Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2023 | Nov. 03, 2023 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
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 | 1301 South Harrison 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 | Q3 | |
Entity Central Index Key | 0000726865 | |
Document Fiscal Year Focus | 2023 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Investments: | ||
Fixed maturity available-for-sale securities, at fair value (amortized cost: 2023 - $110,943; 2022 - $110,944; allowance for credit losses: 2023 - $21; 2022 - $21) | $ 100,387 | $ 99,465 |
Trading securities | 2,749 | 3,446 |
Equity securities | 383 | 427 |
Mortgage loans on real estate, net of allowance for credit losses (portion at fair value: 2023 - $315; 2022 - $487) | 18,661 | 18,211 |
Policy loans | 2,415 | 2,345 |
Derivative investments | 5,454 | 3,519 |
Other investments | 4,428 | 3,577 |
Total investments | 134,477 | 130,990 |
Cash and invested cash | 2,285 | 2,499 |
Deferred acquisition costs, value of business acquired and deferred sales inducements | 12,363 | 12,263 |
Reinsurance recoverables, net of allowance for credit losses | 20,317 | 21,264 |
Market risk benefit assets | 4,108 | 2,807 |
Accrued investment income | 1,377 | 1,234 |
Goodwill | 1,144 | 1,144 |
Other assets | 21,674 | 19,926 |
Separate account assets | 145,810 | 143,536 |
Total assets | 343,555 | 335,663 |
Liabilities | ||
Policyholder account balances | 116,777 | 113,972 |
Future contract benefits | 37,860 | 38,302 |
Market risk benefit liabilities | 1,385 | 2,078 |
Deferred front-end loads | 5,646 | 5,045 |
Payables for collateral on investments | 7,732 | 6,638 |
Short-term debt | 497 | 562 |
Long-term debt | 2,244 | 2,269 |
Other liabilities | 18,286 | 14,657 |
Separate account liabilities | 145,810 | 143,536 |
Total liabilities | 336,237 | 327,059 |
Contingencies and Commitments (See Note 15) | ||
Stockholder’s Equity | ||
Common stock - 10,000,000 shares authorized, issued and outstanding | 12,948 | 12,903 |
Retained earnings (deficit) | (520) | 1,414 |
Accumulated other comprehensive income (loss) | (5,110) | (5,713) |
Total stockholder’s equity | 7,318 | 8,604 |
Total liabilities and stockholder’s equity | $ 343,555 | $ 335,663 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Available-for-sale securities, at fair value: | ||
Fixed maturity available-for-sale securities (amortized cost) | $ 110,943 | $ 110,944 |
Fixed maturity, ACL | 21 | 21 |
Mortgage loans on real estate, fair value | $ 315 | $ 487 |
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 | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Revenues | ||||
Insurance premiums | $ 1,514 | $ 1,496 | $ 4,581 | $ 4,338 |
Fee income | 1,305 | 1,324 | 3,934 | 4,065 |
Net investment income | 1,466 | 1,241 | 4,351 | 3,931 |
Realized gain (loss) | (867) | 33 | (4,513) | 541 |
Amortization of deferred gain (loss) on business sold through reinsurance | 14 | 9 | 31 | 29 |
Other revenues | 145 | 162 | 457 | 451 |
Total revenues | 3,577 | 4,265 | 8,841 | 13,355 |
Expenses | ||||
Benefits | 1,895 | 2,094 | 5,766 | 6,118 |
Interest credited | 827 | 722 | 2,412 | 2,121 |
Market risk benefit (gain) loss | (1,014) | (74) | (1,182) | 755 |
Policyholder liability remeasurement (gain) loss | 157 | 2,370 | (70) | 2,496 |
Commissions and other expenses | 1,275 | 1,219 | 3,805 | 3,591 |
Interest and debt expense | 49 | 36 | 142 | 96 |
Spark program expense | 36 | 44 | 101 | 118 |
Impairment of intangibles | 634 | 634 | ||
Total expenses | 3,225 | 7,045 | 10,974 | 15,929 |
Income (loss) before taxes | 352 | (2,780) | (2,133) | (2,574) |
Federal income tax expense (benefit) | 37 | (488) | (564) | (500) |
Net income (loss) | 315 | (2,292) | (1,569) | (2,074) |
Other comprehensive income (loss), net of tax: | ||||
Unrealized investment gain (loss) | (2,807) | (4,909) | 1,088 | (18,727) |
Market risk benefit non-performance risk gain (loss) | (844) | (150) | (742) | 224 |
Policyholder liability discount rate remeasurement gain (loss) | 345 | 517 | 257 | 1,943 |
Total other comprehensive income (loss), net of tax | (3,306) | (4,542) | 603 | (16,560) |
Comprehensive income (loss) | $ (2,991) | $ (6,834) | $ (966) | $ (18,634) |
Consolidated Statements Of Stoc
Consolidated Statements Of Stockholder's Equity - USD ($) $ in Millions | Common Stock [Member] | Retained Earnings (Deficit) [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total |
Balance at Dec. 31, 2021 | $ 11,950 | $ 3,734 | $ 10,250 | |
Capital contribution from Lincoln National Corporation | 145 | |||
Stock compensation/issued for benefit plans | 19 | |||
Net income (loss) | (2,074) | $ (2,074) | ||
Dividends paid to Lincoln National Corporation | (580) | |||
Other comprehensive income (loss), net of tax | (16,560) | (16,560) | ||
Balance at Sep. 30, 2022 | 12,114 | 1,080 | (6,310) | 6,884 |
Balance at Jun. 30, 2022 | 12,020 | 3,647 | (1,768) | |
Capital contribution from Lincoln National Corporation | 80 | |||
Stock compensation/issued for benefit plans | 14 | |||
Net income (loss) | (2,292) | (2,292) | ||
Dividends paid to Lincoln National Corporation | (275) | |||
Other comprehensive income (loss), net of tax | (4,542) | (4,542) | ||
Balance at Sep. 30, 2022 | 12,114 | 1,080 | (6,310) | 6,884 |
Balance at Dec. 31, 2022 | 12,903 | 1,414 | (5,713) | 8,604 |
Capital contribution from Lincoln National Corporation | 5 | |||
Stock compensation/issued for benefit plans | 40 | |||
Net income (loss) | (1,569) | (1,569) | ||
Dividends paid to Lincoln National Corporation | (365) | |||
Other comprehensive income (loss), net of tax | 603 | 603 | ||
Balance at Sep. 30, 2023 | 12,948 | (520) | (5,110) | 7,318 |
Balance at Jun. 30, 2023 | 12,935 | (730) | (1,804) | |
Stock compensation/issued for benefit plans | 13 | |||
Net income (loss) | 315 | 315 | ||
Dividends paid to Lincoln National Corporation | (105) | |||
Other comprehensive income (loss), net of tax | (3,306) | (3,306) | ||
Balance at Sep. 30, 2023 | $ 12,948 | $ (520) | $ (5,110) | $ 7,318 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Cash Flows from Operating Activities | ||
Net income (loss) | $ (1,569) | $ (2,074) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Realized (gain) loss | 4,513 | (541) |
Market risk benefit (gain) loss | (1,182) | 755 |
Sales and maturities (purchases) of trading securities, net | 689 | 164 |
Amortization of deferred gain (loss) on business sold through reinsurance | (31) | (29) |
Impairment of intangibles | 634 | |
Change in: | ||
Deferred acquisition costs, value of business acquired, deferred sales inducements and deferred front-end loads | 501 | 370 |
Accrued investment income | (74) | (77) |
Insurance liabilities and reinsurance-related balances | (1,327) | 1,944 |
Accrued expenses | (67) | (379) |
Federal income tax accruals | (415) | (489) |
Cash management agreement | (622) | 2,803 |
Other | (145) | 419 |
Net cash provided by (used in) operating activities | 271 | 3,500 |
Cash Flows from Investing Activities | ||
Purchases of available-for-sale securities and equity securities | (8,151) | (11,961) |
Sales of available-for-sale securities and equity securities | 2,828 | 1,231 |
Maturities of available-for-sale securities | 3,975 | 4,339 |
Purchases of alternative investments | (416) | (453) |
Sales and repayments of alternative investments | 104 | 380 |
Issuance of mortgage loans on real estate | (1,375) | (1,924) |
Repayment and maturities of mortgage loans on real estate | 906 | 1,866 |
Repayment (issuance) of policy loans, net | (73) | 16 |
Net change in collateral on investments, certain derivatives and related settlements | (407) | (3,667) |
Other | (269) | (83) |
Net cash provided by (used in) investing activities | (2,878) | (10,256) |
Cash Flows from Financing Activities | ||
Capital contribution from Lincoln National Corporation | 5 | 145 |
Payment of long-term debt, including current maturities | (40) | |
Issuance (payment) of short-term debt | (65) | (313) |
Payment related to sale-leaseback transactions | (63) | (52) |
Proceeds from certain financing arrangements | 65 | 53 |
Payment related to certain financing arrangements | (35) | |
Deposits of fixed account balances | 11,117 | 11,832 |
Withdrawals of fixed account balances | (7,740) | (5,408) |
Transfers from (to) separate accounts, net | (519) | 101 |
Common stock issued for benefit plans | (7) | (21) |
Dividends paid to Lincoln National Corporation | (365) | (580) |
Other | (1) | |
Net cash provided by (used in) financing activities | 2,393 | 5,716 |
Net increase (decrease) in cash, invested cash and restricted cash | (214) | (1,040) |
Cash, invested cash and restricted cash as of beginning-of-year | 2,499 | 2,331 |
Cash, invested cash and restricted cash as of end-of-period | $ 2,285 | $ 1,291 |
Nature of Operations, Basis of
Nature of Operations, Basis of Presentation and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2023 | |
Nature of Operations, Basis of Presentation and Summary of Significant Accounting Policies [Abstract] | |
Nature of Operations, Basis of Presentation and Summary of Significant Accounting Policies | 1. Na ture of Operations, Basis of Presentation and Summary of Significant Accounting Policies Nature of Operations The Lincoln National Life Insurance Company (“LNL” or the “Company,” which also may be referred to as “we,” “our” or “us”), a wholly-owned subsidiary of Lincoln National Corporation (“LNC” or the “Parent Company”), is domiciled in the state of Indiana. We own 100% of the outstanding common stock of one insurance company subsidiary, Lincoln Life & Annuity Company of New York (“LLANY”). We also own several non-insurance companies, including Lincoln Financial Distributors, our wholesale distributor, and Lincoln Financial Advisors Corporation, part of LNC’s retail distributor, Lincoln Financial Network. LNL is licensed and sells its products throughout the U.S. and several U.S. territories. Through our business segments, we sell a wide range of wealth accumulation, wealth protection, group protection and retirement income products and solutions. These products primarily include fixed and variable annuities, fixed indexed annuities, indexed variable annuities, also referred to as registered index-linked annuities (“RILA”), universal life insurance (“UL”), variable universal life insurance (“VUL”), linked-benefit UL and VUL, indexed universal life insurance (“IUL”), term life insurance, group life, disability and dental and employer-sponsored retirement plans and services. For more information on our segments and the products and solutions we provide, see Note 17. 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 our Annual Report on Form 10-K for the year ended December 31, 2022, as amended by Amendment No. 1 thereto (“2022 Form 10-K”), as updated by our Current Report on Form 8-K filed with the SEC on May 23, 2023 (the “May 2023 Form 8-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 below. In the opinion of management, these statements include all normal recurring adjustments necessary for a fair presentation of the Company’s results. Interim results for the nine months ended September 30, 2023, are not necessarily indicative of the results that may be expected for the full year ending December 31, 2023. All material inter-company accounts and transactions have been eliminated in consolidation. Certain amounts reported in prior periods’ consolidated financial statements have been reclassified to conform to the presentation adopted in the current period. We present disaggregated disclosures in the Notes below for long-duration insurance balances, applying the level of aggregation by reportable segment as follows: Reportable Segment Level of Aggregation Annuities Variable Annuities Fixed Annuities Payout Annuities Life Insurance Traditional Life UL and Other Group Protection Group Protection Retirement Plan Services Retirement Plan Services The fixed annuities level of aggregation represents deferred fixed annuities. We have excluded amounts reported in Other Operations from our disaggregated disclosures that are attributable to the indemnity reinsurance agreements with Protective Life Insurance Company (“Protective”) and Swiss Re Life & Health America, Inc (“Swiss Re”) as these contracts are fully reinsured, run-off institutional pension business in the form of group annuity and the results of certain disability income business and not reflected in the results of the reportable segments listed above. Summary of Significant Accounting Policies Principles of Consolidation The accompanying consolidated financial statements include the accounts of LNL and all other entities in which we have a controlling financial interest and any variable interest entities (“VIEs”) in which we are the primary beneficiary. We use the equity method of accounting to recognize all of our investments in limited liability partnerships. All material inter-company accounts and transactions have been eliminated in consolidation. Our involvement with VIEs is primarily to invest in assets that allow us to gain exposure to a broadly diversified portfolio of asset classes. A VIE is an entity that does not have sufficient equity to finance its own activities without additional financial support or where investors lack certain characteristics of a controlling financial interest. We assess our contractual, ownership or other interests in a VIE to determine if our interest participates in the variability the VIE was designed to absorb and pass onto variable interest holders. We perform an ongoing qualitative assessment of our variable interests in VIEs to determine whether we have a controlling financial interest and would therefore be considered the primary beneficiary of the VIE. If we determine we are the primary beneficiary of a VIE, we consolidate the assets and liabilities of the VIE in the consolidated financial statements. Accounting Estimates and Assumptions The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions affecting the reported amounts of assets and liabilities and the disclosures of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses for the reporting period. In applying these estimates and assumptions, management makes subjective and complex judgments that frequently require assumptions about matters that are uncertain and inherently subject to change, including matters related to or impacted by the COVID-19 pandemic. Actual results could differ from these estimates and assumptions. Included among the material (or potentially material) reported amounts and disclosures that require use of estimates are: fair value of certain financial assets, derivatives, allowances for credit losses, deferred acquisition costs (“DAC”), value of business acquired (“VOBA”), deferred sales inducements (“DSI”), goodwill and other intangibles, market risk benefits (“MRBs”), future contract benefits, deferred front-end loads (“DFEL”), pension plans, stock-based incentive compensation, income taxes including the recoverability of our deferred tax assets, and the potential effects of resolving litigated matters. Business Combinations We use the acquisition method of accounting for all business combination transactions, and accordingly, recognize the fair values of assets acquired, liabilities assumed and any noncontrolling interests in the consolidated financial statements. The allocation of fair values may be subject to adjustment after the initial allocation for up to a one-year period as more information becomes available relative to the fair values as of the acquisition date. The consolidated financial statements include the results of operations of any acquired company since the acquisition date. Fair Value Measurement Our measurement of fair value is based on assumptions used by market participants in pricing the asset or liability, which may include inherent risk, restrictions on the sale or use of an asset or non-performance risk, which would include our own credit risk. Our estimate of an exchange price is the price in an orderly transaction between market participants to sell the asset or transfer the liability (“exit price”) in the principal market, or the most advantageous market in the absence of a principal market, for that asset or liability, as opposed to the price that would be paid to acquire the asset or receive a liability (“entry price”). Pursuant to the Fair Value Measurements and Disclosures Topic of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification TM (“ASC”), we categorize our financial instruments carried at fair value into a three-level fair value hierarchy, based on the priority of inputs to the respective valuation technique. The three-level hierarchy for fair value measurement is defined as follows: Level 1 – inputs to the valuation methodology are quoted prices available in active markets for identical investments as of the reporting date, except for large holdings subject to “blockage discounts” that are excluded; Level 2 – inputs to the valuation methodology are other than quoted prices in active markets, which are either directly or indirectly observable as of the reporting date, and fair value can be determined through the use of models or other valuation methodologies; and Level 3 – inputs to the valuation methodology are unobservable inputs in situations where there is little or no market activity for the asset or liability, and we make estimates and assumptions related to the pricing of the asset or liability, including assumptions regarding risk. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the investment. When a determination is made to classify an asset or liability within Level 3 of the fair value hierarchy, the determination is based upon the significance of the unobservable inputs to the overall fair value measurement. Because certain securities trade in less liquid or illiquid markets with limited or no pricing information, the determination of fair value for these securities is inherently more difficult. However, Level 3 fair value investments may include, in addition to the unobservable or Level 3 inputs, observable components, which are components that are actively quoted or can be validated to market-based sources. Fixed Maturity Available-For-Sale Securities – Fair Valuation Methodologies and Associated Inputs Securities classified as available-for-sale (“AFS”) consist of fixed maturity securities and are stated at fair value with unrealized gains and losses included within accumulated other comprehensive income (loss) (“AOCI”), net of the effect on future contract benefits and policyholder account balances that would result from the realization of the unrealized gains and losses. We measure the fair value of our securities classified as fixed maturity AFS based on assumptions used by market participants in pricing the security. The most appropriate valuation methodology is selected based on the specific characteristics of the fixed maturity security, and we consistently apply the valuation methodology to measure the security’s fair value. Our fair value measurement is based on a market approach that utilizes prices and other relevant information generated by market transactions involving identical or comparable securities. Sources of inputs to the market approach primarily include third-party pricing services, independent broker quotations or pricing matrices. We do not adjust prices received from third parties; however, we do analyze the third-party pricing services’ valuation methodologies and related inputs and perform additional evaluation to determine the appropriate level within the fair value hierarchy. The observable and unobservable inputs to our valuation methodologies are based on a set of standard inputs that we generally use to evaluate all of our fixed maturity AFS securities. Observable inputs include benchmark yields, reported trades, broker-dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data. In addition, market indicators, industry and economic events are monitored, and further market data is acquired if certain triggers are met. For certain security types, additional inputs may be used, or some of the inputs described above may not be applicable. For private placement securities, we use pricing matrices that utilize observable pricing inputs of similar public securities and Treasury yields as inputs to the fair value measurement. Depending on the type of security or the daily market activity, standard inputs may be prioritized differently or may not be available for all fixed maturity AFS securities on any given day. For broker-quoted only securities, non-binding quotes from market makers or broker-dealers are obtained from sources recognized as market participants. For securities trading in less liquid or illiquid markets with limited or no pricing information, we use unobservable inputs to measure fair value. The following summarizes our fair valuation methodologies and associated inputs, which are particular to the specified security type and are in addition to the defined standard inputs to our valuation methodologies for all of our fixed maturity AFS securities discussed above: Corporate bonds and U.S. government bonds – We also use Trade Reporting and Compliance Engine TM reported tables for our corporate bonds and vendor trading platform data for our U.S. government bonds. Mortgage- and asset-backed securities (“ABS”) – We also utilize additional inputs, which include new issues data, monthly payment information and monthly collateral performance, including prepayments, severity, delinquencies, step-down features and over collateralization features for each of our mortgage-backed securities (“MBS”), which include collateralized mortgage obligations and mortgage pass through securities backed by residential mortgages (“RMBS”), commercial mortgage-backed securities (“CMBS”) and collateralized loan obligations (“CLOs”). State and municipal bonds – We also use additional inputs that include information from the Municipal Securities Rule Making Board, as well as material event notices, new issue data, issuer financial statements and Municipal Market Data benchmark yields for our state and municipal bonds. Hybrid and redeemable preferred securities – We also utilize additional inputs of exchange prices (underlying and common stock of the same issuer) for our hybrid and redeemable preferred securities. In order to validate the pricing information and broker-dealer quotes, we employ, where possible, procedures that include comparisons with similar observable positions, comparisons with subsequent sales and observations of general market movements for those security classes. We have policies and procedures in place to review the process that is utilized by our third-party pricing service and the output that is provided to us by the pricing service. On a periodic basis, we test the pricing for a sample of securities to evaluate the inputs and assumptions used by the pricing service, and we perform a comparison of the pricing service output to an alternative pricing source. We also evaluate prices provided by our primary pricing service to ensure that they are not stale or unreasonable by reviewing the prices for unusual changes from period to period based on certain parameters or for lack of change from one period to the next. Fixed Maturity AFS Securities – Evaluation for Recovery of Amortized Cost We regularly review our fixed maturity AFS securities (also referred to as “debt securities”) for declines in fair value that we determine to be impairment-related, including those attributable to credit risk factors that may require a credit loss allowance. For our debt securities, we generally consider the following to determine whether our debt securities with unrealized losses are credit impaired: The estimated range and average period until recovery; The estimated range and average holding period to maturity; Remaining payment terms of the security; Current delinquencies and nonperforming assets of underlying collateral; Expected future default rates; Collateral value by vintage, geographic region, industry concentration or property type; Subordination levels or other credit enhancements as of the balance sheet date as compared to origination; and Contractual and regulatory cash obligations. For a debt security, if we intend to sell a security, or it is more likely than not we will be required to sell a debt security before recovery of its amortized cost basis and the fair value of the debt security is below amortized cost, we conclude that an impairment has occurred and the amortized cost is written down to current fair value, with a corresponding charge to realized gain (loss) on the Consolidated Statements of Comprehensive Income (Loss). If we do not intend to sell a debt security, or it is not more likely than not we will be required to sell a debt security before recovery of its amortized cost basis but the present value of the cash flows expected to be collected is less than the amortized cost of the debt security (referred to as the credit loss), we conclude that an impairment has occurred, and a credit loss allowance is recorded, with a corresponding charge to realized gain (loss) on the Consolidated Statements of Comprehensive Income (Loss). The remainder of the decline to fair value related to factors other than credit loss is recorded in other comprehensive income (“OCI”) to unrealized losses on fixed maturity AFS securities on the Consolidated Statements of Stockholder’s Equity, as this amount is considered a noncredit impairment. When assessing our intent to sell a debt security, or if it is more likely than not we will be required to sell a debt security before recovery of its cost basis, we evaluate facts and circumstances such as, but not limited to, decisions to reposition our security portfolio, sales of securities to meet cash flow needs and sales of securities to capitalize on favorable pricing. Management considers the following as part of the evaluation: The current economic environment and market conditions; Our business strategy and current business plans; The nature and type of security, including expected maturities and exposure to general credit, liquidity, market and interest rate risk; Our analysis of data from financial models and other internal and industry sources to evaluate the current effectiveness of our hedging and overall risk management strategies; The current and expected timing of contractual maturities of our assets and liabilities, expectations of prepayments on investments and expectations for surrenders and withdrawals of annuity contracts and life insurance policies; The capital risk limits approved by management; and Our current financial condition and liquidity demands. In order to determine the amount of the credit loss for a debt security, we calculate the recovery value by performing a discounted cash flow analysis based on the current cash flows and future cash flows we expect to recover. The discount rate is the effective interest rate implicit in the underlying debt security. The effective interest rate is the original yield, or the coupon if the debt security was previously impaired. See the discussion below for additional information on the methodology and significant inputs, by security type, that we use to determine the amount of a credit loss. To determine the recovery period of a debt security, we consider the facts and circumstances surrounding the underlying issuer including, but not limited to, the following: Historical and implied volatility of the security; The extent to which the fair value has been less than amortized cost; Adverse conditions specifically related to the security or to specific conditions in an industry or geographic area; Failure, if any, of the issuer of the security to make scheduled payments; and Recoveries or additional declines in fair value subsequent to the balance sheet date. In periods subsequent to the recognition of a credit loss impairment through a credit loss allowance, we continue to reassess the expected cash flows of the debt security at each subsequent measurement date as necessary. If the measurement of credit loss changes, we recognize a provision for (or reversal of) credit loss expense through realized gain (loss) on the Consolidated Statements of Comprehensive Income (Loss), limited by the amount that amortized cost exceeds fair value. Losses are charged against the allowance for credit losses when management believes the uncollectibility of a debt security is confirmed or when either of the criteria regarding intent or requirement to sell is met. Accrued interest on debt securities is written-off through net investment income on the Consolidated Statements of Comprehensive Income (Loss) when deemed uncollectible. To determine the recovery value of a corporate bond or CLO, we perform additional analysis related to the underlying issuer including, but not limited to, the following: Fundamentals of the issuer to determine what we would recover if they were to file bankruptcy versus the price at which the market is trading; Fundamentals of the industry in which the issuer operates; Earnings multiples for the given industry or sector of an industry that the underlying issuer operates within, divided by the outstanding debt to determine an expected recovery value of the security in the case of a liquidation; Expected cash flows of the issuer (e.g., whether the issuer has cash flows in excess of what is required to fund its operations); Expectations regarding defaults and recovery rates; Changes to the rating of the security by a rating agency; and Additional market information (e.g., if there has been a replacement of the corporate debt security). Each quarter, we review the cash flows for the MBS portfolio, including current credit enhancements and trends in the underlying collateral performance to determine whether or not they are sufficient to provide for the recovery of our amortized cost. To determine recovery value of a MBS, we perform additional analysis related to the underlying issuer including, but not limited to, the following: Discounted cash flow analysis based on the current cash flows and future cash flows we expect to recover; Level of borrower creditworthiness of the home equity loans or residential mortgages that back an RMBS or commercial mortgages that back a CMBS; Susceptibility to fair value fluctuations for changes in the interest rate environment; Susceptibility to reinvestment risks, in cases where market yields are lower than the securities’ book yield earned; Susceptibility to reinvestment risks, in cases where market yields are higher than the book yields earned on a security; Expectations of sale of such a security where market yields are higher than the book yields earned on a security; and Susceptibility to variability of prepayments. When evaluating MBS and mortgage-related ABS, we consider a number of pool-specific factors as well as market level factors when determining whether or not the impairment on the security requires a credit loss allowance. The most important factor is the performance of the underlying collateral in the security and the trends of that performance in the prior periods. We use this information about the collateral to forecast the timing and rate of mortgage loan defaults, including making projections for loans that are already delinquent and for those loans that are currently performing but may become delinquent in the future. Other factors used in this analysis include the credit characteristics of borrowers, geographic distribution of underlying loans and timing of liquidations by state. Once default rates and timing assumptions are determined, we then make assumptions regarding the severity of a default if it were to occur. Factors that impact the severity assumption include expectations for future home price appreciation or depreciation, loan size, first lien versus second lien, existence of loan level private mortgage insurance, type of occupancy and geographic distribution of loans. Once default and severity assumptions are determined for the security in question, cash flows for the underlying collateral are projected including expected defaults and prepayments. These cash flows on the collateral are then translated to cash flows on our tranche based on the cash flow waterfall of the entire capital security structure. If this analysis indicates the entire principal on a particular security will not be returned, the security is reviewed for a credit loss by comparing the expected cash flows to amortized cost. To the extent that the security has already been impaired through a credit loss allowance or was purchased at a discount, such that the amortized cost of the security is less than or equal to the present value of cash flows expected to be collected, no credit loss allowance is required. Otherwise, if the amortized cost of the security is greater than the present value of the cash flows expected to be collected, and the security was not purchased at a discount greater than the expected principal loss, then an impairment through a credit loss allowance is recognized. We further monitor the cash flows of all of our debt securities backed by mortgages on an ongoing basis. We also perform detailed analysis on all of our subprime, Alt-A, non-agency residential MBS and on a significant percentage of our debt securities backed by pools of commercial mortgages. The detailed analysis includes revising projected cash flows by updating the cash flows for actual cash received and applying assumptions with respect to expected defaults, foreclosures and recoveries in the future. These revised projected cash flows are then compared to the amount of credit enhancement (subordination) in the structure to determine whether the amortized cost of the security is recoverable. If it is not recoverable, we record an impairment through a credit loss allowance for the security. Trading Securities Trading securities consist of fixed maturity securities in designated portfolios, some of which support modified coinsurance and coinsurance with funds withheld reinsurance agreements. Investment results for the portfolios that support modified coinsurance and coinsurance with funds withheld reinsurance agreements, including gains and losses from sales, are passed directly to the reinsurers pursuant to contractual terms of the reinsurance agreements. Trading securities are carried at fair value, and changes in fair value and changes in the fair value of embedded derivative liabilities associated with the underlying reinsurance agreements are recorded in realized gain (loss) on the Consolidated Statements of Comprehensive Income (Loss) as they occur. Equity Securities Equity securities are carried at fair value, and changes in fair value are recorded in realized gain (loss) on the Consolidated Statements of Comprehensive Income (Loss) as they occur. Equity securities consist primarily of common stock of publicly-traded companies, privately placed securities and mutual fund shares. We measure the fair value of our equity securities based on assumptions used by market participants in pricing the security. The most appropriate valuation methodology is selected based on the specific characteristics of the equity security. Fair values of publicly-traded equity securities are determined using quoted prices in active markets for identical or comparable securities. When quoted prices are not available, we use valuation methodologies most appropriate for the specific asset. Fair values for private placement securities are determined using discounted cash flow, earnings multiple and other valuation models. The fair values of mutual fund shares that transact regularly are based on transaction prices of identical fund shares. Mortgage Loans on Real Estate Mortgage loans on real estate consist of commercial and residential mortgage loans and are generally carried at unpaid principal balances adjusted for amortization of premiums and accretion of discounts and are net of allowance for credit losses. We carry certain mortgage loans associated with modified coinsurance agreements at fair value where the fair value option has been elected. Interest income is accrued on the principal balance of the loan based on the loan’s contractual interest rate. Premiums and discounts are amortized using the effective yield method over the life of the loan. Interest income and amortization of premiums and discounts are reported in net investment income on the Consolidated Statements of Comprehensive Income (Loss) along with mortgage loan fees, which are recorded as they are incurred. Our policy for commercial mortgage loans is to report loans that are 60 or more days past due, which equates to two or more payments missed, as delinquent. Our policy for residential mortgage loans is to report loans that are 90 or more days past due, which equates to three or more payments missed, as delinquent. We do not accrue interest on loans 90 days past due, and any interest received on these loans is either applied to the principal or recorded in net investment income on the Consolidated Statements of Comprehensive Income (Loss) when received, depending on the assessment of the collectability of the loan. We resume accruing interest once a loan complies with all of its original terms or restructured terms. Mortgage loans deemed uncollectible are charged against the allowance for credit losses, and subsequent recoveries, if any, are likewise credited to the allowance for credit losses. Accrued interest on mortgage loans is written-off when deemed uncollectible. In connection with our recognition of an allowance for credit losses for mortgage loans on real estate, we perform a quantitative analysis using a probability of default/loss given default/exposure at default approach to estimate expected credit losses in our mortgage loan portfolio as well as unfunded commitments related to commercial mortgage loans, exclusive of certain mortgage loans held at fair value. Our model estimates expected credit losses over the contractual terms of the loans, which are the periods over which we are exposed to credit risk, adjusted for expected prepayments. Credit loss estimates are segmented by commercial mortgage loans, residential mortgage loans, and unfunded commitments related to commercial mortgage loans. The allowance for credit losses for pooled loans of similar risk (i.e., commercial and residential mortgage loans) is estimated using relevant historical credit loss information adjusted for current conditions and reasonable and supportable forecasts of future conditions. Historical credit loss experience provides the basis for the estimation of expected credit losses with adjustments for differences in current loan-specific risk characteristics, such as differences in underwriting standards, portfolio mix, delinquency level, or term lengths as well as adjustments for changes in environmental conditions, such as unemployment rates, property values, or other factors that management deems relevant. We apply probability weights to the positive, base and adverse scenarios we use. For periods beyond our reasonable and supportable forecast, we use implicit mean reversion over the remaining life of the recoverable, meaning our model will inherently revert to the baseline scenario as the baseline is representative of the historical average over a longer period of time. Loans are considered impaired when it is probable that, based upon current information and events, we will be unable to collect all amounts due under the contractual terms of the loan agreement. When we determine that a loan is impaired, a specific credit loss allowance is established for the excess carrying value of the loan over its estimated value. The loan’s estimated value is based on: the present value of expected future cash flows discounted at the loan’s effective interest rate; the loan’s observable market price; or the fair value of the loan’s collateral. Allowance for credit losses are maintained at a level we believe is adequate to absorb current expected lifetime credit losses. Our periodic evaluation of the adequacy of the allowance for credit losses is based on historical loss experience, known and inherent risks in the portfolio, adverse situations that may |
New Accounting Standards
New Accounting Standards | 9 Months Ended |
Sep. 30, 2023 | |
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 FASB and the impact of the adoption on the 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, 2024, with certain exceptions. The amendments are effective for contract modifications made between March 12, 2020, and December 31, 2024. March 12, 2020 through December 31, 2024 This standard may be elected and applied prospectively. We have elected practical expedients under this guidance to maintain hedge accounting for certain derivatives. This ASU has not had a material impact to our consolidated financial condition and results of operations to date. ASU 2018-12, Targeted Improvements to the Accounting for Long-Duration Contracts and related amendments See Note 3 for information about ASU 2018-12. January 1, 2023 We adopted this ASU effective January 1, 2023, with a transition date of January 1, 2021, using a modified retrospective approach, except for MRBs for which we applied a full retrospective transition approach. See Note 3 for transition disclosures related to the adoption of this ASU. |
Adoption of ASU 2018-12
Adoption of ASU 2018-12 | 9 Months Ended |
Sep. 30, 2023 | |
Adoption of ASU 2018-12 [Abstract] | |
Adoption of ASU 2018-12 | 3. Adoption of ASU 2018-12 On January 1, 2023, we adopted FASB ASU 2018-12, Targeted Improvements to the Accounting for Long-Duration Contracts and related amendments (“ASU 2018-12”) with a transition date of January 1, 2021. ASU 2018-12 updated accounting and reporting requirements for long-duration contracts and certain investment contracts issued by insurance entities. We adopted ASU 2018-12 under the modified retrospective approach, except for MRBs, which applied the full retrospective approach. Our consolidated financial statements are presented under the new guidance for reporting periods beginning January 1, 2021. Under ASU 2018-12, we include actual historical cash flows along with best estimate future cash flows to derive the net premium ratio when calculating the LFPB associated with our traditional and limited-payment long-duration contracts. We review and update, if necessary, assumptions used to measure future cash flows included in the net premium ratio at least annually. Historical cash flows included in the net premium ratio are updated for actual experience quarterly and as assumptions are updated. Changes in the measurement of our LFPB result from updates to cash flow assumptions and actual experience, which impacts are reported within policyholder remeasurement gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). We use an upper-medium grade (low credit risk) fixed-income instrument yield (single-A) discount rate when calculating the LFPB. This discount rate is updated quarterly at each reporting date with the impact recognized in OCI. ASU 2018-12 also eliminated loss recognition testing, premium deficiency testing and the provision for adverse deviation for LFPB. ASU 2018-12 introduced the category of MRBs, which are contracts or contract features that provide protection to the policyholder from other-than-nominal capital market risk and expose us to other-than-nominal capital market risk upon the occurrence of a specific event or circumstance, such as death, annuitization or periodic withdrawal. MRBs are required to be measured at fair value, with periodic changes in fair value reported within MRB gain (loss) on our Consolidated Statements of Comprehensive Income (Loss), except for periodic changes to instrument-specific credit risk related to direct policies, which are recognized in OCI. Changes in the fair value of ceded MRB assets and liabilities are also reported within MRB gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). ASU 2018-12 simplified the amortization model for DAC and DAC-like intangible balances, including VOBA, DSI and DFEL. Historically these balances were amortized in proportion to premium or over expected gross profits. They are now amortized on a constant-level basis over the expected term of the contract. Loss recognition testing and impairment testing are no longer applicable for DAC. ASU 2018-12 requires disaggregated rollforwards of the beginning of year to the end of the reporting period balances. We also disclose information about inputs, judgments, assumptions, methods, changes during the period and the effect of these changes on the measurement of applicable balances. In determining the appropriate level of aggregation, we considered our reportable segments, nature and risk characteristics of our products and level of aggregation we used in disclosures presented outside the financial statements. The following table presents the cumulative effect adjustments (in millions), after-tax and shown as increase (decrease), to the components of stockholder’s equity due to the adoption of ASU 2018-12 as of January 1, 2021, by primary accounting topic: Total Retained Stockholder’s Earnings AOCI Equity Shadow impacts: DAC, VOBA, DSI and DFEL $ - $ 2,271 $ 2,271 Additional liabilities for other insurance benefits - 1,197 1,197 LFPB and other (1) ( 121 ) ( 1,520 ) ( 1,641 ) MRBs (2) ( 1,699 ) 2,874 1,175 Total $ ( 1,820 ) $ 4,822 $ 3,002 (1) Includes impacts to reserves and ceded reserves reported within future contract benefits and reinsurance recoverables, respectively on the Consolidated Balance Sheets, excluding shadow impacts on additional liabilities for other insurance benefits. (2) Includes impacts related to MRB assets and MRB liabilities reported on the Consolidated Balance Sheets, and ceded MRBs reported within other assets on the Consolidated Balance Sheets. The following table summarizes the effect of the adoption of ASU 2018-12 as of January 1, 2021, (in millions) on the Consolidated Balance Sheets: Total Retained Stockholder’s Earnings AOCI Equity DAC, VOBA and DSI $ - $ 6,079 $ 6,079 Reinsurance recoverables 607 2,556 3,163 Other assets (1) 5,795 - 5,795 Future contract benefits ( 760 ) ( 2,966 ) ( 3,726 ) MRBs, net ( 7,956 ) 3,656 ( 4,300 ) DFEL - ( 3,190 ) ( 3,190 ) Other liabilities (2) 494 ( 1,313 ) ( 819 ) Total $ ( 1,820 ) $ 4,822 $ 3,002 (1) Consists primarily of ceded MRB adjustments. (2) Consists of state and federal tax adjustments. The following table summarizes the changes in DAC, VOBA and DSI, pre-tax, (in millions) due to the adoption of ASU 2018-12 and reconciles this balance to the Consolidated Balance Sheets: Impact from Balance Removal of Balance Pre-Adoption Shadow Post-Adoption December 31, Balances January 1, 2020 from AOCI 2021 DAC Variable Annuities $ 3,675 $ 52 $ 3,727 Fixed Annuities 264 215 479 Traditional Life 1,041 - 1,041 UL and Other 297 5,031 5,328 Group Protection 187 - 187 Retirement Plan Services 126 112 238 Total DAC 5,590 5,410 11,000 VOBA Fixed Annuities - 23 23 Traditional Life 67 - 67 UL and Other 167 630 797 Total VOBA 234 653 887 DSI (1) Variable Annuities 194 2 196 Fixed Annuities 17 13 30 UL and Other 35 - 35 Retirement Plan Services 13 1 14 Total DSI 259 16 275 Total DAC, VOBA and DSI $ 6,083 $ 6,079 $ 12,162 (1) Pre-adoption DSI balance was previously reported in other assets on the Consolidated Balance Sheets. The following table summarizes the changes in DFEL, pre-tax, (in millions) due to the adoption of ASU 2018-12 and reconciles this balance to the Consolidated Balance Sheets: Impact from Balance Removal of Balance Pre-Adoption Shadow Post-Adoption December 31, Balances January 1, 2020 from AOCI 2021 DFEL (1) Variable Annuities $ 319 $ 5 $ 324 UL and Other 77 3,185 3,262 Total DFEL $ 396 $ 3,190 $ 3,586 (1) Pre-adoption DFEL balance was previously reported in other contract holder funds on the Consolidated Balance Sheets. The following table summarizes the changes in future contract benefits, pre-tax, (in millions) due to the adoption of ASU 2018-12 and reconciles this balance to the Consolidated Balance Sheets: Impact from Single-A Balance Removal of Discount Cumulative Balance Pre-Adoption Shadow Rate Effect to Post-Adoption December 31, Balances Measurement Retained January 1, 2020 (1) from AOCI in AOCI Earnings 2021 LFPB Payout Annuities $ 2,313 $ ( 105 ) $ 415 $ 44 $ 2,667 Traditional Life 3,062 - 852 ( 2 ) 3,912 Liability for Future Claims Group Protection 5,422 - 517 - 5,939 Additional Liabilities for Other Insurance Benefits UL and Other 13,687 ( 1,515 ) - 92 12,264 Other Operations (2) 10,309 ( 80 ) 2,882 626 13,737 Other (3) 3,525 - - - 3,525 Total future contract benefits $ 38,318 $ ( 1,700 ) $ 4,666 $ 760 $ 42,044 (1) Balance pre-adoption excludes features that meet the definition of an MRB upon transition, including features that were previously accounted for as an additional liability. Also, balance pre-adoption reflects certain reclassifications of non-life contingent account balances from future contract benefits to policyholder account balances within the Consolidated Balance Sheets. (2) Represents future contract benefits reported in Other Operations primarily attributable to the indemnity reinsurance agreements with Protective ($ 6.3 billion and $ 7.4 billion as of December 31, 2020, and January 1, 2021, respectively) and Swiss Re ($ 1.8 billion and $ 3.3 billion as of December 31, 2020, and January 1, 2021, respectively). Includes LFPB and additional liabilities balances. (3) Represents other miscellaneous reserves outside the scope of ASU 2018-12. The following table summarizes the changes in reinsurance recoverables, pre-tax, (in millions) due to the adoption of ASU 2018-12 and reconciles this balance to the Consolidated Balance Sheets: Single-A Balance Discount Cumulative Balance Pre-Adoption Rate Effect to Post-Adoption December 31, Measurement Retained January 1, 2020 (1) in AOCI Earnings 2021 Reinsured LFPB Payout Annuities $ 5 $ - $ - $ 5 Traditional Life 372 88 - 460 Reinsured Liability for Future Claims Group Protection 148 14 - 162 Reinsured Additional Liabilities for Other Insurance Benefits UL and Other 922 - ( 3 ) 919 Reinsured Other Operations (2) 14,757 2,454 610 17,821 Reinsured Other (3) 1,346 - - 1,346 Total reinsurance recoverables $ 17,550 $ 2,556 $ 607 $ 20,713 (1) Balance pre-adoption excludes features that meet the definition of a ceded MRB upon transition, including features that were previously accounted for as reinsured additional liabilities. (2) Represents reinsurance recoverables reported in Other Operations primarily attributable to the indemnity reinsurance agreements with Protective ($ 12.0 billion and $ 13.2 billion as of December 31, 2020, and January 1, 2021, respectively) and Swiss Re ($ 1.7 billion and $ 3.2 billion as of December 31, 2020, and January 1, 2021, respectively). Includes reinsured LFPB and reinsured additional liabilities balances. (3) Represents other miscellaneous reinsurance recoverables outside the scope of ASU 2018-12. The following table summarizes the changes in the net liability position of MRBs, pre-tax, (in millions) due to the adoption of ASU 2018-12 and reconciles this balance to the Consolidated Balance Sheets: Balance Cumulative Cumulative Balance Pre-Adoption Effect of Effect to Post-Adoption December 31, Credit Risk Retained January 1, 2020 (1) to AOCI Earnings 2021 MRBs, Net Variable Annuities $ 831 $ ( 3,592 ) $ 7,968 $ 5,207 Fixed Annuities 192 ( 52 ) ( 22 ) 118 Retirement Plan Services 11 ( 12 ) 10 9 Total MRBs, net $ 1,034 $ ( 3,656 ) $ 7,956 $ 5,334 (1) Balance pre-adoption includes all features that meet the definition of an MRB upon transition, including features that were previously accounted for as additional liabilities or embedded derivatives. The following table summarizes the changes in the net asset position of ceded MRBs, pre-tax, (in millions) due to the adoption of ASU 2018-12, reported in other assets on the Consolidated Balance Sheets: Balance Cumulative Balance Pre-Adoption Effect to Post-Adoption December 31, Retained January 1, 2020 (1) Earnings 2021 Ceded MRBs, Net Variable Annuities $ 828 $ 5,700 $ 6,528 Retirement Plan Services 1 10 11 Total ceded MRBs, net $ 829 $ 5,710 $ 6,539 (1) Balance pre-adoption includes all features that meet the definition of a ceded MRB upon transition, including features that were previously accounted for as reinsured additional liabilities or embedded derivatives. The following summarizes the effect of the adoption of ASU 2018-12 (in millions) on certain financial statement line items within the previously reported Consolidated Balance Sheets: As of December 31, 2022 Adoption As of New Previously Accounting As Reported (1) Standard Adjusted Deferred acquisition costs, value of business acquired and deferred sales inducements (2) $ 13,873 $ ( 1,610 ) $ 12,263 Reinsurance recoverables, net of allowance for credit losses 23,910 ( 2,646 ) 21,264 Market risk benefit assets - 2,807 2,807 Other assets (2) 21,080 ( 1,154 ) 19,926 Total assets 338,266 ( 2,603 ) 335,663 Future contract benefits (2) 41,203 ( 2,901 ) 38,302 Market risk benefit liabilities - 2,078 2,078 Deferred front-end loads (2) 5,695 ( 650 ) 5,045 Other liabilities (2) 16,125 ( 1,468 ) 14,657 Total liabilities 330,000 ( 2,941 ) 327,059 Retained earnings 2,436 ( 1,022 ) 1,414 Accumulated other comprehensive income (loss) ( 7,073 ) 1,360 ( 5,713 ) Total stockholder’s equity 8,266 338 8,604 (1) The amounts as previously reported were derived from Note 1 in our 2022 Form 10-K, as updated by the May 2023 Form 8-K. (2) Certain amounts have been reclassified to conform to the presentation adopted in the current period. The following summarizes the effect of the adoption of ASU 2018-12 (in millions) on certain financial statement line items within the previously reported Consolidated Statements of Comprehensive Income (Loss): For the Three Months Ended September 30, 2022 Adoption As of New Previously Accounting As Reported (1) Standard Adjusted Fee income $ 1,438 $ ( 114 ) $ 1,324 Realized gain (loss) 11 22 33 Total revenues 4,357 ( 92 ) 4,265 Benefits 4,498 ( 2,404 ) 2,094 Interest credited 717 5 722 Market risk benefit (gain) loss - ( 74 ) ( 74 ) Policyholder liability remeasurement (gain) loss - 2,370 2,370 Commissions and other expenses 1,205 14 1,219 Total expenses 7,134 ( 89 ) 7,045 Income (loss) before taxes ( 2,777 ) ( 3 ) ( 2,780 ) Net income (loss) ( 2,289 ) ( 3 ) ( 2,292 ) Unrealized investment gain (loss) ( 4,140 ) ( 769 ) ( 4,909 ) Market risk benefit non-performance risk gain (loss) - ( 150 ) ( 150 ) Policyholder liability discount rate remeasurement gain (loss) - 517 517 Total other comprehensive income (loss), net of tax ( 4,140 ) ( 402 ) ( 4,542 ) Comprehensive income (loss) ( 6,429 ) ( 405 ) ( 6,834 ) For the Nine Months Ended September 30, 2022 Adoption As of New Previously Accounting As Reported (1) Standard Adjusted Fee income $ 4,384 $ ( 319 ) $ 4,065 Realized gain (loss) 338 203 541 Total revenues 13,471 ( 116 ) 13,355 Benefits 8,748 ( 2,630 ) 6,118 Interest credited 2,109 12 2,121 Market risk benefit (gain) loss - 755 755 Policyholder liability remeasurement (gain) loss - 2,496 2,496 Commissions and other expenses 3,473 118 3,591 Total expenses 15,179 750 15,929 Income (loss) before taxes ( 1,708 ) ( 866 ) ( 2,574 ) Federal income tax expense (benefit) ( 320 ) ( 180 ) ( 500 ) Net income (loss) ( 1,388 ) ( 686 ) ( 2,074 ) Unrealized investment gain (loss) ( 14,577 ) ( 4,150 ) ( 18,727 ) Market risk benefit non-performance risk gain (loss) - 224 224 Policyholder liability discount rate remeasurement gain (loss) - 1,943 1,943 Total other comprehensive income (loss), net of tax ( 14,577 ) ( 1,983 ) ( 16,560 ) Comprehensive income (loss) ( 15,965 ) ( 2,669 ) ( 18,634 ) (1) The amounts as previously reported were derived from Note 24 in our 2022 Form 10-K. The following summarizes the effect of the adoption of ASU 2018-12 (in millions) on certain financial statement line items within the previously reported Consolidated Statements of Stockholder’s Equity: For the Three Months Ended September 30, 2022 Adoption As of New Previously Accounting As Reported (1) Standard Adjusted Retained earnings balance as of beginning-of-period $ 4,962 $ ( 1,315 ) $ 3,647 Net income (loss) ( 2,289 ) ( 3 ) ( 2,292 ) Retained earnings balance as of end-of-period 2,398 ( 1,318 ) 1,080 Accumulated other comprehensive income (loss) balance as of beginning-of-period ( 3,893 ) 2,125 ( 1,768 ) Other comprehensive income (loss), net of tax ( 4,140 ) ( 402 ) ( 4,542 ) Accumulated other comprehensive income (loss) balance as of end-of-period ( 8,033 ) 1,723 ( 6,310 ) Total stockholder’s equity as of end-of-period 6,479 405 6,884 For the Nine Months Ended September 30, 2022 Adoption As of New Previously Accounting As Reported (1) Standard Adjusted Retained earnings balance as of beginning-of-year $ 4,366 $ ( 632 ) $ 3,734 Net income (loss) ( 1,388 ) ( 686 ) ( 2,074 ) Retained earnings balance as of end-of-period 2,398 ( 1,318 ) 1,080 Accumulated other comprehensive income (loss) balance as of beginning-of-year 6,544 3,706 10,250 Other comprehensive income (loss), net of tax ( 14,577 ) ( 1,983 ) ( 16,560 ) Accumulated other comprehensive income (loss) balance as of end-of-period ( 8,033 ) 1,723 ( 6,310 ) Total stockholder’s equity as of end-of-period 6,479 405 6,884 (1) The amounts as previously reported were derived from Note 24 in our 2022 Form 10-K. The following summarizes the effect of the adoption of ASU 2018-12 (in millions) on certain financial statement line items within the previously reported Consolidated State ments of Cash Flows: For the Nine Months Ended September 30, 2022 Adoption As of New Previously Accounting As Reported (1) Standard Adjusted Net income (loss) $ ( 1,388 ) $ ( 686 ) $ ( 2,074 ) Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Realized (gain) loss ( 338 ) ( 203 ) ( 541 ) Market risk benefit (gain) loss - 755 755 Change in: Deferred acquisition costs, value of business acquired, deferred sales inducements and deferred front-end loads 3 367 370 Insurance liabilities and reinsurance-related balances (2) 2,016 ( 72 ) 1,944 Accrued expenses ( 375 ) ( 4 ) ( 379 ) Federal income tax accruals ( 308 ) ( 181 ) ( 489 ) Other (2) 395 24 419 (1) The amounts as previously reported were derived from Note 24 in our 2022 Form 10-K . (2) Certain amounts have been reclassified to conform to the presentation adopted in the current period. |
Investments
Investments | 9 Months Ended |
Sep. 30, 2023 | |
Investments [Abstract] | |
