DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION - shares | 6 Months Ended | |
Jun. 30, 2018 | Aug. 14, 2018 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2,018 | |
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 | Jun. 30, 2018 | Dec. 31, 2017 | |
ASSETS | |||
Fixed maturities available for sale, at fair value (amortized cost of $40,638 and $34,831) | $ 40,394 | $ 36,358 | |
Mortgage loans on real estate (net of valuation allowance of $7 and $8) | 11,791 | 10,935 | |
Real estate held for production of income | 53 | 390 | |
Policy loans | 3,266 | 3,315 | |
Other equity investments | 1,328 | 1,351 | |
Trading securities, at fair value | 13,900 | 12,628 | |
Other invested assets | 1,753 | 3,121 | |
Total investments | 72,485 | 68,098 | |
Cash and cash equivalents | 4,974 | 3,409 | |
Cash and securities segregated, at fair value | 1,289 | 825 | |
Broker-dealer related receivables | 2,276 | 2,158 | |
Deferred policy acquisition costs | 4,786 | 4,547 | |
Goodwill and other intangible assets, net | 3,694 | 3,709 | |
Amounts due from reinsurers | 3,088 | 5,079 | |
Loans to affiliates | 800 | 703 | |
GMIB reinsurance contract asset, at fair value | 1,825 | 10,488 | |
Current and deferred income tax assets | 159 | 0 | |
Other Assets | 2,999 | 4,432 | |
Separate Accounts assets | 120,931 | 122,537 | |
Total Assets | 219,306 | 225,985 | |
LIABILITIES | |||
Policyholders’ account balances | 45,378 | 43,805 | |
Future policy benefits and other policyholders’ liabilities | 28,122 | 29,034 | |
Broker-dealer related payables | 603 | 764 | |
Securities sold under agreements to repurchase | 1,850 | 1,887 | |
Customers related payables | 2,713 | 2,229 | |
Amounts due to reinsurers | 76 | 134 | |
Short-term and Long-term debt | 515 | 769 | |
Current and deferred income taxes | 0 | 1,973 | |
Other liabilities | 2,008 | 2,663 | |
Separate Accounts liabilities | 120,931 | 122,537 | |
Total liabilities | 202,196 | 205,795 | |
Redeemable noncontrolling interest | [1] | 146 | 626 |
Commitments and contingent liabilities | |||
AXA Equitable’s equity: | |||
Common stock, $1.25 par value; 2 million shares authorized, issued and outstanding | 2 | 2 | |
Capital in excess of par value | 7,770 | 6,859 | |
Retained earnings | 6,617 | 9,010 | |
Accumulated other comprehensive income (loss) | (464) | 598 | |
Total AXA Equitable’s equity | 13,925 | 16,469 | |
Noncontrolling interest | 3,039 | 3,095 | |
Total equity | 16,964 | 19,564 | |
Total Liabilities, Redeemable Noncontrolling Interest and Equity | $ 219,306 | $ 225,985 | |
[1] | See Note 2 for details of balances with variable interest entities. |
CONSOLIDATED BALANCE SHEET (UN3
CONSOLIDATED BALANCE SHEET (UNAUDITED) (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Fixed maturities available for sale, amortized cost | $ 40,638 | |
Mortgage loans on real estate, valuation allowances | $ 7 | $ 8 |
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 | $ 40,638 | $ 34,831 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (LOSS) (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
REVENUES | ||||
Policy charges and fee income | $ 904 | $ 846 | $ 1,773 | $ 1,698 |
Premiums | 217 | 225 | 440 | 457 |
Net derivative gains (losses) | (312) | 1,763 | (1,172) | 1,362 |
Net investment income (loss) | 548 | 686 | 1,096 | 1,316 |
Investment gains (losses), net: | ||||
Total other-than-temporary impairment losses | 0 | (13) | 0 | (13) |
Other investment gains (losses), net | (5) | 23 | 82 | 12 |
Total investment gains (losses), net | (5) | 10 | 82 | (1) |
Investment management and service fees | 1,077 | 999 | 2,134 | 1,955 |
Other income | 10 | 19 | 34 | 36 |
Total revenues | 2,439 | 4,548 | 4,387 | 6,823 |
BENEFITS AND OTHER DEDUCTIONS | ||||
Policyholders’ benefits | 1,339 | 1,363 | 1,828 | 2,338 |
Interest credited to policyholders’ account balances | 240 | 208 | 495 | 448 |
Compensation and benefits (includes $35, $34, $66 and $68 of deferred policy acquisition costs, respectively) | 466 | 450 | 992 | 888 |
Commissions and distribution related payments (includes $112, $116, $213 and $230 of deferred policy acquisition costs, respectively) | 377 | 389 | 748 | 771 |
Interest expense | 11 | 6 | 22 | 11 |
Amortization of deferred policy acquisition costs (net of capitalization of $147, $150, $279 and $298 of deferred policy acquisition costs, respectively) | 31 | (49) | 89 | (20) |
Other operating costs and expenses | 2,486 | 149 | 2,926 | 530 |
Total benefits and other deductions | 4,950 | 2,516 | 7,100 | 4,966 |
Income (loss) from continuing operations, before income taxes | (2,511) | 2,032 | (2,713) | 1,857 |
Income tax (expense) benefit | 553 | (419) | 622 | (298) |
Net income (loss) | (1,958) | 1,613 | (2,091) | 1,559 |
Less: net (income) loss attributable to the noncontrolling interest | (156) | (113) | (310) | (231) |
Net income (loss) attributable to AXA Equitable | $ (2,114) | $ 1,500 | $ (2,401) | $ 1,328 |
CONSOLIDATED STATEMENTS OF INC5
CONSOLIDATED STATEMENTS OF INCOME (LOSS) (UNAUDITED) (PARENTHETICAL) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Compensation and benefits | ||||
Deferred acquisition costs | $ 35 | $ 34 | $ 66 | $ 68 |
Commissions and distribution related payments | ||||
Deferred acquisition costs | 112 | 116 | 213 | 230 |
Amortization of deferred policy acquisition costs | ||||
Deferred policy acquisition costs | $ 147 | $ 150 | $ 279 | $ 298 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ (1,958) | $ 1,613 | $ (2,091) | $ 1,559 |
Other comprehensive income (loss) net of income taxes: | ||||
Foreign currency translation adjustment | (8) | (21) | (12) | 14 |
Change in unrealized gains (losses), net of reclassification adjustment | (311) | 294 | (1,052) | 386 |
Changes in defined benefit plan related items not yet recognized in periodic benefit cost, net of reclassification adjustment | (1) | 1 | (5) | 1 |
Total other comprehensive income (loss), net of income taxes | (320) | 274 | (1,069) | 401 |
Comprehensive income (loss) | (2,278) | 1,887 | (3,160) | 1,960 |
Less: Comprehensive (income) loss attributable to noncontrolling interest | (142) | (93) | (303) | (218) |
Comprehensive income (loss) attributable to AXA Equitable | $ (2,420) | $ 1,794 | $ (3,463) | $ 1,742 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY (UNAUDITED) - USD ($) $ in Millions | Total | Parent | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated other comprehensive income (loss) attributable to AXA Equitable | Noncontrolling Interest |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Common stock, at par value, beginning of year and end of period | $ 2 | ||||||
Impact of adoption of revenue recognition standard ASC 606 | $ 0 | ||||||
Beginning of year at Dec. 31, 2016 | $ 5,339 | 6,151 | $ 17 | 3,096 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | $ (172) | ||||||
Other comprehensive income (loss) | 127 | 120 | |||||
End of year at Mar. 31, 2017 | 14,505 | 5,979 | |||||
Beginning of year at Dec. 31, 2016 | 5,339 | 6,151 | 17 | 3,096 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Other changes | 22 | 4 | |||||
Net income (loss) | 1,328 | 1,328 | |||||
Stockholder dividends | 0 | ||||||
Other comprehensive income (loss) | 401 | 414 | (13) | ||||
Repurchase of AB Holding units | (91) | ||||||
Net income (loss) attributable to noncontrolling interest | 231 | ||||||
Dividends paid to noncontrolling interest | (243) | ||||||
End of year at Jun. 30, 2017 | 16,257 | $ 13,273 | 5,361 | 7,479 | 431 | 2,984 | |
Beginning of year at Dec. 31, 2016 | 5,339 | 6,151 | 17 | 3,096 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 1,326 | ||||||
Other comprehensive income (loss) | 333 | 314 | |||||
End of year at Sep. 30, 2017 | 16,139 | 13,170 | 7,476 | 331 | |||
Beginning of year at Mar. 31, 2017 | 14,505 | 5,979 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 1,500 | ||||||
Other comprehensive income (loss) | 274 | 294 | |||||
End of year at Jun. 30, 2017 | 16,257 | 13,273 | 5,361 | 7,479 | 431 | 2,984 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Common stock, at par value, beginning of year and end of period | 2 | ||||||
Net income (loss) | (1) | ||||||
Other comprehensive income (loss) | (76) | ||||||
End of year at Sep. 30, 2017 | 16,139 | 13,170 | 7,476 | 331 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Common stock, at par value, beginning of year and end of period | 2 | 2 | |||||
Impact of adoption of revenue recognition standard ASC 606 | 8 | 25 | |||||
Beginning of year at Dec. 31, 2017 | 19,564 | 6,859 | 9,010 | 598 | 3,095 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | (287) | ||||||
End of year at Mar. 31, 2018 | 18,540 | 15,452 | 8,731 | ||||
Beginning of year at Dec. 31, 2017 | 19,564 | 6,859 | 9,010 | 598 | 3,095 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Other changes | 911 | 10 | |||||
Net income (loss) | (2,401) | ||||||
Stockholder dividends | 0 | ||||||
Other comprehensive income (loss) | (1,069) | (1,062) | (7) | ||||
Repurchase of AB Holding units | (25) | ||||||
Net income (loss) attributable to noncontrolling interest | 275 | ||||||
Dividends paid to noncontrolling interest | (334) | ||||||
End of year at Jun. 30, 2018 | 16,964 | 13,925 | 7,770 | 6,617 | (464) | 3,039 | |
Beginning of year at Mar. 31, 2018 | 18,540 | 15,452 | 8,731 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | (2,114) | ||||||
Other comprehensive income (loss) | (320) | (306) | |||||
End of year at Jun. 30, 2018 | 16,964 | $ 13,925 | $ 7,770 | $ 6,617 | $ (464) | $ 3,039 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
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 | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | ||
Statement of Cash Flows [Abstract] | |||
Net income (loss) | $ (2,091) | $ 1,559 | |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Interest credited to policyholders’ account balances | (495) | (448) | |
Policy charges and fee income | (1,773) | (1,698) | |
Net derivative (gains) losses | 1,172 | (1,362) | |
Investment (gains) losses, net | (82) | 1 | |
Realized and unrealized gains (losses) on trading securities | 181 | (133) | |
Amortization of deferred compensation | 15 | 21 | |
Amortization of deferred sales commission | 13 | 17 | |
Other depreciation and amortization | (45) | (61) | |
Amortization of deferred cost of reinsurance asset | 1,885 | (171) | |
Distribution from joint ventures and limited partnerships | 44 | 50 | |
Changes in: | |||
Net broker-dealer and customer related receivables/payables | 479 | 9 | |
Reinsurance recoverable | 15 | (194) | |
Segregated cash and securities, net | (473) | (132) | |
Deferred policy acquisition costs | 89 | (20) | |
Future policy benefits | 396 | 1,303 | |
Current and deferred income taxes | (645) | 204 | |
Other, net | 416 | 84 | |
Net cash provided by (used in) operating activities | 1,190 | (75) | |
Proceeds from the sale/maturity/prepayment of: | |||
Fixed maturities, available for sale | 4,810 | 1,841 | |
Mortgage loans on real estate | 153 | 399 | |
Trading account securities | 4,843 | 5,241 | |
Other | 260 | 110 | |
Payment for the purchase/origination of: | |||
Fixed maturities, available for sale | (5,407) | (1,840) | |
Mortgage loans on real estate | (1,004) | (1,041) | |
Trading account securities | (5,075) | (6,936) | |
Other | (99) | (149) | |
Cash settlements related to derivative instruments | (267) | (907) | |
Increase in loans to affiliates | (1,100) | 0 | |
Decrease in loans to affiliates | 700 | 0 | |
Change in short-term investments | 248 | (508) | |
Investment in capitalized software, leasehold improvements and EDP equipment | (46) | (41) | |
Other, net | 379 | 243 | |
Net cash provided by (used in) investing activities | (1,605) | (3,588) | |
Policyholders’ account balances: | |||
Deposits | 5,227 | 4,109 | |
Withdrawals | (2,611) | (1,557) | |
Transfer (to) from Separate Accounts | (305) | 767 | |
Change in short-term financings | (51) | (1) | |
Change in collateralized pledged assets | 0 | 1,248 | |
Change in collateralized pledged liabilities | 694 | 192 | |
Increase (decrease) in Overdrafts payable | (29) | 69 | |
Cash received on the recapture of captive reinsurance | 1,099 | 0 | |
Repurchase of AB Holding units from noncontrolling interest | (25) | (128) | |
Redemption of noncontrolling interests of consolidated VIEs, net | (516) | (75) | |
Distribution to noncontrolling interests in consolidated subsidiaries | (334) | (243) | |
Increase (decrease) in Securities sold under agreement to repurchase | (37) | (199) | |
Other, net | (27) | 0 | |
Net cash provided by (used in) financing activities | 1,986 | 4,182 | |
Effect of exchange rate changes on cash and cash equivalents | (6) | 11 | |
Change in cash and cash equivalents | 1,565 | 530 | |
Cash and cash equivalents, beginning of year | 3,409 | 2,950 | |
Cash and Cash Equivalents, end of period | 4,974 | 3,480 | |
Non-cash transactions during the period(1) | |||
Repayment of long-term debt | [1] | 202 | 0 |
Transfer of assets to reinsurer | [1] | (604) | 0 |
Repayment of loan to affiliates | [1] | $ 300 | $ 0 |
[1] | See Note 11 for significant non-cash transactions related to the GMxB unwind and related merger of AXA RE Arizona. |
ORGANIZATION
ORGANIZATION | 6 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | ORGANIZATION A XA Equitable Life Insurance Company (“AXA Equitable” and, collectively with its consolidated subsidiaries, the “Company”) is a diversified financial services company. The Company is a direct, wholly-owned subsidiary of AXA Equitable Financial Services, LLC (“AEFS”). AEFS is a direct, wholly-owned subsidiary of AXA Financial, Inc. (“AXA Financial,” and collectively with its consolidated subsidiaries, “AXA Financial Group”). AXA Financial is a direct wholly-owned subsidiary of AXA Equitable Holdings, Inc. (“Holdings”). Prior to May 14, 2018, Holdings was a direct wholly-owned subsidiary of AXA S.A. (“AXA”), a French holding company for the AXA Group, a worldwide leader in life, property and casualty and health insurance and asset management. On May 14, 2018 , Holdings completed an initial public offering in which AXA sold a minority stake to the public. The accompanying consolidated financial statements represent the consolidated results and financial position of AXA Equitable and not the consolidated results and financial position of Holdings. The Company conducts operations in four segments: Individual Retirement, Group Retirement, Investment Management and Research, and Protection Solutions. The Company’s management evaluates the performance of each of these segments independently. • The Individual Retirement segment offers a diverse suite of variable annuity products which are primarily sold to affluent and high net worth individuals saving for retirement or seeking retirement income. • The Group Retirement segment offers tax-deferred investment and retirement plans sponsored by educational entities, municipalities and not-for-profit entities as well as small and medium-sized businesses. • The Investment Management and Research segment provides diversified investment management, research and related solutions globally to a broad range of clients through three main client channels—Institutional, Retail and Private Wealth Management—and distributes its institutional research products and solutions through Bernstein Research Services. The Investment Management and Research segment reflects the business of AllianceBernstein Holding L.P. (“AB Holding”), AllianceBernstein L.P. (“ABLP”) and their subsidiaries (collectively, “AB”). • The Protection Solutions segment includes the Company’s life insurance and group employee benefits businesses. The life insurance business offers a variety of variable universal life, indexed universal life and term life products to help affluent and high net worth individuals, as well as small and medium-sized business owners, with their wealth protection, wealth transfer and corporate needs. Our group employee benefits business offers a suite of life, short- and long-term disability, dental and vision insurance products to small and medium-size businesses across the United States. The Company reports certain activities and items that are not included in our segments in Corporate and Other. Corporate and Other includes certain of the Company’s financing and investment expenses. It also includes: the closed block of life insurance (the “Closed Block”), run-off group pension business, run-off health business, certain strategic investments and certain unallocated items, including capital and related investments, interest expense and corporate expense. AB’s results of operations are reflected in the Investment Management and Research segment. Accordingly, Corporate and Other does not include any items applicable to AB. At June 30, 2018 and June 30, 2017 , respectively, AXA Equitable’s economic interest in AB was 28.8 % and 29.3% . At June 30, 2018 and June 30, 2017 , respectively, Holdings’ economic interest in AB was 64.7 % and 46.3% . The general partner of AB, AllianceBernstein Corporation (the “General Partner”), is a wholly-owned subsidiary of the Company. Because the General Partner has the authority to manage and control the business of AB, AB is consolidated in the Company’s financial statements for all periods. Basis of Presentation The Unaudited Interim Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) on a basis consistent with reporting interim financial information in accordance with instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission (“SEC”). Intercompany balances and transactions have been eliminated. In the opinion of management, all adjustments necessary for a fair statement of the financial position and results of operations have been made. All such adjustments are of a normal, recurring nature. Interim results are not necessarily indicative of the results that may be expected for the full year. These financial statements should be read in conjunction with the Company’s Consolidated Financial Statements included in Form 10-K for the year ended December 31, 2017. The terms “ second quarter 2018 ” and “ second quarter 2017 ” refer to the three months ended June 30, 2018 and 2017 , respectively. The terms “first six months of 2018 ” and “first six months of 2017 ” refer to the six months ended June 30, 2018 and 2017 , respectively. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | SIGNIFICANT ACCOUNTING POLICIES Adoption of New Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued new guidance that revises the recognition criteria for revenue arising from contracts with customers to provide goods or services, except when those revenue streams are from insurance and investment contracts, 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, for which existing revenue recognition requirements are not superseded by this guidance. On January 1, 2018, the Company adopted the new revenue recognition guidance on a modified retrospective basis and is reporting the additional disclosures required by the new standard in first quarter 2018. Adoption of this new guidance did not change the amounts or timing of the Company’s revenue recognition for base investment management and advisory fees, distribution revenues, shareholder servicing revenues, and broker-dealer revenues. However, some performance-based fees and carried-interest distributions, that prior to adoption were recognized when no risk of reversal remained, in certain instances under the new standard may be recognized earlier if it is probable that significant reversal will not occur. As a result, on January 1, 2018, the Company recognized a cumulative effect adjustment, net of tax, to increase opening equity attributable to AXA Equitable and the noncontrolling interest by approximately $8 million and $25 million , respectively, reflecting the impact of carried-interest distributions previously received by AB of approximately $78 million , net of revenue sharing payments to investment team members of approximately $43 million , for which it is probable that significant reversal will not occur and for which incremental tax is provided at AXA Equitable. In January 2016, the FASB issued new guidance related to the recognition and measurement of financial assets and financial liabilities. The new guidance primarily affects the accounting for equity investments, financial liabilities under the fair value option, and presentation and disclosure requirements for financial instruments. In addition, the FASB clarified guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale (“AFS”) debt securities. The new guidance requires equity investments in unconsolidated entities, except those accounted for under the equity method, to be measured at fair value through earnings, thereby eliminating the AFS classification for equity securities with readily determinable fair values for which changes in fair value currently are reported in Accumulated Other Comprehensive Income (Loss) (“AOCI”). On January 1, 2018, the Company adopted the new recognition requirements on a modified retrospective basis for changes in the fair value of AFS equity securities, resulting in no material reclassification adjustment from AOCI to opening retained earnings for the net unrealized gains, net of tax, related to approximately $13 million common stock securities and eliminated their designation as AFS equity securities. The new guidance does not apply to FHLB common stock and prohibits such investments from being classified as equity securities subject to the new guidance. Accordingly, the Company has classified its investment in the FHLB common stock as other invested assets at June 30, 2018 . The Company’s investment assets held in the form of equity interests in unconsolidated entities, such as limited partnerships and limited liability companies, including hedge funds, private equity funds, and real estate-related funds, generally are accounted for under the equity method and were not impacted by this new guidance. The Company does not currently report any of its financial liabilities under the fair value option. In March 2017, the FASB issued new guidance on the presentation of net periodic pension and post-retirement benefit costs that requires retrospective disaggregation of the service cost component from the other components of net benefit costs on the income statement. The service cost component is required to be presented with other employee compensation costs in “income from operations,” and the remaining components are to be reported separately outside of income from operations. While this standard does not change the rules for how benefits costs are measured, it limits the amount eligible for capitalization on a prospective basis to the service cost component. On January 1, 2018, the Company adopted the change in the income statement presentation utilizing the practical expedient for determining the historical components of net benefits cost, resulting in no material impact to the consolidated financial statements. In addition, no changes to the Company’s capitalization policies with respect to benefits costs resulted from adoption of the new guidance. In May 2017, the FASB issued guidance on share-based payments. The amendment provides clarity intended to reduce diversity in practice and the cost and complexity of accounting for changes to the terms or conditions of share-based payment awards. The new guidance is effective for interim and annual periods beginning after December 15, 2017 and requires prospective application to awards modified on or after the date of adoption. Adoption of this amendment on January 1, 2018 did not have a material impact on the Company’s consolidated financial statements. 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. Adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. Future Adoption of New Accounting Pronouncements In June 2018, the FASB issued new guidance that largely aligns the accounting for share-based payment awards issued to employees and non-employees. The amendments in the new guidance are effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods, with early adoption permitted. Changes to the accounting for non-employee awards should be applied to all new awards as well as outstanding awards using transition provisions intended to simplify adoption by eliminating the need to retrospectively determine fair values at historical grant dates. The Company has granted share-based payment awards only to employees as defined by accounting guidance and does not expect this guidance will have a material impact on its consolidated financial statements. In February 2018, the FASB issued new guidance that will permit, but not require, entities to reclassify to retained earnings tax effects “stranded” in AOCI resulting from the change in federal tax rate enacted by the Tax Cuts and Jobs Act (the “Tax Reform Act”) on December 22, 2017. An entity that elects this option must reclassify these stranded tax effects for all items in AOCI, including, but not limited to, AFS securities and employee benefits. Tax effects stranded in AOCI for other reasons, such as prior changes in tax law, may not be reclassified. While the new guidance provides entities the option to reclassify these amounts, new disclosures are required regardless of whether entities elect to do so. The new guidance is effective for interim and annual periods beginning after December 15, 2018, with early adoption permitted. Election can be made either to apply the new guidance retrospectively to each period in which the effect of the Tax Reform Act is recognized or in the period of adoption. Management currently is evaluating the options provided for adopting this guidance and the potential impacts on the Company’s consolidated financial statements. In August 2017, the FASB issued new guidance on accounting for hedging activities, intended to more closely align the financial statement reporting of hedging relationships to the economic results of an entity’s risk management activities. In addition, the new guidance makes certain targeted modifications to simplify the application of current hedge accounting guidance. The new guidance is effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years, with early application permitted. The effect of adoption should be reflected as of the beginning of the fiscal year of adoption (that is, the initial application date). All transition requirements and elections should be applied to derivatives positions and hedging relationships existing on the date of adoption. Management currently is evaluating the impact that adoption of this guidance will have on the Company’s consolidated financial statements. In March 2017, the FASB issued guidance that requires certain premiums on callable debt securities to be amortized to the earliest call date and is intended to better align interest income recognition with the manner in which market participants price these instruments. The new guidance is effective for interim and annual periods beginning after December 15, 2018 with early adoption permitted and is to be applied on a modified retrospective basis. Management currently is 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 currently is evaluating the impact that adoption of this guidance will have on the Company’s consolidated financial statements. In February 2016, the FASB issued revised guidance to lease accounting that will require lessees to recognize on the balance sheet a “right-of-use” asset and a lease liability for virtually all lease arrangements, including those embedded in other contracts. The new lease accounting model will continue to distinguish between capital and operating leases. The current straight-line pattern for the recognition of rent expense on an operating lease is expected to remain substantially unchanged by the new guidance but instead will be comprised of amortization of the right-of-use asset and interest cost on the related lease obligation, thereby resulting in an income statement presentation similar to a financing arrangement or capital lease. Lessor accounting will remain substantially unchanged from the current model but has been updated to align with certain changes made to the lessee model. Although early adoption is permitted, the Company expects to adopt ASU 2016-02, as well as other related clarifications and interpretive guidance issued by the FASB, when it becomes effective on January 1, 2019. The Company plans to elect the optional modified retrospective transition method to apply the provisions of the new standard at the adoption date, which will result in recognition and measurement of leases as a cumulative-effect adjustment to opening retained earnings in the period of adoption. Under this transition method, the Company would not recast the prior financial statements presented. 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 lease contracts and arrangements. Management currently is evaluating the impact that adoption of this guidance will have on the Company’s consolidated financial statements. Revenue Recognition Investment Management and Service Fees and Related Expenses Reported as Investment management and service fees in the Company’s consolidated statements of income (loss) are investment advisory and service fees, distribution revenues, and institutional research services revenues principally emerging from the Investment Management and Research segment. Also included are investment management and administrative service fees earned by AXA Equitable Funds Management Group, LLC (“AXA Equitable FMG”) and reported in the Individual Retirement, Group Retirement and Protection Solutions segments as well as certain asset-based fees associated with insurance contracts. Investment management, advisory, and service fees AB provides asset management services by managing customer assets and seeking to deliver returns to investors. Similarly, AXA Equitable FMG provides investment management and administrative services, such as fund accounting and compliance services, to AXA Premier VIP Trust (“VIP Trust”), EQ Advisors Trust (“EQAT”) and 1290 Funds as well as two private investment trusts established in the Cayman Islands, AXA Allocation Funds Trust and AXA Offshore Multimanager Funds Trust (collectively, the “Other AXA Trusts”). The contracts supporting these revenue streams create a distinct, separately identifiable performance obligation for each day the assets are managed for the performance of a series of services that are substantially the same and have the same pattern of transfer to the customer. Accordingly, these investment management, advisory, and service base fees are recorded over time as services are performed and entitle the Company to variable consideration. Base fees, generally calculated as a percentage of assets under management (“AUM”), are recognized as revenue at month-end when the transaction price no longer is variable and the value of the consideration is determined. These fees are not subject to claw back and there is minimal probability that a significant reversal of the revenue recorded will occur. Certain investment advisory contracts of AB, including those associated with hedge funds or other alternative investments, provide for a performance-based fee (including carried interest), in addition to a base advisory fee, calculated either as a percentage of absolute investment results or a percentage of investment results in excess of a stated benchmark over a specified period of time. These performance-based fees are forms of variable consideration and therefore, are excluded from the transaction price until it becomes probable there will not be significant reversal of the cumulative revenue recognized. At each reporting date, the Company evaluates constraining factors surrounding the variable consideration to determine the extent to which, if any, revenues associated with the performance-based fee can be recognized. Constraining factors impacting the amount of variable consideration included in the transaction price include contractual claw-back provisions, the length of time of the uncertainty, the number and range of possible amounts, the probability of significant fluctuations in the fund’s market value, and the level in which the fund’s value exceeds the contractual threshold required to earn such a fee and the materiality of the amount being evaluated. Prior to adoption of the new revenue recognition guidance on January 1, 2018, the Company recognized performance-based fees at the end of the applicable measurement period when no risk of reversal remained, and carried-interest distributions received as deferred revenues until no risk of reversal remained. Sub-advisory and sub-administrative expenses associated with these services are calculated and recorded as the related services are performed in Other operating costs and expense in the consolidated statements of income (loss) as the Company is acting in a principal capacity in these transactions and, as such, reflects these revenues and expenses on a gross basis. Research services Research services revenue principally consists of brokerage transaction charges received by Sanford C. Bernstein & Co. LLC (“SCB LLC”) and Sanford C. Bernstein Limited (“SCBL”) for providing equity research services to institutional clients. Brokerage commissions for trade execution services and related expenses are recorded on a trade-date basis when the performance obligations are satisfied. Generally, the transaction price is agreed upon at the point of each trade and based upon the number of shares traded or the value of the consideration traded. Research revenues are recognized when the transaction price is quantified, collectability is assured, and significant reversal of such revenue is not probable. Distribution services Revenues from distribution services include fees received as partial reimbursement of expenses incurred in connection with the sale of certain AB sponsored mutual funds and the 1290 Funds and for the distribution primarily of EQAT and VIP Trust shares to separate accounts in connection with the sale of variable life and annuity contracts. The amount and timing of revenues recognized from performance of these distribution services often is dependent upon the contractual arrangements with the customer and the specific product sold as further described below. Most open-end management investment companies, such as U.S. funds and the EQAT and VIP Trusts and the 1290 Funds, have adopted a plan under Rule 12b-1 of the Investment Company Act that allows for certain share classes to pay out of assets, distribution and service fees for the distribution and sale of its shares (“12b-1 Fees”). These open-end management investment companies have such agreements with the Company, and the Company has selling and distribution agreements pursuant to which it pays sales commissions to the financial intermediaries that distribute the shares. These agreements may be terminated by either party upon notice (generally 30 days) and do not obligate the financial intermediary to sell any specific amount of shares. The Company records 12b-1 fees monthly based upon a percentage of the net asset value (“NAV”) of the funds. At month-end, the variable consideration of the transaction price is no longer constrained as the NAV can be calculated and the value of consideration is determined. These services are separate and distinct from other asset management services as the customer can benefit from these services independently of other services. The Company accrues the corresponding 12b-1 fees paid to sub-distributors monthly as the expenses are incurred. The Company is acting in a principal capacity in these transactions; as such, these revenues and expenses are recorded on a gross basis in the consolidated statements of income (loss). AB sponsored mutual funds offer back-end load shares in limited instances and charge the investor a contingent deferred sales charge (“CDSC”) if the investment is redeemed within a certain period. The variable consideration for these contracts is contingent upon the timing of the redemption by the investor and the value of the sales proceeds. Due to these constraining factors, the Company excludes the CDSC fee from the transaction price until the investor redeems the investment. Upon redemption, the cash consideration received for these contractual arrangements is recorded as a reduction of unamortized deferred sales commissions. AB’s Luxembourg subsidiary, the management company for most of its non-U.S. funds earns a management fee which is accrued daily and paid monthly, at an annual rate, based on the average daily net assets of the fund. With respect to certain share classes, the management fee also may contain a component paid to distributors and other financial intermediaries and service providers to cover shareholder servicing and other administrative expenses (also referred to as an “All-in-Fee”). Based on the conclusion that asset management is distinct from distribution, the Company allocates a portion of the investment and advisory fee to distribution revenues for the servicing component based on standalone selling prices. Other revenues Also reported as Investment management and service fees in the Company’s consolidated statements of income (loss) are other revenues from contracts with customers, primarily consisting of shareholder servicing fees, mutual fund reimbursements, and other brokerage income. Shareholder services, including transfer agency, administration, and record-keeping are provided by AB to company-sponsored mutual funds. The consideration for these services is based on a percentage of the NAV of the fund or a fixed-fee based on the number of shareholder accounts being serviced. The revenues are recorded at month-end when the constraining factors involved with determining NAV or the numbers of shareholders’ accounts are resolved. Other income Revenues from contracts with customers reported as Other income in the Company’s consolidated statements of income (loss) primarily consist of commission and expense reimbursements related to business reinsured with affiliates and distribution fees received by the Company’s subsidiary broker-dealer for sales of affiliate insurers’ life insurance and annuity products. These revenues are recognized at month-end when constraining factors, such as premiums ceded and product mix, are resolved and the value of consideration is determined. Contract assets and liabilities The Company applies the practical expedient for contracts that have an original duration of one year or less. Accordingly, the Company accrues the incremental costs of obtaining a contract when incurred and does not consider the time value of money. At June 30, 2018 there are no material balances of contract assets and contract liabilities; as such, no further disclosures are necessary. Accounting and Consolidation of Variable Interest Entities (“VIEs”) A VIE must be consolidated by its primary beneficiary, which generally is defined as the party that 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 June 30, 2018 , the Company held approximately $ 1,145 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 Company 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 or other financial arrangements, if any, the Company 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 $ 166,099 million, and the Company’s maximum exposure to loss from its direct involvement with these VIEs is the carrying value of its investment of $ 1,145 million at June 30, 2018 . Except for approximately $ 771 million of unfunded commitments at June 30, 2018 , the Company has no further economic interest in these VIEs in the form of guarantees, derivatives, credit enhancements or similar instruments and obligations. At June 30, 2018 , the Company consolidated one real estate joint venture for which it was identified as primary beneficiary under the VIE model. The consolidated entity is jointly owned by AXA Equitable and AXA France and holds an investment in a real estate venture. Included in the Company’s consolidated balance sheet at June 30, 2018 , are total assets of $ 37 million related to this VIE, primarily resulting from the consolidated presentation of $ 37 million of real estate held for production of income. In addition, real estate held for production of income reflects $ 16 million as related to two non-consolidated joint ventures at June 30, 2018 . Included in the Company’s consolidated balance sheet at June 30, 2018 are assets of $ 225 million , liabilities of $ 5 million and redeemable non-controlling interest of $ 93 million associated with the consolidation of AB-sponsored investment funds under the VIE model. Also included in the Company’s consolidated balance sheets are assets of $ 108 million , liabilities of $ 2 million and redeemable non-controlling interest of $ 10 million from consolidation of AB-sponsored investment funds under the VOE model. The assets of these consolidated funds are presented within Other invested assets and cash and cash equivalents, and liabilities of these consolidated funds are presented with other liabilities on the face of the Company’s consolidated balance sheet at June 30, 2018 ; ownership interests not held by the Company relating to consolidated VIEs and VOEs are presented either as redeemable or non-redeemable noncontrolling interest, as appropriate. The Company is not required to provide financial support to these company-sponsored investment funds, and only the assets of such funds are available to settle each fund’s liabilities. As of June 30, 2018 , the net assets of AB sponsored investment products that are non-consolidated VIEs are approximately $ 47.6 billion, and the Company’s maximum risk of loss is its investment of $ 6 million in these VIEs and its advisory fee receivables from these VIEs, which are not material. Impact of the Tax Reform Act On December 22, 2017, President Trump signed into law the Tax Reform Act, a broad overhaul of the U.S. Internal Revenue Code that changes long-standing provisions governing the taxation of U.S. corporations, including life insurance companies. The Tax Reform Act reduces the federal corporate income tax rate to 21% beginning in 2018 and repeals the corporate alternative minimum tax (“AMT”) while keeping existing AMT credits. It also includes changes to the dividends received deduction (“DRD”), insurance reserves and tax DAC, and measures affecting our international operations, such as a one-time transitional tax on some of the accumulated earnings of our foreign subsidiaries (within our Investment Management and Research segment). We expect the Tax Reform Act to have both positive and negative impacts on our consolidated balance sheet. On the one hand, as a one-time effect, the lower tax rate resulted in a reduction to the value of our deferred tax assets. On the other hand, the Tax Reform Act repeals the corporate AMT and, subject to certain limitations, allows us to use our AMT credits going forward, which will result in a reduction of our tax liability. We expect the tax liability on the earnings of our foreign subsidiaries will decrease going forward. In 2017, we recorded a one-time estimated decrease to net income of $23 million due to the estimated transitional tax on some of the accumulated earnings of these subsidiaries. Overall, we expect the Tax Reform Act to have a net positive economic impact on us. At December 31, 2017, we recorded a provisional estimate of the income tax effects related to the Tax Reform Act. During the six months ended June 30, 2018 , we have not recorded any changes to this estimate. We continue to evaluate this new and complicated piece of legislation, assess the magnitude of the various impacts and monitor potential regulatory changes related to this reform. |
INVESTMENTS
INVESTMENTS | 6 Months Ended |
Jun. 30, 2018 | |
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) June 30, 2018: Fixed Maturity Securities: Public corporate $ 17,368 $ 356 $ 423 $ 17,301 $ — Private corporate 7,004 88 147 6,945 — U.S. Treasury, government and agency 14,112 206 415 13,903 — States and political subdivisions 413 50 1 462 — Foreign governments 440 18 11 447 — Residential mortgage-backed (1) 211 10 — 221 — Asset-backed (2) 621 1 5 617 2 Redeemable preferred stock 469 33 4 498 — Total at June 30, 2018 $ 40,638 $ 762 $ 1,006 $ 40,394 $ 2 As a result of the adoption of the Financial Instruments - Recognition and Measurement of Financial Assets and Financial Liabilities (ASU 2016-01) standard on January 1, 2018, equity securities are no longer classified and accounted for as available-for-sale securities (see Note 2). Amortized Gross Unrealized Gross Unrealized Fair OTTI (3) (in millions) December 31, 2017: Fixed Maturity Securities: Public corporate $ 13,645 $ 725 $ 25 $ 14,345 $ — Private corporate 6,951 217 31 7,137 — U.S. Treasury, government and agency 12,644 676 185 13,135 — States and political subdivisions 414 67 — 481 — Foreign governments 387 27 5 409 — Residential mortgage-backed (1) 236 15 — 251 — Asset-backed (2) 93 3 — 96 2 Redeemable preferred stock 461 44 1 504 — Total Fixed Maturities 34,831 1,774 247 36,358 2 Equity securities 157 — — 157 — Total at December 31, 2017 $ 34,988 $ 1,774 $ 247 $ 36,515 $ 2 (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. (3) Amounts represent OTTI losses in AOCI, which were not included in income (loss) in accordance with current accounting guidance. The contractual maturities of AFS fixed maturities at June 30, 2018 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 June 30, 2018 Amortized Cost Fair Value (in millions) Due in one year or less $ 1,683 $ 1,688 Due in years two through five 7,582 7,664 Due in years six through ten 12,810 12,641 Due after ten years 17,262 17,065 Subtotal 39,337 39,058 Residential mortgage-backed securities 211 221 Asset-backed securities 621 617 Redeemable preferred stock 469 498 Total $ 40,638 $ 40,394 The following table shows proceeds from sales, gross gains (losses) from sales and OTTI for AFS fixed maturities during the three and six months ended June 30, 2018 and 2017 : Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 (in millions) Proceeds from sales $ 373 $ 121 $ 3,801 $ 535 Gross gains on sales $ 7 $ 10 $ 134 $ 29 Gross losses on sales $ (14 ) $ (7 ) $ (55 ) $ (27 ) Total OTTI $ — $ (13 ) $ — $ (13 ) Non-credit losses recognized in OCI — — — — Credit losses recognized in net income (loss) $ — $ (13 ) $ — $ (13 ) 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 June 30, Six Months Ended June 30, 2018 2017 2018 2017 (in millions) Balances, beginning of period $ (10 ) $ (147 ) $ (10 ) $ (190 ) Previously recognized impairments on securities that matured, paid, prepaid or sold 1 45 1 88 Recognized impairments on securities impaired to fair value this period (1) — — — — Impairments recognized this period on securities not previously impaired — (13 ) — (13 ) Additional impairments this period on securities previously impaired — — — — 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 June 30 $ (9 ) $ (115 ) $ (9 ) $ (115 ) (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 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: June 30, December 31, 2017 (in millions) AFS Securities: Fixed maturities: With OTTI loss $ 1 $ 1 All other (245 ) 1,526 Net Unrealized Gains (Losses) $ (244 ) $ 1,527 As a result of the adoption of the Financial Instruments - Recognition and Measurement of Financial Assets and Financial Liabilities (ASU 2016-01) standard on January 1, 2018 (see Note 2), equity securities are no longer classified and accounted for as available-for-sale securities. Changes in net unrealized investment gains (losses) recognized in AOCI include reclassification adjustments to reflect amounts realized in Net income (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: Net Unrealized Gains (Losses) on Fixed Maturities with OTTI Losses Net DAC Policyholders’ Deferred AOCI Gain (in millions) Balance, April 1, 2018 $ (1 ) $ — $ — $ (5 ) $ (6 ) Net investment gains (losses) arising during the period — — — — — Reclassification adjustment: Included in Net income (loss) 2 — — — 2 Excluded from Net income (loss) (1) — — — — — Impact of net unrealized investment gains (losses) on: DAC — — — — — Deferred income taxes — — — 5 5 Policyholders’ liabilities — — — — — Balance, June 30, 2018 $ 1 $ — $ — $ — $ 1 Balance, April 1, 2017 $ 20 $ (5 ) $ (5 ) $ (4 ) $ 6 Net investment gains (losses) arising during the period (44 ) — — — (44 ) Reclassification adjustment: Included in Net income (loss) 18 — — — 18 Excluded from Net income (loss) (1) — — — — — Impact of net unrealized investment gains (losses) on: DAC — 7 — — 7 Deferred income taxes — — — 5 5 Policyholders’ liabilities — — 6 — 6 Balance, June 30, 2017 $ (6 ) $ 2 $ 1 $ 1 $ (2 ) (1) Represents “transfers in” related to the portion of OTTI losses recognized during the period that were not recognized in income (loss) for securities with no prior OTTI loss. Net DAC Policyholders’ Deferred AOCI Gain (in millions) Balance, January 1, 2018 $ 1 $ 1 $ (1 ) $ (5 ) $ (4 ) Net investment gains (losses) arising during the period — — — — — Reclassification adjustment: Included in Net income (loss) — — — — — Excluded from Net income (loss) (1) — — — — — Impact of net unrealized investment gains (losses) on: DAC — (1 ) — — (1 ) Deferred income taxes — — — 5 5 Policyholders’ liabilities — — 1 — 1 Balance, June 30, 2018 $ 1 $ — $ — $ — $ 1 Balance, January 1, 2017 $ 19 $ (1 ) $ (10 ) $ (3 ) $ 5 Net investment gains (losses) arising during the period 5 — — — 5 Reclassification adjustment: Included in Net income (loss) (30 ) — — — (30 ) Excluded from Net income (loss) (1) — — — — — Impact of net unrealized investment gains (losses) on: DAC — 3 — — 3 Deferred income taxes — — — 4 4 Policyholders’ liabilities — — 11 — 11 Balance, June 30, 2017 $ (6 ) $ 2 $ 1 $ 1 $ (2 ) (1) Represents “transfers in” related to the portion of OTTI losses recognized during the period that were not recognized in income (loss) for securities with no prior OTTI loss. All Other Net Unrealized Investment Gains (Losses) in AOCI Net DAC Policyholders’ Deferred AOCI Gain (in millions) Balance, April 1, 2018 $ 193 $ (27 ) $ (124 ) $ (103 ) $ (61 ) Net investment gains (losses) arising during the period (441 ) — — — (441 ) Reclassification adjustment: — Included in Net income (loss) 3 — — — 3 Excluded from Net income (loss) (1) — — — — — Impact of net unrealized investment gains (losses) on: DAC — 38 — — 38 Deferred income taxes — — — 76 76 Policyholders’ liabilities — — 14 — 14 Balance, June 30, 2018 $ (245 ) $ 11 $ (110 ) $ (27 ) $ (371 ) Balance, April 1, 2017 $ 606 $ (143 ) $ (162 ) $ (106 ) $ 195 Net investment gains (losses) arising during the period 524 — — — 524 Reclassification adjustment: — Included in Net income (loss) 15 — — — 15 Excluded from Net income (loss) (1) — — — — — Impact of net unrealized investment gains (losses) on: DAC — (57 ) — — (57 ) Deferred income taxes — — — (157 ) (157 ) Policyholders’ liabilities — — (29 ) — (29 ) Balance, June 30, 2017 $ 1,145 $ (200 ) $ (191 ) $ (263 ) $ 491 (1) Represents “transfers out” related to the portion of OTTI losses during the period that were not recognized in income (loss) for securities with no prior OTTI loss. Net DAC Policyholders’ Deferred AOCI Gain (in millions) Balance, January 1, 2018 $ 1,526 $ (315 ) $ (232 ) $ (300 ) $ 679 Net investment gains (losses) arising during the period (1,686 ) — — — (1,686 ) Reclassification adjustment: — Included in Net income (loss) (85 ) — — — (85 ) Excluded from Net income (loss) (1) — — — — — Impact of net unrealized investment gains (losses) on: DAC — 326 — — 326 Deferred income taxes — — — 273 273 Policyholders’ liabilities — — 122 — 122 Balance, June 30, 2018 $ (245 ) $ 11 $ (110 ) $ (27 ) $ (371 ) Balance, January 1, 2017 $ 428 $ (70 ) $ (188 ) $ (60 ) $ 110 Net investment gains (losses) arising during the period 690 — — — 690 Reclassification adjustment: — Included in Net income (loss) 27 — — — 27 Excluded from Net income (loss) (1) — — — — — Impact of net unrealized investment gains (losses) on: DAC — (130 ) — — (130 ) Deferred income taxes — — — (203 ) (203 ) Policyholders’ liabilities — — (3 ) — (3 ) Balance, June 30, 2017 $ 1,145 $ (200 ) $ (191 ) $ (263 ) $ 491 (1) Represents “transfers out” related to the portion of OTTI losses during the period that were not recognized in income (loss) for securities with no prior OTTI loss. The following tables disclose the fair values and gross unrealized losses of the 1,429 issues at June 30, 2018 and the 620 issues at December 31, 2017 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) June 30, 2018: Fixed Maturity Securities: Public corporate $ 9,005 $ 393 $ 501 $ 30 $ 9,506 $ 423 Private corporate 2,982 97 700 50 3,682 147 U.S. Treasury, government and agency 4,871 86 2,868 329 7,739 415 States and political subdivisions 19 1 — — 19 1 Foreign governments 128 3 73 8 201 11 Residential mortgage-backed 14 — — — 14 — Asset-backed 535 5 — — 535 5 Redeemable preferred stock 107 2 12 2 119 4 Total $ 17,661 $ 587 $ 4,154 $ 419 $ 21,815 $ 1,006 December 31, 2017: Fixed Maturity Securities: Public corporate $ 1,384 $ 9 $ 548 $ 16 $ 1,932 $ 25 Private corporate 718 8 615 23 1,333 31 U.S. Treasury, government and agency 2,150 6 3,005 179 5,155 185 States and political subdivisions 20 — — — 20 — Foreign governments 11 — 73 5 84 5 Residential mortgage-backed 18 — — — 18 — Asset-backed 7 — 2 — 9 — Redeemable preferred stock 7 — 12 1 19 1 Total $ 4,315 $ 23 $ 4,255 $ 224 $ 8,570 $ 247 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 0.5 % of total investments. The largest exposures to a single issuer of corporate securities held at June 30, 2018 and December 31, 2017 were $ 200 million and $182 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 National Association of Insurance Commissioners (“NAIC”) designation of 3 (medium grade), 4 or 5 (below investment grade) or 6 (in or near default). At June 30, 2018 and December 31, 2017 , respectively, approximately $ 1,253 million and $1,309 million , or 3.1 % and 3.8% , of the $ 40,638 million and $34,831 million aggregate amortized cost of fixed maturities held by the Company were considered to be other than investment grade. These securities had net unrealized gains and (losses) of $ (13) million and $5 million at June 30, 2018 and December 31, 2017 , respectively. At June 30, 2018 and December 31, 2017 , respectively, the $419 million and $224 million of gross unrealized losses of twelve months or more were concentrated in corporate and U.S. Treasury, government and agency securities. In accordance with the policy described in Note 2 , the Company concluded that an adjustment to income for OTTI for these securities was not warranted at either June 30, 2018 or 2017 . At June 30, 2018 and December 31, 2017 , 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. The Company does not originate, purchase or warehouse residential mortgages and is not in the mortgage servicing business. At June 30, 2018 , the carrying value of fixed maturities that were non-income producing for the twelve months preceding that date was $ 2 million. For the three and six months ended June 30, 2018 and 2017 , investment income is shown net of investment expenses of $13 million , $ 32 million , $10 million and $ 29 million respectively. At June 30, 2018 and December 31, 2017 , the fair values of the Company’s trading account securities were $ 13,900 million and $12,628 million , respectively. Also at June 30, 2018 and December 31, 2017 , trading securities included the General Account’s investment in Separate Accounts, which had carrying values of $ 50 million and $49 million . Net unrealized and realized gains (losses) on trading account equity securities are included in Net investment income (loss) in the Consolidated Statements of Income (Loss). The table below shows a breakdown of Net investment income from trading account securities during the three and six months ended June 30, 2018 and 2017 : Net Investment Income (Loss) from Trading Securities Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 (in millions) Net investment gains (losses) recognized during the period on securities held at the end of the period $ (108 ) $ 57 $ (172 ) $ 108 Net investment gains (losses) recognized on securities sold during the period $ (10 ) $ 23 (9 ) 25 Unrealized and realized gains (losses) on trading securities arising during the period (118 ) 80 (181 ) 133 Interest and dividend income from trading securities 80 49 146 89 Net investment income (loss) from trading securities $ (38 ) $ 129 $ (35 ) $ 222 Mortgage Loans The payment terms of mortgage loans may from time to time be restructured or modified. 