Cover Document
Cover Document - shares | 9 Months Ended | |
Sep. 30, 2018 | Nov. 05, 2018 | |
Document Entity Information | ||
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2018 | |
Entity Registrant Name | RIVERSOURCE LIFE INSURANCE COMPANY | |
Entity Common Stock, Shares Outstanding | 100,000 |
Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Nov. 05, 2018 | |
Document Entity Information | ||
Entity Registrant Name | RIVERSOURCE LIFE INSURANCE COMPANY | |
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, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
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, 2018 | Dec. 31, 2017 |
Investments: | ||
Available-for-Sale: Fixed maturities, at fair value (amortized cost: 2018, $20,928; 2017, $20,764) | $ 21,472 | $ 22,155 |
Mortgage loans, at amortized cost (less allowance for loan losses: 2018 and 2017, $16) | 2,540 | 2,619 |
Policy loans | 854 | 845 |
Other Investments | 848 | 900 |
Total investments | 25,714 | 26,519 |
Cash and cash equivalents | 675 | 1,062 |
Reinsurance recoverables | 3,068 | 2,876 |
Other receivables | 202 | 207 |
Accrued investment income | 214 | 219 |
Deferred acquisition costs | 2,793 | 2,639 |
Other assets | 4,252 | 4,358 |
Separate account assets | 81,688 | 82,560 |
Total assets | 118,606 | 120,440 |
Liabilities: | ||
Policyholder account balances, future policy benefits and claims | 28,476 | 29,178 |
Short-term borrowings | 201 | 200 |
Other liabilities | 4,702 | 4,674 |
Separate account liabilities | 81,688 | 82,560 |
Total liabilities | 115,067 | 116,612 |
Shareholder's equity: | ||
Common stock, $30 par value; 100,000 shares authorized, issued and outstanding | 3 | 3 |
Additional paid-in capital | 2,466 | 2,466 |
Retained earnings | 1,005 | 903 |
Accumulated other comprehensive income, net of tax | 65 | 456 |
Total shareholder's equity | 3,539 | 3,828 |
Total liabilities and shareholder's equity | $ 118,606 | $ 120,440 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Fixed maturities, amortized cost | $ 20,928 | $ 20,764 |
Mortgage loans, allowance for loan losses | $ 16 | $ 16 |
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, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |||
Revenues | ||||||
Premiums | $ 101 | $ 99 | $ 296 | $ 304 | ||
Net investment income | 243 | 261 | 757 | 797 | ||
Policy and contract charges | 576 | 448 | [1] | 1,579 | 1,427 | [1] |
Other revenues | 104 | 99 | [1] | 313 | 296 | [1] |
Net realized investment gains (losses) | 4 | 0 | 14 | 31 | ||
Total revenues | 1,028 | 907 | 2,959 | 2,855 | ||
Benefits and expenses | ||||||
Benefits, claims, losses and settlement expenses | 480 | 236 | 1,134 | 920 | ||
Interest credited to fixed accounts | 178 | 176 | 499 | 509 | ||
Amortization of deferred acquisition costs | 11 | 32 | 133 | 142 | ||
Other insurance and operating expenses | 168 | 176 | 512 | 527 | ||
Total benefits and expenses | 837 | 620 | 2,278 | 2,098 | ||
Pretax income (loss) | 191 | 287 | 681 | 757 | ||
Income tax provision (benefit) | (8) | 34 | 29 | 71 | ||
Net Income | 199 | 253 | 652 | 686 | ||
Supplemental Disclosures: | ||||||
Total other-than-temporary impairment losses on securities | 0 | 0 | 0 | 0 | ||
Portion of loss recognized in other comprehensive income (before taxes) | 0 | 0 | 0 | 0 | ||
Net impairment losses recognized in net realized investment gains (losses) | $ 0 | $ 0 | $ 0 | $ 0 | ||
[1] | Certain prior period amounts have been restated. See Note 1 for more information. |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income | $ 199 | $ 253 | $ 652 | $ 686 |
Other comprehensive income (loss), net of tax: | ||||
Net unrealized gains (losses) on securities | (51) | (7) | (392) | 29 |
Net unrealized gains (losses) on derivatives | 0 | 1 | 1 | 3 |
Other | 0 | 0 | 0 | (1) |
Total other comprehensive income (loss), net of tax | (51) | (6) | (391) | 31 |
Total comprehensive income | $ 148 | $ 247 | $ 261 | $ 717 |
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 (loss) [Member] |
Beginning balance at Dec. 31, 2016 | $ 3,788 | $ 3 | $ 2,466 | $ 862 | $ 457 |
Comprehensive income: | |||||
Net Income | 686 | 686 | |||
Other comprehensive income (loss), net of tax | 31 | 31 | |||
Total comprehensive income | 717 | ||||
Cash dividends to Ameriprise Financial, Inc. | (700) | (700) | |||
Ending balance at Sep. 30, 2017 | 3,805 | 3 | 2,466 | 848 | 488 |
Beginning balance at Dec. 31, 2017 | 3,828 | 3 | 2,466 | 903 | 456 |
Comprehensive income: | |||||
Net Income | 652 | 652 | |||
Other comprehensive income (loss), net of tax | (391) | (391) | |||
Total comprehensive income | 261 | ||||
Cash dividends to Ameriprise Financial, Inc. | (550) | (550) | |||
Ending balance at Sep. 30, 2018 | $ 3,539 | $ 3 | $ 2,466 | $ 1,005 | $ 65 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Statement of Cash Flows [Abstract] | ||
Net Income | $ 652 | $ 686 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation, amortization and accretion, net | 31 | 36 |
Deferred income tax (benefit) expense | (25) | (71) |
Contractholder and policyholder charges, non-cash | (274) | (268) |
Loss from equity method investments | 50 | 44 |
Net realized investment (gains) losses | (14) | (31) |
Change in operating assets and liabilities: | ||
Deferred acquisition costs | (59) | (31) |
Policyholder account balances, future policy benefits and claims, net | (251) | (118) |
Derivatives, net of collateral | 327 | 500 |
Reinsurance recoverables | (168) | (235) |
Other receivables | 8 | 50 |
Accrued investment income | 5 | 16 |
Other, net | 31 | (55) |
Net cash provided by (used in) operating activities | 313 | 523 |
Available-for-Sale securities: | ||
Proceeds from sales | 40 | 209 |
Maturities, sinking fund payments and calls | 2,102 | 1,843 |
Purchases | (2,327) | (1,315) |
Proceeds from sales, maturities and repayments of mortgage loans | 222 | 341 |
Funding of mortgage loans | (143) | (352) |
Proceeds from sales and collections of other investments | 112 | 126 |
Purchase of other investments | (168) | (154) |
Purchase of land, buildings, equipment and software | (6) | (7) |
Change in policy loans, net | (9) | (11) |
Advance on line of credit to Ameriprise Financial, Inc. | (65) | 0 |
Repayment from Ameriprise Financial, Inc. on line of credit | 65 | 0 |
Other, net | 15 | 31 |
Net cash provided by (used in) investing activities | (162) | 711 |
Policyholder account balances: | ||
Deposits and other additions | 1,511 | 1,538 |
Net transfers from (to) separate accounts | (89) | (120) |
Surrenders and other benefits | (1,406) | (1,413) |
Proceeds from line of credit with Ameriprise Financial, Inc. | 10 | 5 |
Payments on line of credit with Ameriprise Financial, Inc. | (10) | (5) |
Cash received for purchased options with deferred premiums | 161 | 43 |
Cash paid for purchased options with deferred premiums | (165) | (171) |
Cash dividends to Ameriprise Financial, Inc. | (550) | (700) |
Net cash provided by (used in) financing activities | (538) | (823) |
Net increase (decrease) in cash and cash equivalents | (387) | 411 |
Cash and cash equivalents at beginning of period | 1,062 | 323 |
Cash and cash equivalents at end of period | 675 | 734 |
Supplemental Disclosures: | ||
Income taxes paid (received), net | 93 | 243 |
Interest paid on borrowings | 3 | 1 |
Non-cash investing activity: | ||
Partnership commitments not yet remitted | $ 1 | $ 9 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2018 | |
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 fair statement of the consolidated financial position and results of operations for the interim periods have been made. Except for the out-of-period correction described below and the prior period adjustments for the retrospective adoption of the new revenue recognition accounting standard, all adjustments made were of a normal recurring nature. In the first quarter of 2017, the Company recorded a $20 million decrease to income tax provision related to an out-of-period correction for a reversal of a tax reserve. 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, 2017 , filed with the Securities and Exchange Commission on February 22, 2018 (“ 2017 10-K”). 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. On January 1, 2018, the Company retrospectively adopted the new accounting standard for revenue recognition. See Note 2 and Note 3 for further information on the new accounting standard and the Company’s revenue from contracts with customers. The impact to the consolidated statements of income for the three months and nine months ended September 30, 2017 was an increase of $4 million and $12 million , respectively, to policy and contract charges, and a decrease of $4 million and $12 million |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Adoption of New Accounting Standards Revenue from Contracts with Customers In May 2014, the Financial Accounting Standards Board (“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. The standard is effective for interim and annual periods beginning after December 15, 2017. The standard may be applied retrospectively for all periods presented or retrospectively with a cumulative-effect adjustment at the date of adoption. The Company adopted the revenue recognition guidance on a retrospective basis on January 1, 2018. The update does not apply to revenue associated with the manufacturing of insurance and annuity products or financial instruments as these revenues are in the scope of other standards. Therefore, the update did not have an impact on these revenues. The Company’s implementation efforts included the identification of revenue within the guidance and the review of the customer contracts to determine the Company’s performance obligation and the associated timing of each performance obligation. The adoption of the standard resulted in the reclassification of certain revenues within total revenues. See Note 3 for new disclosures on revenue from contracts with customers. 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 these financial instruments. The standard is effective for interim and annual periods beginning after December 15, 2017. The Company adopted the standard on January 1, 2018 using a modified retrospective approach. The adoption of the standard did not have a material impact on the Company’s consolidated financial condition or results of operations. Income Taxes - Intra-Entity Transfers of Assets Other Than Inventory In October 2016, the FASB updated the accounting standards related to the recognition of income tax impacts on intra-entity transfers. The update requires entities to recognize the income tax consequences of intra-entity transfers, other than inventory, upon the transfer of the asset. The update requires the selling entity to recognize a current tax expense or benefit and the purchasing entity to recognize a deferred tax asset or liability when the transfer occurs. The standard is effective for interim and annual periods beginning after December 15, 2017. The Company adopted the standard on January 1, 2018. The adoption of the standard did not have an impact on the Company’s consolidated financial condition or results of operations. Future Adoption of New Accounting Standards Financial Services – Insurance – Targeted Improvements to the Accounting for Long-Duration Contracts In August 2018, the FASB updated the accounting standard related to long-duration insurance contracts. The guidance revises key elements of the measurement models and disclosure requirements for long-duration insurance contracts issued by insurers and reinsurers. The guidance establishes a significant new category of benefit features called market risk benefits that protect the contract holder from other-than-nominal capital market risk and expose the insurer to that risk. Insurers will have to measure market risk benefits at fair value. Market risk benefits include variable annuity guaranteed benefits (i.e. guaranteed minimum death, withdrawal, withdrawal for life, accumulation and income benefits). The portion of the change in fair value attributable to a change in the instrument-specific credit risk of market risk benefits in a liability position will be recorded in other comprehensive income (“OCI”). Significant changes also relate to the measurement of the liability for future policy benefits for nonparticipating traditional long-duration insurance contracts and immediate annuities with a life contingent feature include the following: • Insurers will be required to review and update the cash flow assumptions used to measure the liability for future policy benefits rather than using assumptions locked in at contract inception. The review of assumptions to measure the liability for all future policy benefits will be required annually at the same time each year, or more frequently if suggested by experience. The effect of updating assumptions will be measured on a retrospective catch-up basis and presented separate from the ongoing policyholder benefit expense in the statement of operations in the period the update is made. This new unlocking process will be required for the Company’s term and whole life insurance, disability income, long term care insurance and immediate annuities with a life contingent feature . • The discount rate used to measure the liability for future policy benefits will be standardized. The current requirement to use a discount rate reflecting expected investment yields will change to an upper-medium grade (low credit risk) fixed income corporate instrument yield (generally interpreted as an “A” rating) reflecting the duration characteristics of the liability. Entities will be required to update the discount rate at each reporting date with the effect of discount rate changes reflected in OCI. • The current premium deficiency test is being replaced with a net premium ratio cap of 100%. If the net premium ratio (i.e. the ratio of the present value of total expected benefits and related expenses to the present value of total expected premiums) exceeds 100%, insurers are required to recognize a loss in the statement of operations in the period. Contracts from different issue years will no longer be permitted to be grouped to determine contracts in a loss position. In addition, the update requires deferred acquisition costs (“DAC”) and deferred sales inducement costs (“DSIC”) relating to all long-duration contracts and most investment contracts to be amortized on a straight-line basis over the expected life of the contract independent of profit emergence. Under the new guidance, interest will not accrue to the deferred balance and DAC and DSIC will not be subject to an impairment test. The update requires significant additional disclosures, including disaggregated rollforwards of the liability for future policy benefits, policyholder account balances, market risk benefits, DAC and DSIC, as well as qualitative and quantitative information about expected cash flows, estimates and assumptions. The update is effective for interim and annual periods beginning after December 15, 2020. The standard should be applied to the liability for future policy benefits and DAC and DSIC on a modified retrospective basis and applied to market risk benefits on a retrospective basis with the option to apply full retrospective transition if certain criteria are met. Early adoption is permitted. The Company is currently evaluating the impact of the standard on its consolidated financial condition, results of operations and disclosures. Fair Value Measurement – Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement In August 2018, the FASB updated the accounting standards related to disclosures for fair value measurements. The update eliminates the following disclosures: 1) the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, 2) the policy of timing of transfers between levels of the fair value hierarchy, and 3) the valuation processes for Level 3 fair value measurements. The new disclosures include changes in unrealized gains and losses for the period included in OCI for recurring Level 3 fair value measurements of instruments held at the end of the reporting period and the range and weighted average used to develop significant unobservable inputs and how the weighted average was calculated. The new disclosures are required on a prospective basis; all other provisions should be applied retrospectively. The update is effective for interim and annual periods beginning after December 15, 2019. Early adoption is permitted for the entire standard or only the provisions that eliminate or modify disclosure requirements. The Company is currently evaluating the impact of the standard on its disclosures. The update does not have an impact on the Company’s consolidated financial condition or results of operations. Intangibles – Goodwill and Other – Internal-Use Software – Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract In August 2018, the FASB updated the accounting standards related to customer’s accounting for implementation costs incurred in a cloud computing arrangement (“CCA”) that is a service contract. The update requires implementation costs for a CCA to be evaluated for capitalization using the same approach as implementation costs associated with internal-use software. The update also addresses presentation, measurement and impairment of capitalized implementation costs in a CCA that is a service contract. The update requires new disclosures on the nature of hosting arrangements that are service contracts, significant judgements made when applying the guidance and quantitative disclosures, including amounts capitalized, amortized and impaired. The update is effective for interim and annual periods beginning after December 15, 2019, and can be applied either prospectively or retrospectively. Early adoption is permitted. The Company is currently evaluating the impact of the standard on its consolidated financial condition, results of operations and disclosures. Income Statement – Reporting Comprehensive Income – Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income In February 2018, the FASB updated the accounting standards related to the presentation of tax effects stranded in OCI. The update allows a reclassification from accumulated other comprehensive income (“AOCI”) to retained earnings for tax effects stranded in AOCI resulting from the legislation commonly referred to as the Tax Cuts and Jobs Act (“Tax Act”). The update is optional and entities may elect not to reclassify the stranded tax effects. The update is effective for fiscal years beginning after December 15, 2018. Entities may elect to record the impacts either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Act is recognized. Early adoption is permitted in any period. The Company does not plan to reclassify the stranded tax effects in OCI. As such, the update will not have an impact on the Company’s consolidated financial condition and results of operations. Derivatives and Hedging – Targeted Improvements to Accounting for Hedging Activities In August 2017, the FASB updated the accounting standards to amend the hedge accounting recognition and presentation requirements. The objectives of the update are to better align the financial reporting of hedging relationships to the economic results of an entity’s risk management activities and simplify the application of the hedge accounting guidance. The update also adds new disclosures and amends existing disclosure requirements. The standard is effective for interim and annual periods beginning after December 15, 2018, and should be applied on a modified retrospective basis. Early adoption is permitted. The Company is currently evaluating the impact of the standard on its consolidated financial condition and results of operations. Receivables - Nonrefundable Fees and Other Costs - Premium Amortization on Purchased Callable Debt Securities In March 2017, the FASB updated the accounting standards to shorten the amortization period for certain purchased callable debt securities held at a premium. Under current guidance, premiums are generally amortized over the contractual life of the security. The amendments require the premium to be amortized to the earliest call date. The update applies to securities with explicit, non-contingent call features that are callable at fixed prices and on preset dates. The standard is effective for interim and annual periods beginning after December 15, 2018, and should be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. Early adoption is permitted. The update is not expected to have a material impact on the Company’s consolidated financial condition or results of operations. Financial Instruments – Credit Losses – Measurement of Credit Losses on Financial Instruments 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 |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 9 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers [Text Block] | Revenue from Contracts with Customers On January 1, 2018, the Company adopted the new accounting standard for revenue from contracts with customers on a retrospective basis. The following table presents disaggregated revenue from contracts with customers and a reconciliation to total revenues reported on the Consolidated Statements of Income. Revenues related to manufacturing of insurance and annuity products or financial instruments are not in the scope of this standard and are included in the table below under the heading Revenue from other sources. See Note 2 for additional information on the adoption of the new accounting standard. Three Months Ended September 30, Nine Months Ended 2018 2017 2018 2017 (in millions) Policy and contract charges Affiliated $ 43 $ 43 $ 129 $ 124 Unaffiliated 4 4 12 12 Total 47 47 141 136 Other revenues Administrative fees Affiliated 11 10 33 31 Unaffiliated 5 6 17 17 16 16 50 48 Other fees Affiliated 85 82 256 242 Unaffiliated 1 1 3 3 86 83 259 245 Total 102 99 309 293 Total revenue from contracts with customers 149 146 450 429 Revenue from other sources (1) 879 761 2,509 2,426 Total revenues $ 1,028 $ 907 $ 2,959 $ 2,855 (1) Revenues not included in the scope of the revenue from contracts with customers standard. The following discussion describes the nature, timing, and uncertainty of revenues and cash flows arising from the Company’s contracts with customers. Policy and contract charges The Company earns revenue for providing distribution-related services to mutual funds that are available as underlying investments in its variable annuity and variable life insurance products. The performance obligation is satisfied at the time the mutual fund is distributed. Revenue is recognized over the time the mutual fund is held in the variable product and is generally earned based on a fixed rate applied, as a percentage, to the net asset value of the fund. The revenue is not recognized at the time of sale because it is variably constrained due to factors outside the Company’s control, including market volatility and how long the fund(s) remain in the insurance policy or annuity contract. The revenue will not be recognized until it is probable that a significant reversal will not occur. These fees are accrued and collected on a monthly basis. Other revenues Administrative fees The Company earns revenue for providing customer support, contract servicing and administrative services for affiliated and unaffiliated mutual funds. The transfer agent and administration revenue is earned daily based on a fixed rate applied, as a percentage, to assets under management. These performance obligations are considered a series of distinct services that are substantially the same and are satisfied each day over the contract term. These fees are accrued and collected on a monthly basis. Other fees The Company earns revenue for providing affiliated and unaffiliated partners an opportunity to educate the financial advisors of its affiliate, Ameriprise Financial Services, Inc., that sell the Company's products as well as product and marketing personnel to support the offer, sale and servicing of funds within the Company's variable annuity and life products. These payments allow the parties to train and support the advisors, explain the features of their products, and distribute marketing and educational materials. The affiliated revenue is earned based on a rate, updated at least annually, which is applied, as a percentage, to the market value of assets invested. The unaffiliated revenue is earned based on a fixed rate applied, as a percentage, to the market value of assets invested. These performance obligations are considered a series of distinct services that are substantially the same and are satisfied each day over the contract term. These fees are accrued and collected on a monthly basis. Receivables Receivables for revenue from contracts with customers are recognized when the performance obligation is satisfied and the Company has an unconditional right to the revenue. Receivables related to revenues from contracts with customers were $54 million as of both September 30, 2018 and December 31, 2017 |
