Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Audit Information [Abstract] | |
Auditor Firm ID | 42 |
Auditor Name | Ernst & Young LLP |
Auditor Location | Philadelphia, Pennsylvania |
Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Mar. 15, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 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 Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | false | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 0 | ||
Entity Common Stock, Shares Outstanding | 10,000,000 | ||
Documents Incorporated by Reference | None | ||
Entity Central Index Key | 0000726865 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Investments [Abstract] | ||
Fixed maturity available-for-sale securities, at fair value | $ 82,300 | $ 99,465 |
Trading securities | 2,321 | 3,446 |
Equity securities | 306 | 427 |
Mortgage loans on real estate, net of allowance for credit losses | 18,873 | 18,211 |
Policy loans | 2,463 | 2,345 |
Derivative investments | 6,305 | 3,519 |
Other investments | 4,757 | 3,577 |
Total investments | 117,325 | 130,990 |
Cash and invested cash | 3,193 | 2,499 |
Deferred acquisition costs, value of business acquired and deferred sales inducements | 12,418 | 12,263 |
Reinsurance recoverables, net of allowance for credit losses | 45,110 | 21,804 |
Deposit assets, net of allowance for credit losses | 21,056 | 11,628 |
Market risk benefit assets | 3,894 | 2,807 |
Accrued investment income | 982 | 1,234 |
Goodwill | 1,144 | 1,144 |
Other assets | 10,597 | 7,677 |
Separate account assets | 158,257 | 143,536 |
Total assets | 373,976 | 335,582 |
Liabilities | ||
Policyholder account balances | 120,316 | 113,972 |
Future contract benefits | 40,174 | 38,302 |
Funds withheld reinsurance liabilities | 13,628 | 8,255 |
Market risk benefit liabilities | 1,716 | 2,078 |
Deferred front-end loads | 5,923 | 5,115 |
Payables for collateral on investments | 7,982 | 6,638 |
Short-term debt | 840 | 562 |
Long-term debt | 2,195 | 2,269 |
Other liabilities | 12,438 | 6,251 |
Separate account liabilities | 158,257 | 143,536 |
Total liabilities | 363,469 | 326,978 |
Contingencies and Commitments (See Note 18) | ||
Stockholder’s Equity | ||
Common stock – 10,000,000 shares authorized, issued and outstanding | 12,961 | 12,903 |
Retained earnings | (869) | 1,414 |
Accumulated other comprehensive income (loss) | (1,585) | (5,713) |
Total stockholder’s equity | 10,507 | 8,604 |
Total liabilities and stockholder’s equity | $ 373,976 | $ 335,582 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Fixed maturity available-for-sale securities, at fair value | ||
Amortized cost | $ 88,231 | $ 110,944 |
Allowance for credit losses | 19 | 21 |
Mortgage loans on real estate, net of allowance for credit losses | ||
Fair value | $ 288 | $ 487 |
Stockholder’s Equity | ||
Common stock - authorized (in shares) | 10,000,000 | 10,000,000 |
Common stock - issued (in shares) | 10,000,000 | 10,000,000 |
Common stock - outstanding (in shares) | 10,000,000 | 10,000,000 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenues | |||
Insurance premiums | $ 3,416 | $ 5,841 | $ 5,359 |
Fee income | 5,168 | 5,366 | 5,766 |
Net investment income | 5,712 | 5,274 | 5,839 |
Realized gain (loss) | (4,934) | 418 | 859 |
Amortization of deferred gain (loss) on business sold through reinsurance | 48 | 37 | 32 |
Other revenues | 649 | 621 | 657 |
Total revenues | 10,059 | 17,557 | 18,512 |
Expenses | |||
Benefits | 5,028 | 8,203 | 8,027 |
Interest credited | 3,202 | 2,860 | 2,912 |
Market risk benefit (gain) loss | (1,135) | 296 | (1,554) |
Policyholder liability remeasurement (gain) loss | (167) | 2,445 | (119) |
Commissions and other expenses | 5,249 | 4,927 | 5,011 |
Interest and debt expense | 190 | 137 | 114 |
Spark program expense | 153 | 167 | 87 |
Impairment of intangibles | 0 | 634 | 0 |
Total expenses | 12,520 | 19,669 | 14,478 |
Income (loss) before taxes | (2,461) | (2,112) | 4,034 |
Federal income tax expense (benefit) | (673) | (437) | 737 |
Net income (loss) | (1,788) | (1,675) | 3,297 |
Other comprehensive income (loss), net of tax: | |||
Unrealized investment gain (loss) | 4,942 | (17,639) | (3,233) |
Market risk benefit non-performance risk gain (loss) | (670) | (211) | (923) |
Policyholder liability discount rate remeasurement gain (loss) | (145) | 1,891 | 560 |
Funded status of employee benefit plans | 1 | (4) | 3 |
Total other comprehensive income (loss), net of tax | 4,128 | (15,963) | (3,593) |
Comprehensive income (loss) | $ 2,340 | $ (17,638) | $ (296) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholder's Equity - USD ($) $ in Millions | Total | Cumulative effect from adoption of new accounting standards | Common Stock | Retained Earnings | Retained Earnings Cumulative effect from adoption of new accounting standards | Accumulated other comprehensive income | Accumulated other comprehensive income Cumulative effect from adoption of new accounting standards |
Balance as of beginning-of-year at Dec. 31, 2020 | $ 4,822 | $ 11,853 | $ 4,167 | $ (1,820) | $ 9,021 | $ 4,822 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Capital contribution from Lincoln National Corporation | 65 | ||||||
Stock compensation/issued for benefit plans | 32 | ||||||
Net income (loss) | $ 3,297 | 3,297 | |||||
Dividends paid to Lincoln National Corporation | (1,910) | ||||||
Other comprehensive income (loss), net of tax | (3,593) | (3,593) | |||||
Balance as of end-of-year at Dec. 31, 2021 | 25,934 | 11,950 | 3,734 | 10,250 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Capital contribution from Lincoln National Corporation | 925 | ||||||
Stock compensation/issued for benefit plans | 28 | ||||||
Net income (loss) | (1,675) | (1,675) | |||||
Dividends paid to Lincoln National Corporation | (645) | ||||||
Other comprehensive income (loss), net of tax | (15,963) | (15,963) | |||||
Balance as of end-of-year at Dec. 31, 2022 | 8,604 | 12,903 | 1,414 | (5,713) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Capital contribution from Lincoln National Corporation | 5 | ||||||
Stock compensation/issued for benefit plans | 53 | ||||||
Net income (loss) | (1,788) | (1,788) | |||||
Dividends paid to Lincoln National Corporation | (495) | ||||||
Other comprehensive income (loss), net of tax | 4,128 | 4,128 | |||||
Balance as of end-of-year at Dec. 31, 2023 | $ 10,507 | $ 12,961 | $ (869) | $ (1,585) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash Flows from Operating Activities | |||
Net income (loss) | $ (1,788) | $ (1,675) | $ 3,297 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Realized (gain) loss | 4,934 | (418) | (859) |
Market risk benefit (gain) loss | (1,135) | 296 | (1,554) |
Sales and maturities (purchases) of trading securities, net | 1,302 | 301 | (87) |
Amortization of deferred gain (loss) on business sold through reinsurance | (48) | (37) | (32) |
Impairment of intangibles | 0 | 634 | 0 |
Net operating cash payments related to closing Fortitude Re reinsurance transaction | (1,457) | 0 | 0 |
Change in: | |||
Deferred acquisition costs, value of business acquired, deferred sales inducements and deferred front-end loads | 642 | 495 | 496 |
Accrued investment income | 34 | (41) | 8 |
Insurance liabilities and reinsurance-related balances | (2,499) | 652 | (893) |
Accrued expenses | 223 | (101) | 377 |
Federal income tax accruals | (563) | (376) | 708 |
Cash management agreement | (733) | 3,730 | (1,286) |
Other | 324 | 406 | (351) |
Net cash provided by (used in) operating activities | (764) | 3,866 | (176) |
Cash Flows from Investing Activities | |||
Purchases of available-for-sale securities and equity securities | (10,713) | (14,768) | (16,856) |
Sales of available-for-sale securities and equity securities | 3,606 | 2,347 | 2,341 |
Maturities of available-for-sale securities | 5,597 | 5,487 | 9,417 |
Purchases of alternative investments | (614) | (631) | (754) |
Sales and repayments of alternative investments | 111 | 441 | 377 |
Issuance of mortgage loans on real estate | (1,943) | (2,507) | (3,057) |
Repayment and maturities of mortgage loans on real estate | 1,266 | 2,247 | 1,873 |
Repayment (issuance) of policy loans, net | (120) | 4 | 61 |
Net change in collateral on investments, certain derivatives and related settlements | (333) | (4,653) | 3,095 |
Other | (352) | (40) | (253) |
Net cash provided by (used in) investing activities | (3,495) | (12,073) | (3,756) |
Cash Flows from Financing Activities | |||
Capital contribution from Lincoln National Corporation | 5 | 925 | 65 |
Payment of long-term debt, including current maturities | 0 | (40) | (60) |
Issuance (payment) of short-term debt | 228 | (522) | 587 |
Payment related to sale-leaseback transactions | (79) | (70) | (59) |
Proceeds from certain financing arrangements | 86 | 186 | 159 |
Payment related to certain financing arrangements | (49) | 0 | 0 |
Net financing cash proceeds related to closing Fortitude Re reinsurance transaction | 133 | 0 | 0 |
Deposits of fixed account balances | 16,388 | 16,186 | 13,409 |
Withdrawals of fixed account balances | (10,633) | (7,641) | (7,142) |
Transfers from (to) separate accounts, net | (624) | 19 | (175) |
Common stock issued for benefit plans | (7) | (21) | (13) |
Dividends paid to Lincoln National Corporation | (495) | (645) | (1,910) |
Other | 0 | (2) | (60) |
Net cash provided by (used in) financing activities | 4,953 | 8,375 | 4,801 |
Net increase (decrease) in cash, invested cash and restricted cash | 694 | 168 | 869 |
Cash, invested cash and restricted cash as of beginning-of-year | 2,499 | 2,331 | 1,462 |
Cash, invested cash and restricted cash as of end-of-year | $ 3,193 | $ 2,499 | $ 2,331 |
Nature of Operations, Basis of
Nature of Operations, Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations, Basis of Presentation and Summary of Significant Accounting Policies | Nature of Operations, Basis of Presentation and Summary of Significant Accounting Policies Nature of Operations The Lincoln National Life Insurance Company (“LNL” or the “Company,” which also may be referred to as “we,” “our” or “us”), a wholly-owned subsidiary of Lincoln National Corporation (“LNC” or the “Parent Company”), is domiciled in the state of Indiana. We own 100% of the outstanding common stock of 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 variable annuities, fixed annuities (including indexed), 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 20 Basis of Presentation The accompanying consolidated financial statements are prepared in accordance with United States of America generally accepted accounting principles (“GAAP”). Certain GAAP policies, which significantly affect the determination of financial condition, results of operations and cash flows, are summarized below. Certain amounts reported in prior year’s Consolidated Balance Sheet have been reclassified to conform to the presentation adopted in the current year. On January 1, 2023, we adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“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 market risk benefits (“MRBs”), which applied the full retrospective approach. Our consolidated financial statements are presented under the new guidance for reporting periods beginning January 1, 2021. 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 variable annuities level of aggregation includes RILA products, which are indexed variable annuities. 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. Sale of Wealth Management Business On December 14, 2023, our parent company LNC announced that it had entered into a Stock Purchase Agreement with Osaic Holdings, Inc., a Delaware corporation (“Osaic”), pursuant to which Osaic agreed to acquire all of the ownership interests in the subsidiaries of LNC that comprise its wealth management business, including our subsidiary Lincoln Financial Advisors Corporation. We anticipate the transaction will close in the first half of 2024, subject to receipt of required regulatory approvals and satisfying other customary closing conditions. As of December 31, 2023, we had assets of $120 million and liabilities of $77 million classified as held-for-sale and reported within other assets and other liabilities, respectively, on our Consolidated Balance Sheets. The assets are reported primarily within Other Operations in Note 20 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 partnerships (“LPs”). 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. 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, goodwill and other intangibles, MRBs, future contract benefits, 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 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”). 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). For debt securities where impairment has been recognized, the difference between the new amortized cost basis and the cash flows expected to be collected are accreted as interest income and recognized in net investment income 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 a |
New Accounting Standards
New Accounting Standards | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
New Accounting Standards | New Accounting Standards The following table provides a description of our adoption of new ASUs issued by the FASB and the impact of the adoption on 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 utilized certain practical expedients under this guidance for contract modifications and to maintain hedge accounting for certain derivatives from the effective date through December 31, 2023. This ASU has not had a material impact to our consolidated financial condition and results of operations to date, and we do not expect future material impacts through the close of the ASU effective date on December 31, 2024. ASU 2018-12, Targeted Improvements to the Accounting for Long-Duration Contracts and related amendments See Note 3 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 On January 1, 2023, we adopted 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 Stockholder’s Equity Retained Earnings AOCI 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: Retained Earnings AOCI Total Stockholder’s 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: Balance Impact from Removal of Shadow Balances Balance 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: Balance Impact from Removal of Shadow Balances Balance 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: Balance Pre-Adoption December 31, 2020 (1) Impact from Removal of Shadow Balances Single-A Discount Cumulative Balance 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: Balance Pre-Adoption December 31, 2020 (1) Single-A Cumulative Balance 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 Pre-Adoption December 31, 2020 (1) Cumulative Cumulative Balance 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 Pre-Adoption December 31, 2020 (1) Cumulative Balance 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 Sheet: As of December 31, 2022 As Previously Reported (1) Adoption As 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 (2) 24,450 (2,646) 21,804 Market risk benefit assets – 2,807 2,807 Other assets (2) 8,831 (1,154) 7,677 Total assets (2) 338,185 (2,603) 335,582 Future contract benefits (2) 41,203 (2,901) 38,302 Market risk benefit liabilities – 2,078 2,078 Deferred front-end loads (2) 5,765 (650) 5,115 Other liabilities (2) 7,719 (1,468) 6,251 Total liabilities (2) 329,919 (2,941) 326,978 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 reported 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”). (2) Certain as previously reported amounts have been reclassified to conform to the current presentation. 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 Year Ended December 31, 2022 For the Year Ended December 31, 2021 As Previously Reported (1) Adoption As Adjusted As Previously Reported (1) Adoption of New Accounting Standard As Adjusted Fee income $ 5,783 $ (417) $ 5,366 $ 6,630 $ (864) $ 5,766 Realized gain (loss) 214 204 418 711 148 859 Total revenues 17,770 (213) 17,557 19,228 (716) 18,512 Benefits 10,801 (2,598) 8,203 8,039 (12) 8,027 Interest credited 2,849 11 2,860 2,911 1 2,912 Market risk benefit (gain) loss – 296 296 – (1,554) (1,554) Policyholder liability remeasurement (gain) – 2,445 2,445 – (119) (119) Commissions and other expenses 4,799 128 4,927 5,548 (537) 5,011 Total expenses 19,387 282 19,669 16,699 (2,221) 14,478 Income (loss) before taxes (1,617) (495) (2,112) 2,529 1,505 4,034 Federal income tax expense (benefit) (332) (105) (437) 420 317 737 Net income (loss) (1,285) (390) (1,675) 2,109 1,188 3,297 Unrealized investment gain (loss) (13,613) (4,026) (17,639) (2,480) (753) (3,233) Market risk benefit non-performance risk gain (loss) – (211) (211) – (923) (923) Policyholder liability discount rate remeasurement gain (loss) – 1,891 1,891 – 560 560 Total other comprehensive income (loss), net of tax (13,617) (2,346) (15,963) (2,477) (1,116) (3,593) Comprehensive income (loss) (14,902) (2,736) (17,638) (368) 72 (296) (1) The amounts as previously reported were reported 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: As of December 31, 2022 As of December 31, 2021 As Previously Reported (1) Adoption As As Previously Reported (1) Adoption As Retained earnings balance as of beginning-of-year $ 4,366 $ (632) $ 3,734 $ 4,167 $ – $ 4,167 Cumulative effect from adoption of new accounting standards – – – – (1,820) (1,820) Net income (loss) (1,285) (390) (1,675) 2,109 1,188 3,297 Retained earnings balance as of end-of-year 2,436 (1,022) 1,414 4,366 (632) 3,734 Accumulated other comprehensive income (loss) balance as of beginning-of-year 6,544 3,706 10,250 9,021 – 9,021 Cumulative effect from adoption of new accounting standards – – – – 4,822 4,822 Other comprehensive income (loss), net of tax (13,617) (2,346) (15,963) (2,477) (1,116) (3,593) Accumulated other comprehensive income (loss) balance as of end-of-year (7,073) 1,360 (5,713) 6,544 3,706 10,250 Total stockholder’s equity as of end-of-year $ 8,266 $ 338 $ 8,604 $ 22,860 $ 3,074 $ 25,934 (1) The amounts as previously reported were reported 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 Cash Flows: For the Year Ended December 31, 2022 As Previously Reported (1) Adoption As Net income (loss) $ (1,285) $ (390) $ (1,675) Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Realized (gain) loss (214) (204) (418) Market risk benefit (gain) loss – 296 296 Change in: Deferred acquisition costs, value of business acquired, deferred sales inducements and deferred front-end loads 45 450 495 Insurance liabilities and reinsurance-related balances (2) 727 (75) 652 Accrued expenses (98) (3) (101) Federal income tax accruals (271) (105) (376) Other (2) 375 31 406 For the Year Ended December 31, 2021 As Previously Reported (1) Adoption As Net income (loss) $ 2,109 $ 1,188 $ 3,297 Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Realized (gain) loss (711) (148) (859) Market risk benefit (gain) loss – (1,554) (1,554) Change in: Deferred acquisition costs, value of business acquired, deferred sales inducements and deferred front-end loads 289 207 496 Insurance liabilities and reinsurance-related balances (2) (862) (31) (893) Accrued expenses 370 7 377 Federal income tax accruals 391 317 708 Other (2) (365) 14 (351) (1) The amounts as previously reported were reported in our 2022 Form 10-K. (2) Certain as previously reported amounts have been reclassified to conform to the current presentation. |
Adoption of ASU 2018-12
Adoption of ASU 2018-12 | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Adoption of ASU 2018-12 | New Accounting Standards The following table provides a description of our adoption of new ASUs issued by the FASB and the impact of the adoption on 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 utilized certain practical expedients under this guidance for contract modifications and to maintain hedge accounting for certain derivatives from the effective date through December 31, 2023. This ASU has not had a material impact to our consolidated financial condition and results of operations to date, and we do not expect future material impacts through the close of the ASU effective date on December 31, 2024. ASU 2018-12, Targeted Improvements to the Accounting for Long-Duration Contracts and related amendments See Note 3 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 On January 1, 2023, we adopted 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 Stockholder’s Equity Retained Earnings AOCI 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: Retained Earnings AOCI Total Stockholder’s 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: Balance Impact from Removal of Shadow Balances Balance 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: Balance Impact from Removal of Shadow Balances Balance 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: Balance Pre-Adoption December 31, 2020 (1) Impact from Removal of Shadow Balances Single-A Discount Cumulative Balance 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: Balance Pre-Adoption December 31, 2020 (1) Single-A Cumulative Balance 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 Pre-Adoption December 31, 2020 (1) Cumulative Cumulative Balance 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 Pre-Adoption December 31, 2020 (1) Cumulative Balance 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 Sheet: As of December 31, 2022 As Previously Reported (1) Adoption As 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 (2) 24,450 (2,646) 21,804 Market risk benefit assets – 2,807 2,807 Other assets (2) 8,831 (1,154) 7,677 Total assets (2) 338,185 (2,603) 335,582 Future contract benefits (2) 41,203 (2,901) 38,302 Market risk benefit liabilities – 2,078 2,078 Deferred front-end loads (2) 5,765 (650) 5,115 Other liabilities (2) 7,719 (1,468) 6,251 Total liabilities (2) 329,919 (2,941) 326,978 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 reported 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”). (2) Certain as previously reported amounts have been reclassified to conform to the current presentation. 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 Year Ended December 31, 2022 For the Year Ended December 31, 2021 As Previously Reported (1) Adoption As Adjusted As Previously Reported (1) Adoption of New Accounting Standard As Adjusted Fee income $ 5,783 $ (417) $ 5,366 $ 6,630 $ (864) $ 5,766 Realized gain (loss) 214 204 418 711 148 859 Total revenues 17,770 (213) 17,557 19,228 (716) 18,512 Benefits 10,801 (2,598) 8,203 8,039 (12) 8,027 Interest credited 2,849 11 2,860 2,911 1 2,912 Market risk benefit (gain) loss – 296 296 – (1,554) (1,554) Policyholder liability remeasurement (gain) – 2,445 2,445 – (119) (119) Commissions and other expenses 4,799 128 4,927 5,548 (537) 5,011 Total expenses 19,387 282 19,669 16,699 (2,221) 14,478 Income (loss) before taxes (1,617) (495) (2,112) 2,529 1,505 4,034 Federal income tax expense (benefit) (332) (105) (437) 420 317 737 Net income (loss) (1,285) (390) (1,675) 2,109 1,188 3,297 Unrealized investment gain (loss) (13,613) (4,026) (17,639) (2,480) (753) (3,233) Market risk benefit non-performance risk gain (loss) – (211) (211) – (923) (923) Policyholder liability discount rate remeasurement gain (loss) – 1,891 1,891 – 560 560 Total other comprehensive income (loss), net of tax (13,617) (2,346) (15,963) (2,477) (1,116) (3,593) Comprehensive income (loss) (14,902) (2,736) (17,638) (368) 72 (296) (1) The amounts as previously reported were reported 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: As of December 31, 2022 As of December 31, 2021 As Previously Reported (1) Adoption As As Previously Reported (1) Adoption As Retained earnings balance as of beginning-of-year $ 4,366 $ (632) $ 3,734 $ 4,167 $ – $ 4,167 Cumulative effect from adoption of new accounting standards – – – – (1,820) (1,820) Net income (loss) (1,285) (390) (1,675) 2,109 1,188 3,297 Retained earnings balance as of end-of-year 2,436 (1,022) 1,414 4,366 (632) 3,734 Accumulated other comprehensive income (loss) balance as of beginning-of-year 6,544 3,706 10,250 9,021 – 9,021 Cumulative effect from adoption of new accounting standards – – – – 4,822 4,822 Other comprehensive income (loss), net of tax (13,617) (2,346) (15,963) (2,477) (1,116) (3,593) Accumulated other comprehensive income (loss) balance as of end-of-year (7,073) 1,360 (5,713) 6,544 3,706 10,250 Total stockholder’s equity as of end-of-year $ 8,266 $ 338 $ 8,604 $ 22,860 $ 3,074 $ 25,934 (1) The amounts as previously reported were reported 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 Cash Flows: For the Year Ended December 31, 2022 As Previously Reported (1) Adoption As Net income (loss) $ (1,285) $ (390) $ (1,675) Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Realized (gain) loss (214) (204) (418) Market risk benefit (gain) loss – 296 296 Change in: Deferred acquisition costs, value of business acquired, deferred sales inducements and deferred front-end loads 45 450 495 Insurance liabilities and reinsurance-related balances (2) 727 (75) 652 Accrued expenses (98) (3) (101) Federal income tax accruals (271) (105) (376) Other (2) 375 31 406 For the Year Ended December 31, 2021 As Previously Reported (1) Adoption As Net income (loss) $ 2,109 $ 1,188 $ 3,297 Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Realized (gain) loss (711) (148) (859) Market risk benefit (gain) loss – (1,554) (1,554) Change in: Deferred acquisition costs, value of business acquired, deferred sales inducements and deferred front-end loads 289 207 496 Insurance liabilities and reinsurance-related balances (2) (862) (31) (893) Accrued expenses 370 7 377 Federal income tax accruals 391 317 708 Other (2) (365) 14 (351) (1) The amounts as previously reported were reported in our 2022 Form 10-K. (2) Certain as previously reported amounts have been reclassified to conform to the current presentation. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2023 | |
Investments [Abstract] | |
Investments | Investments 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 December 31, 2023 Amortized Cost Gross Unrealized Allowance for Credit Losses Fair Value Gains Losses Fixed maturity AFS securities: Corporate bonds $ 68,811 $ 820 $ 5,757 $ 8 $ 63,866 U.S. government bonds 414 7 28 – 393 State and municipal bonds 2,675 97 230 – 2,542 Foreign government bonds 309 15 46 – 278 RMBS 1,719 27 138 6 1,602 CMBS 1,520 5 181 – 1,344 ABS 12,556 62 571 4 12,043 Hybrid and redeemable preferred securities 227 21 15 1 232 Total fixed maturity AFS securities $ 88,231 $ 1,054 $ 6,966 $ 19 $ 82,300 As of December 31, 2022 Amortized Cost Gross Unrealized Allowance for Credit Losses Fair Value Gains Losses 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 December 31, 2023, were as follows: Amortized Fair Value Due in one year or less $ 4,389 $ 4,354 Due after one year through five years 17,444 16,858 Due after five years through ten years 15,405 14,403 Due after ten years 35,198 31,696 Subtotal 72,436 67,311 Structured securities (RMBS, CMBS, ABS) 15,795 14,989 Total fixed maturity AFS securities $ 88,231 $ 82,300 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 December 31, 2023 Less Than or Equal Greater Than Twelve Months Total Fair Value Gross Unrealized Fair Value Gross Unrealized Fair Value Gross Unrealized Losses (1) Fixed maturity AFS securities: Corporate bonds $ 13,439 $ 1,744 $ 33,285 $ 4,013 $ 46,724 $ 5,757 U.S. government bonds 65 6 194 22 259 28 State and municipal bonds 371 72 814 158 1,185 230 Foreign government bonds 108 31 57 15 165 46 RMBS 355 20 840 118 1,195 138 CMBS 583 56 586 125 1,169 181 ABS 1,898 68 7,212 503 9,110 571 Hybrid and redeemable preferred securities 32 2 94 13 126 15 Total fixed maturity AFS securities $ 16,851 $ 1,999 $ 43,082 $ 4,967 $ 59,933 $ 6,966 Total number of fixed maturity AFS securities in an unrealized loss position 7,167 As of December 31, 2022 Less Than or Equal Greater Than Twelve Months Total Fair Value Gross Unrealized Fair Value Gross Unrealized Fair Value Gross Unrealized 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 December 31, 2023 and 2022, we recognized $7 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 December 31, 2023 Fair Value Gross Number of Securities (1) Less than six months $ 2,480 $ 916 529 Six months or greater, but less than nine months 321 90 79 Nine months or greater, but less than twelve months 321 106 87 Twelve months or greater 3,485 1,336 704 Total $ 6,607 $ 2,448 1,399 As of December 31, 2022 Fair Value Gross Number of 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 $5.5 billion for the year ended December 31, 2023, which was driven by declining interest rates during the fourth quarter of 2023 and the transfer of assets as part of the Fortitude Re reinsurance transaction. As discussed further below, we believe the unrealized loss position as of December 31, 2023, did not require an impairment recognized in earnings as (i) we did not intend to sell these fixed maturity AFS securities; (ii) it is not more likely than not that we will be required to sell the fixed maturity AFS securities before recovery of their amortized cost basis; and (iii) the difference in the fair value compared to the amortized cost was due to factors other than credit loss. Based upon this evaluation as of December 31, 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. As of December 31, 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 December 31, 2023 and 2022, 96% of the fair value of our corporate bond portfolio was rated investment grade. As of December 31, 2023 and 2022, the portion of our corporate bond portfolio rated below investment grade had an amortized cost of $2.7 billion and $3.5 billion, respectively, and a fair value of $2.6 billion and $3.3 billion, respectively. Based upon the analysis discussed above, we believe that as of December 31, 2023 and 2022, we would have recovered the amortized cost of each corporate bond. As of December 31, 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 December 31, 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. See Note Changes in the allowance for credit losses on fixed maturity AFS securities (in millions), aggregated by investment category, were as follows: For the Year Ended December 31, 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 24 1 – 25 Additions (reductions) for securities for which credit losses were previously recognized (2) (2) – (4) Reductions for securities disposed (2) – – (2) Reductions for securities charged-off (21) – – (21) Balance as of end-of-year (2) $ 8 $ 6 $ 5 $ 19 For the Year Ended December 31, 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 4 3 – 7 Additions (reductions) for securities for which credit losses were previously recognized 2 3 4 9 Reductions for securities disposed (2) – – (2) Reductions for securities charged-off (12) – – (12) Balance as of end-of-year (2) $ 9 $ 7 $ 5 $ 21 For the Year Ended December 31, 2021 Corporate Bonds RMBS Other Total Balance as of beginning-of-year $ 12 $ 1 $ – $ 13 Additions from purchases of PCD debt securities (1) – – – – Additions for securities for which credit losses were not previously recognized 8 – 1 9 Additions (reductions) for securities for which credit losses were previously recognized 5 – – 5 Reductions for securities disposed (2) – – (2) Reductions for securities charged-off (6) – – (6) Balance as of end-of-year (2) $ 17 $ 1 $ 1 $ 19 (1) Represents purchased credit-deteriorated (“PCD”) fixed maturity AFS securities. (2) As of December 31, 2023, 2022 and 2021, accrued investment income on fixed maturity AFS securities totaled $814 million, $1.1 billion and $944 million, respectively, and was excluded from the estimate of credit losses. Trading Securities Trading securities at fair value (in millions) consisted of the following: As of December 31, 2023 2022 Fixed maturity securities: Corporate bonds $ 1,615 $ 2,196 State and municipal bonds 21 21 Foreign government bonds 46 49 RMBS 62 99 CMBS 104 137 ABS 455 919 Hybrid and redeemable preferred securities 18 25 Total trading securities $ 2,321 $ 3,446 The portion of the market adjustment for trading gains and losses recognized in realized gain (loss) that relate to trading securities still held as of December 31, 2023, 2022 and 2021, was $80 million, $(628) million and $(48) million, respectively. Mortgage Loans on Real Estate The following provides the current and past due composition of our mortgage loans on real estate (in millions): As of December 31, 2023 As of December 31, 2022 Commercial Residential Total Commercial Residential Total Current $ 17,165 $ 1,665 $ 18,830 $ 16,913 $ 1,315 $ 18,228 30 to 59 days past due 61 28 89 19 23 42 60 to 89 days past due – 9 9 – 6 6 90 or more days past due – 60 60 – 33 33 Allowance for credit losses (86) (28) (114) (83) (15) (98) Unamortized premium (discount) (7) 43 36 (9) 36 27 Mark-to-market gains (losses) (1) (36) (1) (37) (27) – (27) Total carrying value $ 17,097 $ 1,776 $ 18,873 $ 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 15 Our commercial mortgage loan portfolio had the largest concentrations in California, which accounted for 27% and 28% of commercial mortgage loans on real estate as of December 31, 2023 and 2022, respectively, and Texas, which accounted for 9% of commercial mortgage loans on real estate as of December 31, 2023 and 2022. As of December 31, 2023, our residential mortgage loan portfolio had the largest concentrations in California and New York, which accounted for 14% and 12% 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 December 31, 2023 and 2022, we had 116 and 73 residential mortgage loans, respectively, that were either delinquent or in foreclosure. As of December 31, 2023 and 2022, we had 82 and 49 residential mortgage loans in foreclosure, respectively, with an aggregate carrying value of $38 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 year ended December 31, 2023, were less than $1 million and reported in realized gain (loss) on the Consolidated Statements of Comprehensive Income (Loss). As of December 31, 2023 and 2022, there were three and two specifically identified impaired commercial mortgage loans, respectively, with an aggregate carrying value of $2 million and less than $1 million, respectively. As of December 31, 2023 and 2022, there were 99 and 37 specifically identified impaired residential mortgage loans, respectively, with an aggregate carrying value of $47 million and $16 million, respectively. Additional information related to impaired mortgage loans on real estate (in millions) was as follows: For the Years Ended December 31, 2023 2022 2021 Average aggregate carrying value for impaired mortgage loans on real estate $ 30 $ 16 $ 32 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 December 31, 2023 As of December 31, 2022 Nonaccrual Nonaccrual Nonaccrual Nonaccrual Commercial mortgage loans on real estate $ – $ – $ – $ – Residential mortgage loans on real estate – 62 – 34 Total $ – $ 62 $ – $ 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 December 31, 2023 Less than Debt-Service 65% to 75% Debt-Service Greater than 75% Debt-Service Total Origination Year 2023 $ 1,366 1.90 $ 54 1.38 $ – – $ 1,420 2022 1,709 2.07 140 1.54 – – 1,849 2021 2,317 3.34 61 1.55 – – 2,378 2020 1,205 3.23 11 1.38 – – 1,216 2019 2,404 2.39 80 1.56 10 2.33 2,494 2018 and prior 7,770 2.39 78 1.60 14 0.87 7,862 Total $ 16,771 $ 424 $ 24 $ 17,219 As of December 31, 2022 Less than Debt-Service 65% to 75% Debt-Service Greater than 75% Debt-Service 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 December 31, 2023 Performing Nonperforming Total Origination Year 2023 $ 515 $ 2 $ 517 2022 533 22 555 2021 465 18 483 2020 78 3 81 2019 99 13 112 2018 and prior 53 4 57 Total $ 1,743 $ 62 $ 1,805 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. See Note Changes in the allowance for credit losses on mortgage loans on real estate (in millions) were as follows: For the Year Ended December 31, 2023 Commercial Residential Total Balance as of beginning-of-year $ 83 $ 15 $ 98 Additions (reductions) from provision for credit loss expense (1) 3 13 16 Additions from purchases of PCD mortgage loans on real estate – – – Balance as of end-of-year (2) $ 86 $ 28 $ 114 For the Year Ended December 31, 2022 Commercial Residential Total Balance as of beginning-of-year $ 78 $ 17 $ 95 Additions (reductions) from provision for credit loss expense (1) 5 (2) 3 Additions from purchases of PCD mortgage loans on real estate – – – Balance as of end-of-year (2) $ 83 $ 15 $ 98 For the Year Ended December 31, 2021 Commercial Residential Total Balance as of beginning-of-year $ 186 $ 17 $ 203 Additions (reductions) from provision for credit loss expense (1) (108) – (108) Additions from purchases of PCD mortgage loans on real estate – – – Balance as of end-of-year (2) $ 78 $ 17 $ 95 (1) We recognized $(1) million of credit loss benefit (expense) related to unfunded commitments for mortgage loans on real estate for the year ended December 31, 2023. We did not recognize any credit loss benefit (expense) related to unfunded commitments for mortgage loans on real estate for the year ended December 31, 2022. We recognized $3 million of credit loss benefit (expense) related to unfunded commitments for mortgage loans on real estate for the year ended December 31, 2021. (2) Accrued investment income on mortgage loans on real estate totaled $67 million, $51 million and $48 million as of December 31, 2023, 2022 and 2021, respectively, and was excluded from the estimate of credit losses. Alternative Investments As of December 31, 2023 and 2022, alternative investments included investments in 332 and 328 different partnerships, respectively, and represented approximately 3% and 2% of total investments, respectively. Net Investment Income The major categories of net investment income (in millions) on the Consolidated Statements of Comprehensive Income (Loss) were as follows: For the Years Ended December 31, 2023 2022 2021 Fixed maturity AFS securities $ 4,961 $ 4,408 $ 4,242 Trading securities 158 179 165 Equity securities 13 11 3 Mortgage loans on real estate 752 687 677 Policy loans 102 100 115 Cash and invested cash 118 12 – Commercial mortgage loan prepayment and bond make-whole premiums 10 100 195 Alternative investments 244 96 677 Consent fees 3 8 10 Other investments (38) 75 60 Investment income 6,323 5,676 6,144 Investment expense (611) (402) (305) Net investment income $ 5,712 $ 5,274 $ 5,839 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 Years Ended December 31, 2023 2022 2021 Intent to Sell Impairments (1) Fixed maturity AFS securities: Corporate bonds $ (3,805) $ – $ – State and municipal bonds (214) – – RMBS (74) – – CMBS (60) – – ABS (57) – – Hybrid and redeemable preferred securities (3) – – Total intent to sell impairments $ (4,213) $ – $ – Credit Loss Benefit (Expense) Fixed maturity AFS securities: Corporate bonds $ (23) $ (4) $ (10) RMBS 1 (6) – ABS 1 (4) – Hybrid and redeemable preferred securities – – (1) Total credit loss benefit (expense) $ (21) $ (14) $ (11) (1) Represents 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. Pursuant to the applicable accounting guidance, the Company impaired the securities in a loss position down to fair market value upon entry into the agreements in the second quarter of 2023 and recognized additional impairment on certain of these securities during the third quarter of 2023 due to higher interest rates. Interest rates declined during the fourth quarter of 2023, which resulted in recognition of a $295 million pre-tax net gain upon close of the transaction, included in gross gains and gross losses on fixed maturity AFS securities in Note 21. 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 December 31, 2023 As of December 31, 2022 Carrying Fair Value Carrying Fair Value Collateral payable for derivative investments (1) $ 5,127 $ 5,127 $ 3,210 $ 3,210 Securities pledged under securities lending agreements (2) 205 197 298 287 Investments pledged for FHLBI (3) 2,650 3,603 3,130 3,925 Total payables for collateral on investments $ 7,982 $ 8,927 $ 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 or fixed maturity AFS securities. 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 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 December 31, 2023 and 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 Years Ended December 31, 2023 2022 2021 Collateral payable for derivative investments $ 1,917 $ (2,355) $ 2,595 Securities pledged under securities lending agreements (93) 57 126 Investments pledged for FHLBI (480) – – Total increase (decrease) in payables for collateral on investments $ 1,344 $ (2,298) $ 2,721 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 December 31, 2023 Overnight Up to 30 Days 30-90 Days Greater than Total Securities Lending Corporate bonds $ 202 $ – $ – $ – $ 202 Equity securities 3 – – – 3 Total gross secured borrowings $ 205 $ – $ – $ – $ 205 As of December 31, 2022 Overnight Up to 30 Days 30-90 Days Greater than 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 December 31, 2023, the fair value of all collateral received that we are permitted to sell or re-pledge was $25 million, and we had not re-pledged any of this collateral to cover our collateral requirements. We also accept collateral from derivative counterparties in the form of securities which we are permitted to sell or re-pledge. As of December 31, 2023, the fair value of this collateral received that we are permitted to sell or re-pledge was $1.3 billion, and we had repledged $553 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 $42 million as of December 31, 2023. Investment Commitments As of December 31, 2023, our investment commitments were $3.0 billion, which included $2.3 billion of LPs, $536 million of mortgage loans on real estate and $197 million of private placement securities. Concentrations of Financial Instruments As of December 31, 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 December 31, 2023 and 2022, our most significant investments in one industry were our investments in securities in the financial services industry with a fair value of $16.6 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 $11.3 billion and $14.3 billion, respectively, or 10% and 11%, respectively, of total investments. These concentrations include fixed maturity AFS, trading and equity securities. |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2023 | |
Variable Interest Entities [Abstract] | |
Variable Interest Entities | Variable Interest Entities Unconsolidated VIEs Reinsurance-Related Notes Effective October 1, 2017, our captive reinsurance subsidiary, the Lincoln Reinsurance Company of Vermont VI, restructured the $275 million, long-term surplus note which was originally issued to a non-affiliated VIE in October 2015 in exchange for two corporate bond AFS securities of like principal and duration. The activities of the VIE are primarily to acquire, hold and issue notes and loans and to pay and collect interest on the notes and loans. The outstanding principal balance of the long-term surplus note is variable in nature; moving concurrently with any variability in the face amount of the corporate bond AFS securities. We have concluded that we are not the primary beneficiary of the non-affiliated VIE because we do not have power over the activities that most significantly affect its economic performance. As of December 31, 2023 , the principal balance of the long-term surplus note was zero and we do not currently have any exposure to this VIE. Structured Securities Through our investment activities, we make passive investments in structured securities issued by VIEs for which we are not the manager. These structured securities include our 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 the 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 the Consolidated Balance Sheets and were $4.0 billion and $3.0 billion as of December 31, 2023 and 2022, respectively. |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | 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 1 Note Note 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 annuity and life insurance 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, RILA, fixed indexed annuity, IUL and VUL products. Our RILA, fixed 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, RILA and VUL products. Put options are contracts that require the 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, 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 Lincoln National Reinsurance Company (Barbados) Limited (“LNBAR”), an affiliated reinsurer, 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: RILA, Fixed Indexed Annuity and IUL Contracts Embedded Derivatives Our RILA, fixed 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. Derivatives Related to Divestitures and Reinsurance Transactions We used interest rate futures contracts to hedge the interest rate risk related to the assets used as consideration in the Fortitude Re reinsurance transaction. These futures contracts required payment between our counterparty and us on a daily basis for changes in the associated future index prices. We use swaptions and forward-starting swaps to hedge the interest rate risk associated with the Stock Purchase Agreement entered into with Osaic. We have derivative instruments with off-balance-sheet risks whose notional or contract amounts exceed the related credit exposure. Outstanding derivative instruments with off-balance-sheet risks (in millions) were as follows: As of December 31, 2023 As of December 31, 2022 Notional Amounts Fair Value Notional Amounts Fair Value Asset Liability Asset Liability Qualifying Hedges Cash flow hedges: Interest rate contracts (1) $ 485 $ 11 $ 47 $ 1,377 $ 4 $ 232 Foreign currency contracts (1) 4,662 423 78 4,383 643 18 Total cash flow hedges 5,147 434 125 5,760 647 250 Fair value hedges: Interest rate contracts (1) 450 1 39 524 2 44 Foreign currency contracts (1) 25 – 1 – – – Total fair value hedges 475 1 40 524 2 44 Non-Qualifying Hedges Interest rate contracts (1) 90,829 636 979 105,977 709 935 Foreign currency contracts (1) 306 11 6 395 27 2 Equity market contracts (1) 225,251 10,244 4,227 142,653 5,135 2,035 Commodity contracts (1) – – – 13 14 3 Credit contracts (1) 91 – – – – – LPR ceded derivative (2) – 206 – – 212 – Embedded derivatives: Reinsurance-related (3) – 493 – – 681 – RILA, fixed indexed annuity and IUL contracts (4) – 940 9,077 – 525 4,783 Total derivative instruments $ 322,099 $ 12,965 $ 14,454 $ 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 as described in Note 1 (2) Reported in other assets on the Consolidated Balance Sheets. (3) Reported in funds withheld reinsurance liabilities on the Consolidated Balance Sheets. (4) Reported in policyholder account balances and deposit assets on the Consolidated Balance Sheets. The maturity of the notional amounts of derivative instruments (in millions) was as follows: Remaining Life as of December 31, 2023 Less Than 1 Year 1 – 5 6 - 10 11 - 30 Over 30 Total Interest rate contracts (1) $ 22,166 $ 25,350 $ 22,349 $ 21,899 $ – $ 91,764 Foreign currency contracts (2) 276 956 1,687 2,032 42 4,993 Equity market contracts 174,430 37,200 6,950 9 6,662 225,251 Credit contracts – 91 – – – 91 Total derivative instruments with notional amounts $ 196,872 $ 63,597 $ 30,986 $ 23,940 $ 6,704 $ 322,099 (1) As of December 31, 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 December 31, 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: Amortized Cost of the Cumulative Fair Value As of As of As of As of Line Item in the Consolidated Balance Sheets in which the Hedged Item is Included Fixed maturity AFS securities, at fair value $ 534 $ 587 $ 39 $ 44 The change in our unrealized gain (loss) on derivative instruments within AOCI (in millions) was as follows: For the Years Ended December 31, 2023 2022 2021 Unrealized Gain (Loss) on Derivative Instruments Balance as of beginning-of-year $ 301 $ 258 $ 42 Cumulative effect from adoption of new accounting standard – – 25 Other comprehensive income (loss): Unrealized holding gains (losses) arising during the period: Cash flow hedges: Interest rate contracts 212 (336) 11 Foreign currency contracts (50) 182 130 Change in foreign currency exchange rate adjustment (169) 312 152 Income tax benefit (expense) 2 (34) (63) Less: Reclassification adjustment for gains (losses) included in net income (loss): Cash flow hedges: Interest rate contracts (1) (1) 2 3 Foreign currency contracts (1) 54 62 48 Foreign currency contracts (2) 7 39 (2) Income tax benefit (expense) (13) (22) (10) Balance as of end-of-year $ 249 $ 301 $ 258 (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 Realized Gain (Loss) Net Investment Income Benefits Total Line Items in which the Effects of Fair Value or Cash Flow Hedges are Recorded $ (4,934) $ 5,712 $ 5,044 Qualifying Hedges Gain or (loss) on fair value hedging relationships: Interest rate contracts: Hedged items – (5) – Derivatives designated as hedging instruments – 5 – 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 7 54 – Non-Qualifying Hedges Interest rate contracts (161) – – Foreign currency contracts (2) – – Equity market contracts 1,387 – – Commodity contracts 8 – – Credit contracts (4) – – LPR ceded derivative – – 6 Embedded derivatives: Reinsurance-related (188) – – RILA, fixed indexed annuity and IUL contracts (3,187) – – Gain (Loss) Recognized in Income For the Year Ended December 31, 2022 Realized Gain (Loss) Net Investment Income Benefits Total Line Items in which the Effects of Fair Value or Cash Flow Hedges are Recorded $ 418 $ 5,274 $ 8,203 Qualifying Hedges Gain or (loss) on fair value hedging relationships: Interest rate contracts: Hedged items – (167) – Derivatives designated as hedging instruments – 167 Gain or (loss) on cash flow hedging relationships: Interest rate contracts: Amount of gain or (loss) reclassified from AOCI into income – 2 – Foreign currency contracts: Amount of gain or (loss) reclassified from AOCI into income 39 62 – Non-Qualifying Hedges Interest rate contracts (2,113) – – Foreign currency contracts 2 – – Equity market contracts (2,075) – – Commodity contracts 11 – – Credit contracts (4) – – LPR ceded derivative – – 106 Embedded derivatives: Reinsurance-related 1,259 – – RILA, fixed indexed annuity and IUL contracts 1,760 – – Gain (Loss) Recognized in Income For the Year Ended December 31, 2021 Realized Gain (Loss) Net Investment Income Benefits Total Line Items in which the Effects of Fair Value or Cash Flow Hedges are Recorded $ 859 $ 5,839 $ 8,027 Qualifying Hedges Gain or (loss) on fair value hedging relationships: Interest rate contracts: Hedged items – (60) – Derivatives designated as hedging instruments – 60 Gain or (loss) on cash flow hedging relationships: Interest rate contracts: Amount of gain or (loss) reclassified from AOCI into income – 3 – Foreign currency contracts: Amount of gain or (loss) reclassified from AOCI into income (2) 48 – Non-Qualifying Hedges Interest rate contracts (957) – – Foreign currency contracts (1) – – Equity market contracts 3,355 – – Credit contracts (1) – – Embedded derivatives: Reinsurance-related 280 – – RILA, fixed indexed annuity and IUL contracts (2,622) – – As of December 31, 2023, $56 million of the deferred net gains (losses) on derivative instruments in AOCI were expected to be reclassified to earnings during the next 12 months. This reclassification would be due primarily to interest rate variances related to our interest rate swap agreements. For the years ended December 31, 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 December 31, 2023 and 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 December 31, 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 ability. 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 not have any exposure as of December 31, 2023 or 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 December 31, 2023 As of December 31, 2022 S&P Collateral Collateral Collateral Collateral AA- $ 2,330 $ (63) $ 383 $ (6) A+ 2,422 (125) 1,718 (151) A 82 – 1,099 – A- 273 – – – $ 5,107 $ (188) $ 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 December 31, 2023 Derivative Embedded Total Financial Assets Gross amount of recognized assets $ 10,714 $ 1,433 $ 12,147 Gross amounts offset (4,409) – (4,409) Net amount of assets 6,305 1,433 7,738 Gross amounts not offset: Cash collateral (5,107) – (5,107) Non-cash collateral (1) (1,198) – (1,198) Net amount – 1,433 1,433 Financial Liabilities Gross amount of recognized liabilities 968 9,077 10,045 Gross amounts offset (612) – (612) Net amount of liabilities 356 9,077 9,433 Gross amounts not offset: Cash collateral (188) – (188) Non-cash collateral (2) (168) – (168) Net amount $ – $ 9,077 $ 9,077 (1) Excludes excess non-cash collateral received of $1.3 billion, 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 $81 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 Derivative Embedded 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 | 12 Months Ended |
Dec. 31, 2023 | |
Deferred Policy Acquisition Costs and Present Value of Future Insurance Profits, Net [Abstract] | |
DAC, VOBA, DSI and DFEL | DAC, VOBA, DSI and DFEL The following table reconciles DAC, VOBA and DSI (in millions) to the Consolidated Balance Sheets: As of December 31, 2023 2022 DAC, VOBA and DSI Variable Annuities $ 4,025 $ 4,047 Fixed Annuities 456 479 Traditional Life 1,374 1,336 UL and Other 6,139 6,002 Group Protection 154 141 Retirement Plan Services 270 258 Total DAC, VOBA and DSI $ 12,418 $ 12,263 The following table reconciles DFEL (in millions) to the Consolidated Balance Sheets: As of December 31, 2023 2022 DFEL Variable Annuities $ 300 $ 310 UL and Other (1) 5,579 4,766 Other Operations (2) 44 39 Total DFEL $ 5,923 $ 5,115 (1) We reported $2.3 billion of ceded DFEL in reinsurance recoverables on the Consolidated Balance Sheet as of December 31, 2023. (2) Represents DFEL reported in Other Operations attributable to the indemnity reinsurance agreement with Protective that is excluded from the following tables. We reported $44 million and $39 million of ceded DFEL in reinsurance recoverables on the Consolidated Balance Sheets as of December 31, 2023 and 2022, respectively. The following tables summarize the changes in DAC (in millions): For the Year Ended December 31, 2023 Variable Fixed Traditional UL and Group Protection Retirement Balance as of beginning-of-year $ 3,880 $ 439 $ 1,286 $ 5,518 $ 141 $ 241 Deferrals 361 50 188 482 113 21 Amortization (373) (68) (142) (291) (100) (18) Balance as of end-of-year $ 3,868 $ 421 $ 1,332 $ 5,709 $ 154 $ 244 For the Year Ended December 31, 2022 Variable Fixed Traditional UL and Group Protection Retirement 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 $992 million, $969 million and $969 million was recorded in commissions and other expenses on the Consolidated Statements of Comprehensive Income (Loss) for the years ended December 31, 2023, 2022 and 2021, respectively. The following tables summarize the changes in VOBA (in millions): For the Year Ended December 31, 2023 Fixed Traditional UL and Balance as of beginning-of-year $ 17 $ 50 $ 454 Business acquired (sold) through reinsurance – – (11) Deferrals – – 2 Amortization (2) (8) (43) Balance as of end-of-year $ 15 $ 42 $ 402 For the Year Ended December 31, 2022 Fixed Traditional UL and 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 $53 million, $59 million and $75 million was recorded in commissions and other expenses on the Consolidated Statements of Comprehensive Income (Loss) for the years ended December 31, 2023, 2022 and 2021, respectively. No additions or write-offs were recorded for each respective year. Estimated future amortization of VOBA (in millions), as of December 31, 2023, was as follows: 2024 $ 39 2025 37 2026 34 2027 29 2028 25 The following tables summarize the changes in DSI (in millions): For the Year Ended December 31, 2023 Variable Annuities Fixed UL and Retirement Balance as of beginning-of-year $ 167 $ 23 $ 30 $ 17 Deferrals 5 – – 10 Amortization (15) (3) (2) (1) Balance as of end-of-year $ 157 $ 20 $ 28 $ 26 For the Year Ended December 31, 2022 Variable Annuities Fixed UL and Retirement 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 $21 million, $23 million and $27 million was recorded in interest credited on the Consolidated Statements of Comprehensive Income (Loss) for the years ended December 31, 2023, 2022 and 2021, respectively. The following tables summarize the changes in DFEL (in millions): For the Year Ended December 31, 2023 For the Year Ended December 31, 2022 Variable Annuities UL and Variable Annuities UL and Balance as of beginning-of-year $ 310 $ 4,766 $ 318 $ 3,934 Deferrals 19 1,074 22 1,061 Amortization (29) (261) (30) (229) Balance as of end-of-year 300 5,579 310 4,766 Less: ceded DFEL – 2,252 – 31 Balance as of end-of-year, net of reinsurance $ 300 $ 3,327 $ 310 $ 4,735 DFEL amortization of $290 million, $259 million and $220 million was recorded in fee income on the Consolidated Statements of Comprehensive Income (Loss) for the years ended December 31, 2023, 2022 and 2021, respectively. |
Reinsurance
Reinsurance | 12 Months Ended |
Dec. 31, 2023 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance | Reinsurance The following summarizes reinsurance amounts (in millions) recorded on the Consolidated Statements of Comprehensive Income (Loss), excluding amounts attributable to the indemnity reinsurance agreements with Protective and Swiss Re: For the Years Ended December 31, 2023 2022 2021 Direct insurance premiums and fee income $ 13,661 $ 13,479 $ 13,277 Reinsurance assumed 91 102 97 Reinsurance ceded (1) (5,168) (2,374) (2,249) Total insurance premiums and fee income $ 8,584 $ 11,207 $ 11,125 Direct insurance benefits $ 10,178 $ 10,266 $ 10,491 Reinsurance ceded (1) (5,150) (2,063) (2,464) Total benefits $ 5,028 $ 8,203 $ 8,027 Direct market risk benefit (gain) loss $ (2,309) $ (3,517) $ (4,011) Reinsurance ceded 1,174 3,814 2,457 Total market risk benefit (gain) loss $ (1,135) $ 296 $ (1,554) Direct policyholder liability remeasurement (gain) loss $ (234) $ 3,284 $ (164) Reinsurance ceded 67 (839) 45 Total policyholder liability remeasurement (gain) loss $ (167) $ 2,445 $ (119) (1) Includes impacts related to the Fortitude Re reinsurance transaction effective in the fourth quarter of 2023 We and LLANY cede insurance to other companies. The portion of our annuity and life insurance risks exceeding each of our insurance companies’ retention limit is reinsured with other insurers. We seek reinsurance coverage to limit our exposure to mortality losses and to enhance our capital management. Reinsurance does not discharge us from our primary obligation to contract holders for losses incurred under the policies we issue. We evaluate each reinsurance agreement to determine whether the agreement provides indemnification against loss or liability. As discussed in Note 26, a portion of this reinsurance activity is with affiliated companies. As of December 31, 2023, the policy for our reinsurance program was to retain up to $20 million on a single insured life. As the amount we retain varies by policy, we reinsured 27% of the mortality risk on newly issued life insurance contracts in 2023. Reinsurance Exposures We focus on obtaining reinsurance from a diverse group of reinsurers, and we monitor concentration as well as financial strength ratings of our reinsurers. LNBAR We reinsure blocks of business to LNBAR, an affiliated reinsurer. The amounts recoverable from LNBAR were $15.6 billion and $2.2 billion a s of December 31, 2023 and 2022, respectively. The increase was driven primarily by an agreement between us and LNBAR that is structured as a coinsurance treaty, with some assets withheld, for certain blocks of in-force MoneyGuard® products. As significant insurance risk was transferred for the MoneyGuard blocks, amounts recoverable from LNBAR were $13.2 billion as of December 31, 2023 . We recorded a deferred gain on the transaction of $4.2 billion, of which $14 million was amortized during 2023 . As of December 31, 2023 , we held other investments and cash and invested cash with a carrying value of $759 million and $112 million, respectively, in support of reserves associated with this agreement. LNBAR has funded trusts to support reserves ceded by us of which the balance in the trusts changes as a result of ongoing reinsurance activity and totaled $13.0 billion and $2.2 billion as of December 31, 2023 and 2022, respectively. Fortitude Re Effective October 1, 2023, we entered into a reinsurance agreement with Fortitude Re, an authorized Bermuda reinsurer with reciprocal jurisdiction reinsurer status in Indiana, to reinsure certain blocks of in-force UL with secondary guarantees (“ULSG”) and fixed annuity products, including group pension annuities. Fortitude Re represents our largest unaffiliated reinsurance exposure as of December 31, 2023. The agreement between us and Fortitude Re is structured as a coinsurance treaty for the ULSG and fixed annuities blocks. As significant insurance risk was transferred for ULSG products and life-contingent annuities, amounts recoverable from Fortitude Re were $10.5 billion as of December 31, 2023 . We recorded a deferred loss on the transaction of $2.7 billion, of which $11 million was amortized during 2023. Annuities that are not life-contingent do not contain significant insurance risk; therefore, we recorded deposit assets for these contracts of $4.2 billion as of December 31, 2023 . Resolution Life 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”) to reinsure liabilities under a block of in-force executive benefit and universal life policies. The agreement is structured as coinsurance for the general account reserves and modified coinsurance for the separate account reserves. Amounts recoverable from Resolution Life were $5.0 billion as of December 31, 2023 and 2022 , respectively. Resolution Life has funded trusts, the balances of which change as a result of ongoing reinsurance activity to support the business ceded, that totaled $3.8 billion and $4.1 billion as of December 31, 2023 and 2022, respectively. We recognized a realized gain of $635 million in 2021 for the coinsurance portion of the transaction upon the transfer of a portfolio of assets to Resolution Life. Protective The sale of individual life and individual and group annuity business acquired from Liberty Life Assurance Company of Boston completed May 1, 2018 resulted in amounts recoverable from Protective of $9.1 billion and $9.6 billion as of December 31, 2023 and 2022 , respectively. Protective has funded trusts, of which the balance in the trusts changes as a result of ongoing reinsurance activity, to support the business ceded, which totaled $10.5 billion and $11.5 billion as of December 31, 2023 and 2022 , respectively. Protective represents our second largest unaffiliated reinsurance exposure as of December 31, 2023 . Athene Effective October 1, 2018, we entered into a modified coinsurance agreement with Athene Holding Ltd. (“Athene”) to reinsure fixed annuity products, which resulted in a deposit asset of $2.7 billion and $3.8 billion as of December 31, 2023 and 2022, respectively. We held assets in support of reserves associated with the Athene transaction in a modified coinsurance investment portfolio, which consisted of the following (in millions): As of December 31, 2023 2022 Fixed maturity AFS securities $ 177 $ 474 Trading securities 1,556 2,644 Equity securities 58 60 Mortgage loans on real estate 288 487 Derivative investments 43 39 Other investments 41 42 Cash and invested cash 582 26 Accrued investment income 23 35 Other assets 6 2 Total $ 2,774 $ 3,809 The portfolio was supported by $77 million of over-collateralization and a $83 million letter of credit as of December 31, 2023. Additionally, we recorded a deferred gain on business sold through reinsurance related to the transaction with Athene and amortized $33 million, $25 million and $26 million of the gain during 2023, 2022 and 2021, respectively. See “Realized Gain (Loss)” in Note 21 for information on reinsurance-related embedded derivatives. Swiss Re Our reinsurance operations were acquired by Swiss Re in December 2001 through a series of indemnity reinsurance transactions. As such, Swiss Re reinsured certain liabilities and obligations under the indemnity reinsurance agreements. As we are not relieved of our liability to the ceding companies for this business, the liabilities and obligations associated with the reinsured policies remain on the Consolidated Balance Sheets with a corresponding reinsurance recoverable from Swiss Re, which totaled $1.6 billion as of December 31, 2023 and 2022, respectively. Swiss Re has funded a trust, with a balance of $656 million and $710 million as of December 31, 2023 and 2022, respectively, to support this business. In addition to various remedies that we would have in the event of a default by Swiss Re, we continue to hold assets in support of certain of the transferred reserves. These assets consist of those reported as trading securities and certain mortgage loans. 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 $76 million and $315 million as of December 31, 2023 and 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. Effective September 30, 2023, reinsurance coverage terminated and all business ceded to Scottish Re was therefore recaptured. See Note 21 for additional information. |
