Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 23, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
Current Fiscal Year End Date | --12-31 | ||
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 Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 0 | ||
Entity Common Stock, Shares Outstanding | 2,000,000 | ||
Documents Incorporated by Reference [Text Block] | Equitable Financial Life Insurance Company meets the conditions set forth in General Instruction (I)(1)(a) and (b) of Form 10-K and is therefore filing this Form with the reduced disclosure format. | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2021 | ||
Amendment Flag | false | ||
Entity Central Index Key | 0000727920 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Audit Information [Abstract] | |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Firm ID | 238 |
Auditor Location | New York, New York |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | |
Investments: | |||
Fixed maturities available-for-sale, at fair value (amortized cost of $68,636 and $68,136) (allowance for credit losses of $22 and $13) | $ 73,076 | $ 76,353 | |
Mortgage loans on real estate (net of allowance for credit losses of $62 and $81) | 14,016 | 13,142 | |
Policy loans | 3,540 | 3,635 | |
Other equity investments | [1] | 2,759 | 1,342 |
Trading securities, at fair value | 379 | 5,340 | |
Other invested assets | 2,910 | 2,383 | |
Total investments | 96,680 | 102,195 | |
Cash and cash equivalents | 1,815 | 2,043 | |
Deferred policy acquisition costs | 4,267 | 3,816 | |
Amounts due from reinsurers (allowance for credit losses of $5 and $5 ) (includes amounts accounted for at fair value of $5,813and $—) | [2] | 13,300 | 3,053 |
Loans to affiliates | 1,900 | 900 | |
GMIB reinsurance contract asset, at fair value | 2,068 | 2,859 | |
Current and deferred income taxes | 842 | 0 | |
Other assets | 3,023 | 3,078 | |
Separate Accounts assets | 143,912 | 133,350 | |
Total Assets | 267,807 | 251,294 | |
LIABILITIES | |||
Policyholders’ account balances | 75,467 | 63,109 | |
Future policy benefits and other policyholders' liabilities | 36,851 | 40,151 | |
Broker-dealer related payables | 630 | 1,064 | |
Amounts due to reinsurers | 135 | 122 | |
Current and deferred income taxes | 0 | 234 | |
Other liabilities | 2,078 | 1,580 | |
Separate Accounts liabilities | 143,912 | 133,350 | |
Total Liabilities | 259,073 | 239,610 | |
Redeemable noncontrolling interest | [3] | 28 | 41 |
Commitments and contingent liabilities (Note 16) | |||
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 | 8,546 | 7,841 | |
Retained earnings | (2,199) | (795) | |
Accumulated other comprehensive income (loss) | 2,357 | 4,595 | |
Total Equity | 8,706 | 11,643 | |
Total Liabilities, Redeemable Noncontrolling Interest and Equity | $ 267,807 | $ 251,294 | |
[1] | See Note 2 of the Notes to these Consolidated Financial Statements for details of balances with VIEs. | ||
[2] | Represents the fair value of the ceded reserves to Venerable. See Note 1 of the Notes to these Consolidated Financial Statements for details of the Venerable transaction and Note 7 of the Notes to these Consolidated Financial Statements. | ||
[3] | See Note 18 of the Notes to these Consolidated Financial Statements for details of redeemable noncontrolling interest. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Fixed maturities available-for-sale, amortized cost | $ 68,636 | $ 68,136 |
Fixed maturities available-for-sale, allowance for credit losses | 22 | 13 |
Mortgage loans on real estate, valuation allowances | 62 | 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 |
Reinsurance recoverable, fair value | $ 5,813 | $ 0 |
Consolidated Statements of Inco
Consolidated Statements of Income (Loss) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
REVENUES | |||
Policy charges and fee income | $ 3,391 | $ 3,464 | $ 3,487 |
Premiums | 750 | 806 | 936 |
Net derivative gains (losses) | (4,685) | (1,541) | (3,831) |
Net investment income (loss) | 3,483 | 3,208 | 3,298 |
Investment gains (losses), net: | |||
Credit losses on available-for-sale debt securities and loans | 2 | (58) | 0 |
Other investment gains (losses), net | 851 | 845 | 206 |
Total investment gains (losses), net | 853 | 787 | 206 |
Investment management and service fees | 1,004 | 1,010 | 1,022 |
Other income | 93 | 57 | 56 |
Total revenues | 4,889 | 7,791 | 5,174 |
BENEFITS AND OTHER DEDUCTIONS | |||
Policyholders’ benefits | 2,982 | 4,951 | 4,088 |
Interest credited to policyholders’ account balances | 1,128 | 1,118 | 1,149 |
Compensation and benefits | 328 | 309 | 335 |
Commissions | 700 | 636 | 629 |
Interest expense | 1 | 0 | 4 |
Amortization of deferred policy acquisition costs | 456 | 1,333 | 520 |
Other operating costs and expenses | 1,164 | 830 | 912 |
Total benefits and other deductions | 6,759 | 9,177 | 7,637 |
Income (loss) from continuing operations, before income taxes | (1,870) | (1,386) | (2,463) |
Income tax (expense) benefit | 474 | 627 | 579 |
Net income (loss) | (1,396) | (759) | (1,884) |
Less: Net income (loss) attributable to the noncontrolling interest | 0 | 0 | 5 |
Net income (loss) attributable to Equitable Financial | $ (1,396) | $ (759) | $ (1,889) |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
COMPREHENSIVE INCOME (LOSS) | ||||
Net income (loss) | $ (1,396) | $ (759) | $ (1,884) | |
Other comprehensive income (loss), net of income taxes: | ||||
Change in unrealized gains (losses), net of adjustment | [1] | (2,238) | 2,999 | 2,095 |
Changes in defined benefit plan related items not yet recognized in periodic benefit cost, net of reclassification adjustment | 0 | 0 | 2 | |
Other comprehensive income (loss), net of income taxes | (2,238) | 2,999 | 2,097 | |
Comprehensive income (loss) | (3,634) | 2,240 | 213 | |
Less: Comprehensive income (loss) attributable to the noncontrolling interest | [1] | 0 | 0 | 5 |
Comprehensive income (loss) attributable to Equitable Financial | $ (3,634) | $ 2,240 | $ 208 | |
[1] | See Note 15 of the Notes to these Consolidated Financial Statements for details of change in unrealized gains (losses), net of adjustments. |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Millions | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Parent | Non-controlling Interest | Cumulative effect of adoption | Cumulative effect of adoptionRetained Earnings | Cumulative effect of adoptionParent |
Beginning balance at Dec. 31, 2018 | $ 12,359 | $ 2 | $ 7,807 | $ 5,039 | $ (501) | $ 12,347 | $ 12 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Dividend to parent company | (1,005) | (1,005) | (1,005) | |||||||
Net income (loss) | (1,889) | (1,889) | (1,889) | |||||||
Other comprehensive income (loss) | 2,097 | 2,097 | 2,097 | |||||||
Other | 3 | 2 | 2 | 1 | ||||||
Ending balance at Dec. 31, 2019 | $ 11,565 | 2 | 7,809 | 2,145 | 1,596 | 11,552 | 13 | $ (32) | $ (32) | $ (32) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Accounting standards update [extensible enumeration] | Accounting Standards Update 2016-13 | |||||||||
Dividend to parent company | $ (2,149) | (2,149) | (2,149) | |||||||
Net income (loss) | (760) | (759) | (759) | (1) | ||||||
Other comprehensive income (loss) | 2,999 | 2,999 | 2,999 | |||||||
Other | 20 | 32 | 32 | (12) | ||||||
Ending balance at Dec. 31, 2020 | 11,643 | 2 | 7,841 | (795) | 4,595 | 11,643 | 0 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Dividend to parent company | (8) | (8) | (8) | |||||||
Capital contribution from parent company | 750 | 750 | 750 | |||||||
Net income (loss) | (1,396) | (1,396) | (1,396) | |||||||
Other comprehensive income (loss) | (2,238) | (2,238) | (2,238) | |||||||
Other | (45) | (45) | (45) | |||||||
Ending balance at Dec. 31, 2021 | $ 8,706 | $ 2 | $ 8,546 | $ (2,199) | $ 2,357 | $ 8,706 | $ 0 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Statement of Cash Flows [Abstract] | ||||
Net income (loss) | $ (1,396) | $ (759) | $ (1,884) | |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||
Interest credited to policyholders’ account balances | 1,128 | 1,118 | 1,149 | |
Policy charges and fee income | (3,391) | (3,464) | (3,487) | |
Net derivative (gains) losses | 4,685 | 1,541 | 3,831 | |
Credit losses on AFS debt securities and loans | (2) | 58 | 0 | |
Investment (gains) losses, net | (851) | (845) | (206) | |
Realized and unrealized (gains) losses on trading securities | 58 | (106) | (429) | |
Non-cash long-term incentive compensation expense | (16) | 29 | 3 | |
Amortization of deferred cost of reinsurance asset | 0 | 0 | (7) | |
Amortization and depreciation | 316 | 1,249 | 391 | |
Equity (income) loss from limited partnerships | (489) | (74) | (73) | |
Changes in: | ||||
Net broker-dealer and customer related receivables/payables | 0 | 0 | 4 | |
Reinsurance recoverable | [1] | (1,165) | (283) | (183) |
Capitalization of deferred policy acquisition costs | (724) | (565) | (648) | |
Future policy benefits | (181) | 1,857 | 1,084 | |
Current and deferred income taxes | (481) | (306) | (329) | |
Other, net | 575 | (218) | 178 | |
Net cash provided by (used in) operating activities | (1,934) | (768) | (606) | |
Proceeds from the sale/maturity/prepayment of: | ||||
Fixed maturities, available-for-sale | 33,815 | 18,453 | 12,450 | |
Mortgage loans on real estate | 1,677 | 630 | 952 | |
Trading account securities | 5,062 | 1,913 | 10,209 | |
Real estate joint ventures | 0 | 55 | 5 | |
Short-term investments | 87 | 1,494 | 2,548 | |
Other | 1,720 | 973 | 253 | |
Payment for the purchase/origination of: | ||||
Fixed maturities, available-for-sale | (42,573) | (26,402) | (28,537) | |
Mortgage loans on real estate | (2,546) | (1,747) | (1,240) | |
Trading account securities | (164) | (534) | (1,067) | |
Short-term investments | (6) | (1,098) | (2,762) | |
Other | (2,663) | (1,174) | (408) | |
Cash settlements related to derivative instruments, net | (5,981) | 1,204 | (961) | |
Issuance of loans to affiliates | (1,000) | 0 | (900) | |
Repayments of loans to affiliates | 0 | 300 | 300 | |
Investment in capitalized software, leasehold improvements and EDP equipment | (59) | (66) | (65) | |
Other, net | 78 | (406) | (55) | |
Net cash provided by (used in) investing activities | (12,553) | (6,405) | (9,278) | |
Cash flows from financing activities: | ||||
Deposits | 16,930 | 10,928 | 12,283 | |
Withdrawals | (7,073) | (4,370) | (4,641) | |
Transfer (to) from Separate Accounts | 2,159 | 2,517 | 1,869 | |
Change in collateralized pledged assets | 34 | (140) | (69) | |
Change in collateralized pledged liabilities | 1,411 | 859 | 1,359 | |
Capital contributions from parent | 750 | 0 | 0 | |
Shareholder dividend paid | (7) | (2,149) | (1,005) | |
Purchase (redemption) of noncontrolling interests of consolidated company-sponsored investment funds | 13 | 9 | 19 | |
Repayment of loans from affiliates | 0 | 0 | (572) | |
Increase (decrease) in securities sold under agreement to repurchase | 0 | 0 | (573) | |
Other, net | 42 | 70 | 84 | |
Net cash provided by (used in) financing activities | 14,259 | 7,724 | 8,754 | |
Change in cash and cash equivalents | (228) | 551 | (1,130) | |
Cash and cash equivalents, beginning of year | 2,043 | 1,492 | 2,622 | |
Cash and cash equivalents, end of year | 1,815 | 2,043 | 1,492 | |
Supplemental cash flow information: | ||||
Interest paid | 0 | 0 | (4) | |
Income taxes (refunded) paid | (7) | (323) | (252) | |
Non-cash transactions from investing and financing activities: | ||||
Transfer of assets to reinsurer | $ (9,023) | $ 0 | $ 0 | |
[1] | Amount includes cash paid for Venerable Transaction of $494 million (see Note 1 of the Notes to these Consolidated Financial Statements). |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) $ in Millions | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Statement of Cash Flows [Abstract] | |
Cash paid for Venerable reinsurance transaction | $ 494 |
ORGANIZATION
ORGANIZATION | 12 Months Ended |
Dec. 31, 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, LLC (“Equitable Distributors”) and Equitable Investment Management Group, LLC (“EIMG”), which both are wholly-owned indirect subsidiaries of Holdings. On June 1, 2021, Holdings completed the sale (the “Venerable Transaction”) of CS Life 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 $60 million, to Equitable Financial for cash consideration. Immediately following the closing of the Venerable Transaction, CS Life and Equitable Financial entered into a coinsurance and modified coinsurance agreement (the “Reinsurance Agreement”), pursuant to which Equitable Financial ceded to CS Life, on a combined coinsurance and modified coinsurance basis, 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, CS Life 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 Venerable Transaction, EIMG acquired an approximate 9.09% equity interest in Venerable’s parent holding company, VA Capital Company LLC. In connection with such investment, EIMG designated a member to the Board of Managers of VA Capital Company LLC. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Principles of Consolidation The preparation of the accompanying consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions (including normal, recurring accruals) that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from these estimates. The accompanying 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 VIEs that meet the requirements for consolidation. Financial results in the historical consolidated financial statements may not be indicative of the results of operations, comprehensive income (loss), financial position, equity or cash flows that would have been achieved had we operated as a separate, standalone entity during the reporting periods presented. We believe that the consolidated financial statements include all adjustments necessary for a fair presentation of the results of operations of the Company. All significant intercompany transactions and balances have been eliminated in consolidation. The years “2021”, “2020” and “2019” refer to the years ended December 31, 2021, 2020 and 2019, respectively. 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 was 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. The ASU also prescribes the discount rate to be used in measuring the liability for future policy benefits for traditional and limited payment long-duration contracts. 2. Measurement of MRBs. MRBs, as defined under the ASU, will encompass certain GMxB features associated with variable annuity products and other general account annuities with other than nominal market risk. 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. 4. Expanded footnote disclosures. The ASU requires additional disclosures including information about significant inputs, judgements, assumptions and methods used in measurement 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 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. For MRBs, the ASU should be applied retrospectively as of the beginning of the earliest period presented. The Company continues to progress with implementation efforts and the evaluation of the impact that adoption of this guidance will have on the Company’s consolidated financial statements. Due to its extensive nature, the adoption of the ASU is expected to have a significant impact on the Company’s consolidated financial statements, as well as systems, processes and controls. Effective January 1, 2023, the new guidance will be adopted using the modified retrospective approach, except for MRBs which will use the full retrospective approach. The Company has created a governance framework and implementation plan to ensure timely adoption of the guidance. In preparation for implementation, the Company continues to refine key accounting policy decisions, modernize processes and update internal controls. These changes include modifications of actuarial valuation systems, data sourcing, analytical procedures and reporting processes. The impact on total equity of applying this ASU is estimated to be less than the current amount of reported AOCI as of December 31, 2021. The majority of the total equity impact as of December 31, 2021 is expected to be reflected in AOCI due to decreases in the Company’s estimate of its non-performance risk on variable annuity guarantees accounted for as MRBs for the first time under the guidance. The estimated impact to the retained earnings element of total equity as of December 31, 2021, due to accounting for variable annuity guarantees as MRBs that are not currently measured at fair value, is mitigated by the Company’s present use of a near industry low interest rate assumption of 2.25% on GMIB business. Because movements in equity markets, interest rates and credit spreads are unpredictable and at times volatile, it is possible that the estimated effects of adoption could change materially between December 31, 2021 and January 1, 2023. 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. On December 15, 2021, the FASB tentatively approved deferring the sunset date of the guidance in Topic 848 to December 31, 2024. 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, and 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. Policy loans represent funds loaned to policyholders up to the cash surrender value of the associated insurance policies and are carried at the unpaid principal balances due to the Company from the policyholders. Interest income on policy loans is recognized in net investment income at the contract interest rate when earned. Policy loans are fully collateralized by the cash surrender value of the associated insurance policies. Partnerships, investment companies and joint venture interests that the Company has control of and has an economic interest in or those that meet the requirements for consolidation under accounting guidance for consolidation of VIEs are consolidated. Those that the Company does not have control of and does not have a majority economic interest in and those that do not meet the VIE requirements for consolidation are reported on the equity method of accounting and are reported in other equity investments. The Company records its interests in certain of these partnerships on a month or one quarter lag. Trading securities, which include equity securities and fixed maturities, are carried at fair value based on quoted market prices, with realized and unrealized gains (losses) reported in net investment income (loss) in the consolidated statements of income (loss). 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 December 31, 2021 and 2020, the carrying value of COLI was $1.0 billion and $989 million, respectively, and is reported in other invested assets in the consolidated balance sheets. Cash and cash equivalents includes cash on hand, demand deposits, money market accounts, overnight commercial paper and highly liquid debt instruments purchased with an original maturity of three months or less. Due to the short-term nature of these investments, the recorded value is deemed to approximate fair value. 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 therefore 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 met, 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. Mortgage Loans on Real Estate Mortgage loans are stated at unpaid principal balances, net of unamortized discounts and the allowance for credit losses. The Company calculates the allowance for credit losses in accordance with the CECL model in order to provide for the risk of credit losses in the lending process. Expected credit losses for loans with similar risk characteristics are estimated on a collective (i.e., pool) basis in order to meet CECL’s risk of loss concept which requires the Company to consider possibilities of loss, even if remote. For collectively evaluated mortgages, the Company estimates the allowance for credit losses based on the amortized cost basis of its mortgages over their expected life using a PD / LGD model. The PD/LGD model incorporates the Company’s reasonable and supportable forecast of macroeconomic information over a specified period. The length of the reasonable and supportable forecast period is reassessed on a quarterly basis and may be adjusted as appropriate over time to be consistent with macroeconomic conditions and the environment as of the reporting date. For periods beyond the reasonable and supportable forecast period, the model reverts to historical loss information. The PD and LGD are estimated at the loan-level based on loans’ current and forecasted risk characteristics as well as macroeconomic forecasts. The PD is estimated using both macroeconomic conditions as well as individual loan risk characteristics including LTV ratios, DSC ratios, seasoning, collateral type, geography, and underlying credit. The LGD is driven primarily by the type and value of collateral, and secondarily by expected liquidation costs and time to recovery. For individually evaluated mortgages, the Company continues to recognize a valuation allowance on the present value of expected future cash flows discounted at the loan’s original effective interest rate or on its collateral value. The CECL model is configured to the Company’s specifications and takes into consideration the detailed risk attributes of each discrete loan in the mortgage portfolio which include, but are not limited to the following: • LTV ratio - Derived from current loan balance divided by the fair market value of the property. An LTV ratio in excess of 100% indicates an underwater mortgage. • DSC ratio - Derived from actual operating earnings divided by annual debt service. If the ratio is below 1.0x, then the income from the property does not support the debt. • Occupancy - Criteria varies by property type but low or below market occupancy is an indicator of sub-par property performance. • Lease expirations - The percentage of leases expiring in the upcoming 12 to 36 months are monitored as a decline in rent and/or occupancy may negatively impact the debt service coverage ratio. In the case of single-tenant properties or properties with large tenant exposure, the lease expiration is a material risk factor. • Other - Any other factors such as maturity, borrower/tenant related issues, payment status, property condition, or current economic conditions may call into question the performance of the loan. Mortgage loans that do not share similar risk characteristics with other loans in the portfolio are individually evaluated quarterly by the Company’s IUS Committee. The allowance for credit losses on these individually evaluated mortgages is a loan-specific reserve as a result of the loan review process that is recorded based on the present value of expected future cash flows discounted at the loan’s effective interest rate or based on the fair value of the collateral. The individually assessed allowance for mortgage loans can increase or decrease from period to period based on such factors. Individually assessed loans may include, but are not limited to, mortgages that have deteriorated in credit quality such as a TDR and reasonably expected TDRs, mortgages for which foreclosure is probable, and mortgages which have been classified as “potential problem” or “problem” loans within the Company’s IUS Committee processes as described below. Within the IUS process, commercial mortgages 60 days or more past due and agricultural mortgages 90 days or more past due, as well as all mortgages in the process of foreclosure, are identified as problem mortgage loans. Based on its monthly monitoring of mortgages, a class of potential problem mortgage loans are also identified, consisting of mortgage loans not currently classified as problem mortgage loans but for which management has doubts as to the ability of the borrower to comply with the present loan payment terms and which may result in the loan becoming a problem or being modified. The decision whether to classify a performing mortgage loan as a potential problem involves judgments by management as to likely future industry conditions and developments with respect to the borrower or the individual mortgaged property. Individually assessed mortgage loans without provision for losses are mortgage loans where the fair value of the collateral or the net present value of the expected future cash flows related to the loan equals or exceeds the recorded investment. Interest income earned on mortgage loans where the collateral value is used to measure impairment is recorded on a cash basis. Interest income on mortgage loans where the present value method is used to measure impairment is accrued on the net carrying value amount of the loan at the interest rate used to discount the cash flows. Mortgage loans are placed on nonaccrual status once management believes the collection of accrued interest is not probable. Once mortgage loans are classified as nonaccrual mortgage loans, interest income is recognized under the cash basis of accounting and the resumption of the interest accrual would commence only after all past due interest has been collected or the mortgage loan has been restructured to where the collection of interest is considered likely. The Company charges off loan balances and accrued interest that are deemed uncollectible. The components of amortized cost for mortgage loans on the consolidated balance sheets excludes accrued interest amounts because the Company presents accrued interest receivables within other assets. Once mortgage loans are placed on nonaccrual status, the Company reverses accrued interest receivable against interest income. Since the nonaccrual policy results in the timely reversal of accrued interest receivable, the Company does not record an allowance for credit losses on accrued interest receivable. Troubled Debt Restructuring The Company invests in commercial and agricultural mortgage loans included in the balance sheet as mortgage loans on real estate and privately negotiated fixed maturities included in the balance sheet as fixed maturities AFS. Under certain circumstances, modifications are granted to these contracts. Each modification is evaluated as to whether a Net Investment Income (Loss), Investment Gains (Losses) Net, and Unrealized Investment Gains (Losses) Realized investment gains (losses) are determined by identification with the specific asset and are presented as a component of revenue. Changes in the allowance for credit losses are included in investment gains (losses), net. Realized and unrealized holding gains (losses) on trading and equity securities are reflected in net investment income (loss). Unrealized investment gains (losses) on fixed maturities designated as AFS held by the Company are accounted for as a separate component of AOCI, net of related deferred income taxes, as are amounts attributable to certain pension operations, Closed Block’s policyholders’ dividend obligation, insurance liability loss recognition, DAC related to UL policies, investment-type products and participating traditional life policies. Changes in unrealized gains (losses) reflect changes in fair value of only those fixed maturities classified as AFS and do not reflect any change in fair value of policyholders’ account balances and future policy benefits. Fair Value of Financial Instruments See Note 7 of the Notes to these Consolidated Financial Statements for additional information regarding determining the fair value of financial instruments. Recognition of Insurance Income and Related Expenses Deposits related to UL and investment-type contracts are reported as deposits to policyholders’ account balances. Revenues from these contracts consist of fees assessed during the period against policyholders’ account balances for mortality charges, policy administration charges and surrender charges. Policy benefits and claims that are charged to expense include benefit claims incurred in the period in excess of related policyholders’ account balances. Premiums from participating and non-participating traditional life and annuity policies with life contingencies generally are recognized in income when due. Benefits and expenses are matched with such income so as to result in the recognition of profits over the life of the contracts. This match is accomplished by means of the provision for liabilities for future policy benefits and the deferral and subsequent amortization of DAC. For contracts with a single premium or a limited number of premium payments due over a significantly shorter period than the total period over which benefits are provided, premiums are recorded as revenue when due with any excess profit deferred and recognized in income in a constant relationship to insurance in-force or, for annuities, the amount of expected future benefit payments. Premiums from individual health contracts are recognized as income over the period to which the premiums relate in proportion to the amount of insurance protection provided. DAC Acquisition costs that vary with and are primarily related to the acquisition of new and renewal insurance business, reflecting incremental direct costs of contract acquisition with independent third parties or employees that are essential to the contract transaction, as well as the portion of employee compensation, including payroll fringe benefits and other costs directly related to underwriting, policy issuance and processing, medical inspection, and contract selling for successfully negotiated contracts including commissions, underwriting, agency and policy issue expenses, are deferred. In each reporting period, DAC amortization, net of the accrual of imputed interest on DAC balances, is recorded to amortization of deferred policy acquisition costs. DAC is subject to recoverability testing at the time of policy issue and loss recognition testing at the end of each accounting period. The determination of DAC, including amortization and recoverability estimates, is based on models that involve numerous assumptions and subjective judgments, including those regarding policyholder behavior, surrender and withdrawal rates, mortality experience, and other inputs including financial market volatility and market rates of return. After the initial establishment of reserves, premium deficiency and loss recognition tests are performed each period end using best estimate assumptions as of the testing date without provisions for adverse deviation. When the liabilities for future policy benefits plus the present value of expected future gross premiums for the aggregate product group are insufficient to provide for expected future policy benefits and expenses for that line of business (i.e., reserves net of any DAC asset), DAC would first be written off and thereafter, if required, a premium deficiency reserve would be established by a charge to earnings. Amortization Policy In accordance with the guidance for the accounting and reporting by insurance enterprises for certain long-duration contracts and participating contracts and for realized gains and losses from the sale of investments, current and expected future profit margins for products covered by this guidance are examined regularly in determining the amortization of DAC. DAC associated with certain variable ann |
INVESTMENTS
INVESTMENTS | 12 Months Ended |
Dec. 31, 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 December 31, 2021 and 2020 was $470 million and $499 million, respectively. There was no accrued interest written off for AFS fixed maturities for the years ended December 31, 2021 and 2020. 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) December 31, 2021 Fixed Maturities: Corporate (1) $ 45,578 $ 22 $ 2,382 $ 214 $ 47,724 U.S. Treasury, government and agency 13,032 — 2,196 14 15,214 States and political subdivisions 527 — 73 3 597 Foreign governments 1,124 — 42 14 1,152 Residential mortgage-backed (2) 82 — 8 — 90 Asset-backed (3) 5,904 — 20 19 5,905 Commercial mortgage-backed 2,348 — 19 26 2,341 Redeemable preferred stock (4) 41 — 12 — 53 Total at December 31, 2021 $ 68,636 $ 22 $ 4,752 $ 290 $ 73,076 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 of the Notes to these Consolidated Financial Statements – Investments). The contractual maturities of AFS fixed maturities as of December 31, 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) December 31, 2021: Contractual maturities: Due in one year or less $ 896 $ 898 Due in years two through five 13,658 14,164 Due in years six through ten 16,486 17,302 Due after ten years 29,199 32,323 Subtotal 60,239 64,687 Residential mortgage-backed 82 90 Asset-backed 5,904 5,905 Commercial mortgage-backed 2,348 2,341 Redeemable preferred stock 41 53 Total at December 31, 2021 $ 68,614 $ 73,076 The following table shows proceeds from sales, gross gains (losses) from sales and credit losses for AFS fixed maturities for the years ended December 31, 2021, 2020 and 2019: Proceeds from Sales, Gross Gains (Losses) from Sales and Credit Losses for AFS Fixed Maturities Year Ended December 31, 2021 2020 2019 (in millions) Proceeds from sales $ 26,678 $ 12,670 $ 8,702 Gross gains on sales $ 1,141 $ 854 $ 229 Gross losses on sales $ (189) $ (34) $ (28) Credit losses $ (16) $ (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 Year Ended December 31, 2021 2020 2019 (in millions) Balance, beginning of period $ 28 $ 15 $ 46 Previously recognized impairments on securities that matured, paid, prepaid or sold (2) — (31) 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 9 6 — Additional credit losses this period on securities previously impaired 7 7 — 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 December 31, $ 42 $ 28 $ 15 ______________ (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, January 1, 2021 $ 8,230 $ (466) $ (1,814) $ (1,250) $ 4,700 Net investment gains (losses) arising during the period (2,902) — — — (2,902) Reclassification adjustment: — Included in net income (loss) (835) — — — (835) Excluded from net income (loss) — — — — — Other (31) — — — (31) Impact of net unrealized investment gains (losses) — 182 837 577 1,596 Net unrealized investment gains (losses) excluding credit losses 4,462 (284) (977) (673) 2,528 Net unrealized investment gains (losses) with credit losses — — — — — Balance, December 31, 2021 $ 4,462 $ (284) $ (977) $ (673) $ 2,528 Balance, January 1, 2020 $ 3,084 $ (826) $ (192) $ (433) $ 1,633 Net investment gains (losses) arising during the period 5,953 — — — 5,953 Reclassification adjustment: — Included in Net income (loss) (802) — — — (802) Excluded from Net income (loss) — — — — — Impact of net unrealized investment gains (losses) — 360 (1,623) (818) (2,081) Net unrealized investment gains (losses) excluding credit losses 8,235 (466) (1,815) (1,251) 4,703 Net unrealized investment gains (losses) with credit losses (5) — 1 1 (3) Balance, December 31, 2020 $ 8,230 $ (466) $ (1,814) $ (1,250) $ 4,700 Balance, January 1, 2019 $ (577) $ 37 $ (69) $ 125 $ (484) Net investment gains (losses) arising during the period 3,872 — — — 3,872 Reclassification adjustment: Included in Net income (loss) (211) — — — (211) Excluded from Net income (loss) — — — — — Impact of net unrealized investment gains (losses) — (863) (123) (558) (1,544) Net unrealized investment gains (losses) excluding credit losses 3,084 (826) (192) (433) 1,633 Net unrealized investment gains (losses) with credit losses — — — — — Balance, December 31, 2019 $ 3,084 $ (826) $ (192) $ (433) $ 1,633 _____________ (1) Effective January 1, 2021, certain preferred stock have been reclassified to other equity investments (see Note 2 of the Notes to these Consolidated Financial Statements – Investments). The following tables disclose the fair values and gross unrealized losses of the 1,896 issues as of December 31, 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) December 31, 2021 Fixed Maturities: Corporate $ 9,497 $ 150 $ 1,301 $ 62 $ 10,798 $ 212 U.S. Treasury, government and agency 947 10 103 4 1,050 14 States and political subdivisions 112 2 11 1 123 3 Foreign governments 349 6 92 8 441 14 Asset-backed 3,843 19 38 — 3,881 19 Commercial mortgage-backed 1,515 22 96 4 1,611 26 Total at December 31, 2021 $ 16,263 $ 209 $ 1,641 $ 79 $ 17,904 $ 288 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 0.6% of total corporate securities. The largest exposures to a single issuer of corporate securities held as of December 31, 2021 and December 31, 2020 were $280 million and $338 million, respectively, representing 3.2% 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 December 31, 2021 and December 31, 2020, respectively, approximately $2.8 billion and $2.4 billion, or 4.1% and 3.6%, of the $68.6 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 $18 million and $48 million as of December 31, 2021 and December 31, 2020, respectively. As of December 31, 2021 and December 31, 2020, respectively, the $79 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 of t he Notes to these Consolidated Financial Statements, the Company concluded that an adjustment to allowance for credit losses for these securities was not warranted at either December 31, 2021 or December 31, 2020. As of December 31, 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 December 31, 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 December 31, 2021 was $57 million and $58 million, respectively. There was no accrued interest written off for commercial and agricultural mortgage loans for the years ended December 31, 2021 and 2020. As of December 31, 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 years ended December 31, 2021 and 2020 were as follows: Year Ended December 31, 2021 2020 (in millions) Allowance for credit losses on mortgage loans: Commercial mortgages: Balance, beginning of period $ 77 $ 33 Current-period provision for expected credit losses (20) 44 Write-offs charged against the allowance — — Recoveries of amounts previously written off — — Net change in allowance (20) 44 Balance, end of period $ 57 $ 77 Agricultural mortgages: Balance, beginning of period $ 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 $ 5 $ 4 Total allowance for credit losses $ 62 $ 81 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 December 31, 2021 and December 31, 2020. LTV Ratios (1) December 31, 2021 Amortized Cost Basis by Origination Year 2021 2020 2019 2018 2017 Prior Total (in millions) Mortgage loans: Commercial: 0% - 50% $ — $ — $ — $ 184 $ 293 $ 992 $ 1,469 50% - 70% 1,967 1,334 407 619 491 2,533 7,351 70% - 90% 190 236 412 415 276 972 2,501 90% plus — — — 35 5 73 113 Total commercial $ 2,157 $ 1,570 $ 819 $ 1,253 $ 1,065 $ 4,570 $ 11,434 Agricultural: 0% - 50% $ 180 $ 212 $ 128 $ 129 $ 119 $ 738 $ 1,506 50% - 70% 200 268 102 126 87 338 1,121 70% - 90% — — — — — 17 17 90% plus — — — — — — — Total agricultural $ 380 $ 480 $ 230 $ 255 $ 206 $ 1,093 $ 2,644 Total mortgage loans: 0% - 50% $ 180 $ 212 $ 128 $ 313 $ 412 $ 1,730 $ 2,975 50% - 70% 2,167 1,602 509 745 578 2,871 8,472 70% - 90% 190 236 412 415 276 989 2,518 90% plus — — — 35 5 73 113 Total mortgage loans $ 2,537 $ 2,050 $ 1,049 $ 1,508 $ 1,271 $ 5,663 $ 14,078 Debt Service Coverage Ratios (2) December 31, 2021 Amortized Cost Basis by Origination Year 2021 2020 2019 2018 2017 Prior Total (in millions) Mortgage loans: Commercial: Greater than 2.0x $ 1,143 $ 1,243 $ 210 $ 772 $ 485 $ 2,218 $ 6,071 1.8x to 2.0x 185 135 250 46 161 372 1,149 1.5x to 1.8x 275 97 284 211 166 919 1,952 1.2x to 1.5x 264 95 75 101 253 701 1,489 1.0x to 1.2x 290 — — 88 — 287 665 Less than 1.0x — — — 35 — 73 108 Total commercial $ 2,157 $ 1,570 $ 819 $ 1,253 $ 1,065 $ 4,570 $ 11,434 Agricultural: Greater than 2.0x $ 49 $ 64 $ 25 $ 22 $ 24 $ 210 $ 394 1.8x to 2.0x 52 37 25 14 14 70 212 1.5x to 1.8x 43 113 28 22 41 193 440 1.2x to 1.5x 161 179 112 116 72 355 995 1.0x to 1.2x 75 83 31 77 54 226 546 Less than 1.0x — 4 9 4 1 39 57 Total agricultural $ 380 $ 480 $ 230 $ 255 $ 206 $ 1,093 $ 2,644 Total mortgage loans: December 31, 2021 Amortized Cost Basis by Origination Year 2021 2020 2019 2018 2017 Prior Total (in millions) Greater than 2.0x $ 1,192 $ 1,307 $ 235 $ 794 $ 509 $ 2,428 $ 6,465 1.8x to 2.0x 237 172 275 60 175 442 1,361 1.5x to 1.8x 318 210 312 233 207 1,112 2,392 1.2x to 1.5x 425 274 187 217 325 1,056 2,484 1.0x to 1.2x 365 83 31 165 54 513 1,211 Less than 1.0x — 4 9 39 1 112 165 Total mortgage loans $ 2,537 $ 2,050 $ 1,049 $ 1,508 $ 1,271 $ 5,663 $ 14,078 _____________ (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. Past-Due and Nonaccrual Mortgage Loan Status The following table provides information relating to the aging analysis of past-due mortgage loans as of December 31, 2021 and 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) December 31, 2021: Mortgage loans: Commercial $ — $ — $ — $ — $ 11,434 $ 11,434 $ — $ 11,434 $ — $ — Agricultural 1 1 25 27 2,601 2,628 16 2,644 — — Total $ 1 $ 1 $ 25 $ 27 $ 14,035 $ 14,062 $ 16 $ 14,078 $ — $ — 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 December 31, 2021 and December 31, 2020, the carrying values of problem mortgage loans that had been classified as non-accrual loans were $14 million and $0 million, respectively. Troubled Debt Restructuring During the years ended December 31, 2021 and 2020, the Company identified an immaterial amount of TDRs. Equity Securities The table below presents a breakdown of unrealized and realized gains and (losses) on equity securities during the year ended December 31, 2021. Unrealized and Realized Gains (Losses) from Equity Securities (1) Year Ended December 31, 2021 (in millions) Net investment gains (losses) recognized during the period on securities held at the end of the period $ 9 Net investment gains (losses) recognized on securities sold during the period (2) Unrealized and realized gains (losses) on equity securities $ 7 ______________ (1) Effective January 1, 2021, certain preferred stock have been reclassified to other equity investments (see Note 2 of the Notes to these Consolidated Financial Statements – Investments). Trading Securities As of December 31, 2021 and December 31, 2020, respectively, the fair value of the Company’s trading securities was $379 million and $5.3 billion. As of December 31, 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 years ended December 31, 2021, 2020 and 2019: Net Investment Income (Loss) from Trading Securities Year Ended December 31, 2021 2020 2019 (in millions) Net investment gains (losses) recognized during the period on securities held at the end of the period $ (264) $ 96 $ 422 Net investment gains (losses) recognized on securities sold during the period 206 10 7 Unrealized and realized gains (losses) on trading securities (58) 106 429 Interest and dividend income from trading securities 92 206 283 Net investment income (loss) from trading securities $ 34 $ 312 $ 712 Net Investment Income (Loss) The following table breaks out net investment income (loss) by asset category: Year Ended December 31, 2021 2020 2019 (in millions) Fixed maturities $ 2,293 $ 2,193 $ 1,902 Mortgage loans on real estate 547 516 540 Other equity investments 525 79 72 Policy loans 209 198 198 Trading securities 34 312 712 Other investment income 47 49 18 Gross investment income (loss) 3,655 3,347 3,442 Investment expenses (172) (139) (144) Net investment income (loss) $ 3,483 $ 3,208 $ 3,298 Investment Gains (Losses), Net Investment gains (losses), net including changes in the valuation allowances and credit losses are as follows: Year Ended December 31, 2021 2020 2019 (in millions) Fixed maturities $ 834 $ 801 $ 203 Mortgage loans on real estate 20 (45) (1) Other equity investments (1) — 30 3 Other (1) 1 1 Investment gains (losses), net $ 853 $ 787 $ 206 (1) Investment gains (losses), net of Other equity investments includes Real Estate Held for production during years ended December 31, 2020 and December 31, 2019. For the years ended December 31, 2021, 2020 and 2019, respectively, investment results passed through to certain participating group annuity contracts as interest credited to policyholders’ account balances totaled $2 million, $2 million and $2 million. |