Variable Interest Entities Vari
Variable Interest Entities Variable Interest Entities | 9 Months Ended |
Sep. 30, 2018 | |
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets and Liabilities, Net [Abstract] | |
Variable Interest Entities [Text Block] | Variable Interest Entities The Company is a limited partner in affordable housing partnerships that qualify for government-sponsored low income housing tax credit programs and partnerships that invest in multi-family residential properties that were originally developed with an affordable housing component. The Company has determined it is not the primary beneficiary and therefore does not consolidate these partnerships. A majority of the limited partnerships are variable interest entities (“VIEs”). The Company’s maximum exposure to loss as a result of its investment in the VIEs is limited to the carrying value. The carrying value is reflected in other investments and was $364 million and $408 million as of September 30, 2018 and December 31, 2017 , respectively. The Company had a $57 million and a $97 million liability recorded as of September 30, 2018 and December 31, 2017 , respectively, related to original purchase commitments not yet remitted to the VIEs. The Company has not provided any additional support and is not contractually obligated to provide additional support to the VIEs beyond the above mentioned funding commitments. 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 Company has no |
Investments
Investments | 9 Months Ended |
Sep. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments [Text Block] | Investments Available-for-Sale securities distributed by type were as follows: Description of Securities September 30, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Noncredit OTTI (1) (in millions) Fixed maturities: Corporate debt securities $ 12,147 $ 658 $ (126 ) $ 12,679 $ — Residential mortgage backed securities 2,959 19 (71 ) 2,907 — Commercial mortgage backed securities 3,748 15 (125 ) 3,638 — State and municipal obligations 1,126 157 (5 ) 1,278 — Asset backed securities 651 25 (5 ) 671 — Foreign government bonds and obligations 296 10 (8 ) 298 — U.S. government and agency obligations 1 — — 1 — Total $ 20,928 $ 884 $ (340 ) $ 21,472 $ — Description of Securities December 31, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Noncredit OTTI (1) (in millions) Fixed maturities: Corporate debt securities $ 12,133 $ 1,125 $ (25 ) $ 13,233 $ — Residential mortgage backed securities 2,979 54 (22 ) 3,011 — Commercial mortgage backed securities 3,554 47 (32 ) 3,569 — State and municipal obligations 1,114 209 (9 ) 1,314 — Asset backed securities 700 30 (2 ) 728 — Foreign government bonds and obligations 283 20 (4 ) 299 — U.S. government and agency obligations 1 — — 1 — Total fixed maturities 20,764 1,485 (94 ) 22,155 — Common stocks 1 — (1 ) — — Total $ 20,765 $ 1,485 $ (95 ) $ 22,155 $ — (1) Represents the amount of other-than-temporary impairment (“OTTI”) losses in 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, 2018 and December 31, 2017 , investment securities with a fair value of $1.8 billion and $1.6 billion , respectively, were pledged to meet contractual obligations under derivative contracts and short-term borrowings, of which $902 million and $711 million , respectively, may be sold, pledged or rehypothecated by the counterparty. As of both September 30, 2018 and December 31, 2017 , fixed maturity securities comprised approximately 84% 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, 2018 and December 31, 2017 , approximately $773 million and $906 million , 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: Ratings September 30, 2018 December 31, 2017 Amortized Cost Fair Value Percent of Total Fair Value Amortized Cost Fair Value Percent of Total Fair Value (in millions, except percentages) AAA $ 6,595 $ 6,427 30 % $ 6,259 $ 6,303 28 % AA 1,002 1,136 5 1,090 1,285 6 A 2,959 3,195 15 3,443 3,902 18 BBB 9,461 9,806 46 8,796 9,465 43 Below investment grade 911 908 4 1,176 1,200 5 Total fixed maturities $ 20,928 $ 21,472 100 % $ 20,764 $ 22,155 100 % As of September 30, 2018 and December 31, 2017 , approximately 34% and 35% , respectively, of the securities rated AAA were GNMA, FNMA and FHLMC mortgage backed securities. The Company had holdings of $456 million in AT&T, Inc., which were greater than 10% of total equity as of September 30, 2018 . There were no other holdings of any other issuer greater than 10% of total equity as of both September 30, 2018 and December 31, 2017 . 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: Description of Securities September 30, 2018 Less than 12 months 12 months or more Total Number of Securities Fair Value Unrealized Losses Number of Securities Fair Value Unrealized Losses Number of Securities Fair Value Unrealized Losses (in millions, except number of securities) Corporate debt securities 271 $ 4,580 $ (91 ) 48 $ 455 $ (35 ) 319 $ 5,035 $ (126 ) Residential mortgage backed securities 85 1,522 (28 ) 44 733 (43 ) 129 2,255 (71 ) Commercial mortgage backed securities 100 1,722 (57 ) 65 1,093 (68 ) 165 2,815 (125 ) State and municipal obligations 27 117 (2 ) 16 112 (3 ) 43 229 (5 ) Asset backed securities 24 295 (3 ) 12 58 (2 ) 36 353 (5 ) Foreign government bonds and obligations 15 53 (3 ) 14 17 (5 ) 29 70 (8 ) Total 522 $ 8,289 $ (184 ) 199 $ 2,468 $ (156 ) 721 $ 10,757 $ (340 ) Description of Securities December 31, 2017 Less than 12 months 12 months or more Total Number of Securities Fair Value Unrealized Losses Number of Securities Fair Value Unrealized Losses Number of Securities Fair Value Unrealized Losses (in millions, except number of securities) Corporate debt securities 82 $ 834 $ (5 ) 39 $ 360 $ (20 ) 121 $ 1,194 $ (25 ) Residential mortgage backed securities 36 546 (4 ) 41 657 (18 ) 77 1,203 (22 ) Commercial mortgage backed securities 56 994 (10 ) 42 663 (22 ) 98 1,657 (32 ) State and municipal obligations 19 35 — 8 138 (9 ) 27 173 (9 ) Asset backed securities 15 116 — 12 76 (2 ) 27 192 (2 ) Foreign government bonds and obligations 3 6 — 15 23 (4 ) 18 29 (4 ) Common stocks — — — 3 1 (1 ) 3 1 (1 ) Total 211 $ 2,531 $ (19 ) 160 $ 1,918 $ (76 ) 371 $ 4,449 $ (95 ) 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 primarily attributable to an increase in interest rates as well as slightly wider 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 OCI: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 (in millions) Beginning balance $ — $ — $ — $ 21 Reductions for securities sold during the period (realized) — — — (21 ) Ending balance $ — $ — $ — $ — 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, 2018 2017 2018 2017 (in millions) Gross realized investment gains $ 4 $ 5 $ 14 $ 38 Gross realized investment losses — (2 ) — (4 ) Total $ 4 $ 3 $ 14 $ 34 See Note 15 for a rollforward of net unrealized investment gains (losses) included in AOCI. Available-for-Sale securities by contractual maturity as of September 30, 2018 were as follows: Amortized Cost Fair Value (in millions) Due within one year $ 1,320 $ 1,337 Due after one year through five years 4,853 4,876 Due after five years through 10 years 3,383 3,358 Due after 10 years 4,014 4,685 13,570 14,256 Residential mortgage backed securities 2,959 2,907 Commercial mortgage backed securities 3,748 3,638 Asset backed securities 651 671 Total $ 20,928 $ 21,472 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 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, 2018 2017 2018 2017 (in millions) Fixed maturities $ 227 $ 237 $ 686 $ 717 Mortgage loans 29 34 88 103 Other investments (7 ) (4 ) 1 (4 ) 249 267 775 816 Less: investment expenses 6 6 18 19 Total $ 243 $ 261 $ 757 $ 797 |
Financing Receivables
Financing Receivables | 9 Months Ended |
Sep. 30, 2018 | |
Receivables [Abstract] | |
Financing Receivables [Text Block] | Financing Receivables The Company’s financing receivables include commercial 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 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, 2018 2017 (in millions) Beginning balance $ 22 $ 25 Charge-offs (2 ) — Ending balance $ 20 $ 25 Individually evaluated for impairment $ — $ 3 Collectively evaluated for impairment 20 22 The recorded investment in financing receivables by impairment method was as follows: September 30, December 31, (in millions) Individually evaluated for impairment $ 14 $ 17 Collectively evaluated for impairment 2,937 3,015 Total $ 2,951 $ 3,032 As of September 30, 2018 and December 31, 2017 , the Company’s recorded investment in financing receivables individually evaluated for impairment for which there was no related allowance for loan losses was $8 million and $17 million , respectively. During the three months ended September 30, 2018 and 2017 , the Company purchased $21 million and $14 million , respectively, of syndicated loans and sold $13 million and $9 million , respectively, of syndicated loans. During the nine months ended September 30, 2018 and 2017 , the Company purchased $109 million and $121 million , respectively, of syndicated loans and sold $43 million and $12 million , respectively, of syndicated loans. Credit Quality Information Nonperforming loans, which are generally loans 90 days or more past due, were nil and $5 million as of September 30, 2018 and December 31, 2017 , 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 of total commercial mortgage loans as of both September 30, 2018 and December 31, 2017 . 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, December 31, September 30, December 31, (in millions) South Atlantic $ 703 $ 735 27 % 28 % Pacific 761 771 30 29 Mountain 228 242 9 9 West North Central 211 223 8 8 East North Central 204 209 8 8 Middle Atlantic 172 179 7 7 West South Central 132 125 5 5 New England 55 67 2 3 East South Central 90 84 4 3 2,556 2,635 100 % 100 % Less: allowance for loan losses 16 16 Total $ 2,540 $ 2,619 Concentrations of credit risk of commercial mortgage loans by property type were as follows: Loans Percentage September 30, December 31, September 30, December 31, (in millions) Retail $ 856 $ 893 33 % 34 % Office 419 470 16 18 Apartments 565 536 22 20 Industrial 424 451 17 17 Mixed use 38 38 2 1 Hotel 43 39 2 2 Other 211 208 8 8 2,556 2,635 100 % 100 % Less: allowance for loan losses 16 16 Total $ 2,540 $ 2,619 Syndicated Loans The recorded investment in syndicated loans as of September 30, 2018 and December 31, 2017 was $394 million and $397 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 as of September 30, 2018 and December 31, 2017 were nil and $5 million , respectively. Troubled Debt Restructurings The recorded investment in restructured loans was not material as of both September 30, 2018 and December 31, 2017 . 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, 2018 and 2017 . There are no |
Deferred Acquisition Costs and
Deferred Acquisition Costs and Deferred Sales Inducement Costs | 9 Months Ended |
Sep. 30, 2018 | |
Deferred Charges, Insurers [Abstract] | |
Deferred Acquisition Costs and Deferred Sales Inducement Costs | Deferred Acquisition Costs and Deferred Sales Inducement Costs In the third quarter of the year, management updated market-related inputs and implemented model changes related to the living benefit valuation. In addition, management conducted its annual review of life insurance and annuity valuation assumptions relative to current experience and management expectations including modeling changes. These aforementioned changes are collectively referred to as unlocking. The impact of unlocking to DAC in the third quarter of 2018 primarily reflected updated mortality assumptions on universal life (“UL”) and variable universal life (“VUL”) insurance products and lower surrender rate assumptions on variable annuities, partially offset by an unfavorable impact from updates to assumptions on utilization of guaranteed withdrawal benefits. The impact of unlocking to DAC in the third quarter of 2017 primarily reflected improved persistency and mortality on UL and VUL insurance products and a correction related to a variable annuity model assumption partially offset by updates to market-related inputs to the living benefit valuation. The balances of and changes in DAC were as follows: 2018 2017 (in millions) Balance at January 1 $ 2,639 $ 2,611 Capitalization of acquisition costs 192 173 Amortization, excluding the impact of valuation assumptions review (166 ) (154 ) Amortization, impact of valuation assumptions review 33 12 Impact of change in net unrealized (gains) losses on securities 95 (18 ) Balance at September 30 $ 2,793 $ 2,624 The balances of and changes in DSIC , which is included in other assets, were as follows: 2018 2017 (in millions) Balance at January 1 $ 273 $ 301 Capitalization of sales inducement costs 2 3 Amortization, excluding the impact of valuation assumptions review (26 ) (27 ) Amortization, impact of valuation assumptions review — (1 ) Impact of change in net unrealized (gains) losses on securities 16 1 Balance at September 30 $ 265 $ 277 |
Policyholder Account Balances,
Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities | 9 Months Ended |
Sep. 30, 2018 | |
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, (in millions) Policyholder account balances Fixed annuities (1) $ 9,499 $ 9,934 Variable annuity fixed sub-accounts 5,127 5,166 VUL/UL insurance 3,057 3,047 Indexed universal life (“IUL”) insurance 1,649 1,384 Other life insurance 689 720 Total policyholder account balances 20,021 20,251 Future policy benefits Variable annuity guaranteed minimum withdrawal benefits (“GMWB”) (125 ) (2) 463 Variable annuity guaranteed minimum accumulation benefits (“GMAB”) (83 ) (3) (80 ) (3) Other annuity liabilities 26 78 Fixed annuity life contingent liabilities 1,464 1,484 Life and disability income insurance 1,219 1,221 Long term care insurance 4,997 4,896 VUL/UL and other life insurance additional liabilities 807 688 Total future policy benefits 8,305 8,750 Policy claims and other policyholders’ funds 150 177 Total policyholder account balances, future policy benefits and claims $ 28,476 $ 29,178 (1) Includes fixed deferred annuities, non-life contingent fixed payout annuities and indexed annuity host contracts. (2) Includes the fair value of GMWB embedded derivatives that was a net asset as of September 30, 2018 reported as a contra liability. (3) Includes the fair value of GMAB embedded derivatives that was a net asset as of both September 30, 2018 and December 31, 2017 reported as a contra liability. Separate account liabilities consisted of the following: September 30, December 31, (in millions) Variable annuity $ 74,317 $ 75,174 VUL insurance 7,338 7,352 Other insurance 33 34 Total $ 81,688 $ 82,560 |
Variable Annuity and Insurance
Variable Annuity and Insurance Guarantees | 9 Months Ended |
Sep. 30, 2018 | |
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, 2018 December 31, 2017 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 $ 61,379 $ 59,441 $ 12 67 $ 61,418 $ 59,461 $ 9 66 Five/six-year reset 8,504 5,781 11 66 8,870 6,149 12 66 One-year ratchet 6,215 5,864 19 69 6,548 6,187 11 69 Five-year ratchet 1,471 1,416 1 65 1,563 1,506 1 65 Other 1,126 1,107 63 72 1,099 1,075 50 72 Total — GMDB $ 78,695 $ 73,609 $ 106 67 $ 79,498 $ 74,378 $ 83 66 GGU death benefit $ 1,105 $ 1,055 $ 129 70 $ 1,118 $ 1,067 $ 133 70 GMIB $ 208 $ 192 $ 7 69 $ 233 $ 216 $ 7 69 GMWB: GMWB $ 2,252 $ 2,245 $ 1 72 $ 2,508 $ 2,500 $ 1 71 GMWB for life 44,871 44,776 217 68 44,375 44,259 129 67 Total — GMWB $ 47,123 $ 47,021 $ 218 68 $ 46,883 $ 46,759 $ 130 67 GMAB $ 2,762 $ 2,758 $ — 59 $ 3,086 $ 3,083 $ — 59 (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 is defined as the current guaranteed benefit amount in excess of the current contract value. The net amount at risk for GMIB is defined as the greater of the present value of the minimum guaranteed annuity payments less the current contract value or zero. The net amount at risk for GMWB is defined as the greater of the present value of the minimum guaranteed withdrawal payments less the current contract value or zero. The following table provides information related to insurance guarantees for which the Company has established additional liabilities: September 30, 2018 December 31, 2017 Net Amount at Risk Weighted Average Attained Age Net Amount at Risk Weighted Average Attained Age (in millions, except age) UL secondary guarantees $ 6,499 66 $ 6,460 65 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, 2017 $ 16 $ 8 $ 1,017 $ (24 ) $ 434 Incurred claims 3 — (478 ) (49 ) 59 Paid claims (3 ) (1 ) — — (22 ) Balance at September 30, 2017 $ 16 $ 7 $ 539 $ (73 ) $ 471 Balance at January 1, 2018 $ 17 $ 6 $ 463 $ (80 ) $ 489 Incurred claims 5 — (588 ) (3 ) 171 Paid claims (4 ) — — — (19 ) Balance at September 30, 2018 $ 18 $ 6 $ (125 ) $ (83 ) $ 641 (1) The incurred claims for GMWB and GMAB include the change in the fair value of the liabilities (contra liabilities) less paid claims. 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, 2017 (in millions) Mutual funds: Equity $ 44,968 $ 46,038 Bond 22,846 23,529 Other 6,059 5,109 Total mutual funds $ 73,873 $ 74,676 |
Short-term Borrowings
Short-term Borrowings | 9 Months Ended |
Sep. 30, 2018 | |
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, 2018 and December 31, 2017 , the Company has pledged $53 million and $43 million , respectively, of agency residential mortgage backed securities and nil and $8 million , respectively, of commercial mortgage backed securities. The amount of the Company’s liability including accrued interest as of both September 30, 2018 and December 31, 2017 was $50 million . The remaining maturity of outstanding repurchase agreements was less than three months as of September 30, 2018 and less than one month as of December 31, 2017 . The weighted average annualized interest rate on repurchase agreements held as of September 30, 2018 and December 31, 2017 was 2.3% and 1.4% , 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 $788 million and $750 million as of September 30, 2018 and December 31, 2017 , respectively. The amount of the Company’s liability including accrued interest as of September 30, 2018 and December 31, 2017 was $151 million and $150 million , respectively. The remaining maturity of outstanding FHLB advances was less than three months as of September 30, 2018 and less than four months as of December 31, 2017 . The weighted average annualized interest rate on outstanding borrowings as of September 30, 2018 and December 31, 2017 was 2.3% and 1.5% |
Fair Values of Assets and Liabi
Fair Values of Assets and Liabilities | 9 Months Ended |
Sep. 30, 2018 | |