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 June 30, 2018 and December 31, 2017 , the carrying values of commercial mortgage loans on real estate that had been classified as nonaccrual loans were $ 19 million and $19 million , respectively. Valuation Allowances for Mortgage Loans: Allowance for credit losses for mortgage loans for the first six months of 2018 and 2017 are as follows: Six Months Ended June 30, 2018 2017 Allowance for credit losses: (in millions) Beginning balance, January 1, $ 8 $ 8 Charge-offs — — Recoveries (1 ) — Provision — — Ending balance, June 30, $ 7 $ 8 June 30, Individually Evaluated for Impairment $ 7 $ 8 There were no allowances for credit losses for agricultural mortgage loans for the first six months of 2018 and 2017 . The following tables provide information relating to the loan to value and debt service coverage ratios for commercial and agricultural mortgage loans at June 30, 2018 and December 31, 2017. The values used in these ratios 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 June 30, 2018 Debt Service Coverage Ratio (1) 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% $ 770 $ 21 $ 330 $ 73 $ — $ — $ 1,194 50% - 70% 4,709 588 1,280 411 152 — 7,140 70% - 90% 217 110 144 309 27 — 807 90% plus — — 27 — — — 27 Total Commercial Mortgage Loans $ 5,696 $ 719 $ 1,781 $ 793 $ 179 $ — $ 9,168 Agricultural Mortgage Loans (1) 0% - 50% $ 280 $ 141 $ 266 $ 528 $ 316 $ 31 $ 1,562 50% - 70% 114 55 227 366 234 50 1,046 70% - 90% — — — 23 — — 23 90% plus — — — — — — — Total Agricultural Mortgage Loans $ 394 $ 196 $ 493 $ 917 $ 550 $ 81 $ 2,631 Total Mortgage Loans (1) 0% - 50% $ 1,050 $ 162 $ 596 $ 601 $ 316 $ 31 $ 2,756 50% - 70% 4,823 643 1,507 777 386 50 8,186 70% - 90% 217 110 144 332 27 — 830 90% plus — — 27 — — — 27 Total Mortgage Loans $ 6,090 $ 915 $ 2,274 $ 1,710 $ 729 $ 81 $ 11,799 (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, 2017 Debt Service Coverage Ratio (1) 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% $ 742 $ — $ 320 $ 74 $ — $ — $ 1,136 50% - 70% 4,088 682 1,066 428 145 — 6,409 70% - 90% 169 110 196 272 50 — 797 90% plus — — 27 — — — 27 Total Commercial Mortgage Loans $ 4,999 $ 792 $ 1,609 $ 774 $ 195 $ — $ 8,369 Agricultural Mortgage Loans (1) 0% - 50% $ 272 $ 149 $ 275 $ 515 $ 316 $ 30 $ 1,557 50% - 70% 111 46 227 359 221 49 1,013 70% - 90% — — — 4 — — 4 90% plus — — — — — — — Total Agricultural Mortgage Loans $ 383 $ 195 $ 502 $ 878 $ 537 $ 79 $ 2,574 Total Mortgage Loans (1) 0% - 50% $ 1,014 $ 149 $ 595 $ 589 $ 316 $ 30 $ 2,693 50% - 70% 4,199 728 1,293 787 366 49 7,422 70% - 90% 169 110 196 276 50 — 801 90% plus — — 27 — — — 27 Total Mortgage Loans $ 5,382 $ 987 $ 2,111 $ 1,652 $ 732 $ 79 $ 10,943 (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 June 30, 2018 and December 31, 2017 , respectively. Age Analysis of Past Due Mortgage Loan 30-59 Days 60-89 Days 90 Days or > Total Current Total Financing Receivables Recorded Investment 90 Days or > and Accruing (in millions) June 30, 2018 Commercial $ — $ — $ 27 $ 27 $ 9,141 $ 9,168 $ — Agricultural 46 12 21 79 2,552 2,631 21 Total Mortgage Loans $ 46 $ 12 $ 48 $ 106 $ 11,693 $ 11,799 $ 21 December 31, 2017 Commercial $ 27 $ — $ — $ 27 $ 8,342 $ 8,369 $ — Agricultural 49 3 22 74 2,500 2,574 22 Total Mortgage Loans $ 76 $ 3 $ 22 $ 101 $ 10,842 $ 10,943 $ 22 The following table provides information relating to impaired loans at June 30, 2018 and December 31, 2017 , respectively Impaired Mortgage Loans Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment (1) Interest Income Recognized (in millions) June 30, 2018: With no related allowance recorded: Commercial mortgage loans - other $ — $ — $ — $ — $ — Agricultural mortgage loans — — — — — Total $ — $ — $ — $ — $ — With related allowance recorded: Commercial mortgage loans - other $ 27 $ 27 $ 7 $ 27 $ — Agricultural mortgage loans — — — — — Total $ 27 $ 27 $ 7 $ 27 $ — December 31, 2017: With no related allowance recorded: Commercial mortgage loans - other $ — $ — $ — $ — $ — Agricultural mortgage loans — — — — — Total $ — $ — $ — $ — $ — With related allowance recorded: Commercial mortgage loans - other $ 27 $ 27 $ (8 ) $ 27 $ 2 Agricultural mortgage loans — — — — — Total $ 27 $ 27 $ (8 ) $ 27 $ 2 (1) Represents a two-quarter average of recorded amortized cost. Real Estate In March 2018, AXA Equitable Life sold its interest in two consolidated real estate joint ventures to AXA France for a total purchase price of approximately $143 million , which resulted in a pre-tax loss of $0.2 million and the reduction of $203 million of long-term debt on the Company’s balance sheet for the first six months of 2018 . 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 (“DUP”) approved by the NYDFS. Derivatives are generally not accounted for using hedge accounting, with the exception of Treasury Inflation-Protected Securities (“TIPS”), which is discussed further below. 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 and equity options credit and foreign exchange derivatives as well as bond and repo transactions to support the hedging. The derivative contracts are collectively managed in an effort to reduce the economic impact of unfavorable changes in guaranteed benefits’ exposures attributable to movements in capital markets. In addition, as part of our hedging strategy the Company holds static hedge positions to maintain a target asset level for all variable annuity products at or above a CTE98 level under most economic scenarios (CTE is a statistical measure of tail risk which quantifies the total asset requirement to sustain a loss if an event outside a given probability level has occurred. CTE 98 denotes the financial resources a company would need to cover the average of the worst 2% of scenarios). Derivatives utilized to hedge exposure to Variable Annuities with Guarantee Features The Company has issued and continues to offer variable annuity products with variable annuity guaranteed benefits (“GMxB”), including guaranteed minimum living benefits (“GMLBs”) (such as guaranteed minimum income benefits (“GMIBs”), guaranteed minimum withdrawal benefits (“GMWBs”) and guaranteed minimum accumulation benefits (“GMABs”)), and guaranteed minimum death benefits (“GMDBs”) (inclusive of return of premium death benefit guarantees). 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, 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 products that have a GMxB derivative features liability is that under-performance of the financial markets could result in the GMxB derivative features’ benefits being higher than what accumulated policyholders’ account balances would support. For GMxB features, the Company retains certain risks including basis, credit spread and some volatility risk and risk associated with actual versus expected actuarial assumptions for mortality, lapse and surrender, withdrawal and policyholder election rates, among other things. The derivative contracts are managed to correlate with changes in the value of the GMxB 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 implemented static hedge positions to maintain a target asset level for all variable annuities at a CTE98 level under most scenarios, and at a CTE95 level in extreme scenarios. This program was implemented in December 2017. Derivatives used to hedge crediting rate exposure on SCS, SOI, MSO, and IUL products/investment options The Company hedges crediting rates in the Structured Capital Strategies (“SCS”) variable annuity, Structured Investment Option in the EQUI-VEST variable annuity series (“SIO”), Market Stabilizer Option (“MSO”) in the variable life insurance products and Indexed Universal Life (“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 without any basis risk due to market exposures, thereby substantially reducing any exposure to market-related earnings volatility. Derivatives used for General Account Investment Portfolio The Company maintains a strategy in its General Account investment portfolio to replicate the credit exposure of fixed maturity securities otherwise permissible for investment under its investment guidelines through the sale of credit default swaps (“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 generally transacts the sale of CDSs 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 or euro-equivalent of the derivative notional amount. The Standard North American CDS Contract (“SNAC”) or Standard European Corporate Contract (“STEC”) under which the Company executes these CDS sales transactions does not contain recourse provisions for recovery of amounts paid under the credit derivative. The Company purchased 30-year 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 swaps, when considered in combination with the bonds, together result in a net position that is intended to replicate a dollar-denominated fixed-coupon cash bond with a yield higher than a term-equivalent U.S. Treasury bond. At June 30, 2018 and December 31, 2017 , the Company’s unrealized gains (losses) related to this program were $95 million and $86 million , respectively, and reported in AOCI. The Company implemented a strategy to hedge a portion of the credit exposure in its General Account investment portfolio by buying protection through a swap. These are swaps on the “super senior tranche” of the investment grade CDX index. Under the terms of these swaps, the Company pays quarterly fixed premiums that, together with any initial amount paid or received at trade inception, serve as premiums paid to hedge the risk arising from multiple defaults of bonds referenced in the CDX index. These credit derivatives have 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 derivative gains (losses). In 2016, the Company implemented a program to mitigate its duration gap using total return swaps for which the reference U.S. Treasury securities are sold to the swap counterparty under arrangements economically similar to repurchase agreements. 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. Under this program the Company derecognized approximately $ 3,905 million U.S. Treasury securities for which the Company received proceeds of approx |
CLOSED BLOCK
CLOSED BLOCK | 6 Months Ended |
Jun. 30, 2018 | |
Closed Block Disclosure [Abstract] | |
Closed Block | CLOSED BLOCK Summarized financial information for the Company’s Closed Block is as follows: June 30, December 31, (in millions) CLOSED BLOCK LIABILITIES: Future policy benefits, policyholders’ account balances and other $ 6,829 $ 6,958 Policyholder dividend obligation — 19 Other liabilities 272 271 Total Closed Block liabilities 7,101 7,248 ASSETS DESIGNATED TO THE CLOSED BLOCK: Fixed maturities, available for sale, at fair value (amortized cost of $3,768 and $3,923) 3,772 4,070 Mortgage loans on real estate 1,908 1,720 Policy loans 752 781 Cash and other invested assets 216 351 Other assets 182 182 Total assets designated to the Closed Block 6,830 7,104 Excess of Closed Block liabilities over assets designated to the Closed Block 271 144 Amounts included in accumulated other comprehensive income (loss): Net unrealized investment gains (losses), net of policyholder dividend obligation of $0 and $19 14 138 Maximum Future Earnings To Be Recognized From Closed Block Assets and Liabilities $ 285 $ 282 The Company’s Closed Block revenues and expenses follow: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 (in millions) REVENUES: Premiums and other income $ 49 $ 61 $ 100 $ 115 Net investment income (loss) 73 79 146 162 Net investment gains (losses) — (1 ) 1 (16 ) Total revenues 122 139 247 261 BENEFITS AND OTHER DEDUCTIONS: Policyholders’ benefits and dividends 123 133 249 284 Other operating costs and expenses — 1 2 1 Total benefits and other deductions 123 134 251 285 Net revenues (loss) before income taxes (1 ) 5 (4 ) (24 ) Income tax (expense) benefit — (2 ) 1 8 Net Revenues (Losses) $ (1 ) $ 3 $ (3 ) $ (16 ) A reconciliation of the Company’s policyholder dividend obligation follows: Six Months Ended June 30, 2018 2017 (in millions) Balances, beginning of year $ 19 $ 52 Unrealized investment gains (losses), net of DAC (19 ) (5 ) Balances, End of Period $ — $ 47 |
INSURANCE LIABILITIES
INSURANCE LIABILITIES | 6 Months Ended |
Jun. 30, 2018 | |
Insurance [Abstract] | |
Insurance Liabilities | INSURANCE LIABILITIES 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 direct GMDB and GMIB without a n o-lapse guarantee rider (“NLG”) feature liabilities, before reinsurance ceded, reflected in the consolidated balance sheets in Future policy benefits and other policyholders’ liabilities: GMDB GMIB Total (in millions) Balance at January 1, 2018 $ 4,080 $ 4,802 $ 8,882 Paid guarantee benefits (200 ) (65 ) (265 ) Other changes in reserve 244 (36 ) 208 Balance at June 30, 2018 $ 4,124 $ 4,701 $ 8,825 Balance at January 1, 2017 $ 3,165 $ 3,870 $ 7,035 Paid guarantee benefits (189 ) (79 ) (268 ) Other changes in reserve 653 784 1,437 Balance at June 30, 2017 $ 3,629 $ 4,575 $ 8,204 The following table summarizes the ceded GMDB liabilities, reflected in the consolidated balance sheets in Amounts due from reinsurers: Six Months Ended June 30, 2018 2017 (in millions) Balance, beginning of year $ 2,030 $ 1,558 Paid guarantee benefits (64 ) (91 ) Other changes in reserve (1,869 ) 366 Balance, End of Period $ 97 $ 1,833 The liability for the GMxB derivative features liability, the liability for SCS, SIO, MSO and IUL indexed features and the GMIB reinsurance contract asset are considered embedded or freestanding insurance derivatives and are reported at fair value. Summarized in the table below is a summary of the fair value of these liabilities at June 30, 2018 and December 31, 2017 : June 30, December 31, (in millions) GMIBNLG (1) $ 3,419 $ 4,056 SCS, MSO, IUL features (2) 1,891 1,698 GWBL/GMWB (1) 119 130 GIB (1) (41 ) (27 ) GMAB (1) 3 5 Total Embedded derivatives liability (1) $ 5,391 $ 5,862 GMIB reinsurance contract asset (3) $ 1,825 $ 10,488 (1) Reported in future policyholders’ benefits and other policyholders’ liabilities in the consolidated balance sheets. (2) Reported in Policyholders’ account balances in the consolidated balance sheets. (3) Reported in GMIB reinsurance contract asset, at fair value in the consolidated balance sheets. The June 30, 2018 values for direct 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 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: Direct Variable Annuity Contract Values June 30, 2018 Return of Premium Ratchet Roll-Up Combo Total (Dollars in millions) GMDB: Account values invested in: General Account $ 13,947 $ 106 $ 63 $ 190 $ 14,306 Separate Accounts $ 45,892 $ 9,348 $ 3,363 $ 34,610 $ 93,213 Net amount at risk, gross $ 176 $ 88 $ 1,980 $ 16,493 $ 18,737 Net amount at risk, net of amounts reinsured $ 176 $ 84 $ 1,367 $ 16,493 $ 18,120 Average attained age of contract holders 51.3 66.7 73.3 68.6 55.2 Percentage of contract holders over age 70 9.8 % 41.6 % 64.3 % 48.3 % 18.4 % 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 $ 23 $ 280 $ 303 Separate Accounts N/A N/A $ 20,928 $ 39,350 $ 60,278 Net amount at risk, gross N/A N/A $ 843 $ 6,275 $ 7,118 Net amount at risk, net of amounts reinsured N/A N/A $ 264 $ 5,700 $ 5,964 Average attained age of policyholders N/A N/A 70.3 68.6 69.0 Weighted average years remaining until annuitization N/A N/A 1.6 0.6 0.7 Range of contractually specified interest rates N/A N/A 3%-6% 3%-6.5% 3%-6.5% At June 30, 2018 , the Company had reinsured with non-affiliates and affiliates in the aggregate approximately 3.3 % and 0.0 %, 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 16.2 % and 0.0 %, respectively, of its current liability exposure resulting from the GMIB feature. 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 backed by the assets in 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 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. Because variable annuity contracts offer both GMDB and GMIB features, GMDB and GMIB amounts are not mutually exclusive: Investment in Separate Account Investment Options June 30, December 31, 2017 (1) (in millions) GMDB: Equity $ 41,308 $ 41,658 Fixed income 5,316 5,469 Balanced 45,736 46,577 Other 853 968 Total $ 93,213 $ 94,672 GMIB: Equity $ 19,107 $ 19,928 Fixed income 2,977 3,150 Balanced 37,894 38,890 Other 300 318 Total $ 60,278 $ 62,286 (1) Amounts previously reported were as follows in millions: (a) GMDB: Equity $78,069 , Fixed Income $2,234 , Balanced $14,084 , and Other $283 ; (b) GMIB: Equity $50,429 , Fixed Income $1,568 , Balanced $10,165 , and Other $124 . C) Hedging Programs for GMDB, GMIB, GIB and Other Features Beginning in 2003, the Company 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 capital markets. At the present time, this program hedges certain economic risks on products sold from 2001 forward, to the extent such risks are not externally reinsured. At June 30, 2018 , the total account value and net amount at risk of the hedged variable annuity contracts were $ 68,823 million and $ 17,169 million, respectively, with the GMDB feature and $ 57,987 million and $ 7,226 million, respectively, with the GMIB and GIB feature. A hedge program is also used to manage certain capital markets risks associated with the products the Company has assumed that have GMDB and GMIB features. At June 30, 2018, the total account value and net amount at risk of the hedged assumed variable annuity contracts were $8,912 million and $610 million , respectively, with the GMDB feature and $2,594 million and $247 million , respectively, with the GMIB 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 derivative gains (losses) in the period in which they occur, and may contribute to income (loss) volatility. D) Variable and Interest-Sensitive Life Insurance Policies - NLG The NLG 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 NLG remains in effect so long as the policy meets a contractually specified premium funding test and certain other requirements. The following table summarizes the NLG liabilities reflected in the General Account in Future policy benefits and other policyholders’ liabilities, the related reinsurance reserve ceded, reflected in Amounts due from reinsurers and deferred cost of reinsurance, reflected in Other assets in the Consolidated balance sheets: Direct Liability Reinsurance Ceded Net (in millions) Balance at January 1, 2018 $ 686 $ (664 ) $ 22 Paid Guaranteed Benefits (9 ) — (9 ) Other changes in reserves 39 (25 ) 14 Balance at June 30, 2018 $ 716 $ (689 ) $ 27 Balance at January 1, 2017 $ 1,197 $ (609 ) $ 588 Other changes in reserves 122 (23 ) 99 Balance at June 30, 2017 $ 1,319 $ (632 ) $ 687 |
REINSURANCE AGREEMENTS
REINSURANCE AGREEMENTS | 6 Months Ended |
Jun. 30, 2018 | |
Insurance [Abstract] | |
Reinsurance Agreements | REINSURANCE AGREEMENTS Effective February 1, 2018, the Company entered into a coinsurance reinsurance agreement (the “Coinsurance Agreement”) to cede 90% of its single premium deferred annuities (SPDA) products issued between 1978-2001 and its Guaranteed Growth Annuity (GGA) single premium deferred annuity products issued between 2001-2014. As a result of this agreement, the Company transferred securities with a market value of $604 million and cash of $31 million to equal the statutory reserves of approximately $635 million . As the risks transferred by the Company to the reinsurer under the Coinsurance Agreement are not considered insurance risks and therefore do not qualify for reinsurance accounting, the Company applied deposit accounting. Accordingly, the Company recorded the transferred assets of $635 million as a deposit asset recorded in Other assets, net of the ceding commissions paid to the reinsurer. |
FAIR VALUE DISCLOSURES
FAIR VALUE DISCLOSURES | 6 Months Ended |
Jun. 30, 2018 | |
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. At June 30, 2018 and December 31, 2017 , no assets were required to be measured at fair value on a non-recurring basis. Fair value measurements are required on a non-recurring basis for certain assets, including goodwill 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. The Company recognizes transfers between valuation levels at the beginning of the reporting period. Fair Value Measurements at June 30, 2018 Level 1 Level 2 Level 3 Total (in millions) Assets: Investments: Fixed maturities, available-for-sale: Public Corporate $ — $ 17,226 $ 75 $ 17,301 Private Corporate — 5,868 1,077 6,945 U.S. Treasury, government and agency — 13,903 — 13,903 States and political subdivisions — 424 38 462 Foreign governments — 447 — 447 Residential mortgage-backed (1) — 221 — 221 Asset-backed (2) — 79 538 617 Redeemable preferred stock 176 322 — 498 Subtotal 176 38,490 1,728 40,394 Other equity investments 12 — — 12 Trading securities 493 13,407 — 13,900 Other invested assets: Short-term investments — 442 — 442 Assets of consolidated VIEs/VOEs 73 226 29 328 Swaps — 380 — 380 Credit Default Swaps — 23 — 23 Futures 1 — — 1 Options — 2,077 — 2,077 Subtotal 74 3,148 29 3,251 Cash equivalents 4,974 — — 4,974 Segregated securities — 1,289 — 1,289 GMIB reinsurance contract asset — — 1,825 1,825 Separate Accounts’ assets 117,571 2,763 361 120,695 Total Assets $ 123,300 $ 59,097 $ 3,943 $ 186,340 Liabilities GMxB derivative features’ liability $ — $ — $ 3,500 $ 3,500 SCS, SIO, MSO and IUL indexed features’ liability — 1,891 — 1,891 Liabilities of consolidated VIEs/VOEs — 3 — 3 Contingent payment arrangements — — 11 11 Total Liabilities $ — $ 1,894 $ 3,511 $ 5,405 (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, 2017 Level 1 Level 2 Level 3 Total (in millions) Assets: Investments: Fixed maturities, available-for-sale: Public Corporate $ — $ 14,298 $ 47 $ 14,345 Private Corporate — 6,045 1,092 7,137 U.S. Treasury, government and agency — 13,135 — 13,135 States and political subdivisions — 441 40 481 Foreign governments — 409 — 409 Residential mortgage-backed (1) — 251 — 251 Asset-backed (2) — 88 8 96 Redeemable preferred stock 180 324 — 504 Subtotal 180 34,991 1,187 36,358 Other equity investments 13 — 1 14 Trading securities 467 12,161 — 12,628 Other invested assets: Short-term investments — 768 — 768 Assets of consolidated VIEs/VOEs 1,060 215 27 1,302 Swaps — 15 — 15 Credit Default Swaps — 33 — 33 Futures (2 ) — — (2 ) Options — 1,907 — 1,907 Subtotal 1,058 2,938 27 4,023 Cash equivalents 2,360 — — 2,360 Segregated securities — 825 — 825 GMIB reinsurance contract asset — — 10,488 10,488 Separate Accounts’ assets 118,983 2,983 349 122,315 Total Assets $ 123,061 $ 53,898 $ 12,052 $ 189,011 Liabilities: GMxB derivative features’ liability $ — $ — $ 4,164 $ 4,164 SCS, SIO, MSO and IUL indexed features’ liability — 1,698 — 1,698 Liabilities of consolidated VIEs/VOEs 670 22 — 692 Contingent payment arrangements — — 11 11 Total Liabilities $ 670 $ 1,720 $ 4,175 $ 6,565 (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 June 30, 2018 and December 31, 2017 , respectively, the fair value of public fixed maturities is approximately $ 32,518 million and $28,826 million or approximately 17.7 % 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 June 30, 2018 and December 31, 2017 , respectively, the fair value of private fixed maturities is approximately $ 7,876 million and $7,532 million or approximately 4.3 % and 4.2% 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 June 30, 2018 and December 31, 2017 , respectively, the net fair value of freestanding derivative positions is approximately $ 2,481 million and $1,953 million or approximately 66.3 % and 48.5% 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 overnight index swap (“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 June 30, 2018 and December 31, 2017 , respectively, investments classified as Level 1 comprise approximately 67.3 % and 69.2% of assets measured at fair value on a recurring basis and primarily include redeemable preferred stock, trading securities, cash equivalents and Separate Account 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 June 30, 2018 and December 31, 2017 , respectively, investments classified as Level 2 comprise approximately 31.6 % and 29.9% 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 June 30, 2018 and December 31, 2017 , respectively, approximately $ 217 million and $257 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 Company products such as the SCS and EQUI-VEST variable annuity product, and in the MSO fund available in some life contracts offer investment options which permit the contract owner to participate in the performance of an index, ETF or commodity price. These investment options, which depending on the product and on the index selected can currently have 1, 3, 5, or 6 year terms, provide for participation in the performance of specified indices, ETF or commodity price movement 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, ETF 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 data obtained from independent valuation service providers. At June 30, 2018 and December 31, 2017 , respectively, investments classified as Level 3 comprise approximately 1.2 % and 0.9% of assets measured at fair value on a recurring basis and primarily include 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 June 30, 2018 and December 31, 2017 , respectively, were approximately $ 94 million and $97 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 it considers 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 $ 282 million and $8 million of mortgage- and asset-backed securities are classified as Level 3 at June 30, 2018 and December 31, 2017 , respectively. The Company also issues certain benefits on its variable annuity products that are accounted for as derivatives and are also considered Level 3. The GMIBNLG feature allows the policyholder to receive guaranteed minimum lifetime annuity payments based on predetermined annuity purchase rates applied to the contract’s benefit base if and when the contract account value is depleted and the NLG feature is activated. 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 and liabilities which are accounted for as derivative contracts. The GMIB reinsurance contract asset and liabilities’ fair value reflects the present value of reinsurance premiums and recoveries and risk margins over a range of market consistent economic scenarios while GMxB derivative features liability reflects the present value of expected future payments (benefits) less fees, adjusted for risk margins and nonperformance risk, attributable to GMxB derivative features’ liability over a range of market-consistent economic scenarios. The valuations of the GMIB reinsurance contract asset and GMxB derivative 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 GMxB derivative 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 and liabilities to reflect change in the claims-paying ratings of counterparties and the Company an adjustment to the swap curve for non-performance risk to reflect the claims-paying rating of the Company. Equity and fixed income volatilities were modeled to reflect current market volatilities. Due to the unique, long duration of the GMIBNLG feature, adjustments were made to the equity volatilities to remove the illiquidity bias associated with the longer tenors and risk margins were applied to the non-capital markets inputs to the GMIBNLG valuations. After giving consideration to collateral arrangements, the Company reduced the fair value of its GMIB reinsurance contract asset by $ 17 million and $69 million at June 30, 2018 and December 31, 2017 , respectively, to recognize incremental counterparty non-performance risk. Lapse rates are adjusted at the contract level based on a comparison of the actuarially calculated guaranteed values and the current policyholder account value, which include other factors such as considering surrender charges. Generally, lapse rates are assumed to be lower in periods when a surrender charge applies. A dynamic lapse function reduces the base lapse rate when the guaranteed amount is greater than the account value as in the money contracts are less likely to lapse. For valuing the embedded derivative, lapse rates vary throughout the period over which cash flows are projected. 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. As of June 30, 2018 , the Company’s consolidated VIEs/VOEs hold $ 29 million of investments that are classified as Level 3 primarily consist of corporate bonds that are vendor priced with no ratings available, bank loans, non-agency collateralized mortgage obligations and asset-backed securities. In the first six months of 2018 , AFS fixed maturities with fair values of $ 28 million were transferred out of Level 3 and into Level 2 principally due to the availability of trading activity or market observable inputs to measure and validate their fair values. In addition, AFS fixed maturities with fair value of $ 65 million were transferred from Level 2 into the Level 3 classification. These transfers in the aggregate represent approximately 0.6 % of total equity at June 30, 2018 . In the first six months of 2017 , AFS fixed maturities with fair values of $ 6 million were transferred out of Level 3 and into Level 2 principally due to the availability of trading activity or market observable inputs to measure and validate their fair values. In addition, AFS fixed maturities with fair value of $ 13 million were transferred from Level 2 into the Level 3 classification. These transfers in the aggregate represent approximately 0.1 % of total equity at June 30, 2017 . The table below presents a reconciliation for all Level 3 assets and liabilities for the three and six months ended June 30, 2018 and 2017 , respectively: Level 3 Instruments Fair Value Measurements Corporate State and Commercial Asset- (in millions) Balance, April 1, 2018 $ 1,229 $ 39 $ — $ 7 Total gains (losses), realized and unrealized, included in: Income (loss) as: Net investment income (loss) 3 — — — Investment gains (losses), net — — — — Subtotal 3 — — — Other comprehensive income (loss) 6 — — (1 ) Purchases 27 — — 533 Sales (99 ) (1 ) — (1 ) Settlements — — — — Transfers into Level 3 (1) (2 ) — — — Transfers out of Level 3 (1) (12 ) — — — Balance, June 30, 2018 $ 1,152 $ 38 $ — $ 538 Balance, April 1, 2017 $ 1,014 $ 42 $ 324 $ 31 Total gains (losses), realized and unrealized, included in: Income (loss) as: Net investment income (loss) 3 — 1 — Investment gains (losses), net — — (9 ) 15 Subtotal 3 — (8 ) 15 Other comprehensive income (loss) (51 ) — 7 (11 ) Purchases 169 — — — Sales (39 ) — (33 ) (18 ) Transfers into Level 3 (1) 6 — — — Transfers out of Level 3 (1) (34 ) — — (5 ) Balance, June 30, 2017 $ 1,068 $ 42 $ 290 $ 12 Corporate State and Political Sub- divisions Commercial Mortgage- backed Asset- backed (in millions) Balance, January 1, 2018 $ 1,139 $ 40 $ — $ 8 Total gains (losses), realized and unrealized, included in: Income (loss) as: Net investment income (loss) 5 — — — Investment gains (losses), net — — — — Subtotal 5 — — — Other comprehensive income (loss) (14 ) (1 ) — (1 ) Purchases 200 — — 533 Sales (215 ) (1 ) — (2 ) Settlements — — — — Transfers into Level 3 (1) 65 — — — Transfers out of Level 3 (1) (28 ) — — — Balance, June 30, 2018 $ 1,152 $ 38 $ — $ 538 Balance, January 1, 2017 $ 845 $ 42 $ 349 $ 24 Total gains (losses), realized and unrealized, included in: Income (loss) as: Net investment income (loss) 4 — 1 — Investment gains (losses), net — — (20 ) 15 Subtotal 4 — (19 ) 15 Other comprehensive income (loss) (6 ) — 19 (7 ) Purchases 322 — — — Sales (105 ) — (59 ) (19 ) Transfers into Level 3 (1) 13 — — — Transfers out of Level 3 (1) (5 ) — — (1 ) Balance, June 30, 2017 $ 1,068 $ 42 $ 290 $ 12 Redeemable Other (2) GMIB Separate GMxB Derivative Features Liability Contingent (in millions) Balance, April 1, 2018 $ — $ 38 $ 9,673 $ 357 $ (3,804 ) $ (11 ) Total gains (losses), realized and unrealized, included in: Income (loss) as: Net investment income (loss) — — — — — — Investment gains (losses), net — (1 ) — 7 — — Net derivative gains (losses) — — (382 ) — 407 — Subtotal — (1 ) (382 ) 7 407 — Other comprehensive income (loss) — — — — — — Purchases (2) — 2 18 (1 ) (104 ) — Sales (3) — (2 ) (21 ) — 1 — Settlements (4)(5) — — (7,463 ) (2 ) — — Activity related to consolidated VIEs — (3 ) — — — — Transfers into Level 3 (1) — — — — — — Transfers out of Level 3 (1) — (5 ) — — — — Balance, June 30, 2018 $ — $ 29 $ 1,825 $ 361 $ (3,500 ) $ (11 ) Balance, April 1, 2017 $ 1 $ 55 $ 9,797 $ 325 $ (4,906 ) $ (17 ) Total gains (losses), realized and unrealized, included in: Income (loss) as: Net investment income (loss) — — — — — — Investment gains (losses), net — — — 8 — — Net derivative gains (losses) — — 1,426 — 231 — Subtotal — — 1,426 8 231 — Other comprehensive income (loss) — — — — — — Purchases (2) — — 73 2 (80 ) — Sales (3) — — (36 ) (1 ) — — Settlements (4) — — — (1 ) — — Activity related to consolidated VIEs — (7 ) — — — — Transfers into Level 3 (1) — — — — — — Transfers out of Level 3 (1) — — — — — — Balance, June 30, 2017 $ 1 $ 48 $ 11,260 $ 333 $ (4,755 ) $ (17 ) Redeemable Preferred Stock Other Equity Investments (2) GMIB Reinsurance Asset Separate Accounts Assets GMxB Derivative Features Liability Contingent Payment Arrangement (in millions) Balance, January 1, 2018 — 28 10,488 349 (4,164 ) (11 ) Total gains (losses), realized and unrealized, included in: Income (loss) as: Net investment income (loss) — — — — — Investment gains (losses), net — (1 ) — 14 — — Net derivative gains (losses) — — (1,224 ) — 847 — Subtotal — (1 ) (1,224 ) 14 847 — Other comprehensive income (loss) — — — — — — Purchases (2) — 6 72 2 (186 ) — Sales (3) — (2 ) (48 ) (1 ) 3 — Settlements (4)(5) — — (7,463 ) (3 ) — — Activity related to consolidated VIEs — (2 ) — — — — Transfers into Level 3 (1) — 5 — — — — Transfers out of Level 3 (1) — (5 ) — — — — Balance, June 30, 2018 — 29 1,825 361 (3,500 ) (11 ) Balance, January 1, 2017 1 51 10,314 313 (5,319 ) (18 ) Total gains (losses), realized and unrealized, included in: Income (loss) as: Net investment income (loss) — — — 18 — — Investment gains (losses), net — — — — — — Net derivative gains (losses) — — 893 — 721 — Subtotal — — 893 18 721 — Other comprehensive income (loss) — — — — — — Purchases (2) — 4 110 6 (158 ) — Sales (3) — (1 ) (57 ) (2 ) 1 — Settlements (4) — — — (2 ) — 1 Activity related to consolidated VIEs — (7 ) — — — — Transfers into Level 3 (1) — 1 — — — — Transfers out of Level 3 (1) — — — — — — Balance, June 30, 2017 1 48 11,260 333 (4,755 ) (17 ) (1) Transfers into/out of Level 3 classification are reflected at beginning-of-period fair values. (2) For the GMIB reinsurance contract asset, and GMxB derivative features’ liability, represents attributed fee. (3) For the GMIB reinsurance contract asset, represents recoveries from reinsurers and for GMxB derivative features liability represents benefits paid. (4) For contingent payment arrangements, it represents payments under the arrangement. (5) For GMIB Reinsurance Asset, it represents the settlement of the captive reinsurance transaction. The table below details changes in unrealized gains (losses) for the six months ended June 30, 2018 and 2017 by category for Level 3 assets and liabilities still held at June 30, 2018 and 2017 , respectively: Income (Loss) Investment Net Derivative Gains (losses) OCI (in millions) Level 3 Instruments Six months ended June 30, 2018 Held at June 30, 2018: Change in unrealized gains (losses): Fixed maturities, available-for-sale: Corporate $ — $ — $ (7 ) State and political subdivisions — — (1 ) Commercial mortgage-backed — — — Asset-backed — — (1 ) Subtotal $ — $ — $ (9 ) GMIB reinsurance contracts — (1,224 ) — Separate Accounts’ assets (1) 14 — — GMxB derivative features’ liability — 847 — Total $ 14 $ (377 ) $ (9 ) Level 3 Instruments Six months ended June 30, 2017 Held at June 30, 2017: Change in unrealized gains (losses): Fixed maturities, available-for-sale: Corporate $ — $ — $ (45 ) Commercial mortgage-backed — — 5 Asset-backed — — (11 ) Subtotal $ — $ — $ (51 ) GMIB reinsurance contracts — 893 — Separate Accounts’ assets (1) 18 — — GMxB derivative features’ liability — 721 — Total $ 18 $ 1,614 $ (51 ) (1) There is an investment expense that offsets this investment gain (loss). The following tables disclose quantitative information about Level 3 fair value measurements by category for assets and liabilities as of June 30, 2018 and December 31, 2017 , respectively. Quantitative Information about Level 3 Fair Value Measurements June 30, 2018 Fair Valuation Significant Range Weighted Average (in millions) Assets: Investments: Fixed maturities, available-for-sale: Corporate $ 31 Matrix pricing model Spread over the industry-specific benchmark yield curve 75 - 565 bps 188 bps 757 Market com-parable companies EBITDA multiples 4.8x - 33.0x 13.0x Separate Account assets 339 Third party appraisal Capitalization rate 4.5% 1 Discounted cash flow Spread over U.S. Treasury curve 228 bps GMIB reinsurance contract asset 1,825 Discounted cash flow Lapse Rates 1.0% - 6.3% Liabilities: GMIBNLG 3,419 Discounted cash flow Non-performance Risk 1.0% GWBL/GMWB 119 Discounted cash flow Lapse Rates 0.9% - 5.7% GIB (41 ) Discounted cash flow Lapse Rates 0.9% - 5.7% GMAB 3 Discounted cash flow Lapse Rates 0.5% - 11.0% Quantitative Information about Level 3 Fair Value Measurements December 31, 2017 Fair Value Valuation Technique Significant Unobservable Input Range Weighted Average (in millions) Assets: Investments: Fixed maturities, available-for-sale: Corporate $ 53 Matrix pricing model Spread over the industry-specific benchmark yield curve 0 -565 bps 125 bps 789 Market comparable companies EBITDA multiples Discount Rate Cash flow Multiples 5.3x-27.9x 12.9x Separate Account assets 326 Third party appraisal Capitalization rate 4.6% 1 Discounted cash flow Spread over U.S. Treasury curve 243 bps GMIB reinsurance contract asset 10,488 Discounted cash flow Lapse Rates 1.0% - 6.3% Liabilities: GMIBNLG 4,056 Discounted cash flow Non-performance Risk 1.0% GWBL/GMWB 130 Discounted cash flow Lapse Rates 0.9% - 5.7% GIB (27 ) Discounted cash flow Lapse Rates 0.9% - 5.7% GMAB 5 Discounted cash flow Lapse Rates 0.5% - 11.0% Excluded from the tables above at June 30, 2018 and December 31, 2017 , respectively, are approximat |
REVENUE RECOGNITION
REVENUE RECOGNITION | 6 Months Ended |
Jun. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | REVENUE RECOGNITION See “Revenue Recognition” in Note 2 for descriptions of revenues presented in the table below and subject to contracts with customers determined to be in-scope of the new guidance. The table below presents the revenues recognized during the three and six months ended June 30, 2018 and 2017 , disaggregated by category: Three Months Ended Six Months Ended 2018 2017 2017 2018 2017 (in millions) Investment management, advisory and service fees: Base fees $ 722 $ 672 $ 1,448 $ 1,317 Performance-based fees 35 15 41 21 Research services 107 109 221 222 Distribution services 182 171 362 336 Other revenues: Shareholder services 18 19 38 37 Other 6 4 12 8 Total investment management and service fees $ 1,070 $ 990 $ 2,122 $ 1,941 Other income $ 10 $ 9 $ 17 $ 16 |
SHARE-BASED COMPENSATION PROGRA
SHARE-BASED COMPENSATION PROGRAMS | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation Programs | SHARE-BASED COMPENSATION PROGRAMS AXA and Holdings and its subsidiary, AXA Financial, sponsor various share-based compensation plans for eligible employees, financial professionals and non-officer directors of Holdings and its subsidiaries. AB also sponsors its own equity compensation plan for certain of its employees. Compensation costs for the three and six months ended June 30, 2018 and 2017 for share-based payment arrangements as further described herein are as follows: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 (in millions) Performance Shares (1) $ 3.0 $ 9.6 $ 5.6 $ 13.0 Stock Options 1.4 0.7 0.5 0.7 Restricted Unit Awards (2) (5.0 ) 13.6 7.5 21.3 Other Compensation Plans (3) 1.2 — 1.1 — Total Compensation Expenses $ 0.6 $ 23.9 $ 14.7 $ 35.0 (1) Reflects change to performance share retirement rules. Specifically, individuals who retire at any time after the grant date will continue to vest in their 2017 performance shares while individuals who retire prior to March 1, 2019 will forfeit all 2018 performance shares. (2) Reflects a $10.9 million adjustment for awards with graded vesting, service-only conditions from the graded to the straight-line attribution method. (3) Includes Stock Appreciation Rights. Awards Linked to Holdings’ Common Stock As described below, Holdings made various grants of equity awards linked to the value of Holdings’ common stock in the second quarter of 2018. For awards with graded vesting schedules and service-only vesting conditions, including Holdings restricted stock units (“Holdings RSUs”) and other forms of share-based payment awards, the Company applies a straight-line expense attribution policy for the recognition of compensation cost. Estimated and/or actual forfeitures with respect to the 2018 grants were considered immaterial in the recognition of compensation cost for the second quarter of 2018. Holdings adopted the AXA Equitable Holdings, Inc. 2018 Omnibus Incentive Plan (the “Omnibus Plan”) on April 25, 2018. All grants discussed in this section were made under this Omnibus Plan and will be settled in shares of Holdings’ common stock. As of June 30, 2018, the common stock reserved and available for issuance under the Omnibus Plan was 5.9 million shares. Restricted Stock Units In May 2018, Holdings made several grants of Holdings RSUs. The market price of a Holdings’ share is used as the basis for the fair value measure of a Holdings RSU. For purposes of determining compensation cost for stock-settled Holdings RSUs, fair value is fixed at the grant date until settlement, absent modification to the terms of the award. If Holdings pays any ordinary dividend in cash, all outstanding Holdings RSUs will accrue dividend equivalents in the form of additional Holdings RSUs to be settled or forfeited consistent with the terms of the related award. Transaction Incentive Awards On May 9, 2018, coincident with the IPO, Holdings granted one-time “Transaction Incentive Awards” to executive officers and certain other employees in the form of 0.6 million Holdings RSUs. Fifty percent of the Holdings RSUs will vest based on service over a two year period from the IPO date (the “Service Units”), and fifty percent will vest based on service and a market condition (the “Performance Units”). The market condition is based on share price growth of at least 130% or 150% within a two or five year period, respectively. If the market condition is not achieved, 50% of the Performance Units may still vest based on five years of continued service and the remaining Performance Units will be forfeited. The $ 6.3 million aggregate grant-date fair value of the 0.3 million Service Units was measured at the $ 20 IPO price of a Holdings’ share and will be charged to compensation expense over the stated requisite service periods. The grant-date fair value of half of the Performance Units, or 0.2 million Holdings RSUs, was also measured at the $ 20 IPO price for a Holdings’ share as employees are still able to vest in these awards even if the share price growth targets are not achieved. The resulting $ 3.2 million for these awards will be charged to compensation expense over the five-year requisite service period. The grant-date fair value of $ 16.47 was used to value the remaining half of the Performance Units that are subject to risk of forfeiture for non-achievement of the Holdings’ share price conditions. The grant date fair value was measured using a Monte Carlo simulation from which a five-year requisite service period was derived, representing the median of the distribution of stock-price paths on which the market condition is satisfied, over which the total $ 2.6 million compensation expense will be recognized. In the second quarter of 2018, the Company recognized compensation expense associated with the Transaction Incentive Awards of approximately $ 0.8 million . Employee Awards Also on May 9, 2018, Holdings made an employee grant of 0.2 million Holdings RSUs, or 50 restricted stock units to each eligible individual, that cliff vest on November 9, 2018. The grant-date fair value of the award was measured using the $ 20 IPO price for a Holdings’ share and the resulting $ 4.8 million will be recognized as compensation expense over the six-month service period. In the second quarter of 2018, the Company recognized expense associated with the employee award of approximately $ 1.4 million . 2018 Annual Awards On May 17, 2018, Holdings granted 0.8 million Holdings RSUs to employees that vest ratably in equal annual installments over a three-year period on each of the first three anniversaries of March 1, 2018. The fair value of the award was measured using the $ 21.68 closing price of the Holdings’ share on the grant date, and the resulting $ 17.8 million will be recognized as compensation expense over the shorter of the vesting term or the period up to the date at which the participant becomes retirement eligible but not prior to March 1, 2019. In the second quarter of 2018, the Company recognized expense associated with these awards of approximately $ 1.3 million . Performance Shares Also on May 17, 2018, Holdings approved a grant of 0.4 million unearned Performance Shares to employees, subject to performance conditions and a cliff-vesting term ending March 1, 2021. If Holdings pays any ordinary dividend, outstanding Performance Shares will accrue dividend equivalents in the form of additional Performance Shares to be settled or forfeited consistent with the terms of the related award. The Performance Shares consist of two distinct tranches; one based on Holdings’ return-on-equity targets (the “ROE Performance Shares”) and the other based on Holdings’ relative total shareholder return targets (the “TSR Performance Shares”), each comprising approximately one-half of the award. Participants may receive from 0% to 200% of unearned Performance Shares granted. The grant-date fair value of the ROE Performance Shares will be established once the 2019 and 2020 Non-GAAP ROE targets are determined and approved. The grant-date fair value of the TSR Performance Shares was measured at $ 23.17 using a Monte Carlo approach. Under the Monte Carlo approach, stock returns were simulated for Holdings and the selected peer companies to estimate the payout percentages established by the conditions of the award. The resulting $ 4.0 million aggregate grant-date fair value of the unearned TSR Performance Shares will be recognized as compensation expense over the shorter of the cliff-vesting period or the period up to the date at which the participant becomes retirement eligible but not prior to March 1, 2019. In the second quarter of 2018, the Company recognized expense associated with the TSR Performance Share awards of approximately $ 0.1 million . Stock Options On June 11, 2018, Holdings granted 0.9 million stock options to employees. These options expire on March 1, 2028 and have a three-year graded vesting schedule, with one-third vesting on each of the three anniversaries of March 1, 2018. The exercise price for the options is $ 21.34 , which was the closing price of a Holdings’ share on the grant date. The weighted average grant date fair value per option was estimated at $ 4.61 using a Black-Scholes options pricing model. Key assumptions used in the valuation included expected volatility of 25.4% based on historical selected peer data, a weighted average expected term of 5.7 years as determined by the simplified method, an expected dividend yield of 2.44% based on Holdings’ expected annualized dividend, and a risk-free interest rate of 2.83% . The total fair value of these options of approximately $ 4.0 million will be charged to expense over the shorter of the vesting period or the period up to the date at which the participant becomes retirement eligible but not prior to March 1, 2019. In the second quarter of 2018, the Company recognized expense associated with the June 11, 2018 option grant of approximately $ 0.2 million . Director Awards On May 17, 2018, Holdings awarded 0.03 million unrestricted Holdings’ shares to non-office, directors of Holdings, AXA Equitable Life, and MLOA under the Omnibus Plan. The fair value of these awards was measured using the $ 21.68 closing price of Holdings’ shares on the grant date. As these awards were immediately vested, their aggregate fair value of $ 0.6 million was recognized as compensation expense in the second quarter of 2018. Equity Awards Linked to AXA Ordinary Shares Grants On February 15, 2018, AXA Financial granted restricted AXA ordinary shares to non-officer directors of AXA Financial, AXA Equitable Life, and MLOA with a three year vesting period under the Equity Plan for Directors. Settlement /Payouts On March 26, 2018, share distributions totaling $ 20 million were made to active and former AXA Equitable employees in settlement of 0.8 million performance shares earned under the terms of the AXA Performance Share Plan 2014. AB Long-term Incentive Compensation Plans During the three and six months ended June 30, 2018, respectively, AB purchased 1.2 million and 1.2 million units, representing assignments of beneficial ownership of limited partnership interests in AB Holding (“AB Holding Units”), for $33 million and $35 million , respectively (on a trade date basis). These amounts reflect open-market purchases of 1.2 million AB Holding Units for $33 million during the three months ended June 30, 2018 with the remainder relating to purchases of AB Holding Units from employees to allow them to fulfill statutory tax withholding requirements at the time of delivery of long-term incentive compensation awards. During the three and six months ended June 30, 2017, AB purchased 4.3 million and 5.7 million AB Holding Units for $97 million and $128 million , respectively (on a trade date basis). These amounts reflect open-market purchases of 3.7 million and 4.9 million AB Holding Units for $82 million and $110 million , respectively, with the remainder relating to purchases of AB Holding Units from employees to allow them to fulfill statutory tax withholding requirements at the time of delivery of long-term incentive compensation awards. During the six months ended June 30, 2018 and 2017, AB granted to employees and eligible Directors 2.4 million and 2.0 million restricted AB Holding Unit awards, respectively. AB used AB Holding Units repurchased during the periods and newly issued AB Holding Units to fund these awards. During the six months ended June 30, 2018 and 2017, AB Holding issued 0.5 million and 0.5 million AB Holding Units, respectively, upon exercise of options to buy AB Holding Units. AB Holding used the proceeds of $ 8 million and $9 million , respectively, received as payment in cash for the exercise price to purchase the equivalent number of newly-issued AB Units. |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Income tax expense for the six months ended June 30, 2018 and 2017 have been computed using an estimated annual effective tax rate (“ETR”) , with discrete items recognized in the period in which they occur. The estimated ETR is revised, as necessary, at the end of successive interim reporting period s . In the second quarter of 2017, the Company recognized a tax benefit of $221 million related to the conclusion of an Internal Revenue Service (“IRS”) audit for tax years 2008 and 2009. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 6 Months Ended |
