Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2021 | Aug. 05, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 000-20501 | |
Entity Registrant Name | Equitable Financial Life Insurance Company | |
Entity Incorporation, State or Country Code | NY | |
Entity Tax Identification Number | 13-5570651 | |
Entity Address, Address Line One | 1290 Avenue of the Americas | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10104 | |
City Area Code | 212 | |
Local Phone Number | 554-1234 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 2,000,000 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2021 | |
Amendment Flag | false | |
Entity Central Index Key | 0000727920 | |
Current Fiscal Year End Date | --12-31 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 | |
Investments: | |||
Fixed maturities available-for-sale, at fair value (amortized cost of $65,545 and $68,136) (allowance for credit losses of $26 and $13) | $ 70,451 | $ 76,353 | |
Mortgage loans on real estate (net of allowance for credit losses of $63 and $81) | 13,367 | 13,142 | |
Policy loans | 3,562 | 3,635 | |
Other equity investments | [1] | 2,418 | 1,342 |
Trading securities, at fair value | 855 | 5,340 | |
Other invested assets | 2,507 | 2,383 | |
Total investments | 93,160 | 102,195 | |
Cash and cash equivalents | 1,816 | 2,043 | |
Deferred policy acquisition costs | 3,985 | 3,816 | |
Amounts due from reinsurers (allowance for credit losses of $5 and $5 ) | 13,011 | 3,053 | |
Loans to affiliates | 1,900 | 900 | |
GMIB reinsurance contract asset, at fair value | 2,290 | 2,859 | |
Current and deferred income taxes | 890 | 0 | |
Other assets | 3,379 | 3,078 | |
Separate Accounts assets | 142,580 | 133,350 | |
Total Assets | 263,011 | 251,294 | |
LIABILITIES | |||
Policyholders’ account balances | 71,360 | 63,109 | |
Future policy benefits and other policyholders' liabilities | 37,042 | 40,151 | |
Broker-dealer related payables | 1,172 | 1,064 | |
Amounts due to reinsurers | 120 | 122 | |
Current and deferred income taxes | 0 | 234 | |
Other liabilities | 2,124 | 1,580 | |
Separate Accounts liabilities | 142,580 | 133,350 | |
Total Liabilities | 254,398 | 239,610 | |
Redeemable noncontrolling interest | [2] | 24 | 41 |
Commitments and contingent liabilities (Note 12) | |||
Equity attributable to Equitable Financial: | |||
Common stock, $1.25 par value; 2,000,000 shares authorized, issued and outstanding | 2 | 2 | |
Additional paid-in capital | 8,531 | 7,841 | |
Retained earnings | (2,584) | (795) | |
Accumulated other comprehensive income (loss) | 2,640 | 4,595 | |
Total Equity | 8,589 | 11,643 | |
Total Liabilities, Redeemable Noncontrolling Interest and Equity | $ 263,011 | $ 251,294 | |
[1] | See Note 2 for details of balances with VIEs. | ||
[2] | See Note 11 for details of redeemable noncontrolling interest. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Fixed maturities available-for-sale, amortized cost | $ 65,545 | $ 68,136 |
Fixed maturities available-for-sale, allowance for credit losses | 26 | 13 |
Mortgage loans on real estate, valuation allowances | 63 | 81 |
Reinsurance recoverable, allowance for credit loss | $ 5 | $ 5 |
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) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
REVENUES | ||||
Policy charges and fee income | $ 890 | $ 824 | $ 1,770 | $ 1,729 |
Premiums | 188 | 199 | 393 | 435 |
Net derivative gains (losses) | (1,138) | (5,908) | (3,916) | 3,624 |
Net investment income (loss) | 934 | 921 | 1,770 | 1,525 |
Investment gains (losses), net: | ||||
Credit losses on available-for-sale debt securities and loans | 5 | (31) | 6 | (43) |
Other investment gains (losses), net | 405 | 176 | 587 | 243 |
Total investment gains (losses), net | 410 | 145 | 593 | 200 |
Investment management and service fees | 280 | 235 | 563 | 487 |
Other income | 27 | 10 | 41 | 25 |
Total revenues | 1,591 | (3,574) | 1,214 | 8,025 |
BENEFITS AND OTHER DEDUCTIONS | ||||
Policyholders’ benefits | 852 | 691 | 1,675 | 3,317 |
Interest credited to policyholders’ account balances | 286 | 279 | 556 | 568 |
Compensation and benefits | 54 | 54 | 135 | 134 |
Commissions | 172 | 148 | 354 | 309 |
Interest expense | 0 | 0 | 1 | 0 |
Amortization of deferred policy acquisition costs | 187 | 149 | 249 | 1,171 |
Other operating costs and expenses | 225 | 218 | 624 | 432 |
Total benefits and other deductions | 1,776 | 1,539 | 3,594 | 5,931 |
Income (loss) from continuing operations, before income taxes | (185) | (5,113) | (2,380) | 2,094 |
Income tax (expense) benefit | 12 | 1,027 | 599 | (430) |
Net income (loss) | (173) | (4,086) | (1,781) | 1,664 |
Less: Net income (loss) attributable to the noncontrolling interest | 1 | 4 | 1 | (3) |
Net income (loss) attributable to Equitable Financial | $ (174) | $ (4,090) | $ (1,782) | $ 1,667 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | ||
COMPREHENSIVE INCOME (LOSS) | |||||
Net income (loss) | $ (173) | $ (4,086) | $ (1,781) | $ 1,664 | |
Other comprehensive income (loss), net of income taxes: | |||||
Change in unrealized gains (losses), net of adjustment | [1] | 1,159 | 1,570 | (1,955) | 3,080 |
Other comprehensive income (loss), net of income taxes | 1,159 | 1,570 | (1,955) | 3,080 | |
Comprehensive income (loss) | 986 | (2,516) | (3,736) | 4,744 | |
Less: Comprehensive income (loss) attributable to the noncontrolling interest | 1 | 4 | 1 | (3) | |
Comprehensive income (loss) attributable to Equitable Financial | $ 985 | $ (2,520) | $ (3,737) | $ 4,747 | |
[1] | See Note 10 for details of change in unrealized gains (losses), net of adjustments. |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Millions | Total | Parent | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Non-controlling Interest | Cumulative effect of adoption | Cumulative effect of adoptionParent | Cumulative effect of adoptionRetained Earnings |
Beginning balance at Dec. 31, 2019 | $ 11,565 | $ 11,552 | $ 2 | $ 7,809 | $ 2,145 | $ 1,596 | $ 13 | $ (32) | $ (32) | $ (32) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Dividend to parent company | (1,200) | (1,200) | (1,200) | |||||||
Net income (loss) | 1,665 | 1,667 | 1,667 | (2) | ||||||
Other comprehensive income (loss) | 3,080 | 3,080 | 3,080 | |||||||
Other | 10 | 12 | 12 | (2) | ||||||
Ending balance at Jun. 30, 2020 | $ 15,088 | 15,079 | 2 | 7,821 | 2,580 | 4,676 | 9 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Accounting standards update [extensible enumeration] | us-gaap:AccountingStandardsUpdate201613Member | |||||||||
Beginning balance at Mar. 31, 2020 | $ 18,798 | 18,789 | 2 | 7,811 | 7,870 | 3,106 | 9 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Dividend to parent company | (1,200) | (1,200) | (1,200) | |||||||
Net income (loss) | (4,090) | (4,090) | (4,090) | |||||||
Other comprehensive income (loss) | 1,570 | 1,570 | 1,570 | |||||||
Other | 10 | 10 | 10 | |||||||
Ending balance at Jun. 30, 2020 | 15,088 | 15,079 | 2 | 7,821 | 2,580 | 4,676 | 9 | |||
Beginning balance at Dec. 31, 2020 | 11,643 | 11,643 | 2 | 7,841 | (795) | 4,595 | 0 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Dividend to parent company | (7) | (7) | (7) | |||||||
Capital contribution from parent company | 750 | 750 | 750 | |||||||
Net income (loss) | (1,782) | (1,782) | (1,782) | |||||||
Other comprehensive income (loss) | (1,955) | (1,955) | (1,955) | |||||||
Other | (60) | (60) | (60) | |||||||
Ending balance at Jun. 30, 2021 | 8,589 | 8,589 | 2 | 8,531 | (2,584) | 2,640 | 0 | |||
Beginning balance at Mar. 31, 2021 | 6,907 | 6,907 | 2 | 7,827 | (2,403) | 1,481 | 0 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Dividend to parent company | (7) | (7) | (7) | |||||||
Capital contribution from parent company | 750 | 750 | 750 | |||||||
Net income (loss) | (174) | (174) | (174) | |||||||
Other comprehensive income (loss) | 1,159 | 1,159 | 1,159 | |||||||
Other | (46) | (46) | (46) | |||||||
Ending balance at Jun. 30, 2021 | $ 8,589 | $ 8,589 | $ 2 | $ 8,531 | $ (2,584) | $ 2,640 | $ 0 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | ||
Statement of Cash Flows [Abstract] | |||
Net income (loss) | $ (1,781) | $ 1,664 | |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Interest credited to policyholders’ account balances | 556 | 568 | |
Policy charges and fee income | (1,770) | (1,729) | |
Net derivative (gains) losses | 3,916 | (3,624) | |
Credit losses on AFS debt securities and loans | (6) | 43 | |
Investment (gains) losses, net | (587) | (243) | |
Realized and unrealized (gains) losses on trading securities | 42 | (104) | |
Non-cash long-term incentive compensation expense | (31) | 13 | |
Amortization and depreciation | 188 | 1,130 | |
Equity (income) loss from limited partnerships | (219) | 53 | |
Changes in: | |||
Reinsurance recoverable | [1] | (755) | (149) |
Capitalization of deferred policy acquisition costs | (341) | (291) | |
Future policy benefits | 126 | 1,686 | |
Current and deferred income taxes | (605) | 439 | |
Other, net | 379 | (324) | |
Net cash provided by (used in) operating activities | (888) | (868) | |
Proceeds from the sale/maturity/prepayment of: | |||
Fixed maturities, available-for-sale | 20,494 | 7,269 | |
Mortgage loans on real estate | 543 | 383 | |
Trading account securities | 4,529 | 801 | |
Short-term investments | 81 | 935 | |
Other | 1,096 | 155 | |
Payment for the purchase/origination of: | |||
Fixed maturities, available-for-sale | (26,007) | (11,292) | |
Mortgage loans on real estate | (741) | (860) | |
Trading account securities | (98) | (236) | |
Short-term investments | (5) | (651) | |
Other | (1,783) | (232) | |
Cash settlements related to derivative instruments, net | (6,119) | 5,084 | |
Issuance of loans to affiliates | (1,000) | 0 | |
Investment in capitalized software, leasehold improvements and EDP equipment | (26) | (21) | |
Other, net | (15) | 51 | |
Net cash provided by (used in) investing activities | (9,051) | 1,386 | |
Cash flows from financing activities: | |||
Deposits | 9,718 | 4,327 | |
Withdrawals | (3,143) | (2,045) | |
Transfer (to) from Separate Accounts | 1,025 | 900 | |
Change in collateralized pledged assets | 67 | 58 | |
Change in collateralized pledged liabilities | 1,266 | 247 | |
Capital contributions from parent | 750 | 0 | |
Shareholder dividend paid | (7) | (1,200) | |
Purchase (redemption) of noncontrolling interests of consolidated company-sponsored investment funds | 8 | 1 | |
Other, net | 28 | 20 | |
Net cash provided by (used in) financing activities | 9,712 | 2,308 | |
Change in cash and cash equivalents | (227) | 2,826 | |
Cash and cash equivalents, beginning of year | 2,043 | 1,492 | |
Cash and cash equivalents, end of year | 1,816 | 4,318 | |
Non-cash transactions from investing and financing activities: | |||
Right-of-use assets obtained in exchange for lease obligations | 1 | 14 | |
Transfer of assets to reinsurer | $ (9,023) | $ 0 | |
[1] | Amount includes cash paid for Venerable transaction of $494 million (see Note 1 Organization). |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) $ in Millions | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Statement of Cash Flows [Abstract] | |
Cash paid for Venerable reinsurance transaction | $ 494 |
ORGANIZATION
ORGANIZATION | 6 Months Ended |
Jun. 30, 2021 | |
Organization [Abstract] | |
ORGANIZATION | ORGANIZATION Equitable Financial’s (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 Holdings. Equitable Financial is a stock life insurance company organized in 1859 under the laws of the State of New York. The Company’s two principal subsidiaries include Equitable Distributors and EIM. Both Equitable Distributors and EIM are wholly-owned Delaware limited liability companies. On June 1, 2021, Holdings completed its previously announced sale (the “Transaction”) of Corporate Solutions Life Reinsurance Company, an insurance company domiciled in Delaware and wholly owned subsidiary of Holdings (“CSLRC”), to Venerable Insurance and Annuity Company, an insurance company domiciled in Iowa (“VIAC”), pursuant to the Master Transaction Agreement, dated October 27, 2020 (the “Master Transaction Agreement”), among the Company, VIAC and, solely with respect to Article XIV thereof, Venerable Holdings, Inc., a Delaware corporation (“Venerable”). VIAC issued a surplus note in aggregate principal amount of $50 million to Equitable Financial for cash consideration. Immediately following the closing of the Transaction, CSLRC and Equitable Financial entered into a coinsurance and modified coinsurance agreement (the “Reinsurance Agreement”), pursuant to which Equitable Financial ceded to CSLRC, on a combined coinsurance and modified coinsurance basis, legacy variable annuity policies sold by Equitable Financial between 2006-2008 (the “Block”), comprised of non-New York “Accumulator” policies containing fixed rate Guaranteed Minimum Income Benefit and/or Guaranteed Minimum Death Benefit guarantees. At the closing of the Transaction, CSLRC deposited assets supporting the general account liabilities relating to the Block into a trust account for the benefit of Equitable Financial, which assets will secure its obligations to Equitable Financial under the Reinsurance Agreement. The Company transferred assets of $9.5 billion, including primarily available for sale securities and cash, to a collateral trust account as the consideration for the reinsurance transaction. In addition, the Company recorded $9.6 billion of direct insurance liabilities ceded under the reinsurance contract, of which $5.3 billion is accounted at fair value, as the reinsurance of GMxB with no lapse guarantee riders are embedded derivatives. Additionally, $16.9 billion of Separate Account liabilities were ceded under a modified coinsurance portion of the agreement. In addition, upon the completion of the Transaction, Equitable Investment Management Group, LLC, a wholly owned subsidiary of the Company, acquired an approximate 9.09% equity interest in Venerable’s parent holding company, VA Capital Company LLC. In connection with such investment, Equitable Investment Management Group, LLC will have the right to designate a member of the Board of Managers of VA Capital Company LLC. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Principles of Consolidation The unaudited interim consolidated financial statements (the “consolidated financial statements”) have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP” or “GAAP”) on a basis consistent with reporting interim financial information in accordance with instructions to the Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission (“SEC”). 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, with the exception of the Company’s update of its interest rate assumption and adoption of new economic scenario generator as further described below in Assumption Updates and Model Changes. Interim results are not necessarily indicative of the results that may be expected for the full year. These financial statements should be read in conjunction with the Company’s consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. The accompanying unaudited consolidated financial statements present the consolidated results of operations, financial condition and cash flows of the Company and its subsidiaries and those investment companies, partnerships and joint ventures in which the Company has control and a majority economic interest as well as those variable interest entities (“VIEs”) that meet the requirements for consolidation. All significant intercompany transactions and balances have been eliminated in consolidation. The terms “second quarter 2021” and “second quarter 2020” refer to the three months ended June 30, 2021 and 2020, respectively. The terms “first six months of 2021” and “first six months of 2020” refer to the six months ended June 30, 2021 and 2020, respectively. Certain prior year amounts have been reclassified to conform to the current year’s presentation. Adoption of New Accounting Pronouncements Description Effect on the Financial Statement or Other Significant Matters ASU 2019-12: Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes This ASU simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740, as well as clarifying and amending existing guidance. On January 1, 2021, the Company adopted the new accounting standards update. The new guidance is applied either on a retrospective, modified retrospective or prospective basis based on the items to which the amendments relate. The adoption did not have a material impact on the Company’s consolidated financial position, results of operations and cash flows as of the adoption date. Future Adoption of New Accounting Pronouncements Description Effective Date and Method of Adoption Effect on the Financial Statement or Other Significant Matters ASU 2018-12: Financial Services - Insurance (Topic 944); ASU 2020-11: Financial Services - Insurance (Topic 944): Effective Date and Early Application 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: 1. 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. In November 2020, the FASB issued ASU 2020-11 which deferred the effective date of the amendments in ASU 2018-12 for all insurance entities. ASU 2018-12 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. Early adoption is allowed. 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 Accumulated other comprehensive income (“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. The Company is currently 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. 2. Measurement of market risk benefits (“MRBs”). MRBs, as defined under the ASU, will encompass certain variable annuity guaranteed benefit (“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 Other comprehensive income (“OCI”). 3. Amortization of deferred acquisition costs. The ASU simplifies the amortization of deferred 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. 4. Expanded footnote disclosures. The ASU requires additional disclosures including disaggregated roll-forwards of beginning to ending balances of the liability for future policy benefits, policyholder account balances, MRBs, separate account liabilities and deferred 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. Description Effective Date and Method of Adoption Effect on the Financial Statement or Other Significant Matters ASU2020-04: Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting The amendments in this ASU provide optional expedients and exceptions to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in this ASU apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. This ASU is effective as of March 12, 2020 through December 31, 2022. The Company is currently assessing the applicability of the optional expedients and exceptions provided under the ASU. Management is evaluating the impact that the adoption of this guidance will have on the Company’s consolidated financial statements. Investments The carrying values of fixed maturities classified as AFS are reported at fair value. Changes in fair value are reported in OCI, net of allowance for credit losses, policy related amounts and deferred income taxes. Changes in credit losses are recognized in Investment gains (losses), net. The redeemable preferred stock investments that are reported in fixed maturities include REIT, perpetual preferred stock and redeemable preferred stock. These securities may not have a stated maturity, may not be cumulative and do not provide for mandatory redemption by the issuer. Effective January 1, 2021, the Company began classifying certain preferred stock as equity securities to better reflect the economics and nature of these securities. These preferred stock securities are reported in other equity investments. The Company determines the fair values of fixed maturities and equity securities based upon quoted prices in active markets, when available, or through the use of alternative approaches when market quotes are not readily accessible or available. These alternative approaches include matrix or model pricing and use of independent pricing services, each supported by reference to principal market trades or other observable market assumptions for similar securities. More specifically, the matrix pricing approach to fair value is a discounted cash flow methodology that incorporates market interest rates commensurate with the credit quality and duration of the investment. The Company’s management, with the assistance of its investment advisors, evaluates AFS debt securities that experienced a decline in fair value below amortized cost for credit losses which are evaluated in accordance with the new financial instruments credit losses guidance. Integral to this review is an assessment made each quarter, on a security-by-security basis, by the Company’s IUS Committee, of various indicators of credit deterioration to determine whether the investment security has experienced a credit loss. This assessment includes, but is not limited to, consideration of the severity of the unrealized loss, failure, if any, of the issuer of the security to make scheduled payments, actions taken by rating agencies, adverse conditions specifically related to the security or sector, the financial strength, liquidity and continued viability of the issuer. The Company recognizes an allowance for credit losses on AFS debt securities with a corresponding adjustment to earnings rather than a direct write down that reduces the cost basis of the investment, and credit losses are limited to the amount by which the security’s amortized cost basis exceeds its fair value. Any improvements in estimated credit losses on AFS debt securities are recognized immediately in earnings. Management does not use the length of time a security has been in an unrealized loss position as a factor, either by itself or in combination with other factors, to conclude that a credit loss does not exist. When the Company determines that there is more than 50% likelihood that it is not going to recover the principal and interest cash flows related to an AFS debt security, the security is placed on nonaccrual status and the Company reverses accrued interest receivable against interest income. Since the nonaccrual policy results in a timely reversal of accrued interest receivable, the Company does not record an allowance for credit losses on accrued interest receivable. If there is no intent to sell or likely requirement to dispose of the fixed maturity security before its recovery, only the credit loss component of any resulting allowance is recognized in income (loss) and the remainder of the fair value loss is recognized in OCI. The amount of credit loss is the shortfall of the present value of the cash flows expected to be collected as compared to the amortized cost basis of the security. The present value is calculated by discounting management’s best estimate of projected future cash flows at the effective interest rate implicit in the debt security at the date of acquisition. Projections of future cash flows are based on assumptions regarding probability of default and estimates regarding the amount and timing of recoveries. These assumptions and estimates require use of management judgment and consider internal credit analyses as well as market observable data relevant to the collectability of the security. For mortgage and asset-backed securities, projected future cash flows also include assumptions regarding prepayments and underlying collateral value. Write-offs of AFS debt securities are recorded when all or a portion of a financial asset is deemed uncollectible. Full or partial write-offs are recorded as reductions to the amortized cost basis of the AFS debt security and deducted from the allowance in the period in which the financial assets are deemed uncollectible. The Company elected to reverse accrued interest deemed uncollectible as a reversal of interest income. In instances where the Company collects cash that it has previously written off, the recovery will be recognized through earnings or as a reduction of the amortized cost basis for interest and principal, respectively. COLI has been purchased by the Company and certain subsidiaries on the lives of certain key employees and the Company and these subsidiaries are named as beneficiaries under these policies. COLI is carried at the cash surrender value of the policies. As of June 30, 2021 and December 31, 2020, the carrying value of COLI was $999 million and $989 million, respectively, and is reported in other invested assets in the consolidated balance sheets. Derivatives Derivatives are financial instruments whose values are derived from interest rates, foreign exchange rates, financial indices, values of securities or commodities, credit spreads, market volatility, expected returns and liquidity. Values can also be affected by changes in estimates and assumptions, including those related to counterparty behavior and non-performance risk used in valuation models. Derivative financial instruments generally used by the Company include equity, currency, and interest rate futures, total return and/or other equity swaps, interest rate swaps and floors, swaptions, variance swaps and equity options, all of which may be exchange-traded or contracted in the OTC market. All derivative positions are carried in the consolidated balance sheets at fair value, generally by obtaining quoted market prices or through the use of valuation models. Freestanding derivative contracts are reported in the consolidated balance sheets either as assets within “other invested assets” or as liabilities within “other liabilities”. 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. All changes in the fair value of the Company’s freestanding derivative positions not designated to hedge accounting relationships, including net receipts and payments, are included in “net derivative gains (losses)” without considering changes in the fair value of the economically associated assets or liabilities. The Company has designated certain derivatives it uses to economically manage asset/liability risk in relationships which qualify for hedge accounting. To qualify for hedge accounting, we formally document our designation at inception of the hedge relationship as a cash flow, fair value or net investment hedge. This documentation includes our risk management objective and strategy for undertaking the hedging transaction. The Company identifies how the hedging instrument is expected to offset the designated risks related to the hedged item and the method that will be used to retrospectively and prospectively assess the hedge effectiveness. To qualify for hedge accounting, a hedging instrument must be assessed as being highly effective in offsetting the designated risk of the hedged item. Hedge effectiveness is formally assessed and documented at inception and periodically throughout the life of the hedge accounting relationship. The Company does not exclude any components of the hedging instrument from the effectiveness assessments and therefor does not separately measure or account for any excluded components of the hedging instrument. While in cash flow hedge relationships, any periodic net receipts and payments from the hedging instrument are included in the income or expense line that the hedged item’s periodic income or expense is recognized. Other changes in the fair value of the hedging instrument while in a cash flow hedging relationship are reported within OCI. These amounts are deferred in AOCI until they are reclassified to Net income (loss). The reclassified amount offsets the effect of the cash flows on Net income (loss) in the same period when the hedged item affects earnings and on the same line as the hedged item. We discontinue cash flow hedge accounting prospectively when the Company determines: (1) the hedging instrument is no longer highly effective in offsetting changes in the cash flow from the hedged risk, (2) the hedged item is no longer probable of occurring within two months of their forecast, or (3) the hedging instrument is otherwise redesignated from the hedging relationship. Changes in the fair value of the derivative after discontinuation of cash flow hedge accounting are accounted for as freestanding derivative positions not designated to hedge accounting relationships unless and until the derivative is redesignated to a hedge accounting relationship. When cash flow hedge accounting is discontinued the amounts deferred in AOCI during the hedge relationship continue to be deferred in AOCI, as long as the hedged items continue to be probable of occurring within two months of their forecast, until the hedged item affects Net income (loss). Any amount deferred in AOCI for hedged items which are no longer probable of occurring within two months of their forecast will be reclassified to “net derivative gains (losses)” at that time. The Company is a party to financial instruments and other contracts that contain “embedded” derivative instruments. At inception, the Company assesses whether the economic characteristics of the embedded instrument are “clearly and closely related” to the economic characteristics of the remaining component of the “host contract” and whether a separate instrument with the same terms as the embedded instrument would meet the definition of a derivative instrument. Once those criteria are assessed, if necessary, the resulting embedded derivative is bifurcated from the host contract, carried in the consolidated balance sheets at fair value, and changes in its fair value are recognized immediately and captioned in the consolidated statements of income (loss) according to the nature of the related host contract. For certain financial instruments that contain an embedded derivative that otherwise would need to be bifurcated and reported at fair value, the Company instead may elect to carry the entire instrument at fair value. Accounting and Consolidation of VIEs For all new investment products and entities developed by the Company, the Company first determines whether the entity is a VIE, which involves determining an entity’s variability and variable interests, identifying the holders of the equity investment at risk and assessing the five characteristics of a VIE. Once an entity has been determined to be a VIE, the Company then determines whether it is the primary beneficiary of the VIE based on its beneficial interests. If the Company is deemed to be the primary beneficiary of the VIE, then the Company consolidates the entity. Management of the Company reviews quarterly its investment management agreements and its investments in, and other financial arrangements with, certain entities that hold client AUM to determine the entities that the Company is required to consolidate under this guidance. These entities include certain mutual fund products, hedge funds, structured products, group trusts, collective investment trusts and limited partnerships. The analysis performed to identify variable interests held, determine whether entities are VIEs or VOEs, and evaluate whether the Company has a controlling financial interest in such entities requires the exercise of judgment and is updated on a continuous basis as circumstances change or new entities are developed. The primary beneficiary evaluation generally is performed qualitatively based on all facts and circumstances, including consideration of economic interests in the VIE held directly and indirectly through related parties and entities under common control, as well as quantitatively, as appropriate. Consolidated VIEs As of June 30, 2021 and December 31, 2020, the Company consolidated limited partnerships and LLCs for which it was identified as the primary beneficiary under the VIE model. Included in Other invested assets and Mortgage loans on real estate in the Company’s consolidated balance sheets at June 30, 2021 and December 31, 2020 are total assets of $134 million and $12 million, respectively related to these VIE. Non-Consolidated VIEs As of June 30, 2021 and December 31, 2020, respectively, the Company held approximately $1.9 billion and $1.3 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 CLOs, 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 applies the equity method of accounting for these positions. The net assets of these non-consolidated VIEs are approximately $197.3 billion and $165.8 billion as of June 30, 2021 and December 31, 2020, respectively. The Company’s maximum exposure to loss from its direct involvement with these VIEs is the carrying value of its investment of $1.9 billion and $1.3 billion and approximately $1.3 billion and $1.2 billion of unfunded commitments as of June 30, 2021 and December 31, 2020, respectively. The Company has no further economic interest in these VIEs in the form of guarantees, derivatives, credit enhancements or similar instruments and obligations. 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 our insurance business, liabilities for future policyholder benefits, DAC and DSI assets. However, the Company updates its assumptions as needed in the event it becomes aware of economic conditions or events that could require a change in assumptions that it believes may have a significant impact to the carrying value of product liabilities and assets and consequently materially impact its earnings in the period of the change. Due to the extraordinary economic conditions driven by the COVID-19 pandemic in the first quarter of 2020, the Company updated its interest rate assumption to grade from the current interest rate environment to an ultimate five-year historical average over a 10-year period. As such, the 10-year U.S. Treasury yield grades from the current level to an ultimate 5-year average of 2.25%. The low interest rate environment and update to the interest rate assumption caused a loss recognition event for the Company’s life interest-sensitive products, as well as to certain run-off business. This loss recognition event caused an acceleration of DAC amortization on the life interest-sensitive products and an increase in the premium deficiency reserve on the run-off business in the first quarter of 2020. Impact of Assumption Updates There were no assumption changes in the first and second quarters of 2021. The net impact of the assumption update in the first six months of 2020 was an increase in policy charges and fee income of $54 million, an increase in policyholders’ benefits of $1.3 billion, a decrease in interest credited to policyholders’ account balances of $6 million, and an increase in amortization of DAC of $840 million. This resulted in a decrease in income (loss) from operations, before income taxes of $2.1 billion and a decrease in net income (loss) of $1.7 billion. Model Changes There were no material model changes in the first and second quarters of 2021. In the first quarter of 2020, the Company adopted a new economic scenario generator to calculate the fair value of the GMIB reinsurance contract asset and GMxB derivative features liability, eliminating reliance on AXA for scenario production. The new economic scenario generator allows for a tighter calibration of U.S. indices, better reflecting the Company’s actual portfolio. The net impact of the new economic scenario generator resulted in an increase in income (loss) from continuing operations, before income taxes of $165 million, and an increase to net income (loss) of $130 million during the first six months of 2020. Revision of Prior Period Financial Statements The Company identified certain errors in its previously issued financial statements primarily related to the calculation of actuarially determined insurance contract assets and liabilities. The impact of these errors to the current and the prior periods consolidated financial statements was not considered to be material. In order to improve the consistency and comparability of the financial statements, management revised the consolidated financial statements to include the revisions discussed herein. See Note 13 to the Notes to Consolidated Financial Statements for details of the revisions. |
INVESTMENTS
INVESTMENTS | 6 Months Ended |
