value. We have made these elections for certain mortgage loans associated with Modco agreements to help mitigate the inconsistency in earnings that would otherwise result from the use of embedded derivatives included with these loans. Changes in fair value are reflected in realized gain (loss) on our Consolidated Statement of Comprehensive Income (Loss). Changes in fair value due to instrument-specific credit risk are estimated using changes in credit spreads and quality ratings for the period reported. Mortgage loans on real estate for which the fair value option was elected are valued using third-party pricing services. We have procedures in place to review the valuations each quarter to ensure they are reasonable, including utilizing a separate third party to reperform the valuation for a selection of mortgage loans on an annual basis. Due to lack of observable inputs as a result of a change to a third-party pricing source, mortgage loans electing the fair value option were categorized as Level 3 as of March 31, 2021, and December 31, 2020. The fair value and aggregate contractual principal for mortgage loans on real estate where the fair value option was elected (in millions) were as follows: As of As of March 31, December 31, 2021 2020 Fair value $ 874 $ 832 Aggregate contractual principal 882 839 As of March 31, 2021, and December 31, 2020, no loans for which the fair value option was elected were in non-accrual status, and none were more than 90 days past due and still accruing interest. Financial Instruments Carried at Fair Value We did no t have any assets or liabilities measured at fair value on a nonrecurring basis as of March 31, 2021, or December 31, 2020. The following summarizes our financial instruments carried at fair value (in millions) on a recurring basis by the fair value hierarchy levels: As of March 31, 2021 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 $ - $ 87,732 $ 7,772 $ 95,504 U.S. government bonds 400 6 5 411 State and municipal bonds - 6,374 - 6,374 Foreign government bonds - 415 66 481 RMBS - 2,842 1 2,843 CMBS - 1,506 1 1,507 ABS - 7,302 688 7,990 Hybrid and redeemable preferred securities 53 448 84 585 Trading securities - 3,593 715 4,308 Equity securities 12 50 59 121 Mortgage loans on real estate - - 874 874 Derivative investments (1) - 1,061 4,243 5,304 Cash and invested cash - 1,086 - 1,086 Other assets: GLB direct embedded derivatives - - 1,831 1,831 GLB ceded embedded derivatives - - 42 42 Indexed annuity ceded embedded derivatives - - 527 527 LPR ceded derivative - - 268 268 Separate account assets 595 170,736 - 171,331 Total assets $ 1,060 $ 283,151 $ 17,176 $ 301,387 Liabilities Future contract benefits – indexed annuity and IUL contracts embedded derivatives $ - $ - $ ( 4,170 ) $ ( 4,170 ) Reinsurance related embedded derivatives - ( 516 ) - ( 516 ) Other liabilities: Derivative liabilities (1) - ( 497 ) ( 1,582 ) ( 2,079 ) GLB ceded embedded derivatives - - ( 1,869 ) ( 1,869 ) Total liabilities $ - $ ( 1,013 ) $ ( 7,621 ) $ ( 8,634 ) As of December 31, 2020 Quoted Prices in Active Markets for Significant Significant Identical Observable Unobservable Total Assets Inputs Inputs Fair (Level 1) (Level 2) (Level 3) Value Assets Investments: Fixed maturity AFS securities: Corporate bonds $ - $ 93,663 $ 7,761 $ 101,424 U.S. government bonds 438 6 5 449 State and municipal bonds - 6,662 - 6,662 Foreign government bonds - 391 74 465 RMBS - 2,836 2 2,838 CMBS - 1,494 1 1,495 ABS - 6,608 570 7,178 Hybrid and redeemable preferred securities 53 444 103 600 Trading securities 5 3,794 643 4,442 Equity securities 22 48 57 127 Mortgage loans on real estate - - 832 832 Derivative investments (1) - 1,733 3,575 5,308 Cash and invested cash - 1,462 - 1,462 Other assets: GLB direct embedded derivatives - - 450 450 GLB ceded embedded derivatives - - 82 82 Indexed annuity ceded embedded derivatives - - 550 550 Separate account assets 606 167,351 - 167,957 Total assets $ 1,124 $ 286,492 $ 14,705 $ 302,321 Liabilities Future contract benefits – indexed annuity and IUL contracts embedded derivatives $ - $ - $ ( 3,594 ) $ ( 3,594 ) Reinsurance related embedded derivatives - ( 540 ) - ( 540 ) Other liabilities: Derivative liabilities (1) - ( 519 ) ( 2,033 ) ( 2,552 ) GLB ceded embedded derivatives - - ( 531 ) ( 531 ) Total liabilities $ - $ ( 1,059 ) $ ( 6,158 ) $ ( 7,217 ) (1) Derivative investment assets and liabilities are presented within the fair value hierarchy on a gross basis by derivative type and not on a master netting basis by counterparty. The following summarizes changes to our financial instruments carried at fair value (in millions) and classified within Level 3 of the fair value hierarchy. This summary excludes any effect of amortization of DAC, VOBA, DSI and DFEL. The gains and losses below may include changes in fair value due in part to observable inputs that are a component of the valuation methodology. For the Three Months Ended March 31, 2021 Gains Issuances, Transfers Items (Losses) Sales, Into or Included in Maturities, Out Beginning in OCI Settlements, of Ending Fair Net and Calls, Level 3, Fair Value Income Other (1) Net Net (2) Value Investments: (3) Fixed maturity AFS securities: Corporate bonds $ 7,761 $ 1 $ ( 121 ) $ 158 $ ( 27 ) $ 7,772 U.S. government bonds 5 - - - - 5 Foreign government bonds 74 - ( 8 ) - - 66 RMBS 2 - - - ( 1 ) 1 CMBS 1 - - - - 1 ABS 570 - ( 7 ) 183 ( 58 ) 688 Hybrid and redeemable preferred securities 103 - 1 ( 20 ) - 84 Trading securities 643 ( 3 ) - 66 9 715 Equity securities 57 7 - ( 5 ) - 59 Mortgage loans on real estate 832 2 3 37 - 874 Derivative investments 1,542 1,251 - ( 132 ) - 2,661 Other assets: GLB direct embedded derivatives (4) 450 1,381 - - - 1,831 GLB ceded embedded derivatives (4) 82 ( 40 ) - - - 42 Indexed annuity ceded embedded derivatives (4) 550 32 - ( 55 ) - 527 LPR ceded derivative (5) - ( 50 ) - - 318 268 Future contract benefits – indexed annuity and IUL contracts embedded derivatives (4) ( 3,594 ) ( 626 ) - 50 - ( 4,170 ) Other liabilities – GLB ceded embedded derivatives (4) ( 531 ) ( 1,338 ) - - - ( 1,869 ) Total, net $ 8,547 $ 617 $ ( 132 ) $ 282 $ 241 $ 9,555 For the Three Months Ended March 31, 2020 Gains Issuances, Transfers Items (Losses) Sales, Into or Included in Maturities, Out Beginning in OCI Settlements, of Ending Fair Net and Calls, Level 3, Fair Value Income Other (1) Net Net (2) Value Investments: (3) Fixed maturity AFS securities: Corporate bonds $ 6,978 $ - $ ( 367 ) $ 102 $ 42 $ 6,755 U.S. government bonds 5 - - - - 5 Foreign government bonds 90 - ( 3 ) - - 87 RMBS 11 - - - ( 10 ) 1 CMBS 1 - - - - 1 ABS 268 - ( 4 ) 21 ( 89 ) 196 Hybrid and redeemable preferred securities 78 - ( 6 ) - - 72 Trading securities 666 ( 32 ) - ( 6 ) 23 651 Equity securities 30 - - - - 30 Derivative investments 868 997 279 ( 117 ) - 2,027 Other assets: (4) GLB direct embedded derivatives 450 ( 450 ) - - - - GLB ceded embedded derivatives 60 4,529 - - - 4,589 Indexed annuity ceded embedded derivatives 927 ( 115 ) - ( 13 ) - 799 Future contract benefits – indexed annuity and IUL contracts embedded derivatives (4) ( 2,585 ) 1,143 - 62 - ( 1,380 ) Other liabilities: (4) GLB direct embedded derivatives - ( 4,596 ) - - - ( 4,596 ) GLB ceded embedded derivatives ( 510 ) 510 - - - - Total, net $ 7,337 $ 1,986 $ ( 101 ) $ 49 $ ( 34 ) $ 9,237 (1) The changes in fair value of the interest rate swaps are offset by an adjustment to derivative investments (see Note 5). (2) Transfers into or out of Level 3 for fixed maturity AFS and trading securities are reported at amortized cost as of the beginning-of-year. For fixed maturity AFS and trading securities, the difference between beginning-of-year amortized cost and beginning-of-year fair value was included in OCI and earnings, respectively, in the prior period. (3) Amortization and accretion of premiums and discounts are included in net investment income on our Consolidated Statements of Comprehensive Income (Loss). Gains (losses) from sales, maturities, settlements and calls and credit loss expense are included in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). (4) Gains (losses) from the changes in fair value are included in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). (5) Gains (losses) from the changes in fair value are included in benefits on our Consolidated Statements of Comprehensive Income (Loss). The following provides the components of the items included in issuances, sales, maturities, settlements and calls, net, excluding any effect of amortization of DAC, VOBA, DSI and DFEL and changes in future contract benefits, (in millions) as reported above: For the Three Months Ended March 31, 2021 Issuances Sales Maturities Settlements Calls Total Investments: Fixed maturity AFS securities: Corporate bonds $ 304 $ ( 28 ) $ ( 15 ) $ ( 86 ) $ ( 17 ) $ 158 ABS 200 - - ( 17 ) - 183 Hybrid and redeemable preferred securities - ( 20 ) - - - ( 20 ) Trading securities 88 ( 3 ) - ( 19 ) - 66 Equity securities 3 ( 8 ) - - - ( 5 ) Mortgage loans on real estate 72 ( 35 ) - - - 37 Derivative investments 174 ( 124 ) ( 182 ) - - ( 132 ) Other assets – indexed annuity ceded embedded derivatives 3 - - ( 58 ) - ( 55 ) Future contract benefits – indexed annuity and IUL contracts embedded derivatives ( 108 ) - - 158 - 50 Total, net $ 736 $ ( 218 ) $ ( 197 ) $ ( 22 ) $ ( 17 ) $ 282 For the Three Months Ended March 31, 2020 Issuances Sales Maturities Settlements Calls Total Investments: Fixed maturity AFS securities: Corporate bonds $ 292 $ ( 92 ) $ 2 $ ( 51 ) $ ( 49 ) $ 102 ABS 36 - - ( 15 ) - 21 Trading securities 37 ( 25 ) - ( 18 ) - ( 6 ) Derivative investments 118 ( 123 ) ( 112 ) - - ( 117 ) Other assets – indexed annuity ceded embedded derivatives 9 - - ( 22 ) - ( 13 ) Future contract benefits – indexed annuity and IUL contracts embedded derivatives 11 - - 51 - 62 Total, net $ 503 $ ( 240 ) $ ( 110 ) $ ( 55 ) $ ( 49 ) $ 49 The following summarizes changes in unrealized gains (losses) included in net income, excluding any effect of amortization of DAC, VOBA, DSI and DFEL and changes in future contract benefits, related to financial instruments carried at fair value classified within Level 3 that we still held (in millions): For the Three Months Ended March 31, 2021 2020 Trading securities (1) $ ( 2 ) $ - Equity securities (1) 6 - Mortgage loans on real estate (1) 4 - Derivative investments (1) 1,053 895 Embedded derivatives – Indexed annuity and IUL contracts (1) 43 ( 61 ) Other assets: GLB direct and ceded (1) 1,545 ( 4,867 ) LPR ceded derivative (2) ( 50 ) - Other liabilities – GLB direct and ceded (1) ( 1,542 ) 4,867 Total, net $ 1,057 $ 834 (1) Included in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). (2) Included in benefits on our Consolidated Statements of Comprehensive Income (Loss). The following summarizes changes in unrealized gains (losses) included in OCI, net of tax, excluding any effect of amortization of DAC, VOBA, DSI and DFEL and changes in future contract benefits, related to financial instruments carried at fair value classified within Level 3 that we still held (in millions): For the Three Months Ended March 31, 2021 2020 Fixed maturity AFS securities: Corporate bonds $ ( 122 ) $ ( 311 ) Foreign government bonds ( 8 ) ( 2 ) ABS ( 8 ) ( 3 ) Hybrid and redeemable preferred securities 2 ( 5 ) Mortgage loans on real estate 3 - Total, net $ ( 133 ) $ ( 321 ) The following provides the components of the transfers into and out of Level 3 (in millions) as reported above: For the Three For the Three Months Ended Months Ended March 31, 2021 March 31, 2020 Transfers Transfers Transfers Transfers Into Out of Into Out of Level 3 Level 3 Total Level 3 Level 3 Total Investments: Fixed maturity AFS securities: Corporate bonds $ 11 $ ( 38 ) $ ( 27 ) $ 119 $ ( 77 ) $ 42 RMBS - ( 1 ) ( 1 ) - ( 10 ) ( 10 ) ABS - ( 58 ) ( 58 ) 5 ( 94 ) ( 89 ) Trading securities 12 ( 3 ) 9 23 - 23 Other assets – LPR ceded derivative 318 - 318 - - - Total, net $ 341 $ ( 100 ) $ 241 $ 147 $ ( 181 ) $ ( 34 ) Transfers into and out of Level 3 are generally the result of observable market information on a security no longer being available or becoming available to our pricing vendors. For the three months ended March 31, 2021 and 2020, transfers in and out of Level 3 were attributable primarily to the securities’ observable market information no longer being available or becoming available. The following summarizes the fair value (in millions), valuation techniques and significant unobservable inputs of the Level 3 fair value measurements as of March 31, 2021: Weighted Average Fair Valuation Significant Assumption or Input Value Technique Unobservable Inputs Input Ranges Range (1) Assets Investments: Fixed maturity AFS and trading securities: Corporate bonds $ 3,367 Discounted cash flow Liquidity/duration adjustment (2) 0.3 % - 7.9 % 1.5 % Foreign government bonds 29 Discounted cash flow Liquidity/duration adjustment (2) 5.7 % - 5.7 % 5.7 % ABS 20 Discounted cash flow Liquidity/duration adjustment (2) 3.0 % - 3.0 % 3.0 % Equity securities 20 Discounted cash flow Liquidity/duration adjustment (2) 4.5 % - 6.2 % 5.8 % Other assets: GLB direct and ceded embedded derivatives 1,873 Discounted cash flow Long-term lapse rate (3) 1 % - 30 % (10) Utilization of guaranteed withdrawals (4) 85 % - 100 % 94 % Claims utilization factor (5) 60 % - 100 % (10) Premiums utilization factor (5) 80 % - 115 % (10) NPR (6) 0.07 % - 1.43 % 0.95 % Mortality rate (7) (9) (10) Volatility (8) 1 % - 28 % 14.71 % Indexed annuity ceded embedded derivatives 527 Discounted cash flow Lapse rate (3) 0 % - 9 % (10) Mortality rate (7) (9) (10) LPR ceded derivative 268 Discounted cash flow Long-term lapse rate (3) 0 % - 1.65 % (10) NPR (6) 0.07 % - 1.43 % 0.93 % Mortality rate (7) (9) (10) Liabilities Future contract benefits – indexed annuity contract embedded derivatives $ ( 4,107 ) Discounted cash flow Lapse rate (3) 0 % - 9 % (10) Mortality rate (7) (9) (10) Other liabilities – GLB ceded embedded derivatives ( 1,869 ) Discounted cash flow Long-term lapse rate (3) 1 % - 30 % (10) Utilization of guaranteed withdrawals (4) 85 % - 100 % 94 % Claims utilization factor (5) 60 % - 100 % (10) Premiums utilization factor (5) 80 % - 115 % (10) NPR (6) 0.07 % - 1.43 % 0.95 % Mortality rate (7) (9) (10) Volatility (8) 1 % - 28 % 14.71 % (1) Unobservable inputs were weighted by the relative fair value of the instruments, unless otherwise noted. (2) The liquidity/duration adjustment input represents an estimated market participant composite of adjustments attributable to liquidity premiums, expected durations, structures and credit quality that would be applied to the market observable information of an investment. (3) The lapse rate input represents the estimated probability of a contract surrendering during a year, and thereby forgoing any future benefits. The range for indexed annuity contracts represents the lapse rates during the surrender charge period. (4) The utilization of guaranteed withdrawals input represents the estimated percentage of contract holders that utilize the guaranteed withdrawal feature. (5) The utilization factors are applied to the present value of claims or premiums, as appropriate, in the GLB reserve calculation to estimate the impact of inefficient withdrawal behavior, including taking less than or more than the maximum guaranteed withdrawal. (6) The NPR input represents the estimated additional credit spread that market participants would apply to the market observable discount rate when pricing a contract. The NPR input for direct and ceded embedded derivatives was weighted by the absolute value of the sensitivity of the reserve to the NPR assumption. The NPR input for LPR ceded derivative was weighted using a simple average. (7) The mortality rate input represents the estimated probability of when an individual belonging to a particular group, categorized according to age or some other factor such as gender, will die. (8) The volatility input represents overall volatilities assumed for the underlying variable annuity funds, which include a mixture of equity and fixed-income assets. Fair value of the variable annuity GLB embedded derivatives would increase if higher volatilities were used for valuation. Volatility assumptions vary by fund due to the benchmarking of different indices. The volatility input was weighted by the relative account value assigned to each index. (9) The mortality rate is based on a combination of company and industry experience, adjusted for improvement factors. (10) A weighted average input range is not a meaningful measurement for lapse rate, utilization factors or mortality rate. From the table above, we have excluded Level 3 fair value measurements obtained from independent, third-party pricing sources. We do not develop the significant inputs used to measure the fair value of these assets and liabilities, and the information regarding the significant inputs is not readily available to us. Independent broker-quoted fair values are non-binding quotes developed by market makers or broker-dealers obtained from third-party sources recognized as market participants. The fair value of a broker-quoted asset or liability is based solely on the receipt of an updated quote from a single market maker or a broker-dealer recognized as a market participant as we do not adjust broker quotes when used as the fair value measurement for an asset or liability. Significant increases or decreases in any of the quotes received from a third-party broker-dealer may result in a significantly higher or lower fair value measurement. Changes in any of the significant inputs presented in the table above would have resulted in a significant change in the fair value measurement of the asset or liability as follows: Investments – An increase in the liquidity/duration adjustment input would have resulted in a decrease in the fair value measurement. Indexed annuity contract embedded derivatives – For direct embedded derivatives, an increase in the lapse rate or mortality rate inputs would have resulted in a decrease in the fair value measurement. LPR ceded derivative – Assuming our LPR ceded derivative is in an asset position: an increase in our lapse rate, NPR, or mortality rate inputs would have resulted in an increase in the fair value measurement. GLB embedded derivatives – Assuming our GLB direct embedded derivatives are in a liability position: an increase in our lapse rate, NPR or mortality rate inputs would have resulted in a decrease in the fair value measurement; and an increase in the utilization of guaranteed withdrawal or volatility inputs would have resulted in an increase in the fair value measurement. For each category discussed above, the unobservable inputs are not inter-related; therefore, a directional change in one input would not have affected the other inputs. As part of our ongoing valuation process, we assess the reasonableness of our valuation techniques or models and make adjustments as necessary. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2021 | |
Segment Information [Abstract] | |
