DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION - shares | 9 Months Ended | |
Sep. 30, 2016 | Nov. 10, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2,016 | |
Amendment Flag | false | |
Entity Registrant Name | AXA EQUITABLE LIFE INSURANCE CO | |
Entity Central Index Key | 727,920 | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Well-known Seasoned Issuer | No | |
Entity Common Stock, Shares Outstanding | 2,000,000 |
CONSOLIDATED BALANCE SHEET (UNA
CONSOLIDATED BALANCE SHEET (UNAUDITED) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
ASSETS | ||
Fixed maturities available for sale, at fair value (amortized cost of $33,400 and $31,201) | $ 36,480 | $ 31,893 |
Mortgage loans on real estate (net of valuation allowances of $8 and $6) | 8,769 | 7,171 |
Policy loans | 3,371 | 3,393 |
Other equity investments | 1,454 | 1,477 |
Trading securities, at fair value | 8,702 | 6,805 |
Other invested assets | 1,946 | 1,788 |
Total investments | 60,722 | 52,527 |
Cash and cash equivalents | 3,701 | 3,063 |
Cash and cash equivalents, excluding Variable Interest Entities | 3,658 | 3,028 |
Cash and securities segregated, at fair value | 492 | 565 |
Broker-dealer related receivables | 2,070 | 1,971 |
Securities purchased under agreements to resell | 0 | 79 |
Deferred policy acquisition costs | 4,516 | 4,469 |
Goodwill and other intangible assets, net | 3,744 | 3,733 |
Amounts due from reinsurers | 4,550 | 4,466 |
Loans to affiliates | 704 | 1,087 |
Guaranteed minimum income benefit reinsurance contract asset, at fair value | 13,113 | 10,570 |
Other assets | 4,420 | 4,634 |
Separate Accounts’ assets | 110,756 | 107,497 |
Total Assets | 209,034 | 194,626 |
LIABILITIES | ||
Policyholders’ account balances | 36,920 | 33,033 |
Future policy benefits and other policyholders’ liabilities | 26,191 | 24,531 |
Broker-dealer related payables | 515 | 404 |
Securities sold under agreements to repurchase | 2,145 | 1,890 |
Amounts due to reinsurers | 105 | 131 |
Customers related payables | 1,852 | 1,715 |
Short-term debt | 387 | 584 |
Current and deferred income taxes | 6,160 | 4,647 |
Other liabilities | 2,919 | 2,586 |
Separate Accounts’ liabilities | 110,756 | 107,497 |
Total liabilities | 188,005 | 177,018 |
Commitments and contingent liabilities | 0 | 0 |
Redeemable Noncontrolling Interest | 146 | 13 |
Stockholders' Equity Attributable to Parent [Abstract] | ||
Common stock, $1.25 par value; 2 million shares authorized, issued and outstanding | 2 | 2 |
Capital in excess of par value | 5,313 | 5,321 |
Retained earnings | 10,954 | 8,958 |
Accumulated other comprehensive income (loss) | 1,613 | 228 |
Total AXA Equitable’s equity | 17,882 | 14,509 |
Noncontrolling interest | 3,001 | 3,086 |
Total equity | 20,883 | 17,595 |
Total Liabilities, Redeemable Noncontrolling Interest and Equity | 209,034 | 194,626 |
Variable Interest Entity, Primary Beneficiary | ||
ASSETS | ||
Total investments | 205 | 0 |
Cash and cash equivalents | 43 | 0 |
Other assets | 41 | 0 |
Total Assets | 289 | 0 |
LIABILITIES | ||
Other liabilities | $ 55 | $ 0 |
CONSOLIDATED BALANCE SHEET (UN3
CONSOLIDATED BALANCE SHEET (UNAUDITED) (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Fixed maturities available for sale, amortized cost | $ 33,400 | |
Mortgage loans on real estate, valuation allowances | $ 8 | $ 6 |
Common Stock par value (in dollars per share) | $ 1.25 | $ 1.25 |
Common Stock authorized (in shares) | 2,000,000 | 2,000,000 |
Common stock issued (in shares) | 2,000,000 | 2,000,000 |
Common stock outstanding (in shares) | 2,000,000 | 2,000,000 |
Fixed Maturities | ||
Fixed maturities available for sale, amortized cost | $ 33,400 | $ 31,201 |
CONSOLIDATED STATEMENTS OF EARN
CONSOLIDATED STATEMENTS OF EARNINGS (LOSS) (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
REVENUES | ||||
Universal life and investment-type product policy fee income | $ 978 | $ 937 | $ 2,794 | $ 2,747 |
Premiums | 141 | 111 | 388 | 372 |
Net investment income (loss): | ||||
Investment income (loss) from derivative instruments | (248) | 915 | 1,098 | 337 |
Other investment income (loss) | 595 | 514 | 1,893 | 1,577 |
Total net investment income (loss) | 347 | 1,429 | 2,991 | 1,914 |
Investment gains (losses), net: | ||||
Total other-than-temporary impairment losses | (10) | (14) | (35) | (32) |
Portion of loss recognized in other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Net impairment losses recognized | (10) | (14) | (35) | (32) |
Other investment gains (losses), net | 6 | 10 | 70 | 14 |
Total investment gains (losses), net | (4) | (4) | 35 | (18) |
Commissions, fees and other income | 952 | 978 | 2,796 | 2,983 |
Increase (decrease) in the fair value of the reinsurance contract asset | (198) | 2,263 | 2,543 | 1,503 |
Total revenues | 2,216 | 5,714 | 11,547 | 9,501 |
BENEFITS AND OTHER DEDUCTIONS | ||||
Policyholders’ benefits | 611 | 1,251 | 3,037 | 2,793 |
Interest credited to policyholders’ account balances | 511 | (5) | 1,137 | 583 |
Compensation and benefits | 430 | 422 | 1,284 | 1,355 |
Commissions | 271 | 275 | 812 | 841 |
Distribution related payments | 96 | 97 | 276 | 300 |
Amortization of deferred sales commissions | 10 | 12 | 32 | 37 |
Interest expense | 4 | 6 | 11 | 16 |
Amortization of deferred policy acquisition costs | 156 | 90 | 359 | 248 |
Capitalization of deferred policy acquisition costs | (152) | (155) | (439) | (456) |
Rent expense | 39 | 42 | 116 | 122 |
Amortization of other intangible assets | 7 | 7 | 21 | 21 |
Other operating costs and expenses | 263 | 333 | 901 | 925 |
Total benefits and other deductions | 2,246 | 2,375 | 7,547 | 6,785 |
Earnings (loss) from continuing operations, before income taxes | (30) | 3,339 | 4,000 | 2,716 |
Income tax (expense) benefit | 52 | (1,064) | (1,197) | (612) |
Net earnings (loss) | 22 | 2,275 | 2,803 | 2,104 |
Less: net (earnings) loss attributable to the noncontrolling interest | (98) | (90) | (307) | (291) |
Net Earnings (Loss) Attributable to AXA Equitable | $ (76) | $ 2,185 | $ 2,496 | $ 1,813 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net earnings (loss) | $ 22 | $ 2,275 | $ 2,803 | $ 2,104 |
Other comprehensive income (loss) net of income taxes: | ||||
Foreign currency translation adjustment | (1) | (11) | 3 | (19) |
Change in unrealized gains (losses), net of reclassification adjustment | (22) | 203 | 1,383 | (478) |
Changes in defined benefit plan related items not yet recognized in periodic benefit cost, net of reclassification adjustment | 0 | 19 | 0 | 58 |
Total other comprehensive income (loss), net of income taxes | (23) | 211 | 1,386 | (439) |
Comprehensive income (loss) | (1) | 2,486 | 4,189 | 1,665 |
Less: Comprehensive (income) loss attributable to noncontrolling interest | (99) | (85) | (308) | (281) |
Comprehensive Income (Loss) Attributable to AXA Equitable | $ (100) | $ 2,401 | $ 3,881 | $ 1,384 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY (UNAUDITED) - USD ($) $ in Millions | Total | Parent | Common Stock | Additional Paid-in Capital | Retained Earnings | AOCI Attributable to Parent | Noncontrolling Interest |
Beginning of year at Dec. 31, 2014 | $ 5,957 | $ 8,809 | $ 351 | $ 2,989 | |||
Net earnings (loss) | $ 2,104 | 1,813 | |||||
Net earnings (loss) attributable to noncontrolling interest | 291 | ||||||
Dividends paid to noncontrolling interest | (326) | ||||||
Other comprehensive income (loss) | (439) | (429) | (10) | ||||
Repurchase of AB Holding units | (68) | ||||||
Dividends and distributions | (517) | ||||||
Other changes in noncontrolling interest | 6 | 10 | |||||
End of year at Sep. 30, 2015 | 18,878 | $ 15,992 | 5,963 | 10,105 | (78) | 2,886 | |
Common stock, at par value, beginning of year and end of period | 2 | ||||||
Beginning of year at Dec. 31, 2015 | 17,595 | 5,321 | 8,958 | 228 | 3,086 | ||
Net earnings (loss) | 2,803 | 2,496 | |||||
Net earnings (loss) attributable to noncontrolling interest | 299 | ||||||
Dividends paid to noncontrolling interest | (287) | ||||||
Other comprehensive income (loss) | 1,386 | 1,385 | 1 | ||||
Repurchase of AB Holding units | (92) | ||||||
Dividends and distributions | (500) | ||||||
Other changes in noncontrolling interest | (8) | (6) | |||||
End of year at Sep. 30, 2016 | 20,883 | $ 17,882 | $ 5,313 | $ 10,954 | $ 1,613 | $ 3,001 | |
Common stock, at par value, beginning of year and end of period | $ 2 | $ 2 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Net earnings (loss) | $ 2,803 | $ 2,104 |
Adjustments to reconcile net earnings (loss) to net cash provided by (used in) operating activities: | ||
Interest credited to policyholders’ account balances | 1,137 | 583 |
Universal life and investment-type product policy fee income | (2,794) | (2,747) |
(Increase) decrease in the fair value of the reinsurance contract asset | (2,543) | (1,503) |
(Income) loss related to derivative instruments | (1,098) | (337) |
Investment (gains) losses, net | (35) | 18 |
Realized and unrealized (gains) losses on trading securities | (117) | 40 |
Amortization of deferred compensation | 7 | 8 |
Amortization of deferred sales commissions | 32 | 37 |
Other depreciation and amortization | (61) | (19) |
Amortization of deferred cost of reinsurance asset | 115 | 92 |
Amortization of other intangible assets | 21 | 21 |
Net broker-dealer and customer related receivables/payables | 80 | (111) |
Reinsurance recoverable | (120) | (59) |
Segregated cash and securities, net | 73 | 94 |
Deferred policy acquisition costs | (80) | (208) |
Future policy benefits | 1,370 | 1,105 |
Current and deferred income taxes | 704 | 546 |
Accounts payable and accrued expenses | 208 | 344 |
Other, net | 133 | 65 |
Net cash provided by (used in) operating activities | (210) | 73 |
Cash flows from investing activities: | ||
Fixed maturities, available for sale | 5,038 | 3,520 |
Mortgage loans on real estate | 595 | 432 |
Trading account securities | 4,664 | 9,314 |
Other proceeds | 31 | 122 |
Fixed maturities, available for sale | (6,991) | (3,877) |
Mortgage loans on real estate | (2,193) | (775) |
Trading account securities | (6,543) | (10,501) |
Other payments | (177) | (37) |
Cash settlements related to derivative instruments | 994 | 850 |
Decrease in loans to affiliates | 383 | 0 |
Change in short-term investments | 72 | 4 |
Investment in capitalized software, leasehold improvements and EDP equipment | (58) | (41) |
Purchase of business, net of cash acquired | (21) | 0 |
Other, net | 118 | 160 |
Net cash provided by (used in) investing activities | (4,088) | (829) |
Cash flows from financing activities: | ||
Deposits and transfers from Separate Accounts | 5,987 | 3,442 |
Withdrawals | (306) | (651) |
Change in short-term financings | (197) | (128) |
Change in collateralized pledged assets | (64) | 19 |
Change in collateralized pledged liabilities | 202 | (134) |
(Decrease) increase in overdrafts payable | (75) | 0 |
Payments of Dividends | (500) | (517) |
Repurchase of AB Holding units | (129) | (100) |
Distribution to noncontrolling interests in consolidated entities | (287) | (326) |
Increase (decrease) in Securities sold under agreement to repurchase | 253 | 932 |
(Increase) decrease in securities purchased under agreement to resell | 79 | (224) |
Other, net | 6 | 12 |
Net cash provided by (used in) financing activities | 4,929 | 2,325 |
Effect of exchange rate changes on cash and cash equivalents | 7 | (9) |
Change in cash and cash equivalents | 638 | 1,560 |
Cash and cash equivalents, beginning of year | 3,063 | 2,716 |
Cash and Cash Equivalents, End of Period | 3,701 | 4,276 |
Variable Interest Entity, Primary Beneficiary | ||
Adjustments to reconcile net earnings (loss) to net cash provided by (used in) operating activities: | ||
Variable interest entities | (45) | 0 |
Cash flows from financing activities: | ||
Distribution to noncontrolling interests in consolidated entities | (40) | $ 0 |
Cash and cash equivalents, beginning of year | 0 | |
Cash and Cash Equivalents, End of Period | $ 43 |
ORGANIZATION AND BASIS OF PRESE
ORGANIZATION AND BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Basis of Presentation | ORGANIZATION AND BASIS OF PRESENTATION The preparation of the accompanying unaudited consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make estimates and assumptions (including normal, recurring accruals) that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from these estimates. The accompanying unaudited interim consolidated financial statements reflect all adjustments necessary in the opinion of management for a fair statement of the consolidated financial position of AXA Equitable and its consolidated results of operations and cash flows for the periods presented. All significant intercompany transactions and balances have been eliminated in consolidation. These statements should be read in conjunction with the audited Consolidated Financial Statements of AXA Equitable for the year ended December 31, 2015 . The results of operations for the three and nine months ended September 30, 2016 are not necessarily indicative of the results to be expected for the full year. The accompanying consolidated financial statements include the accounts of AXA Equitable and its subsidiaries engaged in insurance related businesses (collectively, the “Insurance segment”); other subsidiaries, principally AB, engaged in investment management related businesses (the “Investment Management segment”), partnerships and joint ventures in which AXA Equitable or its subsidiaries have control and a majority economic interest as well as those variable interest entities (“VIEs”) that meet the requirements for consolidation (collectively the “Company”). At September 30, 2016 and December 31, 2015 , AXA Equitable’s economic interest in AB was 29.2 % and 28.6% . At September 30, 2016 and December 31, 2015 , respectively, AXA and its subsidiaries’ economic interest in AB was 64.2 % and 62.8% . The terms “ third quarter 2016 ” and “ third quarter 2015 ” refer to the three months ended September 30, 2016 and 2015 , respectively. The terms “ first nine months of 2016 ” and “ first nine months of 2015 ” refer to the nine months ended September 30, 2016 and 2015 , respectively. Certain reclassifications have been made in the amounts presented for prior periods to conform those periods to the current presentation. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | SIGNIFICANT ACCOUNTING POLICIES AND OTHER CHANGES Accounting for Variable Annuities with GMDB and GMIB Features Future claims exposure on products with guaranteed minimum death benefit (“GMDB”) and guaranteed minimum income benefit (“GMIB”) features are sensitive to movements in the equity markets and interest rates. The Company has in place various hedging programs utilizing derivatives that are designed to mitigate the impact of movements in equity markets and interest rates. The accounting for these various hedging programs does not qualify for hedge accounting treatment. As a result, changes in the value of the derivatives will be recognized in the period in which they occur while offsetting changes in reserves and deferred policy acquisition costs (“DAC”) will be recognized over time in accordance with policies described in the Company’s Notes to Consolidated Financial Statements for the year ended December 31, 2015 , under “Policyholders’ Account Balances and Future Policy Benefits” and “DAC”. These differences in recognition contribute to earnings volatility. GMIB reinsurance contracts are used to cede to affiliated and non-affiliated reinsurers a portion of the exposure on variable annuity products that offer the GMIB feature. The GMIB reinsurance contracts are accounted for as derivatives and are reported at fair value. Gross reserves for GMIB are calculated on the basis of assumptions related to projected benefits and related contract charges over the lives of the contracts and therefore will not immediately reflect the offsetting impact on future claims exposure resulting from the same capital market and/or interest rate fluctuations that cause gains or losses on the fair value of the GMIB reinsurance contracts. The changes in the fair value of the GMIB reinsurance contracts are recorded in the period in which they occur while offsetting changes in gross reserves and DAC for GMIB are recognized over time in accordance with policies described in the Company’s Notes to Consolidated Financial Statements for the year ended December 31, 2015 under “Policyholders’ Account Balances and Future Policy Benefits” and “DAC”. These differences in recognition contribute to earnings volatility. Adoption of New Accounting Pronouncements In February 2015, the FASB issued a new consolidation standard that makes targeted amendments to the VIE assessment, including guidance specific to the analysis of fee arrangements and related party relationships, modifies the guidance for the evaluation of limited partnerships and similar entities for consolidation to eliminate the presumption of general partner control, and ends the deferral that had been granted to certain investment companies for applying previous VIE guidance. The Company adopted this new standard beginning January 1, 2016, having elected not to early-adopt in previous interim periods, and applied the guidance using a modified retrospective approach, thereby not requiring the restatement of prior year periods. The Company’s reevaluation of all legal entities under the new standard resulted in identification of additional VIEs and consolidation of certain investment products of the Investment Management segment that were not consolidated in accordance with previous guidance. “See Consolidation of VIEs” below. In May 2015, the FASB issued new guidance related to disclosures for investments in certain entities that calculate net asset value (“NAV”) per share (or its equivalent). Under the new guidance, investments measured at NAV, as a practical expedient for fair value, are excluded from the fair value hierarchy. Removing investments measured using the practical expedient from the fair value hierarchy was intended to eliminate the diversity in practice with respect to the categorization of these investments. The only criterion for categorizing investments in the fair value hierarchy is now the observability of the inputs. The amendment was effective retrospectively for interim and annual periods beginning after December 15, 2015. Implementation of this guidance did not have a material impact on the Company’s consolidated financial statements. In April 2015, the FASB issued new guidance, simplifying the presentation of debt issuance costs, which requires debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying value of the associated debt liability, consistent with the presentation of a debt discount. The new guidance was effective retrospectively for interim and annual periods beginning after December 15, 2015. Implementation of this guidance did not have a material impact on the Company’s consolidated financial statements. In June 2014, the FASB issued new guidance for accounting for share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period. The new guidance was effective for interim and annual periods beginning after December 15, 2015. Implementation of this guidance did not have a material impact on the Company’s consolidated financial statements. Future Adoption of New Accounting Pronouncements In August 2016, the FASB issued new guidance to simplify elements of cash flow classification. The new guidance is intended to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. The new guidance is effective for interim and annual periods beginning after December 15, 2017 and should be applied using a retrospective transition method. Management is currently evaluating the impact that adoption of this guidance will have on the Company’s consolidated financial statements. In June 2016, the FASB issued new guidance related to the accounting for credit losses on financial instruments. The new guidance introduces an approach based on expected losses to estimate credit losses on certain types of financial instruments. It also modifies the impairment model for available-for-sale debt securities and provides for a simplified accounting model for purchased financial assets with credit deterioration since their origination. The new guidance is effective for interim and annual periods beginning after December 15, 2019 with early adoption permitted for annual periods beginning after December 15, 2018. Management is currently evaluating the impact that adoption of this guidance will have on the Company’s consolidated financial statements. In March 2016, the FASB issued new guidance simplifying the transition to the equity method of accounting. The amendment eliminates the requirement that when an investment qualifies for use of the equity method as a result of an increase in the level of ownership interest or degree of influence, an investor must adjust the investment, results of operations and retained earnings retroactively on a step-by-step basis as if the equity method had been in effect during all previous periods that the investments had been held. The amendment is effective for interim and annual periods beginning after December 15, 2016 and should be applied prospectively upon their effective date to increases in the level of ownership interest or degree of influence that result in the adoption of the equity method. The amendment is not expected to have a material impact on the Company’s consolidated financial statements. In March 2016, the FASB issued new guidance on improvements to employee share-based payment accounting. The amendment includes provisions intended to simplify various aspects related to how share-based payments are accounted for and presented in the financial statements including: income tax effects of share-based payments, minimum statutory tax withholding requirements and forfeitures. The amendment is effective for interim and annual periods beginning after December 15, 2016. The provisions will be applied using various transition approaches (prospective, retrospective and modified retrospective). Management is currently evaluating the impact that the adoption of this standard will have on the Company’s consolidated financial statements. In February 2016, the FASB issued revised guidance to lease accounting. The revised guidance will require lessees to recognize a right-of-use asset and a lease liability for virtually all of their leases. Lessor accounting will continue to be similar to the current model, but updated to align with certain changes to the lessee model. Extensive quantitative and qualitative disclosures, including significant judgments made by management, will be required to provide greater insight into the extent of revenue and expense recognized and expected to be recognized from existing contracts. The revised guidance is effective for interim and annual periods, beginning after December 15, 2018, with early adoption permitted. Management is currently evaluating the impact that adoption of this guidance will have on the Company’s consolidated financial statements. In May 2014, the FASB issued new revenue recognition guidance that is intended to improve and converge the financial reporting requirements for revenue from contracts with customers with International Financial Reporting Standards (“IFRS”). The new guidance applies to contracts that deliver goods or services to a customer, except when those contracts are for: insurance, leases, rights and obligations that are in the scope of certain financial instruments (i.e., derivative contracts) and guarantees other than product or service warranties. The new guidance is effective for interim and annual periods, beginning after December 15, 2017, with early adoption permitted for interim and annual periods beginning after December 15, 2016. Management is currently evaluating the impact that adoption of this guidance will have on the Company’s consolidated financial statements. Consolidation of VIEs A VIE must be consolidated by its primary beneficiary, which generally is defined as the party who has a controlling financial interest in the VIE. The Company is deemed to have a controlling financial interest in a VIE if it has (i) the power to direct the activities of the VIE that most significantly affect the VIE’s economic performance, and (ii) the obligation to absorb losses of the VIE or the right to receive income from the VIE that potentially could be significant to the VIE. For purposes of evaluating (ii) above, fees paid to the Company as a decision maker or service provider are excluded if the fees are compensation for services provided commensurate with the level of effort required to be performed and the arrangement includes only customary terms, conditions or amounts present in arrangements for similar services negotiated at arm’s length. If the Company has a variable interest in an entity that is determined not to be a VIE, the entity then is evaluated for consolidation under the voting interest entity (“VOE”) model. For limited partnerships and similar entities, the Company is deemed to have a controlling financial interest in a VOE, and would be required to consolidate the entity, if the Company owns a majority of the entity’s kick-out rights through voting limited partnership interests and other limited partners do not hold substantive participating rights (or other rights that would indicate that the Company does not control the entity). For entities other than limited partnerships, the Company is deemed to have a controlling financial interest in a VOE if it owns a majority voting interest in the entity. The analysis performed to identify variable interests held, determine whether entities are VIEs or VOEs, and evaluate whether the Company has a controlling financial interest in such entities requires the exercise of judgment and is updated on a continuous basis as circumstances change or new entities are developed. The primary beneficiary evaluation generally is performed qualitatively based on all facts and circumstances, including consideration of economic interests in the VIE held directly and indirectly through related parties and entities under common control, as well as quantitatively, as appropriate. At September 30, 2016 , the Insurance segment’s General Account held approximately $1,202 million of investment assets in the form of equity interests issued by non-corporate legal entities determined under the new guidance to be VIEs, such as limited partnerships and limited liability companies, including hedge funds, private equity funds, and real estate-related funds. As an equity investor, the Insurance segment is considered to have a “variable interest” in each of these VIEs as a result of its participation in the risks and/or rewards these funds were designed to create by their defined portfolio objectives and strategies. Primarily through qualitative assessment, including consideration of related party interests and/or other financial arrangements, if any, the Insurance segment was not identified as primary beneficiary of any of these VIEs, largely due to its inability to direct the activities that most significantly impact their economic performance. Consequently, the Company continues to reflect these equity interests in the consolidated balance sheet as “Other equity investments” and to apply the equity method of accounting for these positions. The net assets of these non-consolidated VIEs are approximately $156,371 million , and the Company’s maximum exposure to loss from its direct involvement with these VIEs is the carrying value of its investment of $1,202 million at September 30, 2016 . Except for approximately $608 million of unfunded commitments at September 30, 2016 , the Company has no further economic interest in these VIEs in the form of guarantees, derivatives, credit enhancements or similar instruments and obligations. As a result of adopting the new guidance, the Company identified for consolidation under the VIE model three investment funds sponsored by AB. In addition, the Company identified as a VIE an AB private equity fund previously consolidated at December 31, 2015 under the VOE model. The assets and liabilities of these consolidated VIEs are presented separately on the face of the Company’s consolidated balance sheet at September 30, 2016 ; ownership interests not held by the Company relating to these consolidated VIEs are presented either as redeemable or non-redeemable non-controlling interest, as appropriate. During the nine months ended September 30, 2016, subsequent to the initial adoption of the VIEs guidance, AB consolidated two additional investment funds that were classified as VIEs in which AB obtained a controlling financial interest due to its investment in those funds and deconsolidated a VIE of which AB no longer was the primary beneficiary due to the redemption of its seed money from the fund. The table below illustrates the summary balance sheet amounts related to these VIEs at their consolidation dates. Nine Months Ended January 1, 2016 VIE Guidance Adoption Additional VIEs Consolidated VIEs De-consolidated (In Millions) Cash and cash equivalents $ 36 $ 22 $ (13 ) Investments 215 40 (126 ) Other assets 14 23 (59 ) Total assets 265 85 (198 ) Liabilities 14 41 (60 ) Redeemable non-controlling interest 251 44 (138 ) Total liabilities and redeemable non-controlling interest $ 265 $ 85 $ (198 ) As of September 30, 2016 , the net assets of investment products sponsored by AB that are non-consolidated VIEs are approximately $43,000 million and the Company’s maximum exposure to loss from its direct involvement with these VIEs is its investment of $12 million at September 30, 2016 . The Company has no further commitments to or economic interest in these VIEs. Assumption and Model Changes In third quarter 2016, as part of a planned model conversion, the Company updated the model used to calculate the variable life policyholder benefit reserves. The update aligned the renewal premium modeling used in the variable life benefit reserve calculation with the premium funding assumption used in the DAC and the initial fee liability calculations. In addition, as part of the planned model conversion, the calculation of premium loads resulting from the dynamic premium funding assumption was updated in the model used to calculate the interest sensitive life policyholder benefit reserve. The net impact of these model updates and assumption updates in the third quarter and first nine months of 2016, decreased policyholders’ benefits by $ 111 million, increased the amortization of DAC by $ 31 million and increased Universal life and investment-type product policy fee income by $ 5 million. In both the third quarter and first nine months of 2016, these model and assumption updates increased Earnings from continuing operations before income taxes and Net earnings by approximately $ 85 million and $ 55 million, respectively. Included in these balances are out-of-period adjustments (“OOPA's”) which decreased Earnings from continuing operations before income taxes by $ 30 million in both the third quarter and first nine months of 2016. In second quarter 2016, the Company updated its mortality assumption for certain VISL products as a result of favorable mortality experience, which decreased the amortization of DAC and the initial fee liability by $ 70 million and $ 16 million respectively. Additionally, in the second quarter 2016 the Company updated the General Account spread assumption for certain VISL products to reflect lower expected investment yields which increased the amortization of DAC and the initial fee liability by $ 79 million and $ 4 million, respectively. In the first nine months of 2016, these assumption updates decreased Earnings from continuing operations before income taxes and Net earnings by approximately $ 21 million and $ 14 million, respectively. In first quarter 2016, the Company raised cost of insurance (“COI”) rates for certain UL policies issued between 2004 and 2007, which have both issue ages 70 and above and a current face value amount of $1 million and above. The Company raised the COI rates for these policies as management expects future mortality and investment experience to be less favorable than what was anticipated when the original schedule of COI rates was established. This COI rate increase was larger than the increase that previously had been anticipated in management’s reserve assumptions. As a result, management updated the assumption to reflect the actual COI rate increase, resulting in a $ 71 million and $ 46 million increase in Earnings from continuing operations before income taxes and Net earnings, respectively, for the first nine months of 2015. In second quarter 2015, based upon management’s then current expectations of interest rates and future fund growth, the Company updated its reversion to the mean (“RTM”) assumption used to calculate GMDB/GMIB and VISL reserves and amortization DAC from 9.0% to 7.0%. The impact of this assumption update in the first nine months of 2015 was an increase in GMIB/GMDB reserves of $ 723 million, an increase in VISL reserves of $ 29 million and decrease in amortization of DAC of $ 67 million. In the first nine months of 2015, this assumption update decreased Earnings from continuing operations before income taxes and Net earnings by approximately $ 685 million and $ 445 million, respectively. In the second quarter of 2015, expectations of long-term lapse rates for certain Accumulator ® products at certain durations and moneyness levels were lowered based on emerging experience. This update increased expected future claim costs and the fair value of the GMIB reinsurance contract asset. The impact of this assumption update in the third quarter and first nine months of 2015 was an increase in the fair value of the GMIB reinsurance contract asset of $ 216 million, an increase in the GMIB reserves of $ 65 million and a decrease in the amortization of DAC of $ 13 million. In the first nine months of 2015, this assumption update increased Earnings from continuing operations before income taxes and Net earnings by approximately $ 164 million and $ 107 million, respectively. In the first quarter of 2015, the Company launched a lump sum payment option to certain contract holders with GMIB and GWBL benefits at the time their AAV falls to zero. As a result, the Company updated its future reserve assumptions to incorporate the expectation that some policyholders will utilize this option. The impact of this assumption update in the first nine months of 2015 resulted in a decrease in the fair value of the GMIB reinsurance contract asset of $ 263 million and a decrease in the GMIB reserves of $ 55 million. In the first nine months of 2015, this assumption update decreased Earnings from continuing operations before income taxes and Net earnings by approximately $ 208 million and $ 135 million, respectively. Out-of-Period Adjustments In third quarter 2016, the Company recorded several out-of-period adjustments (“ OOPA’s ”) in its financial statements. These OOPA’s resulted in an increase of $ 7 million and a decrease of $ 4 million in total revenues and increased total benefits and other deductions by $ 49 million and $ 40 million in the third quarter and first nine months of 2016, respectively. These OOPAs primarily related to errors in the models used to calculate policyholders’ benefit reserves for certain variable and interest sensitive life (“VISL”) products. Additionally, in third quarter 2016, the Company recorded an income tax expense as an OOPA, related to the settlement of inter-company balances between AB and its foreign subsidiaries, which created deemed dividends under Section 956 of the U.S. Internal Revenue Code of 1986, as amended. As a result, the Company has been understating its income tax provision and income tax liability since 2010. As a result of the deemed dividend adjustment discussed above, the accumulated undistributed earnings permanently invested outside the U.S. will decrease significantly as of December 31, 2016. This OOPA resulted in an increase of $54 million and $47 million in income tax expense and increased Earnings attributable to noncontrolling interest by $32 million and $27 million in the third quarter and first nine months of 2016, respectively. In the third quarter and first nine months of 2016, total OOPA’s including those discussed above, decreased Earnings from operations, before income tax by $ 42 million and $ 44 million, and Net earnings by $ 81 million and $ 76 million, respectively. In third quarter 2015, the Company recorded an OOPA in its financial statements related to the model used to calculate affiliated ceded reserves and deferred cost of reinsurance for its VISL products. The Company also recorded an OOPA in related to the GMIB and GWBL reserves to reflect the actual impact of the lump sum payment option launched in first quarter 2015 to certain contract holders with GMIB and GWBL benefits at the time their accumulated account value (“AAV”) falls to zero. These OOPA’s increased total benefits and other deductions by $23 million and $55 million in the third quarter and first nine months of 2015, respectively. In the third quarter and first nine months of 2015, the OOPA’s discussed above decreased Earnings from operations, before income tax by $23 million and $55 million and Net earnings by approximately $15 million and $36 million, respectively. Management has evaluated the impact of all OOPA’s both individually and in the aggregate and concluded they are not material to any previously reported quarterly or annual financial statements, or to the periods in which they were corrected. |
INVESTMENTS
INVESTMENTS | 9 Months Ended |
Sep. 30, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | INVESTMENTS Fixed Maturities and Equity Securities The following table provides information relating to fixed maturities and equity securities classified as AFS: Available-for-Sale Securities by Classification Amortized Gross Unrealized Gross Unrealized Fair OTTI (3) (In Millions) September 30, 2016: Fixed Maturity Securities: Public corporate $ 13,181 $ 1,089 $ 10 $ 14,260 $ — Private corporate 6,945 410 20 7,335 — U.S. Treasury, government and agency 10,915 1,462 20 12,357 — States and political subdivisions 432 93 1 524 — Foreign governments 361 41 8 394 — Commercial mortgage-backed 454 24 82 396 7 Residential mortgage-backed (1) 519 33 — 552 — Asset-backed (2) 52 10 1 61 3 Redeemable preferred stock 541 60 — 601 — Total Fixed Maturities 33,400 3,222 142 36,480 10 Equity securities 86 — — 86 — Total at September 30, 2016 $ 33,486 $ 3,222 $ 142 $ 36,566 $ 10 December 31, 2015: Fixed Maturity Securities: Public corporate $ 12,890 $ 688 $ 202 $ 13,376 $ — Private corporate 6,818 232 124 6,926 — U.S. Treasury, government and agency 8,800 280 305 8,775 — States and political subdivisions 437 68 1 504 — Foreign governments 397 36 18 415 — Commercial mortgage-backed 591 29 87 533 9 Residential mortgage-backed (1) 608 32 — 640 — Asset-backed (2) 68 10 1 77 3 Redeemable preferred stock 592 57 2 647 — Total Fixed Maturities 31,201 1,432 740 31,893 12 Equity securities 34 — 2 32 — Total at December 31, 2015 $ 31,235 $ 1,432 $ 742 $ 31,925 $ 12 (1) Includes publicly-traded agency pass-through securities and collateralized mortgage obligations. (2) Includes credit-tranched securities collateralized by sub-prime mortgages and other asset types and credit tenant loans. (3) Amounts represent OTTI losses in AOCI, which were not included in earnings (loss) in accordance with current accounting guidance. The contractual maturities of AFS fixed maturities at September 30, 2016 are shown in the table below. Bonds not due at a single maturity date have been included in the table in the final year of maturity. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Available-for-Sale Fixed Maturities Contractual Maturities at September 30, 2016 Amortized Cost Fair Value (In Millions) Due in one year or less $ 1,361 $ 1,378 Due in years two through five 7,668 8,201 Due in years six through ten 9,855 10,434 Due after ten years 12,950 14,857 Subtotal 31,834 34,870 Commercial mortgage-backed securities 454 396 Residential mortgage-backed securities 519 552 Asset-backed securities 52 61 Redeemable preferred stock 541 601 Total $ 33,400 $ 36,480 The following table shows proceeds from sales, gross gains (losses) from sales and OTTI for AFS fixed maturities during the third quarter and first nine months of 2016 and 2015 : Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 (In Millions) Proceeds from sales $ 1,080 $ 182 $ 2,866 $ 807 Gross gains on sales $ 9 $ 14 $ 94 $ 21 Gross losses on sales $ (1 ) $ (2 ) $ (47 ) $ (7 ) Total OTTI $ (10 ) $ (14 ) $ (35 ) $ (32 ) Non-credit losses recognized in OCI — — — — Credit losses recognized in earnings (loss) $ (10 ) $ (14 ) $ (35 ) $ (32 ) The following table sets forth the amount of credit loss impairments on fixed maturity securities held by the Company at the dates indicated and the corresponding changes in such amounts. Fixed Maturities - Credit Loss Impairments Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 (In Millions) Balances, beginning of period $ (166 ) $ (238 ) $ (198 ) $ (254 ) Previously recognized impairments on securities that matured, paid, prepaid or sold 8 35 65 69 Recognized impairments on securities impaired to fair value this period (1) — — (17 ) — Impairments recognized this period on securities not previously impaired (8 ) (14 ) (16 ) (32 ) Additional impairments this period on securities previously impaired (2 ) — (2 ) — Increases due to passage of time on previously recorded credit losses — — — — Accretion of previously recognized impairments due to increases in expected cash flows — — — — Balances at September 30, $ (168 ) $ (217 ) $ (168 ) $ (217 ) (1) Represents circumstances where the Company determined in the current period that it intends to sell the security or it is more likely than not that it will be required to sell the security before recovery of the security’s amortized cost. Net unrealized investment gains (losses) on fixed maturities and equity securities classified as AFS are included in the consolidated balance sheets as a component of AOCI. The table below presents these amounts as of the dates indicated: September 30, December 31, 2015 (In Millions) AFS Securities: Fixed maturities: With OTTI loss $ 18 $ 16 All other 3,062 676 Equity securities — (2 ) Net Unrealized Gains (Losses) $ 3,080 $ 690 Changes in net unrealized investment gains (losses) recognized in AOCI include reclassification adjustments to reflect amounts realized in Net earnings (loss) for the current period that had been part of OCI in earlier periods. The tables that follow below present a roll-forward of net unrealized investment gains (losses) recognized in AOCI, split between amounts related to fixed maturity securities on which an OTTI loss has been recognized and all other amounts: Net Unrealized Gains (Losses) on Fixed Maturities with OTTI Losses Net DAC Policyholders’ Deferred AOCI Gain (In Millions) Balance, July 1, 2016 $ 15 $ — $ — $ (6 ) $ 9 Net investment gains (losses) arising during the period 2 — — — 2 Reclassification adjustment: Included in Net earnings (loss) 1 — — — 1 Excluded from Net earnings (loss) — — — — — Impact of net unrealized investment gains (losses) on: DAC — — — — — Deferred income taxes — — — (1 ) (1 ) Policyholders’ liabilities — — — — — Balance, September 30, 2016 $ 18 $ — $ — $ (7 ) $ 11 Balance, July 1, 2015 $ 7 $ 1 $ (1 ) $ (3 ) $ 4 Net investment gains (losses) arising during the period 1 — — — 1 Reclassification adjustment: Included in Net earnings (loss) 6 — — — 6 Excluded from Net earnings (loss) — — — — — Impact of net unrealized investment gains (losses) on: DAC — (1 ) — — (1 ) Deferred income taxes — — — (2 ) (2 ) Policyholders’ liabilities — — (1 ) — (1 ) Balance, September 30, 2015 $ 14 $ — $ (2 ) $ (5 ) $ 7 Net DAC Policyholders’ Deferred AOCI Gain (In Millions) Balance, January 1, 2016 $ 16 $ — $ (4 ) $ (5 ) $ 7 Net investment gains (losses) arising during the period (5 ) — — — (5 ) Reclassification adjustment for OTTI losses: Included in Net earnings (loss) 7 — — — 7 Excluded from Net earnings (loss) — — — — — Impact of net unrealized investment gains (losses) on: DAC — — — — — Deferred income taxes — — — (2 ) (2 ) Policyholders’ liabilities — — 4 — 4 Balance, September 30, 2016 $ 18 $ — $ — $ (7 ) $ 11 Balance, January 1, 2015 $ 10 $ — $ — $ (4 ) $ 6 Net investment gains (losses) arising during the period (4 ) — — — (4 ) Reclassification adjustment for OTTI losses: Included in Net earnings (loss) 8 — — — 8 Excluded from Net earnings (loss) — — — — — Impact of net unrealized investment gains (losses) on: DAC — — — — — Deferred income taxes — — — (1 ) (1 ) Policyholders’ liabilities — — (2 ) — (2 ) Balance, September 30, 2015 $ 14 $ — $ (2 ) $ (5 ) $ 7 All Other Net Unrealized Investment Gains (Losses) in AOCI Net DAC Policyholders’ Deferred AOCI Gain (In Millions) Balance, July 1, 2016 $ 3,079 $ (139 ) $ (411 ) $ (886 ) $ 1,643 Net investment gains (losses) arising during the period (17 ) — — — (17 ) Reclassification adjustment: Included in Net earnings (loss) — — — — — Excluded from Net earnings (loss) (1) — — — — — Impact of net unrealized investment gains (losses) on: DAC — 24 — — 24 Deferred income taxes — — — (2 ) (2 ) Policyholders’ liabilities — — 1 — 1 Balance, September 30, 2016 $ 3,062 $ (115 ) $ (410 ) $ (888 ) $ 1,649 Balance, July 1, 2015 $ 1,093 $ (102 ) $ (300 ) $ (243 ) $ 448 Net investment gains (losses) arising during the period 198 — — — 198 Reclassification adjustment: Included in Net earnings (loss) (3 ) — — — (3 ) Excluded from Net earnings (loss) (1) — — — — — Impact of net unrealized investment gains (losses) on: DAC — 32 — — 32 Deferred income taxes — — — (86 ) (86 ) Policyholders’ liabilities — — 24 — 24 Balance, September 30, 2015 $ 1,288 $ (70 ) $ (276 ) $ (329 ) $ 613 (1) Represents “transfers out” related to the portion of OTTI losses during the period that were not recognized in earnings (loss) for securities with no prior OTTI loss. Net DAC Policyholders’ Deferred AOCI Gain (In Millions) Balance, January 1, 2016 $ 674 $ (82 ) $ (213 ) $ (133 ) $ 246 Net investment gains (losses) arising during the period 2,417 — — — 2,417 Reclassification adjustment for OTTI losses: Included in Net earnings (loss) (29 ) — — — (29 ) Excluded from Net earnings (loss) (1) — — — — — Impact of net unrealized investment gains (losses) on: DAC — (33 ) — — (33 ) Deferred income taxes — — — (755 ) (755 ) Policyholders’ liabilities — — (197 ) — (197 ) Balance, September 30, 2016 $ 3,062 $ (115 ) $ (410 ) $ (888 ) $ 1,649 Balance, January 1, 2015 $ 2,231 $ (122 ) $ (368 ) $ (610 ) $ 1,131 Net investment gains (losses) arising during the period (953 ) — — — (953 ) Reclassification adjustment for OTTI losses: Included in Net earnings (loss) 10 — — — 10 Excluded from Net earnings (loss) (1) — — — — — Impact of net unrealized investment gains (losses) on: DAC — 52 — — 52 Deferred income taxes — — — 281 281 Policyholders’ liabilities — — 92 — 92 Balance, September 30, 2015 $ 1,288 $ (70 ) $ (276 ) $ (329 ) $ 613 (1) Represents “transfers out” related to the portion of OTTI losses during the period that were not recognized in earnings (loss) for securities with no prior OTTI loss. The following tables disclose the fair values and gross unrealized losses of the 423 issues at September 30, 2016 and the 810 issues at December 31, 2015 of fixed maturities that are not deemed to be other-than-temporarily impaired, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position for the specified periods at the dates indicated: Less Than 12 Months 12 Months or Longer Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (In Millions) September 30, 2016: Fixed Maturity Securities: Public corporate $ 401 $ 2 $ 170 $ 8 $ 571 $ 10 Private corporate 302 1 270 19 572 20 U.S. Treasury, government and agency 907 20 — — 907 20 States and political subdivisions — — 19 1 19 1 Foreign governments 2 — 51 8 53 8 Commercial mortgage-backed 65 8 207 74 272 82 Residential mortgage-backed 96 — 5 — 101 — Asset-backed — — 8 1 8 1 Redeemable preferred stock — — 13 — 13 — Total $ 1,773 $ 31 $ 743 $ 111 $ 2,516 $ 142 December 31, 2015: Fixed Maturity Securities: Public corporate $ 3,091 $ 129 $ 359 $ 73 $ 3,450 $ 202 Private corporate 1,926 102 184 22 2,110 124 U.S. Treasury, government and agency 3,538 305 — — 3,538 305 States and political subdivisions 19 1 — — 19 1 Foreign governments 73 7 39 11 112 18 Commercial mortgage-backed 67 2 261 85 328 87 Residential mortgage-backed 11 — 29 — 40 — Asset-backed 11 — 17 1 28 1 Redeemable preferred stock 43 — 40 2 83 2 Total $ 8,779 $ 546 $ 929 $ 194 $ 9,708 $ 740 The Company’s investments in fixed maturity securities do not include concentrations of credit risk of any single issuer greater than 10% of the consolidated equity of AXA Equitable, other than securities of the U.S. government, U.S. government agencies, and certain securities guaranteed by the U.S. government. The Company maintains a diversified portfolio of corporate securities across industries and issuers and does not have exposure to any single issuer in excess of 0.3 % of total investments. The largest exposures to a single issuer of corporate securities held at September 30, 2016 and December 31, 2015 were $ 166 million and $157 million , respectively. Corporate high yield securities, consisting primarily of public high yield bonds, are classified as other than investment grade by the various rating agencies, i.e., a rating below Baa3/BBB- or the NAIC designation of 3 (medium grade), 4 or 5 (below investment grade) or 6 (in or near default). At September 30, 2016 and December 31, 2015 , respectively, approximately $ 1,628 million and $1,310 million , or 4.9 % and 4.2% , of the $33,400 million and $31,201 million aggregate amortized cost of fixed maturities held by the Company were considered to be other than investment grade. These securities had net unrealized losses of $ 45 million and $97 million at September 30, 2016 and December 31, 2015 , respectively. At September 30, 2016 and December 31, 2015 , respectively, the $ 111 million and $194 million of gross unrealized losses of twelve months or more were concentrated in commercial mortgage-backed and corporates securities. In accordance with the policy described in Note 2, the Company concluded that an adjustment to earnings for OTTI for these securities was not warranted at either September 30, 2016 or 2015 . At September 30, 2016 and December 31, 2015 , the Company did not intend to sell the securities nor will it likely be required to dispose of the securities before the anticipated recovery of their remaining amortized cost basis. At September 30, 2016 , the carrying value of fixed maturities that were non-income producing for the twelve months preceding that date was $ 6 million. The Company does not originate, purchase or warehouse residential mortgages and is not in the mortgage servicing business. At September 30, 2016 and December 31, 2015 , respectively, the Company owned $ 6 million and $ 7 million in RMBS backed by subprime residential mortgage loans and $ 6 million and $ 6 million in RMBS backed by Alt-A residential mortgage loans. RMBS backed by subprime and Alt-A residential mortgages are fixed income investments supporting General Account liabilities. For the third quarter and first nine months of 2016 and 2015 , investment income is shown net of investment expenses of $ 16 million , $ 47 million, $ 15 million , and $41 million , respectively. At September 30, 2016 and December 31, 2015 , respectively, the amortized cost of the Company’s trading account securities was $ 8,611 million and $6,866 million with respective fair values of $ 8,702 million and $6,805 million . Also at September 30, 2016 and December 31, 2015 , respectively, Other equity investments included the General Account’s investment in Separate Accounts, which had carrying values of $ 65 million and $82 million and costs of $ 49 million and $72 million , as well as other equity securities with carrying values of $ 86 million and $32 million and costs of $ 86 million and $34 million . Net unrealized and realized gains (losses) on trading account equity securities are included in Net investment income (loss) in the consolidated statements of earnings (loss). The table below shows a breakdown of Net investment income from trading account securities during the third quarter and first nine months of 2016 and 2015 : Net investment income (loss) from trading securities Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 (In Millions) Net investment gains (losses) recognized during the period on securities held at the end of the period $ 7 $ (56 ) $ 126 $ (49 ) Net investment gains (losses) recognized on securities sold during the period 1 2 (9 ) 9 Unrealized and realized gains (losses) on trading securities arising during the period 8 (54 ) 117 (40 ) Interest and dividend income from trading securities 34 25 82 53 Net investment income (loss) from trading securities $ 42 $ (29 ) $ 199 $ 13 Mortgage Loans Mortgage loans on real estate are placed on nonaccrual status once management determines the collection of accrued interest is doubtful. Once mortgage loans on real estate are classified as nonaccrual loans, interest income is recognized under the cash basis of accounting and the resumption of the interest accrual would commence only after all past due interest has been collected or the mortgage loan on real estate has been restructured to where the collection of interest is considered likely. At September 30, 2016 and December 31, 2015 , the carrying values of commercial mortgage loans on real estate that had been classified as nonaccrual loans were $ 35 million and $72 million , respectively. Troubled Debt Restructurings The TDR mortgage loan shown in the table below has been modified four times since 2011. The modifications were to extend the maturity from its original maturity of November 5, 2014 to December 5, 2016 and to extend interest only payments through maturity. In November 2015, the recorded investment was reduced by $45 million in conjunction with the sale of the majority of the underlying collateral and $32 million from a charge-off. The remaining $15 million mortgage loan balance reflects the value of the remaining underlying collateral and cash held in escrow, supporting the mortgage loan. Since the fair market value of the underlying real estate and cash held in escrow collateral is the primary factor in determining the allowance for credit losses, modifications of loan terms typically have no direct impact on the allowance for credit losses, and therefore, no impact on the financial statements. Troubled Debt Restructuring - Modifications September 30, 2016 Number of Loans Outstanding Recorded Investment Pre-Modification Post - Modification (In Millions) Commercial mortgage loans 1 15 15 There were no default payments on the above loan during the first nine months of 2016 . Valuation Allowances for Mortgage Loans: Allowance for credit losses for commercial mortgage loans for the first nine months of 2016 and 2015 was as follows: 2016 2015 Allowance for credit losses: (In Millions) Beginning balance, January 1, $ 6 $ 37 Charge-offs — (1 ) Recoveries (2 ) — Provision 4 2 Ending balance, September 30, $ 8 $ 38 September 30, Individually Evaluated for Impairment $ 8 $ 38 There were no allowances for credit losses for agricultural mortgage loans for the first nine months of 2016 and 2015 . The following tables provide information relating to the loan-to-value and debt service coverage ratios for commercial and agricultural mortgage loans at September 30, 2016 and December 31, 2015 , before adjustments for valuation allowance. The values used in these ratio calculations were developed as part of the periodic review of the commercial and agricultural mortgage loan portfolio, which includes an evaluation of the underlying collateral value. Mortgage Loans by Loan-to-Value and Debt Service Coverage Ratios September 30, 2016 Debt Service Coverage Ratio Loan-to-Value Ratio: (2) Greater than 2.0x 1.8x to 2.0x 1.5x to 1.8x 1.2x to 1.5x 1.0x to 1.2x Less than 1.0x Total Mortgage Loans (In Millions) Commercial Mortgage Loans (1) 0% - 50% $ 645 $ 151 $ 46 $ 57 $ — $ — $ 899 50% - 70% 2,644 508 624 818 76 — 4,670 70% - 90% 251 64 132 142 28 46 663 90% plus 33 — 27 15 — — 75 Total Commercial Mortgage Loans $ 3,573 $ 723 $ 829 $ 1,032 $ 104 $ 46 $ 6,307 Agricultural Mortgage Loans (1) 0% - 50% $ 254 $ 137 $ 298 $ 438 $ 275 $ 49 $ 1,451 50% - 70% 130 63 197 347 223 50 1,010 70% - 90% 3 — 2 4 — — 9 90% plus — — — — — — — Total Agricultural Mortgage Loans $ 387 $ 200 $ 497 $ 789 $ 498 $ 99 $ 2,470 Total Mortgage Loans (1) 0% - 50% $ 899 $ 288 $ 344 $ 495 $ 275 $ 49 $ 2,350 50% - 70% 2,774 571 821 1,165 299 50 5,680 70% - 90% 254 64 134 146 28 46 672 90% plus 33 — 27 15 — — 75 Total Mortgage Loans $ 3,960 $ 923 $ 1,326 $ 1,821 $ 602 $ 145 $ 8,777 (1) The debt service coverage ratio is calculated using the most recently reported net operating income results from property operations divided by annual debt service. (2) The loan-to-value ratio is derived from current loan balance divided by the fair market value of the property. The fair market value of the underlying commercial properties is updated annually. Mortgage Loans by Loan-to-Value and Debt Service Coverage Ratios December 31, 2015 Debt Service Coverage Ratio Loan-to-Value Ratio: (2) Greater than 2.0x 1.8x to 2.0x 1.5x to 1.8x 1.2x to1.5x 1.0x to 1.2x Less than 1.0x Total Mortgage Loans (In Millions) Commercial Mortgage Loans (1) 0% - 50% $ 533 $ — $ 102 $ 12 $ 24 $ — $ 671 50% - 70% 1,392 353 741 853 77 — 3,416 70% - 90% 141 — 206 134 124 46 651 90% plus 63 — — 46 — — 109 Total Commercial Mortgage Loans $ 2,129 $ 353 $ 1,049 $ 1,045 $ 225 $ 46 $ 4,847 Agricultural Mortgage Loans (1) 0% - 50% $ 204 $ 116 $ 277 $ 432 $ 256 $ 51 $ 1,336 50% - 70% 146 80 192 298 225 47 988 70% - 90% — — 2 4 — — 6 90% plus — — — — — — — Total Agricultural Mortgage Loans $ 350 $ 196 $ 471 $ 734 $ 481 $ 98 $ 2,330 Total Mortgage Loans (1) 0% - 50% $ 737 $ 116 $ 379 $ 444 $ 280 $ 51 $ 2,007 50% - 70% 1,538 433 933 1,151 302 47 4,404 70% - 90% 141 — 208 138 124 46 657 90% plus 63 — — 46 — — 109 Total Mortgage Loans $ 2,479 $ 549 $ 1,520 $ 1,779 $ 706 $ 144 $ 7,177 (1) The debt service coverage ratio is calculated using the most recently reported net operating income results from property operations divided by annual debt service. (2) The loan-to-value ratio is derived from current loan balance divided by the fair market value of the property. The fair market value of the underlying commercial properties is updated annually. The following table provides information relating to the aging analysis of past due mortgage loans at September 30, 2016 and December 31, 2015 , respectively, before adjustments for valuation allowance. Age Analysis of Past Due Mortgage Loans 30-59 Days 60-89 Days 90 Days or > Total Current Total Financing Receivables Recorded Investment > 90 Days and Accruing (In Millions) September 30, 2016 Commercial $ — $ — $ — $ — $ 6,307 $ 6,307 $ — Agricultural 5 12 19 36 2,434 2,470 19 Total Mortgage Loans $ 5 $ 12 $ 19 $ 36 $ 8,741 $ 8,777 $ 19 December 31, 2015 Commercial $ — $ — $ 30 $ 30 $ 4,817 $ 4,847 $ — Agricultural 12 7 4 23 2,307 2,330 4 Total Mortgage Loans $ 12 $ 7 $ 34 $ 53 $ 7,124 $ 7,177 $ 4 The following table provides information regarding impaired mortgage loans at September 30, 2016 and December 31, 2015 , respectively. Impaired Mortgage Loans Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment (1) Interest Income Recognized (In Millions) September 30, 2016: With no related allowance recorded: Commercial mortgage loans - other $ 15 $ 15 $ — $ 23 $ — Agricultural mortgage loans — — — — — Total $ 15 $ 15 $ — $ 23 $ — With related allowance recorded: Commercial mortgage loans - other $ 28 $ 28 $ (8 ) $ 53 $ 2 Agricultural mortgage loans — — — — — Total $ 28 $ 28 $ (8 ) $ 53 $ 2 December 31, 2015: With no related allowance recorded: Commercial mortgage loans - other $ 46 $ 46 $ — $ 15 $ — Agricultural mortgage loans — — — — — Total $ 46 $ 46 $ — $ 15 $ — With related allowance recorded: Commercial mortgage loans - other $ 63 $ 63 $ (6 ) $ 137 $ 4 Agricultural mortgage loans — — — — — Total $ 63 $ 63 $ (6 ) $ 137 $ 4 (1) Represents a four-quarter average of recorded amortized cost. Derivatives and Offsetting Assets and Liabilities The Company uses derivatives as part of its overall asset/liability risk management primarily to reduce exposures to equity market and interest rate risks. Derivative hedging strategies are designed to reduce these risks from an economic perspective and are all executed within the framework of a “Derivative Use Plan” approved by the NYDFS. Operation of these hedging programs is based on models involving numerous estimates and assumptions, including, among others, mortality, lapse, surrender and withdrawal rates, election rates, fund performance, market volatility and interest rates. A wide range of derivative contracts are used in these hedging programs, including exchange traded equity, currency and interest rate futures contracts, total return and/or other equity swaps, interest rate swap and floor contracts, bond and bond-index total return swaps, swaptions, variance swaps, equity options as well as bond and repo transactions to support the hedging, that collectively are managed in an effort to reduce the economic impact of unfavorable changes in guaranteed benefits’ exposures attributable to movements in capital markets. Derivatives utilized to hedge exposure to Variable Annuities with Guarantee Features The Company has issued and continues to offer certain variable annuity products with GMDB, GMIB and GIB features. The Company had previously issued certain variable annuity products with GWBL, GMWB and GMAB features (collectively, “GWBL and Other Features”). The risk associated with the GMDB feature is that under-performance of the financial markets could result in GMDB benefits, in the event of death, being higher than what accumulated policyholders’ account balances would support. The risk associated with the GMIB feature is that under-performance of the financial markets could result in the present value of GMIB benefits, in the event of annuitization, being higher than what accumulated policyholders’ account balances would support, taking into account the relationship between current annuity purchase rates and the GMIB guaranteed annuity purchase rates. The risk associated with the GIB and GWBL and Other Features is that under-performance of the financial markets could result in the GIB and GWBL and Other Features’ benefits being higher than what accumulated policyholders’ account balances would support. For GMDB, GMIB, GIB and GWBL and Other Features, the Company retains certain risks including basis, credit spread and some volatility risk and risk associated with actual versus expected assumptions for mortality, lapse and surrender, withdrawal and contractholder election rates, among other things. The derivative contracts are managed to correlate with changes in the value of the GMDB, GMIB, GIB and GWBL and Other Features that result from financial markets movements. A portion of exposure to realized equity volatility is hedged using equity options and variance swaps and a portion of exposure to credit risk is hedged using total return swaps on fixed income indices. Additionally, the Company is party to total return swaps for which the reference U.S. Treasury securities are contemporaneously purchased from the market and sold to the swap counterparty. As these transactions result in a transfer of control of the U.S. Treasury securities to the swap counterparty, the Company derecognizes these securities with consequent gain or loss from the sale. The Company has also purchased reinsurance contracts to mitigate the risks associated with GMDB features and the impact of potential market fluctuations on future policyholder elections of GMIB features contained in certain annuity contracts issued by the Company. The Company has in place a hedge program utilizing interest rate swaps to partially protect the overall profitability of future variable annuity sales against declining interest rates. Derivatives utilized to hedge crediting rate exposure on SCS, SIO, MSO and IUL products/investment options The Company hedges crediting rates in the SCS variable annuity, SIO in the EQUI-VEST ® variable annuity series, MSO in the variable life insurance products and IUL insurance products. These products permit the contract owner to participate in the performance of an index, ETF or commodity price movement up to a cap for a set period of time. They also contain a protection feature, in which the Company will absorb, up to a certain percentage, the loss of value in an index, ETF or commodity price, which varies by product segment. In order to support the returns associated with these features, the Company enters into derivative contracts whose payouts, in combination with fixed income investments, emulate those of the index, ETF or commodity price, subject to caps and buffers. Derivatives utilized to hedge risks associated with interest margins on Interest Sensitive Life and Annuity Contracts and interest-rate risk arising from commercial mortgage loans Margins or “spreads” on interest-sensitive life insurance and annuity contracts are affected by interest rate fluctuations as the yield on portfolio investments, primarily fixed maturities, is intended to support required payments under these contracts, including interest rates credited to their policy and contract holders. From time to time the Company uses interest rate swaptions and other instruments to reduce the risk associated with minimum guarantees on these interest-sensitive contracts. The Company originates non-recourse commercial real estate mortgage loans, the terms of which may result in short term economic interest rate risk between loan commitment and funding. The company uses forward interest-rate swaps to protect against interest rate fluctuations during this period, which are disposed at loan funding. Realized gains and losses from the disposition are amortized over the life of the loan. Derivatives utilized to hedge equity market risks associated with the General Account’s seed money investments in Separate Accounts, retail mutual funds and Separate Account fee revenue fluctuations The Company’s General Account seed money investments in Separate Account equity funds and retail mutual funds exposes the Company to market risk, including equity market risk, which is partially hedged through equity-index futures contracts to minimize such risk. Periodically, the Company enters into futures on equity indices to mitigate the impact on net earnings from Separate Account fee revenue fluctuations due to movements in the equity markets. These positions partially cover fees expected to be earned from the Company’s Separate Account products. Derivatives utilized for General Account Investment Portfolio Beginning in the second quarter of 2013, the Company implemented a strategy in its General Account investment portfolio to replicate the credit exposure of fixed maturity securities otherwise permissible under its investment guidelines through the sale of CDSs. Under the terms of these swaps, the Company receives quarterly fixed premiums that, together with any initial amount paid or received at trade inception, replicate the credit spread otherwise currently obtainable by purchasing the referenced entity’s bonds of similar maturity. These credit derivatives generally have remaining terms of five years or less and are recorded at fair value with changes in fair value, including the yield component that emerges from initial amounts paid or received, reported in Net investment income (loss). The Company manages its credit exposure taking into consideration both cash and derivatives based positions and selects the reference entities in its replicated credit exposures in a manner consistent with its selection of fixed maturities. In addition, the Company has transacted the sale of CDSs exclusively in single name reference entities of investment grade credit quality and with counterparties subject to collateral posting requirements. If there is an event of default by the reference entity or other such credit event as defined under the terms of the swap contract, the Company is obligated to perform under the credit derivative and, at the counterparty’s option, either pay the referenced amount of the contract less an auction-determined recovery amount or pay the referenced amount of the contract and receive in return the defaulted or similar security of the reference entity for recovery by sale at the contract settlement auction. To date, there have been no events of default or circumstances indicative of a deterioration in the credit quality of the named referenced entities to require or suggest that the Company will have to perform under these CDSs. The maximum potential amount of future payments the Company could be required to make under these credit derivatives is limited to the par value of the referenced securities which is the dollar-equivalent of the derivative notional amount. The Standard North American CDS Contract (“SNAC”) under which the Company executes these CDS sales transactions does not contain recourse provisions for recovery of amounts paid under the credit derivative. Periodically, the Company purchases TIPS and other sovereign bonds, both inflation linked and non-inflation linked, as General Account investments and enters into asset or cross-currency basis swaps, to result in payment of the given bond’s coupons and principal at maturity in the bond’s specified currency to the swap counterparty, in return for fixed dollar amounts. These |
CLOSED BLOCK
CLOSED BLOCK | 9 Months Ended |
Sep. 30, 2016 | |
Closed Block Disclosure [Abstract] | |
Closed Block | CLOSED BLOCK The excess of Closed Block liabilities over Closed Block assets (adjusted to exclude the impact of related amounts in AOCI) represents the expected maximum future post-tax earnings from the Closed Block that would be recognized in income from continuing operations over the period the policies and contracts in the Closed Block remain in force. As of January 1, 2001, AXA Equitable has developed an actuarial calculation of the expected timing of AXA Equitable’s Closed Block’s earnings. If the actual cumulative earnings from the Closed Block are greater than the expected cumulative earnings, only the expected earnings will be recognized in net income. Actual cumulative earnings in excess of expected cumulative earnings at any point in time are recorded as a policyholder dividend obligation because they will ultimately be paid to Closed Block policyholders as an additional policyholder dividend unless offset by future performance that is less favorable than originally expected. If a policyholder dividend obligation has been previously established and the actual Closed Block earnings in a subsequent period are less than the expected earnings for that period, the policyholder dividend obligation would be reduced (but not below zero). If, over the period the policies and contracts in the Closed Block remain in force, the actual cumulative earnings of the Closed Block are less than the expected cumulative earnings, only actual earnings would be recognized in income from continuing operations. If the Closed Block has insufficient funds to make guaranteed policy benefit payments, such payments will be made from assets outside the Closed Block. Many expenses related to Closed Block operations, including amortization of DAC, are charged to operations outside of the Closed Block; accordingly, net revenues of the Closed Block do not represent the actual profitability of the Closed Block operations. Operating costs and expenses outside of the Closed Block are, therefore, disproportionate to the business outside of the Closed Block. Summarized financial information for the Closed Block follows: September 30, December 31, (In Millions) CLOSED BLOCK LIABILITIES: Future policy benefits, policyholders’ account balances and other $ 7,206 $ 7,363 Policyholder dividend obligation 216 81 Other liabilities 45 100 Total Closed Block liabilities 7,467 7,544 ASSETS DESIGNATED TO THE CLOSED BLOCK: Fixed maturities, available for sale, at fair value (amortized cost of $3,950 and $4,426) 4,237 4,599 Mortgage loans on real estate 1,594 1,575 Policy loans 850 881 Cash and other invested assets 444 49 Other assets 172 258 Total assets designated to the Closed Block 7,297 7,362 Excess of Closed Block liabilities over assets designated to the Closed Block 170 182 Amounts included in accumulated other comprehensive income (loss): Net unrealized investment gains (losses), net of deferred income tax (expense) benefit of $(29) and $(36) and policyholder dividend obligation of $(216) and $(81) 53 67 Maximum Future Earnings To Be Recognized From Closed Block Assets and Liabilities $ 223 $ 249 Closed Block revenues and expenses were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 (In Millions) REVENUES: Premiums and other income $ 55 $ 59 $ 177 $ 194 Net investment income (loss) 96 88 270 279 Net investment gains (losses) — 5 1 4 Total revenues 151 152 448 477 BENEFITS AND OTHER DEDUCTIONS: Policyholders’ benefits and dividends 131 154 404 450 Other operating costs and expenses 1 1 3 2 Total benefits and other deductions 132 155 407 452 Net revenues (loss) before income taxes 19 (3 ) 41 25 Income tax (expense) benefit (7 ) 1 (15 ) (9 ) Net Revenues (Losses) $ 12 $ (2 ) $ 26 $ 16 Reconciliation of the policyholder dividend obligation follows: Nine Months Ended September 30, 2016 2015 (In Millions) Balances, beginning of year $ 81 $ 201 Unrealized investment gains (losses), net of DAC 135 (73 ) Balances, End of Period $ 216 $ 128 |
GMDB, GMIB, GIB, GWBL AND OTHER
GMDB, GMIB, GIB, GWBL AND OTHER FEATURES AND NO LAPSE GUARANTEE FEATURES | 9 Months Ended |
Sep. 30, 2016 | |
Variable Annuity Contracts-GMDB GMIB And GWBL [Abstract] | |
GMDB, GMIB, GWBL and No Lapse Guarantee Features | GMDB, GMIB, GIB, GWBL AND OTHER FEATURES AND NO LAPSE GUARANTEE FEATURES A) Variable Annuity Contracts – GMDB, GMIB, GIB and GWBL and Other Features The Company has certain variable annuity contracts with GMDB, GMIB, GIB and GWBL and other features in-force that guarantee one of the following: • Return of Premium: the benefit is the greater of current account value or premiums paid (adjusted for withdrawals); • Ratchet: the benefit is the greatest of current account value, premiums paid (adjusted for withdrawals), or the highest account value on any anniversary up to contractually specified ages (adjusted for withdrawals); • Roll-Up: the benefit is the greater of current account value or premiums paid (adjusted for withdrawals) accumulated at contractually specified interest rates up to specified ages; • Combo: the benefit is the greater of the ratchet benefit or the roll-up benefit, which may include either a five year or an annual reset; or • Withdrawal: the withdrawal is guaranteed up to a maximum amount per year for life. The following table summarizes the GMDB and GMIB liabilities, before reinsurance ceded, reflected in the Balance Sheet in future policy benefits and other policyholders’ liabilities: GMDB GMIB Total (In Millions) Balance at January 1, 2016 $ 2,986 $ 5,297 $ 8,283 Paid guarantee benefits (280 ) (249 ) (529 ) Other changes in reserve 491 1,170 1,661 Balance at September 30, 2016 $ 3,197 $ 6,218 $ 9,415 Balance at January 1, 2015 $ 1,729 $ 5,644 $ 7,373 Paid guarantee benefits (229 ) (45 ) (274 ) Other changes in reserve 413 784 1,197 Balance at September 30, 2015 $ 1,913 $ 6,383 $ 8,296 Related GMDB reinsurance ceded amounts were: Nine Months Ended September 30, 2016 2015 (In Millions) Balance, beginning of year $ 1,430 $ 832 Paid guarantee benefits (137 ) (108 ) Other changes in reserve 253 193 Balance, End of Period $ 1,546 $ 917 The GMIB reinsurance contracts are considered derivatives and are reported at fair value. The September 30, 2016 values for variable annuity contracts in-force on such date with GMDB and GMIB features are presented in the following table. For contracts with the GMDB feature, the net amount at risk in the event of death is the amount by which the GMDB benefits exceed related account values. For contracts with the GMIB feature, the net amount at risk in the event of annuitization is the amount by which the present value of the GMIB benefits exceeds related account values, taking into account the relationship between current annuity purchase rates and the GMIB guaranteed annuity purchase rates. Since variable annuity contracts with GMDB guarantees may also offer GMIB guarantees in the same contract, the GMDB and GMIB amounts listed are not mutually exclusive: Return of Premium Ratchet Roll-Up Combo Total (Dollars In Millions) GMDB: Account values invested in: General Account $ 13,552 $ 124 $ 74 $ 233 $ 13,983 Separate Accounts $ 40,144 $ 8,857 $ 3,420 $ 33,935 $ 86,356 Net amount at risk, gross $ 252 $ 190 $ 2,318 $ 16,366 $ 19,126 Net amount at risk, net of amounts reinsured $ 252 $ 133 $ 1,576 $ 7,021 $ 8,982 Average attained age of contractholders 51.3 65.7 72.2 66.9 55.2 Percentage of contractholders over age 70 9.2 % 36.6 % 59.7 % 40.0 % 17.1 % Range of contractually specified interest rates N/A N/A 3%-6% 3%-6.5% 3%-6.5% GMIB: Account values invested in: General Account N/A N/A $ 35 $ 335 $ 370 Separate Accounts N/A N/A $ 17,592 $ 39,968 $ 57,560 Net amount at risk, gross N/A N/A $ 1,322 $ 8,850 $ 10,172 Net amount at risk, net of amounts reinsured N/A N/A $ 406 $ 2,289 $ 2,695 Weighted average years remaining until annuitization N/A N/A 1.6 1.4 1.4 Range of contractually specified interest rates N/A N/A 3%-6% 3%-6.5% 3%-6.5% At September 30, 2016 , the Company had reinsured with non-affiliates and affiliates in the aggregate approximately 3.9% and 49.1% , respectively, of its current exposure to the GMDB obligation on annuity contracts in-force and, subject to certain maximum amounts or caps in any one period, approximately 17.9% and 55.6% , respectively, of its current liability exposure resulting from the GMIB feature. The liability for SCS, SIO, MSO, IUL, GIB and GWBL and Other Features, not included above, was $ 950 million and $494 million at September 30, 2016 and December 31, 2015 , respectively, which are accounted for as embedded derivatives. The liability for GIB, GWBL and Other Features reflects the present value of expected future payments (benefits) less the fees attributable to these features over a range of market consistent economic scenarios. The liability for SCS, SIO, MSO and IUL reflects the present value of expected future payments assuming the segments are held to maturity. • Variable Annuity In-force management. The Company continues to proactively manage its variable annuity in-force business. Beginning in 2012, the Company initiated several programs to purchase from certain contractholders the GMDB and GMIB riders contained in their Accumulator® contracts. Most recently in December 2015, the Company initiated a program to give contractholders an option to elect a full buyout of their rider or a new partial ( 50% ) buyout of their rider. The Company believes that the buyback programs are mutually beneficial to both the Company and contractholders who no longer need or want the GMDB or GMIB rider. To reflect the actual payments and reinsurance credit received from the December 2015 buyback that completed in March 2016 the Company recognized a $4 million increase to Net earnings in the first nine months of 2016. For additional information, see “Accounting for VA Guarantee Features” in Note 2. B) Separate Account Investments by Investment Category Underlying GMDB and GMIB Features The total account values of variable annuity contracts with GMDB and GMIB features include amounts allocated to the guaranteed interest option, which is part of the General Account and variable investment options that invest through Separate Accounts in variable insurance trusts. The following table presents the aggregate fair value of assets, by major investment category, held by Separate Accounts that support variable annuity contracts with GMDB and GMIB benefits and guarantees. The investment performance of the assets impacts the related account values and, consequently, the net amount of risk associated with the GMDB and GMIB benefits and guarantees. Since variable annuity contracts with GMDB benefits and guarantees may also offer GMIB benefits and guarantees in each contract, the GMDB and GMIB amounts listed are not mutually exclusive: Investment in Variable Insurance Trust Mutual Funds September 30, December 31, (In Millions) GMDB: Equity $ 68,655 $ 66,230 Fixed income 2,630 2,686 Balanced 14,718 15,350 Other 353 374 Total $ 86,356 $ 84,640 GMIB: Equity $ 45,339 $ 43,874 Fixed income 1,772 1,819 Balanced 10,296 10,696 Other 153 170 Total $ 57,560 $ 56,559 C) Hedging Programs for GMDB and GMIB Features Beginning in 2003, AXA Equitable established a program intended to hedge certain risks associated first with the GMDB feature and, beginning in 2004, with the GMIB feature of the Accumulator ® series of variable annuity products. The program has also been extended to cover other guaranteed benefits as they have been made available. This program utilizes derivative contracts, such as exchange-traded equity, currency, and interest rate futures contracts, total return and/or equity swaps, interest rate swap and floor contracts, swaptions, variance swaps as well as equity options, that collectively are managed in an effort to reduce the economic impact of unfavorable changes in guaranteed benefits’ exposures attributable to movements in the equity and fixed income markets. At the present time, this program hedges certain economic risks on products sold, to the extent such risks are not reinsured. At September 30, 2016 , the total account value and net amount at risk of the hedged variable annuity contracts were $ 51,698 million and $ 7,862 million, respectively, with the GMDB feature and $38,172 million and $3,808 million, respectively, with the GMIB and GIB feature. These programs do not qualify for hedge accounting treatment. Therefore, gains (losses) on the derivatives contracts used in these programs, including current period changes in fair value, are recognized in net investment income (loss) in the period in which they occur, and may contribute to earnings (loss) volatility. D) Variable and Interest-Sensitive Life Insurance Policies - No Lapse Guarantee The no lapse guarantee feature contained in variable and interest-sensitive life insurance policies keeps them in force in situations where the policy value is not sufficient to cover monthly charges then due. The no lapse guarantee remains in effect so long as the policy meets a contractually specified premium funding test and certain other requirements. The following table summarizes the no lapse guarantee liabilities reflected in the Balance Sheet in Future policy benefits and other policyholders’ liabilities and the related reinsurance ceded: Direct Liability Reinsurance Ceded Net (In Millions) Balance at January 1, 2016 $ 1,084 $ (539 ) $ 545 Other changes in reserves 36 (66 ) (30 ) Balance at September 30, 2016 $ 1,120 $ (605 ) $ 515 Balance at January 1, 2015 $ 964 $ (555 ) $ 409 Other changes in reserves 116 38 154 Balance at September 30, 2015 $ 1,080 $ (517 ) $ 563 |
FAIR VALUE DISCLOSURES
FAIR VALUE DISCLOSURES | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures | FAIR VALUE DISCLOSURES Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The accounting guidance established a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value, and identifies three levels of inputs that may be used to measure fair value: Level 1 Unadjusted quoted prices for identical instruments in active markets. Level 1 fair values generally are supported by market transactions that occur with sufficient frequency and volume to provide pricing information on an ongoing basis. Level 2 Observable inputs other than Level 1 prices, such as quoted prices for similar instruments, quoted prices in markets that are not active, and inputs to model-derived valuations that are directly observable or can be corroborated by observable market data. Level 3 Unobservable inputs supported by little or no market activity and often requiring significant management judgment or estimation, such as an entity’s own assumptions about the cash flows or other significant components of value that market participants would use in pricing the asset or liability. The Company uses unadjusted quoted market prices to measure the fair value of instruments that are actively traded in financial markets. In cases where quoted market prices are not available, fair values are measured using present value or other valuation techniques. The fair value determinations are made at a specific point in time, based on available market information and judgments about the financial instrument, including estimates of the timing and amount of expected future cash flows and the credit standing of counterparties. Such adjustments do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument, nor do they consider the tax impact of the realization of unrealized gains or losses. In many cases, the fair value cannot be substantiated by direct comparison to independent markets, nor can the disclosed value be realized in immediate settlement of the instrument. Management is responsible for the determination of the value of investments carried at fair value and the supporting methodologies and assumptions. Under the terms of various service agreements, the Company often utilizes independent valuation service providers to gather, analyze, and interpret market information and derive fair values based upon relevant methodologies and assumptions for individual securities. These independent valuation service providers typically obtain data about market transactions and other key valuation model inputs from multiple sources and, through the use of widely accepted valuation models, provide a single fair value measurement for individual securities for which a fair value has been requested. As further described below with respect to specific asset classes, these inputs include, but are not limited to, market prices for recent trades and transactions in comparable securities, benchmark yields, interest rate yield curves, credit spreads, quoted prices for similar securities, and other market-observable information, as applicable. Specific attributes of the security being valued also are considered, including its term, interest rate, credit rating, industry sector, and when applicable, collateral quality and other security- or issuer-specific information. When insufficient market observable information is available upon which to measure fair value, the Company either will request brokers knowledgeable about these securities to provide a non-binding quote or will employ internal valuation models. Fair values received from independent valuation service providers and brokers and those internally modeled or otherwise estimated are assessed for reasonableness. Assets and liabilities measured at fair value on a recurring basis are summarized below. Fair value measurements also are required on a non-recurring basis for certain assets, including goodwill equity real estate held for production of income, and mortgage loans on real estate, only when an OTTI or other event occurs. When such fair value measurements are recorded, they must be classified and disclosed within the fair value hierarchy. At September 30, 2016 and December 31, 2015 , no assets were required to be measured at fair value on a non-recurring basis. Fair Value Measurements at September 30, 2016 Level 1 Level 2 Level 3 Total (In Millions) Assets: Investments: Fixed maturities, available-for-sale: Public Corporate $ — $ 14,204 $ 56 $ 14,260 Private Corporate — 6,652 683 7,335 U.S. Treasury, government and agency — 12,357 — 12,357 States and political subdivisions — 480 44 524 Foreign governments — 394 — 394 Commercial mortgage-backed — 22 374 396 Residential mortgage-backed (1) — 552 — 552 Asset-backed (2) — 36 25 61 Redeemable preferred stock 238 363 — 601 Subtotal 238 35,060 1,182 36,480 Other equity investments 75 — 6 81 Assets of consolidated VIEs: Investments 29 173 3 205 Other asset - derivatives — 4 — 4 Trading securities 499 8,203 — 8,702 Other invested assets: Short-term investments — 297 — 297 Swaps — 77 — 77 Credit Default Swaps — — — — Futures — — — — Options — 742 — 742 Floors — 23 — 23 Currency Contracts — (11 ) — (11 ) Subtotal — 1,128 — 1,128 Cash equivalents 2,696 — — 2,696 Segregated securities — 492 — 492 GMIB reinsurance contract asset — — 13,113 13,113 Separate Accounts’ assets 107,335 2,296 315 109,946 Total Assets $ 110,872 $ 47,356 $ 14,619 $ 172,847 Liabilities GWBL and Other Features’ liability $ — $ — $ 301 $ 301 SCS, SIO, MSO and IUL indexed features’ liability — 649 — 649 Liabilities of consolidated VIEs - Derivatives — 4 — 4 Contingent payment arrangements — — 18 18 Total Liabilities $ — $ 653 $ 319 $ 972 (1) Includes publicly-traded agency pass-through securities and collateralized obligations. (2) Includes credit-tranched securities collateralized by sub-prime mortgages and other asset types and credit tenant loans. Fair Value Measurements at December 31, 2015 Level 1 Level 2 Level 3 Total (In Millions) Assets: Investments: Fixed maturities, available-for-sale: Public Corporate $ — $ 13,345 $ 31 $ 13,376 Private Corporate — 6,537 389 6,926 U.S. Treasury, government and agency — 8,775 — 8,775 States and political subdivisions — 459 45 504 Foreign governments — 414 1 415 Commercial mortgage-backed — 30 503 533 Residential mortgage-backed (1) — 640 — 640 Asset-backed (2) — 37 40 77 Redeemable preferred stock 258 389 — 647 Subtotal 258 30,626 1,009 31,893 Other equity investments 97 — 49 146 Trading securities 654 6,151 — 6,805 Other invested assets: Short-term investments — 369 — 369 Swaps — 230 — 230 Credit Default Swaps — (22 ) — (22 ) Futures (1 ) — — (1 ) Options — 390 — 390 Floors — 61 — 61 Currency Contracts — 1 — 1 Subtotal (1 ) 1,029 — 1,028 Cash equivalents 2,150 — — 2,150 Segregated securities — 565 — 565 GMIB reinsurance contract asset — — 10,570 10,570 Separate Accounts’ assets 104,058 2,964 313 107,335 Total Assets $ 107,216 $ 41,335 $ 11,941 $ 160,492 Liabilities: GWBL and Other Features’ liability $ — $ — $ 184 $ 184 SCS, SIO, MSO and IUL indexed features’ liability — 310 — 310 Contingent payment arrangements — — 31 31 Total Liabilities $ — $ 310 $ 215 $ 525 (1) Includes publicly-traded agency pass-through securities and collateralized obligations. (2) Includes credit-tranched securities collateralized by sub-prime mortgages and other asset types and credit tenant loans. At September 30, 2016 and December 31, 2015 , respectively, the fair value of public fixed maturities is approximately $ 28,510 million and $24,216 million or approximately 17.9% and 16.2% of the Company’s total assets measured at fair value on a recurring basis (excluding GMIB reinsurance contracts and segregated securities measured at fair value on a recurring basis). The fair values of the Company’s public fixed maturity securities are generally based on prices obtained from independent valuation service providers and for which the Company maintains a vendor hierarchy by asset type based on historical pricing experience and vendor expertise. Although each security generally is priced by multiple independent valuation service providers, the Company ultimately uses the price received from the independent valuation service provider highest in the vendor hierarchy based on the respective asset type, with limited exception. To validate reasonableness, prices also are internally reviewed by those with relevant expertise through comparison with directly observed recent market trades. Consistent with the fair value hierarchy, public fixed maturity securities validated in this manner generally are reflected within Level 2, as they are primarily based on observable pricing for similar assets and/or other market observable inputs. If the pricing information received from independent valuation service providers is not reflective of market activity or other inputs