Document and Entity Information
Document and Entity Information - USD ($) | 6 Months Ended | |
Jun. 30, 2016 | Aug. 11, 2016 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | MetLife Insurance Co USA | |
Entity Central Index Key | 733,076 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2016 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Public Float | $ 0 | |
Entity Common Stock, Shares Outstanding | 3,000 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Investments: | ||
Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $58,297 and $50,154, respectively) | $ 64,043 | $ 52,409 |
Equity securities available-for-sale, at estimated fair value (cost: $362 and $384, respectively) | 390 | 409 |
Mortgage loans (net of valuation allowances of $41 and $36, respectively; includes $159 and $172, respectively, at estimated fair value, relating to variable interest entities) | 8,179 | 7,262 |
Policy loans | 1,190 | 1,266 |
Real estate and real estate joint ventures (includes $5 and $5 respectively, of real estate held-for-sale) | 498 | 628 |
Other limited partnership interests | 1,757 | 1,846 |
Short-term investments, principally at estimated fair value | 2,648 | 1,737 |
Other invested assets, principally at estimated fair value | 7,224 | 4,942 |
Total investments | 85,929 | 70,499 |
Cash and cash equivalents, principally at estimated fair value | 2,298 | 1,383 |
Accrued investment income (includes $1 and $1, respectively, relating to variable interest entities) | 536 | 505 |
Premiums, reinsurance and other receivables | 18,878 | 22,251 |
Deferred policy acquisition costs and value of business acquired | 5,047 | 4,809 |
Current income tax recoverable | 90 | 0 |
Goodwill | 381 | 381 |
Other assets | 658 | 799 |
Separate account assets | 101,020 | 101,735 |
Total assets | 214,837 | 202,362 |
Liabilities | ||
Future policy benefits | 33,083 | 29,894 |
Policyholder account balances | 38,611 | 35,661 |
Other policy-related balances | 3,529 | 3,549 |
Payables for collateral under securities loaned and other transactions | 13,669 | 10,619 |
Long-term debt (includes $35 and $48, respectively, at estimated fair value, relating to variable interest entities) | 817 | 836 |
Current income tax payable | 0 | 20 |
Deferred income tax liability | 441 | 803 |
Other liabilities (includes $1 and $1, respectively, relating to variable interest entities) | 10,905 | 7,682 |
Separate account liabilities | 101,020 | 101,735 |
Total liabilities | 202,075 | 190,799 |
Contingencies, Commitments and Guarantees (Note 9) | ||
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 | 12,413 | 10,871 |
Retained earnings (deficit) | (2,407) | (1,011) |
Accumulated other comprehensive income (loss) | 2,681 | 1,628 |
Total stockholder's equity | 12,762 | 11,563 |
Total liabilities and stockholder's equity | $ 214,837 | $ 202,362 |
Consolidated Balance Sheets (U3
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Assets | ||
Amortized cost of fixed maturity securities available-for-sale | $ 58,297 | $ 50,154 |
Cost of equity securities available-for-sale | 362 | 384 |
Mortgage loans valuation allowances | 41 | 36 |
Mortgage loans, at estimated fair value, relating to variable interest entities | 8,179 | 7,262 |
Real estate held-for-sale | 5 | 5 |
Accrued investment income relating to variable interest entities | 536 | 505 |
Liabilities | ||
Long-term debt, at estimated fair value, relating to variable interest entities | 817 | 836 |
Other liabilities relating to variable interest entities | $ 10,905 | $ 7,682 |
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 |
Variable interest entities | ||
Assets | ||
Mortgage loans, at estimated fair value, relating to variable interest entities | $ 159 | $ 172 |
Accrued investment income relating to variable interest entities | 1 | 1 |
Liabilities | ||
Long-term debt, at estimated fair value, relating to variable interest entities | 35 | 48 |
Other liabilities relating to variable interest entities | $ 1 | $ 1 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Revenues | ||||
Premiums | $ 202 | $ 253 | $ 511 | $ 536 |
Universal life and investment-type product policy fees | 678 | 711 | 1,322 | 1,429 |
Net investment income | 678 | 689 | 1,305 | 1,324 |
Other revenues | 397 | 130 | 506 | 250 |
Net investment gains (losses): | ||||
Other-than-temporary impairments on fixed maturity securities | 0 | 0 | (15) | (2) |
Other-than-temporary impairments on fixed maturity securities transferred to other comprehensive income (loss) | 0 | 0 | 0 | (1) |
Other net investment gains (losses) | 15 | (5) | (18) | 40 |
Total net investment gains (losses) | 15 | (5) | (33) | 37 |
Net derivative gains (losses) | (3,230) | (17) | (3,235) | 68 |
Total revenues | (1,260) | 1,761 | 376 | 3,644 |
Expenses | ||||
Policyholder benefits and claims | 813 | 582 | 1,394 | 1,174 |
Interest credited to policyholder account balances | 239 | 262 | 477 | 519 |
Other expenses | 131 | 445 | 756 | 1,092 |
Total expenses | 1,183 | 1,289 | 2,627 | 2,785 |
Income (loss) before provision for income tax | (2,443) | 472 | (2,251) | 859 |
Provision for income tax expense (benefit) | (886) | 132 | (855) | 235 |
Net income (loss) | (1,557) | 340 | (1,396) | 624 |
Comprehensive income (loss) | $ (1,464) | $ (708) | $ (343) | $ (130) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Millions | Total | Common Stock | Additional Paid-in Capital | Retained Earnings (Deficit) | Accumulated Other Comprehensive Income (Loss) |
Beginning Balance at Dec. 31, 2014 | $ 12,006 | $ 75 | $ 10,855 | $ (1,350) | $ 2,426 |
Capital contributions from MetLife, Inc. | 2 | 2 | |||
Dividends paid to MetLife, Inc. | (500) | (500) | |||
Net income (loss) | 624 | 624 | |||
Other comprehensive income (loss), net of income tax | (754) | (754) | |||
Ending Balance at Jun. 30, 2015 | 11,378 | 75 | 10,857 | (1,226) | 1,672 |
Beginning Balance at Dec. 31, 2015 | 11,563 | 75 | 10,871 | (1,011) | 1,628 |
Capital contributions from MetLife, Inc. | 1,542 | 1,542 | |||
Dividends paid to MetLife, Inc. | 0 | 0 | |||
Net income (loss) | (1,396) | (1,396) | |||
Other comprehensive income (loss), net of income tax | 1,053 | 1,053 | |||
Ending Balance at Jun. 30, 2016 | $ 12,762 | $ 75 | $ 12,413 | $ (2,407) | $ 2,681 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Statement of Cash Flows [Abstract] | ||
Net cash provided by (used in) operating activities | $ 2,085 | $ 1,598 |
Cash flows from investing activities | ||
Sales, maturities and repayments of fixed maturity securities | 16,782 | 18,511 |
Sales, maturities and repayments of equity securities | 80 | 19 |
Sales, maturities and repayments of mortgage loans | 488 | 314 |
Sales, maturities and repayments of real estate and real estate joint ventures | 154 | 190 |
Sales, maturities and repayments of other limited partnership interests | 152 | 80 |
Purchases of fixed maturity securities | (19,513) | (19,269) |
Purchases of equity securities | (56) | (47) |
Purchases of mortgage loans | (1,016) | (1,261) |
Purchases of real estate and real estate joint ventures | (35) | (43) |
Purchases of other limited partnership interests | (89) | (110) |
Cash received in connection with freestanding derivatives | 401 | 97 |
Cash paid in connection with freestanding derivatives | (625) | (521) |
Cash received under repurchase agreements (Note 4) | 0 | 199 |
Cash paid under reverse repurchase agreements (Note 4) | 0 | (199) |
Net change in policy loans | 12 | 12 |
Net change in short-term investments | (817) | (1,349) |
Net change in other invested assets | (7) | 49 |
Net cash provided by (used in) investing activities | (4,089) | (3,328) |
Cash flows from financing activities | ||
Policyholder account balances: Deposits | 6,166 | 8,401 |
Policyholder account balances: Withdrawals | (7,700) | (9,154) |
Net change in payables for collateral under securities loaned and other transactions | 3,050 | 2,565 |
Long-term debt repaid | (13) | (18) |
Financing element on certain derivative instruments | (124) | (38) |
Dividends paid to MetLife, Inc. | 0 | (500) |
Capital contributions | 1,540 | 0 |
Net cash provided by (used in) financing activities | 2,919 | 1,256 |
Effect of change in foreign currency exchange rates on cash and cash equivalents balances | 0 | (1) |
Change in cash and cash equivalents | 915 | (475) |
Cash and cash equivalents, beginning of period | 1,383 | 1,206 |
Cash and cash equivalents, end of period | 2,298 | 731 |
Supplemental disclosures of cash flow information: | ||
Net cash paid for Interest | 36 | 36 |
Net cash paid (received) for Income tax | 191 | 82 |
Non-cash transactions: | ||
Capital contributions from MetLife, Inc. | 2 | 2 |
Transfer of fixed maturity securities from affiliates | 3,565 | 0 |
Transfer of mortgage loans from affiliates | 395 | 0 |
Transfer of short-term investments from affiliates | $ 94 | $ 0 |
Business, Basis of Presentation
Business, Basis of Presentation and Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2016 | |
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 “MetLife USA” and the “Company” refer to MetLife Insurance Company USA (formerly, MetLife Insurance Company of Connecticut), a Delaware corporation originally incorporated in Connecticut in 1863, and its subsidiaries. MetLife Insurance Company USA is a wholly-owned subsidiary of MetLife, Inc. (MetLife, Inc., together with its subsidiaries and affiliates, “MetLife”). The Company offers individual annuities, individual life insurance, and institutional protection and asset accumulation products and is organized into two segments: Retail and Corporate Benefit Funding. On January 12, 2016, MetLife, Inc. announced its plan to pursue the separation of a substantial portion of its Retail segment, which is organized into two U.S. businesses, Life & Other and Annuities, as well as certain portions of its Corporate Benefit Funding segment and Corporate & Other (the “Separation”). Additionally, on July 21, 2016, MetLife, Inc. announced that the separated business will be rebranded as “Brighthouse Financial” after the Separation. MetLife currently plans to include MetLife USA and certain affiliates in the proposed separated business. MetLife is currently evaluating structural alternatives for the proposed Separation, including a public offering of shares in an independent, publicly traded company, a spin-off, or a sale. The completion of a public offering would depend on, among other things, the U.S. Securities and Exchange Commission (“SEC”) filing and review process, as well as market conditions. A Separation, depending on the specific form, would be subject to the satisfaction of various conditions and approvals, including, among other things, approval of any transaction by the MetLife, Inc. Board of Directors, satisfaction of any applicable requirements of the SEC, and receipt of insurance and other regulatory approvals and other anticipated conditions. 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 estimates. Consolidation The accompanying interim condensed consolidated financial statements include the accounts of MetLife Insurance Company USA and its subsidiaries, as well as partnerships and joint ventures in which the Company has control, and variable interest entities (“VIEs”) for which the Company is the primary beneficiary. Intercompany accounts and transactions have been eliminated. The Company uses the equity method of accounting for equity securities when it has significant influence or at least 20% interest and for real estate joint ventures and other limited partnership interests (“investees”) when it has more than a minor ownership interest or more than a minor influence over the investee’s operations, but does not have a controlling financial interest. 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. The Company uses the cost method of accounting for investments in which it has virtually no influence over the investee’s operations. Reclassifications Certain amounts in the prior year periods’ interim condensed consolidated financial statements and related footnotes thereto have been reclassified to conform with the 2016 presentation as discussed throughout the Notes to the Interim Condensed Consolidated Financial Statements. Since the Company is a member of a controlled group of affiliated companies, its results may not be indicative of those of a stand-alone 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, 2015 consolidated balance sheet data was derived from audited consolidated financial statements included in MetLife Insurance Company USA’s Annual Report on Form 10-K for the year ended December 31, 2015 (the “2015 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 2015 Annual Report. Adoption of New Accounting Pronouncement Effective January 1, 2016, the Company retrospectively adopted new guidance relating to the consolidation of certain entities. The objective of the new standard is to improve targeted areas of the consolidation guidance and to reduce the number of consolidation models. The new consolidation standard provides guidance on how a reporting entity (i) evaluates whether the entity should consolidate limited partnerships and similar entities, (ii) assesses whether the fees paid to a decision maker or service provider are variable interests in a VIE, and (iii) assesses the variable interests in a VIE held by related parties of the reporting entity. The new guidance also eliminates the VIE consolidation model based on majority exposure to variability that applied to certain investment companies and similar entities. The adoption of the new guidance did not impact which entities are consolidated by the Company. The consolidated VIE assets and liabilities and unconsolidated VIE carrying amounts and maximum exposure to loss as of June 30, 2016, disclosed in Note 4, reflect the application of the new guidance. Future Adoption of New Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued new guidance on measurement of credit losses on financial instruments (Accounting Standards Update (“ASU”) 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments) . The new guidance is effective for fiscal years and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. This ASU replaces the incurred loss impairment methodology with one that reflects expected credit losses. The measurement of expected credit losses should be based on historical loss information, current conditions, and reasonable and supportable forecasts. The guidance also requires enhanced disclosures. The Company is currently evaluating the impact of this guidance on its consolidated financial statements. In January 2016, the FASB issued new guidance (ASU 2016-01, Financial Instruments-Overall: Recognition and Measurement of Financial Assets and Financial Liabilities) on the recognition and measurement of financial instruments. The new guidance is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted for the instrument-specific credit risk provision. The new guidance changes the current accounting guidance related to (i) the classification and measurement of certain equity investments, (ii) the presentation of changes in the fair value of financial liabilities measured under the fair value option (“FVO”) that are due to instrument-specific credit risk, and (iii) certain disclosures associated with the fair value of financial instruments. The Company is currently evaluating the impact of this guidance on its consolidated financial statements. In May 2015, the FASB issued new guidance on short-duration insurance contracts (ASU 2015-09, Financial Services - Insurance (Topic 944): Disclosures about Short-Duration Contracts ). The amendments in this new guidance are effective for annual periods beginning after December 15, 2015, and interim periods within annual periods beginning after December 15, 2016. The new guidance should be applied retrospectively by providing comparative disclosures for each period presented, except for those requirements that apply only to the current period. The new guidance requires insurance entities to provide users of financial statements with more transparent information about initial claim estimates and subsequent adjustments to these estimates, including information on: (i) reconciling from the claim development table to the balance sheet liability, (ii) methodologies and judgments in estimating claims, and (iii) the timing, and frequency of claims. The adoption will not have an impact on the Company’s consolidated financial statements other than expanded disclosures in Note 3 . In May 2014, the FASB issued a comprehensive new revenue recognition standard (ASU 2014-09, Revenue from Contracts with Customers (Topic 606) ), effective for fiscal years beginning after December 15, 2016 and interim periods within those years and should be applied retrospectively. In August 2015, the FASB amended the guidance to defer the effective date by one year, effective for the fiscal years beginning after December 15, 2017, including interim periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The new guidance will supersede nearly all existing revenue recognition guidance under GAAP; however, it will not impact the accounting for insurance contracts, leases, financial instruments and guarantees. For those contracts that are impacted by the new guidance, the guidance will require an entity to recognize revenue upon the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled, in exchange for those goods or services. The Company is currently evaluating the impact of this guidance on its consolidated financial statements. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | 2. Segment Information The Company is organized into two segments: Retail and Corporate Benefit Funding. In addition, the Company reports certain of its results of operations in Corporate & Other. Retail The Retail segment offers a broad range of protection products and a variety of annuities primarily to individuals, and is organized into two U.S. businesses: Annuities and Life & Other. Annuities includes a variety of variable, fixed and indexed annuities which provide for both asset accumulation and asset distribution needs. Life & Other insurance products and services include variable life, universal life, term life and whole life products, as well as individual disability income products. Additionally, through broker-dealer affiliates, the Company offers a full range of mutual funds and other securities products. Corporate Benefit Funding The Corporate Benefit Funding segment offers a broad range of annuity and investment products, including guaranteed interest contracts and other stable value products, income annuities and separate account contracts for the investment management of defined benefit and defined contribution plan assets. This segment also includes structured settlements and certain products to fund company-, bank- or trust-owned life insurance used to finance nonqualified benefit programs for executives. Corporate & Other Corporate & Other contains the excess capital and run-off businesses, not allocated to the segments, the Company’s ancillary international operations, ancillary U.S. direct business sold direct to consumer, and interest expense related to the majority of the Company’s outstanding debt, as well as expenses associated with certain legal proceedings and income tax audit issues. Corporate & Other also includes the elimination of intersegment amounts. Financial Measures and Segment Accounting Policies Operating earnings is the measure of segment profit or loss the Company uses to evaluate segment performance and allocate resources. Consistent with GAAP guidance for segment reporting, operating earnings is the Company’s measure of segment performance and is reported below. Operating earnings should not be viewed as a substitute for net income (loss). The Company believes the presentation of operating earnings as the Company measures it for management purposes enhances the understanding of its performance by highlighting the results of operations and the underlying profitability drivers of the business. Operating earnings is defined as operating revenues less operating expenses, both net of income tax. Operating revenues and operating expenses exclude results of discontinued operations and other businesses that have been or will be sold or exited by MetLife and are referred to as divested businesses. Operating revenues also excludes net investment gains (losses) and net derivative gains (losses). Operating expenses also excludes goodwill impairments. The following additional adjustments are made to revenues, in the line items indicated, in calculating operating revenues: • Universal life and investment-type product policy fees excludes the amortization of unearned revenue related to net investment gains (losses) and net derivative gains (losses) and certain variable annuity guaranteed minimum income benefits (“GMIBs”) fees (“GMIB Fees”); and • Net investment income: (i) includes investment hedge adjustments which represent earned income on derivatives 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, (ii) includes income from discontinued real estate operations, (iii) excludes post-tax operating earnings adjustments relating to insurance joint ventures accounted for under the equity method and (iv) excludes certain amounts related to securitization entities that are VIEs consolidated under GAAP. The following additional adjustments are made to expenses, in the line items indicated, in calculating operating expenses: • Policyholder benefits and claims excludes: (i) amounts associated with periodic crediting rate adjustments based on the total return of a contractually referenced pool of assets, (ii) benefits and hedging costs related to GMIBs (“GMIB Costs”) and (iii) market value adjustments associated with surrenders or terminations of contracts (“Market Value Adjustments”); • Interest credited to policyholder account balances includes adjustments for earned income on derivatives and amortization of premium on derivatives that are hedges of policyholder account balances but do not qualify for hedge accounting treatment; • Amortization of deferred policy acquisition costs (“DAC”) and value of business acquired (“VOBA”) excludes amounts related to: (i) net investment gains (losses) and net derivative gains (losses), (ii) GMIB Fees and GMIB Costs and (iii) Market Value Adjustments; • Interest expense on debt excludes certain amounts related to securitization entities that are VIEs consolidated under GAAP; and • Other expenses excludes costs related to: (i) implementation of new insurance regulatory requirements and (ii) acquisition and integration costs. Set forth in the tables below is certain financial information with respect to the Company’s segments, as well as Corporate & Other, for the three months and six months ended June 30, 2016 and 2015 . The segment accounting policies are the same as those used to prepare the Company’s consolidated financial statements, except for operating earnings adjustments as defined above. In addition, segment accounting policies include the method of capital allocation described below. Economic capital is an internally developed risk capital model, the purpose of which is to measure the risk in the business and to provide a basis upon which capital is deployed. The economic capital model accounts for the unique and specific nature of the risks inherent in MetLife’s and the Company’s business. MetLife’s economic capital model, coupled with considerations of local capital requirements, aligns segment allocated equity with emerging standards and consistent risk principles. The model applies statistics-based risk evaluation principles to the material risks to which the Company is exposed. These consistent risk principles include calibrating required economic capital shock factors to a specific confidence level and time horizon while applying an industry standard method for the inclusion of diversification benefits among risk types. MetLife’s management is responsible for the ongoing production and enhancement of the economic capital model and reviews its approach periodically to ensure that it remains consistent with emerging industry practice standards. Segment net investment income is credited or charged based on the level of allocated equity; however, changes in allocated equity do not impact the Company’s consolidated net investment income, operating earnings or net income (loss). Net investment income is based upon the actual results of each segment’s specifically identifiable investment portfolios adjusted for allocated equity. Other costs are allocated to each of the segments based upon: (i) a review of the nature of such costs; (ii) time studies analyzing the amount of employee compensation costs incurred by each segment; and (iii) cost estimates included in the Company’s product pricing. Operating Results Three Months Ended June 30, 2016 Retail Corporate Benefit Funding Corporate & Other Total Adjustments Total Consolidated (In millions) Revenues Premiums $ 196 $ 2 $ 4 $ 202 $ — $ 202 Universal life and investment-type product policy fees 598 10 — 608 70 678 Net investment income 557 186 (2 ) 741 (63 ) 678 Other revenues 396 1 — 397 — 397 Net investment gains (losses) — — — — 15 15 Net derivative gains (losses) — — — — (3,230 ) (3,230 ) Total revenues 1,747 199 2 1,948 (3,208 ) (1,260 ) Expenses Policyholder benefits and claims 564 104 10 678 135 813 Interest credited to policyholder account balances 215 23 — 238 1 239 Capitalization of DAC (55 ) — (13 ) (68 ) — (68 ) Amortization of DAC and VOBA 372 — 5 377 (659 ) (282 ) Interest expense on debt — — 17 17 2 19 Other expenses 418 6 27 451 11 462 Total expenses 1,514 133 46 1,693 (510 ) 1,183 Provision for income tax expense (benefit) 47 23 (17 ) 53 (939 ) (886 ) Operating earnings $ 186 $ 43 $ (27 ) 202 Adjustments to: Total revenues (3,208 ) Total expenses 510 Provision for income tax (expense) benefit 939 Net income (loss) $ (1,557 ) $ (1,557 ) Operating Results Three Months Ended June 30, 2015 Retail Corporate Benefit Funding Corporate & Other Total Adjustments Total Consolidated (In millions) Revenues Premiums $ 223 $ 3 $ 27 $ 253 $ — $ 253 Universal life and investment-type product policy fees 636 8 — 644 67 711 Net investment income 523 231 (11 ) 743 (54 ) 689 Other revenues 128 1 1 130 — 130 Net investment gains (losses) — — — — (5 ) (5 ) Net derivative gains (losses) — — — — (17 ) (17 ) Total revenues 1,510 243 17 1,770 (9 ) 1,761 Expenses Policyholder benefits and claims 349 109 21 479 103 582 Interest credited to policyholder account balances 233 28 — 261 1 262 Capitalization of DAC (70 ) — (16 ) (86 ) — (86 ) Amortization of DAC and VOBA 159 — 5 164 (107 ) 57 Interest expense on debt — — 17 17 1 18 Other expenses 418 4 34 456 — 456 Total expenses 1,089 141 61 1,291 (2 ) 1,289 Provision for income tax expense (benefit) 119 35 (20 ) 134 (2 ) 132 Operating earnings $ 302 $ 67 $ (24 ) 345 Adjustments to: Total revenues (9 ) Total expenses 2 Provision for income tax (expense) benefit 2 Net income (loss) $ 340 $ 340 Operating Results Six Months Ended June 30, 2016 Retail Corporate Benefit Funding Corporate & Other Total Adjustments Total Consolidated (In millions) Revenues Premiums $ 414 $ 14 $ 83 $ 511 $ — $ 511 Universal life and investment-type product policy fees 1,161 25 — 1,186 136 1,322 Net investment income 1,068 376 (11 ) 1,433 (128 ) 1,305 Other revenues 504 2 — 506 — 506 Net investment gains (losses) — — — — (33 ) (33 ) Net derivative gains (losses) — — — — (3,235 ) (3,235 ) Total revenues 3,147 417 72 3,636 (3,260 ) 376 Expenses Policyholder benefits and claims 973 209 53 1,235 159 1,394 Interest credited to policyholder account balances 429 46 — 475 2 477 Capitalization of DAC (130 ) — (31 ) (161 ) — (161 ) Amortization of DAC and VOBA 486 — 12 498 (601 ) (103 ) Interest expense on debt — — 34 34 2 36 Other expenses 879 17 63 959 25 984 Total expenses 2,637 272 131 3,040 (413 ) 2,627 Provision for income tax expense (benefit) 117 50 (27 ) 140 (995 ) (855 ) Operating earnings $ 393 $ 95 $ (32 ) 456 Adjustments to: Total revenues (3,260 ) Total expenses 413 Provision for income tax (expense) benefit 995 Net income (loss) $ (1,396 ) $ (1,396 ) Operating Results Six Months Ended June 30, 2015 Retail Corporate Benefit Funding Corporate & Other Total Adjustments Total Consolidated (In millions) Revenues Premiums $ 494 $ 7 $ 35 $ 536 $ — $ 536 Universal life and investment-type product policy fees 1,279 17 — 1,296 133 1,429 Net investment income 1,027 449 (37 ) 1,439 (115 ) 1,324 Other revenues 246 2 2 250 — 250 Net investment gains (losses) — — — — 37 37 Net derivative gains (losses) — — — — 68 68 Total revenues 3,046 475 — 3,521 123 3,644 Expenses Policyholder benefits and claims 734 206 42 982 192 1,174 Interest credited to policyholder account balances 461 56 — 517 2 519 Capitalization of DAC (144 ) — (41 ) (185 ) — (185 ) Amortization of DAC and VOBA 323 — 12 335 (83 ) 252 Interest expense on debt — — 34 34 2 36 Other expenses 890 16 83 989 — 989 Total expenses 2,264 278 130 2,672 113 2,785 Provision for income tax expense (benefit) 217 68 (54 ) 231 4 235 Operating earnings $ 565 $ 129 $ (76 ) 618 Adjustments to: Total revenues 123 Total expenses (113 ) Provision for income tax (expense) benefit (4 ) Net income (loss) $ 624 $ 624 The following table presents total assets with respect to the Company’s segments, as well as Corporate & Other, at: June 30, 2016 December 31, 2015 (In millions) Retail $ 177,712 $ 167,142 Corporate Benefit Funding 23,591 25,043 Corporate & Other 13,534 10,177 Total $ 214,837 $ 202,362 |
Insurance
Insurance | 6 Months Ended |
Jun. 30, 2016 | |
Insurance [Abstract] | |
Insurance | 3. Insurance Guarantees As discussed in Notes 1 and 5 of the Notes to the Consolidated Financial Statements included in the 2015 Annual Report, the Company issues variable annuity products with guaranteed minimum benefits. Guaranteed minimum accumulation benefits (“GMABs”), the non-life contingent portion of guaranteed minimum withdrawal benefits (“GMWBs”) and the portion of certain GMIBs that do not require annuitization are accounted for as embedded derivatives in policyholder account balances and are further discussed in Note 5 . The Company also issues universal and variable life contracts where the Company contractually guarantees to the contractholder a secondary guarantee. Information regarding the Company’s guarantee exposure was as follows at: June 30, 2016 December 31, 2015 In the Event of Death At Annuitization In the Event of Death At Annuitization (Dollars in millions) Annuity Contracts (1), (2): Variable Annuity Guarantees: Total account value (3) $ 103,043 $ 58,197 $ 103,830 $ 58,615 Separate account value $ 98,022 $ 56,830 $ 98,897 $ 57,284 Net amount at risk $ 7,394 (4) $ 3,079 (5) $ 8,168 (4) $ 2,088 (5) Average attained age of contractholders 67 years 67 years 66 years 66 years June 30, 2016 December 31, 2015 Secondary Guarantees (Dollars in millions) Universal and Variable Life Contracts: Total account value (3) $ 7,011 $ 6,919 Net amount at risk (6) $ 90,534 $ 90,940 Average attained age of policyholders 60 years 59 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 7 of the Notes to the Consolidated Financial Statements included in the 2015 Annual Report for a discussion of certain living and death benefit guarantees which have been reinsured. (3) Includes the contractholder’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 contractholders 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 contractholders 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 | 6 Months Ended |
Jun. 30, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | 4. Investments Fixed Maturity and Equity Securities Available-for-Sale Fixed Maturity and Equity Securities Available-for-Sale by Sector The following table presents the fixed maturity and equity securities available-for-sale (“AFS”) by sector. Redeemable preferred stock is reported within U.S. corporate and foreign corporate fixed maturity securities and non-redeemable preferred stock is reported within equity securities. Included within fixed maturity securities are structured securities including residential mortgage-backed securities (“RMBS”), asset-backed securities (“ABS”) and commercial mortgage-backed securities (“CMBS”) (collectively, “Structured Securities”). June 30, 2016 December 31, 2015 Cost or Gross Unrealized Estimated Cost or Gross Unrealized Estimated Gains Temporary OTTI Gains Temporary OTTI (In millions) Fixed maturity securities: U.S. corporate $ 17,349 $ 1,798 $ 130 $ — $ 19,017 $ 16,160 $ 979 $ 393 $ — $ 16,746 U.S. government and agency 14,927 2,838 — — 17,765 12,562 1,297 53 — 13,806 RMBS 10,398 291 84 21 10,584 8,391 201 95 19 8,478 Foreign corporate 5,671 306 121 — 5,856 4,995 153 194 — 4,954 State and political subdivision 2,620 572 1 — 3,191 2,398 321 13 1 2,705 ABS 3,173 21 23 — 3,171 2,694 14 34 — 2,674 CMBS (1) 3,333 148 5 (1 ) 3,477 2,303 20 23 (1 ) 2,301 Foreign government 826 157 1 — 982 651 104 10 — 745 Total fixed maturity securities $ 58,297 $ 6,131 $ 365 $ 20 $ 64,043 $ 50,154 $ 3,089 $ 815 $ 19 $ 52,409 Equity securities: Non-redeemable preferred stock $ 201 $ 18 $ 13 $ — $ 206 $ 217 $ 16 $ 9 $ — $ 224 Common stock 161 23 — — 184 167 23 5 — 185 Total equity securities $ 362 $ 41 $ 13 $ — $ 390 $ 384 $ 39 $ 14 $ — $ 409 __________________ (1) The noncredit loss component of other-than-temporary impairment (“OTTI”) losses for CMBS was in an unrealized gain position of $1 million at both June 30, 2016 and December 31, 2015 , due to increases in estimated fair value subsequent to initial recognition of noncredit losses on such securities. See also “— Net Unrealized Investment Gains (Losses).” The Company held non-income producing fixed maturity securities with an estimated fair value of $42 million and $11 million with unrealized gains (losses) of $5 million and $1 million at June 30, 2016 and December 31, 2015 , 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 June 30, 2016 : Due in One Year or Less Due After One Year Through Five Years Due After Five Years Through Ten Years Due After Ten Years Structured Securities Total Fixed Maturity Securities (In millions) Amortized cost $ 1,898 $ 12,214 $ 9,467 $ 17,814 $ 16,904 $ 58,297 Estimated fair value $ 1,912 $ 12,737 $ 9,971 $ 22,191 $ 17,232 $ 64,043 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 and Equity Securities AFS by Sector The following table presents the estimated fair value and gross unrealized losses of fixed maturity and equity securities AFS in an unrealized loss position, aggregated by sector and by length of time that the securities have been in a continuous unrealized loss position. June 30, 2016 December 31, 2015 Less than 12 Months Equal to or Greater than 12 Months Less than 12 Months Equal to or Greater than 12 Months Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses (Dollars in millions) Fixed maturity securities: U.S. corporate $ 906 $ 27 $ 1,005 $ 103 $ 4,569 $ 278 $ 571 $ 115 U.S. government and agency 50 — — — 4,037 53 — — RMBS 1,318 48 842 57 4,305 73 495 41 Foreign corporate 687 27 712 94 1,650 96 605 98 State and political subdivision 47 1 6 — 373 12 19 2 ABS 1,017 11 703 12 1,818 28 194 6 CMBS 150 1 179 3 1,346 21 44 1 Foreign government 6 — 12 1 130 9 6 1 Total fixed maturity securities $ 4,181 $ 115 $ 3,459 $ 270 $ 18,228 $ 570 $ 1,934 $ 264 Equity securities: Non-redeemable preferred stock $ 19 $ 2 $ 40 $ 11 $ 25 $ 1 $ 40 $ 8 Common stock 2 — 1 — 6 5 1 — Total equity securities $ 21 $ 2 $ 41 $ 11 $ 31 $ 6 $ 41 $ 8 Total number of securities in an unrealized loss position 751 592 1,850 394 Evaluation of AFS Securities for OTTI and Evaluating Temporarily Impaired AFS Securities As described more fully in Notes 1 and 8 of the Notes to the Consolidated Financial Statements included in the 2015 Annual Report, the Company performs a regular evaluation of all investment classes for impairment, including fixed maturity securities, equity securities and perpetual hybrid securities, in accordance with its impairment policy, in order to evaluate whether such investments are other-than-temporarily impaired. Current Period Evaluation Based on the Company’s current evaluation of its AFS securities in an unrealized loss position in accordance with its impairment policy, and the Company’s current intentions and assessments (as applicable to the type of security) about holding, selling and any requirements to sell these securities, the Company concluded that these securities were not other-than-temporarily impaired at June 30, 2016 . Future OTTI will depend primarily on economic fundamentals, issuer performance (including changes in the present value of future cash flows expected to be collected), changes in credit ratings, collateral valuation, interest rates and credit spreads. If economic fundamentals deteriorate or if there are adverse changes in the above factors, OTTI may be incurred in upcoming periods. Gross unrealized losses on fixed maturity securities decreased $449 million during the six months ended June 30, 2016 to $385 million . The decrease in gross unrealized losses for the six months ended June 30, 2016 was primarily attributable to a decrease in interest rates and, to a lesser extent, narrowing credit spreads and the impact of strengthening foreign currencies on non-functional currency denominated fixed maturity securities. At June 30, 2016 , $84 million of the total $385 million of gross unrealized losses were from 34 fixed maturity securities with an unrealized loss position of 20% or more of amortized cost for six months or greater. Investment Grade Fixed Maturity Securities Of the $84 million of gross unrealized losses on fixed maturity securities with an unrealized loss of 20% or more of amortized cost for six months or greater, $65 million , or 77% , were related to gross unrealized losses on 13 investment grade fixed maturity securities. Unrealized losses on investment grade fixed maturity securities are principally related to widening credit spreads and, with respect to fixed-rate fixed maturity securities, rising interest rates since purchase. Below Investment Grade Fixed Maturity Securities Of the $84 million of gross unrealized losses on fixed maturity securities with an unrealized loss of 20% or more of amortized cost for six months or greater, $19 million , or 23% , were related to gross unrealized losses on 21 below investment grade fixed maturity securities. Unrealized losses on below investment grade fixed maturity securities are principally related to U.S. and foreign corporate securities (primarily industrial securities) and are the result of significantly wider credit spreads resulting from higher risk premiums since purchase, largely due to economic and market uncertainties including concerns over lower oil prices in the energy sector. Management evaluates U.S. and foreign corporate securities based on factors such as expected cash flows and the financial condition and near-term and long-term prospects of the issuers. Equity Securities Gross unrealized losses on equity securities decreased $1 million during the six months ended June 30, 2016 to $13 million . Of the $13 million , $7 million were from two securities with gross unrealized losses of 20% or more of cost for 12 months or greater. Of the $7 million , 43% were rated A or better, and all were from financial services industry investment grade non-redeemable preferred stock. Mortgage Loans Mortgage Loans by Portfolio Segment Mortgage loans are summarized as follows at: June 30, 2016 December 31, 2015 Carrying Value % of Total Carrying Value % of Total (Dollars in millions) Mortgage loans: Commercial $ 5,971 73.0 % $ 5,331 73.4 % Agricultural 1,557 19.0 1,460 20.1 Residential 533 6.5 335 4.6 Subtotal (1) 8,061 98.5 7,126 98.1 Valuation allowances (41 ) (0.5 ) (36 ) (0.5 ) Subtotal mortgage loans, net 8,020 98.0 7,090 97.6 Commercial mortgage loans held by CSEs - FVO 159 2.0 172 2.4 Total mortgage loans, net $ 8,179 100.0 % $ 7,262 100.0 % __________________ (1) Purchases of mortgage loans were $192 million and $231 million for the three months and six months ended June 30, 2016 , respectively. Purchases of mortgage loans were $40 million for both the three months and six months ended June 30, 2015 . See “— Variable Interest Entities” for discussion of consolidated securitization entities (“CSEs”). See “— Related Party Investment Transactions” for discussion of related party mortgage loans. Information on commercial, agricultural and residential mortgage loans is presented in the tables below. Information on commercial mortgage loans held by CSEs - FVO is presented in Note 6 . The Company elects the FVO for certain commercial mortgage loans and related long-term debt that are managed on a total return basis. Mortgage Loans, Valuation Allowance and Impaired Loans by Portfolio Segment Mortgage loans by portfolio segment, by method of evaluation of credit loss, impaired mortgage loans including those modified in a troubled debt restructuring, and the related valuation allowances, were as follows at: Evaluated Individually for Credit Losses Evaluated Collectively for Credit Losses Impaired Loans Impaired Loans with a Valuation Allowance Impaired Loans without a Valuation Allowance Unpaid Principal Balance Recorded Investment Valuation Unpaid Principal Balance Recorded Recorded Valuation Carrying (In millions) June 30, 2016 Commercial $ — $ — $ — $ — $ — $ 5,971 $ 32 $ — Agricultural 4 3 — — — 1,554 5 3 Residential — — — — — 533 4 — Total $ 4 $ 3 $ — $ — $ — $ 8,058 $ 41 $ 3 December 31, 2015 Commercial $ — $ — $ — $ — $ — $ 5,331 $ 28 $ — Agricultural 4 3 — — — 1,457 5 3 Residential — — — — — 335 3 — Total $ 4 $ 3 $ — $ — $ — $ 7,123 $ 36 $ 3 The average recorded investment for impaired commercial, agricultural and residential mortgage loans was $0 , $3 million and $0 , respectively, for both the three months and six months ended June 30, 2016 and 2015 . Valuation Allowance Rollforward by Portfolio Segment The changes in the valuation allowance, by portfolio segment, were as follows: Six Months 2016 2015 Commercial Agricultural Residential Total Commercial Agricultural Residential Total (In millions) Balance, beginning of period $ 28 $ 5 $ 3 $ 36 $ 21 $ 4 $ — $ 25 Provision (release) 4 — 1 5 4 — 1 5 Balance, end of period $ 32 $ 5 $ 4 $ 41 $ 25 $ 4 $ 1 $ 30 Credit Quality of Commercial Mortgage Loans The credit quality of commercial mortgage loans was as follows at: Recorded Investment Debt Service Coverage Ratios % of Total Estimated Fair Value % of Total > 1.20x 1.00x - 1.20x < 1.00x Total (Dollars in millions) June 30, 2016 Loan-to-value ratios: Less than 65% $ 5,157 $ 177 $ 134 $ 5,468 91.6 % $ 5,853 92.0 % 65% to 75% 413 — 14 427 7.1 438 6.9 76% to 80% — — — — — — — Greater than 80% 62 14 — 76 1.3 73 1.1 Total $ 5,632 $ 191 $ 148 $ 5,971 100.0 % $ 6,364 100.0 % December 31, 2015 Loan-to-value ratios: Less than 65% $ 4,659 $ 151 $ 100 $ 4,910 92.1 % $ 5,124 92.6 % 65% to 75% 330 — 8 338 6.3 330 6.0 76% to 80% — — — — — — — Greater than 80% 44 25 14 83 1.6 80 1.4 Total $ 5,033 $ 176 $ 122 $ 