DERIVATIVES
DERIVATIVES | 12 Months Ended |
Dec. 31, 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 and cash flow hedges, 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 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. The tables below present quantitative disclosures about the Company’s derivative instruments designated in hedging relationships and derivative instruments which have not been designated in hedging relationships, including those embedded in other contracts required to be accounted for as derivative instruments. The following table presents the gross notional amount and estimated fair value of the Company’s derivatives: Derivative Instruments by Category December 31, 2021 December 31, 2020 Fair Value Fair Value Notional Derivative Assets Derivative Notional Derivative Assets Derivative (in millions) Derivatives: Designated for Hedge accounting (1) Cash Flow Hedges: Currency Swaps $ 921 $ 7 $ 42 $ — $ — $ — Interest Swaps 955 — 395 957 — 219 Total: Designated for Hedge Accounting 1,876 7 437 957 — 219 Derivatives: Not designated for Hedge accounting (1) Equity contracts: Futures (5) 2,213 — — 4,267 — — Swaps (5) 13,310 5 — 22,404 6 — Options 48,380 12,015 5,059 35,786 8,383 3,715 Interest rate contracts: Futures (5) 12,455 — — 18,161 — — Swaps (5) 1,876 — 45 22,816 551 434 Swaptions — — — — — — Credit contracts: Credit default swaps 619 2 3 919 8 1 Currency contracts: Currency Swaps 541 1 — 347 — — Currency forwards — — — — — — Other contracts: Margin — 102 — — 26 66 Collateral — 178 6,154 — 212 3,835 Total: Not designated for Hedge accounting 79,394 12,303 11,261 104,700 9,186 8,051 Embedded Derivatives: Amounts due from reinsurers (6) — 5,813 — — — — GMIB reinsurance contracts (2) — 2,068 — — 2,859 — GMxB derivative features liability (3) — — 8,525 — — 10,936 SCS, SIO, MSO and IUL indexed features (4) — — 6,641 — — 4,378 Total Embedded Derivatives — 7,881 15,166 — 2,859 15,314 Total derivative instruments $ 81,270 $ 20,191 $ 26,864 $ 105,657 $ 12,045 $ 23,584 ______________ (1) Reported in other invested assets in the consolidated balance sheets. (2) Reported in GMIB reinsurance contract asset in the consolidated balance sheets. (3) Reported in future policy benefits and other policyholders’ liabilities in the consolidated balance sheets. (4) Reported in policyholders’ account balances in the consolidated balance sheets. (5) Decrease in futures and swaps notional as of December 31, 2021 is primarily due to the Venerable Transaction (see Note 1 of the Notes to these Consolidated Financial Statements). The following table presents the effects of derivative instruments on the consolidated statements of income and comprehensive income (loss). Year Ended December 31, 2021 Year Ended December 31, 2020 Year Ended December 31, 2019 Net Interest Credited To Policyholders Account Balances AOCI Net Interest Credited To Policyholders Account Balances AOCI Net Interest Credited To Policyholders Account Balances AOCI (in millions) Derivatives: Designated for hedge accounting Cash flow hedges: Currency swaps $ (2) $ (45) $ 5 $ — $ — $ — $ — $ — $ — Interest swaps (69) — (87) (9) — (87) 4 — (28) Total: Designated for hedge accounting (71) (45) (82) (9) — (87) 4 — (28) Derivatives: Not designated for hedge accounting Equity contracts: Futures (607) — — (955) — — (1,294) — — Swaps (3,608) — — (3,353) — — (2,405) — — Options 3,883 — — 1,663 — — 2,211 — — Interest rate contracts: Futures (727) — — 1,745 — — 139 — — Swaps (2,316) — — 2,832 — — 2,033 — — Swaptions — — — 9 — — (35) — — Credit contracts: Credit default swaps 1 — — — — — 16 — — Currency contracts: Currency swaps 3 — — (2) — — (9) — — Currency forwards — — — — — — — — — Other contracts: Margin — — — — — — — — — Collateral — — — — — — — — — Total: Not designated for hedge accounting (3,371) — — 1,939 — — 656 — — Embedded Derivatives: Amounts due from reinsurers 517 — — — — — — — — GMIB reinsurance contracts (777) — — 472 — — 500 — — GMxB derivative features liability 2,792 — — (2,238) — — (2,439) — — SCS, SIO, MSO and IUL indexed features (3,760) — — (1,693) — — (2,552) — — Total Embedded Derivatives (1,228) — — (3,459) — — (4,491) — — Total Derivatives $ (4,670) $ (45) $ (82) $ (1,529) $ — $ (87) $ (3,831) $ — $ (28) ______________ (1) Reported in net derivative gains (losses) in the consolidated statements of income (loss). (2) For the years ended December 31, 2021 and 2020, investment fees of $15 million and $12 million respectively, are reported in net derivative gains (losses) in the consolidated statements of income (loss). The table that follow below present a roll-forward of cash flow hedges recognized in AOCI. Rollforward of Cash flow hedges in AOCI Year Ended December 31, 2021 2020 2019 (in millions) Balance, beginning of period $ (126) $ (38) $ (10) Amount recorded in AOCI — — — Currency Swaps (35) — — Interest Swaps (183) (108) (45) Total Amount recorded in AOCI (218) (108) (45) Amount reclassified from AOCI to income — — — Currency Swaps 40 — — Interest Swaps 96 20 17 Total Amount reclassified from AOCI to income 136 20 17 Ending Balance, December 31 (1) $ (208) $ (126) $ (38) ______________ (1) The Company does not estimate the amount of the deferred losses in AOCI at years ended December 31, 2021, 2020 and 2019 which will be released and reclassified into Net income (loss) over the next 12 months as the amounts cannot be reasonably estimated. Equity-Based and Treasury Futures Contracts Margin All outstanding equity-based and treasury futures contracts as of December 31, 2021 and December 31, 2020 are exchange-traded and net settled daily in cash. As of December 31, 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 $90 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 $196 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 December 31, 2021 and December 31, 2020, respectively, the Company held $6.2 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 $178 million and $212 million as of December 31, 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 December 31, 2021 and December 31, 2020: Offsetting of Financial Assets and Liabilities and Derivative Instruments As of December 31, 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 $ 12,309 $ 10,724 $ 1,585 $ (961) $ 624 Other financial assets 1,325 — 1,325 — 1,325 Other invested assets $ 13,634 $ 10,724 $ 2,910 $ (961) $ 1,949 Liabilities: Derivative liabilities $ 10,738 $ 10,724 $ 14 $ — $ 14 Other financial liabilities 2,064 — 2,064 — 2,064 Other liabilities $ 12,802 $ 10,724 $ 2,078 $ — $ 2,078 ______________ (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 assets 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 | 12 Months Ended |
Dec. 31, 2021 | |
Closed Block Disclosure [Abstract] | |
CLOSED BLOCK | CLOSED BLOCK As 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 NYDFS. Closed Block assets and liabilities are carried on the same basis as similar assets and liabilities held in the General Account. The excess of Closed Block liabilities over Closed Block assets (adjusted to exclude the impact of related amounts in AOCI) represents the expected maximum future post-tax earnings from the Closed Block that would be recognized in income from continuing operations over the period the policies and contracts in the Closed Block remain in force. As of January 1, 2001, the Company has developed an actuarial calculation of the expected timing of the Closed Block’s earnings. If the actual cumulative earnings from the Closed Block are greater than the expected cumulative earnings, only the expected earnings will be recognized in net income. Actual cumulative earnings in excess of expected cumulative earnings at any point in time are recorded as a policyholder dividend obligation because they will ultimately be paid to Closed Block policyholders as an additional policyholder dividend unless offset by future performance that is less favorable than originally expected. If a policyholder dividend obligation has been previously established and the actual Closed Block earnings in a subsequent period are less than the expected earnings for that period, the policyholder dividend obligation would be reduced (but not below zero). If, over the period the policies and contracts in the Closed Block remain in force, the actual cumulative earnings of the Closed Block are less than the expected cumulative earnings, only actual earnings would be recognized in income from continuing operations. If the Closed Block has insufficient funds to make guaranteed policy benefit payments, such payments will be made from assets outside the Closed Block. Many expenses related to Closed Block operations, including amortization of DAC, are charged to operations outside of the Closed Block; accordingly, net revenues of the Closed Block do not represent the actual profitability of the Closed Block operations. Operating costs and expenses outside of the Closed Block are, therefore, disproportionate to the business outside of the Closed Block. Summarized financial information for the Company’s Closed Block is as follows: December 31, 2021 2020 (in millions) Closed Block Liabilities: Future policy benefits, policyholders’ account balances and other $ 5,928 $ 6,201 Policyholder dividend obligation — 160 Other liabilities 39 39 Total Closed Block liabilities 5,967 6,400 Assets Designated to the Closed Block: Fixed maturities AFS, at fair value (amortized cost of $3,185 and $3,359) (allowance for credit losses of $0 and $0) 3,390 3,718 Mortgage loans on real estate (net of allowance for credit losses of $4 and $6) 1,771 1,773 Policy loans 602 648 Cash and other invested assets 63 28 Other assets 90 169 Total assets designated to the Closed Block 5,916 6,336 Excess of Closed Block liabilities over assets designated to the Closed Block 51 64 Amounts included in AOCI: Net unrealized investment gains (losses), net of policyholders’ dividend obligation: $0 and $160; and net of income tax: $(43) and $(42) 172 167 Maximum future earnings to be recognized from Closed Block assets and liabilities $ 223 $ 231 The Company’s Closed Block revenues and expenses were as follows: Year Ended December 31, 2021 2020 2019 (in millions) Revenues: Premiums and other income $ 144 $ 157 $ 182 Net investment income (loss) 237 251 278 Investment gains (losses), net 4 — (1) Total revenues 385 408 459 Benefits and Other Deductions: Policyholders’ benefits and dividends 372 399 439 Other operating costs and expenses 3 1 2 Total benefits and other deductions 375 400 441 Net income (loss), before income taxes 10 8 18 Income tax (expense) benefit (2) (2) (2) Net income (loss) $ 8 $ 6 $ 16 A reconciliation of the Company’s policyholder dividend obligation follows: Year Ended December 31, 2021 2020 2019 (in millions) Beginning balance $ 160 $ 2 $ — Unrealized investment gains (losses) (160) 158 2 Ending balance $ — $ 160 $ 2 |
DAC AND POLICYHOLDER BONUS INTE
DAC AND POLICYHOLDER BONUS INTEREST CREDITS | 12 Months Ended |
Dec. 31, 2021 | |
Contract holder Bonus Interest Credits [Abstract] | |
DAC AND POLICYHOLDER BONUS INTEREST CREDITS | DAC AND POLICYHOLDER BONUS INTEREST CREDITS Changes in the DAC asset for the years ended December 31, 2021, 2020 and 2019 were as follows: Year Ended December 31, 2021 2020 2019 (in millions) Balance, beginning of year (1) $ 3,816 $ 4,225 $ 4,959 Capitalization of commissions, sales and issue expenses 724 564 646 Amortization: Impact of assumptions updates and model changes 19 (866) 77 All other (475) (467) (597) Total amortization (456) (1,333) (520) Change in unrealized investment gains and losses 183 360 (863) Balance, end of year $ 4,267 $ 3,816 $ 4,222 _______________ (1) December 31, 2020 DAC beginning balance is $3 million more than December 31, 2019 ending balance due to impact of CECL. The deferred asset for policyholder bonus interest credits is reported in other assets in the consolidated balance sheets and changes in the deferred asset for policyholder bonus Interest credits are reported in interest credited to policyholders’ account balances. For the years ended December 31, 2021, 2020 and 2019 changes were as follows: Year Ended December 31, 2021 2020 2019 (in millions) Balance, beginning of year $ 405 $ 431 $ 448 Amortization charged to income (44) (26) (17) Balance, end of year $ 361 $ 405 $ 431 |
FAIR VALUE DISCLOSURES
FAIR VALUE DISCLOSURES | 12 Months Ended |
Dec. 31, 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 December 31, 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 December 31, 2021 Level 1 Level 2 Level 3 Total (in millions) Assets: Investments: Fixed maturities, AFS: Corporate (1) $ — $ 46,231 $ 1,493 $ 47,724 U.S. Treasury, government and agency — 15,214 — 15,214 States and political subdivisions — 562 35 597 Foreign governments — 1,152 — 1,152 Residential mortgage-backed (2) — 90 — 90 Asset-backed (3) — 5,897 8 5,905 Commercial mortgage-backed — 2,321 20 2,341 Redeemable preferred stock — 53 — 53 Total fixed maturities, AFS — 71,520 1,556 73,076 Other equity investments 243 434 5 682 Trading securities 193 186 — 379 Other invested assets: Short-term investments — — — — Assets of consolidated VIEs/VOEs — — 8 8 Swaps — (469) — (469) Credit default swaps — (1) — (1) Options — 6,956 — 6,956 Total other invested assets — 6,486 8 6,494 Cash equivalents 1,109 273 — 1,382 Amounts due from reinsurer (5) — — 5,813 5,813 GMIB reinsurance contracts asset — — 2,068 2,068 Separate Accounts assets (4) 140,740 2,565 1 143,306 Total Assets $ 142,285 $ 81,464 $ 9,451 $ 233,200 Liabilities: GMxB derivative features’ liability $ — $ — $ 8,525 $ 8,525 SCS, SIO, MSO and IUL indexed features’ liability — 6,641 — 6,641 Total Liabilities $ — $ 6,641 $ 8,525 $ 15,166 ______________ (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 December 31, 2021 the fair value of such investments was $404 million. (5) This represents GMIB NLG ceded reserves related to Venerable transaction. See Note 1 of the Notes to these Consolidated Financial Statements 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 of the Notes to these Consolidated Financial Statements 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 US Treasury 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 $148 million and $160 million as of December 31, 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 $210 million at December 31, 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 year ended December 31, 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 $27 million were transferred from Level 2 into the Level 3 classification. These transfers in the aggregate represent approximately 8.5% of total equity as of December 31, 2021. During the year ended December 31, 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 $184 million were transferred from Level 2 into the Level 3 classification. These transfers in the aggregate represent approximately 2.5% of total equity as of December 31, 2020. The tables below present reconciliations for all Level 3 assets and liabilities and changes in unrealized gains (losses) for the years ended December 31, 2021, 2020 and 2019, respectively. Corporate State and Political Subdivisions CMBS Asset-backed Trading Securities, at Fair Value (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) 5 — — — — Investment gains (losses), net (16) — — — — Subtotal (11) — — — — Other comprehensive income (loss) 34 (2) — — — Purchases 937 — 20 6 — Sales (468) (2) — (18) — Activity related to consolidated VIEs/VOEs — — — — Transfers into Level 3 (1) 27 — — — — Transfers out of Level 3 (1) (713) — — — — Corporate State and Political Subdivisions CMBS Asset-backed Trading Securities, at Fair Value (in millions) Balance, December 31, 2021 $ 1,493 $ 35 $ 20 $ 8 $ — Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (2) $ — $ — $ — $ — $ — Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period (2) $ 28 $ (2) $ — $ — $ — 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) 4 — — — — Investment gains (losses), net (16) — — — — Subtotal (12) — — — — Other comprehensive income (loss) (17) 2 — — — Purchases 513 — — 20 — Sales (224) (2) — — — Transfers into Level 3 (1) 184 — — — — Transfers out of Level 3 (1) (3) — — (100) — Balance, December 31, 2020 $ 1,687 $ 39 $ — $ 20 $ — Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (2) $ — $ — $ — $ — $ — Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period (2) $ (18) $ 2 $ — $ — $ — Balance, January 1, 2019 $ 1,174 $ 38 $ — $ 519 $ 29 Total gains and (losses), realized and unrealized, included in: Net income (loss) as: Net investment income (loss) 4 — — — — Investment gains (losses), net — — — — — Subtotal 4 — — — — Other comprehensive income (loss) 5 3 — 1 — Purchases 273 — — 100 — Sales (120) (2) — (84) — Transfers into Level 3 (1) 14 — — — — Transfers out of Level 3 (1) (104) — — (436) (29) Balance, December 31, 2019 $ 1,246 $ 39 $ — $ 100 $ — Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (2) $ — $ — $ — $ — $ — Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period (2) $ 3 $ 3 $ — $ — $ — ______________ (1) Transfers into/out of the Level 3 classification are reflected at beginning-of-period fair values. (2) For instruments held as of December 31, 2021, December 31, 2020 and December 31, 2019 amounts are included in net investment income or net derivative gains (losses) in the consolidated statements of income (loss) or unrealized gains (losses) on investments in the consolidated statements of comprehensive income. Other Equity Investments (7) 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), reported in net investment income 2 — — — Net derivative gains (losses) (1) — 517 (777) — 2,792 Total realized and unrealized gains (losses) 2 517 (777) — 2,792 Purchases (2) 1 73 44 1 (458) Sales (3) (1) (36) (58) — 77 Settlements — — — — — Other (5) — 5,259 — — — Activity related to consolidated VIEs/VOEs (4) — — — — Transfers into Level 3 (4) — — — — — Transfers out of Level 3 (4) — — — (1) — Balance, December 31, 2021 $ 13 $ 5,813 $ 2,068 $ 1 $ (8,525) Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (6) $ 2 $ 517 $ (777) $ — $ 2,792 Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period (6) $ — $ — $ — $ — $ — Balance, January 1, 2020 $ 16 $ — $ 2,466 $ — $ (8,316) Realized and unrealized gains (losses), included in Net income (loss) as: Investment gains (losses), reported in net investment income — — — — — Net derivative gains (losses) — — 472 — (2,238) Total realized and unrealized gains (losses) — — 472 — (2,238) Purchases (2) 3 — 45 1 (441) Sales (3) — — (79) — 59 Settlements — — — — — Change in estimate — — (45) — — Other Equity Investments (7) Amounts Due from Reinsurers GMIB Reinsurance Contract Asset Separate Accounts Assets GMxB Derivative Features Liability (in millions) Activity related to consolidated VIEs/VOEs (4) — — — — Transfers into Level 3 (4) — — — — — Transfers out of Level 3 (4) — — — — — Balance, December 31, 2020 $ 15 $ — $ 2,859 $ 1 $ (10,936) Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (6) $ — $ — $ 472 $ — $ (2,238) Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period (6) $ — $ — $ — $ — $ — Balance, January 1, 2019 $ 19 $ — $ 1,993 $ 21 $ (5,491) Realized and unrealized gains (losses), included in Net income (loss) as: Investment gains (losses), net — — — — — Net derivative gains (losses) — — 500 — (2,439) Total realized and unrealized gains (losses) — — 500 — (2,439) Purchases — — 45 — (417) Sales — — (72) (1) 31 Settlements — — — (2) — Activity related to consolidated VIEs/VOEs (3) — — — — Transfers into Level 3 — — — — — Transfers out of Level 3 — — — (18) — Balance, December 31, 2019 $ 16 $ — $ 2,466 $ — $ (8,316) Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period $ — $ — $ 500 $ — $ (2,439) Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period $ — $ — $ — $ — $ — ______________ (1) For the years ended December 31, 2021 and 2020, the Company’s non-performance risk impact of $(217) million and $(758) million for the GMxB Derivative Features Liability, $(26) million and $14 million for the GMIB Reinsurance Contract Asset, and $(19) million and $0 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. (6) For instruments held as of December 31, 2021, December 31, 2020 and December 31, 2019, amounts are included in net investment income or net derivative gains (losses) in the consolidated statements of income (loss) or unrealized gains (losses) on investments in the consolidated statements of comprehensive income. (7) Other Equity Investments include other invested assets. 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 December 31, 2021 and December 31, 2020, respectively. Quantitative Information about Level 3 Fair Value Measurements as of December 31, 2021 Fair Valuation Technique Significant Range Weighted Average (2) (in millions) Assets: Investments: Fixed maturities, AFS: Corporate $ 248 Matrix pricing model Spread over Benchmark 20 bps - 270 bps 146 bps 888 Market comparable companies EBITDA multiples Discount Rate Cashflow Multiples Loan to Value 4.9x - 62.3x 6.2% - 21.5% 0.5x - 10.0x 3.1% - 63.4% 13.0x 9.1% 5.5x 30.8% Other equity investments 4 Market comparable companies Revenue multiple 7.8x - 10.3x 9.5x GMIB reinsurance contract asset 2,068 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 0.45% - 20.86% 0.27% - 8.66% 0.04% - 60.44% 57 bps - 93 bps 11% - 31% 0.01% - 0.17% 0.06% - 0.53% 0.31% - 40.00% 2.65% 0.93% 5.27% 60 bps 24% 2.79% (same for all ages) (same for all ages) Amount Due from Reinsurers 5,813 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 0.45% - 20.86% 0.27% - 8.66% 0.04% - 60.44% 37 bps 11% - 31% 0.01% - 0.17% 0.06% - 0.53% 0.31% - 40.00% 1.70% 1.18% 7.20% 37 bps 24% 2.17% (same for all ages) (same for all ages) Liabilities: GMIBNLG 8,503 Discounted cash flow Non-performance risk Lapse Withdrawal Annuitization Mortality (1): Ages 0-40 Ages 41-60 Ages 61-115 111 bps 1.04% - 23.57% 0.27% - 8.66% 0.03% - 100.00% 0.01% - 0.19% 0.07% - 0.57% 0.44% - 43.60% 111 bps 3.55% 1.04% 5.24% 1.62% (same for all ages) (same for all ages) GWBL/GMWB 99 Discounted cash flow Lapse rates Withdrawal Rates Utilization Rates Volatility rates - Equity Non-performance risk 0.60% - 20.86% 0.00% - 8.00% 100% once starting 11% - 31% 111 bps 2.65% 0.93% 24% GIB (75) Discounted cash flow Lapse rates Withdrawal Rates Utilization Rates Volatility rates - Equity Non-performance risk 0.60% - 20.86% 0.13% - 8.66% 0.04% - 100.00% 11% - 31% 111 bps 2.65% 0.93% 5.27% 24% GMAB (3) Discounted cash flow Lapse rates Volatility rates - Equity Non-performance risk 0.60% - 20.86% 11% - 31% 111 bps 2.65% 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 (2) (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 10,7 |
INSURANCE LIABILITIES
INSURANCE LIABILITIES | 12 Months Ended |
Dec. 31, 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 GMIB that are reflected in the consolidated balance sheets in GMIB reinsurance contract asset are, at fair value. Change in Liability for Variable Annuity Contracts with GMDB and GMIB Features and No NLG Feature Year Ended December 31, 2021, 2020 and 2019 GMDB GMIB Direct Ceded Direct Ceded (in millions) Balance, January 1, 2019 $ 4,657 $ (107) $ 3,744 $ (1,993) Paid guarantee benefits (438) 14 (256) 72 Other changes in reserve 556 (6) 1,183 (545) Balance, December 31, 2019 4,775 (99) 4,671 (2,466) Paid guarantee benefits (495) 15 (293) 79 Other changes in reserve 813 — 1,647 (472) Balance, December 31, 2020 5,093 (84) 6,025 (2,859) Paid guarantee benefits (461) 113 (377) 58 Other changes in reserve 379 (90) 304 735 Impact of the Venerable transaction (1) — (2,176) — (2,141) Balance, December 31, 2021 $ 5,011 $ (2,237) $ 5,952 $ (4,207) ____________ (1) Includes the impact as of June 1, 2021 on the ceded reserves to Venerable. See Note 1 of the Notes to these Consolidated Financial Statements for details of 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 of the Notes to these Consolidated Financial Statements. 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 December 31, 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 December 31, 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 $ 16,188 $ 84 $ 51 $ 156 $ 16,479 Separate Accounts 59,603 9,804 3,412 34,486 107,305 Total Account Values $ 75,791 $ 9,888 $ 3,463 $ 34,642 $ 123,784 NAR, gross $ 90 $ 29 $ 1,333 $ 15,732 $ 17,184 NAR, net of amounts reinsured $ 86 $ 26 $ 937 $ 7,948 $ 8,997 Average attained age of policyholders (in years) 51.5 69.1 75.5 71.1 55.6 Percentage of policyholders over age 70 11.7% 51.3% 72.6% 57.5% 20.7% 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 $ 202 $ 218 Separate Accounts — — 26,173 36,833 63,006 Total Account Values $ — $ — $ 26,189 $ 37,035 $ 63,224 NAR, gross $ — $ — $ 632 $ 9,093 $ 9,725 NAR, net of amounts reinsured $ — $ — $ 202 $ 3,708 $ 3,910 Average attained age of policyholders (in years) N/A N/A 65.0 70.8 68.7 Weighted average years remaining until annuitization N/A N/A 6.0 0.6 2.6 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 Notes to these Consolidated Financial Statements. 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 December 31, 2021 2020 Mutual Fund Type GMDB GMIB GMDB GMIB (in millions) Equity $ 52,744 $ 20,009 $ 46,850 $ 18,771 Fixed income 5,384 2,505 5,506 2,701 Balanced 48,152 40,228 47,053 39,439 Other 1,025 264 1,111 275 Total $ 107,305 $ 63,006 $ 100,520 $ 61,186 Hedging Programs for GMDB, GMIB, GIB and Other Features The Company has a program intended to hedge certain risks associated first with the GMDB feature and with the GMIB feature of the Accumulator series of variable annuity products. The program has also been extended to cover other guaranteed benefits as they have been made available. This program utilizes derivative contracts, such as exchange-traded equity, currency and interest rate futures contracts, total return and/or equity swaps, interest rate swap and floor contracts, swaptions, variance swaps as well as equity options, that collectively are managed in an effort to reduce the economic impact of unfavorable changes in guaranteed benefits’ exposures attributable to movements in the capital markets. At the present time, this program hedges certain economic risks on products sold from 2001 forward, to the extent such risks are not externally reinsured. These programs do not qualify for hedge accounting treatment. Therefore, gains (losses) on the derivatives contracts used in these programs, including current period changes in fair value, are recognized in net derivative gains (losses) in the period in which they occur, and may contribute to income (loss) volatility. Variable and Interest-Sensitive Life Insurance Policies - NLG The NLG feature contained in variable and interest-sensitive life insurance policies keeps them in force in situations where the policy value is not sufficient to cover monthly charges then due. The NLG remains in effect so long as the policy meets a contractually specified premium funding test and certain other requirements. The change in the NLG liabilities, reflected in future policy benefits and other policyholders’ liabilities in the consolidated balance sheets, is summarized in the table below. Direct Liability Reinsurance Ceded Net (in millions) Balance, January 1, 2019 $ 788 $ (734) $ 54 Paid guarantee benefits (20) — (20) Other changes in reserves 126 (74) 52 Balance, December 31, 2019 894 (808) 86 Paid guarantee benefits (40) — (40) Other changes in reserves 162 (75) 87 Balance, December 31, 2020 1,016 (883) 133 Paid guarantee benefits (84) — (84) Other changes in reserves 158 (45) 113 Balance at December 31, 2021 $ 1,090 $ (928) $ 162 |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
LEASES | LEASES The Company's operating leases primarily consist of real estate leases for office space. The Company also has operating leases for various types of office furniture and equipment. For certain equipment leases, the Company applies a portfolio approach to effectively account for the RoU operating lease assets and liabilities. For lease agreements for which the lease term or classification was reassessed after the occurrence of a change in the lease terms or a modification of the lease that did not result in a separate contract, the Company elected to combine the lease and related non-lease components for its operating leases; however, the non-lease components associated with the Company’s operating leases are primarily variable in nature and as such are not included in the determination of the RoU operating lease asset and lease liability, but are recognized in the period in which the obligation for those payments is incurred. The Company’s operating leases may include options to extend or terminate the lease, which are not included in the determination of the RoU operating asset or lease liability unless they are reasonably certain to be exercised. The Company's operating leases have remaining lease terms of 1 year to 10 years, some of which include options to extend the leases. The Company typically does not include its renewal options in its lease terms for calculating its RoU operating lease asset and lease liability as the renewal options allow the Company to maintain operational flexibility and the Company is not reasonably certain it will exercise these renewal options until close to the initial end date of the lease. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. As the Company's operating leases do not provide an implicit rate, the Company’s incremental borrowing rate, based on the information available at the lease commencement date, is used in determining the present value of lease payments. The Company primarily subleases floor space within its New Jersey and New York lease properties to various third parties. The lease term for these subleases typically corresponds to the original lease term. Balance Sheet Classification of Operating Lease Assets and Liabilities December 31, Balance Sheet Line Item 2021 2020 (in millions) Assets Operating lease assets Other assets $ 215 $ 272 Liabilities Operating lease liabilities Other liabilities $ 278 $ 350 The table below summarizes the components of lease costs for the years ended December 31, 2021, 2020 and 2019. Lease Costs Year Ended December 31, 2021 2020 2019 (in millions) Operating lease cost $ 73 $ 77 $ 77 Variable operating lease cost 10 11 10 Sublease income (18) (18) (16) Short-term lease expense — — 2 Net lease cost $ 65 $ 70 $ 72 Maturities of lease liabilities as of December 31, 2021 are as follows: Maturities of Lease Liabilities December 31, 2021 (in millions) Operating Leases: 2022 $ 94 2023 83 2024 30 2025 26 2026 22 Thereafter 42 Total lease payments 297 Less: Interest (19) Present value of lease liabilities $ 278 During December 2020, Equitable Financial signed a 15-year lease which is expected to commence in 2023 once certain conditions of the lease are met, relating to approximately 130,000 square feet of space in New York City. In September 2021, Equitable Financial exercised its option to decrease the square footage under the lease by approximately 41,000 square feet,which reduced the square footage to approximately 89,000 square feet. Additionally, during December 2021, Equitable Financial amended its Syracuse office lease. The amendment included extending for an additional 5-year period, commencing January 1, 2024, approximately 143,000 square feet of space in Syracuse, NY. The below table presents the Company’s weighted-average remaining operating lease term and weighted-average discount rate. Weighted Averages - Remaining Operating Lease Term and Discount Rate December 31, 2021 2020 Weighted-average remaining operating lease term 5 years 5 years Weighted-average discount rate for operating leases 2.90 % 3.00 % Supplemental cash flow information related to leases was as follows: Lease Liabilities Information Year Ended December 31, 2021 2020 2019 (in millions) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 94 $ 94 87 Non-cash transactions: Leased assets obtained in exchange for new operating lease liabilities $ 26 $ 20 50 |
REINSURANCE
REINSURANCE | 12 Months Ended |
Dec. 31, 2021 | |
Reinsurance Disclosures [Abstract] | |
REINSURANCE | REINSURANCE The Company assumes and cedes reinsurance with other insurance companies. The Company evaluates the financial condition of its reinsurers to minimize its exposure to significant losses from reinsurer insolvencies. Ceded reinsurance does not relieve the originating insurer of liability. The following table summarizes the effect of reinsurance. The impact of the reinsurance transaction described above results in an increase in reinsurance ceded. Year Ended December 31, 2021 2020 2019 (in millions) Direct premiums $ 762 $ 764 $ 868 Reinsurance assumed 181 195 194 Reinsurance ceded (193) (153) (126) Premiums $ 750 $ 806 $ 936 Direct charges and fee income $ 3,962 $ 2,684 $ 2,721 Reinsurance ceded (571) 780 766 Policy charges and fee income $ 3,391 $ 3,464 $ 3,487 Direct policyholders’ benefits $ 3,553 $ 5,233 $ 4,298 Reinsurance assumed 243 218 217 Reinsurance ceded (814) (500) (427) Policyholders’ benefits $ 2,982 $ 4,951 $ 4,088 Ceded Reinsurance The Company reinsures most of its new variable life , UL and term life policies on an excess of retention basis. The Company generally retains on a per life basis up to $25 million for single lives and $30 million for joint lives with the excess 100% reinsured. The Company also reinsures risk on certain substandard underwriting risks and in certain other cases. On June 1, 2021, Holdings completed the sale of CSLRC to VIAC. Immediately following the closing of the Transaction, CSLRC and Equitable Financial entered into 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. See Note 1 of the Notes to these Consolidated Financial Statements for details of the Venerable Transaction. As of December 31, 2021 and December 31, 2020, the Company had reinsured with non-affiliates in the aggregate approximately 47.6% and 2.6%, respectively, of its current exposure to the GMDB obligation on annuity contracts in-force and, subject to certain maximum amounts or caps in any one period, approximately 59.8% and 13.4% of its current liability exposure, respectively, resulting from the GMIB feature. For additional information, see Note 8 of the Notes to these Consolidated Financial Statements. In addition to the above, the Company cedes substantially all of its group health business to a third-party insurer, cedes a portion of its extended term insurance and paid-up life insurance and substantially all of its individual disability income business through various coinsurance agreements. Assumed Reinsurance In addition to the sale of insurance products, the Company currently acts as a professional retrocessionaire by assuming risk from professional reinsurers. The Company assumes accident, life, health, aviation, special risk and space risks by participating in or reinsuring various reinsurance pools and arrangements. The following table summarizes the ceded reinsurance GMIB reinsurance contracts, third-party recoverables, amount due to reinsurance and assumed reserves.. December 31, 2021 2020 (in millions) Ceded Reinsurance: Estimated net fair values of ceded GMIB reinsurance contracts, considered derivatives (1) $ 2,068 $ 2,859 Estimated net fair values of ceded GMIB NLG ceded reserves to Venerable (2) 5,813 — Third-party reinsurance recoverables related to insurance contracts 12,459 2,245 Top reinsurers: Venerable Insurance and Annuity Company (A- KBRA (IFRS) rating) 10,335 N/A Zurich Life Insurance Company, Ltd. (AA- SAP rating) 1,318 1,421 Ceded group health reserves 40 48 Third-party reinsurance payables related to insurance contracts 127 113 Top reinsurers: Venerable Insurance and Annuity Company 27 N/A Assumed Reinsurance: Reinsurance assumed reserves 758 721 ______________ (1) The estimated fair values increased $(791) million $393 million and $475 million for the years ended December 31, 2021, 2020 and 2019, respectively. (2) Reported in amounts due from reinsurers. See Note 1 of the Notes to these Consolidated Financial Statements for details of the Venerable transaction. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS Parties are considered to be related if one party has the ability to control or exercise significant influence over the other party in making financial or operating decisions. Cost Sharing and General Service Agreements Equitable Financial has a general services agreement with Holdings whereby Equitable Financial will benefit from the services received by Holdings its affiliates. The general services agreement with Holdings replaces existing cost-sharing and general service agreements with various affiliates. Equitable Financial continues to provide services to Holdings and various Affiliates under a separate existing general services agreement with Holdings. Costs allocated to the Company from Holdings totaled $30 million, $41 million and $73 million for the years ended December 31, 2021, 2020 and 2019, respectively, and are allocated based on cost center tracking of expenses. The cost centers are approved annually and are updated based on business area needs throughout the year. Investment Management and Service Fees and Expenses EIMG, a subsidiary of Equitable Financial, provides investment management services to EQAT, EQ Premier VIP Trust, 1290 Funds and other trusts, all of which are considered related parties. Investment management and service fees earned are calculated as a percentage of assets under management and are recorded as revenue as the related services are performed. On June 22, 2021, Holdings completed the formation of Equitable Investment Management, LLC, (“EIM”), a wholly owned indirect subsidiary of Holdings. Effective August 1, 2021, following the formation of EIM, EIMG terminated, and EIM, entered into certain administrative agreements with separate accounts held by the Company. In addition, on October 1, 2021, the Company entered into an investment advisory and management agreement in which EIM became the investment manager for the Company’s general account portfolio. The Company recorded investment management fee expense from EIM of $46 million for the year ended December 31, 2021. AB provides investment management and related services to various funds held by the Company. The Company recorded investment management fee expense from AB of $102 million, $109 million and $102 million for the years ended December 31, 2021, 2020 and 2019, respectively. As of December 31, 2021 and 2020, respectively, the Company held approximately $313 million and $64 million of invested assets in the form of equity interests issued in non-corporate legal entities that were determined by the Company to be VIEs, as further described in Note 2 of the Notes to these Consolidated Financial Statements. These legal entities are related parties of Equitable Financial. The Company reflects these equity interest in the consolidated Balance Sheets as other equity investments. The net assets of these unconsolidated VIEs are approximately $968 million and $623 million as of December 31, 2021 and 2020, respectively. The Company also has approximately $126 million and $90 million of unfunded commitments as of December 31, 2021 and 2020, respectively with these legal entities. Distribution Revenue and Expenses with Affiliates Equitable Distributors receives commissions and fee revenue from Equitable America for sales of its insurance products. The commissions and fees earned from Equitable America are based on the various selling agreements. Equitable Financial pays commissions and fees to Equitable Distribution Holding Corporation and its subsidiaries (“Equitable Distribution”) for sales of insurance products. The commissions and fees paid to Equitable Distribution are based on various selling agreements. Insurance-Related Transactions with Affiliates The reinsurance arrangements with EQ AZ Life Re provide important capital management benefits to Equitable Financial. As of December 31, 2021, the Company’s GMIB reinsurance contract asset with EQ AZ Life Re had carrying values of $220 million and is reported in GMIB contract reinsurance asset, at fair value in the consolidated balance sheets. Ceded premiums and policy fee income in 2021, 2020 and 2019 totaled approximately $48 million, $51 million and $62 million, respectively. Ceded claims paid in 2021, 2020 and 2019 were $93 million, $72 million and $52 million, respectively. Investments in Unconsolidated Equity Interests in Affiliates As of December 31, 2021 and 2020, respectively, the Company held approximately $278 million and $218 million of invested assets in the form of equity interests issued in non-corporate legal entities that were determined by the Company to be VIEs, as further described in Note 2 of the Notes to these Consolidated Financial Statements. These legal entities are related parties of Equitable Financial. The Company reflects these equity interest in the consolidated Balance Sheets as other equity investments. The net assets of these unconsolidated VIEs are approximately $12 billion and $13 billion as of December 31, 2021 and 2020, respectively. The Company also has approximately $157 million and $163 million of unfunded commitments as of December 31, 2021 and 2020, respectively with these legal entities. Loans Issued to Holdings 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.As of December 31, 2021, the amount outstanding was $1.0 billion. In November 2019, Equitable Financial made a $900 million loan to Holdings. The loan has an interest rate of one-month LIBOR plus 1.33%. The loan matures on November 24, 2024. As of December 31, 2021 and 2020, the amount outstanding was $900 million. In April 2018, Equitable Financial made a $800 million loan to Holdings. The loan had an interest rate of 3.69% and a maturity of April 2021. During the years ended December 2020 and 2019 Holdings repaid $300 million, and $300 million in principal, respectively. As of December 31, 2020, the loan was repaid in full with no amount outstanding. Revenues and Expenses Transactions with Equitable Affiliates The table below summarizes the fees received/paid by the Company and the expenses reimbursed to/from the Company in connection with certain services described above for the years ended December 31, 2021, 2020 and 2019. Year Ended December 31, 2021 2020 2019 (in millions) Revenue received or accrued for: Investment management and administrative services provided to EQAT, EQ Premier VIP Trust, 1290 Funds and other trusts $ 757 $ 724 $ 669 Amounts received or accrued for commissions and fees earned for sale of Equitable America’s insurance products 38 38 39 Total $ 795 $ 762 $ 708 Expenses paid or accrued for: Paid or accrued commission and fee expenses for sale of insurance products by Equitable Network $ 712 $ 625 $ 573 Total $ 712 $ 625 $ 573 Contribution to the Equitable Foundation The Equitable Foundation is the philanthropic arm of Equitable Financial. The Company made no funding contributions in 2021 and 2020. For the year 2019, Equitable Financial made a funding contribution to the of $25 million. |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS Equitable Financial sponsors the following employee benefit plans: 401(k) Plan Equitable Financial sponsors the Equitable 401(k) Plan, a qualified defined contribution plan for eligible employees and financial professionals. The plan provides for a company contribution, a company matching contribution and a discretionary profit-sharing contribution. Expenses associated with this 401(k) Plan were $29 million, $19 million and $22 million for the years ended December 31, 2021, 2020 and 2019, respectively. Pension Plan Equitable Financial sponsors the Equitable Retirement Plan (the “ Equitable Financial QP”), a frozen qualified defined benefit pension plan covering its eligible employees and financial professionals. This pension plan is non-contributory, and its benefits are generally based on a cash balance formula and/or, for certain participants, years of service and average earnings over a specified period in the plan. Effective December 31, 2015, primary liability for the obligations of Equitable Financial under the Equitable Financial QP was transferred from Equitable Financial to AXA Financial, and upon the merger of AXA Financial into Holdings, Holdings assumes primary liability under terms of an Assumption Agreement. Equitable Financial remains secondarily liable for its obligations under the Equitable Financial QP and would recognize such liability in the event Holdings does not perform. The Equitable Financial QP is not governed by a collective-bargaining agreement and is not under a financial improvement plan or a rehabilitation plan. For the years ended December 31, 2021, 2020 and 2019, (income)/expenses related to the plan were $(12) million, $9 million and $21 million, respectively. The following table presents the funded status of the plan: December 31, 2021 2020 (in millions) Equitable Retirement Plan Total plan assets $ 2,395 $ 2,341 Accumulated benefit obligation $ 2,045 $ 2,239 Funded status 117.1 % 104.5 % Other Benefit Plans Equitable Financial also sponsors a non-qualified retirement plan, a medical and life retiree plan, a post-employment plan and deferred compensation plan. The expenses related to these plans were $23 million, $32 million and $47 million for the years ended December 31, 2021, 2020 and 2019, respectively. |