observable in the market, the Company may challenge the price through a formal process in accordance with the terms of the respective independent valuation service provider agreement. If as a result it is determined that the independent valuation service provider is able to reprice the security in a manner agreed as more consistent with current market observations, the security remains within Level 2. Alternatively, a Level 3 classification may result if the pricing information then is sourced from another vendor, non-binding broker quotes, or internally-developed valuations for which the Company’s own assumptions about market-participant inputs would be used in pricing the security. At September 30, 2016 and December 31, 2015 , respectively, the fair value of private fixed maturities is approximately $ 7,970 million and $7,677 million or approximately 5.0 % and 5.1% of the Company’s total assets measured at fair value on a recurring basis. The fair values of the Company’s private fixed maturities are determined from prices obtained from independent valuation service providers. Prices not obtained from an independent valuation service provider are determined by using a discounted cash flow model or a market comparable company valuation technique. In certain cases, these models use observable inputs with a discount rate based upon the average of spread surveys collected from private market intermediaries who are active in both primary and secondary transactions, taking into account, among other factors, the credit quality and industry sector of the issuer and the reduced liquidity associated with private placements. Generally, these securities have been reflected within Level 2. For certain private fixed maturities, the discounted cash flow model or a market comparable company valuation technique may also incorporate unobservable inputs, which reflect the Company’s own assumptions about the inputs market participants would use in pricing the asset. To the extent management determines that such unobservable inputs are significant to the fair value measurement of a security, a Level 3 classification generally is made. As disclosed in Note 3, at September 30, 2016 and December 31, 2015 , respectively, the net fair value of freestanding derivative positions is approximately $833 million and $659 million or approximately 73.7 % and 64.1% of Other invested assets measured at fair value on a recurring basis. The fair values of the Company’s derivative positions are generally based on prices obtained either from independent valuation service providers or derived by applying market inputs from recognized vendors into industry standard pricing models. The majority of these derivative contracts are traded in the OTC derivative market and are classified in Level 2. The fair values of derivative assets and liabilities traded in the OTC market are determined using quantitative models that require use of the contractual terms of the derivative instruments and multiple market inputs, including interest rates, prices, and indices to generate continuous yield or pricing curves, including OIS curves and volatility factors, which then are applied to value the positions. The predominance of market inputs is actively quoted and can be validated through external sources or reliably interpolated if less observable. If the pricing information received from independent valuation service providers is not reflective of market activity or other inputs observable in the market, the Company may challenge the price through a formal process in accordance with the terms of the respective independent valuation service provider agreement. If, as a result, it is determined that the independent valuation service provider is able to reprice the derivative instrument in a manner agreed as more consistent with current market observations, the position remains within Level 2. Alternatively, a Level 3 classification may result if the pricing information then is sourced from another vendor, non-binding broker quotes, or internally-developed valuations for which the Company’s own assumptions about market-participant inputs would be used in pricing the security. At September 30, 2016 and December 31, 2015 , respectively, investments classified as Level 1 comprise approximately 69.6 % and 71.8% of assets measured at fair value on a recurring basis and primarily include redeemable preferred stock, trading securities, cash equivalents and Separate Accounts assets. Fair value measurements classified as Level 1 include exchange-traded prices of fixed maturities, equity securities and derivative contracts, and net asset values for transacting subscriptions and redemptions of mutual fund shares held by Separate Accounts. Cash equivalents classified as Level 1 include money market accounts, overnight commercial paper and highly liquid debt instruments purchased with an original maturity of three months or less, and are carried at cost as a proxy for fair value measurement due to their short-term nature. At September 30, 2016 and December 31, 2015 , respectively, investments classified as Level 2 comprise approximately 29.4 % and 27.3% of assets measured at fair value on a recurring basis and primarily include U.S. government and agency securities and certain corporate debt securities, such as public and private fixed maturities. As market quotes generally are not readily available or accessible for these securities, their fair value measures are determined utilizing relevant information generated by market transactions involving comparable securities and often are based on model pricing techniques that effectively discount prospective cash flows to present value using appropriate sector-adjusted credit spreads commensurate with the security’s duration, also taking into consideration issuer-specific credit quality and liquidity. Segregated securities classified as Level 2 are U.S. Treasury Bills segregated by AB in a special reserve bank custody account for the exclusive benefit of brokerage customers, as required by Rule 15c3-3 of the Exchange Act and for which fair values are based on quoted yields in secondary markets. Observable inputs generally used to measure the fair value of securities classified as Level 2 include benchmark yields, reported secondary trades, issuer spreads, benchmark securities and other reference data. Additional observable inputs are used when available, and as may be appropriate, for certain security types, such as prepayment, default, and collateral information for the purpose of measuring the fair value of mortgage- and asset-backed securities. At September 30, 2016 and December 31, 2015 , respectively, approximately $ 579 million and $673 million of AAA-rated mortgage- and asset-backed securities are classified as Level 2 for which the observability of market inputs to their pricing models is supported by sufficient, albeit more recently contracted, market activity in these sectors. Certain AXA Equitable products such as the SCS and EQUI-VEST variable annuity products and the IUL product, as well as the MSO feature available in some AXA Equitable life contracts, offer investment options that permit the contract owner to participate in the performance of an index, ETF or commodity price. These investment options (depending on the product and index selected) can have 1, 3 or 5 year terms and permit participation in the index, ETF or commodity price up to a segment-specific declared maximum rate. Under certain conditions that vary by product, e.g. holding these segments for the full term, these segments also shield policyholders from some or all negative investment performance associated with these indices, ETFs or commodity prices. These investment options have defined formulaic liability amounts, and the current values of the option component of these segment reserves are accounted for as Level 2 embedded derivatives. The fair values of these embedded derivatives are based on prices obtained from independent valuation service providers. At September 30, 2016 and December 31, 2015 , respectively, investments classified as Level 3 comprise approximately 0.9 % and 0.9% of assets measured at fair value on a recurring basis and primarily include CMBS and corporate debt securities, such as private fixed maturities. Determinations to classify fair value measures within Level 3 of the valuation hierarchy generally are based upon the significance of the unobservable factors to the overall fair value measurement. Included in the Level 3 classification at September 30, 2016 and December 31, 2015 , respectively, were approximately $ 143 million and $119 million of fixed maturities with indicative pricing obtained from brokers that otherwise could not be corroborated to market observable data. The Company applies various due-diligence procedures, as considered appropriate, to validate these non-binding broker quotes for reasonableness, based on its understanding of the markets, including use of internally-developed assumptions about inputs a market participant would use to price the security. In addition, approximately $ 399 million and $543 million of mortgage- and asset-backed securities, including CMBS, are classified as Level 3 at September 30, 2016 and December 31, 2015 , respectively. The Company utilizes prices obtained from an independent valuation service vendor to measure fair value of CMBS securities. The Company also issues certain benefits on its variable annuity products that are accounted for as derivatives and are also considered Level 3. The GMWB feature allows the policyholder to withdraw at minimum, over the life of the contract, an amount based on the contract’s benefit base. The GWBL feature allows the policyholder to withdraw, each year for the life of the contract, a specified annual percentage of an amount based on the contract’s benefit base. The GMAB feature increases the contract account value at the end of a specified period to a GMAB base. The GIB feature provides a lifetime annuity based on predetermined annuity purchase rates if and when the contract account value is depleted. This lifetime annuity is based on predetermined annuity purchase rates applied to a GIB base. Level 3 also includes the GMIB reinsurance contract asset which is accounted for as derivative contracts. The GMIB reinsurance contract asset’s fair value reflects the present value of reinsurance premiums and recoveries and risk margins over a range of market consistent economic scenarios while the GIB and GWBL and Other Features related liability reflects the present value of expected future payments (benefits) less fees, adjusted for risk margins, attributable to the GIB and GWBL and Other Features over a range of market-consistent economic scenarios. The valuations of both the GMIB reinsurance contract asset and GIB and GWBL and Other Features’ liability incorporate significant non-observable assumptions related to policyholder behavior, risk margins and projections of equity Separate Account funds. The credit risks of the counterparty and of the Company are considered in determining the fair values of its GMIB reinsurance contract asset and GIB and GWBL and Other Features’ liability positions, respectively, after taking into account the effects of collateral arrangements. Incremental adjustment to the swap curve, adjusted for non-performance risk, is made to the resulting fair values of the GMIB reinsurance contract asset to reflect change in the claims-paying ratings of counterparties to the reinsurance treaties. After giving consideration to collateral arrangements, the Company reduced the fair value of its GMIB reinsurance contract asset by $ 204 million and $123 million at September 30, 2016 and December 31, 2015 , respectively, to recognize incremental counterparty non-performance risk. The unadjusted swap curve was determined to reflect a level of general swap market counterparty risk; therefore, no adjustment was made for purpose of determining the fair value of the GIB and GWBL and Other Features’ liability embedded derivative at September 30, 2016 . Equity and fixed income volatilities were modeled to reflect the current market volatility. The Company’s Level 3 liabilities include contingent payment arrangements associated with acquisitions in 2010, 2013 and 2014 by AB. At each reporting date, AB estimates the fair values of the contingent consideration expected to be paid based upon probability-weighted AUM and revenue projections, using unobservable market data inputs, which are included in Level 3 of the valuation hierarchy. In the first nine months of 2016 , AFS fixed maturities with fair values of $ 50 million were transferred out of Level 3 and into Level 2 principally due to the availability of trading activity and/or market observable inputs to measure and validate their fair values. In addition, AFS fixed maturities with Fair Value of $ 29 million were transferred from Level 2 into the Level 3 classification. During the third quarter of 2016, one of AB’s private securities went public and, due to a trading restriction period, $ 24 million was transferred from a Level 3 to a Level 2 classification. These transfers in the aggregate represent approximately 0.5% of total equity at September 30, 2016 . In the first nine months of 2015 , AFS fixed maturities with fair values of $112 million were transferred out of Level 3 and into Level 2 principally due to the availability of trading activity and/or market observable inputs to measure and validate their fair values. In addition, AFS fixed maturities with Fair Value of $31 million were transferred from Level 2 in to the Level 3 classification. These transfers in the aggregate represent approximately 0.8% of total equity at September 30, 2015 . The table below presents a reconciliation for all Level 3 assets and liabilities for the third quarter and first nine months of 2016 and 2015 , respectively: Level 3 Instruments Fair Value Measurements Corporate State and Political Sub- divisions Foreign Govts Commercial Mortgage- backed Residential Mortgage- backed Asset- backed (In Millions) Balance, July 1, 2016 $ 495 $ 45 $ — $ 402 $ — $ 26 Total gains (losses), realized and unrealized, included in: Earnings (loss) as: Net investment income (loss) — — — 1 — — Investment gains (losses), net 1 — — (12 ) — — Subtotal 1 — — (11 ) — — Other comprehensive income (loss) (2 ) — — 10 — (1 ) Purchases 256 — — — — — Issues — — — — — — Sales (21 ) (1 ) — (21 ) — — Transfers into Level 3 (1) 11 — — — — — Transfers out of Level 3 (1) (1 ) — — (6 ) — — Balance, September 30, 2016 $ 739 $ 44 $ — $ 374 $ — $ 25 Balance, July 1, 2015 $ 373 $ 46 $ — $ 627 $ 1 $ 48 Total gains (losses), realized and unrealized, included in: Earnings (loss) as: Net investment income (loss) — — — 1 — — Investment gains (losses), net — — — (7 ) — — Subtotal — — — (6 ) — — Other comprehensive income (loss) (2 ) — — 12 — (3 ) Purchases 96 — — — — — Issues — — — — — — Sales 2 (1 ) — (63 ) — — Transfers into Level 3 (1) — — — — — — Transfers out of Level 3 (1) (25 ) — — (30 ) — — Balance, September 30, 2015 $ 444 $ 45 $ — $ 540 $ 1 $ 45 Corporate State and Political Sub- divisions Foreign Govts Commercial Mortgage- backed Residential Mortgage- backed Asset- backed (In Millions) Balance, January 1, 2016 $ 420 $ 45 $ 1 $ 503 $ — $ 40 Total gains (losses), realized and unrealized, included in: Earnings (loss) as: Net investment income (loss) (1 ) — — 1 — — Investment gains (losses), net 1 — — (36 ) — — Subtotal — — — (35 ) — — Other comprehensive income (loss) 8 — — (1 ) — 1 Purchases 399 — — — — — Issues — — — — — — Sales (89 ) (1 ) — (81 ) — (7 ) Settlements — — — — — — Transfers into Level 3 (1) 29 — — — — — Transfers out of Level 3 (1) (28 ) — (1 ) (12 ) — (9 ) Balance, September 30, 2016 $ 739 $ 44 $ — $ 374 $ — $ 25 Balance, January 1, 2015 $ 380 $ 47 $ — $ 715 $ 2 $ 53 Total gains (losses), realized and unrealized, included in: Earnings (loss) as: Net investment income (loss) 1 — — 1 — — Investment gains (losses), net 1 — — (27 ) — — Subtotal 2 — — (26 ) — — Other comprehensive income (loss) (3 ) (1 ) — 46 — (3 ) Purchases 129 — — — — — Sales (33 ) (1 ) — (145 ) (1 ) (5 ) Transfers into Level 3 (1) 31 — — — — — Transfers out of Level 3 (1) (62 ) — — (50 ) — — Balance, September 30, 2015 $ 444 $ 45 $ — $ 540 $ 1 $ 45 Redeemable Preferred Stock Other Equity Investments (2) GMIB Reinsurance Asset Separate Accounts Assets GWBL and Other Features’ Liability Contingent Payment Arrangement (In Millions) Balance, July 1, 2016 $ — $ 18 $ 13,311 $ 307 $ 330 $ 31 Total gains (losses), realized and unrealized, included in: Earnings (loss) as: Net investment income (loss) — — — — — — Investment gains (losses), net — — — 7 — — Increase (decrease) in the fair value of the reinsurance contract asset — — (235 ) — — — Policyholders’ benefits — — — — (88 ) — Subtotal — — (235 ) 7 (88 ) — Other comprehensive income (loss) — — — — — — Purchases (3) — — 56 3 59 11 Issues — — — — — — Sales (4) — — (19 ) — — — Settlements (5) — — — (1 ) — (24 ) Activity related to consolidated VIEs — 15 — — — — Transfers into Level 3 (1) — — — — — — Transfers out of Level 3 (1) — (24 ) — (1 ) — — Balance, September 30, 2016 $ — $ 9 $ 13,113 $ 315 $ 301 $ 18 Balance, July 1, 2015 $ — $ 51 $ 9,951 $ 283 $ 109 $ (42 ) Total gains (losses), realized and unrealized, included in: Earnings (loss) as: Net investment income (loss) — — — — — — Investment gains (losses), net — — — 8 — — Increase (decrease) in the fair value of the reinsurance contract asset — — 2,214 — — — Policyholders’ benefits — — — — 68 — Subtotal — — 2,214 8 68 — Other comprehensive income (loss) — — — — — — Purchases (3) — — 58 5 48 — Issues — — — — — — Sales (4) — — (9 ) — — — Settlements (5) — — — (1 ) — 3 Transfers into Level 3 (1) — — — 1 — — Transfers out of Level 3 (1) — — — (1 ) — — Balance, September 30, 2015 $ — $ 51 $ 12,214 $ 295 $ 225 $ (39 ) Redeemable Other (2) GMIB Separate GWBL Contingent (In Millions) Balance, January 1, 2016 $ — $ 17 $ 10,570 $ 313 $ 184 $ 31 Total gains (losses), realized and unrealized, included in: Earnings (loss) as: Net investment income (loss) — — — — — — Investment gains (losses), net — (1 ) — 19 — — Increase (decrease) in the fair value of the reinsurance contracts — — 2,426 — — — Policyholders’ benefits — — — — (48 ) — Subtotal — (1 ) 2,426 19 (48 ) — Other comprehensive income (loss) — — — — — — Purchases (3) — — 167 12 165 11 Issues — — — — — — Sales (4) — — (50 ) — — — Settlements (5) — — — (6 ) — (24 ) Activity related to consolidated VIEs — 17 — — — — Transfers into Level 3 (1) — — — 1 — — Transfers out of Level 3 (1) — (24 ) — (24 ) — — Balance, September 30, 2016 $ — $ 9 $ 13,113 $ 315 $ 301 $ 18 Balance, January 1, 2015 $ — $ 61 $ 10,711 $ 260 $ 128 $ (42 ) Total gains (losses), realized and unrealized, included in: Earnings (loss) as: Net investment income (loss) — 5 — — — (2 ) Investment gains (losses), net — 5 — 25 — — Increase (decrease) in the fair value of the reinsurance contracts — — 1,363 — — — Policyholders’ benefits — — — — (37 ) — Subtotal — 10 1,363 25 (37 ) (2 ) Other comprehensive income (loss) — (2 ) — — — — Purchases (3) — — 171 17 134 — Issues — — — — — — Sales (4) — (18 ) (31 ) (2 ) — — Settlements (5) — — — (3 ) — 5 Transfers into Level 3 (1) — — — — — — Transfers out of Level 3 (1) — — — (2 ) — — Balance, September 30, 2015 $ — $ 51 $ 12,214 $ 295 $ 225 $ (39 ) (1) Transfers into/out of Level 3 classification are reflected at beginning-of-period fair values. (2) Includes Level 3 amounts for Trading securities and consolidated VIE investments. (3) For the GMIB reinsurance contract asset and GWBL and other features reserves, represents premiums. (4) For the GMIB reinsurance contract asset, represents recoveries from reinsurers and for GWBL and other features reserves represents benefits paid. (5) For contingent payment arrangements, it represents change in estimates. The table below details changes in unrealized gains (losses) for the third quarter and first nine months of 2016 and 2015 by category for Level 3 assets and liabilities still held at September 30, 2016 and 2015 , respectively: Earnings (Loss) Investment Gains (Losses), Net Increase (Decrease) in the Fair Value of the Reinsurance Contract Asset OCI Policy- holders’ Benefits (In Millions) Level 3 Instruments Third Quarter 2016 Held at September 30, 2016: Change in unrealized gains (losses): Fixed maturities, available-for-sale: Corporate $ — $ — $ — $ — State and political subdivisions — — — — Commercial mortgage-backed — — 10 — Asset-backed — — (1 ) — Other fixed maturities, available-for-sale — — — — Subtotal $ — $ — $ 9 $ — GMIB reinsurance contracts — (198 ) — — Separate Accounts’ assets 6 — — — GWBL and other features’ liability — — — (29 ) Total $ 6 $ (198 ) $ 9 $ (29 ) Level 3 Instruments Third Quarter 2015 Held at September 30, 2015: Change in unrealized gains (losses): Fixed maturities, available-for-sale: Corporate $ — $ — $ (2 ) $ — State and political subdivisions — — — — Commercial mortgage-backed — — 11 — Asset-backed — — (3 ) — Other fixed maturities, available-for-sale — — — — Subtotal $ — $ — $ 6 $ — GMIB reinsurance contracts — 2,263 — — Separate Accounts’ assets 8 — — — GWBL and other features’ liability — — — 116 Total $ 8 $ 2,263 $ 6 $ 116 Earnings (Loss) Net Investment Income (Loss) Investment Gains (Losses), Net Increase (Decrease) in Fair Value of Reinsurance Contracts OCI Policy- holders’ Benefits (In Millions) Level 3 Instruments First Nine Months of 2016 Held at September 30, 2016: Change in unrealized gains (losses): Fixed maturities, available-for-sale: Corporate $ — $ — $ — $ 9 $ — State and political subdivisions — — — 1 — Commercial mortgage-backed — — — (6 ) — Asset-backed — — — 1 — Other fixed maturities, available-for-sale — — — — — Subtotal $ — $ — $ — $ 5 $ — GMIB reinsurance contracts — — 2,543 — — Separate Accounts’ assets — 19 — — — GWBL and other features’ liability — — — — 117 Total $ — $ 19 $ 2,543 $ 5 $ 117 Level 3 Instruments First Nine Months of 2015 Held at September 30, 2015: Change in unrealized gains (losses): Fixed maturities, available-for-sale: Corporate $ — $ — $ — $ (3 ) $ — State and political subdivisions — — — (1 ) — Commercial mortgage-backed — — — 44 — Asset-backed — — — (3 ) — Other fixed maturities, available-for-sale — — — — — Subtotal $ — $ — $ — $ 37 $ — Other equity investments — — — — — GMIB reinsurance contracts — — 1,503 — — Separate Accounts’ assets — 25 — — — GWBL and other features’ liability — — — — 97 Total $ — $ 25 $ 1,503 $ 37 $ 97 The following tables disclose quantitative information about Level 3 fair value measurements by category for assets and liabilities as of September 30, 2016 and December 31, 2015 , respectively. Quantitative Information about Level 3 Fair Value Measurements September 30, 2016 Fair Value Valuation Technique Significant Unobservable Input Range (In Millions) Assets: Investments: Fixed maturities, available-for-sale: Corporate $ 53 Matrix pricing model Spread over the industry-specific benchmark yield curve 75 bps - 565 bps 475 Market comparable companies EBITDA multiples 4.9x- 22.2x Asset-backed 2 Matrix pricing model Spread over U.S. Treasury curve 25 bps - 687 bps Separate Accounts’ assets 292 Third party appraisal Capitalization rate 4.8% Exit capitalization rate 5.8% Discount rate 6.6% 6 Discounted cash flow Spread over |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 9 Months Ended |
Sep. 30, 2016 | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |
Employee Benefit Plans | EMPLOYEE BENEFIT PLANS AXA Equitable AXA Equitable sponsors the AXA Equitable 401(k) Plan, a qualified defined contribution plan for eligible employees and financial professionals. The plan provides for both a company contribution and a discretionary profit-sharing contribution. Expenses associated with this 401(k) Plan were $3 million , $10 million , $2 million and $18 million in the third quarter and first nine months of 2016 and 2015, respectively. AXA Equitable also sponsors the AXA Equitable Retirement Plan (the “AXA Equitable QP”), a frozen qualified defined benefit pension plan covering eligible employees and financial professionals. Effective December 31, 2015, primary liability for the obligations of AXA Equitable under the AXA Equitable QP was transferred from AXA Equitable to AXA Financial under the terms of an Assumption Agreement. AXA Equitable remains secondarily liable for its obligations under the AXA Equitable QP and would recognize such liability in the event AXA Financial does not perform under the terms of the Assumption Agreement. AB AB maintains the Profit Sharing Plan for Employees of AB, a tax-qualified retirement plan for U.S. employees. Employer contributions under this plan are discretionary and generally are limited to the amount deductible for Federal income tax purposes. AB also maintains a qualified, non-contributory, defined benefit retirement plan covering current and former employees who were employed by AB in the United States prior to October 2, 2000 (the “AB Plan”). Benefits under the AB Plan are based on years of credited service and average final base salary. In the first nine months of 2016 , no cash contributions were made by AB to the AB Plan. Based on the funded status of the AB plan at September 30, 2016 , no minimum contribution is required to be made in 2016 under ERISA, as amended by the Pension Act, but management is currently evaluating if it will make contributions for the remainder of 2016. The funding policy for the AB Plan is to satisfy its funding obligations each year in an amount not less than the minimum required by the ERISA, as amended by the Pension Act, and not greater than the maximum it can deduct for Federal income tax purposes. Components of net periodic pension expense for the Company’s qualified plans ( third quarter and first nine months of 2016 net periodic pension expense is solely related to the AB Plan) were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 (In Millions) Net Periodic Pension Expense: (Qualified Plans) Service cost $ — $ 2 $ — $ 6 Interest cost 2 23 4 69 Expected return on assets (1 ) (39 ) (4 ) (117 ) Net amortization — 29 — 89 Actuarial (gain) loss — 1 — 1 Net Periodic Pension Expense $ 1 $ 16 $ — $ 48 |
SHARE-BASED COMPENSATION PROGRA
SHARE-BASED COMPENSATION PROGRAMS | 9 Months Ended |
Sep. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation Programs | SHARE-BASED COMPENSATION PROGRAMS AXA and AXA Financial sponsor various share-based compensation plans for eligible employees and financial professionals of AXA Financial and its subsidiaries. AB also sponsors its own unit option plans for certain of its employees. Compensation costs for the third quarter and first nine months of 2016 and 2015 for share-based payment arrangements as further described herein are as follows: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 (In Thousands) Performance Shares $ 2,953 $ 3,200 $ 14,774 $ 14,226 Stock Options 110 117 825 623 AB Stock Options 200 2,900 200 9,300 AB Restricted Units 1,200 — 6,400 — Other compensation plans (1) 154 (64 ) (759 ) 488 Total Compensation Expenses $ 4,617 $ 6,153 $ 21,440 $ 24,637 (1) Other compensation plans include Restricted Stock, Stock Appreciation Rights and AXA Miles. Performance Shares 2016 Grant . On June 6, 2016, under the terms of the Performance Share Plan, AXA awarded approximately 1.93 million unearned performance shares to employees of AXA Equitable. The extent to which 2016-2018 cumulative performance targets measuring the performance of AXA and the insurance related businesses of AXA Financial Group are achieved will determine the number of performance shares earned, which may vary between 0% and 130% of the number of performance shares at stake. The performance shares earned during this performance period will vest and be settled on the fourth anniversary of the award date. The plan will settle in AXA ordinary shares to all participants. In the third quarter and first nine months of 2016 , the expense associated with the June 6, 2016 grant of performance shares were approximately $ 1 million and $ 9 million, respectively. Settlement of 2013 Grant in 2016. On March 22, 2016, share distributions totaling approximately $55 million were made to active and former AXA Equitable employees in settlement of 2,293,998 performance shares earned under the terms of the AXA Performance Share Plan 2013. Stock Options 2016 Grant . On June 6, 2016, 576,169 options to purchase AXA ordinary shares were granted to employees of AXA Equitable under the terms of the Stock Option Plan at an exercise price of 21.52 euros. All of those options have a five -year graded vesting schedule, with one-third vesting on each of the third, fourth, and fifth anniversaries of the grant date. Of the total options awarded on June 6, 2016, 316,097 are further subject to conditional vesting terms that require the AXA ordinary share price to outperform the Euro Stoxx Insurance Index over a specified period. All of the options granted on June 6, 2016 have a ten -year term. The weighted average grant date fair value per option award was estimated at 1.85 euros using a Black-Scholes options pricing model with modification to measure the value of the conditional vesting feature. Key assumptions used in the valuation included expected volatility of 26.6% , a weighted average expected term of 8.1 years, an expected dividend yield of 6.49% and a risk-free interest rate of 0.33% . The total fair value of these options (net of expected forfeitures) of approximately $1 million is charged to expense over the shorter of the vesting term or the period up to the date at which the participant becomes retirement eligible. In the third quarter and first nine months of 2016 , the Company recognized expenses associated with the June 6, 2015 grant of options of approximately $31,000 and $558,000 , respectively. 2016 AXA Shareplan. In 2016, eligible employees of participating AXA Financial subsidiaries were offered the opportunity to purchase newly issued AXA ordinary shares, subject to plan limits, under the terms of AXA Shareplan 2016. Eligible employees could have reserved a share purchase during the reservation period from August 29, 2016 through September 9, 2016 and could have canceled their reservation or elected to make a purchase for the first time during the retraction/subscription period from October 17, 2016 through October 19, 2016 . The U.S. dollar purchase price was determined by applying the U.S. dollar/Euro forward exchange rate on October 13, 2016 to the discounted formula subscription price in Euros. “Investment Option A” permitted participants to purchase AXA ordinary shares at a 20% formula discounted price of 15.53 euros/per share. “Investment Option B” permitted participants to purchase AXA ordinary shares at an 8.63 % formula discounted price of 17.73 euros/per share on a leveraged basis with a guaranteed return of initial investment plus a portion of any appreciation in the undiscounted value of the total shares purchased. For purposes of determining the amount of any appreciation, the AXA ordinary share price will be measured over a fifty-two week period preceding the scheduled end date of AXA Shareplan 2016, which is July 1, 2021 . All subscriptions became binding and irrevocable on October 19, 2016 . AB Long-term Incentive Compensation Plans. During the third quarter and first nine months of 2016 , AB purchased 2.0 million and 5.8 million Holding units for $ 45 million and $129 million respectively (on a trade date basis). These amounts reflect open-market purchases of 2.0 million and 5.7 million Holding Units for $ 45 million and $127 million , respectively with the remainder relating to purchases of Holding units from employees to allow them to fulfill statutory tax withholding requirements at the time of distribution of long-term incentive compensation awards. During the third quarter and first nine months of 2015, AB purchased 3.0 million and 3.8 million Holding units for $ 82 million and $ 103 million respectively (on a trade date basis). These amounts reflect open-market purchases of 3.0 million and 3.7 million Holding Units for $ 82 million and $ 101 million , respectively with the remainder relating to purchases of Holding units from employees to allow them to fulfill statutory tax withholding requirements at the time of distribution of long-term incentive compensation awards. During the first nine months of 2016 and 2015 , AB granted to employees and eligible Directors 0.7 million and 0.3 million restricted Holding awards. In the first nine months of 2016 and 2015 , AB used Holding units repurchased during the period and newly issued Holding units to fund the restricted Holding unit awards. During the first nine months of 2016 and 2015 , AB Holding issued 0.1 million and 0.5 million AB Holding Units, respectively, upon exercise of options to buy AB Holding Units. AB Holding used the proceeds of $2.0 million and $9.0 million , respectively, received from employees as payment in cash for the exercise price to purchase the equivalent number of newly-issued AB Units. Other Compensation Plans 2012 AXA Miles. On March 16, 2016, AXA ordinary share distributions totaling approximately $4 million were made to active and former AXA Equitable employees in settlement of 164,150 AXA Miles earned under the terms of the AXA Miles Program 2012. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Income taxes for the interim periods ended September 30, 2016 and 2015 have been computed using an estimated annual effective tax rate. This rate is revised, if necessary, at the end of each successive interim period to reflect the current estimate of the annual effective tax rate. During the second quarter of 2015, the Company reached a settlement with the IRS on the appeal of proposed adjustments to the Company’s 2004 and 2005 Federal corporate income tax returns. The impact of this settlement on the Company’s financial statements and unrecognized tax benefits in first nine months of 2015 was a tax benefit of $77 million . |
LITIGATION
LITIGATION | 9 Months Ended |
Sep. 30, 2016 | |
Litigation Settlement [Abstract] | |
Litigation | LITIGATION There have been no new material legal proceedings and no material developments in the specific litigations or regulatory matters previously reported in the Company’s Notes to Consolidated Financial Statements for the year ended December 31, 2015 , except as set forth below: Insurance Litigation A lawsuit was filed in the United States District Court of the District of New Jersey in July 2011, entitled Mary Ann Sivolella v. AXA Equitable Life Insurance Company and AXA Equitable Funds Management Group, LLC (“AXA Equitable FMG”) (“Sivolella Litigation”). The lawsuit was filed derivatively on behalf of eight funds. The lawsuit seeks recovery under Section 36(b) of the Investment Company Act of 1940, as amended (the “Investment Company Act”), for alleged excessive fees paid to AXA Equitable and AXA Equitable FMG for investment management services. In November 2011, plaintiff filed an amended complaint, adding claims under Sections 47(b) and 26(f) of the Investment Company Act, as well as a claim for unjust enrichment. In addition, plaintiff purports to file the lawsuit as a class action in addition to a derivative action. In the amended complaint, plaintiff seeks recovery of the alleged overpayments, rescission of the contracts, restitution of all fees paid, interest, costs, attorney fees, fees for expert witnesses and reserves the right to seek punitive damages where applicable. In December 2011, AXA Equitable and AXA Equitable FMG filed a motion to dismiss the amended complaint. In May 2012, the Plaintiff voluntarily dismissed her claim under Section 26(f) seeking restitution and rescission under Section 47(b) of the 1940 Act. In September 2012, the Court denied the defendants’ motion to dismiss as it related to the Section 36(b) claim and granted the defendants’ motion as it related to the unjust enrichment claim. In January 2013, a second lawsuit was filed in the United States District Court of the District of New Jersey entitled Sanford et al. v. AXA Equitable FMG (“Sanford Litigation”). The lawsuit was filed derivatively on behalf of eight funds, four of which are named in the Sivolella lawsuit as well as four new funds, and seeks recovery under Section 36(b) of the Investment Company Act for alleged excessive fees paid to AXA Equitable FMG for investment management services. In light of the similarities of the allegations in the Sivolella and Sanford Litigations, the parties and the Court agreed to consolidate the two lawsuits. In April 2013, the plaintiffs in the Sivolella and Sanford Litigations amended the complaints to add additional claims under Section 36(b) of the Investment Company Act for recovery of alleged excessive fees paid to AXA Equitable FMG in its capacity as administrator of EQ Advisors Trust. The Plaintiffs seek recovery of the alleged overpayments, or alternatively, rescission of the contract and restitution of the excessive fees paid, interest, costs and fees. In January 2015, defendants filed a motion for summary judgment as well as various motions to strike certain of the Plaintiffs’ experts in the Sivolella and Sanford Litigations. Also in January 2015, two Plaintiffs in the Sanford Litigation filed a motion for partial summary judgment relating to the EQ/Core Bond Index Portfolio as well as motions in limine to bar admission of certain documents and preclude the testimony of one of defendants’ experts. In August 2015, the Court denied Plaintiffs’ motions in limine and also denied both parties motions for summary judgment. The non-jury trial commenced in January 2016 and testimony concluded in February 2016. Closing arguments occurred in June 2016 following post-trial briefing. In August 2016, the Court issued its decision in favor of AXA Equitable and AXA Equitable FMG, finding that the Plaintiffs had failed to meet their burden to demonstrate that AXA Equitable and AXA Equitable FMG breached their fiduciary duty in violation of Section 36(b) or show any actual damages. In September 2016, the Plaintiffs filed a motion to amend the trial opinion and to amend or make new findings of fact and/or conclusions of law. AXA Equitable’s and AXA Equitable FMG’s response to this motion was filed in October 2016. In April 2014, a lawsuit was filed in the United States District Court for the Southern District of New York, entitled Andrew Yale, on behalf of himself and all others similarly situated v. AXA Life Insurance Company F/K/A AXA Equitable Life Insurance Company . The lawsuit is a putative class action on behalf of all persons and entities that, between 2011 and March 11, 2014, directly or indirectly, purchased, renewed or paid premiums on life insurance policies issued by AXA Equitable (the “Policies”). The complaint alleges that AXA Equitable did not disclose in its New York statutory annual statements or elsewhere that the collateral for certain reinsurance transactions with affiliated reinsurance companies was supported by parental guarantees, an omission that allegedly caused AXA Equitable to misrepresent its “financial condition” and “legal reserve system.” The lawsuit seeks recovery under Section 4226 of the New York Insurance Law of all premiums paid by the class for the Policies during the relevant period. In June 2014, AXA Equitable filed a motion to dismiss the complaint on procedural grounds, which was denied in October 2014. In February 2015, plaintiffs substituted two new named plaintiffs and the action is now entitled Ross v. AXA Equitable Life Insurance Company . In July 2015, the Court granted AXA Equitable’s motion to dismiss for lack of subject matter jurisdiction. In August 2015, plaintiffs filed a notice of appeal. In April 2015, the same plaintiffs’ law firm filed a second action in the United States District Court for the Southern District of New York on behalf of a putative class of variable annuity holders with “Guaranteed Benefits Insurance Riders,” entitled Calvin W. Yarbrough, on behalf of himself and all others similarly situated v. AXA Equitable Life Insurance Company . The new action covers the same class period, makes substantially the same allegations, and seeks the same relief (return of all premium paid by class members) as the first action on behalf of life insurance policyholders. In October 2015, the Court, on its own, dismissed the Yarbrough litigation on similar grounds as Ross. In October 2015, plaintiff filed a notice of appeal. In November 2015, plaintiffs filed a motion to consolidate the Ross and Yarbrough appeals. In December 2015, the Second Circuit denied the motion to consolidate but ordered that the appeals be heard together before a single panel of judges. Briefing on the appeals was complete as of September 2016. A lawsuit was filed in the Supreme Court of the State of New York, County of Westchester, Commercial Division (“New York state court”) in June 2014, entitled Jessica Zweiman, Executrix of the Estate of Anne Zweiman, on behalf of herself and all others similarly situated v. AXA Equitable Life Insurance Company . The lawsuit is a putative class action on behalf of “all persons who purchased variable annuities from AXA Equitable which subsequently became subject to the ATM Strategy, and who suffered injury as a result thereof.” Plaintiff asserts that AXA Equitable breached the variable annuity contracts by implementing the volatility management tool. The lawsuit seeks unspecified damages. In July 2014, AXA Equitable filed a notice of removal to the United States District Court for the Southern District of New York. In September 2015, the New York federal district court granted AXA Equitable’s motion to dismiss the Complaint. In October 2015, plaintiff filed a notice of appeal. In February 2016, plaintiff voluntarily dismissed her appeal. In November 2014, one of the plaintiff’s law firms in Zweiman filed a separate lawsuit entitled Arlene Shuster, on behalf of herself and all others similarly situated v. AXA Equitable Life Insurance Company in the Superior Court of New Jersey, Camden County (“New Jersey state court”). This lawsuit is a putative class action on behalf of “all AXA [Equitable] variable life insurance policyholders who allocated funds from their Policy Accounts to investments in AXA’s Separate Accounts, which were subsequently subjected to volatility-management strategy, and who suffered injury as a result thereof” and asserts a claim for breach of contract similar to the claim in Zweiman. In February 2016, the New Jersey State Court dismissed the Complaint. In March 2016, plaintiff filed a notice of appeal. In August 2015, another of the plaintiff’s law firms in Zweiman filed a third lawsuit entitled Richard T. O’Donnell, on behalf of himself and all other similarly situated v. AXA Equitable Life Insurance Company in Connecticut Superior Court, Judicial Division of New Haven (“Connecticut state court”). This lawsuit purports to cover the same class definition, makes substantially the same allegations, and seeks the same relief as in Zweiman. In November 2015, the Connecticut federal district court transferred the action to the United States District Court for the Southern District of New York. _______________________________________________________________________________ Although the outcome of litigation and regulatory matters generally cannot be predicted with certainty, management intends to vigorously defend against the allegations made by the plaintiffs in the actions described above and believes that the ultimate resolution of the matters described therein involving AXA Equitable and/or its subsidiaries should not have a material adverse effect on the consolidated financial position of AXA Equitable. Management cannot make an estimate of loss, if any, or predict whether or not any of the matters described above will have a material adverse effect on AXA Equitable’s consolidated results of operations in any particular period. In addition to the matters described above, a number of lawsuits, claims, assessments and regulatory inquiries have been filed or commenced against life and health insurers and asset managers in the jurisdictions in which AXA Equitable and its respective subsidiaries do business. These actions and proceedings involve, among other things, insurers’ sales practices, alleged agent misconduct, alleged failure to properly supervise agents, contract administration, product design, features and accompanying disclosure, cost of insurance increases, the use of captive reinsurers, payments of death benefits and the reporting and escheatment of unclaimed property, alleged breach of fiduciary duties, alleged mismanagement of client funds and other matters. In addition, a number of lawsuits, claims, assessments and regulatory inquiries have been filed or commenced against businesses in the jurisdictions in which AXA Equitable and its subsidiaries do business, including actions and proceedings related to alleged discrimination, alleged breaches of fiduciary duties in connection with qualified pension plans and other general business-related matters. Some of the matters have resulted in the award of substantial fines and judgments, including material amounts of punitive damages, or in substantial settlements. Courts, juries and regulators often have substantial discretion in awarding damage awards and fines, including punitive damages. AXA Equitable and its subsidiaries from time to time are involved in such actions and proceedings. While the ultimate outcome of such matters cannot be predicted with certainty, in the opinion of management no such matter is likely to have a material adverse effect on AXA Equitable’s consolidated financial position or results of operations. However, it should be noted that the frequency of large damage awards, including large punitive damage awards and regulatory fines that bear little or no relation to actual economic damages incurred, continues to create the potential for an unpredictable judgment in any given matter. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended |
Sep. 30, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure | RELATED PARTY TRANSACTIONS The Company has cost sharing and service agreements with AXA Financial, its subsidiaries and affiliates including agreements related to personnel services, employee benefits, facilities, supplies, equipment, technology, professional development arrangements and investment management services. In addition, the Company has selling agreements to sell insurance products on behalf of affiliates or to have affiliates sell the Company’s insurance products. AB and FMG also act as investment managers for some of the Company’s affiliates and receive investment management fee revenue for the services provided. There have been no material changes in these service agreements from those disclosed in the 2015 Form 10-K. At September 30, 2016 and December 31, 2015 , AXA Equitable’s GMIB reinsurance contract asset with AXA Arizona had carrying values of $ 10,899 million and $8,741 million , respectively, and is reported in Guaranteed minimum income benefit reinsurance contract asset, at fair value in the consolidated balance sheets. Ceded premiums, deposits and fee income to AXA Arizona in the third quarter and first nine months of 2016 and 2015 related to the Annuity, UL and no lapse guarantee riders totaled approximately $ 113 million , $ 329 million, $ 114 million and $337 million , respectively. Ceded claims paid and surrenders in the third quarter and first nine months of 2016 and 2015 were $ 62 million , $ 336 million, $ 39 million and $129 million , respectively. In first quarter 2016, AXA Equitable sold artwork to AXA Financial and recognized a $20 million gain on the sale. AXA Equitable used the proceeds received from this sale to make a $21 million donation to AXA Foundation, Inc. (the “Foundation”). The Foundation was organized for the purpose of distributing grants to various tax-exempt charitable organizations and administering various matching gift programs for AXA Equitable, its subsidiaries and affiliates. In June 2009, AXA Equitable sold real estate property valued at $1,100 million to a non-insurance subsidiary of AXA Financial in exchange for $700 million in cash and $400 million in 8.0% ten year term mortgage notes on the property reported in Loans to affiliates in the consolidated balance sheets. In November 2014, this loan was refinanced and a new $382 million , seven year term loan with an interest rate of 4.0% was issued. In January 2016, the property was sold and a portion of the proceeds was used to repay the $382 million term loan outstanding and a $65 million prepayment penalty. In 2016, AXA Equitable and Saum Sing LLC (“Saum Sing”), an affiliate, formed Broad Vista Partners LLC (“Broad Vista”), AXA Equitable owns 70% and Saum Sing owns 30% of Broad Vista. On June 30, 2016, Broad Vista entered into a real estate joint venture with a third party and AXA Equitable invested approximately $25 million, reported in Other equity investments in the consolidated balance sheets. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 9 Months Ended |
Sep. 30, 2016 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) AOCI represents cumulative gains (losses) on items that are not reflected in earnings (loss). The balances as of September 30, 2016 and 2015 follow: September 30, 2016 2015 (In Millions) Unrealized gains (losses) on investments $ 1,624 $ 645 Foreign currency translation adjustments (55 ) (53 ) Defined benefit pension plans (12 ) (722 ) Total accumulated other comprehensive income (loss) 1,557 (130 ) Less: Accumulated other comprehensive (income) loss attributable to noncontrolling interest 56 52 Accumulated Other Comprehensive Income (Loss) Attributable to AXA Equitable $ 1,613 $ (78 ) The components of OCI, net-of-taxes for the third quarter and first nine months of 2016 and 2015 follow: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 (In Millions) Foreign currency translation adjustments: Foreign currency translation gains (losses) arising during the period $ (1 ) $ (10 ) $ 3 $ (17 ) (Gains) losses reclassified into net earnings (loss) during the period — (1 ) — (2 ) Foreign currency translation adjustment (1 ) (11 ) 3 (19 ) Net unrealized gains (losses) on investments: Net unrealized gains (losses) arising during the period (10 ) 130 1,568 (622 ) (Gains) losses reclassified into net earnings (loss) during the period (1) 1 2 (14 ) 12 Net unrealized gains (losses) on investments (9 ) 132 1,554 (610 ) Adjustments for policyholders’ liabilities, DAC, insurance liability loss recognition and other (13 ) 71 (171 ) 132 Change in unrealized gains (losses), net of adjustments (net of deferred income tax expense (benefit) of $(13), $107, and $751 and $(261) (22 ) 203 1,383 (478 ) Change in defined benefit plans: Less: reclassification adjustments to net earnings (loss) for (2) : Net gain (loss) arising during the period — — — Amortization of net prior service cost included in net periodic cost — 19 — 58 Change in defined benefit plans (net of deferred income tax expense (benefit) of $0, $10, $0, and $31. — 19 — 58 Total other comprehensive income (loss), net of income taxes (23 ) 211 1,386 (439 ) Less: Other comprehensive (income) loss attributable to noncontrolling interest (1 ) 5 (1 ) 10 Other Comprehensive Income (Loss) Attributable to AXA Equitable $ (24 ) $ 216 $ 1,385 $ (429 ) (1) See “Reclassification adjustments” in Note 3. Reclassification amounts presented net of income tax expense (benefit) of $ 13 million , $ 1 million , $ 7 million and $(2) million , for the third quarter and first nine months of 2016 and 2015 , respectively. (2) Reclassification amounts presented net of income tax expense (benefit) of $ 0 million , $ 0 million , $ 6 million and $ 17 million for third quarter and first nine months of 2016 and 2015 , respectively. Investment gains and losses reclassified from AOCI to net earnings (loss) primarily consist of realized gains (losses) on sales and OTTI of AFS securities and are included in Total investment gains (losses), net on the consolidated statements of earnings (loss). Amounts reclassified from AOCI to net earnings (loss) as related to defined benefit plans primarily consist of amortizations of net (gains) losses and net prior service cost (credit) recognized as a component of net periodic cost and reported in Compensation and benefit expenses in the consolidated statements of earnings (loss). Amounts presented in the table above are net of tax. |
COMMITMENT AND CONTINGENT LIABI
COMMITMENT AND CONTINGENT LIABILITIES | 9 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | COMMITMENTS AND CONTINGENT LIABILITIES Restructuring In an effort to further reduce its global real estate footprint, AB completed a comprehensive review of its worldwide office locations and began implementing a global space consolidation plan in 2012. This resulted in the sublease of office space primarily in New York as well as offices in England, Australia and various U.S. locations. In the first nine months of 2016, AB recorded new real estate charges of $25 million relating to the further consolidation of office space at its New York offices. Real estate charges are recorded in Other operating costs and expenses in the Company’s consolidated Statements of earnings (loss). Obligation under funding agreements As a member of the FHLBNY, AXA Equitable has access to collateralized borrowings. It also may issue funding agreements to the FHLBNY. Both the collateralized borrowings and funding agreements would require AXA Equitable to pledge qualified mortgage-backed assets and/or government securities as collateral. AXA Equitable has a capacity with the FHLBNY of $4,000 million . At September 30, 2016 and December 31, 2015 AXA Equitable had $1,495 million and $500 million respectively, of outstanding funding agreements with the FHLBNY. AXA Equitable utilized these funding agreements for asset liability management and spread lending purposes. For other instruments used for asset liability management purposes see “Derivative and offsetting assets and liabilities” included in Note 3. Funding agreements are reported in Policyholders’ account balances in the consolidated balance sheets. Other Commitments AXA Equitable had approximately $18 million of undrawn letters of credit issued in favor of third party beneficiaries primarily related to reinsurance as well as $ 608 million (including $233 million with affiliates) and $1,212 million of commitments under equity financing arrangements to certain limited partnership and existing mortgage loan agreements, respectively, at September 30, 2016 . Effective December 31, 2015, primary liability for the obligations of AXA Equitable under the AXA Equitable QP was transferred from AXA Equitable to AXA Financial under the terms of an Assumption Agreement. AXA Equitable remains secondarily liable for its obligations under the AXA Equitable QP and would recognize such liability in the event AXA Financial does not perform under the terms of the Assumption Agreement. In addition, since December 31, 1999, AXA Financial has legally assumed primary liability from AXA Equitable for all current and future liabilities of AXA Equitable under certain employee benefit plans that provide participants with medical, life insurance, and deferred compensation benefits; AXA Equitable remains secondarily liable. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | SEGMENT INFORMATION The following tables reconcile segment revenues and earnings (loss) from continuing operations before income taxes to total revenues and earnings (loss) as reported on the consolidated statements of earnings (loss) and segment assets to total assets on the consolidated balance sheets. Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 (In Millions) Segment revenues: Insurance (1) $ 1,473 $ 4,983 $ 9,323 $ 7,231 Investment Management (2) 750 738 2,243 2,291 Consolidation/elimination (7 ) (7 ) (19 ) (21 ) Total Revenues $ 2,216 $ 5,714 $ 11,547 $ 9,501 (1) Includes investment expenses charged by AB of approximately $14 million , $39 million , $12 million and $34 million for the third quarter and first nine months of 2016 and 2015 , respectively, for services provided to the Insurance Segment. (2) Intersegment investment advisory and other fees of approximately $21 million , $58 million , $19 million and $55 million for the third quarter and first nine months of 2016 and 2015 , respectively, are included in total revenues of the Investment Management segment. Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 (In Millions) Segment earnings (loss) from continuing operations, before income taxes: Insurance $ (212 ) $ 3,200 $ 3,510 $ 2,271 Investment Management 183 138 490 445 Consolidation/elimination (1 ) 1 — — Total Earnings (Loss) from Continuing Operations, before income taxes $ (30 ) $ 3,339 $ 4,000 $ 2,716 September 30, December 31, (In Millions) Segment assets: Insurance $ 196,468 $ 182,738 Investment Management (1) 12,568 11,895 Consolidation/elimination (2 ) (7 ) Total Assets $ 209,034 $ 194,626 (1) In accordance with SEC regulations, the assets of the Investment Management segment include securities with a fair value of $ 444 million and $460 million which have been segregated in a special reserve bank custody account at September 30, 2016 and December 31, 2015 , respectively, for the exclusive benefit of securities broker-dealer or brokerage customers under the Exchange Act. They also include cash held in several special bank accounts for the exclusive benefit of customers. As of September 30, 2016 and December 31, 2015 , $48 million and $55 million , respectively, of cash were segregated in these bank accounts. |
SIGNIFICANT ACCOUNTING POLICI22
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Accounting for Variable Annuities with GMDB and GMIB Features | Accounting for Variable Annuities with GMDB and GMIB Features Future claims exposure on products with guaranteed minimum death benefit (“GMDB”) and guaranteed minimum income benefit (“GMIB”) features are sensitive to movements in the equity markets and interest rates. The Company has in place various hedging programs utilizing derivatives that are designed to mitigate the impact of movements in equity markets and interest rates. The accounting for these various hedging programs does not qualify for hedge accounting treatment. As a result, changes in the value of the derivatives will be recognized in the period in which they occur while offsetting changes in reserves and deferred policy acquisition costs (“DAC”) will be recognized over time in accordance with policies described in the Company’s Notes to Consolidated Financial Statements for the year ended December 31, 2015 , under “Policyholders’ Account Balances and Future Policy Benefits” and “DAC”. These differences in recognition contribute to earnings volatility. GMIB reinsurance contracts are used to cede to affiliated and non-affiliated reinsurers a portion of the exposure on variable annuity products that offer the GMIB feature. The GMIB reinsurance contracts are accounted for as derivatives and are reported at fair value. Gross reserves for GMIB are calculated on the basis of assumptions related to projected benefits and related contract charges over the lives of the contracts and therefore will not immediately reflect the offsetting impact on future claims exposure resulting from the same capital market and/or interest rate fluctuations that cause gains or losses on the fair value of the GMIB reinsurance contracts. The changes in the fair value of the GMIB reinsurance contracts are recorded in the period in which they occur while offsetting changes in gross reserves and DAC for GMIB are recognized over time in accordance with policies described in the Company’s Notes to Consolidated Financial Statements for the year ended December 31, 2015 under “Policyholders’ Account Balances and Future Policy Benefits” and “DAC”. These differences in recognition contribute to earnings volatility. |
Adoption of New Accounting Pronouncements | Adoption of New Accounting Pronouncements In February 2015, the FASB issued a new consolidation standard that makes targeted amendments to the VIE assessment, including guidance specific to the analysis of fee arrangements and related party relationships, modifies the guidance for the evaluation of limited partnerships and similar entities for consolidation to eliminate the presumption of general partner control, and ends the deferral that had been granted to certain investment companies for applying previous VIE guidance. The Company adopted this new standard beginning January 1, 2016, having elected not to early-adopt in previous interim periods, and applied the guidance using a modified retrospective approach, thereby not requiring the restatement of prior year periods. The Company’s reevaluation of all legal entities under the new standard resulted in identification of additional VIEs and consolidation of certain investment products of the Investment Management segment that were not consolidated in accordance with previous guidance. “See Consolidation of VIEs” below. In May 2015, the FASB issued new guidance related to disclosures for investments in certain entities that calculate net asset value (“NAV”) per share (or its equivalent). Under the new guidance, investments measured at NAV, as a practical expedient for fair value, are excluded from the fair value hierarchy. Removing investments measured using the practical expedient from the fair value hierarchy was intended to eliminate the diversity in practice with respect to the categorization of these investments. The only criterion for categorizing investments in the fair value hierarchy is now the observability of the inputs. The amendment was effective retrospectively for interim and annual periods beginning after December 15, 2015. Implementation of this guidance did not have a material impact on the Company’s consolidated financial statements. In April 2015, the FASB issued new guidance, simplifying the presentation of debt issuance costs, which requires debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying value of the associated debt liability, consistent with the presentation of a debt discount. The new guidance was effective retrospectively for interim and annual periods beginning after December 15, 2015. Implementation of this guidance did not have a material impact on the Company’s consolidated financial statements. In June 2014, the FASB issued new guidance for accounting for share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period. The new guidance was effective for interim and annual periods beginning after December 15, 2015. Implementation of this guidance did not have a material impact on the Company’s consolidated financial statements. |
Future Adoption of New Accounting Pronouncements | Future Adoption of New Accounting Pronouncements In August 2016, the FASB issued new guidance to simplify elements of cash flow classification. The new guidance is intended to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. The new guidance is effective for interim and annual periods beginning after December 15, 2017 and should be applied using a retrospective transition method. Management is currently evaluating the impact that adoption of this guidance will have on the Company’s consolidated financial statements. In June 2016, the FASB issued new guidance related to the accounting for credit losses on financial instruments. The new guidance introduces an approach based on expected losses to estimate credit losses on certain types of financial instruments. It also modifies the impairment model for available-for-sale debt securities and provides for a simplified accounting model for purchased financial assets with credit deterioration since their origination. The new guidance is effective for interim and annual periods beginning after December 15, 2019 with early adoption permitted for annual periods beginning after December 15, 2018. Management is currently evaluating the impact that adoption of this guidance will have on the Company’s consolidated financial statements. In March 2016, the FASB issued new guidance simplifying the transition to the equity method of accounting. The amendment eliminates the requirement that when an investment qualifies for use of the equity method as a result of an increase in the level of ownership interest or degree of influence, an investor must adjust the investment, results of operations and retained earnings retroactively on a step-by-step basis as if the equity method had been in effect during all previous periods that the investments had been held. The amendment is effective for interim and annual periods beginning after December 15, 2016 and should be applied prospectively upon their effective date to increases in the level of ownership interest or degree of influence that result in the adoption of the equity method. The amendment is not expected to have a material impact on the Company’s consolidated financial statements. In March 2016, the FASB issued new guidance on improvements to employee share-based payment accounting. The amendment includes provisions intended to simplify various aspects related to how share-based payments are accounted for and presented in the financial statements including: income tax effects of share-based payments, minimum statutory tax withholding requirements and forfeitures. The amendment is effective for interim and annual periods beginning after December 15, 2016. The provisions will be applied using various transition approaches (prospective, retrospective and modified retrospective). Management is currently evaluating the impact that the adoption of this standard will have on the Company’s consolidated financial statements. In February 2016, the FASB issued revised guidance to lease accounting. The revised guidance will require lessees to recognize a right-of-use asset and a lease liability for virtually all of their leases. Lessor accounting will continue to be similar to the current model, but updated to align with certain changes to the lessee model. Extensive quantitative and qualitative disclosures, including significant judgments made by management, will be required to provide greater insight into the extent of revenue and expense recognized and expected to be recognized from existing contracts. The revised guidance is effective for interim and annual periods, beginning after December 15, 2018, with early adoption permitted. Management is currently evaluating the impact that adoption of this guidance will have on the Company’s consolidated financial statements. In May 2014, the FASB issued new revenue recognition guidance that is intended to improve and converge the financial reporting requirements for revenue from contracts with customers with International Financial Reporting Standards (“IFRS”). The new guidance applies to contracts that deliver goods or services to a customer, except when those contracts are for: insurance, leases, rights and obligations that are in the scope of certain financial instruments (i.e., derivative contracts) and guarantees other than product or service warranties. The new guidance is effective for interim and annual periods, beginning after December 15, 2017, with early adoption permitted for interim and annual periods beginning after December 15, 2016. Management is currently evaluating the impact that adoption of this guidance will have on the Company’s consolidated financial statements. |
Consolidation of VIEs | Consolidation of VIEs A VIE must be consolidated by its primary beneficiary, which generally is defined as the party who has a controlling financial interest in the VIE. The Company is deemed to have a controlling financial interest in a VIE if it has (i) the power to direct the activities of the VIE that most significantly affect the VIE’s economic performance, and (ii) the obligation to absorb losses of the VIE or the right to receive income from the VIE that potentially could be significant to the VIE. For purposes of evaluating (ii) above, fees paid to the Company as a decision maker or service provider are excluded if the fees are compensation for services provided commensurate with the level of effort required to be performed and the arrangement includes only customary terms, conditions or amounts present in arrangements for similar services negotiated at arm’s length. If the Company has a variable interest in an entity that is determined not to be a VIE, the entity then is evaluated for consolidation under the voting interest entity (“VOE”) model. For limited partnerships and similar entities, the Company is deemed to have a controlling financial interest in a VOE, and would be required to consolidate the entity, if the Company owns a majority of the entity’s kick-out rights through voting limited partnership interests and other limited partners do not hold substantive participating rights (or other rights that would indicate that the Company does not control the entity). For entities other than limited partnerships, the Company is deemed to have a controlling financial interest in a VOE if it owns a majority voting interest in the entity. The analysis performed to identify variable interests held, determine whether entities are VIEs or VOEs, and evaluate whether the Company has a controlling financial interest in such entities requires the exercise of judgment and is updated on a continuous basis as circumstances change or new entities are developed. The primary beneficiary evaluation generally is performed qualitatively based on all facts and circumstances, including consideration of economic interests in the VIE held directly and indirectly through related parties and entities under common control, as well as quantitatively, as appropriate. |
Fair Value Measurement | Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The accounting guidance established a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value, and identifies three levels of inputs that may be used to measure fair value: Level 1 Unadjusted quoted prices for identical instruments in active markets. Level 1 fair values generally are supported by market transactions that occur with sufficient frequency and volume to provide pricing information on an ongoing basis. Level 2 Observable inputs other than Level 1 prices, such as quoted prices for similar instruments, quoted prices in markets that are not active, and inputs to model-derived valuations that are directly observable or can be corroborated by observable market data. Level 3 Unobservable inputs supported by little or no market activity and often requiring significant management judgment or estimation, such as an entity’s own assumptions about the cash flows or other significant components of value that market participants would use in pricing the asset or liability. The Company uses unadjusted quoted market prices to measure the fair value of instruments that are actively traded in financial markets. In cases where quoted market prices are not available, fair values are measured using present value or other valuation techniques. The fair value determinations are made at a specific point in time, based on available market information and judgments about the financial instrument, including estimates of the timing and amount of expected future cash flows and the credit standing of counterparties. Such adjustments do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument, nor do they consider the tax impact of the realization of unrealized gains or losses. In many cases, the fair value cannot be substantiated by direct comparison to independent markets, nor can the disclosed value be realized in immediate settlement of the instrument. Management is responsible for the determination of the value of investments carried at fair value and the supporting methodologies and assumptions. Under the terms of various service agreements, the Company often utilizes independent valuation service providers to gather, analyze, and interpret market information and derive fair values based upon relevant methodologies and assumptions for individual securities. These independent valuation service providers typically obtain data about market transactions and other key valuation model inputs from multiple sources and, through the use of widely accepted valuation models, provide a single fair value measurement for individual securities for which a fair value has been requested. As further described below with respect to specific asset classes, these inputs include, but are not limited to, market prices for recent trades and transactions in comparable securities, benchmark yields, interest rate yield curves, credit spreads, quoted prices for similar securities, and other market-observable information, as applicable. Specific attributes of the security being valued also are considered, including its term, interest rate, credit rating, industry sector, and when applicable, collateral quality and other security- or issuer-specific information. When insufficient market observable information is available upon which to measure fair value, the Company either will request brokers knowledgeable about these securities to provide a non-binding quote or will employ internal valuation models. Fair values received from independent valuation service providers and brokers and those internally modeled or otherwise estimated are assessed for reasonableness. |
SIGNIFICANT ACCOUNTING POLICI23
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Summary of Balance Sheet Amounts Related to VIEs | The table below illustrates the summary balance sheet amounts related to these VIEs at their consolidation dates. Nine Months Ended January 1, 2016 VIE Guidance Adoption Additional VIEs Consolidated VIEs De-consolidated (In Millions) Cash and cash equivalents $ 36 $ 22 $ (13 ) Investments 215 40 (126 ) Other assets 14 23 (59 ) Total assets 265 85 (198 ) Liabilities 14 41 (60 ) Redeemable non-controlling interest 251 44 (138 ) Total liabilities and redeemable non-controlling interest $ 265 $ 85 $ (198 ) |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Available-for-sale Securities by Classification | The following table provides information relating to fixed maturities and equity securities classified as AFS: Available-for-Sale Securities by Classification Amortized Gross Unrealized Gross Unrealized Fair OTTI (3) (In Millions) September 30, 2016: Fixed Maturity Securities: Public corporate $ 13,181 $ 1,089 $ 10 $ 14,260 $ — Private corporate 6,945 410 20 7,335 — U.S. Treasury, government and agency 10,915 1,462 20 12,357 — States and political subdivisions 432 93 1 524 — Foreign governments 361 41 8 394 — Commercial mortgage-backed 454 24 82 396 7 Residential mortgage-backed (1) 519 33 — 552 — Asset-backed (2) 52 10 1 61 3 Redeemable preferred stock 541 60 — 601 — Total Fixed Maturities 33,400 3,222 142 36,480 10 Equity securities 86 — — 86 — Total at September 30, 2016 $ 33,486 $ 3,222 $ 142 $ 36,566 $ 10 December 31, 2015: Fixed Maturity Securities: Public corporate $ 12,890 $ 688 $ 202 $ 13,376 $ — Private corporate 6,818 232 124 6,926 — U.S. Treasury, government and agency 8,800 280 305 8,775 — States and political subdivisions 437 68 1 504 — Foreign governments 397 36 18 415 — Commercial mortgage-backed 591 29 87 533 9 Residential mortgage-backed (1) 608 32 — 640 — Asset-backed (2) 68 10 1 77 3 Redeemable preferred stock 592 57 2 647 — Total Fixed Maturities 31,201 1,432 740 31,893 12 Equity securities 34 — 2 32 — Total at December 31, 2015 $ 31,235 $ 1,432 $ 742 $ 31,925 $ 12 (1) Includes publicly-traded agency pass-through securities and collateralized mortgage obligations. (2) Includes credit-tranched securities collateralized by sub-prime mortgages and other asset types and credit tenant loans. (3) Amounts represent OTTI losses in AOCI, which were not included in earnings (loss) in accordance with current accounting guidance. |
Available-for-sale Securities Fixed Maturities Contractual Maturities | The contractual maturities of AFS fixed maturities at September 30, 2016 are shown in the table below. Bonds not due at a single maturity date have been included in the table in the final year of maturity. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Available-for-Sale Fixed Maturities Contractual Maturities at September 30, 2016 Amortized Cost Fair Value (In Millions) Due in one year or less $ 1,361 $ 1,378 Due in years two through five 7,668 8,201 Due in years six through ten 9,855 10,434 Due after ten years 12,950 14,857 Subtotal 31,834 34,870 Commercial mortgage-backed securities 454 396 Residential mortgage-backed securities 519 552 Asset-backed securities 52 61 Redeemable preferred stock 541 601 Total $ 33,400 $ 36,480 |
Proceeds from Sales, Gross Gains (Losses) and OTTI for AFS Fixed Maturities | The following table shows proceeds from sales, gross gains (losses) from sales and OTTI for AFS fixed maturities during the third quarter and first nine months of 2016 and 2015 : Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 (In Millions) Proceeds from sales $ 1,080 $ 182 $ 2,866 $ 807 Gross gains on sales $ 9 $ 14 $ 94 $ 21 Gross losses on sales $ (1 ) $ (2 ) $ (47 ) $ (7 ) Total OTTI $ (10 ) $ (14 ) $ (35 ) $ (32 ) Non-credit losses recognized in OCI — — — — Credit losses recognized in earnings (loss) $ (10 ) $ (14 ) $ (35 ) $ (32 ) |
Fixed Maturities - Credit Loss Impairments | The following table sets forth the amount of credit loss impairments on fixed maturity securities held by the Company at the dates indicated and the corresponding changes in such amounts. Fixed Maturities - Credit Loss Impairments Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 (In Millions) Balances, beginning of period $ (166 ) $ (238 ) $ (198 ) $ (254 ) Previously recognized impairments on securities that matured, paid, prepaid or sold 8 35 65 69 Recognized impairments on securities impaired to fair value this period (1) — — (17 ) — Impairments recognized this period on securities not previously impaired (8 ) (14 ) (16 ) (32 ) Additional impairments this period on securities previously impaired (2 ) — (2 ) — Increases due to passage of time on previously recorded credit losses — — — — Accretion of previously recognized impairments due to increases in expected cash flows — — — — Balances at September 30, $ (168 ) $ (217 ) $ (168 ) $ (217 ) (1) Represents circumstances where the Company determined in the current period that it intends to sell the security or it is more likely than not that it will be required to sell the security before recovery of the security’s amortized cost. |
Net Unrealized Gain (Loss) on Fixed Maturities and Equity Securities Included in AOCI | Net unrealized investment gains (losses) on fixed maturities and equity securities classified as AFS are included in the consolidated balance sheets as a component of AOCI. The table below presents these amounts as of the dates indicated: September 30, December 31, 2015 (In Millions) AFS Securities: Fixed maturities: With OTTI loss $ 18 $ 16 All other 3,062 676 Equity securities — (2 ) Net Unrealized Gains (Losses) $ 3,080 $ 690 |
Net Unrealized Gain (Losses) on Fixed Maturities with OTTI Losses | The tables that follow below present a roll-forward of net unrealized investment gains (losses) recognized in AOCI, split between amounts related to fixed maturity securities on which an OTTI loss has been recognized and all other amounts: Net Unrealized Gains (Losses) on Fixed Maturities with OTTI Losses Net DAC Policyholders’ Deferred AOCI Gain (In Millions) Balance, July 1, 2016 $ 15 $ — $ — $ (6 ) $ 9 Net investment gains (losses) arising during the period 2 — — — 2 Reclassification adjustment: Included in Net earnings (loss) 1 — — — 1 Excluded from Net earnings (loss) — — — — — Impact of net unrealized investment gains (losses) on: DAC — — — — — Deferred income taxes — — — (1 ) (1 ) Policyholders’ liabilities — — — — — Balance, September 30, 2016 $ 18 $ — $ — $ (7 ) $ 11 Balance, July 1, 2015 $ 7 $ 1 $ (1 ) $ (3 ) $ 4 Net investment gains (losses) arising during the period 1 — — — 1 Reclassification adjustment: Included in Net earnings (loss) 6 — — — 6 Excluded from Net earnings (loss) — — — — — Impact of net unrealized investment gains (losses) on: DAC — (1 ) — — (1 ) Deferred income taxes — — — (2 ) (2 ) Policyholders’ liabilities — — (1 ) — (1 ) Balance, September 30, 2015 $ 14 $ — $ (2 ) $ (5 ) $ 7 Net DAC Policyholders’ Deferred AOCI Gain (In Millions) Balance, January 1, 2016 $ 16 $ — $ (4 ) $ (5 ) $ 7 Net investment gains (losses) arising during the period (5 ) — — — (5 ) Reclassification adjustment for OTTI losses: Included in Net earnings (loss) 7 — — — 7 Excluded from Net earnings (loss) — — — — — Impact of net unrealized investment gains (losses) on: DAC — — — — — Deferred income taxes — — — (2 ) (2 ) Policyholders’ liabilities — — 4 — 4 Balance, September 30, 2016 $ 18 $ — $ — $ (7 ) $ 11 Balance, January 1, 2015 $ 10 $ — $ — $ (4 ) $ 6 Net investment gains (losses) arising during the period (4 ) — — — (4 ) Reclassification adjustment for OTTI losses: Included in Net earnings (loss) 8 — — — 8 Excluded from Net earnings (loss) — — — — — Impact of net unrealized investment gains (losses) on: DAC — — — — — Deferred income taxes — — — (1 ) (1 ) Policyholders’ liabilities — — (2 ) — (2 ) Balance, September 30, 2015 $ 14 $ — $ (2 ) $ (5 ) $ 7 |
All Other Net Unrealized Investment Gains (Losses) in AOCI | All Other Net Unrealized Investment Gains (Losses) in AOCI Net DAC Policyholders’ Deferred AOCI Gain (In Millions) Balance, July 1, 2016 $ 3,079 $ (139 ) $ (411 ) $ (886 ) $ 1,643 Net investment gains (losses) arising during the period (17 ) — — — (17 ) Reclassification adjustment: Included in Net earnings (loss) — — — — — Excluded from Net earnings (loss) (1) — — — — — Impact of net unrealized investment gains (losses) on: DAC — 24 — — 24 Deferred income taxes — — — (2 ) (2 ) Policyholders’ liabilities — — 1 — 1 Balance, September 30, 2016 $ 3,062 $ (115 ) $ (410 ) $ (888 ) $ 1,649 Balance, July 1, 2015 $ 1,093 $ (102 ) $ (300 ) $ (243 ) $ 448 Net investment gains (losses) arising during the period 198 — — — 198 Reclassification adjustment: Included in Net earnings (loss) (3 ) — — — (3 ) Excluded from Net earnings (loss) (1) — — — — — Impact of net unrealized investment gains (losses) on: DAC — 32 — — 32 Deferred income taxes — — — (86 ) (86 ) Policyholders’ liabilities — — 24 — 24 Balance, September 30, 2015 $ 1,288 $ (70 ) $ (276 ) $ (329 ) $ 613 (1) Represents “transfers out” related to the portion of OTTI losses during the period that were not recognized in earnings (loss) for securities with no prior OTTI loss. Net DAC Policyholders’ Deferred AOCI Gain (In Millions) Balance, January 1, 2016 $ 674 $ (82 ) $ (213 ) $ (133 ) $ 246 Net investment gains (losses) arising during the period 2,417 — — — 2,417 Reclassification adjustment for OTTI losses: Included in Net earnings (loss) (29 ) — — — (29 ) Excluded from Net earnings (loss) (1) — — — — — Impact of net unrealized investment gains (losses) on: DAC — (33 ) — — (33 ) Deferred income taxes — — — (755 ) (755 ) Policyholders’ liabilities — — (197 ) — (197 ) Balance, September 30, 2016 $ 3,062 $ (115 ) $ (410 ) $ (888 ) $ 1,649 Balance, January 1, 2015 $ 2,231 $ (122 ) $ (368 ) $ (610 ) $ 1,131 Net investment gains (losses) arising during the period (953 ) — — — (953 ) Reclassification adjustment for OTTI losses: Included in Net earnings (loss) 10 — — — 10 Excluded from Net earnings (loss) (1) — — — — — Impact of net unrealized investment gains (losses) on: DAC — 52 — — 52 Deferred income taxes — — — 281 281 Policyholders’ liabilities — — 92 — 92 Balance, September 30, 2015 $ 1,288 $ (70 ) $ (276 ) $ (329 ) $ 613 (1) Represents “transfers out” related to the portion of OTTI losses during the period that were not recognized in earnings (loss) for securities with no prior OTTI loss. |
Schedule of Gross Unrealized Loss on Investments | The following tables disclose the fair values and gross unrealized losses of the 423 issues at September 30, 2016 and the 810 issues at December 31, 2015 of fixed maturities that are not deemed to be other-than-temporarily impaired, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position for the specified periods at the dates indicated: Less Than 12 Months 12 Months or Longer Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (In Millions) September 30, 2016: Fixed Maturity Securities: Public corporate $ 401 $ 2 $ 170 $ 8 $ 571 $ 10 Private corporate 302 1 270 19 572 20 U.S. Treasury, government and agency 907 20 — — 907 20 States and political subdivisions — — 19 1 19 1 Foreign governments 2 — 51 8 53 8 Commercial mortgage-backed 65 8 207 74 272 82 Residential mortgage-backed 96 — 5 — 101 — Asset-backed — — 8 1 8 1 Redeemable preferred stock — — 13 — 13 — Total $ 1,773 $ 31 $ 743 $ 111 $ 2,516 $ 142 December 31, 2015: Fixed Maturity Securities: Public corporate $ 3,091 $ 129 $ 359 $ 73 $ 3,450 $ 202 Private corporate 1,926 102 184 22 2,110 124 U.S. Treasury, government and agency 3,538 305 — — 3,538 305 States and political subdivisions 19 1 — — 19 1 Foreign governments 73 7 39 11 112 18 Commercial mortgage-backed 67 2 261 85 328 87 Residential mortgage-backed 11 — 29 — 40 — Asset-backed 11 — 17 1 28 1 Redeemable preferred stock 43 — 40 2 83 2 Total $ 8,779 $ 546 $ 929 $ 194 $ 9,708 $ 740 |
Net Investment Income (Loss) from Trading Securities | The table below shows a breakdown of Net investment income from trading account securities during the third quarter and first nine months of 2016 and 2015 : Net investment income (loss) from trading securities Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 (In Millions) Net investment gains (losses) recognized during the period on securities held at the end of the period $ 7 $ (56 ) $ 126 $ (49 ) Net investment gains (losses) recognized on securities sold during the period 1 2 (9 ) 9 Unrealized and realized gains (losses) on trading securities arising during the period 8 (54 ) 117 (40 ) Interest and dividend income from trading securities 34 25 82 53 Net investment income (loss) from trading securities $ 42 $ (29 ) $ 199 $ 13 |
Troubled Debt Restructurings - Modifications | Troubled Debt Restructuring - Modifications September 30, 2016 Number of Loans Outstanding Recorded Investment Pre-Modification Post - Modification (In Millions) Commercial mortgage loans 1 15 15 |
Valuation Allowance for Mortgage Loans | Allowance for credit losses for commercial mortgage loans for the first nine months of 2016 and 2015 was as follows: 2016 2015 Allowance for credit losses: (In Millions) Beginning balance, January 1, $ 6 $ 37 Charge-offs — (1 ) Recoveries (2 ) — Provision 4 2 Ending balance, September 30, $ 8 $ 38 September 30, Individually Evaluated for Impairment $ 8 $ 38 |
Mortgage Loans by Loan-To-Value and Debt Service Coverage Ratios | The following tables provide information relating to the loan-to-value and debt service coverage ratios for commercial and agricultural mortgage loans at September 30, 2016 and December 31, 2015 , before adjustments for valuation allowance. The values used in these ratio calculations were developed as part of the periodic review of the commercial and agricultural mortgage loan portfolio, which includes an evaluation of the underlying collateral value. Mortgage Loans by Loan-to-Value and Debt Service Coverage Ratios September 30, 2016 Debt Service Coverage Ratio Loan-to-Value Ratio: (2) Greater than 2.0x 1.8x to 2.0x 1.5x to 1.8x 1.2x to 1.5x 1.0x to 1.2x Less than 1.0x Total Mortgage Loans (In Millions) Commercial Mortgage Loans (1) 0% - 50% $ 645 $ 151 $ 46 $ 57 $ — $ — $ 899 50% - 70% 2,644 508 624 818 76 — 4,670 70% - 90% 251 64 132 142 28 46 663 90% plus 33 — 27 15 — — 75 Total Commercial Mortgage Loans $ 3,573 $ 723 $ 829 $ 1,032 $ 104 $ 46 $ 6,307 Agricultural Mortgage Loans (1) 0% - 50% $ 254 $ 137 $ 298 $ 438 $ 275 $ 49 $ 1,451 50% - 70% 130 63 197 347 223 50 1,010 70% - 90% 3 — 2 4 — — 9 90% plus — — — — — — — Total Agricultural Mortgage Loans $ 387 $ 200 $ 497 $ 789 $ 498 $ 99 $ 2,470 Total Mortgage Loans (1) 0% - 50% $ 899 $ 288 $ 344 $ 495 $ 275 $ 49 $ 2,350 50% - 70% 2,774 571 821 1,165 299 50 5,680 70% - 90% 254 64 134 146 28 46 672 90% plus 33 — 27 15 — — 75 Total Mortgage Loans $ 3,960 $ 923 $ 1,326 $ 1,821 $ 602 $ 145 $ 8,777 (1) The debt service coverage ratio is calculated using the most recently reported net operating income results from property operations divided by annual debt service. (2) The loan-to-value ratio is derived from current loan balance divided by the fair market value of the property. The fair market value of the underlying commercial properties is updated annually. Mortgage Loans by Loan-to-Value and Debt Service Coverage Ratios December 31, 2015 Debt Service Coverage Ratio Loan-to-Value Ratio: (2) Greater than 2.0x 1.8x to 2.0x 1.5x to 1.8x 1.2x to1.5x 1.0x to 1.2x Less than 1.0x Total Mortgage Loans (In Millions) Commercial Mortgage Loans (1) 0% - 50% $ 533 $ — $ 102 $ 12 $ 24 $ — $ 671 50% - 70% 1,392 353 741 853 77 — 3,416 70% - 90% 141 — 206 134 124 46 651 90% plus 63 — — 46 — — 109 Total Commercial Mortgage Loans $ 2,129 $ 353 $ 1,049 $ 1,045 $ 225 $ 46 $ 4,847 Agricultural Mortgage Loans (1) 0% - 50% $ 204 $ 116 $ 277 $ 432 $ 256 $ 51 $ 1,336 50% - 70% 146 80 192 298 225 47 988 70% - 90% — — 2 4 — — 6 90% plus — — — — — — — Total Agricultural Mortgage Loans $ 350 $ 196 $ 471 $ 734 $ 481 $ 98 $ 2,330 Total Mortgage Loans (1) 0% - 50% $ 737 $ 116 $ 379 $ 444 $ 280 $ 51 $ 2,007 50% - 70% 1,538 433 933 1,151 302 47 4,404 70% - 90% 141 — 208 138 124 46 657 90% plus 63 — — 46 — — 109 Total Mortgage Loans $ 2,479 $ 549 $ 1,520 $ 1,779 $ 706 $ 144 $ 7,177 (1) The debt service coverage ratio is calculated using the most recently reported net operating income results from property operations divided by annual debt service. (2) The loan-to-value ratio is derived from current loan balance divided by the fair market value of the property. The fair market value of the underlying commercial properties is updated annually. |
Age Analysis of Past Due Mortgage Loans | The following table provides information relating to the aging analysis of past due mortgage loans at September 30, 2016 and December 31, 2015 , respectively, before adjustments for valuation allowance. Age Analysis of Past Due Mortgage Loans 30-59 Days 60-89 Days 90 Days or > Total Current Total Financing Receivables Recorded Investment > 90 Days and Accruing (In Millions) September 30, 2016 Commercial $ — $ — $ — $ — $ 6,307 $ 6,307 $ — Agricultural 5 12 19 36 2,434 2,470 19 Total Mortgage Loans $ 5 $ 12 $ 19 $ 36 $ 8,741 $ 8,777 $ 19 December 31, 2015 Commercial $ — $ — $ 30 $ 30 $ 4,817 $ 4,847 $ — Agricultural 12 7 4 23 2,307 2,330 4 Total Mortgage Loans $ 12 $ 7 $ 34 $ 53 $ 7,124 $ 7,177 $ 4 |
Impaired Mortgage Loans | The following table provides information regarding impaired mortgage loans at September 30, 2016 and December 31, 2015 , respectively. Impaired Mortgage Loans Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment (1) Interest Income Recognized (In Millions) September 30, 2016: With no related allowance recorded: Commercial mortgage loans - other $ 15 $ 15 $ — $ 23 $ — Agricultural mortgage loans — — — — — Total $ 15 $ 15 $ — $ 23 $ — With related allowance recorded: Commercial mortgage loans - other $ 28 $ 28 $ (8 ) $ 53 $ 2 Agricultural mortgage loans — — — — — Total $ 28 $ 28 $ (8 ) $ 53 $ 2 December 31, 2015: With no related allowance recorded: Commercial mortgage loans - other $ 46 $ 46 $ — $ 15 $ — Agricultural mortgage loans — — — — — Total $ 46 $ 46 $ — $ 15 $ — With related allowance recorded: Commercial mortgage loans - other $ 63 $ 63 $ (6 ) $ 137 $ 4 Agricultural mortgage loans — — — — — Total $ 63 $ 63 $ (6 ) $ 137 $ 4 (1) Represents a four-quarter average of recorded amortized cost. |