Jun. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENTS | INVESTMENTS Fixed Maturities AFS The components of fair value and amortized cost for fixed maturities classified as AFS on the consolidated balance sheets excludes accrued interest receivable because the Company elected to present accrued interest receivable within other assets. Accrued interest receivable on AFS fixed maturities as of June 30, 2021 was $445 million. There was no accrued interest written off for AFS fixed maturities for the three and six months ended June 30, 2021. The following tables provide information relating to the Company’s fixed maturities classified as AFS. AFS Fixed Maturities by Classification Amortized Allowance for Credit Losses Gross Gross Fair Value (in millions) June 30, 2021: (5) Fixed Maturities: Corporate (1) $ 43,004 $ 26 $ 3,071 $ 114 $ 45,935 U.S. Treasury, government and agency 14,528 — 1,774 4 16,298 States and political subdivisions 496 — 80 2 574 Foreign governments 907 — 54 9 952 Residential mortgage-backed (2) 99 — 10 — 109 Asset-backed (3) 4,876 — 30 2 4,904 Commercial mortgage-backed 1,564 — 36 5 1,595 Redeemable preferred stock (4) 71 — 13 — 84 Total at June 30, 2021 $ 65,545 $ 26 $ 5,068 $ 136 $ 70,451 December 31, 2020: Fixed Maturities: Corporate (1) $ 48,501 $ 13 $ 4,703 $ 89 $ 53,102 U.S. Treasury, government and agency 12,644 — 3,304 5 15,943 States and political subdivisions 482 — 92 — 574 Foreign governments 1,011 — 98 6 1,103 Residential mortgage-backed (2) 119 — 12 — 131 Asset-backed (3) 3,633 — 28 5 3,656 Commercial mortgage-backed 1,148 — 55 — 1,203 Redeemable preferred stock 598 — 46 3 641 Total at December 31, 2020 $ 68,136 $ 13 $ 8,338 $ 108 $ 76,353 ______________ (1) Corporate fixed maturities include 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, credit risk transfer securities. and other asset types. (4) Effective January 1, 2021, certain preferred stock have been reclassified to other equity investments (see Note 2 Significant Accounting Policies – Investments). (5) Decrease in AFS Fixed Maturities as of June 30, 2021 is primarily due to transferred assets related to the Venerable transaction. For additional information on the Venerable transaction, see Note 1-Organization of the Notes to Consolidated Financial Statements. The contractual maturities of AFS fixed maturities as of June 30, 2021 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 AFS Fixed Maturities Amortized Cost (Less Allowance for Credit Losses) Fair Value (in millions) June 30, 2021: Contractual maturities: Due in one year or less $ 1,963 $ 1,980 Due in years two through five 15,171 15,977 Due in years six through ten 15,771 16,976 Due after ten years 26,004 28,826 Subtotal 58,909 63,759 Residential mortgage-backed 99 109 Asset-backed 4,876 4,904 Commercial mortgage-backed 1,564 1,595 Redeemable preferred stock 71 84 Total at June 30, 2021 $ 65,519 $ 70,451 The following table shows proceeds from sales, gross gains (losses) from sales and credit losses for AFS fixed maturities for the three and six months ended June 30, 2021 and 2020: Proceeds from Sales, Gross Gains (Losses) from Sales and Credit Losses for AFS Fixed Maturities Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (in millions) Proceeds from sales $ 9,531 $ 2,864 $ 16,719 $ 4,586 Gross gains on sales $ 554 $ 205 $ 845 $ 274 Gross losses on sales $ (38) $ (24) $ (154) $ (27) Credit losses $ (6) $ (11) $ (12) $ (13) 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. AFS Fixed Maturities - Credit Loss Impairments Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (in millions) Balance, beginning of period $ 34 $ 17 $ 28 $ 15 Previously recognized impairments on securities that matured, paid, prepaid or sold (1) — (1) — Recognized impairments on securities impaired to fair value this period (1) — — — — Credit losses recognized this period on securities for which credit losses were not previously recognized 6 8 8 10 Additional credit losses this period on securities previously impaired 1 3 5 3 Increases due to passage of time on previously recorded credit losses — — — — Accretion of previously recognized impairments due to increases in expected cash flows (for OTTI securities 2019 and prior) — — — — Balance at June 30, $ 40 $ 28 $ 40 $ 28 ______________ (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. The tables that follow below present a roll-forward of net unrealized investment gains (losses) recognized in AOCI. Net Unrealized Gains (Losses) on AFS Fixed Maturities Net Unrealized Gains (Losses) on Investments DAC Policyholders’ Liabilities Deferred Income Tax Asset (Liability) AOCI Gain (Loss) Related to Net Unrealized Investment Gains (Losses) (in millions) Balance, April 1, 2021 $ 3,124 $ (301) $ (811) $ (423) $ 1,589 Net investment gains (losses) arising during the period 2,196 — — — 2,196 Reclassification adjustment: — Included in Net income (loss) (398) — — — (398) Excluded from Net income (loss) — — — — — Other — — — — — Impact of net unrealized investment gains (losses) — (87) (224) (312) (623) Net unrealized investment gains (losses) excluding credit losses 4,922 (388) (1,035) (735) 2,764 Net unrealized investment gains (losses) with credit losses 9 (1) (2) (1) 5 Balance, June 30, 2021 $ 4,931 $ (389) $ (1,037) $ (736) $ 2,769 Balance, April 1, 2020 $ 5,040 $ (205) $ (1,003) $ (805) $ 3,027 Net investment gains (losses) arising during the period 3,336 — — — 3,336 Reclassification adjustment: — Included in Net income (loss) (167) — — — (167) Excluded from Net income (loss) — — — — — Impact of net unrealized investment gains (losses) — (289) (799) (437) (1,525) Net unrealized investment gains (losses) excluding credit losses 8,209 (494) (1,802) (1,242) 4,671 Net unrealized investment gains (losses) with credit losses (2) — 1 — (1) Balance, June 30, 2020 $ 8,207 $ (494) $ (1,801) $ (1,242) $ 4,670 Net Unrealized Gains (Losses) on Investments DAC Policyholders’ Liabilities Deferred Income Tax Asset (Liability) AOCI Gain (Loss) Related to Net Unrealized Investment Gains (Losses) (in millions) Balance, January 1, 2021 $ 8,230 $ (466) $ (1,814) $ (1,250) $ 4,700 Net investment gains (losses) arising during the period (2,695) — — — (2,695) Reclassification adjustment: — Included in net income (loss) (574) — — — (574) Excluded from net income (loss) — — — — — Other (1) (31) — — — (31) Impact of net unrealized investment gains (losses) — 77 777 514 1,368 Net unrealized investment gains (losses) excluding credit losses 4,930 (389) (1,037) (736) 2,768 Net unrealized investment gains (losses) with credit losses 1 — — — 1 Balance, June 30, 2021 $ 4,931 $ (389) $ (1,037) $ (736) $ 2,769 Balance, January 1, 2020 $ 3,084 $ (826) $ (192) $ (433) $ 1,633 Net investment gains (losses) arising during the period 5,362 — — — 5,362 Reclassification adjustment: Included in net income (loss) (230) — — — (230) Excluded from net income (loss) — — — — — Impact of net unrealized investment gains (losses) — 331 (1,611) (810) (2,090) Net unrealized investment gains (losses) excluding credit losses 8,216 (495) (1,803) (1,243) 4,675 Net unrealized investment gains (losses) with credit losses (9) 1 2 1 (5) Balance, June 30, 2020 $ 8,207 $ (494) $ (1,801) $ (1,242) $ 4,670 _____________ (1) Effective January 1, 2021, certain preferred stock have been reclassified to other equity investments (see Note 2 Significant Accounting Policies – Investments). The following tables disclose the fair values and gross unrealized losses of the 959 issues as of June 30, 2021 and the 537 issues as of December 31, 2020 that are not deemed to have credit losses, 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: AFS Fixed Maturities in an Unrealized Loss Position for Which No Allowance Is Recorded Less Than 12 Months 12 Months or Longer Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (in millions) June 30, 2021 Fixed Maturities: Corporate $ 4,777 $ 96 $ 297 $ 14 $ 5,074 $ 110 U.S. Treasury, government and agency 642 5 — — 642 5 States and political subdivisions 84 2 — — 84 2 Foreign governments 222 5 21 4 243 9 Asset-backed 902 2 20 — 922 2 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) Commercial mortgage-backed 402 5 — — 402 5 Total at June 30, 2021 $ 7,029 $ 115 $ 338 $ 18 $ 7,367 $ 133 December 31, 2020: Fixed Maturities: Corporate $ 2,773 $ 52 $ 332 $ 32 $ 3,105 $ 84 U.S. Treasury, government and agency 881 5 — — 881 5 Foreign governments 153 2 20 4 173 6 Asset-backed 809 4 76 1 885 5 Redeemable preferred stock 53 1 11 2 64 3 Total at December 31, 2020 $ 4,669 $ 64 $ 439 $ 39 $ 5,108 $ 103 . 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 0.7% of total corporate securities. The largest exposures to a single issuer of corporate securities held as of June 30, 2021 and December 31, 2020 were $313 million and $338 million, respectively, representing 3.6% and 2.9% 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 NAIC designation of 3 (medium investment grade), 4 or 5 (below investment grade) or 6 (in or near default). As of June 30, 2021 and December 31, 2020, respectively, approximately $2.7 billion and $2.4 billion, or 4.1% and 3.6%, of the $65.5 billion and $68.1 billion aggregate amortized cost of fixed maturities held by the Company were considered to be other than investment grade. These securities had gross unrealized losses of $21 million and $48 million as of June 30, 2021 and December 31, 2020, respectively. As of June 30, 2021 and December 31, 2020, respectively, the $18 million and $39 million of gross unrealized losses of twelve months or more were primarily concentrated in corporate securities. In accordance with the policy described in Note 2, the Company concluded that an adjustment to allowance for credit losses for these securities was not warranted at either June 30, 2021 or December 31, 2020. As of June 30, 2021 and December 31, 2020, 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. Based on the Company’s evaluation both qualitatively and quantitatively of the drivers of the decline in fair value of fixed maturity securities as of June 30, 2021, the Company determined that the unrealized loss was primarily due to increases in credit spreads and changes in credit ratings. Mortgage Loans on Real Estate Accrued interest receivable on commercial and agricultural mortgage loans as of June 30, 2021 was $31 million and $27 million, respectively. There was no accrued interest written off for commercial and agricultural mortgage loans for the three and six months ended June 30, 2021. As of June 30, 2021, the Company had no loans for which foreclosure was probable included within the individually assessed mortgage loans, and accordingly had no associated allowance for credit losses. Allowance for Credit Losses on Mortgage Loans The change in the allowance for credit losses for commercial mortgage loans and agricultural mortgage loans during the three months ended June 30, 2021 and 2020 were as follows: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (in millions) Allowance for credit losses on mortgage loans: Commercial mortgages: Balance, beginning of period $ 70 $ 43 $ 77 $ 33 Current-period provision for expected credit losses (11) 19 (18) 29 Write-offs charged against the allowance — — — 0 Recoveries of amounts previously written off — — — 0 Net change in allowance (11) 19 (18) 29 Balance, end of period $ 59 $ 62 $ 59 $ 62 Agricultural mortgages: Balance, beginning of period $ 4 $ 3 $ 4 $ 3 Current-period provision for expected credit losses — 1 — 1 Write-offs charged against the allowance — — — — Recoveries of amounts previously written off — — — — Net change in allowance — 1 — 1 Balance, end of period $ 4 $ 4 $ 4 $ 4 Total allowance for credit losses $ 63 $ 66 $ 63 $ 66 The change in the allowance for credit losses is attributable to: • increases/decreases in the loan balance due to new originations, maturing mortgages, and loan amortization; • changes in credit quality; and • changes in market assumptions primarily related to COVID-19 driven economic changes. Credit Quality Information The following tables summarize the Company’s mortgage loans segregated by risk rating exposure as of June 30, 2021 and December 31, 2020. LTV Ratios (1) June 30, 2021 Amortized Cost Basis by Origination Year 2021 2020 2019 2018 2017 Prior Total (in millions) Mortgage loans: Commercial: 0% - 50% $ — $ — $ — $ 184 $ 324 $ 768 $ 1,276 50% - 70% 616 1,242 377 619 701 3,536 7,091 70% - 90% — 320 457 451 176 752 2,156 90% plus — — — 12 5 207 224 Total commercial $ 616 $ 1,562 $ 834 $ 1,266 $ 1,206 $ 5,263 $ 10,747 Agricultural: 0% - 50% $ 92 $ 219 $ 130 $ 137 $ 131 $ 814 $ 1,523 50% - 70% 151 271 109 145 91 376 1,143 70% - 90% — — — — — 17 17 90% plus — — — — — — — Total agricultural $ 243 $ 490 $ 239 $ 282 $ 222 $ 1,207 $ 2,683 Total mortgage loans: 0% - 50% $ 92 $ 219 $ 130 $ 321 $ 455 $ 1,582 $ 2,799 50% - 70% 767 1,513 486 764 792 3,912 8,234 70% - 90% — 320 457 451 176 769 2,173 90% plus — — — 12 5 207 224 Total mortgage loans $ 859 $ 2,052 $ 1,073 $ 1,548 $ 1,428 $ 6,470 $ 13,430 Debt Service Coverage Ratios (2) June 30, 2021 Amortized Cost Basis by Origination Year 2021 2020 2019 2018 2017 Prior Total (in millions) Mortgage loans: Commercial: Greater than 2.0x $ 345 $ 1,170 $ 410 $ 772 $ 343 $ 3,070 $ 6,110 1.8x to 2.0x 131 227 174 117 423 389 1,461 1.5x to 1.8x — 105 75 187 177 660 1,204 1.2x to 1.5x — 60 75 102 148 571 956 1.0x to 1.2x 140 — 44 40 — 156 380 Less than 1.0x — — 56 48 115 417 636 Total commercial $ 616 $ 1,562 $ 834 $ 1,266 $ 1,206 $ 5,263 $ 10,747 Agricultural: Greater than 2.0x $ 31 $ 67 $ 25 $ 22 $ 33 $ 232 $ 410 1.8x to 2.0x 35 38 26 23 14 78 214 1.5x to 1.8x 42 114 30 29 40 206 461 1.2x to 1.5x 95 182 117 124 78 397 993 1.0x to 1.2x 40 85 32 79 56 256 548 Less than 1.0x — 4 9 5 1 38 57 Total agricultural $ 243 $ 490 $ 239 $ 282 $ 222 $ 1,207 $ 2,683 Total mortgage loans: June 30, 2021 Amortized Cost Basis by Origination Year 2021 2020 2019 2018 2017 Prior Total (in millions) Greater than 2.0x $ 376 $ 1,237 $ 435 $ 794 $ 376 $ 3,302 $ 6,520 1.8x to 2.0x 166 265 200 140 437 467 1,675 1.5x to 1.8x 42 219 105 216 217 866 1,665 1.2x to 1.5x 95 242 192 226 226 968 1,949 1.0x to 1.2x 180 85 76 119 56 412 928 Less than 1.0x — 4 65 53 116 455 693 Total mortgage loans $ 859 $ 2,052 $ 1,073 $ 1,548 $ 1,428 $ 6,470 $ 13,430 _____________ (1) The LTV ratio is derived from current loan balance divided by the fair value of the property. The fair value of the underlying commercial properties is updated annually for each mortgage loan. (2) The DSC ratio is calculated using the most recently reported operating income results from property operations divided by annual debt service. LTV Ratios (1) December 31, 2020 Amortized Cost Basis by Origination Year 2020 2019 2018 2017 2016 Prior Total (in millions) Mortgage loans: Commercial: 0% - 50% $ — $ — $ — $ 324 $ 170 $ 505 $ 999 50% - 70% 1,294 357 803 656 2,190 1,697 6,997 70% - 90% 321 457 452 219 203 538 2,190 90% plus — — 12 5 — 288 305 Total commercial $ 1,615 $ 814 $ 1,267 $ 1,204 $ 2,563 $ 3,028 $ 10,491 Agricultural: 0% - 50% $ 218 $ 135 $ 169 $ 157 $ 236 $ 652 $ 1,567 50% - 70% 277 129 161 102 124 351 1,144 70% - 90% — — 3 — — 18 21 90% plus — — — — — — — Total agricultural $ 495 $ 264 $ 333 $ 259 $ 360 $ 1,021 $ 2,732 Total mortgage loans: 0% - 50% $ 218 $ 135 $ 169 $ 481 $ 406 $ 1,157 $ 2,566 50% - 70% 1,571 486 964 758 2,314 2,048 8,141 70% - 90% 321 457 455 219 203 556 2,211 90% plus — — 12 5 — 288 305 Total mortgage loans $ 2,110 $ 1,078 $ 1,600 $ 1,463 $ 2,923 $ 4,049 $ 13,223 Debt Service Coverage Ratios (2) December 31, 2020 Amortized Cost Basis by Origination Year 2020 2019 2018 2017 2016 Prior Total (in millions) Mortgage loans: Commercial: Greater than 2.0x $ 1,230 $ 492 $ 772 $ 268 $ 1,942 $ 1,230 $ 5,934 1.8x to 2.0x 227 83 118 378 184 329 1,319 1.5x to 1.8x 98 138 187 479 437 616 1,955 1.2x to 1.5x 60 57 154 79 — 658 1,008 1.0x to 1.2x — 44 — — — 123 167 Less than 1.0x — — 36 — — 72 108 Total commercial $ 1,615 $ 814 $ 1,267 $ 1,204 $ 2,563 $ 3,028 $ 10,491 Agricultural: Greater than 2.0x $ 67 $ 26 $ 36 $ 38 $ 71 $ 167 $ 405 1.8x to 2.0x 38 35 14 15 20 82 204 1.5x to 1.8x 117 38 41 45 52 209 502 1.2x to 1.5x 183 120 141 90 142 313 989 1.0x to 1.2x 86 35 93 70 57 233 574 Less than 1.0x 4 10 8 1 18 17 58 Total agricultural $ 495 $ 264 $ 333 $ 259 $ 360 $ 1,021 $ 2,732 Total mortgage loans: Greater than 2.0x $ 1,297 $ 518 $ 808 $ 306 $ 2,013 $ 1,397 $ 6,339 1.8x to 2.0x 265 118 132 393 204 411 1,523 1.5x to 1.8x 215 176 228 524 489 825 2,457 1.2x to 1.5x 243 177 295 169 142 971 1,997 1.0x to 1.2x 86 79 93 70 57 356 741 Less than 1.0x 4 10 44 1 18 89 166 Total mortgage loans $ 2,110 $ 1,078 $ 1,600 $ 1,463 $ 2,923 $ 4,049 $ 13,223 _____________ (1) The LTV ratio is derived from current loan balance divided by the fair value of the property. The fair value of the underlying commercial properties is updated annually for each mortgage loan. (2) The DSC ratio is calculated using the most recently reported operating income results from property operations divided by annual debt service. The following tables provide information relating to the LTV and DSC ratios for commercial and agricultural mortgage loans as of June 30, 2021 and December 31, 2020. 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 LTV and DSC Ratios DSC Ratio (2) (3) LTV Ratio (1) (3): Greater than 2.0x 1.8x to 2.0x 1.5x to 1.8x 1.2x to 1.5x 1.0x to 1.2x Less than 1.0x Total (in millions) June 30, 2021: Mortgage loans: Commercial: 0% - 50% $ 959 $ — $ 277 $ — $ 40 $ — $ 1,276 50% - 70% 4,356 1,026 726 585 197 201 7,091 70% - 90% 795 435 201 311 143 271 2,156 90% plus — — — 60 — 164 224 Total commercial $ 6,110 $ 1,461 $ 1,204 $ 956 $ 380 $ 636 $ 10,747 Agricultural: 0% - 50% $ 300 $ 98 $ 289 $ 505 $ 303 $ 28 $ 1,523 50% - 70% 110 114 172 488 245 14 1,143 70% - 90% — 2 — — — 15 17 90% plus — — — — — — — Total agricultural $ 410 $ 214 $ 461 $ 993 $ 548 $ 57 $ 2,683 Total mortgage loans: 0% - 50% $ 1,259 $ 98 $ 566 $ 505 $ 343 $ 28 $ 2,799 50% - 70% 4,466 1,140 898 1,073 442 215 8,234 70% - 90% 795 437 201 311 143 286 2,173 90% plus — — — 60 — 164 224 Total mortgage loans $ 6,520 $ 1,675 $ 1,665 $ 1,949 $ 928 $ 693 $ 13,430 December 31, 2020: Mortgage loans: Commercial: 0% - 50% $ 839 $ — $ 160 $ — $ — $ — $ 999 50% - 70% 4,095 870 1,452 555 25 — 6,997 70% - 90% 844 449 343 376 142 36 2,190 90% plus 156 — — 77 — 72 305 Total commercial $ 5,934 $ 1,319 $ 1,955 $ 1,008 $ 167 $ 108 $ 10,491 Agricultural: 0% - 50% $ 297 $ 108 $ 291 $ 520 $ 317 $ 34 $ 1,567 50% - 70% 108 94 211 450 257 24 1,144 70% - 90% — 2 — 19 — — 21 90% plus — — — — — — — Total agricultural $ 405 $ 204 $ 502 $ 989 $ 574 $ 58 $ 2,732 DSC Ratio (2) (3) LTV Ratio (1) (3): Greater than 2.0x 1.8x to 2.0x 1.5x to 1.8x 1.2x to 1.5x 1.0x to 1.2x Less than 1.0x Total (in millions) Total mortgage loans: 0% - 50% $ 1,136 $ 108 $ 451 $ 520 $ 317 $ 34 $ 2,566 50% - 70% 4,203 964 1,663 1,005 282 24 8,141 70% - 90% 844 451 343 395 142 36 2,211 90% plus 156 — — 77 — 72 305 Total mortgage loans $ 6,339 $ 1,523 $ 2,457 $ 1,997 $ 741 $ 166 $ 13,223 ______________ (1) The LTV ratio is derived from current loan balance divided by the fair value of the property. The fair value of the underlying commercial properties is updated annually for each mortgage loan. (2) The DSC ratio is calculated using the most recently reported operating income results from property operations divided by annual debt service. (3) Amounts presented at amortized cost basis. Past-Due and Nonaccrual Mortgage Loan Status The following table provides information relating to the aging analysis of past-due mortgage loans as of June 30, 2021 and December 31, 2020, respectively: Age Analysis of Past Due Mortgage Loans (1) Accruing Loans Non-accruing Loans Total Loans Non-accruing Loans with No Allowance Interest Income on Non-accruing Loans Past Due Current Total 30-59 Days 60-89 Days 90 Days or More Total (in millions) June 30, 2021: Mortgage loans: Commercial $ — $ — $ — $ — $ 10,747 $ 10,747 $ — $ 10,747 $ — $ — Agricultural 6 — 74 80 2,603 2,683 — 2,683 — — Total $ 6 $ — $ 74 $ 80 $ 13,350 $ 13,430 $ — $ 13,430 $ — $ — December 31, 2020: Mortgage loans: Commercial $ 162 $ — $ — $ 162 $ 10,329 $ 10,491 $ — $ 10,491 $ — $ — Agricultural 76 7 29 112 2,620 2,732 — 2,732 — — Total $ 238 $ 7 $ 29 $ 274 $ 12,949 $ 13,223 $ — $ 13,223 $ — $ — _______________ (1) Amounts presented at amortized cost basis. As of June 30, 2021 and December 31, 2020, the carrying values of problem mortgage loans that had been classified as non-accrual loans were $0 million and $0 million, respectively. Troubled Debt Restructuring During the three and six months ended June 30, 2021, the Company had one new privately negotiated fixed maturity TDR with a pre-modification cost basis of $9 million and post-modification carrying value of $5 million. This TDR did not have subsequent payment defaults nor additional commitments to lend. The one privately negotiated fixed maturity TDR is 0.01% of the Company’s total invested assets. There were no mortgage loan on real estate accounted for as a TDR during three and six months ended June 30, 2021 . During the three and six months ended June 30, 2020, the Company had four new privately negotiated fixed maturity TDRs with a pre-modification cost basis of $42 million and post-modification carrying value of $37 million. These TDRs did not have subsequent payment defaults nor additional commitments to lend. The four privately negotiated fixed maturity TDRs wer e 0.04% of the Company’s total invested assets. There were no mortgage loan on real estate accounted for as a TDR during three and six months ended June 30, 2020. Equity Securities The table below presents a breakdown of unrealized and realized gains and (losses) on equity securities during the three and six months ended June 30, 2021. Unrealized and Realized Gains (Losses) from Equity Securities (1) Three Months Ended June 30, Six Months Ended June 30, 2021 2021 (in millions) Net investment gains (losses) recognized during the period on securities held at the end of the period $ 3 $ 20 Net investment gains (losses) recognized on securities sold during the period 10 4 Unrealized and realized gains (losses) on equity securities $ 13 $ 24 ______________ (1) Effective January 1, 2021, certain preferred stock have been reclassified to other equity investments (see Note 2 Significant Accounting Policies – Investments). Trading Securities As of June 30, 2021 and December 31, 2020, respectively, the fair value of the Company’s trading securities was $855 million and $5.3 billion. As of June 30, 2021 and December 31, 2020, respectively, trading securities included the General Account’s investment in Separate Accounts, which had carrying values of $44 million and $43 million. The table below shows a breakdown of net investment income (loss) from trading securities during the three and six months ended June 30, 2021 and 2020: Net Investment Income (Loss) from Trading Securities Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (in millions) Net investment gains (losses) recognized during the period on securities held at the end of the period $ (168) $ 250 $ (217) $ 87 Net investment gains (losses) recognized on securities sold during the period 153 14 175 17 Unrealized and realized gains (losses) on trading securities (15) 264 (42) 104 Interest and dividend income from trading securities 40 45 76 94 Net investment income (loss) from trading securities $ 25 $ 309 $ 34 $ 198 |
DERIVATIVES
DERIVATIVES | 6 Months Ended |
Jun. 30, 2021 | |
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 TIPS, which is discussed further below. Operation of these hedging programs is based on models involving numerous estimates and assumptions, including, among others, mortality, lapse, surrender and withdrawal rates, election rates, fund performance, market volatility and interest rates. A wide range of derivative contracts are used in these hedging programs, including exchange traded equity, currency and interest rate futures contracts, total return and/or other equity swaps, interest rate swap and floor contracts, bond and bond-index total return swaps, swaptions, variance swaps and equity options, credit and foreign exchange derivatives, as well as bond and repo transactions to support the hedging. The derivative contracts are collectively managed in an effort to reduce the economic impact of unfavorable changes in guaranteed benefits’ exposures attributable to movements in capital markets. In addition, as part of 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 experience 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 reinsurance of the GMIB features is accounted for as a derivative. In addition, on June 1, 2021, we ceded legacy variable annuity policies sold by the Company between 2006-2008 (the “Block”), comprised of non-New York “Accumulator” policies containing fixed rate GMIB and/or GMDB guarantees. As this contract provides full risk transfer, the benefits of this treaty are accounted for in the same manner as the underlying gross reserves and therefore the Amounts Due from Reinsurers related to the GMIB with NLG are accounted for as an embedded derivative. The Company has in place an economic hedge program using interest rate swaps and U.S. 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 SCS variable annuity, SIO in the EQUI-VEST variable annuity series, MSO in the variable life insurance products and IUL insurance products. These products permit the contract owner to participate in the performance of an index, ETF or commodity price movement up to a cap for a set period of time. They also contain a protection feature, in which the Company will absorb, up to a certain percentage, the loss of value in an index, ETF or commodity price, which varies by product segment. In order to support the returns associated with these features, the Company enters into derivative contracts whose payouts, in combination with fixed income investments, emulate those of the index, ETF or commodity price, subject to caps and buffers, 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 to Hedge ULSG Policy The Company implemented a hedge program using fixed income total return swaps to mitigate the interest rate exposure in the ULSG policy statutory liability. 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 CDS. Under the terms of these swaps, the Company receives quarterly fixed premiums that, together with any initial amount paid or received at trade inception, replicate the credit spread otherwise currently obtainable by purchasing the referenced entity’s bonds of similar maturity. These credit derivatives generally have remaining terms of five years or less and are recorded at fair value with changes in fair value, including the yield component that emerges from initial amounts paid or received, reported in net 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 CDS 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 its 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. The Company purchased CDS to mitigate its exposure to a reference entity through cash positions. These positions do not replicate credit spreads. 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 the CDS that it sold. The maximum potential amount of future payments the Company could be required to make under the credit derivatives sold is limited to the par value of the referenced securities which is the dollar or euro-equivalent of the derivative’s notional amount. The Standard North American CDS Contract or Standard European Corporate Contract 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. Derivatives Utilized to Hedge Exposure to Foreign Currency Denominated Cash Flows The Company purchases private placement debt securities and issues funding agreements in the FABN program in currencies other than its functional US dollar currency. The Company enters into cross currency swaps with external counterparties to hedge the exposure of the foreign currency denominated cash flows of these instruments. The foreign currency received from or paid to the cross currency swap counterparty is exchanged for fixed US dollar amounts with improved net investment yields or net product costs over equivalent US dollar denominated instruments issued at that time. The transactions are accounted for as cash flow hedges when they are designated in hedging relationships and qualify for hedge accounting. The first cross currency swap hedges were designated and applied hedge accounting during the quarter ended June 30, 2021. These cross currency swaps are for the period the foreign currency denominated private placement debt securities and funding agreement are outstanding, with the longest cross currency swap expiring in 2033. Since designation and qualification as cash flow hedges, cross currency swap interest accruals are recognized in Net investment income and in Interest credited to policyholders’ account balances. Other changes in fair value of $18 million losses were deferred in OCI, $17 million loss were released from AOCI to increase Interest credited to policyholders’ account balances offsetting the foreign currency gain recognized on the foreign currency denominated funding agreements. The Company does not have an estimate of the amount of the deferred losses of $2 million in AOCI at June 30, 2021 for the cross currency swaps which will be released and reclassified into Net income (loss) over the next 12 months. The tables below present quantitative disclosures about the Company’s derivative instruments which have not been designated in hedging relationships, including those embedded in other contracts required to be accounted for as derivative instruments. Derivative Instruments by Category June 30, 2021 Six Months Ended June 30, 2021 Fair Value Notional Derivative Assets Derivative Net Derivative (in millions) Derivative instruments: Freestanding derivatives (1): Equity contracts: Futures $ 2,927 $ — $ — $ (459) Swaps 13,308 4 — (2,606) Options 54,224 11,007 4,604 2,344 Interest rate contracts: Swaps (8) 6,292 75 575 (2,470) Futures 9,550 — — (796) Swaptions — — — — Credit contracts: Credit default swaps 766 5 2 2 Other freestanding contracts: Foreign currency contracts 1,305 2 19 — Margin — 46 — — Collateral — 145 5,872 — Embedded derivatives: Amounts due from reinsurers (9) — 5,510 — 242 GMIB reinsurance contracts (3) — 2,290 — (566) GMxB derivative features liability (4) — — 8,455 2,686 SCS, SIO, MSO and IUL indexed features (5) — — 5,955 (2,286) Total derivative instruments $ 88,372 $ 19,084 $ 25,482 Net derivative gains (losses) (6) $ (3,909) ______________ (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 GMIB reinsurance contract asset in the consolidated balance sheets. (4) Reported in future policy benefits and other policyholders’ liabilities in the consolidated balance sheets. (5) Reported in policyholders’ account balances in the consolidated balance sheets. (6) Investment fees of $7 million are reported in net derivative gains (losses) in the consolidated statements of income (loss). (7) Decrease in futures and swaps notional as of June 30, 2021 primarily due to the Venerable transaction (see Note 1 Organization). (8) Includes the balance and results of the swaps used to hedge TIPS bonds except for the amount currently deferred in OCI. (9) Represents GMIB NLG ceded related to the Venerable transaction. Derivative Instruments by Category December 31, 2020 Six Months Ended June 30, 2020 Fair Value Notional Derivative Assets Derivative Liabilities Net Derivative Gains (Losses) (2) (in millions) Derivative instruments: Freestanding derivatives (1): Equity contracts: Futures $ 4,267 $ — $ — $ (126) Swaps 22,404 6 — 963 Options 35,786 8,383 3,715 (1,387) Interest rate contracts: Swaps (7) 23,773 551 653 3,658 Futures 18,161 — — 2,072 Swaptions — — — 9 Credit contracts: Credit default swaps 919 8 1 (7) Other freestanding contracts: Foreign currency contracts 347 — — (3) Margin — 26 66 — Collateral — 212 3,835 — Embedded derivatives: GMIB reinsurance contracts (3) — 2,859 — 1,026 GMxB derivative features liability (4) — — 10,936 (3,952) SCS, SIO, MSO and IUL indexed features (5) — — 4,378 1,377 Total derivative instruments $ 105,657 $ 12,045 $ 23,584 Net derivative gains (losses) $ 3,630 ______________ (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 GMIB reinsurance contract asset in the consolidated balance sheets. (4) Reported in future policy benefits and other policyholders’ liabilities in the consolidated balance sheets. (5) Reported in policyholders’ account balances in the consolidated balance sheets. (6) Investment fees of $6 million are reported in net derivative gains (losses) in the consolidated statements of income (loss). (7) Includes the balance and results of the swaps used to hedge TIPS bonds except for the amount currently deferred in OCI. Equity-Based and Treasury Futures Contracts Margin All outstanding equity-based and treasury futures contracts as of June 30, 2021 and December 31, 2020 are exchange-traded and net settled daily in cash. As of June 30, 2021 and December 31, 2020, respectively, the Company had open exchange-traded futures positions on: (i) the S&P 500, Nasdaq, Russell 2000 and Emerging Market indices, having initial margin requirements of $138 million and $135 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 $53 million and $263 million, and (iii) the Euro Stoxx, FTSE 100, Topix, ASX 200 and 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 $16 million and $35 million. Collateral Arrangements The Company generally has executed a CSA under the ISDA Master Agreement it maintains with each of its 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. As of June 30, 2021 and December 31, 2020, respectively, the Company held $5.9 billion and $3.8 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 $0.1 billion and $212 million as of June 30, 2021 and December 31, 2020, respectively, in the normal operation of its collateral arrangements. The following tables presents information about the Company’s offsetting of financial assets and liabilities and derivative instruments as of June 30, 2021 and December 31, 2020: Offsetting of Financial Assets and Liabilities and Derivative Instruments As of June 30, 2021 Gross Amount Recognized Gross Amount Offset in the Balance Sheets Net Amount Presented in the Balance Sheets Gross Amount not Offset in the Balance Sheets (1) Net Amount (in millions) Assets: Derivative assets $ 11,283 $ 10,199 $ 1,084 $ (823) $ 261 Other financial assets 1,423 — 1,423 — 1,423 Other invested assets $ 12,706 $ 10,199 $ 2,507 $ (823) $ 1,684 Liabilities: Derivative liabilities $ 10,250 $ 10,199 $ 51 $ — $ 51 Other financial liabilities 2,073 — 2,073 — 2,073 Other liabilities $ 12,323 $ 10,199 $ 2,124 $ — $ 2,124 ______________ (1) Financial instruments sent (held). As of December 31, 2020 Gross Amount Recognized Gross Amount Offset in the Balance Sheets Net Amount Presented in the Balance Sheets Gross Amount not Offset in the Balance Sheets (1) Net Amount (in millions) Assets: Derivative assets $ 9,186 $ 8,206 $ 980 $ (53) $ 927 Other financial instruments 1,403 — 1,403 — 1,403 Other invested assets $ 10,589 $ 8,206 $ 2,383 $ (53) $ 2,330 Liabilities: Derivative liabilities $ 8,218 $ 8,206 $ 12 $ — $ 12 Other financial liabilities 1,568 — 1,568 — 1,568 Other liabilities $ 9,786 $ 8,206 $ 1,580 $ — $ 1,580 ______________ (1) Financial instruments sent (held). |
CLOSED BLOCK
CLOSED BLOCK | 6 Months Ended |
Jun. 30, 2021 | |
Closed Block Disclosure [Abstract] | |
CLOSED BLOCK | CLOSED BLOCKAs a result of demutualization, the Company’s Closed Block was established in 1992 for the benefit of certain individual participating policies that were in force on that date. Assets, liabilities and earnings of the Closed Block are specifically identified to support its participating policyholders.Assets allocated to the Closed Block inure solely to the benefit of the Closed Block policyholders and will not revert to the benefit of the Company. No reallocation, transfer, borrowing or lending of assets can be made between the Closed Block and other portions of the Company’s General Account, any of its Separate Accounts or any affiliate of the Company without the approval of the New York State Department of Financial Services (the “NYDFS”). Closed Block assets and liabilities are carried on the same basis as similar assets and liabilities held in the General Account. For more information on the Closed Block, see Note 5 to the Company’s consolidated financial statements included in the Annual Report on Form 10-K for the year ended December 31, 2020 Summarized financial information for the Company’s Closed Block is as follows: June 30, 2021 December 31, 2020 (in millions) Closed Block Liabilities: Future policy benefits, policyholders’ account balances and other $ 6,059 $ 6,201 Policyholder dividend obligation 72 160 Other liabilities 76 39 Total Closed Block liabilities 6,207 6,400 Assets Designated to the Closed Block: Fixed maturities AFS, at fair value (amortized cost of $3,350 and $3,359) (allowance for credit losses of $0) 3,629 3,718 Mortgage loans on real estate (net of allowance for credit losses of $5 and $6) 1,767 1,773 Policy loans 630 648 Cash and other invested assets 8 28 Other assets 117 169 Total assets designated to the Closed Block 6,151 6,336 Excess of Closed Block liabilities over assets designated to the Closed Block 56 64 Amounts included in AOCI: Net unrealized investment gains (losses), net of policyholders’ dividend obligation: $72 and $160; and net of income tax: $(44) and $(42) 174 167 Maximum future earnings to be recognized from Closed Block assets and liabilities $ 230 $ 231 The Company’s Closed Block revenues and expenses were as follows: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (in millions) Revenues: Premiums and other income $ 37 $ 40 $ 76 $ 82 Net investment income (loss) 60 63 120 129 Investment gains (losses), net 2 (2) 2 (2) Total revenues 99 101 198 209 Benefits and Other Deductions: Policyholders’ benefits and dividends 90 103 196 206 Other operating costs and expenses — 1 1 1 Total benefits and other deductions 90 104 197 207 Net income (loss), before income taxes 9 (3) 1 2 Income tax (expense) benefit — (1) (1) (1) Net income (loss) $ 9 $ (4) $ — $ 1 A reconciliation of the Company’s policyholder dividend obligation follows: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (in millions) Beginning balance $ 28 $ 2 $ 160 $ 2 Unrealized investment gains (losses) 44 — (88) — Ending balance $ 72 $ 2 $ 72 $ 2 |
INSURANCE LIABILITIES
INSURANCE LIABILITIES | 6 Months Ended |
Jun. 30, 2021 | |
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 NLG Rider Feature The change in the liabilities for variable annuity contracts with GMDB and GMIB features and without a NLG feature are summarized in the tables below. The amounts for the direct contracts (before reinsurance ceded) and assumed contracts 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. The amounts for the ceded IB are reflected in the consolidated balance sheets in GMIB reinsurance contract asset, at fair value. Change in Liability for Variable Annuity Contracts with GMDB and GMIB Features and No NLG Feature Three and Six Months Ended June 30, 2021 and 2020 GMDB GMIB Direct Ceded Direct Ceded (in millions) Balance, April 1, 2021 $ 5,083 $ (81) $ 5,966 $ (2,133) Paid guarantee benefits (114) 19 (93) 13 Other changes in reserve 171 (43) 72 (183) Impact of the Venerable transaction (1) — (2,176) — (2,141) Balance, June 30, 2021 $ 5,140 $ (2,281) $ 5,945 $ (4,444) Balance, April 1, 2020 $ 5,041 $ (105) $ 6,272 $ (3,305) Paid guarantee benefits (140) 4 (103) 17 Other changes in reserve 97 3 (48) (145) Balance, June 30, 2020 $ 4,998 $ (98) $ 6,121 $ (3,433) GMDB GMIB Direct Ceded Direct Ceded (in millions) Balance, January 1, 2021 $ 5,093 $ (84) $ 6,025 $ (2,859) Paid guarantee benefits (247) 23 (184) 26 Other changes in reserve 294 (44) 104 530 Impact of the Venerable transaction (1) — (2,176) — (2,141) Balance, June 30, 2021 $ 5,140 $ (2,281) $ 5,945 $ (4,444) Balance, January 1, 2020 $ 4,775 $ (99) $ 4,671 $ (2,466) Paid guarantee benefits (251) 9 (177) 37 Other changes in reserve 474 (8) 1,627 (1,004) Balance, June 30, 2020 $ 4,998 $ (98) $ 6,121 $ (3,433) ____________ (1) Includes the impact as of June 1, 2021 on the ceded reserves to Venerable. See Note 1- Organization, for details on the Venerable transaction. Liabilities for Embedded and Freestanding Insurance Related Derivatives The liability for the GMxB derivative features, the liability for SCS, SIO, MSO and IUL indexed features and the asset and liability for the GMIB reinsurance contracts and amounts due from reinsurers related to GMIB NLG product features (GMIB NLG Reinsurance) 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 Fair Value Disclosures. Account Values and Net Amount at Risk Account Values and NAR for direct variable annuity contracts in force with GMDB and GMIB features as of June 30, 2021 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 as of June 30, 2021 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 $ 15,874 $ 85 $ 53 $ 161 $ 16,173 Separate Accounts 58,239 9,937 3,450 35,088 106,714 Total Account Values $ 74,113 $ 10,022 $ 3,503 $ 35,249 $ 122,887 NAR, gross $ 91 $ 28 $ 1,406 $ 15,645 $ 17,170 NAR, net of amounts reinsured $ 88 $ 24 $ 983 $ 7,918 $ 9,013 Average attained age of policyholders (in years) 51.4 68.7 75.2 70.6 55.3 Percentage of policyholders over age 70 11.5% 50.0% 71.4% 55.9% 20.5% 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 $ — $ — $ 16 $ 211 $ 227 Separate Accounts — — 26,142 37,582 63,724 Total Account Values $ — $ — $ 26,158 $ 37,793 $ 63,951 NAR, gross $ — $ — $ 669 $ 8,793 $ 9,462 NAR, net of amounts reinsured $ — $ — $ 215 $ 3,605 $ 3,820 Average attained age of policyholders (in years) N/A N/A 64.6 70.5 68.3 Weighted average years remaining until annuitization N/A N/A 5.7 0.6 2.5 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” in Note 10 of the 2020 Form 10-K. 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 June 30, 2021 December 31, 2020 Mutual Fund Type GMDB GMIB GMDB GMIB (in millions) Equity $ 51,366 $ 20,039 $ 46,850 $ 18,771 Fixed income 5,451 2,607 5,506 2,701 Balanced 48,804 40,811 47,053 39,439 Other 1,093 267 1,111 275 Total $ 106,714 $ 63,724 $ 100,520 $ 61,186 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 NLG liabilities, reflected in future policy benefits and other policyholders’ liabilities in the consolidated balance sheets, is summarized in the table below. 2021 2020 Direct Liability Reinsurance Ceded Net Direct Liability Reinsurance Ceded Net (in millions) Balance, April 1, $ 1,045 $ (901) $ 144 $ 920 $ (827) $ 93 Paid guarantee benefits (13) — (13) (13) — (13) Other changes in reserves 32 (8) 24 34 (14) 20 Balance, June 30, $ 1,064 $ (909) $ 155 $ 941 $ (841) $ 100 Balance, January 1, $ 1,016 $ (883) $ 133 $ 894 $ (808) $ 86 Paid guarantee benefits (28) — (28) (26) — (26) Other changes in reserves 76 (26) 50 73 (33) 40 Balance, June 30, $ 1,064 $ (909) $ 155 $ 941 $ (841) $ 100 |