Jun. 30, 2018 | |
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 Net income (loss). The balances as of June 30, 2018 and 2017 follow: June 30, 2018 2017 (in millions) Unrealized gains (losses) on investments $ (435 ) $ 440 Foreign currency translation adjustments (48 ) (63 ) Defined benefit pension plans (56 ) (45 ) Total accumulated other comprehensive income (loss) (539 ) 332 Less: Accumulated other comprehensive (income) loss attributable to noncontrolling interest 75 99 Accumulated other comprehensive income (loss) attributable to AXA Equitable $ (464 ) $ 431 The components of OCI, net of taxes for the three and six months ended June 30, 2018 and 2017 follow: Three Months Ended Six Months Ended 2018 2017 2018 2017 (in millions) Foreign currency translation adjustments: Foreign currency translation gains (losses) arising during the period $ (8 ) $ (21 ) $ (12 ) $ 14 (Gains) losses reclassified into net income (loss) during the period — — — — Foreign currency translation adjustment (8 ) (21 ) (12 ) 14 Net unrealized gains (losses) on investments: Net unrealized gains (losses) arising during the period (347 ) 312 (1,332 ) 452 (Gains) losses reclassified into net income (loss) during the period (1) 3 21 (67 ) (2 ) Net unrealized gains (losses) on investments (344 ) 333 (1,399 ) 450 Adjustments for policyholders’ liabilities, DAC, insurance liability loss recognition and other 33 (39 ) 347 (64 ) Change in unrealized gains (losses), net of adjustments (net of deferred income tax expense (benefit) of $(83), $158, $(280) and $208) (311 ) 294 (1,052 ) 386 Change in defined benefit plans: Less: reclassification adjustments to net income (loss) for: Net gain (loss) arising during the period (1 ) 1 (5 ) 1 Amortization of net actuarial (gains) losses included in: Amortization of net prior service cost included in net periodic cost — — — — Change in defined benefit plans (net of deferred income tax expense (benefit) of $0, $1, $(1) and $1) (1 ) 1 (5 ) 1 Total other comprehensive income (loss), net of income taxes (320 ) 274 (1,069 ) 401 Less: Other comprehensive (income) loss attributable to noncontrolling interest 14 20 7 13 Other comprehensive income (loss) attributable to AXA Equitable $ (306 ) $ 294 $ (1,062 ) $ 414 (1) See “Reclassification adjustments” in Note 3 . Reclassification amounts presented net of income tax expense (benefit) of $ 1 million, $ 11 million, $ (18) million and $ (1) million , for the three and six months ended June 30, 2018 and 2017 , respectively. Investment gains and losses reclassified from AOCI to net income (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 income (loss). Amounts reclassified from AOCI to net income (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 income (loss). Amounts presented in the table above are net of tax. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended |
Jun. 30, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS Cost sharing and service agreements. In second quarter of 2018, AXA Equitable entered into a general services agreement with Holdings whereby AXA Equitable will benefit from the services received by Holdings from AXA and certain of its subsidiaries for a limited period following the Holdings IPO under a transition services agreement. The general services agreement with Holdings replaces existing cost-sharing and general service agreements with various AXA subsidiaries. AXA Equitable continues to provide services to Holdings and various AXA subsidiaries under a separate existing general services agreement with Holdings. Insurance Related Transactions Prior to April 2018, the Company ceded to AXA RE Arizona, an indirect, wholly owned subsidiary of Holdings, a (i) 100% quota share of all liabilities for variable annuities with GMxB riders issued on or after January 1, 2006 and in-force on September 30, 2008 (the “GMxB Business”), (ii) 100% quota share of all liabilities for variable annuities with GMIB riders issued on or after May 1, 1999 through August 31, 2005 in excess of the liability assumed by two unaffiliated reinsurers, which are subject to certain maximum amounts or limitations on aggregate claims, and (iii) 90% quota share of level premium term insurance issued by AXA Equitable on or after March 1, 2003 through December 31, 2008 and lapse protection riders under certain series of universal life insurance policies issued by AXA Equitable on or after June 1, 2003 through June 30, 2007. On April 12, 2018, the Company completed the unwind of the reinsurance previously provided to the Company by AXA RE Arizona. Accordingly, all of the business previously ceded to AXA RE Arizona, with the exception of the GMxB Business, was novated to EQ AZ Life Re Company (“EQ AZ Life RE”), a newly formed captive insurance company organized under the laws of Arizona, which is an indirect wholly owned subsidiary of Holdings. Following the novation of business to EQ AZ Life Re, AXA RE Arizona was merged with and into AXA Equitable. Following AXA RE Arizona’s merger with and into AXA Equitable, the GMxB Business is not subject to any new internal or third-party reinsurance arrangements, though in the future AXA Equitable may reinsure the GMxB Business with third parties. AXA RE Arizona novated the Life Business from AXA RE Arizona to EQ AZ as part of the GMxB Unwind. As a result, EQ AZ reinsures a 90 % quota share of level premium term insurance issued by AXA Equitable on or after March 1, 2003 through December 31, 2008 and lapse protection riders under UL insurance policies issued by AXA Equitable on or after June 1, 2003 through June 30, 2007 and the Excess Risks. The GMxB Unwind was considered a pre-existing relationship required to be effectively settled at fair value. The loss relating to this relationship resulted from the settlement of the reinsurance contracts at fair value and the write-off of previously recorded assets and liabilities related to this relationship recorded in the Company’s historical accounts. The pre-tax loss recognized in the second quarter of 2018 was $ 2,628 million ( $2,076 million net of tax). The Company wrote-off a $1.8 billion Deferred cost of reinsurance asset which was previously reported in Other assets. Additionally, the remaining portion of the loss was determining by calculating the difference between the fair value of the assets received compared to the fair value of the assets and liabilities already recorded within the Company's consolidated financial statements. The Company's primary assets previously recorded were reinsurance recoverables, including the reinsurance recoverable associated with GMDB business. There was an approximate $400 million difference between the fair value of the GMDB recoverable compared to its carrying value which is accounted for under ASC 944. The assets received and the assets removed were as follows: As of April 12, 2018 (in millions) Assets Received Assets Removed Assets at fair value: Fixed income securities $ 7,442 Money Market funds 2 Accrued interest 43 Derivatives 282 Cash 1,098 Total $ 8,867 Deferred cost of reinsurance asset $ 1,839 GMDB ceded reserves 2,317 GMIB reinsurance contract asset 7,463 Payable to AXA RE Arizona 273 Total $ 11,892 Significant non-cash transactions involved in the unwind of the reinsurance previously provided to the Company by AXA RE Arizona included: (a) the increase in total investments includes non-cash activities of $7,769 million for assets received related to the recapture transaction, (b) cancellation of the $300 million surplus note between the Company and AXA RE Arizona, and (c) settlement of the intercompany receivables/payables to AXA RE Arizona of $273 million . In addition, upon merging the remaining assets of AXA Re Arizona into AXA Equitable, $1.2 billion of deferred tax assets were recorded on the balance sheet through an adjustment to Capital in excess of par value. The reinsurance arrangements with EQ AZ provide important capital management benefits to AXA Equitable. At June 30, 2018, the Company’s GMIB reinsurance contract asset with EQ AZ had carrying value of $189 million , and is reported in GMIB reinsurance contract asset, at fair value in the Consolidated Balance Sheets. Ceded premiums and policy fee income for June 30, 2018 totaled approximately $24 million , Ceded claims paid for June 30, 2018, were $14 million . AXA Equitable receives statutory reserve credits for reinsurance treaties with EQ AZ to the extent that EQ AZ holds assets in an irrevocable trust (the “Trust”). At June 30, 2018, EQ AZ held assets of $1,085 million in the Trust, and had letters of credit of $2,430 million , which are guaranteed by Holdings. Under the reinsurance transactions, EQ AZ is permitted to transfer assets from the Trust under certain circumstances. The level of statutory reserves held by EQ AZ fluctuate based on market movements, mortality experience and policyholder behavior. Increasing reserve requirements may necessitate that additional assets be placed in trust and/or securing additional letters of credit, which could adversely impact EQ AZ’s liquidity. Settlement of Borrowings Between the Company and Affiliates On April 20, 2018, the Company transferred cash in exchange for an $ 800 million note from Holdings with an interest rate of 3.69 % and maturing on April 20, 2021. On April 20, 2018, AXA pre-paid the remaining $ 650 million of a $ 700 million note and $ 50 million of a $ 500 million term loan and related accrued interest from the Company. |
COMMITMENT AND CONTINGENT LIABI
COMMITMENT AND CONTINGENT LIABILITIES | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | COMMITMENTS AND CONTINGENT LIABILITIES Litigation Litigation, regulatory and other loss contingencies arise in the ordinary course of the Company’s activities as a diversified financial services firm. The Company is a defendant in a number of litigation matters arising from the conduct of its business. In some of these matters, claimants seek to recover very large or indeterminate amounts, including compensatory, punitive, treble and exemplary damages. Modern pleading practice in the U.S. permits considerable variation in the assertion of monetary damages and other relief. Claimants are not always required to specify the monetary damages they seek or they may be required only to state an amount sufficient to meet a court’s jurisdictional requirements. Moreover, some jurisdictions allow claimants to allege monetary damages that far exceed any reasonably possible verdict. The variability in pleading requirements and past experience demonstrates that the monetary and other relief that may be requested in a lawsuit or claim often bears little relevance to the merits or potential value of a claim. Litigation against the Company includes a variety of claims including, 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. As with other financial services companies, the Company periodically receives informal and formal requests for information from various state and U.S. Federal governmental agencies and self-regulatory organizations in connection with inquiries and investigations of the products and practices of the Company or the financial services industry. It is the practice of the Company to cooperate fully in these matters. The outcome of a litigation or regulatory matter is difficult to predict and the amount or range of potential losses associated with these or other loss contingencies requires significant management judgment. It is not possible to predict the ultimate outcome or to provide reasonably possible losses or ranges of losses for all pending regulatory matters, litigation and other loss contingencies. While it is possible that an adverse outcome in certain cases could have a material adverse effect upon the Company’s financial position, based on information currently known, management believes that neither the outcome of pending litigation and regulatory matters, nor potential liabilities associated with other loss contingencies, are likely to have such an effect. However, given the large and indeterminate amounts sought in certain litigation and the inherent unpredictability of all such matters, it is possible that an adverse outcome in certain of the Company’s litigation or regulatory matters, or liabilities arising from other loss contingencies, could, from time to time, have a material adverse effect upon the Company’s results of operations or cash flows in a particular quarterly or annual period. For some matters, the Company is able to estimate a possible range of loss. For such matters in which a loss is probable, an accrual has been made. For matters where the Company, however, believes a loss is reasonably possible, but not probable, no accrual is required. For matters for which an accrual has been made, but there remains a reasonably possible range of loss in excess of the amounts accrued or for matters where no accrual is required, the Company develops an estimate of the unaccrued amounts of the reasonably possible range of losses. As of June 30, 2018 , the Company estimates the aggregate range of reasonably possible losses, in excess of any amounts accrued for these matters as of such date, to be up to approximately $ 90 million. For other matters, the Company is currently not able to estimate the reasonably possible loss or range of loss. The Company is often unable to estimate the possible loss or range of loss until developments in such matters have provided sufficient information to support an assessment of the range of possible loss, such as quantification of a damage demand from plaintiffs, discovery from plaintiffs and other parties, investigation of factual allegations, rulings by a court on motions or appeals, analysis by experts and the progress of settlement discussions. On a quarterly and annual basis, the Company reviews relevant information with respect to litigation and regulatory contingencies and updates the Company’s accruals, disclosures and reasonably possible losses or ranges of loss based on such reviews. In July 2011, a derivative action was filed in the United States District Court for the District of New Jersey entitled Mary Ann Sivolella v. AXA Equitable Life Insurance Company and AXA Equitable Funds Management Group, LLC (“Sivolella Litigation”) and a substantially similar action was filed in January 2013 entitled Sanford et al. v. AXA Equitable FMG (“Sanford Litigation”). These lawsuits were filed on behalf of a total of twelve mutual funds and, among other things, seek recovery under (i) 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 and administrative services and (ii) a variety of other theories including unjust enrichment. The Sivolella Litigation and the Sanford Litigation were consolidated and a 25-day trial commenced in January 2016 and concluded in February 2016. In August 2016, the District 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) of the Investment Company Act or show any actual damages. In September 2016, the plaintiffs filed a motion to amend the District Court’s trial opinion and to amend or make new findings of fact and/or conclusions of law. In December 2016, the District Court issued an order denying the motion to amend and plaintiffs filed a notice to appeal the District Court’s decision to the U.S. Court of Appeals for the Third Circuit. In July 2018, the U.S. Court of Appeals for the Third Circuit affirmed the District Court’s decision. In April 2014, a lawsuit was filed in the United States District Court for the Southern District of New York, now entitled Ross v. 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 July 2015, the Court granted AXA Equitable’s motion to dismiss for lack of subject matter jurisdiction. In April 2015, a second action in the United States District Court for the Southern District of New York was filed 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 as the Ross action. In October 2015, the Court, on its own, dismissed the Yarbrough litigation on similar grounds as the Ross litigation. In December 2015, the Second Circuit denied the plaintiffs motion to consolidate their appeals but ordered that the appeals be heard together before a single panel of judges. In February 2017, the Second Circuit affirmed the decisions of the district court in favor of AXA Equitable, and that decision is now final because the plaintiffs failed to file a further appeal. In November 2014, a lawsuit was filed in the Superior Court of New Jersey, Camden County entitled Arlene Shuster, on behalf of herself and all others similarly situated v. AXA Equitable Life Insurance Company. 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 Equitable’s Separate Accounts, which were subsequently subjected to the volatility management strategy and who suffered injury as a result thereof. The action asserts that AXA Equitable breached its variable life insurance contracts by implementing the volatility management strategy. In February 2016, the Court dismissed the complaint. In March 2016, the plaintiff filed a notice of appeal. In April 2018, the Superior Court of New Jersey Appellate Division affirmed the trial court’s decision. In August 2015, another lawsuit was filed in Connecticut Superior Court, Judicial Division of New Haven entitled Richard T. O’Donnell, on behalf of himself and all others similarly situated v. AXA Equitable Life Insurance Company. This lawsuit is a putative class action on behalf of all persons who purchased variable annuities from AXA Equitable, which were subsequently subjected to the volatility management strategy and who suffered injury as a result thereof. Plaintiff asserts a claim for breach of contract alleging that AXA Equitable implemented the volatility management strategy in violation of applicable law. In November 2015, the Connecticut Federal District Court transferred this action to the United States District Court for the Southern District of New York. In March 2017, the Southern District of New York granted AXA Equitable’s motion to dismiss the complaint. In April 2017, the plaintiff filed a notice of appeal. In April 2018, the United States Court of Appeals for the Second Circuit reversed the trial court’s decision with instructions to remand the case to Connecticut state court. In June 2018, the Second Circuit granted AXA Equitable’s motion to stay issuance of the mandate pending the filing and disposition of its petition for writ of certiorari. We are vigorously defending these matters. In February 2016, a lawsuit was filed in the United States District Court for the Southern District of New York entitled Brach Family Foundation, Inc. v. AXA Equitable Life Insurance Company. This lawsuit is a putative class action brought on behalf of all owners of universal life (“UL”) policies subject to AXA Equitable’s COI increase. In early 2016, AXA Equitable raised COI rates for certain UL policies issued between 2004 and 2007, which had both issue ages 70 and above and a current face value amount of $ 1 million and above. In March 2018, plaintiff amended its complaint to add two new plaintiffs, including the individual Malcolm Currie. The current complaint alleges the following claims: breach of contract; misrepresentations by AXA Equitable in violation of Section 4226 of the New York Insurance Law; violations of New York General Business Law Section 349; violations of the California Unfair Competition Law, and the California Elder Abuse Statute. Plaintiffs seek (a) compensatory damages, costs, and, pre- and post-judgment interest, (b) with respect to their claim concerning Section 4226, a penalty in the amount of premiums paid by the plaintiffs and the putative class, and (c) injunctive relief and attorneys’ fees in connection with their statutory claims. Seven individual actions challenging the COI increase are also pending against AXA Equitable in U.S. Federal or state courts. They contain similar allegations as those in Brach as well as additional allegations for violations of various states’ consumer protection statutes and common law fraud. Pursuant to an October 2017 order, the putative class action and the four individual U.S. Federal actions are consolidated for the purposes of coordinating pre-trial activities. We are in various stages of motion practice, and are vigorously defending each of these matters. Restructuring The restructuring costs and liabilities associated with the Company’s initiatives were as follows: Six Months Ended June 30, Year Ended December 31, 2018 2017 (in millions) Severance Balance, beginning of year $ 23 $ 22 Additions 6 17 Cash payments (4 ) (14 ) Other reductions — (2 ) Balance, end of Year $ 25 $ 23 Six Months Ended June 30, Year Ended December 31, 2018 2017 (in millions) Leases Balance, beginning of year $ 165 $ 170 Expense incurred — 29 Deferred rent 13 10 Payments made (32 ) (48 ) Interest accretion 7 4 Balance, end of year $ 153 $ 165 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 issues short-term funding agreements to the FHLBNY and uses the funds for asset liability and cash management purposes. AXA Equitable issues long-term funding agreements to the FHLBNY and uses the funds for 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. Outstanding balance at end of period Maturity of Outstanding balance Issued during the period Repaid during the period June 30, 2018: (in millions) Short-term FHLBNY funding agreements $ 500 less than one month $ 3,000 $ 3,000 Long-term FHLBNY funding agreements 1,526 less than 4 years — — 193 Less than 5 years — — 781 greater than five years — — Total long-term funding agreements 2,500 — — Total FHLBNY funding agreements at June 30, 2018 $ 3,000 $ 3,000 $ 3,000 December 31, 2017: Short-term FHLBNY funding agreements $ 500 Less than one month $ 6,000 $ 6,000 Long-term FHLBNY funding agreements 1,244 Less than 4 years 324 — 377 Less than 5 years 303 — 879 Greater than five years 135 — Total long-term funding agreements 2,500 762 — Total FHLBNY funding agreements at December 31, 2017 $ 3,000 $ 6,762 $ 6,000 Other Commitments AXA Equitable had approximately $ 18 million of undrawn letters of credit issued in favor of third party beneficiaries primarily, as well as $ 784 million (including $ 244 million with affiliates) and $ 599 million of commitments under equity financing arrangements to certain limited partnership and existing mortgage loan agreements, respectively, at June 30, 2018 . 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 for its obligations under these plans and would recognize such liability in the event AXA Financial does not perform under the terms of the agreements. |
BUSINESS SEGMENT INFORMATION
BUSINESS SEGMENT INFORMATION | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Business Segment Information | BUSINESS SEGMENT INFORMATION The Company has four reportable segments: Individual Retirement, Group Retirement, Investment Management and Research and Protection Solutions. The Company changed its segment presentation in the fourth quarter 2017. The segment disclosures are based on the intention to provide the users of the financial statements with a view of the business from the Company’s perspective. As a result, the Company determined that it is more useful for a user of the financial statements to assess the historical performance on the basis which management currently evaluates the business. The reportable segments are based on the nature of the business activities. These segments reflect the manner by which the Company’s chief operating decision maker views and manages the business. A brief description of these segments follows: • The Individual Retirement segment offers a diverse suite of variable annuity products which are primarily sold to affluent and high net worth individuals saving for retirement or seeking retirement income. • The Group Retirement segment offers tax-deferred investment and retirement plans to be sponsored by educational entities, municipalities and not-for-profit entities as well as small and medium-sized businesses. • The Investment Management and Research segment provides diversified investment management, research and related solutions globally to a broad range of clients through three main client channels- Institutional, Retail and Private Wealth Management-and distributes its institutional research products and solutions through Bernstein Research Services. • The Protection Solutions segment includes our life insurance and group employee benefits businesses. Our life insurance business offers a variety of variable universal life, universal life and term life products to help affluent and high net worth individuals, as well as small and medium-sized business owners, with their wealth protection, wealth transfer and corporate needs. Our group employee benefits business offers a suite of dental, vision, life, and short- and long-term disability and other insurance products to small and medium-size businesses across the United States. Measurement Operating earnings (loss) is the financial measure which primarily focuses on the Company’s segments’ results of operations as well as the underlying profitability of the Company’s core business. By excluding items that can be distortive and unpredictable such as investment gains (losses) and investment income (loss) from derivative instruments, the Company believes operating earnings (loss) by segment enhances the understanding of the Company’s underlying drivers of profitability and trends in the Company’s segments. In the second quarter of 2018, the Company revised its Operating earnings definition as it relates to the treatment of certain elements of the profitability of its variable annuity products with indexed-linked features to align to the treatment of its variable annuity products with GMxB features. In addition, adjustments for variable annuity products with index-linked features previously included within Other adjustments in the calculation of Non-GAAP Operating Earnings are now included with the adjustments for variable annuity products with GMxB features in the broader adjustment category, Variable annuity product features. Operating earnings is calculated by adjusting each segment’s Net income (loss) attributable to AXA Equitable for the following items: • Items related to Variable annuity product features which include certain changes in the fair value of the derivatives and other securities we use to hedge these features, the effect of benefit ratio unlock adjustments and changes in the fair value of the embedded derivatives reflected within Variable annuity products’ net derivative results; • Investment (gains) losses, which includes other-than-temporary impairments of securities, sales or disposals of securities/investments, realized capital gains/losses and valuation allowances; • Loss on the recapture of GMxB business previously ceded to AXA Arizona; • Net actuarial (gains) losses, which includes actuarial gains and losses as a result of differences between actual and expected experience on pension plan assets or projected benefit obligation during a given period related to pension, other postretirement benefit obligations and the one-time impact of the settlement of the defined benefit obligation; • Other adjustments, which includes restructuring costs related to severance, lease write-offs related to non-recurring restructuring activities and separation costs; and • Income tax expense (benefit) related to the above items and non-recurring tax items which includes the effect of uncertain tax positions for a given audit period and the Tax Reform Act. Revenues derived from any customer did not exceed 10% of revenues for the three and six months ended June 30, 2018 and 2017 . The table below presents operating earnings (loss) by segment and Corporate and Other and a reconciliation to Net income (loss) attributable to AXA Equitable for the three and six months ended June 30, 2018 and 2017 , respectively: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 (in millions) Net income (loss) attributable to AXA Equitable (2,114 ) 1,500 (2,401 ) 1,328 Adjustments related to: Variable annuity product features (1) 516 (1,258 ) 1,252 (785 ) Investment (gains) losses 5 (10 ) (82 ) 1 Loss on the recapture of GMxB business previously ceded to AXA Arizona 2,627 — 2,627 — Net actuarial (gains) losses related to pension and other postretirement benefit obligations 20 21 113 48 Other adjustments 47 22 107 6 Income tax expense (benefit) related to above adjustments (671 ) 444 (832 ) 259 Non-recurring tax items 15 (222 ) 22 (218 ) Non-GAAP Operating Earnings $ 445 $ 497 $ 806 $ 639 Operating earnings (loss) by segment: Individual Retirement $ 399 $ 473 $ 695 $ 610 Group Retirement 49 64 134 113 Investment Management and Research 53 53 104 65 Protection Solutions (1 ) (11 ) (13 ) (39 ) Corporate and Other (1) (55 ) (82 ) (114 ) (110 ) Total $ 445 $ 497 $ 806 $ 639 (1) Includes interest expense of $11 million , $22 million , $6 million , and $11 million , for the three and six months ended June 30, 2018 and 2017 , respectively. Segment revenues are a measure of the Company’s revenue by segment as adjusted to exclude certain items. The following table reconciles segment revenues to Total revenues by excluding the following items: • Items related to Variable annuity product features, which include certain changes in the fair value of the derivatives and other securities we use to hedge these features and changes in the fair value of the embedded derivatives reflected within the net derivative results of Variable annuity product features; • Investment gains (losses), which include other-than-temporary impairments of securities, sales or disposals of securities/investments, realized capital gains/losses, and valuation allowances; and • Other adjustments, which includes the impact of adoption of revenue recognition standard (ASC 606). The table below presents Segment revenues for the three and six months ended June 30, 2018 and 2017 . Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 (in millions) Segment revenues: Individual Retirement (1) $ 1,053 $ 955 $ 1,690 $ 1,843 Group Retirement (1) 246 203 486 438 Investment Management and Research (2) 843 773 1,752 1,515 Protection Solutions (1) 620 595 1,265 1,229 Corporate and Other (1) 198 232 395 469 Adjustments related to: Variable annuity product features (510 ) 1,759 (1,237 ) 1,287 Investment gains (losses) (5 ) 10 82 (1 ) Other adjustments to segment revenues (6 ) 21 (46 ) 43 Total revenues $ 2,439 $ 4,548 $ 4,387 $ 6,823 (1) Includes investment expenses charged by AB of approximately $16 million , $32 million , $13 million and $24 million for the three and six months ended June 30, 2018 and 2017 , respectively, for services provided to the Company. (2) Inter-segment investment management and other fees of approximately $23 million , $46 million , $18 million and $36 million for the three and six months ended June 30, 2018 and 2017 , respectively, are included in total revenues of the Investment Management and Research segment. The table below presents Total assets by segment as of June 30, 2018 and December 31, 2017 : June 30, December 31, (in millions) Total assets by segment: Individual Retirement $ 104,958 $ 120,612 Group Retirement 43,877 40,472 Investment Management and Research 9,182 10,079 Protection Solutions 38,319 34,328 Corporate and Other 22,970 20,494 Total assets $ 219,306 $ 225,985 |
REVISION OF PRIOR PERIOD FINANC
REVISION OF PRIOR PERIOD FINANCIAL STATEMENTS (Notes) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
Revision of Prior Period Financial Statements | REVISION OF PRIOR PERIOD FINANCIAL STATEMENTS During the preparation of the second quarter 2018 financial statements, management identified errors in its previously issued financial statements related to: (a) a misclassification between interest credited and net derivative gains/losses, (b) an error in an actuarial model used to determine the deferred acquisition cost asset and related amortization for a specific group of insurance products issued by the Company, and (c) the understatement of a charge from Holdings related to partial settlement of a pension plan obligation. The impact of these errors to the Company’s consolidated financial statements for the three months ended March 31, 2018, the nine months ended September 30, 2017, the six months ended June 30, 2017, the three months ended March 31, 2017 and the years ended December 31, 2017 and 2016 were not considered to be material. In order to improve the consistency and comparability of the financial statements, management will revise the consolidated statements of income (loss) and statements of cash flows to include the revisions for the classification error the next time the financial statements for the period ended September 30, 2017 and the years ended December 31, 2017 and 2016 are presented. Additionally, this misclassification error also impacts the three and six months ended June 30, 2017 and has been reflected in the revision of these financial statements by the revisions. This information has been corrected from the information previously presented in the Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2018. For these items, the tables detail the amounts as previously reported, the impact upon those line items due to the revisions, and the amounts as currently revised. As Previously Reported Impact of Revisions As Revised (in millions) As of March 31, 2018 Assets: DAC $ 4,826 $ (48 ) $ 4,778 Total Assets $ 222,424 $ (48 ) $ 222,376 Liabilities: Other liabilities 3,041 70 3,111 Current and deferred taxes 1,728 (25 ) 1,703 Total Liabilities 202,767 45 202,812 Equity: Retained Earnings 8,824 (93 ) 8,731 AXA Equitable Equity 15,545 (93 ) 15,452 Equity 18,633 (93 ) 18,540 Total Liabilities and Equity $ 222,424 $ (48 ) $ 222,376 As Previously Reported Impact of Revisions As Revised (in millions) Three Months Ended March 31, 2018 Consolidated Statement of Income (Loss): Revenues: Net derivative gains (losses) $ (777 ) $ (83 ) $ (860 ) Total Revenues 2,031 (83 ) 1,948 Benefits and other deductions: Interest credited to policyholders’ account balances $ 338 $ (83 ) $ 255 Compensation and benefits 456 70 526 Amortization of deferred policy acquisition costs, net 10 48 58 Total benefits and other deductions 2,115 35 2,150 Income (loss) from operations, before income taxes (84 ) (118 ) (202 ) Income tax (expense) benefit 44 25 69 Net income (loss) (40 ) (93 ) (133 ) Less: net (income) loss attributable to the noncontrolling interest (154 ) — (154 ) Net income (loss) attributable to AXA Equitable $ (194 ) $ (93 ) $ (287 ) Statements of Comprehensive Income (Loss): Net income (loss) $ (40 ) $ (93 ) $ (133 ) Comprehensive income (loss) (789 ) (93 ) (882 ) Comprehensive income (loss) attributable to AXA Equitable $ (950 ) $ (93 ) $ (1,043 ) As Previously Reported Impact of Revisions As Revised (in millions) Three Months Ended March 31, 2018 Statements of Equity: Retained earnings, beginning of year $ 9,010 $ — $ 9,010 Impact of adoption of revenue recognition standard ASC 606 8 — 8 Net income (loss) (194 ) (93 ) (287 ) Retained earnings, end of period $ 8,824 (93 ) $ 8,731 Total AXA Equitable’s equity, end of period $ 15,545 (93 ) $ 15,452 Total Equity, End of Period $ 18,633 $ (93 ) $ 18,540 As Previously Reported Impact of Revisions As Revised Three Months Ended March 31, 2018 (in millions) Consolidated Statement of Cash Flows: Cash flow from operating activities: Interest credited to policyholders’ account balances $ 338 $ (83 ) 255 Net derivative (gains) loss 777 83 860 Changes in: DAC 10 48 58 Current and deferred income taxes (52 ) (25 ) (77 ) Other, net (122 ) 70 (52 ) Net cash provided by (used in) operating activities $ (21 ) $ — $ (21 ) The following tables present line items for June 30, 2017 financial information that has been affected by the revisions and the change in accounting principle. This information has been corrected from the information previously presented in the Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2017. For these items, the tables detail the amounts as previously reported, the impact upon those line items due to the revisions, as revised after the revisions, the impacts of the change in accounting principle and the amounts as currently revised. As Previously Reported Impact of Revisions As Revised and Adjusted Herein Impact of Accounting Change As Revised (In millions) As of June 30, 2017 Assets: Other equity investments $ 1,477 $ (21 ) $ 1,456 $ — $ 1,456 Other invested assets 2,622 32 2,654 — 2,654 Total investments 62,111 11 62,122 — 62,122 DAC 4,141 247 4,388 525 4,913 Amounts due from reinsurers 4,870 19 4,889 — 4,889 Guaranteed minimum income benefit reinsurance contract asset, at fair value 11,290 (30 ) 11,260 — 11,260 Total Assets $ 214,941 $ 247 $ 215,188 $ 525 $ 215,713 Liabilities: Policyholders' account balance $ 41,531 $ (15 ) $ 41,516 $ — $ 41,516 Future policyholders' benefits and other policyholders' liabilities 26,799 79 26,878 2,801 29,679 Current and deferred taxes 4,000 65 4,065 (798 ) 3,267 Other liabilities 2,531 (9 ) 2,522 — 2,522 Total Liabilities 196,972 120 197,092 2,003 199,095 Equity: Retained Earnings 8,779 150 8,929 (1,450 ) 7,479 Accumulated other comprehensive income (loss) 493 (34 ) 459 (28 ) 431 AXA Equitable Equity 14,635 116 14,751 (1,478 ) 13,273 Noncontrolling interest 2,973 11 2,984 — 2,984 Equity 17,608 127 17,735 (1,478 ) 16,257 Total Liabilities and Equity $ 214,941 $ 247 $ 215,188 $ 525 $ 215,713 As Previously Reported Impact of Revisions As Revised and Adjusted Herein Impact of Accounting Change As Revised (In millions) Three Months Ended June 30, 2017 Statements of Income (Loss): Revenues: Policy charges and fee income $ 865 $ 49 $ 914 $ (68 ) $ 846 Premiums 216 9 225 — 225 Net derivative gains (losses) 1,693 (196 ) 1,497 266 1,763 Total revenues 4,488 (138 ) 4,350 198 4,548 Benefits and other deductions: Policyholders' benefits 1,452 45 1,497 (134 ) 1,363 Amortization of deferred policy acquisition costs, net (82 ) 31 (51 ) 2 (49 ) Interest credited to policyholders’ account balances 321 (113 ) 208 — 208 Other operating costs and expenses 155 (6 ) 149 — 149 Total benefits and other deductions 2,691 (43 ) 2,648 (132 ) 2,516 Income (loss) from operations, before income taxes 1,797 (95 ) 1,702 330 2,032 Income tax (expense) benefit (338 ) 34 (304 ) (115 ) (419 ) Net income (loss) 1,459 (61 ) 1,398 215 1,613 Net income (loss) attributable to AXA Equitable $ 1,346 $ (61 ) $ 1,285 $ 215 $ 1,500 Statements of Comprehensive Income (Loss): Net income (loss) $ 1,459 $ (61 ) $ 1,398 $ 215 $ 1,613 Change in unrealized gains (losses), net of reclassification adjustment 314 (28 ) 286 8 294 Other comprehensive income 294 (28 ) 266 8 274 Comprehensive income (loss) 1,753 (89 ) 1,664 223 1,887 Comprehensive income (loss) attributable to AXA Equitable $ 1,660 $ (89 ) $ 1,571 $ 223 $ 1,794 As Previously Reported Impact of Revisions As Revised and Adjusted Herein Impact of Accounting Change As Revised (in millions) Six Months Ended June 30, 2017 Statements of Income (Loss): Revenues: Policy charges and fee income $ 1,761 $ 72 $ 1,833 $ (135 ) $ 1,698 Premiums 441 16 457 — 457 Net derivative gains (losses) 969 (332 ) 637 725 1,362 Total revenues 6,477 (244 ) 6,233 590 6,823 Benefits and other deductions: Policyholders' benefits 2,343 60 2,403 (65 ) 2,338 Interest credited to policyholders' account balances 658 (210 ) 448 — 448 Amortization of deferred policy acquisition costs, net 43 (66 ) (23 ) 3 (20 ) Other operating costs and expenses 539 (9 ) 530 — 530 Total benefits and other deductions 5,253 (225 ) 5,028 (62 ) 4,966 Income (loss) from operations, before income taxes 1,224 (19 ) 1,205 652 1,857 Income tax (expense) benefit (78 ) 8 (70 ) (228 ) (298 ) Net income (loss) 1,146 (11 ) 1,135 424 1,559 Net income (loss) attributable to AXA Equitable $ 915 $ (11 ) $ 904 $ 424 $ 1,328 Statements of Comprehensive Income (Loss): Net income (loss) $ 1,146 $ (11 ) $ 1,135 $ 424 $ 1,559 Change in unrealized gains (losses), net of reclassification adjustment 458 (48 ) 410 (24 ) 386 Other comprehensive income 473 (48 ) 425 (24 ) 401 Comprehensive income (loss) 1,619 (59 ) 1,560 400 1,960 Comprehensive income (loss) attributable to AXA Equitable $ 1,401 $ (59 ) $ 1,342 $ 400 $ 1,742 As Previously Reported Impact of Revisions As Revised and Adjusted Herein Impact of Accounting Change As Revised (In millions) Six Months Ended June 30, 2017 Statements of Equity: Retained earnings, beginning of year $ 7,864 $ 161 $ 8,025 $ (1,874 ) $ 6,151 Net income (loss) 915 (11 ) 904 424 1,328 Retained earnings, end of period 8,779 150 8,929 (1,450 ) 7,479 Accumulated other comprehensive income, beginning of year 7 14 21 (4 ) 17 Other comprehensive income (loss) 486 (48 ) 438 (24 ) 414 Accumulated other comprehensive income, end of period 493 (34 ) 459 (28 ) 431 Total AXA Equitable’s equity, end of period 14,635 116 14,751 (1,478 ) 13,273 Noncontrolling interest, beginning of year 3,085 11 3,096 — 3,096 Noncontrolling interest, end of period 2,973 11 2,984 — 2,984 Total Equity, End of Period $ 17,608 $ 127 $ 17,735 $ (1,478 ) $ 16,257 As Previously Reported Impact of Revisions As Revised and Adjusted Herein Impact of Accounting Change As Revised (in millions) Six Months Ended June 30, 2017 Statements of Cash flows: Cash flow from operating activities: Net income (loss) $ 1,146 $ (11 ) $ 1,135 $ 424 $ 1,559 Policy charges and fee income (1,761 ) (72 ) (1,833 ) 135 (1,698 ) Interest credited to policyholders’ account balances 658 (210 ) 448 — 448 Net derivative (gains) loss (969 ) 332 (637 ) (725 ) (1,362 ) Changes in: Future policy benefits 1,381 (13 ) 1,368 (65 ) 1,303 Reinsurance recoverable (251 ) 57 (194 ) — (194 ) Deferred policy acquisition costs 43 (66 ) (23 ) 3 (20 ) Current and deferred income taxes (16 ) (8 ) (24 ) 228 204 Other 93 (9 ) 84 — 84 Net cash provided by (used in) operating activities $ (75 ) $ — $ (75 ) $ — $ (75 ) The following tables present line items for March 31, 2017 financial information that has been affected by the revisions and the change in accounting principle. This information has been corrected from the information previously presented in the Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2017. For these items, the tables detail the amounts as previously reported, the impact upon those line items due to the revisions, as revised after the revisions, the impacts of the change in accounting principle and the amounts as currently revised. As Previously Reported Impact of Revisions As Revised and Adjusted Herein Impact of Accounting Change As Revised (In millions) As of March 31, 2017 Assets: Other equity investments $ 1,463 $ (23 ) $ 1,440 $ — $ 1,440 Other invested assets 2,050 34 2,084 — 2,084 Total investments 60,406 11 60,417 — 60,417 DAC 4,068 367 4,435 526 4,961 Amounts due from reinsurers 4,639 8 4,647 — 4,647 Guaranteed minimum income benefit 9,795 3 9,798 — 9,798 Total Assets $ 209,098 $ 389 $ 209,487 $ 526 $ 210,013 Liabilities: Policyholders' account balance $ 40,308 $ (16 ) $ 40,292 $ — $ 40,292 Future policyholders' benefits and other policyholders' liabilities 25,496 51 25,547 3,144 28,691 Current and deferred taxes 3,523 120 3,643 (917 ) 2,726 Other liabilities 2,496 (3 ) 2,493 — 2,493 Total Liabilities 192,712 152 192,864 2,227 195,091 Equity: Retained Earnings 7,411 232 7,643 (1,665 ) 5,978 Accumulated other comprehensive income (loss) 179 (6 ) 173 (36 ) 137 AXA Equitable Equity 12,934 226 13,160 (1,701 ) 11,459 Noncontrolling interest 3,035 11 3,046 — 3,046 Equity 15,969 237 16,206 (1,701 ) 14,505 Total Liabilities and Equity $ 209,098 $ 389 $ 209,487 $ 526 $ 210,013 As Previously Reported Impact of Revisions As Revised and Adjusted Herein Impact of Accounting Change As Revised (In millions) Three Months Ended March 31, 2017 Statements of Income (Loss): Revenues: Policy charges and fee income $ 896 $ 23 $ 919 $ (67 ) $ 852 Premiums 225 7 232 — 232 Net derivative gains (losses) (724 ) (137 ) (861 ) 459 (402 ) Total revenues 1,989 (107 ) 1,882 392 2,274 Benefits and other deductions: Policyholders' benefits 891 15 906 69 975 Interest credited to policyholders' account balances 337 (98 ) 239 — 239 Amortization of deferred policy acquisition costs, net 125 (97 ) 28 1 29 Other operating costs and expenses 384 (3 ) 381 — 381 Total benefits and other deductions 2,562 (183 ) 2,379 70 2,449 Income (loss) from operations, before income taxes (573 ) 76 (497 ) 322 (175 ) Income tax (expense) benefit 260 (26 ) 234 (113 ) 121 Net income (loss) (313 ) 50 (263 ) 209 (54 ) Net income (loss) attributable to AXA Equitable $ (431 ) $ 50 $ (381 ) $ 209 $ (172 ) Statements of Comprehensive Income (Loss): Net income (loss) $ (313 ) $ 50 $ (263 ) $ 209 $ (54 ) Change in unrealized gains (losses), net of reclassification adjustment 144 (20 ) 124 (32 ) 92 Total other comprehensive income (loss), net of income taxes 179 (20 ) 159 (32 ) 127 Comprehensive income (loss) (134 ) 30 (104 ) 177 73 Comprehensive income (loss) attributable to AXA Equitable $ (259 ) $ 30 $ (229 ) $ 177 $ (52 ) As Previously Reported Impact of Revisions As Revised and Adjusted Herein Impact of Accounting Change As Revised (In millions) Three Months Ended March 31, 2017 Statements of Equity: Retained earnings, beginning of year $ 7,842 $ 183 $ 8,025 $ (1,874 ) $ 6,151 Net income (loss) (431 ) 50 (381 ) 209 (172 ) Retained earnings, end of period 7,411 233 7,644 (1,665 ) 5,979 Accumulated other comprehensive income, beginning of year 7 14 21 (4 ) 17 Other comprehensive income (loss) 172 (20 ) 152 (32 ) 120 Accumulated other comprehensive income, end of period 179 (6 ) 173 (36 ) 137 Total AXA Equitable’s equity, end of period 12,934 227 13,161 (1,701 ) 11,460 Noncontrolling interest, beginning of year 3,085 11 3,096 — 3,096 Noncontrolling interest, end of period 3,035 11 3,046 — 3,046 Total Equity, End of Period $ 15,969 $ 238 $ 16,207 $ (1,701 ) $ 14,506 As Previously Reported Impact of Revisions As Revised and Adjusted Herein Impact of Accounting Change As Revised (In millions) Three Months Ended March 31, 2017 Statements of Cash flows: Net income (loss) $ (313 ) $ 50 $ (263 ) $ 209 $ (54 ) Policy charges and fee income (896 ) (23 ) (919 ) 67 (852 ) Interest credited to policyholders’ account balances 337 (98 ) 239 — 239 Net derivative (gains) loss 724 137 861 (459 ) 402 Changes in: Deferred policy acquisition costs 125 (97 ) 28 1 29 Future policy benefits 185 (13 ) 172 69 241 Reinsurance recoverable (44 ) 21 (23 ) — (23 ) Current and deferred income taxes (327 ) 26 (301 ) 113 (188 ) Other 154 (3 ) 151 — 151 Net cash provided by (used in) operating activities $ 18 $ — $ 18 $ — $ 18 As Previously Reported Impact of Revisions As Revised For the Year ended December 31, 2017 (in millions) Consolidated Statement of Income (Loss): Revenues: Net derivative gains (losses) 890 (119 ) $ 771 Total revenues 11,733 $ (119 ) 11,614 Benefits and other deductions: Interest credited to Policyholder’s account balances 1,040 $ (119 ) 921 Total benefits and other deductions $ 9,478 $ (119 ) $ 9,359 As Previously Reported Impact of Revisions As Revised For the Year ended December 31, 2017 (in millions) Consolidated Statement of Cash Flows: Cash flow from operating activities: Interest credited to policyholders’ account balances $ 1,040 $ (119 ) $ 921 Net derivative (gains) loss (890 ) 119 (771 ) Net cash provided by (used in) operating activities $ 1,077 $ — $ 1,077 As Previously Reported Impact of Revisions As Revised For the Year ended December 31, 2016 (in millions) Consolidated Statement of Income (Loss): Revenues: Net derivative gains (losses) $ (1,211 ) $ (124 ) $ (1,335 ) Total revenues 9,138 $ (124 ) 9,014 Benefits and other deductions: Interest credited to Policyholder’s account balances 1,029 $ (124 ) 905 Total benefits and other deductions 8,516 $ (124 ) 8,392 As Previously Reported Impact of Revisions As Revised For the Year ended December 31, 2016 (in millions) Consolidated Statement of Cash Flows: Cash flow from operating activities: Interest credited to policyholders’ account balances $ 1,029 $ (124 ) $ 905 Net derivative (gains) loss 1,211 124 1,335 Net cash provided by (used in) operating activities $ (461 ) $ — $ (461 ) |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS On July 26, 2018, the Company made a $1,100 million cash dividend payment to its direct parent company, AXA Equitable Financial Services, LLC, recorded as a reduction to retained earnings. The Company’s ability to pay dividends to its parent company is restricted under New York State Insurance law. A domestic life insurer may not, without prior approval of the New York Department of Financial Services, pay a dividend to its shareholders exceeding an amount calculated based on a statutory formulas. The maximum dividends that may be paid for the remainder of 2018 by the Company without prior regulatory approval is approximately $142 million . |
SIGNIFICANT ACCOUNTING POLICI25