Segment Information | 14. Segment Information We provide products and services and report results through our Annuities, Retirement Plan Services, Life Insurance and Group Protection segments. We also have Other Operations, which includes the financial data for operations that are not directly related to the business segments. Our reporting segments reflect the manner by which our chief operating decision makers view and manage the business. A discussion of these segments and Other Operations is found in Note 22 to the consolidated financial statements in our 2020 Form 10-K. Segment operating revenues and income (loss) from operations are internal measures used by our management and Board of Directors to evaluate and assess the results of our segments. Income (loss) from operations is GAAP net income excluding the after-tax effects of the following items, as applicable: Realized gains and losses associated with the following (“excluded realized gain (loss)”): Sales or disposals and impairments of financial assets; Changes in the fair value of equity securities; Changes in the fair value of derivatives, embedded derivatives within certain reinsurance arrangements and trading securities (“gain (loss) on the mark-to-market on certain instruments”); GLB rider fees ceded to LNBAR; The net valuation premium of the GLB attributed rider fees; and Changes in the fair value of the embedded derivative liabilities related to index options we may purchase or sell in the future to hedge contract holder index allocations applicable to future reset periods for our indexed annuity products accounted for at fair value (“indexed annuity forward-starting option”); Changes in reserves resulting from benefit ratio unlocking on our GLB riders (“benefit ratio unlocking”); Income (loss) from reserve changes, net of related amortization, on business sold through reinsurance; Gains (losses) on early extinguishment of debt; Losses from the impairment of intangible assets; Income (loss) from discontinued operations; Acquisition and integration costs related to mergers and acquisitions; and Income (loss) from the initial adoption of new accounting standards, regulations, and policy changes including the net impact from the Tax Cuts and Jobs Act. Operating revenues represent GAAP revenues excluding the pre-tax effects of the following items, as applicable : Excluded realized gain (loss); Revenue adjustments from the initial adoption of new accounting standards; Amortization of DFEL arising from changes in GLB benefit ratio unlocking; and Amortization of deferred gains arising from reserve changes on business sold through reinsurance. The tables below reconcile our segment measures of performance to the GAAP measures presented in our Consolidated Statements of Comprehensive Income (Loss) (in millions): For the Three Months Ended March 31, 2021 2020 Revenues Operating revenues: Annuities $ 1,097 $ 1,021 Retirement Plan Services 323 293 Life Insurance 1,819 1,723 Group Protection 1,253 1,224 Other Operations 35 35 Excluded realized gain (loss), pre-tax 162 ( 55 ) Total revenues $ 4,689 $ 4,241 For the Three Months Ended March 31, 2021 2020 Net Income (Loss) Income (loss) from operations: Annuities $ 297 $ 322 Retirement Plan Services 54 37 Life Insurance 42 190 Group Protection ( 26 ) 40 Other Operations ( 41 ) ( 33 ) Excluded realized gain (loss), after-tax 127 ( 44 ) Benefit ratio unlocking, after-tax 11 ( 5 ) Acquisition and integration costs related to mergers and acquisitions, after-tax - ( 5 ) Net income (loss) $ 464 $ 502 |
Nature of Operations and Basi_2
Nature of Operations and Basis of Presentation (Policy) | 3 Months Ended |
Mar. 31, 2021 | |
Nature of Operations and Basis of Presentation [Abstract] | |
Nature Of Operations | Nature of Operations The Lincoln National Life Insurance Company (“LNL” or the “Company,” which also may be referred to as “we,” “our” or “us”), a wholly-owned subsidiary of Lincoln National Corporation (“LNC” or the “Parent Company”), is domiciled in the state of Indiana. We own 100 % of the outstanding common stock of two insurance company subsidiaries, Lincoln Life & Annuity Company of New York (“LLANY”) and Lincoln Life Assurance Company of Boston. 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. Through our business segments, we sell a wide range of wealth protection, accumulation, retirement income and group protection products and solutions. These products primarily include fixed and indexed annuities, variable annuities, universal life insurance (“UL”), variable universal life insurance (“VUL”), linked-benefit UL and VUL, indexed universal life insurance (“IUL”), term life insurance, employer-sponsored retirement plans and services, and group life, disability and dental. LNL is licensed and sells its products throughout the U.S. and several U.S. territories. See Note 14 for additional information. |
Basis Of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements are prepared in accordance with United States of America generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions for the Securities and Exchange Commission (“SEC”) Quarterly Report on Form 10-Q, including Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. The information contained in the Notes to Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 (‘‘2020 Form 10-K’’), should be read in connection with the reading of these interim unaudited consolidated financial statements. Certain GAAP policies, which significantly affect the determination of financial condition, results of operations and cash flows, are summarized in our 2020 Form 10-K. In the opinion of management, these statements include all normal recurring adjustments necessary for a fair presentation of the Company’s results. Operating results for the three months ended March 31, 2021, are not necessarily indicative of the results that may be expected for the full year ending December 31, 2021 , especially when considering the risks and uncertainties associated with the COVID-19 pandemic and the future impacts of the pandemic on our business, results of operations and financial condition . All material inter-company accounts and transactions have been eliminated in consolidation |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Reconciliation Of Available-For-Sale Securities From Cost Basis To Fair Value | As of March 31, 2021 Allowance Amortized Gross Unrealized for Credit Fair Cost Gains Losses Losses Value Fixed maturity AFS securities: Corporate bonds $ 86,191 $ 9,974 $ 648 $ 13 $ 95,504 U.S. government bonds 365 49 3 - 411 State and municipal bonds 5,252 1,154 32 - 6,374 Foreign government bonds 424 63 6 - 481 RMBS 2,607 240 3 1 2,843 CMBS 1,455 67 15 - 1,507 ABS 7,875 142 27 - 7,990 Hybrid and redeemable preferred securities 515 91 21 - 585 Total fixed maturity AFS securities $ 104,684 $ 11,780 $ 755 $ 14 $ 115,695 As of December 31, 2020 Allowance Amortized Gross Unrealized for Credit Fair Cost Gains Losses Losses Value Fixed maturity AFS securities: Corporate bonds $ 85,625 $ 15,947 $ 136 $ 12 $ 101,424 U.S. government bonds 369 81 1 - 449 State and municipal bonds 5,145 1,517 - - 6,662 Foreign government bonds 380 86 1 - 465 RMBS 2,551 289 1 1 2,838 CMBS 1,380 115 - - 1,495 ABS 7,035 158 15 - 7,178 Hybrid and redeemable preferred securities 536 94 30 - 600 Total fixed maturity AFS securities $ 103,021 $ 18,287 $ 184 $ 13 $ 121,111 |
Available-For-Sale Securities By Contractual Maturities | Amortized Fair Cost Value Due in one year or less $ 3,210 $ 3,231 Due after one year through five years 15,083 15,965 Due after five years through ten years 19,614 21,218 Due after ten years 54,840 62,941 Subtotal 92,747 103,355 Structured securities (RMBS, CMBS, ABS) 11,937 12,340 Total fixed maturity AFS securities $ 104,684 $ 115,695 |
Fair Value And Gross Unrealized Losses In A Continuous Unrealized Loss Position | As of March 31, 2021 Less Than or Equal Greater Than to Twelve Months Twelve Months Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses (1) Fixed maturity AFS securities: Corporate bonds $ 11,558 $ 595 $ 686 $ 53 $ 12,244 $ 648 U.S. government bonds 25 3 - - 25 3 State and municipal bonds 719 32 - - 719 32 Foreign government bonds 99 6 - - 99 6 RMBS 198 3 6 - 204 3 CMBS 362 15 - - 362 15 ABS 2,400 24 164 3 2,564 27 Hybrid and redeemable preferred securities 124 8 91 13 215 21 Total fixed maturity AFS securities $ 15,485 $ 686 $ 947 $ 69 $ 16,432 $ 755 Total number of fixed maturity AFS securities in an unrealized loss position 1,723 As of December 31, 2020 Less Than or Equal Greater Than to Twelve Months Twelve Months Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses (1) Fixed maturity AFS securities: Corporate bonds $ 2,785 $ 85 $ 588 $ 51 $ 3,373 $ 136 U.S. government bonds 28 1 - - 28 1 Foreign government bonds 57 1 - - 57 1 RMBS 43 1 6 - 49 1 ABS 1,527 9 355 6 1,882 15 Hybrid and redeemable preferred securities 112 13 96 17 208 30 Total fixed maturity AFS securities $ 4,552 $ 110 $ 1,045 $ 74 $ 5,597 $ 184 Total number of fixed maturity AFS securities in an unrealized loss position 782 (1) As of March 31, 2021, and December 31, 2020, we recognized $ 2 million and $ 1 million, respectively, of gross unrealized losses in other comprehensive income (loss) (“OCI”) for fixed maturity AFS securities for which an allowance for credit losses has been recorded. |
Schedule Of Available-For-Sale Securities Whose Value Is Below Amortized Cost | As of March 31, 2021 Gross Number Fair Unrealized of Value Losses Securities (1) Less than six months $ 50 $ 16 10 Six months or greater, but less than nine months 52 23 4 Nine months or greater, but less than twelve months 1 1 3 Twelve months or greater 27 8 28 Total $ 130 $ 48 45 As of December 31, 2020 Gross Number Fair Unrealized of Value Losses Securities (1) Less than six months $ 63 $ 23 14 Six months or greater, but less than nine months 2 1 4 Nine months or greater, but less than twelve months 22 6 13 Twelve months or greater 30 11 20 Total $ 117 $ 41 51 (1) We may reflect a security in more than one aging category based on various purchase dates. |
Changes In Allowance For Credit Losses Of AFS | For the Three Months Ended March 31, 2021 Corporate Bonds RMBS ABS Total Balance as of beginning-of-year $ 12 $ 1 $ - $ 13 Additions from purchases of PCD debt securities (1) - - - - Additions (reductions) for securities for which credit losses were previously recognized 1 - - 1 Balance as of end-of-period (2) $ 13 $ 1 $ - $ 14 For the Three Months Ended March 31, 2020 Corporate Bonds RMBS ABS Total Balance as of beginning-of-year $ - $ - $ - $ - Additions for securities for which credit losses were not previously recognized 18 - - 18 Additions from purchases of PCD debt securities (1) - - - - Balance as of end-of-period (2) $ 18 $ - $ - $ 18 (1) Represents purchased credit-deteriorated (“PCD”) fixed maturity AFS securities. (2) Accrued interest receivable on fixed maturity AFS securities totaled $ 1.0 billion as of March 31, 2021 and 2020, and was excluded from the estimate of credit losses. |
Composition Of Current And Past Due Mortgage Loans On Real Estate | As of March 31, 2021 As of December 31, 2020 Commercial Residential Total Commercial Residential Total Current $ 16,577 $ 666 $ 17,243 $ 16,162 $ 610 $ 16,772 30 to 59 days past due 6 26 32 4 28 32 60 to 89 days past due - 8 8 - 8 8 90 or more days past due - 55 55 - 69 69 Allowance for credit losses ( 171 ) ( 12 ) ( 183 ) ( 186 ) ( 17 ) ( 203 ) Unamortized premium (discount) ( 13 ) 23 10 ( 14 ) 22 8 Mark-to-market gains (losses) (1) ( 6 ) - ( 6 ) ( 5 ) - ( 5 ) Total carrying value $ 16,393 $ 766 $ 17,159 $ 15,961 $ 720 $ 16,681 (1) Represents the mark-to-market on certain mortgage loans on real estate for which we have elected the fair value option. See Note 13 for additional information. |
Schedule Of Average Carrying Value Of Impaired Mortgage Loans On Real Estate | For the Three Months Ended March 31, 2021 2020 Average carrying value for impaired mortgage loans on real estate $ 36 $ 3 Interest income recognized on impaired mortgage loans on real estate - - Interest income collected on impaired mortgage loans on real estate - - |
Amortized Cost Of Mortgage Loans On Real Estate On Nonaccrual Status | As of March 31, 2021 As of December 31, 2020 Nonaccrual Nonaccrual with no with no Allowance Allowance for Credit for Credit Losses Nonaccrual Losses Nonaccrual Commercial mortgage loans on real estate $ - $ - $ - $ - Residential mortgage loans on real estate - 57 - 71 Total $ - $ 57 $ - $ 71 |
Changes In Allowance For Credit Losses On Mortgage Loans On Real Estate | For the Three Months Ended March 31, 2021 Commercial Residential Total Balance as of beginning-of-year $ 186 $ 17 $ 203 Additions from provision for credit loss expense (1) 4 2 6 Additions from purchases of PCD mortgage loans on real estate - - - Additions (reductions) for mortgage loans on real estate for which credit losses were previously recognized (1) ( 19 ) ( 7 ) ( 26 ) Balance as of end-of-period (2) $ 171 $ 12 $ 183 For the Three Months Ended March 31, 2020 Commercial Residential Total Balance as of beginning-of-year $ - $ 2 $ 2 Impact of new accounting standard 61 26 87 Additions from provision for credit loss expense (3) 64 7 71 Additions from purchases of PCD mortgage loans on real estate - - - Balance as of end-of-period (2) $ 125 $ 35 $ 160 (1) Due to improving economic projections, the provision for credit loss expense decreased by $ 20 million for the three months ended March 31, 2021. For the three months ended March 31, 2021 , we recognized $ 4 million of credit loss benefit related to unfunded commitments for mortgage loans on real estate. (2) Accrued interest receivable on mortgage loans on real estate totaled $ 50 million as of March 31, 2021 and 2020, and was excluded from the estimate of credit losses. (3) Due to changes in economic projections driven by the impact of the COVID-19 pandemic, the provision for credit loss expense increased by $ 71 million for the three months ended March 31, 2020. For the three months ended March 31, 2020, we recognized $ 1 million of credit loss benefit related to unfunded commitments for mortgage loans on real estate. |
Credit Loss Expense Incurred | For the Three Months Ended March 31, 2021 2020 Credit Loss Expense Fixed maturity AFS securities: Corporate bonds $ ( 2 ) $ ( 18 ) RMBS - - ABS - - Gross credit loss expense ( 2 ) ( 18 ) Associated amortization of DAC, VOBA, DSI and DFEL (1) - - Net credit loss expense $ ( 2 ) $ ( 18 ) (1) Deferred acquisition costs (“DAC”), value of business acquired (“VOBA”), deferred sales inducements (“DSI”) and deferred front-end loads (“DFEL”) . |
Payables For Collateral On Investments | As of March 31, 2021 As of December 31, 2020 Carrying Fair Carrying Fair Value Value Value Value Collateral payable for derivative investments (1) $ 3,218 $ 3,218 $ 2,970 $ 2,970 Securities pledged under securities lending agreements (2) 145 140 115 112 Investments pledged for Federal Home Loan Bank of Indianapolis (“FHLBI”) (3) 4,230 6,819 3,130 5,049 Total payables for collateral on investments $ 7,593 $ 10,177 $ 6,215 $ 8,131 (1) We obtain collateral based upon contractual provisions with our counterparties. These agreements take into consideration the counterparties’ credit rating as compared to ours, the fair value of the derivative investments and specified thresholds that if exceeded result in the receipt of cash that is typically invested in cash and invested cash. See Note 5 for additional information. (2) Our pledged securities under securities lending agreements are included in fixed maturity AFS securities on our Consolidated Balance Sheets. We generally obtain collateral in an amount equal to 102 % and 105 % of the fair value of the domestic and foreign securities, respectively. We value collateral daily and obtain additional collateral when deemed appropriate. The cash received in our securities lending program is typically invested in cash and invested cash or fixed maturity AFS securities. (3) Our pledged investments for FHLBI are included in fixed maturity AFS securities and mortgage loans on real estate on our Consolidated Balance Sheets. The collateral requirements are generally 105 % to 115 % of the fair value for fixed maturity AFS securities and 155 % to 175 % of the fair value for mortgage loans on real estate. The cash received in these transactions is primarily invested in cash and invested cash or fixed maturity AFS securities. |
Schedule Of Increase (Decrease) In Payables For Collateral On Investments | For the Three Months Ended March 31, 2021 2020 Collateral payable for derivative investments $ 248 $ 2,561 Securities pledged under securities lending agreements 30 47 Investments pledged for FHLBI 1,100 750 Total increase (decrease) in payables for collateral on investments $ 1,378 $ 3,358 |
Schedule Of Securities Pledged By Contractual Maturity | As of March 31, 2021 Overnight and Continuous Up to 30 Days 30 - 90 Days Greater Than 90 Days Total Securities Lending Corporate bonds $ 145 $ - $ - $ - $ 145 As of December 31, 2020 Overnight and Continuous Up to 30 Days 30 - 90 Days Greater Than 90 Days Total Securities Lending Corporate bonds $ 114 $ - $ - $ - $ 114 Foreign government bonds 1 - - - 1 Total gross secured borrowings $ 115 $ - $ - $ - $ 115 |
Commercial [Member] | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Credit Quality Indicators For Mortgage Loans | We use loan-to-value and debt-service coverage ratios as credit quality indicators for our commercial mortgage loans on real estate. The amortized cost of commercial mortgage loans on real estate (dollars in millions) by year of origination and credit quality indicator was as follows: As of March 31, 2021 Debt- Debt- Debt- Service Service Service Less Coverage 65% Coverage Greater Coverage than 65% Ratio to 74% Ratio than 75% Ratio Total Origination Year 2021 $ 1,362 3.01 $ 109 1.47 $ 40 2.21 $ 1,511 2020 3,007 2.20 318 1.96 25 1.79 3,350 2019 2,335 2.16 214 1.54 15 0.76 2,564 2018 1,746 2.34 153 1.74 27 0.67 1,926 2017 6,241 2.39 263 1.75 30 1.40 6,534 2016 and prior 660 3.00 25 1.95 - - 685 Total $ 15,351 $ 1,082 $ 137 $ 16,570 As of December 31, 2020 Debt- Debt- Debt- Service Service Service Less Coverage 65% Coverage Greater Coverage than 65% Ratio to 74% Ratio than 75% Ratio Total Origination Year 2020 $ 1,495 2.85 $ 32 1.52 $ - - $ 1,527 2019 3,098 2.24 258 1.78 2 1.74 3,358 2018 2,379 2.16 182 1.49 15 0.71 2,576 2017 1,779 2.34 169 1.73 - - 1,948 2016 1,711 2.37 174 1.56 22 1.58 1,907 2015 and prior 4,695 2.38 133 1.95 8 1.02 4,836 Total $ 15,157 $ 948 $ 47 $ 16,152 |
Residential [Member] | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Credit Quality Indicators For Mortgage Loans | As of March 31, 2021 Performing Nonperforming Total Origination Year 2021 $ 71 $ 6 $ 77 2020 197 42 239 2019 295 9 304 2018 158 - 158 2017 - - - 2016 and prior - - - Total $ 721 $ 57 $ 778 As of December 31, 2020 Performing Nonperforming Total Origination Year 2020 $ 176 $ 8 $ 184 2019 315 51 366 2018 175 12 187 2017 - - - 2016 - - - 2015 and prior - - - Total $ 666 $ 71 $ 737 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Derivative Instruments [Abstract] | |
Outstanding Derivative Instruments With Off-Balance-Sheet Risks | As of March 31, 2021 As of December 31, 2020 Notional Fair Value Notional Fair Value Amounts Asset Liability Amounts Asset Liability Qualifying Hedges Cash flow hedges: Interest rate contracts (1) $ 1,899 $ 7 $ 133 $ 964 $ 87 $ 11 Foreign currency contracts (1) 3,249 119 147 3,089 147 151 Total cash flow hedges 5,148 126 280 4,053 234 162 Fair value hedges: Interest rate contracts (1) 528 - 187 530 - 271 Non-Qualifying Hedges Interest rate contracts (1) 73,433 1,225 308 135,434 1,587 159 Foreign currency contracts (1) 410 4 6 304 1 8 Equity market contracts (1) 77,997 3,949 1,298 74,300 3,486 1,952 Credit contracts (1) 85 - - 51 - - LPR ceded derivative (2) - 268 - - - - Embedded derivatives: GLB direct (3) - 1,831 - - 450 - GLB ceded (3) - 42 1,869 - 82 531 Reinsurance related (4) - - 516 - - 540 Indexed annuity and IUL contracts (3) (5) - 527 4,170 - 550 3,594 Total derivative instruments $ 157,601 $ 7,972 $ 8,634 $ 214,672 $ 6,390 $ 7,217 (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 assets and other liabilities on our Consolidated Balance Sheets. (4) Reported in reinsurance related embedded derivatives on our Consolidated Balance Sheets. (5) Reported in future contract benefits on our Consolidated Balance Sheets. |
Maturity Of The Notional Amounts Of Derivative Financial Instruments | Remaining Life as of March 31, 2021 Less Than 1 – 5 6 – 10 11 – 30 Over 30 1 Year Years Years Years Years Total Interest rate contracts (1) $ 2,251 $ 48,239 $ 14,295 $ 11,070 $ 5 $ 75,860 Foreign currency contracts (2) 354 400 1,249 1,559 97 3,659 Equity market contracts 44,952 18,172 6,274 11 8,588 77,997 Credit contracts - 20 65 - - 85 Total derivative instruments with notional amounts $ 47,557 $ 66,831 $ 21,883 $ 12,640 $ 8,690 $ 157,601 (1) As of March 31, 2021, the latest maturity date for which we were hedging our exposure to the variability in future cash flows for these instruments was November 22, 2023. (2) As of March 31, 2021, the latest maturity date for which we were hedging our exposure to the variability in future cash flows for these instruments was June 16, 2061. |
Cumulative Basis Adjustments For Fair Value Hedges | Cumulative Fair Value Hedging Adjustment Included in the Amortized Cost of the Amortized Cost of the Hedged Hedged Assets / (Liabilities) Assets / (Liabilities) As of As of As of As of March 31, December 31, March 31, December 31, 2021 2020 2021 2020 Line Item in the Consolidated Balance Sheets in which the Hedged Item is Included Fixed maturity AFS securities, at fair value $ 738 $ 824 $ 187 $ 271 |
