DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION - shares | 9 Months Ended | |
Sep. 30, 2019 | Nov. 07, 2019 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2019 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2019 | |
Amendment Flag | false | |
Entity Registrant Name | AXA EQUITABLE LIFE INSURANCE CO | |
Entity Central Index Key | 0000727920 | |
Entity Current Reporting Status | Yes | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Shell Company | false | |
Entity Common Stock Shares Outstanding | 2,000,000 |
CONSOLIDATED BALANCE SHEET (UNA
CONSOLIDATED BALANCE SHEET (UNAUDITED) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 | |
ASSETS | |||
Fixed maturities available-for-sale, at fair value (amortized cost of $57,475 and $42,492) | $ 61,445 | $ 41,915 | |
Mortgage loans on real estate (net of valuation allowance of $0 and $7) | 12,005 | 11,818 | |
Real estate held for production of income | [1] | 27 | 52 |
Policy loans | 3,272 | 3,267 | |
Other equity investments | [1] | 1,148 | 1,144 |
Trading securities, at fair value | 8,444 | 15,166 | |
Other invested assets | 1,753 | 1,554 | |
Total investments | 88,094 | 74,916 | |
Cash and cash equivalents | 1,553 | 2,622 | |
Deferred policy acquisition costs | 4,237 | 5,011 | |
Amounts due from reinsurers | 3,008 | 3,124 | |
Loans to affiliates | 600 | 600 | |
GMIB reinsurance contract asset, at fair value | 2,853 | 1,991 | |
Current and deferred income taxes | 0 | 438 | |
Other assets | 3,071 | 2,763 | |
Separate Accounts assets | 118,907 | 108,487 | |
Total Assets | 222,323 | 199,952 | |
LIABILITIES | |||
Policyholders’ account balances | 53,060 | 46,403 | |
Future policy benefits and other policyholders' liabilities | 35,211 | 29,808 | |
Broker-dealer related payables | 221 | 69 | |
Securities sold under agreements to repurchase | 0 | 573 | |
Amounts due to reinsurers | 85 | 113 | |
Loans from affiliates | 0 | 572 | |
Current and deferred income taxes | 174 | 0 | |
Other liabilities | 1,368 | 1,460 | |
Separate Accounts liabilities | 118,907 | 108,487 | |
Total Liabilities | 209,026 | 187,485 | |
Redeemable noncontrolling interest (2) | [2] | 46 | 39 |
Commitments and contingent liabilities (Note 13) | |||
Equity attributable to AXA Equitable: | |||
Common stock, $1.25 par value; 2,000,000 shares authorized, issued and outstanding | 2 | 2 | |
Additional paid-in capital | 7,829 | 7,807 | |
Retained earnings | 3,270 | 5,098 | |
Accumulated other comprehensive income (loss) | 2,138 | (491) | |
Total AXA Equitable’s equity | 13,239 | 12,416 | |
Noncontrolling interest | 12 | 12 | |
Total equity | 13,251 | 12,428 | |
Total Liabilities, Redeemable Noncontrolling Interest and Equity | $ 222,323 | $ 199,952 | |
[1] | See Note 2 for details of balances with variable interest entities | ||
[2] | See Note 12 for detail of Redeemable noncontrolling interest. |
CONSOLIDATED BALANCE SHEET (U_2
CONSOLIDATED BALANCE SHEET (UNAUDITED) (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Fixed maturities available-for-sale, amortized cost | $ 57,475 | $ 42,492 |
Mortgage loans on real estate, valuation allowances | $ 0 | $ 7 |
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 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (LOSS) (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
REVENUES | ||||
Policy charges and fee income | $ 853 | $ 900 | $ 2,577 | $ 2,644 |
Premiums | 232 | 217 | 696 | 657 |
Net derivative gains (losses) | (342) | (2,000) | (2,075) | (3,102) |
Net investment income (loss) | 744 | 642 | 2,527 | 1,693 |
Total other-than-temporary impairment losses | 0 | (4) | 0 | (4) |
Other investment gains (losses), net | 201 | (5) | 181 | 77 |
Investment gains (losses), net: | 201 | (9) | 181 | 73 |
Investment management and service fees | 258 | 267 | 761 | 781 |
Other income | 0 | 10 | 40 | 41 |
Total revenues | 1,946 | 27 | 4,707 | 2,787 |
BENEFITS AND OTHER DEDUCTIONS | ||||
Policyholders’ benefits | 1,634 | 206 | 3,321 | 1,987 |
Interest credited to policyholders’ account balances | 280 | 259 | 837 | 754 |
Compensation and benefits | 70 | 77 | 237 | 300 |
Commissions | 153 | 146 | 462 | 465 |
Interest expense | 0 | 9 | 4 | 27 |
Amortization of deferred policy acquisition costs | 32 | (88) | 341 | 303 |
Other operating costs and expenses | 214 | 154 | 614 | 2,717 |
Total benefits and other deductions | 2,383 | 763 | 5,816 | 6,553 |
Income (loss) from continuing operations, before income taxes | (437) | (736) | (1,109) | (3,766) |
Income tax (expense) benefit from continuing operations | 175 | 196 | 284 | 828 |
Net income (loss) from continuing operations | (262) | (540) | (825) | (2,938) |
Less: Net (income) loss from discontinued operations, net of taxes and noncontrolling interest | 0 | (31) | 0 | (81) |
Net income (loss) | (262) | (509) | (825) | (2,857) |
Less: Net income (loss) attributable to the noncontrolling interest | 0 | 2 | 3 | 1 |
Net income (loss) attributable to AXA Equitable | $ (262) | $ (511) | $ (828) | $ (2,858) |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ (262) | $ (509) | $ (825) | $ (2,857) |
Other comprehensive income (loss) net of income taxes: | ||||
Change in unrealized gains (losses), net of reclassification adjustment | 574 | (403) | 2,629 | (1,458) |
Changes in defined benefit plan related items not yet recognized in periodic benefit cost, net of reclassification adjustment | 0 | (3) | 0 | (8) |
Other comprehensive income (loss) from discontinued operations | 0 | 3 | 0 | 1 |
Total other comprehensive income (loss), net of income taxes | 574 | (403) | 2,629 | (1,465) |
Comprehensive income (loss) attributable to AXA Equitable | $ 312 | $ (912) | $ 1,804 | $ (4,322) |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY (UNAUDITED) - USD ($) $ in Millions | Total | AXA Equitable Equity | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interest | Continuing OperationsNoncontrolling Interest | Discontinued OperationsNoncontrolling Interest | |
Beginning of year at Dec. 31, 2017 | $ 19,492 | $ 16,397 | $ 2 | $ 6,859 | $ 8,938 | $ 598 | $ 3,095 | $ 19 | $ 3,076 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Dividend to parent company | (1,100) | (1,100) | (1,100) | |||||||
Deconsolidation of real estate joint ventures | (8) | (8) | (8) | |||||||
Repurchase of AB Holding units | (59) | (59) | (59) | |||||||
Dividends paid to noncontrolling interest | (468) | (468) | (468) | |||||||
Net income (loss) | (2,440) | (2,858) | (2,858) | 418 | 1 | 417 | ||||
Other comprehensive income (loss) | (1,475) | (1,465) | (1,465) | (10) | (10) | |||||
Other | [1] | 927 | 912 | 912 | 15 | 15 | ||||
End of year at Sep. 30, 2018 | 14,902 | 11,894 | 2 | 7,771 | 4,988 | (867) | 3,008 | 12 | 2,996 | |
Beginning of year at Jun. 30, 2018 | 16,946 | 13,907 | 2 | 7,770 | 6,599 | (464) | 3,039 | 12 | 3,027 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Dividend to parent company | (1,100) | (1,100) | (1,100) | |||||||
Repurchase of AB Holding units | (34) | (34) | (34) | |||||||
Dividends paid to noncontrolling interest | (134) | (134) | (134) | |||||||
Net income (loss) | (368) | (511) | (511) | 143 | 143 | |||||
Other comprehensive income (loss) | (406) | (403) | (403) | (3) | (3) | |||||
Other | [1] | (2) | 1 | 1 | (3) | (3) | ||||
End of year at Sep. 30, 2018 | 14,902 | 11,894 | 2 | 7,771 | 4,988 | (867) | 3,008 | 12 | 2,996 | |
Beginning of year at Dec. 31, 2018 | 12,428 | 12,416 | 2 | 7,807 | 5,098 | (491) | 12 | 12 | 0 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Dividend to parent company | (1,000) | (1,000) | (1,000) | |||||||
Net income (loss) | (828) | (828) | (828) | |||||||
Other comprehensive income (loss) | 2,629 | 2,629 | 2,629 | |||||||
Other | 22 | 22 | 22 | |||||||
End of year at Sep. 30, 2019 | 13,251 | 13,239 | 2 | 7,829 | 3,270 | 2,138 | 12 | 12 | 0 | |
Beginning of year at Jun. 30, 2019 | 13,932 | 13,920 | 2 | 7,822 | 4,532 | 1,564 | 12 | 12 | 0 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Dividend to parent company | (1,000) | (1,000) | (1,000) | |||||||
Net income (loss) | (262) | (262) | (262) | |||||||
Other comprehensive income (loss) | 574 | 574 | 574 | |||||||
Other | 7 | 7 | 7 | |||||||
End of year at Sep. 30, 2019 | $ 13,251 | $ 13,239 | $ 2 | $ 7,829 | $ 3,270 | $ 2,138 | $ 12 | $ 12 | $ 0 | |
[1] | Includes impact of the GMxB unwind with AXA RE Arizona. See Note 12 in the Company’s Annual Report on Form 10-K. |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | ||
Cash flows from operating activities: | |||
Net income (loss) | [1] | $ (825) | $ (2,419) |
Adjustments to reconcile Net income (loss) to Net cash provided by (used in) operating activities: | |||
Interest credited to policyholders’ account balances | 837 | 754 | |
Policy charges and fee income | (2,577) | (2,644) | |
Net derivative (gains) losses | 2,075 | 3,106 | |
Investment (gains) losses, net | (181) | (73) | |
Realized and unrealized (gains) losses on trading securities | (421) | 206 | |
Non-cash long-term incentive compensation expense | 23 | 13 | |
Amortization and depreciation | [2] | 267 | 258 |
Amortization of deferred cost of reinsurance asset | 0 | 1,884 | |
Equity (income) loss from limited partnerships | [2] | (63) | (83) |
Cash received on the recapture of captive reinsurance | 0 | 1,273 | |
Changes in: | |||
Net broker-dealer and customer related receivables/payables | 3 | 414 | |
Reinsurance recoverable | (123) | 106 | |
Segregated cash and securities, net | 0 | (438) | |
Capitalization of DAC | [2] | (466) | (432) |
Future policy benefits | 1,035 | (599) | |
Current and deferred income taxes | (81) | (664) | |
Other, net | (215) | 448 | |
Net cash provided by (used in) operating activities | (712) | 1,110 | |
Proceeds from the sale/maturity/prepayment of: | |||
Fixed maturities, available-for-sale | 9,394 | 5,942 | |
Mortgage loans on real estate | 708 | 375 | |
Trading account securities | 8,216 | 6,990 | |
Real estate joint ventures | 3 | 140 | |
Short-term investments | [2] | 1,916 | 1,806 |
Other | 145 | 204 | |
Payment for the purchase/origination of: | |||
Fixed maturities, available-for-sale | (23,834) | (6,422) | |
Mortgage loans on real estate | (913) | (1,485) | |
Trading account securities | (923) | (8,103) | |
Short-term investments | [2] | (2,134) | (1,326) |
Other | (305) | (146) | |
Cash settlements related to derivative instruments | 191 | (1,076) | |
Issuance of loans to affiliates | 0 | (1,100) | |
Repayments of loans to affiliates | 0 | 700 | |
Investment in capitalized software, leasehold improvements and EDP equipment | (49) | (79) | |
Other, net | 0 | 285 | |
Net cash provided by (used in) investing activities | (7,585) | (3,295) | |
Policyholders’ account balances: | |||
Deposits | 9,464 | 6,184 | |
Withdrawals | (3,433) | (3,254) | |
Transfers (to) from Separate Accounts | 1,427 | 1,379 | |
Change in short-term financings | 0 | (168) | |
Change in collateralized pledged assets | 3 | (62) | |
Change in collateralized pledged liabilities | 1,898 | 279 | |
Increase (decrease) in overdrafts payable | 0 | (39) | |
Shareholder dividend paid | (1,000) | (1,100) | |
Purchases of AB Holding Units to fund long-term incentive compensation plan awards, net | 0 | (83) | |
Repurchase of AB Holding Units | 0 | (59) | |
Purchase (redemption) of noncontrolling interests of consolidated company-sponsored investment funds | 14 | (519) | |
Distribution to noncontrolling interests in consolidated subsidiaries | 0 | (468) | |
Repayment of loans from affiliates | (572) | 13 | |
Increase (decrease) in securities sold under agreement to repurchase | (573) | 0 | |
Other, net | 0 | (1) | |
Net cash provided by (used in) financing activities | 7,228 | 2,102 | |
Effect of exchange rate changes on Cash and cash equivalents | 0 | (9) | |
Change in Cash and cash equivalents | (1,069) | (92) | |
Cash and cash equivalents, beginning of year | 2,622 | 3,409 | |
Cash and cash equivalents, end of period | 1,553 | 3,317 | |
Cash and cash equivalents of disposed subsidiary: | |||
Beginning of year | 1,009 | ||
End of period | 635 | ||
Cash and cash equivalents of continuing operations: | |||
Beginning of year | 2,622 | 2,400 | |
End of period | $ 1,553 | 2,682 | |
Cash flows of disposed subsidiary: | |||
Operating activities | 705 | ||
Investing activities | 204 | ||
Financing activities | (1,274) | ||
Effect of exchange rate changes on Cash and cash equivalents | (9) | ||
Non-cash transactions during the period: | |||
(Settlement) issuance of long-term debt | (202) | ||
Transfer of assets to reinsurer | (604) | ||
Repayment of loans from affiliates | $ 300 | ||
[1] | Net income (loss) includes $438 million in the nine months ended September 30, 2018 of the discontinued operations that are not included in Net income (loss) in the Consolidated Statements of Income (Loss). | ||
[2] | Prior period amounts have been reclassified to conform to the current period’s presentation. See Note 15 for further information. |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Net (income) loss attributable to the noncontrolling interest | $ 0 | $ 2 | $ 3 | $ 1 |
Alliance Bernstein | Discontinued Operations | ||||
Net (income) loss attributable to the noncontrolling interest | $ 127 | $ 438 |
ORGANIZATION
ORGANIZATION | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | ORGANIZATION Consolidation AXA Equitable Life Insurance Company’s (“AXA Equitable” and, collectively with its consolidated subsidiaries, the “Company”) primary business is providing variable annuity, life insurance and employee benefit products to both individuals and businesses. The Company is an indirect, wholly-owned subsidiary of AXA Equitable Holdings, Inc. (“Holdings”). As of September 30, 2019 and December 31, 2018 , AXA S.A. (“AXA”), a French holding company for the AXA Group, owned approximately 39% and 59% , respectively, of the outstanding common stock of Holdings. 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. Discontinued Operations In the fourth quarter of 2018, the Company transferred its economic interest in the business of AllianceBernstein Holding L.P. (“AB Holding”), AllianceBernstein L.P. (“ABLP”) and their subsidiaries (collectively, “AB”) to a newly created wholly-owned subsidiary of Holdings (the “AB Business Transfer”). See Note 14 for additional information. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | SIGNIFICANT ACCOUNTING POLICIES 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 Annual Report on Form 10-K for the year ended December 31, 2018. The terms “ third quarter 2019 ” and “ third quarter 2018 ” refer to the three months ended September 30, 2019 and 2018 , respectively. The terms “first nine months of 2019” and “first nine months of 2018 ” refer to the nine months ended September 30, 2019 and 2018 , respectively. Adoption of New Accounting Pronouncements Description Effect on the Financial Statement or Other Significant Matters ASU 2017-12: Derivatives and Hedging (Topic 815), as clarified and amended by ASU 2019-04: Codification Improvements to Topic 326, Financial Instruments—Credit Losses; Topic 815, Derivatives and Hedging; and Topic 825, Financial Instruments The amendments in these ASUs better align an entity’s risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. On January 1, 2019, the Company adopted the new hedging guidance. Adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. Description Effect on the Financial Statement or Other Significant Matters ASU 2017-08: Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20) This ASU 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. On January 1, 2019, the Company adopted the new guidance on accounting for certain premiums on callable debt securities. As the Company’s existing accounting practices aligned with the guidance in the ASU, adoption of the new standard did not have a material impact on the Company’s consolidated financial statements. ASU 2016-02: Leases (Topic 842) This ASU contains 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. Lessor accounting will remain substantially unchanged from the current model but has been updated to align with certain changes made to the lessee model. On January 1, 2019, the Company adopted the new leases standard using the simplified modified retrospective transition method, as of the adoption date. Prior comparable periods will not be adjusted or presented under this method. We applied several practical expedients offered by ASC 842 upon adoption of this standard. These included continuing to account for existing leases based on judgment made under legacy U.S. GAAP as it relates to determining classification of leases, unamortized initial direct costs and whether contracts are leases or contain leases. We also used the practical expedient to use hindsight in determining lease terms (using knowledge and expectations as of the standard’s adoption date instead of the previous assumptions under legacy U.S. GAAP) and evaluated impairment of our right-of-use (“RoU”) assets in the transition period (using most up-to-date information.) Adoption of this standard resulted in the recognition, as of January 1, 2019, of additional RoU operating lease assets of $347 million reported in Other assets and operating lease liabilities of $439 million reported in Other liabilities in accompanying consolidated balance sheets. The operating RoU assets recognized as of January 1, 2019 are net of deferred rent of $58 million and liabilities associated with previously recognized impairments of $34 million. See Note 8 for additional information. Future Adoption of New Accounting Pronouncements Description Effective Date and Method of Adoption Effect on the Financial Statement or Other Significant Matters ASU 2018-17: Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities This ASU provides guidance requiring that indirect interests held through related parties in common control arrangements be considered on a proportional basis for determining whether fees paid to decision makers and service providers are variable interests. Effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted. All entities are required to apply the amendments in this update retrospectively with a cumulative-effect adjustment to retained earnings at the beginning of the earliest period presented. The Company will adopt this new standard effective for January 1, 2020. Management does not expect the adoption of this standard to materially impact the Company’s financial position or results of operations. ASU 2018-13: Fair Value Measurement (Topic 820) This ASU improves the effectiveness of fair value disclosures in the notes to financial statements. Amendments in this ASU modify disclosure requirements in Topic 820, including the removal or modification of certain disclosure requirements, and the addition of new disclosure requirements. Effective for fiscal years beginning after December 15, 2019. Early adoption is permitted, with the option to early adopt amendments to remove or modify disclosures, with full adoption of additional requirements delayed until their effective date. Amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively. All other amendments should be applied retrospectively. Management has elected to early adopt the removed disclosures relating to transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for timing of transfers between levels and valuation processes for Level 3 fair value measurements. The Company will delay adoption of the additional disclosures until their effective date. Description Effective Date and Method of Adoption Effect on the Financial Statement or Other Significant Matters ASU 2018-12: Financial Services—Insurance (Topic 944) This ASU provides targeted improvements to existing recognition, measurement, presentation, and disclosure requirements for long-duration contracts issued by an insurance entity. The ASU primarily impacts four key areas, including: Effective for fiscal years beginning after December 31, 2020. Early adoption is permitted. On October 16, 2019, the FASB affirmed its previous decision to delay the effective date to fiscal years beginning after December 15, 2021, and interim periods within those fiscal years. Management currently is evaluating the impact that adoption of this guidance will have on the Company’s consolidated financial statements, however the adoption of the ASU is expected to have a significant impact on the Company’s consolidated financial condition, results of operations, cash flows and required disclosures, as well as processes and controls. Measurement of the liability for future policy benefits for traditional and limited payment contracts. The ASU requires companies to review, and if necessary, update, cash flow assumptions at least annually for non-participating traditional and limited-payment insurance contracts. Interest rates used to discount the liability will need to be updated quarterly using an upper medium grade (low credit risk) fixed-income instrument yield. For the liability for future policyholder benefits for traditional and limited payment contracts, companies can elect one of two adoption methods. Companies can either elect a modified retrospective transition method applied to contracts in force as of the beginning of the earliest period presented on the basis of their existing carrying amounts, adjusted for the removal of any related amounts in AOCI or a full retrospective transition method using actual historical experience information as of contract inception. The same adoption method must be used for deferred policy acquisition costs. Measurement of market risk benefits (“MRBs”). MRBs, as defined under the ASU, will encompass certain GMxB features associated with variable annuity products and other general account annuities with other than nominal market risk. The ASU requires MRBs to be measured at fair value with changes in value attributable to changes in instrument-specific credit risk recognized in OCI. Amortization of deferred policy acquisition costs. The ASU simplifies the amortization of deferred policy acquisition costs and other balances amortized in proportion to premiums, gross profits, or gross margins, requiring such balances to be amortized on a constant level basis over the expected term of the contracts. Deferred costs will be required to be written off for unexpected contract terminations but will not be subject to impairment testing. Expanded footnote disclosures. The ASU requires additional disclosures including disaggregated rollforwards of beginning to ending balances of the liability for future policy benefits, policyholder account balances, MRBs, Separate Accounts liabilities and deferred policy acquisition costs. Companies will also be required to disclose information about significant inputs, judgements, assumptions and methods used in measurement. For MRBs, the ASU should be applied retrospectively as of the beginning of the earliest period presented. For deferred policy acquisition costs, companies can elect one of two adoption methods. Companies can either elect a modified retrospective transition method applied to contracts in force as of the beginning of the earliest period presented on the basis of their existing carrying amounts, adjusted for the removal of any related amounts in AOCI or a full retrospective transition method using actual historical experience information as of contract inception. The same adoption method must be used for the liability for future policyholder benefits for traditional and limited payment contracts. Description Effective Date and Method of Adoption Effect on the Financial Statement or Other Significant Matters ASU 2016-13: Financial Instruments—Credit Losses (Topic 326), as clarified and amended by ASU 2018-19: Codification Improvements to Topic 326, Financial Instruments—Credit Losses, ASU 2019-04: Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments and ASU 2019-05: Financial Instruments—Credit Losses (Topic 326) Targeted Transition Relief ASU 2016-13 contains new guidance which 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. Effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted as of the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. These amendments should be applied through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. The Company is continuing to develop, validate and implement its updated expected credit loss models, processes and controls related to the identified financial assets that fall within the scope of the new standard. While Management expects the adoption will not materially impact the Company’s financial position or results of operations, it currently anticipates that the standard will have the most impact to its commercial and agricultural mortgage loan portfolios. However, the extent of the impact will depend on various factors including the economic environment, structure and size of the Company’s loan portfolio and other assets impacted by the standard. Accounting and Consolidation of Variable Interest Entities (“VIEs”) At September 30, 2019 , the Company held $1.1 billion of investment assets in the form of equity interests issued by non-corporate legal entities determined under the 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 sheets as Other equity investments and to apply the equity method of accounting for these positions. The net assets of these non-consolidated VIEs are $169.6 billion at September 30, 2019 . The Company’s maximum exposure to loss from its direct involvement with these VIEs is the carrying value of its investment of $1.1 billion and $865 million of unfunded commitments at September 30, 2019 . The Company has no further economic interest in these VIEs in the form of guarantees, derivatives, credit enhancements or similar instruments and obligations. At September 30, 2019 , 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 Life Insurance Company (“AXA Equitable Life”) and AXA France and holds an investment in a real estate venture. Included in the Company’s consolidated balance sheet at September 30, 2019 related to this VIE is $33 million of Real estate held for production of income. In addition, one non-consolidated real estate joint venture totaling $19 million at September 30, 2019 has been deemed to be “held for sale” and is reported in Other invested assets. Assumption Updates and Model Changes The Company conducts its annual review of its assumptions and models during the third quarter of each year. The annual review encompasses assumptions underlying the valuation of unearned revenue liabilities, embedded derivatives for the Company’s insurance business, liabilities for future policyholder benefits, deferred policy acquisition cost (“DAC”) and deferred sales inducement (“DSI”) assets. There was no material impact from model changes during the third quarter of 2019 and 2018 to our Income (loss) from continuing operations, before income taxes or Net income (loss). The net impact of assumption changes in the third quarter of 2019 decreased Policy charges and fee income by $11 million , increased Policyholders’ benefits by $886 million , increased Net derivative losses by $548 million , decreased Interest credited to policyholders’ account balances by $14 million and decreased Amortization of DAC by $77 million . This resulted in a decrease in Income (loss) from operations, before income taxes of $1.4 billion and decreased Net income (loss) by $1.1 billion . The net impact of assumption changes in the third quarter of 2018 decreased Policy charges and fee income by $12 million , decreased Policyholders’ benefits by $684 million , increased Net derivative losses by $1.1 billion and decreased the Amortization of DAC by $165 million . This resulted in a decrease in Income (loss) from operations, before income taxes of $228 million and decreased Net income (loss) by $187 million . Reclassification of DAC Capitalization During the fourth quarter of 2018, the Company changed the presentation of the capitalization of DAC in the consolidated statements of income for all prior periods presented herein by netting the capitalized amounts within the applicable expense line items, such as Compensation and benefits, Commissions and Other operating costs and expenses. Previously, the Company had netted the capitalized amounts within the Amortization of DAC. There was no impact on Net income (loss) or Comprehensive income (loss) from this reclassification. The reclassification adjustments for the three and nine months ended September 30, 2018 are presented in the table below. Capitalization of DAC reclassified to Compensation and benefits, Commissions and Other operating costs and expenses reduced the amounts previously reported in those expense line items, while the capitalization of DAC reclassified from the Amortization of deferred policy acquisition costs line item increases that expense line item. Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 (in millions) Reductions to expense line items: Compensation and benefits $ 33 $ 98 Commissions 118 331 Other operating costs and expenses — 3 Total reductions $ 151 $ 432 Increase to expense line item: Amortization of deferred policy acquisition costs $ 151 $ 432 Revision of Prior Period Financial Statements During the fourth quarter of 2018, the Company identified certain cash flows that were incorrectly classified in the Company’s consolidated statements of cash flows. The Company has determined that these misclassifications were not material to its financial statements of any period. The impact of items included in the revision tables within Note 15 on the consolidated statement of cash flows for the nine months ended September 30, 2018 were corrected in the comparative consolidated statements of cash flows included herein . See Note 15 for further information. |
INVESTMENTS
INVESTMENTS | 9 Months Ended |
Sep. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | INVESTMENTS Fixed Maturities The following tables provide information relating to fixed maturities classified as available-for-sale (“AFS”). Available-for-Sale Fixed Maturities by Classification Amortized Gross Unrealized Gross Unrealized Fair OTTI (in millions) September 30, 2019: Fixed Maturities: Corporate (1) $ 41,221 $ 2,189 $ 49 $ 43,361 $ — U.S. Treasury, government and agency 14,036 1,743 55 15,724 — States and political subdivisions 567 79 1 645 — Foreign governments 481 42 6 517 — Residential mortgage-backed (2) 170 12 — 182 — Asset-backed (3) 600 4 2 602 — Redeemable preferred stock 400 17 3 414 — Total at September 30, 2019 $ 57,475 $ 4,086 $ 116 $ 61,445 $ — December 31, 2018: Fixed Maturities: Corporate (1) $ 26,690 $ 385 $ 699 $ 26,376 $ — U.S. Treasury, government and agency 13,646 143 454 13,335 — States and political subdivisions 408 47 1 454 — Foreign governments 515 17 13 519 — Residential mortgage-backed (2) 193 9 — 202 — Asset-backed (3) 600 1 11 590 2 Redeemable preferred stock 440 16 17 439 — Total at December 31, 2018 $ 42,492 $ 618 $ 1,195 $ 41,915 $ 2 ______________ (1) Corporate fixed maturities includes both public and private issues. (2) Includes publicly traded agency pass-through securities and collateralized obligations. (3) Includes credit-tranched securities collateralized by sub-prime mortgages and other asset types and credit tenant loans. (4) Amounts represent OTTI losses in AOCI, which were not included in Net income (loss). The contractual maturities of AFS fixed maturities at September 30, 2019 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. Contractual Maturities of Available-for-Sale Fixed Maturities Amortized Cost Fair Value (in millions) September 30, 2019: Due in one year or less $ 3,099 $ 3,118 Due in years two through five 13,296 13,691 Due in years six through ten 15,689 16,769 Due after ten years 24,221 26,669 Subtotal 56,305 60,247 Residential mortgage-backed 170 182 Asset-backed 600 602 Redeemable preferred stock 400 414 Total at September 30, 2019 $ 57,475 $ 61,445 The following table shows proceeds from sales, gross gains (losses) from sales for AFS fixed maturities during the three and nine months ended September 30, 2019 and 2018 : Proceeds and Gains (Losses) on Sales for Available-for-Sale Fixed Maturities Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 (in millions) Proceeds from sales $ 3,839 $ 973 $ 6,756 $ 4,774 Gross gains on sales $ 207 $ 6 $ 224 $ 140 Gross losses on sales $ (4 ) $ (4 ) $ (25 ) $ (59 ) Total OTTI $ — $ (4 ) $ — $ (4 ) Non-credit losses recognized in OCI — — — — Credit losses recognized in Net income (loss) $ — $ (4 ) $ — $ (4 ) The following table sets forth the amount of credit loss impairments on AFS fixed maturities held by the Company at the dates indicated and the corresponding changes in such amounts: Available-for-Sale Fixed Maturities - Credit Loss Impairments Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 (in millions) Balances, beginning of period $ (18 ) $ (9 ) $ (46 ) $ (10 ) Previously recognized impairments on securities that matured, paid, prepaid or sold 3 — 31 1 Recognized impairments on securities impaired to fair value this period (1) — — — — Impairments recognized this period on securities not previously impaired — (4 ) — (4 ) 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 September 30, $ (15 ) $ (13 ) $ (15 ) $ (13 ) ______________ (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. 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 : Net Unrealized Gains (Losses) on Available-for-Sale Fixed Maturities Net DAC Policyholders’ Deferred AOCI Gain (in millions) Balances at July 1, 2019 $ 2,622 $ (534 ) $ (86 ) $ (420 ) $ 1,582 Net investment gains (losses) arising during the period 1,548 — — — 1,548 Reclassification adjustment: — Included in Net income (loss) (201 ) — — — (201 ) Excluded from Net income (loss) (1) — — — — — Impact of net unrealized investment gains (losses) on: DAC — (291 ) — — (291 ) Deferred income taxes — — — (156 ) (156 ) Policyholders’ liabilities — — (315 ) — (315 ) Net unrealized investment gains (losses) excluding OTTI losses 3,969 (825 ) (401 ) (576 ) 2,167 Net unrealized investment gains (losses) with OTTI losses 1 (1 ) — — — Balances at September 30, 2019 $ 3,970 $ (826 ) $ (401 ) $ (576 ) $ 2,167 Balances at July 1, 2018 $ (245 ) $ 11 $ (110 ) $ (27 ) $ (371 ) Net investment gains (losses) arising during the period (554 ) — — — (554 ) Reclassification adjustment: Included in Net income (loss) 10 — — — 10 Excluded from Net income (loss) (1) — — — — — Impact of net unrealized investment gains (losses) on: DAC — 72 — — 72 Deferred income taxes — — — 112 112 Policyholders’ liabilities — — (62 ) — (62 ) Net unrealized investment gains (losses) excluding OTTI losses (789 ) 83 (172 ) 85 (793 ) Net unrealized investment gains (losses) with OTTI losses 1 — — — 1 Balances at September 30, 2018 $ (788 ) $ 83 $ (172 ) $ 85 $ (792 ) ______________ (1) Represents “transfers out” related to the portion of OTTI losses during the period that were not recognized in Net income (loss) for securities with no prior OTTI losses. Net DAC Policyholders’ Deferred AOCI Gain (in millions) Balances at January 1, 2019 $ (577 ) $ 39 $ (55 ) $ 125 $ (468 ) Net investment gains (losses) arising during the period 4,754 — — — 4,754 Reclassification adjustment: — Included in Net income (loss) (208 ) — — — (208 ) Excluded from Net income (loss) (1) — — — — — Impact of net unrealized investment gains (losses) on: DAC — (864 ) — — (864 ) Deferred income taxes — — — (701 ) (701 ) Policyholders’ liabilities — — (346 ) — (346 ) Net unrealized investment gains (losses) excluding OTTI losses 3,969 (825 ) (401 ) (576 ) 2,167 Net unrealized investment gains (losses) with OTTI losses 1 (1 ) — — — Balances at September 30, 2019 $ 3,970 $ (826 ) $ (401 ) $ (576 ) $ 2,167 Balances at January 1, 2018 $ 1,526 $ (315 ) $ (232 ) $ (300 ) $ 679 Net investment gains (losses) arising during the period (2,240 ) — — — (2,240 ) Reclassification adjustment: Included in Net income (loss) (75 ) — — — (75 ) Excluded from Net income (loss) (1) — — — — — Impact of net unrealized investment gains (losses) on: DAC — 398 — — 398 Deferred income taxes — — — 385 385 Policyholders’ liabilities — — 60 — 60 Net unrealized investment gains (losses) excluding OTTI losses (789 ) 83 (172 ) 85 (793 ) Net unrealized investment gains (losses) with OTTI losses 1 — — — 1 Balances at September 30, 2018 $ (788 ) $ 83 $ (172 ) $ 85 $ (792 ) ______________ (1) Represents “transfers out” related to the portion of OTTI losses during the period that were not recognized in Net income (loss) for securities with no prior OTTI losses. The following tables disclose the fair values and gross unrealized losses of the 339 securities at September 30, 2019 and the 1,471 securities at December 31, 2018 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: Continuous Gross Unrealized Losses for Available-for-Sale Fixed Maturities Less Than 12 Months 12 Months or Longer Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (in millions) September 30, 2019: Fixed Maturities: Corporate $ 2,489 $ 24 $ 526 $ 25 $ 3,015 $ 49 U.S. Treasury, government and agency 1,568 55 — — 1,568 55 States and political subdivisions 33 1 — — 33 1 Foreign governments — — 47 6 47 6 Asset-backed 251 1 143 1 394 2 Redeemable preferred stock — — 50 3 50 3 Total at September 30, 2019 $ 4,341 $ 81 $ 766 $ 35 $ 5,107 $ 116 December 31, 2018: Fixed Maturities: Corporate $ 8,369 $ 306 $ 6,161 $ 393 $ 14,530 $ 699 U.S. Treasury, government and agency 2,636 68 3,154 386 5,790 454 States and political subdivisions — — 19 1 19 1 Foreign governments 109 3 76 10 185 13 Residential mortgage-backed — — 13 — 13 — Asset-backed 558 11 6 — 564 11 Redeemable preferred stock 160 12 31 5 191 17 Total at December 31, 2018 $ 11,832 $ 400 $ 9,460 $ 795 $ 21,292 $ 1,195 The Company’s investments in fixed maturities do not include concentrations of credit risk of any single issuer greater than 10% of the consolidated equity of the Company, 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 0.6% of total corporate securities. The largest exposures to a single issuer of corporate securities held at September 30, 2019 and December 31, 2018 were $278 million and $210 million , respectively, representing 2.1% and 1.7% of the consolidated equity of the Company 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 investment grade), 4 or 5 (below investment grade) or 6 (in or near default). At September 30, 2019 and December 31, 2018 , respectively, approximately $1.4 billion and $1.2 billion , or 2.4% and 2.9% , of the $57.5 billion and $42.5 billion aggregate amortized cost of fixed maturities held by the Company were considered to be other than investment grade. These securities had unrealized losses of $21 million and $30 million at September 30, 2019 and December 31, 2018 , respectively. At September 30, 2019 and December 31, 2018 , respectively, the $35 million and $795 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 September 30, 2019 or 2018 . At September 30, 2019 and December 31, 2018 , the Company did not intend to sell the securities nor will it likely be required to dispose of the securities before the anticipated recovery of their remaining amortized cost basis. At September 30, 2019 and December 31, 2018 , the fair value of the Company’s trading account securities was $8.4 billion and $15.2 billion , respectively. At September 30, 2019 and December 31, 2018 , trading account securities included the General Account’s investment in Separate Accounts which had carrying values of $54 million and $48 million , respectively. 