Investments | 4. In vestments Fixed Maturity AFS Securities The amortized cost, gross unrealized gains and losses, allowance for credit losses and fair value of fixed maturity AFS securities (in millions) were as follows: As of September 30, 2023 Allowance Amortized Gross Unrealized for Credit Fair Cost Gains Losses Losses Value Fixed maturity AFS securities: Corporate bonds $ 87,724 $ 433 $ 9,387 $ 9 $ 78,761 U.S. government bonds 417 2 47 - 372 State and municipal bonds 4,950 67 346 - 4,671 Foreign government bonds 321 10 61 - 270 RMBS 2,067 18 210 6 1,869 CMBS 1,937 - 236 - 1,701 ABS 13,177 36 820 5 12,388 Hybrid and redeemable preferred securities 350 24 18 1 355 Total fixed maturity AFS securities $ 110,943 $ 590 $ 11,125 $ 21 $ 100,387 As of December 31, 2022 Allowance Amortized Gross Unrealized for Credit Fair Cost Gains Losses Losses Value Fixed maturity AFS securities: Corporate bonds $ 88,950 $ 763 $ 10,538 $ 9 $ 79,166 U.S. government bonds 377 5 31 - 351 State and municipal bonds 5,198 170 483 - 4,885 Foreign government bonds 339 17 45 - 311 RMBS 2,025 21 203 7 1,836 CMBS 1,908 3 244 - 1,667 ABS 11,791 37 925 4 10,899 Hybrid and redeemable preferred securities 356 25 30 1 350 Total fixed maturity AFS securities $ 110,944 $ 1,041 $ 12,499 $ 21 $ 99,465 The amortized cost and fair value of fixed maturity AFS securities by contractual maturities (in millions) as of September 30, 2023, were as follows: Amortized Fair Cost Value Due in one year or less $ 3,950 $ 3,907 Due after one year through five years 18,900 17,925 Due after five years through ten years 18,279 16,548 Due after ten years 52,633 46,049 Subtotal 93,762 84,429 Structured securities (RMBS, CMBS, ABS) 17,181 15,958 Total fixed maturity AFS securities $ 110,943 $ 100,387 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 September 30, 2023 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 $ 19,506 $ 1,136 $ 47,089 $ 8,251 $ 66,595 $ 9,387 U.S. government bonds 70 5 221 42 291 47 State and municipal bonds 1,312 27 1,607 319 2,919 346 Foreign government bonds 71 6 120 55 191 61 RMBS 602 31 1,082 179 1,684 210 CMBS 608 18 1,077 218 1,685 236 ABS 2,375 67 7,739 753 10,114 820 Hybrid and redeemable preferred securities 59 4 116 14 175 18 Total fixed maturity AFS securities $ 24,603 $ 1,294 $ 59,051 $ 9,831 $ 83,654 $ 11,125 Total number of fixed maturity AFS securities in an unrealized loss position 8,537 As of December 31, 2022 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 $ 57,656 $ 8,684 $ 6,867 $ 1,854 $ 64,523 $ 10,538 U.S. government bonds 236 25 27 6 263 31 State and municipal bonds 1,850 414 227 69 2,077 483 Foreign government bonds 122 18 58 27 180 45 RMBS 1,337 160 191 43 1,528 203 CMBS 1,224 156 312 88 1,536 244 ABS 6,712 551 3,325 374 10,037 925 Hybrid and redeemable preferred securities 61 5 98 25 159 30 Total fixed maturity AFS securities $ 69,198 $ 10,013 $ 11,105 $ 2,486 $ 80,303 $ 12,499 Total number of fixed maturity AFS securities in an unrealized loss position 8,106 (1) As of September 30, 2023, and December 31, 2022, we recognized $ 11 million and $ 6 million of gross unrealized losses, respectively, in 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 September 30, 2023 Gross Number Fair Unrealized of Value Losses Securities (1) Less than six months $ 10,143 $ 3,100 1,344 Six months or greater, but less than nine months 782 282 172 Nine months or greater, but less than twelve months 183 84 25 Twelve months or greater 5,240 2,600 1,052 Total $ 16,348 $ 6,066 2,593 As of December 31, 2022 Gross Number Fair Unrealized of Value Losses Securities (1) Less than six months $ 10,895 $ 3,514 1,489 Six months or greater, but less than nine months 4,256 2,150 640 Nine months or greater, but less than twelve months 362 243 73 Twelve months or greater 2 - 15 Total $ 15,515 $ 5,907 2,217 (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 decreased by $ 1.4 billion for the nine months ended September 30, 2023. Other than with respect to those certain fixed maturity AFS securities intended to be sold as part of the previously announced Fortitude Reinsurance Company Ltd. (“Fortitude Re”) reinsurance transaction (as discussed further below), we do not believe the unrealized loss position as of September 30, 2023, required 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 September 30, 2023, 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. For additional information related to the intent to sell impairments, see “Impairments on Fixed Maturity AFS Securities” below. As of September 30, 2023, 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 rising interest rates and widening credit spreads 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 September 30, 2023, and December 31, 2022, 96 % of the fair value of our corporate bond portfolio was rated investment grade. As of September 30, 2023, and December 31, 2022, the portion of our corporate bond portfolio rated below investment grade had an amortized cost of $ 3.2 billion and $ 3.5 billion, respectively, and a fair value of $ 3.0 billion and $ 3.3 billion, respectively. Based upon the analysis discussed above, we believe that as of September 30, 2023, and December 31, 2022, we would have recovered the amortized cost of each corporate bond. As of September 30, 2023, the unrealized losses associated with our MBS and ABS were attributable primarily to rising interest rates and widening credit spreads 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 September 30, 2023, 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 September 30, 2023 Corporate Bonds RMBS Other Total Balance as of beginning-of-period $ 13 $ 6 $ 6 $ 25 Additions from purchases of PCD debt securities (1) - - - - Additions for securities for which credit losses were not previously recognized 1 - - 1 Additions (reductions) for securities for which credit losses were previously recognized - - - - Reductions for securities charged-off ( 5 ) - - ( 5 ) Balance as of end-of-period (2) $ 9 $ 6 $ 6 $ 21 For the Nine Months Ended September 30, 2023 Corporate Bonds RMBS Other Total Balance as of beginning-of-year $ 9 $ 7 $ 5 $ 21 Additions from purchases of PCD debt securities (1) - - - - Additions for securities for which credit losses were not previously recognized 21 - - 21 Additions (reductions) for securities for which credit losses were previously recognized ( 3 ) ( 1 ) 1 ( 3 ) Reductions for securities disposed ( 1 ) - - ( 1 ) Reductions for securities charged-off ( 17 ) - - ( 17 ) Balance as of end-of-period (2) $ 9 $ 6 $ 6 $ 21 For the Three Months Ended September 30, 2022 Corporate Bonds RMBS Other Total Balance as of beginning-of-period $ 7 $ 3 $ 2 $ 12 Additions from purchases of PCD debt securities (1) - - - - Additions for securities for which credit losses were not previously recognized - 2 1 3 Additions (reductions) for securities for which credit losses were previously recognized - - 3 3 Balance as of end-of-period (2) $ 7 $ 5 $ 6 $ 18 For the Nine Months Ended September 30, 2022 Corporate Bonds RMBS Other Total Balance as of beginning-of-year $ 17 $ 1 $ 1 $ 19 Additions from purchases of PCD debt securities (1) - - - - Additions for securities for which credit losses were not previously recognized 2 2 1 5 Additions (reductions) for securities for which credit losses were previously recognized 1 2 4 7 Reductions for securities disposed ( 1 ) - - ( 1 ) Reductions for securities charged-off ( 12 ) - - ( 12 ) Balance as of end-of-period (2) $ 7 $ 5 $ 6 $ 18 (1) Represents purchased credit-deteriorated (“PCD”) fixed maturity AFS securities. (2) As of September 30, 2023 and 2022, accrued investment income on fixed maturity AFS securities totaled $ 1.2 billion and $ 1.1 billion, respectively, 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 September 30, 2023 As of December 31, 2022 Commercial Residential Total Commercial Residential Total Current $ 17,131 $ 1,555 $ 18,686 $ 16,913 $ 1,315 $ 18,228 30 to 59 days past due - 24 24 19 23 42 60 to 89 days past due - 13 13 - 6 6 90 or more days past due - 44 44 - 33 33 Allowance for credit losses ( 89 ) ( 24 ) ( 113 ) ( 83 ) ( 15 ) ( 98 ) Unamortized premium (discount) ( 7 ) 40 33 ( 9 ) 36 27 Mark-to-market gains (losses) (1) ( 27 ) 1 ( 26 ) ( 27 ) - ( 27 ) Total carrying value $ 17,008 $ 1,653 $ 18,661 $ 16,813 $ 1,398 $ 18,211 (1) Represents the mark-to-market on certain mortgage loans on real estate for which we have elected the fair value option. See Note 14 for additional information. Our commercial mortgage loan portfolio had the largest concentrations in California, which accounted for 28 % of commercial mortgage loans on real estate as of September 30, 2023, and December 31, 2022, and Texas, which accounted for 10 % and 9 % of commercial mortgage loans on real estate as of September 30, 2023, and December 31, 2022, respectively. As of September 30, 2023, our residential mortgage loan portfolio had the largest concentrations in California and New York, which accounted for 14 % and 13 % of residential mortgage loans on real estate, respectively. As of December 31, 2022, our residential mortgage loan portfolio had the largest concentrations in California and New Jersey, which accounted for 17 % and 12 % of residential mortgage loans on real estate, respectively. As of September 30, 2023, and December 31, 2022, we had 89 and 73 residential mortgage loans, respectively, that were either delinquent or in foreclosure. As of September 30, 2023, and December 31, 2022, we had 66 and 49 residential mortgage loans in foreclosure, respectively, with an aggregate carrying value of $ 30 million and $ 21 million, respectively. We adopted ASU 2022-02, Troubled Debt Restructurings and Vintage Disclosures as of January 1, 2023, and accordingly no longer identify certain debt modifications as troubled debt restructurings. Losses from loan modifications for the three and nine months ended September 30, 2023, were less than $ 1 million and reported in realized gain (loss) on the Consolidated Statements of Comprehensive Income (Loss). As of September 30, 2023, and December 31, 2022, there were three and two specifically identified impaired commercial mortgage loans, respectively, with an aggregate carrying value of $ 3 million and less than $ 1 million, respectively. As of September 30, 2023, and December 31, 2022, there were 67 and 37 specifically identified impaired residential mortgage loans, respectively, with an aggregate carrying value of $ 34 million and $ 16 million, respectively. Additional information related to impaired mortgage loans on real estate (in millions) was as follows: For the Three For the Nine Months Ended Months Ended September 30, September 30, 2023 2022 2023 2022 Average aggregate carrying value for impaired mortgage loans on real estate $ 34 $ 13 $ 25 $ 16 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 September 30, 2023 As of December 31, 2022 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 - 47 - 34 Total $ - $ 47 $ - $ 34 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 September 30, 2023 Debt- Debt- Debt- Service Service Service Less Coverage 65% Coverage Greater Coverage than 65% Ratio to 75% Ratio than 75% Ratio Total Origination Year 2023 $ 934 1.87 $ 48 1.42 $ - - $ 982 2022 1,766 2.06 88 2.06 1 1.13 1,855 2021 2,322 3.36 64 1.57 - - 2,386 2020 1,222 3.19 11 1.50 - - 1,233 2019 2,443 2.44 82 1.48 10 2.33 2,535 2018 and prior 7,980 2.42 152 1.59 1 1.67 8,133 Total $ 16,667 $ 445 $ 12 $ 17,124 As of December 31, 2022 Debt- Debt- Debt- Service Service Service Less Coverage 65% Coverage Greater Coverage than 65% Ratio to 75% Ratio than 75% Ratio Total Origination Year 2022 $ 1,769 2.06 $ 105 1.50 $ 2 1.45 $ 1,876 2021 2,335 3.05 72 1.53 - - 2,407 2020 1,280 2.99 17 1.58 - - 1,297 2019 2,643 2.17 81 1.50 29 1.58 2,753 2018 2,222 2.17 67 1.62 - - 2,289 2017 and prior 6,170 2.44 131 1.75 - - 6,301 Total $ 16,419 $ 473 $ 31 $ 16,923 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 September 30, 2023 Performing Nonperforming Total Origination Year 2023 $ 359 $ - $ 359 2022 552 17 569 2021 477 14 491 2020 83 1 84 2019 103 12 115 2018 and prior 55 3 58 Total $ 1,629 $ 47 $ 1,676 As of December 31, 2022 Performing Nonperforming Total Origination Year 2022 $ 578 $ 5 $ 583 2021 527 6 533 2020 90 3 93 2019 119 18 137 2018 65 2 67 2017 and prior - - - Total $ 1,379 $ 34 $ 1,413 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 September 30, 2023 Commercial Residential Total Balance as of beginning-of-period $ 81 $ 23 $ 104 Additions (reductions) from provision for credit loss expense (1) 8 1 9 Additions from purchases of PCD mortgage loans on real estate - - - Balance as of end-of-period (2) $ 89 $ 24 $ 113 For the Nine Months Ended September 30, 2023 Commercial Residential Total Balance as of beginning-of-year $ 83 $ 15 $ 98 Additions (reductions) from provision for credit loss expense (1) 6 9 15 Additions from purchases of PCD mortgage loans on real estate - - - Balance as of end-of-period (2) $ 89 $ 24 $ 113 For the Three Months Ended September 30, 2022 Commercial Residential Total Balance as of beginning-of-period $ 72 $ 9 $ 81 Additions (reductions) from provision for credit loss expense (1) 8 2 10 Additions from purchases of PCD mortgage loans on real estate - - - Balance as of end-of-period (2) $ 80 $ 11 $ 91 For the Nine Months Ended September 30, 2022 Commercial Residential Total Balance as of beginning-of-year $ 78 $ 17 $ 95 Additions (reductions) from provision for credit loss expense (1) 2 ( 6 ) ( 4 ) Additions from purchases of PCD mortgage loans on real estate - - - Balance as of end-of-period (2) $ 80 $ 11 $ 91 (1) We recognized less than $( 1 ) million and $ 1 million of credit loss benefit (expense) related to unfunded commitments for mortgage loans on real estate for the three months ended September 30, 2023 and 2022, respectively. We recognized $( 1 ) million and less than $ 1 million of credit loss benefit (expense) related to unfunded commitments for mortgage loans on real estate for the nine months ended September 30, 2023 and 2022, respectively. (2) Accrued investment income on mortgage loans on real estate totaled $ 54 million and $ 50 million as of September 30, 2023 and 2022, respectively, and was excluded from the estimate of credit losses. Alternative Investments As of September 30, 2023 , and December 31, 2022 , alternative investments included investments in 337 and 328 different partnerships, respectively, and represented approximately 2 % of total investments. Impairments on Fixed Maturity AFS Securities Details underlying intent to sell impairments and credit loss benefit (expense) incurred 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 For the Nine Months Ended Months Ended September 30, September 30, 2023 2022 2023 2022 Intent to Sell Impairments (1) Fixed maturity AFS securities: Corporate bonds $ ( 1,057 ) $ - $ ( 3,805 ) $ - State and municipal bonds ( 62 ) - ( 214 ) - RMBS ( 19 ) - ( 74 ) - CMBS ( 7 ) - ( 60 ) - ABS ( 4 ) - ( 57 ) - Hybrid and redeemable preferred securities ( 1 ) - ( 3 ) - Total intent to sell impairments $ ( 1,150 ) $ - $ ( 4,213 ) $ - Credit Loss Benefit (Expense) Fixed maturity AFS securities: Corporate bonds $ ( 1 ) $ - $ ( 16 ) $ ( 2 ) RMBS - ( 2 ) 1 ( 4 ) ABS - ( 3 ) ( 1 ) ( 5 ) Total credit loss benefit (expense) $ ( 1 ) $ ( 5 ) $ ( 16 ) $ ( 11 ) (1) Represents impairment of certain fixed maturity AFS securities in an unrealized loss position, resulting from the Company’s intent to sell these securities as part of the previously announced Fortitude Re reinsurance transaction. Within the investment portfolio anticipated to be sold in the transaction, there are additional fixed maturity AFS securities in an unrealized gain position of approximately $ 212 million pre-tax as of September 30, 2023. Pursuant to the applicable accounting guidance, the Company impaired the securities in a loss position down to fair market value upon entry into the agreement in the second quarter and recognized additional impairment on certain of these securities during the third quarter due to higher interest rates. The Company will recognize a gain for any securities in an unrealized gain position at the time when the transaction closes. See Note 8 for additional information. Payables for Collateral on Investments The carrying value of the payables for collateral on investments included on the Consolidated Balance Sheets and the fair value of the related investments or collateral (in millions) consisted of the following: As of September 30, 2023 As of December 31, 2022 Carrying Fair Carrying Fair Value Value Value Value Collateral payable for derivative investments (1) $ 4,522 $ 4,522 $ 3,210 $ 3,210 Securities pledged under securities lending agreements (2) 290 280 298 287 Investments pledged for FHLBI (3) 2,920 3,860 3,130 3,925 Total payables for collateral on investments $ 7,732 $ 8,662 $ 6,638 $ 7,422 (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. This also includes interest payable on collateral. See Note 6 for additional information. (2) Our pledged securities under securities lending agreements are included in fixed maturity AFS securities on the 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 FHLB of Indianapolis (“FHLBI”) are included in fixed maturity AFS securities and mortgage loans on real estate on the 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 September 30, 2023, and December 31, 2022, 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 Nine Months Ended September 30, 2023 2022 Collateral payable for derivative investments $ 1,312 $ ( 2,140 ) Securities pledged under securities lending agreements ( 8 ) 59 Investments pledged for FHLBI ( 210 ) - Total increase (decrease) in payables for collateral on investments $ 1,094 $ ( 2,081 ) We have elected not to offset our securities lending transactions in the consolidated financial statements. The remaining contractual maturities of securities lending transactions accounted for as secured borrowings (in millions) were as follows: As of September 30, 2023 Overnight and Continuous Up to 30 Days 30 - 90 Days Greater Than 90 Days Total Securities Lending Corporate bonds $ 281 $ - $ - $ - $ 281 Foreign government bonds 1 - - - 1 Equity securities 8 - - - 8 Total gross secured borrowings $ 290 $ - $ - $ - $ 290 As of December 31, 2022 Overnight and Continuous Up to 30 Days 30 - 90 Days Greater Than 90 Days Total Securities Lending Corporate bonds $ 288 $ - $ - $ - $ 288 Foreign government bonds 2 - - - 2 Equity securities 8 - - - 8 Total gross secured borrowings $ 298 $ - $ - $ - $ 298 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 consolidated financial statements. In addition, we receive securities in connection with securities borrowing agreements that we are permitted to sell or re-pledge. As of September 30, 2023, the fair value of this collateral received that we are permitted to sell or re-pledge was $ 25 million, and we had no t re-pledged any of this collateral to cover our collateral requirements. We also accept collateral from derivative counterparties in the form of securities that we are permitted to sell or re-pledge. As of September 30, 2023, the fair value of this collateral received that we are permitted to sell or re-pledge was $ 1.0 billion, and we had re-pledged $ 335 million of this collateral to cover our collateral requirements. We have also pledged fixed maturity AFS securities to derivative counterparties with a fair value of $ 87 million as of September 30, 2023. Investment Commitments As of September 30, 2023, our investment commitments were $ 2.3 billion, which included $ 1.8 billion of LPs, $ 257 million of mortgage loans on real estate and $ 217 million of private placement securities. Concentrations of Financial Instruments As of September 30, 2023, our most significant investments in one issuer were our investments in securities issued by White Chapel V LLC and White Chapel LLC with a fair value of $ 1.3 billion and $ 1.0 billion, respectively, or 1 % of total investments. As of December 31, 2022, our most significant investments in one issuer were our investments in securities issued by White Chapel LLC and the Federal National Mortgage Association with a fair value of $ 1.0 billion and $ 702 million, respectively, or 1 % of total investments. These concentrations include fixed maturity AFS, trading and equity securities. As of September 30, 2023, and December 31, 2022, our most significant investments in one industry were our investments in securities in the financial services industry with a fair value of $ 19.5 billion and $ 19.2 billion, respectively, or 14 % and 15 %, respectively, of total investments, and our investments in securities in the consumer non-cyclical industry with a fair value of $ 14.5 billion and $ 14.3 billion, respectively, or 11 % of total investments. These concentrations include fixed maturity AFS, trading and equity securities. |
Variable Interest Entities
Variable Interest Entities | 9 Months Ended |
Sep. 30, 2023 | |
Variable Interest Entities [Abstract] | |
Variable Interest Entities | 5. Variable Inte rest Entities Unconsolidated Variable Interest Entities Structured Securities Through our investment activities, we make passive investments in structured securities issued by VIEs for which we are not the manager. These structured securities include our ABS, RMBS and 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 LPs and limited liability companies (“LLCs”) 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 $ 3.2 billion and $ 3.0 billion as of September 30, 2023, and December 31, 2022, respectively. |
Derivative Instruments
Derivative Instruments | 9 Months Ended |
Sep. 30, 2023 | |
Derivative Instruments [Abstract] | |
Derivative Instruments | 6. Derivative Instruments We maintain an overall risk management strategy that incorporates the use of derivative instruments to minimize significant unplanned fluctuations in earnings that are caused by interest rate risk, foreign currency exchange risk, equity market risk, basis risk, commodity risk and credit risk. We assess these risks by continually identifying and monitoring changes in our exposures that may adversely affect expected future cash flows and by evaluating hedging opportunities. Derivative activities are monitored by various management committees. The committees are responsible for overseeing the implementation of various hedging strategies that are developed through the analysis of financial simulation models and other internal and industry sources. The resulting hedging strategies are incorporated into our overall risk management strategies. See Note 14 for additional disclosures related to the fair value of our derivative instruments. Interest Rate Contracts We use derivative instruments as part of our interest rate risk management strategy. These instruments are economic hedges unless otherwise noted and include: Forward-Starting Interest Rate Swaps We use forward-starting interest rate swaps to hedge the interest rate exposure within our life and annuity products. 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 annuity contracts and life insurance products. 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, indexed variable annuity (RILA), fixed indexed annuity, IUL and VUL 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. Policyholders 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 policyholders, 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, indexed variable annuity (RILA) and VUL products. Put options are contracts that require buyers to pay 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, indexed variable annuity (RILA) and VUL 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. Commodity Contracts We use commodity contracts to economically hedge certain investments that are closely tied to the changes in commodity values. The commodity contract is an over-the-counter contract that combines a purchase put/sold call to lock in a commodity price within a predetermined range in exchange for a net premium. 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 (“CDSs”) to hedge the liability exposure on certain options in variable annuity products. We buy CDSs to hedge against a drop in bond prices due to credit concerns of certain bond issuers. A CDS 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. CDSs – Selling Protection We use CDSs to hedge the liability exposure on certain options in variable annuity products. We sell CDSs to offer credit protection to policyholders and investors. The CDSs hedge the policyholders and investors against a drop in bond prices due to credit concerns of certain bond issuers. A CDS 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 Ceded Derivative We also have an inter-company agreement through which LNBAR, an affiliated insurer, assumes the risk under certain UL contracts for lapse protection riders (“LPR”). If the policyholder’s account balance is insufficient to pay the cost of insurance charges required to keep the policy in force, and the policyholder has made the required deposits, we will be reimbursed for those charges. Embedded Derivatives We have embedded derivatives that include: 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. Policyholders may elect to rebalance index options at renewal dates. At the end of each indexed term, which can be up to six years , we have the opportunity to re-price the indexed component by establishing participation rates, caps, spreads and specified rates, subject to contractual guarantees. We use options that are highly correlated to the portfolio allocation decisions of our policyholders, 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 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 September 30, 2023 As of December 31, 2022 Notional Fair Value Notional Fair Value Amounts Asset Liability Amounts Asset Liability Qualifying Hedges Cash flow hedges: Interest rate contracts (1) $ 663 $ - $ 145 $ 1,377 $ 4 $ 232 Foreign currency contracts (1) 4,578 550 33 4,383 643 18 Total cash flow hedges 5,241 550 178 5,760 647 250 Fair value hedges: Interest rate contracts (1) 484 15 15 524 2 44 Non-Qualifying Hedges Interest rate contracts (1) 89,067 1,003 1,398 105,977 709 935 Foreign currency contracts (1) 353 24 1 395 27 2 Equity market contracts (1) 285,520 8,194 3,366 142,653 5,135 2,035 Commodity contracts (1) 27 9 11 13 14 3 Credit contracts (1) 307 - - - - - LPR ceded derivative (2) - 184 - - 212 - Embedded derivatives: Reinsurance-related (3) - 933 - - 681 - Indexed annuity and IUL contracts (3) (4) - 586 7,174 - 525 4,783 Total derivative instruments $ 380,999 $ 11,498 $ 12,143 $ 255,322 $ 7,952 $ 8,052 (1) These asset and liability balances are presented on a gross basis. Amounts are reported in derivative investments and other liabilities on the Consolidated Balance Sheets after the evaluation for right of offset subject to master netting agreements. (2) Reported in other assets on the Consolidated Balance Sheets. (3) Reported in other assets and other liabilities on the Consolidated Balance Sheets. (4) Reported in policyholder account balances on the Consolidated Balance Sheets. The maturity of the notional amounts of derivative instruments (in millions) was as follows: Remaining Life as of September 30, 2023 Less Than 1 – 5 6 – 10 11 – 30 Over 30 1 Year Years Years Years Years Total Interest rate contracts (1) $ 27,214 $ 16,713 $ 22,487 $ 20,800 $ 3,000 $ 90,214 Foreign currency contracts (2) 252 953 1,592 2,092 42 4,931 Equity market contracts 193,990 74,261 7,014 9 10,246 285,520 Commodity contracts 27 - - - - 27 Credit contracts - - 307 - - 307 Total derivative instruments with notional amounts $ 221,483 $ 91,927 $ 31,400 $ 22,901 $ 13,288 $ 380,999 (1) As of September 30, 2023, the latest maturity date for which we were hedging our exposure to the variability in future cash flows for these instruments was December 18, 2024 . (2) As of September 30, 2023, 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 September 30, December 31, September 30, December 31, 2023 2022 2023 2022 Line Item in the Consolidated Balance Sheets in which the Hedged Item is Included Fixed maturity AFS securities, at fair value $ 498 $ 587 $ - $ 44 The change in our unrealized gain (loss) on derivative instruments within AOCI (in millions) was as follows: For the Nine Months Ended September 30, 2023 2022 Unrealized Gain (Loss) on Derivative Instruments Balance as of beginning-of-year $ 301 $ 258 Other comprehensive income (loss): Unrealized holding gains (losses) arising during the period: Cash flow hedges: Interest rate contracts 102 ( 392 ) Foreign currency contracts ( 92 ) 178 Change in foreign currency exchange rate adjustment 30 623 Income tax benefit (expense) ( 9 ) ( 87 ) Less: Reclassification adjustment for gains (losses) included in net income (loss): Cash flow hedges: Interest rate contracts (1) - 1 Foreign currency contracts (1) 42 48 Foreign currency contracts (2) 4 29 Income tax benefit (expense) ( 10 ) ( 16 ) Balance as of end-of-period $ 296 $ 518 (1) The OCI offset is reported within net investment income on the Consolidated Statements of Comprehensive Income (Loss). (2) The OCI offset is reported within realized gain (loss) on the 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 September 30, 2023 2022 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 $ ( 867 ) $ 1,466 $ 1,895 $ 33 $ 1,241 $ 2,094 Qualifying Hedges Gain or (loss) on fair value hedging relationships: Interest rate contracts: Hedged items - ( 41 ) - - ( 42 ) - Derivatives designated as hedging instruments - 41 - - 42 - Gain or (loss) on cash flow hedging relationships: Interest rate contracts: Amount of gain or (loss) reclassified from AOCI into income - - - - - - Foreign currency contracts: Amount of gain or (loss) reclassified from AOCI into income 2 14 - 25 19 - Non-Qualifying Hedges Interest rate contracts ( 604 ) - - ( 552 ) - - Foreign currency contracts - - - 4 - - Equity market contracts 163 - - ( 188 ) - - Commodity contracts ( 1 ) - - ( 6 ) - - Credit contracts - - - ( 2 ) - - LPR ceded derivative - - 18 - - 24 Embedded derivatives: Reinsurance-related 243 - - 382 - - Indexed annuity and IUL contracts 572 - - 347 - - Gain (Loss) Recognized in Income For the Nine Months Ended September 30, 2023 2022 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 $ ( 4,513 ) $ 4,351 $ 5,766 $ 541 $ 3,931 $ 6,118 Qualifying Hedges Gain or (loss) on fair value hedging relationships: Interest rate contracts: Hedged items - ( 44 ) - - ( 164 ) - Derivatives designated as - hedging instruments - 44 - - 164 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 4 42 - 29 48 - Non-Qualifying Hedges Interest rate contracts ( 592 ) - - ( 1,998 ) - - Foreign currency contracts ( 2 ) - - 6 - - Equity market contracts 913 - - ( 2,100 ) - - Commodity contracts 10 - - 4 - - Credit contracts ( 2 ) - - ( 2 ) - - LPR ceded derivative - - 28 - - 127 Embedded derivatives: Reinsurance-related 252 - - 1,361 - - Indexed annuity and IUL contracts ( 1,706 ) - - 3,030 - - As of September 30, 2023, $ 59 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 nine months ended September 30, 2023 and 2022, there were no material reclassifications to earnings due to hedged firm commitments no longer deemed probable or due to hedged forecasted transactions that had not occurred by the end of the originally specified time period. As of September 30, 2023 and D ecember 31, 2022, we did not have any exposure related to CDSs for which we are the seller. 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. The non-performance risk 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 September 30 , 2023 , the non-performance risk 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 September 30 , 2023 , or December 31, 2022. 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 September 30, 2023 As of December 31, 2022 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- $ 1,061 $ ( 42 ) $ 383 $ ( 6 ) A+ 3,326 ( 379 ) 1,718 ( 151 ) A 57 ( 49 ) 1,099 - A- 58 - - - $ 4,502 $ ( 470 ) $ 3,200 $ ( 157 ) Balance Sheet Offsetting Information related to the effects of offsetting on the Consolidated Balance Sheets (in millions) was as follows: As of September 30, 2023 Embedded Derivative Derivative Instruments Instruments Total Financial Assets Gross amount of recognized assets $ 8,553 $ 1,519 $ 10,072 Gross amounts offset ( 3,099 ) - ( 3,099 ) Net amount of assets 5,454 1,519 6,973 Gross amounts not offset: Cash collateral ( 4,502 ) - ( 4,502 ) Non-cash collateral (1) ( 952 ) - ( 952 ) Net amount $ - $ 1,519 $ 1,519 Financial Liabilities Gross amount of recognized liabilities $ 1,870 $ 7,174 $ 9,044 Gross amounts offset ( 1,242 ) - ( 1,242 ) Net amount of liabilities 628 7,174 7,802 Gross amounts not offset: Cash collateral ( 470 ) - ( 470 ) Non-cash collateral (2) ( 158 ) - ( 158 ) Net amount $ - $ 7,174 $ 7,174 (1) Excludes excess non-cash collateral received of $ 826 million, as the collateral offset is limited to the net estimated fair value of derivatives after application of netting arrangements. (2) Excludes excess non-cash collateral pledged of $ 320 million, as the collateral offset is limited to the net estimated fair value of derivatives after application of netting arrangements. As of December 31, 2022 Embedded Derivative Derivative Instruments Instruments Total Financial Assets Gross amount of recognized assets $ 6,483 $ 1,206 $ 7,689 Gross amounts offset ( 2,964 ) - ( 2,964 ) Net amount of assets 3,519 1,206 4,725 Gross amounts not offset: Cash collateral ( 3,200 ) - ( 3,200 ) Non-cash collateral (1) ( 319 ) - ( 319 ) Net amount $ - $ 1,206 $ 1,206 Financial Liabilities Gross amount of recognized liabilities $ 304 $ 4,783 $ 5,087 Gross amounts offset ( 50 ) - ( 50 ) Net amount of liabilities 254 4,783 5,037 Gross amounts not offset: Cash collateral ( 157 ) - ( 157 ) Non-cash collateral (2) ( 46 ) - ( 46 ) Net amount $ 51 $ 4,783 $ 4,834 (1) Excludes excess non-cash collateral received of $ 1.1 billion, as the collateral offset is limited to the net estimated fair value of derivatives after application of netting arrangements. (2) There was no excess non-cash collateral pledged as of December 31, 2022. |
DAC, VOBA, DSI and DFEL
DAC, VOBA, DSI and DFEL | 9 Months Ended |
Sep. 30, 2023 | |
DAC, VOBA, DSI and DFEL [Abstract] | |
DAC, VOBA, DSI and DFEL | 7. DAC, VOBA, DSI and DFEL The following table reconciles DAC, VOBA and DSI (in millions) to the Consolidated Balance Sheets: As of As of September 30, December 31, 2023 2022 DAC, VOBA and DSI Variable Annuities $ 4,027 $ 4,047 Fixed Annuities 454 479 Traditional Life 1,372 1,336 UL and Other 6,099 6,002 Group Protection 147 141 Retirement Plan Services 264 258 Total DAC, VOBA and DSI $ 12,363 $ 12,263 The following table reconciles DFEL (in millions) to the Consolidated Balance Sheets: As of As of September 30, December 31, 2023 2022 DFEL Variable Annuities $ 303 $ 310 UL and Other 5,343 4,735 Total DFEL $ 5,646 $ 5,045 The following tables summarize the changes in DAC (in millions): For the Nine Months Ended September 30, 2023 Retirement Variable Fixed Traditional UL and Group Plan Annuities Annuities Life Other Protection Services Balance as of beginning-of-year $ 3,880 $ 439 $ 1,286 $ 5,518 $ 141 $ 241 Deferrals 269 31 148 346 79 15 Amortization ( 281 ) ( 51 ) ( 106 ) ( 217 ) ( 73 ) ( 14 ) Balance as of end-of-period $ 3,868 $ 419 $ 1,328 $ 5,647 $ 147 $ 242 For the Year Ended December 31, 2022 Retirement Variable Fixed Traditional UL and Group Plan Annuities Annuities Life Other Protection Services Balance as of beginning-of-year $ 3,860 $ 448 $ 1,146 $ 5,269 $ 140 $ 239 Deferrals 390 60 266 537 98 21 Amortization ( 370 ) ( 69 ) ( 126 ) ( 288 ) ( 97 ) ( 19 ) Balance as of end-of-year $ 3,880 $ 439 $ 1,286 $ 5,518 $ 141 $ 241 DAC amortization expense of $ 248 million and $ 742 million was recorded in commissions and other expenses on the Consolidated Statements of Comprehensive Income (Loss) for the three and nine months ended September 30, 2023, respectively, and $ 242 million and $ 725 million for the corresponding periods in 2022. The following tables summarize the changes in VOBA (in millions): For the Nine Months Ended September 30, 2023 Fixed Traditional UL and Annuities Life Other Balance as of beginning-of-year $ 17 $ 50 $ 454 Deferrals - - 1 Amortization ( 2 ) ( 6 ) ( 32 ) Balance as of end-of-period $ 15 $ 44 $ 423 For the Year Ended December 31, 2022 Fixed Traditional UL and Annuities Life Other Balance as of beginning-of-year $ 20 $ 59 $ 499 Deferrals - - 2 Amortization ( 3 ) ( 9 ) ( 47 ) Balance as of end-of-year $ 17 $ 50 $ 454 VOBA amortization expense of $ 13 million and $ 40 million was recorded in commissions and other expenses on the Consolidated Statements of Comprehensive Income (Loss) for the three and nine months ended September 30, 2023, respectively, and $ 14 million and $ 44 million for the corresponding periods in 2022. No additions or write-offs were recorded for each respective year. The following tables summarize the changes in DSI (in millions): For the Nine Months Ended September 30, 2023 Retirement Variable Fixed UL and Plan Annuities Annuities Other Services Balance as of beginning-of-year $ 167 $ 23 $ 30 $ 17 Deferrals 3 - 1 5 Amortization ( 11 ) ( 3 ) ( 2 ) - Balance as of end-of-period $ 159 $ 20 $ 29 $ 22 For the Year Ended December 31, 2022 Retirement Variable Fixed UL and Plan Annuities Annuities Other Services Balance as of beginning-of-year $ 181 $ 27 $ 31 $ 14 Deferrals 2 - 1 4 Amortization ( 16 ) ( 4 ) ( 2 ) ( 1 ) Balance as of end-of-year $ 167 $ 23 $ 30 $ 17 DSI amortization expense of $ 5 million and $ 16 million was recorded in interest credited on the Consolidated Statements of Comprehensive Income (Loss) for the three and nine months ended September 30, 2023, respectively, and $ 6 million and $ 17 million for the corresponding periods in 2022. The following tables summarize the changes in DFEL (in millions): For the Nine Months Ended For the Year Ended September 30, 2023 December 31, 2022 Variable UL and Variable UL and Annuities Other Annuities Other Balance as of beginning-of-year $ 310 $ 4,735 $ 318 $ 3,902 Deferrals 15 799 22 1,060 Amortization ( 22 ) ( 191 ) ( 30 ) ( 227 ) Balance as of end-of-period $ 303 $ 5,343 $ 310 $ 4,735 DFEL amortization of $ 74 million and $ 213 million was recorded in fee income on the Consolidated Statements of Comprehensive Income (Loss) for the three and nine months ended September 30, 2023, respectively, and $ 63 million and $ 192 million for the corresponding periods in 2022. |
Reinsurance
Reinsurance | 9 Months Ended |
Sep. 30, 2023 | |
Reinsurance [Abstract] | |
Reinsurance | 8. Reinsurance On May 2, 2023, LNL and its affiliate entered into a reinsurance agreement with Fortitude Re. Pursuant to the agreement, we will cede approximately $ 28 billion of in-force UL with secondary guarantees (“ULSG”), MoneyGuard ® and fixed annuity statutory reserves to Fortitude Re. The transaction is structured as a coinsurance treaty between us and Fortitude Re for the ULSG and fixed annuities blocks, and as coinsurance with funds withheld for the MoneyGuard block, with counterparty protections including a comfort trust established by Fortitude Re subject to investment guidelines to meet our risk management objectives. Fortitude Re is an authorized Bermuda reinsurer with reciprocal jurisdiction reinsurer status in Indiana. Under the terms of the reinsurance agreement, we will retain account administration and recordkeeping of the policies including claims management. This transaction is subject to customary closing conditions, including regulatory approvals. The transaction is expected to reduce balance sheet risk, strengthen our capital position and improve free cash flow. 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. Our allowance for credit losses was $ 114 million and $ 315 million as of September 30, 2023 and December 31, 2022, respectively. The decrease was primarily attributable to the release of the allowance for credit losses related to a third-party reinsurer, Scottish Re (U.S.) Inc. (“Scottish Re”), where liquidation proceedings commenced during the third quarter of 2023. As of September 30, 2023, reinsurance coverage terminated and all business ceded to Scottish Re was therefore recaptured. See Note 18 for additional information. |
Goodwill
Goodwill | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill [Abstract] | |
Goodwill and Specifically Identifiable Intangible Assets | 9. Goodwill The changes in the carrying amount of goodwill (in millions) by reportable segment were as follows: For the Nine Months Ended September 30, 2023 Gross Accumulated Net Goodwill Impairment Goodwill Net as of as of as of Goodwill Beginning- Beginning- Beginning- as of End- of-Year of-Year of-Year Impairment of-Period Annuities $ 1,040 $ ( 600 ) $ 440 $ - $ 440 Life Insurance 2,186 ( 2,186 ) - - - Group Protection 684 - 684 - 684 Retirement Plan Services 20 - 20 - 20 Total goodwill $ 3,930 $ ( 2,786 ) $ 1,144 $ - $ 1,144 For the Nine Months Ended September 30, 2022 Gross Accumulated Net Goodwill Impairment Goodwill Net as of as of as of Goodwill Beginning- Beginning- Beginning- as of End- of-Year of-Year of-Year Impairment of-Period Annuities $ 1,040 $ ( 600 ) $ 440 $ - $ 440 Life Insurance 2,186 ( 1,552 ) 634 ( 634 ) - Group Protection 684 - 684 - 684 Retirement Plan Services 20 - 20 - 20 Total goodwill $ 3,930 $ ( 2,152 ) $ 1,778 $ ( 634 ) $ 1,144 The fair values of our reporting units (Level 3 fair value estimates) are comprised of the value of in-force (i.e., existing) business and the value of new business. Specifically, new business is representative of cash flows and profitability associated with policies or contracts we expect to issue in the future, reflecting our forecasts of future sales volume and product mix over a 10 -year period. To determine the values of in-force and new business, we use a discounted cash flows technique that applies a discount rate reflecting the market expected, weighted-average rate of return adjusted for the risk factors associated with operations to the projected future cash flows for each reporting unit. As a result of the capital market environment during the third quarter of 2022, including (i) declining equity markets and (ii) the impact of rising interest rates on our discount rate assumption, we accelerated our quantitative goodwill impairment test for our Life Insurance reporting unit as we concluded that there were indicators of impairment. Based on this quantitative test, which included updating our best estimate assumptions therein, we incurred an impairment during the third quarter of 2022 of the Life Insurance reporting unit goodwill of $ 634 million, which represented a write-off of the entire balance of goodwill for the reporting unit. We concluded that, for the third quarter of 2022, there were not indicators of impairment for our remaining reporting units (Annuities, Group Protection and Retirement Plan Services). As of October 1, 2022, we performed our annual quantitative goodwill impairment test for our other reporting units, and, as of such date, the fair value was in excess of the carrying value for each of the Annuities, Group Protection and Retirement Plan Services reporting units. During the fourth quarter of 2023, we will perform our annual quantitative goodwill impairment test as of October 1, 2023, on all of our reporting units. |
MBRs
MBRs | 9 Months Ended |
Sep. 30, 2023 | |
MRBs [Abstract] | |
MRBs | 10. MRBs The following table reconciles MRBs (in millions) to MRB assets and MRB liabilities on the Consolidated Balance Sheets: As of September 30, 2023 As of December 31, 2022 Net Net (Assets) (Assets) Assets Liabilities Liabilities Assets Liabilities Liabilities Variable Annuities $ 3,966 $ 1,293 $ ( 2,673 ) $ 2,666 $ 2,004 $ ( 662 ) Fixed Annuities 105 88 ( 17 ) 117 72 ( 45 ) Retirement Plan Services 37 4 ( 33 ) 24 2 ( 22 ) Total MRBs $ 4,108 $ 1,385 $ ( 2,723 ) $ 2,807 $ 2,078 $ ( 729 ) The following table summarizes the balances of and changes in net MRB (assets) liabilities (in millions): As of or For the Nine Months Ended As of or For the Year Ended September 30, 2023 December 31, 2022 Retirement Retirement Variable Fixed Plan Variable Fixed Plan Annuities Annuities Services Annuities Annuities Services Balance as of beginning-of-year $ ( 662 ) $ ( 45 ) $ ( 22 ) $ 2,398 $ 114 $ ( 1 ) Less: Effect of cumulative changes in non-performance risk ( 2,173 ) ( 40 ) ( 2 ) ( 2,425 ) ( 44 ) ( 13 ) Balance as of beginning-of-year, before the effect of changes in non-performance risk 1,511 ( 5 ) ( 20 ) 4,823 158 12 Issuances 3 - - 12 - ( 3 ) Attributed fees collected 1,127 23 4 1,571 32 6 Benefit payments ( 49 ) - - ( 63 ) - - Effect of changes in interest rates ( 2,347 ) ( 66 ) ( 7 ) ( 9,346 ) ( 232 ) ( 55 ) Effect of changes in equity markets ( 1,430 ) ( 5 ) ( 6 ) 4,293 12 18 Effect of changes in equity index volatility ( 358 ) 6 ( 3 ) ( 225 ) 14 ( 1 ) In-force updates and other changes in MRBs (1) 182 4 - 661 10 3 Effect of assumption review: Effect of changes in future expected policyholder behavior ( 33 ) 70 - ( 158 ) 1 - Effect of changes in other future expected assumptions (2) ( 66 ) 15 ( 2 ) ( 57 ) - - Balance as of end-of-period, before the effect of changes in non-performance risk ( 1,460 ) 42 ( 34 ) 1,511 ( 5 ) ( 20 ) Effect of cumulative changes in non-performance risk ( 1,213 ) ( 59 ) 1 ( 2,173 ) ( 40 ) ( 2 ) Balance as of end-of-period ( 2,673 ) ( 17 ) ( 33 ) ( 662 ) ( 45 ) ( 22 ) Less: ceded MRB assets (liabilities) ( 1,457 ) - ( 6 ) 294 - - Balance as of end-of-period, net of reinsurance $ ( 1,216 ) $ ( 17 ) $ ( 27 ) $ ( 956 ) $ ( 45 ) $ ( 22 ) Weighted-average age of policyholders (years) 72 68 63 71 68 63 Net amount at risk (3) 6,235 188 9 7,974 171 15 (1) Consists primarily of changes in MRB assets and liabilities related to differences between separate account fund performance and modeled indices and other changes such as actual to expected policyholder behavior. (2) Consists primarily of the update of fund mapping, volatility and other capital market assumptions. (3) Net amount at risk (“NAR”) is the current guaranteed minimum benefit in excess of the current account balance as of the balance sheet date. For GLBs, the guaranteed minimum benefit is calculated based on the present value of GLB payments. Our variable annuity products may offer more than one type of guaranteed benefit rider to a policyholder. In instances where more than one guaranteed benefit feature exists in a contract, the guaranteed benefit rider that provides the highest NAR is used in the calculation. Effect of Assumption Review For the nine months ended September 30, 2023, Variable Annuities had a favorable impact to net income (loss) attributable to the annual assumption review from updates to volatility and policyholder GLB utilization behavior assumptions, partially offset by unfavorable impacts from updates to mortality and policyholder lapse behavior assumptions. For the nine months ended September 30, 2023, Fixed Annuities had an unfavorable impact to net income (loss) attributable to the annual assumption review from updates to mortality and policyholder GLB utilization and lapse behavior assumptions. Retirement Plan Services did not have any significant assumption updates. For the year ended December 31, 2022, Variable Annuities had a favorable impact to net income (loss) attributable to the annual assumption review from updates to policyholder benefit utilization behavior and fund mapping and volatility assumptions. Fixed Annuities and Retirement Plan Services did not have any significant assumption updates. See “MRBs” in Note 1 and Note 14 for details related to our fair value judgments, assumptions, inputs and valuation methodology. |
Separate Accounts
Separate Accounts | 9 Months Ended |
Sep. 30, 2023 | |
Separate Accounts [Abstract] | |
Separate Accounts | 11. Separate Accounts The following table presents the fair value of separate account assets (in millions) reported on the Consolidated Balance Sheets by major investment category: As of As of September 30, December 31, 2023 2022 Mutual funds and collective investment trusts $ 145,178 $ 142,892 Exchange-traded funds 269 258 Fixed maturity AFS securities 161 169 Cash and invested cash 70 98 Other investments 132 119 Total separate account assets $ 145,810 $ 143,536 The following table reconciles separate account liabilities (in millions) to the Consolidated Balance Sheets: As of As of September 30, December 31, 2023 2022 Variable Annuities $ 105,192 $ 105,573 UL and Other 22,642 20,920 Retirement Plan Services 17,928 16,996 Other Operations (1) 48 47 Total separate account liabilities $ 145,810 $ 143,536 (1) Represents separate account liabilities reported in Other Operations primarily attributable to the indemnity reinsurance agreements with Protective ($ 42 million as of September 30, 2023, and December 31, 2022) that are excluded from the following tables. The following table summarizes the balances of and changes in separate account liabilities (in millions): As of or For the Nine Months Ended As of or For the Year Ended September 30, 2023 December 31, 2022 Retirement Retirement Variable UL and Plan Variable UL and Plan Annuities Other Services Annuities Other Services Balance as of beginning-of-year $ 105,573 $ 20,920 $ 16,996 $ 136,665 $ 24,785 $ 21,068 Gross deposits 2,137 1,178 1,576 3,371 1,900 2,378 Withdrawals ( 7,402 ) ( 227 ) ( 1,795 ) ( 9,238 ) ( 454 ) ( 2,378 ) Policyholder assessments ( 1,883 ) ( 714 ) ( 121 ) ( 2,603 ) ( 938 ) ( 164 ) Change in market performance 6,320 1,573 1,316 ( 23,194 ) ( 4,371 ) ( 3,710 ) Net transfers from (to) general account 447 ( 88 ) ( 44 ) 572 ( 2 ) ( 198 ) Balance as of end-of-period $ 105,192 $ 22,642 $ 17,928 $ 105,573 $ 20,920 $ 16,996 Cash surrender value $ 103,729 $ 20,324 $ 17,914 $ 103,987 $ 18,666 $ 16,982 |
Policyholder Account Balances
Policyholder Account Balances | 9 Months Ended |
Sep. 30, 2023 | |
Policyholder Account Balances [Abstract] | |
Policyholder Account Balances | 12. Policyholder Account Balances The following table reconciles policyholder account balances (in millions) to the Consolidated Balance Sheets: As of As of September 30, December 31, 2023 2022 Variable Annuities $ 26,772 $ 22,184 Fixed Annuities 23,655 23,338 UL and Other 36,810 37,258 Retirement Plan Services 24,099 25,138 Other (1) 5,441 6,054 Total policyholder account balances $ 116,777 $ 113,972 (1) Represents policyholder account balances reported primarily in Other Operations attributable to the indemnity reinsurance agreements with Protective ($ 5.1 billion and $ 5.7 billion as of September 30, 2023, and December 31, 2022, respectively) that are excluded from the following tables. The following table summarizes the balances and changes in policyholder account balances (in millions): As of or For the Nine Months Ended September 30, 2023 Retirement Variable Fixed UL and Plan Annuities Annuities Other Services Balance as of beginning-of-year $ 22,184 $ 23,338 $ 37,258 $ 25,138 Gross deposits 3,626 2,698 2,737 2,026 Withdrawals ( 508 ) ( 2,861 ) ( 1,077 ) ( 3,262 ) Policyholder assessments ( 1 ) ( 41 ) ( 3,337 ) ( 10 ) Net transfers from (to) separate account ( 311 ) - 90 ( 297 ) Interest credited 391 469 1,101 504 Change in fair value of embedded derivative instruments 1,391 52 38 - Balance as of end-of-period $ 26,772 $ 23,655 $ 36,810 $ 24,099 Weighted-average crediting rate 2.1 % 2.6 % 4.0 % 2.7 % Net amount at risk (1)(2) $ 6,235 $ 188 $ 301,876 $ 9 Cash surrender value 25,629 22,753 32,685 24,094 As of or For the Year Ended December 31, 2022 Retirement Variable Fixed UL and Plan Annuities Annuities Other Services Balance as of beginning-of-year $ 19,148 $ 22,522 $ 37,719 $ 23,579 Gross deposits 5,178 3,284 3,905 4,012 Withdrawals ( 417 ) ( 2,511 ) ( 1,215 ) ( 3,579 ) Policyholder assessments ( 2 ) ( 51 ) ( 4,446 ) ( 13 ) Net transfers from (to) separate account ( 492 ) - 2 510 Interest credited 287 532 1,476 629 Change in fair value of embedded derivative instruments ( 1,518 ) ( 438 ) ( 183 ) - Balance as of end-of-year $ 22,184 $ 23,338 $ 37,258 $ 25,138 Weighted-average crediting rate 1.4 % 2.4 % 3.9 % 2.6 % Net amount at risk (1)(2) $ 7,974 $ 171 $ 302,481 $ 15 Cash surrender value 21,147 22,502 33,130 25,133 (1) NAR is the current guaranteed minimum benefit in excess of the current account balance as of the balance sheet date. For GLBs, the guaranteed minimum benefit is calculated based on the present value of GLB payments. Our variable annuity products may offer more than one type of guaranteed benefit rider to a policyholder. In instances where more than one guaranteed benefit rider exists in a contract, the guaranteed benefit rider that provides the highest NAR is used in the calculation. (2) Calculation is based on total account balances and includes both policyholder account balances and separate account balances. The following table presents policyholder account balances (in millions) by range of guaranteed minimum crediting rates and the related range of difference, in basis points, between the interest being credited to policyholders and the respective guaranteed contract minimums: As of September 30, 2023 Greater 1-50 51-100 101-150 Than 150 At Basis Basis Basis Basis Range of Guaranteed Guaranteed Points Points Points Points Minimum Crediting Rate Minimum Above Above Above Above Total Variable Annuities Up to 1.00 % $ - $ - $ - $ - $ - $ - 1.01 % - 2.00 % 5 - - - 8 13 2.01 % - 3.00 % 602 - - - - 602 3.01 % - 4.00 % 1,429 - - - - 1,429 4.01 % and above 10 - - - - 10 Other (1) - - - - - 24,718 Total $ 2,046 $ - $ - $ - $ 8 $ 26,772 Fixed Annuities Up to 1.00 % $ 744 $ 427 $ 515 $ 518 $ 2,427 $ 4,631 1.01 % - 2.00 % 481 106 212 456 1,264 2,519 2.01 % - 3.00 % 1,881 32 6 - 3 1,922 3.01 % - 4.00 % 929 - - - - 929 4.01 % and above 182 - - - - 182 Other (1) - - - - - 13,472 Total $ 4,217 $ 565 $ 733 $ 974 $ 3,694 $ 23,655 UL and Other Up to 1.00 % $ 284 $ - $ 192 $ 34 $ 362 $ 872 1.01 % - 2.00 % 553 - - - 3,181 3,734 2.01 % - 3.00 % 6,998 11 147 - - 7,156 3.01 % - 4.00 % 15,385 - 1 - - 15,386 4.01 % and above 3,783 - - - - 3,783 Other (1) - - - - - 5,879 Total $ 27,003 $ 11 $ 340 $ 34 $ 3,543 $ 36,810 Retirement Plan Services Up to 1.00 % $ 407 $ 596 $ 762 $ 4,882 $ 2,837 $ 9,484 1.01 % - 2.00 % 610 2,405 1,474 668 - 5,157 2.01 % - 3.00 % 2,594 - - - - 2,594 3.01 % - 4.00 % 5,223 - - - - 5,223 4.01 % and above 1,641 - - - - 1,641 Total $ 10,475 $ 3,001 $ 2,236 $ 5,550 $ 2,837 $ 24,099 As of December 31, 2022 Greater 1-50 51-100 101-150 Than 150 At Basis Basis Basis Basis Range of Guaranteed Guaranteed Points Points Points Points Minimum Crediting Rate Minimum Above Above Above Above Total Variable Annuities Up to 1.00 % $ - $ - $ - $ - $ - $ - 1.01 % - 2.00 % 4 - - 8 - 12 2.01 % - 3.00 % 658 - - - - 658 3.01 % - 4.00 % 1,545 - - - - 1,545 4.01 % and above 11 - - - - 11 Other (1) - - - - - 19,958 Total $ 2,218 $ - $ - $ 8 $ - $ 22,184 Fixed Annuities Up to 1.00 % $ 891 $ 497 $ 589 $ 563 $ 1,329 $ 3,869 1.01 % - 2.00 % 544 144 179 492 1,057 2,416 2.01 % - 3.00 % 1,973 5 1 - - 1,979 3.01 % - 4.00 % 1,326 - - - - 1,326 4.01 % and above 193 - - - - 193 Other (1) - - - - - 13,555 Total $ 4,927 $ 646 $ 769 $ 1,055 $ 2,386 $ 23,338 UL and Other Up to 1.00 % $ 318 $ - $ 194 $ 29 $ 292 $ 833 1.01 % - 2.00 % 558 - - - 3,282 3,840 2.01 % - 3.00 % 7,218 156 - - - 7,374 3.01 % - 4.00 % 15,858 - 1 - - 15,859 4.01 % and above 3,824 - - - - 3,824 Other (1) - - - - - 5,528 Total $ 27,776 $ 156 $ 195 $ 29 $ 3,574 $ 37,258 Retirement Plan Services Up to 1.00 % $ 961 $ 1,001 $ 4,304 $ 1,703 $ 1,908 $ 9,877 1.01 % - 2.00 % 1,774 2,197 982 462 - 5,415 2.01 % - 3.00 % 2,711 1 - - - 2,712 3.01 % - 4.00 % 5,622 1 - - - 5,623 4.01 % and above 1,511 - - - - 1,511 Total $ 12,579 $ 3,200 $ 5,286 $ 2,165 $ 1,908 $ 25,138 (1) Consists of indexed account balances that include the fair value of embedded derivative instruments, payout annuity account balances, short-term dollar cost averaging annuities business and policy loans. |
Future Contract Benefits
Future Contract Benefits | 9 Months Ended |
Sep. 30, 2023 | |
Future Contract Benefits [Abstract] | |
Future Contract Benefits | 13. Future Contract Benefits The following table reconciles future contract benefits (in millions) to the Consolidated Balance Sheets: As of As of September 30, December 31, 2023 2022 Payout Annuities (1) $ 1,943 $ 2,003 Traditional Life (1) 3,252 3,190 Group Protection (2) 5,373 5,462 UL and Other (3) 14,899 14,777 Other Operations (4) 9,157 9,651 Other (5) 3,236 3,219 Total future contract benefits $ 37,860 $ 38,302 (1) See “LFPB” below for further information. (2) See “Liability for Future Claims” below for further information. (3) See “Additional Liabilities for Other Insurance Benefits” below for further information. (4) Represents future contract benefits reported in Other Operations primarily attributable to the indemnity reinsurance agreements with Protective ($ 5.3 billion and $ 5.4 billion as of September 30, 2023, and December 31, 2022, respectively) and Swiss Re ($ 2.0 billion and $ 2.2 billion as of September 30, 2023, and December 31, 2022, respectively) that are excluded from the following tables. (5) Represents other miscellaneous reserves outside the scope of ASU 2018-12 that are excluded from the following tables . LFPB The following table summarizes the balances of and changes in the present values of expected net premiums and LFPB (in millions, except years): As of or For the As of or For the Nine Months Ended Year Ended September 30, 2023 December 31, 2022 Payout Traditional Payout Traditional Annuities Life Annuities Life Present Value of Expected Net Premiums Balance as of beginning-of-year $ - $ 5,896 $ - $ 6,610 Less: Effect of cumulative changes in discount rate assumptions - ( 584 ) - 843 Beginning balance at original discount rate - 6,480 - 5,767 Effect of changes in cash flow assumptions - ( 5 ) - ( 382 ) Effect of actual variances from expected experience - ( 262 ) - ( 21 ) Adjusted balance as of beginning-of-year - 6,213 - 5,364 Issuances - 460 - 1,655 Interest accrual - 176 - 209 Net premiums collected - ( 588 ) - ( 742 ) Flooring impact of LFPB - 3 - ( 6 ) Ending balance at original discount rate - 6,264 - 6,480 Effect of cumulative changes in discount rate assumptions - ( 527 ) - ( 584 ) Balance as of end-of-period $ - $ 5,737 $ - $ 5,896 Present Value of Expected LFPB Balance as of beginning-of-year $ 2,003 $ 9,086 $ 2,511 $ 10,353 Less: Effect of cumulative changes in discount rate assumptions ( 263 ) ( 793 ) 266 1,460 Beginning balance at original discount rate (1) 2,266 9,879 2,245 8,893 Effect of changes in cash flow assumptions 17 ( 21 ) - ( 321 ) Effect of actual variances from expected experience ( 1 ) ( 289 ) 3 ( 5 ) Adjusted balance as of beginning-of-year 2,282 9,569 2,248 8,567 Issuances 83 460 122 1,655 Interest accrual 64 270 84 326 Benefit payments ( 142 ) ( 479 ) ( 188 ) ( 669 ) Ending balance at original discount rate (1) 2,287 9,820 2,266 9,879 Effect of cumulative changes in discount rate assumptions ( 344 ) ( 831 ) ( 263 ) ( 793 ) Balance as of end-of-period $ 1,943 $ 8,989 $ 2,003 $ 9,086 Net balance as of end-of-period $ 1,943 $ 3,252 $ 2,003 $ 3,190 Less: reinsurance recoverables 11 232 10 270 Net balance as of end-of-period, net of reinsurance $ 1,932 $ 3,020 $ 1,993 $ 2,920 Weighted-average duration of future policyholder benefit liability (years) 9 10 9 11 (1) Includes DPL within Payout Annuities of $ 38 million, $ 38 million and $ 22 million as of September 30, 2023, December 31, 2022 and December 31, 2021, respectively. For the nine months ended September 30, 2023, Payout Annuities had an unfavorable cash flow assumption impact to net income (loss) attributable to the annual assumption review from updates to mortality assumptions, and Traditional Life had a favorable cash flow assumption impact from updates to mortality assumptions, partially offset by an unfavorable impact from updates to policyholder lapse behavior assumptions. For the nine months ended September 30, 2023, Payout Annuities and Traditional Life did not have any significantly different actual experience compared to expected. For the year ended December 31, 2022, Payout Annuities did not have any significant assumption updates. Traditional Life had an unfavorable cash flow assumption impact to net income (loss) attributable to the annual assumption review from updates to mortality and lapse assumptions resulting in lower projected premiums and benefits, and a corresponding increase in reserves. For the year ended December 31, 2022, Payout Annuities and Traditional Life did not have any significantly different actual experience compared to expected. The following table summarizes the discounted and undiscounted expected future gross premiums and expected future benefit payments (in millions): As of September 30, 2023 As of December 31, 2022 Undiscounted Discounted Undiscounted Discounted Payout Annuities Expected future gross premiums $ - $ - $ - $ - Expected future benefit payments 3,552 1,943 3,471 2,003 Traditional Life Expected future gross premiums 13,410 8,802 13,166 8,887 Expected future benefit payments 13,372 8,989 13,026 9,086 The following table summarizes the gross premiums and interest accretion (in millions) recognized in insurance premiums and benefits, respectively, on the Consolidated Statements of Comprehensive Income (Loss): For the Three For the Nine Months Ended Months Ended September 30, September 30, 2023 2022 2023 2022 Payout Annuities Gross premiums $ 16 $ 49 $ 88 $ 92 Interest accretion 22 21 64 63 Traditional Life Gross premiums 293 285 885 841 Interest accretion 31 30 94 87 The following table summarizes the weighted-average interest rates: For the Nine Months For the Year Ended Ended September 30, December 31, 2023 2022 Payout Annuities Interest accretion rate 3.9 % 3.9 % Current discount rate 5.8 % 5.3 % Traditional Life Interest accretion rate 5.0 % 5.0 % Current discount rate 5.6 % 5.1 % Liability for Future Claims The following table summarizes the balances of and changes in liability for future claims (in millions, except years): Group Protection As of or For the Nine As of or For Months the Year Ended Ended September 30, December 31, 2023 2022 Balance as of beginning-of-year $ 5,462 $ 5,936 Less: Effect of cumulative changes in discount rate assumptions ( 597 ) 262 Beginning balance at original discount rate 6,059 5,674 Effect of changes in cash flow assumptions ( 27 ) 15 Effect of actual variances from expected experience ( 233 ) ( 117 ) Adjusted beginning-of-year balance 5,799 5,572 New incidence 1,267 1,777 Interest 122 141 Benefit payments ( 1,095 ) ( 1,431 ) Ending balance at original discount rate 6,093 6,059 Effect of cumulative changes in discount rate assumptions ( 720 ) ( 597 ) Balance as of end-of-period 5,373 5,462 Less: reinsurance recoverables 117 127 Balance as of end-of-period, net of reinsurance $ 5,256 $ 5,335 Weighted-average duration of liability for future claims (years) 5 4 For the nine months ended September 30, 2023, we had a favorable cash flow assumption impact to net income (loss) attributable to the annual assumption review from updates to long-term disability and life waiver claim termination rate assumptions, partially offset by unfavorable impacts from updates to long-term disability social security offset assumptions. For the nine months ended September 30, 2023, we experienced more favorable reported incidence and claim terminations than assumed. For the year ended December 31, 2022, we had an unfavorable cash flow assumption impact to net income (loss) attributable to the annual assumption review from updates to the long-term disability incidence and severity assumptions, partially offset by favorable impacts from updates to the life waiver termination rate assumptions. For the year ended December 31, 2022, we experienced more favorable claim terminations than assumed. The following table summarizes the discounted and undiscounted expected future benefit payments (in millions): As of September 30, 2023 As of December 31, 2022 Undiscounted Discounted Undiscounted Discounted Group Protection Expected future benefit payments $ 7,148 $ 6,093 $ 7,063 $ 6,059 The following table summarizes the gross premiums and interest accretion (in millions) recognized in insurance premiums and benefits, respectively, on the Consolidated Statements of Comprehensive Income (Loss): For the Three For the Nine Months Ended Months Ended September 30, September 30, 2023 2022 2023 2022 Group Protection Gross premiums $ 874 $ 852 $ 2,645 $ 2,523 Interest accretion 39 33 122 111 The following table summarizes the weighted-average interest rates: For the Nine Months For the Year Ended Ended September 30, December 31, 2023 2022 Group Protection Interest accretion rate 3.0 % 2.8 % Current discount rate 5.7 % 5.1 % Additional Liabilities for Other Insurance Benefits The following table summarizes the balances of and changes in additional liabilities for other insurance benefits (in millions, except years): UL and Other As of or For the Nine As of or For Months the Year Ended Ended September 30, December 31, 2023 2022 Balance as of beginning-of-year $ 14,777 $ 12,513 Less: Effect of cumulative changes in shadow balance in AOCI ( 905 ) 1,113 Balance as of beginning-of-year, excluding shadow balance in AOCI 15,682 11,400 Effect of changes in cash flow assumptions 173 3,108 Effect of actual variances from expected experience ( 28 ) 195 Adjusted beginning-of-year balance 15,827 14,703 Issuances - 7 Interest accrual 573 626 Net assessments collected 334 974 Benefit payments ( 473 ) ( 628 ) Balance as of end-of-period, excluding shadow balance in AOCI 16,261 15,682 Effect of cumulative changes in shadow balance in AOCI ( 136 ) ( 905 ) Balance as of end-of-period 14,899 14,777 Less: reinsurance recoverables 1,897 1,975 Balance as of end-of-period, net of reinsurance $ 13,002 $ 12,802 Weighted-average duration of additional liabilities for other insurance benefits (years) 17 17 For the nine months ended September 30, 2023, we had an unfavorable cash flow assumption impact to net income (loss) attributable to the annual assumption review from updates to policyholder lapse behavior assumptions, partially offset by a favorable impact from updates to interest rate assumptions. For the nine months ended September 30, 2023, we did not have any significantly different actual experience compared to expected. For the year ended December 31, 2022, we had an unfavorable cash flow assumption impact to net income (loss) attributable to the annual assumption review primarily from updates to policyholder lapse behavior assumptions related to UL products with secondary guarantees in the amount of $ 1.7 billion, net of reinsurance, after-tax, and to a lesser extent mortality and morbidity assumptions. We had unfavorable actual mortality experience compared to expected due to ongoing effects of the COVID-19 pandemic. The following table summarizes the gross assessments and interest accretion (in millions) recognized in insurance premiums and benefits, respectively, on the Consolidated Statements of Comprehensive Income (Loss): For the Three For the Nine Months Ended Months Ended September 30, September 30, 2023 2022 2023 2022 UL and Other Gross assessments $ 337 $ 690 $ 1,794 $ 2,097 Interest accretion 197 175 573 446 The following table summarizes the weighted-average interest rates: For the Nine Months For the Year Ended Ended September 30, December 31, 2023 2022 UL and Other Interest accretion rate 5.1 % 5.0 % |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value of Financial Instruments [Abstract] | |
