Cover page Document Information
Cover page Document Information | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2019 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Shell Company | false | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Cover page Entity Addresses
Cover page Entity Addresses | 6 Months Ended |
Jun. 30, 2019 | |
Entity Addresses [Line Items] | |
Entity Address, Address Line One | One Hartford Plaza |
Entity Address, City or Town | Hartford |
Entity Address, State or Province | CT |
Entity Address, Postal Zip Code | 06155 |
City Area Code | (860) |
Local Phone Number | 547-5000 |
Cover page Entities
Cover page Entities | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Entity Information [Line Items] | ||
Entity File Number | 001-13958 | |
Entity Registrant Name | THE HARTFORD FINANCIAL SERVICES GROUP, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 13-3317783 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Central Index Key | 0000874766 | |
Current Fiscal Year End Date | --12-31 |
Cover page Entity Listings
Cover page Entity Listings - $ / shares | 6 Months Ended | |
Jun. 30, 2019 | Jul. 29, 2019 | |
Entity Listings [Line Items] | ||
Security Exchange Name | NYSE | |
Entity Common Stock, Shares Outstanding | 361,581,394 | |
Entity Listing, Par Value Per Share | $ 0.01 | |
HIG [Member] | ||
Entity Listings [Line Items] | ||
Trading Symbol | HIG | |
HIG 41 [Member] | ||
Entity Listings [Line Items] | ||
Trading Symbol | HIG 41 | |
HGH [Member] | ||
Entity Listings [Line Items] | ||
Trading Symbol | HGH | |
HIG PR G [Member] | ||
Entity Listings [Line Items] | ||
Trading Symbol | HIG PR G | |
Common Stock, par value $0.01 per share [Domain] | ||
Entity Listings [Line Items] | ||
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
6.10% Notes due October 1, 2041 [Domain] | ||
Entity Listings [Line Items] | ||
Title of 12(b) Security | 6.10% Notes due October 1, 2041 | |
7.875% Fixed-to-Floating Rate Junior Subordinated Debentures due 2042 [Domain] | ||
Entity Listings [Line Items] | ||
Title of 12(b) Security | 7.875% Fixed-to-Floating Rate Junior Subordinated Debentures due 2042 | |
Depositary Shares, Each Representing a 1/1,000th Interest in a Share of 6.000% Non-Cumulative Preferred Stock, Series G, par value $0.01 per share [Domain] | ||
Entity Listings [Line Items] | ||
Title of 12(b) Security | Depositary Shares, Each Representing a 1/1,000th Interest in a Share of 6.000% Non-Cumulative Preferred Stock, Series G, par value $0.01 per share |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenues | ||||
Premiums Earned, Net | $ 4,166 | $ 3,958 | $ 8,106 | $ 7,885 |
Fee income | 326 | 327 | 640 | 650 |
Net investment income | 488 | 428 | 958 | 879 |
Net realized capital gains (losses): | ||||
Total other-than-temporary impairment (OTTI) losses | 0 | 0 | (4) | (2) |
OTTI losses recognized in other comprehensive income (“OCI”) | 0 | 0 | 2 | 2 |
Net OTTI losses recognized in earnings | 0 | 0 | (2) | 0 |
Other net realized capital gains | 80 | 52 | 245 | 22 |
Total net realized capital gains (losses) | 80 | 52 | 243 | 22 |
Other revenues | 32 | 24 | 85 | 44 |
Total revenues | 5,092 | 4,789 | 10,032 | 9,480 |
Benefits, losses and expenses | ||||
Benefits, losses and loss adjustment expenses | 2,934 | 2,738 | 5,619 | 5,433 |
Amortization of deferred policy acquisition costs (DAC) | 392 | 344 | 747 | 686 |
Insurance operating costs and other expenses | 1,141 | 1,067 | 2,189 | 2,104 |
Gain (Loss) on Extinguishment of Debt | 0 | (6) | 0 | (6) |
Loss on reinsurance transaction | 91 | 0 | 91 | 0 |
Interest expense | 63 | 79 | 127 | 159 |
Amortization of other intangible assets | 15 | 18 | 28 | 36 |
Total benefits, losses and expenses | 4,636 | 4,252 | 8,801 | 8,424 |
Income from continuing operations, before tax | 456 | 537 | 1,231 | 1,056 |
Income tax expense | 84 | 103 | 229 | 194 |
Income from continuing operations, net of tax | 372 | 434 | 1,002 | 862 |
Income (Loss) from Discontinued Operations, Net of Tax | 0 | 148 | 0 | 317 |
Net income | 372 | 582 | 1,002 | 1,179 |
Dividends declared on preferred stock | 0 | 0 | 5 | 0 |
Net income available to common stockholders | $ 372 | $ 582 | $ 997 | $ 1,179 |
EPS | ||||
Basic - Income from continuing ops, net of tax, available to common stockholders per common share | $ 1.03 | $ 1.21 | $ 2.76 | $ 2.41 |
Diluted - Income from continuing ops, net of tax, available to common stockholders per common share | 1.02 | 1.19 | 2.73 | 2.37 |
Basic - Net income available to common stockholders per common share | 1.03 | 1.62 | 2.76 | 3.29 |
Diluted - Net income available to common stockholders per common share | $ 1.02 | $ 1.60 | $ 2.73 | $ 3.24 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 372 | $ 582 | $ 1,002 | $ 1,179 |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||
Changes in net unrealized gain on securities | 664 | (1,138) | 1,343 | (1,993) |
Other than Temporary Impairment Losses, Investments, Portion in Other Comprehensive Income Loss, Tax, Including Portion Attributable to Noncontrolling Interest, Available-for-sale Securities | 0 | 2 | 1 | 0 |
Changes in net gain on cash flow hedging instruments | 11 | 12 | 16 | (32) |
Changes in foreign currency translation adjustments | 3 | 1 | 4 | (5) |
Changes in pension and other postretirement plan adjustments | 9 | 9 | 17 | 19 |
OCI, net of tax | 687 | (1,114) | 1,381 | (2,011) |
Comprehensive income (loss) | $ 1,059 | $ (532) | $ 2,383 | $ (832) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Investments: | ||
Fixed maturities, available-for-sale, at fair value (amortized cost of $39,429 and $35,603) | $ 41,166 | $ 35,652 |
Fixed maturities, at fair value using the fair value option | 49 | 22 |
Equity securities, at fair value | 1,533 | 1,214 |
Mortgage loans (net of allowances for loan losses of $0 and $1) | 3,612 | 3,704 |
Limited partnerships and other alternative investments | 1,734 | 1,723 |
Other investments | 311 | 192 |
Short-term investments | 2,364 | 4,283 |
Total investments | 50,769 | 46,790 |
Cash | 226 | 112 |
Restricted Cash | 57 | 9 |
Premiums receivable and agents’ balances, net | 4,726 | 3,995 |
Reinsurance recoverables, net | 5,394 | 4,357 |
Deferred policy acquisition costs | 722 | 670 |
Deferred income taxes, net | 615 | 1,248 |
Goodwill | 1,913 | 1,290 |
Property and equipment, net | 1,222 | 1,006 |
Other intangible assets, net | 1,191 | 657 |
Other assets | 2,637 | 2,173 |
Total assets | 69,472 | 62,307 |
Liabilities | ||
Unpaid losses and loss adjustment expenses | 36,104 | 33,029 |
Reserve for future policy benefits | 644 | 642 |
Other policyholder funds and benefits payable | 790 | 767 |
Unearned premiums | 6,833 | 5,282 |
Short-term debt | 500 | 413 |
Long-term Debt | 4,050 | 4,265 |
Other liabilities | 5,259 | 4,808 |
Total liabilities | 54,180 | 49,206 |
Stockholders' Equity | ||
Preferred stock, $0.01 par value — 50,000,000 shares authorized, 13,800 shares issued at June 30, 2019 and December 31, 2018, aggregate liquidation preference of $345 | 334 | 334 |
Common stock, $0.01 par value — 1,500,000,000 shares authorized, 384,923,222 shares issued at June 30, 2019 and December 31, 2018 | 4 | 4 |
Additional paid-in capital | 4,300 | 4,378 |
Retained earnings | 11,836 | 11,055 |
Treasury stock, at cost — 23,317,797 and 25,772,238 shares | (984) | (1,091) |
Accumulated other comprehensive loss, net of tax | (198) | (1,579) |
Total stockholders’ equity | 15,292 | 13,101 |
Total liabilities and stockholders’ equity | $ 69,472 | $ 62,307 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Fixed maturities, available-for-sale, at fair value (amortized cost of $39,429 and $35,603) | $ 39,429 | $ 35,603 |
Mortgage loans (net of allowances for loan losses of $0 and $1) | $ 0 | $ 1 |
Preferred stock, 13,800 shares issued | 13,800,000 | 13,800,000 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Preferred stock aggregate liquidation preference | $ 345 | $ 345 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 1,500,000,000 | 1,500,000,000 |
Common stock 384,923,222 shares issued at March 31, 2019 and December 31, 2018 | 384,923,222 | 384,923,222 |
Treasury stock, at cost — 23,317,797 and 25,772,238 shares | 23,317,797 | 25,772,238 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Millions | Total | Preferred Stock [Member] | Common Stock | Additional Paid-in Capital | Retained Earnings | Treasury Stock | AOCI Attributable to Parent [Member] |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Cumulative effect of accounting changes, net of tax | $ 5 | $ (5) | |||||