FAIR VALUE DISCLOSURES
FAIR VALUE DISCLOSURES | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE DISCLOSURES | FAIR VALUE DISCLOSURES U.S. GAAP 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 Nonrecurring Basis Fair value measurements are required on a non-recurring basis for certain assets only when an impairment or other events occur. For the periods ended June 30, 2021 and December 31, 2020, no assets or liabilities were required to be measured at fair value on a non-recurring basis. Assets and Liabilities Measured at Fair Value on a Recurring Basis Assets and liabilities measured at fair value on a recurring basis are summarized below. Fair Value Measurements as of June 30, 2021 Level 1 Level 2 Level 3 Total (in millions) Assets: Investments: Fixed maturities, AFS: Corporate (1) $ — $ 44,686 $ 1,249 $ 45,935 U.S. Treasury, government and agency — 16,298 — 16,298 States and political subdivisions — 537 37 574 Foreign governments — 952 — 952 Residential mortgage-backed (2) — 109 — 109 Asset-backed (3) — 4,777 127 4,904 Commercial mortgage-backed — 1,584 11 1,595 Redeemable preferred stock — 84 — 84 Total fixed maturities, AFS — 69,027 1,424 70,451 Other equity investments 302 247 3 552 Trading securities 223 632 — 855 Other invested assets: Short-term investments — 5 1 6 Assets of consolidated VIEs/VOEs — — 10 10 Swaps — (513) — (513) Credit default swaps — 3 — 3 Options — 6,403 — 6,403 Total other invested assets — 5,898 11 5,909 Cash equivalents 895 308 — 1,203 Amounts due from reinsurer (5) — — 5,510 5,510 GMIB reinsurance contracts asset — — 2,290 2,290 Separate Accounts assets (4) 139,412 2,585 1 141,998 Total Assets $ 140,832 $ 78,697 $ 9,239 $ 228,768 Liabilities: GMxB derivative features’ liability $ — $ — $ 8,455 $ 8,455 SCS, SIO, MSO and IUL indexed features’ liability — 5,955 — 5,955 Total Liabilities $ — $ 5,955 $ 8,455 $ 14,410 ______________ (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, credit risk transfer securities and other asset types. (4) Separate Accounts assets included in the fair value hierarchy exclude investments in entities that calculate NAV per share (or its equivalent) as a practical expedient. Such investments excluded from the fair value hierarchy include investments in real estate. As of June 30, 2021 the fair value of such investments was $379 million. (5) This represents GMIB NLG ceded reserves related to Venerable transaction. See Note 1- Organization for details of the Venerable transaction. Fair Value Measurements as of December 31, 2020 Level 1 Level 2 Level 3 Total (in millions) Assets: Investments: Fixed maturities, AFS: Corporate (1) $ — $ 51,415 $ 1,687 $ 53,102 U.S. Treasury, government and agency — 15,943 — 15,943 States and political subdivisions — 535 39 574 Foreign governments — 1,103 — 1,103 Residential mortgage-backed (2) — 131 — 131 Asset-backed (3) — 3,636 20 3,656 Commercial mortgage-backed — 1,203 — 1,203 Redeemable preferred stock 402 239 — 641 Total fixed maturities, AFS 402 74,205 1,746 76,353 Other equity investments 13 — 2 15 Trading securities 285 5,055 — 5,340 Other invested assets: Short-term investments — 82 1 83 Assets of consolidated VIEs/VOEs — — 12 12 Swaps — (96) — (96) Credit default swaps — 7 — 7 Options — 4,668 — 4,668 Total other invested assets — 4,661 13 4,674 Cash equivalents 1,183 287 — 1,470 GMIB reinsurance contracts asset — — 2,859 2,859 Separate Accounts assets (4) 130,106 2,668 1 132,775 Total Assets $ 131,989 $ 86,876 $ 4,621 $ 223,486 Liabilities: GMxB derivative features’ liability $ — $ — $ 10,936 $ 10,936 SCS, SIO, MSO and IUL indexed features’ liability — 4,378 — 4,378 Total Liabilities $ — $ 4,378 $ 10,936 $ 15,314 ______________ (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) Separate Accounts assets included in the fair value hierarchy exclude investments in entities that calculate NAV per share (or its equivalent) as a practical expedient. Such investments excluded from the fair value hierarchy include investments in real estate and commercial mortgages. As of December 31, 2020 the fair value of such investments was $356 million. Public Fixed Maturities 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. Private Fixed Maturities 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. Freestanding Derivative Positions 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 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. Level Classifications of the Company’s Financial Instruments Financial Instruments Classified as Level 1 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. Financial Instruments Classified as Level 2 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, 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 classified as Level 2 embedded derivatives. The fair values of these embedded derivatives are based on data obtained from independent valuation service providers. Financial Instruments Classified as Level 3 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, net of 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. Also included are the Amounts due from Reinsurers related to the GMIB NLG product features (GMIB NLG Reinsurance). The fair value reflects the present value of reinsurance premiums, net of recoveries, adjusted for risk margins and nonperformance risk over a range of market consistent economic scenarios. The valuations of the GMIB reinsurance contract asset, GMIB NLG Reinsurance 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, GMIB NLG Reinsurance 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, GMIB NLG Reinsurance 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 and GMIB NLG Reinsurance , 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 $128 million and $160 million as of June 30, 2021 and December 31, 2020, respectively, to recognize incremental counterparty non-performance risk. After giving consideration to collateral arrangements, the Company reduced the fair value of its Amounts due from Reinsurers by $169 million at June 30, 2021 to recognize incremental counterparty non-performance risk. Lapse rates are adjusted at the contract level based on a comparison of the actuarial 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, primarily corporate bonds that are vendor priced with no ratings available, bank loans, non-agency collateralized mortgage obligations and asset-backed securities. Transfers of Financial Instruments Between Levels 2 and 3 During the six months ended June 30, 2021, fixed maturities with fair values of $713 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, fixed maturities with fair value of $2 million were transferred from Level 2 into the Level 3 classification. These transfers in the aggregate represent approximately 8.3% of total equity as of June 30, 2021. During the six months ended June 30, 2020, fixed maturities with fair values of $103 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, fixed maturities with fair value of $219 million were transferred from Level 2 into the Level 3 classification. These transfers in the aggregate represent approximately 2.1% of total equity as of June 30, 2020. The tables below present reconciliations for all Level 3 assets and liabilities for the three and six months ended June 30, 2021 and 2020, respectively. Level 3 Instruments - Fair Value Measurements Corporate State and Political Subdivisions CMBS Asset-backed (in millions) Balance, April 1, 2021 $ 1,242 $ 38 $ 4 $ 65 Total gains and (losses), realized and unrealized, included in: Net income (loss) as: Net investment income (loss) 2 — — — Investment gains (losses), net (7) — — — Subtotal (5) — — — Other comprehensive income (loss) 17 — — — Purchases 294 — 7 73 Sales (135) (1) — (11) Transfers into Level 3 (1) — — — — Transfers out of Level 3 (1) (164) — — — Balance, Balance, June 30, 2021 $ 1,249 $ 37 $ 11 $ 127 Balance, April 1, 2020 $ 1,174 $ 36 $ — $ 40 Total gains and (losses), realized and unrealized, included in: Net income (loss) as: Net investment income (loss) 1 — — — Investment gains (losses), net (11) — — — Subtotal (10) — — — Other comprehensive income (loss) 6 5 — 8 Purchases 284 — — (48) Sales (44) (1) — — Transfers into Level 3 (1) 219 — — — Transfers out of Level 3 (1) 23 — — — Balance, June 30, 2020 $ 1,652 $ 40 $ — $ — Corporate State and Political Subdivisions CMBS Asset-backed (in millions) Balance, January 1, 2021 $ 1,687 $ 39 $ — $ 20 Total gains and (losses), realized and unrealized, included in: Net income (loss) as: Net investment income (loss) 3 — — — Investment gains (losses), net (13) — — — Subtotal (10) — — — Other comprehensive income (loss) 26 (1) — — Purchases 459 — 11 123 Sales (202) (1) — (16) Transfers into Level 3 (1) 2 — — — Transfers out of Level 3 (1) (713) — — — Balance, June 30, 2021 $ 1,249 $ 37 $ 11 $ 127 Balance, January 1, 2020 $ 1,246 $ 39 $ — $ 100 Total gains and (losses), realized and unrealized, included in: Net income (loss) as: Net investment income (loss) 2 — — — Investment gains (losses), net (13) — — — Subtotal (11) — — — Other comprehensive income (loss) (54) 2 — — Purchases 345 — — — Sales (90) (1) — — Transfers into Level 3 (1) 219 — — — Transfers out of Level 3 (1) (3) — — (100) Balance, June 30, 2020 $ 1,652 $ 40 $ — $ — ______________ (1) Transfers into/out of the Level 3 classification are reflected at beginning-of-period fair values. Other Equity Investments Amounts Due from Reinsurers GMIB Reinsurance Contract Asset Separate Accounts Assets GMxB Derivative Features Liability (in millions) Balance, April 1, 2021 $ 12 $ — $ 2,133 $ — $ (7,681) Realized and unrealized gains (losses), included in Net income (loss) as: Investment gains (losses), net 2 242 — — — Net derivative gains (losses) (1) — 158 — (671) Total realized and unrealized gains (losses) 2 242 158 — (671) Other comprehensive income (loss) (1) — — — — Purchases (2) — 10 10 1 (118) Sales (3) — (1) (11) — 15 Other (5) — 5,259 — — — Activity related to consolidated VIEs/VOEs — — — — — Transfers into Level 3 (4) — — — — — Transfers out of Level 3 (4) — — — — — Balance, Balance, June 30, 2021 $ 13 $ 5,510 $ 2,290 $ 1 $ (8,455) Balance, April 1, 2020 $ 15 $ — $ 3,305 $ — $ (9,580) Realized and unrealized gains (losses), included in Net income (loss) as: Investment gains (losses), net — — — — — Net derivative gains (losses) — — 133 — (2,786) Total realized and unrealized gains (losses) — — 133 — (2,786) Other comprehensive income (loss) — — — — — Purchases (2) 1 — 12 — (107) Sales (3) — — (17) — 15 Settlements — — — — — Activity related to consolidated VIEs/VOEs — — — — — Transfers into Level 3 (4) — — — — — Transfers out of Level 3 (4) — — — — — Balance, June 30, 2020 $ 16 $ — $ 3,433 $ — $ (12,458) Other Equity Investments Amounts Due from Reinsurers GMIB Reinsurance Contract Asset Separate Accounts Assets GMxB Derivative Features Liability (in millions) Balance, January 1, 2021 $ 15 $ — $ 2,859 $ 1 $ (10,936) Realized and unrealized gains (losses), included in Net income (loss) as: Investment gains (losses), net 1 242 — — — Net derivative gains (losses) (1) — — (566) — 2,686 Total realized and unrealized gains (losses) 1 242 (566) — 2,686 Purchases (2) — 10 22 1 (235) Sales (3) — (1) (25) — 30 Settlements — — — — — Other (5) — 5,259 — — — Activity related to consolidated VIEs/VOEs (2) — — — — Transfers into Level 3 (4) — — — — — Transfers out of Level 3 (4) (1) — — (1) — Balance, June 30, 2021 $ 13 $ 5,510 $ 2,290 $ 1 $ (8,455) Balance, January 1, 2020 $ 16 $ — $ 2,466 $ — $ (8,316) Realized and unrealized gains (losses), included in Net income (loss) as: Investment gains (losses), net — — — — — Net derivative gains (losses) — — 1,026 — (3,952) Total realized and unrealized gains (losses) — — 1,026 — (3,952) Purchases (2) 1 — 23 — (215) Sales (3) — — (37) — 25 Settlements — — — — — Change in estimate — — (45) — — Activity related to consolidated VIEs/VOEs (1) — — — — Transfers into Level 3 (4) — — — — — Transfers out of Level 3 (4) — — — — — Balance, June 30, 2020 $ 16 $ — $ 3,433 $ — $ (12,458) ______________ (1) For the three and six months ended June 30, 2021, the Company’s non-performance risk impact of $(60) million and $24 million for the GMxB Derivative Features Liability, $17 million and $1 million for the GMIB Reinsurance Contract Asset, and $12 million and $12 million for the Amounts due from Reinsurers, respectively, is recorded through Net derivative gains (losses). (2) For the GMIB reinsurance contract asset, Amounts Due from Reinsurers and GMxB derivative features liability, represents attributed fee. (3) For the GMIB reinsurance contract asset and Amounts Due from Reinsurers, represents recoveries from reinsurers and for GMxB derivative features liability represents benefits paid. (4) Transfers into/out of the Level 3 classification are reflected at beginning-of-period fair values. (5) Represents the opening ceded balance from the Venerable transaction of the GMxB with no lapse guarantee riders. The table below details changes in unrealized gains (losses) for the six months ended June 30, 2021 and 2020 by category for Level 3 assets and liabilities still held as of June 30, 2021 and 2020, respectively. Change in Unrealized Gains (Losses) for Level 3 Instruments Net Income (Loss) Net Derivative Gains (Losses) OCI (in millions) Held at June 30, 2021: Net Income (Loss) Net Derivative Gains (Losses) OCI (in millions) Change in unrealized gains (losses): Fixed maturities, AFS: Corporate $ — $ 27 State and political subdivisions — (1) Total fixed maturities, AFS — 26 Amounts Due from Reinsurers 242 — GMIB reinsurance contracts (566) — GMxB derivative features liability 2,686 — Total $ 2,362 $ 26 Held at June 30, 2020: Change in unrealized gains (losses): Fixed maturities, AFS: Corporate $ — $ (54) State and political subdivisions — 2 Asset-backed — — Total fixed maturities, AFS — (52) GMIB reinsurance contracts 1,026 — Separate Account assets — — GMxB derivative features liability (3,952) — Total $ (2,926) $ (52) Quantitative and Qualitative Information about Level 3 Fair Value Measurements The following tables disclose quantitative information about Level 3 fair value measurements by category for assets and liabilities as of June 30, 2021 and December 31, 2020, respectively. Quantitative Information about Level 3 Fair Value Measurements as of June 30, 2021 Fair Valuation Technique Significant Range Weighted Average (2) (in millions) Assets: Investments: Fixed maturities, AFS: Corporate $ 146 Matrix pricing model Spread over Benchmark 20 - 320 bps 95 bps 799 Market comparable companies EBITDA multiples Discount Rate Cashflow Multiples 4.5x - 26.5x 5.88% - 14.58% 0.4x - 16.9x 11.2x 9.0% 6.3x Other equity investments 3 Market comparable companies Revenue multiple 8.5x - 11.0x 10.5x Fair Valuation Technique Significant Range Weighted Average (2) GMIB reinsurance contract asset 2,290 Discounted cash flow Lapse rates Withdrawal Rates GMIB Utilization Rates Non-performance risk Volatility rates - Equity Mortality: Ages 0-40 Ages 41-60 Ages 61-115 0.56% - 15.62% 0.36% - 2.03% 0.04% - 60.91% 43 bps - 85 bps 9% - 28% 0.01% - 0.18% 0.07% - 0.54% 0.42% - 42.20% 1.89% 0.88% 5.25% 48 bps 24% 2.94% (same for all ages) (same for all ages) Amount Due from Reinsurers 5,510 Discounted Cash Flow Lapse rates Withdrawal Rates GMIB Utilization Rates Non-performance risk (bps) Volatility rates - Equity Mortality: Ages 0-40 Ages 41-60 Ages 61-115 0.56% - 15.62% 0.36% - 2.03% 0.04% - 60.91% 34 bps - 34 bps 9% - 28% 0.01% - 0.18% 0.07% - 0.54% 0.42% - 42.20% 1.79% 1.09% 7.14% 34 bps 24% 2.21% (same for all ages) (same for all ages) Liabilities: GMIBNLG 8,378 Discounted cash flow Non-performance risk Lapse Withdrawal Annuitization Mortality (1): Ages 0-40 Ages 41-60 Ages 61-115 98 bps - 98 bps 1.10% - 25.67% 0.36% - 2.03% 0.03% - 100.00% 0.01% - 0.19% 0.06% - 0.53% 0.41% - 41.39% 98 bps 3.37% 0.93% 5.16% 1.66% (same for all ages) (same for all ages) GWBL/GMWB 139 Discounted cash flow Lapse rates Withdrawal Rates Utilization Rates Volatility rates - Equity Non-performance risk 0.80% - 15.62% 0.00% - 8.00% 100% once starting 9% - 28% 98 bps - 98 bps 1.89% 0.88% 24% GIB (60) Discounted cash flow Lapse rates Withdrawal Rates Utilization Rates Volatility rates - Equity Non-performance risk 0.80% - 15.62% 0.18% - 2.03% 0.04% - 100.00% 9% - 28% 98 bps - 98 bps 1.89% 0.88% 5.25% 24% GMAB (2) Discounted cash flow Lapse rates Volatility rates - Equity Non-performance risk 0.80% - 15.62% 9% - 28% 98 bps - 98 bps 1.89% 24% ______________ (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. (2) For lapses, withdrawals, and utilizations the rates were weighted by counts, for mortality weighted average rates are shown for all ages combined and for withdrawals the weighted averages were based on an estimated split of partial withdrawal and dollar-for-dollar withdrawals. Quantitative Information about Level 3 Fair Value Measurements as of December 31, 2020 Fair Value Valuation Technique Significant Unobservable Input Range Weighted Average (in millions) Assets: Investments: Fixed maturities, AFS: Corporate $ 28 Matrix pricing model Spread over benchmark 45 - 195 bps 152 bps 1,148 Market comparable companies EBITDA multiples Cash flow multiples 3.5x - 33.1x 5.6% - 28.4% 1.9x -25.0x 10.8x 8.6% 6.8x Other equity investments 2 Market comparable companies Revenue multiple 9.7x - 26.4x 18.5x GMIB reinsurance contract asset 2,859 Discounted cash flow Non-performance risk Lapse rates Withdrawal rates Utilization rates Volatility rates - Equity Mortality rates (1): Ages 0 - 40 Ages 41 - 60 Ages 61 - 115 43 - 85 bps 0.6%-16% 0%-2% 0%-61% 7%-32% 0.01%-0.18% 0.07%-0.54% 0.42%-42.20% 50 bps 1.69% 0.91% 5.82% 24% 2.80% (same for all ages) (same for all ages) Liabilities: GMIBNLG 10,713 Discounted cash flow Non-performance risk Lapse rates Withdrawal rates Annuitization rates Mortality rates (1): Ages 0 - 40 Ages 41 - 60 Ages 61 - 115 96.0 bps 1.1%-25.7% 0.4%-2% 0%-100% 0.01%-0.19% 0.06%-0.53% 0.41%-41.39% 3.19% 0.93% 5.51% 1.56% (same for all ages) (same for all ages) GWBL/GMWB 190 Discounted cash flow Non-performance risk Lapse rates Withdrawal rates Utilization rates Volatility rates - Equity 96.0 bps 0.8%-16% 0%-8% 100% once starting 7%-32% 1.69% 0.91% 24% GIB 31 Discounted cash flow Non-performance risk Lapse rates Withdrawal rates Utilization rates Volatility rates - Equity 96.0 bps 0.8%-15.6% 0%-2% 0%-100% 7%-32% 1.69% 0.91% 5.82% 24% GMAB 2 Discounted cash flow Non-performance risk Lapse rates Volatility rates - Equity 96.0 bps 0.8%-16% 7%-32% 1.69% 24% ______________ (1) Mortality rates vary by age and demographic characteristic such as gender. Mortality |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Income tax expense for the three and six months ended June 30, 2021 and 2020 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. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended |
Jun. 30, 2021 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS In June 2021, Equitable Life made a $1.0 billion 10-year term loan to Holdings. The loan has an interest rate of 3.23% and matures in June 2031. |
EQUITY
EQUITY | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
EQUITY | EQUITY AOCI represents cumulative gains (losses) on items that are not reflected in net income (loss). The balances as of June 30, 2021 and December 31, 2020 follow: June 30, December 31, 2021 2020 (in millions) Unrealized gains (losses) on investments $ 2,645 $ 4,600 Defined benefit pension plans (5) (5) Accumulated other comprehensive income (loss) attributable to Equitable Financial $ 2,640 $ 4,595 The components of OCI, net of taxes for the three and six months ended June 30, 2021 and 2020, follow: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (in millions) Change in net unrealized gains (losses) on investments: Net unrealized gains (losses) arising during the period $ 1,744 $ 2,633 $ (2,124) $ 4,229 (Gains) losses reclassified into net income (loss) during the period (1) (314) (134) (478) (182) Net unrealized gains (losses) on investments 1,430 2,499 (2,602) 4,047 Adjustments for policyholders’ liabilities, DAC, insurance liability loss recognition and other (271) (929) 647 (967) Change in unrealized gains (losses), net of adjustments (net of deferred income tax expense (benefit) of $308, $416, $(520) and $819) 1,159 1,570 (1,955) 3,080 Other comprehensive income (loss), attributable to Equitable Financial $ 1,159 $ 1,570 $ (1,955) $ 3,080 ____________ (1) See “Reclassification adjustments” in Note 3. Reclassification amounts presented net of income tax expense (benefit) of $83 million, $35 million , $127 million and $48 million for the three and six months ended June 30, 2021 and 2020, respectively. Investment gains and losses reclassified from AOCI to net income (loss) primarily consist of realized gains (losses) on sales and credit losses 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 amortization of net (gains) losses and net prior service cost (credit) recognized as a component of net periodic cost and reported in compensation and benefits in the consolidated statements of income (loss). Amounts presented in the table above are net of tax. Permitted Statutory Accounting Practices Equitable Financial was granted a permitted practice by the NYDFS to apply SSAP 108, Derivatives Hedging Variable Annuity Guarantees on a retroactive basis from January 1, 2021 through June 30, 2021, after reflecting the impacts of our reinsurance transaction with Venerable. Application of the permitted practice partially mitigates the Regulation 213 impact of the Venerable transaction on Equitable Financial’s statutory capital and surplus. The impact of the application of this permitted practice was an increase of approximately $1.5 billion in statutory surplus as of June 30, 2021, which will be amortized over 5 years. The permitted practice also resets Equitable Financial’s unassigned surplus to zero as of June 30, 2021 to reflect the transformative nature of the Venerable transaction. |
REDEEMABLE NONCONTROLLING INTER
REDEEMABLE NONCONTROLLING INTEREST | 6 Months Ended |
Jun. 30, 2021 | |
Noncontrolling Interest [Abstract] | |
REDEEMABLE NONCONTROLLING INTEREST | REDEEMABLE NONCONTROLLING INTEREST The changes in the components of redeemable noncontrolling interests are presented in the table that follows: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (in millions) Balance, beginning of period $ 48 $ 32 $ 41 $ 39 Net earnings (loss) attributable to redeemable noncontrolling interests 1 2 1 (3) Purchase/change of redeemable noncontrolling interests (25) 2 (18) — Balance, end of period $ 24 $ 36 $ 24 $ 36 |
COMMITMENTS AND CONTINGENT LIAB
COMMITMENTS AND CONTINGENT LIABILITIES | 6 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENT LIABILITIES | COMMITMENTS AND CONTINGENT LIABILITIES Litigation and Regulatory Matters 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 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, 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. The outcome of a litigation or regulatory matter is difficult to predict, and the amount or range of potential losses associated with these or other loss contingencies requires significant management judgment. It is not possible to predict the ultimate outcome or to provide reasonably possible losses or ranges of losses for all pending regulatory matters, litigation and other loss contingencies. While it is possible that an adverse outcome in certain cases could have a material adverse effect upon the Company’s financial position, based on information currently known, management believes that neither the outcome of pending litigation and regulatory matters, nor potential liabilities associated with other loss contingencies, are likely to have such an effect. However, given the large and indeterminate amounts sought in certain litigation and the inherent unpredictability of all such matters, it is possible that an adverse outcome in certain of the Company’s litigation or regulatory matters, or liabilities arising from other loss contingencies, could, from time to time, have a material adverse effect upon the Company’s results of operations or cash flows in a particular quarterly or annual period. For some matters, the Company is able to estimate a possible range of loss. For such matters in which a loss is probable, an accrual has been made. For matters where the Company believes a loss is reasonably possible, but not probable, no accrual is required. For matters for which an accrual has been made, but there remains a reasonably possible range of loss in excess of the amounts accrued or for matters where no accrual is required, the Company develops an estimate of the unaccrued amounts of the reasonably possible range of losses. As of June 30, 2021, 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 $150 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 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 Equitable Financial, 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 Equitable Financial implemented the volatility management strategy in violation of applicable law. Plaintiff seeks an award of damages individually and on a classwide basis, and costs and disbursements, including attorneys’ fees, expert witness fees and other costs. In 2015, the case was transferred to the Southern District of New York and, in 2018, transferred back to Connecticut Superior Court. In August 2019, the court granted Equitable Financial’s motion to strike, which sought dismissal of the complaint, and in September 2019, Plaintiff filed an Amended Class Action Complaint. Equitable Financial filed renewed motions to strike and to dismiss and for an entry of judgment in October 2019. In August 2020, the court granted Equitable Financial’s motion for entry of judgment. Plaintiff filed a notice of appeal. We are vigorously defending this matter. In February 2016, a lawsuit was filed in 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 UL policies subject to Equitable Financial’s COI rate increase. In early 2016, Equitable Financial raised COI rates for certain UL policies issued between 2004 and 2008, 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 consolidated amended class action complaint alleges the following claims: breach of contract; misrepresentations 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. In August 2020, the federal district court issued a decision certifying nationwide breach of contract and Section 4226 classes, and a New York State Section 349 class. Equitable Financial has commenced settlement discussions with the Brach class action plaintiffs through a non-binding mediation process. No assurances can be given about the outcome of that mediation process. Separately, a substantial number of policy owners have opted out of the Brach class action and are not participating in that mediation process. Most have not yet filed suit. Others filed suit previously. They include five other federal actions challenging the COI rate increase that are also pending against Equitable Financial 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. Two actions are also pending against Equitable Financial in New York state court. Equitable Financial is vigorously defending each of these 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. For example, among other matters, the Company has been cooperating with the U.S. Securities and Exchange Commission (the “SEC”) concerning the SEC’s investigation into the Company’s non-ERISA K-12 403(b) and 457 sales and disclosure practices. Obligations under Funding Agreements Federal Home Loan Bank As a member of the FHLB, Equitable Financial has access to collateralized borrowings. It also may issue funding agreements to the FHLB. Both the collateralized borrowings and funding agreements would require Equitable Financial to pledge qualified mortgage-backed assets and/or government securities as collateral. Equitable Financial issues short-term funding agreements to the FHLB and uses the funds for asset, liability, and cash management purposes. Equitable Financial issues long-term funding agreements to the FHLB and uses the funds for spread lending purposes. Entering into FHLB membership, borrowings and funding agreements requires the ownership of FHLB stock and the pledge of assets as collateral. Equitable Financial has purchased FHLB stock of $382 million and pledged collateral with a carrying value of $10.8 billion as of June 30, 2021. Funding agreements are reported in policyholders’ account balances in the consolidated balance sheets. For other instruments used for asset/liability and cash management purposes, see “Derivative and offsetting assets and liabilities” included in Note 4. The table below summarizes the Company’s activity of funding agreements with the FHLB. Change in FHLB Funding Agreements during the Six Months Ended June 30, 2021 Outstanding Balance at December 31, 2020 Issued During the Period Repaid During the Period Long-term Agreements Maturing Within One Year Long-term Agreements Maturing Within Five Years Outstanding Balance at June 30, 2021 (in millions) Short-term funding agreements: Due in one year or less $ 5,634 $ 32,276 $ 30,948 $ 227 $ — $ 7,189 Long-term funding agreements: Due in years two through five 722 — — (227) 409 904 Due in more than five years 534 — — — (409) 125 Total long-term funding agreements 1,256 — — (227) — 1,029 Total funding agreements (1) $ 6,890 $ 32,276 $ 30,948 $ — $ — $ 8,218 ____________ (1) The $6 million and $7 million difference between the funding agreements carrying value shown in fair value table for June 30, 2021 and December 31, 2020, respectively, reflects the remaining amortization of a hedge implemented and closed, which locked in the funding agreements borrowing rates. Funding Agreement-Backed Notes Program Under the FABN program, Equitable Financial may issue funding agreements in U.S. dollar or other foreign currencies to a Delaware special purpose statutory trust (the “Trust”) in exchange for the proceeds from issuances of fixed and floating rate medium-term marketable notes issued by the Trust from time to time (the “Trust notes”). The funding agreements have matching interest, maturity and currency payment terms to the applicable Trust notes. The Company hedges the foreign currency exposure of foreign currency denominated funding agreements using cross currency swaps as discussed in Note 4. As of May 2021, the maximum aggregate principal amount of Trust notes permitted to be outstanding at any one time is $10 billion. Funding agreements issued to the Trust, including any foreign currency transaction adjustments, are reported in policyholders’ account balances in the consolidated balance sheets. The table below summarizes the Company’s activity of funding agreements under the FABN. Foreign currency transaction adjustments to policyholder’s account balances are recognized in net income (loss) as an adjustment to interest credited to policyholders’ account balances and are offset in interest credited to policyholders’ account balances by a release of AOCI from deferred changes in fair value of designated and qualifying cross currency swap cash flow hedges. The table below summarizes Equitable Financial’s issuances of funding agreements under the FABN. Change in FABN Funding Agreements during the Six Months Ended June 30, 2021 Outstanding Balance at December 31, 2020 Issued During the Period Repaid During the Period Long-term Agreements Maturing Within One Year Long-term Agreements Maturing Within Five Years Foreign Currency Transaction Adjustment Outstanding Balance at June 30, 2021 (in millions) Short-term funding agreements: Due in one year or less $ — $ — $ — $ — $ — $ — $ — Long-term funding agreements: Due in years two through five 1,150 1,000 — — — — 2,150 Due in more than five years 800 1,809 — — — (17) 2,592 Total long-term funding agreements 1,950 2,809 — — — (17) 4,742 Total funding agreements (1) $ 1,950 $ 2,809 $ — $ — $ — $ (17) $ 4,742 _____________ (1) The $23 million and $11 million difference between the funding agreements notional value shown and carrying value table as of June 30, 2021 and December 31, 2020, respectively, reflects the remaining amortization of the issuance cost of the funding agreements and the foreign currency transaction adjustment. Guarantees and Other Commitments The Company provides certain guarantees or commitments to affiliates and others. As of June 30, 2021, these arrangements include commitments by the Company to provide equity financing of $1.3 billion (including $312 million with affiliates) to certain limited partnerships and real estate joint ventures under certain conditions. Management believes the Company will not incur material losses as a result of these commitments. The Company had $17 million of undrawn letters of credit related to reinsurance as of June 30, 2021. The Company had $543 million of commitments under existing mortgage loan agreements as of June 30, 2021. The Company is the obligor under certain structured settlement agreements it had entered into with unaffiliated insurance companies and beneficiaries. To satisfy its obligations under these agreements, the Company owns single premium annuities issued by previously wholly-owned life insurance subsidiaries. The Company has directed payment under these annuities to be made directly to the beneficiaries under the structured settlement agreements. A contingent liability exists with respect to these agreements should the previously wholly-owned subsidiaries be unable to meet their obligations. Management believes the need for the Company to satisfy those obligations is remote. Pursuant to certain assumption agreements (the “Assumption Agreements”), AXA Financial legally assumed primary liability from Equitable Financial for all current and future liabilities of Equitable Financial 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. Equitable Financial remains secondarily liable for its obligations under these plans and would recognize such liabilities in the event AXA Financial does not perform under the terms of the Assumption Agreements. On October 1, 2018, AXA Financial merged with and into its direct parent, Holdings, with Holdings continuing as the surviving entity. |
REVISION OF PRIOR PERIOD FINANC
REVISION OF PRIOR PERIOD FINANCIAL STATEMENTS | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Changes and Error Corrections [Abstract] | |
REVISION OF PRIOR PERIOD FINANCIAL STATEMENTS | REVISION OF PRIOR PERIOD FINANCIAL STATEMENTSThe Company identified certain errors primarily related to the calculation of actuarially determined insurance contract assets and liabilities that impacted previously issued consolidated financial statements. Management evaluated these adjustments and concluded they were not material to any previously reported quarterly or annual financial statements. In order to improve the consistency and comparability of the financial statements, management revised the financial statements and related disclosures to correct these errors as shown below. Management assessed the materiality of this change within prior period financial statements based upon SEC Staff Accounting Bulletin Number 99, Materiality, which is since codified in ASC 250, Accounting Changes and Error Corrections. The prior period comparative financial statements that are presented herein have been revised. The following tables present line items for prior period financial statements that have been affected by the revision. For these line items, the tables detail the amounts as previously reported, the impact upon those line items due to the revision, and the amounts as currently revised within the financial statements. June 30, 2020 As Previously Impact of Revisions As Revised (in millions) Consolidated Balance Sheets: Assets: Deferred policy acquisition costs 3,746 (70) 3,676 Total Assets $ 232,378 $ (70) $ 232,308 Liabilities: Future policy benefits and other policyholders’ liabilities 41,382 29 41,411 Current and deferred income taxes 1,020 (21) 999 Total Liabilities $ 217,176 $ 8 $ 217,184 EQUITY Retained earnings 2,658 (78) 2,580 Total equity attributable to Equitable Financial 15,157 (78) 15,079 Total Equity 15,166 (78) 15,088 Total Liabilities, Redeemable Noncontrolling interest and Equity $ 232,378 $ (70) $ 232,308 Three Months Ended June 30, 2020 Six Months Ended June 30, 2020 As Previously Impact of Revisions As Revised As Previously Impact of Revisions As Revised (in millions) Consolidated Statements of Income (Loss) REVENUES Policy charges and fee income $ 825 $ (1) $ 824 $ 1,729 $ — $ 1,729 Net derivative gains (losses) (5,903) (5) (5,908) 3,630 (6) 3,624 Net investment income (loss) 934 (13) 921 1,525 — 1,525 Other income 8 2 10 25 — 25 Total revenues (3,557) (17) (3,574) 8,031 (6) 8,025 BENEFITS AND OTHER DEDUCTIONS Policyholders' benefits 700 (9) 691 3,297 20 3,317 Amortization of deferred policy acquisition costs 164 (15) 149 1,222 (51) 1,171 Other operating costs and expenses 218 — 218 431 1 432 Total benefits and deductions 1,563 (24) 1,539 5,961 (30) 5,931 Income (loss) from continuing operations, before income taxes (5,120) 7 (5,113) 2,070 24 2,094 Income tax (expense) benefit from continuing operations 1,029 (2) 1,027 (425) (5) (430) Net income (loss) (4,091) 5 (4,086) 1,645 19 1,664 Net income (loss) attributable to Equitable Financial $ (4,095) $ 5 $ (4,090) $ 1,648 $ 19 $ 1,667 Three Months Ended June 30, 2020 Six Months Ended June 30, 2020 As Previously Impact of Revisions As Revised As Previously Impact of Revisions As Revised (in millions) Consolidated Statements of Comprehensive Income (Loss) Net income (loss) $ (4,091) $ 5 $ (4,086) $ 1,645 $ 19 $ 1,664 Change in unrealized gains (losses), net of reclassification adjustment 1,569 — 1,569 3,083 (4) 3,079 Other comprehensive income 1,570 — 1,570 3,084 (4) 3,080 Comprehensive income (loss) (2,521) 5 (2,516) 4,729 15 4,744 Less: Comprehensive income (loss) attributable to noncontrolling interest (3) 7 4 (3) — (3) Comprehensive income (loss) attributable to Equitable Financial $ (2,518) $ (2) $ (2,520) $ 4,732 $ 15 $ 4,747 Three Months Ended June 30, 2020 Six Months Ended June 30, 2020 As Previously Impact of Revisions As Revised As Previously Impact of Revisions As Revised (in millions) Consolidated Statements of Equity: Retained earnings, beginning of year $ 7,953 $ (83) $ 7,870 $ 2,242 $ (97) $ 2,145 Net income (loss) attributable to Equitable Financial (4,095) 5 (4,090) 1,648 19 1,667 Retained earnings, end of period $ 2,658 $ (78) $ 2,580 $ 2,658 $ (78) $ 2,580 Accumulated other comprehensive income (loss), beginning of year $ 3,106 $ — $ 3,106 $ 1,592 $ 4 $ 1,596 Other comprehensive income (loss) 1,570 — 1,570 3,084 (4) 3,080 Total Equitable Financial equity, end of period $ 15,157 $ (78) $ 15,079 $ 15,157 $ (78) $ 15,079 Total equity, end of period $ 15,166 $ (78) $ 15,088 $ 15,166 $ (78) $ 15,088 June 30, 2020 As Previously Reported Impact of Revisions As Revised (in millions) Consolidated Statements of Cash Flows: Cash flow from operating activities: Net income (loss) $ 1,645 $ 19 $ 1,664 Adjustments to reconcile Net income (loss) to Net cash provided by (used in) operating activities: Net derivative (gains) losses (3,630) 6 (3,624) Amortization and depreciation 1,181 (51) 1,130 Future policy benefits 1,666 20 1,686 Current and deferred income taxes 433 6 439 Net cash provided by (used in) operating activities (868) — (868) Cash and cash equivalents, end of period $ 4,318 $ — $ 4,318 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS Funding Agreement-Backed Notes On July 12, 2021, Equitable Financial completed its inaugural $500 million sustainable financing issuance. Pursuant to the FABN program discussed in Note 12, the issuance was offered in the form of funding agreement backed notes through Equitable Financial Life Global Funding, having a fixed interest rate of 1.30% per annum and maturing in July 2026. |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The unaudited interim consolidated financial statements (the “consolidated financial statements”) have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP” or “GAAP”) on a basis consistent with reporting interim financial information in accordance with instructions to the Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission (“SEC”). 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, with the exception of the Company’s update of its interest rate assumption and adoption of new economic scenario generator as further described below in Assumption Updates and Model Changes. Interim results are not necessarily indicative of the results that may be expected for the full year. These financial statements should be read in conjunction with the Company’s consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. The accompanying unaudited consolidated financial statements present the consolidated results of operations, financial condition and cash flows of the Company and its subsidiaries and those investment companies, partnerships and joint ventures in which the Company has control and a majority economic interest as well as those variable interest entities (“VIEs”) that meet the requirements for consolidation. |