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, 2018 Level 1 Level 2 Level 3 Total (in millions) Assets Available-for-Sale securities: Fixed maturities: Corporate debt securities $ — $ 11,729 $ 950 $ 12,679 Residential mortgage backed securities — 2,842 65 2,907 Commercial mortgage backed securities — 3,638 — 3,638 State and municipal obligations — 1,278 — 1,278 Asset backed securities — 671 — 671 Foreign government bonds and obligations — 298 — 298 U.S. government and agency obligations 1 — — 1 Total Available-for-Sale securities: Fixed maturities 1 20,456 1,015 21,472 Equity securities 1 — — 1 Cash equivalents — 635 — 635 Other assets: Interest rate derivative contracts — 609 — 609 Equity derivative contracts 87 2,544 — 2,631 Foreign exchange derivative contracts — 43 — 43 Credit derivative contracts — 7 — 7 Total other assets 87 3,203 — 3,290 Separate account assets at net asset value (“NAV”) 81,688 (1) Total assets at fair value $ 89 $ 24,294 $ 1,015 $ 107,086 Liabilities Policyholder account balances, future policy benefits and claims: Indexed annuity embedded derivatives $ — $ 4 $ 11 $ 15 IUL embedded derivatives — — 684 684 GMWB and GMAB embedded derivatives — — (686 ) (686 ) (2) Total policyholder account balances, future policy benefits and claims — 4 9 13 (3) Other liabilities: Interest rate derivative contracts 1 601 — 602 Equity derivative contracts 13 3,005 — 3,018 Foreign exchange derivative contracts — 27 — 27 Total other liabilities 14 3,633 — 3,647 Total liabilities at fair value $ 14 $ 3,637 $ 9 $ 3,660 December 31, 2017 Level 1 Level 2 Level 3 Total (in millions) Assets Available-for-Sale securities: Fixed maturities: Corporate debt securities $ — $ 12,161 $ 1,072 $ 13,233 Residential mortgage backed securities — 2,924 87 3,011 Commercial mortgage backed securities — 3,569 — 3,569 State and municipal obligations — 1,314 — 1,314 Asset backed securities — 728 — 728 Foreign government bonds and obligations — 299 — 299 U.S. government and agency obligations 1 — — 1 Total Available-for-Sale securities: Fixed maturities 1 20,995 1,159 22,155 Cash equivalents — 1,030 — 1,030 Other assets: Interest rate derivative contracts — 1,081 — 1,081 Equity derivative contracts 62 2,305 — 2,367 Foreign exchange derivative contracts 1 34 — 35 Total other assets 63 3,420 — 3,483 Separate account assets at NAV 82,560 (1) Total assets at fair value $ 64 $ 25,445 $ 1,159 $ 109,228 Liabilities Policyholder account balances, future policy benefits and claims: Indexed annuity embedded derivatives $ — $ 5 $ — $ 5 IUL embedded derivatives — — 601 601 GMWB and GMAB embedded derivatives — — (49 ) (49 ) (4) Total policyholder account balances, future policy benefits and claims — 5 552 557 (5) Other liabilities: Interest rate derivative contracts 1 414 — 415 Equity derivative contracts 5 2,666 — 2,671 Foreign exchange derivative contracts — 23 — 23 Credit derivative contracts — 2 — 2 Total other liabilities 6 3,105 — 3,111 Total liabilities at fair value $ 6 $ 3,110 $ 552 $ 3,668 (1) Amounts are comprised of certain financial instruments 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. (2) The fair value of the GMWB and GMAB embedded derivatives included $178 million of individual contracts in a liability position and $864 million of individual contracts in an asset position as of September 30, 2018 . (3) The Company’s adjustment for nonperformance risk resulted in a $(370) million cumulative increase (decrease) to the embedded derivatives as of September 30, 2018 . (4) The fair value of the GMWB and GMAB embedded derivatives included $443 million of individual contracts in a liability position and $492 million of individual contracts in an asset position as of December 31, 2017 . (5) The Company’s adjustment for nonperformance risk resulted in a $(399) million cumulative increase (decrease) to the embedded derivatives as of December 31, 2017 . 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, 2018 $ 998 $ 69 $ 12 $ 10 $ 1,089 $ 2 Total gains (losses) included in: Net income — — — — — (2 ) (1) Other comprehensive income (2 ) — — — (2 ) — Settlements (46 ) (1 ) — — (47 ) — Transfers out Level 3 — (3 ) (12 ) (10 ) (25 ) — Balance, September 30, 2018 $ 950 $ 65 $ — $ — $ 1,015 $ — Changes in unrealized gains (losses) relating to assets held at September 30, 2018 $ — $ — $ — $ — $ — $ (2 ) (1) Policyholder Account Balances, Future Policy Benefits and Claims Indexed Annuity Embedded Derivatives IUL Embedded Derivatives GMWB and GMAB Embedded Derivatives Total (in millions) Balance, July 1, 2018 $ 8 $ 620 $ (425 ) $ 203 Total (gains) losses included in: Net income — 55 (2) (344 ) (1) (289 ) Issues 3 24 90 117 Settlements — (15 ) (7 ) (22 ) Balance, September 30, 2018 $ 11 $ 684 $ (686 ) $ 9 Changes in unrealized (gains) losses relating to liabilities held at September 30, 2018 $ — $ 55 (2) $ (347 ) (1) $ (292 ) 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, July 1, 2017 $ 1,190 $ 89 $ — $ 11 $ 1,290 $ — Total gains (losses) included in: Net income 1 — — — 1 (3) — Other comprehensive income (1 ) 1 — — — — Purchases 38 — 35 — 73 — Settlements (82 ) (1 ) — — (83 ) — Transfers into Level 3 — — — — — 1 Transfers out of Level 3 — — — (11 ) (11 ) — Balance, September 30, 2017 $ 1,146 $ 89 $ 35 $ — $ 1,270 $ 1 Changes in unrealized gains (losses) relating to assets held at September 30, 2017 $ 1 $ — $ — $ — $ 1 (3) $ — Policyholder Account Balances, Future Policy Benefits and Claims IUL Embedded Derivatives GMWB and GMAB Embedded Derivatives Total (in millions) Balance, July 1, 2017 $ 527 $ 272 $ 799 Total (gains) losses included in: Net income 35 (2) (309 ) (1) (274 ) Issues 26 84 110 Settlements (11 ) (2 ) (13 ) Balance, September 30, 2017 $ 577 $ 45 $ 622 Changes in unrealized (gains) losses relating to liabilities held at $ 35 (2) $ (307 ) (1) $ (272 ) 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, 2018 $ 1,072 $ 87 $ — $ — $ 1,159 $ — Total gains (losses) included in: Net income (1 ) — — — (1 ) (3) (3 ) (1) Other comprehensive income (28 ) 1 — — (27 ) — Purchases 15 — 12 10 37 3 Settlements (108 ) (5 ) — — (113 ) — Transfers out of Level 3 — (18 ) (12 ) (10 ) (40 ) — Balance, September 30, 2018 $ 950 $ 65 $ — $ — $ 1,015 $ — Changes in unrealized gains (losses) relating to assets held at September 30, 2018 $ (1 ) $ — $ — $ — $ (1 ) (3) $ (3 ) (1) Policyholder Account Balances, Future Policy Benefits and Claims Indexed Annuity Embedded Derivatives IUL Embedded Derivatives GMWB and GMAB Embedded Derivatives Total (in millions) Balance, January 1, 2018 $ — $ 601 $ (49 ) $ 552 Total (gains) losses included in: Net income — 56 (2) (875 ) (1) (819 ) Issues 11 65 257 333 Settlements — (38 ) (19 ) (57 ) Balance, September 30, 2018 $ 11 $ 684 $ (686 ) $ 9 Changes in unrealized (gains) losses relating to liabilities held at September 30, 2018 $ — $ 56 (2) $ (868 ) (1) $ (812 ) 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, 2017 $ 1,157 $ 115 $ — $ 13 $ 1,285 $ — Total gains (losses) included in: Net income 1 — — — 1 (3) — Other comprehensive income 1 1 — — 2 — Purchases 96 67 35 49 247 — Settlements (109 ) (5 ) — (13 ) (127 ) — Transfers into Level 3 — — — 11 11 5 Transfers out of Level 3 — (89 ) — (60 ) (149 ) (4 ) Balance, September 30, 2017 $ 1,146 $ 89 $ 35 $ — $ 1,270 $ 1 Changes in unrealized gains (losses) relating to assets held at September 30, 2017 $ 1 $ — $ — $ — $ 1 (3) $ — Policyholder Account Balances, Future Policy Benefits and Claims IUL Embedded Derivatives GMWB and GMAB Embedded Derivatives Total (in millions) Balance, January 1, 2017 $ 464 $ 614 $ 1,078 Total (gains) losses included in: Net income 75 (2) (798 ) (1) (723 ) Issues 70 238 308 Settlements (32 ) (9 ) (41 ) Balance, September 30, 2017 $ 577 $ 45 $ 622 Changes in unrealized (gains) losses relating to liabilities held at $ 75 (2) $ (771 ) (1) $ (696 ) (1) Included in benefits, claims, losses and settlement expenses in the Consolidated Statements of Income. (2) Included in interest credited to fixed accounts in the Consolidated Statements of Income. (3) Included in net investment income in the Consolidated Statements of Income. The increase (decrease) to pretax income of the Company’s adjustment for nonperformance risk on the fair value of its embedded derivatives was $(58) million and $(37) million , net of DAC, DSIC, unearned revenue amortization and the reinsurance accrual for the three months ended September 30, 2018 and 2017 , respectively. The increase (decrease) to pretax income of the Company’s adjustment for nonperformance risk on the fair value of its embedded derivatives was $(10) million and $(91) million , net of DAC, DSIC, unearned revenue amortization and the reinsurance accrual for the nine months ended September 30, 2018 and 2017 , 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, 2018 Fair Value Valuation Technique Unobservable Input Range Weighted Average (in millions) Corporate debt securities (private placements) $ 949 Discounted cash flow Yield/spread to U.S. Treasuries 0.7 % - 2.4% 1.2 % IUL embedded derivatives $ 684 Discounted cash flow Nonperformance risk (1) 83 bps Indexed annuity embedded derivatives $ 11 Discounted cash flow Surrender rate 0.0 % - 50.0% Nonperformance risk (1) 83 bps GMWB and GMAB embedded derivatives $ (686 ) Discounted cash flow Utilization of guaranteed withdrawals (2) 0.0 % - 36.0% Surrender rate 0.1 % - 73.4% Market volatility (3) 3.7 % - 15.5% Nonperformance risk (1) 83 bps December 31, 2017 Fair Value Valuation Technique Unobservable Input Range Weighted Average (in millions) Corporate debt securities (private placements) $ 1,070 Discounted cash flow Yield/spread to U.S. Treasuries 0.7 % - 2.3% 1.1 % IUL embedded derivatives $ 601 Discounted cash flow Nonperformance risk (1) 71 bps GMWB and GMAB embedded derivatives $ (49 ) Discounted cash flow Utilization of guaranteed withdrawals (2) 0.0 % - 42.0% Surrender rate 0.1 % - 74.7% Market volatility (3) 3.7 % - 16.1% Nonperformance risk (1) 71 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 nonperformance risk and surrender rate used in the fair value measurement of the indexed annuity embedded derivatives in isolation would result in a significantly lower (higher) liability value. 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 or remaining maturities at the time of purchase of 90 days or less. The Company’s 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 and Equity 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 includes U.S. Treasuries and equity securities. Level 2 securities primarily include corporate bonds, residential mortgage backed securities, commercial mortgage backed securities, state and municipal obligations, asset backed securities 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 and commercial mortgage backed securities. The fair value of corporate bonds, non-agency residential mortgage backed securities and commercial mortgage 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 derivatives that contain settlement provisions linked to both equity returns and interest rates. See Note 14 for further information on the macro hedge program. The counterparties’ nonperformance risk associated with uncollateralized derivative assets was immaterial as of both September 30, 2018 and December 31, 2017 . See Note 13 and Note 14 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 indexed annuity and IUL products. Significant inputs to the equity indexed annuity calculation include observable interest rates, volatilities and equity index levels and, therefore, are classified as Level 2. The fair value of fixed index annuity and 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 fixed index annuity and 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. The Company’s nonperformance risk associated with uncollateralized derivative liabilities was immaterial as of both September 30, 2018 and December 31, 2017 . See Note 13 and Note 14 for further information on the credit risk of derivative instruments and related collateral. Fair Value on a Nonrecurring Basis The Company assesses its investment in affordable housing partnerships for other-than-temporary impairment. The investments that are determined to be other-than-temporarily impaired are written down to their fair value. The Company uses a discounted cash flow model to measure the fair value of these investments. Inputs to the discounted cash flow model are estimates of future net operating losses and tax credits available to the Company and discount rates based on market condition and the financial strength of the syndicator (general partner). The balance of affordable housing partnerships measured at fair value on a nonrecurring basis was $132 million and $166 million as of September 30, 2018 and December 31, 2017 , respectively, and is classified as Level 3 in the fair value hierarchy. Asset and Liabilities Not Reported at Fair Value The following tables provide the carrying value and the estimated fair value of financial instruments that are not reported at fair value: September 30, 2018 Carrying Value Fair Value Level 1 Level 2 Level 3 Total (in millions) Financial Assets Mortgage loans, net $ 2,540 $ — $ — $ 2,479 $ 2,479 Policy loans 854 — — 805 805 Other investments 407 — 384 25 409 Financial Liabilities Policyholder account balances, future policy benefits and claims $ 9,786 $ — $ — $ 9,846 $ 9,846 Short-term borrowings 201 — 201 — 201 Other liabilities 75 — — 72 72 Separate account liabilities at NAV 371 371 (1) December 31, 2017 Carrying Value Fair Value Level 1 Level 2 Level 3 Total (in millions) Financial Assets Mortgage loans, net $ 2,619 $ — $ — $ 2,616 $ 2,616 Policy loans 845 — — 801 801 Other investments 408 — 373 36 409 Financial Liabilities Policyholder account balances, future policy benefits and claims $ 10,246 $ — $ — $ 10,755 $ 10,755 Short-term borrowings 200 — 200 — 200 Other liabilities 123 — — 119 119 Separate account liabilities at NAV 369 369 (1) (1) Amounts are comprised of certain financial instruments 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 6 for additional information on mortgage loans and policy loans. Other investments include syndicated loans and the Company’s membership in the FHLB. See Note 6 for additional information on syndicated loans. |
Regulatory Requirements
Regulatory Requirements | 9 Months Ended |
Sep. 30, 2018 | |
Insurance [Abstract] | |
Regulatory Requirements [Text Block] | Insurance companies are required to prepare statutory financial statements in accordance with the accounting practices prescribed or permitted by the insurance departments of their respective states of domicile. RiverSource Life Insurance Company received approval from the Minnesota Department of Commerce to apply a permitted statutory accounting practice, effective July 1, 2017 through June 30, 2019, for certain derivative instruments used to economically hedge the interest rate exposure of certain variable annuity products that do not qualify for statutory hedge accounting. The permitted practice is intended to mitigate the impact to statutory surplus from the misalignment between variable annuity statutory reserves, which are not carried at fair value, and the fair value of derivatives used to economically hedge the interest rate exposure of non-life contingent living benefit guarantees. As of September 30, 2018 and December 31, 2017 , application of this permitted practice resulted in an increase (decrease) to RiverSource Life Insurance Company’s statutory surplus of approximately $377 million and $(3) million |
Offsetting Assets and Liabiliti
Offsetting Assets and Liabilities | 9 Months Ended |
Sep. 30, 2018 | |
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 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, 2018 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 $ 3,263 $ — $ 3,263 $ (2,850 ) $ (396 ) $ (4 ) $ 13 OTC cleared 10 — 10 (9 ) — — 1 Exchange-traded 17 — 17 (1 ) — — 16 Total derivatives $ 3,290 $ — $ 3,290 $ (2,860 ) $ (396 ) $ (4 ) $ 30 December 31, 2017 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 $ 3,440 $ — $ 3,440 $ (2,599 ) $ (736 ) $ (88 ) $ 17 OTC cleared 21 — 21 (15 ) — — 6 Exchange-traded 22 — 22 (1 ) — — 21 Total derivatives $ 3,483 $ — $ 3,483 $ (2,615 ) $ (736 ) $ (88 ) $ 44 (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, 2018 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 $ 3,636 $ — $ 3,636 $ (2,850 ) $ (44 ) $ (742 ) $ — OTC cleared 9 — 9 (9 ) — — — Exchange-traded 2 — 2 (1 ) — — 1 Total derivatives 3,647 — 3,647 (2,860 ) (44 ) (742 ) 1 Repurchase agreements 51 — 51 — — (51 ) — Total $ 3,698 $ — $ 3,698 $ (2,860 ) $ (44 ) $ (793 ) $ 1 December 31, 2017 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 $ 3,095 $ — $ 3,095 $ (2,599 ) $ (1 ) $ (492 ) $ 3 OTC cleared 15 — 15 (15 ) — — — Exchange-traded 1 — 1 (1 ) — — — Total derivatives 3,111 — 3,111 (2,615 ) (1 ) (492 ) 3 Repurchase agreements 50 — 50 — — (50 ) — Total $ 3,161 $ — $ 3,161 $ (2,615 ) $ (1 ) $ (542 ) $ 3 (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 amount of assets or liabilities presented 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, it may be required to post additional collateral. |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 9 Months Ended |
Sep. 30, 2018 | |
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 13 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, 2018 December 31, 2017 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 $ 58,424 $ 609 $ 602 $ 64,790 $ 1,081 $ 415 Equity contracts 53,666 2,631 3,018 56,649 2,367 2,671 Credit contracts 859 7 — 715 — 2 Foreign exchange contracts 4,141 43 27 3,996 35 23 Other contracts 1,349 — — 450 — — Total non-designated hedges 118,439 3,290 3,647 126,600 3,483 3,111 Embedded derivatives GMWB and GMAB (3) N/A — (686 ) N/A — (49 ) IUL N/A — 684 N/A — 601 Indexed annuities N/A — 15 N/A — 5 Total embedded derivatives N/A — 13 N/A — 557 Total derivatives $ 118,439 $ 3,290 $ 3,660 $ 126,600 $ 3,483 $ 3,668 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 indexed annuity 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 as of September 30, 2018 included $178 million of individual contracts in a liability position and $864 million of individual contracts in an asset position. The fair value of the GMWB and GMAB embedded derivatives as of December 31, 2017 included $443 million of individual contracts in a liability position and $492 million of individual contracts in an asset position. See Note 11 for additional information regarding the Company’s fair value measurement of derivative instruments. As of September 30, 2018 and December 31, 2017 , investment securities with a fair value of $5 million and $89 million , respectively, were received as collateral to meet contractual obligations under derivative contracts, of which $5 million and $89 million , respectively, may be sold, pledged or rehypothecated by the Company. As of both September 30, 2018 and December 31, 2017 , the Company had sold, pledged, or rehypothecated nil of these securities. In addition, as of both September 30, 2018 and December 31, 2017 , 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, including embedded derivatives, on the Consolidated Statements of Income: Interest Credited to Fixed Accounts Benefits, Claims, Losses and Settlement Expenses (in millions) Three Months Ended September 30, 2018 Interest rate contracts $ — $ (206 ) Equity contracts 34 (210 ) Credit contracts — 4 Foreign exchange contracts — — Other contracts — (2 ) GMWB and GMAB embedded derivatives — 261 IUL embedded derivatives (40 ) — Total gain (loss) $ (6 ) $ (153 ) Nine Months Ended September 30, 2018 Interest rate contracts $ — $ (740 ) Equity contracts 37 (308 ) Credit contracts — 22 Foreign exchange contracts — (1 ) Other contracts — (4 ) GMWB and GMAB embedded derivatives — 637 IUL embedded derivatives (18 ) — Total gain (loss) $ 19 $ (394 ) Interest Credited to Fixed Accounts Benefits, Claims, Losses and Settlement Expenses (in millions) Three Months Ended September 30, 2017 Interest rate contracts $ — $ 15 Equity contracts 18 (241 ) Credit contracts — (3 ) Foreign exchange contracts — 1 Other contracts — (2 ) GMWB and GMAB embedded derivatives — 227 IUL embedded derivatives (24 ) — Total gain (loss) $ (6 ) $ (3 ) Nine Months Ended September 30, 2017 Interest rate contracts $ — $ 63 Equity contracts 50 (859 ) Credit contracts — (22 ) Foreign exchange contracts — (27 ) Other contracts — (2 ) GMWB and GMAB embedded derivatives — 569 IUL embedded derivatives (43 ) — Total gain (loss) $ 7 $ (278 ) 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 using options (equity index, interest rate swaptions, etc.), swaps (interest rate, total return, etc.) and futures. The deferred premium associated with certain of the above options and swaptions is paid or received semi-annually over the life of the contract or at maturity. The following is a summary of the payments the Company is scheduled to make and receive for these options and swaptions as of September 30, 2018 : Premiums Payable Premiums Receivable (in millions) 2018 (1) $ 51 $ 31 2019 274 169 2020 197 130 2021 168 118 2022 206 198 2023-2026 494 59 Total $ 1,390 $ 705 (1) 2018 amounts represent the amounts payable and receivable for the period from October 1, 2018 to December 31, 2018 . Actual timing and payment amounts may differ due to future settlements, modifications or exercises of the contracts 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 may use a combination of futures, options, swaps and swaptions. Certain of the macro hedge derivatives contain settlement provisions linked to both equity returns and interest rates. The Company’s macro hedge derivatives that contain settlement provisions linked to both equity returns and interest rates are shown in Other contracts in the tables above. Indexed annuity 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 indexed annuity and IUL products will positively or negatively impact earnings over the life of these products. The equity component of indexed annuity 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 hed ging 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, 2018 , the Company held no derivatives that were designated as cash flow hedges. As of September 30, 2018 , the Company expects to reclassify nil of deferred losses 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, 2018 and 2017 , 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, 2018 and 2017 , amounts recognized in earnings on derivative transactions that were ineffective were not material. See Note 15 for a summary of net unrealized gains (losses) 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 less than one year 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 and collateral arrangements whenever practical. See Note 13 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. As of September 30, 2018 and December 31, 2017 , the aggregate fair value of derivative contracts in a net liability position containing such credit contingent provisions was $409 million and $299 million , respectively. The aggregate fair value of assets posted as collateral for such instruments as of September 30, 2018 and December 31, 2017 was $409 million and $296 million , respectively. If the credit contingent provisions of derivative contracts in a net liability position as of September 30, 2018 and December 31, 2017 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 nil and $3 million |