Goodwill and Specifically Ident
Goodwill and Specifically Identifiable Intangible Assets | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Specifically Identifiable Intangible Assets | Goodwill and Specifically Identifiable Intangible Assets The changes in the carrying amount of goodwill (in millions) by reportable segment were as follows: For the Year Ended December 31, 2023 Gross Accumulated Net Impairment Net Annuities $ 1,040 $ (600) $ 440 $ – $ 440 Group Protection 684 – 684 – 684 Retirement Plan Services 20 – 20 – 20 Total goodwill $ 1,744 $ (600) $ 1,144 $ – $ 1,144 For the Year Ended December 31, 2022 Gross Accumulated Net Impairment Net 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. 2023 Analysis As of October 1, 2023, we performed our annual quantitative goodwill impairment test for our Annuities, Group Protection and Retirement Plan Services reporting units, and, as of such date, the fair value was in excess of each reporting unit’s carrying value. 2022 Analysis 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. 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. The gross carrying amounts and accumulated amortization (in millions) for each major specifically identifiable intangible asset class by reportable segment were as follows: As of December 31, 2023 As of December 31, 2022 Gross Accumulated Gross Accumulated Life Insurance: Sales force $ 100 $ 71 $ 100 $ 67 Group Protection: VOCRA 576 145 576 115 VODA 31 12 31 10 Retirement Plan Services: Mutual fund contract rights (1) 5 – 5 – Total $ 712 $ 228 $ 712 $ 192 (1 ) No amortization recorded as the intangible asset has indefinite life. Future estimated amortization of specifically identifiable intangible assets (in millions) as of December 31, 2023, was as follows: 2024 $ 37 2025 37 2026 37 2027 37 2028 37 Thereafter 294 |
MRBs
MRBs | 12 Months Ended |
Dec. 31, 2023 | |
ASU 2018-12 Transition [Abstract] | |
MRBs | MRBs The following table reconciles MRBs (in millions) to MRB assets and MRB liabilities on the Consolidated Balance Sheets: As of December 31, 2023 As of December 31, 2022 Assets Liabilities Net (Assets) Liabilities Assets Liabilities Net (Assets) Liabilities Variable Annuities $ 3,763 $ 1,583 $ (2,180) $ 2,666 $ 2,004 $ (662) Fixed Annuities 96 128 32 117 72 (45) Retirement Plan Services 35 5 (30) 24 2 (22) Total MRBs $ 3,894 $ 1,716 $ (2,178) $ 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 Year Ended As of or For the Year Ended Variable Annuities Fixed Annuities Retirement Plan Services Variable Annuities Fixed Annuities Retirement Plan 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 8 – – 12 – (3) Attributed fees collected 1,497 32 6 1,571 32 6 Benefit payments (64) – – (63) – – Effect of changes in interest rates (110) (24) 5 (9,346) (232) (55) Effect of changes in equity markets (3,167) (12) (13) 4,293 12 18 Effect of changes in equity index volatility (593) 9 (3) (225) 14 (1) In-force updates and other changes in MRBs (1) 136 5 1 661 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-year, before the effect of changes in non-performance risk (881) 90 (26) 1,511 (5) (20) Effect of cumulative changes in non-performance risk (1,299) (58) (4) (2,173) (40) (2) Balance as of end-of-year (2,180) 32 (30) (662) (45) (22) Less: ceded MRB assets (liabilities) (870) – (5) 294 – – Balance as of end-of-year, net of reinsurance $ (1,310) $ 32 $ (25) $ (956) $ (45) $ (22) Weighted-average age of policyholders (years) 72 68 63 71 68 63 Net amount at risk (3) $ 3,031 $ 203 $ 4 $ 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 year ended December 31, 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 year ended December 31, 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 Note 1 |
Separate Accounts
Separate Accounts | 12 Months Ended |
Dec. 31, 2023 | |
Separate Accounts Disclosure [Abstract] | |
Separate Accounts | 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 December 31, 2023 2022 Mutual funds and collective investment trusts $ 157,578 $ 142,892 Exchange-traded funds 350 258 Fixed maturity AFS securities 167 169 Cash and invested cash 25 98 Other investments 137 119 Total separate account assets $ 158,257 $ 143,536 The following table reconciles separate account liabilities (in millions) to the Consolidated Balance Sheets: As of December 31, 2023 2022 Variable Annuities $ 113,356 $ 105,573 UL and Other 25,150 20,920 Retirement Plan Services 19,699 16,996 Other Operations (1) 52 47 Total separate account liabilities $ 158,257 $ 143,536 (1) Represents separate account liabilities reported in Other Operations primarily attributable to the indemnity reinsurance agreements with Protective ($46 million and $42 million as of December 31, 2023 and December 31, 2022, respectively) 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 Year Ended As of or For the Year Ended Variable Annuities UL and Other Retirement Plan Services Variable Annuities UL and Other Retirement Plan Services Balance as of beginning-of-year $ 105,573 $ 20,920 $ 16,996 $ 136,665 $ 24,785 $ 21,068 Gross deposits 2,982 1,630 2,222 3,371 1,900 2,378 Withdrawals (10,177) (313) (2,527) (9,238) (454) (2,378) Policyholder assessments (2,510) (964) (163) (2,603) (938) (164) Change in market performance 16,870 3,973 3,221 (23,194) (4,371) (3,710) Net transfers from (to) general account 618 (96) (50) 572 (2) (198) Balance as of end-of-year $ 113,356 $ 25,150 $ 19,699 $ 105,573 $ 20,920 $ 16,996 Cash surrender value $ 111,928 $ 22,760 $ 19,684 $ 103,987 $ 18,666 $ 16,982 |
Policyholder Account Balances
Policyholder Account Balances | 12 Months Ended |
Dec. 31, 2023 | |
Policyholder Account Balance [Abstract] | |
Policyholder Account Balance | Policyholder Account Balances The following table reconciles policyholder account balances (in millions) to the Consolidated Balance Sheets: As of December 31, 2023 2022 Variable Annuities $ 29,141 $ 22,184 Fixed Annuities 25,330 23,338 UL and Other 36,784 37,258 Retirement Plan Services 23,784 25,138 Other (1) 5,277 6,054 Total policyholder account balances $ 120,316 $ 113,972 (1) Represents policyholder account balances reported primarily in Other Operations attributable to the indemnity reinsurance agreements with Protective ($4.9 billion and $5.7 billion as of December 31, 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 Year Ended December 31, 2023 Variable Annuities Fixed Annuities UL and Other Retirement Balance as of beginning-of-year $ 22,184 $ 23,338 $ 37,258 $ 25,138 Gross deposits 4,709 5,130 3,739 2,776 Withdrawals (742) (3,926) (1,430) (4,494) Policyholder assessments (1) (56) (4,464) (14) Net transfers from (to) separate account (427) – 97 (295) Interest credited 548 642 1,463 673 Change in fair value of embedded derivative instruments 2,870 202 121 – Balance as of end-of-year $ 29,141 $ 25,330 $ 36,784 $ 23,784 Weighted-average crediting rate 2.1 % 2.7 % 4.0 % 2.7 % Net amount at risk (1)(2) $ 3,031 $ 203 $ 300,994 $ 4 Cash surrender value 27,975 24,324 32,585 23,765 As of or For the Year Ended December 31, 2022 Variable Annuities Fixed Annuities UL and Other Retirement 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 December 31, 2023 At 1-50 Basis 51-100 101-150 Greater Total Range of Guaranteed Minimum Crediting Rate Variable Annuities Up to 1.00% $ – $ – $ – $ – $ – $ – 1.01% - 2.00% 5 – – – 7 12 2.01% - 3.00% 576 – – – – 576 3.01% - 4.00% 1,370 – – – – 1,370 4.01% and above 10 – – – – 10 Other (1) – – – – – 27,173 Total $ 1,961 $ – $ – $ – $ 7 $ 29,141 Fixed Annuities Up to 1.00% $ 696 $ 511 $ 546 $ 505 $ 2,429 $ 4,687 1.01% - 2.00% 426 97 235 527 3,081 4,366 2.01% - 3.00% 1,805 35 6 – 18 1,864 3.01% - 4.00% 903 – – – – 903 4.01% and above 180 – – – – 180 Other (1) – – – – – 13,330 Total $ 4,010 $ 643 $ 787 $ 1,032 $ 5,528 $ 25,330 UL and Other Up to 1.00% $ 275 $ – $ 195 $ 121 $ 352 $ 943 1.01% - 2.00% 557 – – – 3,125 3,682 2.01% - 3.00% 6,925 11 148 – – 7,084 3.01% - 4.00% 15,202 – 1 – – 15,203 4.01% and above 3,730 – – – – 3,730 Other (1) – – – – – 6,142 Total $ 26,689 $ 11 $ 344 $ 121 $ 3,477 $ 36,784 Retirement Plan Services Up to 1.00% $ 452 $ 569 $ 744 $ 4,904 $ 2,979 $ 9,648 1.01% - 2.00% 550 2,065 1,575 832 – 5,022 2.01% - 3.00% 2,492 – – – – 2,492 3.01% - 4.00% 5,012 – – – – 5,012 4.01% and above 1,610 – – – – 1,610 Total $ 10,116 $ 2,634 $ 2,319 $ 5,736 $ 2,979 $ 23,784 As of December 31, 2022 At 1-50 Basis 51-100 101-150 Greater Total Range of Guaranteed Minimum Crediting Rate 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 | 12 Months Ended |
Dec. 31, 2023 | |
Liability for Future Policy Benefits and Unpaid Claims and Claims Adjustment Expense [Abstract] | |
Future Contract Benefits | Future Contract Benefits The following table reconciles future contract benefits (in millions) to the Consolidated Balance Sheets: As of December 31, 2023 2022 Payout Annuities (1) $ 2,084 $ 2,003 Traditional Life (1) 3,553 3,190 Group Protection (2) 5,689 5,462 UL and Other (3) 15,752 14,777 Other Operations (4) 9,753 9,651 Other (5) 3,343 3,219 Total future contract benefits $ 40,174 $ 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 ($5.6 billion and $5.4 billion as of December 31, 2023, and December 31, 2022, respectively) and Swiss Re ($2.1 billion and $2.2 billion as of December 31, 2023, and December 31, 2022, respectively) that are excluded from the following tables. (5) Represents other miscellaneous reserves that are not representative of long-duration contracts and 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 Year Ended December 31, 2023 As of or For the Year Ended December 31, 2022 Payout Annuities Traditional Life Payout Annuities Traditional 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 – (275) – (21) Adjusted balance as of beginning-of-year – 6,200 – 5,364 Issuances – 580 – 1,655 Interest accrual – 236 – 209 Net premiums collected – (784) – (742) Flooring impact of LFPB – 4 – (6) Ending balance at original discount rate – 6,236 – 6,480 Effect of cumulative changes in discount rate assumptions – (152) – (584) Balance as of end-of-year $ – $ 6,084 $ – $ 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 – (21) – (321) Effect of actual variances from expected experience 1 (305) 3 (5) Adjusted balance as of beginning-of-year 2,267 9,553 2,248 8,567 Issuances 109 580 122 1,655 Interest accrual 86 364 84 326 Benefit payments (191) (658) (188) (669) Ending balance at original discount rate (1) 2,271 9,839 2,266 9,879 Effect of cumulative changes in discount rate assumptions (187) (202) (263) (793) Balance as of end-of-year $ 2,084 $ 9,637 $ 2,003 $ 9,086 Net balance as of end-of-year $ 2,084 $ 3,553 $ 2,003 $ 3,190 Less: reinsurance recoverables (2) 1,627 255 10 270 Net balance as of end-of-year, net of reinsurance $ 457 $ 3,298 $ 1,993 $ 2,920 Weighted-average duration of future policyholder benefit liability (years) 9 10 9 11 (1) Includes DPL within Payout Annuities of $56 million, $38 million and $22 million as of December 31, 2023, December 31, 2022 and December 31, 2021, respectively. (2) Increase in Payout Annuities reinsurance recoverables driven by the reinsurance agreement with Fortitude Re effective October 1, 2023 for certain blocks of in-force life-contingent payout fixed annuities. See Note 8 for more information on the transaction. For the year ended December 31, 2023, Payout Annuities did not have any significant assumption updates. For the year ended December 31, 2023, 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 year ended December 31, 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 December 31, 2023 As of December 31, 2022 Undiscounted Discounted Undiscounted Discounted Payout Annuities Expected future gross premiums $ – $ – $ – $ – Expected future benefit payments 3,481 2,084 3,471 2,003 Traditional Life Expected future gross premiums 13,406 9,341 13,166 8,887 Expected future benefit payments 13,404 9,637 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 Years Ended December 31, 2023 2022 2021 Payout Annuities Gross premiums $ 116 $ 133 $ 95 Interest accretion 86 84 84 Traditional Life Gross premiums 1,183 1,136 1,022 Interest accretion 128 117 113 The following table summarizes the weighted-average interest rates: For the Years Ended 2023 2022 Payout Annuities Interest accretion rate 3.9 % 3.9 % Current discount rate 4.9 % 5.3 % Traditional Life Interest accretion rate 5.0 % 5.0 % Current discount rate 4.7 % 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 Years Ended 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 (261) (117) Adjusted beginning-of-year balance 5,771 5,572 New incidence 1,702 1,777 Interest 159 141 Benefit payments (1,453) (1,431) Ending balance at original discount rate 6,179 6,059 Effect of cumulative changes in discount rate assumptions (490) (597) Balance as of end-of-year 5,689 5,462 Less: reinsurance recoverables 123 127 Balance as of end-of-year, net of reinsurance $ 5,566 $ 5,335 Weighted-average duration of liability for future claims (years) 5 4 For the year ended December 31, 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 year ended December 31, 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 December 31, 2023 As of December 31, 2022 Undiscounted Discounted Undiscounted Discounted Group Protection Expected future benefit payments $ 7,250 $ 6,179 $ 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 Years Ended December 31, 2023 2022 2021 Group Protection Gross premiums $ 3,549 $ 3,393 $ 3,145 Interest accretion 159 141 145 The following table summarizes the weighted-average interest rates: For the Years Ended 2023 2022 Group Protection Interest accretion rate 3.0 % 2.8 % Current discount rate 4.7 % 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 Years Ended 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 165 3,108 Effect of actual variances from expected experience (77) 195 Adjusted beginning-of-year balance 15,770 14,703 Issuances – 7 Interest accrual 765 626 Net assessments collected 658 974 Benefit payments (588) (628) Balance as of end-of-year, excluding shadow balance in AOCI 16,605 15,682 Effect of cumulative changes in shadow balance in AOCI (853) (905) Balance as of end-of-year 15,752 14,777 Less: reinsurance recoverables (1) 9,505 1,975 Balance as of end-of-year, net of reinsurance $ 6,247 $ 12,802 Weighted-average duration of additional liabilities for other insurance benefits (years) 17 17 (1) Increase in reinsurance recoverables driven by the reinsurance agreement with Fortitude Re effective October 1, 2023 for certain blocks of in-force ULSG. See Note 8 for more information on the transaction. For the year ended December 31, 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 year ended December 31, 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. For the year ended December 31, 2022, 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 Years Ended December 31, 2023 2022 2021 UL and Other Gross assessments $ 1,221 $ 2,818 $ 3,150 Interest accretion 765 626 498 The following table summarizes the weighted-average interest rates: For the Years Ended 2023 2022 UL and Other Interest accretion rate 5.3 % 5.0 % |
Short-Term and Long-Term Debt
Short-Term and Long-Term Debt | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Short-Term and Long-Term Debt | Short-Term and Long-Term Debt Details underlying short-term and long-term debt (in millions) were as follows: As of December 31, 2023 2022 Short-Term Debt Current maturities of long-term debt $ 50 $ — Short-term debt (1) 790 562 Total short-term debt $ 840 $ 562 Long-Term Debt, Excluding Current Portion 9.76% surplus note, due 2024 $ — $ 50 6.03% surplus note, due 2028 750 750 6.56% surplus note, due 2028 500 500 SOFR + 111 bps surplus note, due 2028 71 71 SOFR + 226 bps surplus note, due 2028 544 568 SOFR + 200 bps surplus note, due 2035 30 30 SOFR + 155 bps surplus note, due 2037 25 25 4.20% surplus note, due 2037 50 50 SOFR + 100 bps surplus note, due 2037 154 154 4.225% surplus note, due 2037 28 28 4.00% surplus note, due 2037 30 30 4.50% surplus note, due 2038 13 13 Total long-term debt $ 2,195 $ 2,269 (1) The short-term debt represents short-term notes payable to LNC. Effective July 1, 2023, we transitioned from LIBOR to Secured Overnight Financing Rate (“SOFR”) as the reference rate for our variable-rate debt. Future principal payments due on long-term debt (in millions) as of December 31, 2023, were as follows: 2024 $ 50 2025 – 2026 – 2027 – 2028 1,865 Thereafter 330 Total $ 2,245 We issued a surplus note of $50 million to LNC in 1994 . The note calls for us to pay the principal amount of the note on or before September 30, 2024 , and interest to be paid semiannually at an annual rate of 9.76% . Subject to approval by the Commissioner, we have the right to repay the note on any March 31 or September 30 . We issued a surplus note of $500 million to LNC in 1998. The note calls for us to pay the principal amount of the note on or before March 31, 2028, and interest to be paid quarterly at an annual rate of 6.56%. Subject to approval by the Commissioner, LNC has the right to redeem the note for immediate repayment in total or in part once per year on the anniversary date of the note. Any payment of interest or repayment of principal may be paid only out of our statutory earnings, only if our statutory capital surplus exceeds our statutory capital as of the date of note issuance of $2.3 billion, and subject to approval by the Commissioner. We issued a surplus note of $71 million to LNC in October 2013 . The note c alls for us to pay the principal amount of the note on or before September 24, 2028, and interest to be paid quarterly at an annual rate of SOFR + 111 bps. S ubject to approval by the Commissioner, we have the right to repay the note in whole or in part prior to the maturity date, if our statutory capital surplus exceeds the sum of our surplus at closing plus any accrued but unpaid interest. We issued a variable surplus note to a wholly-owned subsidiary of LNC in December 2013 with an initial outstanding principal amount of $287 million. The note calls for us to pay the principal amount of the note on or before October 1, 2028 , and interest to be paid quarterly at an annual rate of SOFR + 226 bps . The outstanding principal amount as of December 31, 2023, was $544 million. We issued a surplus note of $750 million to LNC in 1998. The note calls for us to pay the principal amount of the note on or before December 31, 2028 , and interest to be paid quarterly at an annual rate of 6.03% . Subject to approval by the Commissioner, LNC has the right to redeem the note for immediate repayment in total or in part once per year on the anniversary date of the note. Any payment of interest or repayment of principal may be paid only out of our statutory earnings, only if our statutory capital surplus exceeds our statutory capital surplus as of the date of note issuance of $2.4 billion, and subject to approval by the Commissioner. We issued a surplus note of $30 million to LNC in 2015. The note calls for us to pay the principal amount of the note on or before September 28, 2035, and interest to be paid quarterly at an annual rate of SOFR + 200 bps . Subject to approval by the Commissioner, we have the right to repay the note in whole or in part prior to the maturity date, if our statutory capital surplus exceeds the sum of our surplus at closing plus any accrued but unpaid interest. We issued a surplus note of $25 million to LNC in July 2017. The note calls for us to pay the principal amount of the note on or before June 30, 2037, and interest to be paid quarterly at an annual rate of SOFR + 155 bps. Subject to approval by the Commissioner, we have the right to repay the note in whole or in part prior to the maturity date, if our statutory capital surplus exceeds the sum of our surplus at closing plus any accrued but unpaid interest. We issued a surplus note of $50 million to LNC in October 2017. The note calls for us to pay the principal amount of the note on or before July 1, 2037, and interest to be paid quarterly at an annual rate of 4.20%. Subject to approval by the Commissioner, we have the right to repay the note in whole or in part prior to the maturity date, if our statutory capital surplus exceeds the sum of our surplus at closing plus any accrued but unpaid interest. We issued a surplus note of $375 million to LNC in 2007. The note calls for us to pay the principal amount of the note on or before October 9, 2037, and interest to be paid quarterly at an annual rate o f SOFR + 100 bps. The surplus note was amended in 2017 to include repayment terms stating subject to approval by the Commissioner, we have the right to repay the note in whole or in part prior to the maturity date, if our statutory capital surplus exceeds the sum of our surplus at closing plus any accrued but unpaid interest. The outstanding principal amount as of December 31, 2023, was $154 million due to executing our right to repay the surplus note in part to LNC. We issued a surplus note of $13 million to LNC in 2018. The note calls for us to pay the principal amount of the note on or before June 30, 2038, and interest to be paid quarterly at an annual rate of 4.50%. Subject to approval by the Commissioner, we have the right to repay the note in whole or in part prior to the maturity date, if our statutory capital surplus exceeds the sum of our surplus at closing plus any accrued but unpaid interest. We issued a surplus note of $28 million to LNC in 2019. The note calls for us to pay the principal amount of the note on or before October 9, 2037, and interest to be paid quarterly at an annual rate of 4.225%. Subject to approval by the Commissioner, we have the right to repay the note in whole or in part prior to the maturity date, if our statutory capital surplus exceeds the sum of our surplus at closing plus any accrued but unpaid interest. We issued a surplus note of $30 million to LNC in 2020. The note calls for us to pay the principal amount of the note on or before October 9, 2037, and interest to be paid quarterly at an annual rate of 4.00%. Subject to approval by the Commissioner, we have the right to repay the note in whole or in part prior to the maturity date, if our statutory capital surplus exceeds the sum of our surplus at closing plus any accrued but unpaid interest. Credit Facilities Credit facilities, which allow for borrowing or issuances of letters of credit (“LOCs”), (in millions) were as follows: As of December 31, 2023 Expiration Date Maximum Available LOCs Issued Credit Facilities Five-year revolving credit facility December 21, 2028 $ 2,000 $ 116 LOC facility (1) August 26, 2031 976 917 LOC facility (1) October 1, 2031 859 859 Total $ 3,835 $ 1,892 (1) Our wholly-owned subsidiaries entered into irrevocable LOC facility agreements with third-party lenders supporting inter-company reinsurance agreements. On December 21, 2023, LNC entered into a second amended and restated credit agreement with a syndicate of banks, which amended and restated our existing five-year revolving amended and restated credit agreement. The credit agreement, which is unsecured, allows for the issuance of LOCs and borrowing of up to $2.0 billion and has a commitment termination date of December 21, 2028 . The LOCs under the credit facility are used primarily to satisfy reserve credit requirements of (i) LNL and LNC’s other domestic insurance companies for which reserve credit is provided by our captive reinsurance subsidiaries and LNBAR and (ii) certain ceding companies of our legacy reinsurance business. The credit agreement, as currently in effect, contains: • Customary terms and conditions, including covenants restricting the ability of LNC and its subsidiaries to incur liens and the ability of LNC to merge or consolidate with another entity where it is not the surviving entity and dispose of all or substantially all of its assets; • Financial covenants including maintenance by LNC of a minimum consolidated net worth equal to the sum of $8.626 billion plus 50% of the aggregate net proceeds of equity issuances received by LNC or any of its subsidiaries after September 30, 2023 , all as more fully set forth in the agreement; and a debt-to-capital ratio as defined in accordance with the agreement not to exceed 0.35 to 1.00; • A cap on LNC’s secured non-operating indebtedness and non-operating indebtedness of LNC’s subsidiaries equal to 7.5% of total capitalization, as defined in accordance with the agreement; and • Customary events of default, subject to certain materiality thresholds and grace periods for certain of those events of default. Upon an event of default, the credit facility agreement, as currently in effect, provides that, among other things, the commitments may be terminated and the loans then outstanding may be declared due and payable. As of December 31, 2023, LNC was in compliance with all such covenants. Our LOC facility agreements each contain customary terms and conditions, including early termination fees, covenants restricting the ability of the subsidiaries to incur liens, merge or consolidate with another entity and dispose of all or substantially all of their assets. Upon an event of early termination, the agreements require the immediate payment of all or a portion of the present value of the future LOC fees that would have otherwise been paid. Further, the agreements contain customary events of default, subject to certain materiality thresholds and grace periods for certain of those events of default. The events of default include payment defaults, covenant defaults, material inaccuracies in representations and warranties, bankruptcy and liquidation proceedings and other customary defaults. Upon an event of default, the agreements provide that, among other things, obligations to issue, amend or increase the amount of any LOC shall be terminated and any obligations shall become immediately due and payable. As of December 31, 2023, we were in compliance with all such covenants. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The carrying values and estimated fair values of our financial instruments (in millions) were as follows: As of December 31, 2023 As of December 31, 2022 Carrying Value Fair Value Carrying Value Fair Value Assets Fixed maturity AFS securities $ 82,300 $ 82,300 $ 99,465 $ 99,465 Trading securities 2,321 2,321 3,446 3,446 Equity securities 306 306 427 427 Mortgage loans on real estate 18,873 17,330 18,211 16,477 Derivative investments 6,305 6,305 3,519 3,519 Other investments 4,757 4,757 3,577 3,577 Cash and invested cash 3,193 3,193 2,499 2,499 MRB assets 3,894 3,894 2,807 2,807 Other assets: Ceded MRBs 274 274 540 540 Indexed annuity ceded embedded derivatives 940 940 525 525 LPR ceded derivative 206 206 212 212 Separate account assets 158,257 158,257 143,536 143,536 Liabilities Policyholder account balances: Account balances of certain investment contracts (44,615) (34,020) (43,550) (34,251) RILA, fixed annuity and IUL contracts (9,077) (9,077) (4,783) (4,783) Funds withheld reinsurance liabilities – reinsurance-related embedded derivatives 493 493 681 681 MRB liabilities (1,716) (1,716) (2,078) (2,078) Short-term debt (840) (841) (562) (562) Long-term debt (2,195) (2,125) (2,269) (2,166) Other liabilities: Ceded MRBs (1,149) (1,149) (246) (246) Derivative liabilities (356) (356) (254) (254) Remaining guaranteed interest and similar contracts (411) (411) (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 December 31, 2023 and 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 December 31, 2023 2022 Fair value $ 288 $ 487 Aggregate contractual principal 326 514 As of December 31, 2023 and 2022, no loans for which the fair value option was elected were in non-accrual status, and none were more than 90 days past due and still accruing interest. Financial Instruments Carried at Fair Value We did not have any assets or liabilities measured at fair value on a nonrecurring basis as of December 31, 2023 or 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 December 31, 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 $ – $ 57,397 $ 6,469 $ 63,866 U.S. government bonds 373 20 – 393 State and municipal bonds – 2,537 5 2,542 Foreign government bonds – 278 – 278 RMBS – 1,589 13 1,602 CMBS – 1,336 8 1,344 ABS – 10,559 1,484 12,043 Hybrid and redeemable preferred securities 46 138 48 232 Trading securities – 2,037 284 2,321 Equity securities 1 263 42 306 Mortgage loans on real estate – – 288 288 Derivative investments (1) – 10,705 622 11,327 Other investments – short-term investments – 233 – 233 Cash and invested cash – 3,193 – 3,193 MRB assets – – 3,894 3,894 Other assets: Ceded MRBs – – 274 274 Indexed annuity ceded embedded derivatives – – 940 940 LPR ceded derivative – – 206 206 Separate account assets 402 157,855 – 158,257 Total assets $ 822 $ 248,140 $ 14,577 $ 263,539 Liabilities Policyholder account balances – RILA, fixed annuity and IUL contracts $ – $ – $ (9,077) $ (9,077) Funds withheld reinsurance liabilities – reinsurance-related embedded derivatives – 493 – 493 MRB liabilities – – (1,716) (1,716) Other liabilities: Ceded MRBs – – (1,149) (1,149) Derivative liabilities (1) – (4,792) (586) (5,378) Total liabilities $ – $ (4,299) $ (12,528) $ (16,827) 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 Indexed annuity ceded embedded derivatives – – 525 525 LPR ceded derivative – – 212 212 Separate account assets 412 143,124 – 143,536 Total assets $ 784 $ 247,426 $ 12,298 $ 260,508 Liabilities Policyholder account balances – indexed annuity and IUL contracts embedded derivatives $ – $ – $ (4,783) $ (4,783) Funds withheld reinsurance liabilities – reinsurance-related embedded derivatives – 681 – 681 MRB liabilities – – (2,078) (2,078) Other liabilities: Ceded MRBs – – (246) (246) Derivative liabilities (1) – (2,666) (603) (3,269) Total liabilities $ – $ (1,985) $ (7,710) $ (9,695) (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 Year Ended December 31, 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 $ (17) $ 28 $ 1,284 $ (12) $ 6,469 State and municipal bonds 35 (4) 4 (30) – 5 RMBS 1 – – 5 7 13 CMBS – – – (4) 12 8 ABS 1,117 – 9 733 (375) 1,484 Hybrid and redeemable preferred securities 49 – (2) (2) 3 48 Trading securities 581 17 – (313) (1) 284 Equity securities 153 (19) – (98) 6 42 Mortgage loans on real estate 487 (7) 5 (197) – 288 Derivative investments 2 (13) – 16 31 36 Other assets: Ceded MRBs (3) 540 (266) – – – 274 Indexed annuity ceded embedded derivatives (4) 525 6 – 409 – 940 LPR ceded derivative (5) 212 (6) – – – 206 Policyholder account balances – RILA, fixed annuity and IUL contracts (4) (4,783) (3,193) – (1,101) – (9,077) Other liabilities – ceded MRBs (3) (246) (903) – – – (1,149) Total, net $ 3,859 $ (4,405) $ 44 $ 702 $ (329) $ (129) For the Year Ended December 31, 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 $ 1 $ (1,542) $ 592 $ (2,666) $ 5,186 State and municipal bonds – – (1) – 36 35 Foreign government bonds 41 – (6) (30) (5) – RMBS 3 – 1 21 (24) 1 CMBS – – – 17 (17) – ABS 870 – (113) 676 (316) 1,117 Hybrid and redeemable preferred securities 90 (4) (21) (12) (4) 49 Trading securities 828 (80) – (152) (15) 581 Equity securities 91 52 – 25 (15) 153 Mortgage loans on real estate 739 (20) (5) (227) – 487 Derivative investments 21 2 (6) – (15) 2 Other assets: Ceded MRBs (3) 4,114 (3,574) – – – 540 Indexed annuity ceded embedded derivatives (4) 528 (215) – 212 – 525 LPR ceded derivative (5) 318 (106) – – – 212 Policyholder account balances – indexed annuity and IUL contracts embedded derivatives (4) (6,131) 1,975 – (627) – (4,783) Other liabilities – ceded MRBs (3) (17) (229) – – – (246) Total, net $ 10,296 $ (2,198) $ (1,693) $ 495 $ (3,041) $ 3,859 For the Year Ended December 31, 2021 Gains Issuances, Transfers Items (Losses) Sales, Into or Included in Maturities, Out Beginning in OCI Settlements, of Ending Fair Net and Calls, Level 3, Fair Value Income Other (1) Net Net Value Investments: (2) Fixed maturity AFS securities: Corporate bonds $ 7,761 $ 3 $ (182) $ 1,189 $ 30 $ 8,801 U.S. government bonds 5 – – (5) – – Foreign government bonds 74 – (11) 80 (102) 41 RMBS 2 – – 2 (1) 3 CMBS 1 (1) – 8 (8) – ABS 570 1 (9) 602 (294) 870 Hybrid and redeemable preferred securities 103 – 25 (38) – 90 Trading securities 643 (3) – 210 (22) 828 Equity securities 57 38 – (4) – 91 Mortgage loans on real estate 832 11 5 (109) – 739 Derivative investments 1,542 1,255 (3) (139) (2,634) 21 Other assets: Ceded MRBs (3) 6,539 (2,425) – – – 4,114 Indexed annuity ceded embedded derivatives (4) 550 87 – (109) – 528 LPR ceded derivative (5) – – – – 318 318 Policyholder account balances – indexed annuity and IUL contracts embedded derivatives (4) (3,594) (2,709) – 172 – (6,131) Other liabilities – ceded MRBs (3) – (17) – – – (17) Total, net $ 15,085 $ (3,760) $ (175) $ 1,859 $ (2,713) $ 10,296 (1) The changes in fair value of the interest rate swaps are offset by an adjustment to derivative investments Note (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 Year Ended December 31, 2023 Issuances Sales Maturities Settlements Calls Total Investments: Fixed maturity AFS securities: Corporate bonds $ 2,035 $ (334) $ (34) $ (372) $ (11) $ 1,284 State and municipal bonds – (30) – – – (30) RMBS 5 – – – – 5 CMBS – – – (4) – (4) ABS 971 (2) – (230) (6) 733 Hybrid and redeemable preferred securities – – – – (2) (2) Trading securities – (231) – (82) – (313) Equity securities 1 (99) – – – (98) Mortgage loans on real estate 5 – – (202) – (197) Derivative investments 19 – (3) – – 16 Other assets – indexed annuity ceded embedded derivatives 404 – – 5 – 409 Policyholder account balances – RILA, fixed annuity and IUL contracts (1,113) – – 12 – (1,101) Total, net $ 2,327 $ (696) $ (37) $ (873) $ (19) $ 702 For the Year Ended December 31, 2022 Issuances Sales Maturities Settlements Calls Total Investments: Fixed maturity AFS securities: Corporate bonds $ 1,335 $ (398) $ (81) $ (231) $ (33) $ 592 Foreign government bonds – – (30) – – (30) RMBS 21 – – – – 21 CMBS 17 – – – – 17 ABS 918 – – (235) (7) 676 Hybrid and redeemable preferred securities – – – – (12) (12) Trading securities 287 (229) – (210) – (152) Equity securities 34 (9) – – – 25 Mortgage loans on real estate 15 – – (242) – (227) Other assets – indexed annuity ceded embedded derivatives 124 – – 88 – 212 Policyholder account balances – indexed annuity and IUL contracts embedded derivatives (710) – – 83 – (627) Total, net $ 2,041 $ (636) $ (111) $ (747) $ (52) $ 495 For the Year Ended December 31, 2021 Issuances Sales Maturities Settlements Calls Total Investments: Fixed maturity AFS securities: Corporate bonds $ 1,861 $ (110) $ (109) $ (423) $ (30) $ 1,189 U.S. government bonds – – (5) – – (5) Foreign government bonds 80 – – – – 80 RMBS 2 – – – – 2 CMBS 8 – – – – 8 ABS 835 – – (233) – 602 Hybrid and redeemable preferred securities 12 (20) – – (30) (38) Trading securities 383 (25) – (148) – 210 Equity securities 6 (10) – – – (4) Mortgage loans on real estate 96 (101) (26) (78) – (109) Derivative investments 174 (124) (189) – – (139) Other assets – indexed annuity ceded embedded derivatives 55 – – (164) – (109) Policyholder account balances – indexed annuity and IUL contracts embedded derivatives (400) – – 572 – 172 Total, net 3,112 (390) (329) (474) (60) 1,859 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 Years Ended December 31, 2023 2022 2021 Trading securities (1) $ 8 $ (81) $ 4 Equity securities (1) (16) 54 40 Mortgage loans on real estate (1) (8) (20) 12 Derivative investments (1) 1 2 1,051 MRBs (2) 1,071 (359) 1,530 Other assets – LPR ceded derivative (3) (6) (106) – Embedded derivatives - indexed annuity and IUL contracts (1) (20) (95) 44 Total, net $ 1,030 $ (605) $ 2,681 (1) Included in realized gain (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) For the Years Ended December 31, 2023 2022 2021 Fixed maturity AFS securities: Corporate bonds $ 7 $ (1,553) $ (183) State and municipal bonds 3 (1) – Foreign government bonds – (7) (10) ABS 3 (115) (9) Hybrid and redeemable preferred securities (1) (21) 26 Mortgage loans on real estate 4 (5) 4 Total, net $ 16 $ (1,702) $ (172) The following provides the components of the transfers into and out of Level 3 (in millions) as reported above: For the Year Ended December 31, 2023 Transfers Transfers Into Out of Level 3 Level 3 Total Investments: Fixed maturity AFS securities: Corporate bonds $ 194 $ (206) $ (12) RMBS 12 (5) 7 CMBS 12 – 12 ABS 2 (377) (375) Hybrid and redeemable preferred securities 16 (13) 3 Trading securities 6 (7) (1) Equity securities 6 – 6 Derivative investments 31 – 31 Total, net $ 279 $ (608) $ (329) For the Year Ended December 31, 2022 Transfers Transfers Into Out of Level 3 Level 3 Total Investments: Fixed maturity AFS securities: Corporate bonds $ 296 $ (2,962) $ (2,666) State and municipal bonds 36 – 36 Foreign government bonds – (5) (5) RMBS – (24) (24) CMBS – (17) (17) ABS 16 (332) (316) Hybrid and redeemable preferred securities – (4) (4) Trading securities 4 (19) (15) Equity securities – (15) (15) Derivative investments – (15) (15) Total, net $ 352 $ (3,393) $ (3,041) For the Year Ended December 31, 2021 Transfers Transfers Into Out of Level 3 Level 3 Total Investments: Fixed maturity AFS securities: Corporate bonds $ 164 $ (134) $ 30 Foreign government bonds – (102) (102) RMBS – (1) (1) CMBS – (8) (8) ABS 36 (330) (294) Trading securities 12 (34) (22) Derivative investments 24 (2,658) (2,634) Other assets – LPR ceded derivative 318 – 318 Total, net $ 554 $ (3,267) $ (2,713) 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 years ended December 31, 2023, 2022 and 2021, transfers in and out of Level 3 were attributable primarily to the financial instruments’ observable market information no longer being available or becoming available. In 2022, transfers out of Level 3 included corporate bonds and ABS for which we changed valuation techniques. This change in valuation technique was primarily from a change to a third-party-provided pricing model that did not use significant unobservable inputs. In 2021, transfers out of Level 3 included derivative instruments for which we changed valuation techniques. This change in valuation technique was primarily from unobservable inputs in counterparty models to a mathematical model provided by a third party. These updated valuation techniques are considered industry standard and provide us with greater visibility into the economic valuation inputs. 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, 2023: Weighted Fair Valuation Significant Assumption or Average Input Value Technique Unobservable Inputs Input Ranges Range (1) Assets Investments: Fixed maturity AFS and trading securities: Corporate bonds $ 183 Discounted cash flow Liquidity/duration adjustment (2) (0.2) % – 3.7 % 2.1 % State and municipal bonds 5 Discounted cash flow Liquidity/duration adjustment (2) 0.9 % – 2.2 % 2.1 % CMBS 8 Discounted cash flow Liquidity/duration adjustment (2) 2.3 % – 2.3 % 2.3 % ABS 12 Discounted cash flow Liquidity/duration adjustment (2) 1.8 % – 1.8 % 1.8 % Hybrid and redeemable preferred securities 7 Discounted cash flow Liquidity/duration adjustment (2) 1.4 % – 1.5 % 1.5 % Equity securities 5 Discounted cash flow Liquidity/duration adjustment (2) 4.5 % – 4.5 % 4.5 % MRB assets 3,894 Other assets – ceded MRBs 274 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) 0.51 % – 2.13 % 1.78 % Mortality (7) (9) (10) Volatility (8) 1 % – 29 % 13.92 % Other assets – indexed annuity ceded embedded derivatives 940 Discounted cash flow Lapse (3) 0 % – 9 % (10) Mortality (7) (9) (10) Other assets – LPR ceded derivative 206 Discounted cash flow Lapse (3) 0.1 % – 2.00 % (10) Non-performance risk (6) 0.51 % – 2.13 % 1.58 % Mortality (7) (9) (10) Liabilities Policyholder account balances – indexed annuity contracts embedded derivatives $ (9,013) Discounted cash flow Lapse (3) 0 % – 9 % (10) Mortality (7) (9) (10) MRB liabilities (1,716) Other liabilities – ceded MRBs (1,149) 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) 0.51 % – 2.13 % 1.78 % Mortality (7) (9) (10) Volatility (8) 1 % – 29 % 13.92 % 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 Fair Valuation Significant Assumption or Average 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 balance 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, in which case 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. For more information, see Note 1 • 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. |
Retirement and Deferred Compens
Retirement and Deferred Compensation Plans | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Retirement and Deferred Compensation Plans | Retirement and Deferred Compensation Plans Defined Benefit Pension and Other Postretirement Benefit Plans We maintain defined benefit pension plans in which certain agents are participants. These defined benefit pension plans are closed to new entrants and existing participants do not accrue any additional benefits. We comply with applicable minimum funding requirements. In accordance with such practice, we were not required to make contributions for the years ended December 31, 2023 and 2022. We do not expect to be required to make any contributions to these pension plans in 2024. We sponsor other postretirement benefit plans that provide health care and life insurance to certain retired agents. Total net periodic cost (recovery) for these plans was $2 million, $(2) million and $1 million during 2023, 2022 and 2021, respectively, which was reported within commissions and other expenses on the Consolidated Statements of Comprehensive Income (Loss). In 2024, we expect the plans to make benefit payments of approximately $9 million. Information (in millions) with respect to these plans was as follows: As of or For the Years Ended December 31, 2023 2022 2023 2022 Other Postretirement Pension Plans Benefit Plans Fair value of plan assets $ 71 $ 77 $ 10 $ 9 Projected benefit obligation 77 82 6 6 Funded status $ (6) $ (5) $ 4 $ 3 Amounts Recognized on the Consolidated Balance Sheets Other assets $ – $ – $ 4 $ 3 Other liabilities (6) (5) – – Net amount recognized $ (6) $ (5) $ 4 $ 3 Weighted-Average Assumptions Benefit obligations: Weighted-average discount rate 5.44% 5.66% 5.45% 5.70% Net periodic benefit cost: Weighted-average discount rate 5.62% 3.07% 5.70% 3.73% Expected return on plan assets 6.00% 5.00% 6.50% 6.50% The weighted average discount rate was determined based on a corporate yield curve as of December 31, 2023, and projected benefit obligation cash flows. The expected return on plan assets was determined based on historical and expected future returns of the various asset categories, using the plans’ target plan allocation. We reevaluate these assumptions each plan year. The following summarizes our fair value measurements of our benefit plans’ assets (in millions) on a recurring basis by asset category: As of December 31, 2023 2022 Fixed maturity securities: Corporate bonds $ 23 $ 33 U.S. government bonds 22 17 CMBS 2 2 Common stock 21 22 Cash and invested cash 3 3 Other investments 10 9 Total $ 81 $ 86 Participation in Defined Benefit Pension and Other Postretirement Benefit Plans We participate in defined benefit pension plans that are sponsored by LNC for certain employees and non-employee directors. These defined benefit pension plans are closed to new entrants, and existing participants do not accrue any additional benefits. We also participate in other postretirement benefit plans sponsored by LNC that provide health care and life insurance to certain retired employees. Our expense (benefit) for these plans was $1 million, $(35) million and $(28) million for the years ended December 31, 2023, 2022 and 2021, respectively. Defined Contribution Plans We sponsor tax-qualified defined contribution plans for eligible agents that are administered in accordance with the plan documents and various limitations under section 401(a) of the Internal Revenue Code of 1986. We also participate in defined contribution plans sponsored by LNC for eligible employees. Our expense for these plans was $114 million, $99 million and $104 million, for the years ended December 31, 2023, 2022 and 2021, respectively. Deferred Compensation Plans We sponsor non-qualified, unfunded, deferred compensation plans for certain current and former agents. Certain current employees participate in non-qualified, unfunded, deferred compensation plans sponsored by LNC. The results of certain notional investment options within some of the plans are hedged by total return swaps. Our expenses increase or decrease in direct proportion to the change in market value of the participants’ investment options. Participants of certain plans are able to select LNC stock as a notional investment option; however, it is not hedged by the total return swaps and is a primary source of expense volatility related to these plans. Our expense for these plans was $22 million, $12 million and $18 million for the years ended December 31, 2023, 2022 and 2021, respectively. For further discussion of total return swaps related to our deferred compensation plans, see Note 6 Information (in millions) with respect to these plans was as follows: As of December 31, 2023 2022 Total liabilities (1) $ 695 $ 623 Investments dedicated to fund liabilities (2) 233 206 (1) Reported in other liabilities on the Consolidated Balance Sheets. (2) |
Stock-Based Incentive Compensat
Stock-Based Incentive Compensation Plans | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Incentive Compensation Plans | Stock-Based Incentive Compensation Plans Our employees and agents are included in LNC’s various stock-based incentive compensation plans that provide for the issuance of stock options, performance shares and restricted stock units (“RSUs”), among other types of awards. LNC issues new shares to satisfy option exercises and vested performance shares and RSUs. Total compensation expense (in millions) by award type for stock-based incentive compensation plans was as follows: For the Years Ended December 31, 2023 2022 2021 Stock options $ 7 $ 6 $ 8 Performance shares 12 9 17 RSUs 40 33 33 Total $ 59 $ 48 $ 58 Recognized tax benefit $ 9 $ 11 $ 12 |
Contingencies and Commitments
Contingencies and Commitments | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies and Commitments | 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, the Financial Industry Regulatory Authority and other regulatory bodies regularly make inquiries and conduct examinations or investigations concerning our compliance with, among other things, insurance laws, securities laws, laws governing the activities of broker-dealers, registered investment advisers and unclaimed property laws. LNL and its affiliates are involved in various pending or threatened legal or regulatory proceedings, including purported class actions, arising from the conduct of business both in the ordinary course and otherwise. In some of the matters, very large and/or indeterminate amounts, including punitive and treble damages, are sought. Modern pleading practice in the U.S. permits considerable variation in the assertion of monetary damages or other relief. Jurisdictions may permit claimants not to specify the monetary damages sought or may permit claimants to state only that the amount sought is sufficient to invoke the jurisdiction of the trial court. In addition, jurisdictions may permit plaintiffs to allege monetary damages in amounts well exceeding verdicts obtained in the jurisdiction for similar matters. This variability in pleadings, together with the actual experiences of LNL in litigating or resolving through settlement numerous claims over an extended period of time, demonstrates to management that the monetary relief which may be specified in a lawsuit or claim bears little relevance to its merits or disposition value. Due to the unpredictable nature of litigation, the outcome of a litigation matter and the amount or range of potential loss at particular points in time is normally difficult to ascertain. Uncertainties can include how fact finders will evaluate documentary evidence and the credibility and effectiveness of witness testimony, and how trial and appellate courts will apply the law in the context of the pleadings or evidence presented, whether by motion practice, or at trial or on appeal. Disposition valuations are also subject to the uncertainty of how opposing parties and their counsel will themselves view the relevant evidence and applicable law. We establish liabilities for litigation and regulatory loss contingencies when information related to the loss contingencies shows both that it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. It is possible that some matters could require us to pay damages or make other expenditures or establish accruals in amounts that could not be estimated as of December 31, 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 December 31, 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. On March 7, 2024, the parties entered into a settlement agreement, which is subject to court approval. The provisional settlement encompasses policies that are at issue in the Glover case, which also includes all policies in the lawsuits captioned TVPX ARS INC., as Securities Intermediary for Consolidated Wealth Management, LTD. v. The Lincoln National Life Insurance Company and Vida Longevity Fund, LP v. Lincoln Life & Annuity Company of New York , both of which are described below, and one additional case to which an affiliate of LNL is a party, Iwanski v. First Penn-Pacific Life Insurance Company , which has been previously disclosed by our parent company, LNC. The Glover plaintiffs’ motion for preliminary approval of the provisional settlement was filed on March 8, 2024. The provisional settlement, which is subject to both preliminary and final approval of the court, consists of a $147.5 million pre-tax cash payment for Glover class members (inclusive of all policyholders in TVPX ARS INC., Vida and Iwanski ). 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. On December 27, 2023, the court ordered that supplemental notice of the class settlement be mailed to a small percentage of settlement class members who had not been sent the initial class notice. Those policyholders own policies representing less than 0.14% of the total of all Policy Claim Amounts (as defined in the parties’ settlement agreement) and have until 45 days after the completion of supplemental notice to object to or opt out of the settlement. Certain of the policyholders who did not participate in the settlement are plaintiffs in Brighton Trustees, LLC, et al. v. The Lincoln National Life Insurance Company and Ryan K. Crayne, on behalf of and as a trustee for Carlton Peak Trust v. The Lincoln National Life Insurance Company discussed further below. The remaining policyholders who are not participants 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. On December 27, 2023, the court ordered that supplemental notice of the class settlement be mailed to a small percentage of settlement class members who had not been sent the initial class notice. Those policyholders own policies representing less than 0.14% of the total of all Policy Claim Amounts (as defined in the parties’ settlement agreement) and have until 45 days after the completion of supplemental notice to object to or opt out of the settlement. Certain of the policyholders who did not participate in the settlement are plaintiffs in Brighton Trustees, LLC, et al. v. The Lincoln National Life Insurance Company and Ryan K. Crayne, on behalf of and as a trustee for Carlton Peak Trust v. The Lincoln National Life Insurance Company discussed further below. The remaining policyholders who are not participants 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. On March 7, 2024, the parties in Glover v. Connecticut General Life Insurance Company and The Lincoln National Life Insurance Company (discussed above) entered into a settlement agreement, which is subject to court approval. The provisional settlement encompasses policies that are at issue in this case, as the Glover case is inclusive of all policies in this case, as well as in the lawsuit captioned Vida Longevity Fund, LP v. Lincoln Life & Annuity Company of New York (discussed below), and one additional case to which an affiliate of LNL is a party, Iwanski v. First Penn-Pacific Life Insurance Company , which has been previously disclosed by our parent company, LNC. The Glover plaintiffs’ motion for preliminary approval of the provisional settlement was filed on March 8, 2024. The provisional settlement, which is subject to both preliminary and final approval of the court, consists of a $147.5 million pre-tax cash payment for Glover class members (inclusive of all policyholders in TVPX ARS INC., Vida and Iwanski ). A motion has been filed to stay the proceedings in this matter (as well as the Iwanski matter) pending the completion of the settlement approval process in Glover . 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. On March 7, 2024, the parties in Glover v. Connecticut General Life Insurance Company and The Lincoln National Life Insurance Company (discussed above) entered into a settlement agreement, which is subject to court approval. The provisional settlement encompasses policies that are at issue in this case, as the Glover case is inclusive of all policies in this case, as well as in the lawsuit captioned TVPX ARS INC., as Securities Intermediary for Consolidated Wealth Management, LTD. v. The Lincoln National Life Insurance Company (discussed above), and one additional case to which an affiliate of LNL is a party, Iwanski v. First Penn-Pacific Life Insurance Company , which has been previously disclosed by our parent company, LNC. The Glover plaintiffs’ motion for preliminary approval of the provisional settlement was filed on March 8, 2024. The provisional settlement, which is subject to both preliminary and final approval of the court, consists of a $147.5 million pre-tax cash payment for Glover class members (inclusive of all policyholders in T VPX ARS INC., Vida and Iwanski ). On March 8, 2024, we wrote to the court requesting a pre-motion conference in advance of LLANY’s planned motion to stay proceedings in this matter pending the completion of the settlement approval process in Glover . 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. Ryan K. Crayne, on behalf of and as trustee for Carlton Peak Trust v. The Lincoln National Life Insurance Company , pending in the U.S. District Court for the Eastern District of Pennsylvania, Case No. 2:24-cv-00053-GJP, is a civil action filed on November 17, 2023. On January 4, 2024, upon the parties’ stipulation, the U.S. District Court for the Northern District of Indiana transferred the case to the U.S. District Court for the Eastern District of Pennsylvania. Plaintiff purports to own claims regarding universal life policies originally issued by Jefferson-Pilot (now LNL). Among other things, plaintiff alleges 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. Plaintiff sought, and was granted, supplemental briefing before the U.S. Court of Appeals for the Second Circuit with respect to certain aspects of the New York Court of Appeals’ decision. The supplemental briefing was completed January 23, 2024. We are vigorously defending this matter. 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. Commitments Leases As of December 31, 2023 and 2022, we had operating lease ROU assets of $80 million and $110 million, respectively, and associated lease liabilities of $89 million and $119 million, respectively. The weighted-average discount rate was 3.7% and 2.8%, respectively, and the weighted-average remaining lease term was four years and five years, respectively, as of December 31, 2023 and 2022. Operating lease expense for the years ended December 31, 2023, 2022 and 2021, was $41 million, $45 million and $41 million, respectively, and reported in commissions and other expenses on the Consolidated Statements of Comprehensive Income (Loss). As of December 31, 2023 and 2022, we had finance lease assets of $5 million and $14 million, respectively, and associated finance lease liabilities of $27 million and $106 million, respectively. The accumulated amortization associated with the finance lease assets was $467 million and $458 million as of December 31, 2023 and 2022, respectively. These assets will continue to be amortized on a straight-line basis over the assets’ remaining lives. The weighted-average discount rate was 6.4% and 2.9%, respectively, and the weighted-average remaining lease term was two years and one year, respectively, as of December 31, 2023 and 2022. Finance lease expense (in millions) was as follows: For the Years Ended December 31, 2023 2022 2021 Amortization of finance lease assets (1) $ 9 $ 23 $ 38 Interest on finance lease liabilities (2) 5 4 3 Total $ 14 $ 27 $ 41 (1) Amortization of finance lease assets is reported in commissions and other expenses on the Consolidated Statements of Comprehensive Income (Loss). (2) Interest on finance lease liabilities is reported in interest and debt expense on the Consolidated Statements of Comprehensive Income (Loss). The table below presents cash flow information (in millions) related to leases: For the Years Ended December 31, 2023 2022 2021 Supplemental Cash Flow Information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 41 $ 47 $ 40 Financing cash flows from finance leases 83 74 62 Supplemental Non-Cash Information ROU assets obtained in exchange for new lease obligations: Operating leases $ – $ 6 $ 8 Our future minimum lease payments (in millions) under non-cancellable leases as of December 31, 2023, were as follows: Operating Leases Finance Leases 2024 $ 34 $ 18 2025 26 7 2026 22 4 2027 15 – 2028 8 – Thereafter 7 – Total future minimum lease payments 112 29 Less: Amount representing interest 23 2 Present value of minimum lease payments $ 89 $ 27 As of December 31, 2023, we had no leases that had not yet commenced. Certain Financing Arrangements We periodically enter into sale-leaseback arrangements that do not meet the criteria of a sale for accounting purposes. As such, we account for these transactions as financing arrangements. As of December 31, 2023 and 2022, we had $595 million and $558 million, respectively, of financing obligations reported within other liabilities on the Consolidated Balance Sheets. Future payments due on certain financing arrangements (in millions) as of December 31, 2023, were as follows: 2024 $ 152 2025 172 2026 224 2027 127 2028 10 Thereafter 6 Total future minimum lease payments 691 Less: Amount representing interest 96 Present value of minimum lease payments $ 595 Vulnerability from Concentrations As of December 31, 2023, we did not have a concentration of: business transactions with a particular customer or lender; sources of supply of labor or services used in the business; or a market or geographic area in which business is conducted that makes us vulnerable to an event that is at least reasonably possible to occur in the near term and which could cause a severe impact to our financial condition. For information on our investment and reinsurance concentrations, see Notes 4 8 Other Contingency Matters State guaranty funds assess insurance companies to cover losses to contract holders of insolvent or rehabilitated companies. Mandatory assessments may be partially recovered through a reduction in future premium taxes in some states. We have accrued for expected assessments and the related reductions in future state premium taxes, which net to assessments (recoveries) of $(1) million and $(3) million as of December 31, 2023 and 2022, respectively. |
Shares and Stockholder's Equity
Shares and Stockholder's Equity | 12 Months Ended |
Dec. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
Shares and Stockholder's Equity | Shares and Stockholder’s Equity All authorized and issued shares of LNL are owned by LNC. AOCI The following summarizes the components and changes in AOCI (in millions): For the Years Ended December 31, 2023 2022 2021 Unrealized Gain (Loss) on Fixed Maturity AFS Securities and Certain Other Investments Balance as of beginning-of-year $ (8,526) $ 9,153 $ 8,993 Cumulative effect from adoption of new accounting standards – – 3,584 Unrealized holding gains (losses) arising during the year 2,122 (24,475) (4,478) Change in foreign currency exchange rate adjustment 178 (321) (143) Change in future contract benefits and policyholder account balances, net of reinsurance 638 2,292 893 Income tax benefit (expense) (650) 4,815 797 Less: Reclassification adjustment for gains (losses) included in net income (loss) (3,425) (13) 624 Income tax benefit (expense) 719 3 (131) Balance as of end-of-year $ (3,532) $ (8,526) $ 9,153 Unrealized Gain (Loss) on Derivative Instruments Balance as of beginning-of-year $ 301 $ 258 $ 42 Cumulative effect from adoption of new accounting standard – – 25 Unrealized holding gains (losses) arising during the year 162 (154) 141 Change in foreign currency exchange rate adjustment (169) 312 152 Income tax benefit (expense) 2 (34) (63) Less: Reclassification adjustment for gains (losses) included in net income (loss) 60 103 49 Income tax benefit (expense) (13) (22) (10) Balance as of end-of-year $ 249 $ 301 $ 258 Market Risk Benefit Non-Performance Risk Gain (Loss) Balance as of beginning-of-year $ 1,739 $ 1,951 $ – Cumulative effect from adoption of new accounting standard – – 2,874 Adjustment arising during the year (854) (267) (1,174) Income tax benefit (expense) 184 55 251 Balance as of end-of-year $ 1,069 $ 1,739 $ 1,951 Policyholder Liability Discount Rate Remeasurement Gain (Loss) Balance as of beginning-of-year $ 790 $ (1,101) $ – Cumulative effect from adoption of new accounting standard – – (1,661) Adjustment arising during the year (187) 2,406 711 Income tax benefit (expense) 42 (515) (151) Balance as of end-of-year $ 645 $ 790 $ (1,101) Funded Status of Employee Benefit Plans Balance as of beginning-of-year $ (17) $ (11) $ (14) Adjustment arising during the year 1 (6) 4 Income tax benefit (expense) – – (1) Balance as of end-of-year $ (16) $ (17) $ (11) The following summarizes the reclassifications out of AOCI (in millions) and the associated line item in the Consolidated Statements of Comprehensive Income (Loss): For the Years Ended December 31, 2023 2022 2021 Unrealized Gain (Loss) on Fixed Maturity AFS Securities and Certain Other Investments Reclassification $ (4,014) $ (13) $ 624 Realized gain (loss) Associated change in future contract benefits 589 – – Benefits Reclassification before income tax benefit (expense) (3,425) (13) 624 Income (loss) before taxes Income tax benefit (expense) 719 3 (131) Federal income tax expense (benefit) Reclassification, net of income tax $ (2,706) $ (10) $ 493 Net income (loss) Unrealized Gain (Loss) on Derivative Instruments Interest rate contracts $ (1) $ 2 $ 3 Net investment income Foreign currency contracts 54 62 48 Net investment income Foreign currency contracts 7 39 (2) Realized gain (loss) Reclassifications before income tax benefit (expense) 60 103 49 Income (loss) before taxes Income tax benefit (expense) (13) (22) (10) Federal income tax expense (benefit) Reclassifications, net of income tax $ 47 $ 81 $ 39 Net income (loss) |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | Segment 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. The following is a brief description of these segments and Other Operations. The Annuities segment provides tax-deferred investment growth and lifetime income opportunities for its clients by offering variable annuities (including RILA) and fixed annuities (including indexed). The Life Insurance segment focuses on the creation and protection of wealth through life insurance products, including term insurance, both single (including UL, corporate-owned UL and VUL and bank-owned UL and VUL products) and survivorship versions of IUL and VUL products, linked-benefit products (which are UL and VUL with riders providing for long-term care costs), and critical illness and long-term care riders, which can be attached to IUL or VUL policies. The Group Protection segment offers group non-medical insurance products and services, including short- and long-term disability, statutory disability and paid family medical leave administration and absence management services, term life, dental, vision and accident, critical illness and hospital indemnity benefits and services to the employer marketplace through various forms of employee-paid and employer-paid plans. The Retirement Plan Services segment provides employer-sponsored defined benefit and individual retirement accounts, as well as individual and group variable annuities, group fixed annuities and mutual-fund based programs in the retirement plan marketplace. Other Operations includes investments related to our excess capital; benefit plan obligations; the results of certain disability income business; our run-off institutional pension business, the majority of which was sold on a group annuity basis; debt costs; Spark program expense; and other corporate investments. Segment operating revenues and income (loss) from operations are internal measures used by our management and Board of Directors to evaluate and assess the results of our segments. Income (loss) from operations is GAAP net income excluding the after-tax effects of the following items, as applicable: • 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. We use our prevailing corporate federal income tax rate of 21%, where applicable, net of the impacts related to dividends received deduction and foreign tax credits and any other permanent differences for events recognized differently in our financial statements and federal income tax returns. 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 Years Ended December 31, 2023 2022 2021 Revenues Operating revenues: Annuities (1) $ 2,625 $ 4,102 $ 4,258 Life Insurance 6,362 6,344 6,938 Group Protection 5,560 5,303 4,994 Retirement Plan Services 1,290 1,257 1,306 Other Operations (1) (778) 133 158 Revenue adjustments from annuity and life insurance product features 99 872 818 Credit loss-related adjustments (74) (129) 109 Investment gains (losses) (4,080) 19 654 Changes in the fair value of reinsurance-related embedded derivatives, trading securities and certain mortgage loans (22) 588 165 GLB rider fees ceded to LNBAR (923) (932) (888) Total revenues (1) $ 10,059 $ 17,557 $ 18,512 For the Years Ended December 31, 2023 2022 2021 Net Income (Loss) Income (loss) from operations: Annuities $ 840 $ 948 $ 1,089 Life Insurance (126) (1,933) 497 Group Protection 297 40 (165) Retirement Plan Services 155 198 235 Other Operations (356) (374) (244) Net annuity product features, after-tax 1,295 416 1,866 Net life insurance product features, after-tax 148 21 (1) Credit loss-related adjustments, after-tax (58) (102) 86 Investment gains (losses), after-tax (3,210) 15 516 Changes in the fair value of reinsurance-related embedded derivatives, trading securities and certain mortgage loans, after-tax (18) 465 130 GLB rider fees ceded to LNBAR, after-tax (728) (735) (701) Impairment of intangibles – (634) – Transaction and integration costs related to mergers, acquisitions and divestitures, after-tax (2) (27) – (11) Net income (loss) $ (1,788) $ (1,675) $ 3,297 (1) Includes ceded insurance premiums primarily related to the Fortitude Re reinsurance transaction effective in the fourth quarter of 2023. For more information, see Note 8. (2) Includes costs pertaining to the Fortitude Re reinsurance transaction and the planned sale of LNC’s wealth management business. For more information, see Note 1 Note 8 Other segment information (in millions) was as follows: For the Years Ended December 31, 2023 2022 2021 Net Investment Income Annuities $ 1,744 $ 1,387 $ 1,314 Life Insurance 2,515 2,464 3,054 Group Protection 336 333 364 Retirement Plan Services 999 966 982 Other Operations 118 124 125 Total net investment income $ 5,712 $ 5,274 $ 5,839 For the Years Ended December 31, 2023 2022 2021 Federal Income Tax Expense (Benefit) Annuities $ 79 $ 128 $ 189 Life Insurance (62) (544) 112 Group Protection 79 11 (44) Retirement Plan Services 25 32 48 Other Operations (102) (84) (70) Net annuity product features 344 112 496 Net life insurance product features 39 5 – Credit loss-related adjustments (16) (27) 20 Investment gains (losses) (853) 4 140 Changes in the fair value of reinsurance-related embedded derivatives, trading securities and certain mortgage loans (5) 123 35 GLB rider fees ceded to LNBAR (194) (197) (186) Transaction and integration costs related to mergers, acquisitions and divestitures (7) – (3) Total federal income tax expense (benefit) (673) (437) 737 As of December 31, 2023 2022 Assets Annuities $ 186,716 $ 165,643 Life Insurance 107,529 97,373 Group Protection 9,741 9,830 Retirement Plan Services 46,969 42,275 Other Operations 23,021 20,461 Total assets $ 373,976 $ 335,582 |