SHARE-BASED COMPENSATION PROGRA
SHARE-BASED COMPENSATION PROGRAMS | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
SHARE-BASED COMPENSATION PROGRAMS | SHARE-BASED COMPENSATION PROGRAMS Compensation costs for Years Ended December 31, 2021, 2020 and 2019 for share-based payment arrangements as further described herein are as follows: Year Ended December 31, 2021 2020 2019 (in millions) Performance Shares $ 12 $ 13 $ 10 Stock Options — 5 3 Restricted Stock Unit Awards 27 18 15 Total Compensation Expenses $ 39 $ 36 $ 28 Income Tax Benefit 8 7 10 Since 2018, Holdings has granted equity awards under the Equitable Holdings, Inc. 2018 Omnibus Incentive Plan and the Equitable Holdings, Inc. 2019 Omnibus Incentive Plan (together the “Omnibus Plans”) which were adopted by Holdings on April 25, 2018 and February 28, 2019 respectively. Awards under the Omnibus Plans are linked to Holdings’ common stock. As of December 31, 2021, the common stock reserved and available for issuance under the Omnibus Plans was 22 million shares. Holdings may issue new shares or use common stock held in treasury for awards linked to Holdings’ common stock. Equitable Financial’s Participation in Holdings’ Equity Award Plans Equitable Financial’s employees, financial professionals and directors in 2019 and 2018 were granted equity awards under the Omnibus Plans with the exception of the Holdings restricted stock units (“Holdings RSUs”) granted to financial professionals in 2018. All grants discussed in this section will be settled in shares of Holdings’ common stock except for the RSUs granted to financial professionals in 2019 and 2018 which will be settled in cash. For awards with graded vesting schedules and service-only vesting conditions, including Holdings RSUs and other forms of share-based payment awards, Holdings applies a straight-line expense attribution policy for the recognition of compensation cost. Actual forfeitures with respect to the 2021, 2020 and 2019 grants were considered immaterial in the recognition of compensation cost. Annual Awards Each year, the Compensation Committee of the Holdings’ Board of Directors approves an equity-based award program with awards under the program granted at its regularly scheduled meeting in February. Annual awards under Holdings’ equity programs for 2021, 2020 and 2019 consisted of a mix of equity vehicles including Holdings RSUs, Holdings stock options and Holdings performance shares. If Holdings pays any ordinary dividend in cash, all outstanding Holdings RSUs and performance shares will accrue dividend equivalents in the form of additional Holdings RSUs or performance shares to be settled or forfeited consistent with the terms of the related award. Holdings RSUs Holdings RSUs granted to Equitable Financial employees vest ratably in equal annual installments over a three-year period. The fair value of the awards was measured using the closing price of the Holdings share on the grant date, and the resulting compensation expense will be recognized over the shorter of the vesting term or the period up to the date at which the participant becomes retirement eligible, but not less than one year. Under the 2020 equity program, eligible Equitable Financial financial professionals were granted stock-settled Holdings RSUs which vest ratably in equal annual installments over a three-year period and are equity-classified. The fair value of these awards was measured using the closing price of the Holdings share on the grant date, and the resulting compensation expense will be recognized over the shorter of the vesting term or the period up to the date at which the participant becomes retirement eligible, but not less than one year. Under the 2019 and 2018 equity programs, Equitable Financial financial professionals were granted cash-settled Holdings RSUs which vest ratably in equal installments over a three-year period. The cash payment for each RSU will equal the average closing price for a Holdings share on the NYSE over the 20 trading days immediately preceding the vesting date. These awards are liability-classified and require fair value remeasurement based upon the price of a Holdings share at the close of each reporting period. Holdings Stock Options Holdings stock options granted to Equitable Financial employees have a three-year graded vesting schedule, with one-third vesting on each of the three anniversaries. The total grant date fair value of Holdings stock options will be charged to expense over the shorter of the vesting period or the period up to the date at which the participant becomes retirement eligible, but not less than one year. Holdings Performance Shares Holdings performance shares granted to Equity Financial employees are subject to performance conditions and a three-year cliff-vesting. The performance shares consist of two distinct tranches; one based on Holding’s return-on-equity targets (the “ROE Performance Shares”) and the other based on the Holdings’ relative total shareholder return targets (the “TSR Performance Shares”), each comprising approximately one-half of the award. Participants may receive from 0% to 200% of the unearned performance shares granted. The grant-date fair value of the ROE Performance Shares is established once all of Holdings’ applicable Non-GAAP ROE targets are determined and approved.The fair value of the awards was measured using the closing price of the Holdings share on the grant date. The grant-date fair value of the TSR Performance Shares was measured using a Monte Carlo approach. Under the Monte Carlo approach, stock returns were simulated for Holdings and the selected peer companies to estimate the payout percentages established by the conditions of the award. The aggregate grant-date fair value of the unearned TSR Performance Shares will be recognized as compensation expense over the shorter of the cliff-vesting period or the period up to the date at which the participant becomes retirement eligible, but not less than one year. Director Awards Holdings makes annual grants of unrestricted Holdings shares to non-employee directors of Holdings and Equitable Financial. The fair value of these awards was measured using the closing price of Holdings shares on the grant date. These awards immediately vest and all compensation expense is recognized at the grant date. One-Time Awards Granted in 2018 Transaction Incentive Awards On May 9, 2018, coincident with the IPO, Holdings granted one-time “Transaction Incentive Awards” to executive officers and certain employees in the form of 722 thousand Holdings RSUs. Fifty percent of the Holdings RSUs vested based on service over the two-year period from the IPO date (the “Service Units”), and fifty percent vest based on service or market condition (the “Performance Units”). The market condition is based on share price growth of at least 130% or 150% within a two Prior Equity Award Grants In 2017 and prior years, equity awards for employees, financial professional and directors in our businesses were available under the umbrella of AXA’s global equity program. Accordingly, equity awards granted in 2017 and prior years were linked to AXA’s stock. employees were granted AXA ordinary share options under the Stock Option Plan, AXA performance shares under the Performance Share Plan and financial professionals were granted performance units under the AXA Advisors Performance Unit Plan. The fair values of these prior awards are measured at the grant date by reference to the closing price of the AXA ordinary share, and the result, as adjusted for achievement of performance targets and pre-vesting forfeitures, generally is attributed over the shorter of the requisite service period, the performance period, if any, or to the date at which retirement eligibility is achieved and subsequent service no longer is required for continued vesting of the award. Summary of Stock Option Activity A summary of activity in the AXA and Holdings option plans during 2021 as follows: Options Outstanding EQH Shares AXA Ordinary Shares Number Outstanding (In 000’s) Weighted Average Exercise Price Number Outstanding (In 000’s) Weighted Average Exercise Price Options Outstanding at January 1, 2021 2,819 $ 21.12 1,417 € 20.09 Options granted — 12.26 — — Options exercised (1,005) 20.51 (601) 19.50 Options forfeited, net (150) 21.88 (86) 22.59 Options expired — — — — Options Outstanding at December 31, 2021 1,664 $ 21.66 730 € 22.44 Aggregate intrinsic value (1) $ 5,186 (€ 2,011) Weighted average remaining contractual term (in years) 7.7 4.69 Options Exercisable at December 31, 2021 690 $ — 633 € 22.44 Aggregate intrinsic value (1) $ 2,227 (€ 1,744) Weighted average remaining contractual term (in years) 7.55 4.52 ____________ (1) Aggregate intrinsic value, presented in thousands, is calculated as the excess of the closing market price on December 31, 2021 of the respective underlying shares over the strike prices of the option awards. For awards with strike prices higher than market prices, intrinsic value is shown as zero. A summary of stock option grant assumptions activity in the AXA and Holdings option plans during 2021, 2020, and 2019 follows: EQH Shares (1) 2021 (2) 2020 2019 Dividend yield —% 2.59% 2.77% Expected volatility —% 26.00% 25.70% Risk-free interest rates —% 1.19% 2.49% Expected life in years — 6.0 5.8 Weighted average fair value per option at grant date $ — $ 4.37 $ 3.82 ____________ (1) The expected volatility is based on historical selected peer data, the weighted average expected term is determined by using the simplified method due to lack of sufficient historical data, the expected dividend yield based on Holdings’ expected annualized dividend, and the risk-free interest rate is based on the U.S. Treasury bond yield for the appropriate expected term. (2) No stock options granted during 2021. As of December 31, 2021, approximately $97 thousand of unrecognized compensation cost related to AXA unvested stock option awards is expected to be recognized by the Equitable Financial over a weighted-average period of 0.2 years. Approximately $1 million of unrecognized compensation cost related to Holdings unvested stock option awards is expected to be recognized by the Equitable Financial over a weighted average period of 1.1 years. Summary of Restricted Stock Unit Award Activity The market price of a Holdings share is used as the basis for the fair value measure of a Holdings RSU. For purposes of determining compensation cost for stock-settled Holdings RSUs, fair value is fixed at the grant date until settlement, absent modification to the terms of the award. For liability-classified cash-settled Holdings and AXA RSUs, fair value is remeasured at the end of each reporting period. As of December 31, 2021, approximately 2.4 million Holdings RSUs and AXA ordinary share unit awards remain unvested. Unrecognized compensation cost related to these awards totaled approximately $6 million and is expected to be recognized over a weighted-average period of 1.9 years. The following table summarizes Holdings restricted share units and AXA ordinary share unit activity for 2021. Shares of Holdings Restricted Stock Weighted Average Grant Date Unvested as of January 1, 2021 2,053,036 $ 21.15 Granted 1,557,437 $ 28.08 Forfeited (166,466) $ 24.81 Vested (1,052,916) $ 20.74 Unvested as of December 31, 2021 2,391,091 $ 25.59 Summary of Performance Award Activity As of December 31, 2021, approximately 1.2 million Holdings and AXA performance awards remain unvested. Unrecognized compensation cost related to these awards totaled approximately $15 million and is expected to be recognized over a weighted-average period of 1.5 years. The following table summarizes Holdings and AXA performance awards activity for 2021. Shares of Holdings Performance Awards Weighted-Average Grant Date Shares of AXA Performance Awards Weighted-Average Grant Date Unvested as of January 1, 2021 557,455 $ 22.12 1,017,254 $ 21.28 Granted 938,444 $ 29.89 (460,094) $ 21.28 Forfeited (163,708) $ 28.24 — $ — Vested (141,597) $ 23.17 (504,315) $ 21.28 Unvested as of December 31, 2021 1,190,594 $ 28.54 52,845 $ 21.28 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES A summary of the income tax (expense) benefit in the consolidated statements of income (loss) follows: Year Ended December 31, 2021 2020 2019 (in millions) Income tax (expense) benefit: Current (expense) benefit $ 11 $ (112) $ 295 Deferred (expense) benefit 463 739 284 Total $ 474 $ 627 $ 579 The Federal income taxes attributable to consolidated operations are different from the amounts determined by multiplying the earnings before income taxes and noncontrolling interest by the expected Federal income tax rate of 21% . The sources of the difference and their tax effects are as follows: Year Ended December 31, 2021 2020 2019 (in millions) Expected income tax (expense) benefit $ 393 $ 291 $ 517 Non-taxable investment income 79 91 73 Tax audit interest (14) (8) (14) Tax settlements/uncertain tax position release — 231 — Tax credits 28 21 — Other (12) 1 3 Income tax (expense) benefit $ 474 $ 627 $ 579 During the fourth quarter of 2020, the Company agreed to the Internal Revenue Service’s Revenue Agent’s Report for its consolidated 2010 through 2013 Federal corporate income tax returns. The impact on the Company’s financial statements and unrecognized tax benefits was a tax benefit of $231 million. The components of the net deferred income taxes are as follows: December 31, 2021 2020 Assets Liabilities Assets Liabilities (in millions) Compensation and related benefits $ 46 $ — $ 58 $ — Net operating loss and credits 732 — — — Reserves and reinsurance 2,072 — 1,483 — DAC — 685 — 606 Unrealized investment gains (losses) — 892 — 1,668 Investments — 18 1,071 — Other 31 — — 111 Total $ 2,881 $ 1,595 $ 2,612 $ 2,385 The Company has Federal net operating loss carryforwards of $3.4 billion for the years ending December 31, 2021, which do not expire. A reconciliation of unrecognized tax benefits (excluding interest and penalties) follows: Year Ended December 31, 2021 2020 2019 (in millions) Balance at January 1, $ 281 $ 297 $ 273 Additions for tax positions of prior years 17 229 24 Reductions for tax positions of prior years (3) (250) — Additions for tax positions of current year — — — Settlements with tax authorities — 5 — Balance at December 31, $ 295 $ 281 $ 297 Unrecognized tax benefits that, if recognized, would impact the effective rate $ 43 $ 47 $ 222 The Company recognizes accrued interest and penalties related to unrecognized tax benefits in tax expense. Interest and penalties included in the amounts of unrecognized tax benefits as of December 31, 2021 and 2020 were $47 million and $34 million, respectively. For 2021, 2020 and 2019, respectively, there were $14 million, $(21) million and $14 million in interest expense (benefit) related to unrecognized tax benefits. It is reasonably possible that the total amount of unrecognized tax benefits will change within the next 12 months due to the conclusion of IRS proceedings and the addition of new issues for open tax years. The possible change in the amount of unrecognized tax benefits cannot be estimated at this time. As of December 31, 2021, tax years 2014 and subsequent remain subject to examination by the IRS. |
EQUITY
EQUITY | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
EQUITY | EQUITY AOCI represents cumulative gains (losses) on items that are not reflected in net income (loss). The balances as of December 31, 2021, 2020, and 2019 follow: December 31, 2021 2020 (in millions) Unrealized gains (losses) on investments $ 2,362 $ 4,600 Defined benefit pension plans (5) (5) Accumulated other comprehensive income (loss) attributable to Equitable Financial $ 2,357 $ 4,595 The components of OCI, net of taxes for the years ended December 31, 2021, 2020 and 2019, follow: Year Ended December 31, 2021 2020 2019 (in millions) Change in net unrealized gains (losses) on investments: Net unrealized gains (losses) arising during the period $ (2,293) $ 4,698 $ 3,052 (Gains) losses reclassified into net income (loss) during the period (1) (686) (633) (160) Net unrealized gains (losses) on investments (2,979) 4,065 2,892 Adjustments for policyholders’ liabilities, DAC, insurance liability loss recognition and other 741 (1,066) (797) Change in unrealized gains (losses), net of adjustments (net of deferred income tax expense (benefit) of $(595), $798, and $547) (2,238) 2,999 2,095 Change in defined benefit plans: Reclassification to net income (loss) of amortization of net prior service credit included in net periodic cost — — 2 Change in defined benefit plans, (net of deferred income tax expense (benefit) of $0, $0 and $0 (2)) — — 2 Other comprehensive income (loss), attributable to Equitable Financial $ (2,238) $ 2,999 $ 2,097 ____________ (1) See “Reclassification adjustments” in Note 3 of the Notes to these Consolidated Financial Statements. Reclassification amounts presented net of income tax expense (benefit) of $182 million, $(168) million , and $(42) million for the years ended December 31, 2021, 2020 and 2019, 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. |
COMMITMENTS AND CONTINGENT LIAB
COMMITMENTS AND CONTINGENT LIABILITIES | 12 Months Ended |
Dec. 31, 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 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 December 31, 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 $250 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 and in February 2021, the appellate court reversed the entry of judgement and remanded the case to Connecticut Superior Court. 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. The Company has reached an agreement in principle, subject to agreement on documentation and approval by the SEC, to resolve that investigation, including the allegation that daily separate account and portfolio operating expenses disclosed in customer prospectuses and incorporated in the calculation of net investment portfolio results in quarterly account statements were not properly presented or referenced in those account statements. If approved, under the settlement, the Company would neither admit nor deny the allegations, prospectively modify the relevant account statements and cross-reference the relevant prospectus disclosures, and pay a civil monetary penalty of $50 million, to be distributed to plan participants. The Company has fully accrued for the cost of the settlement. 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 $311 million and pledged collateral with a carrying value of $12.5 billion as of December 31, 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 of the Notes to these Consolidated Financial Statements. The table below summarizes the Company’s activity of funding agreements with the FHLB. Change in FHLB Funding Agreements during the Year Ended December 31, 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 December 31, 2021 (in millions) Short-term funding agreements: Due in one year or less $ 5,634 $ 59,846 $ 60,504 $ 377 $ — $ 5,353 Long-term funding agreements: Due in years two through five 722 411 — (377) 534 1,290 Due in more than five years 534 — — — (534) — Total long-term funding agreements 1,256 411 — (377) — 1,290 Total funding agreements (1) $ 6,890 $ 60,257 $ 60,504 $ — $ — $ 6,643 ____________ (1) The $4 million and $7 million difference between the funding agreements carrying value shown in fair value table for December 31, 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 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 of the Notes to these Consolidated Financial Statements. 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. 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 Year Ended December 31, 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 December 31, 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 3,450 — — — — 4,600 Due in more than five years 800 1,359 — — — (40) 2,119 Total long-term funding agreements 1,950 4,809 — — — (40) 6,719 Total funding agreements (1) $ 1,950 $ 4,809 $ — $ — $ — $ (40) $ 6,719 _____________ (1) The $70 million and $11 million difference between the funding agreements notional value shown and carrying value table as of December 31, 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 December 31, 2021, these arrangements include commitments by the Company to provide equity financing of $1.2 billion 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 December 31, 2021. The Company had $863 million of commitments under existing mortgage loan agreements as of December 31, 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. |
INSURANCE GROUP STATUTORY FINAN
INSURANCE GROUP STATUTORY FINANCIAL INFORMATION | 12 Months Ended |
Dec. 31, 2021 | |
Insurance Group Statutory Financial Information [Abstract] | |
INSURANCE GROUP STATUTORY FINANCIAL INFORMATION | INSURANCE GROUP STATUTORY FINANCIAL INFORMATION For 2021, 2020 and 2019, respectively, Equitable Financial’s statutory net income (loss) totaled $(865) million, $413 million and $3.9 billion. Statutory surplus, Capital stock and AVR totaled $6.5 billion and $6.8 billion as of December 31, 2021 and 2020, respectively. As of December 31, 2021, Equitable Financial, in accordance with various government and state regulations, had $54 million of securities on deposit with such government or state agencies. Equitable Financial did not pay ordinary dividends during 2021 due to operating losses. In 2020 and 2019, Equitable Financial paid to its direct parent, which subsequently distributed such amount to Holdings, an ordinary shareholder dividend of $2.1 billion and $1.0 billion, respectively. Dividend Restrictions As a domestic insurance subsidiary regulated by the insurance laws of New York State, Equitable Financial is subject to restrictions as to the amounts the Company may pay as dividends and amounts the Company may repay of surplus notes to Holdings. State insurance statutes also typically place restrictions and limitations on the amount of dividends or other distributions payable by insurance company subsidiaries to their parent companies, as well as on transactions between an insurer and its affiliates. Under the New York insurance laws, which are applicable to Equitable Financial, a domestic stock life insurer may not, without prior approval of the NYDFS, pay an ordinary dividend to its stockholders exceeding an amount calculated based on a statutory formula (“Ordinary Dividend”). Dividends in excess of this amount require the insurer to file a notice of its intent to declare the dividends with the NYDFS and obtain prior approval or non-disapproval from the NYDFS with respect to such dividends (“Extraordinary Dividend”). Due to a permitted statutory accounting practice agreed to with the NYDFS, Equitable Financial will need the prior approval of the NYDFS to pay the portion, if any, of any Ordinary Dividend that exceeds the Ordinary Dividend that Equitable Financial would be permitted to pay under New York insurance law absent the application of such permitted practice (such excess, the “Permitted Practice Ordinary Dividend”). Applying the formulas above, Equitable Financial could pay an Ordinary Dividend of up to approximately $0.9 billion in 2022. Intercompany Reinsurance The company receives statutory reserve credits for reinsurance treaties with EQ AZ Life Re to the extent EQ AZ Life Re holds assets in an irrevocable trust (the “EQ AZ Life Re Trust”). As of December 31, 2021, EQ AZ Life Re holds $12.4 billion of assets in the EQ AZ Life Re Trust and letters of credit of $1.9 billion that are guaranteed by Holdings. Under the reinsurance transactions, EQ AZ Life Re is permitted to transfer assets from the EQ AZ Life Re Trust under certain circumstances. The level of statutory reserves held by EQ AZ Life Re fluctuate based on market movements, mortality experience and policyholder behavior. Increasing reserve requirements may necessitate that additional assets be placed in trust and/or additional letters of credit be secured, which could adversely impact EQ AZ Life Re’s liquidity. Prescribed and Permitted Accounting Practices As of December 31, 2021, the following three prescribed and permitted practices resulted in net income (loss) and capital and surplus that is different from the statutory surplus that would have been reported had NAIC statutory accounting practices been applied. 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. The permitted practice was amended to also permit Equitable Financial to adopt SSAP 108 prospectively as of July 1, 2021. 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 $1.4 billion in statutory special surplus funds and an increase of $1.4 billion in statutory net income as of December 31, 2021 and for the twelve-month period then ended, which will be amortized over 5 years for each of the retrospective and prospective components. 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. The NYDFS recognizes only SAP for determining and reporting the financial condition and results of operations of an insurance company, in order to determine its solvency under the New York State Insurance Laws. The National Association of Insurance Commissioners’ (“NAIC”) Accounting Practices and Procedures manual (“NAIC SAP”) has been adopted as a component of prescribed or permitted practices by the State of New York. However, New York Regulation 213 (“Reg 213”), adopted in May of 2019 and as amended in February 2020 and March 2021, differs from the NAIC variable annuity reserve and capital framework. Reg 213 requires the Company to carry statutory basis reserves for its variable annuity contract obligations equal to the greater of those required under (i) the NAIC standard or (ii) a revised version of the NYDFS requirement in effect prior to the adoption of the first amendment for contracts issued prior to January 1, 2020, and for policies issued after that date a new standard that in current market conditions imposes more conservative reserving requirements for variable annuity contracts than the NAIC standard. NYDFS allows domicile companies a five year phase-in provision for Reg 213 reserves. As of December 31, 2021, Reg 213 reserves are phased in at 60%. The impact of the application of Reg 213 was a decrease of approximately $1.2 billion in statutory surplus and no impact in statutory net income as of December 31, 2021 and for the twelve-month period then ended. The Company received approval from NYDFS for its proposed amended Plan of Operation for Separate Account No. 68 (“SA 68”) for our Structured Capital Strategies product and Separate Account No. 69 (“SA 69”) for our Equi-Vest product Structured Investment Option, to change the accounting basis of the two Separate Accounts from fair value to book value in accordance with Section 1414 of the Insurance Law. In order to facilitate this change and comply with Section 4240(a)(10), the Company also sought approval to amend the Plans to remove the requirement to comply with Section 4240(a)(5)(iii) and substitute it with a commitment to comply with Section 4240(a)(5)(i). Similarly, the Company updated the reserves section of each Plan to reflect the fact that Regulation 128 would no longer be applicable upon the change in accounting basis. The impact of the application was a decrease of approximately $513 million in statutory surplus and no impact in statutory net income as of December 31, 2021 and for the twelve-month period then ended. As of December 31, 2020 and for the year then ended, there were no differences in net income (loss) and capital and surplus resulting from practices prescribed and permitted by NYDFS and those prescribed by NAIC Accounting Practices and Procedures effective as of December 31, 2020. The Company cedes a portion of their statutory reserves to EQ AZ Life Re, a captive reinsurer, as part of the Company’s capital management strategy. EQ AZ Life Re prepares financial statements in a special purpose framework for statutory reporting. Differences between Statutory Accounting Principles and U.S. GAAP Accounting practices used to prepare statutory financial statements for regulatory filings of stock life insurance companies differ in certain instances from U.S. GAAP. The differences between statutory surplus and capital stock determined in accordance with SAP and total equity under U.S. GAAP are primarily: (a) the inclusion in SAP of an AVR intended to stabilize surplus from fluctuations in the value of the investment portfolio; (b) future policy benefits and policyholders’ account balances under SAP differ from U.S. GAAP due to differences between actuarial assumptions and reserving methodologies; (c) certain policy acquisition costs are expensed under SAP but deferred under U.S. GAAP and amortized over future periods to achieve a matching of revenues and expenses; (d) under SAP, Federal income taxes are provided on the basis of amounts currently payable with limited recognition of deferred tax assets while under U.S. GAAP, deferred taxes are recorded for temporary differences between the financial statements |
REDEEMABLE NONCONTROLLING INTER
REDEEMABLE NONCONTROLLING INTEREST | 12 Months Ended |
Dec. 31, 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: Year Ended December 31, 2021 2020 2019 (in millions) Balance, beginning of period $ 41 $ 39 $ 39 Net earnings (loss) attributable to redeemable noncontrolling interests $ — $ 1 $ 5 Purchase/change of redeemable noncontrolling interests $ (13) $ 1 $ (5) Balance, end of period $ 28 $ 41 $ 39 |
REVENUES FROM EXTERNAL CUSTOMER
REVENUES FROM EXTERNAL CUSTOMERS | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
REVENUES FROM EXTERNAL CUSTOMERS | REVENUES FROM EXTERNAL CUSTOMERSRevenue from external customers, by product, is shown in the table that follows: Year Ended December 31, 2021 2020 2019 (in millions) Individual Variable Annuity Products Premiums $ 126 $ 165 $ 179 Fees (1) 2,364 2,555 2,615 Others 72 8 16 Total $ 2,562 $ 2,728 $ 2,810 Employer- Sponsored Premiums $ — $ — $ — Fees 611 500 477 Others 5 4 4 Total $ 616 $ 504 $ 481 Life Insurance Products Premiums $ 566 $ 587 $ 702 Fees 1,417 1,421 1,440 Others 7 23 21 Total $ 1,990 $ 2,031 $ 2,163 Employee Benefit Products Premiums $ 40 $ 36 $ 35 Fees — — — Others — 15 13 Total $ 40 $ 51 $ 48 Other Premiums $ 18 $ 18 $ 20 Fees 16 13 12 Others 10 7 2 Total $ 44 $ 38 $ 34 ______________ (1) Excludes the amortization/capitalization of unearned revenue liability of $(13) million, $(14) million and $(35) million for the years ended December 31, 2021, 2020 and 2019 , respectively. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS OPEN |
SCHEDULE I - SUMMARY OF INVESTM
SCHEDULE I - SUMMARY OF INVESTMENTS - OTHER THAN INVESTMENTS IN RELATED PARTIES | 12 Months Ended |
Dec. 31, 2021 | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Abstract] | |
Schedule I - Summary of Investments - Other than Investments in Related Parties | SCHEDULE I SUMMARY OF INVESTMENTS—OTHER THAN INVESTMENTS IN RELATED PARTIES AS OF DECEMBER 31, 2021 Cost (1) Fair Value Carrying Value (in millions) Fixed maturities, AFS: U.S. government, agencies and authorities $ 13,032 $ 15,214 $ 15,214 State, municipalities and political subdivisions 527 597 597 Foreign governments 1,124 1,152 1,152 Public utilities 5,965 6,260 6,260 All other corporate bonds 39,613 41,464 41,464 Residential mortgage-backed 82 90 90 Asset-backed 5,904 5,905 5,905 Commercial mortgage-backed 2,348 2,341 2,341 Redeemable preferred stocks 41 53 53 Total fixed maturities, AFS 68,636 73,076 73,076 Mortgage loans on real estate (2) 14,078 14,291 14,016 Policy loans 3,540 4,512 3,540 Other equity investments 2,538 2,759 2,759 Trading securities 340 379 379 Other invested assets 2,910 2,910 2,910 Total Investments $ 92,042 $ 97,927 $ 96,680 ______________ (1) Cost for fixed maturities represents original cost, reduced by repayments and write-downs and adjusted for amortization of premiums or accretion of discount; cost for equity securities represents original cost reduced by write-downs; cost for other limited partnership interests represents original cost adjusted for equity in earnings and reduced by distributions. (2) Carrying value for mortgage loans on real estate represents original cost adjusted for amortization of premiums or accretion of discount and reduced by credit loss allowance. |
SCHEDULE IV - REINSURANCE
SCHEDULE IV - REINSURANCE | 12 Months Ended |
Dec. 31, 2021 | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Abstract] | |
Schedule IV - Reinsurance | SCHEDULE IV REINSURANCE (1) AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2021, 2020 AND 2019 Gross Amount Ceded to Other Companies Assumed from Other Companies Net Amount Percentage of Amount Assumed to Net (in millions) 2021 Life insurance in-force $ 388,520 $ 164,781 $ 31,971 $ 255,710 12.5 % Premiums: Life insurance and annuities $ 709 $ 170 $ 173 $ 712 24.3 % Accident and health 53 23 8 38 21.1 % Total premiums $ 762 $ 193 $ 181 $ 750 24.1 % 2020 Life insurance in-force $ 389,576 $ 72,110 $ 32,289 $ 349,755 9.2 % Premiums: Life insurance and annuities $ 712 $ 127 $ 186 $ 771 24.1 % Accident and health 52 26 9 35 24.8 % Total premiums $ 764 $ 153 $ 195 $ 806 24.1 % 2019 Life insurance in-force $ 392,420 $ 66,770 $ 31,699 $ 357,349 8.9 % Premiums: Life insurance and annuities $ 825 $ 99 $ 185 $ 911 20.3 % Accident and health 43 27 9 25 36.0 % Total premiums $ 868 $ 126 $ 194 $ 936 20.7 % ______________ (1) Includes amounts related to the discontinued group life and health business. |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The preparation of the accompanying consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions (including normal, recurring accruals) that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from these estimates. The accompanying 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 VIEs that meet the requirements for consolidation. Financial results in the historical consolidated financial statements may not be indicative of the results of operations, comprehensive income (loss), financial position, equity or cash flows that would have been achieved had we operated as a separate, standalone entity during the reporting periods presented. We believe that the consolidated financial statements include all adjustments necessary for a fair presentation of the results of operations of the Company. All significant intercompany transactions and balances have been eliminated in consolidation. The years “2021”, “2020” and “2019” refer to the years ended December 31, 2021, 2020 and 2019, respectively. |
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 was 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. The ASU also prescribes the discount rate to be used in measuring the liability for future policy benefits for traditional and limited payment long-duration contracts. 2. Measurement of MRBs. MRBs, as defined under the ASU, will encompass certain GMxB features associated with variable annuity products and other general account annuities with other than nominal market risk. 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. 4. Expanded footnote disclosures. The ASU requires additional disclosures including information about significant inputs, judgements, assumptions and methods used in measurement 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 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. For MRBs, the ASU should be applied retrospectively as of the beginning of the earliest period presented. The Company continues to progress with implementation efforts and the evaluation of the impact that adoption of this guidance will have on the Company’s consolidated financial statements. Due to its extensive nature, the adoption of the ASU is expected to have a significant impact on the Company’s consolidated financial statements, as well as systems, processes and controls. Effective January 1, 2023, the new guidance will be adopted using the modified retrospective approach, except for MRBs which will use the full retrospective approach. The Company has created a governance framework and implementation plan to ensure timely adoption of the guidance. In preparation for implementation, the Company continues to refine key accounting policy decisions, modernize processes and update internal controls. These changes include modifications of actuarial valuation systems, data sourcing, analytical procedures and reporting processes. The impact on total equity of applying this ASU is estimated to be less than the current amount of reported AOCI as of December 31, 2021. The majority of the total equity impact as of December 31, 2021 is expected to be reflected in AOCI due to decreases in the Company’s estimate of its non-performance risk on variable annuity guarantees accounted for as MRBs for the first time under the guidance. The estimated impact to the retained earnings element of total equity as of December 31, 2021, due to accounting for variable annuity guarantees as MRBs that are not currently measured at fair value, is mitigated by the Company’s present use of a near industry low interest rate assumption of 2.25% on GMIB business. Because movements in equity markets, interest rates and credit spreads are unpredictable and at times volatile, it is possible that the estimated effects of adoption could change materially between December 31, 2021 and January 1, 2023. 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. On December 15, 2021, the FASB tentatively approved deferring the sunset date of the guidance in Topic 848 to December 31, 2024. 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, and 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. Policy loans represent funds loaned to policyholders up to the cash surrender value of the associated insurance policies and are carried at the unpaid principal balances due to the Company from the policyholders. Interest income on policy loans is recognized in net investment income at the contract interest rate when earned. Policy loans are fully collateralized by the cash surrender value of the associated insurance policies. Partnerships, investment companies and joint venture interests that the Company has control of and has an economic interest in or those that meet the requirements for consolidation under accounting guidance for consolidation of VIEs are consolidated. Those that the Company does not have control of and does not have a majority economic interest in and those that do not meet the VIE requirements for consolidation are reported on the equity method of accounting and are reported in other equity investments. The Company records its interests in certain of these partnerships on a month or one quarter lag. Trading securities, which include equity securities and fixed maturities, are carried at fair value based on quoted market prices, with realized and unrealized gains (losses) reported in net investment income (loss) in the consolidated statements of income (loss). 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 December 31, 2021 and 2020, the carrying value of COLI was $1.0 billion and $989 million, respectively, and is reported in other invested assets in the consolidated balance sheets. Cash and cash equivalents includes cash on hand, demand deposits, money market accounts, overnight commercial paper and highly liquid debt instruments purchased with an original maturity of three months or less. Due to the short-term nature of these investments, the recorded value is deemed to approximate fair value. |