Change In Unrealized Gain On Derivative Instruments In Accumulated OCI | For the Three Months Ended March 31, 2021 2020 Unrealized Gain (Loss) on Derivative Instruments Balance as of beginning-of-year $ 42 $ 181 Other comprehensive income (loss): Unrealized holding gains (losses) arising during the period: Cash flow hedges: Interest rate contracts ( 203 ) 241 Foreign currency contracts ( 63 ) 312 Change in foreign currency exchange rate adjustment 47 153 Change in DAC, VOBA, DSI and DFEL 14 ( 48 ) Income tax benefit (expense) 43 ( 140 ) Less: Reclassification adjustment for gains (losses) included in net income (loss): Cash flow hedges: Interest rate contracts (1) 1 - Foreign currency contracts (1) 10 11 Foreign currency contracts (2) ( 2 ) 1 Associated amortization of DAC, VOBA, DSI and DFEL ( 1 ) ( 1 ) Income tax benefit (expense) ( 2 ) ( 2 ) Balance as of end-of-period $ ( 126 ) $ 690 (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 Three Months Ended March 31, 2021 2020 Realized Net Realized Net Gain Investment Gain Investment (Loss) Income Benefits (Loss) Income Benefits Total Line Items in which the Effects of Fair Value or Cash Flow Hedges are Recorded $ 211 $ 1,447 $ 2,182 $ ( 2 ) $ 1,318 $ 1,822 Qualifying Hedges Gain or (loss) on fair value hedging relationships: Interest rate contracts: Hedged items - ( 84 ) - - 127 - Derivatives designated as hedging instruments - 84 - - ( 127 ) - Gain or (loss) on cash flow hedging relationships: Interest rate contracts: Amount of gain or (loss) reclassified from AOCI into income - 1 - - - - Foreign currency contracts: Amount of gain or (loss) reclassified from AOCI into income ( 2 ) 10 - 1 11 - Non-Qualifying Hedges Interest rate contracts ( 1,159 ) - - 2,150 - - Equity market contracts 1,242 - - 1,070 - - Credit contracts - - - ( 4 ) - - LPR ceded derivative - - 50 - - - Embedded derivatives: GLB 3 - - ( 7 ) - - Reinsurance related 342 - - 596 - - Indexed annuity and IUL contracts ( 594 ) - - 1,028 - - |
Open Credit Default Swap Liabilities | As of March 31, 2021 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 12/20/2025 (3) (4) BBB+ 1 $ - $ 20 Basket credit default swaps 6/20/2026 (3) (4) BBB+ 1 2 65 As of December 31, 2020 Credit Reason Nature Rating of Number Maximum for of Underlying of Fair Potential Credit Contract Type Maturity Entering Recourse Obligation (1) Instruments Value (2) Payout Basket credit default swaps 12/20/2025 (3) (4) BBB+ 1 $ 1 $ 51 (1) Represents average credit ratings based on the midpoint of the applicable ratings among Moody’s, S&P and Fitch Ratings, as scaled to the corresponding S&P ratings. (2) Broker quotes are used to determine the market value of our credit default swaps. (3) Credit default swaps were entered into in order to hedge the liability exposure on certain variable annuity products. (4) Sellers do not have the right to demand indemnification or compensation from third parties in case of a loss (payment) on the contract. |
Collateral Support Agreements | As of As of March 31, December 31, 2021 2020 Maximum potential payout $ 85 $ 51 Less: Counterparty thresholds - - Maximum collateral potentially required to post $ 85 $ 51 |
Schedule Of Collateral Amounts With Rights To Reclaim Or Obligation To Return Cash | As of March 31, 2021 As of December 31, 2020 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- $ 1,453 $ ( 11 ) $ 1,232 $ ( 7 ) A+ 1,316 ( 119 ) 1,112 ( 175 ) A 60 - 53 - A- 388 - 572 - $ 3,217 $ ( 130 ) $ 2,969 $ ( 182 ) |
Schedule Of Offsetting Assets And Liabilities | As of March 31, 2021 Embedded Derivative Derivative Instruments Instruments Total Financial Assets Gross amount of recognized assets $ 5,680 $ 2,400 $ 8,080 Gross amounts offset ( 1,848 ) - ( 1,848 ) Net amount of assets 3,832 2,400 6,232 Gross amounts not offset: Cash collateral ( 3,217 ) - ( 3,217 ) Non-cash collateral ( 372 ) - ( 372 ) Net amount $ 243 $ 2,400 $ 2,643 Financial Liabilities Gross amount of recognized liabilities $ 666 $ 6,555 $ 7,221 Gross amounts offset ( 4 ) - ( 4 ) Net amount of liabilities 662 6,555 7,217 Gross amounts not offset: Cash collateral ( 130 ) - ( 130 ) Non-cash collateral - - - Net amount $ 532 $ 6,555 $ 7,087 As of December 31, 2020 Embedded Derivative Derivative Instruments Instruments Total Financial Assets Gross amount of recognized assets $ 4,978 $ 1,082 $ 6,060 Gross amounts offset ( 1,869 ) - ( 1,869 ) Net amount of assets 3,109 1,082 4,191 Gross amounts not offset: Cash collateral ( 2,969 ) - ( 2,969 ) Non-cash collateral ( 56 ) - ( 56 ) Net amount $ 84 $ 1,082 $ 1,166 Financial Liabilities Gross amount of recognized liabilities $ 902 $ 4,665 $ 5,567 Gross amounts offset ( 330 ) - ( 330 ) Net amount of liabilities 572 4,665 5,237 Gross amounts not offset: Cash collateral ( 182 ) - ( 182 ) Non-cash collateral - - - Net amount $ 390 $ 4,665 $ 5,055 |
Reinsurance (Tables)
Reinsurance (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Reinsurance [Abstract] | |
Schedule Of Assets In Support Of Reserves | As of As of March 31, December 31, 2021 2020 Fixed maturity AFS securities $ 1,357 $ 1,531 Trading securities 3,293 3,357 Equity securities 20 17 Mortgage loans on real estate 875 832 Derivative investments 106 103 Other investments 212 167 Cash and invested cash 81 92 Accrued investment income 39 42 Other assets 6 3 Total $ 5,989 $ 6,144 |
Guaranteed Benefit Features (Ta
Guaranteed Benefit Features (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Guaranteed Benefit Features [Abstract] | |
Information On Guaranteed Death Benefit Features | As of As of March 31, December 31, 2021 (1) 2020 (1) Return of Net Deposits Total account value $ 111,818 $ 109,856 Net amount at risk (2) 77 72 Average attained age of contract holders 66 years 66 years Minimum Return Total account value $ 99 $ 100 Net amount at risk (2) 12 12 Average attained age of contract holders 78 years 78 years Guaranteed minimum return 5 % 5 % Anniversary Contract Value Total account value $ 27,903 $ 27,650 Net amount at risk (2) 410 390 Average attained age of contract holders 72 years 72 years (1) Our variable contracts with guarantees may offer more than one type of guarantee in each contract; therefore, the amounts listed are not mutually exclusive. (2) Represents the amount of death benefit in excess of the account balance that is subject to market fluctuations. |
Summary Of Guaranteed Death Benefit Liabilities | For the Three Months Ended March 31, 2021 2020 Balance as of beginning-of-year $ 121 $ 117 Changes in reserves 8 106 Benefits paid ( 5 ) ( 8 ) Balance as of end-of-period $ 124 $ 215 |
Account Balances Of Variable Annuity Contracts With Guarantees Invested In Separate Accounts | As of As of March 31, December 31, 2021 2020 Asset Type Domestic equity $ 71,993 $ 70,362 International equity 20,813 20,855 Fixed income 43,920 43,521 Total $ 136,726 $ 134,738 Percent of total variable annuity separate account values 98 % 98 % |
Liability For Unpaid Claims (Ta
Liability For Unpaid Claims (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Liability For Unpaid Claims [Abstract] | |
Changes In Liability For Unpaid Claims | For the Three Months Ended March 31, 2021 2020 Balance as of beginning-of-year $ 5,934 $ 5,552 Reinsurance recoverable 151 152 Net balance as of beginning-of-year 5,783 5,400 Incurred related to: Current year 1,025 885 Prior years: Interest 42 43 All other incurred (1) ( 101 ) ( 65 ) Total incurred 966 863 Paid related to: Current year ( 302 ) ( 240 ) Prior years ( 601 ) ( 518 ) Total paid ( 903 ) ( 758 ) Net balance as of end-of-period 5,846 5,505 Reinsurance recoverable 151 150 Balance as of end-of-period $ 5,997 $ 5,655 (1) All other incurred is primarily impacted by the level of claim resolutions in the period compared to that which is expected by the reserve assumption. A negative number implies a favorable result where claim resolutions were more favorable than assumed. Our claim resolution rate assumption used in determining reserves is our expectation of the resolution rate we will experience over the long-term life of the block of claims. It will vary from actual experience in any one period, both favorably and unfavorably. |
Shares and Stockholder's Equi_2
Shares and Stockholder's Equity (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Shares and Stockholder's Equity [Abstract] | |
Components And Changes In Accumulated OCI | For the Three Months Ended March 31, 2021 2020 Unrealized Gain (Loss) on Fixed Maturity AFS Securities Balance as of beginning-of-year $ 8,993 $ 5,637 Cumulative effect from adoption of new accounting standard - 40 Unrealized holding gains (losses) arising during the period ( 7,077 ) ( 4,357 ) Change in foreign currency exchange rate adjustment ( 41 ) ( 150 ) Change in DAC, VOBA, DSI, future contract benefits and other contract holder funds 3,287 1,263 Income tax benefit (expense) 817 691 Less: Reclassification adjustment for gains (losses) included in net income (loss) 1 ( 3 ) Associated amortization of DAC, VOBA, DSI and DFEL ( 4 ) 27 Income tax benefit (expense) 1 ( 5 ) Balance as of end-of-period $ 5,981 $ 3,105 Unrealized Other-Than-Temporary-Impairment on Fixed Maturity AFS Securities Balance as of beginning-of-year $ - $ 40 Cumulative effect from adoption of new accounting standard - ( 40 ) Balance as of end-of-period $ - $ - Unrealized Gain (Loss) on Derivative Instruments Balance as of beginning-of-year $ 42 $ 181 Unrealized holding gains (losses) arising during the period ( 266 ) 553 Change in foreign currency exchange rate adjustment 47 153 Change in DAC, VOBA, DSI and DFEL 14 ( 48 ) Income tax benefit (expense) 43 ( 140 ) Less: Reclassification adjustment for gains (losses) included in net income (loss) 9 12 Associated amortization of DAC, VOBA, DSI and DFEL ( 1 ) ( 1 ) Income tax benefit (expense) ( 2 ) ( 2 ) Balance as of end-of-period $ ( 126 ) $ 690 Funded Status of Employee Benefit Plans Balance as of beginning-of-year $ ( 14 ) $ ( 22 ) Adjustment arising during the period ( 1 ) - Balance as of end-of-period $ ( 15 ) $ ( 22 ) |
Schedule of Reclassifications Out Of AOCI | For the Three Months Ended March 31, 2021 2020 Unrealized Gain (Loss) on Fixed Maturity AFS Securities Gross reclassification $ 1 $ ( 3 ) Realized gain (loss) Associated amortization of DAC, VOBA, DSI and DFEL ( 4 ) 27 Realized gain (loss) Reclassification before income Income (loss) from continuing tax benefit (expense) ( 3 ) 24 operations before taxes Income tax benefit (expense) 1 ( 5 ) Federal income tax expense (benefit) Reclassification, net of income tax $ ( 2 ) $ 19 Net income (loss) Unrealized Gain (Loss) on Derivative Instruments Gross reclassifications: Interest rate contracts $ 1 $ - Net investment income Foreign currency contracts 10 11 Net investment income Foreign currency contracts ( 2 ) 1 Realized gain (loss) Total gross reclassifications 9 12 Associated amortization of DAC, VOBA, DSI and DFEL ( 1 ) ( 1 ) Commissions and other expenses Reclassifications before income Income (loss) from continuing tax benefit (expense) 8 11 operations before taxes Income tax benefit (expense) ( 2 ) ( 2 ) Federal income tax expense (benefit) Reclassifications, net of income tax $ 6 $ 9 Net income (loss) |
Realized Gain (Loss) (Tables)
Realized Gain (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Realized Gain (Loss) [Abstract] | |
Schedule Of Realized Gain (Loss) | For the Three Months Ended March 31, 2021 2020 Fixed maturity AFS securities: Gross gains $ 10 $ 5 Gross losses ( 9 ) ( 8 ) Credit loss benefit (expense) (1) ( 2 ) ( 18 ) Realized gain (loss) on equity securities (2) 10 ( 19 ) Credit loss benefit (expense) on mortgage loans on real estate 24 ( 70 ) Other gain (loss) on investments 3 ( 1 ) Associated amortization of DAC, VOBA, DSI and DFEL and changes in other contract holder funds ( 5 ) 26 Total realized gain (loss) related to certain financial assets 32 ( 85 ) Realized gain (loss) on the mark-to-market on certain instruments (3)(4) 218 184 Indexed annuity and IUL contracts net derivatives results: (5) Gross gain (loss) 32 ( 49 ) Associated amortization of DAC, VOBA, DSI and DFEL ( 13 ) 15 GLB fees ceded to LNBAR and attributed fees: Gross gain (loss) ( 50 ) ( 59 ) Associated amortization of DAC, VOBA, DSI and DFEL ( 8 ) ( 8 ) Total realized gain (loss) $ 211 $ ( 2 ) (1) Includes changes in the allowance for credit losses as well as direct write-downs to amortized cost as a result of negative credit events. (2) Includes market adjustments on equity securities still held of $ 10 million and $( 18 ) million for the three months ended March 31, 2021 and 2020, respectively. (3) Represents changes in the fair values of certain derivative investments (not including those associated with our variable and indexed annuity and IUL contracts net derivative results), reinsurance related embedded derivatives, mortgage loans on real estate accounted for under the fair value option and trading securities. See Note 7 for information regarding Modco. (4) Includes gains and losses from fair value changes on mortgage loans on real estate accounted for under the fair value option of $ 1 million and $ 7 million for the three months ended March 31, 2021 and 2020, respectively. (5) 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. |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value of Financial Instruments [Abstract] | |
Carrying And Estimated Fair Values Of Financial Instruments | As of March 31, 2021 As of December 31, 2020 Carrying Fair Carrying Fair Value Value Value Value Assets Fixed maturity AFS securities $ 115,695 $ 115,695 $ 121,111 $ 121,111 Trading securities 4,308 4,308 4,442 4,442 Equity securities 121 121 127 127 Mortgage loans on real estate 17,159 17,978 16,681 18,129 Derivative investments (1) 3,453 3,453 3,109 3,109 Other investments 3,014 3,014 3,015 3,015 Cash and invested cash 1,086 1,086 1,462 1,462 Other assets: GLB direct embedded derivatives 1,831 1,831 450 450 GLB ceded embedded derivatives 42 42 82 82 Indexed annuity ceded embedded derivatives 527 527 550 550 LPR ceded derivative 268 268 - - Separate account assets 171,339 171,339 167,965 167,965 Liabilities Future contract benefits – indexed annuity and IUL contracts embedded derivatives ( 4,170 ) ( 4,170 ) ( 3,594 ) ( 3,594 ) Other contract holder funds: Remaining guaranteed interest and similar contracts ( 1,860 ) ( 1,860 ) ( 1,854 ) ( 1,854 ) Account values of certain investment contracts ( 40,650 ) ( 41,689 ) ( 40,917 ) ( 49,709 ) Short-term debt ( 568 ) ( 568 ) ( 497 ) ( 497 ) Long-term debt ( 2,332 ) ( 2,635 ) ( 2,412 ) ( 2,834 ) Reinsurance related embedded derivatives ( 516 ) ( 516 ) ( 540 ) ( 540 ) Other liabilities: Derivative liabilities (1) ( 228 ) ( 228 ) ( 353 ) ( 353 ) GLB ceded embedded derivatives ( 1,869 ) ( 1,869 ) ( 531 ) ( 531 ) (1) We have master netting agreements with each of our derivative counterparties, which allow for the netting of our derivative asset and liability positions by counterparty. |
Schedule Of Mortgage Loans With Election Of Fair Value Option | As of As of March 31, December 31, 2021 2020 Fair value $ 874 $ 832 Aggregate contractual principal 882 839 |
Fair Value Of Assets And Liabilities On A Recurring Basis | As of March 31, 2021 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 $ - $ 87,732 $ 7,772 $ 95,504 U.S. government bonds 400 6 5 411 State and municipal bonds - 6,374 - 6,374 Foreign government bonds - 415 66 481 RMBS - 2,842 1 2,843 CMBS - 1,506 1 1,507 ABS - 7,302 688 7,990 Hybrid and redeemable preferred securities 53 448 84 585 Trading securities - 3,593 715 4,308 Equity securities 12 50 59 121 Mortgage loans on real estate - - 874 874 Derivative investments (1) - 1,061 4,243 5,304 Cash and invested cash - 1,086 - 1,086 Other assets: GLB direct embedded derivatives - - 1,831 1,831 GLB ceded embedded derivatives - - 42 42 Indexed annuity ceded embedded derivatives - - 527 527 LPR ceded derivative - - 268 268 Separate account assets 595 170,736 - 171,331 Total assets $ 1,060 $ 283,151 $ 17,176 $ 301,387 Liabilities Future contract benefits – indexed annuity and IUL contracts embedded derivatives $ - $ - $ ( 4,170 ) $ ( 4,170 ) Reinsurance related embedded derivatives - ( 516 ) - ( 516 ) Other liabilities: Derivative liabilities (1) - ( 497 ) ( 1,582 ) ( 2,079 ) GLB ceded embedded derivatives - - ( 1,869 ) ( 1,869 ) Total liabilities $ - $ ( 1,013 ) $ ( 7,621 ) $ ( 8,634 ) As of December 31, 2020 Quoted Prices in Active Markets for Significant Significant Identical Observable Unobservable Total Assets Inputs Inputs Fair (Level 1) (Level 2) (Level 3) Value Assets Investments: Fixed maturity AFS securities: Corporate bonds $ - $ 93,663 $ 7,761 $ 101,424 U.S. government bonds 438 6 5 449 State and municipal bonds - 6,662 - 6,662 Foreign government bonds - 391 74 465 RMBS - 2,836 2 2,838 CMBS - 1,494 1 1,495 ABS - 6,608 570 7,178 Hybrid and redeemable preferred securities 53 444 103 600 Trading securities 5 3,794 643 4,442 Equity securities 22 48 57 127 Mortgage loans on real estate - - 832 832 Derivative investments (1) - 1,733 3,575 5,308 Cash and invested cash - 1,462 - 1,462 Other assets: GLB direct embedded derivatives - - 450 450 GLB ceded embedded derivatives - - 82 82 Indexed annuity ceded embedded derivatives - - 550 550 Separate account assets 606 167,351 - 167,957 Total assets $ 1,124 $ 286,492 $ 14,705 $ 302,321 Liabilities Future contract benefits – indexed annuity and IUL contracts embedded derivatives $ - $ - $ ( 3,594 ) $ ( 3,594 ) Reinsurance related embedded derivatives - ( 540 ) - ( 540 ) Other liabilities: Derivative liabilities (1) - ( 519 ) ( 2,033 ) ( 2,552 ) GLB ceded embedded derivatives - - ( 531 ) ( 531 ) Total liabilities $ - $ ( 1,059 ) $ ( 6,158 ) $ ( 7,217 ) (1) Derivative investment assets and liabilities are presented within the fair value hierarchy on a gross basis by derivative type and not on a master netting basis by counterparty. |
Fair Value Measured On A Recurring Basis Reconciliation | For the Three Months Ended March 31, 2021 Gains Issuances, Transfers Items (Losses) Sales, Into or Included in Maturities, Out Beginning in OCI Settlements, of Ending Fair Net and Calls, Level 3, Fair Value Income Other (1) Net Net (2) Value Investments: (3) Fixed maturity AFS securities: Corporate bonds $ 7,761 $ 1 $ ( 121 ) $ 158 $ ( 27 ) $ 7,772 U.S. government bonds 5 - - - - 5 Foreign government bonds 74 - ( 8 ) - - 66 RMBS 2 - - - ( 1 ) 1 CMBS 1 - - - - 1 ABS 570 - ( 7 ) 183 ( 58 ) 688 Hybrid and redeemable preferred securities 103 - 1 ( 20 ) - 84 Trading securities 643 ( 3 ) - 66 9 715 Equity securities 57 7 - ( 5 ) - 59 Mortgage loans on real estate 832 2 3 37 - 874 Derivative investments 1,542 1,251 - ( 132 ) - 2,661 Other assets: GLB direct embedded derivatives (4) 450 1,381 - - - 1,831 GLB ceded embedded derivatives (4) 82 ( 40 ) - - - 42 Indexed annuity ceded embedded derivatives (4) 550 32 - ( 55 ) - 527 LPR ceded derivative (5) - ( 50 ) - - 318 268 Future contract benefits – indexed annuity and IUL contracts embedded derivatives (4) ( 3,594 ) ( 626 ) - 50 - ( 4,170 ) Other liabilities – GLB ceded embedded derivatives (4) ( 531 ) ( 1,338 ) - - - ( 1,869 ) Total, net $ 8,547 $ 617 $ ( 132 ) $ 282 $ 241 $ 9,555 For the Three Months Ended March 31, 2020 Gains Issuances, Transfers Items (Losses) Sales, Into or Included in Maturities, Out Beginning in OCI Settlements, of Ending Fair Net and Calls, Level 3, Fair Value Income Other (1) Net Net (2) Value Investments: (3) Fixed maturity AFS securities: Corporate bonds $ 6,978 $ - $ ( 367 ) $ 102 $ 42 $ 6,755 U.S. government bonds 5 - - - - 5 Foreign government bonds 90 - ( 3 ) - - 87 RMBS 11 - - - ( 10 ) 1 CMBS 1 - - - - 1 ABS 268 - ( 4 ) 21 ( 89 ) 196 Hybrid and redeemable preferred securities 78 - ( 6 ) - - 72 Trading securities 666 ( 32 ) - ( 6 ) 23 651 Equity securities 30 - - - - 30 Derivative investments 868 997 279 ( 117 ) - 2,027 Other assets: (4) GLB direct embedded derivatives 450 ( 450 ) - - - - GLB ceded embedded derivatives 60 4,529 - - - 4,589 Indexed annuity ceded embedded derivatives 927 ( 115 ) - ( 13 ) - 799 Future contract benefits – indexed annuity and IUL contracts embedded derivatives (4) ( 2,585 ) 1,143 - 62 - ( 1,380 ) Other liabilities: (4) GLB direct embedded derivatives - ( 4,596 ) - - - ( 4,596 ) GLB ceded embedded derivatives ( 510 ) 510 - - - - Total, net $ 7,337 $ 1,986 $ ( 101 ) $ 49 $ ( 34 ) $ 9,237 (1) The changes in fair value of the interest rate swaps are offset by an adjustment to derivative investments (see Note 5). (2) Transfers into or out of Level 3 for fixed maturity AFS and trading securities are reported at amortized cost as of the beginning-of-year. For fixed maturity AFS and trading securities, the difference between beginning-of-year amortized cost and beginning-of-year fair value was included in OCI and earnings, respectively, in the prior period. (3) Amortization and accretion of premiums and discounts are included in net investment income on our Consolidated Statements of Comprehensive Income (Loss). Gains (losses) from sales, maturities, settlements and calls and credit loss expense are included in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). (4) Gains (losses) from the changes in fair value are included in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). (5) Gains (losses) from the changes in fair value are included in benefits on our Consolidated Statements of Comprehensive Income (Loss). |