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Adoption of New Accounting Pronouncements and Future Adoption of New Accounting Pronouncements | Adoption of New Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued new guidance that revises the recognition criteria for revenue arising from contracts with customers to provide goods or services, except when those revenue streams are from insurance and investment contracts, 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, for which existing revenue recognition requirements are not superseded by this guidance. On January 1, 2018, the Company adopted the new revenue recognition guidance on a modified retrospective basis and is reporting the additional disclosures required by the new standard in first quarter 2018. Adoption of this new guidance did not change the amounts or timing of the Company’s revenue recognition for base investment management and advisory fees, distribution revenues, shareholder servicing revenues, and broker-dealer revenues. However, some performance-based fees and carried-interest distributions, that prior to adoption were recognized when no risk of reversal remained, in certain instances under the new standard may be recognized earlier if it is probable that significant reversal will not occur. As a result, on January 1, 2018, the Company recognized a cumulative effect adjustment, net of tax, to increase opening equity attributable to AXA Equitable and the noncontrolling interest by approximately $8 million and $25 million , respectively, reflecting the impact of carried-interest distributions previously received by AB of approximately $78 million , net of revenue sharing payments to investment team members of approximately $43 million , for which it is probable that significant reversal will not occur and for which incremental tax is provided at AXA Equitable. In January 2016, the FASB issued new guidance related to the recognition and measurement of financial assets and financial liabilities. The new guidance primarily affects the accounting for equity investments, financial liabilities under the fair value option, and presentation and disclosure requirements for financial instruments. In addition, the FASB clarified guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale (“AFS”) debt securities. The new guidance requires equity investments in unconsolidated entities, except those accounted for under the equity method, to be measured at fair value through earnings, thereby eliminating the AFS classification for equity securities with readily determinable fair values for which changes in fair value currently are reported in Accumulated Other Comprehensive Income (Loss) (“AOCI”). On January 1, 2018, the Company adopted the new recognition requirements on a modified retrospective basis for changes in the fair value of AFS equity securities, resulting in no material reclassification adjustment from AOCI to opening retained earnings for the net unrealized gains, net of tax, related to approximately $13 million common stock securities and eliminated their designation as AFS equity securities. The new guidance does not apply to FHLB common stock and prohibits such investments from being classified as equity securities subject to the new guidance. Accordingly, the Company has classified its investment in the FHLB common stock as other invested assets at June 30, 2018 . The Company’s investment assets held in the form of equity interests in unconsolidated entities, such as limited partnerships and limited liability companies, including hedge funds, private equity funds, and real estate-related funds, generally are accounted for under the equity method and were not impacted by this new guidance. The Company does not currently report any of its financial liabilities under the fair value option. In March 2017, the FASB issued new guidance on the presentation of net periodic pension and post-retirement benefit costs that requires retrospective disaggregation of the service cost component from the other components of net benefit costs on the income statement. The service cost component is required to be presented with other employee compensation costs in “income from operations,” and the remaining components are to be reported separately outside of income from operations. While this standard does not change the rules for how benefits costs are measured, it limits the amount eligible for capitalization on a prospective basis to the service cost component. On January 1, 2018, the Company adopted the change in the income statement presentation utilizing the practical expedient for determining the historical components of net benefits cost, resulting in no material impact to the consolidated financial statements. In addition, no changes to the Company’s capitalization policies with respect to benefits costs resulted from adoption of the new guidance. In May 2017, the FASB issued guidance on share-based payments. The amendment provides clarity intended to reduce diversity in practice and the cost and complexity of accounting for changes to the terms or conditions of share-based payment awards. The new guidance is effective for interim and annual periods beginning after December 15, 2017 and requires prospective application to awards modified on or after the date of adoption. Adoption of this amendment on January 1, 2018 did not have a material impact on the Company’s consolidated financial statements. 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. Adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. Future Adoption of New Accounting Pronouncements In June 2018, the FASB issued new guidance that largely aligns the accounting for share-based payment awards issued to employees and non-employees. The amendments in the new guidance are effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods, with early adoption permitted. Changes to the accounting for non-employee awards should be applied to all new awards as well as outstanding awards using transition provisions intended to simplify adoption by eliminating the need to retrospectively determine fair values at historical grant dates. The Company has granted share-based payment awards only to employees as defined by accounting guidance and does not expect this guidance will have a material impact on its consolidated financial statements. In February 2018, the FASB issued new guidance that will permit, but not require, entities to reclassify to retained earnings tax effects “stranded” in AOCI resulting from the change in federal tax rate enacted by the Tax Cuts and Jobs Act (the “Tax Reform Act”) on December 22, 2017. An entity that elects this option must reclassify these stranded tax effects for all items in AOCI, including, but not limited to, AFS securities and employee benefits. Tax effects stranded in AOCI for other reasons, such as prior changes in tax law, may not be reclassified. While the new guidance provides entities the option to reclassify these amounts, new disclosures are required regardless of whether entities elect to do so. The new guidance is effective for interim and annual periods beginning after December 15, 2018, with early adoption permitted. Election can be made either to apply the new guidance retrospectively to each period in which the effect of the Tax Reform Act is recognized or in the period of adoption. Management currently is evaluating the options provided for adopting this guidance and the potential impacts on the Company’s consolidated financial statements. In August 2017, the FASB issued new guidance on accounting for hedging activities, intended to more closely align the financial statement reporting of hedging relationships to the economic results of an entity’s risk management activities. In addition, the new guidance makes certain targeted modifications to simplify the application of current hedge accounting guidance. The new guidance is effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years, with early application permitted. The effect of adoption should be reflected as of the beginning of the fiscal year of adoption (that is, the initial application date). All transition requirements and elections should be applied to derivatives positions and hedging relationships existing on the date of adoption. Management currently is evaluating the impact that adoption of this guidance will have on the Company’s consolidated financial statements. In March 2017, the FASB issued guidance that requires certain premiums on callable debt securities to be amortized to the earliest call date and is intended to better align interest income recognition with the manner in which market participants price these instruments. The new guidance is effective for interim and annual periods beginning after December 15, 2018 with early adoption permitted and is to be applied on a modified retrospective basis. Management currently is 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 currently is evaluating the impact that adoption of this guidance will have on the Company’s consolidated financial statements. In February 2016, the FASB issued revised guidance to lease accounting that will require lessees to recognize on the balance sheet a “right-of-use” asset and a lease liability for virtually all lease arrangements, including those embedded in other contracts. The new lease accounting model will continue to distinguish between capital and operating leases. The current straight-line pattern for the recognition of rent expense on an operating lease is expected to remain substantially unchanged by the new guidance but instead will be comprised of amortization of the right-of-use asset and interest cost on the related lease obligation, thereby resulting in an income statement presentation similar to a financing arrangement or capital lease. Lessor accounting will remain substantially unchanged from the current model but has been updated to align with certain changes made to the lessee model. |
Revenue Recognition | Revenue Recognition Investment Management and Service Fees and Related Expenses Reported as Investment management and service fees in the Company’s consolidated statements of income (loss) are investment advisory and service fees, distribution revenues, and institutional research services revenues principally emerging from the Investment Management and Research segment. Also included are investment management and administrative service fees earned by AXA Equitable Funds Management Group, LLC (“AXA Equitable FMG”) and reported in the Individual Retirement, Group Retirement and Protection Solutions segments as well as certain asset-based fees associated with insurance contracts. Investment management, advisory, and service fees AB provides asset management services by managing customer assets and seeking to deliver returns to investors. Similarly, AXA Equitable FMG provides investment management and administrative services, such as fund accounting and compliance services, to AXA Premier VIP Trust (“VIP Trust”), EQ Advisors Trust (“EQAT”) and 1290 Funds as well as two private investment trusts established in the Cayman Islands, AXA Allocation Funds Trust and AXA Offshore Multimanager Funds Trust (collectively, the “Other AXA Trusts”). The contracts supporting these revenue streams create a distinct, separately identifiable performance obligation for each day the assets are managed for the performance of a series of services that are substantially the same and have the same pattern of transfer to the customer. Accordingly, these investment management, advisory, and service base fees are recorded over time as services are performed and entitle the Company to variable consideration. Base fees, generally calculated as a percentage of assets under management (“AUM”), are recognized as revenue at month-end when the transaction price no longer is variable and the value of the consideration is determined. These fees are not subject to claw back and there is minimal probability that a significant reversal of the revenue recorded will occur. Certain investment advisory contracts of AB, including those associated with hedge funds or other alternative investments, provide for a performance-based fee (including carried interest), in addition to a base advisory fee, calculated either as a percentage of absolute investment results or a percentage of investment results in excess of a stated benchmark over a specified period of time. These performance-based fees are forms of variable consideration and therefore, are excluded from the transaction price until it becomes probable there will not be significant reversal of the cumulative revenue recognized. At each reporting date, the Company evaluates constraining factors surrounding the variable consideration to determine the extent to which, if any, revenues associated with the performance-based fee can be recognized. Constraining factors impacting the amount of variable consideration included in the transaction price include contractual claw-back provisions, the length of time of the uncertainty, the number and range of possible amounts, the probability of significant fluctuations in the fund’s market value, and the level in which the fund’s value exceeds the contractual threshold required to earn such a fee and the materiality of the amount being evaluated. Prior to adoption of the new revenue recognition guidance on January 1, 2018, the Company recognized performance-based fees at the end of the applicable measurement period when no risk of reversal remained, and carried-interest distributions received as deferred revenues until no risk of reversal remained. Sub-advisory and sub-administrative expenses associated with these services are calculated and recorded as the related services are performed in Other operating costs and expense in the consolidated statements of income (loss) as the Company is acting in a principal capacity in these transactions and, as such, reflects these revenues and expenses on a gross basis. Research services Research services revenue principally consists of brokerage transaction charges received by Sanford C. Bernstein & Co. LLC (“SCB LLC”) and Sanford C. Bernstein Limited (“SCBL”) for providing equity research services to institutional clients. Brokerage commissions for trade execution services and related expenses are recorded on a trade-date basis when the performance obligations are satisfied. Generally, the transaction price is agreed upon at the point of each trade and based upon the number of shares traded or the value of the consideration traded. Research revenues are recognized when the transaction price is quantified, collectability is assured, and significant reversal of such revenue is not probable. Distribution services Revenues from distribution services include fees received as partial reimbursement of expenses incurred in connection with the sale of certain AB sponsored mutual funds and the 1290 Funds and for the distribution primarily of EQAT and VIP Trust shares to separate accounts in connection with the sale of variable life and annuity contracts. The amount and timing of revenues recognized from performance of these distribution services often is dependent upon the contractual arrangements with the customer and the specific product sold as further described below. Most open-end management investment companies, such as U.S. funds and the EQAT and VIP Trusts and the 1290 Funds, have adopted a plan under Rule 12b-1 of the Investment Company Act that allows for certain share classes to pay out of assets, distribution and service fees for the distribution and sale of its shares (“12b-1 Fees”). These open-end management investment companies have such agreements with the Company, and the Company has selling and distribution agreements pursuant to which it pays sales commissions to the financial intermediaries that distribute the shares. These agreements may be terminated by either party upon notice (generally 30 days) and do not obligate the financial intermediary to sell any specific amount of shares. The Company records 12b-1 fees monthly based upon a percentage of the net asset value (“NAV”) of the funds. At month-end, the variable consideration of the transaction price is no longer constrained as the NAV can be calculated and the value of consideration is determined. These services are separate and distinct from other asset management services as the customer can benefit from these services independently of other services. The Company accrues the corresponding 12b-1 fees paid to sub-distributors monthly as the expenses are incurred. The Company is acting in a principal capacity in these transactions; as such, these revenues and expenses are recorded on a gross basis in the consolidated statements of income (loss). AB sponsored mutual funds offer back-end load shares in limited instances and charge the investor a contingent deferred sales charge (“CDSC”) if the investment is redeemed within a certain period. The variable consideration for these contracts is contingent upon the timing of the redemption by the investor and the value of the sales proceeds. Due to these constraining factors, the Company excludes the CDSC fee from the transaction price until the investor redeems the investment. Upon redemption, the cash consideration received for these contractual arrangements is recorded as a reduction of unamortized deferred sales commissions. AB’s Luxembourg subsidiary, the management company for most of its non-U.S. funds earns a management fee which is accrued daily and paid monthly, at an annual rate, based on the average daily net assets of the fund. With respect to certain share classes, the management fee also may contain a component paid to distributors and other financial intermediaries and service providers to cover shareholder servicing and other administrative expenses (also referred to as an “All-in-Fee”). Based on the conclusion that asset management is distinct from distribution, the Company allocates a portion of the investment and advisory fee to distribution revenues for the servicing component based on standalone selling prices. Other revenues Also reported as Investment management and service fees in the Company’s consolidated statements of income (loss) are other revenues from contracts with customers, primarily consisting of shareholder servicing fees, mutual fund reimbursements, and other brokerage income. Shareholder services, including transfer agency, administration, and record-keeping are provided by AB to company-sponsored mutual funds. The consideration for these services is based on a percentage of the NAV of the fund or a fixed-fee based on the number of shareholder accounts being serviced. The revenues are recorded at month-end when the constraining factors involved with determining NAV or the numbers of shareholders’ accounts are resolved. Other income Revenues from contracts with customers reported as Other income in the Company’s consolidated statements of income (loss) primarily consist of commission and expense reimbursements related to business reinsured with affiliates and distribution fees received by the Company’s subsidiary broker-dealer for sales of affiliate insurers’ life insurance and annuity products. These revenues are recognized at month-end when constraining factors, such as premiums ceded and product mix, are resolved and the value of consideration is determined. Contract assets and liabilities The Company applies the practical expedient for contracts that have an original duration of one year or less. Accordingly, the Company accrues the incremental costs of obtaining a contract when incurred and does not consider the time value of money. At June 30, 2018 there are no material balances of contract assets and contract liabilities; as such, no further disclosures are necessary |
Accounting and Consolidation of VIEs | Accounting and Consolidation of Variable Interest Entities (“VIEs”) A VIE must be consolidated by its primary beneficiary, which generally is defined as the party that 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 June 30, 2018 , the Company held approximately $ 1,145 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 Company 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 or other financial arrangements, if any, the Company 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 $ 166,099 million, and the Company’s maximum exposure to loss from its direct involvement with these VIEs is the carrying value of its investment of $ 1,145 million at June 30, 2018 . Except for approximately $ 771 million of unfunded commitments at June 30, 2018 , the Company has no further economic interest in these VIEs in the form of guarantees, derivatives, credit enhancements or similar instruments and obligations. At June 30, 2018 , the Company consolidated one real estate joint venture for which it was identified as primary beneficiary under the VIE model. The consolidated entity is jointly owned by AXA Equitable and AXA France and holds an investment in a real estate venture. Included in the Company’s consolidated balance sheet at June 30, 2018 , are total assets of $ 37 million related to this VIE, primarily resulting from the consolidated presentation of $ 37 million of real estate held for production of income. In addition, real estate held for production of income reflects $ 16 million as related to two non-consolidated joint ventures at June 30, 2018 . Included in the Company’s consolidated balance sheet at June 30, 2018 are assets of $ 225 million , liabilities of $ 5 million and redeemable non-controlling interest of $ 93 million associated with the consolidation of AB-sponsored investment funds under the VIE model. Also included in the Company’s consolidated balance sheets are assets of $ 108 million , liabilities of $ 2 million and redeemable non-controlling interest of $ 10 million from consolidation of AB-sponsored investment funds under the VOE model. The assets of these consolidated funds are presented within Other invested assets and cash and cash equivalents, and liabilities of these consolidated funds are presented with other liabilities on the face of the Company’s consolidated balance sheet at June 30, 2018 ; ownership interests not held by the Company relating to consolidated VIEs and VOEs are presented either as redeemable or non-redeemable noncontrolling interest, as appropriate. The Company is not required to provide financial support to these company-sponsored investment funds, and only the assets of such funds are available to settle each fund’s liabilities. As of June 30, 2018 , the net assets of AB sponsored investment products that are non-consolidated VIEs are approximately $ 47.6 billion, and the Company’s maximum risk of loss is its investment of $ 6 million in these VIEs and its advisory fee receivables from these VIEs, which are not material. |
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. |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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) June 30, 2018: Fixed Maturity Securities: Public corporate $ 17,368 $ 356 $ 423 $ 17,301 $ — Private corporate 7,004 88 147 6,945 — U.S. Treasury, government and agency 14,112 206 415 13,903 — States and political subdivisions 413 50 1 462 — Foreign governments 440 18 11 447 — Residential mortgage-backed (1) 211 10 — 221 — Asset-backed (2) 621 1 5 617 2 Redeemable preferred stock 469 33 4 498 — Total at June 30, 2018 $ 40,638 $ 762 $ 1,006 $ 40,394 $ 2 As a result of the adoption of the Financial Instruments - Recognition and Measurement of Financial Assets and Financial Liabilities (ASU 2016-01) standard on January 1, 2018, equity securities are no longer classified and accounted for as available-for-sale securities (see Note 2). Amortized Gross Unrealized Gross Unrealized Fair OTTI (3) (in millions) December 31, 2017: Fixed Maturity Securities: Public corporate $ 13,645 $ 725 $ 25 $ 14,345 $ — Private corporate 6,951 217 31 7,137 — U.S. Treasury, government and agency 12,644 676 185 13,135 — States and political subdivisions 414 67 — 481 — Foreign governments 387 27 5 409 — Residential mortgage-backed (1) 236 15 — 251 — Asset-backed (2) 93 3 — 96 2 Redeemable preferred stock 461 44 1 504 — Total Fixed Maturities 34,831 1,774 247 36,358 2 Equity securities 157 — — 157 — Total at December 31, 2017 $ 34,988 $ 1,774 $ 247 $ 36,515 $ 2 (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. (3) Amounts represent OTTI losses in AOCI, which were not included in income (loss) in accordance with current accounting guidance. |
Available-for-sale Securities Fixed Maturities Contractual Maturities | The contractual maturities of AFS fixed maturities at June 30, 2018 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 June 30, 2018 Amortized Cost Fair Value (in millions) Due in one year or less $ 1,683 $ 1,688 Due in years two through five 7,582 7,664 Due in years six through ten 12,810 12,641 Due after ten years 17,262 17,065 Subtotal 39,337 39,058 Residential mortgage-backed securities 211 221 Asset-backed securities 621 617 Redeemable preferred stock 469 498 Total $ 40,638 $ 40,394 |
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 three and six months ended June 30, 2018 and 2017 : Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 (in millions) Proceeds from sales $ 373 $ 121 $ 3,801 $ 535 Gross gains on sales $ 7 $ 10 $ 134 $ 29 Gross losses on sales $ (14 ) $ (7 ) $ (55 ) $ (27 ) Total OTTI $ — $ (13 ) $ — $ (13 ) Non-credit losses recognized in OCI — — — — Credit losses recognized in net income (loss) $ — $ (13 ) $ — $ (13 ) |
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 June 30, Six Months Ended June 30, 2018 2017 2018 2017 (in millions) Balances, beginning of period $ (10 ) $ (147 ) $ (10 ) $ (190 ) Previously recognized impairments on securities that matured, paid, prepaid or sold 1 45 1 88 Recognized impairments on securities impaired to fair value this period (1) — — — — Impairments recognized this period on securities not previously impaired — (13 ) — (13 ) Additional impairments this period on securities previously impaired — — — — 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 June 30 $ (9 ) $ (115 ) $ (9 ) $ (115 ) |
Net Unrealized Gain (Loss) on Fixed Maturities and Equity Securities Included in AOCI | Net unrealized investment gains (losses) on fixed maturities 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: June 30, December 31, 2017 (in millions) AFS Securities: Fixed maturities: With OTTI loss $ 1 $ 1 All other (245 ) 1,526 Net Unrealized Gains (Losses) $ (244 ) $ 1,527 |
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: Net Unrealized Gains (Losses) on Fixed Maturities with OTTI Losses Net DAC Policyholders’ Deferred AOCI Gain (in millions) Balance, April 1, 2018 $ (1 ) $ — $ — $ (5 ) $ (6 ) Net investment gains (losses) arising during the period — — — — — Reclassification adjustment: Included in Net income (loss) 2 — — — 2 Excluded from Net income (loss) (1) — — — — — Impact of net unrealized investment gains (losses) on: DAC — — — — — Deferred income taxes — — — 5 5 Policyholders’ liabilities — — — — — Balance, June 30, 2018 $ 1 $ — $ — $ — $ 1 Balance, April 1, 2017 $ 20 $ (5 ) $ (5 ) $ (4 ) $ 6 Net investment gains (losses) arising during the period (44 ) — — — (44 ) Reclassification adjustment: Included in Net income (loss) 18 — — — 18 Excluded from Net income (loss) (1) — — — — — Impact of net unrealized investment gains (losses) on: DAC — 7 — — 7 Deferred income taxes — — — 5 5 Policyholders’ liabilities — — 6 — 6 Balance, June 30, 2017 $ (6 ) $ 2 $ 1 $ 1 $ (2 ) (1) Represents “transfers in” related to the portion of OTTI losses recognized during the period that were not recognized in income (loss) for securities with no prior OTTI loss. Net DAC Policyholders’ Deferred AOCI Gain (in millions) Balance, January 1, 2018 $ 1 $ 1 $ (1 ) $ (5 ) $ (4 ) Net investment gains (losses) arising during the period — — — — — Reclassification adjustment: Included in Net income (loss) — — — — — Excluded from Net income (loss) (1) — — — — — Impact of net unrealized investment gains (losses) on: DAC — (1 ) — — (1 ) Deferred income taxes — — — 5 5 Policyholders’ liabilities — — 1 — 1 Balance, June 30, 2018 $ 1 $ — $ — $ — $ 1 Balance, January 1, 2017 $ 19 $ (1 ) $ (10 ) $ (3 ) $ 5 Net investment gains (losses) arising during the period 5 — — — 5 Reclassification adjustment: Included in Net income (loss) (30 ) — — — (30 ) Excluded from Net income (loss) (1) — — — — — Impact of net unrealized investment gains (losses) on: DAC — 3 — — 3 Deferred income taxes — — — 4 4 Policyholders’ liabilities — — 11 — 11 Balance, June 30, 2017 $ (6 ) $ 2 $ 1 $ 1 $ (2 ) (1) Represents “transfers in” related to the portion of OTTI losses recognized during the period that were not recognized in income (loss) for securities with no prior OTTI loss. |
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, April 1, 2018 $ 193 $ (27 ) $ (124 ) $ (103 ) $ (61 ) Net investment gains (losses) arising during the period (441 ) — — — (441 ) Reclassification adjustment: — Included in Net income (loss) 3 — — — 3 Excluded from Net income (loss) (1) — — — — — Impact of net unrealized investment gains (losses) on: DAC — 38 — — 38 Deferred income taxes — — — 76 76 Policyholders’ liabilities — — 14 — 14 Balance, June 30, 2018 $ (245 ) $ 11 $ (110 ) $ (27 ) $ (371 ) Balance, April 1, 2017 $ 606 $ (143 ) $ (162 ) $ (106 ) $ 195 Net investment gains (losses) arising during the period 524 — — — 524 Reclassification adjustment: — Included in Net income (loss) 15 — — — 15 Excluded from Net income (loss) (1) — — — — — Impact of net unrealized investment gains (losses) on: DAC — (57 ) — — (57 ) Deferred income taxes — — — (157 ) (157 ) Policyholders’ liabilities — — (29 ) — (29 ) Balance, June 30, 2017 $ 1,145 $ (200 ) $ (191 ) $ (263 ) $ 491 (1) Represents “transfers out” related to the portion of OTTI losses during the period that were not recognized in income (loss) for securities with no prior OTTI loss. Net DAC Policyholders’ Deferred AOCI Gain (in millions) Balance, January 1, 2018 $ 1,526 $ (315 ) $ (232 ) $ (300 ) $ 679 Net investment gains (losses) arising during the period (1,686 ) — — — (1,686 ) Reclassification adjustment: — Included in Net income (loss) (85 ) — — — (85 ) Excluded from Net income (loss) (1) — — — — — Impact of net unrealized investment gains (losses) on: DAC — 326 — — 326 Deferred income taxes — — — 273 273 Policyholders’ liabilities — — 122 — 122 Balance, June 30, 2018 $ (245 ) $ 11 $ (110 ) $ (27 ) $ (371 ) Balance, January 1, 2017 $ 428 $ (70 ) $ (188 ) $ (60 ) $ 110 Net investment gains (losses) arising during the period 690 — — — 690 Reclassification adjustment: — Included in Net income (loss) 27 — — — 27 Excluded from Net income (loss) (1) — — — — — Impact of net unrealized investment gains (losses) on: DAC — (130 ) — — (130 ) Deferred income taxes — — — (203 ) (203 ) Policyholders’ liabilities — — (3 ) — (3 ) Balance, June 30, 2017 $ 1,145 $ (200 ) $ (191 ) $ (263 ) $ 491 (1) Represents “transfers out” related to the portion of OTTI losses during the period that were not recognized in income (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 1,429 issues at June 30, 2018 and the 620 issues at December 31, 2017 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) June 30, 2018: Fixed Maturity Securities: Public corporate $ 9,005 $ 393 $ 501 $ 30 $ 9,506 $ 423 Private corporate 2,982 97 700 50 3,682 147 U.S. Treasury, government and agency 4,871 86 2,868 329 7,739 415 States and political subdivisions 19 1 — — 19 1 Foreign governments 128 3 73 8 201 11 Residential mortgage-backed 14 — — — 14 — Asset-backed 535 5 — — 535 5 Redeemable preferred stock 107 2 12 2 119 4 Total $ 17,661 $ 587 $ 4,154 $ 419 $ 21,815 $ 1,006 December 31, 2017: Fixed Maturity Securities: Public corporate $ 1,384 $ 9 $ 548 $ 16 $ 1,932 $ 25 Private corporate 718 8 615 23 1,333 31 U.S. Treasury, government and agency 2,150 6 3,005 179 5,155 185 States and political subdivisions 20 — — — 20 — Foreign governments 11 — 73 5 84 5 Residential mortgage-backed 18 — — — 18 — Asset-backed 7 — 2 — 9 — Redeemable preferred stock 7 — 12 1 19 1 Total $ 4,315 $ 23 $ 4,255 $ 224 $ 8,570 $ 247 |
Net Investment Income (Loss) from Trading Securities | The table below shows a breakdown of Net investment income from trading account securities during the three and six months ended June 30, 2018 and 2017 : Net Investment Income (Loss) from Trading Securities Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 (in millions) Net investment gains (losses) recognized during the period on securities held at the end of the period $ (108 ) $ 57 $ (172 ) $ 108 Net investment gains (losses) recognized on securities sold during the period $ (10 ) $ 23 (9 ) 25 Unrealized and realized gains (losses) on trading securities arising during the period (118 ) 80 (181 ) 133 Interest and dividend income from trading securities 80 49 146 89 Net investment income (loss) from trading securities $ (38 ) $ 129 $ (35 ) $ 222 |
Valuation Allowance for Mortgage Loans | Allowance for credit losses for mortgage loans for the first six months of 2018 and 2017 are as follows: Six Months Ended June 30, 2018 2017 Allowance for credit losses: (in millions) Beginning balance, January 1, $ 8 $ 8 Charge-offs — — Recoveries (1 ) — Provision — — Ending balance, June 30, $ 7 $ 8 June 30, Individually Evaluated for Impairment $ 7 $ 8 |
Mortgage Loans by Loan-To-Value and Debt Service Coverage Ratios | Mortgage Loans by Loan-to-Value and Debt Service Coverage Ratios June 30, 2018 Debt Service Coverage Ratio (1) 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% $ 770 $ 21 $ 330 $ 73 $ — $ — $ 1,194 50% - 70% 4,709 588 1,280 411 152 — 7,140 70% - 90% 217 110 144 309 27 — 807 90% plus — — 27 — — — 27 Total Commercial Mortgage Loans $ 5,696 $ 719 $ 1,781 $ 793 $ 179 $ — $ 9,168 Agricultural Mortgage Loans (1) 0% - 50% $ 280 $ 141 $ 266 $ 528 $ 316 $ 31 $ 1,562 50% - 70% 114 55 227 366 234 50 1,046 70% - 90% — — — 23 — — 23 90% plus — — — — — — — Total Agricultural Mortgage Loans $ 394 $ 196 $ 493 $ 917 $ 550 $ 81 $ 2,631 Total Mortgage Loans (1) 0% - 50% $ 1,050 $ 162 $ 596 $ 601 $ 316 $ 31 $ 2,756 50% - 70% 4,823 643 1,507 777 386 50 8,186 70% - 90% 217 110 144 332 27 — 830 90% plus — — 27 — — — 27 Total Mortgage Loans $ 6,090 $ 915 $ 2,274 $ 1,710 $ 729 $ 81 $ 11,799 (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, 2017 Debt Service Coverage Ratio (1) 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% $ 742 $ — $ 320 $ 74 $ — $ — $ 1,136 50% - 70% 4,088 682 1,066 428 145 — 6,409 70% - 90% 169 110 196 272 50 — 797 90% plus — — 27 — — — 27 Total Commercial Mortgage Loans $ 4,999 $ 792 $ 1,609 $ 774 $ 195 $ — $ 8,369 Agricultural Mortgage Loans (1) 0% - 50% $ 272 $ 149 $ 275 $ 515 $ 316 $ 30 $ 1,557 50% - 70% 111 46 227 359 221 49 1,013 70% - 90% — — — 4 — — 4 90% plus — — — — — — — Total Agricultural Mortgage Loans $ 383 $ 195 $ 502 $ 878 $ 537 $ 79 $ 2,574 Total Mortgage Loans (1) 0% - 50% $ 1,014 $ 149 $ 595 $ 589 $ 316 $ 30 $ 2,693 50% - 70% 4,199 728 1,293 787 366 49 7,422 70% - 90% 169 110 196 276 50 — 801 90% plus — — 27 — — — 27 Total Mortgage Loans $ 5,382 $ 987 $ 2,111 $ 1,652 $ 732 $ 79 $ 10,943 (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 June 30, 2018 and December 31, 2017 , respectively. Age Analysis of Past Due Mortgage Loan 30-59 Days 60-89 Days 90 Days or > Total Current Total Financing Receivables Recorded Investment 90 Days or > and Accruing (in millions) June 30, 2018 Commercial $ — $ — $ 27 $ 27 $ 9,141 $ 9,168 $ — Agricultural 46 12 21 79 2,552 2,631 21 Total Mortgage Loans $ 46 $ 12 $ 48 $ 106 $ 11,693 $ 11,799 $ 21 December 31, 2017 Commercial $ 27 $ — $ — $ 27 $ 8,342 $ 8,369 $ — Agricultural 49 3 22 74 2,500 2,574 22 Total Mortgage Loans $ 76 $ 3 $ 22 $ 101 $ 10,842 $ 10,943 $ 22 |
Impaired Mortgage Loans | The following table provides information relating to impaired loans at June 30, 2018 and December 31, 2017 , respectively Impaired Mortgage Loans Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment (1) Interest Income Recognized (in millions) June 30, 2018: With no related allowance recorded: Commercial mortgage loans - other $ — $ — $ — $ — $ — Agricultural mortgage loans — — — — — Total $ — $ — $ — $ — $ — With related allowance recorded: Commercial mortgage loans - other $ 27 $ 27 $ 7 $ 27 $ — Agricultural mortgage loans — — — — — Total $ 27 $ 27 $ 7 $ 27 $ — December 31, 2017: With no related allowance recorded: Commercial mortgage loans - other $ — $ — $ — $ — $ — Agricultural mortgage loans — — — — — Total $ — $ — $ — $ — $ — With related allowance recorded: Commercial mortgage loans - other $ 27 $ 27 $ (8 ) $ 27 $ 2 Agricultural mortgage loans — — — — — Total $ 27 $ 27 $ (8 ) $ 27 $ 2 (1) Represents a two-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 June 30, 2018 Gains (Losses) Fair Value Notional Amount Asset Derivatives Liability Derivatives (in millions) Freestanding derivatives: Equity contracts: (1) Futures $ 7,314 $ 2 $ 1 $ (274 ) Swaps 8,330 119 79 (49 ) Options 22,285 3,608 1,531 233 Interest rate contracts: (1) Swaps 28,010 570 252 (516 ) Futures 20,962 — — 109 Credit contracts: (1) Credit default swaps 1,954 26 3 (2 ) Other freestanding contracts: (1) Foreign currency contracts 1,953 34 13 14 Margin — 15 — — Collateral — 3 2,549 — Embedded derivatives: GMIB reinsurance contracts (4) — 1,825 — (1,224 ) GMxB derivative features liability (2,4) — — 3,500 847 SCS, SIO, MSO and IUL indexed features (3,4) — — 1,891 (310 ) Total $ 90,808 $ 6,202 $ 9,819 $ (1,172 ) (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. (4) Reported in Net derivative gains (losses) in the consolidated statements of income (loss). At December 31, 2017 Gains (Losses) Fair Value Notional Amount Asset Derivatives Liability Derivatives (in millions) Freestanding derivatives: Equity contracts: (1) Futures $ 3,113 $ 1 $ 3 $ (328 ) Swaps 4,655 3 126 (403 ) Options 20,630 3,334 1,426 477 Interest rate contracts: (1) Swaps 19,032 320 191 452 Futures 11,032 — — 22 Swaptions — — — — Credit contracts: (1) Credit default swaps 2,131 35 3 9 Other freestanding contracts: (1) Foreign currency contracts 1,423 19 10 (1 ) Margin — 24 — — Collateral — 4 1,855 — Embedded derivatives: GMIB reinsurance contracts (4) — 10,488 — 893 GMxB derivative features liability (2,4) — — 4,164 721 SCS, SIO, MSO and IUL indexed features (3,4) — — 1,698 (480 ) Total $ 62,016 $ 14,228 $ 9,476 $ 1,362 (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 the Future policyholders’ benefits and other policyholders’ liabilities in the consolidated balance sheets. (4) Reported in Net derivative gains (losses) in the consolidated statements of income (loss). |
Offsetting Financial Assets and Liabilities and Derivative Instruments | The following table presents information about the Company’s offsetting of financial assets and liabilities and derivative instruments at June 30, 2018 . Offsetting of Financial Assets and Liabilities and Derivative Instruments At June 30, 2018 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 $ 3,730 $ 1,611 $ 2,119 Interest rate contracts 570 252 318 Credit contracts 26 3 23 Currency 34 13 21 Margin 15 — 15 Collateral 3 2,549 (2,546 ) Total Derivatives, subject to an ISDA Master Agreement 4,378 4,428 (50 ) Total Derivatives 4,378 4,428 (50 ) Other financial instruments 1,803 — 1,803 Other invested assets $ 6,181 $ 4,428 $ 1,753 LIABILITIES (2) Description Derivatives: Equity contracts $ 1,611 $ 1,611 $ — Interest rate contracts 252 252 — Credit contracts 3 3 — Currency 13 13 — Margin — — — Collateral 2,549 2,549 — Total Derivatives, subject to an ISDA Master Agreement 4,428 4,428 — Total Derivatives, not subject to an ISDA Master Agreement — — — Total Derivatives 4,428 4,428 — Other financial liabilities 2,008 — 2,008 Other liabilities $ 6,436 $ 4,428 $ 2,008 Securities sold under agreement to repurchase (3) $ 1,842 $ — $ 1,842 (1) Excludes Investment Management and Research segment’s derivative assets of consolidated VIEs/VOEs. (2) Excludes Investment Management and Research segment’s derivative liabilities of consolidated VIEs/VOEs. (3) Excludes expense of $ 8 million in securities sold under agreement to repurchase. The following table presents information about the Company’s offsetting financial assets and liabilities and derivative instruments at December 31, 2017 . Offsetting of Financial Assets and Liabilities and Derivative Instruments At December 31, 2017 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 $ 3,338 $ 1,555 $ 1,783 Interest rate contracts 320 191 129 Credit contracts 35 3 32 Currency 19 10 9 Collateral 4 1,855 (1,851 ) Margin 24 — 24 Total Derivatives, subject to an ISDA Master Agreement 3,740 3,614 126 Total Derivatives 3,740 3,614 126 Other financial instruments 2,995 — 2,995 Other invested assets $ 6,735 $ 3,614 $ 3,121 LIABILITIES (2) Description Derivatives: Equity contracts $ 1,555 $ 1,555 $ — Interest rate contracts 191 191 — Credit contracts 3 3 — Currency 10 10 — Margin — — — Collateral 1,855 1,855 — Total Derivatives, subject to an ISDA Master Agreement 3,614 3,614 — Total Derivatives, not subject to an ISDA Master Agreement — — — Total Derivatives 3,614 3,614 — Other financial liabilities 2,663 — 2,663 Other liabilities $ 6,277 $ 3,614 $ 2,663 Securities sold under agreement to repurchase (3) $ 1,882 $ — $ 1,882 (1) Excludes Investment Management and Research segment’s derivative assets of consolidated VIEs/VOEs. (2) Excludes Investment Management and Research segment’s derivative liabilities of consolidated VIEs/VOEs. (3) Excludes expense of $ 5 million in securities sold under agreement to repurchase. |
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 sheet at December 31, 2017 . Collateral Amounts Offset in the Consolidated Balance Sheets At December 31, 2017 Net Amounts Presented in the Balance Sheets Collateral (Received)/Held Financial Instruments Cash Net Amounts (in millions) ASSETS: (1) Total Derivatives $ 1,954 $ — $ (1,828 ) $ 126 Other financial instruments 2,995 — — 2,995 Other invested assets $ 4,949 $ — $ (1,828 ) $ 3,121 LIABILITIES (2) Other financial liabilities $ 2,663 $ — $ — $ 2,663 Other liabilities $ 2,663 $ — $ — $ 2,663 Securities sold under agreement to repurchase (3) $ 1,882 $ (1,988 ) $ (21 ) $ (127 ) (1) Excludes Investment Management and Research segment’s derivative assets of consolidated VIEs/VOEs. (2) Excludes Investment Management and Research segment’s derivative liabilities of consolidated VIEs/VOEs. (3) Excludes expense of $ 5 million in securities sold under agreement to repurchase. The following table presents information about the Company’s gross collateral amounts that are not offset in the consolidated balance sheets at June 30, 2018 . Collateral Amounts Offset in the Consolidated Balance Sheets At June 30, 2018 Fair Value of Assets Collateral (Received)/Held Financial Instruments Cash Net Amounts (in millions) ASSETS: (1) Total derivatives $ 2,481 $ — $ (2,531 ) $ (50 ) Other financial instruments 1,803 — — 1,803 Other invested assets $ 4,284 $ — $ (2,531 ) $ 1,753 LIABILITIES: (2) Securities sold under agreement to repurchase (3) $ 1,842 $ (1,889 ) $ (13 ) $ (60 ) (1) Excludes Investment Management and Research segment’s derivative assets of consolidated VIEs/VOEs. (2) Excludes Investment Management and Research segment’s derivative liabilities of consolidated VIEs/VOEs. (3) Excludes expense of $ 8 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 sheet at June 30, 2018 . Repurchase Agreement Accounted for as Secured Borrowings At June 30, 2018 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 (1) U.S. Treasury and agency securities $ — $ 1,842 $ — $ — $ 1,842 Total $ — $ 1,842 $ — $ — $ 1,842 (1) Excludes expense accrual of $ 8 million in securities sold under agreement to repurchase. The following table presents information about repurchase agreements accounted for as secured borrowings in the consolidated balance sheet at December 31, 2017 . Repurchase Agreement Accounted for as Secured Borrowings At December 31, 2017 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 (1) U.S. Treasury and agency securities $ — $ 1,882 $ — $ — $ 1,882 Total $ — $ 1,882 $ — $ — $ 1,882 (1) Excludes expense of $ 5 million in Securities sold under agreement to repurchase on the consolidated balance sheet. |
CLOSED BLOCK (Tables)
CLOSED BLOCK (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Closed Block Disclosure [Abstract] | |
Summarized Financial Information for Closed Blocks | Summarized financial information for the Company’s Closed Block is as follows: June 30, December 31, (in millions) CLOSED BLOCK LIABILITIES: Future policy benefits, policyholders’ account balances and other $ 6,829 $ 6,958 Policyholder dividend obligation — 19 Other liabilities 272 271 Total Closed Block liabilities 7,101 7,248 ASSETS DESIGNATED TO THE CLOSED BLOCK: Fixed maturities, available for sale, at fair value (amortized cost of $3,768 and $3,923) 3,772 4,070 Mortgage loans on real estate 1,908 1,720 Policy loans 752 781 Cash and other invested assets 216 351 Other assets 182 182 Total assets designated to the Closed Block 6,830 7,104 Excess of Closed Block liabilities over assets designated to the Closed Block 271 144 Amounts included in accumulated other comprehensive income (loss): Net unrealized investment gains (losses), net of policyholder dividend obligation of $0 and $19 14 138 Maximum Future Earnings To Be Recognized From Closed Block Assets and Liabilities $ 285 $ 282 |
Closed Block Revenues and Expenses | The Company’s Closed Block revenues and expenses follow: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 (in millions) REVENUES: Premiums and other income $ 49 $ 61 $ 100 $ 115 Net investment income (loss) 73 79 146 162 Net investment gains (losses) — (1 ) 1 (16 ) Total revenues 122 139 247 261 BENEFITS AND OTHER DEDUCTIONS: Policyholders’ benefits and dividends 123 133 249 284 Other operating costs and expenses — 1 2 1 Total benefits and other deductions 123 134 251 285 Net revenues (loss) before income taxes (1 ) 5 (4 ) (24 ) Income tax (expense) benefit — (2 ) 1 8 Net Revenues (Losses) $ (1 ) $ 3 $ (3 ) $ (16 ) |
Reconciliation of Policy Holder Dividend Obligation | A reconciliation of the Company’s policyholder dividend obligation follows: Six Months Ended June 30, 2018 2017 (in millions) Balances, beginning of year $ 19 $ 52 Unrealized investment gains (losses), net of DAC (19 ) (5 ) Balances, End of Period $ — $ 47 |
INSURANCE LIABILITIES (Tables)
INSURANCE LIABILITIES (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Insurance [Abstract] | |
GMDB and GMIB Liabilities and Other Policyholder's Liabilities | The following table summarizes the direct GMDB and GMIB without a n o-lapse guarantee rider (“NLG”) feature liabilities, before reinsurance ceded, reflected in the consolidated balance sheets in Future policy benefits and other policyholders’ liabilities: GMDB GMIB Total (in millions) Balance at January 1, 2018 $ 4,080 $ 4,802 $ 8,882 Paid guarantee benefits (200 ) (65 ) (265 ) Other changes in reserve 244 (36 ) 208 Balance at June 30, 2018 $ 4,124 $ 4,701 $ 8,825 Balance at January 1, 2017 $ 3,165 $ 3,870 $ 7,035 Paid guarantee benefits (189 ) (79 ) (268 ) Other changes in reserve 653 784 1,437 Balance at June 30, 2017 $ 3,629 $ 4,575 $ 8,204 |
GMDB Reinsurance Ceded | The following table summarizes the ceded GMDB liabilities, reflected in the consolidated balance sheets in Amounts due from reinsurers: Six Months Ended June 30, 2018 2017 (in millions) Balance, beginning of year $ 2,030 $ 1,558 Paid guarantee benefits (64 ) (91 ) Other changes in reserve (1,869 ) 366 Balance, End of Period $ 97 $ 1,833 |
Derivative Instruments in Hedges, Liabilities, at Fair Value | The liability for the GMxB derivative features liability, the liability for SCS, SIO, MSO and IUL indexed features and the GMIB reinsurance contract asset are considered embedded or freestanding insurance derivatives and are reported at fair value. Summarized in the table below is a summary of the fair value of these liabilities at June 30, 2018 and December 31, 2017 : June 30, December 31, (in millions) GMIBNLG (1) $ 3,419 $ 4,056 SCS, MSO, IUL features (2) 1,891 1,698 GWBL/GMWB (1) 119 130 GIB (1) (41 ) (27 ) GMAB (1) 3 5 Total Embedded derivatives liability (1) $ 5,391 $ 5,862 GMIB reinsurance contract asset (3) $ 1,825 $ 10,488 (1) Reported in future policyholders’ benefits and other policyholders’ liabilities in the consolidated balance sheets. (2) Reported in Policyholders’ account balances in the consolidated balance sheets. (3) Reported in GMIB reinsurance contract asset, at fair value in the consolidated balance sheets. |
Variable Annuity Contracts with GMDB and GMIB Features | The June 30, 2018 values for direct 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 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: Direct Variable Annuity Contract Values June 30, 2018 Return of Premium Ratchet Roll-Up Combo Total (Dollars in millions) GMDB: Account values invested in: General Account $ 13,947 $ 106 $ 63 $ 190 $ 14,306 Separate Accounts $ 45,892 $ 9,348 $ 3,363 $ 34,610 $ 93,213 Net amount at risk, gross $ 176 $ 88 $ 1,980 $ 16,493 $ 18,737 Net amount at risk, net of amounts reinsured $ 176 $ 84 $ 1,367 $ 16,493 $ 18,120 Average attained age of contract holders 51.3 66.7 73.3 68.6 55.2 Percentage of contract holders over age 70 9.8 % 41.6 % 64.3 % 48.3 % 18.4 % 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 $ 23 $ 280 $ 303 Separate Accounts N/A N/A $ 20,928 $ 39,350 $ 60,278 Net amount at risk, gross N/A N/A $ 843 $ 6,275 $ 7,118 Net amount at risk, net of amounts reinsured N/A N/A $ 264 $ 5,700 $ 5,964 Average attained age of policyholders N/A N/A 70.3 68.6 69.0 Weighted average years remaining until annuitization N/A N/A 1.6 0.6 0.7 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 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. Because variable annuity contracts offer both GMDB and GMIB features, GMDB and GMIB amounts are not mutually exclusive: Investment in Separate Account Investment Options June 30, December 31, 2017 (1) (in millions) GMDB: Equity $ 41,308 $ 41,658 Fixed income 5,316 5,469 Balanced 45,736 46,577 Other 853 968 Total $ 93,213 $ 94,672 GMIB: Equity $ 19,107 $ 19,928 Fixed income 2,977 3,150 Balanced 37,894 38,890 Other 300 318 Total $ 60,278 $ 62,286 (1) Amounts previously reported were as follows in millions: (a) GMDB: Equity $78,069 , Fixed Income $2,234 , Balanced $14,084 , and Other $283 ; (b) GMIB: Equity $50,429 , Fixed Income $1,568 , Balanced $10,165 , and Other $124 . |
Summary of No-Lapse Guarantee Liabilities and Other Policyholder's Liabilities | The following table summarizes the NLG liabilities reflected in the General Account in Future policy benefits and other policyholders’ liabilities, the related reinsurance reserve ceded, reflected in Amounts due from reinsurers and deferred cost of reinsurance, reflected in Other assets in the Consolidated balance sheets: Direct Liability Reinsurance Ceded Net (in millions) Balance at January 1, 2018 $ 686 $ (664 ) $ 22 Paid Guaranteed Benefits (9 ) — (9 ) Other changes in reserves 39 (25 ) 14 Balance at June 30, 2018 $ 716 $ (689 ) $ 27 Balance at January 1, 2017 $ 1,197 $ (609 ) $ 588 Other changes in reserves 122 (23 ) 99 Balance at June 30, 2017 $ 1,319 $ (632 ) $ 687 |
FAIR VALUE DISCLOSURES (Tables)
