Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2022 | May 11, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Mar. 31, 2022 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Entity File Number | 033-03094 | |
Entity Central Index Key | 0000733076 | |
Entity Registrant Name | Brighthouse Life Insurance Company | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 06-0566090 | |
Entity Address, Address Line One | 11225 North Community House Road | |
Entity Address, City or Town | Charlotte | |
Entity Address, State or Province | NC | |
Entity Address, Postal Zip Code | 28277 | |
City Area Code | 980 | |
Local Phone Number | 365-7100 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 3,000 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Investments: | ||
Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $80,247 and $78,287, respectively; allowance for credit losses of $11 and $11, respectively) | $ 81,502 | $ 86,527 |
Equity securities, at estimated fair value | 75 | 95 |
Mortgage loans (net of allowance for credit losses of $127 and $123, respectively) | 21,295 | 19,787 |
Policy loans | 876 | 869 |
Limited partnerships and limited liability companies | 4,586 | 4,271 |
Short-term investments, principally at estimated fair value | 111 | 662 |
Other invested assets, principally at estimated fair value (net of allowance for credit losses of $13 and $13, respectively) | 2,570 | 3,324 |
Total investments | 111,015 | 115,535 |
Cash and cash equivalents | 3,491 | 3,904 |
Accrued investment income | 735 | 706 |
Premiums, reinsurance and other receivables (net of allowance for credit losses of $10 and $10, respectively) | 15,834 | 15,649 |
Deferred policy acquisition costs and value of business acquired | 5,060 | 4,851 |
Other assets | 376 | 385 |
Separate account assets | 96,995 | 106,225 |
Total assets | 233,506 | 247,255 |
Liabilities | ||
Future policy benefits | 41,571 | 43,589 |
Policyholder account balances | 67,182 | 66,195 |
Other policy-related balances | 3,154 | 3,153 |
Payables for collateral under securities loaned and other transactions | 6,195 | 6,253 |
Long-term debt | 840 | 841 |
Current income tax payable | 56 | 57 |
Deferred income tax liability | 198 | 981 |
Other liabilities | 4,123 | 3,850 |
Separate account liabilities | 96,995 | 106,225 |
Total liabilities | 220,314 | 231,144 |
Contingencies, Commitments and Guarantees (Note 9) | ||
Brighthouse Life Insurance Company’s stockholder’s equity: | ||
Common stock, par value $25,000 per share; 4,000 shares authorized; 3,000 shares issued and outstanding | 75 | 75 |
Additional paid-in capital | 17,773 | 17,773 |
Retained earnings (deficit) | (4,982) | (5,653) |
Accumulated other comprehensive income (loss) | 311 | 3,901 |
Total Brighthouse Life Insurance Company’s stockholder’s equity | 13,177 | 16,096 |
Noncontrolling interests | 15 | 15 |
Total equity | 13,192 | 16,111 |
Total liabilities and equity | $ 233,506 | $ 247,255 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Amortized cost of fixed maturity securities available-for-sale | $ 80,247 | $ 78,287 |
Fixed maturity securities, allowance for credit losses | 11 | 11 |
Mortgage loans valuation allowances | 127 | 123 |
Leveraged leases, allowance for credit losses | 13 | 13 |
Premiums, reinsurance and other, allowance for credit losses | $ 10 | $ 10 |
Brighthouse Life Insurance Company’s stockholder’s equity: | ||
Common stock, par value | $ 25,000 | $ 25,000 |
Common stock, shares authorized | 4,000 | 4,000 |
Common stock, shares issued | 3,000 | 3,000 |
Common stock, shares outstanding | 3,000 | 3,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Revenues | ||
Premiums | $ 161 | $ 181 |
Universal life and investment-type product policy fees | 683 | 743 |
Net investment income | 1,135 | 1,169 |
Other revenues | 112 | 96 |
Net investment gains (losses) | (67) | 12 |
Net derivative gains (losses) | 555 | (1,387) |
Total revenues | 2,579 | 814 |
Expenses | ||
Policyholder benefits and claims | 861 | 644 |
Interest credited to policyholder account balances | 284 | 290 |
Amortization of deferred policy acquisition costs and value of business acquired | 205 | 50 |
Other expenses | 386 | 424 |
Total expenses | 1,736 | 1,408 |
Income (loss) before provision for income tax | 843 | (594) |
Provision for income tax expense (benefit) | 172 | (141) |
Net income (loss) | 671 | (453) |
Less: Net income (loss) attributable to noncontrolling interests | 0 | 0 |
Net income (loss) attributable to Brighthouse Life Insurance Company | 671 | (453) |
Comprehensive income (loss) | (2,919) | (2,689) |
Less: Comprehensive income (loss) attributable to noncontrolling interests | 0 | 0 |
Comprehensive income (loss) attributable to Brighthouse Life Insurance Company | $ (2,919) | $ (2,689) |
Consolidated Statements of Equi
Consolidated Statements of Equity (Unaudited) - USD ($) $ in Millions | Total | Common Stock | Additional Paid-in Capital | Retained Earnings (Deficit) | Accumulated Other Comprehensive Income (Loss) | Brighthouse Life Insurance Company’s Stockholder’s Equity | Noncontrolling Interests |
Beginning Balance at Dec. 31, 2020 | $ 18,115 | $ 75 | $ 18,323 | $ (5,719) | $ 5,421 | $ 18,100 | $ 15 |
Net income (loss) attributable to Brighthouse Life Insurance Company | (453) | (453) | (453) | ||||
Net income (loss) | (453) | ||||||
Other comprehensive income (loss), net of income tax | (2,236) | (2,236) | (2,236) | ||||
Ending Balance at Mar. 31, 2021 | 15,426 | 75 | 18,323 | (6,172) | 3,185 | 15,411 | 15 |
Beginning Balance at Dec. 31, 2021 | 16,111 | 75 | 17,773 | (5,653) | 3,901 | 16,096 | 15 |
Net income (loss) attributable to Brighthouse Life Insurance Company | 671 | 671 | 671 | ||||
Net income (loss) | 671 | ||||||
Other comprehensive income (loss), net of income tax | (3,590) | (3,590) | (3,590) | ||||
Ending Balance at Mar. 31, 2022 | $ 13,192 | $ 75 | $ 17,773 | $ (4,982) | $ 311 | $ 13,177 | $ 15 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Cash Flows [Abstract] | ||
Net cash provided by (used in) operating activities | $ (55) | $ 80 |
Cash flows from investing activities | ||
Sales, maturities and repayments of fixed maturity securities | 3,705 | 2,595 |
Sales, maturities and repayments of equity securities | 20 | 53 |
Sales, maturities and repayments of mortgage loans | 461 | 724 |
Sales, maturities and repayments of limited partnerships and limited liability companies | 67 | 49 |
Purchases of fixed maturity securities | (5,487) | (3,945) |
Purchases of equity securities | 0 | (6) |
Purchases of mortgage loans | (1,972) | (568) |
Purchases of limited partnerships and limited liability companies | (279) | (204) |
Cash received in connection with freestanding derivatives | 1,437 | 1,012 |
Cash paid in connection with freestanding derivatives | (1,196) | (1,581) |
Net change in policy loans | (7) | 40 |
Net change in short-term investments | 551 | 1,573 |
Net change in other invested assets | (17) | 0 |
Net cash provided by (used in) investing activities | (2,717) | (258) |
Cash flows from financing activities | ||
Policyholder account balances: Deposits | 6,208 | 1,921 |
Policyholder account balances: Withdrawals | (3,714) | (682) |
Net change in payables for collateral under securities loaned and other transactions | (58) | (968) |
Long-term debt repaid | (1) | 0 |
Financing element on certain derivative instruments and other derivative related transactions, net | (76) | (67) |
Net cash provided by (used in) financing activities | 2,359 | 204 |
Change in cash, cash equivalents and restricted cash | (413) | 26 |
Cash, cash equivalents and restricted cash, beginning of period | 3,904 | 3,684 |
Cash, cash equivalents and restricted cash, end of period | 3,491 | 3,710 |
Supplemental disclosures of cash flow information | ||
Net cash paid (received) for interest | 34 | 34 |
Net cash paid (received) for income tax | $ 1 | $ (21) |
Business, Basis of Presentation
Business, Basis of Presentation and Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business, Basis of Presentation and Summary of Significant Accounting Policies | 1. Business, Basis of Presentation and Summary of Significant Accounting Policies Business “BLIC” and the “Company” refer to Brighthouse Life Insurance Company, a Delaware corporation originally incorporated in Connecticut in 1863, and its subsidiaries. Brighthouse Life Insurance Company is a wholly-owned subsidiary of Brighthouse Holdings, LLC (“BH Holdings”) and an indirect wholly-owned subsidiary of Brighthouse Financial, Inc. (“BHF” and together with its subsidiaries, “Brighthouse Financial”). BLIC offers a range of annuity and life insurance products to individuals. The Company is organized into three segments: Annuities; Life; and Run-off. In addition, the Company reports certain of its results of operations in Corporate & Other. Basis of Presentation The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to adopt accounting policies and make estimates and assumptions that affect amounts reported on the interim condensed consolidated financial statements. In applying these policies and estimates, management makes subjective and complex judgments that frequently require assumptions about matters that are inherently uncertain. Many of these policies, estimates and related judgments are common in the insurance and financial services industries; others are specific to the Company’s business and operations. Actual results could differ from these estimates. Consolidation The accompanying interim condensed consolidated financial statements include the accounts of Brighthouse Life Insurance Company and its subsidiaries, as well as partnerships and limited liability companies (“LLC”) that the Company controls. Intercompany accounts and transactions have been eliminated. The Company uses the equity method of accounting for investments in limited partnerships and LLCs when it has more than a minor ownership interest or more than a minor influence over the investee’s operations. The Company generally recognizes its share of the investee’s earnings on a three-month lag in instances where the investee’s financial information is not sufficiently timely or when the investee’s reporting period differs from the Company’s reporting period. When the Company has virtually no influence over the investee’s operations, the investment is carried at fair value. Since the Company is a member of a controlled group of affiliated companies, its results may not be indicative of those of a standalone entity. The accompanying interim condensed consolidated financial statements are unaudited and reflect all adjustments (including normal recurring adjustments) necessary to present fairly the financial position, results of operations and cash flows for the interim periods presented in conformity with GAAP. Interim results are not necessarily indicative of full year performance. The December 31, 2021 consolidated balance sheet data was derived from audited consolidated financial statements included in Brighthouse Life Insurance Company’s Annual Report on Form 10-K for the year ended December 31, 2021 (the “2021 Annual Report”), which include all disclosures required by GAAP. Therefore, these interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements of the Company included in the 2021 Annual Report. Adoption of New Accounting Pronouncements Changes to GAAP are established by the Financial Accounting Standards Board (“FASB”) in the form of accounting standards updates (“ASU”) to the FASB Accounting Standards Codification. The Company considers the applicability and impact of all ASUs. There were no significant ASUs adopted during the period ended March 31, 2022. Future Adoption of New Accounting Pronouncements In August 2018, the FASB issued new guidance on long-duration contracts (ASU 2018-12, Financial Services-Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts). This new guidance is effective for fiscal years beginning after January 1, 2023. The amendments to Topic 944 will result in significant changes to the measurement, presentation and disclosure requirements for long-duration insurance contracts. A summary of the most significant changes is provided below: (1) Guaranteed benefits associated with variable annuity and certain fixed annuity contracts will be classified and presented separately on the consolidated balance sheets as market risk benefits (“MRB”). MRBs will be measured at fair value through net income and reported separately on the consolidated statements of operations, except for instrument-specific credit risk changes, which will be recognized in other comprehensive income (loss) (“OCI”). (2) Cash flow assumptions used to measure the liability for future policy benefits on traditional long-duration contracts (including term and non-participating whole life insurance and immediate annuities) will be updated on an annual basis using a retrospective method. The resulting remeasurement gain or loss will be reported separately on the consolidated statements of operations along with the remeasurement gain or loss on universal life-type contract liabilities. (3) The discount rate assumption used to measure the liability for traditional long-duration contracts will be based on an upper-medium grade fixed income yield, updated quarterly, with changes recognized in OCI. (4) Deferred policy acquisition costs (“DAC”) for all insurance products are required to be amortized on a constant-level basis over the expected term of the contracts, using amortization methods that are not a function of revenue or profit emergence. Changes in assumptions used to amortize DAC will be recognized as a revision to future amortization amounts. (5) There will be a significant increase in required disclosures, including disaggregated rollforwards of insurance contract assets and liabilities supplemented by qualitative and quantitative information regarding the cash flows, assumptions, methods and judgements used to measure those balances. The amendments to Topic 944 will be applied to the earliest period presented in the financial statements, making the transition date January 1, 2021. The MRB guidance is required to be applied on a retrospective basis, while the guidance for insurance liability assumption updates and DAC amortization will be applied to existing carrying amounts on the transition date. The new guidance will have a significant impact on the Company’s financial statements upon adoption, and will change the pattern and market sensitivity of the Company’s earnings after the transition date. The most significant impact will be the requirement that all variable annuity guarantees be considered MRBs and measured at fair value, because a significant amount of variable annuity guarantees are classified as insurance liabilities under current guidance. The impacts to the financial statements at adoption are highly dependent on market conditions, especially interest rates. The Company is, therefore, unable to currently estimate the ultimate impact of the new guidance on the financial statements; however, at prevailing interest rate levels at the end of 2021, the Company expects the new guidance, upon adoption, would likely result in a material decrease in stockholder’s equity. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment Information | 2. Segment Information The Company is organized into three segments: Annuities; Life; and Run-off. In addition, the Company reports certain of its results of operations in Corporate & Other. Annuities The Annuities segment consists of a variety of variable, fixed, index-linked and income annuities designed to address contract holders’ needs for protected wealth accumulation on a tax-deferred basis, wealth transfer and income security. Life The Life segment consists of insurance products and services, including term, universal, whole and variable life products designed to address policyholders’ needs for financial security and protected wealth transfer, which may be on a tax-advantaged basis. Run-off The Run-off segment consists of products that are no longer actively sold and are separately managed, including universal life with secondary guarantees, structured settlements, pension risk transfer contracts, certain company-owned life insurance policies and certain funding agreements. Corporate & Other Corporate & Other contains the excess capital not allocated to the segments and interest expense related to the Company’s outstanding debt, as well as expenses associated with certain legal proceedings and income tax audit issues. Corporate & Other also includes long-term care and workers’ compensation business reinsured through 100% quota share reinsurance agreements, activities related to funding agreements associated with the Company’s institutional spread margin business, as well as direct-to-consumer life insurance that is no longer actively sold. Financial Measures and Segment Accounting Policies Adjusted earnings is a financial measure used by management to evaluate performance and facilitate comparisons to industry results. Consistent with GAAP guidance for segment reporting, adjusted earnings is also used to measure segment performance. The Company believes the presentation of adjusted earnings, as the Company measures it for management purposes, enhances the understanding of its performance by the investor community and contract holders by highlighting the results of operations and the underlying profitability drivers of the business. Adjusted earnings, which may be positive or negative, focuses on the Company’s primary businesses by excluding the impact of market volatility, which could distort trends. The following are significant items excluded from total revenues in calculating adjusted earnings: • Net investment gains (losses); • Net derivative gains (losses) except earned income and amortization of premium on derivatives that are hedges of investments or that are used to replicate certain investments, but do not qualify for hedge accounting treatment; and • Certain variable annuity guaranteed minimum income benefits (“GMIB”) fees (“GMIB Fees”). The following are significant items excluded from total expenses in calculating adjusted earnings: • Amounts associated with benefits related to GMIBs (“GMIB Costs”); • Amounts associated with periodic crediting rate adjustments based on the total return of a contractually referenced pool of assets; and • Amortization of DAC and value of business acquired (“VOBA”) related to (i) net investment gains (losses), (ii) net derivative gains (losses) and (iii) GMIB Fees and GMIB Costs. The tax impact of the adjustments discussed above is calculated net of the statutory tax rate, which could differ from the Company’s effective tax rate. The segment accounting policies are the same as those used to prepare the Company’s interim condensed consolidated financial statements, except for the adjustments to calculate adjusted earnings described above. In addition, segment accounting policies include the methods of capital allocation described below. Segment investment and capitalization targets are based on statutory oriented risk principles and metrics. Segment invested assets backing liabilities are based on net statutory liabilities plus excess capital. For the variable annuity business, the excess capital held is based on the target statutory total asset requirement consistent with the Company’s variable annuity risk management strategy. For insurance businesses other than variable annuities, excess capital held is based on a percentage of required statutory risk-based capital. Assets in excess of those allocated to the segments, if any, are held in Corporate & Other. Segment net investment income reflects the performance of each segment’s respective invested assets. Operating results by segment, as well as Corporate & Other, were as follows: Three Months Ended March 31, 2022 Annuities Life Run-off Corporate Total (In millions) Pre-tax adjusted earnings $ 374 $ 39 $ 19 $ (39) $ 393 Provision for income tax expense (benefit) 71 8 4 (5) 78 Post-tax adjusted earnings 303 31 15 (34) 315 Less: Net income (loss) attributable to noncontrolling interests — — — — — Adjusted earnings $ 303 $ 31 $ 15 $ (34) 315 Adjustments for: Net investment gains (losses) (67) Net derivative gains (losses) 555 Other adjustments to net income (loss) (38) Provision for income tax (expense) benefit (94) Net income (loss) attributable to Brighthouse Life Insurance Company $ 671 Interest revenue $ 553 $ 140 $ 401 $ 47 Interest expense $ — $ — $ — $ 17 Three Months Ended March 31, 2021 Annuities Life Run-off Corporate Total (In millions) Pre-tax adjusted earnings $ 396 $ 141 $ 85 $ (66) $ 556 Provision for income tax expense (benefit) 75 29 9 (12) 101 Post-tax adjusted earnings 321 112 76 (54) 455 Less: Net income (loss) attributable to noncontrolling interests — — — — — Adjusted earnings $ 321 $ 112 $ 76 $ (54) 455 Adjustments for: Net investment gains (losses) 12 Net derivative gains (losses) (1,387) Other adjustments to net income (loss) 225 Provision for income tax (expense) benefit 242 Net income (loss) attributable to Brighthouse Life Insurance Company $ (453) Interest revenue $ 547 $ 150 $ 463 $ 14 Interest expense $ — $ — $ — $ 17 Total revenues by segment, as well as Corporate & Other, were as follows: Three Months Ended 2022 2021 (In millions) Annuities $ 1,135 $ 1,147 Life 276 324 Run-off 562 628 Corporate & Other 66 35 Adjustments 540 (1,320) Total $ 2,579 $ 814 Total assets by segment, as well as Corporate & Other, were as follows at: March 31, 2022 December 31, 2021 (In millions) Annuities $ 163,983 $ 174,489 Life 17,600 18,190 Run-off 34,059 37,069 Corporate & Other 17,864 17,507 Total $ 233,506 $ 247,255 |
Insurance
Insurance | 3 Months Ended |
Mar. 31, 2022 | |
Insurance [Abstract] | |
Insurance | 3. Insurance Guarantees As discussed in Notes 1 and 3 of the Notes to the Consolidated Financial Statements included in the 2021 Annual Report, the Company issues variable annuity contracts with guaranteed minimum benefits. Guaranteed minimum death benefits, the life contingent portion of guaranteed minimum withdrawal benefits (“GMWB”) and certain portions of GMIBs are accounted for as insurance liabilities in future policyholder benefits, while other guarantees are accounted for in whole or in part as embedded derivatives in policyholder account balances and are further discussed in Note 5. The Company also has secondary guarantees on universal and variable life insurance contracts accounted for as insurance liabilities. Information regarding the Company’s guarantee exposure was as follows at: March 31, 2022 December 31, 2021 In the At In the At (Dollars in millions) Annuity Contracts (1), (2) Variable Annuity Guarantees Total account value (3) $ 96,960 $ 51,769 $ 105,784 $ 56,966 Separate account value $ 92,277 $ 50,709 $ 101,108 $ 55,910 Net amount at risk $ 9,189 (4) $ 5,468 (5) $ 6,315 (4) $ 4,992 (5) Average attained age of contract holders 72 years 71 years 71 years 71 years March 31, 2022 December 31, 2021 Secondary Guarantees (Dollars in millions) Universal Life Contracts Total account value (3) $ 5,447 $ 5,518 Net amount at risk (6) $ 66,682 $ 67,248 Average attained age of policyholders 68 years 68 years Variable Life Contracts Total account value (3) $ 1,348 $ 1,448 Net amount at risk (6) $ 10,496 $ 10,508 Average attained age of policyholders 47 years 47 years _______________ (1) The Company’s annuity contracts with guarantees may offer more than one type of guarantee in each contract. Therefore, the amounts listed above may not be mutually exclusive. (2) Includes direct business, but excludes offsets from hedging or reinsurance, if any. Therefore, the net amount at risk presented reflects the economic exposures of living and death benefit guarantees associated with variable annuities, but not necessarily their impact on the Company. See Note 5 of the Notes to the Consolidated Financial Statements included in the 2021 Annual Report for a discussion of guaranteed minimum benefits which have been reinsured. (3) Includes the contract holder’s investments in the general account and separate account, if applicable. (4) Defined as the death benefit less the total account value, as of the balance sheet date. It represents the amount of the claim that the Company would incur if death claims were filed on all contracts on the balance sheet date and includes any additional contractual claims associated with riders purchased to assist with covering income taxes payable upon death. (5) Defined as the amount (if any) that would be required to be added to the total account value to purchase a lifetime income stream, based on current annuity rates, equal to the minimum amount provided under the guaranteed benefit. This amount represents the Company’s potential economic exposure to such guarantees in the event all contract holders were to annuitize on the balance sheet date, even though the contracts contain terms that allow annuitization of the guaranteed amount only after the 10th anniversary of the contract, which not all contract holders have achieved. (6) Defined as the guarantee amount less the account value, as of the balance sheet date. It represents the amount of the claim that the Company would incur if death claims were filed on all contracts on the balance sheet date. |
Investments
Investments | 3 Months Ended |
Mar. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | 4. InvestmentsSee Notes 1 and 8 of the Notes to the Consolidated Financial Statements included in the 2021 Annual Report for a description of the Company’s accounting policies for investments and the fair value hierarchy for investments and the related valuation methodologies. Fixed Maturity Securities Available-for-sale Fixed Maturity Securities by Sector Fixed maturity securities by sector were as follows at: March 31, 2022 December 31, 2021 Amortized Allowance Gross Unrealized Estimated Amortized Allowance Gross Unrealized Estimated Gains Losses Gains Losses (In millions) U.S. corporate $ 35,220 $ 2 $ 1,434 $ 1,201 $ 35,451 $ 34,773 $ 2 $ 3,890 $ 187 $ 38,474 Foreign corporate 11,172 7 276 494 10,947 10,813 7 902 103 11,605 RMBS 8,782 — 185 275 8,692 8,838 — 433 51 9,220 U.S. government and agency 8,344 — 1,342 223 9,463 7,188 — 2,040 60 9,168 CMBS 7,023 2 46 173 6,894 6,890 2 329 24 7,193 State and political subdivision 3,885 — 456 101 4,240 3,937 — 829 6 4,760 ABS 4,594 — 8 98 4,504 4,255 — 34 14 4,275 Foreign government 1,227 — 116 32 1,311 1,593 — 244 5 1,832 Total fixed maturity securities $ 80,247 $ 11 $ 3,863 $ 2,597 $ 81,502 $ 78,287 $ 11 $ 8,701 $ 450 $ 86,527 The Company held non-income producing fixed maturity securities with an estimated fair value of $44 million and $3 million at March 31, 2022 and December 31, 2021, respectively. Maturities of Fixed Maturity Securities The amortized cost and estimated fair value of fixed maturity securities, by contractual maturity date, were as follows at March 31, 2022: Due in One Due After One Due After Due After Ten Structured Total Fixed (In millions) Amortized cost $ 916 $ 11,564 $ 16,844 $ 30,524 $ 20,399 $ 80,247 Estimated fair value $ 921 $ 11,478 $ 16,493 $ 32,520 $ 20,090 $ 81,502 _______________ (1) Structured securities include residential mortgage-backed securities (“RMBS”), commercial mortgage-backed securities (“CMBS”) and asset-backed securities (“ABS”) (collectively, “Structured Securities”). Actual maturities may differ from contractual maturities due to the exercise of call or prepayment options. Fixed maturity securities not due at a single maturity date have been presented in the year of final contractual maturity. Structured Securities are shown separately, as they are not due at a single maturity. Continuous Gross Unrealized Losses for Fixed Maturity Securities by Sector The estimated fair value and gross unrealized losses of fixed maturity securities in an unrealized loss position, by sector and by length of time that the securities have been in a continuous unrealized loss position, were as follows at: March 31, 2022 December 31, 2021 Less than 12 Months 12 Months or Greater Less than 12 Months 12 Months or Greater Estimated Gross Estimated Gross Estimated Gross Estimated Gross (Dollars in millions) U.S. corporate $ 14,235 $ 884 $ 1,971 $ 317 $ 5,051 $ 111 $ 887 $ 76 Foreign corporate 5,532 387 555 107 2,016 60 305 43 RMBS 4,934 236 410 39 3,481 50 32 1 U.S. government and agency 2,845 98 574 125 1,712 40 222 20 CMBS 4,077 129 391 44 1,390 21 95 3 State and political subdivision 997 97 24 4 347 6 6 — ABS 3,732 94 148 4 2,454 13 93 1 Foreign government 452 32 — — 278 4 18 1 Total fixed maturity securities $ 36,804 $ 1,957 $ 4,073 $ 640 $ 16,729 $ 305 $ 1,658 $ 145 Total number of securities in an unrealized loss position 5,202 710 2,423 368 Allowance for Credit Losses for Fixed Maturity Securities Evaluation and Measurement Methodologies For fixed maturity securities in an unrealized loss position, management first assesses whether the Company intends to sell, or whether it is more likely than not it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to estimated fair value through net investment gains (losses). For fixed maturity securities that do not meet the aforementioned criteria, management evaluates whether the decline in estimated fair value has resulted from credit losses or other factors. Inherent in management’s evaluation of the security are assumptions and estimates about the operations of the issuer and its future earnings potential. Considerations used in the allowance for credit loss evaluation process include, but are not limited to: (i) the extent to which estimated fair value is less than amortized cost; (ii) any changes to the rating of the security by a rating agency; (iii) adverse conditions specifically related to the security, industry or geographic area; and (iv) payment structure of the fixed maturity security and the likelihood of the issuer being able to make payments in the future or the issuer’s failure to make scheduled interest and principal payments. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss is deemed to exist and an allowance for credit losses is recorded, limited by the amount that the estimated fair value is less than the amortized cost basis, with a corresponding charge to net investment gains (losses). Any unrealized losses that have not been recorded through an allowance for credit losses are recognized in OCI. Once a security specific allowance for credit losses is established, the present value of cash flows expected to be collected from the security continues to be reassessed. Any changes in the security specific allowance for credit losses are recorded as a provision for (or reversal of) credit loss expense in net investment gains (losses). Fixed maturity securities are also evaluated to determine whether any amounts have become uncollectible. When all, or a portion, of a security is deemed uncollectible, the uncollectible portion is written-off with an adjustment to amortized cost and a corresponding reduction to the allowance for credit losses. Accrued interest receivables are presented separate from the amortized cost basis of fixed maturity securities. An allowance for credit losses is not estimated on an accrued interest receivable, rather receivable balances 90-days past due are deemed uncollectible and are written off with a corresponding reduction to net investment income. The accrued interest receivable on fixed maturity securities totaled $572 million and $527 million at March 31, 2022 and December 31, 2021, respectively, and is included in accrued investment income. Fixed maturity securities are also evaluated to determine if they qualify as purchased financial assets with credit deterioration (“PCD”). To determine if the credit deterioration experienced since origination is more than insignificant, both (i) the extent of the credit deterioration and (ii) any rating agency downgrades are evaluated. For securities categorized as PCD assets, the present value of cash flows expected to be collected from the security are compared to the par value of the security. If the present value of cash flows expected to be collected is less than the par value, credit losses are embedded in the purchase price of the PCD asset. In this situation, both an allowance for credit losses and amortized cost gross-up is recorded, limited by the amount that the estimated fair value is less than the grossed-up amortized cost basis. Any difference between the purchase price and the present value of cash flows is amortized or accreted into net investment income over the life of the PCD asset. Any subsequent PCD asset allowance for credit losses is evaluated in a manner similar to the process described above for fixed maturity securities. Current Period Evaluation Allowance for Credit Losses for Fixed Maturity Securities The allowance for credit losses for fixed maturity securities was $11 million at both March 31, 2022 and December 31, 2021. For both the three months ended March 31, 2022 and 2021, the change in the allowance for fixed maturity securities by sector was immaterial. The Company recorded total write-offs of $2 million for the three months ended March 31, 2022. The Company did not record any write-offs for the three months ended March 31, 2021. Mortgage Loans Mortgage Loans by Portfolio Segment Mortgage loans are summarized as follows at: March 31, 2022 December 31, 2021 Carrying % of Carrying % of (Dollars in millions) Commercial $ 13,092 61.5 % $ 12,159 61.4 % Agricultural 4,104 19.3 4,128 20.9 Residential 4,226 19.8 3,623 18.3 Total mortgage loans (1) 21,422 100.6 19,910 100.6 Allowance for credit losses (127) (0.6) (123) (0.6) Total mortgage loans, net $ 21,295 100.0 % $ 19,787 100.0 % _______________ (1) Purchases of mortgage loans from third parties were $840 million and $178 million for the three months ended March 31, 2022 and 2021, respectively, and were primarily comprised of residential mortgage loans. Allowance for Credit Losses for Mortgage Loans Evaluation and Measurement Methodologies The allowance for credit losses is a valuation account that is deducted from the mortgage loan’s amortized cost basis to present the net amount expected to be collected on the mortgage loan. The loan balance, or a portion of the loan balance, is written-off against the allowance when management believes this amount is uncollectible. Accrued interest receivables are presented separate from the amortized cost basis of mortgage loans. An allowance for credit losses is generally not estimated on an accrued interest receivable, rather when a loan is placed in nonaccrual status the associated accrued interest receivable balance is written off with a corresponding reduction to net investment income. For mortgage loans that are granted payment deferrals due to the COVID-19 pandemic, interest continues to be accrued during the deferral period if the loan was less than 30 days past due at December 31, 2019 and performing at the onset of the pandemic. Accrued interest on COVID-19 pandemic impacted loans was not significant at both March 31, 2022 and December 31, 2021. The accrued interest receivable on mortgage loans is included in accrued investment income and totaled $93 million and $95 million at March 31, 2022 and December 31, 2021, respectively. The allowance for credit losses is estimated using relevant available information, from internal and external sources, relating to past events, current conditions, and a reasonable and supportable forecast. Historical credit loss experience provides the basis for estimating expected credit losses. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics and environmental conditions. A reasonable and supportable forecast period of two-years is used with an input reversion period of one-year. Mortgage loans are evaluated in each of the three portfolio segments to determine the allowance for credit losses. The loan-level loss rates are determined using individual loan terms and characteristics, risk pools/internal ratings, national economic forecasts, prepayment speeds, and estimated default and loss severity. The resulting loss rates are applied to the mortgage loan’s amortized cost to generate an allowance for credit losses. In certain situations, the allowance for credit losses is measured as the difference between the loan’s amortized cost and liquidation value of the collateral. These situations include collateral dependent loans, expected troubled debt restructurings (“TDR”), foreclosure probable loans, and loans with dissimilar risk characteristics. Mortgage loans are also evaluated to determine if they qualify as PCD assets. To determine if the credit deterioration experienced since origination is more than insignificant, the extent of credit deterioration is evaluated. All re-performing/modified loan (“RPL”) pools purchased after December 31, 2019 are determined to have been acquired with evidence of more than insignificant credit deterioration since origination and are classified as PCD assets. RPLs are pools of residential mortgage loans acquired at a discount or premium which have both credit and non-credit components. For PCD mortgage loans, the allowance for credit losses is determined using a similar methodology described above, except the loss-rate is determined at the pool level instead of the individual loan level. The initial allowance for credit losses, determined on a collective basis, is then allocated to the individual loans. The initial amortized cost of the loan is grossed-up to reflect the sum of the loan’s purchase price and allowance for credit losses. The difference between the grossed-up amortized cost basis and the par value of the loan is a noncredit discount or premium, which is accreted or amortized into net investment income over the remaining life of the loan. Any subsequent PCD mortgage loan allowance for credit losses is evaluated in a manner similar to the process described above for each of the three portfolio segments. Rollforward of the Allowance for Credit Losses for Mortgage Loans by Portfolio Segment The changes in the allowance for credit losses by portfolio segment were as follows: Commercial Agricultural Residential Total (In millions) Three Months Ended March 31, 2022 Balance, beginning of period $ 67 $ 12 $ 44 $ 123 Current period provision 2 3 (1) 4 Balance, end of period $ 69 $ 15 $ 43 $ 127 Three Months Ended March 31, 2021 Balance, beginning of period $ 44 $ 15 $ 35 $ 94 Current period provision 1 (2) (3) (4) Balance, end of period $ 45 $ 13 $ 32 $ 90 Credit Quality of Mortgage Loans by Portfolio Segment The amortized cost of mortgage loans by year of origination and credit quality indicator was as follows at: 2022 2021 2020 2019 2018 Prior Total (In millions) March 31, 2022 Commercial mortgage loans Loan-to-value ratios: Less than 65% $ 637 $ 2,772 $ 436 $ 1,538 $ 986 $ 3,835 $ 10,204 65% to 75% 346 631 92 383 406 579 2,437 76% to 80% — — — 55 29 68 152 Greater than 80% — — — — 29 270 299 Total commercial mortgage loans 983 3,403 528 1,976 1,450 4,752 13,092 Agricultural mortgage loans Loan-to-value ratios: Less than 65% 90 1,149 426 503 669 904 3,741 65% to 75% 49 114 77 61 20 42 363 Total agricultural mortgage loans 139 1,263 503 564 689 946 4,104 Residential mortgage loans Performing 132 1,773 187 243 202 1,626 4,163 Nonperforming — 3 — 2 2 56 63 Total residential mortgage loans 132 1,776 187 245 204 1,682 4,226 Total $ 1,254 $ 6,442 $ 1,218 $ 2,785 $ 2,343 $ 7,380 $ 21,422 2021 2020 2019 2018 2017 Prior Total (In millions) December 31, 2021 Commercial mortgage loans Loan-to-value ratios: Less than 65% $ 2,771 $ 437 $ 1,539 $ 986 $ 553 $ 3,300 $ 9,586 65% to 75% 633 92 383 406 127 458 2,099 76% to 80% — — 55 29 59 31 174 Greater than 80% — — — 30 — 270 300 Total commercial mortgage loans 3,404 529 1,977 1,451 739 4,059 12,159 Agricultural mortgage loans Loan-to-value ratios: Less than 65% 1,150 539 510 674 284 608 3,765 65% to 75% 114 77 61 26 33 52 363 Total agricultural mortgage loans 1,264 616 571 700 317 660 4,128 Residential mortgage loans Performing 1,124 202 270 230 132 1,606 3,564 Nonperforming 1 — 3 3 1 51 59 Total residential mortgage loans 1,125 202 273 233 133 1,657 3,623 Total $ 5,793 $ 1,347 $ 2,821 $ 2,384 $ 1,189 $ 6,376 $ 19,910 The loan-to-value ratio is a measure commonly used to assess the quality of commercial and agricultural mortgage loans. The loan-to-value ratio compares the amount of the loan to the estimated fair value of the underlying property collateralizing the loan and is commonly expressed as a percentage. A loan-to-value ratio less than 100% indicates an excess of collateral value over the loan amount. Loan-to-value ratios greater than 100% indicate that the loan amount exceeds the collateral value. Performing status is a measure commonly used to assess the quality of residential mortgage loans. A loan is considered performing when the borrower makes consistent and timely payments. The amortized cost of commercial mortgage loans by debt-service coverage ratio was as follows at: March 31, 2022 December 31, 2021 Amortized Cost % of Amortized Cost % of (Dollars in millions) Debt-service coverage ratios: Greater than 1.20x $ 10,986 83.9 % $ 10,263 84.4 % 1.00x - 1.20x 569 4.4 595 4.9 Less than 1.00x 1,537 11.7 1,301 10.7 Total $ 13,092 100.0 % $ 12,159 100.0 % The debt-service coverage ratio compares a property’s net operating income to its debt-service payments. Debt-service coverage ratios less than 1.00 times indicate that property operations do not generate enough income to cover the loan’s current debt payments. A debt-service coverage ratio greater than 1.00 times indicates an excess of net operating income over the debt-service payments. Past Due Mortgage Loans by Portfolio Segment The Company has a high-quality, well-performing mortgage loan portfolio, with over 99% of all mortgage loans classified as performing at both March 31, 2022 and December 31, 2021. Delinquency is defined consistent with industry practice, when mortgage loans are past due as follows: commercial and residential mortgage loans — 60 days; and agricultural mortgage loans — 90 days. To the extent a payment deferral is agreed to with a borrower, in response to the COVID-19 pandemic, the past due status of the impacted loans during the forbearance period is locked-in as of March 1, 2020, which reflects the date on which the COVID-19 pandemic began to affect the borrower’s ability to make payments. At March 31, 2022 and December 31, 2021, $31 million and $30 million, respectively, of the COVID-19 pandemic modified loans were classified as delinquent. The aging of the amortized cost of past due mortgage loans by portfolio segment was as follows at: March 31, 2022 December 31, 2021 Commercial Agricultural Residential Total Commercial Agricultural Residential Total (In millions) Current $ 13,092 $ 4,035 $ 4,147 $ 21,274 $ 12,159 $ 4,128 $ 3,550 $ 19,837 30-59 days past due — 51 16 67 — — 14 14 60-89 days past due — 16 17 33 — — 14 14 90-179 days past due — 2 31 33 — — 29 29 180+ days past due — — 15 15 — — 16 16 Total $ 13,092 $ 4,104 $ 4,226 $ 21,422 $ 12,159 $ 4,128 $ 3,623 $ 19,910 Mortgage Loans in Nonaccrual Status by Portfolio Segment Mortgage loans are placed in a nonaccrual status if there are concerns regarding collectability of future payments or the loan is past due, unless the past due loan is well collateralized. To the extent a payment deferral is agreed to with a borrower, in response to the COVID-19 pandemic, the impacted loans generally will not be reported as in a nonaccrual status during the period of deferral. A COVID-19 pandemic modified loan is only reported as a nonaccrual asset in the event a borrower declares bankruptcy, the borrower experiences significant credit deterioration such that the Company does not expect to collect all principal and interest due, or the loan was 90 days past due at the onset of the pandemic. At March 31, 2022 and December 31, 2021, $31 million and $30 million, respectively, of the COVID-19 pandemic modified loans were in nonaccrual status. The amortized cost of mortgage loans in a nonaccrual status by portfolio segment were as follows at: Commercial Agricultural Residential (1) Total (In millions) March 31, 2022 $ — $ — $ 63 $ 63 December 31, 2021 $ — $ — $ 59 $ 59 _______________ (1) All residential mortgage loans in nonaccrual status had an allowance for credit losses at both March 31, 2022 and December 31, 2021. Current period investment income on mortgage loans in nonaccrual status was less than $1 million for both the three months ended March 31, 2022 and 2021. Modified Mortgage Loans by Portfolio Segment Under certain circumstances, modifications are granted to nonperforming mortgage loans. Each modification is evaluated to determine if a TDR has occurred. A modification is a TDR when the borrower is in financial difficulty and the creditor makes concessions. Generally, the types of concessions may include reducing the amount of debt owed, reducing the contractual interest rate, extending the maturity date at an interest rate lower than current market interest rates and/or reducing accrued interest. The Company did not have a significant amount of mortgage loans modified in a TDR during both the three months ended March 31, 2022 and 2021. Short-term modifications made on a good faith basis to borrowers who were not more than 30 days past due at December 31, 2019 and in response to the COVID-19 pandemic are not considered TDRs. Other Invested Assets Over 90% of other invested assets is comprised of freestanding derivatives with positive estimated fair values. See Note 5 for information about freestanding derivatives with positive estimated fair values. Other invested assets also includes Federal Home Loan Bank (“FHLB”) stock, tax credit and renewable energy partnerships and leveraged leases. Net Unrealized Investment Gains (Losses) Unrealized investment gains (losses) on fixed maturity securities and the effect on DAC, VOBA, deferred sales inducements (“DSI”) and future policy benefits, that would result from the realization of the unrealized gains (losses), are included in net unrealized investment gains (losses) in accumulated other comprehensive income (loss) (“AOCI”). The components of net unrealized investment gains (losses), included in AOCI, were as follows at: March 31, 2022 December 31, 2021 (In millions) Fixed maturity securities $ 1,266 $ 8,251 Derivatives 338 320 Other (10) (27) Subtotal 1,594 8,544 Amounts allocated from: Future policy benefits (1,102) (3,210) DAC, VOBA and DSI (81) (387) Subtotal (1,183) (3,597) Deferred income tax benefit (expense) (86) (1,039) Net unrealized investment gains (losses) $ 325 $ 3,908 The changes in net unrealized investment gains (losses) were as follows: Three Months Ended March 31, 2022 (In millions) Balance at December 31, 2021 $ 3,908 Unrealized investment gains (losses) during the period (6,950) Unrealized investment gains (losses) relating to: Future policy benefits 2,108 DAC, VOBA and DSI 306 Deferred income tax benefit (expense) 953 Balance at March 31, 2022 $ 325 Change in net unrealized investment gains (losses) $ (3,583) Concentrations of Credit Risk There were no investments in any counterparty that were greater than 10% of the Company’s equity, other than the U.S. government and its agencies, at both March 31, 2022 and December 31, 2021. Securities Lending Elements of the securities lending program are presented below at: March 31, 2022 December 31, 2021 (In millions) Securities on loan: (1) Amortized cost $ 4,491 $ 3,573 Estimated fair value $ 5,073 $ 4,539 Cash collateral received from counterparties (2) $ 5,168 $ 4,611 Securities collateral received from counterparties (3) $ — $ 2 Reinvestment portfolio — estimated fair value $ 5,202 $ 4,730 _______________ (1) Included within fixed maturity securities. (2) Included within payables for collateral under securities loaned and other transactions. (3) Securities collateral received from counterparties may not be sold or re-pledged, unless the counterparty is in default, and is not reported on the interim condensed consolidated financial statements. The cash collateral liability by loaned security type and remaining tenor of the agreements were as follows at: March 31, 2022 December 31, 2021 Open (1) 1 Month or Less 1 to 6 Months Total Open (1) 1 Month or Less 1 to 6 Months Total (In millions) U.S. government and agency $ 1,159 $ 1,635 $ 1,751 $ 4,545 $ 1,094 $ 2,125 $ 1,391 $ 4,610 U.S. corporate 1 479 — 480 1 — — 1 Foreign corporate — 143 — 143 — — — — Total $ 1,160 $ 2,257 $ 1,751 $ 5,168 $ 1,095 $ 2,125 $ 1,391 $ 4,611 _______________ (1) The related loaned security could be returned to the Company on the next business day which would require the Company to immediately return the cash collateral. If the Company is required to return significant amounts of cash collateral on short notice and is forced to sell securities to meet the return obligation, it may have difficulty selling such collateral that is invested in securities in a timely manner, be forced to sell securities in a volatile or illiquid market for less than what otherwise would have been realized in normal market conditions, or both. The estimated fair value of the securities on loan related to the cash collateral on open at March 31, 2022 was $1.1 billion, primarily comprised of U.S. government and agency securities which, if put back to the Company, could be immediately sold to satisfy the cash requirement. Invested Assets on Deposit, Held in Trust and Pledged as Collateral Invested assets on deposit, held in trust and pledged as collateral at estimated fair value were as follows at: March 31, 2022 December 31, 2021 (In millions) Invested assets on deposit (regulatory deposits) (1) $ 9,113 $ 9,996 Invested assets held in trust (reinsurance agreements) (2) 5,693 6,023 Invested assets pledged as collateral (3) 6,030 5,116 Total invested assets on deposit, held in trust and pledged as collateral $ 20,836 $ 21,135 _______________ (1) The Company has assets, primarily fixed maturity securities, on deposit with governmental authorities relating to certain policyholder liabilities, of which $41 million and $25 million of the assets on deposit represents restricted cash and cash equivalents at March 31, 2022 and December 31, 2021, respectively. (2) The Company has assets, primarily fixed maturity securities, held in trust relating to certain reinsurance transactions, of which $101 million and $118 million of the assets held in trust balance represents restricted cash and cash equivalents at March 31, 2022 and December 31, 2021, respectively. (3) The Company has pledged invested assets in connection with various agreements and transactions, including funding agreements (see Note 3 of the Notes to the Consolidated Financial Statements included in the 2021 Annual Report) and derivative transactions (see Note 5). See “— Securities Lending” for information regarding securities on loan. In addition, the Company’s investment in FHLB common stock, which is considered restricted until redeemed by the issuer, was $89 million and $70 million at redemption value at March 31, 2022 and December 31, 2021, respectively. Variable Interest Entities A variable interest entity (“VIE”) is a legal entity that does not have sufficient equity at risk to finance its activities or is structured such that equity investors lack the ability to make significant decisions relating to the entity’s operations through voting rights or do not substantively participate in the gains and losses of the entity. The Company enters into various arrangements with VIEs in the normal course of business and has invested in legal entities that are VIEs. VIEs are consolidated when it is determined that the Company is the primary beneficiary. A primary beneficiary is the variable interest holder in a VIE with both (i) the power to direct the activities of the VIE that most significantly impact the economic performance of the VIE and (ii) the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. In addition, the evaluation of whether a legal entity is a VIE and if the Company is a primary beneficiary includes a review of the capital structure of the VIE, the related contractual relationships and terms, the nature of the operations and purpose of the VIE, the nature of the VIE interests issued and the Company’s involvement with the entity. There were no material VIEs for which the Company has concluded that it is the primary beneficiary at either March 31, 2022 or December 31, 2021. The carrying amount and maximum exposure to loss related to the VIEs for which the Company has concluded that it holds a variable interest, but is not the primary beneficiary, were as follows at: March 31, 2022 December 31, 2021 Carrying Maximum Carrying Maximum (In millions) Fixed maturity securities $ 15,748 $ 15,912 $ 16,326 $ 15,659 Limited partnerships and LLCs 3,875 5,241 3,666 5,101 Total $ 19,623 $ 21,153 $ 19,992 $ 20,760 The Company’s investments in unconsolidated VIEs are described below. Fixed Maturity Securities Limited Partnerships and LLCs The Company holds investments in certain limited partnerships and LLCs which are VIEs. These ventures include limited partnerships, LLCs, private equity funds, and, to a lesser extent, tax credit and renewable energy partnerships. The Company is not considered the primary beneficiary, or consolidator, when its involvement takes the form of a limited partner interest and is restricted to a role of a passive investor, as a limited partner’s interest does not provide the Company with any substantive kick-out or participating rights, nor does it provide the Company with the power to direct the activities of the fund. The Company’s maximum exposure to loss on these investments is limited to: (i) the amount invested in debt or equity of the VIE and (ii) commitments to the VIE, as described in Note 9. Net Investment Income The components of net investment income were as follows: Three Months Ended 2022 2021 (In millions) Investment income: Fixed maturity securities $ 709 $ 680 Equity securities — 1 Mortgage loans 202 163 Policy loans 9 10 Limited partnerships and LLCs (1) 241 338 Cash, cash equivalents and short-term investments 1 1 Other 14 10 Total investment income 1,176 1,203 Less: Investment expenses 41 34 Net investment income $ 1,135 $ 1,169 _______________ (1) Includes net investment income pertaining to other limited partnership interests of $212 million and $331 million for the three months ended March 31, 2022 and 2021, respectively. Net Investment Gains (Losses) Components of Net Investment Gains (Losses) The components of net investment gains (losses) were as follows: Three Months Ended 2022 2021 (In millions) Fixed maturity securities $ (41) $ 8 Equity securities (6) — Mortgage loans (4) 4 Limited partnerships and LLCs (16) — Total net investment gains (losses) $ (67) $ 12 Gains (losses) from foreign currency transactions included within net investment gains (losses) were ($15) million and $0 for the three months ended March 31, 2022 and 2021, respectively. Sales or Disposals of Fixed Maturity Securities Investment gains and losses on sales of securities are determined on a specific identification basis. Proceeds from sales or disposals of fixed maturity securities and the components of fixed maturity securities net investment gains (losses) were as follows: Three Months Ended 2022 2021 (In millions) Proceeds $ 2,540 $ 1,218 Gross investment gains $ 47 $ 31 Gross investment losses (86) (17) Net investment gains (losses) $ (39) $ 14 |
Derivatives
Derivatives | 3 Months Ended |
Mar. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | 5. Derivatives Accounting for Derivatives See Notes 1 and 8 of the Notes to the Consolidated Financial Statements included in the 2021 Annual Report for a description of the Company’s accounting policies for derivatives and the fair value hierarchy for derivatives. Types of Derivative Instruments and Derivative Strategies The Company maintains an overall risk management strategy that incorporates the use of derivative instruments to minimize its exposure to various market risks. Commonly used derivative instruments include, but are not necessarily limited to: • Interest rate derivatives: swaps, caps, swaptions and forwards; • Foreign currency exchange rate derivatives: forwards and swaps; • Equity market derivatives: options, total return swaps and variance swaps; and • Credit derivatives: single and index reference credit default swaps and swaptions. For detailed information on these contracts and the related strategies, see Note 7 of the Notes to the Consolidated Financial Statements included in the 2021 Annual Report. Primary Risks Managed by Derivatives The primary underlying risk exposure, gross notional amount and estimated fair value of derivatives held were as follows at: March 31, 2022 December 31, 2021 Primary Underlying Risk Exposure Gross Estimated Fair Value Gross Estimated Fair Value Assets Liabilities Assets Liabilities (In millions) Derivatives Designated as Hedging Instruments: Cash flow hedges: Interest rate forwards Interest rate $ 150 $ 6 $ — $ 180 $ 30 $ — Foreign currency swaps Foreign currency exchange rate 3,584 256 20 3,237 220 22 Total qualifying hedges 3,734 262 20 3,417 250 22 Derivatives Not Designated or Not Qualifying as Hedging Instruments: Interest rate swaps Interest rate 2,770 222 11 2,595 325 17 Interest rate caps Interest rate 5,100 91 17 5,100 29 4 Interest rate options Interest rate 8,380 50 9 8,050 83 — Interest rate forwards Interest rate 11,839 65 544 9,808 627 109 Foreign currency swaps Foreign currency exchange rate 993 94 22 956 94 21 Foreign currency forwards Foreign currency exchange rate 303 — 3 288 — 4 Credit default swaps — written Credit 1,793 29 2 1,724 39 1 Credit default swaptions Credit — — — 150 — — Equity index options Equity market 24,143 981 776 24,692 1,155 877 Equity variance swaps Equity market 281 9 1 281 9 1 Equity total return swaps Equity market 26,311 536 456 32,719 493 588 Hybrid options Equity market 900 — — 900 8 — Total non-designated or non-qualifying derivatives 82,813 2,077 1,841 87,263 2,862 1,622 Embedded derivatives: Ceded guaranteed minimum income benefits Other N/A 151 — N/A 186 — Direct index-linked annuities Other N/A — 5,309 N/A — 6,211 Direct guaranteed minimum benefits Other N/A — 1,285 N/A — 1,725 Assumed guaranteed minimum benefits Other N/A — 350 N/A — 427 Assumed index-linked annuities Other N/A — 367 N/A — 437 Total embedded derivatives N/A 151 7,311 N/A 186 8,800 Total $ 86,547 $ 2,490 $ 9,172 $ 90,680 $ 3,298 $ 10,444 Based on gross notional amounts, a substantial portion of the Company’s derivatives was not designated or did not qualify as part of a hedging relationship at both March 31, 2022 and December 31, 2021. The Company’s use of derivatives includes (i) derivatives that serve as macro hedges of the Company’s exposure to various risks and generally do not qualify for hedge accounting because they do not meet the criteria required under portfolio hedging rules; (ii) derivatives that economically hedge insurance liabilities and generally do not qualify for hedge accounting because they do not meet the criteria of being “highly effective” as outlined in Accounting Standards Codification 815 — Derivatives and Hedging; (iii) derivatives that economically hedge embedded derivatives that do not qualify for hedge accounting because the changes in estimated fair value of the embedded derivatives are already recorded in net income; and (iv) written credit default swaps that are used to create synthetic credit investments and that do not qualify for hedge accounting because they do not involve a hedging relationship. Net Derivative Gains (Losses) Recognized for Derivatives Net Derivative Gains (Losses) Recognized for Hedged Items Net Investment Income Amount of Gains (Losses) Deferred in AOCI (In millions) Three Months Ended March 31, 2022 Derivatives Designated as Hedging Instruments: Cash flow hedges: Interest rate $ 1 $ — $ 1 $ (21) Foreign currency exchange rate — — 10 41 Total cash flow hedges 1 — 11 20 Derivatives Not Designated or Not Qualifying as Hedging Instruments: Interest rate (1,131) — — — Foreign currency exchange rate 10 (5) — — Credit (7) — — — Equity market 308 — — — Embedded 1,379 — — — Total non-qualifying hedges 559 (5) — — Total $ 560 $ (5) $ 11 $ 20 Three Months Ended March 31, 2021 Derivatives Designated as Hedging Instruments: Cash flow hedges: Interest rate $ 1 $ — $ 1 $ (52) Foreign currency exchange rate 5 (3) 8 (15) Total cash flow hedges 6 (3) 9 (67) Derivatives Not Designated or Not Qualifying as Hedging Instruments: Interest rate (1,912) — — — Foreign currency exchange rate (7) 3 — — Credit 3 — — — Equity market (142) — — — Embedded 665 — — — Total non-qualifying hedges (1,393) 3 — — Total $ (1,387) $ — $ 9 $ (67) At March 31, 2022 and December 31, 2021, the maximum length of time over which the Company was hedging its exposure to variability in future cash flows for forecasted transactions was one two years, respectively. At March 31, 2022 and December 31, 2021, the balance in AOCI associated with cash flow hedges was $338 million and $320 million, respectively. Credit Derivatives In connection with synthetically created credit investment transactions, the Company writes credit default swaps for which it receives a premium to insure credit risk. If a credit event occurs, as defined by the contract, the contract may be cash settled or it may be settled gross by the Company paying the counterparty the specified swap notional amount in exchange for the delivery of par quantities of the referenced credit obligation. The estimated fair value, maximum amount of future payments and weighted average years to maturity of written credit default swaps were as follows at: March 31, 2022 December 31, 2021 Rating Agency Designation of Referenced Credit Obligations (1) Estimated Maximum Weighted Estimated Maximum Weighted (Dollars in millions) Aaa/Aa/A $ 9 $ 599 2.2 $ 12 $ 589 2.4 Baa 16 1,166 5.3 27 1,131 5.0 Ba 3 24 4.7 — — 0.0 Caa and Lower (1) 4 3.7 (1) 4 4.0 Total $ 27 $ 1,793 4.3 $ 38 $ 1,724 4.1 _______________ (1) The Company has written credit protection on both single name and index references. The rating agency designations are based on availability and the midpoint of the applicable ratings among Moody’s, S&P and Fitch. If no rating is available from a rating agency, then an internally developed rating is used. (2) The weighted average years to maturity of the credit default swaps is calculated based on weighted average gross notional amounts. Counterparty Credit Risk The Company may be exposed to credit-related losses in the event of counterparty nonperformance on derivative instruments. Generally, the credit exposure is the fair value at the reporting date less any collateral received from the counterparty. The Company manages its credit risk by: (i) entering into derivative transactions with creditworthy counterparties governed by master netting agreements; (ii) trading through regulated exchanges and central clearing counterparties; (iii) obtaining collateral, such as cash and securities, when appropriate; and (iv) setting limits on single party credit exposures which are subject to periodic management review. See Note 6 for a description of the impact of credit risk on the valuation of derivatives. The estimated fair values of net derivative assets and net derivative liabilities after the application of master netting agreements and collateral were as follows at: Gross Amounts Not Offset on the Consolidated Balance Sheets Gross Amount Recognized Financial Instruments (1) Collateral Received/Pledged (2) Net Amount Securities Collateral Received/Pledged (3) Net Amount After Securities Collateral (In millions) March 31, 2022 Derivative assets $ 2,363 $ (1,321) $ (837) $ 205 $ (188) $ 17 Derivative liabilities $ 1,854 $ (1,321) $ — $ 533 $ (533) $ — December 31, 2021 Derivative assets $ 3,113 $ (1,155) $ (1,480) $ 478 $ (413) $ 65 Derivative liabilities $ 1,632 $ (1,155) $ — $ 477 $ (477) $ — _______________ (1) Represents amounts subject to an enforceable master netting agreement or similar agreement. (2) The amount of cash collateral offset in the table above is limited to the net estimated fair value of derivatives after application of netting agreement. (3) Securities collateral received from counterparties is not reported on the consolidated balance sheets and may not be sold or re-pledged unless the counterparty is in default. Amounts do not include excess of collateral pledged or received. The Company’s collateral arrangements generally require the counterparty in a net liability position, after considering the effect of netting agreements, to pledge collateral when the amount owed by that counterparty reaches a minimum transfer amount. Certain of these arrangements also include credit-contingent provisions which permit the party with positive fair value to terminate the derivative at the current fair value or demand immediate full collateralization from the party in a net liability position, in the event that the financial strength or credit rating of the party in a net liability position falls below a certain level. The aggregate estimated fair values of derivatives in a net liability position containing such credit-contingent provisions and the aggregate estimated fair value of assets posted as collateral for such instruments were as follows at: March 31, 2022 December 31, 2021 (In millions) Estimated fair value of derivatives in a net liability position (1) $ 533 $ 477 Estimated Fair Value of Collateral Provided (2): Fixed maturity securities $ 1,465 $ 839 _______________ (1) After taking into consideration the existence of netting agreements. (2) Substantially all of the Company’s collateral arrangements provide for daily posting of collateral for the full value of the derivative contract. As a result, if the credit-contingent provisions of derivative contracts in a net liability position were triggered, minimal additional assets would be required to be posted as collateral or needed to settle the instruments immediately. |