Realized Gain (Loss)
Realized Gain (Loss) | 12 Months Ended |
Dec. 31, 2023 | |
Realized Gain (Loss) [Abstract] | |
Realized Gain (Loss) | Realized Gain (Loss) Details underlying realized gain (loss) (in millions) reported on the Consolidated Statements of Comprehensive Income (Loss) were as follows: For the Years Ended December 31, 2023 2022 2021 Fixed maturity AFS securities: (1) Gross gains $ 627 $ 37 $ 660 Gross losses (428) (50) (36) Credit loss benefit (expense) (2) (21) (14) (11) Intent to sell impairments (4,213) – – Realized gain (loss) on equity securities (3) (6) 12 41 Credit loss benefit (expense) on mortgage loans on real estate (16) (3) 111 Credit loss benefit (expense) on reinsurance-related assets (4) (35) (112) 7 Realized gain (loss) on the mark-to-market on certain instruments (5)(6) (509) 683 169 Indexed product derivative results (7) (232) 74 22 GLB rider fees ceded to LNBAR and attributed fees (112) (168) (91) Other realized gain (loss) 11 (41) (13) Total realized gain (loss) $ (4,934) $ 418 $ 859 (1) 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. Pursuant to the applicable accounting guidance, the Company impaired the securities in a loss position down to fair market value upon entry into the agreements in the second quarter of 2023 and recognized additional impairment on certain of these securities during the third quarter of 2023 due to higher interest rates. Interest rates declined during the fourth quarter of 2023, which resulted in recognition of a $295 million pre-tax net gain upon close of the transaction, included in gross gains and gross losses. See Notes 4 and 8 for additional information. (2) Includes changes in the allowance for credit losses as well as direct write-downs to amortized cost as a result of negative credit events. (3) Includes mark-to-market adjustments on equity securities still held of $8 million, $7 million and $44 million for the years ended December 31, 2023, 2022 and 2021, 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 . Also includes an $87 million pre-tax loss related to interest rate futures used to hedge the assets used as consideration in the Fortitude Re reinsurance transaction. See Note 8 for additional information. (6) Includes gains and losses from fair value changes on mortgage loans on real estate accounted for under the fair value option of $(11) million, $(24) million and $3 million for the years ended December 31, 2023, 2022 and 2021, 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. |
Commissions and Other Expenses
Commissions and Other Expenses | 12 Months Ended |
Dec. 31, 2023 | |
Commissions and Other Expenses [Abstract] | |
Commissions and Other Expenses | Commissions and Other Expenses Details underlying commissions and other expenses (in millions) were as follows: For the Years Ended December 31, 2023 2022 2021 Commissions $ 2,082 $ 2,201 $ 2,227 General and administrative expenses 2,427 2,200 2,187 DAC and VOBA deferrals, net of amortization (171) (346) (321) Broker-dealer expenses 444 419 441 Taxes, licenses and fees 333 344 358 Expenses associated with reserve financing and LOCs 58 60 57 Specifically identifiable intangible asset amortization 37 37 37 Other amortization 5 12 11 Transaction and integration costs related to mergers, acquisitions and divestitures 34 – 14 Total $ 5,249 $ 4,927 $ 5,011 |
Federal Income Taxes
Federal Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Federal Income Taxes | Federal Income Taxes The federal income tax expense (benefit) on continuing operations (in millions) was as follows: For the Years Ended December 31, 2023 2022 2021 Current $ (255) $ (24) $ 20 Deferred (418) (413) 717 Federal income tax expense (benefit) $ (673) $ (437) $ 737 A reconciliation of the effective tax rate differences (in millions) was as follows: For the Years Ended December 31, 2023 2022 2021 Income (loss) before taxes $ (2,461) $ (2,112) $ 4,034 Federal statutory rate 21% 21% 21% Federal income tax expense (benefit) at federal statutory rate (517) (444) 847 Effect of: Tax-preferred investment income (1) (126) (90) (88) Tax credits (40) (42) (26) Excess tax expense (benefit) from stock-based compensation 3 (1) – Goodwill impairment – 133 – Other items 7 7 4 Federal income tax expense (benefit) $ (673) $ (437) $ 737 Effective tax rate 27% 21% 18% (1) Relates primarily to separate account dividends eligible for the dividends-received deduction. The federal income tax asset (liability) (in millions) was as follows: As of December 31, 2023 2022 Current $ 546 $ 353 Deferred 49 734 Total federal income tax asset (liability) $ 595 $ 1,087 Significant components of our deferred tax assets and liabilities (in millions) were as follows: As of December 31, 2023 2022 Deferred Tax Assets Insurance liabilities and reinsurance-related balances $ 322 $ 231 Compensation and benefit plans 175 152 Intangibles 18 21 Net unrealized loss on fixed maturity AFS securities 1,246 2,161 Net unrealized loss on trading securities 33 70 Investment activity 91 296 Tax credits 103 – Net operating losses 87 278 Capital losses 93 – Deferred gain on reinsurance 400 30 Total deferred tax assets $ 2,568 $ 3,239 Deferred Tax Liabilities DAC and VOBA $ 1,906 $ 1,769 Reinsurance-related embedded derivative assets 104 143 MRB-related activity 286 228 Other 223 365 Total deferred tax liabilities $ 2,519 $ 2,505 Net deferred tax asset (liability) $ 49 $ 734 As of December 31, 2023, we have $103 million of federal income tax credits that can be carried forward to 2030 through 2033. As of December 31, 2023, we have $414 million of net operating losses to carry forward to future years. As of December 31, 2023, we have $442 million of capital losses to carry forward to future years. The net operating losses arose in tax years 2018 and 2021 and, under the Tax Cuts and Jobs Act changes, have an unlimited carryforward period. The capital losses arose in tax year 2023 and can be carried back three years and forward five years. As a result, management believes that it is more likely than not that the deferred tax asset associated with the loss carryforwards will be realized. Inclusive of the tax attribute for the net operating losses, although realization is not assured, management believes that it is more likely than not that we will realize the benefits of all our deferred tax assets, and, accordingly, no valuation allowance has been recorded. We are subject to examination by U.S. federal, state, local and non-U.S. income authorities. With few exceptions for limited scope review, we are no longer subject to U.S. federal examinations for years before 2019. In the first quarter of 2021, the Internal Revenue Service commenced an examination of our 2014, 2015, 2016 and 2017 refund claims. We are currently under examination by several state and local taxing jurisdictions; however, we do not expect these examinations will materially impact us. A reconciliation of the gross unrecognized federal tax benefits (in millions) was as follows: For the Years Ended December 31, 2023 2022 Balance as of beginning-of-year $ 59 $ 64 Decreases for prior year tax positions (6) (6) Increases for prior year tax positions 23 1 Balance as of end-of-year $ 76 $ 59 As of December 31, 2023 and 2022, $66 million and $43 million, respectively, of our gross unrecognized federal tax benefits presented above, if recognized, would have affected our federal income tax expense (benefit) and our effective tax rate. We anticipate that it is reasonably possible that unrecognized tax benefits primarily associated with separate account dividends-received deduction, tax credits and compensation, upon completion of our ongoing refund claims review, will decrease by $35 million by the end of 2024. We recognize interest and penalties accrued, if any, related to unrecognized tax benefits as a component of tax expense. For the years ended December 31, 2023, 2022 and 2021, we recognized no interest and penalty expense (benefit), and there was no accrued interest and penalty expense related to the unrecognized tax benefits as of December 31, 2023 and 2022. In August 2022, the Inflation Reduction Act of 2022 was passed by the U.S. Congress and signed into law by President Biden. The Inflation Reduction Act of 2022 established a new 15% corporate alternative minimum tax for corporations whose average adjusted net income for any consecutive three-year period beginning after December 31, 2022, exceeds $1.0 billion. This provision became effective for tax years beginning after December 31, 2022. We determined that we were not within the scope of the corporate alternative minimum tax for 2023. |
Statutory Information and Restr
Statutory Information and Restrictions | 12 Months Ended |
Dec. 31, 2023 | |
Statutory Information and Restrictions [Abstract] | |
Statutory Accounting Practices Disclosure | Statutory Information and Restrictions We prepare financial statements in accordance with statutory accounting principles (“SAP”) prescribed or permitted by the insurance departments of our respective states of domicile, which may vary materially from GAAP. Prescribed SAP includes the Accounting Practices and Procedures Manual of the National Association of Insurance Commissioners (“NAIC”) as well as state laws, regulations and administrative rules. Permitted SAP encompasses all accounting practices not so prescribed. The principal differences between statutory financial statements and financial statements prepared in accordance with GAAP are that statutory financial statements do not reflect DAC, some bond portfolios may be carried at amortized cost, assets and liabilities are presented net of reinsurance, contract holder liabilities are generally valued using more conservative assumptions and certain assets are non-admitted. We are subject to the applicable laws and regulations of our respective states of domicile. Changes in these laws and regulations could change capital levels or capital requirements for the Company. Statutory capital and surplus, net gain (loss) from operations, after-tax, net income (loss) and dividends to the LNC holding company amounts (in millions) below consist of all or a combination of the following entities: LNL, LLANY, Lincoln Reinsurance Company of South Carolina, Lincoln Reinsurance Company of Vermont I, Lincoln Reinsurance Company of Vermont III, Lincoln Reinsurance Company of Vermont IV, Lincol n Reinsurance Company of Vermont V, Lincoln Reinsurance Company of Vermont VI and Lincoln Reinsurance Company of Vermont VII. As of December 31, 2023 2022 U.S. capital and surplus $ 8,026 $ 8,507 For the Years Ended December 31, 2023 2022 2021 U.S. net gain (loss) from operations, after-tax $ (2,495) $ 1,708 $ (1,285) U.S. net income (loss) (2,924) 1,965 (569) U.S. dividends to LNC holding company 495 645 1,910 State Prescribed and Permitted Practices The states of domicile for LNL and LLANY, Indiana and New York, respectively, have adopted certain prescribed or permitted accounting practices that differ from those found in NAIC SAP. These prescribed practices are the calculation of reserves on universal life policies based on the Indiana universal life method as prescribed by the state of Indiana for policies issued before January 1, 2006, the use of a more conservative valuation interest rate on certain annuities prescribed by the states of Indiana and New York. Also, the state of New York prescribes use of the continuous Commissioners’ Annuity Reserve Valuation Method in the calculation of reserves and use of minimum reserve methods and assumptions for variable annuity and individual life insurance contracts that may be more conservative than those required by NAIC SAP. The statutory permitted practices allow accounting for certain derivative assets at amortized cost and allow determining certain indexed annuity and indexed universal life statutory reserve calculations with the assumption that the market value of the related liability call option(s) associated with the current index term is zero. At the conclusion of the index term, credited interest is reflected in the reserve as realized, based on actual index performance. The statutory accounting practices also allow accounting for certain group fixed annuity assets at general account balances. The Vermont reinsurance subsidiaries also have certain accounting practices permitted by the state of Vermont that differ from those found in NAIC SAP. One permitted practice involves accounting for the lesser of the face amount of all amounts outstanding under an LOC and the value of the Valuation of Life Insurance Policies Model Regulation (“XXX”) additional statutory reserves as an admitted asset and a form of surplus as of December 31, 2023 and 2022. Another permitted practice involves the acquisition of an LLC note in exchange for a variable value surplus note that is recognized as an admitted asset and a form of surplus as of December 31, 2023 and 2022. Lastly, the state of Vermont has permitted a practice to account for certain excess of loss reinsurance agreements with unaffiliated reinsurers as an asset and form of surplus as of December 31, 2023 and 2022. These permitted practices are related to structures that continue to be allowed in accordance with the grandfathered structures under the provisions of Actuarial Guideline 48 (“AG48”) or are compliant under AG48 requirements. The favorable (unfavorable) effects on statutory surplus compared to NAIC statutory surplus from the use of these prescribed and permitted practices (in millions) were as follows: As of December 31, 2023 2022 State Prescribed Practices Calculation of reserves using the Indiana universal life method $ (1) $ 3 Conservative valuation rate on certain annuities (1) (36) Calculation of reserves using continuous CARVM (1) (1) Conservative Reg 213 reserves on variable annuity and individual life contracts (31) (37) State Permitted Practice Derivative instruments and equity indexed reserves (170) 14 Assets in group fixed annuity contracts held at general account balances 332 436 Vermont Subsidiaries Permitted Practices Lesser of LOC and XXX additional reserve as surplus 1,776 1,838 LLC notes and variable value surplus notes 1,444 1,547 Excess of loss reinsurance agreements 563 549 The NAIC has adopted RBC requirements for life insurance companies to evaluate the adequacy of statutory capital and surplus in relation to investment and insurance risks. The requirements provide a means of measuring the minimum amount of statutory surplus appropriate for an insurance company to support its overall business operations based on its size and risk profile. Under RBC requirements, regulatory compliance is determined by the ratio of a company’s total adjusted capital, as defined by the NAIC, to its company action level of RBC (known as the “RBC ratio”), also as defined by the NAIC. The company action level may be triggered if the RBC ratio is between 75% and 100%, which would require the insurer to submit a plan to the regulator detailing corrective action it proposes to undertake. As of December 31, 2023, the Company’s RBC ratio was approximately four times the aforementioned company action level RBC. We are subject to certain insurance department regulatory restrictions as to the transfer of funds and payment of dividends to the holding company. Under Indiana laws and regulations, LNL may pay dividends to LNC without prior approval of the Indiana Insurance Commissioner (the “Commissioner”), only from unassigned surplus and must receive prior approval of the Commissioner to pay a dividend if such dividend, along with all other dividends paid within the preceding 12 consecutive months, would exceed the statutory limitation. The current statutory limitation is the greater of 10% of the insurer’s contract holders’ surplus, as shown on its last annual statement on file with the Commissioner or the insurer’s statutory net gain from operations for the previous 12 months , but in no event to exceed statutory unassigned surplus. Indiana law gives the Commissioner broad discretion to disapprove requests for dividends in excess of these limits. LNL’s subsidiary, LLANY, a New York-domiciled insurance company, is bound by similar restrictions under the laws of New York. Under New York law, the applicable statutory limitation on dividends is equal to the lesser of 10% of surplus to contract holders as of the immediately preceding calendar year or net gain from operations for the immediately preceding calendar year, not including realized capital gains. We expect that we could pay dividends to LNC of approximately $780 million in 2024 without prior approval from the Commissioner of Insurance. All payments of principal and interest on surplus notes must be approved by the respective Commissioner of Insurance. |
Supplemental Disclosures of Cas
Supplemental Disclosures of Cash Flow Data | 12 Months Ended |
Dec. 31, 2023 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Disclosures of Cash Flow Data | Supplemental Disclosures of Cash Flow Data The following summarizes our supplemental cash flow data (in millions): For the Years Ended December 31, 2023 2022 2021 Net cash paid (received) for: Interest $ 187 $ 126 $ 115 Income taxes (110) (61) 29 Non-cash transactions: Net increase (decrease) in fixed maturity AFS securities, other investments and accrued investment income in connection with reinsurance transactions (20,264) 54 (3,700) Establishment of funds withheld liability in connection with a reinsurance transaction (49) – – |
Transactions with Affiliates
Transactions with Affiliates | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
Transactions with Affiliates | Transactions with Affiliates The following summarizes transactions with affiliates (in millions) and the associated line item on the Consolidated Balance Sheets: As of December 31, 2023 2022 Assets with affiliates: Inter-company notes $ 1,063 $ 1,216 Fixed maturity AFS securities Assumed reinsurance contracts 1 – Policy Loans Deferred acquisition costs, value of business Assumed/ceded reinsurance contracts (131) (138) acquired and deferred sales inducements Accrued inter-company interest receivable 16 13 Accrued investment income Reinsurance recoverables, net of allowance Ceded reinsurance contracts 15,563 2,187 for credit losses Ceded reinsurance contracts 642 899 Other assets Cash management agreement 857 124 Other assets Service agreement receivable 41 6 Other assets Liabilities with affiliates: Assumed reinsurance contracts 18 17 Future contract benefits Assumed reinsurance contracts 352 361 Policyholder account balances Inter-company short-term debt 840 562 Short-term debt Inter-company long-term debt 2,195 2,269 Long-term debt Ceded reinsurance contracts 5,862 2,517 Funds withheld reinsurance liabilities Ceded reinsurance contracts 897 (31) Other liabilities Accrued inter-company interest payable 18 15 Other liabilities Service agreement payable 37 41 Other liabilities Assumed/ceded reinsurance contracts 4,387 158 Other liabilities Equity with affiliates: Accumulated other comprehensive income – 774 55 Accumulated other comprehensive assumed/ceded income (loss) The following summarizes transactions with affiliates (in millions) and the associated line item on the Consolidated Statements of Comprehensive Income (Loss): For the Years Ended December 31, 2023 2022 2021 Revenues with affiliates: Premiums received on assumed (paid on ceded) reinsurance contracts $ (498) $ (421) $ (468) Insurance premiums Fees for management of general account (156) (140) (138) Net investment income Net investment income on ceded funds withheld treaties (238) (161) (113) Net investment income Net investment income on inter-company notes 65 40 29 Net investment income Realized gains (losses) on ceded reinsurance contracts: Other gains (losses) (9) 631 94 Realized gain (loss) Reinsurance-related settlements 1,717 (1,068) 1,626 Realized gain (loss) Amortization of deferred gain (loss) on reinsurance Amortization of deferred gain contracts 17 3 3 (loss) on business sold through reinsurance Other revenues (171) – – Other revenues Benefits and expenses with affiliates: Reinsurance (recoveries) benefits on ceded reinsurance (507) (247) (430) Benefits Interest credited on assumed reinsurance contracts 12 47 48 Interest credited Market risk benefit (gain) loss on ceded reinsurance contracts 1,129 3,543 2,199 Market risk benefit (gain) loss Policyholder liability remeasurement (gain) loss Policyholder liability remeasurement on ceded reinsurance contracts – (321) 64 (gain) loss Ceded reinsurance contracts (13) (26) (7) Commissions and other expenses Service agreement payments (receipts) (17) (53) (29) Commissions and other expenses Interest expense on inter-company debt 148 120 107 Interest and debt expense Inter-Company Notes LNC issues inter-company notes to us for a predetermined face value to be repaid by LNC at a predetermined maturity with a specified interest rate. Cash Management Agreement In order to manage our capital more efficiently, we participate in an inter-company cash management program where LNC can lend to or borrow from us to meet short-term borrowing needs. The cash management program is essentially a series of demand loans, which are permitted under applicable insurance laws, among LNC and its affiliates that reduces overall borrowing costs by allowing LNC and its subsidiaries to access internal resources instead of incurring third-party transaction costs. The borrowing and lending limit is currently 3% of our admitted assets as of December 31, 2023. Service Agreements In accordance with service agreements with LNC and other subsidiaries of LNC for personnel and facilities usage, general management services and investment management services, we receive services from and provide services to affiliated companies and receive an allocation of corporate overhead. Corporate overhead expenses are allocated based on specific methodologies for each function. The majority of the expenses are allocated based on the following methodologies: headcount, capital, investments by product, account values, weighted policies in force and sales. Ceded Reinsurance Contracts As discussed in Note 8 Substantially all reinsurance ceded to affiliated companies is with unauthorized companies. To take reserve credit for such reinsurance: the reinsurer holds assets in trust for our potential benefit; we hold assets from the reinsurer, including funds withheld under reinsurance treaties; and/or we are the beneficiary of LOCs that are obtained by the affiliate reinsurer and issued by banks. As of December 31, 2023 and 2022, the LOCs of which we are the beneficiary aggregated to $111 million and $1.5 billion, respectively. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Event On March 7, 2024, we entered into a settlement agreement, which is subject to court approval, encompassing the policies at issue in Glover v. Connecticut General Life Insurance Company and The Lincoln National Life Insurance Company , which also includes the policies in certain other cost of insurance litigation matters, as discussed in further detail in Note 18 $147.5 million pre-tax cash payment. We recorded a pre-tax legal expense for the year ended December 31, 2023 , of approximately $110 million within commissions and other expenses on the Consolidated Statements of Comprehensive Income (Loss) in respect of this provisional settlement. As of December 31, 2023 , we had accrued the total provisional settlement amount of $147.5 million , pre-tax. |
SCHEDULE I - CONSOLIDATED SUMMA
SCHEDULE I - CONSOLIDATED SUMMARY OF INVESTMENTS – OTHER THAN INVESTMENTS IN RELATED PARTIES | 12 Months Ended |
Dec. 31, 2023 | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Abstract] | |
CONSOLIDATED SUMMARY OF INVESTMENTS – OTHER THAN INVESTMENTS IN RELATED PARTIES | CONSOLIDATED SUMMARY OF INVESTMENTS – OTHER THAN INVESTMENTS IN RELATED PARTIES (in millions) Column A Column B Column C Column D As of December 31, 2023 Cost or Fair Carrying Type of Investment Amortized Cost Value Value Fixed Maturity Available-For-Sale Securities (1) Bonds: U.S. government bonds $ 414 $ 393 $ 393 Foreign government bonds 309 278 278 State and municipal bonds 2,675 2,542 2,542 Public utilities 11,010 9,982 9,982 All other corporate bonds 57,801 53,884 53,884 Mortgage-backed and asset-backed securities 15,795 14,989 14,989 Hybrid and redeemable preferred securities 227 232 232 Total fixed maturity available-for-sale securities 88,231 82,300 82,300 Equity Securities Common stocks: Banks, trusts and insurance companies 29 32 32 Industrial, miscellaneous and all other 41 38 38 Non-redeemable preferred securities 270 236 236 Total equity securities 340 306 306 Trading Securities 2,480 2,321 2,321 Mortgage loans on real estate (2) 19,024 17,330 18,873 Policy loans 2,463 N/A 2,463 Derivative investments 2,714 6,305 6,305 Other investments 4,757 4,757 4,757 Total investments $ 120,009 $ 117,325 (1) For investments deemed to have declines in value that are impairment-related, an allowance for credit losses is recorded to reduce the carrying value to their estimated realizable value. (2) Mortgage loans on real estate 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 at fair value where the fair value option has been elected. |
SCHEDULE III - CONSOLIDATED SUP
SCHEDULE III - CONSOLIDATED SUPPLEMENTARY INSURANCE INFORMATION | 12 Months Ended |
Dec. 31, 2023 | |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Abstract] | |
CONDENSED SUPPLEMENTARY INSURANCE INFORMATION | CONDENSED SUPPLEMENTARY INSURANCE INFORMATION (in millions) Column A Column B Column C Column D Column E Column F DAC Future Policyholder and Contract Unearned Account Insurance Segment VOBA Benefits Premiums (1) Balances Premiums (2) As of or For the Year Ended December 31, 2023 Annuities $ 4,304 $ 2,090 $ – $ 54,471 $ (1,584) Life Insurance 7,485 22,049 – 37,035 915 Group Protection 154 6,282 – – 5,014 Retirement Plan Services 244 – – 23,784 – Other Operations – 9,753 – 5,026 (929) Total $ 12,187 $ 40,174 $ – $ 120,316 $ 3,416 As of or For the Year Ended December 31, 2022 Annuities $ 4,336 $ 2,004 $ – $ 45,522 $ 165 Life Insurance 7,309 20,561 – 37,523 908 Group Protection 141 6,086 – – 4,768 Retirement Plan Services 241 – – 25,138 – Other Operations – 9,651 – 5,789 – Total $ 12,027 $ 38,302 $ – $ 113,972 $ 5,841 As of or For the Year Ended December 31, 2021 Annuities $ 4,328 $ 2,511 $ – $ 41,670 $ 116 Life Insurance 6,973 19,074 – 37,994 783 Group Protection 140 6,604 – – 4,450 Retirement Plan Services 240 – – 23,580 – Other Operations – 12,578 – 6,472 10 Total $ 11,681 $ 40,767 $ – $ 109,716 $ 5,359 (1) Unearned premiums are included in Column C, future contract benefits. (2) Includes amounts ceded to LNBAR. (in millions) Column A Column G Column H Column I Column J Column K Benefits Amortization Net and of DAC Other Investment Interest and Operating Premiums Segment Income Credited VOBA Expenses Written As of or For the Year Ended December 31, 2023 Annuities $ 1,744 $ (254) $ 443 $ 1,522 $ – Life Insurance 2,515 4,626 484 703 – Group Protection 336 4,025 100 1,347 – Retirement Plan Services 999 665 18 426 – Other Operations 118 (832) – 549 – Total $ 5,712 $ 8,230 $ 1,045 $ 4,547 $ – As of or For the Year Ended December 31, 2022 Annuities $ 1,387 $ 1,145 $ 442 $ 1,449 $ – Life Insurance 2,464 5,146 469 672 – Group Protection 333 4,039 97 1,219 – Retirement Plan Services 966 629 19 379 – Other Operations 124 104 – 347 – Total $ 5,274 $ 11,063 $ 1,027 $ 4,066 $ – As of or For the Year Ended December 31, 2021 Annuities $ 1,314 $ 1,012 $ 418 $ 1,565 $ – Life Insurance 3,054 5,119 471 692 – Group Protection 364 4,075 139 1,153 – Retirement Plan Services 982 616 19 387 – Other Operations 125 117 – 254 – Total $ 5,839 $ 10,939 $ 1,047 $ 4,051 $ – |
SCHEDULE IV - CONSOLIDATED REIN
SCHEDULE IV - CONSOLIDATED REINSURANCE | 12 Months Ended |
Dec. 31, 2023 | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Abstract] | |
CONSOLIDATED REINSURANCE | CONSOLIDATED REINSURANCE (in millions) Column A Column B Column C Column D Column E Column F Ceded Assumed Percentage to from of Amount Gross Other Other Net Assumed Description Amount Companies Companies Amount to Net As of or For the Year Ended December 31, 2023 Individual life insurance in-force (1) $ 2,071,893 $ 1,134,476 $ 7,739 $ 945,156 0.8 % Premiums: Annuities and life insurance (2) 10,249 5,132 87 5,204 1.7 % Accident and health insurance 3,412 36 4 3,380 0.1 % Total premiums $ 13,661 $ 5,168 $ 91 $ 8,584 As of or For the Year Ended December 31, 2022 Individual life insurance in-force (1) $ 1,997,539 $ 848,979 $ 9,010 $ 1,157,570 0.8 % Premiums: Annuities and life insurance (2) 10,236 2,336 98 7,998 1.2 % Accident and health insurance 3,243 38 4 3,209 0.1 % Total premiums $ 13,479 $ 2,374 $ 102 $ 11,207 As of or For the Year Ended December 31, 2021 Individual life insurance in-force (1) $ 1,808,596 $ 789,638 $ 10,651 $ 1,029,609 1.0 % Premiums: Annuities and life insurance (2) 10,227 2,208 91 8,110 1.1 % Accident and health insurance 3,050 41 6 3,015 0.2 % Total premiums $ 13,277 $ 2,249 $ 97 $ 11,125 (1) Includes Group Protection segment and Other Operations in-force amounts. (2) Includes insurance fees on universal life and other interest-sensitive products. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pay vs Performance Disclosure | |||
Net income (loss) | $ (1,788) | $ (1,675) | $ 3,297 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
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 |
Nature of Operations, Basis o_2
Nature of Operations, Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements are prepared in accordance with United States of America generally accepted accounting principles (“GAAP”). Certain GAAP policies, which significantly affect the determination of financial condition, results of operations and cash flows, are summarized below. |
Segment Reporting | 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 variable annuities level of aggregation includes RILA products, which are indexed variable annuities. 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 partnerships (“LPs”). 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. 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, goodwill and other intangibles, MRBs, future contract benefits, 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 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. 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 December 31, 2023 and 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. |
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”). 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 |
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). For debt securities where impairment has been recognized, the difference between the new amortized cost basis and the cash flows expected to be collected are accreted as interest income and recognized in net investment income 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 |
Equity Securities | Equity Securities |
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 |
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 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 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. 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 1 Note Note 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 annuity and life insurance 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, RILA, fixed indexed annuity, IUL and VUL products. Our RILA, fixed 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, RILA and VUL products. Put options are contracts that require the 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, 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 Lincoln National Reinsurance Company (Barbados) Limited (“LNBAR”), an affiliated reinsurer, 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: RILA, Fixed Indexed Annuity and IUL Contracts Embedded Derivatives Our RILA, fixed 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. Derivatives Related to Divestitures and Reinsurance Transactions We used interest rate futures contracts to hedge the interest rate risk related to the assets used as consideration in the Fortitude Re reinsurance transaction. These futures contracts required payment between our counterparty and us on a daily basis for changes in the associated future index prices. |
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., deferred acquisition costs or “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. Value of business acquired (“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 deferred sales inducements (“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 (“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, insurance premiums, benefits and DAC and VOBA 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. In a modified coinsurance or coinsurance with funds withheld reinsurance structured agreement, the investments that would have been sent to the reinsurer as premiums are withheld by us and remain on our Consolidated Balance Sheets, with the existing accounting maintained. A corresponding liability is recognized on our Consolidated Balance Sheets within funds withheld reinsurance liabilities representing our obligation to pay the reinsurer. This liability includes embedded derivatives, which are total return swaps with contractual returns that are attributable to various assets and liabilities associated with these reinsurance agreements. The changes in the embedded derivative liabilities are reported within realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). 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 deposit assets, net of allowance for credit losses 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. 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 limited payment life-contingent annuity contracts and non-participating traditional life insurance 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 limited payment life-contingent annuity contracts and non-participating traditional life insurance 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. 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. Where applicable, gains or losses recognized on reinsurance transactions are deferred and amortized into net income (loss) using an amortization basis reflective of the characteristics of the underlying ceded business. Our deferred gains and losses on reinsurance of our interest-sensitive life insurance products are recognized over the projected life of the policies, based on projected profitability or projected reserve development for blocks with negative profitability. Our deferred gains and losses on reinsurance of our annuity products are recognized over the period in which the majority of account balances is expected to run off. Deferred gains and losses are reported within other liabilities and other assets, respectively, on the Consolidated Balance Sheets. |
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 |
Other Assets and Other Liabilities | Other Assets and Other Liabilities Other assets Other liabilities 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. See Note 9 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. |
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. |
Policyholder Account Balances and Future Contract Benefits | Policyholder Account Balances 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. 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 limited payment life-contingent annuity contracts and non-participating traditional life insurance 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. As of December 31, 2023, 2022 and 2021, participating policies comprised less than 1% of the face amount of business in force, and dividend expenses were $41 million, $49 million and $48 million for the years ended December 31, 2023, 2022 and 2021, respectively. 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 15 |
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. Fee income related to 12b-1 fees and net investment advisory fees, reported primarily within our Annuities segment, was $715 million, $743 million and $848 million for the years ended December 31, 2023, 2022 and 2021, respectively. |
Insurance Premiums | Insurance Premiums Insurance premiums consist primarily of group insurance products, payout annuities with life contingencies and traditional life insurance. 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) |
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 attributable to broker-dealer services and advisory fee income, reported primarily within our Annuities segment, were $461 million, $468 million and $497 million for the years ended December 31, 2023, 2022 and 2021, respectively. 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, and were $210 million, $203 million and $180 million for the years ended December 31, 2023, 2022 and 2021, respectively. |
Interest Credited | Interest Credited |
Benefits | Benefits |
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 limited payment life-contingent annuity products and traditional life insurance, 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 limited payment life-contingent annuity products and traditional life insurance 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 |
Stock-Based Compensation | Stock-Based Compensation |
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. 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. We use the individual security approach for releasing income tax effects from AOCI. |
New Accounting Standards | The following table provides a description of our adoption of new ASUs issued by the FASB and the impact of the adoption on 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 utilized certain practical expedients under this guidance for contract modifications and to maintain hedge accounting for certain derivatives from the effective date through December 31, 2023. This ASU has not had a material impact to our consolidated financial condition and results of operations to date, and we do not expect future material impacts through the close of the ASU effective date on December 31, 2024. ASU 2018-12, Targeted Improvements to the Accounting for Long-Duration Contracts and related amendments See Note 3 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 On January 1, 2023, we adopted 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. |
Nature of Operations, Basis o_3
Nature of Operations, Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Segment Reporting Information, by Segment | 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 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 Other segment information (in millions) was as follows: For the Years Ended December 31, 2023 2022 2021 Net Investment Income Annuities $ 1,744 $ 1,387 $ 1,314 Life Insurance 2,515 2,464 3,054 Group Protection 336 333 364 Retirement Plan Services 999 966 982 Other Operations 118 124 125 Total net investment income $ 5,712 $ 5,274 $ 5,839 |
New Accounting Standards (Table
New Accounting Standards (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
New Accounting Standards | The following table provides a description of our adoption of new ASUs issued by the FASB and the impact of the adoption on 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 utilized certain practical expedients under this guidance for contract modifications and to maintain hedge accounting for certain derivatives from the effective date through December 31, 2023. This ASU has not had a material impact to our consolidated financial condition and results of operations to date, and we do not expect future material impacts through the close of the ASU effective date on December 31, 2024. ASU 2018-12, Targeted Improvements to the Accounting for Long-Duration Contracts and related amendments See Note 3 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 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 Stockholder’s Equity Retained Earnings AOCI 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: Retained Earnings AOCI Total Stockholder’s 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: Balance Impact from Removal of Shadow Balances Balance 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: Balance Impact from Removal of Shadow Balances Balance 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: Balance Pre-Adoption December 31, 2020 (1) Impact from Removal of Shadow Balances Single-A Discount Cumulative Balance 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: Balance Pre-Adoption December 31, 2020 (1) Single-A Cumulative Balance 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 Pre-Adoption December 31, 2020 (1) Cumulative Cumulative Balance 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 Pre-Adoption December 31, 2020 (1) Cumulative Balance 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 Sheet: As of December 31, 2022 As Previously Reported (1) Adoption As 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 (2) 24,450 (2,646) 21,804 Market risk benefit assets – 2,807 2,807 Other assets (2) 8,831 (1,154) 7,677 Total assets (2) 338,185 (2,603) 335,582 Future contract benefits (2) 41,203 (2,901) 38,302 Market risk benefit liabilities – 2,078 2,078 Deferred front-end loads (2) 5,765 (650) 5,115 Other liabilities (2) 7,719 (1,468) 6,251 Total liabilities (2) 329,919 (2,941) 326,978 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 reported 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”). (2) Certain as previously reported amounts have been reclassified to conform to the current presentation. 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 Year Ended December 31, 2022 For the Year Ended December 31, 2021 As Previously Reported (1) Adoption As Adjusted As Previously Reported (1) Adoption of New Accounting Standard As Adjusted Fee income $ 5,783 $ (417) $ 5,366 $ 6,630 $ (864) $ 5,766 Realized gain (loss) 214 204 418 711 148 859 Total revenues 17,770 (213) 17,557 19,228 (716) 18,512 Benefits 10,801 (2,598) 8,203 8,039 (12) 8,027 Interest credited 2,849 11 2,860 2,911 1 2,912 Market risk benefit (gain) loss – 296 296 – (1,554) (1,554) Policyholder liability remeasurement (gain) – 2,445 2,445 – (119) (119) Commissions and other expenses 4,799 128 4,927 5,548 (537) 5,011 Total expenses 19,387 282 19,669 16,699 (2,221) 14,478 Income (loss) before taxes (1,617) (495) (2,112) 2,529 1,505 4,034 Federal income tax expense (benefit) (332) (105) (437) 420 317 737 Net income (loss) (1,285) (390) (1,675) 2,109 1,188 3,297 Unrealized investment gain (loss) (13,613) (4,026) (17,639) (2,480) (753) (3,233) Market risk benefit non-performance risk gain (loss) – (211) (211) – (923) (923) Policyholder liability discount rate remeasurement gain (loss) – 1,891 1,891 – 560 560 Total other comprehensive income (loss), net of tax (13,617) (2,346) (15,963) (2,477) (1,116) (3,593) Comprehensive income (loss) (14,902) (2,736) (17,638) (368) 72 (296) (1) The amounts as previously reported were reported 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: As of December 31, 2022 As of December 31, 2021 As Previously Reported (1) Adoption As As Previously Reported (1) Adoption As Retained earnings balance as of beginning-of-year $ 4,366 $ (632) $ 3,734 $ 4,167 $ – $ 4,167 Cumulative effect from adoption of new accounting standards – – – – (1,820) (1,820) Net income (loss) (1,285) (390) (1,675) 2,109 1,188 3,297 Retained earnings balance as of end-of-year 2,436 (1,022) 1,414 4,366 (632) 3,734 Accumulated other comprehensive income (loss) balance as of beginning-of-year 6,544 3,706 10,250 9,021 – 9,021 Cumulative effect from adoption of new accounting standards – – – – 4,822 4,822 Other comprehensive income (loss), net of tax (13,617) (2,346) (15,963) (2,477) (1,116) (3,593) Accumulated other comprehensive income (loss) balance as of end-of-year (7,073) 1,360 (5,713) 6,544 3,706 10,250 Total stockholder’s equity as of end-of-year $ 8,266 $ 338 $ 8,604 $ 22,860 $ 3,074 $ 25,934 (1) The amounts as previously reported were reported 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 Cash Flows: For the Year Ended December 31, 2022 As Previously Reported (1) Adoption As Net income (loss) $ (1,285) $ (390) $ (1,675) Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Realized (gain) loss (214) (204) (418) Market risk benefit (gain) loss – 296 296 Change in: Deferred acquisition costs, value of business acquired, deferred sales inducements and deferred front-end loads 45 450 495 Insurance liabilities and reinsurance-related balances (2) 727 (75) 652 Accrued expenses (98) (3) (101) Federal income tax accruals (271) (105) (376) Other (2) 375 31 406 For the Year Ended December 31, 2021 As Previously Reported (1) Adoption As Net income (loss) $ 2,109 $ 1,188 $ 3,297 Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Realized (gain) loss (711) (148) (859) Market risk benefit (gain) loss – (1,554) (1,554) Change in: Deferred acquisition costs, value of business acquired, deferred sales inducements and deferred front-end loads 289 207 496 Insurance liabilities and reinsurance-related balances (2) (862) (31) (893) Accrued expenses 370 7 377 Federal income tax accruals 391 317 708 Other (2) (365) 14 (351) (1) The amounts as previously reported were reported in our 2022 Form 10-K. (2) Certain as previously reported amounts have been reclassified to conform to the current presentation. |
Adoption of ASU 2018-12 (Tables
Adoption of ASU 2018-12 (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Accounting Standards Update and Change in Accounting Principle | The following table provides a description of our adoption of new 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 utilized certain practical expedients under this guidance for contract modifications and to maintain hedge accounting for certain derivatives from the effective date through December 31, 2023. This ASU has not had a material impact to our consolidated financial condition and results of operations to date, and we do not expect future material impacts through the close of the ASU effective date on December 31, 2024. ASU 2018-12, Targeted Improvements to the Accounting for Long-Duration Contracts and related amendments See Note 3 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 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 Stockholder’s Equity Retained Earnings AOCI 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: Retained Earnings AOCI Total Stockholder’s 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: Balance Impact from Removal of Shadow Balances Balance 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: Balance Impact from Removal of Shadow Balances Balance 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: Balance Pre-Adoption December 31, 2020 (1) Impact from Removal of Shadow Balances Single-A Discount Cumulative Balance 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: Balance Pre-Adoption December 31, 2020 (1) Single-A Cumulative Balance 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 Pre-Adoption December 31, 2020 (1) Cumulative Cumulative Balance 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 Pre-Adoption December 31, 2020 (1) Cumulative Balance 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 Sheet: As of December 31, 2022 As Previously Reported (1) Adoption As 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 (2) 24,450 (2,646) 21,804 Market risk benefit assets – 2,807 2,807 Other assets (2) 8,831 (1,154) 7,677 Total assets (2) 338,185 (2,603) 335,582 Future contract benefits (2) 41,203 (2,901) 38,302 Market risk benefit liabilities – 2,078 2,078 Deferred front-end loads (2) 5,765 (650) 5,115 Other liabilities (2) 7,719 (1,468) 6,251 Total liabilities (2) 329,919 (2,941) 326,978 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 reported 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”). (2) Certain as previously reported amounts have been reclassified to conform to the current presentation. 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 Year Ended December 31, 2022 For the Year Ended December 31, 2021 As Previously Reported (1) Adoption As Adjusted As Previously Reported (1) Adoption of New Accounting Standard As Adjusted Fee income $ 5,783 $ (417) $ 5,366 $ 6,630 $ (864) $ 5,766 Realized gain (loss) 214 204 418 711 148 859 Total revenues 17,770 (213) 17,557 19,228 (716) 18,512 Benefits 10,801 (2,598) 8,203 8,039 (12) 8,027 Interest credited 2,849 11 2,860 2,911 1 2,912 Market risk benefit (gain) loss – 296 296 – (1,554) (1,554) Policyholder liability remeasurement (gain) – 2,445 2,445 – (119) (119) Commissions and other expenses 4,799 128 4,927 5,548 (537) 5,011 Total expenses 19,387 282 19,669 16,699 (2,221) 14,478 Income (loss) before taxes (1,617) (495) (2,112) 2,529 1,505 4,034 Federal income tax expense (benefit) (332) (105) (437) 420 317 737 Net income (loss) (1,285) (390) (1,675) 2,109 1,188 3,297 Unrealized investment gain (loss) (13,613) (4,026) (17,639) (2,480) (753) (3,233) Market risk benefit non-performance risk gain (loss) – (211) (211) – (923) (923) Policyholder liability discount rate remeasurement gain (loss) – 1,891 1,891 – 560 560 Total other comprehensive income (loss), net of tax (13,617) (2,346) (15,963) (2,477) (1,116) (3,593) Comprehensive income (loss) (14,902) (2,736) (17,638) (368) 72 (296) (1) The amounts as previously reported were reported 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: As of December 31, 2022 As of December 31, 2021 As Previously Reported (1) Adoption As As Previously Reported (1) Adoption As Retained earnings balance as of beginning-of-year $ 4,366 $ (632) $ 3,734 $ 4,167 $ – $ 4,167 Cumulative effect from adoption of new accounting standards – – – – (1,820) (1,820) Net income (loss) (1,285) (390) (1,675) 2,109 1,188 3,297 Retained earnings balance as of end-of-year 2,436 (1,022) 1,414 4,366 (632) 3,734 Accumulated other comprehensive income (loss) balance as of beginning-of-year 6,544 3,706 10,250 9,021 – 9,021 Cumulative effect from adoption of new accounting standards – – – – 4,822 4,822 Other comprehensive income (loss), net of tax (13,617) (2,346) (15,963) (2,477) (1,116) (3,593) Accumulated other comprehensive income (loss) balance as of end-of-year (7,073) 1,360 (5,713) 6,544 3,706 10,250 Total stockholder’s equity as of end-of-year $ 8,266 $ 338 $ 8,604 $ 22,860 $ 3,074 $ 25,934 (1) The amounts as previously reported were reported 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 Cash Flows: For the Year Ended December 31, 2022 As Previously Reported (1) Adoption As Net income (loss) $ (1,285) $ (390) $ (1,675) Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Realized (gain) loss (214) (204) (418) Market risk benefit (gain) loss – 296 296 Change in: Deferred acquisition costs, value of business acquired, deferred sales inducements and deferred front-end loads 45 450 495 Insurance liabilities and reinsurance-related balances (2) 727 (75) 652 Accrued expenses (98) (3) (101) Federal income tax accruals (271) (105) (376) Other (2) 375 31 406 For the Year Ended December 31, 2021 As Previously Reported (1) Adoption As Net income (loss) $ 2,109 $ 1,188 $ 3,297 Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Realized (gain) loss (711) (148) (859) Market risk benefit (gain) loss – (1,554) (1,554) Change in: Deferred acquisition costs, value of business acquired, deferred sales inducements and deferred front-end loads 289 207 496 Insurance liabilities and reinsurance-related balances (2) (862) (31) (893) Accrued expenses 370 7 377 Federal income tax accruals 391 317 708 Other (2) (365) 14 (351) (1) The amounts as previously reported were reported in our 2022 Form 10-K. (2) Certain as previously reported amounts have been reclassified to conform to the current presentation. |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Investments [Abstract] | |
Schedule of Available-for-Sale Securities Reconciliation | 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 December 31, 2023 Amortized Cost Gross Unrealized Allowance for Credit Losses Fair Value Gains Losses Fixed maturity AFS securities: Corporate bonds $ 68,811 $ 820 $ 5,757 $ 8 $ 63,866 U.S. government bonds 414 7 28 – 393 State and municipal bonds 2,675 97 230 – 2,542 Foreign government bonds 309 15 46 – 278 RMBS 1,719 27 138 6 1,602 CMBS 1,520 5 181 – 1,344 ABS 12,556 62 571 4 12,043 Hybrid and redeemable preferred securities 227 21 15 1 232 Total fixed maturity AFS securities $ 88,231 $ 1,054 $ 6,966 $ 19 $ 82,300 As of December 31, 2022 Amortized Cost Gross Unrealized Allowance for Credit Losses Fair Value Gains Losses 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 |
Investments Classified by Contractual Maturity Date | The amortized cost and fair value of fixed maturity AFS securities by contractual maturities (in millions) as of December 31, 2023, were as follows: Amortized Fair Value Due in one year or less $ 4,389 $ 4,354 Due after one year through five years 17,444 16,858 Due after five years through ten years 15,405 14,403 Due after ten years 35,198 31,696 Subtotal 72,436 67,311 Structured securities (RMBS, CMBS, ABS) 15,795 14,989 Total fixed maturity AFS securities $ 88,231 $ 82,300 |
Fair Value and Gross Unrealized Losses in a Continuous Unrealized Loss Position | 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 December 31, 2023 Less Than or Equal Greater Than Twelve Months Total Fair Value Gross Unrealized Fair Value Gross Unrealized Fair Value Gross Unrealized Losses (1) Fixed maturity AFS securities: Corporate bonds $ 13,439 $ 1,744 $ 33,285 $ 4,013 $ 46,724 $ 5,757 U.S. government bonds 65 6 194 22 259 28 State and municipal bonds 371 72 814 158 1,185 230 Foreign government bonds 108 31 57 15 165 46 RMBS 355 20 840 118 1,195 138 CMBS 583 56 586 125 1,169 181 ABS 1,898 68 7,212 503 9,110 571 Hybrid and redeemable preferred securities 32 2 94 13 126 15 Total fixed maturity AFS securities $ 16,851 $ 1,999 $ 43,082 $ 4,967 $ 59,933 $ 6,966 Total number of fixed maturity AFS securities in an unrealized loss position 7,167 As of December 31, 2022 Less Than or Equal Greater Than Twelve Months Total Fair Value Gross Unrealized Fair Value Gross Unrealized Fair Value Gross Unrealized 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 December 31, 2023 and 2022, we recognized $7 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 December 31, 2023 Fair Value Gross Number of Securities (1) Less than six months $ 2,480 $ 916 529 Six months or greater, but less than nine months 321 90 79 Nine months or greater, but less than twelve months 321 106 87 Twelve months or greater 3,485 1,336 704 Total $ 6,607 $ 2,448 1,399 As of December 31, 2022 Fair Value Gross Number of 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) |
Schedule of Available-for-Sale Securities Whose Value is Below Amortized Cost | 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 December 31, 2023 Less Than or Equal Greater Than Twelve Months Total Fair Value Gross Unrealized Fair Value Gross Unrealized Fair Value Gross Unrealized Losses (1) Fixed maturity AFS securities: Corporate bonds $ 13,439 $ 1,744 $ 33,285 $ 4,013 $ 46,724 $ 5,757 U.S. government bonds 65 6 194 22 259 28 State and municipal bonds 371 72 814 158 1,185 230 Foreign government bonds 108 31 57 15 165 46 RMBS 355 20 840 118 1,195 138 CMBS 583 56 586 125 1,169 181 ABS 1,898 68 7,212 503 9,110 571 Hybrid and redeemable preferred securities 32 2 94 13 126 15 Total fixed maturity AFS securities $ 16,851 $ 1,999 $ 43,082 $ 4,967 $ 59,933 $ 6,966 Total number of fixed maturity AFS securities in an unrealized loss position 7,167 As of December 31, 2022 Less Than or Equal Greater Than Twelve Months Total Fair Value Gross Unrealized Fair Value Gross Unrealized Fair Value Gross Unrealized 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 December 31, 2023 and 2022, we recognized $7 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 December 31, 2023 Fair Value Gross Number of Securities (1) Less than six months $ 2,480 $ 916 529 Six months or greater, but less than nine months 321 90 79 Nine months or greater, but less than twelve months 321 106 87 Twelve months or greater 3,485 1,336 704 Total $ 6,607 $ 2,448 1,399 As of December 31, 2022 Fair Value Gross Number of 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) |
Debt Securities, Available-for-Sale | Changes in the allowance for credit losses on fixed maturity AFS securities (in millions), aggregated by investment category, were as follows: For the Year Ended December 31, 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 24 1 – 25 Additions (reductions) for securities for which credit losses were previously recognized (2) (2) – (4) Reductions for securities disposed (2) – – (2) Reductions for securities charged-off (21) – – (21) Balance as of end-of-year (2) $ 8 $ 6 $ 5 $ 19 For the Year Ended December 31, 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 4 3 – 7 Additions (reductions) for securities for which credit losses were previously recognized 2 3 4 9 Reductions for securities disposed (2) – – (2) Reductions for securities charged-off (12) – – (12) Balance as of end-of-year (2) $ 9 $ 7 $ 5 $ 21 For the Year Ended December 31, 2021 Corporate Bonds RMBS Other Total Balance as of beginning-of-year $ 12 $ 1 $ – $ 13 Additions from purchases of PCD debt securities (1) – – – – Additions for securities for which credit losses were not previously recognized 8 – 1 9 Additions (reductions) for securities for which credit losses were previously recognized 5 – – 5 Reductions for securities disposed (2) – – (2) Reductions for securities charged-off (6) – – (6) Balance as of end-of-year (2) $ 17 $ 1 $ 1 $ 19 (1) Represents purchased credit-deteriorated (“PCD”) fixed maturity AFS securities. (2) As of December 31, 2023, 2022 and 2021, accrued investment income on fixed maturity AFS securities totaled $814 million, $1.1 billion and $944 million, respectively, and was excluded from the estimate of credit losses. |
Fair Value of Trading Securities | Trading securities at fair value (in millions) consisted of the following: As of December 31, 2023 2022 Fixed maturity securities: Corporate bonds $ 1,615 $ 2,196 State and municipal bonds 21 21 Foreign government bonds 46 49 RMBS 62 99 CMBS 104 137 ABS 455 919 Hybrid and redeemable preferred securities 18 25 Total trading securities $ 2,321 $ 3,446 |
Composition of Current and Past Due Mortgage Loans on Real Estate | The following provides the current and past due composition of our mortgage loans on real estate (in millions): As of December 31, 2023 As of December 31, 2022 Commercial Residential Total Commercial Residential Total Current $ 17,165 $ 1,665 $ 18,830 $ 16,913 $ 1,315 $ 18,228 30 to 59 days past due 61 28 89 19 23 42 60 to 89 days past due – 9 9 – 6 6 90 or more days past due – 60 60 – 33 33 Allowance for credit losses (86) (28) (114) (83) (15) (98) Unamortized premium (discount) (7) 43 36 (9) 36 27 Mark-to-market gains (losses) (1) (36) (1) (37) (27) – (27) Total carrying value $ 17,097 $ 1,776 $ 18,873 $ 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 15 |
Schedule of Average Carrying Value of Impaired Mortgage Loans on Real Estate | Additional information related to impaired mortgage loans on real estate (in millions) was as follows: For the Years Ended December 31, 2023 2022 2021 Average aggregate carrying value for impaired mortgage loans on real estate $ 30 $ 16 $ 32 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 | The amortized cost of mortgage loans on real estate on nonaccrual status (in millions) was as follows: As of December 31, 2023 As of December 31, 2022 Nonaccrual Nonaccrual Nonaccrual Nonaccrual Commercial mortgage loans on real estate $ – $ – $ – $ – Residential mortgage loans on real estate – 62 – 34 Total $ – $ 62 $ – $ 34 |
Financing Receivable Credit Quality Indicators | 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 December 31, 2023 Less than Debt-Service 65% to 75% Debt-Service Greater than 75% Debt-Service Total Origination Year 2023 $ 1,366 1.90 $ 54 1.38 $ – – $ 1,420 2022 1,709 2.07 140 1.54 – – 1,849 2021 2,317 3.34 61 1.55 – – 2,378 2020 1,205 3.23 11 1.38 – – 1,216 2019 2,404 2.39 80 1.56 10 2.33 2,494 2018 and prior 7,770 2.39 78 1.60 14 0.87 7,862 Total $ 16,771 $ 424 $ 24 $ 17,219 As of December 31, 2022 Less than Debt-Service 65% to 75% Debt-Service Greater than 75% Debt-Service 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 As of December 31, 2023 Performing Nonperforming Total Origination Year 2023 $ 515 $ 2 $ 517 2022 533 22 555 2021 465 18 483 2020 78 3 81 2019 99 13 112 2018 and prior 53 4 57 Total $ 1,743 $ 62 $ 1,805 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 |