5,331 100.0 % $ 5,534 100.0 % Credit Quality of Agricultural Mortgage Loans The credit quality of agricultural mortgage loans was as follows at: June 30, 2016 December 31, 2015 Recorded Investment % of Total Recorded Investment % of Total (Dollars in millions) Loan-to-value ratios: Less than 65% $ 1,451 93.2 % $ 1,366 93.6 % 65% to 75% 106 6.8 94 6.4 Total $ 1,557 100.0 % $ 1,460 100.0 % The estimated fair value of agricultural mortgage loans was $1.6 billion and $1.5 billion at June 30, 2016 and December 31, 2015 , respectively. Credit Quality of Residential Mortgage Loans The credit quality of residential mortgage loans was as follows at: June 30, 2016 December 31, 2015 Recorded Investment % of Total Recorded Investment % of Total (Dollars in millions) Performance indicators: Performing $ 525 98.5 % $ 331 98.8 % Nonperforming 8 1.5 4 1.2 Total $ 533 100.0 % $ 335 100.0 % The estimated fair value of residential mortgage loans was $546 million and $345 million at June 30, 2016 and December 31, 2015 , respectively. Past Due and Interest Accrual Status of Mortgage Loans The Company has a high quality, well performing mortgage loan portfolio, with 99% of all mortgage loans classified as performing at both June 30, 2016 and December 31, 2015 . The Company defines delinquency 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. The past due and accrual status of mortgage loans at recorded investment, prior to valuation allowances, by portfolio segment, were as follows at: Past Due Nonaccrual Status June 30, 2016 December 31, 2015 June 30, 2016 December 31, 2015 (In millions) Commercial $ — $ — $ — $ — Agricultural — — — — Residential 8 4 8 4 Total $ 8 $ 4 $ 8 $ 4 Mortgage Loans Modified in a Troubled Debt Restructuring There were no mortgage loans modified in a troubled debt restructuring during the three months and six months ended June 30, 2016 and 2015 . Cash Equivalents The carrying value of cash equivalents, which includes securities and other investments with an original or remaining maturity of three months or less at the time of purchase, was $2.0 billion and $1.1 billion at June 30, 2016 and December 31, 2015 , respectively. Net Unrealized Investment Gains (Losses) Unrealized investment gains (losses) on fixed maturity and equity securities AFS 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: June 30, 2016 December 31, 2015 (In millions) Fixed maturity securities $ 5,757 $ 2,265 Fixed maturity securities with noncredit OTTI losses included in AOCI (20 ) (19 ) Total fixed maturity securities 5,737 2,246 Equity securities 71 54 Derivatives 438 368 Other 84 78 Subtotal 6,330 2,746 Amounts allocated from: Future policy benefits (1,979 ) (56 ) DAC and VOBA related to noncredit OTTI losses recognized in AOCI (1 ) (1 ) DAC, VOBA and DSI (243 ) (198 ) Subtotal (2,223 ) (255 ) Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI 8 7 Deferred income tax benefit (expense) (1,417 ) (844 ) Net unrealized investment gains (losses) $ 2,698 $ 1,654 The changes in fixed maturity securities with noncredit OTTI losses included in AOCI were as follows: Six Months Year (In millions) Balance, beginning of period $ (19 ) $ (34 ) Noncredit OTTI losses and subsequent changes recognized 3 9 Securities sold with previous noncredit OTTI loss 3 17 Subsequent changes in estimated fair value (7 ) (11 ) Balance, end of period $ (20 ) $ (19 ) The changes in net unrealized investment gains (losses) were as follows: Six Months (In millions) Balance, beginning of period $ 1,654 Fixed maturity securities on which noncredit OTTI losses have been recognized (1 ) Unrealized investment gains (losses) during the period 3,585 Unrealized investment gains (losses) relating to: Future policy benefits (1,923 ) DAC, VOBA and DSI (45 ) Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI 1 Deferred income tax benefit (expense) (573 ) Balance, end of period $ 2,698 Change in net unrealized investment gains (losses) $ 1,044 Concentrations of Credit Risk There were no investments in any counterparty that were greater than 10% of the Company’s stockholder’s equity, other than the U.S. government and its agencies, at both June 30, 2016 and December 31, 2015 . Securities Lending Elements of the securities lending program are presented below at: June 30, 2016 December 31, 2015 (In millions) Securities on loan: (1) Amortized cost $ 8,149 $ 8,047 Estimated fair value $ 9,983 $ 8,830 Cash collateral on deposit from counterparties (2) $ 10,134 $ 8,981 Security collateral on deposit from counterparties (3) $ 117 $ 23 Reinvestment portfolio — estimated fair value $ 10,192 $ 8,938 __________________ (1) Included within fixed maturity securities, cash equivalents and short-term investments. At June 30, 2016 , both amortized cost and estimated fair value also included $106 million , at estimated fair value, of securities which are not reflected on the consolidated financial statements. (2) Included within payables for collateral under securities loaned and other transactions. (3) Security collateral on deposit from counterparties may not be sold or re-pledged, unless the counterparty is in default, and is not reflected on the consolidated financial statements. The cash collateral liability by loaned security type and remaining tenor of the agreements were as follows at: June 30, 2016 Remaining Tenor of Securities Lending Agreements Open (1) 1 Month or Less 1 to 6 Months Total % of Total (Dollars in millions) Cash collateral liability by loaned security type: U.S. government and agency $ 2,525 $ 2,678 $ 3,295 $ 8,498 83.8 % Agency RMBS — — 1,254 1,254 12.4 U.S. corporate 5 319 — 324 3.2 Foreign government — 46 — 46 0.5 Foreign corporate — 12 — 12 0.1 Total $ 2,530 $ 3,055 $ 4,549 $ 10,134 100 % December 31, 2015 Remaining Tenor of Securities Lending Agreements Open (1) 1 Month or Less 1 to 6 Months Total % of Total (Dollars in millions) Cash collateral liability by loaned security type: U.S. government and agency $ 2,631 $ 3,140 $ 1,338 $ 7,109 79.1 % Agency RMBS — 939 579 1,518 16.9 U.S. corporate 9 302 — 311 3.5 Foreign government 1 42 — 43 0.5 Foreign corporate — — — — — Total $ 2,641 $ 4,423 $ 1,917 $ 8,981 100 % __________________ (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 under normal market conditions, or both. The estimated fair value of the securities on loan related to the cash collateral on open at June 30, 2016 was $2.5 billion , over 99% of which were U.S. government and agency securities which, if put back to the Company, could be immediately sold to satisfy the cash requirement. The reinvestment portfolio acquired with the cash collateral consisted principally of fixed maturity securities (including U.S. government and agency, agency RMBS, ABS, short-term investments and non-agency RMBS) with 68% invested in U.S. government and agency securities, agency RMBS, short-term investments, or held in cash and cash equivalents. If the securities on loan or the reinvestment portfolio become less liquid, the Company has the liquidity resources of most of its general account available to meet any potential cash demands when securities on loan are put back to the Company. Repurchase Agreement Transactions The Company participates in short-term repurchase agreements and reverse repurchase agreements with unaffiliated financial institutions. Under these agreements, the Company lends fixed maturity securities and contemporaneously borrows other fixed maturity securities (e.g., repurchase and reverse repurchase, respectively). The Company obtains cash collateral in an amount greater than or equal to 95% of the estimated fair value of the securities loaned, and pledges cash collateral in an amount generally equal to 98% of the estimated fair value of the borrowed securities at the inception of the transaction. The Company monitors the estimated fair value of the securities loaned and borrowed on a daily basis with additional collateral obtained as necessary throughout the duration of the transaction. The Company accounted for these transactions as collateralized borrowing and lending. The amount of fixed maturity securities lent and borrowed, at estimated fair value, was $320 million and $308 million , respectively, at June 30, 2016 . There were no such transactions outstanding as of December 31, 2015. Securities loaned under such transactions may be sold or re-pledged by the transferee. Securities borrowed under such transactions may be re-pledged and are not reflected on the consolidated financial statements. The amount of borrowed securities which were re-pledged was $106 million , at estimated fair value, at June 30, 2016 . The Company has elected to offset amounts recognized as receivables and payables resulting from these transactions. The gross amounts of the receivables and payables related to these transactions at June 30, 2016 were both $300 million . After the effect of offsetting of $300 million , the net amount presented on the consolidated balance sheet at June 30, 2016 was a liability of less than $1 million . Amounts owed to and due from counterparties may be settled in cash or offset, in accordance with the agreements. Cash inflows and outflows for cash settlements are reported on the consolidated statements of cash flows. At June 30, 2016 , all $300 million of payables from repurchase agreements had a remaining tenor of one to six months and were loans of U.S. and foreign corporate securities. See Note 5 for information regarding the estimated fair value of the Company’s net derivative assets and net derivative liabilities after the application of master netting agreements and collateral. Invested Assets on Deposit, Held in Trust and Pledged as Collateral Invested assets on deposit, held in trust and pledged as collateral are presented below at estimated fair value for all asset classes, except mortgage loans, which are presented at carrying value at: June 30, 2016 December 31, 2015 (In millions) Invested assets on deposit (regulatory deposits) $ 8,171 $ 7,245 Invested assets held in trust (reinsurance agreements) (1) 1,121 952 Invested assets pledged as collateral (2) 5,168 2,801 Total invested assets on deposit, held in trust and pledged as collateral $ 14,460 $ 10,998 __________________ (1) The Company has held in trust certain investments, primarily fixed maturity securities, in connection with certain reinsurance transactions. (2) The Company has pledged invested assets in connection with various agreements and transactions, including funding agreements (see Note 5 of the Notes to the Consolidated Financial Statements included in the 2015 Annual Report) and derivative transactions (see Note 5 ). See “— Securities Lending” and “— Repurchase Agreement Transactions” for information regarding securities on loan. Variable Interest Entities The Company is involved with certain legal entities that are VIEs. In certain instances, the Company holds both the power to direct the most significant activities of the entity, as well as an economic interest in the entity and, as such, is deemed to be the primary beneficiary or consolidator of the entity. The determination of the VIE’s primary beneficiary requires an evaluation of the contractual and implied rights and obligations associated with each party’s relationship with or involvement in the entity. Consolidated VIEs Creditors or beneficial interest holders of VIEs where the Company is the pr imary beneficiary have no recourse to the general credit of the Company, as the Company’s obligation to the VIEs is limited to the amount of its committed investment. The following table presents the total assets and total liabilities re lating to VIEs for which the Company has concluded that it is the primary beneficiary and which are consolidated at June 30, 2016 and December 31, 2015 . June 30, 2016 December 31, 2015 (In millions) CSEs: (1) Assets Mortgage loans (commercial mortgage loans) $ 159 $ 172 Accrued investment income 1 1 Total assets $ 160 $ 173 Liabilities Long-term debt $ 35 $ 48 Other liabilities 1 1 Total liabilities $ 36 $ 49 __________________ (1) The Company consolidates entities that are structured as CMBS. The assets of these entities can only be used to settle their respective liabilities, and under no circumstances is the Company liable for any principal or interest shortfalls should any arise. The Company’s exposure was limited to that of its remaining investment in these entities of $106 million and $105 million at estimated fair value at June 30, 2016 and December 31, 2015 , respectively. The long-term debt bears interest primarily at fixed rates, ranging from 2.25% to 5.57% , payable primarily on a monthly basis. Interest expense related to these obligations, included in other expenses, was $2 million and $3 million for the three months and six months ended June 30, 2016 , respectively and $1 million and $2 million for the three months and six months ended June 30, 2015 , respectively. Unconsolidated VIEs The carrying amount and maximum exposure to loss relating to VIEs in which the Company holds a significant variable interest but is not the primary beneficiary and which have not been consolidated were as follows at: June 30, 2016 December 31, 2015 Carrying Amount Maximum Exposure to Loss (1) Carrying Amount Maximum Exposure to Loss (1) (In millions) Fixed maturity securities AFS: Structured Securities (2) $ 17,232 $ 17,232 $ 13,453 $ 13,453 U.S. and foreign corporate 479 479 461 461 Other limited partnership interests 1,576 2,175 1,367 1,647 Real estate joint ventures (3) 256 262 35 38 Other investments (4) 59 66 57 62 Total $ 19,602 $ 20,214 $ 15,373 $ 15,661 __________________ (1) The maximum exposure to loss relating to fixed maturity and equity securities AFS is equal to their carrying amounts or the carrying amounts of retained interests. The maximum exposure to loss relating to other limited partnership interests and real estate joint ventures is equal to the carrying amounts plus any unfunded commitments. For certain of its investments in other invested assets, the Company’s return is in the form of income tax credits which are guaranteed by creditworthy third parties. For such investments, the maximum exposure to loss is equal to the carrying amounts plus any unfunded commitments, reduced by income tax credits guaranteed by third parties of less than $1 million at both June 30, 2016 and December 31, 2015 . Such a maximum loss would be expected to occur only upon bankruptcy of the issuer or investee. (2) For these variable interests, the Company’s involvement is limited to that of a passive investor in mortgage-backed or asset-backed securities issued by trusts that do not have substantial equity. (3) Included in real estate joint ventures are investments in affiliated real estate joint ventures with a carrying value and maximum exposure to loss of $204 million at June 30, 2016 . (4) Other investments is comprised of other invested assets and non-redeemable preferred stock. As described in Note 9 , the Company makes commitments to fund partnership investments in the normal course of business. Excluding these commitments, the Company did not provide financial or other support to investees designated as VIEs during both the six months ended June 30, 2016 and 2015 . Net Investment Income The components of net investment income were as follows: Three Months Six Months 2016 2015 2016 2015 (In millions) Investment income: Fixed maturity securities $ 556 $ 506 $ 1,071 $ 993 Equity securities 4 4 9 8 Mortgage loans 106 83 194 155 Policy loans 15 13 29 26 Real estate and real estate joint ventures 2 44 15 66 Other limited partnership interests 20 55 41 107 Cash, cash equivalents and short-term investments 5 3 9 5 Operating joint venture 5 6 7 8 Other 2 (1 ) 2 3 Subtotal 715 713 1,377 1,371 Less: Investment expenses 39 29 77 56 Subtotal, net 676 684 1,300 1,315 FVO CSEs — interest income — commercial mortgage loans 2 5 5 9 Net investment income $ 678 $ 689 $ 1,305 $ 1,324 See “— Variable Interest Entities” for discussion of CSEs. See “— Related Party Investment Transactions” for discussion of affiliated net investment income and investment expenses. Net Investment Gains (Losses) Components of Net Investment Gains (Losses) The components of net investment gains (losses) were as follows: Three Months Six Months 2016 2015 2016 2015 (In millions) Total gains (losses) on fixed maturity securities: Total OTTI losses recognized — by sector and industry: U.S. and foreign corporate securities — by industry: Industrial $ — $ — $ (13 ) $ (1 ) Total U.S. and foreign corporate securities — — (13 ) (1 ) RMBS — — (2 ) (2 ) OTTI losses on fixed maturity securities recognized in earnings — — (15 ) (3 ) Fixed maturity securities — net gains (losses) on sales and disposals 21 (9 ) (12 ) 16 Total gains (losses) on fixed maturity securities 21 (9 ) (27 ) 13 Total gains (losses) on equity securities: Total OTTI losses recognized — by sector: Common stock — (1 ) (1 ) (1 ) OTTI losses on equity securities recognized in earnings — (1 ) (1 ) (1 ) Equity securities — net gains (losses) on sales and disposals — 3 4 2 Total gains (losses) on equity securities — 2 3 1 Mortgage loans (4 ) (4 ) (6 ) (5 ) Real estate and real estate joint ventures — 6 (1 ) 29 Other limited partnership interests (2 ) — (6 ) (1 ) Other 3 (3 ) 5 (1 ) Subtotal 18 (8 ) (32 ) 36 FVO CSEs: Commercial mortgage loans (1 ) 1 — (2 ) Long-term debt — related to commercial mortgage loans — 1 — 2 Non-investment portfolio gains (losses) (2 ) 1 (1 ) 1 Subtotal (3 ) 3 (1 ) 1 Total net investment gains (losses) $ 15 $ (5 ) $ (33 ) $ 37 See “— Variable Interest Entities” for discussion of CSEs. See “— Related Party Investment Transactions” for discussion of affiliated net investment gains (losses) related to transfers of invested assets to affiliates. Gains (losses) from foreign currency transactions included within net investment gains (losses) were $2 million and $5 million for the three months and six months ended June 30, 2016 , r espectively, and ($4) million and ($3) million for the three months and six months ended June 30, 2015 , respectively. Sales or Disposals and Impairments of Fixed Maturity and Equity Securities Investment gains and losses on sales of securities are determined on a specific identification basis. Proceeds from sales or disposals of fixed maturity and equity securities and the components of fixed maturity and equity securities net investment gains (losses) were as shown in the table below. Three Months 2016 2015 2016 2015 Fixed Maturity Securities Equity Securities (In millions) Proceeds $ 5,035 $ 7,948 $ 2 $ 12 Gross investment gains $ 38 $ 32 $ — $ 3 Gross investment losses (17 ) (41 ) — — OTTI losses — — — (1 ) Net investment gains (losses) $ 21 $ (9 ) $ — $ 2 Six Months 2016 2015 2016 2015 Fixed Maturity Securities Equity Securities (In millions) Proceeds $ 13,873 $ 15,932 $ 6 $ 14 Gross investment gains $ 71 $ 80 $ 4 $ 3 Gross investment losses (83 ) (64 ) — (1 ) OTTI losses (15 ) (3 ) (1 ) (1 ) Net investment gains (losses) $ (27 ) $ 13 $ 3 $ 1 Credit Loss Rollforward The table below presents a rollforward of the cumulative credit loss component of OTTI loss recognized in earnings on fixed maturity securities still held for which a portion of the OTTI loss was recognized in other comprehensive income (loss) (“OCI”): Three Months Six Months 2016 2015 2016 2015 (In millions) Balance, beginning of period $ 51 $ 56 $ 52 $ 57 Additions: Initial impairments — credit loss OTTI on securities not previously impaired — 1 — 1 Additional impairments — credit loss OTTI on securities previously impaired 1 — 2 2 Reductio |
Derivatives
Derivatives | 6 Months Ended |
Jun. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | 5. Derivatives Accounting for Derivatives Freestanding Derivatives Freestanding derivatives are carried on the Company’s balance sheet either as assets within other invested assets or as liabilities within other liabilities at estimated fair value. The Company does not offset the estimated fair value amounts recognized for derivatives executed with the same counterparty under the same master netting agreement. Accruals on derivatives are generally recorded in accrued investment income or within other liabilities. However, accruals that are not scheduled to settle within one year are included with the derivatives carrying value in other invested assets or other liabilities. If a derivative is not designated as an accounting hedge or its use in managing risk does not qualify for hedge accounting, changes in the estimated fair value of the derivative are reported in net derivative gains (losses) except as follows: Statement of Operations Presentation: Derivative: Policyholder benefits and claims • Economic hedges of variable annuity guarantees included in future policy benefits Net investment income • Economic hedges of equity method investments in joint ventures Hedge Accounting To qualify for hedge accounting, at the inception of the hedging relationship, the Company formally documents its risk management objective and strategy for undertaking the hedging transaction, as well as its designation of the hedge. Hedge designation and financial statement presentation of changes in estimated fair value of the hedging derivatives are as follows: • Fair value hedge (a hedge of the estimated fair value of a recognized asset or liability) - in net derivative gains (losses), consistent with the change in estimated fair value of the hedged item attributable to the designated risk being hedged. • Cash flow hedge (a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability) - effectiveness in OCI (deferred gains or losses on the derivative are reclassified into the statement of operations when the Company’s earnings are affected by the variability in cash flows of the hedged item); ineffectiveness in net derivative gains (losses). The changes in estimated fair values of the hedging derivatives are exclusive of any accruals that are separately reported on the statement of operations within interest income or interest expense to match the location of the hedged item. In its hedge documentation, the Company sets forth how the hedging instrument is expected to hedge the designated risks related to the hedged item and sets forth the method that will be used to retrospectively and prospectively assess the hedging instrument’s effectiveness and the method that will be used to measure ineffectiveness. A derivative designated as a hedging instrument must be assessed as being highly effective in offsetting the designated risk of the hedged item. Hedge effectiveness is formally assessed at inception and at least quarterly throughout the life of the designated hedging relationship. Assessments of hedge effectiveness and measurements of ineffectiveness are also subject to interpretation and estimation and different interpretations or estimates may have a material effect on the amount reported in net income. The Company discontinues hedge accounting prospectively when: (i) it is determined that the derivative is no longer highly effective in offsetting changes in the estimated fair value or cash flows of a hedged item; (ii) the derivative expires, is sold, terminated, or exercised; (iii) it is no longer probable that the hedged forecasted transaction will occur; or (iv) the derivative is de-designated as a hedging instrument. When hedge accounting is discontinued because it is determined that the derivative is not highly effective in offsetting changes in the estimated fair value or cash flows of a hedged item, the derivative continues to be carried on the balance sheet at its estimated fair value, with changes in estimated fair value recognized in net derivative gains (losses). The carrying value of the hedged recognized asset or liability under a fair value hedge is no longer adjusted for changes in its estimated fair value due to the hedged risk, and the cumulative adjustment to its carrying value is amortized into income over the remaining life of the hedged item. Provided the hedged forecasted transaction is still probable of occurrence, the changes in estimated fair value of derivatives recorded in OCI related to discontinued cash flow hedges are released into the statement of operations when the Company’s earnings are affected by the variability in cash flows of the hedged item. When hedge accounting is discontinued because it is no longer probable that the forecasted transactions will occur on the anticipated date or within two months of that date, the derivative continues to be carried on the balance sheet at its estimated fair value, with changes in estimated fair value recognized currently in net derivative gains (losses). Deferred gains and losses of a derivative recorded in OCI pursuant to the discontinued cash flow hedge of a forecasted transaction that is no longer probable are recognized immediately in net derivative gains (losses). In all other situations in which hedge accounting is discontinued, the derivative is carried at its estimated fair value on the balance sheet, with changes in its estimated fair value recognized in the current period as net derivative gains (losses). Embedded Derivatives The Company sells variable annuities and issues certain insurance products and investment contracts and is a party to certain reinsurance agreements that have embedded derivatives. The Company assesses each identified embedded derivative to determine whether it is required to be bifurcated. The embedded derivative is bifurcated from the host contract and accounted for as a freestanding derivative if: • the combined instrument is not accounted for in its entirety at estimated fair value with changes in estimated fair value recorded in earnings; • the terms of the embedded derivative are not clearly and closely related to the economic characteristics of the host contract; and • a separate instrument with the same terms as the embedded derivative would qualify as a derivative instrument. Such embedded derivatives are carried on the balance sheet at estimated fair value with the host contract and changes in their estimated fair value are generally reported in net derivative gains (losses), except for those in policyholder benefits and claims related to ceded reinsurance of GMIB. If the Company is unable to properly identify and measure an embedded derivative for separation from its host contract, the entire contract is carried on the balance sheet at estimated fair value, with changes in estimated fair value recognized in the current period in net investment gains (losses) or net investment income. Additionally, the Company may elect to carry an entire contract on the balance sheet at estimated fair value, with changes in estimated fair value recognized in the current period in net investment gains (losses) or net investment income if that contract contains an embedded derivative that requires bifurcation. At inception, the Company attributes to the embedded derivative a portion of the projected future guarantee fees to be collected from the policyholder equal to the present value of projected future guaranteed benefits. Any additional fees represent “excess” fees and are reported in universal life and investment-type product policy fees. See Note 6 for information about the fair value hierarchy for derivatives. Derivative Strategies The Company is exposed to various risks relating to its ongoing business operations, including interest rate, foreign currency exchange rate, credit and equity market. The Company uses a variety of strategies to manage these risks, including the use of 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 types of derivatives the Company uses include swaps, forwards, futures and option contracts. To a lesser extent, the Company uses credit default swaps to synthetically replicate investment risks and returns which are not readily available in the cash market. Interest Rate Derivatives The Company uses a variety of interest rate derivatives to reduce its exposure to changes in interest rates, including interest rate swaps, interest rate total return swaps, caps, floors, swaptions, futures and forwards. Interest rate swaps are used by the Company primarily to reduce market risks from changes in interest rates and to alter interest rate exposure arising from mismatches between assets and liabilities (duration mismatches). In an interest rate swap, the Company agrees with another party to exchange, at specified intervals, the difference between fixed rate and floating rate interest amounts as calculated by reference to an agreed notional amount. The Company utilizes interest rate swaps in fair value, cash flow and nonqualifying hedging relationships. Interest rate total return swaps are swaps whereby the Company agrees with another party to exchange, at specified intervals, the difference between the economic risk and reward of an asset or a market index and the London Interbank Offered Rate (“LIBOR”), calculated by reference to an agreed notional amount. No cash is exchanged at the outset of the contract. Cash is paid and received over the life of the contract based on the terms of the swap. These transactions are entered into pursuant to master agreements that provide for a single net payment to be made by the counterparty at each due date. Interest rate total return swaps are used by the Company to reduce market risks from changes in interest rates and to alter interest rate exposure arising from mismatches between assets and liabilities (duration mismatches). The Company utilizes interest rate total return swaps in nonqualifying hedging relationships The Company purchases interest rate caps and floors primarily to protect its floating rate liabilities against rises in interest rates above a specified level, and against interest rate exposure arising from mismatches between assets and liabilities, as well as to protect its minimum rate guarantee liabilities against declines in interest rates below a specified level, respectively. In certain instances, the Company locks in the economic impact of existing purchased caps and floors by entering into offsetting written caps and floors. The Company utilizes interest rate caps and floors in nonqualifying hedging relationships. In exchange-traded interest rate (Treasury and swap) futures transactions, the Company agrees to purchase or sell a specified number of contracts, the value of which is determined by the different classes of interest rate securities, and to post variation margin on a daily basis in an amount equal to the difference in the daily market values of those contracts. The Company enters into exchange-traded futures with regulated futures commission merchants that are members of the exchange. Exchange-traded interest rate (Treasury and swap) futures are used primarily to hedge mismatches between the duration of assets in a portfolio and the duration of liabilities supported by those assets, to hedge against changes in value of securities the Company owns or anticipates acquiring, to hedge against changes in interest rates on anticipated liability issuances by replicating Treasury or swap curve performance, and to hedge minimum guarantees embedded in certain variable annuity products offered by the Company. The Company utilizes exchange-traded interest rate futures in nonqualifying hedging relationships. Swaptions are used by the Company to hedge interest rate risk associated with the Company’s long-term liabilities and invested assets. A swaption is an option to enter into a swap with a forward starting effective date. In certain instances, the Company locks in the economic impact of existing purchased swaptions by entering into offsetting written swaptions. The Company pays a premium for purchased swaptions and receives a premium for written swaptions. The Company utilizes swaptions in nonqualifying hedging relationships. Swaptions are included in interest rate options. The Company enters into interest rate forwards to buy and sell securities. The price is agreed upon at the time of the contract and payment for such a contract is made at a specified future date. The Company utilizes interest rate forwards in cash flow hedging relationships. Foreign Currency Exchange Rate Derivatives The Company uses foreign currency swaps to reduce the risk from fluctuations in foreign currency exchange rates associated with its assets and liabilities denominated in foreign currencies. In a foreign currency swap transaction, the Company agrees with another party to exchange, at specified intervals, the difference between one currency and another at a fixed exchange rate, generally set at inception, calculated by reference to an agreed upon notional amount. The notional amount of each currency is exchanged at the inception and termination of the currency swap by each party. The Company utilizes foreign currency swaps in cash flow and nonqualifying hedging relationships. To a lesser extent, the Company uses foreign currency forwards and exchange-traded currency futures in nonqualifying hedging relationships. Credit Derivatives The Company enters into purchased credit default swaps to hedge against credit-related changes in the value of its investments. In a credit default swap transaction, the Company agrees with another party to pay, at specified intervals, a premium to hedge 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 delivery of par quantities of the referenced investment equal to the specified swap notional amount in exchange for the payment of cash amounts by the counterparty equal to the par value of the investment surrendered. Credit events vary by type of issuer but typically include bankruptcy, failure to pay debt obligations, repudiation, moratorium, involuntary restructuring or governmental intervention. In each case, payout on a credit default swap is triggered only after the Credit Derivatives Determinations Committee of the International Swaps and Derivatives Association, Inc. (“ISDA”) deems that a credit event has occurred. The Company utilizes credit default swaps in nonqualifying hedging relationships. The Company enters into written credit default swaps to synthetically create credit investments that are either more expensive to acquire or otherwise unavailable in the cash markets. These transactions are a combination of a derivative and one or more cash instruments, such as U.S. government and agency securities or other fixed maturity securities. These credit default swaps are not designated as hedging instruments. To a lesser extent, the Company uses credit forwards to lock in the price to be paid for forward purchases of certain securities. The Company utilizes credit forwards in cash flow hedging relationships. Equity Derivatives The Company uses a variety of equity derivatives to reduce its exposure to equity market risk, including equity index options, equity variance swaps, exchange-traded equity futures and equity total return swaps. Equity index options are used by the Company primarily to hedge minimum guarantees embedded in certain variable annuity products offered by the Company. To hedge against adverse changes in equity indices, the Company enters into contracts to sell the equity index within a limited time at a contracted price. The contracts will be net settled in cash based on differentials in the indices at the time of exercise and the strike price. Certain of these contracts may also contain settlement provisions linked to interest rates. In certain instances, the Company may enter into a combination of transactions to hedge adverse changes in equity indices within a pre-determined range through the purchase and sale of options. The Company utilizes equity index options in nonqualifying hedging relationships. Equity variance swaps are used by the Company primarily to hedge minimum guarantees embedded in certain variable annuity products offered by the Company. In an equity variance swap, the Company agrees with another party to exchange amounts in the future, based on changes in equity volatility over a defined period. The Company utilizes equity variance swaps in nonqualifying hedging relationships. In exchange-traded equity futures transactions, the Company agrees to purchase or sell a specified number of contracts, the value of which is determined by the different classes of equity securities, and to post variation margin on a daily basis in an amount equal to the difference in the daily market values of those contracts. The Company enters into exchange-traded futures with regulated futures commission merchants that are members of the exchange. Exchange-traded equity futures are used primarily to hedge minimum guarantees embedded in certain variable annuity products offered by the Company. The Company utilizes exchange-traded equity futures in nonqualifying hedging relationships. In an equity total return swap, the Company agrees with another party to exchange, at specified intervals, the difference between the economic risk and reward of an asset or a market index and LIBOR, calculated by reference to an agreed notional amount. No cash is exchanged at the outset of the contract. Cash is paid and received over the life of the contract based on the terms of the swap. The Company uses equity total return swaps to hedge its equity market guarantees in certain of its insurance products. Equity total return swaps can be used as hedges or to synthetically create investments. The Company utilizes equity total return swaps in nonqualifying hedging relationships. Primary Risks Managed by Derivatives The following table presents the gross notional amount, estimated fair value and primary underlying risk exposure of the Company’s derivatives, excluding embedded derivatives, held at: June 30, 2016 December 31, 2015 Primary Underlying Risk Exposure Gross Notional Estimated Fair Value Gross Notional Estimated Fair Value Assets Liabilities Assets Liabilities (In millions) Derivatives Designated as Hedging Instruments Fair value hedges Interest rate swaps Interest rate $ 349 $ 63 $ 3 $ 420 $ 38 $ 1 Cash flow hedges Interest rate swaps Interest rate 123 52 — 230 60 — Interest rate forwards Interest rate 35 16 — 35 8 — Foreign currency swaps Foreign currency exchange rate 1,186 173 3 937 126 3 Subtotal 1,344 241 3 1,202 194 3 Total qualifying hedges 1,693 304 6 1,622 232 4 Derivatives Not Designated or Not Qualifying as Hedging Instruments: Interest rate swaps Interest rate 22,648 3,111 1,019 23,134 1,804 638 Interest rate floors Interest rate 2,100 20 14 7,036 33 24 Interest rate caps Interest rate 14,192 8 — 13,792 38 — Interest rate futures Interest rate 2,357 — 3 630 2 — Interest rate options Interest rate 16,720 1,051 — 18,620 472 5 Interest rate total return swaps Interest rate 1,262 66 — — — — Foreign currency swaps Foreign currency exchange rate 1,107 118 12 659 75 — Foreign currency forwards Foreign currency exchange rate 141 3 — 185 4 1 Credit default swaps — purchased Credit 44 — 1 21 — — Credit default swaps — written Credit 1,957 17 1 2,093 13 1 Equity futures Equity market 8,512 1 96 3,669 37 — Equity index options Equity market 42,061 1,266 783 44,035 1,032 626 Equity variance swaps Equity market 14,935 128 463 14,866 120 434 Equity total return swaps Equity market 2,946 42 29 2,814 31 49 Total non-designated or nonqualifying derivatives 130,982 5,831 2,421 131,554 3,661 1,778 Total $ 132,675 $ 6,135 $ 2,427 $ 133,176 $ 3,893 $ 1,782 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 June 30, 2016 and December 31, 2015 . The Company’s use of derivatives includes (i) derivatives that serve as macro hedges of the Company’s exposure to various risks and that generally do not qualify for hedge accounting due to the criteria required under the portfolio hedging rules; (ii) derivatives that economically hedge insurance liabilities that contain mortality or morbidity risk and that generally do not qualify for hedge accounting because the lack of these risks in the derivatives cannot support an expectation of a highly effective hedging relationship; (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 synthetically create credit investments and that do not qualify for hedge accounting because they do not involve a hedging relationship. For these nonqualified derivatives, changes in market factors can lead to the recognition of fair value changes on the statement of operations without an offsetting gain or loss recognized in earnings for the item being hedged. Net Derivative Gains (Losses) The components of net derivative gains (losses) were as follows: Three Months Six Months 2016 2015 2016 2015 (In millions) Freestanding derivatives and hedging gains (losses) (1) $ 512 $ (787 ) $ 1,287 $ (466 ) Embedded derivatives gains (losses) (3,742 ) 770 (4,522 ) 534 Total net derivative gains (losses) $ (3,230 ) $ (17 ) $ (3,235 ) $ 68 __________________ (1) Includes foreign currency transaction gains (losses) on hedged items in cash flow and nonqualifying hedging relationships, which are not presented elsewhere in this note. The following table presents earned income on derivatives: Three Months Six Months 2016 2015 2016 2015 (In millions) Qualifying hedges: Net investment income $ 4 $ 2 $ 7 $ 5 Interest credited to policyholder account balances — (1 ) — (1 ) Nonqualifying hedges: Net derivative gains (losses) 99 86 196 177 Policyholder benefits and claims 3 4 7 7 Total $ 106 $ 91 $ 210 $ 188 Nonqualifying Derivatives and Derivatives for Purposes Other Than Hedging The following table presents the amount and location of gains (losses) recognized in income for derivatives that were not designated or not qualifying as hedging instruments: Net Net Policyholder (In millions) Three Months Ended June 30, 2016 Interest rate derivatives $ 599 $ — $ 10 Foreign currency exchange rate derivatives 29 — — Credit derivatives — written (1 ) — — Equity derivatives (215 ) (1 ) (47 ) Total $ 412 $ (1 ) $ (37 ) Three Months Ended June 30, 2015 Interest rate derivatives $ (682 ) $ — $ (17 ) Foreign currency exchange rate derivatives (34 ) — — Credit derivatives — written (6 ) — — Equity derivatives (157 ) — (23 ) Total $ (879 ) $ — $ (40 ) Six Months Ended June 30, 2016 Interest rate derivatives $ 1,416 $ — $ 29 Foreign currency exchange rate derivatives 29 — — Credit derivatives — written (1 ) — — Equity derivatives (351 ) (4 ) (17 ) Total $ 1,093 $ (4 ) $ 12 Six Months Ended June 30, 2015 Interest rate derivatives $ (281 ) $ — $ (6 ) Foreign currency exchange rate derivatives 1 — — Credit derivatives — written (5 ) — — Equity derivatives (366 ) (1 ) (96 ) Total $ (651 ) $ (1 ) $ (102 ) __________________ (1) Changes in estimated fair value related to economic hedges of equity method investments in joint ventures. (2) Changes in estimated fair value related to economic hedges of variable annuity guarantees included in future policy benefits. Fair Value Hedges The Company designates and accounts for interest rate swaps to convert fixed rate assets and liabilities to floating rate assets and liabilities as fair value hedges when they have met the requirements of fair value hedging. The Company recognizes gains and losses on derivatives and the related hedged items in fair value hedges within net derivative gains (losses). The following table presents the amount of such net derivative gains (losses): Net Derivative Net Derivative Ineffectiveness (In millions) Three Months Ended June 30, 2016 Interest rate swaps: Fixed maturity securities $ (1 ) $ — $ (1 ) Policyholder liabilities (1) 10 (10 ) — Total $ 9 $ (10 ) $ (1 ) Three Months Ended June 30, 2015 Interest rate swaps: Fixed maturity securities $ 1 $ — $ 1 Policyholder liabilities (1) (16 ) 16 — Total $ (15 ) $ 16 $ 1 Six Months Ended June 30, 2016 Interest rate swaps: Fixed maturity securities $ (3 ) $ 2 $ (1 ) Policyholder liabilities (1) 24 (24 ) — Total $ 21 $ (22 ) $ (1 ) Six Months Ended June 30, 2015 Interest rate swaps: Fixed maturity securities $ — $ 1 $ 1 Policyholder liabilities (1) (7 ) 7 — Total $ (7 ) $ 8 $ 1 __________________ (1) Fixed rate liabilities reported in policyholder account balances or future policy benefits. All components of each derivative’s gain or loss were included in the assessment of hedge effectiveness. Cash Flow Hedges The Company designates and accounts for the following as cash flow hedges when they have met the requirements of cash flow hedging: (i) interest rate swaps to convert floating rate assets and liabilities to fixed rate assets and liabilities; (ii) foreign currency swaps to hedge the foreign currency cash flow exposure of foreign currency denominated assets and liabilities; (iii) interest rate forwards and credit forwards to lock in the price to be paid for forward purchases of investments; and (iv) interest rate swaps and interest rate forwards to hedge the forecasted purchases of fixed-rate investments. In certain instances, the Company discontinued cash flow hedge accounting because the forecasted transactions were no longer probable of occurring. Because certain of the forecasted transactions also were not probable of occurring within two months of the anticipated date, the Company reclassified amounts from AOCI into net derivative gains (losses). For both the three months and six months ended June 30, 2016 , there were no amounts reclassified into net derivative gains (losses) related to such discontinued cash flow hedges. For both the three months and six months ended June 30, 2015, the amounts reclassified into net derivative gains (losses) related to such discontinued cash flow hedges were not significant. At June 30, 2016 and December 31, 2015 , the maximum length of time over which the Company was hedging its exposure to variability in future cash flows for forecasted transactions did not exceed three years and four years , respectively. At June 30, 2016 and December 31, 2015 , the balance in AOCI associated with cash flow hedges was $438 million and $368 million , respectively. The following table presents the effects of derivatives in cash flow hedging relationships on the consolidated statements of operations and comprehensive income (loss) and the consolidated statements of stockholder’s equity: Derivatives in Cash Flow Hedging Relationships Amount of Gains (Losses) Deferred in AOCI on Derivatives Amount and Location of Gains (Losses) Reclassified from AOCI into Income (Loss) Amount and Location of Gains (Losses) Recognized in Income (Loss) on Derivatives (Effective Portion) (Effective Portion) (Ineffective Portion) Net Derivative Gains (Losses) Net Investment Income Net Derivative Gains (Losses) (In millions) Three Months Ended June 30, 2016 Interest rate swaps $ 10 $ 12 $ — $ — Interest rate forwards 3 (1 ) 1 — Foreign currency swaps 57 (1 ) — — Credit forwards — — — — Total $ 70 $ 10 $ 1 $ — Three Months Ended June 30, 2015 Interest rate swaps $ (41 ) $ — $ 1 $ 1 Interest rate forwards (11 ) — — — Foreign currency swaps (31 ) 2 — — Credit forwards — — — — Total $ (83 ) $ 2 $ 1 $ 1 Six Months Ended June 30, 2016 Interest rate swaps $ 36 $ 12 $ 1 $ — Interest rate forwards 7 1 2 — Foreign currency swaps 44 1 — — Credit forwards — — — — Total $ 87 $ 14 $ 3 $ — Six Months Ended June 30, 2015 Interest rate swaps $ (12 ) $ 1 $ 1 $ 1 Interest rate forwards — 1 1 — Foreign currency swaps 21 (2 ) — — Credit forwards — (1 ) — — Total $ 9 $ (1 ) $ 2 $ 1 All components of each derivative’s gain or loss were included in the assessment of hedge effectiveness. At June 30, 2016 , the Company expects to reclassify $33 million of deferred net gains (losses) on derivatives in AOCI to earnings within the next 12 months. 