Adjusted balance, beginning of period | 9,647 | 658 | |||||
Beginning balance at Dec. 31, 2017 | $ 4,379 | 9,642 | $ (1,194) | 663 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of shares under incentive and stock compensation plans | (83) | ||||||
Stock-based compensation plans expense | 83 | ||||||
Issuance of shares for warrant exercise | (5) | ||||||
Net income | $ 1,179 | 1,179 | |||||
Dividends declared on preferred stock | 0 | 0 | |||||
Dividends declared on common stock | (177) | ||||||
Treasury stock acquired | 0 | ||||||
Issuance of shares under incentive and stock compensation plans | 95 | ||||||
Net shares acquired related to employee incentive and stock compensation plans | (34) | ||||||
Stock Issued During Period, Value, Treasury Stock Reissued | 5 | ||||||
Total other comprehensive income (loss) | (2,011) | ||||||
Ending balance at Jun. 30, 2018 | $ 12,546 | $ 0 | $ 4 | 4,374 | 10,649 | (1,128) | (1,353) |
Preferred Shares Outstanding, beginning of period at Dec. 31, 2017 | 0 | ||||||
Preferred Shares Outstanding | |||||||
Stock Issued During Period, Shares, New Issues | 0 | ||||||
Preferred Shares Outstanding, end of period at Jun. 30, 2018 | 0 | ||||||
Common Shares Outstanding, beginning of period (in thousands) at Dec. 31, 2017 | 356,835 | ||||||
Stock Issued or Granted During Period, Share-based Compensation [Abstract] | |||||||
Treasury stock acquired | 0 | ||||||
Issuance of shares under incentive and stock compensation plans | 2,042 | ||||||
Return of shares under incentive and stock compensation plans to treasury stock | (637) | ||||||
Issuance of shares for warrant exercise | 119 | ||||||
Common Shares Outstanding, at end of period at Jun. 30, 2018 | 358,359 | ||||||
Stock Issued or Granted During Period, Share-based Compensation [Abstract] | |||||||
Cash dividends declared per common share | $ 0.50 | ||||||
Cash dividends declared per preferred share | $ 0 | ||||||
Cumulative effect of accounting changes, net of tax | 0 | 0 | |||||
Adjusted balance, beginning of period | 10,156 | (239) | |||||
Beginning balance at Mar. 31, 2018 | 4,363 | 10,156 | (1,141) | (239) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of shares under incentive and stock compensation plans | (9) | ||||||
Stock-based compensation plans expense | 22 | ||||||
Issuance of shares for warrant exercise | (2) | ||||||
Net income | $ 582 | 582 | |||||
Dividends declared on preferred stock | 0 | 0 | |||||
Dividends declared on common stock | (89) | ||||||
Treasury stock acquired | 0 | ||||||
Issuance of shares under incentive and stock compensation plans | 14 | ||||||
Net shares acquired related to employee incentive and stock compensation plans | (3) | ||||||
Stock Issued During Period, Value, Treasury Stock Reissued | 2 | ||||||
Total other comprehensive income (loss) | (1,114) | ||||||
Ending balance at Jun. 30, 2018 | $ 12,546 | $ 0 | $ 4 | 4,374 | 10,649 | (1,128) | (1,353) |
Preferred Shares Outstanding, beginning of period at Mar. 31, 2018 | 0 | ||||||
Preferred Shares Outstanding | |||||||
Stock Issued During Period, Shares, New Issues | 0 | ||||||
Preferred Shares Outstanding, end of period at Jun. 30, 2018 | 0 | ||||||
Common Shares Outstanding, beginning of period (in thousands) at Mar. 31, 2018 | 358,077 | ||||||
Stock Issued or Granted During Period, Share-based Compensation [Abstract] | |||||||
Treasury stock acquired | 0 | ||||||
Issuance of shares under incentive and stock compensation plans | 272 | ||||||
Return of shares under incentive and stock compensation plans to treasury stock | (42) | ||||||
Issuance of shares for warrant exercise | 52 | ||||||
Common Shares Outstanding, at end of period at Jun. 30, 2018 | 358,359 | ||||||
Stock Issued or Granted During Period, Share-based Compensation [Abstract] | |||||||
Cash dividends declared per common share | $ 0.25 | ||||||
Cash dividends declared per preferred share | $ 0 | ||||||
Cumulative effect of accounting changes, net of tax | 0 | 0 | |||||
Adjusted balance, beginning of period | 11,055 | (1,579) | |||||
Beginning balance at Dec. 31, 2018 | $ 13,101 | 4,378 | 11,055 | (1,091) | (1,579) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of shares under incentive and stock compensation plans | (74) | ||||||
Stock-based compensation plans expense | 76 | ||||||
Issuance of shares for warrant exercise | (80) | ||||||
Net income | 1,002 | 1,002 | |||||
Dividends declared on preferred stock | (5) | (5) | |||||
Dividends declared on common stock | (216) | ||||||
Treasury stock acquired | (27) | ||||||
Issuance of shares under incentive and stock compensation plans | 85 | ||||||
Net shares acquired related to employee incentive and stock compensation plans | (31) | ||||||
Stock Issued During Period, Value, Treasury Stock Reissued | 80 | ||||||
Total other comprehensive income (loss) | 1,381 | ||||||
Ending balance at Jun. 30, 2019 | $ 15,292 | $ 334 | $ 4 | 4,300 | 11,836 | (984) | (198) |
Preferred Shares Outstanding, beginning of period at Dec. 31, 2018 | 13,800 | ||||||
Preferred Shares Outstanding | |||||||
Stock Issued During Period, Shares, New Issues | 0 | ||||||
Preferred Shares Outstanding, end of period at Jun. 30, 2019 | 13,800 | ||||||
Common Shares Outstanding, beginning of period (in thousands) at Dec. 31, 2018 | 359,151 | ||||||
Stock Issued or Granted During Period, Share-based Compensation [Abstract] | |||||||
Treasury stock acquired | (505) | ||||||
Issuance of shares under incentive and stock compensation plans | 1,859 | ||||||
Return of shares under incentive and stock compensation plans to treasury stock | (621) | ||||||
Issuance of shares for warrant exercise | 1,721 | ||||||
Common Shares Outstanding, at end of period at Jun. 30, 2019 | 361,605 | ||||||
Stock Issued or Granted During Period, Share-based Compensation [Abstract] | |||||||
Cash dividends declared per common share | $ 0.60 | ||||||
Cash dividends declared per preferred share | $ 375,000,000 | ||||||
Cumulative effect of accounting changes, net of tax | 0 | 0 | |||||
Adjusted balance, beginning of period | 11,572 | (885) | |||||
Beginning balance at Mar. 31, 2019 | 4,329 | 11,572 | (1,014) | (885) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of shares under incentive and stock compensation plans | (6) | ||||||
Stock-based compensation plans expense | 21 | ||||||
Issuance of shares for warrant exercise | (44) | ||||||
Net income | $ 372 | 372 | |||||
Dividends declared on preferred stock | 0 | 0 | |||||
Dividends declared on common stock | (108) | ||||||
Treasury stock acquired | (27) | ||||||
Issuance of shares under incentive and stock compensation plans | 14 | ||||||
Net shares acquired related to employee incentive and stock compensation plans | (1) | ||||||
Stock Issued During Period, Value, Treasury Stock Reissued | 44 | ||||||
Total other comprehensive income (loss) | 687 | ||||||
Ending balance at Jun. 30, 2019 | $ 15,292 | $ 334 | $ 4 | $ 4,300 | $ 11,836 | $ (984) | $ (198) |
Preferred Shares Outstanding, beginning of period at Mar. 31, 2019 | 13,800 | ||||||
Preferred Shares Outstanding | |||||||
Stock Issued During Period, Shares, New Issues | 0 | ||||||
Preferred Shares Outstanding, end of period at Jun. 30, 2019 | 13,800 | ||||||
Common Shares Outstanding, beginning of period (in thousands) at Mar. 31, 2019 | 360,865 | ||||||
Stock Issued or Granted During Period, Share-based Compensation [Abstract] | |||||||
Treasury stock acquired | (500) | (505) | |||||
Issuance of shares under incentive and stock compensation plans | 325 | ||||||
Return of shares under incentive and stock compensation plans to treasury stock | (20) | ||||||
Issuance of shares for warrant exercise | 940 | ||||||
Common Shares Outstanding, at end of period at Jun. 30, 2019 | 361,605 | ||||||
Stock Issued or Granted During Period, Share-based Compensation [Abstract] | |||||||
Cash dividends declared per common share | $ 0.30 | ||||||
Cash dividends declared per preferred share | $ 0 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Operating Activities | ||
Net income | $ 1,002 | $ 1,179 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities | ||
Net realized capital losses (gains) | (243) | 31 |
Amortization of deferred policy acquisition costs | 747 | 744 |