Changes in Allowance for Credit Losses on Mortgage Loans on Real Estate | Changes in the allowance for credit losses on mortgage loans on real estate (in millions) were as follows: For the Year Ended December 31, 2023 Commercial Residential Total Balance as of beginning-of-year $ 83 $ 15 $ 98 Additions (reductions) from provision for credit loss expense (1) 3 13 16 Additions from purchases of PCD mortgage loans on real estate – – – Balance as of end-of-year (2) $ 86 $ 28 $ 114 For the Year Ended December 31, 2022 Commercial Residential Total Balance as of beginning-of-year $ 78 $ 17 $ 95 Additions (reductions) from provision for credit loss expense (1) 5 (2) 3 Additions from purchases of PCD mortgage loans on real estate – – – Balance as of end-of-year (2) $ 83 $ 15 $ 98 For the Year Ended December 31, 2021 Commercial Residential Total Balance as of beginning-of-year $ 186 $ 17 $ 203 Additions (reductions) from provision for credit loss expense (1) (108) – (108) Additions from purchases of PCD mortgage loans on real estate – – – Balance as of end-of-year (2) $ 78 $ 17 $ 95 (1) We recognized $(1) million of credit loss benefit (expense) related to unfunded commitments for mortgage loans on real estate for the year ended December 31, 2023. We did not recognize any credit loss benefit (expense) related to unfunded commitments for mortgage loans on real estate for the year ended December 31, 2022. We recognized $3 million of credit loss benefit (expense) related to unfunded commitments for mortgage loans on real estate for the year ended December 31, 2021. (2) Accrued investment income on mortgage loans on real estate totaled $67 million, $51 million and $48 million as of December 31, 2023, 2022 and 2021, respectively, and was excluded from the estimate of credit losses. |
Net Investment Income | The major categories of net investment income (in millions) on the Consolidated Statements of Comprehensive Income (Loss) were as follows: For the Years Ended December 31, 2023 2022 2021 Fixed maturity AFS securities $ 4,961 $ 4,408 $ 4,242 Trading securities 158 179 165 Equity securities 13 11 3 Mortgage loans on real estate 752 687 677 Policy loans 102 100 115 Cash and invested cash 118 12 – Commercial mortgage loan prepayment and bond make-whole premiums 10 100 195 Alternative investments 244 96 677 Consent fees 3 8 10 Other investments (38) 75 60 Investment income 6,323 5,676 6,144 Investment expense (611) (402) (305) Net investment income $ 5,712 $ 5,274 $ 5,839 |
Credit Loss Expense Incurred | 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 Years Ended December 31, 2023 2022 2021 Intent to Sell Impairments (1) Fixed maturity AFS securities: Corporate bonds $ (3,805) $ – $ – State and municipal bonds (214) – – RMBS (74) – – CMBS (60) – – ABS (57) – – Hybrid and redeemable preferred securities (3) – – Total intent to sell impairments $ (4,213) $ – $ – Credit Loss Benefit (Expense) Fixed maturity AFS securities: Corporate bonds $ (23) $ (4) $ (10) RMBS 1 (6) – ABS 1 (4) – Hybrid and redeemable preferred securities – – (1) Total credit loss benefit (expense) $ (21) $ (14) $ (11) (1) Represents 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. Pursuant to the applicable accounting guidance, the Company impaired the securities in a loss position down to fair market value upon entry into the agreements in the second quarter of 2023 and recognized additional impairment on certain of these securities during the third quarter of 2023 due to higher interest rates. Interest rates declined during the fourth quarter of 2023, which resulted in recognition of a $295 million pre-tax net gain upon close of the transaction, included in gross gains and gross losses on fixed maturity AFS securities in Note 21. 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 December 31, 2023 As of December 31, 2022 Carrying Fair Value Carrying Fair Value Collateral payable for derivative investments (1) $ 5,127 $ 5,127 $ 3,210 $ 3,210 Securities pledged under securities lending agreements (2) 205 197 298 287 Investments pledged for FHLBI (3) 2,650 3,603 3,130 3,925 Total payables for collateral on investments $ 7,982 $ 8,927 $ 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 or fixed maturity AFS securities. 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 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 | Increase (decrease) in payables for collateral on investments (in millions) consisted of the following: For the Years Ended December 31, 2023 2022 2021 Collateral payable for derivative investments $ 1,917 $ (2,355) $ 2,595 Securities pledged under securities lending agreements (93) 57 126 Investments pledged for FHLBI (480) – – Total increase (decrease) in payables for collateral on investments $ 1,344 $ (2,298) $ 2,721 |
Schedule of Securities Pledged by Contractual Maturity | The remaining contractual maturities of securities lending transactions accounted for as secured borrowings (in millions) were as follows: As of December 31, 2023 Overnight Up to 30 Days 30-90 Days Greater than Total Securities Lending Corporate bonds $ 202 $ – $ – $ – $ 202 Equity securities 3 – – – 3 Total gross secured borrowings $ 205 $ – $ – $ – $ 205 As of December 31, 2022 Overnight Up to 30 Days 30-90 Days Greater than Total Securities Lending Corporate bonds $ 288 $ – $ – $ – $ 288 Foreign government bonds 2 – – – 2 Equity securities 8 – – – 8 Total gross secured borrowings $ 298 $ – $ – $ – $ 298 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | Outstanding derivative instruments with off-balance-sheet risks (in millions) were as follows: As of December 31, 2023 As of December 31, 2022 Notional Amounts Fair Value Notional Amounts Fair Value Asset Liability Asset Liability Qualifying Hedges Cash flow hedges: Interest rate contracts (1) $ 485 $ 11 $ 47 $ 1,377 $ 4 $ 232 Foreign currency contracts (1) 4,662 423 78 4,383 643 18 Total cash flow hedges 5,147 434 125 5,760 647 250 Fair value hedges: Interest rate contracts (1) 450 1 39 524 2 44 Foreign currency contracts (1) 25 – 1 – – – Total fair value hedges 475 1 40 524 2 44 Non-Qualifying Hedges Interest rate contracts (1) 90,829 636 979 105,977 709 935 Foreign currency contracts (1) 306 11 6 395 27 2 Equity market contracts (1) 225,251 10,244 4,227 142,653 5,135 2,035 Commodity contracts (1) – – – 13 14 3 Credit contracts (1) 91 – – – – – LPR ceded derivative (2) – 206 – – 212 – Embedded derivatives: Reinsurance-related (3) – 493 – – 681 – RILA, fixed indexed annuity and IUL contracts (4) – 940 9,077 – 525 4,783 Total derivative instruments $ 322,099 $ 12,965 $ 14,454 $ 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 as described in Note 1 (2) Reported in other assets on the Consolidated Balance Sheets. (3) Reported in funds withheld reinsurance liabilities on the Consolidated Balance Sheets. (4) Reported in policyholder account balances and deposit assets on the Consolidated Balance Sheets. |
Schedule of Derivative Instruments | The maturity of the notional amounts of derivative instruments (in millions) was as follows: Remaining Life as of December 31, 2023 Less Than 1 Year 1 – 5 6 - 10 11 - 30 Over 30 Total Interest rate contracts (1) $ 22,166 $ 25,350 $ 22,349 $ 21,899 $ – $ 91,764 Foreign currency contracts (2) 276 956 1,687 2,032 42 4,993 Equity market contracts 174,430 37,200 6,950 9 6,662 225,251 Credit contracts – 91 – – – 91 Total derivative instruments with notional amounts $ 196,872 $ 63,597 $ 30,986 $ 23,940 $ 6,704 $ 322,099 (1) As of December 31, 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 December 31, 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 | The following amounts (in millions) were recorded on the Consolidated Balance Sheets related to cumulative basis adjustments for fair value hedges: Amortized Cost of the Cumulative Fair Value As of As of As of As of Line Item in the Consolidated Balance Sheets in which the Hedged Item is Included Fixed maturity AFS securities, at fair value $ 534 $ 587 $ 39 $ 44 |
Change in Our Unrealized Gain on Derivative Instruments in AOCI | The change in our unrealized gain (loss) on derivative instruments within AOCI (in millions) was as follows: For the Years Ended December 31, 2023 2022 2021 Unrealized Gain (Loss) on Derivative Instruments Balance as of beginning-of-year $ 301 $ 258 $ 42 Cumulative effect from adoption of new accounting standard – – 25 Other comprehensive income (loss): Unrealized holding gains (losses) arising during the period: Cash flow hedges: Interest rate contracts 212 (336) 11 Foreign currency contracts (50) 182 130 Change in foreign currency exchange rate adjustment (169) 312 152 Income tax benefit (expense) 2 (34) (63) Less: Reclassification adjustment for gains (losses) included in net income (loss): Cash flow hedges: Interest rate contracts (1) (1) 2 3 Foreign currency contracts (1) 54 62 48 Foreign currency contracts (2) 7 39 (2) Income tax benefit (expense) (13) (22) (10) Balance as of end-of-year $ 249 $ 301 $ 258 (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 | 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 Realized Gain (Loss) Net Investment Income Benefits Total Line Items in which the Effects of Fair Value or Cash Flow Hedges are Recorded $ (4,934) $ 5,712 $ 5,044 Qualifying Hedges Gain or (loss) on fair value hedging relationships: Interest rate contracts: Hedged items – (5) – Derivatives designated as hedging instruments – 5 – 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 7 54 – Non-Qualifying Hedges Interest rate contracts (161) – – Foreign currency contracts (2) – – Equity market contracts 1,387 – – Commodity contracts 8 – – Credit contracts (4) – – LPR ceded derivative – – 6 Embedded derivatives: Reinsurance-related (188) – – RILA, fixed indexed annuity and IUL contracts (3,187) – – Gain (Loss) Recognized in Income For the Year Ended December 31, 2022 Realized Gain (Loss) Net Investment Income Benefits Total Line Items in which the Effects of Fair Value or Cash Flow Hedges are Recorded $ 418 $ 5,274 $ 8,203 Qualifying Hedges Gain or (loss) on fair value hedging relationships: Interest rate contracts: Hedged items – (167) – Derivatives designated as hedging instruments – 167 Gain or (loss) on cash flow hedging relationships: Interest rate contracts: Amount of gain or (loss) reclassified from AOCI into income – 2 – Foreign currency contracts: Amount of gain or (loss) reclassified from AOCI into income 39 62 – Non-Qualifying Hedges Interest rate contracts (2,113) – – Foreign currency contracts 2 – – Equity market contracts (2,075) – – Commodity contracts 11 – – Credit contracts (4) – – LPR ceded derivative – – 106 Embedded derivatives: Reinsurance-related 1,259 – – RILA, fixed indexed annuity and IUL contracts 1,760 – – Gain (Loss) Recognized in Income For the Year Ended December 31, 2021 Realized Gain (Loss) Net Investment Income Benefits Total Line Items in which the Effects of Fair Value or Cash Flow Hedges are Recorded $ 859 $ 5,839 $ 8,027 Qualifying Hedges Gain or (loss) on fair value hedging relationships: Interest rate contracts: Hedged items – (60) – Derivatives designated as hedging instruments – 60 Gain or (loss) on cash flow hedging relationships: Interest rate contracts: Amount of gain or (loss) reclassified from AOCI into income – 3 – Foreign currency contracts: Amount of gain or (loss) reclassified from AOCI into income (2) 48 – Non-Qualifying Hedges Interest rate contracts (957) – – Foreign currency contracts (1) – – Equity market contracts 3,355 – – Credit contracts (1) – – Embedded derivatives: Reinsurance-related 280 – – RILA, fixed indexed annuity and IUL contracts (2,622) – – |
Schedule of Collateral Amounts With Rights to Reclaim or Obligation to Return Cash | The amounts recognized (in millions) by S&P credit rating of counterparty, for which we had the right to reclaim cash collateral or were obligated to return cash collateral, were as follows: As of December 31, 2023 As of December 31, 2022 S&P Collateral Collateral Collateral Collateral AA- $ 2,330 $ (63) $ 383 $ (6) A+ 2,422 (125) 1,718 (151) A 82 – 1,099 – A- 273 – – – $ 5,107 $ (188) $ 3,200 $ (157) |
Schedule of Offsetting Assets | Information related to the effects of offsetting on the Consolidated Balance Sheets (in millions) was as follows: As of December 31, 2023 Derivative Embedded Total Financial Assets Gross amount of recognized assets $ 10,714 $ 1,433 $ 12,147 Gross amounts offset (4,409) – (4,409) Net amount of assets 6,305 1,433 7,738 Gross amounts not offset: Cash collateral (5,107) – (5,107) Non-cash collateral (1) (1,198) – (1,198) Net amount – 1,433 1,433 Financial Liabilities Gross amount of recognized liabilities 968 9,077 10,045 Gross amounts offset (612) – (612) Net amount of liabilities 356 9,077 9,433 Gross amounts not offset: Cash collateral (188) – (188) Non-cash collateral (2) (168) – (168) Net amount $ – $ 9,077 $ 9,077 (1) Excludes excess non-cash collateral received of $1.3 billion, 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 $81 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 Derivative Embedded 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. |
Schedule of Offsetting Liabilities | Information related to the effects of offsetting on the Consolidated Balance Sheets (in millions) was as follows: As of December 31, 2023 Derivative Embedded Total Financial Assets Gross amount of recognized assets $ 10,714 $ 1,433 $ 12,147 Gross amounts offset (4,409) – (4,409) Net amount of assets 6,305 1,433 7,738 Gross amounts not offset: Cash collateral (5,107) – (5,107) Non-cash collateral (1) (1,198) – (1,198) Net amount – 1,433 1,433 Financial Liabilities Gross amount of recognized liabilities 968 9,077 10,045 Gross amounts offset (612) – (612) Net amount of liabilities 356 9,077 9,433 Gross amounts not offset: Cash collateral (188) – (188) Non-cash collateral (2) (168) – (168) Net amount $ – $ 9,077 $ 9,077 (1) Excludes excess non-cash collateral received of $1.3 billion, 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 $81 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 Derivative Embedded 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) | 12 Months Ended |
Dec. 31, 2023 | |
Deferred Policy Acquisition Costs and Present Value of Future Insurance Profits, Net [Abstract] | |
Reconciliation of DAC, VOBA and DSI | The following table reconciles DAC, VOBA and DSI (in millions) to the Consolidated Balance Sheets: As of December 31, 2023 2022 DAC, VOBA and DSI Variable Annuities $ 4,025 $ 4,047 Fixed Annuities 456 479 Traditional Life 1,374 1,336 UL and Other 6,139 6,002 Group Protection 154 141 Retirement Plan Services 270 258 Total DAC, VOBA and DSI $ 12,418 $ 12,263 |
Reconciliation of DFEL | The following table reconciles DFEL (in millions) to the Consolidated Balance Sheets: As of December 31, 2023 2022 DFEL Variable Annuities $ 300 $ 310 UL and Other (1) 5,579 4,766 Other Operations (2) 44 39 Total DFEL $ 5,923 $ 5,115 (1) We reported $2.3 billion of ceded DFEL in reinsurance recoverables on the Consolidated Balance Sheet as of December 31, 2023. (2) Represents DFEL reported in Other Operations attributable to the indemnity reinsurance agreement with Protective that is excluded from the following tables. We reported $44 million |
DAC | The following tables summarize the changes in DAC (in millions): For the Year Ended December 31, 2023 Variable Fixed Traditional UL and Group Protection Retirement Balance as of beginning-of-year $ 3,880 $ 439 $ 1,286 $ 5,518 $ 141 $ 241 Deferrals 361 50 188 482 113 21 Amortization (373) (68) (142) (291) (100) (18) Balance as of end-of-year $ 3,868 $ 421 $ 1,332 $ 5,709 $ 154 $ 244 For the Year Ended December 31, 2022 Variable Fixed Traditional UL and Group Protection Retirement 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 | The following tables summarize the changes in VOBA (in millions): For the Year Ended December 31, 2023 Fixed Traditional UL and Balance as of beginning-of-year $ 17 $ 50 $ 454 Business acquired (sold) through reinsurance – – (11) Deferrals – – 2 Amortization (2) (8) (43) Balance as of end-of-year $ 15 $ 42 $ 402 For the Year Ended December 31, 2022 Fixed Traditional UL and Balance as of beginning-of-year $ 20 $ 59 $ 499 Deferrals – – 2 Amortization (3) (9) (47) Balance as of end-of-year $ 17 $ 50 $ 454 |
Estimated Future Amortization Of VOBA | Estimated future amortization of VOBA (in millions), as of December 31, 2023, was as follows: 2024 $ 39 2025 37 2026 34 2027 29 2028 25 |
DSI | The following tables summarize the changes in DSI (in millions): For the Year Ended December 31, 2023 Variable Annuities Fixed UL and Retirement Balance as of beginning-of-year $ 167 $ 23 $ 30 $ 17 Deferrals 5 – – 10 Amortization (15) (3) (2) (1) Balance as of end-of-year $ 157 $ 20 $ 28 $ 26 For the Year Ended December 31, 2022 Variable Annuities Fixed UL and Retirement 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 | The following tables summarize the changes in DFEL (in millions): For the Year Ended December 31, 2023 For the Year Ended December 31, 2022 Variable Annuities UL and Variable Annuities UL and Balance as of beginning-of-year $ 310 $ 4,766 $ 318 $ 3,934 Deferrals 19 1,074 22 1,061 Amortization (29) (261) (30) (229) Balance as of end-of-year 300 5,579 310 4,766 Less: ceded DFEL – 2,252 – 31 Balance as of end-of-year, net of reinsurance $ 300 $ 3,327 $ 310 $ 4,735 |
Reinsurance (Tables)
Reinsurance (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance Amounts Recorded on Consolidated Statements of Income (Loss) | The following summarizes reinsurance amounts (in millions) recorded on the Consolidated Statements of Comprehensive Income (Loss), excluding amounts attributable to the indemnity reinsurance agreements with Protective and Swiss Re: For the Years Ended December 31, 2023 2022 2021 Direct insurance premiums and fee income $ 13,661 $ 13,479 $ 13,277 Reinsurance assumed 91 102 97 Reinsurance ceded (1) (5,168) (2,374) (2,249) Total insurance premiums and fee income $ 8,584 $ 11,207 $ 11,125 Direct insurance benefits $ 10,178 $ 10,266 $ 10,491 Reinsurance ceded (1) (5,150) (2,063) (2,464) Total benefits $ 5,028 $ 8,203 $ 8,027 Direct market risk benefit (gain) loss $ (2,309) $ (3,517) $ (4,011) Reinsurance ceded 1,174 3,814 2,457 Total market risk benefit (gain) loss $ (1,135) $ 296 $ (1,554) Direct policyholder liability remeasurement (gain) loss $ (234) $ 3,284 $ (164) Reinsurance ceded 67 (839) 45 Total policyholder liability remeasurement (gain) loss $ (167) $ 2,445 $ (119) (1) Includes impacts related to the Fortitude Re reinsurance transaction effective in the fourth quarter of 2023 |
Schedule of Assets in Support of Reserves | We held assets in support of reserves associated with the Athene transaction in a modified coinsurance investment portfolio, which consisted of the following (in millions): As of December 31, 2023 2022 Fixed maturity AFS securities $ 177 $ 474 Trading securities 1,556 2,644 Equity securities 58 60 Mortgage loans on real estate 288 487 Derivative investments 43 39 Other investments 41 42 Cash and invested cash 582 26 Accrued investment income 23 35 Other assets 6 2 Total $ 2,774 $ 3,809 |
Goodwill and Specifically Ide_2
Goodwill and Specifically Identifiable Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The changes in the carrying amount of goodwill (in millions) by reportable segment were as follows: For the Year Ended December 31, 2023 Gross Accumulated Net Impairment Net Annuities $ 1,040 $ (600) $ 440 $ – $ 440 Group Protection 684 – 684 – 684 Retirement Plan Services 20 – 20 – 20 Total goodwill $ 1,744 $ (600) $ 1,144 $ – $ 1,144 For the Year Ended December 31, 2022 Gross Accumulated Net Impairment Net 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 |
Schedule of Intangible Assets by Reportable Segment | The gross carrying amounts and accumulated amortization (in millions) for each major specifically identifiable intangible asset class by reportable segment were as follows: As of December 31, 2023 As of December 31, 2022 Gross Accumulated Gross Accumulated Life Insurance: Sales force $ 100 $ 71 $ 100 $ 67 Group Protection: VOCRA 576 145 576 115 VODA 31 12 31 10 Retirement Plan Services: Mutual fund contract rights (1) 5 – 5 – Total $ 712 $ 228 $ 712 $ 192 (1 ) |
Future Estimated Amortization of Specifically Identifiable Intangible Assets | Future estimated amortization of specifically identifiable intangible assets (in millions) as of December 31, 2023, was as follows: 2024 $ 37 2025 37 2026 37 2027 37 2028 37 Thereafter 294 |
MRBs (Tables)
MRBs (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
ASU 2018-12 Transition [Abstract] | |
Reconciles of MRBs Assets and Liabilities | The following table reconciles MRBs (in millions) to MRB assets and MRB liabilities on the Consolidated Balance Sheets: As of December 31, 2023 As of December 31, 2022 Assets Liabilities Net (Assets) Liabilities Assets Liabilities Net (Assets) Liabilities Variable Annuities $ 3,763 $ 1,583 $ (2,180) $ 2,666 $ 2,004 $ (662) Fixed Annuities 96 128 32 117 72 (45) Retirement Plan Services 35 5 (30) 24 2 (22) Total MRBs $ 3,894 $ 1,716 $ (2,178) $ 2,807 $ 2,078 $ (729) |
Summary of Balances of Changes in Net MRB (Assets) Liabilities | The following table summarizes the balances of and changes in net MRB (assets) liabilities (in millions): As of or For the Year Ended As of or For the Year Ended Variable Annuities Fixed Annuities Retirement Plan Services Variable Annuities Fixed Annuities Retirement Plan 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 8 – – 12 – (3) Attributed fees collected 1,497 32 6 1,571 32 6 Benefit payments (64) – – (63) – – Effect of changes in interest rates (110) (24) 5 (9,346) (232) (55) Effect of changes in equity markets (3,167) (12) (13) 4,293 12 18 Effect of changes in equity index volatility (593) 9 (3) (225) 14 (1) In-force updates and other changes in MRBs (1) 136 5 1 661 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-year, before the effect of changes in non-performance risk (881) 90 (26) 1,511 (5) (20) Effect of cumulative changes in non-performance risk (1,299) (58) (4) (2,173) (40) (2) Balance as of end-of-year (2,180) 32 (30) (662) (45) (22) Less: ceded MRB assets (liabilities) (870) – (5) 294 – – Balance as of end-of-year, net of reinsurance $ (1,310) $ 32 $ (25) $ (956) $ (45) $ (22) Weighted-average age of policyholders (years) 72 68 63 71 68 63 Net amount at risk (3) $ 3,031 $ 203 $ 4 $ 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) |
Separate Accounts (Tables)
Separate Accounts (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Separate Accounts Disclosure [Abstract] | |
Schedule of Fair Value of Separate Account Assets | 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 December 31, 2023 2022 Mutual funds and collective investment trusts $ 157,578 $ 142,892 Exchange-traded funds 350 258 Fixed maturity AFS securities 167 169 Cash and invested cash 25 98 Other investments 137 119 Total separate account assets $ 158,257 $ 143,536 |
Schedule of Reconciliation of Separate Account Liabilities | The following table reconciles separate account liabilities (in millions) to the Consolidated Balance Sheets: As of December 31, 2023 2022 Variable Annuities $ 113,356 $ 105,573 UL and Other 25,150 20,920 Retirement Plan Services 19,699 16,996 Other Operations (1) 52 47 Total separate account liabilities $ 158,257 $ 143,536 (1) Represents separate account liabilities reported in Other Operations primarily attributable to the indemnity reinsurance agreements with Protective ($46 million and $42 million as of December 31, 2023 and December 31, 2022, respectively) that are excluded from the following tables. |
Summary of Balances and changes in Separate Account Liabilities | The following table summarizes the balances of and changes in separate account liabilities (in millions): As of or For the Year Ended As of or For the Year Ended Variable Annuities UL and Other Retirement Plan Services Variable Annuities UL and Other Retirement Plan Services Balance as of beginning-of-year $ 105,573 $ 20,920 $ 16,996 $ 136,665 $ 24,785 $ 21,068 Gross deposits 2,982 1,630 2,222 3,371 1,900 2,378 Withdrawals (10,177) (313) (2,527) (9,238) (454) (2,378) Policyholder assessments (2,510) (964) (163) (2,603) (938) (164) Change in market performance 16,870 3,973 3,221 (23,194) (4,371) (3,710) Net transfers from (to) general account 618 (96) (50) 572 (2) (198) Balance as of end-of-year $ 113,356 $ 25,150 $ 19,699 $ 105,573 $ 20,920 $ 16,996 Cash surrender value $ 111,928 $ 22,760 $ 19,684 $ 103,987 $ 18,666 $ 16,982 |
Policyholder Account Balances (
Policyholder Account Balances (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Policyholder Account Balance [Abstract] | |
Schedule of Policyholder Account Balances | The following table reconciles policyholder account balances (in millions) to the Consolidated Balance Sheets: As of December 31, 2023 2022 Variable Annuities $ 29,141 $ 22,184 Fixed Annuities 25,330 23,338 UL and Other 36,784 37,258 Retirement Plan Services 23,784 25,138 Other (1) 5,277 6,054 Total policyholder account balances $ 120,316 $ 113,972 (1) Represents policyholder account balances reported primarily in Other Operations attributable to the indemnity reinsurance agreements with Protective ($4.9 billion and $5.7 billion as of December 31, 2023 and December 31, 2022, respectively) that are excluded from the following tables. |
Summary of Balances and Changes in Policyholder Account Balances | The following table summarizes the balances and changes in policyholder account balances (in millions): As of or For the Year Ended December 31, 2023 Variable Annuities Fixed Annuities UL and Other Retirement Balance as of beginning-of-year $ 22,184 $ 23,338 $ 37,258 $ 25,138 Gross deposits 4,709 5,130 3,739 2,776 Withdrawals (742) (3,926) (1,430) (4,494) Policyholder assessments (1) (56) (4,464) (14) Net transfers from (to) separate account (427) – 97 (295) Interest credited 548 642 1,463 673 Change in fair value of embedded derivative instruments 2,870 202 121 – Balance as of end-of-year $ 29,141 $ 25,330 $ 36,784 $ 23,784 Weighted-average crediting rate 2.1 % 2.7 % 4.0 % 2.7 % Net amount at risk (1)(2) $ 3,031 $ 203 $ 300,994 $ 4 Cash surrender value 27,975 24,324 32,585 23,765 As of or For the Year Ended December 31, 2022 Variable Annuities Fixed Annuities UL and Other Retirement 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 | 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 December 31, 2023 At 1-50 Basis 51-100 101-150 Greater Total Range of Guaranteed Minimum Crediting Rate Variable Annuities Up to 1.00% $ – $ – $ – $ – $ – $ – 1.01% - 2.00% 5 – – – 7 12 2.01% - 3.00% 576 – – – – 576 3.01% - 4.00% 1,370 – – – – 1,370 4.01% and above 10 – – – – 10 Other (1) – – – – – 27,173 Total $ 1,961 $ – $ – $ – $ 7 $ 29,141 Fixed Annuities Up to 1.00% $ 696 $ 511 $ 546 $ 505 $ 2,429 $ 4,687 1.01% - 2.00% 426 97 235 527 3,081 4,366 2.01% - 3.00% 1,805 35 6 – 18 1,864 3.01% - 4.00% 903 – – – – 903 4.01% and above 180 – – – – 180 Other (1) – – – – – 13,330 Total $ 4,010 $ 643 $ 787 $ 1,032 $ 5,528 $ 25,330 UL and Other Up to 1.00% $ 275 $ – $ 195 $ 121 $ 352 $ 943 1.01% - 2.00% 557 – – – 3,125 3,682 2.01% - 3.00% 6,925 11 148 – – 7,084 3.01% - 4.00% 15,202 – 1 – – 15,203 4.01% and above 3,730 – – – – 3,730 Other (1) – – – – – 6,142 Total $ 26,689 $ 11 $ 344 $ 121 $ 3,477 $ 36,784 Retirement Plan Services Up to 1.00% $ 452 $ 569 $ 744 $ 4,904 $ 2,979 $ 9,648 1.01% - 2.00% 550 2,065 1,575 832 – 5,022 2.01% - 3.00% 2,492 – – – – 2,492 3.01% - 4.00% 5,012 – – – – 5,012 4.01% and above 1,610 – – – – 1,610 Total $ 10,116 $ 2,634 $ 2,319 $ 5,736 $ 2,979 $ 23,784 As of December 31, 2022 At 1-50 Basis 51-100 101-150 Greater Total Range of Guaranteed Minimum Crediting Rate 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) | 12 Months Ended |
Dec. 31, 2023 | |
Liability for Future Policy Benefits and Unpaid Claims and Claims Adjustment Expense [Abstract] | |
Summary of Reconciliation of Future Contract Benefits | The following table reconciles future contract benefits (in millions) to the Consolidated Balance Sheets: As of December 31, 2023 2022 Payout Annuities (1) $ 2,084 $ 2,003 Traditional Life (1) 3,553 3,190 Group Protection (2) 5,689 5,462 UL and Other (3) 15,752 14,777 Other Operations (4) 9,753 9,651 Other (5) 3,343 3,219 Total future contract benefits $ 40,174 $ 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 ($5.6 billion and $5.4 billion as of December 31, 2023, and December 31, 2022, respectively) and Swiss Re ($2.1 billion and $2.2 billion as of December 31, 2023, and December 31, 2022, respectively) that are excluded from the following tables. (5) Represents other miscellaneous reserves that are not representative of long-duration contracts and are excluded from the following tables. |
Liability for Future Policy Benefit, Activity | 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 Year Ended December 31, 2023 As of or For the Year Ended December 31, 2022 Payout Annuities Traditional Life Payout Annuities Traditional 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 – (275) – (21) Adjusted balance as of beginning-of-year – 6,200 – 5,364 Issuances – 580 – 1,655 Interest accrual – 236 – 209 Net premiums collected – (784) – (742) Flooring impact of LFPB – 4 – (6) Ending balance at original discount rate – 6,236 – 6,480 Effect of cumulative changes in discount rate assumptions – (152) – (584) Balance as of end-of-year $ – $ 6,084 $ – $ 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 – (21) – (321) Effect of actual variances from expected experience 1 (305) 3 (5) Adjusted balance as of beginning-of-year 2,267 9,553 2,248 8,567 Issuances 109 580 122 1,655 Interest accrual 86 364 84 326 Benefit payments (191) (658) (188) (669) Ending balance at original discount rate (1) 2,271 9,839 2,266 9,879 Effect of cumulative changes in discount rate assumptions (187) (202) (263) (793) Balance as of end-of-year $ 2,084 $ 9,637 $ 2,003 $ 9,086 Net balance as of end-of-year $ 2,084 $ 3,553 $ 2,003 $ 3,190 Less: reinsurance recoverables (2) 1,627 255 10 270 Net balance as of end-of-year, net of reinsurance $ 457 $ 3,298 $ 1,993 $ 2,920 Weighted-average duration of future policyholder benefit liability (years) 9 10 9 11 (1) Includes DPL within Payout Annuities of $56 million, $38 million and $22 million as of December 31, 2023, December 31, 2022 and December 31, 2021, respectively. (2) Increase in Payout Annuities reinsurance recoverables driven by the reinsurance agreement with Fortitude Re effective October 1, 2023 for certain blocks of in-force life-contingent payout fixed annuities. See Note 8 for more information on the transaction. 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 Years Ended 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 (261) (117) Adjusted beginning-of-year balance 5,771 5,572 New incidence 1,702 1,777 Interest 159 141 Benefit payments (1,453) (1,431) Ending balance at original discount rate 6,179 6,059 Effect of cumulative changes in discount rate assumptions (490) (597) Balance as of end-of-year 5,689 5,462 Less: reinsurance recoverables 123 127 Balance as of end-of-year, net of reinsurance $ 5,566 $ 5,335 Weighted-average duration of liability for future claims (years) 5 4 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 Years Ended 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 165 3,108 Effect of actual variances from expected experience (77) 195 Adjusted beginning-of-year balance 15,770 14,703 Issuances – 7 Interest accrual 765 626 Net assessments collected 658 974 Benefit payments (588) (628) Balance as of end-of-year, excluding shadow balance in AOCI 16,605 15,682 Effect of cumulative changes in shadow balance in AOCI (853) (905) Balance as of end-of-year 15,752 14,777 Less: reinsurance recoverables (1) 9,505 1,975 Balance as of end-of-year, net of reinsurance $ 6,247 $ 12,802 Weighted-average duration of additional liabilities for other insurance benefits (years) 17 17 (1) Increase in reinsurance recoverables driven by the reinsurance agreement with Fortitude Re effective October 1, 2023 for certain blocks of in-force ULSG. See Note 8 for more information on the transaction. |
Summary of Discounted and Undiscounted Expected Future Gross premiums and Expected Future Benefit Payments | The following table summarizes the discounted and undiscounted expected future gross premiums and expected future benefit payments (in millions): As of December 31, 2023 As of December 31, 2022 Undiscounted Discounted Undiscounted Discounted Payout Annuities Expected future gross premiums $ – $ – $ – $ – Expected future benefit payments 3,481 2,084 3,471 2,003 Traditional Life Expected future gross premiums 13,406 9,341 13,166 8,887 Expected future benefit payments 13,404 9,637 13,026 9,086 The following table summarizes the discounted and undiscounted expected future benefit payments (in millions): As of December 31, 2023 As of December 31, 2022 Undiscounted Discounted Undiscounted Discounted Group Protection Expected future benefit payments $ 7,250 $ 6,179 $ 7,063 $ 6,059 |
Summary of Gross Premiums and Interest Accretion | 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 Years Ended December 31, 2023 2022 2021 Payout Annuities Gross premiums $ 116 $ 133 $ 95 Interest accretion 86 84 84 Traditional Life Gross premiums 1,183 1,136 1,022 Interest accretion 128 117 113 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 Years Ended December 31, 2023 2022 2021 Group Protection Gross premiums $ 3,549 $ 3,393 $ 3,145 Interest accretion 159 141 145 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 Years Ended December 31, 2023 2022 2021 UL and Other Gross assessments $ 1,221 $ 2,818 $ 3,150 Interest accretion 765 626 498 |
Summary of Weighted-Average Interest Rates | The following table summarizes the weighted-average interest rates: For the Years Ended 2023 2022 Payout Annuities Interest accretion rate 3.9 % 3.9 % Current discount rate 4.9 % 5.3 % Traditional Life Interest accretion rate 5.0 % 5.0 % Current discount rate 4.7 % 5.1 % The following table summarizes the weighted-average interest rates: For the Years Ended 2023 2022 Group Protection Interest accretion rate 3.0 % 2.8 % Current discount rate 4.7 % 5.1 % The following table summarizes the weighted-average interest rates: For the Years Ended 2023 2022 UL and Other Interest accretion rate 5.3 % 5.0 % |
Short-Term and Long-Term Debt (
Short-Term and Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Details underlying short-term and long-term debt (in millions) were as follows: As of December 31, 2023 2022 Short-Term Debt Current maturities of long-term debt $ 50 $ — Short-term debt (1) 790 562 Total short-term debt $ 840 $ 562 Long-Term Debt, Excluding Current Portion 9.76% surplus note, due 2024 $ — $ 50 6.03% surplus note, due 2028 750 750 6.56% surplus note, due 2028 500 500 SOFR + 111 bps surplus note, due 2028 71 71 SOFR + 226 bps surplus note, due 2028 544 568 SOFR + 200 bps surplus note, due 2035 30 30 SOFR + 155 bps surplus note, due 2037 25 25 4.20% surplus note, due 2037 50 50 SOFR + 100 bps surplus note, due 2037 154 154 4.225% surplus note, due 2037 28 28 4.00% surplus note, due 2037 30 30 4.50% surplus note, due 2038 13 13 Total long-term debt $ 2,195 $ 2,269 (1) The short-term debt represents short-term notes payable to LNC. |
Future Principal Payments | Future principal payments due on long-term debt (in millions) as of December 31, 2023, were as follows: 2024 $ 50 2025 – 2026 – 2027 – 2028 1,865 Thereafter 330 Total $ 2,245 |
Schedule of Line of Credit Facilities | Credit facilities, which allow for borrowing or issuances of letters of credit (“LOCs”), (in millions) were as follows: As of December 31, 2023 Expiration Date Maximum Available LOCs Issued Credit Facilities Five-year revolving credit facility December 21, 2028 $ 2,000 $ 116 LOC facility (1) August 26, 2031 976 917 LOC facility (1) October 1, 2031 859 859 Total $ 3,835 $ 1,892 (1) Our wholly-owned subsidiaries entered into irrevocable LOC facility agreements with third-party lenders supporting inter-company reinsurance agreements. |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value, by Balance Sheet Grouping | The carrying values and estimated fair values of our financial instruments (in millions) were as follows: As of December 31, 2023 As of December 31, 2022 Carrying Value Fair Value Carrying Value Fair Value Assets Fixed maturity AFS securities $ 82,300 $ 82,300 $ 99,465 $ 99,465 Trading securities 2,321 2,321 3,446 3,446 Equity securities 306 306 427 427 Mortgage loans on real estate 18,873 17,330 18,211 16,477 Derivative investments 6,305 6,305 3,519 3,519 Other investments 4,757 4,757 3,577 3,577 Cash and invested cash 3,193 3,193 2,499 2,499 MRB assets 3,894 3,894 2,807 2,807 Other assets: Ceded MRBs 274 274 540 540 Indexed annuity ceded embedded derivatives 940 940 525 525 LPR ceded derivative 206 206 212 212 Separate account assets 158,257 158,257 143,536 143,536 Liabilities Policyholder account balances: Account balances of certain investment contracts (44,615) (34,020) (43,550) (34,251) RILA, fixed annuity and IUL contracts (9,077) (9,077) (4,783) (4,783) Funds withheld reinsurance liabilities – reinsurance-related embedded derivatives 493 493 681 681 MRB liabilities (1,716) (1,716) (2,078) (2,078) Short-term debt (840) (841) (562) (562) Long-term debt (2,195) (2,125) (2,269) (2,166) Other liabilities: Ceded MRBs (1,149) (1,149) (246) (246) Derivative liabilities (356) (356) (254) (254) Remaining guaranteed interest and similar contracts (411) (411) (574) (574) |
Fair Value Option, Disclosures | 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 December 31, 2023 2022 Fair value $ 288 $ 487 Aggregate contractual principal 326 514 |
Fair Value of Assets and Liabilities on a Recurring Basis | The following summarizes our financial instruments carried at fair value (in millions) on a recurring basis by the fair value hierarchy levels: As of December 31, 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 $ – $ 57,397 $ 6,469 $ 63,866 U.S. government bonds 373 20 – 393 State and municipal bonds – 2,537 5 2,542 Foreign government bonds – 278 – 278 RMBS – 1,589 13 1,602 CMBS – 1,336 8 1,344 ABS – 10,559 1,484 12,043 Hybrid and redeemable preferred securities 46 138 48 232 Trading securities – 2,037 284 2,321 Equity securities 1 263 42 306 Mortgage loans on real estate – – 288 288 Derivative investments (1) – 10,705 622 11,327 Other investments – short-term investments – 233 – 233 Cash and invested cash – 3,193 – 3,193 MRB assets – – 3,894 3,894 Other assets: Ceded MRBs – – 274 274 Indexed annuity ceded embedded derivatives – – 940 940 LPR ceded derivative – – 206 206 Separate account assets 402 157,855 – 158,257 Total assets $ 822 $ 248,140 $ 14,577 $ 263,539 Liabilities Policyholder account balances – RILA, fixed annuity and IUL contracts $ – $ – $ (9,077) $ (9,077) Funds withheld reinsurance liabilities – reinsurance-related embedded derivatives – 493 – 493 MRB liabilities – – (1,716) (1,716) Other liabilities: Ceded MRBs – – (1,149) (1,149) Derivative liabilities (1) – (4,792) (586) (5,378) Total liabilities $ – $ (4,299) $ (12,528) $ (16,827) 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 Indexed annuity ceded embedded derivatives – – 525 525 LPR ceded derivative – – 212 212 Separate account assets 412 143,124 – 143,536 Total assets $ 784 $ 247,426 $ 12,298 $ 260,508 Liabilities Policyholder account balances – indexed annuity and IUL contracts embedded derivatives $ – $ – $ (4,783) $ (4,783) Funds withheld reinsurance liabilities – reinsurance-related embedded derivatives – 681 – 681 MRB liabilities – – (2,078) (2,078) Other liabilities: Ceded MRBs – – (246) (246) Derivative liabilities (1) – (2,666) (603) (3,269) Total liabilities $ – $ (1,985) $ (7,710) $ (9,695) (1) Derivative investment assets and liabilities are presented within the fair value hierarchy on a gross basis by derivative type and not |
Fair Value Measured on a Recurring Basis Reconciliation | 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 Year Ended December 31, 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 $ (17) $ 28 $ 1,284 $ (12) $ 6,469 State and municipal bonds 35 (4) 4 (30) – 5 RMBS 1 – – 5 7 13 CMBS – – – (4) 12 8 ABS 1,117 – 9 733 (375) 1,484 Hybrid and redeemable preferred securities 49 – (2) (2) 3 48 Trading securities 581 17 – (313) (1) 284 Equity securities 153 (19) – (98) 6 42 Mortgage loans on real estate 487 (7) 5 (197) – 288 Derivative investments 2 (13) – 16 31 36 Other assets: Ceded MRBs (3) 540 (266) – – – 274 Indexed annuity ceded embedded derivatives (4) 525 6 – 409 – 940 LPR ceded derivative (5) 212 (6) – – – 206 Policyholder account balances – RILA, fixed annuity and IUL contracts (4) (4,783) (3,193) – (1,101) – (9,077) Other liabilities – ceded MRBs (3) (246) (903) – – – (1,149) Total, net $ 3,859 $ (4,405) $ 44 $ 702 $ (329) $ (129) For the Year Ended December 31, 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 $ 1 $ (1,542) $ 592 $ (2,666) $ 5,186 State and municipal bonds – – (1) – 36 35 Foreign government bonds 41 – (6) (30) (5) – RMBS 3 – 1 21 (24) 1 CMBS – – – 17 (17) – ABS 870 – (113) 676 (316) 1,117 Hybrid and redeemable preferred securities 90 (4) (21) (12) (4) 49 Trading securities 828 (80) – (152) (15) 581 Equity securities 91 52 – 25 (15) 153 Mortgage loans on real estate 739 (20) (5) (227) – 487 Derivative investments 21 2 (6) – (15) 2 Other assets: Ceded MRBs (3) 4,114 (3,574) – – – 540 Indexed annuity ceded embedded derivatives (4) 528 (215) – 212 – 525 LPR ceded derivative (5) 318 (106) – – – 212 Policyholder account balances – indexed annuity and IUL contracts embedded derivatives (4) (6,131) 1,975 – (627) – (4,783) Other liabilities – ceded MRBs (3) (17) (229) – – – (246) Total, net $ 10,296 $ (2,198) $ (1,693) $ 495 $ (3,041) $ 3,859 For the Year Ended December 31, 2021 Gains Issuances, Transfers Items (Losses) Sales, Into or Included in Maturities, Out Beginning in OCI Settlements, of Ending Fair Net and Calls, Level 3, Fair Value Income Other (1) Net Net Value Investments: (2) Fixed maturity AFS securities: Corporate bonds $ 7,761 $ 3 $ (182) $ 1,189 $ 30 $ 8,801 U.S. government bonds 5 – – (5) – – Foreign government bonds 74 – (11) 80 (102) 41 RMBS 2 – – 2 (1) 3 CMBS 1 (1) – 8 (8) – ABS 570 1 (9) 602 (294) 870 Hybrid and redeemable preferred securities 103 – 25 (38) – 90 Trading securities 643 (3) – 210 (22) 828 Equity securities 57 38 – (4) – 91 Mortgage loans on real estate 832 11 5 (109) – 739 Derivative investments 1,542 1,255 (3) (139) (2,634) 21 Other assets: Ceded MRBs (3) 6,539 (2,425) – – – 4,114 Indexed annuity ceded embedded derivatives (4) 550 87 – (109) – 528 LPR ceded derivative (5) – – – – 318 318 Policyholder account balances – indexed annuity and IUL contracts embedded derivatives (4) (3,594) (2,709) – 172 – (6,131) Other liabilities – ceded MRBs (3) – (17) – – – (17) Total, net $ 15,085 $ (3,760) $ (175) $ 1,859 $ (2,713) $ 10,296 (1) The changes in fair value of the interest rate swaps are offset by an adjustment to derivative investments Note (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 | The following provides the components of the items included in issuances, sales, maturities, settlements and calls, net, (in millions) as reported above: For the Year Ended December 31, 2023 Issuances Sales Maturities Settlements Calls Total Investments: Fixed maturity AFS securities: Corporate bonds $ 2,035 $ (334) $ (34) $ (372) $ (11) $ 1,284 State and municipal bonds – (30) – – – (30) RMBS 5 – – – – 5 CMBS – – – (4) – (4) ABS 971 (2) – (230) (6) 733 Hybrid and redeemable preferred securities – – – – (2) (2) Trading securities – (231) – (82) – (313) Equity securities 1 (99) – – – (98) Mortgage loans on real estate 5 – – (202) – (197) Derivative investments 19 – (3) – – 16 Other assets – indexed annuity ceded embedded derivatives 404 – – 5 – 409 Policyholder account balances – RILA, fixed annuity and IUL contracts (1,113) – – 12 – (1,101) Total, net $ 2,327 $ (696) $ (37) $ (873) $ (19) $ 702 For the Year Ended December 31, 2022 Issuances Sales Maturities Settlements Calls Total Investments: Fixed maturity AFS securities: Corporate bonds $ 1,335 $ (398) $ (81) $ (231) $ (33) $ 592 Foreign government bonds – – (30) – – (30) RMBS 21 – – – – 21 CMBS 17 – – – – 17 ABS 918 – – (235) (7) 676 Hybrid and redeemable preferred securities – – – – (12) (12) Trading securities 287 (229) – (210) – (152) Equity securities 34 (9) – – – 25 Mortgage loans on real estate 15 – – (242) – (227) Other assets – indexed annuity ceded embedded derivatives 124 – – 88 – 212 Policyholder account balances – indexed annuity and IUL contracts embedded derivatives (710) – – 83 – (627) Total, net $ 2,041 $ (636) $ (111) $ (747) $ (52) $ 495 For the Year Ended December 31, 2021 Issuances Sales Maturities Settlements Calls Total Investments: Fixed maturity AFS securities: Corporate bonds $ 1,861 $ (110) $ (109) $ (423) $ (30) $ 1,189 U.S. government bonds – – (5) – – (5) Foreign government bonds 80 – – – – 80 RMBS 2 – – – – 2 CMBS 8 – – – – 8 ABS 835 – – (233) – 602 Hybrid and redeemable preferred securities 12 (20) – – (30) (38) Trading securities 383 (25) – (148) – 210 Equity securities 6 (10) – – – (4) Mortgage loans on real estate 96 (101) (26) (78) – (109) Derivative investments 174 (124) (189) – – (139) Other assets – indexed annuity ceded embedded derivatives 55 – – (164) – (109) Policyholder account balances – indexed annuity and IUL contracts embedded derivatives (400) – – 572 – 172 Total, net 3,112 (390) (329) (474) (60) 1,859 |
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings | 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 Years Ended December 31, 2023 2022 2021 Trading securities (1) $ 8 $ (81) $ 4 Equity securities (1) (16) 54 40 Mortgage loans on real estate (1) (8) (20) 12 Derivative investments (1) 1 2 1,051 MRBs (2) 1,071 (359) 1,530 Other assets – LPR ceded derivative (3) (6) (106) – Embedded derivatives - indexed annuity and IUL contracts (1) (20) (95) 44 Total, net $ 1,030 $ (605) $ 2,681 (1) Included in realized gain (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 | The following summarizes changes in unrealized gains (losses) For the Years Ended December 31, 2023 2022 2021 Fixed maturity AFS securities: Corporate bonds $ 7 $ (1,553) $ (183) State and municipal bonds 3 (1) – Foreign government bonds – (7) (10) ABS 3 (115) (9) Hybrid and redeemable preferred securities (1) (21) 26 Mortgage loans on real estate 4 (5) 4 Total, net $ 16 $ (1,702) $ (172) |
Components of the Transfers In and Out of Level 3 | The following provides the components of the transfers into and out of Level 3 (in millions) as reported above: For the Year Ended December 31, 2023 Transfers Transfers Into Out of Level 3 Level 3 Total Investments: Fixed maturity AFS securities: Corporate bonds $ 194 $ (206) $ (12) RMBS 12 (5) 7 CMBS 12 – 12 ABS 2 (377) (375) Hybrid and redeemable preferred securities 16 (13) 3 Trading securities 6 (7) (1) Equity securities 6 – 6 Derivative investments 31 – 31 Total, net $ 279 $ (608) $ (329) For the Year Ended December 31, 2022 Transfers Transfers Into Out of Level 3 Level 3 Total Investments: Fixed maturity AFS securities: Corporate bonds $ 296 $ (2,962) $ (2,666) State and municipal bonds 36 – 36 Foreign government bonds – (5) (5) RMBS – (24) (24) CMBS – (17) (17) ABS 16 (332) (316) Hybrid and redeemable preferred securities – (4) (4) Trading securities 4 (19) (15) Equity securities – (15) (15) Derivative investments – (15) (15) Total, net $ 352 $ (3,393) $ (3,041) For the Year Ended December 31, 2021 Transfers Transfers Into Out of Level 3 Level 3 Total Investments: Fixed maturity AFS securities: Corporate bonds $ 164 $ (134) $ 30 Foreign government bonds – (102) (102) RMBS – (1) (1) CMBS – (8) (8) ABS 36 (330) (294) Trading securities 12 (34) (22) Derivative investments 24 (2,658) (2,634) Other assets – LPR ceded derivative 318 – 318 Total, net $ 554 $ (3,267) $ (2,713) |
Fair Value Inputs Quantitative Information | 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, 2023: Weighted Fair Valuation Significant Assumption or Average Input Value Technique Unobservable Inputs Input Ranges Range (1) Assets Investments: Fixed maturity AFS and trading securities: Corporate bonds $ 183 Discounted cash flow Liquidity/duration adjustment (2) (0.2) % – 3.7 % 2.1 % State and municipal bonds 5 Discounted cash flow Liquidity/duration adjustment (2) 0.9 % – 2.2 % 2.1 % CMBS 8 Discounted cash flow Liquidity/duration adjustment (2) 2.3 % – 2.3 % 2.3 % ABS 12 Discounted cash flow Liquidity/duration adjustment (2) 1.8 % – 1.8 % 1.8 % Hybrid and redeemable preferred securities 7 Discounted cash flow Liquidity/duration adjustment (2) 1.4 % – 1.5 % 1.5 % Equity securities 5 Discounted cash flow Liquidity/duration adjustment (2) 4.5 % – 4.5 % 4.5 % MRB assets 3,894 Other assets – ceded MRBs 274 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) 0.51 % – 2.13 % 1.78 % Mortality (7) (9) (10) Volatility (8) 1 % – 29 % 13.92 % Other assets – indexed annuity ceded embedded derivatives 940 Discounted cash flow Lapse (3) 0 % – 9 % (10) Mortality (7) (9) (10) Other assets – LPR ceded derivative 206 Discounted cash flow Lapse (3) 0.1 % – 2.00 % (10) Non-performance risk (6) 0.51 % – 2.13 % 1.58 % Mortality (7) (9) (10) Liabilities Policyholder account balances – indexed annuity contracts embedded derivatives $ (9,013) Discounted cash flow Lapse (3) 0 % – 9 % (10) Mortality (7) (9) (10) MRB liabilities (1,716) Other liabilities – ceded MRBs (1,149) 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) 0.51 % – 2.13 % 1.78 % Mortality (7) (9) (10) Volatility (8) 1 % – 29 % 13.92 % 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 Fair Valuation Significant Assumption or Average 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 balance 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. |
Retirement and Deferred Compe_2
Retirement and Deferred Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Benefit Plans' Assets and Obligations | Information (in millions) with respect to these plans was as follows: As of or For the Years Ended December 31, 2023 2022 2023 2022 Other Postretirement Pension Plans Benefit Plans Fair value of plan assets $ 71 $ 77 $ 10 $ 9 Projected benefit obligation 77 82 6 6 Funded status $ (6) $ (5) $ 4 $ 3 Amounts Recognized on the Consolidated Balance Sheets Other assets $ – $ – $ 4 $ 3 Other liabilities (6) (5) – – Net amount recognized $ (6) $ (5) $ 4 $ 3 Weighted-Average Assumptions Benefit obligations: Weighted-average discount rate 5.44% 5.66% 5.45% 5.70% Net periodic benefit cost: Weighted-average discount rate 5.62% 3.07% 5.70% 3.73% Expected return on plan assets 6.00% 5.00% 6.50% 6.50% |
Fair Value of Benefit Plan Assets | The following summarizes our fair value measurements of our benefit plans’ assets (in millions) on a recurring basis by asset category: As of December 31, 2023 2022 Fixed maturity securities: Corporate bonds $ 23 $ 33 U.S. government bonds 22 17 CMBS 2 2 Common stock 21 22 Cash and invested cash 3 3 Other investments 10 9 Total $ 81 $ 86 |
Deferred Compensation Plans Liabilities and Investments | Information (in millions) with respect to these plans was as follows: As of December 31, 2023 2022 Total liabilities (1) $ 695 $ 623 Investments dedicated to fund liabilities (2) 233 206 (1) Reported in other liabilities on the Consolidated Balance Sheets. (2) |
Stock-Based Incentive Compens_2
Stock-Based Incentive Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Compensation Expense By Award Type | Total compensation expense (in millions) by award type for stock-based incentive compensation plans was as follows: For the Years Ended December 31, 2023 2022 2021 Stock options $ 7 $ 6 $ 8 Performance shares 12 9 17 RSUs 40 33 33 Total $ 59 $ 48 $ 58 Recognized tax benefit $ 9 $ 11 $ 12 |
Contingencies and Commitments (
Contingencies and Commitments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Lease Costs | Finance lease expense (in millions) was as follows: For the Years Ended December 31, 2023 2022 2021 Amortization of finance lease assets (1) $ 9 $ 23 $ 38 Interest on finance lease liabilities (2) 5 4 3 Total $ 14 $ 27 $ 41 (1) Amortization of finance lease assets is reported in commissions and other expenses on the Consolidated Statements of Comprehensive Income (Loss). (2) Interest on finance lease liabilities is reported in interest and debt expense on the Consolidated Statements of Comprehensive Income (Loss). The table below presents cash flow information (in millions) related to leases: For the Years Ended December 31, 2023 2022 2021 Supplemental Cash Flow Information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 41 $ 47 $ 40 Financing cash flows from finance leases 83 74 62 Supplemental Non-Cash Information ROU assets obtained in exchange for new lease obligations: Operating leases $ – $ 6 $ 8 |
Schedule of Operating Lease Maturity | Our future minimum lease payments (in millions) under non-cancellable leases as of December 31, 2023, were as follows: Operating Leases Finance Leases 2024 $ 34 $ 18 2025 26 7 2026 22 4 2027 15 – 2028 8 – Thereafter 7 – Total future minimum lease payments 112 29 Less: Amount representing interest 23 2 Present value of minimum lease payments $ 89 $ 27 |
Schedule of Financing Lease Maturity | Our future minimum lease payments (in millions) under non-cancellable leases as of December 31, 2023, were as follows: Operating Leases Finance Leases 2024 $ 34 $ 18 2025 26 7 2026 22 4 2027 15 – 2028 8 – Thereafter 7 – Total future minimum lease payments 112 29 Less: Amount representing interest 23 2 Present value of minimum lease payments $ 89 $ 27 respectively, of financing obligations reported within other liabilities on the Consolidated Balance Sheets. Future payments due on certain financing arrangements (in millions) as of December 31, 2023, were as follows: 2024 $ 152 2025 172 2026 224 2027 127 2028 10 Thereafter 6 Total future minimum lease payments 691 Less: Amount representing interest 96 Present value of minimum lease payments $ 595 |
Shares and Stockholder's Equi_2
Shares and Stockholder's Equity (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
Components and Changes in AOCI | The following summarizes the components and changes in AOCI (in millions): For the Years Ended December 31, 2023 2022 2021 Unrealized Gain (Loss) on Fixed Maturity AFS Securities and Certain Other Investments Balance as of beginning-of-year $ (8,526) $ 9,153 $ 8,993 Cumulative effect from adoption of new accounting standards – – 3,584 Unrealized holding gains (losses) arising during the year 2,122 (24,475) (4,478) Change in foreign currency exchange rate adjustment 178 (321) (143) Change in future contract benefits and policyholder account balances, net of reinsurance 638 2,292 893 Income tax benefit (expense) (650) 4,815 797 Less: Reclassification adjustment for gains (losses) included in net income (loss) (3,425) (13) 624 Income tax benefit (expense) 719 3 (131) Balance as of end-of-year $ (3,532) $ (8,526) $ 9,153 Unrealized Gain (Loss) on Derivative Instruments Balance as of beginning-of-year $ 301 $ 258 $ 42 Cumulative effect from adoption of new accounting standard – – 25 Unrealized holding gains (losses) arising during the year 162 (154) 141 Change in foreign currency exchange rate adjustment (169) 312 152 Income tax benefit (expense) 2 (34) (63) Less: Reclassification adjustment for gains (losses) included in net income (loss) 60 103 49 Income tax benefit (expense) (13) (22) (10) Balance as of end-of-year $ 249 $ 301 $ 258 Market Risk Benefit Non-Performance Risk Gain (Loss) Balance as of beginning-of-year $ 1,739 $ 1,951 $ – Cumulative effect from adoption of new accounting standard – – 2,874 Adjustment arising during the year (854) (267) (1,174) Income tax benefit (expense) 184 55 251 Balance as of end-of-year $ 1,069 $ 1,739 $ 1,951 Policyholder Liability Discount Rate Remeasurement Gain (Loss) Balance as of beginning-of-year $ 790 $ (1,101) $ – Cumulative effect from adoption of new accounting standard – – (1,661) Adjustment arising during the year (187) 2,406 711 Income tax benefit (expense) 42 (515) (151) Balance as of end-of-year $ 645 $ 790 $ (1,101) Funded Status of Employee Benefit Plans Balance as of beginning-of-year $ (17) $ (11) $ (14) Adjustment arising during the year 1 (6) 4 Income tax benefit (expense) – – (1) Balance as of end-of-year $ (16) $ (17) $ (11) |
Schedule of Reclassifications Out of AOCI | The following summarizes the reclassifications out of AOCI (in millions) and the associated line item in the Consolidated Statements of Comprehensive Income (Loss): For the Years Ended December 31, 2023 2022 2021 Unrealized Gain (Loss) on Fixed Maturity AFS Securities and Certain Other Investments Reclassification $ (4,014) $ (13) $ 624 Realized gain (loss) Associated change in future contract benefits 589 – – Benefits Reclassification before income tax benefit (expense) (3,425) (13) 624 Income (loss) before taxes Income tax benefit (expense) 719 3 (131) Federal income tax expense (benefit) Reclassification, net of income tax $ (2,706) $ (10) $ 493 Net income (loss) Unrealized Gain (Loss) on Derivative Instruments Interest rate contracts $ (1) $ 2 $ 3 Net investment income Foreign currency contracts 54 62 48 Net investment income Foreign currency contracts 7 39 (2) Realized gain (loss) Reclassifications before income tax benefit (expense) 60 103 49 Income (loss) before taxes Income tax benefit (expense) (13) (22) (10) Federal income tax expense (benefit) Reclassifications, net of income tax $ 47 $ 81 $ 39 Net income (loss) |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Reconciliation of Revenue from Segments to Consolidated | 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 Years Ended December 31, 2023 2022 2021 Revenues Operating revenues: Annuities (1) $ 2,625 $ 4,102 $ 4,258 Life Insurance 6,362 6,344 6,938 Group Protection 5,560 5,303 4,994 Retirement Plan Services 1,290 1,257 1,306 Other Operations (1) (778) 133 158 Revenue adjustments from annuity and life insurance product features 99 872 818 Credit loss-related adjustments (74) (129) 109 Investment gains (losses) (4,080) 19 654 Changes in the fair value of reinsurance-related embedded derivatives, trading securities and certain mortgage loans (22) 588 165 GLB rider fees ceded to LNBAR (923) (932) (888) Total revenues (1) $ 10,059 $ 17,557 $ 18,512 |
Reconciliation of Income (Loss) From Operations by Segment to Consolidated Net Income (Loss) | For the Years Ended December 31, 2023 2022 2021 Net Income (Loss) Income (loss) from operations: Annuities $ 840 $ 948 $ 1,089 Life Insurance (126) (1,933) 497 Group Protection 297 40 (165) Retirement Plan Services 155 198 235 Other Operations (356) (374) (244) Net annuity product features, after-tax 1,295 416 1,866 Net life insurance product features, after-tax 148 21 (1) Credit loss-related adjustments, after-tax (58) (102) 86 Investment gains (losses), after-tax (3,210) 15 516 Changes in the fair value of reinsurance-related embedded derivatives, trading securities and certain mortgage loans, after-tax (18) 465 130 GLB rider fees ceded to LNBAR, after-tax (728) (735) (701) Impairment of intangibles – (634) – Transaction and integration costs related to mergers, acquisitions and divestitures, after-tax (2) (27) – (11) Net income (loss) $ (1,788) $ (1,675) $ 3,297 (1) Includes ceded insurance premiums primarily related to the Fortitude Re reinsurance transaction effective in the fourth quarter of 2023. For more information, see Note 8. (2) Includes costs pertaining to the Fortitude Re reinsurance transaction and the planned sale of LNC’s wealth management business. For more information, see Note 1 Note 8 |
Schedule of Segment Reporting Information, by Segment | 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 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 Other segment information (in millions) was as follows: For the Years Ended December 31, 2023 2022 2021 Net Investment Income Annuities $ 1,744 $ 1,387 $ 1,314 Life Insurance 2,515 2,464 3,054 Group Protection 336 333 364 Retirement Plan Services 999 966 982 Other Operations 118 124 125 Total net investment income $ 5,712 $ 5,274 $ 5,839 |
Reconciliation of Other Significant Reconciling Items from Segments to Consolidated | For the Years Ended December 31, 2023 2022 2021 Federal Income Tax Expense (Benefit) Annuities $ 79 $ 128 $ 189 Life Insurance (62) (544) 112 Group Protection 79 11 (44) Retirement Plan Services 25 32 48 Other Operations (102) (84) (70) Net annuity product features 344 112 496 Net life insurance product features 39 5 – Credit loss-related adjustments (16) (27) 20 Investment gains (losses) (853) 4 140 Changes in the fair value of reinsurance-related embedded derivatives, trading securities and certain mortgage loans (5) 123 35 GLB rider fees ceded to LNBAR (194) (197) (186) Transaction and integration costs related to mergers, acquisitions and divestitures (7) – (3) Total federal income tax expense (benefit) (673) (437) 737 |
Reconciliation of Assets from Segment to Consolidated | As of December 31, 2023 2022 Assets Annuities $ 186,716 $ 165,643 Life Insurance 107,529 97,373 Group Protection 9,741 9,830 Retirement Plan Services 46,969 42,275 Other Operations 23,021 20,461 Total assets $ 373,976 $ 335,582 |
Realized Gain (Loss) (Tables)
Realized Gain (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Realized Gain (Loss) [Abstract] | |
Schedule of Realized Gain (Loss) | Details underlying realized gain (loss) (in millions) reported on the Consolidated Statements of Comprehensive Income (Loss) were as follows: For the Years Ended December 31, 2023 2022 2021 Fixed maturity AFS securities: (1) Gross gains $ 627 $ 37 $ 660 Gross losses (428) (50) (36) Credit loss benefit (expense) (2) (21) (14) (11) Intent to sell impairments (4,213) – – Realized gain (loss) on equity securities (3) (6) 12 41 Credit loss benefit (expense) on mortgage loans on real estate (16) (3) 111 Credit loss benefit (expense) on reinsurance-related assets (4) (35) (112) 7 Realized gain (loss) on the mark-to-market on certain instruments (5)(6) (509) 683 169 Indexed product derivative results (7) (232) 74 22 GLB rider fees ceded to LNBAR and attributed fees (112) (168) (91) Other realized gain (loss) 11 (41) (13) Total realized gain (loss) $ (4,934) $ 418 $ 859 (1) 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. Pursuant to the applicable accounting guidance, the Company impaired the securities in a loss position down to fair market value upon entry into the agreements in the second quarter of 2023 and recognized additional impairment on certain of these securities during the third quarter of 2023 due to higher interest rates. Interest rates declined during the fourth quarter of 2023, which resulted in recognition of a $295 million pre-tax net gain upon close of the transaction, included in gross gains and gross losses. See Notes 4 and 8 for additional information. (2) Includes changes in the allowance for credit losses as well as direct write-downs to amortized cost as a result of negative credit events. (3) Includes mark-to-market adjustments on equity securities still held of $8 million, $7 million and $44 million for the years ended December 31, 2023, 2022 and 2021, 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 . Also includes an $87 million pre-tax loss related to interest rate futures used to hedge the assets used as consideration in the Fortitude Re reinsurance transaction. See Note 8 for additional information. (6) Includes gains and losses from fair value changes on mortgage loans on real estate accounted for under the fair value option of $(11) million, $(24) million and $3 million for the years ended December 31, 2023, 2022 and 2021, 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. |
Commissions and Other Expenses
Commissions and Other Expenses (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Commissions and Other Expenses [Abstract] | |
Details Underlying Commissions and Other Expenses | Details underlying commissions and other expenses (in millions) were as follows: For the Years Ended December 31, 2023 2022 2021 Commissions $ 2,082 $ 2,201 $ 2,227 General and administrative expenses 2,427 2,200 2,187 DAC and VOBA deferrals, net of amortization (171) (346) (321) Broker-dealer expenses 444 419 441 Taxes, licenses and fees 333 344 358 Expenses associated with reserve financing and LOCs 58 60 57 Specifically identifiable intangible asset amortization 37 37 37 Other amortization 5 12 11 Transaction and integration costs related to mergers, acquisitions and divestitures 34 – 14 Total $ 5,249 $ 4,927 $ 5,011 |
Federal Income Taxes (Tables)
Federal Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Federal Income Tax Expense | The federal income tax expense (benefit) on continuing operations (in millions) was as follows: For the Years Ended December 31, 2023 2022 2021 Current $ (255) $ (24) $ 20 Deferred (418) (413) 717 Federal income tax expense (benefit) $ (673) $ (437) $ 737 |
Reconciliation of the Effective Tax Rate Differences | A reconciliation of the effective tax rate differences (in millions) was as follows: For the Years Ended December 31, 2023 2022 2021 Income (loss) before taxes $ (2,461) $ (2,112) $ 4,034 Federal statutory rate 21% 21% 21% Federal income tax expense (benefit) at federal statutory rate (517) (444) 847 Effect of: Tax-preferred investment income (1) (126) (90) (88) Tax credits (40) (42) (26) Excess tax expense (benefit) from stock-based compensation 3 (1) – Goodwill impairment – 133 – Other items 7 7 4 Federal income tax expense (benefit) $ (673) $ (437) $ 737 Effective tax rate 27% 21% 18% (1) |