Fair Value
Fair Value | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value | 6. Fair Value Considerable judgment is often required in interpreting market data to develop estimates of fair value, and the use of different assumptions or valuation methodologies may have a material effect on the estimated fair value amounts. Recurring Fair Value Measurements The assets and liabilities measured at estimated fair value on a recurring basis and their corresponding placement in the fair value hierarchy are presented in the tables below. Investments that do not have a readily determinable fair value and are measured at net asset value (or equivalent) as a practical expedient to estimated fair value are excluded from the fair value hierarchy. March 31, 2022 Fair Value Hierarchy Total Estimated Level 1 Level 2 Level 3 (In millions) Assets Fixed maturity securities: U.S. corporate $ — $ 34,416 $ 1,035 $ 35,451 Foreign corporate — 10,364 583 10,947 RMBS — 8,675 17 8,692 U.S. government and agency 4,093 5,370 — 9,463 CMBS — 6,888 6 6,894 State and political subdivision — 4,240 — 4,240 ABS — 4,333 171 4,504 Foreign government — 1,288 23 1,311 Total fixed maturity securities 4,093 75,574 1,835 81,502 Equity securities 20 42 13 75 Short-term investments 90 21 — 111 Derivative assets: (1) Interest rate — 434 — 434 Foreign currency exchange rate — 335 15 350 Credit — 20 9 29 Equity market — 1,517 9 1,526 Total derivative assets — 2,306 33 2,339 Embedded derivatives within asset host contracts (2) — — 151 151 Separate account assets 44 96,951 — 96,995 Total assets $ 4,247 $ 174,894 $ 2,032 $ 181,173 Liabilities Derivative liabilities: (1) Interest rate $ — $ 581 $ — $ 581 Foreign currency exchange rate — 45 — 45 Credit — — 2 2 Equity market — 1,232 1 1,233 Total derivative liabilities — 1,858 3 1,861 Embedded derivatives within liability host contracts (2) — — 7,311 7,311 Total liabilities $ — $ 1,858 $ 7,314 $ 9,172 December 31, 2021 Fair Value Hierarchy Total Estimated Level 1 Level 2 Level 3 (In millions) Assets Fixed maturity securities: U.S. corporate $ — $ 37,568 $ 906 $ 38,474 Foreign corporate — 11,112 493 11,605 RMBS — 9,209 11 9,220 U.S. government and agency 3,159 6,009 — 9,168 CMBS — 7,149 44 7,193 State and political subdivision — 4,760 — 4,760 ABS — 4,110 165 4,275 Foreign government — 1,806 26 1,832 Total fixed maturity securities 3,159 81,723 1,645 86,527 Equity securities 21 61 13 95 Short-term investments 640 20 2 662 Derivative assets: (1) Interest rate — 1,094 — 1,094 Foreign currency exchange rate — 304 10 314 Credit — 27 12 39 Equity market — 1,649 16 1,665 Total derivative assets — 3,074 38 3,112 Embedded derivatives within asset host contracts (2) — — 186 186 Separate account assets 41 106,184 — 106,225 Total assets $ 3,861 $ 191,062 $ 1,884 $ 196,807 Liabilities Derivative liabilities: (1) Interest rate $ — $ 130 $ — $ 130 Foreign currency exchange rate — 47 — 47 Credit — — 1 1 Equity market — 1,465 1 1,466 Total derivative liabilities — 1,642 2 1,644 Embedded derivatives within liability host contracts (2) — — 8,800 8,800 Total liabilities $ — $ 1,642 $ 8,802 $ 10,444 _______________ (1) Derivative assets are presented within other invested assets on the consolidated balance sheets and derivative liabilities are presented within other liabilities on the consolidated balance sheets. The amounts are presented gross in the tables above to reflect the presentation on the consolidated balance sheets. Valuation Controls and Procedures The Company monitors and provides oversight of valuation controls and policies for securities, mortgage loans and derivatives, which are primarily executed by its valuation service providers. The valuation methodologies used to determine fair values prioritize the use of observable market prices and market-based parameters and determines that judgmental valuation adjustments, when applied, are based upon established policies and are applied consistently over time. The valuation methodologies for securities, mortgage loans and derivatives are reviewed on an ongoing basis and revised when necessary. In addition, the Chief Accounting Officer periodically reports to the Audit Committee of Brighthouse Financial’s Board of Directors regarding compliance with fair value accounting standards. The fair value of financial assets and financial liabilities is based on quoted market prices, where available. Prices received are assessed to determine if they represent a reasonable estimate of fair value. Several controls are performed, including certain monthly controls, which include, but are not limited to, analysis of portfolio returns to corresponding benchmark returns, comparing a sample of executed prices of securities sold to the fair value estimates, reviewing the bid/ask spreads to assess activity, comparing prices from multiple independent pricing services and ongoing due diligence to confirm that independent pricing services use market-based parameters. The process includes a determination of the observability of inputs used in estimated fair values received from independent pricing services or brokers by assessing whether these inputs can be corroborated by observable market data. Independent non-binding broker quotes, also referred to herein as “consensus pricing,” are used for a non-significant portion of the portfolio. Prices received from independent brokers are assessed to determine if they represent a reasonable estimate of fair value by considering such pricing relative to the current market dynamics and current pricing for similar financial instruments. A formal process is also applied to challenge any prices received from independent pricing services that are not considered representative of estimated fair value. If prices received from independent pricing services are not considered reflective of market activity or representative of estimated fair value, independent non-binding broker quotations are obtained. If obtaining an independent non-binding broker quotation is unsuccessful, the last available price will be used. Additional controls are performed, such as, balance sheet analytics to assess reasonableness of period-to-period pricing changes, including any price adjustments. Price adjustments are applied if prices or quotes received from independent pricing services or brokers are not considered reflective of market activity or representative of estimated fair value. The Company did not have significant price adjustments during the three months ended March 31, 2022. Determination of Fair Value Fixed Maturity Securities The fair values for actively traded marketable bonds, primarily U.S. government and agency securities, are determined using the quoted market prices and are classified as Level 1 assets. For fixed maturity securities classified as Level 2 assets, fair values are determined using either a market or income approach and are valued based on a variety of observable inputs as described below. U.S. corporate and foreign corporate securities: Fair value is determined using third-party commercial pricing services, with the primary inputs being quoted prices in markets that are not active, benchmark yields, spreads off benchmark yields, new issuances, issuer rating, trades of identical or comparable securities, or duration. Privately-placed securities are valued using the additional key inputs: market yield curve, call provisions, observable prices and spreads for similar public or private securities that incorporate the credit quality and industry sector of the issuer, and delta spread adjustments to reflect specific credit-related issues. U.S. government and agency, state and political subdivision and foreign government securities: Fair value is determined using third-party commercial pricing services, with the primary inputs being quoted prices in markets that are not active, benchmark U.S. Treasury yield or other yields, spread off the U.S. Treasury yield curve for the identical security, issuer ratings and issuer spreads, broker-dealer quotes, and comparable securities that are actively traded. Structured Securities: Fair value is determined using third-party commercial pricing services, with the primary inputs being quoted prices in markets that are not active, spreads for actively traded securities, spreads off benchmark yields, expected prepayment speeds and volumes, current and forecasted loss severity, ratings, geographic region, weighted average coupon and weighted average maturity, average delinquency rates and debt-service coverage ratios. Other issuance-specific information is also used, including, but not limited to, collateral type, structure of the security, vintage of the loans, payment terms of the underlying asset, payment priority within tranche, and deal performance. Equity Securities and Short-term Investments The fair value for actively traded equity securities and short-term investments are determined using quoted market prices and are classified as Level 1 assets. For financial instruments classified as Level 2 assets, fair values are determined using a market approach and are valued based on a variety of observable inputs as described below. Equity securities and short-term investments: Fair value is determined using third-party commercial pricing services, with the primary input being quoted prices in markets that are not active. Derivatives Derivatives are financial instruments with values derived from interest rates, foreign currency exchange rates, credit spreads and/or other financial indices. Derivatives may be exchange-traded or contracted in the over-the-counter (“OTC”) market. Certain of the Company’s OTC derivatives are cleared and settled through central clearing counterparties (“OTC-cleared”), while others are bilateral contracts between two counterparties (“OTC-bilateral”). The fair values for exchange-traded derivatives are determined using the quoted market prices and are classified as Level 1 assets. For OTC-bilateral derivatives and OTC-cleared derivatives classified as Level 2 assets or liabilities, fair values are determined using the income approach. Valuations of non-option-based derivatives utilize present value techniques, whereas valuations of option-based derivatives utilize option pricing models which are based on market standard valuation methodologies and a variety of observable inputs. The significant inputs to the pricing models for most OTC-bilateral and OTC-cleared derivatives are inputs that are observable in the market or can be derived principally from, or corroborated by, observable market data. Certain OTC-bilateral and OTC-cleared derivatives may rely on inputs that are significant to the estimated fair value that are not observable in the market or cannot be derived principally from, or corroborated by, observable market data. These unobservable inputs may involve significant management judgment or estimation. Even though unobservable, these inputs are based on assumptions deemed appropriate given the circumstances and management believes they are consistent with what other market participants would use when pricing such instruments. Most inputs for OTC-bilateral and OTC-cleared derivatives are mid-market inputs but, in certain cases, liquidity adjustments are made when they are deemed more representative of exit value. Market liquidity, as well as the use of different methodologies, assumptions and inputs, may have a material effect on the estimated fair values of the Company’s derivatives and could materially affect net income. The credit risk of both the counterparty and the Company are considered in determining the estimated fair value for all OTC-bilateral and OTC-cleared derivatives, and any potential credit adjustment is based on the net exposure by counterparty after taking into account the effects of netting agreements and collateral arrangements. The Company values its OTC-bilateral and OTC-cleared derivatives using standard swap curves which may include a spread to the risk-free rate, depending upon specific collateral arrangements. This credit spread is appropriate for those parties that execute trades at pricing levels consistent with similar collateral arrangements. As the Company and its significant derivative counterparties generally execute trades at such pricing levels and hold sufficient collateral, additional credit risk adjustments are not currently required in the valuation process. The Company’s ability to consistently execute at such pricing levels is in part due to the netting agreements and collateral arrangements that are in place with all of its significant derivative counterparties. An evaluation of the requirement to make additional credit risk adjustments is performed by the Company each reporting period. Embedded Derivatives Embedded derivatives principally include certain direct and ceded variable annuity guarantees and equity crediting rates within index-linked annuity contracts. Embedded derivatives are recorded at estimated fair value with changes in estimated fair value reported in net income. The Company issues certain variable annuity products with guaranteed minimum benefits. Guaranteed minimum accumulation benefits (“GMAB”), the non-life contingent portion of GMWBs and certain portions of GMIBs are accounted for as embedded derivatives and measured at estimated fair value separately from the host variable annuity contract. These embedded derivatives are classified within policyholder account balances on the consolidated balance sheets, with changes in estimated fair value reported in net derivative gains (losses). The Company determines the fair value of these embedded derivatives by estimating the present value of projected future benefits minus the present value of projected future fees using actuarial and capital markets assumptions including expectations of policyholder behavior. The calculation is based on in-force business and is performed using standard actuarial valuation software which projects future cash flows from the embedded derivative over multiple risk neutral stochastic scenarios using observable risk-free rates. The percentage of fees included in the initial fair value measurement is not updated in subsequent periods. Capital markets assumptions, such as risk-free rates and implied volatilities, are based on market prices for publicly-traded instruments to the extent that prices for such instruments are observable. Implied volatilities beyond the observable period are extrapolated based on observable implied volatilities and historical volatilities. Actuarial assumptions, including mortality, lapse, withdrawal and utilization, are unobservable and are reviewed at least annually based on actuarial studies of historical experience. The valuation of these guarantee liabilities includes nonperformance risk adjustments and adjustments for a risk margin related to non-capital markets inputs. The nonperformance adjustment is determined by taking into consideration publicly available information relating to spreads in the secondary market for BHF’s debt. These observable spreads are then adjusted to reflect the priority of these liabilities and claims-paying ability of the issuing insurance subsidiaries as compared to BHF’s overall financial strength. Risk margins are established to capture the non-capital markets risks of the instrument which represent the additional compensation a market participant would require to assume the risks related to the uncertainties of such actuarial assumptions as annuitization, premium persistency, partial withdrawal and surrenders. The establishment of risk margins requires the use of significant management judgment, including assumptions of the amount and cost of capital needed to cover the guarantees. The Company issues and assumes through reinsurance index-linked annuities which allow the policyholder to participate in returns from equity indices. The crediting rates associated with these features are embedded derivatives which are measured at estimated fair value separately from the host fixed annuity contract, with changes in estimated fair value reported in net derivative gains (losses). These embedded derivatives are classified within policyholder account balances on the consolidated balance sheets. The estimated fair value of crediting rates associated with index-linked annuities is determined using a combination of an option pricing model and an option-budget approach. The valuation of these embedded derivatives also includes the establishment of a risk margin, as well as changes in nonperformance risk. Transfers Into or Out of Level 3: Assets and liabilities are transferred into Level 3 when a significant input cannot be corroborated with market observable data. This occurs when market activity decreases significantly and underlying inputs cannot be observed, current prices are not available, and/or when there are significant variances in quoted prices, thereby affecting transparency. Assets and liabilities are transferred out of Level 3 when circumstances change such that a significant input can be corroborated with market observable data. This may be due to a significant increase in market activity, a specific event, or one or more significant input(s) becoming observable. Assets and Liabilities Measured at Fair Value Using Significant Unobservable Inputs (Level 3) Certain quantitative information about the significant unobservable inputs used in the fair value measurement, and the sensitivity of the estimated fair value to changes in those inputs, for the more significant asset and liability classes measured at fair value on a recurring basis using significant unobservable inputs (Level 3) were as follows at: March 31, 2022 December 31, 2021 Impact of Valuation Significant Range Range Embedded derivatives Direct, assumed and ceded guaranteed minimum benefits • Option pricing • Mortality rates 0.03% - 12.62% 0.03% - 12.62% Decrease (1) • Lapse rates 0.30% - 14.50% 0.30% - 14.50% Decrease (2) • Utilization rates 0.00% - 25.00% 0.00% - 25.00% Increase (3) • Withdrawal rates 0.25% - 10.00% 0.25% - 10.00% (4) • Long-term equity volatilities 16.44% - 22.16% 16.44% - 22.16% Increase (5) • Nonperformance risk spread 0.10% - 1.74% (0.38)% - 1.49% Decrease (6) _______________ (1) Mortality rates vary by age and by demographic characteristics such as gender. The range shown reflects the mortality rate for policyholders between 35 and 90 years old, which represents the majority of the business with living benefits. Mortality rate assumptions are set based on company experience and include an assumption for mortality improvement. (2) The range shown reflects base lapse rates for major product categories for duration 1-20, which represents majority of business with living benefit riders. Base lapse rates are adjusted at the contract level based on a comparison of the actuarially calculated guaranteed values and the current policyholder account value, as well as other factors, such as the applicability of any surrender charges. 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. Lapse rates are also generally assumed to be lower in periods when a surrender charge applies. (3) The utilization rate assumption estimates the percentage of contract holders with a GMIB or lifetime withdrawal benefit who will elect to utilize the benefit upon becoming eligible in a given year. The range shown represents the floor and cap of the GMIB dynamic election rates across varying levels of in-the-money. For lifetime withdrawal guarantee riders, the assumption is that everyone will begin withdrawals once account value reaches zero which is equivalent to a 100% utilization rate. Utilization rates may vary by the type of guarantee, the amount by which the guaranteed amount is greater than the account value, the contract’s withdrawal history and by the age of the policyholder. (4) The withdrawal rate represents the percentage of account balance that any given policyholder will elect to withdraw from the contract each year. The withdrawal rate assumption varies by age and duration of the contract, and also by other factors such as benefit type. For any given contract, withdrawal rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. For GMWBs, any increase (decrease) in withdrawal rates results in an increase (decrease) in the estimated fair value of the guarantees. For GMABs and GMIBs, any increase (decrease) in withdrawal rates results in a decrease (increase) in the estimated fair value. (5) Long-term equity volatilities represent equity volatility beyond the period for which observable equity volatilities are available. For any given contract, long-term equity volatility rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. (6) Nonperformance risk spread varies by duration. For any given contract, multiple nonperformance risk spreads will apply, depending on the duration of the cash flow being discounted for purposes of valuing the embedded derivative. The Company does not develop unobservable inputs used in measuring fair value for all other assets and liabilities classified within Level 3; therefore, these are not included in the table above. The other Level 3 assets and liabilities primarily included fixed maturity securities and derivatives. For fixed maturity securities valued based on non-binding broker quotes, an increase (decrease) in credit spreads would result in a higher (lower) fair value. For derivatives valued Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Fixed Maturity Securities Corporate (1) Structured Securities Foreign Equity Short-term Net Net Embedded Separate (In millions) Three Months Ended March 31, 2022 Balance, beginning of period $ 1,399 $ 220 $ 26 $ 13 $ 2 $ 36 $ (8,614) $ — Total realized/unrealized gains (losses) included in net income (loss) (5) (6) — — — — — (10) 1,379 — Total realized/unrealized gains (losses) included in AOCI (99) (5) (3) — — 4 — — Purchases (7) 422 87 — — — — — — Sales (7) (93) (2) — — (2) — — — Issuances (7) — — — — — — — — Settlements (7) — — — — — — 75 — Transfers into Level 3 (8) 86 1 — — — — — — Transfers out of Level 3 (8) (97) (107) — — — — — — Balance, end of period $ 1,618 $ 194 $ 23 $ 13 $ — $ 30 $ (7,160) $ — Three Months Ended March 31, 2021 Balance, beginning of period $ 684 $ 67 $ — $ 3 $ — $ 2 $ (7,301) $ 3 Total realized/unrealized gains (losses) included in net income (loss) (5) (6) (1) — — — — 8 665 — Total realized/unrealized gains (losses) included in AOCI (22) — — — — (1) — — Purchases (7) 118 80 — — — (2) — — Sales (7) (4) (3) — — — — — (1) Issuances (7) — — — — — — — — Settlements (7) — — — — — — (138) — Transfers into Level 3 (8) 4 3 — — — — — — Transfers out of Level 3 (8) (112) (21) — — — 1 — — Balance, end of period $ 667 $ 126 $ — $ 3 $ — $ 8 $ (6,774) $ 2 Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at March 31, 2022 (9) $ — $ — $ — $ — $ — $ (10) $ 1,517 $ — Changes in unrealized gains (losses) included in OCI for the instruments still held at March 31, 2022 (9) $ (98) $ (5) $ (3) $ — $ — $ 4 $ — $ — Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at March 31, 2021 (9) $ (1) $ — $ — $ — $ — $ 8 $ 663 $ — Changes in unrealized gains (losses) included in OCI for the instruments still held at March 31, 2021 (9) $ (22) $ — $ — $ — $ — $ (1) $ — $ — _______________ (1) Comprised of U.S. and foreign corporate securities. (2) Freestanding derivative assets and liabilities are presented net for purposes of the rollforward. (3) Embedded derivative assets and liabilities are presented net for purposes of the rollforward. (4) Investment performance related to separate account assets is fully offset by corresponding amounts credited to contract holders within separate account liabilities. Therefore, such changes in estimated fair value are not recorded in net income (loss). For the purpose of this disclosure, these changes are presented within net investment gains (losses). (5) Amortization of premium/accretion of discount is included within net investment income. Changes in the allowance for credit losses and direct write-offs are charged to net income (loss) on securities are included in net investment gains (losses). Lapses associated with net embedded derivatives are included in net derivative gains (losses). Substantially all realized/unrealized gains (losses) included in net income (loss) for net derivatives and net embedded derivatives are reported in net derivative gains (losses). (6) Interest and dividend accruals, as well as cash interest coupons and dividends received, are excluded from the rollforward. (7) Items purchased/issued and then sold/settled in the same period are excluded from the rollforward. Fees attributed to embedded derivatives are included in settlements. (8) Gains and losses, in net income (loss) and OCI, are calculated assuming transfers into and/or out of Level 3 occurred at the beginning of the period. Items transferred into and then out of Level 3 in the same period are excluded from the rollforward. (9) Changes in unrealized gains (losses) included in net income (loss) for fixed maturities are reported in either net investment income or net investment gains (losses). Substantially all changes in unrealized gains (losses) included in net income (loss) for net derivatives and net embedded derivatives are reported in net derivative gains (losses). Fair Value of Financial Instruments Carried at Other Than Fair Value The following tables provide fair value information for financial instruments that are carried on the balance sheet at amounts other than fair value. These tables exclude the following financial instruments: cash and cash equivalents, accrued investment income and payables for collateral under securities loaned and other transactions. The estimated fair value of the excluded financial instruments, which are primarily classified in Level 2, approximates carrying value as they are short-term in nature such that the Company believes there is minimal risk of material changes in interest rates or credit quality. All remaining balance sheet amounts excluded from the tables below are not considered financial instruments subject to this disclosure. The carrying values and estimated fair values for such financial instruments, and their corresponding placement in the fair value hierarchy, are summarized as follows at: March 31, 2022 Fair Value Hierarchy Carrying Level 1 Level 2 Level 3 Total (In millions) Assets Mortgage loans $ 21,295 $ — $ — $ 21,083 $ 21,083 Policy loans $ 876 $ — $ 477 $ 506 $ 983 Other invested assets $ 104 $ — $ 89 $ 15 $ 104 Premiums, reinsurance and other receivables $ 3,080 $ — $ 31 $ 3,519 $ 3,550 Liabilities Policyholder account balances $ 24,881 $ — $ — $ 24,366 $ 24,366 Long-term debt $ 840 $ — $ 33 $ 903 $ 936 Other liabilities $ 1,089 $ — $ 269 $ 820 $ 1,089 Separate account liabilities $ 1,304 $ — $ 1,304 $ — $ 1,304 December 31, 2021 Fair Value Hierarchy Carrying Level 1 Level 2 Level 3 Total (In millions) Assets Mortgage loans $ 19,787 $ — $ — $ 20,591 $ 20,591 Policy loans $ 869 $ — $ 470 $ 568 $ 1,038 Other invested assets $ 85 $ — $ 70 $ 15 $ 85 Premiums, reinsurance and other receivables $ 3,075 $ — $ 20 $ 3,583 $ 3,603 Liabilities Policyholder account balances $ 23,507 $ — $ — $ 23,487 $ 23,487 Long-term debt $ 841 $ — $ 36 $ 1,087 $ 1,123 Other liabilities $ 886 $ — $ 60 $ 816 $ 876 Separate account liabilities $ 1,437 $ — $ 1,437 $ — $ 1,437 |
Equity
Equity | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Equity | 7. Equity Accumulated Other Comprehensive Income (Loss) Information regarding changes in the balances of each component of AOCI was as follows: Three Months Ended March 31, 2022 Unrealized Unrealized Foreign Total (In millions) Balance at December 31, 2021 $ 3,675 $ 233 $ (7) $ 3,901 OCI before reclassifications (4,595) 20 (8) (4,583) Deferred income tax benefit (expense) (2) 965 (4) 1 962 AOCI before reclassifications, net of income tax 45 249 (14) 280 Amounts reclassified from AOCI 41 (2) — 39 Deferred income tax benefit (expense) (2) (9) 1 — (8) Amounts reclassified from AOCI, net of income tax 32 (1) — 31 Balance at March 31, 2022 $ 77 $ 248 $ (14) $ 311 Three Months Ended March 31, 2021 Unrealized Unrealized Foreign Total (In millions) Balance at December 31, 2020 $ 5,321 $ 108 $ (8) $ 5,421 OCI before reclassifications (2,737) (67) (8) (2,812) Deferred income tax benefit (expense) (2) 575 14 2 591 AOCI before reclassifications, net of income tax 3,159 55 (14) 3,200 Amounts reclassified from AOCI (12) (7) — (19) Deferred income tax benefit (expense) (2) 3 1 — 4 Amounts reclassified from AOCI, net of income tax (9) (6) — (15) Balance at March 31, 2021 $ 3,150 $ 49 $ (14) $ 3,185 _______________ (1) See Note 4 for information on offsets to investments related to future policy benefits, DAC, VOBA and DSI. (2) The effects of income taxes on amounts recorded to AOCI are also recognized in AOCI. These income tax effects are released from AOCI when the related activity is reclassified into results from operations. Information regarding amounts reclassified out of each component of AOCI was as follows: AOCI Components Amounts Reclassified from AOCI Consolidated Statements of Operations and Comprehensive Income (Loss) Locations Three Months Ended 2022 2021 (In millions) Net unrealized investment gains (losses): Net unrealized investment gains (losses) $ (39) $ 15 Net investment gains (losses) Net unrealized investment gains (losses) (2) (3) Net derivative gains (losses) Net unrealized investment gains (losses), before income tax (41) 12 Income tax (expense) benefit 9 (3) Net unrealized investment gains (losses), net of income tax (32) 9 Unrealized gains (losses) on derivatives - cash flow hedges: Interest rate swaps 1 1 Net derivative gains (losses) Interest rate swaps 1 1 Net investment income Foreign currency swaps — 5 Net derivative gains (losses) Gains (losses) on cash flow hedges, before income tax 2 7 Income tax (expense) benefit (1) (1) Gains (losses) on cash flow hedges, net of income tax 1 6 Total reclassifications, net of income tax $ (31) $ 15 |