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 (loss) from trading account securities during the three and nine months ended September 30, 2019 and 2018 : Net Investment Income (Loss) from Trading Account Securities Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 (in millions) Net investment gains (losses) recognized during the period on securities held at the end of the period $ 7 $ (36 ) $ 431 $ (231 ) Net investment gains (losses) recognized on securities sold during the period 13 (19 ) (10 ) (17 ) Net investment gains (losses) on trading securities arising during the period 20 (55 ) 421 (248 ) Interest and dividend income from trading securities 59 89 220 228 Net investment income (loss) from trading securities $ 79 $ 34 $ 641 $ (20 ) Mortgage Loans The payment terms of mortgage loans may from time to time be restructured or modified. At September 30, 2019 and December 31, 2018 , the carrying values of problem commercial mortgage loans on real estate that had been classified as non-accrual loans were $– and $19 million , respectively. Allowances for credit losses for commercial mortgage loans were $– and $7 million for the nine months ended September 30, 2019 and 2018 , respectively. There were no allowances for credit losses for agricultural mortgage loans for the nine months ended September 30, 2019 and 2018 . The following tables provide information relating to the loan-to-value and debt service coverage ratios for commercial and agricultural mortgage loans at September 30, 2019 and December 31, 2018 . The values used in these ratio calculations were developed as part of the periodic review of the commercial and agricultural mortgage loan portfolio, which includes an evaluation of the underlying collateral value. Mortgage Loans by Loan-to-Value and Debt Service Coverage Ratios Debt Service Coverage Ratio (1) Total Mortgage Loans 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 (in millions) September 30, 2019: Commercial Mortgage Loans: 0% - 50% $ 794 $ 39 $ 215 $ 24 $ — $ — $ 1,072 50% - 70% 4,296 1,041 1,255 769 208 — 7,569 70% - 90% 158 110 70 98 142 — 578 90% plus — — 46 — — — 46 Total Commercial Mortgage Loans $ 5,248 $ 1,190 $ 1,586 $ 891 $ 350 $ — $ 9,265 Debt Service Coverage Ratio (1) Total Mortgage Loans 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 (in millions) Agricultural Mortgage Loans: 0% - 50% $ 291 $ 108 $ 257 $ 568 $ 327 $ 45 $ 1,596 50% - 70% 106 81 240 403 263 32 1,125 70% - 90% — — — 19 — — 19 90% plus — — — — — — — Total Agricultural Mortgage Loans $ 397 $ 189 $ 497 $ 990 $ 590 $ 77 $ 2,740 Total Mortgage Loans: 0% - 50% $ 1,085 $ 147 $ 472 $ 592 $ 327 $ 45 $ 2,668 50% - 70% 4,402 1,122 1,495 1,172 471 32 8,694 70% - 90% 158 110 70 117 142 — 597 90% plus — — 46 — — — 46 Total Mortgage Loans $ 5,645 $ 1,379 $ 2,083 $ 1,881 $ 940 $ 77 $ 12,005 December 31, 2018: Commercial Mortgage Loans: 0% - 50% $ 780 $ 21 $ 247 $ 24 $ — $ — $ 1,072 50% - 70% 4,908 656 1,146 325 151 — 7,186 70% - 90% 260 — 117 370 98 — 845 90% plus — — — 27 — — 27 Total Commercial Mortgage Loans $ 5,948 $ 677 $ 1,510 $ 746 $ 249 $ — $ 9,130 Agricultural Mortgage Loans: 0% - 50% $ 282 $ 147 $ 267 $ 543 $ 321 $ 51 $ 1,611 50% - 70% 112 46 246 379 224 31 1,038 70% - 90% — — — 19 27 — 46 90% plus — — — — — — — Total Agricultural Mortgage Loans $ 394 $ 193 $ 513 $ 941 $ 572 $ 82 $ 2,695 Total Mortgage Loans: 0% - 50% $ 1,062 $ 168 $ 514 $ 567 $ 321 $ 51 $ 2,683 50% - 70% 5,020 702 1,392 704 375 31 8,224 70% - 90% 260 — 117 389 125 — 891 90% plus — — — 27 — — 27 Total Mortgage Loans $ 6,342 $ 870 $ 2,023 $ 1,687 $ 821 $ 82 $ 11,825 ______________ (1) The debt service coverage ratio is calculated using the most recently reported 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 most recent fair value estimate of the property. The fair value of the underlying commercial properties is updated annually. The following table provides information relating to the aging analysis of past due mortgage loans at September 30, 2019 and December 31, 2018 . Age Analysis of Past Due Mortgage Loans 30-59 Days 60-89 Days 90 Days or More Total Current Total Financing Receivables Recorded Investment 90 Days or More and Accruing (in millions) September 30, 2019: Commercial $ — $ — $ — $ — $ 9,265 $ 9,265 $ — Agricultural 25 5 75 105 2,635 2,740 75 Total Mortgage Loans $ 25 $ 5 $ 75 $ 105 $ 11,900 $ 12,005 $ 75 December 31, 2018: Commercial $ — $ — $ 27 $ 27 $ 9,103 $ 9,130 $ — Agricultural 18 8 42 68 2,627 2,695 40 Total Mortgage Loans $ 18 $ 8 $ 69 $ 95 $ 11,730 $ 11,825 $ 40 |
DERIVATIVES
DERIVATIVES | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES | DERIVATIVES The Company uses derivatives as part of its overall asset/liability risk management primarily to reduce exposures to equity market and interest rate risks. Derivative hedging strategies are designed to reduce these risks from an economic perspective and are all executed within the framework of a “Derivative Use Plan” approved by applicable states’ insurance law. 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 Company bought interest rate swaptions during the second quarter of 2019 to reduce the impact of unfavorable changes in interest rates. 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 its hedging strategy, the Company targets an 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. CTE98 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 GMxB features. The risk associated with the GMDB feature is that under-performance of the financial markets could result in GMDB benefits, in the event of death, being higher than what accumulated policyholders’ account balances would support. The risk associated with the GMIB feature is that under-performance of the financial markets could result in the present value of GMIB, 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 in place an economic hedge program using interest rate swaps and treasury futures to partially protect the overall profitability of future variable annuity sales against declining interest rates. Derivatives Utilized to Hedge Crediting Rate Exposure on SCS, SIO, MSO and IUL Products/Investment Options The Company hedges crediting rates in the 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, thereby substantially reducing any exposure to market-related earnings volatility. Derivatives Used to Hedge Equity Market Risks Associated with the General Account’s Seed Money Investments in Retail Mutual Funds The Company’s General Account seed money investments in retail mutual funds expose us to market risk, including equity market risk which is partially hedged through equity-index futures contracts to minimize such risk. 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 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). 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 U.S. dollar or euro-equivalent of the derivative’s 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. In June 2019, the Company terminated 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. The Company terminated $3.9 billion , in notional, of total return swaps reported in other invested assets in the Company’s balance sheet. The terminated total return swaps had a gain of $121 million . The tables below present quantitative disclosures about the Company’s derivative instruments, including those embedded in other contracts required to be accounted for as derivative instruments. Derivative Instruments by Category At September 30, 2019 Gains (Losses) Reported in Net Income (Loss) Nine Months Ended September 30, 2019 Fair Value Notional Amount Asset Derivatives Liability Derivatives (in millions) Freestanding Derivatives (1) (2): Equity contracts: Futures $ 6,686 $ — $ — $ (967 ) Swaps 9,561 81 56 (1,263 ) Options 49,081 3,946 1,513 1,241 Interest rate contracts: Swaps 25,781 1,196 382 2,844 Futures 15,934 — — 183 Swaptions 3,201 196 — 146 Credit contracts: Credit default swaps 1,232 19 — 13 Other freestanding contracts: Foreign currency contracts 1,114 5 5 (13 ) Margin — — — — Collateral — — 3,472 — Embedded Derivatives (2): GMIB reinsurance contracts — 2,853 — 882 GMxB derivative features liability (3) — — 9,363 (3,643 ) SCS, SIO, MSO and IUL indexed features (4) — — 2,178 (1,498 ) Total $ 112,590 $ 8,296 $ 16,969 $ (2,075 ) ______________ (1) Reported in Other invested assets in the consolidated balance sheets. (2) Reported in Net derivative gains (losses) in the consolidated statements of income (loss). (3) Reported in Future policy benefits and other policyholders’ liabilities in the consolidated balance sheets. (4) SCS, SIO, MSO and IUL indexed features are reported in Policyholders’ account balances in the consolidated balance sheets. At December 31, 2018 Gains (Losses) Reported in Net Income (Loss) Nine Months Ended September 30, 2018 Fair Value Notional Amount Asset Derivatives Liability Derivatives (in millions) Freestanding Derivatives (1) (2): Equity contracts: Futures $ 10,411 $ — $ — $ (489 ) Swaps 7,697 140 168 (482 ) Options 21,698 2,119 1,163 674 Interest rate contracts: Swaps 27,003 632 194 (1,012 ) Futures 11,448 — — 52 Credit contracts: Credit default swaps 1,282 17 — 4 Other freestanding contracts: Foreign currency contracts 2,097 27 14 59 Margin — 7 5 — Collateral — 3 1,564 — Embedded Derivatives (2): GMIB reinsurance contracts — 1,991 — (1,488 ) GMxB derivative features liability (3) — — 5,431 394 SCS, SIO, MSO and IUL indexed features (4) — — 687 (814 ) Total $ 81,636 $ 4,936 $ 9,226 $ (3,102 ) ______________ (1) Reported in Other invested assets in the consolidated balance sheets. (2) Reported in Net derivative gains (losses) in the consolidated statements of income (loss). (3) Reported in Future policy benefits and other policyholders’ liabilities in the consolidated balance sheets. (4) SCS, SIO, MSO and IUL indexed features are reported in Policyholders’ account balances in the consolidated balance sheets. Equity-Based and Treasury Futures Contracts Margin All outstanding equity-based and treasury futures contracts at September 30, 2019 are exchange-traded and net settled daily in cash. At September 30, 2019 , the Company had open exchange-traded futures positions on: (i) the S&P 500, Russell 2000, and Emerging Market indices, having initial margin requirements of $253 million , (ii) the 2-year, 5-year and 10-year U.S. Treasury Notes on U.S. Treasury bonds and ultra-long bonds, having initial margin requirements of $44 million and (iii) the Euro Stoxx, FTSE 100, Topix, ASX 200, and European, Australasia, and Far East (“EAFE”) indices as well as corresponding currency futures on the Euro/U.S. dollar, Pound/U.S. dollar, Australian dollar/U.S. dollar, and Yen/U.S. dollar, having initial margin requirements of $26 million . Collateral Arrangements The Company generally has executed a Credit Support Annex (“CSA”) under the International Swaps and Derivatives Association Master Agreement (“ISDA Master Agreement”) it maintains with each of its over-the-counter (“OTC”) derivative counterparties that requires both posting and accepting collateral either in the form of cash or high-quality securities, such as U.S. Treasury securities, U.S. government and government agency securities and investment grade corporate bonds. The Company nets the fair value of all derivative financial instruments with counterparties for which an ISDA Master Agreement and related CSA have been executed. At September 30, 2019 and December 31, 2018 , respectively, the Company held $3.5 billion and $1.6 billion in cash and securities collateral delivered by trade counterparties, representing the fair value of the related derivative agreements. The unrestricted cash collateral is reported in Other invested assets. The Company posted collateral of $– and $3 million at September 30, 2019 and December 31, 2018 , respectively, in the normal operation of its collateral arrangements. Securities Repurchase and Reverse Repurchase Transactions Securities repurchase and reverse repurchase transactions are conducted by the Company under a standardized securities industry master agreement, amended to suit the requirements of each respective counterparty. The Company’s securities repurchase and reverse repurchase agreements are accounted for as secured borrowing or lending arrangements, respectively and are reported in the consolidated balance sheets on a gross basis. At September 30, 2019 and December 31, 2018 , the balance outstanding under securities repurchase transactions was $– and $573 million , respectively. The Company utilized these repurchase and reverse repurchase agreements for asset liability and cash management purposes. For other instruments used for asset and liability management purposes, see Note 13 . The following table presents information about the Company’s offsetting of financial assets and liabilities and derivative instruments at September 30, 2019 . Offsetting of Financial Assets and Liabilities and Derivative Instruments At September 30, 2019 Gross Amount Recognized Gross Amount Offset in the Balance Sheets Net Amount Presented in the Balance Sheets (in millions) Assets: Total derivatives $ 5,445 $ 5,404 $ 41 Other financial instruments 1,712 — 1,712 Other invested assets $ 7,157 $ 5,404 $ 1,753 Liabilities: Total derivatives $ 5,429 $ 5,404 $ 25 Other financial liabilities 1,343 — 1,343 Other liabilities $ 6,772 $ 5,404 $ 1,368 The following table presents information about the Company’s gross collateral amounts that are not offset in the consolidated balance sheets at September 30, 2019 . Collateral Amounts Not Offset in the Consolidated Balance Sheets At September 30, 2019 Net Amount of Derivative Contracts Collateral (Received)/Held Financial Instruments Cash Net Amount (in millions) Assets: Total derivatives $ 3,488 $ 10 $ 3,437 $ 41 Other financial instruments 1,712 — — 1,712 Other invested assets $ 5,200 $ 10 $ 3,437 $ 1,753 Liabilities: Total derivatives $ 25 $ — $ — $ 25 Other financial liabilities 1,343 — — 1,343 Other liabilities $ 1,368 $ — $ — $ 1,368 The Company had no securities sold under agreements to repurchase at September 30, 2019 . The following table presents information about the Company’s offsetting financial assets and liabilities and derivative instruments at December 31, 2018 . Offsetting of Financial Assets and Liabilities and Derivative Instruments At December 31, 2018 Gross Amount Recognized Gross Amount Offset in the Balance Sheets Net Amount Presented in the Balance Sheets (in millions) Assets: Total derivatives $ 2,946 $ 2,912 $ 34 Other financial instruments 1,520 — 1,520 Other invested assets $ 4,466 $ 2,912 $ 1,554 Securities purchased under agreement to resell $ — $ — $ — Liabilities: Total derivatives $ 3,109 $ 2,912 $ 197 Other financial liabilities 1,263 — 1,263 Other liabilities $ 4,372 $ 2,912 $ 1,460 Securities sold under agreement to repurchase (1) $ 571 $ — $ 571 ______________ (1) Excludes expense of $2 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 December 31, 2018 . Collateral Amounts Not Offset in the Consolidated Balance Sheets At December 31, 2018 Net Amount of Derivative Contracts Collateral (Received)/Held Financial Instruments Cash (3) Net Amount (in millions) Assets: Total derivatives $ 1,397 $ — $ (1,363 ) $ 34 Other financial instruments 1,520 — — 1,520 Other invested assets $ 2,917 $ — $ (1,363 ) $ 1,554 Securities purchased under agreement to resell $ — $ — $ — $ — Liabilities: Total derivatives $ 197 $ — $ — $ 197 Other financial liabilities 1,263 — — 1,263 Other liabilities $ 1,460 $ — $ — $ 1,460 Securities sold under agreement to repurchase (1) (2) (3) $ 571 $ (588 ) $ — $ (17 ) ______________ (1) Excludes expense of $2 million in Securities sold under agreement to repurchase. (2) U.S. Treasury and agency securities are in Fixed maturities available-for-sale on the consolidated balance sheets. (3) Cash is included in Cash and cash equivalents on consolidated balance sheets. The following table presents information about repurchase agreements accounted for as secured borrowings in the consolidated balance sheets at December 31, 2018 . Repurchase Agreement Accounted for as Secured Borrowings At December 31, 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 $ — $ 571 $ — $ — $ 571 Total $ — $ 571 $ — $ — $ 571 ______________ (1) Excludes expense of $2 million in Securities sold under agreement to repurchase on the consolidated balance sheets. |
CLOSED BLOCK
CLOSED BLOCK | 9 Months Ended |
Sep. 30, 2019 | |
Closed Block Disclosure [Abstract] | |
Closed Block | CLOSED BLOCK Summarized financial information for the Company’s Closed Block is as follows: September 30, 2019 December 31, 2018 (in millions) Closed Block Liabilities: Future policy benefits, policyholders’ account balances and other $ 6,558 $ 6,709 Policyholder dividend obligation 5 — Other liabilities 61 47 Total Closed Block liabilities 6,624 6,756 Assets Designated to the Closed Block: Fixed maturities, available-for-sale, at fair value (amortized cost of $3,648 and $3,680) 3,869 3,672 Mortgage loans on real estate, net of valuation allowance of $0 and $0 1,800 1,824 Policy loans 716 736 Cash and other invested assets 10 76 Other assets 167 179 Total assets designated to the Closed Block 6,562 6,487 Excess of Closed Block liabilities over assets designated to the Closed Block 62 269 Amounts included in accumulated other comprehensive income (loss): Net unrealized investment gains (losses), net of policyholders' dividend obligation $5 and $0 219 8 Maximum future earnings to be recognized from Closed Block assets and liabilities $ 281 $ 277 The Company’s Closed Block revenues and expenses are as follows: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 (in millions) Revenues: Premiums and other income $ 42 $ 44 $ 136 $ 144 Net investment income (loss) 69 72 208 218 Investment gains (losses), net — — (1 ) 1 Total revenues 111 116 343 363 Benefits and Other Deductions: Policyholders’ benefits and dividends 108 123 343 372 Other operating costs and expenses — 1 1 3 Total benefits and other deductions 108 124 344 375 Net income (loss) before income taxes 3 (8 ) (1 ) (12 ) Income tax (expense) benefit — 2 (2 ) 2 Net income (loss) $ 3 $ (6 ) $ (3 ) $ (10 ) |
INSURANCE LIABILITIES
INSURANCE LIABILITIES | 9 Months Ended |
Sep. 30, 2019 | |
Insurance [Abstract] | |
Insurance Liabilities | INSURANCE LIABILITIES 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. Liabilities for Variable Annuity Contracts with GMDB and GMIB Features without No-Lapse Guarantee Rider (“NLG”) Feature The change in the liabilities for variable annuity contracts with GMDB and GMIB features and no NLG feature are summarized in the tables below. The amounts for the direct contracts (before reinsurance ceded) are reflected in the consolidated balance sheets in Future policy benefits and other policyholders’ liabilities. The amounts for the ceded contracts are reflected in the consolidated balance sheets in Amounts due from reinsurers. Change in Liability for Variable Annuity Contracts with GMDB Features and No NLG Feature Three and Nine Months Ended September 30, 2019 and 2018 Three Months Ended September 30, 2019 2018 Direct Ceded Direct Ceded (in millions) Beginning balance $ 4,710 $ (100 ) $ 4,124 $ (97 ) Paid guarantee benefits (102 ) 2 (91 ) 3 Other changes in reserve 159 (3 ) 485 (9 ) Ending balance $ 4,767 $ (101 ) $ 4,518 $ (103 ) Nine Months Ended September 30, 2019 2018 Direct Ceded Direct Ceded (in millions) Beginning balance $ 4,654 $ (107 ) $ 4,054 $ (2,030 ) Paid guarantee benefits (328 ) 11 (291 ) 67 Other changes in reserve 441 (5 ) 755 1,860 Ending balance $ 4,767 $ (101 ) $ 4,518 $ (103 ) Change in Liability for Variable Annuity Contracts with GMIB Features and No NLG Feature Three and Nine Months Ended September 30, 2019 and 2018 Three Months Ended September 30, 2019 2018 Direct Ceded Direct Ceded (in millions) Beginning balance $ 3,759 $ (2,196 ) $ 4,701 $ (1,825 ) Paid guarantee benefits (70 ) 20 (43 ) 1 Other changes in reserve 992 (677 ) (1,053 ) 253 Ending balance $ 4,681 $ (2,853 ) $ 3,605 $ (1,571 ) Nine Months Ended September 30, 2019 2018 Direct Ceded Direct Ceded (in millions) Beginning balance $ 3,741 $ (1,991 ) $ 4,754 $ (10,488 ) Paid guarantee benefits (182 ) 55 (108 ) 49 Other changes in reserve 1,122 (917 ) (1,041 ) 8,868 Ending balance $ 4,681 $ (2,853 ) $ 3,605 $ (1,571 ) Liabilities for Embedded and Freestanding Insurance Related Derivatives The liability for the GMxB derivative features liability, the liability for SCS, SIO, MSO and IUL indexed features and the asset and liability for the GMIB reinsurance contracts are considered embedded or freestanding insurance derivatives and are reported at fair value. For the fair value of the assets and liabilities associated with these embedded or freestanding insurance derivatives, see Note 7 . Account Values and Net Amount at Risk Account Values and Net Amount at Risk (“NAR”) for direct variable annuity contracts in-force with GMDB and GMIB features as of September 30, 2019 are presented in the following tables by guarantee type. For contracts with the GMDB feature, the NAR in the event of death is the amount by which the GMDB feature exceeds the related Account Values. For contracts with the GMIB feature, the NAR in the event of annuitization is the amount by which the present value of the GMIB benefits exceed the 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 features may also offer GMIB guarantees in the same contract, the GMDB and GMIB amounts listed are not mutually exclusive: Direct Variable Annuity Contracts with GMDB and GMIB Features at September 30, 2019 Guarantee Type Return of Premium Ratchet Roll-Up Combo Total (in millions, except age and interest rate) Variable annuity contracts with GMDB features Account Values invested in: General Account $ 14,483 $ 94 $ 58 $ 181 $ 14,816 Separate Accounts 46,286 8,937 3,071 32,067 90,361 Total Account Values $ 60,769 $ 9,031 $ 3,129 $ 32,248 $ 105,177 Net amount at risk, gross $ 123 $ 80 $ 1,980 $ 18,846 $ 21,029 Net amount at risk, net of amounts reinsured $ 123 $ 76 $ 1,388 $ 18,846 $ 20,433 Average attained age of policyholders (in years) 51.2 67.4 74.1 69.2 55.1 Percentage of policyholders over age 70 10.5 % 44.9 % 67.5 % 49.9 % 19.3 % Range of contractually specified interest rates N/A N/A 3% - 6% 3% - 6.5% 3% - 6.5% Variable annuity contracts with GMIB features Account Values invested in: General Account $ — $ — $ 20 $ 233 $ 253 Separate Accounts — — 22,484 34,718 57,202 Total Account Values $ — $ — $ 22,504 $ 34,951 $ 57,455 Net amount at risk, gross $ — $ — $ 981 $ 10,696 $ 11,677 Net amount at risk, net of amounts reinsured $ — $ — $ 309 $ 9,678 $ 9,987 Average attained age of policyholders (in years) N/A N/A 68.7 69.3 69.2 Weighted-average number of years remaining until annuitization N/A N/A 1.7 0.4 0.5 Range of contractually specified interest rates N/A N/A 3% - 6% 3% - 6.5% 3% - 6.5% For more information about the reinsurance programs of the Company’s GMDB and GMIB exposure, see “Reinsurance Agreements” in Note 10 of the Notes to the Consolidated Financial Statements included in the Annual Report on Form 10-K for the year ended December 31, 2018. Separate Accounts Investments by Investment Category Underlying Variable Annuity Contracts with GMDB and GMIB Features The total account values of variable annuity contracts with GMDB and GMIB features include amounts allocated to the guaranteed interest option, which is part of the General Account and variable investment options that invest through Separate Accounts in variable insurance trusts. The following table presents the aggregate fair value of assets, by major investment category, held by Separate Accounts that support variable annuity contracts with GMDB and GMIB features. The investment performance of the assets impacts the related account values and, consequently, the NAR associated with the GMDB and GMIB benefits and guarantees. Because the Company’s variable annuity contracts offer both GMDB and GMIB features, GMDB and GMIB amounts are not mutually exclusive. Investment in Variable Insurance Trust Mutual Funds September 30, 2019 December 31, 2018 Mutual Fund Type GMDB GMIB GMDB GMIB (in millions) Equity $ 39,866 $ 17,056 $ 35,541 $ 15,759 Fixed income 5,277 2,748 5,173 2,812 Balanced 44,347 37,132 41,588 33,974 Other 871 266 852 290 Total $ 90,361 $ 57,202 $ 83,154 $ 52,835 Hedging Programs for GMDB, GMIB, GIB and Other Features The Company has a program intended to hedge certain risks associated first with the GMDB feature and 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. 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. 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 change in the fair value of the NLG feature reflected in the General Account in Future policy benefits and other policyholders’ liabilities in the consolidated balance sheets is summarized in the table below. Three Months Ended September 30, 2019 2018 Direct Liability Reinsurance Ceded Net Direct Liability Reinsurance Ceded Net (in millions) Beginning balance $ 819 $ (755 ) $ 64 $ 716 $ (689 ) $ 27 Paid guaranteed benefits (6 ) — (6 ) (4 ) — (4 ) Other changes in reserves 52 (37 ) 15 43 (28 ) 15 Ending balance $ 865 $ (792 ) $ 73 $ 755 $ (717 ) $ 38 Nine Months Ended September 30, 2019 2018 Direct Liability Reinsurance Ceded Net Direct Liability Reinsurance Ceded Net (in millions) Beginning balance $ 787 $ (733 ) $ 54 $ 692 $ (664 ) $ 28 Paid guaranteed benefits (16 ) — (16 ) (13 ) — (13 ) Other changes in reserves 94 (59 ) 35 76 (53 ) 23 Ending balance $ 865 $ (792 ) $ 73 $ 755 $ (717 ) $ 38 |
FAIR VALUE DISCLOSURES
FAIR VALUE DISCLOSURES | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures | FAIR VALUE DISCLOSURES The accounting guidance establishes 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 fair value for those 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 September 30, 2019 and December 31, 2018 , 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 impairment or other event occurs. When such fair value measurements are recorded, they must be classified and disclosed within the fair value hierarchy. Fair Value Measurements at September 30, 2019 Level 1 Level 2 Level 3 Total (in millions) Assets: Investments: Fixed maturities, available-for-sale: Corporate (1) $ — $ 42,153 $ 1,208 $ 43,361 U.S. Treasury, government and agency — 15,724 — 15,724 States and political subdivisions — 606 39 645 Foreign governments — 517 — 517 Residential mortgage-backed (2) — 182 — 182 Asset-backed (3) — 70 532 602 Redeemable preferred stock 141 273 — 414 Total fixed maturities, available-for-sale 141 59,525 1,779 61,445 Other equity investments 13 — — 13 Trading securities 314 8,130 — 8,444 Other invested assets: Short-term investments — 437 — 437 Assets of consolidated VIEs/VOEs — — 16 16 Swaps — 839 — 839 Credit default swaps — 19 — 19 Options — 2,433 — 2,433 Swaptions — 196 — 196 Total other invested assets — 3,924 16 3,940 Cash equivalents 1,379 — — 1,379 GMIB reinsurance contract asset — — 2,853 2,853 Separate Accounts assets 115,405 2,927 358 118,690 Total Assets $ 117,252 $ 74,506 $ 5,006 $ 196,764 Liabilities: GMxB derivative features’ liability $ — $ — $ 9,363 $ 9,363 SCS, SIO, MSO and IUL indexed features’ liability — 2,178 — 2,178 Total Liabilities $ — $ 2,178 $ 9,363 $ 11,541 ______________ (1) Corporate fixed maturities includes both public and private issues. (2) Includes publicly traded agency pass-through securities and collateralized obligations. (3) Includes credit-tranched securities collateralized by sub-prime mortgages and other asset types and credit tenant loans. Fair Value Measurements at December 31, 2018 Level 1 Level 2 Level 3 Total (in millions) Assets: Investments: Fixed maturities, available-for-sale: Corporate (1) $ — $ 25,202 $ 1,174 $ 26,376 U.S. Treasury, government and agency — 13,335 — 13,335 States and political subdivisions — 416 38 454 Foreign governments — 519 — 519 Residential mortgage-backed (2) — 202 — 202 Asset-backed (3) — 71 519 590 Redeemable preferred stock 163 276 — 439 Total fixed maturities, available-for-sale 163 40,021 1,731 41,915 Other equity investments 12 — — 12 Trading securities 218 14,919 29 15,166 Other invested assets: Short-term investments — 412 — 412 Assets of consolidated VIEs/VOEs — — 19 19 Swaps — 423 — 423 Credit default swaps — 17 — 17 Options — 956 — 956 Total other invested assets — 1,808 19 1,827 Cash equivalents 2,160 — — 2,160 GMIB reinsurance contracts asset — — 1,991 1,991 Separate Accounts assets 105,159 2,733 374 108,266 Total Assets $ 107,712 $ 59,481 $ 4,144 $ 171,337 Liabilities: GMxB derivative features’ liability $ — $ — $ 5,431 $ 5,431 SCS, SIO, MSO and IUL indexed features’ liability — 687 — 687 Total Liabilities $ — $ 687 $ 5,431 $ 6,118 ______________ (1) Corporate fixed maturities includes both public and private issues. (2) Includes publicly traded agency pass-through securities and collateralized obligations. (3) Includes credit-tranched securities collateralized by sub-prime mortgages and other asset types and credit tenant loans. The fair values of the Company’s public fixed maturities 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 maturities 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. 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. The net fair value of the Company’s freestanding derivative positions as disclosed in Note 4 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. Investments classified as Level 1 primarily include redeemable preferred stock, trading securities, cash equivalents and Separate Accounts assets. Fair value measurements classified as Level 1 include exchange-traded prices of fixed maturities, equity securities and derivative contracts, and net asset values for transacting subscriptions and redemptions of mutual fund shares held by Separate Accounts. Cash equivalents classified as Level 1 include money market accounts, overnight commercial paper and highly liquid debt instruments purchased with an original maturity of three months or less and are carried at cost as a proxy for fair value measurement due to their short-term nature. Investments classified as Level 2 are 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. 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. The Company’s 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 products, IUL and 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 one, three, five or six 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. The Company’s investments classified as Level 3 primarily include corporate debt securities, such as private fixed maturities and asset-backed securities. 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 are fixed maturities with indicative pricing obtained from brokers that otherwise could not be corroborated to market observable data. 