Additions to deferred policy acquisition costs | (799) | (701) |
Depreciation and amortization | 221 | 237 |
Loss on extinguishment of debt | 0 | (6) |
Gain on sale | 0 | (213) |
Other operating activities, net | 64 | 291 |
Change in assets and liabilities: | ||
Decrease in reinsurance recoverables | 57 | 136 |
Decrease (increase) in accrued and deferred income taxes | 277 | (112) |
Increase (decrease) in insurance liabilities | 565 | (77) |
Net change in other assets and other liabilities | (887) | (251) |
Net cash provided by operating activities | 1,004 | 1,270 |
Proceeds from the sale/maturity/prepayment of: | ||
Fixed maturities, available-for-sale | 10,770 | 14,712 |
Fixed maturities, fair value option | 4 | 11 |
Fixed maturities, fair value option | 1,024 | 1,027 |
Mortgage loans | 346 | 234 |
Partnerships | 122 | 331 |
Payments for the purchase of: | ||
Fixed maturities, available-for-sale | (11,027) | (13,261) |
Equity securities, at fair value | (951) | (953) |
Mortgage loans | (280) | (383) |
Partnerships | (167) | (316) |
Net proceeds from (payments for) derivatives | 45 | (234) |
Net proceeds from (payments for) derivatives | (44) | (59) |
Net proceeds from (payments for) short-term investments | 2,090 | (2,427) |
Other investing activities, net | (1) | (4) |
Proceeds from business sold, net of cash transferred | 0 | 1,115 |
Amount paid for business aquired, net of cash acquired | 1,901 | 0 |
Net cash provided by (used for) investing activities | 30 | (207) |
Financing Activities | ||
Deposits and other additions to investment and universal life-type contracts | 106 | 1,814 |
Withdrawals and other deductions from investment and universal life-type contracts | (77) | (9,206) |
Net transfers from separate accounts related to investment and universal life-type contracts | 6,949 | |
Repayments at maturity or settlement of consumer notes | (2) | |
Net increase (decrease) in securities loaned or sold under agreements to repurchase | (178) | (671) |
Repayment of debt | (413) | (826) |
Proceeds from the issuance of debt | 0 | (490) |
Net issuance (return) of shares under incentive and stock compensation plans | (39) | 5 |
Treasury stock acquired | (27) | 0 |
Dividends paid on preferred stock | (11) | |
Dividends paid on common stock | (216) | (180) |
Net cash used for financing activities | (855) | (1,627) |
Foreign exchange rate effect on cash | (17) | (6) |
Net increase (decrease) in cash, including cash classified as assets held for sale | 162 | (570) |
Less: Net increase (decrease) in cash classified as assets held for sale | 0 | (537) |
Net increase (decrease) in cash and restricted cash | 162 | (33) |
Cash and restricted cash– end of period | 226 | |
Supplemental Disclosure of Cash Flow Information | ||
Income tax paid | (1) | (1) |
Interest paid | 137 | 156 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | $ 283 | $ 147 |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Accounting Policies | 1 . BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The Hartford Financial Services Group, Inc. is a holding company for insurance and financial services subsidiaries that provide property and casualty insurance, group life and disability products and mutual funds and exchange-traded products to individual and business customers (collectively, “The Hartford”, the “Company”, “we” or “our”). On May 23, 2019, the Company completed the previously announced acquisition of The Navigators Group, Inc. ("Navigators Group"), a global specialty underwriter, for $ 70 a share, or $2.136 billion in cash, including transaction expenses. For further discussion of this transaction, see Note 2 - Business Acquisition of Notes to Condensed Consolidated Financial Statements. On May 31, 2018, Hartford Holdings, Inc., a wholly owned subsidiary of the Company, completed the sale of the issued and outstanding equity of Hartford Life, Inc. (“HLI”), a holding company, for its life and annuity operating subsidiaries. For further discussion of this transaction, see Note 17 - Business Disposition and Discontinued Operations of Notes to Condensed Consolidated Financial Statements. The Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information, which differ materially from the accounting practices prescribed by various insurance regulatory authorities. These Condensed Consolidated Financial Statements and Notes should be read in conjunction with the Consolidated Financial Statements and Notes thereto included in the Company's 2018 Form 10-K Annual Report. The results of operations for interim periods are not necessarily indicative of the results that may be expected for the full year. The accompanying Condensed Consolidated Financial Statements and Notes are unaudited. These financial statements reflect all adjustments (generally consisting only of normal accruals) which are, in the opinion of management, necessary for the fair presentation of the financial position, results of operations and cash flows for the interim periods. The Company's significant accounting policies are summarized in Note 1 - Basis of Presentation and Significant Accounting Policies of Notes to Consolidated Financial Statements included in the Company's 2018 Form 10-K Annual Report. Consolidation The Condensed Consolidated Financial Statements include the accounts of The Hartford Financial Services Group, Inc., and entities in which the Company directly or indirectly has a controlling financial interest. Entities in which the Company has significant influence over the operating and financing decisions but does not control are reported using the equity method. All intercompany transactions and balances between The Hartford and its subsidiaries and affiliates that are not held for sale have been eliminated. Discontinued Operations The results of operations of a component of the Company are reported in discontinued operations when certain criteria are met as of the date of disposal, or earlier if classified as held-for-sale. When a component is identified for discontinued operations reporting, amounts for prior periods are retrospectively reclassified as discontinued operations. Components are identified as discontinued operations if they are a major part of an entity's operations and financial results such as a separate major line of business or a separate major geographical area of operations. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The most significant estimates include those used in determining property and casualty and group long-term disability insurance product reserves, net of reinsurance; evaluation of goodwill for impairment; valuation of investments and derivative instruments; valuation allowance on deferred tax assets; and contingencies relating to corporate litigation and regulatory matters. Reclassifications Certain reclassifications have been made to prior year financial information to conform to the current year presentation. In particular: • Restricted cash has been reclassified out of cash to a separate line on the Condensed Consolidated Balance Sheets. Restrictions on cash primarily relate to funds that are held to support regulatory and contractual obligations. Adoption of New Accounting Standards Hedging Activities On January 1, 2019, the Company adopted the Financial Accounting Standards Board's ("FASB") updated guidance for hedge accounting through a cumulative effect adjustment of less than $1 to reclassify cumulative ineffectiveness on cash flow hedges from retained earnings to accumulated other comprehensive income ("AOCI"). The updates allow hedge accounting for new types of interest rate hedges of financial instruments and simplify documentation requirements to qualify for hedge accounting. In addition, any gain or loss from hedge ineffectiveness is reported in the same income statement line with the effective hedge results and the hedged transaction. For cash flow hedges, the ineffectiveness is recognized in earnings only when the hedged transaction affects earnings; otherwise, the ineffectiveness gains or losses remain in AOCI. Under previous accounting, total hedge ineffectiveness was reported separately in realized capital gains and losses apart from the hedged transaction. The adoption did not affect the Company’s financial position or cash flows or have a material effect on net income. Leases On January 1, 2019 , the Company adopted the FASB’s updated lease guidance. Under