FAIR VALUE DISCLOSURES (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on Recurring Basis | Assets and liabilities measured at fair value on a recurring basis are summarized below. At June 30, 2018 and December 31, 2017 , no assets were required to be measured at fair value on a non-recurring basis. Fair value measurements are required on a non-recurring basis for certain assets, including goodwill 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. The Company recognizes transfers between valuation levels at the beginning of the reporting period. Fair Value Measurements at June 30, 2018 Level 1 Level 2 Level 3 Total (in millions) Assets: Investments: Fixed maturities, available-for-sale: Public Corporate $ — $ 17,226 $ 75 $ 17,301 Private Corporate — 5,868 1,077 6,945 U.S. Treasury, government and agency — 13,903 — 13,903 States and political subdivisions — 424 38 462 Foreign governments — 447 — 447 Residential mortgage-backed (1) — 221 — 221 Asset-backed (2) — 79 538 617 Redeemable preferred stock 176 322 — 498 Subtotal 176 38,490 1,728 40,394 Other equity investments 12 — — 12 Trading securities 493 13,407 — 13,900 Other invested assets: Short-term investments — 442 — 442 Assets of consolidated VIEs/VOEs 73 226 29 328 Swaps — 380 — 380 Credit Default Swaps — 23 — 23 Futures 1 — — 1 Options — 2,077 — 2,077 Subtotal 74 3,148 29 3,251 Cash equivalents 4,974 — — 4,974 Segregated securities — 1,289 — 1,289 GMIB reinsurance contract asset — — 1,825 1,825 Separate Accounts’ assets 117,571 2,763 361 120,695 Total Assets $ 123,300 $ 59,097 $ 3,943 $ 186,340 Liabilities GMxB derivative features’ liability $ — $ — $ 3,500 $ 3,500 SCS, SIO, MSO and IUL indexed features’ liability — 1,891 — 1,891 Liabilities of consolidated VIEs/VOEs — 3 — 3 Contingent payment arrangements — — 11 11 Total Liabilities $ — $ 1,894 $ 3,511 $ 5,405 (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, 2017 Level 1 Level 2 Level 3 Total (in millions) Assets: Investments: Fixed maturities, available-for-sale: Public Corporate $ — $ 14,298 $ 47 $ 14,345 Private Corporate — 6,045 1,092 7,137 U.S. Treasury, government and agency — 13,135 — 13,135 States and political subdivisions — 441 40 481 Foreign governments — 409 — 409 Residential mortgage-backed (1) — 251 — 251 Asset-backed (2) — 88 8 96 Redeemable preferred stock 180 324 — 504 Subtotal 180 34,991 1,187 36,358 Other equity investments 13 — 1 14 Trading securities 467 12,161 — 12,628 Other invested assets: Short-term investments — 768 — 768 Assets of consolidated VIEs/VOEs 1,060 215 27 1,302 Swaps — 15 — 15 Credit Default Swaps — 33 — 33 Futures (2 ) — — (2 ) Options — 1,907 — 1,907 Subtotal 1,058 2,938 27 4,023 Cash equivalents 2,360 — — 2,360 Segregated securities — 825 — 825 GMIB reinsurance contract asset — — 10,488 10,488 Separate Accounts’ assets 118,983 2,983 349 122,315 Total Assets $ 123,061 $ 53,898 $ 12,052 $ 189,011 Liabilities: GMxB derivative features’ liability $ — $ — $ 4,164 $ 4,164 SCS, SIO, MSO and IUL indexed features’ liability — 1,698 — 1,698 Liabilities of consolidated VIEs/VOEs 670 22 — 692 Contingent payment arrangements — — 11 11 Total Liabilities $ 670 $ 1,720 $ 4,175 $ 6,565 (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 three and six months ended June 30, 2018 and 2017 , respectively: Level 3 Instruments Fair Value Measurements Corporate State and Commercial Asset- (in millions) Balance, April 1, 2018 $ 1,229 $ 39 $ — $ 7 Total gains (losses), realized and unrealized, included in: Income (loss) as: Net investment income (loss) 3 — — — Investment gains (losses), net — — — — Subtotal 3 — — — Other comprehensive income (loss) 6 — — (1 ) Purchases 27 — — 533 Sales (99 ) (1 ) — (1 ) Settlements — — — — Transfers into Level 3 (1) (2 ) — — — Transfers out of Level 3 (1) (12 ) — — — Balance, June 30, 2018 $ 1,152 $ 38 $ — $ 538 Balance, April 1, 2017 $ 1,014 $ 42 $ 324 $ 31 Total gains (losses), realized and unrealized, included in: Income (loss) as: Net investment income (loss) 3 — 1 — Investment gains (losses), net — — (9 ) 15 Subtotal 3 — (8 ) 15 Other comprehensive income (loss) (51 ) — 7 (11 ) Purchases 169 — — — Sales (39 ) — (33 ) (18 ) Transfers into Level 3 (1) 6 — — — Transfers out of Level 3 (1) (34 ) — — (5 ) Balance, June 30, 2017 $ 1,068 $ 42 $ 290 $ 12 Corporate State and Political Sub- divisions Commercial Mortgage- backed Asset- backed (in millions) Balance, January 1, 2018 $ 1,139 $ 40 $ — $ 8 Total gains (losses), realized and unrealized, included in: Income (loss) as: Net investment income (loss) 5 — — — Investment gains (losses), net — — — — Subtotal 5 — — — Other comprehensive income (loss) (14 ) (1 ) — (1 ) Purchases 200 — — 533 Sales (215 ) (1 ) — (2 ) Settlements — — — — Transfers into Level 3 (1) 65 — — — Transfers out of Level 3 (1) (28 ) — — — Balance, June 30, 2018 $ 1,152 $ 38 $ — $ 538 Balance, January 1, 2017 $ 845 $ 42 $ 349 $ 24 Total gains (losses), realized and unrealized, included in: Income (loss) as: Net investment income (loss) 4 — 1 — Investment gains (losses), net — — (20 ) 15 Subtotal 4 — (19 ) 15 Other comprehensive income (loss) (6 ) — 19 (7 ) Purchases 322 — — — Sales (105 ) — (59 ) (19 ) Transfers into Level 3 (1) 13 — — — Transfers out of Level 3 (1) (5 ) — — (1 ) Balance, June 30, 2017 $ 1,068 $ 42 $ 290 $ 12 Redeemable Other (2) GMIB Separate GMxB Derivative Features Liability Contingent (in millions) Balance, April 1, 2018 $ — $ 38 $ 9,673 $ 357 $ (3,804 ) $ (11 ) Total gains (losses), realized and unrealized, included in: Income (loss) as: Net investment income (loss) — — — — — — Investment gains (losses), net — (1 ) — 7 — — Net derivative gains (losses) — — (382 ) — 407 — Subtotal — (1 ) (382 ) 7 407 — Other comprehensive income (loss) — — — — — — Purchases (2) — 2 18 (1 ) (104 ) — Sales (3) — (2 ) (21 ) — 1 — Settlements (4)(5) — — (7,463 ) (2 ) — — Activity related to consolidated VIEs — (3 ) — — — — Transfers into Level 3 (1) — — — — — — Transfers out of Level 3 (1) — (5 ) — — — — Balance, June 30, 2018 $ — $ 29 $ 1,825 $ 361 $ (3,500 ) $ (11 ) Balance, April 1, 2017 $ 1 $ 55 $ 9,797 $ 325 $ (4,906 ) $ (17 ) Total gains (losses), realized and unrealized, included in: Income (loss) as: Net investment income (loss) — — — — — — Investment gains (losses), net — — — 8 — — Net derivative gains (losses) — — 1,426 — 231 — Subtotal — — 1,426 8 231 — Other comprehensive income (loss) — — — — — — Purchases (2) — — 73 2 (80 ) — Sales (3) — — (36 ) (1 ) — — Settlements (4) — — — (1 ) — — Activity related to consolidated VIEs — (7 ) — — — — Transfers into Level 3 (1) — — — — — — Transfers out of Level 3 (1) — — — — — — Balance, June 30, 2017 $ 1 $ 48 $ 11,260 $ 333 $ (4,755 ) $ (17 ) Redeemable Preferred Stock Other Equity Investments (2) GMIB Reinsurance Asset Separate Accounts Assets GMxB Derivative Features Liability Contingent Payment Arrangement (in millions) Balance, January 1, 2018 — 28 10,488 349 (4,164 ) (11 ) Total gains (losses), realized and unrealized, included in: Income (loss) as: Net investment income (loss) — — — — — Investment gains (losses), net — (1 ) — 14 — — Net derivative gains (losses) — — (1,224 ) — 847 — Subtotal — (1 ) (1,224 ) 14 847 — Other comprehensive income (loss) — — — — — — Purchases (2) — 6 72 2 (186 ) — Sales (3) — (2 ) (48 ) (1 ) 3 — Settlements (4)(5) — — (7,463 ) (3 ) — — Activity related to consolidated VIEs — (2 ) — — — — Transfers into Level 3 (1) — 5 — — — — Transfers out of Level 3 (1) — (5 ) — — — — Balance, June 30, 2018 — 29 1,825 361 (3,500 ) (11 ) Balance, January 1, 2017 1 51 10,314 313 (5,319 ) (18 ) Total gains (losses), realized and unrealized, included in: Income (loss) as: Net investment income (loss) — — — 18 — — Investment gains (losses), net — — — — — — Net derivative gains (losses) — — 893 — 721 — Subtotal — — 893 18 721 — Other comprehensive income (loss) — — — — — — Purchases (2) — 4 110 6 (158 ) — Sales (3) — (1 ) (57 ) (2 ) 1 — Settlements (4) — — — (2 ) — 1 Activity related to consolidated VIEs — (7 ) — — — — Transfers into Level 3 (1) — 1 — — — — Transfers out of Level 3 (1) — — — — — — Balance, June 30, 2017 1 48 11,260 333 (4,755 ) (17 ) (1) Transfers into/out of Level 3 classification are reflected at beginning-of-period fair values. (2) For the GMIB reinsurance contract asset, and GMxB derivative features’ liability, represents attributed fee. (3) For the GMIB reinsurance contract asset, represents recoveries from reinsurers and for GMxB derivative features liability represents benefits paid. (4) For contingent payment arrangements, it represents payments under the arrangement. (5) For GMIB Reinsurance Asset, it represents the settlement of the captive reinsurance transaction. |
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 six months ended June 30, 2018 and 2017 by category for Level 3 assets and liabilities still held at June 30, 2018 and 2017 , respectively: Income (Loss) Investment Net Derivative Gains (losses) OCI (in millions) Level 3 Instruments Six months ended June 30, 2018 Held at June 30, 2018: Change in unrealized gains (losses): Fixed maturities, available-for-sale: Corporate $ — $ — $ (7 ) State and political subdivisions — — (1 ) Commercial mortgage-backed — — — Asset-backed — — (1 ) Subtotal $ — $ — $ (9 ) GMIB reinsurance contracts — (1,224 ) — Separate Accounts’ assets (1) 14 — — GMxB derivative features’ liability — 847 — Total $ 14 $ (377 ) $ (9 ) Level 3 Instruments Six months ended June 30, 2017 Held at June 30, 2017: Change in unrealized gains (losses): Fixed maturities, available-for-sale: Corporate $ — $ — $ (45 ) Commercial mortgage-backed — — 5 Asset-backed — — (11 ) Subtotal $ — $ — $ (51 ) GMIB reinsurance contracts — 893 — Separate Accounts’ assets (1) 18 — — GMxB derivative features’ liability — 721 — Total $ 18 $ 1,614 $ (51 ) (1) There is an investment expense that offsets this investment gain (loss). |
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 June 30, 2018 and December 31, 2017 , respectively. Quantitative Information about Level 3 Fair Value Measurements June 30, 2018 Fair Valuation Significant Range Weighted Average (in millions) Assets: Investments: Fixed maturities, available-for-sale: Corporate $ 31 Matrix pricing model Spread over the industry-specific benchmark yield curve 75 - 565 bps 188 bps 757 Market com-parable companies EBITDA multiples 4.8x - 33.0x 13.0x Separate Account assets 339 Third party appraisal Capitalization rate 4.5% 1 Discounted cash flow Spread over U.S. Treasury curve 228 bps GMIB reinsurance contract asset 1,825 Discounted cash flow Lapse Rates 1.0% - 6.3% Liabilities: GMIBNLG 3,419 Discounted cash flow Non-performance Risk 1.0% GWBL/GMWB 119 Discounted cash flow Lapse Rates 0.9% - 5.7% GIB (41 ) Discounted cash flow Lapse Rates 0.9% - 5.7% GMAB 3 Discounted cash flow Lapse Rates 0.5% - 11.0% Quantitative Information about Level 3 Fair Value Measurements December 31, 2017 Fair Value Valuation Technique Significant Unobservable Input Range Weighted Average (in millions) Assets: Investments: Fixed maturities, available-for-sale: Corporate $ 53 Matrix pricing model Spread over the industry-specific benchmark yield curve 0 -565 bps 125 bps 789 Market comparable companies EBITDA multiples Discount Rate Cash flow Multiples 5.3x-27.9x 12.9x Separate Account assets 326 Third party appraisal Capitalization rate 4.6% 1 Discounted cash flow Spread over U.S. Treasury curve 243 bps GMIB reinsurance contract asset 10,488 Discounted cash flow Lapse Rates 1.0% - 6.3% Liabilities: GMIBNLG 4,056 Discounted cash flow Non-performance Risk 1.0% GWBL/GMWB 130 Discounted cash flow Lapse Rates 0.9% - 5.7% GIB (27 ) Discounted cash flow Lapse Rates 0.9% - 5.7% GMAB 5 Discounted cash flow Lapse Rates 0.5% - 11.0% |
Fair Value Disclosure Financial Instruments Not Carried At Fair Value | The carrying values and fair values at June 30, 2018 and December 31, 2017 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) June 30, 2018: Mortgage loans on real estate $ 11,791 $ — $ — $ 11,536 $ 11,536 Loans to affiliates 800 — 800 — 800 Policyholders’ liabilities: Investment contracts 2,041 — — 2,084 2,084 Funding Agreements 3,013 — 2,937 — 2,937 Policy loans 3,266 — — 4,020 4,020 Short-term debt 515 — 515 — 515 Separate Account Liabilities 7,968 — — 7,968 7,968 December 31, 2017: Mortgage loans on real estate $ 10,935 $ — $ — $ 10,895 $ 10,895 Loans to affiliates 703 — 700 — 700 Policyholders’ liabilities: Investment contracts 2,068 — — 2,170 2,170 Funding Agreements 3,014 — 3,020 — 3,020 Policy loans 3,315 — — 4,210 4,210 Short-term and Long-term debt 769 — 768 — 768 Separate Account Liabilities 7,537 — — 7,537 7,537 |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenues Disaggregated by Category | The table below presents the revenues recognized during the three and six months ended June 30, 2018 and 2017 , disaggregated by category: Three Months Ended Six Months Ended 2018 2017 2017 2018 2017 (in millions) Investment management, advisory and service fees: Base fees $ 722 $ 672 $ 1,448 $ 1,317 Performance-based fees 35 15 41 21 Research services 107 109 221 222 Distribution services 182 171 362 336 Other revenues: Shareholder services 18 19 38 37 Other 6 4 12 8 Total investment management and service fees $ 1,070 $ 990 $ 2,122 $ 1,941 Other income $ 10 $ 9 $ 17 $ 16 |
SHARE-BASED COMPENSATION PROG31
SHARE-BASED COMPENSATION PROGRAMS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Compensation Costs | Compensation costs for the three and six months ended June 30, 2018 and 2017 for share-based payment arrangements as further described herein are as follows: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 (in millions) Performance Shares (1) $ 3.0 $ 9.6 $ 5.6 $ 13.0 Stock Options 1.4 0.7 0.5 0.7 Restricted Unit Awards (2) (5.0 ) 13.6 7.5 21.3 Other Compensation Plans (3) 1.2 — 1.1 — Total Compensation Expenses $ 0.6 $ 23.9 $ 14.7 $ 35.0 (1) Reflects change to performance share retirement rules. Specifically, individuals who retire at any time after the grant date will continue to vest in their 2017 performance shares while individuals who retire prior to March 1, 2019 will forfeit all 2018 performance shares. (2) Reflects a $10.9 million adjustment for awards with graded vesting, service-only conditions from the graded to the straight-line attribution method. (3) Includes Stock Appreciation Rights. |
ACCUMULATED OTHER COMPREHENSI32
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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 Net income (loss). The balances as of June 30, 2018 and 2017 follow: June 30, 2018 2017 (in millions) Unrealized gains (losses) on investments $ (435 ) $ 440 Foreign currency translation adjustments (48 ) (63 ) Defined benefit pension plans (56 ) (45 ) Total accumulated other comprehensive income (loss) (539 ) 332 Less: Accumulated other comprehensive (income) loss attributable to noncontrolling interest 75 99 Accumulated other comprehensive income (loss) attributable to AXA Equitable $ (464 ) $ 431 |
Components of Accumulated Other Comprehensive Income (Loss), Net of Taxes | The components of OCI, net of taxes for the three and six months ended June 30, 2018 and 2017 follow: Three Months Ended Six Months Ended 2018 2017 2018 2017 (in millions) Foreign currency translation adjustments: Foreign currency translation gains (losses) arising during the period $ (8 ) $ (21 ) $ (12 ) $ 14 (Gains) losses reclassified into net income (loss) during the period — — — — Foreign currency translation adjustment (8 ) (21 ) (12 ) 14 Net unrealized gains (losses) on investments: Net unrealized gains (losses) arising during the period (347 ) 312 (1,332 ) 452 (Gains) losses reclassified into net income (loss) during the period (1) 3 21 (67 ) (2 ) Net unrealized gains (losses) on investments (344 ) 333 (1,399 ) 450 Adjustments for policyholders’ liabilities, DAC, insurance liability loss recognition and other 33 (39 ) 347 (64 ) Change in unrealized gains (losses), net of adjustments (net of deferred income tax expense (benefit) of $(83), $158, $(280) and $208) (311 ) 294 (1,052 ) 386 Change in defined benefit plans: Less: reclassification adjustments to net income (loss) for: Net gain (loss) arising during the period (1 ) 1 (5 ) 1 Amortization of net actuarial (gains) losses included in: Amortization of net prior service cost included in net periodic cost — — — — Change in defined benefit plans (net of deferred income tax expense (benefit) of $0, $1, $(1) and $1) (1 ) 1 (5 ) 1 Total other comprehensive income (loss), net of income taxes (320 ) 274 (1,069 ) 401 Less: Other comprehensive (income) loss attributable to noncontrolling interest 14 20 7 13 Other comprehensive income (loss) attributable to AXA Equitable $ (306 ) $ 294 $ (1,062 ) $ 414 (1) See “Reclassification adjustments” in Note 3 . Reclassification amounts presented net of income tax expense (benefit) of $ 1 million, $ 11 million, $ (18) million and $ (1) million , for the three and six months ended June 30, 2018 and 2017 , respectively. |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | The assets received and the assets removed were as follows: As of April 12, 2018 (in millions) Assets Received Assets Removed Assets at fair value: Fixed income securities $ 7,442 Money Market funds 2 Accrued interest 43 Derivatives 282 Cash 1,098 Total $ 8,867 Deferred cost of reinsurance asset $ 1,839 GMDB ceded reserves 2,317 GMIB reinsurance contract asset 7,463 Payable to AXA RE Arizona 273 Total $ 11,892 |
COMMITMENT AND CONTINGENT LIA34
COMMITMENT AND CONTINGENT LIABILITIES (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Restructuring and Related Costs | The restructuring costs and liabilities associated with the Company’s initiatives were as follows: Six Months Ended June 30, Year Ended December 31, 2018 2017 (in millions) Severance Balance, beginning of year $ 23 $ 22 Additions 6 17 Cash payments (4 ) (14 ) Other reductions — (2 ) Balance, end of Year $ 25 $ 23 Six Months Ended June 30, Year Ended December 31, 2018 2017 (in millions) Leases Balance, beginning of year $ 165 $ 170 Expense incurred — 29 Deferred rent 13 10 Payments made (32 ) (48 ) Interest accretion 7 4 Balance, end of year $ 153 $ 165 |
Federal Home Loan Bank, Advances | Outstanding balance at end of period Maturity of Outstanding balance Issued during the period Repaid during the period June 30, 2018: (in millions) Short-term FHLBNY funding agreements $ 500 less than one month $ 3,000 $ 3,000 Long-term FHLBNY funding agreements 1,526 less than 4 years — — 193 Less than 5 years — — 781 greater than five years — — Total long-term funding agreements 2,500 — — Total FHLBNY funding agreements at June 30, 2018 $ 3,000 $ 3,000 $ 3,000 December 31, 2017: Short-term FHLBNY funding agreements $ 500 Less than one month $ 6,000 $ 6,000 Long-term FHLBNY funding agreements 1,244 Less than 4 years 324 — 377 Less than 5 years 303 — 879 Greater than five years 135 — Total long-term funding agreements 2,500 762 — Total FHLBNY funding agreements at December 31, 2017 $ 3,000 $ 6,762 $ 6,000 |
BUSINESS SEGMENT INFORMATION (T
BUSINESS SEGMENT INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | The table below presents operating earnings (loss) by segment and Corporate and Other and a reconciliation to Net income (loss) attributable to AXA Equitable for the three and six months ended June 30, 2018 and 2017 , respectively: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 (in millions) Net income (loss) attributable to AXA Equitable (2,114 ) 1,500 (2,401 ) 1,328 Adjustments related to: Variable annuity product features (1) 516 (1,258 ) 1,252 (785 ) Investment (gains) losses 5 (10 ) (82 ) 1 Loss on the recapture of GMxB business previously ceded to AXA Arizona 2,627 — 2,627 — Net actuarial (gains) losses related to pension and other postretirement benefit obligations 20 21 113 48 Other adjustments 47 22 107 6 Income tax expense (benefit) related to above adjustments (671 ) 444 (832 ) 259 Non-recurring tax items 15 (222 ) 22 (218 ) Non-GAAP Operating Earnings $ 445 $ 497 $ 806 $ 639 Operating earnings (loss) by segment: Individual Retirement $ 399 $ 473 $ 695 $ 610 Group Retirement 49 64 134 113 Investment Management and Research 53 53 104 65 Protection Solutions (1 ) (11 ) (13 ) (39 ) Corporate and Other (1) (55 ) (82 ) (114 ) (110 ) Total $ 445 $ 497 $ 806 $ 639 (1) Includes interest expense of $11 million , $22 million , $6 million , and $11 million , for the three and six months ended June 30, 2018 and 2017 , respectively. |
Reconciliation of Revenue from Segments to Consolidated | The table below presents Segment revenues for the three and six months ended June 30, 2018 and 2017 . Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 (in millions) Segment revenues: Individual Retirement (1) $ 1,053 $ 955 $ 1,690 $ 1,843 Group Retirement (1) 246 203 486 438 Investment Management and Research (2) 843 773 1,752 1,515 Protection Solutions (1) 620 595 1,265 1,229 Corporate and Other (1) 198 232 395 469 Adjustments related to: Variable annuity product features (510 ) 1,759 (1,237 ) 1,287 Investment gains (losses) (5 ) 10 82 (1 ) Other adjustments to segment revenues (6 ) 21 (46 ) 43 Total revenues $ 2,439 $ 4,548 $ 4,387 $ 6,823 (1) Includes investment expenses charged by AB of approximately $16 million , $32 million , $13 million and $24 million for the three and six months ended June 30, 2018 and 2017 , respectively, for services provided to the Company. (2) Inter-segment investment management and other fees of approximately $23 million , $46 million , $18 million and $36 million for the three and six months ended June 30, 2018 and 2017 , respectively, are included in total revenues of the Investment Management and Research segment. |
Reconciliation of Assets from Segment to Consolidated | The table below presents Total assets by segment as of June 30, 2018 and December 31, 2017 : June 30, December 31, (in millions) Total assets by segment: Individual Retirement $ 104,958 $ 120,612 Group Retirement 43,877 40,472 Investment Management and Research 9,182 10,079 Protection Solutions 38,319 34,328 Corporate and Other 22,970 20,494 Total assets $ 219,306 $ 225,985 |
REVISION OF PRIOR PERIOD FINA36
REVISION OF PRIOR PERIOD FINANCIAL STATEMENTS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
Financial Information Affected by Revisions and Change in Accounting Principle | As Previously Reported Impact of Revisions As Revised (in millions) As of March 31, 2018 Assets: DAC $ 4,826 $ (48 ) $ 4,778 Total Assets $ 222,424 $ (48 ) $ 222,376 Liabilities: Other liabilities 3,041 70 3,111 Current and deferred taxes 1,728 (25 ) 1,703 Total Liabilities 202,767 45 202,812 Equity: Retained Earnings 8,824 (93 ) 8,731 AXA Equitable Equity 15,545 (93 ) 15,452 Equity 18,633 (93 ) 18,540 Total Liabilities and Equity $ 222,424 $ (48 ) $ 222,376 As Previously Reported Impact of Revisions As Revised (in millions) Three Months Ended March 31, 2018 Consolidated Statement of Income (Loss): Revenues: Net derivative gains (losses) $ (777 ) $ (83 ) $ (860 ) Total Revenues 2,031 (83 ) 1,948 Benefits and other deductions: Interest credited to policyholders’ account balances $ 338 $ (83 ) $ 255 Compensation and benefits 456 70 526 Amortization of deferred policy acquisition costs, net 10 48 58 Total benefits and other deductions 2,115 35 2,150 Income (loss) from operations, before income taxes (84 ) (118 ) (202 ) Income tax (expense) benefit 44 25 69 Net income (loss) (40 ) (93 ) (133 ) Less: net (income) loss attributable to the noncontrolling interest (154 ) — (154 ) Net income (loss) attributable to AXA Equitable $ (194 ) $ (93 ) $ (287 ) Statements of Comprehensive Income (Loss): Net income (loss) $ (40 ) $ (93 ) $ (133 ) Comprehensive income (loss) (789 ) (93 ) (882 ) Comprehensive income (loss) attributable to AXA Equitable $ (950 ) $ (93 ) $ (1,043 ) As Previously Reported Impact of Revisions As Revised (in millions) Three Months Ended March 31, 2018 Statements of Equity: Retained earnings, beginning of year $ 9,010 $ — $ 9,010 Impact of adoption of revenue recognition standard ASC 606 8 — 8 Net income (loss) (194 ) (93 ) (287 ) Retained earnings, end of period $ 8,824 (93 ) $ 8,731 Total AXA Equitable’s equity, end of period $ 15,545 (93 ) $ 15,452 Total Equity, End of Period $ 18,633 $ (93 ) $ 18,540 As Previously Reported Impact of Revisions As Revised Three Months Ended March 31, 2018 (in millions) Consolidated Statement of Cash Flows: Cash flow from operating activities: Interest credited to policyholders’ account balances $ 338 $ (83 ) 255 Net derivative (gains) loss 777 83 860 Changes in: DAC 10 48 58 Current and deferred income taxes (52 ) (25 ) (77 ) Other, net (122 ) 70 (52 ) Net cash provided by (used in) operating activities $ (21 ) $ — $ (21 ) The following tables present line items for June 30, 2017 financial information that has been affected by the revisions and the change in accounting principle. This information has been corrected from the information previously presented in the Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2017. For these items, the tables detail the amounts as previously reported, the impact upon those line items due to the revisions, as revised after the revisions, the impacts of the change in accounting principle and the amounts as currently revised. As Previously Reported Impact of Revisions As Revised and Adjusted Herein Impact of Accounting Change As Revised (In millions) As of June 30, 2017 Assets: Other equity investments $ 1,477 $ (21 ) $ 1,456 $ — $ 1,456 Other invested assets 2,622 32 2,654 — 2,654 Total investments 62,111 11 62,122 — 62,122 DAC 4,141 247 4,388 525 4,913 Amounts due from reinsurers 4,870 19 4,889 — 4,889 Guaranteed minimum income benefit reinsurance contract asset, at fair value 11,290 (30 ) 11,260 — 11,260 Total Assets $ 214,941 $ 247 $ 215,188 $ 525 $ 215,713 Liabilities: Policyholders' account balance $ 41,531 $ (15 ) $ 41,516 $ — $ 41,516 Future policyholders' benefits and other policyholders' liabilities 26,799 79 26,878 2,801 29,679 Current and deferred taxes 4,000 65 4,065 (798 ) 3,267 Other liabilities 2,531 (9 ) 2,522 — 2,522 Total Liabilities 196,972 120 197,092 2,003 199,095 Equity: Retained Earnings 8,779 150 8,929 (1,450 ) 7,479 Accumulated other comprehensive income (loss) 493 (34 ) 459 (28 ) 431 AXA Equitable Equity 14,635 116 14,751 (1,478 ) 13,273 Noncontrolling interest 2,973 11 2,984 — 2,984 Equity 17,608 127 17,735 (1,478 ) 16,257 Total Liabilities and Equity $ 214,941 $ 247 $ 215,188 $ 525 $ 215,713 As Previously Reported Impact of Revisions As Revised and Adjusted Herein Impact of Accounting Change As Revised (In millions) Three Months Ended June 30, 2017 Statements of Income (Loss): Revenues: Policy charges and fee income $ 865 $ 49 $ 914 $ (68 ) $ 846 Premiums 216 9 225 — 225 Net derivative gains (losses) 1,693 (196 ) 1,497 266 1,763 Total revenues 4,488 (138 ) 4,350 198 4,548 Benefits and other deductions: Policyholders' benefits 1,452 45 1,497 (134 ) 1,363 Amortization of deferred policy acquisition costs, net (82 ) 31 (51 ) 2 (49 ) Interest credited to policyholders’ account balances 321 (113 ) 208 — 208 Other operating costs and expenses 155 (6 ) 149 — 149 Total benefits and other deductions 2,691 (43 ) 2,648 (132 ) 2,516 Income (loss) from operations, before income taxes 1,797 (95 ) 1,702 330 2,032 Income tax (expense) benefit (338 ) 34 (304 ) (115 ) (419 ) Net income (loss) 1,459 (61 ) 1,398 215 1,613 Net income (loss) attributable to AXA Equitable $ 1,346 $ (61 ) $ 1,285 $ 215 $ 1,500 Statements of Comprehensive Income (Loss): Net income (loss) $ 1,459 $ (61 ) $ 1,398 $ 215 $ 1,613 Change in unrealized gains (losses), net of reclassification adjustment 314 (28 ) 286 8 294 Other comprehensive income 294 (28 ) 266 8 274 Comprehensive income (loss) 1,753 (89 ) 1,664 223 1,887 Comprehensive income (loss) attributable to AXA Equitable $ 1,660 $ (89 ) $ 1,571 $ 223 $ 1,794 As Previously Reported Impact of Revisions As Revised and Adjusted Herein Impact of Accounting Change As Revised (in millions) Six Months Ended June 30, 2017 Statements of Income (Loss): Revenues: Policy charges and fee income $ 1,761 $ 72 $ 1,833 $ (135 ) $ 1,698 Premiums 441 16 457 — 457 Net derivative gains (losses) 969 (332 ) 637 725 1,362 Total revenues 6,477 (244 ) 6,233 590 6,823 Benefits and other deductions: Policyholders' benefits 2,343 60 2,403 (65 ) 2,338 Interest credited to policyholders' account balances 658 (210 ) 448 — 448 Amortization of deferred policy acquisition costs, net 43 (66 ) (23 ) 3 (20 ) Other operating costs and expenses 539 (9 ) 530 — 530 Total benefits and other deductions 5,253 (225 ) 5,028 (62 ) 4,966 Income (loss) from operations, before income taxes 1,224 (19 ) 1,205 652 1,857 Income tax (expense) benefit (78 ) 8 (70 ) (228 ) (298 ) Net income (loss) 1,146 (11 ) 1,135 424 1,559 Net income (loss) attributable to AXA Equitable $ 915 $ (11 ) $ 904 $ 424 $ 1,328 Statements of Comprehensive Income (Loss): Net income (loss) $ 1,146 $ (11 ) $ 1,135 $ 424 $ 1,559 Change in unrealized gains (losses), net of reclassification adjustment 458 (48 ) 410 (24 ) 386 Other comprehensive income 473 (48 ) 425 (24 ) 401 Comprehensive income (loss) 1,619 (59 ) 1,560 400 1,960 Comprehensive income (loss) attributable to AXA Equitable $ 1,401 $ (59 ) $ 1,342 $ 400 $ 1,742 As Previously Reported Impact of Revisions As Revised and Adjusted Herein Impact of Accounting Change As Revised (In millions) Six Months Ended June 30, 2017 Statements of Equity: Retained earnings, beginning of year $ 7,864 $ 161 $ 8,025 $ (1,874 ) $ 6,151 Net income (loss) 915 (11 ) 904 424 1,328 Retained earnings, end of period 8,779 150 8,929 (1,450 ) 7,479 Accumulated other comprehensive income, beginning of year 7 14 21 (4 ) 17 Other comprehensive income (loss) 486 (48 ) 438 (24 ) 414 Accumulated other comprehensive income, end of period 493 (34 ) 459 (28 ) 431 Total AXA Equitable’s equity, end of period 14,635 116 14,751 (1,478 ) 13,273 Noncontrolling interest, beginning of year 3,085 11 3,096 — 3,096 Noncontrolling interest, end of period 2,973 11 2,984 — 2,984 Total Equity, End of Period $ 17,608 $ 127 $ 17,735 $ (1,478 ) $ 16,257 As Previously Reported Impact of Revisions As Revised and Adjusted Herein Impact of Accounting Change As Revised (in millions) Six Months Ended June 30, 2017 Statements of Cash flows: Cash flow from operating activities: Net income (loss) $ 1,146 $ (11 ) $ 1,135 $ 424 $ 1,559 Policy charges and fee income (1,761 ) (72 ) (1,833 ) 135 (1,698 ) Interest credited to policyholders’ account balances 658 (210 ) 448 — 448 Net derivative (gains) loss (969 ) 332 (637 ) (725 ) (1,362 ) Changes in: Future policy benefits 1,381 (13 ) 1,368 (65 ) 1,303 Reinsurance recoverable (251 ) 57 (194 ) — (194 ) Deferred policy acquisition costs 43 (66 ) (23 ) 3 (20 ) Current and deferred income taxes (16 ) (8 ) (24 ) 228 204 Other 93 (9 ) 84 — 84 Net cash provided by (used in) operating activities $ (75 ) $ — $ (75 ) $ — $ (75 ) The following tables present line items for March 31, 2017 financial information that has been affected by the revisions and the change in accounting principle. This information has been corrected from the information previously presented in the Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2017. For these items, the tables detail the amounts as previously reported, the impact upon those line items due to the revisions, as revised after the revisions, the impacts of the change in accounting principle and the amounts as currently revised. As Previously Reported Impact of Revisions As Revised and Adjusted Herein Impact of Accounting Change As Revised (In millions) As of March 31, 2017 Assets: Other equity investments $ 1,463 $ (23 ) $ 1,440 $ — $ 1,440 Other invested assets 2,050 34 2,084 — 2,084 Total investments 60,406 11 60,417 — 60,417 DAC 4,068 367 4,435 526 4,961 Amounts due from reinsurers 4,639 8 4,647 — 4,647 Guaranteed minimum income benefit 9,795 3 9,798 — 9,798 Total Assets $ 209,098 $ 389 $ 209,487 $ 526 $ 210,013 Liabilities: Policyholders' account balance $ 40,308 $ (16 ) $ 40,292 $ — $ 40,292 Future policyholders' benefits and other policyholders' liabilities 25,496 51 25,547 3,144 28,691 Current and deferred taxes 3,523 120 3,643 (917 ) 2,726 Other liabilities 2,496 (3 ) 2,493 — 2,493 Total Liabilities 192,712 152 192,864 2,227 195,091 Equity: Retained Earnings 7,411 232 7,643 (1,665 ) 5,978 Accumulated other comprehensive income (loss) 179 (6 ) 173 (36 ) 137 AXA Equitable Equity 12,934 226 13,160 (1,701 ) 11,459 Noncontrolling interest 3,035 11 3,046 — 3,046 Equity 15,969 237 16,206 (1,701 ) 14,505 Total Liabilities and Equity $ 209,098 $ 389 $ 209,487 $ 526 $ 210,013 As Previously Reported Impact of Revisions As Revised and Adjusted Herein Impact of Accounting Change As Revised (In millions) Three Months Ended March 31, 2017 Statements of Income (Loss): Revenues: Policy charges and fee income $ 896 $ 23 $ 919 $ (67 ) $ 852 Premiums 225 7 232 — 232 Net derivative gains (losses) (724 ) (137 ) (861 ) 459 (402 ) Total revenues 1,989 (107 ) 1,882 392 2,274 Benefits and other deductions: Policyholders' benefits 891 15 906 69 975 Interest credited to policyholders' account balances 337 (98 ) 239 — 239 Amortization of deferred policy acquisition costs, net 125 (97 ) 28 1 29 Other operating costs and expenses 384 (3 ) 381 — 381 Total benefits and other deductions 2,562 (183 ) 2,379 70 2,449 Income (loss) from operations, before income taxes (573 ) 76 (497 ) 322 (175 ) Income tax (expense) benefit 260 (26 ) 234 (113 ) 121 Net income (loss) (313 ) 50 (263 ) 209 (54 ) Net income (loss) attributable to AXA Equitable $ (431 ) $ 50 $ (381 ) $ 209 $ (172 ) Statements of Comprehensive Income (Loss): Net income (loss) $ (313 ) $ 50 $ (263 ) $ 209 $ (54 ) Change in unrealized gains (losses), net of reclassification adjustment 144 (20 ) 124 (32 ) 92 Total other comprehensive income (loss), net of income taxes 179 (20 ) 159 (32 ) 127 Comprehensive income (loss) (134 ) 30 (104 ) 177 73 Comprehensive income (loss) attributable to AXA Equitable $ (259 ) $ 30 $ (229 ) $ 177 $ (52 ) As Previously Reported Impact of Revisions As Revised and Adjusted Herein Impact of Accounting Change As Revised (In millions) Three Months Ended March 31, 2017 Statements of Equity: Retained earnings, beginning of year $ 7,842 $ 183 $ 8,025 $ (1,874 ) $ 6,151 Net income (loss) (431 ) 50 (381 ) 209 (172 ) Retained earnings, end of period 7,411 233 7,644 (1,665 ) 5,979 Accumulated other comprehensive income, beginning of year 7 14 21 (4 ) 17 Other comprehensive income (loss) 172 (20 ) 152 (32 ) 120 Accumulated other comprehensive income, end of period 179 (6 ) 173 (36 ) 137 Total AXA Equitable’s equity, end of period 12,934 227 13,161 (1,701 ) 11,460 Noncontrolling interest, beginning of year 3,085 11 3,096 — 3,096 Noncontrolling interest, end of period 3,035 11 3,046 — 3,046 Total Equity, End of Period $ 15,969 $ 238 $ 16,207 $ (1,701 ) $ 14,506 As Previously Reported Impact of Revisions As Revised and Adjusted Herein Impact of Accounting Change As Revised (In millions) Three Months Ended March 31, 2017 Statements of Cash flows: Net income (loss) $ (313 ) $ 50 $ (263 ) $ 209 $ (54 ) Policy charges and fee income (896 ) (23 ) (919 ) 67 (852 ) Interest credited to policyholders’ account balances 337 (98 ) 239 — 239 Net derivative (gains) loss 724 137 861 (459 ) 402 Changes in: Deferred policy acquisition costs 125 (97 ) 28 1 29 Future policy benefits 185 (13 ) 172 69 241 Reinsurance recoverable (44 ) 21 (23 ) — (23 ) Current and deferred income taxes (327 ) 26 (301 ) 113 (188 ) Other 154 (3 ) 151 — 151 Net cash provided by (used in) operating activities $ 18 $ — $ 18 $ — $ 18 As Previously Reported Impact of Revisions As Revised For the Year ended December 31, 2017 (in millions) Consolidated Statement of Income (Loss): Revenues: Net derivative gains (losses) 890 (119 ) $ 771 Total revenues 11,733 $ (119 ) 11,614 Benefits and other deductions: Interest credited to Policyholder’s account balances 1,040 $ (119 ) 921 Total benefits and other deductions $ 9,478 $ (119 ) $ 9,359 As Previously Reported Impact of Revisions As Revised For the Year ended December 31, 2017 (in millions) Consolidated Statement of Cash Flows: Cash flow from operating activities: Interest credited to policyholders’ account balances $ 1,040 $ (119 ) $ 921 Net derivative (gains) loss (890 ) 119 (771 ) Net cash provided by (used in) operating activities $ 1,077 $ — $ 1,077 As Previously Reported Impact of Revisions As Revised For the Year ended December 31, 2016 (in millions) Consolidated Statement of Income (Loss): Revenues: Net derivative gains (losses) $ (1,211 ) $ (124 ) $ (1,335 ) Total revenues 9,138 $ (124 ) 9,014 Benefits and other deductions: Interest credited to Policyholder’s account balances 1,029 $ (124 ) 905 Total benefits and other deductions 8,516 $ (124 ) 8,392 As Previously Reported Impact of Revisions As Revised For the Year ended December 31, 2016 (in millions) Consolidated Statement of Cash Flows: Cash flow from operating activities: Interest credited to policyholders’ account balances $ 1,029 $ (124 ) $ 905 Net derivative (gains) loss 1,211 124 1,335 Net cash provided by (used in) operating activities $ (461 ) $ — $ (461 ) |
ORGANIZATION (Details)
ORGANIZATION (Details) - segment | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
Number of reportable segments | 4 | |
Number of operating segments | 4 | |
Parent Company | ||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
Economic interest in subsidiary (as a percent) | 64.70% | 46.30% |
AXA Equitable | ||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
Economic interest in subsidiary (as a percent) | 28.80% | 29.30% |
SIGNIFICANT ACCOUNTING POLICI38
SIGNIFICANT ACCOUNTING POLICIES - IMPACT OF NEW ACCOUNTING PRONOUNCEMENTS (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||||||
Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Sep. 30, 2017 | Jan. 01, 2018 | Dec. 31, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||
Policyholders’ benefits | $ 1,339 | $ 907 | $ 1,363 | $ 975 | $ 1,828 | $ 2,338 | $ 3,246 | |||
Retained earnings | 6,617 | $ 8,731 | 7,476 | 7,479 | 5,978 | 6,617 | 7,479 | 7,476 | $ 9,010 | |
Noncontrolling interest | 3,039 | 2,984 | 3,046 | 3,039 | 2,984 | $ 3,095 | ||||
Amortization of deferred cost of reinsurance asset | 1,885 | (171) | ||||||||
Amortization of deferred policy acquisition costs | 31 | 58 | (12) | (49) | 29 | 89 | (20) | (32) | ||
Net income (loss) | $ (1,958) | $ (133) | $ 121 | 1,613 | $ (54) | $ (2,091) | $ 1,559 | $ 1,679 | ||
Accounting Standards Update 2016-01 | ||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||
Equity securities, fair value | $ 13 | |||||||||
Difference Between Revenue Guidance In Effect Before And After Topic 606 | Accounting Standards Update 2014-09 | ||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||
Retained earnings | 8 | |||||||||
Noncontrolling interest | 25 | |||||||||
Noncontrolling interest, cumulative contributions received | 78 | |||||||||
Noncontrolling interest, cumulative contributions paid | $ 43 | |||||||||
Long-term Lapses Partial Withdrawal Rates And Election Assumptions Updates | ||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||
Policyholders’ benefits | 602 | |||||||||
Increase (decrease) in the fair value of the reinsurance contract asset | 1,532 | |||||||||
Amortization of deferred cost of reinsurance asset | (226) | |||||||||
Amortization of deferred policy acquisition costs | (32) | |||||||||
Net income (loss) | 1,064 | |||||||||
GMIB | Long-term Lapses Partial Withdrawal Rates And Election Assumptions Updates | ||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||
Increase (decrease) in fair value of policy liability | $ 447 |
SIGNIFICANT ACCOUNTING POLICI39
SIGNIFICANT ACCOUNTING POLICIES - TEXTUAL (Details) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Jun. 30, 2018USD ($)joint_venture | Mar. 31, 2018USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Jun. 30, 2018USD ($)joint_venture | Jun. 30, 2017USD ($) | Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($) | ||
Variable Interest Entity [Line Items] | ||||||||||
Other equity investments | $ 1,328 | $ 1,456 | $ 1,440 | $ 1,328 | $ 1,456 | $ 1,351 | ||||
Real estate held for production of income | 53 | 53 | 390 | |||||||
Redeemable noncontrolling interest | [1] | 146 | 146 | 626 | ||||||
TCJA, Transition tax for accumulated foreign earnings income tax expense | 23 | |||||||||
Policyholders’ benefits | 1,339 | $ 907 | 1,363 | 975 | 1,828 | 2,338 | $ 3,246 | |||
Future policy benefits and other policyholders’ liabilities | 28,122 | 29,452 | 29,679 | 28,691 | 28,122 | 29,679 | 29,452 | $ 29,034 | ||
Amortization of deferred cost of reinsurance assets | (1,885) | 171 | ||||||||
Amortization of deferred policy acquisition costs | 31 | $ 58 | (12) | (49) | 29 | 89 | (20) | (32) | ||
Net income (loss) | (1,958) | $ (133) | $ 121 | 1,613 | $ (54) | (2,091) | $ 1,559 | $ 1,679 | ||
Variable Interest Entity, Not Primary Beneficiary | ||||||||||
Variable Interest Entity [Line Items] | ||||||||||
Variable interest entity, unused commitments | 771 | 771 | ||||||||
Variable Interest Entity, Not Primary Beneficiary | Other Equity Investments | ||||||||||
Variable Interest Entity [Line Items] | ||||||||||
Variable Interest Entity, nonconsolidated net assets | 166,099 | 166,099 | ||||||||
Variable interest, maximum loss exposure | 1,145 | 1,145 | ||||||||
Variable Interest Entity, Not Primary Beneficiary | Insurance | ||||||||||
Variable Interest Entity [Line Items] | ||||||||||
Other equity investments | 1,145 | 1,145 | ||||||||
Variable Interest Entity, Not Primary Beneficiary | Investment Management | ||||||||||
Variable Interest Entity [Line Items] | ||||||||||
Variable Interest Entity, nonconsolidated net assets | 47,600 | 47,600 | ||||||||
Variable interest, maximum loss exposure | $ 6 | $ 6 | ||||||||
Variable Interest Entity, Primary Beneficiary | ||||||||||
Variable Interest Entity [Line Items] | ||||||||||
Number of consolidated real estate joint ventures | joint_venture | 1 | 1 | ||||||||
Variable interest entity, consolidated, assets | $ 37 | $ 37 | ||||||||
Variable Interest Entity, Primary Beneficiary, Aggregated Disclosure | ||||||||||
Variable Interest Entity [Line Items] | ||||||||||
Real estate held for production of income | $ 16 | $ 16 | ||||||||
Number of nonconsolidated real estate joint ventures | joint_venture | 2 | 2 | ||||||||
Variable Interest Entity, Primary Beneficiary | ||||||||||
Variable Interest Entity [Line Items] | ||||||||||
Variable interest entity, consolidated, assets | $ 225 | $ 225 | ||||||||
Variable interest entity, nonconsolidated, liabilities | 5 | 5 | ||||||||
Redeemable noncontrolling interest | 93 | 93 | ||||||||
Voting Interest Entities Member | Variable Interest Entity, Primary Beneficiary | ||||||||||
Variable Interest Entity [Line Items] | ||||||||||
Variable interest entity, consolidated, assets | 108 | 108 | ||||||||
Variable interest entity, nonconsolidated, liabilities | 2 | 2 | ||||||||
Noncontrolling interest in variable interest entity | $ 10 | $ 10 | ||||||||
United States | ||||||||||
Variable Interest Entity [Line Items] | ||||||||||
Amortization period, front-end load commissions | 5 years 6 months | |||||||||
Non-US | ||||||||||
Variable Interest Entity [Line Items] | ||||||||||
Amortization period, front-end load commissions | 4 years | |||||||||
Long-term Lapses Partial Withdrawal Rates And Election Assumptions Updates | ||||||||||
Variable Interest Entity [Line Items] | ||||||||||
Policyholders’ benefits | 602 | |||||||||
Increase (decrease) in the fair value of the reinsurance contract asset | 1,532 | |||||||||
Amortization of deferred cost of reinsurance assets | 226 | |||||||||
Amortization of deferred policy acquisition costs | (32) | |||||||||
Net income (loss) | $ 1,064 | |||||||||
[1] | See Note 2 for details of balances with variable interest entities. |
INVESTMENTS - AVAILABLE FOR SAL
INVESTMENTS - AVAILABLE FOR SALE SECURITIES (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 40,638 | |
Fair Value | 40,394 | $ 36,358 |
Amortized Cost | 34,988 | |
Gross Unrealized Gains | 1,774 | |
Gross Unrealized Losses | 247 | |
Fair Value | 36,515 | |
OTTI in AOCI | 2 | |
Amortized Cost | ||
Due in one year or less | 1,683 | |
Due in years two through five | 7,582 | |
Due in years six through ten | 12,810 | |
Due after ten years | 17,262 | |
Subtotal | 39,337 | |
Fair Value | ||
Due in one year or less | 1,688 | |
Due in years two through five | 7,664 | |
Due in years six through ten | 12,641 | |
Due after ten years | 17,065 | |
Subtotal | 39,058 | |
Total | 40,394 | |
Public corporate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 17,368 | |
Gross Unrealized Gains | 356 | |
Gross Unrealized Losses | 423 | |
Fair Value | 17,301 | |
Amortized Cost | 13,645 | |
Gross Unrealized Gains | 725 | |
Gross Unrealized Losses | 25 | |
Fair Value | 14,345 | |
OTTI in AOCI | 0 | 0 |
Private corporate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 7,004 | |
Gross Unrealized Gains | 88 | |
Gross Unrealized Losses | 147 | |
Fair Value | 6,945 | |
Amortized Cost | 6,951 | |
Gross Unrealized Gains | 217 | |
Gross Unrealized Losses | 31 | |
Fair Value | 7,137 | |
OTTI in AOCI | 0 | 0 |
U.S. Treasury, government and agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 14,112 | |
Gross Unrealized Gains | 206 | |
Gross Unrealized Losses | 415 | |
Fair Value | 13,903 | |
Amortized Cost | 12,644 | |
Gross Unrealized Gains | 676 | |
Gross Unrealized Losses | 185 | |
Fair Value | 13,135 | |
OTTI in AOCI | 0 | 0 |
State and Political Sub- divisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 413 | |
Gross Unrealized Gains | 50 | |
Gross Unrealized Losses | 1 | |
Fair Value | 462 | |
Amortized Cost | 414 | |
Gross Unrealized Gains | 67 | |
Gross Unrealized Losses | 0 | |
Fair Value | 481 | |
OTTI in AOCI | 0 | 0 |
Foreign governments | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 440 | |
Gross Unrealized Gains | 18 | |
Gross Unrealized Losses | 11 | |
Fair Value | 447 | |
Amortized Cost | 387 | |
Gross Unrealized Gains | 27 | |
Gross Unrealized Losses | 5 | |
Fair Value | 409 | |
OTTI in AOCI | 0 | 0 |
Residential mortgage-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 211 | |
Gross Unrealized Gains | 10 | |
Gross Unrealized Losses | 0 | |
Fair Value | 221 | |
Amortized Cost | 236 | |
Gross Unrealized Gains | 15 | |
Gross Unrealized Losses | 0 | |
Fair Value | 251 | |
OTTI in AOCI | 0 | 0 |
Amortized Cost | ||
Without single maturity date | 211 | |
Fair Value | ||
Without single maturity date | 221 | |
Asset- backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 621 | |
Gross Unrealized Gains | 1 | |
Gross Unrealized Losses | 5 | |
Fair Value | 617 | |
Amortized Cost | 93 | |
Gross Unrealized Gains | 3 | |
Gross Unrealized Losses | 0 | |
Fair Value | 96 | |
OTTI in AOCI | 2 | 2 |
Amortized Cost | ||
Without single maturity date | 621 | |
Fair Value | ||
Without single maturity date | 617 | |
Redeemable preferred stock | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 469 | |
Gross Unrealized Gains | 33 | |
Gross Unrealized Losses | 4 | |
Fair Value | 498 | |
Amortized Cost | 461 | |
Gross Unrealized Gains | 44 | |
Gross Unrealized Losses | 1 | |
Fair Value | 504 | |
OTTI in AOCI | 0 | 0 |
Amortized Cost | ||
Without single maturity date | 469 | |
Fair Value | ||
Without single maturity date | 498 | |
Total Fixed Maturities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 40,638 | 34,831 |
Gross Unrealized Gains | 762 | |
Gross Unrealized Losses | 1,006 | |
Fair Value | 40,394 | |
Amortized Cost | 40,638 | 34,831 |
Gross Unrealized Gains | 1,774 | |
Gross Unrealized Losses | 247 | |
Fair Value | 36,358 | |
OTTI in AOCI | $ 2 | 2 |
Equity securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 157 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | |
Fair Value | 157 | |
OTTI in AOCI | $ 0 |
INVESTMENTS - CREDIT LOSS IMPAI
INVESTMENTS - CREDIT LOSS IMPAIRMENTS (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Proceeds from sales | $ 373 | $ 121 | $ 3,801 | $ 535 |
Gross gains on sales | 7 | 10 | 134 | 29 |
Gross losses on sales | (14) | (7) | (55) | (27) |
Total OTTI | 0 | (13) | 0 | (13) |
Non-credit losses recognized in OCI | 0 | 0 | 0 | 0 |
Credit losses recognized in net income (loss) | 0 | (13) | 0 | (13) |
Fixed Maturities - Credit Loss Impairments | ||||
Balances, beginning of period | (10) | (147) | (10) | (190) |
Previously recognized impairments on securities that matured, paid, prepaid or sold | 1 | 45 | 1 | 88 |
Recognized impairments on securities impaired to fair value this period | 0 | 0 | 0 | 0 |
Impairments recognized this period on securities not previously impaired | 0 | (13) | 0 | (13) |
Additional impairments this period on securities previously impaired | 0 | 0 | 0 | 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, end of period | $ (9) | $ (115) | $ (9) | $ (115) |
INVESTMENTS - NET UNREALIZED IN
INVESTMENTS - NET UNREALIZED INVESTMENTS (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Net Unrealized Gains (Losses) on Investments | ||||
Unrealized Net Investment Gain and Losses [Line Items] | ||||
Net Unrealized Gains (Losses) | $ (244) | $ 1,527 | ||
Net Unrealized Investment Gains Losses Recognized In Aoci Roll Forward [Abstract] | ||||
Balance, beginning of year | 1,527 | |||
Balance, End of Period | (244) | (244) | ||
Net Unrealized Gains (Losses) on Investments | With OTTI loss | ||||
Unrealized Net Investment Gain and Losses [Line Items] | ||||
Net Unrealized Gains (Losses) | (1) | $ 20 | 1 | $ 19 |
Net Unrealized Investment Gains Losses Recognized In Aoci Roll Forward [Abstract] | ||||
Balance, beginning of year | (1) | 20 | 1 | 19 |
Net investment gains (losses) arising during the period | 0 | (44) | 0 | 5 |
Reclassification adjustment for OTTI losses excluded from Net earnings (loss) | 0 | 0 | 0 | 0 |
Balance, End of Period | 1 | (6) | 1 | (6) |
Net Unrealized Gains (Losses) on Investments | All other | ||||
Unrealized Net Investment Gain and Losses [Line Items] | ||||
Net Unrealized Gains (Losses) | 193 | 606 | 1,526 | 428 |
Net Unrealized Investment Gains Losses Recognized In Aoci Roll Forward [Abstract] | ||||
Balance, beginning of year | 193 | 606 | 1,526 | 428 |
Net investment gains (losses) arising during the period | (441) | 524 | (1,686) | 690 |
Reclassification adjustment for OTTI losses excluded from Net earnings (loss) | 0 | 0 | 0 | 0 |
Balance, End of Period | (245) | 1,145 | (245) | 1,145 |
DAC | With OTTI loss | ||||
Unrealized Net Investment Gain and Losses [Line Items] | ||||
Net Unrealized Gains (Losses) | 0 | (5) | 1 | (1) |
Net Unrealized Investment Gains Losses Recognized In Aoci Roll Forward [Abstract] | ||||
Balance, beginning of year | 0 | (5) | 1 | (1) |
Impact of net unrealized investment gains (losses) on DAC | 0 | (7) | (1) | 3 |
Balance, End of Period | 0 | 2 | 0 | 2 |
DAC | All other | ||||
Unrealized Net Investment Gain and Losses [Line Items] | ||||
Net Unrealized Gains (Losses) | (27) | (143) | (315) | (70) |
Net Unrealized Investment Gains Losses Recognized In Aoci Roll Forward [Abstract] | ||||
Balance, beginning of year | (27) | (143) | (315) | (70) |
Impact of net unrealized investment gains (losses) on DAC | 38 | (57) | 326 | (130) |
Balance, End of Period | 11 | (200) | 11 | (200) |
Policyholders’ Liabilities | With OTTI loss | ||||
Unrealized Net Investment Gain and Losses [Line Items] | ||||
Net Unrealized Gains (Losses) | 0 | (5) | (1) | (10) |
Net Unrealized Investment Gains Losses Recognized In Aoci Roll Forward [Abstract] | ||||
Balance, beginning of year | 0 | (5) | (1) | (10) |
Impact of net unrealized investment gains (losses) on policyholders' liabilities | 0 | (6) | 1 | 11 |
Balance, End of Period | 0 | 1 | 0 | 1 |
Policyholders’ Liabilities | All other | ||||
Unrealized Net Investment Gain and Losses [Line Items] | ||||
Net Unrealized Gains (Losses) | (124) | (162) | (232) | (188) |
Net Unrealized Investment Gains Losses Recognized In Aoci Roll Forward [Abstract] | ||||
Balance, beginning of year | (124) | (162) | (232) | (188) |
Impact of net unrealized investment gains (losses) on policyholders' liabilities | 14 | (29) | 122 | (3) |
Balance, End of Period | (110) | (191) | (110) | (191) |
Deferred Income Tax Asset (Liability) | With OTTI loss | ||||
Unrealized Net Investment Gain and Losses [Line Items] | ||||
Net Unrealized Gains (Losses) | (5) | (4) | (5) | (3) |
Net Unrealized Investment Gains Losses Recognized In Aoci Roll Forward [Abstract] | ||||
Balance, beginning of year | (5) | (4) | (5) | (3) |
Impact of net unrealized investment gains (losses) on deferred income taxes | (5) | (5) | 5 | 4 |
Balance, End of Period | 0 | 1 | 0 | 1 |
Deferred Income Tax Asset (Liability) | All other | ||||
Unrealized Net Investment Gain and Losses [Line Items] | ||||
Net Unrealized Gains (Losses) | (103) | (106) | (300) | (60) |
Net Unrealized Investment Gains Losses Recognized In Aoci Roll Forward [Abstract] | ||||
Balance, beginning of year | (103) | (106) | (300) | (60) |
Impact of net unrealized investment gains (losses) on deferred income taxes | 76 | (157) | 273 | (203) |
Balance, End of Period | (27) | (263) | (27) | (263) |
AOCI Gain (Loss) Related to Net Unrealized Investment Gains (Losses) | With OTTI loss | ||||
Unrealized Net Investment Gain and Losses [Line Items] | ||||
Net Unrealized Gains (Losses) | (6) | 6 | (4) | 5 |
Net Unrealized Investment Gains Losses Recognized In Aoci Roll Forward [Abstract] | ||||
Balance, beginning of year | (6) | 6 | (4) | 5 |
Net investment gains (losses) arising during the period | 0 | (44) | 0 | 5 |
Reclassification adjustment for OTTI losses excluded from Net earnings (loss) | 0 | 0 | 0 | 0 |
Impact of net unrealized investment gains (losses) on DAC | 0 | (7) | (1) | 3 |
Impact of net unrealized investment gains (losses) on deferred income taxes | (5) | (5) | 5 | 4 |