Fair Value of Financial Instruments | 14. Fair Value of F inancial Instruments The carrying values and estimated fair values of our financial instruments (in millions) were as follows: As of September 30, 2023 As of December 31, 2022 Carrying Fair Carrying Fair Value Value Value Value Assets Fixed maturity AFS securities $ 100,387 $ 100,387 $ 99,465 $ 99,465 Trading securities 2,749 2,749 3,446 3,446 Equity securities 383 383 427 427 Mortgage loans on real estate 18,661 16,553 18,211 16,477 Derivative investments 5,454 5,454 3,519 3,519 Other investments 4,428 4,428 3,577 3,577 Cash and invested cash 2,285 2,285 2,499 2,499 MRB assets 4,108 4,108 2,807 2,807 Other assets: Ceded MRBs 273 273 540 540 Reinsurance-related embedded derivatives 933 933 681 681 Indexed annuity ceded embedded derivatives 586 586 525 525 LPR ceded derivative 184 184 212 212 Separate account assets 145,810 145,810 143,536 143,536 Liabilities Policyholder account balances: Account balances of certain investment contracts ( 43,068 ) ( 30,869 ) ( 43,550 ) ( 34,251 ) Indexed annuity and IUL contracts embedded derivatives ( 7,174 ) ( 7,174 ) ( 4,783 ) ( 4,783 ) MRB liabilities ( 1,385 ) ( 1,385 ) ( 2,078 ) ( 2,078 ) Short-term debt ( 497 ) ( 497 ) ( 562 ) ( 562 ) Long-term debt ( 2,244 ) ( 2,114 ) ( 2,269 ) ( 2,166 ) Other liabilities: Ceded MRBs ( 1,736 ) ( 1,736 ) ( 246 ) ( 246 ) Derivative liabilities ( 628 ) ( 628 ) ( 254 ) ( 254 ) Remaining guaranteed interest and similar contracts ( 433 ) ( 433 ) ( 574 ) ( 574 ) 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 the 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, excluding mortgage loans accounted for using the fair value option, are classified as Level 2 within the fair value hierarchy. Other Investments The carrying value of our assets classified as other investments, excluding short-term 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 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. Policyholder Account Balances Policyholder account balances include account balances of certain investment contracts. The fair value of the account balances 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 these policyholder account balances are classified as Level 3 within the fair value hierarchy. Other Liabilities Other liabilities include remaining guaranteed interest and similar 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 September 30, 2023, and December 31, 2022, the remaining guaranteed interest and similar contracts carrying value approximated fair value. The inputs used to measure the fair value of these other liabilities 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 the 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 modified coinsurance 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 the 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, mortgage loans electing the fair value option are classified as Level 3 within the fair value hierarchy. 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 September 30, December 31, 2023 2022 Fair value $ 315 $ 487 Aggregate contractual principal 341 514 As of September 30, 2023, and December 31, 2022, no loans for which the fair value option was elected were in non-accrual status, and no ne 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 September 30, 2023, or December 31, 2022. The following summarizes our financial instruments carried at fair value (in millions) on a recurring basis by the fair value hierarchy levels: As of September 30, 2023 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 $ - $ 72,294 $ 6,467 $ 78,761 U.S. government bonds 332 40 - 372 State and municipal bonds - 4,638 33 4,671 Foreign government bonds - 270 - 270 RMBS - 1,857 12 1,869 CMBS - 1,701 - 1,701 ABS - 11,051 1,337 12,388 Hybrid and redeemable preferred securities 45 262 48 355 Trading securities - 2,399 350 2,749 Equity securities 1 245 137 383 Mortgage loans on real estate - - 315 315 Derivative investments (1) - 8,918 877 9,795 Other investments – short-term investments - 170 - 170 Cash and invested cash - 2,285 - 2,285 MRB assets - - 4,108 4,108 Other assets: Ceded MRBs - - 273 273 Reinsurance-related embedded derivatives - 933 - 933 Indexed annuity ceded embedded derivatives - - 586 586 LPR ceded derivative - - 184 184 Separate account assets 429 145,381 - 145,810 Total assets $ 807 $ 252,444 $ 14,727 $ 267,978 Liabilities Policyholder account balances – indexed annuity and IUL contracts embedded derivatives $ - $ - $ ( 7,174 ) $ ( 7,174 ) MRB liabilities - - ( 1,385 ) ( 1,385 ) Other liabilities: Ceded MRBs - - ( 1,736 ) ( 1,736 ) Derivative liabilities (1) - ( 4,105 ) ( 864 ) ( 4,969 ) Total liabilities $ - $ ( 4,105 ) $ ( 11,159 ) $ ( 15,264 ) As of December 31, 2022 Quoted Prices in Active Markets for Significant Significant Identical Observable Unobservable Total Assets Inputs Inputs Fair (Level 1) (Level 2) (Level 3) Value Assets Investments: Fixed maturity AFS securities: Corporate bonds $ - $ 73,980 $ 5,186 $ 79,166 U.S. government bonds 332 19 - 351 State and municipal bonds - 4,850 35 4,885 Foreign government bonds - 311 - 311 RMBS - 1,835 1 1,836 CMBS - 1,667 - 1,667 ABS - 9,782 1,117 10,899 Hybrid and redeemable preferred securities 40 261 49 350 Trading securities - 2,865 581 3,446 Equity securities - 274 153 427 Mortgage loans on real estate - - 487 487 Derivative investments (1) - 5,929 605 6,534 Other investments – short-term investments - 30 - 30 Cash and invested cash - 2,499 - 2,499 MRB assets - - 2,807 2,807 Other assets: Ceded MRBs - - 540 540 Reinsurance-related embedded derivatives - 681 - 681 Indexed annuity ceded embedded derivatives - - 525 525 LPR ceded derivative - - 212 212 Separate account assets 412 143,124 - 143,536 Total assets $ 784 $ 248,107 $ 12,298 $ 261,189 Liabilities Policyholder account balances – indexed annuity and IUL contracts embedded derivatives $ - $ - $ ( 4,783 ) $ ( 4,783 ) MRB liabilities - - ( 2,078 ) ( 2,078 ) Other liabilities: Ceded MRBs - - ( 246 ) ( 246 ) Derivative liabilities (1) - ( 2,666 ) ( 603 ) ( 3,269 ) Total liabilities $ - $ ( 2,666 ) $ ( 7,710 ) $ ( 10,376 ) (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. 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. The summary schedule excludes changes to MRB assets and MRB liabilities as these balances are rolled forward in Note 10. For the Three Months Ended September 30, 2023 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 Value Investments: (2) Fixed maturity AFS securities: Corporate bonds $ 6,177 $ ( 7 ) $ ( 13 ) $ 353 $ ( 43 ) $ 6,467 State and municipal bonds 36 ( 2 ) ( 1 ) - - 33 RMBS 6 - ( 1 ) - 7 12 ABS 1,208 - ( 5 ) 247 ( 113 ) 1,337 Hybrid and redeemable preferred securities 60 - 1 - ( 13 ) 48 Trading securities 351 ( 3 ) - ( 4 ) 6 350 Equity securities 125 12 - - - 137 Mortgage loans on real estate 404 2 ( 3 ) ( 88 ) - 315 Derivative investments 31 ( 26 ) - 8 - 13 Other assets: Ceded MRBs (3) 401 ( 128 ) - - - 273 Indexed annuity ceded embedded derivatives (4) 603 ( 49 ) - 32 - 586 LPR ceded derivative (5) 202 ( 18 ) - - - 184 Policyholder account balances – indexed annuity and IUL contracts embedded derivatives (4) ( 7,600 ) 621 - ( 195 ) - ( 7,174 ) Other liabilities – ceded MRBs (3) ( 1,440 ) ( 296 ) - - - ( 1,736 ) Total, net $ 564 $ 106 $ ( 22 ) $ 353 $ ( 156 ) $ 845 For the Three Months Ended September 30, 2022 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 Value Investments: (2) Fixed maturity AFS securities: Corporate bonds $ 8,531 $ 1 $ ( 512 ) $ ( 34 ) $ ( 16 ) $ 7,970 Foreign government bonds 37 - ( 3 ) - - 34 RMBS 1 - - 9 - 10 ABS 1,153 - ( 38 ) 123 ( 147 ) 1,091 Hybrid and redeemable preferred securities 99 ( 1 ) ( 34 ) ( 6 ) - 58 Trading securities 620 ( 24 ) - 3 3 602 Equity securities 145 24 - ( 1 ) - 168 Mortgage loans on real estate 528 ( 1 ) ( 4 ) ( 28 ) - 495 Derivative investments 3 3 - - ( 1 ) 5 Other assets: Ceded MRBs (3) 2,337 ( 722 ) - - - 1,615 Indexed annuity ceded embedded derivatives (4) 440 ( 47 ) - 63 - 456 LPR ceded derivative (5) 215 ( 24 ) - - - 191 Policyholder account balances – indexed annuity and IUL contracts embedded derivatives (4) ( 3,366 ) 394 - ( 222 ) - ( 3,194 ) Other liabilities – ceded MRBs (3) ( 115 ) ( 54 ) - - - ( 169 ) Total, net $ 10,628 $ ( 451 ) $ ( 591 ) $ ( 93 ) $ ( 161 ) $ 9,332 For the Nine Months Ended September 30, 2023 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 Value Investments: (2) Fixed maturity AFS securities: Corporate bonds $ 5,186 $ ( 19 ) $ 2 $ 1,302 $ ( 4 ) $ 6,467 State and municipal bonds 35 ( 4 ) 3 ( 1 ) - 33 RMBS 1 - ( 1 ) 5 7 12 CMBS - - - ( 4 ) 4 - ABS 1,117 - ( 3 ) 567 ( 344 ) 1,337 Hybrid and redeemable preferred securities 49 - ( 2 ) ( 2 ) 3 48 Trading securities 581 ( 1 ) - ( 236 ) 6 350 Equity securities 153 ( 17 ) - 1 - 137 Mortgage loans on real estate 487 - 2 ( 174 ) - 315 Derivative investments 2 ( 28 ) - 8 31 13 Other assets: Ceded MRBs (3) 540 ( 267 ) - - - 273 Indexed annuity ceded embedded derivatives (4) 525 ( 37 ) - 98 - 586 LPR ceded derivative (5) 212 ( 28 ) - - - 184 Policyholder account balances – indexed annuity and IUL contracts embedded derivatives (4) ( 4,783 ) ( 1,669 ) - ( 722 ) - ( 7,174 ) Other liabilities – ceded MRBs (3) ( 246 ) ( 1,490 ) - - - ( 1,736 ) Total, net $ 3,859 $ ( 3,560 ) $ 1 $ 842 $ ( 297 ) $ 845 For the Nine Months Ended September 30, 2022 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 Value Investments: (2) Fixed maturity AFS securities: Corporate bonds $ 8,801 $ 2 $ ( 1,514 ) $ 583 $ 98 $ 7,970 Foreign government bonds 41 - ( 7 ) - - 34 RMBS 3 - - 21 ( 14 ) 10 CMBS - - - 17 ( 17 ) - ABS 870 - ( 98 ) 576 ( 257 ) 1,091 Hybrid and redeemable preferred securities 90 ( 1 ) ( 25 ) ( 6 ) - 58 Trading securities 828 ( 82 ) - ( 143 ) ( 1 ) 602 Equity securities 91 54 - 23 - 168 Mortgage loans on real estate 739 ( 16 ) ( 10 ) ( 218 ) - 495 Derivative investments 21 5 ( 6 ) - ( 15 ) 5 Other assets: Ceded MRBs (3) 4,114 ( 2,499 ) - - - 1,615 Indexed annuity ceded embedded derivatives (4) 528 ( 214 ) - 142 - 456 LPR ceded derivative (5) 318 ( 127 ) - - - 191 Policyholder account balances – indexed annuity and IUL contracts embedded derivatives (4) ( 6,131 ) 3,244 - ( 307 ) - ( 3,194 ) Other liabilities – ceded MRBs (3) ( 17 ) ( 152 ) - - - ( 169 ) Total, net $ 10,296 $ 214 $ ( 1,660 ) $ 688 $ ( 206 ) $ 9,332 (1) The changes in fair value of the interest rate swaps are offset by an adjustment to derivative investments (see Note 6). (2) Amortization and accretion of premiums and discounts are included in net investment income on the 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 the Consolidated Statements of Comprehensive Income (Loss). (3) Gains (losses) from the changes in fair value are included in market risk benefit gain (loss) on the Consolidated Statements of Comprehensive Income (Loss). (4) Gains (losses) from the changes in fair value are included in realized gain (loss) on the Consolidated Statements of Comprehensive Income (Loss). (5) Gains (losses) from the changes in fair value are included in benefits on the Consolidated Statements of Comprehensive Income (Loss). The following provides the components of the items included in issuances, sales, maturities, settlements and calls, net, (in millions) as reported above: For the Three Months Ended September 30, 2023 Issuances Sales Maturities Settlements Calls Total Investments: Fixed maturity AFS securities: Corporate bonds $ 435 $ ( 47 ) $ - $ ( 35 ) $ - $ 353 ABS 279 - - ( 32 ) - 247 Trading securities - - - ( 4 ) - ( 4 ) Mortgage loans on real estate 1 - - ( 89 ) - ( 88 ) Derivative investments 9 - ( 1 ) - - 8 Other assets – indexed annuity ceded embedded derivatives 28 - - 4 - 32 Policyholder account balances – indexed annuity and IUL contracts embedded derivatives ( 231 ) - - 36 - ( 195 ) Total, net $ 521 $ ( 47 ) $ ( 1 ) $ ( 120 ) $ - $ 353 For the Three Months Ended September 30, 2022 Issuances Sales Maturities Settlements Calls Total Investments: Fixed maturity AFS securities: Corporate bonds $ 207 $ ( 138 ) $ ( 50 ) $ ( 51 ) $ ( 2 ) $ ( 34 ) RMBS 9 - - - - 9 ABS 213 - - ( 90 ) - 123 Hybrid and redeemable preferred securities - - - - ( 6 ) ( 6 ) Trading securities 11 - - ( 8 ) - 3 Equity securities - ( 1 ) - - - ( 1 ) Mortgage loans on real estate 2 - - ( 30 ) - ( 28 ) Other assets – indexed annuity ceded embedded derivatives 37 - - 26 - 63 Policyholder account balances – indexed annuity and IUL contracts embedded derivatives ( 181 ) - - ( 41 ) - ( 222 ) Total, net $ 298 $ ( 139 ) $ ( 50 ) $ ( 194 ) $ ( 8 ) $ ( 93 ) For the Nine Months Ended September 30, 2023 Issuances Sales Maturities Settlements Calls Total Investments: Fixed maturity AFS securities: Corporate bonds $ 1,825 $ ( 164 ) $ ( 34 ) $ ( 314 ) $ ( 11 ) $ 1,302 State and municipal bonds - ( 1 ) - - - ( 1 ) RMBS 5 - - - - 5 CMBS - - - ( 4 ) - ( 4 ) ABS 736 ( 2 ) - ( 167 ) - 567 Hybrid and redeemable preferred securities - - - - ( 2 ) ( 2 ) Trading securities - ( 155 ) - ( 81 ) - ( 236 ) Equity securities 1 - - - - 1 Mortgage loans on real estate 5 - - ( 179 ) - ( 174 ) Derivative investments 9 - ( 1 ) - - 8 Other assets – indexed annuity ceded embedded derivatives 112 - - ( 14 ) - 98 Policyholder account balances – indexed annuity and IUL contracts embedded derivatives ( 846 ) - - 124 - ( 722 ) Total, net $ 1,847 $ ( 322 ) $ ( 35 ) $ ( 635 ) $ ( 13 ) $ 842 For the Nine Months Ended September 30, 2022 Issuances Sales Maturities Settlements Calls Total Investments: Fixed maturity AFS securities: Corporate bonds $ 1,105 $ ( 236 ) $ ( 74 ) $ ( 179 ) $ ( 33 ) $ 583 RMBS 21 - - - - 21 CMBS 17 - - - - 17 ABS 768 - - ( 185 ) ( 7 ) 576 Hybrid and redeemable preferred securities - - - - ( 6 ) ( 6 ) Trading securities 282 ( 220 ) - ( 205 ) - ( 143 ) Equity securities 32 ( 9 ) - - - 23 Mortgage loans on real estate 14 - - ( 232 ) - ( 218 ) Other assets – indexed annuity ceded embedded derivatives 76 - - 66 - 142 Policyholder account balances – indexed annuity and IUL contracts embedded derivatives ( 410 ) - - 103 - ( 307 ) Total, net $ 1,905 $ ( 465 ) $ ( 74 ) $ ( 632 ) $ ( 46 ) $ 688 The following summarizes changes in unrealized gains (losses) included in net income related to financial instruments carried at fair value classified within Level 3 that we still held (in millions): For the Three For the Nine Months Ended Months Ended September 30, September 30, 2023 2022 2023 2022 Trading securities (1) $ ( 3 ) $ ( 23 ) $ ( 2 ) $ ( 81 ) Equity securities (1) 12 23 ( 17 ) 54 Mortgage loans on real estate (1) 2 ( 1 ) ( 1 ) ( 16 ) Derivative investments (1) ( 25 ) 2 ( 27 ) 5 MRBs (2) 1,001 56 1,133 ( 795 ) Other assets – LPR ceded derivative (3) ( 18 ) ( 24 ) ( 28 ) ( 127 ) Embedded derivatives – indexed annuity and IUL contracts (1) ( 4 ) ( 55 ) ( 223 ) 4 Total, net $ 965 $ ( 22 ) $ 835 $ ( 956 ) (1) Included in realized gain (loss) on the Consolidated Statements of Comprehensive Income (Loss). (2) Included in market risk benefit gain (loss) on the Consolidated Statements of Comprehensive Income (Loss). (3) Included in benefits on the Consolidated Statements of Comprehensive Income (Loss). The following summarizes changes in unrealized gains (losses) included in OCI, net of tax, related to financial instruments carried at fair value classified within Level 3 that we still held (in millions): For the Three For the Nine Months Ended Months Ended September 30, September 30, 2023 2022 2023 2022 Fixed maturity AFS securities: Corporate bonds $ ( 17 ) $ ( 517 ) $ ( 5 ) $ ( 1,521 ) State and municipal bonds - - 3 - Foreign government bonds - ( 2 ) - ( 7 ) RMBS ( 1 ) - ( 1 ) - ABS ( 5 ) ( 39 ) ( 4 ) ( 101 ) Hybrid and redeemable preferred securities - ( 35 ) ( 2 ) ( 25 ) Mortgage loans on real estate ( 3 ) ( 4 ) 1 ( 10 ) Total, net $ ( 26 ) $ ( 597 ) $ ( 8 ) $ ( 1,664 ) 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 September 30, 2023 September 30, 2022 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 $ 36 $ ( 79 ) $ ( 43 ) $ 37 $ ( 53 ) $ ( 16 ) RMBS 12 ( 5 ) 7 - - - ABS - ( 113 ) ( 113 ) 15 ( 162 ) ( 147 ) Hybrid and redeemable preferred securities - ( 13 ) ( 13 ) - - - Trading securities 6 - 6 4 ( 1 ) 3 Derivative investments - - - - ( 1 ) ( 1 ) Total, net $ 54 $ ( 210 ) $ ( 156 ) $ 56 $ ( 217 ) $ ( 161 ) 1 For the Nine For the Nine Months Ended Months Ended September 30, 2023 September 30, 2022 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 $ 194 $ ( 198 ) $ ( 4 ) $ 265 $ ( 167 ) $ 98 RMBS 12 ( 5 ) 7 - ( 14 ) ( 14 ) CMBS 4 - 4 - ( 17 ) ( 17 ) ABS 2 ( 346 ) ( 344 ) 16 ( 273 ) ( 257 ) Hybrid and redeemable preferred securities 16 ( 13 ) 3 - - - Trading securities 6 - 6 4 ( 5 ) ( 1 ) Derivative investments 31 - 31 - ( 15 ) ( 15 ) Total, net $ 265 $ ( 562 ) $ ( 297 ) $ 285 $ ( 491 ) $ ( 206 ) Transfers into and out of Level 3 are generally the result of observable market information on financial instruments no longer being available or becoming available to our pricing vendors. For the three and nine months ended September 30, 2023 and 2022, transfers in and out of Level 3 were attributable primarily to the financial instruments’ 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 September 30, 2023: 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 $ 186 Discounted cash flow Liquidity/duration adjustment (2) ( 0.1 ) % - 3.7 % 2.0 % State and municipal bonds 33 Discounted cash flow Liquidity/duration adjustment (2) 0.8 % - 1.9 % 1.8 % ABS 13 Discounted cash flow Liquidity/duration adjustment (2) 1.7 % - 1.7 % 1.7 % Hybrid and redeemable preferred securities 7 Discounted cash flow Liquidity/duration adjustment (2) 1.3 % - 1.5 % 1.4 % Equity securities 4 Discounted cash flow Liquidity/duration adjustment (2) 4.5 % - 4.5 % 4.5 % MRB assets 4,108 Other assets – ceded MRBs 273 Discounted cash flow Lapse (3) 1 % - 30 % (10) Utilization of GLB withdrawals (4) 85 % - 100 % 94 % Claims utilization factor (5) 60 % - 100 % (10) Premiums utilization factor (5) 80 % - 115 % (10) Non-performance risk (6) 0.74 % - 2.56 % 2.15 % Mortality (7) (9) (10) Volatility (8) 1 % - 29 % 13.65 % Other assets – indexed annuity ceded embedded derivatives 586 Discounted cash flow Lapse (3) 0 % - 9 % (10) Mortality (7) (9) (10) Other assets – LPR ceded derivative 184 Discounted cash flow Lapse (3) 0 % - 1.55 % (10) Non-performance risk (6) 0.74 % - 2.56 % 1.94 % Mortality (7) (9) (10) Liabilities Policyholder account balances – indexed annuity contracts embedded derivatives $ ( 7,163 ) Discounted cash flow Lapse (3) 0 % - 9 % (10) Mortality (7) (9) (10) MRB liabilities ( 1,385 ) Other liabilities – ceded MRBs ( 1,736 ) Discounted cash flow Lapse (3) 1 % - 30 % (10) Utilization of GLB withdrawals (4) 85 % - 100 % 94 % Claims utilization factor (5) 60 % - 100 % (10) Premiums utilization factor (5) 80 % - 115 % (10) Non-performance risk (6) 0.74 % - 2.56 % 2.15 % Mortality (7) (9) (10) Volatility (8) 1 % - 29 % 13.65 % The following summarizes the fair value (in millions), valuation techniques and significant unobservable inputs of the Level 3 fair value measurements as of December 31, 2022: 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 $ 201 Discounted cash flow Liquidity/duration adjustment (2) ( 0.2 ) % - 4.2 % 2.1 % State and municipal bonds 35 Discounted cash flow Liquidity/duration adjustment (2) 1.2 % - 2.4 % 2.3 % ABS 15 Discounted cash flow Liquidity/duration adjustment (2) 1.4 % - 1.4 % 1.4 % Hybrid and redeemable preferred securities 3 Discounted cash flow Liquidity/duration adjustment (2) 1.5 % - 1.5 % 1.5 % Equity securities 4 Discounted cash flow Liquidity/duration adjustment (2) 4.5 % - 4.5 % 4.5 % MRB assets 2,807 Other assets – ceded MRBs 540 Discounted cash flow Lapse (3) 1 % - 30 % (10) Utilization of GLB withdrawals (4) 85 % - 100 % 94 % Claims utilization factor (5) 60 % - 100 % (10) Premiums utilization factor (5) 80 % - 115 % (10) Non-performance risk (6) 0.35 % - 2.41 % 1.73 % Mortality (7) (9) (10) Volatility (8) 1 % - 28 % 14.47 % Other assets – indexed annuity ceded embedded derivatives 525 Discounted cash flow Lapse (3) 0 % - 9 % (10) Mortality (7) (9) (10) Other assets – LPR ceded derivative 212 Discounted cash flow Lapse (3) 0 % - 1.55 % (10) Non-performance risk (6) 0.35 % - 2.41 % 1.75 % Mortality (7) (9) (10) Liabilities Policyholder account balances – indexed annuity contracts embedded derivatives $ ( 4,845 ) Discounted cash flow Lapse (3) 0 % - 9 % (10) Mortality (7) (9) (10) MRB liabilities ( 2,078 ) Other liabilities – ceded MRBs ( 246 ) Discounted cash flow Lapse (3) 1 % - 30 % (10) Utilization of GLB withdrawals (4) 85 % - 100 % 94 % Claims utilization factor (5) 60 % - 100 % (10) Premiums utilization factor (5) 80 % - 115 % (10) Non-performance risk (6) 0.35 % - 2.41 % 1.73 % Mortality (7) (9) (10) Volatility (8) 1 % - 28 % 14.47 % (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 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 lapses during the surrender charge period. (4) The utilization of GLB withdrawals input represents the estimated percentage of policyholders that utilize the GLB withdrawal riders. (5) The utilization factors are applied to the present value of claims or premiums, as appropriate, in the MRB calculation to estimate the impact of inefficient GLB withdrawal behavior, including taking less than or more than the maximum GLB withdrawal. (6) The non-performance risk input represents the estimated additional credit spread that market participants would apply to the market observable discount rate when pricing a contract. The non-performance risk input was weighted by the absolute value of the sensitivity of the reserve to the non-performance risk assumption. The non-performance risk input for LPR ceded derivative was weighted using a simple average. (7) The mortality 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. 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 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, utilization factors or mortality. 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 contracts embedded derivatives – For direct embedded derivatives, an increase in the lapse or mortality 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, non-performance risk or mortality inputs would have resulted in an increase in the fair value measurement. MRBs – Assuming our MRBs are in a liability position: an increase in our lapse, non-performance risk or mortality inputs would have resulted in a decrease in the fair value measurement except for policies with GDB riders only, an increase in mortality 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. |
Contingencies and Commitments
Contingencies and Commitments | 9 Months Ended |
Sep. 30, 2023 | |
Contingencies and Commitments [Abstract] | |
Contingencies and Commitments | 15. Contingencies and Commitments Contingencies 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 may initiate legal proceedings, as necessary, under these agreements in order to protect our contractual rights. Additionally, reinsurers have initiated, and may in the future initiate, legal proceedings against us. While this may impact the Life Insurance segment, we believe it is unlikely the outcome of these disputes would have a material impact on the consolidated financial statements. 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 September 30, 2023. 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 September 30, 2023, 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 $ 190 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 some of these matters. Although a loss is believed to be reasonably possible for these matters, for some of 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 the consolidated financial statements, but, based on information currently known, management does not believe those cases are likely to have such an impact. 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, on September 25, 2023, the court granted in part and denied in part. Plaintiff filed an amended complaint on October 10, 2023. We are vigorously defending this matter. 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 universal life insurance policies originally issued by Jefferson-Pilot (now LNL). Among other things, 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, Case No. 2:16-cv-06605-GJP, is a consolidated litigation matter related to multiple putative class action cases that were consolidated by an order dated March 20, 2017. Plaintiffs purport to own certain universal life insurance policies originally issued by Jefferson-Pilot (now LNL). Among other things, plaintiffs allege that LNL and LNC breached the terms of policyholders’ contracts by increasing non-guaranteed cost of insurance rates beginning in 2016. Plaintiffs sought to represent classes of policyowners and sought damages on their behalf. On August 9, 2022, the court denied plaintiffs’ motion for class certification. The parties participated in a mediation on December 13, 2022, and subsequently reached a settlement. On January 26, 2023, the parties informed the presiding judge of a class settlement in this action, subject to final documentation and court approval. On March 24, 2023, plaintiffs filed a motion for preliminary approval of the class settlement, which was granted by the court on June 14, 2023. The provisional settlement, which was subject to both preliminary and final approval of the court, consisted of $ 117.75 million in pre-tax cash (in the aggregate for both this litigation and the In re: Lincoln National 2017 COI Rate Litigation matter discussed immediately below) and a five-year cost of insurance rate freeze, among other terms. After certain policyholders timely opted out or otherwise excluded themselves from the settlement class with respect to certain policies, the pre-tax cash settlement fund was reduced to $ 109.96 million. The court granted final approval of the settlement on October 5, 2023. Certain of the policyholders who did not participate in the settlement are plaintiffs in the Brighton Trustees, LLC, et al. v. The Lincoln National Life Insurance Company discussed further below. The remaining policyholders who did not participate in the settlement may bring individual actions in the future to the extent they have not already done so . In re: Lincoln National 2017 COI Rate Litigation , pending in the U.S. District Court for the Eastern District of Pennsylvania, Case No. 2:17-cv-04150, is a consolidated litigation matter related to multiple putative class action cases that were consolidated by an order dated March 28, 2018. Plaintiffs purport to own certain universal life insurance policies originally issued by Jefferson-Pilot (now LNL). Among other things, plaintiffs allege that LNL and LNC breached the terms of policyholders’ contracts by increasing non-guaranteed cost of insurance rates beginning in 2017. Plaintiffs sought to represent classes of policyholders and sought damages on their behalf. On August 9, 2022, the court denied plaintiffs’ motion for class certification. The parties participated in a mediation on December 13, 2022, and subsequently reached a settlement. On January 26, 2023, the parties informed the presiding judge of a class settlement in this action, subject to final documentation and court approval. On March 24, 2023, plaintiffs filed a motion for preliminary approval of the class settlement, which was granted by the court on June 14, 2023. The provisional settlement, which was subject to both preliminary and final approval of the court, consists of $ 117.75 million in pre-tax cash (in the aggregate for both this litigation and the In re: Lincoln National COI Litigation matter discussed immediately above) and a five-year cost of insurance rate freeze, among other terms. After certain policyholders timely opted out or otherwise excluded themselves from the settlement class with respect to certain policies, the pre-tax cash settlement fund was reduced to $ 109.96 million. The court granted final approval of the settlement on October 5, 2023. Certain of the policyholders who did not participate in the settlement are plaintiffs in the Brighton Trustees, LLC, et al. v. The Lincoln National Life Insurance Company discussed further below. The remaining policyholders who did not participate in the settlement may bring individual actions in the future to the extent they have not already done so. 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). Among other things, plaintiffs allege that LNL and LNC breached the terms of policyholders’ contracts when LNL 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. On March 31, 2022, the court issued an order granting plaintiff’s motion for class certification and certified a class of all current or former owners of six universal life insurance products issued by LLANY that were assessed a cost of insurance charge any time on or after June 27, 2013. Plaintiff seeks damages on behalf of the class. On April 19, 2023, LLANY filed a motion for summary judgment, which remains pending. We are vigorously defending this matter. Angus v. The Lincoln National Life Insurance Company , pending in the U.S. District Court for the Eastern District of Pennsylvania, No. 2:22-cv-01878, is a putative class action filed on May 13, 2022. Plaintiff alleges that defendant LNL breached the terms of her life insurance policy by deducting non-guaranteed cost of insurance charges in excess of what is permitted by the policies. Plaintiff seeks to represent all owners of universal life insurance policies issued or insured 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 their behalf. Breach of contract is the only cause of action asserted. On August 26, 2022, LNL filed a motion to dismiss. We are vigorously defending this matter. Brighton Trustees, LLC, et al. v. The Lincoln National Life Insurance Company , pending in the U.S. District Court for the Eastern District of Pennsylvania, Case No. 2:23-cv-02251, is a civil action filed on April 20, 2023. On June 12, 2023, the U.S. District Court for the Northern District of Indiana granted a motion filed by LNL to transfer the case to the U.S. District Court for the Eastern District of Pennsylvania. Plaintiffs purport to own universal life insurance policies originally issued by Jefferson-Pilot (now LNL). Among other things, plaintiffs allege that LNL breached the terms of policyholders’ contracts and converted property when it increased non-guaranteed cost of insurance rates beginning in 2016. 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. On July 2, 2021, the court granted, with prejudice, LLANY’s November 2020 motion to dismiss this matter. Plaintiff filed a notice of appeal on July 28, 2021, and on September 26, 2022, the U.S. Court of Appeals for the Second Circuit reserved its decision and certified a question to the New York Court of Appeals. On October 20, 2022, the New York Court of Appeals accepted the question. On October 19, 2023, the New York Court of Appeals answered the question in LLANY’s favor and transmitted the decision to the U.S. Court of Appeals for the Second Circuit. Henry Morgan et al. v. Lincoln National Corporation d/b/a Lincoln Financial Group, et al , filed in the District Court of the 14 th Judicial District of Dallas County, Texas, No. DC-23-02492, is a putative class action that was filed on February 22, 2023. Plaintiffs Henry Morgan, Susan Smith, Charles Smith, Laura Seale, Terri Cogburn, Laura Baesel, Kathleen Walton, Terry Warner, and Toni Hale (“Plaintiffs”) allege on behalf of a putative class that Lincoln National Corporation d/b/a Lincoln Financial Group, LNL and LLANY (together, “Lincoln”), FMR, LLC, and Fidelity Product Services, LLC (“Fidelity”) created and marketed misleading and deceptive insurance products with attributes of investment products. The putative class comprises all individuals and entities who purchased Lincoln OptiBlend products that allocated account monies to the 1-Year Fidelity AIM Dividend Participation Account, between January 1, 2020, to December 31, 2022. Plaintiffs assert the following claims individually and on behalf of the class, (1) violations of the Texas Deceptive Trade Practices Act against Lincoln; (2) common-law fraud against Lincoln; (3) negligent misrepresentation against Lincoln and Fidelity; and (4) aiding and abetting fraud against Fidelity. Plaintiffs allege they suffered damages from “a missed investment return of approximately 5-6%” and mitigation damages. They seek actual, consequential and punitive damages, as well as pre-judgment and post-judgment interest, attorney’s fees, and litigation costs. On March 31, 2023, the Lincoln defendants filed a notice of removal removing the action from the 14 th Judicial District of Dallas County, Texas, to the United States District Court for the Northern District of Texas, Dallas Division. On May 8, 2023, the Lincoln defendants and the Fidelity defendants filed motions to dismiss, which remain pending. We are vigorously defending this matter. |
Shares and Stockholder's Equity
Shares and Stockholder's Equity | 9 Months Ended |
Sep. 30, 2023 | |
Shares and Stockholder's Equity [Abstract] | |
Shares and Stockholder's Equity | 16. Shares and Stockh older’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 Nine Months Ended September 30, 2023 2022 Unrealized Gain (Loss) on Fixed Maturity AFS Securities and Certain Other Investments Balance as of beginning-of-year $ ( 8,526 ) $ 9,153 Unrealized holding gains (losses) arising during the period ( 2,781 ) ( 25,928 ) Change in foreign currency exchange rate adjustment ( 21 ) ( 620 ) Change in future contract benefits and policyholder account balances 491 2,395 Income tax benefit (expense) 478 5,159 Less: Reclassification adjustment for gains (losses) included in net income (loss) ( 3,704 ) ( 9 ) Income tax benefit (expense) 778 2 Balance as of end-of-period $ ( 7,433 ) $ ( 9,834 ) Unrealized Gain (Loss) on Derivative Instruments Balance as of beginning-of-year $ 301 $ 258 Unrealized holding gains (losses) arising during the period 10 ( 214 ) Change in foreign currency exchange rate adjustment 30 623 Income tax benefit (expense) ( 9 ) ( 87 ) Less: Reclassification adjustment for gains (losses) included in net income (loss) 46 78 Income tax benefit (expense) ( 10 ) ( 16 ) Balance as of end-of-period $ 296 $ 518 Market Risk Benefit Non-Performance Risk Gain (Loss) Balance as of beginning-of-year $ 1,739 $ 1,951 Adjustment arising during the period ( 944 ) 285 Income tax benefit (expense) 202 ( 61 ) Balance as of end-of-period $ 997 $ 2,175 Policyholder Liability Discount Rate Remeasurement Gain (Loss) Balance as of beginning-of-year $ 790 $ ( 1,101 ) Adjustment arising during the period 326 2,470 Income tax benefit (expense) ( 69 ) ( 527 ) Balance as of end-of-period $ 1,047 $ 842 Funded Status of Employee Benefit Plans Balance as of beginning-of-year $ ( 17 ) $ ( 11 ) Balance as of end-of-period $ ( 17 ) $ ( 11 ) The following summarizes the reclassifications out of AOCI (in millions) and the associated line item on the Consolidated Statements of Comprehensive Income (Loss): For the Nine Months Ended September 30, 2023 2022 Unrealized Gain (Loss) on Fixed Maturity AFS Securities and Certain Other Investments Reclassification $ ( 4,293 ) $ ( 9 ) Realized gain (loss) Associated change in future contract benefits 589 - Benefits Reclassification before income tax benefit (expense) ( 3,704 ) ( 9 ) Income (loss) before taxes Income tax benefit (expense) 778 2 Federal income tax expense (benefit) Reclassification, net of income tax $ ( 2,926 ) $ ( 7 ) Net income (loss) Unrealized Gain (Loss) on Derivative Instruments Interest rate contracts $ - $ 1 Net investment income Foreign currency contracts 42 48 Net investment income Foreign currency contracts 4 29 Realized gain (loss) Reclassifications before income tax benefit (expense) 46 78 Income (loss) before taxes Income tax benefit (expense) ( 10 ) ( 16 ) Federal income tax expense (benefit) Reclassifications, net of income tax $ 36 $ 62 Net income (loss) |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2023 | |
Segment Information [Abstract] | |
Segment Information | 17. Segmen t Information We provide products and services and report results through our Annuities, Life Insurance, Group Protection and Retirement Plan Services segments. We also have Other Operations, which includes the financial data for operations that are not directly related to the business segments. Our reporting segments reflect the manner by which our chief operating decision makers view and manage the business. A discussion of these segments and Other Operations is found in Note 21 in our 2022 Form 10-K, as updated by Note 20 in the May 2023 Form 8-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: Items related to annuity product features, which include changes in MRBs, including gains and losses and benefit payments, changes in the fair value of the derivative instruments we hold to hedge GLB and GDB riders, net of fee income allocated to support the cost of hedging them, and changes in the fair value of the embedded derivative liabilities of our indexed annuity contracts and the associated index options we hold to hedge them, including collateral expense associated with the hedge program (collectively, “net annuity product features”); Items related to life insurance product features, which include changes in the fair value of derivatives we hold as part of VUL hedging, changes in reserves resulting from benefit ratio unlocking associated with the impact of capital markets, and changes in the fair value of the embedded derivative liabilities of our IUL contracts and the associated index options we hold to hedge them (collectively, “net life insurance product features”); Credit loss-related adjustments on fixed maturity AFS securities, mortgage loans on real estate and reinsurance-related assets (“credit loss-related adjustments”); Changes in the fair value of equity securities, certain derivatives, certain other investments and realized gains (losses) on sales, disposals and impairments of financial assets (collectively, “investment gains (losses)”); Changes in the fair value of reinsurance-related embedded derivatives, trading securities and mortgage loans on real estate electing the fair value option (“changes in the fair value of reinsurance-related embedded derivatives, trading securities and certain mortgage loans”); GLB rider fees ceded to LNBAR; Income (loss) from the initial adoption of new accounting standards, regulations and policy changes; Income (loss) from reserve changes, net of related amortization, on business sold through reinsurance; Transaction and integration costs related to mergers and acquisitions including the acquisition or divestiture, through reinsurance or other means, of businesses or blocks of business; Gains (losses) on modification or early extinguishment of debt; Losses from the impairment of intangible assets and gains (losses) on other non-financial assets; and Income (loss) from discontinued operations. Operating revenues represent GAAP revenues excluding the pre-tax effects of the following items, as applicable: Changes in the fair value of the derivative instruments we hold to hedge GLB and GDB riders, net of fee income allocated to support the cost of hedging them, and changes in the fair value of the embedded derivative liabilities of our indexed annuity and IUL contracts and the associated index options we hold to hedge them (collectively, “revenue adjustments from annuity and life insurance product features”); Credit loss-related adjustments; Investment gains (losses); Changes in the fair value of reinsurance-related embedded derivatives, trading securities and certain mortgage loans; GLB rider fees ceded to LNBAR; Revenue adjustments from the initial adoption of new accounting standards; 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 the Consolidated Statements of Comprehensive Income (Loss) (in millions): For the Three For the Nine Months Ended Months Ended September 30, September 30, 2023 2022 2023 2022 Revenues Operating revenues: Annuities $ 1,095 $ 1,021 $ 3,236 $ 3,071 Life Insurance 1,627 1,536 4,920 4,756 Group Protection 1,387 1,332 4,174 3,958 Retirement Plan Services 321 312 972 936 Other Operations 32 28 106 93 Revenue adjustments from annuity and life insurance product features 268 192 154 725 Credit loss-related adjustments ( 25 ) ( 132 ) ( 50 ) ( 120 ) Investment gains (losses) (1) ( 1,091 ) 13 ( 4,228 ) 4 Changes in the fair value of reinsurance-related embedded derivatives, trading securities and certain mortgage loans 190 193 251 633 GLB rider fees ceded to LNBAR ( 227 ) ( 231 ) ( 694 ) ( 701 ) Total revenues $ 3,577 $ 4,265 $ 8,841 $ 13,355 For the Three For the Nine Months Ended Months Ended September 30, September 30, 2023 2022 2023 2022 Net Income (Loss) Income (loss) from operations: Annuities $ 190 $ 225 $ 626 $ 727 Life Insurance ( 152 ) ( 1,945 ) ( 152 ) ( 1,946 ) Group Protection 67 12 246 15 Retirement Plan Services 39 43 120 149 Other Operations ( 76 ) ( 73 ) ( 203 ) ( 199 ) Net annuity product features, after-tax 951 184 1,212 ( 56 ) Net life insurance product features, after-tax (2) 196 20 308 16 Credit loss-related adjustments, after-tax ( 20 ) ( 104 ) ( 40 ) ( 95 ) Investment gains (losses), after-tax (1) ( 852 ) 10 ( 3,330 ) 3 Changes in the fair value of reinsurance-related embedded derivatives, trading securities and certain mortgage loans, after-tax 151 152 198 500 GLB rider fees ceded to LNBAR, after-tax ( 179 ) ( 182 ) ( 547 ) ( 554 ) Impairment of intangibles - ( 634 ) - ( 634 ) Transaction and integration costs related to mergers, acquisitions and divestitures, after-tax (3) - - ( 7 ) - Net income (loss) $ 315 $ ( 2,292 ) $ ( 1,569 ) $ ( 2,074 ) (1) Includes a $ 1.2 billion pre-tax ($ 909 million after-tax) and a $ 4.2 billion pre-tax ($ 3.3 billion after-tax) impairment of fixed maturity AFS securities in an unrealized loss position for the three and nine months ended September 30, 2023, respectively, resulting from the Company’s intent to sell these securities as part of the previously announced Fortitude Re reinsurance transaction. Within the investment portfolio anticipated to be sold in the transaction, there are additional fixed maturity AFS securities in an unrealized gain position of approximately $ 168 million after-tax as of September 30, 2023. Pursuant to the applicable accounting guidance, the Company impaired the securities in a loss position down to fair market value upon entry into the agreement in the second quarter and recognized additional impairment of certain of these securities during the third quarter due to higher interest rates. The Company will recognize a gain for any securities in an unrealized gain position at the time when the transaction closes. For more information, see Notes 4 and 8. (2) Includes $ 128 million and $ 458 million after-tax for the three and nine months ended September 30, 2023, respectively, related to the Fortitude Re reinsurance transaction. For more information, see Note 8. (3) Includes costs pertaining to the Fortitude Re reinsurance transaction. For more information, see Note 8. Other segment information (in millions) was as follows: As of As of September 30, December 31, 2023 2022 Assets Annuities $ 173,558 $ 165,711 Life Insurance 97,466 97,412 Group Protection 9,450 9,828 Retirement Plan Services 41,821 42,117 Other Operations 21,260 20,595 Total assets $ 343,555 $ 335,663 |
Realized Gain (Loss)
Realized Gain (Loss) | 9 Months Ended |
Sep. 30, 2023 | |
Realized Gain (Loss) [Abstract] | |
Realized Gain (Loss) | 18. Realized Gai n (Loss) Realized gain (loss) on the 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, VUL derivative and embedded derivative gains and losses, gains and losses on the sale of subsidiaries and businesses and net gains and losses on reinsurance-related 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 also net of allocations of investment gains and losses to certain policyholders, certain funds withheld on reinsurance arrangements and certain modified coinsurance arrangements for which we have a contractual obligation. Details underlying realized gain (loss) (in millions) were as follows: For the Three For the Nine Months Ended Months Ended September 30, September 30, 2023 2022 2023 2022 Fixed maturity AFS securities: Gross gains $ 1 $ 10 $ 34 $ 14 Gross losses ( 3 ) ( 14 ) ( 114 ) ( 23 ) Credit loss benefit (expense) (1) ( 1 ) ( 5 ) ( 16 ) ( 11 ) Intent to sell impairments (2) ( 1,150 ) - ( 4,213 ) - Realized gain (loss) on equity securities (3) 8 16 ( 20 ) ( 5 ) Credit loss benefit (expense) on mortgage loans on real estate ( 9 ) ( 9 ) ( 16 ) 5 Credit loss benefit (expense) on reinsurance-related assets (4) ( 15 ) ( 117 ) ( 19 ) ( 115 ) Realized gain (loss) on the mark-to-market on certain instruments (5)(6) 341 250 136 715 Indexed product derivative results (7) 4 ( 25 ) ( 199 ) 113 GLB rider fees ceded to LNBAR ( 227 ) ( 231 ) ( 693 ) ( 701 ) GLB and GDB hedge allowance 201 187 610 583 Other realized gain (loss) ( 17 ) ( 29 ) ( 3 ) ( 34 ) Total realized gain (loss) $ ( 867 ) $ 33 $ ( 4,513 ) $ 541 (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 impairments of certain fixed maturity AFS securities in an unrealized loss position, resulting from the Company’s intent to sell these securities as part of the Fortitude Re reinsurance transaction. Within the investment portfolio anticipated to be sold in the transaction, there are additional fixed maturity AFS securities in an unrealized gain position of approximately $ 212 million pre-tax as of September 30, 2023. Pursuant to the applicable accounting guidance, the Company impaired the securities in a loss position down to fair market value upon entry into the agreement in the second quarter and recognized additional impairment on certain of these securities during the third quarter due to higher interest rates. The Company will recognize a gain for any securities in an unrealized gain position at the time when the transaction closes. See Notes 4 and 8 for additional information. (3) Includes mark-to-market adjustments on equity securities still held of $ 9 million and $ 16 million for the three months ended September 30 , 2023 and 2022, respectively, and $( 22 ) million and less than $ 1 million for the nine months ended September 30 , 2023 and 2022, respectively. (4) Includes the release of reinsurance recoverables and the corresponding allowance for credit losses related to a third-party reinsurer, Scottish Re, where liquidation proceedings commenced during the third quarter of 2023. As of September 30, 2023, reinsurance coverage terminated and all business ceded to Scottish Re was therefore recaptured. (5) Represents changes in the fair values of derivatives we hold as part of VUL hedging, reinsurance-related embedded derivatives and trading securities. (6) Includes gains and losses from fair value changes on mortgage loans on real estate accounted for under the fair value option of $ 2 million and $( 1 ) million for the three months ended September 30, 2023 and 2022, respectively, and $ 1 million and $( 18 ) million for the nine months ended September 30, 2023 and 2022, respectively. (7) Represents 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, and the associated index options to hedge policyholder index allocations applicable to future reset periods for our indexed annuity products. |
Federal Income Taxes
Federal Income Taxes | 9 Months Ended |
Sep. 30, 2023 | |
Federal Income Taxes [Abstract] | |
Federal Income Taxes | 19. Fed eral Income Taxes The effective tax rate is the ratio of tax expense (benefit) over pre-tax income (loss). The effective tax rate was 11 % and 26 % for the three and nine months ended September 30, 2023, respectively, compared to 18 % and 19 %, respectively, for the corresponding periods in 2022. 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. For the three months ended September 30, 2023, the effective tax rate differed from the prevailing corporate federal income tax rate due primarily to the effects of preferential tax items. For the nine months ended September 30, 2023, the effective tax rate differed from the prevailing corporate federal income tax rate due primarily to a tax benefit at 21 % from pre-tax losses in addition to the effects of preferential tax items. For the three and nine months ended September 30, 2022, the effective tax rate differed from the prevailing corporate federal income tax rate due primarily to a tax benefit at 21 % from pre-tax losses in addition to the effects of preferential tax items. |
Nature of Operations, Basis o_2
Nature of Operations, Basis of Presentation and Summary of Significant Accounting Policies (Policy) | 9 Months Ended |
Sep. 30, 2023 | |
Nature of Operations, Basis of Presentation and Summary of Significant Accounting Policies [Abstract] | |
Nature Of Operations | Nature of Operations The Lincoln National Life Insurance Company (“LNL” or the “Company,” which also may be referred to as “we,” “our” or “us”), a wholly-owned subsidiary of Lincoln National Corporation (“LNC” or the “Parent Company”), is domiciled in the state of Indiana. We own 100% of the outstanding common stock of one insurance company subsidiary, Lincoln Life & Annuity Company of New York (“LLANY”). We also own several non-insurance companies, including Lincoln Financial Distributors, our wholesale distributor, and Lincoln Financial Advisors Corporation, part of LNC’s retail distributor, Lincoln Financial Network. LNL is licensed and sells its products throughout the U.S. and several U.S. territories. Through our business segments, we sell a wide range of wealth accumulation, wealth protection, group protection and retirement income products and solutions. These products primarily include fixed and variable annuities, fixed indexed annuities, indexed variable annuities, also referred to as registered index-linked annuities (“RILA”), universal life insurance (“UL”), variable universal life insurance (“VUL”), linked-benefit UL and VUL, indexed universal life insurance (“IUL”), term life insurance, group life, disability and dental and employer-sponsored retirement plans and services. For more information on our segments and the products and solutions we provide, see Note 17. |
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 our Annual Report on Form 10-K for the year ended December 31, 2022, as amended by Amendment No. 1 thereto (“2022 Form 10-K”), as updated by our Current Report on Form 8-K filed with the SEC on May 23, 2023 (the “May 2023 Form 8-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 below. In the opinion of management, these statements include all normal recurring adjustments necessary for a fair presentation of the Company’s results. Interim results for the nine months ended September 30, 2023, are not necessarily indicative of the results that may be expected for the full year ending December 31, 2023. All material inter-company accounts and transactions have been eliminated in consolidation. Certain amounts reported in prior periods’ consolidated financial statements have been reclassified to conform to the presentation adopted in the current period. We present disaggregated disclosures in the Notes below for long-duration insurance balances, applying the level of aggregation by reportable segment as follows: Reportable Segment Level of Aggregation Annuities Variable Annuities Fixed Annuities Payout Annuities Life Insurance Traditional Life UL and Other Group Protection Group Protection Retirement Plan Services Retirement Plan Services The fixed annuities level of aggregation represents deferred fixed annuities. We have excluded amounts reported in Other Operations from our disaggregated disclosures that are attributable to the indemnity reinsurance agreements with Protective Life Insurance Company (“Protective”) and Swiss Re Life & Health America, Inc (“Swiss Re”) as these contracts are fully reinsured, run-off institutional pension business in the form of group annuity and the results of certain disability income business and not reflected in the results of the reportable segments listed above. |
Principles Of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the accounts of LNL and all other entities in which we have a controlling financial interest and any variable interest entities (“VIEs”) in which we are the primary beneficiary. We use the equity method of accounting to recognize all of our investments in limited liability partnerships. All material inter-company accounts and transactions have been eliminated in consolidation. Our involvement with VIEs is primarily to invest in assets that allow us to gain exposure to a broadly diversified portfolio of asset classes. A VIE is an entity that does not have sufficient equity to finance its own activities without additional financial support or where investors lack certain characteristics of a controlling financial interest. We assess our contractual, ownership or other interests in a VIE to determine if our interest participates in the variability the VIE was designed to absorb and pass onto variable interest holders. We perform an ongoing qualitative assessment of our variable interests in VIEs to determine whether we have a controlling financial interest and would therefore be considered the primary beneficiary of the VIE. If we determine we are the primary beneficiary of a VIE, we consolidate the assets and liabilities of the VIE in the consolidated financial statements. |
Accounting Estimates and Assumptions | Accounting Estimates and Assumptions The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions affecting the reported amounts of assets and liabilities and the disclosures of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses for the reporting period. In applying these estimates and assumptions, management makes subjective and complex judgments that frequently require assumptions about matters that are uncertain and inherently subject to change, including matters related to or impacted by the COVID-19 pandemic. Actual results could differ from these estimates and assumptions. Included among the material (or potentially material) reported amounts and disclosures that require use of estimates are: fair value of certain financial assets, derivatives, allowances for credit losses, deferred acquisition costs (“DAC”), value of business acquired (“VOBA”), deferred sales inducements (“DSI”), goodwill and other intangibles, market risk benefits (“MRBs”), future contract benefits, deferred front-end loads (“DFEL”), pension plans, stock-based incentive compensation, income taxes including the recoverability of our deferred tax assets, and the potential effects of resolving litigated matters. |
Business Combinations | Business Combinations We use the acquisition method of accounting for all business combination transactions, and accordingly, recognize the fair values of assets acquired, liabilities assumed and any noncontrolling interests in the consolidated financial statements. The allocation of fair values may be subject to adjustment after the initial allocation for up to a one-year period as more information becomes available relative to the fair values as of the acquisition date. The consolidated financial statements include the results of operations of any acquired company since the acquisition date. |
Fair Value Measurement | Fair Value Measurement Our measurement of fair value is based on assumptions used by market participants in pricing the asset or liability, which may include inherent risk, restrictions on the sale or use of an asset or non-performance risk, which would include our own credit risk. Our estimate of an exchange price is the price in an orderly transaction between market participants to sell the asset or transfer the liability (“exit price”) in the principal market, or the most advantageous market in the absence of a principal market, for that asset or liability, as opposed to the price that would be paid to acquire the asset or receive a liability (“entry price”). Pursuant to the Fair Value Measurements and Disclosures Topic of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification TM (“ASC”), we categorize our financial instruments carried at fair value into a three-level fair value hierarchy, based on the priority of inputs to the respective valuation technique. The three-level hierarchy for fair value measurement is defined as follows: Level 1 – inputs to the valuation methodology are quoted prices available in active markets for identical investments as of the reporting date, except for large holdings subject to “blockage discounts” that are excluded; Level 2 – inputs to the valuation methodology are other than quoted prices in active markets, which are either directly or indirectly observable as of the reporting date, and fair value can be determined through the use of models or other valuation methodologies; and Level 3 – inputs to the valuation methodology are unobservable inputs in situations where there is little or no market activity for the asset or liability, and we make estimates and assumptions related to the pricing of the asset or liability, including assumptions regarding risk. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the investment. When a determination is made to classify an asset or liability within Level 3 of the fair value hierarchy, the determination is based upon the significance of the unobservable inputs to the overall fair value measurement. Because certain securities trade in less liquid or illiquid markets with limited or no pricing information, the determination of fair value for these securities is inherently more difficult. However, Level 3 fair value investments may include, in addition to the unobservable or Level 3 inputs, observable components, which are components that are actively quoted or can be validated to market-based sources. |
Fixed Maturity Available-For-Sale Securities - Fair Valuation Methodologies and Associated Inputs | Fixed Maturity Available-For-Sale Securities – Fair Valuation Methodologies and Associated Inputs Securities classified as available-for-sale (“AFS”) consist of fixed maturity securities and are stated at fair value with unrealized gains and losses included within accumulated other comprehensive income (loss) (“AOCI”), net of the effect on future contract benefits and policyholder account balances that would result from the realization of the unrealized gains and losses. We measure the fair value of our securities classified as fixed maturity AFS based on assumptions used by market participants in pricing the security. The most appropriate valuation methodology is selected based on the specific characteristics of the fixed maturity security, and we consistently apply the valuation methodology to measure the security’s fair value. Our fair value measurement is based on a market approach that utilizes prices and other relevant information generated by market transactions involving identical or comparable securities. Sources of inputs to the market approach primarily include third-party pricing services, independent broker quotations or pricing matrices. We do not adjust prices received from third parties; however, we do analyze the third-party pricing services’ valuation methodologies and related inputs and perform additional evaluation to determine the appropriate level within the fair value hierarchy. The observable and unobservable inputs to our valuation methodologies are based on a set of standard inputs that we generally use to evaluate all of our fixed maturity AFS securities. Observable inputs include benchmark yields, reported trades, broker-dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data. In addition, market indicators, industry and economic events are monitored, and further market data is acquired if certain triggers are met. For certain security types, additional inputs may be used, or some of the inputs described above may not be applicable. For private placement securities, we use pricing matrices that utilize observable pricing inputs of similar public securities and Treasury yields as inputs to the fair value measurement. Depending on the type of security or the daily market activity, standard inputs may be prioritized differently or may not be available for all fixed maturity AFS securities on any given day. For broker-quoted only securities, non-binding quotes from market makers or broker-dealers are obtained from sources recognized as market participants. For securities trading in less liquid or illiquid markets with limited or no pricing information, we use unobservable inputs to measure fair value. The following summarizes our fair valuation methodologies and associated inputs, which are particular to the specified security type and are in addition to the defined standard inputs to our valuation methodologies for all of our fixed maturity AFS securities discussed above: Corporate bonds and U.S. government bonds – We also use Trade Reporting and Compliance Engine TM reported tables for our corporate bonds and vendor trading platform data for our U.S. government bonds. Mortgage- and asset-backed securities (“ABS”) – We also utilize additional inputs, which include new issues data, monthly payment information and monthly collateral performance, including prepayments, severity, delinquencies, step-down features and over collateralization features for each of our mortgage-backed securities (“MBS”), which include collateralized mortgage obligations and mortgage pass through securities backed by residential mortgages (“RMBS”), commercial mortgage-backed securities (“CMBS”) and collateralized loan obligations (“CLOs”). State and municipal bonds – We also use additional inputs that include information from the Municipal Securities Rule Making Board, as well as material event notices, new issue data, issuer financial statements and Municipal Market Data benchmark yields for our state and municipal bonds. Hybrid and redeemable preferred securities – We also utilize additional inputs of exchange prices (underlying and common stock of the same issuer) for our hybrid and redeemable preferred securities. In order to validate the pricing information and broker-dealer quotes, we employ, where possible, procedures that include comparisons with similar observable positions, comparisons with subsequent sales and observations of general market movements for those security classes. We have policies and procedures in place to review the process that is utilized by our third-party pricing service and the output that is provided to us by the pricing service. On a periodic basis, we test the pricing for a sample of securities to evaluate the inputs and assumptions used by the pricing service, and we perform a comparison of the pricing service output to an alternative pricing source. We also evaluate prices provided by our primary pricing service to ensure that they are not stale or unreasonable by reviewing the prices for unusual changes from period to period based on certain parameters or for lack of change from one period to the next. |
Fixed Maturity AFS Securities - Evaluation for Recovery of Amortized Cost | Fixed Maturity AFS Securities – Evaluation for Recovery of Amortized Cost We regularly review our fixed maturity AFS securities (also referred to as “debt securities”) for declines in fair value that we determine to be impairment-related, including those attributable to credit risk factors that may require a credit loss allowance. For our debt securities, we generally consider the following to determine whether our debt securities with unrealized losses are credit impaired: The estimated range and average period until recovery; The estimated range and average holding period to maturity; Remaining payment terms of the security; Current delinquencies and nonperforming assets of underlying collateral; Expected future default rates; Collateral value by vintage, geographic region, industry concentration or property type; Subordination levels or other credit enhancements as of the balance sheet date as compared to origination; and Contractual and regulatory cash obligations. For a debt security, if we intend to sell a security, or it is more likely than not we will be required to sell a debt security before recovery of its amortized cost basis and the fair value of the debt security is below amortized cost, we conclude that an impairment has occurred and the amortized cost is written down to current fair value, with a corresponding charge to realized gain (loss) on the Consolidated Statements of Comprehensive Income (Loss). If we do not intend to sell a debt security, or it is not more likely than not we will be required to sell a debt security before recovery of its amortized cost basis but the present value of the cash flows expected to be collected is less than the amortized cost of the debt security (referred to as the credit loss), we conclude that an impairment has occurred, and a credit loss allowance is recorded, with a corresponding charge to realized gain (loss) on the Consolidated Statements of Comprehensive Income (Loss). The remainder of the decline to fair value related to factors other than credit loss is recorded in other comprehensive income (“OCI”) to unrealized losses on fixed maturity AFS securities on the Consolidated Statements of Stockholder’s Equity, as this amount is considered a noncredit impairment. When assessing our intent to sell a debt security, or if it is more likely than not we will be required to sell a debt security before recovery of its cost basis, we evaluate facts and circumstances such as, but not limited to, decisions to reposition our security portfolio, sales of securities to meet cash flow needs and sales of securities to capitalize on favorable pricing. Management considers the following as part of the evaluation: The current economic environment and market conditions; Our business strategy and current business plans; The nature and type of security, including expected maturities and exposure to general credit, liquidity, market and interest rate risk; Our analysis of data from financial models and other internal and industry sources to evaluate the current effectiveness of our hedging and overall risk management strategies; The current and expected timing of contractual maturities of our assets and liabilities, expectations of prepayments on investments and expectations for surrenders and withdrawals of annuity contracts and life insurance policies; The capital risk limits approved by management; and Our current financial condition and liquidity demands. In order to determine the amount of the credit loss for a debt security, we calculate the recovery value by performing a discounted cash flow analysis based on the current cash flows and future cash flows we expect to recover. The discount rate is the effective interest rate implicit in the underlying debt security. The effective interest rate is the original yield, or the coupon if the debt security was previously impaired. See the discussion below for additional information on the methodology and significant inputs, by security type, that we use to determine the amount of a credit loss. To determine the recovery period of a debt security, we consider the facts and circumstances surrounding the underlying issuer including, but not limited to, the following: Historical and implied volatility of the security; The extent to which the fair value has been less than amortized cost; Adverse conditions specifically related to the security or to specific conditions in an industry or geographic area; Failure, if any, of the issuer of the security to make scheduled payments; and Recoveries or additional declines in fair value subsequent to the balance sheet date. In periods subsequent to the recognition of a credit loss impairment through a credit loss allowance, we continue to reassess the expected cash flows of the debt security at each subsequent measurement date as necessary. If the measurement of credit loss changes, we recognize a provision for (or reversal of) credit loss expense through realized gain (loss) on the Consolidated Statements of Comprehensive Income (Loss), limited by the amount that amortized cost exceeds fair value. Losses are charged against the allowance for credit losses when management believes the uncollectibility of a debt security is confirmed or when either of the criteria regarding intent or requirement to sell is met. Accrued interest on debt securities is written-off through net investment income on the Consolidated Statements of Comprehensive Income (Loss) when deemed uncollectible. To determine the recovery value of a corporate bond or CLO, we perform additional analysis related to the underlying issuer including, but not limited to, the following: Fundamentals of the issuer to determine what we would recover if they were to file bankruptcy versus the price at which the market is trading; Fundamentals of the industry in which the issuer operates; Earnings multiples for the given industry or sector of an industry that the underlying issuer operates within, divided by the outstanding debt to determine an expected recovery value of the security in the case of a liquidation; Expected cash flows of the issuer (e.g., whether the issuer has cash flows in excess of what is required to fund its operations); Expectations regarding defaults and recovery rates; Changes to the rating of the security by a rating agency; and Additional market information (e.g., if there has been a replacement of the corporate debt security). Each quarter, we review the cash flows for the MBS portfolio, including current credit enhancements and trends in the underlying collateral performance to determine whether or not they are sufficient to provide for the recovery of our amortized cost. To determine recovery value of a MBS, we perform additional analysis related to the underlying issuer including, but not limited to, the following: Discounted cash flow analysis based on the current cash flows and future cash flows we expect to recover; Level of borrower creditworthiness of the home equity loans or residential mortgages that back an RMBS or commercial mortgages that back a CMBS; Susceptibility to fair value fluctuations for changes in the interest rate environment; Susceptibility to reinvestment risks, in cases where market yields are lower than the securities’ book yield earned; Susceptibility to reinvestment risks, in cases where market yields are higher than the book yields earned on a security; Expectations of sale of such a security where market yields are higher than the book yields earned on a security; and Susceptibility to variability of prepayments. When evaluating MBS and mortgage-related ABS, we consider a number of pool-specific factors as well as market level factors when determining whether or not the impairment on the security requires a credit loss allowance. The most important factor is the performance of the underlying collateral in the security and the trends of that performance in the prior periods. We use this information about the collateral to forecast the timing and rate of mortgage loan defaults, including making projections for loans that are already delinquent and for those loans that are currently performing but may become delinquent in the future. Other factors used in this analysis include the credit characteristics of borrowers, geographic distribution of underlying loans and timing of liquidations by state. Once default rates and timing assumptions are determined, we then make assumptions regarding the severity of a default if it were to occur. Factors that impact the severity assumption include expectations for future home price appreciation or depreciation, loan size, first lien versus second lien, existence of loan level private mortgage insurance, type of occupancy and geographic distribution of loans. Once default and severity assumptions are determined for the security in question, cash flows for the underlying collateral are projected including expected defaults and prepayments. These cash flows on the collateral are then translated to cash flows on our tranche based on the cash flow waterfall of the entire capital security structure. If this analysis indicates the entire principal on a particular security will not be returned, the security is reviewed for a credit loss by comparing the expected cash flows to amortized cost. To the extent that the security has already been impaired through a credit loss allowance or was purchased at a discount, such that the amortized cost of the security is less than or equal to the present value of cash flows expected to be collected, no credit loss allowance is required. Otherwise, if the amortized cost of the security is greater than the present value of the cash flows expected to be collected, and the security was not purchased at a discount greater than the expected principal loss, then an impairment through a credit loss allowance is recognized. We further monitor the cash flows of all of our debt securities backed by mortgages on an ongoing basis. We also perform detailed analysis on all of our subprime, Alt-A, non-agency residential MBS and on a significant percentage of our debt securities backed by pools of commercial mortgages. The detailed analysis includes revising projected cash flows by updating the cash flows for actual cash received and applying assumptions with respect to expected defaults, foreclosures and recoveries in the future. These revised projected cash flows are then compared to the amount of credit enhancement (subordination) in the structure to determine whether the amortized cost of the security is recoverable. If it is not recoverable, we record an impairment through a credit loss allowance for the security. |
Trading Securities | Trading Securities Trading securities consist of fixed maturity securities in designated portfolios, some of which support modified coinsurance and coinsurance with funds withheld reinsurance agreements. Investment results for the portfolios that support modified coinsurance and coinsurance with funds withheld reinsurance agreements, including gains and losses from sales, are passed directly to the reinsurers pursuant to contractual terms of the reinsurance agreements. Trading securities are carried at fair value, and changes in fair value and changes in the fair value of embedded derivative liabilities associated with the underlying reinsurance agreements are recorded in realized gain (loss) on the Consolidated Statements of Comprehensive Income (Loss) as they occur. |