Schedule Of Investment Holdings Movements | For the Three Months Ended March 31, 2021 Issuances Sales Maturities Settlements Calls Total Investments: Fixed maturity AFS securities: Corporate bonds $ 304 $ ( 28 ) $ ( 15 ) $ ( 86 ) $ ( 17 ) $ 158 ABS 200 - - ( 17 ) - 183 Hybrid and redeemable preferred securities - ( 20 ) - - - ( 20 ) Trading securities 88 ( 3 ) - ( 19 ) - 66 Equity securities 3 ( 8 ) - - - ( 5 ) Mortgage loans on real estate 72 ( 35 ) - - - 37 Derivative investments 174 ( 124 ) ( 182 ) - - ( 132 ) Other assets – indexed annuity ceded embedded derivatives 3 - - ( 58 ) - ( 55 ) Future contract benefits – indexed annuity and IUL contracts embedded derivatives ( 108 ) - - 158 - 50 Total, net $ 736 $ ( 218 ) $ ( 197 ) $ ( 22 ) $ ( 17 ) $ 282 For the Three Months Ended March 31, 2020 Issuances Sales Maturities Settlements Calls Total Investments: Fixed maturity AFS securities: Corporate bonds $ 292 $ ( 92 ) $ 2 $ ( 51 ) $ ( 49 ) $ 102 ABS 36 - - ( 15 ) - 21 Trading securities 37 ( 25 ) - ( 18 ) - ( 6 ) Derivative investments 118 ( 123 ) ( 112 ) - - ( 117 ) Other assets – indexed annuity ceded embedded derivatives 9 - - ( 22 ) - ( 13 ) Future contract benefits – indexed annuity and IUL contracts embedded derivatives 11 - - 51 - 62 Total, net $ 503 $ ( 240 ) $ ( 110 ) $ ( 55 ) $ ( 49 ) $ 49 |
Changes In Unrealized Gains (Losses) Within Level 3 Financial Instruments Carried At Fair Value And Still Held | For the Three Months Ended March 31, 2021 2020 Trading securities (1) $ ( 2 ) $ - Equity securities (1) 6 - Mortgage loans on real estate (1) 4 - Derivative investments (1) 1,053 895 Embedded derivatives – Indexed annuity and IUL contracts (1) 43 ( 61 ) Other assets: GLB direct and ceded (1) 1,545 ( 4,867 ) LPR ceded derivative (2) ( 50 ) - Other liabilities – GLB direct and ceded (1) ( 1,542 ) 4,867 Total, net $ 1,057 $ 834 (1) Included in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). (2) Included in benefits on our Consolidated Statements of Comprehensive Income (Loss). |
Changes in Unrealized Gains (Losses) Included in OCI | For the Three Months Ended March 31, 2021 2020 Fixed maturity AFS securities: Corporate bonds $ ( 122 ) $ ( 311 ) Foreign government bonds ( 8 ) ( 2 ) ABS ( 8 ) ( 3 ) Hybrid and redeemable preferred securities 2 ( 5 ) Mortgage loans on real estate 3 - Total, net $ ( 133 ) $ ( 321 ) |
Components Of The Transfers In And Out Of Level 3 | For the Three For the Three Months Ended Months Ended March 31, 2021 March 31, 2020 Transfers Transfers Transfers Transfers Into Out of Into Out of Level 3 Level 3 Total Level 3 Level 3 Total Investments: Fixed maturity AFS securities: Corporate bonds $ 11 $ ( 38 ) $ ( 27 ) $ 119 $ ( 77 ) $ 42 RMBS - ( 1 ) ( 1 ) - ( 10 ) ( 10 ) ABS - ( 58 ) ( 58 ) 5 ( 94 ) ( 89 ) Trading securities 12 ( 3 ) 9 23 - 23 Other assets – LPR ceded derivative 318 - 318 - - - Total, net $ 341 $ ( 100 ) $ 241 $ 147 $ ( 181 ) $ ( 34 ) |
Fair Value Inputs Quantitative Information | Weighted Average Fair Valuation Significant Assumption or Input Value Technique Unobservable Inputs Input Ranges Range (1) Assets Investments: Fixed maturity AFS and trading securities: Corporate bonds $ 3,367 Discounted cash flow Liquidity/duration adjustment (2) 0.3 % - 7.9 % 1.5 % Foreign government bonds 29 Discounted cash flow Liquidity/duration adjustment (2) 5.7 % - 5.7 % 5.7 % ABS 20 Discounted cash flow Liquidity/duration adjustment (2) 3.0 % - 3.0 % 3.0 % Equity securities 20 Discounted cash flow Liquidity/duration adjustment (2) 4.5 % - 6.2 % 5.8 % Other assets: GLB direct and ceded embedded derivatives 1,873 Discounted cash flow Long-term lapse rate (3) 1 % - 30 % (10) Utilization of guaranteed withdrawals (4) 85 % - 100 % 94 % Claims utilization factor (5) 60 % - 100 % (10) Premiums utilization factor (5) 80 % - 115 % (10) NPR (6) 0.07 % - 1.43 % 0.95 % Mortality rate (7) (9) (10) Volatility (8) 1 % - 28 % 14.71 % Indexed annuity ceded embedded derivatives 527 Discounted cash flow Lapse rate (3) 0 % - 9 % (10) Mortality rate (7) (9) (10) LPR ceded derivative 268 Discounted cash flow Long-term lapse rate (3) 0 % - 1.65 % (10) NPR (6) 0.07 % - 1.43 % 0.93 % Mortality rate (7) (9) (10) Liabilities Future contract benefits – indexed annuity contract embedded derivatives $ ( 4,107 ) Discounted cash flow Lapse rate (3) 0 % - 9 % (10) Mortality rate (7) (9) (10) Other liabilities – GLB ceded embedded derivatives ( 1,869 ) Discounted cash flow Long-term lapse rate (3) 1 % - 30 % (10) Utilization of guaranteed withdrawals (4) 85 % - 100 % 94 % Claims utilization factor (5) 60 % - 100 % (10) Premiums utilization factor (5) 80 % - 115 % (10) NPR (6) 0.07 % - 1.43 % 0.95 % Mortality rate (7) (9) (10) Volatility (8) 1 % - 28 % 14.71 % (1) Unobservable inputs were weighted by the relative fair value of the instruments, unless otherwise noted. (2) The liquidity/duration adjustment input represents an estimated market participant composite of adjustments attributable to liquidity premiums, expected durations, structures and credit quality that would be applied to the market observable information of an investment. (3) The lapse rate input represents the estimated probability of a contract surrendering during a year, and thereby forgoing any future benefits. The range for indexed annuity contracts represents the lapse rates during the surrender charge period. (4) The utilization of guaranteed withdrawals input represents the estimated percentage of contract holders that utilize the guaranteed withdrawal feature. (5) The utilization factors are applied to the present value of claims or premiums, as appropriate, in the GLB reserve calculation to estimate the impact of inefficient withdrawal behavior, including taking less than or more than the maximum guaranteed withdrawal. (6) The NPR input represents the estimated additional credit spread that market participants would apply to the market observable discount rate when pricing a contract. The NPR input for direct and ceded embedded derivatives was weighted by the absolute value of the sensitivity of the reserve to the NPR assumption. The NPR input for LPR ceded derivative was weighted using a simple average. (7) The mortality rate input represents the estimated probability of when an individual belonging to a particular group, categorized according to age or some other factor such as gender, will die. (8) The volatility input represents overall volatilities assumed for the underlying variable annuity funds, which include a mixture of equity and fixed-income assets. Fair value of the variable annuity GLB embedded derivatives would increase if higher volatilities were used for valuation. Volatility assumptions vary by fund due to the benchmarking of different indices. The volatility input was weighted by the relative account value assigned to each index. (9) The mortality rate is based on a combination of company and industry experience, adjusted for improvement factors. (10) A weighted average input range is not a meaningful measurement for lapse rate, utilization factors or mortality rate. |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Segment Information [Abstract] | |
Reconciliation Of Revenue From Segments To Consolidated | For the Three Months Ended March 31, 2021 2020 Revenues Operating revenues: Annuities $ 1,097 $ 1,021 Retirement Plan Services 323 293 Life Insurance 1,819 1,723 Group Protection 1,253 1,224 Other Operations 35 35 Excluded realized gain (loss), pre-tax 162 ( 55 ) Total revenues $ 4,689 $ 4,241 |
Reconciliation Of Income (Loss) From Operations By Segment To Consolidated Net Income (Loss) | For the Three Months Ended March 31, 2021 2020 Net Income (Loss) Income (loss) from operations: Annuities $ 297 $ 322 Retirement Plan Services 54 37 Life Insurance 42 190 Group Protection ( 26 ) 40 Other Operations ( 41 ) ( 33 ) Excluded realized gain (loss), after-tax 127 ( 44 ) Benefit ratio unlocking, after-tax 11 ( 5 ) Acquisition and integration costs related to mergers and acquisitions, after-tax - ( 5 ) Net income (loss) $ 464 $ 502 |
Nature of Operations and Basi_3
Nature of Operations and Basis of Presentation (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2021entity | |
Product Information [Line Items] | |
Number of wholly owned subsidiaries | 2 |
Lincoln Life & Annuity Company of New York [Member] | |
Product Information [Line Items] | |
Ownership percent | 100.00% |
Variable Interest Entities (Nar
Variable Interest Entities (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Variable Interest Entity [Line Items] | ||
Carrying Amounts of our Investments in LPs and LLCs, As Recognized In Other Investments on our Consolidated Balance Sheets | $ 3,024 | $ 3,025 |
Income Tax Credits And Other Tax Benefits From Qualified Affordable Housing Projects | 1 | |
Maximum [Member] | ||
Variable Interest Entity [Line Items] | ||
Income Tax Credits And Other Tax Benefits From Qualified Affordable Housing Projects | 1 | |
Limited Partnerships and Limited Liability Companies [Member] | ||
Variable Interest Entity [Line Items] | ||
Carrying Amounts of our Investments in LPs and LLCs, As Recognized In Other Investments on our Consolidated Balance Sheets | 2,300 | 2,100 |
Carrying Amount Of Investments In Qualified Affordable Housing Projects | $ 6 | $ 7 |
Investments (Narrative) (Detail
Investments (Narrative) (Details) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021USD ($)loanitem | Dec. 31, 2020USD ($)itemloan | |
Schedule of Investments [Line Items] | ||
Decrease in gross AFS securities unrealized gains (losses) | $ 571,000,000 | |
Number of partnerships in alternative investment portfolio | item | 278 | 270 |
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 | $ 22,000,000 | |
Investment commitments | 2,000,000,000 | |
Investment commitments for limited partnerships | 1,100,000,000 | |
Investment commitments for private placements | 416,000,000 | |
Investment commitments for mortgage loans on real estate | $ 400,000,000 | |
Minimum [Member] | ||
Schedule of Investments [Line Items] | ||
Percentage of the fair value of securities obtained as collateral under reverse repurchase agreements. | 80.00% | |
Maximum [Member] | ||
Schedule of Investments [Line Items] | ||
Percentage of the fair value of securities obtained as collateral under reverse repurchase agreements. | 95.00% | |
Commercial [Member] | ||
Schedule of Investments [Line Items] | ||
Number of impaired loans | item | 9 | 4 |
Impaired financing receivable, carrying amount | $ 3,000,000 | $ 1 |
Residential [Member] | ||
Schedule of Investments [Line Items] | ||
Number of loans past due | loan | 113 | 147 |
Number of impaired loans | 74 | 76 |
Impaired financing receivable, carrying amount | $ 34,000,000 | $ 34,000,000 |
Mortgage Loans On Real Estate [Member] | Geographic Concentration [Member] | Commercial [Member] | California [Member] | ||
Schedule of Investments [Line Items] | ||
Concentration risk, percentage | 25.00% | 24.00% |
Mortgage Loans On Real Estate [Member] | Geographic Concentration [Member] | Commercial [Member] | Texas [Member] | ||
Schedule of Investments [Line Items] | ||
Concentration risk, percentage | 10.00% | 10.00% |
Mortgage Loans On Real Estate [Member] | Geographic Concentration [Member] | Residential [Member] | California [Member] | ||
Schedule of Investments [Line Items] | ||
Concentration risk, percentage | 28.00% | 32.00% |
Mortgage Loans On Real Estate [Member] | Geographic Concentration [Member] | Residential [Member] | Florida [Member] | ||
Schedule of Investments [Line Items] | ||
Concentration risk, percentage | 19.00% | 18.00% |
Corporate Bonds [Member] | ||
Schedule of Investments [Line Items] | ||
Percentage of fair value rated as investment grade | 96.00% | 96.00% |
Amortized cost of portfolio rated below investment grade | $ 3,800,000,000 | $ 3,800,000,000 |
Fair value of portfolio rated below investment grade | 3,900,000,000 | 4,000,000,000 |
Fixed Maturity AFS Securities [Member] | Federal Home Loan Mortgage Corporation [Member] | Investments [Member] | ||
Schedule of Investments [Line Items] | ||
Fair value | $ 1,100,000,000 | $ 1,200,000,000 |
Concentration risk, percentage | 1.00% | 1.00% |
Fixed Maturity AFS Securities [Member] | White Chapel LLC [Member] | Investments [Member] | ||
Schedule of Investments [Line Items] | ||
Fair value | $ 1,000,000,000 | |
Concentration risk, percentage | 1.00% | |
Fixed Maturity AFS Securities [Member] | Fannie Mae [Member] | Investments [Member] | ||
Schedule of Investments [Line Items] | ||
Fair value | $ 1,000,000,000 | |
Concentration risk, percentage | 1.00% | |
Fixed Maturity AFS Securities [Member] | Financial Service [Member] | Investments [Member] | ||
Schedule of Investments [Line Items] | ||
Fair value | $ 20,700,000,000 | $ 21,700,000,000 |
Concentration risk, percentage | 14.00% | 14.00% |
Fixed Maturity AFS Securities [Member] | Consumer Non-Cyclical Industry [Member] | Investments [Member] | ||
Schedule of Investments [Line Items] | ||
Fair value | $ 17,900,000,000 | $ 19,200,000,000 |
Concentration risk, percentage | 12.00% | 13.00% |
Investments (Reconciliation Of
Investments (Reconciliation Of Available-For-Sale Securities From Cost Basis To Fair Value) (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | ||||
Allowance for Credit Losses | $ 14 | $ 13 | $ 18 | |
Fixed Maturity AFS Securities [Member] | ||||
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | ||||
Amortized Cost | 104,684 | 103,021 | ||
Gross Unrealized Gains | 11,780 | 18,287 | ||
Gross Unrealized Losses | 755 | 184 | ||
OTTI | 14 | 13 | ||
Fair Value | 115,695 | 121,111 | ||
Corporate Bonds [Member] | ||||
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | ||||
Allowance for Credit Losses | 13 | 12 | $ 18 | |
Corporate Bonds [Member] | Fixed Maturity AFS Securities [Member] | ||||
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | ||||
Amortized Cost | 86,191 | 85,625 | ||
Gross Unrealized Gains | 9,974 | 15,947 | ||
Gross Unrealized Losses | 648 | 136 | ||
OTTI | 13 | 12 | ||
Fair Value | 95,504 | 101,424 | ||
ABS [Member] | Fixed Maturity AFS Securities [Member] | ||||
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | ||||
Amortized Cost | 7,875 | 7,035 | ||
Gross Unrealized Gains | 142 | 158 | ||
Gross Unrealized Losses | 27 | 15 | ||
Fair Value | 7,990 | 7,178 | ||
U.S. Government Bonds [Member] | Fixed Maturity AFS Securities [Member] | ||||
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | ||||
Amortized Cost | 365 | 369 | ||
Gross Unrealized Gains | 49 | 81 | ||
Gross Unrealized Losses | 3 | 1 | ||
Fair Value | 411 | 449 | ||
Foreign Government Bonds [Member] | Fixed Maturity AFS Securities [Member] | ||||
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | ||||
Amortized Cost | 424 | 380 | ||
Gross Unrealized Gains | 63 | 86 | ||
Gross Unrealized Losses | 6 | 1 | ||
Fair Value | 481 | 465 | ||
RMBS [Member] | ||||
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | ||||
Allowance for Credit Losses | 1 | 1 | ||
RMBS [Member] | Fixed Maturity AFS Securities [Member] | ||||
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | ||||
Amortized Cost | 2,607 | 2,551 | ||
Gross Unrealized Gains | 240 | 289 | ||
Gross Unrealized Losses | 3 | 1 | ||
OTTI | 1 | 1 | ||
Fair Value | 2,843 | 2,838 | ||
CMBS [Member] | Fixed Maturity AFS Securities [Member] | ||||
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | ||||
Amortized Cost | 1,455 | 1,380 | ||
Gross Unrealized Gains | 67 | 115 | ||
Gross Unrealized Losses | 15 | |||
Fair Value | 1,507 | 1,495 | ||
State And Municipal Bonds [Member] | Fixed Maturity AFS Securities [Member] | ||||
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | ||||
Amortized Cost | 5,252 | 5,145 | ||
Gross Unrealized Gains | 1,154 | 1,517 | ||
Gross Unrealized Losses | 32 | |||
Fair Value | 6,374 | 6,662 | ||
Hybrid And Redeemable Preferred Securities [Member] | Fixed Maturity AFS Securities [Member] | ||||
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | ||||
Amortized Cost | 515 | 536 | ||
Gross Unrealized Gains | 91 | 94 | ||
Gross Unrealized Losses | 21 | 30 | ||
Fair Value | $ 585 | $ 600 |
Investments (Available-For-Sale
Investments (Available-For-Sale Securities By Contractual Maturities) (Details) - Fixed Maturity AFS Securities [Member] - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Available-for-sale Securities, Debt Maturities, Amortized Cost | ||
Amortized Cost | $ 104,684 | $ 103,021 |
Available-for-sale Securities, Debt Maturities, Fair Value | ||
Fair Value | 115,695 | $ 121,111 |
Fixed Maturity AFS Securities Excluding Structured Securities [Member] | ||
Available-for-sale Securities, Debt Maturities, Amortized Cost | ||
Due in one year or less | 3,210 | |
Due after one year through five years | 15,083 | |
Due after five years through ten years | 19,614 | |
Due after ten years | 54,840 | |
Amortized Cost | 92,747 | |
Available-for-sale Securities, Debt Maturities, Fair Value | ||
Due in one year or less | 3,231 | |
Due after one year through five years | 15,965 | |
Due after five years through ten years | 21,218 | |
Due after ten years | 62,941 | |
Fair Value | 103,355 | |
Structured Securities [Member] | ||
Available-for-sale Securities, Debt Maturities, Amortized Cost | ||
Amortized Cost | 11,937 | |
Available-for-sale Securities, Debt Maturities, Fair Value | ||
Fair Value | $ 12,340 |
Investments (Fair Value And Gro
Investments (Fair Value And Gross Unrealized Losses In A Continuous Unrealized Loss Position) (Details) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021USD ($)security | Dec. 31, 2020USD ($)security | |
Schedule of Available-for-sale Securities [Line Items] | ||
Total number of fixed maturity AFS securities in an unrealized loss position | security | 1,723 | |
Fixed Maturity AFS Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total number of fixed maturity AFS securities in an unrealized loss position | security | 782 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ||
Less Than or Equal to Twelve Months | $ 15,485 | $ 4,552 |
Greater Than Twelve Months | 947 | 1,045 |
Fair Value - Total | 16,432 | 5,597 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ||
Less Than or Equal to Twelve Months | 686 | 110 |
Greater Than Twelve Months | 69 | 74 |
Gross Unrealized Losses - Total | 755 | 184 |
Unrealized holding gains (losses) arising during the period | 2 | 1 |
Corporate Bonds [Member] | Fixed Maturity AFS Securities [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ||
Less Than or Equal to Twelve Months | 11,558 | 2,785 |
Greater Than Twelve Months | 686 | 588 |
Fair Value - Total | 12,244 | 3,373 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ||
Less Than or Equal to Twelve Months | 595 | 85 |
Greater Than Twelve Months | 53 | 51 |
Gross Unrealized Losses - Total | 648 | 136 |
U.S. Government Bonds [Member] | Fixed Maturity AFS Securities [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ||
Less Than or Equal to Twelve Months | 25 | 28 |
Fair Value - Total | 25 | 28 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ||
Less Than or Equal to Twelve Months | 3 | 1 |
Gross Unrealized Losses - Total | 3 | 1 |