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 therefore 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 met, 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. |
Mortgage Loans on Real Estate | Mortgage Loans on Real Estate Mortgage loans are stated at unpaid principal balances, net of unamortized discounts and the allowance for credit losses. The Company calculates the allowance for credit losses in accordance with the CECL model in order to provide for the risk of credit losses in the lending process. Expected credit losses for loans with similar risk characteristics are estimated on a collective (i.e., pool) basis in order to meet CECL’s risk of loss concept which requires the Company to consider possibilities of loss, even if remote. For collectively evaluated mortgages, the Company estimates the allowance for credit losses based on the amortized cost basis of its mortgages over their expected life using a PD / LGD model. The PD/LGD model incorporates the Company’s reasonable and supportable forecast of macroeconomic information over a specified period. The length of the reasonable and supportable forecast period is reassessed on a quarterly basis and may be adjusted as appropriate over time to be consistent with macroeconomic conditions and the environment as of the reporting date. For periods beyond the reasonable and supportable forecast period, the model reverts to historical loss information. The PD and LGD are estimated at the loan-level based on loans’ current and forecasted risk characteristics as well as macroeconomic forecasts. The PD is estimated using both macroeconomic conditions as well as individual loan risk characteristics including LTV ratios, DSC ratios, seasoning, collateral type, geography, and underlying credit. The LGD is driven primarily by the type and value of collateral, and secondarily by expected liquidation costs and time to recovery. For individually evaluated mortgages, the Company continues to recognize a valuation allowance on the present value of expected future cash flows discounted at the loan’s original effective interest rate or on its collateral value. The CECL model is configured to the Company’s specifications and takes into consideration the detailed risk attributes of each discrete loan in the mortgage portfolio which include, but are not limited to the following: • LTV ratio - Derived from current loan balance divided by the fair market value of the property. An LTV ratio in excess of 100% indicates an underwater mortgage. • DSC ratio - Derived from actual operating earnings divided by annual debt service. If the ratio is below 1.0x, then the income from the property does not support the debt. • Occupancy - Criteria varies by property type but low or below market occupancy is an indicator of sub-par property performance. • Lease expirations - The percentage of leases expiring in the upcoming 12 to 36 months are monitored as a decline in rent and/or occupancy may negatively impact the debt service coverage ratio. In the case of single-tenant properties or properties with large tenant exposure, the lease expiration is a material risk factor. • Other - Any other factors such as maturity, borrower/tenant related issues, payment status, property condition, or current economic conditions may call into question the performance of the loan. Mortgage loans that do not share similar risk characteristics with other loans in the portfolio are individually evaluated quarterly by the Company’s IUS Committee. The allowance for credit losses on these individually evaluated mortgages is a loan-specific reserve as a result of the loan review process that is recorded based on the present value of expected future cash flows discounted at the loan’s effective interest rate or based on the fair value of the collateral. The individually assessed allowance for mortgage loans can increase or decrease from period to period based on such factors. Individually assessed loans may include, but are not limited to, mortgages that have deteriorated in credit quality such as a TDR and reasonably expected TDRs, mortgages for which foreclosure is probable, and mortgages which have been classified as “potential problem” or “problem” loans within the Company’s IUS Committee processes as described below. Within the IUS process, commercial mortgages 60 days or more past due and agricultural mortgages 90 days or more past due, as well as all mortgages in the process of foreclosure, are identified as problem mortgage loans. Based on its monthly monitoring of mortgages, a class of potential problem mortgage loans are also identified, consisting of mortgage loans not currently classified as problem mortgage loans but for which management has doubts as to the ability of the borrower to comply with the present loan payment terms and which may result in the loan becoming a problem or being modified. The decision whether to classify a performing mortgage loan as a potential problem involves judgments by management as to likely future industry conditions and developments with respect to the borrower or the individual mortgaged property. Individually assessed mortgage loans without provision for losses are mortgage loans where the fair value of the collateral or the net present value of the expected future cash flows related to the loan equals or exceeds the recorded investment. Interest income earned on mortgage loans where the collateral value is used to measure impairment is recorded on a cash basis. Interest income on mortgage loans where the present value method is used to measure impairment is accrued on the net carrying value amount of the loan at the interest rate used to discount the cash flows. Mortgage loans are placed on nonaccrual status once management believes the collection of accrued interest is not probable. Once mortgage loans are classified as nonaccrual mortgage loans, interest income is recognized under the cash basis of accounting and the resumption of the interest accrual would commence only after all past due interest has been collected or the mortgage loan has been restructured to where the collection of interest is considered likely. The Company charges off loan balances and accrued interest that are deemed uncollectible. The components of amortized cost for mortgage loans on the consolidated balance sheets excludes accrued interest amounts because the Company presents accrued interest receivables within other assets. Once mortgage loans are placed on nonaccrual status, the Company reverses accrued interest receivable against interest income. Since the nonaccrual policy results in the timely reversal of accrued interest receivable, the Company does not record an allowance for credit losses on accrued interest receivable. |
Troubled Debt Restructuring | Troubled Debt Restructuring The Company invests in commercial and agricultural mortgage loans included in the balance sheet as mortgage loans on real estate and privately negotiated fixed maturities included in the balance sheet as fixed maturities AFS. Under certain circumstances, modifications are granted to these contracts. Each modification is evaluated as to whether a |
Net Investment Income (Loss), Investment Gains (Losses), Net, and Unrealized Investment Gains (Losses) | Net Investment Income (Loss), Investment Gains (Losses) Net, and Unrealized Investment Gains (Losses) Realized investment gains (losses) are determined by identification with the specific asset and are presented as a component of revenue. Changes in the allowance for credit losses are included in investment gains (losses), net. Realized and unrealized holding gains (losses) on trading and equity securities are reflected in net investment income (loss). Unrealized investment gains (losses) on fixed maturities designated as AFS held by the Company are accounted for as a separate component of AOCI, net of related deferred income taxes, as are amounts attributable to certain pension operations, Closed Block’s policyholders’ dividend obligation, insurance liability loss recognition, DAC related to UL policies, investment-type products and participating traditional life policies. Changes in unrealized gains (losses) reflect changes in fair value of only those fixed maturities classified as AFS and do not reflect any change in fair value of policyholders’ account balances and future policy benefits. |
Fair Value of Financial Instruments | Fair Value of Financial InstrumentsSee Note 7 of the Notes to these Consolidated Financial Statements for additional information regarding determining the fair value of financial instruments. |
Recognition of Insurance Income and Related Expenses | Recognition of Insurance Income and Related Expenses Deposits related to UL and investment-type contracts are reported as deposits to policyholders’ account balances. Revenues from these contracts consist of fees assessed during the period against policyholders’ account balances for mortality charges, policy administration charges and surrender charges. Policy benefits and claims that are charged to expense include benefit claims incurred in the period in excess of related policyholders’ account balances. Premiums from participating and non-participating traditional life and annuity policies with life contingencies generally are recognized in income when due. Benefits and expenses are matched with such income so as to result in the recognition of profits over the life of the contracts. This match is accomplished by means of the provision for liabilities for future policy benefits and the deferral and subsequent amortization of DAC. For contracts with a single premium or a limited number of premium payments due over a significantly shorter period than the total period over which benefits are provided, premiums are recorded as revenue when due with any excess profit deferred and recognized in income in a constant relationship to insurance in-force or, for annuities, the amount of expected future benefit payments. Premiums from individual health contracts are recognized as income over the period to which the premiums relate in proportion to the amount of insurance protection provided. |
DAC | DAC Acquisition costs that vary with and are primarily related to the acquisition of new and renewal insurance business, reflecting incremental direct costs of contract acquisition with independent third parties or employees that are essential to the contract transaction, as well as the portion of employee compensation, including payroll fringe benefits and other costs directly related to underwriting, policy issuance and processing, medical inspection, and contract selling for successfully negotiated contracts including commissions, underwriting, agency and policy issue expenses, are deferred. In each reporting period, DAC amortization, net of the accrual of imputed interest on DAC balances, is recorded to amortization of deferred policy acquisition costs. DAC is subject to recoverability testing at the time of policy issue and loss recognition testing at the end of each accounting period. The determination of DAC, including amortization and recoverability estimates, is based on models that involve numerous assumptions and subjective judgments, including those regarding policyholder behavior, surrender and withdrawal rates, mortality experience, and other inputs including financial market volatility and market rates of return. After the initial establishment of reserves, premium deficiency and loss recognition tests are performed each period end using best estimate assumptions as of the testing date without provisions for adverse deviation. When the liabilities for future policy benefits plus the present value of expected future gross premiums for the aggregate product group are insufficient to provide for expected future policy benefits and expenses for that line of business (i.e., reserves net of any DAC asset), DAC would first be written off and thereafter, if required, a premium deficiency reserve would be established by a charge to earnings. Amortization Policy In accordance with the guidance for the accounting and reporting by insurance enterprises for certain long-duration contracts and participating contracts and for realized gains and losses from the sale of investments, current and expected future profit margins for products covered by this guidance are examined regularly in determining the amortization of DAC. DAC associated with certain variable annuity products is amortized based on estimated assessments, with DAC on the remainder of variable annuities, UL and investment-type products amortized over the expected total life of the contract group as a constant percentage of estimated gross profits arising principally from investment results, Separate Accounts fees, mortality and expense margins and surrender charges based on historical and anticipated future experience, embedded derivatives and changes in the reserve of products that have indexed features such as SCS IUL and MSO, updated at the end of each accounting period. When estimated gross profits are expected to be negative for multiple years of a contract life, DAC is amortized using the present value of estimated assessments. The effect on the amortization of DAC of revisions to estimated gross profits or assessments is reflected in earnings (loss) in the period such estimated gross profits or assessments are revised. A decrease in expected gross profits or assessments would accelerate DAC amortization. Conversely, an increase in expected gross profits or assessments would slow DAC amortization. The effect on the DAC assets that would result from realization of unrealized gains (losses) is recognized with an offset to AOCI in consolidated equity as of the balance sheet date. A significant assumption in the amortization of DAC on variable annuities and, to a lesser extent, on variable and interest-sensitive life insurance relates to projected future separate account performance. Management sets estimated future gross profit or assessment assumptions related to separate account performance using a long-term view of expected average market returns by applying a RTM approach, a commonly used industry practice. This future return approach influences the projection of fees earned, as well as other sources of estimated gross profits. Returns that are higher than expectations for a given period produce higher than expected account balances, increase the fees earned resulting in higher expected future gross profits and lower DAC amortization for the period. The opposite occurs when returns are lower than expected. In applying this approach to develop estimates of future returns, it is assumed that the market will return to an average gross long-term return estimate, developed with reference to historical long-term equity market performance. Management has set limitations as to maximum and minimum future rate of return assumptions, as well as a limitation on the duration of use of these maximum or minimum rates of return. As of December 31, 2021, the average gross short-term and long-term annual return estimate on variable and interest-sensitive life insurance and variable annuities was 7.0% (4.7% net of product weighted average Separate Accounts fees), and the gross maximum and minimum short-term annual rate of return limitations were 15.0% (12.7% net of product weighted average Separate Accounts fees) and 0.0% (2.3% net of product weighted average Separate Accounts fees), respectively. The maximum duration over which these rate limitations may be applied is five years. This approach will continue to be applied in future periods. These assumptions of long-term growth are subject to assessment of the reasonableness of resulting estimates of future return assumptions. In addition, projections of future mortality assumptions related to variable and interest-sensitive life products are based on a long-term average of actual experience. This assumption is updated periodically to reflect recent experience as it emerges. Improvement of life mortality in future periods from that currently projected would result in future deceleration of DAC amortization. Conversely, deterioration of life mortality in future periods from that currently projected would result in future acceleration of DAC amortization. Other significant assumptions underlying gross profit estimates for UL and investment type products relate to contract persistency and General Account investment spread. For participating traditional life policies (substantially all of which are in the Closed Block), DAC is amortized over the expected total life of the contract group as a constant percentage based on the present value of the estimated gross margin amounts expected to be realized over the life of the contracts using the expected investment yield. As of December 31, 2021, the average rate of assumed investment yields, excluding policy loans, for the Company was 4.5% grading to 4.3% in 2026. Estimated gross margins include anticipated premiums and investment results less claims and administrative expenses, changes in the net level premium reserve and expected annual policyholder dividends. The effect on the accumulated amortization of DAC of revisions to estimated gross margins is reflected in earnings in the period such estimated gross margins are revised. The effect on the DAC assets that would result from realization of unrealized gains (losses) is recognized with an offset to AOCI in consolidated equity as of the balance sheet date. Many of the factors that affect gross margins are included in the determination of the Company’s dividends to these policyholders. DAC adjustments related to participating traditional life policies do not create significant volatility in results of operations as the Closed Block recognizes a cumulative policyholder dividend obligation expense in policyholders’ benefits for the excess of actual cumulative earnings over expected cumulative earnings as determined at the time of demutualization. DAC associated with non-participating traditional life policies are amortized in proportion to anticipated premiums. Assumptions as to anticipated premiums are estimated at the date of policy issue and are consistently applied during the life of the contracts. Deviations from estimated experience are reflected in income (loss) in the period such deviations occur. For these contracts, the amortization periods generally are for the total life of the policy. DAC related to these policies are subject to recoverability testing as part of the Company’s premium deficiency testing. If a premium deficiency exists, DAC are reduced by the amount of the deficiency or to zero through a charge to current period earnings (loss). If the deficiency exceeds the DAC balance, the reserve for future policy benefits is increased by the excess, reflected in earnings (loss) in the period such deficiency occurs. For some products, policyholders can elect to modify product benefits, features, rights or coverages that occur by the exchange of a contract for a new contract, or by amendment, endorsement, or rider to a contract, or by election or coverage within a contract. These transactions are known as internal replacements. If such modification substantially changes the contract, the associated DAC is written off immediately through income and any new deferrable costs associated with the replacement contract are deferred. If the modification does not substantially change the contract, the DAC amortization on the original contract will continue and any acquisition costs associated with the related modification are expensed. |
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 offset 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. |
Policyholder Bonus Interest Credits | Policyholder Bonus Interest Credits Policyholder bonus interest credits are offered on certain deferred annuity products in the form of either immediate bonus interest credited or enhanced interest crediting rates for a period of time. The interest crediting expense associated with these policyholder bonus interest credits is deferred and amortized over the lives of the underlying contracts in a manner consistent with the amortization of DAC. Unamortized balances are included in other assets in the consolidated balance sheets and amortization is included in interest credited to policyholders’ account balances in the consolidated statements of income (loss). |
Policyholders' Account Balances and Future Policy Benefits | Policyholders’ Account Balances and Future Policy Benefits Policyholders’ account balances relate to contracts or contract features where the Company has no significant insurance risk. This liability represents the contract value that has accrued to the benefit of the policyholder as of the balance sheet date. For participating traditional life insurance policies, future policy benefit liabilities are calculated using a net level premium method on the basis of actuarial insurance assumptions equal to guaranteed mortality and dividend fund interest rates. The liability for annual dividends represents the accrual of annual dividends earned. Terminal dividends are accrued in proportion to gross margins over the life of the contract. For non-participating traditional life insurance policies, future policy benefit liabilities are estimated using a net level premium method on the basis of actuarial assumptions as to mortality, persistency and interest established at policy issue. Assumptions established at policy issue as to mortality and persistency are based on the Company’s experience that, together with interest and expense assumptions, includes a margin for adverse deviation. Benefit liabilities for traditional annuities during the accumulation period are equal to accumulated policyholders’ fund balances and, after annuitization, are equal to the present value of expected future payments. Interest rates used in establishing such liabilities range from 3.5% to 6.3% (weighted average of 5.0%) for approximately 99.4% of life insurance liabilities and from 1.5% to 5.4% (weighted average of 3.5%) for annuity liabilities. Individual health benefit liabilities for active lives are estimated using the net level premium method and assumptions as to future morbidity, withdrawals and interest. Benefit liabilities for disabled lives are estimated using the present value of benefits method and experience assumptions as to claim terminations, expenses and interest. While management believes its DI reserves have been calculated on a reasonable basis and are adequate, there can be no assurance reserves will be sufficient to provide for future liabilities. Obligations arising from funding agreements are also reported in policyholders’ account balances in the consolidated balance sheets. As a member of the FHLB, the Company has access to collateralized borrowings. The Company may also issue funding agreements to the FHLB. Both the collateralized borrowings and funding agreements would require the Company to pledge qualified mortgage-backed assets and/or government securities as collateral. The Company has issued and continues to offer certain variable annuity products with GMDB and/or contain a GMLB (collectively, the “GMxB features”) which, if elected by the policyholder after a stipulated waiting period from contract issuance, guarantees a minimum lifetime annuity based on predetermined annuity purchase rates that may be in excess of what the contract account value can purchase at then-current annuity purchase rates. This minimum lifetime annuity is based on predetermined annuity purchase rates applied to a GMIB base. The Company previously issued certain variable annuity products with GIB, GWBL, GMWB and GMAB features. The Company has also assumed reinsurance for products with GMxB features. Reserves for products that have GMIB features, but do not have no-lapse guarantee features, and products with GMDB features are determined by estimating the expected value of death or income benefits in excess of the projected contract accumulation value and recognizing the excess over the estimated life based on expected assessments (i.e., benefit ratio). The liability equals the current benefit ratio multiplied by cumulative assessments recognized to date, plus interest, less cumulative excess payments to date. These reserves are recorded within future policy benefits and other policyholders’ liabilities. The determination of this estimated liability is based on models that involve numerous assumptions and subjective judgments, including those regarding expected market rates of return and volatility, contract surrender and withdrawal rates, mortality experience, and, for contracts with the GMIB feature, GMIB election rates. Assumptions regarding separate account performance used for purposes of this calculation are set using a long-term view of expected average market returns by applying a RTM approach, consistent with that used for DAC amortization. There can be no assurance that actual experience will be consistent with management’s estimates. Products that have a GMIBNLG rider, GIB, GWBL, GMWB and GMAB features and the assumed products with GMIB features (collectively “GMxB derivative features”) are considered either freestanding or embedded derivatives and discussed below under (“Embedded and Freestanding Insurance Derivatives”). |
Policyholders' Dividend | Policyholders’ Dividends The amount of policyholders’ dividends to be paid (including dividends on policies included in the Closed Block) is determined annually by the board of directors of the issuing insurance company. The aggregate amount of policyholders’ dividends is related to actual interest, mortality, morbidity and expense experience for the year and judgment as to the appropriate level of statutory surplus to be retained by the Company. |
Embedded and Freestanding Insurance Derivatives | Embedded and Freestanding Insurance Derivatives Reserves for products or features within products that are considered either embedded or freestanding derivatives are measured at estimated fair value separately from the host variable annuity product, with changes in estimated fair value reported in net derivative gains (losses). The estimated fair values of these derivatives are determined based on the present value of projected future benefits minus the present value of projected future fees attributable to the guarantee. The projections of future benefits and future fees require capital markets and actuarial assumptions, including expectations concerning policyholder behavior. A risk-neutral valuation methodology is used under which the cash flows from the guarantees are projected under multiple capital market scenarios using observable risk-free rates. Additionally, the Company cedes and assumes reinsurance of products with GMxB features, which are considered either an embedded or freestanding derivative and measured at fair value. The GMxB reinsurance contract asset and liabilities’ fair values reflect the present value of reinsurance premiums, net of recoveries, and risk margins over a range of market-consistent economic scenarios. Changes in the fair value of embedded and freestanding derivatives are reported in net derivative gains (losses). Embedded derivatives in direct and assumed reinsurance contracts are reported in future policyholders’ benefits and other policyholders’ liabilities. Amounts due from reinsurers contains the reinsurance of underlying GMIB contracts that are embedded derivatives, so the reinsurance has the same risk attributes as the underlying contracts and is an embedded derivatives carried at fair value. There are also embedded derivatives reported in the GMIB reinsurance contract asset related to ceded reinsurance contracts that are net settled, recorded at fair value in the consolidated balance sheets. |
Separate Accounts | Separate Accounts Generally, Separate Accounts established under New York State Insurance Law are not chargeable with liabilities that arise from any other business of the Company. Separate Accounts assets are subject to General Account claims only to the extent Separate Accounts assets exceed separate accounts liabilities. Assets and liabilities of the Separate Account represent the net deposits and accumulated net investment earnings (loss) less fees, held primarily for the benefit of policyholders, and for which the Company does not bear the investment risk. Separate Accounts assets and liabilities are shown on separate lines in the consolidated balance sheets. Assets held in Separate Accounts are reported at quoted market values or, where quoted values are not readily available or accessible for these securities, their fair value measures most often are determined through the use of model pricing that effectively discounts 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. Investment performance (including investment income, net investment gains (losses) and changes in unrealized gains (losses)) and the corresponding amounts credited to policyholders of such Separate Accounts are offset within the same line in the consolidated statements of income (loss). Deposits to Separate Accounts are reported as increases in Separate Accounts assets and liabilities and are not reported in the consolidated statements of income (loss). Mortality, policy administration and surrender charges on all policies including those funded by Separate Accounts are included in revenues. The Company reports the General Account’s interests in Separate Accounts as trading securities, at fair value in the consolidated balance sheets. |
Leases | Leases The Company does not record leases with an initial term of 12 months or less in its consolidated balance sheets, but instead recognizes lease expense for these leases on a straight-line basis over the lease term. For leases with a term greater than one year, the Company records in its consolidated balance sheets at the time of lease commencement or modification a RoU operating lease asset and a lease liability, initially measured at the present value of the lease payments. Lease costs are recognized in the consolidated statements of income (loss) over the lease term on a straight-line basis. RoU operating lease assets represent the Company’s right to use an underlying asset for the lease term and RoU operating lease liabilities represent the Company’s obligation to make lease payments arising from the lease. |
Broker-Dealer Revenues and Payables | Broker-Dealer Revenues, Receivables and Payables Certain of the Company’s subsidiaries provide investment management, brokerage and distribution services for affiliates and third parties. Third-party revenues earned from these services are reported in other income in the Company’s consolidated statement of income (loss). Receivables from and payables to clients include amounts due on cash and margin transactions. Securities owned by customers are held as collateral for receivables; such collateral is not reflected in the consolidated financial statements. |
Capitalized Computer Software and Hosting Arrangements | Capitalized Computer Software and Hosting Arrangements Capitalized computer software and hosting arrangements include certain internal and external costs used to implement internal-use software and cloud computing hosting arrangements. These capitalized computer costs are included in other assets in the consolidated balance sheets and amortized on a straight-line basis over the estimated useful life of the software or term of the hosting arrangement that ranges between three |
Income Taxes | Income Taxes The Company files as part of a consolidated Federal income tax return. The Company provides for federal and state income taxes currently payable, as well as those deferred due to temporary differences between the financial reporting and tax bases of assets and liabilities. Current federal income taxes are charged or credited to operations based upon amounts estimated to be payable or recoverable as a result of taxable operations for the current year. Deferred income tax assets and liabilities are recognized based on the difference between financial statement carrying amounts and income tax bases of assets and liabilities using enacted income tax rates and laws. Valuation allowances are established when management determines, based on available information, that it is more likely than not that deferred tax assets will not be realized. Under accounting for uncertainty in income taxes guidance, the Company determines whether it is more likely than not that a tax position will be sustained upon examination by the appropriate taxing authorities before any part of the benefit can be recorded in the consolidated financial statements. Tax positions are then measured at the largest amount of benefit that is greater than 50% likely of being realized upon settlement. |
Recognition of Investment Management and Service Fees and Related Expenses | Recognition of Investment Management and Service Fees and Related Expenses Investment management, advisory and service fees Reported as investment management and service fees in the Company’s consolidated statements of income (loss) are investment management fees earned by EIMG as well as certain asset-based fees associated with insurance contracts. EIMG provides investment management services, to EQ Premier VIP Trust, EQAT and 1290 Funds as well as two private investment trusts established in the Cayman Islands, AXA Allocation Funds Trust and AXA Offshore Multimanager Funds Trust (collectively, the “Other AXA Trusts”). The contracts supporting these revenue streams create a distinct, separately identifiable performance obligation for each day the assets are managed for the performance of a series of services that are substantially the same and have the same pattern of transfer to the customer. Accordingly, these investment management, advisory, and administrative service base fees are recorded over time as services are performed and entitle the Company to variable consideration. Base fees, generally calculated as a percentage of AUM, are recognized as revenue at month-end when the transaction price no longer is variable and the value of the consideration is determined. These fees are not subject to claw back and there is minimal probability that a significant reversal of the revenue recorded will occur. Sub-advisory and sub-administrative expenses associated with these services are calculated and recorded as the related services are performed in other operating costs and expense in the consolidated statements of income (loss) as the Company is acting in a principal capacity in these transactions and, as such, reflects these revenues and expenses on a gross basis. Distribution services Revenues from distribution services include fees received as partial reimbursement of expenses incurred in connection with the sale of certain mutual funds and the 1290 Funds and for the distribution primarily of EQAT and EQ Premier VIP Trust shares to separate accounts in connection with the sale of variable life and annuity contracts. The amount and timing of revenues recognized from performance of these distribution services often is dependent upon the contractual arrangements with the customer and the specific product sold as further described below. Most open-end management investment companies, such as U.S. funds and the EQAT and EQ Premier VIP Trusts and the 1290 Funds, have adopted a plan under Rule 12b-1 of the Investment Company Act that allows for certain share classes to pay out of assets, distribution and service fees for the distribution and sale of its shares (“12b-1 Fees”). These open-end management investment companies have such agreements with the Company, and the Company has selling and distribution agreements pursuant to which it pays sales commissions to the financial intermediaries that distribute the shares. These agreements may be terminated by either party upon notice (generally 30 days) and do not obligate the financial intermediary to sell any specific amount of shares. The Company records 12b-1 fees monthly based upon a percentage of the NAV of the funds. At month-end, the variable consideration of the transaction price is no longer constrained as the NAV can be calculated and the value of consideration is determined. These services are separate and distinct from other asset management services as the customer can benefit from these services independently of other services. The Company accrues the corresponding 12b-1 fees paid to sub-distributors monthly as the expenses are incurred. The Company is acting in a principal capacity in these transactions; as such, these revenues and expenses are recorded on a gross basis in the consolidated statements of income (loss). Other revenues Also reported as investment management and service fees in the Company’s consolidated statements of income (loss) are other revenues from contracts with customers, primarily consisting of mutual fund reimbursements and other brokerage income. Other income Revenues from contracts with customers reported as other income in the Company’s consolidated statements of income (loss) primarily consist of advisory account fees and brokerage commissions from the Company’s broker-dealer operations and sales commissions from the Company’s general agents for the distribution of non-affiliate insurers’ life insurance and annuity products. These revenues are recognized at month-end when constraining factors, such as AUM and product mix, are resolved and the transaction pricing no longer is variable such that the value of consideration can be determined. |
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 December 31, 2021, 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 December 31, 2021 and December 31, 2020 are total assets of $169 million and $12 million, respectively related to these VIE. Non-Consolidated VIEs As of December 31, 2021 and December 31, 2020, respectively, the Company held approximately $2.1 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 |
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 December 31, 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) | 12 Months Ended |
Dec. 31, 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 was 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. The ASU also prescribes the discount rate to be used in measuring the liability for future policy benefits for traditional and limited payment long-duration contracts. 2. Measurement of MRBs. MRBs, as defined under the ASU, will encompass certain GMxB features associated with variable annuity products and other general account annuities with other than nominal market risk. 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. 4. Expanded footnote disclosures. The ASU requires additional disclosures including information about significant inputs, judgements, assumptions and methods used in measurement 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 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. For MRBs, the ASU should be applied retrospectively as of the beginning of the earliest period presented. The Company continues to progress with implementation efforts and the evaluation of the impact that adoption of this guidance will have on the Company’s consolidated financial statements. Due to its extensive nature, the adoption of the ASU is expected to have a significant impact on the Company’s consolidated financial statements, as well as systems, processes and controls. Effective January 1, 2023, the new guidance will be adopted using the modified retrospective approach, except for MRBs which will use the full retrospective approach. The Company has created a governance framework and implementation plan to ensure timely adoption of the guidance. In preparation for implementation, the Company continues to refine key accounting policy decisions, modernize processes and update internal controls. These changes include modifications of actuarial valuation systems, data sourcing, analytical procedures and reporting processes. The impact on total equity of applying this ASU is estimated to be less than the current amount of reported AOCI as of December 31, 2021. The majority of the total equity impact as of December 31, 2021 is expected to be reflected in AOCI due to decreases in the Company’s estimate of its non-performance risk on variable annuity guarantees accounted for as MRBs for the first time under the guidance. The estimated impact to the retained earnings element of total equity as of December 31, 2021, due to accounting for variable annuity guarantees as MRBs that are not currently measured at fair value, is mitigated by the Company’s present use of a near industry low interest rate assumption of 2.25% on GMIB business. Because movements in equity markets, interest rates and credit spreads are unpredictable and at times volatile, it is possible that the estimated effects of adoption could change materially between December 31, 2021 and January 1, 2023. 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. On December 15, 2021, the FASB tentatively approved deferring the sunset date of the guidance in Topic 848 to December 31, 2024. 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) | 12 Months Ended |
Dec. 31, 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) December 31, 2021 Fixed Maturities: Corporate (1) $ 45,578 $ 22 $ 2,382 $ 214 $ 47,724 U.S. Treasury, government and agency 13,032 — 2,196 14 15,214 States and political subdivisions 527 — 73 3 597 Foreign governments 1,124 — 42 14 1,152 Residential mortgage-backed (2) 82 — 8 — 90 Asset-backed (3) 5,904 — 20 19 5,905 Commercial mortgage-backed 2,348 — 19 26 2,341 Redeemable preferred stock (4) 41 — 12 — 53 Total at December 31, 2021 $ 68,636 $ 22 $ 4,752 $ 290 $ 73,076 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 of the Notes to these Consolidated Financial Statements – Investments). |