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 assets 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 Accounts 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 for non-performance risk is made to the fair values of the GMIB reinsurance contract asset and liabilities and GMIBNLG feature to reflect the claims-paying ratings of counterparties and 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 $237 million and $184 million at September 30, 2019 and December 31, 2018 , 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 consolidated VIEs/VOEs hold investments that are classified as Level 3, and primarily consist of corporate bonds that are vendor priced with no ratings available, bank loans, non-agency collateralized mortgage obligations and asset-backed securities. During the nine months ended September 30, 2019 , AFS fixed maturities with fair values of $104 million were transferred out of Level 3 and into Level 2 principally due to the availability of trading activity and/or market observable inputs to measure and validate their fair values. In addition, AFS fixed maturities with fair value of $14 million were transferred from Level 2 into the Level 3 classification. These transfers in the aggregate represent approximately 0.9% of total equity at September 30, 2019 . During the nine months ended September 30, 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 and/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 September 30, 2018 . The tables below present reconciliations for all Level 3 assets and liabilities for the three and nine months ended September 30, 2019 and 2018 . Level 3 Instruments - Fair Value Measurements Corporate State and Political Subdivisions Asset- backed (in millions) Balance, July 1, 2019 $ 1,290 $ 39 $ 534 Total gains (losses), realized and unrealized, included in: Net income (loss) as: Net investment income (loss) — — — Investment gains (losses), net — — — Subtotal — — — Other comprehensive income (loss) (7 ) 1 — Purchases (2 ) — 71 Sales (42 ) (1 ) (73 ) Transfers into Level 3 (1) — — — Transfers out of Level 3 (1) (31 ) — — Balance, September 30, 2019 $ 1,208 $ 39 $ 532 Balance, July 1, 2018 $ 1,152 $ 38 $ 538 Total gains (losses), realized and unrealized, included in: Net income (loss) as: Net investment income (loss) 3 — (1 ) Investment gains (losses), net (4 ) — — Subtotal (1 ) — (1 ) Other comprehensive income (loss) (1 ) — 1 Purchases 36 — — Sales (52 ) — (1 ) Transfers into Level 3 (1) — — — Transfers out of Level 3 (1) — — — Balance, September 30, 2018 $ 1,134 $ 38 $ 537 ______________ (1) Transfers into/out of the Level 3 classification are reflected at beginning-of-period fair values. Corporate State and Political Subdivisions Asset- backed (in millions) Balance, January 1, 2019 $ 1,174 $ 38 $ 519 Total gains (losses), realized and unrealized, included in: Net income (loss) as: Net investment income (loss) 3 — — Investment gains (losses), net — — — Subtotal 3 — — Other comprehensive income (loss) 3 3 5 Purchases 219 — 81 Sales (101 ) (2 ) (73 ) Transfers into Level 3 (1) 14 — — Transfers out of Level 3 (1) (104 ) — — Balance, September 30, 2019 $ 1,208 $ 39 $ 532 Corporate State and Political Subdivisions Asset- backed (in millions) Balance, January 1, 2018 $ 1,139 $ 40 $ 8 Total gains (losses), realized and unrealized, included in: Net income (loss) as: Net investment income (loss) 8 — (1 ) Investment gains (losses), net (4 ) — — Subtotal 4 — (1 ) Other comprehensive income (loss) (15 ) (1 ) — Purchases 236 — 533 Sales (267 ) (1 ) (3 ) Transfers into Level 3 (1) 65 — — Transfers out of Level 3 (1) (28 ) — — Balance, September 30, 2018 $ 1,134 $ 38 $ 537 ______________ (1) Transfers into/out of the Level 3 classification are reflected at beginning-of-period fair values. Other Equity Investments GMIB Reinsurance Contract Asset Separate Accounts Assets GMxB Derivative Features Liability (in millions) Balance, July 1, 2019 $ 16 $ 2,196 $ 389 $ (6,749 ) Total gains (losses), realized and unrealized, included in: Net income (loss) as: Investment gains (losses), net — — (14 ) — Net derivative gains (losses), excluding non-performance risk — 694 — (2,682 ) Non-performance risk (1) — (29 ) — 154 Subtotal — 665 (14 ) (2,528 ) Other comprehensive income (loss) — — — — Purchases (2) — 12 (4 ) (99 ) Sales (3) — (20 ) (1 ) 13 Settlements — — (1 ) — Activity related to consolidated VIEs/VOEs — — — — Transfers into Level 3 (4) — — — — Transfers out of Level 3 (4) — — (11 ) — Balance, September 30, 2019 $ 16 $ 2,853 $ 358 $ (9,363 ) Other Equity Investments GMIB Reinsurance Contract Asset Separate Accounts Assets GMxB Derivative Features Liability (in millions) Balance, July 1, 2018 $ 23 $ 1,825 $ 361 $ (3,534 ) Total gains (losses), realized and unrealized, included in: Net income (loss) as: Net investment income (loss) — — — — Investment gains (losses), net — — 6 — Net derivative gains (losses), excluding non-performance risk — (311 ) — (485 ) Non-performance risk (1) — 56 — (49 ) Subtotal — (255 ) 6 (534 ) Other comprehensive income (loss) — — — — Purchases (2) — 12 1 (96 ) Sales (3) — (11 ) — 7 Settlements — — (1 ) — Activity related to consolidated VIEs/VOEs (1 ) — — — Transfers into Level 3 (4) — — — — Transfers out of Level 3 (4) — — — — Balance, September 30, 2018 $ 22 $ 1,571 $ 367 $ (4,157 ) ______________ (1) The Company’s non-performance risk is recorded through Net derivative gains (losses). (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 the GMxB derivative features liability represents benefits paid. (4) Transfers into/out of the Level 3 classification are reflected at beginning-of-period fair values. Other Equity Investments GMIB Reinsurance Contract Asset Separate Accounts Assets GMxB Derivative Features Liability (in millions) Balance, January 1, 2019 $ 48 $ 1,991 $ 374 $ (5,431 ) Total gains (losses), realized and unrealized, included in: Net income (loss) as: Investment gains (losses), net — — (2 ) — Net derivative gains (losses), excluding non-performance risk — 859 — (3,338 ) Non-performance risk (1) — 23 — (306 ) Subtotal — 882 (2 ) (3,643 ) Other comprehensive income (loss) — — — — Purchases (2) — 35 3 (309 ) Sales (3) — (55 ) (1 ) 20 Settlements — — (4 ) — Activity related to consolidated VIEs/VOEs (3 ) — — — Transfers into Level 3 (4) — — — — Transfers out of Level 3 (4) (29 ) — (12 ) — Balance, September 30, 2019 $ 16 $ 2,853 $ 358 $ (9,363 ) Balance, January 1, 2018 $ 25 $ 10,488 $ 349 $ (4,256 ) Total gains (losses), realized and unrealized, included in: Net income (loss) as: Net investment income (loss) — — — — Investment gains (losses), net — — 19 — Net derivative gains (losses), excluding non-performance risk — (1,487 ) — 322 Non-performance risk (1) — (1 ) — 72 Subtotal — (1,488 ) 19 394 Other comprehensive income (loss) — — — — Purchases (2) — 83 4 (305 ) Sales (3) — (49 ) (1 ) 10 Settlements — (7,463 ) (4 ) — Activity related to consolidated VIEs/VOEs (3 ) — — — Transfers into Level 3 (4) 5 — — — Transfers out of Level 3 (4) (5 ) — — — Balance, September 30, 2018 $ 22 $ 1,571 $ 367 $ (4,157 ) ______________ (1) The Company’s non-performance risk is recorded through Net derivative gains (losses). (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 the GMxB derivative features liability represents benefits paid. (4) Transfers into/out of the Level 3 classification are reflected at beginning-of-period fair values. The table below details changes in unrealized gains (losses) for the nine months ended September 30, 2019 and 2018 by category for Level 3 assets and liabilities still held at September 30, 2019 and 2018 . Change in Unrealized Gains (Losses) for Level 3 Instruments Net Income (Loss) Investment Gains (Losses), Net Net Derivative Gains (Losses) OCI (in millions) Held at September 30, 2019: Change in unrealized gains (losses): Fixed maturities, available-for-sale: Corporate $ — $ — $ 3 State and political subdivisions — — 3 Asset-backed — — 4 Subtotal — — 10 GMIB reinsurance contracts — 882 — Separate Accounts assets (1) (14 ) — — GMxB derivative features liability — (3,643 ) — Total $ (14 ) $ (2,761 ) $ 10 Held at September 30, 2018: Change in unrealized gains (losses): Fixed maturities, available-for-sale: Corporate $ — $ — $ (13 ) State and political subdivisions — — (1 ) Asset-backed — — — Subtotal — — (14 ) GMIB reinsurance contracts — (1,488 ) — Separate Accounts assets (1) 19 — — GMxB derivative features liability — 394 — Total $ 19 $ (1,094 ) $ (14 ) ______________ (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 at September 30, 2019 and December 31, 2018 . Quantitative Information about Level 3 Fair Value Measurements at September 30, 2019 Fair Valuation Significant Range Weighted Average (in millions) Assets: Investments: Fixed maturities, available-for-sale: Corporate $ 60 Matrix pricing model Spread over benchmark 15 - 580 bps 181 bps 996 Market comparable companies EBITDA multiples 3.9x - 63.3x 14.9x Separate Accounts assets 350 Third party appraisal Capitalization rate 4.4% 1 Discounted cash flow Spread over U.S. Treasury curve 253 bps Fair Valuation Significant Range Weighted Average (in millions) GMIB reinsurance contract asset 2,853 Discounted cash flow Lapse rates 0.8% - 10% Liabilities: GMIBNLG 9,206 Discounted cash flow Non-performance risk Lapse rates Withdrawal rates Annuitization rates Mortality rates (1): Ages 0 - 40 Ages 41 - 60 Ages 60 - 115 159 bps GWBL/GMWB 125 Discounted cash flow Lapse rates 0.8% - 10.0% GIB 25 Discounted cash flow Lapse rates 1.2% - 19.9% GMAB 7 Discounted cash flow Lapse rates 1.0% - 10.0% ______________ (1) Mortality rates vary by age and demographic characteristic such as gender. Mortality rate assumptions are based on a combination of company and industry experience. A mortality improvement assumption is also applied. For any given contract, mortality rates vary throughout the period over which cash flows are projected for purposes of valuating the embedded derivatives. Quantitative Information about Level 3 Fair Value Measurements at December 31, 2018 Fair Valuation Significant Range Weighted Average (in millions) Assets: Investments: Fixed maturities, available-for-sale: Corporate $ 93 Matrix pricing model Spread over benchmark 15 - 580 bps 104 bps 881 Market comparable companies EBITDA multiples 4.1x - 37.8x 12.1x Separate Accounts assets 352 Third party appraisal Capitalization rate 4.4% 1 Discounted cash flow Spread over U.S. Treasury curve 248 bps GMIB reinsurance contract asset 1,991 Discounted cash flow Lapse rates Mortality rates (1): Ages 0 - 40 Ages 41 - 60 Ages 60 - 115 1.0% - 6.27% Fair Valuation Significant Range Weighted Average (in millions) Liabilities: GMIBNLG 5,341 Discounted cash flow Non-performance risk Annuitization rates Mortality rates (1): Ages 0 - 40 Ages 41 - 60 Ages 60 - 115 189 bps GWBL/GMWB 130 Discounted cash flow Lapse rates 0.5% - 5.7% GIB (48 ) Discounted cash flow Lapse rates 0.5% - 5.7% GMAB 7 Discounted cash flow Lapse rates 1.0% - 5.7% ______________ (1) Mortality rates vary by age and demographic characteristic such as gender. Mortality rate assumptions are based on a combination of company and industry experience. A mortality improvement assumption is also applied. For any given contract, mortality rates vary throughout the period over which cash flows are projected for purposes of valuating the embedded derivatives. Excluded from the tables above at September 30, 2019 and December 31, 2018 , respectively, are approximately $746 million and $826 million of Level 3 fair value measurements of investments for which the underlying quantitative inputs are not developed by the Company and are not readily available. These investments primarily consist of certain privately placed debt securities with limited trading activity, including residential mortgage- and asset-backed instruments, and their fair values generally reflect unadjusted prices obtained from independent valuation service providers and indicative, non-binding quotes obtained from third-party broker-dealers recognized as market participants. Significant increases or decreases in the fair value amounts received from these pricing sources may result in the Company’s reporting significantly higher or lower fair value measurements for these Level 3 investments. The fair value of private placement securities is determined by application of a matrix pricing model or a market comparable company value technique. The significant unobservable input to the matrix pricing model valuation technique is the spread over the industry-specific benchmark yield curve. Generally, an increase or decrease in spreads would lead to directionally inverse movement in the fair value measurements of these securities. The significant unobservable input to the market comparable company valuation technique is the discount rate. Generally, a significant increase (decrease) in the discount rate would result in significantly lower (higher) fair value measurements of these securities. Residential mortgage-backed securities classified as Level 3 primarily consist of non-agency paper with low trading activity. Included in the tables above at September 30, 2019 and December 31, 2018 , there were no Level 3 securities that were determined by application of a matrix pricing model and for which the spread over the U.S. Treasury curve is the most significant unobservable input to the pricing result. Generally, a change in spreads would lead to directionally inverse movement in the fair value measurements of these securities. Asset-backed securities classified as Level 3 primarily consist of non-agency mortgage loan trust certificates, including subprime and Alt-A paper, credit tenant loans, and equipment financings. Included in the tables above at September 30, 2019 and December 31, 2018 , there were no securities that were determined by the application of matrix-pricing for which the spread over the U.S. Treasury curve is the most significant unobservable input to the pricing result. Significant increases (decreases) in spreads would have resulted in significantly lower (higher) fair value measurements. Separate Accounts assets classified as Level 3 in the table at September 30, 2019 and December 31, 2018 , primarily consist of a private real estate fund and mortgage loans. A third-party appraisal valuation technique is used to measure the fair value of the private real estate investment fund, including consideration of observable replacement cost and sales comparisons for the underlying commercial properties, as well as the results from applying a discounted cash flow approach. Significant increase |
LEASES
LEASES | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
LEASES | LEASES The Company does not record leases with an initial term of 12 months or less in its consolidated balance sheets, but instead recognizes lease expense for these leases on a straight-line basis over the lease term. For leases with a term greater than one year, the Company records in its consolidated balance sheets at the time of lease commencement or modification a right of use (“RoU”) operating lease asset and a lease liability, initially measured at the present value of the lease payments. Lease costs are recognized in the consolidated statements of income over the lease term on a straight-line basis. RoU operating lease assets represent the Company’s right to use an underlying asset for the lease term and RoU operating lease liabilities represent the Company’s obligation to make lease payments arising from the lease. The Company's operating leases primarily consist of real estate leases for office space. The Company also has operating leases for various types of office furniture and equipment. For certain equipment leases, the Company applies a portfolio approach to effectively account for the RoU operating lease assets and liabilities. For certain lease agreements entered into after the adoption of ASC 842 or for lease agreements for which the lease term or classification was reassessed after the occurrence of a change in the lease terms or a modification of the lease that did not result in a separate contract , the Company elected to combine the lease and related non-lease components for its operating leases; however, the non-lease components associated with the Company’s operating leases are primarily variable in nature and as such are not included in the determination of the RoU operating lease asset and lease liability, but are recognized in the period in which the obligation for those payments is incurred. The Company’s operating leases may include options to extend or terminate the lease, which are not included in the determination of the RoU operating asset or lease liability unless they are reasonably certain to be exercised. The Company's operating leases have remaining lease terms of 1 year to 12 years , some of which include options to extend the leases. The Company typically does not include its renewal options in its lease terms for calculating its RoU operating lease asset and lease liability as the renewal options allow the Company to maintain operational flexibility and the Company is not reasonably certain it will exercise these renewal options until close to the initial end date of the lease. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. As the Company's operating leases do not provide an implicit rate, the Company’s incremental borrowing rate, based on the information available at the lease commencement date, is used in determining the present value of lease payments. The Company primarily subleases floor space within its New Jersey and New York lease properties to various third parties. The lease term for these subleases typically corresponds to the original lease term. Balance Sheet Classification of Operating Lease Assets and Liabilities Balance Sheet Line Item September 30, 2019 (in millions) Assets Operating lease assets Other Assets $ 333 Liabilities Operating lease liabilities Other Liabilities $ 426 The table below summarizes the components of lease costs for the three and nine months ended September 30, 2019 . Lease Costs Three Months Ended Nine Months Ended (in millions) Operating lease cost (1) $ 20 $ 57 Variable operating lease cost 3 8 Sublease income (5 ) (13 ) Short-term lease expense — 2 Net lease cost $ 18 $ 54 _____________ (1) Operating lease cost for the three months ended March 31, 2019 previously reported as $53 million , has been revised to $20 million to properly exclude impairments recognized prior to the adoption of ASC 842. Maturities of lease liabilities as of September 30, 2019 are as follows: Maturities of Lease Liabilities September 30, 2019 (in millions) Operating Leases (1): 2019 $ 24 2020 95 2021 91 2022 87 2023 79 Thereafter 90 Total lease payments 466 Less: Interest (40 ) Present value of lease liabilities $ 426 During 2018, AXA Equitable Life entered into one additional operating real estate lease with an estimated total base rent of $11 million . This operating lease commenced in August 2019 with a lease term of 10 years . The below table presents the Company’s weighted-average remaining operating lease term and weighted-average discount rate. Weighted Averages - Remaining Operating Lease Term and Discount Rate September 30, 2019 Weighted-average remaining operating lease term 6 years Weighted-average discount rate for operating leases 3.10 % Supplemental cash flow information related to leases was as follows: Lease Liabilities Information Nine Months Ended September 30, 2019 (in millions) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 65 Non-cash transactions: Leased assets obtained in exchange for new operating lease liabilities $ 42 The following table presents the Company’s future minimum lease obligation under ASC 840 as of December 31, 2018 : December 31, 2018 Calendar Year (in millions) 2019 $ 81 2020 $ 74 2021 $ 69 2022 $ 67 2023 $ 63 Thereafter $ 66 |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Income tax expense for the three and nine months ended September 30, 2019 and 2018 was 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 periods. The tax benefit recognized year-to-date 2019 was limited to the amount that would have been recognized if the year-to-date loss was the anticipated loss for the full year. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended |
Sep. 30, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS The Company’s significant transactions during the nine months ended September 30, 2019 with related parties are summarized below. Loans from Affiliates Senior Surplus Notes On December 28, 2018, AXA Equitable issued a $572 million senior surplus note due December 28, 2019 to Holdings, which bears interest at a fixed rate of 3.75% , payable semi-annually. The surplus note is intended to have priority in right of payments and in all other respects to any and all other surplus notes issued by AXA Equitable at any time. AXA Equitable repaid this note and $4 million of related interest expense on March 5, 2019. Investment management fees The Company recorded investment management fee expense from AllianceBernstein of $25 million and $23 million for the three months ended September 30, 2019 and 2018 , respectively, and $76 million and $65 million , for the nine months ended September 30, 2019 and 2018 , respectively. Commitment to Invest in Fund Sponsored by AXA Real Estate Investment Managers US LLC (“AXA REIM”) AXA Equitable has an outstanding commitment as of September 30, 2019 to invest $15 million in a real estate private equity fund sponsored by AXA REIM. |
EQUITY
EQUITY | 9 Months Ended |
Sep. 30, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Equity | EQUITY Accumulated Other Comprehensive Income (Loss) AOCI represents cumulative gains (losses) on items that are not reflected in Net income (loss). The balances as of September 30, 2019 and 2018 follow: September 30, 2019 2018 (in millions) Unrealized gains (losses) on investments $ 2,145 $ (845 ) Defined benefit pension plans (7 ) (4 ) Total accumulated other comprehensive income (loss) from continuing operations 2,138 (849 ) Less: Accumulated other comprehensive income (loss) attributable to discontinued operations, net of noncontrolling interest — 18 Accumulated other comprehensive income (loss) attributable to AXA Equitable $ 2,138 $ (867 ) The components of OCI, net of taxes for the three and nine months ended September 30, 2019 and 2018 follow: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 (in millions) Change in net unrealized gains (losses) on investments: Net unrealized gains (losses) arising during the period $ 1,224 $ (438 ) $ 3,750 $ (1,770 ) (Gains) losses reclassified to Net income (loss) during the period (1) (159 ) 8 (157 ) (59 ) Net unrealized gains (losses) on investments 1,065 (430 ) 3,593 (1,829 ) Adjustments for policyholders’ liabilities, DAC, insurance liability loss recognition and other (491 ) 27 (964 ) 371 Change in unrealized gains (losses), net of adjustments (net of deferred income tax expense (benefit) of $152, $(107), $693 and $(387)) 574 (403 ) 2,629 (1,458 ) Change in defined benefit plans: Reclassification to Net income (loss) of amortization of net prior service credit included in net periodic cost — (3 ) — (8 ) Change in defined benefit plans (net of deferred income tax expense (benefit) of $0, $(1), $0 and $(2)) — (3 ) — (8 ) Total other comprehensive income (loss), net of income taxes from continuing operations 574 (406 ) 2,629 (1,466 ) Other comprehensive income (loss) from discontinued operations, net of income taxes — 3 — 1 Other comprehensive income (loss) attributable to AXA Equitable $ 574 $ (403 ) $ 2,629 $ (1,465 ) ______________ (1) See “Reclassification adjustments” in Note 3 . Reclassification amounts are presented net of income tax expense (benefit) of $(43) million , $2 million , $(42) million and $(16) million for the three and nine months ended September 30, 2019 and 2018 , 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. |
REDEEMABLE NONCONTROLLING INTER
REDEEMABLE NONCONTROLLING INTEREST | 9 Months Ended |
Sep. 30, 2019 | |
Noncontrolling Interest [Abstract] | |
Redeemable Noncontrolling Interest | REDEEMABLE NONCONTROLLING INTEREST The changes in the components of redeemable noncontrolling interests were: Three Months Ended September 30, Nine Months Ended 2019 2018 2019 2018 (in millions) Balance, beginning of period $ 42 $ 37 $ 39 $ 25 Net earnings (loss) attributable to redeemable noncontrolling interests — 2 3 — Purchase/change of redeemable noncontrolling interests 3 (1 ) 4 13 Balance, end of period $ 46 $ 38 $ 46 $ 38 |
COMMITMENT AND CONTINGENT LIABI
COMMITMENT AND CONTINGENT LIABILITIES | 9 Months Ended |
Sep. 30, 2019 | |
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 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 where a loss is reasonably possible, 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 September 30, 2019 , 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 $100 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 August 2015, a 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 September 2018, the Second Circuit issued its mandate, following AXA Equitable’s notification to the court that it would not file a petition for writ of certiorari. The case was transferred in December 2018 and is pending in Connecticut Superior Court, Judicial District of Stamford. We are vigorously defending this matter. 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 rate 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. A second putative class action was filed in Arizona in 2017 and consolidated with the Brach matter. The current consolidated amended class action 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; and 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. Five other federal actions challenging the COI rate increase are also pending against AXA Equitable and have been coordinated with the Brach action for the purposes of pre-trial activities. They contain allegations similar to those in the Brach action as well as additional allegations for violations of various states’ consumer protection statutes and common law fraud. Three actions are also pending against AXA Equitable in New York state court. AXA Equitable is vigorously defending each of these matters. 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 Note 4 . Funding agreements are reported in Policyholders’ account balances in the consolidated balance sheets. Change in FHLBNY Funding Agreements during the Nine Months Ended September 30, 2019 Outstanding Balance at December 31, 2018 Issued During the Period Repaid During the Period Long-term Agreements Maturing Within One Year Outstanding Balance at September 30, 2019 (in millions) Short-term funding agreements: Due in one year or less $ 1,640 $ 17,080 $ 14,570 $ 58 $ 4,208 Long-term funding agreements: Due in years two through five 1,569 — — (58 ) 1,511 Due in more than five years 781 — — — 781 Total long-term funding agreements 2,350 — — (58 ) 2,292 Total funding agreements (1) $ 3,990 $ 17,080 $ 14,570 $ — $ 6,500 ______________ (1) The $10 million and $12 million difference between the funding agreements carrying values shown in Note 7 in the Carrying Values and Fair Values for Financial Instruments Not Otherwise Disclosed table at September 30, 2019 and December 31, 2018 , respectively, reflects the remaining amortization of a hedge implemented and closed, which locked in the funding agreements’ borrowing rates. Guarantees and Other Commitments At September 30, 2019 , the Company had $876 million of commitments under equity financing arrangements to certain limited partnerships, including $246 million of commitments to funds managed by affiliates. In addition, at September 30, 2019 , the Company had $179 million of commitments under equity financing arrangements to existing mortgage loan agreements. The Company had $17 million of undrawn letters of credit related to reinsurance at September 30, 2019 . Pursuant to certain assumption agreements (the “Assumption Agreements”) on October 1, 2018, Holdings 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 as well as under the AXA Equitable Retirement plan, a frozen qualified pension plan. AXA Equitable remains secondarily liable for its obligations under these plans and would recognize such liabilities in the event Holdings does not perform under the terms of the Assumption Agreements. |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 9 Months Ended |
Sep. 30, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | DISCONTINUED OPERATIONS Effective December 31, 2018, the Company and its subsidiaries transferred all economic interests in the business of AB to a newly created entity, Alpha Unit Holdings, LLC (“Alpha”). The Company distributed all equity interests in Alpha to AXA Equitable Financial Services, LLC, a wholly-owned subsidiary of Holdings. The AB transfer and subsequent distribution of Alpha equity interests (“the AB Business Transfer”) removed the authority to control the business of AB and as such, the results of AB are reflected in the Company’s consolidated financial statements as discontinued operations and are presented in Net income (loss) from discontinued operations, net of taxes. Intercompany transactions between the Company and AB prior to the AB Business Transfer have been eliminated. Ongoing service transactions with AB are reported as related party transactions as further described in Note 10 . The table below presents AB’s revenues recognized in three and nine months ended September 30, 2018 , disaggregated by category: Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 (in millions) Investment management and service fees: Base fees $ 571 $ 1,700 Performance-based fees 41 83 Research services 103 324 Distribution services 104 318 Shareholder services 19 58 Other 5 16 Total investment management and service fees $ 843 $ 2,499 The following table presents the amounts related to the Net income of AB that has been reflected in Discontinued Operations: Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 (in millions) REVENUES Net derivative gains (losses) $ (6 ) $ (4 ) Net investment income (loss) 10 55 Investment management and service fees 826 2,446 Other income 3 6 Total revenues 833 2,503 BENEFITS AND OTHER DEDUCTIONS Compensation and benefits 357 1,061 Distribution-related payments 107 323 Interest expense 3 7 Other operating costs and expenses 187 547 Total benefits and other deductions 654 1,938 Income from discontinued operations, before income taxes 179 565 Income tax expense (21 ) (46 ) Net income from discontinued operations, net of taxes 158 519 Less: Net income attributable to the noncontrolling interest (127 ) (438 ) Net income from discontinued operations, net of taxes and noncontrolling interest $ 31 $ 81 |
REVISION OF PRIOR PERIOD FINANC
REVISION OF PRIOR PERIOD FINANCIAL STATEMENTS | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
Revision of Prior Period Financial Statements | REVISION OF PRIOR PERIOD FINANCIAL STATEMENTS Reclassification of DAC Capitalization During the fourth quarter of 2018, the Company changed the presentation of the capitalization of DAC in the consolidated statements of income for all prior periods presented herein by netting the capitalized amounts within the applicable expense line items, such as Compensation and benefits, Commissions and Other operating costs and expenses. Previously, the Company had netted the capitalized amounts within the Amortization of DAC. There was no impact on Net income (loss) or Comprehensive income (loss) from this reclassification. See Note 2 for further details of this reclassification. Revisions of Prior Period Financial Statements During the fourth quarter of 2018, the Company identified certain cash flows that were incorrectly classified in the Company’s consolidated statements of cash flows. The Company has determined that these misclassifications were not material to its financial statements of any period. The impact of items included in the following revision tables on the consolidated statement of cash flows for the nine months ended September 30, 2018 were corrected in the comparative consolidated statements of cash flows included herein for the nine months ended September 30, 2019 and 2018 . Discontinued Operations As further described in Note 14 , as a result of the AB Business Transfer in the fourth quarter of 2018, AB’s operations are now reflected as discontinued operations in the Company’s consolidated financial statements. The financial information for prior periods presented in the consolidated financial statements have been adjusted to reflect AB as discontinued operations. Revision of Consolidated Financial Statements for the Nine Months Ended September 30, 2018 The following tables present line items of the consolidated statement of cash flows for the nine months ended September 30, 2018 that have been affected by the revisions. This information has been corrected from the information previously presented in the Company’s September 30, 2018 Form 10-Q. For these items, the tables detail the amounts as previously reported and the impact upon those line items due to the reclassifications to conform to the current presentation, the adjustment for discontinued operations, revisions and the amounts as currently revised. Prior period amounts have been reclassified to conform to current period presentation, where applicable, and are summarized in the accompanying tables. Tables for the other consolidated financial statements as of or for the three and nine months ended September 30, 2018 are not presented as these revisions were already reflected in the Company’s September 30, 2018 Form 10-Q. Nine Months Ended September 30, 2018 As Pre-viously Presentation Reclassifi-cations As Adjusted Impact of Revisions As Revised (in millions) Consolidated Statement of Cash Flows: Cash flows from operating activities: Adjustments to reconcile Net income (loss) to Net cash provided by (used in) operating activities: Amortization of deferred sales commission $ 17 $ (17 ) $ — $ — $ — Amortization and depreciation (60 ) 318 258 — 258 Equity (income) loss from limited partnerships — (83 ) (83 ) — (83 ) Distribution from joint ventures and limited partnerships 63 (63 ) — — — Cash received on the recapture of captive reinsurance 1,099 — 1,099 174 1,273 Changes in: DAC (129 ) 129 — — — Capitalization of DAC — (432 ) (432 ) — (432 ) Future policy benefits (58 ) — (58 ) (541 ) (599 ) Reinsurance recoverable 20 — 20 86 106 Current and deferred income taxes (264 ) — (264 ) (400 ) (664 ) Other, net 123 146 269 179 448 Net cash provided by (used in) operating activities $ 1,614 $ (2 ) $ 1,612 $ (502 ) $ 1,110 Cash flows from investing activities: Proceeds from the sale/maturity/prepayment of: Trading account securities $ 6,913 $ — $ 6,913 $ 77 $ 6,990 Real estate joint ventures — 140 140 — 140 Short-term investments — 1,806 1,806 — 1,806 Other 344 (140 ) 204 — 204 Short-term investments — (1,530 ) (1,530 ) 204 (1,326 ) Cash settlements related to derivative instruments (584 ) — (584 ) (492 ) (1,076 ) Change in short-term investments 350 (273 ) 77 (77 ) — Other, net 305 (1 ) 304 (19 ) 285 Net cash provided by (used in) investing activities $ (2,990 ) $ 2 $ (2,988 ) $ (307 ) $ (3,295 ) Cash flows from financing activities: Policyholders’ account balances: Deposits $ 7,852 $ — $ 7,852 $ (1,668 ) $ 6,184 Withdrawals (4,014 ) — (4,014 ) 760 (3,254 ) Transfers (to) from Separate Accounts (338 ) — (338 ) 1,717 1,379 Net cash provided by (used in) financing activities $ 1,293 $ — $ 1,293 $ 809 $ 2,102 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS Holdings Notes On November 4, 2019, Holdings issued $900 million of floating rate notes due November 4, 2024 to AXA Equitable (the “Notes”). The Notes will generally bear interest at a rate per annum equal to the sum of: (i) the LIBOR rate calculated for the interest period; and (ii) 1.33% . |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Adoption of New Accounting Pronouncements and Future Adoption of New Accounting Pronouncements | Adoption of New Accounting Pronouncements Description Effect on the Financial Statement or Other Significant Matters ASU 2017-12: Derivatives and Hedging (Topic 815), as clarified and amended by ASU 2019-04: Codification Improvements to Topic 326, Financial Instruments—Credit Losses; Topic 815, Derivatives and Hedging; and Topic 825, Financial Instruments The amendments in these ASUs better align an entity’s risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. On January 1, 2019, the Company adopted the new hedging guidance. Adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. Description Effect on the Financial Statement or Other Significant Matters ASU 2017-08: Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20) This ASU 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. On January 1, 2019, the Company adopted the new guidance on accounting for certain premiums on callable debt securities. As the Company’s existing accounting practices aligned with the guidance in the ASU, adoption of the new standard did not have a material impact on the Company’s consolidated financial statements. ASU 2016-02: Leases (Topic 842) This ASU contains 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. Lessor accounting will remain substantially unchanged from the current model but has been updated to align with certain changes made to the lessee model. On January 1, 2019, the Company adopted the new leases standard using the simplified modified retrospective transition method, as of the adoption date. Prior comparable periods will not be adjusted or presented under this method. We applied several practical expedients offered by ASC 842 upon adoption of this standard. These included continuing to account for existing leases based on judgment made under legacy U.S. GAAP as it relates to determining classification of leases, unamortized initial direct costs and whether contracts are leases or contain leases. We also used the practical expedient to use hindsight in determining lease terms (using knowledge and expectations as of the standard’s adoption date instead of the previous assumptions under legacy U.S. GAAP) and evaluated impairment of our right-of-use (“RoU”) assets in the transition period (using most up-to-date information.) Adoption of this standard resulted in the recognition, as of January 1, 2019, of additional RoU operating lease assets of $347 million reported in Other assets and operating lease liabilities of $439 million reported in Other liabilities in accompanying consolidated balance sheets. The operating RoU assets recognized as of January 1, 2019 are net of deferred rent of $58 million and liabilities associated with previously recognized impairments of $34 million. See Note 8 for additional information. Future Adoption of New Accounting Pronouncements Description Effective Date and Method of Adoption Effect on the Financial Statement or Other Significant Matters ASU 2018-17: Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities This ASU provides guidance requiring that indirect interests held through related parties in common control arrangements be considered on a proportional basis for determining whether fees paid to decision makers and service providers are variable interests. Effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted. All entities are required to apply the amendments in this update retrospectively with a cumulative-effect adjustment to retained earnings at the beginning of the earliest period presented. The Company will adopt this new standard effective for January 1, 2020. Management does not expect the adoption of this standard to materially impact the Company’s financial position or results of operations. ASU 2018-13: Fair Value Measurement (Topic 820) This ASU improves the effectiveness of fair value disclosures in the notes to financial statements. Amendments in this ASU modify disclosure requirements in Topic 820, including the removal or modification of certain disclosure requirements, and the addition of new disclosure requirements. Effective for fiscal years beginning after December 15, 2019. Early adoption is permitted, with the option to early adopt amendments to remove or modify disclosures, with full adoption of additional requirements delayed until their effective date. Amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively. All other amendments should be applied retrospectively. Management