Impact of net unrealized investment gains (losses) on policyholders' liabilities | 0 | (6) | 1 | 11 |
Balance, End of Period | 1 | (2) | 1 | (2) |
AOCI Gain (Loss) Related to Net Unrealized Investment Gains (Losses) | All other | ||||
Unrealized Net Investment Gain and Losses [Line Items] | ||||
Net Unrealized Gains (Losses) | (61) | 195 | 679 | 110 |
Net Unrealized Investment Gains Losses Recognized In Aoci Roll Forward [Abstract] | ||||
Balance, beginning of year | (61) | 195 | 679 | 110 |
Net investment gains (losses) arising during the period | (441) | 524 | (1,686) | 690 |
Reclassification adjustment for OTTI losses excluded from Net earnings (loss) | 0 | 0 | 0 | 0 |
Impact of net unrealized investment gains (losses) on DAC | 38 | (57) | 326 | (130) |
Impact of net unrealized investment gains (losses) on deferred income taxes | 76 | (157) | 273 | (203) |
Impact of net unrealized investment gains (losses) on policyholders' liabilities | 14 | (29) | 122 | (3) |
Balance, End of Period | (371) | 491 | (371) | 491 |
Fixed Maturities | Net Unrealized Gains (Losses) on Investments | With OTTI loss | ||||
Unrealized Net Investment Gain and Losses [Line Items] | ||||
Net Unrealized Gains (Losses) | 1 | 1 | ||
Net Unrealized Investment Gains Losses Recognized In Aoci Roll Forward [Abstract] | ||||
Balance, beginning of year | 1 | |||
Balance, End of Period | 1 | 1 | ||
Fixed Maturities | Net Unrealized Gains (Losses) on Investments | All other | ||||
Unrealized Net Investment Gain and Losses [Line Items] | ||||
Net Unrealized Gains (Losses) | (245) | 1,526 | ||
Net Unrealized Investment Gains Losses Recognized In Aoci Roll Forward [Abstract] | ||||
Balance, beginning of year | 1,526 | |||
Balance, End of Period | (245) | (245) | ||
Fixed Maturities | AOCI Gain (Loss) Related to Net Unrealized Investment Gains (Losses) | With OTTI loss | ||||
Net Unrealized Investment Gains Losses Recognized In Aoci Roll Forward [Abstract] | ||||
Reclassification adjustment for OTTI losses included in Net income (loss) | 2 | 18 | 0 | (30) |
Fixed Maturities | AOCI Gain (Loss) Related to Net Unrealized Investment Gains (Losses) | All other | ||||
Net Unrealized Investment Gains Losses Recognized In Aoci Roll Forward [Abstract] | ||||
Reclassification adjustment for OTTI losses included in Net income (loss) | 3 | 15 | (85) | 27 |
Fixed Maturities | Included in Net income (loss) | With OTTI loss | ||||
Net Unrealized Investment Gains Losses Recognized In Aoci Roll Forward [Abstract] | ||||
Reclassification adjustment for OTTI losses included in Net income (loss) | 2 | 18 | 0 | (30) |
Fixed Maturities | Included in Net income (loss) | All other | ||||
Net Unrealized Investment Gains Losses Recognized In Aoci Roll Forward [Abstract] | ||||
Reclassification adjustment for OTTI losses included in Net income (loss) | $ 3 | $ 15 | $ (85) | $ 27 |
INVESTMENTS - GROSS UNREALIZED
INVESTMENTS - GROSS UNREALIZED LOSSES (Details) $ in Millions | Jun. 30, 2018USD ($)security | Dec. 31, 2017USD ($)security |
Investments, Debt and Equity Securities [Abstract] | ||
Number of fixed maturities in an unrealized loss position greater than 12 months | security | 1,429 | 620 |
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less Than 12 Months, Fair Value | $ 17,661 | $ 4,315 |
Less Than 12 Months, Gross Unrealized Losses | 587 | 23 |
Greater than 12 Months, Fair Value | 4,154 | 4,255 |
Greater Than 12 Months, Gross Unrealized Losses | 419 | 224 |
Total, Fair Value | 21,815 | 8,570 |
Total, Gross Unrealized Losses | 1,006 | 247 |
Public corporate | ||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less Than 12 Months, Fair Value | 9,005 | 1,384 |
Less Than 12 Months, Gross Unrealized Losses | 393 | 9 |
Greater than 12 Months, Fair Value | 501 | 548 |
Greater Than 12 Months, Gross Unrealized Losses | 30 | 16 |
Total, Fair Value | 9,506 | 1,932 |
Total, Gross Unrealized Losses | 423 | 25 |
Private corporate | ||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less Than 12 Months, Fair Value | 2,982 | 718 |
Less Than 12 Months, Gross Unrealized Losses | 97 | 8 |
Greater than 12 Months, Fair Value | 700 | 615 |
Greater Than 12 Months, Gross Unrealized Losses | 50 | 23 |
Total, Fair Value | 3,682 | 1,333 |
Total, Gross Unrealized Losses | 147 | 31 |
U.S. Treasury, government and agency | ||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less Than 12 Months, Fair Value | 4,871 | 2,150 |
Less Than 12 Months, Gross Unrealized Losses | 86 | 6 |
Greater than 12 Months, Fair Value | 2,868 | 3,005 |
Greater Than 12 Months, Gross Unrealized Losses | 329 | 179 |
Total, Fair Value | 7,739 | 5,155 |
Total, Gross Unrealized Losses | 415 | 185 |
State and Political Sub- divisions | ||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less Than 12 Months, Fair Value | 19 | 20 |
Less Than 12 Months, Gross Unrealized Losses | 1 | 0 |
Greater than 12 Months, Fair Value | 0 | 0 |
Greater Than 12 Months, Gross Unrealized Losses | 0 | 0 |
Total, Fair Value | 19 | 20 |
Total, Gross Unrealized Losses | 1 | 0 |
Foreign governments | ||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less Than 12 Months, Fair Value | 128 | 11 |
Less Than 12 Months, Gross Unrealized Losses | 3 | 0 |
Greater than 12 Months, Fair Value | 73 | 73 |
Greater Than 12 Months, Gross Unrealized Losses | 8 | 5 |
Total, Fair Value | 201 | 84 |
Total, Gross Unrealized Losses | 11 | 5 |
Residential mortgage-backed | ||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less Than 12 Months, Fair Value | 14 | 18 |
Less Than 12 Months, Gross Unrealized Losses | 0 | 0 |
Greater than 12 Months, Fair Value | 0 | 0 |
Greater Than 12 Months, Gross Unrealized Losses | 0 | 0 |
Total, Fair Value | 14 | 18 |
Total, Gross Unrealized Losses | 0 | 0 |
Asset- backed | ||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less Than 12 Months, Fair Value | 535 | 7 |
Less Than 12 Months, Gross Unrealized Losses | 5 | 0 |
Greater than 12 Months, Fair Value | 0 | 2 |
Greater Than 12 Months, Gross Unrealized Losses | 0 | 0 |
Total, Fair Value | 535 | 9 |
Total, Gross Unrealized Losses | 5 | 0 |
Redeemable preferred stock | ||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less Than 12 Months, Fair Value | 107 | 7 |
Less Than 12 Months, Gross Unrealized Losses | 2 | 0 |
Greater than 12 Months, Fair Value | 12 | 12 |
Greater Than 12 Months, Gross Unrealized Losses | 2 | 1 |
Total, Fair Value | 119 | 19 |
Total, Gross Unrealized Losses | $ 4 | $ 1 |
INVESTMENTS - TEXTUAL (Details)
INVESTMENTS - TEXTUAL (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Mar. 31, 2018USD ($)joint_venture | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Debt Securities, Available-for-sale [Line Items] | |||||||
Scenarios Where Coverage Needed, Worst Case, Percent | 2.00% | ||||||
Securities sold under agreements to repurchase | $ 1,850 | $ 1,850 | $ 1,887 | ||||
Debt securities exposure in single issuer greater than stated percentage of total investments | 0.50% | 0.50% | |||||
Available-for-sale securities, amortized cost basis | 34,988 | ||||||
Gross unrealized losses of twelve months or more | $ 419 | $ 419 | 224 | ||||
Carrying value of fixed maturities non-income producing | 2 | 2 | |||||
Investment expenses | 13 | $ 10 | 32 | $ 29 | |||
Trading securities, at fair value | 13,900 | 13,900 | 12,628 | ||||
Separate account equity investment carrying value | 50 | 50 | 49 | ||||
Number of real estate joint ventures sold | joint_venture | 2 | ||||||
Total purchase price | $ 143 | ||||||
Pre-tax loss on sale of real estate joint venture | 0.2 | ||||||
Elimination of long-term debt | $ 203 | ||||||
Derecognized US Treasury securities | 3,655 | 3,655 | $ 3,905 | ||||
Proceeds from return swap contract | $ 3,906 | ||||||
Fair value of return swap contracts | 34 | 34 | |||||
Treasury Lock | |||||||
Debt Securities, Available-for-sale [Line Items] | |||||||
Unrealized gain (loss) related to TIPS | 95 | 86 | |||||
Commercial Mortgage Loans | |||||||
Debt Securities, Available-for-sale [Line Items] | |||||||
Mortgage loans classified as nonaccrual | 19 | 19 | 19 | ||||
Other Than Investment Grade | |||||||
Debt Securities, Available-for-sale [Line Items] | |||||||
Available-for-sale securities, amortized cost | $ 1,253 | $ 1,253 | $ 1,309 | ||||
Percentage of available for sale securities | 3.10% | 3.10% | 3.80% | ||||
Public corporate | |||||||
Debt Securities, Available-for-sale [Line Items] | |||||||
Debt securities exposure in single issuer of total investments | $ 200 | $ 200 | $ 182 | ||||
Available-for-sale securities, amortized cost basis | 13,645 | ||||||
Gross unrealized losses of twelve months or more | 30 | 30 | 16 | ||||
Fixed Maturities | |||||||
Debt Securities, Available-for-sale [Line Items] | |||||||
Available-for-sale securities, amortized cost basis | $ 40,638 | 40,638 | 34,831 | ||||
Fixed Maturities | Other Than Investment Grade | |||||||
Debt Securities, Available-for-sale [Line Items] | |||||||
Net unrealized losses | $ (13) | $ (5) |
INVESTMENTS - TRADING SECURITIE
INVESTMENTS - TRADING SECURITIES (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Debt Securities, Trading, Gain (Loss) [Abstract] | ||||
Net investment gains (losses) recognized during the period on securities held at the end of the period | $ (108) | $ 57 | $ (172) | $ 108 |
Net investment gains (losses) recognized on securities sold during the period | (10) | 23 | (9) | 25 |
Unrealized and realized gains (losses) on trading securities arising during the period | (118) | 80 | (181) | 133 |
Interest and dividend income from trading securities | 80 | 49 | 146 | 89 |
Net investment income (loss) from trading securities | $ (38) | $ 129 | $ (35) | $ 222 |
INVESTMENTS - VALUATION ALLOWAN
INVESTMENTS - VALUATION ALLOWANCE FOR MORTGAGE LOANS (Details) - USD ($) | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |||
June 30, Individually Evaluated for Impairment | $ 7,000,000 | $ 8,000,000 | |
Commercial Mortgage Loans | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Beginning balance, January 1, | 8,000,000 | $ 8,000,000 | |
Charge-offs | 0 | 0 | |
Recoveries | (1,000,000) | 0 | |
Provision | 0 | 0 | |
Ending balance, June 30, | 7,000,000 | 8,000,000 | |
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |||
June 30, Individually Evaluated for Impairment | 7,000,000 | $ 8,000,000 | |
Agricultural Mortgage Loans | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Beginning balance, January 1, | 0 | ||
Ending balance, June 30, | $ 0 |
INVESTMENTS - MORTGAGE LOANS (D
INVESTMENTS - MORTGAGE LOANS (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | $ 599 | |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 599 | |
Commercial Mortgage Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 9,168 | $ 8,369 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Financing receivables, recorded investment, past due | 27 | 27 |
Financing receivables, recorded investment, current | 9,141 | 8,342 |
Total Financing Receivables | 9,168 | 8,369 |
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] | ||
Recorded Investment | 0 | 0 |
Unpaid Principal Balance | 0 | 0 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 0 | 0 |
Interest Income Recognized | 0 | 0 |
Commercial Mortgage Loans | With related allowance recorded | ||
Impaired Mortgage Loans [Abstract] | ||
Recorded Investment | 27 | 27 |
Unpaid Principal Balance | 27 | 27 |
Related Allowance | 7 | (8) |
Average Recorded Investment | 27 | 27 |
Interest Income Recognized | 0 | 2 |
Commercial Mortgage Loans | 30-59 Days | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Financing receivables, recorded investment, past due | 0 | 27 |
Commercial Mortgage Loans | 60-89 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 | 27 | 0 |
Commercial Mortgage Loans | Greater than 2.0x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 5,696 | 4,999 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 5,696 | 4,999 |
Commercial Mortgage Loans | 1.8x to 2.0x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 719 | 792 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 719 | 792 |
Commercial Mortgage Loans | 1.5x to 1.8x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 1,781 | 1,609 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 1,781 | 1,609 |
Commercial Mortgage Loans | 1.2x to 1.5x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 793 | 774 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 793 | 774 |
Commercial Mortgage Loans | 1.0x to 1.2x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 179 | 195 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 179 | 195 |
Commercial Mortgage Loans | Less than 1.0x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 0 | 0 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 0 | 0 |
Commercial Mortgage Loans | 0% - 50% | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 1,194 | 1,136 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 1,194 | 1,136 |
Commercial Mortgage Loans | 0% - 50% | Greater than 2.0x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 770 | 742 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 770 | 742 |
Commercial Mortgage Loans | 0% - 50% | 1.8x to 2.0x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 21 | 0 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 21 | 0 |
Commercial Mortgage Loans | 0% - 50% | 1.5x to 1.8x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 330 | 320 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 330 | 320 |
Commercial Mortgage Loans | 0% - 50% | 1.2x to 1.5x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 73 | 74 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 73 | 74 |
Commercial Mortgage Loans | 0% - 50% | 1.0x to 1.2x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 0 | 0 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 0 | 0 |
Commercial Mortgage Loans | 0% - 50% | Less than 1.0x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 0 | 0 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 0 | 0 |
Commercial Mortgage Loans | 50% - 70% | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 7,140 | 6,409 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 7,140 | 6,409 |
Commercial Mortgage Loans | 50% - 70% | Greater than 2.0x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 4,709 | 4,088 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 4,709 | 4,088 |
Commercial Mortgage Loans | 50% - 70% | 1.8x to 2.0x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 588 | 682 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 588 | 682 |
Commercial Mortgage Loans | 50% - 70% | 1.5x to 1.8x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 1,280 | 1,066 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 1,280 | 1,066 |
Commercial Mortgage Loans | 50% - 70% | 1.2x to 1.5x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 411 | 428 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 411 | 428 |
Commercial Mortgage Loans | 50% - 70% | 1.0x to 1.2x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 152 | 145 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 152 | 145 |
Commercial Mortgage Loans | 50% - 70% | Less than 1.0x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 0 | 0 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 0 | 0 |
Commercial Mortgage Loans | 70% - 90% | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 807 | 797 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 807 | 797 |
Commercial Mortgage Loans | 70% - 90% | Greater than 2.0x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 217 | 169 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 217 | 169 |
Commercial Mortgage Loans | 70% - 90% | 1.8x to 2.0x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 110 | 110 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 110 | 110 |
Commercial Mortgage Loans | 70% - 90% | 1.5x to 1.8x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 144 | 196 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 144 | 196 |
Commercial Mortgage Loans | 70% - 90% | 1.2x to 1.5x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 309 | 272 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 309 | 272 |
Commercial Mortgage Loans | 70% - 90% | 1.0x to 1.2x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 27 | 50 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 27 | 50 |
Commercial Mortgage Loans | 70% - 90% | Less than 1.0x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 0 | 0 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 0 | 0 |
Commercial Mortgage Loans | 90% plus | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 27 | 27 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 27 | 27 |
Commercial Mortgage Loans | 90% plus | Greater than 2.0x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 0 | 0 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 0 | 0 |
Commercial Mortgage Loans | 90% plus | 1.8x to 2.0x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 0 | 0 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 0 | 0 |
Commercial Mortgage Loans | 90% plus | 1.5x to 1.8x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 27 | 27 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 27 | 27 |
Commercial Mortgage Loans | 90% plus | 1.2x to 1.5x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 0 | 0 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 0 | 0 |
Commercial Mortgage Loans | 90% plus | 1.0x to 1.2x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 0 | 0 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 0 | 0 |
Commercial Mortgage Loans | 90% plus | Less than 1.0x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 0 | 0 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 0 | 0 |
Agricultural Mortgage Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 2,631 | 2,574 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Financing receivables, recorded investment, past due | 79 | 74 |
Financing receivables, recorded investment, current | 2,552 | 2,500 |
Total Financing Receivables | 2,631 | 2,574 |
Financing receivable, recorded investment, 90 days or more past due and accruing | 21 | 22 |
Agricultural Mortgage Loans | With no related allowance recorded | ||
Impaired Mortgage Loans [Abstract] | ||
Recorded Investment | 0 | 0 |
Unpaid Principal Balance | 0 | 0 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 0 | 0 |
Interest Income Recognized | 0 | 0 |
Agricultural Mortgage Loans | With related allowance recorded | ||
Impaired Mortgage Loans [Abstract] | ||
Recorded Investment | 0 | 0 |
Unpaid Principal Balance | 0 | 0 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 0 | 0 |
Interest Income Recognized | 0 | 0 |
Agricultural Mortgage Loans | 30-59 Days | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Financing receivables, recorded investment, past due | 46 | 49 |
Agricultural Mortgage Loans | 60-89 Days | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Financing receivables, recorded investment, past due | 12 | 3 |
Agricultural Mortgage Loans | 90 Days or More | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Financing receivables, recorded investment, past due | 21 | 22 |
Agricultural Mortgage Loans | Greater than 2.0x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 394 | 383 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 394 | 383 |
Agricultural Mortgage Loans | 1.8x to 2.0x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 196 | 195 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 196 | 195 |
Agricultural Mortgage Loans | 1.5x to 1.8x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 493 | 502 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 493 | 502 |
Agricultural Mortgage Loans | 1.2x to 1.5x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 917 | 878 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 917 | 878 |
Agricultural Mortgage Loans | 1.0x to 1.2x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 550 | 537 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 550 | 537 |
Agricultural Mortgage Loans | Less than 1.0x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 81 | 79 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 81 | 79 |
Agricultural Mortgage Loans | 0% - 50% | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 1,562 | 1,557 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 1,562 | 1,557 |
Agricultural Mortgage Loans | 0% - 50% | Greater than 2.0x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 280 | 272 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 280 | 272 |
Agricultural Mortgage Loans | 0% - 50% | 1.8x to 2.0x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 141 | 149 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 141 | 149 |
Agricultural Mortgage Loans | 0% - 50% | 1.5x to 1.8x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 266 | 275 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 266 | 275 |
Agricultural Mortgage Loans | 0% - 50% | 1.2x to 1.5x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 528 | 515 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 528 | 515 |
Agricultural Mortgage Loans | 0% - 50% | 1.0x to 1.2x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 316 | 316 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 316 | 316 |
Agricultural Mortgage Loans | 0% - 50% | Less than 1.0x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 31 | 30 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 31 | 30 |
Agricultural Mortgage Loans | 50% - 70% | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 1,046 | 1,013 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 1,046 | 1,013 |
Agricultural Mortgage Loans | 50% - 70% | Greater than 2.0x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 114 | 111 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 114 | 111 |
Agricultural Mortgage Loans | 50% - 70% | 1.8x to 2.0x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 55 | 46 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 55 | 46 |
Agricultural Mortgage Loans | 50% - 70% | 1.5x to 1.8x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 227 | 227 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 227 | 227 |
Agricultural Mortgage Loans | 50% - 70% | 1.2x to 1.5x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 366 | 359 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 366 | 359 |
Agricultural Mortgage Loans | 50% - 70% | 1.0x to 1.2x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 234 | 221 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 234 | 221 |
Agricultural Mortgage Loans | 50% - 70% | Less than 1.0x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 50 | 49 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 50 | 49 |
Agricultural Mortgage Loans | 70% - 90% | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 23 | 4 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 23 | 4 |
Agricultural Mortgage Loans | 70% - 90% | Greater than 2.0x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 0 | 0 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 0 | 0 |
Agricultural Mortgage Loans | 70% - 90% | 1.8x to 2.0x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 0 | 0 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 0 | 0 |
Agricultural Mortgage Loans | 70% - 90% | 1.5x to 1.8x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 0 | 0 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 0 | 0 |
Agricultural Mortgage Loans | 70% - 90% | 1.2x to 1.5x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 23 | 4 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 23 | 4 |
Agricultural Mortgage Loans | 70% - 90% | 1.0x to 1.2x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 0 | 0 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 0 | 0 |
Agricultural Mortgage Loans | 70% - 90% | Less than 1.0x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 0 | 0 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 0 | 0 |
Agricultural Mortgage Loans | 90% plus | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 0 | 0 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 0 | 0 |
Agricultural Mortgage Loans | 90% plus | Greater than 2.0x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 0 | 0 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 0 | 0 |
Agricultural Mortgage Loans | 90% plus | 1.8x to 2.0x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 0 | 0 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 0 | 0 |
Agricultural Mortgage Loans | 90% plus | 1.5x to 1.8x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 0 | 0 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 0 | 0 |
Agricultural Mortgage Loans | 90% plus | 1.2x to 1.5x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 0 | 0 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 0 | 0 |
Agricultural Mortgage Loans | 90% plus | 1.0x to 1.2x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 0 | 0 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 0 | 0 |
Agricultural Mortgage Loans | 90% plus | Less than 1.0x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 0 | 0 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 0 | 0 |
Total Mortgages Loan | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 11,799 | 10,943 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Financing receivables, recorded investment, past due | 106 | 101 |
Financing receivables, recorded investment, current | 11,693 | 10,842 |
Total Financing Receivables | 11,799 | 10,943 |
Financing receivable, recorded investment, 90 days or more past due and accruing | 21 | 22 |
Total Mortgages Loan | With no related allowance recorded | ||
Impaired Mortgage Loans [Abstract] | ||
Recorded Investment | 0 | 0 |
Unpaid Principal Balance | 0 | 0 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 0 | 0 |
Interest Income Recognized | 0 | 0 |
Total Mortgages Loan | With related allowance recorded | ||
Impaired Mortgage Loans [Abstract] | ||
Recorded Investment | 27 | 27 |
Unpaid Principal Balance | 27 | 27 |
Related Allowance | 7 | (8) |
Average Recorded Investment | 27 | 27 |
Interest Income Recognized | 0 | 2 |
Total Mortgages Loan | 30-59 Days | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Financing receivables, recorded investment, past due | 46 | 76 |
Total Mortgages Loan | 60-89 Days | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Financing receivables, recorded investment, past due | 12 | 3 |
Total Mortgages Loan | 90 Days or More | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Financing receivables, recorded investment, past due | 48 | 22 |
Total Mortgages Loan | Greater than 2.0x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 6,090 | 5,382 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 6,090 | 5,382 |
Total Mortgages Loan | 1.8x to 2.0x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 915 | 987 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 915 | 987 |
Total Mortgages Loan | 1.5x to 1.8x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 2,274 | 2,111 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 2,274 | 2,111 |
Total Mortgages Loan | 1.2x to 1.5x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 1,710 | 1,652 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 1,710 | 1,652 |
Total Mortgages Loan | 1.0x to 1.2x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 729 | 732 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 729 | 732 |
Total Mortgages Loan | Less than 1.0x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 81 | 79 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 81 | 79 |
Total Mortgages Loan | 0% - 50% | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 2,756 | 2,693 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 2,756 | 2,693 |
Total Mortgages Loan | 0% - 50% | Greater than 2.0x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 1,050 | 1,014 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 1,050 | 1,014 |
Total Mortgages Loan | 0% - 50% | 1.8x to 2.0x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 162 | 149 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 162 | 149 |
Total Mortgages Loan | 0% - 50% | 1.5x to 1.8x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 596 | 595 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 596 | 595 |
Total Mortgages Loan | 0% - 50% | 1.2x to 1.5x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 601 | 589 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 601 | 589 |
Total Mortgages Loan | 0% - 50% | 1.0x to 1.2x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 316 | 316 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 316 | 316 |
Total Mortgages Loan | 0% - 50% | Less than 1.0x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 31 | 30 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 31 | 30 |
Total Mortgages Loan | 50% - 70% | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 8,186 | 7,422 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 8,186 | 7,422 |
Total Mortgages Loan | 50% - 70% | Greater than 2.0x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 4,823 | 4,199 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 4,823 | 4,199 |
Total Mortgages Loan | 50% - 70% | 1.8x to 2.0x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 643 | 728 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 643 | 728 |
Total Mortgages Loan | 50% - 70% | 1.5x to 1.8x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 1,507 | 1,293 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 1,507 | 1,293 |
Total Mortgages Loan | 50% - 70% | 1.2x to 1.5x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 777 | 787 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 777 | 787 |
Total Mortgages Loan | 50% - 70% | 1.0x to 1.2x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 386 | 366 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 386 | 366 |
Total Mortgages Loan | 50% - 70% | Less than 1.0x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 50 | 49 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 50 | 49 |
Total Mortgages Loan | 70% - 90% | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 830 | 801 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 830 | 801 |
Total Mortgages Loan | 70% - 90% | Greater than 2.0x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 217 | 169 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 217 | 169 |
Total Mortgages Loan | 70% - 90% | 1.8x to 2.0x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 110 | 110 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 110 | 110 |
Total Mortgages Loan | 70% - 90% | 1.5x to 1.8x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 144 | 196 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 144 | 196 |
Total Mortgages Loan | 70% - 90% | 1.2x to 1.5x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 332 | 276 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 332 | 276 |
Total Mortgages Loan | 70% - 90% | 1.0x to 1.2x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 27 | 50 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 27 | 50 |
Total Mortgages Loan | 70% - 90% | Less than 1.0x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 0 | 0 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 0 | 0 |
Total Mortgages Loan | 90% plus | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 27 | 27 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 27 | 27 |
Total Mortgages Loan | 90% plus | Greater than 2.0x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 0 | 0 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 0 | 0 |
Total Mortgages Loan | 90% plus | 1.8x to 2.0x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 0 | 0 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 0 | 0 |
Total Mortgages Loan | 90% plus | 1.5x to 1.8x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 27 | 27 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 27 | 27 |
Total Mortgages Loan | 90% plus | 1.2x to 1.5x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 0 | 0 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 0 | 0 |
Total Mortgages Loan | 90% plus | 1.0x to 1.2x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 0 | 0 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 0 | 0 |
Total Mortgages Loan | 90% plus | Less than 1.0x | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 0 | 0 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | $ 0 | $ 0 |
INVESTMENTS - DERIVATIVES BY CA
INVESTMENTS - DERIVATIVES BY CATEGORY (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Derivatives, Fair Value [Line Items] | |||
Notional Amount | $ 90,808 | $ 62,016 | |
Fair Value | |||
Asset Derivatives | 6,202 | 14,228 | |
Fair Value | |||
Liability Derivatives | 9,819 | 9,476 | |
Gains (losses) reported in net income (loss) | (1,172) | $ 1,362 | |
Equity futures | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 7,314 | 3,113 | |
Fair Value | |||
Asset Derivatives | 2 | 1 | |
Fair Value | |||
Liability Derivatives | 1 | 3 | |
Gains (losses) reported in net income (loss) | (274) | (328) | |
Equity swaps | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 8,330 | 4,655 | |
Fair Value | |||
Asset Derivatives | 119 | 3 | |
Fair Value | |||
Liability Derivatives | 79 | 126 | |
Gains (losses) reported in net income (loss) | (49) | (403) | |
Equity options | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 22,285 | 20,630 | |
Fair Value | |||
Asset Derivatives | 3,608 | 3,334 | |
Fair Value | |||
Liability Derivatives | 1,531 | 1,426 | |
Gains (losses) reported in net income (loss) | 233 | 477 | |
Interest rate swaps | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 28,010 | 19,032 | |
Fair Value | |||
Asset Derivatives | 570 | 320 | |
Fair Value | |||
Liability Derivatives | 252 | 191 | |
Gains (losses) reported in net income (loss) | (516) | 452 | |
Interest rate futures | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 20,962 | 11,032 | |
Fair Value | |||
Asset Derivatives | 0 | 0 | |
Fair Value | |||
Liability Derivatives | 0 | 0 | |
Gains (losses) reported in net income (loss) | 109 | 22 | |
Interest rate swaptions | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 0 | ||
Fair Value | |||
Asset Derivatives | 0 | ||
Fair Value | |||
Liability Derivatives | 0 | ||
Gains (losses) reported in net income (loss) | 0 | ||
Credit default swaps | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 1,954 | 2,131 | |
Fair Value | |||
Asset Derivatives | 26 | 35 | |
Fair Value | |||
Liability Derivatives | 3 | 3 | |
Gains (losses) reported in net income (loss) | (2) | 9 | |
Foreign currency contracts | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 1,953 | 1,423 | |
Fair Value | |||
Asset Derivatives | 34 | 19 | |
Fair Value | |||
Liability Derivatives | 13 | 10 | |
Gains (losses) reported in net income (loss) | 14 | (1) | |
Margin | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 0 | 0 | |
Fair Value | |||
Asset Derivatives | 15 | 24 | |
Fair Value | |||
Liability Derivatives | 0 | 0 | |
Gains (losses) reported in net income (loss) | 0 | 0 | |
Collateral | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 0 | 0 | |
Fair Value | |||
Asset Derivatives | 3 | 4 | |
Fair Value | |||
Liability Derivatives | 2,549 | 1,855 | |
Gains (losses) reported in net income (loss) | 0 | 0 | |
GMIB reinsurance contracts | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 0 | 0 | |
Fair Value | |||
Asset Derivatives | 1,825 | 10,488 | |
Fair Value | |||
Liability Derivatives | 0 | 0 | |
Gains (losses) reported in net income (loss) | (1,224) | 893 | |
GMxB derivative features’ liability | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 0 | 0 | |
Fair Value | |||
Asset Derivatives | 0 | 0 | |
Fair Value | |||
Liability Derivatives | 3,500 | 4,164 | |
Gains (losses) reported in net income (loss) | 847 | 721 | |
SCS, SIO, MSO and IUL indexed features | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 0 | 0 | |
Fair Value | |||
Asset Derivatives | 0 | 0 | |
Fair Value | |||
Liability Derivatives | 1,891 | $ 1,698 | |
Gains (losses) reported in net income (loss) | $ (310) | $ (480) |
INVESTMENTS - EQUITY-BASED AND
INVESTMENTS - EQUITY-BASED AND TREASURY FUTURE CONTRACTS MARGIN (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Exchange Traded Future Contract [Line Items] | ||
Cash and securities collateral for derivative contract | $ 2,549 | $ 1,855 |
Cash and securities collateral | 3 | 3 |
Securities sold under agreements to repurchase | 1,850 | $ 1,887 |
S&P 500, Russell 1000, NASDAQ 100 and Emerging Market Indices | ||
Exchange Traded Future Contract [Line Items] | ||
Initial margin requirements | 211 | |
Us Treasury Notes And Euro Dollar | ||
Exchange Traded Future Contract [Line Items] | ||
Initial margin requirements | 55 | |
Euro Stoxx, FTSE100, EAFE And Topix Indices | ||
Exchange Traded Future Contract [Line Items] | ||
Initial margin requirements | $ 22 |
INVESTMENTS - DERIVATIVES OFFSE
INVESTMENTS - DERIVATIVES OFFSETTING FINANCIAL ASSETS (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Equity contracts | ||
Offsetting Assets [Line Items] | ||
Gross Amounts Recognized | $ 3,730 | $ 3,338 |
Gross Amounts Offset in the Balance Sheets | 1,611 | 1,555 |
Net Amounts Presented in the Balance Sheets | 2,119 | 1,783 |
Interest rate contracts | ||
Offsetting Assets [Line Items] | ||
Gross Amounts Recognized | 570 | 320 |
Gross Amounts Offset in the Balance Sheets | 252 | 191 |
Net Amounts Presented in the Balance Sheets | 318 | 129 |
Credit contracts | ||
Offsetting Assets [Line Items] | ||
Gross Amounts Recognized | 26 | 35 |
Gross Amounts Offset in the Balance Sheets | 3 | 3 |
Net Amounts Presented in the Balance Sheets | 23 | 32 |
Currency | ||
Offsetting Assets [Line Items] | ||
Gross Amounts Recognized | 34 | 19 |
Gross Amounts Offset in the Balance Sheets | 13 | 10 |
Net Amounts Presented in the Balance Sheets | 21 | 9 |
Margin | ||
Offsetting Assets [Line Items] | ||
Gross Amounts Recognized | 15 | 24 |
Gross Amounts Offset in the Balance Sheets | 0 | 0 |
Net Amounts Presented in the Balance Sheets | 15 | 24 |
Collateral | ||
Offsetting Assets [Line Items] | ||
Gross Amounts Recognized | 3 | 4 |
Gross Amounts Offset in the Balance Sheets | 2,549 | 1,855 |
Net Amounts Presented in the Balance Sheets | (2,546) | (1,851) |
Total Derivatives, subject to an ISDA Master Agreement | ||
Offsetting Assets [Line Items] | ||
Gross Amounts Recognized | 4,378 | 3,740 |
Gross Amounts Offset in the Balance Sheets | 4,428 | 3,614 |
Net Amounts Presented in the Balance Sheets | (50) | 126 |
Total Derivatives | ||
Offsetting Assets [Line Items] | ||
Gross Amounts Recognized | 4,378 | 3,740 |
Gross Amounts Offset in the Balance Sheets | 4,428 | 3,614 |
Net Amounts Presented in the Balance Sheets | (50) | 126 |
Other financial instruments | ||
Offsetting Assets [Line Items] | ||
Gross Amounts Recognized | 1,803 | 2,995 |
Gross Amounts Offset in the Balance Sheets | 0 | 0 |
Net Amounts Presented in the Balance Sheets | 1,803 | 2,995 |
Other invested assets | ||
Offsetting Assets [Line Items] | ||
Gross Amounts Recognized | 6,181 | 6,735 |
Gross Amounts Offset in the Balance Sheets | 4,428 | 3,614 |
Net Amounts Presented in the Balance Sheets | $ 1,753 | $ 3,121 |
INVESTMENTS - DERIVATIVES OFF51
INVESTMENTS - DERIVATIVES OFFSETTING FINANCIAL LIABILITIES (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Securities sold under agreement to repurchase | ||
Net Amounts Presented in the Balance Sheets | $ 1,850 | $ 1,887 |
Expense in securities sold under agreement to repurchase | 6,202 | 14,228 |
Equity contracts | ||
Offsetting Liabilities [Line Items] | ||
Gross Amounts Recognized | 1,611 | 1,555 |
Gross Amounts Offset in the Balance Sheets | 1,611 | 1,555 |
Net Amounts Presented in the Balance Sheets | 0 | 0 |
Interest rate contracts | ||
Offsetting Liabilities [Line Items] | ||
Gross Amounts Recognized | 252 | 191 |
Gross Amounts Offset in the Balance Sheets | 252 | 191 |
Net Amounts Presented in the Balance Sheets | 0 | 0 |
Credit contracts | ||
Offsetting Liabilities [Line Items] | ||
Gross Amounts Recognized | 3 | 3 |
Gross Amounts Offset in the Balance Sheets | 3 | 3 |
Net Amounts Presented in the Balance Sheets | 0 | 0 |
Currency | ||
Offsetting Liabilities [Line Items] | ||
Gross Amounts Recognized | 13 | 10 |
Gross Amounts Offset in the Balance Sheets | 13 | 10 |
Net Amounts Presented in the Balance Sheets | 0 | 0 |
Margin | ||
Offsetting Liabilities [Line Items] | ||
Gross Amounts Recognized | 0 | 0 |
Gross Amounts Offset in the Balance Sheets | 0 | 0 |
Net Amounts Presented in the Balance Sheets | 0 | 0 |
Securities sold under agreement to repurchase | ||
Expense in securities sold under agreement to repurchase | 15 | 24 |
Collateral | ||
Offsetting Liabilities [Line Items] | ||
Gross Amounts Recognized | 2,549 | 1,855 |
Gross Amounts Offset in the Balance Sheets | 2,549 | 1,855 |
Net Amounts Presented in the Balance Sheets | 0 | 0 |
Securities sold under agreement to repurchase | ||
Expense in securities sold under agreement to repurchase | 3 | 4 |
Total Derivatives, subject to an ISDA Master Agreement | ||
Offsetting Liabilities [Line Items] | ||
Gross Amounts Recognized | 4,428 | 3,614 |
Gross Amounts Offset in the Balance Sheets | 4,428 | 3,614 |
Net Amounts Presented in the Balance Sheets | 0 | 0 |
Total Derivatives, not subject to an ISDA Master Agreement | ||
Offsetting Liabilities [Line Items] | ||
Gross Amounts 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 Amounts Recognized | 4,428 | 3,614 |
Gross Amounts Offset in the Balance Sheets | 4,428 | 3,614 |
Net Amounts Presented in the Balance Sheets | 0 | 0 |
Other financial liabilities | ||
Offsetting Liabilities [Line Items] | ||
Gross Amounts Recognized | 2,008 | 2,663 |
Gross Amounts Offset in the Balance Sheets | 0 | 0 |
Net Amounts Presented in the Balance Sheets | 2,008 | 2,663 |
Other liabilities | ||
Offsetting Liabilities [Line Items] | ||
Gross Amounts Recognized | 6,436 | 6,277 |
Gross Amounts Offset in the Balance Sheets | 4,428 | 3,614 |
Net Amounts Presented in the Balance Sheets | 2,008 | 2,663 |
Securities sold under agreement to repurchase | ||
Securities sold under agreement to repurchase | ||
Gross Amounts Recognized | 1,842 | 1,882 |
Gross Amounts Offset in the Balance Sheets | 0 | 0 |
Net Amounts Presented in the Balance Sheets | $ 1,842 | $ 1,882 |
INVESTMENTS - DERIVATIVES GROSS
INVESTMENTS - DERIVATIVES GROSS COLLATERAL AMOUNTS ASSETS (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Total derivatives | ||
Offsetting Assets [Line Items] | ||
Fair Value of Assets | $ 2,481 | $ 1,954 |
Collateral (Received)/Held | ||
Financial Instruments | 0 | 0 |
Cash | (2,531) | (1,828) |
Net Amounts | (50) | 126 |
Other financial instruments | ||
Offsetting Assets [Line Items] | ||
Fair Value of Assets | 1,803 | 2,995 |
Collateral (Received)/Held | ||
Financial Instruments | 0 | 0 |
Cash | 0 | 0 |
Net Amounts | 1,803 | 2,995 |
Other invested assets | ||
Offsetting Assets [Line Items] | ||
Fair Value of Assets | 4,284 | 4,949 |
Collateral (Received)/Held | ||
Financial Instruments | 0 | 0 |
Cash | (2,531) | (1,828) |
Net Amounts | $ 1,753 | $ 3,121 |
INVESTMENTS - DERIVATIVES GRO53
INVESTMENTS - DERIVATIVES GROSS COLLATERAL AMOUNTS LIABILITIES (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Offsetting Liabilities [Line Items] | ||
Fair Value of Assets | $ 1,850 | $ 1,887 |
Collateral (Received)/Held | ||
Expense in securities sold under agreement to repurchase | 6,202 | 14,228 |
Initial Margin | ||
Collateral (Received)/Held | ||
Expense in securities sold under agreement to repurchase | 8 | 5 |
Securities sold under agreement to repurchase | ||
Offsetting Liabilities [Line Items] | ||
Fair Value of Assets | 1,842 | 1,882 |
Collateral (Received)/Held | ||
Financial Instruments | (1,889) | (1,988) |
Cash | (13) | (21) |
Net Amounts | $ (60) | (127) |
Securities sold under agreement to repurchase | Other financial liabilities | ||
Offsetting Liabilities [Line Items] | ||
Fair Value of Assets | 2,663 | |
Collateral (Received)/Held | ||
Financial Instruments | 0 | |
Cash | 0 | |
Net Amounts | 2,663 | |
Securities sold under agreement to repurchase | Other liabilities | ||
Offsetting Liabilities [Line Items] | ||
Fair Value of Assets | 2,663 | |
Collateral (Received)/Held | ||
Financial Instruments | 0 | |
Cash | 0 | |
Net Amounts | $ 2,663 |
INVESTMENTS - REPURCHASE AGREEM
INVESTMENTS - REPURCHASE AGREEMENTS ACCCOUNTED FOR AS BORROWINGS (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Repurchase agreements accounted for as secured borrowings [Line Items] | ||
Securities sold under agreement to repurchase | $ 1,842 | $ 1,882 |
Expense in securities sold under agreement to repurchase | 6,202 | 14,228 |
Initial Margin | ||
Repurchase agreements accounted for as secured borrowings [Line Items] | ||
Expense in securities sold under agreement to repurchase | 8 | 5 |
Overnight and Continuous | ||
Repurchase agreements accounted for as secured borrowings [Line Items] | ||
Securities sold under agreement to repurchase | 0 | 0 |
Up to 30 days | ||
Repurchase agreements accounted for as secured borrowings [Line Items] | ||
Securities sold under agreement to repurchase | 1,842 | 1,882 |
30–90 days | ||
Repurchase agreements accounted for as secured borrowings [Line Items] | ||
Securities sold under agreement to repurchase | 0 | 0 |
Greater Than 90 days | ||
Repurchase agreements accounted for as secured borrowings [Line Items] | ||
Securities sold under agreement to repurchase | 0 | 0 |
U.S. Treasury and agency securities | ||
Repurchase agreements accounted for as secured borrowings [Line Items] | ||
Securities sold under agreement to repurchase | 1,842 | 1,882 |
U.S. Treasury and agency securities | Overnight and Continuous | ||
Repurchase agreements accounted for as secured borrowings [Line Items] | ||
Securities sold under agreement to repurchase | 0 | 0 |
U.S. Treasury and agency securities | Up to 30 days | ||
Repurchase agreements accounted for as secured borrowings [Line Items] | ||
Securities sold under agreement to repurchase | 1,842 | 1,882 |
U.S. Treasury and agency securities | 30–90 days | ||
Repurchase agreements accounted for as secured borrowings [Line Items] | ||
Securities sold under agreement to repurchase | 0 | 0 |
U.S. Treasury and agency securities | Greater Than 90 days | ||
Repurchase agreements accounted for as secured borrowings [Line Items] | ||
Securities sold under agreement to repurchase | $ 0 | $ 0 |
CLOSED BLOCK - SUMMARIZED FINAN
CLOSED BLOCK - SUMMARIZED FINANCIAL INFORMATION FOR CLOSED BLOCKS (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
CLOSED BLOCK LIABILITIES: | ||||
Future policy benefits, policyholders’ account balances and other | $ 6,829 | $ 6,958 | ||
Policyholder dividend obligation | 0 | 19 | $ 47 | $ 52 |
Other liabilities | 272 | 271 | ||
Total Closed Block liabilities | 7,101 | 7,248 | ||
ASSETS DESIGNATED TO THE CLOSED BLOCK: | ||||
Fixed maturities, available for sale, at fair value (amortized cost of $3,768 and $3,923) | 3,772 | 4,070 | ||
Fixed maturities, available for sale, amortized cost | 3,768 | 3,923 | ||
Mortgage loans on real estate | 1,908 | 1,720 | ||
Policy loans | 752 | 781 | ||
Cash and other invested assets | 216 | 351 | ||
Other assets | 182 | 182 | ||
Total assets designated to the Closed Block | 6,830 | 7,104 | ||
Excess of Closed Block liabilities over assets designated to the Closed Block | 271 | 144 | ||
Amounts included in accumulated other comprehensive income (loss): | ||||
Net unrealized investment gains (losses), net of policyholder dividend obligation of $0 and $19 | 14 | 138 | ||
Maximum Future Earnings To Be Recognized From Closed Block Assets and Liabilities | $ 285 | $ 282 |
CLOSED BLOCK - REVENUES AND EXP
CLOSED BLOCK - REVENUES AND EXPENSES (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
REVENUES: | ||||
Premiums and other income | $ 49 | $ 61 | $ 100 | $ 115 |
Net investment income (loss) | 73 | 79 | 146 | 162 |
Net investment gains (losses) | 0 | (1) | 1 | (16) |
Total revenues | 122 | 139 | 247 | 261 |
BENEFITS AND OTHER DEDUCTIONS: | ||||
Policyholders’ benefits and dividends | 123 | 133 | 249 | 284 |
Other operating costs and expenses | 0 | 1 | 2 | 1 |
Total benefits and other deductions | 123 | 134 | 251 | 285 |
Net revenues (loss) before income taxes | (1) | 5 | (4) | (24) |
Income tax (expense) benefit | 0 | (2) | 1 | 8 |
Net Revenues (Losses) | $ (1) | $ 3 | $ (3) | $ (16) |
CLOSED BLOCK - RECONCILIATION O
CLOSED BLOCK - RECONCILIATION OF POLICYHOLDER DIVIDEND OBLIGATION (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Movement in Closed Block Dividend Obligation [Roll Forward] | ||
Balances, beginning of year | $ 19 | $ 52 |
Unrealized investment gains (losses), net of DAC | (19) | (5) |
Balances, End of Period | $ 0 | $ 47 |
INSURANCE LIABILITIES - GMDB AN
INSURANCE LIABILITIES - GMDB AND GMIB LIABILITIES AND OTHER POLICYHOLDER'S LIABILITIES (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Direct Liability | ||
Balance, beginning of period | $ 8,882 | $ 7,035 |
Paid guarantee benefits | (265) | (268) |
Other changes in reserve | 208 | 1,437 |
Balance, end of period | 8,825 | 8,204 |
GMDB | ||
Direct Liability | ||
Balance, beginning of period | 4,080 | 3,165 |
Paid guarantee benefits | (200) | (189) |
Other changes in reserve | 244 | 653 |
Balance, end of period | 4,124 | 3,629 |
GMIB | ||
Direct Liability | ||
Balance, beginning of period | 4,802 | 3,870 |
Paid guarantee benefits | (65) | (79) |
Other changes in reserve | (36) | 784 |
Balance, end of period | $ 4,701 | $ 4,575 |
INSURANCE LIABILITIES - GMDB RE
INSURANCE LIABILITIES - GMDB REINSURANCE CEDED (Details) - GMDB - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Guaranteed Minimum Death Benefit Reinsurance Ceded [Roll Forward] | ||
Balance, beginning of year | $ 2,030 | $ 1,558 |
Paid guarantee benefits | (64) | (91) |
Other changes in reserve | (1,869) | 366 |
Balance, End of Period | $ 97 | $ 1,833 |
INSURANCE LIABILITIES - DERIVAT
INSURANCE LIABILITIES - DERIVATIVE INSTRUMENTS IN HEDGES, LIABILITIES, AT FAIR VALUE (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 |
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | |||||
Total Embedded derivatives liability | $ 5,391 | $ 5,862 | |||
GMIB reinsurance contract asset, at fair value | 1,825 | 10,488 | $ 10,900 | $ 11,260 | $ 9,798 |
GMIBNLG | |||||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | |||||
Total Embedded derivatives liability | 3,419 | 4,056 | |||
SCS, MSO, IUL features | |||||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | |||||
Total Embedded derivatives liability | 1,891 | 1,698 | |||
GWBL/GMWB | |||||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | |||||
Total Embedded derivatives liability | 119 | 130 | |||
GIB | |||||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | |||||
Total Embedded derivatives liability | (41) | (27) | |||
GMAB | |||||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | |||||
Total Embedded derivatives liability | $ 3 | $ 5 |
INSURANCE LIABILITIES - VARIABL
INSURANCE LIABILITIES - VARIABLE ANNUITY CONTRACTS WITH GMDB AND GMIB FEATURES (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | |
GMDB | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Account Value Invested In General Account | $ 14,306 | |
Account Value Invested In Separate Accounts | 93,213 | $ 94,672 |
Net amount at risk, gross | 18,737 | |
Net amount at risk, net of amounts reinsured | $ 18,120 | |
Average attained age of contract holders | 55 years 2 months 12 days | |
Percentage of contract holders over age 70 | 18.40% | |
GMDB | Minimum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates | 0.00% | |
GMDB | Maximum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates | 0.00% | |
GMDB | Return of Premium | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Account Value Invested In General Account | $ 13,947 | |
Account Value Invested In Separate Accounts | 45,892 | |
Net amount at risk, gross | 176 | |
Net amount at risk, net of amounts reinsured | $ 176 | |
Average attained age of contract holders | 51 years 3 months 18 days | |
Percentage of contract holders over age 70 | 9.80% | |
GMDB | Ratchet | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Account Value Invested In General Account | $ 106 | |
Account Value Invested In Separate Accounts | 9,348 | |
Net amount at risk, gross | 88 | |
Net amount at risk, net of amounts reinsured | $ 84 | |
Average attained age of contract holders | 66 years 8 months 12 days | |
Percentage of contract holders over age 70 | 41.60% | |