Other Revenues and Other Expens
Other Revenues and Other Expenses | 3 Months Ended |
Mar. 31, 2022 | |
Other Income and Expenses [Abstract] | |
Other Revenues and Other Expenses | 8. Other Revenues and Other Expenses Other Revenues The Company has entered into contracts with mutual funds, fund managers, and their affiliates (collectively, the “Funds”) whereby the Company is paid monthly or quarterly fees (“12b-1 fees”) for providing certain services to customers and distributors of the Funds. The 12b-1 fees are generally equal to a fixed percentage of the average daily balance of the customer’s investment in a fund. The percentage is specified in the contract between the Company and the Funds. Payments are generally collected when due and are neither refundable nor able to offset future fees. To earn these fees, the Company performs services such as responding to phone inquiries, maintaining records, providing information to distributors and shareholders about fund performance and providing training to account managers and sales agents. The passage of time reflects the satisfaction of the Company’s performance obligations to the Funds and is used to recognize revenue associated with 12b-1 fees. Other revenues consisted primarily of 12b-1 fees of $61 million and $65 million for the three months ended March 31, 2022 and 2021, respectively, of which substantially all were reported in the Annuities segment. Other Expenses Information on other expenses was as follows: Three Months Ended 2022 2021 (In millions) Compensation $ 81 $ 85 Contracted services and other labor costs 50 53 Transition services agreements 26 30 Establishment costs 14 16 Premium and other taxes, licenses and fees 12 13 Volume related costs, excluding compensation, net of DAC capitalization 137 158 Interest expense on debt 17 17 Other 49 52 Total other expenses $ 386 $ 424 Related Party Expenses See Note 10 for a discussion of related party expenses included in the table above. |
Contingencies, Commitments and
Contingencies, Commitments and Guarantees | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies, Commitments and Guarantees | 9. Contingencies, Commitments and Guarantees Contingencies Litigation The Company is a defendant in a number of litigation matters. In some of the matters, large or indeterminate amounts, including punitive and treble damages, are sought. Modern pleading practice in the U.S. permits considerable variation in the assertion of monetary damages or other relief. Jurisdictions may permit claimants not to specify the monetary damages sought or may permit claimants to state only that the amount sought is sufficient to invoke the jurisdiction of the trial court. In addition, jurisdictions may permit plaintiffs to allege monetary damages in amounts well exceeding reasonably possible verdicts in the jurisdiction for similar matters. This variability in pleadings, together with the actual experience of the Company in litigating or resolving through settlement numerous claims over an extended period of time, demonstrates to management that the monetary relief which may be specified in a lawsuit or claim bears little relevance to its merits or disposition value. The Company also receives and responds to subpoenas or other inquiries seeking a broad range of information from various state and federal regulators, agencies and officials. The issues involved in information requests and regulatory matters vary widely, but can include inquiries or investigations concerning the Company’s compliance with applicable insurance and other laws and regulations. The Company cooperates in these inquiries. Due to the vagaries of litigation, the outcome of a litigation matter and the amount or range of potential loss at particular points in time may normally be difficult to ascertain. Uncertainties can include how fact finders will evaluate documentary evidence and the credibility and effectiveness of witness testimony, and how trial and appellate courts will apply the law in the context of the pleadings or evidence presented, whether by motion practice, or at trial or on appeal. Disposition valuations are also subject to the uncertainty of how opposing parties and their counsel will themselves view the relevant evidence and applicable law. The Company establishes liabilities for litigation and regulatory loss contingencies when it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. It is possible that some matters could require the Company to pay damages or make other expenditures or establish accruals in amounts that could not be estimated at March 31, 2022. Matters as to Which an Estimate Can Be Made For some loss contingency matters, the Company is able to estimate a reasonably possible range of loss. For such matters where a loss is believed to be reasonably possible, but not probable, no accrual has been made. In addition to amounts accrued for probable and reasonably estimable losses, as of March 31, 2022, the Company estimates the aggregate range of reasonably possible losses to be up to approximately $10 million. Matters as to Which an Estimate Cannot Be Made For other matters, the Company is not currently 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 other parties and investigation of factual allegations, rulings by the court on motions or appeals, analysis by experts, and the progress of settlement negotiations. On a quarterly and annual basis, the Company reviews relevant information with respect to litigation contingencies and updates its accruals, disclosures and estimates of reasonably possible losses or ranges of loss based on such reviews. Sales Practices Claims Over the past several years, the Company has faced claims and regulatory inquiries and investigations, alleging improper marketing or sales of individual life insurance policies, annuities or other products. The Company continues to defend vigorously against the claims in these matters. The Company believes adequate provision has been made in its consolidated financial statements for all probable and reasonably estimable losses for sales practices matters. Cost of Insurance Class Actions Richard A. Newton v. Brighthouse Life Insurance Company (U.S. District Court, Northern District of Georgia, Atlanta Division, filed May 8, 2020). Plaintiff has filed a purported class action lawsuit against Brighthouse Life Insurance Company. Plaintiff was the owner of a universal life insurance policy issued by Travelers Insurance Company, a predecessor to Brighthouse Life Insurance Company. Plaintiff seeks to certify a class of all persons who own or owned life insurance policies issued where the terms of the life insurance policy provide or provided, among other things, a guarantee that the cost of insurance rates would not be increased by more than a specified percentage in any contract year. Plaintiff alleges, among other things, causes of action for breach of contract, fraud, suppression and concealment, and violation of the Georgia Racketeer Influenced and Corrupt Organizations Act. Plaintiff seeks to recover damages, including punitive damages, interest and treble damages, attorneys’ fees, and injunctive and declaratory relief. Brighthouse Life Insurance Company filed a motion to dismiss in June 2020, which was granted in part and denied in part in March 2021. Plaintiff was granted leave to amend the complaint. The Company intends to vigorously defend this matter. Lawrence Martin v. Brighthouse Life Insurance Company (U.S. District Court, Southern District of New York, filed April 6, 2021). Plaintiff has filed a purported class action lawsuit against Brighthouse Life Insurance Company. Plaintiff is the owner of a universal life insurance policy issued by Travelers Insurance Company, a predecessor to Brighthouse Life Insurance Company. Plaintiff seeks to certify a class of similarly situated owners of universal life insurance policies issued or administered by defendants and alleges that cost of insurance charges should have decreased over time due to improving mortality but did not. Plaintiff alleges, among other things, causes of action for breach of contract, breach of the covenant of good faith and fair dealing, and unjust enrichment. Plaintiff seeks to recover compensatory damages, attorney’s fees, interest, and equitable relief including a constructive trust. Brighthouse Life Insurance Company filed a motion to dismiss in June 2021, which was denied in February 2022. Brighthouse Life Insurance Company of NY was initially named as a defendant when the lawsuit was filed, but was dismissed as a defendant, without prejudice, in April 2022. The Company intends to vigorously defend this matter. Summary Various litigations, claims and assessments against the Company, in addition to those discussed previously and those otherwise provided for in the Company’s consolidated financial statements, have arisen in the course of the Company’s business, including, but not limited to, in connection with its activities as an insurer, investor and taxpayer. Further, state insurance regulatory authorities and other federal and state authorities regularly make inquiries and conduct investigations concerning the Company’s compliance with applicable insurance and other laws and regulations. It is not possible to predict the ultimate outcome of all pending investigations and legal proceedings. In some of the matters referred to previously, large or indeterminate amounts, including punitive and treble damages, are sought. Although, in light of these considerations, it is possible that an adverse outcome in certain cases could have a material effect upon the Company’s financial position, based on information currently known by the Company’s management, in its opinion, the outcomes of such pending investigations and legal proceedings are not likely to have such an effect. However, given the large or indeterminate amounts sought in certain of these matters and the inherent unpredictability of litigation, it is possible that an adverse outcome in certain matters could, from time to time, have a material effect on the Company’s consolidated net income or cash flows in particular quarterly or annual periods. Other Loss Contingencies As with litigation and regulatory loss contingencies, the Company considers establishing liabilities for loss contingencies associated with disputes or other matters involving third parties, including counterparties to contractual arrangements entered into by the Company (e.g., third-party vendors and reinsurers), as well as with tax authorities (“other loss contingencies”). The Company establishes liabilities for such other loss contingencies when it is probable that a loss will be incurred and the amount of the loss can be reasonably estimated. In matters where it is not probable, but is reasonably possible that a loss will be incurred and the amount of loss can be reasonably estimated, such losses or range of losses are disclosed, and no accrual is made. In the absence of sufficient information to support an assessment of the reasonably possible loss or range of loss, no accrual is made and no loss or range of loss is disclosed. In the matters where the Company’s subsidiaries are acting as the reinsured or the reinsurer, such matters involve assertions by third parties primarily related to rates, fees or reinsured benefit calculations, and in certain of such matters, the counterparty has made a request to arbitrate. As of March 31, 2022, the Company estimates the range of reasonably possible losses in excess of the amounts accrued for certain other loss contingencies to be from zero up to approximately $250 million, which are primarily associated with the above reinsurance-related matters. For certain other matters, the Company may not currently be able to estimate the reasonably possible loss or range of loss until developments in such matters have provided sufficient information to support an assessment of such loss. On a quarterly basis, the Company reviews relevant information with respect to other loss contingencies and, when applicable, updates its accruals, disclosures and estimates of reasonably possible losses or ranges of loss based on such reviews. Commitments Mortgage Loan Commitments The Company commits to lend funds under mortgage loan commitments. The amounts of these mortgage loan commitments were $651 million and $719 million at March 31, 2022 and December 31, 2021, respectively. Commitments to Fund Partnership Investments and Private Corporate Bond Investments The Company commits to fund partnership investments and to lend funds under private corporate bond investments. The amounts of these unfunded commitments were $2.3 billion at both March 31, 2022 and December 31, 2021. Guarantees In the normal course of its business, the Company has provided certain indemnities, guarantees and commitments to third parties such that it may be required to make payments now or in the future. In the context of acquisition, disposition, investment and other transactions, the Company has provided indemnities and guarantees, including those related to tax, environmental and other specific liabilities and other indemnities and guarantees that are triggered by, among other things, breaches of representations, warranties or covenants provided by the Company. In addition, in the normal course of business, the Company provides indemnifications to counterparties in contracts with triggers similar to the foregoing, as well as for certain other liabilities, such as third-party lawsuits. These obligations are often subject to time limitations that vary in duration, including contractual limitations and those that arise by operation of law, such as applicable statutes of limitation. In some cases, the maximum potential obligation under the indemnities and guarantees is subject to a contractual limitation ranging from $6 million to $112 million, with a cumulative maximum of $118 million, while in other cases such limitations are not specified or applicable. Since certain of these obligations are not subject to limitations, the Company does not believe that it is possible to determine the maximum potential amount that could become due under these guarantees in the future. Management believes that it is unlikely the Company will have to make any material payments under these indemnities, guarantees, or commitments. In addition, the Company indemnifies its directors and officers as provided in its charters and bylaws. Also, the Company indemnifies its agents for liabilities incurred as a result of their representation of the Company’s interests. Since these indemnities are generally not subject to limitation with respect to duration or amount, the Company does not believe that it is possible to determine the maximum potential amount that could become due under these indemnities in the future. The Company’s recorded liabilities were $1 million at both March 31, 2022 and December 31, 2021 for indemnities, guarantees and commitments. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 10. Related Party TransactionsThe Company has various existing arrangements with its Brighthouse Financial affiliates and had previous arrangements with MetLife, Inc. (together with its subsidiaries and affiliates, “MetLife”) for services necessary to conduct its activities. Certain of the MetLife services have continued, however, MetLife ceased to be a related party in June 2018. See Note 8 for amounts related to continuing transition services. Other material arrangements between the Company and its related parties not disclosed elsewhere are as follows: Reinsurance Agreements The Company enters into reinsurance agreements primarily as a purchaser of reinsurance for its various insurance products and also as a provider of reinsurance for some insurance products issued by related parties. The Company participates in reinsurance activities in order to limit losses, minimize exposure to significant risks and provide additional capacity for future growth. Information regarding the significant effects of assumed reinsurance with New England Life Insurance Company (“NELICO”), an affiliate, included on the interim condensed consolidated statements of operations and comprehensive income (loss) was as follows: Three Months Ended 2022 2021 (In millions) Premiums $ — $ 2 Universal life and investment-type product policy fees $ 1 $ 2 Other revenues $ — $ 1 Policyholder benefits and claims $ 7 $ 7 Other expenses $ (7) $ (4) Information regarding the significant effects of assumed reinsurance with NELICO included on the interim condensed consolidated balance sheets was as follows at: March 31, 2022 December 31, 2021 (In millions) Assets Premiums, reinsurance and other receivables (net of allowance for credit losses) $ 27 $ 26 Liabilities Future policy benefits $ 120 $ 119 Policyholder account balances $ 350 $ 427 Other policy-related balances $ 10 $ 9 Other liabilities $ 23 $ 26 The Company assumes risks from NELICO related to guaranteed minimum benefits written directly by the cedent. The assumed reinsurance agreements contain embedded derivatives and changes in the estimated fair value are included within net derivative gains (losses). The embedded derivatives associated with these agreements are included within policyholder account balances and were $350 million and $427 million at March 31, 2022 and December 31, 2021, respectively. Net derivative gains (losses) associated with the embedded derivatives were $77 million and $176 million for the three months ended March 31, 2022 and 2021, respectively. Shared Services and Overhead Allocations Brighthouse Services, LLC, an affiliate, currently provides the Company certain services, which include, but are not limited to, treasury, financial planning and analysis, legal, human resources, tax planning, internal audit, financial reporting and information technology. Revenues received from an affiliate related to these agreements, recorded in universal life and investment-type product policy fees, were $54 million and $57 million for the three months ended March 31, 2022 and 2021, respectively. Costs incurred under these arrangements were $223 million and $228 million for the three months ended March 31, 2022 and 2021, respectively, and were recorded in other expenses. The Company had net receivables from/(payables to) affiliates, related to the items discussed above, of ($145) million and ($182) million at March 31, 2022 and December 31, 2021, respectively. Broker-Dealer Transactions The related party expense for the Company was commissions paid on the sale of variable products and passed through to the broker-dealer affiliate. The related party revenue for the Company was fee income passed through the broker-dealer affiliate from trusts and mutual funds whose shares serve as investment options of policyholders of the Company. Fee income received related to these transactions and recorded in other revenues was $52 million and $55 million for the three months ended March 31, 2022 and 2021, respectively. Commission expenses incurred related to these transactions and recorded in other expenses was $230 million and $236 million for the three months ended March 31, 2022 and 2021, respectively. The Company also had related party fee income receivables of $17 million and $19 million at March 31, 2022 and December 31, 2021, respectively. |
Business, Basis of Presentati_2
Business, Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Use of Estimates, Policy [Policy Text Block] | Basis of Presentation The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to adopt accounting policies and make estimates and assumptions that affect amounts reported on the interim condensed consolidated financial statements. In applying these policies and estimates, management makes subjective and complex judgments that frequently require assumptions about matters that are inherently uncertain. Many of these policies, estimates and related judgments are common in the insurance and financial services industries; others are specific to the Company’s business and operations. Actual results could differ from these estimates. |
Consolidation of Subsidiaries, Policy [Policy Text Block] | Consolidation The accompanying interim condensed consolidated financial statements include the accounts of Brighthouse Life Insurance Company and its subsidiaries, as well as partnerships and limited liability companies (“LLC”) that the Company controls. Intercompany accounts and transactions have been eliminated. The Company uses the equity method of accounting for investments in limited partnerships and LLCs when it has more than a minor ownership interest or more than a minor influence over the investee’s operations. The Company generally recognizes its share of the investee’s earnings on a three-month lag in instances where the investee’s financial information is not sufficiently timely or when the investee’s reporting period differs from the Company’s reporting period. When the Company has virtually no influence over the investee’s operations, the investment is carried at fair value. Since the Company is a member of a controlled group of affiliated companies, its results may not be indicative of those of a standalone entity. The accompanying interim condensed consolidated financial statements are unaudited and reflect all adjustments (including normal recurring adjustments) necessary to present fairly the financial position, results of operations and cash flows for the interim periods presented in conformity with GAAP. Interim results are not necessarily indicative of full year performance. The December 31, 2021 consolidated balance sheet data was derived from audited consolidated financial statements included in Brighthouse Life Insurance Company’s Annual Report on Form 10-K for the year ended December 31, 2021 (the “2021 Annual Report”), which include all disclosures required by GAAP. Therefore, these interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements of the Company included in the 2021 Annual Report. |
Investments, Policy [Policy Text Block] | For fixed maturity securities in an unrealized loss position, management first assesses whether the Company intends to sell, or whether it is more likely than not it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to estimated fair value through net investment gains (losses). For fixed maturity securities that do not meet the aforementioned criteria, management evaluates whether the decline in estimated fair value has resulted from credit losses or other factors. Inherent in management’s evaluation of the security are assumptions and estimates about the operations of the issuer and its future earnings potential. Considerations used in the allowance for credit loss evaluation process include, but are not limited to: (i) the extent to which estimated fair value is less than amortized cost; (ii) any changes to the rating of the security by a rating agency; (iii) adverse conditions specifically related to the security, industry or geographic area; and (iv) payment structure of the fixed maturity security and the likelihood of the issuer being able to make payments in the future or the issuer’s failure to make scheduled interest and principal payments. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss is deemed to exist and an allowance for credit losses is recorded, limited by the amount that the estimated fair value is less than the amortized cost basis, with a corresponding charge to net investment gains (losses). Any unrealized losses that have not been recorded through an allowance for credit losses are recognized in OCI. Once a security specific allowance for credit losses is established, the present value of cash flows expected to be collected from the security continues to be reassessed. Any changes in the security specific allowance for credit losses are recorded as a provision for (or reversal of) credit loss expense in net investment gains (losses). Fixed maturity securities are also evaluated to determine whether any amounts have become uncollectible. When all, or a portion, of a security is deemed uncollectible, the uncollectible portion is written-off with an adjustment to amortized cost and a corresponding reduction to the allowance for credit losses. The allowance for credit losses is estimated using relevant available information, from internal and external sources, relating to past events, current conditions, and a reasonable and supportable forecast. Historical credit loss experience provides the basis for estimating expected credit losses. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics and environmental conditions. A reasonable and supportable forecast period of two-years is used with an input reversion period of one-year. Mortgage loans are evaluated in each of the three portfolio segments to determine the allowance for credit losses. The loan-level loss rates are determined using individual loan terms and characteristics, risk pools/internal ratings, national economic forecasts, prepayment speeds, and estimated default and loss severity. The resulting loss rates are applied to the mortgage loan’s amortized cost to generate an allowance for credit losses. In certain situations, the allowance for credit losses is measured as the difference between the loan’s amortized cost and liquidation value of the collateral. These situations include collateral dependent loans, expected troubled debt restructurings (“TDR”), foreclosure probable loans, and loans with dissimilar risk characteristics. Mortgage loans are also evaluated to determine if they qualify as PCD assets. To determine if the credit deterioration experienced since origination is more than insignificant, the extent of credit deterioration is evaluated. All re-performing/modified loan (“RPL”) pools purchased after December 31, 2019 are determined to have been acquired with evidence of more than insignificant credit deterioration since origination and are classified as PCD assets. RPLs are pools of residential mortgage loans acquired at a discount or premium which have both credit and non-credit components. For PCD mortgage loans, the allowance for credit losses is determined using a similar methodology described above, except the loss-rate is determined at the pool level instead of the individual loan level. The initial allowance for credit losses, determined on a collective basis, is then allocated to the individual loans. The initial amortized cost of the loan is grossed-up to reflect the sum of the loan’s purchase price and allowance for credit losses. The difference between the grossed-up amortized cost basis and the par value of the loan is a noncredit discount or premium, which is accreted or amortized into net investment income over the remaining life of the loan. Any subsequent PCD mortgage loan allowance for credit losses is evaluated in a manner similar to the process described above for each of the three portfolio segments. |
Derivatives, Policy [Policy Text Block] | Types of Derivative Instruments and Derivative Strategies The Company maintains an overall risk management strategy that incorporates the use of derivative instruments to minimize its exposure to various market risks. Commonly used derivative instruments include, but are not necessarily limited to: • Interest rate derivatives: swaps, caps, swaptions and forwards; • Foreign currency exchange rate derivatives: forwards and swaps; • Equity market derivatives: options, total return swaps and variance swaps; and • Credit derivatives: single and index reference credit default swaps and swaptions. |
Income Tax, Policy [Policy Text Block] | The effects of income taxes on amounts recorded to AOCI are also recognized in AOCI. These income tax effects are released from AOCI when the related activity is reclassified into results from operations. |
New Accounting Pronouncements, Policy [Policy Text Block] | Adoption of New Accounting Pronouncements Changes to GAAP are established by the Financial Accounting Standards Board (“FASB”) in the form of accounting standards updates (“ASU”) to the FASB Accounting Standards Codification. The Company considers the applicability and impact of all ASUs. There were no significant ASUs adopted during the period ended March 31, 2022. Future Adoption of New Accounting Pronouncements In August 2018, the FASB issued new guidance on long-duration contracts (ASU 2018-12, Financial Services-Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts). This new guidance is effective for fiscal years beginning after January 1, 2023. The amendments to Topic 944 will result in significant changes to the measurement, presentation and disclosure requirements for long-duration insurance contracts. A summary of the most significant changes is provided below: (1) Guaranteed benefits associated with variable annuity and certain fixed annuity contracts will be classified and presented separately on the consolidated balance sheets as market risk benefits (“MRB”). MRBs will be measured at fair value through net income and reported separately on the consolidated statements of operations, except for instrument-specific credit risk changes, which will be recognized in other comprehensive income (loss) (“OCI”). (2) Cash flow assumptions used to measure the liability for future policy benefits on traditional long-duration contracts (including term and non-participating whole life insurance and immediate annuities) will be updated on an annual basis using a retrospective method. The resulting remeasurement gain or loss will be reported separately on the consolidated statements of operations along with the remeasurement gain or loss on universal life-type contract liabilities. (3) The discount rate assumption used to measure the liability for traditional long-duration contracts will be based on an upper-medium grade fixed income yield, updated quarterly, with changes recognized in OCI. (4) Deferred policy acquisition costs (“DAC”) for all insurance products are required to be amortized on a constant-level basis over the expected term of the contracts, using amortization methods that are not a function of revenue or profit emergence. Changes in assumptions used to amortize DAC will be recognized as a revision to future amortization amounts. (5) There will be a significant increase in required disclosures, including disaggregated rollforwards of insurance contract assets and liabilities supplemented by qualitative and quantitative information regarding the cash flows, assumptions, methods and judgements used to measure those balances. The amendments to Topic 944 will be applied to the earliest period presented in the financial statements, making the transition date January 1, 2021. The MRB guidance is required to be applied on a retrospective basis, while the guidance for insurance liability assumption updates and DAC amortization will be applied to existing carrying amounts on the transition date. The new guidance will have a significant impact on the Company’s financial statements upon adoption, and will change the pattern and market sensitivity of the Company’s earnings after the transition date. The most significant impact will be the requirement that all variable annuity guarantees be considered MRBs and measured at fair value, because a significant amount of variable annuity guarantees are classified as insurance liabilities under current guidance. The impacts to the financial statements at adoption are highly dependent on market conditions, especially interest rates. The Company is, therefore, unable to currently estimate the ultimate impact of the new guidance on the financial statements; however, at prevailing interest rate levels at the end of 2021, the Company expects the new guidance, upon adoption, would likely result in a material decrease in stockholder’s equity. |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment Reporting Information, by Segment | Operating results by segment, as well as Corporate & Other, were as follows: Three Months Ended March 31, 2022 Annuities Life Run-off Corporate Total (In millions) Pre-tax adjusted earnings $ 374 $ 39 $ 19 $ (39) $ 393 Provision for income tax expense (benefit) 71 8 4 (5) 78 Post-tax adjusted earnings 303 31 15 (34) 315 Less: Net income (loss) attributable to noncontrolling interests — — — — — Adjusted earnings $ 303 $ 31 $ 15 $ (34) 315 Adjustments for: Net investment gains (losses) (67) Net derivative gains (losses) 555 Other adjustments to net income (loss) (38) Provision for income tax (expense) benefit (94) Net income (loss) attributable to Brighthouse Life Insurance Company $ 671 Interest revenue $ 553 $ 140 $ 401 $ 47 Interest expense $ — $ — $ — $ 17 Three Months Ended March 31, 2021 Annuities Life Run-off Corporate Total (In millions) Pre-tax adjusted earnings $ 396 $ 141 $ 85 $ (66) $ 556 Provision for income tax expense (benefit) 75 29 9 (12) 101 Post-tax adjusted earnings 321 112 76 (54) 455 Less: Net income (loss) attributable to noncontrolling interests — — — — — Adjusted earnings $ 321 $ 112 $ 76 $ (54) 455 Adjustments for: Net investment gains (losses) 12 Net derivative gains (losses) (1,387) Other adjustments to net income (loss) 225 Provision for income tax (expense) benefit 242 Net income (loss) attributable to Brighthouse Life Insurance Company $ (453) Interest revenue $ 547 $ 150 $ 463 $ 14 Interest expense $ — $ — $ — $ 17 Total assets by segment, as well as Corporate & Other, were as follows at: March 31, 2022 December 31, 2021 (In millions) Annuities $ 163,983 $ 174,489 Life 17,600 18,190 Run-off 34,059 37,069 Corporate & Other 17,864 17,507 Total $ 233,506 $ 247,255 |