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. Such credit derivatives are included within the nonqualifying derivatives and derivatives for purposes other than hedging table. 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 Company’s maximum amount at risk, assuming the value of all referenced credit obligations is zero, was $2.0 billion and $2.1 billion at June 30, 2016 and December 31, 2015 , respectively. The Company can terminate these contracts at any time through cash settlement with the counterparty at an amount equal to the then current estimated fair value of the credit default swaps. At June 30, 2016 and December 31, 2015 , the Company would have received $16 million and $12 million , respectively, to terminate all of these contracts. The following table presents the estimated fair value, maximum amount of future payments and weighted average years to maturity of written credit default swaps at: June 30, 2016 December 31, 2015 Rating Agency Designation of Referenced Credit Obligations (1) Estimated Fair Value of Credit Default Swaps Maximum Amount of Future Payments under Credit Default Swaps Weighted Average Years to Maturity (2) Estimated Fair Value of Credit Default Swaps Maximum Amount of Future Payments under Credit Default Swaps Weighted Average Years to Maturity (2) (Dollars in millions) Aaa/Aa/A Single name credit default swaps (corporate) $ — $ 102 1.8 $ 1 $ 207 1.5 Credit default swaps referencing indices 3 318 3.8 1 219 4.0 Subtotal 3 420 3.4 2 426 2.8 Baa Single name credit default swaps (corporate) 1 274 1.7 2 409 1.6 Credit default swaps referencing indices 12 1,263 5.0 8 1,222 4.8 Subtotal 13 1,537 4.4 10 1,631 4.0 B Single name credit default swaps (corporate) — — — — — — Credit default swaps referencing indices — — — — 36 5.0 Subtotal — — — — 36 5.0 Total $ 16 $ 1,957 4.2 $ 12 $ 2,093 3.8 __________________ (1) The rating agency designations are based on availability and the midpoint of the applicable ratings among Moody’s Investors Service (“Moody’s”), Standard & Poor’s Ratings Services (“S&P”) and Fitch Ratings. 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. Credit Risk on Freestanding Derivatives The Company may be exposed to credit-related losses in the event of nonperformance by its counterparties to derivatives. Generally, the current credit exposure of the Company’s derivatives is limited to the net positive estimated fair value of derivatives at the reporting date after taking into consideration the existence of master netting or similar agreements and any collateral received pursuant to such agreements. The Company manages its credit risk related to derivatives by entering into transactions with creditworthy counterparties and establishing and monitoring exposure limits. The Company’s OTC-bilateral derivative transactions are generally governed by ISDA Master Agreements which provide for legally enforceable set-off and close-out netting of exposures to specific counterparties in the event of early termination of a transaction, which includes, but is not limited to, events of default and bankruptcy. In the event of an early termination, the Company is permitted to set off receivables from the counterparty against payables to the same counterparty arising out of all included transactions. Substantially a |
Fair Value
Fair Value | 6 Months Ended |
Jun. 30, 2016 | |
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, including those items for which the Company has elected the FVO, are presented below. June 30, 2016 Fair Value Hierarchy Total Level 1 Level 2 Level 3 (In millions) Assets Fixed maturity securities: U.S. corporate $ — $ 17,383 $ 1,634 $ 19,017 U.S. government and agency 10,109 7,631 25 17,765 RMBS 1,563 7,566 1,455 10,584 Foreign corporate — 4,982 874 5,856 State and political subdivision — 3,183 8 3,191 ABS — 3,008 163 3,171 CMBS — 3,303 174 3,477 Foreign government — 973 9 982 Total fixed maturity securities 11,672 48,029 4,342 64,043 Equity securities: 42 175 173 390 Short-term investments (1) 112 2,310 111 2,533 Commercial mortgage loans held by CSEs — FVO — 159 — 159 Derivative assets: (2) Interest rate — 4,306 81 4,387 Foreign currency exchange rate — 294 — 294 Credit — 13 4 17 Equity market 1 1,222 214 1,437 Total derivative assets 1 5,835 299 6,135 Net embedded derivatives within asset host contracts (3) — — 413 413 Separate account assets (4) 546 100,332 142 101,020 Total assets $ 12,373 $ 156,840 $ 5,480 $ 174,693 Liabilities Derivative liabilities: (2) Interest rate $ 3 $ 1,036 $ — $ 1,039 Foreign currency exchange rate — 15 — 15 Credit — 2 — 2 Equity market 96 794 481 1,371 Total derivative liabilities 99 1,847 481 2,427 Net embedded derivatives within liability host contracts (3) — — 6,115 6,115 Long-term debt of CSEs — FVO — 35 — 35 Total liabilities $ 99 $ 1,882 $ 6,596 $ 8,577 December 31, 2015 Fair Value Hierarchy Total Estimated Level 1 Level 2 Level 3 (In millions) Assets Fixed maturity securities: U.S. corporate $ — $ 15,295 $ 1,451 $ 16,746 U.S. government and agency 7,998 5,808 — 13,806 RMBS — 7,138 1,340 8,478 Foreign corporate — 4,263 691 4,954 State and political subdivision — 2,692 13 2,705 ABS — 2,357 317 2,674 CMBS — 2,120 181 2,301 Foreign government — 719 26 745 Total fixed maturity securities 7,998 40,392 4,019 52,409 Equity securities: 44 268 97 409 Short-term investments (1) 59 1,623 47 1,729 Commercial mortgage loans held by CSEs — FVO — 172 — 172 Derivative assets: (2) Interest rate 2 2,445 8 2,455 Foreign currency exchange rate — 205 — 205 Credit — 12 1 13 Equity market 37 968 215 1,220 Total derivative assets 39 3,630 224 3,893 Net embedded derivatives within asset host contracts (3) — — 277 277 Separate account assets (4) 624 100,965 146 101,735 Total assets $ 8,764 $ 147,050 $ 4,810 $ 160,624 Liabilities Derivative liabilities: (2) Interest rate $ — $ 668 $ — $ 668 Foreign currency exchange rate — 4 — 4 Credit — 1 — 1 Equity market — 653 456 1,109 Total derivative liabilities — 1,326 456 1,782 Net embedded derivatives within liability host contracts (3) — — 1,324 1,324 Long-term debt of CSEs — FVO — 48 — 48 Total liabilities $ — $ 1,374 $ 1,780 $ 3,154 __________________ (1) Short-term investments as presented in the tables above differ from the amounts presented on the consolidated balance sheets because certain short-term investments are not measured at estimated fair value on a recurring basis. (2) 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, but are presented net for purposes of the rollforward in the Fair Value Measurements Using Significant Unobservable Inputs (Level 3) tables. (3) Net embedded derivatives within asset host contracts are presented within premiums, reinsurance and other receivables and other invested assets on the consolidated balance sheets. Net embedded derivatives within liability host contracts are presented within policyholder account balances and other liabilities on the consolidated balance sheets. At June 30, 2016 and December 31, 2015 , debt and equity securities also included embedded derivatives of ($77) million and ($63) million , respectively. (4) Investment performance related to separate account assets is fully offset by corresponding amounts credited to contractholders whose liability is reflected within separate account liabilities. Separate account liabilities are set equal to the estimated fair value of separate account assets. The following describes the valuation methodologies used to measure assets and liabilities at fair value. The description includes the valuation techniques and key inputs for each category of assets or liabilities that are classified within Level 2 and Level 3 of the fair value hierarchy. Investments Valuation Controls and Procedures On behalf of the Company and MetLife, Inc.’s Chief Investment Officer and Chief Financial Officer, a pricing and valuation committee that is independent of the trading and investing functions and comprised of senior management, provides oversight of control systems and valuation policies for securities, mortgage loans and derivatives. On a quarterly basis, this committee reviews and approves new transaction types and markets, ensures that observable market prices and market-based parameters are used for valuation, wherever possible, and determines that judgmental valuation adjustments, when applied, are based upon established policies and are applied consistently over time. This committee also provides oversight of the selection of independent third-party pricing providers and the controls and procedures to evaluate third-party pricing. Periodically, the Chief Accounting Officer reports to the Audit Committee of MetLife Insurance Company USA’s Board of Directors regarding compliance with fair value accounting standards. The Company reviews its valuation methodologies on an ongoing basis and revises those methodologies when necessary based on changing market conditions. Assurance is gained on the overall reasonableness and consistent application of input assumptions, valuation methodologies and compliance with fair value accounting standards through controls designed to ensure valuations represent an exit price. Several controls are utilized, 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, comparing fair value estimates to management’s knowledge of the current market, 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. The Company ensures that prices received from independent brokers, also referred to herein as “consensus pricing,” represent a reasonable estimate of fair value by considering such pricing relative to the Company’s knowledge of the current market dynamics and current pricing for similar financial instruments. While independent non-binding broker quotations are utilized, they are not used for a significant portion of the portfolio. For example, fixed maturity securities priced using independent non-binding broker quotations represent less than 1% of the total estimated fair value of fixed maturity securities and 4% of the total estimated fair value of Level 3 fixed maturity securities at June 30, 2016 . The Company also applies a formal process 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, or an internally developed valuation is prepared. Internally developed valuations of current estimated fair value, which reflect internal estimates of liquidity and nonperformance risks, compared with pricing received from the independent pricing services, did not produce material differences in the estimated fair values for the majority of the portfolio; accordingly, overrides were not material. This is, in part, because internal estimates of liquidity and nonperformance risks are generally based on available market evidence and estimates used by other market participants. In the absence of such market-based evidence, management’s best estimate is used. Securities, Short-term Investments and Long-term Debt of CSEs — FVO When available, the estimated fair value of these financial instruments is based on quoted prices in active markets that are readily and regularly obtainable. Generally, these are the most liquid of the Company’s securities holdings and valuation of these securities does not involve management’s judgment. When quoted prices in active markets are not available, the determination of estimated fair value is based on market standard valuation methodologies, giving priority to observable inputs. The significant inputs to the market standard valuation methodologies for certain types of securities with reasonable levels of price transparency are inputs that are observable in the market or can be derived principally from, or corroborated by, observable market data. When observable inputs are not available, the market standard valuation methodologies 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 can be based in large part on management’s judgment or estimation and cannot be supported by reference to market activity. Even though these inputs are unobservable, management believes they are consistent with what other market participants would use when pricing such securities and are considered appropriate given the circumstances. The estimated fair value of long-term debt of CSEs — FVO is determined on a basis consistent with the methodologies described herein for securities. The valuation of most instruments listed below is determined using independent pricing sources, matrix pricing, discounted cash flow methodologies or other similar techniques that use either observable market inputs or unobservable inputs. Instrument Level 2 Observable Inputs Level 3 Unobservable Inputs Fixed Maturity Securities U.S. corporate and Foreign corporate securities Valuation Techniques: Principally the market and income approaches. Valuation Techniques: Principally the market approach. Key Inputs: Key Inputs: • quoted prices in markets that are not active • illiquidity premium • benchmark yields; spreads off benchmark yields; new issuances; issuer rating • delta spread adjustments to reflect specific credit-related issues • trades of identical or comparable securities; duration • credit spreads • Privately-placed securities are valued using the additional key inputs: • quoted prices in markets that are not active for identical or similar securities that are less liquid and based on lower levels of trading activity than securities classified in Level 2 • 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 • independent non-binding broker quotations • delta spread adjustments to reflect specific credit-related issues U.S. government and agency, State and political subdivision and Foreign government securities Valuation Techniques: Principally the market approach. Valuation Techniques: Principally the market approach. Key Inputs: Key Inputs: • quoted prices in markets that are not active • independent non-binding broker quotations • benchmark U.S. Treasury yield or other yields • quoted prices in markets that are not active for identical or similar securities that are less liquid and based on lower levels of trading activity than securities classified in Level 2 • the spread off the U.S. Treasury yield curve for the identical security • issuer ratings and issuer spreads; broker-dealer quotes • credit spreads • comparable securities that are actively traded Structured Securities Valuation Techniques: Principally the market and income approaches. Valuation Techniques: Principally the market and income approaches. Key Inputs: Key Inputs: • quoted prices in markets that are not active • credit spreads • spreads for actively traded securities; spreads off benchmark yields • quoted prices in markets that are not active for identical or similar securities that are less liquid and based on lower levels of trading activity than securities classified in Level 2 • expected prepayment speeds and volumes • current and forecasted loss severity; ratings; geographic region • independent non-binding broker quotations • weighted average coupon and weighted average maturity • average delinquency rates; debt-service coverage ratios • issuance-specific information, including, but not limited to: • collateral type; structure of the security; vintage of the loans • payment terms of the underlying assets • payment priority within the tranche; deal performance Instrument Level 2 Observable Inputs Level 3 Unobservable Inputs Equity Securities Valuation Techniques: Principally the market approach. Valuation Techniques: Principally the market and income approaches. Key Input: Key Inputs: • quoted prices in markets that are not considered active • credit ratings; issuance structures • quoted prices in markets that are not active for identical or similar securities that are less liquid and based on lower levels of trading activity than securities classified in Level 2 • independent non-binding broker quotations Short-term investments • Short-term investments are of a similar nature and class to the fixed maturity and equity securities described above; accordingly, the valuation techniques and observable inputs used in their valuation are also similar to those described above. • Short-term investments are of a similar nature and class to the fixed maturity and equity securities described above; accordingly, the valuation techniques and unobservable inputs used in their valuation are also similar to those described above. Commercial mortgage loans held by CSEs — FVO Valuation Techniques: Principally the market approach. • N/A Key Input: • quoted securitization market price of the obligations of the CSEs determined principally by independent pricing services using observable inputs Separate Account Assets (1) Mutual funds without readily determinable fair values as prices are not published publicly Key Input: • N/A • quoted prices or reported NAV provided by the fund managers Other limited partnership interests • N/A Valuation Techniques: Valued giving consideration to the underlying holdings of the partnerships and by applying a premium or discount, if appropriate. Key Inputs: • liquidity; bid/ask spreads; performance record of the fund manager • other relevant variables that may impact the exit value of the particular partnership interest __________________ (1) Estimated fair value equals carrying value, based on the value of the underlying assets, including: mutual fund interests, fixed maturity securities, equity securities, derivatives, other limited partnership interests, short-term investments and cash and cash equivalents. Fixed maturity securities, equity securities, derivatives, short-term investments and cash and cash equivalents are similar in nature to the instruments described under “— Securities, Short-term Investments and Long-term Debt of CSEs — FVO” and “— Derivatives — Freestanding Derivatives.” Derivatives The estimated fair value of derivatives is determined through the use of quoted market prices for exchange-traded derivatives, or through the use of pricing models for OTC-bilateral and OTC-cleared derivatives. The determination of estimated fair value, when quoted market values are not available, is based on market standard valuation methodologies and inputs that management believes are consistent with what other market participants would use when pricing such instruments. Derivative valuations can be affected by changes in interest rates, foreign currency exchange rates, financial indices, credit spreads, default risk, nonperformance risk, volatility, liquidity and changes in estimates and assumptions used in the pricing models. The valuation controls and procedures for derivatives are described in “— Investments.” 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. Freestanding Derivatives Level 2 Valuation Techniques and Key Inputs: This level includes all types of derivatives utilized by the Company with the exception of exchange-traded derivatives included within Level 1 and those derivatives with unobservable inputs as described in Level 3. Level 3 Valuation Techniques and Key Inputs: These valuation methodologies generally use the same inputs as described in the corresponding sections for Level 2 measurements of derivatives. However, these derivatives result in Level 3 classification because one or more of the significant inputs are not observable in the market or cannot be derived principally from, or corroborated by, observable market data. Freestanding derivatives are principally valued using the income approach. Valuations of non-option-based derivatives utilize present value techniques, whereas valuations of option-based derivatives utilize option pricing models. Key inputs are as follows: Instrument Interest Rate Foreign Currency Exchange Rate Credit Equity Market Inputs common to Level 2 and Level 3 by instrument type • swap yield curves • swap yield curves • swap yield curves • swap yield curves • basis curves • basis curves • credit curves • spot equity index levels • interest rate volatility (1) • currency spot rates • recovery rates • dividend yield curves • cross currency basis curves • equity volatility (1) Level 3 • swap yield curves (2) • N/A • swap yield curves (2) • dividend yield curves (2) • basis curves (2) • credit curves (2) • equity volatility (1), (2) • repurchase rates • credit spreads • correlation between model inputs (1) • repurchase rates • independent non-binding broker quotations ______________ (1) Option-based only. (2) Extrapolation beyond the observable limits of the curve(s). Embedded Derivatives Embedded derivatives principally include certain direct, assumed and ceded variable annuity guarantees, equity or bond indexed crediting rates within certain annuity contracts, and those related to funds withheld on ceded reinsurance agreements. 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. GMWBs, GMABs and certain GMIBs contain embedded derivatives, which are measured at estimated fair value separately from the host variable 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 Company’s actuarial department calculates the fair value of these embedded derivatives, which are estimated as the present value of projected future benefits minus the present value of projected future fees using actuarial and capital market assumptions including expectations concerning 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. Capital market 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 market inputs. The nonperformance adjustment is determined by taking into consideration publicly available information relating to spreads in the secondary market for MetLife, Inc.’s debt, including related credit default swaps. These observable spreads are then adjusted, as necessary, to reflect the priority of these liabilities and the claims paying ability of the issuing insurance subsidiaries compared to MetLife, Inc. Risk margins are established to capture the non-capital market 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. These guarantees may be more costly than expected in volatile or declining equity markets. Market conditions including, but not limited to, changes in interest rates, equity indices, market volatility and foreign currency exchange rates; changes in nonperformance risk; and variations in actuarial assumptions regarding policyholder behavior, mortality and risk margins related to non-capital market inputs, may result in significant fluctuations in the estimated fair value of the guarantees that could materially affect net income. The Company assumed from an affiliated insurance company the risk associated with certain GMIBs. These embedded derivatives are included in policyholder account balances on the consolidated balance sheets with changes in estimated fair value reported in net derivative gains (losses). The value of the embedded derivatives on these assumed risks is determined using a methodology consistent with that described previously for the guarantees directly written by the Company. The Company ceded to an affiliate the risk associated with certain of the GMIBs, GMABs and GMWBs described above that are also accounted for as embedded derivatives. In addition to ceding risks associated with guarantees that are accounted for as embedded derivatives, the Company also cedes, to an affiliated company, certain directly written GMIBs that are accounted for as insurance (i.e., not as embedded derivatives), but where the reinsurance agreement contains an embedded derivative. These embedded derivatives are included within premiums, reinsurance and other receivables on the consolidated balance sheets with changes in estimated fair value reported in net derivative gains (losses). The value of the embedded derivatives on the ceded risk is determined using a methodology consistent with that described previously for the guarantees directly written by the Company with the exception of the input for nonperformance risk that reflects the credit of the reinsurer. The estimated fair value of the embedded derivatives within funds withheld related to certain ceded reinsurance is determined based on the change in estimated fair value of the underlying assets held by the Company in a reference portfolio backing the funds withheld liability. The estimated fair value of the underlying assets is determined as previously described in “— Investments — Securities, Short-term Investments and Long-term Debt of CSEs — FVO.” The estimated fair value of these embedded derivatives is included, along with their funds withheld hosts, in other liabilities on the consolidated balance sheets with changes in estimated fair value recorded in net derivative gains (losses). Changes in the credit spreads on the underlying assets, interest rates and market volatility may result in significant fluctuations in the estimated fair value of these embedded derivatives that could materially affect net income. The Company issues certain annuity contracts which allow the policyholder to participate in returns from equity indices. These equity indexed 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 the embedded equity indexed derivatives, based on the present value of future equity returns to the policyholder using actuarial and present value assumptions including expectations concerning policyholder behavior, is calculated by the Company’s actuarial department. The calculation is based on in-force business and uses standard capital market techniques, such as Black-Scholes, to calculate the value of the portion of the embedded derivative for which the terms are set. The portion of the embedded derivative covering the period beyond where terms are set is calculated as the present value of amounts expected to be spent to provide equity indexed returns in those periods. The valuation of these embedded derivatives also includes the establishment of a risk margin, as well as changes in nonperformance risk. Embedded Derivatives Within Asset and Liability Host Contracts Level 3 Valuation Techniques and Key Inputs: Direct and assumed guaranteed minimum benefits These embedded derivatives are principally valued using the income approach. Valuations are based on option pricing techniques, which utilize significant inputs that may include swap yield curves, currency exchange rates and implied volatilities. These embedded derivatives result in Level 3 classification because one or more of the significant inputs are not observable in the market or cannot be derived principally from, or corroborated by, observable market data. Significant unobservable inputs generally include: the extrapolation beyond observable limits of the swap yield curves and implied volatilities, actuarial assumptions for policyholder behavior and mortality and the potential variability in policyholder behavior and mortality, nonperformance risk and cost of capital for purposes of calculating the risk margin. Reinsurance ceded on certain guaranteed minimum benefits These embedded derivatives are principally valued using the income approach. The valuation techniques and significant market standard unobservable inputs used in their valuation are similar to those described above in “— Direct and assumed guaranteed minimum benefits” and also include counterparty credit spreads. Transfers between Levels Overall, transfers between levels occur when there are changes in the observability of inputs and market activity. Transfers into or out of any level are assumed to occur at the beginning of the period. Transfers between Levels 1 and 2: For assets and liabilities measured at estimated fair value and still held at June 30, 2016 , there were no transfers between Levels 1 and 2. For assets and liabilities measured at estimated fair value and still held at December 31, 2015 , transfers between Levels 1 and 2 were not significant. 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) The following table presents 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) at: June 30, 2016 December 31, 2015 Impact of Increase in Input on Estimated Valuation Significant Unobservable Inputs Weighted Range Weighted Fixed maturity securities (3) U.S. corporate and foreign corporate • Matrix pricing • Delta spread adjustments (4) (106) - 545 (2) (65) - 240 49 Decrease • Market pricing • Quoted prices (5) 13 - 884 321 13 - 780 314 Increase • Consensus pricing • Offered quotes (5) 6 - 95 83 68 - 95 80 Increase RMBS • Market pricing • Quoted prices (5) 36 - 112 90 29 - 292 93 Increase (6) ABS • Market pricing • Quoted prices (5) 97 - 103 101 97 - 103 100 Increase (6) • Consensus pricing • Offered quotes (5) 98 - 101 99 66 - 105 99 Increase (6) Derivatives Interest rate • Present value techniques • Swap yield (7) 231 - 231 317 - 317 Increase (8) • Repurchase rates (9) (16) - (3) Decrease (8) Credit • Present value techniques • Credit spreads (10) 97 - 100 — - — Decrease (8) • Consensus pricing • Offered quotes (11) Equity market • Present value techniques or option pricing models • Volatility (12) 16% - 35% 17% - 36% Increase (8) • Correlation (13) 70% - 70% 70% - 70% Embedded derivatives Direct, assumed and ceded guaranteed minimum benefits • Option pricing techniques • Mortality rates: Ages 0 - 40 0% - 0.09% 0% - 0.0 |
Equity
Equity | 6 Months Ended |
Jun. 30, 2016 | |
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 Unrealized Unrealized Foreign Total (In millions) Balance, beginning of period $ 2,372 $ 246 $ (30 ) $ 2,588 OCI before reclassifications 107 70 15 192 Deferred income tax benefit (expense) (51 ) (24 ) (2 ) (77 ) AOCI before reclassifications, net of income tax 2,428 292 (17 ) 2,703 Amounts reclassified from AOCI (23 ) (11 ) — (34 ) Deferred income tax benefit (expense) 8 4 — 12 Amounts reclassified from AOCI, net of income tax (15 ) (7 ) — (22 ) Balance, end of period $ 2,413 $ 285 $ (17 ) $ 2,681 Three Months Unrealized Unrealized Foreign Total (In millions) Balance, beginning of period $ 2,488 $ 245 $ (13 ) $ 2,720 OCI before reclassifications (1,519 ) (83 ) (20 ) (1,622 ) Deferred income tax benefit (expense) 536 28 7 571 AOCI before reclassifications, net of income tax 1,505 190 (26 ) 1,669 Amounts reclassified from AOCI 7 (3 ) — 4 Deferred income tax benefit (expense) (2 ) 1 — (1 ) Amounts reclassified from AOCI, net of income tax 5 (2 ) — 3 Balance, end of period $ 1,510 $ 188 $ (26 ) $ 1,672 Six Months Unrealized Unrealized Foreign Total (In millions) Balance, beginning of period $ 1,415 $ 239 $ (26 ) $ 1,628 OCI before reclassifications 1,520 87 11 1,618 Deferred income tax benefit (expense) (539 ) (30 ) (2 ) (571 ) AOCI before reclassifications, net of income tax 2,396 296 (17 ) 2,675 Amounts reclassified from AOCI 26 (17 ) — 9 Deferred income tax benefit (expense) (9 ) 6 — (3 ) Amounts reclassified from AOCI, net of income tax 17 (11 ) — 6 Balance, end of period $ 2,413 $ 285 $ (17 ) $ 2,681 Six Months Unrealized Unrealized Foreign Total (In millions) Balance, beginning of period $ 2,250 $ 183 $ (7 ) $ 2,426 OCI before reclassifications (1,126 ) 9 (30 ) (1,147 ) Deferred income tax benefit (expense) 398 (3 ) 11 406 AOCI before reclassifications, net of income tax 1,522 189 (26 ) 1,685 Amounts reclassified from AOCI (19 ) (1 ) — (20 ) Deferred income tax benefit (expense) 7 — — 7 Amounts reclassified from AOCI, net of income tax (12 ) (1 ) — (13 ) Balance, end of period $ 1,510 $ 188 $ (26 ) $ 1,672 __________________ (1) See Note 4 for information on offsets to investments related to future policy benefits, DAC, VOBA and DSI. Information regarding amounts reclassified out of each component of AOCI was as follows: AOCI Components Amounts Reclassified from AOCI Consolidated Statement of Operations and Comprehensive Income (Loss) Locations Three Months Six Months 2016 2015 2016 2015 (In millions) Net unrealized investment gains (losses): Net unrealized investment gains (losses) $ 21 $ (8 ) $ (25 ) $ 11 Net investment gains (losses) Net unrealized investment gains (losses) 2 2 (1 ) 13 Net investment income Net unrealized investment gains (losses) — (1 ) — (5 ) Net derivative gains (losses) Net unrealized investment gains (losses), before income tax 23 (7 ) (26 ) 19 Income tax (expense) benefit (8 ) 2 9 (7 ) Net unrealized investment gains (losses), net of income tax 15 (5 ) (17 ) 12 Unrealized gains (losses) on derivatives - cash flow hedges: Interest rate swaps $ 12 $ — $ 12 $ 1 Net derivative gains (losses) Interest rate swaps — 1 1 1 Net investment income Interest rate forwards (1 ) — 1 1 Net derivative gains (losses) Interest rate forwards 1 — 2 1 Net investment income Foreign currency swaps (1 ) 2 1 (2 ) Net derivative gains (losses) Credit forwards — — — (1 ) Net derivative gains (losses) Gains (losses) on cash flow hedges, before income tax 11 3 17 1 Income tax (expense) benefit (4 ) (1 ) (6 ) — Gains (losses) on cash flow hedges, net of income tax 7 2 11 1 Total reclassifications, net of income tax $ 22 $ (3 ) $ (6 ) $ 13 |
Other Expenses
Other Expenses | 6 Months Ended |
Jun. 30, 2016 | |
Other Income and Expenses [Abstract] | |
Other Expenses | 8. Other Expenses Information on other expenses was as follows: Three Months Six Months 2016 2015 2016 2015 (In millions) Compensation $ 98 $ 111 $ 220 $ 236 Commissions 109 150 272 314 Volume-related costs 31 12 62 59 Affiliated expense on ceded and assumed reinsurance 73 71 136 158 Capitalization of DAC (68 ) (86 ) (161 ) (185 ) Amortization of DAC and VOBA (282 ) 57 (103 ) 252 Interest expense on debt 19 18 36 36 Premium taxes, licenses and fees 13 14 29 22 Professional services 21 4 26 10 Rent and related expenses 15 13 29 30 Other 102 81 210 160 Total other expenses $ 131 $ 445 $ 756 $ 1,092 Affiliated Expenses Commissions, capitalization of DAC and amortization of DAC and VOBA include the impact of affiliated reinsurance transactions. See Note 10 for a discussion of affiliated expenses included in the table above. |
Contingencies, Commitments and
Contingencies, Commitments and Guarantees | 6 Months Ended |
Jun. 30, 2016 | |