Shareholder's Equity
Shareholder's Equity | 9 Months Ended |
Sep. 30, 2018 | |
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, 2018 2017 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) $ (89 ) $ 19 $ (70 ) $ 52 $ (18 ) $ 34 Reclassification of net securities (gains) losses included in net income (2) (4 ) 1 (3 ) (3 ) 1 (2 ) Impact of deferred acquisition costs, deferred sales inducement costs, unearned revenue, benefit reserves and reinsurance recoverables 28 (6 ) 22 (61 ) 22 (39 ) Net unrealized securities gains (losses) (65 ) 14 (51 ) (12 ) 5 (7 ) Net unrealized derivatives gains (losses): Reclassification of net derivative (gains) losses included in net income (3) — — — 1 — 1 Net unrealized derivatives gains (losses) — — — 1 — 1 Total other comprehensive income (loss) $ (65 ) $ 14 $ (51 ) $ (11 ) $ 5 $ (6 ) Nine Months Ended September 30, 2018 2017 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) $ (832 ) $ 177 $ (655 ) $ 245 $ (85 ) $ 160 Reclassification of net securities (gains) losses included in net income (2) (14 ) 3 (11 ) (34 ) 12 (22 ) Impact of deferred acquisition costs, deferred sales inducement costs, unearned revenue, benefit reserves and reinsurance recoverables 347 (73 ) 274 (168 ) 59 (109 ) Net unrealized securities gains (losses) (499 ) 107 (392 ) 43 (14 ) 29 Net unrealized derivatives gains (losses): Reclassification of net derivative (gains) losses included in net income (3) 1 — 1 4 (1 ) 3 Net unrealized derivatives gains (losses) 1 — 1 4 (1 ) 3 Other — — — (1 ) — (1 ) Total other comprehensive income (loss) $ (498 ) $ 107 $ (391 ) $ 46 $ (15 ) $ 31 (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 (loss) during the period. (2) Pretax amounts are recorded in net realized investment gains (losses). (3) Pretax 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 Other Total (in millions) Balance, July 1, 2018 $ 117 $ — $ (1 ) $ 116 OCI before reclassifications (48 ) — — (48 ) Amounts reclassified from AOCI (3 ) — — (3 ) Total OCI (51 ) — — (51 ) Balance, September 30, 2018 $ 66 (1) $ — $ (1 ) $ 65 Balance, January 1, 2018 $ 458 $ (1 ) $ (1 ) $ 456 OCI before reclassifications (381 ) — — (381 ) Amounts reclassified from AOCI (11 ) 1 — (10 ) Total OCI (392 ) 1 — (391 ) Balance, September 30, 2018 $ 66 (1) $ — $ (1 ) $ 65 Net Unrealized Securities Gains Net Unrealized Derivatives Gains Other Total (in millions) Balance, July 1, 2017 $ 497 $ (2 ) $ (1 ) $ 494 OCI before reclassifications (5 ) — — (5 ) Amounts reclassified from AOCI (2 ) 1 — (1 ) Total OCI (7 ) 1 — (6 ) Balance, September 30, 2017 $ 490 (1) $ (1 ) $ (1 ) $ 488 Balance, January 1, 2017 $ 461 $ (4 ) $ — $ 457 OCI before reclassifications 51 — (1 ) 50 Amounts reclassified from AOCI (22 ) 3 — (19 ) Total OCI 29 3 (1 ) 31 Balance, September 30, 2017 $ 490 (1) $ (1 ) $ (1 ) $ 488 (1) Includes nil and $2 million of noncredit related impairments on securities and net unrealized securities gains (losses) on previously impaired securities as of September 30, 2018 and September 30, 2017 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes In December of 2017, the Tax Act reduced federal income tax rates from 35% to 21% for tax years after 2017. The Company’s effective tax rate was (4.2)% and 11.8% for the three months ended September 30, 2018 and 2017 , respectively. The Company’s effective tax rate was 4.3% and 9.4% for the nine months ended September 30, 2018 and 2017 , respectively. The effective tax rate for the three months ended September 30, 2018 is lower than the statutory rate as a result of tax preferred items including low income housing tax credits, the dividends received deduction, an $8 million benefit related to the Internal Revenue Service’s (“IRS”) acceptance of a change in tax accounting method and foreign tax credits. The effective tax rate for the nine months ended September 30, 2018 is lower than the statutory rate as a result tax preferred items including low income housing tax credits, the dividends received deduction and foreign tax credits. The effective tax rate for the three months ended September 30, 2017 was lower than the statutory rate as a result of tax preferred items including the dividends received deduction and low income housing tax credits. The effective tax rate for the nine months ended September 30, 2017 was lower than the statutory rate as a result of tax preferred items including the dividends received deduction and low income housing tax credits, as well as a $20 million benefit in the first quarter of 2017 related to an out-of-period correction for a reversal of a tax reserve. The decrease in the effective tax rate for the three months ended September 30, 2018 compared to the prior period is primarily due to the reduced federal income tax rate, a decrease in pretax income and an $8 million benefit related to the IRS’s acceptance of a change in tax accounting method, partially offset by a decrease in the dividends received deduction. The decrease in the effective tax rate for the nine months ended September 30, 2018 compared to the prior year period is primarily due to the reduced federal income tax rate and an increase in low income housing and foreign tax credits, partially offset by a decrease in the dividends received deduction and a $20 million benefit in the first quarter of 2017 related to an out-of-period correction for a reversal of a tax reserve. As of December 31, 2017, the Company had not fully completed its accounting for the tax effects of the enactment of the Tax Act. However, the Company was able to provide reasonable estimates of the Tax Act’s impact; accordingly, the Company recorded a provisional tax amount of $136 million to remeasure certain deferred tax assets and liabilities as of December 31, 2017 . In the third quarter of 2018, the Company finalized its accounting related to the Tax Act and determined no adjustment were necessary. Included in the Company’s deferred income tax assets are tax benefits related to state net operating losses of $10 million , net of federal benefit, which will expire beginning December 31, 2018. The Company is required to establish a valuation allowance for any portion of the deferred tax assets that management believes will not be realized. 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 $12 million and $11 million as of September 30, 2018 and December 31, 2017 , respectively. As of September 30, 2018 and December 31, 2017 , the Company had $16 million and $14 million , respectively, of gross unrecognized tax benefits. If recognized, approximately $6 million and $5 million , net of federal tax benefits, of unrecognized tax benefits as of September 30, 2018 and December 31, 2017 , respectively, would affect the effective tax rate. It is reasonably possible that the total amount 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 approximately $10 million in the next 12 months primarily due to resolution of audits and statute expirations. The Company recognizes interest and penalties related to unrecognized tax benefits as a component of the income tax provision. The Company recognized nil in interest and penalties for both the three months and nine months ended September 30, 2018 . The Company recognized a net increase (decrease) of $(1) million and $1 million in interest and penalties for the three months and nine months ended September 30, 2017 , respectively. As of both September 30, 2018 and December 31, 2017 , the Company had a payable of $1 million related to accrued interest and penalties. |
Contingencies
Contingencies | 9 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | 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. 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. RiverSource Life Insurance Company and RiverSource Life of NY are required by law to be a member of the guaranty fund association in every state where they are 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. As of September 30, 2018 and December 31, 2017 , the estimated liability was $13 million and $14 million , respectively. As of both September 30, 2018 and December 31, 2017 , the related premium tax asset was $12 million |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue [Table Text Block] | The following table presents disaggregated revenue from contracts with customers and a reconciliation to total revenues reported on the Consolidated Statements of Income. Revenues related to manufacturing of insurance and annuity products or financial instruments are not in the scope of this standard and are included in the table below under the heading Revenue from other sources. See Note 2 for additional information on the adoption of the new accounting standard. Three Months Ended September 30, Nine Months Ended 2018 2017 2018 2017 (in millions) Policy and contract charges Affiliated $ 43 $ 43 $ 129 $ 124 Unaffiliated 4 4 12 12 Total 47 47 141 136 Other revenues Administrative fees Affiliated 11 10 33 31 Unaffiliated 5 6 17 17 16 16 50 48 Other fees Affiliated 85 82 256 242 Unaffiliated 1 1 3 3 86 83 259 245 Total 102 99 309 293 Total revenue from contracts with customers 149 146 450 429 Revenue from other sources (1) 879 761 2,509 2,426 Total revenues $ 1,028 $ 907 $ 2,959 $ 2,855 (1) |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Available-for-Sale Securities Disclosure [Table Text Block] | Available-for-Sale securities distributed by type were as follows: Description of Securities September 30, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Noncredit OTTI (1) (in millions) Fixed maturities: Corporate debt securities $ 12,147 $ 658 $ (126 ) $ 12,679 $ — Residential mortgage backed securities 2,959 19 (71 ) 2,907 — Commercial mortgage backed securities 3,748 15 (125 ) 3,638 — State and municipal obligations 1,126 157 (5 ) 1,278 — Asset backed securities 651 25 (5 ) 671 — Foreign government bonds and obligations 296 10 (8 ) 298 — U.S. government and agency obligations 1 — — 1 — Total $ 20,928 $ 884 $ (340 ) $ 21,472 $ — Description of Securities December 31, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Noncredit OTTI (1) (in millions) Fixed maturities: Corporate debt securities $ 12,133 $ 1,125 $ (25 ) $ 13,233 $ — Residential mortgage backed securities 2,979 54 (22 ) 3,011 — Commercial mortgage backed securities 3,554 47 (32 ) 3,569 — State and municipal obligations 1,114 209 (9 ) 1,314 — Asset backed securities 700 30 (2 ) 728 — Foreign government bonds and obligations 283 20 (4 ) 299 — U.S. government and agency obligations 1 — — 1 — Total fixed maturities 20,764 1,485 (94 ) 22,155 — Common stocks 1 — (1 ) — — Total $ 20,765 $ 1,485 $ (95 ) $ 22,155 $ — (1) |
Fixed Maturity Securities by Rating Disclosure [Table Text Block] | A summary of fixed maturity securities by rating was as follows: Ratings September 30, 2018 December 31, 2017 Amortized Cost Fair Value Percent of Total Fair Value Amortized Cost Fair Value Percent of Total Fair Value (in millions, except percentages) AAA $ 6,595 $ 6,427 30 % $ 6,259 $ 6,303 28 % AA 1,002 1,136 5 1,090 1,285 6 A 2,959 3,195 15 3,443 3,902 18 BBB 9,461 9,806 46 8,796 9,465 43 Below investment grade 911 908 4 1,176 1,200 5 Total fixed maturities $ 20,928 $ 21,472 100 % $ 20,764 $ 22,155 100 % |
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: Description of Securities September 30, 2018 Less than 12 months 12 months or more Total Number of Securities Fair Value Unrealized Losses Number of Securities Fair Value Unrealized Losses Number of Securities Fair Value Unrealized Losses (in millions, except number of securities) Corporate debt securities 271 $ 4,580 $ (91 ) 48 $ 455 $ (35 ) 319 $ 5,035 $ (126 ) Residential mortgage backed securities 85 1,522 (28 ) 44 733 (43 ) 129 2,255 (71 ) Commercial mortgage backed securities 100 1,722 (57 ) 65 1,093 (68 ) 165 2,815 (125 ) State and municipal obligations 27 117 (2 ) 16 112 (3 ) 43 229 (5 ) Asset backed securities 24 295 (3 ) 12 58 (2 ) 36 353 (5 ) Foreign government bonds and obligations 15 53 (3 ) 14 17 (5 ) 29 70 (8 ) Total 522 $ 8,289 $ (184 ) 199 $ 2,468 $ (156 ) 721 $ 10,757 $ (340 ) Description of Securities December 31, 2017 Less than 12 months 12 months or more Total Number of Securities Fair Value Unrealized Losses Number of Securities Fair Value Unrealized Losses Number of Securities Fair Value Unrealized Losses (in millions, except number of securities) Corporate debt securities 82 $ 834 $ (5 ) 39 $ 360 $ (20 ) 121 $ 1,194 $ (25 ) Residential mortgage backed securities 36 546 (4 ) 41 657 (18 ) 77 1,203 (22 ) Commercial mortgage backed securities 56 994 (10 ) 42 663 (22 ) 98 1,657 (32 ) State and municipal obligations 19 35 — 8 138 (9 ) 27 173 (9 ) Asset backed securities 15 116 — 12 76 (2 ) 27 192 (2 ) Foreign government bonds and obligations 3 6 — 15 23 (4 ) 18 29 (4 ) Common stocks — — — 3 1 (1 ) 3 1 (1 ) Total 211 $ 2,531 $ (19 ) 160 $ 1,918 $ (76 ) 371 $ 4,449 $ (95 ) |
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 OCI: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 (in millions) Beginning balance $ — $ — $ — $ 21 Reductions for securities sold during the period (realized) — — — (21 ) Ending balance $ — $ — $ — $ — |
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, 2018 2017 2018 2017 (in millions) Gross realized investment gains $ 4 $ 5 $ 14 $ 38 Gross realized investment losses — (2 ) — (4 ) Total $ 4 $ 3 $ 14 $ 34 |
Available-for-Sale Securities Contractual Maturity Disclosure [Table Text Block] | Available-for-Sale securities by contractual maturity as of September 30, 2018 were as follows: Amortized Cost Fair Value (in millions) Due within one year $ 1,320 $ 1,337 Due after one year through five years 4,853 4,876 Due after five years through 10 years 3,383 3,358 Due after 10 years 4,014 4,685 13,570 14,256 Residential mortgage backed securities 2,959 2,907 Commercial mortgage backed securities 3,748 3,638 Asset backed securities 651 671 Total $ 20,928 $ 21,472 |
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, 2018 2017 2018 2017 (in millions) Fixed maturities $ 227 $ 237 $ 686 $ 717 Mortgage loans 29 34 88 103 Other investments (7 ) (4 ) 1 (4 ) 249 267 775 816 Less: investment expenses 6 6 18 19 Total $ 243 $ 261 $ 757 $ 797 |
Financing Receivables (Tables)
Financing Receivables (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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, 2018 2017 (in millions) Beginning balance $ 22 $ 25 Charge-offs (2 ) — Ending balance $ 20 $ 25 Individually evaluated for impairment $ — $ 3 Collectively evaluated for impairment 20 22 |
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, (in millions) Individually evaluated for impairment $ 14 $ 17 Collectively evaluated for impairment 2,937 3,015 Total $ 2,951 $ 3,032 |
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, December 31, September 30, December 31, (in millions) South Atlantic $ 703 $ 735 27 % 28 % Pacific 761 771 30 29 Mountain 228 242 9 9 West North Central 211 223 8 8 East North Central 204 209 8 8 Middle Atlantic 172 179 7 7 West South Central 132 125 5 5 New England 55 67 2 3 East South Central 90 84 4 3 2,556 2,635 100 % 100 % Less: allowance for loan losses 16 16 Total $ 2,540 $ 2,619 |
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, December 31, September 30, December 31, (in millions) Retail $ 856 $ 893 33 % 34 % Office 419 470 16 18 Apartments 565 536 22 20 Industrial 424 451 17 17 Mixed use 38 38 2 1 Hotel 43 39 2 2 Other 211 208 8 8 2,556 2,635 100 % 100 % Less: allowance for loan losses 16 16 Total $ 2,540 $ 2,619 |
Deferred Acquisition Costs an_2
Deferred Acquisition Costs and Deferred Sales Inducement Costs (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Deferred Charges, Insurers [Abstract] | |
Schedule of balances of and changes in DAC | The balances of and changes in DAC were as follows: 2018 2017 (in millions) Balance at January 1 $ 2,639 $ 2,611 Capitalization of acquisition costs 192 173 Amortization, excluding the impact of valuation assumptions review (166 ) (154 ) Amortization, impact of valuation assumptions review 33 12 Impact of change in net unrealized (gains) losses on securities 95 (18 ) Balance at September 30 $ 2,793 $ 2,624 |
Schedule of balances of and changes in DSIC | The balances of and changes in DSIC , which is included in other assets, were as follows: 2018 2017 (in millions) Balance at January 1 $ 273 $ 301 Capitalization of sales inducement costs 2 3 Amortization, excluding the impact of valuation assumptions review (26 ) (27 ) Amortization, impact of valuation assumptions review — (1 ) Impact of change in net unrealized (gains) losses on securities 16 1 Balance at September 30 $ 265 $ 277 |
Policyholder Account Balances_2
Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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, (in millions) Policyholder account balances Fixed annuities (1) $ 9,499 $ 9,934 Variable annuity fixed sub-accounts 5,127 5,166 VUL/UL insurance 3,057 3,047 Indexed universal life (“IUL”) insurance 1,649 1,384 Other life insurance 689 720 Total policyholder account balances 20,021 20,251 Future policy benefits Variable annuity guaranteed minimum withdrawal benefits (“GMWB”) (125 ) (2) 463 Variable annuity guaranteed minimum accumulation benefits (“GMAB”) (83 ) (3) (80 ) (3) Other annuity liabilities 26 78 Fixed annuity life contingent liabilities 1,464 1,484 Life and disability income insurance 1,219 1,221 Long term care insurance 4,997 4,896 VUL/UL and other life insurance additional liabilities 807 688 Total future policy benefits 8,305 8,750 Policy claims and other policyholders’ funds 150 177 Total policyholder account balances, future policy benefits and claims $ 28,476 $ 29,178 (1) Includes fixed deferred annuities, non-life contingent fixed payout annuities and indexed annuity host contracts. (2) Includes the fair value of GMWB embedded derivatives that was a net asset as of September 30, 2018 reported as a contra liability. (3) Includes the fair value of GMAB embedded derivatives that was a net asset as of both September 30, 2018 and December 31, 2017 |
Schedule of Separate Account Liabilities by Policy Type | Separate account liabilities consisted of the following: September 30, December 31, (in millions) Variable annuity $ 74,317 $ 75,174 VUL insurance 7,338 7,352 Other insurance 33 34 Total $ 81,688 $ 82,560 |
Variable Annuity and Insuranc_2
Variable Annuity and Insurance Guarantees (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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, 2018 December 31, 2017 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 $ 61,379 $ 59,441 $ 12 67 $ 61,418 $ 59,461 $ 9 66 Five/six-year reset 8,504 5,781 11 66 8,870 6,149 12 66 One-year ratchet 6,215 5,864 19 69 6,548 6,187 11 69 Five-year ratchet 1,471 1,416 1 65 1,563 1,506 1 65 Other 1,126 1,107 63 72 1,099 1,075 50 72 Total — GMDB $ 78,695 $ 73,609 $ 106 67 $ 79,498 $ 74,378 $ 83 66 GGU death benefit $ 1,105 $ 1,055 $ 129 70 $ 1,118 $ 1,067 $ 133 70 GMIB $ 208 $ 192 $ 7 69 $ 233 $ 216 $ 7 69 GMWB: GMWB $ 2,252 $ 2,245 $ 1 72 $ 2,508 $ 2,500 $ 1 71 GMWB for life 44,871 44,776 217 68 44,375 44,259 129 67 Total — GMWB $ 47,123 $ 47,021 $ 218 68 $ 46,883 $ 46,759 $ 130 67 GMAB $ 2,762 $ 2,758 $ — 59 $ 3,086 $ 3,083 $ — 59 (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, 2018 December 31, 2017 Net Amount at Risk Weighted Average Attained Age Net Amount at Risk Weighted Average Attained Age (in millions, except age) UL secondary guarantees $ 6,499 66 $ 6,460 65 |
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, 2017 $ 16 $ 8 $ 1,017 $ (24 ) $ 434 Incurred claims 3 — (478 ) (49 ) 59 Paid claims (3 ) (1 ) — — (22 ) Balance at September 30, 2017 $ 16 $ 7 $ 539 $ (73 ) $ 471 Balance at January 1, 2018 $ 17 $ 6 $ 463 $ (80 ) $ 489 Incurred claims 5 — (588 ) (3 ) 171 Paid claims (4 ) — — — (19 ) Balance at September 30, 2018 $ 18 $ 6 $ (125 ) $ (83 ) $ 641 (1) |
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, 2017 (in millions) Mutual funds: Equity $ 44,968 $ 46,038 Bond 22,846 23,529 Other 6,059 5,109 Total mutual funds $ 73,873 $ 74,676 |
Fair Values of Assets and Lia_2