Reconciliation of Revenue from Segments to Consolidated | Total revenues by segment, as well as Corporate & Other, were as follows: Three Months Ended 2022 2021 (In millions) Annuities $ 1,135 $ 1,147 Life 276 324 Run-off 562 628 Corporate & Other 66 35 Adjustments 540 (1,320) Total $ 2,579 $ 814 |
Insurance (Tables)
Insurance (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Insurance [Abstract] | |
Guarantees related to Annuity, Universal and Variable Life Contracts | Information regarding the Company’s guarantee exposure was as follows at: March 31, 2022 December 31, 2021 In the At In the At (Dollars in millions) Annuity Contracts (1), (2) Variable Annuity Guarantees Total account value (3) $ 96,960 $ 51,769 $ 105,784 $ 56,966 Separate account value $ 92,277 $ 50,709 $ 101,108 $ 55,910 Net amount at risk $ 9,189 (4) $ 5,468 (5) $ 6,315 (4) $ 4,992 (5) Average attained age of contract holders 72 years 71 years 71 years 71 years March 31, 2022 December 31, 2021 Secondary Guarantees (Dollars in millions) Universal Life Contracts Total account value (3) $ 5,447 $ 5,518 Net amount at risk (6) $ 66,682 $ 67,248 Average attained age of policyholders 68 years 68 years Variable Life Contracts Total account value (3) $ 1,348 $ 1,448 Net amount at risk (6) $ 10,496 $ 10,508 Average attained age of policyholders 47 years 47 years _______________ (1) The Company’s annuity contracts with guarantees may offer more than one type of guarantee in each contract. Therefore, the amounts listed above may not be mutually exclusive. (2) Includes direct business, but excludes offsets from hedging or reinsurance, if any. Therefore, the net amount at risk presented reflects the economic exposures of living and death benefit guarantees associated with variable annuities, but not necessarily their impact on the Company. See Note 5 of the Notes to the Consolidated Financial Statements included in the 2021 Annual Report for a discussion of guaranteed minimum benefits which have been reinsured. (3) Includes the contract holder’s investments in the general account and separate account, if applicable. (4) Defined as the death benefit less the total account value, as of the balance sheet date. It represents the amount of the claim that the Company would incur if death claims were filed on all contracts on the balance sheet date and includes any additional contractual claims associated with riders purchased to assist with covering income taxes payable upon death. (5) Defined as the amount (if any) that would be required to be added to the total account value to purchase a lifetime income stream, based on current annuity rates, equal to the minimum amount provided under the guaranteed benefit. This amount represents the Company’s potential economic exposure to such guarantees in the event all contract holders were to annuitize on the balance sheet date, even though the contracts contain terms that allow annuitization of the guaranteed amount only after the 10th anniversary of the contract, which not all contract holders have achieved. (6) Defined as the guarantee amount less the account value, as of the balance sheet date. It represents the amount of the claim that the Company would incur if death claims were filed on all contracts on the balance sheet date. |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Fixed Maturity Securities by Sector | Fixed maturity securities by sector were as follows at: March 31, 2022 December 31, 2021 Amortized Allowance Gross Unrealized Estimated Amortized Allowance Gross Unrealized Estimated Gains Losses Gains Losses (In millions) U.S. corporate $ 35,220 $ 2 $ 1,434 $ 1,201 $ 35,451 $ 34,773 $ 2 $ 3,890 $ 187 $ 38,474 Foreign corporate 11,172 7 276 494 10,947 10,813 7 902 103 11,605 RMBS 8,782 — 185 275 8,692 8,838 — 433 51 9,220 U.S. government and agency 8,344 — 1,342 223 9,463 7,188 — 2,040 60 9,168 CMBS 7,023 2 46 173 6,894 6,890 2 329 24 7,193 State and political subdivision 3,885 — 456 101 4,240 3,937 — 829 6 4,760 ABS 4,594 — 8 98 4,504 4,255 — 34 14 4,275 Foreign government 1,227 — 116 32 1,311 1,593 — 244 5 1,832 Total fixed maturity securities $ 80,247 $ 11 $ 3,863 $ 2,597 $ 81,502 $ 78,287 $ 11 $ 8,701 $ 450 $ 86,527 |
Maturities of Fixed Maturity Securities | The amortized cost and estimated fair value of fixed maturity securities, by contractual maturity date, were as follows at March 31, 2022: Due in One Due After One Due After Due After Ten Structured Total Fixed (In millions) Amortized cost $ 916 $ 11,564 $ 16,844 $ 30,524 $ 20,399 $ 80,247 Estimated fair value $ 921 $ 11,478 $ 16,493 $ 32,520 $ 20,090 $ 81,502 _______________ (1) Structured securities include residential mortgage-backed securities (“RMBS”), commercial mortgage-backed securities (“CMBS”) and asset-backed securities (“ABS”) (collectively, “Structured Securities”). |
Continuous Gross Unrealized Losses for Fixed Maturity Securities by Sector | The estimated fair value and gross unrealized losses of fixed maturity securities in an unrealized loss position, by sector and by length of time that the securities have been in a continuous unrealized loss position, were as follows at: March 31, 2022 December 31, 2021 Less than 12 Months 12 Months or Greater Less than 12 Months 12 Months or Greater Estimated Gross Estimated Gross Estimated Gross Estimated Gross (Dollars in millions) U.S. corporate $ 14,235 $ 884 $ 1,971 $ 317 $ 5,051 $ 111 $ 887 $ 76 Foreign corporate 5,532 387 555 107 2,016 60 305 43 RMBS 4,934 236 410 39 3,481 50 32 1 U.S. government and agency 2,845 98 574 125 1,712 40 222 20 CMBS 4,077 129 391 44 1,390 21 95 3 State and political subdivision 997 97 24 4 347 6 6 — ABS 3,732 94 148 4 2,454 13 93 1 Foreign government 452 32 — — 278 4 18 1 Total fixed maturity securities $ 36,804 $ 1,957 $ 4,073 $ 640 $ 16,729 $ 305 $ 1,658 $ 145 Total number of securities in an unrealized loss position 5,202 710 2,423 368 |
Mortgage Loans by Portfolio Segment | Mortgage loans are summarized as follows at: March 31, 2022 December 31, 2021 Carrying % of Carrying % of (Dollars in millions) Commercial $ 13,092 61.5 % $ 12,159 61.4 % Agricultural 4,104 19.3 4,128 20.9 Residential 4,226 19.8 3,623 18.3 Total mortgage loans (1) 21,422 100.6 19,910 100.6 Allowance for credit losses (127) (0.6) (123) (0.6) Total mortgage loans, net $ 21,295 100.0 % $ 19,787 100.0 % _______________ (1) Purchases of mortgage loans from third parties were $840 million and $178 million for the three months ended March 31, 2022 and 2021, respectively, and were primarily comprised of residential mortgage loans. |
Rollforward of the Allowance for Credit Losses for Mortgage Loans by Portfolio Segment | The changes in the allowance for credit losses by portfolio segment were as follows: Commercial Agricultural Residential Total (In millions) Three Months Ended March 31, 2022 Balance, beginning of period $ 67 $ 12 $ 44 $ 123 Current period provision 2 3 (1) 4 Balance, end of period $ 69 $ 15 $ 43 $ 127 Three Months Ended March 31, 2021 Balance, beginning of period $ 44 $ 15 $ 35 $ 94 Current period provision 1 (2) (3) (4) Balance, end of period $ 45 $ 13 $ 32 $ 90 |
Credit Quality of Mortgage Loans by Portfolio Segment | The amortized cost of mortgage loans by year of origination and credit quality indicator was as follows at: 2022 2021 2020 2019 2018 Prior Total (In millions) March 31, 2022 Commercial mortgage loans Loan-to-value ratios: Less than 65% $ 637 $ 2,772 $ 436 $ 1,538 $ 986 $ 3,835 $ 10,204 65% to 75% 346 631 92 383 406 579 2,437 76% to 80% — — — 55 29 68 152 Greater than 80% — — — — 29 270 299 Total commercial mortgage loans 983 3,403 528 1,976 1,450 4,752 13,092 Agricultural mortgage loans Loan-to-value ratios: Less than 65% 90 1,149 426 503 669 904 3,741 65% to 75% 49 114 77 61 20 42 363 Total agricultural mortgage loans 139 1,263 503 564 689 946 4,104 Residential mortgage loans Performing 132 1,773 187 243 202 1,626 4,163 Nonperforming — 3 — 2 2 56 63 Total residential mortgage loans 132 1,776 187 245 204 1,682 4,226 Total $ 1,254 $ 6,442 $ 1,218 $ 2,785 $ 2,343 $ 7,380 $ 21,422 2021 2020 2019 2018 2017 Prior Total (In millions) December 31, 2021 Commercial mortgage loans Loan-to-value ratios: Less than 65% $ 2,771 $ 437 $ 1,539 $ 986 $ 553 $ 3,300 $ 9,586 65% to 75% 633 92 383 406 127 458 2,099 76% to 80% — — 55 29 59 31 174 Greater than 80% — — — 30 — 270 300 Total commercial mortgage loans 3,404 529 1,977 1,451 739 4,059 12,159 Agricultural mortgage loans Loan-to-value ratios: Less than 65% 1,150 539 510 674 284 608 3,765 65% to 75% 114 77 61 26 33 52 363 Total agricultural mortgage loans 1,264 616 571 700 317 660 4,128 Residential mortgage loans Performing 1,124 202 270 230 132 1,606 3,564 Nonperforming 1 — 3 3 1 51 59 Total residential mortgage loans 1,125 202 273 233 133 1,657 3,623 Total $ 5,793 $ 1,347 $ 2,821 $ 2,384 $ 1,189 $ 6,376 $ 19,910 The amortized cost of commercial mortgage loans by debt-service coverage ratio was as follows at: March 31, 2022 December 31, 2021 Amortized Cost % of Amortized Cost % of (Dollars in millions) Debt-service coverage ratios: Greater than 1.20x $ 10,986 83.9 % $ 10,263 84.4 % 1.00x - 1.20x 569 4.4 595 4.9 Less than 1.00x 1,537 11.7 1,301 10.7 Total $ 13,092 100.0 % $ 12,159 100.0 % |
Past Due Mortgage Loans by Portfolio Segment | The aging of the amortized cost of past due mortgage loans by portfolio segment was as follows at: March 31, 2022 December 31, 2021 Commercial Agricultural Residential Total Commercial Agricultural Residential Total (In millions) Current $ 13,092 $ 4,035 $ 4,147 $ 21,274 $ 12,159 $ 4,128 $ 3,550 $ 19,837 30-59 days past due — 51 16 67 — — 14 14 60-89 days past due — 16 17 33 — — 14 14 90-179 days past due — 2 31 33 — — 29 29 180+ days past due — — 15 15 — — 16 16 Total $ 13,092 $ 4,104 $ 4,226 $ 21,422 $ 12,159 $ 4,128 $ 3,623 $ 19,910 |
Mortgage Loans in Nonaccrual Status by Portfolio Segment | The amortized cost of mortgage loans in a nonaccrual status by portfolio segment were as follows at: Commercial Agricultural Residential (1) Total (In millions) March 31, 2022 $ — $ — $ 63 $ 63 December 31, 2021 $ — $ — $ 59 $ 59 _______________ (1) All residential mortgage loans in nonaccrual status had an allowance for credit losses at both March 31, 2022 and December 31, 2021. |
Net Unrealized Investment Gains (Losses) | The components of net unrealized investment gains (losses), included in AOCI, were as follows at: March 31, 2022 December 31, 2021 (In millions) Fixed maturity securities $ 1,266 $ 8,251 Derivatives 338 320 Other (10) (27) Subtotal 1,594 8,544 Amounts allocated from: Future policy benefits (1,102) (3,210) DAC, VOBA and DSI (81) (387) Subtotal (1,183) (3,597) Deferred income tax benefit (expense) (86) (1,039) Net unrealized investment gains (losses) $ 325 $ 3,908 The changes in net unrealized investment gains (losses) were as follows: Three Months Ended March 31, 2022 (In millions) Balance at December 31, 2021 $ 3,908 Unrealized investment gains (losses) during the period (6,950) Unrealized investment gains (losses) relating to: Future policy benefits 2,108 DAC, VOBA and DSI 306 Deferred income tax benefit (expense) 953 Balance at March 31, 2022 $ 325 Change in net unrealized investment gains (losses) $ (3,583) |
Securities Lending | Elements of the securities lending program are presented below at: March 31, 2022 December 31, 2021 (In millions) Securities on loan: (1) Amortized cost $ 4,491 $ 3,573 Estimated fair value $ 5,073 $ 4,539 Cash collateral received from counterparties (2) $ 5,168 $ 4,611 Securities collateral received from counterparties (3) $ — $ 2 Reinvestment portfolio — estimated fair value $ 5,202 $ 4,730 _______________ (1) Included within fixed maturity securities. (2) Included within payables for collateral under securities loaned and other transactions. (3) Securities collateral received from counterparties may not be sold or re-pledged, unless the counterparty is in default, and is not reported on the interim condensed consolidated financial statements. The cash collateral liability by loaned security type and remaining tenor of the agreements were as follows at: March 31, 2022 December 31, 2021 Open (1) 1 Month or Less 1 to 6 Months Total Open (1) 1 Month or Less 1 to 6 Months Total (In millions) U.S. government and agency $ 1,159 $ 1,635 $ 1,751 $ 4,545 $ 1,094 $ 2,125 $ 1,391 $ 4,610 U.S. corporate 1 479 — 480 1 — — 1 Foreign corporate — 143 — 143 — — — — Total $ 1,160 $ 2,257 $ 1,751 $ 5,168 $ 1,095 $ 2,125 $ 1,391 $ 4,611 _______________ (1) The related loaned security could be returned to the Company on the next business day which would require the Company to immediately return the cash collateral. |
Invested Assets on Deposit, Held in Trust and Pledged as Collateral | Invested assets on deposit, held in trust and pledged as collateral at estimated fair value were as follows at: March 31, 2022 December 31, 2021 (In millions) Invested assets on deposit (regulatory deposits) (1) $ 9,113 $ 9,996 Invested assets held in trust (reinsurance agreements) (2) 5,693 6,023 Invested assets pledged as collateral (3) 6,030 5,116 Total invested assets on deposit, held in trust and pledged as collateral $ 20,836 $ 21,135 _______________ (1) The Company has assets, primarily fixed maturity securities, on deposit with governmental authorities relating to certain policyholder liabilities, of which $41 million and $25 million of the assets on deposit represents restricted cash and cash equivalents at March 31, 2022 and December 31, 2021, respectively. (2) The Company has assets, primarily fixed maturity securities, held in trust relating to certain reinsurance transactions, of which $101 million and $118 million of the assets held in trust balance represents restricted cash and cash equivalents at March 31, 2022 and December 31, 2021, respectively. (3) The Company has pledged invested assets in connection with various agreements and transactions, including funding agreements (see Note 3 of the Notes to the Consolidated Financial Statements included in the 2021 Annual Report) and derivative transactions (see Note 5). |
Variable Interest Entities | The carrying amount and maximum exposure to loss related to the VIEs for which the Company has concluded that it holds a variable interest, but is not the primary beneficiary, were as follows at: March 31, 2022 December 31, 2021 Carrying Maximum Carrying Maximum (In millions) Fixed maturity securities $ 15,748 $ 15,912 $ 16,326 $ 15,659 Limited partnerships and LLCs 3,875 5,241 3,666 5,101 Total $ 19,623 $ 21,153 $ 19,992 $ 20,760 |
Components of Net Investment Income | The components of net investment income were as follows: Three Months Ended 2022 2021 (In millions) Investment income: Fixed maturity securities $ 709 $ 680 Equity securities — 1 Mortgage loans 202 163 Policy loans 9 10 Limited partnerships and LLCs (1) 241 338 Cash, cash equivalents and short-term investments 1 1 Other 14 10 Total investment income 1,176 1,203 Less: Investment expenses 41 34 Net investment income $ 1,135 $ 1,169 _______________ (1) Includes net investment income pertaining to other limited partnership interests of $212 million and $331 million for the three months ended March 31, 2022 and 2021, respectively. |
Components of Net Investment Gains (Losses) | The components of net investment gains (losses) were as follows: Three Months Ended 2022 2021 (In millions) Fixed maturity securities $ (41) $ 8 Equity securities (6) — Mortgage loans (4) 4 Limited partnerships and LLCs (16) — Total net investment gains (losses) $ (67) $ 12 |
Sales or Disposals of Fixed Maturity Securities | Proceeds from sales or disposals of fixed maturity securities and the components of fixed maturity securities net investment gains (losses) were as follows: Three Months Ended 2022 2021 (In millions) Proceeds $ 2,540 $ 1,218 Gross investment gains $ 47 $ 31 Gross investment losses (86) (17) Net investment gains (losses) $ (39) $ 14 |
Derivatives (Tables)
Derivatives (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position | The primary underlying risk exposure, gross notional amount and estimated fair value of derivatives held were as follows at: March 31, 2022 December 31, 2021 Primary Underlying Risk Exposure Gross Estimated Fair Value Gross Estimated Fair Value Assets Liabilities Assets Liabilities (In millions) Derivatives Designated as Hedging Instruments: Cash flow hedges: Interest rate forwards Interest rate $ 150 $ 6 $ — $ 180 $ 30 $ — Foreign currency swaps Foreign currency exchange rate 3,584 256 20 3,237 220 22 Total qualifying hedges 3,734 262 20 3,417 250 22 Derivatives Not Designated or Not Qualifying as Hedging Instruments: Interest rate swaps Interest rate 2,770 222 11 2,595 325 17 Interest rate caps Interest rate 5,100 91 17 5,100 29 4 Interest rate options Interest rate 8,380 50 9 8,050 83 — Interest rate forwards Interest rate 11,839 65 544 9,808 627 109 Foreign currency swaps Foreign currency exchange rate 993 94 22 956 94 21 Foreign currency forwards Foreign currency exchange rate 303 — 3 288 — 4 Credit default swaps — written Credit 1,793 29 2 1,724 39 1 Credit default swaptions Credit — — — 150 — — Equity index options Equity market 24,143 981 776 24,692 1,155 877 Equity variance swaps Equity market 281 9 1 281 9 1 Equity total return swaps Equity market 26,311 536 456 32,719 493 588 Hybrid options Equity market 900 — — 900 8 — Total non-designated or non-qualifying derivatives 82,813 2,077 1,841 87,263 2,862 1,622 Embedded derivatives: Ceded guaranteed minimum income benefits Other N/A 151 — N/A 186 — Direct index-linked annuities Other N/A — 5,309 N/A — 6,211 Direct guaranteed minimum benefits Other N/A — 1,285 N/A — 1,725 Assumed guaranteed minimum benefits Other N/A — 350 N/A — 427 Assumed index-linked annuities Other N/A — 367 N/A — 437 Total embedded derivatives N/A 151 7,311 N/A 186 8,800 Total $ 86,547 $ 2,490 $ 9,172 $ 90,680 $ 3,298 $ 10,444 |
Derivative Instruments, Gain (Loss) | The amount and location of gains (losses), including earned income, recognized for derivatives and gains (losses) pertaining to hedged items presented in net derivative gains (losses) were as follows: Net Derivative Gains (Losses) Recognized for Derivatives Net Derivative Gains (Losses) Recognized for Hedged Items Net Investment Income Amount of Gains (Losses) Deferred in AOCI (In millions) Three Months Ended March 31, 2022 Derivatives Designated as Hedging Instruments: Cash flow hedges: Interest rate $ 1 $ — $ 1 $ (21) Foreign currency exchange rate — — 10 41 Total cash flow hedges 1 — 11 20 Derivatives Not Designated or Not Qualifying as Hedging Instruments: Interest rate (1,131) — — — Foreign currency exchange rate 10 (5) — — Credit (7) — — — Equity market 308 — — — Embedded 1,379 — — — Total non-qualifying hedges 559 (5) — — Total $ 560 $ (5) $ 11 $ 20 Three Months Ended March 31, 2021 Derivatives Designated as Hedging Instruments: Cash flow hedges: Interest rate $ 1 $ — $ 1 $ (52) Foreign currency exchange rate 5 (3) 8 (15) Total cash flow hedges 6 (3) 9 (67) Derivatives Not Designated or Not Qualifying as Hedging Instruments: Interest rate (1,912) — — — Foreign currency exchange rate (7) 3 — — Credit 3 — — — Equity market (142) — — — Embedded 665 — — — Total non-qualifying hedges (1,393) 3 — — Total $ (1,387) $ — $ 9 $ (67) |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) | The amount and location of gains (losses), including earned income, recognized for derivatives and gains (losses) pertaining to hedged items presented in net derivative gains (losses) were as follows: Net Derivative Gains (Losses) Recognized for Derivatives Net Derivative Gains (Losses) Recognized for Hedged Items Net Investment Income Amount of Gains (Losses) Deferred in AOCI (In millions) Three Months Ended March 31, 2022 Derivatives Designated as Hedging Instruments: Cash flow hedges: Interest rate $ 1 $ — $ 1 $ (21) Foreign currency exchange rate — — 10 41 Total cash flow hedges 1 — 11 20 Derivatives Not Designated or Not Qualifying as Hedging Instruments: Interest rate (1,131) — — — Foreign currency exchange rate 10 (5) — — Credit (7) — — — Equity market 308 — — — Embedded 1,379 — — — Total non-qualifying hedges 559 (5) — — Total $ 560 $ (5) $ 11 $ 20 Three Months Ended March 31, 2021 Derivatives Designated as Hedging Instruments: Cash flow hedges: Interest rate $ 1 $ — $ 1 $ (52) Foreign currency exchange rate 5 (3) 8 (15) Total cash flow hedges 6 (3) 9 (67) Derivatives Not Designated or Not Qualifying as Hedging Instruments: Interest rate (1,912) — — — Foreign currency exchange rate (7) 3 — — Credit 3 — — — Equity market (142) — — — Embedded 665 — — — Total non-qualifying hedges (1,393) 3 — — Total $ (1,387) $ — $ 9 $ (67) |
Schedule of estimated fair value, maximum amount of future payments and weighted average years to maturity of written credit default swaps | The estimated fair value, maximum amount of future payments and weighted average years to maturity of written credit default swaps were as follows at: March 31, 2022 December 31, 2021 Rating Agency Designation of Referenced Credit Obligations (1) Estimated Maximum Weighted Estimated Maximum Weighted (Dollars in millions) Aaa/Aa/A $ 9 $ 599 2.2 $ 12 $ 589 2.4 Baa 16 1,166 5.3 27 1,131 5.0 Ba 3 24 4.7 — — 0.0 Caa and Lower (1) 4 3.7 (1) 4 4.0 Total $ 27 $ 1,793 4.3 $ 38 $ 1,724 4.1 _______________ (1) The Company has written credit protection on both single name and index references. The rating agency designations are based on availability and the midpoint of the applicable ratings among Moody’s, S&P and Fitch. If no rating is available from a rating agency, then an internally developed rating is used. (2) The weighted average years to maturity of the credit default swaps is calculated based on weighted average gross notional amounts. |
Estimated Fair Value of Derivative Assets after Master Netting Agreements and Cash Collateral | The estimated fair values of net derivative assets and net derivative liabilities after the application of master netting agreements and collateral were as follows at: Gross Amounts Not Offset on the Consolidated Balance Sheets Gross Amount Recognized Financial Instruments (1) Collateral Received/Pledged (2) Net Amount Securities Collateral Received/Pledged (3) Net Amount After Securities Collateral (In millions) March 31, 2022 Derivative assets $ 2,363 $ (1,321) $ (837) $ 205 $ (188) $ 17 Derivative liabilities $ 1,854 $ (1,321) $ — $ 533 $ (533) $ — December 31, 2021 Derivative assets $ 3,113 $ (1,155) $ (1,480) $ 478 $ (413) $ 65 Derivative liabilities $ 1,632 $ (1,155) $ — $ 477 $ (477) $ — _______________ (1) Represents amounts subject to an enforceable master netting agreement or similar agreement. (2) The amount of cash collateral offset in the table above is limited to the net estimated fair value of derivatives after application of netting agreement. (3) Securities collateral received from counterparties is not reported on the consolidated balance sheets and may not be sold or re-pledged unless the counterparty is in default. Amounts do not include excess of collateral pledged or received. |
Estimated Fair Value of Derivative Liabilities after Master Netting Agreements and Cash Collateral | The estimated fair values of net derivative assets and net derivative liabilities after the application of master netting agreements and collateral were as follows at: Gross Amounts Not Offset on the Consolidated Balance Sheets Gross Amount Recognized Financial Instruments (1) Collateral Received/Pledged (2) Net Amount Securities Collateral Received/Pledged (3) Net Amount After Securities Collateral (In millions) March 31, 2022 Derivative assets $ 2,363 $ (1,321) $ (837) $ 205 $ (188) $ 17 Derivative liabilities $ 1,854 $ (1,321) $ — $ 533 $ (533) $ — December 31, 2021 Derivative assets $ 3,113 $ (1,155) $ (1,480) $ 478 $ (413) $ 65 Derivative liabilities $ 1,632 $ (1,155) $ — $ 477 $ (477) $ — _______________ (1) Represents amounts subject to an enforceable master netting agreement or similar agreement. (2) The amount of cash collateral offset in the table above is limited to the net estimated fair value of derivatives after application of netting agreement. (3) Securities collateral received from counterparties is not reported on the consolidated balance sheets and may not be sold or re-pledged unless the counterparty is in default. Amounts do not include excess of collateral pledged or received. |
Schedule of Derivative Instruments | The aggregate estimated fair values of derivatives in a net liability position containing such credit-contingent provisions and the aggregate estimated fair value of assets posted as collateral for such instruments were as follows at: March 31, 2022 December 31, 2021 (In millions) Estimated fair value of derivatives in a net liability position (1) $ 533 $ 477 Estimated Fair Value of Collateral Provided (2): Fixed maturity securities $ 1,465 $ 839 _______________ (1) After taking into consideration the existence of netting agreements. (2) Substantially all of the Company’s collateral arrangements provide for daily posting of collateral for the full value of the derivative contract. As a result, if the credit-contingent provisions of derivative contracts in a net liability position were triggered, minimal additional assets would be required to be posted as collateral or needed to settle the instruments immediately. |
Fair Value (Tables)
Fair Value (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Recurring Fair Value Measurements | The assets and liabilities measured at estimated fair value on a recurring basis and their corresponding placement in the fair value hierarchy are presented in the tables below. Investments that do not have a readily determinable fair value and are measured at net asset value (or equivalent) as a practical expedient to estimated fair value are excluded from the fair value hierarchy. March 31, 2022 Fair Value Hierarchy Total Estimated Level 1 Level 2 Level 3 (In millions) Assets Fixed maturity securities: U.S. corporate $ — $ 34,416 $ 1,035 $ 35,451 Foreign corporate — 10,364 583 10,947 RMBS — 8,675 17 8,692 U.S. government and agency 4,093 5,370 — 9,463 CMBS — 6,888 6 6,894 State and political subdivision — 4,240 — 4,240 ABS — 4,333 171 4,504 Foreign government — 1,288 23 1,311 Total fixed maturity securities 4,093 75,574 1,835 81,502 Equity securities 20 42 13 75 Short-term investments 90 21 — 111 Derivative assets: (1) Interest rate — 434 — 434 Foreign currency exchange rate — 335 15 350 Credit — 20 9 29 Equity market — 1,517 9 1,526 Total derivative assets — 2,306 33 2,339 Embedded derivatives within asset host contracts (2) — — 151 151 Separate account assets 44 96,951 — 96,995 Total assets $ 4,247 $ 174,894 $ 2,032 $ 181,173 Liabilities Derivative liabilities: (1) Interest rate $ — $ 581 $ — $ 581 Foreign currency exchange rate — 45 — 45 Credit — — 2 2 Equity market — 1,232 1 1,233 Total derivative liabilities — 1,858 3 1,861 Embedded derivatives within liability host contracts (2) — — 7,311 7,311 Total liabilities $ — $ 1,858 $ 7,314 $ 9,172 December 31, 2021 Fair Value Hierarchy Total Estimated Level 1 Level 2 Level 3 (In millions) Assets Fixed maturity securities: U.S. corporate $ — $ 37,568 $ 906 $ 38,474 Foreign corporate — 11,112 493 11,605 RMBS — 9,209 11 9,220 U.S. government and agency 3,159 6,009 — 9,168 CMBS — 7,149 44 7,193 State and political subdivision — 4,760 — 4,760 ABS — 4,110 165 4,275 Foreign government — 1,806 26 1,832 Total fixed maturity securities 3,159 81,723 1,645 86,527 Equity securities 21 61 13 95 Short-term investments 640 20 2 662 Derivative assets: (1) Interest rate — 1,094 — 1,094 Foreign currency exchange rate — 304 10 314 Credit — 27 12 39 Equity market — 1,649 16 1,665 Total derivative assets — 3,074 38 3,112 Embedded derivatives within asset host contracts (2) — — 186 186 Separate account assets 41 106,184 — 106,225 Total assets $ 3,861 $ 191,062 $ 1,884 $ 196,807 Liabilities Derivative liabilities: (1) Interest rate $ — $ 130 $ — $ 130 Foreign currency exchange rate — 47 — 47 Credit — — 1 1 Equity market — 1,465 1 1,466 Total derivative liabilities — 1,642 2 1,644 Embedded derivatives within liability host contracts (2) — — 8,800 8,800 Total liabilities $ — $ 1,642 $ 8,802 $ 10,444 _______________ (1) Derivative assets are presented within other invested assets on the consolidated balance sheets and derivative liabilities are presented within other liabilities on the consolidated balance sheets. The amounts are presented gross in the tables above to reflect the presentation on the consolidated balance sheets. |