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 and/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. 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 reasonably estimated at June 30, 2016 . 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. As of June 30, 2016 , the aggregate range of reasonably possible losses in excess of amounts accrued for these matters was not material for the Company. 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. Unclaimed Property Litigation On November 14, 2012, the West Virginia Treasurer filed an action against MetLife Investors USA Insurance Company in West Virginia state court ( West Virginia ex rel. John D. Perdue v. MetLife Investors USA Insurance Company, Circuit Court of Putnam County, Civil Action No. 12-C-363 ) alleging that MetLife Investors USA Insurance Company violated the West Virginia Uniform Unclaimed Property Act (the “Act”), seeking to compel compliance with the Act, and seeking payment of unclaimed property, interest, and penalties. On December 28, 2012, the Treasurer filed a substantially identical suit against MetLife Insurance Company of Connecticut ( West Virginia ex rel. John D. Perdue v. MetLife Insurance Company of Connecticut, Circuit Court of Putnam County, Civil Action No. 12-C-430 ). MetLife Insurance Company USA, successor by merger to these defendants, intends to defend these actions vigorously. 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, mutual funds 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. Summary Various litigation, 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 and/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 and/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. Commitments Mortgage Loan Commitments The Company commits to lend funds under mortgage loan commitments. The amounts of these mortgage loan commitments were $84 million and $124 million at June 30, 2016 and December 31, 2015 , 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 $992 million and $1.0 billion at June 30, 2016 and December 31, 2015 , respectively. Other Commitments The Company has entered into collateral arrangements with affiliates which require the transfer of collateral in connection with secured demand notes. At both June 30, 2016 and December 31, 2015 , the Company had agreed to fund up to $20 million of cash upon the request by these affiliates and had transferred collateral consisting of various securities with a fair market value of $27 million and $25 million at June 30, 2016 and December 31, 2015 , respectively, to custody accounts to secure the demand notes. Each of these affiliates is permitted by contract to sell or re-pledge this collateral. 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 $223 million , with a cumulative maximum of $229 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 by-laws. 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 $2 million at both June 30, 2016 and December 31, 2015 , for indemnities, guarantees and commitments. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 10. Related Party Transactions Service Agreements The Company has entered into various agreements with affiliates for services necessary to conduct its activities. Typical services provided under these agreements include personnel, policy administrative functions and distribution services. For certain agreements, charges are based on various performance measures or activity-based costing. The bases for such charges are modified and adjusted by management when necessary or appropriate to reflect fairly and equitably the actual cost incurred by the Company and/or affiliate. Expenses and fees incurred with affiliates related to these agreements, recorded in other expenses, were $388 million and $758 million for the three months and six months ended June 30, 2016 , respectively, and $365 million and $756 million for the three months and six months ended June 30, 2015 , respectively. Revenues received from affiliates related to these agreements, recorded in universal life and investment-type product policy fees, were $56 million and $110 million for the three months and six months ended June 30, 2016 , respectively, and $63 million and $126 million for the three months and six months ended June 30, 2015 , respectively. Revenues received from affiliates related to these agreements, recorded in other revenues, were $45 million and $94 million for the three months and six months ended June 30, 2016 , respectively, and $54 million and $104 million for the three months and six months ended June 30, 2015 , respectively. The Company had net receivables from affiliates, related to the items discussed above, of $45 million and $136 million at June 30, 2016 and December 31, 2015 , respectively. See Note 4 for additional information on related party transactions. Sales Distribution Services In July 2016, MetLife, Inc. completed the sale to MassMutual of MetLife’s U.S. Retail advisor force and certain assets associated with the MetLife Premier Client Group, including all of the issued and outstanding shares of MetLife’s affiliated broker-dealer, MetLife Securities, Inc., a wholly-owned subsidiary of MetLife, Inc. MassMutual assumed all of the liabilities related to such assets and that arise or occur after the closing of the sale. Related Party Reinsurance Transactions The Company has reinsurance agreements with certain of MetLife, Inc.’s subsidiaries, including MLIC, MetLife Reinsurance Company of South Carolina, First MetLife Investors Insurance Company, General American Life Insurance Company, MetLife Europe Limited, MetLife Reinsurance Company of Vermont, New England Life Insurance Company, MetLife Reinsurance Company of Delaware (“MRD”), Delaware American Life Insurance Company and American Life Insurance Company, all of which are related parties. Information regarding the significant effects of affiliated reinsurance included on the consolidated statements of operations and comprehensive income (loss) was as follows: Three Months Six Months 2016 2015 2016 2015 (In millions) Premiums Reinsurance assumed $ 7 $ 12 $ 52 $ 37 Reinsurance ceded (237 ) (215 ) (464 ) (415 ) Net premiums $ (230 ) $ (203 ) $ (412 ) $ (378 ) Universal life and investment-type product policy fees Reinsurance assumed $ 30 $ 33 $ 59 $ 64 Reinsurance ceded (74 ) (99 ) (181 ) (186 ) Net universal life and investment-type product policy fees $ (44 ) $ (66 ) $ (122 ) $ (122 ) Other revenues Reinsurance assumed $ — $ — $ — $ — Reinsurance ceded 340 64 391 122 Net other revenues $ 340 $ 64 $ 391 $ 122 Policyholder benefits and claims Reinsurance assumed $ 14 $ 31 $ 58 $ 66 Reinsurance ceded (457 ) (244 ) (694 ) (484 ) Net policyholder benefits and claims $ (443 ) $ (213 ) $ (636 ) $ (418 ) Interest credited to policyholder account balances Reinsurance assumed $ 19 $ 19 $ 38 $ 38 Reinsurance ceded (36 ) (34 ) (72 ) (71 ) Net interest credited to policyholder account balances $ (17 ) $ (15 ) $ (34 ) $ (33 ) Other expenses Reinsurance assumed $ (10 ) $ 9 $ 21 $ 24 Reinsurance ceded (44 ) 33 (44 ) 83 Net other expenses $ (54 ) $ 42 $ (23 ) $ 107 Information regarding the significant effects of affiliated reinsurance included on the consolidated balance sheets was as follows at: June 30, 2016 December 31, 2015 Assumed Ceded Assumed Ceded (In millions) Assets Premiums, reinsurance and other receivables $ 77 $ 9,173 $ 129 $ 12,746 Deferred policy acquisition costs and value of business acquired 157 (773 ) 120 (861 ) Total assets $ 234 $ 8,400 $ 249 $ 11,885 Liabilities Future policy benefits $ 635 $ (245 ) $ 630 $ (70 ) Policyholder account balances 1,297 — 897 — Other policy-related balances 1,740 707 1,785 755 Other liabilities 19 5,349 27 4,691 Total liabilities $ 3,691 $ 5,811 $ 3,339 $ 5,376 The Company assumes risks from affiliates related to guaranteed minimum benefit guarantees written directly by the affiliates. These assumed reinsurance agreements contain embedded derivatives and changes in their estimated fair value are also included within net derivative gains (losses). The embedded derivatives associated with these agreements are included within policyholder account balances and were $1.3 billion and $897 million at June 30, 2016 and December 31, 2015 , respectively. Net derivative gains (losses) associated with the embedded derivatives were ($259) million and ($395) million for the three months and six months ended June 30, 2016 , respectively, and $131 million and $68 million for the three months and six months ended June 30, 2015, respectively. The Company ceded two blocks of business to two affiliates on a 90% coinsurance with funds withheld basis. Certain contractual features of these agreements qualify as embedded derivatives, which are separately accounted for at estimated fair value on the Company’s consolidated balance sheets. The embedded derivatives related to the funds withheld associated with these reinsurance agreements are included within other liabilities and increased the funds withheld balance by $603 million and $244 million at June 30, 2016 and December 31, 2015 , respectively. Net derivative gains (losses) associated with these embedded derivatives were ($193) million and ($359) million for the three months and six months ended June 30, 2016 , respectively, and $218 million and $142 million for the three months and six months ended June 30, 2015, respectively. The Company ceded risks to an affiliate related to guaranteed minimum benefit guarantees written directly by the Company. This ceded reinsurance agreement contains embedded derivatives and changes in the estimated fair value are also included within net derivative gains (losses). The embedded derivative associated with this cession is included within premiums, reinsurance and other receivables and were $5 million and $4 million at June 30, 2016 and December 31, 2015 , respectively. Net derivative gains (losses) associated with the embedded derivative were less than $1 million and $1 million for the three months and six months ended June 30, 2016 , respectively, and less than $1 million for both the three months and six months ended June 30, 2015. In December 2015, the Company entered into a reinsurance agreement to cede one block of business to MRD on a 90% coinsurance with funds withheld basis. This agreement covers certain term life policies issued in 2015 by the Company. This agreement transfers risk to MRD and, therefore, is accounted for as reinsurance. As a result of the agreement, affiliated reinsurance recoverables, included in premiums, reinsurance and other receivables, were $68 million and $126 million at June 30, 2016 and December 31, 2015 , respectively. The Company also recorded a funds withheld liability and other reinsurance payables, included in other liabilities, which were $19 million and $79 million at June 30, 2016 and December 31, 2015 , respectively. The Company’s consolidated statement of operations and comprehensive income (loss) includes a loss for this agreement of $4 million and income for this agreement of $38 million for the three months and six months ended June 30, 2016 , respectively. In December 2014, the Company entered into a reinsurance agreement to cede two blocks of business to MRD on a 90% coinsurance with funds withheld basis. This agreement covers certain term and certain universal life policies issued in 2014 by the Company. This agreement transfers risk to MRD and, therefore, is accounted for as reinsurance. As a result of the agreement, affiliated reinsurance recoverables, included in premiums, reinsurance and other receivables, were $114 million and $81 million at June 30, 2016 and December 31, 2015 , respectively. The Company also recorded a funds withheld liability and other reinsurance payables, included in other liabilities, which were $58 million and $23 million at June 30, 2016 and December 31, 2015 , respectively. The Company’s consolidated statement of operations and comprehensive income (loss) includes income for this agreement of $3 million and a loss for this agreement of $49 million for the three months and six months ended June 30, 2016 , respectively, and a loss for this agreement of $8 million and $11 million for the three months and six months ended June 30, 2015, respectively. In April 2016, the Company recaptured risks related to certain single premium deferred annuity contracts previously reinsured to MLIC, an affiliate. As a result of this recapture, the significant effects to the Company were an increase in investments and cash and cash equivalents of $4.3 billion and an increase in DAC of $87 million , offset by a decrease in premiums, reinsurance and other receivables of $4.0 billion . The Company recognized a gain of $246 million , net of income tax, as a result of this reinsurance termination. |
Business, Basis of Presentati17
Business, Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Use of Estimates | 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 estimates. |
Consolidation of Subsidiaries | The accompanying interim condensed consolidated financial statements include the accounts of MetLife Insurance Company USA and its subsidiaries, as well as partnerships and joint ventures in which the Company has control, and variable interest entities (“VIEs”) for which the Company is the primary beneficiary. Intercompany accounts and transactions have been eliminated. The Company uses the equity method of accounting for equity securities when it has significant influence or at least 20% interest and for real estate joint ventures and other limited partnership interests (“investees”) when it has more than a minor ownership interest or more than a minor influence over the investee’s operations, but does not have a controlling financial interest. 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. The Company uses the cost method of accounting for investments in which it has virtually no influence over the investee’s operations. Since the Company is a member of a controlled group of affiliated companies, its results may not be indicative of those of a stand-alone 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, 2015 consolidated balance sheet data was derived from audited consolidated financial statements included in MetLife Insurance Company USA’s Annual Report on Form 10-K for the year ended December 31, 2015 (the “2015 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 2015 Annual Report. |
Investments | 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. Maturities of Fixed Maturity Securities The Company defines delinquency 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. Past Due and Interest Accrual Status of Mortgage Loans Variable Interest Entities The Company is involved with certain legal entities that are VIEs. In certain instances, the Company holds both the power to direct the most significant activities of the entity, as well as an economic interest in the entity and, as such, is deemed to be the primary beneficiary or consolidator of the entity. The determination of the VIE’s primary beneficiary requires an evaluation of the contractual and implied rights and obligations associated with each party’s relationship with or involvement in the entity. |
Derivatives | Accounting for Derivatives Freestanding Derivatives Freestanding derivatives are carried on the Company’s balance sheet either as assets within other invested assets or as liabilities within other liabilities at estimated fair value. The Company does not offset the estimated fair value amounts recognized for derivatives executed with the same counterparty under the same master netting agreement. Accruals on derivatives are generally recorded in accrued investment income or within other liabilities. However, accruals that are not scheduled to settle within one year are included with the derivatives carrying value in other invested assets or other liabilities. If a derivative is not designated as an accounting hedge or its use in managing risk does not qualify for hedge accounting, changes in the estimated fair value of the derivative are reported in net derivative gains (losses) except as follows: Statement of Operations Presentation: Derivative: Policyholder benefits and claims • Economic hedges of variable annuity guarantees included in future policy benefits Net investment income • Economic hedges of equity method investments in joint ventures Hedge Accounting To qualify for hedge accounting, at the inception of the hedging relationship, the Company formally documents its risk management objective and strategy for undertaking the hedging transaction, as well as its designation of the hedge. Hedge designation and financial statement presentation of changes in estimated fair value of the hedging derivatives are as follows: • Fair value hedge (a hedge of the estimated fair value of a recognized asset or liability) - in net derivative gains (losses), consistent with the change in estimated fair value of the hedged item attributable to the designated risk being hedged. • Cash flow hedge (a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability) - effectiveness in OCI (deferred gains or losses on the derivative are reclassified into the statement of operations when the Company’s earnings are affected by the variability in cash flows of the hedged item); ineffectiveness in net derivative gains (losses). The changes in estimated fair values of the hedging derivatives are exclusive of any accruals that are separately reported on the statement of operations within interest income or interest expense to match the location of the hedged item. In its hedge documentation, the Company sets forth how the hedging instrument is expected to hedge the designated risks related to the hedged item and sets forth the method that will be used to retrospectively and prospectively assess the hedging instrument’s effectiveness and the method that will be used to measure ineffectiveness. A derivative designated as a hedging instrument must be assessed as being highly effective in offsetting the designated risk of the hedged item. Hedge effectiveness is formally assessed at inception and at least quarterly throughout the life of the designated hedging relationship. Assessments of hedge effectiveness and measurements of ineffectiveness are also subject to interpretation and estimation and different interpretations or estimates may have a material effect on the amount reported in net income. The Company discontinues hedge accounting prospectively when: (i) it is determined that the derivative is no longer highly effective in offsetting changes in the estimated fair value or cash flows of a hedged item; (ii) the derivative expires, is sold, terminated, or exercised; (iii) it is no longer probable that the hedged forecasted transaction will occur; or (iv) the derivative is de-designated as a hedging instrument. When hedge accounting is discontinued because it is determined that the derivative is not highly effective in offsetting changes in the estimated fair value or cash flows of a hedged item, the derivative continues to be carried on the balance sheet at its estimated fair value, with changes in estimated fair value recognized in net derivative gains (losses). The carrying value of the hedged recognized asset or liability under a fair value hedge is no longer adjusted for changes in its estimated fair value due to the hedged risk, and the cumulative adjustment to its carrying value is amortized into income over the remaining life of the hedged item. Provided the hedged forecasted transaction is still probable of occurrence, the changes in estimated fair value of derivatives recorded in OCI related to discontinued cash flow hedges are released into the statement of operations when the Company’s earnings are affected by the variability in cash flows of the hedged item. When hedge accounting is discontinued because it is no longer probable that the forecasted transactions will occur on the anticipated date or within two months of that date, the derivative continues to be carried on the balance sheet at its estimated fair value, with changes in estimated fair value recognized currently in net derivative gains (losses). Deferred gains and losses of a derivative recorded in OCI pursuant to the discontinued cash flow hedge of a forecasted transaction that is no longer probable are recognized immediately in net derivative gains (losses). In all other situations in which hedge accounting is discontinued, the derivative is carried at its estimated fair value on the balance sheet, with changes in its estimated fair value recognized in the current period as net derivative gains (losses). Embedded Derivatives The Company sells variable annuities and issues certain insurance products and investment contracts and is a party to certain reinsurance agreements that have embedded derivatives. The Company assesses each identified embedded derivative to determine whether it is required to be bifurcated. The embedded derivative is bifurcated from the host contract and accounted for as a freestanding derivative if: • the combined instrument is not accounted for in its entirety at estimated fair value with changes in estimated fair value recorded in earnings; • the terms of the embedded derivative are not clearly and closely related to the economic characteristics of the host contract; and • a separate instrument with the same terms as the embedded derivative would qualify as a derivative instrument. Such embedded derivatives are carried on the balance sheet at estimated fair value with the host contract and changes in their estimated fair value are generally reported in net derivative gains (losses), except for those in policyholder benefits and claims related to ceded reinsurance of GMIB. If the Company is unable to properly identify and measure an embedded derivative for separation from its host contract, the entire contract is carried on the balance sheet at estimated fair value, with changes in estimated fair value recognized in the current period in net investment gains (losses) or net investment income. Additionally, the Company may elect to carry an entire contract on the balance sheet at estimated fair value, with changes in estimated fair value recognized in the current period in net investment gains (losses) or net investment income if that contract contains an embedded derivative that requires bifurcation. At inception, the Company attributes to the embedded derivative a portion of the projected future guarantee fees to be collected from the policyholder equal to the present value of projected future guaranteed benefits. Any additional fees represent “excess” fees and are reported in universal life and investment-type product policy fees. Derivative Strategies 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 types of derivatives the Company uses include swaps, forwards, futures and option contracts. To a lesser extent, the Company uses credit default swaps to synthetically replicate investment risks and returns which are not readily available in the cash market. The Company designates and accounts for interest rate swaps to convert fixed rate assets and liabilities to floating rate assets and liabilities as fair value hedges when they have met the requirements of fair value hedging. The Company designates and accounts for the following as cash flow hedges when they have met the requirements of cash flow hedging: (i) interest rate swaps to convert floating rate assets and liabilities to fixed rate assets and liabilities; (ii) foreign currency swaps to hedge the foreign currency cash flow exposure of foreign currency denominated assets and liabilities; (iii) interest rate forwards and credit forwards to lock in the price to be paid for forward purchases of investments; and (iv) interest rate swaps and interest rate forwards to hedge the forecasted purchases of fixed-rate investments. The Company may be exposed to credit-related losses in the event of nonperformance by its counterparties to derivatives. Generally, the current credit exposure of the Company’s derivatives is limited to the net positive estimated fair value of derivatives at the reporting date after taking into consideration the existence of master netting or similar agreements and any collateral received pursuant to such agreements. |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Segment Reporting Information, by Segment | Operating Results Three Months Ended June 30, 2016 Retail Corporate Benefit Funding Corporate & Other Total Adjustments Total Consolidated (In millions) Revenues Premiums $ 196 $ 2 $ 4 $ 202 $ — $ 202 Universal life and investment-type product policy fees 598 10 — 608 70 678 Net investment income 557 186 (2 ) 741 (63 ) 678 Other revenues 396 1 — 397 — 397 Net investment gains (losses) — — — — 15 15 Net derivative gains (losses) — — — — (3,230 ) (3,230 ) Total revenues 1,747 199 2 1,948 (3,208 ) (1,260 ) Expenses Policyholder benefits and claims 564 104 10 678 135 813 Interest credited to policyholder account balances 215 23 — 238 1 239 Capitalization of DAC (55 ) — (13 ) (68 ) — (68 ) Amortization of DAC and VOBA 372 — 5 377 (659 ) (282 ) Interest expense on debt — — 17 17 2 19 Other expenses 418 6 27 451 11 462 Total expenses 1,514 133 46 1,693 (510 ) 1,183 Provision for income tax expense (benefit) 47 23 (17 ) 53 (939 ) (886 ) Operating earnings $ 186 $ 43 $ (27 ) 202 Adjustments to: Total revenues (3,208 ) Total expenses 510 Provision for income tax (expense) benefit 939 Net income (loss) $ (1,557 ) $ (1,557 ) Operating Results Three Months Ended June 30, 2015 Retail Corporate Benefit Funding Corporate & Other Total Adjustments Total Consolidated (In millions) Revenues Premiums $ 223 $ 3 $ 27 $ 253 $ — $ 253 Universal life and investment-type product policy fees 636 8 — 644 67 711 Net investment income 523 231 (11 ) 743 (54 ) 689 Other revenues 128 1 1 130 — 130 Net investment gains (losses) — — — — (5 ) (5 ) Net derivative gains (losses) — — — — (17 ) (17 ) Total revenues 1,510 243 17 1,770 (9 ) 1,761 Expenses Policyholder benefits and claims 349 109 21 479 103 582 Interest credited to policyholder account balances 233 28 — 261 1 262 Capitalization of DAC (70 ) — (16 ) (86 ) — (86 ) Amortization of DAC and VOBA 159 — 5 164 (107 ) 57 Interest expense on debt — — 17 17 1 18 Other expenses 418 4 34 456 — 456 Total expenses 1,089 141 61 1,291 (2 ) 1,289 Provision for income tax expense (benefit) 119 35 (20 ) 134 (2 ) 132 Operating earnings $ 302 $ 67 $ (24 ) 345 Adjustments to: Total revenues (9 ) Total expenses 2 Provision for income tax (expense) benefit 2 Net income (loss) $ 340 $ 340 Operating Results Six Months Ended June 30, 2016 Retail Corporate Benefit Funding Corporate & Other Total Adjustments Total Consolidated (In millions) Revenues Premiums $ 414 $ 14 $ 83 $ 511 $ — $ 511 Universal life and investment-type product policy fees 1,161 25 — 1,186 136 1,322 Net investment income 1,068 376 (11 ) 1,433 (128 ) 1,305 Other revenues 504 2 — 506 — 506 Net investment gains (losses) — — — — (33 ) (33 ) Net derivative gains (losses) — — — — (3,235 ) (3,235 ) Total revenues 3,147 417 72 3,636 (3,260 ) 376 Expenses Policyholder benefits and claims 973 209 53 1,235 159 1,394 Interest credited to policyholder account balances 429 46 — 475 2 477 Capitalization of DAC (130 ) — (31 ) (161 ) — (161 ) Amortization of DAC and VOBA 486 — 12 498 (601 ) (103 ) Interest expense on debt — — 34 34 2 36 Other expenses 879 17 63 959 25 984 Total expenses 2,637 272 131 3,040 (413 ) 2,627 Provision for income tax expense (benefit) 117 50 (27 ) 140 (995 ) (855 ) Operating earnings $ 393 $ 95 $ (32 ) 456 Adjustments to: Total revenues (3,260 ) Total expenses 413 Provision for income tax (expense) benefit 995 Net income (loss) $ (1,396 ) $ (1,396 ) Operating Results Six Months Ended June 30, 2015 Retail Corporate Benefit Funding Corporate & Other Total Adjustments Total Consolidated (In millions) Revenues Premiums $ 494 $ 7 $ 35 $ 536 $ — $ 536 Universal life and investment-type product policy fees 1,279 17 — 1,296 133 1,429 Net investment income 1,027 449 (37 ) 1,439 (115 ) 1,324 Other revenues 246 2 2 250 — 250 Net investment gains (losses) — — — — 37 37 Net derivative gains (losses) — — — — 68 68 Total revenues 3,046 475 — 3,521 123 3,644 Expenses Policyholder benefits and claims 734 206 42 982 192 1,174 Interest credited to policyholder account balances 461 56 — 517 2 519 Capitalization of DAC (144 ) — (41 ) (185 ) — (185 ) Amortization of DAC and VOBA 323 — 12 335 (83 ) 252 Interest expense on debt — — 34 34 2 36 Other expenses 890 16 83 989 — 989 Total expenses 2,264 278 130 2,672 113 2,785 Provision for income tax expense (benefit) 217 68 (54 ) 231 4 235 Operating earnings $ 565 $ 129 $ (76 ) 618 Adjustments to: Total revenues 123 Total expenses (113 ) Provision for income tax (expense) benefit (4 ) Net income (loss) $ 624 $ 624 The following table presents total assets with respect to the Company’s segments, as well as Corporate & Other, at: June 30, 2016 December 31, 2015 (In millions) Retail $ 177,712 $ 167,142 Corporate Benefit Funding 23,591 25,043 Corporate & Other 13,534 10,177 Total $ 214,837 $ 202,362 |
Insurance (Tables)
Insurance (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Insurance [Abstract] | |
Guarantees related to Annuity, Universal and Variable Life Contracts | Information regarding the Company’s guarantee exposure was as follows at: June 30, 2016 December 31, 2015 In the Event of Death At Annuitization In the Event of Death At Annuitization (Dollars in millions) Annuity Contracts (1), (2): Variable Annuity Guarantees: Total account value (3) $ 103,043 $ 58,197 $ 103,830 $ 58,615 Separate account value $ 98,022 $ 56,830 $ 98,897 $ 57,284 Net amount at risk $ 7,394 (4) $ 3,079 (5) $ 8,168 (4) $ 2,088 (5) Average attained age of contractholders 67 years 67 years 66 years 66 years June 30, 2016 December 31, 2015 Secondary Guarantees (Dollars in millions) Universal and Variable Life Contracts: Total account value (3) $ 7,011 $ 6,919 Net amount at risk (6) $ 90,534 $ 90,940 Average attained age of policyholders 60 years 59 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 7 of the Notes to the Consolidated Financial Statements included in the 2015 Annual Report for a discussion of certain living and death benefit guarantees which have been reinsured. (3) Includes the contractholder’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 contractholders 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 contractholders 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) | 6 Months Ended |
Jun. 30, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Fixed Maturity and Equity Securities Available-for-Sale | The following table presents the fixed maturity and equity securities available-for-sale (“AFS”) by sector. Redeemable preferred stock is reported within U.S. corporate and foreign corporate fixed maturity securities and non-redeemable preferred stock is reported within equity securities. Included within fixed maturity securities are structured securities including residential mortgage-backed securities (“RMBS”), asset-backed securities (“ABS”) and commercial mortgage-backed securities (“CMBS”) (collectively, “Structured Securities”). June 30, 2016 December 31, 2015 Cost or Gross Unrealized Estimated Cost or Gross Unrealized Estimated Gains Temporary OTTI Gains Temporary OTTI (In millions) Fixed maturity securities: U.S. corporate $ 17,349 $ 1,798 $ 130 $ — $ 19,017 $ 16,160 $ 979 $ 393 $ — $ 16,746 U.S. government and agency 14,927 2,838 — — 17,765 12,562 1,297 53 — 13,806 RMBS 10,398 291 84 21 10,584 8,391 201 95 19 8,478 Foreign corporate 5,671 306 121 — 5,856 4,995 153 194 — 4,954 State and political subdivision 2,620 572 1 — 3,191 2,398 321 13 1 2,705 ABS 3,173 21 23 — 3,171 2,694 14 34 — 2,674 CMBS (1) 3,333 148 5 (1 ) 3,477 2,303 20 23 (1 ) 2,301 Foreign government 826 157 1 — 982 651 104 10 — 745 Total fixed maturity securities $ 58,297 $ 6,131 $ 365 $ 20 $ 64,043 $ 50,154 $ 3,089 $ 815 $ 19 $ 52,409 Equity securities: Non-redeemable preferred stock $ 201 $ 18 $ 13 $ — $ 206 $ 217 $ 16 $ 9 $ — $ 224 Common stock 161 23 — — 184 167 23 5 — 185 Total equity securities $ 362 $ 41 $ 13 $ — $ 390 $ 384 $ 39 $ 14 $ — $ 409 __________________ (1) The noncredit loss component of other-than-temporary impairment (“OTTI”) losses for CMBS was in an unrealized gain position of $1 million at both June 30, 2016 and December 31, 2015 , due to increases in estimated fair value subsequent to initial recognition of noncredit losses on such securities. See also “— Net Unrealized Investment Gains (Losses).” |
Available-for-sale fixed maturity securities by contractual maturity date | The amortized cost and estimated fair value of fixed maturity securities, by contractual maturity date, were as follows at June 30, 2016 : Due in One Year or Less Due After One Year Through Five Years Due After Five Years Through Ten Years Due After Ten Years Structured Securities Total Fixed Maturity Securities (In millions) Amortized cost $ 1,898 $ 12,214 $ 9,467 $ 17,814 $ 16,904 $ 58,297 Estimated fair value $ 1,912 $ 12,737 $ 9,971 $ 22,191 $ 17,232 $ 64,043 |
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale | The following table presents the estimated fair value and gross unrealized losses of fixed maturity and equity securities AFS in an unrealized loss position, aggregated by sector and by length of time that the securities have been in a continuous unrealized loss position. June 30, 2016 December 31, 2015 Less than 12 Months Equal to or Greater than 12 Months Less than 12 Months Equal to or Greater than 12 Months Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses (Dollars in millions) Fixed maturity securities: U.S. corporate $ 906 $ 27 $ 1,005 $ 103 $ 4,569 $ 278 $ 571 $ 115 U.S. government and agency 50 — — — 4,037 53 — — RMBS 1,318 48 842 57 4,305 73 495 41 Foreign corporate 687 27 712 94 1,650 96 605 98 State and political subdivision 47 1 6 — 373 12 19 2 ABS 1,017 11 703 12 1,818 28 194 6 CMBS 150 1 179 3 1,346 21 44 1 Foreign government 6 — 12 1 130 9 6 1 Total fixed maturity securities $ 4,181 $ 115 $ 3,459 $ 270 $ 18,228 $ 570 $ 1,934 $ 264 Equity securities: Non-redeemable preferred stock $ 19 $ 2 $ 40 $ 11 $ 25 $ 1 $ 40 $ 8 Common stock 2 — 1 — 6 5 1 — Total equity securities $ 21 $ 2 $ 41 $ 11 $ 31 $ 6 $ 41 $ 8 Total number of securities in an unrealized loss position 751 592 1,850 394 |
Disclosure of Mortgage Loans Net of Valuation Allowance | Mortgage loans are summarized as follows at: June 30, 2016 December 31, 2015 Carrying Value % of Total Carrying Value % of Total (Dollars in millions) Mortgage loans: Commercial $ 5,971 73.0 % $ 5,331 73.4 % Agricultural 1,557 19.0 1,460 20.1 Residential 533 6.5 335 4.6 Subtotal (1) 8,061 98.5 7,126 98.1 Valuation allowances (41 ) (0.5 ) (36 ) (0.5 ) Subtotal mortgage loans, net 8,020 98.0 7,090 97.6 Commercial mortgage loans held by CSEs - FVO 159 2.0 172 2.4 Total mortgage loans, net $ 8,179 100.0 % $ 7,262 100.0 % __________________ (1) Purchases of mortgage loans were $192 million and $231 million for the three months and six months ended June 30, 2016 , respectively. Purchases of mortgage loans were $40 million for both the three months and six months ended June 30, 2015 |
Disclosure of mortgage loans held-for-investment and valuation allowances by method of evaluation for credit loss | Mortgage loans by portfolio segment, by method of evaluation of credit loss, impaired mortgage loans including those modified in a troubled debt restructuring, and the related valuation allowances, were as follows at: Evaluated Individually for Credit Losses Evaluated Collectively for Credit Losses Impaired Loans Impaired Loans with a Valuation Allowance Impaired Loans without a Valuation Allowance Unpaid Principal Balance Recorded Investment Valuation Unpaid Principal Balance Recorded Recorded Valuation Carrying (In millions) June 30, 2016 Commercial $ — $ — $ — $ — $ — $ 5,971 $ 32 $ — Agricultural 4 3 — — — 1,554 5 3 Residential — — — — — 533 4 — Total $ 4 $ 3 $ — $ — $ — $ 8,058 $ 41 $ 3 December 31, 2015 Commercial $ — $ — $ — $ — $ — $ 5,331 $ 28 $ — Agricultural 4 3 — — — 1,457 5 3 Residential — — — — — 335 3 — Total $ 4 $ 3 $ — $ — $ — $ 7,123 $ 36 $ 3 |
Allowance for Credit Losses on Financing Receivables | The changes in the valuation allowance, by portfolio segment, were as follows: Six Months 2016 2015 Commercial Agricultural Residential Total Commercial Agricultural Residential Total (In millions) Balance, beginning of period $ 28 $ 5 $ 3 $ 36 $ 21 $ 4 $ — $ 25 Provision (release) 4 — 1 5 4 — 1 5 Balance, end of period $ 32 $ 5 $ 4 $ 41 $ 25 $ 4 $ 1 $ 30 |
Components of net unrealized investment gains (losses) included in accumulated other comprehensive income (loss) | The components of net unrealized investment gains (losses), included in AOCI, were as follows: June 30, 2016 December 31, 2015 (In millions) Fixed maturity securities $ 5,757 $ 2,265 Fixed maturity securities with noncredit OTTI losses included in AOCI (20 ) (19 ) Total fixed maturity securities 5,737 2,246 Equity securities 71 54 Derivatives 438 368 Other 84 78 Subtotal 6,330 2,746 Amounts allocated from: Future policy benefits (1,979 ) (56 ) DAC and VOBA related to noncredit OTTI losses recognized in AOCI (1 ) (1 ) DAC, VOBA and DSI (243 ) (198 ) Subtotal (2,223 ) (255 ) Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI 8 7 Deferred income tax benefit (expense) (1,417 ) (844 ) Net unrealized investment gains (losses) $ 2,698 $ 1,654 The changes in net unrealized investment gains (losses) were as follows: Six Months (In millions) Balance, beginning of period $ 1,654 Fixed maturity securities on which noncredit OTTI losses have been recognized (1 ) Unrealized investment gains (losses) during the period 3,585 Unrealized investment gains (losses) relating to: Future policy benefits (1,923 ) DAC, VOBA and DSI (45 ) Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI 1 Deferred income tax benefit (expense) (573 ) Balance, end of period $ 2,698 Change in net unrealized investment gains (losses) $ 1,044 |
Other than temporary impairment losses recognized in earnings | The changes in fixed maturity securities with noncredit OTTI losses included in AOCI were as follows: Six Months Year (In millions) Balance, beginning of period $ (19 ) $ (34 ) Noncredit OTTI losses and subsequent changes recognized 3 9 Securities sold with previous noncredit OTTI loss 3 17 Subsequent changes in estimated fair value (7 ) (11 ) Balance, end of period $ (20 ) $ (19 ) |
Securities Lending | Elements of the securities lending program are presented below at: June 30, 2016 December 31, 2015 (In millions) Securities on loan: (1) Amortized cost $ 8,149 $ 8,047 Estimated fair value $ 9,983 $ 8,830 Cash collateral on deposit from counterparties (2) $ 10,134 $ 8,981 Security collateral on deposit from counterparties (3) $ 117 $ 23 Reinvestment portfolio — estimated fair value $ 10,192 $ 8,938 __________________ (1) Included within fixed maturity securities, cash equivalents and short-term investments. At June 30, 2016 , both amortized cost and estimated fair value also included $106 million , at estimated fair value, of securities which are not reflected on the consolidated financial statements. (2) Included within payables for collateral under securities loaned and other transactions. (3) Security collateral on deposit from counterparties may not be sold or re-pledged, unless the counterparty is in default, and is not reflected on the consolidated financial statements. The cash collateral liability by loaned security type and remaining tenor of the agreements were as follows at: June 30, 2016 Remaining Tenor of Securities Lending Agreements Open (1) 1 Month or Less 1 to 6 Months Total % of Total (Dollars in millions) Cash collateral liability by loaned security type: U.S. government and agency $ 2,525 $ 2,678 $ 3,295 $ 8,498 83.8 % Agency RMBS — — 1,254 1,254 12.4 U.S. corporate 5 319 — 324 3.2 Foreign government — 46 — 46 0.5 Foreign corporate — 12 — 12 0.1 Total $ 2,530 $ 3,055 $ 4,549 $ 10,134 100 % December 31, 2015 Remaining Tenor of Securities Lending Agreements Open (1) 1 Month or Less 1 to 6 Months Total % of Total (Dollars in millions) Cash collateral liability by loaned security type: U.S. government and agency $ 2,631 $ 3,140 $ 1,338 $ 7,109 79.1 % Agency RMBS — 939 579 1,518 16.9 U.S. corporate 9 302 — 311 3.5 Foreign government 1 42 — 43 0.5 Foreign corporate — — — — — Total $ 2,641 $ 4,423 $ 1,917 $ 8,981 100 % __________________ (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 are presented below at estimated fair value for all asset classes, except mortgage loans, which are presented at carrying value at: June 30, 2016 December 31, 2015 (In millions) Invested assets on deposit (regulatory deposits) $ 8,171 $ 7,245 Invested assets held in trust (reinsurance agreements) (1) 1,121 952 Invested assets pledged as collateral (2) 5,168 2,801 Total invested assets on deposit, held in trust and pledged as collateral $ 14,460 $ 10,998 __________________ (1) The Company has held in trust certain investments, primarily fixed maturity securities, in connection with certain reinsurance transactions. (2) The Company has pledged invested assets in connection with various agreements and transactions, including funding agreements (see Note 5 of the Notes to the Consolidated Financial Statements included in the 2015 Annual Report) and derivative transactions (see Note 5 ). |
The Components of Net Investment Income | The components of net investment income were as follows: Three Months Six Months 2016 2015 2016 2015 (In millions) Investment income: Fixed maturity securities $ 556 $ 506 $ 1,071 $ 993 Equity securities 4 4 9 8 Mortgage loans 106 83 194 155 Policy loans 15 13 29 26 Real estate and real estate joint ventures 2 44 15 66 Other limited partnership interests 20 55 41 107 Cash, cash equivalents and short-term investments 5 3 9 5 Operating joint venture 5 6 7 8 Other 2 (1 ) 2 3 Subtotal 715 713 1,377 1,371 Less: Investment expenses 39 29 77 56 Subtotal, net 676 684 1,300 1,315 FVO CSEs — interest income — commercial mortgage loans 2 5 5 9 Net investment income $ 678 $ 689 $ 1,305 $ 1,324 |
The components of net investment gains (losses) | The components of net investment gains (losses) were as follows: Three Months Six Months 2016 2015 2016 2015 (In millions) Total gains (losses) on fixed maturity securities: Total OTTI losses recognized — by sector and industry: U.S. and foreign corporate securities — by industry: Industrial $ — $ — $ (13 ) $ (1 ) Total U.S. and foreign corporate securities — — (13 ) (1 ) RMBS — — (2 ) (2 ) OTTI losses on fixed maturity securities recognized in earnings — — (15 ) (3 ) Fixed maturity securities — net gains (losses) on sales and disposals 21 (9 ) (12 ) 16 Total gains (losses) on fixed maturity securities 21 (9 ) (27 ) 13 Total gains (losses) on equity securities: Total OTTI losses recognized — by sector: Common stock — (1 ) (1 ) (1 ) OTTI losses on equity securities recognized in earnings — (1 ) (1 ) (1 ) Equity securities — net gains (losses) on sales and disposals — 3 4 2 Total gains (losses) on equity securities — 2 3 1 Mortgage loans (4 ) (4 ) (6 ) (5 ) Real estate and real estate joint ventures — 6 (1 ) 29 Other limited partnership interests (2 ) — (6 ) (1 ) Other 3 (3 ) 5 (1 ) Subtotal 18 (8 ) (32 ) 36 FVO CSEs: Commercial mortgage loans (1 ) 1 — (2 ) Long-term debt — related to commercial mortgage loans — 1 — 2 Non-investment portfolio gains (losses) (2 ) 1 (1 ) 1 Subtotal (3 ) 3 (1 ) 1 Total net investment gains (losses) $ 15 $ (5 ) $ (33 ) $ 37 |
Proceeds from sales or disposals of fixed maturity and equity securities and the components of fixed maturity and equity securities net investment gains and losses | Proceeds from sales or disposals of fixed maturity and equity securities and the components of fixed maturity and equity securities net investment gains (losses) were as shown in the table below. Three Months 2016 2015 2016 2015 Fixed Maturity Securities Equity Securities (In millions) Proceeds $ 5,035 $ 7,948 $ 2 $ 12 Gross investment gains $ 38 $ 32 $ — $ 3 Gross investment losses (17 ) (41 ) — — OTTI losses — — — (1 ) Net investment gains (losses) $ 21 $ (9 ) $ — $ 2 Six Months 2016 2015 2016 2015 Fixed Maturity Securities Equity Securities (In millions) Proceeds $ 13,873 $ 15,932 $ 6 $ 14 Gross investment gains $ 71 $ 80 $ 4 $ 3 Gross investment losses (83 ) (64 ) — (1 ) OTTI losses (15 ) (3 ) (1 ) (1 ) Net investment gains (losses) $ (27 ) $ 13 $ 3 $ 1 |
Rollforward of the Cumulative Credit Loss Component of OTTI income (loss) | The table below presents a rollforward of the cumulative credit loss component of OTTI loss recognized in earnings on fixed maturity securities still held for which a portion of the OTTI loss was recognized in other comprehensive income (loss) (“OCI”): Three Months Six Months 2016 2015 2016 2015 (In millions) Balance, beginning of period $ 51 $ 56 $ 52 $ 57 Additions: Initial impairments — credit loss OTTI on securities not previously impaired — 1 — 1 Additional impairments — credit loss OTTI on securities previously impaired 1 — 2 2 Reductions: Sales (maturities, pay downs or prepayments) of securities previously impaired as credit loss OTTI (3 ) (8 ) (5 ) (10 ) Increase in cash flows — accretion of previous credit loss OTTI — (1 ) — (2 ) Balance, end of period $ 49 $ 48 $ 49 $ 48 |
Schedule of Gain (Loss) on Securitizations or Asset-backed Financing Arrangements of Financial Assets Accounted for as Sale [Table Text Block] | The Company transfers invested assets, primarily consisting of fixed maturity securities and mortgage loans to and from affiliates. Invested assets transferred to and from affiliates were as follows: Three Months Six Months 2016 2015 2016 2015 (In millions) Estimated fair value of invested assets transferred to affiliates $ — $ 101 $ — $ 101 Amortized cost of invested assets transferred to affiliates $ — $ 95 $ — $ 95 Net investment gains (losses) recognized on transfers $ — $ 6 $ — $ 6 Estimated fair value of invested assets transferred from affiliates $ 4,226 $ — $ 4,463 $ 525 |
Mortgage Loans on Real Estate [Line Items] | |
Schedule of Financing Receivables, Non Accrual Status [Table Text Block] | The past due and accrual status of mortgage loans at recorded investment, prior to valuation allowances, by portfolio segment, were as follows at: Past Due Nonaccrual Status June 30, 2016 December 31, 2015 June 30, 2016 December 31, 2015 (In millions) Commercial $ — $ — $ — $ — Agricultural — — — — Residential 8 4 8 4 Total $ 8 $ 4 $ 8 $ 4 |
Variable Interest Entity, Primary Beneficiary [Member] | |
Variable Interest Entity [Line Items] | |
Variable Interest Entities | The following table presents the total assets and total liabilities re lating to VIEs for which the Company has concluded that it is the primary beneficiary and which are consolidated at June 30, 2016 and December 31, 2015 . June 30, 2016 December 31, 2015 (In millions) CSEs: (1) Assets Mortgage loans (commercial mortgage loans) $ 159 $ 172 Accrued investment income 1 1 Total assets $ 160 $ 173 Liabilities Long-term debt $ 35 $ 48 Other liabilities 1 1 Total liabilities $ 36 $ 49 __________________ (1) The Company consolidates entities that are structured as CMBS. The assets of these entities can only be used to settle their respective liabilities, and under no circumstances is the Company liable for any principal or interest shortfalls should any arise. The Company’s exposure was limited to that of its remaining investment in these entities of $106 million and $105 million at estimated fair value at June 30, 2016 and December 31, 2015 , respectively. The long-term debt bears interest primarily at fixed rates, ranging from 2.25% to 5.57% , payable primarily on a monthly basis. Interest expense related to these obligations, included in other expenses, was $2 million and $3 million for the three months and six months ended June 30, 2016 , respectively and $1 million and $2 million for the three months and six months ended June 30, 2015 , respectively. |