Equity Securities | Equity Securities Equity securities are carried at fair value, and changes in fair value are recorded in realized gain (loss) on the Consolidated Statements of Comprehensive Income (Loss) as they occur. Equity securities consist primarily of common stock of publicly-traded companies, privately placed securities and mutual fund shares. We measure the fair value of our equity securities based on assumptions used by market participants in pricing the security. The most appropriate valuation methodology is selected based on the specific characteristics of the equity security. Fair values of publicly-traded equity securities are determined using quoted prices in active markets for identical or comparable securities. When quoted prices are not available, we use valuation methodologies most appropriate for the specific asset. Fair values for private placement securities are determined using discounted cash flow, earnings multiple and other valuation models. The fair values of mutual fund shares that transact regularly are based on transaction prices of identical fund shares. |
Mortgage Loans on Real Estate | Mortgage Loans on Real Estate Mortgage loans on real estate consist of commercial and residential mortgage loans and are generally carried at unpaid principal balances adjusted for amortization of premiums and accretion of discounts and are net of allowance for credit losses. We carry certain mortgage loans associated with modified coinsurance agreements at fair value where the fair value option has been elected. Interest income is accrued on the principal balance of the loan based on the loan’s contractual interest rate. Premiums and discounts are amortized using the effective yield method over the life of the loan. Interest income and amortization of premiums and discounts are reported in net investment income on the Consolidated Statements of Comprehensive Income (Loss) along with mortgage loan fees, which are recorded as they are incurred. Our policy for commercial mortgage loans is to report loans that are 60 or more days past due, which equates to two or more payments missed, as delinquent. Our policy for residential mortgage loans is to report loans that are 90 or more days past due, which equates to three or more payments missed, as delinquent. We do not accrue interest on loans 90 days past due, and any interest received on these loans is either applied to the principal or recorded in net investment income on the Consolidated Statements of Comprehensive Income (Loss) when received, depending on the assessment of the collectability of the loan. We resume accruing interest once a loan complies with all of its original terms or restructured terms. Mortgage loans deemed uncollectible are charged against the allowance for credit losses, and subsequent recoveries, if any, are likewise credited to the allowance for credit losses. Accrued interest on mortgage loans is written-off when deemed uncollectible. In connection with our recognition of an allowance for credit losses for mortgage loans on real estate, we perform a quantitative analysis using a probability of default/loss given default/exposure at default approach to estimate expected credit losses in our mortgage loan portfolio as well as unfunded commitments related to commercial mortgage loans, exclusive of certain mortgage loans held at fair value. Our model estimates expected credit losses over the contractual terms of the loans, which are the periods over which we are exposed to credit risk, adjusted for expected prepayments. Credit loss estimates are segmented by commercial mortgage loans, residential mortgage loans, and unfunded commitments related to commercial mortgage loans. The allowance for credit losses for pooled loans of similar risk (i.e., commercial and residential mortgage loans) is estimated using relevant historical credit loss information adjusted for current conditions and reasonable and supportable forecasts of future conditions. Historical credit loss experience provides the basis for the estimation of expected credit losses with adjustments for differences in current loan-specific risk characteristics, such as differences in underwriting standards, portfolio mix, delinquency level, or term lengths as well as adjustments for changes in environmental conditions, such as unemployment rates, property values, or other factors that management deems relevant. We apply probability weights to the positive, base and adverse scenarios we use. For periods beyond our reasonable and supportable forecast, we use implicit mean reversion over the remaining life of the recoverable, meaning our model will inherently revert to the baseline scenario as the baseline is representative of the historical average over a longer period of time. Loans are considered impaired when it is probable that, based upon current information and events, we will be unable to collect all amounts due under the contractual terms of the loan agreement. When we determine that a loan is impaired, a specific credit loss allowance is established for the excess carrying value of the loan over its estimated value. The loan’s estimated value is based on: the present value of expected future cash flows discounted at the loan’s effective interest rate; the loan’s observable market price; or the fair value of the loan’s collateral. Allowance for credit losses are maintained at a level we believe is adequate to absorb current expected lifetime credit losses. Our periodic evaluation of the adequacy of the allowance for credit losses is based on historical loss experience, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay (including the timing of future payments), the estimated value of the underlying collateral, composition of the loan portfolio, current economic conditions, reasonable and supportable forecasts about the future and other relevant factors. Mortgage loans on real estate are presented net of the allowance for credit losses on the Consolidated Balance Sheets. Changes in the allowance are reported in realized gain (loss) on the Consolidated Statements of Comprehensive Income (Loss). Mortgage loans on real estate deemed uncollectible are charged against the allowance for credit losses, and subsequent recoveries, if any, are credited to the allowance for credit losses, limited to the aggregate of amounts previously charged-off and expected to be charged-off. Our commercial loan portfolio is primarily comprised of long-term loans secured by existing commercial real estate. We believe all of the commercial loans in our portfolio share three primary risks: borrower credit worthiness; sustainability of the cash flow of the property; and market risk; therefore, our methods of monitoring and assessing credit risk are consistent for our entire portfolio. For our commercial mortgage loan portfolio, trends in market vacancy and rental rates are incorporated into the analysis that we perform for monitored loans and may contribute to the establishment of (or an increase or decrease in) an allowance for credit losses. In addition, we review each loan individually in our commercial mortgage loan portfolio on an annual basis to identify emerging risks. We focus on properties that experienced a reduction in debt-service coverage or that have significant exposure to tenants with deteriorating credit profiles. Where warranted, we establish or increase a credit loss allowance for a specific loan based upon this analysis. We measure and assess the credit quality of our commercial mortgage loans by using loan-to-value and debt-service coverage ratios. The loan-to-value ratio compares the principal amount of the loan to the fair value at origination of the underlying property collateralizing the loan and is commonly expressed as a percentage. Loan-to-value ratios greater than 100 % indicate that the principal amount is greater than the collateral value. Therefore, all else being equal, a lower loan-to-value ratio generally indicates a higher quality loan. The debt-service coverage ratio compares a property’s net operating income to its debt-service payments. Debt-service coverage ratios of less than 1.0 indicate that property operations do not generate enough income to cover its current debt payments. Therefore, all else being equal, a higher debt-service coverage ratio generally indicates a higher quality loan. These credit quality metrics are monitored and reviewed at least annually. We have off-balance sheet commitments related to commercial mortgage loans. As such, an allowance for credit losses is developed based on the commercial mortgage loan process outlined above, along with an internally developed conversion factor. Our residential loan portfolio is primarily comprised of first lien mortgages secured by existing residential real estate. In contrast to the commercial mortgage loan portfolio, residential mortgage loans are primarily smaller-balance homogenous loans that share similar risk characteristics. Therefore, these pools of loans are collectively evaluated for inherent credit losses. Such evaluations consider numerous factors, including, but not limited to borrower credit scores, collateral values, loss forecasts, geographic location, delinquency rates and economic trends. These evaluations and assessments are revised as conditions change and new information becomes available, including updated forecasts, which can cause the allowance for credit losses to increase or decrease over time as such evaluations are revised. Generally, residential mortgage loan pools exclude loans that are nonperforming, as those loans are evaluated individually using the evaluation framework for specific allowance for credit losses described above. For residential mortgage loans, our primary credit quality indicator is whether the loan is performing or nonperforming. We generally define nonperforming residential mortgage loans as those that are 90 or more days past due and/or in nonaccrual status. There is generally a higher risk of experiencing credit losses when a residential mortgage loan is nonperforming. We monitor and update aging schedules and nonaccrual status on a monthly basis. |
Policy Loans | Policy Loans Policy loans represent loans we issue to policyholders that use the cash surrender value of their life insurance policy as collateral. Policy loans are carried at unpaid principal balances. |
Derivative Instruments | Derivative Instruments We hedge certain portions of our exposure to interest rate risk, foreign currency exchange risk, equity market risk, basis risk, commodity risk and credit risk by entering into derivative transactions. Our derivative instruments are recognized as either assets or liabilities on the Consolidated Balance Sheets at estimated fair value. We have master netting agreements with each of our derivative counterparties that allow for the netting of our derivative asset and liability positions by counterparty. We categorize derivatives into a three-level hierarchy, based on the priority of the inputs to the respective valuation technique as discussed above in “Fair Value Measurement.” The accounting for changes in the estimated fair value of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship, and further, on the type of hedging relationship. For those derivative instruments that are designated and qualify as hedging instruments, we designate the hedging instrument based upon the exposure being hedged: as a cash flow hedge or a fair value hedge. For derivative instruments that are designated and qualify as a cash flow hedge, the gain or loss on the derivative instrument is reported as a component of AOCI and reclassified into net income in the same period or periods during which the hedged transaction affects net income. For derivative instruments that are designated and qualify as a fair value hedge, the gain or loss on the derivative instrument, as well as the offsetting gain or loss on the hedged item attributable to the hedged risk are recognized in net income during the period of change in estimated fair values. For derivative instruments not designated as hedging instruments, but that are economic hedges, the gain or loss is recognized in net income. We purchase and issue financial instruments and products that contain embedded derivative instruments that are recorded with the associated host contract. When it is determined that the embedded derivative possesses economic characteristics that are not clearly and closely related to the economic characteristics of the host contract, and a separate instrument with the same terms would qualify as a derivative instrument, the embedded derivative is bifurcated from the host for measurement purposes and reported within other assets or other liabilities on the Consolidated Balance Sheets. The embedded derivative is carried at fair value with changes in fair value recognized in net income during the period of change. We employ several different methods for determining the fair value of our derivative instruments. The fair value of our derivative contracts are measured based on current settlement values, which are based on quoted market prices, industry standard models that are commercially available and broker quotes. These techniques project cash flows of the derivatives using current and implied future market conditions. We calculate the present value of the cash flows to measure the current fair market value of the derivative. |
Other Investments | Other Investments Other investments consist primarily of alternative investments, cash collateral receivables related to our derivative instruments, Federal Home Loan Bank (“FHLB”) common stock and short-term investments. Alternative investments consist primarily of investments in limited partnerships (“LPs”). We account for our investments in LPs using the equity method to determine the carrying value. Recognition of alternative investment income is delayed due to the availability of the related financial statements, which are generally obtained from the partnerships’ general partners. As a result, our private equity investments are generally on a three-month delay and our hedge funds are on a one-month delay. In addition, the impact of audit adjustments related to completion of calendar-year financial statement audits of the investees are typically received during the second quarter of each calendar year. Accordingly, our investment income from alternative investments for any calendar-year period may not include the complete impact of the change in the underlying net assets for the partnership for that calendar-year period. In uncleared derivative transactions, we and the counterparty enter into a credit support annex requiring either party to post collateral, which may be in the form of cash, equal to the net derivative exposure. Cash collateral we have posted to a counterparty is recorded within other investments. Cash collateral a counterparty has posted is recorded within payables for collateral on investments. We also have investments in FHLB common stock, carried at cost, that enable access to the FHLB lending program. For more information on our collateralized financing arrangements, see “Payables for Collateral on Investments” below. Short-term investments consist of securities with original maturities of one year or less, but greater than three months. Securities included in short-term investments are carried at fair value, with valuation methods and inputs consistent with those applied to fixed maturity AFS securities. |
Cash and Invested Cash | Cash and Invested Cash Cash and invested cash is carried at cost and includes all highly liquid debt instruments purchased with an original maturity of three months or less. |
DAC, VOBA, DSI and DFEL | DAC, VOBA, DSI and DFEL Acquisition costs directly related to successful contract acquisitions or renewals of annuities, UL, VUL, traditional life insurance, group life and disability insurance, and other investment contracts have been deferred (i.e., DAC). Such acquisition costs are capitalized in the period they are incurred and primarily include commissions, certain bonuses, a portion of total compensation and benefits of certain employees involved in the acquisition process and medical and inspection fees. VOBA is an intangible asset that reflects the estimated fair value of in-force contracts in a life insurance company acquisition and represents the portion of the purchase price that is allocated to the value of the right to receive future cash flows from the business in force at the acquisition date. Bonus credits and excess interest for dollar cost averaging contracts are considered DSI and reported in deferred acquisition costs, value of business acquired and deferred sales inducements on the Consolidated Balance Sheets. Contract sales charges that are collected in the early years of an insurance contract are deferred and reported as deferred front-end loads (i.e., DFEL) on the Consolidated Balance Sheets. DAC, VOBA, DSI and DFEL amortization is reported within the following financial statement line items on the Consolidated Statements of Comprehensive Income (Loss): DAC and VOBA – commissions and other expenses DSI – interest credited DFEL – fee income DAC, VOBA, DSI and DFEL are amortized on a constant level basis relative to the insurance in force over the expected term of the related contracts using the groupings and actuarial assumptions that are consistent with those used for calculating the related policyholder liability balances. Actuarial assumptions include, but are not limited to, mortality, morbidity and certain policyholder behaviors such as persistency, which are adjusted for emerging experience and expected trends of the related long-duration insurance contracts and certain investment contracts by each reportable segment. During the third quarter of each year, we conduct our comprehensive review and update these actuarial assumptions. We may update our actuarial assumptions in other quarters as we become aware of information that warrants updating outside of our comprehensive review. These resulting changes are applied prospectively. The following provides a summary of our DAC, VOBA, DSI and DFEL amortization basis and expected amortization period by reportable segment: Reportable Segment Amortization Basis Expected Amortization Period Annuities Total deposits paid to date on policies in force Between 30 to 40 years Life Insurance Policy count of policies in force On average 60 years Group Protection Group certificate contracts in force 4 years Retirement Plan Services Lives in force Between 40 to 50 years We account for modifications of insurance contracts that result in a substantially unchanged contract as a continuation of the replaced contract. We account for modifications of insurance contracts that result in a substantially changed contract as an extinguishment of the replaced contract. For reinsurance transactions where we receive proceeds that represent recovery of our previously incurred acquisition costs, we reduce the applicable unamortized acquisition cost such that net acquisition costs are capitalized and charged to commissions and other expenses. |
Reinsurance | Reinsurance We and LLANY enter into reinsurance agreements in the normal course of business to limit our exposure to the risk of loss and to enhance our capital management. In order for a reinsurance agreement to qualify for reinsurance accounting, the agreement must satisfy certain risk transfer conditions that include, among other items, a reasonable possibility of a significant loss for the assuming entity. When we apply reinsurance accounting, premiums, benefits and DAC amortization are reported net of reinsurance ceded, as applicable, on the Consolidated Statements of Comprehensive Income (Loss). Amounts currently recoverable, such as ceded reserves, other than ceded MRBs, are reported in reinsurance recoverables, and amounts currently payable to the reinsurers, such as premiums, are included in other liabilities on the Consolidated Balance Sheets. We use deposit accounting to recognize reinsurance agreements that do not transfer significant insurance risk. This accounting treatment results in amounts paid or received by us to be considered on deposit with the reinsurer and such amounts are reported in other assets and other liabilities, respectively, on the Consolidated Balance Sheets. As amounts are paid or received, consistent with the underlying contracts, deposit assets or liabilities are adjusted. When there is a contractual right of offset, assets and liabilities and revenues and expenses from certain reinsurance contracts that grant statutory surplus relief to our insurance companies are netted on the Consolidated Balance Sheets and Consolidated Statements of Comprehensive Income (Loss), respectively. Reinsurance recoverables are measured and recognized consistent with the liabilities related to the underlying contracts. The interest assumption used for discounting reinsurance recoverables associated with non-participating traditional life insurance contracts and limited payment life-contingent annuity contracts is the upper-medium grade fixed income instrument (“single-A”) interest rate locked-in at the reinsurance contract issuance date. We remeasure reinsurance recoverables associated with non-participating traditional life insurance contracts and limited payment life-contingent annuity contracts with the current single-A interest rate as of the end of each reporting period. Ceded MRBs are accounted for separately from reinsurance recoverables. See “MRBs” below for additional information. The cost of reinsurance related to long-duration contracts is accounted for over the life of the underlying reinsured policies using assumptions consistent with those used to account for the underlying policies and is reported within other assets on the Consolidated Balance Sheets. We estimated an allowance for credit losses for all reinsurance recoverables and related reinsurance deposit assets held by our subsidiaries, other than ceded MRB assets. As such, we performed a quantitative analysis using a probability of loss model approach to estimate expected credit losses for reinsurance recoverables, inclusive of similar assets recognized using the deposit method of accounting. The credit loss allowance is a general allowance for pools of receivables with similar risk characteristics segmented by credit risk ratings and receivables assessed on an individual basis that do not share similar risk characteristics where we anticipate a credit loss over the life of reinsurance-related assets, other than ceded MRB assets. Our model uses relevant internal or external historical loss information adjusted for current conditions and reasonable and supportable forecasts of future events and conditions in developing our credit loss estimate. We utilized historical credit rating data to form an estimation of probability of default of counterparties by means of a transition matrix that provides the rates of credit migration for credit ratings transitioning to impairment. We updated reinsurer credit ratings during the period to incorporate the most up-to-date information on the current state of the financial stability of our reinsurers. To simulate changes in economic conditions, we used positive, base and adverse scenarios that include varying levels of loss given default assumptions to reflect the impact of changes in severity of losses. We applied probability weights to the positive, base and adverse scenarios. For periods beyond our reasonable and supportable forecasts, we used implicit mean reversion over the remaining life of the recoverable. Additionally, we considered factors that impact our exposure at default that are driven by actuarial expectations around term assumptions rather than being directly driven by market or economic environment. Our model estimates the expected credit losses over the life of the reinsurance asset. Credit loss estimates are segmented based on counterparty credit risk. Our modeling process utilizes counterparty credit ratings, collateral types and amounts, and term and run-off assumptions. For reinsurance recoverables that do not share similar risk characteristics, we assessed on an individual basis to determine a specific credit loss allowance. We estimated expected credit losses over the contractual term of the recoverable, which is the period during which we are exposed to the credit risk. Reinsurance recoverables may not have explicit contractual lives, but are tied to the underlying insurance products; as a result, we estimated the contractual life by utilizing actuarial estimates of the timing of payouts related to those underlying products. Reinsurance agreements often require the reinsurer to collateralize the recoverable with funds in a trust account or with a letter of credit for the benefit of the ceding insurance entity that can reduce the expected credit losses on a given agreement. As such, we review reinsurance collateral by individual agreement to sensitize risk of loss based on level of collateralization. This review is driven by the assumption that non-collateralized reinsurance recoverables would have materially higher losses in times of default. Therefore, reinsurance recoverables are pooled as either fully-collateralized or non-collateralized. Reinsurance recoverables are presented net of the allowance for credit losses on the Consolidated Balance Sheets. Changes in the allowance for credit losses are reported in realized gain (loss) on the Consolidated Statements of Comprehensive Income (Loss). Reinsurance recoverables deemed uncollectible are charged against the allowance for credit losses, and subsequent recoveries, if any, are credited to the allowance for credit losses, limited to the aggregate of amounts previously charged-off and expected to be charged-off. In the first quarter of 2023, the reinsurance arrangement with Lincoln National Reinsurance Company (Barbados) Limited (“LNBAR”) for certain variable annuity guaranteed benefit riders was modified from a coinsurance funds withheld arrangement to a modified coinsurance arrangement. |
Goodwill | Goodwill We recognize the excess of the purchase price, plus the fair value of any noncontrolling interest in the acquiree, over the fair value of identifiable net assets acquired as goodwill. Goodwill is not amortized, but is reviewed for impairment annually as of October 1 and more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. We perform a quantitative goodwill impairment test where the fair value of the reporting unit is determined and compared to the carrying value of the reporting unit. If the carrying value of the reporting unit is greater than the reporting unit’s fair value, goodwill is impaired and written down to the reporting unit’s fair value; and a charge is reported in impairment of intangibles on the Consolidated Statements of Comprehensive Income (Loss). The results of one goodwill impairment test on one reporting unit cannot subsidize the results of another reporting unit. |
Other Assets and Other Liabilities | Other Assets and Other Liabilities Other assets consist primarily of certain reinsurance assets, net of allowance for credit losses, current and deferred taxes, premiums and fees receivable, property and equipment, balances associated with corporate-owned and bank-owned life insurance, receivables resulting from sales of securities that had not yet settled as of the balance sheet date, specifically identifiable intangible assets, operating lease right-of-use (“ROU”) assets, finance lease assets, ceded MRB liabilities and other receivables and prepaid expenses. Other liabilities consist primarily of certain reinsurance payables, pension and other employee benefit liabilities, certain financing arrangements, derivative instrument liabilities, ceded MRB assets, other policyholder liabilities, deferred gain on business sold through reinsurance, long-term operating lease liabilities, payables resulting from purchases of securities that had not yet settled as of the balance sheet date, finance lease liabilities and other accrued expenses. The carrying values of specifically identifiable intangible assets are reviewed at least annually for indicators of impairment in value that are related to credit loss or non-credit, including unexpected or adverse changes in the following: the economic or competitive environments in which the company operates; profitability analyses; cash flow analyses; and the fair value of the relevant business operation. If there was an indication of impairment, then the discounted cash flow method would be used to measure the impairment, and the carrying value would be adjusted as necessary and reported in impairment of intangibles on the Consolidated Statements of Comprehensive Income (Loss). Sales force intangibles are attributable to the value of the new business distribution system acquired through business combinations. These assets are amortized on a straight-line basis over their useful life of 25 years. Specifically identifiable intangible assets also includes the value of customer relationships acquired (“VOCRA”) and value of distribution agreements (“VODA”). The carrying values of VOCRA and VODA are amortized using a straight-line basis over their weighted average life of 20 years and 13 years, respectively. Property and equipment owned for company use is carried at cost less allowances for depreciation. Provisions for depreciation of investment real estate and property and equipment owned for company use are computed principally on the straight-line method over the estimated useful lives of the assets, which include buildings, computer hardware and software and other property and equipment. Certain assets on the Consolidated Balance Sheets are related to finance leases and certain financing arrangements and are depreciated in a manner consistent with our current depreciation policy for owned assets. We periodically review the carrying value of our long-lived assets, including property and equipment, for impairment whenever events or circumstances indicate that the carrying amount of such assets may not be fully recoverable. For long-lived assets to be held and used, impairments are recognized when the carrying amount of a long-lived asset is not recoverable and exceeds its fair value. The carrying amount of a long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. An impairment loss is measured as the amount by which the carrying amount of a long-lived asset exceeds its fair value. Long-lived assets to be disposed of by abandonment or in an exchange for a similar productive long-lived asset are classified as held-for-use until they are disposed. Long-lived assets to be sold are classified as held-for-sale and are no longer depreciated. Certain criteria have to be met in order for the long-lived asset to be classified as held-for-sale, including that a sale is probable and expected to occur within one year. Long-lived assets classified as held-for-sale are recorded at the lower of their carrying amount or fair value less cost to sell. We lease office space and certain equipment under various long-term lease agreements. We determine if an arrangement is a lease at inception. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at the commencement date. Our leases do not provide an implicit rate; therefore, we use our incremental borrowing rate at the commencement date in determining the present value of future payments. The ROU asset is calculated using the lease liability carrying amount, plus or minus prepaid/accrued lease payments, minus the unamortized balance of lease incentives received, plus unamortized initial direct costs. Lease terms used to calculate our lease obligation include options when we are reasonably certain that we will exercise such options. Our lease agreements may contain both lease and non-lease components, which are accounted for separately. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. Other assets includes deferred losses on business sold through reinsurance attributable to our 2012 and 2014 reinsurance transactions where we ceded closed blocks of UL contracts with secondary guarantees to LNBAR, a wholly-owned subsidiary of LNC. We are recognizing the losses related to these transactions over a period of 30 years. Other liabilities includes deferred gains on business sold through reinsurance. During 2009, we completed a reinsurance transaction whereby we assumed a closed block of term contracts from First Penn-Pacific Life Insurance Company, a wholly-owned subsidiary of LNC. We are recognizing the gain related to this transaction over a period of 15 years. During 2012, we completed a reinsurance transaction whereby we ceded a closed block of UL contracts with secondary guarantees to LNBAR. We are recognizing the gain related to the transaction over a period of 30 years. During 2013, we completed a reinsurance transaction whereby we ceded a closed block of UL contracts with secondary guarantees to LNBAR. During 2019, we amended the 2013 reinsurance transaction by recapturing the underlying base policy from LNBAR while continuing to cede the associated riders. We are recognizing the gain related to this transaction over the expected life of the underlying business, or 20 years. Effective October 1, 2018, we entered into a reinsurance agreement with Athene Holding Ltd. (“Athene”). We are recognizing the gain related to this transaction over the period in which the majority of account balances is expected to run off, or 20 years. Effective October 1, 2021, we entered into a reinsurance agreement with Security Life of Denver Insurance Company (a subsidiary of Resolution Life that we refer to herein as “Resolution Life”). We are recognizing the gain related to this transaction over the projected life of the policies, or 30 years. |
Separate Account Assets and Liabilities | Separate Account Assets and Liabilities Separate accounts represent segregated funds that are maintained to meet specific investment objectives of policyholders who direct the investments and bear the investment risk, except to the extent of minimum guarantees made by the Company with respect to certain accounts. The assets of each account are legally segregated and are not subject to claims that arise out of any other business of the Company. We report separate account assets as a summary total on the Consolidated Balance Sheets based on the fair value of the underlying investments. The underlying investments consist primarily of mutual funds, fixed maturity AFS securities, short-term investments and cash. Investment income and net realized and unrealized gains (losses) of the separate accounts generally accrue directly to the policyholders; therefore, they are not reflected on the Consolidated Statements of Comprehensive Income (Loss), and the Consolidated Statements of Cash Flows do not reflect investment activity of the separate accounts. Asset-based fees and contract administration charges (collectively referred to as “policyholder assessments”) are assessed against the accounts and included within fee income on the Consolidated Statements of Comprehensive Income (Loss). An amount equivalent to the separate account assets is recorded as separate account liabilities, representing the account balance obligated to be returned to the policyholder. |
Future Contract Benefits | Future Contract Benefits Future contract benefits represent liability reserves, including liability for future policy benefits (“LFPB”), liability for future claims reserves and additional liability for other insurance benefits that we have established and carry based on estimates of how much we will need to pay for future benefits and claims. The LFPB associated with non-participating traditional life insurance contracts and limited payment life-contingent annuity contracts is measured using a net premium ratio approach. This approach accrues expected benefits and claims in proportion to the premium revenue recognized. For life-contingent payout annuity contracts with limited premium payments, as premium collection is not the completion of the earnings process, gross premiums in excess of net premiums are deferred. This excess of gross premiums received over the related net premiums is referred to as the deferred profit liability (“DPL”). The DPL is included in the LFPB, and profits are recognized over the life of the contracts. In measuring our LFPB, we establish cohorts, which are groupings of long-duration contracts. Factors that we consider in determining cohorts include, but are not limited to, our contract classification and issue year requirements, product risk characteristics, assumptions and modeling level used in the valuation systems. The net premium ratio is capped at 100 % at the individual cohort level. Expected benefits and claims in excess of premium revenue recognized are expensed immediately. We use actuarial assumptions to best estimate future premium and benefit cash flows (“cash flow assumptions”) as well as the actual historical cash flows received and paid to derive a net premium ratio in measuring the LFPB. These actuarial assumptions include mortality rates, morbidity, policyholder behavior (e.g., persistency) and withdrawals based principally on generally accepted actuarial methods and assumptions. During the third quarter of each year, we conduct our comprehensive review of the cash flow assumptions and projection models used in estimating these liabilities and update these assumptions (excluding the claims settlement expense assumption that is locked in at inception) in the calculation of the net premium ratio. We may also update these assumptions in other quarters as we become aware of information that is indicative of such update. On a quarterly basis, we retrospectively update the net premium ratio for actual experience. The remeasurement of LFPB for both assumption updates and actual experience are reported within policyholder liability remeasurement gain (loss) on the Consolidated Statements of Comprehensive Income (Loss). For all contract cohorts issued after January 1, 2021, interest is accrued on LFPB at the single-A interest rate on the contract cohort inception date. For contract cohorts issued prior to January 1, 2021, interest remains accruing at the original discount rate in effect on the contract cohort inception date due to the modified retrospective transition method. We also remeasure the LFPB using the single-A interest rate as of the end of each reporting period, which is reported within policyholder liability discount rate remeasurement gain (loss) on the Consolidated Statements of Comprehensive Income (Loss). We evaluate the liability for future claims on our long-term life and disability group products. Given the term and renewal features of our product and funding nature of the associated premiums, we have determined that the liability value is generally zero for policies that are not on claim. Therefore, the liability for future claims represents future payments on claims for which a disability event has occurred as of the valuation date. In measuring the liability for future claims, we establish cohorts similar to the process described above and use actuarial assumptions primarily based on claim termination rates, offsets for other insurance including social security and long-term disability incidence and severity assumptions. Cash flow assumptions are subject to the comprehensive review process discussed above. On a quarterly basis, the liability for future claims is updated for actual claims experience. The remeasurement of the liability for future claims for both assumption updates and actual experience are reported within policyholder liability remeasurement gain (loss) on the Consolidated Statements of Comprehensive Income (Loss). We remeasure the liability for future claims using a single-A interest rate as of the end of each reporting period, which is reported within policyholder liability discount rate remeasurement gain (loss) on the Consolidated Statements of Comprehensive Income (Loss). We use the single-A interest rate curve to discount cash flows used to calculate the LFPB and the liability for future claims. This curve is developed using the upper-medium grade (low credit risk) fixed-income instrument yields that are intended to reflect the duration characteristics of the applicable insurance liabilities. We issue UL contracts with separate accounts that may include various types of guaranteed benefits that are not accounted for as MRBs or embedded derivatives. These guaranteed benefits require an additional liability that is calculated by estimating the present value of total expected benefit payments over the life of the contract from inception divided by the present value of total expected assessments over the life of the contract (“benefit ratio”) multiplied by the cumulative assessments recorded from the contract inception through the balance sheet date less the cumulative payments plus interest on the liability. Cash flow assumptions incorporated in a benefit ratio in measuring these additional liabilities for other insurance benefits include mortality rates, morbidity, policyholder behavior (e.g., persistency) and withdrawals based principally on generally accepted actuarial methods and assumptions. During the third quarter of each year, we conduct our comprehensive review of the cash flow assumptions and projection models used in estimating these liabilities and update these assumptions in the calculation of the benefit ratio. We may also update these assumptions in other quarters as we become aware of information that is indicative of such update. On a quarterly basis, we retrospectively update the benefit ratio for actual experience. The remeasurement of additional liability for both assumptions and actual experience are reported within policyholder liability remeasurement gain (loss) on the Consolidated Statements of Comprehensive Income (Loss). As future cash flow assumption and experience updates result in changes in expected benefit payments or assessments, the benefit ratio is recalculated using the updated expected benefit payments and assessments over the life of the contract since inception. The revised benefit ratio is then applied to the liability calculation described above. Premium deficiency testing is performed for interest-sensitive life products periodically using best estimate assumptions as of the testing date to test the adequacy and appropriateness of the established net reserve (i.e., GAAP reserves net of any DSI or VOBA assets). The premium deficiency test is also performed using a discount rate based on the average crediting rate. A premium deficiency exists when the net reserve plus the present value of expected future gross premiums are determined to be insufficient to cover expected future benefits and non-level expenses. The business written or assumed by us includes participating life insurance contracts, under which the policyholder is entitled to share in the earnings of such contracts via receipt of dividends. The dividend scale for participating policies is reviewed annually and may be adjusted to reflect recent experience and future expectations. |
MRBs | MRBs MRBs are contracts or contract features that provide protection to the policyholder from other-than-nominal capital market risk and expose us to other-than-nominal capital market risk upon the occurrence of a specific event or circumstance, such as death, annuitization or periodic withdrawal. MRBs do not include the death benefit component of a life insurance contract (i.e., the difference between the account balance and the death benefit amount). All long-duration insurance contracts and certain investment contracts are subject to MRB evaluation. An MRB can be in either an asset or a liability position. Our MRB assets and MRB liabilities are reported at fair value separately on the Consolidated Balance Sheets. We issue variable and fixed annuity contracts that may include various types of guaranteed living benefit (“GLB”) and guaranteed death benefit (“GDB”) riders that we have classified as MRBs. For contracts that contain multiple features that qualify as MRBs, the MRBs are valued on a combined basis using an integrated model. We have entered into reinsurance agreements to cede certain GLB and GDB riders where the reinsurance agreements themselves are accounted for as MRBs or contain MRBs. We therefore record ceded MRB assets and ceded MRB liabilities associated with these reinsurance agreements. Ceded MRB liabilities are included in other assets and ceded MRB assets are included in other liabilities on the Consolidated Balance Sheets. MRBs are valued based on a stochastic projection of risk-neutral scenarios that incorporate a spread reflecting our non-performance risk. Ceded MRBs are valued based on a stochastic projection of risk-neutral scenarios that incorporate a spread reflecting our counterparties’ non-performance risk. The scenario assumptions, at each valuation date, are those we view to be appropriate for a hypothetical market participant and include assumptions for capital markets, policyholder behavior (e.g., policy lapse, rider utilization, etc.) mortality, risk margin and administrative expenses. These assumptions are based on a combination of historical data and actuarial judgments. During the third quarter of each year, we conduct our comprehensive review of the actuarial assumptions and projection models used in estimating these MRBs and update these assumptions on a prospective basis as needed. We may also update these assumptions in other quarters as we become aware of information that is indicative of the need for such an update. The assumptions for our own non-performance risk and our counterparties’ non-performance risk for MRBs and ceded MRBs, respectively, are determined at each valuation date and reflect our and our counterparties’ risks of not fulfilling the obligations of the underlying liability. The spread for the non-performance risk is added to the discount rates used in determining the fair value from the net cash flows. For information on fair value inputs, see Note 14. |
Policyholder Account Balances | Policyholder Account Balance s Policyholder account balances include the contract value that has accrued to the benefit of the policyholder as of the balance sheet date. The liability for policyholder account balances includes UL and VUL and investment-type annuity products where account balances are equal to deposits plus interest credited less withdrawals, surrender charges, policyholder assessments, as well as amounts representing the fair value of embedded derivative instruments associated with our IUL and indexed annuity products. During the third quarter of each year, we conduct our comprehensive review of the assumptions and projection models used in estimating these embedded derivatives and update assumptions as needed. We may also update these assumptions in other quarters as we become aware of information that is indicative of the need for such an update. |
Short-Term and Long-Term Debt | Short-Term and Long-Term Debt Short-term debt has contractual or expected maturities of one year or less. Long-term debt has contractual or expected maturities greater than one year. |
Payables for Collateral on Investments | Payables for Collateral on Investments When we enter into collateralized financing transactions on our investments, a liability is recorded equal to the cash or non-cash collateral received. This liability is included within payables for collateral on investments on the Consolidated Balance Sheets. Income and expenses associated with these transactions are recorded as investment income and investment expenses within net investment income on the Consolidated Statements of Comprehensive Income (Loss). Changes in payables for collateral on investments are reflected within cash flows from investing activities on the Consolidated Statements of Cash Flows. |
Contingencies and Commitments | Contingencies and Commitments A loss contingency is an existing condition, situation or set of circumstances involving uncertainty as to possible loss that will ultimately be resolved when one or more future events occur or fail to occur. Contingencies arising from environmental remediation costs, regulatory judgments, claims, assessments, guarantees, litigation, recourse reserves, fines, penalties and other sources are recorded when deemed probable and reasonably estimable, based on our best estimate. |
Fee Income | Fee Income Fee income for investment and interest-sensitive life insurance contracts consists of asset-based fees, percent of premium charges, contract administration charges and surrender charges that are assessed against policyholder account balances. Investment products consist primarily of individual and group variable and fixed annuities. Interest-sensitive life insurance products include UL, VUL, linked-benefit UL and VUL and other interest-sensitive life insurance policies. These products include life insurance sold to individuals, corporate-owned life insurance and bank-owned life insurance. The timing of revenue recognition as it relates to fees assessed on investment contracts is determined based on the nature of such fees. Asset-based fees and contract administration charges are assessed on a daily or monthly basis and recognized as revenue as performance obligations are met, over the period underlying customer assets are owned or advisory services are provided. Percent of premium charges are assessed at the time of premium payment and recognized as revenue when assessed and earned. Certain amounts assessed that represent compensation for services to be provided in future periods are reported as unearned revenue and recognized in income over the periods benefited. Surrender charges are recognized upon surrender of a contract by the policyholder in accordance with contractual terms. For investment and interest-sensitive life insurance contracts, the amounts collected from policyholders are considered deposits and are not included in revenue. Wholesaling-related 12b-1 fees received from separate account fund sponsors as compensation for servicing the underlying mutual funds are recorded as revenues based on a contractual percentage of the market value of mutual fund assets over the period shares are owned by customers. Net investment advisory fees related to asset management of certain separate account funds are recorded as revenues based on a contractual percentage of the customer’s managed assets over the period advisory services are provided. |
Insurance Premiums | Insurance Premiums Insurance premiums consist primarily of group insurance products, traditional life insurance and payout annuities with life contingencies. These insurance premiums are recognized as revenue when due. |
Net Investment Income | Net Investment Income We earn investment income on the underlying general account investments supporting our fixed products less related expenses. Dividends and interest income, recorded in net investment income, are recognized when earned. Amortization of premiums and accretion of discounts on investments in debt securities are reflected in net investment income over the contractual terms of the investments in a manner that produces a constant effective yield. For CLOs and MBS, included in the trading and fixed maturity AFS securities portfolios, we recognize income using a constant effective yield based on anticipated prepayments and the estimated economic life of the securities. When actual prepayments differ significantly from originally anticipated prepayments, the retrospective effective yield is recalculated to reflect actual payments to date and a catch up adjustment is recorded in the current period. In addition, the new effective yield, which reflects anticipated future payments, is used prospectively. Any adjustments resulting from changes in effective yield are reflected in net investment income on the Consolidated Statements of Comprehensive Income (Loss). |
Realized Gain (Loss) | Realized Gain (Loss) Realized gain (loss) includes realized gains and losses from the sale of investments, write-downs for impairments of investments and changes in the allowance for credit losses for financial assets, changes in fair value of 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-related 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 reported net of allocations of investment gains and losses to certain policyholders, certain funds withheld on reinsurance arrangements and certain modified coinsurance arrangements for which we have a contractual obligation. |
MRB Gain (Loss) | MRB Gain (Loss) MRB gain (loss) includes the change in fair value of MRB and ceded MRB assets and liabilities. Changes in the fair value of MRB assets and liabilities are recognized in net income (loss), except for the portion attributable to the change in non-performance risk that is recognized in OCI. Changes in the fair value of ceded MRB assets and liabilities, including the changes in our counterparties’ non-performance risks, are recognized in net income (loss). |
Other Revenues | Other Revenues Other revenues consist primarily of fees attributable to broker-dealer services recorded as performance obligations are met, either at the time of sale or over time based on a contractual percentage of customer account balances, and proceeds from reinsurance recaptures. The broker-dealer services primarily relate to our retail sales network and consist of commission revenue for the sale of non-affiliated securities recorded on a trade date basis and advisory fee income. Advisory fee income is asset-based revenues recorded as earned based on a contractual percentage of customer account balances. Other revenues earned by our Group Protection segment consist of fees from administrative services performed, which are recognized as performance obligations are met over the terms of the underlying agreements. |
Interest Credited | Interest Credited We credit interest to our policyholder account balances based on the contractual terms supporting our products. |
Benefits | Benefits Benefits for UL and other interest-sensitive life insurance products include benefit claims incurred during the period in excess of contract account balances. Benefits also include the change in reserves for life insurance products with secondary guarantee benefits, annuity products with guaranteed death and living benefits and certain annuities with life contingencies. For traditional life, group life and disability income products, benefits are recognized when incurred in a manner consistent with the related premium recognition policies. |
Policyholder Liability Remeasurement Gain (Loss) | Policyholder Liability Remeasurement Gain (Loss) Policyholder liability remeasurement gain (loss) recognized in net income (loss) includes remeasurement gains and losses resulting from updates in cash flow assumptions and actual variance from expected experience used in the net premium ratio or benefit ratio calculation for future policy benefits associated with traditional life insurance and limited payment life-contingent annuity products, liabilities for future claims associated with our group products, and additional liabilities for other insurance benefits on certain guaranteed benefits associated with our UL products. Policyholder liability remeasurement gain (loss) recognized in OCI includes any changes resulting from the discount rate remeasurement of future policy benefits associated with traditional life insurance and limited payment life-contingent annuity products and liabilities for future claims associated with our group products as of each reporting period. |
Spark Program Expense | Spark Program Expense Spark program expense consists primarily of costs related to our Spark Initiative. |
Pension and Other Postretirement Benefit Plans | Pension and Other Postretirement Benefit Plans Pursuant to the accounting rules for our obligations to employees and agents under our various pension and other postretirement benefit plans, we are required to make a number of assumptions to estimate related liabilities and expenses. The mortality assumption is based on actual and anticipated plan experience, determined using acceptable actuarial methods. We use assumptions for the weighted-average discount rate and expected return on plan assets to estimate pension expense. The discount rate assumptions are determined using an analysis of current market information and the projected benefit flows associated with these plans. The expected long-term rate of return on plan assets is based on historical and projected future rates of return on the funds invested in the plan. The calculation of our accumulated postretirement benefit obligation also uses an assumption of weighted-average annual rate of increase in the per capita cost of covered benefits, which reflects a health care cost trend rate. |
Stock-Based Compensation | Stock-Based Compensation In general, we expense the fair value of stock awards included in our incentive compensation plans. As of the date LNC’s Board of Directors approves stock awards, the fair value of stock options is determined using a Black-Scholes options valuation methodology, and the fair value of other stock awards is based upon the market value of the stock. The fair value of the awards is expensed over the performance or service period, which generally corresponds to the vesting period, and is recognized as an increase to common stock in stockholder’s equity. We apply an estimated forfeiture rate to our accrual of compensation cost. We classify certain stock awards as liabilities. For these awards, the settlement value is classified as a liability on the Consolidated Balance Sheets, and the liability is marked-to-market through net income at the end of each reporting period. Stock-based compensation expense is reflected in commissions and other expenses on the Consolidated Statements of Comprehensive Income (Loss). |
Interest and Debt Expense | Interest and Debt Expense Interest expense on our short-term and long-term debt is recognized as due and any associated premiums, discounts and debt issuance costs are amortized (accreted) over the term of the related borrowing utilizing the effective interest method. In addition, gains or losses related to certain derivative instruments associated with debt are recognized in interest and debt expense during the period of the change. |
Income Taxes | Income Taxes LNC files a U.S. consolidated income tax return that includes us and LNC’s other eligible subsidiaries. Ineligible subsidiaries file separate individual corporate tax returns. Deferred income taxes are recognized, based on enacted rates, when assets and liabilities have different values for financial statement and tax reporting purposes. A valuation allowance is recorded to the extent required. Considerable judgment and the use of estimates are required in determining whether a valuation allowance is necessary and, if so, the amount of such valuation allowance. In evaluating the need for a valuation allowance, we consider many factors, including: the nature and character of the deferred tax assets and liabilities; taxable income in prior carryback years; future reversals of temporary differences; the length of time carryovers can be utilized; and any tax planning strategies we would employ to avoid a tax benefit from expiring unused. |
Nature of Operations, Basis o_3
Nature of Operations, Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Nature of Operations, Basis of Presentation and Summary of Significant Accounting Policies [Abstract] | |
Summary of DAC, VOBA, DSI and DFEL Amortization Basis and Expected Amortization Period by Reportable Segment | Reportable Segment Amortization Basis Expected Amortization Period Annuities Total deposits paid to date on policies in force Between 30 to 40 years Life Insurance Policy count of policies in force On average 60 years Group Protection Group certificate contracts in force 4 years Retirement Plan Services Lives in force Between 40 to 50 years |
Adoption of ASU 2018-12 (Tables
Adoption of ASU 2018-12 (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Adoption of ASU 2018-12 [Abstract] | |
Cumulative Effect Adjustments to Components of Stockholders’ Equity | Total Retained Stockholder’s Earnings AOCI Equity Shadow impacts: DAC, VOBA, DSI and DFEL $ - $ 2,271 $ 2,271 Additional liabilities for other insurance benefits - 1,197 1,197 LFPB and other (1) ( 121 ) ( 1,520 ) ( 1,641 ) MRBs (2) ( 1,699 ) 2,874 1,175 Total $ ( 1,820 ) $ 4,822 $ 3,002 (1) Includes impacts to reserves and ceded reserves reported within future contract benefits and reinsurance recoverables, respectively on the Consolidated Balance Sheets, excluding shadow impacts on additional liabilities for other insurance benefits. (2) Includes impacts related to MRB assets and MRB liabilities reported on the Consolidated Balance Sheets, and ceded MRBs reported within other assets on the Consolidated Balance Sheets. |
Effect of Accounting Adoption to Consolidated Balance Sheets | Total Retained Stockholder’s Earnings AOCI Equity DAC, VOBA and DSI $ - $ 6,079 $ 6,079 Reinsurance recoverables 607 2,556 3,163 Other assets (1) 5,795 - 5,795 Future contract benefits ( 760 ) ( 2,966 ) ( 3,726 ) MRBs, net ( 7,956 ) 3,656 ( 4,300 ) DFEL - ( 3,190 ) ( 3,190 ) Other liabilities (2) 494 ( 1,313 ) ( 819 ) Total $ ( 1,820 ) $ 4,822 $ 3,002 (1) Consists primarily of ceded MRB adjustments. (2) Consists of state and federal tax adjustments. |
Summary of Changes in DAC, VOBA and DSI | Impact from Balance Removal of Balance Pre-Adoption Shadow Post-Adoption December 31, Balances January 1, 2020 from AOCI 2021 DAC Variable Annuities $ 3,675 $ 52 $ 3,727 Fixed Annuities 264 215 479 Traditional Life 1,041 - 1,041 UL and Other 297 5,031 5,328 Group Protection 187 - 187 Retirement Plan Services 126 112 238 Total DAC 5,590 5,410 11,000 VOBA Fixed Annuities - 23 23 Traditional Life 67 - 67 UL and Other 167 630 797 Total VOBA 234 653 887 DSI (1) Variable Annuities 194 2 196 Fixed Annuities 17 13 30 UL and Other 35 - 35 Retirement Plan Services 13 1 14 Total DSI 259 16 275 Total DAC, VOBA and DSI $ 6,083 $ 6,079 $ 12,162 (1) Pre-adoption DSI balance was previously reported in other assets on the Consolidated Balance Sheets. |
Summary of Changes in DFEL | Impact from Balance Removal of Balance Pre-Adoption Shadow Post-Adoption December 31, Balances January 1, 2020 from AOCI 2021 DFEL (1) Variable Annuities $ 319 $ 5 $ 324 UL and Other 77 3,185 3,262 Total DFEL $ 396 $ 3,190 $ 3,586 (1) Pre-adoption DFEL balance was previously reported in other contract holder funds on the Consolidated Balance Sheets. |
Summary of Changes in Future Contract Benefits | Impact from Single-A Balance Removal of Discount Cumulative Balance Pre-Adoption Shadow Rate Effect to Post-Adoption December 31, Balances Measurement Retained January 1, 2020 (1) from AOCI in AOCI Earnings 2021 LFPB Payout Annuities $ 2,313 $ ( 105 ) $ 415 $ 44 $ 2,667 Traditional Life 3,062 - 852 ( 2 ) 3,912 Liability for Future Claims Group Protection 5,422 - 517 - 5,939 Additional Liabilities for Other Insurance Benefits UL and Other 13,687 ( 1,515 ) - 92 12,264 Other Operations (2) 10,309 ( 80 ) 2,882 626 13,737 Other (3) 3,525 - - - 3,525 Total future contract benefits $ 38,318 $ ( 1,700 ) $ 4,666 $ 760 $ 42,044 (1) Balance pre-adoption excludes features that meet the definition of an MRB upon transition, including features that were previously accounted for as an additional liability. Also, balance pre-adoption reflects certain reclassifications of non-life contingent account balances from future contract benefits to policyholder account balances within the Consolidated Balance Sheets. (2) Represents future contract benefits reported in Other Operations primarily attributable to the indemnity reinsurance agreements with Protective ($ 6.3 billion and $ 7.4 billion as of December 31, 2020, and January 1, 2021, respectively) and Swiss Re ($ 1.8 billion and $ 3.3 billion as of December 31, 2020, and January 1, 2021, respectively). Includes LFPB and additional liabilities balances. (3) Represents other miscellaneous reserves outside the scope of ASU 2018-12. |
Summary of Changes in Reinsurance Recoverables | Single-A Balance Discount Cumulative Balance Pre-Adoption Rate Effect to Post-Adoption December 31, Measurement Retained January 1, 2020 (1) in AOCI Earnings 2021 Reinsured LFPB Payout Annuities $ 5 $ - $ - $ 5 Traditional Life 372 88 - 460 Reinsured Liability for Future Claims Group Protection 148 14 - 162 Reinsured Additional Liabilities for Other Insurance Benefits UL and Other 922 - ( 3 ) 919 Reinsured Other Operations (2) 14,757 2,454 610 17,821 Reinsured Other (3) 1,346 - - 1,346 Total reinsurance recoverables $ 17,550 $ 2,556 $ 607 $ 20,713 (1) Balance pre-adoption excludes features that meet the definition of a ceded MRB upon transition, including features that were previously accounted for as reinsured additional liabilities. (2) Represents reinsurance recoverables reported in Other Operations primarily attributable to the indemnity reinsurance agreements with Protective ($ 12.0 billion and $ 13.2 billion as of December 31, 2020, and January 1, 2021, respectively) and Swiss Re ($ 1.7 billion and $ 3.2 billion as of December 31, 2020, and January 1, 2021, respectively). Includes reinsured LFPB and reinsured additional liabilities balances. (3) Represents other miscellaneous reinsurance recoverables outside the scope of ASU 2018-12. |
Summary of Changes in Net Liability Position of MRBs | Balance Cumulative Cumulative Balance Pre-Adoption Effect of Effect to Post-Adoption December 31, Credit Risk Retained January 1, 2020 (1) to AOCI Earnings 2021 MRBs, Net Variable Annuities $ 831 $ ( 3,592 ) $ 7,968 $ 5,207 Fixed Annuities 192 ( 52 ) ( 22 ) 118 Retirement Plan Services 11 ( 12 ) 10 9 Total MRBs, net $ 1,034 $ ( 3,656 ) $ 7,956 $ 5,334 (1) Balance pre-adoption includes all features that meet the definition of an MRB upon transition, including features that were previously accounted for as additional liabilities or embedded derivatives. |
Summary of Changes in Net Asset Position of Ceded MRBs | Balance Cumulative Balance Pre-Adoption Effect to Post-Adoption December 31, Retained January 1, 2020 (1) Earnings 2021 Ceded MRBs, Net Variable Annuities $ 828 $ 5,700 $ 6,528 Retirement Plan Services 1 10 11 Total ceded MRBs, net $ 829 $ 5,710 $ 6,539 (1) Balance pre-adoption includes all features that meet the definition of a ceded MRB upon transition, including features that were previously accounted for as reinsured additional liabilities or embedded derivatives. |