GMDB | Roll-Up | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Account Value Invested In General Account | $ 63 | |
Account Value Invested In Separate Accounts | 3,363 | |
Net amount at risk, gross | 1,980 | |
Net amount at risk, net of amounts reinsured | $ 1,367 | |
Average attained age of contract holders | 73 years 3 months 18 days | |
Percentage of contract holders over age 70 | 64.30% | |
GMDB | Roll-Up | Minimum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates | 0.00% | |
GMDB | Roll-Up | Maximum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates | 0.00% | |
GMDB | Combo | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Account Value Invested In General Account | $ 190 | |
Account Value Invested In Separate Accounts | 34,610 | |
Net amount at risk, gross | 16,493 | |
Net amount at risk, net of amounts reinsured | $ 16,493 | |
Average attained age of contract holders | 68 years 7 months 6 days | |
Percentage of contract holders over age 70 | 48.30% | |
GMDB | Combo | Minimum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates | 0.00% | |
GMDB | Combo | Maximum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates | 0.00% | |
GMIB | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Account Value Invested In General Account | $ 303 | |
Account Value Invested In Separate Accounts | 60,278 | $ 62,286 |
Net amount at risk, gross | 7,118 | |
Net amount at risk, net of amounts reinsured | $ 5,964 | |
Average attained age of contract holders | 69 years | |
Weighted average years remaining until annuitization | 8 months 12 days | |
GMIB | Minimum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates | 0.00% | |
GMIB | Maximum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates | 0.00% | |
GMIB | Roll-Up | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Account Value Invested In General Account | $ 23 | |
Account Value Invested In Separate Accounts | 20,928 | |
Net amount at risk, gross | 843 | |
Net amount at risk, net of amounts reinsured | $ 264 | |
Average attained age of contract holders | 70 years 3 months 18 days | |
Weighted average years remaining until annuitization | 1 year 7 months 6 days | |
GMIB | Roll-Up | Minimum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates | 0.00% | |
GMIB | Roll-Up | Maximum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates | 0.00% | |
GMIB | Combo | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Account Value Invested In General Account | $ 280 | |
Account Value Invested In Separate Accounts | 39,350 | |
Net amount at risk, gross | 6,275 | |
Net amount at risk, net of amounts reinsured | $ 5,700 | |
Average attained age of contract holders | 68 years 7 months 6 days | |
Weighted average years remaining until annuitization | 7 months 6 days | |
GMIB | Combo | Minimum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates | 0.00% | |
GMIB | Combo | Maximum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates | 0.00% |
INSURANCE LIABILITIES - TEXTUAL
INSURANCE LIABILITIES - TEXTUAL (Details) $ in Millions | Jun. 30, 2018USD ($) |
GMDB | |
Net Amount at Risk by Product and Guarantee [Line Items] | |
Account value hedged of variable annuity contracts | $ 68,823 |
Net amount at risk hedged of variable annuity contracts | 17,169 |
GMIB | |
Net Amount at Risk by Product and Guarantee [Line Items] | |
Account value hedged of variable annuity contracts | 57,987 |
Net amount at risk hedged of variable annuity contracts | $ 7,226 |
Affiliates | GMDB | |
Net Amount at Risk by Product and Guarantee [Line Items] | |
Amount reinsured with non-affiliates and affiliates | 0.00% |
Affiliates | GMIB | |
Net Amount at Risk by Product and Guarantee [Line Items] | |
Amount reinsured with non-affiliates and affiliates | 0.00% |
Non Affiliated Entity | GMDB | |
Net Amount at Risk by Product and Guarantee [Line Items] | |
Amount reinsured with non-affiliates and affiliates | 3.30% |
Non Affiliated Entity | GMIB | |
Net Amount at Risk by Product and Guarantee [Line Items] | |
Amount reinsured with non-affiliates and affiliates | 16.20% |
Capital Markets Risks Instruments | GMDB | |
Net Amount at Risk by Product and Guarantee [Line Items] | |
Account value hedged of variable annuity contracts | $ 8,912 |
Net amount at risk hedged of variable annuity contracts | 610 |
Capital Markets Risks Instruments | GMIB | |
Net Amount at Risk by Product and Guarantee [Line Items] | |
Account value hedged of variable annuity contracts | 2,594 |
Net amount at risk hedged of variable annuity contracts | $ 247 |
INSURANCE LIABILITIES - INVESTM
INSURANCE LIABILITIES - INVESTMENT IN VARIABLE INSURANCE TRUST MUTUAL FUNDS (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
GMDB | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Investment in Variable Insurance Trust Mutual Funds | $ 93,213 | $ 94,672 |
GMDB | Equity | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Investment in Variable Insurance Trust Mutual Funds | 41,308 | 41,658 |
GMDB | Fixed income | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Investment in Variable Insurance Trust Mutual Funds | 5,316 | 5,469 |
GMDB | Balanced | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Investment in Variable Insurance Trust Mutual Funds | 45,736 | 46,577 |
GMDB | Other | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Investment in Variable Insurance Trust Mutual Funds | 853 | 968 |
GMDB | As Previously Reported | Equity | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Investment in Variable Insurance Trust Mutual Funds | 78,069 | |
GMDB | As Previously Reported | Fixed income | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Investment in Variable Insurance Trust Mutual Funds | 2,234 | |
GMDB | As Previously Reported | Balanced | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Investment in Variable Insurance Trust Mutual Funds | 14,084 | |
GMDB | As Previously Reported | Other | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Investment in Variable Insurance Trust Mutual Funds | 283 | |
GMIB | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Investment in Variable Insurance Trust Mutual Funds | 60,278 | 62,286 |
GMIB | Equity | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Investment in Variable Insurance Trust Mutual Funds | 19,107 | 19,928 |
GMIB | Fixed income | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Investment in Variable Insurance Trust Mutual Funds | 2,977 | 3,150 |
GMIB | Balanced | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Investment in Variable Insurance Trust Mutual Funds | 37,894 | 38,890 |
GMIB | Other | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Investment in Variable Insurance Trust Mutual Funds | $ 300 | 318 |
GMIB | As Previously Reported | Equity | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Investment in Variable Insurance Trust Mutual Funds | 50,429 | |
GMIB | As Previously Reported | Fixed income | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Investment in Variable Insurance Trust Mutual Funds | 1,568 | |
GMIB | As Previously Reported | Balanced | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Investment in Variable Insurance Trust Mutual Funds | 10,165 | |
GMIB | As Previously Reported | Other | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Investment in Variable Insurance Trust Mutual Funds | $ 124 |
INSURANCE LIABILITIES - SUMMARY
INSURANCE LIABILITIES - SUMMARY OF NO-LAPSE GUARANTEE LIABILITIES AND OTHER POLICYHOLDER'S LIABILITIES (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Direct Liability | ||
Balance, beginning of period | $ 8,882 | $ 7,035 |
Paid Guaranteed Benefits | (265) | (268) |
Balance, end of period | 8,825 | 8,204 |
Direct Liability | ||
Direct Liability | ||
Balance, beginning of period | 686 | 1,197 |
Paid Guaranteed Benefits | (9) | |
Other changes in reserves | 39 | 122 |
Balance, end of period | 716 | 1,319 |
Reinsurance Ceded | ||
Direct Liability | ||
Balance, beginning of period | (664) | (609) |
Paid Guaranteed Benefits | 0 | |
Other changes in reserves | (25) | (23) |
Balance, end of period | (689) | (632) |
Net | ||
Direct Liability | ||
Balance, beginning of period | 22 | 588 |
Paid Guaranteed Benefits | (9) | |
Other changes in reserves | 14 | 99 |
Balance, end of period | $ 27 | $ 687 |
REINSURANCE AGREEMENTS - TEXTUA
REINSURANCE AGREEMENTS - TEXTUAL (Details) $ in Millions | Feb. 01, 2018USD ($) |
Insurance [Abstract] | |
Percentage of single premium deferred annuities ceded | 90.00% |
Coinsurance agreement, transferred assets, excluding cash | $ 604 |
Coinsurance agreement, transferred assets, cash | 31 |
Market value of transferred assets | $ 635 |
FAIR VALUE DISCLOSURES - ASSETS
FAIR VALUE DISCLOSURES - ASSETS AND LIABILITIES MEASURED AT FAIR VALUE ON RECURRING BASIS (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Assets: | ||
Fixed maturities, available-for-sale | $ 36,515 | |
Trading securities | $ 13,900 | 12,628 |
Fair Value, Measurements, Recurring | ||
Assets: | ||
Fixed maturities, available-for-sale | 40,394 | 36,358 |
Other equity investments | 12 | 14 |
Trading securities | 13,900 | 12,628 |
Other invested assets | 3,251 | 4,023 |
Cash equivalents | 4,974 | 2,360 |
Segregated securities | 1,289 | 825 |
GMIB reinsurance contract asset | 1,825 | 10,488 |
Separate Accounts’ assets | 120,695 | 122,315 |
Total Assets | 186,340 | 189,011 |
Liabilities | ||
Contingent payment arrangements | 11 | 11 |
Total Liabilities | 5,405 | 6,565 |
Fair Value, Measurements, Recurring | Public Corporate | ||
Assets: | ||
Fixed maturities, available-for-sale | 17,301 | 14,345 |
Fair Value, Measurements, Recurring | Private Corporate | ||
Assets: | ||
Fixed maturities, available-for-sale | 6,945 | 7,137 |
Fair Value, Measurements, Recurring | U.S. Treasury, government and agency | ||
Assets: | ||
Fixed maturities, available-for-sale | 13,903 | 13,135 |
Fair Value, Measurements, Recurring | States and political subdivisions | ||
Assets: | ||
Fixed maturities, available-for-sale | 462 | 481 |
Fair Value, Measurements, Recurring | Foreign governments | ||
Assets: | ||
Fixed maturities, available-for-sale | 447 | 409 |
Fair Value, Measurements, Recurring | Residential mortgage-backed | ||
Assets: | ||
Fixed maturities, available-for-sale | 221 | 251 |
Fair Value, Measurements, Recurring | Asset-backed | ||
Assets: | ||
Fixed maturities, available-for-sale | 617 | 96 |
Fair Value, Measurements, Recurring | Redeemable preferred stock | ||
Assets: | ||
Fixed maturities, available-for-sale | 498 | 504 |
Fair Value, Measurements, Recurring | Short-term investments | ||
Assets: | ||
Other invested assets | 442 | 768 |
Fair Value, Measurements, Recurring | Assets of consolidated VIEs/VOEs | ||
Assets: | ||
Other invested assets | 328 | 1,302 |
Fair Value, Measurements, Recurring | Swaps | ||
Assets: | ||
Other invested assets | 380 | 15 |
Fair Value, Measurements, Recurring | Credit Default Swaps | ||
Assets: | ||
Other invested assets | 23 | 33 |
Fair Value, Measurements, Recurring | Futures | ||
Assets: | ||
Other invested assets | 1 | (2) |
Fair Value, Measurements, Recurring | Options | ||
Assets: | ||
Other invested assets | 2,077 | 1,907 |
Fair Value, Measurements, Recurring | GMxB derivative features’ liability | ||
Liabilities | ||
Features’ liability | 3,500 | 4,164 |
Fair Value, Measurements, Recurring | SCS, SIO, MSO and IUL indexed features’ liability | ||
Liabilities | ||
Features’ liability | 1,891 | 1,698 |
Fair Value, Measurements, Recurring | Variable Interest Entity, Primary Beneficiary | ||
Liabilities | ||
Liabilities of consolidated VIEs/VOEs | 3 | 692 |
Fair Value, Measurements, Recurring | Level 1 | ||
Assets: | ||
Fixed maturities, available-for-sale | 176 | 180 |
Other equity investments | 12 | 13 |
Trading securities | 493 | 467 |
Other invested assets | 74 | 1,058 |
Cash equivalents | 4,974 | 2,360 |
Segregated securities | 0 | 0 |
GMIB reinsurance contract asset | 0 | 0 |
Separate Accounts’ assets | 117,571 | 118,983 |
Total Assets | 123,300 | 123,061 |
Liabilities | ||
Contingent payment arrangements | 0 | 0 |
Total Liabilities | 0 | 670 |
Fair Value, Measurements, Recurring | Level 1 | Public Corporate | ||
Assets: | ||
Fixed maturities, available-for-sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Private Corporate | ||
Assets: | ||
Fixed maturities, available-for-sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | U.S. Treasury, government and agency | ||
Assets: | ||
Fixed maturities, available-for-sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | States and political subdivisions | ||
Assets: | ||
Fixed maturities, available-for-sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Foreign governments | ||
Assets: | ||
Fixed maturities, available-for-sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Residential mortgage-backed | ||
Assets: | ||
Fixed maturities, available-for-sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Asset-backed | ||
Assets: | ||
Fixed maturities, available-for-sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Redeemable preferred stock | ||
Assets: | ||
Fixed maturities, available-for-sale | 176 | 180 |
Fair Value, Measurements, Recurring | Level 1 | Short-term investments | ||
Assets: | ||
Other invested assets | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Assets of consolidated VIEs/VOEs | ||
Assets: | ||
Other invested assets | 73 | 1,060 |
Fair Value, Measurements, Recurring | Level 1 | Swaps | ||
Assets: | ||
Other invested assets | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Credit Default Swaps | ||
Assets: | ||
Other invested assets | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Futures | ||
Assets: | ||
Other invested assets | 1 | (2) |
Fair Value, Measurements, Recurring | Level 1 | Options | ||
Assets: | ||
Other invested assets | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | GMxB derivative features’ liability | ||
Liabilities | ||
Features’ liability | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | SCS, SIO, MSO and IUL indexed features’ liability | ||
Liabilities | ||
Features’ liability | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Variable Interest Entity, Primary Beneficiary | ||
Liabilities | ||
Liabilities of consolidated VIEs/VOEs | 0 | 670 |
Fair Value, Measurements, Recurring | Level 2 | ||
Assets: | ||
Fixed maturities, available-for-sale | 38,490 | 34,991 |
Other equity investments | 0 | 0 |
Trading securities | 13,407 | 12,161 |
Other invested assets | 3,148 | 2,938 |
Cash equivalents | 0 | 0 |
Segregated securities | 1,289 | 825 |
GMIB reinsurance contract asset | 0 | 0 |
Separate Accounts’ assets | 2,763 | 2,983 |
Total Assets | 59,097 | 53,898 |
Liabilities | ||
Contingent payment arrangements | 0 | 0 |
Total Liabilities | 1,894 | 1,720 |
Fair Value, Measurements, Recurring | Level 2 | Public Corporate | ||
Assets: | ||
Fixed maturities, available-for-sale | 17,226 | 14,298 |
Fair Value, Measurements, Recurring | Level 2 | Private Corporate | ||
Assets: | ||
Fixed maturities, available-for-sale | 5,868 | 6,045 |
Fair Value, Measurements, Recurring | Level 2 | U.S. Treasury, government and agency | ||
Assets: | ||
Fixed maturities, available-for-sale | 13,903 | 13,135 |
Fair Value, Measurements, Recurring | Level 2 | States and political subdivisions | ||
Assets: | ||
Fixed maturities, available-for-sale | 424 | 441 |
Fair Value, Measurements, Recurring | Level 2 | Foreign governments | ||
Assets: | ||
Fixed maturities, available-for-sale | 447 | 409 |
Fair Value, Measurements, Recurring | Level 2 | Residential mortgage-backed | ||
Assets: | ||
Fixed maturities, available-for-sale | 221 | 251 |
Fair Value, Measurements, Recurring | Level 2 | Asset-backed | ||
Assets: | ||
Fixed maturities, available-for-sale | 79 | 88 |
Fair Value, Measurements, Recurring | Level 2 | Redeemable preferred stock | ||
Assets: | ||
Fixed maturities, available-for-sale | 322 | 324 |
Fair Value, Measurements, Recurring | Level 2 | Short-term investments | ||
Assets: | ||
Other invested assets | 442 | 768 |
Fair Value, Measurements, Recurring | Level 2 | Assets of consolidated VIEs/VOEs | ||
Assets: | ||
Other invested assets | 226 | 215 |
Fair Value, Measurements, Recurring | Level 2 | Swaps | ||
Assets: | ||
Other invested assets | 380 | 15 |
Fair Value, Measurements, Recurring | Level 2 | Credit Default Swaps | ||
Assets: | ||
Other invested assets | 23 | 33 |
Fair Value, Measurements, Recurring | Level 2 | Futures | ||
Assets: | ||
Other invested assets | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | Options | ||
Assets: | ||
Other invested assets | 2,077 | 1,907 |
Fair Value, Measurements, Recurring | Level 2 | GMxB derivative features’ liability | ||
Liabilities | ||
Features’ liability | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | SCS, SIO, MSO and IUL indexed features’ liability | ||
Liabilities | ||
Features’ liability | 1,891 | 1,698 |
Fair Value, Measurements, Recurring | Level 2 | Variable Interest Entity, Primary Beneficiary | ||
Liabilities | ||
Liabilities of consolidated VIEs/VOEs | 3 | 22 |
Fair Value, Measurements, Recurring | Level 3 | ||
Assets: | ||
Fixed maturities, available-for-sale | 1,728 | 1,187 |
Other equity investments | 0 | 1 |
Trading securities | 0 | 0 |
Other invested assets | 29 | 27 |
Cash equivalents | 0 | 0 |
Segregated securities | 0 | 0 |
GMIB reinsurance contract asset | 1,825 | 10,488 |
Separate Accounts’ assets | 361 | 349 |
Total Assets | 3,943 | 12,052 |
Liabilities | ||
Contingent payment arrangements | 11 | 11 |
Total Liabilities | 3,511 | 4,175 |
Fair Value, Measurements, Recurring | Level 3 | Public Corporate | ||
Assets: | ||
Fixed maturities, available-for-sale | 75 | 47 |
Fair Value, Measurements, Recurring | Level 3 | Private Corporate | ||
Assets: | ||
Fixed maturities, available-for-sale | 1,077 | 1,092 |
Fair Value, Measurements, Recurring | Level 3 | U.S. Treasury, government and agency | ||
Assets: | ||
Fixed maturities, available-for-sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | States and political subdivisions | ||
Assets: | ||
Fixed maturities, available-for-sale | 38 | 40 |
Fair Value, Measurements, Recurring | Level 3 | Foreign governments | ||
Assets: | ||
Fixed maturities, available-for-sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Residential mortgage-backed | ||
Assets: | ||
Fixed maturities, available-for-sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Asset-backed | ||
Assets: | ||
Fixed maturities, available-for-sale | 538 | 8 |
Fair Value, Measurements, Recurring | Level 3 | Redeemable preferred stock | ||
Assets: | ||
Fixed maturities, available-for-sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Short-term investments | ||
Assets: | ||
Other invested assets | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Assets of consolidated VIEs/VOEs | ||
Assets: | ||
Other invested assets | 29 | 27 |
Fair Value, Measurements, Recurring | Level 3 | Swaps | ||
Assets: | ||
Other invested assets | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Credit Default Swaps | ||
Assets: | ||
Other invested assets | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Futures | ||
Assets: | ||
Other invested assets | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Options | ||
Assets: | ||
Other invested assets | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | GMxB derivative features’ liability | ||
Liabilities | ||
Features’ liability | 3,500 | 4,164 |
Fair Value, Measurements, Recurring | Level 3 | SCS, SIO, MSO and IUL indexed features’ liability | ||
Liabilities | ||
Features’ liability | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Variable Interest Entity, Primary Beneficiary | ||
Liabilities | ||
Liabilities of consolidated VIEs/VOEs | $ 0 | $ 0 |
FAIR VALUE DISCLOSURES - TEXTUA
FAIR VALUE DISCLOSURES - TEXTUAL (Details) - USD ($) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Mar. 31, 2018 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Quantitative Disclosure [Line Items] | ||||
Fixed maturities, available-for-sale | $ 36,515,000,000 | |||
Fair value freestanding contract | $ 2,481,000,000 | $ 1,953,000,000 | ||
Freestanding contract invested assets (as a percent) | 66.30% | 48.50% | ||
Fair value adjustments on GMIB asset | $ 17,000,000 | $ 69,000,000 | ||
Transfers out of Level 3 | 28,000,000 | $ 6,000,000 | ||
Transfers into level 3 | $ 65,000,000 | $ 13,000,000 | ||
Transfers out of Levels 2 and 3 to total equity (as a percent) | 0.60% | 0.10% | ||
Investments which the underlying quantitative inputs are not developed by the Company and are not readily available | $ 395,000,000 | $ 990,000,000 | ||
Percentage of total assets classified as Level 3 | 25.30% | 46.70% | ||
Percentage of assets measured at fair value on a recurring basis | 0.20% | 0.50% | ||
Corporate | Private Available For Sale Corporate Securities | Matrix pricing model | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Quantitative Disclosure [Line Items] | ||||
Fair value of privately placed, available-for-sale corporate debt securities classified as Level 3 | $ 842,000,000 | $ 788,000,000 | ||
Percentage of Level 3 securities in the corporate fixed maturities asset class | 68.40% | 73.90% | ||
Asset-backed | Matrix pricing model | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Quantitative Disclosure [Line Items] | ||||
Percentage of Level 3 securities in the corporate fixed maturities asset class | ||||
Separate Accounts Assets | Asset-backed | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Quantitative Disclosure [Line Items] | ||||
Fair value of privately placed, available-for-sale corporate debt securities classified as Level 3 | $ 8,000,000 | 8,000,000 | ||
Separate Accounts Assets | Collateralized Mortgage Backed Securities | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Quantitative Disclosure [Line Items] | ||||
Fair value of privately placed, available-for-sale corporate debt securities classified as Level 3 | 14,000,000 | 13,000,000 | ||
Separate Accounts Assets | Private Real Estate Fund | Third party appraisal | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Quantitative Disclosure [Line Items] | ||||
Fair value of privately placed, available-for-sale corporate debt securities classified as Level 3 | 326,000,000 | 339,000,000 | ||
Separate Accounts Assets | Mortgages | Third party appraisal | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Quantitative Disclosure [Line Items] | ||||
Fair value of privately placed, available-for-sale corporate debt securities classified as Level 3 | $ 1,000,000 | 1,000,000 | ||
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) | 67.30% | 69.20% | ||
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) | 31.60% | 29.90% | ||
Mortgages and asset-backed securities owned | $ 217,000,000 | $ 257,000,000 | ||
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) | 1.20% | 0.90% | ||
Mortgages and asset-backed securities owned | $ 282,000,000 | $ 8,000,000 | ||
Fair value disclosures broker priced | 94,000,000 | 97,000,000 | ||
Level 3 | Corporate | Matrix pricing model | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Quantitative Disclosure [Line Items] | ||||
Fair value of privately placed, available-for-sale corporate debt securities classified as Level 3 | 31,000,000 | 53,000,000 | ||
Level 3 | Separate Accounts Assets | Third party appraisal | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Quantitative Disclosure [Line Items] | ||||
Fair value of privately placed, available-for-sale corporate debt securities classified as Level 3 | 339,000,000 | 326,000,000 | ||
Public Fixed Maturities | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Quantitative Disclosure [Line Items] | ||||
Fixed maturities, available-for-sale | $ 32,518,000,000 | $ 28,826,000,000 | ||
Available-for-sale fixed maturity assets measured at fair value on recurring basis (as a percent) | 17.70% | 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 | $ 7,876,000,000 | $ 7,532,000,000 | ||
Available-for-sale fixed maturity assets measured at fair value on recurring basis (as a percent) | 4.30% | 4.20% | ||
Alliance Bernstein | Level 3 | AB 2016 Acquisition | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Quantitative Disclosure [Line Items] | ||||
Acquisition-related contingent consideration liability | $ 11,000,000 | $ 11,000,000 | ||
Long-term revenue growth rate | Alliance Bernstein | Level 3 | AB 2016 Acquisition | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Quantitative Disclosure [Line Items] | ||||
Acquisition-related contingent consideration liability, measurement input | 0.310 | 0.310 | ||
Discount rate | Alliance Bernstein | Level 3 | AB 2016 Acquisition | Minimum | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Quantitative Disclosure [Line Items] | ||||
Acquisition-related contingent consideration liability, measurement input | 0.014 | 0.014 | ||
Discount rate | Alliance Bernstein | Level 3 | AB 2016 Acquisition | Maximum | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Quantitative Disclosure [Line Items] | ||||
Acquisition-related contingent consideration liability, measurement input | 0.023 | 0.023 |
FAIR VALUE DISCLOSURES - LEVEL
FAIR VALUE DISCLOSURES - LEVEL 3 UNOBSERVABLE INPUT RECONCILIATION (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Total gains (losses), realized and unrealized, included in: | ||||
Settlements | $ 0 | |||
Transfers into level 3 | 65,000,000 | $ 13,000,000 | ||
Transfers out of Level 3 | (28,000,000) | (6,000,000) | ||
Level 3 | Corporate | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Opening Balance | $ 1,229,000,000 | $ 1,014,000,000 | 1,139,000,000 | 845,000,000 |
Total gains (losses), realized and unrealized, included in: | ||||
Net investment income (loss) | 3,000,000 | 3,000,000 | 5,000,000 | 4,000,000 |
Investment gains (losses), net | 0 | 0 | 0 | 0 |
Subtotal | 3,000,000 | 3,000,000 | 5,000,000 | 4,000,000 |
Other comprehensive income (loss) | 6,000,000 | (51,000,000) | (14,000,000) | (6,000,000) |
Purchases | 27,000,000 | 169,000,000 | 200,000,000 | 322,000,000 |
Sales | (99,000,000) | (39,000,000) | (215,000,000) | 105,000,000 |
Settlements | 0 | 0 | ||
Transfers into level 3 | (2,000,000) | 6,000,000 | 65,000,000 | 13,000,000 |
Transfers out of Level 3 | (12,000,000) | (34,000,000) | 28,000,000 | 5,000,000 |
Closing Balance | 1,152,000,000 | 1,068,000,000 | 1,152,000,000 | 1,068,000,000 |
Level 3 | State and Political Sub- divisions | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Opening Balance | 39,000,000 | 42,000,000 | 40,000,000 | 42,000,000 |
Total gains (losses), realized and unrealized, included in: | ||||
Net investment income (loss) | 0 | 0 | 0 | 0 |
Investment gains (losses), net | 0 | 0 | 0 | 0 |
Subtotal | 0 | 0 | 0 | 0 |
Other comprehensive income (loss) | 0 | 0 | (1,000,000) | 0 |
Purchases | 0 | 0 | 0 | 0 |
Sales | (1,000,000) | 0 | (1,000,000) | 0 |
Settlements | 0 | 0 | ||
Transfers into level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Closing Balance | 38,000,000 | 42,000,000 | 38,000,000 | 42,000,000 |
Level 3 | Commercial Mortgage- backed | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Opening Balance | 0 | 324,000,000 | 0 | 349,000,000 |
Total gains (losses), realized and unrealized, included in: | ||||
Net investment income (loss) | 0 | 1,000,000 | 0 | 1,000,000 |
Investment gains (losses), net | 0 | (9,000,000) | 0 | (20,000,000) |
Subtotal | 0 | (8,000,000) | 0 | (19,000,000) |
Other comprehensive income (loss) | 0 | 7,000,000 | 0 | 19,000,000 |
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | (33,000,000) | 0 | 59,000,000 |
Settlements | 0 | 0 | ||
Transfers into level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Closing Balance | 0 | 290,000,000 | 0 | 290,000,000 |
Level 3 | Asset- backed | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Opening Balance | 7,000,000 | 31,000,000 | 8,000,000 | 24,000,000 |
Total gains (losses), realized and unrealized, included in: | ||||
Net investment income (loss) | 0 | 0 | 0 | 0 |
Investment gains (losses), net | 0 | 15,000,000 | 0 | 15,000,000 |
Subtotal | 0 | 15,000,000 | 0 | 15,000,000 |
Other comprehensive income (loss) | (1,000,000) | (11,000,000) | (1,000,000) | (7,000,000) |
Purchases | 533,000,000 | 0 | 533,000,000 | 0 |
Sales | (1,000,000) | (18,000,000) | (2,000,000) | 19,000,000 |
Settlements | 0 | |||
Transfers into level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | (5,000,000) | 0 | 1,000,000 |
Closing Balance | 538,000,000 | 12,000,000 | 538,000,000 | 12,000,000 |
Level 3 | Redeemable Preferred Stock | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Opening Balance | 0 | 1,000,000 | 0 | 1,000,000 |
Total gains (losses), realized and unrealized, included in: | ||||
Net investment income (loss) | 0 | 0 | 0 | 0 |
Investment gains (losses), net | 0 | 0 | 0 | 0 |
Net derivative gains (losses) | 0 | 0 | 0 | 0 |
Subtotal | 0 | 0 | 0 | 0 |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Activity related to consolidated VIEs | 0 | 0 | 0 | 0 |
Transfers into level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Closing Balance | 0 | 1,000,000 | 0 | 1,000,000 |
Level 3 | Other Equity Investments | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Opening Balance | 38,000,000 | 55,000,000 | 28,000,000 | 51,000,000 |
Total gains (losses), realized and unrealized, included in: | ||||
Net investment income (loss) | 0 | 0 | 0 | 0 |
Investment gains (losses), net | (1,000,000) | 0 | (1,000,000) | 0 |
Net derivative gains (losses) | 0 | 0 | 0 | 0 |
Subtotal | (1,000,000) | 0 | (1,000,000) | 0 |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Purchases | 2,000,000 | 0 | 6,000,000 | 4,000,000 |
Sales | (2,000,000) | 0 | (2,000,000) | (1,000,000) |
Settlements | 0 | 0 | 0 | 0 |
Activity related to consolidated VIEs | (3,000,000) | (7,000,000) | (2,000,000) | (7,000,000) |
Transfers into level 3 | 0 | 0 | 5,000,000 | 1,000,000 |
Transfers out of Level 3 | (5,000,000) | 0 | (5,000,000) | 0 |
Closing Balance | 29,000,000 | 48,000,000 | 29,000,000 | 48,000,000 |
Level 3 | GMIB Reinsurance Asset | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Opening Balance | 9,673,000,000 | 9,797,000,000 | 10,488,000,000 | 10,314,000,000 |
Total gains (losses), realized and unrealized, included in: | ||||
Net investment income (loss) | 0 | 0 | 0 | 0 |
Investment gains (losses), net | 0 | 0 | 0 | 0 |
Net derivative gains (losses) | (382,000,000) | 1,426,000,000 | (1,224,000,000) | 893,000,000 |
Subtotal | (382,000,000) | 1,426,000,000 | (1,224,000,000) | 893,000,000 |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Purchases | 18,000,000 | 73,000,000 | 72,000,000 | 110,000,000 |
Sales | (21,000,000) | (36,000,000) | (48,000,000) | (57,000,000) |
Settlements | (7,463,000,000) | 0 | (7,463,000,000) | 0 |
Activity related to consolidated VIEs | 0 | 0 | 0 | 0 |
Transfers into level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Closing Balance | 1,825,000,000 | 11,260,000,000 | 1,825,000,000 | 11,260,000,000 |
Level 3 | Separate Accounts Assets | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Opening Balance | 357,000,000 | 325,000,000 | 349,000,000 | 313,000,000 |
Total gains (losses), realized and unrealized, included in: | ||||
Net investment income (loss) | 0 | 0 | 18,000,000 | |
Investment gains (losses), net | 7,000,000 | 8,000,000 | 14,000,000 | 0 |
Net derivative gains (losses) | 0 | 0 | 0 | 0 |
Subtotal | 7,000,000 | 8,000,000 | 14,000,000 | 18,000,000 |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Purchases | (1,000,000) | 2,000,000 | 2,000,000 | 6,000,000 |
Sales | 0 | (1,000,000) | (1,000,000) | (2,000,000) |
Settlements | (2,000,000) | (1,000,000) | (3,000,000) | (2,000,000) |
Activity related to consolidated VIEs | 0 | 0 | 0 | 0 |
Transfers into level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Closing Balance | 361,000,000 | 333,000,000 | 361,000,000 | 333,000,000 |
Level 3 | GMxB Derivative Features Liability | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Opening Balance | (3,804,000,000) | (4,906,000,000) | (4,164,000,000) | (5,319,000,000) |
Total gains (losses), realized and unrealized, included in: | ||||
Net investment income (loss) | 0 | 0 | 0 | 0 |
Investment gains (losses), net | 0 | 0 | 0 | 0 |
Net derivative gains (losses) | 407,000,000 | 231,000,000 | 847,000,000 | 721,000,000 |
Subtotal | 407,000,000 | 231,000,000 | 847,000,000 | 721,000,000 |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Purchases | (104,000,000) | (80,000,000) | (186,000,000) | (158,000,000) |
Sales | 1,000,000 | 0 | 3,000,000 | 1,000,000 |
Settlements | 0 | 0 | 0 | 0 |
Activity related to consolidated VIEs | 0 | 0 | 0 | 0 |
Transfers into level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Closing Balance | (3,500,000,000) | (4,755,000,000) | (3,500,000,000) | (4,755,000,000) |
Level 3 | Contingent Payment Arrangement | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Opening Balance | (11,000,000) | (17,000,000) | (11,000,000) | (18,000,000) |
Total gains (losses), realized and unrealized, included in: | ||||
Net investment income (loss) | 0 | 0 | 0 | 0 |
Investment gains (losses), net | 0 | 0 | 0 | 0 |
Net derivative gains (losses) | 0 | 0 | 0 | 0 |
Subtotal | 0 | 0 | 0 | 0 |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 1,000,000 |
Activity related to consolidated VIEs | 0 | 0 | 0 | 0 |
Transfers into level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Closing Balance | $ (11,000,000) | $ (17,000,000) | $ (11,000,000) | $ (17,000,000) |
FAIR VALUE DISCLOSURES - UNREAL
FAIR VALUE DISCLOSURES - UNREALIZED GAINS (LOSSES) FOR LEVEL 3 STILL HELD (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Change in Accounting Estimate [Line Items] | ||||
Investment Gains (Losses), Net | $ (5) | $ 10 | $ 82 | $ (1) |
Level 3 | Corporate | ||||
Change in Accounting Estimate [Line Items] | ||||
Net Derivative Gains (losses) | 0 | 0 | 0 | 0 |
OCI | 6 | (51) | (14) | (6) |
Level 3 | States and political subdivisions | ||||
Change in Accounting Estimate [Line Items] | ||||
Net Derivative Gains (losses) | 0 | 0 | 0 | 0 |
OCI | 0 | 0 | (1) | 0 |
Level 3 | Commercial mortgage-backed | ||||
Change in Accounting Estimate [Line Items] | ||||
Net Derivative Gains (losses) | 0 | (9) | 0 | (20) |
OCI | 0 | 7 | 0 | 19 |
Level 3 | Asset-backed | ||||
Change in Accounting Estimate [Line Items] | ||||
Net Derivative Gains (losses) | 0 | 15 | 0 | 15 |
OCI | (1) | (11) | (1) | (7) |
Level 3 | GMIB reinsurance contracts | ||||
Change in Accounting Estimate [Line Items] | ||||
Net Derivative Gains (losses) | 0 | 0 | 0 | 0 |
OCI | 0 | 0 | 0 | 0 |
Level 3 | Separate Account assets | ||||
Change in Accounting Estimate [Line Items] | ||||
Net Derivative Gains (losses) | 7 | 8 | 14 | 0 |
OCI | 0 | 0 | $ 0 | $ 0 |
Level 3 | Assets and Liabilities Still Held | Corporate | ||||
Change in Accounting Estimate [Line Items] | ||||
Investment Gains (Losses), Net | 0 | 0 | ||
Net Derivative Gains (losses) | 0 | 0 | ||
OCI | (7) | (45) | ||
Level 3 | Assets and Liabilities Still Held | States and political subdivisions | ||||
Change in Accounting Estimate [Line Items] | ||||
Investment Gains (Losses), Net | 0 | |||
Net Derivative Gains (losses) | 0 | |||
OCI | (1) | |||
Level 3 | Assets and Liabilities Still Held | Commercial mortgage-backed | ||||
Change in Accounting Estimate [Line Items] | ||||
Investment Gains (Losses), Net | 0 | 0 | ||
Net Derivative Gains (losses) | 0 | 0 | ||
OCI | 0 | 5 | ||
Level 3 | Assets and Liabilities Still Held | Asset-backed | ||||
Change in Accounting Estimate [Line Items] | ||||
Investment Gains (Losses), Net | 0 | 0 | ||
Net Derivative Gains (losses) | 0 | 0 | ||
OCI | (1) | (11) | ||
Level 3 | Assets and Liabilities Still Held | Subtotal | ||||
Change in Accounting Estimate [Line Items] | ||||
Investment Gains (Losses), Net | 0 | 0 | ||
Net Derivative Gains (losses) | 0 | 0 | ||
OCI | (9) | (51) | ||
Level 3 | Assets and Liabilities Still Held | GMIB reinsurance contracts | ||||
Change in Accounting Estimate [Line Items] | ||||
Investment Gains (Losses), Net | 0 | 0 | ||
Net Derivative Gains (losses) | (1,224) | 893 | ||
OCI | 0 | 0 | ||
Level 3 | Assets and Liabilities Still Held | Separate Account assets | ||||
Change in Accounting Estimate [Line Items] | ||||
Investment Gains (Losses), Net | 14 | 18 | ||
Net Derivative Gains (losses) | 0 | 0 | ||
OCI | 0 | 0 | ||
Level 3 | Assets and Liabilities Still Held | GMxB derivative features’ liability | ||||
Change in Accounting Estimate [Line Items] | ||||
Investment Gains (Losses), Net | 0 | 0 | ||
Net Derivative Gains (losses) | 847 | 721 | ||
OCI | 0 | 0 | ||
Level 3 | Assets and Liabilities Still Held | Total | ||||
Change in Accounting Estimate [Line Items] | ||||
Investment Gains (Losses), Net | 14 | 18 | ||
Net Derivative Gains (losses) | (377) | 1,614 | ||
OCI | $ (9) | $ (51) |
FAIR VALUE DISCLOSURES - QUANTI
FAIR VALUE DISCLOSURES - QUANTITATIVE INFORMATION ABOUT LEVEL 3 (Details) - Level 3 $ in Millions | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2018USD ($) | Dec. 31, 2017USD ($) | Mar. 31, 2018USD ($) | |
Corporate | Matrix pricing model | |||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||
Assets, fair value | $ 31 | $ 53 | |
Corporate | Market com-parable companies | |||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||
Assets, fair value | $ 757 | $ 789 | |
Corporate | Minimum | Matrix pricing model | |||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||
Spread over the industry-specific benchmark yield curve | 0.0075 | 0 | |
Corporate | Maximum | Matrix pricing model | |||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||
Spread over the industry-specific benchmark yield curve | 0.0565 | 565 | |
Corporate | Weighted Average | Matrix pricing model | |||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||
Spread over the industry-specific benchmark yield curve | 0.0188 | 125 | |
Separate Account assets | Third party appraisal | |||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||
Assets, fair value | $ 339 | $ 326 | |
Separate Account assets | Discounted cash flow | |||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||
Assets, fair value | $ 1 | $ 1 | |
Spread over the industry-specific benchmark yield curve | 0.0228 | 243 | |
GMIB reinsurance contracts | Discounted cash flow | |||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||
Assets, fair value | $ 1,825 | $ 10,488 | |
GMIB reinsurance contracts | Minimum | Discounted cash flow | |||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||
Servicing asset, measurement input | 0.01 | ||
Servicing asset, non-performance risk | 0.0005 | 0.0005 | |
GMIB reinsurance contracts | Maximum | Discounted cash flow | |||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||
Servicing asset, measurement input | 0.063 | ||
Servicing asset, non-performance risk | 0.0010 | 0.0010 | |
GMIBNLG | Discounted cash flow | |||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||
Liabilities, fair value | $ 3,419 | $ 4,056 | |
Servicing liability, non-performance liability | 0.010 | 0.010 | |
GWBL/GMWB | Discounted cash flow | |||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||
Liabilities, fair value | $ 119 | $ 130 | |
GIB | Discounted cash flow | |||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||
Liabilities, fair value | (41) | (27) | |
GMAB | Discounted cash flow | |||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||
Liabilities, fair value | $ 3 | 5 | |
AB 2016 Acquisition | Alliance Bernstein | |||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||
Contingent payment arrangements | $ 11 | $ 11 | |
Withdrawal rate | GMIB reinsurance contracts | Minimum | Discounted cash flow | |||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||
Servicing asset, measurement input | 0 | 0 | |
Withdrawal rate | GMIB reinsurance contracts | Maximum | Discounted cash flow | |||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||
Servicing asset, measurement input | 0.080 | 0.080 | |
Withdrawal rate | GMIBNLG | Minimum | Discounted cash flow | |||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||
Servicing liability, measurement input | 0 | 0 | |
Withdrawal rate | GMIBNLG | Maximum | Discounted cash flow | |||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||
Servicing liability, measurement input | 0.124 | 0.124 | |
Withdrawal rate | GWBL/GMWB | Minimum | Discounted cash flow | |||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||
Servicing liability, measurement input | 0 | 0 | |
Withdrawal rate | GWBL/GMWB | Maximum | Discounted cash flow | |||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||
Servicing liability, measurement input | 0.070 | 0.070 | |
Withdrawal rate | GIB | Minimum | Discounted cash flow | |||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||
Servicing liability, measurement input | 0 | 0 | |
Withdrawal rate | GIB | Maximum | Discounted cash flow | |||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||
Servicing liability, measurement input | 0.07 | 0.070 | |
EBITDA multiple | Corporate | Minimum | Market com-parable companies | |||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||
Equity security, measurement input | 4.8 | 5.3 | |
EBITDA multiple | Corporate | Maximum | Market com-parable companies | |||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||
Equity security, measurement input | 33 | 27.9 | |
EBITDA multiple | Corporate | Weighted Average | Market com-parable companies | |||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||
Equity security, measurement input | 13 | 12.9 | |
Long-term revenue growth rate | AB 2016 Acquisition | Alliance Bernstein | |||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||
Acquisition-related contingent consideration liability, measurement input | 0.310 | 0.310 | |
Discount rate | Corporate | Minimum | Market com-parable companies | |||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||
Equity security, measurement input | 0.072 | 0.072 | |
Discount rate | Corporate | Maximum | Market com-parable companies | |||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||
Equity security, measurement input | 0.170 | 0.170 | |
Discount rate | Corporate | Weighted Average | Market com-parable companies | |||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||
Equity security, measurement input | 0.111 | 0.111 | |
Discount rate | Separate Account assets | Third party appraisal | |||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||
Servicing asset, measurement input | 0.065 | 0.066 | |
Discount rate | Separate Account assets | Discounted cash flow | |||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||
Servicing asset, measurement input | 0.048 | 0.04409 | |
Discount rate | AB 2016 Acquisition | Alliance Bernstein | Minimum | |||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||
Acquisition-related contingent consideration liability, measurement input | 0.014 | 0.014 | |
Discount rate | AB 2016 Acquisition | Alliance Bernstein | Maximum | |||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||
Acquisition-related contingent consideration liability, measurement input | 0.023 | 0.023 | |
Cash flow multiples | Corporate | Minimum | Market com-parable companies | |||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||
Equity security, measurement input | 9 | 9 | |
Cash flow multiples | Corporate | Maximum | Market com-parable companies | |||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||
Equity security, measurement input | 17.7 | 17.7 | |
Cash flow multiples | Corporate | Weighted Average | Market com-parable companies | |||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||
Equity security, measurement input | 13.1 | 13.1 | |
Cap rate | Separate Account assets | Third party appraisal | |||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||
Servicing asset, measurement input | 0.045 | 0.046 | |
Exit capitalization rate | Separate Account assets | Third party appraisal | |||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||
Servicing asset, measurement input | 0.056 | 0.056 | |
Utilization rate | GMIB reinsurance contracts | Minimum | Discounted cash flow | |||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||
Servicing asset, measurement input | 0 | 0 | |
Utilization rate | GMIB reinsurance contracts | Maximum | Discounted cash flow | |||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||
Servicing asset, measurement input | 0.16 | 0.160 | |
Utilization rate | GMIBNLG | Minimum | Discounted cash flow | |||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||
Servicing liability, measurement input | 0 | 0 | |
Utilization rate | GMIBNLG | Maximum | Discounted cash flow | |||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||
Servicing liability, measurement input | 0.160 | 0.160 | |
Utilization rate | GWBL/GMWB | Discounted cash flow | |||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||
Servicing liability, measurement input | 1 | 1 | |
Utilization rate | GIB | Minimum | Discounted cash flow | |||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||
Servicing liability, measurement input | 0 | 0 | |
Utilization rate | GIB | Maximum | Discounted cash flow | |||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||
Servicing liability, measurement input | 0.16 | 0.160 | |
Equity volatility | GMIB reinsurance contracts | Minimum | Discounted cash flow | |||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||
Servicing asset, measurement input | 0.09 | 0.099 | |
Equity volatility | GMIB reinsurance contracts | Maximum | Discounted cash flow | |||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||
Servicing asset, measurement input | 0.32 | 0.309 | |
Equity volatility | GMIBNLG | Discounted cash flow | |||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||
Servicing liability, measurement input | 0.200 | 0.200 | |
Equity volatility | GMIBNLG | Minimum | Discounted cash flow | |||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||
Servicing liability, measurement input | 0.008 | 0.008 | |
Equity volatility | GMIBNLG | Maximum | Discounted cash flow | |||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||
Servicing liability, measurement input | 0.262 | 0.262 | |
Equity volatility | GWBL/GMWB | Minimum | Discounted cash flow | |||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||
Servicing liability, measurement input | 0.09 | 0.099 | |
Equity volatility | GWBL/GMWB | Maximum | Discounted cash flow | |||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||
Servicing liability, measurement input | 0.32 | 0.309 | |
Equity volatility | GIB | Minimum | Discounted cash flow | |||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||
Servicing liability, measurement input | 0.09 | 0.099 | |
Equity volatility | GIB | Maximum | Discounted cash flow | |||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||
Servicing liability, measurement input | 0.32 | 0.309 | |
Equity volatility | GMAB | Minimum | Discounted cash flow | |||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||
Servicing liability, measurement input | 0.09 | 0.099 | |
Equity volatility | GMAB | Maximum | Discounted cash flow | |||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||
Servicing liability, measurement input | 0.32 | 0.309 | |
Forfeiture rate | GMIBNLG | Minimum | Discounted cash flow | |||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||
Servicing liability, measurement input | 0.0055 | 0.0055 | |
Forfeiture rate | GMIBNLG | Maximum | Discounted cash flow | |||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||
Servicing liability, measurement input | 0.021 | 0.021 | |
Lapse rate | GMIB reinsurance contracts | Minimum | Discounted cash flow | |||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||
Servicing asset, measurement input | 0.010 | ||
Lapse rate | GMIB reinsurance contracts | Maximum | Discounted cash flow | |||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||
Servicing asset, measurement input | 0.063 | ||
Lapse rate | GWBL/GMWB | Minimum | Discounted cash flow | |||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||
Servicing liability, measurement input | 0.005 | 0.009 | |
Lapse rate | GWBL/GMWB | Maximum | Discounted cash flow | |||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||
Servicing liability, measurement input | 0.057 | 0.057 | |
Lapse rate | GIB | Minimum | Discounted cash flow | |||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||
Servicing liability, measurement input | 0.005 | 0.009 | |
Lapse rate | GIB | Maximum | Discounted cash flow | |||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||
Servicing liability, measurement input | 0.057 | 0.057 | |
Lapse rate | GMAB | Minimum | Discounted cash flow | |||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||
Servicing liability, measurement input | 0.005 | 0.005 | |
Lapse rate | GMAB | Maximum | Discounted cash flow | |||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||
Servicing liability, measurement input | 0.110 | 0.110 |
FAIR VALUE DISCLOSURES - CARRYI
FAIR VALUE DISCLOSURES - CARRYING VALUES AND FAIR VALUES OF FINANCIAL INSTRUMENTS) (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Mar. 31, 2017 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Mortgage loans on real estate | $ 11,791 | $ 10,935 | |||
Loans to affiliates | 800 | 703 | |||
Policyholders’ liabilities: Investment contracts | 45,378 | 43,805 | $ 41,516 | $ 40,292 | |
Funding Agreements | $ 0 | 0 | |||
Policy loans | 3,266 | 3,315 | |||
Separate Account Liabilities | $ 120,931 | 122,537 | |||
Carrying Value | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Mortgage loans on real estate | 11,791 | 10,935 | |||
Loans to affiliates | 800 | 703 | |||
Policyholders’ liabilities: Investment contracts | 2,041 | 2,068 | |||
Funding Agreements | 3,013 | 3,014 | |||
Policy loans | 3,266 | 3,315 | |||
Short-term and Long-term debt | 515 | 769 | |||
Separate Account Liabilities | 7,968 | 7,537 | |||
Fair Value | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Mortgage loans on real estate | 11,536 | 10,895 | |||
Loans to affiliates | 800 | 700 | |||
Policyholders’ liabilities: Investment contracts | 2,084 | 2,170 | |||
Funding Agreements | 2,937 | 3,020 | |||
Policy loans | 4,020 | 4,210 | |||
Short-term and Long-term debt | 515 | 768 | |||
Separate Account Liabilities | 7,968 | 7,537 | |||
Fair Value | Level 1 | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Mortgage loans on real estate | 0 | 0 | |||
Loans to affiliates | 0 | 0 | |||
Policyholders’ liabilities: Investment contracts | 0 | 0 | |||
Policy loans | 0 | 0 | |||
Short-term and Long-term debt | 0 | 0 | |||
Separate Account Liabilities | 0 | 0 | |||
Fair Value | Level 2 | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Mortgage loans on real estate | 0 | 0 | |||
Loans to affiliates | 800 | 700 | |||
Policyholders’ liabilities: Investment contracts | 0 | 0 | |||
Funding Agreements | 2,937 | 3,020 | |||
Policy loans | 0 | 0 | |||
Short-term and Long-term debt | 515 | 768 | |||
Separate Account Liabilities | 0 | 0 | |||
Fair Value | Level 3 | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Mortgage loans on real estate | 11,536 | 10,895 | |||
Loans to affiliates | 0 | 0 | |||
Policyholders’ liabilities: Investment contracts | 2,084 | 2,170 | |||
Policy loans | 4,020 | 4,210 | |||
Short-term and Long-term debt | 0 | 0 | |||
Separate Account Liabilities | $ 7,968 | $ 7,537 |
REVENUE RECOGNITION (Details)
REVENUE RECOGNITION (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Total investment management and service fees | ||||
Disaggregation Of Revenue Table [Line Items] | ||||
Revenues disaggregated by category | $ 1,070 | $ 990 | $ 2,122 | $ 1,941 |
Base fees | ||||
Disaggregation Of Revenue Table [Line Items] | ||||
Revenues disaggregated by category | 722 | 672 | 1,448 | 1,317 |
Performance-based fees | ||||
Disaggregation Of Revenue Table [Line Items] | ||||
Revenues disaggregated by category | 35 | 15 | 41 | 21 |
Research services | ||||
Disaggregation Of Revenue Table [Line Items] | ||||
Revenues disaggregated by category | 107 | 109 | 221 | 222 |
Distribution services | ||||
Disaggregation Of Revenue Table [Line Items] | ||||
Revenues disaggregated by category | 182 | 171 | 362 | 336 |
Shareholder services | ||||
Disaggregation Of Revenue Table [Line Items] | ||||
Revenues disaggregated by category | 18 | 19 | 38 | 37 |
Other | ||||
Disaggregation Of Revenue Table [Line Items] | ||||
Revenues disaggregated by category | 6 | 4 | 12 | 8 |