Variable Interest Entity, Not Primary Beneficiary [Member] | |
Variable Interest Entity [Line Items] | |
Variable Interest Entities | The carrying amount and maximum exposure to loss relating to VIEs in which the Company holds a significant variable interest but is not the primary beneficiary and which have not been consolidated were as follows at: June 30, 2016 December 31, 2015 Carrying Amount Maximum Exposure to Loss (1) Carrying Amount Maximum Exposure to Loss (1) (In millions) Fixed maturity securities AFS: Structured Securities (2) $ 17,232 $ 17,232 $ 13,453 $ 13,453 U.S. and foreign corporate 479 479 461 461 Other limited partnership interests 1,576 2,175 1,367 1,647 Real estate joint ventures (3) 256 262 35 38 Other investments (4) 59 66 57 62 Total $ 19,602 $ 20,214 $ 15,373 $ 15,661 __________________ (1) The maximum exposure to loss relating to fixed maturity and equity securities AFS is equal to their carrying amounts or the carrying amounts of retained interests. The maximum exposure to loss relating to other limited partnership interests and real estate joint ventures is equal to the carrying amounts plus any unfunded commitments. For certain of its investments in other invested assets, the Company’s return is in the form of income tax credits which are guaranteed by creditworthy third parties. For such investments, the maximum exposure to loss is equal to the carrying amounts plus any unfunded commitments, reduced by income tax credits guaranteed by third parties of less than $1 million at both June 30, 2016 and December 31, 2015 . Such a maximum loss would be expected to occur only upon bankruptcy of the issuer or investee. (2) For these variable interests, the Company’s involvement is limited to that of a passive investor in mortgage-backed or asset-backed securities issued by trusts that do not have substantial equity. (3) Included in real estate joint ventures are investments in affiliated real estate joint ventures with a carrying value and maximum exposure to loss of $204 million at June 30, 2016 . (4) Other investments is comprised of other invested assets and non-redeemable preferred stock. |
Commercial | |
Mortgage Loans on Real Estate [Line Items] | |
Disclosure of the mortgage loans portfolio segment by the recorded investment, prior to valuation allowances, by credit quality indicator categories | The credit quality of commercial mortgage loans was as follows at: Recorded Investment Debt Service Coverage Ratios % of Total Estimated Fair Value % of Total > 1.20x 1.00x - 1.20x < 1.00x Total (Dollars in millions) June 30, 2016 Loan-to-value ratios: Less than 65% $ 5,157 $ 177 $ 134 $ 5,468 91.6 % $ 5,853 92.0 % 65% to 75% 413 — 14 427 7.1 438 6.9 76% to 80% — — — — — — — Greater than 80% 62 14 — 76 1.3 73 1.1 Total $ 5,632 $ 191 $ 148 $ 5,971 100.0 % $ 6,364 100.0 % December 31, 2015 Loan-to-value ratios: Less than 65% $ 4,659 $ 151 $ 100 $ 4,910 92.1 % $ 5,124 92.6 % 65% to 75% 330 — 8 338 6.3 330 6.0 76% to 80% — — — — — — — Greater than 80% 44 25 14 83 1.6 80 1.4 Total $ 5,033 $ 176 $ 122 $ 5,331 100.0 % $ 5,534 100.0 % |
Agricultural | |
Mortgage Loans on Real Estate [Line Items] | |
Disclosure of the mortgage loans portfolio segment by the recorded investment, prior to valuation allowances, by credit quality indicator categories | The credit quality of agricultural mortgage loans was as follows at: June 30, 2016 December 31, 2015 Recorded Investment % of Total Recorded Investment % of Total (Dollars in millions) Loan-to-value ratios: Less than 65% $ 1,451 93.2 % $ 1,366 93.6 % 65% to 75% 106 6.8 94 6.4 Total $ 1,557 100.0 % $ 1,460 100.0 % |
Residential | |
Mortgage Loans on Real Estate [Line Items] | |
Disclosure of the mortgage loans portfolio segment by the recorded investment, prior to valuation allowances, by credit quality indicator categories | The credit quality of residential mortgage loans was as follows at: June 30, 2016 December 31, 2015 Recorded Investment % of Total Recorded Investment % of Total (Dollars in millions) Performance indicators: Performing $ 525 98.5 % $ 331 98.8 % Nonperforming 8 1.5 4 1.2 Total $ 533 100.0 % $ 335 100.0 % |
Derivatives (Tables)
Derivatives (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location | The following table presents the gross notional amount, estimated fair value and primary underlying risk exposure of the Company’s derivatives, excluding embedded derivatives, held at: June 30, 2016 December 31, 2015 Primary Underlying Risk Exposure Gross Notional Estimated Fair Value Gross Notional Estimated Fair Value Assets Liabilities Assets Liabilities (In millions) Derivatives Designated as Hedging Instruments Fair value hedges Interest rate swaps Interest rate $ 349 $ 63 $ 3 $ 420 $ 38 $ 1 Cash flow hedges Interest rate swaps Interest rate 123 52 — 230 60 — Interest rate forwards Interest rate 35 16 — 35 8 — Foreign currency swaps Foreign currency exchange rate 1,186 173 3 937 126 3 Subtotal 1,344 241 3 1,202 194 3 Total qualifying hedges 1,693 304 6 1,622 232 4 Derivatives Not Designated or Not Qualifying as Hedging Instruments: Interest rate swaps Interest rate 22,648 3,111 1,019 23,134 1,804 638 Interest rate floors Interest rate 2,100 20 14 7,036 33 24 Interest rate caps Interest rate 14,192 8 — 13,792 38 — Interest rate futures Interest rate 2,357 — 3 630 2 — Interest rate options Interest rate 16,720 1,051 — 18,620 472 5 Interest rate total return swaps Interest rate 1,262 66 — — — — Foreign currency swaps Foreign currency exchange rate 1,107 118 12 659 75 — Foreign currency forwards Foreign currency exchange rate 141 3 — 185 4 1 Credit default swaps — purchased Credit 44 — 1 21 — — Credit default swaps — written Credit 1,957 17 1 2,093 13 1 Equity futures Equity market 8,512 1 96 3,669 37 — Equity index options Equity market 42,061 1,266 783 44,035 1,032 626 Equity variance swaps Equity market 14,935 128 463 14,866 120 434 Equity total return swaps Equity market 2,946 42 29 2,814 31 49 Total non-designated or nonqualifying derivatives 130,982 5,831 2,421 131,554 3,661 1,778 Total $ 132,675 $ 6,135 $ 2,427 $ 133,176 $ 3,893 $ 1,782 The following table presents earned income on derivatives: Three Months Six Months 2016 2015 2016 2015 (In millions) Qualifying hedges: Net investment income $ 4 $ 2 $ 7 $ 5 Interest credited to policyholder account balances — (1 ) — (1 ) Nonqualifying hedges: Net derivative gains (losses) 99 86 196 177 Policyholder benefits and claims 3 4 7 7 Total $ 106 $ 91 $ 210 $ 188 |
Amount and location of gains (losses) recognized in income for derivatives that are not designated or qualifying as hedging instruments | The following table presents the amount and location of gains (losses) recognized in income for derivatives that were not designated or not qualifying as hedging instruments: Net Net Policyholder (In millions) Three Months Ended June 30, 2016 Interest rate derivatives $ 599 $ — $ 10 Foreign currency exchange rate derivatives 29 — — Credit derivatives — written (1 ) — — Equity derivatives (215 ) (1 ) (47 ) Total $ 412 $ (1 ) $ (37 ) Three Months Ended June 30, 2015 Interest rate derivatives $ (682 ) $ — $ (17 ) Foreign currency exchange rate derivatives (34 ) — — Credit derivatives — written (6 ) — — Equity derivatives (157 ) — (23 ) Total $ (879 ) $ — $ (40 ) Six Months Ended June 30, 2016 Interest rate derivatives $ 1,416 $ — $ 29 Foreign currency exchange rate derivatives 29 — — Credit derivatives — written (1 ) — — Equity derivatives (351 ) (4 ) (17 ) Total $ 1,093 $ (4 ) $ 12 Six Months Ended June 30, 2015 Interest rate derivatives $ (281 ) $ — $ (6 ) Foreign currency exchange rate derivatives 1 — — Credit derivatives — written (5 ) — — Equity derivatives (366 ) (1 ) (96 ) Total $ (651 ) $ (1 ) $ (102 ) __________________ (1) Changes in estimated fair value related to economic hedges of equity method investments in joint ventures. (2) Changes in estimated fair value related to economic hedges of variable annuity guarantees included in future policy benefits. |
Net derivatives gains (losses) recognized on fair value derivatives and the related hedged items | The Company recognizes gains and losses on derivatives and the related hedged items in fair value hedges within net derivative gains (losses). The following table presents the amount of such net derivative gains (losses): Net Derivative Net Derivative Ineffectiveness (In millions) Three Months Ended June 30, 2016 Interest rate swaps: Fixed maturity securities $ (1 ) $ — $ (1 ) Policyholder liabilities (1) 10 (10 ) — Total $ 9 $ (10 ) $ (1 ) Three Months Ended June 30, 2015 Interest rate swaps: Fixed maturity securities $ 1 $ — $ 1 Policyholder liabilities (1) (16 ) 16 — Total $ (15 ) $ 16 $ 1 Six Months Ended June 30, 2016 Interest rate swaps: Fixed maturity securities $ (3 ) $ 2 $ (1 ) Policyholder liabilities (1) 24 (24 ) — Total $ 21 $ (22 ) $ (1 ) Six Months Ended June 30, 2015 Interest rate swaps: Fixed maturity securities $ — $ 1 $ 1 Policyholder liabilities (1) (7 ) 7 — Total $ (7 ) $ 8 $ 1 __________________ (1) Fixed rate liabilities reported in policyholder account balances or future policy benefits. |
Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location | The following table presents the effects of derivatives in cash flow hedging relationships on the consolidated statements of operations and comprehensive income (loss) and the consolidated statements of stockholder’s equity: Derivatives in Cash Flow Hedging Relationships Amount of Gains (Losses) Deferred in AOCI on Derivatives Amount and Location of Gains (Losses) Reclassified from AOCI into Income (Loss) Amount and Location of Gains (Losses) Recognized in Income (Loss) on Derivatives (Effective Portion) (Effective Portion) (Ineffective Portion) Net Derivative Gains (Losses) Net Investment Income Net Derivative Gains (Losses) (In millions) Three Months Ended June 30, 2016 Interest rate swaps $ 10 $ 12 $ — $ — Interest rate forwards 3 (1 ) 1 — Foreign currency swaps 57 (1 ) — — Credit forwards — — — — Total $ 70 $ 10 $ 1 $ — Three Months Ended June 30, 2015 Interest rate swaps $ (41 ) $ — $ 1 $ 1 Interest rate forwards (11 ) — — — Foreign currency swaps (31 ) 2 — — Credit forwards — — — — Total $ (83 ) $ 2 $ 1 $ 1 Six Months Ended June 30, 2016 Interest rate swaps $ 36 $ 12 $ 1 $ — Interest rate forwards 7 1 2 — Foreign currency swaps 44 1 — — Credit forwards — — — — Total $ 87 $ 14 $ 3 $ — Six Months Ended June 30, 2015 Interest rate swaps $ (12 ) $ 1 $ 1 $ 1 Interest rate forwards — 1 1 — Foreign currency swaps 21 (2 ) — — Credit forwards — (1 ) — — Total $ 9 $ (1 ) $ 2 $ 1 |
Schedule of estimated fair value, maximum amount of future payments and weighted average years to maturity of written credit default swaps | The following table presents the estimated fair value, maximum amount of future payments and weighted average years to maturity of written credit default swaps at: June 30, 2016 December 31, 2015 Rating Agency Designation of Referenced Credit Obligations (1) Estimated Fair Value of Credit Default Swaps Maximum Amount of Future Payments under Credit Default Swaps Weighted Average Years to Maturity (2) Estimated Fair Value of Credit Default Swaps Maximum Amount of Future Payments under Credit Default Swaps Weighted Average Years to Maturity (2) (Dollars in millions) Aaa/Aa/A Single name credit default swaps (corporate) $ — $ 102 1.8 $ 1 $ 207 1.5 Credit default swaps referencing indices 3 318 3.8 1 219 4.0 Subtotal 3 420 3.4 2 426 2.8 Baa Single name credit default swaps (corporate) 1 274 1.7 2 409 1.6 Credit default swaps referencing indices 12 1,263 5.0 8 1,222 4.8 Subtotal 13 1,537 4.4 10 1,631 4.0 B Single name credit default swaps (corporate) — — — — — — Credit default swaps referencing indices — — — — 36 5.0 Subtotal — — — — 36 5.0 Total $ 16 $ 1,957 4.2 $ 12 $ 2,093 3.8 __________________ (1) The rating agency designations are based on availability and the midpoint of the applicable ratings among Moody’s Investors Service (“Moody’s”), Standard & Poor’s Ratings Services (“S&P”) and Fitch Ratings. 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 and Liabilities after Master Netting Agreements and Cash Collateral | The estimated fair values of the Company’s net derivative assets and net derivative liabilities after the application of master netting agreements and collateral were as follows at: June 30, 2016 December 31, 2015 Derivatives Subject to a Master Netting Arrangement or a Similar Arrangement (6) Assets Liabilities Assets Liabilities (In millions) Gross estimated fair value of derivatives: OTC-bilateral (1) $ 5,773 $ 2,209 $ 3,870 $ 1,725 OTC-cleared (1) 452 127 78 78 Exchange-traded 1 99 39 — Total gross estimated fair value of derivatives (1) 6,226 2,435 3,987 1,803 Amounts offset on the consolidated balance sheets — — — — Estimated fair value of derivatives presented on the consolidated balance sheets (1) 6,226 2,435 3,987 1,803 Gross amounts not offset on the consolidated balance sheets: Gross estimated fair value of derivatives: (2) OTC-bilateral (2,062 ) (2,062 ) (1,577 ) (1,577 ) OTC-cleared (127 ) (127 ) (70 ) (70 ) Exchange-traded (1 ) (1 ) — — Cash collateral: (3), (4) OTC-bilateral (3,047 ) — (1,605 ) — OTC-cleared (321 ) — (8 ) (8 ) Exchange-traded — (18 ) — — Securities collateral: (5) OTC-bilateral (627 ) (91 ) (552 ) (148 ) OTC-cleared — — — — Exchange-traded — (80 ) — — Net amount after application of master netting agreements and collateral $ 41 $ 56 $ 175 $ — __________________ (1) At June 30, 2016 and December 31, 2015 , derivative assets included income or expense accruals reported in accrued investment income or in other liabilities of $91 million and $94 million , respectively, and derivative liabilities included income or expense accruals reported in accrued investment income or in other liabilities of $8 million and $21 million , respectively. (2) Estimated fair value of derivatives is limited to the amount that is subject to set-off and includes income or expense accruals. (3) Cash collateral received by the Company for OTC-bilateral and OTC-cleared derivatives is included in cash and cash equivalents, short-term investments or in fixed maturity securities, and the obligation to return it is included in payables for collateral under securities loaned and other transactions on the balance sheet. (4) The receivable for the return of cash collateral provided by the Company is inclusive of initial margin on exchange-traded and OTC-cleared derivatives and is included in premiums, reinsurance and other receivables on the balance sheet. The amount of cash collateral offset in the table above is limited to the net estimated fair value of derivatives after application of netting agreements. At June 30, 2016 and December 31, 2015 , the Company received excess cash collateral of $167 million and $1 million , respectively, and provided excess cash collateral of $46 million and $62 million , respectively, which is not included in the table above due to the foregoing limitation. (5) Securities collateral received by the Company is held in separate custodial accounts and is not recorded on the balance sheet. Subject to certain constraints, the Company is permitted by contract to sell or re-pledge this collateral, but at June 30, 2016 , none of the collateral had been sold or re-pledged. Securities collateral pledged by the Company is reported in fixed maturity securities on the balance sheet. Subject to certain constraints, the counterparties are permitted by contract to sell or re-pledge this collateral. The amount of securities collateral offset in the table above is limited to the net estimated fair value of derivatives after application of netting agreements and cash collateral. At June 30, 2016 and December 31, 2015 , the Company received excess securities collateral with an estimated fair value of $216 million and $0 , respectively, for its OTC-bilateral derivatives, which are not included in the table above due to the foregoing limitation. At June 30, 2016 and December 31, 2015 , the Company provided excess securities collateral with an estimated fair value of $8 million and $36 million , respectively, for its OTC-bilateral derivatives, and $99 million and $34 million , respectively, for its OTC-cleared derivatives, and $285 million and $156 million , respectively, for its exchange-traded derivatives, which are not included in the table above due to the foregoing limitation. (6) See Note 4 for information regarding the Company’s gross and net payables and receivables under repurchase agreement transactions. |
Estimated Fair Value of Derivative Assets and Liabilities after Master Netting Agreements and Cash Collateral | The estimated fair values of the Company’s net derivative assets and net derivative liabilities after the application of master netting agreements and collateral were as follows at: June 30, 2016 December 31, 2015 Derivatives Subject to a Master Netting Arrangement or a Similar Arrangement (6) Assets Liabilities Assets Liabilities (In millions) Gross estimated fair value of derivatives: OTC-bilateral (1) $ 5,773 $ 2,209 $ 3,870 $ 1,725 OTC-cleared (1) 452 127 78 78 Exchange-traded 1 99 39 — Total gross estimated fair value of derivatives (1) 6,226 2,435 3,987 1,803 Amounts offset on the consolidated balance sheets — — — — Estimated fair value of derivatives presented on the consolidated balance sheets (1) 6,226 2,435 3,987 1,803 Gross amounts not offset on the consolidated balance sheets: Gross estimated fair value of derivatives: (2) OTC-bilateral (2,062 ) (2,062 ) (1,577 ) (1,577 ) OTC-cleared (127 ) (127 ) (70 ) (70 ) Exchange-traded (1 ) (1 ) — — Cash collateral: (3), (4) OTC-bilateral (3,047 ) — (1,605 ) — OTC-cleared (321 ) — (8 ) (8 ) Exchange-traded — (18 ) — — Securities collateral: (5) OTC-bilateral (627 ) (91 ) (552 ) (148 ) OTC-cleared — — — — Exchange-traded — (80 ) — — Net amount after application of master netting agreements and collateral $ 41 $ 56 $ 175 $ — __________________ (1) At June 30, 2016 and December 31, 2015 , derivative assets included income or expense accruals reported in accrued investment income or in other liabilities of $91 million and $94 million , respectively, and derivative liabilities included income or expense accruals reported in accrued investment income or in other liabilities of $8 million and $21 million , respectively. (2) Estimated fair value of derivatives is limited to the amount that is subject to set-off and includes income or expense accruals. (3) Cash collateral received by the Company for OTC-bilateral and OTC-cleared derivatives is included in cash and cash equivalents, short-term investments or in fixed maturity securities, and the obligation to return it is included in payables for collateral under securities loaned and other transactions on the balance sheet. (4) The receivable for the return of cash collateral provided by the Company is inclusive of initial margin on exchange-traded and OTC-cleared derivatives and is included in premiums, reinsurance and other receivables on the balance sheet. The amount of cash collateral offset in the table above is limited to the net estimated fair value of derivatives after application of netting agreements. At June 30, 2016 and December 31, 2015 , the Company received excess cash collateral of $167 million and $1 million , respectively, and provided excess cash collateral of $46 million and $62 million , respectively, which is not included in the table above due to the foregoing limitation. (5) Securities collateral received by the Company is held in separate custodial accounts and is not recorded on the balance sheet. Subject to certain constraints, the Company is permitted by contract to sell or re-pledge this collateral, but at June 30, 2016 , none of the collateral had been sold or re-pledged. Securities collateral pledged by the Company is reported in fixed maturity securities on the balance sheet. Subject to certain constraints, the counterparties are permitted by contract to sell or re-pledge this collateral. The amount of securities collateral offset in the table above is limited to the net estimated fair value of derivatives after application of netting agreements and cash collateral. At June 30, 2016 and December 31, 2015 , the Company received excess securities collateral with an estimated fair value of $216 million and $0 , respectively, for its OTC-bilateral derivatives, which are not included in the table above due to the foregoing limitation. At June 30, 2016 and December 31, 2015 , the Company provided excess securities collateral with an estimated fair value of $8 million and $36 million , respectively, for its OTC-bilateral derivatives, and $99 million and $34 million , respectively, for its OTC-cleared derivatives, and $285 million and $156 million , respectively, for its exchange-traded derivatives, which are not included in the table above due to the foregoing limitation. (6) See Note 4 for information regarding the Company’s gross and net payables and receivables under repurchase agreement transactions. |
Derivative Instruments, Gain (Loss) [Line Items] | |
Components of Net Derivatives Gains (Losses) | The components of net derivative gains (losses) were as follows: Three Months Six Months 2016 2015 2016 2015 (In millions) Freestanding derivatives and hedging gains (losses) (1) $ 512 $ (787 ) $ 1,287 $ (466 ) Embedded derivatives gains (losses) (3,742 ) 770 (4,522 ) 534 Total net derivative gains (losses) $ (3,230 ) $ (17 ) $ (3,235 ) $ 68 __________________ (1) Includes foreign currency transaction gains (losses) on hedged items in cash flow and nonqualifying hedging relationships, which are not presented elsewhere in this note. |
Schedule of Derivative Instruments | June 30, 2016 December 31, 2015 (In millions) Estimated Fair Value of Derivatives in a Net Liability Position (1) $ 147 $ 148 Estimated Fair Value of Collateral Provided: Fixed maturity securities $ 99 $ 179 Cash $ — $ — Estimated Fair Value of Incremental Collateral Provided Upon: One-notch downgrade in financial strength rating $ — $ — Downgrade in financial strength rating to a level that triggers full overnight collateralization or termination of the derivative position $ — $ — __________________ (1) After taking into consideration the existence of netting agreements. |
Embedded Derivative Financial Instruments [Member] | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Components of Net Derivatives Gains (Losses) | The following table presents changes in estimated fair value related to embedded derivatives: Three Months Six Months 2016 2015 2016 2015 (In millions) Net derivative gains (losses) (1), (2) $ (3,742 ) $ 770 $ (4,522 ) $ 534 Policyholder benefits and claims $ 60 $ (43 ) $ 105 $ (19 ) __________________ (1) The valuation of direct and assumed guaranteed minimum benefits includes a nonperformance risk adjustment. The amounts included in net derivative gains (losses) in connection with this adjustment were $513 million and $657 million for the three months and six months ended June 30, 2016 , respectively, and ($30) million and ($14) million for the three months and six months ended June 30, 2015 , respectively. (2) See Note 10 for discussion of affiliated net derivative gains (losses). |
Schedule of Derivative Instruments | The following table presents the estimated fair value and balance sheet location of the Company’s embedded derivatives that have been separated from their host contracts at: Balance Sheet Location June 30, 2016 December 31, 2015 (In millions) Net embedded derivatives within asset host contracts: Ceded guaranteed minimum benefits Premiums, reinsurance and other receivables $ 350 $ 242 Funds withheld on assumed reinsurance Other invested assets 63 35 Options embedded in debt or equity securities Investments (77 ) (63 ) Net embedded derivatives within asset host contracts $ 336 $ 214 Net embedded derivatives within liability host contracts: Direct guaranteed minimum benefits Policyholder account balances $ 4,205 $ 177 Assumed guaranteed minimum benefits Policyholder account balances 1,297 897 Funds withheld on ceded reinsurance Other liabilities 603 244 Other Policyholder account balances 10 6 Net embedded derivatives within liability host contracts $ 6,115 $ 1,324 |
Fair Value (Tables)
Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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, including those items for which the Company has elected the FVO, are presented below. June 30, 2016 Fair Value Hierarchy Total Level 1 Level 2 Level 3 (In millions) Assets Fixed maturity securities: U.S. corporate $ — $ 17,383 $ 1,634 $ 19,017 U.S. government and agency 10,109 7,631 25 17,765 RMBS 1,563 7,566 1,455 10,584 Foreign corporate — 4,982 874 5,856 State and political subdivision — 3,183 8 3,191 ABS — 3,008 163 3,171 CMBS — 3,303 174 3,477 Foreign government — 973 9 982 Total fixed maturity securities 11,672 48,029 4,342 64,043 Equity securities: 42 175 173 390 Short-term investments (1) 112 2,310 111 2,533 Commercial mortgage loans held by CSEs — FVO — 159 — 159 Derivative assets: (2) Interest rate — 4,306 81 4,387 Foreign currency exchange rate — 294 — 294 Credit — 13 4 17 Equity market 1 1,222 214 1,437 Total derivative assets 1 5,835 299 6,135 Net embedded derivatives within asset host contracts (3) — — 413 413 Separate account assets (4) 546 100,332 142 101,020 Total assets $ 12,373 $ 156,840 $ 5,480 $ 174,693 Liabilities Derivative liabilities: (2) Interest rate $ 3 $ 1,036 $ — $ 1,039 Foreign currency exchange rate — 15 — 15 Credit — 2 — 2 Equity market 96 794 481 1,371 Total derivative liabilities 99 1,847 481 2,427 Net embedded derivatives within liability host contracts (3) — — 6,115 6,115 Long-term debt of CSEs — FVO — 35 — 35 Total liabilities $ 99 $ 1,882 $ 6,596 $ 8,577 December 31, 2015 Fair Value Hierarchy Total Estimated Level 1 Level 2 Level 3 (In millions) Assets Fixed maturity securities: U.S. corporate $ — $ 15,295 $ 1,451 $ 16,746 U.S. government and agency 7,998 5,808 — 13,806 RMBS — 7,138 1,340 8,478 Foreign corporate — 4,263 691 4,954 State and political subdivision — 2,692 13 2,705 ABS — 2,357 317 2,674 CMBS — 2,120 181 2,301 Foreign government — 719 26 745 Total fixed maturity securities 7,998 40,392 4,019 52,409 Equity securities: 44 268 97 409 Short-term investments (1) 59 1,623 47 1,729 Commercial mortgage loans held by CSEs — FVO — 172 — 172 Derivative assets: (2) Interest rate 2 2,445 8 2,455 Foreign currency exchange rate — 205 — 205 Credit — 12 1 13 Equity market 37 968 215 1,220 Total derivative assets 39 3,630 224 3,893 Net embedded derivatives within asset host contracts (3) — — 277 277 Separate account assets (4) 624 100,965 146 101,735 Total assets $ 8,764 $ 147,050 $ 4,810 $ 160,624 Liabilities Derivative liabilities: (2) Interest rate $ — $ 668 $ — $ 668 Foreign currency exchange rate — 4 — 4 Credit — 1 — 1 Equity market — 653 456 1,109 Total derivative liabilities — 1,326 456 1,782 Net embedded derivatives within liability host contracts (3) — — 1,324 1,324 Long-term debt of CSEs — FVO — 48 — 48 Total liabilities $ — $ 1,374 $ 1,780 $ 3,154 __________________ (1) Short-term investments as presented in the tables above differ from the amounts presented on the consolidated balance sheets because certain short-term investments are not measured at estimated fair value on a recurring basis. (2) 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, but are presented net for purposes of the rollforward in the Fair Value Measurements Using Significant Unobservable Inputs (Level 3) tables. (3) Net embedded derivatives within asset host contracts are presented within premiums, reinsurance and other receivables and other invested assets on the consolidated balance sheets. Net embedded derivatives within liability host contracts are presented within policyholder account balances and other liabilities on the consolidated balance sheets. At June 30, 2016 and December 31, 2015 , debt and equity securities also included embedded derivatives of ($77) million and ($63) million , respectively. (4) Investment performance related to separate account assets is fully offset by corresponding amounts credited to contractholders whose liability is reflected within separate account liabilities. Separate account liabilities are set equal to the estimated fair value of separate account assets. |
Fair Value Inputs, Quantitative Information | The following table presents 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) at: June 30, 2016 December 31, 2015 Impact of Increase in Input on Estimated Valuation Significant Unobservable Inputs Weighted Range Weighted Fixed maturity securities (3) U.S. corporate and foreign corporate • Matrix pricing • Delta spread adjustments (4) (106) - 545 (2) (65) - 240 49 Decrease • Market pricing • Quoted prices (5) 13 - 884 321 13 - 780 314 Increase • Consensus pricing • Offered quotes (5) 6 - 95 83 68 - 95 80 Increase RMBS • Market pricing • Quoted prices (5) 36 - 112 90 29 - 292 93 Increase (6) ABS • Market pricing • Quoted prices (5) 97 - 103 101 97 - 103 100 Increase (6) • Consensus pricing • Offered quotes (5) 98 - 101 99 66 - 105 99 Increase (6) Derivatives Interest rate • Present value techniques • Swap yield (7) 231 - 231 317 - 317 Increase (8) • Repurchase rates (9) (16) - (3) Decrease (8) Credit • Present value techniques • Credit spreads (10) 97 - 100 — - — Decrease (8) • Consensus pricing • Offered quotes (11) Equity market • Present value techniques or option pricing models • Volatility (12) 16% - 35% 17% - 36% Increase (8) • Correlation (13) 70% - 70% 70% - 70% Embedded derivatives Direct, assumed and ceded guaranteed minimum benefits • Option pricing techniques • Mortality rates: Ages 0 - 40 0% - 0.09% 0% - 0.09% Decrease (14) Ages 41 - 60 0.04% - 0.65% 0.04% - 0.65% Decrease (14) Ages 61 - 115 0.26% - 100% 0.26% - 100% Decrease (14) • Lapse rates: Durations 1 - 10 0.25% - 100% 0.25% - 100% Decrease (15) Durations 11 - 20 3% - 100% 3% - 100% Decrease (15) Durations 21 - 116 3% - 100% 3% - 100% Decrease (15) • Utilization rates 0% - 25% 0% - 25% Increase (16) • Withdrawal rates 0.25% - 10% 0.25% - 10% (17) • Long-term equity volatilities 17.40% - 25% 17.40% - 25% Increase (18) • Nonperformance risk spread 0.07% - 0.72% 0.04% - 0.52% Decrease (19) ___________________ (1) The weighted average for fixed maturity securities is determined based on the estimated fair value of the securities. (2) The impact of a decrease in input would have the opposite impact on estimated fair value. For embedded derivatives, changes to direct and assumed guaranteed minimum benefits are based on liability positions; changes to ceded guaranteed minimum benefits are based on asset positions. (3) Significant increases (decreases) in expected default rates in isolation would result in substantially lower (higher) valuations. (4) Range and weighted average are presented in basis points. (5) Range and weighted average are presented in accordance with the market convention for fixed maturity securities of dollars per hundred dollars of par. (6) Changes in the assumptions used for the probability of default is accompanied by a directionally similar change in the assumption used for the loss severity and a directionally opposite change in the assumptions used for prepayment rates. (7) Ranges represent the rates across different yield curves and are presented in basis points. The swap yield curves are utilized among different types of derivatives to project cash flows, as well as to discount future cash flows to present value. Since this valuation methodology uses a range of inputs across a yield curve to value the derivative, presenting a range is more representative of the unobservable input used in the valuation. (8) Changes in estimated fair value are based on long U.S. dollar net asset positions and will be inversely impacted for short U.S. dollar net asset positions. (9) Ranges represent different repurchase rates utilized as components within the valuation methodology and are presented in basis points. (10) Represents the risk quoted in basis points of a credit default event on the underlying instrument. Credit derivatives with significant unobservable inputs are primarily comprised of written credit default swaps. (11) At both June 30, 2016 and December 31, 2015 , independent non-binding broker quotations were used in the determination of less than 1% of the total net derivative estimated fair value. (12) Ranges represent the underlying equity volatility quoted in percentage points. Since this valuation methodology uses a range of inputs across multiple volatility surfaces to value the derivative, presenting a range is more representative of the unobservable input used in the valuation. (13) Ranges represent the different correlation factors utilized as components within the valuation methodology. Presenting a range of correlation factors is more representative of the unobservable input used in the valuation. Increases (decreases) in correlation in isolation will increase (decrease) the significance of the change in valuations. (14) Mortality rates vary by age and by demographic characteristics such as gender. Mortality rate assumptions are based on company experience. A mortality improvement assumption is also applied. For any given contract, mortality rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. (15) 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. For any given contract, lapse rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. (16) 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. The 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. For any given contract, utilization rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. (17) 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. (18) 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. (19) Nonperformance risk spread varies by duration and by currency. 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 Inputs, Quantitative Information | The following table presents 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) at: June 30, 2016 December 31, 2015 Impact of Increase in Input on Estimated Valuation Significant Unobservable Inputs Weighted Range Weighted Fixed maturity securities (3) U.S. corporate and foreign corporate • Matrix pricing • Delta spread adjustments (4) (106) - 545 (2) (65) - 240 49 Decrease • Market pricing • Quoted prices (5) 13 - 884 321 13 - 780 314 Increase • Consensus pricing • Offered quotes (5) 6 - 95 83 68 - 95 80 Increase RMBS • Market pricing • Quoted prices (5) 36 - 112 90 29 - 292 93 Increase (6) ABS • Market pricing • Quoted prices (5) 97 - 103 101 97 - 103 100 Increase (6) • Consensus pricing • Offered quotes (5) 98 - 101 99 66 - 105 99 Increase (6) Derivatives Interest rate • Present value techniques • Swap yield (7) 231 - 231 317 - 317 Increase (8) • Repurchase rates (9) (16) - (3) Decrease (8) Credit • Present value techniques • Credit spreads (10) 97 - 100 — - — Decrease (8) • Consensus pricing • Offered quotes (11) Equity market • Present value techniques or option pricing models • Volatility (12) 16% - 35% 17% - 36% Increase (8) • Correlation (13) 70% - 70% 70% - 70% Embedded derivatives Direct, assumed and ceded guaranteed minimum benefits • Option pricing techniques • Mortality rates: Ages 0 - 40 0% - 0.09% 0% - 0.09% Decrease (14) Ages 41 - 60 0.04% - 0.65% 0.04% - 0.65% Decrease (14) Ages 61 - 115 0.26% - 100% 0.26% - 100% Decrease (14) • Lapse rates: Durations 1 - 10 0.25% - 100% 0.25% - 100% Decrease (15) Durations 11 - 20 3% - 100% 3% - 100% Decrease (15) Durations 21 - 116 3% - 100% 3% - 100% Decrease (15) • Utilization rates 0% - 25% 0% - 25% Increase (16) • Withdrawal rates 0.25% - 10% 0.25% - 10% (17) • Long-term equity volatilities 17.40% - 25% 17.40% - 25% Increase (18) • Nonperformance risk spread 0.07% - 0.72% 0.04% - 0.52% Decrease (19) ___________________ (1) The weighted average for fixed maturity securities is determined based on the estimated fair value of the securities. (2) The impact of a decrease in input would have the opposite impact on estimated fair value. For embedded derivatives, changes to direct and assumed guaranteed minimum benefits are based on liability positions; changes to ceded guaranteed minimum benefits are based on asset positions. (3) Significant increases (decreases) in expected default rates in isolation would result in substantially lower (higher) valuations. (4) Range and weighted average are presented in basis points. (5) Range and weighted average are presented in accordance with the market convention for fixed maturity securities of dollars per hundred dollars of par. (6) Changes in the assumptions used for the probability of default is accompanied by a directionally similar change in the assumption used for the loss severity and a directionally opposite change in the assumptions used for prepayment rates. (7) Ranges represent the rates across different yield curves and are presented in basis points. The swap yield curves are utilized among different types of derivatives to project cash flows, as well as to discount future cash flows to present value. Since this valuation methodology uses a range of inputs across a yield curve to value the derivative, presenting a range is more representative of the unobservable input used in the valuation. (8) Changes in estimated fair value are based on long U.S. dollar net asset positions and will be inversely impacted for short U.S. dollar net asset positions. (9) Ranges represent different repurchase rates utilized as components within the valuation methodology and are presented in basis points. (10) Represents the risk quoted in basis points of a credit default event on the underlying instrument. Credit derivatives with significant unobservable inputs are primarily comprised of written credit default swaps. (11) At both June 30, 2016 and December 31, 2015 , independent non-binding broker quotations were used in the determination of less than 1% of the total net derivative estimated fair value. (12) Ranges represent the underlying equity volatility quoted in percentage points. Since this valuation methodology uses a range of inputs across multiple volatility surfaces to value the derivative, presenting a range is more representative of the unobservable input used in the valuation. (13) Ranges represent the different correlation factors utilized as components within the valuation methodology. Presenting a range of correlation factors is more representative of the unobservable input used in the valuation. Increases (decreases) in correlation in isolation will increase (decrease) the significance of the change in valuations. (14) Mortality rates vary by age and by demographic characteristics such as gender. Mortality rate assumptions are based on company experience. A mortality improvement assumption is also applied. For any given contract, mortality rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. (15) 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. For any given contract, lapse rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. (16) 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. The 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. For any given contract, utilization rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. (17) 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. (18) 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. (19) Nonperformance risk spread varies by duration and by currency. 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 following tables summarize the change of all assets and (liabilities) measured at estimated fair value on a recurring basis using significant unobservable inputs (Level 3): Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Fixed Maturity Securities Corporate (1) U.S. Government and Agency Structured Securities State and Foreign (In millions) Three Months Ended June 30, 2016 Balance, beginning of period $ 2,135 $ 20 $ 1,635 $ 8 $ — Total realized/unrealized gains (losses) included in net income (loss) (5) (6) — — 8 — — Total realized/unrealized gains (losses) included in AOCI 70 1 (5 ) — — Purchases (7) 229 4 376 — 9 Sales (7) (19 ) — (130 ) — — Issuances (7) — — — — — Settlements (7) — — — — — Transfers into Level 3 (8) 101 — 12 — — Transfers out of Level 3 (8) (8 ) — (104 ) — — Balance, end of period $ 2,508 $ 25 $ 1,792 $ 8 $ 9 Three Months Ended June 30, 2015 Balance, beginning of period $ 2,151 $ — $ 1,527 $ — $ — Total realized/unrealized gains (losses) included in net income (loss) (5) (6) 2 — 7 — — Total realized/unrealized gains (losses) included in AOCI (70 ) — (1 ) — — Purchases (7) 49 — 523 8 — Sales (7) (75 ) — (88 ) — — Issuances (7) — — — — — Settlements (7) — — — — — Transfers into Level 3 (8) 32 — 44 — — Transfers out of Level 3 (8) (13 ) — (248 ) — — Balance, end of period $ 2,076 $ — $ 1,764 $ 8 $ — Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at June 30, 2016 (9) $ — $ — $ 8 $ — $ — Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at June 30, 2015 (9) $ 2 $ — $ 5 $ — $ — Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Equity Short-term Net Net Embedded Separate (In millions) Three Months Ended June 30, 2016 Balance, beginning of period $ 171 $ 50 $ (243 ) $ (1,906 ) $ 143 Total realized/unrealized gains (losses) included in net income (loss) (5) (6) — — 54 (3,664 ) — Total realized/unrealized gains (losses) included in AOCI 3 — 4 — — Purchases (7) — 111 4 — — Sales (7) (1 ) — — — — Issuances (7) — — — — — Settlements (7) — — (1 ) (132 ) — Transfers into Level 3 (8) — — — — — Transfers out of Level 3 (8) — (50 ) — — (1 ) Balance, end of period $ 173 $ 111 $ (182 ) $ (5,702 ) $ 142 Three Months Ended June 30, 2015 Balance, beginning of period $ 90 $ 307 $ (225 ) $ (662 ) $ 156 Total realized/unrealized gains (losses) included in net income (loss) (5) (6) — — (40 ) 718 — Total realized/unrealized gains (losses) included in AOCI 2 — (10 ) — — Purchases (7) — 324 4 — — Sales (7) — (170 ) — — (2 ) Issuances (7) — — — — — Settlements (7) — — (23 ) (114 ) — Transfers into Level 3 (8) 18 — — — — Transfers out of Level 3 (8) — (87 ) — — (4 ) Balance, end of period $ 110 $ 374 $ (294 ) $ (58 ) $ 150 Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at June 30, 2016 (9) $ — $ — $ 57 $ (3,668 ) $ — Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at June 30, 2015 (9) $ — $ — $ (32 ) $ 695 $ — Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Fixed Maturity Securities Corporate (1) U.S. Government and Agency Structured Securities State and Foreign (In millions) Six Months Ended June 30, 2016 Balance, beginning of period $ 2,142 $ — $ 1,838 $ 13 $ 26 Total realized/unrealized gains (losses) included in net income (loss) (5) (6) (12 ) — 14 — — Total realized/unrealized gains (losses) included in AOCI 174 2 (18 ) — — Purchases (7) 274 4 447 — 9 Sales (7) (96 ) — (221 ) — — Issuances (7) — — — — — Settlements (7) — — — — — Transfers into Level 3 (8) 160 19 24 — — Transfers out of Level 3 (8) (134 ) — (292 ) (5 ) (26 ) Balance, end of period $ 2,508 $ 25 $ 1,792 $ 8 $ 9 Six Months Ended June 30, 2015 Balance, beginning of period $ 2,065 $ — $ 1,045 $ — $ — Total realized/unrealized gains (losses) included in net income (loss) (5) (6) 6 — 10 — — Total realized/unrealized gains (losses) included in AOCI (70 ) — (2 ) — — Purchases (7) 97 — 948 8 — Sales (7) (90 ) — (125 ) — — Issuances (7) — — — — — Settlements (7) — — — — — Transfers into Level 3 (8) 72 — 43 — — Transfers out of Level 3 (8) (4 ) — (155 ) — — Balance, end of period $ 2,076 $ — $ 1,764 $ 8 $ — Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at June 30, 2016 (9) $ (10 ) $ — $ 13 $ — $ — Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at June 30, 2015 (9) $ 6 $ — $ 8 $ — $ — Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Equity Short-term Net Net Embedded Separate (In millions) Six Months Ended June 30, 2016 Balance, beginning of period $ 97 $ 47 $ (232 ) $ (1,047 ) $ 146 Total realized/unrealized gains (losses) included in net income (loss) (5) (6) — — 37 (4,399 ) — Total realized/unrealized gains (losses) included in AOCI — — 8 — — Purchases (7) — 111 7 — 1 Sales (7) (13 ) (47 ) — — (4 ) Issuances (7) — — — — — Settlements (7) — — (2 ) (256 ) — Transfers into Level 3 (8) 129 — — — — Transfers out of Level 3 (8) (40 ) — — — (1 ) Balance, end of period $ 173 $ 111 $ (182 ) $ (5,702 ) $ 142 Six Months Ended June 30, 2015 Balance, beginning of period $ 100 $ 71 $ (196 ) $ (347 ) $ 158 Total realized/unrealized gains (losses) included in net income (loss) (5) (6) — — (72 ) 519 (1 ) Total realized/unrealized gains (losses) included in AOCI (2 ) — — — — Purchases (7) — 374 4 — — Sales (7) — (16 ) — — (4 ) Issuances (7) — — — — — Settlements (7) — — (30 ) (230 ) — Transfers into Level 3 (8) 19 — — — — Transfers out of Level 3 (8) (7 ) (55 ) — — (3 ) Balance, end of period $ 110 $ 374 $ (294 ) $ (58 ) $ 150 Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at June 30, 2016 (9) $ — $ — $ 43 $ (4,404 ) $ — Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at June 30, 2015 (9) $ — $ — $ (65 ) $ 496 $ — __________________ (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 contractholders 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. Impairments 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 derivatives 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) relate to assets and liabilities still held at the end of the respective periods. 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 Option | The following table presents information for certain assets and liabilities of CSEs, which are accounted for under the FVO. These assets and liabilities were initially measured at fair value. June 30, 2016 December 31, 2015 (In millions) Assets (1) Unpaid principal balance $ 109 $ 121 Difference between estimated fair value and unpaid principal balance 50 51 Carrying value at estimated fair value $ 159 $ 172 Liabilities (1) Contractual principal balance $ 33 $ 46 Difference between estimated fair value and contractual principal balance 2 2 Carrying value at estimated fair value $ 35 $ 48 __________________ (1) These assets and liabilities are comprised of commercial mortgage loans and long-term debt. Changes in estimated fair value on these assets and liabilities and gains or losses on sales of these assets are recognized in net investment gains (losses). Interest income on commercial mortgage loans held by CSEs — FVO is recognized in net investment income. Interest expense from long-term debt of CSEs — FVO is recognized in other expenses. |