State And Municipal Bonds [Member] | Fixed Maturity AFS Securities [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ||
Less Than or Equal to Twelve Months | 719 | |
Fair Value - Total | 719 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ||
Less Than or Equal to Twelve Months | 32 | |
Gross Unrealized Losses - Total | 32 | |
Foreign Government Bonds [Member] | Fixed Maturity AFS Securities [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ||
Less Than or Equal to Twelve Months | 99 | 57 |
Fair Value - Total | 99 | 57 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ||
Less Than or Equal to Twelve Months | 6 | 1 |
Gross Unrealized Losses - Total | 6 | 1 |
RMBS [Member] | Fixed Maturity AFS Securities [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ||
Less Than or Equal to Twelve Months | 198 | 43 |
Greater Than Twelve Months | 6 | 6 |
Fair Value - Total | 204 | 49 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ||
Less Than or Equal to Twelve Months | 3 | 1 |
Gross Unrealized Losses - Total | 3 | 1 |
CMBS [Member] | Fixed Maturity AFS Securities [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ||
Less Than or Equal to Twelve Months | 362 | |
Fair Value - Total | 362 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ||
Less Than or Equal to Twelve Months | 15 | |
Gross Unrealized Losses - Total | 15 | |
ABS [Member] | Fixed Maturity AFS Securities [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ||
Less Than or Equal to Twelve Months | 2,400 | 1,527 |
Greater Than Twelve Months | 164 | 355 |
Fair Value - Total | 2,564 | 1,882 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ||
Less Than or Equal to Twelve Months | 24 | 9 |
Greater Than Twelve Months | 3 | 6 |
Gross Unrealized Losses - Total | 27 | 15 |
Hybrid And Redeemable Preferred Securities [Member] | Fixed Maturity AFS Securities [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ||
Less Than or Equal to Twelve Months | 124 | 112 |
Greater Than Twelve Months | 91 | 96 |
Fair Value - Total | 215 | 208 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ||
Less Than or Equal to Twelve Months | 8 | 13 |
Greater Than Twelve Months | 13 | 17 |
Gross Unrealized Losses - Total | $ 21 | $ 30 |
Investments (Schedule Of Availa
Investments (Schedule Of Available-For-Sale Securities Whose Value Is Below Amortized Cost) (Details) $ in Millions | Mar. 31, 2021USD ($)security | Dec. 31, 2020USD ($)security |
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Securities - Total | security | 1,723 | |
Fair Value Decline, Greater Than 20% [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value - Less than six months | $ 50 | $ 63 |
Fair Value - Six months or greater, but less than nine months | 52 | 2 |
Fair Value - Nine months or greater, but less than twelve months | 1 | 22 |
Fair Value - Twelve months or greater | 27 | 30 |
Fair Value - Total | 130 | 117 |
Gross Unrealized Losses - Less than six months | 16 | 23 |
Gross Unrealized Losses - Six months or greater, but less than nine months | 23 | 1 |
Gross Unrealized Losses - Nine months or greater, but less than twelve months | 1 | 6 |
Gross Unrealized Losses - Twelve months or greater | 8 | 11 |
Gross Unrealized Losses - Total | $ 48 | $ 41 |
Number of Securities - Less than six months | security | 10 | 14 |
Number of Securities - Six months or greater, but less than nine months | security | 4 | 4 |
Number of Securities - Nine months or greater, but less than twelve months | security | 3 | 13 |
Number of Securities - Twelve months or greater | security | 28 | 20 |
Number of Securities - Total | security | 45 | 51 |
Investments (Changes In Allowan
Investments (Changes In Allowance For Credit Losses Of AFS) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items] | ||
Balance as of beginning-of-year | $ 13 | |
Additions for securities for which credit losses were not previously recognized | 18 | |
Additions from purchases of PCD debt securities | ||
Additions (reductions) for securities for which credit losses were previously recognized | 1 | |
Balance as of end-of-year | 14 | 18 |
Accrued interest receivable on fixed maturity AFS securities | 1,000 | 1,000 |
Corporate Bonds [Member] | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items] | ||
Balance as of beginning-of-year | 12 | |
Additions for securities for which credit losses were not previously recognized | 18 | |
Additions from purchases of PCD debt securities | ||
Additions (reductions) for securities for which credit losses were previously recognized | 1 | |
Balance as of end-of-year | 13 | 18 |
RMBS [Member] | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items] | ||
Balance as of beginning-of-year | 1 | |
Additions from purchases of PCD debt securities | ||
Balance as of end-of-year | 1 | |
ABS [Member] | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items] | ||
Additions from purchases of PCD debt securities |
Investments (Composition Of Cur
Investments (Composition Of Current And Past Due Mortgage Loans On Real Estate) (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Mortgage Loans On Real Estate Aging [Abstract] | ||||
Allowance for credit losses | $ (183) | $ (203) | $ (160) | $ (2) |
Unamortized premium (discount) | 10 | 8 | ||
Mark-to-market gains (losses) | (6) | (5) | ||
Total carrying value | 17,159 | 16,681 | ||
Financial Asset Not Past Due [Member] | ||||
Mortgage Loans On Real Estate Aging [Abstract] | ||||
Current | 17,243 | 16,772 | ||
30 to 59 Days Past Due [Member] | ||||
Mortgage Loans On Real Estate Aging [Abstract] | ||||
Current | 32 | 32 | ||
60 to 89 Days Past Due [Member] | ||||
Mortgage Loans On Real Estate Aging [Abstract] | ||||
Current | 8 | 8 | ||
90 Or More Days Past Due [Member] | ||||
Mortgage Loans On Real Estate Aging [Abstract] | ||||
Current | 55 | 69 | ||
Commercial [Member] | ||||
Mortgage Loans On Real Estate Aging [Abstract] | ||||
Current | 16,570 | 16,152 | ||
Allowance for credit losses | (171) | (186) | (125) | |
Unamortized premium (discount) | (13) | (14) | ||
Mark-to-market gains (losses) | (6) | (5) | ||
Total carrying value | 16,393 | 15,961 | ||
Commercial [Member] | Financial Asset Not Past Due [Member] | ||||
Mortgage Loans On Real Estate Aging [Abstract] | ||||
Current | 16,577 | 16,162 | ||
Commercial [Member] | 30 to 59 Days Past Due [Member] | ||||
Mortgage Loans On Real Estate Aging [Abstract] | ||||
Current | 6 | 4 | ||
Residential [Member] | ||||
Mortgage Loans On Real Estate Aging [Abstract] | ||||
Current | 778 | 737 | ||
Allowance for credit losses | (12) | (17) | $ (35) | $ (2) |
Unamortized premium (discount) | 23 | 22 | ||
Total carrying value | 766 | 720 | ||
Residential [Member] | Financial Asset Not Past Due [Member] | ||||
Mortgage Loans On Real Estate Aging [Abstract] | ||||
Current | 666 | 610 | ||
Residential [Member] | 30 to 59 Days Past Due [Member] | ||||
Mortgage Loans On Real Estate Aging [Abstract] | ||||
Current | 26 | 28 | ||
Residential [Member] | 60 to 89 Days Past Due [Member] | ||||
Mortgage Loans On Real Estate Aging [Abstract] | ||||
Current | 8 | 8 | ||
Residential [Member] | 90 Or More Days Past Due [Member] | ||||
Mortgage Loans On Real Estate Aging [Abstract] | ||||
Current | $ 55 | $ 69 |
Investments (Schedule Of Averag
Investments (Schedule Of Average Carrying Value Of Impaired Mortgage Loans On Real Estate) (Details) - Commercial [Member] - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Information about impaired mortgage loans on real estate | ||
Average carrying value for impaired mortgage loans on real estate | $ 36 | $ 3 |
Interest income recognized on impaired mortgage loans on real estate | ||
Interest income collected on impaired mortgage loans on real estate |
Investments (Amortized Cost Of
Investments (Amortized Cost Of Mortgage Loans On Real Estate On Nonaccrual Status) (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual | $ 57 | $ 71 |
Commercial [Member] | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual with no ACL | ||
Nonaccrual | ||
Residential [Member] | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual | $ 57 | $ 71 |
Investments (Commercial Mortgag
Investments (Commercial Mortgage Loans By Year Of Origination) (Details) - Commercial [Member] $ in Millions | Mar. 31, 2021USD ($)item | Dec. 31, 2020USD ($)item |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021 | $ 1,511 | $ 1,527 |
2020 | 3,350 | 3,358 |
2019 | 2,564 | 2,576 |
2018 | 1,926 | 1,948 |
2017 | 6,534 | 1,907 |
2016 and prior | 685 | 4,836 |
Total | 16,570 | 16,152 |
Loan-to-value ratio, less than 65% [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021 | 1,362 | 1,495 |
2020 | 3,007 | 3,098 |
2019 | 2,335 | 2,379 |
2018 | 1,746 | 1,779 |
2017 | 6,241 | 1,711 |
2016 and prior | 660 | 4,695 |
Total | $ 15,351 | $ 15,157 |
2021 | item | 3.01 | 2.85 |
2020 | item | 2.20 | 2.24 |
2019 | item | 2.16 | 2.16 |
2018 | item | 2.34 | 2.34 |
2017 | item | 2.39 | 2.37 |
2016 and prior | item | 3 | 2.38 |
Loan-to-value ratio, 65% to 74% [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021 | $ 109 | $ 32 |
2020 | 318 | 258 |
2019 | 214 | 182 |
2018 | 153 | 169 |
2017 | 263 | 174 |
2016 and prior | 25 | 133 |
Total | $ 1,082 | $ 948 |
2021 | item | 1.47 | 1.52 |
2020 | item | 1.96 | 1.78 |
2019 | item | 1.54 | 1.49 |
2018 | item | 1.74 | 1.73 |
2017 | item | 1.75 | 1.56 |
2016 and prior | item | 1.95 | 1.95 |
Loan-to-value ratio, 75% to 100% [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021 | $ 40 | |
2020 | 25 | $ 2 |
2019 | 15 | 15 |
2018 | 27 | |
2017 | 30 | 22 |
2016 and prior | 8 | |
Total | $ 137 | $ 47 |
2021 | item | 2.21 | |
2020 | item | 1.79 | 1.74 |
2019 | item | 0.76 | 0.71 |
2018 | item | 0.67 | |
2017 | item | 1.40 | 1.58 |
2016 and prior | item | 1.02 |
Investments (Residential Mortga
Investments (Residential Mortgage Loans By Year Of Origination) (Details) - Residential [Member] - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021 | $ 77 | $ 184 |
2020 | 239 | 366 |
2019 | 304 | 187 |
2018 | 158 | |
Total | 778 | 737 |
Performing [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021 | 71 | 176 |
2020 | 197 | 315 |
2019 | 295 | 175 |
2018 | 158 | |
Total | 721 | 666 |
Nonperforming [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021 | 6 | 8 |
2020 | 42 | 51 |
2019 | 9 | 12 |
Total | $ 57 | $ 71 |
Investmenst (Changes In Allowan
Investmenst (Changes In Allowance For Credit Losses On Mortgage Loans On Real Estate) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Schedule of Investments [Line Items] | ||
Balance as of beginning-of-year | $ 203 | $ 2 |
Additions from provision for credit loss expense | 6 | 71 |
Additions from purchases of PCD mortgage loans on real estate | ||
Additions (reductions) for mortgage loans on real estate for which credit losses were previously recognized | (26) | |
Balance as of end-of-year | 183 | 160 |
Changes in economic assumptions increasing provision | (20) | 71 |
Accrued interest receivable excluded from credit losses | 50 | 50 |
Unfunded Loan Commitment [Member] | ||
Schedule of Investments [Line Items] | ||
Additions (reductions) for mortgage loans on real estate for which credit losses were previously recognized | 4 | |
Changes in economic assumptions increasing provision | 1 | |
Commercial [Member] | ||
Schedule of Investments [Line Items] | ||
Balance as of beginning-of-year | 186 | |
Additions from provision for credit loss expense | 4 | 64 |
Additions from purchases of PCD mortgage loans on real estate | ||
Additions (reductions) for mortgage loans on real estate for which credit losses were previously recognized | (19) | |
Balance as of end-of-year | 171 | 125 |
Residential [Member] | ||
Schedule of Investments [Line Items] | ||
Balance as of beginning-of-year | 17 | 2 |
Additions from provision for credit loss expense | 2 | 7 |
Additions from purchases of PCD mortgage loans on real estate | ||
Additions (reductions) for mortgage loans on real estate for which credit losses were previously recognized | (7) | |
Balance as of end-of-year | $ 12 | 35 |
Cumulative Effect, Period of Adoption, Adjustment [Member] | ||
Schedule of Investments [Line Items] | ||
Balance as of beginning-of-year | 87 | |
Cumulative Effect, Period of Adoption, Adjustment [Member] | Commercial [Member] | ||
Schedule of Investments [Line Items] | ||
Balance as of beginning-of-year | 61 | |
Cumulative Effect, Period of Adoption, Adjustment [Member] | Residential [Member] | ||
Schedule of Investments [Line Items] | ||
Balance as of beginning-of-year | $ 26 |
Investments (Credit Loss Expens
Investments (Credit Loss Expense Incurred) (Details) - Fixed Maturity AFS Securities [Member] - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items] | ||
Gross credit loss expense recognized in net income (loss) | $ (2) | $ (18) |
Net credit loss expense recognized in net income (loss) | (2) | (18) |
Corporate Bonds [Member] | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items] | ||
Gross credit loss expense recognized in net income (loss) | $ (2) | $ (18) |
Investments (Payables For Colla
Investments (Payables For Collateral On Investments) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
Carrying Value | ||
Collateral payable for derivative investments | $ 3,218 | $ 2,970 |
Securities pledged under securities lending agreements | 145 | 115 |
Investments pledged for Federal Home Loan Bank of Indianapolis ('FHLBI') | 4,230 | 3,130 |
Total payables for collateral on investments | 7,593 | 6,215 |
Fair Value | ||
Collateral payable for derivative investments | 3,218 | 2,970 |
Securities pledged under securities lending agreements | 140 | 112 |
Investments pledged for Federal Home Loan Bank of Indianapolis('FHLBI') | 6,819 | 5,049 |
Total payables for collateral on investments | $ 10,177 | $ 8,131 |
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 | ||
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 | ||
Percentage of the fair value of FHLBI securities obtained as collateral under securities pledged for FHLBI for AFS Securities | 105.00% | |
Percentage of the fair value of FHLBI securities obtained as collateral under securities pledged for FHLBI for mortgage loan | 155.00% |
Investments (Schedule Of Increa
Investments (Schedule Of Increase (Decrease) In Payables For Collateral On Investments) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Increase (decrease) in payables for collateral on investments | ||
Collateral payable for derivative investments | $ 248 | $ 2,561 |
Securities pledged under securities lending agreements | 30 | 47 |
Investments pledged for FHLBI | 1,100 | 750 |
Total increase (decrease) in payables for collateral on investments | $ 1,378 | $ 3,358 |
Investments (Schedule of Securi
Investments (Schedule of Securities Pledged by Contractual Maturity) (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities Lending | $ 115 | |
Total gross secured borrowings | $ 145 | 115 |
Corporate Bonds [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities Lending | 145 | 114 |
Foreign Government Bonds [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities Lending | 1 | |
Overnight and Continuous [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities Lending | 115 | |
Overnight and Continuous [Member] | Corporate Bonds [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities Lending | $ 145 | 114 |
Overnight and Continuous [Member] | Foreign Government Bonds [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities Lending | $ 1 |
Derivative Instruments (Narrati
Derivative Instruments (Narrative) (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Credit Derivatives [Line Items] | |||
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | $ 49,000,000 | ||
Cash flow hedge, reclassified to earnings, net | 0 | $ 0 | |
Non-performance Risk Adjustment | 0 | ||
Exposure Associated With Collateralization Events | 0 | $ 0 | |
Credit Default Swaps [Member] | |||
Credit Derivatives [Line Items] | |||
Collateral Requirement If Netting Agreements Not In Place | $ 2,000,000 | ||
Indexed Annuity [Member] | |||
Credit Derivatives [Line Items] | |||
Derivative term | 6 years |
Derivative Instruments (Outstan
Derivative Instruments (Outstanding Derivative Instruments With Off-Balance-Sheet Risks) (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Outstanding derivative instruments with off-balance-sheet risks | ||
Notional Amounts | $ 157,601 | |
Interest Rate Contracts [Member] | ||
Outstanding derivative instruments with off-balance-sheet risks | ||
Notional Amounts | 75,860 | |
Foreign Currency Contracts [Member] | ||
Outstanding derivative instruments with off-balance-sheet risks | ||
Notional Amounts | 3,659 | |
Equity Market Contracts [Member] | ||
Outstanding derivative instruments with off-balance-sheet risks | ||
Notional Amounts | 77,997 | |
Credit Contracts [Member] | ||
Outstanding derivative instruments with off-balance-sheet risks | ||
Notional Amounts | 85 | |
Total Derivative Instruments [Member] | ||
Outstanding derivative instruments with off-balance-sheet risks | ||
Notional Amounts | 157,601 | $ 214,672 |
Asset Fair Value | 7,972 | 6,390 |
Liability Fair Value | 8,634 | 7,217 |
Derivative investments [Member] | Interest Rate Contracts [Member] | Non-Qualifying Hedges [Member] | ||
Outstanding derivative instruments with off-balance-sheet risks | ||
Notional Amounts | 73,433 | 135,434 |
Asset Fair Value | 1,225 | 1,587 |
Liability Fair Value | 308 | 159 |
Derivative investments [Member] | Foreign Currency Contracts [Member] | Non-Qualifying Hedges [Member] | ||
Outstanding derivative instruments with off-balance-sheet risks | ||
Notional Amounts | 410 | 304 |
Asset Fair Value | 4 | 1 |
Liability Fair Value | 6 | 8 |
Derivative investments [Member] | Equity Market Contracts [Member] | Non-Qualifying Hedges [Member] | ||
Outstanding derivative instruments with off-balance-sheet risks | ||
Notional Amounts | 77,997 | 74,300 |
Asset Fair Value | 3,949 | 3,486 |
Liability Fair Value | 1,298 | 1,952 |
Derivative investments [Member] | Credit Contracts [Member] | Non-Qualifying Hedges [Member] | ||
Outstanding derivative instruments with off-balance-sheet risks | ||
Notional Amounts | 85 | 51 |
Derivative investments [Member] | Cash Flow Hedges [Member] | Qualifying Hedges [Member] | ||
Outstanding derivative instruments with off-balance-sheet risks | ||
Notional Amounts | 5,148 | 4,053 |
Asset Fair Value | 126 | 234 |
Liability Fair Value | 280 | 162 |
Derivative investments [Member] | Cash Flow Hedges [Member] | Interest Rate Contracts [Member] | Qualifying Hedges [Member] | ||
Outstanding derivative instruments with off-balance-sheet risks | ||
Notional Amounts | 1,899 | 964 |
Asset Fair Value | 7 | 87 |
Liability Fair Value | 133 | 11 |
Derivative investments [Member] | Cash Flow Hedges [Member] | Foreign Currency Contracts [Member] | Qualifying Hedges [Member] | ||
Outstanding derivative instruments with off-balance-sheet risks | ||
Notional Amounts | 3,249 | 3,089 |
Asset Fair Value | 119 | 147 |
Liability Fair Value | 147 | 151 |
Derivative investments [Member] | Fair Value Hedges [Member] | Interest Rate Contracts [Member] | Qualifying Hedges [Member] | ||
Outstanding derivative instruments with off-balance-sheet risks | ||
Notional Amounts | 528 | 530 |
Liability Fair Value | 187 | 271 |
Other Assets [Member] | LPR Ceded Derivative [Member] | Non-Qualifying Hedges [Member] | ||
Outstanding derivative instruments with off-balance-sheet risks | ||
Asset Fair Value | 268 | |
Other Assets [Member] | GLB Direct Embedded Derivatives [Member] | Non-Qualifying Hedges [Member] | ||
Outstanding derivative instruments with off-balance-sheet risks | ||
Asset Fair Value | 1,831 | 450 |
Other Liabilities [Member] | GLB Ceded Embedded Derivatives [Member] | Non-Qualifying Hedges [Member] | ||
Outstanding derivative instruments with off-balance-sheet risks | ||
Asset Fair Value | 42 | 82 |
Liability Fair Value | 1,869 | 531 |
Reinsurance Related Embedded Derivatives [Member] | Reinsurance Related [Member] | Non-Qualifying Hedges [Member] | ||
Outstanding derivative instruments with off-balance-sheet risks | ||
Liability Fair Value | 516 | 540 |
Future Contract Benefits [Member] | Indexed Annuity And IUL Contracts [Member] | Non-Qualifying Hedges [Member] | ||
Outstanding derivative instruments with off-balance-sheet risks | ||
Asset Fair Value | 527 | 550 |