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 2019-12: Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes This ASU simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740, as well as clarifying and amending existing guidance. On January 1, 2021, the Company adopted the new accounting standards update. The new guidance is applied either on a retrospective, modified retrospective or prospective basis based on the items to which the amendments relate. The adoption did not have a material impact on the Company’s consolidated financial position, results of operations and cash flows as of the adoption date. Future Adoption of New Accounting Pronouncements Description Effective Date and Method of Adoption Effect on the Financial Statement or Other Significant Matters ASU 2018-12: Financial Services - Insurance (Topic 944); ASU 2020-11: Financial Services - Insurance (Topic 944): Effective Date and Early Application 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: 1. 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. In November 2020, the FASB issued ASU 2020-11 which deferred the effective date of the amendments in ASU 2018-12 for all insurance entities. ASU 2018-12 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. Early adoption is allowed. 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 Accumulated other comprehensive income (“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. The Company is currently 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. 2. Measurement of market risk benefits (“MRBs”). MRBs, as defined under the ASU, will encompass certain variable annuity guaranteed benefit (“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 Other comprehensive income (“OCI”). 3. Amortization of deferred acquisition costs. The ASU simplifies the amortization of deferred 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. 4. Expanded footnote disclosures. The ASU requires additional disclosures including disaggregated roll-forwards of beginning to ending balances of the liability for future policy benefits, policyholder account balances, MRBs, separate account liabilities and deferred 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. Description Effective Date and Method of Adoption Effect on the Financial Statement or Other Significant Matters ASU2020-04: Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting The amendments in this ASU provide optional expedients and exceptions to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in this ASU apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. This ASU is effective as of March 12, 2020 through December 31, 2022. The Company is currently assessing the applicability of the optional expedients and exceptions provided under the ASU. Management is evaluating the impact that the adoption of this guidance will have on the Company’s consolidated financial statements. |
Investments | Investments The carrying values of fixed maturities classified as AFS are reported at fair value. Changes in fair value are reported in OCI, net of allowance for credit losses, policy related amounts and deferred income taxes. Changes in credit losses are recognized in Investment gains (losses), net. The redeemable preferred stock investments that are reported in fixed maturities include REIT, perpetual preferred stock and redeemable preferred stock. These securities may not have a stated maturity, may not be cumulative and do not provide for mandatory redemption by the issuer. Effective January 1, 2021, the Company began classifying certain preferred stock as equity securities to better reflect the economics and nature of these securities. These preferred stock securities are reported in other equity investments. The Company determines the fair values of fixed maturities and equity securities based upon quoted prices in active markets, when available, or through the use of alternative approaches when market quotes are not readily accessible or available. These alternative approaches include matrix or model pricing and use of independent pricing services, each supported by reference to principal market trades or other observable market assumptions for similar securities. More specifically, the matrix pricing approach to fair value is a discounted cash flow methodology that incorporates market interest rates commensurate with the credit quality and duration of the investment. The Company’s management, with the assistance of its investment advisors, evaluates AFS debt securities that experienced a decline in fair value below amortized cost for credit losses which are evaluated in accordance with the new financial instruments credit losses guidance. Integral to this review is an assessment made each quarter, on a security-by-security basis, by the Company’s IUS Committee, of various indicators of credit deterioration to determine whether the investment security has experienced a credit loss. This assessment includes, but is not limited to, consideration of the severity of the unrealized loss, failure, if any, of the issuer of the security to make scheduled payments, actions taken by rating agencies, adverse conditions specifically related to the security or sector, the financial strength, liquidity and continued viability of the issuer. The Company recognizes an allowance for credit losses on AFS debt securities with a corresponding adjustment to earnings rather than a direct write down that reduces the cost basis of the investment, and credit losses are limited to the amount by which the security’s amortized cost basis exceeds its fair value. Any improvements in estimated credit losses on AFS debt securities are recognized immediately in earnings. Management does not use the length of time a security has been in an unrealized loss position as a factor, either by itself or in combination with other factors, to conclude that a credit loss does not exist. When the Company determines that there is more than 50% likelihood that it is not going to recover the principal and interest cash flows related to an AFS debt security, the security is placed on nonaccrual status and the Company reverses accrued interest receivable against interest income. Since the nonaccrual policy results in a timely reversal of accrued interest receivable, the Company does not record an allowance for credit losses on accrued interest receivable. If there is no intent to sell or likely requirement to dispose of the fixed maturity security before its recovery, only the credit loss component of any resulting allowance is recognized in income (loss) and the remainder of the fair value loss is recognized in OCI. The amount of credit loss is the shortfall of the present value of the cash flows expected to be collected as compared to the amortized cost basis of the security. The present value is calculated by discounting management’s best estimate of projected future cash flows at the effective interest rate implicit in the debt security at the date of acquisition. Projections of future cash flows are based on assumptions regarding probability of default and estimates regarding the amount and timing of recoveries. These assumptions and estimates require use of management judgment and consider internal credit analyses as well as market observable data relevant to the collectability of the security. For mortgage and asset-backed securities, projected future cash flows also include assumptions regarding prepayments and underlying collateral value. Write-offs of AFS debt securities are recorded when all or a portion of a financial asset is deemed uncollectible. Full or partial write-offs are recorded as reductions to the amortized cost basis of the AFS debt security and deducted from the allowance in the period in which the financial assets are deemed uncollectible. The Company elected to reverse accrued interest deemed uncollectible as a reversal of interest income. In instances where the Company collects cash that it has previously written off, the recovery will be recognized through earnings or as a reduction of the amortized cost basis for interest and principal, respectively. COLI has been purchased by the Company and certain subsidiaries on the lives of certain key employees and the Company and these subsidiaries are named as beneficiaries under these policies. COLI is carried at the cash surrender value of the policies. As of June 30, 2021 and December 31, 2020, the carrying value of COLI was $999 million and $989 million, respectively, and is reported in other invested assets in the consolidated balance sheets. |
Derivatives | Derivatives Derivatives are financial instruments whose values are derived from interest rates, foreign exchange rates, financial indices, values of securities or commodities, credit spreads, market volatility, expected returns and liquidity. Values can also be affected by changes in estimates and assumptions, including those related to counterparty behavior and non-performance risk used in valuation models. Derivative financial instruments generally used by the Company include equity, currency, and interest rate futures, total return and/or other equity swaps, interest rate swaps and floors, swaptions, variance swaps and equity options, all of which may be exchange-traded or contracted in the OTC market. All derivative positions are carried in the consolidated balance sheets at fair value, generally by obtaining quoted market prices or through the use of valuation models. Freestanding derivative contracts are reported in the consolidated balance sheets either as assets within “other invested assets” or as liabilities within “other liabilities”. 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. All changes in the fair value of the Company’s freestanding derivative positions not designated to hedge accounting relationships, including net receipts and payments, are included in “net derivative gains (losses)” without considering changes in the fair value of the economically associated assets or liabilities. The Company has designated certain derivatives it uses to economically manage asset/liability risk in relationships which qualify for hedge accounting. To qualify for hedge accounting, we formally document our designation at inception of the hedge relationship as a cash flow, fair value or net investment hedge. This documentation includes our risk management objective and strategy for undertaking the hedging transaction. The Company identifies how the hedging instrument is expected to offset the designated risks related to the hedged item and the method that will be used to retrospectively and prospectively assess the hedge effectiveness. To qualify for hedge accounting, a hedging instrument must be assessed as being highly effective in offsetting the designated risk of the hedged item. Hedge effectiveness is formally assessed and documented at inception and periodically throughout the life of the hedge accounting relationship. The Company does not exclude any components of the hedging instrument from the effectiveness assessments and therefor does not separately measure or account for any excluded components of the hedging instrument. While in cash flow hedge relationships, any periodic net receipts and payments from the hedging instrument are included in the income or expense line that the hedged item’s periodic income or expense is recognized. Other changes in the fair value of the hedging instrument while in a cash flow hedging relationship are reported within OCI. These amounts are deferred in AOCI until they are reclassified to Net income (loss). The reclassified amount offsets the effect of the cash flows on Net income (loss) in the same period when the hedged item affects earnings and on the same line as the hedged item. We discontinue cash flow hedge accounting prospectively when the Company determines: (1) the hedging instrument is no longer highly effective in offsetting changes in the cash flow from the hedged risk, (2) the hedged item is no longer probable of occurring within two months of their forecast, or (3) the hedging instrument is otherwise redesignated from the hedging relationship. Changes in the fair value of the derivative after discontinuation of cash flow hedge accounting are accounted for as freestanding derivative positions not designated to hedge accounting relationships unless and until the derivative is redesignated to a hedge accounting relationship. When cash flow hedge accounting is discontinued the amounts deferred in AOCI during the hedge relationship continue to be deferred in AOCI, as long as the hedged items continue to be probable of occurring within two months of their forecast, until the hedged item affects Net income (loss). Any amount deferred in AOCI for hedged items which are no longer probable of occurring within two months of their forecast will be reclassified to “net derivative gains (losses)” at that time. The Company is a party to financial instruments and other contracts that contain “embedded” derivative instruments. At inception, the Company assesses whether the economic characteristics of the embedded instrument are “clearly and closely related” to the economic characteristics of the remaining component of the “host contract” and whether a separate instrument with the same terms as the embedded instrument would meet the definition of a derivative instrument. Once those criteria are assessed, if necessary, the resulting embedded derivative is bifurcated from the host contract, carried in the consolidated balance sheets at fair value, and changes in its fair value are recognized immediately and captioned in the consolidated statements of income (loss) according to the nature of the related host contract. For certain financial instruments that contain an embedded derivative that otherwise would need to be bifurcated and reported at fair value, the Company instead may elect to carry the entire instrument at fair value. |
Reinsurance | Reinsurance For each of its reinsurance agreements, the Company determines whether the agreement provides indemnification against loss or liability relating to insurance risk in accordance with applicable accounting standards. Cessions under reinsurance agreements do not discharge the Company’s obligations as the primary insurer. The Company reviews all contractual features, including those that may limit the amount of insurance risk to which the reinsurer is subject or features that delay the timely reimbursement of claims. For reinsurance of existing in-force blocks of long-duration contracts that transfer significant insurance risk, the difference, if any, between the amounts paid (received), and the liabilities ceded (assumed) related to the underlying contracts is considered the net cost of reinsurance at the inception of the reinsurance agreement. The net cost of reinsurance is recorded as an adjustment and recognized as a component of other expenses on a basis consistent with the expected life of the underlying reinsured contracts. Subsequent amounts paid (received) on the reinsurance of in-force blocks, as well as amounts paid (received) related to new business, are recorded as premiums ceded (assumed); and amounts due from reinsurers (amounts due to reinsurers) are established. Assets and liabilities relating to reinsurance agreements with the same reinsurer may be recorded net on the balance sheet, if a right of offset exists within the reinsurance agreement. In the event that reinsurers do not meet their obligations to the Company under the terms of the reinsurance agreements, reinsurance recoverable balances could become uncollectible. In such instances, reinsurance recoverable balances are stated net of allowances for uncollectible reinsurance. Premiums, policy charges and fee income, and policyholders’ benefits include amounts assumed under reinsurance agreements and are net of reinsurance ceded. Amounts received from reinsurers for policy administration are reported in other revenues. With respect to GMIBs, a portion of the directly written GMIBs are accounted for as insurance liabilities, but the associated reinsurance agreements contain embedded derivatives as they are net settled. These embedded derivatives are included in GMIB reinsurance contract asset, at fair value with changes in estimated fair value reported in net derivative gains (losses). Separate Account liabilities that have been ceded on a Modified coinsurance (Modco) basis, receivable and payable have been recognized on a net basis as right of setoff exists. If the Company determines that a reinsurance agreement does not expose the reinsurer to a reasonable possibility of a significant loss from insurance risk, the Company records the agreement using the deposit method of accounting. Deposits received are included in other liabilities and deposits made are included within other assets. As amounts are paid or received, consistent with the underlying contracts, the deposit assets or liabilities are adjusted. Interest on such deposits is recorded as other income or other operating costs and expenses, as appropriate. Periodically, the Company evaluates the adequacy of the expected payments or recoveries and adjusts the deposit asset or liability through other revenues or other expenses, as appropriate. For reinsurance contracts other than those accounted for as derivatives, reinsurance recoverable balances are calculated using methodologies and assumptions that are consistent with those used to calculate the direct liabilities. |
Accounting and Consolidation of VIEs | Accounting and Consolidation of VIEs For all new investment products and entities developed by the Company, the Company first determines whether the entity is a VIE, which involves determining an entity’s variability and variable interests, identifying the holders of the equity investment at risk and assessing the five characteristics of a VIE. Once an entity has been determined to be a VIE, the Company then determines whether it is the primary beneficiary of the VIE based on its beneficial interests. If the Company is deemed to be the primary beneficiary of the VIE, then the Company consolidates the entity. Management of the Company reviews quarterly its investment management agreements and its investments in, and other financial arrangements with, certain entities that hold client AUM to determine the entities that the Company is required to consolidate under this guidance. These entities include certain mutual fund products, hedge funds, structured products, group trusts, collective investment trusts and limited partnerships. The analysis performed to identify variable interests held, determine whether entities are VIEs or VOEs, and evaluate whether the Company has a controlling financial interest in such entities requires the exercise of judgment and is updated on a continuous basis as circumstances change or new entities are developed. The primary beneficiary evaluation generally is performed qualitatively based on all facts and circumstances, including consideration of economic interests in the VIE held directly and indirectly through related parties and entities under common control, as well as quantitatively, as appropriate. Consolidated VIEs As of June 30, 2021 and December 31, 2020, the Company consolidated limited partnerships and LLCs for which it was identified as the primary beneficiary under the VIE model. Included in Other invested assets and Mortgage loans on real estate in the Company’s consolidated balance sheets at June 30, 2021 and December 31, 2020 are total assets of $134 million and $12 million, respectively related to these VIE. Non-Consolidated VIEs |
Assumption Updates and Model Changes | 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 our insurance business, liabilities for future policyholder benefits, DAC and DSI assets. However, the Company updates its assumptions as needed in the event it becomes aware of economic conditions or events that could require a change in assumptions that it believes may have a significant impact to the carrying value of product liabilities and assets and consequently materially impact its earnings in the period of the change. Due to the extraordinary economic conditions driven by the COVID-19 pandemic in the first quarter of 2020, the Company updated its interest rate assumption to grade from the current interest rate environment to an ultimate five-year historical average over a 10-year period. As such, the 10-year U.S. Treasury yield grades from the current level to an ultimate 5-year average of 2.25%. The low interest rate environment and update to the interest rate assumption caused a loss recognition event for the Company’s life interest-sensitive products, as well as to certain run-off business. This loss recognition event caused an acceleration of DAC amortization on the life interest-sensitive products and an increase in the premium deficiency reserve on the run-off business in the first quarter of 2020. |
Fair Value Measurement | U.S. GAAP 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 Nonrecurring Basis Fair value measurements are required on a non-recurring basis for certain assets only when an impairment or other events occur. For the periods ended June 30, 2021 and December 31, 2020, no assets or liabilities were required to be measured at fair value on a non-recurring basis. |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | Adoption of New Accounting Pronouncements Description Effect on the Financial Statement or Other Significant Matters ASU 2019-12: Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes This ASU simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740, as well as clarifying and amending existing guidance. On January 1, 2021, the Company adopted the new accounting standards update. The new guidance is applied either on a retrospective, modified retrospective or prospective basis based on the items to which the amendments relate. The adoption did not have a material impact on the Company’s consolidated financial position, results of operations and cash flows as of the adoption date. Future Adoption of New Accounting Pronouncements Description Effective Date and Method of Adoption Effect on the Financial Statement or Other Significant Matters ASU 2018-12: Financial Services - Insurance (Topic 944); ASU 2020-11: Financial Services - Insurance (Topic 944): Effective Date and Early Application 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: 1. 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. In November 2020, the FASB issued ASU 2020-11 which deferred the effective date of the amendments in ASU 2018-12 for all insurance entities. ASU 2018-12 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. Early adoption is allowed. 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 Accumulated other comprehensive income (“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. The Company is currently 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. 2. Measurement of market risk benefits (“MRBs”). MRBs, as defined under the ASU, will encompass certain variable annuity guaranteed benefit (“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 Other comprehensive income (“OCI”). 3. Amortization of deferred acquisition costs. The ASU simplifies the amortization of deferred 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. 4. Expanded footnote disclosures. The ASU requires additional disclosures including disaggregated roll-forwards of beginning to ending balances of the liability for future policy benefits, policyholder account balances, MRBs, separate account liabilities and deferred 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. Description Effective Date and Method of Adoption Effect on the Financial Statement or Other Significant Matters ASU2020-04: Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting The amendments in this ASU provide optional expedients and exceptions to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in this ASU apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. This ASU is effective as of March 12, 2020 through December 31, 2022. The Company is currently assessing the applicability of the optional expedients and exceptions provided under the ASU. Management is evaluating the impact that the adoption of this guidance will have on the Company’s consolidated financial statements. |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Available-for-Sale Fixed Maturities by Classification | The following tables provide information relating to the Company’s fixed maturities classified as AFS. AFS Fixed Maturities by Classification Amortized Allowance for Credit Losses Gross Gross Fair Value (in millions) June 30, 2021: (5) Fixed Maturities: Corporate (1) $ 43,004 $ 26 $ 3,071 $ 114 $ 45,935 U.S. Treasury, government and agency 14,528 — 1,774 4 16,298 States and political subdivisions 496 — 80 2 574 Foreign governments 907 — 54 9 952 Residential mortgage-backed (2) 99 — 10 — 109 Asset-backed (3) 4,876 — 30 2 4,904 Commercial mortgage-backed 1,564 — 36 5 1,595 Redeemable preferred stock (4) 71 — 13 — 84 Total at June 30, 2021 $ 65,545 $ 26 $ 5,068 $ 136 $ 70,451 December 31, 2020: Fixed Maturities: Corporate (1) $ 48,501 $ 13 $ 4,703 $ 89 $ 53,102 U.S. Treasury, government and agency 12,644 — 3,304 5 15,943 States and political subdivisions 482 — 92 — 574 Foreign governments 1,011 — 98 6 1,103 Residential mortgage-backed (2) 119 — 12 — 131 Asset-backed (3) 3,633 — 28 5 3,656 Commercial mortgage-backed 1,148 — 55 — 1,203 Redeemable preferred stock 598 — 46 3 641 Total at December 31, 2020 $ 68,136 $ 13 $ 8,338 $ 108 $ 76,353 ______________ (1) Corporate fixed maturities include 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, credit risk transfer securities. and other asset types. (4) Effective January 1, 2021, certain preferred stock have been reclassified to other equity investments (see Note 2 Significant Accounting Policies – Investments). (5) Decrease in AFS Fixed Maturities as of June 30, 2021 is primarily due to transferred assets related to the Venerable transaction. For additional information on the Venerable transaction, see Note 1-Organization of the Notes to Consolidated Financial Statements. |
Contractual Maturities of Available-for-Sale Fixed Maturities | The contractual maturities of AFS fixed maturities as of June 30, 2021 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 AFS Fixed Maturities Amortized Cost (Less Allowance for Credit Losses) Fair Value (in millions) June 30, 2021: Contractual maturities: Due in one year or less $ 1,963 $ 1,980 Due in years two through five 15,171 15,977 Due in years six through ten 15,771 16,976 Due after ten years 26,004 28,826 Subtotal 58,909 63,759 Residential mortgage-backed 99 109 Asset-backed 4,876 4,904 Commercial mortgage-backed 1,564 1,595 Redeemable preferred stock 71 84 Total at June 30, 2021 $ 65,519 $ 70,451 |
Proceeds and Gains (Losses) on Sales for Available-for-Sale Fixed Maturities | The following table shows proceeds from sales, gross gains (losses) from sales and credit losses for AFS fixed maturities for the three and six months ended June 30, 2021 and 2020: Proceeds from Sales, Gross Gains (Losses) from Sales and Credit Losses for AFS Fixed Maturities Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (in millions) Proceeds from sales $ 9,531 $ 2,864 $ 16,719 $ 4,586 Gross gains on sales $ 554 $ 205 $ 845 $ 274 Gross losses on sales $ (38) $ (24) $ (154) $ (27) Credit losses $ (6) $ (11) $ (12) $ (13) |
AFS 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. AFS Fixed Maturities - Credit Loss Impairments Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (in millions) Balance, beginning of period $ 34 $ 17 $ 28 $ 15 Previously recognized impairments on securities that matured, paid, prepaid or sold (1) — (1) — Recognized impairments on securities impaired to fair value this period (1) — — — — Credit losses recognized this period on securities for which credit losses were not previously recognized 6 8 8 10 Additional credit losses this period on securities previously impaired 1 3 5 3 Increases due to passage of time on previously recorded credit losses — — — — Accretion of previously recognized impairments due to increases in expected cash flows (for OTTI securities 2019 and prior) — — — — Balance at June 30, $ 40 $ 28 $ 40 $ 28 ______________ (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 Gains (Losses) on Available-for-Sale Fixed Maturities | The tables that follow below present a roll-forward of net unrealized investment gains (losses) recognized in AOCI. Net Unrealized Gains (Losses) on AFS Fixed Maturities Net Unrealized Gains (Losses) on Investments DAC Policyholders’ Liabilities Deferred Income Tax Asset (Liability) AOCI Gain (Loss) Related to Net Unrealized Investment Gains (Losses) (in millions) Balance, April 1, 2021 $ 3,124 $ (301) $ (811) $ (423) $ 1,589 Net investment gains (losses) arising during the period 2,196 — — — 2,196 Reclassification adjustment: — Included in Net income (loss) (398) — — — (398) Excluded from Net income (loss) — — — — — Other — — — — — Impact of net unrealized investment gains (losses) — (87) (224) (312) (623) Net unrealized investment gains (losses) excluding credit losses 4,922 (388) (1,035) (735) 2,764 Net unrealized investment gains (losses) with credit losses 9 (1) (2) (1) 5 Balance, June 30, 2021 $ 4,931 $ (389) $ (1,037) $ (736) $ 2,769 Balance, April 1, 2020 $ 5,040 $ (205) $ (1,003) $ (805) $ 3,027 Net investment gains (losses) arising during the period 3,336 — — — 3,336 Reclassification adjustment: — Included in Net income (loss) (167) — — — (167) Excluded from Net income (loss) — — — — — Impact of net unrealized investment gains (losses) — (289) (799) (437) (1,525) Net unrealized investment gains (losses) excluding credit losses 8,209 (494) (1,802) (1,242) 4,671 Net unrealized investment gains (losses) with credit losses (2) — 1 — (1) Balance, June 30, 2020 $ 8,207 $ (494) $ (1,801) $ (1,242) $ 4,670 Net Unrealized Gains (Losses) on Investments DAC Policyholders’ Liabilities Deferred Income Tax Asset (Liability) AOCI Gain (Loss) Related to Net Unrealized Investment Gains (Losses) (in millions) Balance, January 1, 2021 $ 8,230 $ (466) $ (1,814) $ (1,250) $ 4,700 Net investment gains (losses) arising during the period (2,695) — — — (2,695) Reclassification adjustment: — Included in net income (loss) (574) — — — (574) Excluded from net income (loss) — — — — — Other (1) (31) — — — (31) Impact of net unrealized investment gains (losses) — 77 777 514 1,368 Net unrealized investment gains (losses) excluding credit losses 4,930 (389) (1,037) (736) 2,768 Net unrealized investment gains (losses) with credit losses 1 — — — 1 Balance, June 30, 2021 $ 4,931 $ (389) $ (1,037) $ (736) $ 2,769 Balance, January 1, 2020 $ 3,084 $ (826) $ (192) $ (433) $ 1,633 Net investment gains (losses) arising during the period 5,362 — — — 5,362 Reclassification adjustment: Included in net income (loss) (230) — — — (230) Excluded from net income (loss) — — — — — Impact of net unrealized investment gains (losses) — 331 (1,611) (810) (2,090) Net unrealized investment gains (losses) excluding credit losses 8,216 (495) (1,803) (1,243) 4,675 Net unrealized investment gains (losses) with credit losses (9) 1 2 1 (5) Balance, June 30, 2020 $ 8,207 $ (494) $ (1,801) $ (1,242) $ 4,670 _____________ (1) Effective January 1, 2021, certain preferred stock have been reclassified to other equity investments (see Note 2 Significant Accounting Policies – Investments). |
Continuous Gross Unrealized Losses for Available-for-Sale Fixed Maturities | The following tables disclose the fair values and gross unrealized losses of the 959 issues as of June 30, 2021 and the 537 issues as of December 31, 2020 that are not deemed to have credit losses, 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: AFS Fixed Maturities in an Unrealized Loss Position for Which No Allowance Is Recorded Less Than 12 Months 12 Months or Longer Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (in millions) June 30, 2021 Fixed Maturities: Corporate $ 4,777 $ 96 $ 297 $ 14 $ 5,074 $ 110 U.S. Treasury, government and agency 642 5 — — 642 5 States and political subdivisions 84 2 — — 84 2 Foreign governments 222 5 21 4 243 9 Asset-backed 902 2 20 — 922 2 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) Commercial mortgage-backed 402 5 — — 402 5 Total at June 30, 2021 $ 7,029 $ 115 $ 338 $ 18 $ 7,367 $ 133 December 31, 2020: Fixed Maturities: Corporate $ 2,773 $ 52 $ 332 $ 32 $ 3,105 $ 84 U.S. Treasury, government and agency 881 5 — — 881 5 Foreign governments 153 2 20 4 173 6 Asset-backed 809 4 76 1 885 5 Redeemable preferred stock 53 1 11 2 64 3 Total at December 31, 2020 $ 4,669 $ 64 $ 439 $ 39 $ 5,108 $ 103 . |
Financing Receivable, Allowance for Credit Loss | The change in the allowance for credit losses for commercial mortgage loans and agricultural mortgage loans during the three months ended June 30, 2021 and 2020 were as follows: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (in millions) Allowance for credit losses on mortgage loans: Commercial mortgages: Balance, beginning of period $ 70 $ 43 $ 77 $ 33 Current-period provision for expected credit losses (11) 19 (18) 29 Write-offs charged against the allowance — — — 0 Recoveries of amounts previously written off — — — 0 Net change in allowance (11) 19 (18) 29 Balance, end of period $ 59 $ 62 $ 59 $ 62 Agricultural mortgages: Balance, beginning of period $ 4 $ 3 $ 4 $ 3 Current-period provision for expected credit losses — 1 — 1 Write-offs charged against the allowance — — — — Recoveries of amounts previously written off — — — — Net change in allowance — 1 — 1 Balance, end of period $ 4 $ 4 $ 4 $ 4 Total allowance for credit losses $ 63 $ 66 $ 63 $ 66 |
Financing Receivable Credit Quality Indicators | The following tables summarize the Company’s mortgage loans segregated by risk rating exposure as of June 30, 2021 and December 31, 2020. LTV Ratios (1) June 30, 2021 Amortized Cost Basis by Origination Year 2021 2020 2019 2018 2017 Prior Total (in millions) Mortgage loans: Commercial: 0% - 50% $ — $ — $ — $ 184 $ 324 $ 768 $ 1,276 50% - 70% 616 1,242 377 619 701 3,536 7,091 70% - 90% — 320 457 451 176 752 2,156 90% plus — — — 12 5 207 224 Total commercial $ 616 $ 1,562 $ 834 $ 1,266 $ 1,206 $ 5,263 $ 10,747 Agricultural: 0% - 50% $ 92 $ 219 $ 130 $ 137 $ 131 $ 814 $ 1,523 50% - 70% 151 271 109 145 91 376 1,143 70% - 90% — — — — — 17 17 90% plus — — — — — — — Total agricultural $ 243 $ 490 $ 239 $ 282 $ 222 $ 1,207 $ 2,683 Total mortgage loans: 0% - 50% $ 92 $ 219 $ 130 $ 321 $ 455 $ 1,582 $ 2,799 50% - 70% 767 1,513 486 764 792 3,912 8,234 70% - 90% — 320 457 451 176 769 2,173 90% plus — — — 12 5 207 224 Total mortgage loans $ 859 $ 2,052 $ 1,073 $ 1,548 $ 1,428 $ 6,470 $ 13,430 Debt Service Coverage Ratios (2) June 30, 2021 Amortized Cost Basis by Origination Year 2021 2020 2019 2018 2017 Prior Total (in millions) Mortgage loans: Commercial: Greater than 2.0x $ 345 $ 1,170 $ 410 $ 772 $ 343 $ 3,070 $ 6,110 1.8x to 2.0x 131 227 174 117 423 389 1,461 1.5x to 1.8x — 105 75 187 177 660 1,204 1.2x to 1.5x — 60 75 102 148 571 956 1.0x to 1.2x 140 — 44 40 — 156 380 Less than 1.0x — — 56 48 115 417 636 Total commercial $ 616 $ 1,562 $ 834 $ 1,266 $ 1,206 $ 5,263 $ 10,747 Agricultural: Greater than 2.0x $ 31 $ 67 $ 25 $ 22 $ 33 $ 232 $ 410 1.8x to 2.0x 35 38 26 23 14 78 214 1.5x to 1.8x 42 114 30 29 40 206 461 1.2x to 1.5x 95 182 117 124 78 397 993 1.0x to 1.2x 40 85 32 79 56 256 548 Less than 1.0x — 4 9 5 1 38 57 Total agricultural $ 243 $ 490 $ 239 $ 282 $ 222 $ 1,207 $ 2,683 Total mortgage loans: June 30, 2021 Amortized Cost Basis by Origination Year 2021 2020 2019 2018 2017 Prior Total (in millions) Greater than 2.0x $ 376 $ 1,237 $ 435 $ 794 $ 376 $ 3,302 $ 6,520 1.8x to 2.0x 166 265 200 140 437 467 1,675 1.5x to 1.8x 42 219 105 216 217 866 1,665 1.2x to 1.5x 95 242 192 226 226 968 1,949 1.0x to 1.2x 180 85 76 119 56 412 928 Less than 1.0x — 4 65 53 116 455 693 Total mortgage loans $ 859 $ 2,052 $ 1,073 $ 1,548 $ 1,428 $ 6,470 $ 13,430 _____________ (1) The LTV ratio is derived from current loan balance divided by the fair value of the property. The fair value of the underlying commercial properties is updated annually for each mortgage loan. (2) The DSC ratio is calculated using the most recently reported operating income results from property operations divided by annual debt service. LTV Ratios (1) December 31, 2020 Amortized Cost Basis by Origination Year 2020 2019 2018 2017 2016 Prior Total (in millions) Mortgage loans: Commercial: 0% - 50% $ — $ — $ — $ 324 $ 170 $ 505 $ 999 50% - 70% 1,294 357 803 656 2,190 1,697 6,997 70% - 90% 321 457 452 219 203 538 2,190 90% plus — — 12 5 — 288 305 Total commercial $ 1,615 $ 814 $ 1,267 $ 1,204 $ 2,563 $ 3,028 $ 10,491 Agricultural: 0% - 50% $ 218 $ 135 $ 169 $ 157 $ 236 $ 652 $ 1,567 50% - 70% 277 129 161 102 124 351 1,144 70% - 90% — — 3 — — 18 21 90% plus — — — — — — — Total agricultural $ 495 $ 264 $ 333 $ 259 $ 360 $ 1,021 $ 2,732 Total mortgage loans: 0% - 50% $ 218 $ 135 $ 169 $ 481 $ 406 $ 1,157 $ 2,566 50% - 70% 1,571 486 964 758 2,314 2,048 8,141 70% - 90% 321 457 455 219 203 556 2,211 90% plus — — 12 5 — 288 305 Total mortgage loans $ 2,110 $ 1,078 $ 1,600 $ 1,463 $ 2,923 $ 4,049 $ 13,223 Debt Service Coverage Ratios (2) December 31, 2020 Amortized Cost Basis by Origination Year 2020 2019 2018 2017 2016 Prior Total (in millions) Mortgage loans: Commercial: Greater than 2.0x $ 1,230 $ 492 $ 772 $ 268 $ 1,942 $ 1,230 $ 5,934 1.8x to 2.0x 227 83 118 378 184 329 1,319 1.5x to 1.8x 98 138 187 479 437 616 1,955 1.2x to 1.5x 60 57 154 79 — 658 1,008 1.0x to 1.2x — 44 — — — 123 167 Less than 1.0x — — 36 — — 72 108 Total commercial $ 1,615 $ 814 $ 1,267 $ 1,204 $ 2,563 $ 3,028 $ 10,491 Agricultural: Greater than 2.0x $ 67 $ 26 $ 36 $ 38 $ 71 $ 167 $ 405 1.8x to 2.0x 38 35 14 15 20 82 204 1.5x to 1.8x 117 38 41 45 52 209 502 1.2x to 1.5x 183 120 141 90 142 313 989 1.0x to 1.2x 86 35 93 70 57 233 574 Less than 1.0x 4 10 8 1 18 17 58 Total agricultural $ 495 $ 264 $ 333 $ 259 $ 360 $ 1,021 $ 2,732 Total mortgage loans: Greater than 2.0x $ 1,297 $ 518 $ 808 $ 306 $ 2,013 $ 1,397 $ 6,339 1.8x to 2.0x 265 118 132 393 204 411 1,523 1.5x to 1.8x 215 176 228 524 489 825 2,457 1.2x to 1.5x 243 177 295 169 142 971 1,997 1.0x to 1.2x 86 79 93 70 57 356 741 Less than 1.0x 4 10 44 1 18 89 166 Total mortgage loans $ 2,110 $ 1,078 $ 1,600 $ 1,463 $ 2,923 $ 4,049 $ 13,223 _____________ (1) The LTV ratio is derived from current loan balance divided by the fair value of the property. The fair value of the underlying commercial properties is updated annually for each mortgage loan. (2) The DSC ratio is calculated using the most recently reported operating income results from property operations divided by annual debt service. The following tables provide information relating to the LTV and DSC ratios for commercial and agricultural mortgage loans as of June 30, 2021 and December 31, 2020. 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 LTV and DSC Ratios DSC Ratio (2) (3) LTV Ratio (1) (3): Greater than 2.0x 1.8x to 2.0x 1.5x to 1.8x 1.2x to 1.5x 1.0x to 1.2x Less than 1.0x Total (in millions) June 30, 2021: Mortgage loans: Commercial: 0% - 50% $ 959 $ — $ 277 $ — $ 40 $ — $ 1,276 50% - 70% 4,356 1,026 726 585 197 201 7,091 70% - 90% 795 435 201 311 143 271 2,156 90% plus — — — 60 — 164 224 Total commercial $ 6,110 $ 1,461 $ 1,204 $ 956 $ 380 $ 636 $ 10,747 Agricultural: 0% - 50% $ 300 $ 98 $ 289 $ 505 $ 303 $ 28 $ 1,523 50% - 70% 110 114 172 488 245 14 1,143 70% - 90% — 2 — — — 15 17 90% plus — — — — — — — Total agricultural $ 410 $ 214 $ 461 $ 993 $ 548 $ 57 $ 2,683 Total mortgage loans: 0% - 50% $ 1,259 $ 98 $ 566 $ 505 $ 343 $ 28 $ 2,799 50% - 70% 4,466 1,140 898 1,073 442 215 8,234 70% - 90% 795 437 201 311 143 286 2,173 90% plus — — — 60 — 164 224 Total mortgage loans $ 6,520 $ 1,675 $ 1,665 $ 1,949 $ 928 $ 693 $ 13,430 December 31, 2020: Mortgage loans: Commercial: 0% - 50% $ 839 $ — $ 160 $ — $ — $ — $ 999 50% - 70% 4,095 870 1,452 555 25 — 6,997 70% - 90% 844 449 343 376 142 36 2,190 90% plus 156 — — 77 — 72 305 Total commercial $ 5,934 $ 1,319 $ 1,955 $ 1,008 $ 167 $ 108 $ 10,491 Agricultural: 0% - 50% $ 297 $ 108 $ 291 $ 520 $ 317 $ 34 $ 1,567 50% - 70% 108 94 211 450 257 24 1,144 70% - 90% — 2 — 19 — — 21 90% plus — — — — — — — Total agricultural $ 405 $ 204 $ 502 $ 989 $ 574 $ 58 $ 2,732 DSC Ratio (2) (3) LTV Ratio (1) (3): Greater than 2.0x 1.8x to 2.0x 1.5x to 1.8x 1.2x to 1.5x 1.0x to 1.2x Less than 1.0x Total (in millions) Total mortgage loans: 0% - 50% $ 1,136 $ 108 $ 451 $ 520 $ 317 $ 34 $ 2,566 50% - 70% 4,203 964 1,663 1,005 282 24 8,141 70% - 90% 844 451 343 395 142 36 2,211 90% plus 156 — — 77 — 72 305 Total mortgage loans $ 6,339 $ 1,523 $ 2,457 $ 1,997 $ 741 $ 166 $ 13,223 ______________ (1) The LTV ratio is derived from current loan balance divided by the fair value of the property. The fair value of the underlying commercial properties is updated annually for each mortgage loan. (2) The DSC ratio is calculated using the most recently reported operating income results from property operations divided by annual debt service. (3) Amounts presented at amortized cost basis. |