Fair Value Measurement Inputs and Valuation Techniques | Certain quantitative information about the significant unobservable inputs used in the fair value measurement, and the sensitivity of the estimated fair value to changes in those inputs, for the more significant asset and liability classes measured at fair value on a recurring basis using significant unobservable inputs (Level 3) were as follows at: March 31, 2022 December 31, 2021 Impact of Valuation Significant Range Range Embedded derivatives Direct, assumed and ceded guaranteed minimum benefits • Option pricing • Mortality rates 0.03% - 12.62% 0.03% - 12.62% Decrease (1) • Lapse rates 0.30% - 14.50% 0.30% - 14.50% Decrease (2) • Utilization rates 0.00% - 25.00% 0.00% - 25.00% Increase (3) • Withdrawal rates 0.25% - 10.00% 0.25% - 10.00% (4) • Long-term equity volatilities 16.44% - 22.16% 16.44% - 22.16% Increase (5) • Nonperformance risk spread 0.10% - 1.74% (0.38)% - 1.49% Decrease (6) _______________ (1) Mortality rates vary by age and by demographic characteristics such as gender. The range shown reflects the mortality rate for policyholders between 35 and 90 years old, which represents the majority of the business with living benefits. Mortality rate assumptions are set based on company experience and include an assumption for mortality improvement. (2) The range shown reflects base lapse rates for major product categories for duration 1-20, which represents majority of business with living benefit riders. Base lapse rates are adjusted at the contract level based on a comparison of the actuarially calculated guaranteed values and the current policyholder account value, as well as other factors, such as the applicability of any surrender charges. 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. Lapse rates are also generally assumed to be lower in periods when a surrender charge applies. (3) The utilization rate assumption estimates the percentage of contract holders with a GMIB or lifetime withdrawal benefit who will elect to utilize the benefit upon becoming eligible in a given year. The range shown represents the floor and cap of the GMIB dynamic election rates across varying levels of in-the-money. For lifetime withdrawal guarantee riders, the assumption is that everyone will begin withdrawals once account value reaches zero which is equivalent to a 100% utilization rate. Utilization rates may vary by the type of guarantee, the amount by which the guaranteed amount is greater than the account value, the contract’s withdrawal history and by the age of the policyholder. (4) The withdrawal rate represents the percentage of account balance that any given policyholder will elect to withdraw from the contract each year. The withdrawal rate assumption varies by age and duration of the contract, and also by other factors such as benefit type. For any given contract, withdrawal rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. For GMWBs, any increase (decrease) in withdrawal rates results in an increase (decrease) in the estimated fair value of the guarantees. For GMABs and GMIBs, any increase (decrease) in withdrawal rates results in a decrease (increase) in the estimated fair value. (5) Long-term equity volatilities represent equity volatility beyond the period for which observable equity volatilities are available. For any given contract, long-term equity volatility rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. (6) Nonperformance risk spread varies by duration. For any given contract, multiple nonperformance risk spreads will apply, depending on the duration of the cash flow being discounted for purposes of valuing the embedded derivative. |
Fair Value, Measured on Recurring Basis, Unobservable Input Reconciliation | The changes in assets and (liabilities) measured at estimated fair value on a recurring basis using significant unobservable inputs (Level 3) were summarized as follows: Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Fixed Maturity Securities Corporate (1) Structured Securities Foreign Equity Short-term Net Net Embedded Separate (In millions) Three Months Ended March 31, 2022 Balance, beginning of period $ 1,399 $ 220 $ 26 $ 13 $ 2 $ 36 $ (8,614) $ — Total realized/unrealized gains (losses) included in net income (loss) (5) (6) — — — — — (10) 1,379 — Total realized/unrealized gains (losses) included in AOCI (99) (5) (3) — — 4 — — Purchases (7) 422 87 — — — — — — Sales (7) (93) (2) — — (2) — — — Issuances (7) — — — — — — — — Settlements (7) — — — — — — 75 — Transfers into Level 3 (8) 86 1 — — — — — — Transfers out of Level 3 (8) (97) (107) — — — — — — Balance, end of period $ 1,618 $ 194 $ 23 $ 13 $ — $ 30 $ (7,160) $ — Three Months Ended March 31, 2021 Balance, beginning of period $ 684 $ 67 $ — $ 3 $ — $ 2 $ (7,301) $ 3 Total realized/unrealized gains (losses) included in net income (loss) (5) (6) (1) — — — — 8 665 — Total realized/unrealized gains (losses) included in AOCI (22) — — — — (1) — — Purchases (7) 118 80 — — — (2) — — Sales (7) (4) (3) — — — — — (1) Issuances (7) — — — — — — — — Settlements (7) — — — — — — (138) — Transfers into Level 3 (8) 4 3 — — — — — — Transfers out of Level 3 (8) (112) (21) — — — 1 — — Balance, end of period $ 667 $ 126 $ — $ 3 $ — $ 8 $ (6,774) $ 2 Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at March 31, 2022 (9) $ — $ — $ — $ — $ — $ (10) $ 1,517 $ — Changes in unrealized gains (losses) included in OCI for the instruments still held at March 31, 2022 (9) $ (98) $ (5) $ (3) $ — $ — $ 4 $ — $ — Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at March 31, 2021 (9) $ (1) $ — $ — $ — $ — $ 8 $ 663 $ — Changes in unrealized gains (losses) included in OCI for the instruments still held at March 31, 2021 (9) $ (22) $ — $ — $ — $ — $ (1) $ — $ — _______________ (1) Comprised of U.S. and foreign corporate securities. (2) Freestanding derivative assets and liabilities are presented net for purposes of the rollforward. (3) Embedded derivative assets and liabilities are presented net for purposes of the rollforward. (4) Investment performance related to separate account assets is fully offset by corresponding amounts credited to contract holders within separate account liabilities. Therefore, such changes in estimated fair value are not recorded in net income (loss). For the purpose of this disclosure, these changes are presented within net investment gains (losses). (5) Amortization of premium/accretion of discount is included within net investment income. Changes in the allowance for credit losses and direct write-offs are charged to net income (loss) on securities are included in net investment gains (losses). Lapses associated with net embedded derivatives are included in net derivative gains (losses). Substantially all realized/unrealized gains (losses) included in net income (loss) for net derivatives and net embedded derivatives are reported in net derivative gains (losses). (6) Interest and dividend accruals, as well as cash interest coupons and dividends received, are excluded from the rollforward. (7) Items purchased/issued and then sold/settled in the same period are excluded from the rollforward. Fees attributed to embedded derivatives are included in settlements. (8) Gains and losses, in net income (loss) and OCI, are calculated assuming transfers into and/or out of Level 3 occurred at the beginning of the period. Items transferred into and then out of Level 3 in the same period are excluded from the rollforward. (9) Changes in unrealized gains (losses) included in net income (loss) for fixed maturities are reported in either net investment income or net investment gains (losses). Substantially all changes in unrealized gains (losses) included in net income (loss) for net derivatives and net embedded derivatives are reported in net derivative gains (losses). |
Fair Value of Financial Instruments Carried at Other Than Fair Value | The carrying values and estimated fair values for such financial instruments, and their corresponding placement in the fair value hierarchy, are summarized as follows at: March 31, 2022 Fair Value Hierarchy Carrying Level 1 Level 2 Level 3 Total (In millions) Assets Mortgage loans $ 21,295 $ — $ — $ 21,083 $ 21,083 Policy loans $ 876 $ — $ 477 $ 506 $ 983 Other invested assets $ 104 $ — $ 89 $ 15 $ 104 Premiums, reinsurance and other receivables $ 3,080 $ — $ 31 $ 3,519 $ 3,550 Liabilities Policyholder account balances $ 24,881 $ — $ — $ 24,366 $ 24,366 Long-term debt $ 840 $ — $ 33 $ 903 $ 936 Other liabilities $ 1,089 $ — $ 269 $ 820 $ 1,089 Separate account liabilities $ 1,304 $ — $ 1,304 $ — $ 1,304 December 31, 2021 Fair Value Hierarchy Carrying Level 1 Level 2 Level 3 Total (In millions) Assets Mortgage loans $ 19,787 $ — $ — $ 20,591 $ 20,591 Policy loans $ 869 $ — $ 470 $ 568 $ 1,038 Other invested assets $ 85 $ — $ 70 $ 15 $ 85 Premiums, reinsurance and other receivables $ 3,075 $ — $ 20 $ 3,583 $ 3,603 Liabilities Policyholder account balances $ 23,507 $ — $ — $ 23,487 $ 23,487 Long-term debt $ 841 $ — $ 36 $ 1,087 $ 1,123 Other liabilities $ 886 $ — $ 60 $ 816 $ 876 Separate account liabilities $ 1,437 $ — $ 1,437 $ — $ 1,437 |
Equity (Tables)
Equity (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Information regarding changes in the balances of each component of AOCI was as follows: Three Months Ended March 31, 2022 Unrealized Unrealized Foreign Total (In millions) Balance at December 31, 2021 $ 3,675 $ 233 $ (7) $ 3,901 OCI before reclassifications (4,595) 20 (8) (4,583) Deferred income tax benefit (expense) (2) 965 (4) 1 962 AOCI before reclassifications, net of income tax 45 249 (14) 280 Amounts reclassified from AOCI 41 (2) — 39 Deferred income tax benefit (expense) (2) (9) 1 — (8) Amounts reclassified from AOCI, net of income tax 32 (1) — 31 Balance at March 31, 2022 $ 77 $ 248 $ (14) $ 311 Three Months Ended March 31, 2021 Unrealized Unrealized Foreign Total (In millions) Balance at December 31, 2020 $ 5,321 $ 108 $ (8) $ 5,421 OCI before reclassifications (2,737) (67) (8) (2,812) Deferred income tax benefit (expense) (2) 575 14 2 591 AOCI before reclassifications, net of income tax 3,159 55 (14) 3,200 Amounts reclassified from AOCI (12) (7) — (19) Deferred income tax benefit (expense) (2) 3 1 — 4 Amounts reclassified from AOCI, net of income tax (9) (6) — (15) Balance at March 31, 2021 $ 3,150 $ 49 $ (14) $ 3,185 _______________ (1) See Note 4 for information on offsets to investments related to future policy benefits, DAC, VOBA and DSI. (2) The effects of income taxes on amounts recorded to AOCI are also recognized in AOCI. These income tax effects are released from AOCI when the related activity is reclassified into results from operations. |
Reclassification out of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Information regarding amounts reclassified out of each component of AOCI was as follows: AOCI Components Amounts Reclassified from AOCI Consolidated Statements of Operations and Comprehensive Income (Loss) Locations Three Months Ended 2022 2021 (In millions) Net unrealized investment gains (losses): Net unrealized investment gains (losses) $ (39) $ 15 Net investment gains (losses) Net unrealized investment gains (losses) (2) (3) Net derivative gains (losses) Net unrealized investment gains (losses), before income tax (41) 12 Income tax (expense) benefit 9 (3) Net unrealized investment gains (losses), net of income tax (32) 9 Unrealized gains (losses) on derivatives - cash flow hedges: Interest rate swaps 1 1 Net derivative gains (losses) Interest rate swaps 1 1 Net investment income Foreign currency swaps — 5 Net derivative gains (losses) Gains (losses) on cash flow hedges, before income tax 2 7 Income tax (expense) benefit (1) (1) Gains (losses) on cash flow hedges, net of income tax 1 6 Total reclassifications, net of income tax $ (31) $ 15 |
Other Revenues and Other Expe_2
Other Revenues and Other Expenses (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Other Income and Expenses [Abstract] | |
Other Expenses | Information on other expenses was as follows: Three Months Ended 2022 2021 (In millions) Compensation $ 81 $ 85 Contracted services and other labor costs 50 53 Transition services agreements 26 30 Establishment costs 14 16 Premium and other taxes, licenses and fees 12 13 Volume related costs, excluding compensation, net of DAC capitalization 137 158 Interest expense on debt 17 17 Other 49 52 Total other expenses $ 386 $ 424 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Related Party Transactions [Abstract] | |
Effects of reinsurance | Information regarding the significant effects of assumed reinsurance with New England Life Insurance Company (“NELICO”), an affiliate, included on the interim condensed consolidated statements of operations and comprehensive income (loss) was as follows: Three Months Ended 2022 2021 (In millions) Premiums $ — $ 2 Universal life and investment-type product policy fees $ 1 $ 2 Other revenues $ — $ 1 Policyholder benefits and claims $ 7 $ 7 Other expenses $ (7) $ (4) Information regarding the significant effects of assumed reinsurance with NELICO included on the interim condensed consolidated balance sheets was as follows at: March 31, 2022 December 31, 2021 (In millions) Assets Premiums, reinsurance and other receivables (net of allowance for credit losses) $ 27 $ 26 Liabilities Future policy benefits $ 120 $ 119 Policyholder account balances $ 350 $ 427 Other policy-related balances $ 10 $ 9 Other liabilities $ 23 $ 26 |
Business, Basis of Presentati_3
Business, Basis of Presentation and Summary of Significant Accounting Policies (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2022segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of Reportable Segments | 3 |
Segment Information (Operating
Segment Information (Operating Results) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Segment Reporting Information [Line Items] | ||
Pre-tax adjusted earnings | $ 843 | $ (594) |
Provision for income tax expense (benefit) | 172 | (141) |
Post-tax adjusted earnings | 671 | (453) |
Less: Net income (loss) attributable to noncontrolling interests | 0 | 0 |
Net investment gains (losses) | (67) | 12 |
Net derivative gains (losses) | 555 | (1,387) |
Other adjustments to net income (loss) | 112 | 96 |
Net income (loss) attributable to Brighthouse Life Insurance Company | 671 | (453) |
Annuities | ||
Segment Reporting Information [Line Items] | ||
Interest revenue | 553 | 547 |
Interest expense | 0 | 0 |
Life | ||
Segment Reporting Information [Line Items] | ||
Interest revenue | 140 | 150 |
Interest expense | 0 | 0 |
Run-off | ||
Segment Reporting Information [Line Items] | ||
Interest revenue | 401 | 463 |
Interest expense | 0 | 0 |
Corporate & Other | ||
Segment Reporting Information [Line Items] | ||
Interest revenue | 47 | 14 |
Interest expense | 17 | 17 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Pre-tax adjusted earnings | 393 | 556 |
Provision for income tax expense (benefit) | 78 | 101 |
Post-tax adjusted earnings | 315 | 455 |
Less: Net income (loss) attributable to noncontrolling interests | 0 | 0 |
Adjusted earnings | 315 | 455 |
Operating Segments | Annuities | ||
Segment Reporting Information [Line Items] | ||
Pre-tax adjusted earnings | 374 | 396 |
Provision for income tax expense (benefit) | 71 | 75 |
Post-tax adjusted earnings | 303 | 321 |
Less: Net income (loss) attributable to noncontrolling interests | 0 | 0 |
Adjusted earnings | 303 | 321 |
Operating Segments | Life | ||
Segment Reporting Information [Line Items] | ||
Pre-tax adjusted earnings | 39 | 141 |
Provision for income tax expense (benefit) | 8 | 29 |
Post-tax adjusted earnings | 31 | 112 |
Less: Net income (loss) attributable to noncontrolling interests | 0 | 0 |
Adjusted earnings | 31 | 112 |
Operating Segments | Run-off | ||
Segment Reporting Information [Line Items] | ||
Pre-tax adjusted earnings | 19 | 85 |
Provision for income tax expense (benefit) | 4 | 9 |
Post-tax adjusted earnings | 15 | 76 |
Less: Net income (loss) attributable to noncontrolling interests | 0 | 0 |
Adjusted earnings | 15 | 76 |
Operating Segments | Corporate & Other | ||
Segment Reporting Information [Line Items] | ||
Pre-tax adjusted earnings | (39) | (66) |
Provision for income tax expense (benefit) | (5) | (12) |
Post-tax adjusted earnings | (34) | (54) |
Less: Net income (loss) attributable to noncontrolling interests | 0 | 0 |
Adjusted earnings | (34) | (54) |
Segment Reconciling Items | ||
Segment Reporting Information [Line Items] | ||
Provision for income tax expense (benefit) | (94) | 242 |
Net investment gains (losses) | (67) | 12 |
Net derivative gains (losses) | 555 | (1,387) |
Other adjustments to net income (loss) | $ (38) | $ 225 |
Segment Information (Reconcilia
Segment Information (Reconciliation of Operating Revenues to Total Revenues) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Segment Reporting Information [Line Items] | ||
Total revenues | $ 2,579 | $ 814 |
Annuities | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 1,135 | 1,147 |
Life | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 276 | 324 |
Run-off | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 562 | 628 |
Corporate & Other | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 66 | 35 |
Segment Reconciling Items | ||
Segment Reporting Information [Line Items] | ||
Total revenues | $ 540 | $ (1,320) |
Segment Information (Assets) (D
Segment Information (Assets) (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 233,506 | $ 247,255 |
Annuities | ||
Segment Reporting Information [Line Items] | ||
Total assets | 163,983 | 174,489 |
Life | ||
Segment Reporting Information [Line Items] | ||
Total assets | 17,600 | 18,190 |
Run-off | ||
Segment Reporting Information [Line Items] | ||
Total assets | 34,059 | 37,069 |
Corporate & Other | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ 17,864 | $ 17,507 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2022segment | |
Segment Reporting [Abstract] | |
Number of segments | 3 |
Insurance (Guarantees Related t
Insurance (Guarantees Related to Annuity Contracts) (Details) - Variable Annuity Guarantees - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Guaranteed Death Benefits | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Total account value (3) | $ 96,960 | $ 105,784 |
Separate account value | 92,277 | 101,108 |
Net amount at risk | $ 9,189 | $ 6,315 |
Average attained age of contract holders | 72 years | 71 years |
Guaranteed Annuitization Benefits | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Total account value (3) | $ 51,769 | $ 56,966 |
Separate account value | 50,709 | 55,910 |
Net amount at risk | $ 5,468 | $ 4,992 |
Average attained age of contract holders | 71 years | 71 years |
Insurance (Guarantees Related_2
Insurance (Guarantees Related to Universal and Variable Life Contracts) (Details) - Secondary Guarantees - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Universal Life Contracts | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Total account value (3) | $ 5,447 | $ 5,518 |
Net amount at risk | $ 66,682 | $ 67,248 |
Average attained age of policyholders | 68 years | 68 years |
Variable Life Contracts | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Total account value (3) | $ 1,348 | $ 1,448 |
Net amount at risk | $ 10,496 | $ 10,508 |
Average attained age of policyholders | 47 years | 47 years |
Investments (Fixed Maturity Sec
Investments (Fixed Maturity Securities by Sector) (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities, amortized cost | $ 80,247 | $ 78,287 |
Fixed maturity securities, allowance for credit losses | 11 | 11 |
Fixed maturity securities, gross unrealized gains | 3,863 | 8,701 |
Fixed maturity securities, gross unrealized losses | 2,597 | 450 |
Fixed maturity securities, estimated fair value | 81,502 | 86,527 |
U.S. corporate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities, amortized cost | 35,220 | 34,773 |
Fixed maturity securities, allowance for credit losses | 2 | 2 |
Fixed maturity securities, gross unrealized gains | 1,434 | 3,890 |
Fixed maturity securities, gross unrealized losses | 1,201 | 187 |
Fixed maturity securities, estimated fair value | 35,451 | 38,474 |
Foreign corporate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities, amortized cost | 11,172 | 10,813 |
Fixed maturity securities, allowance for credit losses | 7 | 7 |
Fixed maturity securities, gross unrealized gains | 276 | 902 |
Fixed maturity securities, gross unrealized losses | 494 | 103 |
Fixed maturity securities, estimated fair value | 10,947 | 11,605 |
RMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities, amortized cost | 8,782 | 8,838 |
Fixed maturity securities, allowance for credit losses | 0 | 0 |
Fixed maturity securities, gross unrealized gains | 185 | 433 |
Fixed maturity securities, gross unrealized losses | 275 | 51 |
Fixed maturity securities, estimated fair value | 8,692 | 9,220 |
U.S. government and agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities, amortized cost | 8,344 | 7,188 |
Fixed maturity securities, allowance for credit losses | 0 | 0 |
Fixed maturity securities, gross unrealized gains | 1,342 | 2,040 |
Fixed maturity securities, gross unrealized losses | 223 | 60 |
Fixed maturity securities, estimated fair value | 9,463 | 9,168 |
CMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities, amortized cost | 7,023 | 6,890 |
Fixed maturity securities, allowance for credit losses | 2 | 0 |
Fixed maturity securities, gross unrealized gains | 46 | 329 |
Fixed maturity securities, gross unrealized losses | 173 | 24 |
Fixed maturity securities, estimated fair value | 6,894 | 7,193 |
State and political subdivision | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities, amortized cost | 3,885 | 3,937 |
Fixed maturity securities, allowance for credit losses | 0 | 0 |
Fixed maturity securities, gross unrealized gains | 456 | 829 |
Fixed maturity securities, gross unrealized losses | 101 | 6 |
Fixed maturity securities, estimated fair value | 4,240 | 4,760 |
ABS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities, amortized cost | 4,594 | 4,255 |
Fixed maturity securities, allowance for credit losses | 0 | 2 |
Fixed maturity securities, gross unrealized gains | 8 | 34 |
Fixed maturity securities, gross unrealized losses | 98 | 14 |
Fixed maturity securities, estimated fair value | 4,504 | 4,275 |
Foreign government | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities, amortized cost | 1,227 | 1,593 |
Fixed maturity securities, allowance for credit losses | 0 | 0 |
Fixed maturity securities, gross unrealized gains | 116 | 244 |
Fixed maturity securities, gross unrealized losses | 32 | 5 |
Fixed maturity securities, estimated fair value | $ 1,311 | $ 1,832 |
Investments (Maturities of Fixe
Investments (Maturities of Fixed Maturity Securities) (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Investments, Debt and Equity Securities [Abstract] | ||
Amortized cost, due in one year or less | $ 916 | |
Amortized cost, due after one year through five years | 11,564 | |
Amortized cost, due after five years through ten years | 16,844 | |
Amortized cost, due after ten years | 30,524 | |
Amortized cost, Structured Securities | 20,399 | |
Fixed maturity securities, amortized cost | 80,247 | $ 78,287 |
Estimated fair value, due in one year or less | 921 | |
Estimated fair value, due after one year through five years | 11,478 | |
Estimated fair value, due after five years through ten years | 16,493 | |
Estimated fair value, due after ten years | 32,520 | |
Estimated fair value, Structured Securities | 20,090 | |
Fixed maturity securities, estimated fair value | $ 81,502 | $ 86,527 |
Investments (Continuous Gross U
Investments (Continuous Gross Unrealized Losses for Fixed Maturity Securities by Sector) (Details) $ in Millions | Mar. 31, 2022USD ($) | Dec. 31, 2021USD ($) |
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities in continuous unrealized loss position, less than 12 months, estimated fair value | $ 36,804 | $ 16,729 |
Fixed maturity securities in continuous unrealized loss position, less than 12 months, gross unrealized losses | $ 1,957 | $ 305 |
Fixed maturity securities in continuous unrealized loss position, less than 12 months, number of securities | 5,202 | 2,423 |
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, estimated fair value | $ 4,073 | $ 1,658 |
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, gross unrealized losses | $ 640 | $ 145 |
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, number of securities | 710 | 368 |
U.S. corporate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities in continuous unrealized loss position, less than 12 months, estimated fair value | $ 14,235 | $ 5,051 |
Fixed maturity securities in continuous unrealized loss position, less than 12 months, gross unrealized losses | 884 | 111 |
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, estimated fair value | 1,971 | 887 |
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, gross unrealized losses | 317 | 76 |
Foreign corporate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities in continuous unrealized loss position, less than 12 months, estimated fair value | 5,532 | 2,016 |
Fixed maturity securities in continuous unrealized loss position, less than 12 months, gross unrealized losses | 387 | 60 |
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, estimated fair value | 555 | 305 |
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, gross unrealized losses | 107 | 43 |
RMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities in continuous unrealized loss position, less than 12 months, estimated fair value | 4,934 | 3,481 |
Fixed maturity securities in continuous unrealized loss position, less than 12 months, gross unrealized losses | 236 | 50 |
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, estimated fair value | 410 | 32 |
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, gross unrealized losses | 39 | 1 |
U.S. government and agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities in continuous unrealized loss position, less than 12 months, estimated fair value | 2,845 | 1,712 |
Fixed maturity securities in continuous unrealized loss position, less than 12 months, gross unrealized losses | 98 | 40 |
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, estimated fair value | 574 | 222 |
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, gross unrealized losses | 125 | 20 |
CMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities in continuous unrealized loss position, less than 12 months, estimated fair value | 4,077 | 1,390 |
Fixed maturity securities in continuous unrealized loss position, less than 12 months, gross unrealized losses | 129 | 21 |
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, estimated fair value | 391 | 95 |
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, gross unrealized losses | 44 | 3 |
State and political subdivision | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities in continuous unrealized loss position, less than 12 months, estimated fair value | 997 | 347 |
Fixed maturity securities in continuous unrealized loss position, less than 12 months, gross unrealized losses | 97 | 6 |
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, estimated fair value | 24 | 6 |
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, gross unrealized losses | 4 | 0 |
ABS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities in continuous unrealized loss position, less than 12 months, estimated fair value | 3,732 | 2,454 |
Fixed maturity securities in continuous unrealized loss position, less than 12 months, gross unrealized losses | 94 | 13 |
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, estimated fair value | 148 | 93 |
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, gross unrealized losses | 4 | 1 |
Foreign government | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities in continuous unrealized loss position, less than 12 months, estimated fair value | 452 | 278 |
Fixed maturity securities in continuous unrealized loss position, less than 12 months, gross unrealized losses | 32 | 4 |
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, estimated fair value | 0 | 18 |
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, gross unrealized losses | $ 0 | $ 1 |
Investments (Mortgage Loans by
Investments (Mortgage Loans by Portfolio Segment) (Details) - Mortgage Loans - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing receivable, before allowance for credit losses | $ 21,422 | $ 19,910 | ||
Financing receivable, before allowance for credit losses as a percentage of financing receivable, net of allowance for credit losses | 100.60% | 100.60% | ||
Financing receivable, allowance for credit losses | $ (127) | $ (123) | $ (90) | $ (94) |
Financing receivable, allowance for credit losses as a percentage of financing receivable, net of allowance for credit losses | (0.60%) | (0.60%) | ||
Financing receivable, net of allowance for credit losses | $ 21,295 | $ 19,787 | ||
Financing receivable, after allowance for credit losses as a percentage of financing receivable, net of allowance for credit losses | 100.00% | 100.00% | ||
Commercial | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing receivable, before allowance for credit losses | $ 13,092 | $ 12,159 | ||
Financing receivable, before allowance for credit losses as a percentage of financing receivable, net of allowance for credit losses | 61.50% | 61.40% | ||
Financing receivable, allowance for credit losses | $ (69) | $ (67) | (45) | (44) |
Agricultural | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing receivable, before allowance for credit losses | $ 4,104 | $ 4,128 | ||
Financing receivable, before allowance for credit losses as a percentage of financing receivable, net of allowance for credit losses | 19.30% | 20.90% | ||
Financing receivable, allowance for credit losses | $ (15) | $ (12) | (13) | (15) |
Residential | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing receivable, before allowance for credit losses | $ 4,226 | $ 3,623 | ||
Financing receivable, before allowance for credit losses as a percentage of financing receivable, net of allowance for credit losses | 19.80% | 18.30% | ||
Financing receivable, allowance for credit losses | $ (43) | $ (44) | $ (32) | $ (35) |
Investments (Rollforward of the
Investments (Rollforward of the Allowance for Credit Losses for Mortgage Loans by Portfolio Segment) (Details) - Mortgage Loans - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Financing receivable, allowance for credit losses, beginning of period | $ 123 | $ 94 |
Current period provision | 4 | (4) |
Financing receivable, allowance for credit losses, end of period | 127 | 90 |
Commercial | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Financing receivable, allowance for credit losses, beginning of period | 67 | 44 |
Current period provision | 2 | 1 |
Financing receivable, allowance for credit losses, end of period | 69 | 45 |
Agricultural | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Financing receivable, allowance for credit losses, beginning of period | 12 | 15 |
Current period provision | 3 | (2) |
Financing receivable, allowance for credit losses, end of period | 15 | 13 |
Residential | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Financing receivable, allowance for credit losses, beginning of period | 44 | 35 |
Current period provision | (1) | (3) |
Financing receivable, allowance for credit losses, end of period | $ 43 | $ 32 |
Investments (Credit Quality of
Investments (Credit Quality of Mortgage Loans by Portfolio Segment) (Details) - Mortgage Loans - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, originated in current FY | $ 1,254 | $ 5,793 |
Financing receivable, originated in FY before latest FY | 6,442 | 1,347 |
Financing receivable, originated two years before latest FY | 1,218 | 2,821 |
Financing receivable, originated three years before latest FY | 2,785 | 2,384 |
Financing receivable, originated four years before latest FY | 2,343 | 1,189 |
Financing receivable, originated five or more years before latest FY | 7,380 | 6,376 |