Liability Fair Value | $ 4,170 | $ 3,594 |
Derivative Instruments (Maturit
Derivative Instruments (Maturity Of The Notional Amounts Of Derivative Financial Instruments) (Details) $ in Millions | Mar. 31, 2021USD ($) |
Maturity of the notional amounts of derivative financial instruments | |
Remaining Life Less Than 1 Year | $ 47,557 |
Remaining Life - 1 - 5 Years | 66,831 |
Remaining Life - 6 - 10 Years | 21,883 |
Remaining Life - 11 - 30 Years | 12,640 |
Remaining Life - Over 30 Years | 8,690 |
Remaining Life - Total Years | 157,601 |
Interest Rate Contracts [Member] | |
Maturity of the notional amounts of derivative financial instruments | |
Remaining Life Less Than 1 Year | 2,251 |
Remaining Life - 1 - 5 Years | 48,239 |
Remaining Life - 6 - 10 Years | 14,295 |
Remaining Life - 11 - 30 Years | 11,070 |
Remaining Life - Over 30 Years | 5 |
Remaining Life - Total Years | 75,860 |
Foreign Currency Contracts [Member] | |
Maturity of the notional amounts of derivative financial instruments | |
Remaining Life Less Than 1 Year | 354 |
Remaining Life - 1 - 5 Years | 400 |
Remaining Life - 6 - 10 Years | 1,249 |
Remaining Life - 11 - 30 Years | 1,559 |
Remaining Life - Over 30 Years | 97 |
Remaining Life - Total Years | 3,659 |
Equity Market Contracts [Member] | |
Maturity of the notional amounts of derivative financial instruments | |
Remaining Life Less Than 1 Year | 44,952 |
Remaining Life - 1 - 5 Years | 18,172 |
Remaining Life - 6 - 10 Years | 6,274 |
Remaining Life - 11 - 30 Years | 11 |
Remaining Life - Over 30 Years | 8,588 |
Remaining Life - Total Years | 77,997 |
Credit Contracts [Member] | |
Maturity of the notional amounts of derivative financial instruments | |
Remaining Life - 1 - 5 Years | 20 |
Remaining Life - 6 - 10 Years | 65 |
Remaining Life - Total Years | $ 85 |
Derivative Instruments (Cumulat
Derivative Instruments (Cumulative Basis Adjustments For Fair Value Hedges) (Details) - Fixed Maturity AFS Securities [Member] - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Derivatives, Fair Value [Line Items] | ||
Amortized cost of the hedged Assets / (Liabilities) | $ 738 | $ 824 |
Cumulative fair value hedging adjustments included in the amortized cost of the hedged Assets / (Liabilities) | $ 187 | $ 271 |
Derivative Instruments (Change
Derivative Instruments (Change In Unrealized Gain On Derivative Instruments In Accumulated OCI) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Change in our unrealized gain on derivative instruments in accumulated OCI | ||
Balance as of beginning-of-year | $ 9,021 | |
Income tax benefit (expense) | (99) | $ (99) |
Balance as of end-of-year | 5,840 | |
Unrealized Gain (Loss) on Derivative Instruments [Member] | ||
Change in our unrealized gain on derivative instruments in accumulated OCI | ||
Balance as of beginning-of-year | 42 | 181 |
Change in foreign currency exchange rate adjustment | 47 | 153 |
Change in DAC, VOBA, DSI and DFEL | 14 | (48) |
Income tax benefit (expense) | 43 | (140) |
Associated amortization of DAC, VOBA, DSI and DFEL | (1) | (1) |
Income tax benefit (expense) | (2) | (2) |
Balance as of end-of-year | (126) | 690 |
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 | (203) | 241 |
Unrealized Gain (Loss) on Derivative Instruments [Member] | Cash Flow Hedges [Member] | Interest Rate Contracts [Member] | Net Investment Income [Member] | ||
Change in our unrealized gain on derivative instruments in accumulated OCI | ||
Reclassification adjustment for gains (losses) included in net income (loss) | 1 | |
Unrealized Gain (Loss) on Derivative Instruments [Member] | Cash Flow Hedges [Member] | Foreign Currency Contracts [Member] | ||
Change in our unrealized gain on derivative instruments in accumulated OCI | ||
Unrealized holding gains (losses) arising during the period | (63) | 312 |
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) | 10 | 11 |
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) | $ 1 |
Derivative Instruments (Effects
Derivative Instruments (Effects Of Qualifying And Non-Qualifying Hedges) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
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 | $ 211 | $ (2) |
Net Investment Income [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total line items in which the effects of fair value or cash flow hedges are recorded | 1,447 | 1,318 |
Benefits Expense [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total line items in which the effects of fair value or cash flow hedges are recorded | 2,182 | 1,822 |
Interest Rate Contracts [Member] | Realized Gain (Loss) [Member] | Non-Qualifying Hedges [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Non-qualifying hedges gain (loss) | (1,159) | 2,150 |
Equity Market Contracts [Member] | Realized Gain (Loss) [Member] | Non-Qualifying Hedges [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Non-qualifying hedges gain (loss) | 1,242 | 1,070 |
Credit Contracts [Member] | Realized Gain (Loss) [Member] | Non-Qualifying Hedges [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Non-qualifying hedges gain (loss) | (4) | |
LPR Ceded Derivative [Member] | Benefits Expense [Member] | Non-Qualifying Hedges [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Non-qualifying hedges gain (loss) | 50 | |
GLB Embedded Derivative [Member] | Realized Gain (Loss) [Member] | Non-Qualifying Hedges [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Non-qualifying hedges gain (loss) | 3 | (7) |
Reinsurance Related [Member] | Realized Gain (Loss) [Member] | Non-Qualifying Hedges [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Non-qualifying hedges gain (loss) | 342 | 596 |
Indexed Annuity And IUL Contracts [Member] | Realized Gain (Loss) [Member] | Non-Qualifying Hedges [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Non-qualifying hedges gain (loss) | (594) | 1,028 |
Fair Value Hedges [Member] | Net Investment Income [Member] | Qualifying Hedges [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Hedged items | (84) | 127 |
Derivatives designated as hedging instruments | 84 | (127) |
Cash Flow Hedges [Member] | 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 | 1 | |
Cash Flow Hedges [Member] | 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 | (2) | 1 |
Cash Flow Hedges [Member] | 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 | $ 10 | $ 11 |
Derivative Instruments (Open Cr
Derivative Instruments (Open Credit Default Swap Liabilities) (Details) - Credit Default Swap Liabilities [Member] $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021USD ($)item | Dec. 31, 2020USD ($)security | |
Summary Of Credit Derivatives | ||
Maximum potential payout | $ 85 | $ 51 |
BBB+ [Member] | 12/20/2025 Maturity [Member] | ||
Summary Of Credit Derivatives | ||
Maturity | Dec. 20, 2025 | Dec. 20, 2025 |
Credit rating of underlying obligation | BBB+ | BBB+ |
Number of instruments | 1 | 1 |
Fair value | $ 1 | |
Maximum potential payout | $ 20 | $ 51 |
BBB+ [Member] | 6/20/2026 Maturity [Member] | ||
Summary Of Credit Derivatives | ||
Maturity | Jun. 20, 2026 | |
Credit rating of underlying obligation | BBB+ | |
Number of instruments | item | 1 | |
Fair value | $ 2 | |
Maximum potential payout | $ 65 |
Derivative Instruments (Collate
Derivative Instruments (Collateral Support Agreements) (Details) - Credit Default Swap Liabilities [Member] - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Credit risk related contingent features collateral | ||
Maximum potential payout | $ 85 | $ 51 |
Maximum collateral potentially required to post | $ 85 | $ 51 |
Derivative Instruments (Schedul
Derivative Instruments (Schedule Of Collateral Amounts With Rights To Reclaim Or Obligation To Return Cash) (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Credit Derivatives [Line Items] | ||
Collateral Posted by Counter-Party (Held by LNL) | $ 3,217 | $ 2,969 |
Collateral Posted by LNL (Held by Counter-Party) | (130) | (182) |
AA- [Member] | ||
Credit Derivatives [Line Items] | ||
Collateral Posted by Counter-Party (Held by LNL) | 1,453 | 1,232 |
Collateral Posted by LNL (Held by Counter-Party) | (11) | (7) |
A+ [Member] | ||
Credit Derivatives [Line Items] | ||
Collateral Posted by Counter-Party (Held by LNL) | 1,316 | 1,112 |
Collateral Posted by LNL (Held by Counter-Party) | (119) | (175) |
A [Member] | ||
Credit Derivatives [Line Items] | ||
Collateral Posted by Counter-Party (Held by LNL) | 60 | 53 |
Collateral Posted by LNL (Held by Counter-Party) | ||
A- [Member] | ||
Credit Derivatives [Line Items] | ||
Collateral Posted by Counter-Party (Held by LNL) | 388 | 572 |
Collateral Posted by LNL (Held by Counter-Party) |
Derivative Instruments (Sched_2
Derivative Instruments (Schedule Of Offsetting Assets And Liabilities) (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Financial Assets | ||
Derivative Instruments, Gross amount of recognized assets | $ 5,680 | $ 4,978 |
Derivative Instruments, Gross amounts offset | (1,848) | (1,869) |
Derivative Instruments, Net amount of assets | 3,832 | 3,109 |
Derivative Instruments, Cash collateral | (3,217) | (2,969) |
Derivative Instruments, Non-cash collateral | (372) | (56) |
Derivative Instruments, Net amount | 243 | 84 |
Embedded Derivative Instruments, Gross amount of recognized assets | 2,400 | 1,082 |
Embedded Derivative Instruments, Gross amounts offset | ||
Embedded Derivative Instruments, Net amount of assets | 2,400 | 1,082 |
Embedded Derivative Instruments, Cash collateral | ||
Embedded Derivative Instruments, Non-cash collateral | ||
Embedded Derivative Instruments, Net amount | 2,400 | 1,082 |
Total, Gross amount of recognized assets | 8,080 | 6,060 |
Total, Gross amounts offset | (1,848) | (1,869) |
Total, Net amount of assets | 6,232 | 4,191 |
Total, Cash collateral | (3,217) | (2,969) |
Total, Non-cash collateral | (372) | (56) |
Total, Net amount | 2,643 | 1,166 |
Financial Liabilities | ||
Derivative Instruments, Gross amount of recognized liabilities | 666 | 902 |
Derivative Instruments, Gross amounts offset | (4) | (330) |
Derivative Instruments, Net amount of liabilities | 662 | 572 |
Derivative Instruments, Cash collateral | (130) | (182) |
Derivative Instruments, Non-cash collateral | ||
Derivative Instruments, Net amount | 532 | 390 |
Embedded Derivative Instruments, Gross amount of recognized liabilities | 6,555 | 4,665 |
Embedded Derivative Instruments, Gross amounts offset | ||
Embedded Derivative Instruments, Net amount of liabilities | 6,555 | 4,665 |
Embedded Derivative Instruments, Cash collateral | ||
Embedded Derivative Instruments, Non-cash collateral | ||
Embedded Derivative Instruments, Net amount | 6,555 | 4,665 |
Total, Gross amount of recognized liabilities | 7,221 | 5,567 |
Total, Gross amounts offset | (4) | (330) |
Total, Net amount of liabilities | 7,217 | 5,237 |
Total, Cash collateral | (130) | (182) |
Total, Net amount | $ 7,087 | $ 5,055 |
Federal Income Taxes (Narrative
Federal Income Taxes (Narrative) (Details) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Federal Income Taxes [Abstract] | ||
Effective tax rate | 18.00% | 16.00% |
Federal statutory rate | 21.00% | 21.00% |
Reinsurance (Narrative) (Detail
Reinsurance (Narrative) (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Ceded Credit Risk [Line Items] | ||
Reinsurance, ACL | $ 191 | |
Athene Holding Ltd. [Member] | ||
Ceded Credit Risk [Line Items] | ||
Deposit assets | 5,600 | $ 5,800 |
Reserves associated with modified coinsurance reinsurance arrangements | 5,989 | $ 6,144 |
Letter of credit | 163 | |
Athene Holding Ltd. [Member] | Ceded Credit Risk, Secured [Member] | ||
Ceded Credit Risk [Line Items] | ||
Reserves associated with modified coinsurance reinsurance arrangements | $ 175 |
Reinsurance (Schedule Of Assets
Reinsurance (Schedule Of Assets In Support Of Reserves) (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Ceded Credit Risk [Line Items] | ||||
Fixed maturity AFS securities | $ 115,695 | $ 121,111 | ||
Trading securities | 4,308 | 4,442 | ||
Equity securities | 121 | 127 | ||
Mortgage loans on real estate | 17,159 | 16,681 | ||
Derivative investments | 3,453 | 3,109 | ||
Other investments | 3,024 | 3,025 | ||
Cash and invested cash | 1,086 | 1,462 | $ 5,266 | $ 1,879 |
Accrued investment income | 1,255 | 1,217 | ||
Other assets | 21,163 | 19,401 | ||
Athene Holding Ltd. [Member] | ||||
Ceded Credit Risk [Line Items] | ||||
Fixed maturity AFS securities | 1,357 | 1,531 | ||
Trading securities | 3,293 | 3,357 | ||
Equity securities | 20 | 17 | ||
Mortgage loans on real estate | 875 | 832 | ||
Derivative investments | 106 | 103 | ||
Other investments | 212 | 167 | ||
Cash and invested cash | 81 | 92 | ||
Accrued investment income | 39 | 42 | ||
Other assets | 6 | 3 | ||
Total | $ 5,989 | $ 6,144 |
Guaranteed Benefit Features (Na
Guaranteed Benefit Features (Narrative) (Details) | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Guaranteed Benefit Features [Abstract] | |||
Percent of permanent life insurance in force | 37.00% | 37.00% | |
Percent of permanent life insurance sales | 14.00% | 29.00% |
Guaranteed Benefit Features (In
Guaranteed Benefit Features (Information On Guaranteed Death Benefit Features) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Total account value | $ 136,726 | $ 134,738 |
Return of Net Deposits [Member] | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Total account value | 111,818 | 109,856 |
Net amount at risk | $ 77 | $ 72 |
Average attained age of contract holders | 66 years | 66 years |
Minimum Return [Member] | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Total account value | $ 99 | $ 100 |
Net amount at risk | $ 12 | $ 12 |
Average attained age of contract holders | 78 years | 78 years |
Guaranteed minimum return | 5.00% | 5.00% |
Anniversary Contract Value [Member] | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Total account value | $ 27,903 | $ 27,650 |
Net amount at risk | $ 410 | $ 390 |
Average attained age of contract holders | 72 years | 72 years |
Guaranteed Benefit Features (Su
Guaranteed Benefit Features (Summary Of Guaranteed Death Benefit Liabilities) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Guaranteed Benefit Features [Abstract] | ||
Balance as of beginning-of-year | $ 121 | $ 117 |
Changes in reserves | 8 | 106 |
Benefits paid | (5) | (8) |
Balance as of end-of-year | $ 124 | $ 215 |
Guaranteed Benefit Features (Ac
Guaranteed Benefit Features (Account Balances Of Variable Annuity Contracts With Guarantees Invested In Separate Accounts) (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Account Balances Of Variable Annuity Contracts With Guarantees Invested In Separate Accounts [Line Items] | ||
Total | $ 136,726 | $ 134,738 |
Percent of total variable annuity separate account values | 98.00% | 98.00% |
Domestic Equity [Member] | ||
Account Balances Of Variable Annuity Contracts With Guarantees Invested In Separate Accounts [Line Items] | ||
Total | $ 71,993 | $ 70,362 |
International Equity [Member] | ||
Account Balances Of Variable Annuity Contracts With Guarantees Invested In Separate Accounts [Line Items] | ||
Total | 20,813 | 20,855 |
Fixed Income [Member] | ||
Account Balances Of Variable Annuity Contracts With Guarantees Invested In Separate Accounts [Line Items] | ||
Total | $ 43,920 | $ 43,521 |
Liability For Unpaid Claims (Ch
Liability For Unpaid Claims (Changes In Liability For Unpaid Claims) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Liability For Unpaid Claims [Abstract] | ||
Balance as of beginning-of-year | $ 5,934 | $ 5,552 |
Reinsurance recoverable | 151 | 152 |
Net balance as of beginning-of-year | 5,783 | 5,400 |
Incurred related to: | ||
Current year | 1,025 | 885 |
Interest | 42 | 43 |
All other incurred | (101) | (65) |
Total incurred | 966 | 863 |
Paid related to: | ||
Current year | (302) | (240) |
Prior years | (601) | (518) |
Total paid | (903) | (758) |
Net balance as of end-of-period | 5,846 | 5,505 |
Reinsurance recoverable | 151 | 150 |
Balance as of end-of-period | $ 5,997 | $ 5,655 |
Contingencies and Commitments (
Contingencies and Commitments (Narrative) (Details) $ in Millions | Mar. 31, 2021USD ($) |
Pending Litigation [Member] | |
Loss Contingencies [Line Items] | |
Loss contingency, estimate | $ 120 |
Shares and Stockholder's Equi_3
Shares and Stockholder's Equity (Components And Changes In Accumulated OCI) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance as of beginning-of-year | $ 25,041 | |
Balance as of end-of-year | 22,210 | $ 19,997 |
Unrealized Gain (Loss) on AFS Securities [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance as of beginning-of-year | 8,993 | 5,637 |
Income tax benefit (expense) | 817 | 691 |
Reclassification adjustment for gains (losses) included in net income (loss) | 1 | (3) |
Associated amortization of DAC, VOBA, DSI, and DFEL | (4) | 27 |
Income tax benefit (expense) | 1 | (5) |
Balance as of end-of-year | 5,981 | 3,105 |
Unrealized Gain (Loss) on AFS Securities [Member] | Gains (Losses) Arising During The Year [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other comprehensive income (loss) before reclassifications and taxes | (7,077) | (4,357) |
Unrealized Gain (Loss) on AFS Securities [Member] | Change in Foreign Currency Exchange Rate Adjustment [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other comprehensive income (loss) before reclassifications and taxes | (41) | (150) |
Unrealized Gain (Loss) on AFS Securities [Member] | Change in Deferred Insurance Charges [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other comprehensive income (loss) before reclassifications and taxes | 3,287 | 1,263 |
Unrealized OTTI on AFS Securities [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance as of beginning-of-year | 40 | |
Unrealized Gain (Loss) on Derivative Instruments [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance as of beginning-of-year | 42 | 181 |
Income tax benefit (expense) | 43 | (140) |
Reclassification adjustment for gains (losses) included in net income (loss) | 9 | 12 |
Associated amortization of DAC, VOBA, DSI, and DFEL | (1) | (1) |
Income tax benefit (expense) | (2) | (2) |
Balance as of end-of-year | (126) | 690 |
Unrealized Gain (Loss) on Derivative Instruments [Member] | Gains (Losses) Arising During The Year [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other comprehensive income (loss) before reclassifications and taxes | (266) | 553 |
Unrealized Gain (Loss) on Derivative Instruments [Member] | Change in Foreign Currency Exchange Rate Adjustment [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other comprehensive income (loss) before reclassifications and taxes | 47 | 153 |
Unrealized Gain (Loss) on Derivative Instruments [Member] | Change in Deferred Insurance Charges [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other comprehensive income (loss) before reclassifications and taxes | 14 | (48) |
Funded Status of Employee Benefit Plans [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance as of beginning-of-year | (14) | (22) |
Reclassification adjustment for gains (losses) included in net income (loss) | (1) | |
Balance as of end-of-year | $ (15) | (22) |
Cumulative Effect, Period of Adoption, Adjustment [Member] | Unrealized Gain (Loss) on AFS Securities [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance as of beginning-of-year | 40 | |
Cumulative Effect, Period of Adoption, Adjustment [Member] | Unrealized OTTI on AFS Securities [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance as of beginning-of-year | $ (40) |
Shares and Stockholder's Equi_4
Shares and Stockholder's Equity (Schedule of Reclassifications Out Of AOCI) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net investment income | $ 1,447 | $ 1,318 |
Realized gain (loss) | 211 | (2) |
Commissions and other expenses | (1,171) | (1,053) |
Income (loss) from continuing operations before taxes | 563 | 601 |
Income tax benefit (expense) | (99) | (99) |
Net income (loss) | 464 | 502 |
Gross Reclassification [Member] | Unrealized Gain (Loss) on AFS Securities [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Realized gain (loss) | 1 | (3) |
Gross Reclassification [Member] | Unrealized Gain (Loss) on Derivative Instruments [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Total gross reclassifications | 9 | 12 |