Nonrecurring Fair Value Measurements | The following table presents information for assets measured at estimated fair value on a nonrecurring basis during the periods and still held at the reporting dates (for example, when there is evidence of impairment). The estimated fair values for these assets were determined using significant unobservable inputs (Level 3). At June 30, Three Months Six Months 2016 2015 2016 2015 2016 2015 Carrying Value After Measurement Gains (Losses) (In millions) Mortgage loans (1) $ 3 $ 3 $ — $ — $ — $ — Other limited partnership interests (2) $ 2 $ — $ (1 ) $ — $ (2 ) $ (1 ) Other assets (3) $ — $ — $ — $ — $ (11 ) $ — __________________ (1) Estimated fair values for impaired mortgage loans are based on independent broker quotations or valuation models using unobservable inputs or, if the loans are in foreclosure or are otherwise determined to be collateral dependent, are based on the estimated fair value of the underlying collateral or the present value of the expected future cash flows. (2) For these cost method investments, estimated fair value is determined from information provided on the financial statements of the underlying entities including net asset value (“NAV”) data. These investments include private equity and debt funds that typically invest primarily in various strategies including domestic and international leveraged buyout funds; power, energy, timber and infrastructure development funds; venture capital funds; and below investment grade debt and mezzanine debt funds. Distributions will be generated from investment gains, from operating income from the underlying investments of the funds and from liquidation of the underlying assets of the funds. It is estimated that the underlying assets of the funds will be liquidated over the next two to 10 years . Unfunded commitments for these investments at both June 30, 2016 and 2015 were not significant. (3) During the six months ended June 30, 2016 , the Company recognized an impairment of computer software in connection with the sale of MetLife, Inc.’s U.S. Retail advisor force to Massachusetts Mutual Life Insurance Company (“MassMutual”). See Note 10. |
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: June 30, 2016 Fair Value Hierarchy Carrying Level 1 Level 2 Level 3 Total Estimated Fair Value (In millions) Assets Mortgage loans $ 8,020 $ — $ — $ 8,522 $ 8,522 Policy loans $ 1,190 $ — $ 846 $ 451 $ 1,297 Real estate joint ventures $ 21 $ — $ — $ 61 $ 61 Other limited partnership interests $ 46 $ — $ — $ 50 $ 50 Premiums, reinsurance and other receivables $ 2,091 $ — $ 130 $ 2,968 $ 3,098 Liabilities Policyholder account balances $ 16,586 $ — $ — $ 18,692 $ 18,692 Long-term debt $ 782 $ — $ 1,076 $ — $ 1,076 Other liabilities $ 1,998 $ — $ 1,830 $ 168 $ 1,998 Separate account liabilities $ 1,224 $ — $ 1,224 $ — $ 1,224 December 31, 2015 Fair Value Hierarchy Carrying Level 1 Level 2 Level 3 Total Estimated Fair Value (In millions) Assets Mortgage loans $ 7,090 $ — $ — $ 7,386 $ 7,386 Policy loans $ 1,266 $ — $ 917 $ 430 $ 1,347 Real estate joint ventures $ 23 $ — $ — $ 65 $ 65 Other limited partnership interests $ 52 $ — $ — $ 57 $ 57 Premiums, reinsurance and other receivables $ 6,074 $ — $ 80 $ 7,163 $ 7,243 Liabilities Policyholder account balances $ 18,968 $ — $ — $ 20,339 $ 20,339 Long-term debt $ 788 $ — $ 1,070 $ — $ 1,070 Other liabilities $ 217 $ — $ 43 $ 174 $ 217 Separate account liabilities $ 1,275 $ — $ 1,275 $ — $ 1,275 |
Equity (Tables)
Equity (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive Income (Loss) | Information regarding changes in the balances of each component of AOCI was as follows: Three Months Unrealized Unrealized Foreign Total (In millions) Balance, beginning of period $ 2,372 $ 246 $ (30 ) $ 2,588 OCI before reclassifications 107 70 15 192 Deferred income tax benefit (expense) (51 ) (24 ) (2 ) (77 ) AOCI before reclassifications, net of income tax 2,428 292 (17 ) 2,703 Amounts reclassified from AOCI (23 ) (11 ) — (34 ) Deferred income tax benefit (expense) 8 4 — 12 Amounts reclassified from AOCI, net of income tax (15 ) (7 ) — (22 ) Balance, end of period $ 2,413 $ 285 $ (17 ) $ 2,681 Three Months Unrealized Unrealized Foreign Total (In millions) Balance, beginning of period $ 2,488 $ 245 $ (13 ) $ 2,720 OCI before reclassifications (1,519 ) (83 ) (20 ) (1,622 ) Deferred income tax benefit (expense) 536 28 7 571 AOCI before reclassifications, net of income tax 1,505 190 (26 ) 1,669 Amounts reclassified from AOCI 7 (3 ) — 4 Deferred income tax benefit (expense) (2 ) 1 — (1 ) Amounts reclassified from AOCI, net of income tax 5 (2 ) — 3 Balance, end of period $ 1,510 $ 188 $ (26 ) $ 1,672 Six Months Unrealized Unrealized Foreign Total (In millions) Balance, beginning of period $ 1,415 $ 239 $ (26 ) $ 1,628 OCI before reclassifications 1,520 87 11 1,618 Deferred income tax benefit (expense) (539 ) (30 ) (2 ) (571 ) AOCI before reclassifications, net of income tax 2,396 296 (17 ) 2,675 Amounts reclassified from AOCI 26 (17 ) — 9 Deferred income tax benefit (expense) (9 ) 6 — (3 ) Amounts reclassified from AOCI, net of income tax 17 (11 ) — 6 Balance, end of period $ 2,413 $ 285 $ (17 ) $ 2,681 Six Months Unrealized Unrealized Foreign Total (In millions) Balance, beginning of period $ 2,250 $ 183 $ (7 ) $ 2,426 OCI before reclassifications (1,126 ) 9 (30 ) (1,147 ) Deferred income tax benefit (expense) 398 (3 ) 11 406 AOCI before reclassifications, net of income tax 1,522 189 (26 ) 1,685 Amounts reclassified from AOCI (19 ) (1 ) — (20 ) Deferred income tax benefit (expense) 7 — — 7 Amounts reclassified from AOCI, net of income tax (12 ) (1 ) — (13 ) Balance, end of period $ 1,510 $ 188 $ (26 ) $ 1,672 __________________ (1) See Note 4 for information on offsets to investments related to future policy benefits, DAC, VOBA and DSI. |
Reclassification out of Accumulated Other Comprehensive Income (Loss) | Information regarding amounts reclassified out of each component of AOCI was as follows: AOCI Components Amounts Reclassified from AOCI Consolidated Statement of Operations and Comprehensive Income (Loss) Locations Three Months Six Months 2016 2015 2016 2015 (In millions) Net unrealized investment gains (losses): Net unrealized investment gains (losses) $ 21 $ (8 ) $ (25 ) $ 11 Net investment gains (losses) Net unrealized investment gains (losses) 2 2 (1 ) 13 Net investment income Net unrealized investment gains (losses) — (1 ) — (5 ) Net derivative gains (losses) Net unrealized investment gains (losses), before income tax 23 (7 ) (26 ) 19 Income tax (expense) benefit (8 ) 2 9 (7 ) Net unrealized investment gains (losses), net of income tax 15 (5 ) (17 ) 12 Unrealized gains (losses) on derivatives - cash flow hedges: Interest rate swaps $ 12 $ — $ 12 $ 1 Net derivative gains (losses) Interest rate swaps — 1 1 1 Net investment income Interest rate forwards (1 ) — 1 1 Net derivative gains (losses) Interest rate forwards 1 — 2 1 Net investment income Foreign currency swaps (1 ) 2 1 (2 ) Net derivative gains (losses) Credit forwards — — — (1 ) Net derivative gains (losses) Gains (losses) on cash flow hedges, before income tax 11 3 17 1 Income tax (expense) benefit (4 ) (1 ) (6 ) — Gains (losses) on cash flow hedges, net of income tax 7 2 11 1 Total reclassifications, net of income tax $ 22 $ (3 ) $ (6 ) $ 13 |
Other Expenses (Tables)
Other Expenses (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Other Income and Expenses [Abstract] | |
Other Expenses | Information on other expenses was as follows: Three Months Six Months 2016 2015 2016 2015 (In millions) Compensation $ 98 $ 111 $ 220 $ 236 Commissions 109 150 272 314 Volume-related costs 31 12 62 59 Affiliated expense on ceded and assumed reinsurance 73 71 136 158 Capitalization of DAC (68 ) (86 ) (161 ) (185 ) Amortization of DAC and VOBA (282 ) 57 (103 ) 252 Interest expense on debt 19 18 36 36 Premium taxes, licenses and fees 13 14 29 22 Professional services 21 4 26 10 Rent and related expenses 15 13 29 30 Other 102 81 210 160 Total other expenses $ 131 $ 445 $ 756 $ 1,092 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Reinsurance Disclosure [Line Items] | |
Effects of reinsurance | Information regarding the significant effects of affiliated reinsurance included on the consolidated statements of operations and comprehensive income (loss) was as follows: Three Months Six Months 2016 2015 2016 2015 (In millions) Premiums Reinsurance assumed $ 7 $ 12 $ 52 $ 37 Reinsurance ceded (237 ) (215 ) (464 ) (415 ) Net premiums $ (230 ) $ (203 ) $ (412 ) $ (378 ) Universal life and investment-type product policy fees Reinsurance assumed $ 30 $ 33 $ 59 $ 64 Reinsurance ceded (74 ) (99 ) (181 ) (186 ) Net universal life and investment-type product policy fees $ (44 ) $ (66 ) $ (122 ) $ (122 ) Other revenues Reinsurance assumed $ — $ — $ — $ — Reinsurance ceded 340 64 391 122 Net other revenues $ 340 $ 64 $ 391 $ 122 Policyholder benefits and claims Reinsurance assumed $ 14 $ 31 $ 58 $ 66 Reinsurance ceded (457 ) (244 ) (694 ) (484 ) Net policyholder benefits and claims $ (443 ) $ (213 ) $ (636 ) $ (418 ) Interest credited to policyholder account balances Reinsurance assumed $ 19 $ 19 $ 38 $ 38 Reinsurance ceded (36 ) (34 ) (72 ) (71 ) Net interest credited to policyholder account balances $ (17 ) $ (15 ) $ (34 ) $ (33 ) Other expenses Reinsurance assumed $ (10 ) $ 9 $ 21 $ 24 Reinsurance ceded (44 ) 33 (44 ) 83 Net other expenses $ (54 ) $ 42 $ (23 ) $ 107 Information regarding the significant effects of affiliated reinsurance included on the consolidated balance sheets was as follows at: June 30, 2016 December 31, 2015 Assumed Ceded Assumed Ceded (In millions) Assets Premiums, reinsurance and other receivables $ 77 $ 9,173 $ 129 $ 12,746 Deferred policy acquisition costs and value of business acquired 157 (773 ) 120 (861 ) Total assets $ 234 $ 8,400 $ 249 $ 11,885 Liabilities Future policy benefits $ 635 $ (245 ) $ 630 $ (70 ) Policyholder account balances 1,297 — 897 — Other policy-related balances 1,740 707 1,785 755 Other liabilities 19 5,349 27 4,691 Total liabilities $ 3,691 $ 5,811 $ 3,339 $ 5,376 |
Business, Basis of Presentati26
Business, Basis of Presentation and Summary of Significant Accounting Policies (Narrative) (Details) | 6 Months Ended |
Jun. 30, 2016Segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of segments | 2 |
Segment Information (Earnings)
Segment Information (Earnings) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Revenues | ||||
Premiums | $ 202 | $ 253 | $ 511 | $ 536 |
Universal life and investment-type product policy fees | 678 | 711 | 1,322 | 1,429 |
Net investment income | 678 | 689 | 1,305 | 1,324 |
Other revenues | 397 | 130 | 506 | 250 |
Net investment gains (losses) | 15 | (5) | (33) | 37 |
Net derivative gains (losses) | (3,230) | (17) | (3,235) | 68 |
Total revenues | (1,260) | 1,761 | 376 | 3,644 |
Expenses | ||||
Policyholder benefits and claims | 813 | 582 | 1,394 | 1,174 |
Interest credited to policyholder account balances | 239 | 262 | 477 | 519 |
Capitalization of DAC | (68) | (86) | (161) | (185) |
Amortization of DAC and VOBA | (282) | 57 | (103) | 252 |
Interest expense on debt | 19 | 18 | 36 | 36 |
Other expenses | 462 | 456 | 984 | 989 |
Total expenses | 1,183 | 1,289 | 2,627 | 2,785 |
Provision for income tax expense (benefit) | (886) | 132 | (855) | 235 |
Net income (loss) | (1,557) | 340 | (1,396) | 624 |
Operating Segments | ||||
Revenues | ||||
Premiums | 202 | 253 | 511 | 536 |
Universal life and investment-type product policy fees | 608 | 644 | 1,186 | 1,296 |
Net investment income | 741 | 743 | 1,433 | 1,439 |
Other revenues | 397 | 130 | 506 | 250 |
Net investment gains (losses) | 0 | 0 | 0 | 0 |
Net derivative gains (losses) | 0 | 0 | 0 | 0 |
Total revenues | 1,948 | 1,770 | 3,636 | 3,521 |
Expenses | ||||
Policyholder benefits and claims | 678 | 479 | 1,235 | 982 |
Interest credited to policyholder account balances | 238 | 261 | 475 | 517 |
Capitalization of DAC | (68) | (86) | (161) | (185) |
Amortization of DAC and VOBA | 377 | 164 | 498 | 335 |
Interest expense on debt | 17 | 17 | 34 | 34 |
Other expenses | 451 | 456 | 959 | 989 |
Total expenses | 1,693 | 1,291 | 3,040 | 2,672 |
Provision for income tax expense (benefit) | 53 | 134 | 140 | 231 |
Operating earnings | 202 | 345 | 456 | 618 |
Operating Segments | Retail | ||||
Revenues | ||||
Premiums | 196 | 223 | 414 | 494 |
Universal life and investment-type product policy fees | 598 | 636 | 1,161 | 1,279 |
Net investment income | 557 | 523 | 1,068 | 1,027 |
Other revenues | 396 | 128 | 504 | 246 |
Net investment gains (losses) | 0 | 0 | 0 | 0 |
Net derivative gains (losses) | 0 | 0 | 0 | 0 |
Total revenues | 1,747 | 1,510 | 3,147 | 3,046 |
Expenses | ||||
Policyholder benefits and claims | 564 | 349 | 973 | 734 |
Interest credited to policyholder account balances | 215 | 233 | 429 | 461 |
Capitalization of DAC | (55) | (70) | (130) | (144) |
Amortization of DAC and VOBA | 372 | 159 | 486 | 323 |
Interest expense on debt | 0 | 0 | 0 | 0 |
Other expenses | 418 | 418 | 879 | 890 |
Total expenses | 1,514 | 1,089 | 2,637 | 2,264 |
Provision for income tax expense (benefit) | 47 | 119 | 117 | 217 |
Operating earnings | 186 | 302 | 393 | 565 |
Operating Segments | Corporate Benefit Funding | ||||
Revenues | ||||
Premiums | 2 | 3 | 14 | 7 |
Universal life and investment-type product policy fees | 10 | 8 | 25 | 17 |
Net investment income | 186 | 231 | 376 | 449 |
Other revenues | 1 | 1 | 2 | 2 |
Net investment gains (losses) | 0 | 0 | 0 | 0 |
Net derivative gains (losses) | 0 | 0 | 0 | 0 |
Total revenues | 199 | 243 | 417 | 475 |
Expenses | ||||
Policyholder benefits and claims | 104 | 109 | 209 | 206 |
Interest credited to policyholder account balances | 23 | 28 | 46 | 56 |
Capitalization of DAC | 0 | 0 | 0 | 0 |
Amortization of DAC and VOBA | 0 | 0 | 0 | 0 |
Interest expense on debt | 0 | 0 | 0 | 0 |
Other expenses | 6 | 4 | 17 | 16 |
Total expenses | 133 | 141 | 272 | 278 |
Provision for income tax expense (benefit) | 23 | 35 | 50 | 68 |
Operating earnings | 43 | 67 | 95 | 129 |
Operating Segments | Corporate & Other | ||||
Revenues | ||||
Premiums | 4 | 27 | 83 | 35 |
Universal life and investment-type product policy fees | 0 | 0 | 0 | 0 |
Net investment income | (2) | (11) | (11) | (37) |
Other revenues | 0 | 1 | 0 | 2 |
Net investment gains (losses) | 0 | 0 | 0 | 0 |
Net derivative gains (losses) | 0 | 0 | 0 | 0 |
Total revenues | 2 | 17 | 72 | 0 |
Expenses | ||||
Policyholder benefits and claims | 10 | 21 | 53 | 42 |
Interest credited to policyholder account balances | 0 | 0 | 0 | 0 |
Capitalization of DAC | (13) | (16) | (31) | (41) |
Amortization of DAC and VOBA | 5 | 5 | 12 | 12 |
Interest expense on debt | 17 | 17 | 34 | 34 |
Other expenses | 27 | 34 | 63 | 83 |
Total expenses | 46 | 61 | 131 | 130 |
Provision for income tax expense (benefit) | (17) | (20) | (27) | (54) |
Operating earnings | (27) | (24) | (32) | (76) |
Significant Reconciling Items | ||||
Revenues | ||||
Premiums | 0 | 0 | 0 | 0 |
Universal life and investment-type product policy fees | 70 | 67 | 136 | 133 |
Net investment income | (63) | (54) | (128) | (115) |
Other revenues | 0 | 0 | 0 | 0 |
Net investment gains (losses) | 15 | (5) | (33) | 37 |
Net derivative gains (losses) | (3,230) | (17) | (3,235) | 68 |
Total revenues | (3,208) | (9) | (3,260) | 123 |
Expenses | ||||
Policyholder benefits and claims | 135 | 103 | 159 | 192 |
Interest credited to policyholder account balances | 1 | 1 | 2 | 2 |
Capitalization of DAC | 0 | 0 | 0 | 0 |
Amortization of DAC and VOBA | (659) | (107) | (601) | (83) |
Interest expense on debt | 2 | 1 | 2 | 2 |
Other expenses | 11 | 0 | 25 | 0 |
Total expenses | (510) | (2) | (413) | 113 |
Provision for income tax expense (benefit) | $ (939) | $ (2) | $ (995) | $ 4 |
Segment Information (Total Asse
Segment Information (Total Assets) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 214,837 | $ 202,362 |
Retail | ||
Segment Reporting Information [Line Items] | ||
Total assets | 177,712 | 167,142 |
Corporate Benefit Funding | ||
Segment Reporting Information [Line Items] | ||
Total assets | 23,591 | 25,043 |
Corporate & Other | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ 13,534 | $ 10,177 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) | 6 Months Ended |
Jun. 30, 2016Segment | |
Segment Reporting [Abstract] | |
Number of segments | 2 |
Insurance (Guarantees Related t
Insurance (Guarantees Related to Annuity Contracts) (Details) - Variable Annuity Guarantees: - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Guaranteed Death Benefits | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Total account value | $ 103,043 | $ 103,830 |
Separate account value | 98,022 | 98,897 |
Net amount at risk | $ 7,394 | $ 8,168 |
Average attained age of contractholders | 67 years | 66 years |
Guaranteed Annuitization Benefits | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Total account value | $ 58,197 | $ 58,615 |
Separate account value | 56,830 | 57,284 |
Net amount at risk | $ 3,079 | $ 2,088 |
Average attained age of contractholders | 67 years | 66 years |
Insurance (Guarantees Related31
Insurance (Guarantees Related to Universal and Variable Life Contracts) (Details) - Universal and Variable Life Contracts - Secondary Guarantees - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Total account value (3) | $ 7,011 | $ 6,919 |
Net amount at risk | $ 90,534 | $ 90,940 |
Average attained age of policyholders | 60 years | 59 years |
Investments (Fixed Maturity and
Investments (Fixed Maturity and Equity Securities Available-For-Sale by Sector) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Available-for-sale Securities [Abstract] | |||
Amortized cost | $ 58,297 | $ 50,154 | |
Cost or Amortized Cost | 362 | 384 | |
Gross Unrealized OTTI Loss | (20) | (19) | $ (34) |
Available-for-sale Securities, Debt Securities | 64,043 | 52,409 | |
Equity securities | 390 | 409 | |
Fixed maturity securities | |||
Available-for-sale Securities [Abstract] | |||
Amortized cost | 58,297 | 50,154 | |
Available For Sale Securities Gross Unrealized Gain Accumulated Investments | 6,131 | 3,089 | |
Available For Sale Securities, Gross Unrealized Loss Accumulated Investments | 365 | 815 | |
Gross Unrealized OTTI Loss | 20 | 19 | |
Available-for-sale Securities, Debt Securities | 64,043 | 52,409 | |
U.S. corporate | |||
Available-for-sale Securities [Abstract] | |||
Amortized cost | 17,349 | 16,160 | |
Available For Sale Securities Gross Unrealized Gain Accumulated Investments | 1,798 | 979 | |
Available For Sale Securities, Gross Unrealized Loss Accumulated Investments | 130 | 393 | |
Gross Unrealized OTTI Loss | 0 | 0 | |
Available-for-sale Securities, Debt Securities | 19,017 | 16,746 | |
U.S. government and agency | |||
Available-for-sale Securities [Abstract] | |||
Amortized cost | 14,927 | 12,562 | |
Available For Sale Securities Gross Unrealized Gain Accumulated Investments | 2,838 | 1,297 | |
Available For Sale Securities, Gross Unrealized Loss Accumulated Investments | 0 | 53 | |
Gross Unrealized OTTI Loss | 0 | 0 | |
Available-for-sale Securities, Debt Securities | 17,765 | 13,806 | |
Foreign corporate | |||
Available-for-sale Securities [Abstract] | |||
Amortized cost | 5,671 | 4,995 | |
Available For Sale Securities Gross Unrealized Gain Accumulated Investments | 306 | 153 | |
Available For Sale Securities, Gross Unrealized Loss Accumulated Investments | 121 | 194 | |
Gross Unrealized OTTI Loss | 0 | 0 | |
Available-for-sale Securities, Debt Securities | 5,856 | 4,954 | |
RMBS | |||
Available-for-sale Securities [Abstract] | |||
Amortized cost | 10,398 | 8,391 | |
Available For Sale Securities Gross Unrealized Gain Accumulated Investments | 291 | 201 | |
Available For Sale Securities, Gross Unrealized Loss Accumulated Investments | 84 | 95 | |
Gross Unrealized OTTI Loss | 21 | 19 | |
Available-for-sale Securities, Debt Securities | 10,584 | 8,478 | |
State and political subdivision | |||
Available-for-sale Securities [Abstract] | |||
Amortized cost | 2,620 | 2,398 | |
Available For Sale Securities Gross Unrealized Gain Accumulated Investments | 572 | 321 | |
Available For Sale Securities, Gross Unrealized Loss Accumulated Investments | 1 | 13 | |
Gross Unrealized OTTI Loss | 0 | 1 | |
Available-for-sale Securities, Debt Securities | 3,191 | 2,705 | |
ABS | |||
Available-for-sale Securities [Abstract] | |||
Amortized cost | 3,173 | 2,694 | |
Available For Sale Securities Gross Unrealized Gain Accumulated Investments | 21 | 14 | |
Available For Sale Securities, Gross Unrealized Loss Accumulated Investments | 23 | 34 | |
Gross Unrealized OTTI Loss | 0 | 0 | |
Available-for-sale Securities, Debt Securities | 3,171 | 2,674 | |
CMBS | |||
Available-for-sale Securities [Abstract] | |||
Amortized cost | 3,333 | 2,303 | |
Available For Sale Securities Gross Unrealized Gain Accumulated Investments | 148 | 20 | |
Available For Sale Securities, Gross Unrealized Loss Accumulated Investments | 5 | 23 | |
Gross Unrealized OTTI Loss | (1) | (1) | |
Available-for-sale Securities, Debt Securities | 3,477 | 2,301 | |
Foreign government | |||
Available-for-sale Securities [Abstract] | |||
Amortized cost | 826 | 651 | |
Available For Sale Securities Gross Unrealized Gain Accumulated Investments | 157 | 104 | |
Available For Sale Securities, Gross Unrealized Loss Accumulated Investments | 1 | 10 | |
Gross Unrealized OTTI Loss | 0 | 0 | |
Available-for-sale Securities, Debt Securities | 982 | 745 | |
Equity securities | |||
Available-for-sale Securities [Abstract] | |||
Cost or Amortized Cost | 362 | 384 | |
Available For Sale Securities Gross Unrealized Gain Accumulated Investments | 41 | 39 | |
Available For Sale Securities, Gross Unrealized Loss Accumulated Investments | 13 | 14 | |
Gross Unrealized OTTI Loss | 0 | 0 | |
Equity securities | 390 | 409 | |
Non-redeemable preferred stock | |||
Available-for-sale Securities [Abstract] | |||
Cost or Amortized Cost | 201 | 217 | |
Available For Sale Securities Gross Unrealized Gain Accumulated Investments | 18 | 16 | |
Available For Sale Securities, Gross Unrealized Loss Accumulated Investments | 13 | 9 | |
Gross Unrealized OTTI Loss | 0 | 0 | |
Equity securities | 206 | 224 | |
Common stock | |||
Available-for-sale Securities [Abstract] | |||
Cost or Amortized Cost | 161 | 167 | |
Available For Sale Securities Gross Unrealized Gain Accumulated Investments | 23 | 23 | |
Available For Sale Securities, Gross Unrealized Loss Accumulated Investments | 0 | 5 | |
Gross Unrealized OTTI Loss | 0 | 0 | |
Equity securities | $ 184 | $ 185 |
Investments (Maturities of Fixe
Investments (Maturities of Fixed Maturity Securities) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Available-for-sale Securities, Debt Maturities [Abstract] | ||
Due in One Year or Less | $ 1,898 | |
Due After One Year Through Five Years | 12,214 | |
Due After Five Years Through Ten Years | 9,467 | |
Due After Ten Years | 17,814 | |
Structured Securities | 16,904 | |
Amortized cost | 58,297 | $ 50,154 |
Due in One Year or Less | 1,912 | |
Due After One Year Through Five Years | 12,737 | |
Due After Five Years Through Ten Years | 9,971 | |
Due After Ten Years | 22,191 | |
Structured Securities | 17,232 | |
Available-for-sale Securities, Debt Securities | $ 64,043 | $ 52,409 |
Investments (Continuous Gross U
Investments (Continuous Gross Unrealized Losses for Fixed Maturity and Equity Securities Available-For-Sale) (Details) $ in Millions | Jun. 30, 2016USD ($) | Dec. 31, 2015USD ($) |
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale | ||
Total number of securities in an unrealized loss position less than 12 months | 751 | 1,850 |
Total number of securities in an unrealized loss position equal to or greater than 12 months | 592 | 394 |
Fixed maturity securities | ||
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale | ||
Less than 12 months Estimated Fair Value | $ 4,181 | $ 18,228 |
Less than 12 Months Gross Unrealized Loss | 115 | 570 |
Equal to or Greater than 12 Months Estimated Fair Value | 3,459 | 1,934 |
Equal to or Greater than 12 Months Gross Unrealized Loss | 270 | 264 |
U.S. corporate | ||
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale | ||
Less than 12 months Estimated Fair Value | 906 | 4,569 |
Less than 12 Months Gross Unrealized Loss | 27 | 278 |
Equal to or Greater than 12 Months Estimated Fair Value | 1,005 | 571 |
Equal to or Greater than 12 Months Gross Unrealized Loss | 103 | 115 |
Foreign corporate | ||
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale | ||
Less than 12 months Estimated Fair Value | 687 | 1,650 |
Less than 12 Months Gross Unrealized Loss | 27 | 96 |
Equal to or Greater than 12 Months Estimated Fair Value | 712 | 605 |
Equal to or Greater than 12 Months Gross Unrealized Loss | 94 | 98 |
U.S. government and agency | ||
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale | ||
Less than 12 months Estimated Fair Value | 50 | 4,037 |
Less than 12 Months Gross Unrealized Loss | 0 | 53 |
Equal to or Greater than 12 Months Estimated Fair Value | 0 | 0 |
Equal to or Greater than 12 Months Gross Unrealized Loss | 0 | 0 |
RMBS | ||
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale | ||
Less than 12 months Estimated Fair Value | 1,318 | 4,305 |
Less than 12 Months Gross Unrealized Loss | 48 | 73 |
Equal to or Greater than 12 Months Estimated Fair Value | 842 | 495 |
Equal to or Greater than 12 Months Gross Unrealized Loss | 57 | 41 |
State and political subdivision | ||
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale | ||
Less than 12 months Estimated Fair Value | 47 | 373 |
Less than 12 Months Gross Unrealized Loss | 1 | 12 |
Equal to or Greater than 12 Months Estimated Fair Value | 6 | 19 |
Equal to or Greater than 12 Months Gross Unrealized Loss | 0 | 2 |
CMBS | ||
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale | ||
Less than 12 months Estimated Fair Value | 150 | 1,346 |
Less than 12 Months Gross Unrealized Loss | 1 | 21 |
Equal to or Greater than 12 Months Estimated Fair Value | 179 | 44 |
Equal to or Greater than 12 Months Gross Unrealized Loss | 3 | 1 |
ABS | ||
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale | ||
Less than 12 months Estimated Fair Value | 1,017 | 1,818 |
Less than 12 Months Gross Unrealized Loss | 11 | 28 |
Equal to or Greater than 12 Months Estimated Fair Value | 703 | 194 |
Equal to or Greater than 12 Months Gross Unrealized Loss | 12 | 6 |
Foreign government | ||
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale | ||
Less than 12 months Estimated Fair Value | 6 | 130 |
Less than 12 Months Gross Unrealized Loss | 0 | 9 |
Equal to or Greater than 12 Months Estimated Fair Value | 12 | 6 |
Equal to or Greater than 12 Months Gross Unrealized Loss | 1 | 1 |
Equity securities | ||
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale | ||
Less than 12 months Estimated Fair Value | 21 | 31 |
Less than 12 Months Gross Unrealized Loss | 2 | 6 |
Equal to or Greater than 12 Months Estimated Fair Value | 41 | 41 |
Equal to or Greater than 12 Months Gross Unrealized Loss | 11 | 8 |
Common stock | ||
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale | ||
Less than 12 months Estimated Fair Value | 2 | 6 |
Less than 12 Months Gross Unrealized Loss | 0 | 5 |
Equal to or Greater than 12 Months Estimated Fair Value | 1 | 1 |
Equal to or Greater than 12 Months Gross Unrealized Loss | 0 | 0 |
Non-redeemable preferred stock | ||
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale | ||
Less than 12 months Estimated Fair Value | 19 | 25 |
Less than 12 Months Gross Unrealized Loss | 2 | 1 |
Equal to or Greater than 12 Months Estimated Fair Value | 40 | 40 |
Equal to or Greater than 12 Months Gross Unrealized Loss | $ 11 | $ 8 |
Investments (Mortgage Loans by
Investments (Mortgage Loans by Portfolio Segment) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2014 |
Company-held mortgage loans held-for-investment, net | ||||
Commercial | $ 5,971 | $ 5,331 | ||
Percentage of loans receivable on commercial mortgage loans | 73.00% | 73.40% | ||
Agricultural | $ 1,557 | $ 1,460 | ||
Percentage of loans receivable on agricultural mortgage loans | 19.00% | 20.10% | ||
Residential | $ 533 | $ 335 | ||
Percentage Of Loans And Leases Receivable Consumer Mortgage To Mortgage Loans On Real Estate Commercial And Consumer Net | 6.50% | 4.60% | ||
Subtotal (1) | $ 8,061 | $ 7,126 | ||
Percentage of loans receivable on subtotal | 98.50% | 98.10% | ||
Valuation allowances | $ (41) | $ (36) | $ (30) | $ (25) |
Percentage of loans receivable on valuation allowances | (0.50%) | (0.50%) | ||
Subtotal mortgage loans, net | $ 8,020 | $ 7,090 | ||
Percentage of loans receivable on subtotal mortgage loans held-for-investment, net | 98.00% | 97.60% | ||
Total mortgage loans, net | $ 8,179 | $ 7,262 | ||
Percentage of loans receivable on commercial mortgage loans held by consolidated securitization entities - fair value option | 2.00% | 2.40% | ||
Percentage Of Mortgage Loans On Real Estate Commercial And Consumer Net To Mortgage Loans On Real Estate Commercial And Consumer Net | 100.00% | 100.00% | ||
Variable Interest Entity, Primary Beneficiary, Consolidated Securitization Entities | ||||
Company-held mortgage loans held-for-investment, net | ||||
Total mortgage loans, net | $ 159 | $ 172 |
Investments (Mortgage Loans and
Investments (Mortgage Loans and Valuation Allowance by Portfolio Segment) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Mortgage Loans on Real Estate [Line Items] | ||
Unpaid Principal Balance | $ 4 | $ 4 |
Recorded Investment | 3 | 3 |
Valuation Allowances | 0 | 0 |
Unpaid Principal Balance | 0 | 0 |
Recorded Investment | 0 | 0 |
Recorded Investment | 8,058 | 7,123 |
Valuation Allowances | 41 | 36 |
Carrying Value | 3 | 3 |
Commercial | ||
Mortgage Loans on Real Estate [Line Items] | ||
Unpaid Principal Balance | 0 | 0 |
Recorded Investment | 0 | 0 |
Valuation Allowances | 0 | 0 |
Unpaid Principal Balance | 0 | 0 |
Recorded Investment | 0 | 0 |
Recorded Investment | 5,971 | 5,331 |
Valuation Allowances | 32 | 28 |
Carrying Value | 0 | 0 |
Agricultural | ||
Mortgage Loans on Real Estate [Line Items] | ||
Unpaid Principal Balance | 4 | 4 |
Recorded Investment | 3 | 3 |
Valuation Allowances | 0 | 0 |
Unpaid Principal Balance | 0 | 0 |
Recorded Investment | 0 | 0 |
Recorded Investment | 1,554 | 1,457 |
Valuation Allowances | 5 | 5 |
Carrying Value | 3 | 3 |
Residential | ||
Mortgage Loans on Real Estate [Line Items] | ||
Unpaid Principal Balance | 0 | 0 |
Recorded Investment | 0 | 0 |
Valuation Allowances | 0 | 0 |
Unpaid Principal Balance | 0 | 0 |
Recorded Investment | 0 | 0 |
Recorded Investment | 533 | 335 |
Valuation Allowances | 4 | 3 |
Carrying Value | $ 0 | $ 0 |
Investments (Valuation Allowanc
Investments (Valuation Allowance Rollforward by Portfolio Segment) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Mortgage Loans on Real Estate [Line Items] | ||
Balance, beginning of period | $ 36 | $ 25 |
Provision (release) | 5 | 5 |
Balance, end of period | 41 | 30 |
Commercial | ||
Mortgage Loans on Real Estate [Line Items] | ||
Balance, beginning of period | 28 | 21 |
Provision (release) | 4 | 4 |
Balance, end of period | 32 | 25 |
Agricultural | ||
Mortgage Loans on Real Estate [Line Items] | ||
Balance, beginning of period | 5 | 4 |
Provision (release) | 0 | 0 |
Balance, end of period | 5 | 4 |
Residential | ||
Mortgage Loans on Real Estate [Line Items] | ||
Balance, beginning of period | 3 | 0 |
Provision (release) | 1 | 1 |
Balance, end of period | $ 4 | $ 1 |
Investments (Credit Quality of
Investments (Credit Quality of Commercial Mortgage Loans) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | $ 5,971 | $ 5,331 |
% of Total | 100.00% | 100.00% |
Estimated Fair Value | $ 6,364 | $ 5,534 |
% of Total | 100.00% | 100.00% |
Less than 65% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | $ 5,468 | $ 4,910 |
% of Total | 91.60% | 92.10% |
Estimated Fair Value | $ 5,853 | $ 5,124 |
% of Total | 92.00% | 92.60% |
65% to 75% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | $ 427 | $ 338 |
% of Total | 7.10% | 6.30% |
Estimated Fair Value | $ 438 | $ 330 |
% of Total | 6.90% | 6.00% |
76% to 80% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | $ 0 | $ 0 |
% of Total | 0.00% | 0.00% |
Estimated Fair Value | $ 0 | $ 0 |
% of Total | 0.00% | 0.00% |
Greater than 80% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | $ 76 | $ 83 |
% of Total | 1.30% | 1.60% |
Estimated Fair Value | $ 73 | $ 80 |
% of Total | 1.10% | 1.40% |
Greater than 1.20x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | $ 5,632 | $ 5,033 |
Greater than 1.20x | Less than 65% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 5,157 | 4,659 |
Greater than 1.20x | 65% to 75% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 413 | 330 |
Greater than 1.20x | 76% to 80% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 0 | 0 |
Greater than 1.20x | Greater than 80% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 62 | 44 |
1.00x - 1.20x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 191 | 176 |
1.00x - 1.20x | Less than 65% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 177 | 151 |
1.00x - 1.20x | 65% to 75% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 0 | 0 |
1.00x - 1.20x | 76% to 80% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 0 | 0 |
1.00x - 1.20x | Greater than 80% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 14 | 25 |
Less than 1.00x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 148 | 122 |
Less than 1.00x | Less than 65% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 134 | 100 |
Less than 1.00x | 65% to 75% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 14 | 8 |
Less than 1.00x | 76% to 80% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 0 | 0 |
Less than 1.00x | Greater than 80% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | $ 0 | $ 14 |
Investments (Credit Quality o39
Investments (Credit Quality of Agricultural and Residential Mortgage Loans) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Agricultural Mortgage Loans - by Credit Quality Indicator: | ||
Recorded Investment | $ 1,557 | $ 1,460 |
% of Total | 100.00% | 100.00% |
Residential Mortgage Loans By Credit Quality Indicator [Abstract] | ||
Recorded Investment | $ 533 | $ 335 |
% of Total | 100.00% | 100.00% |
Less than 65% | ||
Agricultural Mortgage Loans - by Credit Quality Indicator: | ||
Recorded Investment | $ 1,451 | $ 1,366 |
% of Total | 93.20% | 93.60% |
65% to 75% | ||
Agricultural Mortgage Loans - by Credit Quality Indicator: | ||
Recorded Investment | $ 106 | $ 94 |
% of Total | 6.80% | 6.40% |
Performing | ||
Residential Mortgage Loans By Credit Quality Indicator [Abstract] | ||
Recorded Investment | $ 525 | $ 331 |
% of Total | 98.50% | 98.80% |
Nonperforming | ||
Residential Mortgage Loans By Credit Quality Indicator [Abstract] | ||
Recorded Investment | $ 8 | $ 4 |
% of Total | 1.50% | 1.20% |
Investments (Past Due and Inter
Investments (Past Due and Interest Accrual Status of Mortgage Loans) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Past Due | $ 8 | $ 4 |
Nonaccrual Status | 8 | 4 |
Commercial | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Past Due | 0 | 0 |
Nonaccrual Status | 0 | 0 |
Agricultural | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Past Due | 0 | 0 |
Nonaccrual Status | 0 | 0 |
Residential | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Past Due | 8 | 4 |
Nonaccrual Status | $ 8 | $ 4 |
Investments (Net Unrealized Inv
Investments (Net Unrealized Investment Gains Losses) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Components of net unrealized investment gains (losses) included in accumulated other comprehensive loss | |||
Fixed maturity securities | $ 5,757 | $ 2,265 | |
Fixed maturity securities with noncredit OTTI losses included in AOCI | (20) | (19) | $ (34) |
Total fixed maturity securities | 5,737 | 2,246 | |
Equity securities | 71 | 54 | |
Derivatives | 438 | 368 | |
Other | 84 | 78 | |
Subtotal | 6,330 | 2,746 | |
Future policy benefits | (1,979) | (56) | |
DAC and VOBA related to noncredit OTTI losses recognized in AOCI | (1) | (1) | |
DAC, VOBA and DSI | (243) | (198) | |
Subtotal | (2,223) | (255) | |
Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI | 8 | 7 | |
Deferred income tax benefit (expense) | (1,417) | (844) | |
Net unrealized investment gains (losses) | $ 2,698 | $ 1,654 |
Investments (Changes in Fixed M
Investments (Changes in Fixed Maturity Securities with Noncredit OTTI Losses) (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Changes in fixed maturity securities with noncredit OTTI losses in accumulated other comprehensive income (loss) | ||
Balance, beginning of period | $ (19) | $ (34) |
Noncredit OTTI losses and subsequent changes recognized | 3 | 9 |
Securities sold with previous noncredit OTTI loss | 3 | 17 |
Subsequent changes in estimated fair value | (7) | (11) |
Balance, end of period | $ (20) | $ (19) |
Investments (Changes in Net Unr
Investments (Changes in Net Unrealized Investment Gains Losses) (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Changes In Net Unrealized Investment Gains Losses Included In Accumulated Other Comprehensive Loss [Abstract] | |
Balance, beginning of period | $ 1,654 |
Fixed maturity securities on which noncredit OTTI losses have been recognized | (1) |
Unrealized investment gains (losses) during the period | 3,585 |
Unrealized investment gains (losses) relating to: | |
Future policy benefits | (1,923) |
DAC, VOBA and DSI | (45) |
Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI | 1 |
Deferred income tax benefit (expense) | (573) |
Balance, end of period | 2,698 |
Change in net unrealized investment gains (losses) | $ 1,044 |
Investments (Securities Lending
Investments (Securities Lending) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Securities Financing Transaction [Line Items] | ||
Cash collateral on deposit from counterparties | $ 10,134 | $ 8,981 |
Security collateral on deposit from counterparties | 117 | 23 |
Reinvestment portfolio — estimated fair value | 10,192 | 8,938 |
Amortized cost | ||
Securities Financing Transaction [Line Items] | ||
Securities loaned | 8,149 | 8,047 |
Estimated fair value | ||
Securities Financing Transaction [Line Items] | ||
Securities loaned | $ 9,983 | $ 8,830 |
Investments (Securities Lendi45
Investments (Securities Lending Remaining Tenor) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Securities Financing Transaction [Line Items] | ||
Total | $ 10,134 | $ 8,981 |
% of Total | 100.00% | 100.00% |
Open | ||
Securities Financing Transaction [Line Items] | ||
Total | $ 2,530 | $ 2,641 |
1 Month or Less | ||
Securities Financing Transaction [Line Items] | ||
Total | 3,055 | 4,423 |
1 to 6 Months | ||
Securities Financing Transaction [Line Items] | ||
Total | 4,549 | 1,917 |
U.S. government and agency | ||
Securities Financing Transaction [Line Items] | ||
Total | $ 8,498 | $ 7,109 |
% of Total | 83.80% | 79.10% |
U.S. government and agency | Open | ||
Securities Financing Transaction [Line Items] | ||
Total | $ 2,525 | $ 2,631 |
U.S. government and agency | 1 Month or Less | ||
Securities Financing Transaction [Line Items] | ||
Total | 2,678 | 3,140 |
U.S. government and agency | 1 to 6 Months | ||
Securities Financing Transaction [Line Items] | ||
Total | 3,295 | 1,338 |
Agency RMBS | ||
Securities Financing Transaction [Line Items] | ||
Total | $ 1,254 | $ 1,518 |
% of Total | 12.40% | 16.90% |
Agency RMBS | Open | ||
Securities Financing Transaction [Line Items] | ||
Total | $ 0 | $ 0 |
Agency RMBS | 1 Month or Less | ||
Securities Financing Transaction [Line Items] | ||
Total | 0 | 939 |
Agency RMBS | 1 to 6 Months | ||
Securities Financing Transaction [Line Items] | ||