Fair Values of Assets and Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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, 2018 Level 1 Level 2 Level 3 Total (in millions) Assets Available-for-Sale securities: Fixed maturities: Corporate debt securities $ — $ 11,729 $ 950 $ 12,679 Residential mortgage backed securities — 2,842 65 2,907 Commercial mortgage backed securities — 3,638 — 3,638 State and municipal obligations — 1,278 — 1,278 Asset backed securities — 671 — 671 Foreign government bonds and obligations — 298 — 298 U.S. government and agency obligations 1 — — 1 Total Available-for-Sale securities: Fixed maturities 1 20,456 1,015 21,472 Equity securities 1 — — 1 Cash equivalents — 635 — 635 Other assets: Interest rate derivative contracts — 609 — 609 Equity derivative contracts 87 2,544 — 2,631 Foreign exchange derivative contracts — 43 — 43 Credit derivative contracts — 7 — 7 Total other assets 87 3,203 — 3,290 Separate account assets at net asset value (“NAV”) 81,688 (1) Total assets at fair value $ 89 $ 24,294 $ 1,015 $ 107,086 Liabilities Policyholder account balances, future policy benefits and claims: Indexed annuity embedded derivatives $ — $ 4 $ 11 $ 15 IUL embedded derivatives — — 684 684 GMWB and GMAB embedded derivatives — — (686 ) (686 ) (2) Total policyholder account balances, future policy benefits and claims — 4 9 13 (3) Other liabilities: Interest rate derivative contracts 1 601 — 602 Equity derivative contracts 13 3,005 — 3,018 Foreign exchange derivative contracts — 27 — 27 Total other liabilities 14 3,633 — 3,647 Total liabilities at fair value $ 14 $ 3,637 $ 9 $ 3,660 December 31, 2017 Level 1 Level 2 Level 3 Total (in millions) Assets Available-for-Sale securities: Fixed maturities: Corporate debt securities $ — $ 12,161 $ 1,072 $ 13,233 Residential mortgage backed securities — 2,924 87 3,011 Commercial mortgage backed securities — 3,569 — 3,569 State and municipal obligations — 1,314 — 1,314 Asset backed securities — 728 — 728 Foreign government bonds and obligations — 299 — 299 U.S. government and agency obligations 1 — — 1 Total Available-for-Sale securities: Fixed maturities 1 20,995 1,159 22,155 Cash equivalents — 1,030 — 1,030 Other assets: Interest rate derivative contracts — 1,081 — 1,081 Equity derivative contracts 62 2,305 — 2,367 Foreign exchange derivative contracts 1 34 — 35 Total other assets 63 3,420 — 3,483 Separate account assets at NAV 82,560 (1) Total assets at fair value $ 64 $ 25,445 $ 1,159 $ 109,228 Liabilities Policyholder account balances, future policy benefits and claims: Indexed annuity embedded derivatives $ — $ 5 $ — $ 5 IUL embedded derivatives — — 601 601 GMWB and GMAB embedded derivatives — — (49 ) (49 ) (4) Total policyholder account balances, future policy benefits and claims — 5 552 557 (5) Other liabilities: Interest rate derivative contracts 1 414 — 415 Equity derivative contracts 5 2,666 — 2,671 Foreign exchange derivative contracts — 23 — 23 Credit derivative contracts — 2 — 2 Total other liabilities 6 3,105 — 3,111 Total liabilities at fair value $ 6 $ 3,110 $ 552 $ 3,668 (1) Amounts are comprised of certain financial instruments 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. (2) The fair value of the GMWB and GMAB embedded derivatives included $178 million of individual contracts in a liability position and $864 million of individual contracts in an asset position as of September 30, 2018 . (3) The Company’s adjustment for nonperformance risk resulted in a $(370) million cumulative increase (decrease) to the embedded derivatives as of September 30, 2018 . (4) The fair value of the GMWB and GMAB embedded derivatives included $443 million of individual contracts in a liability position and $492 million of individual contracts in an asset position as of December 31, 2017 . (5) The Company’s adjustment for nonperformance risk resulted in a $(399) million cumulative increase (decrease) to the embedded derivatives as of December 31, 2017 |
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, 2018 $ 998 $ 69 $ 12 $ 10 $ 1,089 $ 2 Total gains (losses) included in: Net income — — — — — (2 ) (1) Other comprehensive income (2 ) — — — (2 ) — Settlements (46 ) (1 ) — — (47 ) — Transfers out Level 3 — (3 ) (12 ) (10 ) (25 ) — Balance, September 30, 2018 $ 950 $ 65 $ — $ — $ 1,015 $ — Changes in unrealized gains (losses) relating to assets held at September 30, 2018 $ — $ — $ — $ — $ — $ (2 ) (1) Policyholder Account Balances, Future Policy Benefits and Claims Indexed Annuity Embedded Derivatives IUL Embedded Derivatives GMWB and GMAB Embedded Derivatives Total (in millions) Balance, July 1, 2018 $ 8 $ 620 $ (425 ) $ 203 Total (gains) losses included in: Net income — 55 (2) (344 ) (1) (289 ) Issues 3 24 90 117 Settlements — (15 ) (7 ) (22 ) Balance, September 30, 2018 $ 11 $ 684 $ (686 ) $ 9 Changes in unrealized (gains) losses relating to liabilities held at September 30, 2018 $ — $ 55 (2) $ (347 ) (1) $ (292 ) 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, July 1, 2017 $ 1,190 $ 89 $ — $ 11 $ 1,290 $ — Total gains (losses) included in: Net income 1 — — — 1 (3) — Other comprehensive income (1 ) 1 — — — — Purchases 38 — 35 — 73 — Settlements (82 ) (1 ) — — (83 ) — Transfers into Level 3 — — — — — 1 Transfers out of Level 3 — — — (11 ) (11 ) — Balance, September 30, 2017 $ 1,146 $ 89 $ 35 $ — $ 1,270 $ 1 Changes in unrealized gains (losses) relating to assets held at September 30, 2017 $ 1 $ — $ — $ — $ 1 (3) $ — Policyholder Account Balances, Future Policy Benefits and Claims IUL Embedded Derivatives GMWB and GMAB Embedded Derivatives Total (in millions) Balance, July 1, 2017 $ 527 $ 272 $ 799 Total (gains) losses included in: Net income 35 (2) (309 ) (1) (274 ) Issues 26 84 110 Settlements (11 ) (2 ) (13 ) Balance, September 30, 2017 $ 577 $ 45 $ 622 Changes in unrealized (gains) losses relating to liabilities held at $ 35 (2) $ (307 ) (1) $ (272 ) 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, 2018 $ 1,072 $ 87 $ — $ — $ 1,159 $ — Total gains (losses) included in: Net income (1 ) — — — (1 ) (3) (3 ) (1) Other comprehensive income (28 ) 1 — — (27 ) — Purchases 15 — 12 10 37 3 Settlements (108 ) (5 ) — — (113 ) — Transfers out of Level 3 — (18 ) (12 ) (10 ) (40 ) — Balance, September 30, 2018 $ 950 $ 65 $ — $ — $ 1,015 $ — Changes in unrealized gains (losses) relating to assets held at September 30, 2018 $ (1 ) $ — $ — $ — $ (1 ) (3) $ (3 ) (1) Policyholder Account Balances, Future Policy Benefits and Claims Indexed Annuity Embedded Derivatives IUL Embedded Derivatives GMWB and GMAB Embedded Derivatives Total (in millions) Balance, January 1, 2018 $ — $ 601 $ (49 ) $ 552 Total (gains) losses included in: Net income — 56 (2) (875 ) (1) (819 ) Issues 11 65 257 333 Settlements — (38 ) (19 ) (57 ) Balance, September 30, 2018 $ 11 $ 684 $ (686 ) $ 9 Changes in unrealized (gains) losses relating to liabilities held at September 30, 2018 $ — $ 56 (2) $ (868 ) (1) $ (812 ) 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, 2017 $ 1,157 $ 115 $ — $ 13 $ 1,285 $ — Total gains (losses) included in: Net income 1 — — — 1 (3) — Other comprehensive income 1 1 — — 2 — Purchases 96 67 35 49 247 — Settlements (109 ) (5 ) — (13 ) (127 ) — Transfers into Level 3 — — — 11 11 5 Transfers out of Level 3 — (89 ) — (60 ) (149 ) (4 ) Balance, September 30, 2017 $ 1,146 $ 89 $ 35 $ — $ 1,270 $ 1 Changes in unrealized gains (losses) relating to assets held at September 30, 2017 $ 1 $ — $ — $ — $ 1 (3) $ — Policyholder Account Balances, Future Policy Benefits and Claims IUL Embedded Derivatives GMWB and GMAB Embedded Derivatives Total (in millions) Balance, January 1, 2017 $ 464 $ 614 $ 1,078 Total (gains) losses included in: Net income 75 (2) (798 ) (1) (723 ) Issues 70 238 308 Settlements (32 ) (9 ) (41 ) Balance, September 30, 2017 $ 577 $ 45 $ 622 Changes in unrealized (gains) losses relating to liabilities held at $ 75 (2) $ (771 ) (1) $ (696 ) (1) Included in benefits, claims, losses and settlement expenses in the Consolidated Statements of Income. (2) Included in interest credited to fixed accounts in the Consolidated Statements of Income. (3) Included in net investment income 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, 2018 Fair Value Valuation Technique Unobservable Input Range Weighted Average (in millions) Corporate debt securities (private placements) $ 949 Discounted cash flow Yield/spread to U.S. Treasuries 0.7 % - 2.4% 1.2 % IUL embedded derivatives $ 684 Discounted cash flow Nonperformance risk (1) 83 bps Indexed annuity embedded derivatives $ 11 Discounted cash flow Surrender rate 0.0 % - 50.0% Nonperformance risk (1) 83 bps GMWB and GMAB embedded derivatives $ (686 ) Discounted cash flow Utilization of guaranteed withdrawals (2) 0.0 % - 36.0% Surrender rate 0.1 % - 73.4% Market volatility (3) 3.7 % - 15.5% Nonperformance risk (1) 83 bps December 31, 2017 Fair Value Valuation Technique Unobservable Input Range Weighted Average (in millions) Corporate debt securities (private placements) $ 1,070 Discounted cash flow Yield/spread to U.S. Treasuries 0.7 % - 2.3% 1.1 % IUL embedded derivatives $ 601 Discounted cash flow Nonperformance risk (1) 71 bps GMWB and GMAB embedded derivatives $ (49 ) Discounted cash flow Utilization of guaranteed withdrawals (2) 0.0 % - 42.0% Surrender rate 0.1 % - 74.7% Market volatility (3) 3.7 % - 16.1% Nonperformance risk (1) 71 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) |
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, 2018 Carrying Value Fair Value Level 1 Level 2 Level 3 Total (in millions) Financial Assets Mortgage loans, net $ 2,540 $ — $ — $ 2,479 $ 2,479 Policy loans 854 — — 805 805 Other investments 407 — 384 25 409 Financial Liabilities Policyholder account balances, future policy benefits and claims $ 9,786 $ — $ — $ 9,846 $ 9,846 Short-term borrowings 201 — 201 — 201 Other liabilities 75 — — 72 72 Separate account liabilities at NAV 371 371 (1) December 31, 2017 Carrying Value Fair Value Level 1 Level 2 Level 3 Total (in millions) Financial Assets Mortgage loans, net $ 2,619 $ — $ — $ 2,616 $ 2,616 Policy loans 845 — — 801 801 Other investments 408 — 373 36 409 Financial Liabilities Policyholder account balances, future policy benefits and claims $ 10,246 $ — $ — $ 10,755 $ 10,755 Short-term borrowings 200 — 200 — 200 Other liabilities 123 — — 119 119 Separate account liabilities at NAV 369 369 (1) (1) |
Offsetting Assets and Liabili_2
Offsetting Assets and Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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, 2018 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 $ 3,263 $ — $ 3,263 $ (2,850 ) $ (396 ) $ (4 ) $ 13 OTC cleared 10 — 10 (9 ) — — 1 Exchange-traded 17 — 17 (1 ) — — 16 Total derivatives $ 3,290 $ — $ 3,290 $ (2,860 ) $ (396 ) $ (4 ) $ 30 December 31, 2017 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 $ 3,440 $ — $ 3,440 $ (2,599 ) $ (736 ) $ (88 ) $ 17 OTC cleared 21 — 21 (15 ) — — 6 Exchange-traded 22 — 22 (1 ) — — 21 Total derivatives $ 3,483 $ — $ 3,483 $ (2,615 ) $ (736 ) $ (88 ) $ 44 (1) |
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, 2018 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 $ 3,636 $ — $ 3,636 $ (2,850 ) $ (44 ) $ (742 ) $ — OTC cleared 9 — 9 (9 ) — — — Exchange-traded 2 — 2 (1 ) — — 1 Total derivatives 3,647 — 3,647 (2,860 ) (44 ) (742 ) 1 Repurchase agreements 51 — 51 — — (51 ) — Total $ 3,698 $ — $ 3,698 $ (2,860 ) $ (44 ) $ (793 ) $ 1 December 31, 2017 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 $ 3,095 $ — $ 3,095 $ (2,599 ) $ (1 ) $ (492 ) $ 3 OTC cleared 15 — 15 (15 ) — — — Exchange-traded 1 — 1 (1 ) — — — Total derivatives 3,111 — 3,111 (2,615 ) (1 ) (492 ) 3 Repurchase agreements 50 — 50 — — (50 ) — Total $ 3,161 $ — $ 3,161 $ (2,615 ) $ (1 ) $ (542 ) $ 3 (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 Activ_2
Derivatives and Hedging Activities (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of notional value and 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, 2018 December 31, 2017 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 $ 58,424 $ 609 $ 602 $ 64,790 $ 1,081 $ 415 Equity contracts 53,666 2,631 3,018 56,649 2,367 2,671 Credit contracts 859 7 — 715 — 2 Foreign exchange contracts 4,141 43 27 3,996 35 23 Other contracts 1,349 — — 450 — — Total non-designated hedges 118,439 3,290 3,647 126,600 3,483 3,111 Embedded derivatives GMWB and GMAB (3) N/A — (686 ) N/A — (49 ) IUL N/A — 684 N/A — 601 Indexed annuities N/A — 15 N/A — 5 Total embedded derivatives N/A — 13 N/A — 557 Total derivatives $ 118,439 $ 3,290 $ 3,660 $ 126,600 $ 3,483 $ 3,668 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 indexed annuity 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 as of September 30, 2018 included $178 million of individual contracts in a liability position and $864 million of individual contracts in an asset position. The fair value of the GMWB and GMAB embedded derivatives as of December 31, 2017 included $443 million of individual contracts in a liability position and $492 million |
Schedule of gain (loss) on derivative instruments, including embedded derivatives [Table Text Block] | The following tables present a summary of the impact of derivatives not designated as hedging instruments, including embedded derivatives, on the Consolidated Statements of Income: Interest Credited to Fixed Accounts Benefits, Claims, Losses and Settlement Expenses (in millions) Three Months Ended September 30, 2018 Interest rate contracts $ — $ (206 ) Equity contracts 34 (210 ) Credit contracts — 4 Foreign exchange contracts — — Other contracts — (2 ) GMWB and GMAB embedded derivatives — 261 IUL embedded derivatives (40 ) — Total gain (loss) $ (6 ) $ (153 ) Nine Months Ended September 30, 2018 Interest rate contracts $ — $ (740 ) Equity contracts 37 (308 ) Credit contracts — 22 Foreign exchange contracts — (1 ) Other contracts — (4 ) GMWB and GMAB embedded derivatives — 637 IUL embedded derivatives (18 ) — Total gain (loss) $ 19 $ (394 ) Interest Credited to Fixed Accounts Benefits, Claims, Losses and Settlement Expenses (in millions) Three Months Ended September 30, 2017 Interest rate contracts $ — $ 15 Equity contracts 18 (241 ) Credit contracts — (3 ) Foreign exchange contracts — 1 Other contracts — (2 ) GMWB and GMAB embedded derivatives — 227 IUL embedded derivatives (24 ) — Total gain (loss) $ (6 ) $ (3 ) Nine Months Ended September 30, 2017 Interest rate contracts $ — $ 63 Equity contracts 50 (859 ) Credit contracts — (22 ) Foreign exchange contracts — (27 ) Other contracts — (2 ) GMWB and GMAB embedded derivatives — 569 IUL embedded derivatives (43 ) — Total gain (loss) $ 7 $ (278 ) |
Schedule of payments to make and receive for options and swaptions [Table Text Block] | The following is a summary of the payments the Company is scheduled to make and receive for these options and swaptions as of September 30, 2018 : Premiums Payable Premiums Receivable (in millions) 2018 (1) $ 51 $ 31 2019 274 169 2020 197 130 2021 168 118 2022 206 198 2023-2026 494 59 Total $ 1,390 $ 705 (1) 2018 amounts represent the amounts payable and receivable for the period from October 1, 2018 to December 31, 2018 |
Shareholder's Equity (Tables)
Shareholder's Equity (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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, 2018 2017 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) $ (89 ) $ 19 $ (70 ) $ 52 $ (18 ) $ 34 Reclassification of net securities (gains) losses included in net income (2) (4 ) 1 (3 ) (3 ) 1 (2 ) Impact of deferred acquisition costs, deferred sales inducement costs, unearned revenue, benefit reserves and reinsurance recoverables 28 (6 ) 22 (61 ) 22 (39 ) Net unrealized securities gains (losses) (65 ) 14 (51 ) (12 ) 5 (7 ) Net unrealized derivatives gains (losses): Reclassification of net derivative (gains) losses included in net income (3) — — — 1 — 1 Net unrealized derivatives gains (losses) — — — 1 — 1 Total other comprehensive income (loss) $ (65 ) $ 14 $ (51 ) $ (11 ) $ 5 $ (6 ) Nine Months Ended September 30, 2018 2017 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) $ (832 ) $ 177 $ (655 ) $ 245 $ (85 ) $ 160 Reclassification of net securities (gains) losses included in net income (2) (14 ) 3 (11 ) (34 ) 12 (22 ) Impact of deferred acquisition costs, deferred sales inducement costs, unearned revenue, benefit reserves and reinsurance recoverables 347 (73 ) 274 (168 ) 59 (109 ) Net unrealized securities gains (losses) (499 ) 107 (392 ) 43 (14 ) 29 Net unrealized derivatives gains (losses): Reclassification of net derivative (gains) losses included in net income (3) 1 — 1 4 (1 ) 3 Net unrealized derivatives gains (losses) 1 — 1 4 (1 ) 3 Other — — — (1 ) — (1 ) Total other comprehensive income (loss) $ (498 ) $ 107 $ (391 ) $ 46 $ (15 ) $ 31 (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 (loss) during the period. (2) Pretax amounts are recorded in net realized investment gains (losses). (3) |
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 Other Total (in millions) Balance, July 1, 2018 $ 117 $ — $ (1 ) $ 116 OCI before reclassifications (48 ) — — (48 ) Amounts reclassified from AOCI (3 ) — — (3 ) Total OCI (51 ) — — (51 ) Balance, September 30, 2018 $ 66 (1) $ — $ (1 ) $ 65 Balance, January 1, 2018 $ 458 $ (1 ) $ (1 ) $ 456 OCI before reclassifications (381 ) — — (381 ) Amounts reclassified from AOCI (11 ) 1 — (10 ) Total OCI (392 ) 1 — (391 ) Balance, September 30, 2018 $ 66 (1) $ — $ (1 ) $ 65 Net Unrealized Securities Gains Net Unrealized Derivatives Gains Other Total (in millions) Balance, July 1, 2017 $ 497 $ (2 ) $ (1 ) $ 494 OCI before reclassifications (5 ) — — (5 ) Amounts reclassified from AOCI (2 ) 1 — (1 ) Total OCI (7 ) 1 — (6 ) Balance, September 30, 2017 $ 490 (1) $ (1 ) $ (1 ) $ 488 Balance, January 1, 2017 $ 461 $ (4 ) $ — $ 457 OCI before reclassifications 51 — (1 ) 50 Amounts reclassified from AOCI (22 ) 3 — (19 ) Total OCI 29 3 (1 ) 31 Balance, September 30, 2017 $ 490 (1) $ (1 ) $ (1 ) $ 488 (1) Includes nil and $2 million of noncredit related impairments on securities and net unrealized securities gains (losses) on previously impaired securities as of September 30, 2018 and September 30, 2017 |
Basis of Presentation (Details)
Basis of Presentation (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |
Mar. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2018item | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Number of wholly owned subsidiaries | item | 1 | ||
Income tax provision [Member] | |||
Quantifying Misstatement in Current Year Financial Statements [Line Items] | |||
Benefit related to an out-of-period correction for a reversal of a tax reserve | $ | $ 20 | $ 20 |
Basis of Presentation (Revenue
Basis of Presentation (Revenue recognition) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Policy and contract charges - increase | $ 576 | $ 448 | [1] | $ 1,579 | $ 1,427 | [1] |
Other revenues - decrease | $ (104) | (99) | [1] | $ (313) | (296) | [1] |
Impact to consolidated statements of income [Member] | Revenue from contracts with customers standard [Member] | ||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Policy and contract charges - increase | 4 | 12 | ||||
Other revenues - decrease | $ 4 | $ 12 | ||||
[1] | Certain prior period amounts have been restated. See Note 1 for more information. |
Revenue from Contract with Cust
Revenue from Contract with Customer (Disaggregation) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | ||
Revenues | ||||||
Revenue from contracts with customers | $ 149 | $ 146 | $ 450 | $ 429 | ||
Revenue from other sources | [1] | 879 | 761 | 2,509 | 2,426 | |
Total revenues | 1,028 | 907 | 2,959 | 2,855 | ||
Receivables related to contracts with customers | 54 | 54 | $ 54 | |||
Policy and contract charges [Member] | ||||||
Revenues | ||||||
Revenue from contracts with customers | 47 | 47 | 141 | 136 | ||
Policy and contract charges [Member] | Affiliated [Member] | ||||||
Revenues | ||||||
Revenue from contracts with customers | 43 | 43 | 129 | 124 | ||
Policy and contract charges [Member] | Unaffiliated [Member] | ||||||
Revenues | ||||||
Revenue from contracts with customers | 4 | 4 | 12 | 12 | ||
Other Revenue [Member] | ||||||
Revenues | ||||||
Revenue from contracts with customers | 102 | 99 | 309 | 293 | ||
Administrative Fees [Member] | ||||||
Revenues | ||||||
Revenue from contracts with customers | 16 | 16 | 50 | 48 | ||
Administrative Fees [Member] | Affiliated [Member] | ||||||
Revenues | ||||||
Revenue from contracts with customers | 11 | 10 | 33 | 31 | ||
Administrative Fees [Member] | Unaffiliated [Member] | ||||||
Revenues | ||||||
Revenue from contracts with customers | 5 | 6 | 17 | 17 | ||
Other Fees [Member] | ||||||
Revenues | ||||||
Revenue from contracts with customers | 86 | 83 | 259 | 245 | ||
Other Fees [Member] | Affiliated [Member] | ||||||
Revenues | ||||||
Revenue from contracts with customers | 85 | 82 | 256 | 242 | ||
Other Fees [Member] | Unaffiliated [Member] | ||||||
Revenues | ||||||
Revenue from contracts with customers | $ 1 | $ 1 | $ 3 | $ 3 | ||
[1] | Revenues not included in the scope of the revenue from contracts with customers standard. |
Variable Interest Entities Va_2
Variable Interest Entities Variable Interest Entities (Details) - VIEs, not primary beneficiary [Member] - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | |
Total fixed maturities [Member] | ||
Variable Interest Entity [Line Items] | ||
Obligation to provide financial or other support to VIEs | $ 0 | |
RiverSource Tax Advantaged Investments Inc [Member] | ||
Variable Interest Entity [Line Items] | ||
Carrying value of investments reflected in other investments | 364 | $ 408 |
Carrying value of liability of other investments | $ 57 | $ 97 |
Investments (AFS by type) (Deta
Investments (AFS by type) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 | |
Investments | |||
Amortized cost | $ 20,928 | $ 20,765 | |
Gross unrealized gains | 1,485 | ||
Gross unrealized losses | (95) | ||
Fair value | 21,472 | 22,155 | |
Noncredit OTTI | [1] | 0 | |
Fair value of securities owned and pledged as collateral | 1,800 | 1,600 | |
Fair value of securities owned and pledged as collateral which are eligible for rehypothecation | 902 | 711 | |
Corporate debt securities [Member] | |||
Investments | |||
Amortized cost | 12,147 | 12,133 | |
Gross unrealized gains | 658 | 1,125 | |
Gross unrealized losses | (126) | (25) | |
Fair value | 12,679 | 13,233 | |
Residential mortgage backed securities [Member] | |||
Investments | |||
Amortized cost | 2,959 | 2,979 | |
Gross unrealized gains | 19 | 54 | |
Gross unrealized losses | (71) | (22) | |
Fair value | 2,907 | 3,011 | |
Commercial mortgage backed securities [Member] | |||
Investments | |||
Amortized cost | 3,748 | 3,554 | |
Gross unrealized gains | 15 | 47 | |
Gross unrealized losses | (125) | (32) | |
Fair value | 3,638 | 3,569 | |
State and municipal obligations [Member] | |||
Investments | |||
Amortized cost | 1,126 | 1,114 | |
Gross unrealized gains | 157 | 209 | |
Gross unrealized losses | (5) | (9) | |
Fair value | 1,278 | 1,314 | |