has elected to early adopt the removed disclosures relating to transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for timing of transfers between levels and valuation processes for Level 3 fair value measurements. The Company will delay adoption of the additional disclosures until their effective date. Description Effective Date and Method of Adoption Effect on the Financial Statement or Other Significant Matters ASU 2018-12: Financial Services—Insurance (Topic 944) This ASU provides targeted improvements to existing recognition, measurement, presentation, and disclosure requirements for long-duration contracts issued by an insurance entity. The ASU primarily impacts four key areas, including: Effective for fiscal years beginning after December 31, 2020. Early adoption is permitted. On October 16, 2019, the FASB affirmed its previous decision to delay the effective date to fiscal years beginning after December 15, 2021, and interim periods within those fiscal years. Management currently is evaluating the impact that adoption of this guidance will have on the Company’s consolidated financial statements, however the adoption of the ASU is expected to have a significant impact on the Company’s consolidated financial condition, results of operations, cash flows and required disclosures, as well as processes and controls. Measurement of the liability for future policy benefits for traditional and limited payment contracts. The ASU requires companies to review, and if necessary, update, cash flow assumptions at least annually for non-participating traditional and limited-payment insurance contracts. Interest rates used to discount the liability will need to be updated quarterly using an upper medium grade (low credit risk) fixed-income instrument yield. For the liability for future policyholder benefits for traditional and limited payment contracts, companies can elect one of two adoption methods. Companies can either elect a modified retrospective transition method applied to contracts in force as of the beginning of the earliest period presented on the basis of their existing carrying amounts, adjusted for the removal of any related amounts in AOCI or a full retrospective transition method using actual historical experience information as of contract inception. The same adoption method must be used for deferred policy acquisition costs. Measurement of market risk benefits (“MRBs”). MRBs, as defined under the ASU, will encompass certain GMxB features associated with variable annuity products and other general account annuities with other than nominal market risk. The ASU requires MRBs to be measured at fair value with changes in value attributable to changes in instrument-specific credit risk recognized in OCI. Amortization of deferred policy acquisition costs. The ASU simplifies the amortization of deferred policy acquisition costs and other balances amortized in proportion to premiums, gross profits, or gross margins, requiring such balances to be amortized on a constant level basis over the expected term of the contracts. Deferred costs will be required to be written off for unexpected contract terminations but will not be subject to impairment testing. Expanded footnote disclosures. The ASU requires additional disclosures including disaggregated rollforwards of beginning to ending balances of the liability for future policy benefits, policyholder account balances, MRBs, Separate Accounts liabilities and deferred policy acquisition costs. Companies will also be required to disclose information about significant inputs, judgements, assumptions and methods used in measurement. For MRBs, the ASU should be applied retrospectively as of the beginning of the earliest period presented. For deferred policy acquisition costs, companies can elect one of two adoption methods. Companies can either elect a modified retrospective transition method applied to contracts in force as of the beginning of the earliest period presented on the basis of their existing carrying amounts, adjusted for the removal of any related amounts in AOCI or a full retrospective transition method using actual historical experience information as of contract inception. The same adoption method must be used for the liability for future policyholder benefits for traditional and limited payment contracts. Description Effective Date and Method of Adoption Effect on the Financial Statement or Other Significant Matters ASU 2016-13: Financial Instruments—Credit Losses (Topic 326), as clarified and amended by ASU 2018-19: Codification Improvements to Topic 326, Financial Instruments—Credit Losses, ASU 2019-04: Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments and ASU 2019-05: Financial Instruments—Credit Losses (Topic 326) Targeted Transition Relief ASU 2016-13 contains new guidance which 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. Effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted as of the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. These amendments should be applied through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. The Company is continuing to develop, validate and implement its updated expected credit loss models, processes and controls related to the identified financial assets that fall within the scope of the new standard. While Management expects the adoption will not materially impact the Company’s financial position or results of operations, it currently anticipates that the standard will have the most impact to its commercial and agricultural mortgage loan portfolios. However, the extent of the impact will depend on various factors including the economic environment, structure and size of the Company’s loan portfolio and other assets impacted by the standard. |
Accounting and Consolidation of VIEs | Accounting and Consolidation of Variable Interest Entities (“VIEs”) At September 30, 2019 , the Company held $1.1 billion of investment assets in the form of equity interests issued by non-corporate legal entities determined under the 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 sheets as Other equity investments and to apply the equity method of accounting for these positions. The net assets of these non-consolidated VIEs are $169.6 billion at September 30, 2019 . The Company’s maximum exposure to loss from its direct involvement with these VIEs is the carrying value of its investment of $1.1 billion and $865 million of unfunded commitments at September 30, 2019 . The Company has no further economic interest in these VIEs in the form of guarantees, derivatives, credit enhancements or similar instruments and obligations. At September 30, 2019 , 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 Life Insurance Company (“AXA Equitable Life”) and AXA France and holds an investment in a real estate venture. Included in the Company’s consolidated balance sheet at September 30, 2019 related to this VIE is $33 million of Real estate held for production of income. In addition, one non-consolidated real estate joint venture totaling $19 million at September 30, 2019 has been deemed to be “held for sale” and is reported in Other invested assets. |
Revision of Prior Period Financial Statements | Revision of Prior Period Financial Statements During the fourth quarter of 2018, the Company identified certain cash flows that were incorrectly classified in the Company’s consolidated statements of cash flows. The Company has determined that these misclassifications were not material to its financial statements of any period. The impact of items included in the revision tables within Note 15 on the consolidated statement of cash flows for the nine months ended September 30, 2018 were corrected in the comparative consolidated statements of cash flows included herein . See Note 15 for further information. |
Fair Value Measurements | The accounting guidance establishes 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 fair value for those instruments that are actively traded in financial markets. In cases where quoted market prices are not available, fair values are measured using present value or other valuation techniques. The fair value determinations are made at a specific point in time, based on available market information and judgments about the financial instrument, including estimates of the timing and amount of expected future cash flows and the credit standing of counterparties. Such adjustments do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument, nor do they consider the tax impact of the realization of unrealized gains or losses. In many cases, the fair value cannot be substantiated by direct comparison to independent markets, nor can the disclosed value be realized in immediate settlement of the instrument. Management is responsible for the determination of the value of investments carried at fair value and the supporting methodologies and assumptions. Under the terms of various service agreements, the Company often utilizes independent valuation service providers to gather, analyze, and interpret market information and derive fair values based upon relevant methodologies and assumptions for individual securities. These independent valuation service providers typically obtain data about market transactions and other key valuation model inputs from multiple sources and, through the use of widely accepted valuation models, provide a single fair value measurement for individual securities for which a fair value has been requested. As further described below with respect to specific asset classes, these inputs include, but are not limited to, market prices for recent trades and transactions in comparable securities, benchmark yields, interest rate yield curves, credit spreads, quoted prices for similar securities, and other market-observable information, as applicable. Specific attributes of the security being valued also are considered, including its term, interest rate, credit rating, industry sector, and when applicable, collateral quality and other security- or issuer-specific information. When insufficient market observable information is available upon which to measure fair value, the Company either will request brokers knowledgeable about these securities to provide a non-binding quote or will employ internal valuation models. Fair values received from independent valuation service providers and brokers and those internally modeled or otherwise estimated are assessed for reasonableness. |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | Description Effect on the Financial Statement or Other Significant Matters ASU 2017-12: Derivatives and Hedging (Topic 815), as clarified and amended by ASU 2019-04: Codification Improvements to Topic 326, Financial Instruments—Credit Losses; Topic 815, Derivatives and Hedging; and Topic 825, Financial Instruments The amendments in these ASUs better align an entity’s risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. On January 1, 2019, the Company adopted the new hedging guidance. Adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. Description Effect on the Financial Statement or Other Significant Matters ASU 2017-08: Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20) This ASU 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. On January 1, 2019, the Company adopted the new guidance on accounting for certain premiums on callable debt securities. As the Company’s existing accounting practices aligned with the guidance in the ASU, adoption of the new standard did not have a material impact on the Company’s consolidated financial statements. ASU 2016-02: Leases (Topic 842) This ASU contains 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. Lessor accounting will remain substantially unchanged from the current model but has been updated to align with certain changes made to the lessee model. On January 1, 2019, the Company adopted the new leases standard using the simplified modified retrospective transition method, as of the adoption date. Prior comparable periods will not be adjusted or presented under this method. We applied several practical expedients offered by ASC 842 upon adoption of this standard. These included continuing to account for existing leases based on judgment made under legacy U.S. GAAP as it relates to determining classification of leases, unamortized initial direct costs and whether contracts are leases or contain leases. We also used the practical expedient to use hindsight in determining lease terms (using knowledge and expectations as of the standard’s adoption date instead of the previous assumptions under legacy U.S. GAAP) and evaluated impairment of our right-of-use (“RoU”) assets in the transition period (using most up-to-date information.) Adoption of this standard resulted in the recognition, as of January 1, 2019, of additional RoU operating lease assets of $347 million reported in Other assets and operating lease liabilities of $439 million reported in Other liabilities in accompanying consolidated balance sheets. The operating RoU assets recognized as of January 1, 2019 are net of deferred rent of $58 million and liabilities associated with previously recognized impairments of $34 million. See Note 8 for additional information. Future Adoption of New Accounting Pronouncements Description Effective Date and Method of Adoption Effect on the Financial Statement or Other Significant Matters ASU 2018-17: Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities This ASU provides guidance requiring that indirect interests held through related parties in common control arrangements be considered on a proportional basis for determining whether fees paid to decision makers and service providers are variable interests. Effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted. All entities are required to apply the amendments in this update retrospectively with a cumulative-effect adjustment to retained earnings at the beginning of the earliest period presented. The Company will adopt this new standard effective for January 1, 2020. Management does not expect the adoption of this standard to materially impact the Company’s financial position or results of operations. ASU 2018-13: Fair Value Measurement (Topic 820) This ASU improves the effectiveness of fair value disclosures in the notes to financial statements. Amendments in this ASU modify disclosure requirements in Topic 820, including the removal or modification of certain disclosure requirements, and the addition of new disclosure requirements. Effective for fiscal years beginning after December 15, 2019. Early adoption is permitted, with the option to early adopt amendments to remove or modify disclosures, with full adoption of additional requirements delayed until their effective date. Amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively. All other amendments should be applied retrospectively. Management has elected to early adopt the removed disclosures relating to transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for timing of transfers between levels and valuation processes for Level 3 fair value measurements. The Company will delay adoption of the additional disclosures until their effective date. Description Effective Date and Method of Adoption Effect on the Financial Statement or Other Significant Matters ASU 2018-12: Financial Services—Insurance (Topic 944) This ASU provides targeted improvements to existing recognition, measurement, presentation, and disclosure requirements for long-duration contracts issued by an insurance entity. The ASU primarily impacts four key areas, including: Effective for fiscal years beginning after December 31, 2020. Early adoption is permitted. On October 16, 2019, the FASB affirmed its previous decision to delay the effective date to fiscal years beginning after December 15, 2021, and interim periods within those fiscal years. Management currently is evaluating the impact that adoption of this guidance will have on the Company’s consolidated financial statements, however the adoption of the ASU is expected to have a significant impact on the Company’s consolidated financial condition, results of operations, cash flows and required disclosures, as well as processes and controls. Measurement of the liability for future policy benefits for traditional and limited payment contracts. The ASU requires companies to review, and if necessary, update, cash flow assumptions at least annually for non-participating traditional and limited-payment insurance contracts. Interest rates used to discount the liability will need to be updated quarterly using an upper medium grade (low credit risk) fixed-income instrument yield. For the liability for future policyholder benefits for traditional and limited payment contracts, companies can elect one of two adoption methods. Companies can either elect a modified retrospective transition method applied to contracts in force as of the beginning of the earliest period presented on the basis of their existing carrying amounts, adjusted for the removal of any related amounts in AOCI or a full retrospective transition method using actual historical experience information as of contract inception. The same adoption method must be used for deferred policy acquisition costs. Measurement of market risk benefits (“MRBs”). MRBs, as defined under the ASU, will encompass certain GMxB features associated with variable annuity products and other general account annuities with other than nominal market risk. The ASU requires MRBs to be measured at fair value with changes in value attributable to changes in instrument-specific credit risk recognized in OCI. Amortization of deferred policy acquisition costs. The ASU simplifies the amortization of deferred policy acquisition costs and other balances amortized in proportion to premiums, gross profits, or gross margins, requiring such balances to be amortized on a constant level basis over the expected term of the contracts. Deferred costs will be required to be written off for unexpected contract terminations but will not be subject to impairment testing. Expanded footnote disclosures. The ASU requires additional disclosures including disaggregated rollforwards of beginning to ending balances of the liability for future policy benefits, policyholder account balances, MRBs, Separate Accounts liabilities and deferred policy acquisition costs. Companies will also be required to disclose information about significant inputs, judgements, assumptions and methods used in measurement. For MRBs, the ASU should be applied retrospectively as of the beginning of the earliest period presented. For deferred policy acquisition costs, companies can elect one of two adoption methods. Companies can either elect a modified retrospective transition method applied to contracts in force as of the beginning of the earliest period presented on the basis of their existing carrying amounts, adjusted for the removal of any related amounts in AOCI or a full retrospective transition method using actual historical experience information as of contract inception. The same adoption method must be used for the liability for future policyholder benefits for traditional and limited payment contracts. Description Effective Date and Method of Adoption Effect on the Financial Statement or Other Significant Matters ASU 2016-13: Financial Instruments—Credit Losses (Topic 326), as clarified and amended by ASU 2018-19: Codification Improvements to Topic 326, Financial Instruments—Credit Losses, ASU 2019-04: Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments and ASU 2019-05: Financial Instruments—Credit Losses (Topic 326) Targeted Transition Relief ASU 2016-13 contains new guidance which 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. Effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted as of the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. These amendments should be applied through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. The Company is continuing to develop, validate and implement its updated expected credit loss models, processes and controls related to the identified financial assets that fall within the scope of the new standard. While Management expects the adoption will not materially impact the Company’s financial position or results of operations, it currently anticipates that the standard will have the most impact to its commercial and agricultural mortgage loan portfolios. However, the extent of the impact will depend on various factors including the economic environment, structure and size of the Company’s loan portfolio and other assets impacted by the standard. The reclassification adjustments for the three and nine months ended September 30, 2018 are presented in the table below. Capitalization of DAC reclassified to Compensation and benefits, Commissions and Other operating costs and expenses reduced the amounts previously reported in those expense line items, while the capitalization of DAC reclassified from the Amortization of deferred policy acquisition costs line item increases that expense line item. Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 (in millions) Reductions to expense line items: Compensation and benefits $ 33 $ 98 Commissions 118 331 Other operating costs and expenses — 3 Total reductions $ 151 $ 432 Increase to expense line item: Amortization of deferred policy acquisition costs $ 151 $ 432 |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Available-for-sale Securities by Classification | The following tables provide information relating to fixed maturities classified as available-for-sale (“AFS”). Available-for-Sale Fixed Maturities by Classification Amortized Gross Unrealized Gross Unrealized Fair OTTI (in millions) September 30, 2019: Fixed Maturities: Corporate (1) $ 41,221 $ 2,189 $ 49 $ 43,361 $ — U.S. Treasury, government and agency 14,036 1,743 55 15,724 — States and political subdivisions 567 79 1 645 — Foreign governments 481 42 6 517 — Residential mortgage-backed (2) 170 12 — 182 — Asset-backed (3) 600 4 2 602 — Redeemable preferred stock 400 17 3 414 — Total at September 30, 2019 $ 57,475 $ 4,086 $ 116 $ 61,445 $ — December 31, 2018: Fixed Maturities: Corporate (1) $ 26,690 $ 385 $ 699 $ 26,376 $ — U.S. Treasury, government and agency 13,646 143 454 13,335 — States and political subdivisions 408 47 1 454 — Foreign governments 515 17 13 519 — Residential mortgage-backed (2) 193 9 — 202 — Asset-backed (3) 600 1 11 590 2 Redeemable preferred stock 440 16 17 439 — Total at December 31, 2018 $ 42,492 $ 618 $ 1,195 $ 41,915 $ 2 ______________ (1) Corporate fixed maturities includes both public and private issues. (2) Includes publicly traded agency pass-through securities and collateralized obligations. (3) Includes credit-tranched securities collateralized by sub-prime mortgages and other asset types and credit tenant loans. (4) Amounts represent OTTI losses in AOCI, which were not included in Net income (loss). |
Available-for-sale Securities Fixed Maturities Contractual Maturities | The contractual maturities of AFS fixed maturities at September 30, 2019 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. Contractual Maturities of Available-for-Sale Fixed Maturities Amortized Cost Fair Value (in millions) September 30, 2019: Due in one year or less $ 3,099 $ 3,118 Due in years two through five 13,296 13,691 Due in years six through ten 15,689 16,769 Due after ten years 24,221 26,669 Subtotal 56,305 60,247 Residential mortgage-backed 170 182 Asset-backed 600 602 Redeemable preferred stock 400 414 Total at September 30, 2019 $ 57,475 $ 61,445 |
Proceeds from Sales, Gross Gains (Losses) and OTTI for AFS Fixed Maturities | The following table shows proceeds from sales, gross gains (losses) from sales for AFS fixed maturities during the three and nine months ended September 30, 2019 and 2018 : Proceeds and Gains (Losses) on Sales for Available-for-Sale Fixed Maturities Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 (in millions) Proceeds from sales $ 3,839 $ 973 $ 6,756 $ 4,774 Gross gains on sales $ 207 $ 6 $ 224 $ 140 Gross losses on sales $ (4 ) $ (4 ) $ (25 ) $ (59 ) Total OTTI $ — $ (4 ) $ — $ (4 ) Non-credit losses recognized in OCI — — — — Credit losses recognized in Net income (loss) $ — $ (4 ) $ — $ (4 ) |
Fixed Maturities - Credit Loss Impairments | The following table sets forth the amount of credit loss impairments on AFS fixed maturities held by the Company at the dates indicated and the corresponding changes in such amounts: Available-for-Sale Fixed Maturities - Credit Loss Impairments Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 (in millions) Balances, beginning of period $ (18 ) $ (9 ) $ (46 ) $ (10 ) Previously recognized impairments on securities that matured, paid, prepaid or sold 3 — 31 1 Recognized impairments on securities impaired to fair value this period (1) — — — — Impairments recognized this period on securities not previously impaired — (4 ) — (4 ) 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 September 30, $ (15 ) $ (13 ) $ (15 ) $ (13 ) ______________ (1) Represents circumstances where the Company determined in the current period that it intends to sell the security, or it is more likely than not that it will be required to sell the security before recovery of the security’s amortized cost. |
Net Unrealized Gain (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 : Net Unrealized Gains (Losses) on Available-for-Sale Fixed Maturities |
All Other Net Unrealized Investment Gains (Losses) in AOCI | Net DAC Policyholders’ Deferred AOCI Gain (in millions) Balances at July 1, 2019 $ 2,622 $ (534 ) $ (86 ) $ (420 ) $ 1,582 Net investment gains (losses) arising during the period 1,548 — — — 1,548 Reclassification adjustment: — Included in Net income (loss) (201 ) — — — (201 ) Excluded from Net income (loss) (1) — — — — — Impact of net unrealized investment gains (losses) on: DAC — (291 ) — — (291 ) Deferred income taxes — — — (156 ) (156 ) Policyholders’ liabilities — — (315 ) — (315 ) Net unrealized investment gains (losses) excluding OTTI losses 3,969 (825 ) (401 ) (576 ) 2,167 Net unrealized investment gains (losses) with OTTI losses 1 (1 ) — — — Balances at September 30, 2019 $ 3,970 $ (826 ) $ (401 ) $ (576 ) $ 2,167 Balances at July 1, 2018 $ (245 ) $ 11 $ (110 ) $ (27 ) $ (371 ) Net investment gains (losses) arising during the period (554 ) — — — (554 ) Reclassification adjustment: Included in Net income (loss) 10 — — — 10 Excluded from Net income (loss) (1) — — — — — Impact of net unrealized investment gains (losses) on: DAC — 72 — — 72 Deferred income taxes — — — 112 112 Policyholders’ liabilities — — (62 ) — (62 ) Net unrealized investment gains (losses) excluding OTTI losses (789 ) 83 (172 ) 85 (793 ) Net unrealized investment gains (losses) with OTTI losses 1 — — — 1 Balances at September 30, 2018 $ (788 ) $ 83 $ (172 ) $ 85 $ (792 ) ______________ (1) Represents “transfers out” related to the portion of OTTI losses during the period that were not recognized in Net income (loss) for securities with no prior OTTI losses. Net DAC Policyholders’ Deferred AOCI Gain (in millions) Balances at January 1, 2019 $ (577 ) $ 39 $ (55 ) $ 125 $ (468 ) Net investment gains (losses) arising during the period 4,754 — — — 4,754 Reclassification adjustment: — Included in Net income (loss) (208 ) — — — (208 ) Excluded from Net income (loss) (1) — — — — — Impact of net unrealized investment gains (losses) on: DAC — (864 ) — — (864 ) Deferred income taxes — — — (701 ) (701 ) Policyholders’ liabilities — — (346 ) — (346 ) Net unrealized investment gains (losses) excluding OTTI losses 3,969 (825 ) (401 ) (576 ) 2,167 Net unrealized investment gains (losses) with OTTI losses 1 (1 ) — — — Balances at September 30, 2019 $ 3,970 $ (826 ) $ (401 ) $ (576 ) $ 2,167 Balances at January 1, 2018 $ 1,526 $ (315 ) $ (232 ) $ (300 ) $ 679 Net investment gains (losses) arising during the period (2,240 ) — — — (2,240 ) Reclassification adjustment: Included in Net income (loss) (75 ) — — — (75 ) Excluded from Net income (loss) (1) — — — — — Impact of net unrealized investment gains (losses) on: DAC — 398 — — 398 Deferred income taxes — — — 385 385 Policyholders’ liabilities — — 60 — 60 Net unrealized investment gains (losses) excluding OTTI losses (789 ) 83 (172 ) 85 (793 ) Net unrealized investment gains (losses) with OTTI losses 1 — — — 1 Balances at September 30, 2018 $ (788 ) $ 83 $ (172 ) $ 85 $ (792 ) ______________ (1) Represents “transfers out” related to the portion of OTTI losses during the period that were not recognized in Net income (loss) for securities with no prior OTTI losses. |
Schedule of Gross Unrealized Loss on Investments | The following tables disclose the fair values and gross unrealized losses of the 339 securities at September 30, 2019 and the 1,471 securities at December 31, 2018 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: Continuous Gross Unrealized Losses for Available-for-Sale Fixed Maturities Less Than 12 Months 12 Months or Longer Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (in millions) September 30, 2019: Fixed Maturities: Corporate $ 2,489 $ 24 $ 526 $ 25 $ 3,015 $ 49 U.S. Treasury, government and agency 1,568 55 — — 1,568 55 States and political subdivisions 33 1 — — 33 1 Foreign governments — — 47 6 47 6 Asset-backed 251 1 143 1 394 2 Redeemable preferred stock — — 50 3 50 3 Total at September 30, 2019 $ 4,341 $ 81 $ 766 $ 35 $ 5,107 $ 116 December 31, 2018: Fixed Maturities: Corporate $ 8,369 $ 306 $ 6,161 $ 393 $ 14,530 $ 699 U.S. Treasury, government and agency 2,636 68 3,154 386 5,790 454 States and political subdivisions — — 19 1 19 1 Foreign governments 109 3 76 10 185 13 Residential mortgage-backed — — 13 — 13 — Asset-backed 558 11 6 — 564 11 Redeemable preferred stock 160 12 31 5 191 17 Total at December 31, 2018 $ 11,832 $ 400 $ 9,460 $ 795 $ 21,292 $ 1,195 |
Net Investment Income (Loss) from Trading Securities | The table below shows a breakdown of Net investment income (loss) from trading account securities during the three and nine months ended September 30, 2019 and 2018 : Net Investment Income (Loss) from Trading Account Securities Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 (in millions) Net investment gains (losses) recognized during the period on securities held at the end of the period $ 7 $ (36 ) $ 431 $ (231 ) Net investment gains (losses) recognized on securities sold during the period 13 (19 ) (10 ) (17 ) Net investment gains (losses) on trading securities arising during the period 20 (55 ) 421 (248 ) Interest and dividend income from trading securities 59 89 220 228 Net investment income (loss) from trading securities $ 79 $ 34 $ 641 $ (20 ) |
Mortgage Loans by Loan-To-Value and Debt Service Coverage Ratios | The following tables provide information relating to the loan-to-value and debt service coverage ratios for commercial and agricultural mortgage loans at September 30, 2019 and December 31, 2018 . The values used in these ratio calculations were developed as part of the periodic review of the commercial and agricultural mortgage loan portfolio, which includes an evaluation of the underlying collateral value. Mortgage Loans by Loan-to-Value and Debt Service Coverage Ratios Debt Service Coverage Ratio (1) Total Mortgage Loans 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 (in millions) September 30, 2019: Commercial Mortgage Loans: 0% - 50% $ 794 $ 39 $ 215 $ 24 $ — $ — $ 1,072 50% - 70% 4,296 1,041 1,255 769 208 — 7,569 70% - 90% 158 110 70 98 142 — 578 90% plus — — 46 — — — 46 Total Commercial Mortgage Loans $ 5,248 $ 1,190 $ 1,586 $ 891 $ 350 $ — $ 9,265 Debt Service Coverage Ratio (1) Total Mortgage Loans 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 (in millions) Agricultural Mortgage Loans: 0% - 50% $ 291 $ 108 $ 257 $ 568 $ 327 $ 45 $ 1,596 50% - 70% 106 81 240 403 263 32 1,125 70% - 90% — — — 19 — — 19 90% plus — — — — — — — Total Agricultural Mortgage Loans $ 397 $ 189 $ 497 $ 990 $ 590 $ 77 $ 2,740 Total Mortgage Loans: 0% - 50% $ 1,085 $ 147 $ 472 $ 592 $ 327 $ 45 $ 2,668 50% - 70% 4,402 1,122 1,495 1,172 471 32 8,694 70% - 90% 158 110 70 117 142 — 597 90% plus — — 46 — — — 46 Total Mortgage Loans $ 5,645 $ 1,379 $ 2,083 $ 1,881 $ 940 $ 77 $ 12,005 December 31, 2018: Commercial Mortgage Loans: 0% - 50% $ 780 $ 21 $ 247 $ 24 $ — $ — $ 1,072 50% - 70% 4,908 656 1,146 325 151 — 7,186 70% - 90% 260 — 117 370 98 — 845 90% plus — — — 27 — — 27 Total Commercial Mortgage Loans $ 5,948 $ 677 $ 1,510 $ 746 $ 249 $ — $ 9,130 Agricultural Mortgage Loans: 0% - 50% $ 282 $ 147 $ 267 $ 543 $ 321 $ 51 $ 1,611 50% - 70% 112 46 246 379 224 31 1,038 70% - 90% — — — 19 27 — 46 90% plus — — — — — — — Total Agricultural Mortgage Loans $ 394 $ 193 $ 513 $ 941 $ 572 $ 82 $ 2,695 Total Mortgage Loans: 0% - 50% $ 1,062 $ 168 $ 514 $ 567 $ 321 $ 51 $ 2,683 50% - 70% 5,020 702 1,392 704 375 31 8,224 70% - 90% 260 — 117 389 125 — 891 90% plus — — — 27 — — 27 Total Mortgage Loans $ 6,342 $ 870 $ 2,023 $ 1,687 $ 821 $ 82 $ 11,825 ______________ (1) The debt service coverage ratio is calculated using the most recently reported 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 most recent fair value estimate of the property. The fair value of the underlying commercial properties is updated annually. |
Age Analysis of Past Due Mortgage Loans | The following table provides information relating to the aging analysis of past due mortgage loans at September 30, 2019 and December 31, 2018 . Age Analysis of Past Due Mortgage Loans 30-59 Days 60-89 Days 90 Days or More Total Current Total Financing Receivables Recorded Investment 90 Days or More and Accruing (in millions) September 30, 2019: Commercial $ — $ — $ — $ — $ 9,265 $ 9,265 $ — Agricultural 25 5 75 105 2,635 2,740 75 Total Mortgage Loans $ 25 $ 5 $ 75 $ 105 $ 11,900 $ 12,005 $ 75 December 31, 2018: Commercial $ — $ — $ 27 $ 27 $ 9,103 $ 9,130 $ — Agricultural 18 8 42 68 2,627 2,695 40 Total Mortgage Loans $ 18 $ 8 $ 69 $ 95 $ 11,730 $ 11,825 $ 40 |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments by Category | The tables below present quantitative disclosures about the Company’s derivative instruments, including those embedded in other contracts required to be accounted for as derivative instruments. Derivative Instruments by Category At September 30, 2019 Gains (Losses) Reported in Net Income (Loss) Nine Months Ended September 30, 2019 Fair Value Notional Amount Asset Derivatives Liability Derivatives (in millions) Freestanding Derivatives (1) (2): Equity contracts: Futures $ 6,686 $ — $ — $ (967 ) Swaps 9,561 81 56 (1,263 ) Options 49,081 3,946 1,513 1,241 Interest rate contracts: Swaps 25,781 1,196 382 2,844 Futures 15,934 — — 183 Swaptions 3,201 196 — 146 Credit contracts: Credit default swaps 1,232 19 — 13 Other freestanding contracts: Foreign currency contracts 1,114 5 5 (13 ) Margin — — — — Collateral — — 3,472 — Embedded Derivatives (2): GMIB reinsurance contracts — 2,853 — 882 GMxB derivative features liability (3) — — 9,363 (3,643 ) SCS, SIO, MSO and IUL indexed features (4) — — 2,178 (1,498 ) Total $ 112,590 $ 8,296 $ 16,969 $ (2,075 ) ______________ (1) Reported in Other invested assets in the consolidated balance sheets. (2) Reported in Net derivative gains (losses) in the consolidated statements of income (loss). (3) Reported in Future policy benefits and other policyholders’ liabilities in the consolidated balance sheets. (4) SCS, SIO, MSO and IUL indexed features are reported in Policyholders’ account balances in the consolidated balance sheets. At December 31, 2018 Gains (Losses) Reported in Net Income (Loss) Nine Months Ended September 30, 2018 Fair Value Notional Amount Asset Derivatives Liability Derivatives (in millions) Freestanding Derivatives (1) (2): Equity contracts: Futures $ 10,411 $ — $ — $ (489 ) Swaps 7,697 140 168 (482 ) Options 21,698 2,119 1,163 674 Interest rate contracts: Swaps 27,003 632 194 (1,012 ) Futures 11,448 — — 52 Credit contracts: Credit default swaps 1,282 17 — 4 Other freestanding contracts: Foreign currency contracts 2,097 27 14 59 Margin — 7 5 — Collateral — 3 1,564 — Embedded Derivatives (2): GMIB reinsurance contracts — 1,991 — (1,488 ) GMxB derivative features liability (3) — — 5,431 394 SCS, SIO, MSO and IUL indexed features (4) — — 687 (814 ) Total $ 81,636 $ 4,936 $ 9,226 $ (3,102 ) ______________ (1) Reported in Other invested assets in the consolidated balance sheets. (2) Reported in Net derivative gains (losses) in the consolidated statements of income (loss). (3) Reported in Future policy benefits and other policyholders’ liabilities in the consolidated balance sheets. (4) SCS, SIO, MSO and IUL indexed features are reported in Policyholders’ account balances in the consolidated balance sheets. |