Adoption of New Accounting Standard Effect on Financial Statements | The following summarizes the effect of the adoption of ASU 2018-12 (in millions) on certain financial statement line items within the previously reported Consolidated Balance Sheets: As of December 31, 2022 Adoption As of New Previously Accounting As Reported (1) Standard Adjusted Deferred acquisition costs, value of business acquired and deferred sales inducements (2) $ 13,873 $ ( 1,610 ) $ 12,263 Reinsurance recoverables, net of allowance for credit losses 23,910 ( 2,646 ) 21,264 Market risk benefit assets - 2,807 2,807 Other assets (2) 21,080 ( 1,154 ) 19,926 Total assets 338,266 ( 2,603 ) 335,663 Future contract benefits (2) 41,203 ( 2,901 ) 38,302 Market risk benefit liabilities - 2,078 2,078 Deferred front-end loads (2) 5,695 ( 650 ) 5,045 Other liabilities (2) 16,125 ( 1,468 ) 14,657 Total liabilities 330,000 ( 2,941 ) 327,059 Retained earnings 2,436 ( 1,022 ) 1,414 Accumulated other comprehensive income (loss) ( 7,073 ) 1,360 ( 5,713 ) Total stockholder’s equity 8,266 338 8,604 (1) The amounts as previously reported were derived from Note 1 in our 2022 Form 10-K, as updated by the May 2023 Form 8-K. (2) Certain amounts have been reclassified to conform to the presentation adopted in the current period. The following summarizes the effect of the adoption of ASU 2018-12 (in millions) on certain financial statement line items within the previously reported Consolidated Statements of Comprehensive Income (Loss): For the Three Months Ended September 30, 2022 Adoption As of New Previously Accounting As Reported (1) Standard Adjusted Fee income $ 1,438 $ ( 114 ) $ 1,324 Realized gain (loss) 11 22 33 Total revenues 4,357 ( 92 ) 4,265 Benefits 4,498 ( 2,404 ) 2,094 Interest credited 717 5 722 Market risk benefit (gain) loss - ( 74 ) ( 74 ) Policyholder liability remeasurement (gain) loss - 2,370 2,370 Commissions and other expenses 1,205 14 1,219 Total expenses 7,134 ( 89 ) 7,045 Income (loss) before taxes ( 2,777 ) ( 3 ) ( 2,780 ) Net income (loss) ( 2,289 ) ( 3 ) ( 2,292 ) Unrealized investment gain (loss) ( 4,140 ) ( 769 ) ( 4,909 ) Market risk benefit non-performance risk gain (loss) - ( 150 ) ( 150 ) Policyholder liability discount rate remeasurement gain (loss) - 517 517 Total other comprehensive income (loss), net of tax ( 4,140 ) ( 402 ) ( 4,542 ) Comprehensive income (loss) ( 6,429 ) ( 405 ) ( 6,834 ) For the Nine Months Ended September 30, 2022 Adoption As of New Previously Accounting As Reported (1) Standard Adjusted Fee income $ 4,384 $ ( 319 ) $ 4,065 Realized gain (loss) 338 203 541 Total revenues 13,471 ( 116 ) 13,355 Benefits 8,748 ( 2,630 ) 6,118 Interest credited 2,109 12 2,121 Market risk benefit (gain) loss - 755 755 Policyholder liability remeasurement (gain) loss - 2,496 2,496 Commissions and other expenses 3,473 118 3,591 Total expenses 15,179 750 15,929 Income (loss) before taxes ( 1,708 ) ( 866 ) ( 2,574 ) Federal income tax expense (benefit) ( 320 ) ( 180 ) ( 500 ) Net income (loss) ( 1,388 ) ( 686 ) ( 2,074 ) Unrealized investment gain (loss) ( 14,577 ) ( 4,150 ) ( 18,727 ) Market risk benefit non-performance risk gain (loss) - 224 224 Policyholder liability discount rate remeasurement gain (loss) - 1,943 1,943 Total other comprehensive income (loss), net of tax ( 14,577 ) ( 1,983 ) ( 16,560 ) Comprehensive income (loss) ( 15,965 ) ( 2,669 ) ( 18,634 ) (1) The amounts as previously reported were derived from Note 24 in our 2022 Form 10-K. The following summarizes the effect of the adoption of ASU 2018-12 (in millions) on certain financial statement line items within the previously reported Consolidated Statements of Stockholder’s Equity: For the Three Months Ended September 30, 2022 Adoption As of New Previously Accounting As Reported (1) Standard Adjusted Retained earnings balance as of beginning-of-period $ 4,962 $ ( 1,315 ) $ 3,647 Net income (loss) ( 2,289 ) ( 3 ) ( 2,292 ) Retained earnings balance as of end-of-period 2,398 ( 1,318 ) 1,080 Accumulated other comprehensive income (loss) balance as of beginning-of-period ( 3,893 ) 2,125 ( 1,768 ) Other comprehensive income (loss), net of tax ( 4,140 ) ( 402 ) ( 4,542 ) Accumulated other comprehensive income (loss) balance as of end-of-period ( 8,033 ) 1,723 ( 6,310 ) Total stockholder’s equity as of end-of-period 6,479 405 6,884 For the Nine Months Ended September 30, 2022 Adoption As of New Previously Accounting As Reported (1) Standard Adjusted Retained earnings balance as of beginning-of-year $ 4,366 $ ( 632 ) $ 3,734 Net income (loss) ( 1,388 ) ( 686 ) ( 2,074 ) Retained earnings balance as of end-of-period 2,398 ( 1,318 ) 1,080 Accumulated other comprehensive income (loss) balance as of beginning-of-year 6,544 3,706 10,250 Other comprehensive income (loss), net of tax ( 14,577 ) ( 1,983 ) ( 16,560 ) Accumulated other comprehensive income (loss) balance as of end-of-period ( 8,033 ) 1,723 ( 6,310 ) Total stockholder’s equity as of end-of-period 6,479 405 6,884 (1) The amounts as previously reported were derived from Note 24 in our 2022 Form 10-K. The following summarizes the effect of the adoption of ASU 2018-12 (in millions) on certain financial statement line items within the previously reported Consolidated State ments of Cash Flows: For the Nine Months Ended September 30, 2022 Adoption As of New Previously Accounting As Reported (1) Standard Adjusted Net income (loss) $ ( 1,388 ) $ ( 686 ) $ ( 2,074 ) Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Realized (gain) loss ( 338 ) ( 203 ) ( 541 ) Market risk benefit (gain) loss - 755 755 Change in: Deferred acquisition costs, value of business acquired, deferred sales inducements and deferred front-end loads 3 367 370 Insurance liabilities and reinsurance-related balances (2) 2,016 ( 72 ) 1,944 Accrued expenses ( 375 ) ( 4 ) ( 379 ) Federal income tax accruals ( 308 ) ( 181 ) ( 489 ) Other (2) 395 24 419 (1) The amounts as previously reported were derived from Note 24 in our 2022 Form 10-K . (2) Certain amounts have been reclassified to conform to the presentation adopted in the current period. |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Reconciliation Of Available-For-Sale Securities From Cost Basis To Fair Value | As of September 30, 2023 Allowance Amortized Gross Unrealized for Credit Fair Cost Gains Losses Losses Value Fixed maturity AFS securities: Corporate bonds $ 87,724 $ 433 $ 9,387 $ 9 $ 78,761 U.S. government bonds 417 2 47 - 372 State and municipal bonds 4,950 67 346 - 4,671 Foreign government bonds 321 10 61 - 270 RMBS 2,067 18 210 6 1,869 CMBS 1,937 - 236 - 1,701 ABS 13,177 36 820 5 12,388 Hybrid and redeemable preferred securities 350 24 18 1 355 Total fixed maturity AFS securities $ 110,943 $ 590 $ 11,125 $ 21 $ 100,387 As of December 31, 2022 Allowance Amortized Gross Unrealized for Credit Fair Cost Gains Losses Losses Value Fixed maturity AFS securities: Corporate bonds $ 88,950 $ 763 $ 10,538 $ 9 $ 79,166 U.S. government bonds 377 5 31 - 351 State and municipal bonds 5,198 170 483 - 4,885 Foreign government bonds 339 17 45 - 311 RMBS 2,025 21 203 7 1,836 CMBS 1,908 3 244 - 1,667 ABS 11,791 37 925 4 10,899 Hybrid and redeemable preferred securities 356 25 30 1 350 Total fixed maturity AFS securities $ 110,944 $ 1,041 $ 12,499 $ 21 $ 99,465 |
Available-For-Sale Securities By Contractual Maturities | Amortized Fair Cost Value Due in one year or less $ 3,950 $ 3,907 Due after one year through five years 18,900 17,925 Due after five years through ten years 18,279 16,548 Due after ten years 52,633 46,049 Subtotal 93,762 84,429 Structured securities (RMBS, CMBS, ABS) 17,181 15,958 Total fixed maturity AFS securities $ 110,943 $ 100,387 |
Fair Value And Gross Unrealized Losses In A Continuous Unrealized Loss Position | As of September 30, 2023 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 $ 19,506 $ 1,136 $ 47,089 $ 8,251 $ 66,595 $ 9,387 U.S. government bonds 70 5 221 42 291 47 State and municipal bonds 1,312 27 1,607 319 2,919 346 Foreign government bonds 71 6 120 55 191 61 RMBS 602 31 1,082 179 1,684 210 CMBS 608 18 1,077 218 1,685 236 ABS 2,375 67 7,739 753 10,114 820 Hybrid and redeemable preferred securities 59 4 116 14 175 18 Total fixed maturity AFS securities $ 24,603 $ 1,294 $ 59,051 $ 9,831 $ 83,654 $ 11,125 Total number of fixed maturity AFS securities in an unrealized loss position 8,537 As of December 31, 2022 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 $ 57,656 $ 8,684 $ 6,867 $ 1,854 $ 64,523 $ 10,538 U.S. government bonds 236 25 27 6 263 31 State and municipal bonds 1,850 414 227 69 2,077 483 Foreign government bonds 122 18 58 27 180 45 RMBS 1,337 160 191 43 1,528 203 CMBS 1,224 156 312 88 1,536 244 ABS 6,712 551 3,325 374 10,037 925 Hybrid and redeemable preferred securities 61 5 98 25 159 30 Total fixed maturity AFS securities $ 69,198 $ 10,013 $ 11,105 $ 2,486 $ 80,303 $ 12,499 Total number of fixed maturity AFS securities in an unrealized loss position 8,106 (1) As of September 30, 2023, and December 31, 2022, we recognized $ 11 million and $ 6 million of gross unrealized losses, respectively, in 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 September 30, 2023 Gross Number Fair Unrealized of Value Losses Securities (1) Less than six months $ 10,143 $ 3,100 1,344 Six months or greater, but less than nine months 782 282 172 Nine months or greater, but less than twelve months 183 84 25 Twelve months or greater 5,240 2,600 1,052 Total $ 16,348 $ 6,066 2,593 As of December 31, 2022 Gross Number Fair Unrealized of Value Losses Securities (1) Less than six months $ 10,895 $ 3,514 1,489 Six months or greater, but less than nine months 4,256 2,150 640 Nine months or greater, but less than twelve months 362 243 73 Twelve months or greater 2 - 15 Total $ 15,515 $ 5,907 2,217 (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 September 30, 2023 Corporate Bonds RMBS Other Total Balance as of beginning-of-period $ 13 $ 6 $ 6 $ 25 Additions from purchases of PCD debt securities (1) - - - - Additions for securities for which credit losses were not previously recognized 1 - - 1 Additions (reductions) for securities for which credit losses were previously recognized - - - - Reductions for securities charged-off ( 5 ) - - ( 5 ) Balance as of end-of-period (2) $ 9 $ 6 $ 6 $ 21 For the Nine Months Ended September 30, 2023 Corporate Bonds RMBS Other Total Balance as of beginning-of-year $ 9 $ 7 $ 5 $ 21 Additions from purchases of PCD debt securities (1) - - - - Additions for securities for which credit losses were not previously recognized 21 - - 21 Additions (reductions) for securities for which credit losses were previously recognized ( 3 ) ( 1 ) 1 ( 3 ) Reductions for securities disposed ( 1 ) - - ( 1 ) Reductions for securities charged-off ( 17 ) - - ( 17 ) Balance as of end-of-period (2) $ 9 $ 6 $ 6 $ 21 For the Three Months Ended September 30, 2022 Corporate Bonds RMBS Other Total Balance as of beginning-of-period $ 7 $ 3 $ 2 $ 12 Additions from purchases of PCD debt securities (1) - - - - Additions for securities for which credit losses were not previously recognized - 2 1 3 Additions (reductions) for securities for which credit losses were previously recognized - - 3 3 Balance as of end-of-period (2) $ 7 $ 5 $ 6 $ 18 For the Nine Months Ended September 30, 2022 Corporate Bonds RMBS Other Total Balance as of beginning-of-year $ 17 $ 1 $ 1 $ 19 Additions from purchases of PCD debt securities (1) - - - - Additions for securities for which credit losses were not previously recognized 2 2 1 5 Additions (reductions) for securities for which credit losses were previously recognized 1 2 4 7 Reductions for securities disposed ( 1 ) - - ( 1 ) Reductions for securities charged-off ( 12 ) - - ( 12 ) Balance as of end-of-period (2) $ 7 $ 5 $ 6 $ 18 (1) Represents purchased credit-deteriorated (“PCD”) fixed maturity AFS securities. (2) As of September 30, 2023 and 2022, accrued investment income on fixed maturity AFS securities totaled $ 1.2 billion and $ 1.1 billion, respectively, and was excluded from the estimate of credit losses. |
Composition Of Current And Past Due Mortgage Loans On Real Estate | As of September 30, 2023 As of December 31, 2022 Commercial Residential Total Commercial Residential Total Current $ 17,131 $ 1,555 $ 18,686 $ 16,913 $ 1,315 $ 18,228 30 to 59 days past due - 24 24 19 23 42 60 to 89 days past due - 13 13 - 6 6 90 or more days past due - 44 44 - 33 33 Allowance for credit losses ( 89 ) ( 24 ) ( 113 ) ( 83 ) ( 15 ) ( 98 ) Unamortized premium (discount) ( 7 ) 40 33 ( 9 ) 36 27 Mark-to-market gains (losses) (1) ( 27 ) 1 ( 26 ) ( 27 ) - ( 27 ) Total carrying value $ 17,008 $ 1,653 $ 18,661 $ 16,813 $ 1,398 $ 18,211 (1) Represents the mark-to-market on certain mortgage loans on real estate for which we have elected the fair value option. See Note 14 for additional information. |
Schedule Of Average Carrying Value Of Impaired Mortgage Loans On Real Estate | For the Three For the Nine Months Ended Months Ended September 30, September 30, 2023 2022 2023 2022 Average aggregate carrying value for impaired mortgage loans on real estate $ 34 $ 13 $ 25 $ 16 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 September 30, 2023 As of December 31, 2022 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 - 47 - 34 Total $ - $ 47 $ - $ 34 |
Changes In Allowance For Credit Losses On Mortgage Loans On Real Estate | For the Three Months Ended September 30, 2023 Commercial Residential Total Balance as of beginning-of-period $ 81 $ 23 $ 104 Additions (reductions) from provision for credit loss expense (1) 8 1 9 Additions from purchases of PCD mortgage loans on real estate - - - Balance as of end-of-period (2) $ 89 $ 24 $ 113 For the Nine Months Ended September 30, 2023 Commercial Residential Total Balance as of beginning-of-year $ 83 $ 15 $ 98 Additions (reductions) from provision for credit loss expense (1) 6 9 15 Additions from purchases of PCD mortgage loans on real estate - - - Balance as of end-of-period (2) $ 89 $ 24 $ 113 For the Three Months Ended September 30, 2022 Commercial Residential Total Balance as of beginning-of-period $ 72 $ 9 $ 81 Additions (reductions) from provision for credit loss expense (1) 8 2 10 Additions from purchases of PCD mortgage loans on real estate - - - Balance as of end-of-period (2) $ 80 $ 11 $ 91 For the Nine Months Ended September 30, 2022 Commercial Residential Total Balance as of beginning-of-year $ 78 $ 17 $ 95 Additions (reductions) from provision for credit loss expense (1) 2 ( 6 ) ( 4 ) Additions from purchases of PCD mortgage loans on real estate - - - Balance as of end-of-period (2) $ 80 $ 11 $ 91 (1) We recognized less than $( 1 ) million and $ 1 million of credit loss benefit (expense) related to unfunded commitments for mortgage loans on real estate for the three months ended September 30, 2023 and 2022, respectively. We recognized $( 1 ) million and less than $ 1 million of credit loss benefit (expense) related to unfunded commitments for mortgage loans on real estate for the nine months ended September 30, 2023 and 2022, respectively. (2) Accrued investment income on mortgage loans on real estate totaled $ 54 million and $ 50 million as of September 30, 2023 and 2022, respectively, and was excluded from the estimate of credit losses. |
Credit Loss Expense Incurred | For the Three For the Nine Months Ended Months Ended September 30, September 30, 2023 2022 2023 2022 Intent to Sell Impairments (1) Fixed maturity AFS securities: Corporate bonds $ ( 1,057 ) $ - $ ( 3,805 ) $ - State and municipal bonds ( 62 ) - ( 214 ) - RMBS ( 19 ) - ( 74 ) - CMBS ( 7 ) - ( 60 ) - ABS ( 4 ) - ( 57 ) - Hybrid and redeemable preferred securities ( 1 ) - ( 3 ) - Total intent to sell impairments $ ( 1,150 ) $ - $ ( 4,213 ) $ - Credit Loss Benefit (Expense) Fixed maturity AFS securities: Corporate bonds $ ( 1 ) $ - $ ( 16 ) $ ( 2 ) RMBS - ( 2 ) 1 ( 4 ) ABS - ( 3 ) ( 1 ) ( 5 ) Total credit loss benefit (expense) $ ( 1 ) $ ( 5 ) $ ( 16 ) $ ( 11 ) (1) Represents impairment of certain fixed maturity AFS securities in an unrealized loss position, resulting from the Company’s intent to sell these securities as part of the previously announced Fortitude Re reinsurance transaction. Within the investment portfolio anticipated to be sold in the transaction, there are additional fixed maturity AFS securities in an unrealized gain position of approximately $ 212 million pre-tax as of September 30, 2023. Pursuant to the applicable accounting guidance, the Company impaired the securities in a loss position down to fair market value upon entry into the agreement in the second quarter and recognized additional impairment on certain of these securities during the third quarter due to higher interest rates. The Company will recognize a gain for any securities in an unrealized gain position at the time when the transaction closes. See Note 8 for additional information. |
Payables For Collateral On Investments | As of September 30, 2023 As of December 31, 2022 Carrying Fair Carrying Fair Value Value Value Value Collateral payable for derivative investments (1) $ 4,522 $ 4,522 $ 3,210 $ 3,210 Securities pledged under securities lending agreements (2) 290 280 298 287 Investments pledged for FHLBI (3) 2,920 3,860 3,130 3,925 Total payables for collateral on investments $ 7,732 $ 8,662 $ 6,638 $ 7,422 (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. This also includes interest payable on collateral. See Note 6 for additional information. (2) Our pledged securities under securities lending agreements are included in fixed maturity AFS securities on the 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 FHLB of Indianapolis (“FHLBI”) are included in fixed maturity AFS securities and mortgage loans on real estate on the 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 Nine Months Ended September 30, 2023 2022 Collateral payable for derivative investments $ 1,312 $ ( 2,140 ) Securities pledged under securities lending agreements ( 8 ) 59 Investments pledged for FHLBI ( 210 ) - Total increase (decrease) in payables for collateral on investments $ 1,094 $ ( 2,081 ) |
Schedule Of Securities Pledged By Contractual Maturity | As of September 30, 2023 Overnight and Continuous Up to 30 Days 30 - 90 Days Greater Than 90 Days Total Securities Lending Corporate bonds $ 281 $ - $ - $ - $ 281 Foreign government bonds 1 - - - 1 Equity securities 8 - - - 8 Total gross secured borrowings $ 290 $ - $ - $ - $ 290 As of December 31, 2022 Overnight and Continuous Up to 30 Days 30 - 90 Days Greater Than 90 Days Total Securities Lending Corporate bonds $ 288 $ - $ - $ - $ 288 Foreign government bonds 2 - - - 2 Equity securities 8 - - - 8 Total gross secured borrowings $ 298 $ - $ - $ - $ 298 |
Commercial [Member] | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Mortgage Loans By Year Of Origination | 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 September 30, 2023 Debt- Debt- Debt- Service Service Service Less Coverage 65% Coverage Greater Coverage than 65% Ratio to 75% Ratio than 75% Ratio Total Origination Year 2023 $ 934 1.87 $ 48 1.42 $ - - $ 982 2022 1,766 2.06 88 2.06 1 1.13 1,855 2021 2,322 3.36 64 1.57 - - 2,386 2020 1,222 3.19 11 1.50 - - 1,233 2019 2,443 2.44 82 1.48 10 2.33 2,535 2018 and prior 7,980 2.42 152 1.59 1 1.67 8,133 Total $ 16,667 $ 445 $ 12 $ 17,124 As of December 31, 2022 Debt- Debt- Debt- Service Service Service Less Coverage 65% Coverage Greater Coverage than 65% Ratio to 75% Ratio than 75% Ratio Total Origination Year 2022 $ 1,769 2.06 $ 105 1.50 $ 2 1.45 $ 1,876 2021 2,335 3.05 72 1.53 - - 2,407 2020 1,280 2.99 17 1.58 - - 1,297 2019 2,643 2.17 81 1.50 29 1.58 2,753 2018 2,222 2.17 67 1.62 - - 2,289 2017 and prior 6,170 2.44 131 1.75 - - 6,301 Total $ 16,419 $ 473 $ 31 $ 16,923 |
Residential [Member] | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Mortgage Loans By Year Of Origination | As of September 30, 2023 Performing Nonperforming Total Origination Year 2023 $ 359 $ - $ 359 2022 552 17 569 2021 477 14 491 2020 83 1 84 2019 103 12 115 2018 and prior 55 3 58 Total $ 1,629 $ 47 $ 1,676 As of December 31, 2022 Performing Nonperforming Total Origination Year 2022 $ 578 $ 5 $ 583 2021 527 6 533 2020 90 3 93 2019 119 18 137 2018 65 2 67 2017 and prior - - - Total $ 1,379 $ 34 $ 1,413 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Derivative Instruments [Abstract] | |
Outstanding Derivative Instruments With Off-Balance-Sheet Risks | As of September 30, 2023 As of December 31, 2022 Notional Fair Value Notional Fair Value Amounts Asset Liability Amounts Asset Liability Qualifying Hedges Cash flow hedges: Interest rate contracts (1) $ 663 $ - $ 145 $ 1,377 $ 4 $ 232 Foreign currency contracts (1) 4,578 550 33 4,383 643 18 Total cash flow hedges 5,241 550 178 5,760 647 250 Fair value hedges: Interest rate contracts (1) 484 15 15 524 2 44 Non-Qualifying Hedges Interest rate contracts (1) 89,067 1,003 1,398 105,977 709 935 Foreign currency contracts (1) 353 24 1 395 27 2 Equity market contracts (1) 285,520 8,194 3,366 142,653 5,135 2,035 Commodity contracts (1) 27 9 11 13 14 3 Credit contracts (1) 307 - - - - - LPR ceded derivative (2) - 184 - - 212 - Embedded derivatives: Reinsurance-related (3) - 933 - - 681 - Indexed annuity and IUL contracts (3) (4) - 586 7,174 - 525 4,783 Total derivative instruments $ 380,999 $ 11,498 $ 12,143 $ 255,322 $ 7,952 $ 8,052 (1) These asset and liability balances are presented on a gross basis. Amounts are reported in derivative investments and other liabilities on the Consolidated Balance Sheets after the evaluation for right of offset subject to master netting agreements. (2) Reported in other assets on the Consolidated Balance Sheets. (3) Reported in other assets and other liabilities on the Consolidated Balance Sheets. (4) Reported in policyholder account balances on the Consolidated Balance Sheets. |
Maturity Of The Notional Amounts Of Derivative Financial Instruments | Remaining Life as of September 30, 2023 Less Than 1 – 5 6 – 10 11 – 30 Over 30 1 Year Years Years Years Years Total Interest rate contracts (1) $ 27,214 $ 16,713 $ 22,487 $ 20,800 $ 3,000 $ 90,214 Foreign currency contracts (2) 252 953 1,592 2,092 42 4,931 Equity market contracts 193,990 74,261 7,014 9 10,246 285,520 Commodity contracts 27 - - - - 27 Credit contracts - - 307 - - 307 Total derivative instruments with notional amounts $ 221,483 $ 91,927 $ 31,400 $ 22,901 $ 13,288 $ 380,999 (1) As of September 30, 2023, the latest maturity date for which we were hedging our exposure to the variability in future cash flows for these instruments was December 18, 2024 . (2) As of September 30, 2023, 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 September 30, December 31, September 30, December 31, 2023 2022 2023 2022 Line Item in the Consolidated Balance Sheets in which the Hedged Item is Included Fixed maturity AFS securities, at fair value $ 498 $ 587 $ - $ 44 |
Change In Unrealized Gain On Derivative Instruments In Accumulated OCI | For the Nine Months Ended September 30, 2023 2022 Unrealized Gain (Loss) on Derivative Instruments Balance as of beginning-of-year $ 301 $ 258 Other comprehensive income (loss): Unrealized holding gains (losses) arising during the period: Cash flow hedges: Interest rate contracts 102 ( 392 ) Foreign currency contracts ( 92 ) 178 Change in foreign currency exchange rate adjustment 30 623 Income tax benefit (expense) ( 9 ) ( 87 ) Less: Reclassification adjustment for gains (losses) included in net income (loss): Cash flow hedges: Interest rate contracts (1) - 1 Foreign currency contracts (1) 42 48 Foreign currency contracts (2) 4 29 Income tax benefit (expense) ( 10 ) ( 16 ) Balance as of end-of-period $ 296 $ 518 (1) The OCI offset is reported within net investment income on the Consolidated Statements of Comprehensive Income (Loss). (2) The OCI offset is reported within realized gain (loss) on the Consolidated Statements of Comprehensive Income (Loss). |
Effects Of Qualifying And Non-Qualifying Hedges | Gain (Loss) Recognized in Income For the Three Months Ended September 30, 2023 2022 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 $ ( 867 ) $ 1,466 $ 1,895 $ 33 $ 1,241 $ 2,094 Qualifying Hedges Gain or (loss) on fair value hedging relationships: Interest rate contracts: Hedged items - ( 41 ) - - ( 42 ) - Derivatives designated as hedging instruments - 41 - - 42 - Gain or (loss) on cash flow hedging relationships: Interest rate contracts: Amount of gain or (loss) reclassified from AOCI into income - - - - - - Foreign currency contracts: Amount of gain or (loss) reclassified from AOCI into income 2 14 - 25 19 - Non-Qualifying Hedges Interest rate contracts ( 604 ) - - ( 552 ) - - Foreign currency contracts - - - 4 - - Equity market contracts 163 - - ( 188 ) - - Commodity contracts ( 1 ) - - ( 6 ) - - Credit contracts - - - ( 2 ) - - LPR ceded derivative - - 18 - - 24 Embedded derivatives: Reinsurance-related 243 - - 382 - - Indexed annuity and IUL contracts 572 - - 347 - - Gain (Loss) Recognized in Income For the Nine Months Ended September 30, 2023 2022 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 $ ( 4,513 ) $ 4,351 $ 5,766 $ 541 $ 3,931 $ 6,118 Qualifying Hedges Gain or (loss) on fair value hedging relationships: Interest rate contracts: Hedged items - ( 44 ) - - ( 164 ) - Derivatives designated as - hedging instruments - 44 - - 164 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 4 42 - 29 48 - Non-Qualifying Hedges Interest rate contracts ( 592 ) - - ( 1,998 ) - - Foreign currency contracts ( 2 ) - - 6 - - Equity market contracts 913 - - ( 2,100 ) - - Commodity contracts 10 - - 4 - - Credit contracts ( 2 ) - - ( 2 ) - - LPR ceded derivative - - 28 - - 127 Embedded derivatives: Reinsurance-related 252 - - 1,361 - - Indexed annuity and IUL contracts ( 1,706 ) - - 3,030 - - |
Schedule Of Collateral Amounts With Rights To Reclaim Or Obligation To Return Cash | As of September 30, 2023 As of December 31, 2022 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- $ 1,061 $ ( 42 ) $ 383 $ ( 6 ) A+ 3,326 ( 379 ) 1,718 ( 151 ) A 57 ( 49 ) 1,099 - A- 58 - - - $ 4,502 $ ( 470 ) $ 3,200 $ ( 157 ) |
Schedule Of Offsetting Assets And Liabilities | As of September 30, 2023 Embedded Derivative Derivative Instruments Instruments Total Financial Assets Gross amount of recognized assets $ 8,553 $ 1,519 $ 10,072 Gross amounts offset ( 3,099 ) - ( 3,099 ) Net amount of assets 5,454 1,519 6,973 Gross amounts not offset: Cash collateral ( 4,502 ) - ( 4,502 ) Non-cash collateral (1) ( 952 ) - ( 952 ) Net amount $ - $ 1,519 $ 1,519 Financial Liabilities Gross amount of recognized liabilities $ 1,870 $ 7,174 $ 9,044 Gross amounts offset ( 1,242 ) - ( 1,242 ) Net amount of liabilities 628 7,174 7,802 Gross amounts not offset: Cash collateral ( 470 ) - ( 470 ) Non-cash collateral (2) ( 158 ) - ( 158 ) Net amount $ - $ 7,174 $ 7,174 (1) Excludes excess non-cash collateral received of $ 826 million, as the collateral offset is limited to the net estimated fair value of derivatives after application of netting arrangements. (2) Excludes excess non-cash collateral pledged of $ 320 million, as the collateral offset is limited to the net estimated fair value of derivatives after application of netting arrangements. As of December 31, 2022 Embedded Derivative Derivative Instruments Instruments Total Financial Assets Gross amount of recognized assets $ 6,483 $ 1,206 $ 7,689 Gross amounts offset ( 2,964 ) - ( 2,964 ) Net amount of assets 3,519 1,206 4,725 Gross amounts not offset: Cash collateral ( 3,200 ) - ( 3,200 ) Non-cash collateral (1) ( 319 ) - ( 319 ) Net amount $ - $ 1,206 $ 1,206 Financial Liabilities Gross amount of recognized liabilities $ 304 $ 4,783 $ 5,087 Gross amounts offset ( 50 ) - ( 50 ) Net amount of liabilities 254 4,783 5,037 Gross amounts not offset: Cash collateral ( 157 ) - ( 157 ) Non-cash collateral (2) ( 46 ) - ( 46 ) Net amount $ 51 $ 4,783 $ 4,834 (1) Excludes excess non-cash collateral received of $ 1.1 billion, as the collateral offset is limited to the net estimated fair value of derivatives after application of netting arrangements. (2) There was no excess non-cash collateral pledged as of December 31, 2022. |
DAC, VOBA, DSI and DFEL (Tables
DAC, VOBA, DSI and DFEL (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
DAC, VOBA, DSI and DFEL [Abstract] | |
Reconciliation of DAC, VOBA and DSI | As of As of September 30, December 31, 2023 2022 DAC, VOBA and DSI Variable Annuities $ 4,027 $ 4,047 Fixed Annuities 454 479 Traditional Life 1,372 1,336 UL and Other 6,099 6,002 Group Protection 147 141 Retirement Plan Services 264 258 Total DAC, VOBA and DSI $ 12,363 $ 12,263 |
Reconciliation of DFEL | As of As of September 30, December 31, 2023 2022 DFEL Variable Annuities $ 303 $ 310 UL and Other 5,343 4,735 Total DFEL $ 5,646 $ 5,045 |
DAC | For the Nine Months Ended September 30, 2023 Retirement Variable Fixed Traditional UL and Group Plan Annuities Annuities Life Other Protection Services Balance as of beginning-of-year $ 3,880 $ 439 $ 1,286 $ 5,518 $ 141 $ 241 Deferrals 269 31 148 346 79 15 Amortization ( 281 ) ( 51 ) ( 106 ) ( 217 ) ( 73 ) ( 14 ) Balance as of end-of-period $ 3,868 $ 419 $ 1,328 $ 5,647 $ 147 $ 242 For the Year Ended December 31, 2022 Retirement Variable Fixed Traditional UL and Group Plan Annuities Annuities Life Other Protection Services Balance as of beginning-of-year $ 3,860 $ 448 $ 1,146 $ 5,269 $ 140 $ 239 Deferrals 390 60 266 537 98 21 Amortization ( 370 ) ( 69 ) ( 126 ) ( 288 ) ( 97 ) ( 19 ) Balance as of end-of-year $ 3,880 $ 439 $ 1,286 $ 5,518 $ 141 $ 241 |
VOBA | For the Nine Months Ended September 30, 2023 Fixed Traditional UL and Annuities Life Other Balance as of beginning-of-year $ 17 $ 50 $ 454 Deferrals - - 1 Amortization ( 2 ) ( 6 ) ( 32 ) Balance as of end-of-period $ 15 $ 44 $ 423 For the Year Ended December 31, 2022 Fixed Traditional UL and Annuities Life Other Balance as of beginning-of-year $ 20 $ 59 $ 499 Deferrals - - 2 Amortization ( 3 ) ( 9 ) ( 47 ) Balance as of end-of-year $ 17 $ 50 $ 454 |
DSI | For the Nine Months Ended September 30, 2023 Retirement Variable Fixed UL and Plan Annuities Annuities Other Services Balance as of beginning-of-year $ 167 $ 23 $ 30 $ 17 Deferrals 3 - 1 5 Amortization ( 11 ) ( 3 ) ( 2 ) - Balance as of end-of-period $ 159 $ 20 $ 29 $ 22 For the Year Ended December 31, 2022 Retirement Variable Fixed UL and Plan Annuities Annuities Other Services Balance as of beginning-of-year $ 181 $ 27 $ 31 $ 14 Deferrals 2 - 1 4 Amortization ( 16 ) ( 4 ) ( 2 ) ( 1 ) Balance as of end-of-year $ 167 $ 23 $ 30 $ 17 |
DFEL | For the Nine Months Ended For the Year Ended September 30, 2023 December 31, 2022 Variable UL and Variable UL and Annuities Other Annuities Other Balance as of beginning-of-year $ 310 $ 4,735 $ 318 $ 3,902 Deferrals 15 799 22 1,060 Amortization ( 22 ) ( 191 ) ( 30 ) ( 227 ) Balance as of end-of-period $ 303 $ 5,343 $ 310 $ 4,735 |
Goodwill (Tables)
Goodwill (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill [Abstract] | |
Changes In Carrying Amount Of Goodwill, By Reportable Segment | For the Nine Months Ended September 30, 2023 Gross Accumulated Net Goodwill Impairment Goodwill Net as of as of as of Goodwill Beginning- Beginning- Beginning- as of End- of-Year of-Year of-Year Impairment of-Period Annuities $ 1,040 $ ( 600 ) $ 440 $ - $ 440 Life Insurance 2,186 ( 2,186 ) - - - Group Protection 684 - 684 - 684 Retirement Plan Services 20 - 20 - 20 Total goodwill $ 3,930 $ ( 2,786 ) $ 1,144 $ - $ 1,144 For the Nine Months Ended September 30, 2022 Gross Accumulated Net Goodwill Impairment Goodwill Net as of as of as of Goodwill Beginning- Beginning- Beginning- as of End- of-Year of-Year of-Year Impairment of-Period Annuities $ 1,040 $ ( 600 ) $ 440 $ - $ 440 Life Insurance 2,186 ( 1,552 ) 634 ( 634 ) - Group Protection 684 - 684 - 684 Retirement Plan Services 20 - 20 - 20 Total goodwill $ 3,930 $ ( 2,152 ) $ 1,778 $ ( 634 ) $ 1,144 |
MBRs (Tables)
MBRs (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
MRBs [Abstract] | |
Reconciles of MRBs Assets and Liabilities | As of September 30, 2023 As of December 31, 2022 Net Net (Assets) (Assets) Assets Liabilities Liabilities Assets Liabilities Liabilities Variable Annuities $ 3,966 $ 1,293 $ ( 2,673 ) $ 2,666 $ 2,004 $ ( 662 ) Fixed Annuities 105 88 ( 17 ) 117 72 ( 45 ) Retirement Plan Services 37 4 ( 33 ) 24 2 ( 22 ) Total MRBs $ 4,108 $ 1,385 $ ( 2,723 ) $ 2,807 $ 2,078 $ ( 729 ) |
Summary of Balances of Changes in Net MRB (Assets) Liabilities | As of or For the Nine Months Ended As of or For the Year Ended September 30, 2023 December 31, 2022 Retirement Retirement Variable Fixed Plan Variable Fixed Plan Annuities Annuities Services Annuities Annuities Services Balance as of beginning-of-year $ ( 662 ) $ ( 45 ) $ ( 22 ) $ 2,398 $ 114 $ ( 1 ) Less: Effect of cumulative changes in non-performance risk ( 2,173 ) ( 40 ) ( 2 ) ( 2,425 ) ( 44 ) ( 13 ) Balance as of beginning-of-year, before the effect of changes in non-performance risk 1,511 ( 5 ) ( 20 ) 4,823 158 12 Issuances 3 - - 12 - ( 3 ) Attributed fees collected 1,127 23 4 1,571 32 6 Benefit payments ( 49 ) - - ( 63 ) - - Effect of changes in interest rates ( 2,347 ) ( 66 ) ( 7 ) ( 9,346 ) ( 232 ) ( 55 ) Effect of changes in equity markets ( 1,430 ) ( 5 ) ( 6 ) 4,293 12 18 Effect of changes in equity index volatility ( 358 ) 6 ( 3 ) ( 225 ) 14 ( 1 ) In-force updates and other changes in MRBs (1) 182 4 - 661 10 3 Effect of assumption review: Effect of changes in future expected policyholder behavior ( 33 ) 70 - ( 158 ) 1 - Effect of changes in other future expected assumptions (2) ( 66 ) 15 ( 2 ) ( 57 ) - - Balance as of end-of-period, before the effect of changes in non-performance risk ( 1,460 ) 42 ( 34 ) 1,511 ( 5 ) ( 20 ) Effect of cumulative changes in non-performance risk ( 1,213 ) ( 59 ) 1 ( 2,173 ) ( 40 ) ( 2 ) Balance as of end-of-period ( 2,673 ) ( 17 ) ( 33 ) ( 662 ) ( 45 ) ( 22 ) Less: ceded MRB assets (liabilities) ( 1,457 ) - ( 6 ) 294 - - Balance as of end-of-period, net of reinsurance $ ( 1,216 ) $ ( 17 ) $ ( 27 ) $ ( 956 ) $ ( 45 ) $ ( 22 ) Weighted-average age of policyholders (years) 72 68 63 71 68 63 Net amount at risk (3) 6,235 188 9 7,974 171 15 (1) Consists primarily of changes in MRB assets and liabilities related to differences between separate account fund performance and modeled indices and other changes such as actual to expected policyholder behavior. (2) Consists primarily of the update of fund mapping, volatility and other capital market assumptions. (3) Net amount at risk (“NAR”) is the current guaranteed minimum benefit in excess of the current account balance as of the balance sheet date. For GLBs, the guaranteed minimum benefit is calculated based on the present value of GLB payments. Our variable annuity products may offer more than one type of guaranteed benefit rider to a policyholder. In instances where more than one guaranteed benefit feature exists in a contract, the guaranteed benefit rider that provides the highest NAR is used in the calculation. |
Separate Accounts (Tables)
Separate Accounts (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Separate Accounts [Abstract] | |
Schedule of Fair Value of Separate Account Assets | As of As of September 30, December 31, 2023 2022 Mutual funds and collective investment trusts $ 145,178 $ 142,892 Exchange-traded funds 269 258 Fixed maturity AFS securities 161 169 Cash and invested cash 70 98 Other investments 132 119 Total separate account assets $ 145,810 $ 143,536 |
Schedule of Reconciliation of Separate Account Liabilities | As of As of September 30, December 31, 2023 2022 Variable Annuities $ 105,192 $ 105,573 UL and Other 22,642 20,920 Retirement Plan Services 17,928 16,996 Other Operations (1) 48 47 Total separate account liabilities $ 145,810 $ 143,536 (1) Represents separate account liabilities reported in Other Operations primarily attributable to the indemnity reinsurance agreements with Protective ($ 42 million as of September 30, 2023, and December 31, 2022) that are excluded from the following tables. |
Summary of Balances and changes in Separate Account Liabilities | As of or For the Nine Months Ended As of or For the Year Ended September 30, 2023 December 31, 2022 Retirement Retirement Variable UL and Plan Variable UL and Plan Annuities Other Services Annuities Other Services Balance as of beginning-of-year $ 105,573 $ 20,920 $ 16,996 $ 136,665 $ 24,785 $ 21,068 Gross deposits 2,137 1,178 1,576 3,371 1,900 2,378 Withdrawals ( 7,402 ) ( 227 ) ( 1,795 ) ( 9,238 ) ( 454 ) ( 2,378 ) Policyholder assessments ( 1,883 ) ( 714 ) ( 121 ) ( 2,603 ) ( 938 ) ( 164 ) Change in market performance 6,320 1,573 1,316 ( 23,194 ) ( 4,371 ) ( 3,710 ) Net transfers from (to) general account 447 ( 88 ) ( 44 ) 572 ( 2 ) ( 198 ) Balance as of end-of-period $ 105,192 $ 22,642 $ 17,928 $ 105,573 $ 20,920 $ 16,996 Cash surrender value $ 103,729 $ 20,324 $ 17,914 $ 103,987 $ 18,666 $ 16,982 |
Policyholder Account Balances (
Policyholder Account Balances (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Policyholder Account Balances [Abstract] | |
Schedule of Policyholder Account Balances | As of As of September 30, December 31, 2023 2022 Variable Annuities $ 26,772 $ 22,184 Fixed Annuities 23,655 23,338 UL and Other 36,810 37,258 Retirement Plan Services 24,099 25,138 Other (1) 5,441 6,054 Total policyholder account balances $ 116,777 $ 113,972 (1) Represents policyholder account balances reported primarily in Other Operations attributable to the indemnity reinsurance agreements with Protective ($ 5.1 billion and $ 5.7 billion as of September 30, 2023, and December 31, 2022, respectively) that are excluded from the following tables. |
Summary of Balances and Changes in Policyholder Account Balances | As of or For the Nine Months Ended September 30, 2023 Retirement Variable Fixed UL and Plan Annuities Annuities Other Services Balance as of beginning-of-year $ 22,184 $ 23,338 $ 37,258 $ 25,138 Gross deposits 3,626 2,698 2,737 2,026 Withdrawals ( 508 ) ( 2,861 ) ( 1,077 ) ( 3,262 ) Policyholder assessments ( 1 ) ( 41 ) ( 3,337 ) ( 10 ) Net transfers from (to) separate account ( 311 ) - 90 ( 297 ) Interest credited 391 469 1,101 504 Change in fair value of embedded derivative instruments 1,391 52 38 - Balance as of end-of-period $ 26,772 $ 23,655 $ 36,810 $ 24,099 Weighted-average crediting rate 2.1 % 2.6 % 4.0 % 2.7 % Net amount at risk (1)(2) $ 6,235 $ 188 $ 301,876 $ 9 Cash surrender value 25,629 22,753 32,685 24,094 As of or For the Year Ended December 31, 2022 Retirement Variable Fixed UL and Plan Annuities Annuities Other Services Balance as of beginning-of-year $ 19,148 $ 22,522 $ 37,719 $ 23,579 Gross deposits 5,178 3,284 3,905 4,012 Withdrawals ( 417 ) ( 2,511 ) ( 1,215 ) ( 3,579 ) Policyholder assessments ( 2 ) ( 51 ) ( 4,446 ) ( 13 ) Net transfers from (to) separate account ( 492 ) - 2 510 Interest credited 287 532 1,476 629 Change in fair value of embedded derivative instruments ( 1,518 ) ( 438 ) ( 183 ) - Balance as of end-of-year $ 22,184 $ 23,338 $ 37,258 $ 25,138 Weighted-average crediting rate 1.4 % 2.4 % 3.9 % 2.6 % Net amount at risk (1)(2) $ 7,974 $ 171 $ 302,481 $ 15 Cash surrender value 21,147 22,502 33,130 25,133 (1) NAR is the current guaranteed minimum benefit in excess of the current account balance as of the balance sheet date. For GLBs, the guaranteed minimum benefit is calculated based on the present value of GLB payments. Our variable annuity products may offer more than one type of guaranteed benefit rider to a policyholder. In instances where more than one guaranteed benefit rider exists in a contract, the guaranteed benefit rider that provides the highest NAR is used in the calculation. (2) Calculation is based on total account balances and includes both policyholder account balances and separate account balances. |
Summary of Policyholder Account Balances by Range | As of September 30, 2023 Greater 1-50 51-100 101-150 Than 150 At Basis Basis Basis Basis Range of Guaranteed Guaranteed Points Points Points Points Minimum Crediting Rate Minimum Above Above Above Above Total Variable Annuities Up to 1.00 % $ - $ - $ - $ - $ - $ - 1.01 % - 2.00 % 5 - - - 8 13 2.01 % - 3.00 % 602 - - - - 602 3.01 % - 4.00 % 1,429 - - - - 1,429 4.01 % and above 10 - - - - 10 Other (1) - - - - - 24,718 Total $ 2,046 $ - $ - $ - $ 8 $ 26,772 Fixed Annuities Up to 1.00 % $ 744 $ 427 $ 515 $ 518 $ 2,427 $ 4,631 1.01 % - 2.00 % 481 106 212 456 1,264 2,519 2.01 % - 3.00 % 1,881 32 6 - 3 1,922 3.01 % - 4.00 % 929 - - - - 929 4.01 % and above 182 - - - - 182 Other (1) - - - - - 13,472 Total $ 4,217 $ 565 $ 733 $ 974 $ 3,694 $ 23,655 UL and Other Up to 1.00 % $ 284 $ - $ 192 $ 34 $ 362 $ 872 1.01 % - 2.00 % 553 - - - 3,181 3,734 2.01 % - 3.00 % 6,998 11 147 - - 7,156 3.01 % - 4.00 % 15,385 - 1 - - 15,386 4.01 % and above 3,783 - - - - 3,783 Other (1) - - - - - 5,879 Total $ 27,003 $ 11 $ 340 $ 34 $ 3,543 $ 36,810 Retirement Plan Services Up to 1.00 % $ 407 $ 596 $ 762 $ 4,882 $ 2,837 $ 9,484 1.01 % - 2.00 % 610 2,405 1,474 668 - 5,157 2.01 % - 3.00 % 2,594 - - - - 2,594 3.01 % - 4.00 % 5,223 - - - - 5,223 4.01 % and above 1,641 - - - - 1,641 Total $ 10,475 $ 3,001 $ 2,236 $ 5,550 $ 2,837 $ 24,099 As of December 31, 2022 Greater 1-50 51-100 101-150 Than 150 At Basis Basis Basis Basis Range of Guaranteed Guaranteed Points Points Points Points Minimum Crediting Rate Minimum Above Above Above Above Total Variable Annuities Up to 1.00 % $ - $ - $ - $ - $ - $ - 1.01 % - 2.00 % 4 - - 8 - 12 2.01 % - 3.00 % 658 - - - - 658 3.01 % - 4.00 % 1,545 - - - - 1,545 4.01 % and above 11 - - - - 11 Other (1) - - - - - 19,958 Total $ 2,218 $ - $ - $ 8 $ - $ 22,184 Fixed Annuities Up to 1.00 % $ 891 $ 497 $ 589 $ 563 $ 1,329 $ 3,869 1.01 % - 2.00 % 544 144 179 492 1,057 2,416 2.01 % - 3.00 % 1,973 5 1 - - 1,979 3.01 % - 4.00 % 1,326 - - - - 1,326 4.01 % and above 193 - - - - 193 Other (1) - - - - - 13,555 Total $ 4,927 $ 646 $ 769 $ 1,055 $ 2,386 $ 23,338 UL and Other Up to 1.00 % $ 318 $ - $ 194 $ 29 $ 292 $ 833 1.01 % - 2.00 % 558 - - - 3,282 3,840 2.01 % - 3.00 % 7,218 156 - - - 7,374 3.01 % - 4.00 % 15,858 - 1 - - 15,859 4.01 % and above 3,824 - - - - 3,824 Other (1) - - - - - 5,528 Total $ 27,776 $ 156 $ 195 $ 29 $ 3,574 $ 37,258 Retirement Plan Services Up to 1.00 % $ 961 $ 1,001 $ 4,304 $ 1,703 $ 1,908 $ 9,877 1.01 % - 2.00 % 1,774 2,197 982 462 - 5,415 2.01 % - 3.00 % 2,711 1 - - - 2,712 3.01 % - 4.00 % 5,622 1 - - - 5,623 4.01 % and above 1,511 - - - - 1,511 Total $ 12,579 $ 3,200 $ 5,286 $ 2,165 $ 1,908 $ 25,138 (1) Consists of indexed account balances that include the fair value of embedded derivative instruments, payout annuity account balances, short-term dollar cost averaging annuities business and policy loans. |
Future Contract Benefits (Table
Future Contract Benefits (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Summary of Reconciliation of Future Contract Benefits | As of As of September 30, December 31, 2023 2022 Payout Annuities (1) $ 1,943 $ 2,003 Traditional Life (1) 3,252 3,190 Group Protection (2) 5,373 5,462 UL and Other (3) 14,899 14,777 Other Operations (4) 9,157 9,651 Other (5) 3,236 3,219 Total future contract benefits $ 37,860 $ 38,302 (1) See “LFPB” below for further information. (2) See “Liability for Future Claims” below for further information. (3) See “Additional Liabilities for Other Insurance Benefits” below for further information. (4) Represents future contract benefits reported in Other Operations primarily attributable to the indemnity reinsurance agreements with Protective ($ 5.3 billion and $ 5.4 billion as of September 30, 2023, and December 31, 2022, respectively) and Swiss Re ($ 2.0 billion and $ 2.2 billion as of September 30, 2023, and December 31, 2022, respectively) that are excluded from the following tables. (5) Represents other miscellaneous reserves outside the scope of ASU 2018-12 that are excluded from the following tables . |
Summary of Changes in Present values of Expected Net Premiums and LFPB | As of or For the As of or For the Nine Months Ended Year Ended September 30, 2023 December 31, 2022 Payout Traditional Payout Traditional Annuities Life Annuities Life Present Value of Expected Net Premiums Balance as of beginning-of-year $ - $ 5,896 $ - $ 6,610 Less: Effect of cumulative changes in discount rate assumptions - ( 584 ) - 843 Beginning balance at original discount rate - 6,480 - 5,767 Effect of changes in cash flow assumptions - ( 5 ) - ( 382 ) Effect of actual variances from expected experience - ( 262 ) - ( 21 ) Adjusted balance as of beginning-of-year - 6,213 - 5,364 Issuances - 460 - 1,655 Interest accrual - 176 - 209 Net premiums collected - ( 588 ) - ( 742 ) Flooring impact of LFPB - 3 - ( 6 ) Ending balance at original discount rate - 6,264 - 6,480 Effect of cumulative changes in discount rate assumptions - ( 527 ) - ( 584 ) Balance as of end-of-period $ - $ 5,737 $ - $ 5,896 Present Value of Expected LFPB Balance as of beginning-of-year $ 2,003 $ 9,086 $ 2,511 $ 10,353 Less: Effect of cumulative changes in discount rate assumptions ( 263 ) ( 793 ) 266 1,460 Beginning balance at original discount rate (1) 2,266 9,879 2,245 8,893 Effect of changes in cash flow assumptions 17 ( 21 ) - ( 321 ) Effect of actual variances from expected experience ( 1 ) ( 289 ) 3 ( 5 ) Adjusted balance as of beginning-of-year 2,282 9,569 2,248 8,567 Issuances 83 460 122 1,655 Interest accrual 64 270 84 326 Benefit payments ( 142 ) ( 479 ) ( 188 ) ( 669 ) Ending balance at original discount rate (1) 2,287 9,820 2,266 9,879 Effect of cumulative changes in discount rate assumptions ( 344 ) ( 831 ) ( 263 ) ( 793 ) Balance as of end-of-period $ 1,943 $ 8,989 $ 2,003 $ 9,086 Net balance as of end-of-period $ 1,943 $ 3,252 $ 2,003 $ 3,190 Less: reinsurance recoverables 11 232 10 270 Net balance as of end-of-period, net of reinsurance $ 1,932 $ 3,020 $ 1,993 $ 2,920 Weighted-average duration of future policyholder benefit liability (years) 9 10 9 11 (1) Includes DPL within Payout Annuities of $ 38 million, $ 38 million and $ 22 million as of September 30, 2023, December 31, 2022 and December 31, 2021, respectively. |
Summary of Discounted and Undiscounted Expected Future Gross premiums and Expected Future Benefit Payments | As of September 30, 2023 As of December 31, 2022 Undiscounted Discounted Undiscounted Discounted Payout Annuities Expected future gross premiums $ - $ - $ - $ - Expected future benefit payments 3,552 1,943 3,471 2,003 Traditional Life Expected future gross premiums 13,410 8,802 13,166 8,887 Expected future benefit payments 13,372 8,989 13,026 9,086 |
Summary the Gross Premiums and Interest Accretion | For the Three For the Nine Months Ended Months Ended September 30, September 30, 2023 2022 2023 2022 Payout Annuities Gross premiums $ 16 $ 49 $ 88 $ 92 Interest accretion 22 21 64 63 Traditional Life Gross premiums 293 285 885 841 Interest accretion 31 30 94 87 |
Summary of Weighted-Average Interest Rates | For the Nine Months For the Year Ended Ended September 30, December 31, 2023 2022 Payout Annuities Interest accretion rate 3.9 % 3.9 % Current discount rate 5.8 % 5.3 % Traditional Life Interest accretion rate 5.0 % 5.0 % Current discount rate 5.6 % 5.1 % |
UL and Other [Member] | |
Summary of Changes in Present values of Expected Net Premiums and LFPB | UL and Other As of or For the Nine As of or For Months the Year Ended Ended September 30, December 31, 2023 2022 Balance as of beginning-of-year $ 14,777 $ 12,513 Less: Effect of cumulative changes in shadow balance in AOCI ( 905 ) 1,113 Balance as of beginning-of-year, excluding shadow balance in AOCI 15,682 11,400 Effect of changes in cash flow assumptions 173 3,108 Effect of actual variances from expected experience ( 28 ) 195 Adjusted beginning-of-year balance 15,827 14,703 Issuances - 7 Interest accrual 573 626 Net assessments collected 334 974 Benefit payments ( 473 ) ( 628 ) Balance as of end-of-period, excluding shadow balance in AOCI 16,261 15,682 Effect of cumulative changes in shadow balance in AOCI ( 136 ) ( 905 ) Balance as of end-of-period 14,899 14,777 Less: reinsurance recoverables 1,897 1,975 Balance as of end-of-period, net of reinsurance $ 13,002 $ 12,802 Weighted-average duration of additional liabilities for other insurance benefits (years) 17 17 |
Summary the Gross Premiums and Interest Accretion | For the Three For the Nine Months Ended Months Ended September 30, September 30, 2023 2022 2023 2022 UL and Other Gross assessments $ 337 $ 690 $ 1,794 $ 2,097 Interest accretion 197 175 573 446 |
Summary of Weighted-Average Interest Rates | For the Nine Months For the Year Ended Ended September 30, December 31, 2023 2022 UL and Other Interest accretion rate 5.1 % 5.0 % |
Group Protection Segment [Member] | |
Summary of Changes in Present values of Expected Net Premiums and LFPB | Group Protection As of or For the Nine As of or For Months the Year Ended Ended September 30, December 31, 2023 2022 Balance as of beginning-of-year $ 5,462 $ 5,936 Less: Effect of cumulative changes in discount rate assumptions ( 597 ) 262 Beginning balance at original discount rate 6,059 5,674 Effect of changes in cash flow assumptions ( 27 ) 15 Effect of actual variances from expected experience ( 233 ) ( 117 ) Adjusted beginning-of-year balance 5,799 5,572 New incidence 1,267 1,777 Interest 122 141 Benefit payments ( 1,095 ) ( 1,431 ) Ending balance at original discount rate 6,093 6,059 Effect of cumulative changes in discount rate assumptions ( 720 ) ( 597 ) Balance as of end-of-period 5,373 5,462 Less: reinsurance recoverables 117 127 Balance as of end-of-period, net of reinsurance $ 5,256 $ 5,335 Weighted-average duration of liability for future claims (years) 5 4 |
Summary of Discounted and Undiscounted Expected Future Gross premiums and Expected Future Benefit Payments | As of September 30, 2023 As of December 31, 2022 Undiscounted Discounted Undiscounted Discounted Group Protection Expected future benefit payments $ 7,148 $ 6,093 $ 7,063 $ 6,059 |
Summary the Gross Premiums and Interest Accretion | For the Three For the Nine Months Ended Months Ended September 30, September 30, 2023 2022 2023 2022 Group Protection Gross premiums $ 874 $ 852 $ 2,645 $ 2,523 Interest accretion 39 33 122 111 |
Summary of Weighted-Average Interest Rates | For the Nine Months For the Year Ended Ended September 30, December 31, 2023 2022 Group Protection Interest accretion rate 3.0 % 2.8 % Current discount rate 5.7 % 5.1 % |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value of Financial Instruments [Abstract] | |
Carrying And Estimated Fair Values Of Financial Instruments | As of September 30, 2023 As of December 31, 2022 Carrying Fair Carrying Fair Value Value Value Value Assets Fixed maturity AFS securities $ 100,387 $ 100,387 $ 99,465 $ 99,465 Trading securities 2,749 2,749 3,446 3,446 Equity securities 383 383 427 427 Mortgage loans on real estate 18,661 16,553 18,211 16,477 Derivative investments 5,454 5,454 3,519 3,519 Other investments 4,428 4,428 3,577 3,577 Cash and invested cash 2,285 2,285 2,499 2,499 MRB assets 4,108 4,108 2,807 2,807 Other assets: Ceded MRBs 273 273 540 540 Reinsurance-related embedded derivatives 933 933 681 681 Indexed annuity ceded embedded derivatives 586 586 525 525 LPR ceded derivative 184 184 212 212 Separate account assets 145,810 145,810 143,536 143,536 Liabilities Policyholder account balances: Account balances of certain investment contracts ( 43,068 ) ( 30,869 ) ( 43,550 ) ( 34,251 ) Indexed annuity and IUL contracts embedded derivatives ( 7,174 ) ( 7,174 ) ( 4,783 ) ( 4,783 ) MRB liabilities ( 1,385 ) ( 1,385 ) ( 2,078 ) ( 2,078 ) Short-term debt ( 497 ) ( 497 ) ( 562 ) ( 562 ) Long-term debt ( 2,244 ) ( 2,114 ) ( 2,269 ) ( 2,166 ) Other liabilities: Ceded MRBs ( 1,736 ) ( 1,736 ) ( 246 ) ( 246 ) Derivative liabilities ( 628 ) ( 628 ) ( 254 ) ( 254 ) Remaining guaranteed interest and similar contracts ( 433 ) ( 433 ) ( 574 ) ( 574 ) |
Schedule Of Mortgage Loans With Election Of Fair Value Option | As of As of September 30, December 31, 2023 2022 Fair value $ 315 $ 487 Aggregate contractual principal 341 514 |
Fair Value Of Assets And Liabilities On A Recurring Basis | As of September 30, 2023 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 $ - $ 72,294 $ 6,467 $ 78,761 U.S. government bonds 332 40 - 372 State and municipal bonds - 4,638 33 4,671 Foreign government bonds - 270 - 270 RMBS - 1,857 12 1,869 CMBS - 1,701 - 1,701 ABS - 11,051 1,337 12,388 Hybrid and redeemable preferred securities 45 262 48 355 Trading securities - 2,399 350 2,749 Equity securities 1 245 137 383 Mortgage loans on real estate - - 315 315 Derivative investments (1) - 8,918 877 9,795 Other investments – short-term investments - 170 - 170 Cash and invested cash - 2,285 - 2,285 MRB assets - - 4,108 4,108 Other assets: Ceded MRBs - - 273 273 Reinsurance-related embedded derivatives - 933 - 933 Indexed annuity ceded embedded derivatives - - 586 586 LPR ceded derivative - - 184 184 Separate account assets 429 145,381 - 145,810 Total assets $ 807 $ 252,444 $ 14,727 $ 267,978 Liabilities Policyholder account balances – indexed annuity and IUL contracts embedded derivatives $ - $ - $ ( 7,174 ) $ ( 7,174 ) MRB liabilities - - ( 1,385 ) ( 1,385 ) Other liabilities: Ceded MRBs - - ( 1,736 ) ( 1,736 ) Derivative liabilities (1) - ( 4,105 ) ( 864 ) ( 4,969 ) Total liabilities $ - $ ( 4,105 ) $ ( 11,159 ) $ ( 15,264 ) As of December 31, 2022 Quoted Prices in Active Markets for Significant Significant Identical Observable Unobservable Total Assets Inputs Inputs Fair (Level 1) (Level 2) (Level 3) Value Assets Investments: Fixed maturity AFS securities: Corporate bonds $ - $ 73,980 $ 5,186 $ 79,166 U.S. government bonds 332 19 - 351 State and municipal bonds - 4,850 35 4,885 Foreign government bonds - 311 - 311 RMBS - 1,835 1 1,836 CMBS - 1,667 - 1,667 ABS - 9,782 1,117 10,899 Hybrid and redeemable preferred securities 40 261 49 350 Trading securities - 2,865 581 3,446 Equity securities - 274 153 427 Mortgage loans on real estate - - 487 487 Derivative investments (1) - 5,929 605 6,534 Other investments – short-term investments - 30 - 30 Cash and invested cash - 2,499 - 2,499 MRB assets - - 2,807 2,807 Other assets: Ceded MRBs - - 540 540 Reinsurance-related embedded derivatives - 681 - 681 Indexed annuity ceded embedded derivatives - - 525 525 LPR ceded derivative - - 212 212 Separate account assets 412 143,124 - 143,536 Total assets $ 784 $ 248,107 $ 12,298 $ 261,189 Liabilities Policyholder account balances – indexed annuity and IUL contracts embedded derivatives $ - $ - $ ( 4,783 ) $ ( 4,783 ) MRB liabilities - - ( 2,078 ) ( 2,078 ) Other liabilities: Ceded MRBs - - ( 246 ) ( 246 ) Derivative liabilities (1) - ( 2,666 ) ( 603 ) ( 3,269 ) Total liabilities $ - $ ( 2,666 ) $ ( 7,710 ) $ ( 10,376 ) (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 | The summary schedule excludes changes to MRB assets and MRB liabilities as these balances are rolled forward in Note 10. For the Three Months Ended September 30, 2023 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 Value Investments: (2) Fixed maturity AFS securities: Corporate bonds $ 6,177 $ ( 7 ) $ ( 13 ) $ 353 $ ( 43 ) $ 6,467 State and municipal bonds 36 ( 2 ) ( 1 ) - - 33 RMBS 6 - ( 1 ) - 7 12 ABS 1,208 - ( 5 ) 247 ( 113 ) 1,337 Hybrid and redeemable preferred securities 60 - 1 - ( 13 ) 48 Trading securities 351 ( 3 ) - ( 4 ) 6 350 Equity securities 125 12 - - - 137 Mortgage loans on real estate 404 2 ( 3 ) ( 88 ) - 315 Derivative investments 31 ( 26 ) - 8 - 13 Other assets: Ceded MRBs (3) 401 ( 128 ) - - - 273 Indexed annuity ceded embedded derivatives (4) 603 ( 49 ) - 32 - 586 LPR ceded derivative (5) 202 ( 18 ) - - - 184 Policyholder account balances – indexed annuity and IUL contracts embedded derivatives (4) ( 7,600 ) 621 - ( 195 ) - ( 7,174 ) Other liabilities – ceded MRBs (3) ( 1,440 ) ( 296 ) - - - ( 1,736 ) Total, net $ 564 $ 106 $ ( 22 ) $ 353 $ ( 156 ) $ 845 For the Three Months Ended September 30, 2022 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 Value Investments: (2) Fixed maturity AFS securities: Corporate bonds $ 8,531 $ 1 $ ( 512 ) $ ( 34 ) $ ( 16 ) $ 7,970 Foreign government bonds 37 - ( 3 ) - - 34 RMBS 1 - - 9 - 10 ABS 1,153 - ( 38 ) 123 ( 147 ) 1,091 Hybrid and redeemable preferred securities 99 ( 1 ) ( 34 ) ( 6 ) - 58 Trading securities 620 ( 24 ) - 3 3 602 Equity securities 145 24 - ( 1 ) - 168 Mortgage loans on real estate 528 ( 1 ) ( 4 ) ( 28 ) - 495 Derivative investments 3 3 - - ( 1 ) 5 Other assets: Ceded MRBs (3) 2,337 ( 722 ) - - - 1,615 Indexed annuity ceded embedded derivatives (4) 440 ( 47 ) - 63 - 456 LPR ceded derivative (5) 215 ( 24 ) - - - 191 Policyholder account balances – indexed annuity and IUL contracts embedded derivatives (4) ( 3,366 ) 394 - ( 222 ) - ( 3,194 ) Other liabilities – ceded MRBs (3) ( 115 ) ( 54 ) - - - ( 169 ) Total, net $ 10,628 $ ( 451 ) $ ( 591 ) $ ( 93 ) $ ( 161 ) $ 9,332 For the Nine Months Ended September 30, 2023 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 Value Investments: (2) Fixed maturity AFS securities: Corporate bonds $ 5,186 $ ( 19 ) $ 2 $ 1,302 $ ( 4 ) $ 6,467 State and municipal bonds 35 ( 4 ) 3 ( 1 ) - 33 RMBS 1 - ( 1 ) 5 7 12 CMBS - - - ( 4 ) 4 - ABS 1,117 - ( 3 ) 567 ( 344 ) 1,337 Hybrid and redeemable preferred securities 49 - ( 2 ) ( 2 ) 3 48 Trading securities 581 ( 1 ) - ( 236 ) 6 350 Equity securities 153 ( 17 ) - 1 - 137 Mortgage loans on real estate 487 - 2 ( 174 ) - 315 Derivative investments 2 ( 28 ) - 8 31 13 Other assets: Ceded MRBs (3) 540 ( 267 ) - - - 273 Indexed annuity ceded embedded derivatives (4) 525 ( 37 ) - 98 - 586 LPR ceded derivative (5) 212 ( 28 ) - - - 184 Policyholder account balances – indexed annuity and IUL contracts embedded derivatives (4) ( 4,783 ) ( 1,669 ) - ( 722 ) - ( 7,174 ) Other liabilities – ceded MRBs (3) ( 246 ) ( 1,490 ) - - - ( 1,736 ) Total, net $ 3,859 $ ( 3,560 ) $ 1 $ 842 $ ( 297 ) $ 845 For the Nine Months Ended September 30, 2022 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 Value Investments: (2) Fixed maturity AFS securities: Corporate bonds $ 8,801 $ 2 $ ( 1,514 ) $ 583 $ 98 $ 7,970 Foreign government bonds 41 - ( 7 ) - - 34 RMBS 3 - - 21 ( 14 ) 10 CMBS - - - 17 ( 17 ) - ABS 870 - ( 98 ) 576 ( 257 ) 1,091 Hybrid and redeemable preferred securities 90 ( 1 ) ( 25 ) ( 6 ) - 58 Trading securities 828 ( 82 ) - ( 143 ) ( 1 ) 602 Equity securities 91 54 - 23 - 168 Mortgage loans on real estate 739 ( 16 ) ( 10 ) ( 218 ) - 495 Derivative investments 21 5 ( 6 ) - ( 15 ) 5 Other assets: Ceded MRBs (3) 4,114 ( 2,499 ) - - - 1,615 Indexed annuity ceded embedded derivatives (4) 528 ( 214 ) - 142 - 456 LPR ceded derivative (5) 318 ( 127 ) - - - 191 Policyholder account balances – indexed annuity and IUL contracts embedded derivatives (4) ( 6,131 ) 3,244 - ( 307 ) - ( 3,194 ) Other liabilities – ceded MRBs (3) ( 17 ) ( 152 ) - - - ( 169 ) Total, net $ 10,296 $ 214 $ ( 1,660 ) $ 688 $ ( 206 ) $ 9,332 (1) The changes in fair value of the interest rate swaps are offset by an adjustment to derivative investments (see Note 6). (2) Amortization and accretion of premiums and discounts are included in net investment income on the 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 the Consolidated Statements of Comprehensive Income (Loss). (3) Gains (losses) from the changes in fair value are included in market risk benefit gain (loss) on the Consolidated Statements of Comprehensive Income (Loss). (4) Gains (losses) from the changes in fair value are included in realized gain (loss) on the Consolidated Statements of Comprehensive Income (Loss). (5) Gains (losses) from the changes in fair value are included in benefits on the Consolidated Statements of Comprehensive Income (Loss). |
Schedule Of Investment Holdings Movements | For the Three Months Ended September 30, 2023 Issuances Sales Maturities Settlements Calls Total Investments: Fixed maturity AFS securities: Corporate bonds $ 435 $ ( 47 ) $ - $ ( 35 ) $ - $ 353 ABS 279 - - ( 32 ) - 247 Trading securities - - - ( 4 ) - ( 4 ) Mortgage loans on real estate 1 - - ( 89 ) - ( 88 ) Derivative investments 9 - ( 1 ) - - 8 Other assets – indexed annuity ceded embedded derivatives 28 - - 4 - 32 Policyholder account balances – indexed annuity and IUL contracts embedded derivatives ( 231 ) - - 36 - ( 195 ) Total, net $ 521 $ ( 47 ) $ ( 1 ) $ ( 120 ) $ - $ 353 For the Three Months Ended September 30, 2022 Issuances Sales Maturities Settlements Calls Total Investments: Fixed maturity AFS securities: Corporate bonds $ 207 $ ( 138 ) $ ( 50 ) $ ( 51 ) $ ( 2 ) $ ( 34 ) RMBS 9 - - - - 9 ABS 213 - - ( 90 ) - 123 Hybrid and redeemable preferred securities - - - - ( 6 ) ( 6 ) Trading securities 11 - - ( 8 ) - 3 Equity securities - ( 1 ) - - - ( 1 ) Mortgage loans on real estate 2 - - ( 30 ) - ( 28 ) Other assets – indexed annuity ceded embedded derivatives 37 - - 26 - 63 Policyholder account balances – indexed annuity and IUL contracts embedded derivatives ( 181 ) - - ( 41 ) - ( 222 ) Total, net $ 298 $ ( 139 ) $ ( 50 ) $ ( 194 ) $ ( 8 ) $ ( 93 ) For the Nine Months Ended September 30, 2023 Issuances Sales Maturities Settlements Calls Total Investments: Fixed maturity AFS securities: Corporate bonds $ 1,825 $ ( 164 ) $ ( 34 ) $ ( 314 ) $ ( 11 ) $ 1,302 State and municipal bonds - ( 1 ) - - - ( 1 ) RMBS 5 - - - - 5 CMBS - - - ( 4 ) - ( 4 ) ABS 736 ( 2 ) - ( 167 ) - 567 Hybrid and redeemable preferred securities - - - - ( 2 ) ( 2 ) Trading securities - ( 155 ) - ( 81 ) - ( 236 ) Equity securities 1 - - - - 1 Mortgage loans on real estate 5 - - ( 179 ) - ( 174 ) Derivative investments 9 - ( 1 ) - - 8 Other assets – indexed annuity ceded embedded derivatives 112 - - ( 14 ) - 98 Policyholder account balances – indexed annuity and IUL contracts embedded derivatives ( 846 ) - - 124 - ( 722 ) Total, net $ 1,847 $ ( 322 ) $ ( 35 ) $ ( 635 ) $ ( 13 ) $ 842 For the Nine Months Ended September 30, 2022 Issuances Sales Maturities Settlements Calls Total Investments: Fixed maturity AFS securities: Corporate bonds $ 1,105 $ ( 236 ) $ ( 74 ) $ ( 179 ) $ ( 33 ) $ 583 RMBS 21 - - - - 21 CMBS 17 - - - - 17 ABS 768 - - ( 185 ) ( 7 ) 576 Hybrid and redeemable preferred securities - - - - ( 6 ) ( 6 ) Trading securities 282 ( 220 ) - ( 205 ) - ( 143 ) Equity securities 32 ( 9 ) - - - 23 Mortgage loans on real estate 14 - - ( 232 ) - ( 218 ) Other assets – indexed annuity ceded embedded derivatives 76 - - 66 - 142 Policyholder account balances – indexed annuity and IUL contracts embedded derivatives ( 410 ) - - 103 - ( 307 ) Total, net $ 1,905 $ ( 465 ) $ ( 74 ) $ ( 632 ) $ ( 46 ) $ 688 |
Changes In Unrealized Gains (Losses) Within Level 3 Financial Instruments Carried At Fair Value And Still Held | For the Three For the Nine Months Ended Months Ended September 30, September 30, 2023 2022 2023 2022 Trading securities (1) $ ( 3 ) $ ( 23 ) $ ( 2 ) $ ( 81 ) Equity securities (1) 12 23 ( 17 ) 54 Mortgage loans on real estate (1) 2 ( 1 ) ( 1 ) ( 16 ) Derivative investments (1) ( 25 ) 2 ( 27 ) 5 MRBs (2) 1,001 56 1,133 ( 795 ) Other assets – LPR ceded derivative (3) ( 18 ) ( 24 ) ( 28 ) ( 127 ) Embedded derivatives – indexed annuity and IUL contracts (1) ( 4 ) ( 55 ) ( 223 ) 4 Total, net $ 965 $ ( 22 ) $ 835 $ ( 956 ) (1) Included in realized gain (loss) on the Consolidated Statements of Comprehensive Income (Loss). (2) Included in market risk benefit gain (loss) on the Consolidated Statements of Comprehensive Income (Loss). (3) Included in benefits on the Consolidated Statements of Comprehensive Income (Loss). |
Changes in Unrealized Gains (Losses) Included in OCI | For the Three For the Nine Months Ended Months Ended September 30, September 30, 2023 2022 2023 2022 Fixed maturity AFS securities: Corporate bonds $ ( 17 ) $ ( 517 ) $ ( 5 ) $ ( 1,521 ) State and municipal bonds - - 3 - Foreign government bonds - ( 2 ) - ( 7 ) RMBS ( 1 ) - ( 1 ) - ABS ( 5 ) ( 39 ) ( 4 ) ( 101 ) Hybrid and redeemable preferred securities - ( 35 ) ( 2 ) ( 25 ) Mortgage loans on real estate ( 3 ) ( 4 ) 1 ( 10 ) Total, net $ ( 26 ) $ ( 597 ) $ ( 8 ) $ ( 1,664 ) |
Components Of The Transfers In And Out Of Level 3 | For the Three For the Three Months Ended Months Ended September 30, 2023 September 30, 2022 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 $ 36 $ ( 79 ) $ ( 43 ) $ 37 $ ( 53 ) $ ( 16 ) RMBS 12 ( 5 ) 7 - - - ABS - ( 113 ) ( 113 ) 15 ( 162 ) ( 147 ) Hybrid and redeemable preferred securities - ( 13 ) ( 13 ) - - - Trading securities 6 - 6 4 ( 1 ) 3 Derivative investments - - - - ( 1 ) ( 1 ) Total, net $ 54 $ ( 210 ) $ ( 156 ) $ 56 $ ( 217 ) $ ( 161 ) 1 For the Nine For the Nine Months Ended Months Ended September 30, 2023 September 30, 2022 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 $ 194 $ ( 198 ) $ ( 4 ) $ 265 $ ( 167 ) $ 98 RMBS 12 ( 5 ) 7 - ( 14 ) ( 14 ) CMBS 4 - 4 - ( 17 ) ( 17 ) ABS 2 ( 346 ) ( 344 ) 16 ( 273 ) ( 257 ) Hybrid and redeemable preferred securities 16 ( 13 ) 3 - - - Trading securities 6 - 6 4 ( 5 ) ( 1 ) Derivative investments 31 - 31 - ( 15 ) ( 15 ) Total, net $ 265 $ ( 562 ) $ ( 297 ) $ 285 $ ( 491 ) $ ( 206 ) |