Age Analysis Of Past Due Mortgage Loans | The following table provides information relating to the aging analysis of past-due mortgage loans as of June 30, 2021 and December 31, 2020, respectively: Age Analysis of Past Due Mortgage Loans (1) Accruing Loans Non-accruing Loans Total Loans Non-accruing Loans with No Allowance Interest Income on Non-accruing Loans Past Due Current Total 30-59 Days 60-89 Days 90 Days or More Total (in millions) June 30, 2021: Mortgage loans: Commercial $ — $ — $ — $ — $ 10,747 $ 10,747 $ — $ 10,747 $ — $ — Agricultural 6 — 74 80 2,603 2,683 — 2,683 — — Total $ 6 $ — $ 74 $ 80 $ 13,350 $ 13,430 $ — $ 13,430 $ — $ — December 31, 2020: Mortgage loans: Commercial $ 162 $ — $ — $ 162 $ 10,329 $ 10,491 $ — $ 10,491 $ — $ — Agricultural 76 7 29 112 2,620 2,732 — 2,732 — — Total $ 238 $ 7 $ 29 $ 274 $ 12,949 $ 13,223 $ — $ 13,223 $ — $ — _______________ (1) Amounts presented at amortized cost basis. |
Net Investment Income (Loss) from Equity and Trading Securities | The table below presents a breakdown of unrealized and realized gains and (losses) on equity securities during the three and six months ended June 30, 2021. Unrealized and Realized Gains (Losses) from Equity Securities (1) Three Months Ended June 30, Six Months Ended June 30, 2021 2021 (in millions) Net investment gains (losses) recognized during the period on securities held at the end of the period $ 3 $ 20 Net investment gains (losses) recognized on securities sold during the period 10 4 Unrealized and realized gains (losses) on equity securities $ 13 $ 24 ______________ (1) Effective January 1, 2021, certain preferred stock have been reclassified to other equity investments (see Note 2 Significant Accounting Policies – Investments). The table below shows a breakdown of net investment income (loss) from trading securities during the three and six months ended June 30, 2021 and 2020: Net Investment Income (Loss) from Trading Securities Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (in millions) Net investment gains (losses) recognized during the period on securities held at the end of the period $ (168) $ 250 $ (217) $ 87 Net investment gains (losses) recognized on securities sold during the period 153 14 175 17 Unrealized and realized gains (losses) on trading securities (15) 264 (42) 104 Interest and dividend income from trading securities 40 45 76 94 Net investment income (loss) from trading securities $ 25 $ 309 $ 34 $ 198 |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments by Category | The tables below present quantitative disclosures about the Company’s derivative instruments which have not been designated in hedging relationships, including those embedded in other contracts required to be accounted for as derivative instruments. Derivative Instruments by Category June 30, 2021 Six Months Ended June 30, 2021 Fair Value Notional Derivative Assets Derivative Net Derivative (in millions) Derivative instruments: Freestanding derivatives (1): Equity contracts: Futures $ 2,927 $ — $ — $ (459) Swaps 13,308 4 — (2,606) Options 54,224 11,007 4,604 2,344 Interest rate contracts: Swaps (8) 6,292 75 575 (2,470) Futures 9,550 — — (796) Swaptions — — — — Credit contracts: Credit default swaps 766 5 2 2 Other freestanding contracts: Foreign currency contracts 1,305 2 19 — Margin — 46 — — Collateral — 145 5,872 — Embedded derivatives: Amounts due from reinsurers (9) — 5,510 — 242 GMIB reinsurance contracts (3) — 2,290 — (566) GMxB derivative features liability (4) — — 8,455 2,686 SCS, SIO, MSO and IUL indexed features (5) — — 5,955 (2,286) Total derivative instruments $ 88,372 $ 19,084 $ 25,482 Net derivative gains (losses) (6) $ (3,909) ______________ (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 GMIB reinsurance contract asset in the consolidated balance sheets. (4) Reported in future policy benefits and other policyholders’ liabilities in the consolidated balance sheets. (5) Reported in policyholders’ account balances in the consolidated balance sheets. (6) Investment fees of $7 million are reported in net derivative gains (losses) in the consolidated statements of income (loss). (7) Decrease in futures and swaps notional as of June 30, 2021 primarily due to the Venerable transaction (see Note 1 Organization). (8) Includes the balance and results of the swaps used to hedge TIPS bonds except for the amount currently deferred in OCI. (9) Represents GMIB NLG ceded related to the Venerable transaction. Derivative Instruments by Category December 31, 2020 Six Months Ended June 30, 2020 Fair Value Notional Derivative Assets Derivative Liabilities Net Derivative Gains (Losses) (2) (in millions) Derivative instruments: Freestanding derivatives (1): Equity contracts: Futures $ 4,267 $ — $ — $ (126) Swaps 22,404 6 — 963 Options 35,786 8,383 3,715 (1,387) Interest rate contracts: Swaps (7) 23,773 551 653 3,658 Futures 18,161 — — 2,072 Swaptions — — — 9 Credit contracts: Credit default swaps 919 8 1 (7) Other freestanding contracts: Foreign currency contracts 347 — — (3) Margin — 26 66 — Collateral — 212 3,835 — Embedded derivatives: GMIB reinsurance contracts (3) — 2,859 — 1,026 GMxB derivative features liability (4) — — 10,936 (3,952) SCS, SIO, MSO and IUL indexed features (5) — — 4,378 1,377 Total derivative instruments $ 105,657 $ 12,045 $ 23,584 Net derivative gains (losses) $ 3,630 ______________ (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 GMIB reinsurance contract asset in the consolidated balance sheets. (4) Reported in future policy benefits and other policyholders’ liabilities in the consolidated balance sheets. (5) Reported in policyholders’ account balances in the consolidated balance sheets. (6) Investment fees of $6 million are reported in net derivative gains (losses) in the consolidated statements of income (loss). |
Offsetting Financial Assets and Liabilities and Derivative Instruments | The following tables presents information about the Company’s offsetting of financial assets and liabilities and derivative instruments as of June 30, 2021 and December 31, 2020: Offsetting of Financial Assets and Liabilities and Derivative Instruments As of June 30, 2021 Gross Amount Recognized Gross Amount Offset in the Balance Sheets Net Amount Presented in the Balance Sheets Gross Amount not Offset in the Balance Sheets (1) Net Amount (in millions) Assets: Derivative assets $ 11,283 $ 10,199 $ 1,084 $ (823) $ 261 Other financial assets 1,423 — 1,423 — 1,423 Other invested assets $ 12,706 $ 10,199 $ 2,507 $ (823) $ 1,684 Liabilities: Derivative liabilities $ 10,250 $ 10,199 $ 51 $ — $ 51 Other financial liabilities 2,073 — 2,073 — 2,073 Other liabilities $ 12,323 $ 10,199 $ 2,124 $ — $ 2,124 ______________ (1) Financial instruments sent (held). As of December 31, 2020 Gross Amount Recognized Gross Amount Offset in the Balance Sheets Net Amount Presented in the Balance Sheets Gross Amount not Offset in the Balance Sheets (1) Net Amount (in millions) Assets: Derivative assets $ 9,186 $ 8,206 $ 980 $ (53) $ 927 Other financial instruments 1,403 — 1,403 — 1,403 Other invested assets $ 10,589 $ 8,206 $ 2,383 $ (53) $ 2,330 Liabilities: Derivative liabilities $ 8,218 $ 8,206 $ 12 $ — $ 12 Other financial liabilities 1,568 — 1,568 — 1,568 Other liabilities $ 9,786 $ 8,206 $ 1,580 $ — $ 1,580 ______________ (1) Financial instruments sent (held). |
CLOSED BLOCK (Tables)
CLOSED BLOCK (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Closed Block Disclosure [Abstract] | |
Schedule of Closed Block Assets and Liabilities | Summarized financial information for the Company’s Closed Block is as follows: June 30, 2021 December 31, 2020 (in millions) Closed Block Liabilities: Future policy benefits, policyholders’ account balances and other $ 6,059 $ 6,201 Policyholder dividend obligation 72 160 Other liabilities 76 39 Total Closed Block liabilities 6,207 6,400 Assets Designated to the Closed Block: Fixed maturities AFS, at fair value (amortized cost of $3,350 and $3,359) (allowance for credit losses of $0) 3,629 3,718 Mortgage loans on real estate (net of allowance for credit losses of $5 and $6) 1,767 1,773 Policy loans 630 648 Cash and other invested assets 8 28 Other assets 117 169 Total assets designated to the Closed Block 6,151 6,336 Excess of Closed Block liabilities over assets designated to the Closed Block 56 64 Amounts included in AOCI: Net unrealized investment gains (losses), net of policyholders’ dividend obligation: $72 and $160; and net of income tax: $(44) and $(42) 174 167 Maximum future earnings to be recognized from Closed Block assets and liabilities $ 230 $ 231 |
Closed Block Operations, Net Results | The Company’s Closed Block revenues and expenses were as follows: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (in millions) Revenues: Premiums and other income $ 37 $ 40 $ 76 $ 82 Net investment income (loss) 60 63 120 129 Investment gains (losses), net 2 (2) 2 (2) Total revenues 99 101 198 209 Benefits and Other Deductions: Policyholders’ benefits and dividends 90 103 196 206 Other operating costs and expenses — 1 1 1 Total benefits and other deductions 90 104 197 207 Net income (loss), before income taxes 9 (3) 1 2 Income tax (expense) benefit — (1) (1) (1) Net income (loss) $ 9 $ (4) $ — $ 1 |
Closed Block Dividend Obligation | A reconciliation of the Company’s policyholder dividend obligation follows: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (in millions) Beginning balance $ 28 $ 2 $ 160 $ 2 Unrealized investment gains (losses) 44 — (88) — Ending balance $ 72 $ 2 $ 72 $ 2 |
INSURANCE LIABILITIES (Tables)
INSURANCE LIABILITIES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Insurance [Abstract] | |
GMDB and GMIB Liabilities and Other Policyholder's Liabilities | Change in Liability for Variable Annuity Contracts with GMDB and GMIB Features and No NLG Feature Three and Six Months Ended June 30, 2021 and 2020 GMDB GMIB Direct Ceded Direct Ceded (in millions) Balance, April 1, 2021 $ 5,083 $ (81) $ 5,966 $ (2,133) Paid guarantee benefits (114) 19 (93) 13 Other changes in reserve 171 (43) 72 (183) Impact of the Venerable transaction (1) — (2,176) — (2,141) Balance, June 30, 2021 $ 5,140 $ (2,281) $ 5,945 $ (4,444) Balance, April 1, 2020 $ 5,041 $ (105) $ 6,272 $ (3,305) Paid guarantee benefits (140) 4 (103) 17 Other changes in reserve 97 3 (48) (145) Balance, June 30, 2020 $ 4,998 $ (98) $ 6,121 $ (3,433) GMDB GMIB Direct Ceded Direct Ceded (in millions) Balance, January 1, 2021 $ 5,093 $ (84) $ 6,025 $ (2,859) Paid guarantee benefits (247) 23 (184) 26 Other changes in reserve 294 (44) 104 530 Impact of the Venerable transaction (1) — (2,176) — (2,141) Balance, June 30, 2021 $ 5,140 $ (2,281) $ 5,945 $ (4,444) Balance, January 1, 2020 $ 4,775 $ (99) $ 4,671 $ (2,466) Paid guarantee benefits (251) 9 (177) 37 Other changes in reserve 474 (8) 1,627 (1,004) Balance, June 30, 2020 $ 4,998 $ (98) $ 6,121 $ (3,433) ____________ (1) Includes the impact as of June 1, 2021 on the ceded reserves to Venerable. See Note 1- Organization, for details on the Venerable transaction. |
Variable Annuity Contracts with GMDB and GMIB Features | Account Values and NAR for direct variable annuity contracts in force with GMDB and GMIB features as of June 30, 2021 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 as of June 30, 2021 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 $ 15,874 $ 85 $ 53 $ 161 $ 16,173 Separate Accounts 58,239 9,937 3,450 35,088 106,714 Total Account Values $ 74,113 $ 10,022 $ 3,503 $ 35,249 $ 122,887 NAR, gross $ 91 $ 28 $ 1,406 $ 15,645 $ 17,170 NAR, net of amounts reinsured $ 88 $ 24 $ 983 $ 7,918 $ 9,013 Average attained age of policyholders (in years) 51.4 68.7 75.2 70.6 55.3 Percentage of policyholders over age 70 11.5% 50.0% 71.4% 55.9% 20.5% 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 $ — $ — $ 16 $ 211 $ 227 Separate Accounts — — 26,142 37,582 63,724 Total Account Values $ — $ — $ 26,158 $ 37,793 $ 63,951 NAR, gross $ — $ — $ 669 $ 8,793 $ 9,462 NAR, net of amounts reinsured $ — $ — $ 215 $ 3,605 $ 3,820 Average attained age of policyholders (in years) N/A N/A 64.6 70.5 68.3 Weighted average years remaining until annuitization N/A N/A 5.7 0.6 2.5 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 June 30, 2021 December 31, 2020 Mutual Fund Type GMDB GMIB GMDB GMIB (in millions) Equity $ 51,366 $ 20,039 $ 46,850 $ 18,771 Fixed income 5,451 2,607 5,506 2,701 Balanced 48,804 40,811 47,053 39,439 Other 1,093 267 1,111 275 Total $ 106,714 $ 63,724 $ 100,520 $ 61,186 |
No Lapse Guarantee Liabilities | The change in the NLG liabilities, reflected in future policy benefits and other policyholders’ liabilities in the consolidated balance sheets, is summarized in the table below. 2021 2020 Direct Liability Reinsurance Ceded Net Direct Liability Reinsurance Ceded Net (in millions) Balance, April 1, $ 1,045 $ (901) $ 144 $ 920 $ (827) $ 93 Paid guarantee benefits (13) — (13) (13) — (13) Other changes in reserves 32 (8) 24 34 (14) 20 Balance, June 30, $ 1,064 $ (909) $ 155 $ 941 $ (841) $ 100 Balance, January 1, $ 1,016 $ (883) $ 133 $ 894 $ (808) $ 86 Paid guarantee benefits (28) — (28) (26) — (26) Other changes in reserves 76 (26) 50 73 (33) 40 Balance, June 30, $ 1,064 $ (909) $ 155 $ 941 $ (841) $ 100 |
FAIR VALUE DISCLOSURES (Tables)
FAIR VALUE DISCLOSURES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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. Fair Value Measurements as of June 30, 2021 Level 1 Level 2 Level 3 Total (in millions) Assets: Investments: Fixed maturities, AFS: Corporate (1) $ — $ 44,686 $ 1,249 $ 45,935 U.S. Treasury, government and agency — 16,298 — 16,298 States and political subdivisions — 537 37 574 Foreign governments — 952 — 952 Residential mortgage-backed (2) — 109 — 109 Asset-backed (3) — 4,777 127 4,904 Commercial mortgage-backed — 1,584 11 1,595 Redeemable preferred stock — 84 — 84 Total fixed maturities, AFS — 69,027 1,424 70,451 Other equity investments 302 247 3 552 Trading securities 223 632 — 855 Other invested assets: Short-term investments — 5 1 6 Assets of consolidated VIEs/VOEs — — 10 10 Swaps — (513) — (513) Credit default swaps — 3 — 3 Options — 6,403 — 6,403 Total other invested assets — 5,898 11 5,909 Cash equivalents 895 308 — 1,203 Amounts due from reinsurer (5) — — 5,510 5,510 GMIB reinsurance contracts asset — — 2,290 2,290 Separate Accounts assets (4) 139,412 2,585 1 141,998 Total Assets $ 140,832 $ 78,697 $ 9,239 $ 228,768 Liabilities: GMxB derivative features’ liability $ — $ — $ 8,455 $ 8,455 SCS, SIO, MSO and IUL indexed features’ liability — 5,955 — 5,955 Total Liabilities $ — $ 5,955 $ 8,455 $ 14,410 ______________ (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, credit risk transfer securities and other asset types. (4) Separate Accounts assets included in the fair value hierarchy exclude investments in entities that calculate NAV per share (or its equivalent) as a practical expedient. Such investments excluded from the fair value hierarchy include investments in real estate. As of June 30, 2021 the fair value of such investments was $379 million. (5) This represents GMIB NLG ceded reserves related to Venerable transaction. See Note 1- Organization for details of the Venerable transaction. Fair Value Measurements as of December 31, 2020 Level 1 Level 2 Level 3 Total (in millions) Assets: Investments: Fixed maturities, AFS: Corporate (1) $ — $ 51,415 $ 1,687 $ 53,102 U.S. Treasury, government and agency — 15,943 — 15,943 States and political subdivisions — 535 39 574 Foreign governments — 1,103 — 1,103 Residential mortgage-backed (2) — 131 — 131 Asset-backed (3) — 3,636 20 3,656 Commercial mortgage-backed — 1,203 — 1,203 Redeemable preferred stock 402 239 — 641 Total fixed maturities, AFS 402 74,205 1,746 76,353 Other equity investments 13 — 2 15 Trading securities 285 5,055 — 5,340 Other invested assets: Short-term investments — 82 1 83 Assets of consolidated VIEs/VOEs — — 12 12 Swaps — (96) — (96) Credit default swaps — 7 — 7 Options — 4,668 — 4,668 Total other invested assets — 4,661 13 4,674 Cash equivalents 1,183 287 — 1,470 GMIB reinsurance contracts asset — — 2,859 2,859 Separate Accounts assets (4) 130,106 2,668 1 132,775 Total Assets $ 131,989 $ 86,876 $ 4,621 $ 223,486 Liabilities: GMxB derivative features’ liability $ — $ — $ 10,936 $ 10,936 SCS, SIO, MSO and IUL indexed features’ liability — 4,378 — 4,378 Total Liabilities $ — $ 4,378 $ 10,936 $ 15,314 ______________ (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. |
Reconciliation of Assets and Liabilities at Level 3 | The tables below present reconciliations for all Level 3 assets and liabilities for the three and six months ended June 30, 2021 and 2020, respectively. Level 3 Instruments - Fair Value Measurements Corporate State and Political Subdivisions CMBS Asset-backed (in millions) Balance, April 1, 2021 $ 1,242 $ 38 $ 4 $ 65 Total gains and (losses), realized and unrealized, included in: Net income (loss) as: Net investment income (loss) 2 — — — Investment gains (losses), net (7) — — — Subtotal (5) — — — Other comprehensive income (loss) 17 — — — Purchases 294 — 7 73 Sales (135) (1) — (11) Transfers into Level 3 (1) — — — — Transfers out of Level 3 (1) (164) — — — Balance, Balance, June 30, 2021 $ 1,249 $ 37 $ 11 $ 127 Balance, April 1, 2020 $ 1,174 $ 36 $ — $ 40 Total gains and (losses), realized and unrealized, included in: Net income (loss) as: Net investment income (loss) 1 — — — Investment gains (losses), net (11) — — — Subtotal (10) — — — Other comprehensive income (loss) 6 5 — 8 Purchases 284 — — (48) Sales (44) (1) — — Transfers into Level 3 (1) 219 — — — Transfers out of Level 3 (1) 23 — — — Balance, June 30, 2020 $ 1,652 $ 40 $ — $ — Corporate State and Political Subdivisions CMBS Asset-backed (in millions) Balance, January 1, 2021 $ 1,687 $ 39 $ — $ 20 Total gains and (losses), realized and unrealized, included in: Net income (loss) as: Net investment income (loss) 3 — — — Investment gains (losses), net (13) — — — Subtotal (10) — — — Other comprehensive income (loss) 26 (1) — — Purchases 459 — 11 123 Sales (202) (1) — (16) Transfers into Level 3 (1) 2 — — — Transfers out of Level 3 (1) (713) — — — Balance, June 30, 2021 $ 1,249 $ 37 $ 11 $ 127 Balance, January 1, 2020 $ 1,246 $ 39 $ — $ 100 Total gains and (losses), realized and unrealized, included in: Net income (loss) as: Net investment income (loss) 2 — — — Investment gains (losses), net (13) — — — Subtotal (11) — — — Other comprehensive income (loss) (54) 2 — — Purchases 345 — — — Sales (90) (1) — — Transfers into Level 3 (1) 219 — — — Transfers out of Level 3 (1) (3) — — (100) Balance, June 30, 2020 $ 1,652 $ 40 $ — $ — ______________ (1) Transfers into/out of the Level 3 classification are reflected at beginning-of-period fair values. Other Equity Investments Amounts Due from Reinsurers GMIB Reinsurance Contract Asset Separate Accounts Assets GMxB Derivative Features Liability (in millions) Balance, April 1, 2021 $ 12 $ — $ 2,133 $ — $ (7,681) Realized and unrealized gains (losses), included in Net income (loss) as: Investment gains (losses), net 2 242 — — — Net derivative gains (losses) (1) — 158 — (671) Total realized and unrealized gains (losses) 2 242 158 — (671) Other comprehensive income (loss) (1) — — — — Purchases (2) — 10 10 1 (118) Sales (3) — (1) (11) — 15 Other (5) — 5,259 — — — Activity related to consolidated VIEs/VOEs — — — — — Transfers into Level 3 (4) — — — — — Transfers out of Level 3 (4) — — — — — Balance, Balance, June 30, 2021 $ 13 $ 5,510 $ 2,290 $ 1 $ (8,455) Balance, April 1, 2020 $ 15 $ — $ 3,305 $ — $ (9,580) Realized and unrealized gains (losses), included in Net income (loss) as: Investment gains (losses), net — — — — — Net derivative gains (losses) — — 133 — (2,786) Total realized and unrealized gains (losses) — — 133 — (2,786) Other comprehensive income (loss) — — — — — Purchases (2) 1 — 12 — (107) Sales (3) — — (17) — 15 Settlements — — — — — Activity related to consolidated VIEs/VOEs — — — — — Transfers into Level 3 (4) — — — — — Transfers out of Level 3 (4) — — — — — Balance, June 30, 2020 $ 16 $ — $ 3,433 $ — $ (12,458) Other Equity Investments Amounts Due from Reinsurers GMIB Reinsurance Contract Asset Separate Accounts Assets GMxB Derivative Features Liability (in millions) Balance, January 1, 2021 $ 15 $ — $ 2,859 $ 1 $ (10,936) Realized and unrealized gains (losses), included in Net income (loss) as: Investment gains (losses), net 1 242 — — — Net derivative gains (losses) (1) — — (566) — 2,686 Total realized and unrealized gains (losses) 1 242 (566) — 2,686 Purchases (2) — 10 22 1 (235) Sales (3) — (1) (25) — 30 Settlements — — — — — Other (5) — 5,259 — — — Activity related to consolidated VIEs/VOEs (2) — — — — Transfers into Level 3 (4) — — — — — Transfers out of Level 3 (4) (1) — — (1) — Balance, June 30, 2021 $ 13 $ 5,510 $ 2,290 $ 1 $ (8,455) Balance, January 1, 2020 $ 16 $ — $ 2,466 $ — $ (8,316) Realized and unrealized gains (losses), included in Net income (loss) as: Investment gains (losses), net — — — — — Net derivative gains (losses) — — 1,026 — (3,952) Total realized and unrealized gains (losses) — — 1,026 — (3,952) Purchases (2) 1 — 23 — (215) Sales (3) — — (37) — 25 Settlements — — — — — Change in estimate — — (45) — — Activity related to consolidated VIEs/VOEs (1) — — — — Transfers into Level 3 (4) — — — — — Transfers out of Level 3 (4) — — — — — Balance, June 30, 2020 $ 16 $ — $ 3,433 $ — $ (12,458) ______________ (1) For the three and six months ended June 30, 2021, the Company’s non-performance risk impact of $(60) million and $24 million for the GMxB Derivative Features Liability, $17 million and $1 million for the GMIB Reinsurance Contract Asset, and $12 million and $12 million for the Amounts due from Reinsurers, respectively, is recorded through Net derivative gains (losses). (2) For the GMIB reinsurance contract asset, Amounts Due from Reinsurers and GMxB derivative features liability, represents attributed fee. (3) For the GMIB reinsurance contract asset and Amounts Due from Reinsurers, represents recoveries from reinsurers and for GMxB derivative features liability represents benefits paid. (4) Transfers into/out of the Level 3 classification are reflected at beginning-of-period fair values. (5) Represents the opening ceded balance from the Venerable transaction of the GMxB with no lapse guarantee riders. The table below details changes in unrealized gains (losses) for the six months ended June 30, 2021 and 2020 by category for Level 3 assets and liabilities still held as of June 30, 2021 and 2020, respectively. Change in Unrealized Gains (Losses) for Level 3 Instruments Net Income (Loss) Net Derivative Gains (Losses) OCI (in millions) Held at June 30, 2021: Net Income (Loss) Net Derivative Gains (Losses) OCI (in millions) Change in unrealized gains (losses): Fixed maturities, AFS: Corporate $ — $ 27 State and political subdivisions — (1) Total fixed maturities, AFS — 26 Amounts Due from Reinsurers 242 — GMIB reinsurance contracts (566) — GMxB derivative features liability 2,686 — Total $ 2,362 $ 26 Held at June 30, 2020: Change in unrealized gains (losses): Fixed maturities, AFS: Corporate $ — $ (54) State and political subdivisions — 2 Asset-backed — — Total fixed maturities, AFS — (52) GMIB reinsurance contracts 1,026 — Separate Account assets — — GMxB derivative features liability (3,952) — Total $ (2,926) $ (52) |
Quantitative Information About Level 3 Fair Value Measurement | The following tables disclose quantitative information about Level 3 fair value measurements by category for assets and liabilities as of June 30, 2021 and December 31, 2020, respectively. Quantitative Information about Level 3 Fair Value Measurements as of June 30, 2021 Fair Valuation Technique Significant Range Weighted Average (2) (in millions) Assets: Investments: Fixed maturities, AFS: Corporate $ 146 Matrix pricing model Spread over Benchmark 20 - 320 bps 95 bps 799 Market comparable companies EBITDA multiples Discount Rate Cashflow Multiples 4.5x - 26.5x 5.88% - 14.58% 0.4x - 16.9x 11.2x 9.0% 6.3x Other equity investments 3 Market comparable companies Revenue multiple 8.5x - 11.0x 10.5x Fair Valuation Technique Significant Range Weighted Average (2) GMIB reinsurance contract asset 2,290 Discounted cash flow Lapse rates Withdrawal Rates GMIB Utilization Rates Non-performance risk Volatility rates - Equity Mortality: Ages 0-40 Ages 41-60 Ages 61-115 0.56% - 15.62% 0.36% - 2.03% 0.04% - 60.91% 43 bps - 85 bps 9% - 28% 0.01% - 0.18% 0.07% - 0.54% 0.42% - 42.20% 1.89% 0.88% 5.25% 48 bps 24% 2.94% (same for all ages) (same for all ages) Amount Due from Reinsurers 5,510 Discounted Cash Flow Lapse rates Withdrawal Rates GMIB Utilization Rates Non-performance risk (bps) Volatility rates - Equity Mortality: Ages 0-40 Ages 41-60 Ages 61-115 0.56% - 15.62% 0.36% - 2.03% 0.04% - 60.91% 34 bps - 34 bps 9% - 28% 0.01% - 0.18% 0.07% - 0.54% 0.42% - 42.20% 1.79% 1.09% 7.14% 34 bps 24% 2.21% (same for all ages) (same for all ages) Liabilities: GMIBNLG 8,378 Discounted cash flow Non-performance risk Lapse Withdrawal Annuitization Mortality (1): Ages 0-40 Ages 41-60 Ages 61-115 98 bps - 98 bps 1.10% - 25.67% 0.36% - 2.03% 0.03% - 100.00% 0.01% - 0.19% 0.06% - 0.53% 0.41% - 41.39% 98 bps 3.37% 0.93% 5.16% 1.66% (same for all ages) (same for all ages) GWBL/GMWB 139 Discounted cash flow Lapse rates Withdrawal Rates Utilization Rates Volatility rates - Equity Non-performance risk 0.80% - 15.62% 0.00% - 8.00% 100% once starting 9% - 28% 98 bps - 98 bps 1.89% 0.88% 24% GIB (60) Discounted cash flow Lapse rates Withdrawal Rates Utilization Rates Volatility rates - Equity Non-performance risk 0.80% - 15.62% 0.18% - 2.03% 0.04% - 100.00% 9% - 28% 98 bps - 98 bps 1.89% 0.88% 5.25% 24% GMAB (2) Discounted cash flow Lapse rates Volatility rates - Equity Non-performance risk 0.80% - 15.62% 9% - 28% 98 bps - 98 bps 1.89% 24% ______________ (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. (2) For lapses, withdrawals, and utilizations the rates were weighted by counts, for mortality weighted average rates are shown for all ages combined and for withdrawals the weighted averages were based on an estimated split of partial withdrawal and dollar-for-dollar withdrawals. Quantitative Information about Level 3 Fair Value Measurements as of December 31, 2020 Fair Value Valuation Technique Significant Unobservable Input Range Weighted Average (in millions) Assets: Investments: Fixed maturities, AFS: Corporate $ 28 Matrix pricing model Spread over benchmark 45 - 195 bps 152 bps 1,148 Market comparable companies EBITDA multiples Cash flow multiples 3.5x - 33.1x 5.6% - 28.4% 1.9x -25.0x 10.8x 8.6% 6.8x Other equity investments 2 Market comparable companies Revenue multiple 9.7x - 26.4x 18.5x GMIB reinsurance contract asset 2,859 Discounted cash flow Non-performance risk Lapse rates Withdrawal rates Utilization rates Volatility rates - Equity Mortality rates (1): Ages 0 - 40 Ages 41 - 60 Ages 61 - 115 43 - 85 bps 0.6%-16% 0%-2% 0%-61% 7%-32% 0.01%-0.18% 0.07%-0.54% 0.42%-42.20% 50 bps 1.69% 0.91% 5.82% 24% 2.80% (same for all ages) (same for all ages) Liabilities: GMIBNLG 10,713 Discounted cash flow Non-performance risk Lapse rates Withdrawal rates Annuitization rates Mortality rates (1): Ages 0 - 40 Ages 41 - 60 Ages 61 - 115 96.0 bps 1.1%-25.7% 0.4%-2% 0%-100% 0.01%-0.19% 0.06%-0.53% 0.41%-41.39% 3.19% 0.93% 5.51% 1.56% (same for all ages) (same for all ages) GWBL/GMWB 190 Discounted cash flow Non-performance risk Lapse rates Withdrawal rates Utilization rates Volatility rates - Equity 96.0 bps 0.8%-16% 0%-8% 100% once starting 7%-32% 1.69% 0.91% 24% GIB 31 Discounted cash flow Non-performance risk Lapse rates Withdrawal rates Utilization rates Volatility rates - Equity 96.0 bps 0.8%-15.6% 0%-2% 0%-100% 7%-32% 1.69% 0.91% 5.82% 24% GMAB 2 Discounted cash flow Non-performance risk Lapse rates Volatility rates - Equity 96.0 bps 0.8%-16% 7%-32% 1.69% 24% ______________ (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 | The carrying values and fair values as of June 30, 2021 and December 31, 2020 for financial instruments not otherwise disclosed in Note 3 and Note 4 are presented in the table below: Carrying Values and Fair Values for Financial Instruments Not Otherwise Disclosed Carrying Value Fair Value Level 1 Level 2 Level 3 Total (in millions) June 30, 2021: Mortgage loans on real estate $ 13,367 $ — $ — $ 13,683 $ 13,683 Policy loans $ 3,562 $ — $ — $ 4,586 $ 4,586 Loans to affiliates $ 1,900 $ — $ 1,923 $ — $ 1,923 Policyholders’ liabilities: Investment contracts $ 1,989 $ — $ — $ 2,133 $ 2,133 FHLB funding agreements $ 8,213 $ — $ 8,279 $ — $ 8,279 FABN funding agreements $ 4,736 $ — $ 4,738 $ — $ 4,738 Separate Accounts liabilities $ 11,424 $ — $ — $ 11,424 $ 11,424 December 31, 2020: Mortgage loans on real estate $ 13,142 $ — $ — $ 13,474 $ 13,474 Policy loans $ 3,635 $ — $ — $ 4,794 $ 4,794 Loans to affiliates $ 900 $ — $ 938 $ — $ 938 Policyholders’ liabilities: Investment contracts $ 2,069 $ — $ — $ 2,275 $ 2,275 FHLB funding agreements $ 6,897 $ — $ 6,990 $ — $ 6,990 FABN funding agreements $ 1,939 $ — $ 1,971 $ — $ 1,971 Separate Accounts liabilities $ 10,081 $ — $ — $ 10,081 $ 10,081 |
EQUITY (Tables)
EQUITY (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | AOCI represents cumulative gains (losses) on items that are not reflected in net income (loss). The balances as of June 30, 2021 and December 31, 2020 follow: June 30, December 31, 2021 2020 (in millions) Unrealized gains (losses) on investments $ 2,645 $ 4,600 Defined benefit pension plans (5) (5) Accumulated other comprehensive income (loss) attributable to Equitable Financial $ 2,640 $ 4,595 |
Components of Accumulated Other Comprehensive Income (Loss), Net of Taxes | The components of OCI, net of taxes for the three and six months ended June 30, 2021 and 2020, follow: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (in millions) Change in net unrealized gains (losses) on investments: Net unrealized gains (losses) arising during the period $ 1,744 $ 2,633 $ (2,124) $ 4,229 (Gains) losses reclassified into net income (loss) during the period (1) (314) (134) (478) (182) Net unrealized gains (losses) on investments 1,430 2,499 (2,602) 4,047 Adjustments for policyholders’ liabilities, DAC, insurance liability loss recognition and other (271) (929) 647 (967) Change in unrealized gains (losses), net of adjustments (net of deferred income tax expense (benefit) of $308, $416, $(520) and $819) 1,159 1,570 (1,955) 3,080 Other comprehensive income (loss), attributable to Equitable Financial $ 1,159 $ 1,570 $ (1,955) $ 3,080 ____________ (1) See “Reclassification adjustments” in Note 3. Reclassification amounts presented net of income tax expense (benefit) of $83 million, $35 million , $127 million and $48 million for the three and six months ended June 30, 2021 and 2020, respectively. |
REDEEMABLE NONCONTROLLING INT_2
REDEEMABLE NONCONTROLLING INTEREST (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Noncontrolling Interest [Abstract] | |
Redeemable Noncontrolling Interest | The changes in the components of redeemable noncontrolling interests are presented in the table that follows: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (in millions) Balance, beginning of period $ 48 $ 32 $ 41 $ 39 Net earnings (loss) attributable to redeemable noncontrolling interests 1 2 1 (3) Purchase/change of redeemable noncontrolling interests (25) 2 (18) — Balance, end of period $ 24 $ 36 $ 24 $ 36 |
COMMITMENTS AND CONTINGENT LI_2
COMMITMENTS AND CONTINGENT LIABILITIES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Activity of Funding Agreements | Change in FHLB Funding Agreements during the Six Months Ended June 30, 2021 Outstanding Balance at December 31, 2020 Issued During the Period Repaid During the Period Long-term Agreements Maturing Within One Year Long-term Agreements Maturing Within Five Years Outstanding Balance at June 30, 2021 (in millions) Short-term funding agreements: Due in one year or less $ 5,634 $ 32,276 $ 30,948 $ 227 $ — $ 7,189 Long-term funding agreements: Due in years two through five 722 — — (227) 409 904 Due in more than five years 534 — — — (409) 125 Total long-term funding agreements 1,256 — — (227) — 1,029 Total funding agreements (1) $ 6,890 $ 32,276 $ 30,948 $ — $ — $ 8,218 ____________ (1) The $6 million and $7 million difference between the funding agreements carrying value shown in fair value table for June 30, 2021 and December 31, 2020, respectively, reflects the remaining amortization of a hedge implemented and closed, which locked in the funding agreements borrowing rates. Change in FABN Funding Agreements during the Six Months Ended June 30, 2021 Outstanding Balance at December 31, 2020 Issued During the Period Repaid During the Period Long-term Agreements Maturing Within One Year Long-term Agreements Maturing Within Five Years Foreign Currency Transaction Adjustment Outstanding Balance at June 30, 2021 (in millions) Short-term funding agreements: Due in one year or less $ — $ — $ — $ — $ — $ — $ — Long-term funding agreements: Due in years two through five 1,150 1,000 — — — — 2,150 Due in more than five years 800 1,809 — — — (17) 2,592 Total long-term funding agreements 1,950 2,809 — — — (17) 4,742 Total funding agreements (1) $ 1,950 $ 2,809 $ — $ — $ — $ (17) $ 4,742 _____________ |
REVISION OF PRIOR PERIOD FINA_2
REVISION OF PRIOR PERIOD FINANCIAL STATEMENTS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Changes and Error Corrections [Abstract] | |
Financial Information Affected by Revisions and Change in Accounting Principle | The following tables present line items for prior period financial statements that have been affected by the revision. For these line items, the tables detail the amounts as previously reported, the impact upon those line items due to the revision, and the amounts as currently revised within the financial statements. June 30, 2020 As Previously Impact of Revisions As Revised (in millions) Consolidated Balance Sheets: Assets: Deferred policy acquisition costs 3,746 (70) 3,676 Total Assets $ 232,378 $ (70) $ 232,308 Liabilities: Future policy benefits and other policyholders’ liabilities 41,382 29 41,411 Current and deferred income taxes 1,020 (21) 999 Total Liabilities $ 217,176 $ 8 $ 217,184 EQUITY Retained earnings 2,658 (78) 2,580 Total equity attributable to Equitable Financial 15,157 (78) 15,079 Total Equity 15,166 (78) 15,088 Total Liabilities, Redeemable Noncontrolling interest and Equity $ 232,378 $ (70) $ 232,308 Three Months Ended June 30, 2020 Six Months Ended June 30, 2020 As Previously Impact of Revisions As Revised As Previously Impact of Revisions As Revised (in millions) Consolidated Statements of Income (Loss) REVENUES Policy charges and fee income $ 825 $ (1) $ 824 $ 1,729 $ — $ 1,729 Net derivative gains (losses) (5,903) (5) (5,908) 3,630 (6) 3,624 Net investment income (loss) 934 (13) 921 1,525 — 1,525 Other income 8 2 10 25 — 25 Total revenues (3,557) (17) (3,574) 8,031 (6) 8,025 BENEFITS AND OTHER DEDUCTIONS Policyholders' benefits 700 (9) 691 3,297 20 3,317 Amortization of deferred policy acquisition costs 164 (15) 149 1,222 (51) 1,171 Other operating costs and expenses 218 — 218 431 1 432 Total benefits and deductions 1,563 (24) 1,539 5,961 (30) 5,931 Income (loss) from continuing operations, before income taxes (5,120) 7 (5,113) 2,070 24 2,094 Income tax (expense) benefit from continuing operations 1,029 (2) 1,027 (425) (5) (430) Net income (loss) (4,091) 5 (4,086) 1,645 19 1,664 Net income (loss) attributable to Equitable Financial $ (4,095) $ 5 $ (4,090) $ 1,648 $ 19 $ 1,667 Three Months Ended June 30, 2020 Six Months Ended June 30, 2020 As Previously Impact of Revisions As Revised As Previously Impact of Revisions As Revised (in millions) Consolidated Statements of Comprehensive Income (Loss) Net income (loss) $ (4,091) $ 5 $ (4,086) $ 1,645 $ 19 $ 1,664 Change in unrealized gains (losses), net of reclassification adjustment 1,569 — 1,569 3,083 (4) 3,079 Other comprehensive income 1,570 — 1,570 3,084 (4) 3,080 Comprehensive income (loss) (2,521) 5 (2,516) 4,729 15 4,744 Less: Comprehensive income (loss) attributable to noncontrolling interest (3) 7 4 (3) — (3) Comprehensive income (loss) attributable to Equitable Financial $ (2,518) $ (2) $ (2,520) $ 4,732 $ 15 $ 4,747 Three Months Ended June 30, 2020 Six Months Ended June 30, 2020 As Previously Impact of Revisions As Revised As Previously Impact of Revisions As Revised (in millions) Consolidated Statements of Equity: Retained earnings, beginning of year $ 7,953 $ (83) $ 7,870 $ 2,242 $ (97) $ 2,145 Net income (loss) attributable to Equitable Financial (4,095) 5 (4,090) 1,648 19 1,667 Retained earnings, end of period $ 2,658 $ (78) $ 2,580 $ 2,658 $ (78) $ 2,580 Accumulated other comprehensive income (loss), beginning of year $ 3,106 $ — $ 3,106 $ 1,592 $ 4 $ 1,596 Other comprehensive income (loss) 1,570 — 1,570 3,084 (4) 3,080 Total Equitable Financial equity, end of period $ 15,157 $ (78) $ 15,079 $ 15,157 $ (78) $ 15,079 Total equity, end of period $ 15,166 $ (78) $ 15,088 $ 15,166 $ (78) $ 15,088 June 30, 2020 As Previously Reported Impact of Revisions As Revised (in millions) Consolidated Statements of Cash Flows: Cash flow from operating activities: Net income (loss) $ 1,645 $ 19 $ 1,664 Adjustments to reconcile Net income (loss) to Net cash provided by (used in) operating activities: Net derivative (gains) losses (3,630) 6 (3,624) Amortization and depreciation 1,181 (51) 1,130 Future policy benefits 1,666 20 1,686 Current and deferred income taxes 433 6 439 Net cash provided by (used in) operating activities (868) — (868) Cash and cash equivalents, end of period $ 4,318 $ — $ 4,318 |