Contractual Maturities of Available-for-Sale Fixed Maturities | The contractual maturities of AFS fixed maturities as of December 31, 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) December 31, 2021: Contractual maturities: Due in one year or less $ 896 $ 898 Due in years two through five 13,658 14,164 Due in years six through ten 16,486 17,302 Due after ten years 29,199 32,323 Subtotal 60,239 64,687 Residential mortgage-backed 82 90 Asset-backed 5,904 5,905 Commercial mortgage-backed 2,348 2,341 Redeemable preferred stock 41 53 Total at December 31, 2021 $ 68,614 $ 73,076 |
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 years ended December 31, 2021, 2020 and 2019: Proceeds from Sales, Gross Gains (Losses) from Sales and Credit Losses for AFS Fixed Maturities Year Ended December 31, 2021 2020 2019 (in millions) Proceeds from sales $ 26,678 $ 12,670 $ 8,702 Gross gains on sales $ 1,141 $ 854 $ 229 Gross losses on sales $ (189) $ (34) $ (28) Credit losses $ (16) $ (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 Year Ended December 31, 2021 2020 2019 (in millions) Balance, beginning of period $ 28 $ 15 $ 46 Previously recognized impairments on securities that matured, paid, prepaid or sold (2) — (31) 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 9 6 — Additional credit losses this period on securities previously impaired 7 7 — 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 December 31, $ 42 $ 28 $ 15 ______________ (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, January 1, 2021 $ 8,230 $ (466) $ (1,814) $ (1,250) $ 4,700 Net investment gains (losses) arising during the period (2,902) — — — (2,902) Reclassification adjustment: — Included in net income (loss) (835) — — — (835) Excluded from net income (loss) — — — — — Other (31) — — — (31) Impact of net unrealized investment gains (losses) — 182 837 577 1,596 Net unrealized investment gains (losses) excluding credit losses 4,462 (284) (977) (673) 2,528 Net unrealized investment gains (losses) with credit losses — — — — — Balance, December 31, 2021 $ 4,462 $ (284) $ (977) $ (673) $ 2,528 Balance, January 1, 2020 $ 3,084 $ (826) $ (192) $ (433) $ 1,633 Net investment gains (losses) arising during the period 5,953 — — — 5,953 Reclassification adjustment: — Included in Net income (loss) (802) — — — (802) Excluded from Net income (loss) — — — — — Impact of net unrealized investment gains (losses) — 360 (1,623) (818) (2,081) Net unrealized investment gains (losses) excluding credit losses 8,235 (466) (1,815) (1,251) 4,703 Net unrealized investment gains (losses) with credit losses (5) — 1 1 (3) Balance, December 31, 2020 $ 8,230 $ (466) $ (1,814) $ (1,250) $ 4,700 Balance, January 1, 2019 $ (577) $ 37 $ (69) $ 125 $ (484) Net investment gains (losses) arising during the period 3,872 — — — 3,872 Reclassification adjustment: Included in Net income (loss) (211) — — — (211) Excluded from Net income (loss) — — — — — Impact of net unrealized investment gains (losses) — (863) (123) (558) (1,544) Net unrealized investment gains (losses) excluding credit losses 3,084 (826) (192) (433) 1,633 Net unrealized investment gains (losses) with credit losses — — — — — Balance, December 31, 2019 $ 3,084 $ (826) $ (192) $ (433) $ 1,633 _____________ (1) Effective January 1, 2021, certain preferred stock have been reclassified to other equity investments (see Note 2 of the Notes to these Consolidated Financial Statements – Investments). |
Continuous Gross Unrealized Losses for Available-for-Sale Fixed Maturities | The following tables disclose the fair values and gross unrealized losses of the 1,896 issues as of December 31, 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) December 31, 2021 Fixed Maturities: Corporate $ 9,497 $ 150 $ 1,301 $ 62 $ 10,798 $ 212 U.S. Treasury, government and agency 947 10 103 4 1,050 14 States and political subdivisions 112 2 11 1 123 3 Foreign governments 349 6 92 8 441 14 Asset-backed 3,843 19 38 — 3,881 19 Commercial mortgage-backed 1,515 22 96 4 1,611 26 Total at December 31, 2021 $ 16,263 $ 209 $ 1,641 $ 79 $ 17,904 $ 288 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 on Mortgage Loans | The change in the allowance for credit losses for commercial mortgage loans and agricultural mortgage loans during the years ended December 31, 2021 and 2020 were as follows: Year Ended December 31, 2021 2020 (in millions) Allowance for credit losses on mortgage loans: Commercial mortgages: Balance, beginning of period $ 77 $ 33 Current-period provision for expected credit losses (20) 44 Write-offs charged against the allowance — — Recoveries of amounts previously written off — — Net change in allowance (20) 44 Balance, end of period $ 57 $ 77 Agricultural mortgages: Balance, beginning of period $ 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 $ 5 $ 4 Total allowance for credit losses $ 62 $ 81 |
Financing Receivable Credit Quality Indicators | The following tables summarize the Company’s mortgage loans segregated by risk rating exposure as of December 31, 2021 and December 31, 2020. LTV Ratios (1) December 31, 2021 Amortized Cost Basis by Origination Year 2021 2020 2019 2018 2017 Prior Total (in millions) Mortgage loans: Commercial: 0% - 50% $ — $ — $ — $ 184 $ 293 $ 992 $ 1,469 50% - 70% 1,967 1,334 407 619 491 2,533 7,351 70% - 90% 190 236 412 415 276 972 2,501 90% plus — — — 35 5 73 113 Total commercial $ 2,157 $ 1,570 $ 819 $ 1,253 $ 1,065 $ 4,570 $ 11,434 Agricultural: 0% - 50% $ 180 $ 212 $ 128 $ 129 $ 119 $ 738 $ 1,506 50% - 70% 200 268 102 126 87 338 1,121 70% - 90% — — — — — 17 17 90% plus — — — — — — — Total agricultural $ 380 $ 480 $ 230 $ 255 $ 206 $ 1,093 $ 2,644 Total mortgage loans: 0% - 50% $ 180 $ 212 $ 128 $ 313 $ 412 $ 1,730 $ 2,975 50% - 70% 2,167 1,602 509 745 578 2,871 8,472 70% - 90% 190 236 412 415 276 989 2,518 90% plus — — — 35 5 73 113 Total mortgage loans $ 2,537 $ 2,050 $ 1,049 $ 1,508 $ 1,271 $ 5,663 $ 14,078 Debt Service Coverage Ratios (2) December 31, 2021 Amortized Cost Basis by Origination Year 2021 2020 2019 2018 2017 Prior Total (in millions) Mortgage loans: Commercial: Greater than 2.0x $ 1,143 $ 1,243 $ 210 $ 772 $ 485 $ 2,218 $ 6,071 1.8x to 2.0x 185 135 250 46 161 372 1,149 1.5x to 1.8x 275 97 284 211 166 919 1,952 1.2x to 1.5x 264 95 75 101 253 701 1,489 1.0x to 1.2x 290 — — 88 — 287 665 Less than 1.0x — — — 35 — 73 108 Total commercial $ 2,157 $ 1,570 $ 819 $ 1,253 $ 1,065 $ 4,570 $ 11,434 Agricultural: Greater than 2.0x $ 49 $ 64 $ 25 $ 22 $ 24 $ 210 $ 394 1.8x to 2.0x 52 37 25 14 14 70 212 1.5x to 1.8x 43 113 28 22 41 193 440 1.2x to 1.5x 161 179 112 116 72 355 995 1.0x to 1.2x 75 83 31 77 54 226 546 Less than 1.0x — 4 9 4 1 39 57 Total agricultural $ 380 $ 480 $ 230 $ 255 $ 206 $ 1,093 $ 2,644 Total mortgage loans: December 31, 2021 Amortized Cost Basis by Origination Year 2021 2020 2019 2018 2017 Prior Total (in millions) Greater than 2.0x $ 1,192 $ 1,307 $ 235 $ 794 $ 509 $ 2,428 $ 6,465 1.8x to 2.0x 237 172 275 60 175 442 1,361 1.5x to 1.8x 318 210 312 233 207 1,112 2,392 1.2x to 1.5x 425 274 187 217 325 1,056 2,484 1.0x to 1.2x 365 83 31 165 54 513 1,211 Less than 1.0x — 4 9 39 1 112 165 Total mortgage loans $ 2,537 $ 2,050 $ 1,049 $ 1,508 $ 1,271 $ 5,663 $ 14,078 _____________ (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. |
Age Analysis Of Past Due Mortgage Loans | The following table provides information relating to the aging analysis of past-due mortgage loans as of December 31, 2021 and 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) December 31, 2021: Mortgage loans: Commercial $ — $ — $ — $ — $ 11,434 $ 11,434 $ — $ 11,434 $ — $ — Agricultural 1 1 25 27 2,601 2,628 16 2,644 — — Total $ 1 $ 1 $ 25 $ 27 $ 14,035 $ 14,062 $ 16 $ 14,078 $ — $ — 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. |
Unrealized and Realized Gains (Losses) from Equity Securities and Net Investment Income (Loss) from Trading Securities | The table below presents a breakdown of unrealized and realized gains and (losses) on equity securities during the year ended December 31, 2021. Unrealized and Realized Gains (Losses) from Equity Securities (1) Year Ended December 31, 2021 (in millions) Net investment gains (losses) recognized during the period on securities held at the end of the period $ 9 Net investment gains (losses) recognized on securities sold during the period (2) Unrealized and realized gains (losses) on equity securities $ 7 ______________ (1) Effective January 1, 2021, certain preferred stock have been reclassified to other equity investments (see Note 2 of the Notes to these Consolidated Financial Statements – Investments). Net Investment Income (Loss) from Trading Securities Year Ended December 31, 2021 2020 2019 (in millions) Net investment gains (losses) recognized during the period on securities held at the end of the period $ (264) $ 96 $ 422 Net investment gains (losses) recognized on securities sold during the period 206 10 7 Unrealized and realized gains (losses) on trading securities (58) 106 429 Interest and dividend income from trading securities 92 206 283 Net investment income (loss) from trading securities $ 34 $ 312 $ 712 |
Net Investment Income (Loss) | The following table breaks out net investment income (loss) by asset category: Year Ended December 31, 2021 2020 2019 (in millions) Fixed maturities $ 2,293 $ 2,193 $ 1,902 Mortgage loans on real estate 547 516 540 Other equity investments 525 79 72 Policy loans 209 198 198 Trading securities 34 312 712 Other investment income 47 49 18 Gross investment income (loss) 3,655 3,347 3,442 Investment expenses (172) (139) (144) Net investment income (loss) $ 3,483 $ 3,208 $ 3,298 |
Investment Gains (Losses), Net | Investment gains (losses), net including changes in the valuation allowances and credit losses are as follows: Year Ended December 31, 2021 2020 2019 (in millions) Fixed maturities $ 834 $ 801 $ 203 Mortgage loans on real estate 20 (45) (1) Other equity investments (1) — 30 3 Other (1) 1 1 Investment gains (losses), net $ 853 $ 787 $ 206 (1) Investment gains (losses), net of Other equity investments includes Real Estate Held for production during years ended December 31, 2020 and December 31, 2019. |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments by Category | The tables below present quantitative disclosures about the Company’s derivative instruments designated in hedging relationships and derivative instruments which have not been designated in hedging relationships, including those embedded in other contracts required to be accounted for as derivative instruments. The following table presents the gross notional amount and estimated fair value of the Company’s derivatives: Derivative Instruments by Category December 31, 2021 December 31, 2020 Fair Value Fair Value Notional Derivative Assets Derivative Notional Derivative Assets Derivative (in millions) Derivatives: Designated for Hedge accounting (1) Cash Flow Hedges: Currency Swaps $ 921 $ 7 $ 42 $ — $ — $ — Interest Swaps 955 — 395 957 — 219 Total: Designated for Hedge Accounting 1,876 7 437 957 — 219 Derivatives: Not designated for Hedge accounting (1) Equity contracts: Futures (5) 2,213 — — 4,267 — — Swaps (5) 13,310 5 — 22,404 6 — Options 48,380 12,015 5,059 35,786 8,383 3,715 Interest rate contracts: Futures (5) 12,455 — — 18,161 — — Swaps (5) 1,876 — 45 22,816 551 434 Swaptions — — — — — — Credit contracts: Credit default swaps 619 2 3 919 8 1 Currency contracts: Currency Swaps 541 1 — 347 — — Currency forwards — — — — — — Other contracts: Margin — 102 — — 26 66 Collateral — 178 6,154 — 212 3,835 Total: Not designated for Hedge accounting 79,394 12,303 11,261 104,700 9,186 8,051 Embedded Derivatives: Amounts due from reinsurers (6) — 5,813 — — — — GMIB reinsurance contracts (2) — 2,068 — — 2,859 — GMxB derivative features liability (3) — — 8,525 — — 10,936 SCS, SIO, MSO and IUL indexed features (4) — — 6,641 — — 4,378 Total Embedded Derivatives — 7,881 15,166 — 2,859 15,314 Total derivative instruments $ 81,270 $ 20,191 $ 26,864 $ 105,657 $ 12,045 $ 23,584 ______________ (1) Reported in other invested assets in the consolidated balance sheets. (2) Reported in GMIB reinsurance contract asset in the consolidated balance sheets. (3) Reported in future policy benefits and other policyholders’ liabilities in the consolidated balance sheets. (4) Reported in policyholders’ account balances in the consolidated balance sheets. (5) Decrease in futures and swaps notional as of December 31, 2021 is primarily due to the Venerable Transaction (see Note 1 of the Notes to these Consolidated Financial Statements). The following table presents the effects of derivative instruments on the consolidated statements of income and comprehensive income (loss). Year Ended December 31, 2021 Year Ended December 31, 2020 Year Ended December 31, 2019 Net Interest Credited To Policyholders Account Balances AOCI Net Interest Credited To Policyholders Account Balances AOCI Net Interest Credited To Policyholders Account Balances AOCI (in millions) Derivatives: Designated for hedge accounting Cash flow hedges: Currency swaps $ (2) $ (45) $ 5 $ — $ — $ — $ — $ — $ — Interest swaps (69) — (87) (9) — (87) 4 — (28) Total: Designated for hedge accounting (71) (45) (82) (9) — (87) 4 — (28) Derivatives: Not designated for hedge accounting Equity contracts: Futures (607) — — (955) — — (1,294) — — Swaps (3,608) — — (3,353) — — (2,405) — — Options 3,883 — — 1,663 — — 2,211 — — Interest rate contracts: Futures (727) — — 1,745 — — 139 — — Swaps (2,316) — — 2,832 — — 2,033 — — Swaptions — — — 9 — — (35) — — Credit contracts: Credit default swaps 1 — — — — — 16 — — Currency contracts: Currency swaps 3 — — (2) — — (9) — — Currency forwards — — — — — — — — — Other contracts: Margin — — — — — — — — — Collateral — — — — — — — — — Total: Not designated for hedge accounting (3,371) — — 1,939 — — 656 — — Embedded Derivatives: Amounts due from reinsurers 517 — — — — — — — — GMIB reinsurance contracts (777) — — 472 — — 500 — — GMxB derivative features liability 2,792 — — (2,238) — — (2,439) — — SCS, SIO, MSO and IUL indexed features (3,760) — — (1,693) — — (2,552) — — Total Embedded Derivatives (1,228) — — (3,459) — — (4,491) — — Total Derivatives $ (4,670) $ (45) $ (82) $ (1,529) $ — $ (87) $ (3,831) $ — $ (28) ______________ (1) Reported in net derivative gains (losses) in the consolidated statements of income (loss). (2) For the years ended December 31, 2021 and 2020, investment fees of $15 million and $12 million respectively, are reported in net derivative gains (losses) in the consolidated statements of income (loss). |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) | Rollforward of Cash flow hedges in AOCI Year Ended December 31, 2021 2020 2019 (in millions) Balance, beginning of period $ (126) $ (38) $ (10) Amount recorded in AOCI — — — Currency Swaps (35) — — Interest Swaps (183) (108) (45) Total Amount recorded in AOCI (218) (108) (45) Amount reclassified from AOCI to income — — — Currency Swaps 40 — — Interest Swaps 96 20 17 Total Amount reclassified from AOCI to income 136 20 17 Ending Balance, December 31 (1) $ (208) $ (126) $ (38) ______________ (1) The Company does not estimate the amount of the deferred losses in AOCI at years ended December 31, 2021, 2020 and 2019 which will be released and reclassified into Net income (loss) over the next 12 months as the amounts cannot be reasonably estimated. |
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 December 31, 2021 and December 31, 2020: Offsetting of Financial Assets and Liabilities and Derivative Instruments As of December 31, 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 $ 12,309 $ 10,724 $ 1,585 $ (961) $ 624 Other financial assets 1,325 — 1,325 — 1,325 Other invested assets $ 13,634 $ 10,724 $ 2,910 $ (961) $ 1,949 Liabilities: Derivative liabilities $ 10,738 $ 10,724 $ 14 $ — $ 14 Other financial liabilities 2,064 — 2,064 — 2,064 Other liabilities $ 12,802 $ 10,724 $ 2,078 $ — $ 2,078 ______________ (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 assets 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) | 12 Months Ended |
Dec. 31, 2021 | |
Closed Block Disclosure [Abstract] | |
Schedule of Closed Block Assets and Liabilities | Summarized financial information for the Company’s Closed Block is as follows: December 31, 2021 2020 (in millions) Closed Block Liabilities: Future policy benefits, policyholders’ account balances and other $ 5,928 $ 6,201 Policyholder dividend obligation — 160 Other liabilities 39 39 Total Closed Block liabilities 5,967 6,400 Assets Designated to the Closed Block: Fixed maturities AFS, at fair value (amortized cost of $3,185 and $3,359) (allowance for credit losses of $0 and $0) 3,390 3,718 Mortgage loans on real estate (net of allowance for credit losses of $4 and $6) 1,771 1,773 Policy loans 602 648 Cash and other invested assets 63 28 Other assets 90 169 Total assets designated to the Closed Block 5,916 6,336 Excess of Closed Block liabilities over assets designated to the Closed Block 51 64 Amounts included in AOCI: Net unrealized investment gains (losses), net of policyholders’ dividend obligation: $0 and $160; and net of income tax: $(43) and $(42) 172 167 Maximum future earnings to be recognized from Closed Block assets and liabilities $ 223 $ 231 |
Closed Block Operations, Net Results | The Company’s Closed Block revenues and expenses were as follows: Year Ended December 31, 2021 2020 2019 (in millions) Revenues: Premiums and other income $ 144 $ 157 $ 182 Net investment income (loss) 237 251 278 Investment gains (losses), net 4 — (1) Total revenues 385 408 459 Benefits and Other Deductions: Policyholders’ benefits and dividends 372 399 439 Other operating costs and expenses 3 1 2 Total benefits and other deductions 375 400 441 Net income (loss), before income taxes 10 8 18 Income tax (expense) benefit (2) (2) (2) Net income (loss) $ 8 $ 6 $ 16 |
Closed Block Dividend Obligation | A reconciliation of the Company’s policyholder dividend obligation follows: Year Ended December 31, 2021 2020 2019 (in millions) Beginning balance $ 160 $ 2 $ — Unrealized investment gains (losses) (160) 158 2 Ending balance $ — $ 160 $ 2 |
DAC AND POLICYHOLDER BONUS IN_2
DAC AND POLICYHOLDER BONUS INTEREST CREDITS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Contract holder Bonus Interest Credits [Abstract] | |
Deferred Policy Acquisition Costs | Changes in the DAC asset for the years ended December 31, 2021, 2020 and 2019 were as follows: Year Ended December 31, 2021 2020 2019 (in millions) Balance, beginning of year (1) $ 3,816 $ 4,225 $ 4,959 Capitalization of commissions, sales and issue expenses 724 564 646 Amortization: Impact of assumptions updates and model changes 19 (866) 77 All other (475) (467) (597) Total amortization (456) (1,333) (520) Change in unrealized investment gains and losses 183 360 (863) Balance, end of year $ 4,267 $ 3,816 $ 4,222 _______________ (1) December 31, 2020 DAC beginning balance is $3 million more than December 31, 2019 ending balance due to impact of CECL. |
Schedule of Changes of Deferred Assets for Policyholder Bonus Credits and Deferred Acquisition Costs | The deferred asset for policyholder bonus interest credits is reported in other assets in the consolidated balance sheets and changes in the deferred asset for policyholder bonus Interest credits are reported in interest credited to policyholders’ account balances. For the years ended December 31, 2021, 2020 and 2019 changes were as follows: Year Ended December 31, 2021 2020 2019 (in millions) Balance, beginning of year $ 405 $ 431 $ 448 Amortization charged to income (44) (26) (17) Balance, end of year $ 361 $ 405 $ 431 |
FAIR VALUE DISCLOSURES (Tables)
FAIR VALUE DISCLOSURES (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, 2021 Level 1 Level 2 Level 3 Total (in millions) Assets: Investments: Fixed maturities, AFS: Corporate (1) $ — $ 46,231 $ 1,493 $ 47,724 U.S. Treasury, government and agency — 15,214 — 15,214 States and political subdivisions — 562 35 597 Foreign governments — 1,152 — 1,152 Residential mortgage-backed (2) — 90 — 90 Asset-backed (3) — 5,897 8 5,905 Commercial mortgage-backed — 2,321 20 2,341 Redeemable preferred stock — 53 — 53 Total fixed maturities, AFS — 71,520 1,556 73,076 Other equity investments 243 434 5 682 Trading securities 193 186 — 379 Other invested assets: Short-term investments — — — — Assets of consolidated VIEs/VOEs — — 8 8 Swaps — (469) — (469) Credit default swaps — (1) — (1) Options — 6,956 — 6,956 Total other invested assets — 6,486 8 6,494 Cash equivalents 1,109 273 — 1,382 Amounts due from reinsurer (5) — — 5,813 5,813 GMIB reinsurance contracts asset — — 2,068 2,068 Separate Accounts assets (4) 140,740 2,565 1 143,306 Total Assets $ 142,285 $ 81,464 $ 9,451 $ 233,200 Liabilities: GMxB derivative features’ liability $ — $ — $ 8,525 $ 8,525 SCS, SIO, MSO and IUL indexed features’ liability — 6,641 — 6,641 Total Liabilities $ — $ 6,641 $ 8,525 $ 15,166 ______________ (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 December 31, 2021 the fair value of such investments was $404 million. (5) This represents GMIB NLG ceded reserves related to Venerable transaction. See Note 1 of the Notes to these Consolidated Financial Statements 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 and changes in unrealized gains (losses) for the years ended December 31, 2021, 2020 and 2019, respectively. Corporate State and Political Subdivisions CMBS Asset-backed Trading Securities, at Fair Value (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) 5 — — — — Investment gains (losses), net (16) — — — — Subtotal (11) — — — — Other comprehensive income (loss) 34 (2) — — — Purchases 937 — 20 6 — Sales (468) (2) — (18) — Activity related to consolidated VIEs/VOEs — — — — Transfers into Level 3 (1) 27 — — — — Transfers out of Level 3 (1) (713) — — — — Corporate State and Political Subdivisions CMBS Asset-backed Trading Securities, at Fair Value (in millions) Balance, December 31, 2021 $ 1,493 $ 35 $ 20 $ 8 $ — Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (2) $ — $ — $ — $ — $ — Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period (2) $ 28 $ (2) $ — $ — $ — 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) 4 — — — — Investment gains (losses), net (16) — — — — Subtotal (12) — — — — Other comprehensive income (loss) (17) 2 — — — Purchases 513 — — 20 — Sales (224) (2) — — — Transfers into Level 3 (1) 184 — — — — Transfers out of Level 3 (1) (3) — — (100) — Balance, December 31, 2020 $ 1,687 $ 39 $ — $ 20 $ — Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (2) $ — $ — $ — $ — $ — Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period (2) $ (18) $ 2 $ — $ — $ — Balance, January 1, 2019 $ 1,174 $ 38 $ — $ 519 $ 29 Total gains and (losses), realized and unrealized, included in: Net income (loss) as: Net investment income (loss) 4 — — — — Investment gains (losses), net — — — — — Subtotal 4 — — — — Other comprehensive income (loss) 5 3 — 1 — Purchases 273 — — 100 — Sales (120) (2) — (84) — Transfers into Level 3 (1) 14 — — — — Transfers out of Level 3 (1) (104) — — (436) (29) Balance, December 31, 2019 $ 1,246 $ 39 $ — $ 100 $ — Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (2) $ — $ — $ — $ — $ — Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period (2) $ 3 $ 3 $ — $ — $ — ______________ (1) Transfers into/out of the Level 3 classification are reflected at beginning-of-period fair values. (2) For instruments held as of December 31, 2021, December 31, 2020 and December 31, 2019 amounts are included in net investment income or net derivative gains (losses) in the consolidated statements of income (loss) or unrealized gains (losses) on investments in the consolidated statements of comprehensive income. Other Equity Investments (7) 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), reported in net investment income 2 — — — Net derivative gains (losses) (1) — 517 (777) — 2,792 Total realized and unrealized gains (losses) 2 517 (777) — 2,792 Purchases (2) 1 73 44 1 (458) Sales (3) (1) (36) (58) — 77 Settlements — — — — — Other (5) — 5,259 — — — Activity related to consolidated VIEs/VOEs (4) — — — — Transfers into Level 3 (4) — — — — — Transfers out of Level 3 (4) — — — (1) — Balance, December 31, 2021 $ 13 $ 5,813 $ 2,068 $ 1 $ (8,525) Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (6) $ 2 $ 517 $ (777) $ — $ 2,792 Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period (6) $ — $ — $ — $ — $ — Balance, January 1, 2020 $ 16 $ — $ 2,466 $ — $ (8,316) Realized and unrealized gains (losses), included in Net income (loss) as: Investment gains (losses), reported in net investment income — — — — — Net derivative gains (losses) — — 472 — (2,238) Total realized and unrealized gains (losses) — — 472 — (2,238) Purchases (2) 3 — 45 1 (441) Sales (3) — — (79) — 59 Settlements — — — — — Change in estimate — — (45) — — Other Equity Investments (7) Amounts Due from Reinsurers GMIB Reinsurance Contract Asset Separate Accounts Assets GMxB Derivative Features Liability (in millions) Activity related to consolidated VIEs/VOEs (4) — — — — Transfers into Level 3 (4) — — — — — Transfers out of Level 3 (4) — — — — — Balance, December 31, 2020 $ 15 $ — $ 2,859 $ 1 $ (10,936) Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (6) $ — $ — $ 472 $ — $ (2,238) Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period (6) $ — $ — $ — $ — $ — Balance, January 1, 2019 $ 19 $ — $ 1,993 $ 21 $ (5,491) Realized and unrealized gains (losses), included in Net income (loss) as: Investment gains (losses), net — — — — — Net derivative gains (losses) — — 500 — (2,439) Total realized and unrealized gains (losses) — — 500 — (2,439) Purchases — — 45 — (417) Sales — — (72) (1) 31 Settlements — — — (2) — Activity related to consolidated VIEs/VOEs (3) — — — — Transfers into Level 3 — — — — — Transfers out of Level 3 — — — (18) — Balance, December 31, 2019 $ 16 $ — $ 2,466 $ — $ (8,316) Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period $ — $ — $ 500 $ — $ (2,439) Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period $ — $ — $ — $ — $ — ______________ (1) For the years ended December 31, 2021 and 2020, the Company’s non-performance risk impact of $(217) million and $(758) million for the GMxB Derivative Features Liability, $(26) million and $14 million for the GMIB Reinsurance Contract Asset, and $(19) million and $0 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. (6) For instruments held as of December 31, 2021, December 31, 2020 and December 31, 2019, amounts are included in net investment income or net derivative gains (losses) in the consolidated statements of income (loss) or unrealized gains (losses) on investments in the consolidated statements of comprehensive income. |
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 December 31, 2021 and December 31, 2020, respectively. Quantitative Information about Level 3 Fair Value Measurements as of December 31, 2021 Fair Valuation Technique Significant Range Weighted Average (2) (in millions) Assets: Investments: Fixed maturities, AFS: Corporate $ 248 Matrix pricing model Spread over Benchmark 20 bps - 270 bps 146 bps 888 Market comparable companies EBITDA multiples Discount Rate Cashflow Multiples Loan to Value 4.9x - 62.3x 6.2% - 21.5% 0.5x - 10.0x 3.1% - 63.4% 13.0x 9.1% 5.5x 30.8% Other equity investments 4 Market comparable companies Revenue multiple 7.8x - 10.3x 9.5x GMIB reinsurance contract asset 2,068 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 0.45% - 20.86% 0.27% - 8.66% 0.04% - 60.44% 57 bps - 93 bps 11% - 31% 0.01% - 0.17% 0.06% - 0.53% 0.31% - 40.00% 2.65% 0.93% 5.27% 60 bps 24% 2.79% (same for all ages) (same for all ages) Amount Due from Reinsurers 5,813 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 0.45% - 20.86% 0.27% - 8.66% 0.04% - 60.44% 37 bps 11% - 31% 0.01% - 0.17% 0.06% - 0.53% 0.31% - 40.00% 1.70% 1.18% 7.20% 37 bps 24% 2.17% (same for all ages) (same for all ages) Liabilities: GMIBNLG 8,503 Discounted cash flow Non-performance risk Lapse Withdrawal Annuitization Mortality (1): Ages 0-40 Ages 41-60 Ages 61-115 111 bps 1.04% - 23.57% 0.27% - 8.66% 0.03% - 100.00% 0.01% - 0.19% 0.07% - 0.57% 0.44% - 43.60% 111 bps 3.55% 1.04% 5.24% 1.62% (same for all ages) (same for all ages) GWBL/GMWB 99 Discounted cash flow Lapse rates Withdrawal Rates Utilization Rates Volatility rates - Equity Non-performance risk 0.60% - 20.86% 0.00% - 8.00% 100% once starting 11% - 31% 111 bps 2.65% 0.93% 24% GIB (75) Discounted cash flow Lapse rates Withdrawal Rates Utilization Rates Volatility rates - Equity Non-performance risk 0.60% - 20.86% 0.13% - 8.66% 0.04% - 100.00% 11% - 31% 111 bps 2.65% 0.93% 5.27% 24% GMAB (3) Discounted cash flow Lapse rates Volatility rates - Equity Non-performance risk 0.60% - 20.86% 11% - 31% 111 bps 2.65% 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 (2) (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. (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. |
Fair Value Disclosure Financial Instruments Not Carried At Fair Value | The carrying values and fair values as of December 31, 2021 and December 31, 2020 for financial instruments not otherwise disclosed in Note 3 and Note 4 of the Notes to these Consolidated Financial Statements 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) December 31, 2021: Mortgage loans on real estate $ 14,016 $ — $ — $ 14,291 $ 14,291 Policy loans $ 3,540 $ — $ — $ 4,512 $ 4,512 Loans to affiliates $ 1,900 $ — $ 1,974 $ — $ 1,974 Policyholders’ liabilities: Investment contracts (1) $ 1,916 $ — $ — $ 1,980 $ 1,980 FHLB funding agreements $ 6,647 $ — $ 6,679 $ — $ 6,679 FABN funding agreements $ 6,689 $ — $ 6,626 $ — $ 6,626 Separate Accounts liabilities $ 11,620 $ — $ — $ 11,620 $ 11,620 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 _____________ (1) As of December 31, 2021, r eflects transfer of certain policyholders account balances to future policyholder benefits and other policyholders liabilities related to structured settlement contracts. |
INSURANCE LIABILITIES (Tables)
INSURANCE LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 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 Year Ended December 31, 2021, 2020 and 2019 GMDB GMIB Direct Ceded Direct Ceded (in millions) Balance, January 1, 2019 $ 4,657 $ (107) $ 3,744 $ (1,993) Paid guarantee benefits (438) 14 (256) 72 Other changes in reserve 556 (6) 1,183 (545) Balance, December 31, 2019 4,775 (99) 4,671 (2,466) Paid guarantee benefits (495) 15 (293) 79 Other changes in reserve 813 — 1,647 (472) Balance, December 31, 2020 5,093 (84) 6,025 (2,859) Paid guarantee benefits (461) 113 (377) 58 Other changes in reserve 379 (90) 304 735 Impact of the Venerable transaction (1) — (2,176) — (2,141) Balance, December 31, 2021 $ 5,011 $ (2,237) $ 5,952 $ (4,207) ____________ (1) Includes the impact as of June 1, 2021 on the ceded reserves to Venerable. See Note 1 of the Notes to these Consolidated Financial Statements for details of 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 December 31, 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 December 31, 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 $ 16,188 $ 84 $ 51 $ 156 $ 16,479 Separate Accounts 59,603 9,804 3,412 34,486 107,305 Total Account Values $ 75,791 $ 9,888 $ 3,463 $ 34,642 $ 123,784 NAR, gross $ 90 $ 29 $ 1,333 $ 15,732 $ 17,184 NAR, net of amounts reinsured $ 86 $ 26 $ 937 $ 7,948 $ 8,997 Average attained age of policyholders (in years) 51.5 69.1 75.5 71.1 55.6 Percentage of policyholders over age 70 11.7% 51.3% 72.6% 57.5% 20.7% 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 $ 202 $ 218 Separate Accounts — — 26,173 36,833 63,006 Total Account Values $ — $ — $ 26,189 $ 37,035 $ 63,224 NAR, gross $ — $ — $ 632 $ 9,093 $ 9,725 NAR, net of amounts reinsured $ — $ — $ 202 $ 3,708 $ 3,910 Average attained age of policyholders (in years) N/A N/A 65.0 70.8 68.7 Weighted average years remaining until annuitization N/A N/A 6.0 0.6 2.6 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 December 31, 2021 2020 Mutual Fund Type GMDB GMIB GMDB GMIB (in millions) Equity $ 52,744 $ 20,009 $ 46,850 $ 18,771 Fixed income 5,384 2,505 5,506 2,701 Balanced 48,152 40,228 47,053 39,439 Other 1,025 264 1,111 275 Total $ 107,305 $ 63,006 $ 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. Direct Liability Reinsurance Ceded Net (in millions) Balance, January 1, 2019 $ 788 $ (734) $ 54 Paid guarantee benefits (20) — (20) Other changes in reserves 126 (74) 52 Balance, December 31, 2019 894 (808) 86 Paid guarantee benefits (40) — (40) Other changes in reserves 162 (75) 87 Balance, December 31, 2020 1,016 (883) 133 Paid guarantee benefits (84) — (84) Other changes in reserves 158 (45) 113 Balance at December 31, 2021 $ 1,090 $ (928) $ 162 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Assets and Liabilities, Leases | Balance Sheet Classification of Operating Lease Assets and Liabilities December 31, Balance Sheet Line Item 2021 2020 (in millions) Assets Operating lease assets Other assets $ 215 $ 272 Liabilities Operating lease liabilities Other liabilities $ 278 $ 350 |
Lease, Cost | The table below summarizes the components of lease costs for the years ended December 31, 2021, 2020 and 2019. Lease Costs Year Ended December 31, 2021 2020 2019 (in millions) Operating lease cost $ 73 $ 77 $ 77 Variable operating lease cost 10 11 10 Sublease income (18) (18) (16) Short-term lease expense — — 2 Net lease cost $ 65 $ 70 $ 72 The below table presents the Company’s weighted-average remaining operating lease term and weighted-average discount rate. Weighted Averages - Remaining Operating Lease Term and Discount Rate December 31, 2021 2020 Weighted-average remaining operating lease term 5 years 5 years Weighted-average discount rate for operating leases 2.90 % 3.00 % Supplemental cash flow information related to leases was as follows: Lease Liabilities Information Year Ended December 31, 2021 2020 2019 (in millions) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 94 $ 94 87 Non-cash transactions: Leased assets obtained in exchange for new operating lease liabilities $ 26 $ 20 50 |
Lessee, Operating Lease, Liability, Maturity | Maturities of lease liabilities as of December 31, 2021 are as follows: Maturities of Lease Liabilities December 31, 2021 (in millions) Operating Leases: 2022 $ 94 2023 83 2024 30 2025 26 2026 22 Thereafter 42 Total lease payments 297 Less: Interest (19) Present value of lease liabilities $ 278 |
REINSURANCE (Tables)
REINSURANCE (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Reinsurance Disclosures [Abstract] | |
Schedule Of Effect Of Reinsurance | The following table summarizes the effect of reinsurance. The impact of the reinsurance transaction described above results in an increase in reinsurance ceded. Year Ended December 31, 2021 2020 2019 (in millions) Direct premiums $ 762 $ 764 $ 868 Reinsurance assumed 181 195 194 Reinsurance ceded (193) (153) (126) Premiums $ 750 $ 806 $ 936 Direct charges and fee income $ 3,962 $ 2,684 $ 2,721 Reinsurance ceded (571) 780 766 Policy charges and fee income $ 3,391 $ 3,464 $ 3,487 Direct policyholders’ benefits $ 3,553 $ 5,233 $ 4,298 Reinsurance assumed 243 218 217 Reinsurance ceded (814) (500) (427) Policyholders’ benefits $ 2,982 $ 4,951 $ 4,088 |
Ceded Credit Risk | The following table summarizes the ceded reinsurance GMIB reinsurance contracts, third-party recoverables, amount due to reinsurance and assumed reserves.. December 31, 2021 2020 (in millions) Ceded Reinsurance: Estimated net fair values of ceded GMIB reinsurance contracts, considered derivatives (1) $ 2,068 $ 2,859 Estimated net fair values of ceded GMIB NLG ceded reserves to Venerable (2) 5,813 — Third-party reinsurance recoverables related to insurance contracts 12,459 2,245 Top reinsurers: Venerable Insurance and Annuity Company (A- KBRA (IFRS) rating) 10,335 N/A Zurich Life Insurance Company, Ltd. (AA- SAP rating) 1,318 1,421 Ceded group health reserves 40 48 Third-party reinsurance payables related to insurance contracts 127 113 Top reinsurers: Venerable Insurance and Annuity Company 27 N/A Assumed Reinsurance: Reinsurance assumed reserves 758 721 ______________ (1) The estimated fair values increased $(791) million $393 million and $475 million for the years ended December 31, 2021, 2020 and 2019, respectively. (2) Reported in amounts due from reinsurers. See Note 1 of the Notes to these Consolidated Financial Statements for details of the Venerable transaction. |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | The table below summarizes the fees received/paid by the Company and the expenses reimbursed to/from the Company in connection with certain services described above for the years ended December 31, 2021, 2020 and 2019. Year Ended December 31, 2021 2020 2019 (in millions) Revenue received or accrued for: Investment management and administrative services provided to EQAT, EQ Premier VIP Trust, 1290 Funds and other trusts $ 757 $ 724 $ 669 Amounts received or accrued for commissions and fees earned for sale of Equitable America’s insurance products 38 38 39 Total $ 795 $ 762 $ 708 Expenses paid or accrued for: Paid or accrued commission and fee expenses for sale of insurance products by Equitable Network $ 712 $ 625 $ 573 Total $ 712 $ 625 $ 573 |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
Schedule of Net Funded Status | The following table presents the funded status of the plan: December 31, 2021 2020 (in millions) Equitable Retirement Plan Total plan assets $ 2,395 $ 2,341 Accumulated benefit obligation $ 2,045 $ 2,239 Funded status 117.1 % 104.5 % |
SHARE-BASED COMPENSATION PROG_2
SHARE-BASED COMPENSATION PROGRAMS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule Of Compensation Costs | Compensation costs for Years Ended December 31, 2021, 2020 and 2019 for share-based payment arrangements as further described herein are as follows: Year Ended December 31, 2021 2020 2019 (in millions) Performance Shares $ 12 $ 13 $ 10 Stock Options — 5 3 Restricted Stock Unit Awards 27 18 15 Total Compensation Expenses $ 39 $ 36 $ 28 Income Tax Benefit 8 7 10 |
Summary Of Stock Option Activity | A summary of activity in the AXA and Holdings option plans during 2021 as follows: Options Outstanding EQH Shares AXA Ordinary Shares Number Outstanding (In 000’s) Weighted Average Exercise Price Number Outstanding (In 000’s) Weighted Average Exercise Price Options Outstanding at January 1, 2021 2,819 $ 21.12 1,417 € 20.09 Options granted — 12.26 — — Options exercised (1,005) 20.51 (601) 19.50 Options forfeited, net (150) 21.88 (86) 22.59 Options expired — — — — Options Outstanding at December 31, 2021 1,664 $ 21.66 730 € 22.44 Aggregate intrinsic value (1) $ 5,186 (€ 2,011) Weighted average remaining contractual term (in years) 7.7 4.69 Options Exercisable at December 31, 2021 690 $ — 633 € 22.44 Aggregate intrinsic value (1) $ 2,227 (€ 1,744) Weighted average remaining contractual term (in years) 7.55 4.52 ____________ |
Schedule Of Share-based Payment Award, Valuation Assumptions | A summary of stock option grant assumptions activity in the AXA and Holdings option plans during 2021, 2020, and 2019 follows: EQH Shares (1) 2021 (2) 2020 2019 Dividend yield —% 2.59% 2.77% Expected volatility —% 26.00% 25.70% Risk-free interest rates —% 1.19% 2.49% Expected life in years — 6.0 5.8 Weighted average fair value per option at grant date $ — $ 4.37 $ 3.82 ____________ (1) The expected volatility is based on historical selected peer data, the weighted average expected term is determined by using the simplified method due to lack of sufficient historical data, the expected dividend yield based on Holdings’ expected annualized dividend, and the risk-free interest rate is based on the U.S. Treasury bond yield for the appropriate expected term. |
Schedule Of Share-based Compensation, Restricted Stock Units Award Activity | The following table summarizes Holdings restricted share units and AXA ordinary share unit activity for 2021. Shares of Holdings Restricted Stock Weighted Average Grant Date Unvested as of January 1, 2021 2,053,036 $ 21.15 Granted 1,557,437 $ 28.08 Forfeited (166,466) $ 24.81 Vested (1,052,916) $ 20.74 Unvested as of December 31, 2021 2,391,091 $ 25.59 |
Schedule Of Share-based Compensation, Performance Award Activity | The following table summarizes Holdings and AXA performance awards activity for 2021. Shares of Holdings Performance Awards Weighted-Average Grant Date Shares of AXA Performance Awards Weighted-Average Grant Date Unvested as of January 1, 2021 557,455 $ 22.12 1,017,254 $ 21.28 Granted 938,444 $ 29.89 (460,094) $ 21.28 Forfeited (163,708) $ 28.24 — $ — Vested (141,597) $ 23.17 (504,315) $ 21.28 Unvested as of December 31, 2021 1,190,594 $ 28.54 52,845 $ 21.28 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Summary Of Income Tax Expense (Benefit) | A summary of the income tax (expense) benefit in the consolidated statements of income (loss) follows: Year Ended December 31, 2021 2020 2019 (in millions) Income tax (expense) benefit: Current (expense) benefit $ 11 $ (112) $ 295 Deferred (expense) benefit 463 739 284 Total $ 474 $ 627 $ 579 |
Schedule Of Effective Income Tax Rate Reconciliation | The sources of the difference and their tax effects are as follows: Year Ended December 31, 2021 2020 2019 (in millions) Expected income tax (expense) benefit $ 393 $ 291 $ 517 Non-taxable investment income 79 91 73 Tax audit interest (14) (8) (14) Tax settlements/uncertain tax position release — 231 — Tax credits 28 21 — Other (12) 1 3 Income tax (expense) benefit $ 474 $ 627 $ 579 |
Schedule Of Net Deferred Income Taxes | The components of the net deferred income taxes are as follows: December 31, 2021 2020 Assets Liabilities Assets Liabilities (in millions) Compensation and related benefits $ 46 $ — $ 58 $ — Net operating loss and credits 732 — — — Reserves and reinsurance 2,072 — 1,483 — DAC — 685 — 606 Unrealized investment gains (losses) — 892 — 1,668 Investments — 18 1,071 — Other 31 — — 111 Total $ 2,881 $ 1,595 $ 2,612 $ 2,385 |
Unrecognized Tax Benefits Reconciliation | A reconciliation of unrecognized tax benefits (excluding interest and penalties) follows: Year Ended December 31, 2021 2020 2019 (in millions) Balance at January 1, $ 281 $ 297 $ 273 Additions for tax positions of prior years 17 229 24 Reductions for tax positions of prior years (3) (250) — Additions for tax positions of current year — — — Settlements with tax authorities — 5 — Balance at December 31, $ 295 $ 281 $ 297 Unrecognized tax benefits that, if recognized, would impact the effective rate $ 43 $ 47 $ 222 |