Total | 1,254 | 579 |
Foreign government | ||
Securities Financing Transaction [Line Items] | ||
Total | $ 46 | $ 43 |
% of Total | 0.50% | 0.50% |
Foreign government | Open | ||
Securities Financing Transaction [Line Items] | ||
Total | $ 0 | $ 1 |
Foreign government | 1 Month or Less | ||
Securities Financing Transaction [Line Items] | ||
Total | 46 | 42 |
Foreign government | 1 to 6 Months | ||
Securities Financing Transaction [Line Items] | ||
Total | 0 | 0 |
Foreign corporate | ||
Securities Financing Transaction [Line Items] | ||
Total | $ 12 | $ 0 |
% of Total | 0.10% | 0.00% |
Foreign corporate | Open | ||
Securities Financing Transaction [Line Items] | ||
Total | $ 0 | $ 0 |
Foreign corporate | 1 Month or Less | ||
Securities Financing Transaction [Line Items] | ||
Total | 12 | 0 |
Foreign corporate | 1 to 6 Months | ||
Securities Financing Transaction [Line Items] | ||
Total | 0 | 0 |
U.S. corporate | ||
Securities Financing Transaction [Line Items] | ||
Total | $ 324 | $ 311 |
% of Total | 3.20% | 3.50% |
U.S. corporate | Open | ||
Securities Financing Transaction [Line Items] | ||
Total | $ 5 | $ 9 |
U.S. corporate | 1 Month or Less | ||
Securities Financing Transaction [Line Items] | ||
Total | 319 | 302 |
U.S. corporate | 1 to 6 Months | ||
Securities Financing Transaction [Line Items] | ||
Total | $ 0 | $ 0 |
Investments (Invested Assets on
Investments (Invested Assets on Deposit, Held In Trust and Pledged as Collateral) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Investments, Debt and Equity Securities [Abstract] | ||
Invested assets on deposit (regulatory deposits) | $ 8,171 | $ 7,245 |
Invested assets held-in-trust (reinsurance agreements) | 1,121 | 952 |
Invested assets pledged as collateral | 5,168 | 2,801 |
Total invested assets on deposit, held in trust and pledged as collateral | $ 14,460 | $ 10,998 |
Investments (Consolidated Varia
Investments (Consolidated Variable Interest Entities) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Assets: | ||
Accrued investment income relating to variable interest entities | $ 536 | $ 505 |
Liabilities | ||
Long-term debt, at estimated fair value, relating to variable interest entities | 817 | 836 |
Other liabilities relating to variable interest entities | 10,905 | 7,682 |
Consolidated securitization entities | ||
Assets: | ||
Mortgage loans (commercial mortgage loans) | 159 | 172 |
Accrued investment income relating to variable interest entities | 1 | 1 |
Total assets | 160 | 173 |
Liabilities | ||
Long-term debt, at estimated fair value, relating to variable interest entities | 35 | 48 |
Other liabilities relating to variable interest entities | 1 | 1 |
Total liabilities | $ 36 | $ 49 |
Investments (Unconsolidated Var
Investments (Unconsolidated Variable Interest Entities) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Variable Interest Entity [Line Items] | ||
Carrying Amount Asset | $ 19,602 | $ 15,373 |
Carrying Amount liability | 20,214 | 15,661 |
Other limited partnership interests | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount Asset | 1,576 | 1,367 |
Carrying Amount liability | 2,175 | 1,647 |
Real estate joint ventures | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount Asset | 256 | 35 |
Carrying Amount liability | 262 | 38 |
Other investments | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount Asset | 59 | 57 |
Carrying Amount liability | 66 | 62 |
Structured securities (RMBS, CMBS and ABS) | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount Asset | 17,232 | 13,453 |
Carrying Amount liability | 17,232 | 13,453 |
U.S. and foreign corporate | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount Asset | 479 | 461 |
Carrying Amount liability | $ 479 | $ 461 |
Investments (Net Investment Inc
Investments (Net Investment Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Net Investment Income [Line Items] | ||||
Gross Investment Income, Operating | $ 676 | $ 684 | $ 1,300 | $ 1,315 |
Less: Investment expenses | 39 | 29 | 77 | 56 |
Net investment income | 678 | 689 | 1,305 | 1,324 |
Securities Investment | ||||
Net Investment Income [Line Items] | ||||
Gross Investment Income, Operating | 715 | 713 | 1,377 | 1,371 |
Fixed maturity securities | ||||
Net Investment Income [Line Items] | ||||
Gross Investment Income, Operating | 556 | 506 | 1,071 | 993 |
Equity securities | ||||
Net Investment Income [Line Items] | ||||
Gross Investment Income, Operating | 4 | 4 | 9 | 8 |
Mortgage loans | ||||
Net Investment Income [Line Items] | ||||
Gross Investment Income, Operating | 106 | 83 | 194 | 155 |
Policy loans | ||||
Net Investment Income [Line Items] | ||||
Gross Investment Income, Operating | 15 | 13 | 29 | 26 |
Real estate and real estate joint ventures | ||||
Net Investment Income [Line Items] | ||||
Gross Investment Income, Operating | 2 | 44 | 15 | 66 |
Other limited partnership interests | ||||
Net Investment Income [Line Items] | ||||
Gross Investment Income, Operating | 20 | 55 | 41 | 107 |
Cash, cash equivalents and short-term investments | ||||
Net Investment Income [Line Items] | ||||
Gross Investment Income, Operating | 5 | 3 | 9 | 5 |
Operating joint venture | ||||
Net Investment Income [Line Items] | ||||
Gross Investment Income, Operating | 5 | 6 | 7 | 8 |
Other | ||||
Net Investment Income [Line Items] | ||||
Gross Investment Income, Operating | 2 | (1) | 2 | 3 |
FVO CSEs — interest income — commercial mortgage loans | Variable Interest Entity, Primary Beneficiary, Consolidated Securitization Entities | ||||
Net Investment Income [Line Items] | ||||
Gross Investment Income, Operating | $ 2 | $ 5 | $ 5 | $ 9 |
Investments (Components of Net
Investments (Components of Net Investment Gains Losses) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Marketable Securities, Gain (Loss) [Abstract] | ||||
Fixed maturity securities — net gains (losses) on sales and disposals | $ 21 | $ (9) | $ (12) | $ 16 |
Equity securities — net gains (losses) on sales and disposals | 0 | 3 | 4 | 2 |
Other net investment gains (losses): | ||||
Mortgage loans | (4) | (4) | (6) | (5) |
Real estate and real estate joint ventures | 0 | 6 | (1) | 29 |
Other limited partnership interests | (2) | 0 | (6) | (1) |
Other | 3 | (3) | 5 | (1) |
Subtotal | 18 | (8) | (32) | 36 |
FVO CSEs - changes in estimated fair value: | ||||
Commercial mortgage loans | (1) | 1 | 0 | (2) |
Long-term debt — related to commercial mortgage loans | 0 | 1 | 0 | 2 |
Non-investment portfolio gains (losses) | (2) | 1 | (1) | 1 |
Subtotal | (3) | 3 | (1) | 1 |
Total net investment gains (losses) | 15 | (5) | (33) | 37 |
Fixed maturity securities | ||||
Marketable Securities, Gain (Loss) [Abstract] | ||||
Total OTTI losses recognized in earnings | 0 | 0 | (15) | (3) |
Net investment gains (losses) | 21 | (9) | (27) | 13 |
Industrial | ||||
Marketable Securities, Gain (Loss) [Abstract] | ||||
Total OTTI losses recognized in earnings | 0 | 0 | (13) | (1) |
U.S. corporate and foreign corporate securities | ||||
Marketable Securities, Gain (Loss) [Abstract] | ||||
Total OTTI losses recognized in earnings | 0 | 0 | (13) | (1) |
RMBS | ||||
Marketable Securities, Gain (Loss) [Abstract] | ||||
Total OTTI losses recognized in earnings | 0 | 0 | (2) | (2) |
Equity securities | ||||
Marketable Securities, Gain (Loss) [Abstract] | ||||
Total OTTI losses recognized in earnings | 0 | (1) | (1) | (1) |
Net investment gains (losses) | 0 | 2 | 3 | 1 |
Common stock | ||||
Marketable Securities, Gain (Loss) [Abstract] | ||||
Total OTTI losses recognized in earnings | $ 0 | $ (1) | $ (1) | $ (1) |
Investments (Sales or Disposals
Investments (Sales or Disposals and Impairments of Fixed Maturity and Equity Securities) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Fixed maturity securities | ||||
Components of Sales or Disposals of Fixed Maturity and Equity Securities | ||||
Proceeds | $ 5,035 | $ 7,948 | $ 13,873 | $ 15,932 |
Gross investment gains | 38 | 32 | 71 | 80 |
Gross investment losses | (17) | (41) | (83) | (64) |
Total OTTI losses recognized in earnings: | ||||
Total OTTI losses recognized in earnings | 0 | 0 | (15) | (3) |
Net investment gains (losses) | 21 | (9) | (27) | 13 |
Equity securities | ||||
Components of Sales or Disposals of Fixed Maturity and Equity Securities | ||||
Proceeds | 2 | 12 | 6 | 14 |
Gross investment gains | 0 | 3 | 4 | 3 |
Gross investment losses | 0 | 0 | 0 | (1) |
Total OTTI losses recognized in earnings: | ||||
Total OTTI losses recognized in earnings | 0 | (1) | (1) | (1) |
Net investment gains (losses) | $ 0 | $ 2 | $ 3 | $ 1 |
Investments (Credit Loss Rollfo
Investments (Credit Loss Rollforward) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings, Additions, No Previous Impairment | $ 0 | $ 1 | $ 0 | $ 1 |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | ||||
Balance, beginning of period | 51 | 56 | 52 | 57 |
Additions: | ||||
Additional impairments — credit loss OTTI on securities previously impaired | 1 | 0 | 2 | 2 |
Reductions: | ||||
Sales (maturities, pay downs or prepayments) of securities previously impaired as credit loss OTTI | (3) | (8) | (5) | (10) |
Increase in cash flows — accretion of previous credit loss OTTI | 0 | (1) | 0 | (2) |
Balance, end of period | $ 49 | $ 48 | $ 49 | $ 48 |
Investments (Related Party Inve
Investments (Related Party Investment Transactions) (Details) - Affiliated Entity - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Invested Assets Transferred To and From Affiliates | ||||
Estimated fair value of invested assets transferred to affiliates | $ 0 | $ 101 | $ 0 | $ 101 |
Amortized cost of invested assets transferred to affiliates | 0 | 95 | 0 | 95 |
Net investment gains (losses) recognized on transfers | 0 | 6 | 0 | 6 |
Estimated fair value of invested assets transferred from affiliates | $ 4,226 | $ 0 | $ 4,463 | $ 525 |
Investments (Fixed Maturity a54
Investments (Fixed Maturity and Equity Securities Available-For-Sale - Narrative) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule of Available-for-sale Securities [Line Items] | |||
Other Than Temporary Impairments On Debt Securities Transferred To Other Comprehensive Income Loss | $ 20 | $ 19 | $ 34 |
Summary of Certain Fixed Maturity Securities | |||
Available-for-sale Securities, Debt Securities | 64,043 | 52,409 | |
Non-income producing fixed maturity securities | |||
Summary of Certain Fixed Maturity Securities | |||
Available-for-sale Securities, Debt Securities | 42 | 11 | |
Available For Sale Securities Gross Unrealized Gain Accumulated Investments | 5 | 1 | |
CMBS | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Other Than Temporary Impairments On Debt Securities Transferred To Other Comprehensive Income Loss | 1 | 1 | |
Summary of Certain Fixed Maturity Securities | |||
Available-for-sale Securities, Debt Securities | 3,477 | 2,301 | |
Available For Sale Securities Gross Unrealized Gain Accumulated Investments | $ 148 | $ 20 |
Investments (Evaluation of Avai
Investments (Evaluation of Available-For-Sale Securities for OTTI and Evaluating Temporarily Impaired AFS Securities - Narrative) (Details) $ in Millions | 6 Months Ended | |
Jun. 30, 2016USD ($)Contracts | Dec. 31, 2015USD ($) | |
Schedule of Available-for-sale Securities [Line Items] | ||
Equity Securities Available For Sale With Gross Unrealized Loss Of Equal To Or Greater Than Stated Percentage | 20.00% | |
Fixed maturity securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Change in Net Unrealized Holding Gain (Loss) before Taxes | $ (449) | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | 385 | |
Gross Unrealized Temporary Loss | 270 | $ 264 |
Equity securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Change in Net Unrealized Holding Gain (Loss) before Taxes | (1) | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | 13 | |
Gross Unrealized Temporary Loss | 11 | 8 |
Non-redeemable preferred stock | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Unrealized Temporary Loss | 11 | $ 8 |
Twenty Percent Or More | Six Months Or Greater | Fixed maturity securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ 84 | |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | Contracts | 34 | |
Twenty Percent Or More | Six Months Or Greater | Fixed maturity securities | External Credit Rating, Investment Grade | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ 65 | |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | Contracts | 13 | |
Percentage Of Gross Unrealized Loss | 77.00% | |
Twenty Percent Or More | Six Months Or Greater | Fixed maturity securities | External Credit Rating, Non Investment Grade | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ 19 | |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | Contracts | 21 | |
Percentage Of Gross Unrealized Loss | 23.00% | |
Twenty Percent Or More | Twelve months or greater | Equity securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | Contracts | 2 | |
Gross Unrealized Temporary Loss | $ 7 | |
Twenty Percent Or More | Twelve months or greater | Non-redeemable preferred stock | Aaa Aa | Banks, Trust and Insurance, Equities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Percentage Of Gross Unrealized Loss | 43.00% |
Investments (Mortgage Loans - N
Investments (Mortgage Loans - Narrative) (Details) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Dec. 31, 2015USD ($) | |
Mortgage Loans on Real Estate [Line Items] | |||||
Financing Receivable, Significant Purchases | $ 192 | $ 40 | $ 231 | $ 40 | |
Financing Receivable, Modifications, Subsequent Default, Number of Contracts | 0 | 0 | 0 | 0 | |
Percentage of Mortgage Loans Classified as Performing | 99.00% | 99.00% | 99.00% | ||
Commercial | |||||
Mortgage Loans on Real Estate [Line Items] | |||||
Impaired Financing Receivable, Average Recorded Investment | $ 0 | $ 0 | $ 0 | $ 0 | |
Agricultural | |||||
Mortgage Loans on Real Estate [Line Items] | |||||
Impaired Financing Receivable, Average Recorded Investment | 3 | 3 | 3 | 3 | |
Estimated fair value of mortgage loans held-for-investment | 1,600 | 1,600 | $ 1,500 | ||
Residential | |||||
Mortgage Loans on Real Estate [Line Items] | |||||
Impaired Financing Receivable, Average Recorded Investment | 0 | $ 0 | 0 | $ 0 | |
Estimated fair value of mortgage loans held-for-investment | $ 546 | $ 546 | $ 345 |
Investments (Cash Equivalents -
Investments (Cash Equivalents - Narrative) (Details) - USD ($) $ in Billions | Jun. 30, 2016 | Dec. 31, 2015 |
Investments, Debt and Equity Securities [Abstract] | ||
Cash equivalents | $ 2 | $ 1.1 |
Investments (Concentrations of
Investments (Concentrations of Credit Risk - Narrative) (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2016 | Dec. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | ||
Securities holdings exposure in single issuer greater than stated percentage of Company's equity | 10.00% | |
Investments in any counterparty that were greater than 10% of equity | $ 0 | $ 0 |
Investments (Securities Lendi59
Investments (Securities Lending - Narrative) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Amortized cost | ||
Securities Financing Transaction [Line Items] | ||
Securities Loaned | $ 8,149 | $ 8,047 |
Amortized cost | Reserve for Off-balance Sheet Activities | ||
Securities Financing Transaction [Line Items] | ||
Securities Loaned | 106 | |
Estimated fair value | ||
Securities Financing Transaction [Line Items] | ||
Securities Loaned | 9,983 | $ 8,830 |
Estimated fair value | Reserve for Off-balance Sheet Activities | ||
Securities Financing Transaction [Line Items] | ||
Securities Loaned | $ 106 |
Investments (Securities Lendi60
Investments (Securities Lending Remaining Tenor - Narrative) (Details) - Estimated fair value $ in Billions | Jun. 30, 2016USD ($) |
Securities Financing Transaction [Line Items] | |
Securities Loaned, Not Subject to Master Netting Arrangement | $ 2.5 |
Securities Investment | |
Securities Financing Transaction [Line Items] | |
Percentage of Reinvestment Portfolio in Fixed Maturity Securities | 68.00% |
Minimum | U.S. government and agency | |
Securities Financing Transaction [Line Items] | |
Percentage Of US Treasury And Agency Securities At Estimated Fair Value Of Securities On Loan Relating To Cash Collateral On Open | 99.00% |
Investments (Repurchase Agreeme
Investments (Repurchase Agreement - Narrative) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Offsetting Assets [Line Items] | ||
Fair Value of Securities Received as Collateral that Have Been Resold or Repledged | $ 106 | |
Receivable Under Reverse Repurchase Agreements | 300 | |
Amount Offset in Balance Sheet | 300 | |
Payable Under Repurchase Agreements | 300 | |
U.S. and foreign corporate | ||
Offsetting Assets [Line Items] | ||
Payable Under Repurchase Agreements | $ 300 | |
Debt Securities | ||
Offsetting Assets [Line Items] | ||
Percentage of Estimated Fair Value of Securities Loaned at Inception Based on Collateral Obtained | 95.00% | |
Percentage of Estimated Fair Value of Borrowed Securities at Inception Based on Pledged Cash Collateral | 98.00% | |
Securities Loaned, Not Subject to Master Netting Arrangement | $ 320 | $ 0 |
Securities Borrowed, Not Subject to Master Netting Arrangement | 308 | $ 0 |
Maximum | ||
Offsetting Assets [Line Items] | ||
Net Amount Assets (Liabilities) From Repurchase, Reverse Repurchase Agreements | $ 1 |
Investments (Consolidated Var62
Investments (Consolidated Variable Interest Entities - Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Variable Interest Entity [Line Items] | |||||
Financial or other support to investees designated as VIEs | $ 0 | $ 0 | |||
Consolidated Securitization Entities | |||||
Variable Interest Entity [Line Items] | |||||
Variable interest, maximum exposure to loss in consolidated securitization entities | $ 106 | 106 | $ 105 | ||
Interest expense on long-term debt held by consolidated securitization entities | $ 2 | $ 1 | $ 3 | $ 2 | |
Minimum | Consolidated Securitization Entities | |||||
Variable Interest Entity [Line Items] | |||||
Long-term debt held by consolidated securitization entities, percentage range | 2.25% | 2.25% | 2.25% | ||
Maximum | Consolidated Securitization Entities | |||||
Variable Interest Entity [Line Items] | |||||
Long-term debt held by consolidated securitization entities, percentage range | 5.57% | 5.57% | 5.57% |
Investments (Unconsolidated V63
Investments (Unconsolidated Variable Interest Entities - Narrative) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Variable Interest Entity [Line Items] | ||
Carrying Amount Asset | $ 19,602 | $ 15,373 |
Maximum | ||
Variable Interest Entity [Line Items] | ||
Tax Credits Guaranteed By Third Parties Amount That Reduces Maximum Exposure To Loss Related To Other Invested Assets | 1 | 1 |
Real estate joint ventures | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount Asset | 256 | $ 35 |
Real estate joint ventures | Affiliated Entity | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount Asset | 204 | |
Variable interest, maximum exposure to loss in consolidated securitization entities | $ 204 |
Investments (Net Investment Gai
Investments (Net Investment Gains Losses - Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Gains (losses) from foreign currency transactions | $ 2 | $ (4) | $ 5 | $ (3) |
Investments (Related Party In65
Investments (Related Party Invesment Transactions - Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Apr. 01, 2016 | |
Related Party Transaction [Line Items] | |||||
Related party investment administrative services | $ 20 | $ 17 | $ 41 | $ 34 | |
Contract Termination | Recapture MLIC [Member] | Affiliated Entity | |||||
Related Party Transaction [Line Items] | |||||
Cash, Cash Equivalents, and Short-term Investments | $ 4,300 |
Derivatives (Primary Risks) (De
Derivatives (Primary Risks) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | $ 132,675 | $ 133,176 |
Estimated Fair Value Assets | 6,135 | 3,893 |
Estimated Fair Value Liabilities | 2,427 | 1,782 |
Derivatives Designated as Hedging Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 1,693 | 1,622 |
Estimated Fair Value Assets | 304 | 232 |
Estimated Fair Value Liabilities | 6 | 4 |
Derivatives Designated as Hedging Instruments | Fair Value Hedges | Interest rate swaps | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 349 | 420 |
Estimated Fair Value Assets | 63 | 38 |
Estimated Fair Value Liabilities | 3 | 1 |
Derivatives Designated as Hedging Instruments | Cash Flow Hedges | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 1,344 | 1,202 |
Estimated Fair Value Assets | 241 | 194 |
Estimated Fair Value Liabilities | 3 | 3 |
Derivatives Designated as Hedging Instruments | Cash Flow Hedges | Interest rate swaps | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 123 | 230 |
Estimated Fair Value Assets | 52 | 60 |
Estimated Fair Value Liabilities | 0 | 0 |
Derivatives Designated as Hedging Instruments | Cash Flow Hedges | Interest rate forwards | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 35 | 35 |
Estimated Fair Value Assets | 16 | 8 |
Estimated Fair Value Liabilities | 0 | 0 |
Derivatives Designated as Hedging Instruments | Cash Flow Hedges | Foreign currency swaps | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 1,186 | 937 |
Estimated Fair Value Assets | 173 | 126 |
Estimated Fair Value Liabilities | 3 | 3 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 130,982 | 131,554 |
Estimated Fair Value Assets | 5,831 | 3,661 |
Estimated Fair Value Liabilities | 2,421 | 1,778 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Interest rate swaps | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 22,648 | 23,134 |
Estimated Fair Value Assets | 3,111 | 1,804 |
Estimated Fair Value Liabilities | 1,019 | 638 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Interest rate floors | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 2,100 | 7,036 |
Estimated Fair Value Assets | 20 | 33 |
Estimated Fair Value Liabilities | 14 | 24 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Interest rate caps | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 14,192 | 13,792 |
Estimated Fair Value Assets | 8 | 38 |
Estimated Fair Value Liabilities | 0 | 0 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Interest rate futures | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 2,357 | 630 |
Estimated Fair Value Assets | 0 | 2 |
Estimated Fair Value Liabilities | 3 | 0 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Interest rate options | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 16,720 | 18,620 |
Estimated Fair Value Assets | 1,051 | 472 |
Estimated Fair Value Liabilities | 0 | 5 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Total Return Swap [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 1,262 | 0 |
Estimated Fair Value Assets | 66 | 0 |
Estimated Fair Value Liabilities | 0 | 0 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Foreign currency swaps | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 1,107 | 659 |
Estimated Fair Value Assets | 118 | 75 |
Estimated Fair Value Liabilities | 12 | 0 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Foreign currency forwards | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 141 | 185 |
Estimated Fair Value Assets | 3 | 4 |
Estimated Fair Value Liabilities | 0 | 1 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Credit default swaps — purchased | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 44 | 21 |
Estimated Fair Value Assets | 0 | 0 |
Estimated Fair Value Liabilities | 1 | 0 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Credit default swaps — written | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 1,957 | 2,093 |
Estimated Fair Value Assets | 17 | 13 |
Estimated Fair Value Liabilities | 1 | 1 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Equity futures | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 8,512 | 3,669 |
Estimated Fair Value Assets | 1 | 37 |
Estimated Fair Value Liabilities | 96 | 0 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Equity index options | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 42,061 | 44,035 |
Estimated Fair Value Assets | 1,266 | 1,032 |
Estimated Fair Value Liabilities | 783 | 626 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Equity variance swaps | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 14,935 | 14,866 |
Estimated Fair Value Assets | 128 | 120 |
Estimated Fair Value Liabilities | 463 | 434 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Equity total return swaps | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 2,946 | 2,814 |
Estimated Fair Value Assets | 42 | 31 |
Estimated Fair Value Liabilities | $ 29 | $ 49 |
Derivatives (Net Derivative Gai
Derivatives (Net Derivative Gains Losses) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Components of Net Derivatives Gains (Losses) | ||||
Derivatives and hedging gains (losses) | $ 512 | $ (787) | $ 1,287 | $ (466) |
Embedded derivatives gains (losses) | (3,742) | 770 | (4,522) | 534 |
Total net derivative gains (losses) | $ (3,230) | $ (17) | $ (3,235) | $ 68 |
Derivatives (Earned Income On D
Derivatives (Earned Income On Derivatives) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total earned income | $ 106 | $ 91 | $ 210 | $ 188 |
Derivatives Designated as Hedging Instruments | Net investment income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total earned income | 4 | 2 | 7 | 5 |
Derivatives Designated as Hedging Instruments | Interest Credited To Policyholder Account Balance [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total earned income | 0 | (1) | 0 | (1) |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Net derivative gains (losses) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total earned income | 99 | 86 | 196 | 177 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Policyholder benefits and claims | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total earned income | $ 3 | $ 4 | $ 7 | $ 7 |
Derivatives (Gains Losses Recog
Derivatives (Gains Losses Recognized in Income Not Designated or Qualifying) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net Derivative Gains (Losses) Recognized for Derivatives | $ 9 | $ (15) | $ 21 | $ (7) |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Net derivative gains (losses) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net Derivative Gains (Losses) Recognized for Derivatives | 412 | (879) | 1,093 | (651) |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Net derivative gains (losses) | Interest rate derivatives | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net Derivative Gains (Losses) Recognized for Derivatives | 599 | (682) | 1,416 | (281) |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Net derivative gains (losses) | Foreign currency exchange rate derivatives | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net Derivative Gains (Losses) Recognized for Derivatives | 29 | (34) | 29 | 1 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Net derivative gains (losses) | Credit default swaps — written | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net Derivative Gains (Losses) Recognized for Derivatives | (1) | (6) | (1) | (5) |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Net derivative gains (losses) | Equity derivatives | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net Derivative Gains (Losses) Recognized for Derivatives | (215) | (157) | (351) | (366) |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Net Investment Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net Derivative Gains (Losses) Recognized for Derivatives | (1) | 0 | (4) | (1) |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Net Investment Income | Interest rate derivatives | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net Derivative Gains (Losses) Recognized for Derivatives | 0 | 0 | 0 | 0 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Net Investment Income | Foreign currency exchange rate derivatives | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net Derivative Gains (Losses) Recognized for Derivatives | 0 | 0 | 0 | 0 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Net Investment Income | Credit default swaps — written | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net Derivative Gains (Losses) Recognized for Derivatives | 0 | 0 | 0 | 0 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Net Investment Income | Equity derivatives | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net Derivative Gains (Losses) Recognized for Derivatives | (1) | 0 | (4) | (1) |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Policyholder benefits and claims | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net Derivative Gains (Losses) Recognized for Derivatives | (37) | (40) | 12 | (102) |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Policyholder benefits and claims | Interest rate derivatives | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net Derivative Gains (Losses) Recognized for Derivatives | 10 | (17) | 29 | (6) |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Policyholder benefits and claims | Foreign currency exchange rate derivatives | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net Derivative Gains (Losses) Recognized for Derivatives | 0 | 0 | 0 | 0 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Policyholder benefits and claims | Credit default swaps — written | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net Derivative Gains (Losses) Recognized for Derivatives | 0 | 0 | 0 | 0 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Policyholder benefits and claims | Equity derivatives | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net Derivative Gains (Losses) Recognized for Derivatives | $ (47) | $ (23) | $ (17) | $ (96) |
Derivatives (Fair Value Hedges)
Derivatives (Fair Value Hedges) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net Derivative Gains (Losses) Recognized for Derivatives | $ 9 | $ (15) | $ 21 | $ (7) |
Net Derivative Gains (Losses) Recognized for Hedged Items | 10 | (16) | 22 | (8) |
Ineffectiveness Recognized in Net Derivative Gains (Losses) | (1) | 1 | (1) | 1 |
Interest rate swaps | Fixed maturity securities | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net Derivative Gains (Losses) Recognized for Derivatives | (1) | 1 | (3) | 0 |
Net Derivative Gains (Losses) Recognized for Hedged Items | 0 | 0 | (2) | (1) |
Ineffectiveness Recognized in Net Derivative Gains (Losses) | (1) | 1 | (1) | 1 |
Interest rate swaps | Policyholder account balances | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net Derivative Gains (Losses) Recognized for Derivatives | 10 | (16) | 24 | (7) |
Net Derivative Gains (Losses) Recognized for Hedged Items | 10 | (16) | 24 | (7) |
Ineffectiveness Recognized in Net Derivative Gains (Losses) | $ 0 | $ 0 | $ 0 | $ 0 |
Derivatives (Cash Flow Hedges)
Derivatives (Cash Flow Hedges) (Details) - Cash Flow Hedges - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Derivatives in cash flow hedging relationships | ||||
Amount of Gains (Losses) Deferred in AOCI on Derivatives | $ 70 | $ (83) | $ 87 | $ 9 |
Interest rate swaps | ||||
Derivatives in cash flow hedging relationships | ||||
Amount of Gains (Losses) Deferred in AOCI on Derivatives | 10 | (41) | 36 | (12) |
Interest rate forwards | ||||
Derivatives in cash flow hedging relationships | ||||
Amount of Gains (Losses) Deferred in AOCI on Derivatives | 3 | (11) | 7 | 0 |
Foreign currency swaps | ||||
Derivatives in cash flow hedging relationships | ||||
Amount of Gains (Losses) Deferred in AOCI on Derivatives | 57 | (31) | 44 | 21 |
Credit forwards | ||||
Derivatives in cash flow hedging relationships | ||||
Amount of Gains (Losses) Deferred in AOCI on Derivatives | 0 | 0 | 0 | 0 |
Net derivative gains (losses) | ||||
Derivatives in cash flow hedging relationships | ||||
Amount and Location of Gains (Losses) Reclassified from AOCI into Income (Loss) | 10 | 2 | 14 | (1) |
Amount and Location of Gains (Losses) Recognized in Income (Loss) on Derivatives | 0 | 1 | 0 | 1 |
Net derivative gains (losses) | Interest rate swaps | ||||
Derivatives in cash flow hedging relationships | ||||
Amount and Location of Gains (Losses) Reclassified from AOCI into Income (Loss) | 12 | 0 | 12 | 1 |
Amount and Location of Gains (Losses) Recognized in Income (Loss) on Derivatives | 0 | 1 | 0 | 1 |
Net derivative gains (losses) | Interest rate forwards | ||||
Derivatives in cash flow hedging relationships | ||||
Amount and Location of Gains (Losses) Reclassified from AOCI into Income (Loss) | (1) | 0 | 1 | 1 |
Amount and Location of Gains (Losses) Recognized in Income (Loss) on Derivatives | 0 | 0 | 0 | 0 |
Net derivative gains (losses) | Foreign currency swaps | ||||
Derivatives in cash flow hedging relationships | ||||
Amount and Location of Gains (Losses) Reclassified from AOCI into Income (Loss) | (1) | 2 | 1 | (2) |
Amount and Location of Gains (Losses) Recognized in Income (Loss) on Derivatives | 0 | 0 | 0 | 0 |
Net derivative gains (losses) | Credit forwards | ||||
Derivatives in cash flow hedging relationships | ||||
Amount and Location of Gains (Losses) Reclassified from AOCI into Income (Loss) | 0 | 0 | 0 | (1) |
Amount and Location of Gains (Losses) Recognized in Income (Loss) on Derivatives | 0 | 0 | 0 | 0 |
Net Investment Income | ||||
Derivatives in cash flow hedging relationships | ||||
Amount and Location of Gains (Losses) Reclassified from AOCI into Income (Loss) | 1 | 1 | 3 | 2 |
Net Investment Income | Interest rate swaps | ||||
Derivatives in cash flow hedging relationships | ||||
Amount and Location of Gains (Losses) Reclassified from AOCI into Income (Loss) | 0 | 1 | 1 | 1 |
Net Investment Income | Interest rate forwards | ||||
Derivatives in cash flow hedging relationships | ||||
Amount and Location of Gains (Losses) Reclassified from AOCI into Income (Loss) | 1 | 0 | 2 | 1 |
Net Investment Income | Foreign currency swaps | ||||
Derivatives in cash flow hedging relationships | ||||
Amount and Location of Gains (Losses) Reclassified from AOCI into Income (Loss) | 0 | 0 | 0 | 0 |
Net Investment Income | Credit forwards | ||||
Derivatives in cash flow hedging relationships | ||||
Amount and Location of Gains (Losses) Reclassified from AOCI into Income (Loss) | $ 0 | $ 0 | $ 0 | $ 0 |
Derivatives (Credit Derivatives
Derivatives (Credit Derivatives) (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Credit Default Swaps | $ 16 | $ 12 |
Maximum Amount of Future Payments under Credit Default Swaps | $ 1,957 | $ 2,093 |
Weighted Average Years to Maturity | 4 years 2 months | 3 years 9 months |
Aaa/Aa/A | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Credit Default Swaps | $ 3 | $ 2 |
Maximum Amount of Future Payments under Credit Default Swaps | $ 420 | $ 426 |
Weighted Average Years to Maturity | 3 years 5 months | 2 years 9 months |
Aaa/Aa/A | Single name credit default swaps (corporate) | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Credit Default Swaps | $ 0 | $ 1 |
Maximum Amount of Future Payments under Credit Default Swaps | $ 102 | $ 207 |
Weighted Average Years to Maturity | 1 year 10 months | 1 year 6 months |
Aaa/Aa/A | Credit default swaps referencing indices | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Credit Default Swaps | $ 3 | $ 1 |
Maximum Amount of Future Payments under Credit Default Swaps | $ 318 | $ 219 |
Weighted Average Years to Maturity | 3 years 10 months | 4 years |
Baa | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Credit Default Swaps | $ 13 | $ 10 |
Maximum Amount of Future Payments under Credit Default Swaps | $ 1,537 | $ 1,631 |
Weighted Average Years to Maturity | 4 years 5 months | 4 years |
Baa | Single name credit default swaps (corporate) | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Credit Default Swaps | $ 1 | $ 2 |
Maximum Amount of Future Payments under Credit Default Swaps | $ 274 | $ 409 |
Weighted Average Years to Maturity | 1 year 8 months | 1 year 7 months |
Baa | Credit default swaps referencing indices | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Credit Default Swaps | $ 12 | $ 8 |
Maximum Amount of Future Payments under Credit Default Swaps | $ 1,263 | $ 1,222 |
Weighted Average Years to Maturity | 5 years | 4 years 9 months |
B | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Credit Default Swaps | $ 0 | $ 0 |
Maximum Amount of Future Payments under Credit Default Swaps | $ 0 | $ 36 |
Weighted Average Years to Maturity | 0 years | 5 years |
B | Single name credit default swaps (corporate) | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Credit Default Swaps | $ 0 | $ 0 |
Maximum Amount of Future Payments under Credit Default Swaps | $ 0 | $ 0 |
Weighted Average Years to Maturity | 0 years | 0 years |
B | Credit default swaps referencing indices | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Credit Default Swaps | $ 0 | $ 0 |
Maximum Amount of Future Payments under Credit Default Swaps | $ 0 | $ 36 |
Weighted Average Years to Maturity | 0 years | 5 years |
Derivatives (Estimated Fair Val
Derivatives (Estimated Fair Value of Derivative Assets and Liabilities after Master Netting Agreements and Cash Collateral) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Offsetting Assets [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset Excluding Accruals | $ 6,226 | $ 3,987 |
Derivative Liability, Fair Value, Gross Liability Excluding Accruals | 2,435 | 1,803 |
Amounts offset in the consoilidated balance sheets, Assets | 0 | 0 |
Amounts offset in the consoilidated balance sheets, Liabilities | 0 | 0 |
Estimated fair value of derivative assets presented in the consolidated balance sheets | 6,226 | 3,987 |
Estimated fair value of derivative liabilities presented in the consolidated balance sheets | 2,435 | 1,803 |
Net amount of derivative assets after application of master netting agreements and cash collateral | 41 | 175 |
Net amount of derivative liabilities after application of master netting agreements and cash collateral | 56 | 0 |
Over the Counter [Member] | ||
Offsetting Assets [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset Excluding Accruals | 5,773 | 3,870 |
Derivative Liability, Fair Value, Gross Liability Excluding Accruals | 2,209 | 1,725 |
Gross estimated fair value of derivative assets | (2,062) | (1,577) |
Gross estimated fair value of derivative liabilities | (2,062) | (1,577) |
Cash collateral on derivative assets | (3,047) | (1,605) |
Cash collateral on derivative liabilities | 0 | 0 |
Securities collateral on derivative assets | (627) | (552) |
Securities collateral on derivative liabilities | (91) | (148) |
OTC-cleared | ||
Offsetting Assets [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset Excluding Accruals | 452 | 78 |
Derivative Liability, Fair Value, Gross Liability Excluding Accruals | 127 | 78 |
Gross estimated fair value of derivative assets | (127) | (70) |
Gross estimated fair value of derivative liabilities | (127) | (70) |
Cash collateral on derivative assets | (321) | (8) |
Cash collateral on derivative liabilities | 0 | (8) |
Securities collateral on derivative assets | 0 | 0 |
Securities collateral on derivative liabilities | 0 | 0 |
Exchange-traded | ||
Offsetting Assets [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset Excluding Accruals | 1 | 39 |
Derivative Liability, Fair Value, Gross Liability Excluding Accruals | 99 | 0 |
Gross estimated fair value of derivative assets | (1) | 0 |
Gross estimated fair value of derivative liabilities | (1) | 0 |
Cash collateral on derivative assets | 0 | 0 |
Cash collateral on derivative liabilities | (18) | 0 |
Securities collateral on derivative assets | 0 | 0 |
Securities collateral on derivative liabilities | $ (80) | $ 0 |
Derivatives (Credit Risk on Fre
Derivatives (Credit Risk on Freestanding Derivatives) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Derivatives in Net Liability Position | $ 147 | $ 148 |
Fair Value Of Incremental Collateral Provided Upon A One Notch Downgrade In The Company's Credit Rating | 0 | 0 |
Fair Value Of Incremental Collateral Provided Upon A Downgrade In The Company's Credit Rating to a Level that Triggers Full Overnight Collateralization or Termination of the Derivative Position | 0 | 0 |
Fixed Maturity Securities | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Collateral Provided | 99 | 179 |
Cash [Member] | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Collateral Provided | $ 0 | $ 0 |
Derivatives (Embedded Derivativ
Derivatives (Embedded Derivatives) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Embedded Derivative, Fair Value of Embedded Derivative, Net [Abstract] | ||
Net embedded derivatives within asset host contracts | $ 336 | $ 214 |
Net embedded derivatives within liability host contracts | 6,115 | 1,324 |
Ceded guaranteed minimum benefits | Premiums, reinsurance and other receivables | ||
Embedded Derivative, Fair Value of Embedded Derivative, Net [Abstract] | ||
Net embedded derivatives within asset host contracts | 350 | 242 |
Funds withheld on assumed reinsurance | Other invested assets | ||
Embedded Derivative, Fair Value of Embedded Derivative, Net [Abstract] | ||
Net embedded derivatives within asset host contracts | 63 | 35 |
Direct guaranteed minimum benefits | Policyholder account balances | ||
Embedded Derivative, Fair Value of Embedded Derivative, Net [Abstract] | ||
Net embedded derivatives within liability host contracts | 4,205 | 177 |
Assumed guaranteed minimum benefits | Policyholder account balances | ||
Embedded Derivative, Fair Value of Embedded Derivative, Net [Abstract] | ||
Net embedded derivatives within liability host contracts | 1,297 | 897 |
Funds withheld on ceded reinsurance | Other liabilities | ||
Embedded Derivative, Fair Value of Embedded Derivative, Net [Abstract] | ||
Net embedded derivatives within liability host contracts | 603 | 244 |
Other | Policyholder account balances | ||
Embedded Derivative, Fair Value of Embedded Derivative, Net [Abstract] | ||
Net embedded derivatives within liability host contracts | 10 | 6 |
Options embedded in debt or equity securities | Investments | ||
Embedded Derivative, Fair Value of Embedded Derivative, Net [Abstract] | ||
Net embedded derivatives within asset host contracts | $ (77) | $ (63) |
Derivatives (Changes in Estimat
Derivatives (Changes in Estimated Fair Value Related to Embedded Derivatives) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net derivatives gains (losses) | $ (3,742) | $ 770 | $ (4,522) | $ 534 |
Net derivative gains (losses) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net derivatives gains (losses) | (3,742) | 770 | (4,522) | 534 |
Policyholder benefits and claims | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net derivatives gains (losses) | $ 60 | $ (43) | $ 105 | $ (19) |
Derivatives (Narrative) (Detail
Derivatives (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Derivatives, Fair Value [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset | $ 6,135 | $ 6,135 | $ 3,893 | ||
Derivative Liability, Fair Value, Gross Liability | 2,427 | 2,427 | 1,782 | ||
Maximum Amount of Future Payments under Credit Default Swaps | 1,957 | 1,957 | 2,093 | ||