Federal Income Tax Asset (Liability) | The federal income tax asset (liability) (in millions) was as follows: As of December 31, 2023 2022 Current $ 546 $ 353 Deferred 49 734 Total federal income tax asset (liability) $ 595 $ 1,087 |
Significant Components of Deferred Tax Assets and Liabilities | Significant components of our deferred tax assets and liabilities (in millions) were as follows: As of December 31, 2023 2022 Deferred Tax Assets Insurance liabilities and reinsurance-related balances $ 322 $ 231 Compensation and benefit plans 175 152 Intangibles 18 21 Net unrealized loss on fixed maturity AFS securities 1,246 2,161 Net unrealized loss on trading securities 33 70 Investment activity 91 296 Tax credits 103 – Net operating losses 87 278 Capital losses 93 – Deferred gain on reinsurance 400 30 Total deferred tax assets $ 2,568 $ 3,239 Deferred Tax Liabilities DAC and VOBA $ 1,906 $ 1,769 Reinsurance-related embedded derivative assets 104 143 MRB-related activity 286 228 Other 223 365 Total deferred tax liabilities $ 2,519 $ 2,505 Net deferred tax asset (liability) $ 49 $ 734 |
Schedule of Unrecognized Tax Benefits Roll Forward | A reconciliation of the gross unrecognized federal tax benefits (in millions) was as follows: For the Years Ended December 31, 2023 2022 Balance as of beginning-of-year $ 59 $ 64 Decreases for prior year tax positions (6) (6) Increases for prior year tax positions 23 1 Balance as of end-of-year $ 76 $ 59 |
Statutory Information and Res_2
Statutory Information and Restrictions (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Statutory Information and Restrictions [Abstract] | |
Statutory Financial Information | As of December 31, 2023 2022 U.S. capital and surplus $ 8,026 $ 8,507 For the Years Ended December 31, 2023 2022 2021 U.S. net gain (loss) from operations, after-tax $ (2,495) $ 1,708 $ (1,285) U.S. net income (loss) (2,924) 1,965 (569) U.S. dividends to LNC holding company 495 645 1,910 |
Effects on Statutory Surplus Compared to NAIC Statutory Surplus | The favorable (unfavorable) effects on statutory surplus compared to NAIC statutory surplus from the use of these prescribed and permitted practices (in millions) were as follows: As of December 31, 2023 2022 State Prescribed Practices Calculation of reserves using the Indiana universal life method $ (1) $ 3 Conservative valuation rate on certain annuities (1) (36) Calculation of reserves using continuous CARVM (1) (1) Conservative Reg 213 reserves on variable annuity and individual life contracts (31) (37) State Permitted Practice Derivative instruments and equity indexed reserves (170) 14 Assets in group fixed annuity contracts held at general account balances 332 436 Vermont Subsidiaries Permitted Practices Lesser of LOC and XXX additional reserve as surplus 1,776 1,838 LLC notes and variable value surplus notes 1,444 1,547 Excess of loss reinsurance agreements 563 549 |
Supplemental Disclosures of C_2
Supplemental Disclosures of Cash Flow Data (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Supplemental Cash Flow Information [Abstract] | |
Summary of Supplemental Cash Flow Data | The following summarizes our supplemental cash flow data (in millions): For the Years Ended December 31, 2023 2022 2021 Net cash paid (received) for: Interest $ 187 $ 126 $ 115 Income taxes (110) (61) 29 Non-cash transactions: Net increase (decrease) in fixed maturity AFS securities, other investments and accrued investment income in connection with reinsurance transactions (20,264) 54 (3,700) Establishment of funds withheld liability in connection with a reinsurance transaction (49) – – |
Transactions with Affiliates (T
Transactions with Affiliates (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
Schedule of Transactions with Affiliates | The following summarizes transactions with affiliates (in millions) and the associated line item on the Consolidated Balance Sheets: As of December 31, 2023 2022 Assets with affiliates: Inter-company notes $ 1,063 $ 1,216 Fixed maturity AFS securities Assumed reinsurance contracts 1 – Policy Loans Deferred acquisition costs, value of business Assumed/ceded reinsurance contracts (131) (138) acquired and deferred sales inducements Accrued inter-company interest receivable 16 13 Accrued investment income Reinsurance recoverables, net of allowance Ceded reinsurance contracts 15,563 2,187 for credit losses Ceded reinsurance contracts 642 899 Other assets Cash management agreement 857 124 Other assets Service agreement receivable 41 6 Other assets Liabilities with affiliates: Assumed reinsurance contracts 18 17 Future contract benefits Assumed reinsurance contracts 352 361 Policyholder account balances Inter-company short-term debt 840 562 Short-term debt Inter-company long-term debt 2,195 2,269 Long-term debt Ceded reinsurance contracts 5,862 2,517 Funds withheld reinsurance liabilities Ceded reinsurance contracts 897 (31) Other liabilities Accrued inter-company interest payable 18 15 Other liabilities Service agreement payable 37 41 Other liabilities Assumed/ceded reinsurance contracts 4,387 158 Other liabilities Equity with affiliates: Accumulated other comprehensive income – 774 55 Accumulated other comprehensive assumed/ceded income (loss) The following summarizes transactions with affiliates (in millions) and the associated line item on the Consolidated Statements of Comprehensive Income (Loss): For the Years Ended December 31, 2023 2022 2021 Revenues with affiliates: Premiums received on assumed (paid on ceded) reinsurance contracts $ (498) $ (421) $ (468) Insurance premiums Fees for management of general account (156) (140) (138) Net investment income Net investment income on ceded funds withheld treaties (238) (161) (113) Net investment income Net investment income on inter-company notes 65 40 29 Net investment income Realized gains (losses) on ceded reinsurance contracts: Other gains (losses) (9) 631 94 Realized gain (loss) Reinsurance-related settlements 1,717 (1,068) 1,626 Realized gain (loss) Amortization of deferred gain (loss) on reinsurance Amortization of deferred gain contracts 17 3 3 (loss) on business sold through reinsurance Other revenues (171) – – Other revenues Benefits and expenses with affiliates: Reinsurance (recoveries) benefits on ceded reinsurance (507) (247) (430) Benefits Interest credited on assumed reinsurance contracts 12 47 48 Interest credited Market risk benefit (gain) loss on ceded reinsurance contracts 1,129 3,543 2,199 Market risk benefit (gain) loss Policyholder liability remeasurement (gain) loss Policyholder liability remeasurement on ceded reinsurance contracts – (321) 64 (gain) loss Ceded reinsurance contracts (13) (26) (7) Commissions and other expenses Service agreement payments (receipts) (17) (53) (29) Commissions and other expenses Interest expense on inter-company debt 148 120 107 Interest and debt expense |
Nature of Operations, Basis o_4
Nature of Operations, Basis of Presentation and Summary of Significant Accounting Policies - Narrative (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 USD ($) payment | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Product Information [Line Items] | |||
Assets classified as held for sale | $ 120 | ||
Liabilities classified as held for sale | $ 77 | ||
Operating Lease, Right-of-Use Asset, Statement of Financial Position | Other assets | Other assets | |
Finance Lease, Right-of-Use Asset, Statement of Financial Position | Other assets | Other assets | |
Operating Lease, Liability, Statement of Financial Position | Other liabilities | Other liabilities | |
Finance Lease, Liability, Statement of Financial Position | Other liabilities | Other liabilities | |
Maximum net premium ratio at individual cohort level | 100% | ||
Participating policies as a percentage of the face amount of the insurance in force | 1% | 1% | |
Dividend expenses | $ 41 | $ 49 | $ 48 |
Other revenues | $ 649 | 621 | 657 |
Sales Force Intangibles | |||
Product Information [Line Items] | |||
Useful life of intangible assets | 25 years | ||
VOCRA | |||
Product Information [Line Items] | |||
Useful life of intangible assets | 20 years | ||
VODA | |||
Product Information [Line Items] | |||
Useful life of intangible assets | 13 years | ||
Annuities | |||
Product Information [Line Items] | |||
Fee income | $ 715 | 743 | 848 |
Other revenues | 461 | 468 | 497 |
Group Protection | |||
Product Information [Line Items] | |||
Other revenues | $ 210 | $ 203 | $ 180 |
Commercial | |||
Product Information [Line Items] | |||
Number of days past due to qualify as delinquent | 60 days | ||
Number of missed payments to qualify as delinquent | payment | 2 | ||
Number of missed payments to qualify loans as non-accrual | payment | 3 | ||
Loan-to-value ratio indicating principal is greater than collateral | 100% | ||
Commercial | Maximum | |||
Product Information [Line Items] | |||
Debt-service coverage ratio indicating property income not covering debt payments | 1 | ||
Residential | |||
Product Information [Line Items] | |||
Period in which loans no longer accrue interest | 90 days |
Nature of Operations, Basis o_5
Nature of Operations, Basis of Presentation and Summary of Significant Accounting Policies - Summary of Amortization Basis and Expected Amortization Period by Reportable Segment (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Annuities | Minimum | |
Product Information [Line Items] | |
Traditional contract acquisition cost amortization period | 30 years |
Annuities | Maximum | |
Product Information [Line Items] | |
Traditional contract acquisition cost amortization period | 40 years |
Life Insurance | |
Product Information [Line Items] | |
Traditional contract acquisition cost amortization period | 60 years |
Group Protection | |
Product Information [Line Items] | |
Traditional contract acquisition cost amortization period | 4 years |
Retirement Plan Services | Minimum | |
Product Information [Line Items] | |
Traditional contract acquisition cost amortization period | 40 years |
Retirement Plan Services | Maximum | |
Product Information [Line Items] | |
Traditional contract acquisition cost amortization period | 50 years |
Adoption of ASU 2018-12 - Cumul
Adoption of ASU 2018-12 - Cumulative Effect Adjustments to Components of Stockholders’ Equity (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Jan. 01, 2021 | Dec. 31, 2020 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Total | $ 10,507 | $ 8,604 | $ 25,934 | ||
Retained Earnings | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Total | (869) | 1,414 | 3,734 | $ 4,167 | |
AOCI | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Total | $ (1,585) | $ (5,713) | $ 10,250 | 9,021 | |
Cumulative effect from adoption of new accounting standards | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Total | 4,822 | ||||
Cumulative effect from adoption of new accounting standards | Retained Earnings | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Total | (1,820) | ||||
Cumulative effect from adoption of new accounting standards | AOCI | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Total | 4,822 | ||||
Accounting Standards Update 2018-12 | Cumulative effect from adoption of new accounting standards | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
DAC, VOBA, DSI and DFEL | $ 2,271 | ||||
Additional liabilities for other insurance benefits | 1,197 | ||||
LFPB and Other | (1,641) | ||||
MRBs | 1,175 | ||||
Total | 3,002 | 3,002 | |||
Accounting Standards Update 2018-12 | Cumulative effect from adoption of new accounting standards | Retained Earnings | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
DAC, VOBA, DSI and DFEL | 0 | ||||
Additional liabilities for other insurance benefits | 0 | ||||
LFPB and Other | (121) | ||||
MRBs | (1,699) | ||||
Total | (1,820) | (1,820) | |||
Accounting Standards Update 2018-12 | Cumulative effect from adoption of new accounting standards | AOCI | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
DAC, VOBA, DSI and DFEL | 2,271 | ||||
Additional liabilities for other insurance benefits | 1,197 | ||||
LFPB and Other | (1,520) | ||||
MRBs | 2,874 | ||||
Total | $ 4,822 | $ 4,822 |
Adoption of ASU 2018-12 - Effec
Adoption of ASU 2018-12 - Effect of Accounting Adoption to Consolidated Balance Sheets (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Jan. 01, 2021 | Dec. 31, 2020 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Deferred acquisition costs, value of business acquired and deferred sales inducements | $ 12,418 | $ 12,263 | $ 12,162 | ||
Reinsurance recoverables | 45,110 | 21,804 | 20,713 | ||
Other assets | 10,597 | 7,677 | |||
Future contract benefits | (40,174) | (38,302) | (42,044) | ||
DFEL | 5,923 | 5,115 | 3,586 | ||
Other liabilities | 12,438 | 6,251 | |||
Total | 10,507 | 8,604 | $ 25,934 | ||
Retained Earnings | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Total | (869) | 1,414 | 3,734 | 4,167 | |
AOCI | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Total | $ (1,585) | $ (5,713) | $ 10,250 | 9,021 | |
Cumulative effect from adoption of new accounting standards | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Total | 4,822 | ||||
Cumulative effect from adoption of new accounting standards | Retained Earnings | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Total | (1,820) | ||||
Cumulative effect from adoption of new accounting standards | AOCI | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Total | 4,822 | ||||
Accounting Standards Update 2018-12 | Cumulative effect from adoption of new accounting standards | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Deferred acquisition costs, value of business acquired and deferred sales inducements | 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 | 3,002 | |||
Accounting Standards Update 2018-12 | Cumulative effect from adoption of new accounting standards | Retained Earnings | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Deferred acquisition costs, value of business acquired and deferred sales inducements | 0 | ||||
Reinsurance recoverables | 607 | ||||
Other assets | 5,795 | ||||
Future contract benefits | (760) | ||||
MRBs, net | (7,956) | ||||
DFEL | 0 | ||||
Other liabilities | 494 | ||||
Total | (1,820) | (1,820) | |||
Accounting Standards Update 2018-12 | Cumulative effect from adoption of new accounting standards | AOCI | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Deferred acquisition costs, value of business acquired and deferred sales inducements | 6,079 | ||||
Reinsurance recoverables | 2,556 | ||||
Other assets | 0 | ||||
Future contract benefits | (2,966) | ||||
MRBs, net | 3,656 | ||||
DFEL | (3,190) | ||||
Other liabilities | (1,313) | ||||
Total | $ 4,822 | $ 4,822 |
Adoption of ASU 2018-12 - Summa
Adoption of ASU 2018-12 - Summary of Changes in DAC, VOBA and DSI (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
DAC | $ 11,000 | |||
Balance as of beginning-of-year | 887 | |||
Balance as of end-of-year | 275 | |||
DAC, VOBA and DSI | $ 12,418 | $ 12,263 | 12,162 | |
Variable Annuities | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
DAC | 3,868 | 3,880 | $ 3,860 | 3,727 |
Balance as of end-of-year | 157 | 167 | 181 | 196 |
DAC, VOBA and DSI | 4,025 | 4,047 | ||
Fixed Annuities | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
DAC | 421 | 439 | 448 | 479 |
Balance as of beginning-of-year | 15 | 17 | 20 | 23 |
Balance as of end-of-year | 20 | 23 | 27 | 30 |
DAC, VOBA and DSI | 456 | 479 | ||
Traditional Life | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
DAC | 1,332 | 1,286 | 1,146 | 1,041 |
Balance as of beginning-of-year | 42 | 50 | 59 | 67 |
DAC, VOBA and DSI | 1,374 | 1,336 | ||
UL and Other | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
DAC | 5,709 | 5,518 | 5,269 | 5,328 |
Balance as of beginning-of-year | 402 | 454 | 499 | 797 |
Balance as of end-of-year | 28 | 30 | 31 | 35 |
DAC, VOBA and DSI | 6,139 | 6,002 | ||
Group Protection | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
DAC | 154 | 141 | 140 | 187 |
DAC, VOBA and DSI | 154 | 141 | ||
Retirement Plan Services | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
DAC | 244 | 241 | 239 | 238 |
Balance as of end-of-year | 26 | 17 | $ 14 | 14 |
DAC, VOBA and DSI | $ 270 | 258 | ||
As Previously Reported | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
DAC | 5,590 | |||
Balance as of beginning-of-year | 234 | |||
Balance as of end-of-year | 259 | |||
DAC, VOBA and DSI | 13,873 | 6,083 | ||
As Previously Reported | Variable Annuities | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
DAC | 3,675 | |||
Balance as of end-of-year | 194 | |||
As Previously Reported | Fixed Annuities | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
DAC | 264 | |||
Balance as of beginning-of-year | 0 | |||
Balance as of end-of-year | 17 | |||
As Previously Reported | Traditional Life | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
DAC | 1,041 | |||
Balance as of beginning-of-year | 67 | |||
As Previously Reported | UL and Other | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
DAC | 297 | |||
Balance as of beginning-of-year | 167 | |||
Balance as of end-of-year | 35 | |||
As Previously Reported | Group Protection | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
DAC | 187 | |||
As Previously Reported | Retirement Plan Services | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
DAC | 126 | |||
Balance as of end-of-year | 13 | |||
Adoption of New Accounting Standard | Accounting Standards Update 2018-12 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
DAC | 5,410 | |||
Balance as of beginning-of-year | 653 | |||
Balance as of end-of-year | 16 | |||
DAC, VOBA and DSI | $ (1,610) | 6,079 | ||
Adoption of New Accounting Standard | Accounting Standards Update 2018-12 | Variable Annuities | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
DAC | 52 | |||
Balance as of end-of-year | 2 | |||
Adoption of New Accounting Standard | Accounting Standards Update 2018-12 | Fixed Annuities | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
DAC | 215 | |||
Balance as of beginning-of-year | 23 | |||
Balance as of end-of-year | 13 | |||
Adoption of New Accounting Standard | Traditional Life | Accounting Standards Update 2018-12 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
DAC | 0 | |||
Balance as of beginning-of-year | 0 | |||
Adoption of New Accounting Standard | UL and Other | Accounting Standards Update 2018-12 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
DAC | 5,031 | |||
Balance as of beginning-of-year | 630 | |||
Balance as of end-of-year | 0 | |||
Adoption of New Accounting Standard | Group Protection | Accounting Standards Update 2018-12 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
DAC | 0 | |||
Adoption of New Accounting Standard | Retirement Plan Services | Accounting Standards Update 2018-12 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
DAC | 112 | |||
Balance as of end-of-year | $ 1 |
Adoption of ASU 2018-12 - Sum_2
Adoption of ASU 2018-12 - Summary of Changes in DFEL (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
DFEL | $ 5,923 | $ 5,115 | $ 3,586 | |
UL and Other | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
DFEL | 5,579 | 4,766 | $ 3,934 | 3,262 |
As Previously Reported | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
DFEL | 5,765 | 396 | ||
As Previously Reported | UL and Other | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
DFEL | 77 | |||
Adoption of New Accounting Standard | Accounting Standards Update 2018-12 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
DFEL | (650) | 3,190 | ||
Adoption of New Accounting Standard | Accounting Standards Update 2018-12 | UL and Other | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
DFEL | 3,185 | |||
Variable Annuities | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
DFEL | $ 300 | $ 310 | $ 318 | 324 |
Variable Annuities | As Previously Reported | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
DFEL | 319 | |||
Variable Annuities | Adoption of New Accounting Standard | Accounting Standards Update 2018-12 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
DFEL | $ 5 |
Adoption of ASU 2018-12 - Sum_3
Adoption of ASU 2018-12 - Summary of Changes in Future Contract Benefits (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2020 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Future contract benefits | $ 40,174 | $ 38,302 | $ 42,044 |
Accounting Standards Update 2018-12 | Cumulative effect from adoption of new accounting standards | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Future contract benefits | 3,726 | ||
Accounting Standards Update 2018-12 | Cumulative effect from adoption of new accounting standards | Retained Earnings | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Future contract benefits | 760 | ||
Payout Annuities | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Future contract benefits | 2,667 | ||
Payout Annuities | Accounting Standards Update 2018-12 | Cumulative effect from adoption of new accounting standards | Retained Earnings | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Future contract benefits | 44 | ||
Traditional Life | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Future contract benefits | 3,912 | ||
Traditional Life | Accounting Standards Update 2018-12 | Cumulative effect from adoption of new accounting standards | Retained Earnings | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Future contract benefits | (2) | ||
Group Protection | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Future contract benefits | 5,939 | ||
Group Protection | Accounting Standards Update 2018-12 | Cumulative effect from adoption of new accounting standards | Retained Earnings | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Future contract benefits | 0 | ||
UL and Other | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Future contract benefits | 12,264 | ||
UL and Other | Accounting Standards Update 2018-12 | Cumulative effect from adoption of new accounting standards | Retained Earnings | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Future contract benefits | 92 | ||
Other Operations (1) | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Future contract benefits | 13,737 | ||
Other Operations (1) | Accounting Standards Update 2018-12 | Protective | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Future contract benefits | 7,400 | ||
Other Operations (1) | Accounting Standards Update 2018-12 | Swiss Re | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Future contract benefits | 3,300 | ||
Other Operations (1) | Accounting Standards Update 2018-12 | Cumulative effect from adoption of new accounting standards | Retained Earnings | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Future contract benefits | 626 | ||
Other | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Future contract benefits | 3,525 | ||
Other | Accounting Standards Update 2018-12 | Cumulative effect from adoption of new accounting standards | Retained Earnings | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Future contract benefits | 0 | ||
As Previously Reported | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Future contract benefits | 41,203 | 38,318 | |
As Previously Reported | Payout Annuities | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Future contract benefits | 2,313 | ||
As Previously Reported | Traditional Life | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Future contract benefits | 3,062 | ||
As Previously Reported | Group Protection | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Future contract benefits | 5,422 | ||
As Previously Reported | UL and Other | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Future contract benefits | 13,687 | ||
As Previously Reported | Other Operations (1) | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Future contract benefits | 10,309 | ||
As Previously Reported | Other Operations (1) | Accounting Standards Update 2018-12 | Protective | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Future contract benefits | 6,300 | ||
As Previously Reported | Other Operations (1) | Accounting Standards Update 2018-12 | Swiss Re | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Future contract benefits | 1,800 | ||
As Previously Reported | Other | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Future contract benefits | 3,525 | ||
Adoption of New Accounting Standard | Accounting Standards Update 2018-12 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Future contract benefits | $ (2,901) | (1,700) | |
Adoption of New Accounting Standard | Payout Annuities | Accounting Standards Update 2018-12 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Future contract benefits | (105) | ||
Adoption of New Accounting Standard | Traditional Life | Accounting Standards Update 2018-12 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Future contract benefits | 0 | ||
Adoption of New Accounting Standard | Group Protection | Accounting Standards Update 2018-12 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Future contract benefits | 0 | ||
Adoption of New Accounting Standard | UL and Other | Accounting Standards Update 2018-12 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Future contract benefits | (1,515) | ||
Adoption of New Accounting Standard | Other Operations (1) | Accounting Standards Update 2018-12 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Future contract benefits | (80) | ||
Adoption of New Accounting Standard | Other | Accounting Standards Update 2018-12 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Future contract benefits | 0 | ||
Single Discount Rate Measurement In AOCI | Accounting Standards Update 2018-12 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Future contract benefits | 4,666 | ||
Single Discount Rate Measurement In AOCI | Payout Annuities | Accounting Standards Update 2018-12 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Future contract benefits | 415 | ||
Single Discount Rate Measurement In AOCI | Traditional Life | Accounting Standards Update 2018-12 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Future contract benefits | 852 | ||
Single Discount Rate Measurement In AOCI | Group Protection | Accounting Standards Update 2018-12 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Future contract benefits | 517 | ||
Single Discount Rate Measurement In AOCI | UL and Other | Accounting Standards Update 2018-12 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Future contract benefits | 0 | ||
Single Discount Rate Measurement In AOCI | Other Operations (1) | Accounting Standards Update 2018-12 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Future contract benefits | 2,882 | ||
Single Discount Rate Measurement In AOCI | Other | Accounting Standards Update 2018-12 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Future contract benefits | $ 0 |
Adoption of ASU 2018-12 - Sum_4
Adoption of ASU 2018-12 - Summary of Changes in Reinsurance Recoverables (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2020 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Reinsurance recoverables, net of allowance for credit losses | $ 45,110 | $ 21,804 | $ 20,713 |
Other | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Reinsurance recoverables, net of allowance for credit losses | 1,346 | ||
Accounting Standards Update 2018-12 | Cumulative effect from adoption of new accounting standards | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Reinsurance recoverables, net of allowance for credit losses | 3,163 | ||
Accounting Standards Update 2018-12 | Cumulative effect from adoption of new accounting standards | Other | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Reinsurance recoverables, net of allowance for credit losses | 0 | ||
Accounting Standards Update 2018-12 | Cumulative effect from adoption of new accounting standards | Retained Earnings | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Reinsurance recoverables, net of allowance for credit losses | 607 | ||
Payout Annuities | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Reinsurance recoverables, net of allowance for credit losses | 5 | ||
Payout Annuities | Accounting Standards Update 2018-12 | Cumulative effect from adoption of new accounting standards | Retained Earnings | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Reinsurance recoverables, net of allowance for credit losses | 0 | ||
Traditional Life | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Reinsurance recoverables, net of allowance for credit losses | 460 | ||
Traditional Life | Accounting Standards Update 2018-12 | Cumulative effect from adoption of new accounting standards | Retained Earnings | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Reinsurance recoverables, net of allowance for credit losses | 0 | ||
Group Protection | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Reinsurance recoverables, net of allowance for credit losses | 162 | ||
Group Protection | Accounting Standards Update 2018-12 | Cumulative effect from adoption of new accounting standards | Retained Earnings | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Reinsurance recoverables, net of allowance for credit losses | 0 | ||
UL and Other | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Reinsurance recoverables, net of allowance for credit losses | 919 | ||
UL and Other | Accounting Standards Update 2018-12 | Cumulative effect from adoption of new accounting standards | Retained Earnings | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Reinsurance recoverables, net of allowance for credit losses | (3) | ||
Other Operations (1) | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Reinsurance recoverables, net of allowance for credit losses | 17,821 | ||
Other Operations (1) | Accounting Standards Update 2018-12 | Protective | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Reinsurance recoverables, net of allowance for credit losses | 13,200 | ||
Other Operations (1) | Accounting Standards Update 2018-12 | Swiss Re | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Reinsurance recoverables, net of allowance for credit losses | 3,200 | ||
Other Operations (1) | Accounting Standards Update 2018-12 | Cumulative effect from adoption of new accounting standards | Retained Earnings | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Reinsurance recoverables, net of allowance for credit losses | 610 | ||
As Previously Reported | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Reinsurance recoverables, net of allowance for credit losses | $ 24,450 | 17,550 | |
As Previously Reported | Other | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Reinsurance recoverables, net of allowance for credit losses | 1,346 | ||
As Previously Reported | Payout Annuities | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Reinsurance recoverables, net of allowance for credit losses | 5 | ||
As Previously Reported | Traditional Life | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Reinsurance recoverables, net of allowance for credit losses | 372 | ||
As Previously Reported | Group Protection | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Reinsurance recoverables, net of allowance for credit losses | 148 | ||
As Previously Reported | UL and Other | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Reinsurance recoverables, net of allowance for credit losses | 922 | ||
As Previously Reported | Other Operations (1) | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Reinsurance recoverables, net of allowance for credit losses | 14,757 | ||
As Previously Reported | Other Operations (1) | Accounting Standards Update 2018-12 | Protective | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Reinsurance recoverables, net of allowance for credit losses | 12,000 | ||
As Previously Reported | Other Operations (1) | Accounting Standards Update 2018-12 | Swiss Re | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Reinsurance recoverables, net of allowance for credit losses | 1,700 | ||
Single Discount Rate Measurement In AOCI | Accounting Standards Update 2018-12 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Reinsurance recoverables, net of allowance for credit losses | 2,556 | ||
Single Discount Rate Measurement In AOCI | Accounting Standards Update 2018-12 | Other | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Reinsurance recoverables, net of allowance for credit losses | 0 | ||
Single Discount Rate Measurement In AOCI | Payout Annuities | Accounting Standards Update 2018-12 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Reinsurance recoverables, net of allowance for credit losses | 0 | ||
Single Discount Rate Measurement In AOCI | Traditional Life | Accounting Standards Update 2018-12 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Reinsurance recoverables, net of allowance for credit losses | 88 | ||
Single Discount Rate Measurement In AOCI | Group Protection | Accounting Standards Update 2018-12 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Reinsurance recoverables, net of allowance for credit losses | 14 | ||
Single Discount Rate Measurement In AOCI | UL and Other | Accounting Standards Update 2018-12 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Reinsurance recoverables, net of allowance for credit losses | 0 | ||
Single Discount Rate Measurement In AOCI | Other Operations (1) | Accounting Standards Update 2018-12 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Reinsurance recoverables, net of allowance for credit losses | $ 2,454 |
Adoption of ASU 2018-12 - Sum_5
Adoption of ASU 2018-12 - Summary of Changes in Net Liability Position of MRBs (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
MRBs, net | $ (2,178) | $ (729) | $ 5,334 | |
Retirement Plan Services | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
MRBs, net | 9 | |||
Cumulative effect from adoption of new accounting standards | Accounting Standards Update 2018-12 | Retained Earnings | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
MRBs, net | 7,956 | |||
Cumulative effect from adoption of new accounting standards | Accounting Standards Update 2018-12 | Retained Earnings | Retirement Plan Services | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
MRBs, net | 10 | |||
As Previously Reported | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
MRBs, net | 1,034 | |||
As Previously Reported | Retirement Plan Services | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
MRBs, net | 11 | |||
Cumulative Effect of Credit Risk to AOCI | Cumulative effect from adoption of new accounting standards | Accounting Standards Update 2018-12 | AOCI | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
MRBs, net | (3,656) | |||
Cumulative Effect of Credit Risk to AOCI | Cumulative effect from adoption of new accounting standards | Accounting Standards Update 2018-12 | AOCI | Retirement Plan Services | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
MRBs, net | (12) | |||
Variable Annuities | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
MRBs, net | (2,180) | (662) | $ 2,398 | 5,207 |
Variable Annuities | Cumulative effect from adoption of new accounting standards | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
MRBs, net | (2,173) | (2,425) | ||
Variable Annuities | Cumulative effect from adoption of new accounting standards | Accounting Standards Update 2018-12 | Retained Earnings | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
MRBs, net | 7,968 | |||
Variable Annuities | As Previously Reported | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
MRBs, net | 831 | |||
Variable Annuities | Cumulative Effect of Credit Risk to AOCI | Cumulative effect from adoption of new accounting standards | Accounting Standards Update 2018-12 | AOCI | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
MRBs, net | (3,592) | |||
Fixed Annuities | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
MRBs, net | $ 32 | (45) | 114 | 118 |
Fixed Annuities | Cumulative effect from adoption of new accounting standards | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
MRBs, net | $ (40) | $ (44) | ||
Fixed Annuities | Cumulative effect from adoption of new accounting standards | Accounting Standards Update 2018-12 | Retained Earnings | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
MRBs, net | (22) | |||
Fixed Annuities | As Previously Reported | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
MRBs, net | 192 | |||
Fixed Annuities | Cumulative Effect of Credit Risk to AOCI | Cumulative effect from adoption of new accounting standards | Accounting Standards Update 2018-12 | AOCI | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
MRBs, net | $ (52) |
Adoption of ASU 2018-12 - Sum_6
Adoption of ASU 2018-12 - Summary of Changes in Net Asset Position of Ceded MRBs (Details) - Accounting Standards Update 2018-12 $ in Millions | Dec. 31, 2020 USD ($) |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Ceded MRBs, Net | $ 6,539 |
Retirement Plan Services | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Ceded MRBs, Net | 11 |
Cumulative effect from adoption of new accounting standards | Retained Earnings | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Ceded MRBs, Net | 5,710 |
Cumulative effect from adoption of new accounting standards | Retained Earnings | Retirement Plan Services | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Ceded MRBs, Net | 10 |
As Previously Reported | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Ceded MRBs, Net | 829 |
As Previously Reported | Retirement Plan Services | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Ceded MRBs, Net | 1 |
Variable Annuities | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Ceded MRBs, Net | 6,528 |
Variable Annuities | Cumulative effect from adoption of new accounting standards | Retained Earnings | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Ceded MRBs, Net | 5,700 |
Variable Annuities | As Previously Reported | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Ceded MRBs, Net | $ 828 |
Adoption of ASU 2018-12 - Sum_7
Adoption of ASU 2018-12 - Summary of Effect on Previously Reported Consolidated Balance Sheets (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
ASSETS | ||||
DAC, VOBA and DSI | $ 12,418 | $ 12,263 | $ 12,162 | |
Reinsurance recoverables, net of allowance for credit losses | 45,110 | 21,804 | 20,713 | |
Assets | 3,894 | 2,807 | ||
Other assets | 10,597 | 7,677 | ||
Total assets | 373,976 | 335,582 | ||
Liabilities | ||||
Future contract benefits | 40,174 | 38,302 | 42,044 | |
Liabilities | 1,716 | 2,078 | ||
Deferred front-end loads | 5,923 | 5,115 | 3,586 | |
Other liabilities | 12,438 | 6,251 | ||
Total liabilities | 363,469 | 326,978 | ||
Stockholder’s Equity | ||||
Retained earnings | (869) | 1,414 | ||
Accumulated other comprehensive income (loss) | (1,585) | (5,713) | ||
Total stockholder’s equity | $ 10,507 | 8,604 | $ 25,934 | |
As Previously Reported | ||||
ASSETS | ||||
DAC, VOBA and DSI | 13,873 | 6,083 | ||
Reinsurance recoverables, net of allowance for credit losses | 24,450 | 17,550 | ||
Other assets | 8,831 | |||
Total assets | 338,185 | |||
Liabilities | ||||
Future contract benefits | 41,203 | 38,318 | ||
Deferred front-end loads | 5,765 | 396 | ||
Other liabilities | 7,719 | |||
Total liabilities | 329,919 | |||
Stockholder’s Equity | ||||
Retained earnings | 2,436 | |||
Accumulated other comprehensive income (loss) | (7,073) | |||
Total stockholder’s equity | 8,266 | 22,860 | ||
Accounting Standards Update 2018-12 | Adoption of New Accounting Standard | ||||
ASSETS | ||||
DAC, VOBA and DSI | (1,610) | 6,079 | ||
Reinsurance recoverables, net of allowance for credit losses | (2,646) | |||
Assets | 2,807 | |||
Other assets | (1,154) | |||
Total assets | (2,603) | |||
Liabilities | ||||
Future contract benefits | (2,901) | (1,700) | ||
Liabilities | 2,078 | |||
Deferred front-end loads | (650) | $ 3,190 | ||
Other liabilities | (1,468) | |||
Total liabilities | (2,941) | |||
Stockholder’s Equity | ||||
Retained earnings | (1,022) | |||
Accumulated other comprehensive income (loss) | 1,360 | |||
Total stockholder’s equity | $ 338 | $ 3,074 |
Adoption of ASU 2018-12 - Sum_8
Adoption of ASU 2018-12 - Summary of Effect on Previously Reported Consolidated Statements of Comprehensive Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenues | |||
Fee income | $ 5,168 | $ 5,366 | $ 5,766 |
Realized gain (loss) | (4,934) | 418 | 859 |
Total revenues | 10,059 | 17,557 | 18,512 |
Expenses | |||
Benefits | 5,028 | 8,203 | 8,027 |
Interest credited | 3,202 | 2,860 | 2,912 |
Market risk benefit (gain) loss | (1,135) | 296 | (1,554) |
Policyholder liability remeasurement (gain) loss | (167) | 2,445 | (119) |
Commissions and other expenses | 5,249 | 4,927 | 5,011 |
Total expenses | 12,520 | 19,669 | 14,478 |
Income (loss) before taxes | (2,461) | (2,112) | 4,034 |
Federal income tax expense (benefit) | (673) | (437) | 737 |
Net income (loss) | (1,788) | (1,675) | 3,297 |
Other comprehensive income (loss), net of tax: | |||
Unrealized investment gain (loss) | 4,942 | (17,639) | (3,233) |
Market risk benefit gain (loss) | (211) | (923) | |
Policyholder liability discount rate remeasurement gain (loss) | (145) | 1,891 | 560 |
Total other comprehensive income (loss), net of tax | 4,128 | (15,963) | (3,593) |
Comprehensive income (loss) | $ 2,340 | (17,638) | (296) |
As Previously Reported | |||
Revenues | |||
Fee income | 5,783 | 6,630 | |
Realized gain (loss) | 214 | 711 | |
Total revenues | 17,770 | 19,228 | |
Expenses | |||
Benefits | 10,801 | 8,039 | |
Interest credited | 2,849 | 2,911 | |
Commissions and other expenses | 4,799 | 5,548 | |
Total expenses | 19,387 | 16,699 | |
Income (loss) before taxes | (1,617) | 2,529 | |
Federal income tax expense (benefit) | (332) | 420 | |
Net income (loss) | (1,285) | 2,109 | |
Other comprehensive income (loss), net of tax: | |||
Unrealized investment gain (loss) | (13,613) | (2,480) | |
Total other comprehensive income (loss), net of tax | (13,617) | (2,477) | |
Comprehensive income (loss) | (14,902) | (368) | |
Accounting Standards Update 2018-12 | Adoption of New Accounting Standard | |||
Revenues | |||
Fee income | (417) | (864) | |
Realized gain (loss) | 204 | 148 | |
Total revenues | (213) | (716) | |
Expenses | |||
Benefits | (2,598) | (12) | |
Interest credited | 11 | 1 | |
Market risk benefit (gain) loss | 296 | (1,554) | |
Policyholder liability remeasurement (gain) loss | 2,445 | (119) | |
Commissions and other expenses | 128 | (537) | |
Total expenses | 282 | (2,221) | |
Income (loss) before taxes | (495) | 1,505 | |
Federal income tax expense (benefit) | (105) | 317 | |
Net income (loss) | (390) | 1,188 | |
Other comprehensive income (loss), net of tax: | |||
Unrealized investment gain (loss) | (4,026) | (753) | |
Market risk benefit gain (loss) | (211) | (923) | |
Policyholder liability discount rate remeasurement gain (loss) | 1,891 | 560 | |
Total other comprehensive income (loss), net of tax | (2,346) | (1,116) | |
Comprehensive income (loss) | $ (2,736) | $ 72 |
Adoption of ASU 2018-12 - Sum_9
Adoption of ASU 2018-12 - Summary of Effect on Previously Reported Consolidated Statements of Stockholders Equity (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Balance as of beginning-of-year | $ 8,604 | $ 25,934 | |
Net income (loss) | (1,788) | (1,675) | $ 3,297 |
Other comprehensive income (loss), net of tax | 4,128 | (15,963) | (3,593) |
Balance as of end-of-year | 10,507 | 8,604 | 25,934 |
Cumulative effect from adoption of new accounting standards | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Balance as of beginning-of-year | 4,822 | ||
Retained Earnings | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Balance as of beginning-of-year | 1,414 | 3,734 | 4,167 |
Net income (loss) | (1,788) | (1,675) | 3,297 |
Balance as of end-of-year | (869) | 1,414 | 3,734 |
Retained Earnings | Cumulative effect from adoption of new accounting standards | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Balance as of beginning-of-year | (1,820) | ||
Accumulated other comprehensive income | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Balance as of beginning-of-year | (5,713) | 10,250 | 9,021 |
Other comprehensive income (loss), net of tax | 4,128 | (15,963) | (3,593) |
Balance as of end-of-year | (1,585) | (5,713) | 10,250 |
Accumulated other comprehensive income | Cumulative effect from adoption of new accounting standards | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Balance as of beginning-of-year | 4,822 | ||
As Previously Reported | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Balance as of beginning-of-year | 8,266 | 22,860 | |
Net income (loss) | (1,285) | 2,109 | |
Other comprehensive income (loss), net of tax | (13,617) | (2,477) | |
Balance as of end-of-year | 8,266 | 22,860 | |
As Previously Reported | Retained Earnings | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Balance as of beginning-of-year | 2,436 | 4,366 | 4,167 |
Net income (loss) | (1,285) | 2,109 | |
Balance as of end-of-year | 2,436 | 4,366 | |
As Previously Reported | Accumulated other comprehensive income | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Balance as of beginning-of-year | (7,073) | 6,544 | 9,021 |
Other comprehensive income (loss), net of tax | (13,617) | (2,477) | |
Balance as of end-of-year | (7,073) | 6,544 | |
Accounting Standards Update 2018-12 | Cumulative effect from adoption of new accounting standards | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Balance as of beginning-of-year | 3,002 | ||
Accounting Standards Update 2018-12 | Retained Earnings | Cumulative effect from adoption of new accounting standards | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Balance as of beginning-of-year | (1,820) | ||
Accounting Standards Update 2018-12 | Accumulated other comprehensive income | Cumulative effect from adoption of new accounting standards | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Balance as of beginning-of-year | 4,822 | ||
Accounting Standards Update 2018-12 | Adoption of New Accounting Standard | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Balance as of beginning-of-year | 338 | 3,074 | |
Net income (loss) | (390) | 1,188 | |
Other comprehensive income (loss), net of tax | (2,346) | (1,116) | |
Balance as of end-of-year | 338 | 3,074 | |
Accounting Standards Update 2018-12 | Adoption of New Accounting Standard | Retained Earnings | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Balance as of beginning-of-year | (1,022) | (632) | |
Net income (loss) | (390) | 1,188 | |
Balance as of end-of-year | (1,022) | (632) | |
Accounting Standards Update 2018-12 | Adoption of New Accounting Standard | Retained Earnings | Cumulative effect from adoption of new accounting standards | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Balance as of beginning-of-year | (1,820) | ||
Balance as of end-of-year | (1,820) | ||
Accounting Standards Update 2018-12 | Adoption of New Accounting Standard | Accumulated other comprehensive income | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Balance as of beginning-of-year | $ 1,360 | 3,706 | |
Other comprehensive income (loss), net of tax | (2,346) | (1,116) | |
Balance as of end-of-year | $ 1,360 | 3,706 | |
Accounting Standards Update 2018-12 | Adoption of New Accounting Standard | Accumulated other comprehensive income | Cumulative effect from adoption of new accounting standards | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Balance as of beginning-of-year | $ 4,822 |
Adoption of ASU 2018-12 - Su_10
Adoption of ASU 2018-12 - Summary of Effect on Previously Reported Consolidated Statements of Cash Flows (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash Flows from Operating Activities | |||
Net income (loss) | $ (1,788) | $ (1,675) | $ 3,297 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Realized (gain) loss | 4,934 | (418) | (859) |
Market risk benefit (gain) loss | (1,135) | 296 | (1,554) |
Change in: | |||
Deferred acquisition costs, value of business acquired, deferred sales inducements and deferred front-end loads | 642 | 495 | 496 |
Insurance liabilities and reinsurance-related balances | (2,499) | 652 | (893) |
Accrued expenses | 223 | (101) | 377 |
Federal income tax accruals | (563) | (376) | 708 |
Other | $ 324 | 406 | (351) |
As Previously Reported | |||
Cash Flows from Operating Activities | |||
Net income (loss) | (1,285) | 2,109 | |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Realized (gain) loss | (214) | (711) | |
Change in: | |||
Deferred acquisition costs, value of business acquired, deferred sales inducements and deferred front-end loads | 45 | 289 | |
Insurance liabilities and reinsurance-related balances | 727 | (862) | |
Accrued expenses | (98) | 370 | |
Federal income tax accruals | (271) | 391 | |
Other | 375 | (365) | |
Accounting Standards Update 2018-12 | Adoption of New Accounting Standard | |||
Cash Flows from Operating Activities | |||
Net income (loss) | (390) | 1,188 | |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Realized (gain) loss | (204) | (148) | |
Market risk benefit (gain) loss | 296 | (1,554) | |
Change in: | |||
Deferred acquisition costs, value of business acquired, deferred sales inducements and deferred front-end loads | 450 | 207 | |
Insurance liabilities and reinsurance-related balances | (75) | (31) | |
Accrued expenses | (3) | 7 | |
Federal income tax accruals | (105) | 317 | |
Other | $ 31 | $ 14 |
Investments - Reconciliation of
Investments - Reconciliation of Available-for-Sale Securities from Cost Basis to Fair Value (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Securities, Available-for-Sale [Line Items] | ||||
Amortized Cost | $ 88,231 | $ 110,944 | ||
Gross Unrealized Gains | 1,054 | 1,041 | ||
Gross Unrealized Losses | 6,966 | 12,499 | ||
Allowance for Credit Losses | 19 | 21 | $ 19 | $ 13 |
Fair Value | 82,300 | 99,465 | ||
Corporate bonds | ||||
Debt Securities, Available-for-Sale [Line Items] | ||||
Amortized Cost | 68,811 | 88,950 | ||
Gross Unrealized Gains | 820 | 763 | ||
Gross Unrealized Losses | 5,757 | 10,538 | ||
Allowance for Credit Losses | 8 | 9 | 17 | 12 |
Fair Value | 63,866 | 79,166 | ||
U.S. government bonds | ||||
Debt Securities, Available-for-Sale [Line Items] | ||||
Amortized Cost | 414 | 377 | ||
Gross Unrealized Gains | 7 | 5 | ||
Gross Unrealized Losses | 28 | 31 | ||
Allowance for Credit Losses | 0 | 0 | ||
Fair Value | 393 | 351 | ||
State and municipal bonds | ||||
Debt Securities, Available-for-Sale [Line Items] | ||||
Amortized Cost | 2,675 | 5,198 | ||
Gross Unrealized Gains | 97 | 170 | ||
Gross Unrealized Losses | 230 | 483 | ||
Allowance for Credit Losses | 0 | 0 | ||
Fair Value | 2,542 | 4,885 | ||
Foreign government bonds | ||||
Debt Securities, Available-for-Sale [Line Items] | ||||
Amortized Cost | 309 | 339 | ||
Gross Unrealized Gains | 15 | 17 | ||
Gross Unrealized Losses | 46 | 45 | ||
Allowance for Credit Losses | 0 | 0 | ||
Fair Value | 278 | 311 | ||
RMBS | ||||
Debt Securities, Available-for-Sale [Line Items] | ||||
Amortized Cost | 1,719 | 2,025 | ||
Gross Unrealized Gains | 27 | 21 | ||
Gross Unrealized Losses | 138 | 203 | ||
Allowance for Credit Losses | 6 | 7 | $ 1 | $ 1 |
Fair Value | 1,602 | 1,836 | ||
CMBS | ||||
Debt Securities, Available-for-Sale [Line Items] | ||||
Amortized Cost | 1,520 | 1,908 | ||
Gross Unrealized Gains | 5 | 3 | ||
Gross Unrealized Losses | 181 | 244 | ||
Allowance for Credit Losses | 0 | 0 | ||
Fair Value | 1,344 | 1,667 | ||
ABS | ||||
Debt Securities, Available-for-Sale [Line Items] | ||||
Amortized Cost | 12,556 | 11,791 | ||
Gross Unrealized Gains | 62 | 37 | ||
Gross Unrealized Losses | 571 | 925 | ||
Allowance for Credit Losses | 4 | 4 | ||
Fair Value | 12,043 | 10,899 | ||
Hybrid and redeemable preferred securities | ||||
Debt Securities, Available-for-Sale [Line Items] | ||||
Amortized Cost | 227 | 356 | ||
Gross Unrealized Gains | 21 | 25 | ||
Gross Unrealized Losses | 15 | 30 | ||
Allowance for Credit Losses | 1 | 1 | ||
Fair Value | $ 232 | $ 350 |
Investments - Available-for-Sal
Investments - Available-for-Sale Securities by Contractual Maturities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Amortized Cost | ||
Amortized Cost | $ 88,231 | $ 110,944 |
Fair Value | ||
Total fixed maturity AFS securities | 82,300 | $ 99,465 |
Fixed maturity AFS securities other than structured securities | ||
Amortized Cost | ||
Due in one year or less | 4,389 | |
Due after one year through five years | 17,444 | |
Due after five years through ten years | 15,405 | |
Due after ten years | 35,198 | |
Amortized Cost | 72,436 | |
Fair Value | ||
Due in one year or less | 4,354 | |
Due after one year through five years | 16,858 | |
Due after five years through ten years | 14,403 | |
Due after ten years | 31,696 | |
Total fixed maturity AFS securities | 67,311 | |
Structured securities (RMBS, CMBS, ABS) | ||
Amortized Cost | ||
Amortized Cost | 15,795 | |
Fair Value | ||
Total fixed maturity AFS securities | $ 14,989 |
Investments - Fair Value and Gr
Investments - Fair Value and Gross Unrealized Losses in a Continuous Unrealized Loss Position (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 USD ($) security | Dec. 31, 2022 USD ($) security | |
Fair Value | ||
Less Than or Equal to Twelve Months | $ 16,851 | $ 69,198 |
Greater Than Twelve Months | 43,082 | 11,105 |
Total | 59,933 | 80,303 |
Gross Unrealized Losses | ||
Less Than or Equal to Twelve Months | 1,999 | 10,013 |
Greater Than Twelve Months | 4,967 | 2,486 |
Total | $ 6,966 | $ 12,499 |
Total number of fixed maturity AFS securities in an unrealized loss position | security | 7,167,000,000 | 8,106,000,000 |
Unrealized holding losses arising during the period | $ 7 | $ 6 |
Corporate bonds | ||
Fair Value | ||
Less Than or Equal to Twelve Months | 13,439 | 57,656 |
Greater Than Twelve Months | 33,285 | 6,867 |
Total | 46,724 | 64,523 |
Gross Unrealized Losses | ||
Less Than or Equal to Twelve Months | 1,744 | 8,684 |
Greater Than Twelve Months | 4,013 | 1,854 |
Total | 5,757 | 10,538 |
U.S. government bonds | ||
Fair Value | ||
Less Than or Equal to Twelve Months | 65 | 236 |
Greater Than Twelve Months | 194 | 27 |
Total | 259 | 263 |
Gross Unrealized Losses | ||
Less Than or Equal to Twelve Months | 6 | 25 |
Greater Than Twelve Months | 22 | 6 |
Total | 28 | 31 |
State and municipal bonds | ||
Fair Value | ||
Less Than or Equal to Twelve Months | 371 | 1,850 |
Greater Than Twelve Months | 814 | 227 |
Total | 1,185 | 2,077 |
Gross Unrealized Losses | ||
Less Than or Equal to Twelve Months | 72 | 414 |
Greater Than Twelve Months | 158 | 69 |
Total | 230 | 483 |
Foreign government bonds | ||
Fair Value | ||
Less Than or Equal to Twelve Months | 108 | 122 |
Greater Than Twelve Months | 57 | 58 |
Total | 165 | 180 |
Gross Unrealized Losses | ||
Less Than or Equal to Twelve Months | 31 | 18 |
Greater Than Twelve Months | 15 | 27 |
Total | 46 | 45 |
RMBS | ||
Fair Value | ||
Less Than or Equal to Twelve Months | 355 | 1,337 |
Greater Than Twelve Months | 840 | 191 |
Total | 1,195 | 1,528 |
Gross Unrealized Losses | ||
Less Than or Equal to Twelve Months | 20 | 160 |
Greater Than Twelve Months | 118 | 43 |
Total | 138 | 203 |
CMBS | ||
Fair Value | ||
Less Than or Equal to Twelve Months | 583 | 1,224 |
Greater Than Twelve Months | 586 | 312 |
Total | 1,169 | 1,536 |
Gross Unrealized Losses | ||
Less Than or Equal to Twelve Months | 56 | 156 |
Greater Than Twelve Months | 125 | 88 |
Total | 181 | 244 |
ABS | ||
Fair Value | ||
Less Than or Equal to Twelve Months | 1,898 | 6,712 |
Greater Than Twelve Months | 7,212 | 3,325 |
Total | 9,110 | 10,037 |
Gross Unrealized Losses | ||
Less Than or Equal to Twelve Months | 68 | 551 |
Greater Than Twelve Months | 503 | 374 |
Total | 571 | 925 |
Hybrid and redeemable preferred securities | ||
Fair Value | ||
Less Than or Equal to Twelve Months | 32 | 61 |
Greater Than Twelve Months | 94 | 98 |
Total | 126 | 159 |
Gross Unrealized Losses | ||
Less Than or Equal to Twelve Months | 2 | 5 |
Greater Than Twelve Months | 13 | 25 |
Total | $ 15 | $ 30 |
Investments - Schedule of Avail
Investments - Schedule of Available-for-Sale Securities Whose Value is Below Amortized Cost (Details) $ in Millions | Dec. 31, 2023 USD ($) security | Dec. 31, 2022 USD ($) security |
Fair Value | ||
Nine months or greater, but less than twelve months | $ 16,851 | $ 69,198 |
Twelve months or greater | 43,082 | 11,105 |
Total | 59,933 | 80,303 |
Gross Unrealized Losses | ||
Nine months or greater, but less than twelve months | 1,999 | 10,013 |
Twelve months or greater | 4,967 | 2,486 |
Total | $ 6,966 | $ 12,499 |
Number of Securities | ||
Total | security | 7,167,000,000 | 8,106,000,000 |
Fair Value Decline, Greater Than 20% | ||
Fair Value | ||
Less than six months | $ 2,480 | $ 10,895 |
Six months or greater, but less than nine months | 321 | 4,256 |
Nine months or greater, but less than twelve months | 321 | 362 |
Twelve months or greater | 3,485 | 2 |
Total | 6,607 | 15,515 |
Gross Unrealized Losses | ||
Less than six months | 916 | 3,514 |
Six months or greater, but less than nine months | 90 | 2,150 |
Nine months or greater, but less than twelve months | 106 | 243 |
Twelve months or greater | 1,336 | 0 |
Total | $ 2,448 | $ 5,907 |
Number of Securities | ||
Less than six months | security | 529,000,000 | 1,489,000,000 |
Six months or greater, but less than nine months | security | 79,000,000 | 640,000,000 |
Nine months or greater, but less than twelve months | security | 87,000,000 | 73,000,000 |
Twelve months or greater | security | 704,000,000 | 15,000,000 |
Total | security | 1,399,000,000 | 2,217,000,000 |
Investments - Narrative (Detail
Investments - Narrative (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 USD ($) loan security | Dec. 31, 2022 USD ($) loan security | Dec. 31, 2021 USD ($) | |
Investments [Line Items] | |||
Increase (decrease) in gross AFS securities unrealized losses | $ (5,500) | ||
Trading securities change in gross gain (loss) | 80 | $ (628) | $ (48) |
Losses from loan modifications (less than) | $ 1 | ||
Number of partnerships in alternative investment portfolio | security | 332 | 328 | |
Alternative investments as a percentage of overall invested assets | 3% | 2% | |
Fair value of collateral received that we are permitted to sell or re-pledge | $ 25 | ||
Fixed maturity available-for-sale securities, at fair value | 82,300 | $ 99,465 | |
Investment commitments | 3,000 | ||
Investment commitments for limited partnerships | 2,300 | ||
Investment commitments for mortgage loans on real estate | 536 | ||
Investment commitments for private placements | 197 | ||
Asset Pledged as Collateral | |||
Investments [Line Items] | |||
Fixed maturity available-for-sale securities, at fair value | 42 | ||
Derivative Counterparties | |||
Investments [Line Items] | |||
Fair value of collateral received that we are permitted to sell or re-pledge | 1,300 | ||
Fair value of securities received as collateral that have been resold or repledged | $ 553 | ||
Minimum | |||
Investments [Line Items] | |||
Percentage of the fair value of securities obtained as collateral under reverse repurchase agreements | 80% | ||
Maximum | |||
Investments [Line Items] | |||
Percentage of the fair value of securities obtained as collateral under reverse repurchase agreements | 95% | ||
Commercial | |||
Investments [Line Items] | |||
Number of impaired loans | loan | 3 | 2 | |
Impaired financing receivable, principal balance | $ 2 | $ 1 | |
Residential | |||
Investments [Line Items] | |||
Number of loans past due | loan | 116 | 73 | |
Number of loans in foreclosure | loan | 82 | 49 | |
Mortgage loans in process of foreclosure | $ 38 | $ 21 | |
Number of impaired loans | loan | 99 | 37 | |
Impaired financing receivable, principal balance | $ 47 | $ 16 | |
California | Mortgage loans on real estate | Geographic Concentration Risk | Commercial | |||
Investments [Line Items] | |||
Concentration risk | 27% | 28% | |
California | Mortgage loans on real estate | Geographic Concentration Risk | Residential | |||
Investments [Line Items] | |||
Concentration risk | 17% | ||
Texas | Mortgage loans on real estate | Geographic Concentration Risk | Commercial | |||
Investments [Line Items] | |||
Concentration risk | 9% | 9% | |
New Jersey | Mortgage loans on real estate | Geographic Concentration Risk | Residential | |||
Investments [Line Items] | |||
Concentration risk | 14% | 12% | |
NEW YORK | Mortgage loans on real estate | Geographic Concentration Risk | Residential | |||
Investments [Line Items] | |||
Concentration risk | 12% | ||
Corporate bonds | |||
Investments [Line Items] | |||
Percentage of fair value rated as investment grade | 96% | 96% | |
Amortized cost of portfolio rated below investment grade | $ 2,700 | $ 3,500 | |
Fair value of portfolio rated below investment grade | 2,600 | 3,300 | |
White Chapel V LLC | MBS | |||
Investments [Line Items] | |||
Fair value, concentration of risk | $ 1,300 | ||
White Chapel V LLC | Investments | Lender Concentration Risk | MBS | |||
Investments [Line Items] | |||
Concentration risk | 1% | ||
White Chapel LLC | MBS | |||
Investments [Line Items] | |||
Fair value, concentration of risk | $ 1,000 | $ 1,000 | |
White Chapel LLC | Investments | Lender Concentration Risk | MBS | |||
Investments [Line Items] | |||
Concentration risk | 1% | 1% | |
Federal Home Loan Mortgage Corporation | MBS | |||
Investments [Line Items] | |||
Fair value, concentration of risk | $ 702 | ||
Federal Home Loan Mortgage Corporation | Investments | Lender Concentration Risk | MBS | |||
Investments [Line Items] | |||
Concentration risk | 1% | ||
Financial Service | Securities Investment | |||
Investments [Line Items] | |||
Fair value, concentration of risk | $ 16,600 | $ 19,200 | |
Financial Service | Investments | Lender Concentration Risk | Securities Investment | |||
Investments [Line Items] | |||
Concentration risk | 14% | 15% | |
Consumer Non-Cyclical Industry | Securities Investment | |||
Investments [Line Items] | |||
Fair value, concentration of risk | $ 11,300 | $ 14,300 | |
Consumer Non-Cyclical Industry | Investments | Lender Concentration Risk | Securities Investment | |||
Investments [Line Items] | |||
Concentration risk | 10% | 11% |
Investments - Changes in Allowa
Investments - Changes in Allowance for Credit Losses on AFS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Securities, Available-for-Sale, Allowance for Credit Loss [Roll Forward] | |||
Balance as of beginning-of-year | $ 21 | $ 19 | $ 13 |
Additions from purchases of PCD debt securities | 0 | 0 | 0 |
Additions for securities for which credit losses were not previously recognized | 25 | 7 | 9 |
Additions (reductions) for securities for which credit losses were previously recognized | (4) | 9 | 5 |
Reductions for securities disposed | (2) | (2) | (2) |
Reductions for securities charged-off | (21) | (12) | (6) |
Balance as of end-of-period | 19 | 21 | 19 |
Accrued interest receivable on fixed maturity AFS securities | 814 | 1,100 | 944 |
Corporate bonds | |||
Debt Securities, Available-for-Sale, Allowance for Credit Loss [Roll Forward] | |||
Balance as of beginning-of-year | 9 | 17 | 12 |
Additions from purchases of PCD debt securities | 0 | 0 | 0 |
Additions for securities for which credit losses were not previously recognized | 24 | 4 | 8 |
Additions (reductions) for securities for which credit losses were previously recognized | (2) | 2 | 5 |
Reductions for securities disposed | (2) | (2) | (2) |
Reductions for securities charged-off | (21) | (12) | (6) |
Balance as of end-of-period | 8 | 9 | 17 |
RMBS | |||
Debt Securities, Available-for-Sale, Allowance for Credit Loss [Roll Forward] | |||
Balance as of beginning-of-year | 7 | 1 | 1 |
Additions from purchases of PCD debt securities | 0 | 0 | 0 |
Additions for securities for which credit losses were not previously recognized | 1 | 3 | 0 |
Additions (reductions) for securities for which credit losses were previously recognized | (2) | 3 | 0 |
Reductions for securities disposed | 0 | 0 | 0 |
Reductions for securities charged-off | 0 | 0 | 0 |
Balance as of end-of-period | 6 | 7 | 1 |
Other | |||
Debt Securities, Available-for-Sale, Allowance for Credit Loss [Roll Forward] | |||
Balance as of beginning-of-year | 5 | 1 | 0 |
Additions from purchases of PCD debt securities | 0 | 0 | 0 |
Additions for securities for which credit losses were not previously recognized | 0 | 0 | 1 |
Additions (reductions) for securities for which credit losses were previously recognized | 0 | 4 | 0 |
Reductions for securities disposed | 0 | 0 | 0 |
Reductions for securities charged-off | 0 | 0 | 0 |
Balance as of end-of-period | $ 5 | $ 5 | $ 1 |
Investments - Fair Value of Tra
Investments - Fair Value of Trading Securities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Debt and Equity Securities, FV-NI [Line Items] | ||
Trading securities | $ 2,321 | $ 3,446 |
Corporate bonds | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Trading securities | 1,615 | 2,196 |
State and municipal bonds | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Trading securities | 21 | 21 |
Foreign government bonds | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Trading securities | 46 | 49 |
