Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2024 | Aug. 14, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2024 | |
Document Transition Report | false | |
Entity File Number | 000-55871 | |
Entity Registrant Name | THE LINCOLN NATIONAL LIFE INSURANCE COMPANY | |
Entity Incorporation, State or Country Code | IN | |
Entity Tax Identification Number | 35-0472300 | |
Entity Address, Address Line One | 1301 South Harrison Street | |
Entity Address, City or Town | Fort Wayne | |
Entity Address, State or Province | IN | |
Entity Address, Postal Zip Code | 46802 | |
City Area Code | 260 | |
Local Phone Number | 455 - 2000 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 10,000,000 | |
Entity Central Index Key | 0000726865 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Investments: | ||
Fixed maturity available-for-sale securities, at fair value | $ 81,037 | $ 82,300 |
Trading securities | 2,181 | 2,321 |
Equity securities | 295 | 306 |
Mortgage loans on real estate, net of allowance for credit losses | 20,008 | 18,873 |
Policy loans | 2,501 | 2,463 |
Derivative investments | 8,472 | 6,305 |
Other investments | 5,385 | 4,757 |
Total investments | 119,879 | 117,325 |
Cash and invested cash | 4,662 | 3,193 |
Deferred acquisition costs, value of business acquired and deferred sales inducements | 12,337 | 12,418 |
Reinsurance recoverables, net of allowance for credit losses | 50,048 | 45,110 |
Deposit assets, net of allowance for credit losses | 28,762 | 21,056 |
Market risk benefit assets | 4,754 | 3,894 |
Accrued investment income | 1,036 | 982 |
Goodwill | 1,144 | 1,144 |
Other assets | 11,113 | 10,597 |
Separate account assets | 165,199 | 158,257 |
Total assets | 398,934 | 373,976 |
Liabilities | ||
Policyholder account balances | 123,715 | 120,316 |
Future contract benefits | 38,889 | 40,174 |
Funds withheld reinsurance liabilities | 25,720 | 13,628 |
Market risk benefit liabilities | 1,275 | 1,716 |
Deferred front-end loads | 6,327 | 5,923 |
Payables for collateral on investments | 11,010 | 7,982 |
Short-term debt | 656 | 840 |
Long-term debt | 2,177 | 2,195 |
Other liabilities | 12,937 | 12,438 |
Separate account liabilities | 165,199 | 158,257 |
Total liabilities | 387,905 | 363,469 |
Contingencies and Commitments (See Note 13) | ||
Stockholder’s Equity | ||
Common stock – $10,000,000 shares authorized, issued and outstanding | 12,991 | 12,961 |
Retained earnings (deficit) | (575) | (869) |
Accumulated other comprehensive income (loss) | (1,387) | (1,585) |
Total stockholder’s equity | 11,029 | 10,507 |
Total liabilities and stockholder’s equity | $ 398,934 | $ 373,976 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Fixed maturity available-for-sale securities, at fair value | ||
Amortized cost | $ 88,371 | $ 88,231 |
Allowance for credit losses | 39 | 19 |
Mortgage loans on real estate, net of allowance for credit losses | ||
Fair value | $ 258 | $ 288 |
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 | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Revenues | ||||
Insurance premiums | $ (2,766) | $ 1,551 | $ (1,235) | $ 3,067 |
Fee income | 1,118 | 1,307 | 2,228 | 2,628 |
Net investment income | 1,232 | 1,476 | 2,456 | 2,885 |
Realized gain (loss) | 283 | (3,252) | 226 | (3,646) |
Amortization of deferred gain (loss) on business sold through reinsurance | 28 | 8 | 58 | 17 |
Other revenues | 149 | 157 | 367 | 313 |
Total revenues | 44 | 1,247 | 4,100 | 5,264 |
Expenses | ||||
Benefits | (2,726) | 1,676 | (989) | 3,872 |
Interest credited | 781 | 804 | 1,533 | 1,585 |
Market risk benefit (gain) loss | (169) | (1,238) | (866) | (168) |
Policyholder liability remeasurement (gain) loss | (107) | (109) | (118) | (227) |
Commissions and other expenses | 1,290 | 1,322 | 2,693 | 2,594 |
Interest and debt expense | 48 | 47 | 96 | 93 |
Total expenses | (883) | 2,502 | 2,349 | 7,749 |
Income (loss) before taxes | 927 | (1,255) | 1,751 | (2,485) |
Federal income tax expense (benefit) | 166 | (299) | 333 | (601) |
Net income (loss) | 761 | (956) | 1,418 | (1,884) |
Other comprehensive income (loss), net of tax: | ||||
Unrealized investment gain (loss) | 136 | 2,119 | 669 | 3,896 |
Market risk benefit non-performance risk gain (loss) | (197) | (924) | (661) | 102 |
Policyholder liability discount rate remeasurement gain (loss) | 85 | 102 | 190 | (88) |
Foreign currency translation adjustment | 0 | (1) | 0 | (1) |
Total other comprehensive income (loss), net of tax | 24 | 1,296 | 198 | 3,909 |
Comprehensive income (loss) | $ 785 | $ 340 | $ 1,616 | $ 2,025 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDER’S EQUITY - USD ($) $ in Millions | Total | Common Stock | Retained Earnings (Deficit) | Accumulated Other Comprehensive Income (Loss) |
Balance as of beginning-of-year at Dec. 31, 2022 | $ 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 | 27 | |||
Net income (loss) | $ (1,884) | (1,884) | ||
Dividends paid to Lincoln National Corporation | (260) | |||
Other comprehensive income (loss), net of tax | 3,909 | 3,909 | ||
Balance as of end-of-period at Jun. 30, 2023 | 10,401 | 12,935 | (730) | (1,804) |
Balance as of beginning-of-year at Mar. 31, 2023 | 12,922 | 381 | (3,100) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Capital contribution from Lincoln National Corporation | 0 | |||
Stock compensation/issued for benefit plans | 13 | |||
Net income (loss) | (956) | (956) | ||
Dividends paid to Lincoln National Corporation | (155) | |||
Other comprehensive income (loss), net of tax | 1,296 | 1,296 | ||
Balance as of end-of-period at Jun. 30, 2023 | 10,401 | 12,935 | (730) | (1,804) |
Balance as of beginning-of-year at Dec. 31, 2023 | 10,507 | 12,961 | (869) | (1,585) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Capital contribution from Lincoln National Corporation | 0 | |||
Stock compensation/issued for benefit plans | 30 | |||
Net income (loss) | 1,418 | 1,418 | ||
Dividends paid to Lincoln National Corporation | (1,124) | |||
Other comprehensive income (loss), net of tax | 198 | 198 | ||
Balance as of end-of-period at Jun. 30, 2024 | 11,029 | 12,991 | (575) | (1,387) |
Balance as of beginning-of-year at Mar. 31, 2024 | 12,978 | (392) | (1,411) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Capital contribution from Lincoln National Corporation | 0 | |||
Stock compensation/issued for benefit plans | 13 | |||
Net income (loss) | 761 | 761 | ||
Dividends paid to Lincoln National Corporation | (944) | |||
Other comprehensive income (loss), net of tax | 24 | 24 | ||
Balance as of end-of-period at Jun. 30, 2024 | $ 11,029 | $ 12,991 | $ (575) | $ (1,387) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Cash Flows from Operating Activities | ||
Net income (loss) | $ 1,418 | $ (1,884) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Realized (gain) loss | (226) | 3,646 |
Market risk benefit (gain) loss | (866) | (168) |
Sales and maturities (purchases) of trading securities, net | 132 | 603 |
Amortization of deferred gain (loss) on business sold through reinsurance | (58) | (17) |
Change in: | ||
Deferred acquisition costs, value of business acquired, deferred sales inducements and deferred front-end loads deferrals | 374 | 321 |
Accrued investment income | (25) | (8) |
Insurance liabilities and reinsurance-related balances | (1,052) | (1,029) |
Accrued expenses | (123) | (55) |
Federal income tax accruals | 567 | (593) |
Cash management agreement | (1,188) | (594) |
Other | (702) | (120) |
Net cash provided by (used in) operating activities | (1,749) | 102 |
Cash Flows from Investing Activities | ||
Purchases of available-for-sale securities and equity securities | (5,230) | (5,256) |
Sales of available-for-sale securities and equity securities | 1,009 | 2,405 |
Maturities of available-for-sale securities | 3,513 | 2,741 |
Purchases of alternative investments | (543) | (317) |
Sales and repayments of alternative investments | 88 | 64 |
Issuance of mortgage loans on real estate | (2,132) | (719) |
Repayment and maturities of mortgage loans on real estate | 621 | 524 |
Repayment (issuance) of policy loans, net | (38) | (68) |
Net change in collateral on investments, certain derivatives and related settlements | 3,814 | (444) |
Cash received from disposition, net of cash transferred | 512 | 0 |
Other | (50) | (158) |
Net cash provided by (used in) investing activities | 1,564 | (1,228) |
Cash Flows from Financing Activities | ||
Capital contribution from Lincoln National Corporation | 0 | 5 |
Issuance (payment) of short-term debt | (184) | (288) |
Payment related to sale-leaseback transactions | (8) | (58) |
Proceeds from certain financing arrangements | 0 | 65 |
Payment related to certain financing arrangements | (88) | (20) |
Deposits of fixed account balances | 8,101 | 7,516 |
Withdrawals of fixed account balances | (6,051) | (5,063) |
Transfers from (to) separate accounts, net | 87 | (381) |
Common stock issued for benefit plans | (8) | (6) |
Dividends paid to Lincoln National Corporation | (195) | (260) |
Net cash provided by (used in) financing activities | 1,654 | 1,510 |
Net increase (decrease) in cash, invested cash and restricted cash | 1,469 | 384 |
Cash, invested cash and restricted cash as of beginning-of-year | 3,193 | 2,499 |
Cash, invested cash and restricted cash as of end-of-period | $ 4,662 | $ 2,883 |
Nature of Operations and Basis
Nature of Operations and Basis of Presentation | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations and Basis of Presentation | Nature of Operations and Basis of Presentation Nature of Operations The Lincoln National Life Insurance Company (“LNL” or the “Company,” which also may be referred to as “we,” “our” or “us”), a wholly owned subsidiary of Lincoln National Corporation (“LNC” or the “Parent Company”), is domiciled in the state of Indiana. We own 100% of the outstanding common stock of 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. 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 15 Basis of Presentation The accompanying unaudited consolidated financial statements are prepared in accordance with United States of America generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions for the Securities and Exchange Commission (“SEC”) Quarterly Report on Form 10-Q, including Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. The information contained in the Notes to Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2023 (“2023 Form 10-K”), should be read in connection with the reading of these interim unaudited consolidated financial statements. Certain GAAP policies, which significantly affect the determination of financial condition, results of operations and cash flows, are summarized in our 2023 Form 10-K. In the opinion of management, these statements include all normal recurring adjustments necessary for a fair presentation of the Company’s results. Interim results for the six months ended June 30, 2024, are not necessarily indicative of the results that may be expected for the full year ending December 31, 2024. All material inter-company accounts and transactions have been eliminated in consolidation. Certain amounts reported in prior periods’ consolidated financial statements have been reclassified to conform to the presentation adopted in the current period. We present disaggregated disclosures in the Notes below for long-duration insurance balances, applying the level of aggregation by reportable segment as follows: Reportable Segment Level of Aggregation Annuities Variable Annuities Fixed Annuities Payout Annuities Life Insurance Traditional Life UL and Other Group Protection Group Protection Retirement Plan Services Retirement Plan Services The 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 are not reflected in the results of the reportable segments listed above. Sale of Wealth Management Business On May 6, 2024, our parent company LNC closed the previously announced sale of all of the ownership interests in the subsidiaries of LNC that comprise its wealth management business, including our subsidiary Lincoln Financial Advisors Corporation, to Osaic Holdings, Inc., a Delaware corporation (“Osaic”), pursuant to the Stock Purchase Agreement entered into between LNC and Osaic on December 14, 2023 (the “Agreement”). LNC received $725 million in cash upon closing, subject to customary post-close adjustments that are not expected to be material. LNL was allocated $598 million of the cash proceeds, and we recognized a $467 million pre-tax realized gain for the three months ended June 30, 2024, net of transaction expenses. Transaction expenses for the three and six months ended June 30, 2024, of $14 million and $24 million, respectively, were reported in commissions and other expenses on the Consolidated Statements of Comprehensive Income (Loss). For more information, see Note 16 |
New Accounting Standards
New Accounting Standards | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
New Accounting Standards | New Accounting Standards Adoption of New Accounting Standards In the current period, we did not adopt any new Accounting Standards Updates (“ASUs”) issued by the Financial Accounting Standards Board that were material in presentation or amount. Future Adoption of New Accounting Standards The following table provides a description of future adoptions of new ASUs that may have an impact on our consolidated financial statements when adopted. 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 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures This ASU aims to enhance reportable segment disclosure requirements. It requires that a public entity disclose significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”), disclose and describe other segment items and report additional measures of a segment’s profit or loss if used by the CODM. January 1, 2024 (Annual Filings) and January 1, 2025 (Quarterly Filings) We are evaluating the impact of this ASU to our consolidated financial statements. ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures This ASU establishes new income tax disclosure requirements, along with adjusting certain existing requirements. It specifically requires expanded and disaggregated disclosures around the tax rate reconciliation. January 1, 2025 We are evaluating the impact of this ASU to our consolidated financial statements. |
Investments
Investments | 6 Months Ended |
Jun. 30, 2024 | |
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 available-for-sale (“AFS”) securities (in millions) were as follows: As of June 30, 2024 Amortized Cost Gross Unrealized Allowance for Credit Losses Fair Value Gains Losses Fixed maturity AFS securities: Corporate bonds $ 68,308 $ 547 $ 6,819 $ 13 $ 62,023 U.S. government bonds 422 3 37 – 388 State and municipal bonds 2,449 45 254 – 2,240 Foreign government bonds 298 12 54 – 256 RMBS 1,696 20 156 6 1,554 CMBS 1,556 4 158 – 1,402 ABS 13,424 75 533 19 12,947 Hybrid and redeemable preferred securities 218 22 12 1 227 Total fixed maturity AFS securities $ 88,371 $ 728 $ 8,023 $ 39 $ 81,037 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 The amortized cost and fair value of fixed maturity AFS securities by contractual maturities (in millions) as of June 30, 2024, were as follows: Amortized Cost Fair Value Due in one year or less $ 4,818 $ 4,766 Due after one year through five years 17,915 17,243 Due after five years through ten years 14,005 12,954 Due after ten years 34,957 30,171 Subtotal 71,695 65,134 Structured securities (RMBS, CMBS, ABS) 16,676 15,903 Total fixed maturity AFS securities $ 88,371 $ 81,037 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 June 30, 2024 Less Than or Equal Greater Than Twelve Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (1) Fixed maturity AFS securities: Corporate bonds $ 21,263 $ 2,618 $ 26,263 $ 4,201 $ 47,526 $ 6,819 U.S. government bonds 88 5 198 32 286 37 State and municipal bonds 689 118 563 136 1,252 254 Foreign government bonds 77 24 89 30 166 54 RMBS 516 37 744 119 1,260 156 CMBS 637 68 555 90 1,192 158 ABS 3,052 158 4,679 375 7,731 533 Hybrid and redeemable preferred securities 10 2 100 10 110 12 Total fixed maturity AFS securities $ 26,332 $ 3,030 $ 33,191 $ 4,993 $ 59,523 $ 8,023 Total number of fixed maturity AFS securities in an unrealized loss position 7,077 As of December 31, 2023 Less Than or Equal Greater Than Twelve Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses 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 (1) As of June 30, 2024, and December 31, 2023, we recognized $18 million and $7 million of gross unrealized losses, respectively, in other comprehensive income (loss) (“OCI”) for fixed maturity AFS securities for which an allowance for credit losses has been recorded. The fair value, gross unrealized losses (in millions) and number of fixed maturity AFS securities where the fair value had declined and remained below amortized cost by greater than 20% were as follows: As of June 30, 2024 Fair Value Gross Unrealized Losses Number of Securities (1) Less than six months $ 3,456 $ 1,043 677 Six months or greater, but less than nine months 2,310 961 493 Nine months or greater, but less than twelve months 378 157 124 Twelve months or greater 3,173 1,383 641 Total $ 9,317 $ 3,544 1,935 As of December 31, 2023 Fair Value Gross Unrealized Losses 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 (1) We may reflect a security in more than one aging category based on various purchase dates. Our gross unrealized losses on fixed maturity AFS securities increased by $1.1 billion for the six months ended June 30, 2024. As discussed further below, we do not believe the unrealized loss position as of June 30, 2024, required an impairment recognized in earnings as: (i) we did not intend to sell these fixed maturity AFS securities; (ii) it is not more likely than not that we will be required to sell the fixed maturity AFS securities before recovery of their amortized cost basis; and (iii) the difference in the fair value compared to the amortized cost was due to factors other than credit loss. Based upon this evaluation as of June 30, 2024, 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 June 30, 2024, 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 June 30, 2024, and December 31, 2023, 96% of the fair value of our corporate bond portfolio was rated investment grade. As of June 30, 2024, and December 31, 2023, the portion of our corporate bond portfolio rated below investment grade had an amortized cost of $2.7 billion and a fair value of $2.6 billion. Based upon the analysis discussed above, we believe that as of June 30, 2024, and December 31, 2023, we would have recovered the amortized cost of each corporate bond. As of June 30, 2024, the unrealized losses associated with our mortgage-backed securities (“MBS”) and asset-backed securities (“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 June 30, 2024, the unrealized losses associated with our hybrid and redeemable preferred securities were attributable primarily to wider credit spreads caused by illiquidity in the market and subordination within the capital structure, as well as credit risk of underlying issuers. For our hybrid and redeemable preferred securities, we evaluated the financial performance of the underlying issuers based upon credit performance and investment ratings and determined that we expected to recover the entire amortized cost of each impaired security. Credit Loss Impairment on Fixed Maturity AFS Securities We regularly review our fixed maturity AFS securities for declines in fair value that we determine to be impairment-related, including those attributable to credit risk factors that may require an allowance for credit losses. Changes in the allowance for credit losses on fixed maturity AFS securities (in millions), aggregated by investment category, were as follows: For the Three Months Ended June 30, 2024 Corporate Bonds RMBS ABS Hybrids Total Balance as of beginning-of-period $ 10 $ 6 $ 4 $ 1 $ 21 Additions from purchases of PCD debt securities (1) – – – – – Additions for securities for which credit losses were not previously recognized 1 – 15 – 16 Additions (reductions) for securities for which credit losses were previously recognized 8 – – – 8 Reductions for disposed securities (1) – – – (1) Reductions for securities charged-off (5) – – – (5) Balance as of end-of-period (2) $ 13 $ 6 $ 19 $ 1 $ 39 For the Six Months Ended June 30, 2024 Corporate Bonds RMBS ABS Hybrids Total Balance as of beginning-of-year $ 8 $ 6 $ 4 $ 1 $ 19 Additions from purchases of PCD debt securities (1) – – – – – Additions for securities for which credit losses were not previously recognized 2 – 15 – 17 Additions (reductions) for securities for which credit losses were previously recognized 11 – – – 11 Reductions for disposed securities (3) – – – (3) Reductions for securities charged-off (5) – – – (5) Balance as of end-of-period (2) $ 13 $ 6 $ 19 $ 1 $ 39 For the Three Months Ended June 30, 2023 Corporate Bonds RMBS ABS Hybrids Total Balance as of beginning-of-period $ 26 $ 6 $ 4 $ 1 $ 37 Additions from purchases of PCD debt securities (1) – – – – – Additions for securities for which credit losses were not previously recognized 2 – – – 2 Additions (reductions) for securities for which credit losses were previously recognized (3) – 1 – (2) Reductions for securities charged-off (12) – – – (12) Balance as of end-of-period (2) $ 13 $ 6 $ 5 $ 1 $ 25 For the Six Months Ended June 30, 2023 Corporate Bonds RMBS ABS Hybrids Total Balance as of beginning-of-year $ 9 $ 7 $ 4 $ 1 $ 21 Additions from purchases of PCD debt securities (1) – – – – – Additions for securities for which credit losses were not previously recognized 20 – – – 20 Additions (reductions) for securities for which credit losses were previously recognized (3) (1) 1 – (3) Reductions for disposed securities (1) – – – (1) Reductions for securities charged-off (12) – – – (12) Balance as of end-of-period (2) $ 13 $ 6 $ 5 $ 1 $ 25 (1) Represents purchased credit-deteriorated (“PCD”) fixed maturity AFS securities. (2) As of June 30, 2024 and 2023 , accrued investment income on fixed maturity AFS securities totaled $811 million and $1.1 billion , respectively, and was excluded from the estimate of credit losses. Mortgage Loans on Real Estate The following provides the current and past due composition of our mortgage loans on real estate (in millions): As of June 30, 2024 As of December 31, 2023 Commercial Residential Total Commercial Residential Total Current $ 17,377 $ 2,583 $ 19,960 $ 17,165 $ 1,665 $ 18,830 30 to 59 days past due – 30 30 61 28 89 60 to 89 days past due 22 13 35 – 9 9 90 or more days past due 34 59 93 – 60 60 Allowance for credit losses (92) (40) (132) (86) (28) (114) Unamortized premium (discount) (6) 62 56 (7) 43 36 Mark-to-market gains (losses) (1) (33) (1) (34) (36) (1) (37) Total carrying value $ 17,302 $ 2,706 $ 20,008 $ 17,097 $ 1,776 $ 18,873 (1) Represents the mark-to-market on certain mortgage loans on real estate that support our modified coinsurance agreements where the investment results are passed directly to the reinsurers, and for which we have elected the fair value option. As of June 30, 2024, and December 31, 2023, $30 million and less than $1 million, respectively, of such mortgage loans on real estate were 90 or more days past due. See Note 12 Losses from loan modifications were $3 million and less than $1 million for the three months ended June 30, 2024 and 2023, respectively, and $3 million and less than $1 million for the six months ended June 30, 2024 and 2023, respectively, reported in realized gain (loss) on the Consolidated Statements of Comprehensive Income (Loss). The amortized cost of mortgage loans on real estate on nonaccrual status (in millions) was as follows, excluding certain mortgage loans on real estate that support our modified coinsurance agreements where the investment results are passed directly to the reinsurers: As of As of December 31, 2023 Commercial mortgage loans on real estate $ 26 $ – Residential mortgage loans on real estate 60 62 Total $ 86 $ 62 We use loan-to-value (“LTV”) 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 June 30, 2024 LTV Debt-Service Coverage Ratio LTV Debt-Service Coverage Ratio LTV Debt-Service Coverage Ratio Total Origination Year 2024 $ 746 1.47 $ 31 1.32 $ – – $ 777 2023 1,345 1.58 47 1.33 – – 1,392 2022 1,732 1.74 100 1.41 1 1.17 1,833 2021 2,296 2.03 49 1.47 – – 2,345 2020 1,176 2.46 4 1.05 – – 1,180 2019 and prior 9,766 2.72 134 1.32 – – 9,900 Total $ 17,061 $ 365 $ 1 $ 17,427 As of December 31, 2023 LTV Debt-Service Coverage Ratio LTV Debt-Service Coverage Ratio LTV Debt-Service Coverage Ratio 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 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 June 30, 2024 Performing Nonperforming Total Origination Year 2024 $ 957 $ – $ 957 2023 556 4 560 2022 512 24 536 2021 448 15 463 2020 73 3 76 2019 and prior 141 14 155 Total $ 2,687 $ 60 $ 2,747 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 Credit Losses on Mortgage Loans on Real Estate In connection with our recognition of an allowance for credit losses for mortgage loans on real estate, we perform a quantitative analysis using a probability of default/loss given default/exposure at default approach to estimate expected credit losses in our mortgage loan portfolio as well as unfunded commitments related to commercial mortgage loans, exclusive of certain mortgage loans held at fair value. Changes in the allowance for credit losses on mortgage loans on real estate (in millions) were as follows: For the Three Months Ended Commercial Residential Total Balance as of beginning-of-period $ 84 $ 31 $ 115 Additions (reductions) from provision for credit loss expense (1) 8 9 17 Additions from purchases of PCD mortgage loans on real estate – – – Balance as of end-of-period (2) $ 92 $ 40 $ 132 For the Six Months Ended Commercial Residential Total Balance as of beginning-of-year $ 86 $ 28 $ 114 Additions (reductions) from provision for credit loss expense (1) 6 12 18 Additions from purchases of PCD mortgage loans on real estate – – – Balance as of end-of-period (2) $ 92 $ 40 $ 132 For the Three Months Ended Commercial Residential Total Balance as of beginning-of-period $ 83 $ 20 $ 103 Additions (reductions) from provision for credit loss expense (1) (2) 3 1 Additions from purchases of PCD mortgage loans on real estate – – – Balance as of end-of-period (2) $ 81 $ 23 $ 104 For the Six Months Ended Commercial Residential Total Balance as of beginning-of-year $ 83 $ 15 $ 98 Additions (reductions) from provision for credit loss expense (1) (2) 8 6 Additions from purchases of PCD mortgage loans on real estate – – – Balance as of end-of-period (2) $ 81 $ 23 $ 104 (1) We recognized less than $1 million and $(2) million of credit loss benefit (expense) related to unfunded commitments for mortgage loans on real estate for the three months ended June 30, 2024 and 2023, respectively, and $1 million and $(1) million for the six months ended June 30, 2024 and 2023, respectively. (2) Accrued investment income on mortgage loans on real estate totaled $80 million and $53 million as of June 30, 2024 and 2023 , respectively, and was excluded from the estimate of credit losses. Alternative Investments As of June 30, 2024, and December 31, 2023 , alternative investments included investments in 342 and 332 different partnerships, respectively, and represented approximately 3% of total investments. Impairments on Fixed Maturity AFS Securities Details underlying intent to sell impairments and credit loss benefit (expense) incurred as a result of impairments that were recognized in net income (loss) and included in realized gain (loss) on fixed maturity AFS securities (in millions) were as follows: For the Three For the Six 2024 2023 2024 2023 Intent to Sell Impairments (1) Fixed maturity AFS securities: Corporate bonds $ – $ (2,748) $ – $ (2,748) State and municipal bonds – (151) – (151) RMBS – (55) – (55) CMBS – (52) – (52) ABS – (53) – (53) Hybrid and redeemable preferred securities – (3) – (3) Total intent to sell impairments $ – $ (3,062) $ – $ (3,062) Credit Loss Benefit (Expense) Fixed maturity AFS securities: Corporate bonds $ (8) $ 1 $ (10) $ (16) RMBS – – – 1 ABS (15) – (15) – Total credit loss benefit (expense) $ (23) $ 1 $ (25) $ (15) (1) The three and six months ended June 30, 2023, include 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 fourth quarter 2023 reinsurance transaction. 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 June 30, 2024 As of December 31, 2023 Carrying Value Fair Value Carrying Value Fair Value Collateral payable for derivative investments (1) $ 7,608 $ 7,608 $ 5,127 $ 5,127 Securities pledged under securities lending agreements (2) 202 194 205 197 Investments pledged for FHLBI (3) 3,200 4,396 2,650 3,603 Total payables for collateral on investments $ 11,010 $ 12,198 $ 7,982 $ 8,927 (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 5 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 Federal Home Loan Bank (“FHLB”) of Indianapolis (“FHLBI”) are included in fixed maturity AFS securities and mortgage loans on real estate on the Consolidated Balance Sheets. The collateral requirements are generally 105% to 115% of the fair value for fixed maturity AFS securities and 155% to 175% of the fair value for mortgage loans on real estate. The cash received in these transactions is primarily invested in cash and invested cash or fixed maturity AFS securities. We have repurchase agreements through which we can obtain liquidity by pledging securities. The collateral requirements are generally 80% to 95% of the fair value of the securities, and our agreements with third parties contain contractual provisions to allow for additional collateral to be obtained when necessary. The cash received in our repurchase program is typically invested in fixed maturity AFS securities. As of June 30, 2024, and December 31, 2023, 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 Six 2024 2023 Collateral payable for derivative investments $ 2,481 $ 1,312 Securities pledged under securities lending agreements (3) (8) Investments pledged for FHLBI 550 (980) Total increase (decrease) in payables for collateral on investments $ 3,028 $ 324 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 June 30, 2024 Overnight and Continuous Up to 30 Days 30-90 Days Greater Than Total Securities Lending Corporate bonds $ 180 $ – $ – $ – $ 180 Equity securities 7 – – – 7 U.S. government bonds 15 – – – 15 Total gross secured borrowings $ 202 $ – $ – $ – $ 202 As of December 31, 2023 Overnight and Continuous 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 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 June 30, 2024, the fair value of this 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 that we are permitted to sell or re-pledge. As of June 30, 2024, the fair value of this collateral received that we are permitted to sell or re-pledge was $1.0 billion, and we had re-pledged $60 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 $36 million as of June 30, 2024. Investment Commitments As of June 30, 2024, our investment commitments were $4.1 billion, which included $3.1 billion of limited partnerships (“LPs”), $595 million of mortgage loans on real estate and $398 million of private placement securities. Concentrations of Financial Instruments As of June 30, 2024, 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 $1.5 billion and $1.1 billion, respectively, or 1% of total investments. 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. These concentrations include fixed maturity AFS, trading and equity securities. |
Variable Interest Entities
Variable Interest Entities | 6 Months Ended |
Jun. 30, 2024 | |
Variable Interest Entities [Abstract] | |
Variable Interest Entities | Variable Interest Entities Unconsolidated Variable Interest Entities Structured Securities Through our investment activities, we make passive investments in structured securities issued by variable interest entities (“VIEs”) for which we are not the manager. These structured securities include our ABS, residential mortgage-backed securities (“RMBS”) and commercial mortgage-backed securities (“CMBS”). We have not provided financial or other support with respect to these VIEs other than our original investment. We have determined that we are not the primary beneficiary of these VIEs due to the relative size of our investment in comparison to the principal amount of the structured securities issued by the VIEs and the level of credit subordination that reduces our obligation to absorb losses or right to receive benefits. Our maximum exposure to loss on these structured securities is limited to the amortized cost for these investments. We recognize our variable interest in these VIEs at fair value on the Consolidated Balance Sheets. For information about these structured securities, see Note 3 . 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 $4.5 billion and $4.0 billion as of June 30, 2024 , and December 31, 2023 , respectively. |
Derivative Instruments
Derivative Instruments | 6 Months Ended |
Jun. 30, 2024 | |
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 12 for additional disclosures related to the fair value of our derivative instruments. Interest Rate Contracts We use derivative instruments as part of our interest rate risk management strategy. These instruments are economic hedges unless otherwise noted and include: Forward-Starting Interest Rate Swaps We use forward-starting interest rate swaps to hedge the interest rate exposure within our 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. Bond Forwards and Reverse Treasury Locks We use bond forwards and 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 and fair value 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. Primary Risks Managed by Derivatives 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 June 30, 2024 As of December 31, 2023 Notional Amounts Fair Value Notional Amounts Fair Value Asset Liability Asset Liability Qualifying Hedges Cash flow hedges: Interest rate contracts (1) $ 545 $ 2 $ 17 $ 485 $ 11 $ 47 Foreign currency contracts (1) 4,849 511 49 4,662 423 78 Total cash flow hedges 5,394 513 66 5,147 434 125 Fair value hedges: Interest rate contracts (1) 444 4 19 450 1 39 Foreign currency contracts (1) 25 1 – 25 – 1 Total fair value hedges 469 5 19 475 1 40 Non-Qualifying Hedges Interest rate contracts (1) 73,628 813 1,173 90,829 636 979 Foreign currency contracts (1) 361 15 1 306 11 6 Equity market contracts (1) 254,659 14,180 5,995 225,251 10,244 4,227 Credit contracts (1) 44 – – 91 – – LPR ceded derivative (2) – 202 – – 206 – Embedded derivatives: Reinsurance-related (3) – 585 – – 493 – RILA, fixed indexed annuity and IUL contracts (4) – 1,756 11,417 – 940 9,077 Total derivative instruments $ 334,555 $ 18,069 $ 18,671 $ 322,099 $ 12,965 $ 14,454 (1) These asset and liability balances are presented on a gross basis. Amounts are reported in derivative investments and other liabilities on the Consolidated Balance Sheets after the evaluation for right of offset subject to master netting agreements. (2) Reported in other assets on the Consolidated Balance Sheets. (3) Reported in 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 June 30, 2024 Less Than 1 Year 1 - 5 6 - 10 11 - 30 Over 30 Total Interest rate contracts (1) $ 10,391 $ 19,232 $ 23,278 $ 21,716 $ – $ 74,617 Foreign currency contracts (2) 379 1,028 1,775 2,011 42 5,235 Equity market contracts 209,057 35,253 8,177 8 2,164 254,659 Credit contracts – 44 – – – 44 Total derivative instruments with notional amounts $ 219,827 $ 55,557 $ 33,230 $ 23,735 $ 2,206 $ 334,555 (1) As of June 30, 2024 , the latest maturity date for which we were hedging our exposure to the variability in future cash flows for these instruments was December 1, 2026. (2) As of June 30, 2024, 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 Hedged Assets / (Liabilities) Cumulative Fair Value Hedging Adjustment Included in the Amortized Cost of the Hedged Assets / (Liabilities) As of As of December 31, 2023 As of As of December 31, 2023 Line Item in the Consolidated Balance Sheets in which the Hedged Item is Included Fixed maturity AFS securities, at fair value $ 500 $ 534 $ 14 $ 39 The change in our unrealized gain (loss) on derivative instruments within accumulated other comprehensive income (loss) (“AOCI”) (in millions) was as follows: For the Six 2024 2023 Unrealized Gain (Loss) on Derivative Instruments Balance as of beginning-of-year $ 249 $ 301 Other comprehensive income (loss): Unrealized holding gains (losses) arising during the period: Cash flow hedges: Interest rate contracts 18 124 Foreign currency contracts 28 80 Change in foreign currency exchange rate adjustment 117 (110) Income tax benefit (expense) (35) (20) Less: Reclassification adjustment for gains (losses) included in net income (loss): Cash flow hedges: Interest rate contracts (1) (1) – Foreign currency contracts (1) 29 27 Foreign currency contracts (2) (1) 3 Income tax benefit (expense) (6) (6) Balance as of end-of-period $ 356 $ 351 (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 2024 2023 Realized Gain (Loss) Net Investment Income Benefits Realized Gain (Loss) Net Investment Income Benefits Total Line Items in which the Effects of Fair Value or Cash Flow Hedges are Recorded $ 283 $ 1,232 $ (2,726) $ (3,252) $ 1,476 $ 1,676 Qualifying Hedges Gain or (loss) on fair value hedging relationships: Interest rate contracts: Hedged items – (7) – – (19) – Derivatives designated as hedging instruments – 7 – – 19 – 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 (1) 14 – – 13 – Non-Qualifying Hedges Interest rate contracts (115) – – (319) – – Equity market contracts 817 – – 809 – – Credit contracts – – – (1) – – LPR ceded derivative – – (1) – – (3) Embedded derivatives: Reinsurance-related 42 – – 76 – – RILA, fixed indexed annuity and IUL contracts (328) – – (1,554) – – Gain (Loss) Recognized in Income 2024 2023 Realized Gain (Loss) Net Investment Income Benefits Realized Gain (Loss) Net Investment Income Benefits Total Line Items in which the Effects of Fair Value or Cash Flow Hedges are Recorded $ 226 $ 2,456 $ (989) $ (3,646) $ 2,885 $ 3,871 Qualifying Hedges Gain or (loss) on fair value hedging relationships: Interest rate contracts: Hedged items – (24) – – (3) – Derivatives designated as hedging instruments – 24 – – 3 – Foreign currency contracts: Hedged items – (1) – – – – Derivatives designated as hedging instruments – 1 – – – – 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 (1) 29 – 3 27 – Non-Qualifying Hedges Interest rate contracts (277) – – 12 – – Foreign currency contracts – – – (2) – – Equity market contracts 2,952 – – 750 – – Commodity contracts – – – 11 – – Credit contracts – – – (2) – – LPR ceded derivative – – 4 – – 10 Embedded derivatives: Reinsurance-related 92 – – 9 – – RILA, fixed indexed annuity and IUL contracts (1,970) – – (2,266) – – As of June 30, 2024, $64 million of t he 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 six months ended June 30, 2024 and 2023 , 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 June 30, 2024 and December 31, 2023, 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 June 30, 2024 , 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 nearly all ISDA agreements, we and LLANY have agreed to maintain certain financial strength ratings. A downgrade below these levels could result in termination of derivative contracts, at which time any amounts payable by us would be dependent on the market value of the underlying derivative contracts. In certain transactions, we and the counterparty have entered into a credit support annex requiring either party to post collateral when net exposures exceed pre-determined thresholds. These thresholds vary by counterparty and credit rating. The amount of such exposure is essentially the net replacement cost or market value less collateral held for such agreements with each counterparty if the net market value is in our favor. We did not have any exposure as of June 30, 2024 , or December 31, 2023 . 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 June 30, 2024 As of December 31, 2023 S&P Collateral Collateral Collateral Collateral AA- $ 3,145 $ (49) $ 2,330 $ (63) A+ 3,688 – 2,422 (125) A 70 – 82 – A- 676 – 273 – $ 7,579 $ (49) $ 5,107 $ (188) Balance Sheet Offsetting Information related to the effects of offsetting on the Consolidated Balance Sheets (in millions) was as follows: As of June 30, 2024 Derivative Instruments Embedded Derivative Instruments Total Financial Assets Gross amount of recognized assets $ 15,502 $ 2,341 $ 17,843 Gross amounts offset (7,030) – (7,030) Net amount of assets 8,472 2,341 10,813 Gross amounts not offset: Cash collateral (7,579) – (7,579) Non-cash collateral (1) (893) – (893) Net amount $ – $ 2,341 $ 2,341 Financial Liabilities Gross amount of recognized liabilities 224 11,417 11,641 Gross amounts offset (24) – (24) Net amount of liabilities 200 11,417 11,617 Gross amounts not offset: Cash collateral (49) – (49) Non-cash collateral (2) (151) – (151) Net amount $ – $ 11,417 $ 11,417 (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 $57 million, as the collateral offset is limited to the net estimated fair value of derivatives after application of netting arrangements. As of December 31, 2023 Derivative Instruments Embedded Derivative Instruments 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. |
DAC, VOBA, DSI and DFEL
DAC, VOBA, DSI and DFEL | 6 Months Ended |
Jun. 30, 2024 | |
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 deferred acquisition costs (“DAC”), value of business acquired (“VOBA”) and deferred sales inducements (“DSI”) (in millions) to the Consolidated Balance Sheets: As of As of DAC, VOBA and DSI Variable Annuities $ 4,024 $ 4,025 Fixed Annuities 444 456 Traditional Life 1,358 1,374 UL and Other 6,096 6,139 Group Protection 133 154 Retirement Plan Services 282 270 Total DAC, VOBA and DSI $ 12,337 $ 12,418 The following table reconciles deferred front-end loads (“DFEL”) (in millions) to the Consolidated Balance Sheets: As of As of DFEL Variable Annuities $ 296 $ 300 UL and Other (1) 5,984 5,579 Other Operations (2) 47 44 Total DFEL $ 6,327 $ 5,923 (1) We reported $2.3 billion of ceded DFEL in reinsurance recoverables on the Consolidated Balance Sheets as of June 30, 2024, and 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 $47 million and $44 million of ceded DFEL in reinsurance recoverables on the Consolidated Balance Sheets as of June 30, 2024, and December 31, 2023, respectively. The following tables summarize the changes in DAC (in millions): For the Six Months Ended June 30, 2024 Variable Fixed Traditional UL and Group Protection Retirement Balance as of beginning-of-year $ 3,868 $ 421 $ 1,332 $ 5,709 $ 154 $ 244 Business acquired (sold) through reinsurance – – – (73) (38) – Deferrals 190 23 61 198 70 10 Amortization (185) (32) (73) (149) (53) (10) Balance as of end-of-period $ 3,873 $ 412 $ 1,320 $ 5,685 $ 133 $ 244 For the Six Months Ended June 30, 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 176 23 105 239 53 10 Amortization (187) (34) (71) (144) (49) (9) Balance as of end-of-period $ 3,869 $ 428 $ 1,320 $ 5,613 $ 145 $ 242 DAC amortization expense of $252 million and $502 million was recorded in commissions and other expenses on the Consolidated Statements of Comprehensive Income (Loss) for the three and six months ended June 30, 2024 , respectively, and $248 million and $494 million, respectively, for the corresponding periods in 2023 . The following tables summarize the changes in VOBA (in millions): For the Six Months Ended Fixed Traditional UL and Balance as of beginning-of-year $ 15 $ 42 $ 402 Deferrals – – 1 Amortization (1) (4) (19) Balance as of end-of-period $ 14 $ 38 $ 384 For the Six Months Ended Fixed Traditional UL and Balance as of beginning-of-year $ 17 $ 50 $ 454 Deferrals – – 1 Amortization (1) (4) (23) Balance as of end-of-period $ 16 $ 46 $ 432 VOBA amortization expense of $12 million and $24 million was recorded in commissions and other expenses on the Consolidated Statements of Comprehensive Income (Loss) for the three and six months ended June 30, 2024 , respectively, and $14 million and $28 million, respectively, for the corresponding periods in 2023 . No additions or write-offs were recorded for each respective period. The following tables summarize the changes in DSI (in millions): For the Six Months Ended Variable Annuities Fixed UL and Retirement Plan Services Balance as of beginning-of-year $ 157 $ 20 $ 28 $ 26 Deferrals 1 – 1 12 Amortization (7) (2) (2) – Balance as of end-of-period $ 151 $ 18 $ 27 $ 38 For the Six Months Ended Variable Annuities Fixed UL and Retirement Plan Services Balance as of beginning-of-year $ 167 $ 23 $ 30 $ 17 Deferrals 2 – – 2 Amortization (8) (2) (1) – Balance as of end-of-period $ 161 $ 21 $ 29 $ 19 DSI amortization expense of $5 million and $11 million was recorded in interest credited on the Consolidated Statements of Comprehensive Income (Loss) for the three and six months ended June 30, 2024 and 2023. The following tables summarize the changes in DFEL (in millions): For the Six Months Ended June 30, 2024 For the Six Months Ended June 30, 2023 Variable Annuities UL and Variable Annuities UL and Balance as of beginning-of-year $ 300 $ 5,579 $ 310 $ 4,766 Deferrals 9 544 10 529 Amortization (13) (139) (15) (126) Balance as of end-of-period 296 5,984 305 5,169 Less: ceded DFEL – 2,346 – 30 Balance as of end-of-period, net of reinsurance $ 296 $ 3,638 $ 305 $ 5,139 DFEL amortization of $78 million and $152 million was recorded in fee income on the Consolidated Statements of Comprehensive Income (Loss) for the three and six months ended June 30, 2024 , respectively, and $72 million and $141 million, respectively, for the corresponding periods in 2023. |
Reinsurance
Reinsurance | 6 Months Ended |
Jun. 30, 2024 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance | Reinsurance Lincoln Pinehurst Reinsurance Company (Bermuda) Limited Effective June 30, 2024, we entered into a reinsurance agreement with Lincoln Pinehurst Reinsurance Company (Bermuda) Limited (“LPINE”), an affiliated reinsurer, to reinsure certain blocks of in-force group protection and fixed annuity products. This agreement is structured as coinsurance with funds withheld. As significant insurance risk was transferred for the group protection block, amounts recoverable from LPINE were $4.2 billion as of June 30, 2024. We recorded a deferred loss of $144 million as of June 30, 2024. Fixed annuities are not life-contingent and do not contain significant insurance risk; therefore, we recorded deposit assets of $6.8 billion as of June 30, 2024. In this coinsurance with funds withheld reinsurance agreement, we as the ceding company withhold, and therefore retain, the assets backing the reserves and deposit assets. We held investments with a carrying value of $11.0 billion in support of reserves associated with the LPINE transaction in a funds withheld arrangement as of June 30, 2024, which consisted of the following (in millions): Fixed maturity AFS securities $ 9,349 Mortgage loans on real estate 1,531 Accrued investment income 94 Total $ 10,974 See “Realized Gain (Loss)” in Note 16 LNBAR We reinsure blocks of business to LNBAR, an affiliated reinsurer. Effective October 1, 2023, we entered into an agreement with 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 $14.4 billion and $13.2 billion as of June 30, 2024, and December 31, 2023, respectively. We reported a deferred gain on the transaction of $4.2 billion as of June 30, 2024, and December 31, 2023. We amortized $40 million and $83 million of the deferred gain during the three and six months ended June 30, 2024, respectively. We held other investments and cash and invested cash with a carrying value of $1.1 billion and $871 million as of June 30, 2024, and December 31, 2023, 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 $13.3 billion and $13.0 billion as of June 30, 2024, and December 31, 2023, respectively. Fortitude Reinsurance Company Ltd. Effective October 1, 2023, we entered into a reinsurance agreement with Fortitude Reinsurance Company Ltd. (“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 June 30, 2024, and 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 June 30, 2024, and December 31, 2023. We reported a deferred loss on the transaction of $2.6 billion and $2.7 billion as of June 30, 2024, and December 31, 2023, respectively. We amortized $22 million and $44 million of the deferred loss during the three and six months ended June 30, 2024, respectively. Annuities that are not life-contingent do not contain significant insurance risk; therefore, we reported deposit assets for these contracts of $3.6 billion and $4.2 billion as of June 30, 2024, and December 31, 2023, respectively. |
MRBs
MRBs | 6 Months Ended |
Jun. 30, 2024 | |
Insurance [Abstract] | |
MRBs | MRBs The following table reconciles market risk benefits (“MRBs”) (in millions) to MRB assets and MRB liabilities on the Consolidated Balance Sheets: As of June 30, 2024 As of December 31, 2023 Assets Liabilities Net (Assets) Liabilities Assets Liabilities Net (Assets) Liabilities Variable Annuities $ 4,620 $ 1,152 $ (3,468) $ 3,763 $ 1,583 $ (2,180) Fixed Annuities 95 119 24 96 128 32 Retirement Plan Services 39 4 (35) 35 5 (30) Total MRBs $ 4,754 $ 1,275 $ (3,479) $ 3,894 $ 1,716 $ (2,178) The following table summarizes the balances of and changes in net MRB (assets) liabilities (in millions): As of or For the Six Months Ended As of or For the Six Months Ended Variable Annuities Fixed Annuities Retirement Plan Services Variable Annuities Fixed Annuities Retirement Plan Services Balance as of beginning-of-year $ (2,180) $ 32 $ (30) $ (662) $ (45) $ (22) Less: Effect of cumulative changes in non-performance risk (1,299) (58) (4) (2,173) (40) (2) Balance as of beginning-of-year, before the effect of changes in non-performance risk (881) 90 (26) 1,511 (5) (20) Issuances 5 – – 3 – – Attributed fees collected 760 16 3 755 17 3 Benefit payments (21) – – (35) – – Effect of changes in interest rates (1,470) (27) (8) 215 3 10 Effect of changes in equity markets (1,469) (15) (5) (2,205) (6) (9) Effect of changes in equity index volatility (63) (4) – (372) 2 (3) In-force updates and other changes in MRBs (1) 153 2 1 120 2 – Balance as of end-of-period, before the effect of changes in non-performance risk (2,986) 62 (35) (8) 13 (19) Effect of cumulative changes in non-performance risk (482) (38) – (2,288) (47) (9) Balance as of end-of-period (3,468) 24 (35) (2,296) (34) (28) Less: ceded MRB assets (liabilities) (2,143) – (8) (1,035) – (4) Balance as of end-of-period, net of reinsurance $ (1,325) $ 24 $ (27) $ (1,261) $ (34) $ (24) Weighted-average age of policyholders (years) 72 69 63 72 68 63 Net amount at risk (2) $ 2,135 $ 221 $ 3 $ 4,783 $ 213 $ 6 (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) 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 guaranteed living benefits (“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. See “MRBs” in Note 12 |
Separate Accounts
Separate Accounts | 6 Months Ended |
Jun. 30, 2024 | |
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 As of 2024 2023 Mutual funds and collective investment trusts $ 164,537 $ 157,578 Exchange-traded funds 345 350 Fixed maturity AFS securities 162 167 Cash and invested cash 4 25 Other investments 151 137 Total separate account assets $ 165,199 $ 158,257 The following table reconciles separate account liabilities (in millions) to the Consolidated Balance Sheets: As of As of 2024 2023 Variable Annuities $ 116,770 $ 113,356 UL and Other 27,381 25,150 Retirement Plan Services 20,993 19,699 Other Operations (1) 55 52 Total separate account liabilities $ 165,199 $ 158,257 (1) Represents separate account liabilities reported in Other Operations primarily attributable to the indemnity reinsurance agreements with Protective ($48 million and $46 million as of June 30, 2024, and December 31, 2023, 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 Six As of or For the Six Variable Annuities UL and Other Retirement Plan Services Variable Annuities UL and Other Retirement Plan Services Balance as of beginning-of-year $ 113,356 $ 25,150 $ 19,699 $ 105,573 $ 20,920 $ 16,996 Gross deposits 1,925 695 1,105 1,367 821 1,078 Withdrawals (6,604) (193) (1,514) (4,915) (154) (1,123) Policyholder assessments (1,301) (493) (89) (1,251) (476) (79) Change in market performance 9,026 2,335 1,802 9,950 2,374 1,953 Net transfers from (to) general account 368 (113) (10) 274 (76) (36) Balance as of end-of-period $ 116,770 $ 27,381 $ 20,993 $ 110,998 $ 23,409 $ 18,789 Cash surrender value $ 115,389 $ 24,979 $ 20,979 $ 109,501 $ 21,080 $ 18,774 |
Policyholder Account Balances
Policyholder Account Balances | 6 Months Ended |
Jun. 30, 2024 | |
Policyholder Account Balance [Abstract] | |
Policyholder Account Balances | Policyholder Account Balances The following table reconciles policyholder account balances (in millions) to the Consolidated Balance Sheets: As of As of 2024 2023 Variable Annuities $ 32,853 $ 29,141 Fixed Annuities 25,814 25,330 UL and Other 36,474 36,784 Retirement Plan Services 23,598 23,784 Other (1) 4,976 5,277 Total policyholder account balances $ 123,715 $ 120,316 (1) Represents policyholder account balances reported primarily in Other Operations attributable to the indemnity reinsurance agreements with Protective ($4.6 billion and $4.9 billion as of June 30, 2024, and December 31, 2023, 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 Six Months Ended June 30, 2024 Variable Annuities Fixed UL and Retirement Balance as of beginning-of-year $ 29,141 $ 25,330 $ 36,784 $ 23,784 Gross deposits 2,102 2,646 1,736 1,636 Withdrawals (413) (2,600) (739) (2,275) Policyholder assessments (1) (31) (2,232) (7) Net transfers from (to) separate account (146) – 113 120 Interest credited 328 382 726 340 Change in fair value of embedded derivative instruments 1,842 87 86 – Balance as of end-of-period $ 32,853 $ 25,814 $ 36,474 $ 23,598 Weighted-average crediting rate 2.1 % 3.0 % 4.0 % 2.9 % Net amount at risk (1)(2) $ 2,135 $ 221 $ 298,237 $ 3 Cash surrender value 31,650 24,738 32,091 23,570 As of or For the Six Months Ended June 30, 2023 Variable Annuities Fixed UL and Retirement Balance as of beginning-of-year $ 22,184 $ 23,338 $ 37,258 $ 25,138 Gross deposits 2,437 1,919 1,826 1,317 Withdrawals (328) (1,920) (705) (2,094) Policyholder assessments (1) (28) (2,224) (7) Net transfers from (to) separate account (198) – 76 (259) Interest credited 240 312 735 335 Change in fair value of embedded derivative instruments 1,923 165 76 – Balance as of end-of-period $ 26,257 $ 23,786 $ 37,042 $ 24,430 Weighted-average crediting rate 2.0 % 2.6 % 4.0 % 2.7 % Net amount at risk (1)(2) $ 4,783 $ 213 $ 301,018 $ 6 Cash surrender value 25,146 22,889 32,822 24,425 (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 June 30, 2024 At 1-50 51-100 101-150 Greater Total Range of Guaranteed Minimum Crediting Rate Variable Annuities Up to 1.00% $ – $ – $ – $ – $ – $ – 1.01% - 2.00% 4 – – – 6 10 2.01% - 3.00% 539 – – – – 539 3.01% - 4.00% 1,289 – – – – 1,289 4.01% and above 9 – – – – 9 Other (1) – – – – – 31,006 Total $ 1,841 $ – $ – $ – $ 6 $ 32,853 Fixed Annuities Up to 1.00% $ 615 $ 609 $ 594 $ 463 $ 2,464 $ 4,745 1.01% - 2.00% 304 133 279 329 4,301 5,346 2.01% - 3.00% 1,694 40 5 1 31 1,771 3.01% - 4.00% 1,036 – – – – 1,036 4.01% and above 173 – – – – 173 Other (1) – – – – – 12,743 Total $ 3,822 $ 782 $ 878 $ 793 $ 6,796 $ 25,814 UL and Other Up to 1.00% $ 264 $ – $ 218 $ 119 $ 42 $ 643 1.01% - 2.00% 544 – – – 3,186 3,730 2.01% - 3.00% 6,797 10 150 – – 6,957 3.01% - 4.00% 15,068 – 1 – – 15,069 4.01% and above 3,679 – – – – 3,679 Other (1) – – – – – 6,396 Total $ 26,352 $ 10 $ 369 $ 119 $ 3,228 $ 36,474 Retirement Plan Services Up to 1.00% $ 489 $ 502 $ 727 $ 3,684 $ 4,511 $ 9,913 1.01% - 2.00% 509 1,648 1,382 1,154 220 4,913 2.01% - 3.00% 2,394 25 1 – – 2,420 3.01% - 4.00% 4,667 57 5 5 – 4,734 4.01% and above 1,618 – – – – 1,618 Total $ 9,677 $ 2,232 $ 2,115 $ 4,843 $ 4,731 $ 23,598 As of June 30, 2023 At 1-50 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% 619 – – – – 619 3.01% - 4.00% 1,470 – – – – 1,470 4.01% and above 10 – – – – 10 Other (1) – – – – – 24,146 Total $ 2,103 $ – $ – $ – $ 8 $ 26,257 Fixed Annuities Up to 1.00% $ 756 $ 414 $ 515 $ 467 $ 2,296 $ 4,448 1.01% - 2.00% 577 133 194 498 1,083 2,485 2.01% - 3.00% 1,746 3 6 – – 1,755 3.01% - 4.00% 1,171 – – – – 1,171 4.01% and above 184 – – – – 184 Other (1) – – – – – 13,743 Total $ 4,434 $ 550 $ 715 $ 965 $ 3,379 $ 23,786 UL and Other Up to 1.00% $ 302 $ – $ 206 $ 46 $ 505 $ 1,059 1.01% - 2.00% 557 – 6 – 3,142 3,705 2.01% - 3.00% 7,217 10 139 – – 7,366 3.01% - 4.00% 15,269 – 1 – – 15,270 4.01% and above 3,807 – – – – 3,807 Other (1) – – – – – 5,835 Total $ 27,152 $ 10 $ 352 $ 46 $ 3,647 $ 37,042 Retirement Plan Services Up to 1.00% $ 601 $ 746 $ 3,092 $ 2,693 $ 2,422 $ 9,554 1.01% - 2.00% 637 2,880 1,184 531 – 5,232 2.01% - 3.00% 2,647 1 – – – 2,648 3.01% - 4.00% 5,349 1 – – – 5,350 4.01% and above 1,646 – – – – 1,646 Total $ 10,880 $ 3,628 $ 4,276 $ 3,224 $ 2,422 $ 24,430 (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 | 6 Months Ended |
Jun. 30, 2024 | |
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 As of 2024 2023 Payout Annuities (1) $ 2,001 $ 2,084 Traditional Life (1) 3,514 3,553 Group Protection (2) 5,569 5,689 UL and Other (3) 15,236 15,752 Other Operations (4) 9,280 9,753 Other (5) 3,289 3,343 Total future contract benefits $ 38,889 $ 40,174 (1) See liability for future policy benefits (“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 ($5.4 billion and $5.6 billion as of June 30, 2024, and December 31, 2023, respectively) and Swiss Re ($2.0 billion and $2.1 billion as of June 30, 2024, and December 31, 2023, 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 Six As of or For the Six Payout Annuities Traditional Life Payout Annuities Traditional Life Present Value of Expected Net Premiums Balance as of beginning-of-year $ – $ 6,084 $ – $ 5,896 Less: Effect of cumulative changes in discount rate assumptions – (152) – (584) Beginning balance at original discount rate – 6,236 – 6,480 Effect of actual variances from expected experience – (10) – (257) Adjusted balance as of beginning-of-year – 6,226 – 6,223 Issuances – 206 – 330 Interest accrual – 122 – 116 Net premiums collected – (396) – (395) Flooring impact of LFPB – 2 – 3 Ending balance at original discount rate – 6,160 – 6,277 Effect of cumulative changes in discount rate assumptions – (322) – (329) Balance as of end-of-period $ – $ 5,838 $ – $ 5,948 Present Value of Expected LFPB Balance as of beginning-of-year $ 2,084 $ 9,637 $ 2,003 $ 9,086 Less: Effect of cumulative changes in discount rate assumptions (187) (202) (263) (793) Beginning balance at original discount rate (1) 2,271 9,839 2,266 9,879 Effect of actual variances from expected experience 3 (15) (2) (280) Adjusted balance as of beginning-of-year 2,274 9,824 2,264 9,599 Issuances 39 206 69 330 Interest accrual 43 190 43 179 Benefit payments (98) (357) (93) (309) Ending balance at original discount rate (1) 2,258 9,863 2,283 9,799 Effect of cumulative changes in discount rate assumptions (257) (511) (236) (479) Balance as of end-of-period $ 2,001 $ 9,352 $ 2,047 $ 9,320 Net balance as of end-of-period $ 2,001 $ 3,514 $ 2,047 $ 3,372 Less: reinsurance recoverables (2) 1,527 232 10 263 Net balance as of end-of-period, net of reinsurance $ 474 $ 3,282 $ 2,037 $ 3,109 Weighted-average duration of future policyholder benefit liability (years) 9 10 9 10 (1) Includes deferred profit liability within Payout Annuities of $61 million and $53 million as of June 30, 2024 and 2023, respectively. (2) Increase in Payout Annuities reinsurance recoverables was driven by the fourth quarter 2023 reinsurance transaction. See Note 7 For the six months ended June 30, 2024 and 2023, Traditional Life and Payout Annuities 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 June 30, 2024 As of June 30, 2023 Undiscounted Discounted Undiscounted Discounted Payout Annuities Expected future gross premiums $ – $ – $ – $ – Expected future benefit payments 3,435 2,001 3,500 2,047 Traditional Life Expected future gross premiums 13,265 8,980 13,309 9,050 Expected future benefit payments 14,115 9,352 14,013 9,320 The following table summarizes the gross premiums and interest accretion (in millions) recognized in insurance premiums and benefits, respectively, on the Consolidated Statements of Comprehensive Income (Loss): For the Three For the Six 2024 2023 2024 2023 Payout Annuities Gross premiums $ 24 $ 44 $ 45 $ 71 Interest accretion 22 21 43 43 Traditional Life Gross premiums 301 297 599 592 Interest accretion 34 32 67 63 The following table summarizes the weighted-average interest rates: For the Six Months Ended 2024 2023 Payout Annuities Interest accretion rate 4.0 % 3.9 % Current discount rate 5.4 % 5.2 % Traditional Life Interest accretion rate 4.9 % 5.0 % Current discount rate 5.2 % 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 Six 2024 2023 Balance as of beginning-of-year $ 5,689 $ 5,462 Less: Effect of cumulative changes in discount rate assumptions (490) (597) Beginning balance at original discount rate 6,179 6,059 Effect of actual variances from expected experience (191) (220) Adjusted beginning-of-year balance 5,988 5,839 New incidence 838 882 Interest 93 83 Benefit payments (757) (734) Ending balance at original discount rate 6,162 6,070 Effect of cumulative changes in discount rate assumptions (593) (577) Balance as of end-of-period 5,569 5,493 Less: reinsurance recoverables (1) 4,284 121 Balance as of end-of-period, net of reinsurance $ 1,285 $ 5,372 Weighted-average duration of liability for future claims (years) 5 4 (1) Increase in reinsurance recoverables was driven by the second quarter 2024 reinsurance transaction. See Note 7 For the six months ended June 30, 2024, we experienced more favorable claim terminations and reported incidence than assumed. For the six months ended June 30, 2023, we experienced more favorable reported incidence and claim terminations than assumed. The following table summarizes the discounted and undiscounted expected future benefit payments (in millions): As of June 30, 2024 As of June 30, 2023 Undiscounted Discounted Undiscounted Discounted Group Protection Expected future benefit payments $ 7,290 $ 5,569 $ 7,111 $ 5,493 The following table summarizes the gross premiums and interest accretion (in millions) recognized in insurance premiums and benefits, respectively, on the Consolidated Statements of Comprehensive Income (Loss): For the Three For the Six 2024 2023 2024 2023 Group Protection Gross premiums $ 893 $ 885 $ 1,789 $ 1,770 Interest accretion 45 41 93 83 The following table summarizes the weighted-average interest rates: For the Six Months Ended June 30, 2024 2023 Group Protection Interest accretion rate 3.2 % 2.9 % Current discount rate 5.2 % 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 Six 2024 2023 Balance as of beginning-of-year $ 15,752 $ 14,777 Less: Effect of cumulative changes in shadow balance in AOCI (853) (905) Balance as of beginning-of-year, excluding shadow balance in AOCI 16,605 15,682 Effect of actual variances from expected experience 136 6 Adjusted beginning-of-year balance 16,741 15,688 Interest accrual 410 377 Net assessments collected 638 190 Benefit payments (521) (360) Balance as of end-of-period, excluding shadow balance in AOCI 17,268 15,895 Effect of cumulative changes in shadow balance in AOCI (2,032) (1,769) Balance as of end-of-period 15,236 14,126 Less: reinsurance recoverables (1) 10,040 2,041 Balance as of end-of-period, net of reinsurance $ 5,196 $ 12,085 Weighted-average duration of additional liabilities for other insurance benefits (years) 16 18 (1) Increase in reinsurance recoverables was driven by the fourth quarter 2023 reinsurance transaction. See Note 7 For the six months ended June 30, 2024, we had unfavorable actual mortality experience compared to expected. For the six months ended June 30, 2023, we did not have any significantly different actual experience compared to expected. The following table summarizes the gross assessments and interest accretion (in millions) recognized in insurance premiums and benefits, respectively, on the Consolidated Statements of Comprehensive Income (Loss): For the Three For the Six 2024 2023 2024 2023 UL and Other Gross assessments $ 773 $ 542 $ 1,539 $ 1,457 Interest accretion 206 190 410 377 The following table summarizes the weighted-average interest rates: For the Six 2024 2023 UL and Other Interest accretion rate 5.4 % 4.9 % |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2024 | |
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 June 30, 2024 As of December 31, 2023 Carrying Fair Carrying Fair Assets Fixed maturity AFS securities $ 81,037 $ 81,037 $ 82,300 $ 82,300 Trading securities 2,181 2,181 2,321 2,321 Equity securities 295 295 306 306 Mortgage loans on real estate 20,008 17,763 18,873 17,330 Derivative investments 8,472 8,472 6,305 6,305 Other investments 5,385 5,385 4,757 4,757 Cash and invested cash 4,662 4,662 3,193 3,193 MRB assets 4,754 4,754 3,894 3,894 Other assets: Ceded MRBs 39 39 274 274 Indexed annuity ceded embedded derivatives 1,756 1,756 940 940 LPR ceded derivative 202 202 206 206 Separate account assets 165,199 165,199 158,257 158,257 Liabilities Policyholder account balances: Account balances of certain investment contracts (45,072) (34,223) (44,615) (34,020) RILA, fixed annuity and IUL contracts (11,417) (11,417) (9,077) (9,077) Funds withheld reinsurance liabilities – reinsurance-related embedded derivatives 585 585 493 493 MRB liabilities (1,275) (1,275) (1,716) (1,716) Short-term debt (656) (656) (840) (841) Long-term debt (2,177) (2,125) (2,195) (2,125) Other liabilities: Ceded MRBs (2,189) (2,189) (1,149) (1,149) Derivative liabilities (200) (200) (356) (356) Remaining guaranteed interest and similar contracts (367) (367) (411) (411) 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, LTV, 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 June 30, 2024, and December 31, 2023, the remaining guaranteed interest and similar contracts carrying value approximated fair value. The inputs used to measure the fair value of these other liabilities are classified as Level 3 within the fair value hierarchy. Short-Term and Long-Term Debt The fair value of short-term and long-term debt is based on quoted market prices. The inputs used to measure the fair value of our short-term and long-term debt are classified as Level 2 within the fair value hierarchy. Fair Value Option Mortgage loans on real estate, net of allowance for credit losses, as reported on the Consolidated Balance Sheets, includes mortgage loans on real estate for which the fair value option was elected. The fair value option allows us to elect fair value as an alternative measurement for mortgage loans not otherwise reported at fair value. We have made these elections for certain mortgage loans associated with modified coinsurance agreements to help mitigate the inconsistency in earnings that would otherwise result from the use of embedded derivatives included with these loans. Changes in fair value are reflected in realized gain (loss) on the Consolidated Statement of Comprehensive Income (Loss). Changes in fair value due to instrument-specific credit risk are estimated using changes in credit spreads and quality ratings for the period reported. Mortgage loans on real estate for which the fair value option was elected are valued using third-party pricing services. We have procedures in place to review the valuations each quarter to ensure they are reasonable, including utilizing a separate third party to reperform the valuation for a selection of mortgage loans on an annual basis. Due to lack of observable inputs, mortgage loans electing the fair value option are classified as Level 3 within the fair value hierarchy. The fair value and aggregate contractual principal for mortgage loans on real estate where the fair value option was elected (in millions) were as follows: As of As of 2024 2023 Fair value $ 258 $ 288 Aggregate contractual principal 292 326 As of June 30, 2024, and December 31, 2023, 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 June 30, 2024, or December 31, 2023. The following summarizes our financial instruments carried at fair value (in millions) on a recurring basis by the fair value hierarchy levels: As of June 30, 2024 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 $ – $ 55,206 $ 6,817 $ 62,023 U.S. government bonds 367 21 – 388 State and municipal bonds – 2,240 – 2,240 Foreign government bonds – 256 – 256 RMBS – 1,536 18 1,554 CMBS – 1,380 22 1,402 ABS – 10,950 1,997 12,947 Hybrid and redeemable preferred securities 48 129 50 227 Trading securities – 1,908 273 2,181 Equity securities 2 255 38 295 Mortgage loans on real estate – – 258 258 Derivative investments (1) – 14,739 787 15,526 Other investments – short-term investments – 230 – 230 Cash and invested cash – 4,662 – 4,662 MRB assets – – 4,754 4,754 Other assets: Ceded MRBs – – 39 39 Indexed annuity ceded embedded derivatives – – 1,756 1,756 LPR ceded derivative – – 202 202 Separate account assets 397 164,802 – 165,199 Total assets $ 814 $ 258,314 $ 17,011 $ 276,139 Liabilities Policyholder account balances – RILA, fixed annuity and IUL contracts $ – $ – $ (11,417) $ (11,417) Funds withheld reinsurance liabilities – reinsurance-related embedded derivatives – 638 (53) 585 MRB liabilities – – (1,275) (1,275) Other liabilities: Ceded MRBs – – (2,189) (2,189) Derivative liabilities (1) – (6,459) (795) (7,254) Total liabilities $ – $ (5,821) $ (15,729) $ (21,550) 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) (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 8 For the Three Months Ended June 30, 2024 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 Assets Investments: (2) Fixed maturity AFS securities: Corporate bonds $ 6,747 $ (1) $ (8) $ 171 $ (92) $ 6,817 RMBS 12 – – 6 – 18 CMBS 8 – – 14 – 22 ABS 1,692 – 7 365 (67) 1,997 Hybrid and redeemable preferred securities 51 – (1) – – 50 Trading securities 271 – – 2 – 273 Equity securities 39 – – (1) – 38 Mortgage loans on real estate 289 4 – (35) – 258 Derivative investments 1 (6) – (3) – (8) Other assets: Ceded MRBs (3) 59 (20) – – – 39 Indexed annuity ceded embedded derivatives (4) 973 11 – 772 – 1,756 LPR ceded derivative (5) 201 1 – – – 202 Liabilities Policyholder account balances – RILA, fixed annuity and IUL contracts (4) (10,896) (339) – (182) – (11,417) Funds withheld reinsurance liabilities – reinsurance-related embedded derivatives (4) (25) (28) – – – (53) Other liabilities – ceded MRBs (3) (2,261) 72 – – – (2,189) Total, net $ (2,839) $ (306) $ (2) $ 1,109 $ (159) $ (2,197) For the Three Months Ended June 30, 2023 Gains Issuances, Transfers Items (Losses) Sales, Into or Included in Maturities, Out Beginning in OCI Settlements, of Ending Fair Net and Calls, Level 3, Fair Value Income Other (1) Net Net Value Assets Investments: (2) Fixed maturity AFS securities: Corporate bonds $ 6,219 $ (12) $ 3 $ (57) $ 24 $ 6,177 State and municipal bonds 36 (2) 3 (1) – 36 RMBS 1 – – 5 – 6 CMBS – – – (4) 4 – ABS 1,100 – (6) 152 (38) 1,208 Hybrid and redeemable preferred securities 59 – (3) – 4 60 Trading securities 458 (2) – (105) – 351 Equity securities 137 (13) – 1 – 125 Mortgage loans on real estate 490 (4) 2 (84) – 404 Derivative investments 1 (1) – – 31 31 Other assets: Ceded MRBs (3) 699 (298) – – – 401 Indexed annuity ceded embedded derivatives (4) 565 4 – 34 – 603 LPR ceded derivative (5) 199 3 – – – 202 Liabilities Policyholder account balances – RILA, fixed annuity and IUL contracts (4) (5,796) (1,558) – (156) – (7,510) Other liabilities – ceded MRBs (3) (909) (531) – – – (1,440) Total, net $ 3,259 $ (2,414) $ (1) $ (215) $ 25 $ 654 For the Six Months Ended June 30, 2024 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 Assets Investments: (2) Fixed maturity AFS securities: Corporate bonds $ 6,469 $ – $ (16) $ 481 $ (117) $ 6,817 State and municipal bonds 5 – – – (5) – RMBS 13 – (1) 6 – 18 CMBS 8 – – 14 – 22 ABS 1,484 1 5 566 (59) 1,997 Hybrid and redeemable preferred securities 48 – 2 – – 50 Trading securities 284 – – (11) – 273 Equity securities 42 (3) – (1) – 38 Mortgage loans on real estate 288 4 1 (35) – 258 Derivative investments 36 5 – 2 (51) (8) Other assets: Ceded MRBs (3) 274 (235) – – – 39 Indexed annuity ceded embedded derivatives (4) 940 44 – 772 – 1,756 LPR ceded derivative (5) 206 (4) – – – 202 Liabilities Policyholder account balances - RILA, fixed annuity and IUL contracts (4) (9,077) (2,015) – (325) – (11,417) Funds withheld reinsurance liabilities – reinsurance-related embedded derivatives (4) – (53) – – – (53) Other liabilities - ceded MRBs (3) (1,149) (1,040) – – – (2,189) Total, net $ (129) $ (3,296) $ (9) $ 1,469 $ (232) $ (2,197) For the Six Months Ended June 30, 2023 Gains Issuances, Transfers Items (Losses) Sales, Into or Included in Maturities, Out Beginning in OCI Settlements, of Ending Fair Net and Calls, Level 3, Fair Value Income Other (1) Net Net Value Assets Investments: (2) Fixed maturity AFS securities: Corporate bonds $ 5,186 $ (12) $ 15 $ 949 $ 39 $ 6,177 State and municipal bonds 35 (2) 4 (1) – 36 RMBS 1 – – 5 – 6 CMBS – – – (4) 4 – ABS 1,117 – 2 320 (231) 1,208 Hybrid and redeemable preferred securities 49 – (3) (2) 16 60 Trading securities 581 2 – (232) – 351 Equity securities 153 (29) – 1 – 125 Mortgage loans on real estate 487 (2) 5 (86) – 404 Derivative investments 2 (2) – – 31 31 Other assets: Ceded MRBs (3) 540 (139) – – – 401 Indexed annuity ceded embedded derivatives (4) 525 11 – 67 – 603 LPR ceded derivative (5) 212 (10) – – – 202 Liabilities Policyholder account balances - RILA, fixed annuity and IUL contracts (4) (4,783) (2,277) – (450) – (7,510) Other liabilities – ceded MRBs (3) (246) (1,194) – – – (1,440) Total, net $ 3,859 $ (3,654) $ 23 $ 567 $ (141) $ 654 (1) The changes in fair value of the interest rate swaps are offset by an adjustment to derivative investments Note 5 (2) Amortization and accretion of premiums and discounts are included in net investment income on the Consolidated Statements of Comprehensive Income (Loss). Gains (losses) from sales, maturities, settlements and calls and credit loss expense are included in realized gain (loss) on the Consolidated Statements of Comprehensive Income (Loss). (3) Gains (losses) from the changes in fair value are included in market risk benefit gain (loss) on the Consolidated Statements of Comprehensive Income (Loss). (4) Gains (losses) from the changes in fair value are included in realized gain (loss) on the Consolidated Statements of Comprehensive Income (Loss). (5) Gains (losses) from the changes in fair value are included in benefits on the Consolidated Statements of Comprehensive Income (Loss). The following provides the components of the items included in issuances, sales, maturities, settlements and calls, net, (in millions) as reported above: For the Three Months Ended June 30, 2024 Issuances Sales Maturities Settlements Calls Total Investments: Fixed maturity AFS securities: Corporate bonds $ 375 $ (79) $ – $ (125) $ – $ 171 RMBS 6 – – – – 6 CMBS 14 – – – – 14 ABS 462 (30) – (56) (11) 365 Trading securities 4 – – (2) – 2 Equity securities – (1) – – – (1) Mortgage loans on real estate – (30) – (5) – (35) Derivative investments (3) – – – – (3) Other assets – indexed annuity ceded embedded derivatives 26 – – 746 – 772 Policyholder account balances – RILA, fixed annuity and IUL contracts (285) – – 103 – (182) Total, net $ 599 $ (140) $ – $ 661 $ (11) $ 1,109 For the Three Months Ended June 30, 2023 Issuances Sales Maturities Settlements Calls Total Investments: Fixed maturity AFS securities: Corporate bonds $ 253 $ (62) $ (26) $ (211) $ (11) $ (57) RMBS 5 – – – – 5 CMBS – – – (4) – (4) ABS 216 – – (64) – 152 State and municipal bonds – (1) – – – (1) Trading securities – (102) – (3) – (105) Equity securities 1 – – – – 1 Mortgage loans on real estate 3 – – (87) – (84) Other assets – indexed annuity ceded embedded derivatives 34 – – – – 34 Policyholder account balances – RILA, fixed annuity and IUL contracts (316) – – 160 – (156) Total, net $ 196 $ (165) $ (26) $ (209) $ (11) $ (215) For the Six Months Ended June 30, 2024 Issuances Sales Maturities Settlements Calls Total Investments: Fixed maturity AFS securities: Corporate bonds $ 911 $ (206) $ (2) $ (221) $ (1) $ 481 RMBS 6 – – – – 6 CMBS 14 – – – – 14 ABS 726 (30) – (119) (11) 566 Trading securities 4 (2) – (13) – (11) Equity securities – (1) – – – (1) Mortgage loans on real estate 1 (31) – (5) – (35) Derivative investments 4 – (2) – – 2 Other assets – indexed annuity ceded embedded derivatives 52 – – 720 – 772 Policyholder account balances – RILA, fixed annuity and IUL contracts (533) – – 208 – (325) Total, net $ 1,185 $ (270) $ (4) $ 570 $ (12) $ 1,469 For the Six Months Ended June 30, 2023 Issuances Sales Maturities Settlements Calls Total Investments: Fixed maturity AFS securities: Corporate bonds $ 1,390 $ (117) $ (34) $ (279) $ (11) $ 949 RMBS 5 – – – – 5 CMBS – – – (4) – (4) ABS 457 (2) – (135) – 320 State and municipal bonds – (1) – – – (1) Hybrid and redeemable preferred securities – – – – (2) (2) Trading securities – (155) – (77) – (232) Equity securities 1 – – – – 1 Mortgage loans on real estate 4 – – (90) – (86) Other assets – indexed annuity ceded embedded derivatives 84 – – (17) – 67 Policyholder account balances – RILA, fixed annuity and IUL contracts (615) – – 165 – (450) Total, net $ 1,326 $ (275) $ (34) $ (437) $ (13) $ 567 The following summarizes changes in unrealized gains (losses) included in net income related to financial instruments carried at fair value classified within Level 3 that we still held (in millions): For the Three For the Six 2024 2023 2024 2023 Trading securities (1) $ (1) $ (5) $ (1) $ 1 Equity securities (1) – (13) (2) (29) Mortgage loans on real estate (1) (3) (5) (4) (3) Derivative investments (1) (8) – 8 (2) MRBs (2) 160 1,222 845 133 Other assets – LPR ceded derivative (3) 1 3 (4) (10) Funds withheld reinsurance liabilities – reinsurance-related embedded derivatives (1) (28) – (53) – Embedded derivatives – indexed annuity and IUL contracts (1) 228 (55) 469 (208) Total, net $ 349 $ 1,147 $ 1,258 $ (118) (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 Three For the Six 2024 2023 2024 2023 Fixed maturity AFS securities: Corporate bonds $ (27) $ – $ (37) $ 12 State and municipal bonds – 3 – 3 ABS (20) (7) (20) 1 Hybrid and redeemable preferred securities (1) (2) 1 (2) Mortgage loans on real estate – 2 1 4 Total, net $ (48) $ (4) $ (55) $ 18 The following provides the components of the transfers into and out of Level 3 (in millions) as reported above: For the Three Months Ended June 30, 2024 For the Three Months Ended June 30, 2023 Transfers Transfers Transfers Transfers Into Out of Into Out of Level 3 Level 3 Total Level 3 Level 3 Total Investments: Fixed maturity AFS securities: Corporate bonds $ – $ (92) $ (92) $ 100 $ (76) $ 24 CMBS – – – 4 – 4 ABS 18 (85) (67) 2 (40) (38) Hybrid and redeemable preferred securities – – – 4 – 4 Derivative investments – – – 31 – 31 Total, net $ 18 $ (177) $ (159) $ 141 $ (116) $ 25 For the Six Months Ended June 30, 2024 For the Six Months Ended June 30, 2023 Transfers Transfers Transfers Transfers Into Out of Into Out of Level 3 Level 3 Total Level 3 Level 3 Total Investments: Fixed maturity AFS securities: Corporate bonds $ 19 $ (136) $ (117) $ 158 $ (119) $ 39 State and municipal bonds – (5) (5) – – – CMBS – – – 4 – 4 ABS 49 (108) (59) 2 (233) (231) Hybrid and redeemable preferred securities – – – 16 – 16 Derivative investments – (51) (51) 31 – 31 Total, net $ 68 $ (300) $ (232) $ 211 $ (352) $ (141) Transfers into and out of Level 3 are generally the result of observable market information on financial instruments no longer being available or becoming available to our pricing vendors. For the three and six months ended June 30, 2024 and 2023, transfers in and out of Level 3 were attributable primarily to the financial instruments’ observable market information no longer being available or becoming available. The following summarizes the fair value (in millions), valuation techniques and significant unobservable inputs of the Level 3 fair value measurements as of June 30, 2024: Weighted Fair Valuation Significant Assumption or Average Value Technique Unobservable Inputs Input Ranges Range (1) Assets Investments: Fixed maturity AFS securities: Corporate bonds $ 173 Discounted cash flow Liquidity/duration adjustment (2) 0% – 3.6 % 1.9 % CMBS 8 Discounted cash flow Liquidity/duration adjustment (2) 1.9 % – 1.9 % 1.9 % ABS 11 Discounted cash flow Liquidity/duration adjustment (2) 1.4 % – 1.4 % 1.4 % Hybrid and redeemable preferred securities 7 Discounted cash flow Liquidity/duration adjustment (2) 1.2 % – 1.5 % 1.3 % Equity securities 5 Discounted cash flow Liquidity/duration adjustment (2) 4.5 % – 4.5 % 4.5 % MRB assets 4,754 Other assets: Ceded MRBs 39 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) 0.21 % – 1.92 % 1.55 % Mortality (7) (9) (10) Volatility (8) 1 % – 29 % 14.12 % Indexed annuity ceded embedded derivatives 1,756 Discounted cash flow Lapse (3) 0% – 9 % (10) Mortality (7) (9) (10) LPR ceded derivative 202 Discounted cash flow Lapse (3) 0.10 % 2.00 % (10) Non-performance risk (6) 0.21 % 1.92 % 1.36 % Mortality (7) (9) (10) Liabilities Policyholder account balances – indexed annuity contracts embedded derivatives $ (11,325) Discounted cash flow Lapse (3) 0% – 9 % (10) Mortality (7) (9) (10) MRB liabilities (1,275) Other liabilities – ceded MRBs (2,189) 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) 0.21 % – 1.92 % 1.55 % Mortality (7) (9) (10) Volatility (8) 1 % – 29 % 14.12 % 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 Value Technique Unobservable Inputs Input Ranges Range (1) Assets Investments: Fixed maturity AFS 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 % Indexed annuity ceded embedded derivatives 940 Discounted cash flow Lapse (3) 0% – 9 % (10) Mortality (7) (9) (10) LPR ceded derivative 206 Discounted cash flow Lapse (3) 0.1 % 2.00 % (10) Non-performance risk (6) 1 % 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 % (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. The embedded derivative liability associated with Fortitude Re was excluded from the above table. As discussed in Note 7 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 guaranteed death benefit (“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. |
Contingencies and Commitments
Contingencies and Commitments | 6 Months Ended |
Jun. 30, 2024 | |
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, tax authorities and other regulatory bodies regularly make inquiries and conduct examinations, investigations or audits concerning our compliance with, among other things, insurance laws, securities laws, tax laws, laws governing the activities of broker-dealers, registered investment advisers and unclaimed property laws. Tax-related matters can include disputes with taxing authorities, ongoing audits, evaluation of filing positions and any potential assessments related thereto. 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 June 30, 2024. 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 June 30, 2024, 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 $150 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, and a hearing on the motion was held on July 30, 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 ). 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, and a hearing on the motion was held on July 30, 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 . 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, and a hearing on the motion was held on July 30, 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 29, 2024, the court issued its summary judgment decision, granting LLANY’s motion in part and denying it in part, and entering summary judgment against twenty-two policyholders that the court determined were not economically harmed. On June 25, 2024, the court granted LLANY’s April 12, 2024, motion to stay proceedings in this matter pending the completion of the 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. On May 7, 2024, the U.S. District Court for the Eastern District of Pennsylvania consolidated for all purposes four previously disclosed civil actions: EFG Bank AG, Cayman Branch, et al. v. The Lincoln National Life Insurance Company , No. 17-cv-02592-GJP (E.D. Pa.) filed on February 1, 2017; LSH CO, et al. v. Lincoln National Corp., et al. , No. 18-cv-05529-GJP (E.D. Pa.), filed on December 21, 2018; Brighton Trustees, LLC, et al. v. The Lincoln National Life Insurance Company , No. 2:23-cv-2251-GJP (E.D. Pa.), filed on April 20, 2023 (and transferred to the U.S. District Court for the Eastern District of Pennsylvania on June 12, 2023); and Ryan K. Crayne, on behalf of and as trustee for Carlton Peak Trust v. The Lincoln National Life Insurance Company , No. 2:24-cv-00053-GJP, filed on November 17, 2023 (and transferred to the U.S. District Court for the Eastern District of Pennsylvania on January 4, 2024), and one additional pending civil action, Conestoga Trust, et al. v. Lincoln National Corp., et al., No. 18-cv-02379-GJP (E.D. Pa.), filed on June 6, 2018. In each case other than Crayne , plaintiffs purport to own universal life insurance policies or interests in universal life insurance policies originally issued by Jefferson-Pilot (now LNL). In Crayne , plaintiffs purport to own litigation claims concerning universal life policies originally issued by Jefferson-Pilot (now LNL). Among other things, plaintiffs in each case allege that LNL (or, in LSH Co. and Conestoga , LNL and LNC) breached the terms of policyholders’ contracts when it increased non-guaranteed cost of insurance rates beginning in 2016 (or, in Brighton Trustees and LSH Co. , in 2016 and 2017). We are vigorously defending these consolidated matters. 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. Tax Assessment Proceeding Lincoln National Life Insurance Company v. Township of Radnor , pending in the Court of Common Pleas of Delaware County, Pennsylvania Civil Division, No. 2022-001894, is a de novo appeal filed by LNL on March 21, 2022, regarding a September 30, 2021, Notice of Tax Assessment issued by the Township of Radnor to LNL for additional business privilege tax (“BPT”) for the years 2014-2019/2020 estimate. The assessment was based on an audit undertaken by a third-party auditor and consultant to the Township of Radnor, following a periodic business review of LNL undertaken by the same individual in 2018. The assessment is comprised of taxes, interest and penalties for the period in question. LNL filed a motion for summary judgment, that was denied by the court and trial has been scheduled for October 2024. We are vigorously defending this matter. |
Shares and Stockholder's Equity
Shares and Stockholder's Equity | 6 Months Ended |
Jun. 30, 2024 | |
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 Six 2024 2023 Unrealized Gain (Loss) on Fixed Maturity AFS Securities and Certain Other Investments Balance as of beginning-of-year $ (3,532) $ (8,526) Unrealized holding gains (losses) arising during the period (1,489) 1,199 Change in foreign currency exchange rate adjustment (117) 119 Change in future contract benefits and policyholder account balances, net of reinsurance 2,215 856 Income tax benefit (expense) (131) (478) Less: Reclassification adjustment for gains (losses) included in net income (loss) (106) (2,722) Income tax benefit (expense) 22 572 Balance as of end-of-period $ (2,970) $ (4,680) Unrealized Gain (Loss) on Derivative Instruments Balance as of beginning-of-year $ 249 $ 301 Unrealized holding gains (losses) arising during the period 46 204 Change in foreign currency exchange rate adjustment 117 (110) Income tax benefit (expense) (35) (20) Less: Reclassification adjustment for gains (losses) included in net income (loss) 27 30 Income tax benefit (expense) (6) (6) Balance as of end-of-period $ 356 $ 351 Market Risk Benefit Non-Performance Risk Gain (Loss) Balance as of beginning-of-year $ 1,069 $ 1,739 Adjustment arising during the period (841) 129 Income tax benefit (expense) 180 (27) Balance as of end-of-period $ 408 $ 1,841 Policyholder Liability Discount Rate Remeasurement Gain (Loss) Balance as of beginning-of-year $ 645 $ 790 Adjustment arising during the period 241 (114) Income tax benefit (expense) (51) 26 Balance as of end-of-period $ 835 $ 702 Foreign Currency Translation Adjustment Balance as of beginning-of-year $ – $ – Foreign currency translation adjustment arising during the period – (1) Balance as of end-of-period $ – $ (1) Funded Status of Employee Benefit Plans Balance as of beginning-of-year $ (16) $ (17) Balance as of end-of-period $ (16) $ (17) The following summarizes the reclassifications out of AOCI (in millions) and the associated line item on the Consolidated Statements of Comprehensive Income (Loss): For the Six 2024 2023 Unrealized Gain (Loss) on Fixed Maturity AFS Securities and Certain Other Investments Reclassification $ (111) $ (3,140) Realized gain (loss) Associated change in future contract benefits 5 418 Benefits Reclassification before income tax benefit (expense) (106) (2,722) Income (loss) before taxes Income tax benefit (expense) 22 572 Federal income tax expense (benefit) Reclassification, net of income tax $ (84) $ (2,150) Net income (loss) Unrealized Gain (Loss) on Derivative Instruments Interest rate contracts $ (1) $ – Interest and debt expense Foreign currency contracts 29 27 Net investment income Foreign currency contracts (1) 3 Realized gain (loss) Reclassifications before income tax benefit (expense) 27 30 Income (loss) before taxes Income tax benefit (expense) (6) (6) Federal income tax expense (benefit) Reclassifications, net of income tax $ 21 $ 24 Net income (loss) |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2024 | |
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 CODMs view and manage the business. A discussion of these segments and Other Operations is found in Note 20 to the Consolidated Financial Statements in our 2023 Form 10-K. Segment operating revenues and income (loss) from operations are internal measures used by our management and Board of Directors to evaluate and assess the results of our segments. Income (loss) from operations is GAAP net income excluding the after-tax effects of the following items, as applicable: • 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; • Amortization of deferred gains arising from reserve changes on business sold through reinsurance; and • Gains (losses) on other non-financial assets. 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 consolidated financial statements and federal income tax returns. The tables below reconcile our segment measures of performance to the GAAP measures presented on the Consolidated Statements of Comprehensive Income (Loss) (in millions): For the Three For the Six 2024 2023 2024 2023 Revenues Operating revenues: Annuities $ 1,141 $ 1,097 $ 2,319 $ 2,140 Life Insurance 1,318 1,656 2,498 3,294 Group Protection (1) (3,051) 1,400 (1,626) 2,787 Retirement Plan Services 323 328 640 650 Other Operations 34 36 59 75 Revenue adjustments from annuity and life insurance product features 224 (23) 394 (114) Credit loss-related adjustments (33) (5) (33) (26) Investment gains (losses) (2) (204) (3,081) (260) (3,137) Changes in the fair value of reinsurance-related embedded derivatives, trading securities and certain mortgage loans 43 71 90 60 GLB rider fees ceded to LNBAR (232) (232) (462) (465) Gains (losses) on other non-financial assets – sale of subsidiaries/businesses (3) 481 – 481 – Total revenues $ 44 $ 1,247 $ 4,100 $ 5,264 For the Three For the Six 2024 2023 2024 2023 Net Income (Loss) Income (loss) from operations: Annuities $ 252 $ 218 $ 475 $ 435 Life Insurance 79 32 28 – Group Protection 129 109 209 179 Retirement Plan Services 37 43 69 81 Other Operations (59) (75) (167) (127) Net annuity product features, after-tax 324 1,084 1,108 262 Net life insurance product features, after-tax (4) (12) 207 (114) 112 Credit loss-related adjustments, after-tax (27) (4) (28) (21) Investment gains (losses), after-tax (2) (160) (2,435) (206) (2,478) Changes in the fair value of reinsurance-related embedded derivatives, trading securities and certain mortgage loans, after-tax 34 56 71 47 GLB rider fees ceded to LNBAR, after-tax (182) (184) (364) (367) Transaction and integration costs related to mergers, acquisitions and divestitures, after-tax (5) (12) (7) (21) (7) Gains (losses) on other non-financial assets – sale of subsidiaries/businesses, after-tax (3) 358 – 358 – Net income (loss) $ 761 $ (956) $ 1,418 $ (1,884) (1) The three and six months ended June 30, 2024, reflect day one impacts pertaining to the second quarter 2024 reinsurance transaction. For more information, see Note 7 (2) The three and six months ended June 30, 2023, include 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 fourth quarter 2023 reinsurance transaction. See Notes 3 7 (3) For information on the sale of the wealth management business, see Note 1 (4) The three and six months ended June 30, 2023, include $330 million after-tax related to the fourth quarter 2023 reinsurance transaction. For more information, see Note 7 (5) Includes costs pertaining to the sale of the wealth management business and the fourth quarter 2023 reinsurance transaction. For more information, see Notes 1 7 Other segment information (in millions) was as follows: As of As of 2024 2023 Assets Annuities $ 204,946 $ 186,716 Life Insurance 112,686 107,529 Group Protection 13,943 9,741 Retirement Plan Services 47,830 46,969 Other Operations 19,529 23,021 Total assets $ 398,934 $ 373,976 |
Realized Gain (Loss)
Realized Gain (Loss) | 6 Months Ended |
Jun. 30, 2024 | |
Realized Gain (Loss) [Abstract] | |
Realized Gain (Loss) | Realized Gain (Loss) Realized gain (loss) on the Consolidated Statements of Comprehensive Income (Loss) includes realized gains and losses from the sale of investments, write-downs for impairments of investments and changes in the allowance for credit losses for financial assets, changes in fair value for mortgage loans on real estate accounted for under the fair value option, changes in fair value of equity securities, VUL derivative and embedded derivative gains and losses, gains and losses on the sale of subsidiaries and businesses and net gains and losses on reinsurance-related embedded derivatives and trading securities. Realized gains and losses on the sale of investments are determined using the specific identification method. Realized gain (loss) is also net of allocations of investment gains and losses to certain policyholders, certain funds withheld on reinsurance arrangements and certain modified coinsurance arrangements for which we have a contractual obligation. Details underlying realized gain (loss) (in millions) were as follows: For the Three For the Six 2024 2023 2024 2023 Fixed maturity AFS securities: Gross gains $ 9 $ 8 $ 16 $ 33 Gross losses (120) (48) (178) (111) Credit loss benefit (expense) (1) (23) 1 (25) (15) Intent to sell impairments (2) – (3,062) – (3,062) Realized gain (loss) on equity securities (3) 1 (13) 12 (27) Credit loss benefit (expense) on mortgage loans on real estate (17) (3) (17) (7) Credit loss benefit (expense) on reinsurance-related assets 7 (3) 9 (4) Realized gain (loss) on the mark-to-market on certain instruments (4)(5) (68) (80) (201) (207) Indexed product derivative results (6) 77 (49) 222 (203) GLB rider fees ceded to LNBAR and attributed fees (31) (28) (61) (57) Realized gain (loss) on subsidiaries/businesses (7) 481 – 481 – Other realized gain (loss) (33) 25 (32) 14 Total realized gain (loss) $ 283 $ (3,252) $ 226 $ (3,646) (1) Includes changes in the allowance for credit losses as well as direct write-downs to amortized cost as a result of negative credit events. (2) The three and six months ended June 30, 2023, include 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 fourth quarter 2023 reinsurance transaction. See Notes 3 7 (3) Includes mark-to-market adjustments on equity securities still held of $4 million and $(13) million for the three months ended June 30, 2024 and 2023, respectively, and $16 million and $(27) million for the six months ended June 30, 2024 and 2023, respectively. (4) Represents changes in the fair values of derivatives we hold as part of VUL hedging, reinsurance-related embedded derivatives and trading securities. (5) Includes gains and losses from fair value changes on mortgage loans on real estate accounted for under the fair value option of less than $3 million and $(3) million for the three months ended June 30, 2024 and 2023, respectively, and $3 million and $(1) million for the six months ended June 30, 2024 and 2023, respectively. (6) 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. (7) For information on the sale of the wealth management business, see Note 1 |
Federal Income Taxes
Federal Income Taxes | 6 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Federal Income Taxes | Federal Income Taxes The effective tax rate is the ratio of tax expense (benefit) over pre-tax income (loss). The effective tax rate was 18% and 19% for the three and six months ended June 30, 2024, respectively, compared to 24% for the corresponding periods in 2023. The effective tax rate on pre-tax income is typically lower than the prevailing corporate federal income tax rate of 21% due to benefits from preferential tax items including the separate account dividends-received deduction and tax credits. For the three and six months ended June 30, 2024, the effective tax rate differed from the prevailing corporate federal income tax rate due primarily to the effects of preferential tax items. For the three and six months ended June 30, 2023, the effective tax rate differed from the prevailing corporate federal income tax rate due primarily to a tax benefit at 21% from pre-tax losses in addition to the effects of preferential tax items. |
Supplemental Disclosures of Cas
Supplemental Disclosures of Cash Flow Data | 6 Months Ended |
Jun. 30, 2024 | |
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 Six 2024 2023 Non-cash transactions: Establishment of funds withheld liability in connection with a reinsurance transaction $ (6,797) $ – Extraordinary dividend to LNC in the form of fixed maturity AFS securities, mortgage loans on real estate and accrued investment income (929) – Net increase (decrease) in fixed maturity AFS securities and accrued investment income in connection with reinsurance activity 287 (15) |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Pay vs Performance Disclosure | ||||
Net income (loss) | $ 761 | $ (956) | $ 1,418 | $ (1,884) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2024 | |
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 and Basi_2
Nature of Operations and Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation |
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 are not reflected in the results of the reportable segments listed above. |
New Accounting Standards | Adoption of New Accounting Standards In the current period, we did not adopt any new Accounting Standards Updates (“ASUs”) issued by the Financial Accounting Standards Board that were material in presentation or amount. Future Adoption of New Accounting Standards The following table provides a description of future adoptions of new ASUs that may have an impact on our consolidated financial statements when adopted. 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 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures This ASU aims to enhance reportable segment disclosure requirements. It requires that a public entity disclose significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”), disclose and describe other segment items and report additional measures of a segment’s profit or loss if used by the CODM. January 1, 2024 (Annual Filings) and January 1, 2025 (Quarterly Filings) We are evaluating the impact of this ASU to our consolidated financial statements. ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures This ASU establishes new income tax disclosure requirements, along with adjusting certain existing requirements. It specifically requires expanded and disaggregated disclosures around the tax rate reconciliation. January 1, 2025 We are evaluating the impact of this ASU to our consolidated financial statements. |
Fair Value Measurement | 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, LTV, 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 June 30, 2024, and December 31, 2023, 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. |
Nature of Operations and Basi_3
Nature of Operations and Basis of Presentation (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 |
New Accounting Standards (Table
New Accounting Standards (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
New Accounting Standards | The following table provides a description of future adoptions of new ASUs that may have an impact on our consolidated financial statements when adopted. 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 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures This ASU aims to enhance reportable segment disclosure requirements. It requires that a public entity disclose significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”), disclose and describe other segment items and report additional measures of a segment’s profit or loss if used by the CODM. January 1, 2024 (Annual Filings) and January 1, 2025 (Quarterly Filings) We are evaluating the impact of this ASU to our consolidated financial statements. ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures This ASU establishes new income tax disclosure requirements, along with adjusting certain existing requirements. It specifically requires expanded and disaggregated disclosures around the tax rate reconciliation. January 1, 2025 We are evaluating the impact of this ASU to our consolidated financial statements. |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 available-for-sale (“AFS”) securities (in millions) were as follows: As of June 30, 2024 Amortized Cost Gross Unrealized Allowance for Credit Losses Fair Value Gains Losses Fixed maturity AFS securities: Corporate bonds $ 68,308 $ 547 $ 6,819 $ 13 $ 62,023 U.S. government bonds 422 3 37 – 388 State and municipal bonds 2,449 45 254 – 2,240 Foreign government bonds 298 12 54 – 256 RMBS 1,696 20 156 6 1,554 CMBS 1,556 4 158 – 1,402 ABS 13,424 75 533 19 12,947 Hybrid and redeemable preferred securities 218 22 12 1 227 Total fixed maturity AFS securities $ 88,371 $ 728 $ 8,023 $ 39 $ 81,037 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 |
Investments Classified by Contractual Maturity Date | The amortized cost and fair value of fixed maturity AFS securities by contractual maturities (in millions) as of June 30, 2024, were as follows: Amortized Cost Fair Value Due in one year or less $ 4,818 $ 4,766 Due after one year through five years 17,915 17,243 Due after five years through ten years 14,005 12,954 Due after ten years 34,957 30,171 Subtotal 71,695 65,134 Structured securities (RMBS, CMBS, ABS) 16,676 15,903 Total fixed maturity AFS securities $ 88,371 $ 81,037 |
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 June 30, 2024 Less Than or Equal Greater Than Twelve Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (1) Fixed maturity AFS securities: Corporate bonds $ 21,263 $ 2,618 $ 26,263 $ 4,201 $ 47,526 $ 6,819 U.S. government bonds 88 5 198 32 286 37 State and municipal bonds 689 118 563 136 1,252 254 Foreign government bonds 77 24 89 30 166 54 RMBS 516 37 744 119 1,260 156 CMBS 637 68 555 90 1,192 158 ABS 3,052 158 4,679 375 7,731 533 Hybrid and redeemable preferred securities 10 2 100 10 110 12 Total fixed maturity AFS securities $ 26,332 $ 3,030 $ 33,191 $ 4,993 $ 59,523 $ 8,023 Total number of fixed maturity AFS securities in an unrealized loss position 7,077 As of December 31, 2023 Less Than or Equal Greater Than Twelve Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses 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 (1) As of June 30, 2024, and December 31, 2023, we recognized $18 million and $7 million of gross unrealized losses, respectively, in other comprehensive income (loss) (“OCI”) for fixed maturity AFS securities for which an allowance for credit losses has been recorded. The fair value, gross unrealized losses (in millions) and number of fixed maturity AFS securities where the fair value had declined and remained below amortized cost by greater than 20% were as follows: As of June 30, 2024 Fair Value Gross Unrealized Losses Number of Securities (1) Less than six months $ 3,456 $ 1,043 677 Six months or greater, but less than nine months 2,310 961 493 Nine months or greater, but less than twelve months 378 157 124 Twelve months or greater 3,173 1,383 641 Total $ 9,317 $ 3,544 1,935 As of December 31, 2023 Fair Value Gross Unrealized Losses 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 (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 Three Months Ended June 30, 2024 Corporate Bonds RMBS ABS Hybrids Total Balance as of beginning-of-period $ 10 $ 6 $ 4 $ 1 $ 21 Additions from purchases of PCD debt securities (1) – – – – – Additions for securities for which credit losses were not previously recognized 1 – 15 – 16 Additions (reductions) for securities for which credit losses were previously recognized 8 – – – 8 Reductions for disposed securities (1) – – – (1) Reductions for securities charged-off (5) – – – (5) Balance as of end-of-period (2) $ 13 $ 6 $ 19 $ 1 $ 39 For the Six Months Ended June 30, 2024 Corporate Bonds RMBS ABS Hybrids Total Balance as of beginning-of-year $ 8 $ 6 $ 4 $ 1 $ 19 Additions from purchases of PCD debt securities (1) – – – – – Additions for securities for which credit losses were not previously recognized 2 – 15 – 17 Additions (reductions) for securities for which credit losses were previously recognized 11 – – – 11 Reductions for disposed securities (3) – – – (3) Reductions for securities charged-off (5) – – – (5) Balance as of end-of-period (2) $ 13 $ 6 $ 19 $ 1 $ 39 For the Three Months Ended June 30, 2023 Corporate Bonds RMBS ABS Hybrids Total Balance as of beginning-of-period $ 26 $ 6 $ 4 $ 1 $ 37 Additions from purchases of PCD debt securities (1) – – – – – Additions for securities for which credit losses were not previously recognized 2 – – – 2 Additions (reductions) for securities for which credit losses were previously recognized (3) – 1 – (2) Reductions for securities charged-off (12) – – – (12) Balance as of end-of-period (2) $ 13 $ 6 $ 5 $ 1 $ 25 For the Six Months Ended June 30, 2023 Corporate Bonds RMBS ABS Hybrids Total Balance as of beginning-of-year $ 9 $ 7 $ 4 $ 1 $ 21 Additions from purchases of PCD debt securities (1) – – – – – Additions for securities for which credit losses were not previously recognized 20 – – – 20 Additions (reductions) for securities for which credit losses were previously recognized (3) (1) 1 – (3) Reductions for disposed securities (1) – – – (1) Reductions for securities charged-off (12) – – – (12) Balance as of end-of-period (2) $ 13 $ 6 $ 5 $ 1 $ 25 (1) Represents purchased credit-deteriorated (“PCD”) fixed maturity AFS securities. (2) As of June 30, 2024 and 2023 , accrued investment income on fixed maturity AFS securities totaled $811 million and $1.1 billion , respectively, and was excluded from the estimate of credit losses. |
Composition of Current and Past Due Mortgage Loans on Real Estate | The following provides the current and past due composition of our mortgage loans on real estate (in millions): As of June 30, 2024 As of December 31, 2023 Commercial Residential Total Commercial Residential Total Current $ 17,377 $ 2,583 $ 19,960 $ 17,165 $ 1,665 $ 18,830 30 to 59 days past due – 30 30 61 28 89 60 to 89 days past due 22 13 35 – 9 9 90 or more days past due 34 59 93 – 60 60 Allowance for credit losses (92) (40) (132) (86) (28) (114) Unamortized premium (discount) (6) 62 56 (7) 43 36 Mark-to-market gains (losses) (1) (33) (1) (34) (36) (1) (37) Total carrying value $ 17,302 $ 2,706 $ 20,008 $ 17,097 $ 1,776 $ 18,873 (1) Note 12 |
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, excluding certain mortgage loans on real estate that support our modified coinsurance agreements where the investment results are passed directly to the reinsurers: As of As of December 31, 2023 Commercial mortgage loans on real estate $ 26 $ – Residential mortgage loans on real estate 60 62 Total $ 86 $ 62 |
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 June 30, 2024 LTV Debt-Service Coverage Ratio LTV Debt-Service Coverage Ratio LTV Debt-Service Coverage Ratio Total Origination Year 2024 $ 746 1.47 $ 31 1.32 $ – – $ 777 2023 1,345 1.58 47 1.33 – – 1,392 2022 1,732 1.74 100 1.41 1 1.17 1,833 2021 2,296 2.03 49 1.47 – – 2,345 2020 1,176 2.46 4 1.05 – – 1,180 2019 and prior 9,766 2.72 134 1.32 – – 9,900 Total $ 17,061 $ 365 $ 1 $ 17,427 As of December 31, 2023 LTV Debt-Service Coverage Ratio LTV Debt-Service Coverage Ratio LTV Debt-Service Coverage Ratio 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 June 30, 2024 Performing Nonperforming Total Origination Year 2024 $ 957 $ – $ 957 2023 556 4 560 2022 512 24 536 2021 448 15 463 2020 73 3 76 2019 and prior 141 14 155 Total $ 2,687 $ 60 $ 2,747 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 |
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 Three Months Ended Commercial Residential Total Balance as of beginning-of-period $ 84 $ 31 $ 115 Additions (reductions) from provision for credit loss expense (1) 8 9 17 Additions from purchases of PCD mortgage loans on real estate – – – Balance as of end-of-period (2) $ 92 $ 40 $ 132 For the Six Months Ended Commercial Residential Total Balance as of beginning-of-year $ 86 $ 28 $ 114 Additions (reductions) from provision for credit loss expense (1) 6 12 18 Additions from purchases of PCD mortgage loans on real estate – – – Balance as of end-of-period (2) $ 92 $ 40 $ 132 For the Three Months Ended Commercial Residential Total Balance as of beginning-of-period $ 83 $ 20 $ 103 Additions (reductions) from provision for credit loss expense (1) (2) 3 1 Additions from purchases of PCD mortgage loans on real estate – – – Balance as of end-of-period (2) $ 81 $ 23 $ 104 For the Six Months Ended Commercial Residential Total Balance as of beginning-of-year $ 83 $ 15 $ 98 Additions (reductions) from provision for credit loss expense (1) (2) 8 6 Additions from purchases of PCD mortgage loans on real estate – – – Balance as of end-of-period (2) $ 81 $ 23 $ 104 (1) We recognized less than $1 million and $(2) million of credit loss benefit (expense) related to unfunded commitments for mortgage loans on real estate for the three months ended June 30, 2024 and 2023, respectively, and $1 million and $(1) million for the six months ended June 30, 2024 and 2023, respectively. (2) Accrued investment income on mortgage loans on real estate totaled $80 million and $53 million as of June 30, 2024 and 2023 , respectively, and was excluded from the estimate of credit losses. |
Credit Loss Expense Incurred | Details underlying intent to sell impairments and credit loss benefit (expense) incurred as a result of impairments that were recognized in net income (loss) and included in realized gain (loss) on fixed maturity AFS securities (in millions) were as follows: For the Three For the Six 2024 2023 2024 2023 Intent to Sell Impairments (1) Fixed maturity AFS securities: Corporate bonds $ – $ (2,748) $ – $ (2,748) State and municipal bonds – (151) – (151) RMBS – (55) – (55) CMBS – (52) – (52) ABS – (53) – (53) Hybrid and redeemable preferred securities – (3) – (3) Total intent to sell impairments $ – $ (3,062) $ – $ (3,062) Credit Loss Benefit (Expense) Fixed maturity AFS securities: Corporate bonds $ (8) $ 1 $ (10) $ (16) RMBS – – – 1 ABS (15) – (15) – Total credit loss benefit (expense) $ (23) $ 1 $ (25) $ (15) (1) |
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 June 30, 2024 As of December 31, 2023 Carrying Value Fair Value Carrying Value Fair Value Collateral payable for derivative investments (1) $ 7,608 $ 7,608 $ 5,127 $ 5,127 Securities pledged under securities lending agreements (2) 202 194 205 197 Investments pledged for FHLBI (3) 3,200 4,396 2,650 3,603 Total payables for collateral on investments $ 11,010 $ 12,198 $ 7,982 $ 8,927 (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 5 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 Federal Home Loan Bank (“FHLB”) of Indianapolis (“FHLBI”) are included in fixed maturity AFS securities and mortgage loans on real estate on the Consolidated Balance Sheets. The collateral requirements are generally 105% to 115% of the fair value for fixed maturity AFS securities and 155% to 175% of the fair value for mortgage loans on real estate. The cash received in these transactions is primarily invested in cash and invested cash or fixed maturity AFS securities. |
Schedule of Increase (Decrease) in Payables for Collateral on Investments | Increase (decrease) in payables for collateral on investments (in millions) consisted of the following: For the Six 2024 2023 Collateral payable for derivative investments $ 2,481 $ 1,312 Securities pledged under securities lending agreements (3) (8) Investments pledged for FHLBI 550 (980) Total increase (decrease) in payables for collateral on investments $ 3,028 $ 324 |
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 June 30, 2024 Overnight and Continuous Up to 30 Days 30-90 Days Greater Than Total Securities Lending Corporate bonds $ 180 $ – $ – $ – $ 180 Equity securities 7 – – – 7 U.S. government bonds 15 – – – 15 Total gross secured borrowings $ 202 $ – $ – $ – $ 202 As of December 31, 2023 Overnight and Continuous 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 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | 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 June 30, 2024 As of December 31, 2023 Notional Amounts Fair Value Notional Amounts Fair Value Asset Liability Asset Liability Qualifying Hedges Cash flow hedges: Interest rate contracts (1) $ 545 $ 2 $ 17 $ 485 $ 11 $ 47 Foreign currency contracts (1) 4,849 511 49 4,662 423 78 Total cash flow hedges 5,394 513 66 5,147 434 125 Fair value hedges: Interest rate contracts (1) 444 4 19 450 1 39 Foreign currency contracts (1) 25 1 – 25 – 1 Total fair value hedges 469 5 19 475 1 40 Non-Qualifying Hedges Interest rate contracts (1) 73,628 813 1,173 90,829 636 979 Foreign currency contracts (1) 361 15 1 306 11 6 Equity market contracts (1) 254,659 14,180 5,995 225,251 10,244 4,227 Credit contracts (1) 44 – – 91 – – LPR ceded derivative (2) – 202 – – 206 – Embedded derivatives: Reinsurance-related (3) – 585 – – 493 – RILA, fixed indexed annuity and IUL contracts (4) – 1,756 11,417 – 940 9,077 Total derivative instruments $ 334,555 $ 18,069 $ 18,671 $ 322,099 $ 12,965 $ 14,454 (1) These asset and liability balances are presented on a gross basis. Amounts are reported in derivative investments and other liabilities on the Consolidated Balance Sheets after the evaluation for right of offset subject to master netting agreements. (2) Reported in other assets on the Consolidated Balance Sheets. (3) Reported in 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 June 30, 2024 Less Than 1 Year 1 - 5 6 - 10 11 - 30 Over 30 Total Interest rate contracts (1) $ 10,391 $ 19,232 $ 23,278 $ 21,716 $ – $ 74,617 Foreign currency contracts (2) 379 1,028 1,775 2,011 42 5,235 Equity market contracts 209,057 35,253 8,177 8 2,164 254,659 Credit contracts – 44 – – – 44 Total derivative instruments with notional amounts $ 219,827 $ 55,557 $ 33,230 $ 23,735 $ 2,206 $ 334,555 (1) As of June 30, 2024 , the latest maturity date for which we were hedging our exposure to the variability in future cash flows for these instruments was December 1, 2026. (2) |
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 Hedged Assets / (Liabilities) Cumulative Fair Value Hedging Adjustment Included in the Amortized Cost of the Hedged Assets / (Liabilities) As of As of December 31, 2023 As of As of December 31, 2023 Line Item in the Consolidated Balance Sheets in which the Hedged Item is Included Fixed maturity AFS securities, at fair value $ 500 $ 534 $ 14 $ 39 |
Change in Our Unrealized Gain on Derivative Instruments in AOCI | The change in our unrealized gain (loss) on derivative instruments within accumulated other comprehensive income (loss) (“AOCI”) (in millions) was as follows: For the Six 2024 2023 Unrealized Gain (Loss) on Derivative Instruments Balance as of beginning-of-year $ 249 $ 301 Other comprehensive income (loss): Unrealized holding gains (losses) arising during the period: Cash flow hedges: Interest rate contracts 18 124 Foreign currency contracts 28 80 Change in foreign currency exchange rate adjustment 117 (110) Income tax benefit (expense) (35) (20) Less: Reclassification adjustment for gains (losses) included in net income (loss): Cash flow hedges: Interest rate contracts (1) (1) – Foreign currency contracts (1) 29 27 Foreign currency contracts (2) (1) 3 Income tax benefit (expense) (6) (6) Balance as of end-of-period $ 356 $ 351 (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 2024 2023 Realized Gain (Loss) Net Investment Income Benefits Realized Gain (Loss) Net Investment Income Benefits Total Line Items in which the Effects of Fair Value or Cash Flow Hedges are Recorded $ 283 $ 1,232 $ (2,726) $ (3,252) $ 1,476 $ 1,676 Qualifying Hedges Gain or (loss) on fair value hedging relationships: Interest rate contracts: Hedged items – (7) – – (19) – Derivatives designated as hedging instruments – 7 – – 19 – 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 (1) 14 – – 13 – Non-Qualifying Hedges Interest rate contracts (115) – – (319) – – Equity market contracts 817 – – 809 – – Credit contracts – – – (1) – – LPR ceded derivative – – (1) – – (3) Embedded derivatives: Reinsurance-related 42 – – 76 – – RILA, fixed indexed annuity and IUL contracts (328) – – (1,554) – – Gain (Loss) Recognized in Income 2024 2023 Realized Gain (Loss) Net Investment Income Benefits Realized Gain (Loss) Net Investment Income Benefits Total Line Items in which the Effects of Fair Value or Cash Flow Hedges are Recorded $ 226 $ 2,456 $ (989) $ (3,646) $ 2,885 $ 3,871 Qualifying Hedges Gain or (loss) on fair value hedging relationships: Interest rate contracts: Hedged items – (24) – – (3) – Derivatives designated as hedging instruments – 24 – – 3 – Foreign currency contracts: Hedged items – (1) – – – – Derivatives designated as hedging instruments – 1 – – – – 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 (1) 29 – 3 27 – Non-Qualifying Hedges Interest rate contracts (277) – – 12 – – Foreign currency contracts – – – (2) – – Equity market contracts 2,952 – – 750 – – Commodity contracts – – – 11 – – Credit contracts – – – (2) – – LPR ceded derivative – – 4 – – 10 Embedded derivatives: Reinsurance-related 92 – – 9 – – RILA, fixed indexed annuity and IUL contracts (1,970) – – (2,266) – – |
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 June 30, 2024 As of December 31, 2023 S&P Collateral Collateral Collateral Collateral AA- $ 3,145 $ (49) $ 2,330 $ (63) A+ 3,688 – 2,422 (125) A 70 – 82 – A- 676 – 273 – $ 7,579 $ (49) $ 5,107 $ (188) |
Schedule of Offsetting Assets | Information related to the effects of offsetting on the Consolidated Balance Sheets (in millions) was as follows: As of June 30, 2024 Derivative Instruments Embedded Derivative Instruments Total Financial Assets Gross amount of recognized assets $ 15,502 $ 2,341 $ 17,843 Gross amounts offset (7,030) – (7,030) Net amount of assets 8,472 2,341 10,813 Gross amounts not offset: Cash collateral (7,579) – (7,579) Non-cash collateral (1) (893) – (893) Net amount $ – $ 2,341 $ 2,341 Financial Liabilities Gross amount of recognized liabilities 224 11,417 11,641 Gross amounts offset (24) – (24) Net amount of liabilities 200 11,417 11,617 Gross amounts not offset: Cash collateral (49) – (49) Non-cash collateral (2) (151) – (151) Net amount $ – $ 11,417 $ 11,417 (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 $57 million, as the collateral offset is limited to the net estimated fair value of derivatives after application of netting arrangements. As of December 31, 2023 Derivative Instruments Embedded Derivative Instruments 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. |
Schedule of Offsetting Liabilities | Information related to the effects of offsetting on the Consolidated Balance Sheets (in millions) was as follows: As of June 30, 2024 Derivative Instruments Embedded Derivative Instruments Total Financial Assets Gross amount of recognized assets $ 15,502 $ 2,341 $ 17,843 Gross amounts offset (7,030) – (7,030) Net amount of assets 8,472 2,341 10,813 Gross amounts not offset: Cash collateral (7,579) – (7,579) Non-cash collateral (1) (893) – (893) Net amount $ – $ 2,341 $ 2,341 Financial Liabilities Gross amount of recognized liabilities 224 11,417 11,641 Gross amounts offset (24) – (24) Net amount of liabilities 200 11,417 11,617 Gross amounts not offset: Cash collateral (49) – (49) Non-cash collateral (2) (151) – (151) Net amount $ – $ 11,417 $ 11,417 (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 $57 million, as the collateral offset is limited to the net estimated fair value of derivatives after application of netting arrangements. As of December 31, 2023 Derivative Instruments Embedded Derivative Instruments 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. |
DAC, VOBA, DSI and DFEL (Tables
DAC, VOBA, DSI and DFEL (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Deferred Policy Acquisition Costs and Present Value of Future Insurance Profits, Net [Abstract] | |
Reconciliation of DAC, VOBA and DSI | The following table reconciles deferred acquisition costs (“DAC”), value of business acquired (“VOBA”) and deferred sales inducements (“DSI”) (in millions) to the Consolidated Balance Sheets: As of As of DAC, VOBA and DSI Variable Annuities $ 4,024 $ 4,025 Fixed Annuities 444 456 Traditional Life 1,358 1,374 UL and Other 6,096 6,139 Group Protection 133 154 Retirement Plan Services 282 270 Total DAC, VOBA and DSI $ 12,337 $ 12,418 |
Reconciliation of DFEL | The following table reconciles deferred front-end loads (“DFEL”) (in millions) to the Consolidated Balance Sheets: As of As of DFEL Variable Annuities $ 296 $ 300 UL and Other (1) 5,984 5,579 Other Operations (2) 47 44 Total DFEL $ 6,327 $ 5,923 (1) We reported $2.3 billion of ceded DFEL in reinsurance recoverables on the Consolidated Balance Sheets as of June 30, 2024, and 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 $47 million and $44 million of ceded DFEL in reinsurance recoverables on the Consolidated Balance Sheets as of June 30, 2024, and December 31, 2023, respectively. |
DAC | The following tables summarize the changes in DAC (in millions): For the Six Months Ended June 30, 2024 Variable Fixed Traditional UL and Group Protection Retirement Balance as of beginning-of-year $ 3,868 $ 421 $ 1,332 $ 5,709 $ 154 $ 244 Business acquired (sold) through reinsurance – – – (73) (38) – Deferrals 190 23 61 198 70 10 Amortization (185) (32) (73) (149) (53) (10) Balance as of end-of-period $ 3,873 $ 412 $ 1,320 $ 5,685 $ 133 $ 244 For the Six Months Ended June 30, 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 176 23 105 239 53 10 Amortization (187) (34) (71) (144) (49) (9) Balance as of end-of-period $ 3,869 $ 428 $ 1,320 $ 5,613 $ 145 $ 242 |
VOBA | The following tables summarize the changes in VOBA (in millions): For the Six Months Ended Fixed Traditional UL and Balance as of beginning-of-year $ 15 $ 42 $ 402 Deferrals – – 1 Amortization (1) (4) (19) Balance as of end-of-period $ 14 $ 38 $ 384 For the Six Months Ended Fixed Traditional UL and Balance as of beginning-of-year $ 17 $ 50 $ 454 Deferrals – – 1 Amortization (1) (4) (23) Balance as of end-of-period $ 16 $ 46 $ 432 |
DSI | The following tables summarize the changes in DSI (in millions): For the Six Months Ended Variable Annuities Fixed UL and Retirement Plan Services Balance as of beginning-of-year $ 157 $ 20 $ 28 $ 26 Deferrals 1 – 1 12 Amortization (7) (2) (2) – Balance as of end-of-period $ 151 $ 18 $ 27 $ 38 For the Six Months Ended Variable Annuities Fixed UL and Retirement Plan Services Balance as of beginning-of-year $ 167 $ 23 $ 30 $ 17 Deferrals 2 – – 2 Amortization (8) (2) (1) – Balance as of end-of-period $ 161 $ 21 $ 29 $ 19 |
DFEL | The following tables summarize the changes in DFEL (in millions): For the Six Months Ended June 30, 2024 For the Six Months Ended June 30, 2023 Variable Annuities UL and Variable Annuities UL and Balance as of beginning-of-year $ 300 $ 5,579 $ 310 $ 4,766 Deferrals 9 544 10 529 Amortization (13) (139) (15) (126) Balance as of end-of-period 296 5,984 305 5,169 Less: ceded DFEL – 2,346 – 30 Balance as of end-of-period, net of reinsurance $ 296 $ 3,638 $ 305 $ 5,139 |
Reinsurance (Tables)
Reinsurance (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Reinsurance Disclosures [Abstract] | |
Schedule of Assets in Support of Reserves | We held investments with a carrying value of $11.0 billion in support of reserves associated with the LPINE transaction in a funds withheld arrangement as of June 30, 2024, which consisted of the following (in millions): Fixed maturity AFS securities $ 9,349 Mortgage loans on real estate 1,531 Accrued investment income 94 Total $ 10,974 |
MRBs (Tables)
MRBs (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Insurance [Abstract] | |
Reconciles of MRBs Assets and Liabilities | The following table reconciles market risk benefits (“MRBs”) (in millions) to MRB assets and MRB liabilities on the Consolidated Balance Sheets: As of June 30, 2024 As of December 31, 2023 Assets Liabilities Net (Assets) Liabilities Assets Liabilities Net (Assets) Liabilities Variable Annuities $ 4,620 $ 1,152 $ (3,468) $ 3,763 $ 1,583 $ (2,180) Fixed Annuities 95 119 24 96 128 32 Retirement Plan Services 39 4 (35) 35 5 (30) Total MRBs $ 4,754 $ 1,275 $ (3,479) $ 3,894 $ 1,716 $ (2,178) |
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 Six Months Ended As of or For the Six Months Ended Variable Annuities Fixed Annuities Retirement Plan Services Variable Annuities Fixed Annuities Retirement Plan Services Balance as of beginning-of-year $ (2,180) $ 32 $ (30) $ (662) $ (45) $ (22) Less: Effect of cumulative changes in non-performance risk (1,299) (58) (4) (2,173) (40) (2) Balance as of beginning-of-year, before the effect of changes in non-performance risk (881) 90 (26) 1,511 (5) (20) Issuances 5 – – 3 – – Attributed fees collected 760 16 3 755 17 3 Benefit payments (21) – – (35) – – Effect of changes in interest rates (1,470) (27) (8) 215 3 10 Effect of changes in equity markets (1,469) (15) (5) (2,205) (6) (9) Effect of changes in equity index volatility (63) (4) – (372) 2 (3) In-force updates and other changes in MRBs (1) 153 2 1 120 2 – Balance as of end-of-period, before the effect of changes in non-performance risk (2,986) 62 (35) (8) 13 (19) Effect of cumulative changes in non-performance risk (482) (38) – (2,288) (47) (9) Balance as of end-of-period (3,468) 24 (35) (2,296) (34) (28) Less: ceded MRB assets (liabilities) (2,143) – (8) (1,035) – (4) Balance as of end-of-period, net of reinsurance $ (1,325) $ 24 $ (27) $ (1,261) $ (34) $ (24) Weighted-average age of policyholders (years) 72 69 63 72 68 63 Net amount at risk (2) $ 2,135 $ 221 $ 3 $ 4,783 $ 213 $ 6 (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) 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 guaranteed living benefits (“GLBs”), the guaranteed minimum benefit is calculated based on the present value of GLB payments. Our variable annuity products may offer more than one type of guaranteed benefit rider to a policyholder. In instances where more than one guaranteed benefit feature exists in a contract, the guaranteed benefit rider that provides the highest NAR is used in the calculation. |
Separate Accounts (Tables)
Separate Accounts (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 As of 2024 2023 Mutual funds and collective investment trusts $ 164,537 $ 157,578 Exchange-traded funds 345 350 Fixed maturity AFS securities 162 167 Cash and invested cash 4 25 Other investments 151 137 Total separate account assets $ 165,199 $ 158,257 |
Schedule of Reconciliation of Separate Account Liabilities | The following table reconciles separate account liabilities (in millions) to the Consolidated Balance Sheets: As of As of 2024 2023 Variable Annuities $ 116,770 $ 113,356 UL and Other 27,381 25,150 Retirement Plan Services 20,993 19,699 Other Operations (1) 55 52 Total separate account liabilities $ 165,199 $ 158,257 (1) |
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 Six As of or For the Six Variable Annuities UL and Other Retirement Plan Services Variable Annuities UL and Other Retirement Plan Services Balance as of beginning-of-year $ 113,356 $ 25,150 $ 19,699 $ 105,573 $ 20,920 $ 16,996 Gross deposits 1,925 695 1,105 1,367 821 1,078 Withdrawals (6,604) (193) (1,514) (4,915) (154) (1,123) Policyholder assessments (1,301) (493) (89) (1,251) (476) (79) Change in market performance 9,026 2,335 1,802 9,950 2,374 1,953 Net transfers from (to) general account 368 (113) (10) 274 (76) (36) Balance as of end-of-period $ 116,770 $ 27,381 $ 20,993 $ 110,998 $ 23,409 $ 18,789 Cash surrender value $ 115,389 $ 24,979 $ 20,979 $ 109,501 $ 21,080 $ 18,774 |
Policyholder Account Balances (
Policyholder Account Balances (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 As of 2024 2023 Variable Annuities $ 32,853 $ 29,141 Fixed Annuities 25,814 25,330 UL and Other 36,474 36,784 Retirement Plan Services 23,598 23,784 Other (1) 4,976 5,277 Total policyholder account balances $ 123,715 $ 120,316 (1) Represents policyholder account balances reported primarily in Other Operations attributable to the indemnity reinsurance agreements with Protective ($4.6 billion and $4.9 billion as of June 30, 2024, and December 31, 2023, 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 Six Months Ended June 30, 2024 Variable Annuities Fixed UL and Retirement Balance as of beginning-of-year $ 29,141 $ 25,330 $ 36,784 $ 23,784 Gross deposits 2,102 2,646 1,736 1,636 Withdrawals (413) (2,600) (739) (2,275) Policyholder assessments (1) (31) (2,232) (7) Net transfers from (to) separate account (146) – 113 120 Interest credited 328 382 726 340 Change in fair value of embedded derivative instruments 1,842 87 86 – Balance as of end-of-period $ 32,853 $ 25,814 $ 36,474 $ 23,598 Weighted-average crediting rate 2.1 % 3.0 % 4.0 % 2.9 % Net amount at risk (1)(2) $ 2,135 $ 221 $ 298,237 $ 3 Cash surrender value 31,650 24,738 32,091 23,570 As of or For the Six Months Ended June 30, 2023 Variable Annuities Fixed UL and Retirement Balance as of beginning-of-year $ 22,184 $ 23,338 $ 37,258 $ 25,138 Gross deposits 2,437 1,919 1,826 1,317 Withdrawals (328) (1,920) (705) (2,094) Policyholder assessments (1) (28) (2,224) (7) Net transfers from (to) separate account (198) – 76 (259) Interest credited 240 312 735 335 Change in fair value of embedded derivative instruments 1,923 165 76 – Balance as of end-of-period $ 26,257 $ 23,786 $ 37,042 $ 24,430 Weighted-average crediting rate 2.0 % 2.6 % 4.0 % 2.7 % Net amount at risk (1)(2) $ 4,783 $ 213 $ 301,018 $ 6 Cash surrender value 25,146 22,889 32,822 24,425 (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 June 30, 2024 At 1-50 51-100 101-150 Greater Total Range of Guaranteed Minimum Crediting Rate Variable Annuities Up to 1.00% $ – $ – $ – $ – $ – $ – 1.01% - 2.00% 4 – – – 6 10 2.01% - 3.00% 539 – – – – 539 3.01% - 4.00% 1,289 – – – – 1,289 4.01% and above 9 – – – – 9 Other (1) – – – – – 31,006 Total $ 1,841 $ – $ – $ – $ 6 $ 32,853 Fixed Annuities Up to 1.00% $ 615 $ 609 $ 594 $ 463 $ 2,464 $ 4,745 1.01% - 2.00% 304 133 279 329 4,301 5,346 2.01% - 3.00% 1,694 40 5 1 31 1,771 3.01% - 4.00% 1,036 – – – – 1,036 4.01% and above 173 – – – – 173 Other (1) – – – – – 12,743 Total $ 3,822 $ 782 $ 878 $ 793 $ 6,796 $ 25,814 UL and Other Up to 1.00% $ 264 $ – $ 218 $ 119 $ 42 $ 643 1.01% - 2.00% 544 – – – 3,186 3,730 2.01% - 3.00% 6,797 10 150 – – 6,957 3.01% - 4.00% 15,068 – 1 – – 15,069 4.01% and above 3,679 – – – – 3,679 Other (1) – – – – – 6,396 Total $ 26,352 $ 10 $ 369 $ 119 $ 3,228 $ 36,474 Retirement Plan Services Up to 1.00% $ 489 $ 502 $ 727 $ 3,684 $ 4,511 $ 9,913 1.01% - 2.00% 509 1,648 1,382 1,154 220 4,913 2.01% - 3.00% 2,394 25 1 – – 2,420 3.01% - 4.00% 4,667 57 5 5 – 4,734 4.01% and above 1,618 – – – – 1,618 Total $ 9,677 $ 2,232 $ 2,115 $ 4,843 $ 4,731 $ 23,598 As of June 30, 2023 At 1-50 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% 619 – – – – 619 3.01% - 4.00% 1,470 – – – – 1,470 4.01% and above 10 – – – – 10 Other (1) – – – – – 24,146 Total $ 2,103 $ – $ – $ – $ 8 $ 26,257 Fixed Annuities Up to 1.00% $ 756 $ 414 $ 515 $ 467 $ 2,296 $ 4,448 1.01% - 2.00% 577 133 194 498 1,083 2,485 2.01% - 3.00% 1,746 3 6 – – 1,755 3.01% - 4.00% 1,171 – – – – 1,171 4.01% and above 184 – – – – 184 Other (1) – – – – – 13,743 Total $ 4,434 $ 550 $ 715 $ 965 $ 3,379 $ 23,786 UL and Other Up to 1.00% $ 302 $ – $ 206 $ 46 $ 505 $ 1,059 1.01% - 2.00% 557 – 6 – 3,142 3,705 2.01% - 3.00% 7,217 10 139 – – 7,366 3.01% - 4.00% 15,269 – 1 – – 15,270 4.01% and above 3,807 – – – – 3,807 Other (1) – – – – – 5,835 Total $ 27,152 $ 10 $ 352 $ 46 $ 3,647 $ 37,042 Retirement Plan Services Up to 1.00% $ 601 $ 746 $ 3,092 $ 2,693 $ 2,422 $ 9,554 1.01% - 2.00% 637 2,880 1,184 531 – 5,232 2.01% - 3.00% 2,647 1 – – – 2,648 3.01% - 4.00% 5,349 1 – – – 5,350 4.01% and above 1,646 – – – – 1,646 Total $ 10,880 $ 3,628 $ 4,276 $ 3,224 $ 2,422 $ 24,430 (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) | 6 Months Ended |
Jun. 30, 2024 | |
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 As of 2024 2023 Payout Annuities (1) $ 2,001 $ 2,084 Traditional Life (1) 3,514 3,553 Group Protection (2) 5,569 5,689 UL and Other (3) 15,236 15,752 Other Operations (4) 9,280 9,753 Other (5) 3,289 3,343 Total future contract benefits $ 38,889 $ 40,174 (1) See liability for future policy benefits (“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 ($5.4 billion and $5.6 billion as of June 30, 2024, and December 31, 2023, respectively) and Swiss Re ($2.0 billion and $2.1 billion as of June 30, 2024, and December 31, 2023, 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. |
Summary of Changes in Present values of Expected Net Premiums and 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 Six As of or For the Six Payout Annuities Traditional Life Payout Annuities Traditional Life Present Value of Expected Net Premiums Balance as of beginning-of-year $ – $ 6,084 $ – $ 5,896 Less: Effect of cumulative changes in discount rate assumptions – (152) – (584) Beginning balance at original discount rate – 6,236 – 6,480 Effect of actual variances from expected experience – (10) – (257) Adjusted balance as of beginning-of-year – 6,226 – 6,223 Issuances – 206 – 330 Interest accrual – 122 – 116 Net premiums collected – (396) – (395) Flooring impact of LFPB – 2 – 3 Ending balance at original discount rate – 6,160 – 6,277 Effect of cumulative changes in discount rate assumptions – (322) – (329) Balance as of end-of-period $ – $ 5,838 $ – $ 5,948 Present Value of Expected LFPB Balance as of beginning-of-year $ 2,084 $ 9,637 $ 2,003 $ 9,086 Less: Effect of cumulative changes in discount rate assumptions (187) (202) (263) (793) Beginning balance at original discount rate (1) 2,271 9,839 2,266 9,879 Effect of actual variances from expected experience 3 (15) (2) (280) Adjusted balance as of beginning-of-year 2,274 9,824 2,264 9,599 Issuances 39 206 69 330 Interest accrual 43 190 43 179 Benefit payments (98) (357) (93) (309) Ending balance at original discount rate (1) 2,258 9,863 2,283 9,799 Effect of cumulative changes in discount rate assumptions (257) (511) (236) (479) Balance as of end-of-period $ 2,001 $ 9,352 $ 2,047 $ 9,320 Net balance as of end-of-period $ 2,001 $ 3,514 $ 2,047 $ 3,372 Less: reinsurance recoverables (2) 1,527 232 10 263 Net balance as of end-of-period, net of reinsurance $ 474 $ 3,282 $ 2,037 $ 3,109 Weighted-average duration of future policyholder benefit liability (years) 9 10 9 10 (1) Includes deferred profit liability within Payout Annuities of $61 million and $53 million as of June 30, 2024 and 2023, respectively. (2) Increase in Payout Annuities reinsurance recoverables was driven by the fourth quarter 2023 reinsurance transaction. See Note 7 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 Six 2024 2023 Balance as of beginning-of-year $ 5,689 $ 5,462 Less: Effect of cumulative changes in discount rate assumptions (490) (597) Beginning balance at original discount rate 6,179 6,059 Effect of actual variances from expected experience (191) (220) Adjusted beginning-of-year balance 5,988 5,839 New incidence 838 882 Interest 93 83 Benefit payments (757) (734) Ending balance at original discount rate 6,162 6,070 Effect of cumulative changes in discount rate assumptions (593) (577) Balance as of end-of-period 5,569 5,493 Less: reinsurance recoverables (1) 4,284 121 Balance as of end-of-period, net of reinsurance $ 1,285 $ 5,372 Weighted-average duration of liability for future claims (years) 5 4 (1) Increase in reinsurance recoverables was driven by the second quarter 2024 reinsurance transaction. See Note 7 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 Six 2024 2023 Balance as of beginning-of-year $ 15,752 $ 14,777 Less: Effect of cumulative changes in shadow balance in AOCI (853) (905) Balance as of beginning-of-year, excluding shadow balance in AOCI 16,605 15,682 Effect of actual variances from expected experience 136 6 Adjusted beginning-of-year balance 16,741 15,688 Interest accrual 410 377 Net assessments collected 638 190 Benefit payments (521) (360) Balance as of end-of-period, excluding shadow balance in AOCI 17,268 15,895 Effect of cumulative changes in shadow balance in AOCI (2,032) (1,769) Balance as of end-of-period 15,236 14,126 Less: reinsurance recoverables (1) 10,040 2,041 Balance as of end-of-period, net of reinsurance $ 5,196 $ 12,085 Weighted-average duration of additional liabilities for other insurance benefits (years) 16 18 (1) Increase in reinsurance recoverables was driven by the fourth quarter 2023 reinsurance transaction. See Note 7 |
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 June 30, 2024 As of June 30, 2023 Undiscounted Discounted Undiscounted Discounted Payout Annuities Expected future gross premiums $ – $ – $ – $ – Expected future benefit payments 3,435 2,001 3,500 2,047 Traditional Life Expected future gross premiums 13,265 8,980 13,309 9,050 Expected future benefit payments 14,115 9,352 14,013 9,320 The following table summarizes the discounted and undiscounted expected future benefit payments (in millions): As of June 30, 2024 As of June 30, 2023 Undiscounted Discounted Undiscounted Discounted Group Protection Expected future benefit payments $ 7,290 $ 5,569 $ 7,111 $ 5,493 |
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 Three For the Six 2024 2023 2024 2023 Payout Annuities Gross premiums $ 24 $ 44 $ 45 $ 71 Interest accretion 22 21 43 43 Traditional Life Gross premiums 301 297 599 592 Interest accretion 34 32 67 63 The following table summarizes the gross premiums and interest accretion (in millions) recognized in insurance premiums and benefits, respectively, on the Consolidated Statements of Comprehensive Income (Loss): For the Three For the Six 2024 2023 2024 2023 Group Protection Gross premiums $ 893 $ 885 $ 1,789 $ 1,770 Interest accretion 45 41 93 83 The following table summarizes the gross assessments and interest accretion (in millions) recognized in insurance premiums and benefits, respectively, on the Consolidated Statements of Comprehensive Income (Loss): For the Three For the Six 2024 2023 2024 2023 UL and Other Gross assessments $ 773 $ 542 $ 1,539 $ 1,457 Interest accretion 206 190 410 377 |
Summary of Weighted-Average Interest Rates | The following table summarizes the weighted-average interest rates: For the Six Months Ended 2024 2023 Payout Annuities Interest accretion rate 4.0 % 3.9 % Current discount rate 5.4 % 5.2 % Traditional Life Interest accretion rate 4.9 % 5.0 % Current discount rate 5.2 % 5.1 % The following table summarizes the weighted-average interest rates: For the Six Months Ended June 30, 2024 2023 Group Protection Interest accretion rate 3.2 % 2.9 % Current discount rate 5.2 % 5.1 % The following table summarizes the weighted-average interest rates: For the Six 2024 2023 UL and Other Interest accretion rate 5.4 % 4.9 % |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 June 30, 2024 As of December 31, 2023 Carrying Fair Carrying Fair Assets Fixed maturity AFS securities $ 81,037 $ 81,037 $ 82,300 $ 82,300 Trading securities 2,181 2,181 2,321 2,321 Equity securities 295 295 306 306 Mortgage loans on real estate 20,008 17,763 18,873 17,330 Derivative investments 8,472 8,472 6,305 6,305 Other investments 5,385 5,385 4,757 4,757 Cash and invested cash 4,662 4,662 3,193 3,193 MRB assets 4,754 4,754 3,894 3,894 Other assets: Ceded MRBs 39 39 274 274 Indexed annuity ceded embedded derivatives 1,756 1,756 940 940 LPR ceded derivative 202 202 206 206 Separate account assets 165,199 165,199 158,257 158,257 Liabilities Policyholder account balances: Account balances of certain investment contracts (45,072) (34,223) (44,615) (34,020) RILA, fixed annuity and IUL contracts (11,417) (11,417) (9,077) (9,077) Funds withheld reinsurance liabilities – reinsurance-related embedded derivatives 585 585 493 493 MRB liabilities (1,275) (1,275) (1,716) (1,716) Short-term debt (656) (656) (840) (841) Long-term debt (2,177) (2,125) (2,195) (2,125) Other liabilities: Ceded MRBs (2,189) (2,189) (1,149) (1,149) Derivative liabilities (200) (200) (356) (356) Remaining guaranteed interest and similar contracts (367) (367) (411) (411) |
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 As of 2024 2023 Fair value $ 258 $ 288 Aggregate contractual principal 292 326 |
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 June 30, 2024 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 $ – $ 55,206 $ 6,817 $ 62,023 U.S. government bonds 367 21 – 388 State and municipal bonds – 2,240 – 2,240 Foreign government bonds – 256 – 256 RMBS – 1,536 18 1,554 CMBS – 1,380 22 1,402 ABS – 10,950 1,997 12,947 Hybrid and redeemable preferred securities 48 129 50 227 Trading securities – 1,908 273 2,181 Equity securities 2 255 38 295 Mortgage loans on real estate – – 258 258 Derivative investments (1) – 14,739 787 15,526 Other investments – short-term investments – 230 – 230 Cash and invested cash – 4,662 – 4,662 MRB assets – – 4,754 4,754 Other assets: Ceded MRBs – – 39 39 Indexed annuity ceded embedded derivatives – – 1,756 1,756 LPR ceded derivative – – 202 202 Separate account assets 397 164,802 – 165,199 Total assets $ 814 $ 258,314 $ 17,011 $ 276,139 Liabilities Policyholder account balances – RILA, fixed annuity and IUL contracts $ – $ – $ (11,417) $ (11,417) Funds withheld reinsurance liabilities – reinsurance-related embedded derivatives – 638 (53) 585 MRB liabilities – – (1,275) (1,275) Other liabilities: Ceded MRBs – – (2,189) (2,189) Derivative liabilities (1) – (6,459) (795) (7,254) Total liabilities $ – $ (5,821) $ (15,729) $ (21,550) 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) (1) Derivative investment assets and liabilities are presented within the fair value hierarchy on a gross basis by derivative type and not on a master netting basis by counterparty. |
Fair Value Measured on a Recurring Basis Reconciliation | The 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 8 For the Three Months Ended June 30, 2024 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 Assets Investments: (2) Fixed maturity AFS securities: Corporate bonds $ 6,747 $ (1) $ (8) $ 171 $ (92) $ 6,817 RMBS 12 – – 6 – 18 CMBS 8 – – 14 – 22 ABS 1,692 – 7 365 (67) 1,997 Hybrid and redeemable preferred securities 51 – (1) – – 50 Trading securities 271 – – 2 – 273 Equity securities 39 – – (1) – 38 Mortgage loans on real estate 289 4 – (35) – 258 Derivative investments 1 (6) – (3) – (8) Other assets: Ceded MRBs (3) 59 (20) – – – 39 Indexed annuity ceded embedded derivatives (4) 973 11 – 772 – 1,756 LPR ceded derivative (5) 201 1 – – – 202 Liabilities Policyholder account balances – RILA, fixed annuity and IUL contracts (4) (10,896) (339) – (182) – (11,417) Funds withheld reinsurance liabilities – reinsurance-related embedded derivatives (4) (25) (28) – – – (53) Other liabilities – ceded MRBs (3) (2,261) 72 – – – (2,189) Total, net $ (2,839) $ (306) $ (2) $ 1,109 $ (159) $ (2,197) For the Three Months Ended June 30, 2023 Gains Issuances, Transfers Items (Losses) Sales, Into or Included in Maturities, Out Beginning in OCI Settlements, of Ending Fair Net and Calls, Level 3, Fair Value Income Other (1) Net Net Value Assets Investments: (2) Fixed maturity AFS securities: Corporate bonds $ 6,219 $ (12) $ 3 $ (57) $ 24 $ 6,177 State and municipal bonds 36 (2) 3 (1) – 36 RMBS 1 – – 5 – 6 CMBS – – – (4) 4 – ABS 1,100 – (6) 152 (38) 1,208 Hybrid and redeemable preferred securities 59 – (3) – 4 60 Trading securities 458 (2) – (105) – 351 Equity securities 137 (13) – 1 – 125 Mortgage loans on real estate 490 (4) 2 (84) – 404 Derivative investments 1 (1) – – 31 31 Other assets: Ceded MRBs (3) 699 (298) – – – 401 Indexed annuity ceded embedded derivatives (4) 565 4 – 34 – 603 LPR ceded derivative (5) 199 3 – – – 202 Liabilities Policyholder account balances – RILA, fixed annuity and IUL contracts (4) (5,796) (1,558) – (156) – (7,510) Other liabilities – ceded MRBs (3) (909) (531) – – – (1,440) Total, net $ 3,259 $ (2,414) $ (1) $ (215) $ 25 $ 654 For the Six Months Ended June 30, 2024 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 Assets Investments: (2) Fixed maturity AFS securities: Corporate bonds $ 6,469 $ – $ (16) $ 481 $ (117) $ 6,817 State and municipal bonds 5 – – – (5) – RMBS 13 – (1) 6 – 18 CMBS 8 – – 14 – 22 ABS 1,484 1 5 566 (59) 1,997 Hybrid and redeemable preferred securities 48 – 2 – – 50 Trading securities 284 – – (11) – 273 Equity securities 42 (3) – (1) – 38 Mortgage loans on real estate 288 4 1 (35) – 258 Derivative investments 36 5 – 2 (51) (8) Other assets: Ceded MRBs (3) 274 (235) – – – 39 Indexed annuity ceded embedded derivatives (4) 940 44 – 772 – 1,756 LPR ceded derivative (5) 206 (4) – – – 202 Liabilities Policyholder account balances - RILA, fixed annuity and IUL contracts (4) (9,077) (2,015) – (325) – (11,417) Funds withheld reinsurance liabilities – reinsurance-related embedded derivatives (4) – (53) – – – (53) Other liabilities - ceded MRBs (3) (1,149) (1,040) – – – (2,189) Total, net $ (129) $ (3,296) $ (9) $ 1,469 $ (232) $ (2,197) For the Six Months Ended June 30, 2023 Gains Issuances, Transfers Items (Losses) Sales, Into or Included in Maturities, Out Beginning in OCI Settlements, of Ending Fair Net and Calls, Level 3, Fair Value Income Other (1) Net Net Value Assets Investments: (2) Fixed maturity AFS securities: Corporate bonds $ 5,186 $ (12) $ 15 $ 949 $ 39 $ 6,177 State and municipal bonds 35 (2) 4 (1) – 36 RMBS 1 – – 5 – 6 CMBS – – – (4) 4 – ABS 1,117 – 2 320 (231) 1,208 Hybrid and redeemable preferred securities 49 – (3) (2) 16 60 Trading securities 581 2 – (232) – 351 Equity securities 153 (29) – 1 – 125 Mortgage loans on real estate 487 (2) 5 (86) – 404 Derivative investments 2 (2) – – 31 31 Other assets: Ceded MRBs (3) 540 (139) – – – 401 Indexed annuity ceded embedded derivatives (4) 525 11 – 67 – 603 LPR ceded derivative (5) 212 (10) – – – 202 Liabilities Policyholder account balances - RILA, fixed annuity and IUL contracts (4) (4,783) (2,277) – (450) – (7,510) Other liabilities – ceded MRBs (3) (246) (1,194) – – – (1,440) Total, net $ 3,859 $ (3,654) $ 23 $ 567 $ (141) $ 654 (1) The changes in fair value of the interest rate swaps are offset by an adjustment to derivative investments Note 5 (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 Three Months Ended June 30, 2024 Issuances Sales Maturities Settlements Calls Total Investments: Fixed maturity AFS securities: Corporate bonds $ 375 $ (79) $ – $ (125) $ – $ 171 RMBS 6 – – – – 6 CMBS 14 – – – – 14 ABS 462 (30) – (56) (11) 365 Trading securities 4 – – (2) – 2 Equity securities – (1) – – – (1) Mortgage loans on real estate – (30) – (5) – (35) Derivative investments (3) – – – – (3) Other assets – indexed annuity ceded embedded derivatives 26 – – 746 – 772 Policyholder account balances – RILA, fixed annuity and IUL contracts (285) – – 103 – (182) Total, net $ 599 $ (140) $ – $ 661 $ (11) $ 1,109 For the Three Months Ended June 30, 2023 Issuances Sales Maturities Settlements Calls Total Investments: Fixed maturity AFS securities: Corporate bonds $ 253 $ (62) $ (26) $ (211) $ (11) $ (57) RMBS 5 – – – – 5 CMBS – – – (4) – (4) ABS 216 – – (64) – 152 State and municipal bonds – (1) – – – (1) Trading securities – (102) – (3) – (105) Equity securities 1 – – – – 1 Mortgage loans on real estate 3 – – (87) – (84) Other assets – indexed annuity ceded embedded derivatives 34 – – – – 34 Policyholder account balances – RILA, fixed annuity and IUL contracts (316) – – 160 – (156) Total, net $ 196 $ (165) $ (26) $ (209) $ (11) $ (215) For the Six Months Ended June 30, 2024 Issuances Sales Maturities Settlements Calls Total Investments: Fixed maturity AFS securities: Corporate bonds $ 911 $ (206) $ (2) $ (221) $ (1) $ 481 RMBS 6 – – – – 6 CMBS 14 – – – – 14 ABS 726 (30) – (119) (11) 566 Trading securities 4 (2) – (13) – (11) Equity securities – (1) – – – (1) Mortgage loans on real estate 1 (31) – (5) – (35) Derivative investments 4 – (2) – – 2 Other assets – indexed annuity ceded embedded derivatives 52 – – 720 – 772 Policyholder account balances – RILA, fixed annuity and IUL contracts (533) – – 208 – (325) Total, net $ 1,185 $ (270) $ (4) $ 570 $ (12) $ 1,469 For the Six Months Ended June 30, 2023 Issuances Sales Maturities Settlements Calls Total Investments: Fixed maturity AFS securities: Corporate bonds $ 1,390 $ (117) $ (34) $ (279) $ (11) $ 949 RMBS 5 – – – – 5 CMBS – – – (4) – (4) ABS 457 (2) – (135) – 320 State and municipal bonds – (1) – – – (1) Hybrid and redeemable preferred securities – – – – (2) (2) Trading securities – (155) – (77) – (232) Equity securities 1 – – – – 1 Mortgage loans on real estate 4 – – (90) – (86) Other assets – indexed annuity ceded embedded derivatives 84 – – (17) – 67 Policyholder account balances – RILA, fixed annuity and IUL contracts (615) – – 165 – (450) Total, net $ 1,326 $ (275) $ (34) $ (437) $ (13) $ 567 |
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 Three For the Six 2024 2023 2024 2023 Trading securities (1) $ (1) $ (5) $ (1) $ 1 Equity securities (1) – (13) (2) (29) Mortgage loans on real estate (1) (3) (5) (4) (3) Derivative investments (1) (8) – 8 (2) MRBs (2) 160 1,222 845 133 Other assets – LPR ceded derivative (3) 1 3 (4) (10) Funds withheld reinsurance liabilities – reinsurance-related embedded derivatives (1) (28) – (53) – Embedded derivatives – indexed annuity and IUL contracts (1) 228 (55) 469 (208) Total, net $ 349 $ 1,147 $ 1,258 $ (118) (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 Three For the Six 2024 2023 2024 2023 Fixed maturity AFS securities: Corporate bonds $ (27) $ – $ (37) $ 12 State and municipal bonds – 3 – 3 ABS (20) (7) (20) 1 Hybrid and redeemable preferred securities (1) (2) 1 (2) Mortgage loans on real estate – 2 1 4 Total, net $ (48) $ (4) $ (55) $ 18 |
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 Three Months Ended June 30, 2024 For the Three Months Ended June 30, 2023 Transfers Transfers Transfers Transfers Into Out of Into Out of Level 3 Level 3 Total Level 3 Level 3 Total Investments: Fixed maturity AFS securities: Corporate bonds $ – $ (92) $ (92) $ 100 $ (76) $ 24 CMBS – – – 4 – 4 ABS 18 (85) (67) 2 (40) (38) Hybrid and redeemable preferred securities – – – 4 – 4 Derivative investments – – – 31 – 31 Total, net $ 18 $ (177) $ (159) $ 141 $ (116) $ 25 For the Six Months Ended June 30, 2024 For the Six Months Ended June 30, 2023 Transfers Transfers Transfers Transfers Into Out of Into Out of Level 3 Level 3 Total Level 3 Level 3 Total Investments: Fixed maturity AFS securities: Corporate bonds $ 19 $ (136) $ (117) $ 158 $ (119) $ 39 State and municipal bonds – (5) (5) – – – CMBS – – – 4 – 4 ABS 49 (108) (59) 2 (233) (231) Hybrid and redeemable preferred securities – – – 16 – 16 Derivative investments – (51) (51) 31 – 31 Total, net $ 68 $ (300) $ (232) $ 211 $ (352) $ (141) |
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 June 30, 2024: Weighted Fair Valuation Significant Assumption or Average Value Technique Unobservable Inputs Input Ranges Range (1) Assets Investments: Fixed maturity AFS securities: Corporate bonds $ 173 Discounted cash flow Liquidity/duration adjustment (2) 0% – 3.6 % 1.9 % CMBS 8 Discounted cash flow Liquidity/duration adjustment (2) 1.9 % – 1.9 % 1.9 % ABS 11 Discounted cash flow Liquidity/duration adjustment (2) 1.4 % – 1.4 % 1.4 % Hybrid and redeemable preferred securities 7 Discounted cash flow Liquidity/duration adjustment (2) 1.2 % – 1.5 % 1.3 % Equity securities 5 Discounted cash flow Liquidity/duration adjustment (2) 4.5 % – 4.5 % 4.5 % MRB assets 4,754 Other assets: Ceded MRBs 39 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) 0.21 % – 1.92 % 1.55 % Mortality (7) (9) (10) Volatility (8) 1 % – 29 % 14.12 % Indexed annuity ceded embedded derivatives 1,756 Discounted cash flow Lapse (3) 0% – 9 % (10) Mortality (7) (9) (10) LPR ceded derivative 202 Discounted cash flow Lapse (3) 0.10 % 2.00 % (10) Non-performance risk (6) 0.21 % 1.92 % 1.36 % Mortality (7) (9) (10) Liabilities Policyholder account balances – indexed annuity contracts embedded derivatives $ (11,325) Discounted cash flow Lapse (3) 0% – 9 % (10) Mortality (7) (9) (10) MRB liabilities (1,275) Other liabilities – ceded MRBs (2,189) 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) 0.21 % – 1.92 % 1.55 % Mortality (7) (9) (10) Volatility (8) 1 % – 29 % 14.12 % 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 Value Technique Unobservable Inputs Input Ranges Range (1) Assets Investments: Fixed maturity AFS 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 % Indexed annuity ceded embedded derivatives 940 Discounted cash flow Lapse (3) 0% – 9 % (10) Mortality (7) (9) (10) LPR ceded derivative 206 Discounted cash flow Lapse (3) 0.1 % 2.00 % (10) Non-performance risk (6) 1 % 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 % (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. |
Shares and Stockholder's Equi_2
Shares and Stockholder's Equity (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Stockholders' Equity Note [Abstract] | |
Components and Changes In AOCI | The following summarizes the components and changes in AOCI (in millions): For the Six 2024 2023 Unrealized Gain (Loss) on Fixed Maturity AFS Securities and Certain Other Investments Balance as of beginning-of-year $ (3,532) $ (8,526) Unrealized holding gains (losses) arising during the period (1,489) 1,199 Change in foreign currency exchange rate adjustment (117) 119 Change in future contract benefits and policyholder account balances, net of reinsurance 2,215 856 Income tax benefit (expense) (131) (478) Less: Reclassification adjustment for gains (losses) included in net income (loss) (106) (2,722) Income tax benefit (expense) 22 572 Balance as of end-of-period $ (2,970) $ (4,680) Unrealized Gain (Loss) on Derivative Instruments Balance as of beginning-of-year $ 249 $ 301 Unrealized holding gains (losses) arising during the period 46 204 Change in foreign currency exchange rate adjustment 117 (110) Income tax benefit (expense) (35) (20) Less: Reclassification adjustment for gains (losses) included in net income (loss) 27 30 Income tax benefit (expense) (6) (6) Balance as of end-of-period $ 356 $ 351 Market Risk Benefit Non-Performance Risk Gain (Loss) Balance as of beginning-of-year $ 1,069 $ 1,739 Adjustment arising during the period (841) 129 Income tax benefit (expense) 180 (27) Balance as of end-of-period $ 408 $ 1,841 Policyholder Liability Discount Rate Remeasurement Gain (Loss) Balance as of beginning-of-year $ 645 $ 790 Adjustment arising during the period 241 (114) Income tax benefit (expense) (51) 26 Balance as of end-of-period $ 835 $ 702 Foreign Currency Translation Adjustment Balance as of beginning-of-year $ – $ – Foreign currency translation adjustment arising during the period – (1) Balance as of end-of-period $ – $ (1) Funded Status of Employee Benefit Plans Balance as of beginning-of-year $ (16) $ (17) Balance as of end-of-period $ (16) $ (17) |
Schedule of Reclassifications Out of AOCI | The following summarizes the reclassifications out of AOCI (in millions) and the associated line item on the Consolidated Statements of Comprehensive Income (Loss): For the Six 2024 2023 Unrealized Gain (Loss) on Fixed Maturity AFS Securities and Certain Other Investments Reclassification $ (111) $ (3,140) Realized gain (loss) Associated change in future contract benefits 5 418 Benefits Reclassification before income tax benefit (expense) (106) (2,722) Income (loss) before taxes Income tax benefit (expense) 22 572 Federal income tax expense (benefit) Reclassification, net of income tax $ (84) $ (2,150) Net income (loss) Unrealized Gain (Loss) on Derivative Instruments Interest rate contracts $ (1) $ – Interest and debt expense Foreign currency contracts 29 27 Net investment income Foreign currency contracts (1) 3 Realized gain (loss) Reclassifications before income tax benefit (expense) 27 30 Income (loss) before taxes Income tax benefit (expense) (6) (6) Federal income tax expense (benefit) Reclassifications, net of income tax $ 21 $ 24 Net income (loss) |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
Reconciliation of Revenue from Segments to Consolidated | The tables below reconcile our segment measures of performance to the GAAP measures presented on the Consolidated Statements of Comprehensive Income (Loss) (in millions): For the Three For the Six 2024 2023 2024 2023 Revenues Operating revenues: Annuities $ 1,141 $ 1,097 $ 2,319 $ 2,140 Life Insurance 1,318 1,656 2,498 3,294 Group Protection (1) (3,051) 1,400 (1,626) 2,787 Retirement Plan Services 323 328 640 650 Other Operations 34 36 59 75 Revenue adjustments from annuity and life insurance product features 224 (23) 394 (114) Credit loss-related adjustments (33) (5) (33) (26) Investment gains (losses) (2) (204) (3,081) (260) (3,137) Changes in the fair value of reinsurance-related embedded derivatives, trading securities and certain mortgage loans 43 71 90 60 GLB rider fees ceded to LNBAR (232) (232) (462) (465) Gains (losses) on other non-financial assets – sale of subsidiaries/businesses (3) 481 – 481 – Total revenues $ 44 $ 1,247 $ 4,100 $ 5,264 |
Reconciliation Of Income (Loss) From Operations By Segment To Consolidated Net Income (Loss) | For the Three For the Six 2024 2023 2024 2023 Net Income (Loss) Income (loss) from operations: Annuities $ 252 $ 218 $ 475 $ 435 Life Insurance 79 32 28 – Group Protection 129 109 209 179 Retirement Plan Services 37 43 69 81 Other Operations (59) (75) (167) (127) Net annuity product features, after-tax 324 1,084 1,108 262 Net life insurance product features, after-tax (4) (12) 207 (114) 112 Credit loss-related adjustments, after-tax (27) (4) (28) (21) Investment gains (losses), after-tax (2) (160) (2,435) (206) (2,478) Changes in the fair value of reinsurance-related embedded derivatives, trading securities and certain mortgage loans, after-tax 34 56 71 47 GLB rider fees ceded to LNBAR, after-tax (182) (184) (364) (367) Transaction and integration costs related to mergers, acquisitions and divestitures, after-tax (5) (12) (7) (21) (7) Gains (losses) on other non-financial assets – sale of subsidiaries/businesses, after-tax (3) 358 – 358 – Net income (loss) $ 761 $ (956) $ 1,418 $ (1,884) (1) The three and six months ended June 30, 2024, reflect day one impacts pertaining to the second quarter 2024 reinsurance transaction. For more information, see Note 7 (2) The three and six months ended June 30, 2023, include 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 fourth quarter 2023 reinsurance transaction. See Notes 3 7 (3) For information on the sale of the wealth management business, see Note 1 (4) The three and six months ended June 30, 2023, include $330 million after-tax related to the fourth quarter 2023 reinsurance transaction. For more information, see Note 7 (5) Includes costs pertaining to the sale of the wealth management business and the fourth quarter 2023 reinsurance transaction. For more information, see Notes 1 7 |
Reconciliation of Assets from Segment to Consolidated | Other segment information (in millions) was as follows: As of As of 2024 2023 Assets Annuities $ 204,946 $ 186,716 Life Insurance 112,686 107,529 Group Protection 13,943 9,741 Retirement Plan Services 47,830 46,969 Other Operations 19,529 23,021 Total assets $ 398,934 $ 373,976 |
Realized Gain (Loss) (Tables)
Realized Gain (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Realized Gain (Loss) [Abstract] | |
Schedule of Realized Gain (Loss) | Details underlying realized gain (loss) (in millions) were as follows: For the Three For the Six 2024 2023 2024 2023 Fixed maturity AFS securities: Gross gains $ 9 $ 8 $ 16 $ 33 Gross losses (120) (48) (178) (111) Credit loss benefit (expense) (1) (23) 1 (25) (15) Intent to sell impairments (2) – (3,062) – (3,062) Realized gain (loss) on equity securities (3) 1 (13) 12 (27) Credit loss benefit (expense) on mortgage loans on real estate (17) (3) (17) (7) Credit loss benefit (expense) on reinsurance-related assets 7 (3) 9 (4) Realized gain (loss) on the mark-to-market on certain instruments (4)(5) (68) (80) (201) (207) Indexed product derivative results (6) 77 (49) 222 (203) GLB rider fees ceded to LNBAR and attributed fees (31) (28) (61) (57) Realized gain (loss) on subsidiaries/businesses (7) 481 – 481 – Other realized gain (loss) (33) 25 (32) 14 Total realized gain (loss) $ 283 $ (3,252) $ 226 $ (3,646) (1) Includes changes in the allowance for credit losses as well as direct write-downs to amortized cost as a result of negative credit events. (2) The three and six months ended June 30, 2023, include 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 fourth quarter 2023 reinsurance transaction. See Notes 3 7 (3) Includes mark-to-market adjustments on equity securities still held of $4 million and $(13) million for the three months ended June 30, 2024 and 2023, respectively, and $16 million and $(27) million for the six months ended June 30, 2024 and 2023, respectively. (4) Represents changes in the fair values of derivatives we hold as part of VUL hedging, reinsurance-related embedded derivatives and trading securities. (5) Includes gains and losses from fair value changes on mortgage loans on real estate accounted for under the fair value option of less than $3 million and $(3) million for the three months ended June 30, 2024 and 2023, respectively, and $3 million and $(1) million for the six months ended June 30, 2024 and 2023, respectively. (6) 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. (7) For information on the sale of the wealth management business, see Note 1 |
Supplemental Disclosures of C_2
Supplemental Disclosures of Cash Flow Data (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Supplemental Cash Flow Information [Abstract] | |
Summary of Supplemental Cash Flow Data | The following summarizes our supplemental cash flow data (in millions): For the Six 2024 2023 Non-cash transactions: Establishment of funds withheld liability in connection with a reinsurance transaction $ (6,797) $ – Extraordinary dividend to LNC in the form of fixed maturity AFS securities, mortgage loans on real estate and accrued investment income (929) – Net increase (decrease) in fixed maturity AFS securities and accrued investment income in connection with reinsurance activity 287 (15) |
Nature of Operations and Basi_4
Nature of Operations and Basis of Presentation (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
May 06, 2024 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Gain on disposition of business | $ 481 | $ 0 | $ 481 | $ 0 | |
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Wealth Management Business | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Gain on disposition of business | $ 467 | ||||
Transaction expenses | $ 14 | $ 24 | |||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Wealth Management Business | Lincoln National Corporation | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Proceeds from divestiture of interest in consolidated subsidiaries | 725 | ||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Wealth Management Business | The Lincoln National Life Insurance Company | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Proceeds from divestiture of interest in consolidated subsidiaries | $ 598 |
Investments - Reconciliation of
Investments - Reconciliation of Available-for-Sale Securities from Cost Basis to Fair Value (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-Sale [Line Items] | ||||||
Amortized Cost | $ 88,371 | $ 88,231 | ||||
Gross Unrealized Gains | 728 | 1,054 | ||||
Gross Unrealized Losses | 8,023 | 6,966 | ||||
Allowance for Credit Losses | 39 | $ 21 | 19 | $ 25 | $ 37 | $ 21 |
Fair Value | 81,037 | 82,300 | ||||
Corporate bonds | ||||||
Debt Securities, Available-for-Sale [Line Items] | ||||||
Amortized Cost | 68,308 | 68,811 | ||||
Gross Unrealized Gains | 547 | 820 | ||||
Gross Unrealized Losses | 6,819 | 5,757 | ||||
Allowance for Credit Losses | 13 | 10 | 8 | 13 | 26 | 9 |
Fair Value | 62,023 | 63,866 | ||||
U.S. government bonds | ||||||
Debt Securities, Available-for-Sale [Line Items] | ||||||
Amortized Cost | 422 | 414 | ||||
Gross Unrealized Gains | 3 | 7 | ||||
Gross Unrealized Losses | 37 | 28 | ||||
Allowance for Credit Losses | 0 | 0 | ||||
Fair Value | 388 | 393 | ||||
State and municipal bonds | ||||||
Debt Securities, Available-for-Sale [Line Items] | ||||||
Amortized Cost | 2,449 | 2,675 | ||||
Gross Unrealized Gains | 45 | 97 | ||||
Gross Unrealized Losses | 254 | 230 | ||||
Allowance for Credit Losses | 0 | 0 | ||||
Fair Value | 2,240 | 2,542 | ||||
Foreign government bonds | ||||||
Debt Securities, Available-for-Sale [Line Items] | ||||||
Amortized Cost | 298 | 309 | ||||
Gross Unrealized Gains | 12 | 15 | ||||
Gross Unrealized Losses | 54 | 46 | ||||
Allowance for Credit Losses | 0 | 0 | ||||
Fair Value | 256 | 278 | ||||
RMBS | ||||||
Debt Securities, Available-for-Sale [Line Items] | ||||||
Amortized Cost | 1,696 | 1,719 | ||||
Gross Unrealized Gains | 20 | 27 | ||||
Gross Unrealized Losses | 156 | 138 | ||||
Allowance for Credit Losses | 6 | 6 | 6 | 6 | 6 | 7 |
Fair Value | 1,554 | 1,602 | ||||
CMBS | ||||||
Debt Securities, Available-for-Sale [Line Items] | ||||||
Amortized Cost | 1,556 | 1,520 | ||||
Gross Unrealized Gains | 4 | 5 | ||||
Gross Unrealized Losses | 158 | 181 | ||||
Allowance for Credit Losses | 0 | 0 | ||||
Fair Value | 1,402 | 1,344 | ||||
ABS | ||||||
Debt Securities, Available-for-Sale [Line Items] | ||||||
Amortized Cost | 13,424 | 12,556 | ||||
Gross Unrealized Gains | 75 | 62 | ||||
Gross Unrealized Losses | 533 | 571 | ||||
Allowance for Credit Losses | 19 | $ 4 | 4 | $ 5 | $ 4 | $ 4 |
Fair Value | 12,947 | 12,043 | ||||
Hybrid and redeemable preferred securities | ||||||
Debt Securities, Available-for-Sale [Line Items] | ||||||
Amortized Cost | 218 | 227 | ||||
Gross Unrealized Gains | 22 | 21 | ||||
Gross Unrealized Losses | 12 | 15 | ||||
Allowance for Credit Losses | 1 | 1 | ||||
Fair Value | $ 227 | $ 232 |
Investments - Available-for-Sal
Investments - Available-for-Sale Securities by Contractual Maturities (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Amortized Cost | ||
Total fixed maturity AFS securities | $ 88,371 | $ 88,231 |
Fair Value | ||
Total fixed maturity AFS securities | 81,037 | $ 82,300 |
Fixed maturity AFS securities other than structured securities | ||
Amortized Cost | ||
Due in one year or less | 4,818 | |
Due after one year through five years | 17,915 | |
Due after five years through ten years | 14,005 | |
Due after ten years | 34,957 | |
Total fixed maturity AFS securities | 71,695 | |
Fair Value | ||
Due in one year or less | 4,766 | |
Due after one year through five years | 17,243 | |
Due after five years through ten years | 12,954 | |
Due after ten years | 30,171 | |
Total fixed maturity AFS securities | 65,134 | |
Structured securities (RMBS, CMBS, ABS) | ||
Amortized Cost | ||
Total fixed maturity AFS securities | 16,676 | |
Fair Value | ||
Total fixed maturity AFS securities | $ 15,903 |
Investments - Fair Value and Gr
Investments - Fair Value and Gross Unrealized Losses in a Continuous Unrealized Loss Position (Details) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 USD ($) security | Dec. 31, 2023 USD ($) security | |
Fair Value | ||
Less Than or Equal to Twelve Months | $ 26,332 | $ 16,851 |
Greater Than Twelve Months | 33,191 | 43,082 |
Total | 59,523 | 59,933 |
Gross Unrealized Losses | ||
Less Than or Equal to Twelve Months | 3,030 | 1,999 |
Greater Than Twelve Months | 4,993 | 4,967 |
Total | $ 8,023 | $ 6,966 |
Total number of fixed maturity AFS securities in an unrealized loss position | security | 7,077 | 7,167 |
Unrealized holding losses arising during the period | $ 18 | $ 7 |
Corporate bonds | ||
Fair Value | ||
Less Than or Equal to Twelve Months | 21,263 | 13,439 |
Greater Than Twelve Months | 26,263 | 33,285 |
Total | 47,526 | 46,724 |
Gross Unrealized Losses | ||
Less Than or Equal to Twelve Months | 2,618 | 1,744 |
Greater Than Twelve Months | 4,201 | 4,013 |
Total | 6,819 | 5,757 |
U.S. government bonds | ||
Fair Value | ||
Less Than or Equal to Twelve Months | 88 | 65 |
Greater Than Twelve Months | 198 | 194 |
Total | 286 | 259 |
Gross Unrealized Losses | ||
Less Than or Equal to Twelve Months | 5 | 6 |
Greater Than Twelve Months | 32 | 22 |
Total | 37 | 28 |
State and municipal bonds | ||
Fair Value | ||
Less Than or Equal to Twelve Months | 689 | 371 |
Greater Than Twelve Months | 563 | 814 |
Total | 1,252 | 1,185 |
Gross Unrealized Losses | ||
Less Than or Equal to Twelve Months | 118 | 72 |
Greater Than Twelve Months | 136 | 158 |
Total | 254 | 230 |
Foreign government bonds | ||
Fair Value | ||
Less Than or Equal to Twelve Months | 77 | 108 |
Greater Than Twelve Months | 89 | 57 |
Total | 166 | 165 |
Gross Unrealized Losses | ||
Less Than or Equal to Twelve Months | 24 | 31 |
Greater Than Twelve Months | 30 | 15 |
Total | 54 | 46 |
RMBS | ||
Fair Value | ||
Less Than or Equal to Twelve Months | 516 | 355 |
Greater Than Twelve Months | 744 | 840 |
Total | 1,260 | 1,195 |
Gross Unrealized Losses | ||
Less Than or Equal to Twelve Months | 37 | 20 |
Greater Than Twelve Months | 119 | 118 |
Total | 156 | 138 |
CMBS | ||
Fair Value | ||
Less Than or Equal to Twelve Months | 637 | 583 |
Greater Than Twelve Months | 555 | 586 |
Total | 1,192 | 1,169 |
Gross Unrealized Losses | ||
Less Than or Equal to Twelve Months | 68 | 56 |
Greater Than Twelve Months | 90 | 125 |
Total | 158 | 181 |
ABS | ||
Fair Value | ||
Less Than or Equal to Twelve Months | 3,052 | 1,898 |
Greater Than Twelve Months | 4,679 | 7,212 |
Total | 7,731 | 9,110 |
Gross Unrealized Losses | ||
Less Than or Equal to Twelve Months | 158 | 68 |
Greater Than Twelve Months | 375 | 503 |
Total | 533 | 571 |
Hybrid and redeemable preferred securities | ||
Fair Value | ||
Less Than or Equal to Twelve Months | 10 | 32 |
Greater Than Twelve Months | 100 | 94 |
Total | 110 | 126 |
Gross Unrealized Losses | ||
Less Than or Equal to Twelve Months | 2 | 2 |
Greater Than Twelve Months | 10 | 13 |
Total | $ 12 | $ 15 |
Investments - Schedule of Avail
Investments - Schedule of Available-for-Sale Securities Whose Value is Below Amortized Cost (Details) $ in Millions | Jun. 30, 2024 USD ($) security | Dec. 31, 2023 USD ($) security |
Fair Value | ||
Nine months or greater, but less than twelve months | $ 26,332 | $ 16,851 |
Twelve months or greater | 33,191 | 43,082 |
Total | 59,523 | 59,933 |
Gross Unrealized Losses | ||
Nine months or greater, but less than twelve months | 3,030 | 1,999 |
Twelve months or greater | 4,993 | 4,967 |
Total | $ 8,023 | $ 6,966 |
Number of Securities | ||
Total | security | 7,077 | 7,167 |
Fair Value Decline, Greater Than 20% | ||
Fair Value | ||
Less than six months | $ 3,456 | $ 2,480 |
Six months or greater, but less than nine months | 2,310 | 321 |
Nine months or greater, but less than twelve months | 378 | 321 |
Twelve months or greater | 3,173 | 3,485 |
Total | 9,317 | 6,607 |
Gross Unrealized Losses | ||
Less than six months | 1,043 | 916 |
Six months or greater, but less than nine months | 961 | 90 |
Nine months or greater, but less than twelve months | 157 | 106 |
Twelve months or greater | 1,383 | 1,336 |
Total | $ 3,544 | $ 2,448 |
Number of Securities | ||
Less than six months | security | 677 | 529 |
Six months or greater, but less than nine months | security | 493 | 79 |
Nine months or greater, but less than twelve months | security | 124 | 87 |
Twelve months or greater | security | 641 | 704 |
Total | security | 1,935 | 1,399 |
Investments - Narrative (Detail
Investments - Narrative (Details) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2024 USD ($) investment | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) investment | Jun. 30, 2023 USD ($) | Dec. 31, 2023 USD ($) investment | |
Investments [Line Items] | |||||
Increase in gross AFS securities unrealized gains (losses) | $ (1,100) | ||||
Losses from loan modifications | $ 3 | $ 1 | $ 3 | $ 1 | |
Number of partnerships in alternative investment portfolio | investment | 342 | 342 | 332 | ||
Alternative investments as a percentage of overall invested assets | 3% | 3% | |||
Fair value of collateral received that we are permitted to sell or re-pledge | $ 25 | $ 25 | |||
Fixed maturity available-for-sale securities, at fair value | 81,037 | 81,037 | $ 82,300 | ||
Investment commitments | 4,100 | 4,100 | |||
Investment commitments for limited partnerships | 3,100 | 3,100 | |||
Investment commitments for mortgage loans on real estate | 595 | 595 | |||
Investment commitments for private placements | 398 | 398 | |||
Asset Pledged as Collateral | |||||
Investments [Line Items] | |||||
Fixed maturity available-for-sale securities, at fair value | 36 | 36 | |||
Derivative Counterparties | |||||
Investments [Line Items] | |||||
Fair value of collateral received that we are permitted to sell or re-pledge | 1,000 | 1,000 | |||
Fair value of securities received as collateral that have been resold or repledged | $ 60 | $ 60 | |||
Minimum | |||||
Investments [Line Items] | |||||
Percentage of the fair value of securities obtained as collateral under reverse repurchase agreements. | 80% | 80% | |||
Maximum | |||||
Investments [Line Items] | |||||
Percentage of the fair value of securities obtained as collateral under reverse repurchase agreements. | 95% | 95% | |||
Corporate bonds | |||||
Investments [Line Items] | |||||
Amortized cost of portfolio rated below investment grade | 2,700 | ||||
Fair value of portfolio rated below investment grade | $ 2,600 | ||||
Corporate bonds | Credit Assessment | Reinsurer Concentration Risk | |||||
Investments [Line Items] | |||||
Percentage of fair value rated as investment grade | 96% | 96% | 96% | ||
White Chapel V LLC | MBS | |||||
Investments [Line Items] | |||||
Fair value, concentration of risk | $ 1,500 | $ 1,500 | $ 1,300 | ||
White Chapel V LLC | Investments | Lender Concentration Risk | MBS | |||||
Investments [Line Items] | |||||
Concentration risk | 1% | 1% | |||
White Chapel LLC | MBS | |||||
Investments [Line Items] | |||||
Fair value, concentration of risk | 1,100 | $ 1,100 | $ 1,000 | ||
White Chapel LLC | Investments | Lender Concentration Risk | MBS | |||||
Investments [Line Items] | |||||
Concentration risk | 1% | 1% | |||
Financial Service | Securities Investment | |||||
Investments [Line Items] | |||||
Fair value, concentration of risk | 15,800 | $ 15,800 | $ 16,600 | ||
Financial Service | Investments | Lender Concentration Risk | Securities Investment | |||||
Investments [Line Items] | |||||
Concentration risk | 13% | 14% | |||
Consumer Non-Cyclical Industry | Securities Investment | |||||
Investments [Line Items] | |||||
Fair value, concentration of risk | $ 11,000 | $ 11,000 | $ 11,300 | ||
Consumer Non-Cyclical Industry | Investments | Lender Concentration Risk | Securities Investment | |||||
Investments [Line Items] | |||||
Concentration risk | 9% | 10% |
Investments - Changes in Allowa
Investments - Changes in Allowance for Credit Losses on AFS (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Debt Securities, Available-for-Sale, Allowance for Credit Loss [Roll Forward] | ||||
Balance as of beginning-of-period | $ 21 | $ 37 | $ 19 | $ 21 |
Additions from purchases of PCD debt securities | 0 | 0 | 0 | 0 |
Additions for securities for which credit losses were not previously recognized | 16 | 2 | 17 | 20 |
Additions (reductions) for securities for which credit losses were previously recognized | 8 | (2) | 11 | (3) |
Reductions for disposed securities | (1) | (3) | (1) | |
Reductions for securities charged-off | (5) | (12) | (5) | (12) |
Balance as of end-of-period | 39 | 25 | 39 | 25 |
Accrued investment income on fixed maturity AFS securities | 811 | 1,100 | ||
Corporate bonds | ||||
Debt Securities, Available-for-Sale, Allowance for Credit Loss [Roll Forward] | ||||
Balance as of beginning-of-period | 10 | 26 | 8 | 9 |
Additions from purchases of PCD debt securities | 0 | 0 | 0 | 0 |
Additions for securities for which credit losses were not previously recognized | 1 | 2 | 2 | 20 |
Additions (reductions) for securities for which credit losses were previously recognized | 8 | (3) | 11 | (3) |
Reductions for disposed securities | (1) | (3) | (1) | |
Reductions for securities charged-off | (5) | (12) | (5) | (12) |
Balance as of end-of-period | 13 | 13 | 13 | 13 |
RMBS | ||||
Debt Securities, Available-for-Sale, Allowance for Credit Loss [Roll Forward] | ||||
Balance as of beginning-of-period | 6 | 6 | 6 | 7 |
Additions from purchases of PCD debt securities | 0 | 0 | 0 | 0 |
Additions for securities for which credit losses were not previously recognized | 0 | 0 | 0 | 0 |
Additions (reductions) for securities for which credit losses were previously recognized | 0 | 0 | 0 | (1) |
Reductions for disposed securities | 0 | 0 | 0 | |
Reductions for securities charged-off | 0 | 0 | 0 | 0 |
Balance as of end-of-period | 6 | 6 | 6 | 6 |
ABS | ||||
Debt Securities, Available-for-Sale, Allowance for Credit Loss [Roll Forward] | ||||
Balance as of beginning-of-period | 4 | 4 | 4 | 4 |
Additions from purchases of PCD debt securities | 0 | 0 | 0 | 0 |
Additions for securities for which credit losses were not previously recognized | 15 | 0 | 15 | 0 |
Additions (reductions) for securities for which credit losses were previously recognized | 0 | 1 | 0 | 1 |
Reductions for disposed securities | 0 | 0 | 0 | |
Reductions for securities charged-off | 0 | 0 | 0 | 0 |
Balance as of end-of-period | 19 | 5 | 19 | 5 |
Hybrids | ||||
Debt Securities, Available-for-Sale, Allowance for Credit Loss [Roll Forward] | ||||
Balance as of beginning-of-period | 1 | 1 | 1 | 1 |
Additions from purchases of PCD debt securities | 0 | 0 | 0 | 0 |
Additions for securities for which credit losses were not previously recognized | 0 | 0 | 0 | 0 |
Additions (reductions) for securities for which credit losses were previously recognized | 0 | 0 | 0 | 0 |
Reductions for disposed securities | 0 | 0 | 0 | |
Reductions for securities charged-off | 0 | 0 | 0 | 0 |
Balance as of end-of-period | $ 1 | $ 1 | $ 1 | $ 1 |
Investments - Composition of Cu
Investments - Composition of Current and Past Due Mortgage Loans on Real Estate (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Allowance for credit losses | $ (132) | $ (114) |
Unamortized premium (discount) | 56 | 36 |
Mark-to-market gains (losses) | (34) | (37) |
Total carrying value | 20,008 | 18,873 |
Current | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans on real estate, gross | 19,960 | 18,830 |
30 to 59 days past due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans on real estate, gross | 30 | 89 |
60 to 89 days past due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans on real estate, gross | 35 | 9 |
90 or more days past due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans on real estate, gross | 93 | 60 |
Mark-to-market gains (losses) | 30 | 1 |
Commercial | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Allowance for credit losses | (92) | (86) |
Unamortized premium (discount) | (6) | (7) |
Mark-to-market gains (losses) | (33) | (36) |
Total carrying value | 17,302 | 17,097 |
Commercial | Current | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans on real estate, gross | 17,377 | 17,165 |
Commercial | 30 to 59 days past due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans on real estate, gross | 0 | 61 |
Commercial | 60 to 89 days past due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans on real estate, gross | 22 | 0 |
Commercial | 90 or more days past due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans on real estate, gross | 34 | 0 |
Residential | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Allowance for credit losses | (40) | (28) |
Unamortized premium (discount) | 62 | 43 |
Mark-to-market gains (losses) | (1) | (1) |
Total carrying value | 2,706 | 1,776 |
Residential | Current | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans on real estate, gross | 2,583 | 1,665 |
Residential | 30 to 59 days past due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans on real estate, gross | 30 | 28 |
Residential | 60 to 89 days past due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans on real estate, gross | 13 | 9 |
Residential | 90 or more days past due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans on real estate, gross | $ 59 | $ 60 |
Investments - Amortized Cost of
Investments - Amortized Cost of Mortgage Loans on Real Estate on Nonaccrual Status (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual | $ 86 | $ 62 |
Commercial | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual | 26 | 0 |
Residential | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual | $ 60 | $ 62 |
Investments - Commercial Mortga
Investments - Commercial Mortgage Loans by Year of Origination (Details) - Commercial $ in Millions | Jun. 30, 2024 USD ($) | Dec. 31, 2023 USD ($) |
Origination Year | ||
Year one | $ 777 | $ 1,420 |
Year two | 1,392 | 1,849 |
Year three | 1,833 | 2,378 |
Year four | 2,345 | 1,216 |
Year five | 1,180 | 2,494 |
Year six and prior | 9,900 | 7,862 |
Total | 17,427 | 17,219 |
LTV Less Than 65% | ||
Origination Year | ||
Year one | 746 | 1,366 |
Year two | 1,345 | 1,709 |
Year three | 1,732 | 2,317 |
Year four | 2,296 | 1,205 |
Year five | 1,176 | 2,404 |
Year six and prior | 9,766 | 7,770 |
Total | $ 17,061 | $ 16,771 |
Debt-Service Coverage Ratio | ||
Year one | 1.47 | 1.90 |
Year two | 1.58 | 2.07 |
Year three | 1.74 | 3.34 |
Year four | 2.03 | 3.23 |
Year five | 2.46 | 2.39 |
Year six and prior | 2.72 | 2.39 |
LTV 65% to 75% | ||
Origination Year | ||
Year one | $ 31 | $ 54 |
Year two | 47 | 140 |
Year three | 100 | 61 |
Year four | 49 | 11 |
Year five | 4 | 80 |
Year six and prior | 134 | 78 |
Total | $ 365 | $ 424 |
Debt-Service Coverage Ratio | ||
Year one | 1.32 | 1.38 |
Year two | 1.33 | 1.54 |
Year three | 1.41 | 1.55 |
Year four | 1.47 | 1.38 |
Year five | 1.05 | 1.56 |
Year six and prior | 1.32 | 1.60 |
LTV Greater Than 75% | ||
Origination Year | ||
Year one | $ 0 | $ 0 |
Year two | 0 | 0 |
Year three | 1 | 0 |
Year four | 0 | 0 |
Year five | 0 | 10 |
Year six and prior | 0 | 14 |
Total | $ 1 | $ 24 |
Debt-Service Coverage Ratio | ||
Year one | 0 | 0 |
Year two | 0 | 0 |
Year three | 1.17 | 0 |
Year four | 0 | 0 |
Year five | 0 | 2.33 |
Year six and prior | 0 | 0.87 |
Investments - Residential Mortg
Investments - Residential Mortgage Loans by Year of Origination (Details) - Residential - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year one | $ 957 | $ 517 |
Year two | 560 | 555 |
Year three | 536 | 483 |
Year four | 463 | 81 |
Year five | 76 | 112 |
Year six and prior | 155 | 57 |
Total | 2,747 | 1,805 |
Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year one | 957 | 515 |
Year two | 556 | 533 |
Year three | 512 | 465 |
Year four | 448 | 78 |
Year five | 73 | 99 |
Year six and prior | 141 | 53 |
Total | 2,687 | 1,743 |
Nonperforming | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year one | 0 | 2 |
Year two | 4 | 22 |
Year three | 24 | 18 |
Year four | 15 | 3 |
Year five | 3 | 13 |
Year six and prior | 14 | 4 |
Total | $ 60 | $ 62 |
Investments - Changes in Allo_2
Investments - Changes in Allowance for Credit Losses on Mortgage Loans on Real Estate (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance as of beginning-of-period | $ 114 | |||
Additions (reductions) from provision for credit loss expense | $ 17 | $ 3 | 17 | $ 7 |
Balance as of end-of-period | 132 | 132 | ||
Commercial | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance as of beginning-of-period | 86 | |||
Balance as of end-of-period | 92 | 92 | ||
Residential | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance as of beginning-of-period | 28 | |||
Balance as of end-of-period | 40 | 40 | ||
Mortgage loans on real estate | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance as of beginning-of-period | 115 | 103 | 114 | 98 |
Additions (reductions) from provision for credit loss expense | 17 | 1 | 18 | 6 |
Additions from purchases of PCD mortgage loans on real estate | 0 | 0 | 0 | 0 |
Balance as of end-of-period | 132 | 104 | 132 | 104 |
Credit loss (expense) reversal | 1 | (2) | 1 | (1) |
Accrued investment income excluded from credit losses | 80 | 53 | 80 | 53 |
Mortgage loans on real estate | Commercial | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance as of beginning-of-period | 84 | 83 | 86 | 83 |
Additions (reductions) from provision for credit loss expense | 8 | (2) | 6 | (2) |
Additions from purchases of PCD mortgage loans on real estate | 0 | 0 | 0 | 0 |
Balance as of end-of-period | 92 | 81 | 92 | 81 |
Mortgage loans on real estate | Residential | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance as of beginning-of-period | 31 | 20 | 28 | 15 |
Additions (reductions) from provision for credit loss expense | 9 | 3 | 12 | 8 |
Additions from purchases of PCD mortgage loans on real estate | 0 | 0 | 0 | 0 |
Balance as of end-of-period | $ 40 | $ 23 | $ 40 | $ 23 |
Investments - Credit Loss Expen
Investments - Credit Loss Expense Incurred (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Debt Securities, Available-for-Sale, Allowance for Credit Loss [Line Items] | ||||
Total intent to sell impairments | $ 0 | $ (3,062) | $ 0 | $ (3,062) |
Total credit loss benefit (expense) | (16) | (2) | (17) | (20) |
Realized Gain (Loss) | ||||
Debt Securities, Available-for-Sale, Allowance for Credit Loss [Line Items] | ||||
Total credit loss benefit (expense) | (23) | 1 | (25) | (15) |
Corporate bonds | ||||
Debt Securities, Available-for-Sale, Allowance for Credit Loss [Line Items] | ||||
Total intent to sell impairments | 0 | (2,748) | 0 | (2,748) |
Total credit loss benefit (expense) | (1) | (2) | (2) | (20) |
Corporate bonds | Realized Gain (Loss) | ||||
Debt Securities, Available-for-Sale, Allowance for Credit Loss [Line Items] | ||||
Total credit loss benefit (expense) | (8) | 1 | (10) | (16) |
State and municipal bonds | ||||
Debt Securities, Available-for-Sale, Allowance for Credit Loss [Line Items] | ||||
Total intent to sell impairments | 0 | (151) | 0 | (151) |
RMBS | ||||
Debt Securities, Available-for-Sale, Allowance for Credit Loss [Line Items] | ||||
Total intent to sell impairments | 0 | (55) | 0 | (55) |
Total credit loss benefit (expense) | 0 | 0 | 0 | 0 |
RMBS | Realized Gain (Loss) | ||||
Debt Securities, Available-for-Sale, Allowance for Credit Loss [Line Items] | ||||
Total credit loss benefit (expense) | 0 | 0 | 0 | 1 |
CMBS | ||||
Debt Securities, Available-for-Sale, Allowance for Credit Loss [Line Items] | ||||
Total intent to sell impairments | 0 | (52) | 0 | (52) |
ABS | ||||
Debt Securities, Available-for-Sale, Allowance for Credit Loss [Line Items] | ||||
Total intent to sell impairments | 0 | (53) | 0 | (53) |
Total credit loss benefit (expense) | (15) | 0 | (15) | 0 |
ABS | Realized Gain (Loss) | ||||
Debt Securities, Available-for-Sale, Allowance for Credit Loss [Line Items] | ||||
Total credit loss benefit (expense) | (15) | 0 | (15) | 0 |
Hybrid and redeemable preferred securities | ||||
Debt Securities, Available-for-Sale, Allowance for Credit Loss [Line Items] | ||||
Total intent to sell impairments | $ 0 | $ (3) | $ 0 | $ (3) |
Investments - Payables for Coll
Investments - Payables for Collateral on Investments (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Dec. 31, 2023 | |
Carrying Value | ||
Collateral payable for derivative investments | $ 7,608 | $ 5,127 |
Securities pledged under securities lending agreements | 202 | 205 |
Investments pledged for FHLBI | 3,200 | 2,650 |
Total payables for collateral on investments | 11,010 | 7,982 |
Fair Value | ||
Collateral payable for derivative investments | 7,608 | 5,127 |
Securities pledged under securities lending agreements | 194 | 197 |
Investments pledged for FHLBI | 4,396 | 3,603 |
Total payables for collateral on investments | $ 12,198 | $ 8,927 |
Percentage of the fair value of domestic securities obtained as collateral under securities lending agreements. | 102% | 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 | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Investments [Abstract] | ||
Collateral payable for derivative investments | $ 2,481 | $ 1,312 |
Securities pledged under securities lending agreements | (3) | (8) |
Investments pledged for FHLBI | 550 | (980) |
Total increase (decrease) in payables for collateral on investments | $ 3,028 | $ 324 |
Investments - Schedule of Secur
Investments - Schedule of Securities Pledged by Contractual Maturity (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities pledged under securities lending agreements | $ 202 | $ 205 |
Total gross secured borrowings | 202 | 205 |
Corporate bonds | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities pledged under securities lending agreements | 180 | 202 |
Equity securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities pledged under securities lending agreements | 7 | 3 |
U.S. government bonds | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities pledged under securities lending agreements | 15 | |
Overnight and Continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total gross secured borrowings | 202 | 205 |
Overnight and Continuous | Corporate bonds | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities pledged under securities lending agreements | 180 | 202 |
Overnight and Continuous | Equity securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities pledged under securities lending agreements | 7 | 3 |
Overnight and Continuous | U.S. government bonds | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities pledged under securities lending agreements | 15 | |
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 | Equity securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities pledged under securities lending agreements | 0 | 0 |
Up to 30 Days | U.S. government bonds | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities pledged under securities lending agreements | 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 | 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 | U.S. 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 | ||
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 | 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 | U.S. government bonds | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities pledged under securities lending agreements | $ 0 |
Variable Interest Entities (Det
Variable Interest Entities (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Variable Interest Entity [Line Items] | ||
Other investments | $ 5,385 | $ 4,757 |
Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Other investments | $ 4,500 | $ 4,000 |
Derivative Instruments - Outsta
Derivative Instruments - Outstanding Derivative Instruments With Off-Balance-Sheet Risks (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Outstanding derivative instruments with off-balance-sheet risks | ||
Notional Amounts | $ 334,555 | $ 322,099 |
Fair Value, Asset | 18,069 | 12,965 |
Fair Value, Liability | 18,671 | 14,454 |
Change in foreign currency exchange rate adjustment | Qualifying Hedges | ||
Outstanding derivative instruments with off-balance-sheet risks | ||
Notional Amounts | 5,394 | 5,147 |
Fair Value, Asset | 513 | 434 |
Fair Value, Liability | 66 | 125 |
Fair value hedges: | Qualifying Hedges | ||
Outstanding derivative instruments with off-balance-sheet risks | ||
Notional Amounts | 469 | 475 |
Fair Value, Asset | 5 | 1 |
Fair Value, Liability | 19 | 40 |
Interest rate contracts | ||
Outstanding derivative instruments with off-balance-sheet risks | ||
Notional Amounts | 74,617 | |
Interest rate contracts | Non-Qualifying Hedges | ||
Outstanding derivative instruments with off-balance-sheet risks | ||
Notional Amounts | 73,628 | 90,829 |
Fair Value, Asset | 813 | 636 |
Fair Value, Liability | 1,173 | 979 |
Interest rate contracts | Change in foreign currency exchange rate adjustment | Qualifying Hedges | ||
Outstanding derivative instruments with off-balance-sheet risks | ||
Notional Amounts | 545 | 485 |
Fair Value, Asset | 2 | 11 |
Fair Value, Liability | 17 | 47 |
Interest rate contracts | Fair value hedges: | Qualifying Hedges | ||
Outstanding derivative instruments with off-balance-sheet risks | ||
Notional Amounts | 444 | 450 |
Fair Value, Asset | 4 | 1 |
Fair Value, Liability | 19 | 39 |
Foreign currency contracts | ||
Outstanding derivative instruments with off-balance-sheet risks | ||
Notional Amounts | 5,235 | |
Foreign currency contracts | Non-Qualifying Hedges | ||
Outstanding derivative instruments with off-balance-sheet risks | ||
Notional Amounts | 361 | 306 |
Fair Value, Asset | 15 | 11 |
Fair Value, Liability | 1 | 6 |
Foreign currency contracts | Change in foreign currency exchange rate adjustment | Qualifying Hedges | ||
Outstanding derivative instruments with off-balance-sheet risks | ||
Notional Amounts | 4,849 | 4,662 |
Fair Value, Asset | 511 | 423 |
Fair Value, Liability | 49 | 78 |
Foreign currency contracts | Fair value hedges: | Qualifying Hedges | ||
Outstanding derivative instruments with off-balance-sheet risks | ||
Notional Amounts | 25 | 25 |
Fair Value, Asset | 1 | 0 |
Fair Value, Liability | 0 | 1 |
Equity market contracts | ||
Outstanding derivative instruments with off-balance-sheet risks | ||
Notional Amounts | 254,659 | |
Equity market contracts | Non-Qualifying Hedges | ||
Outstanding derivative instruments with off-balance-sheet risks | ||
Notional Amounts | 254,659 | 225,251 |
Fair Value, Asset | 14,180 | 10,244 |
Fair Value, Liability | 5,995 | 4,227 |
Credit contracts | ||
Outstanding derivative instruments with off-balance-sheet risks | ||
Notional Amounts | 44 | |
Credit contracts | Non-Qualifying Hedges | ||
Outstanding derivative instruments with off-balance-sheet risks | ||
Notional Amounts | 44 | 91 |
Fair Value, Asset | 0 | 0 |
Fair Value, Liability | 0 | 0 |
LPR ceded derivative | Non-Qualifying Hedges | ||
Outstanding derivative instruments with off-balance-sheet risks | ||
Notional Amounts | 0 | 0 |
Fair Value, Asset | 202 | 206 |
Fair Value, Liability | 0 | 0 |
Reinsurance-related | Non-Qualifying Hedges | ||
Outstanding derivative instruments with off-balance-sheet risks | ||
Notional Amounts | 0 | 0 |
Fair Value, Asset | 585 | 493 |
Fair Value, Liability | 0 | 0 |
RILA, fixed indexed annuity and IUL contracts | Non-Qualifying Hedges | ||
Outstanding derivative instruments with off-balance-sheet risks | ||
Notional Amounts | 0 | 0 |
Fair Value, Asset | 1,756 | 940 |
Fair Value, Liability | $ 11,417 | $ 9,077 |
Derivative Instruments - Maturi
Derivative Instruments - Maturity of the Notional Amounts of Derivative Financial Instruments (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Derivative [Line Items] | ||
Less Than 1 Year | $ 219,827 | |
1 - 5 Years | 55,557 | |
6 - 10 Years | 33,230 | |
11 - 30 Years | 23,735 | |
Over 30 Years | 2,206 | |
Total | 334,555 | $ 322,099 |
Interest rate contracts | ||
Derivative [Line Items] | ||
Less Than 1 Year | 10,391 | |
1 - 5 Years | 19,232 | |
6 - 10 Years | 23,278 | |
11 - 30 Years | 21,716 | |
Over 30 Years | 0 | |
Total | 74,617 | |
Foreign currency contracts | ||
Derivative [Line Items] | ||
Less Than 1 Year | 379 | |
1 - 5 Years | 1,028 | |
6 - 10 Years | 1,775 | |
11 - 30 Years | 2,011 | |
Over 30 Years | 42 | |
Total | 5,235 | |
Equity market contracts | ||
Derivative [Line Items] | ||
Less Than 1 Year | 209,057 | |
1 - 5 Years | 35,253 | |
6 - 10 Years | 8,177 | |
11 - 30 Years | 8 | |
Over 30 Years | 2,164 | |
Total | 254,659 | |
Credit contracts | ||
Derivative [Line Items] | ||
Less Than 1 Year | 0 | |
1 - 5 Years | 44 | |
6 - 10 Years | 0 | |
11 - 30 Years | 0 | |
Over 30 Years | 0 | |
Total | $ 44 |
Derivative Instruments - Cumula
Derivative Instruments - Cumulative Basis Adjustments for Fair Value Hedges (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Amortized Cost of the Hedged Assets / (Liabilities) | $ 500 | $ 534 |
Cumulative Fair Value Hedging Adjustment Included in the Amortized Cost of the Hedged Assets / (Liabilities) | $ 14 | $ 39 |
Derivative Instruments - Change
Derivative Instruments - Change in Our Unrealized Gain on Derivative Instruments in AOCI (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Change in our unrealized gain on derivative instruments in accumulated OCI | ||
Balance as of beginning-of-year | $ 10,507 | |
Balance as of end-of-period | 11,029 | $ 10,401 |
Unrealized Gain (Loss) on Derivative Instruments | ||
Change in our unrealized gain on derivative instruments in accumulated OCI | ||
Balance as of beginning-of-year | 249 | 301 |
Income tax benefit (expense) | (35) | (20) |
Reclassification adjustment for gains (losses) included in net income (loss) | 27 | 30 |
Income tax benefit (expense) | (6) | (6) |
Balance as of end-of-period | 356 | 351 |
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) | 0 |
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) | 29 | 27 |
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) | (1) | 3 |
Unrealized holding gains (losses) arising during the period | ||
Change in our unrealized gain on derivative instruments in accumulated OCI | ||
Change in foreign currency exchange rate adjustment | 46 | 204 |
Unrealized holding gains (losses) arising during the period | Interest rate contracts | ||
Change in our unrealized gain on derivative instruments in accumulated OCI | ||
Change in foreign currency exchange rate adjustment | 18 | 124 |
Unrealized holding gains (losses) arising during the period | Foreign currency contracts | ||
Change in our unrealized gain on derivative instruments in accumulated OCI | ||
Change in foreign currency exchange rate adjustment | 28 | 80 |
Change in foreign currency exchange rate adjustment | ||
Change in our unrealized gain on derivative instruments in accumulated OCI | ||
Change in foreign currency exchange rate adjustment | $ 117 | $ (110) |
Derivative Instruments - Effect
Derivative Instruments - Effects of Qualifying and Non-Qualifying Hedges (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Realized gain (loss) | $ 283 | $ (3,252) | $ 226 | $ (3,646) |
Net investment income | 1,232 | 1,476 | 2,456 | 2,885 |
Qualifying Hedges | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Realized gain (loss) | 283 | (3,252) | 226 | (3,646) |
Net investment income | 1,232 | 1,476 | 2,456 | 2,885 |
Interest and debt expense | (2,726) | 1,676 | (989) | 3,871 |
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 | 0 |
Foreign currency contracts, amount of gain or (loss) reclassified from AOCI into income | (1) | 0 | (1) | 3 |
Realized Gain (Loss) | Interest rate contracts | Non-Qualifying Hedges | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Non-Qualifying Hedges | (115) | (319) | (277) | 12 |
Realized Gain (Loss) | Foreign currency contracts | Non-Qualifying Hedges | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Non-Qualifying Hedges | 0 | (2) | ||
Realized Gain (Loss) | Equity market contracts | Non-Qualifying Hedges | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Non-Qualifying Hedges | 817 | 809 | 2,952 | 750 |
Realized Gain (Loss) | Commodity contracts | Non-Qualifying Hedges | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Non-Qualifying Hedges | 0 | 11 | ||
Realized Gain (Loss) | Credit contracts | Non-Qualifying Hedges | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Non-Qualifying Hedges | 0 | (1) | 0 | (2) |
Realized Gain (Loss) | LPR ceded derivative | Non-Qualifying Hedges | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Non-Qualifying Hedges | 0 | 0 | 0 | 0 |
Realized Gain (Loss) | Reinsurance-related | Non-Qualifying Hedges | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Non-Qualifying Hedges | 42 | 76 | 92 | 9 |
Realized Gain (Loss) | RILA, fixed indexed annuity and IUL contracts | Non-Qualifying Hedges | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Non-Qualifying Hedges | (328) | (1,554) | (1,970) | (2,266) |
Net Investment Income | Qualifying Hedges | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Interest rate contracts, amount of gain or (loss) reclassified from AOCI into income | (1) | 0 | (1) | 0 |
Foreign currency contracts, amount of gain or (loss) reclassified from AOCI into income | 14 | 13 | 29 | 27 |
Net Investment Income | Interest rate contracts | Qualifying Hedges | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Hedged items | (7) | (19) | (24) | (3) |
Derivatives designated as hedging instruments | 7 | 19 | 24 | 3 |
Net Investment Income | Interest rate contracts | Non-Qualifying Hedges | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Non-Qualifying Hedges | 0 | 0 | 0 | 0 |
Net Investment Income | Foreign currency contracts | Qualifying Hedges | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Hedged items | (1) | 0 | ||
Derivatives designated as hedging instruments | 1 | 0 | ||
Net Investment Income | Foreign currency contracts | Non-Qualifying Hedges | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Non-Qualifying Hedges | 0 | 0 | ||
Net Investment Income | Equity market contracts | Non-Qualifying Hedges | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Non-Qualifying Hedges | 0 | 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 | 0 |
Net Investment Income | LPR ceded derivative | Non-Qualifying Hedges | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Non-Qualifying Hedges | 0 | 0 | 0 | 0 |
Net Investment Income | Reinsurance-related | Non-Qualifying Hedges | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Non-Qualifying Hedges | 0 | 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 | 0 |
Benefits | Qualifying Hedges | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Interest rate contracts, amount of gain or (loss) reclassified from AOCI into income | 0 | 0 | 0 | 0 |
Foreign currency contracts, amount of gain or (loss) reclassified from AOCI into income | 0 | 0 | 0 | 0 |
Benefits | Interest rate contracts | Qualifying Hedges | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Hedged items | 0 | 0 | 0 | 0 |
Derivatives designated as hedging instruments | 0 | 0 | 0 | 0 |
Benefits | Interest rate contracts | Non-Qualifying Hedges | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Non-Qualifying Hedges | 0 | 0 | 0 | 0 |
Benefits | Foreign currency contracts | Qualifying Hedges | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Hedged items | 0 | 0 | ||
Derivatives designated as hedging instruments | 0 | 0 | ||
Benefits | Foreign currency contracts | Non-Qualifying Hedges | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Non-Qualifying Hedges | 0 | 0 | ||
Benefits | Equity market contracts | Non-Qualifying Hedges | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Non-Qualifying Hedges | 0 | 0 | 0 | 0 |
Benefits | Commodity contracts | Non-Qualifying Hedges | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Non-Qualifying Hedges | 0 | 0 | ||
Benefits | Credit contracts | Non-Qualifying Hedges | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Non-Qualifying Hedges | 0 | 0 | 0 | 0 |
Benefits | LPR ceded derivative | Non-Qualifying Hedges | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Non-Qualifying Hedges | (1) | (3) | 4 | 10 |
Benefits | Reinsurance-related | Non-Qualifying Hedges | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Non-Qualifying Hedges | 0 | 0 | 0 | 0 |
Benefits | RILA, fixed indexed annuity and IUL contracts | Non-Qualifying Hedges | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Non-Qualifying Hedges | $ 0 | $ 0 | $ 0 | $ 0 |
Derivative Instruments - Narrat
Derivative Instruments - Narrative (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Cash flow hedge gain (loss) to be reclassified within 12 months | $ 64 |
Derivative Instruments - Schedu
Derivative Instruments - Schedule of Collateral Amounts With Rights to Reclaim or Obligation to Return Cash (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Credit Derivatives [Line Items] | ||
Collateral Posted by Counter- Party (Held by LNL) | $ 7,579 | $ 5,107 |
Collateral Posted by LNL (Held by Counter- Party) | (49) | (188) |
AA- | ||
Credit Derivatives [Line Items] | ||
Collateral Posted by Counter- Party (Held by LNL) | 3,145 | 2,330 |
Collateral Posted by LNL (Held by Counter- Party) | (49) | (63) |
A+ | ||
Credit Derivatives [Line Items] | ||
Collateral Posted by Counter- Party (Held by LNL) | 3,688 | 2,422 |
Collateral Posted by LNL (Held by Counter- Party) | 0 | (125) |
A | ||
Credit Derivatives [Line Items] | ||
Collateral Posted by Counter- Party (Held by LNL) | 70 | 82 |
Collateral Posted by LNL (Held by Counter- Party) | 0 | 0 |
A- | ||
Credit Derivatives [Line Items] | ||
Collateral Posted by Counter- Party (Held by LNL) | 676 | 273 |
Collateral Posted by LNL (Held by Counter- Party) | $ 0 | $ 0 |
Derivative Instruments - Sche_2
Derivative Instruments - Schedule of Offsetting Assets and Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Financial Assets | ||
Gross amount of recognized assets | $ 17,843 | $ 12,147 |
Gross amounts offset | (7,030) | (4,409) |
Net amount of assets | 10,813 | 7,738 |
Cash collateral | (7,579) | (5,107) |
Non-cash collateral | (893) | (1,198) |
Net amount | 2,341 | 1,433 |
Financial Liabilities | ||
Gross amount of recognized liabilities | 11,641 | 10,045 |
Gross amounts offset | (24) | (612) |
Net amount of liabilities | 11,617 | 9,433 |
Cash collateral | (49) | (188) |
Non-cash collateral | (151) | (168) |
Net amount | 11,417 | 9,077 |
Excess non-cash collateral received | 1,300 | 1,300 |
Excess non-cash collateral pledged | 57 | 81 |
Derivative Instruments | ||
Financial Assets | ||
Gross amount of recognized assets | 15,502 | 10,714 |
Gross amounts offset | (7,030) | (4,409) |
Net amount of assets | 8,472 | 6,305 |
Cash collateral | (7,579) | (5,107) |
Non-cash collateral | (893) | (1,198) |
Net amount | 0 | 0 |
Financial Liabilities | ||
Gross amount of recognized liabilities | 224 | 968 |
Gross amounts offset | (24) | (612) |
Net amount of liabilities | 200 | 356 |
Cash collateral | (49) | (188) |
Non-cash collateral | (151) | (168) |
Net amount | 0 | 0 |
Embedded Derivative Instruments | ||
Financial Assets | ||
Gross amount of recognized assets | 2,341 | 1,433 |
Gross amounts offset | 0 | 0 |
Net amount of assets | 2,341 | 1,433 |
Cash collateral | 0 | 0 |
Non-cash collateral | 0 | 0 |
Net amount | 2,341 | 1,433 |
Financial Liabilities | ||
Gross amount of recognized liabilities | 11,417 | 9,077 |
Gross amounts offset | 0 | 0 |
Net amount of liabilities | 11,417 | 9,077 |
Cash collateral | 0 | 0 |
Non-cash collateral | 0 | 0 |
Net amount | $ 11,417 | $ 9,077 |
DAC, VOBA, DSI, and DFEL - Reco
DAC, VOBA, DSI, and DFEL - Reconciliation of DAC, VOBA and DSI (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||
DAC, VOBA and DSI | $ 12,337 | $ 12,418 |
Traditional Life | ||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||
DAC, VOBA and DSI | 1,358 | 1,374 |
UL and Other | ||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||
DAC, VOBA and DSI | 6,096 | 6,139 |
Group Protection (1) | ||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||
DAC, VOBA and DSI | 133 | 154 |
Retirement Plan Services | ||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||
DAC, VOBA and DSI | 282 | 270 |
Variable Annuities | ||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||
DAC, VOBA and DSI | 4,024 | 4,025 |
Fixed Annuities | ||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||
DAC, VOBA and DSI | $ 444 | $ 456 |
DAC, VOBA, DSI, and DFEL - Re_2
DAC, VOBA, DSI, and DFEL - Reconciliation of DFEL (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Dec. 31, 2022 |
Deferred Policy Acquisition Cost [Line Items] | ||||
DFEL | $ 6,327 | $ 5,923 | ||
Other Operations | ||||
Deferred Policy Acquisition Cost [Line Items] | ||||
DFEL | 47 | 44 | ||
Less: ceded DFEL | 47 | 44 | ||
UL and Other | ||||
Deferred Policy Acquisition Cost [Line Items] | ||||
DFEL | 5,984 | 5,579 | $ 5,169 | $ 4,766 |
Less: ceded DFEL | 2,346 | 2,300 | 30 | |
Variable Annuities | ||||
Deferred Policy Acquisition Cost [Line Items] | ||||
DFEL | 296 | $ 300 | 305 | $ 310 |
Less: ceded DFEL | $ 0 | $ 0 |
DAC, VOBA, DSI, and DFEL - DAC
DAC, VOBA, DSI, and DFEL - DAC (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||||
Amortization | $ (252) | $ (248) | $ (502) | $ (494) |
Traditional Life | ||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||||
Balance as of beginning-of-year | 1,332 | 1,286 | ||
Business acquired (sold) through reinsurance | 0 | |||
Deferrals | 61 | 105 | ||
Amortization | (73) | (71) | ||
Balance as of end-of-period | 1,320 | 1,320 | 1,320 | 1,320 |
UL and Other | ||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||||
Balance as of beginning-of-year | 5,709 | 5,518 | ||
Business acquired (sold) through reinsurance | (73) | |||
Deferrals | 198 | 239 | ||
Amortization | (149) | (144) | ||
Balance as of end-of-period | 5,685 | 5,613 | 5,685 | 5,613 |
Group Protection (1) | ||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||||
Balance as of beginning-of-year | 154 | 141 | ||
Business acquired (sold) through reinsurance | (38) | |||
Deferrals | 70 | 53 | ||
Amortization | (53) | (49) | ||
Balance as of end-of-period | 133 | 145 | 133 | 145 |
Retirement Plan Services | ||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||||
Balance as of beginning-of-year | 244 | 241 | ||
Business acquired (sold) through reinsurance | 0 | |||
Deferrals | 10 | 10 | ||
Amortization | (10) | (9) | ||
Balance as of end-of-period | 244 | 242 | 244 | 242 |
Variable Annuities | ||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||||
Balance as of beginning-of-year | 3,868 | 3,880 | ||
Business acquired (sold) through reinsurance | 0 | |||
Deferrals | 190 | 176 | ||
Amortization | (185) | (187) | ||
Balance as of end-of-period | 3,873 | 3,869 | 3,873 | 3,869 |
Fixed Annuities | ||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||||
Balance as of beginning-of-year | 421 | 439 | ||
Business acquired (sold) through reinsurance | 0 | |||
Deferrals | 23 | 23 | ||
Amortization | (32) | (34) | ||
Balance as of end-of-period | $ 412 | $ 428 | $ 412 | $ 428 |
DAC, VOBA, DSI and DFEL - Narra
DAC, VOBA, DSI and DFEL - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | ||||
DAC amortization | $ 252 | $ 248 | $ 502 | $ 494 |
VOBA amortization | 12 | 14 | 24 | 28 |
DSI amortization | 5 | 5 | 11 | 11 |
DFEL amortization | $ 78 | $ 72 | $ 152 | $ 141 |
DAC, VOBA, DSI, and DFEL - VOBA
DAC, VOBA, DSI, and DFEL - VOBA (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Movement in Present Value of Future Insurance Profits [Roll Forward] | ||||
Amortization | $ (12) | $ (14) | $ (24) | $ (28) |
Traditional Life | ||||
Movement in Present Value of Future Insurance Profits [Roll Forward] | ||||
Balance as of beginning-of-year | 42 | 50 | ||
Deferrals | 0 | 0 | ||
Amortization | (4) | (4) | ||
Balance as of end-of-period | 38 | 46 | 38 | 46 |
UL and Other | ||||
Movement in Present Value of Future Insurance Profits [Roll Forward] | ||||
Balance as of beginning-of-year | 402 | 454 | ||
Deferrals | 1 | 1 | ||
Amortization | (19) | (23) | ||
Balance as of end-of-period | 384 | 432 | 384 | 432 |
Fixed Annuities | ||||
Movement in Present Value of Future Insurance Profits [Roll Forward] | ||||
Balance as of beginning-of-year | 15 | 17 | ||
Deferrals | 0 | 0 | ||
Amortization | (1) | (1) | ||
Balance as of end-of-period | $ 14 | $ 16 | $ 14 | $ 16 |
DAC, VOBA, DSI, and DFEL - DSI
DAC, VOBA, DSI, and DFEL - DSI (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Movement in Deferred Sales Inducements [Roll Forward] | ||||
Amortization | $ (5) | $ (5) | $ (11) | $ (11) |
UL and Other | ||||
Movement in Deferred Sales Inducements [Roll Forward] | ||||
Balance as of beginning-of-year | 28 | 30 | ||
Deferrals | 1 | 0 | ||
Amortization | (2) | (1) | ||
Balance as of end-of-period | 27 | 29 | 27 | 29 |
Retirement Plan Services | ||||
Movement in Deferred Sales Inducements [Roll Forward] | ||||
Balance as of beginning-of-year | 26 | 17 | ||
Deferrals | 12 | 2 | ||
Amortization | 0 | 0 | ||
Balance as of end-of-period | 38 | 19 | 38 | 19 |
Variable Annuities | ||||
Movement in Deferred Sales Inducements [Roll Forward] | ||||
Balance as of beginning-of-year | 157 | 167 | ||
Deferrals | 1 | 2 | ||
Amortization | (7) | (8) | ||
Balance as of end-of-period | 151 | 161 | 151 | 161 |
Fixed Annuities | ||||
Movement in Deferred Sales Inducements [Roll Forward] | ||||
Balance as of beginning-of-year | 20 | 23 | ||
Deferrals | 0 | 0 | ||
Amortization | (2) | (2) | ||
Balance as of end-of-period | $ 18 | $ 21 | $ 18 | $ 21 |
DAC, VOBA, DSI, and DFEL - DFEL
DAC, VOBA, DSI, and DFEL - DFEL (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Changes in DFEL [Roll Forward] | |||||
Balance as of beginning-of-year | $ 5,923 | ||||
Amortization | $ (78) | $ (72) | (152) | $ (141) | |
Balance as of end-of-period | 6,327 | 6,327 | |||
Variable Annuities | |||||
Changes in DFEL [Roll Forward] | |||||
Balance as of beginning-of-year | 300 | 310 | |||
Deferrals | 9 | 10 | |||
Amortization | (13) | (15) | |||
Balance as of end-of-period | 296 | 305 | 296 | 305 | |
Less: ceded DFEL | 0 | 0 | 0 | 0 | |
Balance as of end-of-period, net of reinsurance | 296 | 305 | 296 | 305 | |
UL and Other | |||||
Changes in DFEL [Roll Forward] | |||||
Balance as of beginning-of-year | 5,579 | 4,766 | |||
Deferrals | 544 | 529 | |||
Amortization | (139) | (126) | |||
Balance as of end-of-period | 5,984 | 5,169 | 5,984 | 5,169 | |
Less: ceded DFEL | 2,346 | 30 | 2,346 | 30 | $ 2,300 |
Balance as of end-of-period, net of reinsurance | $ 3,638 | $ 5,139 | $ 3,638 | $ 5,139 |
Reinsurance - Narrative (Detail
Reinsurance - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2024 | Dec. 31, 2023 | |
Ceded Credit Risk [Line Items] | |||
Investments | $ 119,879 | $ 119,879 | $ 117,325 |
Other investments | 5,385 | 5,385 | 4,757 |
Deposit assets, net of allowance for credit losses | 28,762 | 28,762 | 21,056 |
LPINE | |||
Ceded Credit Risk [Line Items] | |||
Deposits assets | 6,800 | 6,800 | |
Investments | 11,000 | 11,000 | |
LPINE | Fixed Annuities | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance recoverables | 4,200 | 4,200 | |
Reinsurance recoverables on unpaid losses | 144 | 144 | |
LNBAR | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance recoverables | 14,400 | 14,400 | 13,200 |
Reinsurance recoverables on unpaid losses | 4,200 | 4,200 | 4,200 |
Reinsurance recoverable for unpaid claims, amortization | 40 | 83 | |
Other investments | 871 | 871 | 1,100 |
Trust funded to support reinsurance receivable | 13,300 | 13,300 | 13,000 |
Fortitude Re | Fixed Annuities | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance recoverables | 10,500 | 10,500 | 10,500 |
Reinsurance recoverables on unpaid losses | 2,600 | 2,600 | 2,700 |
Reinsurance recoverable for unpaid claims, amortization | 22 | 44 | |
Deposit assets, net of allowance for credit losses | $ 3,600 | $ 3,600 | $ 4,200 |
Reinsurance - Schedule of Asset
Reinsurance - Schedule of Assets in Support of Reserves (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Ceded Credit Risk [Line Items] | ||
Fixed maturity AFS securities | $ 81,037 | $ 82,300 |
Mortgage loans on real estate | 20,008 | 18,873 |
Accrued investment income | 1,036 | $ 982 |
LPINE | ||
Ceded Credit Risk [Line Items] | ||
Fixed maturity AFS securities | 9,349 | |
Mortgage loans on real estate | 1,531 | |
Accrued investment income | 94 | |
Total | $ 10,974 |
MRBs - Reconciles of MRBs Asset
MRBs - Reconciles of MRBs Assets and Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Dec. 31, 2022 |
Market Risk Benefit [Line Items] | ||||
Assets | $ 4,754 | $ 3,894 | ||
Liabilities | 1,275 | 1,716 | ||
Net (Assets) Liabilities | (3,479) | (2,178) | ||
Variable Annuities | ||||
Market Risk Benefit [Line Items] | ||||
Assets | 4,620 | 3,763 | ||
Liabilities | 1,152 | 1,583 | ||
Net (Assets) Liabilities | (3,468) | (2,180) | $ (2,296) | $ (662) |
Fixed Annuities | ||||
Market Risk Benefit [Line Items] | ||||
Assets | 95 | 96 | ||
Liabilities | 119 | 128 | ||
Net (Assets) Liabilities | 24 | 32 | (34) | (45) |
Retirement Plan Services | ||||
Market Risk Benefit [Line Items] | ||||
Assets | 39 | 35 | ||
Liabilities | 4 | 5 | ||
Net (Assets) Liabilities | $ (35) | $ (30) | $ (28) | $ (22) |
MRBs - Summary of Balances of C
MRBs - Summary of Balances of Changes in Net MRB (Assets) Liabilities (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Market Risk Benefit [Roll Forward] | ||
Balance as of beginning-of-year | $ (2,178) | |
Balance as of end-of-period | (3,479) | |
Variable Annuities | ||
Market Risk Benefit [Roll Forward] | ||
Balance as of beginning-of-year | (2,180) | $ (662) |
Balance as of beginning-of-year, before the effect of changes in non-performance risk | (881) | 1,511 |
Issuances | 5 | 3 |
Attributed fees collected | 760 | 755 |
Benefit payments | (21) | (35) |
Effect of changes in interest rates | (1,470) | 215 |
Effect of changes in equity markets | (1,469) | (2,205) |
Effect of changes in equity index volatility | (63) | (372) |
In-force updates and other changes in MRBs | 153 | 120 |
Balance as of end-of-period, before the effect of changes in non-performance risk | (2,986) | (8) |
Effect of cumulative changes in non-performance risk | (482) | (2,288) |
Balance as of end-of-period | (3,468) | (2,296) |
Less: ceded MRB assets (liabilities) | (2,143) | (1,035) |
Balance as of end-of-period, net of reinsurance | $ (1,325) | $ (1,261) |
Weighted-average age of policyholders (years) | 72 years | 72 years |
Net amount at risk | $ 2,135 | $ 4,783 |
Variable Annuities | Cumulative effect from adoption of new accounting standards | ||
Market Risk Benefit [Roll Forward] | ||
Balance as of beginning-of-year | (1,299) | (2,173) |
Fixed Annuities | ||
Market Risk Benefit [Roll Forward] | ||
Balance as of beginning-of-year | 32 | (45) |
Balance as of beginning-of-year, before the effect of changes in non-performance risk | 90 | (5) |
Issuances | 0 | 0 |
Attributed fees collected | 16 | 17 |
Benefit payments | 0 | 0 |
Effect of changes in interest rates | (27) | 3 |
Effect of changes in equity markets | (15) | (6) |
Effect of changes in equity index volatility | (4) | 2 |
In-force updates and other changes in MRBs | 2 | 2 |
Balance as of end-of-period, before the effect of changes in non-performance risk | 62 | 13 |
Effect of cumulative changes in non-performance risk | (38) | (47) |
Balance as of end-of-period | 24 | (34) |
Less: ceded MRB assets (liabilities) | 0 | 0 |
Balance as of end-of-period, net of reinsurance | $ 24 | $ (34) |
Weighted-average age of policyholders (years) | 69 years | 68 years |
Net amount at risk | $ 221 | $ 213 |
Fixed Annuities | Cumulative effect from adoption of new accounting standards | ||
Market Risk Benefit [Roll Forward] | ||
Balance as of beginning-of-year | (58) | (40) |
Retirement Plan Services | ||
Market Risk Benefit [Roll Forward] | ||
Balance as of beginning-of-year | (30) | (22) |
Balance as of beginning-of-year, before the effect of changes in non-performance risk | (26) | (20) |
Issuances | 0 | 0 |
Attributed fees collected | 3 | 3 |
Benefit payments | 0 | 0 |
Effect of changes in interest rates | (8) | 10 |
Effect of changes in equity markets | (5) | (9) |
Effect of changes in equity index volatility | 0 | (3) |
In-force updates and other changes in MRBs | 1 | 0 |
Balance as of end-of-period, before the effect of changes in non-performance risk | (35) | (19) |
Effect of cumulative changes in non-performance risk | 0 | (9) |
Balance as of end-of-period | (35) | (28) |
Less: ceded MRB assets (liabilities) | (8) | (4) |
Balance as of end-of-period, net of reinsurance | $ (27) | $ (24) |
Weighted-average age of policyholders (years) | 63 years | 63 years |
Net amount at risk | $ 3 | $ 6 |
Retirement Plan Services | Cumulative effect from adoption of new accounting standards | ||
Market Risk Benefit [Roll Forward] | ||
Balance as of beginning-of-year | $ (4) | $ (2) |
Separate Accounts - Schedule of
Separate Accounts - Schedule of Fair Value of Separate Account Assets (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Fair Value, Separate Account Investment [Line Items] | ||
Separate account assets | $ 165,199 | $ 158,257 |
Mutual funds and collective investment trusts | ||
Fair Value, Separate Account Investment [Line Items] | ||
Separate account assets | 164,537 | 157,578 |
Exchange-traded funds | ||
Fair Value, Separate Account Investment [Line Items] | ||
Separate account assets | 345 | 350 |
Fixed maturity AFS securities | ||
Fair Value, Separate Account Investment [Line Items] | ||
Separate account assets | 162 | 167 |
Cash and invested cash | ||
Fair Value, Separate Account Investment [Line Items] | ||
Separate account assets | 4 | 25 |
Other investments | ||
Fair Value, Separate Account Investment [Line Items] | ||
Separate account assets | $ 151 | $ 137 |
Separate Accounts - Summary of
Separate Accounts - Summary of Balances and Changes in Separate Account Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Dec. 31, 2022 |
Fair Value, Separate Account Investment [Line Items] | ||||
Separate account liabilities | $ 165,199 | $ 158,257 | ||
Protective | Reinsurance Agreement | ||||
Fair Value, Separate Account Investment [Line Items] | ||||
Separate account liabilities | 48 | 46 | ||
Variable Annuities | ||||
Fair Value, Separate Account Investment [Line Items] | ||||
Separate account liabilities | 116,770 | 113,356 | $ 110,998 | $ 105,573 |
UL and Other | ||||
Fair Value, Separate Account Investment [Line Items] | ||||
Separate account liabilities | 27,381 | 25,150 | 23,409 | 20,920 |
Retirement Plan Services | ||||
Fair Value, Separate Account Investment [Line Items] | ||||
Separate account liabilities | 20,993 | 19,699 | $ 18,789 | $ 16,996 |
Other Operations | ||||
Fair Value, Separate Account Investment [Line Items] | ||||
Separate account liabilities | $ 55 | $ 52 |
Separate Accounts - Schedule _2
Separate Accounts - Schedule of Reconciliation of Separate Account Liabilities (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Separate Account, Liability [Roll Forward] | ||
Balance as of beginning-of-year | $ 158,257 | |
Balance as of end-of-period | 165,199 | |
Variable Annuities | ||
Separate Account, Liability [Roll Forward] | ||
Balance as of beginning-of-year | 113,356 | $ 105,573 |
Gross deposits | 1,925 | 1,367 |
Withdrawals | (6,604) | (4,915) |
Policyholder assessments | (1,301) | (1,251) |
Change in market performance | 9,026 | 9,950 |
Net transfers from (to) general account | 368 | 274 |
Balance as of end-of-period | 116,770 | 110,998 |
Cash surrender value | 115,389 | 109,501 |
UL and Other | ||
Separate Account, Liability [Roll Forward] | ||
Balance as of beginning-of-year | 25,150 | 20,920 |
Gross deposits | 695 | 821 |
Withdrawals | (193) | (154) |
Policyholder assessments | (493) | (476) |
Change in market performance | 2,335 | 2,374 |
Net transfers from (to) general account | (113) | (76) |
Balance as of end-of-period | 27,381 | 23,409 |
Cash surrender value | 24,979 | 21,080 |
Retirement Plan Services | ||
Separate Account, Liability [Roll Forward] | ||
Balance as of beginning-of-year | 19,699 | 16,996 |
Gross deposits | 1,105 | 1,078 |
Withdrawals | (1,514) | (1,123) |
Policyholder assessments | (89) | (79) |
Change in market performance | 1,802 | 1,953 |
Net transfers from (to) general account | (10) | (36) |
Balance as of end-of-period | 20,993 | 18,789 |
Cash surrender value | $ 20,979 | $ 18,774 |
Policyholder Account Balances -
Policyholder Account Balances - Schedule of Policyholder Account Balances (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Dec. 31, 2022 |
Policyholder Account Balance [Line Items] | ||||
Policyholder account balances | $ 123,715 | $ 120,316 | ||
Variable Annuities | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balances | 32,853 | 29,141 | $ 26,257 | $ 22,184 |
Fixed Annuities | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balances | 25,814 | 25,330 | 23,786 | 23,338 |
UL and Other | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balances | 36,474 | 36,784 | 37,042 | 37,258 |
Retirement Plan Services | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balances | 23,598 | 23,784 | $ 24,430 | $ 25,138 |
Other | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balances | 4,976 | 5,277 | ||
Other | Reinsurance Agreement | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balances | $ 4,600 | $ 4,900 |
Policyholder Account Balances_2
Policyholder Account Balances - Summary of Balances and Changes in Policyholder Account Balances (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Policyholder Account Balance [Roll Forward] | ||||
Balance as of beginning-of-year | $ 120,316 | |||
Interest credited | $ 781 | $ 804 | 1,533 | $ 1,585 |
Balance as of end-of-period | 123,715 | 123,715 | ||
Variable Annuities | ||||
Policyholder Account Balance [Roll Forward] | ||||
Balance as of beginning-of-year | 29,141 | 22,184 | ||
Gross deposits | 2,102 | 2,437 | ||
Withdrawals | (413) | (328) | ||
Policyholder assessments | (1) | (1) | ||
Net transfers from (to) separate account | (146) | (198) | ||
Interest credited | 328 | 240 | ||
derivative instruments | 1,842 | 1,923 | ||
Balance as of end-of-period | $ 32,853 | $ 26,257 | $ 32,853 | $ 26,257 |
Weighted-average crediting rate | 2.10% | 2% | 2.10% | 2% |
Net amount at risk | $ 2,135 | $ 4,783 | $ 2,135 | $ 4,783 |
Cash surrender value | 31,650 | 25,146 | 31,650 | 25,146 |
Fixed Annuities | ||||
Policyholder Account Balance [Roll Forward] | ||||
Balance as of beginning-of-year | 25,330 | 23,338 | ||
Gross deposits | 2,646 | 1,919 | ||
Withdrawals | (2,600) | (1,920) | ||
Policyholder assessments | (31) | (28) | ||
Net transfers from (to) separate account | 0 | 0 | ||
Interest credited | 382 | 312 | ||
derivative instruments | 87 | 165 | ||
Balance as of end-of-period | $ 25,814 | $ 23,786 | $ 25,814 | $ 23,786 |
Weighted-average crediting rate | 3% | 2.60% | 3% | 2.60% |
Net amount at risk | $ 221 | $ 213 | $ 221 | $ 213 |
Cash surrender value | 24,738 | 22,889 | 24,738 | 22,889 |
UL and Other | ||||
Policyholder Account Balance [Roll Forward] | ||||
Balance as of beginning-of-year | 36,784 | 37,258 | ||
Gross deposits | 1,736 | 1,826 | ||
Withdrawals | (739) | (705) | ||
Policyholder assessments | (2,232) | (2,224) | ||
Net transfers from (to) separate account | 113 | 76 | ||
Interest credited | 726 | 735 | ||
derivative instruments | 86 | 76 | ||
Balance as of end-of-period | $ 36,474 | $ 37,042 | $ 36,474 | $ 37,042 |
Weighted-average crediting rate | 4% | 4% | 4% | 4% |
Net amount at risk | $ 298,237 | $ 301,018 | $ 298,237 | $ 301,018 |
Cash surrender value | 32,091 | 32,822 | 32,091 | 32,822 |
Retirement Plan Services | ||||
Policyholder Account Balance [Roll Forward] | ||||
Balance as of beginning-of-year | 23,784 | 25,138 | ||
Gross deposits | 1,636 | 1,317 | ||
Withdrawals | (2,275) | (2,094) | ||
Policyholder assessments | (7) | (7) | ||
Net transfers from (to) separate account | 120 | (259) | ||
Interest credited | 340 | 335 | ||
derivative instruments | 0 | 0 | ||
Balance as of end-of-period | $ 23,598 | $ 24,430 | $ 23,598 | $ 24,430 |
Weighted-average crediting rate | 2.90% | 2.70% | 2.90% | 2.70% |
Net amount at risk | $ 3 | $ 6 | $ 3 | $ 6 |
Cash surrender value | $ 23,570 | $ 24,425 | $ 23,570 | $ 24,425 |
Policyholder Account Balances_3
Policyholder Account Balances - Summary of Policyholder Account Balances by Ranges (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Dec. 31, 2022 |
Policyholder Account Balance [Line Items] | ||||
Policyholder account balances | $ 123,715 | $ 120,316 | ||
Variable Annuities | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balances | 32,853 | 29,141 | $ 26,257 | $ 22,184 |
Variable Annuities | At Guaranteed Minimum | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balances | 1,841 | 2,103 | ||
Variable Annuities | 1-50 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 | 0 | ||
Variable Annuities | Greater Than 150 Basis Points Above | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balances | $ 6 | $ 8 | ||
Variable Annuities | Up to 1.00% | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balance, guaranteed minimum credit rating | 1% | 1% | ||
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 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 | 10 | 12 | ||
Variable Annuities | 1.01% - 2.00% | At Guaranteed Minimum | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balances | 4 | 4 | ||
Variable Annuities | 1.01% - 2.00% | 1-50 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 | 0 | ||
Variable Annuities | 1.01% - 2.00% | Greater Than 150 Basis Points Above | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balances | 6 | 8 | ||
Variable Annuities | 2.01% - 3.00% | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balances | 539 | 619 | ||
Variable Annuities | 2.01% - 3.00% | At Guaranteed Minimum | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balances | 539 | 619 | ||
Variable Annuities | 2.01% - 3.00% | 1-50 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 | 1,289 | 1,470 | ||
Variable Annuities | 3.01% - 4.00% | At Guaranteed Minimum | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balances | 1,289 | 1,470 | ||
Variable Annuities | 3.01% - 4.00% | 1-50 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] | ||||
Policyholder account balance, guaranteed minimum credit rating | 4.01% | 4.01% | ||
Policyholder account balances | $ 9 | $ 10 | ||
Variable Annuities | 4.01% and above | At Guaranteed Minimum | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balances | 9 | 10 | ||
Variable Annuities | 4.01% and above | 1-50 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 | 31,006 | 24,146 | ||
Variable Annuities | Other | At Guaranteed Minimum | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balances | 0 | 0 | ||
Variable Annuities | Other | 1-50 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 | ||
Variable Annuities | Minimum | 1.01% - 2.00% | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balance, guaranteed minimum credit rating | 1.01% | 1.01% | ||
Variable Annuities | Minimum | 2.01% - 3.00% | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balance, guaranteed minimum credit rating | 2.01% | 2.01% | ||
Variable Annuities | Minimum | 3.01% - 4.00% | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balance, guaranteed minimum credit rating | 3.01% | 3.01% | ||
Variable Annuities | Maximum | 1.01% - 2.00% | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balance, guaranteed minimum credit rating | 2% | 2% | ||
Variable Annuities | Maximum | 2.01% - 3.00% | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balance, guaranteed minimum credit rating | 3% | 3% | ||
Variable Annuities | Maximum | 3.01% - 4.00% | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balance, guaranteed minimum credit rating | 4% | 4% | ||
Fixed Annuities | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balances | $ 25,814 | 25,330 | $ 23,786 | 23,338 |
Fixed Annuities | At Guaranteed Minimum | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balances | 3,822 | 4,434 | ||
Fixed Annuities | 1-50 Basis Points Above | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balances | 782 | 550 | ||
Fixed Annuities | 51-100 Basis Points Above | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balances | 878 | 715 | ||
Fixed Annuities | 101-150 Basis Points Above | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balances | 793 | 965 | ||
Fixed Annuities | Greater Than 150 Basis Points Above | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balances | $ 6,796 | $ 3,379 | ||
Fixed Annuities | Up to 1.00% | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balance, guaranteed minimum credit rating | 1% | 1% | ||
Policyholder account balances | $ 4,745 | $ 4,448 | ||
Fixed Annuities | Up to 1.00% | At Guaranteed Minimum | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balances | 615 | 756 | ||
Fixed Annuities | Up to 1.00% | 1-50 Basis Points Above | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balances | 609 | 414 | ||
Fixed Annuities | Up to 1.00% | 51-100 Basis Points Above | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balances | 594 | 515 | ||
Fixed Annuities | Up to 1.00% | 101-150 Basis Points Above | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balances | 463 | 467 | ||
Fixed Annuities | Up to 1.00% | Greater Than 150 Basis Points Above | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balances | 2,464 | 2,296 | ||
Fixed Annuities | 1.01% - 2.00% | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balances | 5,346 | 2,485 | ||
Fixed Annuities | 1.01% - 2.00% | At Guaranteed Minimum | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balances | 304 | 577 | ||
Fixed Annuities | 1.01% - 2.00% | 1-50 Basis Points Above | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balances | 133 | 133 | ||
Fixed Annuities | 1.01% - 2.00% | 51-100 Basis Points Above | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balances | 279 | 194 | ||
Fixed Annuities | 1.01% - 2.00% | 101-150 Basis Points Above | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balances | 329 | 498 | ||
Fixed Annuities | 1.01% - 2.00% | Greater Than 150 Basis Points Above | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balances | 4,301 | 1,083 | ||
Fixed Annuities | 2.01% - 3.00% | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balances | 1,771 | 1,755 | ||
Fixed Annuities | 2.01% - 3.00% | At Guaranteed Minimum | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balances | 1,694 | 1,746 | ||
Fixed Annuities | 2.01% - 3.00% | 1-50 Basis Points Above | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balances | 40 | 3 | ||
Fixed Annuities | 2.01% - 3.00% | 51-100 Basis Points Above | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balances | 5 | 6 | ||
Fixed Annuities | 2.01% - 3.00% | 101-150 Basis Points Above | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balances | 1 | 0 | ||
Fixed Annuities | 2.01% - 3.00% | Greater Than 150 Basis Points Above | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balances | 31 | 0 | ||
Fixed Annuities | 3.01% - 4.00% | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balances | 1,036 | 1,171 | ||
Fixed Annuities | 3.01% - 4.00% | At Guaranteed Minimum | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balances | 1,036 | 1,171 | ||
Fixed Annuities | 3.01% - 4.00% | 1-50 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] | ||||
Policyholder account balance, guaranteed minimum credit rating | 4.01% | 4.01% | ||
Policyholder account balances | $ 173 | $ 184 | ||
Fixed Annuities | 4.01% and above | At Guaranteed Minimum | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balances | 173 | 184 | ||
Fixed Annuities | 4.01% and above | 1-50 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 | 12,743 | 13,743 | ||
Fixed Annuities | Other | At Guaranteed Minimum | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balances | 0 | 0 | ||
Fixed Annuities | Other | 1-50 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] | ||||
Policyholder account balance, guaranteed minimum credit rating | 1.01% | 1.01% | ||
Fixed Annuities | Minimum | 2.01% - 3.00% | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balance, guaranteed minimum credit rating | 2.01% | 2.01% | ||
Fixed Annuities | Minimum | 3.01% - 4.00% | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balance, guaranteed minimum credit rating | 3.01% | 3.01% | ||
Fixed Annuities | Maximum | 1.01% - 2.00% | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balance, guaranteed minimum credit rating | 2% | 2% | ||
Fixed Annuities | Maximum | 2.01% - 3.00% | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balance, guaranteed minimum credit rating | 3% | 3% | ||
Fixed Annuities | Maximum | 3.01% - 4.00% | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balance, guaranteed minimum credit rating | 4% | 4% | ||
UL and Other | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balances | $ 36,474 | 36,784 | $ 37,042 | 37,258 |
UL and Other | At Guaranteed Minimum | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balances | 26,352 | 27,152 | ||
UL and Other | 1-50 Basis Points Above | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balances | 10 | 10 | ||
UL and Other | 51-100 Basis Points Above | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balances | 369 | 352 | ||
UL and Other | 101-150 Basis Points Above | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balances | 119 | 46 | ||
UL and Other | Greater Than 150 Basis Points Above | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balances | $ 3,228 | $ 3,647 | ||
UL and Other | Up to 1.00% | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balance, guaranteed minimum credit rating | 1% | 1% | ||
Policyholder account balances | $ 643 | $ 1,059 | ||
UL and Other | Up to 1.00% | At Guaranteed Minimum | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balances | 264 | 302 | ||
UL and Other | Up to 1.00% | 1-50 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 | 218 | 206 | ||
UL and Other | Up to 1.00% | 101-150 Basis Points Above | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balances | 119 | 46 | ||
UL and Other | Up to 1.00% | Greater Than 150 Basis Points Above | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balances | 42 | 505 | ||
UL and Other | 1.01% - 2.00% | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balances | 3,730 | 3,705 | ||
UL and Other | 1.01% - 2.00% | At Guaranteed Minimum | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balances | 544 | 557 | ||
UL and Other | 1.01% - 2.00% | 1-50 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 | 6 | ||
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 | 3,186 | 3,142 | ||
UL and Other | 2.01% - 3.00% | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balances | 6,957 | 7,366 | ||
UL and Other | 2.01% - 3.00% | At Guaranteed Minimum | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balances | 6,797 | 7,217 | ||
UL and Other | 2.01% - 3.00% | 1-50 Basis Points Above | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balances | 10 | 10 | ||
UL and Other | 2.01% - 3.00% | 51-100 Basis Points Above | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balances | 150 | 139 | ||
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 | 15,069 | 15,270 | ||
UL and Other | 3.01% - 4.00% | At Guaranteed Minimum | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balances | 15,068 | 15,269 | ||
UL and Other | 3.01% - 4.00% | 1-50 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] | ||||
Policyholder account balance, guaranteed minimum credit rating | 4.01% | 4.01% | ||
Policyholder account balances | $ 3,679 | $ 3,807 | ||
UL and Other | 4.01% and above | At Guaranteed Minimum | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balances | 3,679 | 3,807 | ||
UL and Other | 4.01% and above | 1-50 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 | 6,396 | 5,835 | ||
UL and Other | Other | At Guaranteed Minimum | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balances | 0 | 0 | ||
UL and Other | Other | 1-50 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] | ||||
Policyholder account balance, guaranteed minimum credit rating | 1.01% | 1.01% | ||
UL and Other | Minimum | 2.01% - 3.00% | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balance, guaranteed minimum credit rating | 2.01% | 2.01% | ||
UL and Other | Minimum | 3.01% - 4.00% | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balance, guaranteed minimum credit rating | 3.01% | 3.01% | ||
UL and Other | Maximum | 1.01% - 2.00% | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balance, guaranteed minimum credit rating | 2% | 2% | ||
UL and Other | Maximum | 2.01% - 3.00% | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balance, guaranteed minimum credit rating | 3% | 3% | ||
UL and Other | Maximum | 3.01% - 4.00% | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balance, guaranteed minimum credit rating | 4% | 4% | ||
Retirement Plan Services | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balances | $ 23,598 | $ 23,784 | $ 24,430 | $ 25,138 |
Retirement Plan Services | At Guaranteed Minimum | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balances | 9,677 | 10,880 | ||
Retirement Plan Services | 1-50 Basis Points Above | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balances | 2,232 | 3,628 | ||
Retirement Plan Services | 51-100 Basis Points Above | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balances | 2,115 | 4,276 | ||
Retirement Plan Services | 101-150 Basis Points Above | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balances | 4,843 | 3,224 | ||
Retirement Plan Services | Greater Than 150 Basis Points Above | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balances | $ 4,731 | $ 2,422 | ||
Retirement Plan Services | Up to 1.00% | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balance, guaranteed minimum credit rating | 1% | 1% | ||
Policyholder account balances | $ 9,913 | $ 9,554 | ||
Retirement Plan Services | Up to 1.00% | At Guaranteed Minimum | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balances | 489 | 601 | ||
Retirement Plan Services | Up to 1.00% | 1-50 Basis Points Above | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balances | 502 | 746 | ||
Retirement Plan Services | Up to 1.00% | 51-100 Basis Points Above | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balances | 727 | 3,092 | ||
Retirement Plan Services | Up to 1.00% | 101-150 Basis Points Above | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balances | 3,684 | 2,693 | ||
Retirement Plan Services | Up to 1.00% | Greater Than 150 Basis Points Above | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balances | 4,511 | 2,422 | ||
Retirement Plan Services | 1.01% - 2.00% | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balances | 4,913 | 5,232 | ||
Retirement Plan Services | 1.01% - 2.00% | At Guaranteed Minimum | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balances | 509 | 637 | ||
Retirement Plan Services | 1.01% - 2.00% | 1-50 Basis Points Above | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balances | 1,648 | 2,880 | ||
Retirement Plan Services | 1.01% - 2.00% | 51-100 Basis Points Above | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balances | 1,382 | 1,184 | ||
Retirement Plan Services | 1.01% - 2.00% | 101-150 Basis Points Above | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balances | 1,154 | 531 | ||
Retirement Plan Services | 1.01% - 2.00% | Greater Than 150 Basis Points Above | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balances | 220 | 0 | ||
Retirement Plan Services | 2.01% - 3.00% | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balances | 2,420 | 2,648 | ||
Retirement Plan Services | 2.01% - 3.00% | At Guaranteed Minimum | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balances | 2,394 | 2,647 | ||
Retirement Plan Services | 2.01% - 3.00% | 1-50 Basis Points Above | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balances | 25 | 1 | ||
Retirement Plan Services | 2.01% - 3.00% | 51-100 Basis Points Above | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balances | 1 | 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 | 4,734 | 5,350 | ||
Retirement Plan Services | 3.01% - 4.00% | At Guaranteed Minimum | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balances | 4,667 | 5,349 | ||
Retirement Plan Services | 3.01% - 4.00% | 1-50 Basis Points Above | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balances | 57 | 1 | ||
Retirement Plan Services | 3.01% - 4.00% | 51-100 Basis Points Above | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balances | 5 | 0 | ||
Retirement Plan Services | 3.01% - 4.00% | 101-150 Basis Points Above | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balances | 5 | 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 balance, guaranteed minimum credit rating | 4.01% | 4.01% | ||
Policyholder account balances | $ 1,618 | $ 1,646 | ||
Retirement Plan Services | 4.01% and above | At Guaranteed Minimum | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balances | 1,618 | 1,646 | ||
Retirement Plan Services | 4.01% and above | 1-50 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 | ||
Retirement Plan Services | Minimum | 1.01% - 2.00% | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balance, guaranteed minimum credit rating | 1.01% | 1.01% | ||
Retirement Plan Services | Minimum | 2.01% - 3.00% | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balance, guaranteed minimum credit rating | 2.01% | 2.01% | ||
Retirement Plan Services | Minimum | 3.01% - 4.00% | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balance, guaranteed minimum credit rating | 3.01% | 3.01% | ||
Retirement Plan Services | Maximum | 1.01% - 2.00% | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balance, guaranteed minimum credit rating | 2% | 2% | ||
Retirement Plan Services | Maximum | 2.01% - 3.00% | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balance, guaranteed minimum credit rating | 3% | 3% | ||
Retirement Plan Services | Maximum | 3.01% - 4.00% | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balance, guaranteed minimum credit rating | 4% | 4% |
Future Contract Benefits - Summ
Future Contract Benefits - Summary of Reconciliation of Future Contract Benefits (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2023 |
Liability for Future Policy Benefit, Activity [Line Items] | |||
Future contract benefits | $ 38,889 | $ 40,174 | |
Other | |||
Liability for Future Policy Benefit, Activity [Line Items] | |||
Future contract benefits | 3,289 | 3,343 | |
Payout Annuities | |||
Liability for Future Policy Benefit, Activity [Line Items] | |||
Future contract benefits | 2,001 | 2,084 | $ 2,047 |
Traditional Life | |||
Liability for Future Policy Benefit, Activity [Line Items] | |||
Future contract benefits | 3,514 | 3,553 | $ 3,372 |
Group Protection (1) | |||
Liability for Future Policy Benefit, Activity [Line Items] | |||
Future contract benefits | 5,569 | 5,689 | |
UL and Other | |||
Liability for Future Policy Benefit, Activity [Line Items] | |||
Future contract benefits | 15,236 | 15,752 | |
Other Operations | |||
Liability for Future Policy Benefit, Activity [Line Items] | |||
Future contract benefits | 9,280 | 9,753 | |
Other Operations | Protective | |||
Liability for Future Policy Benefit, Activity [Line Items] | |||
Future contract benefits | 5,400 | 5,600 | |
Other Operations | Swiss Re | |||
Liability for Future Policy Benefit, Activity [Line Items] | |||
Future contract benefits | $ 2,000 | $ 2,100 |
Future Contract Benefits - Su_2
Future Contract Benefits - Summary of Changes in Present Values of Expected Net Premiums and LFPB (Details) - USD ($) $ in Millions | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Present Value of Expected LFPB | ||||
Net balance as of end-of-period | $ 38,889 | $ 40,174 | ||
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 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-period | 0 | 0 | ||
Present Value of Expected LFPB | ||||
Balance as of beginning-of-year | 2,084 | 2,003 | ||
Beginning balance of original discount rate | 2,271 | 2,266 | ||
Effect of actual variances from expected experience | 3 | (2) | ||
Adjusted balance as of beginning-of-year | 2,274 | 2,264 | ||
Issuances | 39 | 69 | ||
Interest accrual | 43 | 43 | ||
Benefit payments | (98) | (93) | ||
Ending balance at original discount rate | 2,258 | 2,283 | ||
Effect of cumulative changes in discount rate assumptions | (257) | (236) | ||
Balance as of end-of-period | 2,001 | 2,047 | ||
Net balance as of end-of-period | 2,001 | 2,047 | 2,084 | |
Less: reinsurance recoverables (2) | 1,527 | 10 | ||
Net balance as of end-of-period, net of reinsurance | $ 474 | $ 2,037 | ||
Weighted-average duration of future policyholder benefit liability (years) | 9 years | 9 years | ||
Deferred profit liability | $ 61 | $ 53 | ||
Payout Annuities | Cumulative effect from adoption of new accounting standards | ||||
Present Value of Expected Net Premiums | ||||
Balance as of beginning-of-year | 0 | 0 | ||
Present Value of Expected LFPB | ||||
Balance as of beginning-of-year | (187) | (263) | ||
Traditional Life | ||||
Present Value of Expected Net Premiums | ||||
Balance as of beginning-of-year | 6,084 | 5,896 | ||
Beginning balance at original discount rate | 6,236 | 6,480 | ||
Effect of actual variances from expected experience | (10) | (257) | ||
Adjusted balance as of beginning-of-year | 6,226 | 6,223 | ||
Issuances | 206 | 330 | ||
Interest accrual | 122 | 116 | ||
Net premiums collected | (396) | (395) | ||
Flooring impact of LFPB | 2 | 3 | ||
Ending balance at original discount rate | 6,160 | 6,277 | ||
Effect of cumulative changes in discount rate assumptions | (322) | (329) | ||
Balance as of end-of-period | 5,838 | 5,948 | ||
Present Value of Expected LFPB | ||||
Balance as of beginning-of-year | 9,637 | 9,086 | ||
Beginning balance of original discount rate | 9,839 | 9,879 | ||
Effect of actual variances from expected experience | (15) | $ (280) | ||
Adjusted balance as of beginning-of-year | 9,824 | 9,599 | ||
Issuances | 206 | 330 | ||
Interest accrual | 190 | 179 | ||
Benefit payments | (357) | (309) | ||
Ending balance at original discount rate | 9,863 | 9,799 | ||
Effect of cumulative changes in discount rate assumptions | (511) | (479) | ||
Balance as of end-of-period | 9,352 | 9,320 | ||
Net balance as of end-of-period | 3,514 | 3,372 | $ 3,553 | |
Less: reinsurance recoverables (2) | 232 | 263 | ||
Net balance as of end-of-period, net of reinsurance | $ 3,282 | $ 3,109 | ||
Weighted-average duration of future policyholder benefit liability (years) | 10 years | 10 years | ||
Traditional Life | Cumulative effect from adoption of new accounting standards | ||||
Present Value of Expected Net Premiums | ||||
Balance as of beginning-of-year | $ (152) | $ (584) | ||
Present Value of Expected LFPB | ||||
Balance as of beginning-of-year | $ (202) | $ (793) |
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 | Jun. 30, 2024 | Jun. 30, 2023 |
Payout Annuities | ||
Undiscounted | ||
Expected future gross premiums | $ 0 | $ 0 |
Expected future benefit payments | 3,435 | 3,500 |
Discounted | ||
Expected future gross premiums | 0 | 0 |
Expected future benefit payments | 2,001 | 2,047 |
Traditional Life | ||
Undiscounted | ||
Expected future gross premiums | 13,265 | 13,309 |
Expected future benefit payments | 14,115 | 14,013 |
Discounted | ||
Expected future gross premiums | 8,980 | 9,050 |
Expected future benefit payments | $ 9,352 | $ 9,320 |
Future Contract Benefits - Su_4
Future Contract Benefits - Summary of Gross Premiums and Interest Accretion (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Payout Annuities | ||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Gross premiums | $ 24 | $ 44 | $ 45 | $ 71 |
Interest accretion | 22 | 21 | 43 | 43 |
Traditional Life | ||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Gross premiums | 301 | 297 | 599 | 592 |
Interest accretion | $ 34 | $ 32 | $ 67 | $ 63 |
Future Contract Benefits - Su_5
Future Contract Benefits - Summary of Weighted-Average Interest Rates (Details) | Jun. 30, 2024 | Jun. 30, 2023 |
Payout Annuities | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Interest accretion rate | 4% | 3.90% |
Current discount rate | 5.40% | 5.20% |
Traditional Life | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Interest accretion rate | 4.90% | 5% |
Current discount rate | 5.20% | 5.10% |
Future Contract Benefits - Su_6
Future Contract Benefits - Summary of Changes in Present Values of LFPB (Group Protection) (Details) - Group Protection (1) - USD ($) $ in Millions | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Present Value of Expected LFPB | ||||
Balance as of beginning-of-year | $ 5,689 | $ 5,462 | ||
Less: Effect of cumulative changes in discount rate assumptions | $ (490) | $ (597) | ||
Beginning balance of original discount rate | 6,179 | 6,059 | ||
Effect of actual variances from expected experience | $ (191) | $ (220) | ||
Adjusted balance as of beginning-of-year | 5,988 | 5,839 | ||
New incidence | 838 | 882 | ||
Interest | 93 | 83 | ||
Benefit payments | (757) | (734) | ||
Ending balance at original discount rate | 6,162 | 6,070 | ||
Effect of cumulative changes in discount rate assumptions | (593) | (577) | ||
Balance as of end-of-period | 5,569 | 5,493 | ||
Less: reinsurance recoverables (2) | 4,284 | 121 | ||
Net balance as of end-of-period, net of reinsurance | $ 1,285 | $ 5,372 | ||
Weighted-average duration of future policyholder benefit liability (years) | 5 years | 4 years |
Future Contract Benefits - Su_7
Future Contract Benefits - Summary of Discounted and Undiscounted Expected Future Benefit Payments (Group Protection) (Details) - Group Protection (1) - USD ($) $ in Millions | Jun. 30, 2024 | Jun. 30, 2023 |
Undiscounted | ||
Expected future benefit payments | $ 7,290 | $ 7,111 |
Discounted | ||
Expected future benefit payments | $ 5,569 | $ 5,493 |
Future Contract Benefit - Summa
Future Contract Benefit - Summary of Gross Premiums and Interest Accretion (Group Protection) (Details) - Group Protection (1) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Gross premiums | $ 893 | $ 885 | $ 1,789 | $ 1,770 |
Interest accretion | $ 45 | $ 41 | $ 93 | $ 83 |
Future Contract Benefit - Sum_2
Future Contract Benefit - Summary of Weighted-Average Interest Rates (Group Protection) (Details) - Group Protection (1) | Jun. 30, 2024 | Jun. 30, 2023 |
Liability for Future Policy Benefit, Activity [Line Items] | ||
Interest accretion rate | 3.20% | 2.90% |
Current discount rate | 5.20% | 5.10% |
Future Contract Benefits - Su_8
Future Contract Benefits - Summary of Changes in Present Values of LFPB (UL and Other) (Details) - UL and Other - USD ($) $ in Millions | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Present Value of Expected LFPB | ||||
Balance as of beginning-of-year | $ 15,752 | $ 14,777 | ||
Effect of cumulative changes in discount rate assumptions | (2,032) | (1,769) | $ (853) | $ (905) |
Balance as of beginning-of-year, excluding shadow balance in AOCI | 16,605 | 15,682 | ||
Effect of actual variances from expected experience | $ 136 | $ 6 | ||
Adjusted balance as of beginning-of-year | 16,741 | 15,688 | ||
Interest accrual | 410 | 377 | ||
Net assessments collected | 638 | 190 | ||
Benefit payments | (521) | (360) | ||
Balance as of end-of-year, excluding shadow balance in AOCI | 17,268 | 15,895 | ||
Balance as of end-of-period | 15,236 | 14,126 | ||
Less: reinsurance recoverables (2) | 10,040 | 2,041 | ||
Net balance as of end-of-period, net of reinsurance | $ 5,196 | $ 12,085 | ||
Weighted-average duration of future policyholder benefit liability (years) | 16 years | 18 years |
Future Contract Benefit - Sum_3
Future Contract Benefit - Summary of Gross Premiums and Interest Accretion (UL and Other) (Details) - UL and Other - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Gross premiums | $ 773 | $ 542 | $ 1,539 | $ 1,457 |
Interest accretion | $ 206 | $ 190 | $ 410 | $ 377 |
Future Contract Benefit - Sum_4
Future Contract Benefit - Summary of Weighted-Average Interest Rates (UL and Other) (Details) | Jun. 30, 2024 | Jun. 30, 2023 |
UL and Other | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Interest accretion rate | 5.40% | 4.90% |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Carrying and Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
ASSETS | ||
Fixed maturity AFS securities | $ 81,037 | $ 82,300 |
Trading securities | 2,181 | 2,321 |
Equity securities | 295 | 306 |
Mortgage loans on real estate | 20,008 | 18,873 |
Derivative investments | 8,472 | 6,305 |
Other investments | 5,385 | 4,757 |
Market risk benefit assets | 4,754 | 3,894 |
Policyholder account balances: | ||
MRB liabilities | $ (1,275) | $ (1,716) |
Other liabilities: | ||
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Other liabilities | Other liabilities |
Carrying Value | ||
ASSETS | ||
Trading securities | $ 2,181 | $ 2,321 |
Equity securities | 295 | 306 |
Mortgage loans on real estate | 20,008 | 18,873 |
Derivative investments | 8,472 | 6,305 |
Other investments | 5,385 | 4,757 |
Cash and invested cash | 4,662 | 3,193 |
Market risk benefit assets | 4,754 | 3,894 |
Other assets: | ||
LPR ceded derivative | 202 | 206 |
Separate account assets | 165,199 | 158,257 |
Policyholder account balances: | ||
Funds withheld reinsurance liabilities – reinsurance-related embedded derivatives | 585 | 493 |
MRB liabilities | (1,275) | (1,716) |
Short-term debt | (656) | (840) |
Long-term debt | (2,177) | (2,195) |
Fair Value | ||
ASSETS | ||
Trading securities | 2,181 | 2,321 |
Equity securities | 295 | 306 |
Mortgage loans on real estate | 17,763 | 17,330 |
Derivative investments | 8,472 | 6,305 |
Other investments | 5,385 | 4,757 |
Cash and invested cash | 4,662 | 3,193 |
Market risk benefit assets | 4,754 | 3,894 |
Other assets: | ||
LPR ceded derivative | 202 | 206 |
Separate account assets | 165,199 | 158,257 |
Policyholder account balances: | ||
Funds withheld reinsurance liabilities – reinsurance-related embedded derivatives | 585 | 493 |
MRB liabilities | (1,275) | (1,716) |
Short-term debt | (656) | (841) |
Long-term debt | (2,125) | (2,125) |
Other assets | Carrying Value | ||
Other assets: | ||
Ceded MRBs | 39 | 274 |
Indexed annuity ceded embedded derivatives | 1,756 | 940 |
Other assets | Fair Value | ||
Other assets: | ||
Ceded MRBs | 39 | 274 |
Indexed annuity ceded embedded derivatives | 1,756 | 940 |
Policyholder account balances | Carrying Value | ||
Policyholder account balances: | ||
Account balances of certain investment contracts | (45,072) | (44,615) |
RILA, fixed annuity and IUL contracts | (11,417) | (9,077) |
Policyholder account balances | Fair Value | ||
Policyholder account balances: | ||
Account balances of certain investment contracts | (34,223) | (34,020) |
RILA, fixed annuity and IUL contracts | (11,417) | (9,077) |
Other liabilities | Carrying Value | ||
Other liabilities: | ||
Ceded MRBs | (2,189) | (1,149) |
Derivative liabilities | (200) | (356) |
Remaining guaranteed interest and similar contracts | (367) | (411) |
Other liabilities | Fair Value | ||
Other liabilities: | ||
Ceded MRBs | (2,189) | (1,149) |
Derivative liabilities | (200) | (356) |
Remaining guaranteed interest and similar contracts | (367) | (411) |
Fixed maturity AFS securities | Carrying Value | ||
ASSETS | ||
Fixed maturity AFS securities | 81,037 | 82,300 |
Fixed maturity AFS securities | Fair Value | ||
ASSETS | ||
Fixed maturity AFS securities | $ 81,037 | $ 82,300 |
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 | Jun. 30, 2024 | Dec. 31, 2023 |
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value | $ 258 | $ 288 |
Commercial | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value | 258 | 288 |
Aggregate contractual principal | $ 292 | $ 326 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Narrative (Details) - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | $ 276,139,000,000 | $ 263,539,000,000 |
Liabilities | 21,550,000,000 | 16,827,000,000 |
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 | Jun. 30, 2024 | Dec. 31, 2023 |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | $ 276,139 | $ 263,539 |
Liabilities | (21,550) | (16,827) |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 814 | 822 |
Liabilities | 0 | 0 |
Significant Observable Inputs (Level 2) | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 258,314 | 248,140 |
Liabilities | (5,821) | (4,299) |
Significant Unobservable Inputs (Level 3) | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 17,011 | 14,577 |
Liabilities | (15,729) | (12,528) |
Corporate bonds | Fixed maturity AFS securities | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 62,023 | 63,866 |
Corporate bonds | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fixed maturity AFS securities | ||
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 | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 55,206 | 57,397 |
Corporate bonds | Significant Unobservable Inputs (Level 3) | Fixed maturity AFS securities | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 6,817 | 6,469 |
U.S. government bonds | Fixed maturity AFS securities | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 388 | 393 |
U.S. government bonds | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fixed maturity AFS securities | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 367 | 373 |
U.S. government bonds | Significant Observable Inputs (Level 2) | Fixed maturity AFS securities | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 21 | 20 |
U.S. government bonds | Significant Unobservable Inputs (Level 3) | Fixed maturity AFS securities | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 0 | 0 |
State and municipal bonds | Fixed maturity AFS securities | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 2,240 | 2,542 |
State and municipal bonds | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fixed maturity AFS securities | ||
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 | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 2,240 | 2,537 |
State and municipal bonds | Significant Unobservable Inputs (Level 3) | Fixed maturity AFS securities | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 0 | 5 |
Foreign government bonds | Fixed maturity AFS securities | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 256 | 278 |
Foreign government bonds | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fixed maturity AFS securities | ||
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 | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 256 | 278 |
Foreign government bonds | Significant Unobservable Inputs (Level 3) | Fixed maturity AFS securities | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 0 | 0 |
RMBS | Fixed maturity AFS securities | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 1,554 | 1,602 |
RMBS | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fixed maturity AFS securities | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 0 | 0 |
RMBS | Significant Observable Inputs (Level 2) | Fixed maturity AFS securities | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 1,536 | 1,589 |
RMBS | Significant Unobservable Inputs (Level 3) | Fixed maturity AFS securities | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 18 | 13 |
CMBS | Fixed maturity AFS securities | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 1,402 | 1,344 |
CMBS | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fixed maturity AFS securities | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 0 | 0 |
CMBS | Significant Observable Inputs (Level 2) | Fixed maturity AFS securities | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 1,380 | 1,336 |
CMBS | Significant Unobservable Inputs (Level 3) | Fixed maturity AFS securities | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 22 | 8 |
ABS | Fixed maturity AFS securities | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 12,947 | 12,043 |
ABS | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fixed maturity AFS securities | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 0 | 0 |
ABS | Significant Observable Inputs (Level 2) | Fixed maturity AFS securities | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 10,950 | 10,559 |
ABS | Significant Unobservable Inputs (Level 3) | Fixed maturity AFS securities | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 1,997 | 1,484 |
Hybrid and redeemable preferred securities | Fixed maturity AFS securities | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 227 | 232 |
Hybrid and redeemable preferred securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fixed maturity AFS securities | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 48 | 46 |
Hybrid and redeemable preferred securities | Significant Observable Inputs (Level 2) | Fixed maturity AFS securities | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 129 | 138 |
Hybrid and redeemable preferred securities | Significant Unobservable Inputs (Level 3) | Fixed maturity AFS securities | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 50 | 48 |
Trading securities | Fixed maturity AFS securities | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 2,181 | 2,321 |
Trading securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fixed maturity AFS securities | ||
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 | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 1,908 | 2,037 |
Trading securities | Significant Unobservable Inputs (Level 3) | Fixed maturity AFS securities | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 273 | 284 |
Equity securities | Fixed maturity AFS securities | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 295 | 306 |
Equity securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fixed maturity AFS securities | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 2 | 1 |
Equity securities | Significant Observable Inputs (Level 2) | Fixed maturity AFS securities | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 255 | 263 |
Equity securities | Significant Unobservable Inputs (Level 3) | Fixed maturity AFS securities | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 38 | 42 |
Mortgage loans on real estate | Fixed maturity AFS securities | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 258 | 288 |
Mortgage loans on real estate | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fixed maturity AFS securities | ||
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 | ||
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 | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 258 | 288 |
Derivative investments | Fixed maturity AFS securities | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 15,526 | 11,327 |
Derivative investments | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fixed maturity AFS securities | ||
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 | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 14,739 | 10,705 |
Derivative investments | Significant Unobservable Inputs (Level 3) | Fixed maturity AFS securities | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 787 | 622 |
Other investments – short-term investments | Fixed maturity AFS securities | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 230 | 233 |
Other investments – short-term investments | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fixed maturity AFS securities | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 0 | 0 |
Other investments – short-term investments | Significant Observable Inputs (Level 2) | Fixed maturity AFS securities | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 230 | 233 |
Other investments – short-term investments | Significant Unobservable Inputs (Level 3) | Fixed maturity AFS securities | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 0 | 0 |
Cash and invested cash | Fixed maturity AFS securities | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 4,662 | 3,193 |
Cash and invested cash | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fixed maturity AFS securities | ||
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 | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 4,662 | 3,193 |
Cash and invested cash | Significant Unobservable Inputs (Level 3) | Fixed maturity AFS securities | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 0 | 0 |
MRB assets | Fixed maturity AFS securities | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 4,754 | 3,894 |
MRB assets | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fixed maturity AFS securities | ||
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 | ||
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 | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 4,754 | 3,894 |
Ceded MRBs | Other assets | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 39 | 274 |
Ceded MRBs | Other liabilities | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Liabilities | (2,189) | (1,149) |
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 | 39 | 274 |
Ceded MRBs | Significant Unobservable Inputs (Level 3) | Other liabilities | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Liabilities | (2,189) | (1,149) |
Indexed annuity ceded embedded derivatives | Other assets | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 1,756 | 940 |
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 | 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 Unobservable Inputs (Level 3) | Other assets | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 1,756 | 940 |
LPR ceded derivative | Other assets | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 202 | 206 |
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 | 202 | 206 |
Separate account assets | Other assets | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 165,199 | 158,257 |
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 | 397 | 402 |
Separate account assets | Significant Observable Inputs (Level 2) | Other assets | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 164,802 | 157,855 |
Separate account assets | Significant Unobservable Inputs (Level 3) | Other assets | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets | 0 | 0 |
RILA, fixed indexed annuity and IUL contracts | Policyholder account balances | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Liabilities | (11,417) | (9,077) |
RILA, fixed indexed annuity and IUL contracts | 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 |
RILA, fixed indexed annuity and IUL contracts | Significant Observable Inputs (Level 2) | Policyholder account balances | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Liabilities | 0 | 0 |
RILA, fixed indexed annuity and IUL contracts | Significant Unobservable Inputs (Level 3) | Policyholder account balances | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Liabilities | (11,417) | (9,077) |
Reinsurance-related embedded derivatives | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Liabilities | 585 | 493 |
Reinsurance-related embedded derivatives | 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 embedded derivatives | Significant Observable Inputs (Level 2) | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Liabilities | 638 | 493 |
Reinsurance-related embedded derivatives | Significant Unobservable Inputs (Level 3) | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Liabilities | (53) | 0 |
MRB liabilities | Policyholder account balances | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Liabilities | (1,275) | (1,716) |
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 | (1,275) | (1,716) |
Derivative liabilities | Other liabilities | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Liabilities | (7,254) | (5,378) |
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 | (6,459) | (4,792) |
Derivative liabilities | Significant Unobservable Inputs (Level 3) | Other liabilities | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Liabilities | $ (795) | $ (586) |
Fair Value of Financial Instr_7
Fair Value of Financial Instruments - Fair Value Measured on a Recurring Basis Reconciliation (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Abstract] | ||||
Beginning Fair Value | $ (2,839) | $ 3,259 | $ (129) | $ 3,859 |
Items Included in Net Income | (306) | (2,414) | (3,296) | (3,654) |
Gains (Losses) in OCI and Other | (2) | (1) | (9) | 23 |
Issuances, Sales, Maturities, Settlements, Calls, Net | 1,109 | (215) | 1,469 | 567 |
Transfers Into or Out of Level 3, Net | (159) | 25 | (232) | (141) |
Ending Fair Value | $ (2,197) | $ 654 | $ (2,197) | $ 654 |
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) | Net income (loss) |
Fair Value, Asset, Recurring Basis, Unobservable Input Reconciliation, Asset, Gain (Loss), Statement of Other Comprehensive Income or Comprehensive Income [Extensible Enumeration] | Derivative investments | Derivative investments | Derivative investments | Derivative investments |
Corporate bonds | Fixed maturity AFS securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Abstract] | ||||
Beginning Fair Value | $ 6,747 | $ 6,219 | $ 6,469 | $ 5,186 |
Items Included in Net Income | (1) | (12) | 0 | (12) |
Gains (Losses) in OCI and Other | (8) | 3 | (16) | 15 |
Issuances, Sales, Maturities, Settlements, Calls, Net | 171 | (57) | 481 | 949 |
Transfers Into or Out of Level 3, Net | (92) | 24 | (117) | 39 |
Ending Fair Value | 6,817 | 6,177 | 6,817 | 6,177 |
State and municipal bonds | Fixed maturity AFS securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Abstract] | ||||
Beginning Fair Value | 36 | 5 | 35 | |
Items Included in Net Income | (2) | 0 | (2) | |
Gains (Losses) in OCI and Other | 3 | 0 | 4 | |
Issuances, Sales, Maturities, Settlements, Calls, Net | (1) | 0 | (1) | |
Transfers Into or Out of Level 3, Net | 0 | (5) | 0 | |
Ending Fair Value | 0 | 36 | 0 | 36 |
RMBS | Fixed maturity AFS securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Abstract] | ||||
Beginning Fair Value | 12 | 1 | 13 | 1 |
Items Included in Net Income | 0 | 0 | 0 | 0 |
Gains (Losses) in OCI and Other | 0 | 0 | (1) | 0 |
Issuances, Sales, Maturities, Settlements, Calls, Net | 6 | 5 | 6 | 5 |
Transfers Into or Out of Level 3, Net | 0 | 0 | 0 | 0 |
Ending Fair Value | 18 | 6 | 18 | 6 |
CMBS | Fixed maturity AFS securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Abstract] | ||||
Beginning Fair Value | 8 | 0 | 8 | 0 |
Items Included in Net Income | 0 | 0 | 0 | 0 |
Gains (Losses) in OCI and Other | 0 | 0 | 0 | 0 |
Issuances, Sales, Maturities, Settlements, Calls, Net | 14 | (4) | 14 | (4) |
Transfers Into or Out of Level 3, Net | 0 | 4 | 0 | 4 |
Ending Fair Value | 22 | 0 | 22 | 0 |
ABS | Fixed maturity AFS securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Abstract] | ||||
Beginning Fair Value | 1,692 | 1,100 | 1,484 | 1,117 |
Items Included in Net Income | 0 | 0 | 1 | 0 |
Gains (Losses) in OCI and Other | 7 | (6) | 5 | 2 |
Issuances, Sales, Maturities, Settlements, Calls, Net | 365 | 152 | 566 | 320 |
Transfers Into or Out of Level 3, Net | (67) | (38) | (59) | (231) |
Ending Fair Value | 1,997 | 1,208 | 1,997 | 1,208 |
Hybrid and redeemable preferred securities | Fixed maturity AFS securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Abstract] | ||||
Beginning Fair Value | 51 | 59 | 48 | 49 |
Items Included in Net Income | 0 | 0 | 0 | 0 |
Gains (Losses) in OCI and Other | (1) | (3) | 2 | (3) |
Issuances, Sales, Maturities, Settlements, Calls, Net | 0 | 0 | 0 | (2) |
Transfers Into or Out of Level 3, Net | 0 | 4 | 0 | 16 |
Ending Fair Value | 50 | 60 | 50 | 60 |
Trading securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Abstract] | ||||
Beginning Fair Value | 271 | 458 | 284 | 581 |
Items Included in Net Income | 0 | (2) | 0 | 2 |
Gains (Losses) in OCI and Other | 0 | 0 | 0 | 0 |
Issuances, Sales, Maturities, Settlements, Calls, Net | 2 | (105) | (11) | (232) |
Transfers Into or Out of Level 3, Net | 0 | 0 | 0 | 0 |
Ending Fair Value | 273 | 351 | 273 | 351 |
Equity securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Abstract] | ||||
Beginning Fair Value | 39 | 137 | 42 | 153 |
Items Included in Net Income | 0 | (13) | (3) | (29) |
Gains (Losses) in OCI and Other | 0 | 0 | 0 | 0 |
Issuances, Sales, Maturities, Settlements, Calls, Net | (1) | 1 | (1) | 1 |
Transfers Into or Out of Level 3, Net | 0 | 0 | 0 | 0 |
Ending Fair Value | 38 | 125 | 38 | 125 |
Mortgage loans on real estate | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Abstract] | ||||
Beginning Fair Value | 289 | 490 | 288 | 487 |
Items Included in Net Income | 4 | (4) | 4 | (2) |
Gains (Losses) in OCI and Other | 0 | 2 | 1 | 5 |
Issuances, Sales, Maturities, Settlements, Calls, Net | (35) | (84) | (35) | (86) |
Transfers Into or Out of Level 3, Net | 0 | 0 | 0 | 0 |
Ending Fair Value | 258 | 404 | 258 | 404 |
Derivative investments | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Abstract] | ||||
Beginning Fair Value | 1 | 1 | 36 | 2 |
Items Included in Net Income | (6) | (1) | 5 | (2) |
Gains (Losses) in OCI and Other | 0 | 0 | 0 | 0 |
Issuances, Sales, Maturities, Settlements, Calls, Net | (3) | 0 | 2 | 0 |
Transfers Into or Out of Level 3, Net | 0 | 31 | (51) | 31 |
Ending Fair Value | (8) | 31 | (8) | 31 |
Ceded MRBs | Other assets | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Abstract] | ||||
Beginning Fair Value | 59 | 699 | 274 | 540 |
Items Included in Net Income | (20) | (298) | (235) | (139) |
Gains (Losses) in OCI and Other | 0 | 0 | 0 | 0 |
Issuances, Sales, Maturities, Settlements, Calls, Net | 0 | 0 | 0 | 0 |
Transfers Into or Out of Level 3, Net | 0 | 0 | 0 | 0 |
Ending Fair Value | 39 | 401 | 39 | 401 |
Ceded MRBs | Other liabilities | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Abstract] | ||||
Beginning Fair Value | (2,261) | (909) | (1,149) | (246) |
Items Included in Net Income | 72 | (531) | (1,040) | (1,194) |
Gains (Losses) in OCI and Other | 0 | 0 | 0 | 0 |
Issuances, Sales, Maturities, Settlements, Calls, Net | 0 | 0 | 0 | 0 |
Transfers Into or Out of Level 3, Net | 0 | 0 | 0 | 0 |
Ending Fair Value | (2,189) | (1,440) | (2,189) | (1,440) |
Indexed annuity ceded embedded derivatives | Other assets | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Abstract] | ||||
Beginning Fair Value | 973 | 565 | 940 | 525 |
Items Included in Net Income | 11 | 4 | 44 | 11 |
Gains (Losses) in OCI and Other | 0 | 0 | 0 | 0 |
Issuances, Sales, Maturities, Settlements, Calls, Net | 772 | 34 | 772 | 67 |
Transfers Into or Out of Level 3, Net | 0 | 0 | 0 | 0 |
Ending Fair Value | 1,756 | 603 | 1,756 | 603 |
LPR ceded derivative | Other assets | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Abstract] | ||||
Beginning Fair Value | 201 | 199 | 206 | 212 |
Items Included in Net Income | 1 | 3 | (4) | (10) |
Gains (Losses) in OCI and Other | 0 | 0 | 0 | 0 |
Issuances, Sales, Maturities, Settlements, Calls, Net | 0 | 0 | 0 | 0 |
Transfers Into or Out of Level 3, Net | 0 | 0 | 0 | 0 |
Ending Fair Value | 202 | 202 | 202 | 202 |
RILA, fixed indexed annuity and IUL contracts | Policyholder account balances | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Abstract] | ||||
Beginning Fair Value | (10,896) | (5,796) | (9,077) | (4,783) |
Items Included in Net Income | (339) | (1,558) | (2,015) | (2,277) |
Gains (Losses) in OCI and Other | 0 | 0 | 0 | 0 |
Issuances, Sales, Maturities, Settlements, Calls, Net | (182) | (156) | (325) | (450) |
Transfers Into or Out of Level 3, Net | 0 | 0 | 0 | 0 |
Ending Fair Value | (11,417) | $ (7,510) | (11,417) | $ (7,510) |
Reinsurance-related embedded derivatives | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Abstract] | ||||
Beginning Fair Value | (25) | 0 | ||
Items Included in Net Income | (28) | (53) | ||
Gains (Losses) in OCI and Other | 0 | 0 | ||
Issuances, Sales, Maturities, Settlements, Calls, Net | 0 | 0 | ||
Transfers Into or Out of Level 3, Net | 0 | 0 | ||
Ending Fair Value | $ (53) | $ (53) |
Fair Value of Financial Instr_8
Fair Value of Financial Instruments - Schedule of Investment Holdings Movements (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | ||||
Issuances | $ 599 | $ 196 | $ 1,185 | $ 1,326 |
Sales | (140) | (165) | (270) | (275) |
Maturities | 0 | (26) | (4) | (34) |
Settlements | 661 | (209) | 570 | (437) |
Calls | (11) | (11) | (12) | (13) |
Total | 1,109 | (215) | 1,469 | 567 |
Corporate bonds | Fixed maturity AFS securities | ||||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | ||||
Issuances | 375 | 253 | 911 | 1,390 |
Sales | (79) | (62) | (206) | (117) |
Maturities | 0 | (26) | (2) | (34) |
Settlements | (125) | (211) | (221) | (279) |
Calls | 0 | (11) | (1) | (11) |
Total | 171 | (57) | 481 | 949 |
RMBS | Fixed maturity AFS securities | ||||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | ||||
Issuances | 6 | 5 | 6 | 5 |
Sales | 0 | 0 | 0 | 0 |
Maturities | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Calls | 0 | 0 | 0 | 0 |
Total | 6 | 5 | 6 | 5 |
CMBS | Fixed maturity AFS securities | ||||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | ||||
Issuances | 14 | 0 | 14 | 0 |
Sales | 0 | 0 | 0 | 0 |
Maturities | 0 | 0 | 0 | 0 |
Settlements | 0 | (4) | 0 | (4) |
Calls | 0 | 0 | 0 | 0 |
Total | 14 | (4) | 14 | (4) |
ABS | Fixed maturity AFS securities | ||||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | ||||
Issuances | 462 | 216 | 726 | 457 |
Sales | (30) | 0 | (30) | (2) |
Maturities | 0 | 0 | 0 | 0 |
Settlements | (56) | (64) | (119) | (135) |
Calls | (11) | 0 | (11) | 0 |
Total | 365 | 152 | 566 | 320 |
State and municipal bonds | Fixed maturity AFS securities | ||||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | ||||
Issuances | 0 | 0 | ||
Sales | (1) | (1) | ||
Maturities | 0 | 0 | ||
Settlements | 0 | 0 | ||
Calls | 0 | 0 | ||
Total | (1) | 0 | (1) | |
Hybrid and redeemable preferred securities | Fixed maturity AFS securities | ||||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | ||||
Issuances | 0 | |||
Sales | 0 | |||
Maturities | 0 | |||
Settlements | 0 | |||
Calls | (2) | |||
Total | 0 | 0 | 0 | (2) |
Trading securities | ||||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | ||||
Issuances | 4 | 0 | 4 | 0 |
Sales | 0 | (102) | (2) | (155) |
Maturities | 0 | 0 | 0 | 0 |
Settlements | (2) | (3) | (13) | (77) |
Calls | 0 | 0 | 0 | 0 |
Total | 2 | (105) | (11) | (232) |
Equity securities | ||||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | ||||
Issuances | 0 | 1 | 0 | 1 |
Sales | (1) | 0 | (1) | 0 |
Maturities | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Calls | 0 | 0 | 0 | 0 |
Total | (1) | 1 | (1) | 1 |
Mortgage loans on real estate | ||||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | ||||
Issuances | 0 | 3 | 1 | 4 |
Sales | (30) | 0 | (31) | 0 |
Maturities | 0 | 0 | 0 | 0 |
Settlements | (5) | (87) | (5) | (90) |
Calls | 0 | 0 | 0 | 0 |
Total | (35) | (84) | (35) | (86) |
Derivative investments | ||||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | ||||
Issuances | (3) | 4 | ||
Sales | 0 | 0 | ||
Maturities | 0 | (2) | ||
Settlements | 0 | 0 | ||
Calls | 0 | 0 | ||
Total | (3) | 0 | 2 | 0 |
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 | 26 | 34 | 52 | 84 |
Sales | 0 | 0 | 0 | 0 |
Maturities | 0 | 0 | 0 | 0 |
Settlements | 746 | 0 | 720 | (17) |
Calls | 0 | 0 | 0 | 0 |
Total | 772 | 34 | 772 | 67 |
RILA, fixed indexed annuity and IUL contracts | Policyholder account balances | ||||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | ||||
Issuances | (285) | (316) | (533) | (615) |
Sales | 0 | 0 | 0 | 0 |
Maturities | 0 | 0 | 0 | 0 |
Settlements | 103 | 160 | 208 | 165 |
Calls | 0 | 0 | 0 | 0 |
Total | $ (182) | $ (156) | $ (325) | $ (450) |
Fair Value of Financial Instr_9
Fair Value of Financial Instruments - Changes in Unrealized Gains (Losses) Within Level 3 Financial Instruments Carried at Fair Value and Still Held (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Fair Value Assets and Liabilities Measured on Recurring Basis Level 3 Activity [Line Items] | ||||
Changes in unrealized gains (losses) included in net income | $ 349 | $ 1,147 | $ 1,258 | $ (118) |
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) | 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 | $ (1) | $ (5) | $ (1) | $ 1 |
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 | 0 | (13) | (2) | (29) |
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 | (3) | (5) | (4) | (3) |
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 | (8) | 0 | 8 | (2) |
MRBs | ||||
Fair Value Assets and Liabilities Measured on Recurring Basis Level 3 Activity [Line Items] | ||||
Changes in unrealized gains (losses) included in net income | 160 | 1,222 | 845 | 133 |
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 | 1 | 3 | (4) | (10) |
Reinsurance-related 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 | (28) | 0 | (53) | 0 |
RILA, fixed indexed annuity and IUL contracts | ||||
Fair Value Assets and Liabilities Measured on Recurring Basis Level 3 Activity [Line Items] | ||||
Changes in unrealized gains (losses) included in net income | $ 228 | $ (55) | $ 469 | $ (208) |
Fair Value of Financial Inst_10
Fair Value of Financial Instruments - Changes in Unrealized Gains (Losses) Included in OCI (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Fair Value Assets and Liabilities Measured on Recurring Basis Level 3 Activity [Line Items] | ||||
Unrealized gains (losses) included in OCI, net | $ (48) | $ (4) | $ (55) | $ 18 |
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) | 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 | $ (27) | $ 0 | $ (37) | $ 12 |
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 | 0 | 3 | 0 | 3 |
ABS | ||||
Fair Value Assets and Liabilities Measured on Recurring Basis Level 3 Activity [Line Items] | ||||
Unrealized gains (losses) included in OCI, net | (20) | (7) | (20) | 1 |
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) | (2) | 1 | (2) |
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 | $ 0 | $ 2 | $ 1 | $ 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 | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | ||||
Transfers Into Level 3 | $ 18 | $ 141 | $ 68 | $ 211 |
Transfers Out of Level 3 | (177) | (116) | (300) | (352) |
Total | (159) | 25 | (232) | (141) |
Corporate bonds | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | ||||
Transfers Into Level 3 | 0 | 100 | 19 | 158 |
Transfers Out of Level 3 | (92) | (76) | (136) | (119) |
Total | (92) | 24 | (117) | 39 |
State and municipal 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) | 0 | ||
Total | (5) | 0 | ||
CMBS | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | ||||
Transfers Into Level 3 | 0 | 4 | 0 | 4 |
Transfers Out of Level 3 | 0 | 0 | 0 | 0 |
Total | 0 | 4 | 0 | 4 |
ABS | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | ||||
Transfers Into Level 3 | 18 | 2 | 49 | 2 |
Transfers Out of Level 3 | (85) | (40) | (108) | (233) |
Total | (67) | (38) | (59) | (231) |
Hybrid and redeemable preferred securities | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | ||||
Transfers Into Level 3 | 0 | 4 | 0 | 16 |
Transfers Out of Level 3 | 0 | 0 | 0 | 0 |
Total | 0 | 4 | 0 | 16 |
Derivative investments | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | ||||
Transfers Into Level 3 | 0 | 31 | 0 | 31 |
Transfers Out of Level 3 | 0 | 0 | (51) | 0 |
Total | $ 0 | $ 31 | $ (51) | $ 31 |
Fair Value of Financial Inst_12
Fair Value of Financial Instruments - Fair Value Inputs Quantitative Information (Details) $ in Millions | Jun. 30, 2024 USD ($) | Dec. 31, 2023 USD ($) |
Assets | ||
Fixed maturity available-for-sale securities, at fair value | $ 81,037 | $ 82,300 |
Market risk benefit assets | 4,754 | 3,894 |
Liabilities | ||
Market risk benefit liabilities | (1,275) | (1,716) |
Corporate bonds | ||
Assets | ||
Fixed maturity available-for-sale securities, at fair value | 62,023 | 63,866 |
State and municipal bonds | ||
Assets | ||
Fixed maturity available-for-sale securities, at fair value | 2,240 | 2,542 |
CMBS | ||
Assets | ||
Fixed maturity available-for-sale securities, at fair value | 1,402 | 1,344 |
ABS | ||
Assets | ||
Fixed maturity available-for-sale securities, at fair value | 12,947 | 12,043 |
Hybrid and redeemable preferred securities | ||
Assets | ||
Fixed maturity available-for-sale securities, at fair value | 227 | 232 |
Significant Unobservable Inputs (Level 3) | ||
Assets | ||
Equity securities | 5 | 5 |
Market risk benefit assets | 4,754 | 3,894 |
Liabilities | ||
Embedded derivative liability | (11,325) | (9,013) |
Market risk benefit liabilities | $ (1,275) | $ (1,716) |
Significant Unobservable Inputs (Level 3) | Minimum | Liquidity/Duration Adjustment | ||
Assets | ||
Equity securities, measurement input | 0.045 | 0.045 |
Significant Unobservable Inputs (Level 3) | Minimum | Lapse | ||
Liabilities | ||
Embedded derivative liability, measurement input | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Maximum | Liquidity/Duration Adjustment | ||
Assets | ||
Equity securities, measurement input | 0.045 | 0.045 |
Significant Unobservable Inputs (Level 3) | Maximum | Lapse | ||
Liabilities | ||
Embedded derivative liability, measurement input | 0.09 | 0.09 |
Significant Unobservable Inputs (Level 3) | Weighted Average Range | Liquidity/Duration Adjustment | ||
Assets | ||
Equity securities, measurement input | 0.045 | 0.045 |
Significant Unobservable Inputs (Level 3) | Corporate bonds | ||
Assets | ||
Fixed maturity available-for-sale securities, at fair value | $ 173 | $ 183 |
Significant Unobservable Inputs (Level 3) | Corporate bonds | Minimum | Liquidity/Duration Adjustment | ||
Assets | ||
Fixed maturity AFS and trading securities, measurement input | 0 | (0.002) |
Significant Unobservable Inputs (Level 3) | Corporate bonds | Maximum | Liquidity/Duration Adjustment | ||
Assets | ||
Fixed maturity AFS and trading securities, measurement input | 0.036 | 0.037 |
Significant Unobservable Inputs (Level 3) | Corporate bonds | Weighted Average Range | Liquidity/Duration Adjustment | ||
Assets | ||
Fixed maturity AFS and trading securities, measurement input | 0.019 | 0.021 |
Significant Unobservable Inputs (Level 3) | State and municipal bonds | ||
Assets | ||
Fixed maturity available-for-sale securities, at fair value | $ 5 | |
Significant Unobservable Inputs (Level 3) | State and municipal bonds | Minimum | Liquidity/Duration Adjustment | ||
Assets | ||
Fixed maturity AFS and trading securities, measurement input | 0.009 | |
Significant Unobservable Inputs (Level 3) | State and municipal bonds | Maximum | Liquidity/Duration Adjustment | ||
Assets | ||
Fixed maturity AFS and trading securities, measurement input | 0.022 | |
Significant Unobservable Inputs (Level 3) | State and municipal bonds | Weighted Average Range | Liquidity/Duration Adjustment | ||
Assets | ||
Fixed maturity AFS and trading securities, measurement input | 0.021 | |
Significant Unobservable Inputs (Level 3) | CMBS | ||
Assets | ||
Fixed maturity available-for-sale securities, at fair value | $ 8 | $ 8 |
Significant Unobservable Inputs (Level 3) | CMBS | Minimum | Liquidity/Duration Adjustment | ||
Assets | ||
Fixed maturity AFS and trading securities, measurement input | 0.019 | 0.023 |
Significant Unobservable Inputs (Level 3) | CMBS | Maximum | Liquidity/Duration Adjustment | ||
Assets | ||
Fixed maturity AFS and trading securities, measurement input | 0.019 | 0.023 |
Significant Unobservable Inputs (Level 3) | CMBS | Weighted Average Range | Liquidity/Duration Adjustment | ||
Assets | ||
Fixed maturity AFS and trading securities, measurement input | 0.019 | 0.023 |
Significant Unobservable Inputs (Level 3) | ABS | ||
Assets | ||
Fixed maturity available-for-sale securities, at fair value | $ 11 | $ 12 |
Significant Unobservable Inputs (Level 3) | ABS | Minimum | Liquidity/Duration Adjustment | ||
Assets | ||
Fixed maturity AFS and trading securities, measurement input | 0.014 | 0.018 |
Significant Unobservable Inputs (Level 3) | ABS | Maximum | Liquidity/Duration Adjustment | ||
Assets | ||
Fixed maturity AFS and trading securities, measurement input | 0.014 | 0.018 |
Significant Unobservable Inputs (Level 3) | ABS | Weighted Average Range | Liquidity/Duration Adjustment | ||
Assets | ||
Fixed maturity AFS and trading securities, measurement input | 0.014 | 0.018 |
Significant Unobservable Inputs (Level 3) | Hybrid and redeemable preferred securities | ||
Assets | ||
Fixed maturity available-for-sale securities, at fair value | $ 7 | $ 7 |
Significant Unobservable Inputs (Level 3) | Hybrid and redeemable preferred securities | Minimum | Liquidity/Duration Adjustment | ||
Assets | ||
Fixed maturity AFS and trading securities, measurement input | 0.012 | 0.014 |
Significant Unobservable Inputs (Level 3) | Hybrid and redeemable preferred securities | Maximum | Liquidity/Duration Adjustment | ||
Assets | ||
Fixed maturity AFS and trading securities, measurement input | 0.015 | 0.015 |
Significant Unobservable Inputs (Level 3) | Hybrid and redeemable preferred securities | Weighted Average Range | Liquidity/Duration Adjustment | ||
Assets | ||
Fixed maturity AFS and trading securities, measurement input | 0.013 | 0.015 |
Significant Unobservable Inputs (Level 3) | Other assets – ceded MRBs | ||
Assets | ||
Market risk benefit assets | $ 39 | $ 274 |
Significant Unobservable Inputs (Level 3) | Other assets – ceded MRBs | Minimum | Lapse | ||
Assets | ||
Market risk benefit, measurement input | 0.01 | 0.01 |
Significant Unobservable Inputs (Level 3) | Other assets – ceded MRBs | Minimum | Utilization of GLB Withdrawls | ||
Assets | ||
Market risk benefit, measurement input | 0.85 | 0.85 |
Significant Unobservable Inputs (Level 3) | Other assets – ceded MRBs | Minimum | Claims Utilization Factor | ||
Assets | ||
Market risk benefit, measurement input | 0.60 | 0.60 |
Significant Unobservable Inputs (Level 3) | Other assets – ceded MRBs | Minimum | Premiums Utilization Factor | ||
Assets | ||
Market risk benefit, measurement input | 0.80 | 0.80 |
Significant Unobservable Inputs (Level 3) | Other assets – ceded MRBs | Minimum | Non-Performance Risk | ||
Assets | ||
Market risk benefit, measurement input | 0.0021 | 0.0051 |
Significant Unobservable Inputs (Level 3) | Other assets – ceded MRBs | Minimum | Volatility | ||
Assets | ||
Market risk benefit, measurement input | 0.01 | 0.01 |
Significant Unobservable Inputs (Level 3) | Other assets – ceded MRBs | Maximum | Lapse | ||
Assets | ||
Market risk benefit, measurement input | 0.30 | 0.30 |
Significant Unobservable Inputs (Level 3) | Other assets – ceded MRBs | Maximum | Utilization of GLB Withdrawls | ||
Assets | ||
Market risk benefit, measurement input | 1 | 1 |
Significant Unobservable Inputs (Level 3) | Other assets – ceded MRBs | Maximum | Claims Utilization Factor | ||
Assets | ||
Market risk benefit, measurement input | 1 | 1 |
Significant Unobservable Inputs (Level 3) | Other assets – ceded MRBs | Maximum | Premiums Utilization Factor | ||
Assets | ||
Market risk benefit, measurement input | 1.15 | 1.15 |
Significant Unobservable Inputs (Level 3) | Other assets – ceded MRBs | Maximum | Non-Performance Risk | ||
Assets | ||
Market risk benefit, measurement input | 0.0192 | 0.0213 |
Significant Unobservable Inputs (Level 3) | Other assets – ceded MRBs | Maximum | Volatility | ||
Assets | ||
Market risk benefit, measurement input | 0.29 | 0.29 |
Significant Unobservable Inputs (Level 3) | Other assets – ceded MRBs | Weighted Average Range | Utilization of GLB Withdrawls | ||
Assets | ||
Market risk benefit, measurement input | 0.94 | 0.94 |
Significant Unobservable Inputs (Level 3) | Other assets – ceded MRBs | Weighted Average Range | Non-Performance Risk | ||
Assets | ||
Market risk benefit, measurement input | 0.0155 | 0.0178 |
Significant Unobservable Inputs (Level 3) | Other assets – ceded MRBs | Weighted Average Range | Volatility | ||
Assets | ||
Market risk benefit, measurement input | 0.1412 | 0.1392 |
Significant Unobservable Inputs (Level 3) | Other assets - indexed annuity ceded embedded derivatives | ||
Assets | ||
Embedded derivative asset | $ 1,756 | $ 940 |
Significant Unobservable Inputs (Level 3) | Other assets - indexed annuity ceded embedded derivatives | Minimum | Lapse | ||
Assets | ||
Embedded derivative asset, measurement input | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Other assets - indexed annuity ceded embedded derivatives | Maximum | Lapse | ||
Assets | ||
Embedded derivative asset, measurement input | 0.09 | 0.09 |
Significant Unobservable Inputs (Level 3) | Other assets - LPR ceded derivative | ||
Assets | ||
Embedded derivative asset | $ 202 | $ 206 |
Significant Unobservable Inputs (Level 3) | Other assets - LPR ceded derivative | Minimum | Lapse | ||
Assets | ||
Embedded derivative asset, measurement input | 0.0010 | 0.001 |
Significant Unobservable Inputs (Level 3) | Other assets - LPR ceded derivative | Minimum | Non-Performance Risk | ||
Assets | ||
Embedded derivative asset, measurement input | 0.0021 | 0.01 |
Significant Unobservable Inputs (Level 3) | Other assets - LPR ceded derivative | Maximum | Lapse | ||
Assets | ||
Embedded derivative asset, measurement input | 0.0200 | 0.0200 |
Significant Unobservable Inputs (Level 3) | Other assets - LPR ceded derivative | Maximum | Non-Performance Risk | ||
Assets | ||
Embedded derivative asset, measurement input | 0.0192 | 0.0213 |
Significant Unobservable Inputs (Level 3) | Other assets - LPR ceded derivative | Weighted Average Range | Non-Performance Risk | ||
Assets | ||
Embedded derivative asset, measurement input | 0.0136 | 0.0158 |
Significant Unobservable Inputs (Level 3) | Other liabilities – ceded MRBs | ||
Liabilities | ||
Market risk benefit liabilities | $ (2,189) | $ (1,149) |
Significant Unobservable Inputs (Level 3) | Other liabilities – ceded MRBs | Minimum | Lapse | ||
Assets | ||
Market risk benefit, measurement input | 0.01 | 0.01 |
Significant Unobservable Inputs (Level 3) | Other liabilities – ceded MRBs | Minimum | Utilization of GLB Withdrawls | ||
Assets | ||
Market risk benefit, measurement input | 0.85 | 0.85 |
Significant Unobservable Inputs (Level 3) | Other liabilities – ceded MRBs | Minimum | Claims Utilization Factor | ||
Assets | ||
Market risk benefit, measurement input | 0.60 | 0.60 |
Significant Unobservable Inputs (Level 3) | Other liabilities – ceded MRBs | Minimum | Premiums Utilization Factor | ||
Assets | ||
Market risk benefit, measurement input | 0.80 | 0.80 |
Significant Unobservable Inputs (Level 3) | Other liabilities – ceded MRBs | Minimum | Non-Performance Risk | ||
Assets | ||
Market risk benefit, measurement input | 0.0021 | 0.0051 |
Significant Unobservable Inputs (Level 3) | Other liabilities – ceded MRBs | Minimum | Volatility | ||
Assets | ||
Market risk benefit, measurement input | 0.01 | 0.01 |
Significant Unobservable Inputs (Level 3) | Other liabilities – ceded MRBs | Maximum | Lapse | ||
Assets | ||
Market risk benefit, measurement input | 0.30 | 0.30 |
Significant Unobservable Inputs (Level 3) | Other liabilities – ceded MRBs | Maximum | Utilization of GLB Withdrawls | ||
Assets | ||
Market risk benefit, measurement input | 1 | 1 |
Significant Unobservable Inputs (Level 3) | Other liabilities – ceded MRBs | Maximum | Claims Utilization Factor | ||
Assets | ||
Market risk benefit, measurement input | 1 | 1 |
Significant Unobservable Inputs (Level 3) | Other liabilities – ceded MRBs | Maximum | Premiums Utilization Factor | ||
Assets | ||
Market risk benefit, measurement input | 1.15 | 1.15 |
Significant Unobservable Inputs (Level 3) | Other liabilities – ceded MRBs | Maximum | Non-Performance Risk | ||
Assets | ||
Market risk benefit, measurement input | 0.0192 | 0.0213 |
Significant Unobservable Inputs (Level 3) | Other liabilities – ceded MRBs | Maximum | Volatility | ||
Assets | ||
Market risk benefit, measurement input | 0.29 | 0.29 |
Significant Unobservable Inputs (Level 3) | Other liabilities – ceded MRBs | Weighted Average Range | Utilization of GLB Withdrawls | ||
Assets | ||
Market risk benefit, measurement input | 0.94 | 0.94 |
Significant Unobservable Inputs (Level 3) | Other liabilities – ceded MRBs | Weighted Average Range | Non-Performance Risk | ||
Assets | ||
Market risk benefit, measurement input | 0.0155 | 0.0178 |
Significant Unobservable Inputs (Level 3) | Other liabilities – ceded MRBs | Weighted Average Range | Volatility | ||
Assets | ||
Market risk benefit, measurement input | 0.1412 | 0.1392 |
Contingencies and Commitments (
Contingencies and Commitments (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Mar. 08, 2024 |
Commitments and Contingencies Disclosure [Abstract] | ||
Loss contingency, estimate | $ 150 | |
Loss contingency accrual | $ 147.5 |
Shares and Stockholders' Equity
Shares and Stockholders' Equity - Components and Changes in AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Change in our unrealized gain on derivative instruments in accumulated OCI | ||||
Balance as of beginning-of-year | $ 10,507 | |||
Foreign currency translation adjustment arising during the period | $ 24 | $ 1,296 | 198 | $ 3,909 |
Balance as of end-of-period | 11,029 | 10,401 | 11,029 | 10,401 |
Unrealized Gain (Loss) on Fixed Maturity AFS Securities and Certain Other Investments | ||||
Change in our unrealized gain on derivative instruments in accumulated OCI | ||||
Balance as of beginning-of-year | (3,532) | (8,526) | ||
Income tax benefit (expense) | (131) | (478) | ||
Reclassification adjustment for gains (losses) included in net income (loss) | (106) | (2,722) | ||
Income tax benefit (expense) | 22 | 572 | ||
Balance as of end-of-period | (2,970) | (4,680) | (2,970) | (4,680) |
Unrealized holding gains (losses) arising during the period | ||||
Change in our unrealized gain on derivative instruments in accumulated OCI | ||||
Change in foreign currency exchange rate adjustment | (1,489) | 1,199 | ||
Change in foreign currency exchange rate adjustment | ||||
Change in our unrealized gain on derivative instruments in accumulated OCI | ||||
Change in foreign currency exchange rate adjustment | (117) | 119 | ||
Change in future contract benefits and policyholder account balances, net of reinsurance | ||||
Change in our unrealized gain on derivative instruments in accumulated OCI | ||||
Change in foreign currency exchange rate adjustment | 2,215 | 856 | ||
Unrealized Gain (Loss) on Derivative Instruments | ||||
Change in our unrealized gain on derivative instruments in accumulated OCI | ||||
Balance as of beginning-of-year | 249 | 301 | ||
Income tax benefit (expense) | (35) | (20) | ||
Reclassification adjustment for gains (losses) included in net income (loss) | 27 | 30 | ||
Income tax benefit (expense) | (6) | (6) | ||
Balance as of end-of-period | 356 | 351 | 356 | 351 |
Unrealized holding gains (losses) arising during the period | ||||
Change in our unrealized gain on derivative instruments in accumulated OCI | ||||
Change in foreign currency exchange rate adjustment | 46 | 204 | ||
Change in foreign currency exchange rate adjustment | ||||
Change in our unrealized gain on derivative instruments in accumulated OCI | ||||
Change in foreign currency exchange rate adjustment | 117 | (110) | ||
Market Risk Benefit Non-Performance Risk Gain (Loss) | ||||
Change in our unrealized gain on derivative instruments in accumulated OCI | ||||
Balance as of beginning-of-year | 1,069 | 1,739 | ||
Adjustment arising during the year | (841) | 129 | ||
Income tax benefit (expense) | 180 | (27) | ||
Balance as of end-of-period | 408 | 1,841 | 408 | 1,841 |
Policyholder Liability Discount Rate Remeasurement Gain (Loss) | ||||
Change in our unrealized gain on derivative instruments in accumulated OCI | ||||
Balance as of beginning-of-year | 645 | 790 | ||
Adjustment arising during the year | 241 | (114) | ||
Income tax benefit (expense) | (51) | 26 | ||
Balance as of end-of-period | 835 | 702 | 835 | 702 |
Foreign Currency Translation Adjustment | ||||
Change in our unrealized gain on derivative instruments in accumulated OCI | ||||
Balance as of beginning-of-year | 0 | 0 | ||
Foreign currency translation adjustment arising during the period | 0 | (1) | ||
Balance as of end-of-period | 0 | (1) | 0 | (1) |
Funded Status of Employee Benefit Plans | ||||
Change in our unrealized gain on derivative instruments in accumulated OCI | ||||
Balance as of beginning-of-year | (16) | (17) | ||
Balance as of end-of-period | $ (16) | $ (17) | $ (16) | $ (17) |
Shares and Stockholders' Equi_2
Shares and Stockholders' Equity - Schedule of Reclassifications Out of AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Interest and debt expense | $ 48 | $ 47 | $ 96 | $ 93 |
Net investment income | 1,232 | 1,476 | 2,456 | 2,885 |
Realized gain (loss) | 283 | (3,252) | 226 | (3,646) |
Benefits | (2,726) | 1,676 | (989) | 3,872 |
Income (loss) before taxes | 927 | (1,255) | 1,751 | (2,485) |
Income tax benefit (expense) | (166) | 299 | (333) | 601 |
Net income (loss) | $ 761 | $ (956) | 1,418 | (1,884) |
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) | (111) | (3,140) | ||
Benefits | 5 | 418 | ||
Income (loss) before taxes | (106) | (2,722) | ||
Income tax benefit (expense) | 22 | 572 | ||
Net income (loss) | (84) | (2,150) | ||
Reclassification out of Accumulated Other Comprehensive Income | Unrealized Gain (Loss) on Derivative Instruments | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Interest and debt expense | (1) | 0 | ||
Net investment income | 29 | 27 | ||
Realized gain (loss) | (1) | 3 | ||
Income (loss) before taxes | 27 | 30 | ||
Income tax benefit (expense) | (6) | (6) | ||
Net income (loss) | $ 21 | $ 24 |
Segment Information - Reconcili
Segment Information - Reconciliation of Revenue from Segments to Consolidated (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 44 | $ 1,247 | $ 4,100 | $ 5,264 |
Other Operations | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 34 | 36 | 59 | 75 |
Revenue adjustments from annuity and life insurance product features | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 224 | (23) | 394 | (114) |
Credit loss-related adjustments, after-tax | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | (33) | (5) | (33) | (26) |
Investment gains (losses) | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | (204) | (3,081) | (260) | (3,137) |
Changes in the fair value of reinsurance-related embedded derivatives, trading securities and certain mortgage loans | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 43 | 71 | 90 | 60 |
GLB rider fees ceded to LNBAR | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | (232) | (232) | (462) | (465) |
Gains (losses) on other non-financial assets – sale of subsidiaries/businesses | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 481 | 0 | 481 | 0 |
Annuities | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 1,141 | 1,097 | 2,319 | 2,140 |
Life Insurance | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 1,318 | 1,656 | 2,498 | 3,294 |
Group Protection (1) | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | (3,051) | 1,400 | (1,626) | 2,787 |
Retirement Plan Services | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 323 | $ 328 | $ 640 | $ 650 |
Segment Information - Reconci_2
Segment Information - Reconciliation of Income (Loss) from Operations by Segment to Consolidated Net Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Segment Reporting Information [Line Items] | ||||
Net income (loss) | $ 761 | $ (956) | $ 1,418 | $ (1,884) |
Other Operations | ||||
Segment Reporting Information [Line Items] | ||||
Net income (loss) | (59) | (75) | (167) | (127) |
Net annuity product features, after-tax | ||||
Segment Reporting Information [Line Items] | ||||
Net income (loss) | 324 | 1,084 | 1,108 | 262 |
Net annuity product features, after-tax | Fortitude Re | ||||
Segment Reporting Information [Line Items] | ||||
Net income (loss) | 330 | 330 | ||
Net life insurance product features, after-tax (4) | ||||
Segment Reporting Information [Line Items] | ||||
Net income (loss) | (12) | 207 | (114) | 112 |
Credit loss-related adjustments, after-tax | ||||
Segment Reporting Information [Line Items] | ||||
Net income (loss) | (27) | (4) | (28) | (21) |
Investment gains (losses) | ||||
Segment Reporting Information [Line Items] | ||||
Net income (loss) | (160) | (2,435) | (206) | (2,478) |
Changes in the fair value of reinsurance-related embedded derivatives, trading securities and certain mortgage loans | ||||
Segment Reporting Information [Line Items] | ||||
Net income (loss) | 34 | 56 | 71 | 47 |
GLB rider fees ceded to LNBAR, after-tax | ||||
Segment Reporting Information [Line Items] | ||||
Net income (loss) | (182) | (184) | (364) | (367) |
Transaction and integration costs related to mergers, acquisitions and divestitures, after-tax | ||||
Segment Reporting Information [Line Items] | ||||
Net income (loss) | (12) | (7) | (21) | (7) |
Gains (losses) on other non-financial assets – sale of subsidiaries/businesses | ||||
Segment Reporting Information [Line Items] | ||||
Net income (loss) | 358 | 0 | 358 | 0 |
Annuities | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net income (loss) | 252 | 218 | 475 | 435 |
Life Insurance | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net income (loss) | 79 | 32 | 28 | 0 |
Group Protection (1) | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net income (loss) | 129 | 109 | 209 | 179 |
Retirement Plan Services | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net income (loss) | $ 37 | $ 43 | $ 69 | $ 81 |
Segment Information - Reconci_3
Segment Information - Reconciliation of Assets From Segments to Consolidated Balance Sheet (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $ 398,934 | $ 373,976 |
Operating Segments | Life Insurance | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 112,686 | 107,529 |
Operating Segments | Annuities | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 204,946 | 186,716 |
Operating Segments | Group Protection (1) | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 13,943 | 9,741 |
Operating Segments | Retirement Plan Services | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 47,830 | 46,969 |
Other Operations | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $ 19,529 | $ 23,021 |
Realized Gain (Loss) (Details)
Realized Gain (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Fixed maturity AFS securities: | ||||
Gross gains | $ 9 | $ 8 | $ 16 | $ 33 |
Gross losses | (120) | (48) | (178) | (111) |
Credit loss benefit (expense) | (23) | 1 | (25) | (15) |
Intent to sell impairments | 0 | (3,062) | 0 | (3,062) |
Realized gain (loss) on equity securities | 1 | (13) | 12 | (27) |
Credit loss benefit (expense) on mortgage loans on real estate | (17) | (3) | (17) | (7) |
Credit loss benefit (expense) on reinsurance-related assets | 7 | (3) | 9 | (4) |
Realized gain (loss) on the market-to-market on certain instruments | (68) | (80) | (201) | (207) |
Indexed product derivative results | 77 | (49) | 222 | (203) |
GLB rider fees ceded to LNBAR and attributed fees | (31) | (28) | (61) | (57) |
Realized gain (loss) on subsidiaries/businesses | 481 | 0 | 481 | 0 |
Other realized gain (loss) | (33) | 25 | (32) | 14 |
Total realized gain (loss) | 283 | (3,252) | 226 | (3,646) |
Mortgages | ||||
Fixed maturity AFS securities: | ||||
Realized gain (loss) on the market-to-market on certain instruments | 3 | (3) | 3 | (1) |
Equity securities | ||||
Fixed maturity AFS securities: | ||||
Realized gain (loss) on equity securities | $ 4 | $ (13) | $ 16 | $ (27) |
Federal Income Taxes (Details)
Federal Income Taxes (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate reconciliation, percent | 18% | 24% | 19% | 24% |
Supplemental Disclosures of C_3
Supplemental Disclosures of Cash Flow Data (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Non-cash transactions: | ||
Establishment of funds withheld liability in connection with a reinsurance transaction | $ (6,797,000) | $ 0 |
Extraordinary dividend to LNC in the form of fixed maturity AFS securities, mortgage loans on real estate and accrued investment income | (929,000) | 0 |
Net increase (decrease) in fixed maturity AFS securities and accrued investment income in connection with reinsurance activity | $ 287,000 | $ (15,000) |