the updated guidance, lessees with operating leases are required to recognize a liability for the present value of future minimum lease payments with a corresponding asset for the right of use of the property. Prior to the new guidance, future minimum lease payments on operating leases were commitments that were not recognized as liabilities on the balance sheet. Leases are classified as financing or operating leases. Where the lease is economically similar to a purchase because The Hartford obtains control of the underlying asset, the lease is classified as a financing lease and the Company recognizes amortization of the right of use asset and interest expense on the liability. Where the lease provides The Hartford with only the right to control the use of the underlying asset over the lease term and the lease term is greater than one year, the lease is an operating lease and the lease cost is recognized as rental expense over the lease term on a straight-line basis. Leases with a term of one year or less are also expensed over the lease term but not recognized on the balance sheet. On adoption, The Hartford recorded a lease payment obligation of $160 for outstanding leases and a right of use asset of $150 , which is net of $10 in lease incentives received, with no change to comparative periods. As permitted by the new guidance, as of the implementation date, the Company did not reassess whether expired or existing contracts are leases or contain leases, did not change the classification of expired or existing operating leases, and did not reassess initial direct costs for existing leases to determine if deferred costs should be written-off or recorded on adoption. The adoption did not impact net income or cash flows. |
Business Acquisitions (Notes)
Business Acquisitions (Notes) | 6 Months Ended |
Jun. 30, 2019 | |
Business Combinations [Abstract] | |
Mergers, Acquisitions and Dispositions Disclosures [Text Block] | 2 . BUSINESS ACQUISITION Navigators Group On May 23, 2019 , The Hartford acquired 100% of the outstanding shares of Navigators Group for $70 a share, or $2.121 billion in cash, comprised of cash of $2.098 billion and a liability for cash awards to replace share-based awards of $23 . The acquisition of the specialty underwriter expands product offerings and geographic reach, and adds underwriting and industry talent to strengthen the Company’s value proposition to agents and customers. Fair Value of Assets Acquired and Liabilities Assumed at the Acquisition Date As of May 23, 2019 Assets Cash and invested assets $ 3,848 Premiums receivable 492 Reinsurance recoverables 1,100 Prepaid reinsurance premiums 238 Other intangible assets 580 Property and equipment 83 Other assets 99 Total Assets Acquired 6,440 Liabilities Unpaid losses and loss adjustment expenses 2,823 Unearned premiums 1,219 Long-term debt 284 Deferred income taxes, net 48 Other liabilities 568 Total Liabilities Assumed 4,942 Net identifiable assets acquired 1,498 Goodwill [1] 623 Net Assets Acquired $ 2,121 [1] Non-deductible for income tax purposes. Intangible Assets Recorded in Connection with the Acquisition Asset Amount Weighted Average Expected Life Value of in-force contracts - Property and Casualty ("P&C") $ 180 1 Distribution relationships 302 15 Trade name 17 10 Total finite life intangibles 499 10 Capacity of Lloyd's Syndicate 66 Licenses 15 Total indefinite life intangibles 81 Total other intangible assets $ 580 The value of in-force contracts represents the estimated profits relating to the unexpired contracts in force net of related prepaid reinsurance at the acquisition date through expiry of the contracts. The value of distribution relationships was estimated using net cash flows expected to come from the renewals of in-force contracts and new business sold through existing distribution partners less costs to service the related policies. The value of the trade name was estimated using an assumed cost of a market-based royalty fee applied to net cash flows expected to come from business marketed as Navigators, a brand of The Hartford. Lloyd's of London is an insurance market-place operating worldwide ("Lloyd's"). Lloyd's does not underwrite risks. Corporate members accept underwriting risks through the syndicates that they form. The Company accepts risks as the sole corporate member of Lloyd's Syndicate 1221 ("Lloyd's Syndicate"). The value of the capacity of Lloyd’s Syndicate was estimated using net cash flows attributable to Navigators Group's right to underwrite business up to an approved level of premium in the Lloyd’s market. The values for in-force contracts, the distribution relationships, trade name and the capacity of the Lloyd's Syndicate were estimated using a discounted cash flow method. Significant inputs to the valuation models include estimates of expected new business, premium retention rates, investment returns, claim costs, expenses and discount rates based on a weighted average cost of capital. The value of licenses to write insurance in over 50 U.S. jurisdictions was estimated based on recent transactions for shell companies. Expected Pre-tax Amortization Expense [1] for Acquired Intangibles as of June 30, 2019 Value of In-force Contracts Other Intangible Assets 2019 (six months) $ 84 $ 11 2020 $ 47 $ 22 2021 $ 21 $ 22 2022 $ 9 $ 22 2023 $ — $ 22 [1] In the Condensed Consolidated Statements of Operations, the amortization of value of in-force contracts is reported in amortization of deferred policy acquisition costs and the amortization of other intangible assets is reported in amortization of other intangible assets. Property and equipment includes real estate owned and right of use assets under leases that were valued based on current values and market rental rates, software that was valued based on estimated replacement cost and furniture and equipment. These will be amortized over periods consistent with the Company’s policy. The fair value of unpaid losses and loss adjustment expenses net of related reinsurance recoverables was estimated based on the present value of expected future net unpaid loss and loss adjustment expense payments discounted using a risk-free interest rate as of the acquisition date plus a risk margin. The discount and risk margin amounts substantially offset. Debt assumed in the transaction was valued based on the principal and interest payments discounted at the current market yield. The resulting premium will be amortized to interest expense using the interest method. The $623 of goodwill recognized is largely attributable to the acquired employee workforce and underwriting talent, leverageable operating platform, improved investment yield and economies of scale. Goodwill is allocated to the Company's Commercial Lines reporting segment. Immediately after closing on the acquisition of Navigators Group, effective May 23, 2019, the Company purchased an aggregate excess of loss reinsurance agreement covering adverse reserve development (“Navigators ADC”) from National Indemnity Company ("NICO") on behalf of Navigators Insurance Company and certain of its affiliates (collectively, the “Navigators Insurers”). Under the Navigators ADC, the Navigators Insurers paid NICO a reinsurance premium of $91 in exchange for reinsurance coverage, subject to limited exceptions, of $300 of adverse net loss reserve development that attaches $100 above the Navigators Insurers' existing net loss and allocated loss adjustment reserves as of December 31, 2018 subject to the treaty of $1.816 billion for accidents and losses prior to December 31, 2018. In addition to recognizing a $91 before tax charge to earnings in the second quarter of 2019 for the Navigators ADC reinsurance premium, the Company recognized a charge against earnings of $97 before tax in the second quarter of 2019 as a result of a review of Navigators Insurers’ net acquired reserves upon acquisition of the business. Navigators Insurers had previously recognized $52 before tax of adverse reserve development in the first quarter of 2019, including $32 of adverse development subject to the Navigators ADC. As such, reserve development of $97 before tax in the second quarter of 2019 included $68 remaining of the $100 Navigators ADC retention for 2018 and prior accident years and $29 of adverse reserve development related to the 2019 accident year which is not covered by the ADC. The $68 of reserve