RMBS | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Trading securities | 62 | 99 |
CMBS | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Trading securities | 104 | 137 |
ABS | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Trading securities | 455 | 919 |
Hybrid and redeemable preferred securities | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Trading securities | $ 18 | $ 25 |
Investments - Composition of Cu
Investments - Composition of Current and Past Due Mortgage Loans on Real Estate (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Allowance for credit losses | $ (114) | $ (98) |
Unamortized premium (discount) | 36 | 27 |
Mark-to-market gains (losses) | (37) | (27) |
Total carrying value | 18,873 | 18,211 |
Current | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans on real estate, gross | 18,830 | 18,228 |
30 to 59 days past due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans on real estate, gross | 89 | 42 |
60 to 89 days past due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans on real estate, gross | 9 | 6 |
90 or more days past due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans on real estate, gross | 60 | 33 |
Commercial | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Allowance for credit losses | (86) | (83) |
Unamortized premium (discount) | (7) | (9) |
Mark-to-market gains (losses) | (36) | (27) |
Total carrying value | 17,097 | 16,813 |
Commercial | Current | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans on real estate, gross | 17,165 | 16,913 |
Commercial | 30 to 59 days past due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans on real estate, gross | 61 | 19 |
Commercial | 60 to 89 days past due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans on real estate, gross | 0 | 0 |
Commercial | 90 or more days past due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans on real estate, gross | 0 | 0 |
Residential | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Allowance for credit losses | (28) | (15) |
Unamortized premium (discount) | 43 | 36 |
Mark-to-market gains (losses) | (1) | 0 |
Total carrying value | 1,776 | 1,398 |
Residential | Current | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans on real estate, gross | 1,665 | 1,315 |
Residential | 30 to 59 days past due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans on real estate, gross | 28 | 23 |
Residential | 60 to 89 days past due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans on real estate, gross | 9 | 6 |
Residential | 90 or more days past due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans on real estate, gross | $ 60 | $ 33 |
Investments - Schedule of Avera
Investments - Schedule of Average Carrying Value of Impaired Mortgage Loans on Real Estate (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Investments [Abstract] | |||
Average aggregate carrying value for impaired mortgage loans on real estate | $ 30 | $ 16 | $ 32 |
Investments - Amortized Cost of
Investments - Amortized Cost of Mortgage Loans on Real Estate on Nonaccrual Status (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual with no Allowance for Credit Losses | $ 0 | $ 0 |
Nonaccrual | 62 | 34 |
Commercial | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual with no Allowance for Credit Losses | 0 | 0 |
Nonaccrual | 0 | 0 |
Residential | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual with no Allowance for Credit Losses | 0 | 0 |
Nonaccrual | $ 62 | $ 34 |
Investments - Commercial Mortga
Investments - Commercial Mortgage Loans by Year of Origination (Details) - Commercial $ in Millions | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Origination Year | ||
Year one | $ 1,420 | $ 1,876 |
Year two | 1,849 | 2,407 |
Year three | 2,378 | 1,297 |
Year four | 1,216 | 2,753 |
Year five | 2,494 | 2,289 |
Year six and prior | 7,862 | 6,301 |
Total | 17,219 | 16,923 |
Less than 65% | ||
Origination Year | ||
Year one | 1,366 | 1,769 |
Year two | 1,709 | 2,335 |
Year three | 2,317 | 1,280 |
Year four | 1,205 | 2,643 |
Year five | 2,404 | 2,222 |
Year six and prior | 7,770 | 6,170 |
Total | $ 16,771 | $ 16,419 |
Debt-Service Coverage Ratio | ||
Year one | 1.90 | 2.06 |
Year two | 2.07 | 3.05 |
Year three | 3.34 | 2.99 |
Year four | 3.23 | 2.17 |
Year five | 2.39 | 2.17 |
Year six and prior | 2.39 | 2.44 |
65% to 75% | ||
Origination Year | ||
Year one | $ 54 | $ 105 |
Year two | 140 | 72 |
Year three | 61 | 17 |
Year four | 11 | 81 |
Year five | 80 | 67 |
Year six and prior | 78 | 131 |
Total | $ 424 | $ 473 |
Debt-Service Coverage Ratio | ||
Year one | 1.38 | 1.50 |
Year two | 1.54 | 1.53 |
Year three | 1.55 | 1.58 |
Year four | 1.38 | 1.50 |
Year five | 1.56 | 1.62 |
Year six and prior | 1.60 | 1.75 |
Greater than 75% | ||
Origination Year | ||
Year one | $ 0 | $ 2 |
Year two | 0 | 0 |
Year three | 0 | 0 |
Year four | 0 | 29 |
Year five | 10 | 0 |
Year six and prior | 14 | 0 |
Total | $ 24 | $ 31 |
Debt-Service Coverage Ratio | ||
Year one | 0 | 1.45 |
Year two | 0 | 0 |
Year three | 0 | 0 |
Year four | 0 | 1.58 |
Year five | 2.33 | 0 |
Year six and prior | 0.87 | 0 |
Investments - Residential Mortg
Investments - Residential Mortgage Loans by Year of Origination (Details) - Residential - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year one | $ 517 | $ 583 |
Year two | 555 | 533 |
Year three | 483 | 93 |
Year four | 81 | 137 |
Year five | 112 | 67 |
Year six and prior | 57 | 0 |
Total | 1,805 | 1,413 |
Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year one | 515 | 578 |
Year two | 533 | 527 |
Year three | 465 | 90 |
Year four | 78 | 119 |
Year five | 99 | 65 |
Year six and prior | 53 | 0 |
Total | 1,743 | 1,379 |
Nonperforming | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year one | 2 | 5 |
Year two | 22 | 6 |
Year three | 18 | 3 |
Year four | 3 | 18 |
Year five | 13 | 2 |
Year six and prior | 4 | 0 |
Total | $ 62 | $ 34 |
Investments - Changes in Allo_2
Investments - Changes in Allowance for Credit Losses on Mortgage Loans on Real Estate (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance as of beginning-of-year | $ 98,000,000 | ||
Balance as of end-of-year | 114,000,000 | $ 98,000,000 | |
Commercial | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance as of beginning-of-year | 83,000,000 | ||
Balance as of end-of-year | 86,000,000 | 83,000,000 | |
Residential | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance as of beginning-of-year | 15,000,000 | ||
Balance as of end-of-year | 28,000,000 | 15,000,000 | |
Mortgage loans on real estate | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance as of beginning-of-year | 98,000,000 | 95,000,000 | $ 203,000,000 |
Additions (reductions) from provision for credit loss expense | 16,000,000 | 3,000,000 | (108,000,000) |
Additions from purchases of PCD mortgage loans on real estate | 0 | 0 | 0 |
Balance as of end-of-year | 114,000,000 | 98,000,000 | 95,000,000 |
Credit loss expense (reversal) | (1,000,000) | 0 | 3,000,000 |
Accrued interest receivable excluded from credit losses | 67,000,000 | 51,000,000 | 48,000,000 |
Mortgage loans on real estate | Commercial | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance as of beginning-of-year | 83,000,000 | 78,000,000 | 186,000,000 |
Additions (reductions) from provision for credit loss expense | 3,000,000 | 5,000,000 | (108,000,000) |
Additions from purchases of PCD mortgage loans on real estate | 0 | 0 | 0 |
Balance as of end-of-year | 86,000,000 | 83,000,000 | 78,000,000 |
Mortgage loans on real estate | Residential | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance as of beginning-of-year | 15,000,000 | 17,000,000 | 17,000,000 |
Additions (reductions) from provision for credit loss expense | 13,000,000 | (2,000,000) | 0 |
Additions from purchases of PCD mortgage loans on real estate | 0 | 0 | 0 |
Balance as of end-of-year | $ 28,000,000 | $ 15,000,000 | $ 17,000,000 |
Investments - Net Investment In
Investments - Net Investment Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Net Investment Income [Line Items] | |||
Other investments | $ (38) | $ 75 | $ 60 |
Investment income | 6,323 | 5,676 | 6,144 |
Investment expense | (611) | (402) | (305) |
Net investment income | 5,712 | 5,274 | 5,839 |
Fixed maturity AFS securities, at fair value | |||
Net Investment Income [Line Items] | |||
Gross investment income | 4,961 | 4,408 | 4,242 |
Trading securities | |||
Net Investment Income [Line Items] | |||
Gross investment income | 158 | 179 | 165 |
Equity securities | |||
Net Investment Income [Line Items] | |||
Gross investment income | 13 | 11 | 3 |
Mortgage loans on real estate | |||
Net Investment Income [Line Items] | |||
Gross investment income | 752 | 687 | 677 |
Policy loans | |||
Net Investment Income [Line Items] | |||
Gross investment income | 102 | 100 | 115 |
Cash and invested cash | |||
Net Investment Income [Line Items] | |||
Gross investment income | 118 | 12 | 0 |
Commercial mortgage loan prepayment and bond makewhole premiums | |||
Net Investment Income [Line Items] | |||
Gross investment income | 10 | 100 | 195 |
Alternative investments | |||
Net Investment Income [Line Items] | |||
Gross investment income | 244 | 96 | 677 |
Consent fees | |||
Net Investment Income [Line Items] | |||
Gross investment income | $ 3 | $ 8 | $ 10 |
Investments - Credit Loss Expen
Investments - Credit Loss Expense Incurred (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Securities, Available-for-Sale, Allowance for Credit Loss [Line Items] | ||||
Total intent to sell impairments | $ (4,213) | $ 0 | $ 0 | |
Total credit loss benefit (expense) | (25) | (7) | (9) | |
Gross gains | 627 | 37 | 660 | |
Realized Gain (Loss) | ||||
Debt Securities, Available-for-Sale, Allowance for Credit Loss [Line Items] | ||||
Total credit loss benefit (expense) | (21) | (14) | (11) | |
Fortitude Re | ||||
Debt Securities, Available-for-Sale, Allowance for Credit Loss [Line Items] | ||||
Gross gains | $ 295 | |||
Corporate bonds | ||||
Debt Securities, Available-for-Sale, Allowance for Credit Loss [Line Items] | ||||
Total intent to sell impairments | (3,805) | 0 | 0 | |
Total credit loss benefit (expense) | (24) | (4) | (8) | |
Corporate bonds | Realized Gain (Loss) | ||||
Debt Securities, Available-for-Sale, Allowance for Credit Loss [Line Items] | ||||
Total credit loss benefit (expense) | (23) | (4) | (10) | |
State and municipal bonds | ||||
Debt Securities, Available-for-Sale, Allowance for Credit Loss [Line Items] | ||||
Total intent to sell impairments | (214) | 0 | 0 | |
RMBS | ||||
Debt Securities, Available-for-Sale, Allowance for Credit Loss [Line Items] | ||||
Total intent to sell impairments | (74) | 0 | 0 | |
Total credit loss benefit (expense) | (1) | (3) | 0 | |
RMBS | Realized Gain (Loss) | ||||
Debt Securities, Available-for-Sale, Allowance for Credit Loss [Line Items] | ||||
Total credit loss benefit (expense) | 1 | (6) | 0 | |
CMBS | ||||
Debt Securities, Available-for-Sale, Allowance for Credit Loss [Line Items] | ||||
Total intent to sell impairments | (60) | 0 | 0 | |
ABS | ||||
Debt Securities, Available-for-Sale, Allowance for Credit Loss [Line Items] | ||||
Total intent to sell impairments | (57) | 0 | 0 | |
ABS | Realized Gain (Loss) | ||||
Debt Securities, Available-for-Sale, Allowance for Credit Loss [Line Items] | ||||
Total credit loss benefit (expense) | 1 | (4) | 0 | |
Hybrid and redeemable preferred securities | ||||
Debt Securities, Available-for-Sale, Allowance for Credit Loss [Line Items] | ||||
Total intent to sell impairments | (3) | 0 | 0 | |
Hybrid and redeemable preferred securities | Realized Gain (Loss) | ||||
Debt Securities, Available-for-Sale, Allowance for Credit Loss [Line Items] | ||||
Total credit loss benefit (expense) | $ 0 | $ 0 | $ (1) |
Investments - Payables for Coll
Investments - Payables for Collateral on Investments (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Carrying Value | ||
Collateral payable for derivative investments | $ 5,127 | $ 3,210 |
Securities pledged under securities lending agreements | 205 | 298 |
Investments pledged for FHLBI | 2,650 | 3,130 |
Total payables for collateral on investments | 7,982 | 6,638 |
Fair Value | ||
Collateral payable for derivative investments | 5,127 | 3,210 |
Securities pledged under securities lending agreements | 197 | 287 |
Investments pledged for Federal Home Loan Bank of Indianapolis('FHLBI') | 3,603 | 3,925 |
Total payables for collateral on investments | $ 8,927 | $ 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% | |
Minimum | ||
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% | |
Maximum | ||
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% |
Investments - Schedule of Incre
Investments - Schedule of Increase (Decrease) in Payables for Collateral on Investments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Investments [Abstract] | |||
Collateral payable for derivative investments | $ 1,917 | $ (2,355) | $ 2,595 |
Securities pledged under securities lending agreements | (93) | 57 | 126 |
Investments pledged for FHLBI | (480) | 0 | 0 |
Total increase (decrease) in payables for collateral on investments | $ 1,344 | $ (2,298) | $ 2,721 |
Investments - Schedule of Secur
Investments - Schedule of Securities Pledged by Contractual Maturity (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities pledged under securities lending agreements | $ 205 | $ 298 |
Total gross secured borrowings | 205 | 298 |
Corporate bonds | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities pledged under securities lending agreements | 202 | 288 |
Foreign government bonds | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities pledged under securities lending agreements | 2 | |
Equity securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities pledged under securities lending agreements | 3 | 8 |
Overnight and Continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total gross secured borrowings | 205 | 298 |
Overnight and Continuous | Corporate bonds | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities pledged under securities lending agreements | 202 | 288 |
Overnight and Continuous | Foreign government bonds | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities pledged under securities lending agreements | 2 | |
Overnight and Continuous | Equity securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities pledged under securities lending agreements | 3 | 8 |
Up to 30 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total gross secured borrowings | 0 | 0 |
Up to 30 Days | Corporate bonds | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities pledged under securities lending agreements | 0 | 0 |
Up to 30 Days | Foreign government bonds | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities pledged under securities lending agreements | 0 | |
Up to 30 Days | Equity securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities pledged under securities lending agreements | 0 | 0 |
30-90 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total gross secured borrowings | 0 | 0 |
30-90 Days | Corporate bonds | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities pledged under securities lending agreements | 0 | 0 |
30-90 Days | Foreign government bonds | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities pledged under securities lending agreements | 0 | |
30-90 Days | Equity securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities pledged under securities lending agreements | 0 | 0 |
Greater than 90 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total gross secured borrowings | 0 | 0 |
Greater than 90 Days | Corporate bonds | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities pledged under securities lending agreements | 0 | 0 |
Greater than 90 Days | Foreign government bonds | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities pledged under securities lending agreements | 0 | |
Greater than 90 Days | Equity securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities pledged under securities lending agreements | $ 0 | $ 0 |
Variable Interest Entities (Det
Variable Interest Entities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Variable Interest Entity [Line Items] | ||
Long-term senior note issued in exchange for corporate bond available for sale security | $ 275 | |
Surplus notes | 0 | |
Maximum exposure to loss related to unconsolidated VIE's | 0 | |
Other investments | 4,757 | $ 3,577 |
Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Other investments | $ 4,000 | $ 3,000 |
Derivative Instruments - Outsta
Derivative Instruments - Outstanding Derivative Instruments With Off-Balance-Sheet Risks (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Outstanding derivative instruments with off-balance-sheet risks | ||
Notional Amounts | $ 322,099 | $ 255,322 |
Gross amount of recognized assets | 12,965 | 7,952 |
Gross amount of recognized liabilities | 14,454 | 8,052 |
Cash flow hedges | Qualifying Hedges | ||
Outstanding derivative instruments with off-balance-sheet risks | ||
Notional Amounts | 5,147 | 5,760 |
Gross amount of recognized assets | 434 | 647 |
Gross amount of recognized liabilities | 125 | 250 |
Fair value hedges | Qualifying Hedges | ||
Outstanding derivative instruments with off-balance-sheet risks | ||
Notional Amounts | 475 | 524 |
Gross amount of recognized assets | 1 | 2 |
Gross amount of recognized liabilities | 40 | 44 |
Interest rate contracts | ||
Outstanding derivative instruments with off-balance-sheet risks | ||
Notional Amounts | 91,764 | |
Interest rate contracts | Non-Qualifying Hedges | ||
Outstanding derivative instruments with off-balance-sheet risks | ||
Notional Amounts | 90,829 | 105,977 |
Gross amount of recognized assets | 636 | 709 |
Gross amount of recognized liabilities | 979 | 935 |
Interest rate contracts | Cash flow hedges | Qualifying Hedges | ||
Outstanding derivative instruments with off-balance-sheet risks | ||
Notional Amounts | 485 | 1,377 |
Gross amount of recognized assets | 11 | 4 |
Gross amount of recognized liabilities | 47 | 232 |
Interest rate contracts | Fair value hedges | Qualifying Hedges | ||
Outstanding derivative instruments with off-balance-sheet risks | ||
Notional Amounts | 450 | 524 |
Gross amount of recognized assets | 1 | 2 |
Gross amount of recognized liabilities | 39 | 44 |
Foreign currency contracts | ||
Outstanding derivative instruments with off-balance-sheet risks | ||
Notional Amounts | 4,993 | |
Foreign currency contracts | Non-Qualifying Hedges | ||
Outstanding derivative instruments with off-balance-sheet risks | ||
Notional Amounts | 306 | 395 |
Gross amount of recognized assets | 11 | 27 |
Gross amount of recognized liabilities | 6 | 2 |
Foreign currency contracts | Cash flow hedges | Qualifying Hedges | ||
Outstanding derivative instruments with off-balance-sheet risks | ||
Notional Amounts | 4,662 | 4,383 |
Gross amount of recognized assets | 423 | 643 |
Gross amount of recognized liabilities | 78 | 18 |
Foreign currency contracts | Fair value hedges | Qualifying Hedges | ||
Outstanding derivative instruments with off-balance-sheet risks | ||
Notional Amounts | 25 | 0 |
Gross amount of recognized assets | 0 | 0 |
Gross amount of recognized liabilities | 1 | 0 |
Equity market contracts | ||
Outstanding derivative instruments with off-balance-sheet risks | ||
Notional Amounts | 225,251 | |
Equity market contracts | Non-Qualifying Hedges | ||
Outstanding derivative instruments with off-balance-sheet risks | ||
Notional Amounts | 225,251 | 142,653 |
Gross amount of recognized assets | 10,244 | 5,135 |
Gross amount of recognized liabilities | 4,227 | 2,035 |
Commodity contracts | Non-Qualifying Hedges | ||
Outstanding derivative instruments with off-balance-sheet risks | ||
Notional Amounts | 0 | 13 |
Gross amount of recognized assets | 0 | 14 |
Gross amount of recognized liabilities | 0 | 3 |
Credit contracts | ||
Outstanding derivative instruments with off-balance-sheet risks | ||
Notional Amounts | 91 | |
Credit contracts | Non-Qualifying Hedges | ||
Outstanding derivative instruments with off-balance-sheet risks | ||
Notional Amounts | 91 | 0 |
Gross amount of recognized assets | 0 | 0 |
Gross amount of recognized liabilities | 0 | 0 |
LPR ceded derivative | Non-Qualifying Hedges | ||
Outstanding derivative instruments with off-balance-sheet risks | ||
Notional Amounts | 0 | 0 |
Gross amount of recognized assets | 206 | 212 |
Gross amount of recognized liabilities | 0 | 0 |
Reinsurance-related | Non-Qualifying Hedges | ||
Outstanding derivative instruments with off-balance-sheet risks | ||
Notional Amounts | 0 | 0 |
Gross amount of recognized assets | 493 | 681 |
Gross amount of recognized liabilities | 0 | 0 |
Indexed annuity ceded embedded derivatives | Non-Qualifying Hedges | ||
Outstanding derivative instruments with off-balance-sheet risks | ||
Notional Amounts | 0 | 0 |
Gross amount of recognized assets | 940 | 525 |
Gross amount of recognized liabilities | $ 9,077 | $ 4,783 |
Derivative Instruments - Maturi
Derivative Instruments - Maturity of the Notional Amounts of Derivative Financial Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Maturity of the notional amounts of derivative financial instruments | ||
Less Than 1 Year | $ 196,872 | |
1 – 5 Years | 63,597 | |
6 - 10 Years | 30,986 | |
11 - 30 Years | 23,940 | |
Over 30 Years | 6,704 | |
Total | 322,099 | $ 255,322 |
Interest rate contracts | ||
Maturity of the notional amounts of derivative financial instruments | ||
Less Than 1 Year | 22,166 | |
1 – 5 Years | 25,350 | |
6 - 10 Years | 22,349 | |
11 - 30 Years | 21,899 | |
Over 30 Years | 0 | |
Total | 91,764 | |
Foreign currency contracts | ||
Maturity of the notional amounts of derivative financial instruments | ||
Less Than 1 Year | 276 | |
1 – 5 Years | 956 | |
6 - 10 Years | 1,687 | |
11 - 30 Years | 2,032 | |
Over 30 Years | 42 | |
Total | 4,993 | |
Equity market contracts | ||
Maturity of the notional amounts of derivative financial instruments | ||
Less Than 1 Year | 174,430 | |
1 – 5 Years | 37,200 | |
6 - 10 Years | 6,950 | |
11 - 30 Years | 9 | |
Over 30 Years | 6,662 | |
Total | 225,251 | |
Credit contracts | ||
Maturity of the notional amounts of derivative financial instruments | ||
Less Than 1 Year | 0 | |
1 – 5 Years | 91 | |
6 - 10 Years | 0 | |
11 - 30 Years | 0 | |
Over 30 Years | 0 | |
Total | $ 91 |
Derivative Instruments - Cumula
Derivative Instruments - Cumulative Basis Adjustments for Fair Value Hedges (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Amortized Cost of the Hedged Assets / (Liabilities) | $ 534 | $ 587 |
Cumulative Fair Value Hedging Adjustment Included in the Amortized Cost of the Hedged Assets / (Liabilities) | $ 39 | $ 44 |
Derivative Instruments - Change
Derivative Instruments - Change in Our Unrealized Gain on Derivative Instruments in AOCI (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Change in our unrealized gain on derivative instruments in accumulated OCI | |||
Balance as of beginning-of-year | $ 8,604 | $ 25,934 | |
Balance as of end-of-year | 10,507 | 8,604 | $ 25,934 |
Cumulative effect from adoption of new accounting standards | |||
Change in our unrealized gain on derivative instruments in accumulated OCI | |||
Balance as of beginning-of-year | 4,822 | ||
Unrealized Gain (Loss) on Derivative Instruments | |||
Change in our unrealized gain on derivative instruments in accumulated OCI | |||
Balance as of beginning-of-year | 301 | 258 | 42 |
Income tax benefit (expense) | 2 | (34) | (63) |
Reclassification adjustment for gains (losses) included in net income (loss) | (60) | (103) | (49) |
Income tax benefit (expense) | (13) | (22) | (10) |
Balance as of end-of-year | 249 | 301 | 258 |
Unrealized Gain (Loss) on Derivative Instruments | Interest rate contracts | |||
Change in our unrealized gain on derivative instruments in accumulated OCI | |||
Changes arising during the year | 212 | (336) | 11 |
Unrealized Gain (Loss) on Derivative Instruments | Interest rate contracts | Net Investment Income | |||
Change in our unrealized gain on derivative instruments in accumulated OCI | |||
Reclassification adjustment for gains (losses) included in net income (loss) | 1 | (2) | (3) |
Unrealized Gain (Loss) on Derivative Instruments | Foreign currency contracts | |||
Change in our unrealized gain on derivative instruments in accumulated OCI | |||
Changes arising during the year | (50) | 182 | 130 |
Unrealized Gain (Loss) on Derivative Instruments | Foreign currency contracts | Net Investment Income | |||
Change in our unrealized gain on derivative instruments in accumulated OCI | |||
Reclassification adjustment for gains (losses) included in net income (loss) | (54) | (62) | (48) |
Unrealized Gain (Loss) on Derivative Instruments | Foreign currency contracts | Realized Gain (Loss) | |||
Change in our unrealized gain on derivative instruments in accumulated OCI | |||
Reclassification adjustment for gains (losses) included in net income (loss) | (7) | (39) | 2 |
Unrealized Gain (Loss) on Derivative Instruments | Cash flow hedges | |||
Change in our unrealized gain on derivative instruments in accumulated OCI | |||
Changes arising during the year | $ (169) | $ 312 | 152 |
Unrealized Gain (Loss) on Derivative Instruments | Cumulative effect from adoption of new accounting standards | |||
Change in our unrealized gain on derivative instruments in accumulated OCI | |||
Balance as of beginning-of-year | $ 25 |
Derivative Instruments - Effect
Derivative Instruments - Effects of Qualifying and Non-Qualifying Hedges (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Realized gain (loss) | $ (4,934) | $ 418 | $ 859 |
Net investment income | 5,712 | 5,274 | 5,839 |
Interest and debt expense | 190 | 137 | 114 |
Qualifying Hedges | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Realized gain (loss) | (4,934) | 418 | 859 |
Net investment income | 5,712 | 5,274 | 5,839 |
Interest and debt expense | 5,044 | 8,203 | 8,027 |
Realized Gain (Loss) | Qualifying Hedges | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Interest rate contracts, amount of gain or (loss) reclassified from AOCI into income | 0 | 0 | 0 |
Foreign currency contracts, amount of gain or (loss) reclassified from AOCI into income | 7 | 39 | (2) |
Realized Gain (Loss) | Interest rate contracts | Non-Qualifying Hedges | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Non-Qualifying Hedges | (161) | (2,113) | (957) |
Realized Gain (Loss) | Foreign currency contracts | Non-Qualifying Hedges | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Non-Qualifying Hedges | (2) | 2 | (1) |
Realized Gain (Loss) | Equity market contracts | Non-Qualifying Hedges | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Non-Qualifying Hedges | 1,387 | (2,075) | 3,355 |
Realized Gain (Loss) | Commodity contracts | Non-Qualifying Hedges | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Non-Qualifying Hedges | 8 | 11 | |
Realized Gain (Loss) | Credit contracts | Non-Qualifying Hedges | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Non-Qualifying Hedges | (4) | (4) | (1) |
Realized Gain (Loss) | LPR ceded derivative | Non-Qualifying Hedges | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Non-Qualifying Hedges | 0 | 0 | |
Realized Gain (Loss) | Reinsurance-related | Non-Qualifying Hedges | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Non-Qualifying Hedges | (188) | 1,259 | 280 |
Realized Gain (Loss) | RILA, fixed indexed annuity and IUL contracts | Non-Qualifying Hedges | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Non-Qualifying Hedges | (3,187) | 1,760 | (2,622) |
Net Investment Income | Qualifying Hedges | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Hedged items | (5) | (167) | (60) |
Derivatives designated as hedging instruments | 5 | 167 | 60 |
Interest rate contracts, amount of gain or (loss) reclassified from AOCI into income | (1) | 2 | 3 |
Foreign currency contracts, amount of gain or (loss) reclassified from AOCI into income | 54 | 62 | 48 |
Net Investment Income | Interest rate contracts | Non-Qualifying Hedges | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Non-Qualifying Hedges | 0 | 0 | 0 |
Net Investment Income | Foreign currency contracts | Non-Qualifying Hedges | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Non-Qualifying Hedges | 0 | 0 | 0 |
Net Investment Income | Equity market contracts | Non-Qualifying Hedges | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Non-Qualifying Hedges | 0 | 0 | 0 |
Net Investment Income | Commodity contracts | Non-Qualifying Hedges | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Non-Qualifying Hedges | 0 | 0 | |
Net Investment Income | Credit contracts | Non-Qualifying Hedges | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Non-Qualifying Hedges | 0 | 0 | 0 |
Net Investment Income | LPR ceded derivative | Non-Qualifying Hedges | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Non-Qualifying Hedges | 0 | 0 | |
Net Investment Income | Reinsurance-related | Non-Qualifying Hedges | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Non-Qualifying Hedges | 0 | 0 | 0 |
Net Investment Income | RILA, fixed indexed annuity and IUL contracts | Non-Qualifying Hedges | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Non-Qualifying Hedges | 0 | 0 | 0 |
Interest and Debt Expense | Qualifying Hedges | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Hedged items | 0 | 0 | 0 |
Derivatives designated as hedging instruments | 0 | ||
Interest rate contracts, amount of gain or (loss) reclassified from AOCI into income | 0 | 0 | 0 |
Foreign currency contracts, amount of gain or (loss) reclassified from AOCI into income | 0 | 0 | 0 |
Interest and Debt Expense | Interest rate contracts | Non-Qualifying Hedges | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Non-Qualifying Hedges | 0 | 0 | 0 |
Interest and Debt Expense | Foreign currency contracts | Non-Qualifying Hedges | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Non-Qualifying Hedges | 0 | 0 | 0 |
Interest and Debt Expense | Equity market contracts | Non-Qualifying Hedges | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Non-Qualifying Hedges | 0 | 0 | 0 |
Interest and Debt Expense | Commodity contracts | Non-Qualifying Hedges | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Non-Qualifying Hedges | 0 | 0 | |
Interest and Debt Expense | Credit contracts | Non-Qualifying Hedges | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Non-Qualifying Hedges | 0 | 0 | 0 |
Interest and Debt Expense | LPR ceded derivative | Non-Qualifying Hedges | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Non-Qualifying Hedges | 6 | 106 | |
Interest and Debt Expense | Reinsurance-related | Non-Qualifying Hedges | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Non-Qualifying Hedges | 0 | 0 | 0 |
Interest and Debt Expense | RILA, fixed indexed annuity and IUL contracts | Non-Qualifying Hedges | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Non-Qualifying Hedges | $ 0 | $ 0 | $ 0 |
Derivative Instruments - Narrat
Derivative Instruments - Narrative (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Cash flow hedge gain (loss) to be reclassified within 12 months | $ 56,000,000 | |
Non-performance risk adjustment | 0 | |
Non-performance risk adjustment | 0 | |
Exposure associated with collateralization events | $ 0 | $ 0 |
Derivative Instruments - Schedu
Derivative Instruments - Schedule of Collateral Amounts With Rights to Reclaim or Obligation to Return Cash (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Credit Derivatives [Line Items] | ||
Collateral Posted by Counter- Party (Held by LNL) | $ 5,107 | $ 3,200 |
Collateral Posted by LNL (Held by Counter- Party) | (188) | (157) |
AA- | ||
Credit Derivatives [Line Items] | ||
Collateral Posted by Counter- Party (Held by LNL) | 2,330 | 383 |
Collateral Posted by LNL (Held by Counter- Party) | (63) | (6) |
A+ | ||
Credit Derivatives [Line Items] | ||
Collateral Posted by Counter- Party (Held by LNL) | 2,422 | 1,718 |
Collateral Posted by LNL (Held by Counter- Party) | (125) | (151) |
A | ||
Credit Derivatives [Line Items] | ||
Collateral Posted by Counter- Party (Held by LNL) | 82 | 1,099 |
Collateral Posted by LNL (Held by Counter- Party) | 0 | 0 |
A- | ||
Credit Derivatives [Line Items] | ||
Collateral Posted by Counter- Party (Held by LNL) | 273 | 0 |
Collateral Posted by LNL (Held by Counter- Party) | $ 0 | $ 0 |
Derivative Instruments - Sche_2
Derivative Instruments - Schedule of Offsetting Assets and Liabilities (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Financial Assets | ||
Gross amount of recognized assets | $ 12,147,000,000 | $ 7,689,000,000 |
Gross amounts offset | (4,409,000,000) | (2,964,000,000) |
Net amount of assets | 7,738,000,000 | 4,725,000,000 |
Cash collateral | (5,107,000,000) | (3,200,000,000) |
Non-cash collateral | (1,198,000,000) | (319,000,000) |
Net amount | 1,433,000,000 | 1,206,000,000 |
Financial Liabilities | ||
Gross amount of recognized liabilities | 10,045,000,000 | 5,087,000,000 |
Gross amounts offset | (612,000,000) | (50,000,000) |
Net amount of liabilities | 9,433,000,000 | 5,037,000,000 |
Cash collateral | (188,000,000) | (157,000,000) |
Non-cash collateral | (168,000,000) | (46,000,000) |
Net amount | 9,077,000,000 | 4,834,000,000 |
Excess non-cash collateral received | 1,300,000,000 | 1,100,000,000 |
Excess non-cash collateral pledged | 81,000,000 | 0 |
Derivative Instruments | ||
Financial Assets | ||
Gross amount of recognized assets | 10,714,000,000 | 6,483,000,000 |
Gross amounts offset | (4,409,000,000) | (2,964,000,000) |
Net amount of assets | 6,305,000,000 | 3,519,000,000 |
Cash collateral | (5,107,000,000) | (3,200,000,000) |
Non-cash collateral | (1,198,000,000) | (319,000,000) |
Net amount | 0 | 0 |
Financial Liabilities | ||
Gross amount of recognized liabilities | 968,000,000 | 304,000,000 |
Gross amounts offset | (612,000,000) | (50,000,000) |
Net amount of liabilities | 356,000,000 | 254,000,000 |
Cash collateral | (188,000,000) | (157,000,000) |
Non-cash collateral | (168,000,000) | (46,000,000) |
Net amount | 0 | 51,000,000 |
Embedded Derivative Instruments | ||
Financial Assets | ||
Gross amount of recognized assets | 1,433,000,000 | 1,206,000,000 |
Gross amounts offset | 0 | 0 |
Net amount of assets | 1,433,000,000 | 1,206,000,000 |
Cash collateral | 0 | 0 |
Non-cash collateral | 0 | 0 |
Net amount | 1,433,000,000 | 1,206,000,000 |
Financial Liabilities | ||
Gross amount of recognized liabilities | 9,077,000,000 | 4,783,000,000 |
Gross amounts offset | 0 | 0 |
Net amount of liabilities | 9,077,000,000 | 4,783,000,000 |
Cash collateral | 0 | 0 |
Non-cash collateral | 0 | 0 |
Net amount | $ 9,077,000,000 | $ 4,783,000,000 |
DAC, VOBA, DSI, and DFEL - Reco
DAC, VOBA, DSI, and DFEL - Reconciliation of DAC, VOBA and DSI (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2020 |
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||
DAC, VOBA and DSI | $ 12,418 | $ 12,263 | $ 12,162 |
Traditional Life | |||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||
DAC, VOBA and DSI | 1,374 | 1,336 | |
UL and Other | |||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||
DAC, VOBA and DSI | 6,139 | 6,002 | |
Group Protection | |||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||
DAC, VOBA and DSI | 154 | 141 | |
Retirement Plan Services | |||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||
DAC, VOBA and DSI | 270 | 258 | |
Variable Annuities | |||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||
DAC, VOBA and DSI | 4,025 | 4,047 | |
Fixed Annuities | |||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||
DAC, VOBA and DSI | $ 456 | $ 479 |
DAC, VOBA, DSI, and DFEL - Re_2
DAC, VOBA, DSI, and DFEL - Reconciliation of DFEL (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred Policy Acquisition Cost [Line Items] | ||||
DFEL | $ 5,923 | $ 5,115 | $ 3,586 | |
Other Operations | ||||
Deferred Policy Acquisition Cost [Line Items] | ||||
DFEL | 44 | 39 | ||
Ceded DFEL | 44 | 39 | ||
UL and Other | ||||
Deferred Policy Acquisition Cost [Line Items] | ||||
DFEL | 5,579 | 4,766 | $ 3,934 | 3,262 |
Ceded DFEL | 2,252 | 31 | ||
Variable Annuities | ||||
Deferred Policy Acquisition Cost [Line Items] | ||||
DFEL | 300 | 310 | $ 318 | $ 324 |
Ceded DFEL | $ 0 | $ 0 |
DAC, VOBA, DSI, and DFEL - DAC
DAC, VOBA, DSI, and DFEL - DAC (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||
Balance as of beginning-of-year | $ 11,000 | ||
Amortization | $ (992) | $ (969) | (969) |
Traditional Life | |||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||
Balance as of beginning-of-year | 1,286 | 1,146 | 1,041 |
Deferrals | 188 | 266 | |
Amortization | (142) | (126) | |
Balance as of end-of-year | 1,332 | 1,286 | 1,146 |
UL and Other | |||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||
Balance as of beginning-of-year | 5,518 | 5,269 | 5,328 |
Deferrals | 482 | 537 | |
Amortization | (291) | (288) | |
Balance as of end-of-year | 5,709 | 5,518 | 5,269 |
Group Protection | |||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||
Balance as of beginning-of-year | 141 | 140 | 187 |
Deferrals | 113 | 98 | |
Amortization | (100) | (97) | |
Balance as of end-of-year | 154 | 141 | 140 |
Retirement Plan Services | |||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||
Balance as of beginning-of-year | 241 | 239 | 238 |
Deferrals | 21 | 21 | |
Amortization | (18) | (19) | |
Balance as of end-of-year | 244 | 241 | 239 |
Variable Annuities | |||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||
Balance as of beginning-of-year | 3,880 | 3,860 | 3,727 |
Deferrals | 361 | 390 | |
Amortization | (373) | (370) | |
Balance as of end-of-year | 3,868 | 3,880 | 3,860 |
Fixed Annuities | |||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||
Balance as of beginning-of-year | 439 | 448 | 479 |
Deferrals | 50 | 60 | |
Amortization | (68) | (69) | |
Balance as of end-of-year | $ 421 | $ 439 | $ 448 |
DAC, VOBA, DSI, and DFEL - VOBA
DAC, VOBA, DSI, and DFEL - VOBA (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Movement in Present Value of Future Insurance Profits [Roll Forward] | |||
Balance as of beginning-of-year | $ 887 | ||
Amortization | $ (53) | $ (59) | (75) |
Traditional Life | |||
Movement in Present Value of Future Insurance Profits [Roll Forward] | |||
Balance as of beginning-of-year | 50 | 59 | 67 |
Business acquired (sold) through reinsurance | 0 | ||
Deferrals | 0 | 0 | |
Amortization | (8) | (9) | |
Balance as of end-of-year | 42 | 50 | 59 |
UL and Other | |||
Movement in Present Value of Future Insurance Profits [Roll Forward] | |||
Balance as of beginning-of-year | 454 | 499 | 797 |
Business acquired (sold) through reinsurance | (11) | ||
Deferrals | 2 | 2 | |
Amortization | (43) | (47) | |
Balance as of end-of-year | 402 | 454 | 499 |
Fixed Annuities | |||
Movement in Present Value of Future Insurance Profits [Roll Forward] | |||
Balance as of beginning-of-year | 17 | 20 | 23 |
Business acquired (sold) through reinsurance | 0 | ||
Deferrals | 0 | 0 | |
Amortization | (2) | (3) | |
Balance as of end-of-year | $ 15 | $ 17 | $ 20 |
DAC, VOBA, DSI, and DFEL - Esti
DAC, VOBA, DSI, and DFEL - Estimated Future Amortization of VOBA (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Present Value of Future Insurance Profits, Expected Amortization, Next Five Years [Abstract] | |
2024 | $ 39 |
2025 | 37 |
2026 | 34 |
2027 | 29 |
2028 | $ 25 |
DAC, VOBA, DSI, and DFEL - DSI
DAC, VOBA, DSI, and DFEL - DSI (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Movement in Deferred Sales Inducements [Roll Forward] | |||
Balance as of beginning-of-year | $ 275 | ||
Amortization | $ (21) | $ (23) | (27) |
UL and Other | |||
Movement in Deferred Sales Inducements [Roll Forward] | |||
Balance as of beginning-of-year | 30 | 31 | 35 |
Deferrals | 0 | 1 | |
Amortization | (2) | (2) | |
Balance as of end-of-year | 28 | 30 | 31 |
Retirement Plan Services | |||
Movement in Deferred Sales Inducements [Roll Forward] | |||
Balance as of beginning-of-year | 17 | 14 | 14 |
Deferrals | 10 | 4 | |
Amortization | (1) | (1) | |
Balance as of end-of-year | 26 | 17 | 14 |
Variable Annuities | |||
Movement in Deferred Sales Inducements [Roll Forward] | |||
Balance as of beginning-of-year | 167 | 181 | 196 |
Deferrals | 5 | 2 | |
Amortization | (15) | (16) | |
Balance as of end-of-year | 157 | 167 | 181 |
Fixed Annuities | |||
Movement in Deferred Sales Inducements [Roll Forward] | |||
Balance as of beginning-of-year | 23 | 27 | 30 |
Deferrals | 0 | 0 | |
Amortization | (3) | (4) | |
Balance as of end-of-year | $ 20 | $ 23 | $ 27 |
DAC, VOBA, DSI, and DFEL - DFEL
DAC, VOBA, DSI, and DFEL - DFEL (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Changes in DFEL [Roll Forward] | |||
Balance as of beginning-of-year | $ 5,115 | $ 3,586 | |
Amortization | (290) | $ (259) | (220) |
Balance as of beginning-of-year | 5,923 | 5,115 | |
UL and Other | |||
Changes in DFEL [Roll Forward] | |||
Balance as of beginning-of-year | 4,766 | 3,934 | 3,262 |
Deferrals | 1,074 | 1,061 | |
Amortization | (261) | (229) | |
Balance as of beginning-of-year | 5,579 | 4,766 | 3,934 |
Less: ceded DFEL | 2,252 | 31 | |
Balance as of end-of-year, net of reinsurance | 3,327 | 4,735 | |
Variable Annuities | |||
Changes in DFEL [Roll Forward] | |||
Balance as of beginning-of-year | 310 | 318 | 324 |
Deferrals | 19 | 22 | |
Amortization | (29) | (30) | |
Balance as of beginning-of-year | 300 | 310 | $ 318 |
Less: ceded DFEL | 0 | 0 | |
Balance as of end-of-year, net of reinsurance | $ 300 | $ 310 |
Reinsurance - Reinsurance Amoun
Reinsurance - Reinsurance Amounts Recorded on Consolidated Statements of Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Reinsurance Disclosures [Abstract] | |||
Direct insurance premiums and fee income | $ 13,661 | $ 13,479 | $ 13,277 |
Reinsurance assumed | 91 | 102 | 97 |
Reinsurance ceded | (5,168) | (2,374) | (2,249) |
Total insurance premiums and fee income | 8,584 | 11,207 | 11,125 |
Direct insurance benefits | 10,178 | 10,266 | 10,491 |
Reinsurance ceded | (5,150) | (2,063) | (2,464) |
Total benefits | 5,028 | 8,203 | 8,027 |
Direct market risk benefit (gain) loss | (2,309) | (3,517) | (4,011) |
Reinsurance ceded | 1,174 | 3,814 | 2,457 |
Total market risk benefit (gain) loss | (1,135) | 296 | (1,554) |
Direct policyholder liability remeasurement (gain) loss | (234) | 3,284 | (164) |
Reinsurance ceded | 67 | (839) | 45 |
Total policyholder liability remeasurement (gain) loss | $ (167) | $ 2,445 | $ (119) |
Reinsurance - Narrative (Detail
Reinsurance - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Ceded Credit Risk [Line Items] | |||
Maximum retention per single insured life on fixed and VUL insurance contracts | $ 20 | ||
Percent of mortality risk reinsured on newly issued non-term life insurance contracts | 27% | ||
Other investments | $ 4,757 | $ 3,577 | |
Deposit assets, net of allowance for credit losses | 21,056 | 11,628 | |
Realized gain (loss) | (4,934) | 418 | $ 859 |
Reinsurance ACL and deposit assets | 76 | 315 | |
LNBAR | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance recoverables, case basis | 15,600 | 2,200 | |
Reinsurance recoverables | 13,200 | ||
Reinsurance recoverables on unpaid losses | 4,200 | ||
Reinsurance recoverable for unpaid claims and claims adjustments | 14 | ||
Other investments | 759 | ||
Investments and cash | 112 | ||
Trust funded to support reinsurance receivable | 13,000 | 2,200 | |
Fortitude Re | Fixed Annuities | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance recoverables | 10,500 | ||
Reinsurance recoverables on unpaid losses | 2,700 | ||
Reinsurance recoverable for unpaid claims and claims adjustments | 11 | ||
Deposit assets, net of allowance for credit losses | 4,200 | ||
Resolution Life | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance recoverables, case basis | 5,000 | 5,000 | |
Resolution Life | Over-Collateralization | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance recoverables | 3,800 | 4,100 | |
Realized gain (loss) | 635 | ||
Protective | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance recoverables | 9,100 | 9,600 | |
Protective | Over-Collateralization | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance recoverables | 10,500 | 11,500 | |
Athene Holding Ltd. | |||
Ceded Credit Risk [Line Items] | |||
Other investments | 41 | 42 | |
Deposit assets, net of allowance for credit losses | 2,700 | 3,800 | |
Reserves associated with modified coinsurance reinsurance arrangements | 2,774 | 3,809 | |
Letter of credit | 83 | ||
Amount of amortization, after-tax, of deferred gain on business sold | 33 | 25 | $ 26 |
Athene Holding Ltd. | Over-Collateralization | |||
Ceded Credit Risk [Line Items] | |||
Reserves associated with modified coinsurance reinsurance arrangements | 77 | ||
Swiss Re | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance recoverables, case basis | 1,600 | 1,600 | |
Trust funded to support reinsurance receivable | $ 656 | $ 710 |
Reinsurance - Schedule of Asset
Reinsurance - Schedule of Assets in Support of Reserves (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Ceded Credit Risk [Line Items] | ||||
Fixed maturity AFS securities | $ 82,300 | $ 99,465 | ||
Trading securities | 2,321 | 3,446 | ||
Equity securities | 306 | 427 | ||
Derivative investments | 6,305 | 3,519 | ||
Other investments | 4,757 | 3,577 | ||
Cash and invested cash | 3,193 | 2,499 | $ 2,331 | $ 1,462 |
Accrued investment income | 982 | 1,234 | ||
Other assets | 10,597 | 7,677 | ||
Athene Holding Ltd. | ||||
Ceded Credit Risk [Line Items] | ||||
Fixed maturity AFS securities | 177 | 474 | ||
Trading securities | 1,556 | 2,644 | ||
Equity securities | 58 | 60 | ||
Mortgage loans on real estate | 288 | 487 | ||
Derivative investments | 43 | 39 | ||
Other investments | 41 | 42 | ||
Cash and invested cash | 582 | 26 | ||
Accrued investment income | 23 | 35 | ||
Other assets | 6 | 2 | ||
Total | $ 2,774 | $ 3,809 |
Goodwill and Specifically Ide_3
Goodwill and Specifically Identifiable Intangible Assets - Changes in Carrying Amount of Goodwill, by Reportable Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill [Roll Forward] | ||||
Gross Goodwill as of Beginning- of-Year | $ 1,744 | $ 3,930 | ||
Accumulated Impairment as of Beginning- of-Year | (600) | (2,152) | ||
Net Goodwill as of Beginning- of-Year | $ 1,144 | 1,778 | ||
Impairment | 0 | (634) | ||
Net Goodwill as of End- of-Year | 1,144 | 1,144 | ||
Annuities | ||||
Goodwill [Roll Forward] | ||||
Gross Goodwill as of Beginning- of-Year | 1,040 | 1,040 | ||
Accumulated Impairment as of Beginning- of-Year | (600) | (600) | ||
Net Goodwill as of Beginning- of-Year | 440 | 440 | ||
Impairment | 0 | 0 | ||
Net Goodwill as of End- of-Year | 440 | 440 | ||
Life Insurance | ||||
Goodwill [Roll Forward] | ||||
Gross Goodwill as of Beginning- of-Year | 2,186 | |||
Accumulated Impairment as of Beginning- of-Year | (1,552) | |||
Net Goodwill as of Beginning- of-Year | 0 | 634 | ||
Impairment | $ (634) | (634) | ||
Net Goodwill as of End- of-Year | 0 | |||
Group Protection | ||||
Goodwill [Roll Forward] | ||||
Gross Goodwill as of Beginning- of-Year | 684 | 684 | ||
Accumulated Impairment as of Beginning- of-Year | 0 | 0 | ||
Net Goodwill as of Beginning- of-Year | 684 | 684 | ||
Impairment | 0 | 0 | ||
Net Goodwill as of End- of-Year | 684 | 684 | ||
Retirement Plan Services | ||||
Goodwill [Roll Forward] | ||||
Gross Goodwill as of Beginning- of-Year | 20 | 20 | ||
Accumulated Impairment as of Beginning- of-Year | 0 | $ 0 | ||
Net Goodwill as of Beginning- of-Year | 20 | 20 | ||
Impairment | 0 | 0 | ||
Net Goodwill as of End- of-Year | $ 20 | $ 20 |
Goodwill and Specifically Ide_4
Goodwill and Specifically Identifiable Intangible Assets - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Goodwill [Line Items] | |||
Term for new business cash flows | 10 years | ||
Goodwill impairment | $ 0 | $ 634 | |
Life Insurance | |||
Goodwill [Line Items] | |||
Goodwill impairment | $ 634 | $ 634 |
Goodwill and Specifically Ide_5
Goodwill and Specifically Identifiable Intangible Assets - Schedule of Intangible Assets by Reportable Segment (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Accumulated Amortization | $ 228 | $ 192 |
Intangible Assets, Net | ||
Gross Carrying Amount | 712 | 712 |
Accumulated Amortization | 228 | 192 |
Life Insurance | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 100 | 100 |
Accumulated Amortization | 71 | 67 |
Intangible Assets, Net | ||
Accumulated Amortization | 71 | 67 |
Group Protection | VOCRA | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 576 | 576 |
Accumulated Amortization | 145 | 115 |
Intangible Assets, Net | ||
Accumulated Amortization | 145 | 115 |
Group Protection | VODA | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 31 | 31 |
Accumulated Amortization | 12 | 10 |
Intangible Assets, Net | ||
Accumulated Amortization | 12 | 10 |
Retirement Plan Services | ||
Finite-Lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | $ 5 | $ 5 |
Goodwill and Specifically Ide_6
Goodwill and Specifically Identifiable Intangible Assets - Future Estimated Amortization of Specifically Identifiable Intangible Assets (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2024 | $ 37 |
2025 | 37 |
2026 | 37 |
2027 | 37 |
2028 | 37 |
Thereafter | $ 294 |
MRBs - Reconciles of MRBs Asset
MRBs - Reconciles of MRBs Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Market Risk Benefit [Line Items] | ||||
Assets | $ 3,894 | $ 2,807 | ||
Liabilities | 1,716 | 2,078 | ||
Net (Assets) Liabilities | (2,178) | (729) | $ 5,334 | |
Variable Annuities | ||||
Market Risk Benefit [Line Items] | ||||
Assets | 3,763 | 2,666 | ||
Liabilities | 1,583 | 2,004 | ||
Net (Assets) Liabilities | (2,180) | (662) | $ 2,398 | 5,207 |
Fixed Annuities | ||||
Market Risk Benefit [Line Items] | ||||
Assets | 96 | 117 | ||
Liabilities | 128 | 72 | ||
Net (Assets) Liabilities | 32 | (45) | $ 114 | $ 118 |
Retirement Plan Services | ||||
Market Risk Benefit [Line Items] | ||||
Assets | 35 | 24 | ||
Liabilities | 5 | 2 | ||
Net (Assets) Liabilities | $ (30) | $ (22) |
MRBs - Summary of Balances of C
MRBs - Summary of Balances of Changes in Net MRB (Assets) Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Market Risk Benefit [Roll Forward] | ||
Balance as of beginning-of-year | $ (729) | |
Balance as of end-of-year | (2,178) | $ (729) |
Variable Annuities | ||
Market Risk Benefit [Roll Forward] | ||
Balance as of beginning-of-year | (662) | 2,398 |
Balance as of beginning-of-year, before the effect of changes in non-performance risk | 1,511 | 4,823 |
Issuances | 8 | 12 |
Attributed fees collected | 1,497 | 1,571 |
Benefit payments | (64) | (63) |
Effect of changes in interest rates | (110) | (9,346) |
Effect of changes in equity markets | (3,167) | 4,293 |
Effect of changes in equity index volatility | (593) | (225) |
In-force updates and other changes in MRBs | 136 | 661 |
Effect of changes in future expected policyholder behavior | (33) | (158) |
Effect of changes in future expected assumptions | (66) | (57) |
Balance as of end-of-year, before the effect of changes in non-performance risk | (881) | 1,511 |
Effect of cumulative changes in non-performance risk | (1,299) | (2,173) |
Balance as of end-of-year | (2,180) | (662) |
Less: ceded MRB assets (liabilities) | (870) | 294 |
Balance as of end-of-year, net of reinsurance | $ (1,310) | $ (956) |
Weighted-average age of policyholders (years) | 72 years | 71 years |
Net amount at risk | $ 3,031 | $ 7,974 |
Variable Annuities | Cumulative Effect, Period of Adoption, Adjustment | ||
Market Risk Benefit [Roll Forward] | ||
Balance as of beginning-of-year | (2,173) | (2,425) |
Balance as of end-of-year | (2,173) | |
Fixed Annuities | ||
Market Risk Benefit [Roll Forward] | ||
Balance as of beginning-of-year | (45) | 114 |
Balance as of beginning-of-year, before the effect of changes in non-performance risk | (5) | 158 |
Issuances | 0 | 0 |
Attributed fees collected | 32 | 32 |
Benefit payments | 0 | 0 |
Effect of changes in interest rates | (24) | (232) |
Effect of changes in equity markets | (12) | 12 |
Effect of changes in equity index volatility | 9 | 14 |
In-force updates and other changes in MRBs | 5 | 10 |
Effect of changes in future expected policyholder behavior | 70 | 1 |
Effect of changes in future expected assumptions | 15 | 0 |
Balance as of end-of-year, before the effect of changes in non-performance risk | 90 | (5) |
Effect of cumulative changes in non-performance risk | (58) | (40) |
Balance as of end-of-year | 32 | (45) |
Less: ceded MRB assets (liabilities) | 0 | 0 |
Balance as of end-of-year, net of reinsurance | $ 32 | $ (45) |
Weighted-average age of policyholders (years) | 68 years | 68 years |
Net amount at risk | $ 203 | $ 171 |
Fixed Annuities | Cumulative Effect, Period of Adoption, Adjustment | ||
Market Risk Benefit [Roll Forward] | ||
Balance as of beginning-of-year | (40) | (44) |
Balance as of end-of-year | (40) | |
Retirement Plan Services | ||
Market Risk Benefit [Roll Forward] | ||
Balance as of beginning-of-year | (22) | (1) |
Balance as of beginning-of-year, before the effect of changes in non-performance risk | (20) | 12 |
Issuances | 0 | (3) |
Attributed fees collected | 6 | 6 |
Benefit payments | 0 | 0 |
Effect of changes in interest rates | 5 | (55) |
Effect of changes in equity markets | (13) | 18 |
Effect of changes in equity index volatility | (3) | (1) |
In-force updates and other changes in MRBs | 1 | 3 |
Effect of changes in future expected policyholder behavior | 0 | 0 |
Effect of changes in future expected assumptions | (2) | 0 |
Balance as of end-of-year, before the effect of changes in non-performance risk | (26) | (20) |
Effect of cumulative changes in non-performance risk | (4) | (2) |
Balance as of end-of-year | (30) | (22) |
Less: ceded MRB assets (liabilities) | (5) | 0 |
Balance as of end-of-year, net of reinsurance | $ (25) | $ (22) |
Weighted-average age of policyholders (years) | 63 years | 63 years |
Net amount at risk | $ 4 | $ 15 |
Retirement Plan Services | Cumulative Effect, Period of Adoption, Adjustment | ||
Market Risk Benefit [Roll Forward] | ||
Balance as of beginning-of-year | $ (2) | (13) |
Balance as of end-of-year | $ (2) |
Separate Accounts - Schedule of
Separate Accounts - Schedule of Fair Value of Separate Account Assets (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value, Separate Account Investment [Line Items] | ||
Separate account assets | $ 158,257 | $ 143,536 |
Mutual funds and collective investment trusts | ||
Fair Value, Separate Account Investment [Line Items] | ||
Separate account assets | 157,578 | 142,892 |
Exchange-traded funds | ||
Fair Value, Separate Account Investment [Line Items] | ||
Separate account assets | 350 | 258 |
Fixed maturity AFS securities | ||
Fair Value, Separate Account Investment [Line Items] | ||
Separate account assets | 167 | 169 |
Cash and invested cash | ||
Fair Value, Separate Account Investment [Line Items] | ||
Separate account assets | 25 | 98 |
Other investments | ||
Fair Value, Separate Account Investment [Line Items] | ||
Separate account assets | $ 137 | $ 119 |
Separate Accounts - Summary of
Separate Accounts - Summary of Balances and Changes in Separate Account Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value, Separate Account Investment [Line Items] | |||
Separate account liabilities | $ 158,257 | $ 143,536 | |
Protective | Reinsurance Agreement | |||
Fair Value, Separate Account Investment [Line Items] | |||
Separate account liabilities | 46 | 42 | |
Variable Annuities | |||
Fair Value, Separate Account Investment [Line Items] | |||
Separate account liabilities | 113,356 | 105,573 | $ 136,665 |
UL and Other | |||
Fair Value, Separate Account Investment [Line Items] | |||
Separate account liabilities | 25,150 | 20,920 | 24,785 |
Retirement Plan Services | |||
Fair Value, Separate Account Investment [Line Items] | |||
Separate account liabilities | 19,699 | 16,996 | $ 21,068 |
Other | |||
Fair Value, Separate Account Investment [Line Items] | |||
Separate account liabilities | $ 52 | $ 47 |
Separate Accounts - Schedule _2
Separate Accounts - Schedule of Reconciliation of Separate Account Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Separate Account, Liability [Roll Forward] | ||
Balance as of beginning-of-year | $ 143,536 | |
Balance as of end-of-year | 158,257 | $ 143,536 |
Variable Annuities | ||
Separate Account, Liability [Roll Forward] | ||
Balance as of beginning-of-year | 105,573 | 136,665 |
Gross deposits | 2,982 | 3,371 |
Withdrawals | (10,177) | (9,238) |
Policyholder assessments | (2,510) | (2,603) |
Change in market performance | 16,870 | (23,194) |
Net transfers from (to) general account | 618 | 572 |
Balance as of end-of-year | 113,356 | 105,573 |
Cash surrender value | 111,928 | 103,987 |
UL and Other | ||
Separate Account, Liability [Roll Forward] | ||
Balance as of beginning-of-year | 20,920 | 24,785 |
Gross deposits | 1,630 | 1,900 |
Withdrawals | (313) | (454) |
Policyholder assessments | (964) | (938) |
Change in market performance | 3,973 | (4,371) |
Net transfers from (to) general account | (96) | (2) |
Balance as of end-of-year | 25,150 | 20,920 |
Cash surrender value | 22,760 | 18,666 |
Retirement Plan Services | ||
Separate Account, Liability [Roll Forward] | ||
Balance as of beginning-of-year | 16,996 | 21,068 |
Gross deposits | 2,222 | 2,378 |
Withdrawals | (2,527) | (2,378) |
Policyholder assessments | (163) | (164) |
Change in market performance | 3,221 | (3,710) |
Net transfers from (to) general account | (50) | (198) |
Balance as of end-of-year | 19,699 | 16,996 |
Cash surrender value | $ 19,684 | $ 16,982 |
Policyholder Account Balances -
Policyholder Account Balances - Schedule of Policyholder Account Balances (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | $ 120,316 | $ 113,972 | |
Variable Annuities | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 29,141 | 22,184 | $ 19,148 |
Fixed Annuities | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 25,330 | 23,338 | 22,522 |
UL and Other | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 36,784 | 37,258 | 37,719 |
Retirement Plan Services | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 23,784 | 25,138 | $ 23,579 |
Other | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 5,277 | 6,054 | |
Other | Reinsurance Agreement | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | $ 4,900 | $ 5,700 |
Policyholder Account Balances_2
Policyholder Account Balances - Summary of Balances and Changes in Policyholder Account Balances (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Policyholder Account Balance [Roll Forward] | |||
Balance as of beginning-of-year | $ 113,972 | ||
Interest credited | 3,202 | $ 2,860 | $ 2,912 |
Balance as of end-of-year | 120,316 | 113,972 | |
Variable Annuities | |||
Policyholder Account Balance [Roll Forward] | |||
Balance as of beginning-of-year | 22,184 | 19,148 | |
Gross deposits | 4,709 | 5,178 | |
Withdrawals | (742) | (417) | |
Policyholder assessments | (1) | (2) | |
Net transfers from (to) separate account | (427) | (492) | |
Interest credited | 548 | 287 | |
Change in fair value of embedded derivative instrument | 2,870 | (1,518) | |
Balance as of end-of-year | $ 29,141 | $ 22,184 | 19,148 |
Weighted-average crediting rate | 2.10% | 1.40% | |
Net amount at risk | $ 3,031 | $ 7,974 | |
Cash surrender value | 27,975 | 21,147 | |
Fixed Annuities | |||
Policyholder Account Balance [Roll Forward] | |||
Balance as of beginning-of-year | 23,338 | 22,522 | |
Gross deposits | 5,130 | 3,284 | |
Withdrawals | (3,926) | (2,511) | |
Policyholder assessments | (56) | (51) | |
Net transfers from (to) separate account | 0 | 0 | |
Interest credited | 642 | 532 | |
Change in fair value of embedded derivative instrument | 202 | (438) | |
Balance as of end-of-year | $ 25,330 | $ 23,338 | 22,522 |
Weighted-average crediting rate | 2.70% | 2.40% | |
Net amount at risk | $ 203 | $ 171 | |
Cash surrender value | 24,324 | 22,502 | |
UL and Other | |||
Policyholder Account Balance [Roll Forward] | |||
Balance as of beginning-of-year | 37,258 | 37,719 | |
Gross deposits | 3,739 | 3,905 | |
Withdrawals | (1,430) | (1,215) | |
Policyholder assessments | (4,464) | (4,446) | |
Net transfers from (to) separate account | 97 | 2 | |
Interest credited | 1,463 | 1,476 | |
Change in fair value of embedded derivative instrument | 121 | (183) | |
Balance as of end-of-year | $ 36,784 | $ 37,258 | 37,719 |
Weighted-average crediting rate | 4% | 3.90% | |
Net amount at risk | $ 300,994 | $ 302,481 | |
Cash surrender value | 32,585 | 33,130 | |
Retirement Plan Services | |||
Policyholder Account Balance [Roll Forward] | |||
Balance as of beginning-of-year | 25,138 | 23,579 | |
Gross deposits | 2,776 | 4,012 | |
Withdrawals | (4,494) | (3,579) | |
Policyholder assessments | (14) | (13) | |
Net transfers from (to) separate account | (295) | 510 | |
Interest credited | 673 | 629 | |
Change in fair value of embedded derivative instrument | 0 | 0 | |
Balance as of end-of-year | $ 23,784 | $ 25,138 | $ 23,579 |
Weighted-average crediting rate | 2.70% | 2.60% | |
Net amount at risk | $ 4 | $ 15 | |
Cash surrender value | $ 23,765 | $ 25,133 |
Policyholder Account Balances_3
Policyholder Account Balances - Summary of Policyholder Account Balances by Ranges (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | $ 120,316 | $ 113,972 | |
Up to 1.00% | |||
Policyholder Account Balance [Line Items] | |||
Range of guaranteed minimum crediting rate | 1% | 1% | |
4.01% and above | |||
Policyholder Account Balance [Line Items] | |||
Range of guaranteed minimum crediting rate | 4.01% | 4.01% | |
Minimum | 1.01% - 2.00% | |||
Policyholder Account Balance [Line Items] | |||
Range of guaranteed minimum crediting rate | 1.01% | 1.01% | |
Minimum | 2.01% - 3.00% | |||
Policyholder Account Balance [Line Items] | |||
Range of guaranteed minimum crediting rate | 2.01% | 2.01% | |
Minimum | 3.01% - 4.00% | |||
Policyholder Account Balance [Line Items] | |||
Range of guaranteed minimum crediting rate | 3.01% | 3.01% | |
Maximum | 1.01% - 2.00% | |||
Policyholder Account Balance [Line Items] | |||
Range of guaranteed minimum crediting rate | 2% | 2% | |
Maximum | 2.01% - 3.00% | |||
Policyholder Account Balance [Line Items] | |||
Range of guaranteed minimum crediting rate | 3% | 3% | |
Maximum | 3.01% - 4.00% | |||
Policyholder Account Balance [Line Items] | |||
Range of guaranteed minimum crediting rate | 4% | 4% | |
Variable Annuities | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | $ 29,141 | $ 22,184 | $ 19,148 |
Variable Annuities | At Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 1,961 | 2,218 | |
Variable Annuities | 1-50 Basis Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 0 | 0 | |
Variable Annuities | 51-100 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 0 | 0 | |
Variable Annuities | 101-150 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 0 | 8 | |
Variable Annuities | Greater Than 150 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 7 | 0 | |
Variable Annuities | Up to 1.00% | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 0 | 0 | |
Variable Annuities | Up to 1.00% | At Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 0 | 0 | |
Variable Annuities | Up to 1.00% | 1-50 Basis Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 0 | 0 | |
Variable Annuities | Up to 1.00% | 51-100 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 0 | 0 | |
Variable Annuities | Up to 1.00% | 101-150 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 0 | 0 | |
Variable Annuities | Up to 1.00% | Greater Than 150 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 0 | 0 | |
Variable Annuities | 1.01% - 2.00% | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 12 | 12 | |
Variable Annuities | 1.01% - 2.00% | At Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 5 | 4 | |
Variable Annuities | 1.01% - 2.00% | 1-50 Basis Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 0 | 0 | |
Variable Annuities | 1.01% - 2.00% | 51-100 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 0 | 0 | |
Variable Annuities | 1.01% - 2.00% | 101-150 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 0 | 8 | |
Variable Annuities | 1.01% - 2.00% | Greater Than 150 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 7 | 0 | |
Variable Annuities | 2.01% - 3.00% | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 576 | 658 | |
Variable Annuities | 2.01% - 3.00% | At Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 576 | 658 | |
Variable Annuities | 2.01% - 3.00% | 1-50 Basis Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 0 | 0 | |
Variable Annuities | 2.01% - 3.00% | 51-100 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 0 | 0 | |
Variable Annuities | 2.01% - 3.00% | 101-150 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 0 | 0 | |
Variable Annuities | 2.01% - 3.00% | Greater Than 150 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 0 | 0 | |
Variable Annuities | 3.01% - 4.00% | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 1,370 | 1,545 | |
Variable Annuities | 3.01% - 4.00% | At Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 1,370 | 1,545 | |
Variable Annuities | 3.01% - 4.00% | 1-50 Basis Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 0 | 0 | |