ORGANIZATION - Narrative (Detai
ORGANIZATION - Narrative (Details) | 6 Months Ended | |||
Jun. 30, 2021USD ($)principalSubsidiary | Jun. 01, 2021USD ($) | Dec. 31, 2020USD ($) | Jun. 30, 2020USD ($) | |
Organization [Abstract] | ||||
Number of principal subsidiaries | principalSubsidiary | 2 | |||
Entity Information [Line Items] | ||||
Assets | $ 263,011,000,000 | $ 251,294,000,000 | $ 232,308,000,000 | |
VA Capital Company LLC | Equitable Investment Management Group, LLC | ||||
Entity Information [Line Items] | ||||
Percentage of voting interests acquired | 9.09% | |||
Equitable Financial Life Insurance Company (EFLIC) | Venerable Insurance and Annuity Company (VIAC) | ||||
Entity Information [Line Items] | ||||
Surplus notes | $ 50,000,000 | |||
Corporate Solutions Life Reinsurance Company (CSLRC) | AllianceBernstein (AB) | ||||
Entity Information [Line Items] | ||||
Assets | 9,500,000,000 | |||
Direct insurance liabilities ceded | 9,600,000,000 | |||
Corporate Solutions Life Reinsurance Company (CSLRC) | AllianceBernstein (AB) | GMxB derivative features’ liability | ||||
Entity Information [Line Items] | ||||
Fair value | 5,300,000,000 | |||
Corporate Solutions Life Reinsurance Company (CSLRC) | Alliance Bernstein | ||||
Entity Information [Line Items] | ||||
Separate account, liability, ceded | $ 16,900,000,000 |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES - Investments (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Accounting Policies [Abstract] | ||
Carrying value of COLI | $ 999 | $ 989 |
SIGNIFICANT ACCOUNTING POLICI_5
SIGNIFICANT ACCOUNTING POLICIES - Accounting and Consolidation of Variable Interest Entities (VIEs) (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 |
Variable Interest Entity [Line Items] | |||
Assets | $ 263,011 | $ 251,294 | $ 232,308 |
Investments | 93,160 | 102,195 | |
Consolidated Limited Partnerships | |||
Variable Interest Entity [Line Items] | |||
Assets | 134 | 12 | |
Non-consolidated Vairable Interest Entities | |||
Variable Interest Entity [Line Items] | |||
Assets | 197,300 | 165,800 | |
Investments | 1,900 | 1,300 | |
Variable interest, maximum loss exposure | 1,900 | 1,300 | |
Unfunded commitments | $ 1,300 | $ 1,200 |
SIGNIFICANT ACCOUNTING POLICI_6
SIGNIFICANT ACCOUNTING POLICIES - Assumption Updates and Model Changes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Change in Accounting Estimate [Line Items] | ||||
Policy charges and fee income | $ 890 | $ 824 | $ 1,770 | $ 1,729 |
Policyholders’ benefits | 852 | 691 | 1,675 | 3,317 |
Interest credited to policyholders’ account balances | 286 | 279 | 556 | 568 |
Income (loss) from operations, before income taxes | (185) | (5,113) | (2,380) | 2,094 |
Net income (loss) | $ (173) | $ (4,086) | $ (1,781) | 1,664 |
Long-term Lapses Partial Withdrawal Rates And Election Assumptions Updates | ||||
Change in Accounting Estimate [Line Items] | ||||
Policy charges and fee income | 54 | |||
Policyholders’ benefits | 1,300 | |||
Interest credited to policyholders’ account balances | (6) | |||
Amortization of deferred policy acquisition costs, net | 840 | |||
Income (loss) from operations, before income taxes | (2,100) | |||
Net income (loss) | (1,700) | |||
Economic Scenario Generator | ||||
Change in Accounting Estimate [Line Items] | ||||
Income (loss) from operations, before income taxes | 165 | |||
Net income (loss) | $ 130 | |||
5-year Historical Average Over A 10-year Period | ||||
Change in Accounting Estimate [Line Items] | ||||
Interest rate assumptions | 2.25% | 2.25% |
INVESTMENTS - Narrative (Detail
INVESTMENTS - Narrative (Details) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021USD ($)issuenumberOfLoan | Jun. 30, 2020USD ($)numberOfLoan | Jun. 30, 2021USD ($)issuenumberOfLoan | Jun. 30, 2020USD ($)numberOfLoan | Dec. 31, 2020USD ($)issue | |
Net Investment Income [Line Items] | |||||
Number of unrealized loss positions | issue | 959 | 959 | 537 | ||
Debt securities exposure in single issuer greater than stated percentage of total investments | 0.70% | 0.70% | |||
Gross unrealized losses | $ 18,000,000 | $ 18,000,000 | $ 39,000,000 | ||
Allowance for credit loss | 63,000,000 | $ 66,000,000 | 63,000,000 | $ 66,000,000 | 81,000,000 |
Separate account equity investment carrying value | 44,000,000 | 44,000,000 | 43,000,000 | ||
Fixed Maturities | |||||
Net Investment Income [Line Items] | |||||
Accrued investment income receivable | 445,000,000 | 445,000,000 | |||
Accrued interest, written off | 0 | 0 | |||
Amortized cost | 65,500,000,000 | 65,500,000,000 | 68,100,000,000 | ||
Corporate | |||||
Net Investment Income [Line Items] | |||||
Debt securities exposure in single issuer of total investments | $ 313,000,000 | $ 313,000,000 | $ 338,000,000 | ||
Debt securities exposure in single issuer of total investments, percent | 3.60% | 3.60% | 2.90% | ||
Gross unrealized losses | $ 14,000,000 | $ 14,000,000 | $ 32,000,000 | ||
Commercial Mortgage Loans | |||||
Net Investment Income [Line Items] | |||||
Accrued investment income receivable | 31,000,000 | 31,000,000 | |||
Accrued interest, written off | 0 | 0 | |||
Agricultural Mortgage Loans | |||||
Net Investment Income [Line Items] | |||||
Accrued investment income receivable | 27,000,000 | 27,000,000 | |||
Accrued interest, written off | 0 | 0 | |||
Individually Assessed Mortgage Loans | |||||
Net Investment Income [Line Items] | |||||
Mortgage loans foreclosure probable | 0 | 0 | |||
Allowance for credit loss | $ 0 | $ 0 | |||
Privately Negotiated Fixed Maturity | |||||
Net Investment Income [Line Items] | |||||
Number of troubled debt restructuring | numberOfLoan | 1 | 4 | 1 | 4 | |
Troubled debt restructuring, premodification | $ 9,000,000 | $ 42,000,000 | $ 9,000,000 | $ 42,000,000 | |
Troubled debt restructuring, postmodification | $ 5,000,000 | $ 37,000,000 | $ 5,000,000 | $ 37,000,000 | |
Troubled debt restructuring, percentage of total invested assets | 0.01% | 0.04% | 0.01% | 0.04% | |
Recurring | |||||
Net Investment Income [Line Items] | |||||
Investment gains (losses), net | $ 855,000,000 | $ 855,000,000 | 5,340,000,000 | ||
Other Than Investment Grade | External Credit Rating, Non Investment Grade | Fixed Maturities | |||||
Net Investment Income [Line Items] | |||||
Available-for-sale securities, amortized cost | $ 2,700,000,000 | $ 2,700,000,000 | $ 2,400,000,000 | ||
Percentage of available for sale securities | 4.10% | 4.10% | 3.60% | ||
Unrealized loss on available for sale securities | $ 21,000,000 | $ 21,000,000 | $ 48,000,000 |
INVESTMENTS - Available-for-sal
INVESTMENTS - Available-for-sale Securities (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Debt Securities, Available-for-sale [Line Items] | |||||
Amortized Cost | $ 65,545 | $ 65,545 | $ 68,136 | ||
Allowance for Credit Losses | 26 | 26 | 13 | ||
Gross Unrealized Gains | 5,068 | 5,068 | 8,338 | ||
Gross Unrealized Losses | 136 | 136 | 108 | ||
Fixed maturities available for sale, at fair value | 70,451 | 70,451 | 76,353 | ||
Amortized Cost (Less Allowance for Credit Losses) | |||||
Due in one year or less | 1,963 | 1,963 | |||
Due in years two through five | 15,171 | 15,171 | |||
Due in years six through ten | 15,771 | 15,771 | |||
Due after ten years | 26,004 | 26,004 | |||
Subtotal | 58,909 | 58,909 | |||
Amortized cost | 65,519 | 65,519 | |||
Fair Value | |||||
Due in one year or less | 1,980 | 1,980 | |||
Due in years two through five | 15,977 | 15,977 | |||
Due in years six through ten | 16,976 | 16,976 | |||
Due after ten years | 28,826 | 28,826 | |||
Subtotal | 63,759 | 63,759 | |||
Fixed maturities available for sale, at fair value | 70,451 | 70,451 | 76,353 | ||
Available For Sale Fixed Maturities Proceeds Gross Gains And Gross Losses From Sales And Other Than Temporary Impairments [Abstract] | |||||
Proceeds from sales | 9,531 | $ 2,864 | 16,719 | $ 4,586 | |
Gross gains on sales | 554 | 205 | 845 | 274 | |
Gross losses on sales | (38) | (24) | (154) | (27) | |
Credit losses | (6) | (11) | (12) | (13) | |
Fixed Maturities - Credit Loss Impairments | |||||
Balances, beginning of period | 34 | 17 | 28 | 15 | |
Previously recognized impairments on securities that matured, paid, prepaid or sold | (1) | 0 | (1) | 0 | |
Recognized impairments on securities impaired to fair value this period | 0 | 0 | 0 | 0 | |
Credit losses recognized this period on securities for which credit losses were not previously recognized | 6 | 8 | 8 | 10 | |
Additional credit losses this period on securities previously impaired | 1 | 3 | 5 | 3 | |
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 (for OTTI securities 2019 and prior) | 0 | 0 | 0 | 0 | |
Balances, end of period | 40 | $ 28 | 40 | $ 28 | |
Corporate | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Amortized Cost | 43,004 | 43,004 | 48,501 | ||
Allowance for Credit Losses | 26 | 26 | 13 | ||
Gross Unrealized Gains | 3,071 | 3,071 | 4,703 | ||
Gross Unrealized Losses | 114 | 114 | 89 | ||
Fixed maturities available for sale, at fair value | 45,935 | 45,935 | 53,102 | ||
Fair Value | |||||
Fixed maturities available for sale, at fair value | 45,935 | 45,935 | 53,102 | ||
U.S. Treasury, government and agency | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Amortized Cost | 14,528 | 14,528 | 12,644 | ||
Allowance for Credit Losses | 0 | 0 | 0 | ||
Gross Unrealized Gains | 1,774 | 1,774 | 3,304 | ||
Gross Unrealized Losses | 4 | 4 | 5 | ||
Fixed maturities available for sale, at fair value | 16,298 | 16,298 | 15,943 | ||
Fair Value | |||||
Fixed maturities available for sale, at fair value | 16,298 | 16,298 | 15,943 | ||
States and political subdivisions | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Amortized Cost | 496 | 496 | 482 | ||
Allowance for Credit Losses | 0 | 0 | 0 | ||
Gross Unrealized Gains | 80 | 80 | 92 | ||
Gross Unrealized Losses | 2 | 2 | 0 | ||
Fixed maturities available for sale, at fair value | 574 | 574 | 574 | ||
Fair Value | |||||
Fixed maturities available for sale, at fair value | 574 | 574 | 574 | ||
Foreign governments | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Amortized Cost | 907 | 907 | 1,011 | ||
Allowance for Credit Losses | 0 | 0 | 0 | ||
Gross Unrealized Gains | 54 | 54 | 98 | ||
Gross Unrealized Losses | 9 | 9 | 6 | ||
Fixed maturities available for sale, at fair value | 952 | 952 | 1,103 | ||
Fair Value | |||||
Fixed maturities available for sale, at fair value | 952 | 952 | 1,103 | ||
Residential mortgage-backed | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Amortized Cost | 99 | 99 | 119 | ||
Allowance for Credit Losses | 0 | 0 | 0 | ||
Gross Unrealized Gains | 10 | 10 | 12 | ||
Gross Unrealized Losses | 0 | 0 | 0 | ||
Fixed maturities available for sale, at fair value | 109 | 109 | 131 | ||
Amortized Cost (Less Allowance for Credit Losses) | |||||
Without single maturity date | 99 | 99 | |||
Fair Value | |||||
Without single maturity date | 109 | 109 | |||
Fixed maturities available for sale, at fair value | 109 | 109 | 131 | ||
Asset-backed | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Amortized Cost | 4,876 | 4,876 | 3,633 | ||
Allowance for Credit Losses | 0 | 0 | 0 | ||
Gross Unrealized Gains | 30 | 30 | 28 | ||
Gross Unrealized Losses | 2 | 2 | 5 | ||
Fixed maturities available for sale, at fair value | 4,904 | 4,904 | 3,656 | ||
Amortized Cost (Less Allowance for Credit Losses) | |||||
Without single maturity date | 4,876 | 4,876 | |||
Fair Value | |||||
Without single maturity date | 4,904 | 4,904 | |||
Fixed maturities available for sale, at fair value | 4,904 | 4,904 | 3,656 | ||
Commercial mortgage-backed | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Amortized Cost | 1,564 | 1,564 | 1,148 | ||
Allowance for Credit Losses | 0 | 0 | 0 | ||
Gross Unrealized Gains | 36 | 36 | 55 | ||
Gross Unrealized Losses | 5 | 5 | 0 | ||
Fixed maturities available for sale, at fair value | 1,595 | 1,595 | 1,203 | ||
Amortized Cost (Less Allowance for Credit Losses) | |||||
Without single maturity date | 1,564 | 1,564 | |||
Fair Value | |||||
Without single maturity date | 1,595 | 1,595 | |||
Fixed maturities available for sale, at fair value | 1,595 | 1,595 | 1,203 | ||
Redeemable preferred stock | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Amortized Cost | 71 | 71 | 598 | ||
Allowance for Credit Losses | 0 | 0 | 0 | ||
Gross Unrealized Gains | 13 | 13 | 46 | ||
Gross Unrealized Losses | 0 | 0 | 3 | ||
Fixed maturities available for sale, at fair value | 84 | 84 | 641 | ||
Amortized Cost (Less Allowance for Credit Losses) | |||||
Without single maturity date | 71 | 71 | |||
Fair Value | |||||
Without single maturity date | 84 | 84 | |||
Fixed maturities available for sale, at fair value | $ 84 | $ 84 | $ 641 |
INVESTMENTS - Net Unrealized In
INVESTMENTS - Net Unrealized Investment (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | $ 6,907 | $ 18,798 | $ 11,643 | $ 11,565 |
Ending balance | 8,589 | 15,088 | 8,589 | 15,088 |
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent | Unrealized Investment Gains Losses All Other | Net Unrealized Gains (Losses) on Investments | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | 3,124 | 5,040 | 8,230 | 3,084 |
Net investment gains (losses) arising during the period | 2,196 | 3,336 | (2,695) | 5,362 |
Included in Net income (loss) | (398) | (167) | (574) | (230) |
Excluded from net income (loss) | 0 | 0 | 0 | 0 |
Other | 0 | (31) | ||
Impact of net unrealized investment gains (losses) | 0 | 0 | 0 | 0 |
Net unrealized investment gains (losses) excluding OTTI losses | 4,922 | 8,209 | 4,930 | 8,216 |
Net unrealized investment gains (losses) with OTTI losses | 9 | (2) | 1 | (9) |
Ending balance | 4,931 | 8,207 | 4,931 | 8,207 |
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent | Unrealized Investment Gains Losses All Other | DAC | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | (301) | (205) | (466) | (826) |
Impact of net unrealized investment gains (losses) | (87) | (289) | 77 | 331 |
Net unrealized investment gains (losses) excluding OTTI losses | (388) | (494) | (389) | (495) |
Ending balance | (389) | (494) | (389) | (494) |
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent | Unrealized Investment Gains Losses All Other | Policyholders’ Liabilities | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | (811) | (1,003) | (1,814) | (192) |
Impact of net unrealized investment gains (losses) | (224) | (799) | 777 | (1,611) |
Net unrealized investment gains (losses) excluding OTTI losses | (1,035) | (1,802) | (1,037) | (1,803) |
Ending balance | (1,037) | (1,801) | (1,037) | (1,801) |
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent | Unrealized Investment Gains Losses All Other | Deferred Income Tax Asset (Liability) | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | (423) | (805) | (1,250) | (433) |
Impact of net unrealized investment gains (losses) | (312) | (437) | 514 | (810) |
Net unrealized investment gains (losses) excluding OTTI losses | (735) | (1,242) | (736) | (1,243) |
Ending balance | (736) | (1,242) | (736) | (1,242) |
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent | Unrealized Investment Gains Losses All Other | AOCI Gain (Loss) Related to Net Unrealized Investment Gains (Losses) | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | 1,589 | 3,027 | 4,700 | 1,633 |
Net investment gains (losses) arising during the period | 2,196 | 3,336 | (2,695) | 5,362 |
Included in Net income (loss) | (398) | (167) | (574) | (230) |
Excluded from net income (loss) | 0 | 0 | 0 | 0 |
Other | 0 | (31) | ||
Impact of net unrealized investment gains (losses) | (623) | (1,525) | 1,368 | (2,090) |
Net unrealized investment gains (losses) excluding OTTI losses | 2,764 | 4,671 | 2,768 | 4,675 |
Net unrealized investment gains (losses) with OTTI losses | 5 | (1) | 1 | (5) |
Ending balance | 2,769 | 4,670 | 2,769 | 4,670 |
Fixed Maturities | AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent | Unrealized Investment Gains Losses All Other | DAC | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Net unrealized investment gains (losses) with OTTI losses | (1) | 0 | 0 | 1 |
Fixed Maturities | AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent | Unrealized Investment Gains Losses All Other | Policyholders’ Liabilities | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Net unrealized investment gains (losses) with OTTI losses | (2) | 1 | 0 | 2 |
Fixed Maturities | AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent | Unrealized Investment Gains Losses All Other | Deferred Income Tax Asset (Liability) | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Net unrealized investment gains (losses) with OTTI losses | $ (1) | $ 0 | $ 0 | $ 1 |
INVESTMENTS - Fixed Maturities
INVESTMENTS - Fixed Maturities Available-for-sale (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less Than 12 Months, Fair Value | $ 7,029 | $ 4,669 |
Less Than 12 Months, Gross Unrealized Losses | 115 | 64 |
12 Months or Longer, Fair Value | 338 | 439 |
12 Months or Longer, Gross Unrealized Losses | 18 | 39 |
Total Fair Value | 7,367 | 5,108 |
Total Gross Unrealized Losses | 133 | 103 |
Corporate | ||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less Than 12 Months, Fair Value | 4,777 | 2,773 |
Less Than 12 Months, Gross Unrealized Losses | 96 | 52 |
12 Months or Longer, Fair Value | 297 | 332 |
12 Months or Longer, Gross Unrealized Losses | 14 | 32 |
Total Fair Value | 5,074 | 3,105 |
Total Gross Unrealized Losses | 110 | 84 |
U.S. Treasury, government and agency | ||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less Than 12 Months, Fair Value | 642 | 881 |
Less Than 12 Months, Gross Unrealized Losses | 5 | 5 |
12 Months or Longer, Fair Value | 0 | 0 |
12 Months or Longer, Gross Unrealized Losses | 0 | 0 |
Total Fair Value | 642 | 881 |
Total Gross Unrealized Losses | 5 | 5 |
States and political subdivisions | ||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less Than 12 Months, Fair Value | 84 | |
Less Than 12 Months, Gross Unrealized Losses | 2 | |
12 Months or Longer, Fair Value | 0 | |
12 Months or Longer, Gross Unrealized Losses | 0 | |
Total Fair Value | 84 | |
Total Gross Unrealized Losses | 2 | |
Foreign governments | ||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less Than 12 Months, Fair Value | 222 | 153 |
Less Than 12 Months, Gross Unrealized Losses | 5 | 2 |
12 Months or Longer, Fair Value | 21 | 20 |
12 Months or Longer, Gross Unrealized Losses | 4 | 4 |
Total Fair Value | 243 | 173 |
Total Gross Unrealized Losses | 9 | 6 |
Asset-backed | ||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less Than 12 Months, Fair Value | 902 | 809 |
Less Than 12 Months, Gross Unrealized Losses | 2 | 4 |
12 Months or Longer, Fair Value | 20 | 76 |
12 Months or Longer, Gross Unrealized Losses | 0 | 1 |
Total Fair Value | 922 | 885 |
Total Gross Unrealized Losses | 2 | 5 |
Commercial mortgage-backed | ||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less Than 12 Months, Fair Value | 402 | |
Less Than 12 Months, Gross Unrealized Losses | 5 | |
12 Months or Longer, Fair Value | 0 | |
12 Months or Longer, Gross Unrealized Losses | 0 | |
Total Fair Value | 402 | |
Total Gross Unrealized Losses | $ 5 | |
Redeemable preferred stock | ||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less Than 12 Months, Fair Value | 53 | |
Less Than 12 Months, Gross Unrealized Losses | 1 | |
12 Months or Longer, Fair Value | 11 | |
12 Months or Longer, Gross Unrealized Losses | 2 | |
Total Fair Value | 64 | |
Total Gross Unrealized Losses | $ 3 |
INVESTMENTS - Mortgage Loans (D
INVESTMENTS - Mortgage Loans (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance, beginning of period | $ 81 | |||
Balance, end of period | $ 63 | $ 66 | 63 | $ 66 |
Commercial Mortgage Loans | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance, beginning of period | 70 | 43 | 77 | 33 |
Current-period provision for expected credit losses | (11) | 19 | (18) | 29 |
Write-offs charged against the allowance | 0 | 0 | 0 | 0 |
Recoveries of amounts previously written off | 0 | 0 | 0 | 0 |
Net change in allowance | (11) | 19 | (18) | 29 |
Balance, end of period | 59 | 62 | 59 | 62 |
Agricultural Mortgage Loans | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance, beginning of period | 4 | 3 | 4 | 3 |
Current-period provision for expected credit losses | 0 | 1 | 0 | 1 |
Write-offs charged against the allowance | 0 | 0 | 0 | 0 |
Recoveries of amounts previously written off | 0 | 0 | 0 | 0 |
Net change in allowance | 0 | 1 | 0 | 1 |
Balance, end of period | $ 4 | $ 4 | $ 4 | $ 4 |
INVESTMENTS - Credit Quality (D
INVESTMENTS - Credit Quality (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Commercial Mortgage Loans | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | $ 616 | $ 1,615 |
Fiscal year before current fiscal year | 1,562 | 814 |
Two years before current fiscal year | 834 | 1,267 |
Three years before current fiscal year | 1,266 | 1,204 |
Four years before current fiscal year | 1,206 | 2,563 |
Prior | 5,263 | 3,028 |
Total | 10,747 | 10,491 |
Non-accruing Loans | 0 | 0 |
Non-accruing Loans with No Allowance | 0 | 0 |
Interest Income on Non-accruing Loans | 0 | 0 |
Commercial Mortgage Loans | Past Due | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 0 | 162 |
Commercial Mortgage Loans | 30-59 Days | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 0 | 162 |
Commercial Mortgage Loans | 60-89 Days | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 0 | 0 |
Commercial Mortgage Loans | 90 Days Or Greater | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 0 | 0 |
Commercial Mortgage Loans | Current | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 10,747 | 10,329 |
Commercial Mortgage Loans | Greater than 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 345 | 1,230 |
Fiscal year before current fiscal year | 1,170 | 492 |
Two years before current fiscal year | 410 | 772 |
Three years before current fiscal year | 772 | 268 |
Four years before current fiscal year | 343 | 1,942 |
Prior | 3,070 | 1,230 |
Total | 6,110 | 5,934 |
Commercial Mortgage Loans | 1.8x to 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 131 | 227 |
Fiscal year before current fiscal year | 227 | 83 |
Two years before current fiscal year | 174 | 118 |
Three years before current fiscal year | 117 | 378 |
Four years before current fiscal year | 423 | 184 |
Prior | 389 | 329 |
Total | 1,461 | 1,319 |
Commercial Mortgage Loans | 1.5x to 1.8x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 0 | 98 |
Fiscal year before current fiscal year | 105 | 138 |
Two years before current fiscal year | 75 | 187 |
Three years before current fiscal year | 187 | 479 |
Four years before current fiscal year | 177 | 437 |
Prior | 660 | 616 |
Total | 1,204 | 1,955 |
Commercial Mortgage Loans | 1.2x to 1.5x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 0 | 60 |
Fiscal year before current fiscal year | 60 | 57 |
Two years before current fiscal year | 75 | 154 |
Three years before current fiscal year | 102 | 79 |
Four years before current fiscal year | 148 | 0 |
Prior | 571 | 658 |
Total | 956 | 1,008 |
Commercial Mortgage Loans | 1.0x to 1.2x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 140 | 0 |
Fiscal year before current fiscal year | 0 | 44 |
Two years before current fiscal year | 44 | 0 |
Three years before current fiscal year | 40 | 0 |
Four years before current fiscal year | 0 | 0 |
Prior | 156 | 123 |
Total | 380 | 167 |
Commercial Mortgage Loans | Less than 1.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 0 | 0 |
Fiscal year before current fiscal year | 0 | 0 |
Two years before current fiscal year | 56 | 36 |
Three years before current fiscal year | 48 | 0 |
Four years before current fiscal year | 115 | 0 |
Prior | 417 | 72 |
Total | 636 | 108 |
Commercial Mortgage Loans | 0% - 50% | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 0 | 0 |
Fiscal year before current fiscal year | 0 | 0 |
Two years before current fiscal year | 0 | 0 |
Three years before current fiscal year | 184 | 324 |
Four years before current fiscal year | 324 | 170 |
Prior | 768 | 505 |
Total | 1,276 | 999 |
Commercial Mortgage Loans | 0% - 50% | Greater than 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 959 | 839 |
Commercial Mortgage Loans | 0% - 50% | 1.8x to 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 0 | 0 |
Commercial Mortgage Loans | 0% - 50% | 1.5x to 1.8x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 277 | 160 |
Commercial Mortgage Loans | 0% - 50% | 1.2x to 1.5x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 0 | 0 |
Commercial Mortgage Loans | 0% - 50% | 1.0x to 1.2x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 40 | 0 |
Commercial Mortgage Loans | 0% - 50% | Less than 1.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 0 | 0 |
Commercial Mortgage Loans | 50% - 70% | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 616 | 1,294 |
Fiscal year before current fiscal year | 1,242 | 357 |
Two years before current fiscal year | 377 | 803 |
Three years before current fiscal year | 619 | 656 |
Four years before current fiscal year | 701 | 2,190 |
Prior | 3,536 | 1,697 |
Total | 7,091 | 6,997 |
Commercial Mortgage Loans | 50% - 70% | Greater than 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 4,356 | 4,095 |
Commercial Mortgage Loans | 50% - 70% | 1.8x to 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 1,026 | 870 |
Commercial Mortgage Loans | 50% - 70% | 1.5x to 1.8x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 726 | 1,452 |
Commercial Mortgage Loans | 50% - 70% | 1.2x to 1.5x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 585 | 555 |
Commercial Mortgage Loans | 50% - 70% | 1.0x to 1.2x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 197 | 25 |
Commercial Mortgage Loans | 50% - 70% | Less than 1.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 201 | 0 |
Commercial Mortgage Loans | 70% - 90% | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 0 | 321 |
Fiscal year before current fiscal year | 320 | 457 |
Two years before current fiscal year | 457 | 452 |
Three years before current fiscal year | 451 | 219 |
Four years before current fiscal year | 176 | 203 |
Prior | 752 | 538 |
Total | 2,156 | 2,190 |
Commercial Mortgage Loans | 70% - 90% | Greater than 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 795 | 844 |
Commercial Mortgage Loans | 70% - 90% | 1.8x to 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 435 | 449 |
Commercial Mortgage Loans | 70% - 90% | 1.5x to 1.8x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 201 | 343 |
Commercial Mortgage Loans | 70% - 90% | 1.2x to 1.5x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 311 | 376 |
Commercial Mortgage Loans | 70% - 90% | 1.0x to 1.2x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 143 | 142 |
Commercial Mortgage Loans | 70% - 90% | Less than 1.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 271 | 36 |
Commercial Mortgage Loans | 90% plus | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 0 | 0 |
Fiscal year before current fiscal year | 0 | 0 |
Two years before current fiscal year | 0 | 12 |
Three years before current fiscal year | 12 | 5 |
Four years before current fiscal year | 5 | 0 |
Prior | 207 | 288 |
Total | 224 | 305 |
Commercial Mortgage Loans | 90% plus | Greater than 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 0 | 156 |
Commercial Mortgage Loans | 90% plus | 1.8x to 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 0 | 0 |
Commercial Mortgage Loans | 90% plus | 1.5x to 1.8x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 0 | 0 |
Commercial Mortgage Loans | 90% plus | 1.2x to 1.5x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 60 | 77 |
Commercial Mortgage Loans | 90% plus | 1.0x to 1.2x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 0 | 0 |
Commercial Mortgage Loans | 90% plus | Less than 1.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 164 | 72 |
Agricultural Mortgage Loans | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 243 | 495 |
Fiscal year before current fiscal year | 490 | 264 |
Two years before current fiscal year | 239 | 333 |
Three years before current fiscal year | 282 | 259 |
Four years before current fiscal year | 222 | 360 |
Prior | 1,207 | 1,021 |
Total | 2,683 | 2,732 |
Non-accruing Loans | 0 | 0 |
Non-accruing Loans with No Allowance | 0 | 0 |
Interest Income on Non-accruing Loans | 0 | 0 |
Agricultural Mortgage Loans | Past Due | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 80 | 112 |
Agricultural Mortgage Loans | 30-59 Days | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 6 | 76 |
Agricultural Mortgage Loans | 60-89 Days | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 0 | 7 |
Agricultural Mortgage Loans | 90 Days Or Greater | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 74 | 29 |
Agricultural Mortgage Loans | Current | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 2,603 | 2,620 |
Agricultural Mortgage Loans | Greater than 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 31 | 67 |
Fiscal year before current fiscal year | 67 | 26 |
Two years before current fiscal year | 25 | 36 |
Three years before current fiscal year | 22 | 38 |
Four years before current fiscal year | 33 | 71 |
Prior | 232 | 167 |
Total | 410 | 405 |
Agricultural Mortgage Loans | 1.8x to 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 35 | 38 |
Fiscal year before current fiscal year | 38 | 35 |
Two years before current fiscal year | 26 | 14 |
Three years before current fiscal year | 23 | 15 |
Four years before current fiscal year | 14 | 20 |
Prior | 78 | 82 |
Total | 214 | 204 |
Agricultural Mortgage Loans | 1.5x to 1.8x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 42 | 117 |
Fiscal year before current fiscal year | 114 | 38 |
Two years before current fiscal year | 30 | 41 |
Three years before current fiscal year | 29 | 45 |
Four years before current fiscal year | 40 | 52 |
Prior | 206 | 209 |
Total | 461 | 502 |
Agricultural Mortgage Loans | 1.2x to 1.5x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 95 | 183 |
Fiscal year before current fiscal year | 182 | 120 |
Two years before current fiscal year | 117 | 141 |
Three years before current fiscal year | 124 | 90 |
Four years before current fiscal year | 78 | 142 |
Prior | 397 | 313 |
Total | 993 | 989 |
Agricultural Mortgage Loans | 1.0x to 1.2x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 40 | 86 |
Fiscal year before current fiscal year | 85 | 35 |
Two years before current fiscal year | 32 | 93 |
Three years before current fiscal year | 79 | 70 |
Four years before current fiscal year | 56 | 57 |
Prior | 256 | 233 |
Total | 548 | 574 |
Agricultural Mortgage Loans | Less than 1.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 0 | 4 |
Fiscal year before current fiscal year | 4 | 10 |
Two years before current fiscal year | 9 | 8 |
Three years before current fiscal year | 5 | 1 |
Four years before current fiscal year | 1 | 18 |
Prior | 38 | 17 |
Total | 57 | 58 |
Agricultural Mortgage Loans | 0% - 50% | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 92 | 218 |
Fiscal year before current fiscal year | 219 | 135 |
Two years before current fiscal year | 130 | 169 |
Three years before current fiscal year | 137 | 157 |
Four years before current fiscal year | 131 | 236 |
Prior | 814 | 652 |
Total | 1,523 | 1,567 |
Agricultural Mortgage Loans | 0% - 50% | Greater than 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 300 | 297 |
Agricultural Mortgage Loans | 0% - 50% | 1.8x to 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 98 | 108 |
Agricultural Mortgage Loans | 0% - 50% | 1.5x to 1.8x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 289 | 291 |
Agricultural Mortgage Loans | 0% - 50% | 1.2x to 1.5x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 505 | 520 |
Agricultural Mortgage Loans | 0% - 50% | 1.0x to 1.2x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 303 | 317 |
Agricultural Mortgage Loans | 0% - 50% | Less than 1.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 28 | 34 |
Agricultural Mortgage Loans | 50% - 70% | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 151 | 277 |
Fiscal year before current fiscal year | 271 | 129 |
Two years before current fiscal year | 109 | 161 |
Three years before current fiscal year | 145 | 102 |
Four years before current fiscal year | 91 | 124 |
Prior | 376 | 351 |
Total | 1,143 | 1,144 |
Agricultural Mortgage Loans | 50% - 70% | Greater than 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 110 | 108 |
Agricultural Mortgage Loans | 50% - 70% | 1.8x to 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 114 | 94 |
Agricultural Mortgage Loans | 50% - 70% | 1.5x to 1.8x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 172 | 211 |
Agricultural Mortgage Loans | 50% - 70% | 1.2x to 1.5x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 488 | 450 |
Agricultural Mortgage Loans | 50% - 70% | 1.0x to 1.2x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 245 | 257 |
Agricultural Mortgage Loans | 50% - 70% | Less than 1.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 14 | 24 |
Agricultural Mortgage Loans | 70% - 90% | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 0 | 0 |
Fiscal year before current fiscal year | 0 | 0 |
Two years before current fiscal year | 0 | 3 |
Three years before current fiscal year | 0 | 0 |
Four years before current fiscal year | 0 | 0 |
Prior | 17 | 18 |
Total | 17 | 21 |
Agricultural Mortgage Loans | 70% - 90% | Greater than 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 0 | 0 |
Agricultural Mortgage Loans | 70% - 90% | 1.8x to 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 2 | 2 |
Agricultural Mortgage Loans | 70% - 90% | 1.5x to 1.8x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 0 | 0 |
Agricultural Mortgage Loans | 70% - 90% | 1.2x to 1.5x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 0 | 19 |
Agricultural Mortgage Loans | 70% - 90% | 1.0x to 1.2x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 0 | 0 |
Agricultural Mortgage Loans | 70% - 90% | Less than 1.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 15 | 0 |
Agricultural Mortgage Loans | 90% plus | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 0 | 0 |
Fiscal year before current fiscal year | 0 | 0 |
Two years before current fiscal year | 0 | 0 |
Three years before current fiscal year | 0 | 0 |
Four years before current fiscal year | 0 | 0 |
Prior | 0 | 0 |
Total | 0 | 0 |
Agricultural Mortgage Loans | 90% plus | Greater than 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 0 | 0 |
Agricultural Mortgage Loans | 90% plus | 1.8x to 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 0 | 0 |
Agricultural Mortgage Loans | 90% plus | 1.5x to 1.8x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 0 | 0 |
Agricultural Mortgage Loans | 90% plus | 1.2x to 1.5x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 0 | 0 |
Agricultural Mortgage Loans | 90% plus | 1.0x to 1.2x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 0 | 0 |
Agricultural Mortgage Loans | 90% plus | Less than 1.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 0 | 0 |
Mortgages Loan | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 859 | 2,110 |
Fiscal year before current fiscal year | 2,052 | 1,078 |
Two years before current fiscal year | 1,073 | 1,600 |
Three years before current fiscal year | 1,548 | 1,463 |
Four years before current fiscal year | 1,428 | 2,923 |
Prior | 6,470 | 4,049 |
Total | 13,430 | 13,223 |
Non-accruing Loans | 0 | 0 |
Non-accruing Loans with No Allowance | 0 | 0 |
Interest Income on Non-accruing Loans | 0 | 0 |
Mortgages Loan | Past Due | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 80 | 274 |
Mortgages Loan | 30-59 Days | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 6 | 238 |
Mortgages Loan | 60-89 Days | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 0 | 7 |
Mortgages Loan | 90 Days Or Greater | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 74 | 29 |
Mortgages Loan | Current | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 13,350 | 12,949 |
Mortgages Loan | Greater than 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 376 | 1,297 |
Fiscal year before current fiscal year | 1,237 | 518 |
Two years before current fiscal year | 435 | 808 |
Three years before current fiscal year | 794 | 306 |
Four years before current fiscal year | 376 | 2,013 |
Prior | 3,302 | 1,397 |
Total | 6,520 | 6,339 |
Mortgages Loan | 1.8x to 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 166 | 265 |
Fiscal year before current fiscal year | 265 | 118 |
Two years before current fiscal year | 200 | 132 |
Three years before current fiscal year | 140 | 393 |
Four years before current fiscal year | 437 | 204 |
Prior | 467 | 411 |
Total | 1,675 | 1,523 |
Mortgages Loan | 1.5x to 1.8x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 42 | 215 |
Fiscal year before current fiscal year | 219 | 176 |
Two years before current fiscal year | 105 | 228 |
Three years before current fiscal year | 216 | 524 |
Four years before current fiscal year | 217 | 489 |
Prior | 866 | 825 |
Total | 1,665 | 2,457 |
Mortgages Loan | 1.2x to 1.5x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 95 | 243 |
Fiscal year before current fiscal year | 242 | 177 |
Two years before current fiscal year | 192 | 295 |
Three years before current fiscal year | 226 | 169 |
Four years before current fiscal year | 226 | 142 |
Prior | 968 | 971 |
Total | 1,949 | 1,997 |
Mortgages Loan | 1.0x to 1.2x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 180 | 86 |
Fiscal year before current fiscal year | 85 | 79 |
Two years before current fiscal year | 76 | 93 |