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 $ 186 Discounted cash flow Liquidity/duration adjustment (2) ( 0.1 ) % - 3.7 % 2.0 % State and municipal bonds 33 Discounted cash flow Liquidity/duration adjustment (2) 0.8 % - 1.9 % 1.8 % ABS 13 Discounted cash flow Liquidity/duration adjustment (2) 1.7 % - 1.7 % 1.7 % Hybrid and redeemable preferred securities 7 Discounted cash flow Liquidity/duration adjustment (2) 1.3 % - 1.5 % 1.4 % Equity securities 4 Discounted cash flow Liquidity/duration adjustment (2) 4.5 % - 4.5 % 4.5 % MRB assets 4,108 Other assets – ceded MRBs 273 Discounted cash flow Lapse (3) 1 % - 30 % (10) Utilization of GLB withdrawals (4) 85 % - 100 % 94 % Claims utilization factor (5) 60 % - 100 % (10) Premiums utilization factor (5) 80 % - 115 % (10) Non-performance risk (6) 0.74 % - 2.56 % 2.15 % Mortality (7) (9) (10) Volatility (8) 1 % - 29 % 13.65 % Other assets – indexed annuity ceded embedded derivatives 586 Discounted cash flow Lapse (3) 0 % - 9 % (10) Mortality (7) (9) (10) Other assets – LPR ceded derivative 184 Discounted cash flow Lapse (3) 0 % - 1.55 % (10) Non-performance risk (6) 0.74 % - 2.56 % 1.94 % Mortality (7) (9) (10) Liabilities Policyholder account balances – indexed annuity contracts embedded derivatives $ ( 7,163 ) Discounted cash flow Lapse (3) 0 % - 9 % (10) Mortality (7) (9) (10) MRB liabilities ( 1,385 ) Other liabilities – ceded MRBs ( 1,736 ) Discounted cash flow Lapse (3) 1 % - 30 % (10) Utilization of GLB withdrawals (4) 85 % - 100 % 94 % Claims utilization factor (5) 60 % - 100 % (10) Premiums utilization factor (5) 80 % - 115 % (10) Non-performance risk (6) 0.74 % - 2.56 % 2.15 % Mortality (7) (9) (10) Volatility (8) 1 % - 29 % 13.65 % The following summarizes the fair value (in millions), valuation techniques and significant unobservable inputs of the Level 3 fair value measurements as of December 31, 2022: 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 $ 201 Discounted cash flow Liquidity/duration adjustment (2) ( 0.2 ) % - 4.2 % 2.1 % State and municipal bonds 35 Discounted cash flow Liquidity/duration adjustment (2) 1.2 % - 2.4 % 2.3 % ABS 15 Discounted cash flow Liquidity/duration adjustment (2) 1.4 % - 1.4 % 1.4 % Hybrid and redeemable preferred securities 3 Discounted cash flow Liquidity/duration adjustment (2) 1.5 % - 1.5 % 1.5 % Equity securities 4 Discounted cash flow Liquidity/duration adjustment (2) 4.5 % - 4.5 % 4.5 % MRB assets 2,807 Other assets – ceded MRBs 540 Discounted cash flow Lapse (3) 1 % - 30 % (10) Utilization of GLB withdrawals (4) 85 % - 100 % 94 % Claims utilization factor (5) 60 % - 100 % (10) Premiums utilization factor (5) 80 % - 115 % (10) Non-performance risk (6) 0.35 % - 2.41 % 1.73 % Mortality (7) (9) (10) Volatility (8) 1 % - 28 % 14.47 % Other assets – indexed annuity ceded embedded derivatives 525 Discounted cash flow Lapse (3) 0 % - 9 % (10) Mortality (7) (9) (10) Other assets – LPR ceded derivative 212 Discounted cash flow Lapse (3) 0 % - 1.55 % (10) Non-performance risk (6) 0.35 % - 2.41 % 1.75 % Mortality (7) (9) (10) Liabilities Policyholder account balances – indexed annuity contracts embedded derivatives $ ( 4,845 ) Discounted cash flow Lapse (3) 0 % - 9 % (10) Mortality (7) (9) (10) MRB liabilities ( 2,078 ) Other liabilities – ceded MRBs ( 246 ) Discounted cash flow Lapse (3) 1 % - 30 % (10) Utilization of GLB withdrawals (4) 85 % - 100 % 94 % Claims utilization factor (5) 60 % - 100 % (10) Premiums utilization factor (5) 80 % - 115 % (10) Non-performance risk (6) 0.35 % - 2.41 % 1.73 % Mortality (7) (9) (10) Volatility (8) 1 % - 28 % 14.47 % (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 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 lapses during the surrender charge period. (4) The utilization of GLB withdrawals input represents the estimated percentage of policyholders that utilize the GLB withdrawal riders. (5) The utilization factors are applied to the present value of claims or premiums, as appropriate, in the MRB calculation to estimate the impact of inefficient GLB withdrawal behavior, including taking less than or more than the maximum GLB withdrawal. (6) The non-performance risk input represents the estimated additional credit spread that market participants would apply to the market observable discount rate when pricing a contract. The non-performance risk input was weighted by the absolute value of the sensitivity of the reserve to the non-performance risk assumption. The non-performance risk input for LPR ceded derivative was weighted using a simple average. (7) The mortality 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. 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 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, utilization factors or mortality. |
Shares and Stockholder's Equi_2
Shares and Stockholder's Equity (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Shares and Stockholder's Equity [Abstract] | |
Components And Changes In Accumulated OCI | For the Nine Months Ended September 30, 2023 2022 Unrealized Gain (Loss) on Fixed Maturity AFS Securities and Certain Other Investments Balance as of beginning-of-year $ ( 8,526 ) $ 9,153 Unrealized holding gains (losses) arising during the period ( 2,781 ) ( 25,928 ) Change in foreign currency exchange rate adjustment ( 21 ) ( 620 ) Change in future contract benefits and policyholder account balances 491 2,395 Income tax benefit (expense) 478 5,159 Less: Reclassification adjustment for gains (losses) included in net income (loss) ( 3,704 ) ( 9 ) Income tax benefit (expense) 778 2 Balance as of end-of-period $ ( 7,433 ) $ ( 9,834 ) Unrealized Gain (Loss) on Derivative Instruments Balance as of beginning-of-year $ 301 $ 258 Unrealized holding gains (losses) arising during the period 10 ( 214 ) Change in foreign currency exchange rate adjustment 30 623 Income tax benefit (expense) ( 9 ) ( 87 ) Less: Reclassification adjustment for gains (losses) included in net income (loss) 46 78 Income tax benefit (expense) ( 10 ) ( 16 ) Balance as of end-of-period $ 296 $ 518 Market Risk Benefit Non-Performance Risk Gain (Loss) Balance as of beginning-of-year $ 1,739 $ 1,951 Adjustment arising during the period ( 944 ) 285 Income tax benefit (expense) 202 ( 61 ) Balance as of end-of-period $ 997 $ 2,175 Policyholder Liability Discount Rate Remeasurement Gain (Loss) Balance as of beginning-of-year $ 790 $ ( 1,101 ) Adjustment arising during the period 326 2,470 Income tax benefit (expense) ( 69 ) ( 527 ) Balance as of end-of-period $ 1,047 $ 842 Funded Status of Employee Benefit Plans Balance as of beginning-of-year $ ( 17 ) $ ( 11 ) Balance as of end-of-period $ ( 17 ) $ ( 11 ) |
Schedule of Reclassifications Out Of AOCI | For the Nine Months Ended September 30, 2023 2022 Unrealized Gain (Loss) on Fixed Maturity AFS Securities and Certain Other Investments Reclassification $ ( 4,293 ) $ ( 9 ) Realized gain (loss) Associated change in future contract benefits 589 - Benefits Reclassification before income tax benefit (expense) ( 3,704 ) ( 9 ) Income (loss) before taxes Income tax benefit (expense) 778 2 Federal income tax expense (benefit) Reclassification, net of income tax $ ( 2,926 ) $ ( 7 ) Net income (loss) Unrealized Gain (Loss) on Derivative Instruments Interest rate contracts $ - $ 1 Net investment income Foreign currency contracts 42 48 Net investment income Foreign currency contracts 4 29 Realized gain (loss) Reclassifications before income tax benefit (expense) 46 78 Income (loss) before taxes Income tax benefit (expense) ( 10 ) ( 16 ) Federal income tax expense (benefit) Reclassifications, net of income tax $ 36 $ 62 Net income (loss) |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Segment Information [Abstract] | |
Reconciliation Of Revenue From Segments To Consolidated | For the Three For the Nine Months Ended Months Ended September 30, September 30, 2023 2022 2023 2022 Revenues Operating revenues: Annuities $ 1,095 $ 1,021 $ 3,236 $ 3,071 Life Insurance 1,627 1,536 4,920 4,756 Group Protection 1,387 1,332 4,174 3,958 Retirement Plan Services 321 312 972 936 Other Operations 32 28 106 93 Revenue adjustments from annuity and life insurance product features 268 192 154 725 Credit loss-related adjustments ( 25 ) ( 132 ) ( 50 ) ( 120 ) Investment gains (losses) (1) ( 1,091 ) 13 ( 4,228 ) 4 Changes in the fair value of reinsurance-related embedded derivatives, trading securities and certain mortgage loans 190 193 251 633 GLB rider fees ceded to LNBAR ( 227 ) ( 231 ) ( 694 ) ( 701 ) Total revenues $ 3,577 $ 4,265 $ 8,841 $ 13,355 |
Reconciliation Of Income (Loss) From Operations By Segment To Consolidated Net Income (Loss) | For the Three For the Nine Months Ended Months Ended September 30, September 30, 2023 2022 2023 2022 Net Income (Loss) Income (loss) from operations: Annuities $ 190 $ 225 $ 626 $ 727 Life Insurance ( 152 ) ( 1,945 ) ( 152 ) ( 1,946 ) Group Protection 67 12 246 15 Retirement Plan Services 39 43 120 149 Other Operations ( 76 ) ( 73 ) ( 203 ) ( 199 ) Net annuity product features, after-tax 951 184 1,212 ( 56 ) Net life insurance product features, after-tax (2) 196 20 308 16 Credit loss-related adjustments, after-tax ( 20 ) ( 104 ) ( 40 ) ( 95 ) Investment gains (losses), after-tax (1) ( 852 ) 10 ( 3,330 ) 3 Changes in the fair value of reinsurance-related embedded derivatives, trading securities and certain mortgage loans, after-tax 151 152 198 500 GLB rider fees ceded to LNBAR, after-tax ( 179 ) ( 182 ) ( 547 ) ( 554 ) Impairment of intangibles - ( 634 ) - ( 634 ) Transaction and integration costs related to mergers, acquisitions and divestitures, after-tax (3) - - ( 7 ) - Net income (loss) $ 315 $ ( 2,292 ) $ ( 1,569 ) $ ( 2,074 ) (1) Includes a $ 1.2 billion pre-tax ($ 909 million after-tax) and a $ 4.2 billion pre-tax ($ 3.3 billion after-tax) impairment of fixed maturity AFS securities in an unrealized loss position for the three and nine months ended September 30, 2023, respectively, resulting from the Company’s intent to sell these securities as part of the previously announced Fortitude Re reinsurance transaction. Within the investment portfolio anticipated to be sold in the transaction, there are additional fixed maturity AFS securities in an unrealized gain position of approximately $ 168 million after-tax as of September 30, 2023. Pursuant to the applicable accounting guidance, the Company impaired the securities in a loss position down to fair market value upon entry into the agreement in the second quarter and recognized additional impairment of certain of these securities during the third quarter due to higher interest rates. The Company will recognize a gain for any securities in an unrealized gain position at the time when the transaction closes. For more information, see Notes 4 and 8. (2) Includes $ 128 million and $ 458 million after-tax for the three and nine months ended September 30, 2023, respectively, related to the Fortitude Re reinsurance transaction. For more information, see Note 8. (3) Includes costs pertaining to the Fortitude Re reinsurance transaction. For more information, see Note 8. |
Reconciliation of Assets From Segments to Consolidated Balance Sheet | As of As of September 30, December 31, 2023 2022 Assets Annuities $ 173,558 $ 165,711 Life Insurance 97,466 97,412 Group Protection 9,450 9,828 Retirement Plan Services 41,821 42,117 Other Operations 21,260 20,595 Total assets $ 343,555 $ 335,663 |
Realized Gain (Loss) (Tables)
Realized Gain (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Realized Gain (Loss) [Abstract] | |
Schedule Of Realized Gain (Loss) | For the Three For the Nine Months Ended Months Ended September 30, September 30, 2023 2022 2023 2022 Fixed maturity AFS securities: Gross gains $ 1 $ 10 $ 34 $ 14 Gross losses ( 3 ) ( 14 ) ( 114 ) ( 23 ) Credit loss benefit (expense) (1) ( 1 ) ( 5 ) ( 16 ) ( 11 ) Intent to sell impairments (2) ( 1,150 ) - ( 4,213 ) - Realized gain (loss) on equity securities (3) 8 16 ( 20 ) ( 5 ) Credit loss benefit (expense) on mortgage loans on real estate ( 9 ) ( 9 ) ( 16 ) 5 Credit loss benefit (expense) on reinsurance-related assets (4) ( 15 ) ( 117 ) ( 19 ) ( 115 ) Realized gain (loss) on the mark-to-market on certain instruments (5)(6) 341 250 136 715 Indexed product derivative results (7) 4 ( 25 ) ( 199 ) 113 GLB rider fees ceded to LNBAR ( 227 ) ( 231 ) ( 693 ) ( 701 ) GLB and GDB hedge allowance 201 187 610 583 Other realized gain (loss) ( 17 ) ( 29 ) ( 3 ) ( 34 ) Total realized gain (loss) $ ( 867 ) $ 33 $ ( 4,513 ) $ 541 (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 impairments of certain fixed maturity AFS securities in an unrealized loss position, resulting from the Company’s intent to sell these securities as part of the Fortitude Re reinsurance transaction. Within the investment portfolio anticipated to be sold in the transaction, there are additional fixed maturity AFS securities in an unrealized gain position of approximately $ 212 million pre-tax as of September 30, 2023. Pursuant to the applicable accounting guidance, the Company impaired the securities in a loss position down to fair market value upon entry into the agreement in the second quarter and recognized additional impairment on certain of these securities during the third quarter due to higher interest rates. The Company will recognize a gain for any securities in an unrealized gain position at the time when the transaction closes. See Notes 4 and 8 for additional information. (3) Includes mark-to-market adjustments on equity securities still held of $ 9 million and $ 16 million for the three months ended September 30 , 2023 and 2022, respectively, and $( 22 ) million and less than $ 1 million for the nine months ended September 30 , 2023 and 2022, respectively. (4) Includes the release of reinsurance recoverables and the corresponding allowance for credit losses related to a third-party reinsurer, Scottish Re, where liquidation proceedings commenced during the third quarter of 2023. As of September 30, 2023, reinsurance coverage terminated and all business ceded to Scottish Re was therefore recaptured. (5) Represents changes in the fair values of derivatives we hold as part of VUL hedging, reinsurance-related embedded derivatives and trading securities. (6) Includes gains and losses from fair value changes on mortgage loans on real estate accounted for under the fair value option of $ 2 million and $( 1 ) million for the three months ended September 30, 2023 and 2022, respectively, and $ 1 million and $( 18 ) million for the nine months ended September 30, 2023 and 2022, respectively. (7) Represents 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, and the associated index options to hedge policyholder index allocations applicable to future reset periods for our indexed annuity products. |
Nature of Operations, Basis o_4
Nature of Operations, Basis of Presentation and Summary of Significant Accounting Policies (Narrative) (Details) - item | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Dec. 31, 2019 | Dec. 31, 2012 | Dec. 31, 2009 | |
Product Information [Line Items] | ||||
Maximum Net Premium Ratio at Individual Cohort Level | 100% | |||
VOCRA [Member] | ||||
Product Information [Line Items] | ||||
Useful life | 20 years | |||
VODA [Member] | ||||
Product Information [Line Items] | ||||
Useful life | 13 years | |||
Commercial [Member] | ||||
Product Information [Line Items] | ||||
Number of missed payments to qualify as delinquent | 2 | |||
Period In Which Loans No Longer Accrue Interest In Days | 90 days | |||
Number of missed payments to qualify loans as non-accrual | 3 | |||
Loan-to-value ratio indicating principal is greater than collateral | 100% | |||
Maximum [Member] | Commercial [Member] | ||||
Product Information [Line Items] | ||||
Debt-service coverage ratio indicating property income not covering debt payments | 1 | |||
Reinsurance Transactions, LNBAR [Member] | ||||
Product Information [Line Items] | ||||
No. of Years in Which Deferred Gain From Reinsurance Transaction is Recognized as Income | 30 years | |||
First Penn-Pacific Life Insurance Company [Member] | ||||
Product Information [Line Items] | ||||
Deferred Gain Reinsurance Transaction Income Recognition Period In Years | 15 years | |||
LNBAR [Member] | ||||
Product Information [Line Items] | ||||
Deferred Gain Reinsurance Transaction Income Recognition Period In Years | 20 years | 30 years | ||
Resolution Life [Member] | ||||
Product Information [Line Items] | ||||
Deferred Gain Reinsurance Transaction Income Recognition Period In Years | 30 years | |||
No. of Years in Which Deferred Gain From Reinsurance Transaction is Recognized as Income | 25 years | |||
Athene Holding Ltd. [Member] | ||||
Product Information [Line Items] | ||||
Deferred Gain Reinsurance Transaction Income Recognition Period In Years | 20 years |
Nature of Operations, Basis o_5
Nature of Operations, Basis of Presentation and Summary of Significant Accounting Policies (Summary of DAC, VOBA, DSI and DFEL) (Details) | 9 Months Ended |
Sep. 30, 2023 | |
Life Insurance Segment [Member] | |
Expected Amortization Period | 60 years |
Group Protection Segment [Member] | |
Expected Amortization Period | 4 years |
Maximum [Member] | Annuities [Member] | |
Expected Amortization Period | 40 years |
Maximum [Member] | Retirement Plan Services Segment [Member] | |
Expected Amortization Period | 50 years |
Minimum [Member] | Annuities [Member] | |
Expected Amortization Period | 30 years |
Minimum [Member] | Retirement Plan Services Segment [Member] | |
Expected Amortization Period | 40 years |
Adoption of ASU 2018-12 (Cumula
Adoption of ASU 2018-12 (Cumulative Effect Adjustments to Components of Stockholders’ Equity) (Details) - USD ($) $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2020 | Sep. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | |
Stockholders' equity | $ 7,318 | $ 8,604 | $ 6,884 | ||||
Retained Earnings (Deficit) [Member] | |||||||
Stockholders' equity | (520) | $ (730) | 1,414 | 1,080 | $ 3,647 | $ 3,734 | |
Accumulated Other Comprehensive Income (Loss) [Member] | |||||||
Stockholders' equity | $ (5,110) | $ (1,804) | $ (5,713) | (6,310) | $ (1,768) | 10,250 | |
Accounting Standards Update 2018-12 [Member] | |||||||
Stockholders' equity | 6,884 | ||||||
Accounting Standards Update 2018-12 [Member] | Retained Earnings (Deficit) [Member] | |||||||
Stockholders' equity | 1,080 | 3,734 | |||||
Accounting Standards Update 2018-12 [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | |||||||
Stockholders' equity | $ (6,310) | $ 10,250 | |||||
Accounting Standards Update 2018-12 [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | |||||||
DAC, VOBA, DSI and DFEL | $ 2,271 | ||||||
Additional liabilities for other insurance benefits | 1,197 | ||||||
Liability for future policy benefits and other | (1,641) | ||||||
MRBs | 1,175 | ||||||
Total | 3,002 | ||||||
Accounting Standards Update 2018-12 [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | Retained Earnings (Deficit) [Member] | |||||||
Liability for future policy benefits and other | (121) | ||||||
MRBs | (1,699) | ||||||
Total | (1,820) | ||||||
Accounting Standards Update 2018-12 [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | |||||||
DAC, VOBA, DSI and DFEL | 2,271 | ||||||
Additional liabilities for other insurance benefits | 1,197 | ||||||
Liability for future policy benefits and other | (1,520) | ||||||
MRBs | 2,874 | ||||||
Total | $ 4,822 |
Adoption of ASU 2018-12 (Effect
Adoption of ASU 2018-12 (Effect of Accounting Adoption to Consolidated Balance Sheets) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Sep. 30, 2023 | Dec. 31, 2022 | |
Reinsurance recoverables | $ 20,317 | $ 21,264 | |
Other assets | 21,674 | 19,926 | |
Future contract benefits | (37,860) | (38,302) | |
DFEL | 5,646 | 5,045 | |
Other liabilities | $ 18,286 | $ 14,657 | |
Accounting Standards Update 2018-12 [Member] | |||
DAC, VOBA and DSI | $ 12,162 | ||
Reinsurance recoverables | 20,713 | ||
Future contract benefits | (42,044) | ||
DFEL | 3,586 | ||
Accounting Standards Update 2018-12 [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | |||
DAC, VOBA and DSI | 6,079 | ||
Reinsurance recoverables | 3,163 | ||
Other assets | 5,795 | ||
Future contract benefits | (3,726) | ||
MRBs, net | (4,300) | ||
DFEL | (3,190) | ||
Other liabilities | (819) | ||
Total | 3,002 | ||
Accounting Standards Update 2018-12 [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | Retained Earnings (Deficit) [Member] | |||
Reinsurance recoverables | 607 | ||
Other assets | 5,795 | ||
Future contract benefits | (760) | ||
MRBs, net | (7,956) | ||
Other liabilities | 494 | ||
Total | (1,820) | ||
Accounting Standards Update 2018-12 [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | |||
DAC, VOBA and DSI | 6,079 | ||
Reinsurance recoverables | 2,556 | ||
Future contract benefits | (2,966) | ||
MRBs, net | 3,656 | ||
DFEL | (3,190) | ||
Other liabilities | (1,313) | ||
Total | $ 4,822 |
Adoption of ASU 2018-12 (Summar
Adoption of ASU 2018-12 (Summary of Changes in DAC, VOBA and DSI) (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Variable Annuities [Member] | ||||
DAC | $ 3,868 | $ 3,880 | $ 3,860 | |
DSI | 159 | 167 | 181 | |
Accounting Standards Update 2018-12 [Member] | ||||
DAC | $ 11,000 | |||
VOBA | 887 | |||
DSI | 275 | |||
DAC, VOBA and DSI | 12,162 | |||
Accounting Standards Update 2018-12 [Member] | Variable Annuities [Member] | ||||
DAC | 3,727 | |||
DSI | 196 | |||
Traditional Life [Member] | ||||
VOBA | 44 | 50 | 59 | |
Traditional Life [Member] | Variable Annuities [Member] | ||||
DAC | 1,328 | 1,286 | 1,146 | |
Traditional Life [Member] | Accounting Standards Update 2018-12 [Member] | ||||
DAC | 1,041 | |||
VOBA | 67 | |||
UL and Other [Member] | ||||
DAC | 5,647 | 5,518 | 5,269 | |
VOBA | 423 | 454 | 499 | |
DSI | 29 | 30 | 31 | |
UL and Other [Member] | Accounting Standards Update 2018-12 [Member] | ||||
DAC | 5,328 | |||
VOBA | 797 | |||
DSI | 35 | |||
Fixed Annuities [Member] | ||||
DAC | 419 | 439 | 448 | |
VOBA | 15 | 17 | 20 | |
DSI | 20 | 23 | 27 | |
Fixed Annuities [Member] | Accounting Standards Update 2018-12 [Member] | ||||
DAC | 479 | |||
VOBA | 23 | |||
DSI | 30 | |||
Group Protection Segment [Member] | ||||
DAC | 147 | 141 | 140 | |
Group Protection Segment [Member] | Accounting Standards Update 2018-12 [Member] | ||||
DAC | 187 | |||
Retirement Plan Services Segment [Member] | ||||
DAC | 242 | 241 | 239 | |
DSI | $ 22 | $ 17 | $ 14 | |
Retirement Plan Services Segment [Member] | Accounting Standards Update 2018-12 [Member] | ||||
DAC | 238 | |||
DSI | 14 | |||
As Previously Reported [Member] | Accounting Standards Update 2018-12 [Member] | ||||
DAC | 5,590 | |||
VOBA | 234 | |||
DSI | 259 | |||
DAC, VOBA and DSI | 6,083 | |||
As Previously Reported [Member] | Accounting Standards Update 2018-12 [Member] | Variable Annuities [Member] | ||||
DAC | 3,675 | |||
DSI | 194 | |||
As Previously Reported [Member] | Traditional Life [Member] | Accounting Standards Update 2018-12 [Member] | ||||
DAC | 1,041 | |||
VOBA | 67 | |||
As Previously Reported [Member] | UL and Other [Member] | Accounting Standards Update 2018-12 [Member] | ||||
DAC | 297 | |||
VOBA | 167 | |||
DSI | 35 | |||
As Previously Reported [Member] | Fixed Annuities [Member] | Accounting Standards Update 2018-12 [Member] | ||||
DAC | 264 | |||
DSI | 17 | |||
As Previously Reported [Member] | Group Protection Segment [Member] | Accounting Standards Update 2018-12 [Member] | ||||
DAC | 187 | |||
As Previously Reported [Member] | Retirement Plan Services Segment [Member] | Accounting Standards Update 2018-12 [Member] | ||||
DAC | 126 | |||
DSI | 13 | |||
Restatement Adjustments [Member] | Accounting Standards Update 2018-12 [Member] | ||||
DAC | 5,410 | |||
VOBA | 653 | |||
DSI | 16 | |||
DAC, VOBA and DSI | 6,079 | |||
Restatement Adjustments [Member] | Accounting Standards Update 2018-12 [Member] | Variable Annuities [Member] | ||||
DAC | 52 | |||
DSI | 2 | |||
Restatement Adjustments [Member] | UL and Other [Member] | Accounting Standards Update 2018-12 [Member] | ||||
DAC | 5,031 | |||
VOBA | 630 | |||
Restatement Adjustments [Member] | Fixed Annuities [Member] | Accounting Standards Update 2018-12 [Member] | ||||
DAC | 215 | |||
VOBA | 23 | |||
DSI | 13 | |||
Restatement Adjustments [Member] | Retirement Plan Services Segment [Member] | Accounting Standards Update 2018-12 [Member] | ||||
DAC | 112 | |||
DSI | $ 1 |
Adoption of ASU 2018-12 (Summ_2
Adoption of ASU 2018-12 (Summary of Changes in DFEL) (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2012 |
DFEL | $ 5,646 | $ 5,045 | |||
Accounting Standards Update 2018-12 [Member] | |||||
DFEL | $ 3,586 | ||||
UL and Other [Member] | |||||
DFEL | 5,343 | 4,735 | $ 3,902 | $ 4,735 | |
UL and Other [Member] | Accounting Standards Update 2018-12 [Member] | |||||
DFEL | 3,262 | ||||
As Previously Reported [Member] | Accounting Standards Update 2018-12 [Member] | |||||
DFEL | 5,695 | 396 | |||
As Previously Reported [Member] | UL and Other [Member] | Accounting Standards Update 2018-12 [Member] | |||||
DFEL | 77 | ||||
Restatement Adjustments [Member] | Accounting Standards Update 2018-12 [Member] | |||||
DFEL | 3,190 | ||||
Restatement Adjustments [Member] | UL and Other [Member] | Accounting Standards Update 2018-12 [Member] | |||||
DFEL | 3,185 | ||||
Variable Annuities [Member] | |||||
DFEL | $ 303 | $ 310 | $ 318 | $ 310 | |
Variable Annuities [Member] | Accounting Standards Update 2018-12 [Member] | |||||
DFEL | 324 | ||||
Variable Annuities [Member] | As Previously Reported [Member] | Accounting Standards Update 2018-12 [Member] | |||||
DFEL | 319 | ||||
Variable Annuities [Member] | Restatement Adjustments [Member] | Accounting Standards Update 2018-12 [Member] | |||||
DFEL | $ 5 |
Adoption of ASU 2018-12 (Summ_3
Adoption of ASU 2018-12 (Summary of Changes in Future Contract Benefits) (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2020 |
LFPB | $ 37,860 | $ 38,302 | |
Accounting Standards Update 2018-12 [Member] | |||
LFPB | $ 42,044 | ||
Accounting Standards Update 2018-12 [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | |||
LFPB | 3,726 | ||
Traditional Life [Member] | Accounting Standards Update 2018-12 [Member] | |||
LFPB | 3,912 | ||
Annuities Segment [Member] | Accounting Standards Update 2018-12 [Member] | |||
LFPB | 2,667 | ||
UL and Other [Member] | Accounting Standards Update 2018-12 [Member] | |||
LFPB | 12,264 | ||
Group Protection Segment [Member] | Accounting Standards Update 2018-12 [Member] | |||
LFPB | 5,939 | ||
Other Operations [Member] | Accounting Standards Update 2018-12 [Member] | |||
LFPB | 13,737 | ||
All Other [Member] | Accounting Standards Update 2018-12 [Member] | |||
LFPB | 3,525 | ||
Retained Earnings (Deficit) [Member] | Accounting Standards Update 2018-12 [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | |||
LFPB | 760 | ||
Retained Earnings (Deficit) [Member] | Traditional Life [Member] | Accounting Standards Update 2018-12 [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | |||
LFPB | (2) | ||
Retained Earnings (Deficit) [Member] | Annuities Segment [Member] | Accounting Standards Update 2018-12 [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | |||
LFPB | 44 | ||
Retained Earnings (Deficit) [Member] | UL and Other [Member] | Accounting Standards Update 2018-12 [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | |||
LFPB | 92 | ||
Retained Earnings (Deficit) [Member] | Other Operations [Member] | Accounting Standards Update 2018-12 [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | |||
LFPB | 626 | ||
Protective [Member] | Other Operations [Member] | Accounting Standards Update 2018-12 [Member] | |||
LFPB | 7,400 | ||
Swiss Re [Member] | Other Operations [Member] | Accounting Standards Update 2018-12 [Member] | |||
LFPB | 3,300 | ||
As Previously Reported [Member] | Accounting Standards Update 2018-12 [Member] | |||
LFPB | $ 41,203 | 38,318 | |
As Previously Reported [Member] | Traditional Life [Member] | Accounting Standards Update 2018-12 [Member] | |||
LFPB | 3,062 | ||
As Previously Reported [Member] | Annuities Segment [Member] | Accounting Standards Update 2018-12 [Member] | |||
LFPB | 2,313 | ||
As Previously Reported [Member] | UL and Other [Member] | Accounting Standards Update 2018-12 [Member] | |||
LFPB | 13,687 | ||
As Previously Reported [Member] | Group Protection Segment [Member] | Accounting Standards Update 2018-12 [Member] | |||
LFPB | 5,422 | ||
As Previously Reported [Member] | Other Operations [Member] | Accounting Standards Update 2018-12 [Member] | |||
LFPB | 10,309 | ||
As Previously Reported [Member] | All Other [Member] | Accounting Standards Update 2018-12 [Member] | |||
LFPB | 3,525 | ||
As Previously Reported [Member] | Protective [Member] | Other Operations [Member] | Accounting Standards Update 2018-12 [Member] | |||
LFPB | 6,300 | ||
As Previously Reported [Member] | Swiss Re [Member] | Other Operations [Member] | Accounting Standards Update 2018-12 [Member] | |||
LFPB | 1,800 | ||
Impact from Removal of Shadow Balances from AOCI [Member] | Accounting Standards Update 2018-12 [Member] | |||
LFPB | (1,700) | ||
Impact from Removal of Shadow Balances from AOCI [Member] | Annuities Segment [Member] | Accounting Standards Update 2018-12 [Member] | |||
LFPB | (105) | ||
Impact from Removal of Shadow Balances from AOCI [Member] | UL and Other [Member] | Accounting Standards Update 2018-12 [Member] | |||
LFPB | (1,515) | ||
Impact from Removal of Shadow Balances from AOCI [Member] | Other Operations [Member] | Accounting Standards Update 2018-12 [Member] | |||
LFPB | (80) | ||
Single A Discount Rate Measurement in AOCI [Member] | Accounting Standards Update 2018-12 [Member] | |||
LFPB | 4,666 | ||
Single A Discount Rate Measurement in AOCI [Member] | Traditional Life [Member] | Accounting Standards Update 2018-12 [Member] | |||
LFPB | 852 | ||
Single A Discount Rate Measurement in AOCI [Member] | Annuities Segment [Member] | Accounting Standards Update 2018-12 [Member] | |||
LFPB | 415 | ||
Single A Discount Rate Measurement in AOCI [Member] | Group Protection Segment [Member] | Accounting Standards Update 2018-12 [Member] | |||
LFPB | 517 | ||
Single A Discount Rate Measurement in AOCI [Member] | Other Operations [Member] | Accounting Standards Update 2018-12 [Member] | |||
LFPB | $ 2,882 |
Adoption of ASU 2018-12 (Summ_4
Adoption of ASU 2018-12 (Summary of Changes in Reinsurance Recoverables) (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2020 |
Reinsurance recoverables | $ 20,317 | $ 21,264 | |
Accounting Standards Update 2018-12 [Member] | |||
Reinsurance recoverables | $ 20,713 | ||
Accounting Standards Update 2018-12 [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | |||
Reinsurance recoverables | 3,163 | ||
Traditional Life [Member] | Accounting Standards Update 2018-12 [Member] | |||
Reinsurance recoverables | 460 | ||
UL and Other [Member] | Accounting Standards Update 2018-12 [Member] | |||
Reinsurance recoverables | 919 | ||
Payout Annuities [Member] | Accounting Standards Update 2018-12 [Member] | |||
Reinsurance recoverables | 5 | ||
Group Protection Segment [Member] | Accounting Standards Update 2018-12 [Member] | |||
Reinsurance recoverables | 162 | ||
Other Operations [Member] | Accounting Standards Update 2018-12 [Member] | |||
Reinsurance recoverables | 17,821 | ||
All Other [Member] | Accounting Standards Update 2018-12 [Member] | |||
Reinsurance recoverables | 1,346 | ||
Retained Earnings (Deficit) [Member] | Accounting Standards Update 2018-12 [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | |||
Reinsurance recoverables | 607 | ||
Retained Earnings (Deficit) [Member] | UL and Other [Member] | Accounting Standards Update 2018-12 [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | |||
Reinsurance recoverables | (3) | ||
Retained Earnings (Deficit) [Member] | Other Operations [Member] | Accounting Standards Update 2018-12 [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | |||
Reinsurance recoverables | 610 | ||
As Previously Reported [Member] | Accounting Standards Update 2018-12 [Member] | |||
Reinsurance recoverables | $ 23,910 | 17,550 | |
As Previously Reported [Member] | Traditional Life [Member] | Accounting Standards Update 2018-12 [Member] | |||
Reinsurance recoverables | 372 | ||
As Previously Reported [Member] | UL and Other [Member] | Accounting Standards Update 2018-12 [Member] | |||
Reinsurance recoverables | 922 | ||
As Previously Reported [Member] | Payout Annuities [Member] | Accounting Standards Update 2018-12 [Member] | |||
Reinsurance recoverables | 5 | ||
As Previously Reported [Member] | Group Protection Segment [Member] | Accounting Standards Update 2018-12 [Member] | |||
Reinsurance recoverables | 148 | ||
As Previously Reported [Member] | Other Operations [Member] | Accounting Standards Update 2018-12 [Member] | |||
Reinsurance recoverables | 14,757 | ||
As Previously Reported [Member] | All Other [Member] | Accounting Standards Update 2018-12 [Member] | |||
Reinsurance recoverables | 1,346 | ||
Single A Discount Rate Measurement in AOCI [Member] | Accounting Standards Update 2018-12 [Member] | |||
Reinsurance recoverables | 2,556 | ||
Single A Discount Rate Measurement in AOCI [Member] | Traditional Life [Member] | Accounting Standards Update 2018-12 [Member] | |||
Reinsurance recoverables | 88 | ||
Single A Discount Rate Measurement in AOCI [Member] | Group Protection Segment [Member] | Accounting Standards Update 2018-12 [Member] | |||
Reinsurance recoverables | 14 | ||
Single A Discount Rate Measurement in AOCI [Member] | Other Operations [Member] | Accounting Standards Update 2018-12 [Member] | |||
Reinsurance recoverables | 2,454 | ||
Protective [Member] | Other Operations [Member] | Accounting Standards Update 2018-12 [Member] | |||
Reinsurance recoverables | 13,200 | ||
Protective [Member] | As Previously Reported [Member] | Other Operations [Member] | Accounting Standards Update 2018-12 [Member] | |||
Reinsurance recoverables | 12,000 | ||
Swiss Re [Member] | Other Operations [Member] | Accounting Standards Update 2018-12 [Member] | |||
Reinsurance recoverables | 3,200 | ||
Swiss Re [Member] | As Previously Reported [Member] | Other Operations [Member] | Accounting Standards Update 2018-12 [Member] | |||
Reinsurance recoverables | $ 1,700 |
Adoption of ASU 2018-12 (Summ_5
Adoption of ASU 2018-12 (Summary of Changes in Net Liability Position of MRBs) (Details) - Accounting Standards Update 2018-12 [Member] $ in Millions | Dec. 31, 2020 USD ($) |
MRBs, net | $ 5,334 |
Fixed Annuities [Member] | |
MRBs, net | 118 |
Retirement Plan Services Segment [Member] | |
MRBs, net | 9 |
Retained Earnings (Deficit) [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | |
MRBs, net | 7,956 |
Retained Earnings (Deficit) [Member] | Fixed Annuities [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | |
MRBs, net | (22) |
Retained Earnings (Deficit) [Member] | Retirement Plan Services Segment [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | |
MRBs, net | 10 |
As Previously Reported [Member] | |
MRBs, net | 1,034 |
As Previously Reported [Member] | Fixed Annuities [Member] | |
MRBs, net | 192 |
As Previously Reported [Member] | Retirement Plan Services Segment [Member] | |
MRBs, net | 11 |
Cumulative Effect of Credit Risk to AOCI [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | |
MRBs, net | (3,656) |
Cumulative Effect of Credit Risk to AOCI [Member] | Fixed Annuities [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | |
MRBs, net | (52) |
Cumulative Effect of Credit Risk to AOCI [Member] | Retirement Plan Services Segment [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | |
MRBs, net | (12) |
Variable Annuities [Member] | |
MRBs, net | 5,207 |
Variable Annuities [Member] | Retained Earnings (Deficit) [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | |
MRBs, net | 7,968 |
Variable Annuities [Member] | As Previously Reported [Member] | |
MRBs, net | 831 |
Variable Annuities [Member] | Cumulative Effect of Credit Risk to AOCI [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | |
MRBs, net | $ (3,592) |
Adoption of ASU 2018-12 (Summ_6
Adoption of ASU 2018-12 (Summary of Changes in Net Asset Position of Ceded MRBs) (Details) - Accounting Standards Update 2018-12 [Member] $ in Millions | Dec. 31, 2020 USD ($) |
Ceded MRBs, Net | $ 6,539 |
Retirement Plan Services Segment [Member] | |
Ceded MRBs, Net | 11 |
Retained Earnings (Deficit) [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | |
Ceded MRBs, Net | 5,710 |
Retained Earnings (Deficit) [Member] | Retirement Plan Services Segment [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | |
Ceded MRBs, Net | 10 |
As Previously Reported [Member] | |
Ceded MRBs, Net | 829 |
As Previously Reported [Member] | Retirement Plan Services Segment [Member] | |
Ceded MRBs, Net | 1 |
Variable Annuities [Member] | |
Ceded MRBs, Net | 6,528 |
Variable Annuities [Member] | Retained Earnings (Deficit) [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | |
Ceded MRBs, Net | 5,700 |
Variable Annuities [Member] | As Previously Reported [Member] | |
Ceded MRBs, Net | $ 828 |
Adoption of ASU 2018-12 (Summ_7
Adoption of ASU 2018-12 (Summary of Effect on Previously Reported Consolidated Balance Sheets) (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Dec. 31, 2020 |
Assets | ||||
Deferred acquisition costs, value of business acquired and deferred sales inducements | $ 12,363 | $ 12,263 | ||
Reinsurance recoverables, net of allowance for credit losses | 20,317 | 21,264 | ||
Market risk benefit assets | 4,108 | 2,807 | ||
Other assets | 21,674 | 19,926 | ||
Total assets | 343,555 | 335,663 | ||
Liabilities | ||||
Future contract benefits | 37,860 | 38,302 | ||
Market risk benefit liabilities | 1,385 | 2,078 | ||
Deferred front-end loads | 5,646 | 5,045 | ||
Other liabilities | 18,286 | 14,657 | ||
Total liabilities | 336,237 | 327,059 | ||
Stockholder’s Equity | ||||
Retained earnings (deficit) | (520) | 1,414 | ||
Accumulated other comprehensive income (loss) | (5,110) | (5,713) | ||
Total stockholder’s equity | $ 7,318 | 8,604 | $ 6,884 | |
Accounting Standards Update 2018-12 [Member] | ||||
Assets | ||||
Reinsurance recoverables, net of allowance for credit losses | $ 20,713 | |||
Liabilities | ||||
Future contract benefits | 42,044 | |||
Deferred front-end loads | 3,586 | |||
Stockholder’s Equity | ||||
Total stockholder’s equity | 6,884 | |||
Accounting Standards Update 2018-12 [Member] | As Previously Reported [Member] | ||||
Assets | ||||
Deferred acquisition costs, value of business acquired and deferred sales inducements | 13,873 | |||
Reinsurance recoverables, net of allowance for credit losses | 23,910 | 17,550 | ||
Other assets | 21,080 | |||
Total assets | 338,266 | |||
Liabilities | ||||
Future contract benefits | 41,203 | 38,318 | ||
Deferred front-end loads | 5,695 | $ 396 | ||
Other liabilities | 16,125 | |||
Total liabilities | 330,000 | |||
Stockholder’s Equity | ||||
Retained earnings (deficit) | 2,436 | |||
Accumulated other comprehensive income (loss) | (7,073) | |||
Total stockholder’s equity | 8,266 | 6,479 | ||
Accounting Standards Update 2018-12 [Member] | Restatement Impacts [Member] | ||||
Assets | ||||
Deferred acquisition costs, value of business acquired and deferred sales inducements | (1,610) | |||
Reinsurance recoverables, net of allowance for credit losses | (2,646) | |||
Market risk benefit assets | 2,807 | |||
Other assets | (1,154) | |||
Total assets | (2,603) | |||
Liabilities | ||||
Future contract benefits | (2,901) | |||
Market risk benefit liabilities | 2,078 | |||
Deferred front-end loads | (650) | |||
Other liabilities | (1,468) | |||
Total liabilities | (2,941) | |||
Stockholder’s Equity | ||||
Retained earnings (deficit) | (1,022) | |||
Accumulated other comprehensive income (loss) | 1,360 | |||
Total stockholder’s equity | $ 338 | $ 405 |
Adoption of ASU 2018-12 (Summ_8
Adoption of ASU 2018-12 (Summary of Effect on Previously Reported Consolidated Statements of Comprehensive Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Revenues | ||||
Fee income | $ 1,305 | $ 1,324 | $ 3,934 | $ 4,065 |
Realized gain (loss) | (867) | 33 | (4,513) | 541 |
Total revenues | 3,577 | 4,265 | 8,841 | 13,355 |
Expenses | ||||
Benefits | 1,895 | 2,094 | 5,766 | 6,118 |
Interest credited | 827 | 722 | 2,412 | 2,121 |
Market risk benefit (gain) loss | (1,014) | (74) | (1,182) | 755 |
Policyholder liability remeasurement (gain) loss | 157 | 2,370 | (70) | 2,496 |
Commissions and other expenses | 1,275 | 1,219 | 3,805 | 3,591 |
Total expenses | 3,225 | 7,045 | 10,974 | 15,929 |
Income (loss) before taxes | 352 | (2,780) | (2,133) | (2,574) |
Federal income tax expense (benefit) | 37 | (488) | (564) | (500) |
Net income (loss) | 315 | (2,292) | (1,569) | (2,074) |
Other comprehensive income (loss), net of tax: | ||||
Unrealized investment gain (loss) | (2,807) | (4,909) | 1,088 | (18,727) |
Market risk benefit gain (loss) | (150) | 224 | ||
Policyholder liability discount rate remeasurement gain (loss) | 345 | 517 | 257 | 1,943 |
Total other comprehensive income (loss), net of tax | (3,306) | (4,542) | 603 | (16,560) |
Comprehensive income (loss) | $ (2,991) | (6,834) | $ (966) | (18,634) |
Accounting Standards Update 2018-12 [Member] | As Previously Reported [Member] | ||||
Revenues | ||||
Fee income | 1,438 | 4,384 | ||
Realized gain (loss) | 11 | 338 | ||
Total revenues | 4,357 | 13,471 | ||
Expenses | ||||
Benefits | 4,498 | 8,748 | ||
Interest credited | 717 | 2,109 | ||
Commissions and other expenses | 1,205 | 3,473 | ||
Total expenses | 7,134 | 15,179 | ||
Income (loss) before taxes | (2,777) | (1,708) | ||
Federal income tax expense (benefit) | (320) | |||
Net income (loss) | (2,289) | (1,388) | ||
Other comprehensive income (loss), net of tax: | ||||
Unrealized investment gain (loss) | (4,140) | (14,577) | ||
Total other comprehensive income (loss), net of tax | (4,140) | (14,577) | ||
Comprehensive income (loss) | (6,429) | (15,965) | ||
Accounting Standards Update 2018-12 [Member] | Restatement Impacts [Member] | ||||
Revenues | ||||
Fee income | (114) | (319) | ||
Realized gain (loss) | 22 | 203 | ||
Total revenues | (92) | (116) | ||
Expenses | ||||
Benefits | (2,404) | (2,630) | ||
Interest credited | 5 | 12 | ||
Market risk benefit (gain) loss | (74) | 755 | ||
Policyholder liability remeasurement (gain) loss | 2,370 | 2,496 | ||
Commissions and other expenses | 14 | 118 | ||
Total expenses | (89) | 750 | ||
Income (loss) before taxes | (3) | (866) | ||
Federal income tax expense (benefit) | (180) | |||
Net income (loss) | (3) | (686) | ||
Other comprehensive income (loss), net of tax: | ||||
Unrealized investment gain (loss) | (769) | (4,150) | ||
Market risk benefit gain (loss) | (150) | 224 | ||
Policyholder liability discount rate remeasurement gain (loss) | 517 | 1,943 | ||
Total other comprehensive income (loss), net of tax | (402) | (1,983) | ||
Comprehensive income (loss) | $ (405) | $ (2,669) |
Adoption of ASU 2018-12 (Summ_9
Adoption of ASU 2018-12 (Summary of Effect on Previously Reported Consolidated Statements of Stockholders Equity) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2020 | |
Balance | $ 8,604 | ||||
Net income (loss) | $ 315 | $ (2,292) | (1,569) | $ (2,074) | |
Other comprehensive income (loss), net of tax | (3,306) | (4,542) | 603 | (16,560) | |
Balance | 7,318 | 6,884 | 7,318 | 6,884 | |
Retained Earnings (Deficit) [Member] | |||||
Balance | (730) | 3,647 | 1,414 | 3,734 | |
Net income (loss) | 315 | (2,292) | (1,569) | (2,074) | |
Balance | (520) | 1,080 | (520) | 1,080 | |
Accumulated Other Comprehensive Income (Loss) [Member] | |||||
Balance | (1,804) | (1,768) | (5,713) | 10,250 | |
Other comprehensive income (loss), net of tax | (3,306) | (4,542) | 603 | (16,560) | |
Balance | $ (5,110) | (6,310) | (5,110) | (6,310) | |
Accounting Standards Update 2018-12 [Member] | |||||
Balance | 6,884 | 6,884 | |||
Accounting Standards Update 2018-12 [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | |||||
Capital contribution from Lincoln National Corporation | $ 3,002 | ||||
Accounting Standards Update 2018-12 [Member] | Retained Earnings (Deficit) [Member] | |||||
Balance | 3,734 | ||||
Net income (loss) | (2,074) | ||||
Balance | 1,080 | 1,080 | |||
Accounting Standards Update 2018-12 [Member] | Retained Earnings (Deficit) [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | |||||
Capital contribution from Lincoln National Corporation | (1,820) | ||||
Accounting Standards Update 2018-12 [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | |||||
Balance | 10,250 | ||||
Other comprehensive income (loss), net of tax | (16,560) | ||||
Balance | (6,310) | (6,310) | |||
Accounting Standards Update 2018-12 [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | |||||
Capital contribution from Lincoln National Corporation | $ 4,822 | ||||
Accounting Standards Update 2018-12 [Member] | As Previously Reported [Member] | |||||
Balance | 8,266 | ||||
Net income (loss) | (2,289) | (1,388) | |||
Other comprehensive income (loss), net of tax | (4,140) | (14,577) | |||
Balance | 6,479 | 6,479 | |||
Accounting Standards Update 2018-12 [Member] | As Previously Reported [Member] | Retained Earnings (Deficit) [Member] | |||||
Balance | 4,962 | 4,366 | |||
Net income (loss) | (2,289) | (1,388) | |||
Balance | 2,398 | 2,398 | |||
Accounting Standards Update 2018-12 [Member] | As Previously Reported [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | |||||
Balance | (3,893) | 6,544 | |||
Other comprehensive income (loss), net of tax | (4,140) | (14,577) | |||
Balance | (8,033) | (8,033) | |||
Accounting Standards Update 2018-12 [Member] | Restatement Impacts [Member] | |||||
Balance | $ 338 | ||||
Net income (loss) | (3) | (686) | |||
Other comprehensive income (loss), net of tax | (402) | (1,983) | |||
Balance | 405 | 405 | |||
Accounting Standards Update 2018-12 [Member] | Restatement Impacts [Member] | Retained Earnings (Deficit) [Member] | |||||
Balance | (1,315) | (632) | |||
Net income (loss) | (3) | (686) | |||
Balance | (1,318) | (1,318) | |||
Accounting Standards Update 2018-12 [Member] | Restatement Impacts [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | |||||
Balance | 2,125 | 3,706 | |||
Other comprehensive income (loss), net of tax | (402) | (1,983) | |||
Balance | $ 1,723 | $ 1,723 |
Adoption of ASU 2018-12 (Sum_10
Adoption of ASU 2018-12 (Summary of Effect on Previously Reported Consolidated Statements of Cash Flows) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Cash Flows from Operating Activities | ||||
Net income (loss) | $ 315 | $ (2,292) | $ (1,569) | $ (2,074) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||
Realized (gain) loss | 867 | (33) | 4,513 | (541) |
Market risk benefit (gain) loss | $ (1,014) | (74) | (1,182) | 755 |
Change in: | ||||
Deferred acquisition costs, value of business acquired, deferred sales inducements and deferred front-end loads | 501 | 370 | ||
Insurance liabilities and reinsurance-related balances | (1,327) | 1,944 | ||
Accrued expenses | (67) | (379) | ||
Federal income tax accruals | (415) | (489) | ||
Other | $ (145) | 419 | ||
Accounting Standards Update 2018-12 [Member] | As Previously Reported [Member] | ||||
Cash Flows from Operating Activities | ||||
Net income (loss) | (2,289) | (1,388) | ||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||
Realized (gain) loss | (11) | (338) | ||
Change in: | ||||
Deferred acquisition costs, value of business acquired, deferred sales inducements and deferred front-end loads | 3 | |||
Insurance liabilities and reinsurance-related balances | 2,016 | |||
Accrued expenses | (375) | |||
Federal income tax accruals | (308) | |||
Other | 395 | |||
Accounting Standards Update 2018-12 [Member] | Restatement Impacts [Member] | ||||
Cash Flows from Operating Activities | ||||
Net income (loss) | (3) | (686) | ||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||
Realized (gain) loss | (22) | (203) | ||
Market risk benefit (gain) loss | $ (74) | 755 | ||
Change in: | ||||
Deferred acquisition costs, value of business acquired, deferred sales inducements and deferred front-end loads | 367 | |||
Insurance liabilities and reinsurance-related balances | (72) | |||
Accrued expenses | (4) | |||
Federal income tax accruals | (181) | |||
Other | $ 24 |
Investments (Narrative) (Detail
Investments (Narrative) (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 USD ($) loan item | Sep. 30, 2023 USD ($) loan item | Dec. 31, 2022 USD ($) loan item | |
Schedule of Investments [Line Items] | |||
Decrease in gross AFS securities unrealized gains (losses) | $ 1,400,000,000 | ||
Number of partnerships in alternative investment portfolio | item | 337 | 337 | 328 |
Alternative investments as a percentage of overall invested assets | 2% | 2% | |
Fair value of collateral received that we are permitted to sell or re-pledge | $ 25,000,000 | $ 25,000,000 | |
Securities that have been re-pledged | 0 | 0 | |
Investment commitments | 2,300,000,000 | 2,300,000,000 | |
Investment commitments for limited partnerships | 1,800,000,000 | 1,800,000,000 | |
Investment commitments for private placements | 217,000,000 | 217,000,000 | |
Investment commitments for mortgage loans on real estate | 257,000,000 | 257,000,000 | |
Fixed maturity AFS securities | 100,387,000,000 | 100,387,000,000 | $ 99,465,000,000 |
Asset Pledged as Collateral [Member] | |||
Schedule of Investments [Line Items] | |||
Fixed maturity AFS securities | 87,000,000 | 87,000,000 | |
Derivative Counterparties [Member] | |||
Schedule of Investments [Line Items] | |||
Fair value of collateral received that we are permitted to sell or re-pledge | 1,000,000,000 | 1,000,000,000 | |
Securities that have been re-pledged | $ 335,000,000 | $ 335,000,000 | |
Minimum [Member] | |||
Schedule of Investments [Line Items] | |||
Percentage of the fair value of securities obtained as collateral under reverse repurchase agreements. | 80% | 80% | |
Maximum [Member] | |||
Schedule of Investments [Line Items] | |||
Percentage of the fair value of securities obtained as collateral under reverse repurchase agreements. | 95% | 95% | |
Loan modifications | $ 1,000,000 | $ 1,000,000 | |
Mortgage Loans On Real Estate [Member] | Commercial [Member] | |||
Schedule of Investments [Line Items] | |||
Impaired financing receivable, principal balance | $ 3,000,000 | $ 3,000,000 | |
Mortgage Loans On Real Estate [Member] | Commercial [Member] | Maximum [Member] | |||
Schedule of Investments [Line Items] | |||
Impaired financing receivable, principal balance | $ 1,000,000 | ||
Mortgage Loans On Real Estate [Member] | Residential [Member] | |||
Schedule of Investments [Line Items] | |||
Number of loans past due | loan | 89 | 89 | 73 |
Financing Receivable, Number of Loans In Foreclosure | loan | 66 | 66 | 49 |
Financing Receivable, 90 Days or More Past Due, Still Accruing | $ 30,000,000 | $ 30,000,000 | $ 21,000,000 |
Number of impaired loans | loan | 67 | 67 | 37 |
Impaired financing receivable, principal balance | $ 34,000,000 | $ 34,000,000 | $ 16,000,000 |
Geographic Concentration Risk [Member] | Mortgage Loans On Real Estate [Member] | Commercial [Member] | California [Member] | |||
Schedule of Investments [Line Items] | |||
Concentration risk, percentage | 28% | 28% | |
Geographic Concentration Risk [Member] | Mortgage Loans On Real Estate [Member] | Commercial [Member] | Texas [Member] | |||
Schedule of Investments [Line Items] | |||
Concentration risk, percentage | 10% | 9% | |
Geographic Concentration Risk [Member] | Mortgage Loans On Real Estate [Member] | Residential [Member] | California [Member] | |||
Schedule of Investments [Line Items] | |||
Concentration risk, percentage | 14% | 17% | |
Geographic Concentration Risk [Member] | Mortgage Loans On Real Estate [Member] | Residential [Member] | NEW JERSEY | |||
Schedule of Investments [Line Items] | |||
Concentration risk, percentage | 12% | ||
Geographic Concentration Risk [Member] | Mortgage Loans On Real Estate [Member] | Residential [Member] | NEW YORK | |||
Schedule of Investments [Line Items] | |||
Concentration risk, percentage | 13% | ||
Corporate Bonds [Member] | |||
Schedule of Investments [Line Items] | |||
Percentage of fair value rated as investment grade | 96% | 96% | 96% |
Amortized cost of portfolio rated below investment grade | $ 3,200,000,000 | $ 3,200,000,000 | $ 3,500,000,000 |
Fair value of portfolio rated below investment grade | 3,000,000,000 | 3,000,000,000 | 3,300,000,000 |
Securities [Member] | White Chapel LLC [Member] | Investments [Member] | |||
Schedule of Investments [Line Items] | |||
Fair value | 1,000,000,000 | 1,000,000,000 | |
Securities Investment [Member] | White Chapel V LLC [Member] | Investments [Member] | |||
Schedule of Investments [Line Items] | |||
Fair value | 1,300,000,000 | $ 1,300,000,000 | |
Securities Investment [Member] | White Chapel LLC [Member] | Investments [Member] | |||
Schedule of Investments [Line Items] | |||
Fair value | $ 1,000,000,000 | ||
Concentration risk, percentage | 1% | 1% | |
Securities Investment [Member] | Financial Service [Member] | Investments [Member] | |||
Schedule of Investments [Line Items] | |||
Fair value | 19,500,000,000 | $ 19,500,000,000 | $ 19,200,000,000 |
Concentration risk, percentage | 14% | 15% | |
Securities Investment [Member] | Consumer Non-Cyclical Industry [Member] | Investments [Member] | |||
Schedule of Investments [Line Items] | |||
Fair value | $ 14,500,000,000 | $ 14,500,000,000 | $ 14,300,000,000 |
Concentration risk, percentage | 11% | 11% | |
Securities Investment [Member] | Federal Home Loan Mortgage Corporation [Member] | Investments [Member] | |||
Schedule of Investments [Line Items] | |||
Fair value | $ 702,000,000 | ||
Concentration risk, percentage | 1% |
Investments (Reconciliation Of
Investments (Reconciliation Of Available-For-Sale Securities From Cost Basis To Fair Value) (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | ||||||
Amortized Cost, Total | $ 110,943 | $ 110,944 | ||||
Gross Unrealized Gains | 590 | 1,041 | ||||
Gross Unrealized Losses | 11,125 | 12,499 | ||||
Allowance for Credit Losses | 21 | $ 25 | 21 | $ 18 | $ 12 | $ 19 |
Fair Value | 100,387 | 99,465 | ||||
Corporate Bonds [Member] | ||||||
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | ||||||
Amortized Cost, Total | 87,724 | 88,950 | ||||
Gross Unrealized Gains | 433 | 763 | ||||
Gross Unrealized Losses | 9,387 | 10,538 | ||||
Allowance for Credit Losses | 9 | 13 | 9 | 7 | 7 | 17 |
Fair Value | 78,761 | 79,166 | ||||
ABS [Member] | ||||||
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | ||||||
Amortized Cost, Total | 13,177 | 11,791 | ||||
Gross Unrealized Gains | 36 | 37 | ||||
Gross Unrealized Losses | 820 | 925 | ||||
Allowance for Credit Losses | 5 | 4 | ||||
Fair Value | 12,388 | 10,899 | ||||
U.S. Government Bonds [Member] | ||||||
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | ||||||
Amortized Cost, Total | 417 | 377 | ||||
Gross Unrealized Gains | 2 | 5 | ||||
Gross Unrealized Losses | 47 | 31 | ||||
Fair Value | 372 | 351 | ||||
Foreign Government Bonds [Member] | ||||||
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | ||||||
Amortized Cost, Total | 321 | 339 | ||||
Gross Unrealized Gains | 10 | 17 | ||||
Gross Unrealized Losses | 61 | 45 | ||||
Fair Value | 270 | 311 | ||||
RMBS [Member] | ||||||
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | ||||||
Amortized Cost, Total | 2,067 | 2,025 | ||||
Gross Unrealized Gains | 18 | 21 | ||||
Gross Unrealized Losses | 210 | 203 | ||||
Allowance for Credit Losses | 6 | $ 6 | 7 | $ 5 | $ 3 | $ 1 |
Fair Value | 1,869 | 1,836 | ||||
CMBS [Member] | ||||||
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | ||||||
Amortized Cost, Total | 1,937 | 1,908 | ||||
Gross Unrealized Gains | 3 | |||||
Gross Unrealized Losses | 236 | 244 | ||||
Fair Value | 1,701 | 1,667 | ||||
State And Municipal Bonds [Member] | ||||||
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | ||||||
Amortized Cost, Total | 4,950 | 5,198 | ||||
Gross Unrealized Gains | 67 | 170 | ||||
Gross Unrealized Losses | 346 | 483 | ||||
Fair Value | 4,671 | 4,885 | ||||
Hybrid And Redeemable Preferred Securities [Member] | ||||||
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | ||||||
Amortized Cost, Total | 350 | 356 | ||||
Gross Unrealized Gains | 24 | 25 | ||||
Gross Unrealized Losses | 18 | 30 | ||||
Allowance for Credit Losses | 1 | 1 | ||||
Fair Value | $ 355 | $ 350 |
Investments (Available-For-Sale
Investments (Available-For-Sale Securities By Contractual Maturities) (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Available-for-sale Securities, Debt Maturities, Amortized Cost | ||
Amortized Cost, Total | $ 110,943 | $ 110,944 |
Available-for-sale Securities, Debt Maturities, Fair Value | ||
Available-for-sale Securities, Debt Securities, Total | 100,387 | $ 99,465 |
Fixed Maturity AFS Securities Excluding Structured Securities [Member] | ||
Available-for-sale Securities, Debt Maturities, Amortized Cost | ||
Due in one year or less | 3,950 | |
Due after one year through five years | 18,900 | |
Due after five years through ten years | 18,279 | |
Due after ten years | 52,633 | |
Amortized Cost, Total | 93,762 | |
Available-for-sale Securities, Debt Maturities, Fair Value | ||
Due in one year or less | 3,907 | |
Due after one year through five years | 17,925 | |
Due after five years through ten years | 16,548 | |
Due after ten years | 46,049 | |
Available-for-sale Securities, Debt Securities, Total | 84,429 | |
Structured Securities [Member] | ||
Available-for-sale Securities, Debt Maturities, Amortized Cost | ||
Amortized Cost, Total | 17,181 | |
Available-for-sale Securities, Debt Maturities, Fair Value | ||
Available-for-sale Securities, Debt Securities, Total | $ 15,958 |
Investments (Fair Value And Gro
Investments (Fair Value And Gross Unrealized Losses In A Continuous Unrealized Loss Position) (Details) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 USD ($) security | Dec. 31, 2022 USD ($) security | |
Schedule of Available-for-sale Securities [Line Items] | ||
Total number of fixed maturity AFS securities in an unrealized loss position | security | 8,537 | 8,106 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ||
Less Than or Equal to Twelve Months | $ 24,603 | $ 69,198 |
Greater Than Twelve Months | 59,051 | 11,105 |
Fair Value - Total | 83,654 | 80,303 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ||
Less Than or Equal to Twelve Months | 1,294 | 10,013 |
Greater Than Twelve Months | 9,831 | 2,486 |
Gross Unrealized Losses - Total | 11,125 | 12,499 |
Unrealized holding gains (losses) arising during the period | 11 | 6 |
Corporate Bonds [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ||
Less Than or Equal to Twelve Months | 19,506 | 57,656 |
Greater Than Twelve Months | 47,089 | 6,867 |
Fair Value - Total | 66,595 | 64,523 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ||
Less Than or Equal to Twelve Months | 1,136 | 8,684 |
Greater Than Twelve Months | 8,251 | 1,854 |
Gross Unrealized Losses - Total | 9,387 | 10,538 |
U.S. Government Bonds [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ||
Less Than or Equal to Twelve Months | 70 | 236 |
Greater Than Twelve Months | 221 | 27 |
Fair Value - Total | 291 | 263 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ||
Less Than or Equal to Twelve Months | 5 | 25 |
Greater Than Twelve Months | 42 | 6 |
Gross Unrealized Losses - Total | 47 | 31 |
State And Municipal Bonds [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ||
Less Than or Equal to Twelve Months | 1,312 | 1,850 |
Greater Than Twelve Months | 1,607 | 227 |
Fair Value - Total | 2,919 | 2,077 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ||
Less Than or Equal to Twelve Months | 27 | 414 |
Greater Than Twelve Months | 319 | 69 |
Gross Unrealized Losses - Total | 346 | 483 |
Foreign Government Bonds [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ||
Less Than or Equal to Twelve Months | 71 | 122 |
Greater Than Twelve Months | 120 | 58 |
Fair Value - Total | 191 | 180 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ||
Less Than or Equal to Twelve Months | 6 | 18 |
Greater Than Twelve Months | 55 | 27 |
Gross Unrealized Losses - Total | 61 | 45 |
RMBS [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ||
Less Than or Equal to Twelve Months | 602 | 1,337 |
Greater Than Twelve Months | 1,082 | 191 |
Fair Value - Total | 1,684 | 1,528 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ||
Less Than or Equal to Twelve Months | 31 | 160 |
Greater Than Twelve Months | 179 | 43 |
Gross Unrealized Losses - Total | 210 | 203 |
CMBS [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ||
Less Than or Equal to Twelve Months | 608 | 1,224 |
Greater Than Twelve Months | 1,077 | 312 |
Fair Value - Total | 1,685 | 1,536 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ||
Less Than or Equal to Twelve Months | 18 | 156 |
Greater Than Twelve Months | 218 | 88 |
Gross Unrealized Losses - Total | 236 | 244 |
ABS [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ||
Less Than or Equal to Twelve Months | 2,375 | 6,712 |
Greater Than Twelve Months | 7,739 | 3,325 |
Fair Value - Total | 10,114 | 10,037 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ||
Less Than or Equal to Twelve Months | 67 | 551 |
Greater Than Twelve Months | 753 | 374 |
Gross Unrealized Losses - Total | 820 | 925 |
Hybrid And Redeemable Preferred Securities [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ||
Less Than or Equal to Twelve Months | 59 | 61 |
Greater Than Twelve Months | 116 | 98 |
Fair Value - Total | 175 | 159 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ||
Less Than or Equal to Twelve Months | 4 | 5 |
Greater Than Twelve Months | 14 | 25 |
Gross Unrealized Losses - Total | $ 18 | $ 30 |
Investments (Schedule Of Availa
Investments (Schedule Of Available-For-Sale Securities Whose Value Is Below Amortized Cost) (Details) $ in Millions | Sep. 30, 2023 USD ($) security | Dec. 31, 2022 USD ($) security |
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value - Nine months or greater, but less than twelve months | $ 24,603 | $ 69,198 |
Fair Value - Twelve months or greater | 59,051 | 11,105 |
Fair Value - Total | 83,654 | 80,303 |
Gross Unrealized Losses - Nine months or greater, but less than twelve months | 1,294 | 10,013 |
Gross Unrealized Losses - Twelve months or greater | 9,831 | 2,486 |
Gross Unrealized Losses - Total | $ 11,125 | $ 12,499 |
Number of Securities - Total | security | 8,537 | 8,106 |
Fair Value Decline, Greater Than 20% [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value - Less than six months | $ 10,143 | $ 10,895 |
Fair Value - Six months or greater, but less than nine months | 782 | 4,256 |
Fair Value - Nine months or greater, but less than twelve months | 183 | 362 |
Fair Value - Twelve months or greater | 5,240 | 2 |
Fair Value - Total | 16,348 | 15,515 |
Gross Unrealized Losses - Less than six months | 3,100 | 3,514 |
Gross Unrealized Losses - Six months or greater, but less than nine months | 282 | 2,150 |
Gross Unrealized Losses - Nine months or greater, but less than twelve months | 84 | 243 |
Gross Unrealized Losses - Twelve months or greater | 2,600 | |
Gross Unrealized Losses - Total | $ 6,066 | $ 5,907 |
Number of Securities - Less than six months | security | 1,344 | 1,489 |
Number of Securities - Six months or greater, but less than nine months | security | 172 | 640 |
Number of Securities - Nine months or greater, but less than twelve months | security | 25 | 73 |
Number of Securities - Twelve months or greater | security | 1,052 | 15 |
Number of Securities - Total | security | 2,593 | 2,217 |
Investments (Changes In Allowan
Investments (Changes In Allowance For Credit Losses Of AFS) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items] | ||||
Balance | $ 25 | $ 12 | $ 21 | $ 19 |
Additions for securities for which credit losses were not previously recognized | 1 | 3 | 21 | 5 |
Additions (reductions) for securities for which credit losses were previously recognized | 3 | (3) | 7 | |
Reductions for securities disposed | (1) | (1) | ||
Reductions for securities charged-off | (5) | (17) | (12) | |
Balance | 21 | 18 | 21 | 18 |
Accrued investment income on fixed maturity AFS securities | 1,200 | 1,100 | ||
Corporate Bonds [Member] | ||||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items] | ||||
Balance | 13 | 7 | 9 | 17 |
Additions for securities for which credit losses were not previously recognized | 1 | 21 | 2 | |
Additions (reductions) for securities for which credit losses were previously recognized | (3) | 1 | ||
Reductions for securities disposed | (1) | (1) | ||
Reductions for securities charged-off | (5) | (17) | (12) | |
Balance | 9 | 7 | 9 | 7 |
RMBS [Member] | ||||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items] | ||||
Balance | 6 | 3 | 7 | 1 |
Additions for securities for which credit losses were not previously recognized | 2 | 2 | ||
Additions (reductions) for securities for which credit losses were previously recognized | (1) | 2 | ||
Balance | 6 | 5 | 6 | 5 |
Other Securities [Member] | ||||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items] | ||||
Balance | 6 | 2 | 5 | 1 |
Additions for securities for which credit losses were not previously recognized | 1 | 1 | ||
Additions (reductions) for securities for which credit losses were previously recognized | 3 | 1 | 4 | |
Balance | $ 6 | $ 6 | $ 6 | $ 6 |
Investments (Composition Of Cur
Investments (Composition Of Current And Past Due Mortgage Loans On Real Estate) (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Mortgage Loans On Real Estate Aging [Abstract] | ||||||
Allowance for credit losses | $ (113) | $ (104) | $ (98) | $ (91) | $ (81) | $ (95) |
Unamortized premium (discount) | 33 | 27 | ||||
Mark-to-market gains (losses) | (26) | (27) | ||||
Total carrying value | 18,661 | 18,211 | ||||
Financial Asset Not Past Due [Member] | ||||||
Mortgage Loans On Real Estate Aging [Abstract] | ||||||
Carrying amount of mortgages | 18,686 | 18,228 | ||||
30 to 59 Days Past Due [Member] | ||||||
Mortgage Loans On Real Estate Aging [Abstract] | ||||||
Carrying amount of mortgages | 24 | 42 | ||||
60 to 89 Days Past Due [Member] | ||||||
Mortgage Loans On Real Estate Aging [Abstract] | ||||||
Carrying amount of mortgages | 13 | 6 | ||||
90 Or More Days Past Due [Member] | ||||||
Mortgage Loans On Real Estate Aging [Abstract] | ||||||
Carrying amount of mortgages | 44 | 33 | ||||
Commercial [Member] | ||||||
Mortgage Loans On Real Estate Aging [Abstract] | ||||||
Carrying amount of mortgages | 17,124 | 16,923 | ||||
Allowance for credit losses | (89) | (81) | (83) | (80) | (72) | (78) |
Unamortized premium (discount) | (7) | (9) | ||||
Mark-to-market gains (losses) | (27) | (27) | ||||
Total carrying value | 17,008 | 16,813 | ||||
Commercial [Member] | Financial Asset Not Past Due [Member] | ||||||
Mortgage Loans On Real Estate Aging [Abstract] | ||||||
Carrying amount of mortgages | 17,131 | 16,913 | ||||
Commercial [Member] | 30 to 59 Days Past Due [Member] | ||||||
Mortgage Loans On Real Estate Aging [Abstract] | ||||||
Carrying amount of mortgages | 19 | |||||
Residential [Member] | ||||||
Mortgage Loans On Real Estate Aging [Abstract] | ||||||
Carrying amount of mortgages | 1,676 | 1,413 | ||||
Allowance for credit losses | (24) | $ (23) | (15) | $ (11) | $ (9) | $ (17) |
Unamortized premium (discount) | 40 | 36 | ||||
Mark-to-market gains (losses) | 1 | |||||
Total carrying value | 1,653 | 1,398 | ||||
Residential [Member] | Financial Asset Not Past Due [Member] | ||||||
Mortgage Loans On Real Estate Aging [Abstract] | ||||||
Carrying amount of mortgages | 1,555 | 1,315 | ||||
Residential [Member] | 30 to 59 Days Past Due [Member] | ||||||
Mortgage Loans On Real Estate Aging [Abstract] | ||||||
Carrying amount of mortgages | 24 | 23 | ||||
Residential [Member] | 60 to 89 Days Past Due [Member] | ||||||
Mortgage Loans On Real Estate Aging [Abstract] | ||||||
Carrying amount of mortgages | 13 | 6 | ||||
Residential [Member] | 90 Or More Days Past Due [Member] | ||||||
Mortgage Loans On Real Estate Aging [Abstract] | ||||||
Carrying amount of mortgages | $ 44 | $ 33 |
Investments (Schedule Of Averag
Investments (Schedule Of Average Carrying Value Of Impaired Mortgage Loans On Real Estate) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Commercial [Member] | ||||
Information about impaired mortgage loans on real estate | ||||
Average carrying value for impaired mortgage loans on real estate | $ 34 | $ 13 | $ 25 | $ 16 |
Investments (Amortized Cost Of