development for the 2018 and prior accident years recorded in the second quarter of 2019 was net of a $91 reinsurance recoverable recognized under the Navigators ADC with the Company having ceded $91 of the $300 available limit, leaving $209 of remaining limit. The Navigators ADC will be accounted for as retroactive reinsurance and future adverse reserve development, if any, would result in recognizing a deferred gain. Since the acquisition date of May 23, 2019, the revenues and net losses of the business acquired have been included in the Company's Consolidated Statements of Operations in the Commercial Lines reporting segment and were $178 and $141 , respectively, during the period from the acquisition date to June 30, 2019, including the $91 before tax ( $72 net of tax) of premium paid for the Navigators ADC and the charge of $97 before tax ( $77 net of tax) for the increase in acquired reserves following the acquisition. The Company recognized $15 of acquisition related costs for the six months ended June 30, 2019. These costs are included in insurance operating costs and other expenses in the Condensed Consolidated Statement of Operations. The acquisition date fair values of assets and liabilities, including insurance reserves and intangible assets, as well as the related estimated useful lives of intangibles, are provisional and are subject to revision within one year of the acquisition date. The following table presents supplemental unaudited pro forma amounts of revenue and net income for the six months ended June 30, 2019 and 2018 for the Company as though the business was acquired on January 1, 2018. Pro forma adjustments include the revenue and earnings of Navigators Group for each period as well as amortization of identifiable intangible assets acquired. Pro Forma Results for the Six Months Ended June 30 Revenue Earnings 2019 Supplemental (unaudited) combined pro forma $ 10,708 $ 997 2018 Supplemental (unaudited) combined pro forma $ 10,185 $ 1,235 |
Earnings Per Common Share
Earnings Per Common Share | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | 3 . EARNINGS PER COMMON SHARE Computation of Basic and Diluted Earnings per Common Share Three Months Ended June 30, Six Months Ended June 30, (In millions, except for per share data) 2019 2018 2019 2018 Earnings Income from continuing operations, net of tax $ 372 $ 434 $ 1,002 $ 862 Less: Preferred stock dividends — — 5 — Income from continuing operations, net of tax, available to common stockholders 372 434 $ 997 $ 862 Income from discontinued operations, net of tax, available to common stockholders — 148 — 317 Net income available to common stockholders $ 372 $ 582 $ 997 $ 1,179 Shares Weighted average common shares outstanding, basic 361.4 358.3 360.7 357.9 Dilutive effect of stock-based awards under compensation plans 3.2 4.0 3.3 4.2 Dilutive effect of warrants [1] 0.5 1.9 0.9 2.0 Weighted average common shares outstanding and dilutive potential common shares 365.1 364.2 364.9 364.1 Earnings per common share Basic Income from continuing operations, net of tax, available to common stockholders $ 1.03 $ 1.21 $ 2.76 $ 2.41 Income from discontinued operations, net of tax, available to common stockholders — 0.41 — 0.88 Net income available to common stockholders $ 1.03 $ 1.62 $ 2.76 $ 3.29 Diluted Income from continuing operations, net of tax, available to common stockholders $ 1.02 $ 1.19 $ 2.73 $ 2.37 Income from discontinued operations, net of tax, available to common stockholders — 0.41 — 0.87 Net income available to common stockholders $ 1.02 $ 1.60 $ 2.73 $ 3.24 [1] On June 26, 2019, the Capital Purchase Program warrants issued in 2009 expired. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | 4 . SEGMENT INFORMATION The Company currently conducts business principally in five reporting segments including Commercial Lines, Personal Lines, Property & Casualty Other Operations, Group Benefits and Hartford Funds, as well as a Corporate category. The Company includes in the Corporate category discontinued operations related to the life and annuity business sold in May 2018, reserves for run-off structured settlement and terminal funding agreement liabilities, capital raising activities (including debt financing and related interest expense), transaction expenses incurred in connection with an acquisition, certain purchase accounting adjustments related to goodwill and other expenses not allocated to the reporting segments. Corporate also includes investment management fees and expenses related to managing third party business, including management of the invested assets of Talcott Resolution Life, Inc. and its subsidiaries ("Talcott Resolution"). Talcott Resolution is the new holding company of the life and annuity business the Company sold in May 2018. In addition, Corporate includes a 9.7 % ownership interest in the legal entity that acquired the sold life and annuity business. For further discussion of continued involvement in the life and annuity business sold in May 2018, see Note 17 - Business Disposition and Discontinued Operations of Notes to Condensed Consolidated Financial Statements. The Company's revenues are generated primarily in the United States ("U.S.") as well as in the United Kingdom, continental Europe and other international locations. Net Income Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Commercial Lines $ 191 $ 372 $ 554 $ 670 Personal Lines 62 6 158 95 Property & Casualty Other Operations 11 5 34 22 Group Benefits 113 96 231 150 Hartford Funds 38 37 68 71 Corporate (43 ) 66 (43 ) 171 Net income 372 582 1,002 1,179 Preferred stock dividends — — 5 — Net income available to common stockholders $ 372 $ 582 $ 997 $ 1,179 Revenues Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Earned premiums and fee income: Commercial Lines Workers’ compensation $ 832 $ 832 $ 1,656 $ 1,650 Liability 233 159 401 310 Marine 27 — 27 — Package business 365 338 717 670 Property 175 152 331 302 Professional liability 98 63 166 125 Bond 65 61 125 119 Assumed reinsurance 29 — 29 — Automobile 172 148 330 297 Total Commercial Lines 1,996 1,753 3,782 3,473 Personal Lines Automobile 565 604 1,126 1,211 Homeowners 246 262 493 524 Total Personal Lines [1] 811 866 1,619 1,735 Group Benefits Group disability 723 690 1,427 1,367 Group life 638 652 1,281 1,316 Other 61 59 123 119 Total Group Benefits 1,422 1,401 2,831 2,802 Hartford Funds Mutual fund and Exchange-Traded Products ("ETP") 227 236 443 468 Talcott Resolution life and annuity separate accounts [2] 24 25 46 51 Total Hartford Funds 251 261 489 519 Corporate 12 4 25 6 Total earned premiums and fee income 4,492 4,285 8,746 8,535 Net investment income 488 428 958 879 Net realized capital gains 80 52 243 22 Other revenues 32 24 85 44 Total revenues $ 5,092 $ 4,789 $ 10,032 $ 9,480 [1] For the three months ended June 30, 2019 and 2018 , AARP members accounted for earned premiums of $726 and $758 , respectively. For the six months ended June 30, 2019 and 2018 , AARP members accounted for earned premiums of $1.4 billion and $1.5 billion , respectively. [2] Represents revenues earned for investment advisory services on the life and annuity separate account AUM sold in May 2018 that is still managed by the Company's Hartford Funds segment. Revenue from Non-Insurance Contracts with Customers Three months ended June 30, Six months ended June 30, Revenue Line Item 2019 2018 2019 2018 Commercial Lines Installment billing fees Fee income $ 9 $ 8 $ 18 $ 17 Personal Lines Installment billing fees Fee income 10 10 19 20 Insurance servicing revenues Other revenues 23 23 42 42 Group Benefits Administrative services Fee income 45 44 90 88 Hartford Funds Advisor, distribution and other management fees Fee income 228 239 446 477 Other fees Fee income 22 22 43 42 Corporate Investment management and other fees Fee income 11 4 24 6 Transition service revenues Other revenues 6 2 12 2 Total non-insurance revenues with customers $ 354 $ 352 $ 694 $ 694 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 5 . FAIR VALUE MEASUREMENTS The Company carries certain financial assets and liabilities at estimated fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants. Our fair value framework includes a hierarchy that gives the highest priority to the use of quoted prices in active markets, followed by the use of market observable inputs, followed by the use of unobservable