Derivative Instruments by Category | The tables below present quantitative disclosures about the Company’s derivative instruments, including those embedded in other contracts required to be accounted for as derivative instruments. Derivative Instruments by Category At September 30, 2016 Gains (Losses) Fair Value Notional Amount Asset Derivatives Liability Derivatives (In Millions) Freestanding derivatives: Equity contracts: (1) Futures $ 5,948 $ 1 $ 1 $ (581 ) Swaps 3,357 5 108 (193 ) Options 10,124 1,657 915 435 Interest rate contracts: (1) Floors 1,500 23 — 4 Swaps 18,914 452 272 1,460 Futures 7,405 — — (23 ) Credit contracts: (1) Credit default swaps 2,758 19 19 9 Other freestanding contracts: (1) Cross currency swaps 487 4 15 (13 ) Net investment income (loss) 1,098 Embedded derivatives: GMIB reinsurance contracts — 13,113 — 2,543 GIB and GWBL and Other Features (2) — — 301 (117 ) SCS, SIO, MSO and IUL indexed features (3) — — 649 (441 ) Total $ 50,493 $ 15,274 $ 2,280 $ 3,083 (1) Reported in Other invested assets in the consolidated balance sheets. (2) Reported in Future policy benefits and other policyholders’ liabilities in the consolidated balance sheets. (3) SCS and SIO indexed features are reported in Policyholders’ account balances; MSO and IUL indexed features are reported in Future policyholders’ benefits and other policyholders’ liabilities in the consolidated balance sheets. At December 31, 2015 Gains (Losses) Fair Value Notional Amount Asset Derivatives Liability Derivatives (In Millions) Freestanding derivatives: Equity contracts: (1) Futures $ 7,089 $ 2 $ 3 $ 303 Swaps 1,359 8 21 54 Options 7,358 1,042 652 (167 ) Interest rate contracts: (1) Floors 1,800 61 — 17 Swaps 13,718 351 108 157 Futures 8,685 — — (152 ) Swaptions — — — 118 Credit contracts: (1) Credit default swaps 2,442 16 38 (1 ) Other freestanding contracts: (1) Foreign currency contracts 263 5 4 8 Net investment income (loss) 337 Embedded derivatives: GMIB reinsurance contracts — 10,570 — 1,503 GIB and GWBL and Other Features (2) — — 184 (97 ) SCS, SIO, MSO and IUL indexed features (3) — — 310 137 Total $ 42,714 $ 12,055 $ 1,320 $ 1,880 (1) Reported in Other invested assets in the consolidated balance sheets. (2) Reported in Future policy benefits and other policyholders’ liabilities in the consolidated balance sheets. (3) SCS and SIO indexed features are reported in Policyholders’ account balances; MSO and IUL indexed features are reported in Future policyholders’ benefits and other policyholders’ liabilities in the consolidated balance sheets |
Offsetting Financial Assets and Liabilities and Derivative Instruments | The following table presents information about the Insurance Segment’s offsetting financial assets and liabilities and derivative instruments at September 30, 2016 . Offsetting Financial Assets and Liabilities and Derivative Instruments At September 30, 2016 Gross Amounts Recognized Gross Amounts Offset in the Balance Sheets Net Amounts Presented in the Balance Sheets (In Millions) ASSETS (1) Description Derivatives: Equity contracts $ 1,661 $ 1,022 $ 639 Interest rate contracts 467 270 197 Credit contracts 18 19 (1 ) Currency 1 11 (10 ) Total Derivatives, subject to an ISDA Master Agreement 2,147 1,322 825 Total Derivatives, not subject to an ISDA Master Agreement 8 — 8 Total Derivatives (2) 2,155 1,322 833 Other financial instruments (4) 1,242 — 1,242 Other invested assets $ 3,397 $ 1,322 $ 2,075 Securities purchased under agreement to resell $ — $ — $ — LIABILITIES (3) Description Derivatives: Equity contracts $ 1,022 $ 1,022 $ — Interest rate contracts 270 270 — Credit contracts 19 19 — Currency 11 11 — Total Derivatives, subject to an ISDA Master Agreement 1,322 1,322 — Total Derivatives, not subject to an ISDA Master Agreement — — — Total Derivatives 1,322 1,322 — Other financial liabilities 2,919 — 2,919 Other liabilities $ 4,241 $ 1,322 $ 2,919 Securities sold under agreement to repurchase (5) $ 2,142 $ — $ 2,142 (1) Excludes Investment Management segment’s $ 11 million net derivative assets (including derivative assets of consolidated VIEs), $ 4 million long exchange traded options and $ 43 million of securities borrowed. (2) Includes $ 129 million of accrued interest related to derivative instruments reported in other assets on the consolidated balance sheets. Excludes Investment Management segment’s $ 11 million net derivative liabilities (including derivative liabilities of consolidated VIEs), $ 4 million short exchange traded options and $ 5 million of securities loaned. (3) Includes margin of $ (41) million related to derivative instruments. (4) Excludes expense accrual of $ 3 million in securities sold under agreement to repurchase. (2) Excludes expense accrual of $ 3 million in securities sold under agreement to repurchase. The following table presents information about the Insurance segment’s offsetting financial assets and liabilities and derivative instruments at December 31, 2015 . Offsetting Financial Assets and Liabilities and Derivative Instruments At December 31, 2015 Gross Amounts Recognized Gross Amounts Offset in the Balance Sheets Net Amounts Presented in the Balance Sheets (In Millions) ASSETS (1) Description Derivatives: Equity contracts $ 1,049 $ 673 $ 376 Interest rate contracts 389 104 285 Credit contracts 14 37 (23 ) Total Derivatives, subject to an ISDA Master Agreement 1,452 814 638 Total Derivatives, not subject to an ISDA Master Agreement 20 — 20 Total Derivatives (2) 1,472 814 658 Other financial instruments (4) 1,271 — 1,271 Other invested assets $ 2,743 $ 814 $ 1,929 Securities purchased under agreement to resell $ 79 $ — $ 79 LIABILITIES (3) Description Derivatives: Equity contracts $ 673 $ 673 $ — Interest rate contracts 104 104 — Credit contracts 37 37 — Total Derivatives, subject to an ISDA Master Agreement 814 814 — Total Derivatives, not subject to an ISDA Master Agreement — — — Total Derivatives 814 814 — Other financial liabilities 2,586 — 2,586 Other liabilities $ 3,400 $ 814 $ 2,586 Securities sold under agreement to repurchase $ 1,890 $ — $ 1,890 (1) Excludes Investment Management segment’s $13 million net derivative assets, $6 million long exchange traded options and $75 million of securities borrowed. (2) Includes $141 million of accrued interest related to derivative instruments reported in other assets on the consolidated balance sheets. (3) Excludes Investment Management segment’s $12 million net derivative liabilities, $1 million short exchange traded options and $10 million of securities loaned. (4) Includes margin of $ (2) million related to derivative instruments. |
Gross Collateral Amounts Not Offset in Consolidated Balance Sheets | The following table presents information about the Insurance segment’s gross collateral amounts that are not offset in the consolidated balance sheets at December 31, 2015 . Gross Collateral Amounts Not Offset in the Consolidated Balance Sheets At December 31, 2015 Net Amounts Presented in the Balance Sheets Collateral (Received)/Held Financial Instruments Cash Net Amounts (In Millions) ASSETS: (1) Counterparty A $ 52 $ — $ (52 ) $ — Counterparty B 9 — (7 ) 2 Counterparty C 61 — (58 ) 3 Counterparty D 222 — (218 ) 4 Counterparty E 53 — (53 ) — Counterparty F (2 ) — 2 — Counterparty G 129 — (129 ) — Counterparty H 16 (11 ) (5 ) — Counterparty I 44 — (39 ) 5 Counterparty J 19 — (13 ) 6 Counterparty K 17 — (17 ) — Counterparty L 7 — (7 ) — Counterparty M 11 — (10 ) 1 Counterparty N 20 — — 20 Counterparty Q — — — — Counterparty T (3 ) — 3 — Counterparty U — — 1 1 Counterparty V 3 — (3 ) — Total Derivatives (2) $ 658 $ (11 ) $ (605 ) $ 42 Other financial instruments (4) 1,271 — — 1,271 Other invested assets $ 1,929 $ (11 ) $ (605 ) $ 1,313 Counterparty M $ 28 $ (28 ) $ — $ — Counterparty V 51 (51 ) — — Securities purchased under agreement to resell $ 79 $ (79 ) $ — $ — LIABILITIES (3) Counterparty D $ 234 $ (234 ) $ — $ — Counterparty C 1,033 (1,016 ) (17 ) — Counterparty M 623 (611 ) (12 ) — Securities sold under agreement to repurchase $ 1,890 $ (1,861 ) $ (29 ) $ — (1) Excludes Investment Management segment’s cash collateral received of $2 million related to derivative assets and $75 million related to securities borrowed. (2) Includes $141 million of accrued interest related to derivative instruments reported in other assets on the consolidated balance sheets. (3) Excludes Investment Management segment’s cash collateral pledged of $12 million related to derivative liabilities and $10 million related to securities loaned. (4) Includes margin of $ (2) million related to derivative instruments. The following table presents information about the Insurance segment’s gross collateral amounts that are not offset in the consolidated balance sheets at September 30, 2016 . Gross Collateral Amounts Not Offset in the Consolidated Balance Sheets At September 30, 2016 Net Amounts Presented in the Balance Sheets Collateral (Received)/Held Financial Instruments Cash Net Amounts (In Millions) ASSETS: (1) Counterparty A $ 64 $ — $ (63 ) $ 1 Counterparty B (43 ) — 43 — Counterparty C 44 — (44 ) — Counterparty D 239 — (239 ) — Counterparty E 19 — (19 ) — Counterparty F 40 — (40 ) — Counterparty G 213 — (213 ) — Counterparty H 56 (51 ) — 5 Counterparty I (8 ) — 8 — Counterparty J 77 — (77 ) — Counterparty K 67 — (67 ) — Counterparty L 2 — (2 ) — Counterparty M 12 — (12 ) — Counterparty N 8 — — 8 Counterparty Q 6 — (6 ) — Counterparty T (1 ) — 1 — Counterparty U (16 ) — 16 — Counterparty V 54 — (51 ) $ 3 Total derivatives (2) $ 833 $ (51 ) $ (765 ) $ 17 Other financial instruments (4) 1,242 — — 1,242 Other invested assets $ 2,075 $ (51 ) $ (765 ) $ 1,259 Securities purchased under agreement to resell $ — $ — $ — $ — LIABILITIES: (3) Counterparty D $ 834 $ (802 ) $ (20 ) $ 12 Counterparty M 518 (508 ) (5 ) 5 Counterparty H 236 (227 ) (6 ) 3 Counterparty W 554 (529 ) (16 ) 9 Securities sold under agreement to repurchase (5) $ 2,142 $ (2,066 ) $ (47 ) $ 29 (1) Excludes Investment Management segment’s cash collateral received of $ 1 million related to derivative assets (including those related to derivative assets of consolidated VIEs) and $ 43 million related to securities borrowed. (2) Includes $ 129 million of accrued interest related to derivative instruments reported in other assets on the consolidated balance sheets. (3) Excludes Investment Management segment’s cash collateral pledged of $ 8 million related to derivative liabilities (including those related to derivative liabilities of consolidated VIEs) and $ 5 million related to securities loaned. (4) Includes margin of $ (41) million related to derivative instruments. (5) Excludes expense accrual of $ 3 million in securities sold under agreement to repurchase. |
Repurchase Agreements Accounted for as Secured Borrowings | The following table presents information about repurchase agreements accounted for as secured borrowings in the consolidated balance sheets at December 31, 2015 . Repurchase Agreement Accounted for as Secured Borrowings (1) At December 31, 2015 Remaining Contractual Maturity of the Agreements Overnight and Continuous Up to 30 days 30–90 days Greater Than 90 days Total (In Millions) Securities sold under agreement to repurchase U.S. Treasury and agency securities $ — $ 1,865 $ 25 $ — $ 1,890 Total $ — $ 1,865 $ 25 $ — $ 1,890 Securities purchased under agreement to resell Corporate securities $ — $ 79 $ — $ — $ 79 Total $ — $ 79 $ — $ — $ 79 (1) Excludes Investment Management segment’s $ 75 million of securities borrowed and $ 10 million of securities loaned. The following table presents information about repurchase agreements accounted for as secured borrowings in the consolidated balance sheets at September 30, 2016 . Repurchase Agreement Accounted for as Secured Borrowings (1) At September 30, 2016 Remaining Contractual Maturity of the Agreements Overnight and Continuous Up to 30 days 30–90 days Greater Than 90 days Total (In Millions) Securities sold under agreement to repurchase (2) U.S. Treasury and agency securities $ — $ 2,142 $ — $ — $ 2,142 Total $ — $ 2,142 $ — $ — $ 2,142 Securities purchased under agreement to resell Corporate securities $ — $ — $ — $ — $ — Total $ — $ — $ — $ — $ — (1) Excludes Investment Management segment’s $ 43 million of securities borrowed and $ 5 million of securities loaned. (2) Excludes expense accrual of $ 3 million in securities sold under agreement to repurchase. |
CLOSED BLOCK (Tables)
CLOSED BLOCK (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Closed Block Disclosure [Abstract] | |
Summarized Financial Information for Closed Blocks | Summarized financial information for the Closed Block follows: September 30, December 31, (In Millions) CLOSED BLOCK LIABILITIES: Future policy benefits, policyholders’ account balances and other $ 7,206 $ 7,363 Policyholder dividend obligation 216 81 Other liabilities 45 100 Total Closed Block liabilities 7,467 7,544 ASSETS DESIGNATED TO THE CLOSED BLOCK: Fixed maturities, available for sale, at fair value (amortized cost of $3,950 and $4,426) 4,237 4,599 Mortgage loans on real estate 1,594 1,575 Policy loans 850 881 Cash and other invested assets 444 49 Other assets 172 258 Total assets designated to the Closed Block 7,297 7,362 Excess of Closed Block liabilities over assets designated to the Closed Block 170 182 Amounts included in accumulated other comprehensive income (loss): Net unrealized investment gains (losses), net of deferred income tax (expense) benefit of $(29) and $(36) and policyholder dividend obligation of $(216) and $(81) 53 67 Maximum Future Earnings To Be Recognized From Closed Block Assets and Liabilities $ 223 $ 249 |
Closed Block Revenues and Expenses | Closed Block revenues and expenses were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 (In Millions) REVENUES: Premiums and other income $ 55 $ 59 $ 177 $ 194 Net investment income (loss) 96 88 270 279 Net investment gains (losses) — 5 1 4 Total revenues 151 152 448 477 BENEFITS AND OTHER DEDUCTIONS: Policyholders’ benefits and dividends 131 154 404 450 Other operating costs and expenses 1 1 3 2 Total benefits and other deductions 132 155 407 452 Net revenues (loss) before income taxes 19 (3 ) 41 25 Income tax (expense) benefit (7 ) 1 (15 ) (9 ) Net Revenues (Losses) $ 12 $ (2 ) $ 26 $ 16 |
Reconciliation of Policy Holder Dividend Obligation | Reconciliation of the policyholder dividend obligation follows: Nine Months Ended September 30, 2016 2015 (In Millions) Balances, beginning of year $ 81 $ 201 Unrealized investment gains (losses), net of DAC 135 (73 ) Balances, End of Period $ 216 $ 128 |
GMDB, GMIB, GIB, GWBL AND OTH26
GMDB, GMIB, GIB, GWBL AND OTHER FEATURES AND NO LAPSE GUARANTEE FEATURES (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Variable Annuity Contracts-GMDB GMIB And GWBL [Abstract] | |
GMDB and GMIB Liabilities and Other Policyholder's Liabilities | The following table summarizes the GMDB and GMIB liabilities, before reinsurance ceded, reflected in the Balance Sheet in future policy benefits and other policyholders’ liabilities: GMDB GMIB Total (In Millions) Balance at January 1, 2016 $ 2,986 $ 5,297 $ 8,283 Paid guarantee benefits (280 ) (249 ) (529 ) Other changes in reserve 491 1,170 1,661 Balance at September 30, 2016 $ 3,197 $ 6,218 $ 9,415 Balance at January 1, 2015 $ 1,729 $ 5,644 $ 7,373 Paid guarantee benefits (229 ) (45 ) (274 ) Other changes in reserve 413 784 1,197 Balance at September 30, 2015 $ 1,913 $ 6,383 $ 8,296 |
GMDB Reinsurance Ceded | Related GMDB reinsurance ceded amounts were: Nine Months Ended September 30, 2016 2015 (In Millions) Balance, beginning of year $ 1,430 $ 832 Paid guarantee benefits (137 ) (108 ) Other changes in reserve 253 193 Balance, End of Period $ 1,546 $ 917 |
Variable Annuity Contracts with GMDB and GMIB Features | The September 30, 2016 values for variable annuity contracts in-force on such date with GMDB and GMIB features are presented in the following table. For contracts with the GMDB feature, the net amount at risk in the event of death is the amount by which the GMDB benefits exceed related account values. For contracts with the GMIB feature, the net amount at risk in the event of annuitization is the amount by which the present value of the GMIB benefits exceeds related account values, taking into account the relationship between current annuity purchase rates and the GMIB guaranteed annuity purchase rates. Since variable annuity contracts with GMDB guarantees may also offer GMIB guarantees in the same contract, the GMDB and GMIB amounts listed are not mutually exclusive: Return of Premium Ratchet Roll-Up Combo Total (Dollars In Millions) GMDB: Account values invested in: General Account $ 13,552 $ 124 $ 74 $ 233 $ 13,983 Separate Accounts $ 40,144 $ 8,857 $ 3,420 $ 33,935 $ 86,356 Net amount at risk, gross $ 252 $ 190 $ 2,318 $ 16,366 $ 19,126 Net amount at risk, net of amounts reinsured $ 252 $ 133 $ 1,576 $ 7,021 $ 8,982 Average attained age of contractholders 51.3 65.7 72.2 66.9 55.2 Percentage of contractholders over age 70 9.2 % 36.6 % 59.7 % 40.0 % 17.1 % Range of contractually specified interest rates N/A N/A 3%-6% 3%-6.5% 3%-6.5% GMIB: Account values invested in: General Account N/A N/A $ 35 $ 335 $ 370 Separate Accounts N/A N/A $ 17,592 $ 39,968 $ 57,560 Net amount at risk, gross N/A N/A $ 1,322 $ 8,850 $ 10,172 Net amount at risk, net of amounts reinsured N/A N/A $ 406 $ 2,289 $ 2,695 Weighted average years remaining until annuitization N/A N/A 1.6 1.4 1.4 Range of contractually specified interest rates N/A N/A 3%-6% 3%-6.5% 3%-6.5% |
Investment in Variable Insurance Trust Mutual Funds | The following table presents the aggregate fair value of assets, by major investment category, held by Separate Accounts that support variable annuity contracts with GMDB and GMIB benefits and guarantees. The investment performance of the assets impacts the related account values and, consequently, the net amount of risk associated with the GMDB and GMIB benefits and guarantees. Since variable annuity contracts with GMDB benefits and guarantees may also offer GMIB benefits and guarantees in each contract, the GMDB and GMIB amounts listed are not mutually exclusive: Investment in Variable Insurance Trust Mutual Funds September 30, December 31, (In Millions) GMDB: Equity $ 68,655 $ 66,230 Fixed income 2,630 2,686 Balanced 14,718 15,350 Other 353 374 Total $ 86,356 $ 84,640 GMIB: Equity $ 45,339 $ 43,874 Fixed income 1,772 1,819 Balanced 10,296 10,696 Other 153 170 Total $ 57,560 $ 56,559 |
Summary of no-Lapse Guarantee Liabilities and Other Policyholder's Liabilities | The following table summarizes the no lapse guarantee liabilities reflected in the Balance Sheet in Future policy benefits and other policyholders’ liabilities and the related reinsurance ceded: Direct Liability Reinsurance Ceded Net (In Millions) Balance at January 1, 2016 $ 1,084 $ (539 ) $ 545 Other changes in reserves 36 (66 ) (30 ) Balance at September 30, 2016 $ 1,120 $ (605 ) $ 515 Balance at January 1, 2015 $ 964 $ (555 ) $ 409 Other changes in reserves 116 38 154 Balance at September 30, 2015 $ 1,080 $ (517 ) $ 563 |
FAIR VALUE DISCLOSURES (Tables)
FAIR VALUE DISCLOSURES (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on Recurring Basis | Fair Value Measurements at September 30, 2016 Level 1 Level 2 Level 3 Total (In Millions) Assets: Investments: Fixed maturities, available-for-sale: Public Corporate $ — $ 14,204 $ 56 $ 14,260 Private Corporate — 6,652 683 7,335 U.S. Treasury, government and agency — 12,357 — 12,357 States and political subdivisions — 480 44 524 Foreign governments — 394 — 394 Commercial mortgage-backed — 22 374 396 Residential mortgage-backed (1) — 552 — 552 Asset-backed (2) — 36 25 61 Redeemable preferred stock 238 363 — 601 Subtotal 238 35,060 1,182 36,480 Other equity investments 75 — 6 81 Assets of consolidated VIEs: Investments 29 173 3 205 Other asset - derivatives — 4 — 4 Trading securities 499 8,203 — 8,702 Other invested assets: Short-term investments — 297 — 297 Swaps — 77 — 77 Credit Default Swaps — — — — Futures — — — — Options — 742 — 742 Floors — 23 — 23 Currency Contracts — (11 ) — (11 ) Subtotal — 1,128 — 1,128 Cash equivalents 2,696 — — 2,696 Segregated securities — 492 — 492 GMIB reinsurance contract asset — — 13,113 13,113 Separate Accounts’ assets 107,335 2,296 315 109,946 Total Assets $ 110,872 $ 47,356 $ 14,619 $ 172,847 Liabilities GWBL and Other Features’ liability $ — $ — $ 301 $ 301 SCS, SIO, MSO and IUL indexed features’ liability — 649 — 649 Liabilities of consolidated VIEs - Derivatives — 4 — 4 Contingent payment arrangements — — 18 18 Total Liabilities $ — $ 653 $ 319 $ 972 (1) Includes publicly-traded agency pass-through securities and collateralized obligations. (2) Includes credit-tranched securities collateralized by sub-prime mortgages and other asset types and credit tenant loans. Fair Value Measurements at December 31, 2015 Level 1 Level 2 Level 3 Total (In Millions) Assets: Investments: Fixed maturities, available-for-sale: Public Corporate $ — $ 13,345 $ 31 $ 13,376 Private Corporate — 6,537 389 6,926 U.S. Treasury, government and agency — 8,775 — 8,775 States and political subdivisions — 459 45 504 Foreign governments — 414 1 415 Commercial mortgage-backed — 30 503 533 Residential mortgage-backed (1) — 640 — 640 Asset-backed (2) — 37 40 77 Redeemable preferred stock 258 389 — 647 Subtotal 258 30,626 1,009 31,893 Other equity investments 97 — 49 146 Trading securities 654 6,151 — 6,805 Other invested assets: Short-term investments — 369 — 369 Swaps — 230 — 230 Credit Default Swaps — (22 ) — (22 ) Futures (1 ) — — (1 ) Options — 390 — 390 Floors — 61 — 61 Currency Contracts — 1 — 1 Subtotal (1 ) 1,029 — 1,028 Cash equivalents 2,150 — — 2,150 Segregated securities — 565 — 565 GMIB reinsurance contract asset — — 10,570 10,570 Separate Accounts’ assets 104,058 2,964 313 107,335 Total Assets $ 107,216 $ 41,335 $ 11,941 $ 160,492 Liabilities: GWBL and Other Features’ liability $ — $ — $ 184 $ 184 SCS, SIO, MSO and IUL indexed features’ liability — 310 — 310 Contingent payment arrangements — — 31 31 Total Liabilities $ — $ 310 $ 215 $ 525 (1) Includes publicly-traded agency pass-through securities and collateralized obligations. (2) Includes credit-tranched securities collateralized by sub-prime mortgages and other asset types and credit tenant loans. |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The table below presents a reconciliation for all Level 3 assets and liabilities for the third quarter and first nine months of 2016 and 2015 , respectively: Level 3 Instruments Fair Value Measurements Corporate State and Political Sub- divisions Foreign Govts Commercial Mortgage- backed Residential Mortgage- backed Asset- backed (In Millions) Balance, July 1, 2016 $ 495 $ 45 $ — $ 402 $ — $ 26 Total gains (losses), realized and unrealized, included in: Earnings (loss) as: Net investment income (loss) — — — 1 — — Investment gains (losses), net 1 — — (12 ) — — Subtotal 1 — — (11 ) — — Other comprehensive income (loss) (2 ) — — 10 — (1 ) Purchases 256 — — — — — Issues — — — — — — Sales (21 ) (1 ) — (21 ) — — Transfers into Level 3 (1) 11 — — — — — Transfers out of Level 3 (1) (1 ) — — (6 ) — — Balance, September 30, 2016 $ 739 $ 44 $ — $ 374 $ — $ 25 Balance, July 1, 2015 $ 373 $ 46 $ — $ 627 $ 1 $ 48 Total gains (losses), realized and unrealized, included in: Earnings (loss) as: Net investment income (loss) — — — 1 — — Investment gains (losses), net — — — (7 ) — — Subtotal — — — (6 ) — — Other comprehensive income (loss) (2 ) — — 12 — (3 ) Purchases 96 — — — — — Issues — — — — — — Sales 2 (1 ) — (63 ) — — Transfers into Level 3 (1) — — — — — — Transfers out of Level 3 (1) (25 ) — — (30 ) — — Balance, September 30, 2015 $ 444 $ 45 $ — $ 540 $ 1 $ 45 Corporate State and Political Sub- divisions Foreign Govts Commercial Mortgage- backed Residential Mortgage- backed Asset- backed (In Millions) Balance, January 1, 2016 $ 420 $ 45 $ 1 $ 503 $ — $ 40 Total gains (losses), realized and unrealized, included in: Earnings (loss) as: Net investment income (loss) (1 ) — — 1 — — Investment gains (losses), net 1 — — (36 ) — — Subtotal — — — (35 ) — — Other comprehensive income (loss) 8 — — (1 ) — 1 Purchases 399 — — — — — Issues — — — — — — Sales (89 ) (1 ) — (81 ) — (7 ) Settlements — — — — — — Transfers into Level 3 (1) 29 — — — — — Transfers out of Level 3 (1) (28 ) — (1 ) (12 ) — (9 ) Balance, September 30, 2016 $ 739 $ 44 $ — $ 374 $ — $ 25 Balance, January 1, 2015 $ 380 $ 47 $ — $ 715 $ 2 $ 53 Total gains (losses), realized and unrealized, included in: Earnings (loss) as: Net investment income (loss) 1 — — 1 — — Investment gains (losses), net 1 — — (27 ) — — Subtotal 2 — — (26 ) — — Other comprehensive income (loss) (3 ) (1 ) — 46 — (3 ) Purchases 129 — — — — — Sales (33 ) (1 ) — (145 ) (1 ) (5 ) Transfers into Level 3 (1) 31 — — — — — Transfers out of Level 3 (1) (62 ) — — (50 ) — — Balance, September 30, 2015 $ 444 $ 45 $ — $ 540 $ 1 $ 45 Redeemable Preferred Stock Other Equity Investments (2) GMIB Reinsurance Asset Separate Accounts Assets GWBL and Other Features’ Liability Contingent Payment Arrangement (In Millions) Balance, July 1, 2016 $ — $ 18 $ 13,311 $ 307 $ 330 $ 31 Total gains (losses), realized and unrealized, included in: Earnings (loss) as: Net investment income (loss) — — — — — — Investment gains (losses), net — — — 7 — — Increase (decrease) in the fair value of the reinsurance contract asset — — (235 ) — — — Policyholders’ benefits — — — — (88 ) — Subtotal — — (235 ) 7 (88 ) — Other comprehensive income (loss) — — — — — — Purchases (3) — — 56 3 59 11 Issues — — — — — — Sales (4) — — (19 ) — — — Settlements (5) — — — (1 ) — (24 ) Activity related to consolidated VIEs — 15 — — — — Transfers into Level 3 (1) — — — — — — Transfers out of Level 3 (1) — (24 ) — (1 ) — — Balance, September 30, 2016 $ — $ 9 $ 13,113 $ 315 $ 301 $ 18 Balance, July 1, 2015 $ — $ 51 $ 9,951 $ 283 $ 109 $ (42 ) Total gains (losses), realized and unrealized, included in: Earnings (loss) as: Net investment income (loss) — — — — — — Investment gains (losses), net — — — 8 — — Increase (decrease) in the fair value of the reinsurance contract asset — — 2,214 — — — Policyholders’ benefits — — — — 68 — Subtotal — — 2,214 8 68 — Other comprehensive income (loss) — — — — — — Purchases (3) — — 58 5 48 — Issues — — — — — — Sales (4) — — (9 ) — — — Settlements (5) — — — (1 ) — 3 Transfers into Level 3 (1) — — — 1 — — Transfers out of Level 3 (1) — — — (1 ) — — Balance, September 30, 2015 $ — $ 51 $ 12,214 $ 295 $ 225 $ (39 ) Redeemable Other (2) GMIB Separate GWBL Contingent (In Millions) Balance, January 1, 2016 $ — $ 17 $ 10,570 $ 313 $ 184 $ 31 Total gains (losses), realized and unrealized, included in: Earnings (loss) as: Net investment income (loss) — — — — — — Investment gains (losses), net — (1 ) — 19 — — Increase (decrease) in the fair value of the reinsurance contracts — — 2,426 — — — Policyholders’ benefits — — — — (48 ) — Subtotal — (1 ) 2,426 19 (48 ) — Other comprehensive income (loss) — — — — — — Purchases (3) — — 167 12 165 11 Issues — — — — — — Sales (4) — — (50 ) — — — Settlements (5) — — — (6 ) — (24 ) Activity related to consolidated VIEs — 17 — — — — Transfers into Level 3 (1) — — — 1 — — Transfers out of Level 3 (1) — (24 ) — (24 ) — — Balance, September 30, 2016 $ — $ 9 $ 13,113 $ 315 $ 301 $ 18 Balance, January 1, 2015 $ — $ 61 $ 10,711 $ 260 $ 128 $ (42 ) Total gains (losses), realized and unrealized, included in: Earnings (loss) as: Net investment income (loss) — 5 — — — (2 ) Investment gains (losses), net — 5 — 25 — — Increase (decrease) in the fair value of the reinsurance contracts — — 1,363 — — — Policyholders’ benefits — — — — (37 ) — Subtotal — 10 1,363 25 (37 ) (2 ) Other comprehensive income (loss) — (2 ) — — — — Purchases (3) — — 171 17 134 — Issues — — — — — — Sales (4) — (18 ) (31 ) (2 ) — — Settlements (5) — — — (3 ) — 5 Transfers into Level 3 (1) — — — — — — Transfers out of Level 3 (1) — — — (2 ) — — Balance, September 30, 2015 $ — $ 51 $ 12,214 $ 295 $ 225 $ (39 ) (1) Transfers into/out of Level 3 classification are reflected at beginning-of-period fair values. (2) Includes Level 3 amounts for Trading securities and consolidated VIE investments. (3) For the GMIB reinsurance contract asset and GWBL and other features reserves, represents premiums. (4) For the GMIB reinsurance contract asset, represents recoveries from reinsurers and for GWBL and other features reserves represents benefits paid. (5) For contingent payment arrangements, it represents change in estimates. |
Fair Value Assets Unrealized Gains Losses By Category For Level 3 Assets And Liabilities Still Held | The table below details changes in unrealized gains (losses) for the third quarter and first nine months of 2016 and 2015 by category for Level 3 assets and liabilities still held at September 30, 2016 and 2015 , respectively: Earnings (Loss) Investment Gains (Losses), Net Increase (Decrease) in the Fair Value of the Reinsurance Contract Asset OCI Policy- holders’ Benefits (In Millions) Level 3 Instruments Third Quarter 2016 Held at September 30, 2016: Change in unrealized gains (losses): Fixed maturities, available-for-sale: Corporate $ — $ — $ — $ — State and political subdivisions — — — — Commercial mortgage-backed — — 10 — Asset-backed — — (1 ) — Other fixed maturities, available-for-sale — — — — Subtotal $ — $ — $ 9 $ — GMIB reinsurance contracts — (198 ) — — Separate Accounts’ assets 6 — — — GWBL and other features’ liability — — — (29 ) Total $ 6 $ (198 ) $ 9 $ (29 ) Level 3 Instruments Third Quarter 2015 Held at September 30, 2015: Change in unrealized gains (losses): Fixed maturities, available-for-sale: Corporate $ — $ — $ (2 ) $ — State and political subdivisions — — — — Commercial mortgage-backed — — 11 — Asset-backed — — (3 ) — Other fixed maturities, available-for-sale — — — — Subtotal $ — $ — $ 6 $ — GMIB reinsurance contracts — 2,263 — — Separate Accounts’ assets 8 — — — GWBL and other features’ liability — — — 116 Total $ 8 $ 2,263 $ 6 $ 116 Earnings (Loss) Net Investment Income (Loss) Investment Gains (Losses), Net Increase (Decrease) in Fair Value of Reinsurance Contracts OCI Policy- holders’ Benefits (In Millions) Level 3 Instruments First Nine Months of 2016 Held at September 30, 2016: Change in unrealized gains (losses): Fixed maturities, available-for-sale: Corporate $ — $ — $ — $ 9 $ — State and political subdivisions — — — 1 — Commercial mortgage-backed — — — (6 ) — Asset-backed — — — 1 — Other fixed maturities, available-for-sale — — — — — Subtotal $ — $ — $ — $ 5 $ — GMIB reinsurance contracts — — 2,543 — — Separate Accounts’ assets — 19 — — — GWBL and other features’ liability — — — — 117 Total $ — $ 19 $ 2,543 $ 5 $ 117 Level 3 Instruments First Nine Months of 2015 Held at September 30, 2015: Change in unrealized gains (losses): Fixed maturities, available-for-sale: Corporate $ — $ — $ — $ (3 ) $ — State and political subdivisions — — — (1 ) — Commercial mortgage-backed — — — 44 — Asset-backed — — — (3 ) — Other fixed maturities, available-for-sale — — — — — Subtotal $ — $ — $ — $ 37 $ — Other equity investments — — — — — GMIB reinsurance contracts — — 1,503 — — Separate Accounts’ assets — 25 — — — GWBL and other features’ liability — — — — 97 Total $ — $ 25 $ 1,503 $ 37 $ 97 |
Fair Value Inputs Quantitative Information | The following tables disclose quantitative information about Level 3 fair value measurements by category for assets and liabilities as of September 30, 2016 and December 31, 2015 , respectively. Quantitative Information about Level 3 Fair Value Measurements September 30, 2016 Fair Value Valuation Technique Significant Unobservable Input Range (In Millions) Assets: Investments: Fixed maturities, available-for-sale: Corporate $ 53 Matrix pricing model Spread over the industry-specific benchmark yield curve 75 bps - 565 bps 475 Market comparable companies EBITDA multiples 4.9x- 22.2x Asset-backed 2 Matrix pricing model Spread over U.S. Treasury curve 25 bps - 687 bps Separate Accounts’ assets 292 Third party appraisal Capitalization rate 4.8% Exit capitalization rate 5.8% Discount rate 6.6% 6 Discounted cash flow Spread over U.S. Treasury curve 269 bps - 448 bps Discount factor 1.4%- 5.6% GMIB reinsurance contract asset 13,113 Discounted cash flow Lapse Rates 1.5%- 5.7% Withdrawal Rates 0.0% - 8.0% GMIB Utilization Rates 0.0% - 16.0% Non-performance risk 5 bps - 19 bps Volatility rates - Equity 9.0% - 35.0% Liabilities: GIB, GWBL and other features liability 301 Discounted Cash flow Lapse Rates 1.0% - 11.0% Withdrawal Rates 0.0% - 8.0% Volatility rates - Equity 9.0% - 35.0% Quantitative Information about Level 3 Fair Value Measurements December 31, 2015 Fair Value Valuation Technique Significant Unobservable Input Range (In Millions) Assets: Investments: Fixed maturities, available-for-sale: Corporate $ 61 Matrix pricing model Spread over the industry-specific benchmark yield curve 50 bps - 565 bps 154 Market comparable companies EBITDA multiples Discount Rate Cash flow Multiples 7.8x-19.1x Asset-backed 3 Matrix pricing model Spread over U.S. Treasury curve 30 bps - 687 bps Other equity investments 10 Market comparable companies Revenue multiple Marketable Discount 2.5x - 4.8x Separate Accounts’ assets 271 Third party appraisal Capitalization rate 4.9% Exit capitalization rate 5.9% Discount rate 6.7% 7 Discounted cash flow Spread over U.S. Treasury curve 280 bps - 411 bps Gross domestic product rate 0.0% - 1.09% Discount factor 2.3% - 5.9% GMIB reinsurance contract asset 10,570 Discounted Cash flow Lapse Rates 0.6% - 5.7% Withdrawal Rates 0.2% - 8.0% GMIB Utilization Rates 0.0% - 15.0% Non-performance risk 5 bps - 18 bps Volatility rates - Equity 9.0%- 35.0% Liabilities: GIB, GWBL and other features liability 184 Discounted Cash flow Lapse Rates 1.0% - 11.0% Withdrawal Rates 0.0% - 8.0% Volatility rates - Equity 9.0% -35.0% |
Fair Value Disclosure Financial Instruments Not Carried At Fair Value | The carrying values and fair values at September 30, 2016 and December 31, 2015 for financial instruments not otherwise disclosed in Note 3 are presented in the table below. Certain financial instruments are exempt from the requirements for fair value disclosure, such as insurance liabilities other than financial guarantees and investment contracts, limited partnerships accounted for under the equity method and pension and other postretirement obligations. Carrying Value Fair Value Level 1 Level 2 Level 3 Total (In Millions) September 30, 2016: Mortgage loans on real estate $ 8,769 $ — $ — $ 8,994 $ 8,994 Policy loans 3,371 — — 4,468 4,468 Loans to affiliates 704 — 795 — 795 Policyholders’ account balances: Investment contracts 3,717 — — 3,912 3,912 Short-term debt 387 — 387 — 387 Separate Account Liabilities 5,980 — — 5,980 5,980 December 31, 2015: Mortgage loans on real estate $ 7,171 $ — $ — $ 7,257 $ 7,257 Policy loans 3,393 — — 4,343 4,343 Loans to affiliates 1,087 — 795 390 1,185 Policyholders’ account balances: Investment contracts 2,701 — — 2,806 2,806 Short-term debt 584 — 584 — 584 Separate Account Liabilities 5,124 — — 5,124 5,124 |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |
Components of Net Periodic Pension Expense | Components of net periodic pension expense for the Company’s qualified plans ( third quarter and first nine months of 2016 net periodic pension expense is solely related to the AB Plan) were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 (In Millions) Net Periodic Pension Expense: (Qualified Plans) Service cost $ — $ 2 $ — $ 6 Interest cost 2 23 4 69 Expected return on assets (1 ) (39 ) (4 ) (117 ) Net amortization — 29 — 89 Actuarial (gain) loss — 1 — 1 Net Periodic Pension Expense $ 1 $ 16 $ — $ 48 |
SHARE-BASED COMPENSATION PROG29
SHARE-BASED COMPENSATION PROGRAMS (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Compensation Costs | Compensation costs for the third quarter and first nine months of 2016 and 2015 for share-based payment arrangements as further described herein are as follows: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 (In Thousands) Performance Shares $ 2,953 $ 3,200 $ 14,774 $ 14,226 Stock Options 110 117 825 623 AB Stock Options 200 2,900 200 9,300 AB Restricted Units 1,200 — 6,400 — Other compensation plans (1) 154 (64 ) (759 ) 488 Total Compensation Expenses $ 4,617 $ 6,153 $ 21,440 $ 24,637 (1) Other compensation plans include Restricted Stock, Stock Appreciation Rights and AXA Miles. |
ACCUMULATED OTHER COMPREHENSI30
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | AOCI represents cumulative gains (losses) on items that are not reflected in earnings (loss). The balances as of September 30, 2016 and 2015 follow: September 30, 2016 2015 (In Millions) Unrealized gains (losses) on investments $ 1,624 $ 645 Foreign currency translation adjustments (55 ) (53 ) Defined benefit pension plans (12 ) (722 ) Total accumulated other comprehensive income (loss) 1,557 (130 ) Less: Accumulated other comprehensive (income) loss attributable to noncontrolling interest 56 52 Accumulated Other Comprehensive Income (Loss) Attributable to AXA Equitable $ 1,613 $ (78 ) |
Components of Accumulated Other Comprehensive Income (Loss), Net of Taxes | The components of OCI, net-of-taxes for the third quarter and first nine months of 2016 and 2015 follow: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 (In Millions) Foreign currency translation adjustments: Foreign currency translation gains (losses) arising during the period $ (1 ) $ (10 ) $ 3 $ (17 ) (Gains) losses reclassified into net earnings (loss) during the period — (1 ) — (2 ) Foreign currency translation adjustment (1 ) (11 ) 3 (19 ) Net unrealized gains (losses) on investments: Net unrealized gains (losses) arising during the period (10 ) 130 1,568 (622 ) (Gains) losses reclassified into net earnings (loss) during the period (1) 1 2 (14 ) 12 Net unrealized gains (losses) on investments (9 ) 132 1,554 (610 ) Adjustments for policyholders’ liabilities, DAC, insurance liability loss recognition and other (13 ) 71 (171 ) 132 Change in unrealized gains (losses), net of adjustments (net of deferred income tax expense (benefit) of $(13), $107, and $751 and $(261) (22 ) 203 1,383 (478 ) Change in defined benefit plans: Less: reclassification adjustments to net earnings (loss) for (2) : Net gain (loss) arising during the period — — — Amortization of net prior service cost included in net periodic cost — 19 — 58 Change in defined benefit plans (net of deferred income tax expense (benefit) of $0, $10, $0, and $31. — 19 — 58 Total other comprehensive income (loss), net of income taxes (23 ) 211 1,386 (439 ) Less: Other comprehensive (income) loss attributable to noncontrolling interest (1 ) 5 (1 ) 10 Other Comprehensive Income (Loss) Attributable to AXA Equitable $ (24 ) $ 216 $ 1,385 $ (429 ) (1) See “Reclassification adjustments” in Note 3. Reclassification amounts presented net of income tax expense (benefit) of $ 13 million , $ 1 million , $ 7 million and $(2) million , for the third quarter and first nine months of 2016 and 2015 , respectively. (2) Reclassification amounts presented net of income tax expense (benefit) of $ 0 million , $ 0 million , $ 6 million and $ 17 million for third quarter and first nine months of 2016 and 2015 , respectively. |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Reconciliation of Revenue from Segments to Consolidated | The following tables reconcile segment revenues and earnings (loss) from continuing operations before income taxes to total revenues and earnings (loss) as reported on the consolidated statements of earnings (loss) and segment assets to total assets on the consolidated balance sheets. Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 (In Millions) Segment revenues: Insurance (1) $ 1,473 $ 4,983 $ 9,323 $ 7,231 Investment Management (2) 750 738 2,243 2,291 Consolidation/elimination (7 ) (7 ) (19 ) (21 ) Total Revenues $ 2,216 $ 5,714 $ 11,547 $ 9,501 (1) Includes investment expenses charged by AB of approximately $14 million , $39 million , $12 million and $34 million for the third quarter and first nine months of 2016 and 2015 , respectively, for services provided to the Insurance Segment. (2) Intersegment investment advisory and other fees of approximately $21 million , $58 million , $19 million and $55 million for the third quarter and first nine months of 2016 and 2015 , respectively, are included in total revenues of the Investment Management segment. |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 (In Millions) Segment earnings (loss) from continuing operations, before income taxes: Insurance $ (212 ) $ 3,200 $ 3,510 $ 2,271 Investment Management 183 138 490 445 Consolidation/elimination (1 ) 1 — — Total Earnings (Loss) from Continuing Operations, before income taxes $ (30 ) $ 3,339 $ 4,000 $ 2,716 |
Reconciliation of Assets from Segment to Consolidated | September 30, December 31, (In Millions) Segment assets: Insurance $ 196,468 $ 182,738 Investment Management (1) 12,568 11,895 Consolidation/elimination (2 ) (7 ) Total Assets $ 209,034 $ 194,626 (1) In accordance with SEC regulations, the assets of the Investment Management segment include securities with a fair value of $ 444 million and $460 million which have been segregated in a special reserve bank custody account at September 30, 2016 and December 31, 2015 , respectively, for the exclusive benefit of securities broker-dealer or brokerage customers under the Exchange Act. They also include cash held in several special bank accounts for the exclusive benefit of customers. As of September 30, 2016 and December 31, 2015 , $48 million and $55 million , respectively, of cash were segregated in these bank accounts. |
ORGANIZATION AND BASIS OF PRE32
ORGANIZATION AND BASIS OF PRESENTATION (Details) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
AXA Equitable | ||
Economic interest in subsidiary (as a percent) | 29.20% | 28.60% |
Parent Company | ||
Economic interest in subsidiary (as a percent) | 64.20% | 62.80% |
SIGNIFICANT ACCOUNTING POLICI33
SIGNIFICANT ACCOUNTING POLICIES (Details) $ in Millions | 9 Months Ended | |
Sep. 30, 2016USD ($)fund | Dec. 31, 2015USD ($) | |
Variable Interest Entity [Line Items] | ||
Other equity investments | $ 1,454 | $ 1,477 |
Variable Interest Entity, Not Primary Beneficiary | Investment Management | ||
Variable Interest Entity [Line Items] | ||
Variable Interest Entity, maximum loss exposure | $ 12 | |
Number of Investment Funds | fund | 3 | |
Variable Interest Entity, nonconsolidated net assets | $ 43,000 | |
Variable Interest Entity, Not Primary Beneficiary | Adjustments for New Accounting Pronouncement | ||
Variable Interest Entity [Line Items] | ||
Variable Interest Entity, unfunded commitments | 608 | |
Variable Interest Entity, Not Primary Beneficiary | Adjustments for New Accounting Pronouncement | Other Equity Investments | ||
Variable Interest Entity [Line Items] | ||
Variable Interest Entity, maximum loss exposure | 1,202 | |
Variable Interest Entity, nonconsolidated net assets | 156,371 | |
Variable Interest Entity, Not Primary Beneficiary | Adjustments for New Accounting Pronouncement | Insurance | ||
Variable Interest Entity [Line Items] | ||
Other equity investments | $ 1,202 | |
Variable Interest Entity, Primary Beneficiary | Investment Management | ||
Variable Interest Entity [Line Items] | ||
Number of Investment Funds | fund | 3 |
SIGNIFICANT ACCOUNTING POLICI34
SIGNIFICANT ACCOUNTING POLICIES VIEs Schedule (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Jan. 01, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Dec. 31, 2014 |
Variable Interest Entity [Line Items] | |||||
Cash and cash equivalents | $ 3,701 | $ 3,063 | $ 4,276 | $ 2,716 | |
Investments | 60,722 | 52,527 | |||
Other assets | 4,420 | 4,634 | |||
Total Assets | 209,034 | 194,626 | |||
Liabilities | 188,005 | 177,018 | |||
Redeemable non-controlling interest | 146 | 13 | |||
Total liabilities and redeemable non-controlling interest | 209,034 | $ 194,626 | |||
VIE Guidance Adoption [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Cash and cash equivalents | $ 36 | ||||
Investments | 215 | ||||
Other assets | 14 | ||||
Total Assets | 265 | ||||
Liabilities | 14 | ||||
Redeemable non-controlling interest | 251 | ||||
Total liabilities and redeemable non-controlling interest | $ 265 | ||||
Additional VIEs Consolidated [Member] | VIE Guidance Adoption [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Cash and cash equivalents | 22 | ||||
Investments | 40 | ||||
Other assets | 23 | ||||
Total Assets | 85 | ||||
Liabilities | 41 | ||||
Redeemable non-controlling interest | 44 | ||||
Total liabilities and redeemable non-controlling interest | 85 | ||||
VIEs De-consolidated [Member] | VIE Guidance Adoption [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Cash and cash equivalents | (13) | ||||
Investments | (126) | ||||
Other assets | (59) | ||||
Total Assets | (198) | ||||
Liabilities | (60) | ||||
Redeemable non-controlling interest | (138) | ||||
Total liabilities and redeemable non-controlling interest | $ (198) |
SIGNIFICANT ACCOUNTING POLICI35
SIGNIFICANT ACCOUNTING POLICIES - ASSUMPTION UPDATES (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2014 | |
Change in Accounting Estimate [Line Items] | |||||
Amortization of deferred policy acquisition costs | $ 156 | $ 90 | $ 359 | $ 248 | |
Universal life and investment-type product policy fee income | 978 | 937 | 2,794 | 2,747 | |
Policyholders’ benefits | 611 | 1,251 | 3,037 | 2,793 | |
Increase (decrease) in the fair value of the reinsurance contract asset | (198) | 2,263 | 2,543 | 1,503 | |
Earnings (loss) from continuing operations before income taxes | (30) | 3,339 | 4,000 | 2,716 | |
Net earnings (loss) | 22 | 2,275 | 2,803 | 2,104 | |
Variable and Interest Sensitive Life | |||||
Change in Accounting Estimate [Line Items] | |||||
Earnings (loss) from continuing operations before income taxes | 21 | ||||
Net earnings (loss) | (14) | ||||
Mortality Assumption | Variable and Interest Sensitive Life | |||||
Change in Accounting Estimate [Line Items] | |||||
Amortization of deferred policy acquisition costs | (70) | ||||
Universal life and investment-type product policy fee income | (16) | ||||
General Account Spread Assumption | Variable and Interest Sensitive Life | |||||
Change in Accounting Estimate [Line Items] | |||||
Amortization of deferred policy acquisition costs | 79 | ||||
Universal life and investment-type product policy fee income | 4 | ||||
Increase in Cost of Insurance | |||||
Change in Accounting Estimate [Line Items] | |||||
Earnings (loss) from continuing operations before income taxes | 71 | 71 | |||
Net earnings (loss) | $ 46 | 46 | |||
RTM Assumptions Update | |||||
Change in Accounting Estimate [Line Items] | |||||
Amortization of deferred policy acquisition costs | $ (67) | ||||
Mean (RTM) assumption | 7.00% | 7.00% | 9.00% | ||