Offsetting Financial Assets and Liabilities and Derivative Instruments | The following table presents information about the Company’s offsetting financial assets and liabilities and derivative instruments at December 31, 2018 . Offsetting of Financial Assets and Liabilities and Derivative Instruments At December 31, 2018 Gross Amount Recognized Gross Amount Offset in the Balance Sheets Net Amount Presented in the Balance Sheets (in millions) Assets: Total derivatives $ 2,946 $ 2,912 $ 34 Other financial instruments 1,520 — 1,520 Other invested assets $ 4,466 $ 2,912 $ 1,554 Securities purchased under agreement to resell $ — $ — $ — Liabilities: Total derivatives $ 3,109 $ 2,912 $ 197 Other financial liabilities 1,263 — 1,263 Other liabilities $ 4,372 $ 2,912 $ 1,460 Securities sold under agreement to repurchase (1) $ 571 $ — $ 571 ______________ (1) Excludes expense of $2 million in Securities sold under agreement to repurchase. The following table presents information about the Company’s offsetting of financial assets and liabilities and derivative instruments at September 30, 2019 . Offsetting of Financial Assets and Liabilities and Derivative Instruments At September 30, 2019 Gross Amount Recognized Gross Amount Offset in the Balance Sheets Net Amount Presented in the Balance Sheets (in millions) Assets: Total derivatives $ 5,445 $ 5,404 $ 41 Other financial instruments 1,712 — 1,712 Other invested assets $ 7,157 $ 5,404 $ 1,753 Liabilities: Total derivatives $ 5,429 $ 5,404 $ 25 Other financial liabilities 1,343 — 1,343 Other liabilities $ 6,772 $ 5,404 $ 1,368 |
Gross Collateral Amounts Not Offset in Consolidated Balance Sheets | The following table presents information about the Company’s gross collateral amounts that are not offset in the consolidated balance sheets at September 30, 2019 . Collateral Amounts Not Offset in the Consolidated Balance Sheets At September 30, 2019 Net Amount of Derivative Contracts Collateral (Received)/Held Financial Instruments Cash Net Amount (in millions) Assets: Total derivatives $ 3,488 $ 10 $ 3,437 $ 41 Other financial instruments 1,712 — — 1,712 Other invested assets $ 5,200 $ 10 $ 3,437 $ 1,753 Liabilities: Total derivatives $ 25 $ — $ — $ 25 Other financial liabilities 1,343 — — 1,343 Other liabilities $ 1,368 $ — $ — $ 1,368 The following table presents information about the Company’s gross collateral amounts that are not offset in the consolidated balance sheets at December 31, 2018 . Collateral Amounts Not Offset in the Consolidated Balance Sheets At December 31, 2018 Net Amount of Derivative Contracts Collateral (Received)/Held Financial Instruments Cash (3) Net Amount (in millions) Assets: Total derivatives $ 1,397 $ — $ (1,363 ) $ 34 Other financial instruments 1,520 — — 1,520 Other invested assets $ 2,917 $ — $ (1,363 ) $ 1,554 Securities purchased under agreement to resell $ — $ — $ — $ — Liabilities: Total derivatives $ 197 $ — $ — $ 197 Other financial liabilities 1,263 — — 1,263 Other liabilities $ 1,460 $ — $ — $ 1,460 Securities sold under agreement to repurchase (1) (2) (3) $ 571 $ (588 ) $ — $ (17 ) ______________ (1) Excludes expense of $2 million in Securities sold under agreement to repurchase. (2) U.S. Treasury and agency securities are in Fixed maturities available-for-sale on the consolidated balance sheets. (3) Cash is included in Cash and cash equivalents on consolidated balance sheets. |
Repurchase Agreements Accounted for as Secured Borrowings | The following table presents information about repurchase agreements accounted for as secured borrowings in the consolidated balance sheets at December 31, 2018 . Repurchase Agreement Accounted for as Secured Borrowings At December 31, 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 $ — $ 571 $ — $ — $ 571 Total $ — $ 571 $ — $ — $ 571 ______________ (1) Excludes expense of $2 million in Securities sold under agreement to repurchase on the consolidated balance sheets. |
CLOSED BLOCK (Tables)
CLOSED BLOCK (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Closed Block Disclosure [Abstract] | |
Summarized Financial Information for Closed Blocks | Summarized financial information for the Company’s Closed Block is as follows: September 30, 2019 December 31, 2018 (in millions) Closed Block Liabilities: Future policy benefits, policyholders’ account balances and other $ 6,558 $ 6,709 Policyholder dividend obligation 5 — Other liabilities 61 47 Total Closed Block liabilities 6,624 6,756 Assets Designated to the Closed Block: Fixed maturities, available-for-sale, at fair value (amortized cost of $3,648 and $3,680) 3,869 3,672 Mortgage loans on real estate, net of valuation allowance of $0 and $0 1,800 1,824 Policy loans 716 736 Cash and other invested assets 10 76 Other assets 167 179 Total assets designated to the Closed Block 6,562 6,487 Excess of Closed Block liabilities over assets designated to the Closed Block 62 269 Amounts included in accumulated other comprehensive income (loss): Net unrealized investment gains (losses), net of policyholders' dividend obligation $5 and $0 219 8 Maximum future earnings to be recognized from Closed Block assets and liabilities $ 281 $ 277 |
Closed Block Revenues and Expenses | The Company’s Closed Block revenues and expenses are as follows: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 (in millions) Revenues: Premiums and other income $ 42 $ 44 $ 136 $ 144 Net investment income (loss) 69 72 208 218 Investment gains (losses), net — — (1 ) 1 Total revenues 111 116 343 363 Benefits and Other Deductions: Policyholders’ benefits and dividends 108 123 343 372 Other operating costs and expenses — 1 1 3 Total benefits and other deductions 108 124 344 375 Net income (loss) before income taxes 3 (8 ) (1 ) (12 ) Income tax (expense) benefit — 2 (2 ) 2 Net income (loss) $ 3 $ (6 ) $ (3 ) $ (10 ) |
INSURANCE LIABILITIES (Tables)
INSURANCE LIABILITIES (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Insurance [Abstract] | |
GMDB and GMIB Liabilities and Other Policyholder's Liabilities | Change in Liability for Variable Annuity Contracts with GMDB Features and No NLG Feature Three and Nine Months Ended September 30, 2019 and 2018 Three Months Ended September 30, 2019 2018 Direct Ceded Direct Ceded (in millions) Beginning balance $ 4,710 $ (100 ) $ 4,124 $ (97 ) Paid guarantee benefits (102 ) 2 (91 ) 3 Other changes in reserve 159 (3 ) 485 (9 ) Ending balance $ 4,767 $ (101 ) $ 4,518 $ (103 ) Nine Months Ended September 30, 2019 2018 Direct Ceded Direct Ceded (in millions) Beginning balance $ 4,654 $ (107 ) $ 4,054 $ (2,030 ) Paid guarantee benefits (328 ) 11 (291 ) 67 Other changes in reserve 441 (5 ) 755 1,860 Ending balance $ 4,767 $ (101 ) $ 4,518 $ (103 ) Change in Liability for Variable Annuity Contracts with GMIB Features and No NLG Feature Three and Nine Months Ended September 30, 2019 and 2018 Three Months Ended September 30, 2019 2018 Direct Ceded Direct Ceded (in millions) Beginning balance $ 3,759 $ (2,196 ) $ 4,701 $ (1,825 ) Paid guarantee benefits (70 ) 20 (43 ) 1 Other changes in reserve 992 (677 ) (1,053 ) 253 Ending balance $ 4,681 $ (2,853 ) $ 3,605 $ (1,571 ) Nine Months Ended September 30, 2019 2018 Direct Ceded Direct Ceded (in millions) Beginning balance $ 3,741 $ (1,991 ) $ 4,754 $ (10,488 ) Paid guarantee benefits (182 ) 55 (108 ) 49 Other changes in reserve 1,122 (917 ) (1,041 ) 8,868 Ending balance $ 4,681 $ (2,853 ) $ 3,605 $ (1,571 ) |
Variable Annuity Contracts with GMDB and GMIB Features | Direct Variable Annuity Contracts with GMDB and GMIB Features at September 30, 2019 Guarantee Type Return of Premium Ratchet Roll-Up Combo Total (in millions, except age and interest rate) Variable annuity contracts with GMDB features Account Values invested in: General Account $ 14,483 $ 94 $ 58 $ 181 $ 14,816 Separate Accounts 46,286 8,937 3,071 32,067 90,361 Total Account Values $ 60,769 $ 9,031 $ 3,129 $ 32,248 $ 105,177 Net amount at risk, gross $ 123 $ 80 $ 1,980 $ 18,846 $ 21,029 Net amount at risk, net of amounts reinsured $ 123 $ 76 $ 1,388 $ 18,846 $ 20,433 Average attained age of policyholders (in years) 51.2 67.4 74.1 69.2 55.1 Percentage of policyholders over age 70 10.5 % 44.9 % 67.5 % 49.9 % 19.3 % Range of contractually specified interest rates N/A N/A 3% - 6% 3% - 6.5% 3% - 6.5% Variable annuity contracts with GMIB features Account Values invested in: General Account $ — $ — $ 20 $ 233 $ 253 Separate Accounts — — 22,484 34,718 57,202 Total Account Values $ — $ — $ 22,504 $ 34,951 $ 57,455 Net amount at risk, gross $ — $ — $ 981 $ 10,696 $ 11,677 Net amount at risk, net of amounts reinsured $ — $ — $ 309 $ 9,678 $ 9,987 Average attained age of policyholders (in years) N/A N/A 68.7 69.3 69.2 Weighted-average number of years remaining until annuitization N/A N/A 1.7 0.4 0.5 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 features. The investment performance of the assets impacts the related account values and, consequently, the NAR associated with the GMDB and GMIB benefits and guarantees. Because the Company’s variable annuity contracts offer both GMDB and GMIB features, GMDB and GMIB amounts are not mutually exclusive. Investment in Variable Insurance Trust Mutual Funds September 30, 2019 December 31, 2018 Mutual Fund Type GMDB GMIB GMDB GMIB (in millions) Equity $ 39,866 $ 17,056 $ 35,541 $ 15,759 Fixed income 5,277 2,748 5,173 2,812 Balanced 44,347 37,132 41,588 33,974 Other 871 266 852 290 Total $ 90,361 $ 57,202 $ 83,154 $ 52,835 |
Summary of No-Lapse Guarantee Liabilities and Other Policyholder's Liabilities | The change in the fair value of the NLG feature reflected in the General Account in Future policy benefits and other policyholders’ liabilities in the consolidated balance sheets is summarized in the table below. Three Months Ended September 30, 2019 2018 Direct Liability Reinsurance Ceded Net Direct Liability Reinsurance Ceded Net (in millions) Beginning balance $ 819 $ (755 ) $ 64 $ 716 $ (689 ) $ 27 Paid guaranteed benefits (6 ) — (6 ) (4 ) — (4 ) Other changes in reserves 52 (37 ) 15 43 (28 ) 15 Ending balance $ 865 $ (792 ) $ 73 $ 755 $ (717 ) $ 38 Nine Months Ended September 30, 2019 2018 Direct Liability Reinsurance Ceded Net Direct Liability Reinsurance Ceded Net (in millions) Beginning balance $ 787 $ (733 ) $ 54 $ 692 $ (664 ) $ 28 Paid guaranteed benefits (16 ) — (16 ) (13 ) — (13 ) Other changes in reserves 94 (59 ) 35 76 (53 ) 23 Ending balance $ 865 $ (792 ) $ 73 $ 755 $ (717 ) $ 38 |
FAIR VALUE DISCLOSURES (Tables)
FAIR VALUE DISCLOSURES (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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 September 30, 2019 and December 31, 2018 , 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 impairment or other event occurs. When such fair value measurements are recorded, they must be classified and disclosed within the fair value hierarchy. Fair Value Measurements at September 30, 2019 Level 1 Level 2 Level 3 Total (in millions) Assets: Investments: Fixed maturities, available-for-sale: Corporate (1) $ — $ 42,153 $ 1,208 $ 43,361 U.S. Treasury, government and agency — 15,724 — 15,724 States and political subdivisions — 606 39 645 Foreign governments — 517 — 517 Residential mortgage-backed (2) — 182 — 182 Asset-backed (3) — 70 532 602 Redeemable preferred stock 141 273 — 414 Total fixed maturities, available-for-sale 141 59,525 1,779 61,445 Other equity investments 13 — — 13 Trading securities 314 8,130 — 8,444 Other invested assets: Short-term investments — 437 — 437 Assets of consolidated VIEs/VOEs — — 16 16 Swaps — 839 — 839 Credit default swaps — 19 — 19 Options — 2,433 — 2,433 Swaptions — 196 — 196 Total other invested assets — 3,924 16 3,940 Cash equivalents 1,379 — — 1,379 GMIB reinsurance contract asset — — 2,853 2,853 Separate Accounts assets 115,405 2,927 358 118,690 Total Assets $ 117,252 $ 74,506 $ 5,006 $ 196,764 Liabilities: GMxB derivative features’ liability $ — $ — $ 9,363 $ 9,363 SCS, SIO, MSO and IUL indexed features’ liability — 2,178 — 2,178 Total Liabilities $ — $ 2,178 $ 9,363 $ 11,541 ______________ (1) Corporate fixed maturities includes both public and private issues. (2) Includes publicly traded agency pass-through securities and collateralized obligations. (3) Includes credit-tranched securities collateralized by sub-prime mortgages and other asset types and credit tenant loans. Fair Value Measurements at December 31, 2018 Level 1 Level 2 Level 3 Total (in millions) Assets: Investments: Fixed maturities, available-for-sale: Corporate (1) $ — $ 25,202 $ 1,174 $ 26,376 U.S. Treasury, government and agency — 13,335 — 13,335 States and political subdivisions — 416 38 454 Foreign governments — 519 — 519 Residential mortgage-backed (2) — 202 — 202 Asset-backed (3) — 71 519 590 Redeemable preferred stock 163 276 — 439 Total fixed maturities, available-for-sale 163 40,021 1,731 41,915 Other equity investments 12 — — 12 Trading securities 218 14,919 29 15,166 Other invested assets: Short-term investments — 412 — 412 Assets of consolidated VIEs/VOEs — — 19 19 Swaps — 423 — 423 Credit default swaps — 17 — 17 Options — 956 — 956 Total other invested assets — 1,808 19 1,827 Cash equivalents 2,160 — — 2,160 GMIB reinsurance contracts asset — — 1,991 1,991 Separate Accounts assets 105,159 2,733 374 108,266 Total Assets $ 107,712 $ 59,481 $ 4,144 $ 171,337 Liabilities: GMxB derivative features’ liability $ — $ — $ 5,431 $ 5,431 SCS, SIO, MSO and IUL indexed features’ liability — 687 — 687 Total Liabilities $ — $ 687 $ 5,431 $ 6,118 ______________ (1) Corporate fixed maturities includes both public and private issues. (2) Includes publicly traded agency pass-through securities and collateralized obligations. (3) 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 tables below present reconciliations for all Level 3 assets and liabilities for the three and nine months ended September 30, 2019 and 2018 . Level 3 Instruments - Fair Value Measurements Corporate State and Political Subdivisions Asset- backed (in millions) Balance, July 1, 2019 $ 1,290 $ 39 $ 534 Total gains (losses), realized and unrealized, included in: Net income (loss) as: Net investment income (loss) — — — Investment gains (losses), net — — — Subtotal — — — Other comprehensive income (loss) (7 ) 1 — Purchases (2 ) — 71 Sales (42 ) (1 ) (73 ) Transfers into Level 3 (1) — — — Transfers out of Level 3 (1) (31 ) — — Balance, September 30, 2019 $ 1,208 $ 39 $ 532 Balance, July 1, 2018 $ 1,152 $ 38 $ 538 Total gains (losses), realized and unrealized, included in: Net income (loss) as: Net investment income (loss) 3 — (1 ) Investment gains (losses), net (4 ) — — Subtotal (1 ) — (1 ) Other comprehensive income (loss) (1 ) — 1 Purchases 36 — — Sales (52 ) — (1 ) Transfers into Level 3 (1) — — — Transfers out of Level 3 (1) — — — Balance, September 30, 2018 $ 1,134 $ 38 $ 537 ______________ (1) Transfers into/out of the Level 3 classification are reflected at beginning-of-period fair values. Corporate State and Political Subdivisions Asset- backed (in millions) Balance, January 1, 2019 $ 1,174 $ 38 $ 519 Total gains (losses), realized and unrealized, included in: Net income (loss) as: Net investment income (loss) 3 — — Investment gains (losses), net — — — Subtotal 3 — — Other comprehensive income (loss) 3 3 5 Purchases 219 — 81 Sales (101 ) (2 ) (73 ) Transfers into Level 3 (1) 14 — — Transfers out of Level 3 (1) (104 ) — — Balance, September 30, 2019 $ 1,208 $ 39 $ 532 Corporate State and Political Subdivisions Asset- backed (in millions) Balance, January 1, 2018 $ 1,139 $ 40 $ 8 Total gains (losses), realized and unrealized, included in: Net income (loss) as: Net investment income (loss) 8 — (1 ) Investment gains (losses), net (4 ) — — Subtotal 4 — (1 ) Other comprehensive income (loss) (15 ) (1 ) — Purchases 236 — 533 Sales (267 ) (1 ) (3 ) Transfers into Level 3 (1) 65 — — Transfers out of Level 3 (1) (28 ) — — Balance, September 30, 2018 $ 1,134 $ 38 $ 537 ______________ (1) Transfers into/out of the Level 3 classification are reflected at beginning-of-period fair values. Other Equity Investments GMIB Reinsurance Contract Asset Separate Accounts Assets GMxB Derivative Features Liability (in millions) Balance, July 1, 2019 $ 16 $ 2,196 $ 389 $ (6,749 ) Total gains (losses), realized and unrealized, included in: Net income (loss) as: Investment gains (losses), net — — (14 ) — Net derivative gains (losses), excluding non-performance risk — 694 — (2,682 ) Non-performance risk (1) — (29 ) — 154 Subtotal — 665 (14 ) (2,528 ) Other comprehensive income (loss) — — — — Purchases (2) — 12 (4 ) (99 ) Sales (3) — (20 ) (1 ) 13 Settlements — — (1 ) — Activity related to consolidated VIEs/VOEs — — — — Transfers into Level 3 (4) — — — — Transfers out of Level 3 (4) — — (11 ) — Balance, September 30, 2019 $ 16 $ 2,853 $ 358 $ (9,363 ) Other Equity Investments GMIB Reinsurance Contract Asset Separate Accounts Assets GMxB Derivative Features Liability (in millions) Balance, July 1, 2018 $ 23 $ 1,825 $ 361 $ (3,534 ) Total gains (losses), realized and unrealized, included in: Net income (loss) as: Net investment income (loss) — — — — Investment gains (losses), net — — 6 — Net derivative gains (losses), excluding non-performance risk — (311 ) — (485 ) Non-performance risk (1) — 56 — (49 ) Subtotal — (255 ) 6 (534 ) Other comprehensive income (loss) — — — — Purchases (2) — 12 1 (96 ) Sales (3) — (11 ) — 7 Settlements — — (1 ) — Activity related to consolidated VIEs/VOEs (1 ) — — — Transfers into Level 3 (4) — — — — Transfers out of Level 3 (4) — — — — Balance, September 30, 2018 $ 22 $ 1,571 $ 367 $ (4,157 ) ______________ (1) The Company’s non-performance risk is recorded through Net derivative gains (losses). (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 the GMxB derivative features liability represents benefits paid. (4) Transfers into/out of the Level 3 classification are reflected at beginning-of-period fair values. Other Equity Investments GMIB Reinsurance Contract Asset Separate Accounts Assets GMxB Derivative Features Liability (in millions) Balance, January 1, 2019 $ 48 $ 1,991 $ 374 $ (5,431 ) Total gains (losses), realized and unrealized, included in: Net income (loss) as: Investment gains (losses), net — — (2 ) — Net derivative gains (losses), excluding non-performance risk — 859 — (3,338 ) Non-performance risk (1) — 23 — (306 ) Subtotal — 882 (2 ) (3,643 ) Other comprehensive income (loss) — — — — Purchases (2) — 35 3 (309 ) Sales (3) — (55 ) (1 ) 20 Settlements — — (4 ) — Activity related to consolidated VIEs/VOEs (3 ) — — — Transfers into Level 3 (4) — — — — Transfers out of Level 3 (4) (29 ) — (12 ) — Balance, September 30, 2019 $ 16 $ 2,853 $ 358 $ (9,363 ) Balance, January 1, 2018 $ 25 $ 10,488 $ 349 $ (4,256 ) Total gains (losses), realized and unrealized, included in: Net income (loss) as: Net investment income (loss) — — — — Investment gains (losses), net — — 19 — Net derivative gains (losses), excluding non-performance risk — (1,487 ) — 322 Non-performance risk (1) — (1 ) — 72 Subtotal — (1,488 ) 19 394 Other comprehensive income (loss) — — — — Purchases (2) — 83 4 (305 ) Sales (3) — (49 ) (1 ) 10 Settlements — (7,463 ) (4 ) — Activity related to consolidated VIEs/VOEs (3 ) — — — Transfers into Level 3 (4) 5 — — — Transfers out of Level 3 (4) (5 ) — — — Balance, September 30, 2018 $ 22 $ 1,571 $ 367 $ (4,157 ) ______________ (1) The Company’s non-performance risk is recorded through Net derivative gains (losses). (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 the GMxB derivative features liability represents benefits paid. (4) Transfers into/out of the Level 3 classification are reflected at beginning-of-period fair values. |
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 nine months ended September 30, 2019 and 2018 by category for Level 3 assets and liabilities still held at September 30, 2019 and 2018 . Change in Unrealized Gains (Losses) for Level 3 Instruments Net Income (Loss) Investment Gains (Losses), Net Net Derivative Gains (Losses) OCI (in millions) Held at September 30, 2019: Change in unrealized gains (losses): Fixed maturities, available-for-sale: Corporate $ — $ — $ 3 State and political subdivisions — — 3 Asset-backed — — 4 Subtotal — — 10 GMIB reinsurance contracts — 882 — Separate Accounts assets (1) (14 ) — — GMxB derivative features liability — (3,643 ) — Total $ (14 ) $ (2,761 ) $ 10 Held at September 30, 2018: Change in unrealized gains (losses): Fixed maturities, available-for-sale: Corporate $ — $ — $ (13 ) State and political subdivisions — — (1 ) Asset-backed — — — Subtotal — — (14 ) GMIB reinsurance contracts — (1,488 ) — Separate Accounts assets (1) 19 — — GMxB derivative features liability — 394 — Total $ 19 $ (1,094 ) $ (14 ) ______________ (1) There is an investment expense that offsets this investment gain (loss). |
Fair Value Inputs Quantitative Information | Quantitative Information about Level 3 Fair Value Measurements at September 30, 2019 Fair Valuation Significant Range Weighted Average (in millions) Assets: Investments: Fixed maturities, available-for-sale: Corporate $ 60 Matrix pricing model Spread over benchmark 15 - 580 bps 181 bps 996 Market comparable companies EBITDA multiples 3.9x - 63.3x 14.9x Separate Accounts assets 350 Third party appraisal Capitalization rate 4.4% 1 Discounted cash flow Spread over U.S. Treasury curve 253 bps Fair Valuation Significant Range Weighted Average (in millions) GMIB reinsurance contract asset 2,853 Discounted cash flow Lapse rates 0.8% - 10% Liabilities: GMIBNLG 9,206 Discounted cash flow Non-performance risk Lapse rates Withdrawal rates Annuitization rates Mortality rates (1): Ages 0 - 40 Ages 41 - 60 Ages 60 - 115 159 bps GWBL/GMWB 125 Discounted cash flow Lapse rates 0.8% - 10.0% GIB 25 Discounted cash flow Lapse rates 1.2% - 19.9% GMAB 7 Discounted cash flow Lapse rates 1.0% - 10.0% ______________ (1) Mortality rates vary by age and demographic characteristic such as gender. Mortality rate assumptions are based on a combination of company and industry experience. A mortality improvement assumption is also applied. For any given contract, mortality rates vary throughout the period over which cash flows are projected for purposes of valuating the embedded derivatives. Quantitative Information about Level 3 Fair Value Measurements at December 31, 2018 Fair Valuation Significant Range Weighted Average (in millions) Assets: Investments: Fixed maturities, available-for-sale: Corporate $ 93 Matrix pricing model Spread over benchmark 15 - 580 bps 104 bps 881 Market comparable companies EBITDA multiples 4.1x - 37.8x 12.1x Separate Accounts assets 352 Third party appraisal Capitalization rate 4.4% 1 Discounted cash flow Spread over U.S. Treasury curve 248 bps GMIB reinsurance contract asset 1,991 Discounted cash flow Lapse rates Mortality rates (1): Ages 0 - 40 Ages 41 - 60 Ages 60 - 115 1.0% - 6.27% Fair Valuation Significant Range Weighted Average (in millions) Liabilities: GMIBNLG 5,341 Discounted cash flow Non-performance risk Annuitization rates Mortality rates (1): Ages 0 - 40 Ages 41 - 60 Ages 60 - 115 189 bps GWBL/GMWB 130 Discounted cash flow Lapse rates 0.5% - 5.7% GIB (48 ) Discounted cash flow Lapse rates 0.5% - 5.7% GMAB 7 Discounted cash flow Lapse rates 1.0% - 5.7% ______________ (1) Mortality rates vary by age and demographic characteristic such as gender. Mortality rate assumptions are based on a combination of company and industry experience. A mortality improvement assumption is also applied. For any given contract, mortality rates vary throughout the period over which cash flows are projected for purposes of valuating the embedded derivatives. |
Fair Value Disclosure Financial Instruments Not Carried At Fair Value | Carrying Values and Fair Values for Financial Instruments Not Otherwise Disclosed Carrying Value Fair Value Level 1 Level 2 Level 3 Total (in millions) September 30, 2019: Mortgage loans on real estate $ 12,005 $ — $ — $ 12,274 $ 12,274 FHLBNY Funding Agreements $ 6,510 $ — $ 6,562 $ — $ 6,562 Policy loans $ 3,272 $ — $ — $ 4,246 $ 4,246 Loans to affiliates $ 600 $ — $ 613 $ — $ 613 Policyholders’ liabilities: Investment contracts $ 1,931 $ — $ — $ 2,127 $ 2,127 Separate Accounts liabilities $ 8,424 $ — $ — $ 8,424 $ 8,424 December 31, 2018: Mortgage loans on real estate $ 11,818 $ — $ — $ 11,478 $ 11,478 FHLBNY Funding Agreements $ 4,002 $ — $ 3,956 $ — $ 3,956 Policy loans $ 3,267 $ — $ — $ 3,944 $ 3,944 Loans to affiliates $ 600 $ — $ 603 $ — $ 603 Policyholders’ liabilities: Investment contracts $ 1,974 $ — $ — $ 2,015 $ 2,015 Loans from affiliates $ 572 $ — $ 572 $ — $ 572 Separate Accounts liabilities $ 7,406 $ — $ — $ 7,406 $ 7,406 |
LEASES (Tables)
LEASES (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Assets and Liabilities, Leases | Balance Sheet Classification of Operating Lease Assets and Liabilities Balance Sheet Line Item September 30, 2019 (in millions) Assets Operating lease assets Other Assets $ 333 Liabilities Operating lease liabilities Other Liabilities $ 426 |
Lease, Cost | The table below summarizes the components of lease costs for the three and nine months ended September 30, 2019 . Lease Costs Three Months Ended Nine Months Ended (in millions) Operating lease cost (1) $ 20 $ 57 Variable operating lease cost 3 8 Sublease income (5 ) (13 ) Short-term lease expense — 2 Net lease cost $ 18 $ 54 _____________ (1) Operating lease cost for the three months ended March 31, 2019 previously reported as $53 million , has been revised to $20 million to properly exclude impairments recognized prior to the adoption of ASC 842. The below table presents the Company’s weighted-average remaining operating lease term and weighted-average discount rate. Weighted Averages - Remaining Operating Lease Term and Discount Rate September 30, 2019 Weighted-average remaining operating lease term 6 years Weighted-average discount rate for operating leases 3.10 % Supplemental cash flow information related to leases was as follows: Lease Liabilities Information Nine Months Ended September 30, 2019 (in millions) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 65 Non-cash transactions: Leased assets obtained in exchange for new operating lease liabilities $ 42 |
Lessee, Operating Lease, Liability, Maturity | Maturities of lease liabilities as of September 30, 2019 are as follows: Maturities of Lease Liabilities September 30, 2019 (in millions) Operating Leases (1): 2019 $ 24 2020 95 2021 91 2022 87 2023 79 Thereafter 90 Total lease payments 466 Less: Interest (40 ) Present value of lease liabilities $ 426 |
Schedule of Future Minimum Rental Payments for Operating Leases | The following table presents the Company’s future minimum lease obligation under ASC 840 as of December 31, 2018 : December 31, 2018 Calendar Year (in millions) 2019 $ 81 2020 $ 74 2021 $ 69 2022 $ 67 2023 $ 63 Thereafter $ 66 |
EQUITY (Tables)
EQUITY (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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 September 30, 2019 and 2018 follow: September 30, 2019 2018 (in millions) Unrealized gains (losses) on investments $ 2,145 $ (845 ) Defined benefit pension plans (7 ) (4 ) Total accumulated other comprehensive income (loss) from continuing operations 2,138 (849 ) Less: Accumulated other comprehensive income (loss) attributable to discontinued operations, net of noncontrolling interest — 18 Accumulated other comprehensive income (loss) attributable to AXA Equitable $ 2,138 $ (867 ) |
Components of Accumulated Other Comprehensive Income (Loss), Net of Taxes | The components of OCI, net of taxes for the three and nine months ended September 30, 2019 and 2018 follow: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 (in millions) Change in net unrealized gains (losses) on investments: Net unrealized gains (losses) arising during the period $ 1,224 $ (438 ) $ 3,750 $ (1,770 ) (Gains) losses reclassified to Net income (loss) during the period (1) (159 ) 8 (157 ) (59 ) Net unrealized gains (losses) on investments 1,065 (430 ) 3,593 (1,829 ) Adjustments for policyholders’ liabilities, DAC, insurance liability loss recognition and other (491 ) 27 (964 ) 371 Change in unrealized gains (losses), net of adjustments (net of deferred income tax expense (benefit) of $152, $(107), $693 and $(387)) 574 (403 ) 2,629 (1,458 ) Change in defined benefit plans: Reclassification to Net income (loss) of amortization of net prior service credit included in net periodic cost — (3 ) — (8 ) Change in defined benefit plans (net of deferred income tax expense (benefit) of $0, $(1), $0 and $(2)) — (3 ) — (8 ) Total other comprehensive income (loss), net of income taxes from continuing operations 574 (406 ) 2,629 (1,466 ) Other comprehensive income (loss) from discontinued operations, net of income taxes — 3 — 1 Other comprehensive income (loss) attributable to AXA Equitable $ 574 $ (403 ) $ 2,629 $ (1,465 ) ______________ (1) See “Reclassification adjustments” in Note 3 . Reclassification amounts are presented net of income tax expense (benefit) of $(43) million , $2 million , $(42) million and $(16) million for the three and nine months ended September 30, 2019 and 2018 , respectively. |
REDEEMABLE NONCONTROLLING INT_2
REDEEMABLE NONCONTROLLING INTEREST (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Noncontrolling Interest [Abstract] | |
Redeemable Noncontrolling Interest | Three Months Ended September 30, Nine Months Ended 2019 2018 2019 2018 (in millions) Balance, beginning of period $ 42 $ 37 $ 39 $ 25 Net earnings (loss) attributable to redeemable noncontrolling interests — 2 3 — Purchase/change of redeemable noncontrolling interests 3 (1 ) 4 13 Balance, end of period $ 46 $ 38 $ 46 $ 38 |
COMMITMENT AND CONTINGENT LIA_2
COMMITMENT AND CONTINGENT LIABILITIES (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Federal Home Loan Bank, Advances | Outstanding Balance at December 31, 2018 Issued During the Period Repaid During the Period Long-term Agreements Maturing Within One Year Outstanding Balance at September 30, 2019 (in millions) Short-term funding agreements: Due in one year or less $ 1,640 $ 17,080 $ 14,570 $ 58 $ 4,208 Long-term funding agreements: Due in years two through five 1,569 — — (58 ) 1,511 Due in more than five years 781 — — — 781 Total long-term funding agreements 2,350 — — (58 ) 2,292 Total funding agreements (1) $ 3,990 $ 17,080 $ 14,570 $ — $ 6,500 ______________ (1) The $10 million and $12 million difference between the funding agreements carrying values shown in Note 7 in the Carrying Values and Fair Values for Financial Instruments Not Otherwise Disclosed table at September 30, 2019 and December 31, 2018 , respectively, reflects the remaining amortization of a hedge implemented and closed, which locked in the funding agreements’ borrowing rates. |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations | The table below presents AB’s revenues recognized in three and nine months ended September 30, 2018 , disaggregated by category: Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 (in millions) Investment management and service fees: Base fees $ 571 $ 1,700 Performance-based fees 41 83 Research services 103 324 Distribution services 104 318 Shareholder services 19 58 Other 5 16 Total investment management and service fees $ 843 $ 2,499 The following table presents the amounts related to the Net income of AB that has been reflected in Discontinued Operations: Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 (in millions) REVENUES Net derivative gains (losses) $ (6 ) $ (4 ) Net investment income (loss) 10 55 Investment management and service fees 826 2,446 Other income 3 6 Total revenues 833 2,503 BENEFITS AND OTHER DEDUCTIONS Compensation and benefits 357 1,061 Distribution-related payments 107 323 Interest expense 3 7 Other operating costs and expenses 187 547 Total benefits and other deductions 654 1,938 Income from discontinued operations, before income taxes 179 565 Income tax expense (21 ) (46 ) Net income from discontinued operations, net of taxes 158 519 Less: Net income attributable to the noncontrolling interest (127 ) (438 ) Net income from discontinued operations, net of taxes and noncontrolling interest $ 31 $ 81 |
REVISION OF PRIOR PERIOD FINA_2
REVISION OF PRIOR PERIOD FINANCIAL STATEMENTS (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
Financial Information Affected by Revisions and Change in Accounting Principle | Nine Months Ended September 30, 2018 As Pre-viously Presentation Reclassifi-cations As Adjusted Impact of Revisions As Revised (in millions) Consolidated Statement of Cash Flows: Cash flows from operating activities: Adjustments to reconcile Net income (loss) to Net cash provided by (used in) operating activities: Amortization of deferred sales commission $ 17 $ (17 ) $ — $ — $ — Amortization and depreciation (60 ) 318 258 — 258 Equity (income) loss from limited partnerships — (83 ) (83 ) — (83 ) Distribution from joint ventures and limited partnerships 63 (63 ) — — — Cash received on the recapture of captive reinsurance 1,099 — 1,099 174 1,273 Changes in: DAC (129 ) 129 — — — Capitalization of DAC — (432 ) (432 ) — (432 ) Future policy benefits (58 ) — (58 ) (541 ) (599 ) Reinsurance recoverable 20 — 20 86 106 Current and deferred income taxes (264 ) — (264 ) (400 ) (664 ) Other, net 123 146 269 179 448 Net cash provided by (used in) operating activities $ 1,614 $ (2 ) $ 1,612 $ (502 ) $ 1,110 Cash flows from investing activities: Proceeds from the sale/maturity/prepayment of: Trading account securities $ 6,913 $ — $ 6,913 $ 77 $ 6,990 Real estate joint ventures — 140 140 — 140 Short-term investments — 1,806 1,806 — 1,806 Other 344 (140 ) 204 — 204 Short-term investments — (1,530 ) (1,530 ) 204 (1,326 ) Cash settlements related to derivative instruments (584 ) — (584 ) (492 ) (1,076 ) Change in short-term investments 350 (273 ) 77 (77 ) — Other, net 305 (1 ) 304 (19 ) 285 Net cash provided by (used in) investing activities $ (2,990 ) $ 2 $ (2,988 ) $ (307 ) $ (3,295 ) Cash flows from financing activities: Policyholders’ account balances: Deposits $ 7,852 $ — $ 7,852 $ (1,668 ) $ 6,184 Withdrawals (4,014 ) — (4,014 ) 760 (3,254 ) Transfers (to) from Separate Accounts (338 ) — (338 ) 1,717 1,379 Net cash provided by (used in) financing activities $ 1,293 $ — $ 1,293 $ 809 $ 2,102 |
ORGANIZATION - Narrative (Detai
ORGANIZATION - Narrative (Details) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
AXA Equity Holdings | ||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
Ownership percentage | 39.00% | 59.00% |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES - Impact of New Accounting Pronouncements (Details) - USD ($) $ in Millions | Jan. 01, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 |
Accounting Policies [Abstract] | |||||
Operating lease assets | $ 347 | $ 333 | $ 333 | ||
Operating lease liabilities | 439 | 426 | 426 | ||
Amortization of deferred policy acquisition costs | $ 32 | $ (88) | $ 341 | $ 303 | |
Deferred Rent Credit | 58 | ||||
Operating Lease, Impairment Loss | $ 34 |
SIGNIFICANT ACCOUNTING POLICI_5
SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Variable Interest Entity [Line Items] | ||||
Amortization of deferred policy acquisition costs | $ 32 | $ (88) | $ 341 | $ 303 |
Variable Interest Entity, Not Primary Beneficiary | ||||
Variable Interest Entity [Line Items] | ||||
Variable Interest Entity, nonconsolidated net assets | 169,600 | 169,600 | ||
Variable interest, maximum loss exposure | 1,100 | 1,100 | ||
Variable interest entity, unused commitments | 865 | 865 | ||
Variable interest entity, consolidated, assets | 1,100 | 1,100 | ||
Variable Interest Entity, Primary Beneficiary | ||||
Variable Interest Entity [Line Items] | ||||
Variable interest entity, consolidated, assets | $ 33 | 33 | ||
Operating income (loss) | $ 19 |
SIGNIFICANT ACCOUNTING POLICI_6
SIGNIFICANT ACCOUNTING POLICIES - Reclassification of DAC (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Amortization of deferred policy acquisition costs | $ 32 | $ (88) | $ 341 | $ 303 |
Reclassification Of DAC | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Total reductions | (151) | (432) | ||
Amortization of deferred policy acquisition costs | 151 | 432 | ||
Reclassification Of DAC | Compensation and benefits | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Total reductions | 33 | 98 | ||
Reclassification Of DAC | Commissions | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Total reductions | 118 | 331 | ||
Reclassification Of DAC | Other operating costs and expenses | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Total reductions | $ 0 | $ 3 |
SIGNIFICANT ACCOUNTING POLICI_7
SIGNIFICANT ACCOUNTING POLICIES - Assumption Updates and Model Changes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Increase (decrease) in policy charges and fee income | $ 853 | $ 900 | $ 2,577 | $ 2,644 |
Increase (decrease) policyholders' benefits | 1,634 | 206 | 3,321 | 1,987 |
Increase (decrease) in net derivative gains (losses) | (2,075) | (3,106) | ||
Increase (decrease) in interest credited to policyholders' account balances | 280 | 259 | 837 | 754 |