Variable Annuities | 3.01% - 4.00% | 51-100 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 0 | 0 | |
Variable Annuities | 3.01% - 4.00% | 101-150 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 0 | 0 | |
Variable Annuities | 3.01% - 4.00% | Greater Than 150 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | $ 0 | 0 | |
Variable Annuities | 4.01% and above | |||
Policyholder Account Balance [Line Items] | |||
Range of guaranteed minimum crediting rate | 4.01% | ||
Policyholder account balances | $ 10 | 11 | |
Variable Annuities | 4.01% and above | At Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 10 | 11 | |
Variable Annuities | 4.01% and above | 1-50 Basis Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 0 | 0 | |
Variable Annuities | 4.01% and above | 51-100 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 0 | 0 | |
Variable Annuities | 4.01% and above | 101-150 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 0 | 0 | |
Variable Annuities | 4.01% and above | Greater Than 150 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 0 | 0 | |
Variable Annuities | Other | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 27,173 | 19,958 | |
Variable Annuities | Other | At Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 0 | 0 | |
Variable Annuities | Other | 1-50 Basis Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 0 | 0 | |
Variable Annuities | Other | 51-100 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 0 | 0 | |
Variable Annuities | Other | 101-150 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 0 | 0 | |
Variable Annuities | Other | Greater Than 150 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 0 | 0 | |
Fixed Annuities | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 25,330 | 23,338 | 22,522 |
Fixed Annuities | At Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 4,010 | 4,927 | |
Fixed Annuities | 1-50 Basis Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 643 | 646 | |
Fixed Annuities | 51-100 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 787 | 769 | |
Fixed Annuities | 101-150 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 1,032 | 1,055 | |
Fixed Annuities | Greater Than 150 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | $ 5,528 | $ 2,386 | |
Fixed Annuities | Up to 1.00% | |||
Policyholder Account Balance [Line Items] | |||
Range of guaranteed minimum crediting rate | 1% | 1% | |
Policyholder account balances | $ 4,687 | $ 3,869 | |
Fixed Annuities | Up to 1.00% | At Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 696 | 891 | |
Fixed Annuities | Up to 1.00% | 1-50 Basis Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 511 | 497 | |
Fixed Annuities | Up to 1.00% | 51-100 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 546 | 589 | |
Fixed Annuities | Up to 1.00% | 101-150 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 505 | 563 | |
Fixed Annuities | Up to 1.00% | Greater Than 150 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 2,429 | 1,329 | |
Fixed Annuities | 1.01% - 2.00% | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 4,366 | 2,416 | |
Fixed Annuities | 1.01% - 2.00% | At Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 426 | 544 | |
Fixed Annuities | 1.01% - 2.00% | 1-50 Basis Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 97 | 144 | |
Fixed Annuities | 1.01% - 2.00% | 51-100 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 235 | 179 | |
Fixed Annuities | 1.01% - 2.00% | 101-150 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 527 | 492 | |
Fixed Annuities | 1.01% - 2.00% | Greater Than 150 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 3,081 | 1,057 | |
Fixed Annuities | 2.01% - 3.00% | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 1,864 | 1,979 | |
Fixed Annuities | 2.01% - 3.00% | At Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 1,805 | 1,973 | |
Fixed Annuities | 2.01% - 3.00% | 1-50 Basis Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 35 | 5 | |
Fixed Annuities | 2.01% - 3.00% | 51-100 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 6 | 1 | |
Fixed Annuities | 2.01% - 3.00% | 101-150 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 0 | 0 | |
Fixed Annuities | 2.01% - 3.00% | Greater Than 150 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 18 | 0 | |
Fixed Annuities | 3.01% - 4.00% | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 903 | 1,326 | |
Fixed Annuities | 3.01% - 4.00% | At Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 903 | 1,326 | |
Fixed Annuities | 3.01% - 4.00% | 1-50 Basis Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 0 | 0 | |
Fixed Annuities | 3.01% - 4.00% | 51-100 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 0 | 0 | |
Fixed Annuities | 3.01% - 4.00% | 101-150 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 0 | 0 | |
Fixed Annuities | 3.01% - 4.00% | Greater Than 150 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | $ 0 | $ 0 | |
Fixed Annuities | 4.01% and above | |||
Policyholder Account Balance [Line Items] | |||
Range of guaranteed minimum crediting rate | 4.01% | 4.01% | |
Policyholder account balances | $ 180 | $ 193 | |
Fixed Annuities | 4.01% and above | At Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 180 | 193 | |
Fixed Annuities | 4.01% and above | 1-50 Basis Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 0 | 0 | |
Fixed Annuities | 4.01% and above | 51-100 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 0 | 0 | |
Fixed Annuities | 4.01% and above | 101-150 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 0 | 0 | |
Fixed Annuities | 4.01% and above | Greater Than 150 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 0 | 0 | |
Fixed Annuities | Other | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 13,330 | 13,555 | |
Fixed Annuities | Other | At Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 0 | 0 | |
Fixed Annuities | Other | 1-50 Basis Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 0 | 0 | |
Fixed Annuities | Other | 51-100 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 0 | 0 | |
Fixed Annuities | Other | 101-150 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 0 | 0 | |
Fixed Annuities | Other | Greater Than 150 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | $ 0 | $ 0 | |
Fixed Annuities | Minimum | 1.01% - 2.00% | |||
Policyholder Account Balance [Line Items] | |||
Range of guaranteed minimum crediting rate | 1.01% | 1.01% | |
Fixed Annuities | Minimum | 2.01% - 3.00% | |||
Policyholder Account Balance [Line Items] | |||
Range of guaranteed minimum crediting rate | 2.01% | 2.01% | |
Fixed Annuities | Minimum | 3.01% - 4.00% | |||
Policyholder Account Balance [Line Items] | |||
Range of guaranteed minimum crediting rate | 3.01% | 3.01% | |
Fixed Annuities | Maximum | 1.01% - 2.00% | |||
Policyholder Account Balance [Line Items] | |||
Range of guaranteed minimum crediting rate | 2% | 2% | |
Fixed Annuities | Maximum | 2.01% - 3.00% | |||
Policyholder Account Balance [Line Items] | |||
Range of guaranteed minimum crediting rate | 3% | 3% | |
Fixed Annuities | Maximum | 3.01% - 4.00% | |||
Policyholder Account Balance [Line Items] | |||
Range of guaranteed minimum crediting rate | 4% | 4% | |
UL and Other | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | $ 36,784 | $ 37,258 | 37,719 |
UL and Other | At Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 26,689 | 27,776 | |
UL and Other | 1-50 Basis Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 11 | 156 | |
UL and Other | 51-100 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 344 | 195 | |
UL and Other | 101-150 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 121 | 29 | |
UL and Other | Greater Than 150 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | $ 3,477 | $ 3,574 | |
UL and Other | Up to 1.00% | |||
Policyholder Account Balance [Line Items] | |||
Range of guaranteed minimum crediting rate | 1% | 1% | |
Policyholder account balances | $ 943 | $ 833 | |
UL and Other | Up to 1.00% | At Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 275 | 318 | |
UL and Other | Up to 1.00% | 1-50 Basis Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 0 | 0 | |
UL and Other | Up to 1.00% | 51-100 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 195 | 194 | |
UL and Other | Up to 1.00% | 101-150 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 121 | 29 | |
UL and Other | Up to 1.00% | Greater Than 150 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 352 | 292 | |
UL and Other | 1.01% - 2.00% | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 3,682 | 3,840 | |
UL and Other | 1.01% - 2.00% | At Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 557 | 558 | |
UL and Other | 1.01% - 2.00% | 1-50 Basis Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 0 | 0 | |
UL and Other | 1.01% - 2.00% | 51-100 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 0 | 0 | |
UL and Other | 1.01% - 2.00% | 101-150 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 0 | 0 | |
UL and Other | 1.01% - 2.00% | Greater Than 150 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 3,125 | 3,282 | |
UL and Other | 2.01% - 3.00% | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 7,084 | 7,374 | |
UL and Other | 2.01% - 3.00% | At Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 6,925 | 7,218 | |
UL and Other | 2.01% - 3.00% | 1-50 Basis Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 11 | 156 | |
UL and Other | 2.01% - 3.00% | 51-100 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 148 | 0 | |
UL and Other | 2.01% - 3.00% | 101-150 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 0 | 0 | |
UL and Other | 2.01% - 3.00% | Greater Than 150 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 0 | 0 | |
UL and Other | 3.01% - 4.00% | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 15,203 | 15,859 | |
UL and Other | 3.01% - 4.00% | At Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 15,202 | 15,858 | |
UL and Other | 3.01% - 4.00% | 1-50 Basis Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 0 | 0 | |
UL and Other | 3.01% - 4.00% | 51-100 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 1 | 1 | |
UL and Other | 3.01% - 4.00% | 101-150 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 0 | 0 | |
UL and Other | 3.01% - 4.00% | Greater Than 150 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | $ 0 | $ 0 | |
UL and Other | 4.01% and above | |||
Policyholder Account Balance [Line Items] | |||
Range of guaranteed minimum crediting rate | 4.01% | 4.01% | |
Policyholder account balances | $ 3,730 | $ 3,824 | |
UL and Other | 4.01% and above | At Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 3,730 | 3,824 | |
UL and Other | 4.01% and above | 1-50 Basis Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 0 | 0 | |
UL and Other | 4.01% and above | 51-100 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 0 | 0 | |
UL and Other | 4.01% and above | 101-150 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 0 | 0 | |
UL and Other | 4.01% and above | Greater Than 150 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 0 | 0 | |
UL and Other | Other | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 6,142 | 5,528 | |
UL and Other | Other | At Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 0 | 0 | |
UL and Other | Other | 1-50 Basis Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 0 | 0 | |
UL and Other | Other | 51-100 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 0 | 0 | |
UL and Other | Other | 101-150 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 0 | 0 | |
UL and Other | Other | Greater Than 150 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | $ 0 | $ 0 | |
UL and Other | Minimum | 1.01% - 2.00% | |||
Policyholder Account Balance [Line Items] | |||
Range of guaranteed minimum crediting rate | 1.01% | 1.01% | |
UL and Other | Minimum | 2.01% - 3.00% | |||
Policyholder Account Balance [Line Items] | |||
Range of guaranteed minimum crediting rate | 2.01% | 2.01% | |
UL and Other | Minimum | 3.01% - 4.00% | |||
Policyholder Account Balance [Line Items] | |||
Range of guaranteed minimum crediting rate | 3.01% | 3.01% | |
UL and Other | Maximum | 1.01% - 2.00% | |||
Policyholder Account Balance [Line Items] | |||
Range of guaranteed minimum crediting rate | 2% | 2% | |
UL and Other | Maximum | 2.01% - 3.00% | |||
Policyholder Account Balance [Line Items] | |||
Range of guaranteed minimum crediting rate | 3% | 3% | |
UL and Other | Maximum | 3.01% - 4.00% | |||
Policyholder Account Balance [Line Items] | |||
Range of guaranteed minimum crediting rate | 4% | 4% | |
Retirement Plan Services | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | $ 23,784 | $ 25,138 | $ 23,579 |
Retirement Plan Services | At Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 10,116 | 12,579 | |
Retirement Plan Services | 1-50 Basis Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 2,634 | 3,200 | |
Retirement Plan Services | 51-100 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 2,319 | 5,286 | |
Retirement Plan Services | 101-150 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 5,736 | 2,165 | |
Retirement Plan Services | Greater Than 150 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 2,979 | 1,908 | |
Retirement Plan Services | Up to 1.00% | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 9,648 | 9,877 | |
Retirement Plan Services | Up to 1.00% | At Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 452 | 961 | |
Retirement Plan Services | Up to 1.00% | 1-50 Basis Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 569 | 1,001 | |
Retirement Plan Services | Up to 1.00% | 51-100 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 744 | 4,304 | |
Retirement Plan Services | Up to 1.00% | 101-150 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 4,904 | 1,703 | |
Retirement Plan Services | Up to 1.00% | Greater Than 150 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 2,979 | 1,908 | |
Retirement Plan Services | 1.01% - 2.00% | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 5,022 | 5,415 | |
Retirement Plan Services | 1.01% - 2.00% | At Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 550 | 1,774 | |
Retirement Plan Services | 1.01% - 2.00% | 1-50 Basis Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 2,065 | 2,197 | |
Retirement Plan Services | 1.01% - 2.00% | 51-100 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 1,575 | 982 | |
Retirement Plan Services | 1.01% - 2.00% | 101-150 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 832 | 462 | |
Retirement Plan Services | 1.01% - 2.00% | Greater Than 150 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 0 | 0 | |
Retirement Plan Services | 2.01% - 3.00% | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 2,492 | 2,712 | |
Retirement Plan Services | 2.01% - 3.00% | At Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 2,492 | 2,711 | |
Retirement Plan Services | 2.01% - 3.00% | 1-50 Basis Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 0 | 1 | |
Retirement Plan Services | 2.01% - 3.00% | 51-100 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 0 | 0 | |
Retirement Plan Services | 2.01% - 3.00% | 101-150 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 0 | 0 | |
Retirement Plan Services | 2.01% - 3.00% | Greater Than 150 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 0 | 0 | |
Retirement Plan Services | 3.01% - 4.00% | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 5,012 | 5,623 | |
Retirement Plan Services | 3.01% - 4.00% | At Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 5,012 | 5,622 | |
Retirement Plan Services | 3.01% - 4.00% | 1-50 Basis Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 0 | 1 | |
Retirement Plan Services | 3.01% - 4.00% | 51-100 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 0 | 0 | |
Retirement Plan Services | 3.01% - 4.00% | 101-150 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 0 | 0 | |
Retirement Plan Services | 3.01% - 4.00% | Greater Than 150 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 0 | 0 | |
Retirement Plan Services | 4.01% and above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 1,610 | 1,511 | |
Retirement Plan Services | 4.01% and above | At Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 1,610 | 1,511 | |
Retirement Plan Services | 4.01% and above | 1-50 Basis Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 0 | 0 | |
Retirement Plan Services | 4.01% and above | 51-100 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 0 | 0 | |
Retirement Plan Services | 4.01% and above | 101-150 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 0 | 0 | |
Retirement Plan Services | 4.01% and above | Greater Than 150 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | $ 0 | $ 0 |
Future Contract Benefits - Summ
Future Contract Benefits - Summary of Reconciliation of Future Contract Benefits (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Liability for Future Policy Benefit, Activity [Line Items] | ||
Future contract benefits | $ 40,174 | $ 38,302 |
Other | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Future contract benefits | 3,343 | 3,219 |
Payout Annuities | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Future contract benefits | 2,084 | 2,003 |
Traditional Life | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Future contract benefits | 3,553 | 3,190 |
Group Protection | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Future contract benefits | 5,689 | 5,462 |
UL and Other | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Future contract benefits | 15,752 | 14,777 |
Other Operations (1) | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Future contract benefits | 9,753 | 9,651 |
Other Operations (1) | Protective | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Future contract benefits | 5,600 | 5,400 |
Other Operations (1) | Swiss Re | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Future contract benefits | $ 2,100 | $ 2,200 |
Future Contract Benefits - Su_2
Future Contract Benefits - Summary of Changes in Present Values of Expected Net Premiums and LFPB (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Present Value of Expected LFPB | |||
Net balance as of end-of-year | $ 40,174 | $ 38,302 | |
Payout Annuities | |||
Present Value of Expected Net Premiums | |||
Balance as of beginning-of-year | 0 | 0 | |
Beginning balance at original discount rate | 0 | 0 | |
Effect of changes in cash flow assumptions | 0 | $ 0 | |
Effect of actual variances from expected experience | 0 | 0 | |
Adjusted balance as of beginning-of-year | 0 | 0 | |
Issuances | 0 | 0 | |
Interest accrual | 0 | 0 | |
Net premiums collected | 0 | 0 | |
Flooring impact of LFPB | 0 | 0 | |
Ending balance at original discount rate | 0 | 0 | |
Effect of cumulative changes in discount rate assumptions | 0 | 0 | |
Balance as of end-of-year | 0 | 0 | |
Present Value of Expected LFPB | |||
Balance as of beginning-of-year | 2,003 | 2,511 | |
Beginning balance of original discount rate | 2,266 | 2,245 | |
Effect of changes in cash flow assumptions | 0 | 0 | |
Effect of actual variances from expected experience | 1 | 3 | |
Adjusted balance as of beginning-of-year | 2,267 | 2,248 | |
Issuances | 109 | 122 | |
Interest accrual | 86 | 84 | |
Benefit payments | (191) | (188) | |
Ending balance of original discount rate | 2,271 | 2,266 | |
Effect of cumulative changes in discount rate assumptions | (187) | (263) | |
Balance as of end-of-year | 2,084 | 2,003 | |
Net balance as of end-of-year | 2,084 | 2,003 | |
Less: reinsurance recoverables | 1,627 | 10 | |
Net balance as of end-of-year, net of reinsurance | $ 457 | $ 1,993 | |
Weighted-average duration of future policyholder benefit liability | 9 years | 9 years | |
Deferred profit liability | $ 56 | $ 38 | 22 |
Payout Annuities | Cumulative Effect, Period of Adoption, Adjustment | |||
Present Value of Expected Net Premiums | |||
Balance as of beginning-of-year | 0 | 0 | |
Balance as of end-of-year | 0 | ||
Present Value of Expected LFPB | |||
Balance as of beginning-of-year | (263) | 266 | |
Balance as of end-of-year | (263) | ||
Traditional Life | |||
Present Value of Expected Net Premiums | |||
Balance as of beginning-of-year | 5,896 | 6,610 | |
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 | (275) | (21) | |
Adjusted balance as of beginning-of-year | 6,200 | 5,364 | |
Issuances | 580 | 1,655 | |
Interest accrual | 236 | 209 | |
Net premiums collected | (784) | (742) | |
Flooring impact of LFPB | 4 | (6) | |
Ending balance at original discount rate | 6,236 | 6,480 | |
Effect of cumulative changes in discount rate assumptions | (152) | (584) | |
Balance as of end-of-year | 6,084 | 5,896 | |
Present Value of Expected LFPB | |||
Balance as of beginning-of-year | 9,086 | 10,353 | |
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 | (305) | (5) | |
Adjusted balance as of beginning-of-year | 9,553 | 8,567 | |
Issuances | 580 | 1,655 | |
Interest accrual | 364 | 326 | |
Benefit payments | (658) | (669) | |
Ending balance of original discount rate | 9,839 | 9,879 | |
Effect of cumulative changes in discount rate assumptions | (202) | (793) | |
Balance as of end-of-year | 9,637 | 9,086 | |
Net balance as of end-of-year | 3,553 | 3,190 | |
Less: reinsurance recoverables | 255 | 270 | |
Net balance as of end-of-year, net of reinsurance | $ 3,298 | $ 2,920 | |
Weighted-average duration of future policyholder benefit liability | 10 years | 11 years | |
Traditional Life | Cumulative Effect, Period of Adoption, Adjustment | |||
Present Value of Expected Net Premiums | |||
Balance as of beginning-of-year | $ (584) | $ 843 | |
Balance as of end-of-year | (584) | ||
Present Value of Expected LFPB | |||
Balance as of beginning-of-year | (793) | 1,460 | |
Balance as of end-of-year | (793) | ||
Group Protection | |||
Present Value of Expected LFPB | |||
Balance as of beginning-of-year | 5,462 | 5,936 | |
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 | (261) | (117) | |
Adjusted balance as of beginning-of-year | 5,771 | 5,572 | |
Issuances | 1,702 | 1,777 | |
Interest accrual | 159 | 141 | |
Benefit payments | (1,453) | (1,431) | |
Ending balance of original discount rate | 6,179 | 6,059 | |
Effect of cumulative changes in discount rate assumptions | (490) | (597) | |
Balance as of end-of-year | 5,689 | 5,462 | |
Net balance as of end-of-year | 5,689 | 5,462 | |
Less: reinsurance recoverables | 123 | 127 | |
Net balance as of end-of-year, net of reinsurance | $ 5,566 | $ 5,335 | |
Weighted-average duration of future policyholder benefit liability | 5 years | 4 years | |
Group Protection | Cumulative Effect, Period of Adoption, Adjustment | |||
Present Value of Expected LFPB | |||
Balance as of beginning-of-year | $ (597) | $ 262 | |
Balance as of end-of-year | (597) | ||
UL and Other | |||
Present Value of Expected LFPB | |||
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 | 165 | 3,108 | |
Effect of actual variances from expected experience | (77) | $ 195 | |
Adjusted balance as of beginning-of-year | 15,770 | 14,703 | |
Issuances | 0 | 7 | |
Interest accrual | 765 | 626 | |
Net assessments collected | 658 | 974 | |
Benefit payments | (588) | (628) | |
Balance as of end-of-year, excluding shadow balance in AOCI | 16,605 | 15,682 | |
Balance as of end-of-year | 15,752 | 14,777 | |
Net balance as of end-of-year | 15,752 | 14,777 | |
Less: reinsurance recoverables | 9,505 | 1,975 | |
Net balance as of end-of-year, net of reinsurance | $ 6,247 | $ 12,802 | |
Weighted-average duration of future policyholder benefit liability | 17 years | 17 years | |
UL and Other | Cumulative Effect, Period of Adoption, Adjustment | |||
Present Value of Expected LFPB | |||
Balance as of beginning-of-year | $ (905) | $ 1,113 | |
Balance as of end-of-year | $ (853) | $ (905) |
Future Contract Benefits - Su_3
Future Contract Benefits - Summary of Discounted and Undiscounted Expected Future Gross premiums and Expected Future Benefit Payments (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Payout Annuities | ||
Undiscounted | ||
Expected future gross premiums | $ 0 | $ 0 |
Expected future benefit payments | 3,481 | 3,471 |
Discounted | ||
Expected future gross premiums | 0 | 0 |
Expected future benefit payments | 2,084 | 2,003 |
Traditional Life | ||
Undiscounted | ||
Expected future gross premiums | 13,406 | 13,166 |
Expected future benefit payments | 13,404 | 13,026 |
Discounted | ||
Expected future gross premiums | 9,341 | 8,887 |
Expected future benefit payments | 9,637 | 9,086 |
Group Protection | ||
Undiscounted | ||
Expected future benefit payments | 7,250 | 7,063 |
Discounted | ||
Expected future benefit payments | $ 6,179 | $ 6,059 |
Future Contract Benefits - Su_4
Future Contract Benefits - Summary of Gross Premiums and Interest Accretion (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Payout Annuities | |||
Liability for Future Policy Benefit, Activity [Line Items] | |||
Gross assessments | $ 116 | $ 133 | $ 95 |
Interest accretion | 86 | 84 | 84 |
Traditional Life | |||
Liability for Future Policy Benefit, Activity [Line Items] | |||
Gross assessments | 1,183 | 1,136 | 1,022 |
Interest accretion | 128 | 117 | 113 |
Group Protection | |||
Liability for Future Policy Benefit, Activity [Line Items] | |||
Gross assessments | 3,549 | 3,393 | 3,145 |
Interest accretion | 159 | 141 | 145 |
UL and Other | |||
Liability for Future Policy Benefit, Activity [Line Items] | |||
Gross assessments | 1,221 | 2,818 | 3,150 |
Interest accretion | $ 765 | $ 626 | $ 498 |
Future Contract Benefits - Su_5
Future Contract Benefits - Summary of Weighted-Average Interest Rates (Details) | Dec. 31, 2023 | Dec. 31, 2022 |
Payout Annuities | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Interest accretion rate | 3.90% | 3.90% |
Current discount rate | 4.90% | 5.30% |
Traditional Life | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Interest accretion rate | 5% | 5% |
Current discount rate | 4.70% | 5.10% |
Group Protection | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Interest accretion rate | 3% | 2.80% |
Current discount rate | 4.70% | 5.10% |
UL and Other | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Interest accretion rate | 5.30% | 5% |
Future Contract Benefits - Narr
Future Contract Benefits - Narrative (Details) $ in Billions | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
UL and Other | |
Liability for Future Policy Benefit, Activity [Line Items] | |
Unfavorable impact primarily from updates to policyholder lapse behavior assumptions, net of reinsurance | $ 1.7 |
Short-Term and Long-Term Debt -
Short-Term and Long-Term Debt - Schedule of Debt (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Oct. 31, 2017 | Jul. 31, 2017 | Dec. 31, 2015 | Oct. 31, 2013 | Dec. 31, 1998 | Dec. 31, 1994 |
Debt Instrument [Line Items] | |||||||||||
Current maturities of long-term debt | $ 50,000,000 | $ 0 | |||||||||
Short-term debt | 790,000,000 | 562,000,000 | |||||||||
Total short-term debt | 840,000,000 | 562,000,000 | |||||||||
Total long-term debt | 2,195,000,000 | 2,269,000,000 | |||||||||
Surplus Note9.76 Due2024 [Member] | Subordinated Debt | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Surplus notes | $ 0 | 50,000,000 | $ 50,000,000 | ||||||||
Stated interest rate | 9.76% | ||||||||||
Surplus Note6.03 Due2028 [Member] | Subordinated Debt | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Surplus notes | $ 750,000,000 | 750,000,000 | $ 750,000,000 | ||||||||
Stated interest rate | 6.03% | ||||||||||
Surplus Note6.56 Due2028 [Member] | Subordinated Debt | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Surplus notes | $ 500,000,000 | 500,000,000 | $ 500,000,000 | ||||||||
Stated interest rate | 6.56% | ||||||||||
Surplus Note111 Bps Due2028 [Member] | Subordinated Debt | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Surplus notes | $ 71,000,000 | 71,000,000 | $ 71,000,000 | ||||||||
Surplus Note226 Bps Due2028 [Member] | Subordinated Debt | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Surplus notes | 544,000,000 | 568,000,000 | |||||||||
Surplus Note200 Bps Due2035 [Member] | Subordinated Debt | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Surplus notes | 30,000,000 | 30,000,000 | $ 30,000,000 | ||||||||
Surplus Note155 Bps Due2037 [Member] | Subordinated Debt | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Surplus notes | 25,000,000 | 25,000,000 | $ 25,000,000 | ||||||||
Surplus Note4.20 Due2037 [Member] | Subordinated Debt | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Surplus notes | $ 50,000,000 | 50,000,000 | $ 50,000,000 | ||||||||
Stated interest rate | 4.20% | ||||||||||
Surplus Note100 Bps Due2037 [Member] | Subordinated Debt | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Surplus notes | $ 154,000,000 | 154,000,000 | |||||||||
Surplus Notes4.225 Due2037 [Member] | Subordinated Debt | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Surplus notes | $ 28,000,000 | 28,000,000 | $ 28,000,000 | ||||||||
Stated interest rate | 4.225% | ||||||||||
Surplus Notes4.00 Due2037 [Member] | Subordinated Debt | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Surplus notes | $ 30,000,000 | 30,000,000 | $ 30,000,000 | ||||||||
Stated interest rate | 4% | ||||||||||
Surplus Note4.50 Due2038 [Member] | Subordinated Debt | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Surplus notes | $ 13,000,000 | $ 13,000,000 | $ 13,000,000 | ||||||||
Stated interest rate | 4.50% |
Short-Term and Long-Term Debt_2
Short-Term and Long-Term Debt - Future Principal Payments (Details) | Dec. 31, 2023 USD ($) |
Long-Term Debt, Fiscal Year Maturity [Abstract] | |
2024 | $ 50,000,000 |
2025 | 0 |
2026 | 0 |
2027 | 0 |
2028 | 1,865,000,000 |
Thereafter | 330,000,000 |
Total | $ 2,245,000,000 |
Short-Term and Long-Term Debt_3
Short-Term and Long-Term Debt - Narrative (Details) - USD ($) | 12 Months Ended | |||||||||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Oct. 31, 2017 | Jul. 31, 2017 | Dec. 31, 2015 | Oct. 31, 2013 | Dec. 31, 2007 | Dec. 31, 1998 | Dec. 31, 1994 | |
Debt Instrument [Line Items] | ||||||||||||
Long-term debt | $ 2,245,000,000 | |||||||||||
Maximum borrowing capacity | $ 3,835,000,000 | |||||||||||
Non-operating indebtedness of subsidiaries to total capitalization, maximum | 7.50% | |||||||||||
Five-year revolving credit facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Maximum borrowing capacity | $ 2,000,000,000 | |||||||||||
Banking regulation, mortgage banking, net worth, minimum | $ 8,626,000,000 | |||||||||||
Percentage of aggregate net proceeds of equity issuances | 50% | |||||||||||
Debt to capital ratio (low end of range) | 35% | |||||||||||
Debt to capital ratio (high end of range) | 100% | |||||||||||
Surplus Note9.76 Due2024 [Member] | Subordinated Debt | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Surplus notes | $ 0 | $ 50,000,000 | $ 50,000,000 | |||||||||
Stated interest rate | 9.76% | |||||||||||
Surplus Note6.56 Due2028 [Member] | Subordinated Debt | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Surplus notes | $ 500,000,000 | 500,000,000 | $ 500,000,000 | |||||||||
Stated interest rate | 6.56% | |||||||||||
Capital surplus repayment threshold | $ 2,300,000,000 | |||||||||||
Surplus Note111 Bps Due2028 [Member] | Subordinated Debt | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Surplus notes | $ 71,000,000 | 71,000,000 | $ 71,000,000 | |||||||||
Surplus Note111 Bps Due2028 [Member] | Subordinated Debt | SOFR | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Variable rate | 1.11% | |||||||||||
Surplus Note226 Bps Due2028 [Member] | Subordinated Debt | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Surplus notes | $ 544,000,000 | 568,000,000 | ||||||||||
Debt instrument, face amount | 287,000,000 | |||||||||||
Long-term debt | $ 544,000,000 | |||||||||||
Surplus Note226 Bps Due2028 [Member] | Subordinated Debt | SOFR | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Variable rate | 2.26% | |||||||||||
Surplus Note6.03 Due2028 [Member] | Subordinated Debt | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Surplus notes | $ 750,000,000 | 750,000,000 | $ 750,000,000 | |||||||||
Stated interest rate | 6.03% | |||||||||||
Capital surplus repayment threshold | $ 2,400,000,000 | |||||||||||
Surplus Note200 Bps Due2035 [Member] | Subordinated Debt | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Surplus notes | $ 30,000,000 | 30,000,000 | $ 30,000,000 | |||||||||
Surplus Note200 Bps Due2035 [Member] | Subordinated Debt | SOFR | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Variable rate | 2% | |||||||||||
Surplus Note155 Bps Due2037 [Member] | Subordinated Debt | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Surplus notes | $ 25,000,000 | 25,000,000 | $ 25,000,000 | |||||||||
Surplus Note155 Bps Due2037 [Member] | Subordinated Debt | SOFR | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Variable rate | 1.55% | |||||||||||
Surplus Note4.20 Due2037 [Member] | Subordinated Debt | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Surplus notes | $ 50,000,000 | 50,000,000 | $ 50,000,000 | |||||||||
Stated interest rate | 4.20% | |||||||||||
Surplus Note100 Bps Due2037 [Member] | Subordinated Debt | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Surplus notes | $ 154,000,000 | 154,000,000 | ||||||||||
Debt instrument, face amount | $ 375,000,000 | |||||||||||
Long-term debt | $ 154,000,000 | |||||||||||
Surplus Note100 Bps Due2037 [Member] | Subordinated Debt | SOFR | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Variable rate | 1% | |||||||||||
Surplus Note4.50 Due2038 [Member] | Subordinated Debt | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Surplus notes | $ 13,000,000 | 13,000,000 | $ 13,000,000 | |||||||||
Stated interest rate | 4.50% | |||||||||||
Surplus Notes4.225 Due2037 [Member] | Subordinated Debt | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Surplus notes | $ 28,000,000 | 28,000,000 | $ 28,000,000 | |||||||||
Stated interest rate | 4.225% | |||||||||||
Surplus Notes4.00 Due2037 [Member] | Subordinated Debt | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Surplus notes | $ 30,000,000 | $ 30,000,000 | $ 30,000,000 | |||||||||
Stated interest rate | 4% |
Short-Term and Long-Term Debt_4
Short-Term and Long-Term Debt - Credit Facilities and Letters of Credit (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Line of Credit Facility [Line Items] | |
Maximum Available | $ 3,835 |
LOCs Issued | 1,892 |
Five-year revolving credit facility | |
Line of Credit Facility [Line Items] | |
Maximum Available | 2,000 |
LOCs Issued | 116 |
LOC facility due August 2031 | |
Line of Credit Facility [Line Items] | |
Maximum Available | 976 |
LOCs Issued | 917 |
LOC facility due October 2031 | |
Line of Credit Facility [Line Items] | |
Maximum Available | 859 |
LOCs Issued | $ 859 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Carrying and Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
ASSETS | ||
Fixed maturity AFS securities | $ 82,300 | $ 99,465 |
Trading securities | 2,321 | 3,446 |
Equity securities | 306 | 427 |
Mortgage loans on real estate | 18,873 | 18,211 |
Derivative investments | 6,305 | 3,519 |
Other investments | 4,757 | 3,577 |
Market risk benefit assets | 3,894 | 2,807 |
Policyholder account balances: | ||
MRB liabilities | $ (1,716) | $ (2,078) |
Other liabilities: | ||
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Other liabilities | Other liabilities |
Carrying Value | ||
ASSETS | ||
Trading securities | $ 2,321 | $ 3,446 |
Equity securities | 306 | 427 |
Mortgage loans on real estate | 18,873 | 18,211 |
Derivative investments | 6,305 | 3,519 |
Other investments | 4,757 | 3,577 |
Cash and invested cash | 3,193 | 2,499 |
Market risk benefit assets | 3,894 | 2,807 |
Other assets: | ||
Separate account assets | 158,257 | 143,536 |
Policyholder account balances: | ||
Funds withheld reinsurance liabilities – reinsurance-related embedded derivatives | 493 | 681 |
MRB liabilities | (1,716) | (2,078) |
Short-term debt | (840) | (562) |
Long-term debt | (2,195) | (2,269) |
Fair Value | ||
ASSETS | ||
Trading securities | 2,321 | 3,446 |
Equity securities | 306 | 427 |
Mortgage loans on real estate | 17,330 | 16,477 |
Derivative investments | 6,305 | 3,519 |
Other investments | 4,757 | 3,577 |
Cash and invested cash | 3,193 | 2,499 |
Market risk benefit assets | 3,894 | 2,807 |
Other assets: | ||
Separate account assets | 158,257 | 143,536 |
Policyholder account balances: | ||
Funds withheld reinsurance liabilities – reinsurance-related embedded derivatives | 493 | 681 |
MRB liabilities | (1,716) | (2,078) |
Short-term debt | (841) | (562) |
Long-term debt | (2,125) | (2,166) |
Other Assets | Carrying Value | ||
Other assets: | ||
Ceded MRBs | 274 | 540 |
Indexed annuity ceded embedded derivatives | 940 | 525 |
LPR ceded derivative | 206 | 212 |
Other Assets | Fair Value | ||
Other assets: | ||
Ceded MRBs | 274 | 540 |
Indexed annuity ceded embedded derivatives | 940 | 525 |
LPR ceded derivative | 206 | 212 |
Policyholder account balances | Carrying Value | ||
Policyholder account balances: | ||
Account balances of certain investment contracts | (44,615) | (43,550) |
RILA, fixed annuity and IUL contracts | (9,077) | (4,783) |
Policyholder account balances | Fair Value | ||
Policyholder account balances: | ||
Account balances of certain investment contracts | (34,020) | (34,251) |
RILA, fixed annuity and IUL contracts | (9,077) | (4,783) |
Other liabilities | Carrying Value | ||
Other liabilities: | ||
Ceded MRBs | (1,149) | (246) |
Derivative liabilities | (356) | (254) |
Remaining guaranteed interest and similar contracts | (411) | (574) |
Other liabilities | Fair Value | ||
Other liabilities: | ||
Ceded MRBs | (1,149) | (246) |
Derivative liabilities | (356) | (254) |
Remaining guaranteed interest and similar contracts | (411) | (574) |
Fixed maturity AFS securities, at fair value | Carrying Value | ||
ASSETS | ||
Fixed maturity AFS securities | 82,300 | 99,465 |
Fixed maturity AFS securities, at fair value | Fair Value | ||
ASSETS | ||
Fixed maturity AFS securities | $ 82,300 | $ 99,465 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Schedule of Mortgage Loans With Election of Fair Value Option (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value | $ 288 | $ 487 |
Commercial | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value | 288 | 487 |
Aggregate contractual principal | $ 326 | $ 514 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | $ 263,539 | $ 260,508 |
Liabilities | 16,827 | 9,695 |
Fair Value, Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 0 |
Liabilities | 0 | 0 |
Commercial | ||
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 of Financial Instr_6
Fair Value of Financial Instruments - Fair Value of Assets and Liabilities on a Recurring Basis (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | $ 263,539 | $ 260,508 |
Liabilities | (16,827) | (9,695) |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 822 | 784 |
Liabilities | 0 | 0 |
Significant Observable Inputs (Level 2) | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 248,140 | 247,426 |
Liabilities | (4,299) | (1,985) |
Significant Unobservable Inputs (Level 3) | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 14,577 | 12,298 |
Liabilities | (12,528) | (7,710) |
Corporate bonds | Fixed maturity AFS securities, at fair value | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 63,866 | 79,166 |
Corporate bonds | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fixed maturity AFS securities, at fair value | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 0 | 0 |
Corporate bonds | Significant Observable Inputs (Level 2) | Fixed maturity AFS securities, at fair value | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 57,397 | 73,980 |
Corporate bonds | Significant Unobservable Inputs (Level 3) | Fixed maturity AFS securities, at fair value | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 6,469 | 5,186 |
U.S. government bonds | Fixed maturity AFS securities, at fair value | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 393 | 351 |
U.S. government bonds | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fixed maturity AFS securities, at fair value | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 373 | 332 |
U.S. government bonds | Significant Observable Inputs (Level 2) | Fixed maturity AFS securities, at fair value | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 20 | 19 |
U.S. government bonds | Significant Unobservable Inputs (Level 3) | Fixed maturity AFS securities, at fair value | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 0 | 0 |
State and municipal bonds | Fixed maturity AFS securities, at fair value | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 2,542 | 4,885 |
State and municipal bonds | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fixed maturity AFS securities, at fair value | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 0 | 0 |
State and municipal bonds | Significant Observable Inputs (Level 2) | Fixed maturity AFS securities, at fair value | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 2,537 | 4,850 |
State and municipal bonds | Significant Unobservable Inputs (Level 3) | Fixed maturity AFS securities, at fair value | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 5 | 35 |
Foreign government bonds | Fixed maturity AFS securities, at fair value | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 278 | 311 |
Foreign government bonds | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fixed maturity AFS securities, at fair value | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 0 | 0 |
Foreign government bonds | Significant Observable Inputs (Level 2) | Fixed maturity AFS securities, at fair value | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 278 | 311 |
Foreign government bonds | Significant Unobservable Inputs (Level 3) | Fixed maturity AFS securities, at fair value | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 0 | 0 |
RMBS | Fixed maturity AFS securities, at fair value | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 1,602 | 1,836 |
RMBS | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fixed maturity AFS securities, at fair value | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 0 | 0 |
RMBS | Significant Observable Inputs (Level 2) | Fixed maturity AFS securities, at fair value | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 1,589 | 1,835 |
RMBS | Significant Unobservable Inputs (Level 3) | Fixed maturity AFS securities, at fair value | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 13 | 1 |
CMBS | Fixed maturity AFS securities, at fair value | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 1,344 | 1,667 |
CMBS | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fixed maturity AFS securities, at fair value | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 0 | 0 |
CMBS | Significant Observable Inputs (Level 2) | Fixed maturity AFS securities, at fair value | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 1,336 | 1,667 |
CMBS | Significant Unobservable Inputs (Level 3) | Fixed maturity AFS securities, at fair value | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 8 | 0 |
ABS | Fixed maturity AFS securities, at fair value | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 12,043 | 10,899 |
ABS | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fixed maturity AFS securities, at fair value | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 0 | 0 |
ABS | Significant Observable Inputs (Level 2) | Fixed maturity AFS securities, at fair value | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 10,559 | 9,782 |
ABS | Significant Unobservable Inputs (Level 3) | Fixed maturity AFS securities, at fair value | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 1,484 | 1,117 |
Hybrid and redeemable preferred securities | Fixed maturity AFS securities, at fair value | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 232 | 350 |
Hybrid and redeemable preferred securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fixed maturity AFS securities, at fair value | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 46 | 40 |
Hybrid and redeemable preferred securities | Significant Observable Inputs (Level 2) | Fixed maturity AFS securities, at fair value | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 138 | 261 |
Hybrid and redeemable preferred securities | Significant Unobservable Inputs (Level 3) | Fixed maturity AFS securities, at fair value | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 48 | 49 |
Trading securities | Fixed maturity AFS securities, at fair value | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 2,321 | 3,446 |
Trading securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fixed maturity AFS securities, at fair value | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 0 | 0 |
Trading securities | Significant Observable Inputs (Level 2) | Fixed maturity AFS securities, at fair value | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 2,037 | 2,865 |
Trading securities | Significant Unobservable Inputs (Level 3) | Fixed maturity AFS securities, at fair value | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 284 | 581 |
Equity securities | Fixed maturity AFS securities, at fair value | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 306 | 427 |
Equity securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fixed maturity AFS securities, at fair value | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 1 | 0 |
Equity securities | Significant Observable Inputs (Level 2) | Fixed maturity AFS securities, at fair value | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 263 | 274 |
Equity securities | Significant Unobservable Inputs (Level 3) | Fixed maturity AFS securities, at fair value | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 42 | 153 |
Mortgage loans on real estate | Fixed maturity AFS securities, at fair value | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 288 | 487 |
Mortgage loans on real estate | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fixed maturity AFS securities, at fair value | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 0 | 0 |
Mortgage loans on real estate | Significant Observable Inputs (Level 2) | Fixed maturity AFS securities, at fair value | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 0 | 0 |
Mortgage loans on real estate | Significant Unobservable Inputs (Level 3) | Fixed maturity AFS securities, at fair value | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 288 | 487 |
Derivative investments | Fixed maturity AFS securities, at fair value | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 11,327 | 6,534 |
Derivative investments | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fixed maturity AFS securities, at fair value | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 0 | 0 |
Derivative investments | Significant Observable Inputs (Level 2) | Fixed maturity AFS securities, at fair value | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 10,705 | 5,929 |
Derivative investments | Significant Unobservable Inputs (Level 3) | Fixed maturity AFS securities, at fair value | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 622 | 605 |
Other investments | Fixed maturity AFS securities, at fair value | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 233 | 30 |
Other investments | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fixed maturity AFS securities, at fair value | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 0 | 0 |
Other investments | Significant Observable Inputs (Level 2) | Fixed maturity AFS securities, at fair value | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 233 | 30 |
Other investments | Significant Unobservable Inputs (Level 3) | Fixed maturity AFS securities, at fair value | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 0 | 0 |
Cash and invested cash | Fixed maturity AFS securities, at fair value | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 3,193 | 2,499 |
Cash and invested cash | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fixed maturity AFS securities, at fair value | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 0 | 0 |
Cash and invested cash | Significant Observable Inputs (Level 2) | Fixed maturity AFS securities, at fair value | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 3,193 | 2,499 |
Cash and invested cash | Significant Unobservable Inputs (Level 3) | Fixed maturity AFS securities, at fair value | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 0 | 0 |
MRB assets | Fixed maturity AFS securities, at fair value | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 3,894 | 2,807 |
MRB assets | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fixed maturity AFS securities, at fair value | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 0 | 0 |
MRB assets | Significant Observable Inputs (Level 2) | Fixed maturity AFS securities, at fair value | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 0 | 0 |
MRB assets | Significant Unobservable Inputs (Level 3) | Fixed maturity AFS securities, at fair value | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 3,894 | 2,807 |
Ceded MRBs | Other Assets | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 274 | 540 |
Ceded MRBs | Other liabilities | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Liabilities | (1,149) | (246) |
Ceded MRBs | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other Assets | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 0 | 0 |
Ceded MRBs | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other liabilities | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Liabilities | 0 | 0 |
Ceded MRBs | Significant Observable Inputs (Level 2) | Other Assets | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 0 | 0 |
Ceded MRBs | Significant Observable Inputs (Level 2) | Other liabilities | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Liabilities | 0 | 0 |
Ceded MRBs | Significant Unobservable Inputs (Level 3) | Other Assets | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 274 | 540 |
Ceded MRBs | Significant Unobservable Inputs (Level 3) | Other liabilities | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Liabilities | (1,149) | (246) |
Indexed annuity ceded embedded derivatives | Other Assets | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 940 | 525 |
Indexed annuity ceded embedded derivatives | Policyholder account balances | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Liabilities | (9,077) | (4,783) |
Indexed annuity ceded embedded derivatives | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other Assets | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 0 | 0 |
Indexed annuity ceded embedded derivatives | Quoted Prices in Active Markets for Identical Assets (Level 1) | Policyholder account balances | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Liabilities | 0 | 0 |
Indexed annuity ceded embedded derivatives | Significant Observable Inputs (Level 2) | Other Assets | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 0 | 0 |
Indexed annuity ceded embedded derivatives | Significant Observable Inputs (Level 2) | Policyholder account balances | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Liabilities | 0 | 0 |
Indexed annuity ceded embedded derivatives | Significant Unobservable Inputs (Level 3) | Other Assets | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 940 | 525 |
Indexed annuity ceded embedded derivatives | Significant Unobservable Inputs (Level 3) | Policyholder account balances | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Liabilities | (9,077) | (4,783) |
LPR ceded derivative | Other Assets | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 206 | 212 |
LPR ceded derivative | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other Assets | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 0 | 0 |
LPR ceded derivative | Significant Observable Inputs (Level 2) | Other Assets | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 0 | 0 |
LPR ceded derivative | Significant Unobservable Inputs (Level 3) | Other Assets | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 206 | 212 |
Separate account assets | Other Assets | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 158,257 | 143,536 |
Separate account assets | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other Assets | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 402 | 412 |
Separate account assets | Significant Observable Inputs (Level 2) | Other Assets | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 157,855 | 143,124 |
Separate account assets | Significant Unobservable Inputs (Level 3) | Other Assets | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 0 | 0 |
Reinsurance-related settlements | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Liabilities | 493 | 681 |
Reinsurance-related settlements | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Liabilities | 0 | 0 |
Reinsurance-related settlements | Significant Observable Inputs (Level 2) | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Liabilities | 493 | 681 |
Reinsurance-related settlements | Significant Unobservable Inputs (Level 3) | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Liabilities | 0 | 0 |
MRB liabilities | Policyholder account balances | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Liabilities | (1,716) | (2,078) |
MRB liabilities | Quoted Prices in Active Markets for Identical Assets (Level 1) | Policyholder account balances | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Liabilities | 0 | 0 |
MRB liabilities | Significant Observable Inputs (Level 2) | Policyholder account balances | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Liabilities | 0 | 0 |
MRB liabilities | Significant Unobservable Inputs (Level 3) | Policyholder account balances | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Liabilities | (1,716) | (2,078) |
Derivative liabilities | Other liabilities | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Liabilities | (5,378) | (3,269) |
Derivative liabilities | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other liabilities | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Liabilities | 0 | 0 |
Derivative liabilities | Significant Observable Inputs (Level 2) | Other liabilities | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Liabilities | (4,792) | (2,666) |
Derivative liabilities | Significant Unobservable Inputs (Level 3) | Other liabilities | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Liabilities | $ (586) | $ (603) |
Fair Value of Financial Instr_7
Fair Value of Financial Instruments - Fair Value Measured on a Recurring Basis Reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Abstract] | |||
Beginning Fair Value | $ 3,859 | $ 10,296 | $ 15,085 |
Items Included in Net Income | (4,405) | (2,198) | (3,760) |
Gains (Losses) in OCI and Other | 44 | (1,693) | (175) |
Issuances, Sales, Maturities, Settlements, Calls, Net | 702 | 495 | 1,859 |
Transfers Into or Out of Level 3, Net | (329) | (3,041) | (2,713) |
Ending Fair Value | $ (129) | $ 3,859 | $ 10,296 |
Fair Value, Asset, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Net income (loss) | Net income (loss) | Net income (loss) |
Fair Value, Asset, Recurring Basis, Unobservable Input Reconciliation, Asset, Gain (Loss), Statement of Other Comprehensive Income or Comprehensive Income [Extensible Enumeration] | Unrealized investment gain (loss) | Unrealized investment gain (loss) | Unrealized investment gain (loss) |
Corporate bonds | Fixed maturity AFS securities, at fair value | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Abstract] | |||
Beginning Fair Value | $ 5,186 | $ 8,801 | $ 7,761 |
Items Included in Net Income | (17) | 1 | 3 |
Gains (Losses) in OCI and Other | 28 | (1,542) | (182) |
Issuances, Sales, Maturities, Settlements, Calls, Net | 1,284 | 592 | 1,189 |
Transfers Into or Out of Level 3, Net | (12) | (2,666) | 30 |
Ending Fair Value | 6,469 | 5,186 | 8,801 |
U.S. government bonds | Fixed maturity AFS securities, at fair value | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Abstract] | |||
Beginning Fair Value | 0 | 5 | |
Items Included in Net Income | 0 | ||
Gains (Losses) in OCI and Other | 0 | ||
Issuances, Sales, Maturities, Settlements, Calls, Net | (5) | ||
Transfers Into or Out of Level 3, Net | 0 | ||
Ending Fair Value | 0 | ||
State and municipal bonds | Fixed maturity AFS securities, at fair value | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Abstract] | |||
Beginning Fair Value | 35 | 0 | |
Items Included in Net Income | (4) | 0 | |
Gains (Losses) in OCI and Other | 4 | (1) | |
Issuances, Sales, Maturities, Settlements, Calls, Net | (30) | 0 | |
Transfers Into or Out of Level 3, Net | 0 | 36 | |
Ending Fair Value | 5 | 35 | 0 |
Foreign government bonds | Fixed maturity AFS securities, at fair value | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Abstract] | |||
Beginning Fair Value | 0 | 41 | 74 |
Items Included in Net Income | 0 | 0 | |
Gains (Losses) in OCI and Other | (6) | (11) | |
Issuances, Sales, Maturities, Settlements, Calls, Net | (30) | 80 | |
Transfers Into or Out of Level 3, Net | (5) | (102) | |
Ending Fair Value | 0 | 41 | |
RMBS | Fixed maturity AFS securities, at fair value | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Abstract] | |||
Beginning Fair Value | 1 | 3 | 2 |
Items Included in Net Income | 0 | 0 | 0 |
Gains (Losses) in OCI and Other | 0 | 1 | 0 |
Issuances, Sales, Maturities, Settlements, Calls, Net | 5 | 21 | 2 |
Transfers Into or Out of Level 3, Net | 7 | (24) | (1) |
Ending Fair Value | 13 | 1 | 3 |
CMBS | Fixed maturity AFS securities, at fair value | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Abstract] | |||
Beginning Fair Value | 0 | 0 | 1 |
Items Included in Net Income | 0 | 0 | (1) |
Gains (Losses) in OCI and Other | 0 | 0 | 0 |
Issuances, Sales, Maturities, Settlements, Calls, Net | (4) | 17 | 8 |
Transfers Into or Out of Level 3, Net | 12 | (17) | (8) |
Ending Fair Value | 8 | 0 | 0 |
ABS | Fixed maturity AFS securities, at fair value | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Abstract] | |||
Beginning Fair Value | 1,117 | 870 | 570 |
Items Included in Net Income | 0 | 0 | 1 |
Gains (Losses) in OCI and Other | 9 | (113) | (9) |
Issuances, Sales, Maturities, Settlements, Calls, Net | 733 | 676 | 602 |
Transfers Into or Out of Level 3, Net | (375) | (316) | (294) |
Ending Fair Value | 1,484 | 1,117 | 870 |
Hybrid and redeemable preferred securities | Fixed maturity AFS securities, at fair value | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Abstract] | |||
Beginning Fair Value | 49 | 90 | 103 |
Items Included in Net Income | 0 | (4) | 0 |
Gains (Losses) in OCI and Other | (2) | (21) | 25 |
Issuances, Sales, Maturities, Settlements, Calls, Net | (2) | (12) | (38) |
Transfers Into or Out of Level 3, Net | 3 | (4) | 0 |
Ending Fair Value | 48 | 49 | 90 |
Trading securities | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Abstract] | |||
Beginning Fair Value | 581 | 828 | 643 |
Items Included in Net Income | 17 | (80) | (3) |
Gains (Losses) in OCI and Other | 0 | 0 | 0 |
Issuances, Sales, Maturities, Settlements, Calls, Net | (313) | (152) | 210 |
Transfers Into or Out of Level 3, Net | (1) | (15) | (22) |
Ending Fair Value | 284 | 581 | 828 |
Equity securities | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Abstract] | |||
Beginning Fair Value | 153 | 91 | 57 |
Items Included in Net Income | (19) | 52 | 38 |
Gains (Losses) in OCI and Other | 0 | 0 | 0 |
Issuances, Sales, Maturities, Settlements, Calls, Net | (98) | 25 | (4) |
Transfers Into or Out of Level 3, Net | 6 | (15) | 0 |
Ending Fair Value | 42 | 153 | 91 |
Mortgage loans on real estate | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Abstract] | |||
Beginning Fair Value | 487 | 739 | 832 |
Items Included in Net Income | (7) | (20) | 11 |
Gains (Losses) in OCI and Other | 5 | (5) | 5 |
Issuances, Sales, Maturities, Settlements, Calls, Net | (197) | (227) | (109) |
Transfers Into or Out of Level 3, Net | 0 | 0 | 0 |
Ending Fair Value | 288 | 487 | 739 |
Derivative investments | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Abstract] | |||
Beginning Fair Value | 2 | 21 | 1,542 |
Items Included in Net Income | (13) | 2 | 1,255 |
Gains (Losses) in OCI and Other | 0 | (6) | (3) |
Issuances, Sales, Maturities, Settlements, Calls, Net | 16 | 0 | (139) |
Transfers Into or Out of Level 3, Net | 31 | (15) | (2,634) |
Ending Fair Value | 36 | 2 | 21 |
Ceded MRBs | Other Assets | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Abstract] | |||
Beginning Fair Value | 540 | 4,114 | 6,539 |
Items Included in Net Income | (266) | (3,574) | (2,425) |
Gains (Losses) in OCI and Other | 0 | 0 | 0 |
Issuances, Sales, Maturities, Settlements, Calls, Net | 0 | 0 | 0 |
Transfers Into or Out of Level 3, Net | 0 | 0 | 0 |
Ending Fair Value | 274 | 540 | 4,114 |
Ceded MRBs | Other liabilities | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Abstract] | |||
Beginning Fair Value | (246) | (17) | 0 |
Items Included in Net Income | (903) | (229) | (17) |
Gains (Losses) in OCI and Other | 0 | 0 | 0 |
Issuances, Sales, Maturities, Settlements, Calls, Net | 0 | 0 | 0 |
Transfers Into or Out of Level 3, Net | 0 | 0 | 0 |
Ending Fair Value | (1,149) | (246) | (17) |
Indexed annuity ceded embedded derivatives | Other Assets | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Abstract] | |||
Beginning Fair Value | 525 | 528 | 550 |
Items Included in Net Income | 6 | (215) | 87 |
Gains (Losses) in OCI and Other | 0 | 0 | 0 |
Issuances, Sales, Maturities, Settlements, Calls, Net | 409 | 212 | (109) |
Transfers Into or Out of Level 3, Net | 0 | 0 | 0 |
Ending Fair Value | 940 | 525 | 528 |
Indexed annuity ceded embedded derivatives | Policyholder account balances | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Abstract] | |||
Beginning Fair Value | (4,783) | (6,131) | (3,594) |
Items Included in Net Income | (3,193) | 1,975 | (2,709) |
Gains (Losses) in OCI and Other | 0 | 0 | 0 |
Issuances, Sales, Maturities, Settlements, Calls, Net | (1,101) | (627) | 172 |
Transfers Into or Out of Level 3, Net | 0 | 0 | 0 |
Ending Fair Value | (9,077) | (4,783) | (6,131) |
LPR ceded derivative | Other Assets | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Abstract] | |||
Beginning Fair Value | 212 | 318 | 0 |
Items Included in Net Income | (6) | (106) | 0 |
Gains (Losses) in OCI and Other | 0 | 0 | 0 |
Issuances, Sales, Maturities, Settlements, Calls, Net | 0 | 0 | 0 |
Transfers Into or Out of Level 3, Net | 0 | 0 | 318 |
Ending Fair Value | $ 206 | $ 212 | $ 318 |
Fair Value of Financial Instr_8
Fair Value of Financial Instruments - Schedule of Investment Holdings Movements (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | |||
Issuances | $ 2,327 | $ 2,041 | $ 3,112 |
Sales | (696) | (636) | (390) |
Maturities | (37) | (111) | (329) |
Settlements | (873) | (747) | (474) |
Calls | (19) | (52) | (60) |
Total | 702 | 495 | 1,859 |
Corporate bonds | Fixed maturity AFS securities, at fair value | |||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | |||
Issuances | 2,035 | 1,335 | 1,861 |
Sales | (334) | (398) | (110) |
Maturities | (34) | (81) | (109) |
Settlements | (372) | (231) | (423) |
Calls | (11) | (33) | (30) |
Total | 1,284 | 592 | 1,189 |
State and municipal bonds | Fixed maturity AFS securities, at fair value | |||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | |||
Issuances | 0 | ||
Sales | (30) | ||
Maturities | 0 | ||
Settlements | 0 | ||
Calls | 0 | ||
Total | (30) | 0 | |
U.S. government bonds | Fixed maturity AFS securities, at fair value | |||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | |||
Issuances | 0 | ||
Sales | 0 | ||
Maturities | (5) | ||
Settlements | 0 | ||
Calls | 0 | ||
Total | (5) | ||
Foreign government bonds | Fixed maturity AFS securities, at fair value | |||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | |||
Issuances | 0 | 80 | |
Sales | 0 | 0 | |
Maturities | (30) | 0 | |
Settlements | 0 | 0 | |
Calls | 0 | 0 | |
Total | (30) | 80 | |
RMBS | Fixed maturity AFS securities, at fair value | |||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | |||
Issuances | 5 | 21 | 2 |
Sales | 0 | 0 | 0 |
Maturities | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 |
Calls | 0 | 0 | 0 |
Total | 5 | 21 | 2 |
CMBS | Fixed maturity AFS securities, at fair value | |||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | |||
Issuances | 0 | 17 | 8 |
Sales | 0 | 0 | 0 |
Maturities | 0 | 0 | 0 |
Settlements | (4) | 0 | 0 |
Calls | 0 | 0 | 0 |
Total | (4) | 17 | 8 |
ABS | Fixed maturity AFS securities, at fair value | |||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | |||
Issuances | 971 | 918 | 835 |
Sales | (2) | 0 | 0 |
Maturities | 0 | 0 | 0 |
Settlements | (230) | (235) | (233) |
Calls | (6) | (7) | 0 |
Total | 733 | 676 | 602 |
Hybrid and redeemable preferred securities | Fixed maturity AFS securities, at fair value | |||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | |||
Issuances | 0 | 0 | 12 |