Earnings (loss) from continuing operations before income taxes | $ (685) | ||||
Net earnings (loss) | (445) | ||||
RTM Assumptions Update | Variable and Interest Sensitive Life | |||||
Change in Accounting Estimate [Line Items] | |||||
Policyholders’ benefits | 29 | ||||
Model and Assumption Changes | |||||
Change in Accounting Estimate [Line Items] | |||||
Amortization of deferred policy acquisition costs | 31 | 31 | |||
Universal life and investment-type product policy fee income | 5 | 5 | |||
Policyholders’ benefits | (111) | (111) | |||
Earnings (loss) from continuing operations before income taxes | 85 | 85 | |||
Net earnings (loss) | 55 | 55 | |||
Out of Period Adjustments | |||||
Change in Accounting Estimate [Line Items] | |||||
Earnings (loss) from continuing operations before income taxes | (42) | $ (23) | (44) | (55) | |
Net earnings (loss) | (81) | $ (15) | (76) | (36) | |
Out of Period Adjustments | Model and Assumption Changes | |||||
Change in Accounting Estimate [Line Items] | |||||
Earnings (loss) from continuing operations before income taxes | $ (30) | $ (30) | |||
Guaranteed Minimum Income Benefit | RTM Assumptions Update | |||||
Change in Accounting Estimate [Line Items] | |||||
Policyholders’ benefits | 723 | ||||
Guaranteed Minimum Income Benefit | Long Term Lapse Assumption | |||||
Change in Accounting Estimate [Line Items] | |||||
Amortization of deferred policy acquisition costs | (13) | ||||
Policyholders’ benefits | 65 | ||||
Increase (decrease) in the fair value of the reinsurance contract asset | 216 | ||||
Earnings (loss) from continuing operations before income taxes | 164 | ||||
Net earnings (loss) | 107 | ||||
Guaranteed Minimum Income Benefit | Future Reserve Assumptions | |||||
Change in Accounting Estimate [Line Items] | |||||
Policyholders’ benefits | (55) | ||||
Increase (decrease) in the fair value of the reinsurance contract asset | (263) | ||||
Earnings (loss) from continuing operations before income taxes | (208) | ||||
Net earnings (loss) | $ (135) |
SIGNIFICANT ACCOUNTING POLICI36
SIGNIFICANT ACCOUNTING POLICIES - OUT OF PERIOD ADJUSTMENTS (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Quantifying Misstatement in Current Year Financial Statements [Line Items] | ||||
Revenues | $ 2,216 | $ 5,714 | $ 11,547 | $ 9,501 |
Total benefits and other deductions | 2,246 | 2,375 | 7,547 | 6,785 |
Earnings attributable to noncontrolling interest | 98 | 90 | 307 | 291 |
Income tax expense (Benefit) | (52) | 1,064 | 1,197 | 612 |
Earnings (loss) from continuing operations before income taxes | (30) | 3,339 | 4,000 | 2,716 |
Net earnings (loss) | 22 | 2,275 | 2,803 | 2,104 |
Out of Period Adjustments | ||||
Quantifying Misstatement in Current Year Financial Statements [Line Items] | ||||
Revenues | 7 | (4) | ||
Total benefits and other deductions | 49 | 23 | 40 | 55 |
Earnings attributable to noncontrolling interest | 32 | 27 | ||
Income tax expense (Benefit) | 54 | 47 | ||
Earnings (loss) from continuing operations before income taxes | (42) | (23) | (44) | (55) |
Net earnings (loss) | $ (81) | $ (15) | $ (76) | $ (36) |
INVESTMENTS (AVAILABLE FOR SALE
INVESTMENTS (AVAILABLE FOR SALE SECURITIES) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 33,486 | $ 31,235 |
Gross Unrealized Gains | 3,222 | 1,432 |
Gross Unrealized Losses | 142 | 742 |
Fair Value | 36,566 | 31,925 |
OTTI in AOCI | 10 | 12 |
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Fiscal Year Maturity [Abstract] | ||
Due in one year or less, Amortized Cost | 1,361 | |
Due in years two through five, Amortized Cost | 7,668 | |
Due in years six through ten, Amortized Cost | 9,855 | |
Due after ten years, Amortized Cost | 12,950 | |
Available for sale securities debt maturities single maturity date, Amortized Cost, Subtotal | 31,834 | |
Fixed maturities available for sale, amortized cost | 33,400 | |
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract] | ||
Due in one year or less, Fair Value | 1,378 | |
Due in years two through five, Fair Value | 8,201 | |
Due in years six through ten, Fair Value | 10,434 | |
Due after ten years, Fair Value | 14,857 | |
Available for sale securities debt maturities single maturity date, Fair Value, Subtotal | 34,870 | |
Available-for-sale securities, debt maturities, Fair Value, Total | 36,480 | |
Public corporate | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 13,181 | 12,890 |
Gross Unrealized Gains | 1,089 | 688 |
Gross Unrealized Losses | 10 | 202 |
Fair Value | 14,260 | 13,376 |
OTTI in AOCI | 0 | 0 |
Private corporate | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 6,945 | 6,818 |
Gross Unrealized Gains | 410 | 232 |
Gross Unrealized Losses | 20 | 124 |
Fair Value | 7,335 | 6,926 |
OTTI in AOCI | 0 | 0 |
U.S. Treasury, government and agency | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 10,915 | 8,800 |
Gross Unrealized Gains | 1,462 | 280 |
Gross Unrealized Losses | 20 | 305 |
Fair Value | 12,357 | 8,775 |
OTTI in AOCI | 0 | 0 |
State and Political Sub- divisions | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 432 | 437 |
Gross Unrealized Gains | 93 | 68 |
Gross Unrealized Losses | 1 | 1 |
Fair Value | 524 | 504 |
OTTI in AOCI | 0 | 0 |
Foreign Govts | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 361 | 397 |
Gross Unrealized Gains | 41 | 36 |
Gross Unrealized Losses | 8 | 18 |
Fair Value | 394 | 415 |
OTTI in AOCI | 0 | 0 |
Commercial Mortgage- backed | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 454 | 591 |
Gross Unrealized Gains | 24 | 29 |
Gross Unrealized Losses | 82 | 87 |
Fair Value | 396 | 533 |
OTTI in AOCI | 7 | 9 |
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Fiscal Year Maturity [Abstract] | ||
Available-for-sale securities, debt maturities, without single maturity date, Amortized Cost | 454 | |
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract] | ||
Available-for-sale securities, debt maturities, without single maturity date, Fair Value | 396 | |
Residential Mortgage- backed | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 519 | 608 |
Gross Unrealized Gains | 33 | 32 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 552 | 640 |
OTTI in AOCI | 0 | 0 |
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Fiscal Year Maturity [Abstract] | ||
Available-for-sale securities, debt maturities, without single maturity date, Amortized Cost | 519 | |
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract] | ||
Available-for-sale securities, debt maturities, without single maturity date, Fair Value | 552 | |
Asset- backed | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 52 | 68 |
Gross Unrealized Gains | 10 | 10 |
Gross Unrealized Losses | 1 | 1 |
Fair Value | 61 | 77 |
OTTI in AOCI | 3 | 3 |
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Fiscal Year Maturity [Abstract] | ||
Available-for-sale securities, debt maturities, without single maturity date, Amortized Cost | 52 | |
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract] | ||
Available-for-sale securities, debt maturities, without single maturity date, Fair Value | 61 | |
Redeemable Preferred Stock | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 541 | 592 |
Gross Unrealized Gains | 60 | 57 |
Gross Unrealized Losses | 0 | 2 |
Fair Value | 601 | 647 |
OTTI in AOCI | 0 | 0 |
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Fiscal Year Maturity [Abstract] | ||
Available-for-sale securities, debt maturities, without single maturity date, Amortized Cost | 541 | |
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract] | ||
Available-for-sale securities, debt maturities, without single maturity date, Fair Value | 601 | |
Fixed Maturities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 33,400 | 31,201 |
Gross Unrealized Gains | 3,222 | 1,432 |
Gross Unrealized Losses | 142 | 740 |
Fair Value | 36,480 | 31,893 |
OTTI in AOCI | 10 | 12 |
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Fiscal Year Maturity [Abstract] | ||
Fixed maturities available for sale, amortized cost | 33,400 | 31,201 |
Equity securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 86 | 34 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 2 |
Fair Value | 86 | 32 |
OTTI in AOCI | $ 0 | $ 0 |
INVESTMENTS (CREDIT LOSS IMPAIR
INVESTMENTS (CREDIT LOSS IMPAIRMENTS) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Proceeds from sales, gross gains (losses) from sales and OTTI for AFS fixed maturities | ||||
Fixed maturities, available for sale | $ 1,080 | $ 182 | $ 2,866 | $ 807 |
Gross gains on sales | 9 | 14 | 94 | 21 |
Gross losses on sales | (1) | (2) | (47) | (7) |
Total other-than-temporary impairment losses | (10) | (14) | (35) | (32) |
Portion of loss recognized in other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Net impairment losses recognized | (10) | (14) | (35) | (32) |
Fixed Maturities - Credit Loss Impairments | ||||
Balances at beginning of period | (166) | (238) | (198) | (254) |
Previously recognized impairments on securities that matured, paid, prepaid or sold | 8 | 35 | 65 | 69 |
Recognized impairments on securities impaired to fair value this period | 0 | 0 | (17) | 0 |
Impairments recognized this period on securities not previously impaired | (8) | (14) | (16) | (32) |
Additional impairments this period on securities previously impaired | (2) | 0 | (2) | 0 |
Increases due to passage of time on previously recorded credit losses | 0 | 0 | 0 | 0 |
Accretion of previously recognized impairments due to increases in expected cash flows | 0 | 0 | 0 | 0 |
Balances at end of period | $ (168) | $ (217) | $ (168) | $ (217) |
INVESTMENTS (NET UNREALIZED INV
INVESTMENTS (NET UNREALIZED INVESTMENTS) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Net Unrealized Investment Gains Losses Recognized In Aoci Roll Forward [Abstract] | ||||
Balance, End of Period | $ 1,624 | $ 645 | $ 1,624 | $ 645 |
Net Unrealized Gains (Losses) On Investments | ||||
Net Unrealized Investment Gains Losses Recognized In Aoci Roll Forward [Abstract] | ||||
Balance, beginning of year | 690 | |||
Balance, End of Period | 3,080 | 3,080 | ||
Net Unrealized Gains (Losses) On Investments | Unrealized Investment Gains Losses With OTTI Losses | ||||
Net Unrealized Investment Gains Losses Recognized In Aoci Roll Forward [Abstract] | ||||
Balance, beginning of year | 15 | 7 | 16 | 10 |
Net investment gains (losses) arising during the period | 2 | 1 | (5) | (4) |
Reclassification adjustment for OTTI losses excluded from Net earnings (loss) | 0 | 0 | 0 | 0 |
Balance, End of Period | 18 | 14 | 18 | 14 |
Net Unrealized Gains (Losses) On Investments | Unrealized Investment Gains Losses All Other | ||||
Net Unrealized Investment Gains Losses Recognized In Aoci Roll Forward [Abstract] | ||||
Balance, beginning of year | 3,079 | 1,093 | 674 | 2,231 |
Net investment gains (losses) arising during the period | (17) | 198 | 2,417 | (953) |
Included in Net earnings (loss) | 0 | (3) | (29) | 10 |
Reclassification adjustment for OTTI losses excluded from Net earnings (loss) | 0 | 0 | 0 | 0 |
Balance, End of Period | 3,062 | 1,288 | 3,062 | 1,288 |
DAC | Unrealized Investment Gains Losses With OTTI Losses | ||||
Net Unrealized Investment Gains Losses Recognized In Aoci Roll Forward [Abstract] | ||||
Balance, beginning of year | 0 | 1 | 0 | 0 |
Impact of net unrealized investment gains (losses) on DAC | 0 | (1) | 0 | 0 |
Balance, End of Period | 0 | 0 | 0 | 0 |
DAC | Unrealized Investment Gains Losses All Other | ||||
Net Unrealized Investment Gains Losses Recognized In Aoci Roll Forward [Abstract] | ||||
Balance, beginning of year | (139) | (102) | (82) | (122) |
Impact of net unrealized investment gains (losses) on DAC | 24 | 32 | (33) | 52 |
Balance, End of Period | (115) | (70) | (115) | (70) |
Policyholders Liabilities | Unrealized Investment Gains Losses With OTTI Losses | ||||
Net Unrealized Investment Gains Losses Recognized In Aoci Roll Forward [Abstract] | ||||
Balance, beginning of year | 0 | (1) | (4) | 0 |
Impact of net unrealized investment gains (losses) on policyholders liabilities | 0 | (1) | 4 | (2) |
Balance, End of Period | 0 | (2) | 0 | (2) |
Policyholders Liabilities | Unrealized Investment Gains Losses All Other | ||||
Net Unrealized Investment Gains Losses Recognized In Aoci Roll Forward [Abstract] | ||||
Balance, beginning of year | (411) | (300) | (213) | (368) |
Impact of net unrealized investment gains (losses) on policyholders liabilities | 1 | 24 | (197) | 92 |
Balance, End of Period | (410) | (276) | (410) | (276) |
Deferred Income Tax Asset Liability | Unrealized Investment Gains Losses With OTTI Losses | ||||
Net Unrealized Investment Gains Losses Recognized In Aoci Roll Forward [Abstract] | ||||
Balance, beginning of year | (6) | (3) | (5) | (4) |
Impact of net unrealized investment gains (losses) on Deferred income taxes | (1) | (2) | (2) | (1) |
Balance, End of Period | (7) | (5) | (7) | (5) |
Deferred Income Tax Asset Liability | Unrealized Investment Gains Losses All Other | ||||
Net Unrealized Investment Gains Losses Recognized In Aoci Roll Forward [Abstract] | ||||
Balance, beginning of year | (886) | (243) | (133) | (610) |
Impact of net unrealized investment gains (losses) on Deferred income taxes | (2) | (86) | (755) | 281 |
Balance, End of Period | (888) | (329) | (888) | (329) |
AOCI Gain Losses Related to Net Unrealized Investment Gains Losses | Unrealized Investment Gains Losses With OTTI Losses | ||||
Net Unrealized Investment Gains Losses Recognized In Aoci Roll Forward [Abstract] | ||||
Balance, beginning of year | 9 | 4 | 7 | 6 |
Net investment gains (losses) arising during the period | 2 | 1 | (5) | (4) |
Reclassification adjustment for OTTI losses excluded from Net earnings (loss) | 0 | 0 | 0 | 0 |
Impact of net unrealized investment gains (losses) on DAC | 0 | (1) | 0 | 0 |
Impact of net unrealized investment gains (losses) on Deferred income taxes | (1) | (2) | 2 | 1 |
Impact of net unrealized investment gains (losses) on policyholders liabilities | 0 | (1) | (4) | 2 |
Balance, End of Period | 11 | 7 | 11 | 7 |
AOCI Gain Losses Related to Net Unrealized Investment Gains Losses | Unrealized Investment Gains Losses All Other | ||||
Net Unrealized Investment Gains Losses Recognized In Aoci Roll Forward [Abstract] | ||||
Balance, beginning of year | 1,643 | 448 | 246 | 1,131 |
Net investment gains (losses) arising during the period | (17) | 198 | 2,417 | (953) |
Included in Net earnings (loss) | 0 | (3) | (29) | 10 |
Reclassification adjustment for OTTI losses excluded from Net earnings (loss) | 0 | 0 | 0 | 0 |
Impact of net unrealized investment gains (losses) on DAC | 24 | 32 | 33 | (52) |
Impact of net unrealized investment gains (losses) on Deferred income taxes | (2) | (86) | 755 | (281) |
Impact of net unrealized investment gains (losses) on policyholders liabilities | 1 | 24 | 197 | (92) |
Balance, End of Period | 1,649 | 613 | 1,649 | 613 |
Fixed Maturities | Net Unrealized Gains (Losses) On Investments | Unrealized Investment Gains Losses With OTTI Losses | ||||
Net Unrealized Investment Gains Losses Recognized In Aoci Roll Forward [Abstract] | ||||
Balance, beginning of year | 16 | |||
Balance, End of Period | 18 | 18 | ||
Fixed Maturities | Net Unrealized Gains (Losses) On Investments | Unrealized Investment Gains Losses All Other | ||||
Net Unrealized Investment Gains Losses Recognized In Aoci Roll Forward [Abstract] | ||||
Balance, beginning of year | 676 | |||
Balance, End of Period | 3,062 | 3,062 | ||
Fixed Maturities | AOCI Gain Losses Related to Net Unrealized Investment Gains Losses | Unrealized Investment Gains Losses With OTTI Losses | ||||
Net Unrealized Investment Gains Losses Recognized In Aoci Roll Forward [Abstract] | ||||
Included in Net earnings (loss) | 1 | 6 | 7 | 8 |
Fixed Maturities | Net Unrealized Gains (Losses) On Investmetns | Unrealized Investment Gains Losses With OTTI Losses | ||||
Net Unrealized Investment Gains Losses Recognized In Aoci Roll Forward [Abstract] | ||||
Included in Net earnings (loss) | 1 | $ 6 | 7 | $ 8 |
Equity securities | Net Unrealized Gains (Losses) On Investments | Unrealized Investment Gains Losses All Other | ||||
Net Unrealized Investment Gains Losses Recognized In Aoci Roll Forward [Abstract] | ||||
Balance, beginning of year | (2) | |||
Balance, End of Period | $ 0 | $ 0 |
INVESTMENTS (GROSS UNREALIZED L
INVESTMENTS (GROSS UNREALIZED LOSSES) (Details) $ in Millions | Sep. 30, 2016USD ($)securities | Dec. 31, 2015USD ($)securities |
Investments, Debt and Equity Securities [Abstract] | ||
Number of fixed maturities in an unrealized loss position greater than 12 months | securities | 423 | 810 |
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less Than 12 Months, Fair Value | $ 1,773 | $ 8,779 |
Less Than 12 Months, Gross Unrealized Losses | (31) | (546) |
Greater than 12 Months, Fair Value | 743 | 929 |
Greater Than 12 Months, Gross Unrealized Losses | (111) | (194) |
Total, Fair Value | 2,516 | 9,708 |
Total, Gross Unrealized Losses | (142) | (740) |
Public corporate | ||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less Than 12 Months, Fair Value | 401 | 3,091 |
Less Than 12 Months, Gross Unrealized Losses | (2) | (129) |
Greater than 12 Months, Fair Value | 170 | 359 |
Greater Than 12 Months, Gross Unrealized Losses | (8) | (73) |
Total, Fair Value | 571 | 3,450 |
Total, Gross Unrealized Losses | (10) | (202) |
Private corporate | ||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less Than 12 Months, Fair Value | 302 | 1,926 |
Less Than 12 Months, Gross Unrealized Losses | (1) | (102) |
Greater than 12 Months, Fair Value | 270 | 184 |
Greater Than 12 Months, Gross Unrealized Losses | (19) | (22) |
Total, Fair Value | 572 | 2,110 |
Total, Gross Unrealized Losses | (20) | (124) |
U.S. Treasury, government and agency | ||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less Than 12 Months, Fair Value | 907 | 3,538 |
Less Than 12 Months, Gross Unrealized Losses | (20) | (305) |
Greater than 12 Months, Fair Value | 0 | 0 |
Greater Than 12 Months, Gross Unrealized Losses | 0 | 0 |
Total, Fair Value | 907 | 3,538 |
Total, Gross Unrealized Losses | (20) | (305) |
State and Political Sub- divisions | ||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less Than 12 Months, Fair Value | 0 | 19 |
Less Than 12 Months, Gross Unrealized Losses | 0 | (1) |
Greater than 12 Months, Fair Value | 19 | 0 |
Greater Than 12 Months, Gross Unrealized Losses | (1) | 0 |
Total, Fair Value | 19 | 19 |
Total, Gross Unrealized Losses | (1) | (1) |
Foreign Govts | ||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less Than 12 Months, Fair Value | 2 | 73 |
Less Than 12 Months, Gross Unrealized Losses | 0 | (7) |
Greater than 12 Months, Fair Value | 51 | 39 |
Greater Than 12 Months, Gross Unrealized Losses | (8) | (11) |
Total, Fair Value | 53 | 112 |
Total, Gross Unrealized Losses | (8) | (18) |
Commercial Mortgage- backed | ||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less Than 12 Months, Fair Value | 65 | 67 |
Less Than 12 Months, Gross Unrealized Losses | (8) | (2) |
Greater than 12 Months, Fair Value | 207 | 261 |
Greater Than 12 Months, Gross Unrealized Losses | (74) | (85) |
Total, Fair Value | 272 | 328 |
Total, Gross Unrealized Losses | (82) | (87) |
Residential Mortgage- backed | ||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less Than 12 Months, Fair Value | 96 | 11 |
Less Than 12 Months, Gross Unrealized Losses | 0 | 0 |
Greater than 12 Months, Fair Value | 5 | 29 |
Greater Than 12 Months, Gross Unrealized Losses | 0 | 0 |
Total, Fair Value | 101 | 40 |
Total, Gross Unrealized Losses | 0 | 0 |
Asset- backed | ||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less Than 12 Months, Fair Value | 0 | 11 |
Less Than 12 Months, Gross Unrealized Losses | 0 | 0 |
Greater than 12 Months, Fair Value | 8 | 17 |
Greater Than 12 Months, Gross Unrealized Losses | (1) | (1) |
Total, Fair Value | 8 | 28 |
Total, Gross Unrealized Losses | (1) | (1) |
Redeemable Preferred Stock | ||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less Than 12 Months, Fair Value | 0 | 43 |
Less Than 12 Months, Gross Unrealized Losses | 0 | 0 |
Greater than 12 Months, Fair Value | 13 | 40 |
Greater Than 12 Months, Gross Unrealized Losses | 0 | (2) |
Total, Fair Value | 13 | 83 |
Total, Gross Unrealized Losses | $ 0 | $ (2) |
INVESTMENTS (TEXTUAL) (Details)
INVESTMENTS (TEXTUAL) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Investments In Fixed Maturity Securities Other Disclosure [Abstract] | |||||
Debt securities exposure in single issuer greater than stated percentage of total investments | 0.30% | 0.30% | |||
Available-for-sale securities, amortized cost basis | $ 33,486 | $ 33,486 | $ 31,235 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 111 | 111 | 194 | ||
Carrying value of fixed maturities non-income producing | 6 | 6 | |||
Investment expenses | 16 | $ 15 | 47 | $ 41 | |
Trading securities, Cost | 8,611 | 8,611 | 6,866 | ||
Trading securities, at fair value | 8,702 | 8,702 | 6,805 | ||
Separate account equity investment carrying value | 65 | 65 | 82 | ||
Separate account equity investment cost | 49 | 49 | 72 | ||
Equity Securities, Carrying Value | 86 | 86 | 32 | ||
Equity Securities, Amortized Cost | 86 | 86 | 34 | ||
Other Than Investment Grade | |||||
Investments In Fixed Maturity Securities Other Disclosure [Abstract] | |||||
Available-for-sale securities, amortized cost | $ 1,628 | $ 1,628 | $ 1,310 | ||
Percentage of available for sale securities | 4.90% | 4.90% | 4.20% | ||
Subprime residential mortgage loans | |||||
Investments In Fixed Maturity Securities Other Disclosure [Abstract] | |||||
Other investments and securities, at cost | $ 6 | $ 6 | $ 7 | ||
Alt residential mortgage loans | |||||
Investments In Fixed Maturity Securities Other Disclosure [Abstract] | |||||
Other investments and securities, at cost | 6 | 6 | 6 | ||
Public corporate | |||||
Investments In Fixed Maturity Securities Other Disclosure [Abstract] | |||||
Debt securities exposure in single issuer of total investments | 166 | 166 | 157 | ||
Available-for-sale securities, amortized cost basis | 13,181 | 13,181 | 12,890 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 8 | 8 | 73 | ||
Fixed Maturities | |||||
Investments In Fixed Maturity Securities Other Disclosure [Abstract] | |||||
Available-for-sale securities, amortized cost basis | $ 33,400 | 33,400 | 31,201 | ||
Fixed Maturities | Other Than Investment Grade | |||||
Investments In Fixed Maturity Securities Other Disclosure [Abstract] | |||||
Gross Unrealized Losses | $ 45 | $ 97 |
INVESTMENTS (TRADING SECURITIES
INVESTMENTS (TRADING SECURITIES) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Net Realized and Unrealized Gain (Loss) on Trading Securities [Abstract] | ||||
Net investment gains (losses) recognized during the period on securities held at the end of the period | $ 7 | $ (56) | $ 126 | $ (49) |
Net investment gains (losses) recognized on securities sold during the period | 1 | 2 | (9) | 9 |
Unrealized and realized gains (losses) on trading securities arising during the period | 8 | (54) | 117 | (40) |
Interest and dividend income from trading securities | 34 | 25 | 82 | 53 |
Net investment income (loss) from trading securities | $ 42 | $ (29) | $ 199 | $ 13 |
INVESTMENTS (TROUBLED DEBT REST
INVESTMENTS (TROUBLED DEBT RESTRUCTURING) (Details) - Commercial Mortgage Loans $ in Millions | 1 Months Ended | 9 Months Ended | |
Nov. 30, 2015USD ($) | Sep. 30, 2016USD ($)loan | Dec. 31, 2015USD ($) | |
Financing Receivable, Modifications [Line Items] | |||
Mortgage loans classified as nonaccrual | $ 35 | $ 72 | |
Reduced investments recorded in financing receivables | $ 32 | ||
Troubled debt restructuring, number of loans | loan | 1 | ||
Pre-modification, recorded investment | $ 15 | ||
Post-modification, recorded investment | $ 15 | ||
Sale of Underlying Collateral | |||
Financing Receivable, Modifications [Line Items] | |||
Reduced investments recorded in financing receivables | $ 45 |
INVESTMENTS (VALUATION ALLOWANC
INVESTMENTS (VALUATION ALLOWANCE FOR MORTGAGE LOANS) (Details) - USD ($) | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |||
Mortgage loans on real estate, valuation allowances | $ 8,000,000 | $ 6,000,000 | |
Commercial Mortgage Loans | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Beginning balance, January 1, | 6,000,000 | $ 37,000,000 | |
Charge-offs | 0 | (1,000,000) | |
Recoveries | (2,000,000) | 0 | |
Provision | 4,000,000 | 2,000,000 | |
Ending balance, September 30, | 8,000,000 | 38,000,000 | |
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |||
Mortgage loans on real estate, valuation allowances | 8,000,000 | $ 38,000,000 | |
Agricultural Mortgage Loans | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Beginning balance, January 1, | 0 | ||
Ending balance, September 30, | $ 0 |
INVESTMENTS (MORTGAGE LOANS) (D
INVESTMENTS (MORTGAGE LOANS) (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate | $ 6,307 | $ 4,847 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Financing receivables, recorded investment, past due | 0 | 30 |
Financing receivables, recorded investment, current | 6,307 | 4,817 |
Total financing receivables | 6,307 | 4,847 |
Financing receivable, recorded investment, 90 days or more past due and accruing | 0 | 0 |
Commercial Mortgage Loans | With No Related Allowance Recorded | ||
Impaired Mortgage Loans [Abstract] | ||
Impaired financing receivable, recorded investment | 15 | 46 |
Impaired financing receivable, unpaid principal balance | 15 | 46 |
Related allowance | 0 | 0 |
Impaired financing receivable, average recorded investment | 23 | 15 |
Impaired financing receivable, interest income recognized | 0 | 0 |
Commercial Mortgage Loans | With Related Allowance Recorded | ||
Impaired Mortgage Loans [Abstract] | ||
Impaired financing receivable, recorded investment | 28 | 63 |
Impaired financing receivable, unpaid principal balance | 28 | 63 |
Related allowance | (8) | (6) |
Impaired financing receivable, average recorded investment | 53 | 137 |
Impaired financing receivable, interest income recognized | 2 | 4 |
Commercial Mortgage Loans | Greater than 2.0x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate | 3,573 | 2,129 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 3,573 | 2,129 |
Commercial Mortgage Loans | 1.8x to 2.0x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate | 723 | 353 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 723 | 353 |
Commercial Mortgage Loans | 1.5x to 1.8x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate | 829 | 1,049 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 829 | 1,049 |
Commercial Mortgage Loans | 1.2x to 1.5x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate | 1,032 | 1,045 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 1,032 | 1,045 |
Commercial Mortgage Loans | 1.0x to 1.2x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate | 104 | 225 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 104 | 225 |
Commercial Mortgage Loans | Less than 1.0x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate | 46 | 46 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 46 | 46 |
Commercial Mortgage Loans | 0% - 50% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate | 899 | 671 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 899 | 671 |
Commercial Mortgage Loans | 0% - 50% | Greater than 2.0x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate | 645 | 533 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 645 | 533 |
Commercial Mortgage Loans | 0% - 50% | 1.8x to 2.0x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate | 151 | 0 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 151 | 0 |
Commercial Mortgage Loans | 0% - 50% | 1.5x to 1.8x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate | 46 | 102 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 46 | 102 |
Commercial Mortgage Loans | 0% - 50% | 1.2x to 1.5x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate | 57 | 12 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 57 | 12 |
Commercial Mortgage Loans | 0% - 50% | 1.0x to 1.2x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate | 0 | 24 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 0 | 24 |
Commercial Mortgage Loans | 0% - 50% | Less than 1.0x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate | 0 | 0 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 0 | 0 |
Commercial Mortgage Loans | 50% - 70% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate | 4,670 | 3,416 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 4,670 | 3,416 |
Commercial Mortgage Loans | 50% - 70% | Greater than 2.0x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate | 2,644 | 1,392 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 2,644 | 1,392 |
Commercial Mortgage Loans | 50% - 70% | 1.8x to 2.0x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate | 508 | 353 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 508 | 353 |
Commercial Mortgage Loans | 50% - 70% | 1.5x to 1.8x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate | 624 | 741 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 624 | 741 |
Commercial Mortgage Loans | 50% - 70% | 1.2x to 1.5x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate | 818 | 853 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 818 | 853 |
Commercial Mortgage Loans | 50% - 70% | 1.0x to 1.2x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate | 76 | 77 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 76 | 77 |
Commercial Mortgage Loans | 50% - 70% | Less than 1.0x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate | 0 | 0 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 0 | 0 |
Commercial Mortgage Loans | 70% - 90% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate | 663 | 651 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 663 | 651 |
Commercial Mortgage Loans | 70% - 90% | Greater than 2.0x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate | 251 | 141 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 251 | 141 |
Commercial Mortgage Loans | 70% - 90% | 1.8x to 2.0x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate | 64 | 0 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 64 | 0 |
Commercial Mortgage Loans | 70% - 90% | 1.5x to 1.8x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate | 132 | 206 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 132 | 206 |
Commercial Mortgage Loans | 70% - 90% | 1.2x to 1.5x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate | 142 | 134 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 142 | 134 |
Commercial Mortgage Loans | 70% - 90% | 1.0x to 1.2x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate | 28 | 124 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 28 | 124 |
Commercial Mortgage Loans | 70% - 90% | Less than 1.0x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate | 46 | 46 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 46 | 46 |
Commercial Mortgage Loans | 90% plus | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate | 75 | 109 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 75 | 109 |
Commercial Mortgage Loans | 90% plus | Greater than 2.0x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate | 33 | 63 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 33 | 63 |
Commercial Mortgage Loans | 90% plus | 1.8x to 2.0x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate | 0 | 0 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 0 | 0 |
Commercial Mortgage Loans | 90% plus | 1.5x to 1.8x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate | 27 | 0 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 27 | 0 |
Commercial Mortgage Loans | 90% plus | 1.2x to 1.5x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate | 15 | 46 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 15 | 46 |
Commercial Mortgage Loans | 90% plus | 1.0x to 1.2x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate | 0 | 0 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 0 | 0 |
Commercial Mortgage Loans | 90% plus | Less than 1.0x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate | 0 | 0 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 0 | 0 |
Commercial Mortgage Loans | 30 to 59 Days | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Financing receivables, recorded investment, past due | 0 | 0 |
Commercial Mortgage Loans | 60 to 89 Days | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Financing receivables, recorded investment, past due | 0 | 0 |
Commercial Mortgage Loans | 90 Days or More | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Financing receivables, recorded investment, past due | 0 | 30 |
Agricultural Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate | 2,470 | 2,330 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Financing receivables, recorded investment, past due | 36 | 23 |
Financing receivables, recorded investment, current | 2,434 | 2,307 |
Total financing receivables | 2,470 | 2,330 |
Financing receivable, recorded investment, 90 days or more past due and accruing | 19 | 4 |
Agricultural Mortgage Loans | Greater than 2.0x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate | 387 | 350 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 387 | 350 |
Agricultural Mortgage Loans | 1.8x to 2.0x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate | 200 | 196 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 200 | 196 |
Agricultural Mortgage Loans | 1.5x to 1.8x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate | 497 | 471 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 497 | 471 |
Agricultural Mortgage Loans | 1.2x to 1.5x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate | 789 | 734 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 789 | 734 |
Agricultural Mortgage Loans | 1.0x to 1.2x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate | 498 | 481 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 498 | 481 |
Agricultural Mortgage Loans | Less than 1.0x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate | 99 | 98 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 99 | 98 |
Agricultural Mortgage Loans | 0% - 50% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate | 1,451 | 1,336 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 1,451 | 1,336 |
Agricultural Mortgage Loans | 0% - 50% | Greater than 2.0x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate | 254 | 204 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 254 | 204 |
Agricultural Mortgage Loans | 0% - 50% | 1.8x to 2.0x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate | 137 | 116 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 137 | 116 |
Agricultural Mortgage Loans | 0% - 50% | 1.5x to 1.8x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate | 298 | 277 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 298 | 277 |
Agricultural Mortgage Loans | 0% - 50% | 1.2x to 1.5x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate | 438 | 432 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 438 | 432 |
Agricultural Mortgage Loans | 0% - 50% | 1.0x to 1.2x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate | 275 | 256 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 275 | 256 |
Agricultural Mortgage Loans | 0% - 50% | Less than 1.0x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate | 49 | 51 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 49 | 51 |
Agricultural Mortgage Loans | 50% - 70% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate | 1,010 | 988 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 1,010 | 988 |
Agricultural Mortgage Loans | 50% - 70% | Greater than 2.0x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate | 130 | 146 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 130 | 146 |
Agricultural Mortgage Loans | 50% - 70% | 1.8x to 2.0x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate | 63 | 80 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 63 | 80 |
Agricultural Mortgage Loans | 50% - 70% | 1.5x to 1.8x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate | 197 | 192 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 197 | 192 |
Agricultural Mortgage Loans | 50% - 70% | 1.2x to 1.5x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate | 347 | 298 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 347 | 298 |
Agricultural Mortgage Loans | 50% - 70% | 1.0x to 1.2x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate | 223 | 225 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 223 | 225 |
Agricultural Mortgage Loans | 50% - 70% | Less than 1.0x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate | 50 | 47 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 50 | 47 |
Agricultural Mortgage Loans | 70% - 90% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate | 9 | 6 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 9 | 6 |
Agricultural Mortgage Loans | 70% - 90% | Greater than 2.0x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate | 3 | 0 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 3 | 0 |
Agricultural Mortgage Loans | 70% - 90% | 1.8x to 2.0x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate | 0 | 0 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 0 | 0 |
Agricultural Mortgage Loans | 70% - 90% | 1.5x to 1.8x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate | 2 | 2 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 2 | 2 |
Agricultural Mortgage Loans | 70% - 90% | 1.2x to 1.5x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate | 4 | 4 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 4 | 4 |
Agricultural Mortgage Loans | 70% - 90% | 1.0x to 1.2x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate | 0 | 0 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 0 | 0 |
Agricultural Mortgage Loans | 70% - 90% | Less than 1.0x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate | 0 | 0 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 0 | 0 |
Agricultural Mortgage Loans | 90% plus | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate | 0 | 0 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 0 | 0 |
Agricultural Mortgage Loans | 90% plus | Greater than 2.0x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate | 0 | 0 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 0 | 0 |
Agricultural Mortgage Loans | 90% plus | 1.8x to 2.0x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate | 0 | 0 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 0 | 0 |
Agricultural Mortgage Loans | 90% plus | 1.5x to 1.8x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate | 0 | 0 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 0 | 0 |
Agricultural Mortgage Loans | 90% plus | 1.2x to 1.5x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate | 0 | 0 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 0 | 0 |
Agricultural Mortgage Loans | 90% plus | 1.0x to 1.2x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate | 0 | 0 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 0 | 0 |
Agricultural Mortgage Loans | 90% plus | Less than 1.0x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate | 0 | 0 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 0 | 0 |
Agricultural Mortgage Loans | 30 to 59 Days | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Financing receivables, recorded investment, past due | 5 | 12 |
Agricultural Mortgage Loans | 60 to 89 Days | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Financing receivables, recorded investment, past due | 12 | 7 |
Agricultural Mortgage Loans | 90 Days or More | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Financing receivables, recorded investment, past due | 19 | 4 |
Total Mortgages Loan | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate | 8,777 | 7,177 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Financing receivables, recorded investment, past due | 36 | 53 |
Financing receivables, recorded investment, current | 8,741 | 7,124 |
Total financing receivables | 8,777 | 7,177 |
Financing receivable, recorded investment, 90 days or more past due and accruing | 19 | 4 |
Total Mortgages Loan | With No Related Allowance Recorded | ||
Impaired Mortgage Loans [Abstract] | ||
Impaired financing receivable, recorded investment | 15 | 46 |
Impaired financing receivable, unpaid principal balance | 15 | 46 |
Related allowance | 0 | 0 |
Impaired financing receivable, average recorded investment | 23 | 15 |
Impaired financing receivable, interest income recognized | 0 | 0 |
Total Mortgages Loan | With Related Allowance Recorded | ||
Impaired Mortgage Loans [Abstract] | ||
Impaired financing receivable, recorded investment | 28 | 63 |
Impaired financing receivable, unpaid principal balance | 28 | 63 |
Related allowance | (8) | (6) |
Impaired financing receivable, average recorded investment | 53 | 137 |
Impaired financing receivable, interest income recognized | 2 | 4 |
Total Mortgages Loan | Greater than 2.0x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate | 3,960 | 2,479 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 3,960 | 2,479 |
Total Mortgages Loan | 1.8x to 2.0x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate | 923 | 549 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 923 | 549 |
Total Mortgages Loan | 1.5x to 1.8x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate | 1,326 | 1,520 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 1,326 | 1,520 |
Total Mortgages Loan | 1.2x to 1.5x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate | 1,821 | 1,779 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 1,821 | 1,779 |
Total Mortgages Loan | 1.0x to 1.2x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate | 602 | 706 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 602 | 706 |
Total Mortgages Loan | Less than 1.0x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate | 145 | 144 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 145 | 144 |
Total Mortgages Loan | 0% - 50% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate | 2,350 | 2,007 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 2,350 | 2,007 |
Total Mortgages Loan | 0% - 50% | Greater than 2.0x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate | 899 | 737 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 899 | 737 |
Total Mortgages Loan | 0% - 50% | 1.8x to 2.0x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate | 288 | 116 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 288 | 116 |
Total Mortgages Loan | 0% - 50% | 1.5x to 1.8x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate | 344 | 379 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 344 | 379 |
Total Mortgages Loan | 0% - 50% | 1.2x to 1.5x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate | 495 | 444 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 495 | 444 |
Total Mortgages Loan | 0% - 50% | 1.0x to 1.2x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate | 275 | 280 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 275 | 280 |
Total Mortgages Loan | 0% - 50% | Less than 1.0x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate | 49 | 51 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 49 | 51 |
Total Mortgages Loan | 50% - 70% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate | 5,680 | 4,404 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 5,680 | 4,404 |
Total Mortgages Loan | 50% - 70% | Greater than 2.0x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate | 2,774 | 1,538 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 2,774 | 1,538 |
Total Mortgages Loan | 50% - 70% | 1.8x to 2.0x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate | 571 | 433 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 571 | 433 |
Total Mortgages Loan | 50% - 70% | 1.5x to 1.8x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate | 821 | 933 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 821 | 933 |
Total Mortgages Loan | 50% - 70% | 1.2x to 1.5x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate | 1,165 | 1,151 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 1,165 | 1,151 |
Total Mortgages Loan | 50% - 70% | 1.0x to 1.2x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate | 299 | 302 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 299 | 302 |
Total Mortgages Loan | 50% - 70% | Less than 1.0x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate | 50 | 47 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 50 | 47 |
Total Mortgages Loan | 70% - 90% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate | 672 | 657 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 672 | 657 |
Total Mortgages Loan | 70% - 90% | Greater than 2.0x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate | 254 | 141 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 254 | 141 |
Total Mortgages Loan | 70% - 90% | 1.8x to 2.0x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate | 64 | 0 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 64 | 0 |
Total Mortgages Loan | 70% - 90% | 1.5x to 1.8x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate | 134 | 208 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 134 | 208 |
Total Mortgages Loan | 70% - 90% | 1.2x to 1.5x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate | 146 | 138 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 146 | 138 |
Total Mortgages Loan | 70% - 90% | 1.0x to 1.2x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate | 28 | 124 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 28 | 124 |
Total Mortgages Loan | 70% - 90% | Less than 1.0x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate | 46 | 46 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 46 | 46 |
Total Mortgages Loan | 90% plus | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate | 75 | 109 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 75 | 109 |
Total Mortgages Loan | 90% plus | Greater than 2.0x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate | 33 | 63 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 33 | 63 |
Total Mortgages Loan | 90% plus | 1.8x to 2.0x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate | 0 | 0 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 0 | 0 |