EQUITY (Tables)
EQUITY (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, 2021, 2020, and 2019 follow: December 31, 2021 2020 (in millions) Unrealized gains (losses) on investments $ 2,362 $ 4,600 Defined benefit pension plans (5) (5) Accumulated other comprehensive income (loss) attributable to Equitable Financial $ 2,357 $ 4,595 |
Components of Accumulated Other Comprehensive Income (Loss), Net of Taxes | The components of OCI, net of taxes for the years ended December 31, 2021, 2020 and 2019, follow: Year Ended December 31, 2021 2020 2019 (in millions) Change in net unrealized gains (losses) on investments: Net unrealized gains (losses) arising during the period $ (2,293) $ 4,698 $ 3,052 (Gains) losses reclassified into net income (loss) during the period (1) (686) (633) (160) Net unrealized gains (losses) on investments (2,979) 4,065 2,892 Adjustments for policyholders’ liabilities, DAC, insurance liability loss recognition and other 741 (1,066) (797) Change in unrealized gains (losses), net of adjustments (net of deferred income tax expense (benefit) of $(595), $798, and $547) (2,238) 2,999 2,095 Change in defined benefit plans: Reclassification to net income (loss) of amortization of net prior service credit included in net periodic cost — — 2 Change in defined benefit plans, (net of deferred income tax expense (benefit) of $0, $0 and $0 (2)) — — 2 Other comprehensive income (loss), attributable to Equitable Financial $ (2,238) $ 2,999 $ 2,097 ____________ (1) See “Reclassification adjustments” in Note 3 of the Notes to these Consolidated Financial Statements. Reclassification amounts presented net of income tax expense (benefit) of $182 million, $(168) million , and $(42) million for the years ended December 31, 2021, 2020 and 2019, respectively. |
COMMITMENTS AND CONTINGENT LI_2
COMMITMENTS AND CONTINGENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Activity of Funding Agreements | Change in FHLB Funding Agreements during the Year Ended December 31, 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 December 31, 2021 (in millions) Short-term funding agreements: Due in one year or less $ 5,634 $ 59,846 $ 60,504 $ 377 $ — $ 5,353 Long-term funding agreements: Due in years two through five 722 411 — (377) 534 1,290 Due in more than five years 534 — — — (534) — Total long-term funding agreements 1,256 411 — (377) — 1,290 Total funding agreements (1) $ 6,890 $ 60,257 $ 60,504 $ — $ — $ 6,643 ____________ (1) The $4 million and $7 million difference between the funding agreements carrying value shown in fair value table for December 31, 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 Year Ended December 31, 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 December 31, 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 3,450 — — — — 4,600 Due in more than five years 800 1,359 — — — (40) 2,119 Total long-term funding agreements 1,950 4,809 — — — (40) 6,719 Total funding agreements (1) $ 1,950 $ 4,809 $ — $ — $ — $ (40) $ 6,719 _____________ |
REDEEMABLE NONCONTROLLING INT_2
REDEEMABLE NONCONTROLLING INTEREST (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Noncontrolling Interest [Abstract] | |
Redeemable Noncontrolling Interest | The changes in the components of redeemable noncontrolling interests are presented in the table that follows: Year Ended December 31, 2021 2020 2019 (in millions) Balance, beginning of period $ 41 $ 39 $ 39 Net earnings (loss) attributable to redeemable noncontrolling interests $ — $ 1 $ 5 Purchase/change of redeemable noncontrolling interests $ (13) $ 1 $ (5) Balance, end of period $ 28 $ 41 $ 39 |
REVENUES FROM EXTERNAL CUSTOM_2
REVENUES FROM EXTERNAL CUSTOMERS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenues Disaggregated by Product | Revenue from external customers, by product, is shown in the table that follows: Year Ended December 31, 2021 2020 2019 (in millions) Individual Variable Annuity Products Premiums $ 126 $ 165 $ 179 Fees (1) 2,364 2,555 2,615 Others 72 8 16 Total $ 2,562 $ 2,728 $ 2,810 Employer- Sponsored Premiums $ — $ — $ — Fees 611 500 477 Others 5 4 4 Total $ 616 $ 504 $ 481 Life Insurance Products Premiums $ 566 $ 587 $ 702 Fees 1,417 1,421 1,440 Others 7 23 21 Total $ 1,990 $ 2,031 $ 2,163 Employee Benefit Products Premiums $ 40 $ 36 $ 35 Fees — — — Others — 15 13 Total $ 40 $ 51 $ 48 Other Premiums $ 18 $ 18 $ 20 Fees 16 13 12 Others 10 7 2 Total $ 44 $ 38 $ 34 ______________ (1) Excludes the amortization/capitalization of unearned revenue liability of $(13) million, $(14) million and $(35) million for the years ended December 31, 2021, 2020 and 2019 , respectively. |
ORGANIZATION - Narrative (Detai
ORGANIZATION - Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2021USD ($)principalSubsidiary | Jun. 01, 2021USD ($) | Dec. 31, 2020USD ($) | |
Organization [Abstract] | |||
Number of principal subsidiaries | principalSubsidiary | 2 | ||
Entity Information [Line Items] | |||
Assets | $ 267,807,000,000 | $ 251,294,000,000 | |
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 | $ 60,000,000 | ||
Corporate Solutions Life Reinsurance Company (CS Life) | Alliance Bernstein | |||
Entity Information [Line Items] | |||
Assets | 9,500,000,000 | ||
Direct insurance liabilities ceded | 9,600,000,000 | ||
Separate account, liability, ceded | 16,900,000,000 | ||
Corporate Solutions Life Reinsurance Company (CS Life) | Alliance Bernstein | GMxB derivative features’ liability | |||
Entity Information [Line Items] | |||
Fair value | $ 5,300,000,000 |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES - Investments (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Accounting Policies [Abstract] | ||
Carrying value of COLI | $ 1,000 | $ 989 |
SIGNIFICANT ACCOUNTING POLICI_5
SIGNIFICANT ACCOUNTING POLICIES - Amortization Policy (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Average annual rate of return, gross | 7.00% |
Average annual rate of return, net | 4.70% |
Future annual rate of return, gross, maximum | 15.00% |
Future annual rate of return, net, maximum | 12.70% |
Future annual rate of return, gross, minimum | 0.00% |
Future annual rate of return, net, minimum | 2.30% |
Future annual rate of return assumption duration maximum | 5 years |
Assumed average investment yield excluding policy loans, high end | 4.50% |
Assumed average investment yield excluding policy loans, low end | 4.30% |
SIGNIFICANT ACCOUNTING POLICI_6
SIGNIFICANT ACCOUNTING POLICIES - Policyholders' Account Balances and Future Policy Benefits and Various Policies (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Liability For Future Policy Benefits Assumptions [Line Items] | |||
Percentage of life insurance liabilities calculate within traditional life interest rate range | 99.40% | ||
Capitalized Computer Software and Hosting Arrangements [Abstract] | |||
Computer software and hosting arrangements | $ 133 | $ 130 | |
Amortization of computer software and hosting arrangements | $ 46 | $ 47 | $ 36 |
Minimum | Life Insurance Liabilities | |||
Liability For Future Policy Benefits Assumptions [Line Items] | |||
Liability for future policy benefits, interest rate | 3.50% | ||
Minimum | Annuity Liabilities | |||
Liability For Future Policy Benefits Assumptions [Line Items] | |||
Liability for policyholder contract deposits, interest rate | 1.50% | ||
Maximum | Life Insurance Liabilities | |||
Liability For Future Policy Benefits Assumptions [Line Items] | |||
Liability for future policy benefits, interest rate | 6.30% | ||
Maximum | Annuity Liabilities | |||
Liability For Future Policy Benefits Assumptions [Line Items] | |||
Liability for policyholder contract deposits, interest rate | 5.40% | ||
Weighted Average | Life Insurance Liabilities | |||
Liability For Future Policy Benefits Assumptions [Line Items] | |||
Liability for future policy benefits, interest rate | 5.00% | ||
Weighted Average | Annuity Liabilities | |||
Liability For Future Policy Benefits Assumptions [Line Items] | |||
Liability for policyholder contract deposits, interest rate | 3.50% | ||
Computer Software, Intangible Asset | Minimum | |||
Capitalized Computer Software and Hosting Arrangements [Abstract] | |||
Intangible asset useful life | 3 years | ||
Computer Software, Intangible Asset | Maximum | |||
Capitalized Computer Software and Hosting Arrangements [Abstract] | |||
Intangible asset useful life | 5 years |
SIGNIFICANT ACCOUNTING POLICI_7
SIGNIFICANT ACCOUNTING POLICIES - Accounting and Consolidation of Variable Interest Entities (VIEs) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Variable Interest Entity [Line Items] | ||
Assets | $ 267,807 | $ 251,294 |
Investments | 96,680 | 102,195 |
Consolidated Limited Partnerships | ||
Variable Interest Entity [Line Items] | ||
Assets | 169 | 12 |
Non-consolidated Vairable Interest Entities | ||
Variable Interest Entity [Line Items] | ||
Assets | 245,700 | 165,800 |
Investments | 2,100 | 1,300 |
Variable interest, maximum loss exposure | 2,100 | 1,300 |
Unfunded commitments | $ 1,200 | $ 1,200 |
SIGNIFICANT ACCOUNTING POLICI_8
SIGNIFICANT ACCOUNTING POLICIES - Assumption Updates and Model Changes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Change in Accounting Estimate [Line Items] | |||
Policy charges and fee income | $ 3,391 | $ 3,464 | $ 3,487 |
Policyholders’ benefits | 2,982 | 4,951 | 4,088 |
Interest credited to policyholders’ account balances | 1,128 | 1,118 | 1,149 |
Net derivative gains (losses) | (4,685) | (1,541) | (3,831) |
Amortization of deferred policy acquisition costs, net | 456 | 1,333 | 520 |
Income (loss) from continuing operations, before income taxes | (1,870) | (1,386) | (2,463) |
Net income (loss) | (1,396) | (759) | (1,884) |
Long-term Lapses Partial Withdrawal Rates And Election Assumptions Updates | |||
Change in Accounting Estimate [Line Items] | |||
Policy charges and fee income | (32) | 33 | (11) |
Policyholders’ benefits | (100) | 1,500 | 886 |
Interest credited to policyholders’ account balances | 2 | (14) | |
Net derivative gains (losses) | (249) | 106 | (548) |
Amortization of deferred policy acquisition costs, net | (19) | 866 | (77) |
Income (loss) from continuing operations, before income taxes | (162) | (2,200) | (1,400) |
Net income (loss) | $ (128) | (1,800) | $ (1,100) |
Economic Scenario Generator | |||
Change in Accounting Estimate [Line Items] | |||
Income (loss) from continuing 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% |
INVESTMENTS - Narrative (Detail
INVESTMENTS - Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2021USD ($)issue | Dec. 31, 2020USD ($)issue | Dec. 31, 2019USD ($) | |
Net Investment Income [Line Items] | |||
Number of unrealized loss positions | issue | 1,896 | 537 | |
Debt securities exposure in single issuer greater than stated percentage of total investments | 0.60% | ||
Gross unrealized losses | $ 79,000,000 | $ 39,000,000 | |
Allowance for credit loss | 62,000,000 | 81,000,000 | |
Separate account equity investment carrying value | 44,000,000 | 43,000,000 | |
Expense in securities sold under agreement to repurchase | 2,000,000 | 2,000,000 | $ 2,000,000 |
Fixed maturities | |||
Net Investment Income [Line Items] | |||
Accrued investment income receivable | 470,000,000 | 499,000,000 | |
Accrued interest, written off | 0 | 0 | |
Amortized cost | 68,600,000,000 | 68,100,000,000 | |
Corporate | |||
Net Investment Income [Line Items] | |||
Debt securities exposure in single issuer of total investments | $ 280,000,000 | $ 338,000,000 | |
Debt securities exposure in single issuer of total investments, percent | 3.20% | 2.90% | |
Gross unrealized losses | $ 62,000,000 | $ 32,000,000 | |
Commercial mortgage loans | |||
Net Investment Income [Line Items] | |||
Accrued investment income receivable | 57,000,000 | ||
Accrued interest, written off | 0 | 0 | |
Agricultural mortgage loans | |||
Net Investment Income [Line Items] | |||
Accrued investment income receivable | 58,000,000 | ||
Accrued interest, written off | 0 | 0 | |
Individually assessed mortgage loans | |||
Net Investment Income [Line Items] | |||
Mortgage loans foreclosure probable | 0 | ||
Allowance for credit loss | 0 | ||
Commercial Mortgage Loans | |||
Net Investment Income [Line Items] | |||
Allowance for credit loss | 57,000,000 | 77,000,000 | $ 33,000,000 |
Non-accruing loans, carrying value | 14,000,000 | 0 | |
Recurring | |||
Net Investment Income [Line Items] | |||
Investment gains (losses), net | 379,000,000 | 5,340,000,000 | |
Other than investment grade | Non-investment grade | Fixed maturities | |||
Net Investment Income [Line Items] | |||
Available-for-sale securities, amortized cost basis other than investment grade | $ 2,800,000,000 | $ 2,400,000,000 | |
Percentage of available for sale securities | 4.10% | 3.60% | |
Unrealized loss on available for sale securities | $ 18,000,000 | $ 48,000,000 |
INVESTMENTS - Available-for-sal
INVESTMENTS - Available-for-sale Securities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | $ 68,636 | $ 68,136 | |
Allowance for Credit Losses | 22 | 13 | |
Gross Unrealized Gains | 4,752 | 8,338 | |
Gross Unrealized Losses | 290 | 108 | |
Fixed maturities available for sale, at fair value | 73,076 | 76,353 | |
Amortized Cost (Less Allowance for Credit Losses) | |||
Due in one year or less | 896 | ||
Due in years two through five | 13,658 | ||
Due in years six through ten | 16,486 | ||
Due after ten years | 29,199 | ||
Subtotal | 60,239 | ||
Amortized cost | 68,614 | ||
Fair Value | |||
Due in one year or less | 898 | ||
Due in years two through five | 14,164 | ||
Due in years six through ten | 17,302 | ||
Due after ten years | 32,323 | ||
Subtotal | 64,687 | ||
Fixed maturities available for sale, at fair value | 73,076 | 76,353 | |
Available For Sale Fixed Maturities Proceeds Gross Gains And Gross Losses From Sales And Other Than Temporary Impairments [Abstract] | |||
Proceeds from sales | 26,678 | 12,670 | $ 8,702 |
Gross gains on sales | 1,141 | 854 | 229 |
Gross losses on sales | (189) | (34) | (28) |
Credit losses | (16) | (13) | 0 |
Fixed Maturities - Credit Loss Impairments | |||
Balances, beginning of period | 28 | 15 | 46 |
Previously recognized impairments on securities that matured, paid, prepaid or sold | (2) | 0 | (31) |
Recognized impairments on securities impaired to fair value this period | 0 | 0 | 0 |
Credit losses recognized this period on securities for which credit losses were not previously recognized | 9 | 6 | 0 |
Additional credit losses this period on securities previously impaired | 7 | 7 | 0 |
Increases due to passage of time on previously recorded credit losses | 0 | 0 | 0 |
Accretion of previously recognized impairments due to increases in expected cash flows (for OTTI securities 2019 and prior) | 0 | 0 | 0 |
Balances, end of period | 42 | 28 | $ 15 |
Corporate | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 45,578 | 48,501 | |
Allowance for Credit Losses | 22 | 13 | |
Gross Unrealized Gains | 2,382 | 4,703 | |
Gross Unrealized Losses | 214 | 89 | |
Fixed maturities available for sale, at fair value | 47,724 | 53,102 | |
Fair Value | |||
Fixed maturities available for sale, at fair value | 47,724 | 53,102 | |
U.S. government, agencies and authorities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 13,032 | 12,644 | |
Allowance for Credit Losses | 0 | 0 | |
Gross Unrealized Gains | 2,196 | 3,304 | |
Gross Unrealized Losses | 14 | 5 | |
Fixed maturities available for sale, at fair value | 15,214 | 15,943 | |
Fair Value | |||
Fixed maturities available for sale, at fair value | 15,214 | 15,943 | |
States and political subdivisions | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 527 | 482 | |
Allowance for Credit Losses | 0 | 0 | |
Gross Unrealized Gains | 73 | 92 | |
Gross Unrealized Losses | 3 | 0 | |
Fixed maturities available for sale, at fair value | 597 | 574 | |
Fair Value | |||
Fixed maturities available for sale, at fair value | 597 | 574 | |
Foreign governments | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 1,124 | 1,011 | |
Allowance for Credit Losses | 0 | 0 | |
Gross Unrealized Gains | 42 | 98 | |
Gross Unrealized Losses | 14 | 6 | |
Fixed maturities available for sale, at fair value | 1,152 | 1,103 | |
Fair Value | |||
Fixed maturities available for sale, at fair value | 1,152 | 1,103 | |
Residential mortgage-backed | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 82 | 119 | |
Allowance for Credit Losses | 0 | 0 | |
Gross Unrealized Gains | 8 | 12 | |
Gross Unrealized Losses | 0 | 0 | |
Fixed maturities available for sale, at fair value | 90 | 131 | |
Amortized Cost (Less Allowance for Credit Losses) | |||
Without single maturity date | 82 | ||
Fair Value | |||
Without single maturity date | 90 | ||
Fixed maturities available for sale, at fair value | 90 | 131 | |
Asset-backed | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 5,904 | 3,633 | |
Allowance for Credit Losses | 0 | 0 | |
Gross Unrealized Gains | 20 | 28 | |
Gross Unrealized Losses | 19 | 5 | |
Fixed maturities available for sale, at fair value | 5,905 | 3,656 | |
Amortized Cost (Less Allowance for Credit Losses) | |||
Without single maturity date | 5,904 | ||
Fair Value | |||
Without single maturity date | 5,905 | ||
Fixed maturities available for sale, at fair value | 5,905 | 3,656 | |
Commercial mortgage-backed | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 2,348 | 1,148 | |
Allowance for Credit Losses | 0 | 0 | |
Gross Unrealized Gains | 19 | 55 | |
Gross Unrealized Losses | 26 | 0 | |
Fixed maturities available for sale, at fair value | 2,341 | 1,203 | |
Amortized Cost (Less Allowance for Credit Losses) | |||
Without single maturity date | 2,348 | ||
Fair Value | |||
Without single maturity date | 2,341 | ||
Fixed maturities available for sale, at fair value | 2,341 | 1,203 | |
Redeemable preferred stock | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 41 | 598 | |
Allowance for Credit Losses | 0 | 0 | |
Gross Unrealized Gains | 12 | 46 | |
Gross Unrealized Losses | 0 | 3 | |
Fixed maturities available for sale, at fair value | 53 | 641 | |
Amortized Cost (Less Allowance for Credit Losses) | |||
Without single maturity date | 41 | ||
Fair Value | |||
Without single maturity date | 53 | ||
Fixed maturities available for sale, at fair value | $ 53 | $ 641 |
INVESTMENTS - Net Unrealized Ga
INVESTMENTS - Net Unrealized Gains (Losses) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | $ 11,643 | $ 11,565 | $ 12,359 |
Ending balance | 8,706 | 11,643 | 11,565 |
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 | 8,230 | 3,084 | (577) |
Net investment gains (losses) arising during the period | (2,902) | 5,953 | 3,872 |
Included in Net income (loss) | (835) | (802) | (211) |
Excluded from net income (loss) | 0 | 0 | 0 |
Other | (31) | ||
Impact of net unrealized investment gains (losses) | 0 | 0 | 0 |
Net unrealized investment gains (losses) excluding OTTI losses | 4,462 | 8,235 | 3,084 |
Net unrealized investment gains (losses) with OTTI losses | 0 | (5) | 0 |
Ending balance | 4,462 | 8,230 | 3,084 |
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 | (466) | (826) | 37 |
Impact of net unrealized investment gains (losses) | 182 | 360 | (863) |
Net unrealized investment gains (losses) excluding OTTI losses | (284) | (466) | (826) |
Ending balance | (284) | (466) | (826) |
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 | (1,814) | (192) | (69) |
Impact of net unrealized investment gains (losses) | 837 | (1,623) | (123) |
Net unrealized investment gains (losses) excluding OTTI losses | (977) | (1,815) | (192) |
Ending balance | (977) | (1,814) | (192) |
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 | (1,250) | (433) | 125 |
Impact of net unrealized investment gains (losses) | 577 | (818) | (558) |
Net unrealized investment gains (losses) excluding OTTI losses | (673) | (1,251) | (433) |
Ending balance | (673) | (1,250) | (433) |
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 | 4,700 | 1,633 | (484) |
Net investment gains (losses) arising during the period | (2,902) | 5,953 | 3,872 |
Included in Net income (loss) | (835) | (802) | (211) |
Excluded from net income (loss) | 0 | 0 | 0 |
Other | (31) | ||
Impact of net unrealized investment gains (losses) | 1,596 | (2,081) | (1,544) |
Net unrealized investment gains (losses) excluding OTTI losses | 2,528 | 4,703 | 1,633 |
Net unrealized investment gains (losses) with OTTI losses | 0 | (3) | 0 |
Ending balance | 2,528 | 4,700 | 1,633 |
Fixed maturities, AFS | 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 | 0 | 0 | 0 |
Fixed maturities, AFS | 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 | 0 | 1 | 0 |
Fixed maturities, AFS | 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 | $ 0 | $ 1 | $ 0 |
INVESTMENTS - Fixed Maturities
INVESTMENTS - Fixed Maturities Available-for-sale (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less Than 12 Months, Fair Value | $ 16,263 | $ 4,669 |
Less Than 12 Months, Gross Unrealized Losses | 209 | 64 |
12 Months or Longer, Fair Value | 1,641 | 439 |
12 Months or Longer, Gross Unrealized Losses | 79 | 39 |
Total Fair Value | 17,904 | 5,108 |
Total Gross Unrealized Losses | 288 | 103 |
Corporate | ||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less Than 12 Months, Fair Value | 9,497 | 2,773 |
Less Than 12 Months, Gross Unrealized Losses | 150 | 52 |
12 Months or Longer, Fair Value | 1,301 | 332 |
12 Months or Longer, Gross Unrealized Losses | 62 | 32 |
Total Fair Value | 10,798 | 3,105 |
Total Gross Unrealized Losses | 212 | 84 |
U.S. government, agencies and authorities | ||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less Than 12 Months, Fair Value | 947 | 881 |
Less Than 12 Months, Gross Unrealized Losses | 10 | 5 |
12 Months or Longer, Fair Value | 103 | 0 |
12 Months or Longer, Gross Unrealized Losses | 4 | 0 |
Total Fair Value | 1,050 | 881 |
Total Gross Unrealized Losses | 14 | 5 |
States and political subdivisions | ||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less Than 12 Months, Fair Value | 112 | |
Less Than 12 Months, Gross Unrealized Losses | 2 | |
12 Months or Longer, Fair Value | 11 | |
12 Months or Longer, Gross Unrealized Losses | 1 | |
Total Fair Value | 123 | |
Total Gross Unrealized Losses | 3 | |
Foreign governments | ||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less Than 12 Months, Fair Value | 349 | 153 |
Less Than 12 Months, Gross Unrealized Losses | 6 | 2 |
12 Months or Longer, Fair Value | 92 | 20 |
12 Months or Longer, Gross Unrealized Losses | 8 | 4 |
Total Fair Value | 441 | 173 |
Total Gross Unrealized Losses | 14 | 6 |
Asset-backed | ||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less Than 12 Months, Fair Value | 3,843 | 809 |
Less Than 12 Months, Gross Unrealized Losses | 19 | 4 |
12 Months or Longer, Fair Value | 38 | 76 |
12 Months or Longer, Gross Unrealized Losses | 0 | 1 |
Total Fair Value | 3,881 | 885 |
Total Gross Unrealized Losses | 19 | 5 |
Commercial mortgage-backed | ||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less Than 12 Months, Fair Value | 1,515 | |
Less Than 12 Months, Gross Unrealized Losses | 22 | |
12 Months or Longer, Fair Value | 96 | |
12 Months or Longer, Gross Unrealized Losses | 4 | |
Total Fair Value | 1,611 | |
Total Gross Unrealized Losses | $ 26 | |
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 | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance, beginning of period | $ 81 | |
Balance, end of period | 62 | $ 81 |
Commercial Mortgage Loans | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance, beginning of period | 77 | 33 |
Current-period provision for expected credit losses | (20) | 44 |
Write-offs charged against the allowance | 0 | 0 |
Recoveries of amounts previously written off | 0 | 0 |
Net change in allowance | (20) | 44 |
Balance, end of period | 57 | 77 |
Agricultural Mortgage Loans | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance, beginning of period | 4 | 3 |
Current-period provision for expected credit losses | 1 | 1 |
Write-offs charged against the allowance | 0 | 0 |
Recoveries of amounts previously written off | 0 | 0 |
Net change in allowance | 1 | 1 |
Balance, end of period | $ 5 | $ 4 |
INVESTMENTS - Credit Quality (D
INVESTMENTS - Credit Quality (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Commercial Mortgage Loans | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | $ 2,157 | $ 1,615 |
Fiscal year before current fiscal year | 1,570 | 814 |
Two years before current fiscal year | 819 | 1,267 |
Three years before current fiscal year | 1,253 | 1,204 |
Four years before current fiscal year | 1,065 | 2,563 |
Prior | 4,570 | 3,028 |
Total | 11,434 | 10,491 |
Total | 11,434 | 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 More | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 0 | 0 |
Commercial Mortgage Loans | Current | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 11,434 | 10,329 |
Commercial Mortgage Loans | Greater than 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 1,143 | 1,230 |
Fiscal year before current fiscal year | 1,243 | 492 |
Two years before current fiscal year | 210 | 772 |
Three years before current fiscal year | 772 | 268 |
Four years before current fiscal year | 485 | 1,942 |
Prior | 2,218 | 1,230 |
Total | 6,071 | 5,934 |
Commercial Mortgage Loans | 1.8x to 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 185 | 227 |
Fiscal year before current fiscal year | 135 | 83 |
Two years before current fiscal year | 250 | 118 |
Three years before current fiscal year | 46 | 378 |
Four years before current fiscal year | 161 | 184 |
Prior | 372 | 329 |
Total | 1,149 | 1,319 |
Commercial Mortgage Loans | 1.5x to 1.8x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 275 | 98 |
Fiscal year before current fiscal year | 97 | 138 |
Two years before current fiscal year | 284 | 187 |
Three years before current fiscal year | 211 | 479 |
Four years before current fiscal year | 166 | 437 |
Prior | 919 | 616 |
Total | 1,952 | 1,955 |
Commercial Mortgage Loans | 1.2x to 1.5x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 264 | 60 |
Fiscal year before current fiscal year | 95 | 57 |
Two years before current fiscal year | 75 | 154 |
Three years before current fiscal year | 101 | 79 |
Four years before current fiscal year | 253 | 0 |
Prior | 701 | 658 |
Total | 1,489 | 1,008 |
Commercial Mortgage Loans | 1.0x to 1.2x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 290 | 0 |
Fiscal year before current fiscal year | 0 | 44 |
Two years before current fiscal year | 0 | 0 |
Three years before current fiscal year | 88 | 0 |
Four years before current fiscal year | 0 | 0 |
Prior | 287 | 123 |
Total | 665 | 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 | 0 | 36 |
Three years before current fiscal year | 35 | 0 |
Four years before current fiscal year | 0 | 0 |
Prior | 73 | 72 |
Total | 108 | 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 | 293 | 170 |
Prior | 992 | 505 |
Total | 1,469 | 999 |
Commercial Mortgage Loans | 50% - 70% | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 1,967 | 1,294 |
Fiscal year before current fiscal year | 1,334 | 357 |
Two years before current fiscal year | 407 | 803 |
Three years before current fiscal year | 619 | 656 |
Four years before current fiscal year | 491 | 2,190 |
Prior | 2,533 | 1,697 |
Total | 7,351 | 6,997 |
Commercial Mortgage Loans | 70% - 90% | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 190 | 321 |
Fiscal year before current fiscal year | 236 | 457 |
Two years before current fiscal year | 412 | 452 |
Three years before current fiscal year | 415 | 219 |
Four years before current fiscal year | 276 | 203 |
Prior | 972 | 538 |
Total | 2,501 | 2,190 |
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 | 35 | 5 |
Four years before current fiscal year | 5 | 0 |
Prior | 73 | 288 |
Total | 113 | 305 |
Agricultural Mortgage Loans | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 380 | 495 |
Fiscal year before current fiscal year | 480 | 264 |
Two years before current fiscal year | 230 | 333 |
Three years before current fiscal year | 255 | 259 |
Four years before current fiscal year | 206 | 360 |
Prior | 1,093 | 1,021 |
Total | 2,644 | 2,732 |
Total | 2,628 | 2,732 |
Non-accruing Loans | 16 | 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 | 27 | 112 |
Agricultural Mortgage Loans | 30-59 Days | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 1 | 76 |
Agricultural Mortgage Loans | 60-89 Days | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 1 | 7 |
Agricultural Mortgage Loans | 90 Days or More | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 25 | 29 |
Agricultural Mortgage Loans | Current | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 2,601 | 2,620 |
Agricultural Mortgage Loans | Greater than 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 49 | 67 |
Fiscal year before current fiscal year | 64 | 26 |
Two years before current fiscal year | 25 | 36 |
Three years before current fiscal year | 22 | 38 |
Four years before current fiscal year | 24 | 71 |
Prior | 210 | 167 |
Total | 394 | 405 |
Agricultural Mortgage Loans | 1.8x to 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 52 | 38 |
Fiscal year before current fiscal year | 37 | 35 |
Two years before current fiscal year | 25 | 14 |
Three years before current fiscal year | 14 | 15 |
Four years before current fiscal year | 14 | 20 |
Prior | 70 | 82 |
Total | 212 | 204 |
Agricultural Mortgage Loans | 1.5x to 1.8x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 43 | 117 |
Fiscal year before current fiscal year | 113 | 38 |
Two years before current fiscal year | 28 | 41 |
Three years before current fiscal year | 22 | 45 |
Four years before current fiscal year | 41 | 52 |
Prior | 193 | 209 |
Total | 440 | 502 |
Agricultural Mortgage Loans | 1.2x to 1.5x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 161 | 183 |
Fiscal year before current fiscal year | 179 | 120 |
Two years before current fiscal year | 112 | 141 |
Three years before current fiscal year | 116 | 90 |
Four years before current fiscal year | 72 | 142 |
Prior | 355 | 313 |
Total | 995 | 989 |
Agricultural Mortgage Loans | 1.0x to 1.2x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 75 | 86 |
Fiscal year before current fiscal year | 83 | 35 |
Two years before current fiscal year | 31 | 93 |
Three years before current fiscal year | 77 | 70 |
Four years before current fiscal year | 54 | 57 |
Prior | 226 | 233 |
Total | 546 | 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 | 4 | 1 |
Four years before current fiscal year | 1 | 18 |
Prior | 39 | 17 |
Total | 57 | 58 |
Agricultural Mortgage Loans | 0% - 50% | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 180 | 218 |
Fiscal year before current fiscal year | 212 | 135 |
Two years before current fiscal year | 128 | 169 |
Three years before current fiscal year | 129 | 157 |
Four years before current fiscal year | 119 | 236 |
Prior | 738 | 652 |
Total | 1,506 | 1,567 |
Agricultural Mortgage Loans | 50% - 70% | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 200 | 277 |
Fiscal year before current fiscal year | 268 | 129 |
Two years before current fiscal year | 102 | 161 |
Three years before current fiscal year | 126 | 102 |
Four years before current fiscal year | 87 | 124 |
Prior | 338 | 351 |
Total | 1,121 | 1,144 |
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 | 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 |
Mortgages Loan | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 2,537 | 2,110 |
Fiscal year before current fiscal year | 2,050 | 1,078 |
Two years before current fiscal year | 1,049 | 1,600 |
Three years before current fiscal year | 1,508 | 1,463 |
Four years before current fiscal year | 1,271 | 2,923 |
Prior | 5,663 | 4,049 |
Total | 14,078 | 13,223 |
Total | 14,062 | 13,223 |
Non-accruing Loans | 16 | 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 | 27 | 274 |
Mortgages Loan | 30-59 Days | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 1 | 238 |
Mortgages Loan | 60-89 Days | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 1 | 7 |
Mortgages Loan | 90 Days or More | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 25 | 29 |
Mortgages Loan | Current | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 14,035 | 12,949 |
Mortgages Loan | Greater than 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 1,192 | 1,297 |
Fiscal year before current fiscal year | 1,307 | 518 |
Two years before current fiscal year | 235 | 808 |
Three years before current fiscal year | 794 | 306 |
Four years before current fiscal year | 509 | 2,013 |
Prior | 2,428 | 1,397 |
Total | 6,465 | 6,339 |
Mortgages Loan | 1.8x to 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 237 | 265 |
Fiscal year before current fiscal year | 172 | 118 |
Two years before current fiscal year | 275 | 132 |
Three years before current fiscal year | 60 | 393 |
Four years before current fiscal year | 175 | 204 |
Prior | 442 | 411 |
Total | 1,361 | 1,523 |
Mortgages Loan | 1.5x to 1.8x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 318 | 215 |
Fiscal year before current fiscal year | 210 | 176 |
Two years before current fiscal year | 312 | 228 |
Three years before current fiscal year | 233 | 524 |
Four years before current fiscal year | 207 | 489 |
Prior | 1,112 | 825 |
Total | 2,392 | 2,457 |
Mortgages Loan | 1.2x to 1.5x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 425 | 243 |
Fiscal year before current fiscal year | 274 | 177 |
Two years before current fiscal year | 187 | 295 |
Three years before current fiscal year | 217 | 169 |
Four years before current fiscal year | 325 | 142 |
Prior | 1,056 | 971 |
Total | 2,484 | 1,997 |
Mortgages Loan | 1.0x to 1.2x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 365 | 86 |
Fiscal year before current fiscal year | 83 | 79 |
Two years before current fiscal year | 31 | 93 |
Three years before current fiscal year | 165 | 70 |
Four years before current fiscal year | 54 | 57 |
Prior | 513 | 356 |
Total | 1,211 | 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 | 9 | 44 |
Three years before current fiscal year | 39 | 1 |
Four years before current fiscal year | 1 | 18 |
Prior | 112 | 89 |
Total | 165 | 166 |
Mortgages Loan | 0% - 50% | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 180 | 218 |
Fiscal year before current fiscal year | 212 | 135 |
Two years before current fiscal year | 128 | 169 |
Three years before current fiscal year | 313 | 481 |
Four years before current fiscal year | 412 | 406 |
Prior | 1,730 | 1,157 |
Total | 2,975 | 2,566 |
Mortgages Loan | 50% - 70% | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 2,167 | 1,571 |
Fiscal year before current fiscal year | 1,602 | 486 |
Two years before current fiscal year | 509 | 964 |
Three years before current fiscal year | 745 | 758 |
Four years before current fiscal year | 578 | 2,314 |
Prior | 2,871 | 2,048 |
Total | 8,472 | 8,141 |
Mortgages Loan | 70% - 90% | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 190 | 321 |
Fiscal year before current fiscal year | 236 | 457 |
Two years before current fiscal year | 412 | 455 |
Three years before current fiscal year | 415 | 219 |
Four years before current fiscal year | 276 | 203 |
Prior | 989 | 556 |
Total | 2,518 | 2,211 |
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 | 35 | 5 |
Four years before current fiscal year | 5 | 0 |
Prior | 73 | 288 |
Total | $ 113 | $ 305 |
INVESTMENTS - Equity Securities
INVESTMENTS - Equity Securities (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Investments, Debt and Equity Securities [Abstract] | |
Net investment gains (losses) recognized during the period on securities held at the end of the period | $ 9 |
Net investment gains (losses) recognized on securities sold during the period | (2) |
Unrealized and realized gains (losses) on equity securities | $ 7 |
INVESTMENTS - Trading Securitie
INVESTMENTS - Trading Securities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |||
Net investment gains (losses) recognized during the period on securities held at the end of the period | $ (264) | $ 96 | $ 422 |
Net investment gains (losses) recognized on securities sold during the period | 206 | 10 | 7 |
Unrealized and realized gains (losses) on trading securities | (58) | 106 | 429 |
Interest and dividend income from trading securities | 92 | 206 | 283 |
Net investment income (loss) from trading securities | $ 34 | $ 312 | $ 712 |
INVESTMENTS - Net Investment In
INVESTMENTS - Net Investment Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Net Investment Income [Line Items] | |||
Investment income | $ 3,655 | $ 3,347 | $ 3,442 |
Investment expenses | (172) | (139) | (144) |
Net investment income (loss) | 3,483 | 3,208 | 3,298 |
Fixed maturities | |||
Net Investment Income [Line Items] | |||
Investment income | 2,293 | 2,193 | 1,902 |
Mortgage loans on real estate | |||
Net Investment Income [Line Items] | |||
Investment income | 547 | 516 | 540 |
Other equity investments | |||
Net Investment Income [Line Items] | |||
Investment income | 525 | 79 | 72 |
Policy loans | |||
Net Investment Income [Line Items] | |||
Investment income | 209 | 198 | 198 |
Trading securities | |||
Net Investment Income [Line Items] | |||
Investment income | 34 | 312 | 712 |
Other investment income | |||
Net Investment Income [Line Items] | |||
Investment income | $ 47 | $ 49 | $ 18 |
INVESTMENTS - Investment Gains
INVESTMENTS - Investment Gains (Losses), Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Net Investment Income [Line Items] | |||
Investment gains (losses), net | $ 853 | $ 787 | $ 206 |
Fixed maturities | |||
Net Investment Income [Line Items] | |||
Investment gains (losses), net | 834 | 801 | 203 |
Mortgage loans on real estate | |||
Net Investment Income [Line Items] | |||
Investment gains (losses), net | 20 | (45) | (1) |
Other equity investments | |||
Net Investment Income [Line Items] | |||
Investment gains (losses), net | 0 | 30 | 3 |
Other | |||
Net Investment Income [Line Items] | |||
Investment gains (losses), net | $ (1) | $ 1 | $ 1 |
DERIVATIVES - Derivatives by Ca
DERIVATIVES - Derivatives by Category (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Designated for hedge accounting | Cash flow hedge | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 1,876 | $ 957 |
Derivative Assets | 7 | 0 |
Derivative Liabilities | 437 | 219 |
Not designated for hedge accounting | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 79,394 | 104,700 |
Derivative Assets | 12,303 | 9,186 |
Derivative Liabilities | 11,261 | 8,051 |
Currency Swaps | Designated for hedge accounting | Cash flow hedge | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 921 | 0 |
Derivative Assets | 7 | 0 |
Derivative Liabilities | 42 | 0 |
Currency Swaps | Not designated for hedge accounting | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 541 | 347 |
Derivative Assets | 1 | 0 |
Derivative Liabilities | 0 | 0 |
Swaps | Designated for hedge accounting | Cash flow hedge | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 955 | 957 |
Derivative Assets | 0 | 0 |
Derivative Liabilities | 395 | 219 |
Swaps | Not designated for hedge accounting | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 1,876 | 22,816 |
Derivative Assets | 0 | 551 |
Derivative Liabilities | 45 | 434 |
Futures | Not designated for hedge accounting | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 2,213 | 4,267 |
Derivative Assets | 0 | 0 |
Derivative Liabilities | 0 | 0 |
Swaps | Not designated for hedge accounting | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 13,310 | 22,404 |
Derivative Assets | 5 | 6 |
Derivative Liabilities | 0 | 0 |
Options | Not designated for hedge accounting | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 48,380 | 35,786 |
Derivative Assets | 12,015 | 8,383 |
Derivative Liabilities | 5,059 | 3,715 |
Futures | Not designated for hedge accounting | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 12,455 | 18,161 |
Derivative Assets | 0 | 0 |
Derivative Liabilities | 0 | 0 |
Swaptions | Not designated for hedge accounting | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 0 | 0 |
Derivative Assets | 0 | 0 |
Derivative Liabilities | 0 | 0 |
Credit default swaps | Not designated for hedge accounting | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 619 | 919 |
Derivative Assets | 2 | 8 |
Derivative Liabilities | 3 | 1 |
Currency forwards | Not designated for hedge accounting | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 0 | 0 |
Derivative Assets | 0 | 0 |
Derivative Liabilities | 0 | 0 |
Margin | Not designated for hedge accounting | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 0 | 0 |
Derivative Assets | 102 | 26 |
Derivative Liabilities | 0 | 66 |
Collateral | Not designated for hedge accounting | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 0 | 0 |
Derivative Assets | 178 | 212 |
Derivative Liabilities | 6,154 | 3,835 |
Amounts due from reinsurers | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 0 | 0 |
Derivative Assets | 5,813 | 0 |
Derivative Liabilities | 0 | 0 |
GMIB reinsurance contracts | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 0 | 0 |
Derivative Assets | 2,068 | 2,859 |
Derivative Liabilities | 0 | 0 |
GMxB derivative features liability | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 0 | 0 |
Derivative Assets | 0 | 0 |
Derivative Liabilities | 8,525 | 10,936 |
SCS, SIO, MSO and IUL indexed features | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 0 | 0 |
Derivative Assets | 0 | 0 |
Derivative Liabilities | 6,641 | 4,378 |
Embedded derivatives | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 0 | 0 |
Derivative Assets | 7,881 | 2,859 |
Derivative Liabilities | 15,166 | 15,314 |
Derivative instruments including embedded derivative | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 81,270 | 105,657 |
Derivative Assets | 20,191 | 12,045 |
Derivative Liabilities | $ 26,864 | $ 23,584 |
DERIVATIVES - Financial Stateme
DERIVATIVES - Financial Statement Impact of Derivatives By Category (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Derivatives, Fair Value [Line Items] | |||
Net derivative gains (losses) | $ (4,685) | $ (1,541) | $ (3,831) |
Interest credited to policyholder's account balances | (1,128) | (1,118) | (1,149) |
Designated for hedge accounting | Cash flow hedge | |||
Derivatives, Fair Value [Line Items] | |||
Net derivative gains (losses) | (71) | (9) | 4 |
Interest credited to policyholder's account balances | (45) | 0 | 0 |
AOCI | (82) | (87) | (28) |
Not designated for hedge accounting | |||
Derivatives, Fair Value [Line Items] | |||