Asset backed securities [Member] | |||
Investments | |||
Amortized cost | 651 | 700 | |
Gross unrealized gains | 25 | 30 | |
Gross unrealized losses | (5) | (2) | |
Fair value | 671 | 728 | |
Foreign government bonds and obligations [Member] | |||
Investments | |||
Amortized cost | 296 | 283 | |
Gross unrealized gains | 10 | 20 | |
Gross unrealized losses | (8) | (4) | |
Fair value | 298 | 299 | |
U.S. government and agencies obligations [Member] | |||
Investments | |||
Amortized cost | 1 | 1 | |
Fair value | 1 | 1 | |
Total fixed maturities [Member] | |||
Investments | |||
Amortized cost | 20,928 | 20,764 | |
Gross unrealized gains | 884 | 1,485 | |
Gross unrealized losses | (340) | (94) | |
Fair value | 21,472 | 22,155 | |
Noncredit OTTI | [1] | $ 0 | $ 0 |
Fixed maturity securities as percentage of total investments | 84.00% | 84.00% | |
Fixed maturity securities rated internally | $ 773 | $ 906 | |
Common stocks [Member] | |||
Investments | |||
Amortized cost | 1 | ||
Gross unrealized gains | 0 | ||
Gross unrealized losses | (1) | ||
Fair value | $ 0 | ||
[1] | Represents the amount of other-than-temporary impairment (“OTTI”) losses in 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, 2018USD ($)item | Dec. 31, 2017USD ($)item |
Investments | ||
Amortized cost | $ 20,928 | $ 20,764 |
Fair value | $ 21,472 | $ 22,155 |
Percentage of securities rated AAA that were GNMA, FNMA and FHLMC | 34.00% | 35.00% |
Investment holdings of single issuer other than GNMA, FNMA and FHLMC greater than 10% of shareholders equity | $ 456 | |
Number of other investment holdings other than GNMA, FNMA and FHLMC that are greater than 10% of total equity | item | 0 | 0 |
AAA [Member] | ||
Investments | ||
Amortized cost | $ 6,595 | $ 6,259 |
Fair value | $ 6,427 | $ 6,303 |
Percent of total fair value | 30.00% | 28.00% |
AA [Member] | ||
Investments | ||
Amortized cost | $ 1,002 | $ 1,090 |
Fair value | $ 1,136 | $ 1,285 |
Percent of total fair value | 5.00% | 6.00% |
A [Member] | ||
Investments | ||
Amortized cost | $ 2,959 | $ 3,443 |
Fair value | $ 3,195 | $ 3,902 |
Percent of total fair value | 15.00% | 18.00% |
BBB [Member] | ||
Investments | ||
Amortized cost | $ 9,461 | $ 8,796 |
Fair value | $ 9,806 | $ 9,465 |
Percent of total fair value | 46.00% | 43.00% |
Below investment grade [Member] | ||
Investments | ||
Amortized cost | $ 911 | $ 1,176 |
Fair value | $ 908 | $ 1,200 |
Percent of total fair value | 4.00% | 5.00% |
Total fixed maturities [Member] | ||
Investments | ||
Amortized cost | $ 20,928 | $ 20,764 |
Fair value | $ 21,472 | $ 22,155 |
Percent of total fair value | 100.00% | 100.00% |
Investments (EITF info) (Detail
Investments (EITF info) (Details) $ in Millions | Sep. 30, 2018USD ($)item | Dec. 31, 2017USD ($)item |
Number of Securities | ||
Less than 12 months | item | 522 | 211 |
12 months or more | item | 199 | 160 |
Total | item | 721 | 371 |
Fair Value | ||
Less than 12 months | $ 8,289 | $ 2,531 |
12 months or more | 2,468 | 1,918 |
Total | 10,757 | 4,449 |
Unrealized Losses | ||
Less than 12 months | (184) | (19) |
12 months or more | (156) | (76) |
Total | $ (340) | $ (95) |
Corporate debt securities [Member] | ||
Number of Securities | ||
Less than 12 months | item | 271 | 82 |
12 months or more | item | 48 | 39 |
Total | item | 319 | 121 |
Fair Value | ||
Less than 12 months | $ 4,580 | $ 834 |
12 months or more | 455 | 360 |
Total | 5,035 | 1,194 |
Unrealized Losses | ||
Less than 12 months | (91) | (5) |
12 months or more | (35) | (20) |
Total | $ (126) | $ (25) |
Residential mortgage backed securities [Member] | ||
Number of Securities | ||
Less than 12 months | item | 85 | 36 |
12 months or more | item | 44 | 41 |
Total | item | 129 | 77 |
Fair Value | ||
Less than 12 months | $ 1,522 | $ 546 |
12 months or more | 733 | 657 |
Total | 2,255 | 1,203 |
Unrealized Losses | ||
Less than 12 months | (28) | (4) |
12 months or more | (43) | (18) |
Total | $ (71) | $ (22) |
Commercial mortgage backed securities [Member] | ||
Number of Securities | ||
Less than 12 months | item | 100 | 56 |
12 months or more | item | 65 | 42 |
Total | item | 165 | 98 |
Fair Value | ||
Less than 12 months | $ 1,722 | $ 994 |
12 months or more | 1,093 | 663 |
Total | 2,815 | 1,657 |
Unrealized Losses | ||
Less than 12 months | (57) | (10) |
12 months or more | (68) | (22) |
Total | $ (125) | $ (32) |
State and municipal obligations [Member] | ||
Number of Securities | ||
Less than 12 months | item | 27 | 19 |
12 months or more | item | 16 | 8 |
Total | item | 43 | 27 |
Fair Value | ||
Less than 12 months | $ 117 | $ 35 |
12 months or more | 112 | 138 |
Total | 229 | 173 |
Unrealized Losses | ||
Less than 12 months | (2) | 0 |
12 months or more | (3) | (9) |
Total | $ (5) | $ (9) |
Asset backed securities [Member] | ||
Number of Securities | ||
Less than 12 months | item | 24 | 15 |
12 months or more | item | 12 | 12 |
Total | item | 36 | 27 |
Fair Value | ||
Less than 12 months | $ 295 | $ 116 |
12 months or more | 58 | 76 |
Total | 353 | 192 |
Unrealized Losses | ||
Less than 12 months | (3) | 0 |
12 months or more | (2) | (2) |
Total | $ (5) | $ (2) |
Foreign government bonds and obligations [Member] | ||
Number of Securities | ||
Less than 12 months | item | 15 | 3 |
12 months or more | item | 14 | 15 |
Total | item | 29 | 18 |
Fair Value | ||
Less than 12 months | $ 53 | $ 6 |
12 months or more | 17 | 23 |
Total | 70 | 29 |
Unrealized Losses | ||
Less than 12 months | (3) | 0 |
12 months or more | (5) | (4) |
Total | $ (8) | $ (4) |
Common stocks [Member] | ||
Number of Securities | ||
12 months or more | item | 3 | |
Total | item | 3 | |
Fair Value | ||
12 months or more | $ 1 | |
Total | 1 | |
Unrealized Losses | ||
12 months or more | (1) | |
Total | $ (1) |
Investments Investments (OTTI r
Investments Investments (OTTI rollforward) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
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 | $ 0 | $ 0 | $ 0 | $ 21 |
Reductions for securities sold during the period (realized) | 0 | 0 | 0 | 21 |
Ending balance | $ 0 | $ 0 | $ 0 | $ 0 |
Investments Investments (Realiz
Investments Investments (Realized GL info) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Debt Securities, Available-for-sale, Realized Gain (Loss) [Abstract] | ||||
Gross realized investment gains | $ 4 | $ 5 | $ 14 | $ 38 |
Gross realized investment losses | 0 | (2) | 0 | (4) |
Total | $ 4 | $ 3 | $ 14 | $ 34 |
Investments (AFS contractual ma
Investments (AFS contractual maturity) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Amortized Cost | ||
Due within one year | $ 1,320 | |
Due after one year through five years | 4,853 | |
Due after five years through 10 years | 3,383 | |
Due after 10 years | 4,014 | |
Total having single maturity dates | 13,570 | |
Amortized cost | 20,928 | $ 20,765 |
Fair Value | ||
Due within one year | 1,337 | |
Due after one year through five years | 4,876 | |
Due after five years through 10 years | 3,358 | |
Due after 10 years | 4,685 | |
Total having single maturity dates | 14,256 | |
Total fair value | 21,472 | 22,155 |
Residential mortgage backed securities [Member] | ||
Amortized Cost | ||
Without single maturity dates | 2,959 | |
Amortized cost | 2,959 | 2,979 |
Fair Value | ||
Without single maturity dates | 2,907 | |
Total fair value | 2,907 | 3,011 |
Commercial mortgage backed securities [Member] | ||
Amortized Cost | ||
Without single maturity dates | 3,748 | |
Amortized cost | 3,748 | 3,554 |
Fair Value | ||
Without single maturity dates | 3,638 | |
Total fair value | 3,638 | 3,569 |
Asset backed securities [Member] | ||
Amortized Cost | ||
Without single maturity dates | 651 | |
Amortized cost | 651 | 700 |
Fair Value | ||
Without single maturity dates | 671 | |
Total fair value | $ 671 | $ 728 |
Investments (Net Inv Inc summar
Investments (Net Inv Inc summary) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Net Investment Income [Line Items] | ||||
Gross investment income | $ 249 | $ 267 | $ 775 | $ 816 |
Less: investment expenses | 6 | 6 | 18 | 19 |
Total | 243 | 261 | 757 | 797 |
Fixed maturities [Member] | ||||
Net Investment Income [Line Items] | ||||
Gross investment income | 227 | 237 | 686 | 717 |
Mortgage loans [Member] | ||||
Net Investment Income [Line Items] | ||||
Gross investment income | 29 | 34 | 88 | 103 |
Other investments [Member] | ||||
Net Investment Income [Line Items] | ||||
Gross investment income | $ (7) | $ (4) | $ 1 | $ (4) |
Financing Receivables (Allowanc
Financing Receivables (Allowance for Loan Losses) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Rollforward of the allowance for loan losses | |||||
Beginning balance | $ 22 | $ 25 | |||
Charge-offs | (2) | 0 | |||
Ending balance | $ 20 | $ 25 | 20 | 25 | |
Individually evaluated for impairment | 0 | 3 | 0 | 3 | |
Collectively evaluated for impairment | 20 | 22 | 20 | 22 | |
Recorded investment in financing receivables by impairment method | |||||
Individually evaluated for impairment | 14 | 14 | $ 17 | ||
Collectively evaluated for impairment | 2,937 | 2,937 | 3,015 | ||
Total | 2,951 | 2,951 | 3,032 | ||
Recorded investment in financing receivables individually evaluated for impairment with no related allowance for loan losses | 8 | 8 | 17 | ||
Syndicated loans [Member] | |||||
Recorded investment in financing receivables by impairment method | |||||
Total | 394 | 394 | $ 397 | ||
Loans purchased | 21 | 14 | 109 | 121 | |
Loans sold | $ 13 | $ 9 | $ 43 | $ 12 |
Financing Receivables (Credit Q
Financing Receivables (Credit Quality Information Text) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Credit quality information [Line Items] | ||
Total recorded investment, gross | $ 2,951 | $ 3,032 |
90 days or more past due [Member] | ||
Credit quality information [Line Items] | ||
Nonperforming loans | $ 0 | $ 5 |
Commercial mortgage loans [Member] | ||
Credit quality information [Line Items] | ||
Percent of commercial mortgage loans with highest risk rating | 0.00% | 0.00% |
Total recorded investment, gross | $ 2,556 | $ 2,635 |
Syndicated loans [Member] | ||
Credit quality information [Line Items] | ||
Total recorded investment, gross | 394 | 397 |
Syndicated loans [Member] | 90 days or more past due [Member] | ||
Credit quality information [Line Items] | ||
Nonperforming loans | $ 0 | $ 5 |
Financing Receivables (Credit_2
Financing Receivables (Credit Quality Information Tables) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 |
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | $ 2,951 | $ 3,032 | ||
Less: allowance for loan losses | 20 | 22 | $ 25 | $ 25 |
Commercial mortgage loans [Member] | ||||
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | 2,556 | 2,635 | ||
Less: allowance for loan losses | 16 | 16 | ||
Total loans, net | $ 2,540 | $ 2,619 | ||
Percentage of commercial mortgage loans | 100.00% | 100.00% | ||
Commercial mortgage loans [Member] | Retail [Member] | ||||
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | $ 856 | $ 893 | ||
Percentage of commercial mortgage loans | 33.00% | 34.00% | ||
Commercial mortgage loans [Member] | Office [Member] | ||||
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | $ 419 | $ 470 | ||
Percentage of commercial mortgage loans | 16.00% | 18.00% | ||
Commercial mortgage loans [Member] | Apartments [Member] | ||||
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | $ 565 | $ 536 | ||
Percentage of commercial mortgage loans | 22.00% | 20.00% | ||
Commercial mortgage loans [Member] | Industrial [Member] | ||||
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | $ 424 | $ 451 | ||
Percentage of commercial mortgage loans | 17.00% | 17.00% | ||
Commercial mortgage loans [Member] | Mixed use [Member] | ||||
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | $ 38 | $ 38 | ||
Percentage of commercial mortgage loans | 2.00% | 1.00% | ||
Commercial mortgage loans [Member] | Hotel [Member] | ||||
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | $ 43 | $ 39 | ||
Percentage of commercial mortgage loans | 2.00% | 2.00% | ||
Commercial mortgage loans [Member] | Other [Member] | ||||
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | $ 211 | $ 208 | ||
Percentage of commercial mortgage loans | 8.00% | 8.00% | ||
Commercial mortgage loans [Member] | South Atlantic [Member] | ||||
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | $ 703 | $ 735 | ||
Percentage of commercial mortgage loans | 27.00% | 28.00% | ||
Commercial mortgage loans [Member] | Pacific [Member] | ||||
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | $ 761 | $ 771 | ||
Percentage of commercial mortgage loans | 30.00% | 29.00% | ||
Commercial mortgage loans [Member] | Mountain [Member] | ||||
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | $ 228 | $ 242 | ||
Percentage of commercial mortgage loans | 9.00% | 9.00% | ||
Commercial mortgage loans [Member] | West North Central [Member] | ||||
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | $ 211 | $ 223 | ||
Percentage of commercial mortgage loans | 8.00% | 8.00% | ||
Commercial mortgage loans [Member] | East North Central [Member] | ||||
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | $ 204 | $ 209 | ||
Percentage of commercial mortgage loans | 8.00% | 8.00% | ||
Commercial mortgage loans [Member] | Middle Atlantic [Member] | ||||
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | $ 172 | $ 179 | ||
Percentage of commercial mortgage loans | 7.00% | 7.00% | ||
Commercial mortgage loans [Member] | West South Central [Member] | ||||
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | $ 132 | $ 125 | ||
Percentage of commercial mortgage loans | 5.00% | 5.00% | ||
Commercial mortgage loans [Member] | New England [Member] | ||||
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | $ 55 | $ 67 | ||
Percentage of commercial mortgage loans | 2.00% | 3.00% | ||
Commercial mortgage loans [Member] | East South Central [Member] | ||||
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | $ 90 | $ 84 | ||
Percentage of commercial mortgage loans | 4.00% | 3.00% |
Financing Receivables (Troubled
Financing Receivables (Troubled Debt Restructurings) (Details) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Receivables [Abstract] | ||
Commitments to lend additional funds to borrowers for restructured loans | $ 0 | $ 0 |
Deferred Acquisition Costs an_3
Deferred Acquisition Costs and Deferred Sales Inducement Costs (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Balances of and changes in DAC | ||
Balance at the beginning of the period | $ 2,639 | $ 2,611 |
Capitalization of acquisition costs | 192 | 173 |
Amortization, excluding the impact of valuation assumptions review | (166) | (154) |
Amortization, impact of valuation assumptions review | 33 | 12 |
Impact of change in net unrealized (gains) losses on securities | 95 | (18) |
Balance at the end of the period | 2,793 | 2,624 |
Balances of and changes in DSIC | ||
Balance at the beginning of the period | 273 | 301 |
Capitalization of sales inducement costs | 2 | 3 |
Amortization, excluding the impact of valuation assumptions review | (26) | (27) |
Amortization, impact of valuation assumptions review | 0 | (1) |
Impact of change in net unrealized (gains) losses on securities | 16 | 1 |
Balance at the end of the period | $ 265 | $ 277 |
Policyholder Account Balances_3
Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities (Balances by product) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 | ||
Policyholder account balances | $ 20,021 | $ 20,251 | ||
Future policy benefits | 8,305 | 8,750 | ||
Policy claims and other policyholders’ funds | 150 | 177 | ||
Total policyholder account balances, future policy benefits and claims | 28,476 | 29,178 | ||
Fixed annuities [Member] | ||||
Policyholder account balances | [1] | 9,499 | 9,934 | |
Variable annuity fixed sub-accounts [Member] | ||||
Policyholder account balances | 5,127 | 5,166 | ||
VUL/UL insurance [Member] | ||||
Policyholder account balances | 3,057 | 3,047 | ||
IUL [Member] | ||||
Policyholder account balances | 1,649 | 1,384 | ||
Other life Insurance [Member] | ||||
Policyholder account balances | 689 | 720 | ||
Variable annuity GMWB [Member] | ||||
Future policy benefits | (125) | [2] | 463 | |
Variable annuity GMAB [Member] | ||||
Future policy benefits | [3] | (83) | (80) | |
Other annuity liabilities [Member] | ||||
Future policy benefits | 26 | 78 | ||
Fixed annuity life contingent liabilities [Member] | ||||
Future policy benefits | 1,464 | 1,484 | ||
Life and disability income insurance [Member] | ||||
Future policy benefits | 1,219 | 1,221 | ||
Long term care insurance [Member] | ||||
Future policy benefits | 4,997 | 4,896 | ||
VUL/UL and other life insurance additional liabilities [Member] | ||||
Future policy benefits | $ 807 | $ 688 | ||
[1] | Includes fixed deferred annuities, non-life contingent fixed payout annuities and indexed annuity host contracts. | |||
[2] | Includes the fair value of GMWB embedded derivatives that was a net asset as of September 30, 2018 | |||
[3] | Includes the fair value of GMAB embedded derivatives that was a net asset as of both September 30, 2018 and December 31, 2017 |
Policyholder Account Balances_4
Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities (Separate Account Liabilities) (Details 2) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Separate Accounts Disclosure [Abstract] | ||
Variable annuity | $ 74,317 | $ 75,174 |
VUL insurance | 7,338 | 7,352 |
Other insurance | 33 | 34 |
Total | $ 81,688 | $ 82,560 |
Variable Annuity and Insuranc_3
Variable Annuity and Insurance Guarantees (VA Guarantees Details) (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | ||
GMDB [Member] | |||
Variable Annuity Guarantees by Benefit Type | |||
Total contract value | [1] | $ 78,695 | $ 79,498 |
Contract value in separate accounts | [1] | 73,609 | 74,378 |
Net amount at risk | [1] | $ 106 | $ 83 |
Weighted average attained age | [1] | 67 years | 66 years |
GMDB [Member] | Return of premium [Member] | |||
Variable Annuity Guarantees by Benefit Type | |||
Total contract value | [1] | $ 61,379 | $ 61,418 |
Contract value in separate accounts | [1] | 59,441 | 59,461 |
Net amount at risk | [1] | $ 12 | $ 9 |
Weighted average attained age | [1] | 67 years | 66 years |
GMDB [Member] | Five/six-year reset [Member] | |||
Variable Annuity Guarantees by Benefit Type | |||
Total contract value | [1] | $ 8,504 | $ 8,870 |
Contract value in separate accounts | [1] | 5,781 | 6,149 |
Net amount at risk | [1] | $ 11 | $ 12 |
Weighted average attained age | [1] | 66 years | 66 years |
GMDB [Member] | One-year ratchet [Member] | |||
Variable Annuity Guarantees by Benefit Type | |||
Total contract value | [1] | $ 6,215 | $ 6,548 |
Contract value in separate accounts | [1] | 5,864 | 6,187 |
Net amount at risk | [1] | $ 19 | $ 11 |
Weighted average attained age | [1] | 69 years | 69 years |
GMDB [Member] | Five-year ratchet [Member] | |||
Variable Annuity Guarantees by Benefit Type | |||
Total contract value | [1] | $ 1,471 | $ 1,563 |
Contract value in separate accounts | [1] | 1,416 | 1,506 |
Net amount at risk | [1] | $ 1 | $ 1 |
Weighted average attained age | [1] | 65 years | 65 years |
GMDB [Member] | Other [Member] | |||
Variable Annuity Guarantees by Benefit Type | |||
Total contract value | [1] | $ 1,126 | $ 1,099 |
Contract value in separate accounts | [1] | 1,107 | 1,075 |
Net amount at risk | [1] | $ 63 | $ 50 |
Weighted average attained age | [1] | 72 years | 72 years |
GGU death benefit [Member] | |||
Variable Annuity Guarantees by Benefit Type | |||
Total contract value | [1] | $ 1,105 | $ 1,118 |
Contract value in separate accounts | [1] | 1,055 | 1,067 |
Net amount at risk | [1] | $ 129 | $ 133 |
Weighted average attained age | [1] | 70 years | 70 years |
GMIB [Member] | |||
Variable Annuity Guarantees by Benefit Type | |||
Total contract value | [1] | $ 208 | $ 233 |
Contract value in separate accounts | [1] | 192 | 216 |
Net amount at risk | [1] | $ 7 | $ 7 |
Weighted average attained age | [1] | 69 years | 69 years |
GMWB [Member] | |||
Variable Annuity Guarantees by Benefit Type | |||
Total contract value | [1] | $ 47,123 | $ 46,883 |
Contract value in separate accounts | [1] | 47,021 | 46,759 |
Net amount at risk | [1] | $ 218 | $ 130 |
Weighted average attained age | [1] | 68 years | 67 years |
GMWB [Member] | GMWB standard benefit [Member] | |||
Variable Annuity Guarantees by Benefit Type | |||
Total contract value | [1] | $ 2,252 | $ 2,508 |
Contract value in separate accounts | [1] | 2,245 | 2,500 |
Net amount at risk | [1] | $ 1 | $ 1 |
Weighted average attained age | [1] | 72 years | 71 years |
GMWB [Member] | GMWB for life [Member] | |||
Variable Annuity Guarantees by Benefit Type | |||
Total contract value | [1] | $ 44,871 | $ 44,375 |
Contract value in separate accounts | [1] | 44,776 | 44,259 |
Net amount at risk | [1] | $ 217 | $ 129 |
Weighted average attained age | [1] | 68 years | 67 years |
GMAB [Member] | |||
Variable Annuity Guarantees by Benefit Type | |||
Total contract value | [1] | $ 2,762 | $ 3,086 |
Contract value in separate accounts | [1] | 2,758 | 3,083 |
Net amount at risk | [1] | $ 0 | $ 0 |
Weighted average attained age | [1] | 59 years | 59 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 Insuranc_4
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, 2018 | Dec. 31, 2017 | |
Insurance Guarantees by Benefit Type | ||
Net amount at risk | $ 6,499 | $ 6,460 |
Weighted average attained age | 66 years | 65 years |
Variable Annuity and Insuranc_5
Variable Annuity and Insurance Guarantees (Liability Rollforward) (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | ||
GMDB & GGU [Member] | |||
Changes in additional liabilities for variable annuity and insurance guarantees | |||
Balance at the beginning of the period | $ 17 | $ 16 | |
Incurred claims | 5 | 3 | |
Paid claims | (4) | (3) | |
Balance at the end of the period | 18 | 16 | |
GMIB [Member] | |||
Changes in additional liabilities for variable annuity and insurance guarantees | |||
Balance at the beginning of the period | 6 | 8 | |
Paid claims | 0 | (1) | |
Balance at the end of the period | 6 | 7 | |