Financing receivable, before allowance for credit losses | 21,422 | 19,910 |
Commercial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, originated in current FY | 983 | 3,404 |
Financing receivable, originated in FY before latest FY | 3,403 | 529 |
Financing receivable, originated two years before latest FY | 528 | 1,977 |
Financing receivable, originated three years before latest FY | 1,976 | 1,451 |
Financing receivable, originated four years before latest FY | 1,450 | 739 |
Financing receivable, originated five or more years before latest FY | 4,752 | 4,059 |
Financing receivable, before allowance for credit losses | $ 13,092 | $ 12,159 |
Financing receivable, before allowance for credit losses by debt service coverage ratio as a percentage of financing receivable, before allowance for credit losses | 100.00% | 100.00% |
Commercial | Debt Service Coverage Ratio, Greater than 1.20x | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, before allowance for credit losses | $ 10,986 | $ 10,263 |
Financing receivable, before allowance for credit losses by debt service coverage ratio as a percentage of financing receivable, before allowance for credit losses | 83.90% | 84.40% |
Commercial | Debt Service Coverage Ratio, 1.00x to 1.20x | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, before allowance for credit losses | $ 569 | $ 595 |
Financing receivable, before allowance for credit losses by debt service coverage ratio as a percentage of financing receivable, before allowance for credit losses | 4.40% | 4.90% |
Commercial | Debt Service Coverage Ratio, Less than 1.00x | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, before allowance for credit losses | $ 1,537 | $ 1,301 |
Financing receivable, before allowance for credit losses by debt service coverage ratio as a percentage of financing receivable, before allowance for credit losses | 11.70% | 10.70% |
Commercial | Loan-to-Value Ratio, Less than 65% | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, originated in current FY | $ 637 | $ 2,771 |
Financing receivable, originated in FY before latest FY | 2,772 | 437 |
Financing receivable, originated two years before latest FY | 436 | 1,539 |
Financing receivable, originated three years before latest FY | 1,538 | 986 |
Financing receivable, originated four years before latest FY | 986 | 553 |
Financing receivable, originated five or more years before latest FY | 3,835 | 3,300 |
Financing receivable, before allowance for credit losses | 10,204 | 9,586 |
Commercial | Loan-to-Value Ratio, 65% to 75% | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, originated in current FY | 346 | 633 |
Financing receivable, originated in FY before latest FY | 631 | 92 |
Financing receivable, originated two years before latest FY | 92 | 383 |
Financing receivable, originated three years before latest FY | 383 | 406 |
Financing receivable, originated four years before latest FY | 406 | 127 |
Financing receivable, originated five or more years before latest FY | 579 | 458 |
Financing receivable, before allowance for credit losses | 2,437 | 2,099 |
Commercial | Loan-to-Value Ratio, 76% to 80% | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, originated in current FY | 0 | 0 |
Financing receivable, originated in FY before latest FY | 0 | 0 |
Financing receivable, originated two years before latest FY | 0 | 55 |
Financing receivable, originated three years before latest FY | 55 | 29 |
Financing receivable, originated four years before latest FY | 29 | 59 |
Financing receivable, originated five or more years before latest FY | 68 | 31 |
Financing receivable, before allowance for credit losses | 152 | 174 |
Commercial | Loan-to-Value Ratio, Greater than 80% | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, originated in current FY | 0 | 0 |
Financing receivable, originated in FY before latest FY | 0 | 0 |
Financing receivable, originated two years before latest FY | 0 | 0 |
Financing receivable, originated three years before latest FY | 0 | 30 |
Financing receivable, originated four years before latest FY | 29 | 0 |
Financing receivable, originated five or more years before latest FY | 270 | 270 |
Financing receivable, before allowance for credit losses | 299 | 300 |
Agricultural | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, originated in current FY | 139 | 1,264 |
Financing receivable, originated in FY before latest FY | 1,263 | 616 |
Financing receivable, originated two years before latest FY | 503 | 571 |
Financing receivable, originated three years before latest FY | 564 | 700 |
Financing receivable, originated four years before latest FY | 689 | 317 |
Financing receivable, originated five or more years before latest FY | 946 | 660 |
Financing receivable, before allowance for credit losses | 4,104 | 4,128 |
Agricultural | Loan-to-Value Ratio, Less than 65% | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, originated in current FY | 90 | 1,150 |
Financing receivable, originated in FY before latest FY | 1,149 | 539 |
Financing receivable, originated two years before latest FY | 426 | 510 |
Financing receivable, originated three years before latest FY | 503 | 674 |
Financing receivable, originated four years before latest FY | 669 | 284 |
Financing receivable, originated five or more years before latest FY | 904 | 608 |
Financing receivable, before allowance for credit losses | 3,741 | 3,765 |
Agricultural | Loan-to-Value Ratio, 65% to 75% | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, originated in current FY | 49 | 114 |
Financing receivable, originated in FY before latest FY | 114 | 77 |
Financing receivable, originated two years before latest FY | 77 | 61 |
Financing receivable, originated three years before latest FY | 61 | 26 |
Financing receivable, originated four years before latest FY | 20 | 33 |
Financing receivable, originated five or more years before latest FY | 42 | 52 |
Financing receivable, before allowance for credit losses | 363 | 363 |
Residential | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, originated in current FY | 132 | 1,125 |
Financing receivable, originated in FY before latest FY | 1,776 | 202 |
Financing receivable, originated two years before latest FY | 187 | 273 |
Financing receivable, originated three years before latest FY | 245 | 233 |
Financing receivable, originated four years before latest FY | 204 | 133 |
Financing receivable, originated five or more years before latest FY | 1,682 | 1,657 |
Financing receivable, before allowance for credit losses | 4,226 | 3,623 |
Residential | Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, originated in current FY | 132 | 1,124 |
Financing receivable, originated in FY before latest FY | 1,773 | 202 |
Financing receivable, originated two years before latest FY | 187 | 270 |
Financing receivable, originated three years before latest FY | 243 | 230 |
Financing receivable, originated four years before latest FY | 202 | 132 |
Financing receivable, originated five or more years before latest FY | 1,626 | 1,606 |
Financing receivable, before allowance for credit losses | 4,163 | 3,564 |
Residential | Nonperforming | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, originated in current FY | 0 | 1 |
Financing receivable, originated in FY before latest FY | 3 | 0 |
Financing receivable, originated two years before latest FY | 0 | 3 |
Financing receivable, originated three years before latest FY | 2 | 3 |
Financing receivable, originated four years before latest FY | 2 | 1 |
Financing receivable, originated five or more years before latest FY | 56 | 51 |
Financing receivable, before allowance for credit losses | $ 63 | $ 59 |
Investments (Past Due Mortgage
Investments (Past Due Mortgage Loans by Portfolio Segment) (Details) - Mortgage Loans - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Past Due [Line Items] | ||
Financing receivable, before allowance for credit losses | $ 21,422 | $ 19,910 |
Current | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable, before allowance for credit losses | 21,274 | 19,837 |
30 to 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable, before allowance for credit losses | 67 | 14 |
60 to 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable, before allowance for credit losses | 33 | 14 |
90 to 179 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable, before allowance for credit losses | 33 | 29 |
180 Days and Greater Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable, before allowance for credit losses | 15 | 16 |
Commercial | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable, before allowance for credit losses | 13,092 | 12,159 |
Commercial | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable, before allowance for credit losses | 13,092 | 12,159 |
Commercial | 30 to 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable, before allowance for credit losses | 0 | 0 |
Commercial | 60 to 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable, before allowance for credit losses | 0 | 0 |
Commercial | 90 to 179 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable, before allowance for credit losses | 0 | 0 |
Commercial | 180 Days and Greater Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable, before allowance for credit losses | 0 | 0 |
Agricultural | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable, before allowance for credit losses | 4,104 | 4,128 |
Agricultural | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable, before allowance for credit losses | 4,035 | 4,128 |
Agricultural | 30 to 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable, before allowance for credit losses | 51 | 0 |
Agricultural | 60 to 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable, before allowance for credit losses | 16 | 0 |
Agricultural | 90 to 179 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable, before allowance for credit losses | 2 | 0 |
Agricultural | 180 Days and Greater Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable, before allowance for credit losses | 0 | 0 |
Residential | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable, before allowance for credit losses | 4,226 | 3,623 |
Residential | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable, before allowance for credit losses | 4,147 | 3,550 |
Residential | 30 to 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable, before allowance for credit losses | 16 | 14 |
Residential | 60 to 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable, before allowance for credit losses | 17 | 14 |
Residential | 90 to 179 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable, before allowance for credit losses | 31 | 29 |
Residential | 180 Days and Greater Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable, before allowance for credit losses | $ 15 | $ 16 |
Investments (Mortgage Loans in
Investments (Mortgage Loans in Nonaccrual Status by Portfolio Segment) (Details) - Mortgage Loans - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Nonaccrual [Line Items] | ||
Financing receivable in nonaccrual status | $ 63 | $ 59 |
Commercial | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Financing receivable in nonaccrual status | 0 | 0 |
Agricultural | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Financing receivable in nonaccrual status | 0 | 0 |
Residential | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Financing receivable in nonaccrual status | $ 63 | $ 59 |
Investments (Net Unrealized Inv
Investments (Net Unrealized Investment Gains (Losses)) (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Investments, Debt and Equity Securities [Abstract] | ||
Fixed maturity securities | $ 1,266 | $ 8,251 |
Derivatives | 338 | 320 |
Other | (10) | (27) |
Subtotal | 1,594 | 8,544 |
Amounts allocated from: Future policy benefits | (1,102) | (3,210) |
Amounts allocated from: DAC, VOBA and DSI | (81) | (387) |
Subtotal | (1,183) | (3,597) |
Deferred income tax benefit (expense) | (86) | (1,039) |
Net unrealized investment gains (losses) | $ 325 | $ 3,908 |
Investments (Changes in Net Unr
Investments (Changes in Net Unrealized Investment Gains (Losses)) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Investments, Debt and Equity Securities [Abstract] | |
Unrealized investment gains (losses), beginning of period | $ 3,908 |
Unrealized investment gains (losses) during the period | (6,950) |
Unrealized investment gains (losses) relating to: Future policy benefits | 2,108 |
Unrealized investment gains (losses) relating to: DAC, VOBA and DSI | 306 |
Unrealized investment gains (losses) relating to: Deferred income tax benefit (expense) | 953 |
Unrealized investment gains (losses), end of period | 325 |
Change in net unrealized investment gains (losses) | $ (3,583) |
Investments (Securities Lending
Investments (Securities Lending) (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Securities Financing Transaction [Line Items] | ||
Cash collateral received from counterparties | $ 5,168 | $ 4,611 |
Securities collateral received from counterparties | 0 | 2 |
Reinvestment portfolio — estimated fair value | 5,202 | 4,730 |
Amortized cost | ||
Securities Financing Transaction [Line Items] | ||
Securities on loan | 4,491 | 3,573 |
Estimated fair value | ||
Securities Financing Transaction [Line Items] | ||
Securities on loan | $ 5,073 | $ 4,539 |
Investments (Securities Lendi_2
Investments (Securities Lending Remaining Tenor) (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Securities Financing Transaction [Line Items] | ||
Cash collateral received from counterparties | $ 5,168 | $ 4,611 |
Remaining Tenor of Securities Lending Agreements: Open | ||
Securities Financing Transaction [Line Items] | ||
Cash collateral received from counterparties | 1,160 | 1,095 |
Remaining Tenor of Securities Lending Agreements: 1 Month or Less | ||
Securities Financing Transaction [Line Items] | ||
Cash collateral received from counterparties | 2,257 | 2,125 |
Remaining Tenor of Securities Lending Agreements: 1 to 6 Months | ||
Securities Financing Transaction [Line Items] | ||
Cash collateral received from counterparties | 1,751 | 1,391 |
U.S. government and agency | ||
Securities Financing Transaction [Line Items] | ||
Cash collateral received from counterparties | 4,545 | 4,610 |
U.S. government and agency | Remaining Tenor of Securities Lending Agreements: Open | ||
Securities Financing Transaction [Line Items] | ||
Cash collateral received from counterparties | 1,159 | 1,094 |
U.S. government and agency | Remaining Tenor of Securities Lending Agreements: 1 Month or Less | ||
Securities Financing Transaction [Line Items] | ||
Cash collateral received from counterparties | 1,635 | 2,125 |
U.S. government and agency | Remaining Tenor of Securities Lending Agreements: 1 to 6 Months | ||
Securities Financing Transaction [Line Items] | ||
Cash collateral received from counterparties | 1,751 | 1,391 |
U.S. corporate | ||
Securities Financing Transaction [Line Items] | ||
Cash collateral received from counterparties | 480 | 1 |
U.S. corporate | Remaining Tenor of Securities Lending Agreements: Open | ||
Securities Financing Transaction [Line Items] | ||
Cash collateral received from counterparties | 1 | 1 |
U.S. corporate | Remaining Tenor of Securities Lending Agreements: 1 Month or Less | ||
Securities Financing Transaction [Line Items] | ||
Cash collateral received from counterparties | 479 | 0 |
U.S. corporate | Remaining Tenor of Securities Lending Agreements: 1 to 6 Months | ||
Securities Financing Transaction [Line Items] | ||
Cash collateral received from counterparties | 0 | 0 |
Debt Security, Corporate, Non-US | ||
Securities Financing Transaction [Line Items] | ||
Cash collateral received from counterparties | 143 | 0 |
Debt Security, Corporate, Non-US | Remaining Tenor of Securities Lending Agreements: Open | ||
Securities Financing Transaction [Line Items] | ||
Cash collateral received from counterparties | 0 | 0 |
Debt Security, Corporate, Non-US | Remaining Tenor of Securities Lending Agreements: 1 Month or Less | ||
Securities Financing Transaction [Line Items] | ||
Cash collateral received from counterparties | 143 | 0 |
Debt Security, Corporate, Non-US | Remaining Tenor of Securities Lending Agreements: 1 to 6 Months | ||
Securities Financing Transaction [Line Items] | ||
Cash collateral received from counterparties | $ 0 | $ 0 |
Investments (Invested Assets on
Investments (Invested Assets on Deposit, Held In Trust and Pledged as Collateral) (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Investments, Debt and Equity Securities [Abstract] | ||
Invested assets on deposit (regulatory deposits) | $ 9,113 | $ 9,996 |
Invested assets held in trust (reinsurance agreements) | 5,693 | 6,023 |
Invested assets pledged as collateral | 6,030 | 5,116 |
Total invested assets on deposit, held in trust and pledged as collateral | $ 20,836 | $ 21,135 |
Investments (Variable Interest
Investments (Variable Interest Entities) (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Variable Interest Entity [Line Items] | ||
Carrying amount | $ 233,506 | $ 247,255 |
VIE, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Carrying amount | 19,623 | 19,992 |
Maximum exposure to loss | 21,153 | 20,760 |
VIE, Not Primary Beneficiary | Fixed maturity securities | ||
Variable Interest Entity [Line Items] | ||
Carrying amount | 15,748 | 16,326 |
Maximum exposure to loss | 15,912 | 15,659 |
VIE, Not Primary Beneficiary | Limited partnerships and LLCs | ||
Variable Interest Entity [Line Items] | ||
Carrying amount | 3,875 | 3,666 |
Maximum exposure to loss | $ 5,241 | $ 5,101 |
Investments (Net Investment Inc
Investments (Net Investment Income) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Net Investment Income [Line Items] | ||
Gross investment income | $ 1,176 | $ 1,203 |
Less: Investment expenses | 41 | 34 |
Net investment income | 1,135 | 1,169 |
Fixed maturity securities | ||
Net Investment Income [Line Items] | ||
Gross investment income | 709 | 680 |
Equity securities | ||
Net Investment Income [Line Items] | ||
Gross investment income | 0 | 1 |
Mortgage loans | ||
Net Investment Income [Line Items] | ||
Gross investment income | 202 | 163 |
Policy loans | ||
Net Investment Income [Line Items] | ||
Gross investment income | 9 | 10 |
Limited partnerships and LLCs | ||
Net Investment Income [Line Items] | ||
Gross investment income | 241 | 338 |
Cash, cash equivalents and short-term investments | ||
Net Investment Income [Line Items] | ||
Gross investment income | 1 | 1 |
Other | ||
Net Investment Income [Line Items] | ||
Gross investment income | $ 14 | $ 10 |
Investments (Components of Net
Investments (Components of Net Investment Gains (Losses)) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Net Investment Gains (Losses) [Line Items] | ||
Net investment gains (losses) | $ (67) | $ 12 |
Fixed maturity securities | ||
Net Investment Gains (Losses) [Line Items] | ||
Net investment gains (losses) | (41) | 8 |
Equity securities | ||
Net Investment Gains (Losses) [Line Items] | ||
Net investment gains (losses) | (6) | 0 |
Mortgage loans | ||
Net Investment Gains (Losses) [Line Items] | ||
Net investment gains (losses) | (4) | 4 |
Limited partnerships and LLCs | ||
Net Investment Gains (Losses) [Line Items] | ||
Net investment gains (losses) | $ (16) | $ 0 |
Investments (Sales or Disposals
Investments (Sales or Disposals of Fixed Maturity Securities) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | ||
Proceeds from sales or disposals of fixed maturity securities | $ 2,540 | $ 1,218 |
Fixed maturity securities, gross investment gains | 47 | 31 |
Fixed maturity securities, gross investment losses | (86) | (17) |
Fixed maturity securities, net investment gains (losses) | $ (39) | $ 14 |
Investments (Fixed Maturity S_2
Investments (Fixed Maturity Securities - Narrative) (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2022USD ($) | Dec. 31, 2021USD ($) | |
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities, estimated fair value | $ 81,502 | $ 86,527 |
Fixed maturity securities, allowance for credit losses | $ 11 | 11 |
Fixed maturity securities with allowance for credit losses, number of securities | 7 | |
Fixed maturity securities, total write-offs | $ 2 | |
Non-Income Producing | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities, estimated fair value | 44 | 3 |
Fixed maturity securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Accrued interest receivable | $ 572 | $ 527 |
Investments (Mortgage Loans - N
Investments (Mortgage Loans - Narrative) (Details) - Mortgage Loans - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing receivables purchased from third parties | $ 840 | $ 178 | |
Accrued interest receivable | 93 | $ 95 | |
Financing receivable, before allowance for credit losses | 21,422 | 19,910 | |
COVID-19 Pandemic financing receivables in nonaccrual status | 31 | 30 | |
Financing receivable in nonaccrual status | 63 | 59 | |
COVID-19 Pandemic Financial Asset Past Due | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing receivable, before allowance for credit losses | $ 31 | $ 30 | |
Minimum | Performing | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing receivable, before allowance for credit losses by performance status as a percentage of financing receivables, before allowance for credit losses | 99.00% | 99.00% | |
Maximum | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing receivables in nonaccrual status, investment income | $ 1 | $ 1 | |
Residential | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing receivable, before allowance for credit losses | 4,226 | $ 3,623 | |
Financing receivable in nonaccrual status | 63 | 59 | |
Financing receivables in nonaccrual status with no allowance for credit losses | 0 | 0 | |
Residential | Performing | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing receivable, before allowance for credit losses | $ 4,163 | $ 3,564 |
Investments (Other Invested Ass
Investments (Other Invested Assets - Narrative) (Details) | Mar. 31, 2022 |
Minimum | |
Derivative [Line Items] | |
Percentage of other invested assets comprised of freestanding derivatives with positive estimated fair values | 90.00% |
Investments (Securities Lendi_3
Investments (Securities Lending - Narrative) (Details) $ in Millions | Mar. 31, 2022USD ($) |
Investments, Debt and Equity Securities [Abstract] | |
Cash collateral on deposit from counterparties | $ 1,100 |
Percentage of reinvestment portfolio invested in liquid assets | 55.00% |
Investments (Invested Assets _2
Investments (Invested Assets on Deposit, Held in Trust and Pledged as Collateral - Narrative) (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Invested assets on deposit (regulatory deposits) | $ 9,113 | $ 9,996 |
Invested assets held in trust (reinsurance agreements) | 5,693 | 6,023 |
Restricted Cash and Cash Equivalents | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Invested assets on deposit (regulatory deposits) | 41 | 25 |
Invested assets held in trust (reinsurance agreements) | 101 | 118 |
FHLB common stock | $ 89 | $ 70 |
Investments (Net Investment I_2
Investments (Net Investment Income - Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Net Investment Income [Line Items] | ||
Net investment income | $ 1,135 | $ 1,169 |
Other limited partnership interests | ||
Net Investment Income [Line Items] | ||
Net investment income | $ 212 | $ 331 |
Investments (Components of Ne_2
Investments (Components of Net Investment Gains (Losses) - Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Gain (Loss) on Securities [Line Items] | ||
Net investment gains (losses) | $ (67) | $ 12 |
Foreign Exchange | ||
Gain (Loss) on Securities [Line Items] | ||
Net investment gains (losses) | $ (15) | $ 0 |
Derivatives (Primary Risks Mana
Derivatives (Primary Risks Managed by Derivatives) (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | $ 86,547 | $ 90,680 |
Derivative assets | 2,490 | 3,298 |
Derivative liabilities | 9,172 | 10,444 |
Embedded Derivative, Fair Value of Embedded Derivative Asset | 151 | 186 |
Embedded Derivative, Fair Value of Embedded Derivative Liability | 7,311 | 8,800 |
Derivatives Designated as Hedging Instruments: | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 3,734 | 3,417 |
Derivative assets | 262 | 250 |
Derivative liabilities | 20 | 22 |
Derivatives Designated as Hedging Instruments: | Cash flow hedges: | Interest rate forwards | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 150 | 180 |
Derivative assets | 6 | 30 |
Derivative liabilities | 0 | 0 |
Derivatives Designated as Hedging Instruments: | Cash flow hedges: | Foreign currency swaps | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 3,584 | 3,237 |
Derivative assets | 256 | 220 |
Derivative liabilities | 20 | 22 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 82,813 | 87,263 |
Derivative assets | 2,077 | 2,862 |
Derivative liabilities | 1,841 | 1,622 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Interest rate swaps | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 2,770 | 2,595 |
Derivative assets | 222 | 325 |
Derivative liabilities | 11 | 17 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Interest rate caps | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 5,100 | 5,100 |
Derivative assets | 91 | 29 |
Derivative liabilities | 17 | 4 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Interest rate options | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 8,380 | 8,050 |
Derivative assets | 50 | 83 |
Derivative liabilities | 9 | 0 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Interest rate forwards | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 11,839 | 9,808 |
Derivative assets | 65 | 627 |
Derivative liabilities | 544 | 109 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Foreign currency swaps | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 993 | 956 |
Derivative assets | 94 | 94 |
Derivative liabilities | 22 | 21 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Foreign currency forwards | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 303 | 288 |
Derivative assets | 0 | 0 |
Derivative liabilities | 3 | 4 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Credit default swaps — written | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 1,793 | 1,724 |
Derivative assets | 29 | 39 |
Derivative liabilities | 2 | 1 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Credit default swaptions | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 0 | 150 |
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Equity index options | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 24,143 | 24,692 |
Derivative assets | 981 | 1,155 |
Derivative liabilities | 776 | 877 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Equity variance swaps | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 281 | 281 |
Derivative assets | 9 | 9 |
Derivative liabilities | 1 | 1 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Equity total return swaps | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 26,311 | 32,719 |
Derivative assets | 536 | 493 |
Derivative liabilities | 456 | 588 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Hybrid options | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 900 | 900 |
Derivative assets | 0 | 8 |
Derivative liabilities | 0 | 0 |
Ceded guaranteed minimum income benefits | ||
Derivatives, Fair Value [Line Items] | ||
Embedded Derivative, Fair Value of Embedded Derivative Asset | 151 | 186 |
Embedded Derivative, Fair Value of Embedded Derivative Liability | 0 | 0 |
Direct guaranteed minimum benefits | ||
Derivatives, Fair Value [Line Items] | ||
Embedded Derivative, Fair Value of Embedded Derivative Asset | 0 | 0 |
Embedded Derivative, Fair Value of Embedded Derivative Liability | 1,285 | 1,725 |
Assumed guaranteed minimum benefits | ||
Derivatives, Fair Value [Line Items] | ||
Embedded Derivative, Fair Value of Embedded Derivative Asset | 0 | 0 |
Embedded Derivative, Fair Value of Embedded Derivative Liability | 350 | 427 |
Direct index-linked annuities | ||
Derivatives, Fair Value [Line Items] | ||
Embedded Derivative, Fair Value of Embedded Derivative Asset | 0 | 0 |
Embedded Derivative, Fair Value of Embedded Derivative Liability | 5,309 | 6,211 |
Direct index-linked annuities | Assumed index-linked annuities | ||
Derivatives, Fair Value [Line Items] | ||
Embedded Derivative, Fair Value of Embedded Derivative Asset | 0 | 0 |
Embedded Derivative, Fair Value of Embedded Derivative Liability | $ 367 | $ 437 |
Derivatives (Derivatives Pertai
Derivatives (Derivatives Pertaining to Hedged Items) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net Derivative Gains (Losses) Recognized for Hedged Items | $ (5) | $ 0 |
Amount of Gains (Losses) Deferred in AOCI | 20 | (67) |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net Derivative Gains (Losses) Recognized for Hedged Items | (5) | 3 |
Amount of Gains (Losses) Deferred in AOCI | 0 | 0 |
Cash flow hedges: | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net Derivative Gains (Losses) Recognized for Hedged Items | 0 | (3) |
Amount of Gains (Losses) Deferred in AOCI | 20 | (67) |
Net Derivative Gains (Losses) Recognized for Derivatives | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | 560 | (1,387) |
Net Derivative Gains (Losses) Recognized for Derivatives | Derivatives Not Designated or Not Qualifying as Hedging Instruments: | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | 559 | (1,393) |
Net Derivative Gains (Losses) Recognized for Derivatives | Cash flow hedges: | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | 1 | 6 |
Net Investment Income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | 11 | 9 |
Net Investment Income | Derivatives Not Designated or Not Qualifying as Hedging Instruments: | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | 0 | 0 |
Net Investment Income | Cash flow hedges: | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | 11 | 9 |
Interest rate | Derivatives Not Designated or Not Qualifying as Hedging Instruments: | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net Derivative Gains (Losses) Recognized for Hedged Items | 0 | 0 |
Amount of Gains (Losses) Deferred in AOCI | 0 | 0 |
Interest rate | Cash flow hedges: | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net Derivative Gains (Losses) Recognized for Hedged Items | 0 | 0 |
Amount of Gains (Losses) Deferred in AOCI | (21) | (52) |
Interest rate | Net Derivative Gains (Losses) Recognized for Derivatives | Derivatives Not Designated or Not Qualifying as Hedging Instruments: | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | (1,131) | (1,912) |
Interest rate | Net Derivative Gains (Losses) Recognized for Derivatives | Cash flow hedges: | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | 1 | 1 |
Interest rate | Net Investment Income | Derivatives Not Designated or Not Qualifying as Hedging Instruments: | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | 0 | 0 |
Interest rate | Net Investment Income | Cash flow hedges: | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | 1 | 1 |
Foreign currency exchange rate | Derivatives Not Designated or Not Qualifying as Hedging Instruments: | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net Derivative Gains (Losses) Recognized for Hedged Items | (5) | 3 |
Amount of Gains (Losses) Deferred in AOCI | 0 | 0 |
Foreign currency exchange rate | Cash flow hedges: | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net Derivative Gains (Losses) Recognized for Hedged Items | 0 | (3) |
Amount of Gains (Losses) Deferred in AOCI | 41 | (15) |
Foreign currency exchange rate | Net Derivative Gains (Losses) Recognized for Derivatives | Derivatives Not Designated or Not Qualifying as Hedging Instruments: | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | 10 | (7) |