Net derivative gains (losses) | (3,371) | 1,939 | 656 |
Interest credited to policyholder's account balances | 0 | 0 | 0 |
AOCI | 0 | 0 | 0 |
Currency Swaps | Designated for hedge accounting | Cash flow hedge | |||
Derivatives, Fair Value [Line Items] | |||
Net derivative gains (losses) | (2) | 0 | 0 |
Interest credited to policyholder's account balances | (45) | 0 | 0 |
AOCI | 5 | 0 | 0 |
Currency Swaps | Not designated for hedge accounting | |||
Derivatives, Fair Value [Line Items] | |||
Net derivative gains (losses) | 3 | (2) | (9) |
Interest credited to policyholder's account balances | 0 | 0 | 0 |
AOCI | 0 | 0 | 0 |
Swaps | Designated for hedge accounting | Cash flow hedge | |||
Derivatives, Fair Value [Line Items] | |||
Net derivative gains (losses) | (69) | (9) | 4 |
Interest credited to policyholder's account balances | 0 | 0 | 0 |
AOCI | (87) | (87) | (28) |
Swaps | Not designated for hedge accounting | |||
Derivatives, Fair Value [Line Items] | |||
Net derivative gains (losses) | (2,316) | 2,832 | 2,033 |
Interest credited to policyholder's account balances | 0 | 0 | 0 |
AOCI | 0 | 0 | 0 |
Futures | Not designated for hedge accounting | |||
Derivatives, Fair Value [Line Items] | |||
Net derivative gains (losses) | (607) | (955) | (1,294) |
Interest credited to policyholder's account balances | 0 | 0 | 0 |
AOCI | 0 | 0 | 0 |
Swaps | Not designated for hedge accounting | |||
Derivatives, Fair Value [Line Items] | |||
Net derivative gains (losses) | (3,608) | (3,353) | (2,405) |
Interest credited to policyholder's account balances | 0 | 0 | 0 |
AOCI | 0 | 0 | 0 |
Options | Not designated for hedge accounting | |||
Derivatives, Fair Value [Line Items] | |||
Net derivative gains (losses) | 3,883 | 1,663 | 2,211 |
Interest credited to policyholder's account balances | 0 | 0 | 0 |
AOCI | 0 | 0 | 0 |
Futures | Not designated for hedge accounting | |||
Derivatives, Fair Value [Line Items] | |||
Net derivative gains (losses) | (727) | 1,745 | 139 |
Interest credited to policyholder's account balances | 0 | 0 | 0 |
AOCI | 0 | 0 | 0 |
Swaptions | Not designated for hedge accounting | |||
Derivatives, Fair Value [Line Items] | |||
Net derivative gains (losses) | 0 | 9 | (35) |
Interest credited to policyholder's account balances | 0 | 0 | 0 |
AOCI | 0 | 0 | 0 |
Credit default swaps | Not designated for hedge accounting | |||
Derivatives, Fair Value [Line Items] | |||
Net derivative gains (losses) | 1 | 0 | 16 |
Interest credited to policyholder's account balances | 0 | 0 | 0 |
AOCI | 0 | 0 | 0 |
Currency forwards | Not designated for hedge accounting | |||
Derivatives, Fair Value [Line Items] | |||
Net derivative gains (losses) | 0 | 0 | 0 |
Interest credited to policyholder's account balances | 0 | 0 | 0 |
AOCI | 0 | 0 | 0 |
Margin | Not designated for hedge accounting | |||
Derivatives, Fair Value [Line Items] | |||
Net derivative gains (losses) | 0 | 0 | 0 |
Interest credited to policyholder's account balances | 0 | 0 | 0 |
AOCI | 0 | 0 | 0 |
Collateral | Not designated for hedge accounting | |||
Derivatives, Fair Value [Line Items] | |||
Net derivative gains (losses) | 0 | 0 | 0 |
Interest credited to policyholder's account balances | 0 | 0 | 0 |
AOCI | 0 | 0 | 0 |
Amounts due from reinsurers | |||
Derivatives, Fair Value [Line Items] | |||
Net derivative gains (losses) | 517 | 0 | 0 |
Interest credited to policyholder's account balances | 0 | 0 | 0 |
AOCI | 0 | 0 | 0 |
GMIB reinsurance contracts | |||
Derivatives, Fair Value [Line Items] | |||
Net derivative gains (losses) | (777) | 472 | 500 |
Interest credited to policyholder's account balances | 0 | 0 | 0 |
AOCI | 0 | 0 | 0 |
GMxB derivative features liability | |||
Derivatives, Fair Value [Line Items] | |||
Net derivative gains (losses) | 2,792 | (2,238) | (2,439) |
Interest credited to policyholder's account balances | 0 | 0 | 0 |
AOCI | 0 | 0 | 0 |
SCS, SIO, MSO and IUL indexed features | |||
Derivatives, Fair Value [Line Items] | |||
Net derivative gains (losses) | (3,760) | (1,693) | (2,552) |
Interest credited to policyholder's account balances | 0 | 0 | 0 |
AOCI | 0 | 0 | 0 |
Embedded derivatives | |||
Derivatives, Fair Value [Line Items] | |||
Net derivative gains (losses) | (1,228) | (3,459) | (4,491) |
Interest credited to policyholder's account balances | 0 | 0 | 0 |
AOCI | 0 | 0 | 0 |
Derivative instruments including embedded derivative | |||
Derivatives, Fair Value [Line Items] | |||
Net derivative gains (losses) | (4,670) | (1,529) | (3,831) |
Interest credited to policyholder's account balances | (45) | 0 | 0 |
AOCI | (82) | (87) | $ (28) |
Investment fees | $ 15 | $ 12 |
DERIVATIVES - Rollforward for C
DERIVATIVES - Rollforward for Cash Flows Hedges in AOCI (Details) - Cash flow hedges recognized in AOCI - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Balance, beginning of period | $ (126) | $ (38) | $ (10) |
Amount recorded in AOCI | (218) | (108) | (45) |
Amount reclassified from AOCI to income | 136 | 20 | 17 |
Ending Balance, September 30 | (208) | (126) | (38) |
Currency Swaps | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Amount recorded in AOCI | (35) | 0 | 0 |
Amount reclassified from AOCI to income | 40 | 0 | 0 |
Interest Swaps | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Amount recorded in AOCI | (183) | (108) | (45) |
Amount reclassified from AOCI to income | $ 96 | $ 20 | $ 17 |
DERIVATIVES - Narrative (Detail
DERIVATIVES - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Derivative [Line Items] | ||
Cash and securities collateral for derivative contract | $ 6,200 | $ 3,800 |
Cash and securities collateral | 178 | 212 |
S&P 500, Russell 1000, NASDAQ 100 and Emerging Market Indices | ||
Derivative [Line Items] | ||
Initial margin requirements | 90 | 135 |
Us Treasury Notes Ultra Long Bonds And Euro Dollar | ||
Derivative [Line Items] | ||
Initial margin requirements | 196 | 263 |
Euro Stoxx, FTSE100, Topix, ASX200 and EAFE Indices | ||
Derivative [Line Items] | ||
Initial margin requirements | $ 16 | $ 35 |
DERIVATIVES - Offsetting of Fin
DERIVATIVES - Offsetting of Financial Assets and Liabilities and Derivative Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Derivative [Member] | ||
Assets | ||
Gross Amount Recognized | $ 12,309 | $ 9,186 |
Gross Amount Offset in the Balance Sheets | 10,724 | 8,206 |
Net Amount Presented in the Balance Sheets | 1,585 | 980 |
Gross Amount not Offset in the Balance Sheets | (961) | (53) |
Net Amount | 624 | 927 |
Liabilities | ||
Gross Amount Recognized | 10,738 | 8,218 |
Gross Amount Offset in the Balance Sheets | 10,724 | 8,206 |
Net Amount Presented in the Balance Sheets | 14 | 12 |
Gross Amount not Offset in the Balance Sheets | 0 | 0 |
Net Amount | 14 | 12 |
Other financial assets | ||
Assets | ||
Gross Amount Recognized | 1,325 | 1,403 |
Gross Amount Offset in the Balance Sheets | 0 | 0 |
Net Amount Presented in the Balance Sheets | 1,325 | 1,403 |
Gross Amount not Offset in the Balance Sheets | 0 | 0 |
Net Amount | 1,325 | 1,403 |
Other invested assets | ||
Assets | ||
Gross Amount Recognized | 13,634 | 10,589 |
Gross Amount Offset in the Balance Sheets | 10,724 | 8,206 |
Net Amount Presented in the Balance Sheets | 2,910 | 2,383 |
Gross Amount not Offset in the Balance Sheets | (961) | (53) |
Net Amount | 1,949 | 2,330 |
Other financial liabilities | ||
Liabilities | ||
Gross Amount Recognized | 2,064 | 1,568 |
Gross Amount Offset in the Balance Sheets | 0 | 0 |
Net Amount Presented in the Balance Sheets | 2,064 | 1,568 |
Gross Amount not Offset in the Balance Sheets | 0 | 0 |
Net Amount | 2,064 | 1,568 |
Other liabilities | ||
Liabilities | ||
Gross Amount Recognized | 12,802 | 9,786 |
Gross Amount Offset in the Balance Sheets | 10,724 | 8,206 |
Net Amount Presented in the Balance Sheets | 2,078 | 1,580 |
Gross Amount not Offset in the Balance Sheets | 0 | 0 |
Net Amount | $ 2,078 | $ 1,580 |
CLOSED BLOCK - Summarized Finan
CLOSED BLOCK - Summarized Financial Information for Closed Block (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Closed Block Liabilities: | ||||
Future policy benefits, policyholders’ account balances and other | $ 5,928 | $ 6,201 | ||
Policyholder dividend obligation | 0 | 160 | $ 2 | $ 0 |
Other liabilities | 39 | 39 | ||
Total Closed Block liabilities | 5,967 | 6,400 | ||
Assets Designated to the Closed Block: | ||||
Fixed maturities AFS, at fair value (amortized cost of $3,185 and $3,359) (allowance for credit losses of $0 and $0) | 3,390 | 3,718 | ||
Mortgage loans on real estate (net of allowance for credit losses of $4 and $6) | 1,771 | 1,773 | ||
Policy loans | 602 | 648 | ||
Cash and other invested assets | 63 | 28 | ||
Other assets | 90 | 169 | ||
Total assets designated to the Closed Block | 5,916 | 6,336 | ||
Excess of Closed Block liabilities over assets designated to the Closed Block | 51 | 64 | ||
Amounts included in AOCI: | ||||
Net unrealized investment gains (losses), net of policyholders’ dividend obligation: $0 and $160; and net of income tax: $(43) and $(42) | 172 | 167 | ||
Maximum future earnings to be recognized from Closed Block assets and liabilities | 223 | 231 | ||
Fixed maturities, available for sale, amortized cost | 3,185 | 3,359 | ||
Fixed maturities available-for-sale, allowance for credit losses | 0 | 0 | ||
Mortgage loans, credit losses | 4 | 6 | ||
Policyholder dividend obligation | 0 | 160 | $ 2 | $ 0 |
Closed block operations, income taxes | $ (43) | $ (42) |
CLOSED BLOCK - Revenues and Exp
CLOSED BLOCK - Revenues and Expenses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues: | |||
Premiums and other income | $ 144 | $ 157 | $ 182 |
Net investment income (loss) | 237 | 251 | 278 |
Investment gains (losses), net | 4 | 0 | (1) |
Total revenues | 385 | 408 | 459 |
Benefits and Other Deductions: | |||
Policyholders’ benefits and dividends | 372 | 399 | 439 |
Other operating costs and expenses | 3 | 1 | 2 |
Total benefits and other deductions | 375 | 400 | 441 |
Net income (loss), before income taxes | 10 | 8 | 18 |
Income tax (expense) benefit | (2) | (2) | (2) |
Net income (loss) | $ 8 | $ 6 | $ 16 |
CLOSED BLOCK - Reconciliation o
CLOSED BLOCK - Reconciliation of Policyholder Dividend Obligation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Movement in Closed Block Dividend Obligation [Roll Forward] | |||
Beginning balance | $ 160 | $ 2 | $ 0 |
Unrealized investment gains (losses) | (160) | 158 | 2 |
Ending balance | $ 0 | $ 160 | $ 2 |
DAC AND POLICYHOLDER BONUS IN_3
DAC AND POLICYHOLDER BONUS INTEREST CREDITS - Rollforward of DAC Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||
Balance, beginning of year | $ 3,816 | $ 4,222 | $ 4,959 |
Balance, beginning of year | 3,816 | 4,225 | |
Capitalization of commissions, sales and issue expenses | 724 | 564 | 646 |
Amortization: | |||
Impact of assumptions updates and model changes | 19 | (866) | 77 |
All other | (475) | (467) | (597) |
Total amortization | (456) | (1,333) | (520) |
Change in unrealized investment gains (losses) | 183 | 360 | (863) |
Balance, end of Year | 4,267 | 3,816 | 4,222 |
Balance, end of year | 3,816 | 4,225 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Deferred policy acquisition costs | $ 4,267 | 3,816 | 4,222 |
Accounting Standards Update 2016-13 | |||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||
Balance, beginning of year | $ 3 | ||
Amortization: | |||
Balance, end of Year | 3 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Deferred policy acquisition costs | $ 3 |
DAC AND POLICYHOLDER BONUS IN_4
DAC AND POLICYHOLDER BONUS INTEREST CREDITS - Rollforward of DAC Credits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Changes in the deferred asset for contractholder bonus interest credits | |||
Balance, beginning of year | $ 405 | $ 431 | $ 448 |
Amortization charged to income | (44) | (26) | (17) |
Balance, end of year | $ 361 | $ 405 | $ 431 |
FAIR VALUE DISCLOSURES - Schedu
FAIR VALUE DISCLOSURES - Schedules Of Assets And Liabilities Measured On Recurring Basis (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Assets: | ||
Fixed maturities available for sale, at fair value | $ 73,076 | $ 76,353 |
Amounts due from reinsurer | 5,813 | 0 |
Recurring | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 73,076 | 76,353 |
Other equity investments | 682 | 15 |
Trading securities | 379 | 5,340 |
Other invested assets: | 6,494 | 4,674 |
Cash equivalents | 1,382 | 1,470 |
Amounts due from reinsurer | 5,813 | |
GMIB reinsurance contracts asset | 2,068 | 2,859 |
Separate Accounts assets | 143,306 | 132,775 |
Total Assets | 233,200 | 223,486 |
Liabilities: | ||
Total Liabilities | 15,166 | 15,314 |
Recurring | Level 1 | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 0 | 402 |
Other equity investments | 243 | 13 |
Trading securities | 193 | 285 |
Other invested assets: | 0 | 0 |
Cash equivalents | 1,109 | 1,183 |
Amounts due from reinsurer | 0 | |
GMIB reinsurance contracts asset | 0 | 0 |
Separate Accounts assets | 140,740 | 130,106 |
Total Assets | 142,285 | 131,989 |
Liabilities: | ||
Total Liabilities | 0 | 0 |
Recurring | Level 2 | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 71,520 | 74,205 |
Other equity investments | 434 | 0 |
Trading securities | 186 | 5,055 |
Other invested assets: | 6,486 | 4,661 |
Cash equivalents | 273 | 287 |
Amounts due from reinsurer | 0 | |
GMIB reinsurance contracts asset | 0 | 0 |
Separate Accounts assets | 2,565 | 2,668 |
Total Assets | 81,464 | 86,876 |
Liabilities: | ||
Total Liabilities | 6,641 | 4,378 |
Recurring | Level 3 | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 1,556 | 1,746 |
Other equity investments | 5 | 2 |
Trading securities | 0 | 0 |
Other invested assets: | 8 | 13 |
Cash equivalents | 0 | 0 |
Amounts due from reinsurer | 5,813 | |
GMIB reinsurance contracts asset | 2,068 | 2,859 |
Separate Accounts assets | 1 | 1 |
Total Assets | 9,451 | 4,621 |
Liabilities: | ||
Total Liabilities | 8,525 | 10,936 |
Recurring | NAV | ||
Assets: | ||
Separate Accounts assets | 404 | 356 |
Corporate | Recurring | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 47,724 | 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 | 46,231 | 51,415 |
Corporate | Recurring | Level 3 | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 1,493 | 1,687 |
U.S. Treasury, government and agency | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 15,214 | 15,943 |
U.S. Treasury, government and agency | Recurring | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 15,214 | 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 | 15,214 | 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 | 597 | 574 |
States and political subdivisions | Recurring | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 597 | 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 | 562 | 535 |
States and political subdivisions | Recurring | Level 3 | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 35 | 39 |
Foreign governments | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 1,152 | 1,103 |
Foreign governments | Recurring | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 1,152 | 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 | 1,152 | 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 | 90 | 131 |
Residential mortgage-backed | Recurring | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 90 | 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 | 90 | 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 | 5,905 | 3,656 |
Asset-backed | Recurring | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 5,905 | 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 | 5,897 | 3,636 |
Asset-backed | Recurring | Level 3 | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 8 | 20 |
Commercial mortgage-backed | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 2,341 | 1,203 |
Commercial mortgage-backed | Recurring | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 2,341 | 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 | 2,321 | 1,203 |
Commercial mortgage-backed | Recurring | Level 3 | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 20 | 0 |
Redeemable preferred stock | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 53 | 641 |
Redeemable preferred stock | Recurring | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 53 | 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 | 53 | 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: | 0 | 83 |
Short-term investments | Recurring | Level 1 | ||
Assets: | ||
Other invested assets: | 0 | 0 |
Short-term investments | Recurring | Level 2 | ||
Assets: | ||
Other invested assets: | 0 | 82 |
Short-term investments | Recurring | Level 3 | ||
Assets: | ||
Other invested assets: | 0 | 1 |
Assets of consolidated VIEs/VOEs | Recurring | ||
Assets: | ||
Other invested assets: | 8 | 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: | 8 | 12 |
Swaps | Recurring | ||
Assets: | ||
Other invested assets: | (469) | (96) |
Swaps | Recurring | Level 1 | ||
Assets: | ||
Other invested assets: | 0 | 0 |
Swaps | Recurring | Level 2 | ||
Assets: | ||
Other invested assets: | (469) | (96) |
Swaps | Recurring | Level 3 | ||
Assets: | ||
Other invested assets: | 0 | 0 |
Credit default swaps | Recurring | ||
Assets: | ||
Other invested assets: | (1) | 7 |
Credit default swaps | Recurring | Level 1 | ||
Assets: | ||
Other invested assets: | 0 | 0 |
Credit default swaps | Recurring | Level 2 | ||
Assets: | ||
Other invested assets: | (1) | 7 |
Credit default swaps | Recurring | Level 3 | ||
Assets: | ||
Other invested assets: | 0 | 0 |
Options | Recurring | ||
Assets: | ||
Other invested assets: | 6,956 | 4,668 |
Options | Recurring | Level 1 | ||
Assets: | ||
Other invested assets: | 0 | 0 |
Options | Recurring | Level 2 | ||
Assets: | ||
Other invested assets: | 6,956 | 4,668 |
Options | Recurring | Level 3 | ||
Assets: | ||
Other invested assets: | 0 | 0 |
GMxB derivative features’ liability | Recurring | ||
Liabilities: | ||
Liabilities | 8,525 | 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 | 8,525 | 10,936 |
SCS, SIO, MSO and IUL indexed features’ liability | Recurring | ||
Liabilities: | ||
Liabilities | 6,641 | 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 | 6,641 | 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 | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Fair value adjustments on GMIB asset | $ 148 | $ 160 |
Fair value adjustments on amounts due from reinsurers | 210 | |
AFS fixed maturities transferred from Level 3 to Level 2 | 713 | 103 |
AFS fixed maturities transferred from Level 2 to Level 3 | $ 27 | $ 184 |
AFS fixed maturities transferred between Level 2 and 3 (percentage) | 8.50% | 2.50% |
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 | $ 430 | $ 586 |
FAIR VALUE DISCLOSURES - Fair V
FAIR VALUE DISCLOSURES - Fair Value Measurement Reconciliation For All Levels (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Net investment income (loss) | |||
Transfers into level 3 | $ 27 | $ 184 | |
Transfers out of Level 3 | (713) | (103) | |
Amounts Due from Reinsurers | |||
Net investment income (loss) | |||
Nonperformance risk | (19) | 0 | |
GMIB reinsurance contract asset | |||
Net investment income (loss) | |||
Nonperformance risk | (26) | 14 | |
GMxB Derivative Features Liability | |||
Net investment income (loss) | |||
Nonperformance risk | (217) | (758) | |
Level 3 | Corporate | |||
Net investment income (loss) | |||
Beginning Balance | 1,687 | 1,246 | $ 1,174 |
Net investment income (loss) | 5 | 4 | 4 |
Investment gains (losses), net | (16) | (16) | 0 |
Total realized and unrealized gains (losses) | (11) | (12) | 4 |
Other comprehensive income (loss) | 34 | (17) | 5 |
Purchases | 937 | 513 | 273 |
Sales | (468) | (224) | (120) |
Activity related to consolidated VIEs/VOEs | 0 | ||
Transfers into level 3 | 27 | 184 | 14 |
Transfers out of Level 3 | (713) | (3) | (104) |
Closing Balance | 1,493 | 1,687 | 1,246 |
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period | 0 | 0 | 0 |
Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period | 28 | (18) | 3 |
Level 3 | States and political subdivisions | |||
Net investment income (loss) | |||
Beginning Balance | 39 | 39 | 38 |
Net investment income (loss) | 0 | 0 | 0 |
Investment gains (losses), net | 0 | 0 | 0 |
Total realized and unrealized gains (losses) | 0 | 0 | 0 |
Other comprehensive income (loss) | (2) | 2 | 3 |
Purchases | 0 | 0 | 0 |
Sales | (2) | (2) | (2) |
Activity related to consolidated VIEs/VOEs | 0 | ||
Transfers into level 3 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 |
Closing Balance | 35 | 39 | 39 |
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period | 0 | 0 | 0 |
Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period | (2) | 2 | 3 |
Level 3 | CMBS | |||
Net investment income (loss) | |||
Beginning Balance | 0 | 0 | 0 |
Net investment income (loss) | 0 | 0 | 0 |
Investment gains (losses), net | 0 | 0 | 0 |
Total realized and unrealized gains (losses) | 0 | 0 | 0 |
Other comprehensive income (loss) | 0 | 0 | 0 |
Purchases | 20 | 0 | 0 |
Sales | 0 | 0 | 0 |
Activity related to consolidated VIEs/VOEs | |||
Transfers into level 3 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 |
Closing Balance | 20 | 0 | 0 |
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period | 0 | 0 | 0 |
Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period | 0 | 0 | 0 |
Level 3 | Asset-backed | |||
Net investment income (loss) | |||
Beginning Balance | 20 | 100 | 519 |
Net investment income (loss) | 0 | 0 | 0 |
Investment gains (losses), net | 0 | 0 | 0 |
Total realized and unrealized gains (losses) | 0 | 0 | 0 |
Other comprehensive income (loss) | 0 | 0 | 1 |
Purchases | 6 | 20 | 100 |
Sales | (18) | 0 | (84) |
Activity related to consolidated VIEs/VOEs | 0 | ||
Transfers into level 3 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | (100) | (436) |
Closing Balance | 8 | 20 | 100 |
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period | 0 | 0 | 0 |
Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period | 0 | 0 | 0 |
Level 3 | Trading Securities, at Fair Value | |||
Net investment income (loss) | |||
Beginning Balance | 0 | 0 | 29 |
Net investment income (loss) | 0 | 0 | 0 |
Investment gains (losses), net | 0 | 0 | 0 |
Total realized and unrealized gains (losses) | 0 | 0 | 0 |
Other comprehensive income (loss) | 0 | 0 | 0 |
Purchases | 0 | 0 | 0 |
Sales | 0 | 0 | 0 |
Activity related to consolidated VIEs/VOEs | 0 | ||
Transfers into level 3 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | (29) |
Closing Balance | 0 | 0 | 0 |
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period | 0 | 0 | 0 |
Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period | 0 | 0 | 0 |
Level 3 | Other Equity Investments | |||
Net investment income (loss) | |||
Beginning Balance | 15 | 16 | 19 |
Net investment income (loss) | 2 | 0 | 0 |
Investment gains (losses), net | 0 | 0 | 0 |
Total realized and unrealized gains (losses) | 2 | 0 | 0 |
Purchases | 1 | 3 | 0 |
Sales | (1) | 0 | 0 |
Settlements | 0 | 0 | 0 |
Other | 0 | ||
Change in estimate | 0 | ||
Activity related to consolidated VIEs/VOEs | (4) | (4) | (3) |
Transfers into level 3 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 |
Closing Balance | 13 | 15 | 16 |
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period | 2 | 0 | 0 |
Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period | 0 | 0 | 0 |
Level 3 | Amounts Due from Reinsurers | |||
Net investment income (loss) | |||
Beginning Balance | 0 | 0 | 0 |
Net investment income (loss) | 0 | 0 | |
Investment gains (losses), net | 517 | 0 | 0 |
Total realized and unrealized gains (losses) | 517 | 0 | 0 |
Purchases | 73 | 0 | 0 |
Sales | (36) | 0 | 0 |
Settlements | 0 | 0 | 0 |
Other | 5,259 | ||
Change in estimate | 0 | ||
Activity related to consolidated VIEs/VOEs | 0 | 0 | 0 |
Transfers into level 3 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 |
Closing Balance | 5,813 | 0 | 0 |
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period | 517 | 0 | 0 |
Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period | 0 | 0 | 0 |
Level 3 | GMIB reinsurance contract asset | |||
Net investment income (loss) | |||
Beginning Balance | 2,859 | 2,466 | 1,993 |
Net investment income (loss) | 0 | 0 | 0 |
Investment gains (losses), net | (777) | 472 | 500 |
Total realized and unrealized gains (losses) | (777) | 472 | 500 |
Purchases | 44 | 45 | 45 |
Sales | (58) | (79) | (72) |
Settlements | 0 | 0 | 0 |
Other | 0 | ||
Change in estimate | (45) | ||
Activity related to consolidated VIEs/VOEs | 0 | 0 | 0 |
Transfers into level 3 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 |
Closing Balance | 2,068 | 2,859 | 2,466 |
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period | (777) | 472 | 500 |
Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period | 0 | 0 | 0 |
Level 3 | Separate Accounts Assets | |||
Net investment income (loss) | |||
Beginning Balance | 1 | 0 | 21 |
Net investment income (loss) | 0 | 0 | 0 |
Investment gains (losses), net | 0 | 0 | 0 |
Total realized and unrealized gains (losses) | 0 | 0 | 0 |
Purchases | 1 | 1 | 0 |
Sales | 0 | 0 | (1) |
Settlements | 0 | 0 | (2) |
Other | 0 | ||
Change in estimate | 0 | ||
Activity related to consolidated VIEs/VOEs | 0 | 0 | 0 |
Transfers into level 3 | 0 | 0 | 0 |
Transfers out of Level 3 | (1) | 0 | (18) |
Closing Balance | 1 | 1 | 0 |
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period | 0 | 0 | 0 |
Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period | 0 | 0 | 0 |
Level 3 | GMxB Derivative Features Liability | |||
Net investment income (loss) | |||
Beginning Balance | (10,936) | (8,316) | (5,491) |
Net investment income (loss) | 0 | 0 | 0 |
Investment gains (losses), net | 2,792 | (2,238) | (2,439) |
Total realized and unrealized gains (losses) | 2,792 | (2,238) | (2,439) |
Purchases | (458) | (441) | (417) |
Sales | 77 | 59 | 31 |
Settlements | 0 | 0 | 0 |
Other | 0 | ||
Change in estimate | 0 | ||
Activity related to consolidated VIEs/VOEs | 0 | 0 | 0 |
Transfers into level 3 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 |
Closing Balance | (8,525) | (10,936) | (8,316) |
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period | 2,792 | (2,238) | (2,439) |
Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period | $ 0 | $ 0 | $ 0 |
FAIR VALUE DISCLOSURES - Quanti
FAIR VALUE DISCLOSURES - Quantitative Information About Level 3 (Details) - Level 3 $ in Millions | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) |
Corporate | Matrix pricing model | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | $ 248 | $ 28 |
Corporate | Market comparable companies | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | $ 888 | $ 1,148 |
Corporate | Spread over benchmark | Matrix pricing model | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0020 | 0.0045 |
Corporate | Spread over benchmark | Matrix pricing model | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0270 | 0.0195 |
Corporate | Spread over benchmark | Matrix pricing model | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0146 | 0.0152 |
Corporate | EBITDA multiple | Market comparable companies | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 4.9 | 3.5 |
Corporate | EBITDA multiple | Market comparable companies | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 62.3 | 33.1 |
Corporate | EBITDA multiple | Market comparable companies | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 13 | 10.8 |
Corporate | Discount rate | Market comparable companies | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.062 | 0.00056 |
Corporate | Discount rate | Market comparable companies | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.215 | 0.00284 |
Corporate | Discount rate | Market comparable companies | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.091 | 0.00086 |
Corporate | Cash flow multiples | Market comparable companies | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.5 | 1.9 |
Corporate | Cash flow multiples | Market comparable companies | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 10 | 25 |
Corporate | Cash flow multiples | Market comparable companies | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 5.5 | 6.8 |
Corporate | Loan to value | Market comparable companies | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.031 | |
Corporate | Loan to value | Market comparable companies | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.634 | |
Corporate | Loan to value | Market comparable companies | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.308 | |
Other equity investments | Market comparable companies | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | $ 4 | $ 2 |
Other equity investments | Revenue multiple | Market comparable companies | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 7.8 | 9.7 |
Other equity investments | Revenue multiple | Market comparable companies | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 10.3 | 26.4 |
Other equity investments | Revenue multiple | Market comparable companies | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 9.5 | 18.5 |
GMIB reinsurance contract asset | Discounted cash flow | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | $ 2,068 | $ 2,859 |
GMIB reinsurance contract asset | Lapse rate | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0045 | 0.00006 |
GMIB reinsurance contract asset | Lapse rate | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.2086 | 0.16 |
GMIB reinsurance contract asset | Lapse rate | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0265 | 0.00000169 |
GMIB reinsurance contract asset | Withdrawal rate | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0027 | 0 |
GMIB reinsurance contract asset | Withdrawal rate | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0866 | 0.02 |
GMIB reinsurance contract asset | Withdrawal rate | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0093 | 0.0000 |
GMIB reinsurance contract asset | Utilization rate | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0004 | 0 |
GMIB reinsurance contract asset | Utilization rate | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.006044 | 0.61 |
GMIB reinsurance contract asset | Utilization rate | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0527 | 0.00000582 |
GMIB reinsurance contract asset | Non-performance risk | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0057 | 0.0043 |
GMIB reinsurance contract asset | Non-performance risk | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0093 | 0.0085 |
GMIB reinsurance contract asset | Non-performance risk | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0060 | 0.0050 |
GMIB reinsurance contract asset | Volatility rates - Equity | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.11 | 0.07 |
GMIB reinsurance contract asset | Volatility rates - Equity | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.31 | 0.32 |
GMIB reinsurance contract asset | Volatility rates - Equity | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.000024 | 0.24 |
GMIB reinsurance contract asset | Mortality rates | Discounted cash flow | Minimum | Age 0-40 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0001 | 0.00 |
GMIB reinsurance contract asset | Mortality rates | Discounted cash flow | Minimum | Age 41-60 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0006 | 0.00 |
GMIB reinsurance contract asset | Mortality rates | Discounted cash flow | Minimum | Ages 61 - 115 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0031 | 0.0000 |
GMIB reinsurance contract asset | Mortality rates | Discounted cash flow | Maximum | Age 0-40 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0017 | 0.0000 |
GMIB reinsurance contract asset | Mortality rates | Discounted cash flow | Maximum | Age 41-60 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0053 | 0.0000 |
GMIB reinsurance contract asset | Mortality rates | Discounted cash flow | Maximum | Ages 61 - 115 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.4000 | 0.00004220 |
GMIB reinsurance contract asset | Mortality rates | Discounted cash flow | Weighted Average | Age 0-40 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0279 | 0.00000280 |
GMIB reinsurance contract asset | Mortality rates | Discounted cash flow | Weighted Average | Age 41-60 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0279 | 0.00000280 |
GMIB reinsurance contract asset | Mortality rates | Discounted cash flow | Weighted Average | Ages 61 - 115 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0279 | 0.00000280 |
Amounts due from reinsurers | Discounted cash flow | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | $ 5,813 | |
Amounts due from reinsurers | Lapse rate | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0045 | |
Amounts due from reinsurers | Lapse rate | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.2086 | |
Amounts due from reinsurers | Lapse rate | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0170 | |
Amounts due from reinsurers | Withdrawal rate | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0027 | |
Amounts due from reinsurers | Withdrawal rate | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0866 | |
Amounts due from reinsurers | Withdrawal rate | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0118 | |
Amounts due from reinsurers | Utilization rate | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0004 | |
Amounts due from reinsurers | Utilization rate | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.6044 | |
Amounts due from reinsurers | Utilization rate | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0720 | |
Amounts due from reinsurers | Non-performance risk | Discounted cash flow | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0037 | |
Amounts due from reinsurers | Non-performance risk | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0037 | |
Amounts due from reinsurers | Volatility rates - Equity | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.11 | |
Amounts due from reinsurers | Volatility rates - Equity | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.31 | |
Amounts due from reinsurers | Volatility rates - Equity | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.24 | |
Amounts due from reinsurers | Mortality rates | Discounted cash flow | Minimum | Age 0-40 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0001 | |
Amounts due from reinsurers | Mortality rates | Discounted cash flow | Minimum | Age 41-60 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0006 | |
Amounts due from reinsurers | Mortality rates | Discounted cash flow | Minimum | Ages 61 - 115 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0031 | |
Amounts due from reinsurers | Mortality rates | Discounted cash flow | Maximum | Age 0-40 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0017 | |
Amounts due from reinsurers | Mortality rates | Discounted cash flow | Maximum | Age 41-60 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0053 | |
Amounts due from reinsurers | Mortality rates | Discounted cash flow | Maximum | Ages 61 - 115 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.4000 | |
Amounts due from reinsurers | Mortality rates | Discounted cash flow | Weighted Average | Age 0-40 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0217 | |
Amounts due from reinsurers | Mortality rates | Discounted cash flow | Weighted Average | Age 41-60 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0217 | |
Amounts due from reinsurers | Mortality rates | Discounted cash flow | Weighted Average | Ages 61 - 115 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0217 | |
GMIBNLG | Discounted cash flow | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | $ 8,503 | $ 10,713 |
GMIBNLG | Lapse rate | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0104 | 0.00011 |
GMIBNLG | Lapse rate | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.2357 | 0.00257 |
GMIBNLG | Lapse rate | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0355 | 0.00000319 |
GMIBNLG | Withdrawal rate | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0027 | 0.00004 |
GMIBNLG | Withdrawal rate | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0866 | 0.02 |
GMIBNLG | Withdrawal rate | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0104 | 0.0000 |
GMIBNLG | Non-performance risk | Discounted cash flow | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0111 | 0.00960 |
GMIBNLG | Non-performance risk | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0111 | |
GMIBNLG | Mortality rates | Discounted cash flow | Minimum | Age 0-40 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0001 | 0.00 |
GMIBNLG | Mortality rates | Discounted cash flow | Minimum | Age 41-60 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0007 | 0.00 |
GMIBNLG | Mortality rates | Discounted cash flow | Minimum | Ages 61 - 115 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0044 | 0.0000 |
GMIBNLG | Mortality rates | Discounted cash flow | Maximum | Age 0-40 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0019 | 0.0000 |
GMIBNLG | Mortality rates | Discounted cash flow | Maximum | Age 41-60 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0057 | 0.0000 |
GMIBNLG | Mortality rates | Discounted cash flow | Maximum | Ages 61 - 115 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.4360 | 0.00004139 |
GMIBNLG | Mortality rates | Discounted cash flow | Weighted Average | Age 0-40 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0162 | 0.00000156 |
GMIBNLG | Mortality rates | Discounted cash flow | Weighted Average | Age 41-60 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0162 | 0.00000156 |
GMIBNLG | Mortality rates | Discounted cash flow | Weighted Average | Ages 61 - 115 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0162 | 0.00000156 |
GMIBNLG | Annuitization rate | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0003 | 0 |
GMIBNLG | Annuitization rate | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 1 | 1 |
GMIBNLG | Annuitization rate | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0524 | 0.00000551 |
GWBL/GMWB | Discounted cash flow | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | $ 99 | $ 190 |
GWBL/GMWB | Lapse rate | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0060 | 0.00 |
GWBL/GMWB | Lapse rate | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.2086 | 0.16 |
GWBL/GMWB | Lapse rate | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0265 | 0.00000169 |
GWBL/GMWB | Withdrawal rate | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0 | 0 |
GWBL/GMWB | Withdrawal rate | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0800 | 0.08 |
GWBL/GMWB | Withdrawal rate | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0093 | 0.0000 |
GWBL/GMWB | Utilization rate | Discounted cash flow | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 1 | 1 |
GWBL/GMWB | Non-performance risk | Discounted cash flow | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0111 | 0.00960 |
GWBL/GMWB | Volatility rates - Equity | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.11 | 0.07 |
GWBL/GMWB | Volatility rates - Equity | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.31 | 0.32 |
GWBL/GMWB | 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 | Discounted cash flow | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | $ (75) | $ 31 |
GIB | Lapse rate | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0060 | 0.00008 |
GIB | Lapse rate | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.2086 | 0.00000 |
GIB | Lapse rate | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0265 | 0.000169 |
GIB | Withdrawal rate | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0013 | 0 |
GIB | Withdrawal rate | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0866 | 0.02 |
GIB | Withdrawal rate | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0093 | 0.000091 |
GIB | Utilization rate | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0004 | 0 |
GIB | Utilization rate | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 1 | 1 |
GIB | Utilization rate | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0527 | 0.000582 |
GIB | Non-performance risk | Discounted cash flow | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0111 | |
GIB | Volatility rates - Equity | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.11 | 0.07 |
GIB | Volatility rates - Equity | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.31 | 0.32 |
GIB | 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 | Discounted cash flow | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | $ (3) | $ 2 |
GMAB | Lapse rate | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0060 | 0.00008 |
GMAB | Lapse rate | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.2086 | 0.16 |
GMAB | Lapse rate | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0265 | 0.000169 |
GMAB | Non-performance risk | Discounted cash flow | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0111 | 0.00960 |
GMAB | Volatility rates - Equity | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.11 | 0.07 |
GMAB | Volatility rates - Equity | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.31 | 0.32 |
GMAB | Volatility rates - Equity | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.24 | 0.24 |
FAIR VALUE DISCLOSURES - Carryi
FAIR VALUE DISCLOSURES - Carrying Values And Fair Values Of Financial Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Consolidated Amounts [Abstract] | ||
Mortgage loans on real estate | $ 14,016 | $ 13,142 |
Policy loans | 3,540 | 3,635 |
Policyholders’ liabilities: Investment contracts | 75,467 | 63,109 |
Separate Accounts liabilities | 143,912 | 133,350 |
Carrying Value | ||
Consolidated Amounts [Abstract] | ||
Mortgage loans on real estate | 14,016 | 13,142 |
Policy loans | 3,540 | 3,635 |
Loans to affiliates | 1,900 | 900 |
Policyholders’ liabilities: Investment contracts | 1,916 | 2,069 |
FHLB funding agreements | 6,647 | 6,897 |
FABN funding agreements | 6,689 | 1,939 |
Separate Accounts liabilities | 11,620 | 10,081 |
Fair Value | ||
Consolidated Amounts [Abstract] | ||
Mortgage loans on real estate | 14,291 | 13,474 |
Policy loans | 4,512 | 4,794 |
Loans to affiliates | 1,974 | 938 |
Policyholders’ liabilities: Investment contracts | 1,980 | 2,275 |
FHLB funding agreements | 6,679 | 6,990 |
FABN funding agreements | 6,626 | 1,971 |
Separate Accounts liabilities | 11,620 | 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 | 1,974 | 938 |
Policyholders’ liabilities: Investment contracts | 0 | 0 |
FHLB funding agreements | 6,679 | 6,990 |
FABN funding agreements | 6,626 | 1,971 |
Separate Accounts liabilities | 0 | 0 |