Investments (Amortized Cost Of Mortgage Loans On Real Estate On Nonaccrual Status) (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual | $ 47 | $ 34 |
Commercial [Member] | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual with no ACL | ||
Nonaccrual | ||
Residential [Member] | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual | $ 47 | $ 34 |
Investments (Commercial Mortgag
Investments (Commercial Mortgage Loans By Year Of Origination) (Details) - Commercial [Member] $ in Millions | Sep. 30, 2023 USD ($) item | Dec. 31, 2022 USD ($) item |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Originated in current year | $ 982 | $ 1,876 |
Originated in prior year | 1,855 | 2,407 |
Originated in two years prior | 2,386 | 1,297 |
Originated in three years prior | 1,233 | 2,753 |
Originated in four years prior | 2,535 | 2,289 |
Originated in five years prior and prior | 8,133 | 6,301 |
Total | 17,124 | 16,923 |
Loan-to-value ratio, less than 65% [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Originated in current year | 934 | 1,769 |
Originated in prior year | 1,766 | 2,335 |
Originated in two years prior | 2,322 | 1,280 |
Originated in three years prior | 1,222 | 2,643 |
Originated in four years prior | 2,443 | 2,222 |
Originated in five years prior and prior | 7,980 | 6,170 |
Total | $ 16,667 | $ 16,419 |
Originated in current year | item | 1.87 | 2.06 |
Originated in prior year | item | 2.06 | 3.05 |
Originated in two years prior | item | 3.36 | 2.99 |
Originated in three years prior | item | 3.19 | 2.17 |
Originated in four years prior | item | 2.44 | 2.17 |
Originated in five years prior and prior | item | 2.42 | 2.44 |
Loan-to-value ratio, 65% to 75% [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Originated in current year | $ 48 | $ 105 |
Originated in prior year | 88 | 72 |
Originated in two years prior | 64 | 17 |
Originated in three years prior | 11 | 81 |
Originated in four years prior | 82 | 67 |
Originated in five years prior and prior | 152 | 131 |
Total | $ 445 | $ 473 |
Originated in current year | item | 1.42 | 1.50 |
Originated in prior year | item | 2.06 | 1.53 |
Originated in two years prior | item | 1.57 | 1.58 |
Originated in three years prior | item | 1.50 | 1.50 |
Originated in four years prior | item | 1.48 | 1.62 |
Originated in five years prior and prior | item | 1.59 | 1.75 |
Loan-to-value ratio, 75% to 100% [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Originated in current year | $ 2 | |
Originated in prior year | $ 1 | |
Originated in three years prior | 29 | |
Originated in four years prior | 10 | |
Originated in five years prior and prior | 1 | |
Total | $ 12 | $ 31 |
Originated in current year | item | 1.45 | |
Originated in prior year | item | 1.13 | |
Originated in three years prior | item | 1.58 | |
Originated in four years prior | item | 2.33 | |
Originated in five years prior and prior | item | 1.67 |
Investments (Residential Mortga
Investments (Residential Mortgage Loans By Year Of Origination) (Details) - Residential [Member] - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Originated in current year | $ 359 | $ 583 |
Originated in prior year | 569 | 533 |
Originated in two years prior | 491 | 93 |
Originated in three years prior | 84 | 137 |
Originated in four years prior | 115 | 67 |
Originated in five years prior and prior | 58 | |
Total | 1,676 | 1,413 |
Performing [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Originated in current year | 359 | 578 |
Originated in prior year | 552 | 527 |
Originated in two years prior | 477 | 90 |
Originated in three years prior | 83 | 119 |
Originated in four years prior | 103 | 65 |
Originated in five years prior and prior | 55 | |
Total | 1,629 | 1,379 |
Nonperforming [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Originated in current year | 5 | |
Originated in prior year | 17 | 6 |
Originated in two years prior | 14 | 3 |
Originated in three years prior | 1 | 18 |
Originated in four years prior | 12 | 2 |
Originated in five years prior and prior | 3 | |
Total | $ 47 | $ 34 |
Investments (Changes In Allow_2
Investments (Changes In Allowance For Credit Losses On Mortgage Loans On Real Estate) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Schedule of Investments [Line Items] | ||||
Balance as of beginning-of-year | $ 104 | $ 81 | $ 98 | $ 95 |
Additions (reductions) from provision for credit loss expense | 9 | 10 | 15 | (4) |
Additions from purchases of PCD mortgage loans on real estate | ||||
Balance as of end-of-year | 113 | 91 | 113 | 91 |
Financing Receivable, Credit Loss, Expense (Reversal) | 1 | 5 | 16 | 11 |
Accrued investment income excluded from credit losses | 54 | 50 | 54 | 50 |
Unfunded Loan Commitment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Financing Receivable, Credit Loss, Expense (Reversal) | (1) | 1 | (1) | 1 |
Commercial [Member] | ||||
Schedule of Investments [Line Items] | ||||
Balance as of beginning-of-year | 81 | 72 | 83 | 78 |
Additions (reductions) from provision for credit loss expense | 8 | 8 | 6 | 2 |
Additions from purchases of PCD mortgage loans on real estate | ||||
Balance as of end-of-year | 89 | 80 | 89 | 80 |
Residential [Member] | ||||
Schedule of Investments [Line Items] | ||||
Balance as of beginning-of-year | 23 | 9 | 15 | 17 |
Additions (reductions) from provision for credit loss expense | 1 | 2 | 9 | (6) |
Additions from purchases of PCD mortgage loans on real estate | ||||
Balance as of end-of-year | $ 24 | $ 11 | $ 24 | $ 11 |
Investments (Credit Loss Expens
Investments (Credit Loss Expense Incurred) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items] | ||||
Gross credit loss benefit (expense) | $ (1) | $ (5) | $ (16) | $ (11) |
Intent to sell impairments | (1,150) | (4,213) | ||
Intent to sell impairments, unrealized gain position | 212 | |||
Corporate Bonds [Member] | ||||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items] | ||||
Gross credit loss benefit (expense) | (1) | (16) | (2) | |
Intent to sell impairments | (1,057) | (3,805) | ||
RMBS [Member] | ||||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items] | ||||
Gross credit loss benefit (expense) | (2) | 1 | (4) | |
Intent to sell impairments | (19) | (74) | ||
ABS [Member] | ||||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items] | ||||
Gross credit loss benefit (expense) | $ (3) | (1) | $ (5) | |
Intent to sell impairments | (4) | (57) | ||
CMBS [Member] | ||||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items] | ||||
Intent to sell impairments | (7) | (60) | ||
State And Municipal Bonds [Member] | ||||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items] | ||||
Intent to sell impairments | (62) | (214) | ||
Hybrid And Redeemable Preferred Securities [Member] | ||||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items] | ||||
Intent to sell impairments | $ (1) | $ (3) |
Investments (Payables For Colla
Investments (Payables For Collateral On Investments) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | |
Carrying Value | ||
Collateral payable for derivative investments | $ 4,522 | $ 3,210 |
Securities pledged under securities lending agreements | 290 | 298 |
Investments pledged for Federal Home Loan Bank of Indianapolis ('FHLBI') | 2,920 | 3,130 |
Total payables for collateral on investments | 7,732 | 6,638 |
Fair Value | ||
Collateral payable for derivative investments | 4,522 | 3,210 |
Securities pledged under securities lending agreements | 280 | 287 |
Investments pledged for Federal Home Loan Bank of Indianapolis('FHLBI') | 3,860 | 3,925 |
Total payables for collateral on investments | $ 8,662 | $ 7,422 |
Percentage of the fair value of domestic securities obtained as collateral under securities lending agreements. | 102% | |
Percentage of the fair value of foreign securities obtained as collateral under securities lending agreements. | 105% | |
Maximum [Member] | ||
Fair Value | ||
Percentage of the fair value of FHLBI securities obtained as collateral under securities pledged for FHLBI for AFS Securities | 115% | |
Percentage of the fair value of FHLBI securities obtained as collateral under securities pledged for FHLBI for mortgage loan | 175% | |
Minimum [Member] | ||
Fair Value | ||
Percentage of the fair value of FHLBI securities obtained as collateral under securities pledged for FHLBI for AFS Securities | 105% | |
Percentage of the fair value of FHLBI securities obtained as collateral under securities pledged for FHLBI for mortgage loan | 155% |
Investments (Schedule Of Increa
Investments (Schedule Of Increase (Decrease) In Payables For Collateral On Investments) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Increase (decrease) in payables for collateral on investments | ||
Collateral payable for derivative investments | $ 1,312 | $ (2,140) |
Securities pledged under securities lending agreements | (8) | 59 |
Investments pledged for FHLBI | (210) | |
Total increase (decrease) in payables for collateral on investments | $ 1,094 | $ (2,081) |
Investments (Schedule of Securi
Investments (Schedule of Securities Pledged by Contractual Maturity) (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities Lending | $ 290 | $ 298 |
Corporate Bonds [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities Lending | 281 | 288 |
Equity Securities [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities Lending | 8 | 8 |
Foreign Government Bonds [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities Lending | 1 | 2 |
Overnight and Continuous [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities Lending | 290 | 298 |
Overnight and Continuous [Member] | Corporate Bonds [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities Lending | 281 | 288 |
Overnight and Continuous [Member] | Equity Securities [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities Lending | 8 | 8 |
Overnight and Continuous [Member] | Foreign Government Bonds [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities Lending | $ 1 | $ 2 |
Variable Interest Entities (Det
Variable Interest Entities (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Variable Interest Entity [Line Items] | ||
Carrying Amounts of our Investments in LPs and LLCs, As Recognized In Other Investments on our Consolidated Balance Sheets | $ 4,428 | $ 3,577 |
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 | $ 3,200 | $ 3,000 |
Derivative Instruments (Narrati
Derivative Instruments (Narrative) (Details) - USD ($) | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Credit Derivatives [Line Items] | |||
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | $ 59,000,000 | ||
Cash flow hedge, reclassified to earnings, net | 0 | $ 0 | |
Non-performance Risk Adjustment | 0 | ||
Exposure Associated With Collateralization Events | $ 0 | $ 0 | |
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 | Sep. 30, 2023 | Dec. 31, 2022 |
Outstanding derivative instruments with off-balance-sheet risks | ||
Notional Amounts | $ 380,999 | |
Interest Rate Contracts [Member] | ||
Outstanding derivative instruments with off-balance-sheet risks | ||
Notional Amounts | 90,214 | |
Foreign Currency Contracts [Member] | ||
Outstanding derivative instruments with off-balance-sheet risks | ||
Notional Amounts | 4,931 | |
Equity Market Contracts [Member] | ||
Outstanding derivative instruments with off-balance-sheet risks | ||
Notional Amounts | 285,520 | |
Commodity [Member] | ||
Outstanding derivative instruments with off-balance-sheet risks | ||
Notional Amounts | 27 | |
Credit Contracts [Member] | ||
Outstanding derivative instruments with off-balance-sheet risks | ||
Notional Amounts | 307 | |
Total Derivative Instruments [Member] | ||
Outstanding derivative instruments with off-balance-sheet risks | ||
Notional Amounts | 380,999 | $ 255,322 |
Asset Fair Value | 11,498 | 7,952 |
Liability Fair Value | 12,143 | 8,052 |
Derivative investments [Member] | Interest Rate Contracts [Member] | Non-Qualifying Hedges [Member] | ||
Outstanding derivative instruments with off-balance-sheet risks | ||
Notional Amounts | 89,067 | 105,977 |
Asset Fair Value | 1,003 | 709 |
Liability Fair Value | 1,398 | 935 |
Derivative investments [Member] | Foreign Currency Contracts [Member] | Non-Qualifying Hedges [Member] | ||
Outstanding derivative instruments with off-balance-sheet risks | ||
Notional Amounts | 353 | 395 |
Asset Fair Value | 24 | 27 |
Liability Fair Value | 1 | 2 |
Derivative investments [Member] | Equity Market Contracts [Member] | Non-Qualifying Hedges [Member] | ||
Outstanding derivative instruments with off-balance-sheet risks | ||
Notional Amounts | 285,520 | 142,653 |
Asset Fair Value | 8,194 | 5,135 |
Liability Fair Value | 3,366 | 2,035 |
Derivative investments [Member] | Commodity [Member] | Non-Qualifying Hedges [Member] | ||
Outstanding derivative instruments with off-balance-sheet risks | ||
Notional Amounts | 27 | 13 |
Asset Fair Value | 9 | 14 |
Liability Fair Value | 11 | 3 |
Derivative investments [Member] | Credit Contracts [Member] | Non-Qualifying Hedges [Member] | ||
Outstanding derivative instruments with off-balance-sheet risks | ||
Notional Amounts | 307 | |
Derivative investments [Member] | Cash Flow Hedges [Member] | Qualifying Hedges [Member] | ||
Outstanding derivative instruments with off-balance-sheet risks | ||
Notional Amounts | 5,241 | 5,760 |
Asset Fair Value | 550 | 647 |
Liability Fair Value | 178 | 250 |
Derivative investments [Member] | Cash Flow Hedges [Member] | Interest Rate Contracts [Member] | Qualifying Hedges [Member] | ||
Outstanding derivative instruments with off-balance-sheet risks | ||
Notional Amounts | 663 | 1,377 |
Asset Fair Value | 4 | |
Liability Fair Value | 145 | 232 |
Derivative investments [Member] | Cash Flow Hedges [Member] | Foreign Currency Contracts [Member] | Qualifying Hedges [Member] | ||
Outstanding derivative instruments with off-balance-sheet risks | ||
Notional Amounts | 4,578 | 4,383 |
Asset Fair Value | 550 | 643 |
Liability Fair Value | 33 | 18 |
Derivative investments [Member] | Fair Value Hedges [Member] | Interest Rate Contracts [Member] | Qualifying Hedges [Member] | ||
Outstanding derivative instruments with off-balance-sheet risks | ||
Notional Amounts | 484 | 524 |
Asset Fair Value | 15 | 2 |
Liability Fair Value | 15 | 44 |
Other Assets [Member] | LPR Ceded Derivative [Member] | Non-Qualifying Hedges [Member] | ||
Outstanding derivative instruments with off-balance-sheet risks | ||
Asset Fair Value | 184 | 212 |
Reinsurance Related Embedded Derivatives [Member] | Reinsurance Related [Member] | Non-Qualifying Hedges [Member] | ||
Outstanding derivative instruments with off-balance-sheet risks | ||
Asset Fair Value | 933 | 681 |
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 | 586 | 525 |
Liability Fair Value | $ 7,174 | $ 4,783 |
Derivative Instruments (Maturit
Derivative Instruments (Maturity Of The Notional Amounts Of Derivative Financial Instruments) (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Maturity of the notional amounts of derivative financial instruments | |
Remaining Life Less Than 1 Year | $ 221,483 |
Remaining Life - 1 - 5 Years | 91,927 |
Remaining Life - 6 - 10 Years | 31,400 |
Remaining Life - 11 - 30 Years | 22,901 |
Remaining Life - Over 30 Years | 13,288 |
Remaining Life - Total Years | 380,999 |
Interest Rate Contracts [Member] | |
Maturity of the notional amounts of derivative financial instruments | |
Remaining Life Less Than 1 Year | 27,214 |
Remaining Life - 1 - 5 Years | 16,713 |
Remaining Life - 6 - 10 Years | 22,487 |
Remaining Life - 11 - 30 Years | 20,800 |
Remaining Life - Over 30 Years | 3,000 |
Remaining Life - Total Years | $ 90,214 |
Derivative maturity date | Dec. 18, 2024 |
Foreign Currency Contracts [Member] | |
Maturity of the notional amounts of derivative financial instruments | |
Remaining Life Less Than 1 Year | $ 252 |
Remaining Life - 1 - 5 Years | 953 |
Remaining Life - 6 - 10 Years | 1,592 |
Remaining Life - 11 - 30 Years | 2,092 |
Remaining Life - Over 30 Years | 42 |
Remaining Life - Total Years | $ 4,931 |
Derivative maturity date | Jun. 16, 2061 |
Equity Market Contracts [Member] | |
Maturity of the notional amounts of derivative financial instruments | |
Remaining Life Less Than 1 Year | $ 193,990 |
Remaining Life - 1 - 5 Years | 74,261 |
Remaining Life - 6 - 10 Years | 7,014 |
Remaining Life - 11 - 30 Years | 9 |
Remaining Life - Over 30 Years | 10,246 |
Remaining Life - Total Years | 285,520 |
Commodity [Member] | |
Maturity of the notional amounts of derivative financial instruments | |
Remaining Life Less Than 1 Year | 27 |
Remaining Life - Total Years | 27 |
Credit Contracts [Member] | |
Maturity of the notional amounts of derivative financial instruments | |
Remaining Life - 6 - 10 Years | 307 |
Remaining Life - Total Years | $ 307 |
Derivative Instruments (Cumulat
Derivative Instruments (Cumulative Basis Adjustments For Fair Value Hedges) (Details) - Fixed Maturity AFS Securities [Member] - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Derivatives, Fair Value [Line Items] | ||
Amortized cost of the hedged Assets / (Liabilities) | $ 498 | $ 587 |
Cumulative fair value hedging adjustments included in the amortized cost of the hedged Assets / (Liabilities) | $ 44 |
Derivative Instruments (Change
Derivative Instruments (Change In Unrealized Gain On Derivative Instruments In Accumulated OCI) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Change in our unrealized gain on derivative instruments in accumulated OCI | ||||
Balance as of beginning-of-year | $ (5,713) | |||
Income tax benefit (expense) | $ (37) | $ 488 | 564 | $ 500 |
Balance as of end-of-year | (5,110) | (5,110) | ||
Unrealized Gain (Loss) on Derivative Instruments [Member] | ||||
Change in our unrealized gain on derivative instruments in accumulated OCI | ||||
Balance as of beginning-of-year | 301 | 258 | ||
Change in foreign currency exchange rate adjustment | 30 | 623 | ||
Income tax benefit (expense) | (9) | (87) | ||
Income tax benefit (expense) | (10) | (16) | ||
Balance as of end-of-year | $ 296 | $ 518 | 296 | 518 |
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 | 102 | (392) | ||
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 | (92) | 178 | ||
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) | 42 | 48 | ||
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) | $ 4 | $ 29 |
Derivative Instruments (Effects
Derivative Instruments (Effects Of Qualifying And Non-Qualifying Hedges) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
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 | $ (867) | $ 33 | $ (4,513) | $ 541 |
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 | 1,466 | 1,241 | 4,351 | 3,931 |
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 | 1,895 | 2,094 | 5,766 | 6,118 |
Interest Rate Contracts [Member] | Realized Gain (Loss) [Member] | Non-Qualifying Hedges [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Non-qualifying hedges gain (loss) | (604) | (552) | (592) | (1,998) |
Foreign Currency Contracts [Member] | Realized Gain (Loss) [Member] | Non-Qualifying Hedges [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Non-qualifying hedges gain (loss) | 4 | (2) | 6 | |
Equity Market Contracts [Member] | Realized Gain (Loss) [Member] | Non-Qualifying Hedges [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Non-qualifying hedges gain (loss) | 163 | (188) | 913 | (2,100) |
Commodity [Member] | Realized Gain (Loss) [Member] | Non-Qualifying Hedges [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Non-qualifying hedges gain (loss) | (1) | (6) | 10 | 4 |
Credit Contracts [Member] | Realized Gain (Loss) [Member] | Non-Qualifying Hedges [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Non-qualifying hedges gain (loss) | (2) | (2) | (2) | |
LPR Ceded Derivative [Member] | Benefits Expense [Member] | Non-Qualifying Hedges [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Non-qualifying hedges gain (loss) | 18 | 24 | 28 | 127 |
Reinsurance Related [Member] | Realized Gain (Loss) [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Non-qualifying hedges gain (loss) | 243 | 382 | 252 | 1,361 |
Indexed Annuity And IUL Contracts [Member] | Realized Gain (Loss) [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Non-qualifying hedges gain (loss) | 572 | 347 | (1,706) | 3,030 |
Fair Value Hedges [Member] | Interest Rate Contracts [Member] | Net Investment Income [Member] | Qualifying Hedges [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Hedged items | (41) | (42) | (44) | (164) |
Derivatives designated as hedging instruments | 41 | 42 | 44 | 164 |
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 | 25 | 4 | 29 |
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 | $ 14 | $ 19 | $ 42 | $ 48 |
Derivative Instruments (Schedul
Derivative Instruments (Schedule Of Collateral Amounts With Rights To Reclaim Or Obligation To Return Cash) (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Credit Derivatives [Line Items] | ||
Collateral Posted by Counter-Party (Held by LNL) | $ 4,502 | $ 3,200 |
Collateral Posted by LNL (Held by Counter-Party) | (470) | (157) |
AA- [Member] | ||
Credit Derivatives [Line Items] | ||
Collateral Posted by Counter-Party (Held by LNL) | 1,061 | 383 |
Collateral Posted by LNL (Held by Counter-Party) | (42) | (6) |
A+ [Member] | ||
Credit Derivatives [Line Items] | ||
Collateral Posted by Counter-Party (Held by LNL) | 3,326 | 1,718 |
Collateral Posted by LNL (Held by Counter-Party) | (379) | (151) |
A [Member] | ||
Credit Derivatives [Line Items] | ||
Collateral Posted by Counter-Party (Held by LNL) | 57 | $ 1,099 |
Collateral Posted by LNL (Held by Counter-Party) | (49) | |
A- [Member] | ||
Credit Derivatives [Line Items] | ||
Collateral Posted by Counter-Party (Held by LNL) | $ 58 |
Derivative Instruments (Sched_2
Derivative Instruments (Schedule Of Offsetting Assets And Liabilities) (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Financial Assets | ||
Derivative Instruments, Gross amount of recognized assets | $ 8,553,000,000 | $ 6,483,000,000 |
Derivative Instruments, Gross amounts offset | (3,099,000,000) | (2,964,000,000) |
Derivative Instruments, Net amount of assets | 5,454,000,000 | 3,519,000,000 |
Derivative Instruments, Cash collateral | (4,502,000,000) | (3,200,000,000) |
Derivative Instruments, Non-cash collateral | (952,000,000) | (319,000,000) |
Derivative Instruments, Net amount | ||
Embedded Derivative Instruments, Gross amount of recognized assets | 1,519,000,000 | 1,206,000,000 |
Embedded Derivative Instruments, Gross amounts offset | ||
Embedded Derivative Instruments, Net amount of assets | 1,519,000,000 | 1,206,000,000 |
Embedded Derivative Instruments, Cash collateral | ||
Embedded Derivative Instruments, Non-cash collateral | ||
Embedded Derivative Instruments, Net amount | 1,519,000,000 | 1,206,000,000 |
Total, Gross amount of recognized assets | 10,072,000,000 | 7,689,000,000 |
Total, Gross amounts offset | (3,099,000,000) | (2,964,000,000) |
Total, Net amount of assets | 6,973,000,000 | 4,725,000,000 |
Total, Cash collateral | (4,502,000,000) | (3,200,000,000) |
Total, Non-cash collateral | (952,000,000) | (319,000,000) |
Total, Net amount | 1,519,000,000 | 1,206,000,000 |
Financial Liabilities | ||
Derivative Instruments, Gross amount of recognized liabilities | 1,870,000,000 | 304,000,000 |
Derivative Instruments, Gross amounts offset | (1,242,000,000) | (50,000,000) |
Derivative Instruments, Net amount of liabilities | 628,000,000 | 254,000,000 |
Derivative Instruments, Cash collateral | (470,000,000) | (157,000,000) |
Derivative Instruments, Non-cash collateral | (158,000,000) | (46,000,000) |
Derivative Instruments, Net amount | 51,000,000 | |
Embedded Derivative Instruments, Gross amount of recognized liabilities | 7,174,000,000 | 4,783,000,000 |
Embedded Derivative Instruments, Gross amounts offset | ||
Embedded Derivative Instruments, Net amount of liabilities | 7,174,000,000 | 4,783,000,000 |
Embedded Derivative Instruments, Cash collateral | ||
Embedded Derivative Instruments, Non-cash collateral | ||
Embedded Derivative Instruments, Net amount | 7,174,000,000 | 4,783,000,000 |
Total, Gross amount of recognized liabilities | 9,044,000,000 | 5,087,000,000 |
Total, Gross amounts offset | (1,242,000,000) | (50,000,000) |
Total, Net amount of liabilities | 7,802,000,000 | 5,037,000,000 |
Total, Cash collateral | (470,000,000) | (157,000,000) |
Total, Non-cash collateral | (158,000,000) | (46,000,000) |
Total, Net amount | 7,174,000,000 | 4,834,000,000 |
Excess Non Cash Collateral Received | 826,000,000 | 1,100,000,000 |
Excess Non Cash Collateral Pledged | $ 320,000,000 | $ 0 |
DAC, VOBA, DSI, and DFEL (Narra
DAC, VOBA, DSI, and DFEL (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
DAC, VOBA, DSI and DFEL [Abstract] | ||||
Deferred Policy Acquisition Costs, Amortization Expense | $ 248 | $ 242 | $ 742 | $ 725 |
Present Value of Future Insurance Profits, Amortization Expense | 13 | 14 | 40 | 44 |
Deferred Sales Inducement Cost, Amortization Expense | 5 | 6 | 16 | 17 |
Present Value of Future Insurance Profits, Impairment Loss | 0 | 0 | 0 | 0 |
Amortization | $ 74 | $ 63 | $ 213 | $ 192 |
DAC, VOBA, DSI, and DFEL (Recon
DAC, VOBA, DSI, and DFEL (Reconciliation of DAC, VOBA and DSI) (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Changes in DAC [Roll Forward] | ||
Deferred acquisition costs, value of business acquired and deferred sales inducements | $ 12,363 | $ 12,263 |
UL and Other [Member] | ||
Changes in DAC [Roll Forward] | ||
Deferred acquisition costs, value of business acquired and deferred sales inducements | 6,099 | 6,002 |
Traditional Life [Member] | ||
Changes in DAC [Roll Forward] | ||
Deferred acquisition costs, value of business acquired and deferred sales inducements | 1,372 | 1,336 |
Fixed Annuities [Member] | ||
Changes in DAC [Roll Forward] | ||
Deferred acquisition costs, value of business acquired and deferred sales inducements | 454 | 479 |
Retirement Plan Services Segment [Member] | ||
Changes in DAC [Roll Forward] | ||
Deferred acquisition costs, value of business acquired and deferred sales inducements | 264 | 258 |
Group Protection Segment [Member] | ||
Changes in DAC [Roll Forward] | ||
Deferred acquisition costs, value of business acquired and deferred sales inducements | 147 | 141 |
Variable Annuities [Member] | ||
Changes in DAC [Roll Forward] | ||
Deferred acquisition costs, value of business acquired and deferred sales inducements | $ 4,027 | $ 4,047 |
DAC, VOBA, DSI, and DFEL (Rec_2
DAC, VOBA, DSI, and DFEL (Reconciliation of DFEL) (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2012 |
Changes in DAC [Roll Forward] | ||||
DFEL | $ 5,646 | $ 5,045 | ||
UL and Other [Member] | ||||
Changes in DAC [Roll Forward] | ||||
DFEL | 5,343 | 4,735 | $ 3,902 | $ 4,735 |
Variable Annuities [Member] | ||||
Changes in DAC [Roll Forward] | ||||
DFEL | $ 303 | $ 310 | $ 318 | $ 310 |
DAC, VOBA, DSI, and DFEL (DAC)
DAC, VOBA, DSI, and DFEL (DAC) (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
UL and Other [Member] | ||
Changes in DAC [Roll Forward] | ||
Balance as of beginning-of-year | $ 5,518 | $ 5,269 |
Deferrals | 346 | 537 |
Amortization, net of interest: | ||
Amortization, excluding unlocking, net of interest | (217) | (288) |
Balance as of end-of-year | 5,647 | 5,518 |
Fixed Annuities [Member] | ||
Changes in DAC [Roll Forward] | ||
Balance as of beginning-of-year | 439 | 448 |
Deferrals | 31 | 60 |
Amortization, net of interest: | ||
Amortization, excluding unlocking, net of interest | (51) | (69) |
Balance as of end-of-year | 419 | 439 |
Retirement Plan Services Segment [Member] | ||
Changes in DAC [Roll Forward] | ||
Balance as of beginning-of-year | 241 | 239 |
Deferrals | 15 | 21 |
Amortization, net of interest: | ||
Amortization, excluding unlocking, net of interest | (14) | (19) |
Balance as of end-of-year | 242 | 241 |
Group Protection Segment [Member] | ||
Changes in DAC [Roll Forward] | ||
Balance as of beginning-of-year | 141 | 140 |
Deferrals | 79 | 98 |
Amortization, net of interest: | ||
Amortization, excluding unlocking, net of interest | (73) | (97) |
Balance as of end-of-year | 147 | 141 |
Variable Annuities [Member] | ||
Changes in DAC [Roll Forward] | ||
Balance as of beginning-of-year | 3,880 | 3,860 |
Deferrals | 269 | 390 |
Amortization, net of interest: | ||
Amortization, excluding unlocking, net of interest | (281) | (370) |
Balance as of end-of-year | 3,868 | 3,880 |
Variable Annuities [Member] | Traditional Life [Member] | ||
Changes in DAC [Roll Forward] | ||
Balance as of beginning-of-year | 1,286 | 1,146 |
Deferrals | 148 | 266 |
Amortization, net of interest: | ||
Amortization, excluding unlocking, net of interest | (106) | (126) |
Balance as of end-of-year | $ 1,328 | $ 1,286 |
DAC, VOBA, DSI, and DFEL (VOBA)
DAC, VOBA, DSI, and DFEL (VOBA) (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
UL and Other [Member] | ||
Changes in VOBA [Roll Forward] | ||
Balance as of beginning-of-year | $ 454 | $ 499 |
Deferrals | 1 | 2 |
Amortization: | ||
Amortization, excluding unlocking | (32) | (47) |
Balance as of end-of-year | 423 | 454 |
Traditional Life [Member] | ||
Changes in VOBA [Roll Forward] | ||
Balance as of beginning-of-year | 50 | 59 |
Amortization: | ||
Amortization, excluding unlocking | (6) | (9) |
Balance as of end-of-year | 44 | 50 |
Fixed Annuities [Member] | ||
Changes in VOBA [Roll Forward] | ||
Balance as of beginning-of-year | 17 | 20 |
Amortization: | ||
Amortization, excluding unlocking | (2) | (3) |
Balance as of end-of-year | $ 15 | $ 17 |
DAC, VOBA, DSI, and DFEL (DSI)
DAC, VOBA, DSI, and DFEL (DSI) (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
UL and Other [Member] | ||
Changes in DSI [Roll Forward] | ||
Balance as of beginning-of-year | $ 30 | $ 31 |
Deferrals | 1 | 1 |
Amortization, net of interest: | ||
Amortization, excluding unlocking, net of interest | (2) | (2) |
Balance as of end-of-year | 29 | 30 |
Fixed Annuities [Member] | ||
Changes in DSI [Roll Forward] | ||
Balance as of beginning-of-year | 23 | 27 |
Amortization, net of interest: | ||
Amortization, excluding unlocking, net of interest | (3) | (4) |
Balance as of end-of-year | 20 | 23 |
Retirement Plan Services Segment [Member] | ||
Changes in DSI [Roll Forward] | ||
Balance as of beginning-of-year | 17 | 14 |
Deferrals | 5 | 4 |
Amortization, net of interest: | ||
Amortization, excluding unlocking, net of interest | (1) | |
Balance as of end-of-year | 22 | 17 |
Variable Annuities [Member] | ||
Changes in DSI [Roll Forward] | ||
Balance as of beginning-of-year | 167 | 181 |
Deferrals | 3 | 2 |
Amortization, net of interest: | ||
Amortization, excluding unlocking, net of interest | (11) | (16) |
Balance as of end-of-year | $ 159 | $ 167 |
DAC, VOBA, DSI, and DFEL (DFEL)
DAC, VOBA, DSI, and DFEL (DFEL) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2012 | |
Changes in DFEL [Abstract] | |||||
Balance as of beginning-of-year | $ 5,045 | ||||
Amortization | $ 74 | $ 63 | 213 | $ 192 | |
Balance as of end-of-year | 5,646 | 5,646 | |||
UL and Other [Member] | |||||
Changes in DFEL [Abstract] | |||||
Balance as of beginning-of-year | 4,735 | 3,902 | |||
Deferrals | 799 | $ 1,060 | |||
Amortization | (191) | (227) | |||
Balance as of end-of-year | 5,343 | 5,343 | 4,735 | ||
Variable Annuities [Member] | |||||
Changes in DFEL [Abstract] | |||||
Balance as of beginning-of-year | 310 | $ 318 | |||
Deferrals | 15 | 22 | |||
Amortization | (22) | (30) | |||
Balance as of end-of-year | $ 303 | $ 303 | $ 310 |
Reinsurance (Narrative) (Detail
Reinsurance (Narrative) (Details) - USD ($) $ in Millions | Sep. 30, 2023 | May 02, 2023 | Dec. 31, 2022 |
Ceded Credit Risk [Line Items] | |||
Reinsurance, ACL | $ 114 | $ 315 | |
Fortitude Re [Member] | |||
Ceded Credit Risk [Line Items] | |||
Ceded Premiums Payable | $ 28,000 |
Goodwill (Narrative) (Details)
Goodwill (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Term for new business cash flows | 10 years | ||
Impairment of intangibles | $ 634 | $ 634 | |
Life Insurance Segment [Member] | |||
Impairment of intangibles | $ 634 | $ 634 |
Goodwill (Changes In Carrying A
Goodwill (Changes In Carrying Amount Of Goodwill, By Reportable Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2022 | Sep. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill [Roll Forward] | |||||
Goodwill Gross | $ 3,930 | $ 3,930 | |||
Accumulated impairment as of beginning-of-year | (2,786) | (2,152) | |||
Impairment | $ (634) | $ (634) | |||
Net goodwill as of end-of-year | 1,144 | 1,144 | $ 1,144 | 1,144 | 1,778 |
Annuities Segment [Member] | |||||
Goodwill [Roll Forward] | |||||
Goodwill Gross | 1,040 | 1,040 | |||
Accumulated impairment as of beginning-of-year | (600) | (600) | |||
Net goodwill as of end-of-year | 440 | 440 | 440 | 440 | 440 |
Retirement Plan Services Segment [Member] | |||||
Goodwill [Roll Forward] | |||||
Goodwill Gross | 20 | 20 | |||
Net goodwill as of end-of-year | 20 | 20 | 20 | 20 | 20 |
Life Insurance Segment [Member] | |||||
Goodwill [Roll Forward] | |||||
Goodwill Gross | 2,186 | 2,186 | |||
Accumulated impairment as of beginning-of-year | (2,186) | (1,552) | |||
Impairment | (634) | (634) | |||
Net goodwill as of end-of-year | 634 | ||||
Group Protection Segment [Member] | |||||
Goodwill [Roll Forward] | |||||
Goodwill Gross | 684 | 684 | |||
Net goodwill as of end-of-year | $ 684 | $ 684 | $ 684 | $ 684 | $ 684 |
MRBs (Reconciles of MRBs Assets
MRBs (Reconciles of MRBs Assets and Liabilities) (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Market Risk Benefit [Line Items] | |||
Market risk benefit assets | $ 4,108 | $ 2,807 | |
Market risk benefit liabilities | 1,385 | 2,078 | |
Net (Asset) Liability | (2,723) | (729) | |
Fixed Annuities [Member] | |||
Market Risk Benefit [Line Items] | |||
Market risk benefit assets | 105 | 117 | |
Market risk benefit liabilities | 88 | 72 | |
Net (Asset) Liability | (17) | (45) | $ 114 |
Retirement Plan Services Segment [Member] | |||
Market Risk Benefit [Line Items] | |||
Market risk benefit assets | 37 | 24 | |
Market risk benefit liabilities | 4 | 2 | |
Net (Asset) Liability | (33) | (22) | (1) |
Variable Annuities [Member] | |||
Market Risk Benefit [Line Items] | |||
Market risk benefit assets | 3,966 | 2,666 | |
Market risk benefit liabilities | 1,293 | 2,004 | |
Net (Asset) Liability | $ (2,673) | $ (662) | $ 2,398 |
MRBs (Summary of Balances of Ch
MRBs (Summary of Balances of Changes in Net MRB (Assets) Liabilities) (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Market Risk Benefit [Line Items] | ||
Balance as of Beginning-of-year | $ (729) | |
Balance as of ending-of-year | (2,723) | $ (729) |
Fixed Annuities [Member] | ||
Market Risk Benefit [Line Items] | ||
Balance as of Beginning-of-year | (45) | 114 |
Less: Effect of cumulative changes in non-performance risk | (40) | (44) |
Balance as of beginning-of-year, before the effect of changes in non-performance risk | (5) | 158 |
Attributed fees collected | 23 | 32 |
Effect of changes in interest rates | (66) | (232) |
Effect of changes in equity markets | (5) | 12 |
Effect of changes in equity index volatility | 6 | 14 |
In-force updates and other changes in MRBs | 4 | 10 |
Effect of changes in future expected policyholder behavior | 70 | 1 |
Effect of changes in other future expected assumptions | 15 | |
Balance as of end-of-year, before the effect of changes in non-performance risk | 42 | (5) |
Effect of changes in non-performance risk | (59) | (40) |
Balance as of ending-of-year | (17) | (45) |
Balance as of end-of-year, net of reinsurance | $ (17) | $ (45) |
Weighted-average age of policyholder (years) | 68 years | 68 years |
Market Risk Benefit, Net Amount at Risk | $ 188 | $ 171 |
Retirement Plan Services Segment [Member] | ||
Market Risk Benefit [Line Items] | ||
Balance as of Beginning-of-year | (22) | (1) |
Less: Effect of cumulative changes in non-performance risk | (2) | (13) |
Balance as of beginning-of-year, before the effect of changes in non-performance risk | (20) | 12 |
Issuances | (3) | |
Attributed fees collected | 4 | 6 |
Effect of changes in interest rates | (7) | (55) |
Effect of changes in equity markets | (6) | 18 |
Effect of changes in equity index volatility | (3) | (1) |
In-force updates and other changes in MRBs | 3 | |
Effect of changes in other future expected assumptions | (2) | |
Balance as of end-of-year, before the effect of changes in non-performance risk | (34) | (20) |
Effect of changes in non-performance risk | 1 | (2) |
Balance as of ending-of-year | (33) | (22) |
Less: ceded MRB assets (liabilities) | (6) | |
Balance as of end-of-year, net of reinsurance | $ (27) | $ (22) |
Weighted-average age of policyholder (years) | 63 years | 63 years |
Market Risk Benefit, Net Amount at Risk | $ 9 | $ 15 |
Variable Annuities [Member] | ||
Market Risk Benefit [Line Items] | ||
Balance as of Beginning-of-year | (662) | 2,398 |
Less: Effect of cumulative changes in non-performance risk | (2,173) | (2,425) |
Balance as of beginning-of-year, before the effect of changes in non-performance risk | 1,511 | 4,823 |
Issuances | 3 | 12 |
Attributed fees collected | 1,127 | 1,571 |
Benefit payments | (49) | (63) |
Effect of changes in interest rates | (2,347) | (9,346) |
Effect of changes in equity markets | (1,430) | 4,293 |
Effect of changes in equity index volatility | (358) | (225) |
In-force updates and other changes in MRBs | 182 | 661 |
Effect of changes in future expected policyholder behavior | (33) | (158) |
Effect of changes in other future expected assumptions | (66) | (57) |
Balance as of end-of-year, before the effect of changes in non-performance risk | (1,460) | 1,511 |
Effect of changes in non-performance risk | (1,213) | (2,173) |
Balance as of ending-of-year | (2,673) | (662) |
Less: ceded MRB assets (liabilities) | (1,457) | 294 |
Balance as of end-of-year, net of reinsurance | $ (1,216) | $ (956) |
Weighted-average age of policyholder (years) | 72 years | 71 years |
Market Risk Benefit, Net Amount at Risk | $ 6,235 | $ 7,974 |
Separate Accounts (Schedule of
Separate Accounts (Schedule of Fair Value of Separate Account Assets) (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Fair Value, Separate Account Investment [Line Items] | ||
Separate account assets | $ 145,810 | $ 143,536 |
Separate Account, Mutual Funds And Collective Investment Trusts [Member] | ||
Fair Value, Separate Account Investment [Line Items] | ||
Separate account assets | 145,178 | 142,892 |
Separate Account Exchange-traded Funds [Member] | ||
Fair Value, Separate Account Investment [Line Items] | ||
Separate account assets | 269 | 258 |
Separate Account, Fixed maturity AFS securities [Member] | ||
Fair Value, Separate Account Investment [Line Items] | ||
Separate account assets | 161 | 169 |
Separate Account, Cash and Invested Cash [Member] | ||
Fair Value, Separate Account Investment [Line Items] | ||
Separate account assets | 70 | 98 |
Separate Account, Other Investments [Member] | ||
Fair Value, Separate Account Investment [Line Items] | ||
Separate account assets | $ 132 | $ 119 |
Separate Accounts (Schedule o_2
Separate Accounts (Schedule of Reconciliation of Separate Account Liabilities) (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value, Separate Account Investment [Line Items] | |||
Separate account liabilities | $ 145,810 | $ 143,536 | |
Reinsurance Agreement [Member] | |||
Fair Value, Separate Account Investment [Line Items] | |||
Separate account liabilities | 42 | 42 | |
UL and Other [Member] | |||
Fair Value, Separate Account Investment [Line Items] | |||
Separate account liabilities | 22,642 | 20,920 | $ 24,785 |
Other Operations [Member] | |||
Fair Value, Separate Account Investment [Line Items] | |||
Separate account liabilities | 48 | 47 | |
Variable Annuities [Member] | |||
Fair Value, Separate Account Investment [Line Items] | |||
Separate account liabilities | 105,192 | 105,573 | 136,665 |
Retirement Plan Services Segment [Member] | |||
Fair Value, Separate Account Investment [Line Items] | |||
Separate account liabilities | $ 17,928 | $ 16,996 | $ 21,068 |
Separate Accounts (Summary of B
Separate Accounts (Summary of Balances and changes in Separate Account Liabilities) (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Separate Account, Liability [Line Items] | ||
Balance as of beginning-of-year | $ 143,536 | |
Balance as of end-of-period | 145,810 | $ 143,536 |
UL and Other [Member] | ||
Separate Account, Liability [Line Items] | ||
Balance as of beginning-of-year | 20,920 | 24,785 |
Gross Deposit | 1,178 | 1,900 |
Withdrawal | (227) | (454) |
Policyholder assessments | (714) | (938) |
Change in market performance | 1,573 | (4,371) |
Net transfers from (to) general account | (88) | (2) |
Balance as of end-of-period | 22,642 | 20,920 |
Cash surrender value | 20,324 | 18,666 |
Variable Annuities [Member] | ||
Separate Account, Liability [Line Items] | ||
Balance as of beginning-of-year | 105,573 | 136,665 |
Gross Deposit | 2,137 | 3,371 |
Withdrawal | (7,402) | (9,238) |
Policyholder assessments | (1,883) | (2,603) |
Change in market performance | 6,320 | (23,194) |
Net transfers from (to) general account | 447 | 572 |
Balance as of end-of-period | 105,192 | 105,573 |
Cash surrender value | 103,729 | 103,987 |
Retirement Plan Services Segment [Member] | ||
Separate Account, Liability [Line Items] | ||
Balance as of beginning-of-year | 16,996 | 21,068 |
Gross Deposit | 1,576 | 2,378 |
Withdrawal | (1,795) | (2,378) |
Policyholder assessments | (121) | (164) |
Change in market performance | 1,316 | (3,710) |
Net transfers from (to) general account | (44) | (198) |
Balance as of end-of-period | 17,928 | 16,996 |
Cash surrender value | $ 17,914 | $ 16,982 |
Policyholder Account Balances_2
Policyholder Account Balances (Schedule of Policyholder Account Balances) (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Policyholder Account Balance [Line Items] | |||
Policyholder Funds | $ 116,777 | $ 113,972 | |
Variable Annuities [Member] | |||
Policyholder Account Balance [Line Items] | |||
Policyholder Funds | 26,772 | 22,184 | $ 19,148 |
Reinsurance Agreement [Member] | |||
Policyholder Account Balance [Line Items] | |||
Policyholder Funds | $ 5,100 | $ 5,700 |
Policyholder Account Balances_3
Policyholder Account Balances (Summary of Balances and Changes in Policyholder Account Balances) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Policyholder Account Balance [Line Items] | |||||
Balance as of beginning-of-year | $ 113,972 | ||||
Interest credited | $ 827 | $ 722 | 2,412 | $ 2,121 | |
Balance as of end-of-year | 116,777 | 116,777 | $ 113,972 | ||
UL and Other [Member] | |||||
Policyholder Account Balance [Line Items] | |||||
Balance as of beginning-of-year | 37,258 | 37,719 | 37,719 | ||
Gross deposits | 2,737 | 3,905 | |||
Withdrawals | (1,077) | (1,215) | |||
Policyholder assessments | (3,337) | (4,446) | |||
Net transfers from (to) separate account | 90 | 2 | |||
Interest credited | 1,101 | 1,476 | |||
Change in fair value of embedded derivative instruments | 38 | (183) | |||
Balance as of end-of-year | $ 36,810 | $ 36,810 | $ 37,258 | ||
Weighted-average crediting rate | 4% | 4% | 3.90% | ||
Net Amount at Risk | $ 301,876 | $ 301,876 | $ 302,481 | ||
Cash surrender value | 32,685 | 32,685 | 33,130 | ||
Variable Annuities [Member] | |||||
Policyholder Account Balance [Line Items] | |||||
Balance as of beginning-of-year | 22,184 | 19,148 | 19,148 | ||
Gross deposits | 3,626 | 5,178 | |||
Withdrawals | (508) | (417) | |||
Policyholder assessments | (1) | (2) | |||
Net transfers from (to) separate account | (311) | (492) | |||
Interest credited | 391 | 287 | |||
Change in fair value of embedded derivative instruments | 1,391 | (1,518) | |||
Balance as of end-of-year | $ 26,772 | $ 26,772 | $ 22,184 | ||
Weighted-average crediting rate | 2.10% | 2.10% | 1.40% | ||
Net Amount at Risk | $ 6,235 | $ 6,235 | $ 7,974 | ||
Cash surrender value | 25,629 | 25,629 | 21,147 | ||
Fixed Annuities [Member] | |||||
Policyholder Account Balance [Line Items] | |||||
Balance as of beginning-of-year | 23,338 | 22,522 | 22,522 | ||
Gross deposits | 2,698 | 3,284 | |||
Withdrawals | (2,861) | (2,511) | |||
Policyholder assessments | (41) | (51) | |||
Interest credited | 469 | 532 | |||
Change in fair value of embedded derivative instruments | 52 | (438) | |||
Balance as of end-of-year | $ 23,655 | $ 23,655 | $ 23,338 | ||
Weighted-average crediting rate | 2.60% | 2.60% | 2.40% | ||
Net Amount at Risk | $ 188 | $ 188 | $ 171 | ||
Cash surrender value | 22,753 | 22,753 | 22,502 | ||
Retirement Plan Services Segment [Member] | |||||
Policyholder Account Balance [Line Items] | |||||
Balance as of beginning-of-year | 25,138 | $ 23,579 | 23,579 | ||
Gross deposits | 2,026 | 4,012 | |||
Withdrawals | (3,262) | (3,579) | |||
Policyholder assessments | (10) | (13) | |||
Net transfers from (to) separate account | (297) | 510 | |||
Interest credited | 504 | 629 | |||
Balance as of end-of-year | $ 24,099 | $ 24,099 | $ 25,138 | ||
Weighted-average crediting rate | 2.70% | 2.70% | 2.60% | ||
Net Amount at Risk | $ 9 | $ 9 | $ 15 | ||
Cash surrender value | 24,094 | 24,094 | 25,133 | ||
Other [Member] | |||||
Policyholder Account Balance [Line Items] | |||||
Balance as of beginning-of-year | 6,054 | ||||
Balance as of end-of-year | $ 5,441 | $ 5,441 | $ 6,054 |
Policyholder Account Balances_4
Policyholder Account Balances (Summary of Policyholder Account Balances by Ranges) (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Policyholder Account Balance [Line Items] | |||
Policyholder Funds | $ 116,777 | $ 113,972 | |
UL and Other [Member] | |||
Policyholder Account Balance [Line Items] | |||
Policyholder Funds | 36,810 | 37,258 | $ 37,719 |
UL and Other [Member] | Guaranteed Minimum Crediting Rate [Member] | |||
Policyholder Account Balance [Line Items] | |||
Policyholder Funds | 27,003 | 27,776 | |
UL and Other [Member] | 1-50 Basis Points Above [Member] | |||
Policyholder Account Balance [Line Items] | |||
Policyholder Funds | 11 | 156 | |
UL and Other [Member] | 51-100 Basis Points Above [Member] | |||
Policyholder Account Balance [Line Items] | |||
Policyholder Funds | 340 | 195 | |
UL and Other [Member] | 101-150 Basis Points Above [Member] | |||
Policyholder Account Balance [Line Items] | |||
Policyholder Funds | 34 | 29 | |
UL and Other [Member] | Greater Than 150 Basis Points Above [Member] | |||
Policyholder Account Balance [Line Items] | |||
Policyholder Funds | 3,543 | 3,574 | |
UL and Other [Member] | Minimum Crediting Rate Up to 1.00% [Member] | |||
Policyholder Account Balance [Line Items] | |||
Policyholder Funds | $ 872 | $ 833 | |
Minimum Crediting Rate | 1% | 1% | |
UL and Other [Member] | Minimum Crediting Rate Up to 1.00% [Member] | Guaranteed Minimum Crediting Rate [Member] | |||
Policyholder Account Balance [Line Items] | |||
Policyholder Funds | $ 284 | $ 318 | |
UL and Other [Member] | Minimum Crediting Rate Up to 1.00% [Member] | 51-100 Basis Points Above [Member] | |||
Policyholder Account Balance [Line Items] | |||
Policyholder Funds | 192 | 194 | |
UL and Other [Member] | Minimum Crediting Rate Up to 1.00% [Member] | 101-150 Basis Points Above [Member] | |||
Policyholder Account Balance [Line Items] | |||
Policyholder Funds | 34 | 29 | |
UL and Other [Member] | Minimum Crediting Rate Up to 1.00% [Member] | Greater Than 150 Basis Points Above [Member] | |||
Policyholder Account Balance [Line Items] | |||
Policyholder Funds | 362 | 292 | |
UL and Other [Member] | 1.01% to 2.00% [Member] | |||
Policyholder Account Balance [Line Items] | |||
Policyholder Funds | 3,734 | 3,840 | |
UL and Other [Member] | 1.01% to 2.00% [Member] | Guaranteed Minimum Crediting Rate [Member] | |||
Policyholder Account Balance [Line Items] | |||
Policyholder Funds | 553 | 558 | |
UL and Other [Member] | 1.01% to 2.00% [Member] | Greater Than 150 Basis Points Above [Member] | |||
Policyholder Account Balance [Line Items] | |||
Policyholder Funds | 3,181 | 3,282 | |
UL and Other [Member] | 2.01% to 3.00% [Member] | |||
Policyholder Account Balance [Line Items] | |||
Policyholder Funds | 7,156 | 7,374 | |
UL and Other [Member] | 2.01% to 3.00% [Member] | Guaranteed Minimum Crediting Rate [Member] | |||
Policyholder Account Balance [Line Items] | |||
Policyholder Funds | 6,998 | 7,218 | |
UL and Other [Member] | 2.01% to 3.00% [Member] | 1-50 Basis Points Above [Member] | |||
Policyholder Account Balance [Line Items] | |||
Policyholder Funds | 11 | 156 | |
UL and Other [Member] | 2.01% to 3.00% [Member] | 51-100 Basis Points Above [Member] | |||
Policyholder Account Balance [Line Items] | |||
Policyholder Funds | 147 | ||
UL and Other [Member] | 3.01% to 4.00% [Member] | |||
Policyholder Account Balance [Line Items] | |||
Policyholder Funds | 15,386 | 15,859 | |
UL and Other [Member] | 3.01% to 4.00% [Member] | Guaranteed Minimum Crediting Rate [Member] | |||
Policyholder Account Balance [Line Items] | |||
Policyholder Funds | 15,385 | 15,858 | |
UL and Other [Member] | 3.01% to 4.00% [Member] | 51-100 Basis Points Above [Member] | |||
Policyholder Account Balance [Line Items] | |||
Policyholder Funds | 1 | 1 | |
UL and Other [Member] | 4.01% and Above [Member] | |||
Policyholder Account Balance [Line Items] | |||
Policyholder Funds | $ 3,783 | $ 3,824 | |
Minimum Crediting Rate | 4.01% | 4.01% | |
UL and Other [Member] | 4.01% and Above [Member] | Guaranteed Minimum Crediting Rate [Member] | |||
Policyholder Account Balance [Line Items] | |||
Policyholder Funds | $ 3,783 | $ 3,824 | |
UL and Other [Member] | Minimum Crediting Rate Other [Member] | |||
Policyholder Account Balance [Line Items] | |||
Policyholder Funds | $ 5,879 | $ 5,528 | |
UL and Other [Member] | Minimum [Member] | 1.01% to 2.00% [Member] | |||
Policyholder Account Balance [Line Items] | |||
Minimum Crediting Rate | 1.01% | 1.01% | |
UL and Other [Member] | Minimum [Member] | 2.01% to 3.00% [Member] | |||
Policyholder Account Balance [Line Items] | |||
Minimum Crediting Rate | 2.01% | 2.01% | |
UL and Other [Member] | Minimum [Member] | 3.01% to 4.00% [Member] | |||
Policyholder Account Balance [Line Items] | |||
Minimum Crediting Rate | 3.01% | 3.01% | |
UL and Other [Member] | Maximum [Member] | 1.01% to 2.00% [Member] | |||
Policyholder Account Balance [Line Items] | |||
Minimum Crediting Rate | 2% | 2% | |
UL and Other [Member] | Maximum [Member] | 2.01% to 3.00% [Member] | |||
Policyholder Account Balance [Line Items] | |||
Minimum Crediting Rate | 3% | 3% | |
UL and Other [Member] | Maximum [Member] | 3.01% to 4.00% [Member] | |||
Policyholder Account Balance [Line Items] | |||
Minimum Crediting Rate | 4% | 4% | |
Variable Annuities [Member] | |||
Policyholder Account Balance [Line Items] | |||
Policyholder Funds | $ 26,772 | $ 22,184 | 19,148 |
Variable Annuities [Member] | Guaranteed Minimum Crediting Rate [Member] | |||
Policyholder Account Balance [Line Items] | |||
Policyholder Funds | 2,046 | 2,218 | |
Variable Annuities [Member] | 101-150 Basis Points Above [Member] | |||
Policyholder Account Balance [Line Items] | |||
Policyholder Funds | $ 8 | ||
Variable Annuities [Member] | Greater Than 150 Basis Points Above [Member] | |||
Policyholder Account Balance [Line Items] | |||
Policyholder Funds | $ 8 | ||
Variable Annuities [Member] | Minimum Crediting Rate Up to 1.00% [Member] | |||
Policyholder Account Balance [Line Items] | |||
Minimum Crediting Rate | 1% | 1% | |
Variable Annuities [Member] | 1.01% to 2.00% [Member] | |||
Policyholder Account Balance [Line Items] | |||
Policyholder Funds | $ 13 | $ 12 | |
Variable Annuities [Member] | 1.01% to 2.00% [Member] | Guaranteed Minimum Crediting Rate [Member] | |||
Policyholder Account Balance [Line Items] | |||
Policyholder Funds | 5 | 4 | |
Variable Annuities [Member] | 1.01% to 2.00% [Member] | 101-150 Basis Points Above [Member] | |||
Policyholder Account Balance [Line Items] | |||
Policyholder Funds | 8 | ||
Variable Annuities [Member] | 1.01% to 2.00% [Member] | Greater Than 150 Basis Points Above [Member] | |||
Policyholder Account Balance [Line Items] | |||
Policyholder Funds | 8 | ||
Variable Annuities [Member] | 2.01% to 3.00% [Member] | |||
Policyholder Account Balance [Line Items] | |||
Policyholder Funds | 602 | 658 | |
Variable Annuities [Member] | 2.01% to 3.00% [Member] | Guaranteed Minimum Crediting Rate [Member] | |||
Policyholder Account Balance [Line Items] | |||
Policyholder Funds | 602 | 658 | |
Variable Annuities [Member] | 3.01% to 4.00% [Member] | |||
Policyholder Account Balance [Line Items] | |||
Policyholder Funds | 1,429 | 1,545 | |
Variable Annuities [Member] | 3.01% to 4.00% [Member] | Guaranteed Minimum Crediting Rate [Member] | |||
Policyholder Account Balance [Line Items] | |||
Policyholder Funds | 1,429 | 1,545 | |
Variable Annuities [Member] | 4.01% and Above [Member] | |||
Policyholder Account Balance [Line Items] | |||
Policyholder Funds | $ 10 | $ 11 | |
Minimum Crediting Rate | 4.01% | 4.01% | |
Variable Annuities [Member] | 4.01% and Above [Member] | Guaranteed Minimum Crediting Rate [Member] | |||
Policyholder Account Balance [Line Items] | |||
Policyholder Funds | $ 10 | $ 11 | |
Variable Annuities [Member] | Minimum Crediting Rate Other [Member] | |||
Policyholder Account Balance [Line Items] | |||
Policyholder Funds | $ 24,718 | $ 19,958 | |
Variable Annuities [Member] | Minimum [Member] | 1.01% to 2.00% [Member] | |||
Policyholder Account Balance [Line Items] | |||
Minimum Crediting Rate | 1.01% | 1.01% | |
Variable Annuities [Member] | Minimum [Member] | 2.01% to 3.00% [Member] | |||
Policyholder Account Balance [Line Items] | |||
Minimum Crediting Rate | 2.01% | 2.01% | |
Variable Annuities [Member] | Minimum [Member] | 3.01% to 4.00% [Member] | |||
Policyholder Account Balance [Line Items] | |||
Minimum Crediting Rate | 3.01% | 3.01% | |
Variable Annuities [Member] | Maximum [Member] | 1.01% to 2.00% [Member] | |||
Policyholder Account Balance [Line Items] | |||
Minimum Crediting Rate | 2% | 2% | |
Variable Annuities [Member] | Maximum [Member] | 2.01% to 3.00% [Member] | |||
Policyholder Account Balance [Line Items] | |||
Minimum Crediting Rate | 3% | 3% | |
Variable Annuities [Member] | Maximum [Member] | 3.01% to 4.00% [Member] | |||
Policyholder Account Balance [Line Items] | |||
Minimum Crediting Rate | 4% | 4% | |
Fixed Annuities [Member] | |||
Policyholder Account Balance [Line Items] | |||
Policyholder Funds | $ 23,655 | $ 23,338 | 22,522 |
Fixed Annuities [Member] | Guaranteed Minimum Crediting Rate [Member] | |||
Policyholder Account Balance [Line Items] | |||
Policyholder Funds | 4,217 | 4,927 | |
Fixed Annuities [Member] | 1-50 Basis Points Above [Member] | |||
Policyholder Account Balance [Line Items] | |||
Policyholder Funds | 565 | 646 | |
Fixed Annuities [Member] | 51-100 Basis Points Above [Member] | |||
Policyholder Account Balance [Line Items] | |||
Policyholder Funds | 733 | 769 | |
Fixed Annuities [Member] | 101-150 Basis Points Above [Member] | |||
Policyholder Account Balance [Line Items] | |||
Policyholder Funds | 974 | 1,055 | |
Fixed Annuities [Member] | Greater Than 150 Basis Points Above [Member] | |||
Policyholder Account Balance [Line Items] | |||
Policyholder Funds | 3,694 | 2,386 | |
Fixed Annuities [Member] | Minimum Crediting Rate Up to 1.00% [Member] | |||
Policyholder Account Balance [Line Items] | |||
Policyholder Funds | $ 4,631 | $ 3,869 | |
Minimum Crediting Rate | 1% | 1% | |
Fixed Annuities [Member] | Minimum Crediting Rate Up to 1.00% [Member] | Guaranteed Minimum Crediting Rate [Member] | |||
Policyholder Account Balance [Line Items] | |||
Policyholder Funds | $ 744 | $ 891 | |
Fixed Annuities [Member] | Minimum Crediting Rate Up to 1.00% [Member] | 1-50 Basis Points Above [Member] | |||
Policyholder Account Balance [Line Items] | |||
Policyholder Funds | 427 | 497 | |
Fixed Annuities [Member] | Minimum Crediting Rate Up to 1.00% [Member] | 51-100 Basis Points Above [Member] | |||
Policyholder Account Balance [Line Items] | |||
Policyholder Funds | 515 | 589 | |
Fixed Annuities [Member] | Minimum Crediting Rate Up to 1.00% [Member] | 101-150 Basis Points Above [Member] | |||
Policyholder Account Balance [Line Items] | |||
Policyholder Funds | 518 | 563 | |
Fixed Annuities [Member] | Minimum Crediting Rate Up to 1.00% [Member] | Greater Than 150 Basis Points Above [Member] | |||
Policyholder Account Balance [Line Items] | |||
Policyholder Funds | 2,427 | 1,329 | |
Fixed Annuities [Member] | 1.01% to 2.00% [Member] | |||
Policyholder Account Balance [Line Items] | |||
Policyholder Funds | 2,519 | 2,416 | |
Fixed Annuities [Member] | 1.01% to 2.00% [Member] | Guaranteed Minimum Crediting Rate [Member] | |||
Policyholder Account Balance [Line Items] | |||
Policyholder Funds | 481 | 544 | |
Fixed Annuities [Member] | 1.01% to 2.00% [Member] | 1-50 Basis Points Above [Member] | |||
Policyholder Account Balance [Line Items] | |||
Policyholder Funds | 106 | 144 | |
Fixed Annuities [Member] | 1.01% to 2.00% [Member] | 51-100 Basis Points Above [Member] | |||
Policyholder Account Balance [Line Items] | |||
Policyholder Funds | 212 | 179 | |
Fixed Annuities [Member] | 1.01% to 2.00% [Member] | 101-150 Basis Points Above [Member] | |||
Policyholder Account Balance [Line Items] | |||
Policyholder Funds | 456 | 492 | |
Fixed Annuities [Member] | 1.01% to 2.00% [Member] | Greater Than 150 Basis Points Above [Member] | |||
Policyholder Account Balance [Line Items] | |||
Policyholder Funds | 1,264 | 1,057 | |
Fixed Annuities [Member] | 2.01% to 3.00% [Member] | |||
Policyholder Account Balance [Line Items] | |||
Policyholder Funds | 1,922 | 1,979 | |
Fixed Annuities [Member] | 2.01% to 3.00% [Member] | Guaranteed Minimum Crediting Rate [Member] | |||
Policyholder Account Balance [Line Items] | |||
Policyholder Funds | 1,881 | 1,973 | |
Fixed Annuities [Member] | 2.01% to 3.00% [Member] | 1-50 Basis Points Above [Member] | |||
Policyholder Account Balance [Line Items] | |||
Policyholder Funds | 32 | 5 | |
Fixed Annuities [Member] | 2.01% to 3.00% [Member] | 51-100 Basis Points Above [Member] | |||
Policyholder Account Balance [Line Items] | |||
Policyholder Funds | 6 | 1 | |
Fixed Annuities [Member] | 2.01% to 3.00% [Member] | Greater Than 150 Basis Points Above [Member] | |||
Policyholder Account Balance [Line Items] | |||
Policyholder Funds | 3 | ||
Fixed Annuities [Member] | 3.01% to 4.00% [Member] | |||
Policyholder Account Balance [Line Items] | |||
Policyholder Funds | 929 | 1,326 | |
Fixed Annuities [Member] | 3.01% to 4.00% [Member] | Guaranteed Minimum Crediting Rate [Member] | |||
Policyholder Account Balance [Line Items] | |||
Policyholder Funds | 929 | 1,326 | |
Fixed Annuities [Member] | 4.01% and Above [Member] | |||
Policyholder Account Balance [Line Items] | |||
Policyholder Funds | $ 182 | $ 193 | |
Minimum Crediting Rate | 4.01% | 4.01% | |
Fixed Annuities [Member] | 4.01% and Above [Member] | Guaranteed Minimum Crediting Rate [Member] | |||
Policyholder Account Balance [Line Items] | |||
Policyholder Funds | $ 182 | $ 193 | |
Fixed Annuities [Member] | Minimum Crediting Rate Other [Member] | |||
Policyholder Account Balance [Line Items] | |||
Policyholder Funds | $ 13,472 | $ 13,555 | |
Fixed Annuities [Member] | Minimum [Member] | 1.01% to 2.00% [Member] | |||
Policyholder Account Balance [Line Items] | |||
Minimum Crediting Rate | 1.01% | 1.01% | |
Fixed Annuities [Member] | Minimum [Member] | 2.01% to 3.00% [Member] | |||
Policyholder Account Balance [Line Items] | |||
Minimum Crediting Rate | 2.01% | 2.01% | |
Fixed Annuities [Member] | Minimum [Member] | 3.01% to 4.00% [Member] | |||
Policyholder Account Balance [Line Items] | |||
Minimum Crediting Rate | 3.01% | 3.01% | |
Fixed Annuities [Member] | Maximum [Member] | 1.01% to 2.00% [Member] | |||
Policyholder Account Balance [Line Items] | |||
Minimum Crediting Rate | 2% | 2% | |
Fixed Annuities [Member] | Maximum [Member] | 2.01% to 3.00% [Member] | |||
Policyholder Account Balance [Line Items] | |||
Minimum Crediting Rate | 3% | 3% | |
Fixed Annuities [Member] | Maximum [Member] | 3.01% to 4.00% [Member] | |||
Policyholder Account Balance [Line Items] | |||
Minimum Crediting Rate | 4% | 4% | |
Retirement Plan Services Segment [Member] | |||
Policyholder Account Balance [Line Items] | |||
Policyholder Funds | $ 24,099 | $ 25,138 | $ 23,579 |
Retirement Plan Services Segment [Member] | Guaranteed Minimum Crediting Rate [Member] | |||
Policyholder Account Balance [Line Items] | |||
Policyholder Funds | 10,475 | 12,579 | |
Retirement Plan Services Segment [Member] | 1-50 Basis Points Above [Member] | |||
Policyholder Account Balance [Line Items] | |||
Policyholder Funds | 3,001 | 3,200 | |
Retirement Plan Services Segment [Member] | 51-100 Basis Points Above [Member] | |||
Policyholder Account Balance [Line Items] | |||
Policyholder Funds | 2,236 | 5,286 | |
Retirement Plan Services Segment [Member] | 101-150 Basis Points Above [Member] | |||
Policyholder Account Balance [Line Items] | |||
Policyholder Funds | 5,550 | 2,165 | |
Retirement Plan Services Segment [Member] | Greater Than 150 Basis Points Above [Member] | |||
Policyholder Account Balance [Line Items] | |||
Policyholder Funds | 2,837 | 1,908 | |
Retirement Plan Services Segment [Member] | Minimum Crediting Rate Up to 1.00% [Member] | |||
Policyholder Account Balance [Line Items] | |||
Policyholder Funds | $ 9,484 | $ 9,877 | |
Minimum Crediting Rate | 1% | 1% | |
Retirement Plan Services Segment [Member] | Minimum Crediting Rate Up to 1.00% [Member] | Guaranteed Minimum Crediting Rate [Member] | |||
Policyholder Account Balance [Line Items] | |||
Policyholder Funds | $ 407 | $ 961 | |
Retirement Plan Services Segment [Member] | Minimum Crediting Rate Up to 1.00% [Member] | 1-50 Basis Points Above [Member] | |||
Policyholder Account Balance [Line Items] | |||
Policyholder Funds | 596 | 1,001 | |
Retirement Plan Services Segment [Member] | Minimum Crediting Rate Up to 1.00% [Member] | 51-100 Basis Points Above [Member] | |||
Policyholder Account Balance [Line Items] | |||
Policyholder Funds | 762 | 4,304 | |
Retirement Plan Services Segment [Member] | Minimum Crediting Rate Up to 1.00% [Member] | 101-150 Basis Points Above [Member] | |||
Policyholder Account Balance [Line Items] | |||
Policyholder Funds | 4,882 | 1,703 | |
Retirement Plan Services Segment [Member] | Minimum Crediting Rate Up to 1.00% [Member] | Greater Than 150 Basis Points Above [Member] | |||
Policyholder Account Balance [Line Items] | |||
Policyholder Funds | 2,837 | 1,908 | |
Retirement Plan Services Segment [Member] | 1.01% to 2.00% [Member] | |||
Policyholder Account Balance [Line Items] | |||
Policyholder Funds | 5,157 | 5,415 | |
Retirement Plan Services Segment [Member] | 1.01% to 2.00% [Member] | Guaranteed Minimum Crediting Rate [Member] | |||
Policyholder Account Balance [Line Items] | |||
Policyholder Funds | 610 | 1,774 | |
Retirement Plan Services Segment [Member] | 1.01% to 2.00% [Member] | 1-50 Basis Points Above [Member] | |||
Policyholder Account Balance [Line Items] | |||
Policyholder Funds | 2,405 | 2,197 | |
Retirement Plan Services Segment [Member] | 1.01% to 2.00% [Member] | 51-100 Basis Points Above [Member] | |||
Policyholder Account Balance [Line Items] | |||
Policyholder Funds | 1,474 | 982 | |
Retirement Plan Services Segment [Member] | 1.01% to 2.00% [Member] | 101-150 Basis Points Above [Member] | |||
Policyholder Account Balance [Line Items] | |||
Policyholder Funds | 668 | 462 | |
Retirement Plan Services Segment [Member] | 2.01% to 3.00% [Member] | |||
Policyholder Account Balance [Line Items] | |||
Policyholder Funds | $ 2,594 | 2,712 | |
Minimum Crediting Rate | 3% | ||
Retirement Plan Services Segment [Member] | 2.01% to 3.00% [Member] | Guaranteed Minimum Crediting Rate [Member] | |||
Policyholder Account Balance [Line Items] | |||
Policyholder Funds | $ 2,594 | 2,711 | |
Retirement Plan Services Segment [Member] | 2.01% to 3.00% [Member] | 1-50 Basis Points Above [Member] | |||
Policyholder Account Balance [Line Items] | |||
Policyholder Funds | 1 | ||
Retirement Plan Services Segment [Member] | 3.01% to 4.00% [Member] | |||
Policyholder Account Balance [Line Items] | |||
Policyholder Funds | 5,223 | 5,623 | |
Retirement Plan Services Segment [Member] | 3.01% to 4.00% [Member] | Guaranteed Minimum Crediting Rate [Member] | |||
Policyholder Account Balance [Line Items] | |||
Policyholder Funds | 5,223 | 5,622 | |
Retirement Plan Services Segment [Member] | 3.01% to 4.00% [Member] | 1-50 Basis Points Above [Member] | |||
Policyholder Account Balance [Line Items] | |||
Policyholder Funds | 1 | ||
Retirement Plan Services Segment [Member] | 4.01% and Above [Member] | |||
Policyholder Account Balance [Line Items] | |||
Policyholder Funds | $ 1,641 | $ 1,511 | |
Minimum Crediting Rate | 4.01% | 4.01% | |
Retirement Plan Services Segment [Member] | 4.01% and Above [Member] | Guaranteed Minimum Crediting Rate [Member] | |||
Policyholder Account Balance [Line Items] | |||
Policyholder Funds | $ 1,641 | $ 1,511 | |
Retirement Plan Services Segment [Member] | Minimum [Member] | 1.01% to 2.00% [Member] | |||
Policyholder Account Balance [Line Items] | |||
Minimum Crediting Rate | 1.01% | 1.01% | |
Retirement Plan Services Segment [Member] | Minimum [Member] | 2.01% to 3.00% [Member] | |||
Policyholder Account Balance [Line Items] | |||
Minimum Crediting Rate | 2.01% | 2.01% | |
Retirement Plan Services Segment [Member] | Minimum [Member] | 3.01% to 4.00% [Member] | |||
Policyholder Account Balance [Line Items] | |||
Minimum Crediting Rate | 3.01% | 3.01% | |
Retirement Plan Services Segment [Member] | Maximum [Member] | 1.01% to 2.00% [Member] | |||
Policyholder Account Balance [Line Items] | |||
Minimum Crediting Rate | 2% | 2% | |
Retirement Plan Services Segment [Member] | Maximum [Member] | 2.01% to 3.00% [Member] | |||
Policyholder Account Balance [Line Items] | |||
Minimum Crediting Rate | 3% | 3% | |
Retirement Plan Services Segment [Member] | Maximum [Member] | 3.01% to 4.00% [Member] | |||
Policyholder Account Balance [Line Items] | |||
Minimum Crediting Rate | 4% | 4% |
Future Contract Benefit (Narrat
Future Contract Benefit (Narrative) (Details) $ in Billions | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
UL and Other [Member] | |
Liability for Future Policy Benefit, Activity [Line Items] | |
Unfavorable Impact Primarily From Updates To Policyholder Lapse Behavior Assumptions, Net Of Reinsurance, After-Tax | $ 1.7 |
Future Contract Benefit (Summar
Future Contract Benefit (Summary of Reconciliation of Future Contract Benefits) (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Liability for Future Policy Benefit, Activity [Line Items] | ||
Future contract benefits | $ 37,860 | $ 38,302 |
Traditional Life [Member] | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Future contract benefits | 3,252 | 3,190 |
Payout Annuities [Member] | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Future contract benefits | 1,943 | 2,003 |
UL and Other [Member] | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Future contract benefits | 14,899 | 14,777 |