inputs. The fair value hierarchy levels are as follows: Level 1 Fair values based primarily on unadjusted quoted prices for identical assets or liabilities, in active markets that the Company has the ability to access at the measurement date. Level 2 Fair values primarily based on observable inputs, other than quoted prices included in Level 1, or based on prices for similar assets and liabilities. Level 3 Fair values derived when one or more of the significant inputs are unobservable (including assumptions about risk). With little or no observable market, the determination of fair values uses considerable judgment and represents the Company’s best estimate of an amount that could be realized in a market exchange for the asset or liability. Also included are securities that are traded within illiquid markets and/or priced by independent brokers. The Company will classify the financial asset or liability by level based upon the lowest level input that is significant to the determination of the fair value. In most cases, both observable inputs (e.g., changes in interest rates) and unobservable inputs (e.g., changes in risk assumptions) are used to determine fair values that the Company has classified within Level 3. Assets and (Liabilities) Carried at Fair Value by Hierarchy Level as of June 30, 2019 Total Quoted Prices in Significant Significant Assets accounted for at fair value on a recurring basis Fixed maturities, AFS Asset-backed-securities ("ABS") $ 1,029 $ — $ 1,024 $ 5 Collateralized loan obligations ("CLOs") 1,925 — 1,639 286 Commercial mortgage-backed securities ("CMBS") 3,905 — 3,870 35 Corporate 16,748 — 16,180 568 Foreign government/government agencies 1,072 — 1,069 3 Municipal 10,278 — 10,278 — Residential mortgage-backed securities ("RMBS") 4,566 — 3,808 758 U.S. Treasuries 1,643 282 1,361 — Total fixed maturities 41,166 282 39,229 1,655 Fixed maturities, FVO 49 — 49 — Equity securities, at fair value 1,533 1,227 234 72 Derivative assets Credit derivatives 9 — 9 — Equity derivatives 1 — — 1 Interest rate derivatives 1 — 1 — Total derivative assets [1] 11 — 10 1 Short-term investments 2,364 929 1,435 — Total assets accounted for at fair value on a recurring basis $ 45,123 $ 2,438 $ 40,957 $ 1,728 Liabilities accounted for at fair value on a recurring basis Derivative liabilities Credit derivatives 1 — 1 — Equity derivatives (4 ) — — (4 ) Foreign exchange derivatives (5 ) — (5 ) — Interest rate derivatives (63 ) — (63 ) — Total derivative liabilities [2] (71 ) — (67 ) (4 ) Contingent consideration [3] (21 ) — — (21 ) Total liabilities accounted for at fair value on a recurring basis $ (92 ) $ — $ (67 ) $ (25 ) Assets and (Liabilities) Carried at Fair Value by Hierarchy Level as of December 31, 2018 Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets accounted for at fair value on a recurring basis Fixed maturities, AFS Asset-backed-securities ("ABS") $ 1,276 $ — $ 1,266 $ 10 Collateralized loan obligations ("CLOs") 1,437 — 1,337 100 Commercial mortgage-backed securities ("CMBS") 3,552 — 3,540 12 Corporate 13,398 — 12,878 520 Foreign government/government agencies 847 — 844 3 Municipal 10,346 — 10,346 — Residential mortgage-backed securities ("RMBS") 3,279 — 2,359 920 U.S. Treasuries 1,517 330 1,187 — Total fixed maturities 35,652 330 33,757 1,565 Fixed maturities, FVO 22 — 22 — Equity securities, at fair value 1,214 1,093 44 77 Derivative assets Credit derivatives 5 — 5 — Equity derivatives 3 — — 3 Foreign exchange derivatives (2 ) — (2 ) — Interest rate derivatives 1 — 1 — Total derivative assets [1] 7 — 4 3 Short-term investments 4,283 1,039 3,244 — Total assets accounted for at fair value on a recurring basis $ 41,178 $ 2,462 $ 37,071 $ 1,645 Liabilities accounted for at fair value on a recurring basis Derivative liabilities Credit derivatives (2 ) — (2 ) — Equity derivatives 1 — 1 — Foreign exchange derivatives (5 ) — (5 ) — Interest rate derivatives (62 ) — (63 ) 1 Total derivative liabilities [2] (68 ) — (69 ) 1 Contingent consideration [3] (35 ) — — (35 ) Total liabilities accounted for at fair value on a recurring basis $ (103 ) $ — $ (69 ) $ (34 ) [1] Includes derivative instruments in a net positive fair value position after consideration of the accrued interest and impact of collateral posting requirements which may be imposed by agreements and applicable law. See footnote 2 to this table for derivative liabilities. [2] Includes derivative instruments in a net negative fair value position (derivative liability) after consideration of the accrued interest and impact of collateral posting requirements which may be imposed by agreements and applicable law. [3] For additional information see the Contingent Consideration section below. In connection with the acquisition of Navigators Group , the Company has overseas deposits in Other Invested Assets of $49 as of June 30, 2019 , which are measured at fair value using the net asset value as a practical expedient. There were no overseas deposits held as of December 31, 2018 . Fixed Maturities, Equity Securities, Short-term Investments, and Derivatives Valuation Techniques The Company generally determines fair values using valuation techniques that use prices, rates, and other relevant information evident from market transactions involving identical or similar instruments. Valuation techniques also include, where appropriate, estimates of future cash flows that are converted into a single discounted amount using current market expectations. The Company uses a "waterfall" approach comprised of the following pricing sources and techniques, which are listed in priority order: • Quoted prices, unadjusted, for identical assets or liabilities in active markets, which are classified as Level 1. • Prices from third-party pricing services, which primarily utilize a combination of techniques. These services utilize recently reported trades of identical, similar, or benchmark securities making adjustments for market observable inputs available through the reporting date. If there are no recently reported trades, they may use a discounted cash flow technique to develop a price using expected cash flows based upon the anticipated future performance of the underlying collateral discounted at an estimated market rate. Both techniques develop prices that consider the time value of future cash flows and provide a margin for risk, including liquidity and credit risk. Most prices provided by third-party pricing services are classified as Level 2 because the inputs used in pricing the securities are observable. However, some securities that are less liquid or trade less actively are classified as Level 3. Additionally, certain long-dated securities, such as municipal securities and bank loans, include benchmark interest rate or credit spread assumptions that are not observable in the marketplace and are thus classified as Level 3. • Internal matrix pricing, which is a valuation process internally developed for private placement securities for which the Company is unable to obtain a price from a third-party pricing service. Internal pricing matrices determine credit spreads that, when combined with risk-free rates, are applied to contractual cash flows to develop a price. The Company develops credit spreads using market based data for public securities adjusted for credit spread differentials between public and private securities, which are obtained from a survey of multiple private placement brokers. The market-based reference credit spread considers the issuer’s financial strength and term to maturity, using an independent public security index and trade information, while the credit spread differential considers the non-public nature of the security. Securities priced using internal matrix pricing are classified as Level 2 because the inputs are observable or can be corroborated with observable data. • Independent broker quotes, which are typically non-binding, use inputs that can be difficult to corroborate with observable market based data. Brokers may use present value techniques using assumptions specific to the security types, or they may use recent transactions of similar securities. Due to the lack of transparency in the process that brokers use to develop prices, valuations that are based on independent broker quotes are classified as Level 3. The fair value of derivative instruments is determined primarily using