Three years before current fiscal year | 119 | 70 |
Four years before current fiscal year | 56 | 57 |
Prior | 412 | 356 |
Total | 928 | 741 |
Mortgages Loan | Less than 1.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 0 | 4 |
Fiscal year before current fiscal year | 4 | 10 |
Two years before current fiscal year | 65 | 44 |
Three years before current fiscal year | 53 | 1 |
Four years before current fiscal year | 116 | 18 |
Prior | 455 | 89 |
Total | 693 | 166 |
Mortgages Loan | 0% - 50% | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 92 | 218 |
Fiscal year before current fiscal year | 219 | 135 |
Two years before current fiscal year | 130 | 169 |
Three years before current fiscal year | 321 | 481 |
Four years before current fiscal year | 455 | 406 |
Prior | 1,582 | 1,157 |
Total | 2,799 | 2,566 |
Mortgages Loan | 0% - 50% | Greater than 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 1,259 | 1,136 |
Mortgages Loan | 0% - 50% | 1.8x to 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 98 | 108 |
Mortgages Loan | 0% - 50% | 1.5x to 1.8x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 566 | 451 |
Mortgages Loan | 0% - 50% | 1.2x to 1.5x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 505 | 520 |
Mortgages Loan | 0% - 50% | 1.0x to 1.2x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 343 | 317 |
Mortgages Loan | 0% - 50% | Less than 1.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 28 | 34 |
Mortgages Loan | 50% - 70% | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 767 | 1,571 |
Fiscal year before current fiscal year | 1,513 | 486 |
Two years before current fiscal year | 486 | 964 |
Three years before current fiscal year | 764 | 758 |
Four years before current fiscal year | 792 | 2,314 |
Prior | 3,912 | 2,048 |
Total | 8,234 | 8,141 |
Mortgages Loan | 50% - 70% | Greater than 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 4,466 | 4,203 |
Mortgages Loan | 50% - 70% | 1.8x to 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 1,140 | 964 |
Mortgages Loan | 50% - 70% | 1.5x to 1.8x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 898 | 1,663 |
Mortgages Loan | 50% - 70% | 1.2x to 1.5x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 1,073 | 1,005 |
Mortgages Loan | 50% - 70% | 1.0x to 1.2x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 442 | 282 |
Mortgages Loan | 50% - 70% | Less than 1.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 215 | 24 |
Mortgages Loan | 70% - 90% | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 0 | 321 |
Fiscal year before current fiscal year | 320 | 457 |
Two years before current fiscal year | 457 | 455 |
Three years before current fiscal year | 451 | 219 |
Four years before current fiscal year | 176 | 203 |
Prior | 769 | 556 |
Total | 2,173 | 2,211 |
Mortgages Loan | 70% - 90% | Greater than 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 795 | 844 |
Mortgages Loan | 70% - 90% | 1.8x to 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 437 | 451 |
Mortgages Loan | 70% - 90% | 1.5x to 1.8x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 201 | 343 |
Mortgages Loan | 70% - 90% | 1.2x to 1.5x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 311 | 395 |
Mortgages Loan | 70% - 90% | 1.0x to 1.2x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 143 | 142 |
Mortgages Loan | 70% - 90% | Less than 1.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 286 | 36 |
Mortgages Loan | 90% plus | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 0 | 0 |
Fiscal year before current fiscal year | 0 | 0 |
Two years before current fiscal year | 0 | 12 |
Three years before current fiscal year | 12 | 5 |
Four years before current fiscal year | 5 | 0 |
Prior | 207 | 288 |
Total | 224 | 305 |
Mortgages Loan | 90% plus | Greater than 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 0 | 156 |
Mortgages Loan | 90% plus | 1.8x to 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 0 | 0 |
Mortgages Loan | 90% plus | 1.5x to 1.8x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 0 | 0 |
Mortgages Loan | 90% plus | 1.2x to 1.5x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 60 | 77 |
Mortgages Loan | 90% plus | 1.0x to 1.2x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 0 | 0 |
Mortgages Loan | 90% plus | Less than 1.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | $ 164 | $ 72 |
INVESTMENTS - Equity Securities
INVESTMENTS - Equity Securities (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2021 | Jun. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | ||
Net investment gains (losses) recognized during the period on securities held at the end of the period | $ 3 | $ 20 |
Net investment gains (losses) recognized on securities sold during the period | 10 | 4 |
Unrealized and realized gains (losses) on equity securities | $ 13 | $ 24 |
INVESTMENTS - Trading Securitie
INVESTMENTS - Trading Securities (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Net investment gains (losses) recognized during the period on securities held at the end of the period | $ (168) | $ 250 | $ (217) | $ 87 |
Net investment gains (losses) recognized on securities sold during the period | 153 | 14 | 175 | 17 |
Unrealized and realized gains (losses) on trading securities | (15) | 264 | (42) | 104 |
Interest and dividend income from trading securities | 40 | 45 | 76 | 94 |
Net investment income (loss) from trading securities | $ 25 | $ 309 | $ 34 | $ 198 |
DERIVATIVES - Narrative (Detail
DERIVATIVES - Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Derivative [Line Items] | ||
Loss on derivatives arising during period | $ 18 | |
Loss released | 17 | |
Deferred loss | 2 | |
Cash and securities collateral for derivative contract | 5,900 | $ 3,800 |
Cash and securities collateral | 100 | 212 |
S&P 500, Russell 1000, NASDAQ 100 and Emerging Market Indices | ||
Derivative [Line Items] | ||
Initial margin requirements | 138 | 135 |
Us Treasury Notes Ultra Long Bonds And Euro Dollar | ||
Derivative [Line Items] | ||
Initial margin requirements | 53 | 263 |
Euro Stoxx, FTSE100, Topix, ASX200 and EAFE Indices | ||
Derivative [Line Items] | ||
Initial margin requirements | $ 16 | $ 35 |
DERIVATIVES - Derivatives by Ca
DERIVATIVES - Derivatives by Category (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Derivatives, Fair Value [Line Items] | |||
Notional Amount | $ 88,372 | $ 105,657 | |
Derivative Assets | 19,084 | 12,045 | |
Derivative Liabilities | 25,482 | 23,584 | |
Net Derivative Gains (Losses) | (3,909) | $ 3,630 | |
Futures | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 2,927 | 4,267 | |
Derivative Assets | 0 | 0 | |
Derivative Liabilities | 0 | 0 | |
Net Derivative Gains (Losses) | (459) | (126) | |
Swaps | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 13,308 | 22,404 | |
Derivative Assets | 4 | 6 | |
Derivative Liabilities | 0 | 0 | |
Net Derivative Gains (Losses) | (2,606) | 963 | |
Options | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 54,224 | 35,786 | |
Derivative Assets | 11,007 | 8,383 | |
Derivative Liabilities | 4,604 | 3,715 | |
Net Derivative Gains (Losses) | 2,344 | (1,387) | |
Swaps | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 6,292 | 23,773 | |
Derivative Assets | 75 | 551 | |
Derivative Liabilities | 575 | 653 | |
Net Derivative Gains (Losses) | (2,470) | 3,658 | |
Futures | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 9,550 | 18,161 | |
Derivative Assets | 0 | 0 | |
Derivative Liabilities | 0 | 0 | |
Net Derivative Gains (Losses) | (796) | 2,072 | |
Swaptions | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 0 | 0 | |
Derivative Assets | 0 | 0 | |
Derivative Liabilities | 0 | 0 | |
Net Derivative Gains (Losses) | 0 | 9 | |
Credit default swaps | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 766 | 919 | |
Derivative Assets | 5 | 8 | |
Derivative Liabilities | 2 | 1 | |
Net Derivative Gains (Losses) | 2 | (7) | |
Foreign Currency Contracts | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 1,305 | 347 | |
Derivative Assets | 2 | 0 | |
Derivative Liabilities | 19 | 0 | |
Net Derivative Gains (Losses) | 0 | (3) | |
Margin | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 0 | 0 | |
Derivative Assets | 46 | 26 | |
Derivative Liabilities | 0 | 66 | |
Net Derivative Gains (Losses) | 0 | 0 | |
Collateral | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 0 | 0 | |
Derivative Assets | 145 | 212 | |
Derivative Liabilities | 5,872 | 3,835 | |
Net Derivative Gains (Losses) | 0 | 0 | |
Amounts due from reinsurers | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 0 | ||
Derivative Assets | 5,510 | ||
Derivative Liabilities | 0 | ||
Net Derivative Gains (Losses) | 242 | ||
GMIB Reinsurance Contracts | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 0 | 0 | |
Derivative Assets | 2,290 | 2,859 | |
Derivative Liabilities | 0 | 0 | |
Net Derivative Gains (Losses) | (566) | 1,026 | |
GMxB Derivative Features’ Liability | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 0 | 0 | |
Derivative Assets | 0 | 0 | |
Derivative Liabilities | 8,455 | 10,936 | |
Net Derivative Gains (Losses) | 2,686 | (3,952) | |
SCS, SIO, MSO and IUL Indexed Features | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 0 | 0 | |
Derivative Assets | 0 | 0 | |
Derivative Liabilities | 5,955 | $ 4,378 | |
Net Derivative Gains (Losses) | (2,286) | 1,377 | |
Investment fees | $ 7 | $ 6 |
DERIVATIVES - Offsetting of Fin
DERIVATIVES - Offsetting of Financial Assets and Liabilities and Derivative Instruments (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Derivatives | ||
Assets | ||
Gross Amount Recognized | $ 11,283 | $ 9,186 |
Gross Amount Offset in the Balance Sheets | 10,199 | 8,206 |
Net Amount Presented in the Balance Sheets | 1,084 | 980 |
Gross Amount not Offset in the Balance Sheets | (823) | (53) |
Net Amount | 261 | 927 |
Liabilities | ||
Gross Amount Recognized | 10,250 | 8,218 |
Gross Amount Offset in the Balance Sheets | 10,199 | 8,206 |
Net Amount Presented in the Balance Sheets | 51 | 12 |
Gross Amount not Offset in the Balance Sheets | 0 | 0 |
Net Amount | 51 | 12 |
Other financial instruments | ||
Assets | ||
Gross Amount Recognized | 1,423 | 1,403 |
Gross Amount Offset in the Balance Sheets | 0 | 0 |
Net Amount Presented in the Balance Sheets | 1,423 | 1,403 |
Gross Amount not Offset in the Balance Sheets | 0 | 0 |
Net Amount | 1,423 | 1,403 |
Other invested assets | ||
Assets | ||
Gross Amount Recognized | 12,706 | 10,589 |
Gross Amount Offset in the Balance Sheets | 10,199 | 8,206 |
Net Amount Presented in the Balance Sheets | 2,507 | 2,383 |
Gross Amount not Offset in the Balance Sheets | (823) | (53) |
Net Amount | 1,684 | 2,330 |
Other financial liabilities | ||
Liabilities | ||
Gross Amount Recognized | 2,073 | 1,568 |
Gross Amount Offset in the Balance Sheets | 0 | 0 |
Net Amount Presented in the Balance Sheets | 2,073 | 1,568 |
Gross Amount not Offset in the Balance Sheets | 0 | 0 |
Net Amount | 2,073 | 1,568 |
Other liabilities | ||
Liabilities | ||
Gross Amount Recognized | 12,323 | 9,786 |
Gross Amount Offset in the Balance Sheets | 10,199 | 8,206 |
Net Amount Presented in the Balance Sheets | 2,124 | 1,580 |
Gross Amount not Offset in the Balance Sheets | 0 | 0 |
Net Amount | $ 2,124 | $ 1,580 |
CLOSED BLOCK - Summarized Finan
CLOSED BLOCK - Summarized Financial Information for Closed Block (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Closed Block Liabilities: | ||||||
Future policy benefits, policyholders’ account balances and other | $ 6,059 | $ 6,201 | ||||
Policyholder dividend obligation | 72 | $ 28 | 160 | $ 2 | $ 2 | $ 2 |
Other liabilities | 76 | 39 | ||||
Total Closed Block liabilities | 6,207 | 6,400 | ||||
Assets Designated to the Closed Block: | ||||||
Fixed maturities AFS, at fair value (amortized cost of $3,350 and $3,359) (allowance for credit losses of $0) | 3,629 | 3,718 | ||||
Mortgage loans on real estate (net of allowance for credit losses of $5 and $6) | 1,767 | 1,773 | ||||
Policy loans | 630 | 648 | ||||
Cash and other invested assets | 8 | 28 | ||||
Other assets | 117 | 169 | ||||
Total assets designated to the Closed Block | 6,151 | 6,336 | ||||
Excess of Closed Block liabilities over assets designated to the Closed Block | 56 | 64 | ||||
Amounts included in accumulated other comprehensive income (loss): | ||||||
Net unrealized investment gains (losses), net of policyholders’ dividend obligation: $72 and $160; and net of income tax: $(44) and $(42) | 174 | 167 | ||||
Maximum future earnings to be recognized from Closed Block assets and liabilities | 230 | 231 | ||||
Fixed maturities, available for sale, amortized cost | 3,350 | 3,359 | ||||
Fixed maturities available-for-sale, allowance for credit losses | 0 | 0 | ||||
Mortgage loans, credit losses | 5 | 6 | ||||
Policyholder dividend obligation | 72 | $ 28 | 160 | $ 2 | $ 2 | $ 2 |
Closed block operations, income taxes | $ (44) | $ (42) |
CLOSED BLOCK - Revenues and Exp
CLOSED BLOCK - Revenues and Expenses (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Revenues: | ||||
Premiums and other income | $ 37 | $ 40 | $ 76 | $ 82 |
Net investment income (loss) | 60 | 63 | 120 | 129 |
Investment gains (losses), net | 2 | (2) | 2 | (2) |
Total revenues | 99 | 101 | 198 | 209 |
Benefits and Other Deductions: | ||||
Policyholders’ benefits and dividends | 90 | 103 | 196 | 206 |
Other operating costs and expenses | 0 | 1 | 1 | 1 |
Total benefits and other deductions | 90 | 104 | 197 | 207 |
Net income (loss), before income taxes | 9 | (3) | 1 | 2 |
Income tax (expense) benefit | 0 | (1) | (1) | (1) |
Net income (loss) | $ 9 | $ (4) | $ 0 | $ 1 |
CLOSED BLOCK - Reconciliation o
CLOSED BLOCK - Reconciliation of Policyholder Dividend Obligation (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Movement in Closed Block Dividend Obligation [Roll Forward] | ||||
Beginning balance | $ 28 | $ 2 | $ 160 | $ 2 |
Unrealized investment gains (losses) | 44 | 0 | (88) | 0 |
Ending balance | $ 72 | $ 2 | $ 72 | $ 2 |
INSURANCE LIABILITIES - Rollfor
INSURANCE LIABILITIES - Rollforward of Liability and Reinsurance Ceded (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
GMDB Direct | ||||
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross | ||||
Balance, beginning of period | $ 5,083 | $ 5,041 | $ 5,093 | $ 4,775 |
Paid guarantee benefits | (114) | (140) | (247) | (251) |
Other changes in reserves | 171 | 97 | 294 | 474 |
Impact of the Venerable transaction | 0 | 0 | ||
Balance, end of period | 5,140 | 4,998 | 5,140 | 4,998 |
GMDB Ceded | ||||
Guaranteed Minimum Death Benefit Reinsurance Ceded [Roll Forward] | ||||
Balance, beginning of period | (81) | (105) | (84) | (99) |
Paid guarantee benefits | 19 | 4 | 23 | 9 |
Other changes in reserves | (43) | 3 | (44) | (8) |
Impact of the Venerable transaction | (2,176) | (2,176) | ||
Balance, end of period | (2,281) | (98) | (2,281) | (98) |
GMIB Direct | ||||
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross | ||||
Balance, beginning of period | 5,966 | 6,272 | 6,025 | 4,671 |
Paid guarantee benefits | (93) | (103) | (184) | (177) |
Other changes in reserves | 72 | (48) | 104 | 1,627 |
Impact of the Venerable transaction | 0 | 0 | ||
Balance, end of period | 5,945 | 6,121 | 5,945 | 6,121 |
GMIB Ceded | ||||
Guaranteed Minimum Death Benefit Reinsurance Ceded [Roll Forward] | ||||
Balance, beginning of period | (2,133) | (3,305) | (2,859) | (2,466) |
Paid guarantee benefits | 13 | 17 | 26 | 37 |
Other changes in reserves | (183) | (145) | 530 | (1,004) |
Impact of the Venerable transaction | (2,141) | (2,141) | ||
Balance, end of period | $ (4,444) | $ (3,433) | $ (4,444) | $ (3,433) |
INSURANCE LIABILITIES - Variabl
INSURANCE LIABILITIES - Variable Annuity Contracts with GMDB and GMIB Features (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
GMDB Ceded | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
General Account | $ 16,173 | |
Separate Accounts | 106,714 | $ 100,520 |
Total Account Values | 122,887 | |
NAR, gross | 17,170 | |
NAR, net of amounts reinsured | $ 9,013 | |
Percentage of policyholders over age 70 | 20.50% | |
GMDB Ceded | Return of Premium | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
General Account | $ 15,874 | |
Separate Accounts | 58,239 | |
Total Account Values | 74,113 | |
NAR, gross | 91 | |
NAR, net of amounts reinsured | $ 88 | |
Percentage of policyholders over age 70 | 11.50% | |
GMDB Ceded | Ratchet | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
General Account | $ 85 | |
Separate Accounts | 9,937 | |
Total Account Values | 10,022 | |
NAR, gross | 28 | |
NAR, net of amounts reinsured | $ 24 | |
Percentage of policyholders over age 70 | 50.00% | |
GMDB Ceded | Roll-Up | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
General Account | $ 53 | |
Separate Accounts | 3,450 | |
Total Account Values | 3,503 | |
NAR, gross | 1,406 | |
NAR, net of amounts reinsured | $ 983 | |
Percentage of policyholders over age 70 | 71.40% | |
GMDB Ceded | Combo | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
General Account | $ 161 | |
Separate Accounts | 35,088 | |
Total Account Values | 35,249 | |
NAR, gross | 15,645 | |
NAR, net of amounts reinsured | $ 7,918 | |
Percentage of policyholders over age 70 | 55.90% | |
GMIB | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Separate Accounts | $ 63,724 | $ 61,186 |
Immediate Variable Annuity | GMDB Ceded | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Average attained age of policyholders (in years) | 55 years 3 months 18 days | |
Immediate Variable Annuity | GMDB Ceded | Minimum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates (as a percent) | 3.00% | |
Immediate Variable Annuity | GMDB Ceded | Maximum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates (as a percent) | 6.50% | |
Immediate Variable Annuity | GMDB Ceded | Return of Premium | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Average attained age of policyholders (in years) | 51 years 4 months 24 days | |
Immediate Variable Annuity | GMDB Ceded | Ratchet | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Average attained age of policyholders (in years) | 68 years 8 months 12 days | |
Immediate Variable Annuity | GMDB Ceded | Roll-Up | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Average attained age of policyholders (in years) | 75 years 2 months 12 days | |
Immediate Variable Annuity | GMDB Ceded | Roll-Up | Minimum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates (as a percent) | 3.00% | |
Immediate Variable Annuity | GMDB Ceded | Roll-Up | Maximum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates (as a percent) | 6.00% | |
Immediate Variable Annuity | GMDB Ceded | Combo | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Average attained age of policyholders (in years) | 70 years 7 months 6 days | |
Immediate Variable Annuity | GMDB Ceded | Combo | Minimum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates (as a percent) | 3.00% | |
Immediate Variable Annuity | GMDB Ceded | Combo | Maximum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates (as a percent) | 6.50% | |
Immediate Variable Annuity | GMIB | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
General Account | $ 227 | |
Separate Accounts | 63,724 | |
Total Account Values | 63,951 | |
NAR, gross | 9,462 | |
NAR, net of amounts reinsured | $ 3,820 | |
Average attained age of policyholders (in years) | 68 years 3 months 18 days | |
Weighted average years remaining until annuitization (in years) | 2 years 6 months | |
Immediate Variable Annuity | GMIB | Minimum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates (as a percent) | 3.00% | |
Immediate Variable Annuity | GMIB | Maximum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates (as a percent) | 6.50% | |
Immediate Variable Annuity | GMIB | Return of Premium | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
General Account | $ 0 | |
Separate Accounts | 0 | |
Total Account Values | 0 | |
NAR, gross | 0 | |
NAR, net of amounts reinsured | 0 | |
Immediate Variable Annuity | GMIB | Ratchet | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
General Account | 0 | |
Separate Accounts | 0 | |
Total Account Values | 0 | |
NAR, gross | 0 | |
NAR, net of amounts reinsured | 0 | |
Immediate Variable Annuity | GMIB | Roll-Up | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
General Account | 16 | |
Separate Accounts | 26,142 | |
Total Account Values | 26,158 | |
NAR, gross | 669 | |
NAR, net of amounts reinsured | $ 215 | |
Average attained age of policyholders (in years) | 64 years 4 months 24 days | |
Weighted average years remaining until annuitization (in years) | 5 years 8 months 12 days | |
Immediate Variable Annuity | GMIB | Roll-Up | Minimum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates (as a percent) | 3.00% | |
Immediate Variable Annuity | GMIB | Roll-Up | Maximum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates (as a percent) | 6.00% | |
Immediate Variable Annuity | GMIB | Combo | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
General Account | $ 211 | |
Separate Accounts | 37,582 | |
Total Account Values | 37,793 | |
NAR, gross | 8,793 | |
NAR, net of amounts reinsured | $ 3,605 | |
Average attained age of policyholders (in years) | 70 years 6 months | |
Weighted average years remaining until annuitization (in years) | 7 months 6 days | |
Immediate Variable Annuity | GMIB | Combo | Minimum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates (as a percent) | 3.00% | |
Immediate Variable Annuity | GMIB | Combo | Maximum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates (as a percent) | 6.50% |
INSURANCE LIABILITIES - Separat
INSURANCE LIABILITIES - Separate Account Investments, Hedging Programs and Variable and Interest-Sensitive Live Insurance Policies (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Direct Liability | |||||
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross | |||||
Balance, beginning of period | $ 1,045 | $ 920 | $ 1,016 | $ 894 | |
Paid guaranteed benefits | (13) | (13) | (28) | (26) | |
Other changes in reserves | 32 | 34 | 76 | 73 | |
Balance, end of period | 1,064 | 941 | 1,064 | 941 | |
Reinsurance Ceded | |||||
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross | |||||
Balance, beginning of period | (901) | (827) | (883) | (808) | |
Paid guaranteed benefits | 0 | 0 | 0 | 0 | |
Other changes in reserves | (8) | (14) | (26) | (33) | |
Balance, end of period | (909) | (841) | (909) | (841) | |
Net | |||||
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross | |||||
Balance, beginning of period | 144 | 93 | 133 | 86 | |
Paid guaranteed benefits | (13) | (13) | (28) | (26) | |
Other changes in reserves | 24 | 20 | 50 | 40 | |
Balance, end of period | 155 | $ 100 | 155 | $ 100 | |
GMDB | |||||
Fair Value, Separate Account Investment [Line Items] | |||||
Separate Accounts | 106,714 | 106,714 | $ 100,520 | ||
GMDB | Equity | |||||
Fair Value, Separate Account Investment [Line Items] | |||||
Separate Accounts | 51,366 | 51,366 | 46,850 | ||
GMDB | Fixed income | |||||
Fair Value, Separate Account Investment [Line Items] | |||||
Separate Accounts | 5,451 | 5,451 | 5,506 | ||
GMDB | Balanced | |||||
Fair Value, Separate Account Investment [Line Items] | |||||
Separate Accounts | 48,804 | 48,804 | 47,053 | ||
GMDB | Other | |||||
Fair Value, Separate Account Investment [Line Items] | |||||
Separate Accounts | 1,093 | 1,093 | 1,111 | ||
GMIB | |||||
Fair Value, Separate Account Investment [Line Items] | |||||
Separate Accounts | 63,724 | 63,724 | 61,186 | ||
GMIB | Equity | |||||
Fair Value, Separate Account Investment [Line Items] | |||||
Separate Accounts | 20,039 | 20,039 | 18,771 | ||
GMIB | Fixed income | |||||
Fair Value, Separate Account Investment [Line Items] | |||||
Separate Accounts | 2,607 | 2,607 | 2,701 | ||
GMIB | Balanced | |||||
Fair Value, Separate Account Investment [Line Items] | |||||
Separate Accounts | 40,811 | 40,811 | 39,439 | ||
GMIB | Other | |||||
Fair Value, Separate Account Investment [Line Items] | |||||
Separate Accounts | $ 267 | $ 267 | $ 275 |
FAIR VALUE DISCLOSURES - Schedu
FAIR VALUE DISCLOSURES - Schedules Of Assets And Liabilities Measured On Recurring Basis (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Assets: | ||
Fixed maturities available for sale, at fair value | $ 70,451 | $ 76,353 |
Recurring | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 70,451 | 76,353 |
Other equity investments | 552 | 15 |
Trading securities | 855 | 5,340 |
Other invested assets: | 5,909 | 4,674 |
Cash equivalents | 1,203 | 1,470 |
Amounts due from reinsurer | 5,510 | |
GMIB reinsurance contracts asset | 2,290 | 2,859 |
Separate Accounts assets | 141,998 | 132,775 |
Total Assets | 228,768 | 223,486 |
Liabilities: | ||
Total Liabilities | 14,410 | 15,314 |
Recurring | Level 1 | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 0 | 402 |
Other equity investments | 302 | 13 |
Trading securities | 223 | 285 |
Other invested assets: | 0 | 0 |
Cash equivalents | 895 | 1,183 |
Amounts due from reinsurer | 0 | |
GMIB reinsurance contracts asset | 0 | 0 |
Separate Accounts assets | 139,412 | 130,106 |
Total Assets | 140,832 | 131,989 |
Liabilities: | ||
Total Liabilities | 0 | 0 |
Recurring | Level 2 | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 69,027 | 74,205 |
Other equity investments | 247 | 0 |
Trading securities | 632 | 5,055 |
Other invested assets: | 5,898 | 4,661 |
Cash equivalents | 308 | 287 |
Amounts due from reinsurer | 0 | |
GMIB reinsurance contracts asset | 0 | 0 |
Separate Accounts assets | 2,585 | 2,668 |
Total Assets | 78,697 | 86,876 |
Liabilities: | ||
Total Liabilities | 5,955 | 4,378 |
Recurring | Level 3 | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 1,424 | 1,746 |
Other equity investments | 3 | 2 |
Trading securities | 0 | 0 |
Other invested assets: | 11 | 13 |
Cash equivalents | 0 | 0 |
Amounts due from reinsurer | 5,510 | |
GMIB reinsurance contracts asset | 2,290 | 2,859 |
Separate Accounts assets | 1 | 1 |
Total Assets | 9,239 | 4,621 |
Liabilities: | ||
Total Liabilities | 8,455 | 10,936 |
Recurring | NAV | ||
Assets: | ||
Separate Accounts assets | 379 | 356 |
Corporate | Recurring | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 45,935 | 53,102 |
Corporate | Recurring | Level 1 | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 0 | 0 |
Corporate | Recurring | Level 2 | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 44,686 | 51,415 |
Corporate | Recurring | Level 3 | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 1,249 | 1,687 |
U.S. Treasury, government and agency | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 16,298 | 15,943 |
U.S. Treasury, government and agency | Recurring | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 16,298 | 15,943 |
U.S. Treasury, government and agency | Recurring | Level 1 | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 0 | 0 |
U.S. Treasury, government and agency | Recurring | Level 2 | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 16,298 | 15,943 |
U.S. Treasury, government and agency | Recurring | Level 3 | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 0 | 0 |
States and political subdivisions | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 574 | 574 |
States and political subdivisions | Recurring | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 574 | 574 |
States and political subdivisions | Recurring | Level 1 | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 0 | 0 |
States and political subdivisions | Recurring | Level 2 | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 537 | 535 |
States and political subdivisions | Recurring | Level 3 | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 37 | 39 |
Foreign governments | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 952 | 1,103 |
Foreign governments | Recurring | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 952 | 1,103 |
Foreign governments | Recurring | Level 1 | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 0 | 0 |
Foreign governments | Recurring | Level 2 | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 952 | 1,103 |
Foreign governments | Recurring | Level 3 | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 0 | 0 |
Residential mortgage-backed | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 109 | 131 |
Residential mortgage-backed | Recurring | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 109 | 131 |
Residential mortgage-backed | Recurring | Level 1 | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 0 | 0 |
Residential mortgage-backed | Recurring | Level 2 | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 109 | 131 |
Residential mortgage-backed | Recurring | Level 3 | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 0 | 0 |
Asset-backed | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 4,904 | 3,656 |
Asset-backed | Recurring | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 4,904 | 3,656 |
Asset-backed | Recurring | Level 1 | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 0 | 0 |
Asset-backed | Recurring | Level 2 | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 4,777 | 3,636 |
Asset-backed | Recurring | Level 3 | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 127 | 20 |
Commercial mortgage-backed | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 1,595 | 1,203 |
Commercial mortgage-backed | Recurring | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 1,595 | 1,203 |
Commercial mortgage-backed | Recurring | Level 1 | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 0 | 0 |
Commercial mortgage-backed | Recurring | Level 2 | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 1,584 | 1,203 |
Commercial mortgage-backed | Recurring | Level 3 | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 11 | 0 |
Redeemable preferred stock | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 84 | 641 |
Redeemable preferred stock | Recurring | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 84 | 641 |
Redeemable preferred stock | Recurring | Level 1 | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 0 | 402 |
Redeemable preferred stock | Recurring | Level 2 | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 84 | 239 |
Redeemable preferred stock | Recurring | Level 3 | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 0 | 0 |
Short-term investments | Recurring | ||
Assets: | ||
Other invested assets: | 6 | 83 |
Short-term investments | Recurring | Level 1 | ||
Assets: | ||
Other invested assets: | 0 | 0 |
Short-term investments | Recurring | Level 2 | ||
Assets: | ||
Other invested assets: | 5 | 82 |
Short-term investments | Recurring | Level 3 | ||
Assets: | ||
Other invested assets: | 1 | 1 |
Assets of consolidated VIEs/VOEs | Recurring | ||
Assets: | ||
Other invested assets: | 10 | 12 |
Assets of consolidated VIEs/VOEs | Recurring | Level 1 | ||
Assets: | ||
Other invested assets: | 0 | 0 |
Assets of consolidated VIEs/VOEs | Recurring | Level 2 | ||
Assets: | ||
Other invested assets: | 0 | 0 |
Assets of consolidated VIEs/VOEs | Recurring | Level 3 | ||
Assets: | ||
Other invested assets: | 10 | 12 |
Swaps | Recurring | ||
Assets: | ||
Other invested assets: | (513) | (96) |
Swaps | Recurring | Level 1 | ||
Assets: | ||
Other invested assets: | 0 | 0 |
Swaps | Recurring | Level 2 | ||
Assets: | ||
Other invested assets: | (513) | (96) |
Swaps | Recurring | Level 3 | ||
Assets: | ||
Other invested assets: | 0 | 0 |
Credit default swaps | Recurring | ||
Assets: | ||
Other invested assets: | 3 | 7 |
Credit default swaps | Recurring | Level 1 | ||
Assets: | ||
Other invested assets: | 0 | 0 |
Credit default swaps | Recurring | Level 2 | ||
Assets: | ||
Other invested assets: | 3 | 7 |
Credit default swaps | Recurring | Level 3 | ||
Assets: | ||
Other invested assets: | 0 | 0 |
Options | Recurring | ||
Assets: | ||
Other invested assets: | 6,403 | 4,668 |
Options | Recurring | Level 1 | ||
Assets: | ||
Other invested assets: | 0 | 0 |
Options | Recurring | Level 2 | ||
Assets: | ||
Other invested assets: | 6,403 | 4,668 |
Options | Recurring | Level 3 | ||
Assets: | ||
Other invested assets: | 0 | 0 |
GMxB derivative features’ liability | Recurring | ||
Liabilities: | ||
Liabilities | 8,455 | 10,936 |
GMxB derivative features’ liability | Recurring | Level 1 | ||
Liabilities: | ||
Liabilities | 0 | 0 |
GMxB derivative features’ liability | Recurring | Level 2 | ||
Liabilities: | ||
Liabilities | 0 | 0 |
GMxB derivative features’ liability | Recurring | Level 3 | ||
Liabilities: | ||
Liabilities | 8,455 | 10,936 |
SCS, SIO, MSO and IUL indexed features’ liability | Recurring | ||
Liabilities: | ||
Liabilities | 5,955 | 4,378 |
SCS, SIO, MSO and IUL indexed features’ liability | Recurring | Level 1 | ||
Liabilities: | ||
Liabilities | 0 | 0 |
SCS, SIO, MSO and IUL indexed features’ liability | Recurring | Level 2 | ||
Liabilities: | ||
Liabilities | 5,955 | 4,378 |
SCS, SIO, MSO and IUL indexed features’ liability | Recurring | Level 3 | ||
Liabilities: | ||
Liabilities | $ 0 | $ 0 |
FAIR VALUE DISCLOSURES - Narrat
FAIR VALUE DISCLOSURES - Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||
Fair value adjustments on GMIB asset | $ 128 | $ 160 | |
Fair value adjustments on amounts due from reinsurers | 169 | ||
AFS fixed maturities transferred from Level 3 to Level 2 | 713 | $ 103 | |
AFS fixed maturities transferred from Level 2 to Level 3 | $ 2 | $ 219 | |
AFS fixed maturities transferred between Level 2 and 3 (percentage) | 8.30% | 2.10% | |
Level 3 | Nonrecurring | |||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||
Fair value measurements not included in quantitative information about level 3 fair value measurements | $ 494 | $ 586 |
FAIR VALUE DISCLOSURES - Fair V
FAIR VALUE DISCLOSURES - Fair Value Measurement Reconciliation For All Levels (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Total gains (losses), realized and unrealized, included in: | ||||
Other comprehensive income (loss) | $ 26 | $ (52) | ||
Transfers into level 3 | 2 | 219 | ||
Transfers out of Level 3 | (713) | (103) | ||
Corporate | ||||
Total gains (losses), realized and unrealized, included in: | ||||
Other comprehensive income (loss) | 27 | (54) | ||
States and political subdivisions | ||||
Total gains (losses), realized and unrealized, included in: | ||||
Other comprehensive income (loss) | (1) | 2 | ||
Asset- backed | ||||
Total gains (losses), realized and unrealized, included in: | ||||
Other comprehensive income (loss) | 0 | |||
Amounts Due from Reinsurers | ||||
Total gains (losses), realized and unrealized, included in: | ||||
Other comprehensive income (loss) | 0 | |||
Nonperformance risk | $ 12 | 12 | ||
GMIB Reinsurance Contract Asset | ||||
Total gains (losses), realized and unrealized, included in: | ||||
Other comprehensive income (loss) | 0 | 0 | ||
Nonperformance risk | 17 | 1 | ||
GMxB Derivative Features Liability | ||||
Total gains (losses), realized and unrealized, included in: | ||||
Nonperformance risk | (60) | 24 | ||
Level 3 | Corporate | ||||
Total gains (losses), realized and unrealized, included in: | ||||
Beginning Balance | 1,242 | $ 1,174 | 1,687 | 1,246 |
Net investment income (loss) | 2 | 1 | 3 | 2 |
Investment gains (losses), net | (7) | (11) | (13) | (13) |
Total realized and unrealized gains (losses) | (5) | (10) | (10) | (11) |
Other comprehensive income (loss) | 17 | 6 | 26 | (54) |
Purchases | 294 | 284 | 459 | 345 |
Sales | (135) | (44) | (202) | (90) |
Transfers into level 3 | 0 | 219 | 2 | 219 |
Transfers out of Level 3 | (164) | 23 | (713) | (3) |
Closing Balance | 1,249 | 1,652 | 1,249 | 1,652 |
Level 3 | States and political subdivisions | ||||
Total gains (losses), realized and unrealized, included in: | ||||
Beginning Balance | 38 | 36 | 39 | 39 |
Net investment income (loss) | 0 | 0 | 0 | 0 |
Investment gains (losses), net | 0 | 0 | 0 | 0 |
Total realized and unrealized gains (losses) | 0 | 0 | 0 | 0 |
Other comprehensive income (loss) | 0 | 5 | (1) | 2 |
Purchases | 0 | 0 | 0 | 0 |
Sales | (1) | (1) | (1) | (1) |
Transfers into level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Closing Balance | 37 | 40 | 37 | 40 |
Level 3 | CMBS | ||||
Total gains (losses), realized and unrealized, included in: | ||||
Beginning Balance | 4 | 0 | 0 | 0 |
Net investment income (loss) | 0 | 0 | 0 | 0 |
Investment gains (losses), net | 0 | 0 | 0 | 0 |
Total realized and unrealized gains (losses) | 0 | 0 | 0 | 0 |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Purchases | 7 | 0 | 11 | 0 |
Sales | 0 | 0 | 0 | 0 |
Transfers into level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Closing Balance | 11 | 0 | 11 | 0 |
Level 3 | Asset- backed | ||||
Total gains (losses), realized and unrealized, included in: | ||||
Beginning Balance | 65 | 40 | 20 | 100 |
Net investment income (loss) | 0 | 0 | 0 | 0 |
Investment gains (losses), net | 0 | 0 | 0 | 0 |
Total realized and unrealized gains (losses) | 0 | 0 | 0 | 0 |
Other comprehensive income (loss) | 0 | 8 | 0 | 0 |
Purchases | 73 | (48) | 123 | 0 |
Sales | (11) | 0 | (16) | 0 |
Transfers into level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | (100) |
Closing Balance | 127 | 0 | 127 | 0 |
Level 3 | Other Equity Investments | ||||
Total gains (losses), realized and unrealized, included in: | ||||
Beginning Balance | 12 | 15 | 15 | 16 |
Net investment income (loss) | 2 | 0 | 1 | 0 |
Investment gains (losses), net | 0 | 0 | 0 | 0 |
Total realized and unrealized gains (losses) | 2 | 0 | 1 | 0 |
Other comprehensive income (loss) | (1) | 0 | ||
Purchases | 0 | 1 | 0 | 1 |
Sales | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | |
Other | 0 | 0 | ||
Change in estimate | 0 | |||
Activity related to consolidated VIEs/VOEs | 0 | 0 | (2) | (1) |
Transfers into level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | (1) | 0 |
Closing Balance | 13 | 16 | 13 | 16 |
Level 3 | Amounts Due from Reinsurers | ||||
Total gains (losses), realized and unrealized, included in: | ||||
Beginning Balance | 0 | 0 | 0 | 0 |
Net investment income (loss) | 242 | 0 | 242 | 0 |
Investment gains (losses), net | 0 | 0 | 0 | |
Total realized and unrealized gains (losses) | 242 | 0 | 242 | 0 |
Other comprehensive income (loss) | 0 | 0 | ||
Purchases | 10 | 0 | 10 | 0 |
Sales | (1) | 0 | (1) | 0 |
Settlements | 0 | 0 | 0 | |
Other | 5,259 | 5,259 | ||
Change in estimate | 0 | |||
Activity related to consolidated VIEs/VOEs | 0 | 0 | 0 | 0 |
Transfers into level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Closing Balance | 5,510 | 0 | 5,510 | 0 |
Level 3 | GMIB Reinsurance Contract Asset | ||||
Total gains (losses), realized and unrealized, included in: | ||||
Beginning Balance | 2,133 | 3,305 | 2,859 | 2,466 |
Net investment income (loss) | 0 | 0 | 0 | 0 |
Investment gains (losses), net | 158 | 133 | (566) | 1,026 |
Total realized and unrealized gains (losses) | 158 | 133 | (566) | 1,026 |
Other comprehensive income (loss) | 0 | 0 | ||
Purchases | 10 | 12 | 22 | 23 |
Sales | (11) | (17) | (25) | (37) |
Settlements | 0 | 0 | 0 | |
Other | 0 | 0 | ||
Change in estimate | (45) | |||
Activity related to consolidated VIEs/VOEs | 0 | 0 | 0 | 0 |
Transfers into level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Closing Balance | 2,290 | 3,433 | 2,290 | 3,433 |
Level 3 | Separate Accounts Assets | ||||
Total gains (losses), realized and unrealized, included in: | ||||
Beginning Balance | 0 | 0 | 1 | 0 |
Net investment income (loss) | 0 | 0 | 0 | 0 |
Investment gains (losses), net | 0 | 0 | 0 | 0 |