Group Protection Segment [Member] | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Future contract benefits | 5,373 | 5,462 |
Other Operations [Member] | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Future contract benefits | 9,157 | 9,651 |
Protective [Member] | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Future contract benefits | 5,300 | 5,400 |
Other [Member] | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Future contract benefits | 3,236 | 3,219 |
Swiss Re [Member] | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Future contract benefits | $ 2,000 | $ 2,200 |
Future Contract Benefit (Summ_2
Future Contract Benefit (Summary of Changes in Present values of Expected Net Premiums and LFPB) (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Present Value of Expected LFBP [Abstract] | |||
Less: Effect of cumulative changes in discount rate assumptions | $ (905) | $ 1,113 | |
Effect of changes in discount rate assumptions | (136) | (905) | $ 1,113 |
Liability for Future Policy Benefits, Total | 37,860 | 38,302 | |
Traditional Life [Member] | |||
Present Value of Expected Net Premiums [Abstract] | |||
Balance as of beginning-of-year | 5,896 | 6,610 | |
Less: Effect of cumulative changes in discount rate assumptions | (584) | 843 | |
Beginning balance of original discount rate | 6,480 | 5,767 | |
Effect of changes in cash flow assumptions | (5) | (382) | |
Effect of actual variances from expected experience | (262) | (21) | |
Adjusted beginning-of-year balance | 6,213 | 5,364 | |
Issuances | 460 | 1,655 | |
Interest accrual | 176 | 209 | |
Net premiums collected | (588) | (742) | |
Flooring impact of LFPB | 3 | (6) | |
Ending balance at original discount rate | 6,264 | 6,480 | |
Effect of cumulative changes in discount rate assumptions | (527) | (584) | 843 |
Balance as of end-of-period | 5,737 | 5,896 | |
Present Value of Expected LFBP [Abstract] | |||
Balance as of beginning-of-year | 9,086 | 10,353 | |
Less: Effect of cumulative changes in discount rate assumptions | (793) | 1,460 | |
Beginning balance of original discount rate | 9,879 | 8,893 | |
Effect of changes in cash flow assumptions | (21) | (321) | |
Effect of actual variances from expected experience | (289) | (5) | |
Adjusted balance as of beginning-of-year | 9,569 | 8,567 | |
Issuance | 460 | 1,655 | |
Interest Accrual | 270 | 326 | |
Benefit payments | (479) | (669) | |
Ending balance at original discount rate | 9,820 | 9,879 | |
Effect of changes in discount rate assumptions | (831) | (793) | 1,460 |
Balance as of end-of-period | 8,989 | 9,086 | |
Liability for Future Policy Benefits, Total | 3,252 | 3,190 | |
Less: reinsurance recoverables | 232 | 270 | |
Net balance as of end-of-year, net of reinsurance | 3,020 | $ 2,920 | |
Weighted-average duration of future policyholder benefit liability (years) | 11 years | ||
Payout Annuities [Member] | |||
Present Value of Expected LFBP [Abstract] | |||
Balance as of beginning-of-year | 2,003 | $ 2,511 | |
Less: Effect of cumulative changes in discount rate assumptions | (263) | 266 | |
Beginning balance of original discount rate | 2,266 | 2,245 | |
Effect of changes in cash flow assumptions | 17 | ||
Effect of actual variances from expected experience | (1) | 3 | |
Adjusted balance as of beginning-of-year | 2,282 | 2,248 | |
Issuance | 83 | 122 | |
Interest Accrual | 64 | 84 | |
Benefit payments | (142) | (188) | |
Ending balance at original discount rate | 2,287 | 2,266 | |
Effect of changes in discount rate assumptions | (344) | (263) | 266 |
Balance as of end-of-period | 1,943 | 2,003 | |
Liability for Future Policy Benefits, Total | 1,943 | 2,003 | |
Less: reinsurance recoverables | 11 | 10 | |
Net balance as of end-of-year, net of reinsurance | 1,932 | $ 1,993 | |
Weighted-average duration of future policyholder benefit liability (years) | 9 years | ||
Deferred Profit Liability | 38 | $ 38 | 22 |
Group Protection [Member] | |||
Present Value of Expected LFBP [Abstract] | |||
Balance as of beginning-of-year | 5,462 | 5,936 | |
Less: Effect of cumulative changes in discount rate assumptions | (597) | 262 | |
Beginning balance of original discount rate | 6,059 | 5,674 | |
Effect of changes in cash flow assumptions | (27) | 15 | |
Effect of actual variances from expected experience | (233) | (117) | |
Adjusted balance as of beginning-of-year | 5,799 | 5,572 | |
Issuance | 1,267 | 1,777 | |
Interest Accrual | 122 | 141 | |
Benefit payments | (1,095) | (1,431) | |
Ending balance at original discount rate | 6,093 | 6,059 | |
Effect of changes in discount rate assumptions | (720) | (597) | 262 |
Balance as of end-of-period | 5,373 | 5,462 | |
Less: reinsurance recoverables | 117 | 127 | |
Net balance as of end-of-year, net of reinsurance | $ 5,256 | $ 5,335 | |
Weighted-average duration of future policyholder benefit liability (years) | 5 years | 4 years | |
UL and Other [Member] | |||
Present Value of Expected LFBP [Abstract] | |||
Balance as of beginning-of-year | $ 14,777 | $ 12,513 | |
Balance as of beginning-of-year, excluding shadow balance in AOCI | 15,682 | 11,400 | |
Effect of changes in cash flow assumptions | 173 | 3,108 | |
Effect of actual variances from expected experience | (28) | $ 195 | |
Adjusted balance as of beginning-of-year | 15,827 | 14,703 | |
Issuance | 7 | ||
Interest Accrual | 573 | 626 | |
Net assessments collected | 334 | 974 | |
Benefit payments | (473) | (628) | |
Balance as of end-of-period, excluding shadow balance in AOCI | 16,261 | 15,682 | |
Balance as of end-of-period | 14,899 | 14,777 | |
Less: reinsurance recoverables | 1,897 | 1,975 | |
Net balance as of end-of-year, net of reinsurance | $ 13,002 | $ 12,802 | |
Weighted-average duration of future policyholder benefit liability (years) | 17 years | 17 years |
Future Contract Benefit (Summ_3
Future Contract Benefit (Summary of Discounted and Undiscounted Expected Future Gross premiums and Expected Future Benefit Payments) (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Payout Annuities [Member] | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Expected future benefit payments, undiscounted | $ 3,552 | $ 3,471 |
Expected future benefit payments, Discounted | 1,943 | 2,003 |
Traditional Life [Member] | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Expected future gross premiums, undiscounted | 13,410 | 13,166 |
Expected future benefit payments, undiscounted | 13,372 | 13,026 |
Expected future gross premiums, discounted | 8,802 | 8,887 |
Expected future benefit payments, Discounted | 8,989 | 9,086 |
Group Protection [Member] | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Expected future benefit payments, undiscounted | 7,148 | 7,063 |
Expected future benefit payments, Discounted | $ 6,093 | $ 6,059 |
Future Contract Benefit (Summ_4
Future Contract Benefit (Summary of Gross Premiums and Interest Accretion) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Traditional Life [Member] | ||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Gross assessments | $ 293 | $ 285 | $ 885 | $ 841 |
Interest accretion | 31 | 30 | 94 | 87 |
Payout Annuities [Member] | ||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Gross assessments | 16 | 49 | 88 | 92 |
Interest accretion | 22 | 21 | 64 | 63 |
Group Protection [Member] | ||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Gross assessments | 874 | 852 | 2,645 | 2,523 |
Interest accretion | 39 | 33 | 122 | 111 |
UL and Other [Member] | ||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Gross assessments | 337 | 690 | 1,794 | 2,097 |
Interest accretion | $ 197 | $ 175 | $ 573 | $ 446 |
Future Contract Benefit (Summ_5
Future Contract Benefit (Summary of Weighted-Average Interest Rates (Details) | Sep. 30, 2023 | Dec. 31, 2022 |
Traditional Life [Member] | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Interest accretion rate | 5% | 5% |
Current discount rate | 5.60% | 5.10% |
Payout Annuities [Member] | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Interest accretion rate | 3.90% | 3.90% |
Current discount rate | 5.80% | 5.30% |
UL and Other [Member] | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Interest accretion rate | 5.10% | 5% |
Group Protection [Member] | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Interest accretion rate | 3% | 2.80% |
Current discount rate | 5.70% | 5.10% |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Narrative) (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans with fair value option in non-accrual | $ 0 | $ 0 |
Loans with fair value option, 90 days past due and still accruing | 0 | 0 |
Fair Value, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | 0 | 0 |
Liabilities measured at fair value | $ 0 | $ 0 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments (Carrying and Estimated Fair Values of Financial Instruments) (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Assets | ||
Fixed maturity AFS securities | $ 100,387 | $ 99,465 |
Trading securities | 2,749 | 3,446 |
Equity securities | 383 | 427 |
Mortgage loans on real estate | 18,661 | 18,211 |
Derivative investments | 5,454 | 3,519 |
Other investments | 4,428 | 3,577 |
Market Risk Benefit, Asset, Amount | 4,108 | 2,807 |
Liabilities | ||
MRBs liabilities | (1,385) | (2,078) |
Carrying Value [Member] | ||
Assets | ||
Trading securities | 2,749 | 3,446 |
Equity securities | 383 | 427 |
Mortgage loans on real estate | 18,661 | 18,211 |
Derivative investments | 5,454 | 3,519 |
Other investments | 4,428 | 3,577 |
Cash and invested cash | 2,285 | 2,499 |
Market Risk Benefit, Asset, Amount | 4,108 | 2,807 |
Ceded MRBs | 273 | 540 |
Reinsurance related embedded derivatives | 933 | 681 |
Liabilities | ||
Account balances of certain investment contracts | (43,068) | (43,550) |
Indexed annuity and IUL contracts embedded derivatives | (7,174) | (4,783) |
MRBs liabilities | (1,385) | (2,078) |
Short-term debt | (497) | (562) |
Long-term debt | (2,244) | (2,269) |
Remaining guaranteed interest and similar contracts | (433) | (574) |
Fair Value [Member] | ||
Assets | ||
Trading securities | 2,749 | 3,446 |
Equity securities | 383 | 427 |
Mortgage loans on real estate | 16,553 | 16,477 |
Derivative investments | 5,454 | 3,519 |
Other investments | 4,428 | 3,577 |
Cash and invested cash | 2,285 | 2,499 |
Market Risk Benefit, Asset, Amount | 4,108 | 2,807 |
Ceded MRBs | 273 | 540 |
Reinsurance related embedded derivatives | 933 | 681 |
Liabilities | ||
Account balances of certain investment contracts | (30,869) | (34,251) |
Indexed annuity and IUL contracts embedded derivatives | (7,174) | (4,783) |
MRBs liabilities | (1,385) | (2,078) |
Short-term debt | (497) | (562) |
Long-term debt | (2,114) | (2,166) |
Remaining guaranteed interest and similar contracts | (433) | (574) |
Fixed Maturity AFS Securities [Member] | Carrying Value [Member] | ||
Assets | ||
Fixed maturity AFS securities | 100,387 | 99,465 |
Fixed Maturity AFS Securities [Member] | Fair Value [Member] | ||
Assets | ||
Fixed maturity AFS securities | 100,387 | 99,465 |
Other Assets [Member] | Carrying Value [Member] | ||
Assets | ||
Indexed annuity ceded embedded derivatives | 586 | 525 |
LPR ceded derivative | 184 | 212 |
Separate account assets | 145,810 | 143,536 |
Other Assets [Member] | Fair Value [Member] | ||
Assets | ||
Indexed annuity ceded embedded derivatives | 586 | 525 |
LPR ceded derivative | 184 | 212 |
Separate account assets | 145,810 | 143,536 |
Other Liabilities [Member] | Carrying Value [Member] | ||
Liabilities | ||
Ceded MRBs | (1,736) | (246) |
Other liabilities - derivative liabilities | (628) | (254) |
Other Liabilities [Member] | Fair Value [Member] | ||
Liabilities | ||
Ceded MRBs | (1,736) | (246) |
Other liabilities - derivative liabilities | $ (628) | $ (254) |
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 | Sep. 30, 2023 | Dec. 31, 2022 |
Fair Value of Financial Instruments [Abstract] | ||
Fair value | $ 315 | $ 487 |
Aggregate contractual principal | $ 341 | $ 514 |
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 | Sep. 30, 2023 | Dec. 31, 2022 |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | $ 267,978 | $ 261,189 |
Liabilities measured at fair value | (15,264) | (10,376) |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 807 | 784 |
Significant Observable Inputs (Level 2) [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 252,444 | 248,107 |
Liabilities measured at fair value | (4,105) | (2,666) |
Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 14,727 | 12,298 |
Liabilities measured at fair value | (11,159) | (7,710) |
Corporate Bonds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 78,761 | 79,166 |
Corporate Bonds [Member] | Significant Observable Inputs (Level 2) [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 72,294 | 73,980 |
Corporate Bonds [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 6,467 | 5,186 |
ABS [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 12,388 | 10,899 |
ABS [Member] | Significant Observable Inputs (Level 2) [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 11,051 | 9,782 |
ABS [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 1,337 | 1,117 |
U.S. Government Bonds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 372 | 351 |
U.S. Government Bonds [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 | 332 | 332 |
U.S. Government Bonds [Member] | Significant Observable Inputs (Level 2) [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 40 | 19 |
Foreign Government Bonds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 270 | 311 |
Foreign Government Bonds [Member] | Significant Observable Inputs (Level 2) [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 270 | 311 |
RMBS [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 1,869 | 1,836 |
RMBS [Member] | Significant Observable Inputs (Level 2) [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 1,857 | 1,835 |
RMBS [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 12 | 1 |
CMBS [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 1,701 | 1,667 |
CMBS [Member] | Significant Observable Inputs (Level 2) [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 1,701 | 1,667 |
State And Municipal Bonds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 4,671 | 4,885 |
State And Municipal Bonds [Member] | Significant Observable Inputs (Level 2) [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 4,638 | 4,850 |
State And Municipal Bonds [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 33 | 35 |
Hybrid And Redeemable Preferred Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 355 | 350 |
Hybrid And Redeemable Preferred 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 | 45 | 40 |
Hybrid And Redeemable Preferred Securities [Member] | Significant Observable Inputs (Level 2) [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 262 | 261 |
Hybrid And Redeemable Preferred Securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 48 | 49 |
Trading Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 2,749 | 3,446 |
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 | 2,399 | 2,865 |
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 | 350 | 581 |
Equity Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 383 | 427 |
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 | 1 | |
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 | 245 | 274 |
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 | 137 | 153 |
Mortgage Loans On Real Estate [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 315 | 487 |
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 | 315 | 487 |
Derivative Investments [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 9,795 | 6,534 |
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 | 8,918 | 5,929 |
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 | 877 | 605 |
Other Investments [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 170 | 30 |
Other Investments [Member] | Significant Observable Inputs (Level 2) [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 170 | 30 |
Cash and Invested [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 2,285 | 2,499 |
Cash and Invested [Member] | Significant Observable Inputs (Level 2) [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 2,285 | 2,499 |
MRB Assets [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 4,108 | 2,807 |
MRB Assets [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 4,108 | 2,807 |
GLB Direct Embedded Derivatives [Member] | Other Assets [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 681 | |
GLB Direct Embedded Derivatives [Member] | Significant Observable Inputs (Level 2) [Member] | Other Assets [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 681 | |
Ceded MRBs [Member] | Other Assets [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 273 | 540 |
Ceded MRBs [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 | 273 | 540 |
LPR Ceded Derivative [Member] | Other Assets [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 184 | 212 |
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 | 184 | 212 |
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 | (7,174) | (4,783) |
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 | (7,174) | (4,783) |
Separate Account Assets [Member] | Other Assets [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 145,810 | 143,536 |
Separate Account Assets [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Other Assets [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 429 | 412 |
Separate Account Assets [Member] | Significant Observable Inputs (Level 2) [Member] | Other Assets [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 145,381 | 143,124 |
Reinsurance Related Embedded Derivatives [Member] | Other Assets [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 933 | |
Reinsurance Related Embedded Derivatives [Member] | Significant Observable Inputs (Level 2) [Member] | Other Assets [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 933 | |
MRB Liabilities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Liabilities measured at fair value | (1,385) | (2,078) |
MRB Liabilities [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Liabilities measured at fair value | (1,385) | (2,078) |
Ceded MRBs [Member] | Other Liabilities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Liabilities measured at fair value | (1,736) | (246) |
Ceded MRBs [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 | (1,736) | (246) |
Derivative Liabilities [Member] | Other Liabilities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Liabilities measured at fair value | (4,969) | (3,269) |
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 | (4,105) | (2,666) |
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 | (864) | (603) |
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 | 586 | 525 |
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 | $ 586 | $ 525 |
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 | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Level 3 Unobservable Input Reconciliation | ||||
Beginning Fair Value | $ 564 | $ 10,628 | $ 3,859 | $ 10,296 |
Items Included in Net Income | 106 | (451) | (3,560) | 214 |
Gains (Losses) in OCI and Other | (22) | (591) | 1 | (1,660) |
Issuances, Sales, Maturities, Settlements, Calls, Net | 353 | (93) | 842 | 688 |
Transfers Into or Out of Level 3, Net | (156) | (161) | (297) | (206) |
Ending Fair Value | 845 | 9,332 | 845 | 9,332 |
Corporate Bonds [Member] | ||||
Level 3 Unobservable Input Reconciliation | ||||
Beginning Fair Value | 6,177 | 8,531 | 5,186 | 8,801 |
Items Included in Net Income | (7) | 1 | (19) | 2 |
Gains (Losses) in OCI and Other | (13) | (512) | 2 | (1,514) |
Issuances, Sales, Maturities, Settlements, Calls, Net | 353 | (34) | 1,302 | 583 |
Transfers Into or Out of Level 3, Net | (43) | (16) | (4) | 98 |
Ending Fair Value | 6,467 | 7,970 | 6,467 | 7,970 |
Foreign Government Bonds [Member] | ||||
Level 3 Unobservable Input Reconciliation | ||||
Beginning Fair Value | 37 | 41 | ||
Gains (Losses) in OCI and Other | (3) | (7) | ||
Ending Fair Value | 34 | 34 | ||
RMBS [Member] | ||||
Level 3 Unobservable Input Reconciliation | ||||
Beginning Fair Value | 6 | 1 | 1 | 3 |
Gains (Losses) in OCI and Other | (1) | (1) | ||
Issuances, Sales, Maturities, Settlements, Calls, Net | 9 | 5 | 21 | |
Transfers Into or Out of Level 3, Net | 7 | 7 | (14) | |
Ending Fair Value | 12 | 10 | 12 | 10 |
CMBS [Member] | ||||
Level 3 Unobservable Input Reconciliation | ||||
Issuances, Sales, Maturities, Settlements, Calls, Net | (4) | 17 | ||
Transfers Into or Out of Level 3, Net | 4 | (17) | ||
ABS [Member] | ||||
Level 3 Unobservable Input Reconciliation | ||||
Beginning Fair Value | 1,208 | 1,153 | 1,117 | 870 |
Gains (Losses) in OCI and Other | (5) | (38) | (3) | (98) |
Issuances, Sales, Maturities, Settlements, Calls, Net | 247 | 123 | 567 | 576 |
Transfers Into or Out of Level 3, Net | (113) | (147) | (344) | (257) |
Ending Fair Value | 1,337 | 1,091 | 1,337 | 1,091 |
State And Municipal Bonds [Member] | ||||
Level 3 Unobservable Input Reconciliation | ||||
Beginning Fair Value | 36 | 35 | ||
Items Included in Net Income | (2) | (4) | ||
Gains (Losses) in OCI and Other | (1) | 3 | ||
Issuances, Sales, Maturities, Settlements, Calls, Net | (1) | |||
Ending Fair Value | 33 | 33 | ||
Hybrid And Redeemable Preferred Securities [Member] | ||||
Level 3 Unobservable Input Reconciliation | ||||
Beginning Fair Value | 60 | 99 | 49 | 90 |
Items Included in Net Income | (1) | (1) | ||
Gains (Losses) in OCI and Other | 1 | (34) | (2) | (25) |
Issuances, Sales, Maturities, Settlements, Calls, Net | (6) | (2) | (6) | |
Transfers Into or Out of Level 3, Net | (13) | 3 | ||
Ending Fair Value | 48 | 58 | 48 | 58 |
Trading Securities [Member] | ||||
Level 3 Unobservable Input Reconciliation | ||||
Beginning Fair Value | 351 | 620 | 581 | 828 |
Items Included in Net Income | (3) | (24) | (1) | (82) |
Issuances, Sales, Maturities, Settlements, Calls, Net | (4) | 3 | (236) | (143) |
Transfers Into or Out of Level 3, Net | 6 | 3 | 6 | (1) |
Ending Fair Value | 350 | 602 | 350 | 602 |
Equity Securities [Member] | ||||
Level 3 Unobservable Input Reconciliation | ||||
Beginning Fair Value | 125 | 145 | 153 | 91 |
Items Included in Net Income | 12 | 24 | (17) | 54 |
Issuances, Sales, Maturities, Settlements, Calls, Net | (1) | 1 | 23 | |
Ending Fair Value | 137 | 168 | 137 | 168 |
Mortgage Loans On Real Estate [Member] | ||||
Level 3 Unobservable Input Reconciliation | ||||
Beginning Fair Value | 404 | 528 | 487 | 739 |
Items Included in Net Income | 2 | (1) | (16) | |
Gains (Losses) in OCI and Other | (3) | (4) | 2 | (10) |
Issuances, Sales, Maturities, Settlements, Calls, Net | (88) | (28) | (174) | (218) |
Ending Fair Value | 315 | 495 | 315 | 495 |
Derivative Investments [Member] | ||||
Level 3 Unobservable Input Reconciliation | ||||
Beginning Fair Value | 31 | 3 | 2 | 21 |
Items Included in Net Income | (26) | 3 | (28) | 5 |
Gains (Losses) in OCI and Other | (6) | |||
Issuances, Sales, Maturities, Settlements, Calls, Net | 8 | 8 | ||
Transfers Into or Out of Level 3, Net | (1) | 31 | (15) | |
Ending Fair Value | 13 | 5 | 13 | 5 |
Ceded MRBs [Member] | Other Assets [Member] | ||||
Level 3 Unobservable Input Reconciliation | ||||
Beginning Fair Value | 401 | 2,337 | 540 | 4,114 |
Items Included in Net Income | (128) | (722) | (267) | (2,499) |
Ending Fair Value | 273 | 1,615 | 273 | 1,615 |
Ceded MRBs [Member] | Other Liabilities [Member] | ||||
Level 3 Unobservable Input Reconciliation | ||||
Beginning Fair Value | (246) | (17) | ||
Items Included in Net Income | (1,490) | (152) | ||
Ending Fair Value | (1,736) | (169) | (1,736) | (169) |
GLB Direct Embedded Derivatives [Member] | Other Liabilities [Member] | ||||
Level 3 Unobservable Input Reconciliation | ||||
Beginning Fair Value | (115) | |||
Items Included in Net Income | (54) | |||
Ending Fair Value | (169) | (169) | ||
GLB Ceded Embedded Derivatives [Member] | Other Liabilities [Member] | ||||
Level 3 Unobservable Input Reconciliation | ||||
Beginning Fair Value | (1,440) | |||
Items Included in Net Income | (296) | |||
Ending Fair Value | (1,736) | (1,736) | ||
Indexed Annuity Ceded Embedded Derivatives [Member] | ||||
Level 3 Unobservable Input Reconciliation | ||||
Beginning Fair Value | 603 | |||
Items Included in Net Income | (49) | |||
Issuances, Sales, Maturities, Settlements, Calls, Net | 32 | |||
Ending Fair Value | 586 | 586 | ||
Indexed Annuity Ceded Embedded Derivatives [Member] | Other Assets [Member] | ||||
Level 3 Unobservable Input Reconciliation | ||||
Beginning Fair Value | 440 | 525 | ||
Items Included in Net Income | (47) | (37) | ||
Issuances, Sales, Maturities, Settlements, Calls, Net | 63 | 98 | ||
Ending Fair Value | 586 | 456 | 586 | 456 |
LPR Ceded Derivative [Member] | ||||
Level 3 Unobservable Input Reconciliation | ||||
Beginning Fair Value | 202 | |||
Items Included in Net Income | (18) | |||
Ending Fair Value | 184 | 184 | ||
LPR Ceded Derivative [Member] | Other Assets [Member] | ||||
Level 3 Unobservable Input Reconciliation | ||||
Beginning Fair Value | 215 | 212 | 318 | |
Items Included in Net Income | (24) | (28) | (127) | |
Ending Fair Value | 184 | 191 | 184 | 191 |
Indexed Annuity And IUL Contracts [Member] | Other Assets [Member] | ||||
Level 3 Unobservable Input Reconciliation | ||||
Beginning Fair Value | 528 | |||
Items Included in Net Income | (214) | |||
Issuances, Sales, Maturities, Settlements, Calls, Net | 142 | |||
Ending Fair Value | 456 | 456 | ||
Indexed Annuity And IUL Contracts [Member] | Future Contract Benefits [Member] | ||||
Level 3 Unobservable Input Reconciliation | ||||
Beginning Fair Value | (3,366) | (4,783) | (6,131) | |
Items Included in Net Income | 394 | (1,669) | 3,244 | |
Issuances, Sales, Maturities, Settlements, Calls, Net | (222) | (722) | (307) | |
Ending Fair Value | (7,174) | $ (3,194) | (7,174) | $ (3,194) |
Policyholder Account Balances [Member] | ||||
Level 3 Unobservable Input Reconciliation | ||||
Beginning Fair Value | (7,600) | |||
Items Included in Net Income | 621 | |||
Issuances, Sales, Maturities, Settlements, Calls, Net | (195) | |||
Ending Fair Value | $ (7,174) | $ (7,174) |
Fair Value of Financial Instr_8
Fair Value of Financial Instruments (Schedule Of Investment Holdings Movements) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | ||||
Issuances | $ 521 | $ 298 | $ 1,847 | $ 1,905 |
Sales | (47) | (139) | (322) | (465) |
Maturities | (1) | (50) | (35) | (74) |
Settlements | (120) | (194) | (635) | (632) |
Calls | (8) | (13) | (46) | |
Total | 353 | (93) | 842 | 688 |
Corporate Bonds [Member] | ||||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | ||||
Issuances | 435 | 207 | 1,825 | 1,105 |
Sales | (47) | (138) | (164) | (236) |
Maturities | (50) | (34) | (74) | |
Settlements | (35) | (51) | (314) | (179) |
Calls | (2) | (11) | (33) | |
Total | 353 | (34) | 1,302 | 583 |
RMBS [Member] | ||||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | ||||
Issuances | 9 | 5 | 21 | |
Total | 9 | 5 | 21 | |
CMBS [Member] | ||||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | ||||
Issuances | 17 | |||
Settlements | (4) | |||
Total | (4) | 17 | ||
ABS [Member] | ||||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | ||||
Issuances | 279 | 213 | 736 | 768 |
Sales | (2) | |||
Settlements | (32) | (90) | (167) | (185) |
Calls | (7) | |||
Total | 247 | 123 | 567 | 576 |
State And Municipal Bonds [Member] | ||||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | ||||
Sales | (1) | |||
Total | (1) | |||
Hybrid And Redeemable Preferred Securities [Member] | ||||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | ||||
Calls | (6) | (2) | (6) | |
Total | (6) | (2) | (6) | |
Mortgage Loans On Real Estate [Member] | ||||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | ||||
Issuances | 1 | 2 | 5 | 14 |
Settlements | (89) | (30) | (179) | (232) |
Total | (88) | (28) | (174) | (218) |
Trading Securities [Member] | ||||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | ||||
Issuances | 11 | 282 | ||
Sales | (155) | (220) | ||
Settlements | (4) | (8) | (81) | (205) |
Total | (4) | 3 | (236) | (143) |
Equity Securities [Member] | ||||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | ||||
Issuances | 1 | 32 | ||
Sales | (1) | (9) | ||
Total | (1) | 1 | 23 | |
Derivative Investments [Member] | ||||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | ||||
Issuances | 9 | 9 | ||
Maturities | (1) | (1) | ||
Total | 8 | 8 | ||
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 | 28 | 37 | 112 | 76 |
Settlements | 4 | 26 | (14) | 66 |
Total | 32 | 63 | 98 | 142 |
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 | (231) | (181) | (846) | (410) |
Settlements | 36 | (41) | 124 | 103 |
Total | $ (195) | $ (222) | $ (722) | $ (307) |
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 | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
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 | $ 965 | $ (22) | $ 835 | $ (956) |
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 | (3) | (23) | (2) | (81) |
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 | 12 | 23 | (17) | 54 |
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 | 2 | (1) | (1) | (16) |
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 | (25) | 2 | (27) | 5 |
MRBs [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 | 1,001 | 56 | 1,133 | (795) |
Other Assets - 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 | (18) | (24) | (28) | (127) |
Indexed Annuity And IUL Contracts [Member] | ||||
Changes in unrealized gains (losses) within Level 3 financial instruments carried at fair value and still held | ||||
Change in unrealized gains (losses) included in net income | $ (4) | $ (55) | $ (223) | $ 4 |
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 | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Fair Value Assets And Liabilities Measured On Recurring Basis Level 3 Activity [Line Items] | ||||
Unrealized gains (losses) included in OCI, net | $ (26) | $ (597) | $ (8) | $ (1,664) |
Corporate Bonds [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring Basis Level 3 Activity [Line Items] | ||||
Unrealized gains (losses) included in OCI, net | (17) | (517) | (5) | (1,521) |
Foreign Government Bonds [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring Basis Level 3 Activity [Line Items] | ||||
Unrealized gains (losses) included in OCI, net | (2) | (7) | ||
ABS [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring Basis Level 3 Activity [Line Items] | ||||
Unrealized gains (losses) included in OCI, net | (5) | (39) | (4) | (101) |
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 | (35) | (2) | (25) | |
Mortgage Loans On Real Estate [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring Basis Level 3 Activity [Line Items] | ||||
Unrealized gains (losses) included in OCI, net | (3) | $ (4) | 1 | $ (10) |
RMBS [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring Basis Level 3 Activity [Line Items] | ||||
Unrealized gains (losses) included in OCI, net | $ (1) | (1) | ||
State And Municipal Bonds [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring Basis Level 3 Activity [Line Items] | ||||
Unrealized gains (losses) included in OCI, net | $ 3 |
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 | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | ||||
Transfers Into Level 3 | $ 54 | $ 56 | $ 265 | $ 285 |
Transfers Out of Level 3 | (210) | (217) | (562) | (491) |
Total | (156) | (161) | (297) | (206) |
Corporate Bonds [Member] | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | ||||
Transfers Into Level 3 | 36 | 37 | 194 | 265 |
Transfers Out of Level 3 | (79) | (53) | (198) | (167) |
Total | (43) | (16) | (4) | 98 |
RMBS [Member] | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | ||||
Transfers Into Level 3 | 12 | 12 | ||
Transfers Out of Level 3 | (5) | (5) | (14) | |
Total | 7 | 7 | (14) | |
CMBS [Member] | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | ||||
Transfers Into Level 3 | 4 | |||
Transfers Out of Level 3 | (17) | |||
Total | 4 | (17) | ||
ABS [Member] | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | ||||
Transfers Into Level 3 | 15 | 2 | 16 | |
Transfers Out of Level 3 | (113) | (162) | (346) | (273) |
Total | (113) | (147) | (344) | (257) |
Hybrid And Redeemable Preferred Securities [Member] | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | ||||
Transfers Into Level 3 | 16 | |||
Transfers Out of Level 3 | (13) | (13) | ||
Total | (13) | 3 | ||
Trading Securities [Member] | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | ||||
Transfers Into Level 3 | 6 | 4 | 6 | 4 |
Transfers Out of Level 3 | (1) | (5) | ||
Total | $ 6 | 3 | 6 | (1) |
Derivative Investments [Member] | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | ||||
Transfers Into Level 3 | 31 | |||
Transfers Out of Level 3 | (1) | (15) | ||
Total | $ (1) | $ 31 | $ (15) |
Fair Value of Financial Inst_12
Fair Value of Financial Instruments (Fair Value Inputs Quantitative Information) (Details) $ in Millions | Sep. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Discounted Cash Flow Valuation Technique [Member] | Ceded MRBs [Member] | Minimum [Member] | Other Assets [Member] | Utilization Of Guaranteed Withdrawals [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative assets, measurement input | 85 | |
Discounted Cash Flow Valuation Technique [Member] | Ceded MRBs [Member] | Maximum [Member] | Other Assets [Member] | Utilization Of Guaranteed Withdrawals [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative assets, measurement input | 100 | |
Discounted Cash Flow Valuation Technique [Member] | Ceded MRBs [Member] | Weighted Average [Member] | Other Assets [Member] | NPR [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative assets, measurement input | 1.73 | |
Discounted Cash Flow Valuation Technique [Member] | GLB Direct Embedded Derivatives [Member] | Minimum [Member] | Other Liabilities [Member] | Utilization Of Guaranteed Withdrawals [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative liability, measurement input | 85 | |
Discounted Cash Flow Valuation Technique [Member] | GLB Direct Embedded Derivatives [Member] | Maximum [Member] | Other Liabilities [Member] | Utilization Of Guaranteed Withdrawals [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative liability, measurement input | 100 | |
Significant Unobservable Inputs (Level 3) [Member] | LPR Ceded Derivative [Member] | ||
Assets Fair Value Disclosure [Abstract] | ||
Assets Fair Value Disclosure | $ 184 | |
Significant Unobservable Inputs (Level 3) [Member] | LPR Ceded Derivative [Member] | Minimum [Member] | Other Assets [Member] | Long-term Lapse Rate [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative assets, measurement input | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | LPR Ceded Derivative [Member] | Minimum [Member] | Other Assets [Member] | NPR [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative assets, measurement input | 0.74 | 0.35 |
Significant Unobservable Inputs (Level 3) [Member] | LPR Ceded Derivative [Member] | Maximum [Member] | Other Assets [Member] | Long-term Lapse Rate [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative assets, measurement input | 1.55 | 1.55 |
Significant Unobservable Inputs (Level 3) [Member] | LPR Ceded Derivative [Member] | Maximum [Member] | Other Assets [Member] | NPR [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative assets, measurement input | 2.56 | 2.41 |
Significant Unobservable Inputs (Level 3) [Member] | LPR Ceded Derivative [Member] | Weighted Average [Member] | Other Assets [Member] | NPR [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative assets, measurement input | 1.94 | 1.75 |
Significant Unobservable Inputs (Level 3) [Member] | Ceded MRBs [Member] | Weighted Average [Member] | Other Liabilities [Member] | Utilization Of Guaranteed Withdrawals [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative liability, measurement input | 94 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | MRBs Assets [Member] | ||
Assets Fair Value Disclosure [Abstract] | ||
Assets Fair Value Disclosure | $ 4,108 | $ 2,807 |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Fixed Maturity AFS Securities [Member] | Corporate Bonds [Member] | ||
Assets Fair Value Disclosure [Abstract] | ||
Assets Fair Value Disclosure | 186 | 201 |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Fixed Maturity AFS Securities [Member] | State And Municipal Bonds [Member] | ||
Assets Fair Value Disclosure [Abstract] | ||
Assets Fair Value Disclosure | 33 | 35 |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Fixed Maturity AFS Securities [Member] | ABS [Member] | ||
Assets Fair Value Disclosure [Abstract] | ||
Assets Fair Value Disclosure | 13 | 15 |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Fixed Maturity AFS Securities [Member] | Hybrid And Redeemable Preferred Securities [Member] | ||
Assets Fair Value Disclosure [Abstract] | ||
Assets Fair Value Disclosure | $ 7 | $ 3 |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Fixed Maturity AFS Securities [Member] | Minimum [Member] | Corporate Bonds [Member] | Liquidity/Duration Adjustment [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Fixed maturity AFS and trading securities, measurement input | (0.1) | (0.2) |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Fixed Maturity AFS Securities [Member] | Minimum [Member] | State And Municipal Bonds [Member] | Liquidity/Duration Adjustment [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Fixed maturity AFS and trading securities, measurement input | 0.8 | 1.2 |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Fixed Maturity AFS Securities [Member] | Minimum [Member] | ABS [Member] | Liquidity/Duration Adjustment [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Fixed maturity AFS and trading securities, measurement input | 1.7 | 1.4 |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Fixed Maturity AFS Securities [Member] | Minimum [Member] | Hybrid And Redeemable Preferred Securities [Member] | Liquidity/Duration Adjustment [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Fixed maturity AFS and trading securities, measurement input | 1.3 | 1.5 |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Fixed Maturity AFS Securities [Member] | Maximum [Member] | Corporate Bonds [Member] | Liquidity/Duration Adjustment [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Fixed maturity AFS and trading securities, measurement input | 3.7 | 4.2 |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Fixed Maturity AFS Securities [Member] | Maximum [Member] | State And Municipal Bonds [Member] | Liquidity/Duration Adjustment [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Fixed maturity AFS and trading securities, measurement input | 1.9 | 2.4 |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Fixed Maturity AFS Securities [Member] | Maximum [Member] | ABS [Member] | Liquidity/Duration Adjustment [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Fixed maturity AFS and trading securities, measurement input | 1.7 | 1.4 |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Fixed Maturity AFS Securities [Member] | Maximum [Member] | Hybrid And Redeemable Preferred Securities [Member] | Liquidity/Duration Adjustment [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Fixed maturity AFS and trading securities, measurement input | 1.5 | 1.5 |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Fixed Maturity AFS Securities [Member] | Weighted Average [Member] | Corporate Bonds [Member] | Liquidity/Duration Adjustment [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Fixed maturity AFS and trading securities, measurement input | 2 | 2.1 |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Fixed Maturity AFS Securities [Member] | Weighted Average [Member] | State And Municipal Bonds [Member] | Liquidity/Duration Adjustment [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Fixed maturity AFS and trading securities, measurement input | 1.8 | 2.3 |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Fixed Maturity AFS Securities [Member] | Weighted Average [Member] | ABS [Member] | Liquidity/Duration Adjustment [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Fixed maturity AFS and trading securities, measurement input | 1.7 | 1.4 |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Fixed Maturity AFS Securities [Member] | Weighted Average [Member] | Hybrid And Redeemable Preferred Securities [Member] | Liquidity/Duration Adjustment [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Fixed maturity AFS and trading securities, measurement input | 1.4 | 1.5 |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Equity Securities [Member] | ||
Assets Fair Value Disclosure [Abstract] | ||
Assets Fair Value Disclosure | $ 4 | $ 4 |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Equity Securities [Member] | Minimum [Member] | Liquidity/Duration Adjustment [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Equity securities, measurement input | 4.5 | 4.5 |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Equity Securities [Member] | Maximum [Member] | Liquidity/Duration Adjustment [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Equity securities, measurement input | 4.5 | 4.5 |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Equity Securities [Member] | Weighted Average [Member] | Liquidity/Duration Adjustment [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Equity securities, measurement input | 4.5 | 4.5 |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Ceded MRBs [Member] | Other Assets [Member] | ||
Assets Fair Value Disclosure [Abstract] | ||
Assets Fair Value Disclosure | $ 273 | $ 540 |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Ceded MRBs [Member] | Other Assets [Member] | Long-term Lapse Rate [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative assets, measurement input | 30 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Ceded MRBs [Member] | Minimum [Member] | Other Assets [Member] | Long-term Lapse Rate [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative assets, measurement input | 1 | 1 |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Ceded MRBs [Member] | Minimum [Member] | Other Assets [Member] | Utilization Of Guaranteed Withdrawals [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative assets, measurement input | 85 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Ceded MRBs [Member] | Minimum [Member] | Other Assets [Member] | Claims Utilization Factor [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative assets, measurement input | 60 | 60 |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Ceded MRBs [Member] | Minimum [Member] | Other Assets [Member] | Premiums Utilization Factor [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative assets, measurement input | 80 | 80 |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Ceded MRBs [Member] | Minimum [Member] | Other Assets [Member] | NPR [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative assets, measurement input | 0.74 | 0.35 |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Ceded MRBs [Member] | Minimum [Member] | Other Assets [Member] | Volatility [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative assets, measurement input | 1 | 1 |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Ceded MRBs [Member] | Maximum [Member] | Other Assets [Member] | Long-term Lapse Rate [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative assets, measurement input | 30 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Ceded MRBs [Member] | Maximum [Member] | Other Assets [Member] | Utilization Of Guaranteed Withdrawals [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative assets, measurement input | 100 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Ceded MRBs [Member] | Maximum [Member] | Other Assets [Member] | Claims Utilization Factor [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative assets, measurement input | 100 | 100 |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Ceded MRBs [Member] | Maximum [Member] | Other Assets [Member] | Premiums Utilization Factor [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative assets, measurement input | 115 | 115 |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Ceded MRBs [Member] | Maximum [Member] | Other Assets [Member] | NPR [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative assets, measurement input | 2.56 | 2.41 |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Ceded MRBs [Member] | Maximum [Member] | Other Assets [Member] | Volatility [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative assets, measurement input | 29 | 28 |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Ceded MRBs [Member] | Weighted Average [Member] | Other Assets [Member] | Utilization Of Guaranteed Withdrawals [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative assets, measurement input | 94 | 94 |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Ceded MRBs [Member] | Weighted Average [Member] | Other Assets [Member] | NPR [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative assets, measurement input | 2.15 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Ceded MRBs [Member] | Weighted Average [Member] | Other Assets [Member] | Volatility [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative assets, measurement input | 13.65 | 14.47 |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | MRBs Liabilities [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Liabilities measured at fair value | $ (1,385) | $ (2,078) |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Indexed Annuity Ceded Embedded Derivatives [Member] | Other Assets [Member] | ||
Assets Fair Value Disclosure [Abstract] | ||
Assets Fair Value Disclosure | $ 586 | $ 525 |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Indexed Annuity Ceded Embedded Derivatives [Member] | Minimum [Member] | Other Assets [Member] | Long-term Lapse Rate [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative assets, measurement input | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Indexed Annuity Ceded Embedded Derivatives [Member] | Maximum [Member] | Other Assets [Member] | Long-term Lapse Rate [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative assets, measurement input | 9 | 9 |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | LPR Ceded Derivative [Member] | Other Assets [Member] | ||
Assets Fair Value Disclosure [Abstract] | ||
Assets Fair Value Disclosure | $ 212 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | GLB Direct Embedded Derivatives [Member] | Other Liabilities [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Liabilities measured at fair value | $ (1,736) | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | GLB Direct Embedded Derivatives [Member] | Minimum [Member] | Other Liabilities [Member] | Long-term Lapse Rate [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative liability, measurement input | 1 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | GLB Direct Embedded Derivatives [Member] | Minimum [Member] | Other Liabilities [Member] | Claims Utilization Factor [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative liability, measurement input | 60 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | GLB Direct Embedded Derivatives [Member] | Minimum [Member] | Other Liabilities [Member] | Premiums Utilization Factor [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative liability, measurement input | 80 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | GLB Direct Embedded Derivatives [Member] | Minimum [Member] | Other Liabilities [Member] | NPR [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative liability, measurement input | 0.74 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | GLB Direct Embedded Derivatives [Member] | Minimum [Member] | Other Liabilities [Member] | Volatility [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative liability, measurement input | 1 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | GLB Direct Embedded Derivatives [Member] | Maximum [Member] | Other Liabilities [Member] | Long-term Lapse Rate [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative liability, measurement input | 30 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | GLB Direct Embedded Derivatives [Member] | Maximum [Member] | Other Liabilities [Member] | Claims Utilization Factor [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative liability, measurement input | 100 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | GLB Direct Embedded Derivatives [Member] | Maximum [Member] | Other Liabilities [Member] | Premiums Utilization Factor [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative liability, measurement input | 115 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | GLB Direct Embedded Derivatives [Member] | Maximum [Member] | Other Liabilities [Member] | NPR [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative liability, measurement input | 2.56 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | GLB Direct Embedded Derivatives [Member] | Maximum [Member] | Other Liabilities [Member] | Volatility [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative liability, measurement input | 29 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | GLB Direct Embedded Derivatives [Member] | Weighted Average [Member] | Other Liabilities [Member] | Utilization Of Guaranteed Withdrawals [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative liability, measurement input | 94 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | GLB Direct Embedded Derivatives [Member] | Weighted Average [Member] | Other Liabilities [Member] | NPR [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative liability, measurement input | 2.15 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | GLB Direct Embedded Derivatives [Member] | Weighted Average [Member] | Other Liabilities [Member] | Volatility [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative liability, measurement input | 13.65 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Policyholder Account Balances [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Liabilities measured at fair value | $ (4,845) | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Policyholder Account Balances [Member] | Minimum [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative liability, measurement input | 0 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Policyholder Account Balances [Member] | Maximum [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative liability, measurement input | 9 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Ceded MRBs [Member] | Other Liabilities [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Liabilities measured at fair value | $ (246) | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Ceded MRBs [Member] | Minimum [Member] | Other Liabilities [Member] | Long-term Lapse Rate [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative liability, measurement input | 1 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Ceded MRBs [Member] | Minimum [Member] | Other Liabilities [Member] | Utilization Of Guaranteed Withdrawals [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative liability, measurement input | 85 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Ceded MRBs [Member] | Minimum [Member] | Other Liabilities [Member] | Claims Utilization Factor [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative liability, measurement input | 60 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Ceded MRBs [Member] | Minimum [Member] | Other Liabilities [Member] | Premiums Utilization Factor [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative liability, measurement input | 80 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Ceded MRBs [Member] | Minimum [Member] | Other Liabilities [Member] | NPR [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative liability, measurement input | 0.35 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Ceded MRBs [Member] | Minimum [Member] | Other Liabilities [Member] | Volatility [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative liability, measurement input | 1 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Ceded MRBs [Member] | Maximum [Member] | Other Liabilities [Member] | Long-term Lapse Rate [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative liability, measurement input | 30 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Ceded MRBs [Member] | Maximum [Member] | Other Liabilities [Member] | Utilization Of Guaranteed Withdrawals [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative liability, measurement input | 100 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Ceded MRBs [Member] | Maximum [Member] | Other Liabilities [Member] | Claims Utilization Factor [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative liability, measurement input | 100 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Ceded MRBs [Member] | Maximum [Member] | Other Liabilities [Member] | Premiums Utilization Factor [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative liability, measurement input | 115 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Ceded MRBs [Member] | Maximum [Member] | Other Liabilities [Member] | NPR [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative liability, measurement input | 2.41 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Ceded MRBs [Member] | Maximum [Member] | Other Liabilities [Member] | Volatility [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative liability, measurement input | 28 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Ceded MRBs [Member] | Weighted Average [Member] | Other Liabilities [Member] | NPR [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative liability, measurement input | 1.73 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Ceded MRBs [Member] | Weighted Average [Member] | Other Liabilities [Member] | Volatility [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative liability, measurement input | 14.47 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Future Contract Benefits - Indexed Annuity Embedded Derivatives [Member] | Future Contract Benefits [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Liabilities measured at fair value | $ (7,163) | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Future Contract Benefits - Indexed Annuity Embedded Derivatives [Member] | Minimum [Member] | Future Contract Benefits [Member] | Long-term Lapse Rate [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative liability, measurement input | 0 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Future Contract Benefits - Indexed Annuity Embedded Derivatives [Member] | Maximum [Member] | Future Contract Benefits [Member] | Long-term Lapse Rate [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative liability, measurement input | 9 |
Contingencies and Commitments (
Contingencies and Commitments (Narrative) (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Mar. 24, 2023 |
Loss Contingencies [Line Items] | ||
Loss contingency, estimate | $ 190,000 | $ 117,750 |
Lincoln National COI Litigation [Member] | ||
Loss Contingencies [Line Items] | ||
Loss contingency, estimate | 109,960 | $ 117,750 |
Lincoln National COI Rate Litigation [Member] | ||
Loss Contingencies [Line Items] | ||
Loss contingency, estimate | $ 109,960 |
Shares and Stockholder's Equi_3
Shares and Stockholder's Equity (Components And Changes In Accumulated OCI) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance | $ 8,604 | |
Less: | ||
Balance | 7,318 | $ 6,884 |
Unrealized Gain (Loss) on AFS Securities [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance | (8,526) | 9,153 |
Income tax benefit (expense) | 478 | 5,159 |
Less: | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | (3,704) | (9) |
Income tax benefit (expense) | 778 | 2 |
Balance | (7,433) | (9,834) |
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 | (2,781) | (25,928) |
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 | (21) | (620) |
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 | 491 | 2,395 |
Unrealized Gain (Loss) on Derivative Instruments [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance | 301 | 258 |
Income tax benefit (expense) | (9) | (87) |
Less: | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 46 | 78 |
Income tax benefit (expense) | (10) | (16) |
Balance | 296 | 518 |
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 | 10 | (214) |
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 | 30 | 623 |
Market Risk Benefit Non-Performance Risk Gain (Loss) [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance | 1,739 | 1,951 |
Income tax benefit (expense) | 202 | (61) |
Less: | ||
Balance | 997 | 2,175 |
Market Risk Benefit Non-Performance Risk Gain (Loss) [Member] | Gains (Losses) Arising During the Year [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other comprehensive income (loss) before reclassifications and taxes | (944) | 285 |
Policyholder Liability Discount Rate Remeasurement Gain (Loss) [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance | 790 | (1,101) |
Income tax benefit (expense) | (69) | (527) |
Less: | ||
Balance | 1,047 | 842 |
Policyholder Liability Discount Rate Remeasurement Gain (Loss) [Member] | Gains (Losses) Arising During the Year [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other comprehensive income (loss) before reclassifications and taxes | 326 | 2,470 |
Funded Status of Employee Benefit Plans [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance | (17) | (11) |
Less: | ||
Balance | $ (17) | $ (11) |
Shares and Stockholder's Equi_4
Shares and Stockholder's Equity (Schedule of Reclassifications Out Of AOCI) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net investment income | $ 1,466 | $ 1,241 | $ 4,351 | $ 3,931 |
Realized gain (loss) | (867) | 33 | (4,513) | 541 |
Commissions and other expenses | (1,275) | (1,219) | (3,805) | (3,591) |
Income (loss) from continuing operations before taxes | 352 | (2,780) | (2,133) | (2,574) |
Income tax benefit (expense) | (37) | 488 | 564 | 500 |
Net income (loss) | $ 315 | $ (2,292) | (1,569) | (2,074) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Unrealized Gain (Loss) on AFS Securities [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Income (loss) from continuing operations before taxes | (3,704) | (9) | ||
Income tax benefit (expense) | 778 | 2 | ||
Net income (loss) | (2,926) | (7) | ||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Unrealized Gain (Loss) on Derivative Instruments [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Income (loss) from continuing operations before taxes | 46 | 78 | ||
Income tax benefit (expense) | (10) | (16) | ||
Net income (loss) | 36 | 62 | ||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Gross Reclassification [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Benefits | 589 | |||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Gross Reclassification [Member] | Unrealized Gain (Loss) on AFS Securities [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Realized gain (loss) | (4,293) | (9) | ||
Reclassification out of Accumulated Other Comprehensive Income [Member] | 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 | |||
Reclassification out of Accumulated Other Comprehensive Income [Member] | 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 | 42 | 48 | ||
Realized gain (loss) | $ 4 | $ 29 |
Segment Information (Reconcilia
Segment Information (Reconciliation Of Revenue From Segments To Consolidated) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Segment Reporting Information [Line Items] | ||||
Total revenues | $ 3,577 | $ 4,265 | $ 8,841 | $ 13,355 |
Investment and Reinsurance Related Realized gain (Loss) [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 268 | 192 | 154 | 725 |
GLB Rider Fees Ceded To LNBAR [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | (227) | (231) | (694) | (701) |
Credit loss-related adjustments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | (25) | (132) | (50) | (120) |
Investment Gains (Losses) [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | (1,091) | 13 | (4,228) | 4 |
Life Insurance Segment [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 1,627 | 1,536 | 4,920 | 4,756 |
Annuities [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 1,095 | 1,021 | 3,236 | 3,071 |
Group Protection [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 1,387 | 1,332 | 4,174 | 3,958 |
Retirement Plan Services [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 321 | 312 | 972 | 936 |
Other Operations [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 32 | 28 | 106 | 93 |
Changes In Fair Value of Reinsurance-Related Embedded Derivatives Trading Securities and Certain Mortage Loans [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | $ 190 | $ 193 | $ 251 | $ 633 |
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 | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | ||||
Net income (loss) | $ 315 | $ (2,292) | $ (1,569) | $ (2,074) |
Asset impairment | 1,200 | 4,200 | ||
Asset impairment charges, net of tax | 909,000 | 3,300 | ||
Intent To sell impairments, fixed maturity AFS, unrealized gain position. | 168 | |||
Net Annuity Product Features, After-Tax [Member] | ||||
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | ||||
Net income (loss) | 951 | 184 | 1,212 | (56) |
Net Life Insurance Product Features, After-Tax [Member] | ||||
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | ||||
Net income (loss) | 196 | 20 | 308 | 16 |
Changes in Fair Value of Reinsurance-Related Embedded Derivatives Trading Securities and Certain Mortgage Loans, After-Tax [Member] | ||||
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | ||||
Net income (loss) | 151 | 152 | 198 | 500 |
Transaction and Integration Costs Related to Mergers, Acquisitions and Divestitures, After-Tax [Member] | ||||
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | ||||
Net income (loss) | (7) | |||
Operating Segments [Member] | Life Insurance Segment [Member] | ||||
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | ||||
Net income (loss) | (152) | (1,945) | (152) | (1,946) |
Operating Segments [Member] | Annuities [Member] | ||||
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | ||||
Net income (loss) | 190 | 225 | 626 | 727 |
Operating Segments [Member] | Group Protection [Member] | ||||
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | ||||
Net income (loss) | 67 | 12 | 246 | 15 |
Operating Segments [Member] | Retirement Plan Services [Member] | ||||
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | ||||
Net income (loss) | 39 | 43 | 120 | 149 |
Operating Segments [Member] | Other Operations [Member] | ||||
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | ||||
Net income (loss) | (76) | (73) | (203) | (199) |
GLB Rider Fees Ceded To LNBAR [Member] | ||||
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | ||||
Net income (loss) | (179) | (182) | (547) | (554) |
Benefit Ratio Unlocking, After-Tax [Member] | Fortitude Re [Member] | ||||
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | ||||
Asset impairment | 128 | 458 | ||
Impairment of Intangibles, After-Tax [Member] | ||||
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | ||||
Net income (loss) | (634) | (634) | ||
Credit Loss-Related Adjustments, After-Tax [Member] | ||||
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | ||||
Net income (loss) | (20) | (104) | (40) | (95) |
Investment Gains (Losses), After-Tax [Member] | ||||
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | ||||
Net income (loss) | $ (852) | $ 10 | $ (3,330) | $ 3 |
Segment Information (Reconcil_3
Segment Information (Reconciliation of Assets From Segments to Consolidated Balance Sheet) (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Schedule Of Segment Reporting And Reconciliation [Line Items] | ||
Total assets | $ 343,555 | $ 335,663 |
Life Insurance Segment [Member] | ||
Schedule Of Segment Reporting And Reconciliation [Line Items] | ||
Total assets | 97,466 | 97,412 |
Annuities Segment [Member] | ||
Schedule Of Segment Reporting And Reconciliation [Line Items] | ||
Total assets | 173,558 | 165,711 |
Group Protection Segment [Member] | ||
Schedule Of Segment Reporting And Reconciliation [Line Items] | ||
Total assets | 9,450 | 9,828 |
Retirement Plan Services Segment [Member] | ||
Schedule Of Segment Reporting And Reconciliation [Line Items] | ||
Total assets | 41,821 | 42,117 |
Other Operations [Member] | ||
Schedule Of Segment Reporting And Reconciliation [Line Items] | ||
Total assets | $ 21,260 | $ 20,595 |
Realized Gain (Loss) (Details)
Realized Gain (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Realized gain (loss) related to certain investments | ||||
AFS securities. Gross gains | $ 1 | $ 10 | $ 34 | $ 14 |
AFS securities. Gross losses | (3) | (14) | (114) | (23) |
Realized gain (loss) on equity securities | 8 | 16 | (20) | (5) |
Credit loss benefit (expense) | (1) | (5) | (16) | (11) |
Intent to sell impairments | (1,150) | (4,213) | ||
Realized gain (loss) on the mark-to-market on certain instruments | 341 | 250 | 136 | 715 |
Indexed product derivative results | 4 | (25) | (199) | 113 |
GLB rider fees ceded to LNBAR | (227) | (231) | (693) | (701) |
GLB and GDB hedge allowance | 201 | 187 | 610 | 583 |
Realized gain (loss) on sale of subsidiaries/businesses | (17) | (29) | (3) | (34) |
Total realized gain (loss) | (867) | 33 | (4,513) | 541 |
Intent to sell impairments, unrealized gain position | 212 | |||
Mortgage Loans On Real Estate [Member] | ||||
Realized gain (loss) related to certain investments | ||||
Credit loss benefit (expense) | (9) | (9) | (16) | 5 |
Realized gain (loss) on the mark-to-market on certain instruments | 2 | (1) | 1 | (18) |
Reinsurance Related Assets [Member] | ||||
Realized gain (loss) related to certain investments | ||||
Credit loss benefit (expense) | (15) | (117) | (19) | (115) |
Equity Securities [Member] | ||||
Realized gain (loss) related to certain investments | ||||
Realized gain (loss) on equity securities | $ 9 | $ 16 | $ (22) | $ 1 |
Federal Income Taxes (Narrative
Federal Income Taxes (Narrative) (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Federal Income Taxes [Abstract] | ||||
Effective tax rate | 11% | 18% | 26% | 19% |
Federal statutory rate | 21% | 21% | 21% |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Sep. 30, 2023 | |
Insider Trading Arrangements [Line Items] | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |