Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Nov. 02, 2016 | |
Document and Entity Information | ||
Entity Registrant Name | RIVERSOURCE LIFE INSURANCE CO | |
Entity Central Index Key | 727,892 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 100,000 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Available-for-Sale: | ||
Fixed maturities, at fair value (amortized cost: 2016, $21,191; 2015, $20,886) | $ 23,137 | $ 21,772 |
Common stocks, at fair value (cost: 2016, $3; 2015, $2) | 8 | 7 |
Mortgage loans, at amortized cost (less allowance for loan losses: 2016 and 2015, $19) | 2,870 | 3,211 |
Policy loans | 835 | 823 |
Other Investments | 995 | 998 |
Total investments | 27,845 | 26,811 |
Cash and cash equivalents | 955 | 370 |
Reinsurance recoverables | 2,602 | 2,415 |
Other receivables | 294 | 255 |
Accrued investment income | 233 | 244 |
Deferred acquisition costs | 2,496 | 2,688 |
Other assets | 5,833 | 4,569 |
Separate account assets | 77,458 | 76,004 |
Total assets | 117,716 | 113,356 |
Liabilities: | ||
Policyholder account balances, future policy benefits and claims | 30,755 | 29,029 |
Short-term borrowings | 200 | 200 |
Other liabilities | 5,159 | 4,058 |
Separate account liabilities | 77,458 | 76,004 |
Total liabilities | 113,572 | 109,291 |
Shareholder's equity: | ||
Common stock, $30 par value; 100,000 shares authorized, issued and outstanding | 3 | 3 |
Additional paid-in capital | 2,467 | 2,465 |
Retained earnings | 936 | 1,202 |
Accumulated other comprehensive income, net of tax | 738 | 395 |
Total shareholder's equity | 4,144 | 4,065 |
Total liabilities and shareholder's equity | $ 117,716 | $ 113,356 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Fixed maturities, amortized cost | $ 21,191 | $ 20,886 |
Common stocks, cost | 3 | 2 |
Mortgage loans, allowance for loan losses | $ 19 | $ 19 |
Common stock, par value (in dollars per share) | $ 30 | $ 30 |
Common stock, shares authorized (in shares) | 100,000 | 100,000 |
Common stock, shares issued (in shares) | 100,000 | 100,000 |
Common stock, shares outstanding (in shares) | 100,000 | 100,000 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Revenues | ||||
Premiums | $ 104 | $ 95 | $ 315 | $ 300 |
Net investment income | 276 | 296 | 850 | 904 |
Policy and contract charges | 557 | 470 | 1,501 | 1,405 |
Other revenues | 104 | 103 | 303 | 320 |
Net realized investment gains (losses) | 1 | (11) | 15 | 5 |
Total revenues | 1,042 | 953 | 2,984 | 2,934 |
Benefits and expenses | ||||
Benefits, claims, losses and settlement expenses | 590 | 236 | 1,148 | 817 |
Interest credited to fixed accounts | 161 | 171 | 465 | 503 |
Amortization of deferred acquisition costs | 144 | 112 | 299 | 241 |
Other insurance and operating expenses | 149 | 170 | 505 | 539 |
Total benefits and expenses | 1,044 | 689 | 2,417 | 2,100 |
Pretax income (loss) | (2) | 264 | 567 | 834 |
Income tax provision (benefit) | (38) | 40 | 33 | 144 |
Net Income | 36 | 224 | 534 | 690 |
Supplemental Disclosures: | ||||
Total other-than-temporary impairment losses on securities | 0 | (7) | 0 | (8) |
Portion of loss recognized in other comprehensive income (before taxes) | 0 | 0 | 0 | 1 |
Net impairment losses recognized in net realized investment gains | $ 0 | $ (7) | $ 0 | $ (7) |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income | $ 36 | $ 224 | $ 534 | $ 690 |
Other comprehensive income (loss), net of tax: | ||||
Net unrealized gains (losses) on securities | (26) | (26) | 340 | (176) |
Net unrealized gains on derivatives | 1 | 1 | 3 | 3 |
Total other comprehensive income (loss), net of tax | (25) | (25) | 343 | (173) |
Total comprehensive income | $ 11 | $ 199 | $ 877 | $ 517 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDER'S EQUITY - USD ($) $ in Millions | Total | Common shares [Member] | Additional paid-in capital [Member] | Retained earnings [Member] | Accumulated other comprehensive income [Member] |
Beginning balance at Dec. 31, 2014 | $ 4,303 | $ 3 | $ 2,464 | $ 1,107 | $ 729 |
Comprehensive income: | |||||
Net Income | 690 | 690 | |||
Other comprehensive income (loss), net of tax | (173) | (173) | |||
Total comprehensive income | 517 | ||||
Tax adjustment on share-based incentive compensation plan | 2 | 2 | |||
Cash dividends to Ameriprise Financial, Inc. | (675) | (675) | |||
Ending balance at Sep. 30, 2015 | 4,147 | 3 | 2,466 | 1,122 | 556 |
Beginning balance at Dec. 31, 2015 | 4,065 | 3 | 2,465 | 1,202 | 395 |
Comprehensive income: | |||||
Net Income | 534 | 534 | |||
Other comprehensive income (loss), net of tax | 343 | 343 | |||
Total comprehensive income | 877 | ||||
Tax adjustment on share-based incentive compensation plan | 2 | 2 | |||
Cash dividends to Ameriprise Financial, Inc. | (800) | (800) | |||
Ending balance at Sep. 30, 2016 | $ 4,144 | $ 3 | $ 2,467 | $ 936 | $ 738 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Statement of Cash Flows [Abstract] | ||
Net Income | $ 534 | $ 690 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation, amortization and accretion, net | 30 | 10 |
Deferred income tax benefit | (5) | (5) |
Contractholder and policyholder charges, non-cash | (260) | (249) |
Loss from equity method investments | 43 | 25 |
Net realized investment gains | (17) | (14) |
Other-than-temporary impairments and provision for loan losses recognized in net realized investment gains | 2 | 9 |
Change in operating assets and liabilities: | ||
Deferred acquisition costs | 87 | 40 |
Policyholder account balances, future policy benefits and claims, net | 1,389 | 879 |
Derivatives, net of collateral | (658) | (162) |
Reinsurance recoverables | (200) | (95) |
Other receivables | (20) | 16 |
Accrued investment income | 11 | 8 |
Other, net | 169 | 406 |
Net cash provided by operating activities | 1,105 | 1,558 |
Available-for-Sale securities: | ||
Proceeds from sales | 254 | 120 |
Maturities, sinking fund payments and calls | 1,815 | 2,090 |
Purchases | (2,343) | (1,768) |
Proceeds from sales, maturities and repayments of mortgage loans | 679 | 469 |
Funding of mortgage loans | (327) | (397) |
Proceeds from sales and collections of other investments | 101 | 94 |
Purchase of other investments | (105) | (124) |
Purchase of land, buildings, equipment and software | (7) | (8) |
Change in policy loans, net | (12) | (18) |
Other, net | 22 | 30 |
Net cash provided by investing activities | 77 | 488 |
Policyholder account balances: | ||
Deposits and other additions | 1,532 | 1,514 |
Net transfers from (to) separate accounts | 113 | (141) |
Surrenders and other benefits | (1,448) | (2,169) |
Proceeds from line of credit with Ameriprise Financial, Inc. | 10 | 6 |
Payments on line of credit with Ameriprise Financial, Inc. | (10) | (6) |
Tax adjustment on share-based incentive compensation plan | 2 | 2 |
Cash received for purchased options with deferred premiums | 242 | 8 |
Cash paid for purchased options with deferred premiums | (238) | (286) |
Cash dividends to Ameriprise Financial, Inc. | (800) | (675) |
Net cash used in financing activities | (597) | (1,747) |
Net increase in cash and cash equivalents | 585 | 299 |
Cash and cash equivalents at beginning of period | 370 | 307 |
Cash and cash equivalents at end of period | 955 | 606 |
Supplemental Disclosures: | ||
Income taxes received, net | (31) | (145) |
Interest paid on borrowings | 1 | 1 |
Non-cash investing activity: | ||
Partnership commitments not yet remitted | $ 75 | $ 9 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation RiverSource Life Insurance Company is a stock life insurance company with one wholly owned stock life insurance company subsidiary, RiverSource Life Insurance Co. of New York (“RiverSource Life of NY”). RiverSource Life Insurance Company is a wholly owned subsidiary of Ameriprise Financial, Inc. (“Ameriprise Financial”). • RiverSource Life Insurance Company is domiciled in Minnesota and holds Certificates of Authority in American Samoa, the District of Columbia and all states except New York. RiverSource Life Insurance Company issues insurance and annuity products. • RiverSource Life of NY is domiciled and holds a Certificate of Authority in New York. RiverSource Life of NY issues insurance and annuity products. RiverSource Life Insurance Company also wholly owns RiverSource Tax Advantaged Investments, Inc. (“RTA”). RTA is a stock company domiciled in Delaware and is a limited partner in affordable housing partnership investments. The accompanying Consolidated Financial Statements include the accounts of RiverSource Life Insurance Company and companies in which it directly or indirectly has a controlling financial interest (collectively, the “Company”). All intercompany transactions and balances have been eliminated in consolidation. The interim financial information in this report has not been audited. In the opinion of management, all adjustments necessary for a fair presentation of the consolidated financial position and results of operations for the interim periods have been made. Except for the adjustment described below, all adjustments made were of a normal recurring nature. In the third quarter of 2016, the Company recorded a $29 million increase to long term care (“LTC”) reserves for an out-of-period correction related to its claim utilization assumption. The impact to prior period financial statements was not material. The accompanying Consolidated Financial Statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). Results of operations reported for interim periods are not necessarily indicative of results for the entire year. These Consolidated Financial Statements and Notes should be read in conjunction with the Consolidated Financial Statements and Notes in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 , filed with the Securities and Exchange Commission on February 25, 2016 . The Company evaluated events or transactions that may have occurred after the balance sheet date for potential recognition or disclosure through the date the financial statements were issued. No subsequent events or transactions were identified. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2016 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Adoption of New Accounting Standards Fair Value Measurement - Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent) In May 2015, the Financial Accounting Standards Board (“FASB”) updated the accounting standards related to fair value measurement. The update applies to investments that are measured at net asset value (“NAV”). The standard eliminates the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the NAV per share as a practical expedient. In addition, the update limits disclosures about the nature and risks of the investments to investments for which the entity elected to measure the fair value using the practical expedient rather than all investments that are eligible for the NAV practical expedient. The standard is effective for interim and annual periods beginning after December 15, 2015. The Company adopted the standard on January 1, 2016 on a retrospective basis to all periods presented. There was no impact of the standard to the Company’s consolidated financial condition or results of operations. Consolidation In February 2015, the FASB updated the accounting standard for consolidation. The update changes the accounting for the consolidation model for limited partnerships and variable interest entities (“VIEs”) and excludes certain money market funds from the consolidation analysis. Specific to the consolidation analysis of a VIE, the update clarifies consideration of fees paid to a decision maker and amends the related party guidance. The standard is effective for periods beginning after December 15, 2015. The Company adopted the standard on January 1, 2016 using the modified retrospective approach. There was no impact of the standard to the Company’s consolidated financial condition or results of operations. Future Adoption of New Accounting Standards Statement of Cash Flows - Classification of Certain Cash Receipts and Cash Payments In August 2016, the FASB updated the accounting standards related to classification of certain cash receipts and cash payments on the statement of cash flows. The update includes amendments to address diversity in practice for the classification of eight specific cash flow activities. The specific amendments the Company is evaluating include the classification of proceeds from insurance settlements and corporate owned life insurance settlements, distributions from equity method investees and the application of the predominance principle to separately identifiable cash flows. The standard is effective for interim and annual periods beginning after December 15, 2017. Early adoption is permitted and all amendments must be adopted during the same period. The Company is currently evaluating the impact of the standard, but does not expect adoption of the standard to have a material impact on its consolidated cash flows. Financial Instruments - Measurement of Credit Losses In June 2016, the FASB updated the accounting standards related to accounting for credit losses on certain types of financial instruments. The update replaces the current incurred loss model for estimating credit losses with a new model that requires an entity to estimate the credit losses expected over the life of the asset. Generally, the initial estimate of the expected credit losses and subsequent changes in the estimate will be reported in current period earnings and recorded through an allowance for credit losses on the balance sheet. The current credit loss model for Available-for-Sale debt securities does not change; however, the credit loss calculation and subsequent recoveries are required to be recorded through an allowance. The standard is effective for interim and annual periods beginning after December 15, 2019. Early adoption will be permitted for interim and annual periods beginning after December 15, 2018. A modified retrospective cumulative adjustment to retained earnings should be recorded as of the first reporting period in which the guidance is effective for loans, receivables, and other financial instruments subject to the new expected credit loss model. Prospective adoption is required for establishing an allowance related to Available-for-Sale debt securities, certain beneficial interests, and financial assets purchased with a more-than-insignificant amount of credit deterioration since origination. The Company is currently evaluating the impact of the standard on its consolidated financial condition and results of operations. Leases - Recognition of Lease Assets and Liabilities on Balance Sheet In February 2016, the FASB updated the accounting standards for leases. The update was issued to increase transparency and comparability for the accounting of lease transactions. The standard will require most lease transactions for lessees to be recorded on the balance sheet as lease assets and lease liabilities and both quantitative and qualitative disclosures about leasing arrangements. The standard is effective for interim and annual periods beginning after December 15, 2018 with early adoption permitted. The update should be applied at the beginning of the earliest period presented using a modified retrospective approach. The Company is currently evaluating the impact of the standard on its consolidated financial condition and results of operations. Financial Instruments - Recognition and Measurement of Financial Assets and Financial Liabilities In January 2016, the FASB updated the accounting standards on the recognition and measurement of financial instruments. The update requires entities to carry marketable equity securities, excluding investments in securities that qualify for the equity method of accounting, at fair value with changes in fair value reflected in net income each reporting period. The update affects other aspects of accounting for equity instruments, as well as the accounting for financial liabilities utilizing the fair value option. The update eliminates the requirement to disclose the methods and assumptions used to estimate the fair value of financial assets or liabilities held at cost on the balance sheet and requires entities to use the exit price notion when measuring the fair value of financial instruments. The standard is effective for interim and annual periods beginning after December 15, 2017. Early adoption is permitted for certain provisions. Generally, the update should be applied using a modified retrospective approach by recording a cumulative-effect adjustment to equity at the beginning of the period of adoption. The Company is currently evaluating the impact of the standard on its consolidated financial condition and results of operations. Revenue from Contracts with Customers In May 2014, the FASB updated the accounting standards for revenue from contracts with customers. The update provides a five step revenue recognition model for all revenue arising from contracts with customers and affects all entities that enter into contracts to provide goods or services to their customers (unless the contracts are in the scope of other standards). The standard also updates the accounting for certain costs associated with obtaining and fulfilling a customer contract and requires disclosure of quantitative and qualitative information that enables users of financial statements to understand the nature, amount, timing, and uncertainty of revenues and cash flows arising from contracts with customers. Subsequent related updates provide clarification on certain revenue recognition guidance in the new standard. The standard is effective for interim and annual periods beginning after December 15, 2017 and early adoption is permitted for interim and annual periods beginning after December 15, 2016. The standard may be applied retrospectively for all periods presented or retrospectively with a cumulative-effect adjustment at the date of adoption. The Company is currently evaluating the impact of the standard on its consolidated financial condition, results of operations and disclosures. |
Investments
Investments | 9 Months Ended |
Sep. 30, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments [Text Block] | Investments Available-for-Sale securities distributed by type were as follows: September 30, 2016 Description of Securities Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Noncredit OTTI (1) (in millions) Fixed maturities: Corporate debt securities $ 13,134 $ 1,477 $ (38 ) $ 14,573 $ 3 Residential mortgage backed securities 3,401 127 (18 ) 3,510 (5 ) Commercial mortgage backed securities 2,524 127 (1 ) 2,650 — State and municipal obligations 1,072 231 (13 ) 1,290 — Asset backed securities 805 34 (5 ) 834 — Foreign government bonds and obligations 251 28 (4 ) 275 — U.S. government and agencies obligations 4 1 — 5 — Total fixed maturities 21,191 2,025 (79 ) 23,137 (2 ) Common stocks 3 5 — 8 3 Total $ 21,194 $ 2,030 $ (79 ) $ 23,145 $ 1 December 31, 2015 Description of Securities Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Noncredit OTTI (1) (in millions) Fixed maturities: Corporate debt securities $ 13,764 $ 891 $ (281 ) $ 14,374 $ 2 Residential mortgage backed securities 3,015 96 (36 ) 3,075 (8 ) Commercial mortgage backed securities 2,081 68 (13 ) 2,136 — State and municipal obligations 1,023 153 (27 ) 1,149 — Asset backed securities 748 33 (5 ) 776 — Foreign government bonds and obligations 217 17 (11 ) 223 — U.S. government and agencies obligations 38 1 — 39 — Total fixed maturities 20,886 1,259 (373 ) 21,772 (6 ) Common stocks 2 5 — 7 3 Total $ 20,888 $ 1,264 $ (373 ) $ 21,779 $ (3 ) (1) Represents the amount of other-than-temporary impairment (“OTTI”) losses in accumulated other comprehensive income (“AOCI”). Amount includes unrealized gains and losses on impaired securities subsequent to the initial impairment measurement date. These amounts are included in gross unrealized gains and losses as of the end of the period. As of September 30, 2016 and December 31, 2015 , investment securities with a fair value of $1.2 billion and $862 million , respectively, were pledged to meet contractual obligations under derivative contracts and short-term borrowings, of which $206 million and $408 million , respectively, may be sold, pledged or rehypothecated by the counterparty. As of September 30, 2016 and December 31, 2015 , fixed maturity securities comprised approximately 83% and 81% , respectively, of the Company’s total investments. Rating agency designations are based on the availability of ratings from Nationally Recognized Statistical Rating Organizations (“NRSROs”), including Moody’s Investors Service (“Moody’s”), Standard & Poor’s Ratings Services (“S&P”) and Fitch Ratings Ltd. (“Fitch”). The Company uses the median of available ratings from Moody’s, S&P and Fitch, or if fewer than three ratings are available, the lower rating is used. When ratings from Moody’s, S&P and Fitch are unavailable, the Company may utilize ratings from other NRSROs or rate the securities internally. As of September 30, 2016 and December 31, 2015 , approximately $977 million and $1.1 billion , respectively, of securities were internally rated by Columbia Management Investment Advisers, LLC, an affiliate of the Company, using criteria similar to those used by NRSROs. A summary of fixed maturity securities by rating was as follows: September 30, 2016 December 31, 2015 Ratings Amortized Cost Fair Value Percent of Total Fair Value Amortized Cost Fair Value Percent of Total Fair Value (in millions, except percentages) AAA $ 5,376 $ 5,625 24 % $ 4,661 $ 4,806 22 % AA 1,010 1,248 6 1,010 1,185 5 A 3,777 4,333 19 3,749 4,101 19 BBB 9,559 10,461 45 9,964 10,278 47 Below investment grade 1,469 1,470 6 1,502 1,402 7 Total fixed maturities $ 21,191 $ 23,137 100 % $ 20,886 $ 21,772 100 % At September 30, 2016 and December 31, 2015 , approximately 42% and 47% , respectively, of the securities rated AAA were GNMA, FNMA and FHLMC mortgage backed securities. No holdings of any other issuer were greater than 10% of total equity. The following tables provide information about Available-for-Sale securities with gross unrealized losses and the length of time that individual securities have been in a continuous unrealized loss position: September 30, 2016 Less than 12 months 12 months or more Total Description of Securities Number Fair Value Unrealized Losses Number Fair Value Unrealized Losses Number Fair Value Unrealized Losses (in millions, except number of securities) Corporate debt securities 20 $ 146 $ (2 ) 37 $ 361 $ (36 ) 57 $ 507 $ (38 ) Residential mortgage backed securities 28 434 (3 ) 56 370 (15 ) 84 804 (18 ) Commercial mortgage backed securities 13 190 (1 ) 1 11 — 14 201 (1 ) State and municipal obligations 3 7 — 2 113 (13 ) 5 120 (13 ) Asset backed securities 22 215 (3 ) 6 50 (2 ) 28 265 (5 ) Foreign government bonds and obligations 1 1 — 14 24 (4 ) 15 25 (4 ) Total 87 $ 993 $ (9 ) 116 $ 929 $ (70 ) 203 $ 1,922 $ (79 ) December 31, 2015 Less than 12 months 12 months or more Total Description of Securities Number Fair Value Unrealized Losses Number Fair Value Unrealized Losses Number Fair Value Unrealized Losses (in millions, except number of securities) Corporate debt securities 253 $ 3,703 $ (208 ) 35 $ 300 $ (73 ) 288 $ 4,003 $ (281 ) Residential mortgage backed securities 36 535 (7 ) 59 526 (29 ) 95 1,061 (36 ) Commercial mortgage backed securities 45 568 (12 ) 3 33 (1 ) 48 601 (13 ) State and municipal obligations 9 40 (1 ) 2 101 (26 ) 11 141 (27 ) Asset backed securities 21 241 (5 ) — — — 21 241 (5 ) Foreign government bonds and obligations 9 39 (2 ) 15 27 (9 ) 24 66 (11 ) Total 373 $ 5,126 $ (235 ) 114 $ 987 $ (138 ) 487 $ 6,113 $ (373 ) As part of the Company’s ongoing monitoring process, management determined that the change in gross unrealized losses on its Available-for-Sale securities is attributable to a decrease in interest rates and a tightening of credit spreads. The following table presents a rollforward of the cumulative amounts recognized in the Consolidated Statements of Income for other-than-temporary impairments related to credit losses on Available-for-Sale securities for which a portion of the securities’ total other-than-temporary impairments was recognized in other comprehensive income (loss) (“OCI”): Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 (in millions) Beginning balance $ 33 $ 33 $ 33 $ 33 Credit losses for which an other-than-temporary impairment was previously recognized — — — — Ending balance $ 33 $ 33 $ 33 $ 33 Net realized gains and losses on Available-for-Sale securities, determined using the specific identification method, recognized in net realized investment gains (losses) were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 (in millions) Gross realized investment gains $ 5 $ 1 $ 18 $ 23 Gross realized investment losses (3 ) (4 ) (11 ) (9 ) Other-than-temporary impairments — (7 ) — (7 ) Total $ 2 $ (10 ) $ 7 $ 7 Other-than-temporary impairments for the three months and nine months ended September 30, 2015 primarily related to credit losses on corporate debt securities. See Note 13 for a rollforward of net unrealized investment gains (losses) included in AOCI. Available-for-Sale securities by contractual maturity at September 30, 2016 were as follows: Amortized Cost Fair Value (in millions) Due within one year $ 503 $ 516 Due after one year through five years 5,964 6,414 Due after five years through 10 years 4,270 4,538 Due after 10 years 3,724 4,675 14,461 16,143 Residential mortgage backed securities 3,401 3,510 Commercial mortgage backed securities 2,524 2,650 Asset backed securities 805 834 Common stocks 3 8 Total $ 21,194 $ 23,145 Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. Residential mortgage backed securities, commercial mortgage backed securities and asset backed securities are not due at a single maturity date. As such, these securities, as well as common stocks, were not included in the maturities distribution. The following is a summary of net investment income: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 (in millions) Fixed maturities $ 249 $ 257 $ 751 $ 783 Mortgage loans 38 43 115 134 Other investments (4 ) 6 4 14 283 306 870 931 Less: investment expenses 7 10 20 27 Total $ 276 $ 296 $ 850 $ 904 |
Financing Receivables
Financing Receivables | 9 Months Ended |
Sep. 30, 2016 | |
Receivables [Abstract] | |
Financing Receivables [Text Block] | Financing Receivables The Company’s financing receivables include commercial and residential mortgage loans, syndicated loans and policy loans. Syndicated loans are reflected in other investments. Allowance for Loan Losses Policy loans do not exceed the cash surrender value of the policy at origination. As there is minimal risk of loss related to policy loans, the Company does not record an allowance for loan losses for policy loans. The Company does not currently have an allowance for loan losses for residential mortgage loans. The following table presents a rollforward of the allowance for loan losses for the nine months ended and the ending balance of the allowance for loan losses by impairment method: September 30, 2016 2015 (in millions) Beginning balance $ 25 $ 28 Charge-offs (1 ) (3 ) Provisions 1 1 Ending balance $ 25 $ 26 Individually evaluated for impairment $ 2 $ 5 Collectively evaluated for impairment 23 21 The recorded investment in financing receivables by impairment method was as follows: September 30, December 31, 2015 (in millions) Individually evaluated for impairment $ 14 $ 25 Collectively evaluated for impairment 3,284 3,657 Total $ 3,298 $ 3,682 As of September 30, 2016 and December 31, 2015 , the Company’s recorded investment in financing receivables individually evaluated for impairment for which there was no related allowance for loan losses was $9 million and $12 million , respectively. During the three months ended September 30, 2016 and 2015 , the Company purchased $17 million and $46 million , respectively, and sold nil and $8 million , respectively, of loans. During the nine months ended September 30, 2016 and 2015 , the Company purchased $54 million and $82 million , respectively, and sold $250 million and $15 million , respectively, of loans. The loans sold during the nine months ended September 30, 2016 consisted of residential mortgage loans, which were sold in the first quarter of 2016. See below for additional discussion on the sale of these loans. Credit Quality Information Nonperforming loans, which are generally loans 90 days or more past due, were $5 million and $8 million as of September 30, 2016 and December 31, 2015 , respectively. All other loans were considered to be performing. Commercial Mortgage Loans The Company reviews the credit worthiness of the borrower and the performance of the underlying properties in order to determine the risk of loss on commercial mortgage loans. Based on this review, the commercial mortgage loans are assigned an internal risk rating, which management updates as necessary. Commercial mortgage loans which management has assigned its highest risk rating were nil and 1% of total commercial mortgage loans at September 30, 2016 and December 31, 2015 , respectively. Loans with the highest risk rating represent distressed loans which the Company has identified as impaired or expects to become delinquent or enter into foreclosure within the next six months. In addition, the Company reviews the concentrations of credit risk by region and property type. Concentrations of credit risk of commercial mortgage loans by U.S. region were as follows: Loans Percentage September 30, 2016 December 31, 2015 September 30, 2016 December 31, 2015 (in millions) South Atlantic $ 740 $ 746 29 % 28 % Pacific 702 709 27 27 Mountain 254 242 10 9 West North Central 216 217 8 8 Middle Atlantic 190 203 7 8 East North Central 199 208 8 8 West South Central 119 128 5 5 New England 92 115 3 4 East South Central 70 68 3 3 2,582 2,636 100 % 100 % Less: allowance for loan losses 19 19 Total $ 2,563 $ 2,617 Concentrations of credit risk of commercial mortgage loans by property type were as follows: Loans Percentage September 30, 2016 December 31, 2015 September 30, 2016 December 31, 2015 (in millions) Retail $ 927 $ 947 36 % 36 % Office 480 522 19 20 Apartments 475 473 18 18 Industrial 430 444 17 17 Mixed use 37 35 1 1 Hotel 42 34 2 1 Other 191 181 7 7 2,582 2,636 100 % 100 % Less: allowance for loan losses 19 19 Total $ 2,563 $ 2,617 Residential Mortgage Loans The recorded investment in residential mortgage loans at September 30, 2016 and December 31, 2015 was $307 million and $594 million , respectively. The Company considers the credit worthiness of borrowers (FICO score), collateral characteristics such as loan-to-value (“LTV”) and geographic concentration to determine when an amount for an allowance for loan losses for residential mortgage loans is appropriate. At a minimum, management updates FICO scores and LTV ratios semiannually. As of September 30, 2016 and December 31, 2015 , no allowance for loan losses was recorded. On March 30, 2016, the Company sold $250 million (amortized cost, net of unamortized discount) of its residential mortgage loans to an unaffiliated third party. The Company received cash proceeds of $260 million and recognized a gain of $10 million . As a result of the sale, the Company’s unamortized discount related to its residential mortgage loans was reduced from $21 million at December 31, 2015 to nil . As of both September 30, 2016 and December 31, 2015 , approximately 4% of residential mortgage loans had FICO scores below 640 . As of September 30, 2016 and December 31, 2015 , nil and approximately 1% , respectively, of the Company’s residential mortgage loans had LTV ratios greater than 90% . The Company’s most significant geographic concentration for residential mortgage loans is in California representing 52% and 37% of the portfolio as of September 30, 2016 and December 31, 2015 , respectively, and in Colorado and Washington representing 19% and 13% , respectively, of the portfolio as of September 30, 2016 . No other state represents more than 10% of the total residential mortgage loan portfolio. Syndicated Loans The recorded investment in syndicated loans at September 30, 2016 and December 31, 2015 was $409 million and $452 million , respectively. The Company’s syndicated loan portfolio is diversified across industries and issuers. The primary credit indicator for syndicated loans is whether the loans are performing in accordance with the contractual terms of the syndication. Total nonperforming syndicated loans at September 30, 2016 and December 31, 2015 were $4 million and $5 million , respectively. Troubled Debt Restructurings The recorded investment in restructured loans was not material as of September 30, 2016 and December 31, 2015 . The troubled debt restructurings did not have a material impact to the Company’s allowance for loan losses or income recognized for the three months and nine months ended September 30, 2016 and 2015 . There are no commitments to lend additional funds to borrowers whose loans have been restructured. |
Deferred Acquisition Costs and
Deferred Acquisition Costs and Deferred Sales Inducement Costs | 9 Months Ended |
Sep. 30, 2016 | |
Deferred Acquisition Costs and Deferred Sales Inducement Costs | |
Deferred Acquisition Costs and Deferred Sales Inducement Costs | Deferred Acquisition Costs and Deferred Sales Inducement Costs In the third quarter of the year, management conducts its annual review of insurance and annuity valuation assumptions relative to current experience and management expectations. To the extent that expectations change as a result of this review, management updates valuation assumptions. The impact of unlocking in the third quarter of 2016 primarily reflected continued low interest rates that more than offset benefits from persistency on annuity contracts without living benefits. In addition, the Company’s review of its closed LTC business resulted in loss recognition due to continued low interest rates, higher morbidity and higher reinsurance expenses, slightly offset by premium increases. The impact of unlocking in the third quarter of 2015 primarily reflected the difference between the Company’s previously assumed interest rates versus the low interest rate environment partially offset by improved persistency. The balances of and changes in DAC were as follows: 2016 2015 (in millions) Balance at January 1 $ 2,688 $ 2,576 Capitalization of acquisition costs 212 (1) 201 Amortization, excluding the impact of valuation assumptions review (218 ) (235 ) Amortization, impact of valuation assumptions review (81 ) (6 ) Impact of change in net unrealized securities (gains) losses (105 ) 64 Balance at September 30 $ 2,496 $ 2,600 (1) Includes a $27 million benefit related to the write-off of the deferred reinsurance liability in connection with the loss recognition on LTC business. The balances of and changes in DSIC, which is included in other assets, were as follows: 2016 2015 (in millions) Balance at January 1 $ 334 $ 361 Capitalization of sales inducement costs 4 3 Amortization, excluding the impact of valuation assumptions review (32 ) (43 ) Amortization, impact of valuation assumptions review 4 1 Impact of change in net unrealized securities (gains) losses (14 ) 10 Balance at September 30 $ 296 $ 332 |
Policyholder Account Balances,
Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities | 9 Months Ended |
Sep. 30, 2016 | |
Policyholder Account Balances, Future Policy Benefits and Claims & Separate Account Liabilities | |
Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities | Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities Policyholder account balances, future policy benefits and claims consisted of the following: September 30, December 31, 2015 (in millions) Policyholder account balances Fixed annuities $ 10,729 $ 11,239 Variable annuity fixed sub-accounts 5,152 4,912 Variable universal life (“VUL”)/universal life (“UL”) insurance 2,978 2,897 Indexed universal life (“IUL”) insurance 975 808 Other life insurance 766 794 Total policyholder account balances 20,600 20,650 Future policy benefits Variable annuity guaranteed minimum withdrawal benefits (“GMWB”) 2,113 1,057 Variable annuity guaranteed minimum accumulation benefits (“GMAB”) 8 — Other annuity liabilities 143 31 Fixed annuities life contingent liabilities 1,496 1,501 Equity indexed annuities (“EIA”) 26 27 Life, disability income and long term care insurance 5,561 5,112 VUL/UL and other life insurance additional liabilities 598 452 Total future policy benefits 9,945 8,180 Policy claims and other policyholders’ funds 210 199 Total policyholder account balances, future policy benefits and claims $ 30,755 $ 29,029 Separate account liabilities consisted of the following: September 30, December 31, 2015 (in millions) Variable annuity $ 70,715 $ 69,333 VUL insurance 6,710 6,637 Other insurance 33 34 Total $ 77,458 $ 76,004 |
Variable Annuity and Insurance
Variable Annuity and Insurance Guarantees | 9 Months Ended |
Sep. 30, 2016 | |
Insurance [Abstract] | |
Variable Annuity and Insurance Guarantees | Variable Annuity and Insurance Guarantees The majority of the variable annuity contracts offered by the Company contain guaranteed minimum death benefit (“GMDB”) provisions. The Company also offers variable annuities with death benefit provisions that gross up the amount payable by a certain percentage of contract earnings, which are referred to as gain gross-up (“GGU”) benefits. In addition, the Company offers contracts with GMWB and GMAB provisions. The Company previously offered contracts containing guaranteed minimum income benefit (“GMIB”) provisions. Certain UL policies offered by the Company provide secondary guarantee benefits. The secondary guarantee ensures that, subject to specified conditions, the policy will not terminate and will continue to provide a death benefit even if there is insufficient policy value to cover the monthly deductions and charges. The following table provides information related to variable annuity guarantees for which the Company has established additional liabilities: Variable Annuity Guarantees by Benefit Type (1) September 30, 2016 December 31, 2015 Total Contract Value Contract Value in Separate Accounts Net Amount at Risk Weighted Average Attained Age Total Contract Value Contract Value in Separate Accounts Net Amount at Risk Weighted Average Attained Age (in millions, except age) GMDB: Return of premium $ 56,748 $ 54,787 $ 144 65 $ 54,716 $ 52,871 $ 297 65 Five/six-year reset 9,052 6,371 23 66 9,307 6,731 78 65 One-year ratchet 6,614 6,237 80 67 6,747 6,379 266 67 Five-year ratchet 1,587 1,527 5 64 1,613 1,556 20 63 Other 954 932 73 71 887 869 82 71 Total — GMDB $ 74,955 $ 69,854 $ 325 65 $ 73,270 $ 68,406 $ 743 65 GGU death benefit $ 1,063 $ 1,011 $ 111 68 $ 1,056 $ 1,004 $ 113 67 GMIB $ 251 $ 233 $ 12 68 $ 270 $ 251 $ 17 68 GMWB: GMWB $ 2,805 $ 2,796 $ 2 70 $ 3,118 $ 3,109 $ 2 69 GMWB for life 39,652 39,508 356 66 37,301 37,179 330 66 Total — GMWB $ 42,457 $ 42,304 $ 358 66 $ 40,419 $ 40,288 $ 332 66 GMAB $ 3,689 $ 3,681 $ 14 59 $ 4,018 $ 4,006 $ 31 58 (1) Individual variable annuity contracts may have more than one guarantee and therefore may be included in more than one benefit type. Variable annuity contracts for which the death benefit equals the account value are not shown in this table. The net amount at risk for GMDB, GGU and GMAB guarantees is defined as the current guaranteed benefit amount in excess of the current contract value. The net amount at risk for GMIB and GMWB guarantees is defined as the greater of the present value of the minimum guaranteed withdrawal payments less the current contract value or zero. The present value is calculated using a discount rate that is consistent with assumptions embedded in the Company’s annuity pricing models. The following table provides information related to insurance guarantees for which the Company has established additional liabilities: September 30, 2016 December 31, 2015 Net Amount at Risk Weighted Average Attained Age Net Amount at Risk Weighted Average Attained Age (in millions, except age) UL secondary guarantees $ 6,339 64 $ 6,601 63 The net amount at risk for UL secondary guarantees is defined as the current guaranteed death benefit amount in excess of the current policyholder account balance. Changes in additional liabilities (contra liabilities) for variable annuity and insurance guarantees were as follows: GMDB & GGU GMIB GMWB (1) GMAB (1) UL (in millions) Balance at January 1, 2015 $ 9 $ 7 $ 693 $ (41 ) $ 263 Incurred claims 9 — 580 72 70 Paid claims (3 ) — — — (19 ) Balance at September 30, 2015 $ 15 $ 7 $ 1,273 $ 31 $ 314 Balance at January 1, 2016 $ 14 $ 8 $ 1,057 $ — $ 332 Incurred claims 10 — 1,056 9 99 Paid claims (7 ) — — (1 ) (18 ) Balance at September 30, 2016 $ 17 $ 8 $ 2,113 $ 8 $ 413 (1) The incurred claims for GMWB and GMAB represent the total change in the liabilities (contra liabilities). The liabilities for guaranteed benefits are supported by general account assets. The following table summarizes the distribution of separate account balances by asset type for variable annuity contracts providing guaranteed benefits: September 30, December 31, 2015 (in millions) Mutual funds: Equity $ 40,872 $ 39,806 Bond 23,875 23,700 Other 5,426 5,241 Total mutual funds $ 70,173 $ 68,747 |
Short-term Borrowings
Short-term Borrowings | 9 Months Ended |
Sep. 30, 2016 | |
Short-term Debt [Abstract] | |
Short-term Borrowings [Text Block] | Short-term Borrowings The Company enters into repurchase agreements in exchange for cash which it accounts for as secured borrowings and has pledged Available-for-Sale securities to collateralize its obligations under the repurchase agreements. As of September 30, 2016 and December 31, 2015 , the Company has pledged $31 million and $30 million , respectively, of agency residential mortgage backed securities and $21 million and $22 million , respectively, of commercial mortgage backed securities. The amount of the Company’s liability including accrued interest as of both September 30, 2016 and December 31, 2015 was $50 million . The remaining maturity of outstanding repurchase agreements was less than two months and less than one month as of September 30, 2016 and December 31, 2015 , respectively. The weighted average annualized interest rate on the repurchase agreements held as of September 30, 2016 and December 31, 2015 was 0.7% and 0.5% , respectively. RiverSource Life Insurance Company is a member of the Federal Home Loan Bank (“FHLB”) of Des Moines which provides access to collateralized borrowings. The Company has pledged Available-for-Sale securities consisting of commercial mortgage backed securities to collateralize its obligation under these borrowings. The fair value of the securities pledged is recorded in investments and was $751 million and $290 million as of September 30, 2016 and December 31, 2015 , respectively. The amount of the Company’s liability including accrued interest as of both September 30, 2016 and December 31, 2015 was $150 million . The remaining maturity of outstanding FHLB advances was less than three months as of both September 30, 2016 and December 31, 2015 . The weighted average annualized interest rate on the FHLB advances held as of September 30, 2016 and December 31, 2015 was 0.6% and 0.5% , respectively. |
Fair Values of Assets and Liabi
Fair Values of Assets and Liabilities | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Values of Assets and Liabilities [Table Text Block] | Fair Values of Assets and Liabilities GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date; that is, an exit price. The exit price assumes the asset or liability is not exchanged subject to a forced liquidation or distressed sale. Valuation Hierarchy The Company categorizes its fair value measurements according to a three-level hierarchy. The hierarchy prioritizes the inputs used by the Company’s valuation techniques. A level is assigned to each fair value measurement based on the lowest level input that is significant to the fair value measurement in its entirety. The three levels of the fair value hierarchy are defined as follows: Level 1 Unadjusted quoted prices for identical assets or liabilities in active markets that are accessible at the measurement date. Level 2 Prices or valuations based on observable inputs other than quoted prices in active markets for identical assets and liabilities. Level 3 Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable. The following tables present the balances of assets and liabilities measured at fair value on a recurring basis: September 30, 2016 Level 1 Level 2 Level 3 Total (in millions) Assets Available-for-Sale securities: Fixed maturities: Corporate debt securities $ — $ 13,380 $ 1,193 $ 14,573 Residential mortgage backed securities — 3,390 120 3,510 Commercial mortgage backed securities — 2,617 33 2,650 State and municipal obligations — 1,290 — 1,290 Asset backed securities — 716 118 834 Foreign government bonds and obligations — 275 — 275 U.S. government and agencies obligations 3 2 — 5 Total Available-for-Sale securities: Fixed maturities 3 21,670 1,464 23,137 Common stocks 3 5 — 8 Cash equivalents — 928 — 928 Other assets: Interest rate derivative contracts 2 3,591 — 3,593 Equity derivative contracts 56 1,357 — 1,413 Credit derivative contracts — 1 — 1 Foreign exchange derivative contracts 1 70 — 71 Total other assets 59 5,019 — 5,078 Separate account assets measured at NAV 77,458 (1) Total assets at fair value $ 65 $ 27,622 $ 1,464 $ 106,609 Liabilities Policyholder account balances, future policy benefits and claims: EIA embedded derivatives $ — $ 5 $ — $ 5 IUL embedded derivatives — — 438 438 GMWB and GMAB embedded derivatives — — 1,756 1,756 (2) Total policyholder account balances, future policy benefits and claims — 5 2,194 2,199 (3) Other liabilities: Interest rate derivative contracts — 1,603 — 1,603 Equity derivative contracts 3 1,843 — 1,846 Foreign exchange derivative contracts — 35 — 35 Other derivative contracts 1 — — 1 Total other liabilities 4 3,481 — 3,485 Total liabilities at fair value $ 4 $ 3,486 $ 2,194 $ 5,684 (1) Amounts are comprised of certain investments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient and have not been classified in the fair value hierarchy. See Note 2 for further information. (2) The fair value of the GMWB and GMAB embedded derivatives included $1.8 billion of individual contracts in a liability position and $73 million of individual contracts in an asset position. (3) The Company’s adjustment for nonperformance risk resulted in a $764 million cumulative decrease to the embedded derivatives. December 31, 2015 Level 1 Level 2 Level 3 Total (in millions) Assets Available-for-Sale securities: Fixed maturities: Corporate debt securities $ — $ 13,139 $ 1,235 $ 14,374 Residential mortgage backed securities — 3,054 21 3,075 Commercial mortgage backed securities — 2,133 3 2,136 State and municipal obligations — 1,149 — 1,149 Asset backed securities — 643 133 776 Foreign government bonds and obligations — 223 — 223 U.S. government and agencies obligations 4 35 — 39 Total Available-for-Sale securities: Fixed maturities 4 20,376 1,392 21,772 Common stocks 3 4 — 7 Cash equivalents 48 285 — 333 Other assets: Interest rate derivative contracts — 1,882 — 1,882 Equity derivative contracts 92 1,477 — 1,569 Credit derivative contracts — 2 — 2 Foreign exchange derivative contracts 1 54 — 55 Total other assets 93 3,415 — 3,508 Separate account assets measured at NAV 76,004 (1) Total assets at fair value $ 148 $ 24,080 $ 1,392 $ 101,624 Liabilities Policyholder account balances, future policy benefits and claims: EIA embedded derivatives $ — $ 5 $ — $ 5 IUL embedded derivatives — — 364 364 GMWB and GMAB embedded derivatives — — 851 851 (2) Total policyholder account balances, future policy benefits and claims — 5 1,215 1,220 (3) Other liabilities: Interest rate derivative contracts — 948 — 948 Equity derivative contracts 45 1,930 — 1,975 Foreign exchange derivative contracts 1 16 — 17 Total other liabilities 46 2,894 — 2,940 Total liabilities at fair value $ 46 $ 2,899 $ 1,215 $ 4,160 (1) Amounts are comprised of certain investments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient and have not been classified in the fair value hierarchy. See Note 2 for further information. (2) The fair value of the GMWB and GMAB embedded derivatives included $994 million of individual contracts in a liability position and $143 million of individual contracts in an asset position. (3) The Company’s adjustment for nonperformance risk resulted in a $398 million cumulative decrease to the embedded derivatives. The following tables provide a summary of changes in Level 3 assets and liabilities measured at fair value on a recurring basis: Available-for-Sale Securities: Fixed Maturities Other Derivative Contracts Corporate Debt Securities Residential Mortgage Backed Securities Commercial Mortgage Backed Securities Asset Backed Securities Total (in millions) Balance, July 1, 2016 $ 1,197 $ 15 $ — $ 130 $ 1,342 $ 2 Total gains (losses) included in: Net income (1 ) — — 1 — (1) (2 ) (2) Other comprehensive income (2 ) — — — (2 ) — Purchases 20 106 33 — 159 — Settlements (21 ) (1 ) — (1 ) (23 ) — Transfers out of Level 3 — — — (12 ) (12 ) — Balance, September 30, 2016 $ 1,193 $ 120 $ 33 $ 118 $ 1,464 $ — Changes in unrealized gains (losses) relating to assets held at September 30, 2016 included in: Net investment income $ (1 ) $ — $ — $ 1 $ — $ — Benefits, claims, losses and settlement expenses — — — — — (2 ) (1) Included in net investment income in the Consolidated Statements of Income. (2) Included in benefits, claims, losses and settlement expenses in the Consolidated Statements of Income. Policyholder Account Balances, Future Policy Benefits and Claims IUL Embedded Derivatives GMWB and GMAB Embedded Derivatives Total (in millions) Balance, July 1, 2016 $ 408 $ 1,965 $ 2,373 Total (gains) losses included in: Net income 12 (1) (280 ) (2) (268 ) Issues 25 77 102 Settlements (7 ) (6 ) (13 ) Balance, September 30, 2016 $ 438 $ 1,756 $ 2,194 Changes in unrealized (gains) losses relating to liabilities held at September 30, 2016 included in: Benefits, claims, losses and settlement expenses $ — $ (267 ) $ (267 ) Interest credited to fixed accounts 12 — 12 (1) Included in interest credited to fixed accounts in the Consolidated Statements of Income. (2) Included in benefits, claims, losses and settlement expenses in the Consolidated Statements of Income. Available-for-Sale Securities: Fixed Maturities Corporate Debt Securities Residential Mortgage Backed Securities Commercial Mortgage Backed Securities Asset Backed Securities Total (in millions) Balance, July 1, 2015 $ 1,339 $ 8 $ 34 $ 118 $ 1,499 Total gains (losses) included in: Net income (1 ) — — 1 — (1) Other comprehensive income (3 ) — — 2 (1 ) Purchases 91 37 — — 128 Settlements (89 ) (1 ) (2 ) — (92 ) Transfers out of Level 3 — — (27 ) (13 ) (40 ) Balance, September 30, 2015 $ 1,337 $ 44 $ 5 $ 108 $ 1,494 Changes in unrealized gains (losses) relating to assets held at September 30, 2015 included in: Net investment income $ (1 ) $ — $ — $ 1 $ — (1) Included in net investment income in the Consolidated Statements of Income. Policyholder Account Balances, Future Policy Benefits and Claims IUL Embedded Derivatives GMWB and GMAB Embedded Derivatives Total (in millions) Balance, July 1, 2015 $ 292 $ 235 $ 527 Total (gains) losses included in: Net income (1 ) (1) 805 (2) 804 Issues 31 69 100 Settlements (5 ) (2 ) (7 ) Balance, September 30, 2015 $ 317 $ 1,107 $ 1,424 Changes in unrealized (gains) losses relating to liabilities held at September 30, 2015 included in: Benefits, claims, losses and settlement expenses $ — $ 811 $ 811 Interest credited to fixed accounts (1 ) — (1 ) (1) Included in interest credited to fixed accounts in the Consolidated Statements of Income. (2) Included in benefits, claims, losses and settlement expenses in the Consolidated Statements of Income. Available-for-Sale Securities: Fixed Maturities Other Derivative Contracts Corporate Debt Securities Residential Mortgage Backed Securities Commercial Mortgage Backed Securities Asset Backed Securities Total (in millions) Balance, January 1, 2016 $ 1,235 $ 21 $ 3 $ 133 $ 1,392 $ — Total gains (losses) included in: Net income (1 ) — — 1 — (1) (2 ) (2) Other comprehensive income 26 — — — 26 — Purchases 34 106 42 — 182 2 Settlements (101 ) (7 ) (3 ) (1 ) (112 ) — Transfers into Level 3 — — — 12 12 — Transfers out of Level 3 — — (9 ) (27 ) (36 ) — Balance, September 30, 2016 $ 1,193 $ 120 $ 33 $ 118 $ 1,464 $ — Changes in unrealized gains (losses) relating to assets held at September 30, 2016 included in: Net investment income $ (1 ) $ — $ — $ 1 $ — $ — Benefits, claims, losses and settlement expenses — — — — — (2 ) (1) Included in net investment income in the Consolidated Statements of Income. (2) Included in benefits, claims, losses and settlement expenses in the Consolidated Statements of Income. Policyholder Account Balances, Future Policy Benefits and Claims IUL Embedded Derivatives GMWB and GMAB Embedded Derivatives Total (in millions) Balance, January 1, 2016 $ 364 $ 851 $ 1,215 Total losses included in: Net income 8 (1) 708 (2) 716 Issues 86 215 301 Settlements (20 ) (18 ) (38 ) Balance, September 30, 2016 $ 438 $ 1,756 $ 2,194 Changes in unrealized losses relating to liabilities held at September 30, 2016 included in: Benefits, claims, losses and settlement expenses $ — $ 830 $ 830 Interest credited to fixed accounts 8 — 8 (1) Included in interest credited to fixed accounts in the Consolidated Statements of Income. (2) Included in benefits, claims, losses and settlement expenses in the Consolidated Statements of Income. Available-for-Sale Securities: Fixed Maturities Common Stocks Corporate Debt Securities Residential Mortgage Backed Securities Commercial Mortgage Backed Securities Asset Backed Securities Total (in millions) Balance, January 1, 2015 $ 1,353 $ 9 $ 90 $ 151 $ 1,603 $ 1 Total gains (losses) included in: Net income (1 ) — — 1 — (1) — Other comprehensive income (10 ) — — 2 (8 ) (1 ) Purchases 142 68 31 1 242 — Settlements (147 ) (2 ) (4 ) (2 ) (155 ) — Transfers into Level 3 — — 6 — 6 — Transfers out of Level 3 — (31 ) (118 ) (45 ) (194 ) — Balance, September 30, 2015 $ 1,337 $ 44 $ 5 $ 108 $ 1,494 $ — Changes in unrealized gains (losses) relating to assets held at September 30, 2015 included in: Net investment income $ (1 ) $ — $ — $ 1 $ — $ — (1) Included in net investment income in the Consolidated Statements of Income. Policyholder Account Balances, Future Policy Benefits and Claims IUL Embedded Derivatives GMWB and GMAB Embedded Derivatives Total (in millions) Balance, January 1, 2015 $ 242 $ 479 $ 721 Total losses included in: Net income 13 (1) 426 (2) 439 Issues 76 197 273 Settlements (14 ) 5 (9 ) Balance, September 30, 2015 $ 317 $ 1,107 $ 1,424 Changes in unrealized losses relating to liabilities held at September 30, 2015 included in: Benefits, claims, losses and settlement expenses $ — $ 438 $ 438 Interest credited to fixed accounts 13 — 13 (1) Included in interest credited to fixed accounts in the Consolidated Statements of Income. (2) Included in benefits, claims, losses and settlement expenses in the Consolidated Statements of Income. The increase to pretax income of the Company’s adjustment for nonperformance risk on the fair value of its embedded derivatives was $8 million and $162 million , net of DAC, DSIC, unearned revenue amortization and the reinsurance accrual for the three months ended September 30, 2016 and 2015 , respectively. The increase to pretax income of the Company’s adjustment for nonperformance risk on the fair value of its embedded derivatives was $295 million and $154 million , net of DAC, DSIC, unearned revenue amortization and the reinsurance accrual for the nine months ended September 30, 2016 and 2015 , respectively. Securities transferred from Level 3 primarily represent securities with fair values that are now obtained from a third-party pricing service with observable inputs. Securities transferred to Level 3 represent securities with fair values that are now based on a single non-binding broker quote. The Company recognizes transfers between levels of the fair value hierarchy as of the beginning of the quarter in which each transfer occurred. For assets and liabilities held at the end of the reporting periods that are measured at fair value on a recurring basis, there were no transfers between Level 1 and Level 2. The following tables provide a summary of the significant unobservable inputs used in the fair value measurements developed by the Company or reasonably available to the Company of Level 3 assets and liabilities: September 30, 2016 Fair Value Valuation Technique Unobservable Input Range Weighted Average (in millions) Corporate debt securities (private placements) $ 1,190 Discounted cash flow Yield/spread to U.S. Treasuries 1.0 % - 3.0% 1.4 % IUL embedded derivatives $ 438 Discounted cash flow Nonperformance risk (1) 89 bps GMWB and GMAB embedded derivatives $ 1,756 Discounted cash flow Utilization of guaranteed withdrawals (2) 0.0 % - 75.6% Surrender rate 0.1 % - 66.4% Market volatility (3) 5.4 % - 21.6% Nonperformance risk (1) 89 bps December 31, 2015 Fair Value Valuation Technique Unobservable Input Range Weighted Average (in millions) Corporate debt securities (private placements) $ 1,221 Discounted cash flow Yield/spread to U.S. Treasuries 1.1 % - 3.8% 1.6 % IUL embedded derivatives $ 364 Discounted cash flow Nonperformance risk (1) 68 bps GMWB and GMAB embedded derivatives $ 851 Discounted cash flow Utilization of guaranteed withdrawals (2) 0.0 % - 75.6% Surrender rate 0.0 % - 59.1% Market volatility (3) 5.4 % - 21.5% Nonperformance risk (1) 68 bps (1) The nonperformance risk is the spread added to the observable interest rates used in the valuation of the embedded derivatives. (2) The utilization of guaranteed withdrawals represents the percentage of contractholders that will begin withdrawing in any given year. (3) Market volatility is implied volatility of fund of funds and managed volatility funds. Level 3 measurements not included in the table above are obtained from non-binding broker quotes where unobservable inputs utilized in the fair value calculation are not reasonably available to the Company. Sensitivity of Fair Value Measurements to Changes in Unobservable Inputs Significant increases (decreases) in the yield/spread to U.S. Treasuries used in the fair value measurement of Level 3 corporate debt securities in isolation would result in a significantly lower (higher) fair value measurement. Significant increases (decreases) in nonperformance risk used in the fair value measurement of the IUL embedded derivatives in isolation would result in a significantly lower (higher) fair value measurement. Significant increases (decreases) in utilization and volatility used in the fair value measurement of the GMWB and GMAB embedded derivatives in isolation would result in a significantly higher (lower) liability value. Significant increases (decreases) in nonperformance risk and surrender rate used in the fair value measurement of the GMWB and GMAB embedded derivatives in isolation would result in a significantly lower (higher) liability value. Utilization of guaranteed withdrawals and surrender rates vary with the type of rider, the duration of the policy, the age of the contractholder, the distribution channel and whether the value of the guaranteed benefit exceeds the contract accumulation value. Determination of Fair Value The Company uses valuation techniques consistent with the market and income approaches to measure the fair value of its assets and liabilities. The Company’s market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. The Company’s income approach uses valuation techniques to convert future projected cash flows to a single discounted present value amount. When applying either approach, the Company maximizes the use of observable inputs and minimizes the use of unobservable inputs. The following is a description of the valuation techniques used to measure fair value and the general classification of these instruments pursuant to the fair value hierarchy. Assets Cash Equivalents Cash equivalents include highly liquid investments with original maturities of 90 days or less. Actively traded money market funds are measured at their NAV and classified as Level 1. The Company’s remaining cash equivalents are classified as Level 2 and measured at amortized cost, which is a reasonable estimate of fair value because of the short time between the purchase of the instrument and its expected realization. Available-for-Sale Securities When available, the fair value of securities is based on quoted prices in active markets. If quoted prices are not available, fair values are obtained from third-party pricing services, non-binding broker quotes, or other model-based valuation techniques. Level 1 securities primarily include U.S. Treasuries. Level 2 securities primarily include corporate bonds, residential mortgage backed securities, commercial mortgage backed securities, state and municipal obligations, asset backed securities and U.S. agency and foreign government securities. The fair value of these Level 2 securities is based on a market approach with prices obtained from third-party pricing services. Observable inputs used to value these securities can include, but are not limited to, reported trades, benchmark yields, issuer spreads and non-binding broker quotes. Level 3 securities primarily include certain corporate bonds, non-agency residential mortgage backed securities, commercial mortgage backed securities and asset backed securities. The fair value of corporate bonds, non-agency residential mortgage backed securities, commercial mortgage backed securities and certain asset backed securities classified as Level 3 is typically based on a single non-binding broker quote. The underlying inputs used for some of the non-binding broker quotes are not readily available to the Company. The Company’s privately placed corporate bonds are typically based on a single non-binding broker quote. In addition to the general pricing controls, the Company reviews the broker prices to ensure that the broker quotes are reasonable and, when available, compares prices of privately issued securities to public issues from the same issuer to ensure that the implicit illiquidity premium applied to the privately placed investment is reasonable considering investment characteristics , maturity, and average life of the investment. In consideration of the above, management is responsible for the fair values recorded on the financial statements. Prices received from third-party pricing services are subjected to exception reporting that identifies investments with significant daily price movements as well as no movements. The Company reviews the exception reporting and resolves the exceptions through reaffirmation of the price or recording an appropriate fair value estimate. The Company also performs subsequent transaction testing. The Company performs annual due diligence of third-party pricing services. The Company’s due diligence procedures include assessing the vendor’s valuation qualifications, control environment, analysis of asset-class specific valuation methodologies, and understanding of sources of market observable assumptions and unobservable assumptions, if any, employed in the valuation methodology. The Company also considers the results of its exception reporting controls and any resulting price challenges that arise. Separate Account Assets The fair value of assets held by separate accounts is determined by the NAV of the funds in which those separate accounts are invested. The NAV is used as a practical expedient for fair value and represents the exit price for the separate account. Separate account assets are excluded from classification in the fair value hierarchy. Other Assets Derivatives that are measured using quoted prices in active markets, such as derivatives that are exchange-traded, are classified as Level 1 measurements. The variation margin on futures contracts is also classified as Level 1. The fair value of derivatives that are traded in less active over-the-counter (“OTC”) markets is generally measured using pricing models with market observable inputs such as interest rates and equity index levels. These measurements are classified as Level 2 within the fair value hierarchy and include swaps and the majority of options. The fair value of certain derivatives measured using pricing models which include significant unobservable inputs are classified as Level 3 within the fair value hierarchy. Other derivative contracts consist of the Company’s macro hedge program. See Note 12 for further information on the macro hedge program. The counterparties’ nonperformance risk associated with uncollateralized derivative assets was immaterial at September 30, 2016 and December 31, 2015 . See Note 11 and Note 12 for further information on the credit risk of derivative instruments and related collateral. Liabilities Policyholder Account Balances, Future Policy Benefits and Claims The Company values the embedded derivatives attributable to the provisions of certain variable annuity riders using internal valuation models. These models calculate fair value by discounting expected cash flows from benefits plus margins for profit, risk and expenses less embedded derivative fees. The projected cash flows used by these models include observable capital market assumptions and incorporate significant unobservable inputs related to contractholder behavior assumptions, implied volatility, and margins for risk, profit and expenses that the Company believes an exit market participant would expect. The fair value also reflects a current estimate of the Company’s nonperformance risk specific to these embedded derivatives. Given the significant unobservable inputs to this valuation, these measurements are classified as Level 3. The embedded derivatives attributable to these provisions are recorded in policyholder account balances, future policy benefits and claims. The Company uses various Black-Scholes calculations to determine the fair value of the embedded derivatives associated with the provisions of its EIA and IUL products. Significant inputs to the EIA calculation include observable interest rates, volatilities and equity index levels and, therefore, are classified as Level 2. The fair value of the IUL embedded derivatives includes significant observable interest rates, volatilities and equity index levels and the significant unobservable estimate of the Company’s nonperformance risk. Given the significance of the nonperformance risk assumption to the fair value, the IUL embedded derivatives are classified as Level 3. The embedded derivatives attributable to these provisions are recorded in policyholder account balances, future policy benefits and claims. The Company’s Corporate Actuarial Department calculates the fair value of the embedded derivatives on a monthly basis. During this process, control checks are performed to validate the completeness of the data. Actuarial management approves various components of the valuation along with the final results. The change in the fair value of the embedded derivatives is reviewed monthly with senior management. The Level 3 inputs into the valuation are consistent with the pricing assumptions and updated as experience develops. Significant unobservable inputs that reflect policyholder behavior are reviewed quarterly along with other valuation assumptions. Other Liabilities Derivatives that are measured using quoted prices in active markets, such as derivatives that are exchange-traded, are classified as Level 1 measurements. The variation margin on futures contracts is also classified as Level 1. The fair value of derivatives that are traded in less active OTC markets is generally measured using pricing models with market observable inputs such as interest rates and equity index levels. These measurements are classified as Level 2 within the fair value hierarchy and include swaps and the majority of options. Other derivative contracts consist of the Company’s macro hedge program. See Note 12 for further information on the macro hedge program. The Company’s nonperformance risk associated with uncollateralized derivative liabilities was immaterial at September 30, 2016 and December 31, 2015 . See Note 11 and Note 12 for further information on the credit risk of derivative instruments and related collateral. During the reporting periods, there were no material assets or liabilities measured at fair value on a nonrecurring basis. The following tables provide the carrying value and the estimated fair value of financial instruments that are not reported at fair value: September 30, 2016 Carrying Value Fair Value Level 1 Level 2 Level 3 Total (in millions) Financial Assets Mortgage loans, net $ 2,870 $ — $ — $ 2,991 $ 2,991 Policy loans 835 — — 810 810 Other investments 419 — 383 37 420 Financial Liabilities Policyholder account balances, future policy benefits and claims $ 11,071 $ — $ — $ 12,083 $ 12,083 Short-term borrowings 200 — 200 — 200 Other liabilities 160 — — 156 156 Separate account liabilities measured at NAV 344 344 (1) December 31, 2015 Carrying Value Fair Value Level 1 Level 2 Level 3 Total (in millions) Financial Assets Mortgage loans, net $ 3,211 $ — $ — $ 3,254 $ 3,254 Policy loans 823 — — 803 803 Other investments 463 — 416 33 449 Financial Liabilities Policyholder account balances, future policy benefits and claims $ 11,523 $ — $ — $ 12,424 $ 12,424 Short-term borrowings 200 — 200 — 200 Other liabilities 117 — — 113 113 Separate account liabilities measured at NAV 360 360 (1) (1) Amounts are comprised of certain investments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient and have not been classified in the fair value hierarchy. See Note 2 for further information. Mortgage Loans, Net The fair value of commercial mortgage loans, except those with significant credit deterioration, is determined by discounting contractual cash flows using discount rates that reflect current pricing for loans with similar remaining maturities, liquidity and characteristics including LTV ratio, occupancy rate, refinance risk, debt service coverage, location, and property condition. For commercial mortgage loans with significant credit deterioration, fair value is determined using the same adjustments as above with an additional adjustment for the Company’s estimate of the amount recoverable on the loan. The fair value of residential mortgage loans is determined by discounting estimated cash flows and incorporating adjustments for prepayment, administration expenses, loss severity and credit loss estimates, with discount rates based on the Company’s estimate of current market conditions. Given the significant unobservable inputs to the valuation of mortgage loans, these measurements are classified as Level 3. Policy Loans Policy loans represent loans made against the cash surrender value of the underlying life insurance or annuity product. These loans and the related interest are usually realized at death of the policyholder or contractholder or at surrender of the contract and are not transferable without the underlying insurance or annuity contract. The fair value of policy loans is determined by estimating expected cash flows discounted at rates based on the U.S. Treasury curve. Policy loans are classified as Level 3 as the discount rate used may be adjusted for the underlying performance of individual policies. Other Investments Other investments primarily consist of syndicated loans and an investment in FHLB. The fair value of syndicated loans is obtained from a third-party pricing service or non-binding broker quotes. Syndicated loans that are priced using a market approach with observable inputs are classified as Level 2 and syndicated loans priced using a single non-binding broker quote are classified as Level 3. The fair value of the investment in FHLB is approximated by the carrying value and classified as Level 3 due to restrictions on transfer and lack of liquidity in the primary market for this asset. Policyholder Account Balances, Future Policy Benefits and Claims The fair value of fixed annuities in deferral status is determined by discounting cash flows using a risk neutral discount rate with adjustments for profit margin, expense margin, early policy surrender behavior, a margin for adverse deviation from estimated early policy surrender behavior and the Company’s nonperformance risk specific to these liabilities. The fair value of non-life contingent fixed annuities in payout status, EIA host contracts and the fixed portion of a small number of variable annuity contracts classified as investment contracts is determined in a similar manner. Given the use of significant unobservable inputs to these valuations, the measurements are classified as Level 3. Short-term Borrowings The fair value of short-term borrowings is obtained from a third-party pricing service. A nonperformance adjustment is not included as collateral requirements for these borrowings minimize the nonperformance risk. The fair value of short-term borrowings is classified as Level 2. Other Liabilities Other liabilities consist of future funding commitments to affordable housing partnerships and other real estate partnerships. The fair value of these future funding commitments is determined by discounting cash flows. The fair value of these commitments includes an adjustment for the Company’s nonperformance risk and is classified as Level 3 due to the use of the significant unobservable input. Separate Account Liabilities Certain separate account liabilities are classified as investment contracts and are carried at an amount equal to the related separate account assets. The NAV of the related separate account assets is used as a practical expedient for fair value and represents the exit price for the separate account liabilities. Separate account liabilities are excluded from classification in the fair value hierarchy. |
Offsetting Assets and Liabiliti
Offsetting Assets and Liabilities | 9 Months Ended |
Sep. 30, 2016 | |
Offsetting [Abstract] | |
Offsetting Assets and Liabilities [Text Block] | Offsetting Assets and Liabilities Certain financial instruments and derivative instruments are eligible for offset in the Consolidated Balance Sheets. The Company’s derivative instruments and repurchase agreements are subject to master netting arrangements and collateral arrangements and qualify for offset. A master netting arrangement with a counterparty creates a right of offset for amounts due to and from that same counterparty that is enforceable in the event of a default or bankruptcy. The Company’s policy is to recognize amounts subject to master netting arrangements on a gross basis in the Consolidated Balance Sheets. The following tables present the gross and net information about the Company’s assets subject to master netting arrangements: September 30, 2016 Gross Amounts of Recognized Assets Gross Amounts Offset in the Consolidated Balance Sheets Amounts of Assets Presented in the Consolidated Balance Sheets Gross Amounts Not Offset Net Amount Financial Instruments (1) Cash Collateral Securities Collateral (in millions) Derivatives: OTC $ 3,957 $ — $ 3,957 $ (2,442 ) $ (659 ) $ (856 ) $ — OTC cleared 1,098 — 1,098 (874 ) (223 ) — 1 Exchange-traded 23 — 23 (2 ) — — 21 Total derivatives $ 5,078 $ — $ 5,078 $ (3,318 ) $ (882 ) $ (856 ) $ 22 December 31, 2015 Gross Amounts of Recognized Assets Gross Amounts Offset in the Consolidated Balance Sheets Amounts of Assets Presented in the Consolidated Balance Sheets Gross Amounts Not Offset Net Amount Financial Instruments (1) Cash Collateral Securities Collateral (in millions) Derivatives: OTC $ 3,051 $ — $ 3,051 $ (2,293 ) $ (354 ) $ (320 ) $ 84 OTC cleared 417 — 417 (313 ) (102 ) — 2 Exchange-traded 40 — 40 (3 ) — — 37 Total derivatives $ 3,508 $ — $ 3,508 $ (2,609 ) $ (456 ) $ (320 ) $ 123 (1) Represents the amount of assets that could be offset by liabilities with the same counterparty under master netting or similar arrangements that management elects not to offset on the Consolidated Balance Sheets. The following tables present the gross and net information about the Company’s liabilities subject to master netting arrangements: September 30, 2016 Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Consolidated Balance Sheets Amounts of Liabilities Presented in the Consolidated Balance Sheets Gross Amounts Not Offset Net Amount Financial Instruments (1) Cash Collateral Securities Collateral (in millions) Derivatives: OTC $ 2,609 $ — $ 2,609 $ (2,442 ) $ — $ (153 ) $ 14 OTC cleared 874 — 874 (874 ) — — — Exchange-traded 2 — 2 (2 ) — — — Total derivatives 3,485 — 3,485 (3,318 ) — (153 ) 14 Repurchase agreements 50 — 50 — — (50 ) — Total $ 3,535 $ — $ 3,535 $ (3,318 ) $ — $ (203 ) $ 14 December 31, 2015 Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Consolidated Balance Sheets Amounts of Liabilities Presented in the Consolidated Balance Sheets Gross Amounts Not Offset Net Amount Financial Instruments (1) Cash Collateral Securities Collateral (in millions) Derivatives: OTC $ 2,624 $ — $ 2,624 $ (2,293 ) $ — $ (331 ) $ — OTC cleared 313 — 313 (313 ) — — — Exchange-traded 3 — 3 (3 ) — — — Total derivatives 2,940 — 2,940 (2,609 ) — (331 ) — Repurchase agreements 50 — 50 — — (50 ) — Total $ 2,990 $ — $ 2,990 $ (2,609 ) $ — $ (381 ) $ — (1) Represents the amount of liabilities that could be offset by assets with the same counterparty under master netting or similar arrangements that management elects not to offset on the Consolidated Balance Sheets. In the tables above, the amounts of assets or liabilities presented in the Consolidated Balance Sheets are offset first by financial instruments that have the right of offset under master netting or similar arrangements, then any remaining amount is reduced by the amount of cash and securities collateral. The actual collateral may be greater than amounts presented in the tables. When the fair value of collateral accepted by the Company is less than the amount due to the Company, there is a risk of loss if the counterparty fails to perform or provide additional collateral. To mitigate this risk, the Company monitors collateral values regularly and requires additional collateral when necessary. When the value of collateral pledged by the Company declines, the Company may be required to post additional collateral. The Company’s freestanding derivative instruments are reflected in other assets and other liabilities. Repurchase agreements are reflected in short-term borrowings. See Note 12 for additional disclosures related to the Company’s derivative instruments and Note 9 for additional disclosures related to the Company’s repurchase agreements. |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 9 Months Ended |
Sep. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Activities [Text Block] | Derivatives and Hedging Activities Derivative instruments enable the Company to manage its exposure to various market risks. The value of such instruments is derived from an underlying variable or multiple variables, including equity and interest rate indices or prices. The Company primarily enters into derivative agreements for risk management purposes related to the Company’s products and operations. The Company’s freestanding derivative instruments are all subject to master netting arrangements. The Company’s policy on the recognition of derivatives on the Consolidated Balance Sheets is to not offset fair value amounts recognized for derivatives and collateral arrangements executed with the same counterparty under the same master netting arrangement. See Note 11 for additional information regarding the estimated fair value of the Company’s freestanding derivatives after considering the effect of master netting arrangements and collateral. The Company uses derivatives as economic hedges and accounting hedges. The following table presents the notional value and gross fair value of derivative instruments, including embedded derivatives: September 30, 2016 December 31, 2015 Notional Gross Fair Value Notional Gross Fair Value Assets (1) Liabilities (2) Assets (1) Liabilities (2) (in millions) Derivatives not designated as hedging instruments Interest rate contracts $ 73,844 $ 3,593 $ 1,603 $ 62,591 $ 1,882 $ 948 Equity contracts 59,441 1,413 1,846 69,009 1,569 1,975 Credit contracts 1,073 1 — 600 2 — Foreign exchange contracts 4,659 71 35 4,155 55 17 Other contracts 445 — 1 2,150 — — Total non-designated hedges 139,462 5,078 3,485 138,505 3,508 2,940 Embedded derivatives GMWB and GMAB (3) N/A — 1,756 N/A — 851 IUL N/A — 438 N/A — 364 EIA N/A — 5 N/A — 5 Total embedded derivatives N/A — 2,199 N/A — 1,220 Total derivatives $ 139,462 $ 5,078 $ 5,684 $ 138,505 $ 3,508 $ 4,160 N/A Not applicable. (1) The fair value of freestanding derivative assets is included in Other assets on the Consolidated Balance Sheets. (2) The fair value of freestanding derivative liabilities is included in Other liabilities on the Consolidated Balance Sheets. The fair value of GMWB and GMAB, IUL, and EIA embedded derivatives is included in Policyholder account balances, future policy benefits and claims on the Consolidated Balance Sheets. (3) The fair value of the GMWB and GMAB embedded derivatives at September 30, 2016 included $1.8 billion of individual contracts in a liability position and $73 million of individual contracts in an asset position. The fair value of the GMWB and GMAB embedded derivatives at December 31, 2015 included $994 million of individual contracts in a liability position and $143 million of individual contracts in an asset position. See Note 10 for additional information regarding the Company’s fair value measurement of derivative instruments. At September 30, 2016 and December 31, 2015 , investment securities with a fair value of $940 million and $323 million , respectively, wer e received as collateral to meet contractual obligations under derivative contracts, of which $670 million and $193 million , respectively, may be sold, pledged or rehypothecated by the Company. At September 30, 2016 and December 31, 2015 , the Company had sold, pledged, or rehypothecated $19 million and nil , respectively, of these securities. In addition, at September 30, 2016 and December 31, 2015 , non-cash collateral accepted was held in separate custodial accounts and was not included in the Company’s Consolidated Balance Sheets. The following tables present a summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Income: Interest Credited to Fixed Accounts Benefits, Claims, Losses and Settlement Expenses (in millions) Three Months Ended September 30, 2016 Interest rate contracts $ — $ (13 ) Equity contracts 12 (357 ) Credit contracts — (3 ) Foreign exchange contracts — (12 ) Other contracts — (9 ) GMWB and GMAB embedded derivatives — 209 IUL embedded derivatives (5 ) — Total gain (loss) $ 7 $ (185 ) Nine Months Ended September 30, 2016 Interest rate contracts $ — $ 1,191 Equity contracts 10 (518 ) Credit contracts — (34 ) Foreign exchange contracts — (66 ) Other contracts — (9 ) GMWB and GMAB embedded derivatives — (905 ) IUL embedded derivatives 12 — Total gain (loss) $ 22 $ (341 ) Three Months Ended September 30, 2015 Interest rate contracts $ — $ 536 Equity contracts (16 ) 328 Credit contracts — (10 ) Foreign exchange contracts — 6 Other contracts — (13 ) GMWB and GMAB embedded derivatives — (872 ) IUL embedded derivatives 6 — EIA embedded derivatives 1 — Total loss $ (9 ) $ (25 ) Nine Months Ended September 30, 2015 Interest rate contracts $ — $ 360 Equity contracts (17 ) 69 Credit contracts — (5 ) Foreign exchange contracts — (2 ) Other contracts — (13 ) GMWB and GMAB embedded derivatives — (628 ) IUL embedded derivatives 1 — EIA embedded derivatives 1 — Total loss $ (15 ) $ (219 ) The Company holds derivative instruments that either do not qualify or are not designated for hedge accounting treatment. These derivative instruments are used as economic hedges of equity, interest rate, credit and foreign currency exchange rate risk related to various products and transactions of the Company. Certain annuity contracts contain GMWB or GMAB provisions, which guarantee the right to make limited partial withdrawals each contract year regardless of the volatility inherent in the underlying investments or guarantee a minimum accumulation value of consideration received at the beginning of the contract period, after a specified holding period, respectively. The GMAB and non-life contingent GMWB provisions are considered embedded derivatives, which are bifurcated from their host contracts for valuation purposes and reported on the Consolidated Balance Sheets at fair value with changes in fair value reported in earnings. The Company economically hedges the exposure related to GMAB and non-life contingent GMWB provisions primarily using futures, options, interest rate swaptions, interest rate swaps, total return swaps and variance swaps. The deferred premium associated with certain of the above options is paid or received semi-annually over the life of the option contract or at maturity. The following is a summary of the payments the Company is scheduled to make and receive for these options: Premiums Payable Premiums Receivable (in millions) 2016 (1) $ 89 $ 31 2017 257 76 2018 214 130 2019 260 131 2020 179 57 2021-2026 741 202 Total $ 1,740 $ 627 (1) 2016 amounts represent the amounts payable and receivable for the period from October 1, 2016 to December 31, 2016 . Actual timing and payment amounts may differ due to future contract settlements, modifications or exercises of options prior to the full premium being paid or received. The Company has a macro hedge program to provide protection against the statutory tail scenario risk arising from variable annuity reserves on its statutory surplus and to cover some of the residual risks not covered by other hedging activities. As a means of economically hedging these risks, the Company uses futures, options and swaptions. Certain of the macro hedge derivatives used contain settlement provisions linked to both equity returns and interest rates; the remaining are interest rate contracts or equity contracts. The Company’s macro hedge derivatives are included in Other contracts in the tables above. EIA and IUL products have returns tied to the performance of equity markets. As a result of fluctuations in equity markets, the obligation incurred by the Company related to EIA and IUL products will positively or negatively impact earnings over the life of these products. The equity component of the EIA and IUL product obligations are considered embedded derivatives, which are bifurcated from their host contracts for valuation purposes and reported on the Consolidated Balance Sheets at fair value with changes in fair value reported in earnings. As a means of economically hedging its obligations under the provisions of these products, the Company enters into index options and futures contracts. Cash Flow Hedges During the nine months ended September 30, 2016 , the Company held no derivatives that were designated as cash flow hedges. At September 30, 2016 , the Company expects to reclassify $5 million of deferred loss on derivative instruments from AOCI to earnings during the next 12 months that will be recorded in net investment income. These were originally losses on derivative instruments related to interest rate swaptions. During the nine months ended September 30, 2016 and 2015 , no hedge relationships were discontinued due to forecasted transactions no longer being expected to occur according to the original hedge strategy. For the nine months ended September 30, 2016 and 2015 , amounts recognized in earnings on derivative transactions that were ineffective were not material. See Note 13 for a summary of net unrealized gains included in AOCI related to previously designated cash flow hedges. Currently , the longest period of time over which the Company is hedging exposure to the variability in future cash flows is two years and relates to interest credited on forecasted fixed premium product sales. Credit Risk Credit risk associated with the Company’s derivatives is the risk that a derivative counterparty will not perform in accordance with the terms of the applicable derivative contract. To mitigate such risk, the Company has established guidelines and oversight of credit risk through a comprehensive enterprise risk management program that includes members of senior management. Key components of this program are to require preapproval of counterparties and the use of master netting arrangements and collateral arrangements whenever practical. See Note 11 for additional information on the Company’s credit exposure related to derivative assets. Certain of the Company’s derivative contracts contain provisions that adjust the level of collateral the Company is required to post based on the Company’s financial strength rating (or based on the debt rating of the Company’s parent, Ameriprise Financial). Additionally, certain of the Company’s derivative contracts contain provisions that allow the counterparty to terminate the contract if the Company does not maintain a specific financial strength rating or Ameriprise Financial’s debt does not maintain a specific credit rating (generally an investment grade rating). If these termination provisions were to be triggered, the Company’s counterparty could require immediate settlement of any net liability position. At September 30, 2016 and December 31, 2015 , the aggregate fair value of derivative contracts in a net liability position containing such credit contingent provisions was $152 million and $243 million , respectively. The aggregate fair value of assets posted as collateral for such instruments as of September 30, 2016 and December 31, 2015 was $140 million and $243 million , respectively. If the credit contingent provisions of derivative contracts in a net liability position at September 30, 2016 and December 31, 2015 were triggered, the aggregate fair value of additional assets that would be required to be posted as collateral or needed to settle the instruments immediately would have been $12 million and nil , respectively. |
Shareholder's Equity
Shareholder's Equity | 9 Months Ended |
Sep. 30, 2016 | |
Stockholders' Equity Note [Abstract] | |
Shareholder's Equity [Text Block] | Shareholder’s Equity The following tables provide the amounts related to each component of OCI: Three Months Ended September 30, 2016 2015 Pretax Income Tax Benefit (Expense) Net of Tax Pretax Income Tax Benefit (Expense) Net of Tax (in millions) Net unrealized securities losses: Net unrealized securities gains (losses) arising during the period (1) $ 75 $ (25 ) $ 50 $ (128 ) $ 45 $ (83 ) Reclassification of net securities (gains) losses included in net income (2) (1 ) — (1 ) 10 (4 ) 6 Impact of deferred acquisition costs, deferred sales inducement costs, unearned revenue, benefit reserves and reinsurance recoverables (114 ) 39 (75 ) 78 (27 ) 51 Net unrealized securities losses (40 ) 14 (26 ) (40 ) 14 (26 ) Net unrealized derivatives gains: Reclassification of net derivative losses included in net income (3) 1 — 1 1 — 1 Net unrealized derivatives gains 1 — 1 1 — 1 Other comprehensive loss $ (39 ) $ 14 $ (25 ) $ (39 ) $ 14 $ (25 ) Nine Months Ended September 30, 2016 2015 Pretax Income Tax Benefit (Expense) Net of Tax Pretax Income Tax Benefit (Expense) Net of Tax (in millions) Net unrealized securities gains (losses): Net unrealized securities gains (losses) arising during the period (1) $ 1,067 $ (375 ) $ 692 $ (545 ) $ 191 $ (354 ) Reclassification of net securities gains included in net income (2) (7 ) 2 (5 ) (7 ) 2 (5 ) Impact of deferred acquisition costs, deferred sales inducement costs, unearned revenue, benefit reserves and reinsurance recoverables (533 ) 186 (347 ) 281 (98 ) 183 Net unrealized securities gains (losses) 527 (187 ) 340 (271 ) 95 (176 ) Net unrealized derivatives gains: Reclassification of net derivative losses included in net income (3) 4 (1 ) 3 4 (1 ) 3 Net unrealized derivatives gains 4 (1 ) 3 4 (1 ) 3 Other comprehensive income (loss) $ 531 $ (188 ) $ 343 $ (267 ) $ 94 $ (173 ) (1) Includes other-than-temporary impairment losses on Available-for-Sale securities related to factors other than credit that were recognized in other comprehensive income during the period. (2) Reclassification amounts are recorded in net realized investment gains. (3) Reclassification amounts are recorded in net investment income. Other comprehensive income (loss) related to net unrealized securities gains (losses) includes three components: (i) unrealized gains (losses) that arose from changes in the market value of securities that were held during the period; (ii) (gains) losses that were previously unrealized, but have been recognized in current period net income due to sales of Available-for-Sale securities and due to the reclassification of noncredit other-than-temporary impairment losses to credit losses; and (iii) other adjustments primarily consisting of changes in insurance and annuity asset and liability balances, such as DAC, DSIC, unearned revenue, benefit reserves and reinsurance recoverables, to reflect the expected impact on their carrying values had the unrealized gains (losses) been realized as of the respective balance sheet dates. The following tables present the changes in the balances of each component of AOCI, net of tax: Net Unrealized Securities Gains Net Unrealized Derivatives Gains Total (in millions) Balance, July 1, 2016 $ 769 $ (6 ) $ 763 OCI before reclassifications (25 ) — (25 ) Amounts reclassified from AOCI (1 ) 1 — Total OCI (26 ) 1 (25 ) Balance, September 30, 2016 $ 743 (1) $ (5 ) $ 738 Balance, January 1, 2016 $ 403 $ (8 ) $ 395 OCI before reclassifications 345 — 345 Amounts reclassified from AOCI (5 ) 3 (2 ) Total OCI 340 3 343 Balance, September 30, 2016 $ 743 (1) $ (5 ) $ 738 Net Unrealized Securities Gains Net Unrealized Derivatives Gains Total (in millions) Balance, July 1, 2015 $ 591 $ (10 ) $ 581 OCI before reclassifications (32 ) — (32 ) Amounts reclassified from AOCI 6 1 7 Total OCI (26 ) 1 (25 ) Balance, September 30, 2015 $ 565 (1) $ (9 ) $ 556 Balance, January 1, 2015 $ 741 $ (12 ) $ 729 OCI before reclassifications (171 ) — (171 ) Amounts reclassified from AOCI (5 ) 3 (2 ) Total OCI (176 ) 3 (173 ) Balance, September 30, 2015 $ 565 (1) $ (9 ) $ 556 (1) Includes $1 million and $(1) million of noncredit related impairments on securities and net unrealized securities gains (losses) on previously impaired securities at September 30, 2016 and September 30, 2015 , respectively. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company’s effective tax rate was 1,900.0% and 15.2% for the three months ended September 30, 2016 and 2015 , respectively. The Company’s effective tax rate was 5.8% and 17.2% for the nine months ended September 30, 2016 and 2015 , respectively. The effective tax rate for the three months ended September 30, 2016 is exceptionally high due to a pretax loss. The decrease in the effective tax rate for the nine months ended September 30, 2016 compared to the prior year period is primarily due to lower pretax income. The effective tax rates are lower than the statutory rate as a result of tax preferred items including the dividends received deduction and low income housing tax credits. Included in the Company’s deferred income tax assets are tax benefits related to state net operating losses of $7 million which will expire beginning December 31, 2016. The Company is required to establish a valuation allowance for any portion of the deferred tax assets that management believes will not be realized. Included in deferred tax assets is a significant deferred tax asset relating to capital losses that have been recognized for financial statement purposes but not yet for tax return purposes as well as future deductible capital losses realized for tax return purposes. Under current U.S. federal income tax law, capital losses generally must be used against capital gain income within five years of the year in which the capital losses are recognized for tax purposes. Significant judgment is required in determining if a valuation allowance should be established, and the amount of such allowance if required. Factors used in making this determination include estimates relating to the performance of the business. Consideration is given to, among other things in making this determination, (i) future taxable income exclusive of reversing temporary differences and carryforwards, (ii) future reversals of existing taxable temporary differences, (iii) taxable income in prior carryback years, and (iv) tax planning strategies. Based on analysis of the Company’s tax position, management believes it is more likely than not that the results of future operations and implementation of tax planning strategies will not allow the Company to realize certain state deferred tax assets and state net operating losses. The valuation allowance for state deferred tax assets and state net operating losses was $7 million and $8 million at September 30, 2016 and December 31, 2015 , respectively. At September 30, 2016 and December 31, 2015 , the Company had $58 million and $95 million , respectively, of gross unrecognized tax benefits. If recognized, approximately $6 million and $9 million , net of federal tax benefits, of unrecognized tax benefits at September 30, 2016 and December 31, 2015 , respectively, would affect the effective tax rate. It is reasonably possible that the total amounts of unrecognized tax benefits will change in the next 12 months. Based on the current audit position of the Company, it is estimated that the total amount of gross unrecognized tax benefits may decrease by $45 million to $55 million in the next 12 months due to resolution of IRS examinations. The Company recognizes interest and penalties related to unrecognized tax benefits as a component of the income tax provision. The Company recognized a net decrease of nil and $39 million in interest and penalties for the three months and nine months ended September 30, 2016 , respectively. The Company recognized a net increase of $1 million and $2 million in interest and penalties for the three months and nine months ended September 30, 2015 , respectively. At September 30, 2016 and December 31, 2015 , the Company had a payable of $2 million and $41 million , respectively, related to accrued interest and penalties. The Company or one or more of its subsidiaries files income tax returns as part of its inclusion in the consolidated federal income tax returns of Ameriprise Financial in the U.S. federal jurisdiction and various state jurisdictions. The IRS has completed its examinations of the 1997 through 2011 tax returns and these years are effectively settled; however, the statutes of limitation, except for 2007, remain open for certain carryover adjustments. The IRS is currently auditing the Company’s U.S. income tax returns for 2012 and 2013. The Company’s or certain of its subsidiaries’ state income tax returns are currently under examination by various jurisdictions for years ranging from 2005 through 2014. State income tax examinations prior to 2005 are effectively settled; however, the statutes of limitation are open in certain jurisdictions back to 1997 due to potential carryover adjustments related to the IRS audit. |
Guarantees and Contingencies
Guarantees and Contingencies | 9 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Guarantees and Contingencies | Guarantees and Contingencies Guarantees The Company is required by law to be a member of the guaranty fund association in every state where it is licensed to do business. In the event of insolvency of one or more unaffiliated insurance companies, the Company could be adversely affected by the requirement to pay assessments to the guaranty fund associations. The Company projects its cost of future guaranty fund assessments based on estimates of insurance company insolvencies provided by the National Organization of Life and Health Insurance Guaranty Associations (“NOLHGA”) and the amount of its premiums written relative to the industry-wide premium in each state. The Company accrues the estimated cost of future guaranty fund assessments when it is considered probable that an assessment will be imposed, the event obligating the Company to pay the assessment has occurred and the amount of the assessment can be reasonably estimated. The Company has a liability for estimated guaranty fund assessments and a related premium tax asset. At both September 30, 2016 and December 31, 2015 , the estimated liability was $13 million and the related premium tax asset was $12 million . The expected period over which guaranty fund assessments will be made and the related tax credits recovered is not known. Contingencies Insurance companies have been the subject of increasing regulatory, legislative and judicial scrutiny. Numerous state and federal regulatory agencies have commenced examinations and other inquiries of insurance companies regarding sales and marketing practices (including sales to older consumers and disclosure practices), claims handling, and unclaimed property and escheatment practices and procedures. With regard to an industry-wide investigation of unclaimed property and escheatment practices and procedures, the Company is responding to regulatory audits, market conduct examinations and other inquiries (including a multistate insurance department examination and a market conduct examination by the State of Minnesota). The Company has cooperated and will continue to cooperate with the applicable regulators. The Company is involved in the normal course of business in a number of other legal and arbitration proceedings concerning matters arising in connection with the conduct of its business activities. The Company believes that it is not a party to, nor are any of its properties the subject of, any pending legal, arbitration or regulatory investigation, examination or proceeding that is likely to have a material adverse effect on its consolidated financial condition, results of operations or liquidity. Notwithstanding the foregoing, it is possible that the outcome of any current or future legal, arbitration or regulatory proceeding could have a material impact on results of operations in any particular reporting period as the proceedings are resolved. Uncertain economic conditions, heightened and sustained volatility in the financial markets and significant financial reform legislation may increase the likelihood that clients and other persons or regulators may present or threaten legal claims or that regulators increase the scope or frequency of examinations of the Company or the insurance industry generally. |
Variable Interest Entities Vari
Variable Interest Entities Variable Interest Entities | 9 Months Ended |
Sep. 30, 2016 | |
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets and Liabilities, Net [Abstract] | |
Variable Interest Entity Disclosure [Text Block] | Variable Interest Entities The Company has variable interests in affordable housing partnerships for which it is not the primary beneficiary and therefore does not consolidate. The Company’s maximum exposure to loss as a result of its investments in affordable housing partnerships is limited to the carrying value of these investments. The carrying value is reflected in other investments and was $544 million and $517 million as of September 30, 2016 and December 31, 2015 , respectively. The Company has no obligation to provide financial or other support to the affordable housing partnerships in addition to liabilities already recorded for future funding commitments nor has it provided any additional support to the affordable housing partnerships. The Company has variable interests in a partnership that invests in properties that may requalify for low income tax credits. The Company is not the primary beneficiary and therefore does not consolidate partnership. The Company’s maximum exposure to loss as a result of its investment in the partnership is limited to the carrying value, which is reflected in other investments and was $10 million at September 30, 2016 . The Company has no obligation to provide financial or other support to the partnership in addition to liabilities already recorded for future funding commitments nor has it provided any additional support to the partnership. The Company invests in structured investments which are considered VIEs for which it is not the sponsor. These structured investments typically invest in fixed income instruments and are managed by third parties and include asset backed securities, commercial mortgage backed securities and residential mortgage backed securities. The Company classifies these investments as Available-for-Sale securities. The Company has determined that it is not the primary beneficiary of these structures due to the size of the Company’s investment in the entities and position in the capital structure of these entities. The Company’s maximum exposure to loss as a result of its investment in these structured investments is limited to its carrying value. The carrying value is included in Available-for-Sale fixed maturities on the Consolidated Balance Sheets. The Company has no obligation to provide financial or other support to the structured investments beyond its investment nor has the Company provided any support to the structured investments. See Note 4 for additional information about these structured investments. |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Available-for-Sale Securities Disclosure [Table Text Block] | Available-for-Sale securities distributed by type were as follows: September 30, 2016 Description of Securities Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Noncredit OTTI (1) (in millions) Fixed maturities: Corporate debt securities $ 13,134 $ 1,477 $ (38 ) $ 14,573 $ 3 Residential mortgage backed securities 3,401 127 (18 ) 3,510 (5 ) Commercial mortgage backed securities 2,524 127 (1 ) 2,650 — State and municipal obligations 1,072 231 (13 ) 1,290 — Asset backed securities 805 34 (5 ) 834 — Foreign government bonds and obligations 251 28 (4 ) 275 — U.S. government and agencies obligations 4 1 — 5 — Total fixed maturities 21,191 2,025 (79 ) 23,137 (2 ) Common stocks 3 5 — 8 3 Total $ 21,194 $ 2,030 $ (79 ) $ 23,145 $ 1 December 31, 2015 Description of Securities Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Noncredit OTTI (1) (in millions) Fixed maturities: Corporate debt securities $ 13,764 $ 891 $ (281 ) $ 14,374 $ 2 Residential mortgage backed securities 3,015 96 (36 ) 3,075 (8 ) Commercial mortgage backed securities 2,081 68 (13 ) 2,136 — State and municipal obligations 1,023 153 (27 ) 1,149 — Asset backed securities 748 33 (5 ) 776 — Foreign government bonds and obligations 217 17 (11 ) 223 — U.S. government and agencies obligations 38 1 — 39 — Total fixed maturities 20,886 1,259 (373 ) 21,772 (6 ) Common stocks 2 5 — 7 3 Total $ 20,888 $ 1,264 $ (373 ) $ 21,779 $ (3 ) (1) Represents the amount of other-than-temporary impairment (“OTTI”) losses in accumulated other comprehensive income (“AOCI”). Amount includes unrealized gains and losses on impaired securities subsequent to the initial impairment measurement date. These amounts are included in gross unrealized gains and losses as of the end of the period. |
Fixed Maturity Securities by Rating Disclosure [Table Text Block] | A summary of fixed maturity securities by rating was as follows: September 30, 2016 December 31, 2015 Ratings Amortized Cost Fair Value Percent of Total Fair Value Amortized Cost Fair Value Percent of Total Fair Value (in millions, except percentages) AAA $ 5,376 $ 5,625 24 % $ 4,661 $ 4,806 22 % AA 1,010 1,248 6 1,010 1,185 5 A 3,777 4,333 19 3,749 4,101 19 BBB 9,559 10,461 45 9,964 10,278 47 Below investment grade 1,469 1,470 6 1,502 1,402 7 Total fixed maturities $ 21,191 $ 23,137 100 % $ 20,886 $ 21,772 100 % |
Available-for-Sale Securities Continuous Unrealized Loss Disclosure [Table Text Block] | The following tables provide information about Available-for-Sale securities with gross unrealized losses and the length of time that individual securities have been in a continuous unrealized loss position: September 30, 2016 Less than 12 months 12 months or more Total Description of Securities Number Fair Value Unrealized Losses Number Fair Value Unrealized Losses Number Fair Value Unrealized Losses (in millions, except number of securities) Corporate debt securities 20 $ 146 $ (2 ) 37 $ 361 $ (36 ) 57 $ 507 $ (38 ) Residential mortgage backed securities 28 434 (3 ) 56 370 (15 ) 84 804 (18 ) Commercial mortgage backed securities 13 190 (1 ) 1 11 — 14 201 (1 ) State and municipal obligations 3 7 — 2 113 (13 ) 5 120 (13 ) Asset backed securities 22 215 (3 ) 6 50 (2 ) 28 265 (5 ) Foreign government bonds and obligations 1 1 — 14 24 (4 ) 15 25 (4 ) Total 87 $ 993 $ (9 ) 116 $ 929 $ (70 ) 203 $ 1,922 $ (79 ) December 31, 2015 Less than 12 months 12 months or more Total Description of Securities Number Fair Value Unrealized Losses Number Fair Value Unrealized Losses Number Fair Value Unrealized Losses (in millions, except number of securities) Corporate debt securities 253 $ 3,703 $ (208 ) 35 $ 300 $ (73 ) 288 $ 4,003 $ (281 ) Residential mortgage backed securities 36 535 (7 ) 59 526 (29 ) 95 1,061 (36 ) Commercial mortgage backed securities 45 568 (12 ) 3 33 (1 ) 48 601 (13 ) State and municipal obligations 9 40 (1 ) 2 101 (26 ) 11 141 (27 ) Asset backed securities 21 241 (5 ) — — — 21 241 (5 ) Foreign government bonds and obligations 9 39 (2 ) 15 27 (9 ) 24 66 (11 ) Total 373 $ 5,126 $ (235 ) 114 $ 987 $ (138 ) 487 $ 6,113 $ (373 ) |
Credit Losses on Available-for-Sale Securities Disclosure [Table Text Block] | The following table presents a rollforward of the cumulative amounts recognized in the Consolidated Statements of Income for other-than-temporary impairments related to credit losses on Available-for-Sale securities for which a portion of the securities’ total other-than-temporary impairments was recognized in other comprehensive income (loss) (“OCI”): Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 (in millions) Beginning balance $ 33 $ 33 $ 33 $ 33 Credit losses for which an other-than-temporary impairment was previously recognized — — — — Ending balance $ 33 $ 33 $ 33 $ 33 |
Net Realized Gains and Losses on Available-for-Sale Securities Disclosure [Table Text Block] | Net realized gains and losses on Available-for-Sale securities, determined using the specific identification method, recognized in net realized investment gains (losses) were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 (in millions) Gross realized investment gains $ 5 $ 1 $ 18 $ 23 Gross realized investment losses (3 ) (4 ) (11 ) (9 ) Other-than-temporary impairments — (7 ) — (7 ) Total $ 2 $ (10 ) $ 7 $ 7 |
Available-for-Sale Securities Contractual Maturity Disclosure [Table Text Block] | Available-for-Sale securities by contractual maturity at September 30, 2016 were as follows: Amortized Cost Fair Value (in millions) Due within one year $ 503 $ 516 Due after one year through five years 5,964 6,414 Due after five years through 10 years 4,270 4,538 Due after 10 years 3,724 4,675 14,461 16,143 Residential mortgage backed securities 3,401 3,510 Commercial mortgage backed securities 2,524 2,650 Asset backed securities 805 834 Common stocks 3 8 Total $ 21,194 $ 23,145 |
Schedule of Net Investment Income [Table Text Block] | The following is a summary of net investment income: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 (in millions) Fixed maturities $ 249 $ 257 $ 751 $ 783 Mortgage loans 38 43 115 134 Other investments (4 ) 6 4 14 283 306 870 931 Less: investment expenses 7 10 20 27 Total $ 276 $ 296 $ 850 $ 904 |
Financing Receivables (Tables)
Financing Receivables (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Receivables [Abstract] | |
Rollforward of the Allowance for Loan Losses [Table Text Block] | The following table presents a rollforward of the allowance for loan losses for the nine months ended and the ending balance of the allowance for loan losses by impairment method: September 30, 2016 2015 (in millions) Beginning balance $ 25 $ 28 Charge-offs (1 ) (3 ) Provisions 1 1 Ending balance $ 25 $ 26 Individually evaluated for impairment $ 2 $ 5 Collectively evaluated for impairment 23 21 |
Schedule of Recorded Investment in Financing Receivables by Impairment Method [Table Text Block] | The recorded investment in financing receivables by impairment method was as follows: September 30, December 31, 2015 (in millions) Individually evaluated for impairment $ 14 $ 25 Collectively evaluated for impairment 3,284 3,657 Total $ 3,298 $ 3,682 |
Schedule of Commercial Mortgage Loans by Geographic Region [Table Text Block] | Concentrations of credit risk of commercial mortgage loans by U.S. region were as follows: Loans Percentage September 30, 2016 December 31, 2015 September 30, 2016 December 31, 2015 (in millions) South Atlantic $ 740 $ 746 29 % 28 % Pacific 702 709 27 27 Mountain 254 242 10 9 West North Central 216 217 8 8 Middle Atlantic 190 203 7 8 East North Central 199 208 8 8 West South Central 119 128 5 5 New England 92 115 3 4 East South Central 70 68 3 3 2,582 2,636 100 % 100 % Less: allowance for loan losses 19 19 Total $ 2,563 $ 2,617 |
Schedule of Commercial Mortgage Loans by Property Type [Table Text Block] | Concentrations of credit risk of commercial mortgage loans by property type were as follows: Loans Percentage September 30, 2016 December 31, 2015 September 30, 2016 December 31, 2015 (in millions) Retail $ 927 $ 947 36 % 36 % Office 480 522 19 20 Apartments 475 473 18 18 Industrial 430 444 17 17 Mixed use 37 35 1 1 Hotel 42 34 2 1 Other 191 181 7 7 2,582 2,636 100 % 100 % Less: allowance for loan losses 19 19 Total $ 2,563 $ 2,617 |
Deferred Acquisition Costs an25
Deferred Acquisition Costs and Deferred Sales Inducement Costs (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Deferred Acquisition Costs and Deferred Sales Inducement Costs | |
Schedule of balances of and changes in DAC | The balances of and changes in DAC were as follows: 2016 2015 (in millions) Balance at January 1 $ 2,688 $ 2,576 Capitalization of acquisition costs 212 (1) 201 Amortization, excluding the impact of valuation assumptions review (218 ) (235 ) Amortization, impact of valuation assumptions review (81 ) (6 ) Impact of change in net unrealized securities (gains) losses (105 ) 64 Balance at September 30 $ 2,496 $ 2,600 (1) Includes a $27 million benefit related to the write-off of the deferred reinsurance liability in connection with the loss recognition on LTC business. |
Schedule of balances of and changes in DSIC | The balances of and changes in DSIC, which is included in other assets, were as follows: 2016 2015 (in millions) Balance at January 1 $ 334 $ 361 Capitalization of sales inducement costs 4 3 Amortization, excluding the impact of valuation assumptions review (32 ) (43 ) Amortization, impact of valuation assumptions review 4 1 Impact of change in net unrealized securities (gains) losses (14 ) 10 Balance at September 30 $ 296 $ 332 |
Policyholder Account Balances26
Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Policyholder Account Balances, Future Policy Benefits and Claims & Separate Account Liabilities | |
Policyholder Account Balances, Future Policy Benefits and Claims Disclosure | Policyholder account balances, future policy benefits and claims consisted of the following: September 30, December 31, 2015 (in millions) Policyholder account balances Fixed annuities $ 10,729 $ 11,239 Variable annuity fixed sub-accounts 5,152 4,912 Variable universal life (“VUL”)/universal life (“UL”) insurance 2,978 2,897 Indexed universal life (“IUL”) insurance 975 808 Other life insurance 766 794 Total policyholder account balances 20,600 20,650 Future policy benefits Variable annuity guaranteed minimum withdrawal benefits (“GMWB”) 2,113 1,057 Variable annuity guaranteed minimum accumulation benefits (“GMAB”) 8 — Other annuity liabilities 143 31 Fixed annuities life contingent liabilities 1,496 1,501 Equity indexed annuities (“EIA”) 26 27 Life, disability income and long term care insurance 5,561 5,112 VUL/UL and other life insurance additional liabilities 598 452 Total future policy benefits 9,945 8,180 Policy claims and other policyholders’ funds 210 199 Total policyholder account balances, future policy benefits and claims $ 30,755 $ 29,029 |
Schedule of Separate Account Liabilities by Policy Type | Separate account liabilities consisted of the following: September 30, December 31, 2015 (in millions) Variable annuity $ 70,715 $ 69,333 VUL insurance 6,710 6,637 Other insurance 33 34 Total $ 77,458 $ 76,004 |
Variable Annuity and Insuranc27
Variable Annuity and Insurance Guarantees (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Insurance [Abstract] | |
Schedule of Variable Annuity Guarantees [Table Text Block] | The following table provides information related to variable annuity guarantees for which the Company has established additional liabilities: Variable Annuity Guarantees by Benefit Type (1) September 30, 2016 December 31, 2015 Total Contract Value Contract Value in Separate Accounts Net Amount at Risk Weighted Average Attained Age Total Contract Value Contract Value in Separate Accounts Net Amount at Risk Weighted Average Attained Age (in millions, except age) GMDB: Return of premium $ 56,748 $ 54,787 $ 144 65 $ 54,716 $ 52,871 $ 297 65 Five/six-year reset 9,052 6,371 23 66 9,307 6,731 78 65 One-year ratchet 6,614 6,237 80 67 6,747 6,379 266 67 Five-year ratchet 1,587 1,527 5 64 1,613 1,556 20 63 Other 954 932 73 71 887 869 82 71 Total — GMDB $ 74,955 $ 69,854 $ 325 65 $ 73,270 $ 68,406 $ 743 65 GGU death benefit $ 1,063 $ 1,011 $ 111 68 $ 1,056 $ 1,004 $ 113 67 GMIB $ 251 $ 233 $ 12 68 $ 270 $ 251 $ 17 68 GMWB: GMWB $ 2,805 $ 2,796 $ 2 70 $ 3,118 $ 3,109 $ 2 69 GMWB for life 39,652 39,508 356 66 37,301 37,179 330 66 Total — GMWB $ 42,457 $ 42,304 $ 358 66 $ 40,419 $ 40,288 $ 332 66 GMAB $ 3,689 $ 3,681 $ 14 59 $ 4,018 $ 4,006 $ 31 58 (1) Individual variable annuity contracts may have more than one guarantee and therefore may be included in more than one benefit type. Variable annuity contracts for which the death benefit equals the account value are not shown in this table. |
Schedule of UL Secondary Guarantees [Table Text Block] | The following table provides information related to insurance guarantees for which the Company has established additional liabilities: September 30, 2016 December 31, 2015 Net Amount at Risk Weighted Average Attained Age Net Amount at Risk Weighted Average Attained Age (in millions, except age) UL secondary guarantees $ 6,339 64 $ 6,601 63 |
Schedule of Changes in Additional Liabilities for Variable Annuity and Insurance Guarantees [Table Text Block] | Changes in additional liabilities (contra liabilities) for variable annuity and insurance guarantees were as follows: GMDB & GGU GMIB GMWB (1) GMAB (1) UL (in millions) Balance at January 1, 2015 $ 9 $ 7 $ 693 $ (41 ) $ 263 Incurred claims 9 — 580 72 70 Paid claims (3 ) — — — (19 ) Balance at September 30, 2015 $ 15 $ 7 $ 1,273 $ 31 $ 314 Balance at January 1, 2016 $ 14 $ 8 $ 1,057 $ — $ 332 Incurred claims 10 — 1,056 9 99 Paid claims (7 ) — — (1 ) (18 ) Balance at September 30, 2016 $ 17 $ 8 $ 2,113 $ 8 $ 413 (1) The incurred claims for GMWB and GMAB represent the total change in the liabilities (contra liabilities). |
Schedule of Separate Account Balances By Asset Type [Table Text Block] | The following table summarizes the distribution of separate account balances by asset type for variable annuity contracts providing guaranteed benefits: September 30, December 31, 2015 (in millions) Mutual funds: Equity $ 40,872 $ 39,806 Bond 23,875 23,700 Other 5,426 5,241 Total mutual funds $ 70,173 $ 68,747 |
Fair Values of Assets and Lia28
Fair Values of Assets and Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of Balances of Assets and Liabilities Measured at Fair Value on a Recurring Basis [Table Text Block] | The following tables present the balances of assets and liabilities measured at fair value on a recurring basis: September 30, 2016 Level 1 Level 2 Level 3 Total (in millions) Assets Available-for-Sale securities: Fixed maturities: Corporate debt securities $ — $ 13,380 $ 1,193 $ 14,573 Residential mortgage backed securities — 3,390 120 3,510 Commercial mortgage backed securities — 2,617 33 2,650 State and municipal obligations — 1,290 — 1,290 Asset backed securities — 716 118 834 Foreign government bonds and obligations — 275 — 275 U.S. government and agencies obligations 3 2 — 5 Total Available-for-Sale securities: Fixed maturities 3 21,670 1,464 23,137 Common stocks 3 5 — 8 Cash equivalents — 928 — 928 Other assets: Interest rate derivative contracts 2 3,591 — 3,593 Equity derivative contracts 56 1,357 — 1,413 Credit derivative contracts — 1 — 1 Foreign exchange derivative contracts 1 70 — 71 Total other assets 59 5,019 — 5,078 Separate account assets measured at NAV 77,458 (1) Total assets at fair value $ 65 $ 27,622 $ 1,464 $ 106,609 Liabilities Policyholder account balances, future policy benefits and claims: EIA embedded derivatives $ — $ 5 $ — $ 5 IUL embedded derivatives — — 438 438 GMWB and GMAB embedded derivatives — — 1,756 1,756 (2) Total policyholder account balances, future policy benefits and claims — 5 2,194 2,199 (3) Other liabilities: Interest rate derivative contracts — 1,603 — 1,603 Equity derivative contracts 3 1,843 — 1,846 Foreign exchange derivative contracts — 35 — 35 Other derivative contracts 1 — — 1 Total other liabilities 4 3,481 — 3,485 Total liabilities at fair value $ 4 $ 3,486 $ 2,194 $ 5,684 (1) Amounts are comprised of certain investments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient and have not been classified in the fair value hierarchy. See Note 2 for further information. (2) The fair value of the GMWB and GMAB embedded derivatives included $1.8 billion of individual contracts in a liability position and $73 million of individual contracts in an asset position. (3) The Company’s adjustment for nonperformance risk resulted in a $764 million cumulative decrease to the embedded derivatives. December 31, 2015 Level 1 Level 2 Level 3 Total (in millions) Assets Available-for-Sale securities: Fixed maturities: Corporate debt securities $ — $ 13,139 $ 1,235 $ 14,374 Residential mortgage backed securities — 3,054 21 3,075 Commercial mortgage backed securities — 2,133 3 2,136 State and municipal obligations — 1,149 — 1,149 Asset backed securities — 643 133 776 Foreign government bonds and obligations — 223 — 223 U.S. government and agencies obligations 4 35 — 39 Total Available-for-Sale securities: Fixed maturities 4 20,376 1,392 21,772 Common stocks 3 4 — 7 Cash equivalents 48 285 — 333 Other assets: Interest rate derivative contracts — 1,882 — 1,882 Equity derivative contracts 92 1,477 — 1,569 Credit derivative contracts — 2 — 2 Foreign exchange derivative contracts 1 54 — 55 Total other assets 93 3,415 — 3,508 Separate account assets measured at NAV 76,004 (1) Total assets at fair value $ 148 $ 24,080 $ 1,392 $ 101,624 Liabilities Policyholder account balances, future policy benefits and claims: EIA embedded derivatives $ — $ 5 $ — $ 5 IUL embedded derivatives — — 364 364 GMWB and GMAB embedded derivatives — — 851 851 (2) Total policyholder account balances, future policy benefits and claims — 5 1,215 1,220 (3) Other liabilities: Interest rate derivative contracts — 948 — 948 Equity derivative contracts 45 1,930 — 1,975 Foreign exchange derivative contracts 1 16 — 17 Total other liabilities 46 2,894 — 2,940 Total liabilities at fair value $ 46 $ 2,899 $ 1,215 $ 4,160 (1) Amounts are comprised of certain investments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient and have not been classified in the fair value hierarchy. See Note 2 for further information. (2) The fair value of the GMWB and GMAB embedded derivatives included $994 million of individual contracts in a liability position and $143 million of individual contracts in an asset position. (3) The Company’s adjustment for nonperformance risk resulted in a $398 million cumulative decrease to the embedded derivatives. |
Summary of Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis [Table Text Block] | The following tables provide a summary of changes in Level 3 assets and liabilities measured at fair value on a recurring basis: Available-for-Sale Securities: Fixed Maturities Other Derivative Contracts Corporate Debt Securities Residential Mortgage Backed Securities Commercial Mortgage Backed Securities Asset Backed Securities Total (in millions) Balance, July 1, 2016 $ 1,197 $ 15 $ — $ 130 $ 1,342 $ 2 Total gains (losses) included in: Net income (1 ) — — 1 — (1) (2 ) (2) Other comprehensive income (2 ) — — — (2 ) — Purchases 20 106 33 — 159 — Settlements (21 ) (1 ) — (1 ) (23 ) — Transfers out of Level 3 — — — (12 ) (12 ) — Balance, September 30, 2016 $ 1,193 $ 120 $ 33 $ 118 $ 1,464 $ — Changes in unrealized gains (losses) relating to assets held at September 30, 2016 included in: Net investment income $ (1 ) $ — $ — $ 1 $ — $ — Benefits, claims, losses and settlement expenses — — — — — (2 ) (1) Included in net investment income in the Consolidated Statements of Income. (2) Included in benefits, claims, losses and settlement expenses in the Consolidated Statements of Income. Policyholder Account Balances, Future Policy Benefits and Claims IUL Embedded Derivatives GMWB and GMAB Embedded Derivatives Total (in millions) Balance, July 1, 2016 $ 408 $ 1,965 $ 2,373 Total (gains) losses included in: Net income 12 (1) (280 ) (2) (268 ) Issues 25 77 102 Settlements (7 ) (6 ) (13 ) Balance, September 30, 2016 $ 438 $ 1,756 $ 2,194 Changes in unrealized (gains) losses relating to liabilities held at September 30, 2016 included in: Benefits, claims, losses and settlement expenses $ — $ (267 ) $ (267 ) Interest credited to fixed accounts 12 — 12 (1) Included in interest credited to fixed accounts in the Consolidated Statements of Income. (2) Included in benefits, claims, losses and settlement expenses in the Consolidated Statements of Income. Available-for-Sale Securities: Fixed Maturities Corporate Debt Securities Residential Mortgage Backed Securities Commercial Mortgage Backed Securities Asset Backed Securities Total (in millions) Balance, July 1, 2015 $ 1,339 $ 8 $ 34 $ 118 $ 1,499 Total gains (losses) included in: Net income (1 ) — — 1 — (1) Other comprehensive income (3 ) — — 2 (1 ) Purchases 91 37 — — 128 Settlements (89 ) (1 ) (2 ) — (92 ) Transfers out of Level 3 — — (27 ) (13 ) (40 ) Balance, September 30, 2015 $ 1,337 $ 44 $ 5 $ 108 $ 1,494 Changes in unrealized gains (losses) relating to assets held at September 30, 2015 included in: Net investment income $ (1 ) $ — $ — $ 1 $ — (1) Included in net investment income in the Consolidated Statements of Income. Policyholder Account Balances, Future Policy Benefits and Claims IUL Embedded Derivatives GMWB and GMAB Embedded Derivatives Total (in millions) Balance, July 1, 2015 $ 292 $ 235 $ 527 Total (gains) losses included in: Net income (1 ) (1) 805 (2) 804 Issues 31 69 100 Settlements (5 ) (2 ) (7 ) Balance, September 30, 2015 $ 317 $ 1,107 $ 1,424 Changes in unrealized (gains) losses relating to liabilities held at September 30, 2015 included in: Benefits, claims, losses and settlement expenses $ — $ 811 $ 811 Interest credited to fixed accounts (1 ) — (1 ) (1) Included in interest credited to fixed accounts in the Consolidated Statements of Income. (2) Included in benefits, claims, losses and settlement expenses in the Consolidated Statements of Income. Available-for-Sale Securities: Fixed Maturities Other Derivative Contracts Corporate Debt Securities Residential Mortgage Backed Securities Commercial Mortgage Backed Securities Asset Backed Securities Total (in millions) Balance, January 1, 2016 $ 1,235 $ 21 $ 3 $ 133 $ 1,392 $ — Total gains (losses) included in: Net income (1 ) — — 1 — (1) (2 ) (2) Other comprehensive income 26 — — — 26 — Purchases 34 106 42 — 182 2 Settlements (101 ) (7 ) (3 ) (1 ) (112 ) — Transfers into Level 3 — — — 12 12 — Transfers out of Level 3 — — (9 ) (27 ) (36 ) — Balance, September 30, 2016 $ 1,193 $ 120 $ 33 $ 118 $ 1,464 $ — Changes in unrealized gains (losses) relating to assets held at September 30, 2016 included in: Net investment income $ (1 ) $ — $ — $ 1 $ — $ — Benefits, claims, losses and settlement expenses — — — — — (2 ) (1) Included in net investment income in the Consolidated Statements of Income. (2) Included in benefits, claims, losses and settlement expenses in the Consolidated Statements of Income. Policyholder Account Balances, Future Policy Benefits and Claims IUL Embedded Derivatives GMWB and GMAB Embedded Derivatives Total (in millions) Balance, January 1, 2016 $ 364 $ 851 $ 1,215 Total losses included in: Net income 8 (1) 708 (2) 716 Issues 86 215 301 Settlements (20 ) (18 ) (38 ) Balance, September 30, 2016 $ 438 $ 1,756 $ 2,194 Changes in unrealized losses relating to liabilities held at September 30, 2016 included in: Benefits, claims, losses and settlement expenses $ — $ 830 $ 830 Interest credited to fixed accounts 8 — 8 (1) Included in interest credited to fixed accounts in the Consolidated Statements of Income. (2) Included in benefits, claims, losses and settlement expenses in the Consolidated Statements of Income. Available-for-Sale Securities: Fixed Maturities Common Stocks Corporate Debt Securities Residential Mortgage Backed Securities Commercial Mortgage Backed Securities Asset Backed Securities Total (in millions) Balance, January 1, 2015 $ 1,353 $ 9 $ 90 $ 151 $ 1,603 $ 1 Total gains (losses) included in: Net income (1 ) — — 1 — (1) — Other comprehensive income (10 ) — — 2 (8 ) (1 ) Purchases 142 68 31 1 242 — Settlements (147 ) (2 ) (4 ) (2 ) (155 ) — Transfers into Level 3 — — 6 — 6 — Transfers out of Level 3 — (31 ) (118 ) (45 ) (194 ) — Balance, September 30, 2015 $ 1,337 $ 44 $ 5 $ 108 $ 1,494 $ — Changes in unrealized gains (losses) relating to assets held at September 30, 2015 included in: Net investment income $ (1 ) $ — $ — $ 1 $ — $ — (1) Included in net investment income in the Consolidated Statements of Income. Policyholder Account Balances, Future Policy Benefits and Claims IUL Embedded Derivatives GMWB and GMAB Embedded Derivatives Total (in millions) Balance, January 1, 2015 $ 242 $ 479 $ 721 Total losses included in: Net income 13 (1) 426 (2) 439 Issues 76 197 273 Settlements (14 ) 5 (9 ) Balance, September 30, 2015 $ 317 $ 1,107 $ 1,424 Changes in unrealized losses relating to liabilities held at September 30, 2015 included in: Benefits, claims, losses and settlement expenses $ — $ 438 $ 438 Interest credited to fixed accounts 13 — 13 (1) Included in interest credited to fixed accounts in the Consolidated Statements of Income. (2) Included in benefits, claims, losses and settlement expenses in the Consolidated Statements of Income. |
Significant Unobservable Inputs Used in the Fair Value Measurements [Table Text Block] | The following tables provide a summary of the significant unobservable inputs used in the fair value measurements developed by the Company or reasonably available to the Company of Level 3 assets and liabilities: September 30, 2016 Fair Value Valuation Technique Unobservable Input Range Weighted Average (in millions) Corporate debt securities (private placements) $ 1,190 Discounted cash flow Yield/spread to U.S. Treasuries 1.0 % - 3.0% 1.4 % IUL embedded derivatives $ 438 Discounted cash flow Nonperformance risk (1) 89 bps GMWB and GMAB embedded derivatives $ 1,756 Discounted cash flow Utilization of guaranteed withdrawals (2) 0.0 % - 75.6% Surrender rate 0.1 % - 66.4% Market volatility (3) 5.4 % - 21.6% Nonperformance risk (1) 89 bps December 31, 2015 Fair Value Valuation Technique Unobservable Input Range Weighted Average (in millions) Corporate debt securities (private placements) $ 1,221 Discounted cash flow Yield/spread to U.S. Treasuries 1.1 % - 3.8% 1.6 % IUL embedded derivatives $ 364 Discounted cash flow Nonperformance risk (1) 68 bps GMWB and GMAB embedded derivatives $ 851 Discounted cash flow Utilization of guaranteed withdrawals (2) 0.0 % - 75.6% Surrender rate 0.0 % - 59.1% Market volatility (3) 5.4 % - 21.5% Nonperformance risk (1) 68 bps (1) The nonperformance risk is the spread added to the observable interest rates used in the valuation of the embedded derivatives. (2) The utilization of guaranteed withdrawals represents the percentage of contractholders that will begin withdrawing in any given year. (3) Market volatility is implied volatility of fund of funds and managed volatility funds. |
Schedule of Carrying Value and the Estimated Fair Value of Financial Instruments That are Not Reported at Fair Value [Table Text Block] | The following tables provide the carrying value and the estimated fair value of financial instruments that are not reported at fair value: September 30, 2016 Carrying Value Fair Value Level 1 Level 2 Level 3 Total (in millions) Financial Assets Mortgage loans, net $ 2,870 $ — $ — $ 2,991 $ 2,991 Policy loans 835 — — 810 810 Other investments 419 — 383 37 420 Financial Liabilities Policyholder account balances, future policy benefits and claims $ 11,071 $ — $ — $ 12,083 $ 12,083 Short-term borrowings 200 — 200 — 200 Other liabilities 160 — — 156 156 Separate account liabilities measured at NAV 344 344 (1) December 31, 2015 Carrying Value Fair Value Level 1 Level 2 Level 3 Total (in millions) Financial Assets Mortgage loans, net $ 3,211 $ — $ — $ 3,254 $ 3,254 Policy loans 823 — — 803 803 Other investments 463 — 416 33 449 Financial Liabilities Policyholder account balances, future policy benefits and claims $ 11,523 $ — $ — $ 12,424 $ 12,424 Short-term borrowings 200 — 200 — 200 Other liabilities 117 — — 113 113 Separate account liabilities measured at NAV 360 360 (1) (1) Amounts are comprised of certain investments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient and have not been classified in the fair value hierarchy. See Note 2 for further information. |
Offsetting Assets and Liabili29
Offsetting Assets and Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Offsetting [Abstract] | |
Schedule of Gross and Net Information About the Company's Assets Subject to Master Netting Arrangements [Table Text Block] | The following tables present the gross and net information about the Company’s assets subject to master netting arrangements: September 30, 2016 Gross Amounts of Recognized Assets Gross Amounts Offset in the Consolidated Balance Sheets Amounts of Assets Presented in the Consolidated Balance Sheets Gross Amounts Not Offset Net Amount Financial Instruments (1) Cash Collateral Securities Collateral (in millions) Derivatives: OTC $ 3,957 $ — $ 3,957 $ (2,442 ) $ (659 ) $ (856 ) $ — OTC cleared 1,098 — 1,098 (874 ) (223 ) — 1 Exchange-traded 23 — 23 (2 ) — — 21 Total derivatives $ 5,078 $ — $ 5,078 $ (3,318 ) $ (882 ) $ (856 ) $ 22 December 31, 2015 Gross Amounts of Recognized Assets Gross Amounts Offset in the Consolidated Balance Sheets Amounts of Assets Presented in the Consolidated Balance Sheets Gross Amounts Not Offset Net Amount Financial Instruments (1) Cash Collateral Securities Collateral (in millions) Derivatives: OTC $ 3,051 $ — $ 3,051 $ (2,293 ) $ (354 ) $ (320 ) $ 84 OTC cleared 417 — 417 (313 ) (102 ) — 2 Exchange-traded 40 — 40 (3 ) — — 37 Total derivatives $ 3,508 $ — $ 3,508 $ (2,609 ) $ (456 ) $ (320 ) $ 123 (1) Represents the amount of assets that could be offset by liabilities with the same counterparty under master netting or similar arrangements that management elects not to offset on the Consolidated Balance Sheets. |
Schedule of Gross and Net Information About the Company's Liabilities Subject to Master Netting Arrangements [Table Text Block] | The following tables present the gross and net information about the Company’s liabilities subject to master netting arrangements: September 30, 2016 Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Consolidated Balance Sheets Amounts of Liabilities Presented in the Consolidated Balance Sheets Gross Amounts Not Offset Net Amount Financial Instruments (1) Cash Collateral Securities Collateral (in millions) Derivatives: OTC $ 2,609 $ — $ 2,609 $ (2,442 ) $ — $ (153 ) $ 14 OTC cleared 874 — 874 (874 ) — — — Exchange-traded 2 — 2 (2 ) — — — Total derivatives 3,485 — 3,485 (3,318 ) — (153 ) 14 Repurchase agreements 50 — 50 — — (50 ) — Total $ 3,535 $ — $ 3,535 $ (3,318 ) $ — $ (203 ) $ 14 December 31, 2015 Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Consolidated Balance Sheets Amounts of Liabilities Presented in the Consolidated Balance Sheets Gross Amounts Not Offset Net Amount Financial Instruments (1) Cash Collateral Securities Collateral (in millions) Derivatives: OTC $ 2,624 $ — $ 2,624 $ (2,293 ) $ — $ (331 ) $ — OTC cleared 313 — 313 (313 ) — — — Exchange-traded 3 — 3 (3 ) — — — Total derivatives 2,940 — 2,940 (2,609 ) — (331 ) — Repurchase agreements 50 — 50 — — (50 ) — Total $ 2,990 $ — $ 2,990 $ (2,609 ) $ — $ (381 ) $ — (1) Represents the amount of liabilities that could be offset by assets with the same counterparty under master netting or similar arrangements that management elects not to offset on the Consolidated Balance Sheets. |
Derivatives and Hedging Activ30
Derivatives and Hedging Activities (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Gross Fair Value of Derivative Instruments, Including Embedded Derivatives [Table Text Block] | The following table presents the notional value and gross fair value of derivative instruments, including embedded derivatives: September 30, 2016 December 31, 2015 Notional Gross Fair Value Notional Gross Fair Value Assets (1) Liabilities (2) Assets (1) Liabilities (2) (in millions) Derivatives not designated as hedging instruments Interest rate contracts $ 73,844 $ 3,593 $ 1,603 $ 62,591 $ 1,882 $ 948 Equity contracts 59,441 1,413 1,846 69,009 1,569 1,975 Credit contracts 1,073 1 — 600 2 — Foreign exchange contracts 4,659 71 35 4,155 55 17 Other contracts 445 — 1 2,150 — — Total non-designated hedges 139,462 5,078 3,485 138,505 3,508 2,940 Embedded derivatives GMWB and GMAB (3) N/A — 1,756 N/A — 851 IUL N/A — 438 N/A — 364 EIA N/A — 5 N/A — 5 Total embedded derivatives N/A — 2,199 N/A — 1,220 Total derivatives $ 139,462 $ 5,078 $ 5,684 $ 138,505 $ 3,508 $ 4,160 N/A Not applicable. (1) The fair value of freestanding derivative assets is included in Other assets on the Consolidated Balance Sheets. (2) The fair value of freestanding derivative liabilities is included in Other liabilities on the Consolidated Balance Sheets. The fair value of GMWB and GMAB, IUL, and EIA embedded derivatives is included in Policyholder account balances, future policy benefits and claims on the Consolidated Balance Sheets. (3) The fair value of the GMWB and GMAB embedded derivatives at September 30, 2016 included $1.8 billion of individual contracts in a liability position and $73 million of individual contracts in an asset position. The fair value of the GMWB and GMAB embedded derivatives at December 31, 2015 included $994 million of individual contracts in a liability position and $143 million of individual contracts in an asset position |
Schedule of Gain (Loss) on Derivative Instruments [Table Text Block] | The following tables present a summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Income: Interest Credited to Fixed Accounts Benefits, Claims, Losses and Settlement Expenses (in millions) Three Months Ended September 30, 2016 Interest rate contracts $ — $ (13 ) Equity contracts 12 (357 ) Credit contracts — (3 ) Foreign exchange contracts — (12 ) Other contracts — (9 ) GMWB and GMAB embedded derivatives — 209 IUL embedded derivatives (5 ) — Total gain (loss) $ 7 $ (185 ) Nine Months Ended September 30, 2016 Interest rate contracts $ — $ 1,191 Equity contracts 10 (518 ) Credit contracts — (34 ) Foreign exchange contracts — (66 ) Other contracts — (9 ) GMWB and GMAB embedded derivatives — (905 ) IUL embedded derivatives 12 — Total gain (loss) $ 22 $ (341 ) Three Months Ended September 30, 2015 Interest rate contracts $ — $ 536 Equity contracts (16 ) 328 Credit contracts — (10 ) Foreign exchange contracts — 6 Other contracts — (13 ) GMWB and GMAB embedded derivatives — (872 ) IUL embedded derivatives 6 — EIA embedded derivatives 1 — Total loss $ (9 ) $ (25 ) Nine Months Ended September 30, 2015 Interest rate contracts $ — $ 360 Equity contracts (17 ) 69 Credit contracts — (5 ) Foreign exchange contracts — (2 ) Other contracts — (13 ) GMWB and GMAB embedded derivatives — (628 ) IUL embedded derivatives 1 — EIA embedded derivatives 1 — Total loss $ (15 ) $ (219 ) |
Schedule of Payments to Make and Receive for Options [Table Text Block] | The following is a summary of the payments the Company is scheduled to make and receive for these options: Premiums Payable Premiums Receivable (in millions) 2016 (1) $ 89 $ 31 2017 257 76 2018 214 130 2019 260 131 2020 179 57 2021-2026 741 202 Total $ 1,740 $ 627 (1) 2016 amounts represent the amounts payable and receivable for the period from October 1, 2016 to December 31, 2016 . |
Shareholder's Equity (Tables)
Shareholder's Equity (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Stockholders' Equity Note [Abstract] | |
Schedule of components of OCI [Table Text Block] | The following tables provide the amounts related to each component of OCI: Three Months Ended September 30, 2016 2015 Pretax Income Tax Benefit (Expense) Net of Tax Pretax Income Tax Benefit (Expense) Net of Tax (in millions) Net unrealized securities losses: Net unrealized securities gains (losses) arising during the period (1) $ 75 $ (25 ) $ 50 $ (128 ) $ 45 $ (83 ) Reclassification of net securities (gains) losses included in net income (2) (1 ) — (1 ) 10 (4 ) 6 Impact of deferred acquisition costs, deferred sales inducement costs, unearned revenue, benefit reserves and reinsurance recoverables (114 ) 39 (75 ) 78 (27 ) 51 Net unrealized securities losses (40 ) 14 (26 ) (40 ) 14 (26 ) Net unrealized derivatives gains: Reclassification of net derivative losses included in net income (3) 1 — 1 1 — 1 Net unrealized derivatives gains 1 — 1 1 — 1 Other comprehensive loss $ (39 ) $ 14 $ (25 ) $ (39 ) $ 14 $ (25 ) Nine Months Ended September 30, 2016 2015 Pretax Income Tax Benefit (Expense) Net of Tax Pretax Income Tax Benefit (Expense) Net of Tax (in millions) Net unrealized securities gains (losses): Net unrealized securities gains (losses) arising during the period (1) $ 1,067 $ (375 ) $ 692 $ (545 ) $ 191 $ (354 ) Reclassification of net securities gains included in net income (2) (7 ) 2 (5 ) (7 ) 2 (5 ) Impact of deferred acquisition costs, deferred sales inducement costs, unearned revenue, benefit reserves and reinsurance recoverables (533 ) 186 (347 ) 281 (98 ) 183 Net unrealized securities gains (losses) 527 (187 ) 340 (271 ) 95 (176 ) Net unrealized derivatives gains: Reclassification of net derivative losses included in net income (3) 4 (1 ) 3 4 (1 ) 3 Net unrealized derivatives gains 4 (1 ) 3 4 (1 ) 3 Other comprehensive income (loss) $ 531 $ (188 ) $ 343 $ (267 ) $ 94 $ (173 ) (1) Includes other-than-temporary impairment losses on Available-for-Sale securities related to factors other than credit that were recognized in other comprehensive income during the period. (2) Reclassification amounts are recorded in net realized investment gains. (3) Reclassification amounts are recorded in net investment income. |
Schedule of amounts reclassified from AOCI [Table Text Block] | The following tables present the changes in the balances of each component of AOCI, net of tax: Net Unrealized Securities Gains Net Unrealized Derivatives Gains Total (in millions) Balance, July 1, 2016 $ 769 $ (6 ) $ 763 OCI before reclassifications (25 ) — (25 ) Amounts reclassified from AOCI (1 ) 1 — Total OCI (26 ) 1 (25 ) Balance, September 30, 2016 $ 743 (1) $ (5 ) $ 738 Balance, January 1, 2016 $ 403 $ (8 ) $ 395 OCI before reclassifications 345 — 345 Amounts reclassified from AOCI (5 ) 3 (2 ) Total OCI 340 3 343 Balance, September 30, 2016 $ 743 (1) $ (5 ) $ 738 Net Unrealized Securities Gains Net Unrealized Derivatives Gains Total (in millions) Balance, July 1, 2015 $ 591 $ (10 ) $ 581 OCI before reclassifications (32 ) — (32 ) Amounts reclassified from AOCI 6 1 7 Total OCI (26 ) 1 (25 ) Balance, September 30, 2015 $ 565 (1) $ (9 ) $ 556 Balance, January 1, 2015 $ 741 $ (12 ) $ 729 OCI before reclassifications (171 ) — (171 ) Amounts reclassified from AOCI (5 ) 3 (2 ) Total OCI (176 ) 3 (173 ) Balance, September 30, 2015 $ 565 (1) $ (9 ) $ 556 (1) Includes $1 million and $(1) million of noncredit related impairments on securities and net unrealized securities gains (losses) on previously impaired securities at September 30, 2016 and September 30, 2015 , respectively. |
Basis of Presentation (Details)
Basis of Presentation (Details) $ in Millions | 3 Months Ended |
Sep. 30, 2016USD ($)item | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of wholly owned subsidiaries | item | 1 |
Long Term Care Insurance [Member] | |
Quantifying Misstatement in Current Year Financial Statements [Line Items] | |
Amount of out-of-period correction of LTC reserves | $ | $ 29 |
Investments (AFS by type) (Deta
Investments (AFS by type) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 | |
Investments | |||
Amortized cost | $ 21,194 | $ 20,888 | |
Gross unrealized gains | 2,030 | 1,264 | |
Gross unrealized losses | (79) | (373) | |
Fair value | 23,145 | 21,779 | |
Noncredit OTTI | [1] | 1 | (3) |
Securities owned and pledged as collateral, fair value | 1,200 | 862 | |
Amount eligible to be repledged by counterparty | 206 | 408 | |
Corporate debt securities [Member] | |||
Investments | |||
Amortized cost | 13,134 | 13,764 | |
Gross unrealized gains | 1,477 | 891 | |
Gross unrealized losses | (38) | (281) | |
Fair value | 14,573 | 14,374 | |
Noncredit OTTI | [1] | 3 | 2 |
Residential mortgage backed securities [Member] | |||
Investments | |||
Amortized cost | 3,401 | 3,015 | |
Gross unrealized gains | 127 | 96 | |
Gross unrealized losses | (18) | (36) | |
Fair value | 3,510 | 3,075 | |
Noncredit OTTI | [1] | (5) | (8) |
Commercial mortgage backed securities [Member] | |||
Investments | |||
Amortized cost | 2,524 | 2,081 | |
Gross unrealized gains | 127 | 68 | |
Gross unrealized losses | (1) | (13) | |
Fair value | 2,650 | 2,136 | |
State and municipal obligations [Member] | |||
Investments | |||
Amortized cost | 1,072 | 1,023 | |
Gross unrealized gains | 231 | 153 | |
Gross unrealized losses | (13) | (27) | |
Fair value | 1,290 | 1,149 | |
Asset backed securities [Member] | |||
Investments | |||
Amortized cost | 805 | 748 | |
Gross unrealized gains | 34 | 33 | |
Gross unrealized losses | (5) | (5) | |
Fair value | 834 | 776 | |
Foreign government bonds and obligations [Member] | |||
Investments | |||
Amortized cost | 251 | 217 | |
Gross unrealized gains | 28 | 17 | |
Gross unrealized losses | (4) | (11) | |
Fair value | 275 | 223 | |
U.S. government and agencies obligations [Member] | |||
Investments | |||
Amortized cost | 4 | 38 | |
Gross unrealized gains | 1 | 1 | |
Fair value | 5 | 39 | |
Total fixed maturities [Member] | |||
Investments | |||
Amortized cost | 21,191 | 20,886 | |
Gross unrealized gains | 2,025 | 1,259 | |
Gross unrealized losses | (79) | (373) | |
Fair value | 23,137 | 21,772 | |
Noncredit OTTI | [1] | $ (2) | $ (6) |
Fixed maturity securities as percentage of total investments | 83.00% | 81.00% | |
Fixed maturity investments rated internally | $ 977 | $ 1,100 | |
Common stocks [Member] | |||
Investments | |||
Amortized cost | 3 | 2 | |
Gross unrealized gains | 5 | 5 | |
Fair value | 8 | 7 | |
Noncredit OTTI | [1] | $ 3 | $ 3 |
[1] | Represents the amount of other-than-temporary impairment (“OTTI”) losses in accumulated other comprehensive income (“AOCI”). Amount includes unrealized gains and losses on impaired securities subsequent to the initial impairment measurement date. These amounts are included in gross unrealized gains and losses as of the end of the period. |
Investments (Rating info) (Deta
Investments (Rating info) (Details) $ in Millions | Sep. 30, 2016USD ($)item | Dec. 31, 2015USD ($)item |
Investments | ||
Amortized cost | $ 21,191 | $ 20,886 |
Fair value | $ 23,137 | $ 21,772 |
Percentage of securities rated AAA that were GNMA, FNMA and FHLMC | 42.00% | 47.00% |
Number of holdings of other than GNMA, FNMA and FHLMC having greater than 10% of total equity | item | 0 | 0 |
AAA [Member] | ||
Investments | ||
Amortized cost | $ 5,376 | $ 4,661 |
Fair value | $ 5,625 | $ 4,806 |
Percent of total fair value | 24.00% | 22.00% |
AA [Member] | ||
Investments | ||
Amortized cost | $ 1,010 | $ 1,010 |
Fair value | $ 1,248 | $ 1,185 |
Percent of total fair value | 6.00% | 5.00% |
A [Member] | ||
Investments | ||
Amortized cost | $ 3,777 | $ 3,749 |
Fair value | $ 4,333 | $ 4,101 |
Percent of total fair value | 19.00% | 19.00% |
BBB [Member] | ||
Investments | ||
Amortized cost | $ 9,559 | $ 9,964 |
Fair value | $ 10,461 | $ 10,278 |
Percent of total fair value | 45.00% | 47.00% |
Below investment grade [Member] | ||
Investments | ||
Amortized cost | $ 1,469 | $ 1,502 |
Fair value | $ 1,470 | $ 1,402 |
Percent of total fair value | 6.00% | 7.00% |
Total fixed maturities [Member] | ||
Investments | ||
Amortized cost | $ 21,191 | $ 20,886 |
Fair value | $ 23,137 | $ 21,772 |
Percent of total fair value | 100.00% | 100.00% |
Investments (EITF info) (Detail
Investments (EITF info) (Details) $ in Millions | Sep. 30, 2016USD ($)item | Dec. 31, 2015USD ($)item |
Number of Securities | ||
Less than 12 months | item | 87 | 373 |
12 months or more | item | 116 | 114 |
Total | item | 203 | 487 |
Fair Value | ||
Less than 12 months | $ 993 | $ 5,126 |
12 months or more | 929 | 987 |
Total | 1,922 | 6,113 |
Unrealized Losses | ||
Less than 12 months | (9) | (235) |
12 months or more | (70) | (138) |
Total | $ (79) | $ (373) |
Corporate debt securities [Member] | ||
Number of Securities | ||
Less than 12 months | item | 20 | 253 |
12 months or more | item | 37 | 35 |
Total | item | 57 | 288 |
Fair Value | ||
Less than 12 months | $ 146 | $ 3,703 |
12 months or more | 361 | 300 |
Total | 507 | 4,003 |
Unrealized Losses | ||
Less than 12 months | (2) | (208) |
12 months or more | (36) | (73) |
Total | $ (38) | $ (281) |
Residential mortgage backed securities [Member] | ||
Number of Securities | ||
Less than 12 months | item | 28 | 36 |
12 months or more | item | 56 | 59 |
Total | item | 84 | 95 |
Fair Value | ||
Less than 12 months | $ 434 | $ 535 |
12 months or more | 370 | 526 |
Total | 804 | 1,061 |
Unrealized Losses | ||
Less than 12 months | (3) | (7) |
12 months or more | (15) | (29) |
Total | $ (18) | $ (36) |
Commercial mortgage backed securities [Member] | ||
Number of Securities | ||
Less than 12 months | item | 13 | 45 |
12 months or more | item | 1 | 3 |
Total | item | 14 | 48 |
Fair Value | ||
Less than 12 months | $ 190 | $ 568 |
12 months or more | 11 | 33 |
Total | 201 | 601 |
Unrealized Losses | ||
Less than 12 months | (1) | (12) |
12 months or more | 0 | (1) |
Total | $ (1) | $ (13) |
State and municipal obligations [Member] | ||
Number of Securities | ||
Less than 12 months | item | 3 | 9 |
12 months or more | item | 2 | 2 |
Total | item | 5 | 11 |
Fair Value | ||
Less than 12 months | $ 7 | $ 40 |
12 months or more | 113 | 101 |
Total | 120 | 141 |
Unrealized Losses | ||
Less than 12 months | 0 | (1) |
12 months or more | (13) | (26) |
Total | $ (13) | $ (27) |
Asset backed securities [Member] | ||
Number of Securities | ||
Less than 12 months | item | 22 | 21 |
12 months or more | item | 6 | |
Total | item | 28 | 21 |
Fair Value | ||
Less than 12 months | $ 215 | $ 241 |
12 months or more | 50 | |
Total | 265 | 241 |
Unrealized Losses | ||
Less than 12 months | (3) | (5) |
12 months or more | (2) | |
Total | $ (5) | $ (5) |
Foreign government bonds and obligations [Member] | ||
Number of Securities | ||
Less than 12 months | item | 1 | 9 |
12 months or more | item | 14 | 15 |
Total | item | 15 | 24 |
Fair Value | ||
Less than 12 months | $ 1 | $ 39 |
12 months or more | 24 | 27 |
Total | 25 | 66 |
Unrealized Losses | ||
Less than 12 months | 0 | (2) |
12 months or more | (4) | (9) |
Total | $ (4) | $ (11) |
Investments Investments (OTTI r
Investments Investments (OTTI rollforward) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Rollforward of the cumulative amounts recognized in the Consolidated Statements of Income for other-than-temporary impairments related to credit losses on securities | ||||
Beginning balance | $ 33 | $ 33 | $ 33 | $ 33 |
Credit losses for which an other-than-temporary impairment was previously recognized | 0 | 0 | 0 | 0 |
Ending balance | $ 33 | $ 33 | $ 33 | $ 33 |
Investments Investments (Realiz
Investments Investments (Realized GL info) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Available-for-sale Securities, Gross Realized Gain (Loss) [Abstract] | ||||
Gross realized investment gains | $ 5 | $ 1 | $ 18 | $ 23 |
Gross realized investment losses | (3) | (4) | (11) | (9) |
Other-than-temporary impairments | 0 | (7) | 0 | (7) |
Total | $ 2 | $ (10) | $ 7 | $ 7 |
Investments (AFS contractual ma
Investments (AFS contractual maturity) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Amortized Cost | ||
Due within one year | $ 503 | |
Due after one year through five years | 5,964 | |
Due after five years through 10 years | 4,270 | |
Due after 10 years | 3,724 | |
Total having single maturity dates | 14,461 | |
Amortized cost | 21,194 | $ 20,888 |
Fair Value | ||
Due within one year | 516 | |
Due after one year through five years | 6,414 | |
Due after five years through 10 years | 4,538 | |
Due after 10 years | 4,675 | |
Total having single maturity dates | 16,143 | |
Fair value | 23,145 | 21,779 |
Residential mortgage backed securities [Member] | ||
Amortized Cost | ||
Without single maturity dates | 3,401 | |
Amortized cost | 3,401 | 3,015 |
Fair Value | ||
Without single maturity dates | 3,510 | |
Fair value | 3,510 | 3,075 |
Commercial mortgage backed securities [Member] | ||
Amortized Cost | ||
Without single maturity dates | 2,524 | |
Amortized cost | 2,524 | 2,081 |
Fair Value | ||
Without single maturity dates | 2,650 | |
Fair value | 2,650 | 2,136 |
Asset backed securities [Member] | ||
Amortized Cost | ||
Without single maturity dates | 805 | |
Amortized cost | 805 | 748 |
Fair Value | ||
Without single maturity dates | 834 | |
Fair value | 834 | 776 |
Common stocks [Member] | ||
Amortized Cost | ||
Without single maturity dates | 3 | |
Amortized cost | 3 | 2 |
Fair Value | ||
Without single maturity dates | 8 | |
Fair value | $ 8 | $ 7 |
Investments (Net Inv Inc summar
Investments (Net Inv Inc summary) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Net Investment Income [Line Items] | ||||
Gross investment income | $ 283 | $ 306 | $ 870 | $ 931 |
Less: investment expenses | 7 | 10 | 20 | 27 |
Total | 276 | 296 | 850 | 904 |
Fixed maturities [Member] | ||||
Net Investment Income [Line Items] | ||||
Gross investment income | 249 | 257 | 751 | 783 |
Mortgage loans [Member] | ||||
Net Investment Income [Line Items] | ||||
Gross investment income | 38 | 43 | 115 | 134 |
Other investments [Member] | ||||
Net Investment Income [Line Items] | ||||
Gross investment income | $ (4) | $ 6 | $ 4 | $ 14 |
Financing Receivables (Allowanc
Financing Receivables (Allowance for Loan Losses) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Rollforward of the allowance for loan losses | |||||
Beginning balance | $ 25 | $ 28 | |||
Charge-offs | (1) | (3) | |||
Provisions | 1 | 1 | |||
Ending balance | $ 25 | $ 26 | 25 | 26 | |
Individually evaluated for impairment | 2 | 5 | 2 | 5 | |
Collectively evaluated for impairment | 23 | 21 | 23 | 21 | |
Recorded investment in financing receivables by impairment method | |||||
Individually evaluated for impairment | 14 | 14 | $ 25 | ||
Collectively evaluated for impairment | 3,284 | 3,284 | 3,657 | ||
Total | 3,298 | 3,298 | 3,682 | ||
Recorded investment in financing receivables individually evaluated for impairment with no related allowance for loan losses | 9 | 9 | $ 12 | ||
Loans purchased | 17 | 46 | 54 | 82 | |
Loans sold | $ 0 | $ 8 | $ 250 | $ 15 |
Financing Receivables (Credit Q
Financing Receivables (Credit Quality Information Text) (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016USD ($)item | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($)item | Sep. 30, 2015USD ($) | Dec. 31, 2015USD ($) | |
Credit quality information [Line Items] | |||||
Loans sold | $ 0 | $ 8 | $ 250 | $ 15 | |
Total recorded investment, gross | 3,298 | 3,298 | $ 3,682 | ||
90 days or more past due [Member] | |||||
Credit quality information [Line Items] | |||||
Nonperforming loans | 5 | 5 | 8 | ||
Commercial mortgage loans [Member] | |||||
Credit quality information [Line Items] | |||||
Total recorded investment, gross | $ 2,582 | $ 2,582 | $ 2,636 | ||
Percent of commercial mortgage loans with highest risk rating | 0.00% | 0.00% | 1.00% | ||
Residential mortgage loans [Member] | |||||
Credit quality information [Line Items] | |||||
Loans sold | $ 250 | ||||
Proceeds from sale of loans | 260 | ||||
Gain from sale of loans | 10 | ||||
Total recorded investment, gross | $ 307 | 307 | $ 594 | ||
Allowance for loan losses for residential mortgage loans | 0 | 0 | 0 | ||
Unamortized discount related to residential mortgage loans | $ 0 | $ 0 | $ 21 | ||
Percentage of residential mortgage loans below specific FICO score | 4.00% | 4.00% | 4.00% | ||
FICO Score | item | 640 | 640 | |||
Percentage of residential mortgage loans above specific LTV ratio | 0.00% | 0.00% | 1.00% | ||
LTV Ratio | 90.00% | 90.00% | |||
Percentage of residential mortgage loan portfolio represented by state of California | 52.00% | 52.00% | 37.00% | ||
Percentage of residential mortgage loan portfolio represented by state of Colorado | 19.00% | 19.00% | |||
Percentage of residential mortgage loan portfolio represented by state of Washington | 13.00% | 13.00% | |||
Syndicated Loans [Member] | |||||
Credit quality information [Line Items] | |||||
Total recorded investment, gross | $ 409 | $ 409 | $ 452 | ||
Syndicated Loans [Member] | 90 days or more past due [Member] | |||||
Credit quality information [Line Items] | |||||
Nonperforming loans | $ 4 | $ 4 | $ 5 |
Financing Receivables (Credit42
Financing Receivables (Credit Quality Information Tables) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Dec. 31, 2014 |
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | $ 3,298 | $ 3,682 | ||
Less: allowance for loan losses | 25 | 25 | $ 26 | $ 28 |
Commercial mortgage loans [Member] | ||||
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | 2,582 | 2,636 | ||
Less: allowance for loan losses | 19 | 19 | ||
Total loans, net | $ 2,563 | $ 2,617 | ||
Percentage of commercial mortgage loans | 100.00% | 100.00% | ||
Commercial mortgage loans [Member] | Retail [Member] | ||||
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | $ 927 | $ 947 | ||
Percentage of commercial mortgage loans | 36.00% | 36.00% | ||
Commercial mortgage loans [Member] | Office [Member] | ||||
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | $ 480 | $ 522 | ||
Percentage of commercial mortgage loans | 19.00% | 20.00% | ||
Commercial mortgage loans [Member] | Apartments [Member] | ||||
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | $ 475 | $ 473 | ||
Percentage of commercial mortgage loans | 18.00% | 18.00% | ||
Commercial mortgage loans [Member] | Industrial [Member] | ||||
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | $ 430 | $ 444 | ||
Percentage of commercial mortgage loans | 17.00% | 17.00% | ||
Commercial mortgage loans [Member] | Mixed use [Member] | ||||
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | $ 37 | $ 35 | ||
Percentage of commercial mortgage loans | 1.00% | 1.00% | ||
Commercial mortgage loans [Member] | Hotel [Member] | ||||
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | $ 42 | $ 34 | ||
Percentage of commercial mortgage loans | 2.00% | 1.00% | ||
Commercial mortgage loans [Member] | Other [Member] | ||||
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | $ 191 | $ 181 | ||
Percentage of commercial mortgage loans | 7.00% | 7.00% | ||
Commercial mortgage loans [Member] | South Atlantic [Member] | ||||
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | $ 740 | $ 746 | ||
Percentage of commercial mortgage loans | 29.00% | 28.00% | ||
Commercial mortgage loans [Member] | Pacific [Member] | ||||
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | $ 702 | $ 709 | ||
Percentage of commercial mortgage loans | 27.00% | 27.00% | ||
Commercial mortgage loans [Member] | Mountain [Member] | ||||
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | $ 254 | $ 242 | ||
Percentage of commercial mortgage loans | 10.00% | 9.00% | ||
Commercial mortgage loans [Member] | West North Central [Member] | ||||
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | $ 216 | $ 217 | ||
Percentage of commercial mortgage loans | 8.00% | 8.00% | ||
Commercial mortgage loans [Member] | Middle Atlantic [Member] | ||||
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | $ 190 | $ 203 | ||
Percentage of commercial mortgage loans | 7.00% | 8.00% | ||
Commercial mortgage loans [Member] | East North Central [Member] | ||||
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | $ 199 | $ 208 | ||
Percentage of commercial mortgage loans | 8.00% | 8.00% | ||
Commercial mortgage loans [Member] | West South Central [Member] | ||||
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | $ 119 | $ 128 | ||
Percentage of commercial mortgage loans | 5.00% | 5.00% | ||
Commercial mortgage loans [Member] | New England [Member] | ||||
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | $ 92 | $ 115 | ||
Percentage of commercial mortgage loans | 3.00% | 4.00% | ||
Commercial mortgage loans [Member] | East South Central [Member] | ||||
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | $ 70 | $ 68 | ||
Percentage of commercial mortgage loans | 3.00% | 3.00% |
Financing Receivables (Troubled
Financing Receivables (Troubled Debt Restructurings) (Details) - USD ($) | Sep. 30, 2016 | Sep. 30, 2015 |
Receivables [Abstract] | ||
Commitments to lend additional funds to borrowers for restructured loans | $ 0 | $ 0 |
Deferred Acquisition Costs an44
Deferred Acquisition Costs and Deferred Sales Inducement Costs (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | ||
Balances of and changes in DAC | |||
Balance at the beginning of the period | $ 2,688 | $ 2,576 | |
Capitalization of acquisition costs | 212 | [1] | 201 |
Amortization, excluding the impact of valuation assumptions review | (218) | (235) | |
Amortization, impact of valuation assumptions review | (81) | (6) | |
Impact of change in net unrealized securities (gains) losses | (105) | 64 | |
Balance at the end of the period | 2,496 | 2,600 | |
Benefit related to the write-off of the deferred reinsurance liability | 27 | ||
Balances of and changes in DSIC | |||
Balance at the beginning of the period | 334 | 361 | |
Capitalization of sales inducement costs | 4 | 3 | |
Amortization, excluding the impact of valuation assumptions review | (32) | (43) | |
Amortization, impact of valuation assumptions review | 4 | 1 | |
Impact of change in net unrealized securities (gains) losses | (14) | 10 | |
Balance at the end of the period | $ 296 | $ 332 | |
[1] | Includes a $27 million benefit related to the write-off of the deferred reinsurance liability in connection with the loss recognition on LTC business. |
Policyholder Account Balances45
Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities (Balances by product) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Policyholder account balances | $ 20,600 | $ 20,650 |
Future policy benefits | 9,945 | 8,180 |
Policy claims and other policyholders’ funds | 210 | 199 |
Total Policyholder account balances, future policy benefits and claims | 30,755 | 29,029 |
Fixed annuities [Member] | ||
Policyholder account balances | 10,729 | 11,239 |
Variable annuity fixed sub-accounts [Member] | ||
Policyholder account balances | 5,152 | 4,912 |
VUL/UL insurance [Member] | ||
Policyholder account balances | 2,978 | 2,897 |
IUL [Member] | ||
Policyholder account balances | 975 | 808 |
Other life Insurance [Member] | ||
Policyholder account balances | 766 | 794 |
Variable annuity GMWB [Member] | ||
Future policy benefits | 2,113 | 1,057 |
Variable annuity GMAB [Member] | ||
Future policy benefits | 8 | 0 |
Other annuity liabilities [Member] | ||
Future policy benefits | 143 | 31 |
Fixed annuities life contingent liabilities [Member] | ||
Future policy benefits | 1,496 | 1,501 |
EIA [Member] | ||
Future policy benefits | 26 | 27 |
Llife, disability income and long term care insurance [Member] | ||
Future policy benefits | 5,561 | 5,112 |
VUL/UL and other life insurance additional liabilities [Member] | ||
Future policy benefits | $ 598 | $ 452 |
Policyholder Account Balances46
Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities (Separate Account Liabilities) (Details 2) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Separate Accounts Liabilities Disclosure [Abstract] | ||
Variable annuity | $ 70,715 | $ 69,333 |
VUL insurance | 6,710 | 6,637 |
Other insurance | 33 | 34 |
Total | $ 77,458 | $ 76,004 |
Variable Annuity and Insuranc47
Variable Annuity and Insurance Guarantees (VA guarantee details) (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2016 | Dec. 31, 2015 | ||
GMDB [Member] | |||
Variable Annuity Guarantees by Benefit Type | |||
Total contract value | [1] | $ 74,955 | $ 73,270 |
Contract value in separate accounts | [1] | 69,854 | 68,406 |
Net amount at risk | [1] | $ 325 | $ 743 |
Weighted average attained age | [1] | 65 years | 65 years |
GMDB [Member] | Return of premium [Member] | |||
Variable Annuity Guarantees by Benefit Type | |||
Total contract value | [1] | $ 56,748 | $ 54,716 |
Contract value in separate accounts | [1] | 54,787 | 52,871 |
Net amount at risk | [1] | $ 144 | $ 297 |
Weighted average attained age | [1] | 65 years | 65 years |
GMDB [Member] | Five/six-year reset [Member] | |||
Variable Annuity Guarantees by Benefit Type | |||
Total contract value | [1] | $ 9,052 | $ 9,307 |
Contract value in separate accounts | [1] | 6,371 | 6,731 |
Net amount at risk | [1] | $ 23 | $ 78 |
Weighted average attained age | [1] | 66 years | 65 years |
GMDB [Member] | One-year ratchet [Member] | |||
Variable Annuity Guarantees by Benefit Type | |||
Total contract value | [1] | $ 6,614 | $ 6,747 |
Contract value in separate accounts | [1] | 6,237 | 6,379 |
Net amount at risk | [1] | $ 80 | $ 266 |
Weighted average attained age | [1] | 67 years | 67 years |
GMDB [Member] | Five-year ratchet [Member] | |||
Variable Annuity Guarantees by Benefit Type | |||
Total contract value | [1] | $ 1,587 | $ 1,613 |
Contract value in separate accounts | [1] | 1,527 | 1,556 |
Net amount at risk | [1] | $ 5 | $ 20 |
Weighted average attained age | [1] | 64 years | 63 years |
GMDB [Member] | Other [Member] | |||
Variable Annuity Guarantees by Benefit Type | |||
Total contract value | [1] | $ 954 | $ 887 |
Contract value in separate accounts | [1] | 932 | 869 |
Net amount at risk | [1] | $ 73 | $ 82 |
Weighted average attained age | [1] | 71 years | 71 years |
GGU death benefit [Member] | |||
Variable Annuity Guarantees by Benefit Type | |||
Total contract value | [1] | $ 1,063 | $ 1,056 |
Contract value in separate accounts | [1] | 1,011 | 1,004 |
Net amount at risk | [1] | $ 111 | $ 113 |
Weighted average attained age | [1] | 68 years | 67 years |
GMIB [Member] | |||
Variable Annuity Guarantees by Benefit Type | |||
Total contract value | [1] | $ 251 | $ 270 |
Contract value in separate accounts | [1] | 233 | 251 |
Net amount at risk | [1] | $ 12 | $ 17 |
Weighted average attained age | [1] | 68 years | 68 years |
GMWB [Member] | |||
Variable Annuity Guarantees by Benefit Type | |||
Total contract value | [1] | $ 42,457 | $ 40,419 |
Contract value in separate accounts | [1] | 42,304 | 40,288 |
Net amount at risk | [1] | $ 358 | $ 332 |
Weighted average attained age | [1] | 66 years | 66 years |
GMWB [Member] | GMWB [Member] | |||
Variable Annuity Guarantees by Benefit Type | |||
Total contract value | [1] | $ 2,805 | $ 3,118 |
Contract value in separate accounts | [1] | 2,796 | 3,109 |
Net amount at risk | [1] | $ 2 | $ 2 |
Weighted average attained age | [1] | 70 years | 69 years |
GMWB [Member] | GMWB for life [Member] | |||
Variable Annuity Guarantees by Benefit Type | |||
Total contract value | [1] | $ 39,652 | $ 37,301 |
Contract value in separate accounts | [1] | 39,508 | 37,179 |
Net amount at risk | [1] | $ 356 | $ 330 |
Weighted average attained age | [1] | 66 years | 66 years |
GMAB [Member] | |||
Variable Annuity Guarantees by Benefit Type | |||
Total contract value | [1] | $ 3,689 | $ 4,018 |
Contract value in separate accounts | [1] | 3,681 | 4,006 |
Net amount at risk | [1] | $ 14 | $ 31 |
Weighted average attained age | [1] | 59 years | 58 years |
[1] | Individual variable annuity contracts may have more than one guarantee and therefore may be included in more than one benefit type. Variable annuity contracts for which the death benefit equals the account value are not shown in this table. |
Variable Annuity and Insuranc48
Variable Annuity and Insurance Guarantees Variable Annuity and Insurance Guarantees (UL Secondary Guarantees) (Details) - UL secondary guarantees [Member] - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Insurance Guarantees by Benefit Type | ||
Net amount at risk | $ 6,339 | $ 6,601 |
Weighted average attained age | 64 years | 63 years |
Variable Annuity and Insuranc49
Variable Annuity and Insurance Guarantees (Liability rollforward) (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | ||
GMDB & GGU [Member] | |||
Changes in additional liabilities for variable annuity and insurance guarantees | |||
Balance at the beginning of the period | $ 14 | $ 9 | |
Incurred claims | 10 | 9 | |
Paid claims | (7) | (3) | |
Balance at the end of the period | 17 | 15 | |
GMIB [Member] | |||
Changes in additional liabilities for variable annuity and insurance guarantees | |||
Balance at the beginning of the period | 8 | 7 | |
Balance at the end of the period | 8 | 7 | |
GMWB [Member] | |||
Changes in additional liabilities for variable annuity and insurance guarantees | |||
Balance at the beginning of the period | [1] | 1,057 | 693 |
Incurred claims | [1] | 1,056 | 580 |
Balance at the end of the period | [1] | 2,113 | 1,273 |
GMAB [Member] | |||
Changes in additional liabilities for variable annuity and insurance guarantees | |||
Balance at the beginning of the period | [1] | 0 | (41) |
Incurred claims | [1] | 9 | 72 |
Paid claims | [1] | (1) | |
Balance at the end of the period | [1] | 8 | 31 |
UL [Member] | |||
Changes in additional liabilities for variable annuity and insurance guarantees | |||
Balance at the beginning of the period | 332 | 263 | |
Incurred claims | 99 | 70 | |
Paid claims | (18) | (19) | |
Balance at the end of the period | $ 413 | $ 314 | |
[1] | The incurred claims for GMWB and GMAB represent the total change in the liabilities (contra liabilities). |
Variable Annuity and Insuranc50
Variable Annuity and Insurance Guarantees (Separate account balance by type) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Mutual funds | ||
Variable Annuity and Insurance Guarantees | ||
Total mutual funds | $ 70,173 | $ 68,747 |
Equity [Member] | ||
Variable Annuity and Insurance Guarantees | ||
Total mutual funds | 40,872 | 39,806 |
Bond [Member] | ||
Variable Annuity and Insurance Guarantees | ||
Total mutual funds | 23,875 | 23,700 |
Other [Member] | ||
Variable Annuity and Insurance Guarantees | ||
Total mutual funds | $ 5,426 | $ 5,241 |
Short-term Borrowings (Details)
Short-term Borrowings (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Borrowings | ||
Amount of the liability including accrued interest | $ 200 | $ 200 |
Securities sold under agreements to repurchase [Member] | ||
Borrowings | ||
Amount of the liability including accrued interest | $ 50 | $ 50 |
Remaining maturity of outstanding amount for short-term borrowings | 2 months | 1 month |
Weighted average annualized interest rate | 0.70% | 0.50% |
Federal Home Loan Bank advances [Member] | ||
Borrowings | ||
Amount of the liability including accrued interest | $ 150 | $ 150 |
Remaining maturity of outstanding amount for short-term borrowings | 3 months | |
Weighted average annualized interest rate | 0.60% | 0.50% |
Residential mortgage backed securities [Member] | Securities sold under agreements to repurchase [Member] | ||
Borrowings | ||
Fair value of securities pledged | $ 31 | $ 30 |
Commercial mortgage backed securities [Member] | Securities sold under agreements to repurchase [Member] | ||
Borrowings | ||
Fair value of securities pledged | 21 | 22 |
Commercial mortgage backed securities [Member] | Federal Home Loan Bank advances [Member] | ||
Borrowings | ||
Fair value of securities pledged | $ 751 | $ 290 |
Fair Values of Assets and Lia52
Fair Values of Assets and Liabilities (Assets & liabilities reported at FV) (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2016 | Dec. 31, 2015 | ||||
Assets and liabilities measured at fair value | |||||
Derivative liability, fair value, gross liability | [1] | $ 5,684 | $ 4,160 | ||
Derivative asset, fair value, gross asset | [2] | 5,078 | 3,508 | ||
Cumulative decrease in embedded derivatives due to nonperformance | 764 | 398 | |||
Assets | |||||
Available-for-sale securities: fixed maturities | 23,137 | 21,772 | |||
Common stocks | 8 | 7 | |||
Separate account assets measured at NAV | 77,458 | 76,004 | |||
GMWB and GMAB embedded derivatives [Member] | |||||
Assets and liabilities measured at fair value | |||||
Derivative liability, fair value, gross liability | 1,800 | 994 | |||
Derivative asset, fair value, gross asset | 73 | 143 | |||
Recurring basis [Member] | |||||
Assets | |||||
Available-for-sale securities: fixed maturities | 23,137 | 21,772 | |||
Common stocks | 8 | 7 | |||
Cash equivalents | 928 | 333 | |||
Other assets | 5,078 | 3,508 | |||
Separate account assets measured at NAV | 77,458 | [3] | 76,004 | [4] | |
Total assets at fair value | 106,609 | 101,624 | |||
Liabilities | |||||
Policyholder account balances, future policy benefits and claims | 2,199 | [5] | 1,220 | [6] | |
Other liabilities | 3,485 | 2,940 | |||
Total liabilities at fair value | 5,684 | 4,160 | |||
Recurring basis [Member] | Interest rate derivative contracts [Member] | |||||
Assets | |||||
Other assets | 3,593 | 1,882 | |||
Liabilities | |||||
Other liabilities | 1,603 | 948 | |||
Recurring basis [Member] | Equity derivative contracts [Member] | |||||
Assets | |||||
Other assets | 1,413 | 1,569 | |||
Liabilities | |||||
Other liabilities | 1,846 | 1,975 | |||
Recurring basis [Member] | Credit derivative contracts [Member] | |||||
Assets | |||||
Other assets | 1 | 2 | |||
Recurring basis [Member] | Foreign exchange derivatives contracts [Member] | |||||
Assets | |||||
Other assets | 71 | 55 | |||
Liabilities | |||||
Other liabilities | 35 | 17 | |||
Recurring basis [Member] | Other derivative contracts [Member] | |||||
Liabilities | |||||
Other liabilities | 1 | ||||
Recurring basis [Member] | EIA embedded derivatives [Member] | |||||
Liabilities | |||||
Policyholder account balances, future policy benefits and claims | 5 | 5 | |||
Recurring basis [Member] | IUL embedded derivatives [Member] | |||||
Liabilities | |||||
Policyholder account balances, future policy benefits and claims | 438 | 364 | |||
Recurring basis [Member] | GMWB and GMAB embedded derivatives [Member] | |||||
Liabilities | |||||
Policyholder account balances, future policy benefits and claims | 1,756 | [7] | 851 | [8] | |
Recurring basis [Member] | Corporate debt securities [Member] | |||||
Assets | |||||
Available-for-sale securities: fixed maturities | 14,573 | 14,374 | |||
Recurring basis [Member] | Residential mortgage backed securities [Member] | |||||
Assets | |||||
Available-for-sale securities: fixed maturities | 3,510 | 3,075 | |||
Recurring basis [Member] | Commercial mortgage backed securities [Member] | |||||
Assets | |||||
Available-for-sale securities: fixed maturities | 2,650 | 2,136 | |||
Recurring basis [Member] | State and municipal obligations [Member] | |||||
Assets | |||||
Available-for-sale securities: fixed maturities | 1,290 | 1,149 | |||
Recurring basis [Member] | Asset backed securities [Member] | |||||
Assets | |||||
Available-for-sale securities: fixed maturities | 834 | 776 | |||
Recurring basis [Member] | Foreign government bonds and obligations [Member] | |||||
Assets | |||||
Available-for-sale securities: fixed maturities | 275 | 223 | |||
Recurring basis [Member] | U.S. government and agencies obligations [Member] | |||||
Assets | |||||
Available-for-sale securities: fixed maturities | 5 | 39 | |||
Recurring basis [Member] | Level 1 [Member] | |||||
Assets | |||||
Available-for-sale securities: fixed maturities | 3 | 4 | |||
Common stocks | 3 | 3 | |||
Cash equivalents | 48 | ||||
Other assets | 59 | 93 | |||
Total assets at fair value | 65 | 148 | |||
Liabilities | |||||
Other liabilities | 4 | 46 | |||
Total liabilities at fair value | 4 | 46 | |||
Recurring basis [Member] | Level 1 [Member] | Interest rate derivative contracts [Member] | |||||
Assets | |||||
Other assets | 2 | ||||
Recurring basis [Member] | Level 1 [Member] | Equity derivative contracts [Member] | |||||
Assets | |||||
Other assets | 56 | 92 | |||
Liabilities | |||||
Other liabilities | 3 | 45 | |||
Recurring basis [Member] | Level 1 [Member] | Foreign exchange derivatives contracts [Member] | |||||
Assets | |||||
Other assets | 1 | 1 | |||
Liabilities | |||||
Other liabilities | 1 | ||||
Recurring basis [Member] | Level 1 [Member] | Other derivative contracts [Member] | |||||
Liabilities | |||||
Other liabilities | 1 | ||||
Recurring basis [Member] | Level 1 [Member] | U.S. government and agencies obligations [Member] | |||||
Assets | |||||
Available-for-sale securities: fixed maturities | 3 | 4 | |||
Recurring basis [Member] | Level 2 [Member] | |||||
Assets | |||||
Available-for-sale securities: fixed maturities | 21,670 | 20,376 | |||
Common stocks | 5 | 4 | |||
Cash equivalents | 928 | 285 | |||
Other assets | 5,019 | 3,415 | |||
Total assets at fair value | 27,622 | 24,080 | |||
Liabilities | |||||
Policyholder account balances, future policy benefits and claims | 5 | 5 | |||
Other liabilities | 3,481 | 2,894 | |||
Total liabilities at fair value | 3,486 | 2,899 | |||
Recurring basis [Member] | Level 2 [Member] | Interest rate derivative contracts [Member] | |||||
Assets | |||||
Other assets | 3,591 | 1,882 | |||
Liabilities | |||||
Other liabilities | 1,603 | 948 | |||
Recurring basis [Member] | Level 2 [Member] | Equity derivative contracts [Member] | |||||
Assets | |||||
Other assets | 1,357 | 1,477 | |||
Liabilities | |||||
Other liabilities | 1,843 | 1,930 | |||
Recurring basis [Member] | Level 2 [Member] | Credit derivative contracts [Member] | |||||
Assets | |||||
Other assets | 1 | 2 | |||
Recurring basis [Member] | Level 2 [Member] | Foreign exchange derivatives contracts [Member] | |||||
Assets | |||||
Other assets | 70 | 54 | |||
Liabilities | |||||
Other liabilities | 35 | 16 | |||
Recurring basis [Member] | Level 2 [Member] | EIA embedded derivatives [Member] | |||||
Liabilities | |||||
Policyholder account balances, future policy benefits and claims | 5 | 5 | |||
Recurring basis [Member] | Level 2 [Member] | Corporate debt securities [Member] | |||||
Assets | |||||
Available-for-sale securities: fixed maturities | 13,380 | 13,139 | |||
Recurring basis [Member] | Level 2 [Member] | Residential mortgage backed securities [Member] | |||||
Assets | |||||
Available-for-sale securities: fixed maturities | 3,390 | 3,054 | |||
Recurring basis [Member] | Level 2 [Member] | Commercial mortgage backed securities [Member] | |||||
Assets | |||||
Available-for-sale securities: fixed maturities | 2,617 | 2,133 | |||
Recurring basis [Member] | Level 2 [Member] | State and municipal obligations [Member] | |||||
Assets | |||||
Available-for-sale securities: fixed maturities | 1,290 | 1,149 | |||
Recurring basis [Member] | Level 2 [Member] | Asset backed securities [Member] | |||||
Assets | |||||
Available-for-sale securities: fixed maturities | 716 | 643 | |||
Recurring basis [Member] | Level 2 [Member] | Foreign government bonds and obligations [Member] | |||||
Assets | |||||
Available-for-sale securities: fixed maturities | 275 | 223 | |||
Recurring basis [Member] | Level 2 [Member] | U.S. government and agencies obligations [Member] | |||||
Assets | |||||
Available-for-sale securities: fixed maturities | 2 | 35 | |||
Recurring basis [Member] | Level 3 [Member] | |||||
Assets | |||||
Available-for-sale securities: fixed maturities | 1,464 | 1,392 | |||
Total assets at fair value | 1,464 | 1,392 | |||
Liabilities | |||||
Policyholder account balances, future policy benefits and claims | 2,194 | 1,215 | |||
Total liabilities at fair value | 2,194 | 1,215 | |||
Recurring basis [Member] | Level 3 [Member] | IUL embedded derivatives [Member] | |||||
Liabilities | |||||
Policyholder account balances, future policy benefits and claims | 438 | 364 | |||
Recurring basis [Member] | Level 3 [Member] | GMWB and GMAB embedded derivatives [Member] | |||||
Liabilities | |||||
Policyholder account balances, future policy benefits and claims | 1,756 | 851 | |||
Recurring basis [Member] | Level 3 [Member] | Corporate debt securities [Member] | |||||
Assets | |||||
Available-for-sale securities: fixed maturities | 1,193 | 1,235 | |||
Recurring basis [Member] | Level 3 [Member] | Residential mortgage backed securities [Member] | |||||
Assets | |||||
Available-for-sale securities: fixed maturities | 120 | 21 | |||
Recurring basis [Member] | Level 3 [Member] | Commercial mortgage backed securities [Member] | |||||
Assets | |||||
Available-for-sale securities: fixed maturities | 33 | 3 | |||
Recurring basis [Member] | Level 3 [Member] | Asset backed securities [Member] | |||||
Assets | |||||
Available-for-sale securities: fixed maturities | 118 | 133 | |||
Policyholder Account Balances, Future Policy Benefits and Claims [Member] | EIA embedded derivatives [Member] | |||||
Assets and liabilities measured at fair value | |||||
Derivative liability, fair value, gross liability | [1] | 5 | 5 | ||
Policyholder Account Balances, Future Policy Benefits and Claims [Member] | IUL embedded derivatives [Member] | |||||
Assets and liabilities measured at fair value | |||||
Derivative liability, fair value, gross liability | [1] | 438 | 364 | ||
Policyholder Account Balances, Future Policy Benefits and Claims [Member] | GMWB and GMAB embedded derivatives [Member] | |||||
Assets and liabilities measured at fair value | |||||
Derivative liability, fair value, gross liability | [1],[9] | 1,756 | 851 | ||
Policyholder Account Balances, Future Policy Benefits and Claims [Member] | Guaranteed Minimum Withdrawal Benefit and Accumulation Benefit [Member] | GMWB and GMAB embedded derivatives [Member] | |||||
Assets and liabilities measured at fair value | |||||
Derivative liability, fair value, gross liability | 1,800 | 994 | |||
Derivative asset, fair value, gross asset | $ 73 | $ 143 | |||
[1] | The fair value of freestanding derivative liabilities is included in Other liabilities on the Consolidated Balance Sheets. The fair value of GMWB and GMAB, IUL, and EIA embedded derivatives is included in Policyholder account balances, future policy benefits and claims on the Consolidated Balance Sheets. | ||||
[2] | The fair value of freestanding derivative assets is included in Other assets on the Consolidated Balance Sheets. | ||||
[3] | Amounts are comprised of certain investments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient and have not been classified in the fair value hierarchy. See Note 2 for further information. | ||||
[4] | Amounts are comprised of certain investments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient and have not been classified in the fair value hierarchy. See Note 2 for further information. | ||||
[5] | The Company’s adjustment for nonperformance risk resulted in a $764 million cumulative decrease to the embedded derivatives. | ||||
[6] | The Company’s adjustment for nonperformance risk resulted in a $398 million cumulative decrease to the embedded derivatives. | ||||
[7] | The fair value of the GMWB and GMAB embedded derivatives included $1.8 billion of individual contracts in a liability position and $73 million of individual contracts in an asset position. | ||||
[8] | The fair value of the GMWB and GMAB embedded derivatives included $994 million of individual contracts in a liability position and $143 million of individual contracts in an asset position. | ||||
[9] | The fair value of the GMWB and GMAB embedded derivatives at September 30, 2016 included $1.8 billion of individual contracts in a liability position and $73 million of individual contracts in an asset position. The fair value of the GMWB and GMAB embedded derivatives at December 31, 2015 included $994 million of individual contracts in a liability position and $143 million of individual contracts in an asset position. |
Fair Values of Assets and Lia53
Fair Values of Assets and Liabilities (Level 3 rollforwards-Assets) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | ||
Corporate debt securities [Member] | |||||
Summary of changes in Level 3 assets measured at fair value on a recurring basis [Rollforward] | |||||
Balance, at the beginning of the period | $ 1,197 | $ 1,339 | $ 1,235 | $ 1,353 | |
Total gains (losses) included in net income | (1) | (1) | (1) | (1) | |
Total gains (losses) included in other comprehensive income | (2) | (3) | 26 | (10) | |
Purchases | 20 | 91 | 34 | 142 | |
Settlements | (21) | (89) | (101) | (147) | |
Balance, at the end of the period | 1,193 | 1,337 | 1,193 | 1,337 | |
Residential mortgage backed securities [Member] | |||||
Summary of changes in Level 3 assets measured at fair value on a recurring basis [Rollforward] | |||||
Balance, at the beginning of the period | 15 | 8 | 21 | 9 | |
Purchases | 106 | 37 | 106 | 68 | |
Settlements | (1) | (1) | (7) | (2) | |
Transfers out of Level 3 | (31) | ||||
Balance, at the end of the period | 120 | 44 | 120 | 44 | |
Commercial mortgage backed securities [Member] | |||||
Summary of changes in Level 3 assets measured at fair value on a recurring basis [Rollforward] | |||||
Balance, at the beginning of the period | 0 | 34 | 3 | 90 | |
Purchases | 33 | 42 | 31 | ||
Settlements | (2) | (3) | (4) | ||
Transfers into Level 3 | 6 | ||||
Transfers out of Level 3 | (27) | (9) | (118) | ||
Balance, at the end of the period | 33 | 5 | 33 | 5 | |
Asset backed securities [Member] | |||||
Summary of changes in Level 3 assets measured at fair value on a recurring basis [Rollforward] | |||||
Balance, at the beginning of the period | 130 | 118 | 133 | 151 | |
Total gains (losses) included in net income | 1 | 1 | 1 | 1 | |
Total gains (losses) included in other comprehensive income | 2 | 2 | |||
Purchases | 1 | ||||
Settlements | (1) | (1) | (2) | ||
Transfers into Level 3 | 12 | ||||
Transfers out of Level 3 | (12) | (13) | (27) | (45) | |
Balance, at the end of the period | 118 | 108 | 118 | 108 | |
Available-for-sale securities: fixed maturities [Member] | |||||
Summary of changes in Level 3 assets measured at fair value on a recurring basis [Rollforward] | |||||
Balance, at the beginning of the period | 1,342 | 1,499 | 1,392 | 1,603 | |
Total gains (losses) included in net income | [1] | 0 | 0 | 0 | 0 |
Total gains (losses) included in other comprehensive income | (2) | (1) | 26 | (8) | |
Purchases | 159 | 128 | 182 | 242 | |
Settlements | (23) | (92) | (112) | (155) | |
Transfers into Level 3 | 12 | 6 | |||
Transfers out of Level 3 | (12) | (40) | (36) | (194) | |
Balance, at the end of the period | 1,464 | 1,494 | 1,464 | 1,494 | |
Other derivative contracts [Member] | |||||
Summary of changes in Level 3 assets measured at fair value on a recurring basis [Rollforward] | |||||
Balance, at the beginning of the period | 2 | 0 | |||
Total gains (losses) included in net income | [2] | (2) | (2) | ||
Purchases | 2 | ||||
Balance, at the end of the period | 0 | 0 | |||
Common stocks [Member] | |||||
Summary of changes in Level 3 assets measured at fair value on a recurring basis [Rollforward] | |||||
Balance, at the beginning of the period | 1 | ||||
Total gains (losses) included in other comprehensive income | (1) | ||||
Balance, at the end of the period | 0 | 0 | |||
Net investment income [Member] | Corporate debt securities [Member] | |||||
Summary of changes in Level 3 assets measured at fair value on a recurring basis [Rollforward] | |||||
Changes in unrealized gains (losses) relating to assets held at end of period | (1) | (1) | (1) | (1) | |
Net investment income [Member] | Asset backed securities [Member] | |||||
Summary of changes in Level 3 assets measured at fair value on a recurring basis [Rollforward] | |||||
Changes in unrealized gains (losses) relating to assets held at end of period | 1 | 1 | 1 | 1 | |
Net investment income [Member] | Available-for-sale securities: fixed maturities [Member] | |||||
Summary of changes in Level 3 assets measured at fair value on a recurring basis [Rollforward] | |||||
Changes in unrealized gains (losses) relating to assets held at end of period | 0 | $ 0 | 0 | $ 0 | |
Benefits, claims, losses and settlement expenses [Member] | Other derivative contracts [Member] | |||||
Summary of changes in Level 3 assets measured at fair value on a recurring basis [Rollforward] | |||||
Changes in unrealized gains (losses) relating to assets held at end of period | $ (2) | $ (2) | |||
[1] | Included in net investment income in the Consolidated Statements of Income. | ||||
[2] | Included in benefits, claims, losses and settlement expenses in the Consolidated Statements of Income. |
Fair Values of Assets and Lia54
Fair Values of Assets and Liabilities (Level 3 rollforwards-Liabilities) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | ||
Summary of changes in Level 3 liabilities measured at fair value on a recurring basis [Rollforward] | |||||
Net increase to pretax income from embedded derivative liability | $ 8 | $ 162 | $ 295 | $ 154 | |
IUL embedded derivatives [Member] | |||||
Summary of changes in Level 3 liabilities measured at fair value on a recurring basis [Rollforward] | |||||
Balance at the beginning of the period | 408 | 292 | 364 | 242 | |
Total (gains) losses included in net income | [1] | 12 | (1) | 8 | 13 |
Issues | 25 | 31 | 86 | 76 | |
Settlements | (7) | (5) | (20) | (14) | |
Balance at the end of the period | 438 | 317 | 438 | 317 | |
GMWB and GMAB embedded derivatives [Member] | |||||
Summary of changes in Level 3 liabilities measured at fair value on a recurring basis [Rollforward] | |||||
Balance at the beginning of the period | 1,965 | 235 | 851 | 479 | |
Total (gains) losses included in net income | [2] | (280) | 805 | 708 | 426 |
Issues | 77 | 69 | 215 | 197 | |
Settlements | (6) | (2) | (18) | 5 | |
Balance at the end of the period | 1,756 | 1,107 | 1,756 | 1,107 | |
Total [Member] | |||||
Summary of changes in Level 3 liabilities measured at fair value on a recurring basis [Rollforward] | |||||
Balance at the beginning of the period | 2,373 | 527 | 1,215 | 721 | |
Total (gains) losses included in net income | (268) | 804 | 716 | 439 | |
Issues | 102 | 100 | 301 | 273 | |
Settlements | (13) | (7) | (38) | (9) | |
Balance at the end of the period | 2,194 | 1,424 | 2,194 | 1,424 | |
Benefits, claims, losses and settlement expenses [Member] | GMWB and GMAB embedded derivatives [Member] | |||||
Summary of changes in Level 3 liabilities measured at fair value on a recurring basis [Rollforward] | |||||
Changes in unrealized (gains) losses relating to liabilities held at the end of the period | (267) | 811 | 830 | 438 | |
Benefits, claims, losses and settlement expenses [Member] | Total [Member] | |||||
Summary of changes in Level 3 liabilities measured at fair value on a recurring basis [Rollforward] | |||||
Changes in unrealized (gains) losses relating to liabilities held at the end of the period | (267) | 811 | 830 | 438 | |
Interest credited to fixed accounts [Member] | IUL embedded derivatives [Member] | |||||
Summary of changes in Level 3 liabilities measured at fair value on a recurring basis [Rollforward] | |||||
Changes in unrealized (gains) losses relating to liabilities held at the end of the period | 12 | (1) | 8 | 13 | |
Interest credited to fixed accounts [Member] | Total [Member] | |||||
Summary of changes in Level 3 liabilities measured at fair value on a recurring basis [Rollforward] | |||||
Changes in unrealized (gains) losses relating to liabilities held at the end of the period | $ 12 | $ (1) | $ 8 | $ 13 | |
[1] | Included in interest credited to fixed accounts in the Consolidated Statements of Income. | ||||
[2] | Included in benefits, claims, losses and settlement expenses in the Consolidated Statements of Income. |
Fair Values of Assets and Lia55
Fair Values of Assets and Liabilities (Unobservable inputs) (Details) - Discounted cash flow technique [Member] - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2016 | Dec. 31, 2015 | ||
IUL embedded derivatives [Member] | |||
Fair values of assets and liabilities | |||
IUL and GMWB and GMAB embedded derivatives, Fair Value | $ 438 | $ 364 | |
Nonperformance risk (as a percent) | [1] | 0.89% | 0.68% |
GMWB and GMAB embedded derivatives [Member] | |||
Fair values of assets and liabilities | |||
IUL and GMWB and GMAB embedded derivatives, Fair Value | $ 1,756 | $ 851 | |
Nonperformance risk (as a percent) | [1] | 0.89% | 0.68% |
GMWB and GMAB embedded derivatives [Member] | Minimum [Member] | |||
Fair values of assets and liabilities | |||
Utilization of guaranteed withdrawals (as a percent) | [2] | 0.00% | 0.00% |
Surrender rate (as a percent) | 0.10% | 0.00% | |
Market volatility rate (as a percent) | [3] | 5.40% | 5.40% |
GMWB and GMAB embedded derivatives [Member] | Maximum [Member] | |||
Fair values of assets and liabilities | |||
Utilization of guaranteed withdrawals (as a percent) | [2] | 75.60% | 75.60% |
Surrender rate (as a percent) | 66.40% | 59.10% | |
Market volatility rate (as a percent) | [3] | 21.60% | 21.50% |
Corporate debt securities [Member] | |||
Fair values of assets and liabilities | |||
Corporate debt securities (private placement), Fair Value | $ 1,190 | $ 1,221 | |
Corporate debt securities [Member] | Minimum [Member] | |||
Fair values of assets and liabilities | |||
Yield/spread to U.S. Treasuries (as a percent) | 1.00% | 1.10% | |
Corporate debt securities [Member] | Maximum [Member] | |||
Fair values of assets and liabilities | |||
Yield/spread to U.S. Treasuries (as a percent) | 3.00% | 3.80% | |
Corporate debt securities [Member] | Weighted average [Member] | |||
Fair values of assets and liabilities | |||
Yield/spread to U.S. Treasuries (as a percent) | 1.40% | 1.60% | |
[1] | The nonperformance risk is the spread added to the observable interest rates used in the valuation of the embedded derivatives. | ||
[2] | The utilization of guaranteed withdrawals represents the percentage of contractholders that will begin withdrawing in any given year. | ||
[3] | Market volatility is implied volatility of fund of funds and managed volatility funds. |
Fair Values of Assets and Lia56
Fair Values of Assets and Liabilities (Financial Instruments not at FV) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 | |
Financial Assets | |||
Mortgage loans, net | $ 2,870 | $ 3,211 | |
Policy loans | 835 | 823 | |
Other investments | 995 | 998 | |
Financial Liabilities | |||
Policyholder account balances, future policy benefits and claims | 30,755 | 29,029 | |
Short-term borrowings | 200 | 200 | |
Other liabilities | 5,159 | 4,058 | |
Separate account liabilities measured at NAV | 77,458 | 76,004 | |
Carrying value [Member] | |||
Financial Assets | |||
Mortgage loans, net | 2,870 | 3,211 | |
Policy loans | 835 | 823 | |
Other investments | 419 | 463 | |
Financial Liabilities | |||
Policyholder account balances, future policy benefits and claims | 11,071 | 11,523 | |
Short-term borrowings | 200 | 200 | |
Other liabilities | 160 | 117 | |
Separate account liabilities measured at NAV | 344 | 360 | |
Recurring basis [Member] | |||
Financial Assets | |||
Mortgage loans, net | 2,991 | 3,254 | |
Policy loans | 810 | 803 | |
Other investments | 420 | 449 | |
Financial Liabilities | |||
Policyholder account balances, future policy benefits and claims | 12,083 | 12,424 | |
Short-term borrowings | 200 | 200 | |
Other liabilities | 156 | 113 | |
Separate account liabilities measured at NAV | [1] | 344 | 360 |
Recurring basis [Member] | Level 2 [Member] | |||
Financial Assets | |||
Other investments | 383 | 416 | |
Financial Liabilities | |||
Short-term borrowings | 200 | 200 | |
Recurring basis [Member] | Level 3 [Member] | |||
Financial Assets | |||
Mortgage loans, net | 2,991 | 3,254 | |
Policy loans | 810 | 803 | |
Other investments | 37 | 33 | |
Financial Liabilities | |||
Policyholder account balances, future policy benefits and claims | 12,083 | 12,424 | |
Other liabilities | $ 156 | $ 113 | |
[1] | (1) Amounts are comprised of certain investments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient and have not been classified in the fair value hierarchy. See Note 2 for further information. |
Offsetting Assets and Liabili57
Offsetting Assets and Liabilities (Assets) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 | |
Derivatives: | |||
Gross amounts of recognized assets | [1] | $ 5,078 | $ 3,508 |
Gross Amounts Not Offset in the Consolidated Balance Sheets | |||
Financial instruments | [2] | (3,318) | (2,609) |
Cash collateral | (882) | (456) | |
Securities collateral | (856) | (320) | |
Net amount | 22 | 123 | |
OTC derivatives [Member] | |||
Derivatives: | |||
Gross amounts of recognized assets | 3,957 | 3,051 | |
Gross Amounts Not Offset in the Consolidated Balance Sheets | |||
Financial instruments | [2] | (2,442) | (2,293) |
Cash collateral | (659) | (354) | |
Securities collateral | (856) | (320) | |
Net amount | 0 | 84 | |
OTC cleared derivatives [Member] | |||
Derivatives: | |||
Gross amounts of recognized assets | 1,098 | 417 | |
Gross Amounts Not Offset in the Consolidated Balance Sheets | |||
Financial instruments | [2] | (874) | (313) |
Cash collateral | (223) | (102) | |
Net amount | 1 | 2 | |
Exchange-traded derivatives [Member] | |||
Derivatives: | |||
Gross amounts of recognized assets | 23 | 40 | |
Gross Amounts Not Offset in the Consolidated Balance Sheets | |||
Financial instruments | [2] | (2) | (3) |
Net amount | $ 21 | $ 37 | |
[1] | The fair value of freestanding derivative assets is included in Other assets on the Consolidated Balance Sheets. | ||
[2] | Represents the amount of assets that could be offset by liabilities with the same counterparty under master netting or similar arrangements that management elects not to offset on the Consolidated Balance Sheets. |
Offsetting Assets and Liabili58
Offsetting Assets and Liabilities (Liabilities) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 | |
Derivatives | |||
Gross amounts of recognized liabilities | [1] | $ 5,684 | $ 4,160 |
Repurchase agreements | |||
Gross amounts of recognized liabilities | 50 | 50 | |
Gross Amounts Not Offset in the Consolidated Balance Sheets | |||
Securities collateral | (50) | (50) | |
Net amount | 0 | 0 | |
Total | |||
Gross amounts of recognized liabilities | 3,535 | 2,990 | |
Gross Amounts Not Offset in the Consolidated Balance Sheets | |||
Financial instruments | [2] | (3,318) | (2,609) |
Cash collateral | 0 | 0 | |
Securities collateral | (203) | (381) | |
Net amount | 14 | 0 | |
OTC derivatives [Member] | |||
Derivatives | |||
Gross amounts of recognized liabilities | 2,609 | 2,624 | |
Gross Amounts Not Offset in the Consolidated Balance Sheets | |||
Financial instruments | [2] | (2,442) | (2,293) |
Securities collateral | (153) | (331) | |
Net amount | 14 | 0 | |
OTC cleared derivatives [Member] | |||
Derivatives | |||
Gross amounts of recognized liabilities | 874 | 313 | |
Gross Amounts Not Offset in the Consolidated Balance Sheets | |||
Financial instruments | [2] | (874) | (313) |
Net amount | 0 | 0 | |
Exchange-traded derivatives [Member] | |||
Derivatives | |||
Gross amounts of recognized liabilities | 2 | 3 | |
Gross Amounts Not Offset in the Consolidated Balance Sheets | |||
Financial instruments | [2] | (2) | (3) |
Net amount | 0 | 0 | |
Total derivatives [Member] | |||
Derivatives | |||
Gross amounts of recognized liabilities | 3,485 | 2,940 | |
Gross Amounts Not Offset in the Consolidated Balance Sheets | |||
Financial instruments | [2] | (3,318) | (2,609) |
Cash collateral | 0 | 0 | |
Securities collateral | (153) | (331) | |
Net amount | $ 14 | $ 0 | |
[1] | The fair value of freestanding derivative liabilities is included in Other liabilities on the Consolidated Balance Sheets. The fair value of GMWB and GMAB, IUL, and EIA embedded derivatives is included in Policyholder account balances, future policy benefits and claims on the Consolidated Balance Sheets. | ||
[2] | Represents the amount of liabilities that could be offset by assets with the same counterparty under master netting or similar arrangements that management elects not to offset on the Consolidated Balance Sheets. |
Derivatives and Hedging Activ59
Derivatives and Hedging Activities (Balance Sheet) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 | |
Derivatives and Hedging Activities | |||
Notional amount | $ 139,462 | $ 138,505 | |
Asset | [1] | 5,078 | 3,508 |
Liability | [2] | 5,684 | 4,160 |
Fair value of investment securities received as collateral | 940 | 323 | |
Fair value of investment securities received as collateral that can be repledged | 670 | 193 | |
Fair value of investment securities received as collateral that were repledged | 19 | 0 | |
GMWB and GMAB embedded derivatives [Member] | |||
Derivatives and Hedging Activities | |||
Asset | 73 | 143 | |
Liability | 1,800 | 994 | |
Derivatives not designated as hedging instruments [Member] | |||
Derivatives and Hedging Activities | |||
Notional amount | 139,462 | 138,505 | |
Derivatives not designated as hedging instruments [Member] | Interest rate contracts [Member] | |||
Derivatives and Hedging Activities | |||
Notional amount | 73,844 | 62,591 | |
Derivatives not designated as hedging instruments [Member] | Equity contracts [Member] | |||
Derivatives and Hedging Activities | |||
Notional amount | 59,441 | 69,009 | |
Derivatives not designated as hedging instruments [Member] | Credit contracts [Member] | |||
Derivatives and Hedging Activities | |||
Notional amount | 1,073 | 600 | |
Derivatives not designated as hedging instruments [Member] | Foreign exchange contracts [Member] | |||
Derivatives and Hedging Activities | |||
Notional amount | 4,659 | 4,155 | |
Derivatives not designated as hedging instruments [Member] | Other contracts [Member] | |||
Derivatives and Hedging Activities | |||
Notional amount | 445 | 2,150 | |
Other assets [Member] | Derivatives not designated as hedging instruments [Member] | |||
Derivatives and Hedging Activities | |||
Asset | [1] | 5,078 | 3,508 |
Other assets [Member] | Derivatives not designated as hedging instruments [Member] | Interest rate contracts [Member] | |||
Derivatives and Hedging Activities | |||
Asset | [1] | 3,593 | 1,882 |
Other assets [Member] | Derivatives not designated as hedging instruments [Member] | Equity contracts [Member] | |||
Derivatives and Hedging Activities | |||
Asset | [1] | 1,413 | 1,569 |
Other assets [Member] | Derivatives not designated as hedging instruments [Member] | Credit contracts [Member] | |||
Derivatives and Hedging Activities | |||
Asset | [1] | 1 | 2 |
Other assets [Member] | Derivatives not designated as hedging instruments [Member] | Foreign exchange contracts [Member] | |||
Derivatives and Hedging Activities | |||
Asset | [1] | 71 | 55 |
Other liabilities [Member] | Derivatives not designated as hedging instruments [Member] | |||
Derivatives and Hedging Activities | |||
Liability | [2] | 3,485 | 2,940 |
Other liabilities [Member] | Derivatives not designated as hedging instruments [Member] | Interest rate contracts [Member] | |||
Derivatives and Hedging Activities | |||
Liability | [2] | 1,603 | 948 |
Other liabilities [Member] | Derivatives not designated as hedging instruments [Member] | Equity contracts [Member] | |||
Derivatives and Hedging Activities | |||
Liability | [2] | 1,846 | 1,975 |
Other liabilities [Member] | Derivatives not designated as hedging instruments [Member] | Foreign exchange contracts [Member] | |||
Derivatives and Hedging Activities | |||
Liability | [2] | 35 | 17 |
Other liabilities [Member] | Derivatives not designated as hedging instruments [Member] | Other contracts [Member] | |||
Derivatives and Hedging Activities | |||
Liability | [2] | 1 | |
Policyholder Account Balances, Future Policy Benefits and Claims [Member] | GMWB and GMAB embedded derivatives [Member] | |||
Derivatives and Hedging Activities | |||
Liability | [2],[3] | 1,756 | 851 |
Policyholder Account Balances, Future Policy Benefits and Claims [Member] | IUL embedded derivatives [Member] | |||
Derivatives and Hedging Activities | |||
Liability | [2] | 438 | 364 |
Policyholder Account Balances, Future Policy Benefits and Claims [Member] | EIA embedded derivatives [Member] | |||
Derivatives and Hedging Activities | |||
Liability | [2] | 5 | 5 |
Policyholder Account Balances, Future Policy Benefits and Claims [Member] | Total embedded derivatives [Member] | |||
Derivatives and Hedging Activities | |||
Liability | [2] | $ 2,199 | $ 1,220 |
[1] | The fair value of freestanding derivative assets is included in Other assets on the Consolidated Balance Sheets. | ||
[2] | The fair value of freestanding derivative liabilities is included in Other liabilities on the Consolidated Balance Sheets. The fair value of GMWB and GMAB, IUL, and EIA embedded derivatives is included in Policyholder account balances, future policy benefits and claims on the Consolidated Balance Sheets. | ||
[3] | The fair value of the GMWB and GMAB embedded derivatives at September 30, 2016 included $1.8 billion of individual contracts in a liability position and $73 million of individual contracts in an asset position. The fair value of the GMWB and GMAB embedded derivatives at December 31, 2015 included $994 million of individual contracts in a liability position and $143 million of individual contracts in an asset position. |
Derivatives and Hedging Activ60
Derivatives and Hedging Activities (Income Statement) (Details) - Derivatives not designated as hedging instruments [Member] - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Interest credited to fixed accounts [Member] | ||||
Impact of derivatives not designated as hedging instruments on the Consolidated Statements of Income | ||||
Amount of gain (loss) on derivatives recognized in income | $ 7 | $ (9) | $ 22 | $ (15) |
Interest credited to fixed accounts [Member] | Equity contracts [Member] | ||||
Impact of derivatives not designated as hedging instruments on the Consolidated Statements of Income | ||||
Amount of gain (loss) on derivatives recognized in income | 12 | (16) | 10 | (17) |
Interest credited to fixed accounts [Member] | IUL embedded derivatives [Member] | ||||
Impact of derivatives not designated as hedging instruments on the Consolidated Statements of Income | ||||
Amount of gain (loss) on derivatives recognized in income | (5) | 6 | 12 | 1 |
Interest credited to fixed accounts [Member] | EIA embedded derivatives [Member] | ||||
Impact of derivatives not designated as hedging instruments on the Consolidated Statements of Income | ||||
Amount of gain (loss) on derivatives recognized in income | 1 | 1 | ||
Benefits, claims, losses and settlement expenses [Member] | ||||
Impact of derivatives not designated as hedging instruments on the Consolidated Statements of Income | ||||
Amount of gain (loss) on derivatives recognized in income | (185) | (25) | (341) | (219) |
Benefits, claims, losses and settlement expenses [Member] | Interest rate contracts [Member] | ||||
Impact of derivatives not designated as hedging instruments on the Consolidated Statements of Income | ||||
Amount of gain (loss) on derivatives recognized in income | (13) | 536 | 1,191 | 360 |
Benefits, claims, losses and settlement expenses [Member] | Equity contracts [Member] | ||||
Impact of derivatives not designated as hedging instruments on the Consolidated Statements of Income | ||||
Amount of gain (loss) on derivatives recognized in income | (357) | 328 | (518) | 69 |
Benefits, claims, losses and settlement expenses [Member] | Credit contracts [Member] | ||||
Impact of derivatives not designated as hedging instruments on the Consolidated Statements of Income | ||||
Amount of gain (loss) on derivatives recognized in income | (3) | (10) | (34) | (5) |
Benefits, claims, losses and settlement expenses [Member] | Foreign exchange contracts [Member] | ||||
Impact of derivatives not designated as hedging instruments on the Consolidated Statements of Income | ||||
Amount of gain (loss) on derivatives recognized in income | (12) | 6 | (66) | (2) |
Benefits, claims, losses and settlement expenses [Member] | Other contracts [Member] | ||||
Impact of derivatives not designated as hedging instruments on the Consolidated Statements of Income | ||||
Amount of gain (loss) on derivatives recognized in income | (9) | (13) | (9) | (13) |
Benefits, claims, losses and settlement expenses [Member] | GMWB and GMAB embedded derivatives [Member] | ||||
Impact of derivatives not designated as hedging instruments on the Consolidated Statements of Income | ||||
Amount of gain (loss) on derivatives recognized in income | $ 209 | $ (872) | $ (905) | $ (628) |
Derivatives and Hedging Activ61
Derivatives and Hedging Activities (Option Pay/Rec) (Details) $ in Millions | Sep. 30, 2016USD ($) | |
Summary of option premiums payable and receivable | ||
Premiums payable | $ 1,740 | |
Premiums receivable | 627 | |
2016 [Member] | ||
Summary of option premiums payable and receivable | ||
Premiums payable | 89 | [1] |
Premiums receivable | 31 | [1] |
2017 [Member] | ||
Summary of option premiums payable and receivable | ||
Premiums payable | 257 | |
Premiums receivable | 76 | |
2018 [Member] | ||
Summary of option premiums payable and receivable | ||
Premiums payable | 214 | |
Premiums receivable | 130 | |
2019 [Member] | ||
Summary of option premiums payable and receivable | ||
Premiums payable | 260 | |
Premiums receivable | 131 | |
2020 [Member] | ||
Summary of option premiums payable and receivable | ||
Premiums payable | 179 | |
Premiums receivable | 57 | |
2021-2026 [Member] | ||
Summary of option premiums payable and receivable | ||
Premiums payable | 741 | |
Premiums receivable | $ 202 | |
[1] | 2016 amounts represent the amounts payable and receivable for the period from October 1, 2016 to December 31, 2016. |
Derivatives and Hedging Activ62
Derivatives and Hedging Activities (Cash Flow Hedges and Credit Risk) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2016 | Dec. 31, 2015 | |
General Cash Flow Hedge Information [Abstract] | ||
Derivatives designated as cash flow hedges | $ 0 | |
Cash flow hedge loss to be reclassified within twelve months | $ 5 | |
Longest period of time over which the entity hedges exposure to the variability in future cash flows | 2 years | |
Derivatives liabilities, credit risk related contingent features | ||
Aggregate fair value of derivative contracts in a net liability position containing such credit contingent instruments | $ 152 | $ 243 |
Aggregate fair value of assets posted as collateral for such instruments | 140 | 243 |
Aggregate fair value of additional assets required to be posted or needed to settle the instruments | $ 12 | $ 0 |
Comprehensive Income (Loss) (De
Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | ||
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, before Tax, Portion Attributable to Parent [Abstract] | |||||
Net unrealized securities gains (losses) arising during the period, pretax | [1] | $ 75 | $ (128) | $ 1,067 | $ (545) |
Reclassification of net securities (gains) losses included in net income, pretax | [2] | (1) | 10 | (7) | (7) |
Impact of deferred acquisition costs, deferred sales inducement costs, unearned revenue, benefit reserves and reinsurance recoverables, pretax | (114) | 78 | (533) | 281 | |
Net unrealized securities gains (losses), pretax | (40) | (40) | 527 | (271) | |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, before Tax, Portion Attributable to Parent [Abstract] | |||||
Reclassification of net derivative losses included in net income, pretax | [3] | 1 | 1 | 4 | 4 |
Net unrealized derivative gains, pretax | 1 | 1 | 4 | 4 | |
Other comprehensive income (loss), pretax | (39) | (39) | 531 | (267) | |
Other Comprehensive Income (Loss), Available-for-sale Securities, Tax, Portion Attributable to Parent [Abstract] | |||||
Net unrealized securities gains (losses) arising during the period, tax | [1] | (25) | 45 | (375) | 191 |
Reclassification of net securities (gains) losses included in net income, tax | [2] | 0 | (4) | 2 | 2 |
Impact of deferred acquisition costs, deferred sales inducement costs, unearned revenue, benefit reserves and reinsurance recoverables, tax | 39 | (27) | 186 | (98) | |
Net unrealized securities gains (losses), tax | 14 | 14 | (187) | 95 | |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Tax, Portion Attributable to Parent [Abstract] | |||||
Reclassification of net derivative losses included in net income, tax | [3] | 0 | 0 | (1) | (1) |
Net unrealized derivatives gains, tax | 0 | 0 | (1) | (1) | |
Other comprehensive income (loss), tax | 14 | 14 | (188) | 94 | |
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax, Portion Attributable to Parent [Abstract] | |||||
Net unrealized securities gains (losses) arising during the period, net of tax | [1] | 50 | (83) | 692 | (354) |
Reclassification of net securities (gains) losses included in net income, net of tax | [2] | (1) | 6 | (5) | (5) |
Impact of deferred acquisition costs, deferred sales inducement costs, unearned revenue, benefit reserves and reinsurance recoverables, net of tax | (75) | 51 | (347) | 183 | |
Net unrealized securities gains (losses), net of tax | (26) | (26) | 340 | (176) | |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax, Portion Attributable to Parent [Abstract] | |||||
Reclassification of net derivative losses included in net income, net of tax | [3] | 1 | 1 | 3 | 3 |
Net unrealized derivatives gains, net of tax | 1 | 1 | 3 | 3 | |
Total other comprehensive income (loss), net of tax | $ (25) | $ (25) | $ 343 | $ (173) | |
[1] | Includes other-than-temporary impairment losses on Available-for-Sale securities related to factors other than credit that were recognized in other comprehensive income during the period. | ||||
[2] | Reclassification amounts are recorded in net realized investment gains. | ||||
[3] | Reclassification amounts are recorded in net investment income. |
Shareholder's Equity Shareholde
Shareholder's Equity Shareholder's Equity (Reclassifications) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance | $ 763 | $ 581 | $ 395 | $ 729 | |
OCI before reclassifications | (25) | (32) | 345 | (171) | |
Amounts reclassified from AOCI | 0 | 7 | (2) | (2) | |
Total OCI | (25) | (25) | 343 | (173) | |
Ending balance | 738 | 556 | 738 | 556 | |
Noncredit related impairments on securities and net unrealized securities gains (losses) on previously impaired securities | (1) | (1) | |||
Net unrealized securities gains [Member] | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance | 769 | 591 | 403 | 741 | |
OCI before reclassifications | (25) | (32) | 345 | (171) | |
Amounts reclassified from AOCI | (1) | 6 | (5) | (5) | |
Total OCI | (26) | (26) | 340 | (176) | |
Ending balance | [1] | 743 | 565 | 743 | 565 |
Noncredit related impairments on securities and net unrealized securities gains (losses) on previously impaired securities | 1 | 1 | |||
Net unrealized derivatives gains [Member] | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance | (6) | (10) | (8) | (12) | |
OCI before reclassifications | 0 | 0 | 0 | 0 | |
Amounts reclassified from AOCI | 1 | 1 | 3 | 3 | |
Total OCI | 1 | 1 | 3 | 3 | |
Ending balance | $ (5) | $ (9) | $ (5) | $ (9) | |
[1] | Includes $1 million and $(1) million of noncredit related impairments on securities and net unrealized securities gains (losses) on previously impaired securities at September 30, 2016 and September 30, 2015, respectively. |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Operating Loss Carryforwards [Line Items] | |||||
Effective tax rate (as a percent) | 1900.00% | 15.20% | 5.80% | 17.20% | |
Valuation allowance | $ 7 | $ 7 | $ 8 | ||
Gross unrecognized tax benefits | 58 | 58 | 95 | ||
Unrecognized tax benefits, net of federal tax benefits that would affect the effective tax rate if recognized | 6 | 6 | 9 | ||
Net increase (decrease) in interest and penalties | 0 | $ 1 | 39 | $ 2 | |
Payable related to accrued interest and penalties | 2 | 2 | $ 41 | ||
Minimum [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Decrease in gross unrecognized tax benefits due to resolution of IRS examinations | 45 | 45 | |||
Maximum [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Decrease in gross unrecognized tax benefits due to resolution of IRS examinations | 55 | 55 | |||
State and local jurisdiction [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
State net operating losses | $ 7 | $ 7 |
Guarantees and Contingencies (D
Guarantees and Contingencies (Details) - Future guaranty fund assessments [Member] - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Commitments and Contingencies | ||
Liability related to guaranty fund assessments | $ 13 | $ 13 |
Related premium tax asset | $ 12 | $ 12 |
Variable Interest Entities Va67
Variable Interest Entities Variable Interest Entities (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2016 | Dec. 31, 2015 | |
Affordable housing partnerships [Member] | River Source Tax Advantaged Investments Inc [Member] | ||
Variable Interest Entity [Line Items] | ||
Carrying value of investments reflected in Other investments | $ 544 | $ 517 |
Obligation to provide financial or other support to VIEs | 0 | |
Other real estate partnerships [Member] | River Source Tax Advantaged Investments Inc [Member] | ||
Variable Interest Entity [Line Items] | ||
Carrying value of investments reflected in Other investments | 10 | |
Obligation to provide financial or other support to VIEs | 0 | |
Variable Interest Entity, Not Primary Beneficiary [Member] | Total fixed maturities [Member] | ||
Variable Interest Entity [Line Items] | ||
Obligation to provide financial or other support to VIEs | $ 0 |