Total Mortgages Loan | 90% plus | 1.5x to 1.8x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate | 27 | 0 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 27 | 0 |
Total Mortgages Loan | 90% plus | 1.2x to 1.5x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate | 15 | 46 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 15 | 46 |
Total Mortgages Loan | 90% plus | 1.0x to 1.2x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate | 0 | 0 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 0 | 0 |
Total Mortgages Loan | 90% plus | Less than 1.0x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate | 0 | 0 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total financing receivables | 0 | 0 |
Total Mortgages Loan | 30 to 59 Days | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Financing receivables, recorded investment, past due | 5 | 12 |
Total Mortgages Loan | 60 to 89 Days | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Financing receivables, recorded investment, past due | 12 | 7 |
Total Mortgages Loan | 90 Days or More | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Financing receivables, recorded investment, past due | $ 19 | $ 34 |
INVESTMENTS (DERIVATIVES BY CAT
INVESTMENTS (DERIVATIVES BY CATEGORY) (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Derivatives, Fair Value [Line Items] | |||
Derivative, Notional Amount | $ 50,493 | $ 42,714 | |
Fair Value Assets Derivatives | 15,274 | 12,055 | |
Fair Value Liabilities Derivatives | 2,280 | 1,320 | |
Gains (losses) included in net earnings (loss) | 3,083 | $ 1,880 | |
Other Accrued Liabilities, Current | 3 | ||
Equity Futures | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, Notional Amount | 5,948 | 7,089 | |
Fair Value Assets Derivatives | 1 | 2 | |
Fair Value Liabilities Derivatives | 1 | 3 | |
Gains (losses) included in net earnings (loss) | (581) | 303 | |
Equity Swaps | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, Notional Amount | 3,357 | 1,359 | |
Fair Value Assets Derivatives | 5 | 8 | |
Fair Value Liabilities Derivatives | 108 | 21 | |
Gains (losses) included in net earnings (loss) | (193) | 54 | |
Equity Option | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, Notional Amount | 10,124 | 7,358 | |
Fair Value Assets Derivatives | 1,657 | 1,042 | |
Fair Value Liabilities Derivatives | 915 | 652 | |
Gains (losses) included in net earnings (loss) | 435 | (167) | |
Floors | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, Notional Amount | 1,500 | 1,800 | |
Fair Value Assets Derivatives | 23 | 61 | |
Fair Value Liabilities Derivatives | 0 | 0 | |
Gains (losses) included in net earnings (loss) | 4 | 17 | |
Interest Rate Swap | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, Notional Amount | 18,914 | 13,718 | |
Fair Value Assets Derivatives | 452 | 351 | |
Fair Value Liabilities Derivatives | 272 | 108 | |
Gains (losses) included in net earnings (loss) | 1,460 | 157 | |
Interest rate contracts Futures | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, Notional Amount | 7,405 | 8,685 | |
Fair Value Assets Derivatives | 0 | 0 | |
Fair Value Liabilities Derivatives | 0 | 0 | |
Gains (losses) included in net earnings (loss) | (23) | (152) | |
Interest Rate Swaption | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, Notional Amount | 0 | ||
Fair Value Assets Derivatives | 0 | ||
Fair Value Liabilities Derivatives | 0 | ||
Gains (losses) included in net earnings (loss) | 118 | ||
Credit Default Swaps | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, Notional Amount | 2,758 | 2,442 | |
Fair Value Assets Derivatives | 19 | 16 | |
Fair Value Liabilities Derivatives | 19 | 38 | |
Gains (losses) included in net earnings (loss) | 9 | (1) | |
Cross currency swaps | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, Notional Amount | 487 | ||
Fair Value Assets Derivatives | 4 | ||
Fair Value Liabilities Derivatives | 15 | ||
Gains (losses) included in net earnings (loss) | (13) | ||
Currency Contracts | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, Notional Amount | 263 | ||
Fair Value Assets Derivatives | 5 | ||
Fair Value Liabilities Derivatives | 4 | ||
Gains (losses) included in net earnings (loss) | 8 | ||
Investment Income | |||
Derivatives, Fair Value [Line Items] | |||
Gains (losses) included in net earnings (loss) | 1,098 | 337 | |
Gmib Reinsurance | |||
Derivatives, Fair Value [Line Items] | |||
Fair Value Assets Derivatives | 13,113 | 10,570 | |
Gains (losses) included in net earnings (loss) | 2,543 | 1,503 | |
GWBL and Other Features’ liability | |||
Derivatives, Fair Value [Line Items] | |||
Fair Value Liabilities Derivatives | 301 | 184 | |
Gains (losses) included in net earnings (loss) | (117) | (97) | |
SCS, SIO, MSO and IUL indexed features’ liability | |||
Derivatives, Fair Value [Line Items] | |||
Fair Value Liabilities Derivatives | 649 | $ 310 | |
Gains (losses) included in net earnings (loss) | $ (441) | $ 137 |
INVESTMENTS (EQUITY-BASED AND T
INVESTMENTS (EQUITY-BASED AND TREASURY FUTURE CONTRACTS) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Investments, Debt and Equity Securities [Abstract] | ||
Cash and securities collateral for derivative contract | $ 938 | $ 655 |
Collateralized derivative transactions | 67 | 5 |
Cash and securities collateral | 53 | 5 |
Exchange Traded Future Contract [Line Items] | ||
Securities purchased under agreements to resell | 0 | 79 |
Securities sold under agreement to repurchase | ||
Exchange Traded Future Contract [Line Items] | ||
Securities Sold under Agreements to Repurchase, Gross | 2,142 | $ 1,890 |
S&P 500, Russell 1000, NASDAQ 100 and Emerging Market Indices | ||
Exchange Traded Future Contract [Line Items] | ||
Exchange-Traded Future Contract, Initial Margin Requirement | 240 | |
Us Treasury Notes And Euro Dollar | ||
Exchange Traded Future Contract [Line Items] | ||
Exchange-Traded Future Contract, Initial Margin Requirement | 31 | |
Euro Stoxx, FTSE100, EAFE And Topix Indices | ||
Exchange Traded Future Contract [Line Items] | ||
Exchange-Traded Future Contract, Initial Margin Requirement | $ 20 |
INVESTMENTS (DERIVATIVES OFFSET
INVESTMENTS (DERIVATIVES OFFSETING FINANCIAL ASSETS) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Offsetting Assets [Line Items] | ||
Fair Value Assets Derivatives | $ 15,274 | $ 12,055 |
Accrued interest derivatives | 129 | 141 |
Reverse Repurchase agreements [Abstract] | ||
Securities purchased under agreements to resell, net amount presented in the Balance Sheet, | 0 | 79 |
Investment Management | ||
Offsetting Assets [Line Items] | ||
Net amounts presented in the balance sheets | 11 | 13 |
Equity Contract | ||
Offsetting Assets [Line Items] | ||
Gross amounts recognized | 1,661 | 1,049 |
Gross amounts offset in the balance sheets | 1,022 | 673 |
Net amounts presented in the balance sheets | 639 | 376 |
Interest Rate Contract | ||
Offsetting Assets [Line Items] | ||
Gross amounts recognized | 467 | 389 |
Gross amounts offset in the balance sheets | 270 | 104 |
Net amounts presented in the balance sheets | 197 | 285 |
Credit Default Swaps | ||
Offsetting Assets [Line Items] | ||
Gross amounts recognized | 18 | 14 |
Gross amounts offset in the balance sheets | 19 | 37 |
Net amounts presented in the balance sheets | (1) | (23) |
Fair Value Assets Derivatives | 19 | 16 |
Currency Swap | ||
Offsetting Assets [Line Items] | ||
Gross amounts recognized | 1 | |
Gross amounts offset in the balance sheets | 11 | |
Net amounts presented in the balance sheets | (10) | |
Fair Value Assets Derivatives | 4 | |
Derivatives Subject to an ISDA Master Agreements | ||
Offsetting Assets [Line Items] | ||
Gross amounts recognized | 2,147 | 1,452 |
Gross amounts offset in the balance sheets | 1,322 | 814 |
Net amounts presented in the balance sheets | 825 | 638 |
Derivatives not subject to an ISDA Master Agreements | ||
Offsetting Assets [Line Items] | ||
Gross amounts recognized | 8 | 20 |
Gross amounts offset in the balance sheets | 0 | 0 |
Net amounts presented in the balance sheets | 8 | 20 |
Total Derivatives | ||
Offsetting Assets [Line Items] | ||
Gross amounts recognized | 2,155 | 1,472 |
Gross amounts offset in the balance sheets | 1,322 | 814 |
Net amounts presented in the balance sheets | 833 | 658 |
Other Financial Instruments | ||
Offsetting Assets [Line Items] | ||
Gross amounts recognized | 1,242 | 1,271 |
Gross amounts offset in the balance sheets | 0 | 0 |
Net amounts presented in the balance sheets | 1,242 | 1,271 |
Other Invested Assets | ||
Offsetting Assets [Line Items] | ||
Gross amounts recognized | 3,397 | 2,743 |
Gross amounts offset in the balance sheets | 1,322 | 814 |
Net amounts presented in the balance sheets | 2,075 | 1,929 |
Securities purchased under agreement to resell | ||
Reverse Repurchase agreements [Abstract] | ||
Securities purchased under agreement to resell, gross amount recognized | 0 | 79 |
Securities purchased under agreement to resell, gross amount offset in the Balance Sheets | 0 | 0 |
Securities purchased under agreements to resell, net amount presented in the Balance Sheet, | 0 | 79 |
Exchange Traded Options | Investment Management | Long | ||
Offsetting Assets [Line Items] | ||
Fair Value Assets Derivatives | 4 | 6 |
Securities Borrowed | Investment Management | ||
Offsetting Assets [Line Items] | ||
Net amounts presented in the balance sheets | $ 43 | 75 |
Initial Margin | ||
Offsetting Assets [Line Items] | ||
Fair Value Assets Derivatives | $ (2) |
INVESTMENTS (DERIVATIVES OFFS49
INVESTMENTS (DERIVATIVES OFFSETING FINANCIAL LIABILITES ) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Offsetting Liabilities [Line Items] | ||
Fair Value Liabilities Derivatives | $ 2,280 | $ 1,320 |
Expense accrual | 3 | |
Repurchase agreements [Abstract] | ||
Repurchase agreements, net amount presented on the Balance Sheet | 2,145 | 1,890 |
Investment Management | ||
Offsetting Liabilities [Line Items] | ||
Derivative, Collateral, Obligation to Return Cash | (2) | |
Fair Value Liabilities Derivatives | 11 | 12 |
Equity Contract | ||
Offsetting Liabilities [Line Items] | ||
Gross amount recognized | 1,022 | 673 |
Gross amounts offset in the balance sheets | 1,022 | 673 |
Net amounts presented in the balance sheets | 0 | 0 |
Interest Rate Contract | ||
Offsetting Liabilities [Line Items] | ||
Gross amount recognized | 270 | 104 |
Gross amounts offset in the balance sheets | 270 | 104 |
Net amounts presented in the balance sheets | 0 | 0 |
Credit Default Swaps | ||
Offsetting Liabilities [Line Items] | ||
Gross amount recognized | 19 | 37 |
Gross amounts offset in the balance sheets | 19 | 37 |
Net amounts presented in the balance sheets | 0 | 0 |
Fair Value Liabilities Derivatives | 19 | 38 |
Currency Swap | ||
Offsetting Liabilities [Line Items] | ||
Gross amount recognized | 11 | |
Gross amounts offset in the balance sheets | 11 | |
Net amounts presented in the balance sheets | 0 | |
Fair Value Liabilities Derivatives | 15 | |
Derivatives Subject to an ISDA Master Agreements | ||
Offsetting Liabilities [Line Items] | ||
Gross amount recognized | 1,322 | 814 |
Gross amounts offset in the balance sheets | 1,322 | 814 |
Net amounts presented in the balance sheets | 0 | 0 |
Derivatives not subject to an ISDA Master Agreements | ||
Offsetting Liabilities [Line Items] | ||
Gross amount recognized | 0 | 0 |
Gross amounts offset in the balance sheets | 0 | 0 |
Net amounts presented in the balance sheets | 0 | 0 |
Total Derivatives | ||
Offsetting Liabilities [Line Items] | ||
Gross amount recognized | 1,322 | 814 |
Gross amounts offset in the balance sheets | 1,322 | 814 |
Net amounts presented in the balance sheets | 0 | 0 |
Other Financial Liabilities | ||
Offsetting Liabilities [Line Items] | ||
Gross amount recognized | 2,919 | 2,586 |
Gross amounts offset in the balance sheets | 0 | 0 |
Net amounts presented in the balance sheets | 2,919 | 2,586 |
Other Liabilities | ||
Offsetting Liabilities [Line Items] | ||
Gross amount recognized | 4,241 | 3,400 |
Gross amounts offset in the balance sheets | 1,322 | 814 |
Net amounts presented in the balance sheets | 2,919 | 2,586 |
Securities sold under agreement to repurchase | ||
Repurchase agreements [Abstract] | ||
Securities sold under agreements to repurchase, gross amount recognized | 2,142 | 1,890 |
Securities sold under agreement to repurchase, gross amount offset in the Balance Sheets | 0 | 0 |
Repurchase agreements, net amount presented on the Balance Sheet | 2,142 | 1,890 |
Exchange Traded Options | Investment Management | Short | ||
Offsetting Liabilities [Line Items] | ||
Fair Value Liabilities Derivatives | 4 | 1 |
Securities Loaned | Investment Management | ||
Offsetting Liabilities [Line Items] | ||
Net amounts presented in the balance sheets | 5 | 10 |
Securities sold under agreement to repurchase | ||
Repurchase agreements [Abstract] | ||
Repurchase agreements, net amount presented on the Balance Sheet | 2,142 | 1,890 |
Other Financial Instruments | ||
Offsetting Liabilities [Line Items] | ||
Derivative, Collateral, Obligation to Return Cash | 0 | 0 |
Total Derivatives | ||
Offsetting Liabilities [Line Items] | ||
Derivative, Collateral, Obligation to Return Cash | (765) | (605) |
Other | ||
Offsetting Liabilities [Line Items] | ||
Derivative, Collateral, Obligation to Return Cash | $ (765) | $ (605) |
INVESTMENTS (DERIVATIVES GROSS
INVESTMENTS (DERIVATIVES GROSS COLLATERAL AMOUNTS ASSETS) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Offsetting Assets [Line Items] | ||
Accrued interest derivatives | $ 129 | $ 141 |
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | 15,274 | 12,055 |
Reverse repurchase agreements [Abstract] | ||
Securities purchased under agreements to resell, net amount presented in the Balance Sheet, | 0 | 79 |
Investment Management | ||
Offsetting Assets [Line Items] | ||
Net amounts presented in the balance sheets | 11 | 13 |
Callateral Cash (Received) | (2) | |
Securities Borrowed | Investment Management | ||
Offsetting Assets [Line Items] | ||
Derivative Asset, Fair Value, Amount Offset Against Collateral | 43 | 75 |
Variable Interest Entity, Primary Beneficiary | Investment Management | ||
Offsetting Assets [Line Items] | ||
Callateral Cash (Received) | (1) | |
Securities sold under agreement to repurchase | ||
Reverse repurchase agreements [Abstract] | ||
Securities purchased under agreements to resell, net amount presented in the Balance Sheet, | 79 | |
Reverse repurchase agreements, collateral securities received | (79) | |
Reverse repurchase agreements, collateral cash received | 0 | |
Reverse repurchase agreements, net amounts | 0 | |
Securities sold under agreement to repurchase | Counterparty M | ||
Reverse repurchase agreements [Abstract] | ||
Securities purchased under agreements to resell, net amount presented in the Balance Sheet, | 28 | |
Reverse repurchase agreements, collateral securities received | (28) | |
Reverse repurchase agreements, collateral cash received | 0 | |
Reverse repurchase agreements, net amounts | 0 | |
Securities sold under agreement to repurchase | Counterparty V | ||
Reverse repurchase agreements [Abstract] | ||
Securities purchased under agreements to resell, net amount presented in the Balance Sheet, | 51 | |
Reverse repurchase agreements, collateral securities received | (51) | |
Reverse repurchase agreements, collateral cash received | 0 | |
Reverse repurchase agreements, net amounts | 0 | |
Other | ||
Offsetting Assets [Line Items] | ||
Net amounts presented in the balance sheets | 2,075 | 1,929 |
Calleteral Securities (Received) | (51) | (11) |
Callateral Cash (Received) | (765) | (605) |
Derivative Asset, Fair Value, Amount Offset Against Collateral | 1,259 | 1,313 |
Derivative | ||
Offsetting Assets [Line Items] | ||
Net amounts presented in the balance sheets | 833 | 658 |
Calleteral Securities (Received) | (51) | (11) |
Callateral Cash (Received) | (765) | (605) |
Derivative Asset, Fair Value, Amount Offset Against Collateral | 17 | 42 |
Derivative | Counterparty A | ||
Offsetting Assets [Line Items] | ||
Net amounts presented in the balance sheets | 64 | 52 |
Calleteral Securities (Received) | 0 | 0 |
Callateral Cash (Received) | (63) | (52) |
Derivative Asset, Fair Value, Amount Offset Against Collateral | 1 | 0 |
Derivative | Counterparty B | ||
Offsetting Assets [Line Items] | ||
Net amounts presented in the balance sheets | (43) | 9 |
Calleteral Securities (Received) | 0 | 0 |
Callateral Cash (Received) | 43 | (7) |
Derivative Asset, Fair Value, Amount Offset Against Collateral | 0 | 2 |
Derivative | Counterparty C | ||
Offsetting Assets [Line Items] | ||
Net amounts presented in the balance sheets | 44 | 61 |
Calleteral Securities (Received) | 0 | 0 |
Callateral Cash (Received) | (44) | (58) |
Derivative Asset, Fair Value, Amount Offset Against Collateral | 0 | 3 |
Derivative | Counterparty D | ||
Offsetting Assets [Line Items] | ||
Net amounts presented in the balance sheets | 239 | 222 |
Calleteral Securities (Received) | 0 | 0 |
Callateral Cash (Received) | (239) | (218) |
Derivative Asset, Fair Value, Amount Offset Against Collateral | 0 | 4 |
Derivative | Counterparty E | ||
Offsetting Assets [Line Items] | ||
Net amounts presented in the balance sheets | 19 | 53 |
Calleteral Securities (Received) | 0 | 0 |
Callateral Cash (Received) | (19) | (53) |
Derivative Asset, Fair Value, Amount Offset Against Collateral | 0 | 0 |
Derivative | Counterparty F | ||
Offsetting Assets [Line Items] | ||
Net amounts presented in the balance sheets | 40 | (2) |
Calleteral Securities (Received) | 0 | 0 |
Callateral Cash (Received) | (40) | 2 |
Derivative Asset, Fair Value, Amount Offset Against Collateral | 0 | 0 |
Derivative | Counterparty G | ||
Offsetting Assets [Line Items] | ||
Net amounts presented in the balance sheets | 213 | 129 |
Calleteral Securities (Received) | 0 | 0 |
Callateral Cash (Received) | (213) | (129) |
Derivative Asset, Fair Value, Amount Offset Against Collateral | 0 | 0 |
Derivative | Counterparty H | ||
Offsetting Assets [Line Items] | ||
Net amounts presented in the balance sheets | 56 | 16 |
Calleteral Securities (Received) | (51) | (11) |
Callateral Cash (Received) | 0 | (5) |
Derivative Asset, Fair Value, Amount Offset Against Collateral | 5 | 0 |
Derivative | Counterparty I | ||
Offsetting Assets [Line Items] | ||
Net amounts presented in the balance sheets | (8) | 44 |
Calleteral Securities (Received) | 0 | 0 |
Callateral Cash (Received) | 8 | (39) |
Derivative Asset, Fair Value, Amount Offset Against Collateral | 0 | 5 |
Derivative | Counterparty J | ||
Offsetting Assets [Line Items] | ||
Net amounts presented in the balance sheets | 77 | 19 |
Calleteral Securities (Received) | 0 | 0 |
Callateral Cash (Received) | (77) | (13) |
Derivative Asset, Fair Value, Amount Offset Against Collateral | 0 | 6 |
Derivative | Counterparty K | ||
Offsetting Assets [Line Items] | ||
Net amounts presented in the balance sheets | 67 | 17 |
Calleteral Securities (Received) | 0 | 0 |
Callateral Cash (Received) | (67) | (17) |
Derivative Asset, Fair Value, Amount Offset Against Collateral | 0 | 0 |
Derivative | Counterparty L | ||
Offsetting Assets [Line Items] | ||
Net amounts presented in the balance sheets | 2 | 7 |
Calleteral Securities (Received) | 0 | 0 |
Callateral Cash (Received) | (2) | (7) |
Derivative Asset, Fair Value, Amount Offset Against Collateral | 0 | 0 |
Derivative | Counterparty M | ||
Offsetting Assets [Line Items] | ||
Net amounts presented in the balance sheets | 12 | 11 |
Calleteral Securities (Received) | 0 | 0 |
Callateral Cash (Received) | (12) | (10) |
Derivative Asset, Fair Value, Amount Offset Against Collateral | 0 | 1 |
Derivative | Counterparty N | ||
Offsetting Assets [Line Items] | ||
Net amounts presented in the balance sheets | 8 | 20 |
Calleteral Securities (Received) | 0 | 0 |
Callateral Cash (Received) | 0 | 0 |
Derivative Asset, Fair Value, Amount Offset Against Collateral | 8 | 20 |
Derivative | Counterparty Q | ||
Offsetting Assets [Line Items] | ||
Net amounts presented in the balance sheets | 6 | 0 |
Calleteral Securities (Received) | 0 | 0 |
Callateral Cash (Received) | (6) | 0 |
Derivative Asset, Fair Value, Amount Offset Against Collateral | 0 | 0 |
Derivative | Counterparty T | ||
Offsetting Assets [Line Items] | ||
Net amounts presented in the balance sheets | (1) | (3) |
Calleteral Securities (Received) | 0 | 0 |
Callateral Cash (Received) | 1 | 3 |
Derivative Asset, Fair Value, Amount Offset Against Collateral | 0 | 0 |
Derivative | Counterparty U | ||
Offsetting Assets [Line Items] | ||
Net amounts presented in the balance sheets | (16) | 0 |
Calleteral Securities (Received) | 0 | 0 |
Callateral Cash (Received) | 16 | 1 |
Derivative Asset, Fair Value, Amount Offset Against Collateral | 0 | 1 |
Derivative | Counterparty V | ||
Offsetting Assets [Line Items] | ||
Net amounts presented in the balance sheets | 54 | 3 |
Calleteral Securities (Received) | 0 | 0 |
Callateral Cash (Received) | (51) | (3) |
Derivative Asset, Fair Value, Amount Offset Against Collateral | 3 | 0 |
Other Financial Instruments | ||
Offsetting Assets [Line Items] | ||
Net amounts presented in the balance sheets | 1,242 | 1,271 |
Calleteral Securities (Received) | 0 | 0 |
Callateral Cash (Received) | 0 | 0 |
Derivative Asset, Fair Value, Amount Offset Against Collateral | 1,242 | $ 1,271 |
Securities purchased under agreement to resell | ||
Reverse repurchase agreements [Abstract] | ||
Securities purchased under agreements to resell, net amount presented in the Balance Sheet, | 0 | |
Reverse repurchase agreements, collateral securities received | 0 | |
Reverse repurchase agreements, collateral cash received | 0 | |
Reverse repurchase agreements, net amounts | 0 | |
Initial Margin | ||
Offsetting Assets [Line Items] | ||
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | $ 41 |
INVESTMENTS (DERIVATIVES GROS51
INVESTMENTS (DERIVATIVES GROSS COLLATERAL AMOUNTS LIABILITES) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Offsetting Liabilities [Line Items] | ||
Repurchase agreements, net amount presented on the balance sheet | $ 2,145 | $ 1,890 |
Investment Management | ||
Offsetting Liabilities [Line Items] | ||
Repurchase agreements, collateral cash held | (12) | |
Securities Sold under Agreements to Repurchase [Member] | ||
Offsetting Liabilities [Line Items] | ||
Repurchase agreements, net amount presented on the balance sheet | 2,142 | 1,890 |
Repurchase agreements, collateral securities held | (2,066) | (1,861) |
Repurchase agreements, collateral cash held | (47) | (29) |
Securities Sold under Agreements to Repurchase, Amount Offset Against Collateral | 29 | 0 |
Securities Sold under Agreements to Repurchase [Member] | Counterparty D | ||
Offsetting Liabilities [Line Items] | ||
Repurchase agreements, net amount presented on the balance sheet | 834 | 234 |
Repurchase agreements, collateral securities held | (802) | (234) |
Repurchase agreements, collateral cash held | (20) | 0 |
Securities Sold under Agreements to Repurchase, Amount Offset Against Collateral | 12 | 0 |
Securities Sold under Agreements to Repurchase [Member] | Counterparty C | ||
Offsetting Liabilities [Line Items] | ||
Repurchase agreements, net amount presented on the balance sheet | 1,033 | |
Repurchase agreements, collateral securities held | (1,016) | |
Repurchase agreements, collateral cash held | (17) | |
Securities Sold under Agreements to Repurchase, Amount Offset Against Collateral | 0 | |
Securities Sold under Agreements to Repurchase [Member] | Counterparty M | ||
Offsetting Liabilities [Line Items] | ||
Repurchase agreements, net amount presented on the balance sheet | 518 | 623 |
Repurchase agreements, collateral securities held | (508) | (611) |
Repurchase agreements, collateral cash held | (5) | (12) |
Securities Sold under Agreements to Repurchase, Amount Offset Against Collateral | 5 | 0 |
Securities Sold under Agreements to Repurchase [Member] | Counterparty H | ||
Offsetting Liabilities [Line Items] | ||
Repurchase agreements, net amount presented on the balance sheet | 236 | |
Repurchase agreements, collateral securities held | (227) | |
Repurchase agreements, collateral cash held | (6) | |
Securities Sold under Agreements to Repurchase, Amount Offset Against Collateral | 3 | |
Securities Sold under Agreements to Repurchase [Member] | Counterparty W | ||
Offsetting Liabilities [Line Items] | ||
Repurchase agreements, net amount presented on the balance sheet | 554 | |
Repurchase agreements, collateral securities held | (529) | |
Repurchase agreements, collateral cash held | (16) | |
Securities Sold under Agreements to Repurchase, Amount Offset Against Collateral | 9 | |
Securities Loaned | ||
Offsetting Liabilities [Line Items] | ||
Securities Sold under Agreements to Repurchase, Amount Offset Against Collateral | 5 | $ 10 |
Variable Interest Entity, Primary Beneficiary | Investment Management | ||
Offsetting Liabilities [Line Items] | ||
Repurchase agreements, collateral cash held | $ (8) |
INVESTMENTS (REPURCHASE AGREEME
INVESTMENTS (REPURCHASE AGREEMENTS ACCCOUNTED FOR AS BORROWINGS) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Repurchase agreements accounted for as secured borrowings [Line Items] | ||
Repurchase agreements | $ 2,142 | $ 1,890 |
Reverse repurchase agreements | 0 | 79 |
Maturity Overnight | ||
Repurchase agreements accounted for as secured borrowings [Line Items] | ||
Repurchase agreements | 0 | 0 |
Reverse repurchase agreements | 0 | 0 |
Maturity up to 30 days | ||
Repurchase agreements accounted for as secured borrowings [Line Items] | ||
Repurchase agreements | 2,142 | 1,865 |
Reverse repurchase agreements | 0 | 79 |
Maturity 30 to 90 Days | ||
Repurchase agreements accounted for as secured borrowings [Line Items] | ||
Repurchase agreements | 0 | 25 |
Reverse repurchase agreements | 0 | 0 |
Maturity over 90 days | ||
Repurchase agreements accounted for as secured borrowings [Line Items] | ||
Repurchase agreements | 0 | 0 |
Reverse repurchase agreements | 0 | 0 |
U.S. Treasury, government and agency | ||
Repurchase agreements accounted for as secured borrowings [Line Items] | ||
Repurchase agreements | 2,142 | 1,890 |
U.S. Treasury, government and agency | Maturity Overnight | ||
Repurchase agreements accounted for as secured borrowings [Line Items] | ||
Repurchase agreements | 0 | 0 |
U.S. Treasury, government and agency | Maturity up to 30 days | ||
Repurchase agreements accounted for as secured borrowings [Line Items] | ||
Repurchase agreements | 2,142 | 1,865 |
U.S. Treasury, government and agency | Maturity 30 to 90 Days | ||
Repurchase agreements accounted for as secured borrowings [Line Items] | ||
Repurchase agreements | 0 | 25 |
U.S. Treasury, government and agency | Maturity over 90 days | ||
Repurchase agreements accounted for as secured borrowings [Line Items] | ||
Repurchase agreements | 0 | 0 |
Public corporate | ||
Repurchase agreements accounted for as secured borrowings [Line Items] | ||
Reverse repurchase agreements | 0 | 79 |
Public corporate | Maturity Overnight | ||
Repurchase agreements accounted for as secured borrowings [Line Items] | ||
Reverse repurchase agreements | 0 | 0 |
Public corporate | Maturity up to 30 days | ||
Repurchase agreements accounted for as secured borrowings [Line Items] | ||
Reverse repurchase agreements | 0 | 79 |
Public corporate | Maturity 30 to 90 Days | ||
Repurchase agreements accounted for as secured borrowings [Line Items] | ||
Reverse repurchase agreements | 0 | 0 |
Public corporate | Maturity over 90 days | ||
Repurchase agreements accounted for as secured borrowings [Line Items] | ||
Reverse repurchase agreements | 0 | 0 |
Investment Management | ||
Repurchase agreements accounted for as secured borrowings [Line Items] | ||
Net amounts presented in the balance sheets | 11 | 13 |
Securities Loaned | 0 | 0 |
Securities Borrowed | Investment Management | ||
Repurchase agreements accounted for as secured borrowings [Line Items] | ||
Net amounts presented in the balance sheets | $ 43 | $ 75 |
CLOSED BLOCK (Details)
CLOSED BLOCK (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Dec. 31, 2014 |
CLOSED BLOCK LIABILITIES: | ||||
Future policy benefits, policyholders’ account balances and other | $ 7,206 | $ 7,363 | ||
Policyholder dividend obligation | 216 | 81 | $ 128 | $ 201 |
Other liabilities | 45 | 100 | ||
Total Closed Block liabilities | 7,467 | 7,544 | ||
ASSETS DESIGNATED TO THE CLOSED BLOCK: | ||||
Fixed maturities, available for sale, at fair value (amortized cost of $3,950 and $4,426) | 4,237 | 4,599 | ||
Mortgage loans on real estate | 1,594 | 1,575 | ||
Policy loans | 850 | 881 | ||
Cash and other invested assets | 444 | 49 | ||
Other assets | 172 | 258 | ||
Total assets designated to the Closed Block | 7,297 | 7,362 | ||
Excess of Closed Block liabilities over assets designated to the Closed Block | 170 | 182 | ||
Closed Block Assets and Liabilities, Effect on Other Comprehensive Income (Loss) [Abstract] | ||||
Net unrealized investment gains (losses), net of deferred income tax (expense) benefit of $(29) and $(36) and policyholder dividend obligation of $(216) and $(81) | 53 | 67 | ||
Maximum Future Earnings To Be Recognized From Closed Block Assets and Liabilities | $ 223 | $ 249 |
CLOSED BLOCK (REVENUES AND EXPE
CLOSED BLOCK (REVENUES AND EXPENSES) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | |
REVENUES: | ||||||
Premiums and other income | $ 55 | $ 59 | $ 177 | $ 194 | ||
Net investment income (loss) | 96 | 88 | 270 | 279 | ||
Net investment gains (losses) | 0 | 5 | 1 | 4 | ||
Total revenues | 151 | 152 | 448 | 477 | ||
BENEFITS AND OTHER DEDUCTIONS: | ||||||
Policyholders’ benefits and dividends | 131 | 154 | 404 | 450 | ||
Other operating costs and expenses | 1 | 1 | 3 | 2 | ||
Total benefits and other deductions | 132 | 155 | 407 | 452 | ||
Net revenues (loss) before income taxes | 19 | (3) | 41 | 25 | ||
Income tax (expense) benefit | (7) | 1 | (15) | (9) | ||
Net Revenues (Losses) | 12 | (2) | 26 | 16 | ||
Closed Block Investments, Fixed Maturity, Available-for-sale, Amortized Cost | 3,950 | 3,950 | $ 4,426 | |||
Closed Block Operations, Deferred Income Tax (Expense) Benefit | (29) | (29) | (36) | |||
Closed Block Liabilities Policyholder Dividend Obligation | $ (216) | $ (128) | $ (216) | $ (128) | $ (81) | $ (201) |
CLOSED BLOCK (RECONCILIATION OF
CLOSED BLOCK (RECONCILIATION OF POLICYHOLDER DIVIDEND OBLIGATION) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Movement in Closed Block Dividend Obligation [Roll Forward] | ||
Balances, beginning of year | $ 81 | $ 201 |
Unrealized investment gains (losses), net of DAC | 135 | (73) |
Balances, end of year | $ 216 | $ 128 |
GMDB, GMIB, GIB, GWBL AND OTH56
GMDB, GMIB, GIB, GWBL AND OTHER FEATURES AND NO LAPSE GUARANTEE FEATURES (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Movement In Guaranteed Benefit Liability Gross [Line Items] | ||
Balance, beginning of period | $ 8,283 | $ 7,373 |
Paid guarantee benefits | (529) | (274) |
Other changes in reserve | 1,661 | 1,197 |
Balance, end of period | 9,415 | 8,296 |
Guaranteed Minimum Death Benefit | ||
Movement In Guaranteed Benefit Liability Gross [Line Items] | ||
Balance, beginning of period | 2,986 | 1,729 |
Paid guarantee benefits | (280) | (229) |
Other changes in reserve | 491 | 413 |
Balance, end of period | 3,197 | 1,913 |
Guaranteed Minimum Income Benefit | ||
Movement In Guaranteed Benefit Liability Gross [Line Items] | ||
Balance, beginning of period | 5,297 | 5,644 |
Paid guarantee benefits | (249) | (45) |
Other changes in reserve | 1,170 | 784 |
Balance, end of period | $ 6,218 | $ 6,383 |
GMDB, GMIB, GIB, GWBL AND OTH57
GMDB, GMIB, GIB, GWBL AND OTHER FEATURES AND NO LAPSE GUARANTEE FEATURES 1 (Details) - Guaranteed Minimum Death Benefit - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Guaranteed Minimum Death Benefit Reinsurance Ceded [Abstract] | ||
Balance, beginning of year | $ 1,430 | $ 832 |
Paid guarantee benefits | (137) | (108) |
Other changes in reserve | 253 | 193 |
Balance, End of Period | $ 1,546 | $ 917 |
GMDB, GMIB, GIB, GWBL AND OTH58
GMDB, GMIB, GIB, GWBL AND OTHER FEATURES AND NO LAPSE GUARANTEE FEATURES 2 (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2016 | Dec. 31, 2015 | |
Net Amount at Risk by Product and Guarantee [Line Items] | |||
SCS, SIO, MSO, IUL, GWBL and other guaranteed benefits related liability | $ 950 | $ 950 | $ 494 |
Buyback program, option to elect partial buyout (as a percent) | 50.00% | ||
Impact on earnings from LSO offer to policyholders | 4 | ||
Guaranteed Minimum Death Benefit | |||
Net Amount at Risk by Product and Guarantee [Line Items] | |||
Account Value Invested In General Account | 13,983 | 13,983 | |
Account Value Invested In Separate Accounts | 86,356 | 86,356 | $ 84,640 |
Net amount at risk, gross | 19,126 | 19,126 | |
Net amount at risk, net of amounts reinsured | $ 8,982 | $ 8,982 | |
Average attained age of contractholders (in years) | 55 years 2 months 12 days | ||
Percentage of contractholders over age 70 | 17.10% | ||
Guaranteed Minimum Death Benefit | Minimum | |||
Net Amount at Risk by Product and Guarantee [Line Items] | |||
Range of contractually specified interest rates (as a percent) | 3.00% | ||
Guaranteed Minimum Death Benefit | Maximum | |||
Net Amount at Risk by Product and Guarantee [Line Items] | |||
Range of contractually specified interest rates (as a percent) | 6.50% | ||
Guaranteed Minimum Death Benefit | Return of Premium | |||
Net Amount at Risk by Product and Guarantee [Line Items] | |||
Account Value Invested In General Account | $ 13,552 | $ 13,552 | |
Account Value Invested In Separate Accounts | 40,144 | 40,144 | |
Net amount at risk, gross | 252 | 252 | |
Net amount at risk, net of amounts reinsured | $ 252 | $ 252 | |
Average attained age of contractholders (in years) | 51 years 3 months 18 days | ||
Percentage of contractholders over age 70 | 9.20% | ||
Guaranteed Minimum Death Benefit | Ratchet | |||
Net Amount at Risk by Product and Guarantee [Line Items] | |||
Account Value Invested In General Account | $ 124 | $ 124 | |
Account Value Invested In Separate Accounts | 8,857 | 8,857 | |
Net amount at risk, gross | 190 | 190 | |
Net amount at risk, net of amounts reinsured | $ 133 | $ 133 | |
Average attained age of contractholders (in years) | 65 years 8 months 12 days | ||
Percentage of contractholders over age 70 | 36.60% | ||
Guaranteed Minimum Death Benefit | Roll-Up | |||
Net Amount at Risk by Product and Guarantee [Line Items] | |||
Account Value Invested In General Account | $ 74 | $ 74 | |
Account Value Invested In Separate Accounts | 3,420 | 3,420 | |
Net amount at risk, gross | 2,318 | 2,318 | |
Net amount at risk, net of amounts reinsured | $ 1,576 | $ 1,576 | |
Average attained age of contractholders (in years) | 72 years 2 months 12 days | ||
Percentage of contractholders over age 70 | 59.70% | ||
Guaranteed Minimum Death Benefit | Roll-Up | Minimum | |||
Net Amount at Risk by Product and Guarantee [Line Items] | |||
Range of contractually specified interest rates (as a percent) | 3.00% | ||
Guaranteed Minimum Death Benefit | Roll-Up | Maximum | |||
Net Amount at Risk by Product and Guarantee [Line Items] | |||
Range of contractually specified interest rates (as a percent) | 6.00% | ||
Guaranteed Minimum Death Benefit | Roll-Up | |||
Net Amount at Risk by Product and Guarantee [Line Items] | |||
Account Value Invested In General Account | $ 233 | $ 233 | |
Account Value Invested In Separate Accounts | 33,935 | 33,935 | |
Net amount at risk, gross | 16,366 | 16,366 | |
Net amount at risk, net of amounts reinsured | $ 7,021 | $ 7,021 | |
Average attained age of contractholders (in years) | 66 years 10 months 24 days | ||
Percentage of contractholders over age 70 | 40.00% | ||
Guaranteed Minimum Death Benefit | Roll-Up | Minimum | |||
Net Amount at Risk by Product and Guarantee [Line Items] | |||
Range of contractually specified interest rates (as a percent) | 3.00% | ||
Guaranteed Minimum Death Benefit | Roll-Up | Maximum | |||
Net Amount at Risk by Product and Guarantee [Line Items] | |||
Range of contractually specified interest rates (as a percent) | 6.50% | ||
Guaranteed Minimum Income Benefit | |||
Net Amount at Risk by Product and Guarantee [Line Items] | |||
Account Value Invested In General Account | $ 370 | $ 370 | |
Account Value Invested In Separate Accounts | 57,560 | 57,560 | $ 56,559 |
Net amount at risk, gross | 10,172 | 10,172 | |
Net amount at risk, net of amounts reinsured | $ 2,695 | $ 2,695 | |
Weighted average years remaining until annuitization | 1 year 4 months 24 days | ||
Guaranteed Minimum Income Benefit | Minimum | |||
Net Amount at Risk by Product and Guarantee [Line Items] | |||
Range of contractually specified interest rates (as a percent) | 3.00% | ||
Guaranteed Minimum Income Benefit | Maximum | |||
Net Amount at Risk by Product and Guarantee [Line Items] | |||
Range of contractually specified interest rates (as a percent) | 6.50% | ||
Guaranteed Minimum Income Benefit | Roll-Up | |||
Net Amount at Risk by Product and Guarantee [Line Items] | |||
Account Value Invested In General Account | $ 35 | $ 35 | |
Account Value Invested In Separate Accounts | 17,592 | 17,592 | |
Net amount at risk, gross | 1,322 | 1,322 | |
Net amount at risk, net of amounts reinsured | $ 406 | $ 406 | |
Weighted average years remaining until annuitization | 1 year 7 months 6 days | ||
Guaranteed Minimum Income Benefit | Roll-Up | Minimum | |||
Net Amount at Risk by Product and Guarantee [Line Items] | |||
Range of contractually specified interest rates (as a percent) | 3.00% | ||
Guaranteed Minimum Income Benefit | Roll-Up | Maximum | |||
Net Amount at Risk by Product and Guarantee [Line Items] | |||
Range of contractually specified interest rates (as a percent) | 6.00% | ||
Guaranteed Minimum Income Benefit | Roll-Up | |||
Net Amount at Risk by Product and Guarantee [Line Items] | |||
Account Value Invested In General Account | $ 335 | $ 335 | |
Account Value Invested In Separate Accounts | 39,968 | 39,968 | |
Net amount at risk, gross | 8,850 | 8,850 | |
Net amount at risk, net of amounts reinsured | $ 2,289 | $ 2,289 | |
Weighted average years remaining until annuitization | 1 year 4 months 24 days | ||
Guaranteed Minimum Income Benefit | Roll-Up | Minimum | |||
Net Amount at Risk by Product and Guarantee [Line Items] | |||
Range of contractually specified interest rates (as a percent) | 3.00% | ||
Guaranteed Minimum Income Benefit | Roll-Up | Maximum | |||
Net Amount at Risk by Product and Guarantee [Line Items] | |||
Range of contractually specified interest rates (as a percent) | 6.50% | ||
Non Affiliated Entity [Member] | Guaranteed Minimum Death Benefit | |||
Net Amount at Risk by Product and Guarantee [Line Items] | |||
Exposure Reinsured Percentage, Quota Share of Liabilities for Variable Annuities | 3.90% | 3.90% | |
Non Affiliated Entity [Member] | Guaranteed Minimum Income Benefit | |||
Net Amount at Risk by Product and Guarantee [Line Items] | |||
Exposure Reinsured Percentage, Quota Share of Liabilities for Variable Annuities | 17.90% | 17.90% | |
Affiliates | Guaranteed Minimum Death Benefit | |||
Net Amount at Risk by Product and Guarantee [Line Items] | |||
Exposure Reinsured Percentage, Quota Share of Liabilities for Variable Annuities | 49.10% | 49.10% | |
Affiliates | Guaranteed Minimum Income Benefit | |||
Net Amount at Risk by Product and Guarantee [Line Items] | |||
Exposure Reinsured Percentage, Quota Share of Liabilities for Variable Annuities | 55.60% | 55.60% |
GMDB, GMIB, GIB, GWBL AND OTH59
GMDB, GMIB, GIB, GWBL AND OTHER FEATURES AND NO LAPSE GUARANTEE FEATURES 3 (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Guaranteed Minimum Death Benefit | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Separate Account Investments by Investment Category | $ 86,356 | $ 84,640 |
Price Risk Fair Value Hedge Derivative On Balance Sheet [Abstract] | ||
Account value hedged of variable annuity contracts | 51,698 | |
Net amount at risk hedged of variable annuity contracts | 7,862 | |
Guaranteed Minimum Income Benefit | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Separate Account Investments by Investment Category | 57,560 | 56,559 |
Price Risk Fair Value Hedge Derivative On Balance Sheet [Abstract] | ||
Account value hedged of variable annuity contracts | 38,172 | |
Net amount at risk hedged of variable annuity contracts | 3,808 | |
Equity | Guaranteed Minimum Death Benefit | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Separate Account Investments by Investment Category | 68,655 | 66,230 |
Equity | Guaranteed Minimum Income Benefit | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Separate Account Investments by Investment Category | 45,339 | 43,874 |
Fixed income | Guaranteed Minimum Death Benefit | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Separate Account Investments by Investment Category | 2,630 | 2,686 |
Fixed income | Guaranteed Minimum Income Benefit | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Separate Account Investments by Investment Category | 1,772 | 1,819 |
Balanced | Guaranteed Minimum Death Benefit | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Separate Account Investments by Investment Category | 14,718 | 15,350 |
Balanced | Guaranteed Minimum Income Benefit | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Separate Account Investments by Investment Category | 10,296 | 10,696 |
Other | Guaranteed Minimum Death Benefit | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Separate Account Investments by Investment Category | 353 | 374 |
Other | Guaranteed Minimum Income Benefit | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Separate Account Investments by Investment Category | $ 153 | $ 170 |
GMDB, GMIB, GIB, GWBL AND OTH60
GMDB, GMIB, GIB, GWBL AND OTHER FEATURES AND NO LAPSE GUARANTEE FEATURES 4 (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Direct Liability, Gross [Roll Forward] | ||
Balance, beginning of period | $ 8,283 | $ 7,373 |
Balance, end of period | 9,415 | 8,296 |
Direct Liability | ||
Direct Liability, Gross [Roll Forward] | ||
Balance, beginning of period | 1,084 | 964 |
Other changes in reserves | 36 | 116 |
Balance, end of period | 1,120 | 1,080 |
Reinsurance Ceded | ||
Reinsurance Ceded [Roll Forward] | ||
Balance, beginning of period | (539) | (555) |
Other changes in reserves | (66) | 38 |
Balance, end of period | (605) | (517) |
Net | ||
Direct Liability, Net [Roll Forward] | ||
Balance, beginning of period | 545 | 409 |
Other changes in reserves | (30) | 154 |
Balance, end of period | $ 515 | $ 563 |
FAIR VALUE DISCLOSURES (FAIR VA
FAIR VALUE DISCLOSURES (FAIR VALUE MEASUREMENTS) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Investment Fair Value Disclosure [Abstract] | ||
Fixed maturities, available-for-sale | $ 36,566 | $ 31,925 |
Trading securities | 8,702 | 6,805 |
Fair Value, Measurements, Recurring | ||
Investment Fair Value Disclosure [Abstract] | ||
Fixed maturities, available-for-sale | 36,480 | 31,893 |
Other equity investments | 81 | 146 |
Trading securities | 8,702 | 6,805 |
Other invested assets | 1,128 | 1,028 |
Cash equivalents | 2,696 | 2,150 |
Segregated securities | 492 | 565 |
GMIB reinsurance contract asset | 13,113 | 10,570 |
Separate Accounts’ assets | 109,946 | 107,335 |
Total Assets | 172,847 | 160,492 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Contingent payment arrangements | 18 | 31 |
Total Liabilities | 972 | 525 |
Fair Value, Measurements, Recurring | Corporate | ||
Investment Fair Value Disclosure [Abstract] | ||
Fixed maturities, available-for-sale | 14,260 | 13,376 |
Fair Value, Measurements, Recurring | Private corporate | ||
Investment Fair Value Disclosure [Abstract] | ||
Fixed maturities, available-for-sale | 7,335 | 6,926 |
Fair Value, Measurements, Recurring | U.S. Treasury, government and agency | ||
Investment Fair Value Disclosure [Abstract] | ||
Fixed maturities, available-for-sale | 12,357 | 8,775 |
Fair Value, Measurements, Recurring | State and Political Sub- divisions | ||
Investment Fair Value Disclosure [Abstract] | ||
Fixed maturities, available-for-sale | 524 | 504 |
Fair Value, Measurements, Recurring | Foreign Govts | ||
Investment Fair Value Disclosure [Abstract] | ||
Fixed maturities, available-for-sale | 394 | 415 |
Fair Value, Measurements, Recurring | Commercial Mortgage- backed | ||
Investment Fair Value Disclosure [Abstract] | ||
Fixed maturities, available-for-sale | 396 | 533 |
Fair Value, Measurements, Recurring | Residential Mortgage- backed | ||
Investment Fair Value Disclosure [Abstract] | ||
Fixed maturities, available-for-sale | 552 | 640 |
Fair Value, Measurements, Recurring | Asset- backed | ||
Investment Fair Value Disclosure [Abstract] | ||
Fixed maturities, available-for-sale | 61 | 77 |
Fair Value, Measurements, Recurring | Redeemable Preferred Stock | ||
Investment Fair Value Disclosure [Abstract] | ||
Fixed maturities, available-for-sale | 601 | 647 |
Fair Value, Measurements, Recurring | Short-term investments | ||
Investment Fair Value Disclosure [Abstract] | ||
Other invested assets | 297 | 369 |
Fair Value, Measurements, Recurring | Swaps | ||
Investment Fair Value Disclosure [Abstract] | ||
Other invested assets | 77 | 230 |
Fair Value, Measurements, Recurring | Credit Default Swaps | ||
Investment Fair Value Disclosure [Abstract] | ||
Other invested assets | 0 | (22) |
Fair Value, Measurements, Recurring | Futures | ||
Investment Fair Value Disclosure [Abstract] | ||
Other invested assets | 0 | (1) |
Fair Value, Measurements, Recurring | Options | ||
Investment Fair Value Disclosure [Abstract] | ||
Other invested assets | 742 | 390 |
Fair Value, Measurements, Recurring | Floors | ||
Investment Fair Value Disclosure [Abstract] | ||
Other invested assets | 23 | 61 |
Fair Value, Measurements, Recurring | Currency Contracts | ||
Investment Fair Value Disclosure [Abstract] | ||
Other invested assets | (11) | 1 |
Fair Value, Measurements, Recurring | GWBL and Other Features’ liability | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Guarantees, Fair Value Disclosure | 301 | 184 |
Fair Value, Measurements, Recurring | SCS, SIO, MSO and IUL indexed features’ liability | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Guarantees, Fair Value Disclosure | 649 | 310 |
Fair Value, Measurements, Recurring | Level 1 | ||