a discounted cash flow model or option model technique and incorporates counterparty credit risk. In some cases, quoted market prices for exchange-traded and over-the-counter ("OTC") cleared derivatives may be used and in other cases independent broker quotes may be used. The pricing valuation models primarily use inputs that are observable in the market or can be corroborated by observable market data. The valuation of certain derivatives may include significant inputs that are unobservable, such as volatility levels, and reflect the Company’s view of what other market participants would use when pricing such instruments. Valuation Controls The fair value process for investments is monitored by the Valuation Committee, which is a cross-functional group of senior management within the Company that meets at least quarterly. The purpose of the committee is to oversee the pricing policy and procedures, as well as to approve changes to valuation methodologies and pricing sources. Controls and procedures used to assess third-party pricing services are reviewed by the Valuation Committee, including the results of annual due-diligence reviews. There are also two working groups under the Valuation Committee: a Securities Fair Value Working Group (“Securities Working Group”) and a Derivatives Fair Value Working Group ("Derivatives Working Group"). The working groups, which include various investment, operations, accounting and risk management professionals, meet monthly to review market data trends, pricing and trading statistics and results, and any proposed pricing methodology changes. The Securities Working Group reviews prices received from third parties to ensure that the prices represent a reasonable estimate of the fair value. The group considers trading volume, new issuance activity, market trends, new regulatory rulings and other factors to determine whether the market activity is significantly different than normal activity in an active market. A dedicated pricing unit follows up with trading and investment sector professionals and challenges prices of third-party pricing services when the estimated assumptions used differ from what the unit believes a market participant would use. If the available evidence indicates that pricing from third-party pricing services or broker quotes is based upon transactions that are stale or not from trades made in an orderly market, the Company places little, if any, weight on the third party service’s transaction price and will estimate fair value using an internal process, such as a pricing matrix. The Derivatives Working Group reviews the inputs, assumptions and methodologies used to ensure that the prices represent a reasonable estimate of the fair value. A dedicated pricing team works directly with investment sector professionals to investigate the impacts of changes in the market environment on prices or valuations of derivatives. New models and any changes to current models are required to have detailed documentation and are validated to a second source. The model validation documentation and results of validation are presented to the Valuation Committee for approval. The Company conducts other monitoring controls around securities and derivatives pricing including, but not limited to, the following: • Review of daily price changes over specific thresholds and new trade comparison to third-party pricing services. • Daily comparison of OTC derivative market valuations to counterparty valuations. • Review of weekly price changes compared to published bond prices of a corporate bond index. • Monthly reviews of price changes over thresholds, stale prices, missing prices, and zero prices. • Monthly validation of prices to a second source for securities in most sectors and for certain derivatives. In addition, the Company’s enterprise-wide Operational Risk Management function, led by the Chief Risk Officer, is responsible for model risk management and provides an independent review of the suitability and reliability of model inputs, as well as an analysis of significant changes to current models. Valuation Inputs Quoted prices for identical assets in active markets are considered Level 1 and consist of on-the-run U.S. Treasuries, money market funds, exchange-traded equity securities, open-ended mutual funds, certain short-term investments, and exchange traded futures and option contracts. Valuation Inputs Used in Levels 2 and 3 Measurements for Securities and Derivatives Level 2 Primary Observable Inputs Level 3 Primary Unobservable Inputs Fixed Maturity Investments Structured securities (includes ABS, CLOs, CMBS and RMBS) • Benchmark yields and spreads • Monthly payment information • Collateral performance, which varies by vintage year and includes delinquency rates, loss severity rates and refinancing assumptions • Credit default swap indices Other inputs for ABS and RMBS: • Estimate of future principal prepayments, derived from the characteristics of the underlying structure • Prepayment speeds previously experienced at the interest rate levels projected for the collateral • Independent broker quotes • Credit spreads beyond observable curve • Interest rates beyond observable curve Other inputs for less liquid securities or those that trade less actively, including subprime RMBS: • Estimated cash flows • Credit spreads, which include illiquidity premium • Constant prepayment rates • Constant default rates • Loss severity Corporates • Benchmark yields and spreads • Reported trades, bids, offers of the same or similar securities • Issuer spreads and credit default swap curves Other inputs for investment grade privately placed securities that utilize internal matrix pricing: • Credit spreads for public securities of similar quality, maturity, and sector, adjusted for non-public nature • Independent broker quotes • Credit spreads beyond observable curve • Interest rates beyond observable curve Other inputs for below investment grade privately placed securities: • Independent broker quotes • Credit spreads for public securities of similar quality, maturity, and sector, adjusted for non-public nature U.S. Treasuries, Municipals, and Foreign government/government agencies • Benchmark yields and spreads • Issuer credit default swap curves • Political events in emerging market economies • Municipal Securities Rulemaking Board reported trades and material event notices • Issuer financial statements • Credit spreads beyond observable curve • Interest rates beyond observable curve Equity Securities • Quoted prices in markets that are not active • For privately traded equity securities, internal discounted cash flow models utilizing earnings multiples or other cash flow assumptions that are not observable Short-term Investments • Benchmark yields and spreads • Reported trades, bids, offers • Issuer spreads and credit default swap curves • Material event notices and new issue money market rates Not applicable Derivatives Credit derivatives • Swap yield curve • Credit default swap curves Not applicable Equity derivatives • Equity index levels • Swap yield curve • Independent broker quotes • Equity volatility Foreign exchange derivatives • Swap yield curve • Currency spot and forward rates • Cross currency basis curves Not applicable Interest rate derivatives • Swap yield curve • Independent broker quotes • Interest rate volatility Significant Unobservable Inputs for Level 3 - Securities Assets accounted for at fair value on a recurring basis Fair Predominant Significant Unobservable Input Minimum Maximum Weighted Average [1] Impact of As of June 30, 2019 CLOs [3] $ 236 Discounted cash flows Spread 250 bps 257 bps 253 bps Decrease CMBS [3] $ 25 Discounted cash flows Spread (encompasses prepayment, default risk and loss severity) 9 bps 1,279 bps 189 bps Decrease Corporate [4] $ 387 Discounted cash flows Spread 117 bps 710 bps 254 bps Decrease RMBS [3] $ 710 Discounted cash flows Spread [6] 9 bps 416 bps 70 bps Decrease Constant prepayment rate [6] 1% 13% 6% Decrease [5] Constant default rate [6] 1% 6% 3% Decrease Loss severity [6] —% 100% 65% Decrease As of December 31, 2018 CMBS [3] $ 2 Discounted cash flows Spread (encompasses prepayment, default risk and loss severity) 9 bps 1,040 bps 182 bps Decrease Corporate [4] $ 274 Discounted cash flows Spread 145 bps 1,175 bps 263 bps Decrease RMBS [3] $ 815 Discounted cash flows Spread [6] 12 bps 215 bps 86 