Sales | 0 | 0 | (20) |
Maturities | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 |
Calls | (2) | (12) | (30) |
Total | (2) | (12) | (38) |
Trading securities | |||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | |||
Issuances | 0 | 287 | 383 |
Sales | (231) | (229) | (25) |
Maturities | 0 | 0 | 0 |
Settlements | (82) | (210) | (148) |
Calls | 0 | 0 | 0 |
Total | (313) | (152) | 210 |
Equity securities | |||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | |||
Issuances | 1 | 34 | 6 |
Sales | (99) | (9) | (10) |
Maturities | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 |
Calls | 0 | 0 | 0 |
Total | (98) | 25 | (4) |
Mortgage loans on real estate | |||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | |||
Issuances | 5 | 15 | 96 |
Sales | 0 | 0 | (101) |
Maturities | 0 | 0 | (26) |
Settlements | (202) | (242) | (78) |
Calls | 0 | 0 | 0 |
Total | (197) | (227) | (109) |
Derivative investments | |||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | |||
Issuances | 19 | 174 | |
Sales | 0 | (124) | |
Maturities | (3) | (189) | |
Settlements | 0 | 0 | |
Calls | 0 | 0 | |
Total | 16 | 0 | (139) |
Indexed annuity ceded embedded derivatives | Other Assets | |||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | |||
Issuances | 404 | 124 | 55 |
Sales | 0 | 0 | 0 |
Maturities | 0 | 0 | 0 |
Settlements | 5 | 88 | (164) |
Calls | 0 | 0 | 0 |
Total | 409 | 212 | (109) |
Indexed annuity ceded embedded derivatives | Policyholder account balances | |||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | |||
Total | (1,101) | (627) | 172 |
Indexed annuity ceded embedded derivatives | Policyholder account balances | |||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | |||
Issuances | (1,113) | (710) | (400) |
Sales | 0 | 0 | 0 |
Maturities | 0 | 0 | 0 |
Settlements | 12 | 83 | 572 |
Calls | 0 | 0 | 0 |
Total | $ (1,101) | $ (627) | $ 172 |
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 | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Fair Value Assets and Liabilities Measured on Recurring Basis Level 3 Activity [Line Items] | |||
Changes in unrealized gains (losses) included in net income | $ 1,030 | $ (605) | $ 2,681 |
Fair Value, Liability, Recurring Basis, Still Held, Unrealized Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Realized gain (loss) | Realized gain (loss) | Realized gain (loss) |
Trading securities | |||
Fair Value Assets and Liabilities Measured on Recurring Basis Level 3 Activity [Line Items] | |||
Changes in unrealized gains (losses) included in net income | $ 8 | $ (81) | $ 4 |
Equity securities | |||
Fair Value Assets and Liabilities Measured on Recurring Basis Level 3 Activity [Line Items] | |||
Changes in unrealized gains (losses) included in net income | (16) | 54 | 40 |
Mortgage loans on real estate | |||
Fair Value Assets and Liabilities Measured on Recurring Basis Level 3 Activity [Line Items] | |||
Changes in unrealized gains (losses) included in net income | (8) | (20) | 12 |
Derivative investments | |||
Fair Value Assets and Liabilities Measured on Recurring Basis Level 3 Activity [Line Items] | |||
Changes in unrealized gains (losses) included in net income | 1 | 2 | 1,051 |
MRBs | |||
Fair Value Assets and Liabilities Measured on Recurring Basis Level 3 Activity [Line Items] | |||
Changes in unrealized gains (losses) included in net income | 1,071 | (359) | 1,530 |
Indexed annuity ceded embedded derivatives | |||
Fair Value Assets and Liabilities Measured on Recurring Basis Level 3 Activity [Line Items] | |||
Changes in unrealized gains (losses) included in net income | (20) | (95) | 44 |
Other assets – LPR ceded derivative | |||
Fair Value Assets and Liabilities Measured on Recurring Basis Level 3 Activity [Line Items] | |||
Changes in unrealized gains (losses) included in net income | $ (6) | $ (106) | $ 0 |
Fair Value of Financial Inst_10
Fair Value of Financial Instruments - Changes in Unrealized Gains (Losses) Included in OCI (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Fair Value Assets and Liabilities Measured on Recurring Basis Level 3 Activity [Line Items] | |||
Unrealized gains (losses) included in OCI, net | $ 16 | $ (1,702) | $ (172) |
Fair Value, Asset, Recurring Basis, Still Held, Unrealized Gain (Loss), Statement of Other Comprehensive Income or Comprehensive Income [Extensible Enumeration] | Unrealized investment gain (loss) | Unrealized investment gain (loss) | Unrealized investment gain (loss) |
Corporate bonds | |||
Fair Value Assets and Liabilities Measured on Recurring Basis Level 3 Activity [Line Items] | |||
Unrealized gains (losses) included in OCI, net | $ 7 | $ (1,553) | $ (183) |
State and municipal bonds | |||
Fair Value Assets and Liabilities Measured on Recurring Basis Level 3 Activity [Line Items] | |||
Unrealized gains (losses) included in OCI, net | 3 | (1) | 0 |
Foreign government bonds | |||
Fair Value Assets and Liabilities Measured on Recurring Basis Level 3 Activity [Line Items] | |||
Unrealized gains (losses) included in OCI, net | 0 | (7) | (10) |
ABS | |||
Fair Value Assets and Liabilities Measured on Recurring Basis Level 3 Activity [Line Items] | |||
Unrealized gains (losses) included in OCI, net | 3 | (115) | (9) |
Hybrid and redeemable preferred securities | |||
Fair Value Assets and Liabilities Measured on Recurring Basis Level 3 Activity [Line Items] | |||
Unrealized gains (losses) included in OCI, net | (1) | (21) | 26 |
Mortgage loans on real estate | |||
Fair Value Assets and Liabilities Measured on Recurring Basis Level 3 Activity [Line Items] | |||
Unrealized gains (losses) included in OCI, net | $ 4 | $ (5) | $ 4 |
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 | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | |||
Transfers Into Level 3 | $ 279 | $ 352 | $ 554 |
Transfers Out of Level 3 | (608) | (3,393) | (3,267) |
Total | (329) | (3,041) | (2,713) |
Corporate bonds | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | |||
Transfers Into Level 3 | 194 | 296 | 164 |
Transfers Out of Level 3 | (206) | (2,962) | (134) |
Total | (12) | (2,666) | 30 |
State and municipal bonds | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | |||
Transfers Into Level 3 | 36 | ||
Transfers Out of Level 3 | 0 | ||
Total | 36 | ||
Foreign government bonds | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | |||
Transfers Into Level 3 | 0 | 0 | |
Transfers Out of Level 3 | (5) | (102) | |
Total | (5) | (102) | |
RMBS | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | |||
Transfers Into Level 3 | 12 | 0 | 0 |
Transfers Out of Level 3 | (5) | (24) | (1) |
Total | 7 | (24) | (1) |
CMBS | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | |||
Transfers Into Level 3 | 12 | 0 | 0 |
Transfers Out of Level 3 | 0 | (17) | (8) |
Total | 12 | (17) | (8) |
ABS | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | |||
Transfers Into Level 3 | 2 | 16 | 36 |
Transfers Out of Level 3 | (377) | (332) | (330) |
Total | (375) | (316) | (294) |
Hybrid and redeemable preferred securities | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | |||
Transfers Into Level 3 | 16 | 0 | |
Transfers Out of Level 3 | (13) | (4) | |
Total | 3 | (4) | |
Trading securities | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | |||
Transfers Into Level 3 | 6 | 4 | 12 |
Transfers Out of Level 3 | (7) | (19) | (34) |
Total | (1) | (15) | (22) |
Equity securities | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | |||
Transfers Into Level 3 | 6 | 0 | |
Transfers Out of Level 3 | 0 | (15) | |
Total | 6 | (15) | |
Derivative investments | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | |||
Transfers Into Level 3 | 31 | 0 | 24 |
Transfers Out of Level 3 | 0 | (15) | (2,658) |
Total | $ 31 | $ (15) | (2,634) |
Other assets – LPR ceded derivative | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | |||
Transfers Into Level 3 | 318 | ||
Transfers Out of Level 3 | 0 | ||
Total | $ 318 |
Fair Value of Financial Inst_12
Fair Value of Financial Instruments - Fair Value Inputs Quantitative Information (Details) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Assets | ||
Fixed maturity available-for-sale securities, at fair value | $ 82,300,000,000 | $ 99,465,000,000 |
Market risk benefit assets | 3,894,000,000 | 2,807,000,000 |
Liabilities | ||
Market risk benefit liabilities | (1,716,000,000) | (2,078,000,000) |
Corporate bonds | ||
Assets | ||
Fixed maturity available-for-sale securities, at fair value | 63,866,000,000 | 79,166,000,000 |
State and municipal bonds | ||
Assets | ||
Fixed maturity available-for-sale securities, at fair value | 2,542,000,000 | 4,885,000,000 |
CMBS | ||
Assets | ||
Fixed maturity available-for-sale securities, at fair value | 1,344,000,000 | 1,667,000,000 |
ABS | ||
Assets | ||
Fixed maturity available-for-sale securities, at fair value | 12,043,000,000 | 10,899,000,000 |
Hybrid and redeemable preferred securities | ||
Assets | ||
Fixed maturity available-for-sale securities, at fair value | 232,000,000 | $ 350,000,000 |
Minimum | Utilization of GLB Withdrawls | Other assets – ceded MRBs | ||
Assets | ||
Market risk benefit, measurement input | 0.85 | |
Minimum | Claims Utilization Factor | Other assets – ceded MRBs | ||
Assets | ||
Market risk benefit, measurement input | 0.60 | |
Minimum | Premiums Utilization Factor | Other assets – ceded MRBs | ||
Assets | ||
Market risk benefit, measurement input | 0.80 | |
Minimum | Non-Performance Risk | Other assets – ceded MRBs | ||
Assets | ||
Market risk benefit, measurement input | 0.0035 | |
Minimum | Volatility | Other assets – ceded MRBs | ||
Assets | ||
Market risk benefit, measurement input | 0.01 | |
Maximum | Utilization of GLB Withdrawls | Other assets – ceded MRBs | ||
Assets | ||
Market risk benefit, measurement input | 1 | |
Maximum | Claims Utilization Factor | Other assets – ceded MRBs | ||
Assets | ||
Market risk benefit, measurement input | 1 | |
Maximum | Premiums Utilization Factor | Other assets – ceded MRBs | ||
Assets | ||
Market risk benefit, measurement input | 1.15 | |
Maximum | Non-Performance Risk | Other assets – ceded MRBs | ||
Assets | ||
Market risk benefit, measurement input | 0.0241 | |
Maximum | Volatility | Other assets – ceded MRBs | ||
Assets | ||
Market risk benefit, measurement input | 0.28 | |
Weighted Average Range | Utilization of GLB Withdrawls | Other assets – ceded MRBs | ||
Assets | ||
Market risk benefit, measurement input | 0.94 | |
Weighted Average Range | Non-Performance Risk | Other assets – ceded MRBs | ||
Assets | ||
Market risk benefit, measurement input | 0.0173 | |
Weighted Average Range | Volatility | Other assets – ceded MRBs | ||
Assets | ||
Market risk benefit, measurement input | 0.1447 | |
Significant Unobservable Inputs (Level 3) | ||
Assets | ||
Equity securities | 5,000,000 | $ 4,000,000 |
Market risk benefit assets | 3,894,000,000 | 2,807,000,000 |
Liabilities | ||
Embedded derivative liability | (9,013,000,000) | (4,845,000,000) |
Market risk benefit liabilities | (1,716,000,000) | (2,078,000,000) |
Significant Unobservable Inputs (Level 3) | Corporate bonds | ||
Assets | ||
Fixed maturity available-for-sale securities, at fair value | 183,000,000 | 201,000,000 |
Significant Unobservable Inputs (Level 3) | State and municipal bonds | ||
Assets | ||
Fixed maturity available-for-sale securities, at fair value | 5,000,000 | 35,000,000 |
Significant Unobservable Inputs (Level 3) | CMBS | ||
Assets | ||
Fixed maturity available-for-sale securities, at fair value | 8,000,000 | |
Significant Unobservable Inputs (Level 3) | ABS | ||
Assets | ||
Fixed maturity available-for-sale securities, at fair value | 12,000,000 | 15,000,000 |
Significant Unobservable Inputs (Level 3) | Hybrid and redeemable preferred securities | ||
Assets | ||
Fixed maturity available-for-sale securities, at fair value | 7,000,000 | 3,000,000 |
Significant Unobservable Inputs (Level 3) | Other assets – ceded MRBs | ||
Assets | ||
Market risk benefit assets | 274,000,000 | 540,000,000 |
Significant Unobservable Inputs (Level 3) | Other assets - indexed annuity ceded embedded derivatives | ||
Assets | ||
Embedded derivative asset | 940,000,000 | 525,000,000 |
Significant Unobservable Inputs (Level 3) | Other assets - LPR ceded derivative | ||
Assets | ||
Embedded derivative asset | 206,000,000 | 212,000,000 |
Significant Unobservable Inputs (Level 3) | Other liabilities – ceded MRBs | ||
Liabilities | ||
Market risk benefit liabilities | $ (1,149,000,000) | $ (246,000,000) |
Significant Unobservable Inputs (Level 3) | Liquidity/Duration Adjustment | ||
Assets | ||
Equity securities, measurement input | 0.045 | |
Significant Unobservable Inputs (Level 3) | Liquidity/Duration Adjustment | Corporate bonds | ||
Assets | ||
Fixed maturity AFS and trading securities, measurement input | 0.021 | |
Significant Unobservable Inputs (Level 3) | Liquidity/Duration Adjustment | State and municipal bonds | ||
Assets | ||
Fixed maturity AFS and trading securities, measurement input | 0.023 | |
Significant Unobservable Inputs (Level 3) | Liquidity/Duration Adjustment | ABS | ||
Assets | ||
Fixed maturity AFS and trading securities, measurement input | 0.014 | |
Significant Unobservable Inputs (Level 3) | Liquidity/Duration Adjustment | Hybrid and redeemable preferred securities | ||
Assets | ||
Fixed maturity AFS and trading securities, measurement input | 0.015 | |
Significant Unobservable Inputs (Level 3) | Non-Performance Risk | Other assets - LPR ceded derivative | ||
Assets | ||
Embedded derivative asset, measurement input | 0.0175 | |
Significant Unobservable Inputs (Level 3) | Minimum | Liquidity/Duration Adjustment | ||
Assets | ||
Equity securities, measurement input | 0.045 | 0.045 |
Significant Unobservable Inputs (Level 3) | Minimum | Liquidity/Duration Adjustment | Corporate bonds | ||
Assets | ||
Fixed maturity AFS and trading securities, measurement input | (0.002) | (0.002) |
Significant Unobservable Inputs (Level 3) | Minimum | Liquidity/Duration Adjustment | State and municipal bonds | ||
Assets | ||
Fixed maturity AFS and trading securities, measurement input | 0.009 | 0.012 |
Significant Unobservable Inputs (Level 3) | Minimum | Liquidity/Duration Adjustment | CMBS | ||
Assets | ||
Fixed maturity AFS and trading securities, measurement input | 0.023 | |
Significant Unobservable Inputs (Level 3) | Minimum | Liquidity/Duration Adjustment | ABS | ||
Assets | ||
Fixed maturity AFS and trading securities, measurement input | 0.018 | 0.014 |
Significant Unobservable Inputs (Level 3) | Minimum | Liquidity/Duration Adjustment | Hybrid and redeemable preferred securities | ||
Assets | ||
Fixed maturity AFS and trading securities, measurement input | 0.014 | 0.015 |
Significant Unobservable Inputs (Level 3) | Minimum | Lapse | ||
Liabilities | ||
Embedded derivative liability, measurement input | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Minimum | Lapse | Other assets – ceded MRBs | ||
Assets | ||
Market risk benefit, measurement input | 0.01 | 0.01 |
Significant Unobservable Inputs (Level 3) | Minimum | Lapse | Other assets - indexed annuity ceded embedded derivatives | ||
Assets | ||
Embedded derivative asset, measurement input | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Minimum | Lapse | Other assets - LPR ceded derivative | ||
Assets | ||
Embedded derivative asset, measurement input | 0.001 | 0 |
Significant Unobservable Inputs (Level 3) | Minimum | Lapse | Other liabilities – ceded MRBs | ||
Assets | ||
Market risk benefit, measurement input | 0.01 | 0.01 |
Significant Unobservable Inputs (Level 3) | Minimum | Utilization of GLB Withdrawls | Other assets – ceded MRBs | ||
Assets | ||
Market risk benefit, measurement input | 0.85 | |
Significant Unobservable Inputs (Level 3) | Minimum | Utilization of GLB Withdrawls | Other liabilities – ceded MRBs | ||
Assets | ||
Market risk benefit, measurement input | 0.85 | 0.85 |
Significant Unobservable Inputs (Level 3) | Minimum | Claims Utilization Factor | Other assets – ceded MRBs | ||
Assets | ||
Market risk benefit, measurement input | 0.60 | |
Significant Unobservable Inputs (Level 3) | Minimum | Claims Utilization Factor | Other liabilities – ceded MRBs | ||
Assets | ||
Market risk benefit, measurement input | 0.60 | 0.60 |
Significant Unobservable Inputs (Level 3) | Minimum | Premiums Utilization Factor | Other assets – ceded MRBs | ||
Assets | ||
Market risk benefit, measurement input | 0.80 | |
Significant Unobservable Inputs (Level 3) | Minimum | Premiums Utilization Factor | Other liabilities – ceded MRBs | ||
Assets | ||
Market risk benefit, measurement input | 0.80 | 0.80 |
Significant Unobservable Inputs (Level 3) | Minimum | Non-Performance Risk | Other assets – ceded MRBs | ||
Assets | ||
Market risk benefit, measurement input | 0.0051 | |
Significant Unobservable Inputs (Level 3) | Minimum | Non-Performance Risk | Other assets - LPR ceded derivative | ||
Assets | ||
Embedded derivative asset, measurement input | 0.0051 | 0.0035 |
Significant Unobservable Inputs (Level 3) | Minimum | Non-Performance Risk | Other liabilities – ceded MRBs | ||
Assets | ||
Market risk benefit, measurement input | 0.0051 | 0.0035 |
Significant Unobservable Inputs (Level 3) | Minimum | Volatility | Other assets – ceded MRBs | ||
Assets | ||
Market risk benefit, measurement input | 0.01 | |
Significant Unobservable Inputs (Level 3) | Minimum | Volatility | Other liabilities – ceded MRBs | ||
Assets | ||
Market risk benefit, measurement input | 0.01 | 0.01 |
Significant Unobservable Inputs (Level 3) | Maximum | Liquidity/Duration Adjustment | ||
Assets | ||
Equity securities, measurement input | 0.045 | 0.045 |
Significant Unobservable Inputs (Level 3) | Maximum | Liquidity/Duration Adjustment | Corporate bonds | ||
Assets | ||
Fixed maturity AFS and trading securities, measurement input | 0.037 | 0.042 |
Significant Unobservable Inputs (Level 3) | Maximum | Liquidity/Duration Adjustment | State and municipal bonds | ||
Assets | ||
Fixed maturity AFS and trading securities, measurement input | 0.022 | 0.024 |
Significant Unobservable Inputs (Level 3) | Maximum | Liquidity/Duration Adjustment | CMBS | ||
Assets | ||
Fixed maturity AFS and trading securities, measurement input | 0.023 | |
Significant Unobservable Inputs (Level 3) | Maximum | Liquidity/Duration Adjustment | ABS | ||
Assets | ||
Fixed maturity AFS and trading securities, measurement input | 0.018 | 0.014 |
Significant Unobservable Inputs (Level 3) | Maximum | Liquidity/Duration Adjustment | Hybrid and redeemable preferred securities | ||
Assets | ||
Fixed maturity AFS and trading securities, measurement input | 0.015 | 0.015 |
Significant Unobservable Inputs (Level 3) | Maximum | Lapse | ||
Liabilities | ||
Embedded derivative liability, measurement input | 0.09 | 0.09 |
Significant Unobservable Inputs (Level 3) | Maximum | Lapse | Other assets – ceded MRBs | ||
Assets | ||
Market risk benefit, measurement input | 0.30 | 0.30 |
Significant Unobservable Inputs (Level 3) | Maximum | Lapse | Other assets - indexed annuity ceded embedded derivatives | ||
Assets | ||
Embedded derivative asset, measurement input | 0.09 | 0.09 |
Significant Unobservable Inputs (Level 3) | Maximum | Lapse | Other assets - LPR ceded derivative | ||
Assets | ||
Embedded derivative asset, measurement input | 0.0200 | 0.0155 |
Significant Unobservable Inputs (Level 3) | Maximum | Lapse | Other liabilities – ceded MRBs | ||
Assets | ||
Market risk benefit, measurement input | 0.30 | 0.30 |
Significant Unobservable Inputs (Level 3) | Maximum | Utilization of GLB Withdrawls | Other assets – ceded MRBs | ||
Assets | ||
Market risk benefit, measurement input | 1 | |
Significant Unobservable Inputs (Level 3) | Maximum | Utilization of GLB Withdrawls | Other liabilities – ceded MRBs | ||
Assets | ||
Market risk benefit, measurement input | 1 | 1 |
Significant Unobservable Inputs (Level 3) | Maximum | Claims Utilization Factor | Other assets – ceded MRBs | ||
Assets | ||
Market risk benefit, measurement input | 1 | |
Significant Unobservable Inputs (Level 3) | Maximum | Claims Utilization Factor | Other liabilities – ceded MRBs | ||
Assets | ||
Market risk benefit, measurement input | 1 | 1 |
Significant Unobservable Inputs (Level 3) | Maximum | Premiums Utilization Factor | Other assets – ceded MRBs | ||
Assets | ||
Market risk benefit, measurement input | 1.15 | |
Significant Unobservable Inputs (Level 3) | Maximum | Premiums Utilization Factor | Other liabilities – ceded MRBs | ||
Assets | ||
Market risk benefit, measurement input | 1.15 | 1.15 |
Significant Unobservable Inputs (Level 3) | Maximum | Non-Performance Risk | Other assets – ceded MRBs | ||
Assets | ||
Market risk benefit, measurement input | 0.0213 | |
Significant Unobservable Inputs (Level 3) | Maximum | Non-Performance Risk | Other assets - LPR ceded derivative | ||
Assets | ||
Embedded derivative asset, measurement input | 0.0213 | 0.0241 |
Significant Unobservable Inputs (Level 3) | Maximum | Non-Performance Risk | Other liabilities – ceded MRBs | ||
Assets | ||
Market risk benefit, measurement input | 0.0213 | 0.0241 |
Significant Unobservable Inputs (Level 3) | Maximum | Volatility | Other assets – ceded MRBs | ||
Assets | ||
Market risk benefit, measurement input | 0.29 | |
Significant Unobservable Inputs (Level 3) | Maximum | Volatility | Other liabilities – ceded MRBs | ||
Assets | ||
Market risk benefit, measurement input | 0.29 | 0.28 |
Significant Unobservable Inputs (Level 3) | Weighted Average Range | Liquidity/Duration Adjustment | ||
Assets | ||
Equity securities, measurement input | 0.045 | |
Significant Unobservable Inputs (Level 3) | Weighted Average Range | Liquidity/Duration Adjustment | Corporate bonds | ||
Assets | ||
Fixed maturity AFS and trading securities, measurement input | 0.021 | |
Significant Unobservable Inputs (Level 3) | Weighted Average Range | Liquidity/Duration Adjustment | State and municipal bonds | ||
Assets | ||
Fixed maturity AFS and trading securities, measurement input | 0.021 | |
Significant Unobservable Inputs (Level 3) | Weighted Average Range | Liquidity/Duration Adjustment | CMBS | ||
Assets | ||
Fixed maturity AFS and trading securities, measurement input | 0.023 | |
Significant Unobservable Inputs (Level 3) | Weighted Average Range | Liquidity/Duration Adjustment | ABS | ||
Assets | ||
Fixed maturity AFS and trading securities, measurement input | 0.018 | |
Significant Unobservable Inputs (Level 3) | Weighted Average Range | Liquidity/Duration Adjustment | Hybrid and redeemable preferred securities | ||
Assets | ||
Fixed maturity AFS and trading securities, measurement input | 0.015 | |
Significant Unobservable Inputs (Level 3) | Weighted Average Range | Utilization of GLB Withdrawls | Other assets – ceded MRBs | ||
Assets | ||
Market risk benefit, measurement input | 0.94 | |
Significant Unobservable Inputs (Level 3) | Weighted Average Range | Utilization of GLB Withdrawls | Other liabilities – ceded MRBs | ||
Assets | ||
Market risk benefit, measurement input | 0.94 | 0.94 |
Significant Unobservable Inputs (Level 3) | Weighted Average Range | Non-Performance Risk | Other assets – ceded MRBs | ||
Assets | ||
Market risk benefit, measurement input | 0.0178 | |
Significant Unobservable Inputs (Level 3) | Weighted Average Range | Non-Performance Risk | Other assets - LPR ceded derivative | ||
Assets | ||
Embedded derivative asset, measurement input | 0.0158 | |
Significant Unobservable Inputs (Level 3) | Weighted Average Range | Non-Performance Risk | Other liabilities – ceded MRBs | ||
Assets | ||
Market risk benefit, measurement input | 0.0178 | 0.0173 |
Significant Unobservable Inputs (Level 3) | Weighted Average Range | Volatility | Other assets – ceded MRBs | ||
Assets | ||
Market risk benefit, measurement input | 0.1392 | |
Significant Unobservable Inputs (Level 3) | Weighted Average Range | Volatility | Other liabilities – ceded MRBs | ||
Assets | ||
Market risk benefit, measurement input | 0.1392 | 0.1447 |
Retirement and Deferred Compe_3
Retirement and Deferred Compensation Plans - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Benefit Plan, Assumptions Used in Calculations [Abstract] | |||
Defined benefit plan, net periodic benefit cost (credit) | $ 2 | $ (2) | $ 1 |
Expected benefit payments in the next fiscal year | 9 | ||
Defined contribution plans expense | 114 | 99 | 104 |
Deferred compensation plans expense | 22 | 12 | 18 |
Other Postretirement Benefit Plans | |||
Defined Benefit Plan, Assumptions Used in Calculations [Abstract] | |||
Benefit expense (benefit) | $ (1) | $ 35 | $ 28 |
Retirement and Deferred Compe_4
Retirement and Deferred Compensation Plans - Benefit Plan Assets and Obligations (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 81 | $ 86 |
Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 71 | 77 |
Projected benefit obligation | 77 | 82 |
Funded status | (6) | (5) |
Amounts Recognized on the Consoildated Balance Sheets | ||
Other assets | 0 | 0 |
Other liabilities | (6) | (5) |
Net amount recognized | $ (6) | $ (5) |
Weighted-Average Assumptions Benefit obligations: | ||
Weighted-average discount rate | 5.44% | 5.66% |
Net periodic benefit cost: | ||
Weighted-average discount rate | 5.62% | 3.07% |
Expected return on plan assets | 6% | 5% |
Other Postretirement Benefit Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 10 | $ 9 |
Projected benefit obligation | 6 | 6 |
Funded status | 4 | 3 |
Amounts Recognized on the Consoildated Balance Sheets | ||
Other assets | 4 | 3 |
Other liabilities | 0 | 0 |
Net amount recognized | $ 4 | $ 3 |
Weighted-Average Assumptions Benefit obligations: | ||
Weighted-average discount rate | 5.45% | 5.70% |
Net periodic benefit cost: | ||
Weighted-average discount rate | 5.70% | 3.73% |
Expected return on plan assets | 6.50% | 6.50% |
Retirement and Deferred Compe_5
Retirement and Deferred Compensation Plans - Fair Value of Benefit Plan Assets (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 81 | $ 86 |
Corporate bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 23 | 33 |
U.S. government bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 22 | 17 |
CMBS | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 2 | 2 |
Common stock | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 21 | 22 |
Cash and invested cash | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 3 | 3 |
Other investments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 10 | $ 9 |
Retirement and Deferred Compe_6
Retirement and Deferred Compensation Plans - Deferred Compensation Plans Liabilities and Investment (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Retirement Benefits [Abstract] | ||
Total liabilities | $ 695 | $ 623 |
Investments dedicated to fund liabilities | $ 233 | $ 206 |
Stock-Based Incentive Compens_3
Stock-Based Incentive Compensation Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Share-based payment arrangement, expense | $ 59 | $ 48 | $ 58 |
Recognized tax benefit | 9 | 11 | 12 |
Stock options | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Share-based payment arrangement, expense | 7 | 6 | 8 |
Performance shares | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Share-based payment arrangement, expense | 12 | 9 | 17 |
RSUs | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Share-based payment arrangement, expense | $ 40 | $ 33 | $ 33 |
Contingencies and Commitments -
Contingencies and Commitments - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Oct. 05, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Mar. 07, 2024 | Jun. 14, 2023 | |
Loss Contingencies [Line Items] | ||||||
Loss contingency, estimate | $ 109,960 | $ 190,000 | $ 117,750 | |||
Loss contingency, insurance rate freeze, term | 5 years | |||||
Loss contingency, percentage of policyholder claim amounts | 0.14% | |||||
Loss contingency, objection or opt out, period | 45 days | |||||
Operating lease ROU asset | 80,000 | $ 110,000 | ||||
Present value of minimum lease payments | $ 89,000 | $ 119,000 | ||||
Weighted average discount rate, operating lease | 3.70% | 2.80% | ||||
Weighted average remaining operating lease term | 4 years | 5 years | ||||
Operating lease expense | $ 41,000 | $ 45,000 | $ 41,000 | |||
Finance lease, net book value | 5,000 | 14,000 | ||||
Present value of minimum lease payments | 27,000 | 106,000 | ||||
Finance lease, right-of-use asset, accumulated amortization | $ 467,000 | $ 458,000 | ||||
Weighted average discount rate, finance lease | 6.40% | 2.90% | ||||
Weighted average remaining finance lease term | 2 years | 1 year | ||||
Payables (recoveries) for congressionally mandated assessments | $ (1,000) | $ (3,000) | ||||
Subsequent Event | ||||||
Loss Contingencies [Line Items] | ||||||
Loss contingency, estimate | $ 147,500 |
Contingencies and Commitments_2
Contingencies and Commitments - Finance Lease Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Amortization of finance lease assets | $ 9 | $ 23 | $ 38 |
Interest on finance lease liabilities | 5 | 4 | 3 |
Total | $ 14 | $ 27 | $ 41 |
Contingencies and Commitments_3
Contingencies and Commitments - Cash Flow Information Related to Leases (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows from operating leases | $ 41 | $ 47 | $ 40 |
Financing cash flows from finance leases | 83 | 74 | 62 |
ROU assets obtained in exchange for new lease obligations: | |||
Operating leases | $ 0 | $ 6 | $ 8 |
Contingencies and Commitments_4
Contingencies and Commitments - Future Minimum Lease Payments (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Operating Leases | ||
2024 | $ 34 | |
2025 | 26 | |
2026 | 22 | |
2027 | 15 | |
2028 | 8 | |
Thereafter | 7 | |
Total future minimum lease payments | 112 | |
Less: Amount representing interest | 23 | |
Present value of minimum lease payments | 89 | $ 119 |
Finance Leases | ||
2024 | 18 | |
2025 | 7 | |
2026 | 4 | |
2027 | 0 | |
2028 | 0 | |
Thereafter | 0 | |
Total future minimum lease payments | 29 | |
Less: Amount representing interest | 2 | |
Present value of minimum lease payments | 27 | 106 |
Sale-Leaseback Arrangements | ||
Finance Leases | ||
2024 | 152 | |
2025 | 172 | |
2026 | 224 | |
2027 | 127 | |
2028 | 10 | |
Thereafter | 6 | |
Total future minimum lease payments | 691 | |
Less: Amount representing interest | 96 | |
Present value of minimum lease payments | $ 595 | $ 558 |
Shares and Stockholders' Equity
Shares and Stockholders' Equity - Components and Changes in AOCI (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance as of beginning-of-year | $ 8,604 | $ 25,934 | |
Balance as of end-of-year | 10,507 | 8,604 | $ 25,934 |
Unrealized Gain (Loss) on Fixed Maturity AFS Securities and Certain Other Investments | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance as of beginning-of-year | (8,526) | 9,153 | 8,993 |
Income tax benefit (expense) | (650) | 4,815 | 797 |
Reclassification adjustment for gains (losses) included in net income (loss) | (3,425) | (13) | 624 |
Income tax benefit (expense) | 719 | 3 | (131) |
Balance as of end-of-year | (3,532) | (8,526) | 9,153 |
Unrealized holding gains (losses) arising during the year | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Changes arising during the year | 2,122 | (24,475) | (4,478) |
Change in foreign currency exchange rate adjustment | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Changes arising during the year | 178 | (321) | (143) |
Change in future contract benefits and policyholder account balances, net of reinsurance | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Changes arising during the year | 638 | 2,292 | 893 |
Unrealized Gain (Loss) on Derivative Instruments | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance as of beginning-of-year | 301 | 258 | 42 |
Income tax benefit (expense) | 2 | (34) | (63) |
Reclassification adjustment for gains (losses) included in net income (loss) | 60 | 103 | 49 |
Income tax benefit (expense) | (13) | (22) | (10) |
Balance as of end-of-year | 249 | 301 | 258 |
Unrealized holding gains (losses) arising during the year | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Changes arising during the year | 162 | (154) | 141 |
Change in foreign currency exchange rate adjustment | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Changes arising during the year | (169) | 312 | 152 |
Market Risk Benefit Non-Performance Risk Gain (Loss) | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance as of beginning-of-year | 1,739 | 1,951 | 0 |
Adjustment arising during the year | (854) | (267) | (1,174) |
Income tax benefit (expense) | 184 | 55 | 251 |
Balance as of end-of-year | 1,069 | 1,739 | 1,951 |
Policyholder Liability Discount Rate Remeasurement Gain (Loss) | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance as of beginning-of-year | 790 | (1,101) | 0 |
Adjustment arising during the year | (187) | 2,406 | 711 |
Income tax benefit (expense) | 42 | (515) | (151) |
Balance as of end-of-year | 645 | 790 | (1,101) |
Funded Status of Employee Benefit Plans | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance as of beginning-of-year | (17) | (11) | (14) |
Adjustment arising during the year | 1 | (6) | 4 |
Income tax benefit (expense) | 0 | 0 | (1) |
Balance as of end-of-year | $ (16) | $ (17) | (11) |
Cumulative effect from adoption of new accounting standards | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance as of beginning-of-year | 4,822 | ||
Cumulative effect from adoption of new accounting standards | Unrealized Gain (Loss) on Fixed Maturity AFS Securities and Certain Other Investments | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance as of beginning-of-year | 3,584 | ||
Cumulative effect from adoption of new accounting standards | Unrealized Gain (Loss) on Derivative Instruments | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance as of beginning-of-year | 25 | ||
Cumulative effect from adoption of new accounting standards | Market Risk Benefit Non-Performance Risk Gain (Loss) | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance as of beginning-of-year | 2,874 | ||
Cumulative effect from adoption of new accounting standards | Policyholder Liability Discount Rate Remeasurement Gain (Loss) | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance as of beginning-of-year | $ (1,661) |
Shares and Stockholders' Equi_2
Shares and Stockholders' Equity - Schedule of Reclassifications Out of AOCI (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Realized gain (loss) | $ (4,934) | $ 418 | $ 859 |
Benefits | 5,028 | 8,203 | 8,027 |
Income (loss) before taxes | (2,461) | (2,112) | 4,034 |
Federal income tax expense (benefit) | 673 | 437 | (737) |
Net investment income | 5,712 | 5,274 | 5,839 |
Net income (loss) | (1,788) | (1,675) | 3,297 |
Reclassification out of Accumulated Other Comprehensive Income | Unrealized Gain (Loss) on Fixed Maturity AFS Securities and Certain Other Investments | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Realized gain (loss) | (4,014) | (13) | 624 |
Benefits | 589 | ||
Income (loss) before taxes | (3,425) | (13) | 624 |
Federal income tax expense (benefit) | 719 | 3 | (131) |
Net income (loss) | (2,706) | (10) | 493 |
Reclassification out of Accumulated Other Comprehensive Income | Unrealized Gain (Loss) on Derivative Instruments | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Realized gain (loss) | 7 | 39 | (2) |
Income (loss) before taxes | 60 | 103 | 49 |
Federal income tax expense (benefit) | (13) | (22) | (10) |
Net income (loss) | 47 | 81 | 39 |
Reclassification out of Accumulated Other Comprehensive Income | Unrealized Gain (Loss) on Derivative Instruments | Interest rate contracts | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net investment income | (1) | 2 | 3 |
Reclassification out of Accumulated Other Comprehensive Income | Unrealized Gain (Loss) on Derivative Instruments | Foreign currency contracts | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net investment income | $ 54 | $ 62 | $ 48 |
Segment Information - Reconcili
Segment Information - Reconciliation of Revenue from Segments to Consolidated (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Total revenues | $ 10,059 | $ 17,557 | $ 18,512 |
Other Operations | |||
Segment Reporting Information [Line Items] | |||
Total revenues | (778) | 133 | 158 |
Revenue adjustments from annuity and life insurance product features | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 99 | 872 | 818 |
Credit loss-related adjustments | |||
Segment Reporting Information [Line Items] | |||
Total revenues | (74) | (129) | 109 |
Investment gains (losses) | |||
Segment Reporting Information [Line Items] | |||
Total revenues | (4,080) | 19 | 654 |
Changes in the fair value of reinsurance-related embedded derivatives, trading securities and certain mortgage loans | |||
Segment Reporting Information [Line Items] | |||
Total revenues | (22) | 588 | 165 |
GLB rider fees ceded to LNBAR | |||
Segment Reporting Information [Line Items] | |||
Total revenues | (923) | (932) | (888) |
Annuities | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 2,625 | 4,102 | 4,258 |
Life Insurance | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 6,362 | 6,344 | 6,938 |
Group Protection | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 5,560 | 5,303 | 4,994 |
Retirement Plan Services | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Total revenues | $ 1,290 | $ 1,257 | $ 1,306 |
Segment Information - Reconci_2
Segment Information - Reconciliation of Income (Loss) from Operations by Segment to Consolidated Net Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Net income (loss) | $ (1,788) | $ (1,675) | $ 3,297 |
Other Operations | |||
Segment Reporting Information [Line Items] | |||
Net income (loss) | (356) | (374) | (244) |
Net annuity product features | |||
Segment Reporting Information [Line Items] | |||
Net income (loss) | 1,295 | 416 | 1,866 |
Net life insurance product features | |||
Segment Reporting Information [Line Items] | |||
Net income (loss) | 148 | 21 | (1) |
Credit loss-related adjustments | |||
Segment Reporting Information [Line Items] | |||
Net income (loss) | (58) | (102) | 86 |
Investment gains (losses) | |||
Segment Reporting Information [Line Items] | |||
Net income (loss) | (3,210) | 15 | 516 |
Changes in the fair value of reinsurance-related embedded derivatives, trading securities and certain mortgage loans | |||
Segment Reporting Information [Line Items] | |||
Net income (loss) | (18) | 465 | 130 |
GLB rider fees ceded to LNBAR, after-tax | |||
Segment Reporting Information [Line Items] | |||
Net income (loss) | (728) | (735) | (701) |
Impairment of intangibles | |||
Segment Reporting Information [Line Items] | |||
Net income (loss) | 0 | (634) | 0 |
Transaction and integration costs related to mergers, acquisitions, and divestures | |||
Segment Reporting Information [Line Items] | |||
Net income (loss) | (27) | 0 | (11) |
Annuities | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Net income (loss) | 840 | 948 | 1,089 |
Life Insurance | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Net income (loss) | (126) | (1,933) | 497 |
Group Protection | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Net income (loss) | 297 | 40 | (165) |
Retirement Plan Services | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Net income (loss) | $ 155 | $ 198 | $ 235 |
Segment Information - Reconci_3
Segment Information - Reconciliation of Net Investment Income from Segments to Consolidated (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Net investment income | $ 5,712 | $ 5,274 | $ 5,839 |
Other Operations | |||
Segment Reporting Information [Line Items] | |||
Net investment income | 118 | 124 | 125 |
Annuities | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Net investment income | 1,744 | 1,387 | 1,314 |
Life Insurance | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Net investment income | 2,515 | 2,464 | 3,054 |
Group Protection | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Net investment income | 336 | 333 | 364 |
Retirement Plan Services | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Net investment income | $ 999 | $ 966 | $ 982 |
Segment Information - Reconci_4
Segment Information - Reconciliation of Federal Income Tax Expense (Benefit) from Segments to Consolidated Net Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Federal income tax expense (benefit) | $ (673) | $ (437) | $ 737 |
Other Operations | |||
Segment Reporting Information [Line Items] | |||
Federal income tax expense (benefit) | (102) | (84) | (70) |
Net annuity product features | |||
Segment Reporting Information [Line Items] | |||
Federal income tax expense (benefit) | 344 | 112 | 496 |
Net life insurance product features | |||
Segment Reporting Information [Line Items] | |||
Federal income tax expense (benefit) | 39 | 5 | 0 |
Credit loss-related adjustments | |||
Segment Reporting Information [Line Items] | |||
Federal income tax expense (benefit) | (16) | (27) | 20 |
Investment gains (losses) | |||
Segment Reporting Information [Line Items] | |||
Federal income tax expense (benefit) | (853) | 4 | 140 |
Changes in the fair value of reinsurance-related embedded derivatives, trading securities and certain mortgage loans | |||
Segment Reporting Information [Line Items] | |||
Federal income tax expense (benefit) | (5) | 123 | 35 |
GLB rider fees ceded to LNBAR, after-tax | |||
Segment Reporting Information [Line Items] | |||
Federal income tax expense (benefit) | (194) | (197) | (186) |
Transaction and integration costs related to mergers, acquisitions, and divestures | |||
Segment Reporting Information [Line Items] | |||
Federal income tax expense (benefit) | (7) | 0 | (3) |
Annuities | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Federal income tax expense (benefit) | 79 | 128 | 189 |
Life Insurance | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Federal income tax expense (benefit) | (62) | (544) | 112 |
Group Protection | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Federal income tax expense (benefit) | 79 | 11 | (44) |
Retirement Plan Services | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Federal income tax expense (benefit) | $ 25 | $ 32 | $ 48 |
Segment Information - Reconci_5
Segment Information - Reconciliation of Assets from Segments to Consolidated (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 373,976 | $ 335,582 |
Other Operations | ||
Segment Reporting Information [Line Items] | ||
Total assets | 23,021 | 20,461 |
Annuities | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Total assets | 186,716 | 165,643 |
Life Insurance | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Total assets | 107,529 | 97,373 |
Group Protection | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Total assets | 9,741 | 9,830 |
Retirement Plan Services | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ 46,969 | $ 42,275 |
Realized Gain (Loss) (Details)
Realized Gain (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Fixed maturity AFS securities: | ||||
Gross gains | $ 627 | $ 37 | $ 660 | |
Gross losses | (428) | (50) | (36) | |
Credit loss benefit (expense) | 21 | 14 | 11 | |
Intent to sell impairments | (4,213) | 0 | 0 | |
Realized gain (loss) on equity securities | (6) | 12 | 41 | |
Realized gain (loss) on the market-to-market on certain instruments | (509) | 683 | 169 | |
Indexed product derivative results | (232) | 74 | 22 | |
GLB rider fees ceded to LNBAR and attributed fees | (112) | (168) | (91) | |
Other realized gain (loss) | 11 | (41) | (13) | |
Total realized gain (loss) | (4,934) | 418 | 859 | |
Fortitude Re | ||||
Fixed maturity AFS securities: | ||||
Gross gains | $ 295 | |||
Loss on derivative | 87 | |||
Mortgage loans on real estate | ||||
Fixed maturity AFS securities: | ||||
Credit loss benefit (expense) on mortgage loans on real estate | (16) | (3) | 111 | |
Realized gain (loss) on the market-to-market on certain instruments | 11 | (24) | (3) | |
Reinsurance Related Assets | ||||
Fixed maturity AFS securities: | ||||
Credit loss benefit (expense) on reinsurance-related assets | (35) | (112) | 7 | |
Equity securities | ||||
Fixed maturity AFS securities: | ||||
Realized gain (loss) on equity securities | $ 8 | $ 7 | $ 44 |
Commissions and Other Expense_2
Commissions and Other Expenses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Commissions and Other Expenses [Abstract] | |||
Commissions | $ 2,082 | $ 2,201 | $ 2,227 |
General and administrative expenses | 2,427 | 2,200 | 2,187 |
DAC and VOBA deferrals, net of amortization | (171) | (346) | (321) |
Broker-dealer expenses | 444 | 419 | 441 |
Taxes, licenses and fees | 333 | 344 | 358 |
Expenses associated with reserve financing and LOCs | 58 | 60 | 57 |
Specifically identifiable intangible asset amortization | 37 | 37 | 37 |
Other amortization | 5 | 12 | 11 |
Transaction and integration costs related to mergers, acquisitions and divestitures | 34 | 0 | 14 |
Total | $ 5,249 | $ 4,927 | $ 5,011 |
Federal Income Taxes - Federal
Federal Income Taxes - Federal Income Tax Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||
Current | $ (255) | $ (24) | $ 20 |
Deferred | (418) | (413) | 717 |
Federal income tax expense (benefit) | $ (673) | $ (437) | $ 737 |
Federal Income Taxes - Reconcil
Federal Income Taxes - Reconciliation of the Effective Tax Rate Differences (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Expense (Benefit), Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
Income (loss) before taxes | $ (2,461) | $ (2,112) | $ 4,034 |
Federal statutory rate | 21% | 21% | 21% |
Federal income tax expense (benefit) at federal statutory rate | $ (517) | $ (444) | $ 847 |
Effect of: | |||
Tax-preferred investment income | (126) | (90) | (88) |
Tax credits | (40) | (42) | (26) |
Excess tax expense (benefit) from stock-based compensation | 3 | (1) | 0 |
Goodwill impairment | 0 | 133 | 0 |
Other items | 7 | 7 | 4 |
Federal income tax expense (benefit) | $ (673) | $ (437) | $ 737 |
Effective tax rate | 27% | 21% | 18% |
Federal Income Taxes - Federa_2
Federal Income Taxes - Federal Income Tax Asset (Liability) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Income Tax Disclosure [Abstract] | ||
Current | $ 546 | $ 353 |
Deferred | 49 | 734 |
Total federal income tax asset (liability) | $ 595 | $ 1,087 |
Federal Income Taxes - Signific
Federal Income Taxes - Significant Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred Tax Assets | ||
Insurance liabilities and reinsurance-related balances | $ 322 | $ 231 |
Compensation and benefit plans | 175 | 152 |
Intangibles | 18 | 21 |
Net unrealized loss on fixed maturity AFS securities | 1,246 | 2,161 |
Net unrealized loss on trading securities | 33 | 70 |
Investment activity | 91 | 296 |
Tax credits | 103 | 0 |
Net operating losses | 87 | 278 |
Capital losses | 93 | 0 |
Deferred gain on reinsurance | 400 | 30 |
Total deferred tax assets | 2,568 | 3,239 |
Deferred Tax Liabilities | ||
DAC and VOBA | 1,906 | 1,769 |
Reinsurance-related embedded derivative assets | 104 | 143 |
MRB-related activity | 286 | 228 |
Other | 223 | 365 |
Total deferred tax liabilities | 2,519 | 2,505 |
Net deferred tax asset (liability) | $ 49 | $ 734 |
Federal Income Taxes - Narrativ
Federal Income Taxes - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Tax Credit Carryforward [Line Items] | |||
Operating loss carryforwards | $ 414 | ||
Tax credit carryforward, valuation allowance | 0 | ||
Unrecognized tax benefits that would impact effective tax rate | 66 | $ 43 | |
Possible decrease in unrecognized tax benefits | 35 | ||
Unrecognized tax benefits, income tax penalties and interest expense | 0 | 0 | $ 0 |
Unrecognized tax benefits, income tax penalties and interest accrued | 0 | $ 0 | |
Capital Loss Carryforward | |||
Tax Credit Carryforward [Line Items] | |||
Tax credit carryforward, amount | 442 | ||
Internal Revenue Service (IRS) | |||
Tax Credit Carryforward [Line Items] | |||
Tax credit carryforward, amount | $ 103 |
Federal Income Taxes - Reconc_2
Federal Income Taxes - Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance as of beginning-of-year | $ 59 | $ 64 |
Decreases for prior year tax positions | (6) | (6) |
Increases for prior year tax positions | 23 | 1 |
Balance as of end-of-year | $ 76 | $ 59 |
Statutory Information and Res_3
Statutory Information and Restrictions - Statutory Capital and Surplus (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Statutory Information and Restrictions [Abstract] | ||
U.S. capital and surplus | $ 8,026 | $ 8,507 |
Statutory Information and Res_4
Statutory Information and Restrictions - Net Gain (Loss) from Operations, Net Income Loss, Dividends to LNC Holding Company (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statutory Information and Restrictions [Abstract] | |||
U.S. net gain (loss) from operations, after-tax | $ (2,495) | $ 1,708 | $ (1,285) |
U.S. net income (loss) | (2,924) | 1,965 | (569) |
U.S. dividends to LNC holding company | $ 495 | $ 645 | $ 1,910 |
Statutory Information and Res_5
Statutory Information and Restrictions - Effects on Statutory Surplus Compared to NAIC Statutory Surplus (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Calculation of reserves using the Indiana universal life method | ||
Statutory Accounting Practices [Line Items] | ||
State insurance department, statutory to NAIC, amount of reconciling item | $ (1) | $ 3 |
Conservative valuation rate on certain annuities | ||
Statutory Accounting Practices [Line Items] | ||
State insurance department, statutory to NAIC, amount of reconciling item | (1) | (36) |
Calculation of reserves using continuous CARVM | ||
Statutory Accounting Practices [Line Items] | ||
State insurance department, statutory to NAIC, amount of reconciling item | (1) | (1) |
Conservative Reg 213 reserves on variable annuity and individual life contracts | ||
Statutory Accounting Practices [Line Items] | ||
State insurance department, statutory to NAIC, amount of reconciling item | (31) | (37) |
Derivative instruments and equity indexed reserves | ||
Statutory Accounting Practices [Line Items] | ||
State insurance department, statutory to NAIC, amount of reconciling item | (170) | 14 |
Assets in group fixed annuity contracts held at general account balances | ||
Statutory Accounting Practices [Line Items] | ||
State insurance department, statutory to NAIC, amount of reconciling item | 332 | 436 |
Lesser of LOC and XXX additional reserve as surplus | ||
Statutory Accounting Practices [Line Items] | ||
State insurance department, statutory to NAIC, amount of reconciling item | 1,776 | 1,838 |
LLC notes and variable value surplus notes | ||
Statutory Accounting Practices [Line Items] | ||
State insurance department, statutory to NAIC, amount of reconciling item | 1,444 | 1,547 |
Excess of loss reinsurance agreements | ||
Statutory Accounting Practices [Line Items] | ||
State insurance department, statutory to NAIC, amount of reconciling item | $ 563 | $ 549 |
Statutory Information and Res_6
Statutory Information and Restrictions - Narrative (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Insurance [Abstract] | |
RBC ratio, low end | 75% |
RBC ratio, high end | 100% |
Indiana statutory limitation as a percentage of the insurer contract holder surplus | 10% |
New York statutory limitation as a percentage of the insurer contract holder surplus | 10% |
Statutory accounting practices, statutory amount available for dividend payments | $ 780 |
Supplemental Disclosures of C_3
Supplemental Disclosures of Cash Flow Data (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Net cash paid (received) for: | |||
Interest | $ 187 | $ 126 | $ 115 |
Income taxes | (110) | (61) | 29 |
Non-cash transactions: | |||
Net increase (decrease) in fixed maturity AFS securities and accrued investment income in connection with reinsurance transactions | (20,264) | 54 | (3,700) |
Establishment of funds withheld liability in connection with a reinsurance transaction | $ (49) | $ 0 | $ 0 |
Transactions with Affiliates -
Transactions with Affiliates - Balance Sheet Transactions with Affiliates (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2020 |
Related Party Transaction [Line Items] | |||
Fixed maturity available-for-sale securities, at fair value | $ 82,300 | $ 99,465 | |
Policy loans | 2,463 | 2,345 | |
DAC, VOBA and DSI | 12,418 | 12,263 | $ 12,162 |
Accrued investment income | 982 | 1,234 | |
Reinsurance recoverables, net of allowance for credit losses | 45,110 | 21,804 | 20,713 |
Other assets | 10,597 | 7,677 | |
Future contract benefits | 40,174 | 38,302 | $ 42,044 |
Policyholder account balances | 120,316 | 113,972 | |
Short-term debt | 840 | 562 | |
Long-term debt | 2,195 | 2,269 | |
Funds withheld reinsurance liabilities | 13,628 | 8,255 | |
Other liabilities | 12,438 | 6,251 | |
Accumulated other comprehensive income (loss) | (1,585) | (5,713) | |
Related Party | |||
Related Party Transaction [Line Items] | |||
Fixed maturity available-for-sale securities, at fair value | 1,063 | 1,216 | |
Policy loans | 1 | 0 | |
DAC, VOBA and DSI | (131) | (138) | |
Accrued investment income | 16 | 13 | |
Reinsurance recoverables, net of allowance for credit losses | 15,563 | 2,187 | |
Future contract benefits | 18 | 17 | |
Policyholder account balances | 352 | 361 | |
Short-term debt | 840 | 562 | |
Long-term debt | 2,195 | 2,269 | |
Funds withheld reinsurance liabilities | 5,862 | 2,517 | |
Accumulated other comprehensive income (loss) | 774 | 55 | |
Ceded reinsurance contracts | Related Party | |||
Related Party Transaction [Line Items] | |||
Other assets | 642 | 899 | |
Other liabilities | 897 | ||
Other liabilities | (31) | ||
Cash management agreement | Related Party | |||
Related Party Transaction [Line Items] | |||
Other assets | 857 | 124 | |
Accrued inter-company interest payable | Related Party | |||
Related Party Transaction [Line Items] | |||
Other liabilities | 18 | 15 | |
Service agreement | Related Party | |||
Related Party Transaction [Line Items] | |||
Other assets | 41 | 6 | |
Other liabilities | 37 | 41 | |
Assumed/ceded reinsurance contracts | Related Party | |||
Related Party Transaction [Line Items] | |||
Other liabilities | $ 4,387 | $ 158 |
Transactions with Affiliates _2
Transactions with Affiliates - Comprehensive Income (Loss) Transactions with Affiliates (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Related Party Transaction [Line Items] | |||
Insurance premiums | $ 8,584 | $ 11,207 | $ 11,125 |
Net investment income | 5,712 | 5,274 | 5,839 |
Realized gain (loss) | (4,934) | 418 | 859 |
Amortization of deferred gain (loss) on business sold through reinsurance | 48 | 37 | 32 |
Other revenues | 649 | 621 | 657 |
Benefits | 5,028 | 8,203 | 8,027 |
Interest credited | 3,202 | 2,860 | 2,912 |
Market risk benefit (gain) loss | 1,135 | (296) | 1,554 |
Policyholder liability remeasurement (gain) loss | (167) | 2,445 | (119) |
Interest and debt expense | 190 | 137 | 114 |
Related Party | |||
Related Party Transaction [Line Items] | |||
Other revenues | (171) | 0 | 0 |
Premiums received on assumed (paid on ceded) reinsurance contracts | Related Party | |||
Related Party Transaction [Line Items] | |||
Insurance premiums | (498) | (421) | (468) |
Fees for management of general account | Related Party | |||
Related Party Transaction [Line Items] | |||
Net investment income | (156) | (140) | (138) |
Net investment income on ceded funds withheld treaties | Related Party | |||
Related Party Transaction [Line Items] | |||
Net investment income | (238) | (161) | (113) |
Net investment income on inter-company notes | Related Party | |||
Related Party Transaction [Line Items] | |||
Net investment income | 65 | 40 | 29 |
Interest and debt expense | 148 | 120 | 107 |
Ceded reinsurance contracts | Related Party | |||
Related Party Transaction [Line Items] | |||
Benefits | (507) | (247) | (430) |
Commissions And Other Expenses | (13) | (26) | (7) |
Ceded reinsurance contracts | Other gains (losses) | Related Party | |||
Related Party Transaction [Line Items] | |||
Realized gain (loss) | (9) | 631 | 94 |
Ceded reinsurance contracts | Reinsurance-related settlements | Related Party | |||
Related Party Transaction [Line Items] | |||
Realized gain (loss) | 1,717 | (1,068) | 1,626 |
Amortization of deferred gain (loss) on reinsurance contracts | Related Party | |||
Related Party Transaction [Line Items] | |||
Amortization of deferred gain (loss) on business sold through reinsurance | 17 | 3 | 3 |
Interest credited on assumed reinsurance contracts | Related Party | |||
Related Party Transaction [Line Items] | |||
Interest credited | 12 | 47 | 48 |
Market risk benefit (gain) loss on ceded reinsurance contracts | Other gains (losses) | Related Party | |||
Related Party Transaction [Line Items] | |||
Market risk benefit (gain) loss | 1,129 | 3,543 | 2,199 |
Policyholder liability remeasurement (gain) loss on ceded reinsurance contracts | Other gains (losses) | Related Party | |||
Related Party Transaction [Line Items] | |||
Policyholder liability remeasurement (gain) loss | 0 | (321) | 64 |
Service agreement payments (receipts) | Related Party | |||
Related Party Transaction [Line Items] | |||
Commissions And Other Expenses | $ (17) | $ (53) | $ (29) |
Transactions with Affiliates _3
Transactions with Affiliates - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Related Party Transactions [Abstract] | ||
Borrowing and lending limit, percent of admitted assets | 3% | |
Line of credit beneficiary amount | $ 111 | $ 1,500 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2023 | Mar. 07, 2024 | Oct. 05, 2023 | Jun. 14, 2023 | |
Subsequent Event [Line Items] | ||||
Loss contingency, estimate | $ 190,000,000 | $ 109,960,000 | $ 117,750,000 | |
Litigation settlement, expense | $ 110,000,000 | |||
Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Loss contingency, estimate | $ 147,500,000 | |||
Loss contingency accrual | $ 147,500,000 |
SCHEDULE I - CONSOLIDATED SUM_2
SCHEDULE I - CONSOLIDATED SUMMARY OF INVESTMENTS – OTHER THAN INVESTMENTS IN RELATED PARTIES (Details) $ in Millions | Dec. 31, 2023 USD ($) |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost or Amortized Cost | $ 120,009 |
Carrying Value | 117,325 |
Fixed maturity AFS securities, at fair value | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost or Amortized Cost | 88,231 |
Fair Value | 82,300 |
Carrying Value | 82,300 |
U.S. government bonds | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost or Amortized Cost | 414 |
Fair Value | 393 |
Carrying Value | 393 |
Foreign government bonds | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost or Amortized Cost | 309 |
Fair Value | 278 |
Carrying Value | 278 |
State and municipal bonds | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost or Amortized Cost | 2,675 |
Fair Value | 2,542 |
Carrying Value | 2,542 |
Public utilities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost or Amortized Cost | 11,010 |
Fair Value | 9,982 |
Carrying Value | 9,982 |
All other corporate bonds | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost or Amortized Cost | 57,801 |
Fair Value | 53,884 |
Carrying Value | 53,884 |
Mortgage-backed and asset-backed securities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost or Amortized Cost | 15,795 |
Fair Value | 14,989 |
Carrying Value | 14,989 |
Hybrid and redeemable preferred securities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost or Amortized Cost | 227 |
Fair Value | 232 |
Carrying Value | 232 |
Equity securities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost or Amortized Cost | 340 |
Fair Value | 306 |
Carrying Value | 306 |
Banks, trusts and insurance companies | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost or Amortized Cost | 29 |
Fair Value | 32 |
Carrying Value | 32 |
Industrial, miscellaneous and all other | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost or Amortized Cost | 41 |
Fair Value | 38 |
Carrying Value | 38 |
Non-redeemable preferred securities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost or Amortized Cost | 270 |
Fair Value | 236 |
Carrying Value | 236 |
Trading securities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost or Amortized Cost | 2,480 |
Fair Value | 2,321 |
Carrying Value | 2,321 |
Mortgage loans on real estate | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost or Amortized Cost | 19,024 |
Fair Value | 17,330 |
Carrying Value | 18,873 |
Policy loans | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost or Amortized Cost | 2,463 |
Carrying Value | 2,463 |
Derivative investments | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost or Amortized Cost | 2,714 |
Fair Value | 6,305 |
Carrying Value | 6,305 |
Other investments | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost or Amortized Cost | 4,757 |
Fair Value | 4,757 |
Carrying Value | $ 4,757 |
SCHEDULE III - CONDENSED SUPPLE
SCHEDULE III - CONDENSED SUPPLEMENTARY INSURANCE INFORMATION (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||
DAC and VOBA | $ 12,187 | $ 12,027 | $ 11,681 |
Future Contract Benefits | 40,174 | 38,302 | 40,767 |
Unearned Premiums | 0 | 0 | 0 |
Policyholder Account Balances | 120,316 | 113,972 | 109,716 |
Insurance Premiums | 3,416 | 5,841 | 5,359 |
Net Investment Income | 5,712 | 5,274 | 5,839 |
Benefits and Interest Credited | 8,230 | 11,063 | 10,939 |
Amortization of DAC and VOBA | 1,045 | 1,027 | 1,047 |
Other Operating Expense | 4,547 | 4,066 | 4,051 |
Premiums Written | 0 | 0 | 0 |
Annuities | |||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||
DAC and VOBA | 4,304 | 4,336 | 4,328 |
Future Contract Benefits | 2,090 | 2,004 | 2,511 |
Unearned Premiums | 0 | 0 | 0 |
Policyholder Account Balances | 54,471 | 45,522 | 41,670 |
Insurance Premiums | (1,584) | 165 | 116 |
Net Investment Income | 1,744 | 1,387 | 1,314 |
Benefits and Interest Credited | (254) | 1,145 | 1,012 |
Amortization of DAC and VOBA | 443 | 442 | 418 |
Other Operating Expense | 1,522 | 1,449 | 1,565 |
Premiums Written | 0 | 0 | 0 |
Life Insurance | |||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||
DAC and VOBA | 7,485 | 7,309 | 6,973 |
Future Contract Benefits | 22,049 | 20,561 | 19,074 |
Unearned Premiums | 0 | 0 | 0 |
Policyholder Account Balances | 37,035 | 37,523 | 37,994 |
Insurance Premiums | 915 | 908 | 783 |
Net Investment Income | 2,515 | 2,464 | 3,054 |
Benefits and Interest Credited | 4,626 | 5,146 | 5,119 |
Amortization of DAC and VOBA | 484 | 469 | 471 |
Other Operating Expense | 703 | 672 | 692 |
Premiums Written | 0 | 0 | 0 |
Group Protection | |||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||
DAC and VOBA | 154 | 141 | 140 |
Future Contract Benefits | 6,282 | 6,086 | 6,604 |
Unearned Premiums | 0 | 0 | 0 |
Policyholder Account Balances | 0 | 0 | 0 |
Insurance Premiums | 5,014 | 4,768 | 4,450 |
Net Investment Income | 336 | 333 | 364 |
Benefits and Interest Credited | 4,025 | 4,039 | 4,075 |
Amortization of DAC and VOBA | 100 | 97 | 139 |
Other Operating Expense | 1,347 | 1,219 | 1,153 |
Premiums Written | 0 | 0 | 0 |
Retirement Plan Services | |||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||
DAC and VOBA | 244 | 241 | 240 |
Future Contract Benefits | 0 | 0 | 0 |
Unearned Premiums | 0 | 0 | 0 |
Policyholder Account Balances | 23,784 | 25,138 | 23,580 |
Insurance Premiums | 0 | 0 | 0 |
Net Investment Income | 999 | 966 | 982 |
Benefits and Interest Credited | 665 | 629 | 616 |
Amortization of DAC and VOBA | 18 | 19 | 19 |
Other Operating Expense | 426 | 379 | 387 |
Premiums Written | 0 | 0 | 0 |
Other Operations (1) | |||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||
DAC and VOBA | 0 | 0 | 0 |
Future Contract Benefits | 9,753 | 9,651 | 12,578 |
Unearned Premiums | 0 | 0 | 0 |
Policyholder Account Balances | 5,026 | 5,789 | 6,472 |
Insurance Premiums | (929) | 0 | 10 |
Net Investment Income | 118 | 124 | 125 |
Benefits and Interest Credited | (832) | 104 | 117 |
Amortization of DAC and VOBA | 0 | 0 | 0 |
Other Operating Expense | 549 | 347 | 254 |
Premiums Written | $ 0 | $ 0 | $ 0 |
SCHEDULE IV - CONSOLIDATED RE_2
SCHEDULE IV - CONSOLIDATED REINSURANCE (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Life Insurance in Force | |||
Gross Amount | $ 2,071,893 | $ 1,997,539 | $ 1,808,596 |
Ceded to Other Companies | 1,134,476 | 848,979 | 789,638 |
Assumed from Other Companies | 7,739 | 9,010 | 10,651 |
Net Amount | $ 945,156 | $ 1,157,570 | $ 1,029,609 |
Percentage of Amount Assumed to Net | 0.80% | 0.80% | 1% |
Premiums | |||
Gross Amount | $ 13,661 | $ 13,479 | $ 13,277 |
Ceded to Other Companies | 5,168 | 2,374 | 2,249 |
Assumed from Other Companies | 91 | 102 | 97 |
Total insurance premiums and fee income | 8,584 | 11,207 | 11,125 |
Annuities and life insurance | |||
Premiums | |||
Gross Amount | 10,249 | 10,236 | 10,227 |
Ceded to Other Companies | 5,132 | 2,336 | 2,208 |
Assumed from Other Companies | 87 | 98 | 91 |
Total insurance premiums and fee income | $ 5,204 | $ 7,998 | $ 8,110 |
Percentage of Amount Assumed to Net | 1.70% | 1.20% | 1.10% |
Accident and health insurance | |||
Premiums | |||
Gross Amount | $ 3,412 | $ 3,243 | $ 3,050 |
Ceded to Other Companies | 36 | 38 | 41 |
Assumed from Other Companies | 4 | 4 | 6 |
Total insurance premiums and fee income | $ 3,380 | $ 3,209 | $ 3,015 |
Percentage of Amount Assumed to Net | 0.10% | 0.10% | 0.20% |