Total realized and unrealized gains (losses) | 0 | 0 | 0 | 0 |
Other comprehensive income (loss) | 0 | 0 | ||
Purchases | 1 | 0 | 1 | 0 |
Sales | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | |
Other | 0 | 0 | ||
Change in estimate | 0 | |||
Activity related to consolidated VIEs/VOEs | 0 | 0 | 0 | 0 |
Transfers into level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | (1) | 0 |
Closing Balance | 1 | 0 | 1 | 0 |
Level 3 | GMxB Derivative Features Liability | ||||
Total gains (losses), realized and unrealized, included in: | ||||
Beginning Balance | (7,681) | (9,580) | (10,936) | (8,316) |
Net investment income (loss) | 0 | 0 | 0 | 0 |
Investment gains (losses), net | (671) | (2,786) | 2,686 | (3,952) |
Total realized and unrealized gains (losses) | (671) | (2,786) | 2,686 | (3,952) |
Other comprehensive income (loss) | 0 | 0 | ||
Purchases | (118) | (107) | (235) | (215) |
Sales | 15 | 15 | 30 | 25 |
Settlements | 0 | 0 | 0 | |
Other | 0 | 0 | ||
Change in estimate | 0 | |||
Activity related to consolidated VIEs/VOEs | 0 | 0 | 0 | 0 |
Transfers into level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Closing Balance | $ (8,455) | $ (12,458) | $ (8,455) | $ (12,458) |
FAIR VALUE DISCLOSURES - Unreal
FAIR VALUE DISCLOSURES - Unrealized Gains (Losses) For Level 3 Instruments (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net Derivative Gains (Losses) | $ 2,362 | $ (2,926) |
OCI | 26 | (52) |
Corporate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net Derivative Gains (Losses) | 0 | 0 |
OCI | 27 | (54) |
States and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net Derivative Gains (Losses) | 0 | 0 |
OCI | (1) | 2 |
Asset-backed | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net Derivative Gains (Losses) | 0 | |
OCI | 0 | |
Fixed maturities, AFS | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net Derivative Gains (Losses) | 0 | 0 |
OCI | 26 | (52) |
Amounts Due from Reinsurers | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net Derivative Gains (Losses) | 242 | |
OCI | 0 | |
GMIB reinsurance contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net Derivative Gains (Losses) | (566) | 1,026 |
OCI | 0 | 0 |
Separate account assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net Derivative Gains (Losses) | 0 | |
OCI | 0 | |
GMxB derivative features liability | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net Derivative Gains (Losses) | 2,686 | (3,952) |
OCI | $ 0 | $ 0 |
FAIR VALUE DISCLOSURES - Quanti
FAIR VALUE DISCLOSURES - Quantitative Information About Level 3 (Details) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021USD ($) | Dec. 31, 2020USD ($) | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Assets | $ 19,084 | $ 12,045 |
Corporate | Level 3 | Matrix pricing model | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | $ 146 | $ 28 |
Corporate | Level 3 | Matrix pricing model | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0020 | 0.0045 |
Corporate | Level 3 | Matrix pricing model | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0320 | 0.0195 |
Corporate | Level 3 | Matrix pricing model | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0095 | 0.0152 |
Corporate | Level 3 | Market comparable companies | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | $ 799 | $ 1,148 |
Corporate | Level 3 | EBITDA multiple | Market comparable companies | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 4.5 | 3.5 |
Corporate | Level 3 | EBITDA multiple | Market comparable companies | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 26.5 | 33.1 |
Corporate | Level 3 | EBITDA multiple | Market comparable companies | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 11.2 | 10.8 |
Corporate | Level 3 | Discount rate | Market comparable companies | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0588 | 0.00056 |
Corporate | Level 3 | Discount rate | Market comparable companies | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.1458 | 0.00284 |
Corporate | Level 3 | Discount rate | Market comparable companies | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.090 | 0.00086 |
Corporate | Level 3 | Cash flow multiples | Market comparable companies | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.4 | 1.9 |
Corporate | Level 3 | Cash flow multiples | Market comparable companies | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 16.9 | 25 |
Corporate | Level 3 | Cash flow multiples | Market comparable companies | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 6.3 | 6.8 |
Other Equity Investments | Level 3 | Market comparable companies | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | $ 3 | $ 2 |
Other Equity Investments | Level 3 | Revenue multiple | Market comparable companies | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 8.5 | 9.7 |
Other Equity Investments | Level 3 | Revenue multiple | Market comparable companies | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 11 | 26.4 |
Other Equity Investments | Level 3 | Revenue multiple | Market comparable companies | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 10.5 | 18.5 |
GMIB reinsurance contracts | Level 3 | Discounted cash flow | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Assets | $ 2,290 | $ 2,859 |
GMIB reinsurance contracts | Level 3 | Lapse rate | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0056 | 0.00006 |
GMIB reinsurance contracts | Level 3 | Lapse rate | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.1562 | 0.16 |
GMIB reinsurance contracts | Level 3 | Lapse rate | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0189 | 0.00000169 |
GMIB reinsurance contracts | Level 3 | Withdrawal rate | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0036 | 0 |
GMIB reinsurance contracts | Level 3 | Withdrawal rate | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0203 | 0.02 |
GMIB reinsurance contracts | Level 3 | Withdrawal rate | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0088 | 0.0000 |
GMIB reinsurance contracts | Level 3 | Utilization rate | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0004 | 0 |
GMIB reinsurance contracts | Level 3 | Utilization rate | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.006091 | 0.61 |
GMIB reinsurance contracts | Level 3 | Utilization rate | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0525 | 0.00000582 |
GMIB reinsurance contracts | Level 3 | Non-performance risk | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0043 | 0.0043 |
GMIB reinsurance contracts | Level 3 | Non-performance risk | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0085 | 0.0085 |
GMIB reinsurance contracts | Level 3 | Non-performance risk | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0048 | 0.0050 |
GMIB reinsurance contracts | Level 3 | Volatility rates - Equity | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.09 | 0.07 |
GMIB reinsurance contracts | Level 3 | Volatility rates - Equity | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.28 | 0.32 |
GMIB reinsurance contracts | Level 3 | Volatility rates - Equity | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.000024 | 0.24 |
Amounts due from reinsurers | Level 3 | Discounted cash flow | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | $ 5,510 | |
Amounts due from reinsurers | Level 3 | Lapse rate | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0056 | |
Amounts due from reinsurers | Level 3 | Lapse rate | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.1562 | |
Amounts due from reinsurers | Level 3 | Lapse rate | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0179 | |
Amounts due from reinsurers | Level 3 | Withdrawal rate | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0036 | |
Amounts due from reinsurers | Level 3 | Withdrawal rate | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0203 | |
Amounts due from reinsurers | Level 3 | Withdrawal rate | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0109 | |
Amounts due from reinsurers | Level 3 | Utilization rate | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0004 | |
Amounts due from reinsurers | Level 3 | Utilization rate | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.6091 | |
Amounts due from reinsurers | Level 3 | Utilization rate | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0714 | |
Amounts due from reinsurers | Level 3 | Non-performance risk | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0034 | |
Amounts due from reinsurers | Level 3 | Non-performance risk | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0034 | |
Amounts due from reinsurers | Level 3 | Non-performance risk | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0034 | |
Amounts due from reinsurers | Level 3 | Volatility rates - Equity | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.09 | |
Amounts due from reinsurers | Level 3 | Volatility rates - Equity | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.28 | |
Amounts due from reinsurers | Level 3 | Volatility rates - Equity | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.24 | |
GMIBNLG | Level 3 | Discounted cash flow | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | $ 8,378 | $ 10,713 |
GMIBNLG | Level 3 | Lapse rate | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0110 | 0.00011 |
GMIBNLG | Level 3 | Lapse rate | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.2567 | 0.00257 |
GMIBNLG | Level 3 | Lapse rate | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0337 | 0.00000319 |
GMIBNLG | Level 3 | Withdrawal rate | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0036 | 0.00004 |
GMIBNLG | Level 3 | Withdrawal rate | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0203 | 0.02 |
GMIBNLG | Level 3 | Withdrawal rate | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0093 | 0.0000 |
GMIBNLG | Level 3 | Non-performance risk | Discounted cash flow | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.00960 | |
GMIBNLG | Level 3 | Non-performance risk | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0098 | |
GMIBNLG | Level 3 | Non-performance risk | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0098 | |
GMIBNLG | Level 3 | Non-performance risk | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0098 | |
GMIBNLG | Level 3 | Annuitization rate | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0003 | 0 |
GMIBNLG | Level 3 | Annuitization rate | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 1 | 1 |
GMIBNLG | Level 3 | Annuitization rate | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0516 | 0.00000551 |
GWBL/GMWB | Level 3 | Discounted cash flow | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | $ 139 | $ 190 |
GWBL/GMWB | Level 3 | Lapse rate | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0080 | 0.00 |
GWBL/GMWB | Level 3 | Lapse rate | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.1562 | 0.16 |
GWBL/GMWB | Level 3 | Lapse rate | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0189 | 0.00000169 |
GWBL/GMWB | Level 3 | Withdrawal rate | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0 | 0 |
GWBL/GMWB | Level 3 | Withdrawal rate | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0800 | 0.08 |
GWBL/GMWB | Level 3 | Withdrawal rate | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0088 | 0.0000 |
GWBL/GMWB | Level 3 | Utilization rate | Discounted cash flow | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 1 | 1 |
GWBL/GMWB | Level 3 | Non-performance risk | Discounted cash flow | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.00960 | |
GWBL/GMWB | Level 3 | Non-performance risk | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0098 | |
GWBL/GMWB | Level 3 | Non-performance risk | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0098 | |
GWBL/GMWB | Level 3 | Volatility rates - Equity | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.09 | 0.07 |
GWBL/GMWB | Level 3 | Volatility rates - Equity | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.28 | 0.32 |
GWBL/GMWB | Level 3 | Volatility rates - Equity | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.24 | 0.24 |
GIB | Level 3 | Discounted cash flow | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | $ (60) | $ 31 |
GIB | Level 3 | Lapse rate | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0080 | 0.00008 |
GIB | Level 3 | Lapse rate | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.1562 | 0.00000 |
GIB | Level 3 | Lapse rate | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0189 | 0.000169 |
GIB | Level 3 | Withdrawal rate | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0018 | 0 |
GIB | Level 3 | Withdrawal rate | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0203 | 0.02 |
GIB | Level 3 | Withdrawal rate | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0088 | 0.000091 |
GIB | Level 3 | Utilization rate | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0004 | 0 |
GIB | Level 3 | Utilization rate | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 1 | 1 |
GIB | Level 3 | Utilization rate | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0525 | 0.000582 |
GIB | Level 3 | Non-performance risk | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0098 | |
GIB | Level 3 | Non-performance risk | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0098 | |
GIB | Level 3 | Volatility rates - Equity | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.09 | 0.07 |
GIB | Level 3 | Volatility rates - Equity | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.28 | 0.32 |
GIB | Level 3 | Volatility rates - Equity | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.24 | 0.24 |
GMAB | Level 3 | Discounted cash flow | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | $ (2) | $ 2 |
GMAB | Level 3 | Lapse rate | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0080 | 0.00008 |
GMAB | Level 3 | Lapse rate | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.1562 | 0.16 |
GMAB | Level 3 | Lapse rate | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0189 | 0.000169 |
GMAB | Level 3 | Non-performance risk | Discounted cash flow | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.00960 | |
GMAB | Level 3 | Non-performance risk | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0098 | |
GMAB | Level 3 | Non-performance risk | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0098 | |
GMAB | Level 3 | Volatility rates - Equity | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.09 | 0.07 |
GMAB | Level 3 | Volatility rates - Equity | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.28 | 0.32 |
GMAB | Level 3 | Volatility rates - Equity | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.24 | 0.24 |
Age 0-40 | GMIB reinsurance contracts | Level 3 | Mortality rates | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0001 | 0.00 |
Age 0-40 | GMIB reinsurance contracts | Level 3 | Mortality rates | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0018 | 0.0000 |
Age 0-40 | GMIB reinsurance contracts | Level 3 | Mortality rates | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0294 | 0.00000280 |
Age 0-40 | Amounts due from reinsurers | Level 3 | Mortality rates | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0001 | |
Age 0-40 | Amounts due from reinsurers | Level 3 | Mortality rates | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0018 | |
Age 0-40 | Amounts due from reinsurers | Level 3 | Mortality rates | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0221 | |
Age 0-40 | GMIBNLG | Level 3 | Mortality rates | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0001 | 0.00 |
Age 0-40 | GMIBNLG | Level 3 | Mortality rates | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0019 | 0.0000 |
Age 0-40 | GMIBNLG | Level 3 | Mortality rates | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0166 | 0.00000156 |
Age 41-60 | GMIB reinsurance contracts | Level 3 | Mortality rates | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0007 | 0.00 |
Age 41-60 | GMIB reinsurance contracts | Level 3 | Mortality rates | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0054 | 0.0000 |
Age 41-60 | GMIB reinsurance contracts | Level 3 | Mortality rates | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0294 | 0.00000280 |
Age 41-60 | Amounts due from reinsurers | Level 3 | Mortality rates | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0007 | |
Age 41-60 | Amounts due from reinsurers | Level 3 | Mortality rates | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0054 | |
Age 41-60 | Amounts due from reinsurers | Level 3 | Mortality rates | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0221 | |
Age 41-60 | GMIBNLG | Level 3 | Mortality rates | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0006 | 0.00 |
Age 41-60 | GMIBNLG | Level 3 | Mortality rates | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0053 | 0.0000 |
Age 41-60 | GMIBNLG | Level 3 | Mortality rates | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0166 | 0.00000156 |
Ages 61 - 115 | GMIB reinsurance contracts | Level 3 | Mortality rates | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0042 | 0.0000 |
Ages 61 - 115 | GMIB reinsurance contracts | Level 3 | Mortality rates | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.4220 | 0.00004220 |
Ages 61 - 115 | GMIB reinsurance contracts | Level 3 | Mortality rates | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0294 | 0.00000280 |
Ages 61 - 115 | Amounts due from reinsurers | Level 3 | Mortality rates | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0042 | |
Ages 61 - 115 | Amounts due from reinsurers | Level 3 | Mortality rates | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.4220 | |
Ages 61 - 115 | Amounts due from reinsurers | Level 3 | Mortality rates | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0221 | |
Ages 61 - 115 | GMIBNLG | Level 3 | Mortality rates | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0041 | 0.0000 |
Ages 61 - 115 | GMIBNLG | Level 3 | Mortality rates | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.4139 | 0.00004139 |
Ages 61 - 115 | GMIBNLG | Level 3 | Mortality rates | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0166 | 0.00000156 |
FAIR VALUE DISCLOSURES - Carryi
FAIR VALUE DISCLOSURES - Carrying Values And Fair Values Of Financial Instruments (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Consolidated Amounts [Abstract] | ||
Mortgage loans on real estate | $ 13,367 | $ 13,142 |
Policy loans | 3,562 | 3,635 |
Policyholders’ liabilities: Investment contracts | 71,360 | 63,109 |
Separate Accounts liabilities | 142,580 | 133,350 |
Carrying Value | ||
Consolidated Amounts [Abstract] | ||
Mortgage loans on real estate | 13,367 | 13,142 |
Policy loans | 3,562 | 3,635 |
Loans to affiliates | 1,900 | 900 |
Policyholders’ liabilities: Investment contracts | 1,989 | 2,069 |
FHLB funding agreements | 8,213 | 6,897 |
FABN funding agreements | 4,736 | 1,939 |
Separate Accounts liabilities | 11,424 | 10,081 |
Fair Value | ||
Consolidated Amounts [Abstract] | ||
Mortgage loans on real estate | 13,683 | 13,474 |
Policy loans | 4,586 | 4,794 |
Loans to affiliates | 1,923 | 938 |
Policyholders’ liabilities: Investment contracts | 2,133 | 2,275 |
FHLB funding agreements | 8,279 | 6,990 |
FABN funding agreements | 4,738 | 1,971 |
Separate Accounts liabilities | 11,424 | 10,081 |
Fair Value | Level 1 | ||
Consolidated Amounts [Abstract] | ||
Mortgage loans on real estate | 0 | 0 |
Policy loans | 0 | 0 |
Loans to affiliates | 0 | 0 |
Policyholders’ liabilities: Investment contracts | 0 | 0 |
FHLB funding agreements | 0 | 0 |
FABN funding agreements | 0 | 0 |
Separate Accounts liabilities | 0 | 0 |
Fair Value | Level 2 | ||
Consolidated Amounts [Abstract] | ||
Mortgage loans on real estate | 0 | 0 |
Policy loans | 0 | 0 |
Loans to affiliates | 1,923 | 938 |
Policyholders’ liabilities: Investment contracts | 0 | 0 |
FHLB funding agreements | 8,279 | 6,990 |
FABN funding agreements | 4,738 | 1,971 |
Separate Accounts liabilities | 0 | 0 |
Fair Value | Level 3 | ||
Consolidated Amounts [Abstract] | ||
Mortgage loans on real estate | 13,683 | 13,474 |
Policy loans | 4,586 | 4,794 |
Loans to affiliates | 0 | 0 |
Policyholders’ liabilities: Investment contracts | 2,133 | 2,275 |
FHLB funding agreements | 0 | 0 |
FABN funding agreements | 0 | 0 |
Separate Accounts liabilities | $ 11,424 | $ 10,081 |
RELATED PARTY TRANSACTIONS - Na
RELATED PARTY TRANSACTIONS - Narrative (Details) - Equitable Holdings - Term loan, 10 year, 3.23 percent | 1 Months Ended |
Jun. 30, 2021USD ($) | |
Related Party Transaction [Line Items] | |
Related party, amount of transaction | $ 1,000,000,000 |
Debt instrument, term | 10 years |
Related party transaction, rate (as a percent) | 3.23% |
EQUITY - Components of AOCI (De
EQUITY - Components of AOCI (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Equity [Abstract] | ||
Unrealized gains (losses) on investments | $ 2,645 | $ 4,600 |
Defined benefit pension plans | (5) | (5) |
Accumulated other comprehensive income (loss) attributable to Equitable Financial | $ 2,640 | $ 4,595 |
EQUITY - Changes in AOCI (Detai
EQUITY - Changes in AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | ||
Other Comprehensive Income (Loss), Tax [Abstract] | |||||
Net unrealized gains (losses) arising during the period | $ 1,744 | $ 2,633 | $ (2,124) | $ 4,229 | |
(Gains) losses reclassified into net income (loss) during the period | (314) | (134) | (478) | (182) | |
Net unrealized gains (losses) on investments | 1,430 | 2,499 | (2,602) | 4,047 | |
Adjustments for policyholders’ liabilities, DAC, insurance liability loss recognition and other | (271) | (929) | 647 | (967) | |
Change in unrealized gains (losses), net of adjustments (net of deferred income tax expense (benefit) of $308, $416, $(520) and $819) | [1] | 1,159 | 1,570 | (1,955) | 3,080 |
Other comprehensive income (loss), attributable to Equitable Financial | 1,159 | 1,570 | (1,955) | 3,080 | |
Other Comprehensive Income (Loss), Tax, Parenthetical Disclosures [Abstract] | |||||
Deferred income taxes | 308 | 416 | (520) | 819 | |
Unrealized gains (losses) on investments | |||||
Other Comprehensive Income (Loss), Tax [Abstract] | |||||
Reclassification from AOCI, current period, tax | $ 83 | $ 35 | $ 127 | $ 48 | |
[1] | See Note 10 for details of change in unrealized gains (losses), net of adjustments. |
EQUITY - Narrative (Details)
EQUITY - Narrative (Details) | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Equity [Abstract] | |
Statutory accounting practices, statutory surplus, increase | $ 1,500,000,000 |
Statutory accounting practices, hedging losses amortization period | 5 years |
Statutory accounting practices, statutory unassigned surplus, balance | $ 0 |
REDEEMABLE NONCONTROLLING INT_3
REDEEMABLE NONCONTROLLING INTEREST - Summary of Redeemable Noncontrolling Interest (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ||||
Balance, beginning of period | $ 48 | $ 32 | $ 41 | $ 39 |
Net earnings (loss) attributable to redeemable noncontrolling interests | 1 | 2 | 1 | (3) |
Purchase/change of redeemable noncontrolling interests | (25) | 2 | (18) | 0 |
Balance, end of period | $ 24 | $ 36 | $ 24 | $ 36 |
COMMITMENTS AND CONTINGENT LI_3
COMMITMENTS AND CONTINGENT LIABILITIES - Narrative (Details) $ in Millions | Jun. 30, 2021USD ($)saleAndDisclosurePractice | May 31, 2021USD ($) | Feb. 29, 2016USD ($)federalActionlegalAction |
Loss Contingencies [Line Items] | |||
Unaccrued amounts of reasonably possible range of losses | $ 150 | ||
Number of sales and disclosure practices under investigation | saleAndDisclosurePractice | 457 | ||
Federal home loan bank stock | $ 382 | ||
Carrying value of collateral pledged for federal home loan bank | 10,800 | ||
Commitments by the Company to provide equity financing | 1,300 | ||
Commitments under existing mortgage loan agreements | 543 | ||
Affiliated Entity | |||
Loss Contingencies [Line Items] | |||
Commitments by the Company to provide equity financing | 312 | ||
Letter of Credit | |||
Loss Contingencies [Line Items] | |||
Undrawn balance | $ 17 | ||
Trust Notes | |||
Loss Contingencies [Line Items] | |||
Line of credit facility, maximum borrowing capacity | $ 10,000 | ||
Equitable Financial | |||
Loss Contingencies [Line Items] | |||
Number of federal actions | federalAction | 5 | ||
Equitable Financial | New York | |||
Loss Contingencies [Line Items] | |||
Number of actions | legalAction | 2 | ||
Brach Family Foundation Litigation | |||
Loss Contingencies [Line Items] | |||
Liability for future policy benefits, face value of policy | $ 1 |
COMMITMENTS AND CONTINGENT LI_4
COMMITMENTS AND CONTINGENT LIABILITIES - Funding Agreements (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Federal Home Loan Bank (FHLB) | ||
Restructuring Reserve [Roll Forward] | ||
Outstanding Balance, period start | $ 6,890 | |
Issued During the Period | 32,276 | |
Repaid During the Period | 30,948 | |
Long-term Agreements Maturing Within One Year | 0 | |
Long-term Agreements Maturing Within Five Years | 0 | |
Outstanding Balance, period end | 8,218 | |
Difference related to remaining amortization | 6 | $ 7 |
Funding Agreement-Backed Notes Program (FABN) | ||
Restructuring Reserve [Roll Forward] | ||
Outstanding Balance, period start | 1,950 | |
Issued During the Period | 2,809 | |
Repaid During the Period | 0 | |
Long-term Agreements Maturing Within One Year | 0 | |
Long-term Agreements Maturing Within Five Years | 0 | |
Foreign Currency Transaction Adjustment | (17) | |
Outstanding Balance, period end | 4,742 | |
Difference related to remaining amortization | 23 | $ 11 |
Due in one year or less | Federal Home Loan Bank (FHLB) | ||
Restructuring Reserve [Roll Forward] | ||
Outstanding Balance, period start | 5,634 | |
Issued During the Period | 32,276 | |
Repaid During the Period | 30,948 | |
Long-term Agreements Maturing Within One Year | 227 | |
Long-term Agreements Maturing Within Five Years | 0 | |
Outstanding Balance, period end | 7,189 | |
Due in one year or less | Funding Agreement-Backed Notes Program (FABN) | ||
Restructuring Reserve [Roll Forward] | ||
Outstanding Balance, period start | 0 | |
Issued During the Period | 0 | |
Repaid During the Period | 0 | |
Long-term Agreements Maturing Within One Year | 0 | |
Long-term Agreements Maturing Within Five Years | 0 | |
Foreign Currency Transaction Adjustment | 0 | |
Outstanding Balance, period end | 0 | |
Due in years two through five | Federal Home Loan Bank (FHLB) | ||
Restructuring Reserve [Roll Forward] | ||
Outstanding Balance, period start | 722 | |
Issued During the Period | 0 | |
Repaid During the Period | 0 | |
Long-term Agreements Maturing Within One Year | (227) | |
Long-term Agreements Maturing Within Five Years | 409 | |
Outstanding Balance, period end | 904 | |
Due in years two through five | Funding Agreement-Backed Notes Program (FABN) | ||
Restructuring Reserve [Roll Forward] | ||
Outstanding Balance, period start | 1,150 | |
Issued During the Period | 1,000 | |
Repaid During the Period | 0 | |
Long-term Agreements Maturing Within One Year | 0 | |
Long-term Agreements Maturing Within Five Years | 0 | |
Foreign Currency Transaction Adjustment | 0 | |
Outstanding Balance, period end | 2,150 | |
Due in more than five years | Federal Home Loan Bank (FHLB) | ||
Restructuring Reserve [Roll Forward] | ||
Outstanding Balance, period start | 534 | |
Issued During the Period | 0 | |
Repaid During the Period | 0 | |
Long-term Agreements Maturing Within One Year | 0 | |
Long-term Agreements Maturing Within Five Years | (409) | |
Outstanding Balance, period end | 125 | |
Due in more than five years | Funding Agreement-Backed Notes Program (FABN) | ||
Restructuring Reserve [Roll Forward] | ||
Outstanding Balance, period start | 800 | |
Issued During the Period | 1,809 | |
Repaid During the Period | 0 | |
Long-term Agreements Maturing Within One Year | 0 | |
Long-term Agreements Maturing Within Five Years | 0 | |
Foreign Currency Transaction Adjustment | (17) | |
Outstanding Balance, period end | 2,592 | |
Long-term funding agreements | Federal Home Loan Bank (FHLB) | ||
Restructuring Reserve [Roll Forward] | ||
Outstanding Balance, period start | 1,256 | |
Issued During the Period | 0 | |
Repaid During the Period | 0 | |
Long-term Agreements Maturing Within One Year | (227) | |
Long-term Agreements Maturing Within Five Years | 0 | |
Outstanding Balance, period end | 1,029 | |
Long-term funding agreements | Funding Agreement-Backed Notes Program (FABN) | ||
Restructuring Reserve [Roll Forward] | ||
Outstanding Balance, period start | 1,950 | |
Issued During the Period | 2,809 | |
Repaid During the Period | 0 | |
Long-term Agreements Maturing Within One Year | 0 | |
Long-term Agreements Maturing Within Five Years | 0 | |
Foreign Currency Transaction Adjustment | (17) | |
Outstanding Balance, period end | $ 4,742 |
REVISION OF PRIOR PERIOD FINA_3
REVISION OF PRIOR PERIOD FINANCIAL STATEMENTS - Balance Sheet (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
ASSETS | ||||||
Deferred policy acquisition costs | $ 3,985 | $ 3,816 | $ 3,676 | |||
Total Assets | 263,011 | 251,294 | 232,308 | |||
LIABILITIES | ||||||
Future policy benefits and other policyholders' liabilities | 37,042 | 40,151 | 41,411 | |||
Current and deferred income taxes | 0 | 234 | 999 | |||
Total Liabilities | 254,398 | 239,610 | 217,184 | |||
Equity: | ||||||
Retained earnings | (2,584) | (795) | 2,580 | |||
Total equity attributable to Equitable Financial | 15,079 | |||||
Total Equity | 8,589 | $ 6,907 | 11,643 | 15,088 | $ 18,798 | $ 11,565 |
Total Liabilities, Redeemable Noncontrolling Interest and Equity | $ 263,011 | $ 251,294 | 232,308 | |||
As Previously Reported | ||||||
ASSETS | ||||||
Deferred policy acquisition costs | 3,746 | |||||
Total Assets | 232,378 | |||||
LIABILITIES | ||||||
Future policy benefits and other policyholders' liabilities | 41,382 | |||||
Current and deferred income taxes | 1,020 | |||||
Total Liabilities | 217,176 | |||||
Equity: | ||||||
Retained earnings | 2,658 | |||||
Total equity attributable to Equitable Financial | 15,157 | |||||
Total Equity | 15,166 | |||||
Total Liabilities, Redeemable Noncontrolling Interest and Equity | 232,378 | |||||
Impact of Revisions | ||||||
ASSETS | ||||||
Deferred policy acquisition costs | (70) | |||||
Total Assets | (70) | |||||
LIABILITIES | ||||||
Future policy benefits and other policyholders' liabilities | 29 | |||||
Current and deferred income taxes | (21) | |||||
Total Liabilities | 8 | |||||
Equity: | ||||||
Retained earnings | (78) | |||||
Total equity attributable to Equitable Financial | (78) | |||||
Total Equity | (78) | |||||
Total Liabilities, Redeemable Noncontrolling Interest and Equity | $ (70) |
REVISION OF PRIOR PERIOD FINA_4
REVISION OF PRIOR PERIOD FINANCIAL STATEMENTS - Income Statement (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
REVENUES | ||||
Policy charges and fee income | $ 890 | $ 824 | $ 1,770 | $ 1,729 |
Net derivative gains (losses) | (5,908) | (3,916) | 3,624 | |
Net investment income (loss) | 934 | 921 | 1,770 | 1,525 |
Other income | 27 | 10 | 41 | 25 |
Total Revenues | 1,591 | (3,574) | 1,214 | 8,025 |
BENEFITS AND OTHER DEDUCTIONS | ||||
Policyholders’ benefits | 852 | 691 | 1,675 | 3,317 |
Amortization of deferred policy acquisition costs | 187 | 149 | 249 | 1,171 |
Other operating costs and expenses | 225 | 218 | 624 | 432 |
Total benefits and other deductions | 1,776 | 1,539 | 3,594 | 5,931 |
Income (loss) from continuing operations, before income taxes | (185) | (5,113) | (2,380) | 2,094 |
Income tax expense (benefit) from continuing operations | 12 | 1,027 | 599 | (430) |
Net income (loss) | (173) | (4,086) | (1,781) | 1,664 |
Net income (loss) attributable to Equitable Financial | $ (174) | (4,090) | $ (1,782) | 1,667 |
As Previously Reported | ||||
REVENUES | ||||
Policy charges and fee income | 825 | 1,729 | ||
Net derivative gains (losses) | (5,903) | 3,630 | ||
Net investment income (loss) | 934 | 1,525 | ||
Other income | 8 | 25 | ||
Total Revenues | (3,557) | 8,031 | ||
BENEFITS AND OTHER DEDUCTIONS | ||||
Policyholders’ benefits | 700 | 3,297 | ||
Amortization of deferred policy acquisition costs | 164 | 1,222 | ||
Other operating costs and expenses | 218 | 431 | ||
Total benefits and other deductions | 1,563 | 5,961 | ||
Income (loss) from continuing operations, before income taxes | (5,120) | 2,070 | ||
Income tax expense (benefit) from continuing operations | 1,029 | (425) | ||
Net income (loss) | (4,091) | 1,645 | ||
Net income (loss) attributable to Equitable Financial | (4,095) | 1,648 | ||
Impact of Revisions | ||||
REVENUES | ||||
Policy charges and fee income | (1) | 0 | ||
Net derivative gains (losses) | (5) | (6) | ||
Net investment income (loss) | (13) | 0 | ||
Other income | 2 | 0 | ||
Total Revenues | (17) | (6) | ||
BENEFITS AND OTHER DEDUCTIONS | ||||
Policyholders’ benefits | (9) | 20 | ||
Amortization of deferred policy acquisition costs | (15) | (51) | ||
Other operating costs and expenses | 0 | 1 | ||
Total benefits and other deductions | (24) | (30) | ||
Income (loss) from continuing operations, before income taxes | 7 | 24 | ||
Income tax expense (benefit) from continuing operations | (2) | (5) | ||
Net income (loss) | 5 | 19 | ||
Net income (loss) attributable to Equitable Financial | $ 5 | $ 19 |
REVISION OF PRIOR PERIOD FINA_5
REVISION OF PRIOR PERIOD FINANCIAL STATEMENTS - Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Statements of Comprehensive Income (Loss): | ||||
Net income (loss) | $ (173) | $ (4,086) | $ (1,781) | $ 1,664 |
Change in unrealized gains (losses), net of reclassification adjustment | 1,569 | 3,079 | ||
Other comprehensive income (loss) | 1,159 | 1,570 | (1,955) | 3,080 |
Comprehensive income (loss) | 986 | (2,516) | (3,736) | 4,744 |
Less: Comprehensive income (loss) attributable to the noncontrolling interest | 1 | 4 | 1 | (3) |
Comprehensive income (loss) attributable to Equitable Financial | $ 985 | (2,520) | $ (3,737) | 4,747 |
As Previously Reported | ||||
Statements of Comprehensive Income (Loss): | ||||
Net income (loss) | (4,091) | 1,645 | ||
Change in unrealized gains (losses), net of reclassification adjustment | 1,569 | 3,083 | ||
Other comprehensive income (loss) | 1,570 | 3,084 | ||
Comprehensive income (loss) | (2,521) | 4,729 | ||
Less: Comprehensive income (loss) attributable to the noncontrolling interest | (3) | (3) | ||
Comprehensive income (loss) attributable to Equitable Financial | (2,518) | 4,732 | ||
Impact of Revisions | ||||
Statements of Comprehensive Income (Loss): | ||||
Net income (loss) | 5 | 19 | ||
Change in unrealized gains (losses), net of reclassification adjustment | 0 | (4) | ||
Other comprehensive income (loss) | 0 | (4) | ||
Comprehensive income (loss) | 5 | 15 | ||
Less: Comprehensive income (loss) attributable to the noncontrolling interest | 7 | 0 | ||
Comprehensive income (loss) attributable to Equitable Financial | $ (2) | $ 15 |
REVISION OF PRIOR PERIOD FINA_6
REVISION OF PRIOR PERIOD FINANCIAL STATEMENTS - Equity (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | $ 6,907 | $ 18,798 | $ 11,643 | $ 11,565 |
Net income (loss) attributable to Equitable Financial | (174) | (4,090) | (1,782) | 1,667 |
Other comprehensive income (loss) | 1,159 | 1,570 | (1,955) | 3,080 |
Ending balance | 8,589 | 15,088 | 8,589 | 15,088 |
As Previously Reported | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income (loss) attributable to Equitable Financial | (4,095) | 1,648 | ||
Other comprehensive income (loss) | 1,570 | 3,084 | ||
Ending balance | 15,166 | 15,166 | ||
Impact of Revisions | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income (loss) attributable to Equitable Financial | 5 | 19 | ||
Other comprehensive income (loss) | 0 | (4) | ||
Ending balance | (78) | (78) | ||
Retained Earnings | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | (2,403) | 7,870 | (795) | 2,145 |
Net income (loss) attributable to Equitable Financial | (4,090) | 1,667 | ||
Ending balance | (2,584) | 2,580 | (2,584) | 2,580 |
Retained Earnings | As Previously Reported | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | 7,953 | 2,242 | ||
Net income (loss) attributable to Equitable Financial | (4,095) | 1,648 | ||
Ending balance | 2,658 | 2,658 | ||
Retained Earnings | Impact of Revisions | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | (83) | (97) | ||
Net income (loss) attributable to Equitable Financial | 5 | 19 | ||
Ending balance | (78) | (78) | ||
Accumulated Other Comprehensive Income (Loss) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | 1,481 | 3,106 | 4,595 | 1,596 |
Other comprehensive income (loss) | 1,159 | 1,570 | (1,955) | 3,080 |
Ending balance | 2,640 | 4,676 | 2,640 | 4,676 |
Accumulated Other Comprehensive Income (Loss) | As Previously Reported | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | 3,106 | 1,592 | ||
Other comprehensive income (loss) | 1,570 | 3,084 | ||
Accumulated Other Comprehensive Income (Loss) | Impact of Revisions | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | 0 | 4 | ||
Other comprehensive income (loss) | 0 | (4) | ||
Parent | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | 6,907 | 18,789 | 11,643 | 11,552 |
Other comprehensive income (loss) | 1,159 | 1,570 | (1,955) | 3,080 |
Ending balance | $ 8,589 | 15,079 | $ 8,589 | 15,079 |
Parent | As Previously Reported | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Ending balance | 15,157 | 15,157 | ||
Parent | Impact of Revisions | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Ending balance | $ (78) | $ (78) |
REVISION OF PRIOR PERIOD FINA_7
REVISION OF PRIOR PERIOD FINANCIAL STATEMENTS - Cash Flow (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flow from operating activities: | ||||||
Net income (loss) | $ (173) | $ (4,086) | $ (1,781) | $ 1,664 | ||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||||
Net derivative (gains) losses | 5,908 | 3,916 | (3,624) | |||
Amortization and depreciation | 1,130 | |||||
Future policy benefits | 126 | 1,686 | ||||
Current and deferred income taxes | (605) | 439 | ||||
Net cash provided by (used in) operating activities | (888) | (868) | ||||
Cash and cash equivalents | $ 1,816 | 4,318 | $ 1,816 | 4,318 | $ 2,043 | $ 1,492 |
As Previously Reported | ||||||
Cash flow from operating activities: | ||||||
Net income (loss) | (4,091) | 1,645 | ||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||||
Net derivative (gains) losses | 5,903 | (3,630) | ||||
Amortization and depreciation | 1,181 | |||||
Future policy benefits | 1,666 | |||||
Current and deferred income taxes | 433 | |||||
Net cash provided by (used in) operating activities | (868) | |||||
Cash and cash equivalents | 4,318 | 4,318 | ||||
Impact of Revisions | ||||||
Cash flow from operating activities: | ||||||
Net income (loss) | 5 | 19 | ||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||||
Net derivative (gains) losses | 5 | 6 | ||||
Amortization and depreciation | (51) | |||||
Future policy benefits | 20 | |||||
Current and deferred income taxes | 6 | |||||
Net cash provided by (used in) operating activities | 0 | |||||
Cash and cash equivalents | $ 0 | $ 0 |
SUBSEQUENT EVENTS - Narrative (
SUBSEQUENT EVENTS - Narrative (Details) - Subsequent Event - Sustainable Financing - Funding Agreement-Backed Notes Program (FABN) - Equitable Financial Life Global Funding | Jul. 12, 2021USD ($) |
Subsequent Event [Line Items] | |
Debt instrument, face amount | $ 500,000,000 |
Debt instrument, stated percentage | 1.30% |