Estimated Fair Value of Credit Default Swaps | 16 | 16 | 12 | ||
Cash collateral on derivative assets | 167 | 167 | $ 1 | ||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain (Loss) on Discontinuation of Cash Flow Hedge Due to Forecasted Transaction Probable of Not Occurring, Net | 0 | $ 0 | 0 | $ 0 | |
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | 33 | ||||
Embedded derivatives gains (losses) | (3,742) | 770 | $ (4,522) | 534 | |
Derivative Instrument Detail [Abstract] | |||||
Hedging exposure to variability in future cash flows for specific length of time | 3 years | 4 years | |||
Accumulated Other Comprehensive Income (Loss) | 438 | $ 438 | $ 368 | ||
Cash collateral on derivative liabilities | 46 | 46 | 62 | ||
Securities collateral received which the company is permitted to sell or repledge, amount that has been sold or repledged | 0 | 0 | |||
Over the Counter [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Cash collateral on derivative assets | (3,047) | (3,047) | (1,605) | ||
Excess securities collateral received on derivatives | 216 | 216 | 0 | ||
Excess securities collateral provided on derivatives | 8 | 8 | 36 | ||
Exchange Cleared [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Cash collateral on derivative assets | (321) | (321) | (8) | ||
Excess securities collateral provided on derivatives | 99 | 99 | 34 | ||
Exchange Traded [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Cash collateral on derivative assets | 0 | 0 | 0 | ||
Excess securities collateral provided on derivatives | 285 | 285 | 156 | ||
Direct And Assumed Guaranteed Minimum Benefit [Member] | Nonperformance Risk [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Embedded derivatives gains (losses) | 513 | $ (30) | 657 | $ (14) | |
Accrued Liabilities [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset | 91 | 91 | 94 | ||
Derivative Liability, Fair Value, Gross Liability | $ 8 | $ 8 | $ 21 |
Fair Value (Recurring Fair Valu
Fair Value (Recurring Fair Value Measurements) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | $ 64,043 | $ 52,409 |
Available-for-sale Securities, Equity Securities | 390 | 409 |
Short-term investments | 2,648 | 1,737 |
Mortgage loans, at estimated fair value, relating to variable interest entities | 8,179 | 7,262 |
Derivative assets | 6,135 | 3,893 |
Net embedded derivatives within asset host contracts | 336 | 214 |
Separate account assets | 101,020 | 101,735 |
Liabilities [Abstract] | ||
Derivative liabilities | 2,427 | 1,782 |
Net embedded derivatives within liability host contracts | 6,115 | 1,324 |
Long-term debt, at estimated fair value, relating to variable interest entities | 817 | 836 |
Consolidated Securitization Entities | ||
Assets [Abstract] | ||
Mortgage loans, at estimated fair value, relating to variable interest entities | 159 | 172 |
Liabilities [Abstract] | ||
Long-term debt, at estimated fair value, relating to variable interest entities | 35 | 48 |
Recurring | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 64,043 | 52,409 |
Available-for-sale Securities, Equity Securities | 390 | 409 |
Short-term investments | 2,533 | 1,729 |
Derivative assets | 6,135 | 3,893 |
Net embedded derivatives within asset host contracts | 413 | 277 |
Separate account assets | 101,020 | 101,735 |
Total assets | 174,693 | 160,624 |
Liabilities [Abstract] | ||
Derivative liabilities | 2,427 | 1,782 |
Net embedded derivatives within liability host contracts | 6,115 | 1,324 |
Total liabilities | 8,577 | 3,154 |
Recurring | Consolidated Securitization Entities | ||
Assets [Abstract] | ||
Mortgage loans, at estimated fair value, relating to variable interest entities | 159 | 172 |
Liabilities [Abstract] | ||
Long-term debt, at estimated fair value, relating to variable interest entities | 35 | 48 |
Recurring | Interest rate contracts | ||
Assets [Abstract] | ||
Derivative assets | 4,387 | 2,455 |
Liabilities [Abstract] | ||
Derivative liabilities | 1,039 | 668 |
Recurring | Foreign currency exchange rate contracts | ||
Assets [Abstract] | ||
Derivative assets | 294 | 205 |
Liabilities [Abstract] | ||
Derivative liabilities | 15 | 4 |
Recurring | Credit contracts | ||
Assets [Abstract] | ||
Derivative assets | 17 | 13 |
Liabilities [Abstract] | ||
Derivative liabilities | 2 | 1 |
Recurring | Equity market contracts | ||
Assets [Abstract] | ||
Derivative assets | 1,437 | 1,220 |
Liabilities [Abstract] | ||
Derivative liabilities | 1,371 | 1,109 |
Recurring | U.S. corporate | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 19,017 | 16,746 |
Recurring | U.S. government and agency | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 17,765 | 13,806 |
Recurring | RMBS | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 10,584 | 8,478 |
Recurring | Foreign corporate | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 5,856 | 4,954 |
Recurring | State and political subdivision | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 3,191 | 2,705 |
Recurring | ABS | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 3,171 | 2,674 |
Recurring | CMBS | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 3,477 | 2,301 |
Recurring | Foreign government | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 982 | 745 |
Recurring | Level 1 | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 11,672 | 7,998 |
Available-for-sale Securities, Equity Securities | 42 | 44 |
Short-term investments | 112 | 59 |
Derivative assets | 1 | 39 |
Net embedded derivatives within asset host contracts | 0 | 0 |
Separate account assets | 546 | 624 |
Total assets | 12,373 | 8,764 |
Liabilities [Abstract] | ||
Derivative liabilities | 99 | 0 |
Net embedded derivatives within liability host contracts | 0 | 0 |
Total liabilities | 99 | 0 |
Recurring | Level 1 | Consolidated Securitization Entities | ||
Assets [Abstract] | ||
Mortgage loans, at estimated fair value, relating to variable interest entities | 0 | 0 |
Liabilities [Abstract] | ||
Long-term debt, at estimated fair value, relating to variable interest entities | 0 | 0 |
Recurring | Level 1 | Interest rate contracts | ||
Assets [Abstract] | ||
Derivative assets | 0 | 2 |
Liabilities [Abstract] | ||
Derivative liabilities | 3 | 0 |
Recurring | Level 1 | Foreign currency exchange rate contracts | ||
Assets [Abstract] | ||
Derivative assets | 0 | 0 |
Liabilities [Abstract] | ||
Derivative liabilities | 0 | 0 |
Recurring | Level 1 | Credit contracts | ||
Assets [Abstract] | ||
Derivative assets | 0 | 0 |
Liabilities [Abstract] | ||
Derivative liabilities | 0 | 0 |
Recurring | Level 1 | Equity market contracts | ||
Assets [Abstract] | ||
Derivative assets | 1 | 37 |
Liabilities [Abstract] | ||
Derivative liabilities | 96 | 0 |
Recurring | Level 1 | U.S. corporate | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 0 | 0 |
Recurring | Level 1 | U.S. government and agency | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 10,109 | 7,998 |
Recurring | Level 1 | RMBS | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 1,563 | 0 |
Recurring | Level 1 | Foreign corporate | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 0 | 0 |
Recurring | Level 1 | State and political subdivision | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 0 | 0 |
Recurring | Level 1 | ABS | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 0 | 0 |
Recurring | Level 1 | CMBS | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 0 | 0 |
Recurring | Level 1 | Foreign government | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 0 | 0 |
Recurring | Level 2 | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 48,029 | 40,392 |
Available-for-sale Securities, Equity Securities | 175 | 268 |
Short-term investments | 2,310 | 1,623 |
Derivative assets | 5,835 | 3,630 |
Net embedded derivatives within asset host contracts | 0 | 0 |
Separate account assets | 100,332 | 100,965 |
Total assets | 156,840 | 147,050 |
Liabilities [Abstract] | ||
Derivative liabilities | 1,847 | 1,326 |
Net embedded derivatives within liability host contracts | 0 | 0 |
Total liabilities | 1,882 | 1,374 |
Recurring | Level 2 | Consolidated Securitization Entities | ||
Assets [Abstract] | ||
Mortgage loans, at estimated fair value, relating to variable interest entities | 159 | 172 |
Liabilities [Abstract] | ||
Long-term debt, at estimated fair value, relating to variable interest entities | 35 | 48 |
Recurring | Level 2 | Interest rate contracts | ||
Assets [Abstract] | ||
Derivative assets | 4,306 | 2,445 |
Liabilities [Abstract] | ||
Derivative liabilities | 1,036 | 668 |
Recurring | Level 2 | Foreign currency exchange rate contracts | ||
Assets [Abstract] | ||
Derivative assets | 294 | 205 |
Liabilities [Abstract] | ||
Derivative liabilities | 15 | 4 |
Recurring | Level 2 | Credit contracts | ||
Assets [Abstract] | ||
Derivative assets | 13 | 12 |
Liabilities [Abstract] | ||
Derivative liabilities | 2 | 1 |
Recurring | Level 2 | Equity market contracts | ||
Assets [Abstract] | ||
Derivative assets | 1,222 | 968 |
Liabilities [Abstract] | ||
Derivative liabilities | 794 | 653 |
Recurring | Level 2 | U.S. corporate | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 17,383 | 15,295 |
Recurring | Level 2 | U.S. government and agency | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 7,631 | 5,808 |
Recurring | Level 2 | RMBS | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 7,566 | 7,138 |
Recurring | Level 2 | Foreign corporate | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 4,982 | 4,263 |
Recurring | Level 2 | State and political subdivision | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 3,183 | 2,692 |
Recurring | Level 2 | ABS | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 3,008 | 2,357 |
Recurring | Level 2 | CMBS | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 3,303 | 2,120 |
Recurring | Level 2 | Foreign government | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 973 | 719 |
Recurring | Level 3 | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 4,342 | 4,019 |
Available-for-sale Securities, Equity Securities | 173 | 97 |
Short-term investments | 111 | 47 |
Derivative assets | 299 | 224 |
Net embedded derivatives within asset host contracts | 413 | 277 |
Separate account assets | 142 | 146 |
Total assets | 5,480 | 4,810 |
Liabilities [Abstract] | ||
Derivative liabilities | 481 | 456 |
Net embedded derivatives within liability host contracts | 6,115 | 1,324 |
Total liabilities | 6,596 | 1,780 |
Recurring | Level 3 | Consolidated Securitization Entities | ||
Assets [Abstract] | ||
Mortgage loans, at estimated fair value, relating to variable interest entities | 0 | 0 |
Liabilities [Abstract] | ||
Long-term debt, at estimated fair value, relating to variable interest entities | 0 | 0 |
Recurring | Level 3 | Interest rate contracts | ||
Assets [Abstract] | ||
Derivative assets | 81 | 8 |
Liabilities [Abstract] | ||
Derivative liabilities | 0 | 0 |
Recurring | Level 3 | Foreign currency exchange rate contracts | ||
Assets [Abstract] | ||
Derivative assets | 0 | 0 |
Liabilities [Abstract] | ||
Derivative liabilities | 0 | 0 |
Recurring | Level 3 | Credit contracts | ||
Assets [Abstract] | ||
Derivative assets | 4 | 1 |
Liabilities [Abstract] | ||
Derivative liabilities | 0 | 0 |
Recurring | Level 3 | Equity market contracts | ||
Assets [Abstract] | ||
Derivative assets | 214 | 215 |
Liabilities [Abstract] | ||
Derivative liabilities | 481 | 456 |
Recurring | Level 3 | U.S. corporate | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 1,634 | 1,451 |
Recurring | Level 3 | U.S. government and agency | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 25 | 0 |
Recurring | Level 3 | RMBS | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 1,455 | 1,340 |
Recurring | Level 3 | Foreign corporate | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 874 | 691 |
Recurring | Level 3 | State and political subdivision | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 8 | 13 |
Recurring | Level 3 | ABS | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 163 | 317 |
Recurring | Level 3 | CMBS | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 174 | 181 |
Recurring | Level 3 | Foreign government | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | $ 9 | $ 26 |
Fair Value (Quantitative Inform
Fair Value (Quantitative Information) (Details) - $ / shares | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Interest rate contracts | Minimum | Income Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Swap yield | 2.31% | 3.17% |
Repurchase Rate | (0.16%) | |
Interest rate contracts | Maximum | Income Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Swap yield | 2.31% | 3.17% |
Repurchase Rate | (0.03%) | |
Credit contracts | Minimum | Income Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Credit spreads | 0.97% | 0.00% |
Credit contracts | Maximum | Income Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Credit spreads | 1.00% | 0.00% |
Equity market contracts | Minimum | Income Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Volatility | 16.00% | 17.00% |
Correlation | 70.00% | 70.00% |
Equity market contracts | Maximum | Income Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Volatility | 35.00% | 36.00% |
Correlation | 70.00% | 70.00% |
Embedded derivatives direct, assumed, and ceded guaranteed minimum benefits | Minimum | Income Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Utilization rates | 0.00% | 0.00% |
Withdrawal rates | 0.25% | 0.25% |
Long-term equity volatilities | 17.40% | 17.40% |
Nonperformance risk spread | 0.07% | 0.04% |
Embedded derivatives direct, assumed, and ceded guaranteed minimum benefits | Minimum | Income Approach Valuation Technique | Durations 1 - 10 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Lapse Rate | 0.25% | 0.25% |
Embedded derivatives direct, assumed, and ceded guaranteed minimum benefits | Minimum | Income Approach Valuation Technique | Durations 11 - 20 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Lapse Rate | 3.00% | 3.00% |
Embedded derivatives direct, assumed, and ceded guaranteed minimum benefits | Minimum | Income Approach Valuation Technique | Durations 21 - 116 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Lapse Rate | 3.00% | 3.00% |
Embedded derivatives direct, assumed, and ceded guaranteed minimum benefits | Minimum | Income Approach Valuation Technique | Ages 0 - 40 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Mortality Rate | 0.00% | 0.00% |
Embedded derivatives direct, assumed, and ceded guaranteed minimum benefits | Minimum | Income Approach Valuation Technique | Ages 41 - 60 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Mortality Rate | 0.04% | 0.04% |
Embedded derivatives direct, assumed, and ceded guaranteed minimum benefits | Minimum | Income Approach Valuation Technique | Ages 61 - 115 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Mortality Rate | 0.26% | 0.26% |
Embedded derivatives direct, assumed, and ceded guaranteed minimum benefits | Maximum | Income Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Utilization rates | 25.00% | 25.00% |
Withdrawal rates | 10.00% | 10.00% |
Long-term equity volatilities | 25.00% | 25.00% |
Nonperformance risk spread | 0.72% | 0.52% |
Embedded derivatives direct, assumed, and ceded guaranteed minimum benefits | Maximum | Income Approach Valuation Technique | Durations 1 - 10 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Lapse Rate | 100.00% | 100.00% |
Embedded derivatives direct, assumed, and ceded guaranteed minimum benefits | Maximum | Income Approach Valuation Technique | Durations 11 - 20 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Lapse Rate | 100.00% | 100.00% |
Embedded derivatives direct, assumed, and ceded guaranteed minimum benefits | Maximum | Income Approach Valuation Technique | Durations 21 - 116 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Lapse Rate | 100.00% | 100.00% |
Embedded derivatives direct, assumed, and ceded guaranteed minimum benefits | Maximum | Income Approach Valuation Technique | Ages 0 - 40 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Mortality Rate | 0.09% | 0.09% |
Embedded derivatives direct, assumed, and ceded guaranteed minimum benefits | Maximum | Income Approach Valuation Technique | Ages 41 - 60 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Mortality Rate | 0.65% | 0.65% |
Embedded derivatives direct, assumed, and ceded guaranteed minimum benefits | Maximum | Income Approach Valuation Technique | Ages 61 - 115 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Mortality Rate | 100.00% | 100.00% |
U.S. corporate and foreign corporate securities | Minimum | Market Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Delta spread adjustments | (1.06%) | (0.65%) |
Offered quotes | $ 6 | $ 68 |
Quoted prices | $ 13 | $ 13 |
U.S. corporate and foreign corporate securities | Maximum | Market Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Delta spread adjustments | 5.45% | 2.40% |
Offered quotes | $ 95 | $ 95 |
Quoted prices | $ 884 | $ 780 |
U.S. corporate and foreign corporate securities | Weighted Average | Market Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Delta spread adjustments | (0.02%) | 0.49% |
Offered quotes | $ 83 | $ 80 |
Quoted prices | 321 | 314 |
RMBS | Minimum | Market Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Offered quotes | 36 | 29 |
RMBS | Maximum | Market Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Offered quotes | 112 | 292 |
RMBS | Weighted Average | Market Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Offered quotes | 90 | 93 |
ABS | Minimum | Market Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Offered quotes | 98 | 66 |
Quoted prices | 97 | 97 |
ABS | Maximum | Market Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Offered quotes | 101 | 105 |
Quoted prices | 103 | 103 |
ABS | Weighted Average | Market Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Offered quotes | 99 | 99 |
Quoted prices | $ 101 | $ 100 |
Fair Value (Unobservable Input
Fair Value (Unobservable Input Reconciliation) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Net Derivatives | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | $ 57 | $ (32) | $ 43 | $ (65) |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Balance, beginning of period | (243) | (225) | (232) | (196) |
Total realized/unrealized gains (losses) included in net income (loss) | 54 | (40) | 37 | (72) |
Total realized/unrealized gains (losses) included in AOCI | 4 | (10) | 8 | 0 |
Purchases | 4 | 4 | 7 | 4 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | (1) | (23) | (2) | (30) |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Balance, end of period | (182) | (294) | (182) | (294) |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 57 | (32) | 43 | (65) |
Net Embedded Derivatives | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | (3,668) | 695 | (4,404) | 496 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Balance, beginning of period | (1,906) | (662) | (1,047) | (347) |
Total realized/unrealized gains (losses) included in net income (loss) | (3,664) | 718 | (4,399) | 519 |
Total realized/unrealized gains (losses) included in AOCI | 0 | 0 | 0 | 0 |
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | (132) | (114) | (256) | (230) |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Balance, end of period | (5,702) | (58) | (5,702) | (58) |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | (3,668) | 695 | (4,404) | 496 |
U.S. corporate and foreign corporate securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, beginning of period | 2,135 | 2,151 | 2,142 | 2,065 |
Total realized/unrealized gains (losses) included in net income (loss) | 0 | 2 | (12) | 6 |
Total realized/unrealized gains (losses) included in AOCI | 70 | (70) | 174 | (70) |
Purchases | 229 | 49 | 274 | 97 |
Sales | (19) | (75) | (96) | (90) |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 101 | 32 | 160 | 72 |
Transfers out of Level 3 | (8) | (13) | (134) | (4) |
Balance, end of period | 2,508 | 2,076 | 2,508 | 2,076 |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 0 | 2 | (10) | 6 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 0 | 2 | (10) | 6 |
U.S. Government and Agency | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, beginning of period | 20 | 0 | 0 | 0 |
Total realized/unrealized gains (losses) included in net income (loss) | 0 | 0 | 0 | 0 |
Total realized/unrealized gains (losses) included in AOCI | 1 | 0 | 2 | 0 |
Purchases | 4 | 0 | 4 | 0 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 0 | 19 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Balance, end of period | 25 | 0 | 25 | 0 |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 0 | 0 | 0 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 0 | 0 | 0 | 0 |
Structured Securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, beginning of period | 1,635 | 1,527 | 1,838 | 1,045 |
Total realized/unrealized gains (losses) included in net income (loss) | 8 | 7 | 14 | 10 |
Total realized/unrealized gains (losses) included in AOCI | (5) | (1) | (18) | (2) |
Purchases | 376 | 523 | 447 | 948 |
Sales | (130) | (88) | (221) | (125) |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 12 | 44 | 24 | 43 |
Transfers out of Level 3 | (104) | (248) | (292) | (155) |
Balance, end of period | 1,792 | 1,764 | 1,792 | 1,764 |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 8 | 5 | 13 | 8 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 8 | 5 | 13 | 8 |
State and political subdivision | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, beginning of period | 8 | 0 | 13 | 0 |
Total realized/unrealized gains (losses) included in net income (loss) | 0 | 0 | 0 | 0 |
Total realized/unrealized gains (losses) included in AOCI | 0 | 0 | 0 | 0 |
Purchases | 0 | 8 | 0 | 8 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | (5) | 0 |
Balance, end of period | 8 | 8 | 8 | 8 |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 0 | 0 | 0 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 0 | 0 | 0 | 0 |
Foreign government | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, beginning of period | 0 | 0 | 26 | 0 |
Total realized/unrealized gains (losses) included in net income (loss) | 0 | 0 | 0 | 0 |
Total realized/unrealized gains (losses) included in AOCI | 0 | 0 | 0 | 0 |
Purchases | 9 | 0 | 9 | 0 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | (26) | 0 |
Balance, end of period | 9 | 0 | 9 | 0 |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 0 | 0 | 0 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 0 | 0 | 0 | 0 |
Equity securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, beginning of period | 171 | 90 | 97 | 100 |
Total realized/unrealized gains (losses) included in net income (loss) | 0 | 0 | 0 | 0 |
Total realized/unrealized gains (losses) included in AOCI | 3 | 2 | 0 | (2) |
Purchases | 0 | 0 | 0 | 0 |
Sales | (1) | 0 | (13) | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 18 | 129 | 19 |
Transfers out of Level 3 | 0 | 0 | (40) | (7) |
Balance, end of period | 173 | 110 | 173 | 110 |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 0 | 0 | 0 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 0 | 0 | 0 | 0 |
Short-term Investments | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, beginning of period | 50 | 307 | 47 | 71 |
Total realized/unrealized gains (losses) included in net income (loss) | 0 | 0 | 0 | 0 |
Total realized/unrealized gains (losses) included in AOCI | 0 | 0 | 0 | 0 |
Purchases | 111 | 324 | 111 | 374 |
Sales | 0 | (170) | (47) | (16) |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | (50) | (87) | 0 | (55) |
Balance, end of period | 111 | 374 | 111 | 374 |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 0 | 0 | 0 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 0 | 0 | 0 | 0 |
Separate Account Assets | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, beginning of period | 143 | 156 | 146 | 158 |
Total realized/unrealized gains (losses) included in net income (loss) | 0 | 0 | 0 | (1) |
Total realized/unrealized gains (losses) included in AOCI | 0 | 0 | 0 | 0 |
Purchases | 0 | 0 | 1 | 0 |
Sales | 0 | (2) | (4) | (4) |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | (1) | (4) | (1) | (3) |
Balance, end of period | 142 | 150 | 142 | 150 |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 0 | 0 | 0 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | $ 0 | $ 0 | $ 0 | $ 0 |
Fair Value (Fair Value Option f
Fair Value (Fair Value Option for Certain Assets and Liabilities) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Carrying value at estimated fair value | $ 8,179 | $ 7,262 |
Carrying value at estimated fair value | 817 | 836 |
Consolidated Securitization Entities | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Unpaid principal balance | 109 | 121 |
Difference between estimated fair value and unpaid principal balance | 50 | 51 |
Carrying value at estimated fair value | 159 | 172 |
Contractual principal balance | 33 | 46 |
Difference between estimated fair value and contractual principal balance | 2 | 2 |
Carrying value at estimated fair value | $ 35 | $ 48 |
Fair Value (Nonrecurring Fair V
Fair Value (Nonrecurring Fair Value Measurements) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Level 3 | Mortgage loans | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Carrying Value After Measurement | $ 3 | $ 3 | $ 3 | $ 3 |
Level 3 | Other limited partnership interests | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Carrying Value After Measurement | 2 | 0 | 2 | 0 |
Level 3 | Other assets | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Carrying Value After Measurement | 0 | 0 | 0 | 0 |
Nonrecurring | Mortgage loans | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Gains (Losses) | 0 | 0 | 0 | 0 |
Nonrecurring | Other limited partnership interests | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Gains (Losses) | (1) | 0 | (2) | (1) |
Nonrecurring | Other assets | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Gains (Losses) | $ 0 | $ 0 | $ (11) | $ 0 |
Fair Value (Financial Instrumen
Fair Value (Financial Instruments Carried at Other Than Fair Value) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Assets | ||
Policy loans | $ 1,190 | $ 1,266 |
Liabilities | ||
Separate account liabilities | 101,020 | 101,735 |
Carrying Value | ||
Assets | ||
Mortgage loans | 8,020 | 7,090 |
Policy loans | 1,190 | 1,266 |
Real estate joint ventures | 21 | 23 |
Other limited partnership interests | 46 | 52 |
Premiums, reinsurance and other receivables | 2,091 | 6,074 |
Liabilities | ||
Policyholder account balances | 16,586 | 18,968 |
Long-term debt | 782 | 788 |
Other liabilities | 1,998 | 217 |
Separate account liabilities | 1,224 | 1,275 |
Estimated Fair Value | ||
Assets | ||
Mortgage loans | 8,522 | 7,386 |
Policy loans | 1,297 | 1,347 |
Real estate joint ventures | 61 | 65 |
Other limited partnership interests | 50 | 57 |
Premiums, reinsurance and other receivables | 3,098 | 7,243 |
Liabilities | ||
Policyholder account balances | 18,692 | 20,339 |
Long-term debt | 1,076 | 1,070 |
Other liabilities | 1,998 | 217 |
Separate account liabilities | 1,224 | 1,275 |
Estimated Fair Value | Level 1 | ||
Assets | ||
Mortgage loans | 0 | 0 |
Policy loans | 0 | 0 |
Real estate joint ventures | 0 | 0 |
Other limited partnership interests | 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 | 846 | 917 |
Real estate joint ventures | 0 | 0 |
Other limited partnership interests | 0 | 0 |
Premiums, reinsurance and other receivables | 130 | 80 |
Liabilities | ||
Policyholder account balances | 0 | 0 |
Long-term debt | 1,076 | 1,070 |
Other liabilities | 1,830 | 43 |
Separate account liabilities | 1,224 | 1,275 |
Estimated Fair Value | Level 3 | ||
Assets | ||
Mortgage loans | 8,522 | 7,386 |
Policy loans | 451 | 430 |
Real estate joint ventures | 61 | 65 |
Other limited partnership interests | 50 | 57 |
Premiums, reinsurance and other receivables | 2,968 | 7,163 |
Liabilities | ||
Policyholder account balances | 18,692 | 20,339 |
Long-term debt | 0 | 0 |
Other liabilities | 168 | 174 |
Separate account liabilities | $ 0 | $ 0 |
Fair Value (Recurring Fair Va84
Fair Value (Recurring Fair Value Measurements) (Narrative) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Net Embedded Derivatives | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | $ (77) | $ (63) |
Fair Value (Nonrecurring Fair85
Fair Value (Nonrecurring Fair Value Measurements) (Narrative) (Details) - Private Equity And Debt Funds | 6 Months Ended |
Jun. 30, 2016 | |
Minimum | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |
Liquidation period | 2 years |
Maximum | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |
Liquidation period | 10 years |
Equity (Components of Accumulat
Equity (Components of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance, beginning of period | $ 2,588 | $ 2,720 | $ 1,628 | $ 2,426 |
OCI before reclassifications | 192 | (1,622) | 1,618 | (1,147) |
Deferred income tax benefit (expense) | (77) | 571 | (571) | 406 |
AOCI before reclassifications, net of income tax | 2,703 | 1,669 | 2,675 | 1,685 |
Amounts reclassified from AOCI | (34) | 4 | 9 | (20) |
Deferred income tax benefit (expense) | 12 | (1) | (3) | 7 |
Amounts reclassified from AOCI, net of income tax | (22) | 3 | 6 | (13) |
Balance, end of period | 2,681 | 1,672 | 2,681 | 1,672 |
Unrealized Investment Gains (Losses), Net of Related Offsets | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance, beginning of period | 2,372 | 2,488 | 1,415 | 2,250 |
OCI before reclassifications | 107 | (1,519) | 1,520 | (1,126) |
Deferred income tax benefit (expense) | (51) | 536 | (539) | 398 |
AOCI before reclassifications, net of income tax | 2,428 | 1,505 | 2,396 | 1,522 |
Amounts reclassified from AOCI | (23) | 7 | 26 | (19) |
Deferred income tax benefit (expense) | 8 | (2) | (9) | 7 |
Amounts reclassified from AOCI, net of income tax | (15) | 5 | 17 | (12) |
Balance, end of period | 2,413 | 1,510 | 2,413 | 1,510 |
Unrealized Gains (Losses) on Derivatives | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance, beginning of period | 246 | 245 | 239 | 183 |
OCI before reclassifications | 70 | (83) | 87 | 9 |
Deferred income tax benefit (expense) | (24) | 28 | (30) | (3) |
AOCI before reclassifications, net of income tax | 292 | 190 | 296 | 189 |
Amounts reclassified from AOCI | (11) | (3) | (17) | (1) |
Deferred income tax benefit (expense) | 4 | 1 | 6 | 0 |
Amounts reclassified from AOCI, net of income tax | (7) | (2) | (11) | (1) |
Balance, end of period | 285 | 188 | 285 | 188 |
Foreign Currency Translation Adjustments | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance, beginning of period | (30) | (13) | (26) | (7) |
OCI before reclassifications | 15 | (20) | 11 | (30) |
Deferred income tax benefit (expense) | (2) | 7 | (2) | 11 |
AOCI before reclassifications, net of income tax | (17) | (26) | (17) | (26) |
Amounts reclassified from AOCI | 0 | 0 | 0 | 0 |
Deferred income tax benefit (expense) | 0 | 0 | 0 | 0 |
Amounts reclassified from AOCI, net of income tax | 0 | 0 | 0 | 0 |
Balance, end of period | $ (17) | $ (26) | $ (17) | $ (26) |
Equity (Reclassifications Out o
Equity (Reclassifications Out of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net investment gains (losses) | $ 15 | $ (5) | $ (33) | $ 37 |
Net derivative gains (losses) | (3,230) | (17) | (3,235) | 68 |
Net investment income | 678 | 689 | 1,305 | 1,324 |
Income (loss) from continuing operations before provision for income tax | (2,443) | 472 | (2,251) | 859 |
Provision for income tax expense (benefit) | 886 | (132) | 855 | (235) |
Net income (loss) | (1,557) | 340 | (1,396) | 624 |
Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net income (loss) | 22 | (3) | (6) | 13 |
Reclassification out of Accumulated Other Comprehensive Income | Unrealized Investment Gains (Losses), Net of Related Offsets | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net investment gains (losses) | 21 | (8) | (25) | 11 |
Net derivative gains (losses) | 0 | (1) | 0 | (5) |
Net investment income | 2 | 2 | (1) | 13 |
Income (loss) from continuing operations before provision for income tax | 23 | (7) | (26) | 19 |
Provision for income tax expense (benefit) | (8) | 2 | 9 | (7) |
Net income (loss) | 15 | (5) | (17) | 12 |
Reclassification out of Accumulated Other Comprehensive Income | Unrealized Gains (Losses) on Derivatives | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Income (loss) from continuing operations before provision for income tax | 11 | 3 | 17 | 1 |
Provision for income tax expense (benefit) | (4) | (1) | (6) | 0 |
Net income (loss) | 7 | 2 | 11 | 1 |
Reclassification out of Accumulated Other Comprehensive Income | Unrealized Gains (Losses) on Derivatives | Interest rate swaps | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net derivative gains (losses) | 12 | 0 | 12 | 1 |
Net investment income | 0 | 1 | 1 | 1 |
Reclassification out of Accumulated Other Comprehensive Income | Unrealized Gains (Losses) on Derivatives | Interest rate forwards | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net derivative gains (losses) | (1) | 0 | 1 | 1 |
Net investment income | 1 | 0 | 2 | 1 |
Reclassification out of Accumulated Other Comprehensive Income | Unrealized Gains (Losses) on Derivatives | Foreign currency swaps | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net derivative gains (losses) | (1) | 2 | 1 | (2) |
Reclassification out of Accumulated Other Comprehensive Income | Unrealized Gains (Losses) on Derivatives | Credit forwards | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net derivative gains (losses) | $ 0 | $ 0 | $ 0 | $ (1) |
Other Expenses (Other Expenses)
Other Expenses (Other Expenses) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Other Income and Expenses [Abstract] | ||||
Compensation | $ 98 | $ 111 | $ 220 | $ 236 |
Commissions | 109 | 150 | 272 | 314 |
Volume-related costs | 31 | 12 | 62 | 59 |
Affiliated expense on ceded and assumed reinsurance | 73 | 71 | 136 | 158 |
Capitalization of DAC | (68) | (86) | (161) | (185) |
Amortization of DAC and VOBA | (282) | 57 | (103) | 252 |
Interest expense on debt | 19 | 18 | 36 | 36 |
Premium taxes, licenses and fees | 13 | 14 | 29 | 22 |
Professional services | 21 | 4 | 26 | 10 |
Rent and related expenses | 15 | 13 | 29 | 30 |
Other | 102 | 81 | 210 | 160 |
Total other expenses | $ 131 | $ 445 | $ 756 | $ 1,092 |
Contingencies, Commitments an89
Contingencies, Commitments and Guarantees (Commitments and Guarantees - Narrative) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Liabilities for indemnities, guarantees and commitments | $ 2 | $ 2 |
Cumulative maximum indemnities and guarantees contractual limitation | 229 | |
Minimum | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Indemnities and guarantees contractual limitation range | 6 | |
Maximum | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Indemnities and guarantees contractual limitation range | 223 | |
Mortgage Loan Commitments | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability | 84 | 124 |
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 | 992 | 1,000 |
Secured Demand Notes | Affiliated Entity | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability | 20 | 20 |
Securities Pledged as Collateral, at Fair Value | $ 27 | $ 25 |
Related Party Transactions (Eff
Related Party Transactions (Effects of Affiliated Reinsurance on Statements of Operations) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Premiums: | ||||
Net premiums | $ 202 | $ 253 | $ 511 | $ 536 |
Universal life and investment-type product policy fees: | ||||
Net universal life and investment-type product policy fees | 678 | 711 | 1,322 | 1,429 |
Other revenues: | ||||
Other revenues | 397 | 130 | 506 | 250 |
Policyholder benefits and claims: | ||||
Net policyholder benefits and claims | 813 | 582 | 1,394 | 1,174 |
Interest credited to policyholder account balances: | ||||
Net interest credited to policyholder account balances | 239 | 262 | 477 | 519 |
Other expenses: | ||||
Net other expenses | 131 | 445 | 756 | 1,092 |
Affiliated Entity | ||||
Universal life and investment-type product policy fees: | ||||
Net universal life and investment-type product policy fees | 56 | 63 | 110 | 126 |
Other revenues: | ||||
Other revenues | 45 | 54 | 94 | 104 |
Other expenses: | ||||
Net other expenses | 388 | 365 | 758 | 756 |
Affiliated Entity | Assumed | ||||
Premiums: | ||||
Reinsurance assumed | 7 | 12 | 52 | 37 |
Universal life and investment-type product policy fees: | ||||
Reinsurance assumed | 30 | 33 | 59 | 64 |
Other revenues: | ||||
Reinsurance assumed | 0 | 0 | 0 | 0 |
Policyholder benefits and claims: | ||||
Reinsurance assumed | 14 | 31 | 58 | 66 |
Interest credited to policyholder account balances: | ||||
Reinsurance assumed | 19 | 19 | 38 | 38 |
Other expenses: | ||||
Reinsurance assumed | (10) | 9 | 21 | 24 |
Affiliated Entity | Ceded | ||||
Premiums: | ||||
Reinsurance ceded | (237) | (215) | (464) | (415) |
Universal life and investment-type product policy fees: | ||||
Reinsurance ceded | (74) | (99) | (181) | (186) |
Other revenues: | ||||
Reinsurance ceded | 340 | 64 | 391 | 122 |
Policyholder benefits and claims: | ||||
Reinsurance ceded | (457) | (244) | (694) | (484) |
Interest credited to policyholder account balances: | ||||
Reinsurance ceded | (36) | (34) | (72) | (71) |
Other expenses: | ||||
Reinsurance ceded | (44) | 33 | (44) | 83 |
Affiliated Entity | Reinsurance | ||||
Premiums: | ||||
Net premiums | (230) | (203) | (412) | (378) |
Universal life and investment-type product policy fees: | ||||
Net universal life and investment-type product policy fees | (44) | (66) | (122) | (122) |
Other revenues: | ||||
Other revenues | 340 | 64 | 391 | 122 |
Policyholder benefits and claims: | ||||
Net policyholder benefits and claims | (443) | (213) | (636) | (418) |
Interest credited to policyholder account balances: | ||||
Net interest credited to policyholder account balances | (17) | (15) | (34) | (33) |
Other expenses: | ||||
Net other expenses | $ (54) | $ 42 | $ (23) | $ 107 |
Related Party Transactions (E91
Related Party Transactions (Effects of Affiliated Reinsurance on Balance Sheets) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Assets: | ||
Premiums, reinsurance and other receivables | $ 18,878 | $ 22,251 |
Deferred policy acquisition costs and value of business acquired | 5,047 | 4,809 |
Liabilities: | ||
Future policy benefits | 33,083 | 29,894 |
Policyholder account balances | 38,611 | 35,661 |
Other policy-related balances | 3,529 | 3,549 |
Other Liabilities | 10,905 | 7,682 |
Assumed | Affiliated Entity | ||
Assets: | ||
Premiums, reinsurance and other receivables | 77 | 129 |
Deferred policy acquisition costs and value of business acquired | 157 | 120 |
Total assets | 234 | 249 |
Liabilities: | ||
Future policy benefits | 635 | 630 |
Policyholder account balances | 1,297 | 897 |
Other policy-related balances | 1,740 | 1,785 |
Other Liabilities | 19 | 27 |
Total liabilities | 3,691 | 3,339 |
Ceded | Affiliated Entity | ||
Assets: | ||
Premiums, reinsurance and other receivables | 9,173 | 12,746 |
Deferred policy acquisition costs and value of business acquired | (773) | (861) |
Total assets | 8,400 | 11,885 |
Liabilities: | ||
Future policy benefits | (245) | (70) |
Policyholder account balances | 0 | 0 |
Other policy-related balances | 707 | 755 |
Other Liabilities | 5,349 | 4,691 |
Total liabilities | $ 5,811 | $ 5,376 |
Related Party Transactions (Ser
Related Party Transactions (Service Agreements - Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Related Party Transaction, Due from (to) Related Party [Abstract] | |||||
Net receivables (payables) due from (to) affiliates | $ 45 | $ 45 | $ 136 | ||
Related Party Transaction [Line Items] | |||||
Other expenses | 131 | $ 445 | 756 | $ 1,092 | |
Universal life and investment-type product policy fees | 678 | 711 | 1,322 | 1,429 | |
Other revenues | 397 | 130 | 506 | 250 | |
Affiliated Entity | |||||
Related Party Transaction [Line Items] | |||||
Other expenses | 388 | 365 | 758 | 756 | |
Universal life and investment-type product policy fees | 56 | 63 | 110 | 126 | |
Other revenues | $ 45 | $ 54 | $ 94 | $ 104 |
Related Party Transactions (Rei
Related Party Transactions (Reinsurance Transactions - Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Apr. 01, 2016 | Dec. 31, 2015 | |
Reinsurance Disclosures [Abstract] | ||||||
Embedded Derivative, Fair Value of Embedded Derivative Liability | $ 6,115 | $ 6,115 | $ 1,324 | |||
Net derivatives gains (losses) | (3,742) | $ 770 | (4,522) | $ 534 | ||
Embedded Derivative, Fair Value of Embedded Derivative Asset | 336 | 336 | 214 | |||
Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest | (2,443) | 472 | (2,251) | 859 | ||
Deferred Policy Acquisition Costs and Value of Business Acquired | 5,047 | 5,047 | 4,809 | |||
Premiums, reinsurance and other receivables | (18,878) | (18,878) | (22,251) | |||
Affiliated Entity | Assumed guaranteed minimum benefits | ||||||
Reinsurance Disclosures [Abstract] | ||||||
Embedded Derivative, Fair Value of Embedded Derivative Liability | 1,300 | 1,300 | 897 | |||
Net derivatives gains (losses) | (259) | 131 | (395) | 68 | ||
Affiliated Entity | Funds Withheld On Ceded Reinsurance [Member] | ||||||
Reinsurance Disclosures [Abstract] | ||||||
Embedded Derivative, Fair Value of Embedded Derivative Liability | 603 | 603 | 244 | |||
Net derivatives gains (losses) | $ (193) | 218 | $ (359) | 142 | ||
Coinsurance Funds Withheld Basis, Percent | 90.00% | 90.00% | ||||
Affiliated Entity | Separate AC Annuities MLIC [Member] | ||||||
Reinsurance Disclosures [Abstract] | ||||||
Net derivatives gains (losses) | 1 | $ 1 | ||||
Embedded Derivative, Fair Value of Embedded Derivative Asset | $ 5 | $ 5 | 4 | |||
Affiliated Entity | Funds Withheld On Ceded MrD2 [Member] | ||||||
Reinsurance Disclosures [Abstract] | ||||||
Coinsurance Funds Withheld Basis, Percent | 90.00% | 90.00% | ||||
Reinsurance recoverables | $ 68 | $ 68 | 126 | |||
Funds Held under Reinsurance Agreements, Liability | 19 | 19 | 79 | |||
Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest | $ 4 | $ 38 | ||||
Affiliated Entity | Funds Withheld On Ceded MrD [Member] | ||||||
Reinsurance Disclosures [Abstract] | ||||||
Coinsurance Funds Withheld Basis, Percent | 90.00% | 90.00% | ||||
Reinsurance recoverables | $ 114 | $ 114 | 81 | |||
Funds Held under Reinsurance Agreements, Liability | 58 | 58 | $ 23 | |||
Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest | 3 | $ 8 | $ 49 | 11 | ||
Maximum | Affiliated Entity | Separate AC Annuities MLIC [Member] | ||||||
Reinsurance Disclosures [Abstract] | ||||||
Net derivatives gains (losses) | 1 | $ 1 | ||||
Contract Termination | Affiliated Entity | Recapture MLIC [Member] | ||||||
Reinsurance Disclosures [Abstract] | ||||||
Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest | $ 246 | |||||
Cash, Cash Equivalents, and Short-term Investments | $ 4,300 | |||||
Deferred Policy Acquisition Costs and Value of Business Acquired | 87 | |||||
Premiums, reinsurance and other receivables | $ 4,000 |