GMWB [Member] | |||
Changes in additional liabilities for variable annuity and insurance guarantees | |||
Balance at the beginning of the period | 463 | 1,017 | |
Incurred claims | [1] | (588) | (478) |
Balance at the end of the period | (125) | 539 | |
GMAB [Member] | |||
Changes in additional liabilities for variable annuity and insurance guarantees | |||
Balance at the beginning of the period | (80) | (24) | |
Incurred claims | [1] | (3) | (49) |
Balance at the end of the period | (83) | (73) | |
UL [Member] | |||
Changes in additional liabilities for variable annuity and insurance guarantees | |||
Balance at the beginning of the period | 489 | 434 | |
Incurred claims | 171 | 59 | |
Paid claims | (19) | (22) | |
Balance at the end of the period | $ 641 | $ 471 | |
[1] | The incurred claims for GMWB and GMAB include the change in the fair value of the liabilities (contra liabilities) less paid claims. |
Variable Annuity and Insuranc_6
Variable Annuity and Insurance Guarantees (Separate Account Balances by Type) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Mutual funds | ||
Variable Annuity and Insurance Guarantees | ||
Total mutual funds | $ 73,873 | $ 74,676 |
Equity [Member] | ||
Variable Annuity and Insurance Guarantees | ||
Total mutual funds | 44,968 | 46,038 |
Bond [Member] | ||
Variable Annuity and Insurance Guarantees | ||
Total mutual funds | 22,846 | 23,529 |
Other [Member] | ||
Variable Annuity and Insurance Guarantees | ||
Total mutual funds | $ 6,059 | $ 5,109 |
Short-term Borrowings (Details)
Short-term Borrowings (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Borrowings | ||
Amount of the liability including accrued interest | $ 201 | $ 200 |
Repurchase agreements [Member] | ||
Borrowings | ||
Amount of the liability including accrued interest | $ 50 | $ 50 |
Remaining maturity of outstanding amount of short term borrowings | 3 months | 1 month |
Weighted average annualized interest rate | 2.30% | 1.40% |
Federal Home Loan Bank [Member] | ||
Borrowings | ||
Amount of the liability including accrued interest | $ 151 | $ 150 |
Remaining maturity of outstanding amount of short term borrowings | 3 months | 4 months |
Weighted average annualized interest rate | 2.30% | 1.50% |
Residential mortgage backed securities [Member] | Repurchase agreements [Member] | ||
Borrowings | ||
Securities pledged as collateral | $ 53 | $ 43 |
Commercial mortgage backed securities [Member] | Repurchase agreements [Member] | ||
Borrowings | ||
Securities pledged as collateral | 0 | 8 |
Commercial mortgage backed securities [Member] | Federal Home Loan Bank [Member] | ||
Borrowings | ||
Securities pledged as collateral | $ 788 | $ 750 |
Fair Values of Assets and Lia_3
Fair Values of Assets and Liabilities (Recurring) (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2018 | Dec. 31, 2017 | ||||
Assets | |||||
Available-for-sale securities: fixed maturities | $ 21,472 | $ 22,155 | |||
Separate account assets measured at NAV | 81,688 | 82,560 | |||
Liabilities | |||||
Individual contracts in a liability position | [1] | 3,660 | 3,668 | ||
Individual contracts in an asset position | [2] | 3,290 | 3,483 | ||
Cumulative increase (decrease) in embedded derivatives due to nonperformance | (370) | (399) | |||
GMWB and GMAB embedded derivatives [Member] | |||||
Liabilities | |||||
Individual contracts in a liability position | 178 | 443 | |||
Individual contracts in an asset position | 864 | 492 | |||
Recurring basis [Member] | |||||
Assets | |||||
Available-for-sale securities: fixed maturities | 21,472 | 22,155 | |||
Equity securities | 1 | ||||
Cash equivalents | 635 | 1,030 | |||
Other assets | 3,290 | 3,483 | |||
Separate account assets measured at NAV | [3] | 81,688 | 82,560 | ||
Total assets at fair value | 107,086 | 109,228 | |||
Liabilities | |||||
Policyholder account balances, future policy benefits and claims | 13 | [4] | 557 | [5] | |
Other liabilities | 3,647 | 3,111 | |||
Total liabilities at fair value | 3,660 | 3,668 | |||
Recurring basis [Member] | Interest rate derivative contracts [Member] | |||||
Assets | |||||
Other assets | 609 | 1,081 | |||
Liabilities | |||||
Other liabilities | 602 | 415 | |||
Recurring basis [Member] | Equity derivative contracts [Member] | |||||
Assets | |||||
Other assets | 2,631 | 2,367 | |||
Liabilities | |||||
Other liabilities | 3,018 | 2,671 | |||
Recurring basis [Member] | Foreign exchange derivatives contracts [Member] | |||||
Assets | |||||
Other assets | 43 | 35 | |||
Liabilities | |||||
Other liabilities | 27 | 23 | |||
Recurring basis [Member] | Credit derivative contracts [Member] | |||||
Assets | |||||
Other assets | 7 | ||||
Liabilities | |||||
Other liabilities | 2 | ||||
Recurring basis [Member] | Indexed annuity embedded derivatives [Member] | |||||
Liabilities | |||||
Policyholder account balances, future policy benefits and claims | 15 | 5 | |||
Recurring basis [Member] | IUL embedded derivatives [Member] | |||||
Liabilities | |||||
Policyholder account balances, future policy benefits and claims | 684 | 601 | |||
Recurring basis [Member] | GMWB and GMAB embedded derivatives [Member] | |||||
Liabilities | |||||
Policyholder account balances, future policy benefits and claims | (686) | [6] | (49) | [7] | |
Recurring basis [Member] | Corporate debt securities [Member] | |||||
Assets | |||||
Available-for-sale securities: fixed maturities | 12,679 | 13,233 | |||
Recurring basis [Member] | Residential mortgage backed securities [Member] | |||||
Assets | |||||
Available-for-sale securities: fixed maturities | 2,907 | 3,011 | |||
Recurring basis [Member] | Commercial mortgage backed securities [Member] | |||||
Assets | |||||
Available-for-sale securities: fixed maturities | 3,638 | 3,569 | |||
Recurring basis [Member] | State and municipal obligations [Member] | |||||
Assets | |||||
Available-for-sale securities: fixed maturities | 1,278 | 1,314 | |||
Recurring basis [Member] | Asset backed securities [Member] | |||||
Assets | |||||
Available-for-sale securities: fixed maturities | 671 | 728 | |||
Recurring basis [Member] | Foreign government bonds and obligations [Member] | |||||
Assets | |||||
Available-for-sale securities: fixed maturities | 298 | 299 | |||
Recurring basis [Member] | U.S. government and agencies obligations [Member] | |||||
Assets | |||||
Available-for-sale securities: fixed maturities | 1 | 1 | |||
Recurring basis [Member] | Level 1 [Member] | |||||
Assets | |||||
Available-for-sale securities: fixed maturities | 1 | 1 | |||
Equity securities | 1 | ||||
Other assets | 87 | 63 | |||
Total assets at fair value | 89 | 64 | |||
Liabilities | |||||
Other liabilities | 14 | 6 | |||
Total liabilities at fair value | 14 | 6 | |||
Recurring basis [Member] | Level 1 [Member] | Interest rate derivative contracts [Member] | |||||
Liabilities | |||||
Other liabilities | 1 | 1 | |||
Recurring basis [Member] | Level 1 [Member] | Equity derivative contracts [Member] | |||||
Assets | |||||
Other assets | 87 | 62 | |||
Liabilities | |||||
Other liabilities | 13 | 5 | |||
Recurring basis [Member] | Level 1 [Member] | Foreign exchange derivatives contracts [Member] | |||||
Assets | |||||
Other assets | 1 | ||||
Recurring basis [Member] | Level 1 [Member] | U.S. government and agencies obligations [Member] | |||||
Assets | |||||
Available-for-sale securities: fixed maturities | 1 | 1 | |||
Recurring basis [Member] | Level 2 [Member] | |||||
Assets | |||||
Available-for-sale securities: fixed maturities | 20,456 | 20,995 | |||
Cash equivalents | 635 | 1,030 | |||
Other assets | 3,203 | 3,420 | |||
Total assets at fair value | 24,294 | 25,445 | |||
Liabilities | |||||
Policyholder account balances, future policy benefits and claims | 4 | 5 | |||
Other liabilities | 3,633 | 3,105 | |||
Total liabilities at fair value | 3,637 | 3,110 | |||
Recurring basis [Member] | Level 2 [Member] | Interest rate derivative contracts [Member] | |||||
Assets | |||||
Other assets | 609 | 1,081 | |||
Liabilities | |||||
Other liabilities | 601 | 414 | |||
Recurring basis [Member] | Level 2 [Member] | Equity derivative contracts [Member] | |||||
Assets | |||||
Other assets | 2,544 | 2,305 | |||
Liabilities | |||||
Other liabilities | 3,005 | 2,666 | |||
Recurring basis [Member] | Level 2 [Member] | Foreign exchange derivatives contracts [Member] | |||||
Assets | |||||
Other assets | 43 | 34 | |||
Liabilities | |||||
Other liabilities | 27 | 23 | |||
Recurring basis [Member] | Level 2 [Member] | Credit derivative contracts [Member] | |||||
Assets | |||||
Other assets | 7 | ||||
Liabilities | |||||
Other liabilities | 2 | ||||
Recurring basis [Member] | Level 2 [Member] | Indexed annuity embedded derivatives [Member] | |||||
Liabilities | |||||
Policyholder account balances, future policy benefits and claims | 4 | 5 | |||
Recurring basis [Member] | Level 2 [Member] | Corporate debt securities [Member] | |||||
Assets | |||||
Available-for-sale securities: fixed maturities | 11,729 | 12,161 | |||
Recurring basis [Member] | Level 2 [Member] | Residential mortgage backed securities [Member] | |||||
Assets | |||||
Available-for-sale securities: fixed maturities | 2,842 | 2,924 | |||
Recurring basis [Member] | Level 2 [Member] | Commercial mortgage backed securities [Member] | |||||
Assets | |||||
Available-for-sale securities: fixed maturities | 3,638 | 3,569 | |||
Recurring basis [Member] | Level 2 [Member] | State and municipal obligations [Member] | |||||
Assets | |||||
Available-for-sale securities: fixed maturities | 1,278 | 1,314 | |||
Recurring basis [Member] | Level 2 [Member] | Asset backed securities [Member] | |||||
Assets | |||||
Available-for-sale securities: fixed maturities | 671 | 728 | |||
Recurring basis [Member] | Level 2 [Member] | Foreign government bonds and obligations [Member] | |||||
Assets | |||||
Available-for-sale securities: fixed maturities | 298 | 299 | |||
Recurring basis [Member] | Level 3 [Member] | |||||
Assets | |||||
Available-for-sale securities: fixed maturities | 1,015 | 1,159 | |||
Total assets at fair value | 1,015 | 1,159 | |||
Liabilities | |||||
Policyholder account balances, future policy benefits and claims | 9 | 552 | |||
Total liabilities at fair value | 9 | 552 | |||
Recurring basis [Member] | Level 3 [Member] | Indexed annuity embedded derivatives [Member] | |||||
Liabilities | |||||
Policyholder account balances, future policy benefits and claims | 11 | ||||
Recurring basis [Member] | Level 3 [Member] | IUL embedded derivatives [Member] | |||||
Liabilities | |||||
Policyholder account balances, future policy benefits and claims | 684 | 601 | |||
Recurring basis [Member] | Level 3 [Member] | GMWB and GMAB embedded derivatives [Member] | |||||
Liabilities | |||||
Policyholder account balances, future policy benefits and claims | (686) | (49) | |||
Recurring basis [Member] | Level 3 [Member] | Corporate debt securities [Member] | |||||
Assets | |||||
Available-for-sale securities: fixed maturities | 950 | 1,072 | |||
Recurring basis [Member] | Level 3 [Member] | Residential mortgage backed securities [Member] | |||||
Assets | |||||
Available-for-sale securities: fixed maturities | $ 65 | $ 87 | |||
[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 indexed annuity 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 financial instruments 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. | ||||
[4] | The Company’s adjustment for nonperformance risk resulted in a $(370) million cumulative increase (decrease) to the embedded derivatives as of September 30, 2018 | ||||
[5] | The Company’s adjustment for nonperformance risk resulted in a $(399) million cumulative increase (decrease) to the embedded derivatives as of December 31, 2017 | ||||
[6] | The fair value of the GMWB and GMAB embedded derivatives included $178 million of individual contracts in a liability position and $864 million of individual contracts in an asset position as of September 30, 2018 | ||||
[7] | The fair value of the GMWB and GMAB embedded derivatives included $443 million of individual contracts in a liability position and $492 million of individual contracts in an asset position as of December 31, 2017 |
Fair Values of Assets and Lia_4
Fair Values of Assets and Liabilities (Level 3 rollforwards-Assets) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | ||
Summary of changes in Level 3 assets measured at fair value on a recurring basis [Rollforward] | |||||
Transfers from Level 1 to Level 2, assets | $ 0 | $ 0 | $ 0 | $ 0 | |
Transfers from Level 2 to Level 1, assets | 0 | 0 | 0 | 0 | |
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 | 998 | 1,190 | 1,072 | 1,157 | |
Total gains (losses) included in net income | 1 | (1) | 1 | ||
Total gains (losses) included in other comprehensive income | (2) | (1) | (28) | 1 | |
Purchases | 38 | 15 | 96 | ||
Settlements | (46) | (82) | (108) | (109) | |
Balance, at the end of the period | 950 | 1,146 | 950 | 1,146 | |
Changes in unrealized gains (losses) relating to assets held at the end of the period | 1 | (1) | 1 | ||
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 | 69 | 89 | 87 | 115 | |
Total gains (losses) included in other comprehensive income | 1 | 1 | 1 | ||
Purchases | 67 | ||||
Settlements | (1) | (1) | (5) | (5) | |
Transfers out of Level 3 | (3) | (18) | (89) | ||
Balance, at the end of the period | 65 | 89 | 65 | 89 | |
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 | 12 | 0 | 0 | 0 | |
Purchases | 35 | 12 | 35 | ||
Transfers out of Level 3 | (12) | (12) | |||
Balance, at the end of the period | 0 | 35 | 0 | 35 | |
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 | 10 | 11 | 0 | 13 | |
Purchases | 10 | 49 | |||
Settlements | (13) | ||||
Transfers into Level 3 | 11 | ||||
Transfers out of Level 3 | (10) | (11) | (10) | (60) | |
Balance, at the end of the period | 0 | 0 | 0 | 0 | |
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 | 1,089 | 1,290 | 1,159 | 1,285 | |
Total gains (losses) included in net income | [1] | 1 | (1) | 1 | |
Total gains (losses) included in other comprehensive income | (2) | 0 | (27) | 2 | |
Purchases | 73 | 37 | 247 | ||
Settlements | (47) | (83) | (113) | (127) | |
Transfers into Level 3 | 11 | ||||
Transfers out of Level 3 | (25) | (11) | (40) | (149) | |
Balance, at the end of the period | 1,015 | 1,270 | 1,015 | 1,270 | |
Changes in unrealized gains (losses) relating to assets held at the end of the period | [1] | 1 | (1) | 1 | |
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) | (3) | ||
Purchases | 3 | ||||
Balance, at the end of the period | 0 | 0 | |||
Changes in unrealized gains (losses) relating to assets held at the end of the period | [2] | $ (2) | $ (3) | ||
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 | 0 | 0 | |||
Transfers into Level 3 | 1 | 5 | |||
Transfers out of Level 3 | (4) | ||||
Balance, at the end of the period | $ 1 | $ 1 | |||
[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 Lia_5
Fair Values of Assets and Liabilities (Level 3 rollforwards-Liabilities) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | ||
Summary of changes in Level 3 liabilities measured at fair value on a recurring basis [Rollforward] | |||||
Net increase (decrease) to earnings from embedded derivative liability | $ (58) | $ (37) | $ (10) | $ (91) | |
Transfers from Level 1 to Level 2, liabilities | 0 | 0 | 0 | 0 | |
Transfers from Level 2 to Level 1, liabilities | 0 | 0 | 0 | 0 | |
Indexed annuity 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 | 8 | 0 | |||
Issues | 3 | 11 | |||
Balance at the end of the period | 11 | 11 | |||
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 | 620 | 527 | 601 | 464 | |
Total (gains) losses included in net income | [1] | 55 | 35 | 56 | 75 |
Issues | 24 | 26 | 65 | 70 | |
Settlements | (15) | (11) | (38) | (32) | |
Balance at the end of the period | 684 | 577 | 684 | 577 | |
Changes in unrealized (gains) losses relating to liabilities held at the end of the period | [1] | 55 | 35 | 56 | 75 |
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 | (425) | 272 | (49) | 614 | |
Total (gains) losses included in net income | [2] | (344) | (309) | (875) | (798) |
Issues | 90 | 84 | 257 | 238 | |
Settlements | (7) | (2) | (19) | (9) | |
Balance at the end of the period | (686) | 45 | (686) | 45 | |
Changes in unrealized (gains) losses relating to liabilities held at the end of the period | [2] | (347) | (307) | (868) | (771) |
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 | 203 | 799 | 552 | 1,078 | |
Total (gains) losses included in net income | (289) | (274) | (819) | (723) | |
Issues | 117 | 110 | 333 | 308 | |
Settlements | (22) | (13) | (57) | (41) | |
Balance at the end of the period | 9 | 622 | 9 | 622 | |
Changes in unrealized (gains) losses relating to liabilities held at the end of the period | $ (292) | $ (272) | $ (812) | $ (696) | |
[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 Lia_6
Fair Values of Assets and Liabilities (Unobservable inputs) (Details) $ in Millions | Sep. 30, 2018USD ($) | Dec. 31, 2017USD ($) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Corporate debt securities (private placements), fair value | $ 21,472 | $ 22,155 | |
Corporate debt securities [Member] | Discounted cash flow [Member] | Level 3 [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Corporate debt securities (private placements), fair value | $ 949 | $ 1,070 | |
Corporate debt securities [Member] | Minimum [Member] | Discounted cash flow [Member] | Level 3 [Member] | Yield/spread to U.S. Treasuries [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Corporate debt securities (private placements), measurement inputs | 0.007 | 0.007 | |
Corporate debt securities [Member] | Maximum [Member] | Discounted cash flow [Member] | Level 3 [Member] | Yield/spread to U.S. Treasuries [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Corporate debt securities (private placements), measurement inputs | 0.024 | 0.023 | |
Corporate debt securities [Member] | Weighted average [Member] | Discounted cash flow [Member] | Level 3 [Member] | Yield/spread to U.S. Treasuries [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Corporate debt securities (private placements), measurement inputs | 0.012 | 0.011 | |
IUL embedded derivatives [Member] | Discounted cash flow [Member] | Level 3 [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Embedded derivatives, fair value | $ 684 | $ 601 | |
IUL embedded derivatives [Member] | Discounted cash flow [Member] | Level 3 [Member] | Nonperformance risk [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Embedded derivative, measurement inputs | [1] | 0.0083 | 0.0071 |
Indexed annuity embedded derivatives [Member] | Discounted cash flow [Member] | Level 3 [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Embedded derivatives, fair value | $ 11 | ||
Indexed annuity embedded derivatives [Member] | Discounted cash flow [Member] | Level 3 [Member] | Nonperformance risk [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Embedded derivative, measurement inputs | [1] | 0.0083 | |
Indexed annuity embedded derivatives [Member] | Minimum [Member] | Discounted cash flow [Member] | Level 3 [Member] | Surrender rate [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Embedded derivative, measurement inputs | 0 | ||
Indexed annuity embedded derivatives [Member] | Maximum [Member] | Discounted cash flow [Member] | Level 3 [Member] | Surrender rate [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Embedded derivative, measurement inputs | 0.500 | ||
GMWB and GMAB embedded derivatives [Member] | Discounted cash flow [Member] | Level 3 [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Embedded derivatives, fair value | $ (686) | $ (49) | |
GMWB and GMAB embedded derivatives [Member] | Discounted cash flow [Member] | Level 3 [Member] | Nonperformance risk [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Embedded derivative, measurement inputs | [1] | 0.0083 | 0.0071 |
GMWB and GMAB embedded derivatives [Member] | Minimum [Member] | Discounted cash flow [Member] | Level 3 [Member] | Surrender rate [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Embedded derivative, measurement inputs | 0.001 | 0.001 | |
GMWB and GMAB embedded derivatives [Member] | Minimum [Member] | Discounted cash flow [Member] | Level 3 [Member] | Utilization of guaranteed withdrawals [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Embedded derivative, measurement inputs | [2] | 0 | 0 |
GMWB and GMAB embedded derivatives [Member] | Minimum [Member] | Discounted cash flow [Member] | Level 3 [Member] | Market volatility [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Embedded derivative, measurement inputs | [3] | 0.037 | 0.037 |
GMWB and GMAB embedded derivatives [Member] | Maximum [Member] | Discounted cash flow [Member] | Level 3 [Member] | Surrender rate [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Embedded derivative, measurement inputs | 0.734 | 0.747 | |
GMWB and GMAB embedded derivatives [Member] | Maximum [Member] | Discounted cash flow [Member] | Level 3 [Member] | Utilization of guaranteed withdrawals [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Embedded derivative, measurement inputs | [2] | 0.360 | 0.420 |
GMWB and GMAB embedded derivatives [Member] | Maximum [Member] | Discounted cash flow [Member] | Level 3 [Member] | Market volatility [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Embedded derivative, measurement inputs | [3] | 0.155 | 0.161 |
[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 Lia_7
Fair Values of Assets and Liabilities Fair Value of Assets & Liabilities (Non-Recurring) (Details) - VIEs, not primary beneficiary [Member] - RiverSource Tax Advantaged Investments Inc [Member] - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Assets and liabilities measured at fair value | ||
Affordable housing partnership, amount | $ 364 | $ 408 |
Nonrecurring basis [Member] | Level 3 [Member] | ||
Assets and liabilities measured at fair value | ||
Affordable housing partnership, amount | $ 132 | $ 166 |
Fair Values of Assets and Lia_8