Fair Value | Level 3 | ||
Consolidated Amounts [Abstract] | ||
Mortgage loans on real estate | 14,291 | 13,474 |
Policy loans | 4,512 | 4,794 |
Loans to affiliates | 0 | 0 |
Policyholders’ liabilities: Investment contracts | 1,980 | 2,275 |
FHLB funding agreements | 0 | 0 |
FABN funding agreements | 0 | 0 |
Separate Accounts liabilities | $ 11,620 | $ 10,081 |
INSURANCE LIABILITIES - Rollfor
INSURANCE LIABILITIES - Rollforward of Liability and Reinsurance Ceded (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
GMDB Direct | |||
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross | |||
Balance, beginning of period | $ 5,093 | $ 4,775 | $ 4,657 |
Paid guarantee benefits | (461) | (495) | (438) |
Other changes in reserve | 379 | 813 | 556 |
Impact of the Venerable transaction | 0 | ||
Balance, end of period | 5,011 | 5,093 | 4,775 |
GMDB Ceded | |||
Guaranteed Minimum Death Benefit Reinsurance Ceded [Roll Forward] | |||
Balance, beginning of period | (84) | (99) | (107) |
Paid guarantee benefits | 113 | 15 | 14 |
Other changes in reserve | (90) | 0 | (6) |
Impact of the Venerable transaction | (2,176) | ||
Balance, end of period | (2,237) | (84) | (99) |
GMIB Direct | |||
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross | |||
Balance, beginning of period | 6,025 | 4,671 | 3,744 |
Paid guarantee benefits | (377) | (293) | (256) |
Other changes in reserve | 304 | 1,647 | 1,183 |
Impact of the Venerable transaction | 0 | ||
Balance, end of period | 5,952 | 6,025 | 4,671 |
GMIB Ceded | |||
Guaranteed Minimum Death Benefit Reinsurance Ceded [Roll Forward] | |||
Balance, beginning of period | (2,859) | (2,466) | (1,993) |
Paid guarantee benefits | 58 | 79 | 72 |
Other changes in reserve | 735 | (472) | (545) |
Impact of the Venerable transaction | (2,141) | ||
Balance, end of period | $ (4,207) | $ (2,859) | $ (2,466) |
INSURANCE LIABILITIES - Variabl
INSURANCE LIABILITIES - Variable Annuity Contracts with GMDB and GMIB Features (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
GMDB Ceded | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
General Account | $ 16,479 | |
Separate Accounts | 107,305 | $ 100,520 |
Total Account Values | 123,784 | |
NAR, gross | 17,184 | |
NAR, net of amounts reinsured | $ 8,997 | |
Percentage of policyholders over age 70 | 20.70% | |
GMDB Ceded | Return of Premium | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
General Account | $ 16,188 | |
Separate Accounts | 59,603 | |
Total Account Values | 75,791 | |
NAR, gross | 90 | |
NAR, net of amounts reinsured | $ 86 | |
Percentage of policyholders over age 70 | 11.70% | |
GMDB Ceded | Ratchet | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
General Account | $ 84 | |
Separate Accounts | 9,804 | |
Total Account Values | 9,888 | |
NAR, gross | 29 | |
NAR, net of amounts reinsured | $ 26 | |
Percentage of policyholders over age 70 | 51.30% | |
GMDB Ceded | Roll-Up | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
General Account | $ 51 | |
Separate Accounts | 3,412 | |
Total Account Values | 3,463 | |
NAR, gross | 1,333 | |
NAR, net of amounts reinsured | $ 937 | |
Percentage of policyholders over age 70 | 72.60% | |
GMDB Ceded | Combo | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
General Account | $ 156 | |
Separate Accounts | 34,486 | |
Total Account Values | 34,642 | |
NAR, gross | 15,732 | |
NAR, net of amounts reinsured | $ 7,948 | |
Percentage of policyholders over age 70 | 57.50% | |
GMIB | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Separate Accounts | $ 63,006 | $ 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 7 months 6 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 6 months | |
Immediate Variable Annuity | GMDB Ceded | Ratchet | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Average attained age of policyholders (in years) | 69 years 1 month 6 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 6 months | |
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) | 71 years 1 month 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 | $ 218 | |
Separate Accounts | 63,006 | |
Total Account Values | 63,224 | |
NAR, gross | 9,725 | |
NAR, net of amounts reinsured | $ 3,910 | |
Average attained age of policyholders (in years) | 68 years 8 months 12 days | |
Weighted average years remaining until annuitization (in years) | 2 years 7 months 6 days | |
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 | 26,173 | |
Total Account Values | 26,189 | |
NAR, gross | 632 | |
NAR, net of amounts reinsured | $ 202 | |
Average attained age of policyholders (in years) | 65 years | |
Weighted average years remaining until annuitization (in years) | 6 years | |
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 | $ 202 | |
Separate Accounts | 36,833 | |
Total Account Values | 37,035 | |
NAR, gross | 9,093 | |
NAR, net of amounts reinsured | $ 3,708 | |
Average attained age of policyholders (in years) | 70 years 9 months 18 days | |
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 | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Direct Liability | |||
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross | |||
Balance, beginning of period | $ 1,016 | $ 894 | $ 788 |
Paid guaranteed benefits | (84) | (40) | (20) |
Other changes in reserve | 158 | 162 | 126 |
Balance, end of period | 1,090 | 1,016 | 894 |
Reinsurance Ceded | |||
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross | |||
Balance, beginning of period | (883) | (808) | (734) |
Paid guaranteed benefits | 0 | 0 | 0 |
Other changes in reserve | (45) | (75) | (74) |
Balance, end of period | (928) | (883) | (808) |
Net | |||
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross | |||
Balance, beginning of period | 133 | 86 | 54 |
Paid guaranteed benefits | (84) | (40) | (20) |
Other changes in reserve | 113 | 87 | 52 |
Balance, end of period | 162 | 133 | $ 86 |
GMDB | |||
Fair Value, Separate Account Investment [Line Items] | |||
Separate Accounts | 107,305 | 100,520 | |
GMDB | Equity | |||
Fair Value, Separate Account Investment [Line Items] | |||
Separate Accounts | 52,744 | 46,850 | |
GMDB | Fixed income | |||
Fair Value, Separate Account Investment [Line Items] | |||
Separate Accounts | 5,384 | 5,506 | |
GMDB | Balanced | |||
Fair Value, Separate Account Investment [Line Items] | |||
Separate Accounts | 48,152 | 47,053 | |
GMDB | Other | |||
Fair Value, Separate Account Investment [Line Items] | |||
Separate Accounts | 1,025 | 1,111 | |
GMIB | |||
Fair Value, Separate Account Investment [Line Items] | |||
Separate Accounts | 63,006 | 61,186 | |
GMIB | Equity | |||
Fair Value, Separate Account Investment [Line Items] | |||
Separate Accounts | 20,009 | 18,771 | |
GMIB | Fixed income | |||
Fair Value, Separate Account Investment [Line Items] | |||
Separate Accounts | 2,505 | 2,701 | |
GMIB | Balanced | |||
Fair Value, Separate Account Investment [Line Items] | |||
Separate Accounts | 40,228 | 39,439 | |
GMIB | Other | |||
Fair Value, Separate Account Investment [Line Items] | |||
Separate Accounts | $ 264 | $ 275 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) - ft² ft² in Thousands | 1 Months Ended | 9 Months Ended | |
Dec. 31, 2021 | Sep. 30, 2021 | Dec. 31, 2020 | |
New York City, NY | |||
Lessee, Lease, Description [Line Items] | |||
Term of contract | 15 years | ||
Area of property (in sq. ft.) | 89 | 130 | |
Area of property, option to decrease (in sq. ft.) | 41 | ||
Syracuse, NY | |||
Lessee, Lease, Description [Line Items] | |||
Area of property (in sq. ft.) | 143 | ||
Lease term, additional | 5 years | ||
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Remaining lease term | 1 year | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Remaining lease term | 10 years |
LEASES - Balance Sheet Classifi
LEASES - Balance Sheet Classification (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Operating lease assets [Extensible Enumeration] | Other Assets | Other Assets |
Operating lease assets | $ 215 | $ 272 |
Operating lease liabilities [Extensible Enumeration] | Other liabilities | Other liabilities |
Operating lease liabilities | $ 278 | $ 350 |
LEASES - Lease Costs (Details)
LEASES - Lease Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | |||
Operating lease cost | $ 73 | $ 77 | $ 77 |
Variable operating lease cost | 10 | 11 | 10 |
Sublease income | (18) | (18) | (16) |
Short-term lease expense | 0 | 0 | 2 |
Net lease cost | $ 65 | $ 70 | $ 72 |
LEASES - Lease Maturities (Deta
LEASES - Lease Maturities (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Operating Leases: | ||
2022 | $ 94 | |
2023 | 83 | |
2024 | 30 | |
2025 | 26 | |
2026 | 22 | |
Thereafter | 42 | |
Total lease payments | 297 | |
Less: Interest | (19) | |
Present value of lease liabilities | $ 278 | $ 350 |
LEASES - Supplemental Lease Inf
LEASES - Supplemental Lease Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | |||
Weighted-average remaining operating lease term | 5 years | 5 years | |
Weighted-average discount rate for operating leases | 2.90% | 3.00% | |
Operating cash flows from operating leases | $ 94 | $ 94 | $ 87 |
Right-of-use assets obtained in exchange for lease obligations | $ 26 | $ 20 | $ 50 |
REINSURANCE - Effect of Reinsur
REINSURANCE - Effect of Reinsurance (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reinsurance Disclosures [Abstract] | |||
Direct premiums | $ 762 | $ 764 | $ 868 |
Reinsurance assumed | 181 | 195 | 194 |
Reinsurance ceded | (193) | (153) | (126) |
Premiums | 750 | 806 | 936 |
Direct charges and fee income | 3,962 | 2,684 | 2,721 |
Reinsurance ceded | (571) | 780 | 766 |
Policy charges and fee income | 3,391 | 3,464 | 3,487 |
Direct policyholders’ benefits | 3,553 | 5,233 | 4,298 |
Reinsurance assumed | 243 | 218 | 217 |
Reinsurance ceded | (814) | (500) | (427) |
Policyholders’ benefits | $ 2,982 | $ 4,951 | $ 4,088 |
REINSURANCE - Narrative (Detail
REINSURANCE - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | ||
Reinsurance, per life, single lives, amount retained | $ 25 | |
Reinsurance, per life, joint lives, amount retained | $ 30 | |
Reinsurance, percentage of excess reinsured | 100.00% | |
GMDB | Third-party | ||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | ||
Exposure reinsured percentage | 47.60% | 2.60% |
GMIB | Third-party | ||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | ||
Exposure reinsured percentage | 59.80% | 13.40% |
REINSURANCE - Ceded Reinsurance
REINSURANCE - Ceded Reinsurance (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | |||
Estimated net fair values of ceded GMIB reinsurance contracts, considered derivatives | $ 2,068 | $ 2,859 | |
Estimated net fair values of ceded GMIB NLG ceded reserves to Venerable | 5,813 | 0 | |
Third-party reinsurance recoverables related to insurance contracts | 12,459 | 2,245 | |
Third-party reinsurance payables related to insurance contracts | 127 | 113 | |
Reinsurance assumed reserves | 758 | 721 | |
Increase (decrease) in the fair value of the reinsurance contract asset | (791) | 393 | $ 475 |
Group Life And Health Insurance | |||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | |||
Reinsurance recoverables related to insurance contracts | 40 | 48 | |
Venerable Insurance and Annuity Company | |||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | |||
Third-party reinsurance payables related to insurance contracts | 27 | ||
Venerable Insurance and Annuity Company | A- | |||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | |||
Reinsurance recoverables related to insurance contracts | 10,335 | ||
Zurich Life Insurance Company, Ltd. | AA- | |||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | |||
Reinsurance recoverables related to insurance contracts | $ 1,318 | $ 1,421 |
RELATED PARTY TRANSACTIONS - Na
RELATED PARTY TRANSACTIONS - Narrative (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||||
Jun. 30, 2021 | Nov. 30, 2019 | Apr. 30, 2018 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Related Party Transaction [Line Items] | ||||||
Guaranteed minimum income benefit reinsurance asset, at fair value | $ 2,068,000,000 | $ 2,859,000,000 | ||||
Repayments of related party debt | 0 | 0 | $ 572,000,000 | |||
Capital contributions to foundation | 0 | 0 | 25,000,000 | |||
Variable Interest Entity, Primary Beneficiary | ||||||
Related Party Transaction [Line Items] | ||||||
Invested assets | 278,000,000 | 218,000,000 | ||||
Non-consolidated Vairable Interest Entities | ||||||
Related Party Transaction [Line Items] | ||||||
Net assets | 12,000,000,000 | 13,000,000,000 | ||||
Affiliated Entity | ||||||
Related Party Transaction [Line Items] | ||||||
Unfunded commitments | 157,000,000 | 163,000,000 | ||||
Equitable Investment Management, LLC (EIM) | ||||||
Related Party Transaction [Line Items] | ||||||
Expenses from transactions with related party | 46,000,000 | |||||
AllianceBernstein (AB) | Affiliated Entity | ||||||
Related Party Transaction [Line Items] | ||||||
Expenses from transactions with related party | 102,000,000 | 109,000,000 | 102,000,000 | |||
AllianceBernstein (AB) | Affiliated Entity | Variable Interest Entity, Primary Beneficiary | ||||||
Related Party Transaction [Line Items] | ||||||
Invested assets | 313,000,000 | 64,000,000 | ||||
AllianceBernstein (AB) | Affiliated Entity | Non-consolidated Vairable Interest Entities | ||||||
Related Party Transaction [Line Items] | ||||||
Net assets | 968,000,000 | 623,000,000 | ||||
Unfunded commitments | 126,000,000 | 90,000,000 | ||||
EQ AZ Life Re | ||||||
Related Party Transaction [Line Items] | ||||||
Guaranteed minimum income benefit reinsurance asset, at fair value | 220,000,000 | |||||
EQ AZ Life Re | Universal Life And No Lapse Guarantee Riders | ||||||
Related Party Transaction [Line Items] | ||||||
Ceded premiums | 48,000,000 | 51,000,000 | 62,000,000 | |||
Ceded claims paid | 93,000,000 | 72,000,000 | 52,000,000 | |||
Equitable Holdings | Term loan, 10 year, 3.23 percent | ||||||
Related Party Transaction [Line Items] | ||||||
Loans from affiliates | $ 1,000,000,000 | |||||
Debt instrument, term | 10 years | |||||
Related party transaction, rate (as a percent) | 3.23% | |||||
Due from related party | 1,000,000,000 | |||||
Equitable Holdings | Parent Company | EQH-AEL internal debt (one-month LIBOR 1.33%, due 2024) | ||||||
Related Party Transaction [Line Items] | ||||||
Loans from affiliates | $ 900,000,000 | |||||
Related party transaction, rate (as a percent) | 1.33% | |||||
Due from related party | 900,000,000 | 900,000,000 | ||||
Equitable Holdings | Parent Company | EQH-AEL internal debt (3.69%, due 2021) | ||||||
Related Party Transaction [Line Items] | ||||||
Loans from affiliates | $ 800,000,000 | |||||
Related party transaction, rate (as a percent) | 3.69% | |||||
Due from related party | 0 | |||||
Repayments of related party debt | 300,000,000 | 300,000,000 | ||||
Cost Sharing And General Service Agreements | ||||||
Related Party Transaction [Line Items] | ||||||
Expenses from transactions with related party | $ 30,000,000 | $ 41,000,000 | $ 73,000,000 |
RELATED PARTY TRANSACTIONS - Re
RELATED PARTY TRANSACTIONS - Revenues and Expenses Transactions (Details) - Equitable Affiliates - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Related Party Transaction [Line Items] | |||
Revenue received or accrued for: | $ 795 | $ 762 | $ 708 |
Expenses paid or accrued for: | 712 | 625 | 573 |
Investment management and administrative services provided to EQAT, EQ Premier VIP Trust, 1290 Funds and other trusts | |||
Related Party Transaction [Line Items] | |||
Revenue received or accrued for: | 757 | 724 | 669 |
Amounts received or accrued for commissions and fees earned for sale of Equitable America’s insurance products | |||
Related Party Transaction [Line Items] | |||
Revenue received or accrued for: | 38 | 38 | 39 |
Paid or accrued commission and fee expenses for sale of insurance products by Equitable Network | |||
Related Party Transaction [Line Items] | |||
Expenses paid or accrued for: | $ 712 | $ 625 | $ 573 |
EMPLOYEE BENEFIT PLANS - Narrat
EMPLOYEE BENEFIT PLANS - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Qualified Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expenses associated with plans | $ (12) | $ 9 | $ 21 |
Nonqualified Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expenses associated with plans | 23 | 32 | 47 |
Equitable 401(k) Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expenses associated with plans | $ 29 | $ 19 | $ 22 |
EMPLOYEE BENEFIT PLANS - Summar
EMPLOYEE BENEFIT PLANS - Summary of Plan (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Retirement Benefits [Abstract] | ||
Total plan assets | $ 2,395 | $ 2,341 |
Accumulated benefit obligation | $ 2,045 | $ 2,239 |
Funded status | 117.10% | 104.50% |
SHARE-BASED COMPENSATION PROG_3
SHARE-BASED COMPENSATION PROGRAMS - Summary of Compensation Expenses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total Compensation Expenses | $ 39 | $ 36 | $ 28 |
Income Tax Benefit | 8 | 7 | 10 |
Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total Compensation Expenses | 12 | 13 | 10 |
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total Compensation Expenses | 0 | 5 | 3 |
Restricted Stock Unit Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total Compensation Expenses | $ 27 | $ 18 | $ 15 |
SHARE-BASED COMPENSATION PROG_4
SHARE-BASED COMPENSATION PROGRAMS - Narrative (Details) - USD ($) shares in Thousands, $ in Thousands | May 09, 2018 | Dec. 31, 2021 |
Employee Stock Option | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 3 years | |
Employee Stock Option | Vesting tranche one | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting percentage | 33.33% | |
Employee Stock Option | Vesting tranche two | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting percentage | 33.33% | |
Employee Stock Option | Vesting tranche three | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting percentage | 33.33% | |
Performance Shares | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Potential shares earned, percent | 0.00% | |
Performance Shares | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Potential shares earned, percent | 200.00% | |
ROE Performance Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percentage of award type | 50.00% | |
TSR Performance Share Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percentage of award type | 50.00% | |
Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation cost not yet recognized | $ 97 | |
Compensation cost, recognition period | 2 months 12 days | |
Omnibus Plans | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares authorized (in shares) | 22,000 | |
Annual Awards | Restricted Stock Unit Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 3 years | |
Transaction Incentive Grant Awards | Restricted Stock Unit Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 2 years | |
Granted (in shares) | 722 | |
Vesting percentage | 50.00% | |
Transaction Incentive Grant Awards | Restricted Stock Unit Awards | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Growth rate | 130.00% | |
Transaction Incentive Grant Awards | Restricted Stock Unit Awards | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Growth rate | 150.00% | |
Transaction Incentive Grant Awards | RSU Performance Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting percentage | 50.00% | |
Transaction Incentive Grant Awards | RSU Performance Units | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 2 years | |
Transaction Incentive Grant Awards | RSU Performance Units | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 5 years | |
Parent | Restricted Stock Unit Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation cost, recognition period | 1 year 10 months 24 days | |
Unvested restricted shares and holding units (in shares) | 2,400 | |
Compensation cost not yet recognized | $ 6,000 | |
Parent | Performance Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation cost, recognition period | 1 year 6 months | |
Unvested restricted shares and holding units (in shares) | 1,200 | |
Compensation cost not yet recognized | $ 15,000 | |
Parent | Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation cost not yet recognized | $ 1,000 | |
Compensation cost, recognition period | 1 year 1 month 6 days |
SHARE-BASED COMPENSATION PROG_5
SHARE-BASED COMPENSATION PROGRAMS - Stock Option Activity (Details) - 12 months ended Dec. 31, 2021 € / shares in Units, $ / shares in Units, € in Thousands, shares in Thousands, $ in Thousands | USD ($)$ / sharesshares | USD ($)€ / shares$ / sharesshares | EUR (€)€ / sharesshares |
EQH Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Options, Number Outstanding, Beginning Balance (in shares) | 2,819 | 2,819 | |
Options granted (in shares) | 0 | 0 | |
Options exercised (in shares) | (1,005) | (1,005) | |
Options forfeited, net (in shares) | (150) | (150) | |
Options expired/reinstated (in shares) | 0 | 0 | |
Options, Number Outstanding, Ending Balance (in shares) | 1,664 | 1,664 | |
Weighted Average Exercise Price | |||
Options, Weighted Average Exercise Price, Beginning Balance (in dollars/euros per share) | $ / shares | $ 21.12 | ||
Options granted, Weighted Average Exercise Price (in dollars/euros per share) | $ / shares | 12.26 | ||
Options exercised, Weighted Average Exercise Price (in dollars/euros per share) | $ / shares | 20.51 | ||
Options forfeited, net, Weighted Average Exercise Price (in dollars/euros per share) | $ / shares | 21.88 | ||
Options expired/reinstated, Weighted Average Exercise Price (in dollars/euros per share) | $ / shares | 0 | ||
Options, Weighted Average Exercise Price, Ending Balance (in dollars/euros per share) | $ / shares | $ 21.66 | ||
Options Outstanding, Aggregate Intrinsic Value | $ | $ 5,186 | $ 5,186 | |
Weighted average remaining contractual term (in years) | 7 years 8 months 12 days | 7 years 8 months 12 days | |
Options Exercisable (in shares) | 690 | 690 | 690 |
Options Exercisable, Weighted Average Exercise Price (in dollars/euros per share) | $ / shares | $ 0 | $ 0 | |
Options Exercisable, Aggregate intrinsic value | $ | $ 2,227 | $ 2,227 | |
Weighted average remaining contractual term (in years) | 7 years 6 months 18 days | 7 years 6 months 18 days | |
AXA Ordinary Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Options, Number Outstanding, Beginning Balance (in shares) | 1,417 | 1,417 | |
Options granted (in shares) | 0 | 0 | |
Options exercised (in shares) | (601) | (601) | |
Options forfeited, net (in shares) | (86) | (86) | |
Options expired/reinstated (in shares) | 0 | 0 | |
Options, Number Outstanding, Ending Balance (in shares) | 730 | 730 | |
Weighted Average Exercise Price | |||
Options, Weighted Average Exercise Price, Beginning Balance (in dollars/euros per share) | € / shares | $ 20.09 | ||
Options granted, Weighted Average Exercise Price (in dollars/euros per share) | € / shares | 0 | ||
Options exercised, Weighted Average Exercise Price (in dollars/euros per share) | € / shares | 19.50 | ||
Options forfeited, net, Weighted Average Exercise Price (in dollars/euros per share) | € / shares | 22.59 | ||
Options expired/reinstated, Weighted Average Exercise Price (in dollars/euros per share) | € / shares | 0 | ||
Options, Weighted Average Exercise Price, Ending Balance (in dollars/euros per share) | € / shares | $ 22.44 | ||
Options Outstanding, Aggregate Intrinsic Value | € | € (2,011) | ||
Weighted average remaining contractual term (in years) | 4 years 8 months 8 days | 4 years 8 months 8 days | |
Options Exercisable (in shares) | 633 | 633 | 633 |
Options Exercisable, Weighted Average Exercise Price (in dollars/euros per share) | € / shares | € 22.44 | ||
Options Exercisable, Aggregate intrinsic value | € | € (1,744) | ||
Weighted average remaining contractual term (in years) | 4 years 6 months 7 days | 4 years 6 months 7 days |
SHARE-BASED COMPENSATION PROG_6
SHARE-BASED COMPENSATION PROGRAMS - Fair Value Stock Option Assumptions (Details) - EQH Shares - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend yield | 0.00% | 2.59% | 2.77% |
Expected volatility | 0.00% | 26.00% | 25.70% |
Risk-free interest rates | 0.00% | 1.19% | 2.49% |
Expected life in years | 0 years | 6 years | 5 years 9 months 18 days |
Weighted average fair value per option at grant date (in dollars per share) | $ 0 | $ 4.37 | $ 3.82 |
SHARE-BASED COMPENSATION PROG_7
SHARE-BASED COMPENSATION PROGRAMS - Restricted and Performance Stock Activity (Details) | 12 Months Ended |
Dec. 31, 2021$ / sharesshares | |
Holdings Restricted Stock | Restricted Stock Unit Awards | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Unvested, Beginning Balance (in shares) | shares | 2,053,036 |
Granted (in shares) | shares | 1,557,437 |
Forfeited (in shares) | shares | (166,466) |
Vested (in shares) | shares | (1,052,916) |
Unvested, Ending Balance (in shares) | shares | 2,391,091 |
Weighted-Average Grant Date Fair Value | |
Unvested, Beginning Balance, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares | $ 21.15 |
Granted, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares | 28.08 |
Forfeited, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares | 24.81 |
Vested, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares | 20.74 |
Unvested, Ending Balance, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares | $ 25.59 |
Holdings Restricted Stock | Performance Shares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Unvested, Beginning Balance (in shares) | shares | 557,455 |
Granted (in shares) | shares | 938,444 |
Forfeited (in shares) | shares | (163,708) |
Vested (in shares) | shares | (141,597) |
Unvested, Ending Balance (in shares) | shares | 1,190,594 |
Weighted-Average Grant Date Fair Value | |
Unvested, Beginning Balance, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares | $ 22.12 |
Granted, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares | 29.89 |
Forfeited, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares | 28.24 |
Vested, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares | 23.17 |
Unvested, Ending Balance, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares | $ 28.54 |
AXA Restricted Stock | Performance Shares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Unvested, Beginning Balance (in shares) | shares | 1,017,254 |
Granted (in shares) | shares | (460,094) |
Forfeited (in shares) | shares | 0 |
Vested (in shares) | shares | (504,315) |
Unvested, Ending Balance (in shares) | shares | 52,845 |
Weighted-Average Grant Date Fair Value | |
Unvested, Beginning Balance, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares | $ 21.28 |
Granted, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares | 21.28 |
Forfeited, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares | 0 |
Vested, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares | 21.28 |
Unvested, Ending Balance, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares | $ 21.28 |
INCOME TAXES - Components of In
INCOME TAXES - Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Current (expense) benefit | $ 11 | $ (112) | $ 295 |
Deferred (expense) benefit | 463 | 739 | 284 |
Total | $ 474 | $ 627 | $ 579 |
INCOME TAXES - Reconciliation o
INCOME TAXES - Reconciliation of Effective Tax Rate (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Effective Income Tax Rate Reconciliation | |||
Expected income tax (expense) benefit | $ 393 | $ 291 | $ 517 |
Non-taxable investment income | 79 | 91 | 73 |
Tax audit interest | (14) | (8) | (14) |
Tax settlements/uncertain tax position release | 0 | 231 | 0 |
Tax credits | 28 | 21 | 0 |
Other | (12) | 1 | 3 |
Total | $ 474 | $ 627 | $ 579 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Unrecognized tax benefits, increase resulting from settlements with taxing authorities | $ 231 | |||
Federal net operating loss carryforward | $ 3,400 | |||
Interest and penalties included in unrecognized tax benefits | $ 34 | 47 | $ 34 | |
Interest expense related to unrecognized tax benefits | $ 14 | $ (21) | $ 14 |
INCOME TAXES - Deferred Tax Ass
INCOME TAXES - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Components of Deferred Tax Assets [Abstract] | ||
Compensation and related benefits | $ 46 | $ 58 |
Net operating loss and credits | 732 | |
Reserves and reinsurance | 2,072 | 1,483 |
Investments | 1,071 | |
Other | 31 | |
Total | 2,881 | 2,612 |
Components of Deferred Tax Liabilities [Abstract] | ||
DAC | 685 | 606 |
Unrealized investment gains (losses) | 892 | 1,668 |
Investments | 18 | |
Other | 111 | |
Total | $ 1,595 | $ 2,385 |
INCOME TAXES - Unrecognized Def
INCOME TAXES - Unrecognized Deferred Tax Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at January 1, | $ 281 | $ 297 | $ 273 |
Additions for tax positions of prior years | 17 | 229 | 24 |
Reductions for tax positions of prior years | (3) | (250) | 0 |
Additions for tax positions of current year | 0 | 0 | 0 |
Settlements with tax authorities | 0 | 5 | 0 |
Balance at December 31, | 295 | 281 | 297 |
Unrecognized tax benefits that, if recognized, would impact the effective rate | $ 43 | $ 47 | $ 222 |
EQUITY - Components of AOCI (De
EQUITY - Components of AOCI (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Equity [Abstract] | ||
Unrealized gains (losses) on investments | $ 2,362 | $ 4,600 |
Defined benefit pension plans | (5) | (5) |
Accumulated other comprehensive income (loss) attributable to Equitable Financial | $ 2,357 | $ 4,595 |
EQUITY - Changes in AOCI (Detai
EQUITY - Changes in AOCI (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Other Comprehensive Income (Loss), Tax [Abstract] | ||||
Net unrealized gains (losses) arising during the period | $ (2,293) | $ 4,698 | $ 3,052 | |
(Gains) losses reclassified into net income (loss) during the period | (686) | (633) | (160) | |
Net unrealized gains (losses) on investments | (2,979) | 4,065 | 2,892 | |
Adjustments for policyholders’ liabilities, DAC, insurance liability loss recognition and other | 741 | (1,066) | (797) | |
Change in unrealized gains (losses), net of adjustments (net of deferred income tax expense (benefit) of $(595), $798, and $547) | [1] | (2,238) | 2,999 | 2,095 |
Reclassification to net income (loss) of amortization of net prior service credit included in net periodic cost | 0 | 0 | 2 | |
Change in defined benefit plans, (net of deferred income tax expense (benefit) of $0, $0 and $0 | 0 | 0 | 2 | |
Other comprehensive income (loss), attributable to Equitable Financial | (2,238) | 2,999 | 2,097 | |
Other Comprehensive Income (Loss), Tax, Parenthetical Disclosures [Abstract] | ||||
Deferred income taxes | (595) | 798 | 547 | |
Defined benefit plan, OCI, tax | 0 | 0 | 0 | |
Unrealized gains (losses) on investments | ||||
Other Comprehensive Income (Loss), Tax [Abstract] | ||||
Reclassification from AOCI, current period, tax | $ 182 | $ (168) | $ (42) | |
[1] | See Note 15 of the Notes to these Consolidated Financial Statements for details of change in unrealized gains (losses), net of adjustments. |
COMMITMENTS AND CONTINGENT LI_3
COMMITMENTS AND CONTINGENT LIABILITIES - Narrative (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021USD ($)saleAndDisclosurePractice | May 31, 2021USD ($) | Feb. 29, 2016USD ($)legalActionfederalAction | |
Loss Contingencies [Line Items] | |||
Unaccrued amounts of reasonably possible range of losses | $ 250 | ||
Number of sales and disclosure practices under investigation | saleAndDisclosurePractice | 457 | ||
Federal home loan bank stock | $ 311 | ||
Carrying value of collateral pledged for federal home loan bank | 12,500 | ||
Commitments by the Company to provide equity financing | 1,200 | ||
Commitments under existing mortgage loan agreements | 863 | ||
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 | ||
Sales and Disclosure Practices | |||
Loss Contingencies [Line Items] | |||
Civil monetary penalty | $ 50 |
COMMITMENTS AND CONTINGENT LI_4
COMMITMENTS AND CONTINGENT LIABILITIES - Funding Agreements (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Federal Home Loan Bank (FHLB) | ||
Restructuring Reserve [Roll Forward] | ||
Outstanding Balance, period start | $ 6,890 | |
Issued During the Period | 60,257 | |
Repaid During the Period | 60,504 | |
Long-term Agreements Maturing Within One Year | 0 | |
Long-term Agreements Maturing Within Five Years | 0 | |
Outstanding Balance, period end | 6,643 | |
Difference related to remaining amortization | 4 | $ 7 |
Funding Agreement-Backed Notes Program (FABN) | ||
Restructuring Reserve [Roll Forward] | ||
Outstanding Balance, period start | 1,950 | |
Issued During the Period | 4,809 | |
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 | (40) | |
Outstanding Balance, period end | 6,719 | |
Difference related to remaining amortization | 70 | $ 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 | 59,846 | |
Repaid During the Period | 60,504 | |
Long-term Agreements Maturing Within One Year | 377 | |
Long-term Agreements Maturing Within Five Years | 0 | |
Outstanding Balance, period end | 5,353 | |
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 | 411 | |
Repaid During the Period | 0 | |
Long-term Agreements Maturing Within One Year | (377) | |
Long-term Agreements Maturing Within Five Years | 534 | |
Outstanding Balance, period end | 1,290 | |
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 | 3,450 | |
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 | 4,600 | |
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 | (534) | |
Outstanding Balance, period end | 0 | |
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 | 1,359 | |
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 | (40) | |
Outstanding Balance, period end | 2,119 | |
Long-term funding agreements | Federal Home Loan Bank (FHLB) | ||
Restructuring Reserve [Roll Forward] | ||
Outstanding Balance, period start | 1,256 | |
Issued During the Period | 411 | |
Repaid During the Period | 0 | |
Long-term Agreements Maturing Within One Year | (377) | |
Long-term Agreements Maturing Within Five Years | 0 | |
Outstanding Balance, period end | 1,290 | |
Long-term funding agreements | Funding Agreement-Backed Notes Program (FABN) | ||
Restructuring Reserve [Roll Forward] | ||
Outstanding Balance, period start | 1,950 | |
Issued During the Period | 4,809 | |
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 | (40) | |
Outstanding Balance, period end | $ 6,719 |
INSURANCE GROUP STATUTORY FIN_2
INSURANCE GROUP STATUTORY FINANCIAL INFORMATION - Narrative (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2021 | |
Related Party Transaction [Line Items] | |||||
Insurance Groups statutory net income (loss) | $ (865,000,000) | $ 413,000,000 | $ 3,900,000,000 | ||
Statutory surplus, capital stock and asset valuation reserve | 6,500,000,000 | 6,800,000,000 | |||
Securities on deposit with such government or state agencies | 54,000,000 | ||||
Shareholder dividends | 0 | $ 2,100,000,000 | $ 1,000,000,000 | ||
Statutory accounting practices, statutory surplus, increase | 1,400,000,000 | ||||
Statutory accounting practices, statutory net income, increase | $ 1,400,000,000 | ||||
Statutory accounting practices, hedging losses amortization period | 5 years | ||||
Statutory accounting practices, statutory unassigned surplus, balance | $ 0 | ||||
Regulation Number 213 | |||||
Related Party Transaction [Line Items] | |||||
Statutory accounting practices, statutory surplus, decrease to new standard application | $ 1,200,000,000 | ||||
Statutory accounting practices, statutory net income, increase (decrease) to new standard application | 0 | ||||
Regulation Number 213 with Seperate Accounts | |||||
Related Party Transaction [Line Items] | |||||
Statutory accounting practices, statutory surplus, decrease to new standard application | 513,000,000 | ||||
Statutory accounting practices, statutory net income, increase (decrease) to new standard application | 0 | ||||
Forecast | |||||
Related Party Transaction [Line Items] | |||||
Shareholder dividends | $ 900,000,000 | ||||
EQ AZ Life Re | |||||
Related Party Transaction [Line Items] | |||||
Other restricted assets | 12,400,000,000 | ||||
Revolving Credit Facility | Holdings Revolving Credit Facility | EQ AZ Life Re | |||||
Related Party Transaction [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | $ 1,900,000,000 |
REDEEMABLE NONCONTROLLING INT_3
REDEEMABLE NONCONTROLLING INTEREST - Summary of Redeemable Noncontrolling Interest (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | |||
Balance, beginning of period | $ 41 | $ 39 | $ 39 |
Net earnings (loss) attributable to redeemable noncontrolling interests | 0 | 1 | 5 |
Purchase/change of redeemable noncontrolling interests | (13) | 1 | (5) |
Balance, end of period | $ 28 | $ 41 | $ 39 |
REVENUES FROM EXTERNAL CUSTOM_3
REVENUES FROM EXTERNAL CUSTOMERS - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue [Line Items] | |||
Total Revenues | $ 4,889 | $ 7,791 | $ 5,174 |
Individual Variable Annuity Products | |||
Disaggregation of Revenue [Line Items] | |||
Total Revenues | 2,562 | 2,728 | 2,810 |
Individual Variable Annuity Products | Premiums | |||
Disaggregation of Revenue [Line Items] | |||
Total Revenues | 126 | 165 | 179 |
Individual Variable Annuity Products | Fees | |||
Disaggregation of Revenue [Line Items] | |||
Total Revenues | 2,364 | 2,555 | 2,615 |
Amortization/capitalization of unearned revenue liability | (13) | (14) | (35) |
Individual Variable Annuity Products | Others | |||
Disaggregation of Revenue [Line Items] | |||
Total Revenues | 72 | 8 | 16 |
Employer- Sponsored | |||
Disaggregation of Revenue [Line Items] | |||
Total Revenues | 616 | 504 | 481 |
Employer- Sponsored | Premiums | |||
Disaggregation of Revenue [Line Items] | |||
Total Revenues | 0 | 0 | 0 |
Employer- Sponsored | Fees | |||
Disaggregation of Revenue [Line Items] | |||
Total Revenues | 611 | 500 | 477 |
Employer- Sponsored | Others | |||
Disaggregation of Revenue [Line Items] | |||
Total Revenues | 5 | 4 | 4 |
Life Insurance Products | |||
Disaggregation of Revenue [Line Items] | |||
Total Revenues | 1,990 | 2,031 | 2,163 |
Life Insurance Products | Premiums | |||
Disaggregation of Revenue [Line Items] | |||
Total Revenues | 566 | 587 | 702 |
Life Insurance Products | Fees | |||
Disaggregation of Revenue [Line Items] | |||
Total Revenues | 1,417 | 1,421 | 1,440 |
Life Insurance Products | Others | |||
Disaggregation of Revenue [Line Items] | |||
Total Revenues | 7 | 23 | 21 |
Employee Benefit Products | |||
Disaggregation of Revenue [Line Items] | |||
Total Revenues | 40 | 51 | 48 |
Employee Benefit Products | Premiums | |||
Disaggregation of Revenue [Line Items] | |||
Total Revenues | 40 | 36 | 35 |
Employee Benefit Products | Fees | |||
Disaggregation of Revenue [Line Items] | |||
Total Revenues | 0 | 0 | 0 |
Employee Benefit Products | Others | |||
Disaggregation of Revenue [Line Items] | |||
Total Revenues | 0 | 15 | 13 |
Other | |||
Disaggregation of Revenue [Line Items] | |||
Total Revenues | 44 | 38 | 34 |
Other | Premiums | |||
Disaggregation of Revenue [Line Items] | |||
Total Revenues | 18 | 18 | 20 |
Other | Fees | |||
Disaggregation of Revenue [Line Items] | |||
Total Revenues | 16 | 13 | 12 |
Other | Others | |||
Disaggregation of Revenue [Line Items] | |||
Total Revenues | $ 10 | $ 7 | $ 2 |
SCHEDULE I - SUMMARY OF INVES_2
SCHEDULE I - SUMMARY OF INVESTMENTS - OTHER THAN INVESTMENTS IN RELATED PARTIES (Details) $ in Millions | Dec. 31, 2021USD ($) |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | $ 92,042 |
Fair Value | 97,927 |
Carrying Value | 96,680 |
U.S. government, agencies and authorities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 13,032 |
Fair Value | 15,214 |
Carrying Value | 15,214 |
State, municipalities and political subdivisions | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 527 |
Fair Value | 597 |
Carrying Value | 597 |
Foreign governments | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 1,124 |
Fair Value | 1,152 |
Carrying Value | 1,152 |
Public utilities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 5,965 |
Fair Value | 6,260 |
Carrying Value | 6,260 |
All other corporate bonds | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 39,613 |
Fair Value | 41,464 |
Carrying Value | 41,464 |
Residential mortgage-backed | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 82 |
Fair Value | 90 |
Carrying Value | 90 |
Asset-backed | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 5,904 |
Fair Value | 5,905 |
Carrying Value | 5,905 |
Commercial mortgage-backed | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 2,348 |
Fair Value | 2,341 |
Carrying Value | 2,341 |
Redeemable preferred stock | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 41 |
Fair Value | 53 |
Carrying Value | 53 |
Fixed maturities, AFS | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 68,636 |
Fair Value | 73,076 |
Carrying Value | 73,076 |
Mortgage loans on real estate | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 14,078 |
Fair Value | 14,291 |
Carrying Value | 14,016 |
Policy loans | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 3,540 |
Fair Value | 4,512 |
Carrying Value | 3,540 |
Other equity investments | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 2,538 |
Fair Value | 2,759 |
Carrying Value | 2,759 |
Trading securities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 340 |
Fair Value | 379 |
Carrying Value | 379 |
Other invested assets | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 2,910 |
Fair Value | 2,910 |
Carrying Value | $ 2,910 |
SCHEDULE IV - REINSURANCE (Deta
SCHEDULE IV - REINSURANCE (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Life insurance in-force | |||
Gross Amount | $ 388,520 | $ 389,576 | $ 392,420 |
Ceded to Other Companies | 164,781 | 72,110 | 66,770 |
Assumed from Other Companies | 31,971 | 32,289 | 31,699 |
Net Amount | $ 255,710 | $ 349,755 | $ 357,349 |
Percentage of Amount Assumed to Net | 12.50% | 9.20% | 8.90% |
Premiums: | |||
Gross Amount | $ 762 | $ 764 | $ 868 |
Ceded to Other Companies | 193 | 153 | 126 |
Assumed from Other Companies | 181 | 195 | 194 |
Premiums | $ 750 | $ 806 | $ 936 |
Percentage of Amount Assumed to Net | 24.10% | 24.10% | 20.70% |
Life insurance and annuities | |||
Premiums: | |||
Gross Amount | $ 709 | $ 712 | $ 825 |
Ceded to Other Companies | 170 | 127 | 99 |
Assumed from Other Companies | 173 | 186 | 185 |
Premiums | $ 712 | $ 771 | $ 911 |
Percentage of Amount Assumed to Net | 24.30% | 24.10% | 20.30% |
Accident and health | |||
Premiums: | |||
Gross Amount | $ 53 | $ 52 | $ 43 |
Ceded to Other Companies | 23 | 26 | 27 |
Assumed from Other Companies | 8 | 9 | 9 |
Premiums | $ 38 | $ 35 | $ 25 |
Percentage of Amount Assumed to Net | 21.10% | 24.80% | 36.00% |