Other income | ||||
Disaggregation Of Revenue Table [Line Items] | ||||
Revenues disaggregated by category | $ 10 | $ 9 | $ 17 | $ 16 |
SHARE-BASED COMPENSATION PROG73
SHARE-BASED COMPENSATION PROGRAMS - SCHEDULE OF COMPENSATION COSTS (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation costs | $ 0.6 | $ 23.9 | $ 14.7 | $ 35 |
Performance Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation costs | 3 | 9.6 | 5.6 | 13 |
Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation costs | 1.4 | 0.7 | 0.5 | 0.7 |
Restricted Unit Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Adjustment for awards | 10.9 | |||
Restricted Unit Awards | Alliance Bernstein | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation costs | (5) | 13.6 | 7.5 | 21.3 |
Other compensation plans | Parent Company | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation costs | $ 1.2 | $ 0 | $ 1.1 | $ 0 |
SHARE-BASED COMPENSATION PROG74
SHARE-BASED COMPENSATION PROGRAMS - TEXTUAL (Details) - USD ($) $ / shares in Units, $ in Millions | Jun. 11, 2018 | May 17, 2018 | May 09, 2018 | Mar. 26, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Mar. 01, 2018 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Repurchase of AB Holding units | $ 25 | $ 128 | |||||||
Compensation costs | $ 0.6 | $ 23.9 | $ 14.7 | $ 35 | |||||
Holdings | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Granted in period (in shares) | 900,000 | ||||||||
Holdings | Non-officer Directors [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Compensation costs | $ 0.6 | ||||||||
Shares issued (in shares) | 30,000 | ||||||||
Exercise price (in usd per share) | $ 21.68 | ||||||||
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) | 1,200,000 | 4,300,000 | 1,200,000 | 5,700,000 | |||||
Repurchase of AB Holding units | $ 33 | $ 97 | $ 35 | $ 128 | |||||
Open market purchase (in shares) | 3,700,000 | 4,900,000 | |||||||
Open market purchase | 1.2 | $ 82 | $ 33 | $ 110 | |||||
Restricted holding unit awards granted to employees (in shares) | 500,000 | 500,000 | |||||||
Restricted holding unit awards granted to employees | $ 8 | $ 9 | |||||||
Alliance Bernstein | Employees and eligible Directors | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Restricted holding unit awards granted to employees (in shares) | 2,400,000 | 2,000,000 | |||||||
AXA Performance Share Plan 2014 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Share distributions | $ 20 | ||||||||
Share distributions (in shares) | 0 | ||||||||
Performance Shares | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Compensation costs | 3 | 9.6 | $ 5.6 | $ 13 | |||||
Performance Shares | Holdings | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Granted in period (in shares) | 400,000 | ||||||||
Compensation cost not yet recognized | 4 | 4 | |||||||
Compensation costs | 0.1 | ||||||||
Stock Options | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Compensation costs | 1.4 | $ 0.7 | 0.5 | $ 0.7 | |||||
Stock Options | Holdings | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Compensation cost not yet recognized | 4 | $ 4 | |||||||
Compensation costs | $ 0.2 | ||||||||
Granted in period, weighted average grant date fair value (in usd per share) | $ 21.34 | ||||||||
Exercise price (in usd per share) | $ 4.61 | ||||||||
Expected volatility | 25.40% | ||||||||
Expected term | 5 years 8 months 12 days | ||||||||
Expected dividend rate | 2.44% | ||||||||
Risk free rate | 2.83% | ||||||||
Vesting period | 3 years | ||||||||
Omnibus Plan | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Awards authorized (in shares) | 5,900,000 | 5,900,000 | |||||||
Transaction Incentive Grant Awards | Restricted Stock Units (RSUs) | Holdings | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Granted in period (in shares) | 600,000 | ||||||||
Compensation cost not yet recognized | $ 2.6 | $ 2.6 | |||||||
Requisite service period | 5 years | ||||||||
Transaction Incentive Grant Awards | RSU Service Units | Holdings | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting percent | 50.00% | ||||||||
Vesting period | 2 years | ||||||||
Transaction Incentive Grant Awards | RSU Performance Units | Holdings | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Granted in period (in shares) | 158,000 | ||||||||
Vesting percent | 50.00% | ||||||||
Compensation cost not yet recognized | 3.2 | $ 3.2 | |||||||
All-Employee Award | Restricted Stock Units (RSUs) | Holdings | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Granted in period (in shares) | 200,000 | ||||||||
Grants in period on individual basis (in shares) | 50 | ||||||||
Compensation cost not yet recognized | 4.8 | $ 4.8 | |||||||
Compensation costs | 1.4 | ||||||||
Recognition period for compensation costs | 6 months | ||||||||
Annual Awards 2018 | Restricted Stock Units (RSUs) | Holdings | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Granted in period (in shares) | 800,000 | ||||||||
Share price (in usd per share) | $ 21.68 | ||||||||
Compensation cost not yet recognized | 17.8 | $ 17.8 | |||||||
Compensation costs | 1.3 | ||||||||
Vesting period | 3 years | ||||||||
TSR Performance Share Plan | Restricted Stock Units (RSUs) | Holdings | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Share price (in usd per share) | $ 23.17 | ||||||||
Minimum | Performance Shares | Holdings | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Potential shares earned, percent | 0.00% | ||||||||
Minimum | Transaction Incentive Grant Awards | Restricted Stock Units (RSUs) | Holdings | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Share price growth rate | 130.00% | ||||||||
Minimum | Transaction Incentive Grant Awards | RSU Performance Units | Holdings | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting period | 2 years | ||||||||
Maximum | Performance Shares | Holdings | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Potential shares earned, percent | 200.00% | ||||||||
Maximum | Transaction Incentive Grant Awards | Restricted Stock Units (RSUs) | Holdings | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Share price growth rate | 150.00% | ||||||||
Maximum | Transaction Incentive Grant Awards | RSU Performance Units | Holdings | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting period | 5 years | ||||||||
Period One | Stock Options | Holdings | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting percent | 33.33% | ||||||||
Period One | Annual Awards 2018 | Restricted Stock Units (RSUs) | Holdings | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting percent | 33.33% | ||||||||
Period Two | Stock Options | Holdings | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting percent | 33.33% | ||||||||
Period Two | Transaction Incentive Grant Awards | Holdings | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Intrinsic value | 6.3 | $ 6.3 | |||||||
Period Two | Transaction Incentive Grant Awards | RSU Performance Units | Holdings | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Granted in period (in shares) | 316,000 | ||||||||
Period Two | Annual Awards 2018 | Restricted Stock Units (RSUs) | Holdings | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting percent | 33.33% | ||||||||
Period Three | Stock Options | Holdings | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting percent | 33.33% | ||||||||
Period Three | Transaction Incentive Grant Awards | Restricted Stock Units (RSUs) | Holdings | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Compensation costs | $ 0.8 | ||||||||
Period Three | Transaction Incentive Grant Awards | RSU Performance Units | Holdings | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Granted in period, weighted average grant date fair value (in usd per share) | $ 16.47 | ||||||||
Period Three | Annual Awards 2018 | Restricted Stock Units (RSUs) | Holdings | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting percent | 33.33% | ||||||||
IPO | Holdings | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Share price (in usd per share) | $ 20 |
INCOME TAXES - TEXTUAL (Details
INCOME TAXES - TEXTUAL (Details) $ in Millions | 3 Months Ended |
Jun. 30, 2017USD ($) | |
Income Tax Disclosure [Abstract] | |
Tax benefit from IRS audit | $ 221 |
ACCUMULATED OTHER COMPREHENSI76
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - CUMMULATIVE GAINS (LOSSES) (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Accumulated Other Comprehensive Income | $ 16,964 | $ 18,540 | $ 19,564 | $ 16,139 | $ 16,257 | $ 14,505 | |
Unrealized gains (losses) on investments | |||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Accumulated Other Comprehensive Income | (435) | 440 | |||||
Foreign currency translation adjustments | |||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Accumulated Other Comprehensive Income | (48) | (63) | |||||
Defined benefit pension plans | |||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Accumulated Other Comprehensive Income | (56) | (45) | |||||
Total accumulated other comprehensive income (loss) | |||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Accumulated Other Comprehensive Income | (539) | 332 | |||||
Less: Accumulated other comprehensive (income) loss attributable to noncontrolling interest | |||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Accumulated Other Comprehensive Income | 75 | 99 | |||||
Accumulated other comprehensive income (loss) attributable to AXA Equitable | |||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Accumulated Other Comprehensive Income | $ (464) | $ 598 | $ 331 | $ 431 | $ 17 |
RELATED PARTY TRANSACTIONS - TE
RELATED PARTY TRANSACTIONS - TEXTUAL (Details) - USD ($) $ in Millions | Apr. 20, 2018 | Apr. 12, 2018 | Jun. 30, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Sep. 30, 2017 | Mar. 31, 2017 | ||
Related Party Transaction [Line Items] | ||||||||||
Transfer to Investments | $ 7,769 | |||||||||
Repayment of long-term debt | 300 | $ 202 | [1] | $ 0 | [1] | |||||
Settlement amount | 273 | |||||||||
Deferred tax asset | $ 1,200 | |||||||||
GMIB reinsurance contract asset, at fair value | $ 1,825 | 1,825 | $ 11,260 | $ 10,488 | $ 10,900 | $ 9,798 | ||||
Letters of credit outstanding | 18 | 18 | ||||||||
AXA RE Arizona | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Loss on write-off | 2,628 | |||||||||
Loss on write-off, net of tax | 2,076 | |||||||||
Write off of deferred costs | 1,800 | |||||||||
Difference in basis | 400 | 400 | ||||||||
AXA Equitable | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
GMIB reinsurance contract asset, at fair value | 189 | 189 | ||||||||
Ceded premiums and policy fee income | 24 | |||||||||
Ceded claims paid | 14 | 14 | ||||||||
Notes Payable, Other Payables | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Repayments of debt | $ 650 | |||||||||
Face amount | 700 | |||||||||
Loans Payable | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Repayments of debt | 50 | |||||||||
Face amount | 500 | |||||||||
EQ AZ | AXA Equitable | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
GMIB reinsurance contract asset, at fair value | 1,085 | 1,085 | ||||||||
Letters of credit outstanding | $ 2,430 | $ 2,430 | ||||||||
Holdings | Notes Payable, Other Payables | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Face amount | $ 800 | |||||||||
Debt instrument, stated rate | 3.69% | |||||||||
[1] | See Note 11 for significant non-cash transactions related to the GMxB unwind and related merger of AXA RE Arizona. |
ACCUMULATED OTHER COMPREHENSI78
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - COMPONENTS OF OCI, NET OF TAXES (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||||
Jun. 30, 2018 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Sep. 30, 2017 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||
Change in unrealized gains (losses), net of adjustments (net of deferred income tax expense (benefit) of $(83), $158, $(280) and $208) | $ (311) | $ (79) | $ 294 | $ 92 | $ (1,052) | $ 386 | $ 315 |
Total other comprehensive income (loss), net of income taxes | (320) | $ (76) | 274 | 127 | (1,069) | 401 | 333 |
Foreign currency translation adjustments | |||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||
Other comprehensive income (loss), before reclassifications, net of tax | (8) | (21) | (12) | 14 | |||
Reclassification from accumulated other comprehensive income, current period, net of tax | 0 | 0 | 0 | 0 | |||
Total other comprehensive income (loss), net of income taxes | (12) | 14 | |||||
Net unrealized gains (losses) on investments | |||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||
Other comprehensive income (loss), before reclassifications, net of tax | (347) | 312 | (1,332) | 452 | |||
Reclassification from accumulated other comprehensive income, current period, net of tax | 3 | 21 | (67) | (2) | |||
Adjustments for policyholders’ liabilities, DAC, insurance liability loss recognition and other | 33 | (39) | 347 | (64) | |||
Change in unrealized gains (losses), net of adjustments (net of deferred income tax expense (benefit) of $(83), $158, $(280) and $208) | (1,052) | 386 | |||||
Total other comprehensive income (loss), net of income taxes | (344) | 333 | (1,399) | 450 | |||
Reclassification from AOCI, current period, tax | 1 | 11 | (18) | (1) | |||
Other Comprehensive Income (Loss), Tax, Parenthetical Disclosures [Abstract] | |||||||
Other Comprehensive Income (Loss), Tax | (83) | 177 | |||||
Net gain (loss) arising during the period | |||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||
Other comprehensive income (loss), before reclassifications, net of tax | (1) | 1 | (5) | 1 | |||
Amortization of net prior service cost included in net periodic cost | |||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||
Reclassification from accumulated other comprehensive income, current period, net of tax | 0 | 0 | 0 | 0 | |||
Defined benefit pension plans | |||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||
Total other comprehensive income (loss), net of income taxes | (5) | 1 | |||||
Other Comprehensive Income (Loss), Tax, Parenthetical Disclosures [Abstract] | |||||||
Other Comprehensive Income (Loss), Tax | 0 | 0 | |||||
AOCI Attributable to Noncontrolling Interest | |||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||
Total other comprehensive income (loss), net of income taxes | 14 | 20 | 7 | 13 | |||
Accumulated other comprehensive income (loss) attributable to AXA Equitable | |||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||
Total other comprehensive income (loss), net of income taxes | $ (306) | $ 294 | $ 120 | $ (1,062) | $ 414 | $ 314 |
RELATED PARTY TRANSACTIONS - SU
RELATED PARTY TRANSACTIONS - SUMMARY OF ASSETS RECEIVED AND REMOVED (Details) $ in Millions | Apr. 12, 2018USD ($) |
Assets Received | |
Related Party Transaction [Line Items] | |
Transaction amount | $ 8,867 |
Assets Removed | |
Related Party Transaction [Line Items] | |
Transaction amount | 11,892 |
Fixed income securities | Assets Received | |
Related Party Transaction [Line Items] | |
Transaction amount | 7,442 |
Money Market funds | Assets Received | |
Related Party Transaction [Line Items] | |
Transaction amount | 2 |
Accrued interest | Assets Received | |
Related Party Transaction [Line Items] | |
Transaction amount | 43 |
Derivatives | Assets Received | |
Related Party Transaction [Line Items] | |
Transaction amount | 282 |
Cash | Assets Received | |
Related Party Transaction [Line Items] | |
Transaction amount | 1,098 |
Deferred cost of reinsurance asset | Assets Removed | |
Related Party Transaction [Line Items] | |
Transaction amount | 1,839 |
GMDB ceded reserves | Assets Removed | |
Related Party Transaction [Line Items] | |
Transaction amount | 2,317 |
GMIB reinsurance contract asset | Assets Removed | |
Related Party Transaction [Line Items] | |
Transaction amount | 7,463 |
Payable to AXA RE Arizona | Assets Removed | |
Related Party Transaction [Line Items] | |
Transaction amount | $ 273 |
COMMITMENT AND CONTINGENT LIA80
COMMITMENT AND CONTINGENT LIABILITIES - RESTRUCTURING ROLLFORWARD (Details) - AXA - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Employee Severance | ||
Restructuring Cost and Reserve [Line Items] | ||
Balance, beginning of year | $ 23 | $ 22 |
Additions / Expense Incurred | 6 | 17 |
Cash payments | (4) | (14) |
Other reductions | 0 | (2) |
Balance, end of Year | 25 | 23 |
Facility Closing | ||
Restructuring Cost and Reserve [Line Items] | ||
Balance, beginning of year | 165 | 170 |
Additions / Expense Incurred | 0 | 29 |
Deferred rent | 13 | 10 |
Cash payments | (32) | (48) |
Interest accretion | 7 | 4 |
Balance, end of Year | $ 153 | $ 165 |
COMMITMENT AND CONTINGENT LIA81
COMMITMENT AND CONTINGENT LIABILITIES - OBLIGATION UNDER FUNDING AGREEMENTS (Details) $ / policy in Millions, $ in Millions | 1 Months Ended | 6 Months Ended | 12 Months Ended | 19 Months Ended |
Feb. 29, 2016$ / policy | Jun. 30, 2018USD ($)plaintiff | Dec. 31, 2017USD ($) | Jan. 31, 2013fund | |
Restructuring Cost and Reserve [Line Items] | ||||
Unaccrued amounts of reasonably possible range of losses | $ 90 | |||
Advances from Federal Home Loan Banks | 3,000 | $ 3,000 | ||
Proceeds from FHLBank Borrowings, Financing Activities | 3,000 | 6,762 | ||
Payments of FHLBank Borrowings, Financing Activities | 3,000 | 6,000 | ||
Letters of credit outstanding | 18 | |||
Equity financing arrangements with Limited Partnerships | 784 | |||
Equity financing arrangements with affiliates | 244 | |||
Mortgage loans on real estate | 599 | |||
Federal Home Loan Bank of New York Short-Term Funding Agreements Maturing in Less than One Month | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Advances from Federal Home Loan Banks | 500 | 500 | ||
Proceeds from FHLBank Borrowings, Financing Activities | 3,000 | 6,000 | ||
Payments of FHLBank Borrowings, Financing Activities | 3,000 | 6,000 | ||
Federal Home Loan Bank of New York Long-Term Funding Agreements Maturing in Less than Four Years | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Advances from Federal Home Loan Banks | 1,526 | 1,244 | ||
Proceeds from FHLBank Borrowings, Financing Activities | 0 | 324 | ||
Payments of FHLBank Borrowings, Financing Activities | 0 | 0 | ||
Federal Home Loan Bank of New York Long-Term Funding Agreements Maturing in Less than Five Years | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Advances from Federal Home Loan Banks | 193 | 377 | ||
Proceeds from FHLBank Borrowings, Financing Activities | 0 | 303 | ||
Payments of FHLBank Borrowings, Financing Activities | 0 | 0 | ||
Federal Home Loan Bank of New York Long-Term Funding Agreements Maturing in Greater than Five Years | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Advances from Federal Home Loan Banks | 781 | 879 | ||
Proceeds from FHLBank Borrowings, Financing Activities | 0 | 135 | ||
Payments of FHLBank Borrowings, Financing Activities | 0 | 0 | ||
Federal Home Loan Bank of New York Long-Term Funding Agreements | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Advances from Federal Home Loan Banks | 2,500 | 2,500 | ||
Proceeds from FHLBank Borrowings, Financing Activities | 0 | 762 | ||
Payments of FHLBank Borrowings, Financing Activities | $ 0 | $ 0 | ||
Sivolella Litigation | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Loss contingency, number of funds involved in lawsuit | fund | 12 | |||
Brach Family Foundation Litigation | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Liability for future policy benefits, issue age | 70 years | |||
Liability for future policy benefits, amount per policy | $ / policy | 1 | |||
Number of plaintiffs | plaintiff | 2 |
BUSINESS SEGMENT INFORMATION -
BUSINESS SEGMENT INFORMATION - RECONCILIATION OF OPERATING PROFIT (LOSS) FROM SEGMENTS TO CONSOLIDATED (Details) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||||
Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Jun. 30, 2018USD ($)segmentclient_channel | Jun. 30, 2017USD ($) | Sep. 30, 2017USD ($) | |
Segment Reporting [Abstract] | ||||||||
Number of reportable segments | segment | 4 | |||||||
Number of main client channels | client_channel | 3 | |||||||
Segment Reporting Information [Line Items] | ||||||||
Net income (loss) attributable to AXA Equitable | $ (2,114) | $ (287) | $ (1) | $ 1,500 | $ (172) | $ (2,401) | $ 1,328 | $ 1,326 |
Adjustments related to: | ||||||||
Loss on the recapture of GMxB business previously ceded to AXA Arizona | 2,627 | 0 | 2,627 | 0 | ||||
Non-GAAP Operating Earnings | 445 | 497 | 806 | 639 | ||||
Interest expense | 11 | 6 | 22 | 11 | ||||
Segment Reconciling Items | ||||||||
Adjustments related to: | ||||||||
Variable annuity product features | 516 | (1,258) | 1,252 | (785) | ||||
Investment (gains) losses | 5 | (10) | (82) | 1 | ||||
Net actuarial (gains) losses related to pension and other postretirement benefit obligations | (20) | (21) | (113) | (48) | ||||
Other adjustments | (47) | (22) | (107) | (6) | ||||
Income tax expense (benefit) related to above adjustments | (671) | 444 | (832) | 259 | ||||
Non-recurring tax items | 15 | (222) | 22 | (218) | ||||
Operating Segments | Individual Retirement | ||||||||
Adjustments related to: | ||||||||
Non-GAAP Operating Earnings | 399 | 473 | 695 | 610 | ||||
Operating Segments | Group Retirement | ||||||||
Adjustments related to: | ||||||||
Non-GAAP Operating Earnings | 49 | 64 | 134 | 113 | ||||
Operating Segments | Investment Management and Research | ||||||||
Adjustments related to: | ||||||||
Non-GAAP Operating Earnings | 53 | 53 | 104 | 65 | ||||
Operating Segments | Protection Solutions | ||||||||
Adjustments related to: | ||||||||
Non-GAAP Operating Earnings | (1) | (11) | (13) | (39) | ||||
Corporate and Other | ||||||||
Adjustments related to: | ||||||||
Non-GAAP Operating Earnings | (55) | (82) | (114) | (110) | ||||
Interest expense | $ 11 | $ 6 | $ 22 | 11 | ||||
Retained Earnings | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net income (loss) attributable to AXA Equitable | $ 1,328 |
BUSINESS SEGMENT INFORMATION 83
BUSINESS SEGMENT INFORMATION - RECONCILIATION OF REVENUE FROM SEGMENTS TO CONSOLIDATED (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | ||||||||||
Total Revenues | $ 2,439 | $ 1,948 | $ 2,381 | $ 4,548 | $ 2,274 | $ 4,387 | $ 6,823 | $ 9,240 | $ 11,614 | $ 9,014 |
Adjustments related to: | ||||||||||
Investment expenses | 13 | 10 | 32 | 29 | ||||||
Operating Segments | Individual Retirement | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Total Revenues | 1,053 | 955 | 1,690 | 1,843 | ||||||
Operating Segments | Group Retirement | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Total Revenues | 246 | 203 | 486 | 438 | ||||||
Operating Segments | Investment Management and Research | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Total Revenues | 843 | 773 | 1,752 | 1,515 | ||||||
Operating Segments | Protection Solutions | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Total Revenues | 620 | 595 | 1,265 | 1,229 | ||||||
Corporate and Other | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Total Revenues | 198 | 232 | 395 | 469 | ||||||
Segment Reconciling Items | ||||||||||
Adjustments related to: | ||||||||||
Variable annuity product features | (510) | 1,759 | (1,237) | 1,287 | ||||||
Investment gains (losses) | (5) | 10 | 82 | (1) | ||||||
Other adjustments to segment revenues | (6) | 21 | (46) | 43 | ||||||
Intersegment Eliminations | ||||||||||
Adjustments related to: | ||||||||||
Investment expenses | 16 | 13 | 32 | 24 | ||||||
Investment Advice | Intersegment Eliminations | ||||||||||
Adjustments related to: | ||||||||||
Revenues disaggregated by category | $ 23 | $ 18 | $ 46 | $ 36 |
BUSINESS SEGMENT INFORMATION 84
BUSINESS SEGMENT INFORMATION - RECONCILIATION OF ASSETS FROM SEGMENT TO CONSOLIDATED (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 219,306 | $ 225,985 |
Operating Segments | Individual Retirement | ||
Segment Reporting Information [Line Items] | ||
Total assets | 104,958 | 120,612 |
Operating Segments | Group Retirement | ||
Segment Reporting Information [Line Items] | ||
Total assets | 43,877 | 40,472 |
Operating Segments | Investment Management and Research | ||
Segment Reporting Information [Line Items] | ||
Total assets | 9,182 | 10,079 |
Operating Segments | Protection Solutions | ||
Segment Reporting Information [Line Items] | ||
Total assets | 38,319 | 34,328 |
Corporate and Other | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ 22,970 | 20,494 |
As Previously Reported | Operating Segments | Investment Management and Research | ||
Segment Reporting Information [Line Items] | ||
Total assets | 10,079 | |
As Previously Reported | Operating Segments | Protection Solutions | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ 20,494 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - Subsequent Event $ in Millions | Jul. 26, 2018USD ($) |
Subsequent Event [Line Items] | |
Remaining authorized dividend amount | $ 142 |
AXA Equitable Financial Services | |
Subsequent Event [Line Items] | |
Payments of dividends | $ 1,100 |
REVISION OF PRIOR PERIOD FINA86
REVISION OF PRIOR PERIOD FINANCIAL STATEMENTS - BALANCE SHEET DISCLOSURES (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 |
Assets: | ||||||
Other equity investments | $ 1,328 | $ 1,351 | $ 1,456 | $ 1,440 | ||
Other invested assets | 1,753 | 3,121 | 2,654 | 2,084 | ||
Total investments | 72,485 | 68,098 | 62,122 | 60,417 | ||
DAC | 4,786 | $ 4,778 | 4,547 | $ 4,903 | 4,913 | 4,961 |
Amounts due from reinsurers | 3,088 | 5,079 | 5,004 | 4,889 | 4,647 | |
GMIB reinsurance contract asset, at fair value | 1,825 | 10,488 | 10,900 | 11,260 | 9,798 | |
Other Assets | 2,999 | 4,432 | 4,276 | |||
Total Assets | 219,306 | 222,376 | 225,985 | 219,395 | 215,713 | 210,013 |
Liabilities: | ||||||
Policyholders’ account balances | 45,378 | 43,805 | 41,516 | 40,292 | ||
Future policy benefits and other policyholders’ liabilities | 28,122 | 29,034 | 29,452 | 29,679 | 28,691 | |
Other liabilities | 2,008 | 3,111 | 2,663 | 2,522 | 2,493 | |
Current and deferred income taxes | 0 | 1,703 | 1,973 | 3,265 | 3,267 | 2,726 |
Total Liabilities | 202,196 | 202,812 | 205,795 | 202,815 | 199,095 | 195,091 |
Equity: | ||||||
Retained earnings | 6,617 | 8,731 | 9,010 | 7,476 | 7,479 | 5,978 |
Accumulated other comprehensive income (loss) | (464) | 598 | 331 | 431 | 137 | |
AXA Equitable Equity | 13,925 | 15,452 | 16,469 | 13,170 | 13,273 | 11,459 |
Noncontrolling interest | 3,039 | 3,095 | 2,984 | 3,046 | ||
Equity | 16,964 | 18,540 | 19,564 | 16,139 | 16,257 | 14,505 |
Total Liabilities and Equity | $ 219,306 | 222,376 | $ 225,985 | 219,395 | 215,713 | 210,013 |
As Previously Reported | ||||||
Assets: | ||||||
Other equity investments | 1,477 | 1,463 | ||||
Other invested assets | 2,622 | 2,050 | ||||
Total investments | 62,111 | 60,406 | ||||
DAC | 4,826 | 4,550 | 4,141 | 4,068 | ||
Amounts due from reinsurers | 5,016 | 4,870 | 4,639 | |||
GMIB reinsurance contract asset, at fair value | 10,933 | 11,290 | 9,795 | |||
Other Assets | 4,258 | |||||
Total Assets | 222,424 | 219,069 | 214,941 | 209,098 | ||
Liabilities: | ||||||
Policyholders’ account balances | 41,531 | 40,308 | ||||
Future policy benefits and other policyholders’ liabilities | 29,423 | 26,799 | 25,496 | |||
Other liabilities | 3,041 | 2,531 | 2,496 | |||
Current and deferred income taxes | 1,728 | 3,148 | 4,000 | 3,523 | ||
Total Liabilities | 202,767 | 202,669 | 196,972 | 192,712 | ||
Equity: | ||||||
Retained earnings | 8,824 | 7,265 | 8,779 | 7,411 | ||
Accumulated other comprehensive income (loss) | 362 | 493 | 179 | |||
AXA Equitable Equity | 15,545 | 12,990 | 14,635 | 12,934 | ||
Noncontrolling interest | 2,973 | 3,035 | ||||
Equity | 18,633 | 15,959 | 17,608 | 15,969 | ||
Total Liabilities and Equity | 222,424 | 219,069 | 214,941 | 209,098 | ||
Impact of Revisions | ||||||
Assets: | ||||||
Other equity investments | (21) | (23) | ||||
Other invested assets | 32 | 34 | ||||
Total investments | 11 | 11 | ||||
DAC | (48) | 353 | 247 | 367 | ||
Amounts due from reinsurers | (12) | 19 | 8 | |||
GMIB reinsurance contract asset, at fair value | (33) | (30) | 3 | |||
Other Assets | 18 | |||||
Total Assets | (48) | 326 | 247 | 389 | ||
Liabilities: | ||||||
Policyholders’ account balances | (15) | (16) | ||||
Future policy benefits and other policyholders’ liabilities | 29 | 79 | 51 | |||
Other liabilities | 70 | (9) | (3) | |||
Current and deferred income taxes | (25) | 117 | 65 | 120 | ||
Total Liabilities | 45 | 146 | 120 | 152 | ||
Equity: | ||||||
Retained earnings | (93) | 211 | 150 | 232 | ||
Accumulated other comprehensive income (loss) | (31) | (34) | (6) | |||
AXA Equitable Equity | (93) | 180 | 116 | 226 | ||
Noncontrolling interest | 11 | 11 | ||||
Equity | (93) | 180 | 127 | 237 | ||
Total Liabilities and Equity | $ (48) | $ 326 | 247 | 389 | ||
As Revised and Adjusted Herein | ||||||
Assets: | ||||||
Other equity investments | 1,456 | 1,440 | ||||
Other invested assets | 2,654 | 2,084 | ||||
Total investments | 62,122 | 60,417 | ||||
DAC | 4,388 | 4,435 | ||||
Amounts due from reinsurers | 4,889 | 4,647 | ||||
GMIB reinsurance contract asset, at fair value | 11,260 | 9,798 | ||||
Total Assets | 215,188 | 209,487 | ||||
Liabilities: | ||||||
Policyholders’ account balances | 41,516 | 40,292 | ||||
Future policy benefits and other policyholders’ liabilities | 26,878 | 25,547 | ||||
Other liabilities | 2,522 | 2,493 | ||||
Current and deferred income taxes | 4,065 | 3,643 | ||||
Total Liabilities | 197,092 | 192,864 | ||||
Equity: | ||||||
Retained earnings | 8,929 | 7,643 | ||||
Accumulated other comprehensive income (loss) | 459 | 173 | ||||
AXA Equitable Equity | 14,751 | 13,160 | ||||
Noncontrolling interest | 2,984 | 3,046 | ||||
Equity | 17,735 | 16,206 | ||||
Total Liabilities and Equity | 215,188 | 209,487 | ||||
Impact of Accounting Change | ||||||
Assets: | ||||||
Other equity investments | 0 | 0 | ||||
Other invested assets | 0 | 0 | ||||
Total investments | 0 | 0 | ||||
DAC | 525 | 526 | ||||
Amounts due from reinsurers | 0 | 0 | ||||
GMIB reinsurance contract asset, at fair value | 0 | 0 | ||||
Total Assets | 525 | 526 | ||||
Liabilities: | ||||||
Policyholders’ account balances | 0 | 0 | ||||
Future policy benefits and other policyholders’ liabilities | 2,801 | 3,144 | ||||
Other liabilities | 0 | 0 | ||||
Current and deferred income taxes | (798) | (917) | ||||
Total Liabilities | 2,003 | 2,227 | ||||
Equity: | ||||||
Retained earnings | (1,450) | (1,665) | ||||
Accumulated other comprehensive income (loss) | (28) | (36) | ||||
AXA Equitable Equity | (1,478) | (1,701) | ||||
Noncontrolling interest | 0 | 0 | ||||
Equity | (1,478) | (1,701) | ||||
Total Liabilities and Equity | $ 525 | $ 526 |
REVISION OF PRIOR PERIOD FINA87
REVISION OF PRIOR PERIOD FINANCIAL STATEMENTS - INCOME STATEMENT AND COMPREHENSIVE INCOME DISCLOSURES (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues: | ||||||||||
Policy charges and fee income | $ 904 | $ 907 | $ 846 | $ 852 | $ 1,773 | $ 1,698 | $ 2,605 | |||
Premiums | 217 | 208 | 225 | 232 | 440 | 457 | 665 | |||
Net derivative gains (losses) | (312) | $ (860) | (454) | 1,763 | (402) | (1,172) | 1,362 | 944 | $ 771 | $ (1,335) |
Total Revenues | 2,439 | 1,948 | 2,381 | 4,548 | 2,274 | 4,387 | 6,823 | 9,240 | 11,614 | 9,014 |
Benefits and other deductions: | ||||||||||
Policyholders’ benefits | 1,339 | 907 | 1,363 | 975 | 1,828 | 2,338 | 3,246 | |||
Interest credited to policyholders’ account balances | 240 | 255 | 197 | 208 | 239 | 495 | 448 | 681 | 921 | 905 |
Other operating costs and expenses | 2,486 | 149 | 381 | 2,926 | 530 | |||||
Compensation and benefits | 466 | 526 | 450 | 992 | 888 | |||||
Amortization of deferred policy acquisition costs | 31 | 58 | (12) | (49) | 29 | 89 | (20) | (32) | ||
Total benefits and other deductions | 4,950 | 2,150 | 2,361 | 2,516 | 2,449 | 7,100 | 4,966 | 7,364 | 9,359 | 8,392 |
Income (loss) from operations, before income taxes | (2,511) | (202) | 20 | 2,032 | (175) | (2,713) | 1,857 | 1,876 | ||
Income tax (expense) benefit | 553 | 69 | 101 | (419) | 121 | 622 | (298) | (197) | ||
Net income (loss) | (1,958) | (133) | 121 | 1,613 | (54) | (2,091) | 1,559 | 1,679 | ||
Less: net (income) loss attributable to the noncontrolling interest | (156) | (154) | (113) | (310) | (231) | |||||
Net income (loss) attributable to AXA Equitable | (2,114) | (287) | (1) | 1,500 | (172) | (2,401) | 1,328 | 1,326 | ||
Statements of Comprehensive Income (Loss): | ||||||||||
Net income (loss) | (1,958) | (133) | 121 | 1,613 | (54) | (2,091) | 1,559 | 1,679 | ||
Change in unrealized gains (losses), net of reclassification adjustment | (311) | (79) | 294 | 92 | (1,052) | 386 | 315 | |||
Other comprehensive income (loss) | (320) | (76) | 274 | 127 | (1,069) | 401 | 333 | |||
Comprehensive income (loss) | (2,278) | (882) | 45 | 1,887 | 73 | (3,160) | 1,960 | 2,012 | ||
Comprehensive income (loss) attributable to AXA Equitable | $ (2,420) | (1,043) | (109) | 1,794 | (52) | $ (3,463) | 1,742 | 1,640 | ||
As Previously Reported | ||||||||||
Revenues: | ||||||||||
Policy charges and fee income | 914 | 865 | 896 | 1,761 | 2,626 | |||||
Premiums | 204 | 216 | 225 | 441 | 645 | |||||
Net derivative gains (losses) | (777) | (318) | 1,693 | (724) | 969 | 1,376 | 890 | (1,211) | ||
Total Revenues | 2,031 | 2,520 | 4,488 | 1,989 | 6,477 | 9,673 | 11,733 | 9,138 | ||
Benefits and other deductions: | ||||||||||
Policyholders’ benefits | 995 | 1,452 | 891 | 2,343 | 3,308 | |||||
Interest credited to policyholders’ account balances | 338 | 350 | 321 | 337 | 658 | 1,008 | 1,040 | 1,029 | ||
Other operating costs and expenses | 155 | 384 | 539 | |||||||
Compensation and benefits | 456 | |||||||||
Amortization of deferred policy acquisition costs | 10 | (33) | (82) | 125 | 43 | 15 | ||||
Total benefits and other deductions | 2,115 | 2,581 | 2,691 | 2,562 | 5,253 | 7,800 | 9,478 | 8,516 | ||
Income (loss) from operations, before income taxes | (84) | (61) | 1,797 | (573) | 1,224 | 1,873 | ||||
Income tax (expense) benefit | 44 | 127 | (338) | 260 | (78) | (196) | ||||
Net income (loss) | (40) | 66 | 1,459 | (313) | 1,146 | 1,677 | ||||
Less: net (income) loss attributable to the noncontrolling interest | (154) | |||||||||
Net income (loss) attributable to AXA Equitable | (194) | (56) | 1,346 | (431) | 915 | 1,324 | ||||
Statements of Comprehensive Income (Loss): | ||||||||||
Net income (loss) | (40) | 66 | 1,459 | (313) | 1,146 | 1,677 | ||||
Change in unrealized gains (losses), net of reclassification adjustment | (55) | 314 | 144 | 458 | 362 | |||||
Other comprehensive income (loss) | (52) | 294 | 179 | 473 | 380 | |||||
Comprehensive income (loss) | (789) | 14 | 1,753 | (134) | 1,619 | 2,057 | ||||
Comprehensive income (loss) attributable to AXA Equitable | (950) | (140) | 1,660 | (259) | 1,401 | 1,685 | ||||
Impact of Revisions | ||||||||||
Revenues: | ||||||||||
Policy charges and fee income | (7) | 49 | 23 | 72 | (21) | |||||
Premiums | 4 | 9 | 7 | 16 | 20 | |||||
Net derivative gains (losses) | (83) | (136) | (196) | (137) | (332) | (432) | (119) | (124) | ||
Total Revenues | (83) | (139) | (138) | (107) | (244) | (433) | (119) | (124) | ||
Benefits and other deductions: | ||||||||||
Policyholders’ benefits | (88) | 45 | 15 | 60 | (62) | |||||
Interest credited to policyholders’ account balances | (83) | (153) | (113) | (98) | (210) | (327) | (119) | (124) | ||
Other operating costs and expenses | (6) | (3) | (9) | |||||||
Compensation and benefits | 70 | |||||||||
Amortization of deferred policy acquisition costs | 48 | 21 | 31 | (97) | (66) | (47) | ||||
Total benefits and other deductions | 35 | (220) | (43) | (183) | (225) | (436) | $ (119) | $ (124) | ||
Income (loss) from operations, before income taxes | (118) | 81 | (95) | 76 | (19) | 3 | ||||
Income tax (expense) benefit | 25 | (26) | 34 | (26) | 8 | (1) | ||||
Net income (loss) | (93) | 55 | (61) | 50 | (11) | 2 | ||||
Less: net (income) loss attributable to the noncontrolling interest | 0 | |||||||||
Net income (loss) attributable to AXA Equitable | (93) | 55 | (61) | 50 | (11) | 2 | ||||
Statements of Comprehensive Income (Loss): | ||||||||||
Net income (loss) | (93) | 55 | (61) | 50 | (11) | 2 | ||||
Change in unrealized gains (losses), net of reclassification adjustment | (24) | (28) | (20) | (48) | (47) | |||||
Other comprehensive income (loss) | (24) | (28) | (20) | (48) | (47) | |||||
Comprehensive income (loss) | (93) | 31 | (89) | 30 | (59) | (45) | ||||
Comprehensive income (loss) attributable to AXA Equitable | $ (93) | $ 31 | (89) | 30 | (59) | $ (45) | ||||
As Revised and Adjusted Herein | ||||||||||
Revenues: | ||||||||||
Policy charges and fee income | 914 | 919 | 1,833 | |||||||
Premiums | 225 | 232 | 457 | |||||||
Net derivative gains (losses) | 1,497 | (861) | 637 | |||||||
Total Revenues | 4,350 | 1,882 | 6,233 | |||||||
Benefits and other deductions: | ||||||||||
Policyholders’ benefits | 1,497 | 906 | 2,403 | |||||||
Interest credited to policyholders’ account balances | 208 | 239 | 448 | |||||||
Other operating costs and expenses | 149 | 381 | 530 | |||||||
Amortization of deferred policy acquisition costs | (51) | 28 | (23) | |||||||
Total benefits and other deductions | 2,648 | 2,379 | 5,028 | |||||||
Income (loss) from operations, before income taxes | 1,702 | (497) | 1,205 | |||||||
Income tax (expense) benefit | (304) | 234 | (70) | |||||||
Net income (loss) | 1,398 | (263) | 1,135 | |||||||
Net income (loss) attributable to AXA Equitable | 1,285 | (381) | 904 | |||||||
Statements of Comprehensive Income (Loss): | ||||||||||
Net income (loss) | 1,398 | (263) | 1,135 | |||||||
Change in unrealized gains (losses), net of reclassification adjustment | 286 | 124 | 410 | |||||||
Other comprehensive income (loss) | 266 | 159 | 425 | |||||||
Comprehensive income (loss) | 1,664 | (104) | 1,560 | |||||||
Comprehensive income (loss) attributable to AXA Equitable | 1,571 | (229) | 1,342 | |||||||
Impact of Accounting Change | ||||||||||
Revenues: | ||||||||||
Policy charges and fee income | (68) | (67) | (135) | |||||||
Premiums | 0 | 0 | 0 | |||||||
Net derivative gains (losses) | 266 | 459 | 725 | |||||||
Total Revenues | 198 | 392 | 590 | |||||||
Benefits and other deductions: | ||||||||||
Policyholders’ benefits | (134) | 69 | (65) | |||||||
Interest credited to policyholders’ account balances | 0 | 0 | 0 | |||||||
Other operating costs and expenses | 0 | 0 | 0 | |||||||
Amortization of deferred policy acquisition costs | 2 | 1 | 3 | |||||||
Total benefits and other deductions | (132) | 70 | (62) | |||||||
Income (loss) from operations, before income taxes | 330 | 322 | 652 | |||||||
Income tax (expense) benefit | (115) | (113) | (228) | |||||||
Net income (loss) | 215 | 209 | 424 | |||||||
Net income (loss) attributable to AXA Equitable | 215 | 209 | 424 | |||||||
Statements of Comprehensive Income (Loss): | ||||||||||
Net income (loss) | 215 | 209 | 424 | |||||||
Change in unrealized gains (losses), net of reclassification adjustment | 8 | (32) | (24) | |||||||
Other comprehensive income (loss) | 8 | (32) | (24) | |||||||
Comprehensive income (loss) | 223 | 177 | 400 | |||||||
Comprehensive income (loss) attributable to AXA Equitable | $ 223 | $ 177 | $ 400 |
REVISION OF PRIOR PERIOD FINA88
REVISION OF PRIOR PERIOD FINANCIAL STATEMENTS - STATEMENT OF EQUITY DISCLOSURES (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||||||
Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Sep. 30, 2017 | Dec. 31, 2017 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Beginning of year | $ 14,506 | ||||||||
Beginning of year | $ 18,540 | $ 19,564 | $ 16,257 | 14,505 | $ 19,564 | ||||
Net income (loss) | (1,958) | (133) | 121 | 1,613 | $ (54) | (2,091) | $ 1,559 | $ 1,679 | |
Net income (loss) | (2,114) | (287) | (1) | 1,500 | (172) | (2,401) | 1,328 | 1,326 | |
Other comprehensive income (loss) | (320) | (76) | 274 | 127 | (1,069) | 401 | 333 | ||
End of year | 14,506 | ||||||||
End of year | 16,964 | 18,540 | 16,139 | 16,257 | 14,505 | 16,964 | 16,257 | 16,139 | |
As Previously Reported | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Beginning of year | 15,969 | ||||||||
Beginning of year | 18,633 | 17,608 | 15,969 | ||||||
Net income (loss) | (40) | 66 | 1,459 | (313) | 1,146 | 1,677 | |||
Net income (loss) | (194) | (56) | 1,346 | (431) | 915 | 1,324 | |||
Other comprehensive income (loss) | (52) | 294 | 179 | 473 | 380 | ||||
End of year | 15,969 | ||||||||
End of year | 18,633 | 15,959 | 17,608 | 15,969 | 17,608 | 15,959 | |||
Impact of Revisions | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Beginning of year | 238 | ||||||||
Beginning of year | (93) | 127 | 237 | ||||||
Net income (loss) | (93) | 55 | (61) | 50 | (11) | 2 | |||
Net income (loss) | (93) | 55 | (61) | 50 | (11) | 2 | |||
Other comprehensive income (loss) | (24) | (28) | (20) | (48) | (47) | ||||
End of year | 238 | ||||||||
End of year | (93) | 180 | 127 | 237 | 127 | 180 | |||
As Revised and Adjusted Herein | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Beginning of year | 16,207 | ||||||||
Beginning of year | 17,735 | 16,206 | |||||||
Net income (loss) | 1,398 | (263) | 1,135 | ||||||
Net income (loss) | 1,285 | (381) | 904 | ||||||
Other comprehensive income (loss) | 266 | 159 | 425 | ||||||
End of year | 16,207 | ||||||||
End of year | 17,735 | 16,206 | 17,735 | ||||||
Impact of Accounting Change | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Beginning of year | (1,701) | ||||||||
Beginning of year | (1,478) | (1,701) | |||||||
Net income (loss) | 215 | 209 | 424 | ||||||
Net income (loss) | 215 | 209 | 424 | ||||||
Other comprehensive income (loss) | 8 | (32) | (24) | ||||||
End of year | (1,701) | ||||||||
End of year | (1,478) | (1,701) | (1,478) | ||||||
Parent | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Beginning of year | 11,460 | ||||||||
Beginning of year | 15,452 | 13,273 | |||||||
End of year | 11,460 | ||||||||
End of year | 13,925 | 15,452 | 13,170 | 13,273 | 13,925 | 13,273 | 13,170 | ||
Parent | As Previously Reported | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Beginning of year | 12,934 | ||||||||
Beginning of year | 15,545 | 14,635 | |||||||
End of year | 12,934 | ||||||||
End of year | 15,545 | 12,990 | 14,635 | 14,635 | 12,990 | ||||
Parent | Impact of Revisions | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Beginning of year | 227 | ||||||||
Beginning of year | (93) | 116 | |||||||
End of year | 227 | ||||||||
End of year | (93) | 180 | 116 | 116 | 180 | ||||
Parent | As Revised and Adjusted Herein | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Beginning of year | 13,161 | ||||||||
Beginning of year | 14,751 | ||||||||
End of year | 13,161 | ||||||||
End of year | 14,751 | 14,751 | |||||||
Parent | Impact of Accounting Change | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Beginning of year | (1,701) | ||||||||
Beginning of year | (1,478) | ||||||||
End of year | (1,701) | ||||||||
End of year | (1,478) | (1,478) | |||||||
Retained Earnings | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Beginning of year | 7,479 | 6,151 | 6,151 | 6,151 | |||||
Beginning of year | 8,731 | 9,010 | 7,479 | 5,979 | 6,151 | 9,010 | 6,151 | 6,151 | |
Impact of adoption of revenue recognition standard ASC 606 | $ 8 | ||||||||
Net income (loss) | (287) | ||||||||
Net income (loss) | 1,328 | ||||||||
End of year | 7,479 | 7,479 | |||||||
End of year | 6,617 | 8,731 | 7,476 | 7,479 | 5,979 | 6,617 | 7,479 | 7,476 | |
Retained Earnings | As Previously Reported | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Beginning of year | 5,941 | 5,941 | 5,941 | ||||||
Beginning of year | 8,779 | 7,864 | 7,864 | 7,864 | |||||
Beginning of year | 8,824 | 9,010 | 7,411 | 7,842 | 9,010 | 7,842 | 7,842 | ||
Impact of adoption of revenue recognition standard ASC 606 | 8 | ||||||||
Net income (loss) | (194) | ||||||||
Net income (loss) | 915 | ||||||||
End of year | 8,779 | 8,779 | |||||||
End of year | 7,265 | 7,265 | |||||||
End of year | 8,824 | 7,411 | |||||||
Retained Earnings | Impact of Revisions | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Beginning of year | 210 | 210 | 210 | ||||||
Beginning of year | 150 | 161 | 161 | 161 | |||||
Beginning of year | (93) | 0 | 233 | 183 | 0 | 183 | 183 | ||
Impact of adoption of revenue recognition standard ASC 606 | $ 0 | ||||||||
Net income (loss) | (11) | ||||||||
End of year | 150 | 150 | |||||||
End of year | 211 | 211 | |||||||
End of year | (93) | 233 | |||||||
Retained Earnings | As Revised and Adjusted Herein | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Beginning of year | 8,929 | 8,025 | 8,025 | 8,025 | |||||
Beginning of year | 7,644 | 8,025 | 8,025 | 8,025 | |||||
Net income (loss) | 904 | ||||||||
End of year | 8,929 | 8,929 | |||||||
End of year | 7,644 | ||||||||
Retained Earnings | Impact of Accounting Change | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Beginning of year | (1,450) | (1,874) | (1,874) | (1,874) | |||||
Beginning of year | (1,665) | (1,874) | (1,874) | (1,874) | |||||
Net income (loss) | 424 | ||||||||
End of year | (1,450) | (1,450) | |||||||
End of year | (1,665) | ||||||||
Accumulated other comprehensive income (loss) attributable to AXA Equitable | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Beginning of year | 431 | 137 | 17 | 17 | 17 | ||||
Beginning of year | 598 | 431 | 17 | 598 | 17 | 17 | |||
Other comprehensive income (loss) | (306) | 294 | 120 | (1,062) | 414 | 314 | |||
End of year | 431 | 137 | 431 | ||||||
End of year | (464) | 331 | 431 | (464) | 431 | 331 | |||
Accumulated other comprehensive income (loss) attributable to AXA Equitable | As Previously Reported | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Beginning of year | 1 | 1 | 1 | ||||||
Beginning of year | 493 | 179 | 7 | 7 | 7 | ||||
Beginning of year | 7 | 7 | 7 | ||||||
Other comprehensive income (loss) | 172 | 486 | 361 | ||||||
End of year | 493 | 179 | 493 | ||||||
End of year | 362 | 362 | |||||||
Accumulated other comprehensive income (loss) attributable to AXA Equitable | Impact of Revisions | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Beginning of year | 16 | 16 | 16 | ||||||
Beginning of year | (34) | (6) | 14 | 14 | 14 | ||||
Beginning of year | 14 | 14 | 14 | ||||||
Other comprehensive income (loss) | (20) | (48) | (47) | ||||||
End of year | (34) | (6) | (34) | ||||||
End of year | (31) | (31) | |||||||
Accumulated other comprehensive income (loss) attributable to AXA Equitable | As Revised and Adjusted Herein | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Beginning of year | 459 | 173 | 21 | 21 | 21 | ||||
Beginning of year | 21 | 21 | 21 | ||||||
Other comprehensive income (loss) | 152 | 438 | |||||||
End of year | 459 | 173 | 459 | ||||||
Accumulated other comprehensive income (loss) attributable to AXA Equitable | Impact of Accounting Change | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Beginning of year | (28) | (36) | (4) | (4) | (4) | ||||
Beginning of year | (4) | (4) | (4) | ||||||
Other comprehensive income (loss) | (32) | (24) | |||||||
End of year | (28) | (36) | (28) | ||||||
Noncontrolling Interest | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Beginning of year | 3,046 | 3,096 | 3,096 | 3,096 | |||||
Beginning of year | $ 3,095 | 2,984 | 3,096 | 3,095 | 3,096 | 3,096 | |||
Other comprehensive income (loss) | (7) | (13) | |||||||
End of year | 3,046 | ||||||||
End of year | $ 3,039 | 2,984 | $ 3,039 | 2,984 | |||||
Noncontrolling Interest | As Previously Reported | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Beginning of year | 3,035 | 3,085 | 3,085 | 3,085 | |||||
Beginning of year | 2,973 | 3,085 | 3,085 | 3,085 | |||||
End of year | 3,035 | ||||||||
End of year | 2,973 | 2,973 | |||||||
Noncontrolling Interest | Impact of Revisions | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Beginning of year | 11 | 11 | 11 | 11 | |||||
Beginning of year | 11 | 11 | 11 | 11 | |||||
End of year | 11 | ||||||||
End of year | 11 | 11 | |||||||
Noncontrolling Interest | As Revised and Adjusted Herein | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Beginning of year | 3,046 | 3,096 | 3,096 | 3,096 | |||||
Beginning of year | 2,984 | 3,096 | 3,096 | 3,096 | |||||
End of year | 3,046 | ||||||||
End of year | 2,984 | 2,984 | |||||||
Noncontrolling Interest | Impact of Accounting Change | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Beginning of year | 0 | 0 | 0 | 0 | |||||
Beginning of year | $ 0 | 0 | 0 | $ 0 | |||||
End of year | $ 0 | ||||||||
End of year | $ 0 | $ 0 |
REVISION OF PRIOR PERIOD FINA89
REVISION OF PRIOR PERIOD FINANCIAL STATEMENTS - CASH FLOW DISCLOSURES (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flow from operating activities: | ||||||||||
Net income (loss) | $ (1,958) | $ (133) | $ 121 | $ 1,613 | $ (54) | $ (2,091) | $ 1,559 | $ 1,679 | ||
Policy charges and fee income | (904) | (907) | (846) | (852) | (1,773) | (1,698) | (2,605) | |||
Interest credited to policyholders’ account balances | 240 | 255 | 197 | 208 | 239 | 495 | 448 | 681 | $ 921 | $ 905 |
Net derivative (gains) losses | $ 312 | 860 | 454 | (1,763) | 402 | 1,172 | (1,362) | (944) | (771) | 1,335 |
Changes in: | ||||||||||
Deferred policy acquisition costs | 58 | 29 | 89 | (20) | (32) | |||||
Future policy benefits | 241 | 396 | 1,303 | 1,208 | ||||||
Reinsurance recoverable | (23) | 15 | (194) | |||||||
Current and deferred income taxes | (77) | (188) | (645) | 204 | ||||||
Other, net | (52) | 151 | 416 | 84 | ||||||
Net cash provided by (used in) operating activities | (21) | 18 | $ 1,190 | (75) | 994 | 1,077 | (461) | |||
As Previously Reported | ||||||||||
Cash flow from operating activities: | ||||||||||
Net income (loss) | (40) | 66 | 1,459 | (313) | 1,146 | 1,677 | ||||
Policy charges and fee income | (914) | (865) | (896) | (1,761) | (2,626) | |||||
Interest credited to policyholders’ account balances | 338 | 350 | 321 | 337 | 658 | 1,008 | 1,040 | 1,029 | ||
Net derivative (gains) losses | 777 | 318 | (1,693) | 724 | (969) | (1,376) | (890) | 1,211 | ||
Changes in: | ||||||||||
Deferred policy acquisition costs | 10 | 125 | 43 | 15 | ||||||
Future policy benefits | 185 | 1,381 | 1,289 | |||||||
Reinsurance recoverable | (44) | (251) | ||||||||
Current and deferred income taxes | (52) | (327) | (16) | |||||||
Other, net | (122) | 154 | 93 | |||||||
Net cash provided by (used in) operating activities | (21) | 18 | (75) | 994 | 1,077 | (461) | ||||
Impact of Revisions | ||||||||||
Cash flow from operating activities: | ||||||||||
Net income (loss) | (93) | 55 | (61) | 50 | (11) | 2 | ||||
Policy charges and fee income | 7 | (49) | (23) | (72) | 21 | |||||
Interest credited to policyholders’ account balances | (83) | (153) | (113) | (98) | (210) | (327) | (119) | (124) | ||
Net derivative (gains) losses | 83 | $ 136 | 196 | 137 | 332 | 432 | 119 | 124 | ||
Changes in: | ||||||||||
Deferred policy acquisition costs | 48 | (97) | (66) | (47) | ||||||
Future policy benefits | (13) | (13) | (81) | |||||||
Reinsurance recoverable | 21 | 57 | ||||||||
Current and deferred income taxes | (25) | 26 | (8) | |||||||
Other, net | 70 | (3) | (9) | |||||||
Net cash provided by (used in) operating activities | $ 0 | 0 | 0 | $ 0 | $ 0 | $ 0 | ||||
As Revised and Adjusted Herein | ||||||||||
Cash flow from operating activities: | ||||||||||
Net income (loss) | 1,398 | (263) | 1,135 | |||||||
Policy charges and fee income | (914) | (919) | (1,833) | |||||||
Interest credited to policyholders’ account balances | 208 | 239 | 448 | |||||||
Net derivative (gains) losses | (1,497) | 861 | (637) | |||||||
Changes in: | ||||||||||
Deferred policy acquisition costs | 28 | (23) | ||||||||
Future policy benefits | 172 | 1,368 | ||||||||
Reinsurance recoverable | (23) | (194) | ||||||||
Current and deferred income taxes | (301) | (24) | ||||||||
Other, net | 151 | 84 | ||||||||
Net cash provided by (used in) operating activities | 18 | (75) | ||||||||
Impact of Accounting Change | ||||||||||
Cash flow from operating activities: | ||||||||||
Net income (loss) | 215 | 209 | 424 | |||||||
Policy charges and fee income | 68 | 67 | 135 | |||||||
Interest credited to policyholders’ account balances | 0 | 0 | 0 | |||||||
Net derivative (gains) losses | $ (266) | (459) | (725) | |||||||
Changes in: | ||||||||||
Deferred policy acquisition costs | 1 | 3 | ||||||||
Future policy benefits | 69 | (65) | ||||||||
Reinsurance recoverable | 0 | 0 | ||||||||
Current and deferred income taxes | 113 | 228 | ||||||||
Other, net | 0 | 0 | ||||||||
Net cash provided by (used in) operating activities | $ 0 | $ 0 |