Increase (decrease) in income (loss) from operations before tax | (437) | (736) | (1,109) | (3,766) |
Increase (decrease) in net income (loss) | (262) | (509) | $ (825) | $ (2,857) |
Long-term Lapses Partial Withdrawal Rates And Election Assumptions Updates [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Increase (decrease) in policy charges and fee income | (11) | (12) | ||
Increase (decrease) policyholders' benefits | 886 | (684) | ||
Increase (decrease) in net derivative gains (losses) | (548) | (1,100) | ||
Increase (decrease) in interest credited to policyholders' account balances | (14) | |||
Increase (decrease) in amortization of DAC | (77) | (165) | ||
Increase (decrease) in income (loss) from operations before tax | (1,400) | (228) | ||
Increase (decrease) in net income (loss) | $ (1,100) | $ (187) |
INVESTMENTS - Available-for-sal
INVESTMENTS - Available-for-sale Securities (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 57,475 | $ 42,492 |
Gross Unrealized Gains | 4,086 | 618 |
Gross Unrealized Losses | 116 | 1,195 |
Fair Value | 61,445 | 41,915 |
OTTI in AOCI | 0 | 2 |
Amortized Cost | ||
Subtotal | 56,305 | |
Fair Value | ||
Subtotal | 60,247 | |
September 30, 2019 | 61,445 | |
Corporate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 41,221 | 26,690 |
Gross Unrealized Gains | 2,189 | 385 |
Gross Unrealized Losses | 49 | 699 |
Fair Value | 43,361 | 26,376 |
OTTI in AOCI | 0 | 0 |
U.S. Treasury, government and agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 14,036 | 13,646 |
Gross Unrealized Gains | 1,743 | 143 |
Gross Unrealized Losses | 55 | 454 |
Fair Value | 15,724 | 13,335 |
OTTI in AOCI | 0 | 0 |
State and Political Sub-divisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 567 | 408 |
Gross Unrealized Gains | 79 | 47 |
Gross Unrealized Losses | 1 | 1 |
Fair Value | 645 | 454 |
OTTI in AOCI | 0 | 0 |
Foreign governments | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 481 | 515 |
Gross Unrealized Gains | 42 | 17 |
Gross Unrealized Losses | 6 | 13 |
Fair Value | 517 | 519 |
OTTI in AOCI | 0 | 0 |
Residential mortgage-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 170 | 193 |
Gross Unrealized Gains | 12 | 9 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 182 | 202 |
OTTI in AOCI | 0 | 0 |
Amortized Cost | ||
Without single maturity date | 170 | |
Fair Value | ||
Without single maturity date | 182 | |
Asset- backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 600 | 600 |
Gross Unrealized Gains | 4 | 1 |
Gross Unrealized Losses | 2 | 11 |
Fair Value | 602 | 590 |
OTTI in AOCI | 0 | 2 |
Amortized Cost | ||
Without single maturity date | 600 | |
Fair Value | ||
Without single maturity date | 602 | |
Redeemable preferred stock | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 400 | 440 |
Gross Unrealized Gains | 17 | 16 |
Gross Unrealized Losses | 3 | 17 |
Fair Value | 414 | 439 |
OTTI in AOCI | 0 | $ 0 |
Amortized Cost | ||
Without single maturity date | 400 | |
Fair Value | ||
Without single maturity date | 414 | |
Total Fixed Maturities | ||
Amortized Cost | ||
Due in one year or less | 3,099 | |
Due in years two through five | 13,296 | |
Due in years six through ten | 15,689 | |
Due after ten years | 24,221 | |
Fair Value | ||
Due in one year or less | 3,118 | |
Due in years two through five | 13,691 | |
Due in years six through ten | 16,769 | |
Due after ten years | $ 26,669 |
INVESTMENTS - Credit Loss Impai
INVESTMENTS - Credit Loss Impairments (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |||||
Proceeds from sales | $ 3,839 | $ 973 | $ 6,756 | $ 4,774 | |
Gross gains on sales | 207 | 6 | 224 | 140 | |
Gross losses on sales | (4) | (4) | (25) | (59) | |
Total OTTI | 0 | (4) | 0 | (4) | $ 0 |
Non-credit losses recognized in OCI | 0 | 0 | 0 | $ 0 | |
Credit losses recognized in Net income (loss) | 0 | (4) | 0 | (4) | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning of year | 13,932 | 16,946 | 12,428 | 19,492 | |
End of year | 13,251 | 14,902 | 13,251 | 14,902 | |
Accumulated Other-than-Temporary Impairment Attributable to Parent [Member] | Fixed Maturities | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning of year | (18) | (9) | (46) | (10) | |
Previously recognized impairments on securities that matured, paid, prepaid or sold | 3 | 0 | 31 | 1 | |
Recognized impairments on securities impaired to fair value this period | 0 | 0 | 0 | 0 | |
Impairments recognized this period on securities not previously impaired | 0 | (4) | 0 | (4) | |
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 | |
End of year | $ (15) | $ (13) | $ (15) | $ (13) |
INVESTMENTS - Rollforward of Ne
INVESTMENTS - Rollforward of Net Unrealized Investment Gains (Losses) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning of year | $ 13,932 | $ 16,946 | $ 12,428 | $ 19,492 |
Deferred income taxes | (152) | 107 | (693) | 387 |
End of year | 13,251 | 14,902 | 13,251 | 14,902 |
Accumulated Net Investment Gain (Loss) Attributable to Parent | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning of year | 1,582 | (371) | (468) | 679 |
Net investment gains (losses) arising during the period | 1,548 | (554) | 4,754 | (2,240) |
Included in Net income (loss) | (201) | 10 | (208) | (75) |
DAC | (291) | 72 | (864) | 398 |
Deferred income taxes | (156) | 112 | (701) | 385 |
Policyholders’ liabilities | (315) | (62) | (346) | 60 |
End of year | 2,167 | (792) | 2,167 | (792) |
Other than Temporary Impairment Losses, Investments, Portion in Other Comprehensive Loss, Net of Tax, Portion Attributable to Parent, Available-for-sale Securities | 0 | 0 | 0 | 0 |
Debt Securities, Unrealized Gain (Loss), Excluding Other-than-temporary Impairment | 2,167 | (793) | 2,167 | (793) |
Debt Securities, Unrealized Gain (Loss), With Other-than-temporary Impairment | 0 | 1 | 0 | 1 |
Accumulated Net Investment Gain (Loss) Attributable to Parent | All other | Net Unrealized Gains (Losses) on Investments | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning of year | 2,622 | (245) | (577) | 1,526 |
Net investment gains (losses) arising during the period | 1,548 | (554) | 4,754 | (2,240) |
Included in Net income (loss) | (201) | 10 | (208) | (75) |
End of year | 3,970 | (788) | 3,970 | (788) |
Other than Temporary Impairment Losses, Investments, Portion in Other Comprehensive Loss, Net of Tax, Portion Attributable to Parent, Available-for-sale Securities | 0 | 0 | 0 | |
Debt Securities, Unrealized Gain (Loss), Excluding Other-than-temporary Impairment | 3,969 | (789) | 3,969 | (789) |
Debt Securities, Unrealized Gain (Loss), With Other-than-temporary Impairment | 1 | 1 | 1 | 1 |
Accumulated Net Investment Gain (Loss) Attributable to Parent | All other | DAC | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning of year | (534) | 11 | 39 | (315) |
DAC | (291) | 72 | (864) | 398 |
End of year | (826) | 83 | (826) | 83 |
Debt Securities, Unrealized Gain (Loss), Excluding Other-than-temporary Impairment | (825) | 83 | (825) | 83 |
Debt Securities, Unrealized Gain (Loss), With Other-than-temporary Impairment | (1) | (1) | ||
Accumulated Net Investment Gain (Loss) Attributable to Parent | All other | Policyholders’ Liabilities | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning of year | (86) | (110) | (55) | (232) |
Policyholders’ liabilities | (315) | (62) | (346) | 60 |
End of year | (401) | (172) | (401) | (172) |
Debt Securities, Unrealized Gain (Loss), Excluding Other-than-temporary Impairment | (401) | (172) | (401) | (172) |
Accumulated Net Investment Gain (Loss) Attributable to Parent | All other | Deferred Income Tax Asset (Liability) | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning of year | (420) | (27) | 125 | (300) |
Deferred income taxes | (156) | 112 | (701) | 385 |
End of year | (576) | 85 | (576) | 85 |
Debt Securities, Unrealized Gain (Loss), Excluding Other-than-temporary Impairment | $ (576) | $ 85 | $ (576) | $ 85 |
INVESTMENTS - Gross Unrealized
INVESTMENTS - Gross Unrealized Losses (Details) $ in Millions | Sep. 30, 2019USD ($)security | Dec. 31, 2018USD ($)security |
Investments, Debt and Equity Securities [Abstract] | ||
Number of fixed maturities in an unrealized loss position greater than 12 months | security | 339 | 1,471 |
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less Than 12 Months, Fair Value | $ 4,341 | $ 11,832 |
Less Than 12 Months, Gross Unrealized Losses | 81 | 400 |
Greater than 12 Months, Fair Value | 766 | 9,460 |
Greater Than 12 Months, Gross Unrealized Losses | 35 | 795 |
Total, Fair Value | 5,107 | 21,292 |
Total, Gross Unrealized Losses | 116 | 1,195 |
Corporate | ||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less Than 12 Months, Fair Value | 2,489 | 8,369 |
Less Than 12 Months, Gross Unrealized Losses | 24 | 306 |
Greater than 12 Months, Fair Value | 526 | 6,161 |
Greater Than 12 Months, Gross Unrealized Losses | 25 | 393 |
Total, Fair Value | 3,015 | 14,530 |
Total, Gross Unrealized Losses | 49 | 699 |
U.S. Treasury, government and agency | ||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less Than 12 Months, Fair Value | 1,568 | 2,636 |
Less Than 12 Months, Gross Unrealized Losses | 55 | 68 |
Greater than 12 Months, Fair Value | 0 | 3,154 |
Greater Than 12 Months, Gross Unrealized Losses | 0 | 386 |
Total, Fair Value | 1,568 | 5,790 |
Total, Gross Unrealized Losses | 55 | 454 |
State and Political Sub-divisions | ||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less Than 12 Months, Fair Value | 33 | 0 |
Less Than 12 Months, Gross Unrealized Losses | 1 | 0 |
Greater than 12 Months, Fair Value | 0 | 19 |
Greater Than 12 Months, Gross Unrealized Losses | 0 | 1 |
Total, Fair Value | 33 | 19 |
Total, Gross Unrealized Losses | 1 | 1 |
Foreign governments | ||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less Than 12 Months, Fair Value | 0 | 109 |
Less Than 12 Months, Gross Unrealized Losses | 0 | 3 |
Greater than 12 Months, Fair Value | 47 | 76 |
Greater Than 12 Months, Gross Unrealized Losses | 6 | 10 |
Total, Fair Value | 47 | 185 |
Total, Gross Unrealized Losses | 6 | 13 |
Residential mortgage-backed | ||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less Than 12 Months, Fair Value | 0 | |
Less Than 12 Months, Gross Unrealized Losses | 0 | |
Greater than 12 Months, Fair Value | 13 | |
Greater Than 12 Months, Gross Unrealized Losses | 0 | |
Total, Fair Value | 13 | |
Total, Gross Unrealized Losses | 0 | |
Asset- backed | ||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less Than 12 Months, Fair Value | 251 | 558 |
Less Than 12 Months, Gross Unrealized Losses | 1 | 11 |
Greater than 12 Months, Fair Value | 143 | 6 |
Greater Than 12 Months, Gross Unrealized Losses | 1 | 0 |
Total, Fair Value | 394 | 564 |
Total, Gross Unrealized Losses | 2 | 11 |
Redeemable preferred stock | ||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less Than 12 Months, Fair Value | 0 | 160 |
Less Than 12 Months, Gross Unrealized Losses | 0 | 12 |
Greater than 12 Months, Fair Value | 50 | 31 |
Greater Than 12 Months, Gross Unrealized Losses | 3 | 5 |
Total, Fair Value | 50 | 191 |
Total, Gross Unrealized Losses | $ 3 | $ 17 |
INVESTMENTS - Narrative (Detail
INVESTMENTS - Narrative (Details) $ in Millions | Sep. 30, 2019USD ($)security | Dec. 31, 2018USD ($)security | Sep. 30, 2018USD ($) |
Debt Securities, Available-for-sale [Line Items] | |||
Number of fixed maturities in an unrealized loss position greater than 12 months | security | 339 | 1,471 | |
Securities sold under agreements to repurchase | $ 0 | $ 573 | |
Debt securities exposure in single issuer greater than stated percentage of total investments | 0.60% | ||
AOCI Unrealized gain (loss) on AFS securities | $ 21 | 30 | |
Gross unrealized losses of twelve months or more | 35 | 795 | |
Trading securities, at fair value | 8,444 | 15,166 | |
Separate account equity investment carrying value | 54 | 48 | |
Mortgage loans on real estate, valuation allowances | 0 | 7 | |
Corporate | |||
Debt Securities, Available-for-sale [Line Items] | |||
Debt securities exposure in single issuer of total investments | $ 278 | $ 210 | |
Debt securities exposure in single issuer of total investments, percent | 2.10% | 1.70% | |
Fixed Maturities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale securities, amortized cost basis | $ 57,500 | $ 42,500 | |
External Credit Rating, Non Investment Grade [Member] | Fixed Maturities | Other Than Investment Grade | |||
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale securities, amortized cost | $ 1,400 | $ 1,200 | |
Percentage of available for sale securities | 2.40% | 2.90% | |
Total Commercial Mortgage Loans | |||
Debt Securities, Available-for-sale [Line Items] | |||
Mortgage loans classified as nonaccrual | $ 0 | $ 19 | |
Mortgage loans on real estate, valuation allowances | $ 0 | $ 7 |
INVESTMENTS - Trading Securitie
INVESTMENTS - Trading Securities (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Debt Securities, Trading, Gain (Loss) [Abstract] | ||||
Net investment gains (losses) recognized during the period on securities held at the end of the period | $ 7 | $ (36) | $ 431 | $ (231) |
Net investment gains (losses) recognized on securities sold during the period | 13 | (19) | (10) | (17) |
Unrealized and realized gains (losses) on trading securities arising during the period | 20 | (55) | 421 | (248) |
Interest and dividend income from trading securities | 59 | 89 | 220 | 228 |
Net investment income (loss) from trading securities | $ 79 | $ 34 | $ 641 | $ (20) |
INVESTMENTS - Mortgage Loans (D
INVESTMENTS - Mortgage Loans (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Total Commercial Mortgage Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | $ 9,265 | $ 9,130 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Financing receivables, recorded investment, past due | 0 | 27 |
Financing receivables, recorded investment, current | 9,265 | 9,103 |
Total Financing Receivables | 9,265 | 9,130 |
Financing receivable, recorded investment, 90 days or more past due and accruing | 0 | 0 |
Total Commercial Mortgage Loans | 30-59 Days | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Financing receivables, recorded investment, past due | 0 | 0 |
Total Commercial Mortgage Loans | 60-89 Days | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Financing receivables, recorded investment, past due | 0 | 0 |
Total Commercial Mortgage Loans | 90 Days or More | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Financing receivables, recorded investment, past due | 0 | 27 |
Total 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 | 5,248 | 5,948 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 5,248 | 5,948 |
Total 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 | 1,190 | 677 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 1,190 | 677 |
Total 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 | 1,586 | 1,510 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 1,586 | 1,510 |
Total 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 | 891 | 746 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 891 | 746 |
Total 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 | 350 | 249 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 350 | 249 |
Total 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 |
Total Commercial Mortgage Loans | 0% - 50% | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 1,072 | 1,072 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 1,072 | 1,072 |
Total 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 | 794 | 780 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 794 | 780 |
Total 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 | 39 | 21 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 39 | 21 |
Total 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 | 215 | 247 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 215 | 247 |
Total 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 | 24 | 24 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 24 | 24 |
Total 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 |
Total 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 |
Total Commercial Mortgage Loans | 50% - 70% | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 7,569 | 7,186 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 7,569 | 7,186 |
Total 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 | 4,296 | 4,908 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 4,296 | 4,908 |
Total 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 | 1,041 | 656 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 1,041 | 656 |
Total 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 | 1,255 | 1,146 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 1,255 | 1,146 |
Total 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 | 769 | 325 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 769 | 325 |
Total 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 | 208 | 151 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 208 | 151 |
Total 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 |
Total Commercial Mortgage Loans | 70% - 90% | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 578 | 845 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 578 | 845 |
Total 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 | 158 | 260 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 158 | 260 |
Total 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 | 0 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 110 | 0 |
Total 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 | 70 | 117 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 70 | 117 |
Total 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 | 98 | 370 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 98 | 370 |
Total 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 | 142 | 98 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 142 | 98 |
Total 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 |
Total Commercial Mortgage Loans | 90% plus | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 46 | 27 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 46 | 27 |
Total 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 |
Total 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 |
Total 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 | 46 | 0 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 46 | 0 |
Total 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 | 27 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 0 | 27 |
Total 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 |
Total 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 |
Total Agricultural Mortgage Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 2,740 | 2,695 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Financing receivables, recorded investment, past due | 105 | 68 |
Financing receivables, recorded investment, current | 2,635 | 2,627 |
Total Financing Receivables | 2,740 | 2,695 |
Financing receivable, recorded investment, 90 days or more past due and accruing | 75 | 40 |
Total Agricultural Mortgage Loans | 30-59 Days | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Financing receivables, recorded investment, past due | 25 | 18 |
Total Agricultural Mortgage Loans | 60-89 Days | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Financing receivables, recorded investment, past due | 5 | 8 |
Total Agricultural Mortgage Loans | 90 Days or More | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Financing receivables, recorded investment, past due | 75 | 42 |
Total 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 | 397 | 394 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 397 | 394 |
Total 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 | 189 | 193 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 189 | 193 |
Total 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 | 497 | 513 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 497 | 513 |
Total 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 | 990 | 941 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 990 | 941 |
Total 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 | 590 | 572 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 590 | 572 |
Total 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 | 77 | 82 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 77 | 82 |
Total Agricultural Mortgage Loans | 0% - 50% | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 1,596 | 1,611 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 1,596 | 1,611 |
Total 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 | 291 | 282 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 291 | 282 |
Total 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 | 108 | 147 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 108 | 147 |
Total 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 | 257 | 267 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 257 | 267 |
Total 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 | 568 | 543 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 568 | 543 |
Total 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 | 327 | 321 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 327 | 321 |
Total 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 | 45 | 51 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 45 | 51 |
Total Agricultural Mortgage Loans | 50% - 70% | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 1,125 | 1,038 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 1,125 | 1,038 |
Total 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 | 106 | 112 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 106 | 112 |
Total 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 | 81 | 46 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 81 | 46 |
Total 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 | 240 | 246 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 240 | 246 |
Total 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 | 403 | 379 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 403 | 379 |
Total 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 | 263 | 224 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 263 | 224 |
Total 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 | 32 | 31 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 32 | 31 |
Total Agricultural Mortgage Loans | 70% - 90% | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 19 | 46 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 19 | 46 |
Total 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 |
Total 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 |
Total 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 |
Total 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 | 19 | 19 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 19 | 19 |
Total 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 | 27 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 0 | 27 |
Total 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 |
Total 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 |
Total 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 |
Total 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 |
Total 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 |
Total 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 |
Total 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 |
Total 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 Mortgage Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 12,005 | 11,825 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Financing receivables, recorded investment, past due | 105 | 95 |
Financing receivables, recorded investment, current | 11,900 | 11,730 |
Total Financing Receivables | 12,005 | 11,825 |
Financing receivable, recorded investment, 90 days or more past due and accruing | 75 | 40 |
Total Mortgage Loans | 30-59 Days | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Financing receivables, recorded investment, past due | 25 | 18 |
Total Mortgage Loans | 60-89 Days | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Financing receivables, recorded investment, past due | 5 | 8 |
Total Mortgage Loans | 90 Days or More | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Financing receivables, recorded investment, past due | 75 | 69 |
Total 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 | 5,645 | 6,342 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 5,645 | 6,342 |
Total 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 | 1,379 | 870 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 1,379 | 870 |
Total 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 | 2,083 | 2,023 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 2,083 | 2,023 |
Total 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 | 1,881 | 1,687 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 1,881 | 1,687 |
Total 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 | 940 | 821 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 940 | 821 |
Total 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 | 77 | 82 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 77 | 82 |
Total Mortgage Loans | 0% - 50% | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 2,668 | 2,683 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 2,668 | 2,683 |
Total 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 | 1,085 | 1,062 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 1,085 | 1,062 |
Total 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 | 147 | 168 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 147 | 168 |
Total 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 | 472 | 514 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 472 | 514 |
Total 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 | 592 | 567 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 592 | 567 |
Total 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 | 327 | 321 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 327 | 321 |
Total 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 | 45 | 51 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 45 | 51 |
Total Mortgage Loans | 50% - 70% | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 8,694 | 8,224 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 8,694 | 8,224 |
Total 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 | 4,402 | 5,020 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 4,402 | 5,020 |
Total 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 | 1,122 | 702 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 1,122 | 702 |
Total 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 | 1,495 | 1,392 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 1,495 | 1,392 |
Total 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 | 1,172 | 704 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 1,172 | 704 |
Total 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 | 471 | 375 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 471 | 375 |
Total 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 | 32 | 31 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 32 | 31 |
Total Mortgage Loans | 70% - 90% | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 597 | 891 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 597 | 891 |
Total 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 | 158 | 260 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 158 | 260 |
Total 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 | 0 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 110 | 0 |
Total 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 | 70 | 117 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 70 | 117 |
Total 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 | 117 | 389 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 117 | 389 |
Total 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 | 142 | 125 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 142 | 125 |
Total 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 |
Total Mortgage Loans | 90% plus | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 46 | 27 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 46 | 27 |
Total 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 |
Total 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 |
Total 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 | 46 | 0 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 46 | 0 |
Total 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 | 27 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Financing Receivables | 0 | 27 |
Total 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 |
Total 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 |
DERIVATIVES - Derivatives by Ca
DERIVATIVES - Derivatives by Category (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Derivatives, Fair Value [Line Items] | |||
Notional amount | $ 112,590 | $ 81,636 | |
Fair Value, Assets Derivatives | 8,296 | 4,936 | |
Net Amount Presented in the Balance Sheets | 16,969 | 9,226 | |
Gains (Losses) Reported In Net Income (Loss) | (2,075) | $ (3,102) | |
Equity Futures | |||
Derivatives, Fair Value [Line Items] | |||
Notional amount | 6,686 | 10,411 | |
Fair Value, Assets Derivatives | 0 | 0 | |
Net Amount Presented in the Balance Sheets | 0 | 0 | |
Gains (Losses) Reported In Net Income (Loss) | (967) | (489) | |
Equity Swaps | |||
Derivatives, Fair Value [Line Items] | |||
Notional amount | 9,561 | 7,697 | |
Fair Value, Assets Derivatives | 81 | 140 | |
Net Amount Presented in the Balance Sheets | 56 | 168 | |
Gains (Losses) Reported In Net Income (Loss) | (1,263) | (482) | |
Equity Option | |||
Derivatives, Fair Value [Line Items] | |||
Notional amount | 49,081 | 21,698 | |
Fair Value, Assets Derivatives | 3,946 | 2,119 | |
Net Amount Presented in the Balance Sheets | 1,513 | 1,163 | |
Gains (Losses) Reported In Net Income (Loss) | 1,241 | 674 | |
Interest Rate Swaps | |||
Derivatives, Fair Value [Line Items] | |||
Notional amount | 25,781 | 27,003 | |
Fair Value, Assets Derivatives | 1,196 | 632 | |
Net Amount Presented in the Balance Sheets | 382 | 194 | |
Gains (Losses) Reported In Net Income (Loss) | 2,844 | (1,012) | |
Interest Rate Futures | |||
Derivatives, Fair Value [Line Items] | |||
Notional amount | 15,934 | 11,448 | |
Fair Value, Assets Derivatives | 0 | 0 | |
Net Amount Presented in the Balance Sheets | 0 | 0 | |
Gains (Losses) Reported In Net Income (Loss) | 183 | 52 | |
Swaptions | |||
Derivatives, Fair Value [Line Items] | |||
Notional amount | 3,201 | ||
Fair Value, Assets Derivatives | 196 | ||
Net Amount Presented in the Balance Sheets | 0 | ||
Gains (Losses) Reported In Net Income (Loss) | 146 | ||
Credit default swaps | |||
Derivatives, Fair Value [Line Items] | |||
Notional amount | 1,232 | 1,282 | |
Fair Value, Assets Derivatives | 19 | 17 | |
Net Amount Presented in the Balance Sheets | 0 | 0 | |
Gains (Losses) Reported In Net Income (Loss) | 13 | 4 | |
Foreign Currency Contracts | |||
Derivatives, Fair Value [Line Items] | |||
Notional amount | 1,114 | 2,097 | |
Fair Value, Assets Derivatives | 5 | 27 | |
Net Amount Presented in the Balance Sheets | 5 | 14 | |
Gains (Losses) Reported In Net Income (Loss) | (13) | 59 | |
Collateral | |||
Derivatives, Fair Value [Line Items] | |||
Notional amount | 0 | 0 | |
Fair Value, Assets Derivatives | 0 | 7 | |
Net Amount Presented in the Balance Sheets | 0 | 5 | |
Gains (Losses) Reported In Net Income (Loss) | 0 | 0 | |
Margin | |||
Derivatives, Fair Value [Line Items] | |||
Notional amount | 0 | 0 | |
Fair Value, Assets Derivatives | 0 | 3 | |
Net Amount Presented in the Balance Sheets | 3,472 | 1,564 | |
Gains (Losses) Reported In Net Income (Loss) | 0 | 0 | |
GMIB Reinsurance Contracts | |||
Derivatives, Fair Value [Line Items] | |||
Notional amount | 0 | 0 | |
Fair Value, Assets Derivatives | 2,853 | 1,991 | |
Net Amount Presented in the Balance Sheets | 0 | 0 | |
Gains (Losses) Reported In Net Income (Loss) | 882 | (1,488) | |
GMxB Derivative Features’ Liability | |||
Derivatives, Fair Value [Line Items] | |||
Notional amount | 0 | 0 | |
Fair Value, Assets Derivatives | 0 | 0 | |
Net Amount Presented in the Balance Sheets | 9,363 | 5,431 | |
Gains (Losses) Reported In Net Income (Loss) | (3,643) | 394 | |
SCS, SIO, MSO and IUL Indexed Features | |||
Derivatives, Fair Value [Line Items] | |||
Notional amount | 0 | 0 | |
Fair Value, Assets Derivatives | 0 | 0 | |
Net Amount Presented in the Balance Sheets | 2,178 | $ 687 | |
Gains (Losses) Reported In Net Income (Loss) | $ (1,498) | $ (814) |
DERIVATIVES - Offsetting of Fin
DERIVATIVES - Offsetting of Financial Assets and Liabilities and Derivative Instruments (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Sep. 30, 2019 | |
Securities Sold under Agreements to Repurchase | ||
Gross Amount Recognized | $ 0 | |
Gross Amount Offset in the Balance Sheets | 0 | |
Net Amount Presented in the Balance Sheets | 0 | |
Net Amount Presented in the Balance Sheets | 573 | $ 0 |
Interest expense, securities sold under agreements to repurchase | 2 | |
Total derivatives | ||
Assets | ||
Gross Amount Recognized | 2,946 | 5,445 |
Gross Amount Offset in the Balance Sheets | 2,912 | 5,404 |
Net Amount Presented in the Balance Sheets | 34 | 41 |
Liabilities | ||
Gross Amount Recognized | 3,109 | 5,429 |
Gross Amount Offset in the Balance Sheets | 2,912 | 5,404 |
Net Amount Presented in the Balance Sheets | 197 | 25 |
Other financial instruments | ||
Assets | ||
Gross Amount Recognized | 1,520 | 1,712 |
Gross Amount Offset in the Balance Sheets | 0 | 0 |
Net Amount Presented in the Balance Sheets | 1,520 | 1,712 |
Other invested assets | ||
Assets | ||
Gross Amount Recognized | 4,466 | 7,157 |
Gross Amount Offset in the Balance Sheets | 2,912 | 5,404 |
Net Amount Presented in the Balance Sheets | 1,554 | 1,753 |
Other financial liabilities | ||
Liabilities | ||
Gross Amount Recognized | 1,263 | 1,343 |
Gross Amount Offset in the Balance Sheets | 0 | 0 |
Net Amount Presented in the Balance Sheets | 1,263 | 1,343 |
Other liabilities | ||
Liabilities | ||
Gross Amount Recognized | 4,372 | 6,772 |
Gross Amount Offset in the Balance Sheets | 2,912 | 5,404 |
Net Amount Presented in the Balance Sheets | 1,460 | $ 1,368 |
Securities sold under agreement to repurchase | ||
Securities Sold under Agreements to Repurchase | ||
Gross Amount Recognized | 571 | |
Gross Amount Offset in Balance Sheets | 0 | |
Net Amount Presented in the Balance Sheets | $ 571 |
DERIVATIVES - Collateral Amount
DERIVATIVES - Collateral Amounts Not Offset in the Consolidated Balance Sheets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Sep. 30, 2019 | |
Assets | ||
Net Amount Presented in the Balance Sheets | $ 4,936 | $ 8,296 |
Liabilities | ||
Net Amount Presented in the Balance Sheets | 9,226 | 16,969 |
Securities Sold under Agreements to Repurchase | ||
Net Amount Presented in the Balance Sheets | 573 | 0 |
Interest expense, securities sold under agreements to repurchase | 2 | |
Securities purchased under agreements to resell | 0 | |
Total derivatives | ||
Assets | ||
Net Amount Presented in the Balance Sheets | 1,397 | 3,488 |
Collateral Held, Financial Instruments | 0 | 10 |
Collateral (Received) Held, Cash | 1,363 | 3,437 |
Net Amount | 34 | 41 |
Liabilities | ||
Net Amount Presented in the Balance Sheets | 197 | 25 |
Collateral Held, Financial Instruments | 0 | 0 |
Collateral Held, Cash | 0 | 0 |
Net Amount | 197 | 25 |
Other financial instruments | ||
Assets | ||
Net Amount Presented in the Balance Sheets | 1,520 | 1,712 |
Collateral Held, Financial Instruments | 0 | 0 |
Collateral (Received) Held, Cash | 0 | 0 |
Net Amount | 1,520 | 1,712 |
Other invested assets | ||
Assets | ||
Net Amount Presented in the Balance Sheets | 2,917 | 5,200 |
Collateral Held, Financial Instruments | 0 | 10 |
Collateral (Received) Held, Cash | 1,363 | 3,437 |
Net Amount | 1,554 | 1,753 |
Other financial liabilities | ||
Liabilities | ||
Net Amount Presented in the Balance Sheets | 1,263 | 1,343 |
Collateral Held, Financial Instruments | 0 | 0 |
Collateral Held, Cash | 0 | 0 |
Net Amount | 1,263 | 1,343 |
Other liabilities | ||
Liabilities | ||
Net Amount Presented in the Balance Sheets | 1,460 | 1,368 |
Collateral Held, Financial Instruments | 0 | 0 |
Collateral Held, Cash | 0 | 0 |
Net Amount | 1,460 | $ 1,368 |
Securities sold under agreement to repurchase | ||
Securities Sold under Agreements to Repurchase | ||
Net Amount Presented in the Balance Sheets | 571 | |
Collateral Held, Financial Instruments | (588) | |
Collateral Held, Cash | 0 | |
Net Amount | (17) | |
Securities sold under agreement to repurchase | ||
Securities Sold under Agreements to Repurchase | ||
Securities purchased under agreements to resell | 0 | |
Securities purchased under agreements to resell, collateral, obligation to return securities | 0 | |
Securities purchased under agreements to resell, collateral, obligation to return cash | 0 | |