Fair Values of Assets and Liabilities (Financial Instruments not at FV) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 | |
Financial Assets | |||
Mortgage loans, net | $ 2,540 | $ 2,619 | |
Policy loans | 854 | 845 | |
Other investments | 848 | 900 | |
Financial Liabilities | |||
Policyholder account balances, future policy benefits and claims | 28,476 | 29,178 | |
Short-term borrowings | 201 | 200 | |
Other liabilities | 4,702 | 4,674 | |
Separate account liabilities measured at NAV | 81,688 | 82,560 | |
Carrying value [Member] | |||
Financial Assets | |||
Mortgage loans, net | 2,540 | 2,619 | |
Policy loans | 854 | 845 | |
Other investments | 407 | 408 | |
Financial Liabilities | |||
Policyholder account balances, future policy benefits and claims | 9,786 | 10,246 | |
Short-term borrowings | 201 | 200 | |
Other liabilities | 75 | 123 | |
Separate account liabilities measured at NAV | 371 | 369 | |
Recurring basis [Member] | |||
Financial Assets | |||
Mortgage loans, net | 2,479 | 2,616 | |
Policy loans | 805 | 801 | |
Other investments | 409 | 409 | |
Financial Liabilities | |||
Policyholder account balances, future policy benefits and claims | 9,846 | 10,755 | |
Short-term borrowings | 201 | 200 | |
Other liabilities | 72 | 119 | |
Separate account liabilities measured at NAV | [1] | 371 | 369 |
Recurring basis [Member] | Level 2 [Member] | |||
Financial Assets | |||
Other investments | 384 | 373 | |
Financial Liabilities | |||
Short-term borrowings | 201 | 200 | |
Recurring basis [Member] | Level 3 [Member] | |||
Financial Assets | |||
Mortgage loans, net | 2,479 | 2,616 | |
Policy loans | 805 | 801 | |
Other investments | 25 | 36 | |
Financial Liabilities | |||
Policyholder account balances, future policy benefits and claims | 9,846 | 10,755 | |
Other liabilities | $ 72 | $ 119 | |
[1] | Amounts are comprised of certain financial instruments 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. |
Regulatory Requirements (Detail
Regulatory Requirements (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Insurance [Abstract] | ||
Permitted practice impact to statutory surplus | $ 377 | $ (3) |
Offsetting Assets and Liabili_3
Offsetting Assets and Liabilities (Assets) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 | |
Derivatives: | |||
Gross amounts of recognized assets | [1] | $ 3,290 | $ 3,483 |
Gross Amounts Not Offset in the Consolidated Balance Sheets | |||
Financial instruments | [2] | (2,860) | (2,615) |
Cash collateral | (396) | (736) | |
Securities collateral | (4) | (88) | |
Net amount | 30 | 44 | |
OTC derivatives [Member] | |||
Derivatives: | |||
Gross amounts of recognized assets | 3,263 | 3,440 | |
Gross Amounts Not Offset in the Consolidated Balance Sheets | |||
Financial instruments | [2] | (2,850) | (2,599) |
Cash collateral | (396) | (736) | |
Securities collateral | (4) | (88) | |
Net amount | 13 | 17 | |
OTC cleared derivatives [Member] | |||
Derivatives: | |||
Gross amounts of recognized assets | 10 | 21 | |
Gross Amounts Not Offset in the Consolidated Balance Sheets | |||
Financial instruments | [2] | (9) | (15) |
Net amount | 1 | 6 | |
Exchange-traded derivatives [Member] | |||
Derivatives: | |||
Gross amounts of recognized assets | 17 | 22 | |
Gross Amounts Not Offset in the Consolidated Balance Sheets | |||
Financial instruments | [2] | (1) | (1) |
Net amount | $ 16 | $ 21 | |
[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 Liabili_4
Offsetting Assets and Liabilities (Liabilities) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 | |
Derivatives | |||
Gross amounts of recognized liabilities | [1] | $ 3,660 | $ 3,668 |
Repurchase agreements | |||
Gross amounts of recognized liabilities | 51 | 50 | |
Gross Amounts Not Offset in the Consolidated Balance Sheets | |||
Securities collateral | (51) | (50) | |
Net amount | 0 | 0 | |
Total | |||
Gross amounts of recognized liabilities | 3,698 | 3,161 | |
Gross Amounts Not Offset in the Consolidated Balance Sheets | |||
Financial instruments | [2] | (2,860) | (2,615) |
Cash collateral | (44) | (1) | |
Securities collateral | (793) | (542) | |
Net amount | 1 | 3 | |
OTC derivatives [Member] | |||
Derivatives | |||
Gross amounts of recognized liabilities | 3,636 | 3,095 | |
Gross Amounts Not Offset in the Consolidated Balance Sheets | |||
Financial instruments | [2] | (2,850) | (2,599) |
Cash collateral | (44) | (1) | |
Securities collateral | (742) | (492) | |
Net amount | 0 | 3 | |
OTC cleared derivatives [Member] | |||
Derivatives | |||
Gross amounts of recognized liabilities | 9 | 15 | |
Gross Amounts Not Offset in the Consolidated Balance Sheets | |||
Financial instruments | [2] | (9) | (15) |
Net amount | 0 | 0 | |
Exchange-traded derivatives [Member] | |||
Derivatives | |||
Gross amounts of recognized liabilities | 2 | 1 | |
Gross Amounts Not Offset in the Consolidated Balance Sheets | |||
Financial instruments | [2] | (1) | (1) |
Net amount | 1 | 0 | |
Total derivatives [Member] | |||
Derivatives | |||
Gross amounts of recognized liabilities | 3,647 | 3,111 | |
Gross Amounts Not Offset in the Consolidated Balance Sheets | |||
Financial instruments | [2] | (2,860) | (2,615) |
Cash collateral | (44) | (1) | |
Securities collateral | (742) | (492) | |
Net amount | $ 1 | $ 3 | |
[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 indexed annuity 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 Activ_3
Derivatives and Hedging Activities (Balance Sheet) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 | |
Derivatives and Hedging Activities | |||
Notional amount | $ 118,439 | $ 126,600 | |
Gross fair value of assets | [1] | 3,290 | 3,483 |
Gross fair value of liabilities | [2] | 3,660 | 3,668 |
Fair value of investment securities received as collateral | 5 | 89 | |
Fair value of investment securities received as collateral that can be repledged | 5 | 89 | |
Fair value of investment securities received as collateral that were repledged | 0 | 0 | |
GMWB and GMAB embedded derivatives [Member] | |||
Derivatives and Hedging Activities | |||
Gross fair value of assets | 864 | 492 | |
Gross fair value of liabilities | 178 | 443 | |
Derivatives not designated as hedging instruments [Member] | |||
Derivatives and Hedging Activities | |||
Notional amount | 118,439 | 126,600 | |
Derivatives not designated as hedging instruments [Member] | Interest rate contracts [Member] | |||
Derivatives and Hedging Activities | |||
Notional amount | 58,424 | 64,790 | |
Derivatives not designated as hedging instruments [Member] | Equity contracts [Member] | |||
Derivatives and Hedging Activities | |||
Notional amount | 53,666 | 56,649 | |
Derivatives not designated as hedging instruments [Member] | Credit contracts [Member] | |||
Derivatives and Hedging Activities | |||
Notional amount | 859 | 715 | |
Derivatives not designated as hedging instruments [Member] | Foreign exchange contracts [Member] | |||
Derivatives and Hedging Activities | |||
Notional amount | 4,141 | 3,996 | |
Derivatives not designated as hedging instruments [Member] | Other contracts [Member] | |||
Derivatives and Hedging Activities | |||
Notional amount | 1,349 | 450 | |
Other assets [Member] | Derivatives not designated as hedging instruments [Member] | |||
Derivatives and Hedging Activities | |||
Gross fair value of assets | [1] | 3,290 | 3,483 |
Other assets [Member] | Derivatives not designated as hedging instruments [Member] | Interest rate contracts [Member] | |||
Derivatives and Hedging Activities | |||
Gross fair value of assets | [1] | 609 | 1,081 |
Other assets [Member] | Derivatives not designated as hedging instruments [Member] | Equity contracts [Member] | |||
Derivatives and Hedging Activities | |||
Gross fair value of assets | [1] | 2,631 | 2,367 |
Other assets [Member] | Derivatives not designated as hedging instruments [Member] | Credit contracts [Member] | |||
Derivatives and Hedging Activities | |||
Gross fair value of assets | [1] | 7 | |
Other assets [Member] | Derivatives not designated as hedging instruments [Member] | Foreign exchange contracts [Member] | |||
Derivatives and Hedging Activities | |||
Gross fair value of assets | [1] | 43 | 35 |
Other assets [Member] | Derivatives not designated as hedging instruments [Member] | Other contracts [Member] | |||
Derivatives and Hedging Activities | |||
Gross fair value of assets | [1] | 0 | |
Other liabilities [Member] | Derivatives not designated as hedging instruments [Member] | |||
Derivatives and Hedging Activities | |||
Gross fair value of liabilities | [2] | 3,647 | 3,111 |
Other liabilities [Member] | Derivatives not designated as hedging instruments [Member] | Interest rate contracts [Member] | |||
Derivatives and Hedging Activities | |||
Gross fair value of liabilities | [2] | 602 | 415 |
Other liabilities [Member] | Derivatives not designated as hedging instruments [Member] | Equity contracts [Member] | |||
Derivatives and Hedging Activities | |||
Gross fair value of liabilities | [2] | 3,018 | 2,671 |
Other liabilities [Member] | Derivatives not designated as hedging instruments [Member] | Credit contracts [Member] | |||
Derivatives and Hedging Activities | |||
Gross fair value of liabilities | [2] | 2 | |
Other liabilities [Member] | Derivatives not designated as hedging instruments [Member] | Foreign exchange contracts [Member] | |||
Derivatives and Hedging Activities | |||
Gross fair value of liabilities | [2] | 27 | 23 |
Policyholder account balances, future policy benefits and claims [Member] | GMWB and GMAB embedded derivatives [Member] | |||
Derivatives and Hedging Activities | |||
Gross fair value of liabilities | [2],[3] | (686) | (49) |
Policyholder account balances, future policy benefits and claims [Member] | IUL embedded derivatives [Member] | |||
Derivatives and Hedging Activities | |||
Gross fair value of liabilities | [2] | 684 | 601 |
Policyholder account balances, future policy benefits and claims [Member] | Indexed annuity embedded derivatives [Member] | |||
Derivatives and Hedging Activities | |||
Gross fair value of liabilities | [2] | 15 | 5 |
Policyholder account balances, future policy benefits and claims [Member] | Total embedded derivatives [Member] | |||
Derivatives and Hedging Activities | |||
Gross fair value of liabilities | [2] | $ 13 | $ 557 |
[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 indexed annuity 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 as of September 30, 2018 included $178 million of individual contracts in a liability position and $864 million of individual contracts in an asset position. The fair value of the GMWB and GMAB embedded derivatives as of December 31, 2017 included $443 million of individual contracts in a liability position and $492 million |
Derivatives and Hedging Activ_4
Derivatives and Hedging Activities (Income Statement) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Interest credited to fixed accounts [Member] | ||||
Impact of derivatives not designated as hedging instruments, including embedded derivatives, on the Consolidated Statements of Income | ||||
Amount of gain (loss) on derivatives recognized in income | $ (6) | $ (6) | $ 19 | $ 7 |
Interest credited to fixed accounts [Member] | IUL embedded derivatives [Member] | ||||
Impact of derivatives not designated as hedging instruments, including embedded derivatives, on the Consolidated Statements of Income | ||||
Amount of gain (loss) on derivatives recognized in income | (40) | (24) | (18) | (43) |
Benefits, claims, losses and settlement expenses [Member] | ||||
Impact of derivatives not designated as hedging instruments, including embedded derivatives, on the Consolidated Statements of Income | ||||
Amount of gain (loss) on derivatives recognized in income | (153) | (3) | (394) | (278) |
Benefits, claims, losses and settlement expenses [Member] | GMWB and GMAB embedded derivatives [Member] | ||||
Impact of derivatives not designated as hedging instruments, including embedded derivatives, on the Consolidated Statements of Income | ||||
Amount of gain (loss) on derivatives recognized in income | 261 | 227 | 637 | 569 |
Derivatives not designated as hedging instruments [Member] | Interest credited to fixed accounts [Member] | Equity contracts [Member] | ||||
Impact of derivatives not designated as hedging instruments, including embedded derivatives, on the Consolidated Statements of Income | ||||
Amount of gain (loss) on derivatives recognized in income | 34 | 18 | 37 | 50 |
Derivatives not designated as hedging instruments [Member] | Benefits, claims, losses and settlement expenses [Member] | Interest rate contracts [Member] | ||||
Impact of derivatives not designated as hedging instruments, including embedded derivatives, on the Consolidated Statements of Income | ||||
Amount of gain (loss) on derivatives recognized in income | (206) | 15 | (740) | 63 |
Derivatives not designated as hedging instruments [Member] | Benefits, claims, losses and settlement expenses [Member] | Equity contracts [Member] | ||||
Impact of derivatives not designated as hedging instruments, including embedded derivatives, on the Consolidated Statements of Income | ||||
Amount of gain (loss) on derivatives recognized in income | (210) | (241) | (308) | (859) |
Derivatives not designated as hedging instruments [Member] | Benefits, claims, losses and settlement expenses [Member] | Credit contracts [Member] | ||||
Impact of derivatives not designated as hedging instruments, including embedded derivatives, on the Consolidated Statements of Income | ||||
Amount of gain (loss) on derivatives recognized in income | 4 | (3) | 22 | (22) |
Derivatives not designated as hedging instruments [Member] | Benefits, claims, losses and settlement expenses [Member] | Foreign exchange contracts [Member] | ||||
Impact of derivatives not designated as hedging instruments, including embedded derivatives, on the Consolidated Statements of Income | ||||
Amount of gain (loss) on derivatives recognized in income | 0 | 1 | (1) | (27) |
Derivatives not designated as hedging instruments [Member] | Benefits, claims, losses and settlement expenses [Member] | Other contracts [Member] | ||||
Impact of derivatives not designated as hedging instruments, including embedded derivatives, on the Consolidated Statements of Income | ||||
Amount of gain (loss) on derivatives recognized in income | $ (2) | $ (2) | $ (4) | $ (2) |
Derivatives and Hedging Activ_5
Derivatives and Hedging Activities (Option Pay/Rec) (Details) $ in Millions | Sep. 30, 2018USD ($) | |
Summary of option premiums payable and receivable | ||
Premiums payable | $ 1,390 | |
Premiums receivable | 705 | |
2018 [Member] | ||
Summary of option premiums payable and receivable | ||
Premiums payable | 51 | [1] |
Premiums receivable | 31 | [1] |
2019 [Member] | ||
Summary of option premiums payable and receivable | ||
Premiums payable | 274 | |
Premiums receivable | 169 | |
2020 [Member] | ||
Summary of option premiums payable and receivable | ||
Premiums payable | 197 | |
Premiums receivable | 130 | |
2021 [Member] | ||
Summary of option premiums payable and receivable | ||
Premiums payable | 168 | |
Premiums receivable | 118 | |
2022 [Member] | ||
Summary of option premiums payable and receivable | ||
Premiums payable | 206 | |
Premiums receivable | 198 | |
2023-2026 [Member] | ||
Summary of option premiums payable and receivable | ||
Premiums payable | 494 | |
Premiums receivable | $ 59 | |
[1] | 2018 amounts represent the amounts payable and receivable for the period from October 1, 2018 to December 31, 2018 |
Derivatives and Hedging Activ_6
Derivatives and Hedging Activities (Cash Flow Hedges and Credit Risk) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | |
General Cash Flow Hedge Information [Abstract] | ||
Derivatives designated as cash flow hedges | $ 0 | |
Cash flow hedge loss to be reclassified within twelve months | $ 0 | |
Longest period of time over which the entity hedges exposure to the variability in future cash flows | 1 year | |
Derivatives liabilities, credit risk related contingent features | ||
Aggregate fair value of derivative contracts in a net liability position containing such credit contingent instruments | $ 409 | $ 299 |
Aggregate fair value of assets posted as collateral for such instruments | 409 | 296 |
Aggregate fair value of additional assets required to be posted or needed to settle the instruments | $ 0 | $ 3 |
Shareholder's Equity (Comprehen
Shareholder's Equity (Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | ||
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] | $ (89) | $ 52 | $ (832) | $ 245 |
Reclassification of net securities (gains) losses included in net income, pretax | [2] | (4) | (3) | (14) | (34) |
Impact of deferred acquisition costs, deferred sales inducement costs, unearned revenue, benefit reserves and reinsurance recoverables, pretax | 28 | (61) | 347 | (168) | |
Net unrealized securities gains (losses), pretax | (65) | (12) | (499) | 43 | |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification, before Tax, Parent [Abstract] | |||||
Reclassification of net derivative (gains) losses included in net income, pretax | [3] | 0 | 1 | 1 | 4 |
Net unrealized derivative gains (losses), pretax | 0 | 1 | 1 | 4 | |
Other, pretax | 0 | (1) | |||
Total other comprehensive income (loss), pretax | (65) | (11) | (498) | 46 | |
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] | 19 | (18) | 177 | (85) |
Reclassification of net securities (gains) losses included in net income, tax | 1 | 1 | 3 | 12 | |
Impact of deferred acquisition costs, deferred sales inducement costs, unearned revenue, benefit reserves and reinsurance recoverables, tax | (6) | 22 | (73) | 59 | |
Net unrealized securities gains (losses), tax | 14 | 5 | 107 | (14) | |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification, Tax, Parent [Abstract] | |||||
Reclassification of net derivative (gains) losses included in net income, tax | 0 | 0 | 0 | (1) | |
Net unrealized derivatives gains (losses), tax | 0 | 0 | 0 | (1) | |
Other, tax | 0 | 0 | |||
Total other comprehensive income (loss), tax | 14 | 5 | 107 | (15) | |
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] | (70) | 34 | (655) | 160 |
Reclassification of net securities (gains) losses included in net income, net of tax | (3) | (2) | (11) | (22) | |
Impact of deferred acquisition costs, deferred sales inducement costs, unearned revenue, benefit reserves and reinsurance recoverables, net of tax | 22 | (39) | 274 | (109) | |
Net unrealized securities gains (losses), net of tax | (51) | (7) | (392) | 29 | |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification and Tax, Parent [Abstract] | |||||
Reclassification of net derivative (gains) losses included in net income, net of tax | 0 | 1 | 1 | 3 | |
Net unrealized derivatives gains (losses), net of tax | 0 | 1 | 1 | 3 | |
Other, net of tax | 0 | 0 | 0 | (1) | |
Total other comprehensive income (loss), net of tax | $ (51) | $ (6) | $ (391) | $ 31 | |
[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 (loss) during the period. | ||||
[2] | Pretax amounts are recorded in net realized investment gains (losses). | ||||
[3] | Pretax amounts are recorded in net investment income. |
Shareholder's Equity (Reclassif
Shareholder's Equity (Reclassifications) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance | $ 116 | $ 494 | $ 456 | $ 457 | |
OCI before reclassifications | (48) | (5) | (381) | 50 | |
Amounts reclassified from AOCI | (3) | (1) | (10) | (19) | |
Total OCI | (51) | (6) | (391) | 31 | |
Ending balance | 65 | 488 | 65 | 488 | |
Net unrealized securities gains [Member] | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance | 117 | 497 | 458 | 461 | |
OCI before reclassifications | (48) | (5) | (381) | 51 | |
Amounts reclassified from AOCI | (3) | (2) | (11) | (22) | |
Total OCI | (51) | (7) | (392) | 29 | |
Ending balance | [1] | 66 | 490 | 66 | 490 |
Noncredit related impairments on securities and net unrealized securities gains (losses) on previously impaired securities | 0 | 2 | 0 | 2 | |
Net unrealized derivatives gains [Member] | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance | 0 | (2) | (1) | (4) | |
OCI before reclassifications | 0 | 0 | 0 | 0 | |
Amounts reclassified from AOCI | 0 | 1 | 1 | 3 | |
Total OCI | 0 | 1 | 1 | 3 | |
Ending balance | 0 | (1) | 0 | (1) | |
Other [Member] | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance | (1) | (1) | (1) | 0 | |
OCI before reclassifications | 0 | 0 | 0 | (1) | |
Amounts reclassified from AOCI | 0 | 0 | 0 | 0 | |
Total OCI | 0 | 0 | 0 | (1) | |
Ending balance | $ (1) | $ (1) | $ (1) | $ (1) | |
[1] | Includes nil and $2 million of noncredit related impairments on securities and net unrealized securities gains (losses) on previously impaired securities as of September 30, 2018 and September 30, 2017 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Operating Loss Carryforwards [Line Items] | ||||||
Effective tax rate (as a percent) | (4.20%) | 11.80% | 4.30% | 9.40% | ||
Benefit related to a change in tax accounting method | $ 8 | |||||
Remeasurement of deferred tax assets and liabilities to Tax Act's statutory 21% | $ 136 | |||||
Valuation allowance | 12 | $ 12 | 11 | |||
Gross unrecognized tax benefits | 16 | 16 | 14 | |||
Unrecognized tax benefits, net of federal tax benefits, that would affect the effective tax rate if recognized | 6 | 6 | 5 | |||
Decrease in unrecognized tax benefits is reasonably possible | 10 | 10 | ||||
Net increase (decrease) in interest and penalties | 0 | $ (1) | 0 | $ 1 | ||
Payable related to accrued interest and penalties | 1 | 1 | $ 1 | |||
State and local jurisdiction [Member] | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
State net operating losses | $ 10 | $ 10 | ||||
Income tax provision [Member] | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Benefit related to an out-of-period correction for a reversal of a tax reserve | $ 20 | $ 20 |
Contingencies (Details)
Contingencies (Details) - Future guaranty fund assessments [Member] - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Contingencies | ||
Liability related to guaranty fund assessments | $ 13 | $ 14 |
Related premium tax asset | $ 12 | $ 12 |