Investment Fair Value Disclosure [Abstract] | ||
Fixed maturities, available-for-sale | 238 | 258 |
Other equity investments | 75 | 97 |
Trading securities | 499 | 654 |
Other invested assets | 0 | (1) |
Cash equivalents | 2,696 | 2,150 |
Segregated securities | 0 | |
Separate Accounts’ assets | 107,335 | 104,058 |
Total Assets | 110,872 | 107,216 |
Fair Value, Measurements, Recurring | Level 1 | Corporate | ||
Investment Fair Value Disclosure [Abstract] | ||
Fixed maturities, available-for-sale | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Redeemable Preferred Stock | ||
Investment Fair Value Disclosure [Abstract] | ||
Fixed maturities, available-for-sale | 238 | 258 |
Fair Value, Measurements, Recurring | Level 1 | Futures | ||
Investment Fair Value Disclosure [Abstract] | ||
Other invested assets | 0 | (1) |
Fair Value, Measurements, Recurring | Level 2 | ||
Investment Fair Value Disclosure [Abstract] | ||
Fixed maturities, available-for-sale | 35,060 | 30,626 |
Other equity investments | 0 | 0 |
Trading securities | 8,203 | 6,151 |
Other invested assets | 1,128 | 1,029 |
Cash equivalents | 0 | |
Segregated securities | 492 | 565 |
Separate Accounts’ assets | 2,296 | 2,964 |
Total Assets | 47,356 | 41,335 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Total Liabilities | 653 | 310 |
Fair Value, Measurements, Recurring | Level 2 | Corporate | ||
Investment Fair Value Disclosure [Abstract] | ||
Fixed maturities, available-for-sale | 14,204 | 13,345 |
Fair Value, Measurements, Recurring | Level 2 | Private corporate | ||
Investment Fair Value Disclosure [Abstract] | ||
Fixed maturities, available-for-sale | 6,652 | 6,537 |
Fair Value, Measurements, Recurring | Level 2 | U.S. Treasury, government and agency | ||
Investment Fair Value Disclosure [Abstract] | ||
Fixed maturities, available-for-sale | 12,357 | 8,775 |
Fair Value, Measurements, Recurring | Level 2 | State and Political Sub- divisions | ||
Investment Fair Value Disclosure [Abstract] | ||
Fixed maturities, available-for-sale | 480 | 459 |
Fair Value, Measurements, Recurring | Level 2 | Foreign Govts | ||
Investment Fair Value Disclosure [Abstract] | ||
Fixed maturities, available-for-sale | 394 | 414 |
Fair Value, Measurements, Recurring | Level 2 | Commercial Mortgage- backed | ||
Investment Fair Value Disclosure [Abstract] | ||
Fixed maturities, available-for-sale | 22 | 30 |
Fair Value, Measurements, Recurring | Level 2 | Residential Mortgage- backed | ||
Investment Fair Value Disclosure [Abstract] | ||
Fixed maturities, available-for-sale | 552 | 640 |
Fair Value, Measurements, Recurring | Level 2 | Asset- backed | ||
Investment Fair Value Disclosure [Abstract] | ||
Fixed maturities, available-for-sale | 36 | 37 |
Fair Value, Measurements, Recurring | Level 2 | Redeemable Preferred Stock | ||
Investment Fair Value Disclosure [Abstract] | ||
Fixed maturities, available-for-sale | 363 | 389 |
Fair Value, Measurements, Recurring | Level 2 | Short-term investments | ||
Investment Fair Value Disclosure [Abstract] | ||
Other invested assets | 297 | 369 |
Fair Value, Measurements, Recurring | Level 2 | Swaps | ||
Investment Fair Value Disclosure [Abstract] | ||
Other invested assets | 77 | 230 |
Fair Value, Measurements, Recurring | Level 2 | Credit Default Swaps | ||
Investment Fair Value Disclosure [Abstract] | ||
Other invested assets | 0 | (22) |
Fair Value, Measurements, Recurring | Level 2 | Futures | ||
Investment Fair Value Disclosure [Abstract] | ||
Other invested assets | 0 | |
Fair Value, Measurements, Recurring | Level 2 | Options | ||
Investment Fair Value Disclosure [Abstract] | ||
Other invested assets | 742 | 390 |
Fair Value, Measurements, Recurring | Level 2 | Floors | ||
Investment Fair Value Disclosure [Abstract] | ||
Other invested assets | 23 | 61 |
Fair Value, Measurements, Recurring | Level 2 | Currency Contracts | ||
Investment Fair Value Disclosure [Abstract] | ||
Other invested assets | (11) | 1 |
Fair Value, Measurements, Recurring | Level 2 | GWBL and Other Features’ liability | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Guarantees, Fair Value Disclosure | 0 | |
Fair Value, Measurements, Recurring | Level 2 | SCS, SIO, MSO and IUL indexed features’ liability | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Guarantees, Fair Value Disclosure | 649 | 310 |
Fair Value, Measurements, Recurring | Level 3 | ||
Investment Fair Value Disclosure [Abstract] | ||
Fixed maturities, available-for-sale | 1,182 | 1,009 |
Other equity investments | 6 | 49 |
Trading securities | 0 | |
GMIB reinsurance contract asset | 13,113 | 10,570 |
Separate Accounts’ assets | 315 | 313 |
Total Assets | 14,619 | 11,941 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Contingent payment arrangements | 18 | 31 |
Total Liabilities | 319 | 215 |
Fair Value, Measurements, Recurring | Level 3 | Corporate | ||
Investment Fair Value Disclosure [Abstract] | ||
Fixed maturities, available-for-sale | 56 | 31 |
Fair Value, Measurements, Recurring | Level 3 | Private corporate | ||
Investment Fair Value Disclosure [Abstract] | ||
Fixed maturities, available-for-sale | 683 | 389 |
Fair Value, Measurements, Recurring | Level 3 | U.S. Treasury, government and agency | ||
Investment Fair Value Disclosure [Abstract] | ||
Fixed maturities, available-for-sale | 0 | |
Fair Value, Measurements, Recurring | Level 3 | State and Political Sub- divisions | ||
Investment Fair Value Disclosure [Abstract] | ||
Fixed maturities, available-for-sale | 44 | 45 |
Fair Value, Measurements, Recurring | Level 3 | Foreign Govts | ||
Investment Fair Value Disclosure [Abstract] | ||
Fixed maturities, available-for-sale | 0 | 1 |
Fair Value, Measurements, Recurring | Level 3 | Commercial Mortgage- backed | ||
Investment Fair Value Disclosure [Abstract] | ||
Fixed maturities, available-for-sale | 374 | 503 |
Fair Value, Measurements, Recurring | Level 3 | Residential Mortgage- backed | ||
Investment Fair Value Disclosure [Abstract] | ||
Fixed maturities, available-for-sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Asset- backed | ||
Investment Fair Value Disclosure [Abstract] | ||
Fixed maturities, available-for-sale | 25 | 40 |
Fair Value, Measurements, Recurring | Level 3 | Redeemable Preferred Stock | ||
Investment Fair Value Disclosure [Abstract] | ||
Fixed maturities, available-for-sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | GWBL and Other Features’ liability | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Guarantees, Fair Value Disclosure | 301 | $ 184 |
Variable Interest Entity, Primary Beneficiary | Fair Value, Measurements, Recurring | ||
Investment Fair Value Disclosure [Abstract] | ||
Consolidated VIE investments | 205 | |
Derivative Asset | 4 | |
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative Liability | 4 | |
Variable Interest Entity, Primary Beneficiary | Fair Value, Measurements, Recurring | Level 1 | ||
Investment Fair Value Disclosure [Abstract] | ||
Consolidated VIE investments | 29 | |
Variable Interest Entity, Primary Beneficiary | Fair Value, Measurements, Recurring | Level 2 | ||
Investment Fair Value Disclosure [Abstract] | ||
Consolidated VIE investments | 173 | |
Derivative Asset | 4 | |
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative Liability | 4 | |
Variable Interest Entity, Primary Beneficiary | Fair Value, Measurements, Recurring | Level 3 | ||
Investment Fair Value Disclosure [Abstract] | ||
Consolidated VIE investments | $ 3 |
FAIR VALUE DISCLOSURES (TEXTUAL
FAIR VALUE DISCLOSURES (TEXTUAL) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Quantitative Disclosure [Line Items] | ||||
Fixed maturities, available-for-sale | $ 36,566 | $ 36,566 | $ 31,925 | |
Fair value freestanding contract | 833 | $ 833 | $ 659 | |
Freestanding contract invested assets (as a percent) | 73.70% | 64.10% | ||
Fair value adjustments on GMIB asset | $ 204 | $ 123 | ||
Transfers out of Level 3 | (24) | (50) | $ (112) | |
Transfers into level 3 | $ 29 | $ 31 | ||
Transfers out of Levels 2 and 3 to Total Equity (as a percent) | 0.50% | 0.80% | ||
Level 1 | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Quantitative Disclosure [Line Items] | ||||
Assets measured at fair value on recurring basis (as a percent) | 69.60% | 71.80% | ||
Level 2 | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Quantitative Disclosure [Line Items] | ||||
Assets measured at fair value on recurring basis (as a percent) | 29.40% | 27.30% | ||
Mortgages and asset-backed securities owned | 579 | $ 579 | $ 673 | |
Level 3 | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Quantitative Disclosure [Line Items] | ||||
Assets measured at fair value on recurring basis (as a percent) | 0.90% | 0.90% | ||
Mortgages and asset-backed securities owned | 399 | $ 399 | $ 543 | |
Fair value disclosures broker priced | 143 | 143 | 119 | |
Public Fixed Maturities | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Quantitative Disclosure [Line Items] | ||||
Fixed maturities, available-for-sale | 28,510 | $ 28,510 | $ 24,216 | |
Available-for-sale fixed maturity assets measured at fair value on recurring basis (as a percent) | 17.90% | 16.20% | ||
Private Fixed Maturities | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Quantitative Disclosure [Line Items] | ||||
Fixed maturities, available-for-sale | $ 7,970 | $ 7,970 | $ 7,677 | |
Available-for-sale fixed maturity assets measured at fair value on recurring basis (as a percent) | 5.00% | 5.10% |
FAIR VALUE DISCLOSURES (LEVEL 3
FAIR VALUE DISCLOSURES (LEVEL 3 UNOBSERVABLE INPUT RECONCILIATION) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Total Gains Losses Realized Unrealized Included In [Abstract] | ||||
Transfers into level 3 | $ 29 | $ 31 | ||
Transfers out of Level 3 | $ (24) | (50) | (112) | |
Corporate | Level 3 | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Opening Balance | 495 | $ 373 | 420 | 380 |
Total Gains Losses Realized Unrealized Included In [Abstract] | ||||
Net investment income (loss) | 0 | (1) | 1 | |
Investment Gains (Losses), Net | 1 | 0 | 1 | 1 |
Subtotal | 1 | 0 | 0 | 2 |
Other comprehensive income (loss) | (2) | (2) | 8 | (3) |
Purchases | 256 | 96 | 399 | 129 |
Sales | (21) | 2 | (89) | (33) |
Transfers into level 3 | 11 | 0 | 29 | 31 |
Transfers out of Level 3 | (1) | (25) | (28) | (62) |
Closing Balance | 739 | 444 | 739 | 444 |
State and Political Sub- divisions | Level 3 | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Opening Balance | 45 | 46 | 45 | 47 |
Total Gains Losses Realized Unrealized Included In [Abstract] | ||||
Subtotal | 0 | 0 | ||
Other comprehensive income (loss) | 0 | 0 | 0 | (1) |
Sales | (1) | (1) | (1) | (1) |
Closing Balance | 44 | 45 | 44 | 45 |
Foreign Govts | Level 3 | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Opening Balance | 0 | 0 | 1 | 0 |
Total Gains Losses Realized Unrealized Included In [Abstract] | ||||
Subtotal | 0 | 0 | ||
Other comprehensive income (loss) | 0 | 0 | ||
Transfers into level 3 | 0 | |||
Transfers out of Level 3 | 0 | 0 | (1) | 0 |
Closing Balance | 0 | 0 | 0 | 0 |
Commercial Mortgage- backed | Level 3 | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Opening Balance | 402 | 627 | 503 | 715 |
Total Gains Losses Realized Unrealized Included In [Abstract] | ||||
Net investment income (loss) | 1 | 1 | 1 | 1 |
Investment Gains (Losses), Net | (12) | (7) | (36) | (27) |
Subtotal | (11) | (6) | (35) | (26) |
Other comprehensive income (loss) | 10 | 12 | (1) | 46 |
Purchases | 0 | 0 | 0 | |
Sales | (21) | (63) | (81) | (145) |
Transfers out of Level 3 | (6) | (30) | (12) | (50) |
Closing Balance | 374 | 540 | 374 | 540 |
Residential Mortgage- backed | Level 3 | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Opening Balance | 0 | 1 | 0 | 2 |
Total Gains Losses Realized Unrealized Included In [Abstract] | ||||
Subtotal | 0 | 0 | ||
Sales | 0 | 0 | (1) | |
Closing Balance | 0 | 1 | 0 | 1 |
Asset- backed | Level 3 | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Opening Balance | 26 | 48 | 40 | 53 |
Total Gains Losses Realized Unrealized Included In [Abstract] | ||||
Subtotal | 0 | 0 | ||
Other comprehensive income (loss) | (1) | (3) | 1 | (3) |
Sales | 0 | 0 | (7) | (5) |
Transfers out of Level 3 | 0 | (9) | 0 | |
Closing Balance | 25 | 45 | 25 | 45 |
Redeemable Preferred Stock | Level 3 | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Opening Balance | 0 | 0 | 0 | 0 |
Total Gains Losses Realized Unrealized Included In [Abstract] | ||||
Subtotal | 0 | 0 | ||
Other comprehensive income (loss) | 0 | |||
Purchases | 0 | 0 | ||
Closing Balance | 0 | 0 | 0 | 0 |
Other Equity Investments | Level 3 | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Opening Balance | 18 | 51 | 17 | 61 |
Total Gains Losses Realized Unrealized Included In [Abstract] | ||||
Net investment income (loss) | 0 | 5 | ||
Investment Gains (Losses), Net | 0 | 0 | (1) | 5 |
Subtotal | 0 | 0 | (1) | 10 |
Other comprehensive income (loss) | 0 | 0 | (2) | |
Purchases | 0 | 0 | 0 | |
Sales | 0 | (18) | ||
Activity related to consolidated VIEs | 15 | 17 | ||
Transfers into level 3 | 0 | 0 | ||
Transfers out of Level 3 | (24) | (24) | 0 | |
Closing Balance | 9 | 51 | 9 | 51 |
GMIB Reinsurance Asset | Level 3 | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Opening Balance | 13,311 | 9,951 | 10,570 | 10,711 |
Total Gains Losses Realized Unrealized Included In [Abstract] | ||||
Increase (Decrease) in the Fair Value of the Reinsurance Contract Asset | (235) | 2,214 | 2,426 | 1,363 |
Policyholders’ benefits | 0 | |||
Subtotal | (235) | 2,214 | 2,426 | 1,363 |
Purchases | 56 | 58 | 167 | 171 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Issuances | 0 | 0 | ||
Sales | (19) | (9) | (50) | (31) |
Closing Balance | 13,113 | 12,214 | 13,113 | 12,214 |
Separate Accounts Assets | Level 3 | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Opening Balance | 307 | 283 | 313 | 260 |
Total Gains Losses Realized Unrealized Included In [Abstract] | ||||
Net investment income (loss) | 0 | 0 | 0 | |
Investment Gains (Losses), Net | 7 | 8 | 19 | 25 |
Subtotal | 7 | 8 | 19 | 25 |
Other comprehensive income (loss) | 0 | 0 | ||
Purchases | 3 | 5 | 12 | 17 |
Sales | 0 | 0 | 0 | (2) |
Settlements | (1) | (1) | (6) | (3) |
Transfers into level 3 | 0 | 1 | 1 | 0 |
Transfers out of Level 3 | (1) | (1) | (24) | (2) |
Closing Balance | 315 | 295 | 315 | 295 |
GWBL and Other Features’ Liability | Level 3 | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Opening Balance | 330 | 109 | 184 | 128 |
Total Gains Losses Realized Unrealized Included In [Abstract] | ||||
Policyholders’ benefits | (88) | 68 | (48) | (37) |
Subtotal | (88) | 68 | (48) | (37) |
Purchases | 59 | 48 | 165 | 134 |
Closing Balance | 301 | 225 | 301 | 225 |
Contingent Payment Arrangement | Level 3 | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Opening Balance | 31 | (42) | 31 | (42) |
Total Gains Losses Realized Unrealized Included In [Abstract] | ||||
Net investment income (loss) | 0 | 0 | 0 | (2) |
Subtotal | 0 | 0 | 0 | (2) |
Purchases | 0 | 11 | 0 | |
Settlements | (24) | 3 | (24) | 5 |
Closing Balance | 18 | (39) | 18 | (39) |
Assets and Liabilities Still Held | Corporate | Level 3 | ||||
Total Gains Losses Realized Unrealized Included In [Abstract] | ||||
Other comprehensive income (loss) | 0 | (2) | 9 | (3) |
Assets and Liabilities Still Held | State and Political Sub- divisions | Level 3 | ||||
Total Gains Losses Realized Unrealized Included In [Abstract] | ||||
Other comprehensive income (loss) | 0 | 0 | 1 | (1) |
Assets and Liabilities Still Held | Commercial Mortgage- backed | Level 3 | ||||
Total Gains Losses Realized Unrealized Included In [Abstract] | ||||
Other comprehensive income (loss) | 10 | 11 | (6) | 44 |
Assets and Liabilities Still Held | Asset- backed | Level 3 | ||||
Total Gains Losses Realized Unrealized Included In [Abstract] | ||||
Other comprehensive income (loss) | (1) | (3) | 1 | (3) |
Assets and Liabilities Still Held | Fixed Maturities, Available-for-Sale [Member] | Level 3 | ||||
Total Gains Losses Realized Unrealized Included In [Abstract] | ||||
Other comprehensive income (loss) | 9 | 6 | 5 | 37 |
Assets and Liabilities Still Held | Total Debt Maturities Available For Sale | Level 3 | ||||
Total Gains Losses Realized Unrealized Included In [Abstract] | ||||
Investment Gains (Losses), Net | 6 | 8 | 19 | 25 |
Increase (Decrease) in the Fair Value of the Reinsurance Contract Asset | (198) | 2,263 | 2,543 | 1,503 |
Policyholders’ benefits | (29) | 116 | 117 | 97 |
Other comprehensive income (loss) | 9 | 6 | 5 | 37 |
Assets and Liabilities Still Held | GMIB Reinsurance Asset | Level 3 | ||||
Total Gains Losses Realized Unrealized Included In [Abstract] | ||||
Increase (Decrease) in the Fair Value of the Reinsurance Contract Asset | (198) | 2,263 | 2,543 | 1,503 |
Assets and Liabilities Still Held | Separate Accounts Assets | Level 3 | ||||
Total Gains Losses Realized Unrealized Included In [Abstract] | ||||
Investment Gains (Losses), Net | 6 | 8 | 19 | 25 |
Assets and Liabilities Still Held | GWBL and Other Features’ Liability | Level 3 | ||||
Total Gains Losses Realized Unrealized Included In [Abstract] | ||||
Policyholders’ benefits | $ (29) | $ 116 | $ 117 | $ 97 |
FAIR VALUE DISCLOSURES (UNREALI
FAIR VALUE DISCLOSURES (UNREALIZED GAINS (LOSSES) FOR LEVEL 3 STILL HELD) (Details) - Level 3 - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Corporate | ||||
Change in Accounting Estimate [Line Items] | ||||
Investment Gains (Losses), Net | $ 1 | $ 0 | $ 1 | $ 1 |
OCI | (2) | (2) | 8 | (3) |
State and Political Sub- divisions | ||||
Change in Accounting Estimate [Line Items] | ||||
OCI | 0 | 0 | 0 | (1) |
Commercial Mortgage- backed | ||||
Change in Accounting Estimate [Line Items] | ||||
Investment Gains (Losses), Net | (12) | (7) | (36) | (27) |
OCI | 10 | 12 | (1) | 46 |
Asset-backed Securities | ||||
Change in Accounting Estimate [Line Items] | ||||
OCI | (1) | (3) | 1 | (3) |
Gmib Reinsurance | ||||
Change in Accounting Estimate [Line Items] | ||||
Increase (Decrease) in the Fair Value of the Reinsurance Contract Asset | (235) | 2,214 | 2,426 | 1,363 |
Policy- holders’ Benefits | 0 | |||
Equity Method Investments | ||||
Change in Accounting Estimate [Line Items] | ||||
Investment Gains (Losses), Net | 0 | 0 | (1) | 5 |
OCI | 0 | 0 | (2) | |
Separate Accounts Assets | ||||
Change in Accounting Estimate [Line Items] | ||||
Investment Gains (Losses), Net | 7 | 8 | 19 | 25 |
OCI | 0 | 0 | ||
GWBL and Other Features’ Liability | ||||
Change in Accounting Estimate [Line Items] | ||||
Policy- holders’ Benefits | (88) | 68 | (48) | (37) |
Assets and Liabilities Still Held | Corporate | ||||
Change in Accounting Estimate [Line Items] | ||||
OCI | 0 | (2) | 9 | (3) |
Assets and Liabilities Still Held | State and Political Sub- divisions | ||||
Change in Accounting Estimate [Line Items] | ||||
OCI | 0 | 0 | 1 | (1) |
Assets and Liabilities Still Held | Commercial Mortgage- backed | ||||
Change in Accounting Estimate [Line Items] | ||||
OCI | 10 | 11 | (6) | 44 |
Assets and Liabilities Still Held | Asset-backed Securities | ||||
Change in Accounting Estimate [Line Items] | ||||
OCI | (1) | (3) | 1 | (3) |
Assets and Liabilities Still Held | Fixed Maturities, Available-for-Sale [Member] | ||||
Change in Accounting Estimate [Line Items] | ||||
OCI | 9 | 6 | 5 | 37 |
Assets and Liabilities Still Held | Total Debt Maturities Available For Sale | ||||
Change in Accounting Estimate [Line Items] | ||||
Investment Gains (Losses), Net | 6 | 8 | 19 | 25 |
Increase (Decrease) in the Fair Value of the Reinsurance Contract Asset | (198) | 2,263 | 2,543 | 1,503 |
OCI | 9 | 6 | 5 | 37 |
Policy- holders’ Benefits | (29) | 116 | 117 | 97 |
Assets and Liabilities Still Held | Gmib Reinsurance | ||||
Change in Accounting Estimate [Line Items] | ||||
Increase (Decrease) in the Fair Value of the Reinsurance Contract Asset | (198) | 2,263 | 2,543 | 1,503 |
Assets and Liabilities Still Held | Separate Accounts Assets | ||||
Change in Accounting Estimate [Line Items] | ||||
Investment Gains (Losses), Net | 6 | 8 | 19 | 25 |
Assets and Liabilities Still Held | GWBL and Other Features’ Liability | ||||
Change in Accounting Estimate [Line Items] | ||||
Policy- holders’ Benefits | $ (29) | $ 116 | $ 117 | $ 97 |
FAIR VALUE DISCLOSURES (QUANTIT
FAIR VALUE DISCLOSURES (QUANTITATIVE INFORMATION ABOUT LEVEL 3) (Details) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2016USD ($) | Sep. 30, 2016USD ($)fund | Dec. 31, 2015USD ($) | Jun. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Dec. 31, 2014USD ($) | |
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||||||
Fair value measurements not included In quantitative information about level 3 | $ 678 | $ 678 | $ 865 | ||||
Level 3 fair value measurements not included in quantitative information classified as level 3 (as a percent) | 45.00% | 45.00% | 63.10% | ||||
Level 3 fair value measurements not included in quantitative information as a percentage of total assets measured at fair value on a recurring basis (as a percent) | 0.40% | 0.40% | 0.60% | ||||
Changes in estimates | $ 21 | ||||||
Corporate | Matrix Pricing Model | Private Available For Sale Corporate Securities | |||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||||||
Fair value, measurement with unobservable inputs reconciliation, recurring basis | 528 | $ 528 | $ 215 | ||||
Percentage of level 3 asset fair value (as a percent) | 71.40% | 51.20% | |||||
Asset-backed Securities | Matrix Pricing Model | |||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||||||
Percentage of level 3 asset fair value (as a percent) | 8.00% | 7.50% | |||||
Separate Accounts | Mortgage Backed Securities | |||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||||||
Fair value, measurement with unobservable inputs reconciliation, recurring basis | 15 | $ 15 | $ 28 | ||||
Separate Accounts | Asset-backed Securities | |||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||||||
Fair value, measurement with unobservable inputs reconciliation, recurring basis | 2 | 2 | 7 | ||||
Separate Accounts | Third Party Appraisal | Mortgage Loans on Real Estate | |||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||||||
Fair value, measurement with unobservable inputs reconciliation, recurring basis | 5 | 5 | 5 | ||||
Separate Accounts | Third Party Appraisal | Private Real Estate Fund | |||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||||||
Fair value, measurement with unobservable inputs reconciliation, recurring basis | 292 | 292 | 271 | ||||
Separate Accounts | Third Party Appraisal | Private Equity Funds | |||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||||||
Fair value, measurement with unobservable inputs reconciliation, recurring basis | 1 | 1 | 2 | ||||
Contingent Payment Arrangement | |||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||||||
Fair value, measurement with unobservable inputs reconciliation, recurring basis | 18 | $ 18 | $ 31 | ||||
Fair value inputs, discount rate (as a percent) | 3.00% | ||||||
Fair value inputs, assets under management growth rate (as a percent) | 18.00% | 46.00% | |||||
Fair value inputs, long-term revenue growth rate (as a percent) | 43.00% | ||||||
Minimum | Contingent Payment Arrangement | |||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||||||
Fair value inputs, discount rate (as a percent) | 1.40% | ||||||
Fair value inputs, long-term revenue growth rate (as a percent) | 4.00% | ||||||
Maximum | Contingent Payment Arrangement | |||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||||||
Fair value inputs, discount rate (as a percent) | 6.40% | ||||||
Fair value inputs, long-term revenue growth rate (as a percent) | 31.00% | ||||||
Level 3 | Gmib Reinsurance | Discounted Cash Flow | |||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||||||
Fair value, measurement with unobservable inputs reconciliation, recurring basis | 13,113 | $ 13,113 | $ 10,570 | ||||
Level 3 | Corporate | Matrix Pricing Model | |||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||||||
Fair value, measurement with unobservable inputs reconciliation, recurring basis | 53 | 53 | 61 | ||||
Level 3 | Corporate | Market Comparable Companies | |||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||||||
Fair value, measurement with unobservable inputs reconciliation, recurring basis | 475 | 475 | 154 | ||||
Level 3 | Asset-backed Securities | Matrix Pricing Model | |||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||||||
Fair value, measurement with unobservable inputs reconciliation, recurring basis | 2 | 2 | 3 | ||||
Level 3 | Other Equity Investments | Market Comparable Companies | |||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||||||
Fair value, measurement with unobservable inputs reconciliation, recurring basis | 10 | ||||||
Level 3 | Separate Accounts | Third Party Appraisal | |||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||||||
Fair value, measurement with unobservable inputs reconciliation, recurring basis | 292 | 292 | 271 | ||||
Level 3 | Separate Accounts | Discounted Cash Flow | |||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||||||
Fair value, measurement with unobservable inputs reconciliation, recurring basis | 6 | 6 | 7 | ||||
Level 3 | GMWB and GWBL | Discounted Cash Flow | |||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||||||
Fair value, measurement with unobservable inputs reconciliation, recurring basis | 301 | $ 301 | $ 184 | ||||
Other Invested Assets | Market Comparable Companies | |||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||||||
Fair value inputs, discount rate (as a percent) | 0.00% | 30.00% | |||||
Other Invested Assets | Minimum | Market Comparable Companies | |||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||||||
Fair value inputs, revenue multiple | 0 | 2.5 | |||||
Other Invested Assets | Maximum | Market Comparable Companies | |||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||||||
Fair value inputs, revenue multiple | 0 | 4.8 | |||||
GMWB and GWBL | Minimum | Discounted Cash Flow | |||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||||||
Fair value inputs, lapse rates (as a percent) | 1.00% | 1.00% | |||||
Fair value inputs, withdrawal rates (as a percent) | 0.00% | 0.00% | |||||
Fair value input, expected volatility rate (as a percent) | 9.00% | 9.00% | |||||
GMWB and GWBL | Maximum | Discounted Cash Flow | |||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||||||
Fair value inputs, lapse rates (as a percent) | 11.00% | 11.00% | |||||
Fair value inputs, withdrawal rates (as a percent) | 8.00% | 8.00% | |||||
Fair value input, expected volatility rate (as a percent) | 35.00% | 35.00% | |||||
Gmib Reinsurance | Minimum | Discounted Cash Flow | |||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||||||
Fair value inputs, lapse rates (as a percent) | 1.50% | 0.60% | |||||
Fair value inputs, withdrawal rates (as a percent) | 0.00% | 0.20% | |||||
Fair value inputs, GIMB utilization rates (as a percent) | 0.00% | 0.00% | |||||
Fair value inputs, non-performance risk (bps) | 5 | 5 | |||||
Fair value input, expected volatility rate (as a percent) | 9.00% | 9.00% | |||||
Gmib Reinsurance | Maximum | Discounted Cash Flow | |||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||||||
Fair value inputs, lapse rates (as a percent) | 5.70% | 5.70% | |||||
Fair value inputs, withdrawal rates (as a percent) | 8.00% | 8.00% | |||||
Fair value inputs, GIMB utilization rates (as a percent) | 16.00% | 15.00% | |||||
Fair value inputs, non-performance risk (bps) | 19 | 18 | |||||
Fair value input, expected volatility rate (as a percent) | 35.00% | 35.00% | |||||
Gmib Reinsurance | Level 3 | |||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||||||
Fair value, measurement with unobservable inputs reconciliation, recurring basis | 13,113 | $ 13,113 | $ 10,570 | $ 13,311 | $ 12,214 | $ 9,951 | $ 10,711 |
Separate Accounts | Third Party Appraisal | |||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||||||
Fair value inputs, discount rate (as a percent) | 6.60% | 6.70% | |||||
Fair value inputs, capitalization rate (as a percent) | 4.80% | 4.90% | |||||
Fair value inputs, exit capitalization rate (as a percent) | 5.80% | 5.90% | |||||
Separate Accounts | Minimum | Discounted Cash Flow | |||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||||||
Fair value inputs, spread over industry yield curve (bps) | 269 | 280 | |||||
Fair value inputs, discount rate (as a percent) | 1.40% | 2.30% | |||||
Fair value inputs, inflation rate (as a percent) | 0.00% | 0.00% | |||||
Separate Accounts | Maximum | Discounted Cash Flow | |||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||||||
Fair value inputs, spread over industry yield curve (bps) | 448 | 411 | |||||
Fair value inputs, discount rate (as a percent) | 5.60% | 5.90% | |||||
Fair value inputs, inflation rate (as a percent) | 0.00% | 1.09% | |||||
Separate Accounts | Level 3 | |||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||||||
Fair value, measurement with unobservable inputs reconciliation, recurring basis | 315 | $ 315 | $ 313 | 307 | 295 | 283 | 260 |
Asset-backed Securities | Minimum | Matrix Pricing Model | |||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||||||
Fair value inputs, spread over industry yield curve (bps) | 25 | 30 | |||||
Asset-backed Securities | Maximum | Matrix Pricing Model | |||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||||||
Fair value inputs, spread over industry yield curve (bps) | 687 | 687 | |||||
Asset-backed Securities | Level 3 | |||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||||||
Fair value, measurement with unobservable inputs reconciliation, recurring basis | 25 | $ 25 | $ 40 | 26 | 45 | 48 | 53 |
Corporate | Minimum | Matrix Pricing Model | |||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||||||
Fair value inputs, spread over industry yield curve (bps) | 75 | 50 | |||||
Corporate | Minimum | Market Comparable Companies | |||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||||||
Fair value inputs, earnings before interest, taxes, depreciation and amortization multiple | 4.9 | 7.8 | |||||
Fair value inputs, discount rate (as a percent) | 7.00% | 7.00% | |||||
Fair value inputs, cash flow multiple | 14 | 14 | |||||
Corporate | Maximum | Matrix Pricing Model | |||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||||||
Fair value inputs, spread over industry yield curve (bps) | 565 | 565 | |||||
Corporate | Maximum | Market Comparable Companies | |||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||||||
Fair value inputs, earnings before interest, taxes, depreciation and amortization multiple | 22.2 | 19.1 | |||||
Fair value inputs, discount rate (as a percent) | 16.50% | 12.60% | |||||
Fair value inputs, cash flow multiple | 16.5 | 16.5 | |||||
Corporate | Level 3 | |||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||||||
Fair value, measurement with unobservable inputs reconciliation, recurring basis | 739 | $ 739 | $ 420 | $ 495 | $ 444 | $ 373 | $ 380 |
Variable Interest Entity, Not Primary Beneficiary | Level 3 | Corporate Bonds | Vendor Priced With No Ratings | Open-end Luxembourg Fund | |||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||||||
Fair value, measurement with unobservable inputs reconciliation, recurring basis | $ 3 | $ 3 | |||||
Investment Management | Variable Interest Entity, Not Primary Beneficiary | |||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||||||
Number of Investment Funds | fund | 3 |
FAIR VALUE DISCLOSURES (CARRYIN
FAIR VALUE DISCLOSURES (CARRYING VALUES AND FAIR VALUES OF FINANCIAL INSTRUMENTS) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Consolidated Amounts [Abstract] | ||
Mortgage loans on real estate | $ 8,769 | $ 7,171 |
Policy loans | 3,371 | 3,393 |
Loans to affiliates | 704 | 1,087 |
Policyholders' account balances, Investment contracts | 36,920 | 33,033 |
Short-term debt | 387 | 584 |
Separate Accounts’ liabilities | 110,756 | 107,497 |
Estimate of Fair Value | ||
Consolidated Amounts [Abstract] | ||
Mortgage loans on real estate | 8,994 | 7,257 |
Policy loans | 4,468 | 4,343 |
Loans to affiliates | 795 | 1,185 |
Policyholders' account balances, Investment contracts | 3,912 | 2,806 |
Short-term debt | 387 | 584 |
Separate Accounts’ liabilities | 5,980 | 5,124 |
Estimate of Fair Value | Level 2 | ||
Consolidated Amounts [Abstract] | ||
Loans to affiliates | 795 | 795 |
Short-term debt | 387 | 584 |
Estimate of Fair Value | Level 3 | ||
Consolidated Amounts [Abstract] | ||
Mortgage loans on real estate | 8,994 | 7,257 |
Policy loans | 4,468 | 4,343 |
Loans to affiliates | 0 | 390 |
Policyholders' account balances, Investment contracts | 3,912 | 2,806 |
Short-term debt | 0 | 0 |
Separate Accounts’ liabilities | 5,980 | 5,124 |
Carrying Value | ||
Consolidated Amounts [Abstract] | ||
Mortgage loans on real estate | 8,769 | 7,171 |
Policy loans | 3,371 | 3,393 |
Loans to affiliates | 704 | 1,087 |
Policyholders' account balances, Investment contracts | 3,717 | 2,701 |
Short-term debt | 387 | 584 |
Separate Accounts’ liabilities | $ 5,980 | $ 5,124 |
EMPLOYEE BENEFIT PLANS (Details
EMPLOYEE BENEFIT PLANS (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
401(k) contribution expense recognized | $ 3 | $ 2 | $ 10 | $ 18 |
Alliance Bernstein | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined contribution plan, employer discretionary contribution amount | 0 | |||
Defined contribution plan, minimum employer discretionary contribution | 0 | |||
Qualified Retirement Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 0 | 2 | 0 | 6 |
Interest cost | 2 | 23 | 4 | 69 |
Expected return on assets | (1) | (39) | (4) | (117) |
Net amortization | 0 | 29 | 0 | 89 |
Actuarial (gain) loss | 0 | 1 | 0 | 1 |
Net Periodic Pension Expense | $ 1 | $ 16 | $ 0 | $ 48 |
SHARE-BASED COMPENSATION PROG68
SHARE-BASED COMPENSATION PROGRAMS (Details) | Jun. 06, 2016USD ($)Rateshares | Jun. 06, 2016€ / shares | Mar. 22, 2016USD ($)shares | Mar. 16, 2016USD ($)shares | Sep. 30, 2016USD ($)shares | Sep. 30, 2015USD ($)shares | Sep. 30, 2016USD ($)shares | Sep. 30, 2016€ / shares | Sep. 30, 2015USD ($)shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Share based compensation expense | $ 4,617,000 | $ 6,153,000 | $ 21,440,000 | $ 24,637,000 | |||||
Purchased Holding Units to help fund anticipated obligations under its incentive compensation award program Value | $ 129,000,000 | $ 100,000,000 | |||||||
Alliance Bernstein | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Purchased Holding Units to help fund anticipated obligations under its incentive compensation award program shares (in shares) | shares | 2,000,000 | 3,000,000 | 5,800,000 | 3,800,000 | |||||
Open market purchase (in shares) | shares | 2,000,000 | 3,000,000 | 5,700,000 | 3,700,000 | |||||
Open market purchase value | $ 45,000,000 | $ 82,000,000 | $ 127,000,000 | $ 101,000,000 | |||||
Restricted holding unit awards granted to employees (in shares) | shares | 100,000 | 500,000 | |||||||
Purchased Holding Units to help fund anticipated obligations under its incentive compensation award program Value | 45,000,000 | 82,000,000 | $ 129,000,000 | $ 103,000,000 | |||||
Proceeds from Stock Options Exercised | 2,000,000 | 9,000,000 | |||||||
Performance Units/Shares | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Share based compensation expense | 2,953,000 | 3,200,000 | 14,774,000 | 14,226,000 | |||||
Employee Stock Option | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Share based compensation expense | 110,000 | 117,000 | 825,000 | 623,000 | |||||
Employee Stock Option | Alliance Bernstein | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Share based compensation expense | 200,000 | 2,900,000 | 200,000 | 9,300,000 | |||||
Restricted Stock | Alliance Bernstein | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Share based compensation expense | 1,200,000 | 0 | 6,400,000 | 0 | |||||
Other compensation plan | Parent Company | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Share based compensation expense | 154,000 | $ (64,000) | (759,000) | $ 488,000 | |||||
Performance Unit Plan 2016 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Share-based Compensation, Performance Shares Award Outstanding Activity [Table Text Block] | shares | 1,930,000 | ||||||||
Share based compensation expense | 1 | 9,000,000 | |||||||
Performance Unit Plan Year 2013 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Share based compensation arrangement by share based payment award equity instruments other than options equity settlement of vested units with ordinary shares value | $ 55,000,000 | ||||||||
Performance shares earned (in shares) | shares | 2,293,998 | ||||||||
Stock Option Plan 2016 | Parent Company | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Share based compensation expense | $ 31,000 | $ 558,000 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | shares | 576,169 | ||||||||
Deferred Compensation Arrangement with Individual, Exercise Price | € / shares | € 21.52 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years | ||||||||
Conditional Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period | shares | 316,097 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Remaining Contractual Term | 10 years | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | € / shares | € 1.85 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | Rate | 6.49% | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | Rate | 0.33% | ||||||||
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures | $ 1 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | Rate | 26.60% | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 8 years 1 month 6 days | ||||||||
AXA Shareplan Option A 2016 | Parent Company | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Discount percentage on AXA ordinary shares | 20.00% | ||||||||
Discounted price of AXA shares (in dollars per share) | € / shares | € 15.53 | ||||||||
AXA Shareplan Option B 2016 | Parent Company | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Discount percentage on AXA ordinary shares | 8.63% | ||||||||
Discounted price of AXA shares (in dollars per share) | € / shares | € 17.73 | ||||||||
Ordinary share price measurement period (52 weeks) | 364 days | ||||||||
AXA Miles Program 2012 [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Share based compensation arrangement by share based payment award equity instruments other than options equity settlement of vested units with ordinary shares value | $ 4,000,000 | ||||||||
Performance shares earned (in shares) | shares | 164,150 | ||||||||
Employees and eligible Directors [Member] | Alliance Bernstein | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Restricted holding unit awards granted to employees (in shares) | shares | 700,000 | 300,000 | |||||||
Minimum | Performance Unit Plan 2016 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 0.00% | ||||||||
Maximum | Performance Unit Plan 2016 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 130.00% |
INCOME TAXES Tax Settlement (De
INCOME TAXES Tax Settlement (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Tax Settlement [Abstract] | |
Effective Income Tax Rate Reconciliation, Tax Settlement, Amount | $ 77 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||
Jan. 31, 2016 | Nov. 30, 2014 | Jun. 30, 2009 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Guaranteed minimum income benefit reinsurance contract asset, at fair value | $ 13,113 | $ 13,113 | $ 10,570 | |||||
Due from affiliates | $ 704 | 704 | 1,087 | |||||
AXA Financial | ||||||||
Gain on sale of assets | $ 20 | |||||||
AXA Financial | Mortgage Note 2009 | ||||||||
Mortgage loans on real estate, carrying amount of mortgages | $ 1,100 | |||||||
AXA Financial | Mortgage Note 2014 | ||||||||
Due from affiliates | $ 382 | |||||||
Related party transaction mortgage note payable, interest rate (as a percent) | 4.00% | |||||||
Debt instrument, term (in years) | 7 years | |||||||
Repayment of loans from affiliates | $ 382 | |||||||
Repayments of related party debt, prepayment penalty | $ 65 | |||||||
AXA Equitable | ||||||||
Equity method investment, ownership percentage | 70.00% | 70.00% | ||||||
Investment in affiliate | $ 25 | $ 25 | ||||||
AXA Equitable | Mortgage Note 2009 | ||||||||
Due from affiliates | 400 | |||||||
Proceeds from sale of real estate held-for-investment | $ 700 | |||||||
Related party transaction mortgage note payable, interest rate (as a percent) | 8.00% | |||||||
Debt instrument, term (in years) | 10 years | |||||||
AXA Arizona | ||||||||
Guaranteed minimum income benefit reinsurance contract asset, at fair value | 10,899 | 10,899 | $ 8,741 | |||||
Ceded premiums earned affiliated | 113 | $ 114 | 329 | $ 337 | ||||
Reinsurance effect on claims and benefits incurred amount ceded to affiliates | $ 62 | $ 39 | 336 | $ 129 | ||||
AXA Foundation | ||||||||
Donations to affiliates | $ 21 | |||||||
Saum Sing | ||||||||
Equity method investment, ownership percentage | 30.00% | 30.00% |
ACCUMULATED OTHER COMPREHENSI71
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (CUMMULATIVE GAINS (LOSSES)) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Unrealized gains (losses) on investments | $ 1,624 | $ 645 | |
Foreign currency translation adjustments | (55) | (53) | |
Defined benefit pension plans | (12) | (722) | |
Total accumulated other comprehensive income (loss) | 1,557 | (130) | |
Less: Accumulated other comprehensive (income) loss attributable to noncontrolling interest | 56 | 52 | |
Accumulated Other Comprehensive Income (Loss) Attributable to AXA Equitable | $ 1,613 | $ 228 | $ (78) |
ACCUMULATED OTHER COMPREHENSI72
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (COMPONENTS OF OCI, NET OF TAXES) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Foreign currency translation adjustments: | ||||
Foreign currency translation gains (losses) arising during the period | $ (1) | $ (10) | $ 3 | $ (17) |
(Gains) losses reclassified into net earnings (loss) during the period | 0 | (1) | 0 | (2) |
Foreign currency translation adjustment | (1) | (11) | 3 | (19) |
Net unrealized gains (losses) arising during the period | ||||
Net unrealized gains (losses) arising during the period | (10) | 130 | 1,568 | (622) |
(Gains) losses reclassified into net earnings (loss) during the period(1) | 1 | 2 | (14) | 12 |
Net unrealized gains (losses) on investments | (9) | 132 | 1,554 | (610) |
Adjustments for policyholders’ liabilities, DAC, insurance liability loss recognition and other | (13) | 71 | (171) | 132 |
Change in unrealized gains (losses), net of adjustments (net of deferred income tax expense (benefit) of $(13), $107, and $751 and $(261) | (22) | 203 | 1,383 | (478) |
Less: reclassification adjustments to net earnings (loss) for (2): | ||||
Other Comprehensive (Income) Loss, Amortization Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, for Net Prior Service Cost (Credit), Net of Tax | 0 | 19 | 0 | 58 |
Change in defined benefit plans (net of deferred income tax expense (benefit) of $0, $10, $0, and $31. | 0 | 19 | 0 | 58 |
Total other comprehensive income (loss), net of income taxes | (23) | 211 | 1,386 | (439) |
Less: Other comprehensive (income) loss attributable to noncontrolling interest | (1) | 5 | (1) | 10 |
Other Comprehensive Income (Loss) Attributable to AXA Equitable | (24) | 216 | 1,385 | (429) |
Other Comprehensive Income (Loss), Tax, Parenthetical Disclosures [Abstract] | ||||
Other Comprehensive Income (Loss), Available-for-sale Securities, Tax | (13) | 107 | 751 | (261) |
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI, Available for sale securities, Tax | 13 | 1 | 7 | (2) |
Reclassification amounts net of income tax expense (benefit) | 0 | 0 | 6 | 17 |
Other Comprehensive (Income) Loss, Benefit Plans, Tax | $ 0 | $ 10 | $ 0 | $ 31 |
COMMITMENT AND CONTINGENT LIA73
COMMITMENT AND CONTINGENT LIABILITIES (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2016 | Dec. 31, 2015 | |
AXA Equitable | ||
Restructuring and Related Cost [Abstract] | ||
Letters of credit outstanding | $ 18 | |
Equity financing arrangements with Limited Partnerships | 608 | |
Equity financing arrangements with affiliates | 233 | |
Mortgage loans on real estate | 1,212 | |
AXA Equitable | Federal Home Loan Bank of New York | ||
Restructuring and Related Cost [Abstract] | ||
Federal Home Loan Bank advances, maximum borrowing capacity | 4,000 | |
Federal Home Loan Bank advances, outstanding balance | 1,495 | $ 500 |
Facility Closing | Other Operating Costs and Expenses | Alliance Bernstein | AB Consolidation Plan | ||
Restructuring and Related Cost [Abstract] | ||
Restructuring Charges | $ 25 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||||
Segment revenues | $ (2,216) | $ (5,714) | $ (11,547) | $ (9,501) | |
Segment earnings (loss) from continuing operations, before income taxes | (30) | 3,339 | 4,000 | 2,716 | |
Segment assets | 209,034 | 209,034 | $ 194,626 | ||
Consolidation/Elimination | |||||
Segment Reporting Information [Line Items] | |||||
Segment revenues | (7) | (7) | (19) | (21) | |
Segment earnings (loss) from continuing operations, before income taxes | (1) | 1 | 0 | 0 | |
Segment assets | (2) | (2) | (7) | ||
Insurance | |||||
Segment Reporting Information [Line Items] | |||||
Segment revenues | (1,473) | (4,983) | (9,323) | (7,231) | |
Segment earnings (loss) from continuing operations, before income taxes | (212) | 3,200 | 3,510 | 2,271 | |
Segment assets | 196,468 | 196,468 | 182,738 | ||
Insurance | Intersegment Eliminations | |||||
Segment Reporting Information [Line Items] | |||||
Segment interest expense, debt | 14 | 12 | 39 | 34 | |
Investment Management | |||||
Segment Reporting Information [Line Items] | |||||
Segment revenues | (750) | (738) | (2,243) | (2,291) | |
Segment earnings (loss) from continuing operations, before income taxes | 183 | 138 | 490 | 445 | |
Segment assets | 12,568 | 12,568 | 11,895 | ||
Fair value of marketable securities | 444 | 444 | 460 | ||
Cash segregated in special bank accounts | 48 | 48 | $ 55 | ||
Investment Management | Intersegment Eliminations | |||||
Segment Reporting Information [Line Items] | |||||
Segment investment advisory fees | $ (21) | $ (19) | $ (58) | $ (55) |