Gross Reclassification [Member] | Unrealized Gain (Loss) on Derivative Instruments [Member] | Interest Rate Contracts [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net investment income | 1 | |
Gross Reclassification [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 | 10 | 11 |
Realized gain (loss) | (2) | 1 |
Associated Amortization of DAC, VOBA, DSI and DFEL [Member] | Unrealized Gain (Loss) on AFS Securities [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Realized gain (loss) | (4) | 27 |
Income (loss) from continuing operations before taxes | (3) | 24 |
Income tax benefit (expense) | 1 | (5) |
Net income (loss) | (2) | 19 |
Associated Amortization of DAC, VOBA, DSI and DFEL [Member] | Unrealized Gain (Loss) on Derivative Instruments [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Commissions and other expenses | (1) | (1) |
Income (loss) from continuing operations before taxes | 8 | 11 |
Income tax benefit (expense) | (2) | (2) |
Net income (loss) | $ 6 | $ 9 |
Realized Gain (Loss) (Schedule
Realized Gain (Loss) (Schedule Of Realized Gain (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Realized gain (loss) related to certain investments | ||
Realized gain (loss) on equity securities | $ 10 | $ (19) |
Credit loss benefit (expense) on mortgage loans on real estate | 24 | (70) |
Other gain (loss) on investments | 3 | (1) |
Associated amortization of DAC, VOBA, DSI and DFEL and changes in other contract holder funds | (5) | 26 |
Total realized gain (loss) related to certain financial assets | 32 | (85) |
Realized gain (loss) on the mark-to-market on certain instruments | 218 | 184 |
Indexed annuity and IUL contracts net derivatives results: | ||
Gross gain (loss) | 32 | (49) |
Associated amortization of DAC, VOBA, DSI, and DFEL | (13) | 15 |
GLB fees ceded to LNBAR and attributed fees: | ||
Gross gain (loss) | (50) | (59) |
Associated amortization of DAC, VOBA, DSI, and DFEL | (8) | (8) |
Total realized gain (loss) | 211 | (2) |
Mortgage Loans On Real Estate [Member] | ||
Realized gain (loss) related to certain investments | ||
Realized gain (loss) on the mark-to-market on certain instruments | 1 | 7 |
Fixed Maturity AFS Securities [Member] | ||
Realized gain (loss) related to certain investments | ||
AFS securities. Gross gains | 10 | 5 |
AFS securities. Gross losses | (9) | (8) |
Credit loss benefit (expense) | (2) | (18) |
Equity Securities [Member] | ||
Realized gain (loss) related to certain investments | ||
Realized gain (loss) on equity securities | $ 10 | $ (18) |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Narrative) (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Fair Value, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities measured at fair value | $ 0 | $ 0 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments (Carrying and Estimated Fair Values of Financial Instruments) (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Assets | ||
Fixed maturity AFS securities | $ 115,695 | $ 121,111 |
Trading securities | 4,308 | 4,442 |
Equity securities | 121 | 127 |
Mortgage loans on real estate | 17,159 | 16,681 |
Derivative investments | 3,453 | 3,109 |
Other investments | 3,024 | 3,025 |
Carrying Value [Member] | ||
Assets | ||
Trading securities | 4,308 | 4,442 |
Equity securities | 121 | 127 |
Mortgage loans on real estate | 17,159 | 16,681 |
Derivative investments | 3,453 | 3,109 |
Other investments | 3,014 | 3,015 |
Cash and invested cash | 1,086 | 1,462 |
Indexed annuity ceded embedded derivatives | 527 | 550 |
Separate account assets | 171,339 | 167,965 |
Future contract benefits: | ||
Indexed annuity and IUL contracts embedded derivatives | (4,170) | (3,594) |
Other contract holder funds: | ||
Remaining guaranteed interest and similar contracts | (1,860) | (1,854) |
Account values of certain investment contracts | (40,650) | (40,917) |
Short-term debt | (568) | (497) |
Long-term debt | (2,332) | (2,412) |
Reinsurance related embedded derivatives | (516) | (540) |
Other liabilities - derivative liabilities | (228) | (353) |
Fair Value [Member] | ||
Assets | ||
Trading securities | 4,308 | 4,442 |
Equity securities | 121 | 127 |
Mortgage loans on real estate | 17,978 | 18,129 |
Derivative investments | 3,453 | 3,109 |
Other investments | 3,014 | 3,015 |
Cash and invested cash | 1,086 | 1,462 |
Indexed annuity ceded embedded derivatives | 527 | 550 |
Separate account assets | 171,339 | 167,965 |
Future contract benefits: | ||
Indexed annuity and IUL contracts embedded derivatives | (4,170) | (3,594) |
Other contract holder funds: | ||
Remaining guaranteed interest and similar contracts | (1,860) | (1,854) |
Account values of certain investment contracts | (41,689) | (49,709) |
Short-term debt | (568) | (497) |
Long-term debt | (2,635) | (2,834) |
Reinsurance related embedded derivatives | (516) | (540) |
Other liabilities - derivative liabilities | (228) | (353) |
Fixed Maturity AFS Securities [Member] | Carrying Value [Member] | ||
Assets | ||
Fixed maturity AFS securities | 115,695 | 121,111 |
Fixed Maturity AFS Securities [Member] | Fair Value [Member] | ||
Assets | ||
Fixed maturity AFS securities | 115,695 | 121,111 |
GLB Direct Embedded Derivatives [Member] | Carrying Value [Member] | ||
Assets | ||
Other assets - GLB embedded derivatives | 1,831 | 450 |
GLB Direct Embedded Derivatives [Member] | Fair Value [Member] | ||
Assets | ||
Other assets - GLB embedded derivatives | 1,831 | 450 |
GLB Ceded Embedded Derivatives [Member] | Carrying Value [Member] | ||
Assets | ||
Other assets - GLB embedded derivatives | 42 | 82 |
Other contract holder funds: | ||
Other liabilities - GLB embedded derivatives | (1,869) | (531) |
GLB Ceded Embedded Derivatives [Member] | Fair Value [Member] | ||
Assets | ||
Other assets - GLB embedded derivatives | 42 | 82 |
Other contract holder funds: | ||
Other liabilities - GLB embedded derivatives | (1,869) | $ (531) |
LPR Ceded Derivative [Member] | Carrying Value [Member] | ||
Assets | ||
Other assets - GLB embedded derivatives | 268 | |
LPR Ceded Derivative [Member] | Fair Value [Member] | ||
Assets | ||
Other assets - GLB embedded derivatives | $ 268 |
Fair Value Of Financial Instr_5
Fair Value Of Financial Instruments (Schedule of Mortgage Loans With Election Of Fair Value Option) (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Fair Value of Financial Instruments [Abstract] | ||
Fair value | $ 874 | $ 832 |
Aggregate contractual principal as of end-of-period | 882 | $ 839 |
Loans with fair value option in non-accrual | 0 | |
Loans with fair value option, 90 days past due and still accruing | $ 0 |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments (Fair Value Of Assets And Liabilities On A Recurring Basis) (Details) - Fair Value, Recurring [Member] - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | $ 301,387 | $ 302,321 |
Liabilities measured at fair value | (8,634) | (7,217) |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 1,060 | 1,124 |
Significant Observable Inputs (Level 2) [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 283,151 | 286,492 |
Liabilities measured at fair value | (1,013) | (1,059) |
Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 17,176 | 14,705 |
Liabilities measured at fair value | (7,621) | (6,158) |
Corporate Bonds [Member] | Fixed Maturity AFS Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 95,504 | 101,424 |
Corporate Bonds [Member] | Significant Observable Inputs (Level 2) [Member] | Fixed Maturity AFS Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 87,732 | 93,663 |
Corporate Bonds [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fixed Maturity AFS Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 7,772 | 7,761 |
ABS [Member] | Fixed Maturity AFS Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 7,990 | 7,178 |
ABS [Member] | Significant Observable Inputs (Level 2) [Member] | Fixed Maturity AFS Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 7,302 | 6,608 |
ABS [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fixed Maturity AFS Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 688 | 570 |
U.S. Government Bonds [Member] | Fixed Maturity AFS Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 411 | 449 |
U.S. Government Bonds [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fixed Maturity AFS Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 400 | 438 |
U.S. Government Bonds [Member] | Significant Observable Inputs (Level 2) [Member] | Fixed Maturity AFS Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 6 | 6 |
U.S. Government Bonds [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fixed Maturity AFS Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 5 | 5 |
Foreign Government Bonds [Member] | Fixed Maturity AFS Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 481 | 465 |
Foreign Government Bonds [Member] | Significant Observable Inputs (Level 2) [Member] | Fixed Maturity AFS Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 415 | 391 |
Foreign Government Bonds [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fixed Maturity AFS Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 66 | 74 |
RMBS [Member] | Fixed Maturity AFS Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 2,843 | 2,838 |
RMBS [Member] | Significant Observable Inputs (Level 2) [Member] | Fixed Maturity AFS Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 2,842 | 2,836 |
RMBS [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fixed Maturity AFS Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 1 | 2 |
CMBS [Member] | Fixed Maturity AFS Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 1,507 | 1,495 |
CMBS [Member] | Significant Observable Inputs (Level 2) [Member] | Fixed Maturity AFS Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 1,506 | 1,494 |
CMBS [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fixed Maturity AFS Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 1 | 1 |
State And Municipal Bonds [Member] | Fixed Maturity AFS Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 6,374 | 6,662 |
State And Municipal Bonds [Member] | Significant Observable Inputs (Level 2) [Member] | Fixed Maturity AFS Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 6,374 | 6,662 |
Hybrid And Redeemable Preferred Securities [Member] | Fixed Maturity AFS Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 585 | 600 |
Hybrid And Redeemable Preferred Securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fixed Maturity AFS Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 53 | 53 |
Hybrid And Redeemable Preferred Securities [Member] | Significant Observable Inputs (Level 2) [Member] | Fixed Maturity AFS Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 448 | 444 |
Hybrid And Redeemable Preferred Securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fixed Maturity AFS Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 84 | 103 |
Trading Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 4,308 | 4,442 |
Trading Securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 5 | |
Trading Securities [Member] | Significant Observable Inputs (Level 2) [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 3,593 | 3,794 |
Trading Securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 715 | 643 |
Equity Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 121 | 127 |
Equity Securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 12 | 22 |
Equity Securities [Member] | Significant Observable Inputs (Level 2) [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 50 | 48 |
Equity Securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 59 | 57 |
Mortgage Loans On Real Estate [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 874 | 832 |
Mortgage Loans On Real Estate [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 874 | 832 |
Derivative Investments [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 5,304 | 5,308 |
Derivative Investments [Member] | Other Liabilities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Liabilities measured at fair value | (2,079) | |
Derivative Investments [Member] | Significant Observable Inputs (Level 2) [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 1,061 | 1,733 |
Derivative Investments [Member] | Significant Observable Inputs (Level 2) [Member] | Other Liabilities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Liabilities measured at fair value | (497) | |
Derivative Investments [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 4,243 | 3,575 |
Derivative Investments [Member] | Significant Unobservable Inputs (Level 3) [Member] | Other Liabilities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Liabilities measured at fair value | (1,582) | |
Invested Cash [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 1,086 | 1,462 |
Invested Cash [Member] | Significant Observable Inputs (Level 2) [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 1,086 | 1,462 |
GLB Direct Embedded Derivatives [Member] | Other Assets [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 1,831 | 450 |
GLB Direct Embedded Derivatives [Member] | Significant Unobservable Inputs (Level 3) [Member] | Other Assets [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 1,831 | 450 |
GLB Ceded Embedded Derivatives [Member] | Other Assets [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 42 | 82 |
GLB Ceded Embedded Derivatives [Member] | Other Liabilities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Liabilities measured at fair value | (1,869) | (531) |
GLB Ceded Embedded Derivatives [Member] | Significant Unobservable Inputs (Level 3) [Member] | Other Assets [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 42 | 82 |
GLB Ceded Embedded Derivatives [Member] | Significant Unobservable Inputs (Level 3) [Member] | Other Liabilities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Liabilities measured at fair value | (1,869) | (531) |
LPR Ceded Derivative [Member] | Other Assets [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 268 | |
LPR Ceded Derivative [Member] | Significant Unobservable Inputs (Level 3) [Member] | Other Assets [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 268 | |
Indexed Annuity And IUL Contracts [Member] | Future Contract Benefits [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Liabilities measured at fair value | (4,170) | (3,594) |
Indexed Annuity And IUL Contracts [Member] | Significant Unobservable Inputs (Level 3) [Member] | Future Contract Benefits [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Liabilities measured at fair value | (4,170) | (3,594) |
Separate Account Assets [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 171,331 | 167,957 |
Separate Account Assets [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 595 | 606 |
Separate Account Assets [Member] | Significant Observable Inputs (Level 2) [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 170,736 | 167,351 |
Reinsurance Related Embedded Derivatives [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Liabilities measured at fair value | (516) | (540) |
Reinsurance Related Embedded Derivatives [Member] | Significant Observable Inputs (Level 2) [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Liabilities measured at fair value | (516) | (540) |
Derivative Liabilities [Member] | Other Liabilities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Liabilities measured at fair value | (2,552) | |
Derivative Liabilities [Member] | Significant Observable Inputs (Level 2) [Member] | Other Liabilities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Liabilities measured at fair value | (519) | |
Derivative Liabilities [Member] | Significant Unobservable Inputs (Level 3) [Member] | Other Liabilities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Liabilities measured at fair value | (2,033) | |
Indexed Annuity Ceded Embedded Derivatives [Member] | Other Assets [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 527 | 550 |
Indexed Annuity Ceded Embedded Derivatives [Member] | Significant Unobservable Inputs (Level 3) [Member] | Other Assets [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | $ 527 | $ 550 |
Fair Value of Financial Instr_7
Fair Value of Financial Instruments (Fair Value Measured On A Recurring Basis Reconciliation) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Level 3 Unobservable Input Reconciliation | ||
Beginning Fair Value | $ 8,547 | $ 7,337 |
Items Included in Net Income | 617 | 1,986 |
Gains (Losses) in OCI and Other | (132) | (101) |
Issuances, Sales, Maturities, Settlements, Calls, Net | 282 | 49 |
Transfers Into or Out of Level 3, Net | 241 | (34) |
Ending Fair Value | 9,555 | 9,237 |
Corporate Bonds [Member] | Fixed Maturity AFS Securities [Member] | ||
Level 3 Unobservable Input Reconciliation | ||
Beginning Fair Value | 7,761 | 6,978 |
Items Included in Net Income | 1 | |
Gains (Losses) in OCI and Other | (121) | (367) |
Issuances, Sales, Maturities, Settlements, Calls, Net | 158 | 102 |
Transfers Into or Out of Level 3, Net | (27) | 42 |
Ending Fair Value | 7,772 | 6,755 |
U.S. Government Bonds [Member] | Fixed Maturity AFS Securities [Member] | ||
Level 3 Unobservable Input Reconciliation | ||
Beginning Fair Value | 5 | 5 |
Ending Fair Value | 5 | 5 |
Foreign Government Bonds [Member] | Fixed Maturity AFS Securities [Member] | ||
Level 3 Unobservable Input Reconciliation | ||
Beginning Fair Value | 74 | 90 |
Gains (Losses) in OCI and Other | (8) | (3) |
Ending Fair Value | 66 | 87 |
RMBS [Member] | Fixed Maturity AFS Securities [Member] | ||
Level 3 Unobservable Input Reconciliation | ||
Beginning Fair Value | 2 | 11 |
Transfers Into or Out of Level 3, Net | (1) | (10) |
Ending Fair Value | 1 | 1 |
CMBS [Member] | Fixed Maturity AFS Securities [Member] | ||
Level 3 Unobservable Input Reconciliation | ||
Beginning Fair Value | 1 | 1 |
Ending Fair Value | 1 | 1 |
ABS [Member] | Fixed Maturity AFS Securities [Member] | ||
Level 3 Unobservable Input Reconciliation | ||
Beginning Fair Value | 570 | 268 |
Gains (Losses) in OCI and Other | (7) | (4) |
Issuances, Sales, Maturities, Settlements, Calls, Net | 183 | 21 |
Transfers Into or Out of Level 3, Net | (58) | (89) |
Ending Fair Value | 688 | 196 |
Hybrid And Redeemable Preferred Securities [Member] | Fixed Maturity AFS Securities [Member] | ||
Level 3 Unobservable Input Reconciliation | ||
Beginning Fair Value | 103 | 78 |
Gains (Losses) in OCI and Other | 1 | (6) |
Issuances, Sales, Maturities, Settlements, Calls, Net | (20) | |
Ending Fair Value | 84 | 72 |
Trading Securities [Member] | ||
Level 3 Unobservable Input Reconciliation | ||
Beginning Fair Value | 643 | 666 |
Items Included in Net Income | (3) | (32) |
Issuances, Sales, Maturities, Settlements, Calls, Net | 66 | (6) |
Transfers Into or Out of Level 3, Net | 9 | 23 |
Ending Fair Value | 715 | 651 |
Equity Securities [Member] | ||
Level 3 Unobservable Input Reconciliation | ||
Beginning Fair Value | 57 | 30 |
Items Included in Net Income | 7 | |
Issuances, Sales, Maturities, Settlements, Calls, Net | (5) | |
Ending Fair Value | 59 | 30 |
Mortgage Loans On Real Estate [Member] | ||
Level 3 Unobservable Input Reconciliation | ||
Beginning Fair Value | 832 | |
Items Included in Net Income | 2 | |
Gains (Losses) in OCI and Other | 3 | |
Issuances, Sales, Maturities, Settlements, Calls, Net | 37 | |
Ending Fair Value | 874 | |
Derivative Investments [Member] | ||
Level 3 Unobservable Input Reconciliation | ||
Beginning Fair Value | 1,542 | 868 |
Items Included in Net Income | 1,251 | 997 |
Gains (Losses) in OCI and Other | 279 | |
Issuances, Sales, Maturities, Settlements, Calls, Net | (132) | (117) |
Ending Fair Value | 2,661 | 2,027 |
GLB Direct Embedded Derivatives [Member] | Other Assets [Member] | ||
Level 3 Unobservable Input Reconciliation | ||
Beginning Fair Value | 450 | 450 |
Items Included in Net Income | 1,381 | (450) |
Ending Fair Value | 1,831 | |
GLB Direct Embedded Derivatives [Member] | Other Liabilities [Member] | ||
Level 3 Unobservable Input Reconciliation | ||
Items Included in Net Income | (4,596) | |
Ending Fair Value | (4,596) | |
GLB Ceded Embedded Derivatives [Member] | Other Assets [Member] | ||
Level 3 Unobservable Input Reconciliation | ||
Beginning Fair Value | 82 | 60 |
Items Included in Net Income | (40) | 4,529 |
Ending Fair Value | 42 | 4,589 |
GLB Ceded Embedded Derivatives [Member] | Other Liabilities [Member] | ||
Level 3 Unobservable Input Reconciliation | ||