Securities purchased under agreements to resell, amount offset | $ 0 |
DERIVATIVES - Narrative (Detail
DERIVATIVES - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Derivative [Line Items] | ||
Net Amount Presented in the Balance Sheets | $ 16,969 | $ 9,226 |
Derivative, Net Liability Position, Aggregate Fair Value | 0 | 3 |
Securities Sold under Agreements to Repurchase | 0 | 573 |
US Treasury Securities | ||
Derivative [Line Items] | ||
Marketable securities | 3,900 | |
Total Return Swap | ||
Derivative [Line Items] | ||
Marketable securities | 121 | |
Collateral Contracts [Member] | ||
Derivative [Line Items] | ||
Net Amount Presented in the Balance Sheets | 3,500 | $ 1,600 |
S&P 500, Russell 1000, NASDAQ 100 and Emerging Market Indices | ||
Derivative [Line Items] | ||
Initial margin requirements | 253 | |
Us Treasury Notes Ultra Long Bonds And Euro Dollar | ||
Derivative [Line Items] | ||
Initial margin requirements | 44 | |
Euro Stoxx, FTSE100, EAFE And Topix Indices | ||
Derivative [Line Items] | ||
Initial margin requirements | $ 26 |
DERIVATIVES - Repurchase Agreem
DERIVATIVES - Repurchase Agreements (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Remaining Contractual Maturity of the Agreements | $ 571 |
Interest expense, securities sold under agreements to repurchase | 2 |
Overnight and Continuous | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Remaining Contractual Maturity of the Agreements | 0 |
Up to 30 days | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Remaining Contractual Maturity of the Agreements | 571 |
30–90 days | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Remaining Contractual Maturity of the Agreements | 0 |
Greater Than 90 days | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Remaining Contractual Maturity of the Agreements | 0 |
U.S. Treasury, government and agency | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Remaining Contractual Maturity of the Agreements | 571 |
U.S. Treasury, government and agency | Overnight and Continuous | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Remaining Contractual Maturity of the Agreements | 0 |
U.S. Treasury, government and agency | Up to 30 days | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Remaining Contractual Maturity of the Agreements | 571 |
U.S. Treasury, government and agency | 30–90 days | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Remaining Contractual Maturity of the Agreements | 0 |
U.S. Treasury, government and agency | Greater Than 90 days | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Remaining Contractual Maturity of the Agreements | $ 0 |
CLOSED BLOCK - Summarized Finan
CLOSED BLOCK - Summarized Financial Information for Closed Block (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Closed Block Liabilities: | ||
Future policy benefits, policyholders’ account balances and other | $ 6,558 | $ 6,709 |
Policyholder dividend obligation | 5 | 0 |
Other liabilities | 61 | 47 |
Total Closed Block liabilities | 6,624 | 6,756 |
Assets Designated to the Closed Block: | ||
Fixed maturities available-for-sale, at fair value (amortized cost of $3,658 and $3,680) | 3,869 | 3,672 |
Fixed maturities, available for sale, amortized cost | 3,658 | 3,680 |
Mortgage loans on real estate, net of valuation allowance of $0 and $0 | 1,800 | 1,824 |
Mortgage loan valuation allowance | 0 | 0 |
Policy loans | 716 | 736 |
Cash and other invested assets | 10 | 76 |
Other assets | 167 | 179 |
Total assets designated to the Closed Block | 6,562 | 6,487 |
Excess of Closed Block liabilities over assets designated to the Closed Block | 62 | 269 |
Amounts included in accumulated other comprehensive income (loss): | ||
Net unrealized investment gains (losses), net of policyholders' dividend obligation $5 and $0 | 219 | 8 |
Maximum future earnings to be recognized from Closed Block assets and liabilities | $ 281 | $ 277 |
CLOSED BLOCK - Revenues and Exp
CLOSED BLOCK - Revenues and Expenses (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenues: | ||||
Premiums and other income | $ 42 | $ 44 | $ 136 | $ 144 |
Net investment income (loss) | 69 | 72 | 208 | 218 |
Investment gains (losses), net | 0 | 0 | (1) | 1 |
Total revenues | 111 | 116 | 343 | 363 |
Benefits and Other Deductions: | ||||
Policyholders’ benefits and dividends | 108 | 123 | 343 | 372 |
Other operating costs and expenses | 0 | 1 | 1 | 3 |
Total benefits and other deductions | 108 | 124 | 344 | 375 |
Net income (loss) before income taxes | 3 | (8) | (1) | (12) |
Income tax (expense) benefit | 0 | 2 | (2) | 2 |
Net income (loss) | $ 3 | $ (6) | $ (3) | $ (10) |
INSURANCE LIABILITIES - GMDB Li
INSURANCE LIABILITIES - GMDB Liabilities and Other Policyholder's Liabilities (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
GMDB Direct | ||||
Direct Liability | ||||
Balance, beginning of period | $ 4,710 | $ 4,124 | $ 4,654 | $ 4,054 |
Paid guarantee benefits | (102) | (91) | (328) | (291) |
Other changes in reserves | 159 | 485 | 441 | 755 |
Balance, end of period | 4,767 | 4,518 | 4,767 | 4,518 |
GMDB | ||||
Direct Liability | ||||
Balance, beginning of period | (100) | (97) | (107) | (2,030) |
Paid guarantee benefits | 2 | 3 | 11 | 67 |
Other changes in reserve | (3) | (9) | (5) | 1,860 |
Balance, end of period | (101) | (103) | (101) | (103) |
GMIB Direct | ||||
Direct Liability | ||||
Balance, beginning of period | 3,759 | 4,701 | 3,741 | 4,754 |
Paid guarantee benefits | (70) | (43) | (182) | (108) |
Other changes in reserves | 992 | (1,053) | 1,122 | (1,041) |
Balance, end of period | 4,681 | 3,605 | 4,681 | 3,605 |
GMIB Ceded | ||||
Direct Liability | ||||
Balance, beginning of period | (2,196) | (1,825) | (1,991) | (10,488) |
Paid guarantee benefits | 20 | 1 | 55 | 49 |
Other changes in reserve | (677) | 253 | (917) | 8,868 |
Balance, end of period | $ (2,853) | $ (1,571) | $ (2,853) | $ (1,571) |
INSURANCE LIABILITIES - GMDB Re
INSURANCE LIABILITIES - GMDB Reinsurance Ceded (Details) - GMDB - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Guaranteed Minimum Death Benefit Reinsurance Ceded [Roll Forward] | ||||
Balance, beginning of year | $ 100 | $ 97 | $ 107 | $ 2,030 |
Paid guarantee benefits | 2 | 3 | 11 | 67 |
Other changes in reserve | (3) | (9) | (5) | 1,860 |
Balance, end of period | $ 101 | $ 103 | $ 101 | $ 103 |
INSURANCE LIABILITIES - Variabl
INSURANCE LIABILITIES - Variable Annuity Contracts with GMDB and GMIB Features (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
GMDB | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Account Value Invested In Separate Accounts | $ 90,361 | $ 83,154 |
Net Amount At Risk By Product And Guarantee, Account Value | 105,177 | |
GMDB | Return of Premium | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Net Amount At Risk By Product And Guarantee, Account Value | 60,769 | |
GMDB | Ratchet | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Net Amount At Risk By Product And Guarantee, Account Value | 9,031 | |
GMDB | Roll-Up | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Net Amount At Risk By Product And Guarantee, Account Value | 3,129 | |
GMDB | Combo | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Net Amount At Risk By Product And Guarantee, Account Value | 32,248 | |
GMIB | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Account Value Invested In General Account | 253 | |
Account Value Invested In Separate Accounts | 57,202 | $ 52,835 |
Net Amount At Risk By Product And Guarantee, Account Value | 57,455 | |
Net amount at risk, gross | 11,677 | |
Net amount at risk, net of amounts reinsured | $ 9,987 | |
Average attained age of policyholders (in years) | 69 years 2 months 12 days | |
Weighted-average number of years remaining until annuitization | 6 months | |
GMIB | Minimum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates | 3.00% | |
GMIB | Maximum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates | 6.50% | |
GMIB | Return of Premium | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Account Value Invested In General Account | $ 0 | |
Account Value Invested In Separate Accounts | 0 | |
Net Amount At Risk By Product And Guarantee, Account Value | 0 | |
Net amount at risk, gross | 0 | |
Net amount at risk, net of amounts reinsured | 0 | |
GMIB | Ratchet | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Account Value Invested In General Account | 0 | |
Account Value Invested In Separate Accounts | 0 | |
Net Amount At Risk By Product And Guarantee, Account Value | 0 | |
Net amount at risk, gross | 0 | |
Net amount at risk, net of amounts reinsured | 0 | |
GMIB | Roll-Up | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Account Value Invested In General Account | 20 | |
Account Value Invested In Separate Accounts | 22,484 | |
Net Amount At Risk By Product And Guarantee, Account Value | 22,504 | |
Net amount at risk, gross | 981 | |
Net amount at risk, net of amounts reinsured | $ 309 | |
Average attained age of policyholders (in years) | 68 years 8 months 12 days | |
Weighted-average number of years remaining until annuitization | 1 year 8 months 12 days | |
GMIB | Roll-Up | Minimum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates | 3.00% | |
GMIB | Roll-Up | Maximum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates | 6.00% | |
GMIB | Combo | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Account Value Invested In General Account | $ 233 | |
Account Value Invested In Separate Accounts | 34,718 | |
Net Amount At Risk By Product And Guarantee, Account Value | 34,951 | |
Net amount at risk, gross | 10,696 | |
Net amount at risk, net of amounts reinsured | $ 9,678 | |
Average attained age of policyholders (in years) | 69 years 3 months 19 days | |
Weighted-average number of years remaining until annuitization | 4 months 24 days | |
GMIB | Combo | Minimum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates | 3.00% | |
GMIB | Combo | Maximum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates | 6.50% | |
Immediate Variable Annuity | GMDB | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Account Value Invested In General Account | $ 14,816 | |
Account Value Invested In Separate Accounts | 90,361 | |
Net amount at risk, gross | 21,029 | |
Net amount at risk, net of amounts reinsured | $ 20,433 | |
Average attained age of policyholders (in years) | 55 years 1 month 6 days | |
Percentage of policyholders over age 70 | 19.30% | |
Immediate Variable Annuity | GMDB | Minimum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates | 3.00% | |
Immediate Variable Annuity | GMDB | Maximum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates | 6.50% | |
Immediate Variable Annuity | GMDB | Return of Premium | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Account Value Invested In General Account | $ 14,483 | |
Account Value Invested In Separate Accounts | 46,286 | |
Net amount at risk, gross | 123 | |
Net amount at risk, net of amounts reinsured | $ 123 | |
Average attained age of policyholders (in years) | 51 years 2 months 12 days | |
Percentage of policyholders over age 70 | 10.50% | |
Immediate Variable Annuity | GMDB | Ratchet | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Account Value Invested In General Account | $ 94 | |
Account Value Invested In Separate Accounts | 8,937 | |
Net amount at risk, gross | 80 | |
Net amount at risk, net of amounts reinsured | $ 76 | |
Average attained age of policyholders (in years) | 67 years 4 months 24 days | |
Percentage of policyholders over age 70 | 44.90% | |
Immediate Variable Annuity | GMDB | Roll-Up | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Account Value Invested In General Account | $ 58 | |
Account Value Invested In Separate Accounts | 3,071 | |
Net amount at risk, gross | 1,980 | |
Net amount at risk, net of amounts reinsured | $ 1,388 | |
Average attained age of policyholders (in years) | 74 years 1 month 6 days | |
Percentage of policyholders over age 70 | 67.50% | |
Immediate Variable Annuity | GMDB | Roll-Up | Minimum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates | 3.00% | |
Immediate Variable Annuity | GMDB | Roll-Up | Maximum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates | 6.00% | |
Immediate Variable Annuity | GMDB | Combo | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Account Value Invested In General Account | $ 181 | |
Account Value Invested In Separate Accounts | 32,067 | |
Net amount at risk, gross | 18,846 | |
Net amount at risk, net of amounts reinsured | $ 18,846 | |
Average attained age of policyholders (in years) | 69 years 2 months 12 days | |
Percentage of policyholders over age 70 | 49.90% | |
Immediate Variable Annuity | GMDB | Combo | Minimum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates | 3.00% | |
Immediate Variable Annuity | GMDB | Combo | Maximum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates | 6.50% |
INSURANCE LIABILITIES - Investm
INSURANCE LIABILITIES - Investment in Variable Insurance Trust Mutual Funds (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
GMDB | ||
Fair Value, Separate Account Investment [Line Items] | ||
Investment in Variable Insurance Trust Mutual Funds | $ 90,361 | $ 83,154 |
GMDB | Equity | ||
Fair Value, Separate Account Investment [Line Items] | ||
Investment in Variable Insurance Trust Mutual Funds | 39,866 | 35,541 |
GMDB | Fixed income | ||
Fair Value, Separate Account Investment [Line Items] | ||
Investment in Variable Insurance Trust Mutual Funds | 5,277 | 5,173 |
GMDB | Balanced | ||
Fair Value, Separate Account Investment [Line Items] | ||
Investment in Variable Insurance Trust Mutual Funds | 44,347 | 41,588 |
GMDB | Other | ||
Fair Value, Separate Account Investment [Line Items] | ||
Investment in Variable Insurance Trust Mutual Funds | 871 | 852 |
GMIB | ||
Fair Value, Separate Account Investment [Line Items] | ||
Investment in Variable Insurance Trust Mutual Funds | 57,202 | 52,835 |
GMIB | Equity | ||
Fair Value, Separate Account Investment [Line Items] | ||
Investment in Variable Insurance Trust Mutual Funds | 17,056 | 15,759 |
GMIB | Fixed income | ||
Fair Value, Separate Account Investment [Line Items] | ||
Investment in Variable Insurance Trust Mutual Funds | 2,748 | 2,812 |
GMIB | Balanced | ||
Fair Value, Separate Account Investment [Line Items] | ||
Investment in Variable Insurance Trust Mutual Funds | 37,132 | 33,974 |
GMIB | Other | ||
Fair Value, Separate Account Investment [Line Items] | ||
Investment in Variable Insurance Trust Mutual Funds | $ 266 | $ 290 |
INSURANCE LIABILITIES - Summary
INSURANCE LIABILITIES - Summary of No-Lapse Guarantee Liabilities and Other Policyholder's Liabilities (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Direct Liability | ||||
Direct Liability | ||||
Balance, beginning of period | $ 819 | $ 716 | $ 787 | $ 692 |
Paid guaranteed benefits | (6) | (4) | (16) | (13) |
Other changes in reserves | 52 | 43 | 94 | 76 |
Balance, end of period | 865 | 755 | 865 | 755 |
Reinsurance Ceded | ||||
Direct Liability | ||||
Balance, beginning of period | (755) | (689) | (733) | (664) |
Paid guaranteed benefits | 0 | 0 | 0 | 0 |
Other changes in reserves | (37) | (28) | (59) | (53) |
Balance, end of period | (792) | (717) | (792) | (717) |
Net | ||||
Direct Liability | ||||
Balance, beginning of period | 64 | 27 | 54 | 28 |
Paid guaranteed benefits | (6) | (4) | (16) | (13) |
Other changes in reserves | 15 | 15 | 35 | 23 |
Balance, end of period | $ 73 | $ 38 | $ 73 | $ 38 |
FAIR VALUE DISCLOSURES - Assets
FAIR VALUE DISCLOSURES - Assets and Liabilities Measure at Fair Value on Recurring Basis (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Assets: | ||
Fair Value | $ 61,445 | $ 41,915 |
Trading securities | 8,444 | 15,166 |
Fair Value, Measurements, Recurring | ||
Assets: | ||
Fair Value | 61,445 | 41,915 |
Other equity investments | 13 | 12 |
Trading securities | 8,444 | 15,166 |
Other invested assets | 3,940 | 1,827 |
Cash equivalents | 1,379 | 2,160 |
GMIB reinsurance contract asset | 2,853 | 1,991 |
Separate Accounts assets | 118,690 | 108,266 |
Total Assets | 196,764 | 171,337 |
Liabilities: | ||
Total Liabilities | 11,541 | 6,118 |
Fair Value, Measurements, Recurring | Level 1 | ||
Assets: | ||
Fair Value | 141 | 163 |
Other equity investments | 13 | 12 |
Trading securities | 314 | 218 |
Other invested assets | 0 | 0 |
Cash equivalents | 1,379 | 2,160 |
GMIB reinsurance contract asset | 0 | 0 |
Separate Accounts assets | 115,405 | 105,159 |
Total Assets | 117,252 | 107,712 |
Liabilities: | ||
Total Liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | ||
Assets: | ||
Fair Value | 59,525 | 40,021 |
Other equity investments | 0 | 0 |
Trading securities | 8,130 | 14,919 |
Other invested assets | 3,924 | 1,808 |
Cash equivalents | 0 | 0 |
GMIB reinsurance contract asset | 0 | 0 |
Separate Accounts assets | 2,927 | 2,733 |
Total Assets | 74,506 | 59,481 |
Liabilities: | ||
Total Liabilities | 2,178 | 687 |
Fair Value, Measurements, Recurring | Level 3 | ||
Assets: | ||
Fair Value | 1,779 | 1,731 |
Other equity investments | 0 | 0 |
Trading securities | 0 | 29 |
Other invested assets | 16 | 19 |
Cash equivalents | 0 | 0 |
GMIB reinsurance contract asset | 2,853 | 1,991 |
Separate Accounts assets | 358 | 374 |
Total Assets | 5,006 | 4,144 |
Liabilities: | ||
Total Liabilities | 9,363 | 5,431 |
Redeemable preferred stock | ||
Assets: | ||
Fair Value | 414 | 439 |
Redeemable preferred stock | Fair Value, Measurements, Recurring | ||
Assets: | ||
Fair Value | 414 | 439 |
Redeemable preferred stock | Fair Value, Measurements, Recurring | Level 1 | ||
Assets: | ||
Fair Value | 141 | 163 |
Redeemable preferred stock | Fair Value, Measurements, Recurring | Level 2 | ||
Assets: | ||
Fair Value | 273 | 276 |
Redeemable preferred stock | Fair Value, Measurements, Recurring | Level 3 | ||
Assets: | ||
Fair Value | 0 | 0 |
Asset- backed | ||
Assets: | ||
Fair Value | 602 | 590 |
Asset- backed | Fair Value, Measurements, Recurring | ||
Assets: | ||
Fair Value | 602 | 590 |
Asset- backed | Fair Value, Measurements, Recurring | Level 1 | ||
Assets: | ||
Fair Value | 0 | 0 |
Asset- backed | Fair Value, Measurements, Recurring | Level 2 | ||
Assets: | ||
Fair Value | 70 | 71 |
Asset- backed | Fair Value, Measurements, Recurring | Level 3 | ||
Assets: | ||
Fair Value | 532 | 519 |
Foreign governments | ||
Assets: | ||
Fair Value | 517 | 519 |
Foreign governments | Fair Value, Measurements, Recurring | ||
Assets: | ||
Fair Value | 517 | 519 |
Foreign governments | Fair Value, Measurements, Recurring | Level 1 | ||
Assets: | ||
Fair Value | 0 | 0 |
Foreign governments | Fair Value, Measurements, Recurring | Level 2 | ||
Assets: | ||
Fair Value | 517 | 519 |
Foreign governments | Fair Value, Measurements, Recurring | Level 3 | ||
Assets: | ||
Fair Value | 0 | 0 |
State and Political Sub-divisions | ||
Assets: | ||
Fair Value | 645 | 454 |
State and Political Sub-divisions | Fair Value, Measurements, Recurring | ||
Assets: | ||
Fair Value | 645 | 454 |
State and Political Sub-divisions | Fair Value, Measurements, Recurring | Level 1 | ||
Assets: | ||
Fair Value | 0 | 0 |
State and Political Sub-divisions | Fair Value, Measurements, Recurring | Level 2 | ||
Assets: | ||
Fair Value | 606 | 416 |
State and Political Sub-divisions | Fair Value, Measurements, Recurring | Level 3 | ||
Assets: | ||
Fair Value | 39 | 38 |
U.S. Treasury, government and agency | ||
Assets: | ||
Fair Value | 15,724 | 13,335 |
U.S. Treasury, government and agency | Fair Value, Measurements, Recurring | ||
Assets: | ||
Fair Value | 15,724 | 13,335 |
U.S. Treasury, government and agency | Fair Value, Measurements, Recurring | Level 1 | ||
Assets: | ||
Fair Value | 0 | 0 |
U.S. Treasury, government and agency | Fair Value, Measurements, Recurring | Level 2 | ||
Assets: | ||
Fair Value | 15,724 | 13,335 |
U.S. Treasury, government and agency | Fair Value, Measurements, Recurring | Level 3 | ||
Assets: | ||
Fair Value | 0 | 0 |
Public Corporate [Member] | Fair Value, Measurements, Recurring | ||
Assets: | ||
Fair Value | 43,361 | 26,376 |
Public Corporate [Member] | Fair Value, Measurements, Recurring | Level 1 | ||
Assets: | ||
Fair Value | 0 | 0 |
Public Corporate [Member] | Fair Value, Measurements, Recurring | Level 2 | ||
Assets: | ||
Fair Value | 42,153 | 25,202 |
Public Corporate [Member] | Fair Value, Measurements, Recurring | Level 3 | ||
Assets: | ||
Fair Value | 1,208 | 1,174 |
Residential Mortgage Backed Securities [Member] | ||
Assets: | ||
Fair Value | 182 | 202 |
Residential Mortgage Backed Securities [Member] | Fair Value, Measurements, Recurring | ||
Assets: | ||
Fair Value | 182 | 202 |
Residential Mortgage Backed Securities [Member] | Fair Value, Measurements, Recurring | Level 1 | ||
Assets: | ||
Fair Value | 0 | 0 |
Residential Mortgage Backed Securities [Member] | Fair Value, Measurements, Recurring | Level 2 | ||
Assets: | ||
Fair Value | 182 | 202 |
Residential Mortgage Backed Securities [Member] | Fair Value, Measurements, Recurring | Level 3 | ||
Assets: | ||
Fair Value | 0 | 0 |
Short-term investments | Fair Value, Measurements, Recurring | ||
Assets: | ||
Other invested assets | 437 | 412 |
Short-term investments | Fair Value, Measurements, Recurring | Level 1 | ||
Assets: | ||
Other invested assets | 0 | 0 |
Short-term investments | Fair Value, Measurements, Recurring | Level 2 | ||
Assets: | ||
Other invested assets | 437 | 412 |
Short-term investments | Fair Value, Measurements, Recurring | Level 3 | ||
Assets: | ||
Other invested assets | 0 | 0 |
Assets of consolidated VIEs/VOEs | Fair Value, Measurements, Recurring | ||
Assets: | ||
Other invested assets | 16 | 19 |
Assets of consolidated VIEs/VOEs | Fair Value, Measurements, Recurring | Level 1 | ||
Assets: | ||
Other invested assets | 0 | 0 |
Assets of consolidated VIEs/VOEs | Fair Value, Measurements, Recurring | Level 2 | ||
Assets: | ||
Other invested assets | 0 | 0 |
Assets of consolidated VIEs/VOEs | Fair Value, Measurements, Recurring | Level 3 | ||
Assets: | ||
Other invested assets | 16 | 19 |
Swaps | Fair Value, Measurements, Recurring | ||
Assets: | ||
Other invested assets | 839 | 423 |
Swaps | Fair Value, Measurements, Recurring | Level 1 | ||
Assets: | ||
Other invested assets | 0 | 0 |
Swaps | Fair Value, Measurements, Recurring | Level 2 | ||
Assets: | ||
Other invested assets | 839 | 423 |
Swaps | Fair Value, Measurements, Recurring | Level 3 | ||
Assets: | ||
Other invested assets | 0 | 0 |
Credit default swaps | Fair Value, Measurements, Recurring | ||
Assets: | ||
Other invested assets | 19 | 17 |
Credit default swaps | Fair Value, Measurements, Recurring | Level 1 | ||
Assets: | ||
Other invested assets | 0 | 0 |
Credit default swaps | Fair Value, Measurements, Recurring | Level 2 | ||
Assets: | ||
Other invested assets | 19 | 17 |
Credit default swaps | Fair Value, Measurements, Recurring | Level 3 | ||
Assets: | ||
Other invested assets | 0 | 0 |
Options | Fair Value, Measurements, Recurring | ||
Assets: | ||
Other invested assets | 2,433 | 956 |
Options | Fair Value, Measurements, Recurring | Level 1 | ||
Assets: | ||
Other invested assets | 0 | 0 |
Options | Fair Value, Measurements, Recurring | Level 2 | ||
Assets: | ||
Other invested assets | 2,433 | 956 |
Options | Fair Value, Measurements, Recurring | Level 3 | ||
Assets: | ||
Other invested assets | 0 | 0 |
Swaptions | Fair Value, Measurements, Recurring | ||
Assets: | ||
Other invested assets | 196 | |
Swaptions | Fair Value, Measurements, Recurring | Level 1 | ||
Assets: | ||
Other invested assets | 0 | |
Swaptions | Fair Value, Measurements, Recurring | Level 2 | ||
Assets: | ||
Other invested assets | 196 | |
Swaptions | Fair Value, Measurements, Recurring | Level 3 | ||
Assets: | ||
Other invested assets | 0 | |
GMxB derivative features’ liability | Fair Value, Measurements, Recurring | ||
Liabilities: | ||
Features’ liability | 9,363 | 5,431 |
GMxB derivative features’ liability | Fair Value, Measurements, Recurring | Level 1 | ||
Liabilities: | ||
Features’ liability | 0 | 0 |
GMxB derivative features’ liability | Fair Value, Measurements, Recurring | Level 2 | ||
Liabilities: | ||
Features’ liability | 0 | 0 |
GMxB derivative features’ liability | Fair Value, Measurements, Recurring | Level 3 | ||
Liabilities: | ||
Features’ liability | 9,363 | 5,431 |
SCS, SIO, MSO and IUL indexed features’ liability | Fair Value, Measurements, Recurring | ||
Liabilities: | ||
Features’ liability | 2,178 | 687 |
SCS, SIO, MSO and IUL indexed features’ liability | Fair Value, Measurements, Recurring | Level 1 | ||
Liabilities: | ||
Features’ liability | 0 | 0 |
SCS, SIO, MSO and IUL indexed features’ liability | Fair Value, Measurements, Recurring | Level 2 | ||
Liabilities: | ||
Features’ liability | 2,178 | 687 |
SCS, SIO, MSO and IUL indexed features’ liability | Fair Value, Measurements, Recurring | Level 3 | ||
Liabilities: | ||
Features’ liability | $ 0 | $ 0 |
FAIR VALUE DISCLOSURES - Narrat
FAIR VALUE DISCLOSURES - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Quantitative Disclosure [Line Items] | |||
Fair value adjustments on GMIB asset | $ 237 | $ 184 | |
Transfers out of Level 3 | 104 | 28 | |
Transfers into level 3 | $ 14 | $ 65 | |
Transfers out of Levels 2 and 3 to total equity (as a percent) | 0.90% | 0.60% | |
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 | $ 60 | $ 93 | |
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 | 350 | 352 | |
Fair Value, Measurements, Nonrecurring | Level 3 | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Quantitative Disclosure [Line Items] | |||
Fair Value Measurements Not Included In Quantitative Information About Level 3 Fair Value Measurements | $ 746 | $ 826 |
FAIR VALUE DISCLOSURES - Level
FAIR VALUE DISCLOSURES - Level 3 Unobservable Input Reconciliation (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Total gains (losses), realized and unrealized, included in: | ||||
Investment gains (losses), net: | $ 201 | $ (9) | $ 181 | $ 73 |
Transfers into level 3 | 14 | 65 | ||
Transfers out of Level 3 | (104) | (28) | ||
Corporate | ||||
Total gains (losses), realized and unrealized, included in: | ||||
Investment gains (losses), net: | 0 | 0 | ||
Investment gains (losses), net | 0 | 0 | ||
Other comprehensive income (loss) | 3 | (13) | ||
Corporate | Level 3 | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Opening Balance | 1,290 | 1,152 | 1,174 | 1,139 |
Total gains (losses), realized and unrealized, included in: | ||||
Investment Income, Net | 0 | 3 | 3 | 8 |
Investment gains (losses), net: | 0 | (4) | 0 | (4) |
Subtotal | 0 | (1) | 3 | 4 |
Other comprehensive income (loss) | (7) | (1) | 3 | (15) |
Purchases | (2) | 36 | 219 | 236 |
Sales | (42) | (52) | (101) | (267) |
Transfers into level 3 | 0 | 0 | 14 | 65 |
Transfers out of Level 3 | (31) | 0 | (104) | (28) |
Closing Balance | 1,208 | 1,134 | 1,208 | 1,134 |
Asset- backed | ||||
Total gains (losses), realized and unrealized, included in: | ||||
Investment gains (losses), net: | 0 | 0 | ||
Investment gains (losses), net | 0 | 0 | ||
Other comprehensive income (loss) | 4 | 0 | ||
Asset- backed | Level 3 | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Opening Balance | 534 | 538 | 519 | 8 |
Total gains (losses), realized and unrealized, included in: | ||||
Investment Income, Net | 0 | (1) | 0 | (1) |
Investment gains (losses), net: | 0 | 0 | 0 | 0 |
Subtotal | 0 | (1) | 0 | (1) |
Other comprehensive income (loss) | 0 | 1 | 5 | 0 |
Purchases | 71 | 0 | 81 | 533 |
Sales | (73) | (1) | (73) | (3) |
Transfers into level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Closing Balance | 532 | 537 | 532 | 537 |
State and Political Sub-divisions | ||||
Total gains (losses), realized and unrealized, included in: | ||||
Investment gains (losses), net: | 0 | 0 | ||
Investment gains (losses), net | 0 | 0 | ||
Other comprehensive income (loss) | 3 | (1) | ||
State and Political Sub-divisions | Level 3 | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Opening Balance | 39 | 38 | 38 | 40 |
Total gains (losses), realized and unrealized, included in: | ||||
Investment Income, Net | 0 | 0 | 0 | 0 |
Investment gains (losses), net: | 0 | 0 | 0 | 0 |
Subtotal | 0 | 0 | 0 | 0 |
Other comprehensive income (loss) | 1 | 0 | 3 | (1) |
Purchases | 0 | 0 | 0 | 0 |
Sales | (1) | 0 | (2) | (1) |
Transfers into level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Closing Balance | 39 | 38 | 39 | 38 |
Other Equity Investments | Level 3 | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Opening Balance | 16 | 23 | 48 | 25 |
Total gains (losses), realized and unrealized, included in: | ||||
Investment gains (losses), net: | 0 | 0 | 0 | 0 |
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Value Nonperformance Risk | 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 | (1) | (3) | (3) |
Transfers into level 3 | 0 | 0 | 0 | 5 |
Transfers out of Level 3 | 0 | 0 | (29) | (5) |
Closing Balance | 16 | 22 | 16 | 22 |
Fair Value Assets Measured On Recurring Basis Gain Loss Included In Reinsurance Contracts | 0 | 0 | 0 | 0 |
GMIB Reinsurance Asset | ||||
Total gains (losses), realized and unrealized, included in: | ||||
Investment gains (losses), net: | 0 | 0 | ||
Investment gains (losses), net | 882 | (1,488) | ||
Other comprehensive income (loss) | 0 | 0 | ||
GMIB Reinsurance Asset | Level 3 | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Opening Balance | 2,196 | 1,825 | 1,991 | 10,488 |
Total gains (losses), realized and unrealized, included in: | ||||
Investment gains (losses), net: | 0 | 0 | 0 | 0 |
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Value Nonperformance Risk | (29) | 56 | 23 | (1) |
Subtotal | 665 | (255) | 882 | (1,488) |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Purchases | 12 | 12 | 35 | 83 |
Sales | (20) | (11) | (55) | (49) |
Settlements | 0 | 0 | 0 | (7,463) |
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 | 2,853 | 1,571 | 2,853 | 1,571 |
Fair Value Assets Measured On Recurring Basis Gain Loss Included In Reinsurance Contracts | 694 | (311) | 859 | (1,487) |
Separate Accounts Assets | ||||
Total gains (losses), realized and unrealized, included in: | ||||
Investment gains (losses), net: | (14) | 19 | ||
Investment gains (losses), net | 0 | 0 | ||
Other comprehensive income (loss) | 0 | 0 | ||
Separate Accounts Assets | Level 3 | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Opening Balance | 389 | 361 | 374 | 349 |
Total gains (losses), realized and unrealized, included in: | ||||
Investment gains (losses), net: | (14) | 6 | (2) | 19 |
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Value Nonperformance Risk | 0 | 0 | 0 | 0 |
Subtotal | (14) | 6 | (2) | 19 |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Purchases | (4) | 1 | 3 | 4 |
Sales | (1) | 0 | (1) | (1) |
Settlements | (1) | (1) | (4) | (4) |
Activity related to consolidated VIEs | 0 | 0 | 0 | 0 |
Transfers into level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | (11) | 0 | (12) | 0 |
Closing Balance | 358 | 367 | 358 | 367 |
Fair Value Assets Measured On Recurring Basis Gain Loss Included In Reinsurance Contracts | 0 | 0 | 0 | 0 |
GMxB derivative features liability | ||||
Total gains (losses), realized and unrealized, included in: | ||||
Investment gains (losses), net: | 0 | 0 | ||
Investment gains (losses), net | (3,643) | 394 | ||
Other comprehensive income (loss) | 0 | 0 | ||
Guaranteed Income Benefit Guaranteed Withdrawal Benefit And Other Features Liability [Member] | Level 3 | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Opening Balance | (6,749) | (3,534) | (5,431) | (4,256) |
Total gains (losses), realized and unrealized, included in: | ||||
Investment gains (losses), net: | 0 | 0 | 0 | 0 |
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Value Nonperformance Risk | 154 | (49) | (306) | 72 |
Subtotal | (2,528) | (534) | (3,643) | 394 |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Purchases | (99) | (96) | (309) | (305) |
Sales | 13 | 7 | 20 | 10 |
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 | (9,363) | (4,157) | (9,363) | (4,157) |
Fair Value Assets Measured On Recurring Basis Gain Loss Included In Reinsurance Contracts | $ (2,682) | $ (485) | $ (3,338) | $ 322 |
FAIR VALUE DISCLOSURES - Unreal
FAIR VALUE DISCLOSURES - Unrealized Gains (Losses) for Level 3 Still Held (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Change in Accounting Estimate [Line Items] | ||||
Investment Gains (Losses), Net | $ 201 | $ (9) | $ 181 | $ 73 |
Corporate | ||||
Change in Accounting Estimate [Line Items] | ||||
Investment Gains (Losses), Net | 0 | 0 | ||
Net Derivative Gains (Losses) | 0 | 0 | ||
OCI | 3 | (13) | ||
States and political subdivisions | ||||
Change in Accounting Estimate [Line Items] | ||||
Investment Gains (Losses), Net | 0 | 0 | ||
Net Derivative Gains (Losses) | 0 | 0 | ||
OCI | 3 | (1) | ||
Asset-backed | ||||
Change in Accounting Estimate [Line Items] | ||||
Investment Gains (Losses), Net | 0 | 0 | ||
Net Derivative Gains (Losses) | 0 | 0 | ||
OCI | 4 | 0 | ||
Subtotal | ||||
Change in Accounting Estimate [Line Items] | ||||
Investment Gains (Losses), Net | 0 | 0 | ||
Net Derivative Gains (Losses) | 0 | 0 | ||
OCI | 10 | (14) | ||
GMIB reinsurance contracts | ||||
Change in Accounting Estimate [Line Items] | ||||
Investment Gains (Losses), Net | 0 | 0 | ||
Net Derivative Gains (Losses) | 882 | (1,488) | ||
OCI | 0 | 0 | ||
Separate Accounts Assets | ||||
Change in Accounting Estimate [Line Items] | ||||
Investment Gains (Losses), Net | (14) | 19 | ||
Net Derivative Gains (Losses) | 0 | 0 | ||
OCI | 0 | 0 | ||
GMxB derivative features liability | ||||
Change in Accounting Estimate [Line Items] | ||||
Investment Gains (Losses), Net | 0 | 0 | ||
Net Derivative Gains (Losses) | (3,643) | 394 | ||
OCI | 0 | 0 | ||
Total | ||||
Change in Accounting Estimate [Line Items] | ||||
Investment Gains (Losses), Net | (14) | 19 | ||
Net Derivative Gains (Losses) | (2,761) | (1,094) | ||
OCI | 10 | (14) | ||
Level 3 | Corporate | ||||
Change in Accounting Estimate [Line Items] | ||||
Investment Gains (Losses), Net | 0 | (4) | 0 | (4) |
OCI | (7) | (1) | 3 | (15) |
Level 3 | States and political subdivisions | ||||
Change in Accounting Estimate [Line Items] | ||||
Investment Gains (Losses), Net | 0 | 0 | 0 | 0 |
OCI | 1 | 0 | 3 | (1) |
Level 3 | Asset-backed | ||||
Change in Accounting Estimate [Line Items] | ||||
Investment Gains (Losses), Net | 0 | 0 | 0 | 0 |
OCI | 0 | 1 | 5 | 0 |
Level 3 | GMIB reinsurance contracts | ||||
Change in Accounting Estimate [Line Items] | ||||
Investment Gains (Losses), Net | 0 | 0 | 0 | 0 |
OCI | 0 | 0 | 0 | 0 |
Level 3 | Separate Accounts Assets | ||||
Change in Accounting Estimate [Line Items] | ||||
Investment Gains (Losses), Net | (14) | 6 | (2) | 19 |
OCI | $ 0 | $ 0 | $ 0 | $ 0 |
FAIR VALUE DISCLOSURES - Quanta
FAIR VALUE DISCLOSURES - Quantative Information About Level 3 (Details) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Dec. 31, 2017USD ($) | |
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||||||
Investment Gains (Losses), Net | $ 201 | $ (9) | $ 181 | $ 73 | ||||
Fair Value, Assets Derivatives | 8,296 | 8,296 | $ 4,936 | |||||
Level 3 | Corporate | Matrix pricing model | ||||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||||||
Assets, fair value | 60 | 60 | 93 | |||||
Level 3 | Corporate | Market comparable companies | ||||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||||||
Assets, fair value | 996 | $ 996 | $ 881 | |||||
Level 3 | Corporate | Minimum | Matrix pricing model | ||||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||||||
Spread over benchmark | 0.0015 | 0.0015 | ||||||
Level 3 | Corporate | Maximum | Matrix pricing model | ||||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||||||
Spread over benchmark | 0.0580 | 0.0580 | ||||||
Level 3 | Corporate | Weighted Average | Matrix pricing model | ||||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||||||
Spread over benchmark | 0.0181 | 0.0104 | ||||||
Level 3 | Separate Accounts assets | Third party appraisal | ||||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||||||
Assets, fair value | 350 | $ 350 | $ 352 | |||||
Level 3 | Separate Accounts assets | Discounted cash flow | ||||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||||||
Assets, fair value | 1 | $ 1 | $ 1 | |||||
Spread over benchmark | 0.0253 | 0.0248 | ||||||
Level 3 | GMIB reinsurance contracts | Discounted cash flow | ||||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||||||
Fair Value, Assets Derivatives | $ 2,853 | $ 2,853 | $ 1,991 | |||||
Level 3 | GMIB reinsurance contracts | Minimum | Discounted cash flow | ||||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||||||
Servicing asset, measurement input | 0.008 | 0.008 | ||||||
Servicing asset, non-performance risk | 0.0056 | 0.0056 | 0.0074 | |||||
Level 3 | GMIB reinsurance contracts | Maximum | Discounted cash flow | ||||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||||||
Servicing asset, measurement input | 0.10 | 0.10 | ||||||