Foreign currency exchange rate | Net Derivative Gains (Losses) Recognized for Derivatives | Cash flow hedges: | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | 0 | 5 |
Foreign currency exchange rate | Net Investment Income | Derivatives Not Designated or Not Qualifying as Hedging Instruments: | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | 0 | 0 |
Foreign currency exchange rate | Net Investment Income | Cash flow hedges: | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | 10 | 8 |
Credit | Derivatives Not Designated or Not Qualifying as Hedging Instruments: | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net Derivative Gains (Losses) Recognized for Hedged Items | 0 | 0 |
Amount of Gains (Losses) Deferred in AOCI | 0 | 0 |
Credit | Net Derivative Gains (Losses) Recognized for Derivatives | Derivatives Not Designated or Not Qualifying as Hedging Instruments: | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | (7) | 3 |
Credit | Net Investment Income | Derivatives Not Designated or Not Qualifying as Hedging Instruments: | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | 0 | 0 |
Equity market | Derivatives Not Designated or Not Qualifying as Hedging Instruments: | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net Derivative Gains (Losses) Recognized for Hedged Items | 0 | 0 |
Amount of Gains (Losses) Deferred in AOCI | 0 | 0 |
Equity market | Net Derivative Gains (Losses) Recognized for Derivatives | Derivatives Not Designated or Not Qualifying as Hedging Instruments: | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | 308 | (142) |
Equity market | Net Investment Income | Derivatives Not Designated or Not Qualifying as Hedging Instruments: | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | 0 | 0 |
Embedded | Derivatives Not Designated or Not Qualifying as Hedging Instruments: | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net Derivative Gains (Losses) Recognized for Hedged Items | 0 | 0 |
Amount of Gains (Losses) Deferred in AOCI | 0 | 0 |
Embedded | Net Derivative Gains (Losses) Recognized for Derivatives | Derivatives Not Designated or Not Qualifying as Hedging Instruments: | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | 1,379 | 665 |
Embedded | Net Investment Income | Derivatives Not Designated or Not Qualifying as Hedging Instruments: | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | $ 0 | $ 0 |
Derivatives (Credit Derivatives
Derivatives (Credit Derivatives) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Credit Derivatives [Line Items] | |||
Estimated Fair Value of Credit Default Swaps | $ 27 | $ 38 | |
Maximum Amount of Future Payments under Credit Default Swaps | $ 1,793 | $ 1,724 | |
Weighted Average Years to Maturity (2) | 4 years 3 months 18 days | 4 years 1 month 6 days | |
Credit default swaps | Aaa/Aa/A | |||
Credit Derivatives [Line Items] | |||
Estimated Fair Value of Credit Default Swaps | $ 9 | $ 12 | |
Maximum Amount of Future Payments under Credit Default Swaps | $ 599 | $ 589 | |
Weighted Average Years to Maturity (2) | 2 years 2 months 12 days | 2 years 4 months 24 days | |
Credit default swaps | Baa | |||
Credit Derivatives [Line Items] | |||
Estimated Fair Value of Credit Default Swaps | $ 16 | $ 27 | |
Maximum Amount of Future Payments under Credit Default Swaps | $ 1,166 | $ 1,131 | |
Weighted Average Years to Maturity (2) | 5 years 3 months 18 days | 5 years | |
Credit default swaps | Ba | |||
Credit Derivatives [Line Items] | |||
Estimated Fair Value of Credit Default Swaps | $ 3 | $ 0 | |
Maximum Amount of Future Payments under Credit Default Swaps | $ 24 | $ 0 | |
Weighted Average Years to Maturity (2) | 4 years 8 months 12 days | 0 years | 0 years |
Credit default swaps | Caa and Lower | |||
Credit Derivatives [Line Items] | |||
Estimated Fair Value of Credit Default Swaps | $ (1) | $ (1) | |
Maximum Amount of Future Payments under Credit Default Swaps | $ 4 | $ 4 | |
Weighted Average Years to Maturity (2) | 3 years 8 months 12 days | 0 years | 4 years |
Derivatives (Estimated Fair Val
Derivatives (Estimated Fair Value of Derivatives Assets and Liabilities after Master Netting Agreements and Cash Collateral) (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Offsetting Derivative Assets [Abstract] | ||
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | $ 2,363 | $ 3,113 |
Derivative Asset, Not Offset, Policy Election Deduction | (1,321) | (1,155) |
Derivative Asset, Collateral, Obligation to Return Cash, Offset | (837) | (1,480) |
Derivative Asset, Fair Value, Amount Offset Against Collateral | 205 | 478 |
Derivative Asset, Collateral, Obligation to Return Securities, Offset | (188) | (413) |
Derivative Asset, Fair Value, Offset Against Collateral, Net of Not Subject to Master Netting Arrangement, Policy Election | 17 | 65 |
Offsetting Derivative Liabilities [Abstract] | ||
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | 1,854 | 1,632 |
Derivative Liability, Not Offset, Policy Election Deduction | (1,321) | (1,155) |
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 0 | 0 |
Derivative Liability, Fair Value, Amount Offset Against Collateral | 533 | 477 |
Derivative Liability, Collateral, Right to Reclaim Securities, Offset | (533) | (477) |
Derivative Liability, Fair Value, Offset Against Collateral, Net of Not Subject to Master Netting Arrangement, Policy Election | $ 0 | $ 0 |
Derivatives (Credit Risk on Fre
Derivatives (Credit Risk on Freestanding Derivatives) (Details) - Derivatives Subject To Credit-Contingent Provisions - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Credit Derivatives [Line Items] | ||
Estimated fair value of derivatives in a net liability position (1) | $ 533 | $ 477 |
Fixed maturity securities | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Collateral Provided (2): | $ 1,465 | $ 839 |
Derivatives (Derivatives - Narr
Derivatives (Derivatives - Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Maximum Length of Time Hedged in Cash Flow Hedge | 1 year | 2 years |
Derivative AOCI associated with Cash Flow Hedges Pre Tax | $ 338 | $ 320 |
Fair Value (Recurring Fair Valu
Fair Value (Recurring Fair Value Measurements) (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | $ 81,502 | $ 86,527 |
Equity securities | 75 | 95 |
Short-term investments | 111 | 662 |
Derivative assets: (1) | 2,490 | 3,298 |
Embedded derivatives within asset host contracts | 151 | 186 |
Separate account assets | 96,995 | 106,225 |
Liabilities [Abstract] | ||
Derivative liabilities: (1) | 9,172 | 10,444 |
Embedded derivatives within liability host contracts | 7,311 | 8,800 |
Recurring | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 81,502 | 86,527 |
Equity securities | 75 | 95 |
Short-term investments | 111 | 662 |
Derivative assets: (1) | 2,339 | 3,112 |
Embedded derivatives within asset host contracts | 151 | 186 |
Separate account assets | 96,995 | 106,225 |
Total assets | 181,173 | 196,807 |
Liabilities [Abstract] | ||
Derivative liabilities: (1) | 1,861 | 1,644 |
Embedded derivatives within liability host contracts | 7,311 | 8,800 |
Total liabilities | 9,172 | 10,444 |
Recurring | Interest rate | ||
Assets [Abstract] | ||
Derivative assets: (1) | 434 | 1,094 |
Liabilities [Abstract] | ||
Derivative liabilities: (1) | 581 | 130 |
Recurring | Foreign currency exchange rate | ||
Assets [Abstract] | ||
Derivative assets: (1) | 350 | 314 |
Liabilities [Abstract] | ||
Derivative liabilities: (1) | 45 | 47 |
Recurring | Credit | ||
Assets [Abstract] | ||
Derivative assets: (1) | 29 | 39 |
Liabilities [Abstract] | ||
Derivative liabilities: (1) | 2 | 1 |
Recurring | Equity market | ||
Assets [Abstract] | ||
Derivative assets: (1) | 1,526 | 1,665 |
Liabilities [Abstract] | ||
Derivative liabilities: (1) | 1,233 | 1,466 |
Recurring | U.S. corporate | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 35,451 | 38,474 |
Recurring | Foreign corporate | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 10,947 | 11,605 |
Recurring | RMBS | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 8,692 | 9,220 |
Recurring | U.S. government and agency | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 9,463 | 9,168 |
Recurring | CMBS | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 6,894 | 7,193 |
Recurring | State and political subdivision | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 4,240 | 4,760 |
Recurring | ABS | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 4,504 | 4,275 |
Recurring | Foreign government | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 1,311 | 1,832 |
Recurring | Level 1 | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 4,093 | 3,159 |
Equity securities | 20 | 21 |
Short-term investments | 90 | 640 |
Derivative assets: (1) | 0 | 0 |
Embedded derivatives within asset host contracts | 0 | 0 |
Separate account assets | 44 | 41 |
Total assets | 4,247 | 3,861 |
Liabilities [Abstract] | ||
Derivative liabilities: (1) | 0 | 0 |
Embedded derivatives within liability host contracts | 0 | 0 |
Total liabilities | 0 | 0 |
Recurring | Level 1 | Interest rate | ||
Assets [Abstract] | ||
Derivative assets: (1) | 0 | 0 |
Liabilities [Abstract] | ||
Derivative liabilities: (1) | 0 | 0 |
Recurring | Level 1 | Foreign currency exchange rate | ||
Assets [Abstract] | ||
Derivative assets: (1) | 0 | 0 |
Liabilities [Abstract] | ||
Derivative liabilities: (1) | 0 | 0 |
Recurring | Level 1 | Credit | ||
Assets [Abstract] | ||
Derivative assets: (1) | 0 | 0 |
Liabilities [Abstract] | ||
Derivative liabilities: (1) | 0 | 0 |
Recurring | Level 1 | Equity market | ||
Assets [Abstract] | ||
Derivative assets: (1) | 0 | 0 |
Liabilities [Abstract] | ||
Derivative liabilities: (1) | 0 | 0 |
Recurring | Level 1 | U.S. corporate | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 0 | 0 |
Recurring | Level 1 | Foreign corporate | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 0 | 0 |
Recurring | Level 1 | RMBS | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 0 | 0 |
Recurring | Level 1 | U.S. government and agency | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 4,093 | 3,159 |
Recurring | Level 1 | CMBS | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 0 | 0 |
Recurring | Level 1 | State and political subdivision | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 0 | 0 |
Recurring | Level 1 | ABS | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 0 | 0 |
Recurring | Level 1 | Foreign government | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 0 | 0 |
Recurring | Level 2 | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 75,574 | 81,723 |
Equity securities | 42 | 61 |
Short-term investments | 21 | 20 |
Derivative assets: (1) | 2,306 | 3,074 |
Embedded derivatives within asset host contracts | 0 | 0 |
Separate account assets | 96,951 | 106,184 |
Total assets | 174,894 | 191,062 |
Liabilities [Abstract] | ||
Derivative liabilities: (1) | 1,858 | 1,642 |
Embedded derivatives within liability host contracts | 0 | 0 |
Total liabilities | 1,858 | 1,642 |
Recurring | Level 2 | Interest rate | ||
Assets [Abstract] | ||
Derivative assets: (1) | 434 | 1,094 |
Liabilities [Abstract] | ||
Derivative liabilities: (1) | 581 | 130 |
Recurring | Level 2 | Foreign currency exchange rate | ||
Assets [Abstract] | ||
Derivative assets: (1) | 335 | 304 |
Liabilities [Abstract] | ||
Derivative liabilities: (1) | 45 | 47 |
Recurring | Level 2 | Credit | ||
Assets [Abstract] | ||
Derivative assets: (1) | 20 | 27 |
Liabilities [Abstract] | ||
Derivative liabilities: (1) | 0 | 0 |
Recurring | Level 2 | Equity market | ||
Assets [Abstract] | ||
Derivative assets: (1) | 1,517 | 1,649 |
Liabilities [Abstract] | ||
Derivative liabilities: (1) | 1,232 | 1,465 |
Recurring | Level 2 | U.S. corporate | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 34,416 | 37,568 |
Recurring | Level 2 | Foreign corporate | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 10,364 | 11,112 |
Recurring | Level 2 | RMBS | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 8,675 | 9,209 |
Recurring | Level 2 | U.S. government and agency | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 5,370 | 6,009 |
Recurring | Level 2 | CMBS | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 6,888 | 7,149 |
Recurring | Level 2 | State and political subdivision | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 4,240 | 4,760 |
Recurring | Level 2 | ABS | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 4,333 | 4,110 |
Recurring | Level 2 | Foreign government | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 1,288 | 1,806 |
Recurring | Level 3 | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 1,835 | 1,645 |
Equity securities | 13 | 13 |
Short-term investments | 0 | 2 |
Derivative assets: (1) | 33 | 38 |
Embedded derivatives within asset host contracts | 151 | 186 |
Separate account assets | 0 | 0 |
Total assets | 2,032 | 1,884 |
Liabilities [Abstract] | ||
Derivative liabilities: (1) | 3 | 2 |
Embedded derivatives within liability host contracts | 7,311 | 8,800 |
Total liabilities | 7,314 | 8,802 |
Recurring | Level 3 | Interest rate | ||
Assets [Abstract] | ||
Derivative assets: (1) | 0 | 0 |
Liabilities [Abstract] | ||
Derivative liabilities: (1) | 0 | 0 |
Recurring | Level 3 | Foreign currency exchange rate | ||
Assets [Abstract] | ||
Derivative assets: (1) | 15 | 10 |
Liabilities [Abstract] | ||
Derivative liabilities: (1) | 0 | 0 |
Recurring | Level 3 | Credit | ||
Assets [Abstract] | ||
Derivative assets: (1) | 9 | 12 |
Liabilities [Abstract] | ||
Derivative liabilities: (1) | 2 | 1 |
Recurring | Level 3 | Equity market | ||
Assets [Abstract] | ||
Derivative assets: (1) | 9 | 16 |
Liabilities [Abstract] | ||
Derivative liabilities: (1) | 1 | 1 |
Recurring | Level 3 | U.S. corporate | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 1,035 | 906 |
Recurring | Level 3 | Foreign corporate | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 583 | 493 |
Recurring | Level 3 | RMBS | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 17 | 11 |
Recurring | Level 3 | U.S. government and agency | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 0 | 0 |
Recurring | Level 3 | CMBS | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 6 | 44 |
Recurring | Level 3 | State and political subdivision | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 0 | 0 |
Recurring | Level 3 | ABS | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 171 | 165 |
Recurring | Level 3 | Foreign government | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | $ 23 | $ 26 |
Fair Value (Assets and Liabilit
Fair Value (Assets and Liabilities Measured - Quantitative Information) (Details) - Level 3 | Mar. 31, 2022 | Dec. 31, 2021 |
Measurement Input, Mortality Rate | Minimum | ||
Fair Value, Option, Quantitative Disclosures | ||
Embedded Derivative Liability, Measurement Input | 0.0003 | 0.0003 |
Measurement Input, Mortality Rate | Maximum | ||
Fair Value, Option, Quantitative Disclosures | ||
Embedded Derivative Liability, Measurement Input | 0.1262 | 0.1262 |
Measurement Input, Lapse Rate | Minimum | ||
Fair Value, Option, Quantitative Disclosures | ||
Embedded Derivative Liability, Measurement Input | 0.0030 | 0.0030 |
Measurement Input, Lapse Rate | Maximum | ||
Fair Value, Option, Quantitative Disclosures | ||
Embedded Derivative Liability, Measurement Input | 0.1450 | 0.1450 |
Measurement Input, Utilization Rate | Minimum | ||
Fair Value, Option, Quantitative Disclosures | ||
Embedded Derivative Liability, Measurement Input | 0 | 0 |
Measurement Input, Utilization Rate | Maximum | ||
Fair Value, Option, Quantitative Disclosures | ||
Embedded Derivative Liability, Measurement Input | 0.2500 | 0.2500 |
Measurement Input, Withdrawal Rate | Minimum | ||
Fair Value, Option, Quantitative Disclosures | ||
Embedded Derivative Liability, Measurement Input | 0.0025 | 0.0025 |
Measurement Input, Withdrawal Rate | Maximum | ||
Fair Value, Option, Quantitative Disclosures | ||
Embedded Derivative Liability, Measurement Input | 0.1000 | 0.1000 |
Measurement Input, Long Term Equity Volatilities | Minimum | ||
Fair Value, Option, Quantitative Disclosures | ||
Embedded Derivative Liability, Measurement Input | 0.1644 | 0.1644 |
Measurement Input, Long Term Equity Volatilities | Maximum | ||
Fair Value, Option, Quantitative Disclosures | ||
Embedded Derivative Liability, Measurement Input | 0.2216 | 0.2216 |
Measurement Input, Entity Credit Risk | Minimum | ||
Fair Value, Option, Quantitative Disclosures | ||
Embedded Derivative Liability, Measurement Input | 0.0010 | (0.0038) |
Measurement Input, Entity Credit Risk | Maximum | ||
Fair Value, Option, Quantitative Disclosures | ||
Embedded Derivative Liability, Measurement Input | 0.0174 | 0.0149 |
Fair Value (Unobservable Input
Fair Value (Unobservable Input Reconciliation) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Net Derivatives (2) | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Balance, beginning of period | $ 36 | $ 2 |
Total realized/unrealized gains (losses) included in net income (loss) (5) (6) | (10) | 8 |
Total realized/unrealized gains (losses) included in AOCI | 4 | (1) |
Purchases (7) | 0 | (2) |
Sales (7) | 0 | 0 |
Issuances (7) | 0 | 0 |
Settlements (7) | 0 | 0 |
Transfers into Level 3 (8) | 0 | 0 |
Transfers out of Level 3 (8) | 0 | 1 |
Balance, end of period | 30 | 8 |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | (10) | 8 |
Changes in unrealized gains (losses) included in OCI | 4 | (1) |
Net Embedded Derivatives (3) | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Balance, beginning of period | (8,614) | (7,301) |
Total realized/unrealized gains (losses) included in net income (loss) (5) (6) | 1,379 | 665 |
Total realized/unrealized gains (losses) included in AOCI | 0 | 0 |
Purchases (7) | 0 | 0 |
Sales (7) | 0 | 0 |
Issuances (7) | 0 | 0 |
Settlements (7) | 75 | (138) |
Transfers into Level 3 (8) | 0 | 0 |
Transfers out of Level 3 (8) | 0 | 0 |
Balance, end of period | (7,160) | (6,774) |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 1,517 | 663 |
Changes in unrealized gains (losses) included in OCI | 0 | 0 |
Corporate (1) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, beginning of period | 1,399 | 684 |
Total realized/unrealized gains (losses) included in net income (loss) (5) (6) | 0 | (1) |
Total realized/unrealized gains (losses) included in AOCI | (99) | (22) |
Purchases (7) | 422 | 118 |
Sales (7) | (93) | (4) |
Issuances (7) | 0 | 0 |
Settlements (7) | 0 | 0 |
Transfers into Level 3 (8) | 86 | 4 |
Transfers out of Level 3 (8) | (97) | (112) |
Balance, end of period | 1,618 | 667 |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 0 | (1) |
Changes in unrealized gains (losses) included in OCI | (98) | (22) |
Structured Securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, beginning of period | 220 | 67 |
Total realized/unrealized gains (losses) included in net income (loss) (5) (6) | 0 | 0 |
Total realized/unrealized gains (losses) included in AOCI | (5) | 0 |
Purchases (7) | 87 | 80 |
Sales (7) | (2) | (3) |
Issuances (7) | 0 | 0 |
Settlements (7) | 0 | 0 |
Transfers into Level 3 (8) | 1 | 3 |
Transfers out of Level 3 (8) | (107) | (21) |
Balance, end of period | 194 | 126 |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 0 | 0 |
Changes in unrealized gains (losses) included in OCI | (5) | 0 |
Foreign government | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, beginning of period | 26 | 0 |
Total realized/unrealized gains (losses) included in net income (loss) (5) (6) | 0 | 0 |
Total realized/unrealized gains (losses) included in AOCI | (3) | 0 |
Purchases (7) | 0 | 0 |
Sales (7) | 0 | 0 |
Issuances (7) | 0 | 0 |
Settlements (7) | 0 | 0 |
Transfers into Level 3 (8) | 0 | 0 |
Transfers out of Level 3 (8) | 0 | 0 |
Balance, end of period | 23 | 0 |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 0 | 0 |
Changes in unrealized gains (losses) included in OCI | (3) | 0 |
Equity Securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, beginning of period | 13 | 3 |
Total realized/unrealized gains (losses) included in net income (loss) (5) (6) | 0 | 0 |
Total realized/unrealized gains (losses) included in AOCI | 0 | 0 |
Purchases (7) | 0 | 0 |
Sales (7) | 0 | 0 |
Issuances (7) | 0 | 0 |
Settlements (7) | 0 | 0 |
Transfers into Level 3 (8) | 0 | 0 |
Transfers out of Level 3 (8) | 0 | 0 |
Balance, end of period | 13 | 3 |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 0 | 0 |
Changes in unrealized gains (losses) included in OCI | 0 | 0 |
Short-term Investments | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, beginning of period | 2 | 0 |
Total realized/unrealized gains (losses) included in net income (loss) (5) (6) | 0 | 0 |
Total realized/unrealized gains (losses) included in AOCI | 0 | 0 |
Purchases (7) | 0 | 0 |
Sales (7) | (2) | 0 |
Issuances (7) | 0 | 0 |
Settlements (7) | 0 | 0 |
Transfers into Level 3 (8) | 0 | 0 |
Transfers out of Level 3 (8) | 0 | 0 |
Balance, end of period | 0 | 0 |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 0 | 0 |
Changes in unrealized gains (losses) included in OCI | 0 | 0 |
Separate Account Assets (4) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, beginning of period | 0 | 3 |
Total realized/unrealized gains (losses) included in net income (loss) (5) (6) | 0 | 0 |
Total realized/unrealized gains (losses) included in AOCI | 0 | 0 |
Purchases (7) | 0 | 0 |
Sales (7) | 0 | (1) |
Issuances (7) | 0 | 0 |
Settlements (7) | 0 | 0 |
Transfers into Level 3 (8) | 0 | 0 |
Transfers out of Level 3 (8) | 0 | 0 |
Balance, end of period | 0 | 2 |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 0 | 0 |
Changes in unrealized gains (losses) included in OCI | $ 0 | $ 0 |
Fair Value (Financial Instrumen
Fair Value (Financial Instruments Carried at Other Than Fair Value) (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Policy loans | $ 876 | $ 869 |
Liabilities | ||
Separate account liabilities | 96,995 | 106,225 |
Carrying Value | ||
Assets | ||
Mortgage loans | 21,295 | 19,787 |
Policy loans | 876 | 869 |
Other invested assets | 104 | 85 |
Premiums, reinsurance and other receivables | 3,080 | 3,075 |
Liabilities | ||
Policyholder account balances | 24,881 | 23,507 |
Long-term debt | 840 | 841 |
Other liabilities | 1,089 | 886 |
Separate account liabilities | 1,304 | 1,437 |
Estimated Fair Value | ||
Assets | ||
Mortgage loans | 21,083 | 20,591 |
Policy loans | 983 | 1,038 |
Other invested assets | 104 | 85 |
Premiums, reinsurance and other receivables | 3,550 | 3,603 |
Liabilities | ||
Policyholder account balances | 24,366 | 23,487 |
Long-term debt | 936 | 1,123 |
Other liabilities | 1,089 | 876 |
Separate account liabilities | 1,304 | 1,437 |
Estimated Fair Value | Level 1 | ||
Assets | ||
Mortgage loans | 0 | 0 |
Policy loans | 0 | 0 |
Other invested assets | 0 | 0 |
Premiums, reinsurance and other receivables | 0 | 0 |
Liabilities | ||
Policyholder account balances | 0 | 0 |
Long-term debt | 0 | 0 |
Other liabilities | 0 | 0 |
Separate account liabilities | 0 | 0 |
Estimated Fair Value | Level 2 | ||
Assets | ||
Mortgage loans | 0 | 0 |
Policy loans | 477 | 470 |
Other invested assets | 89 | 70 |
Premiums, reinsurance and other receivables | 31 | 20 |
Liabilities | ||
Policyholder account balances | 0 | 0 |
Long-term debt | 33 | 36 |
Other liabilities | 269 | 60 |
Separate account liabilities | 1,304 | 1,437 |
Estimated Fair Value | Level 3 | ||
Assets | ||
Mortgage loans | 21,083 | 20,591 |
Policy loans | 506 | 568 |
Other invested assets | 15 | 15 |
Premiums, reinsurance and other receivables | 3,519 | 3,583 |
Liabilities | ||
Policyholder account balances | 24,366 | 23,487 |
Long-term debt | 903 | 1,087 |
Other liabilities | 820 | 816 |
Separate account liabilities | $ 0 | $ 0 |
Equity (Components of Accumulat
Equity (Components of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance, beginning of period | $ 3,901 | $ 5,421 |
OCI before reclassifications | (4,583) | (2,812) |
Deferred income tax benefit (expense) (2) | 962 | 591 |
AOCI before reclassifications, net of income tax | 280 | 3,200 |
Amounts reclassified from AOCI | 39 | (19) |
Deferred income tax benefit (expense) (2) | (8) | 4 |
Amounts reclassified from AOCI, net of income tax | 31 | (15) |
Balance, end of period | 311 | 3,185 |
Unrealized Investment Gains (Losses), Net of Related Offsets (1) | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance, beginning of period | 3,675 | 5,321 |
OCI before reclassifications | (4,595) | (2,737) |
Deferred income tax benefit (expense) (2) | 965 | 575 |
AOCI before reclassifications, net of income tax | 45 | 3,159 |
Amounts reclassified from AOCI | 41 | (12) |
Deferred income tax benefit (expense) (2) | (9) | 3 |
Amounts reclassified from AOCI, net of income tax | 32 | (9) |
Balance, end of period | 77 | 3,150 |
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance, beginning of period | 233 | 108 |
OCI before reclassifications | 20 | (67) |
Deferred income tax benefit (expense) (2) | (4) | 14 |
AOCI before reclassifications, net of income tax | 249 | 55 |
Amounts reclassified from AOCI | (2) | (7) |
Deferred income tax benefit (expense) (2) | 1 | 1 |
Amounts reclassified from AOCI, net of income tax | (1) | (6) |
Balance, end of period | 248 | 49 |
Foreign Currency Translation Adjustments | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance, beginning of period | (7) | (8) |
OCI before reclassifications | (8) | (8) |
Deferred income tax benefit (expense) (2) | 1 | 2 |
AOCI before reclassifications, net of income tax | (14) | (14) |
Amounts reclassified from AOCI | 0 | 0 |
Deferred income tax benefit (expense) (2) | 0 | 0 |
Amounts reclassified from AOCI, net of income tax | 0 | 0 |
Balance, end of period | $ (14) | $ (14) |
Equity (Reclassifications Out o
Equity (Reclassifications Out of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net investment gains (losses) | $ (67) | $ 12 |
Net investment income | 1,135 | 1,169 |
Net derivative gains (losses) | 555 | (1,387) |
Pre-tax adjusted earnings | 843 | (594) |
Income tax (expense) benefit | (172) | 141 |
Net income (loss) | 671 | (453) |
Reclassification out of Accumulated Other Comprehensive Income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net income (loss) | (31) | 15 |
Reclassification out of Accumulated Other Comprehensive Income | Net unrealized investment gains (losses): | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net investment gains (losses) | (39) | 15 |
Net derivative gains (losses) | (2) | (3) |
Pre-tax adjusted earnings | (41) | 12 |
Income tax (expense) benefit | 9 | (3) |
Net income (loss) | (32) | 9 |
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Pre-tax adjusted earnings | 2 | 7 |
Income tax (expense) benefit | (1) | (1) |
Net income (loss) | 1 | 6 |
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | Interest rate swaps | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net investment income | 1 | 1 |
Net derivative gains (losses) | 1 | 1 |
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | Foreign currency swaps | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net derivative gains (losses) | $ 0 | $ 5 |
Other Revenues and Other Expe_3
Other Revenues and Other Expenses (Other Expenses) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Other Income and Expenses [Abstract] | ||
Compensation | $ 81 | $ 85 |
Contracted services and other labor costs | 50 | 53 |
Transition services agreements | 26 | 30 |
Establishment costs | 14 | 16 |
Premium and other taxes, licenses and fees | 12 | 13 |
Volume related costs, excluding compensation, net of DAC capitalization | 137 | 158 |
Interest expense on debt | 17 | 17 |
Other | 49 | 52 |
Total other expenses | $ 386 | $ 424 |
Other Revenues and Other Expe_4
Other Revenues and Other Expenses (Other Revenues - Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Distribution service | ||
Revenue from Contract with Customer, Including Assessed Tax | $ 61 | $ 65 |
Contingencies, Commitments an_2
Contingencies, Commitments and Guarantees (Contingencies, Commitments and Guarantees - Narrative) (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Cumulative maximum indemnities and guarantees contractual limitation | $ 118 | |
Liabilities for indemnities, guarantees and commitments | 1 | $ 1 |
Minimum | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Indemnities And Guarantees Contractual Limitation Range | 6 | |
Minimum | Non-litigation loss | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Loss Contingency, Range of Possible Loss, Portion Not Accrued | 0 | |
Maximum | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Loss Contingency, Range of Possible Loss, Portion Not Accrued | 10 | |
Indemnities And Guarantees Contractual Limitation Range | 112 | |
Maximum | Non-litigation loss | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Loss Contingency, Range of Possible Loss, Portion Not Accrued | 250 | |
Mortgage Loan Commitments | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability | 651 | 719 |
Commitments to Fund Partnership Investments and Private Corporate Bond Investments | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability | $ 2,300 | $ 2,300 |
Related Party Transactions (Eff
Related Party Transactions (Effects of Affiliated Reinsurance on Statements of Operations) (Details) - Affiliated Entity - Assumed - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Premiums: | ||
Reinsurance assumed | $ 0 | $ 2 |
Universal life and investment-type product policy fees: | ||
Reinsurance assumed | 1 | 2 |
Other revenues: | ||
Reinsurance assumed | 0 | 1 |
Policyholder benefits and claims: | ||
Reinsurance assumed | 7 | 7 |
Other Expenses | ||
Reinsurance assumed | $ (7) | $ (4) |
Related Party Transactions (E_2
Related Party Transactions (Effects of Affiliated Reinsurance on Balance Sheets) (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Assets: | ||
Premiums, reinsurance and other receivables (net of allowance for credit losses) | $ 15,834 | $ 15,649 |
Liabilities: | ||
Policyholder account balances | 67,182 | 66,195 |
Other liabilities | 4,123 | 3,850 |
Affiliated Entity | Assumed | ||
Assets: | ||
Premiums, reinsurance and other receivables (net of allowance for credit losses) | 27 | 26 |
Liabilities: | ||
Future policy benefits | 120 | 119 |
Policyholder account balances | 350 | 427 |
Other policy-related balances | 10 | 9 |
Other liabilities | $ 23 | $ 26 |
Related Party Transactions (Rel
Related Party Transactions (Related Party Reinsurance Transactions - Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Embedded Derivative, Fair Value of Embedded Derivative Liability | $ 7,311 | $ 8,800 | |
Affiliated Entity | Assumed guaranteed minimum benefits | |||
Embedded Derivative, Fair Value of Embedded Derivative Liability | 350 | $ 427 | |
Embedded Derivatives Gains (Losses) | $ 77 | $ 176 |
Related Party Transactions (Sha
Related Party Transactions (Shared Service and Overhead Allocations - Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Insurance Commissions and Fees | $ 683 | $ 743 | |
Related Party Transaction, Selling, General and Administrative Expenses from Transactions with Related Party | 223 | 228 | |
Affiliated Entity | |||
Insurance Commissions and Fees | 54 | $ 57 | |
All Services and Transactions Except Broker Dealer Activities [Member] | |||
Due from (to) Related Parties | $ (145) | $ (182) |
Related Party Transactions (Bro
Related Party Transactions (Broker Dealer - Narrative) (Details) - Broker Dealer Activities [Member] - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Revenue from Related Parties | $ 52 | $ 55 | |
Related Party Transaction, Expenses from Transactions with Related Party | 230 | $ 236 | |
Due from Related Parties | $ 17 | $ 19 |