Beginning Fair Value | (531) | (510) |
Items Included in Net Income | (1,338) | 510 |
Ending Fair Value | (1,869) | |
Indexed Annuity Ceded Embedded Derivatives [Member] | Other Assets [Member] | ||
Level 3 Unobservable Input Reconciliation | ||
Beginning Fair Value | 550 | 927 |
Items Included in Net Income | 32 | (115) |
Issuances, Sales, Maturities, Settlements, Calls, Net | (55) | (13) |
Ending Fair Value | 527 | 799 |
LPR Ceded Derivative [Member] | Other Assets [Member] | ||
Level 3 Unobservable Input Reconciliation | ||
Items Included in Net Income | (50) | |
Transfers Into or Out of Level 3, Net | 318 | |
Ending Fair Value | 268 | |
Indexed Annuity And IUL Contracts [Member] | Future Contract Benefits [Member] | ||
Level 3 Unobservable Input Reconciliation | ||
Beginning Fair Value | (3,594) | (2,585) |
Items Included in Net Income | (626) | 1,143 |
Issuances, Sales, Maturities, Settlements, Calls, Net | 50 | 62 |
Ending Fair Value | $ (4,170) | $ (1,380) |
Fair Value of Financial Instr_8
Fair Value of Financial Instruments (Schedule Of Investment Holdings Movements) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | ||
Issuances | $ 736 | $ 503 |
Sales | (218) | (240) |
Maturities | (197) | (110) |
Settlements | (22) | (55) |
Calls | (17) | (49) |
Total | 282 | 49 |
Corporate Bonds [Member] | Fixed Maturity AFS Securities [Member] | ||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | ||
Issuances | 304 | 292 |
Sales | (28) | (92) |
Maturities | (15) | 2 |
Settlements | (86) | (51) |
Calls | (17) | (49) |
Total | 158 | 102 |
ABS [Member] | Fixed Maturity AFS Securities [Member] | ||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | ||
Issuances | 200 | 36 |
Settlements | (17) | (15) |
Total | 183 | 21 |
Hybrid And Redeemable Preferred Securities [Member] | Fixed Maturity AFS Securities [Member] | ||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | ||
Sales | (20) | |
Total | (20) | |
Mortgage Loans On Real Estate [Member] | ||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | ||
Issuances | 72 | |
Sales | (35) | |
Total | 37 | |
Trading Securities [Member] | ||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | ||
Issuances | 88 | 37 |
Sales | (3) | (25) |
Settlements | (19) | (18) |
Total | 66 | (6) |
Equity Securities [Member] | ||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | ||
Issuances | 3 | |
Sales | (8) | |
Total | (5) | |
Derivative Investments [Member] | ||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | ||
Issuances | 174 | 118 |
Sales | (124) | (123) |
Maturities | (182) | (112) |
Total | (132) | (117) |
Indexed Annuity Ceded Embedded Derivatives [Member] | Other Assets [Member] | ||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | ||
Issuances | 3 | 9 |
Settlements | (58) | (22) |
Total | (55) | (13) |
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 | (108) | 11 |
Settlements | 158 | 51 |
Total | $ 50 | $ 62 |
Fair Value of Financial Instr_9
Fair Value of Financial Instruments (Changes In Unrealized Gains (Losses) Within Level 3 Financial Instruments Carried At Fair Value And Still Held) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
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 | $ 1,057 | $ 834 |
Trading Securities [Member] | ||
Changes in unrealized gains (losses) within Level 3 financial instruments carried at fair value and still held | ||
Change in unrealized gains (losses) included in net income | (2) | |
Equity Securities [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 | 6 | |
Mortgage Loans On Real Estate [Member] | ||
Changes in unrealized gains (losses) within Level 3 financial instruments carried at fair value and still held | ||
Change in unrealized gains (losses) included in net income | 4 | |
Derivative Investments [Member] | ||
Changes in unrealized gains (losses) within Level 3 financial instruments carried at fair value and still held | ||
Change in unrealized gains (losses) included in net income | 1,053 | 895 |
Indexed Annuity And IUL Contracts [Member] | ||
Changes in unrealized gains (losses) within Level 3 financial instruments carried at fair value and still held | ||
Change in unrealized gains (losses) included in net income | 43 | (61) |
Other Assets [Member] | GLB Direct And Ceded [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 | 1,545 | (4,867) |
Other Assets [Member] | LPR Ceded Derivative [Member] | ||
Changes in unrealized gains (losses) within Level 3 financial instruments carried at fair value and still held | ||
Change in unrealized gains (losses) included in net income | (50) | |
Other Liabilities [Member] | GLB Direct And Ceded [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 | $ (1,542) | $ 4,867 |
Fair Value of Financial Inst_10
Fair Value of Financial Instruments (Changes in Unrealized Gains (Losses) Included in OCI) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Fair Value Assets And Liabilities Measured On Recurring Basis Level 3 Activity [Line Items] | ||
Unrealized gains (losses) included in OCI, net | $ (133) | $ (321) |
Fixed Maturity AFS Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis Level 3 Activity [Line Items] | ||
Unrealized gains (losses) included in OCI, net | 3 | |
Fixed Maturity AFS Securities [Member] | Corporate Bonds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis Level 3 Activity [Line Items] | ||
Unrealized gains (losses) included in OCI, net | (122) | (311) |
Fixed Maturity AFS Securities [Member] | Foreign Government Bonds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis Level 3 Activity [Line Items] | ||
Unrealized gains (losses) included in OCI, net | (8) | (2) |
Fixed Maturity AFS Securities [Member] | ABS [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis Level 3 Activity [Line Items] | ||
Unrealized gains (losses) included in OCI, net | (8) | (3) |
Fixed Maturity AFS Securities [Member] | Hybrid And Redeemable Preferred Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis Level 3 Activity [Line Items] | ||
Unrealized gains (losses) included in OCI, net | $ 2 | $ (5) |
Fair Value of Financial Inst_11
Fair Value of Financial Instruments (Components Of The Transfers In And Out Of Level 3) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | ||
Transfers Into Level 3 | $ 341 | $ 147 |
Transfers Out of Level 3 | (100) | (181) |
Total | 241 | (34) |
Corporate Bonds [Member] | Fixed Maturity AFS Securities [Member] | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | ||
Transfers Into Level 3 | 11 | 119 |
Transfers Out of Level 3 | (38) | (77) |
Total | (27) | 42 |
RMBS [Member] | Fixed Maturity AFS Securities [Member] | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | ||
Transfers Out of Level 3 | (1) | (10) |
Total | (1) | (10) |
ABS [Member] | Fixed Maturity AFS Securities [Member] | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | ||
Transfers Into Level 3 | 5 | |
Transfers Out of Level 3 | (58) | (94) |
Total | (58) | (89) |
Trading Securities [Member] | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | ||
Transfers Into Level 3 | 12 | 23 |
Transfers Out of Level 3 | (3) | |
Total | 9 | $ 23 |
LPR Ceded Derivative [Member] | Other Assets [Member] | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | ||
Transfers Into Level 3 | 318 | |
Total | $ 318 |
Fair Value of Financial Inst_12
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 | Mar. 31, 2021USD ($)item |
Corporate Bonds [Member] | Fixed Maturity AFS Securities [Member] | |
Assets Fair Value Disclosure [Abstract] | |
Assets Fair Value Disclosure | $ | $ 3,367 |
Corporate Bonds [Member] | Minimum [Member] | Fixed Maturity AFS Securities [Member] | Liquidity/Duration Adjustment [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Fixed maturity AFS and trading securities, measurement input | 0.003 |
Corporate Bonds [Member] | Maximum [Member] | Fixed Maturity AFS Securities [Member] | Liquidity/Duration Adjustment [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Fixed maturity AFS and trading securities, measurement input | 0.079 |
Corporate Bonds [Member] | Weighted Average [Member] | Fixed Maturity AFS Securities [Member] | Liquidity/Duration Adjustment [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Fixed maturity AFS and trading securities, measurement input | 0.015 |
Foreign Government Bonds [Member] | Fixed Maturity AFS Securities [Member] | |
Assets Fair Value Disclosure [Abstract] | |
Assets Fair Value Disclosure | $ | $ 29 |
Foreign Government Bonds [Member] | Minimum [Member] | Fixed Maturity AFS Securities [Member] | Liquidity/Duration Adjustment [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Fixed maturity AFS and trading securities, measurement input | 0.057 |
Foreign Government Bonds [Member] | Maximum [Member] | Fixed Maturity AFS Securities [Member] | Liquidity/Duration Adjustment [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Fixed maturity AFS and trading securities, measurement input | 0.057 |
Foreign Government Bonds [Member] | Weighted Average [Member] | Fixed Maturity AFS Securities [Member] | Liquidity/Duration Adjustment [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Fixed maturity AFS and trading securities, measurement input | 0.057 |
ABS [Member] | Fixed Maturity AFS Securities [Member] | |
Assets Fair Value Disclosure [Abstract] | |
Assets Fair Value Disclosure | $ | $ 20 |
ABS [Member] | Minimum [Member] | Fixed Maturity AFS Securities [Member] | Liquidity/Duration Adjustment [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Fixed maturity AFS and trading securities, measurement input | 0.030 |
ABS [Member] | Maximum [Member] | Fixed Maturity AFS Securities [Member] | Liquidity/Duration Adjustment [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Fixed maturity AFS and trading securities, measurement input | 0.030 |
ABS [Member] | Weighted Average [Member] | Fixed Maturity AFS Securities [Member] | Liquidity/Duration Adjustment [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Fixed maturity AFS and trading securities, measurement input | 0.030 |
Equity Securities [Member] | Fixed Maturity AFS Securities [Member] | |
Assets Fair Value Disclosure [Abstract] | |
Assets Fair Value Disclosure | $ | $ 20 |
Equity Securities [Member] | Minimum [Member] | Fixed Maturity AFS Securities [Member] | Liquidity/Duration Adjustment [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Equity securities, measurement input | 0.045 |
Equity Securities [Member] | Maximum [Member] | Fixed Maturity AFS Securities [Member] | Liquidity/Duration Adjustment [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Equity securities, measurement input | 0.062 |
Equity Securities [Member] | Weighted Average [Member] | Fixed Maturity AFS Securities [Member] | Liquidity/Duration Adjustment [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Equity securities, measurement input | 0.058 |
GLB Ceded Embedded Derivatives [Member] | Other Assets [Member] | |
Assets Fair Value Disclosure [Abstract] | |
Assets Fair Value Disclosure | $ | $ 1,873 |
GLB Ceded Embedded Derivatives [Member] | Minimum [Member] | Other Assets [Member] | Lapse Rate [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Derivative assets, measurement input | 0.01 |
GLB Ceded Embedded Derivatives [Member] | Maximum [Member] | Other Assets [Member] | Lapse Rate [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Derivative assets, measurement input | 0.30 |
GLB Ceded Embedded Derivatives [Member] | Weighted Average [Member] | Other Assets [Member] | Utilization Of Guaranteed Withdrawls [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Derivative assets, measurement input | 0.94 |
GLB Ceded Embedded Derivatives [Member] | Weighted Average [Member] | Other Assets [Member] | NPR [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Derivative assets, measurement input | 0.0095 |
GLB Ceded Embedded Derivatives [Member] | Weighted Average [Member] | Other Assets [Member] | Volatility [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Derivative assets, measurement input | 0.1471 |
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 | 0.0007 |
GLB Embedded Derivative [Member] | Minimum [Member] | Other Assets [Member] | Volatility [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Derivative assets, measurement input | 0.01 |
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 | 0.0143 |
GLB Embedded Derivative [Member] | Maximum [Member] | Other Assets [Member] | Volatility [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Derivative assets, measurement input | 0.28 |
LPR Ceded Derivative [Member] | Other Assets [Member] | |
Assets Fair Value Disclosure [Abstract] | |
Assets Fair Value Disclosure | $ | $ 268 |
LPR Ceded Derivative [Member] | Minimum [Member] | Other Assets [Member] | Lapse Rate [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Derivative assets, measurement input | 0 |
LPR Ceded Derivative [Member] | Minimum [Member] | Other Assets [Member] | NPR [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Derivative assets, measurement input | 0.0007 |
LPR Ceded Derivative [Member] | Maximum [Member] | Other Assets [Member] | Lapse Rate [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Derivative assets, measurement input | 0.0165 |
LPR Ceded Derivative [Member] | Maximum [Member] | Other Assets [Member] | NPR [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Derivative assets, measurement input | 0.0143 |
LPR Ceded Derivative [Member] | Weighted Average [Member] | Other Assets [Member] | NPR [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Derivative assets, measurement input | 0.0093 |
Indexed Annuity And IUL Contracts [Member] | Other Assets [Member] | |
Assets Fair Value Disclosure [Abstract] | |
Assets Fair Value Disclosure | $ | $ 527 |
Indexed Annuity And IUL Contracts [Member] | Minimum [Member] | Other Assets [Member] | Lapse Rate [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Derivative assets, measurement input | 0 |
Indexed Annuity And IUL Contracts [Member] | Maximum [Member] | Other Assets [Member] | Lapse Rate [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Derivative assets, measurement input | 0.09 |
Future Contract Benefits - Indexed Annuity and IUL Contracts Embedded Derivatives [Member] | Future Contract Benefits [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Liabilities measured at fair value | $ | $ (4,107) |
Future Contract Benefits - Indexed Annuity and IUL Contracts Embedded Derivatives [Member] | Minimum [Member] | Future Contract Benefits [Member] | Lapse Rate [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Derivative liability, measurement input | 0 |
Future Contract Benefits - Indexed Annuity and IUL Contracts Embedded Derivatives [Member] | Maximum [Member] | Future Contract Benefits [Member] | Lapse Rate [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Derivative liability, measurement input | 0.09 |
GLB Direct Embedded Derivatives [Member] | Other Liabilities [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Liabilities measured at fair value | $ | $ (1,869) |
GLB Direct Embedded Derivatives [Member] | Minimum [Member] | Other Liabilities [Member] | Lapse Rate [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Derivative liability, measurement input | 0.01 |
GLB Direct Embedded Derivatives [Member] | Minimum [Member] | Other Liabilities [Member] | Utilization Of Guaranteed Withdrawls [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Derivative liability, measurement input | 0.85 |
GLB Direct Embedded Derivatives [Member] | Minimum [Member] | Other Liabilities [Member] | Claims Utilization Factor [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Derivative liability, measurement input | 0.60 |
GLB Direct Embedded Derivatives [Member] | Minimum [Member] | Other Liabilities [Member] | Premiums Utilization Factor [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Derivative liability, measurement input | 0.80 |
GLB Direct Embedded Derivatives [Member] | Minimum [Member] | Other Liabilities [Member] | NPR [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Derivative liability, measurement input | 0.0007 |
GLB Direct Embedded Derivatives [Member] | Minimum [Member] | Other Liabilities [Member] | Volatility [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Derivative liability, measurement input | 0.01 |
GLB Direct Embedded Derivatives [Member] | Maximum [Member] | Other Liabilities [Member] | Lapse Rate [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Derivative liability, measurement input | 0.30 |
GLB Direct Embedded Derivatives [Member] | Maximum [Member] | Other Liabilities [Member] | Utilization Of Guaranteed Withdrawls [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Derivative liability, measurement input | 1 |
GLB Direct Embedded Derivatives [Member] | Maximum [Member] | Other Liabilities [Member] | Claims Utilization Factor [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Derivative liability, measurement input | 1 |
GLB Direct Embedded Derivatives [Member] | Maximum [Member] | Other Liabilities [Member] | Premiums Utilization Factor [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Derivative liability, measurement input | 1.15 |
GLB Direct Embedded Derivatives [Member] | Maximum [Member] | Other Liabilities [Member] | NPR [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Derivative liability, measurement input | 0.0143 |
GLB Direct Embedded Derivatives [Member] | Maximum [Member] | Other Liabilities [Member] | Volatility [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Derivative liability, measurement input | 0.28 |
GLB Direct Embedded Derivatives [Member] | Weighted Average [Member] | Other Liabilities [Member] | Utilization Of Guaranteed Withdrawls [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Derivative liability, measurement input | 0.94 |
GLB Direct Embedded Derivatives [Member] | Weighted Average [Member] | Other Liabilities [Member] | NPR [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Derivative liability, measurement input | 0.0095 |
GLB Direct Embedded Derivatives [Member] | Weighted Average [Member] | Other Liabilities [Member] | Volatility [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Derivative liability, measurement input | 0.1471 |
Segment Information (Reconcilia
Segment Information (Reconciliation Of Revenue From Segments To Consolidated) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Segment Reporting Information [Line Items] | ||
Total revenues | $ 4,689 | $ 4,241 |
Segment Reconciling Items [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 162 | (55) |
Annuities Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 1,097 | 1,021 |
Retirement Plan Services Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 323 | 293 |
Life Insurance Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 1,819 | 1,723 |
Group Protection Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 1,253 | 1,224 |
Other Operations [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenues | $ 35 | $ 35 |
Segment Information (Reconcil_2
Segment Information (Reconciliation Of Income (Loss) From Operations By Segment To Consolidated Net Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | ||
Net income (loss) | $ 464 | $ 502 |
Annuities Segment [Member] | ||
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | ||
Net income (loss) | 297 | 322 |
Retirement Plan Services Segment [Member] | ||
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | ||
Net income (loss) | 54 | 37 |
Life Insurance Segment [Member] | ||
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | ||
Net income (loss) | 42 | 190 |
Group Protection Segment [Member] | ||
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | ||
Net income (loss) | (26) | 40 |
Other Operations [Member] | ||
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | ||
Net income (loss) | (41) | (33) |
Excluded Realized Gain (Loss) [Member] | ||
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | ||
Net income (loss) | 127 | (44) |
Benefit Ratio Unlocking, After-Tax [Member] | ||
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | ||
Net income (loss) | $ 11 | (5) |
Acquisition And Integration Costs Related To Mergers And Acquisitions, After-Tax [Member] | ||
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | ||
Net income (loss) | $ (5) |