Servicing asset, non-performance risk | 0.0138 | 0.0138 | 0.0159 | |||||
Level 3 | GMIBNLG | Discounted cash flow | ||||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||||||
Servicing liability, non-performance liability | 0.0159 | 0.0159 | 0.0189 | |||||
Embedded Derivative, Fair Value of Embedded Derivative Liability | $ 9,206 | $ 9,206 | $ 5,341 | |||||
Level 3 | GWBL/GMWB | Discounted cash flow | ||||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||||||
Embedded Derivative, Fair Value of Embedded Derivative Liability | 125 | 125 | 130 | |||||
Level 3 | GIB | Discounted cash flow | ||||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||||||
Embedded Derivative, Fair Value of Embedded Derivative Liability | 25 | 25 | (48) | |||||
Level 3 | GMAB | Discounted cash flow | ||||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||||||
Embedded Derivative, Fair Value of Embedded Derivative Liability | $ 7 | $ 7 | $ 7 | |||||
Withdrawal rate | Level 3 | GMIB reinsurance contracts | Minimum | Discounted cash flow | ||||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||||||
Servicing asset, measurement input | 0 | 0 | 0 | |||||
Withdrawal rate | Level 3 | GMIB reinsurance contracts | Maximum | Discounted cash flow | ||||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||||||
Servicing asset, measurement input | 0.080 | 0.080 | 0.080 | |||||
Withdrawal rate | Level 3 | GMIBNLG | Minimum | Discounted cash flow | ||||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||||||
Servicing liability, measurement input | 0.003 | 0.003 | 0 | |||||
Withdrawal rate | Level 3 | GMIBNLG | Maximum | Discounted cash flow | ||||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||||||
Servicing liability, measurement input | 0.110 | 0.110 | 0.121 | |||||
Withdrawal rate | Level 3 | GWBL/GMWB | Minimum | Discounted cash flow | ||||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||||||
Servicing liability, measurement input | 0 | 0 | 0 | |||||
Withdrawal rate | Level 3 | GWBL/GMWB | Maximum | Discounted cash flow | ||||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||||||
Servicing liability, measurement input | 0.070 | 0.070 | 0.070 | |||||
Withdrawal rate | Level 3 | GIB | Minimum | Discounted cash flow | ||||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||||||
Servicing liability, measurement input | 0 | 0 | 0 | |||||
Withdrawal rate | Level 3 | GIB | Maximum | Discounted cash flow | ||||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||||||
Servicing liability, measurement input | 0.080 | 0.080 | 0.080 | |||||
Annuitization Rate | Level 3 | GMIBNLG | Minimum | Discounted cash flow | ||||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||||||
Servicing liability, measurement input | 0 | 0 | ||||||
Annuitization Rate | Level 3 | GMIBNLG | Maximum | Discounted cash flow | ||||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||||||
Servicing liability, measurement input | 1 | 1 | ||||||
EBITDA multiple | Level 3 | Corporate | Minimum | Market comparable companies | ||||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||||||
Equity security, measurement input | 3.9 | 3.9 | 4.1 | |||||
EBITDA multiple | Level 3 | Corporate | Maximum | Market comparable companies | ||||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||||||
Equity security, measurement input | 63.3 | 63.3 | 37.8 | |||||
EBITDA multiple | Level 3 | Corporate | Weighted Average | Market comparable companies | ||||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||||||
Equity security, measurement input | 14.9 | 14.9 | 12.1 | |||||
Discount rate | Level 3 | Corporate | Minimum | Market comparable companies | ||||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||||||
Equity security, measurement input | 0.065 | 0.065 | 0.064 | |||||
Discount rate | Level 3 | Corporate | Maximum | Market comparable companies | ||||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||||||
Equity security, measurement input | 0.165 | 0.165 | 0.165 | |||||
Discount rate | Level 3 | Corporate | Weighted Average | Market comparable companies | ||||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||||||
Equity security, measurement input | 0.101 | 0.101 | 0.107 | |||||
Discount rate | Level 3 | Separate Accounts assets | Third party appraisal | ||||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||||||
Servicing asset, measurement input | 0.064 | 0.064 | 0.065 | |||||
Discount rate | Level 3 | Separate Accounts assets | Discounted cash flow | ||||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||||||
Servicing asset, measurement input | 0.043 | 0.043 | 0.051 | |||||
Cash flow multiples | Level 3 | Corporate | Minimum | Market comparable companies | ||||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||||||
Equity security, measurement input | 4.5 | 4.5 | 1.8 | |||||
Cash flow multiples | Level 3 | Corporate | Maximum | Market comparable companies | ||||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||||||
Equity security, measurement input | 54.6 | 54.6 | 18 | |||||
Cash flow multiples | Level 3 | Corporate | Weighted Average | Market comparable companies | ||||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||||||
Equity security, measurement input | 11.1 | 11.1 | 11.4 | |||||
Cap rate | Level 3 | Separate Accounts assets | Third party appraisal | ||||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||||||
Servicing asset, measurement input | 0.044 | 0.044 | 0.044 | |||||
Exit capitalization rate | Level 3 | Separate Accounts assets | Third party appraisal | ||||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||||||
Servicing asset, measurement input | 0.055 | 0.055 | 0.056 | |||||
Utilization rate | Level 3 | GMIB reinsurance contracts | Minimum | Discounted cash flow | ||||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||||||
Servicing asset, measurement input | 0 | 0 | 0 | |||||
Utilization rate | Level 3 | GMIB reinsurance contracts | Maximum | Discounted cash flow | ||||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||||||
Servicing asset, measurement input | 0.490 | 0.490 | 0.160 | |||||
Utilization rate | Level 3 | GMIBNLG | Minimum | Discounted cash flow | ||||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||||||
Servicing liability, measurement input | 0 | |||||||
Utilization rate | Level 3 | GMIBNLG | Maximum | Discounted cash flow | ||||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||||||
Servicing liability, measurement input | 1 | |||||||
Utilization rate | Level 3 | GWBL/GMWB | Discounted cash flow | ||||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||||||
Servicing liability, measurement input | 1 | 1 | 1 | |||||
Utilization rate | Level 3 | GIB | Minimum | Discounted cash flow | ||||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||||||
Servicing liability, measurement input | 0 | 0 | 0 | |||||
Utilization rate | Level 3 | GIB | Maximum | Discounted cash flow | ||||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||||||
Servicing liability, measurement input | 1 | 1 | 0.160 | |||||
Equity volatility | Level 3 | GMIB reinsurance contracts | Minimum | Discounted cash flow | ||||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||||||
Servicing asset, measurement input | 0.100 | 0.100 | 0.100 | |||||
Equity volatility | Level 3 | GMIB reinsurance contracts | Maximum | Discounted cash flow | ||||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||||||
Servicing asset, measurement input | 0.310 | 0.310 | 0.340 | |||||
Equity volatility | Level 3 | GMIBNLG | Minimum | Discounted cash flow | ||||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||||||
Servicing liability, measurement input | 0.008 | 0.008 | 0.008 | |||||
Equity volatility | Level 3 | GMIBNLG | Maximum | Discounted cash flow | ||||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||||||
Servicing liability, measurement input | 0.199 | 0.199 | 0.262 | |||||
Equity volatility | Level 3 | GWBL/GMWB | Minimum | Discounted cash flow | ||||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||||||
Servicing liability, measurement input | 0.100 | 0.100 | 0.100 | |||||
Equity volatility | Level 3 | GWBL/GMWB | Maximum | Discounted cash flow | ||||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||||||
Servicing liability, measurement input | 0.310 | 0.310 | 0.340 | |||||
Equity volatility | Level 3 | GIB | Minimum | Discounted cash flow | ||||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||||||
Servicing liability, measurement input | 0.100 | 0.100 | 0.100 | |||||
Equity volatility | Level 3 | GIB | Maximum | Discounted cash flow | ||||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||||||
Servicing liability, measurement input | 0.310 | 0.310 | 0.340 | |||||
Equity volatility | Level 3 | GMAB | Minimum | Discounted cash flow | ||||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||||||
Servicing liability, measurement input | 0.100 | 0.100 | 0.100 | |||||
Equity volatility | Level 3 | GMAB | Maximum | Discounted cash flow | ||||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||||||
Servicing liability, measurement input | 0.310 | 0.310 | 0.340 | |||||
Lapse rate | Level 3 | GMIB reinsurance contracts | Minimum | Discounted cash flow | ||||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||||||
Servicing asset, measurement input | 0.010 | |||||||
Lapse rate | Level 3 | GMIB reinsurance contracts | Maximum | Discounted cash flow | ||||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||||||
Servicing asset, measurement input | 0.0627 | |||||||
Lapse rate | Level 3 | GWBL/GMWB | Minimum | Discounted cash flow | ||||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||||||
Servicing liability, measurement input | 0.008 | 0.008 | 0.005 | |||||
Lapse rate | Level 3 | GWBL/GMWB | Maximum | Discounted cash flow | ||||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||||||
Servicing liability, measurement input | 0.100 | 0.100 | 0.057 | |||||
Lapse rate | Level 3 | GIB | Minimum | Discounted cash flow | ||||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||||||
Servicing liability, measurement input | 0.012 | 0.012 | 0.005 | |||||
Lapse rate | Level 3 | GIB | Maximum | Discounted cash flow | ||||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||||||
Servicing liability, measurement input | 0.199 | 0.199 | 0.057 | |||||
Lapse rate | Level 3 | GMAB | Minimum | Discounted cash flow | ||||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||||||
Servicing liability, measurement input | 0.010 | 0.010 | 0.010 | |||||
Lapse rate | Level 3 | GMAB | Maximum | Discounted cash flow | ||||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||||||
Servicing liability, measurement input | 0.100 | 0.100 | 0.057 | |||||
Age 0-40 | Mortality Rate | Level 3 | GMIB reinsurance contracts | Minimum | Discounted cash flow | ||||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||||||
Servicing asset, measurement input | 0.0001 | 0.0001 | 0.0001 | |||||
Age 0-40 | Mortality Rate | Level 3 | GMIB reinsurance contracts | Maximum | Discounted cash flow | ||||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||||||
Servicing asset, measurement input | 0.0018 | 0.0018 | 0.0018 | |||||
Age 0-40 | Mortality Rate | Level 3 | GMIBNLG | Minimum | Discounted cash flow | ||||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||||||
Servicing liability, measurement input | 0.0001 | 0.0001 | 0.0001 | |||||
Age 0-40 | Mortality Rate | Level 3 | GMIBNLG | Maximum | Discounted cash flow | ||||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||||||
Servicing liability, measurement input | 0.0019 | 0.0019 | 0.0019 | |||||
Age 41-60 | Mortality Rate | Level 3 | GMIB reinsurance contracts | Minimum | Discounted cash flow | ||||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||||||
Servicing asset, measurement input | 0.0007 | 0.0007 | 0.0007 | |||||
Age 41-60 | Mortality Rate | Level 3 | GMIB reinsurance contracts | Maximum | Discounted cash flow | ||||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||||||
Servicing asset, measurement input | 0.0054 | 0.0054 | 0.0054 | |||||
Age 41-60 | Mortality Rate | Level 3 | GMIBNLG | Minimum | Discounted cash flow | ||||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||||||
Servicing liability, measurement input | 0.0006 | 0.0006 | 0.0006 | |||||
Age 41-60 | Mortality Rate | Level 3 | GMIBNLG | Maximum | Discounted cash flow | ||||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||||||
Servicing liability, measurement input | 0.0053 | 0.0053 | 0.0053 | |||||
Age 61-115 | Mortality Rate | Level 3 | GMIB reinsurance contracts | Minimum | Discounted cash flow | ||||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||||||
Servicing asset, measurement input | 0.0042 | 0.0042 | 0.0042 | |||||
Age 61-115 | Mortality Rate | Level 3 | GMIB reinsurance contracts | Maximum | Discounted cash flow | ||||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||||||
Servicing asset, measurement input | 0.420 | 0.420 | 0.420 | |||||
Age 61-115 | Mortality Rate | Level 3 | GMIBNLG | Minimum | Discounted cash flow | ||||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||||||
Servicing liability, measurement input | 0.0041 | 0.0041 | 0.0041 | |||||
Age 61-115 | Mortality Rate | Level 3 | GMIBNLG | Maximum | Discounted cash flow | ||||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||||||
Servicing liability, measurement input | 0.412 | 0.412 | 0.412 | |||||
GMxB derivative features liability | ||||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||||||
Investment Gains (Losses), Net | $ 0 | 0 | ||||||
Net Derivative Gains (Losses) | (3,643) | 394 | ||||||
OCI | 0 | 0 | ||||||
Separate Accounts assets | ||||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||||||
Investment Gains (Losses), Net | (14) | 19 | ||||||
Net Derivative Gains (Losses) | 0 | 0 | ||||||
OCI | 0 | 0 | ||||||
Separate Accounts assets | Level 3 | ||||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||||||
Investment Gains (Losses), Net | $ (14) | 6 | (2) | 19 | ||||
OCI | 0 | 0 | 0 | 0 | ||||
Assets, fair value | 358 | 367 | 358 | 367 | $ 374 | $ 389 | $ 361 | $ 349 |
State and Political Sub-divisions | ||||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||||||
Investment Gains (Losses), Net | 0 | 0 | ||||||
Net Derivative Gains (Losses) | 0 | 0 | ||||||
OCI | 3 | (1) | ||||||
State and Political Sub-divisions | Level 3 | ||||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||||||
Investment Gains (Losses), Net | 0 | 0 | 0 | 0 | ||||
OCI | 1 | 0 | 3 | (1) | ||||
Assets, fair value | 39 | 38 | 39 | 38 | 38 | 39 | 38 | 40 |
Corporate | ||||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||||||
Investment Gains (Losses), Net | 0 | 0 | ||||||
Net Derivative Gains (Losses) | 0 | 0 | ||||||
OCI | 3 | (13) | ||||||
Corporate | Level 3 | ||||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||||||
Investment Gains (Losses), Net | 0 | (4) | 0 | (4) | ||||
OCI | (7) | (1) | 3 | (15) | ||||
Assets, fair value | 1,208 | 1,134 | 1,208 | 1,134 | 1,174 | 1,290 | 1,152 | 1,139 |
Subtotal | ||||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||||||
Investment Gains (Losses), Net | 0 | 0 | ||||||
Net Derivative Gains (Losses) | 0 | 0 | ||||||
OCI | 10 | (14) | ||||||
GMIB reinsurance contracts | ||||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||||||
Investment Gains (Losses), Net | 0 | 0 | ||||||
Net Derivative Gains (Losses) | 882 | (1,488) | ||||||
OCI | 0 | 0 | ||||||
GMIB reinsurance contracts | Level 3 | ||||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||||||
Investment Gains (Losses), Net | 0 | 0 | 0 | 0 | ||||
OCI | 0 | 0 | 0 | 0 | ||||
Assets, fair value | $ 2,853 | $ 1,571 | 2,853 | 1,571 | $ 1,991 | $ 2,196 | $ 1,825 | $ 10,488 |
Total | ||||||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||||||
Investment Gains (Losses), Net | (14) | 19 | ||||||
Net Derivative Gains (Losses) | (2,761) | (1,094) | ||||||
OCI | $ 10 | $ (14) |
FAIR VALUE DISCLOSURES - Carryi
FAIR VALUE DISCLOSURES - Carrying Values and Fair Values of Financial Instruments (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Mortgage loans on real estate | $ 12,005 | $ 11,818 |
Loans to affiliates | 600 | 600 |
Policyholders’ liabilities: Investment contracts | 53,060 | 46,403 |
Policy loans | 3,272 | 3,267 |
Loans from affiliates | 0 | 572 |
Separate Accounts liabilities | 118,907 | 108,487 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Mortgage loans on real estate | 12,005 | 11,818 |
FHLBNY Funding Agreements | 6,510 | 4,002 |
Loans to affiliates | 600 | 600 |
Policyholders’ liabilities: Investment contracts | 1,931 | 1,974 |
Policy loans | 3,272 | 3,267 |
Loans from affiliates | 572 | |
Separate Accounts liabilities | 8,424 | 7,406 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Mortgage loans on real estate | 12,274 | 11,478 |
FHLBNY Funding Agreements | 6,562 | 3,956 |
Loans to affiliates | 613 | 603 |
Policyholders’ liabilities: Investment contracts | 2,127 | 2,015 |
Policy loans | 4,246 | 3,944 |
Loans from affiliates | 572 | |
Separate Accounts liabilities | 8,424 | 7,406 |
Fair Value | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Mortgage loans on real estate | 0 | 0 |
FHLBNY Funding Agreements | 0 | 0 |
Loans to affiliates | 0 | 0 |
Policyholders’ liabilities: Investment contracts | 0 | 0 |
Policy loans | 0 | 0 |
Loans from affiliates | 0 | |
Separate Accounts liabilities | 0 | 0 |
Fair Value | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Mortgage loans on real estate | 0 | 0 |
FHLBNY Funding Agreements | 6,562 | 3,956 |
Loans to affiliates | 613 | 603 |
Policyholders’ liabilities: Investment contracts | 0 | 0 |
Policy loans | 0 | 0 |
Loans from affiliates | 572 | |
Separate Accounts liabilities | 0 | 0 |
Fair Value | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Mortgage loans on real estate | 12,274 | 11,478 |
FHLBNY Funding Agreements | 0 | 0 |
Loans to affiliates | 0 | 0 |
Policyholders’ liabilities: Investment contracts | 2,127 | 2,015 |
Policy loans | 4,246 | 3,944 |
Loans from affiliates | 0 | |
Separate Accounts liabilities | $ 8,424 | $ 7,406 |
LEASES - Balance Sheet Classifi
LEASES - Balance Sheet Classification (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Jan. 01, 2019 |
Leases [Abstract] | ||
Operating lease assets | $ 333 | $ 347 |
Operating lease liabilities | $ 426 | $ 439 |
LEASES - Lease Costs (Details)
LEASES - Lease Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2019 | |
Lessee, Lease, Description [Line Items] | |||
Operating lease cost | $ 20 | $ 20 | $ 57 |
Variable operating lease cost | 3 | 8 | |
Sublease income | (5) | (13) | |
Short-term lease expense | 0 | 2 | |
Net lease cost | $ 18 | $ 54 | |
As Previously Reported | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease cost | $ 53 |
LEASES - Lease Maturities (Deta
LEASES - Lease Maturities (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Operating Leases: | |||
2019 | $ 24 | ||
2020 | 95 | ||
2021 | 91 | ||
2022 | 87 | ||
2023 | 79 | ||
Thereafter | 90 | ||
Total lease payments | 466 | ||
Less: Interest | (40) | ||
Present value of lease liabilities | $ 426 | $ 439 | |
Lease obligation under ASC 840 | |||
2019 | $ 81 | ||
2020 | 74 | ||
2021 | 69 | ||
2022 | 67 | ||
2023 | 63 | ||
Thereafter | $ 66 |
LEASES - Supplemental Lease Inf
LEASES - Supplemental Lease Information (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Leases [Abstract] | |
Weighted-average remaining operating lease term | 6 years |
Weighted-average discount rate for operating leases | 3.10% |
Operating cash flows from operating leases | $ 65 |
Leased assets obtained in exchange for new operating lease liabilities | $ 42 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | |
Lessee, Lease, Description [Line Items] | |||
Leases not yet commenced, amount | $ 11 | ||
Weighted-average remaining operating lease term | 6 years | ||
Operating lease liabilities | $ 426 | $ 439 | |
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Remaining lease term | 1 year | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Remaining lease term | 12 years | ||
Operating leases not yet commenced, term | 10 years |
RELATED PARTY TRANSACTIONS - Na
RELATED PARTY TRANSACTIONS - Narrative (Details) - USD ($) $ in Millions | Mar. 05, 2019 | Dec. 28, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 |
Related Party Transaction [Line Items] | |||||||
Investment commitment amount | $ 0 | $ 0 | $ 572 | ||||
Senior Surplus Notes | |||||||
Related Party Transaction [Line Items] | |||||||
Extraordinary cash dividend | $ 572 | ||||||
Related party transaction, rate (as a percent) | 3.75% | ||||||
Related party expense | $ 4 | ||||||
AllianceBernstein | Affiliated Entity | |||||||
Related Party Transaction [Line Items] | |||||||
Related party expense | 25 | $ 23 | 76 | $ 65 | |||
AXA REIM | |||||||
Related Party Transaction [Line Items] | |||||||
Investment commitment amount | $ 15 | $ 15 |
EQUITY - Cumulative Gains (Loss
EQUITY - Cumulative Gains (Losses) (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Defined benefit pension plans | $ (7) | $ (4) | ||||
Accumulated other comprehensive income | 13,251 | $ 13,932 | $ 12,428 | 14,902 | $ 16,946 | $ 19,492 |
Less: Accumulated other comprehensive income (loss) attributable to discontinued operations, net of noncontrolling interest | 0 | 18 | ||||
Unrealized gains (losses) on investments | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Unrealized gains (losses) on investments | 2,145 | (845) | ||||
Total accumulated other comprehensive income (loss) from continuing operations | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Accumulated other comprehensive income | 2,138 | (849) | ||||
Accumulated other comprehensive income (loss) attributable to AXA Equitable | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Accumulated other comprehensive income | $ 2,138 | $ 1,564 | $ (491) | $ (867) | $ (464) | $ 598 |
EQUITY - Components of OCI, Net
EQUITY - Components of OCI, Net of Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||
Net unrealized gains (losses) arising during the period | $ 1,224 | $ (438) | $ 3,750 | $ (1,770) |
(Gains) losses reclassified into net income (loss) during the period | (159) | 8 | (157) | (59) |
Net unrealized gains (losses) on investments | 1,065 | (430) | 3,593 | (1,829) |
Adjustments for policyholders’ liabilities, DAC, insurance liability loss recognition and other | 491 | (27) | 964 | (371) |
Less: Reclassification adjustments to Net income (loss) for: | 574 | (403) | 2,629 | (1,458) |
Reclassification to Net income (loss) of amortization of net prior service credit included in net periodic cost | 0 | (3) | 0 | (8) |
Changes in defined benefit plan related items not yet recognized in periodic benefit cost, net of reclassification adjustment | 0 | (3) | 0 | (8) |
Total other comprehensive income (loss), net of income taxes from continuing operations | 574 | (406) | 2,629 | (1,466) |
Other comprehensive income (loss) from discontinued operations | 0 | 3 | 0 | 1 |
Other comprehensive income (loss) attributable to AXA Equitable | 574 | (403) | 2,629 | (1,465) |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Change in unrealized gains (losses), net of adjustments, tax | 152 | (107) | 693 | (387) |
Change in defined benefit plans, tax | 0 | (1) | 0 | (2) |
Net unrealized gains (losses) on investments | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Reclassification from AOCI, current period, tax | $ (43) | $ (42) | $ 2 | $ (16) |
REDEEMABLE NONCONTROLLING INT_3
REDEEMABLE NONCONTROLLING INTEREST - Summary of Redeemable Noncontrolling Interest (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ||||
Net (income) loss attributable to the noncontrolling interest | $ 0 | $ 2 | $ 3 | $ 1 |
Redeemable Noncontrolling Interest | ||||
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ||||
Balance, beginning of period | 42 | 37 | 39 | 25 |
Net (income) loss attributable to the noncontrolling interest | 0 | 2 | 3 | 0 |
Purchase/change of redeemable noncontrolling interests | 3 | (1) | 4 | 13 |
Balance, end of period | $ 46 | $ 38 | $ 46 | $ 38 |
COMMITMENT AND CONTINGENT LIA_3
COMMITMENT AND CONTINGENT LIABILITIES - Obligations Under Funding Agreements (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Restructuring Cost and Reserve [Line Items] | ||
Unaccrued amounts of reasonably possible range of losses | $ 100 | |
Advances from Federal Home Loan Banks | 6,500 | $ 3,990 |
Issued During the Period | 17,080 | |
Repaid During the Period | 14,570 | |
Long-term Agreements Maturing Within One Year | 0 | |
Funding Agreement, Difference Related To Remaining Amortization | 10 | 12 |
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 | 4,208 | 1,640 |
Issued During the Period | 17,080 | |
Repaid During the Period | 14,570 | |
Long-term Agreements Maturing Within One Year | 58 | |
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 | 1,511 | 1,569 |
Issued During the Period | 0 | |
Repaid During the Period | 0 | |
Long-term Agreements Maturing Within One Year | (58) | |
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 | 781 |
Issued During the Period | 0 | |
Repaid During the Period | 0 | |
Federal Home Loan Bank of New York Long-Term Funding Agreements | ||
Restructuring Cost and Reserve [Line Items] | ||
Advances from Federal Home Loan Banks | 2,292 | $ 2,350 |
Issued During the Period | 0 | |
Repaid During the Period | 0 | |
Long-term Agreements Maturing Within One Year | $ (58) |
COMMITMENT AND CONTINGENT LIA_4
COMMITMENT AND CONTINGENT LIABILITIES - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Feb. 29, 2016 |
Loss Contingencies [Line Items] | ||
Unaccrued amounts of reasonably possible range of losses | $ 100 | |
AXA | ||
Loss Contingencies [Line Items] | ||
Equity commitment | 876 | |
Mortgage loans on real estate | 179 | |
Affiliated Entity | AXA | ||
Loss Contingencies [Line Items] | ||
Equity commitment | 246 | |
Letter of Credit | ||
Loss Contingencies [Line Items] | ||
Remaining borrowing capacity | $ 17 | |
Brach Family Foundation Litigation | ||
Loss Contingencies [Line Items] | ||
Liability for Future Policy Benefits, Face Value Of Policy | $ 1 |
DISCONTINUED OPERATIONS - Trans
DISCONTINUED OPERATIONS - Transactions Prior to Distribution (Details) - Alliance Bernstein - Discontinued Operations - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2018 | Sep. 30, 2018 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Total investment management and service fees | $ 843 | $ 2,499 |
Base fees | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Total investment management and service fees | 571 | 1,700 |
Performance-based fees | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Total investment management and service fees | 41 | 83 |
Research services | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Total investment management and service fees | 103 | 324 |
Distribution services | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Total investment management and service fees | 104 | 318 |
Shareholder services | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Total investment management and service fees | 19 | 58 |
Other | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Total investment management and service fees | $ 5 | $ 16 |
DISCONTINUED OPERATIONS - Incom
DISCONTINUED OPERATIONS - Income Statement Disclosures (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Net derivative gains (losses) | $ (2,075) | $ (3,106) | ||
Net investment income (loss) | $ 744 | $ 642 | 2,527 | 1,693 |
Investment management and service fees | 258 | 267 | 761 | 781 |
Other income | 0 | 10 | 40 | 41 |
Total revenues | 1,946 | 27 | 4,707 | 2,787 |
Compensation and benefits | 70 | 77 | 237 | 300 |
Distribution-related payments | 153 | 146 | 462 | 465 |
Interest expense | 0 | 9 | 4 | 27 |
Other operating costs and expenses | 214 | 154 | 614 | 2,717 |
Total benefits and other deductions | 2,383 | 763 | 5,816 | 6,553 |
Net income from discontinued operations, net of taxes | 0 | 31 | 0 | 81 |
Less: Net income attributable to the noncontrolling interest | 0 | (2) | (3) | (1) |
Net income (loss) attributable to AXA Equitable | $ (262) | (511) | $ (828) | (2,858) |
Alliance Bernstein | Discontinued Operations | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Net derivative gains (losses) | (6) | (4) | ||
Net investment income (loss) | 10 | 55 | ||
Investment management and service fees | 826 | 2,446 | ||
Other income | 3 | 6 | ||
Total revenues | 833 | 2,503 | ||
Compensation and benefits | 357 | 1,061 | ||
Distribution-related payments | 107 | 323 | ||
Interest expense | 3 | 7 | ||
Other operating costs and expenses | 187 | 547 | ||
Total benefits and other deductions | 654 | 1,938 | ||
Income from discontinued operations, before income taxes | 179 | 565 | ||
Income tax expense | (21) | (46) | ||
Net income from discontinued operations, net of taxes | 158 | 519 | ||
Less: Net income attributable to the noncontrolling interest | (127) | (438) | ||
Net income (loss) attributable to AXA Equitable | $ 31 | $ 81 |
REVISION OF PRIOR PERIOD FINA_3
REVISION OF PRIOR PERIOD FINANCIAL STATEMENTS - Cash Flow Disclosures (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | ||
Adjustments to reconcile Net income (loss) to Net cash provided by (used in) operating activities: | |||
Amortization of deferred sales commission | $ 0 | ||
Amortization and depreciation | [1] | $ 267 | 258 |
Equity (income) loss from limited partnerships | [1] | (63) | (83) |
Distribution from joint ventures and limited partnerships | 0 | ||
Cash received on the recapture of captive reinsurance | 0 | 1,273 | |
Changes in: | |||
Capitalization of DAC | [1] | (466) | (432) |
Future policy benefits | 1,035 | (599) | |
Reinsurance recoverable | 106 | ||
Current and deferred income taxes | (81) | (664) | |
Other, net | (215) | 448 | |
Net cash provided by (used in) operating activities | (712) | 1,110 | |
Proceeds from the sale/maturity/prepayment of: | |||
Trading account securities | 8,216 | 6,990 | |
Real estate joint ventures | 3 | 140 | |
Short-term investments | [1] | 1,916 | 1,806 |
Other | 204 | ||
Payment for the purchase/origination of: | |||
Short-term investments | [1] | (2,134) | (1,326) |
Cash settlements related to derivative instruments | 191 | (1,076) | |
Change in short-term investments | 0 | ||
Other, net | 0 | 285 | |
Net cash provided by (used in) investing activities | (7,585) | (3,295) | |
Policyholders’ account balances: | |||
Deposits | 9,464 | 6,184 | |
Withdrawals | (3,433) | (3,254) | |
Transfers (to) from Separate Accounts | 1,427 | 1,379 | |
Net cash provided by (used in) financing activities | $ 7,228 | 2,102 | |
As Previously Reported | |||
Adjustments to reconcile Net income (loss) to Net cash provided by (used in) operating activities: | |||
Amortization of deferred sales commission | 17 | ||
Amortization and depreciation | (60) | ||
Equity (income) loss from limited partnerships | 0 | ||
Distribution from joint ventures and limited partnerships | 63 | ||
Cash received on the recapture of captive reinsurance | 1,099 | ||
Changes in: | |||
Capitalization of DAC | 0 | ||
Future policy benefits | (58) | ||
Reinsurance recoverable | 20 | ||
Current and deferred income taxes | (264) | ||
Other, net | 123 | ||
Net cash provided by (used in) operating activities | 1,614 | ||
Proceeds from the sale/maturity/prepayment of: | |||
Trading account securities | 6,913 | ||
Real estate joint ventures | 0 | ||
Short-term investments | 0 | ||
Other | 344 | ||
Payment for the purchase/origination of: | |||
Short-term investments | 0 | ||
Cash settlements related to derivative instruments | (584) | ||
Change in short-term investments | 350 | ||
Other, net | 305 | ||
Net cash provided by (used in) investing activities | (2,990) | ||
Policyholders’ account balances: | |||
Deposits | 7,852 | ||
Withdrawals | (4,014) | ||
Transfers (to) from Separate Accounts | (338) | ||
Net cash provided by (used in) financing activities | 1,293 | ||
Presentation Reclassifications | |||
Adjustments to reconcile Net income (loss) to Net cash provided by (used in) operating activities: | |||
Amortization of deferred sales commission | (17) | ||
Amortization and depreciation | 318 | ||
Equity (income) loss from limited partnerships | (83) | ||
Distribution from joint ventures and limited partnerships | (63) | ||
Cash received on the recapture of captive reinsurance | 0 | ||
Changes in: | |||
Capitalization of DAC | (432) | ||
Future policy benefits | 0 | ||
Reinsurance recoverable | 0 | ||
Current and deferred income taxes | 0 | ||
Other, net | 146 | ||
Net cash provided by (used in) operating activities | (2) | ||
Proceeds from the sale/maturity/prepayment of: | |||
Trading account securities | 0 | ||
Real estate joint ventures | 140 | ||
Short-term investments | 1,806 | ||
Other | (140) | ||
Payment for the purchase/origination of: | |||
Short-term investments | (1,530) | ||
Cash settlements related to derivative instruments | 0 | ||
Change in short-term investments | (273) | ||
Other, net | (1) | ||
Net cash provided by (used in) investing activities | 2 | ||
Policyholders’ account balances: | |||
Deposits | 0 | ||
Withdrawals | 0 | ||
Transfers (to) from Separate Accounts | 0 | ||
Net cash provided by (used in) financing activities | 0 | ||
As Adjusted | |||
Adjustments to reconcile Net income (loss) to Net cash provided by (used in) operating activities: | |||
Amortization of deferred sales commission | 0 | ||
Amortization and depreciation | 258 | ||
Equity (income) loss from limited partnerships | (83) | ||
Distribution from joint ventures and limited partnerships | 0 | ||
Cash received on the recapture of captive reinsurance | 1,099 | ||
Changes in: | |||
Capitalization of DAC | (432) | ||
Future policy benefits | (58) | ||
Reinsurance recoverable | 20 | ||
Current and deferred income taxes | (264) | ||
Other, net | 269 | ||
Net cash provided by (used in) operating activities | 1,612 | ||
Proceeds from the sale/maturity/prepayment of: | |||
Trading account securities | 6,913 | ||
Real estate joint ventures | 140 | ||
Short-term investments | 1,806 | ||
Other | 204 | ||
Payment for the purchase/origination of: | |||
Short-term investments | (1,530) | ||
Cash settlements related to derivative instruments | (584) | ||
Change in short-term investments | 77 | ||
Other, net | 304 | ||
Net cash provided by (used in) investing activities | (2,988) | ||
Policyholders’ account balances: | |||
Deposits | 7,852 | ||
Withdrawals | (4,014) | ||
Transfers (to) from Separate Accounts | (338) | ||
Net cash provided by (used in) financing activities | 1,293 | ||
Impact of Revisions | |||
Adjustments to reconcile Net income (loss) to Net cash provided by (used in) operating activities: | |||
Amortization of deferred sales commission | 0 | ||
Amortization and depreciation | 0 | ||
Equity (income) loss from limited partnerships | 0 | ||
Distribution from joint ventures and limited partnerships | 0 | ||
Cash received on the recapture of captive reinsurance | 174 | ||
Changes in: | |||
Capitalization of DAC | 0 | ||
Future policy benefits | (541) | ||
Reinsurance recoverable | 86 | ||
Current and deferred income taxes | (400) | ||
Other, net | 179 | ||
Net cash provided by (used in) operating activities | (502) | ||
Proceeds from the sale/maturity/prepayment of: | |||
Trading account securities | 77 | ||
Real estate joint ventures | 0 | ||
Short-term investments | 0 | ||
Other | 0 | ||
Payment for the purchase/origination of: | |||
Short-term investments | 204 | ||
Cash settlements related to derivative instruments | (492) | ||
Change in short-term investments | (77) | ||
Other, net | (19) | ||
Net cash provided by (used in) investing activities | (307) | ||
Policyholders’ account balances: | |||
Deposits | (1,668) | ||
Withdrawals | 760 | ||
Transfers (to) from Separate Accounts | 1,717 | ||
Net cash provided by (used in) financing activities | $ 809 | ||
[1] | Prior period amounts have been reclassified to conform to the current period’s presentation. See Note 15 for further information. |
SUBSEQUENT EVENTS - Narrative (
SUBSEQUENT EVENTS - Narrative (Details) - Floating Rate Notes Due October 2024 - AXA Equity Holdings - Subsequent Event $ in Millions | Nov. 04, 2019USD ($) |
Subsequent Event [Line Items] | |
Face amount | $ 900 |
London Interbank Offered Rate (LIBOR) | |
Subsequent Event [Line Items] | |
Basis spread on variable rate | 1.33% |
Uncategorized Items - axaeq-201
Label | Element | Value |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 33,000,000 |
Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 8,000,000 |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 8,000,000 |
Noncontrolling Interest [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 25,000,000 |
Noncontrolling Interest [Member] | Discontinued Operations [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 25,000,000 |