bps Decrease Constant prepayment rate [6] 1% 15% 6% Decrease [5] Constant default rate [6] 1% 8% 3% Decrease Loss severity [6] —% 100% 61% Decrease [1] The weighted average is determined based on the fair value of the securities. [2] Conversely, the impact of a decrease in input would have the opposite impact to the fair value as that presented in the table. [3] Excludes securities for which the Company bases fair value on broker quotations. [4] Excludes securities for which the Company bases fair value on broker quotations; however, included are broker priced lower-rated private placement securities for which the Company receives spread and yield information to corroborate the fair value. [5] Decrease for above market rate coupons and increase for below market rate coupons. [6] Generally, a change in the assumption used for the constant default rate would have been accompanied by a directionally similar change in the assumption used for the loss severity and a directionally opposite change in the assumption used for constant prepayment rate and would have resulted in wider spreads. Significant Unobservable Inputs for Level 3 - Derivatives Fair Predominant Significant Unobservable Input Minimum Maximum Weighted Average [1] Impact of As of June 30, 2019 Equity options $ (3 ) Option model Equity volatility 12 % 22 % 15 % Increase As of December 31, 2018 Interest rate swaptions [3] $ 1 Option model Interest rate volatility 3 % 3 % 3 % Increase Equity options $ 3 Option model Equity volatility 19 % 21 % 20 % Increase [1] The weighted average is determined based on the fair value of the derivatives. [2] Conversely, the impact of a decrease in input would have the opposite impact to the fair value as that presented in the table. Changes are based on long positions, unless otherwise noted. Changes in fair value will be inversely impacted for short positions. [3] The swaptions presented are purchased options that have the right to enter into a pay-fixed swap. The tables above exclude certain securities for which fair values are predominately based on independent broker quotes. While the Company does not have access to the significant unobservable inputs that independent brokers may use in their pricing process, the Company believes brokers likely use inputs similar to those used by the Company and third-party pricing services to price similar instruments. As such, in their pricing models, brokers likely use estimated loss severity rates, prepayment rates, constant default rates and credit spreads. Therefore, similar to non-broker priced securities, increases in these inputs would generally cause fair values to decrease. As of June 30, 2019 , no significant adjustments were made by the Company to broker prices received. Contingent Consideration The acquisition of Lattice Strategies LLC ("Lattice") on July 29, 2016 requires the Company to make payments to former owners of Lattice of up to $60 contingent upon growth in exchange-traded products ("ETP") assets under management ("AUM") over a period of four years beginning on the date of acquisition. The contingent consideration is measured at fair value on a quarterly basis by projecting future eligible ETP AUM over the contingency period to estimate the amount of expected payout. The future expected payout is discounted back to the valuation date using a risk-adjusted discount rate of 12.7% . The risk-adjusted discount rate is an internally generated and significant unobservable input to fair value. The contingency period for ETP AUM growth ends July 29, 2020 and management adjusts the fair value of the contingent consideration when it revises its projection of ETP AUM for the acquired business. Before discounting to fair value, the Company estimates a total contingent consideration payout of $ 43 , of which $20 was paid in the first six months of 2019 with ETP AUM reaching $2.5 billion during the second quarter of 2019. Accordingly, as of June 30, 2019, the fair value of $21 reflects remaining consideration payable of $23 , assuming ETP AUM for the acquired business grows to approximately $4.3 billion over the contingency period. Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs The Company uses derivative instruments to manage the risk associated with certain assets and liabilities. However, the derivative instrument may not be classified with the same fair value hierarchy level as the associated asset or liability. Therefore, the realized and unrealized gains and losses on derivatives reported in the Level 3 rollforward may be offset by realized and unrealized gains and losses of the associated assets and liabilities in other line items of the financial statements. Fair Value Rollforwards for Financial Instruments Classified as Level 3 for the Three Months Ended June 30, 2019 Total realized/unrealized gains (losses) Fair value as of March 31, 2019 Included in net income [1] Included in OCI [2] Purchases Settlements Sales Transfers into Level 3 [3] Transfers out of Level 3 [3] Fair value as of June 30, 2019 Assets Fixed Maturities, AFS ABS $ 9 $ — $ — $ 5 $ — $ — $ — $ (9 ) $ 5 CLOs 114 — — 202 (10 ) — — (20 ) 286 CMBS 12 — — 24 (1 ) — — — 35 Corporate 525 — 2 58 (4 ) (39 ) 34 (8 ) 568 Foreign Govt./Govt. Agencies 3 — — — — — — — 3 RMBS 771 — — 90 (58 ) — — (45 ) 758 Total Fixed Maturities, AFS 1,434 — 2 379 (73 ) (39 ) 34 (82 ) 1,655 Equity Securities, at fair value 73 — — 4 — (5 ) — — 72 Derivatives, net [4] Equity 1 (4 ) — — — — — — (3 ) Total Derivatives, net [4] 1 (4 ) — — — — — — (3 ) Total Assets $ 1,508 $ (4 ) $ 2 $ 383 $ (73 ) $ (44 ) $ 34 $ (82 ) $ 1,724 Liabilities Contingent Consideration (29 ) (2 ) — — 10 — — — (21 ) Total Liabilities $ (29 ) $ (2 ) $ — $ — $ 10 $ — $ — $ — $ (21 ) Fair Value Rollforwards for Financial Instruments Classified as Level 3 for the Six Months Ended June 30, 2019 Total realized/unrealized gains (losses) Fair value as of January 1, 2019 Included in net income [1] Included in OCI [2] Purchases Settlements Sales Transfers into Level 3 [3] Transfers out of Level 3 [3] Fair value as of June 30, 2019 Assets Fixed Maturities, AFS ABS $ 10 $ — $ — $ 5 $ (1 ) $ — $ — $ (9 ) $ 5 CLOs 100 — — 237 (10 ) (6 ) — (35 ) 286 CMBS 12 — 1 24 (2 ) — — — 35 Corporate 520 (1 ) 9 95 (6 ) (64 ) 46 (31 ) 568 Foreign Govt./Govt. Agencies 3 — — — — — — — 3 RMBS 920 1 (2 ) 134 (112 ) (35 ) — (148 ) 758 Total Fixed Maturities, AFS 1,565 — 8 495 (131 ) (105 ) 46 (223 ) 1,655 Equity Securities, at fair value 77 (1 ) — 9 — (13 ) — — 72 Derivatives, net [4] Equity 3 (6 ) — — — — — — (3 ) Interest rate 1 (1 ) — — — — — — — Total Derivatives, net [4] 4 (7 ) — — — — — — (3 ) Total Assets $ 1,646 $ (8 ) $ 8 $ 504 $ (131 ) $ (118 ) $ 46 $ (223 ) $ 1,724 Liabilities Contingent Consideration (35 ) (6 ) — — 20 — — — (21 ) Total Liabilities $ (35 ) $ (6 ) $ — $ — $ 20 $ — $ — $ — $ (21 ) Fair Value Rollforwards for Financial Instruments Classified as Level 3 for the Three Months Ended June 30, 2018 Total realized/unrealized gains (losses) Fair value as of March 31, 2018 Included in net income [1] Included in OCI [2] Purchases Settlements Sales Transfers into Level 3 [3] Transfers out of Level 3 [3] Fair value as of June 30, 2018 Assets Fixed Maturities, AFS ABS $ 14 $ — $ — $ 50 $ (1 ) $ — $ 3 $ (9 ) $ 57 CLOs 106 — — 77 — (4 ) — (20 ) 159 CMBS 33 — — 25 (2 ) (8 ) — (20 ) 28 Corporate 515 — (7 ) 66 (18 ) (8 ) 15 (4 ) 559 Foreign Govt./Govt. Agencies 2 — — 1 — — — — 3 Municipal 16 — — — — — — (7 ) 9 RMBS 1,233 — (4 ) 68 (93 ) (1 ) — (66 ) 1,137 Total Fixed Maturities, AFS 1,919 — (11 ) 287 (114 ) (21 ) 18 (126 ) 1,952 Equity Securities, at fair value 65 — 1 1 — (1 ) — — 66 Derivatives, net [4] Equity 1 (1 ) — 1 — — — — 1 Interest rate 2 — — — — — — — 2 Total Derivatives, net [4] 3 (1 ) — 1 — — — — 3 Total Assets $ 1,987 $ (1 ) $ (10 ) $ 289 $ (114 ) $ (22 ) $ 18 $ (126 ) $ 2,021 Liabilities Contingent Consideration (27 ) (4 ) — — — — — — (31 ) Total Liabilities $ (27 ) $ (4 ) $ — $ — $ — $ — $ — $ — $ (31 ) Fair Value Rollforwards for Financial Instruments Classified as Level 3 for the Six Months Ended June 30, 2018 Total realized/unrealized gains (losses) Fair value as of January 1, 2018 Included in net income [1] Included in OCI [2] Purchases Settlements Sales Transfers into Level 3 [3] Transfers out of Level 3 [3] Fair value as of June 30, 2018 Assets Fixed Maturities, AFS ABS $ 19 $ — $ — $ 50 $ (3 ) $ — $ 3 $ (12 ) $ 57 CLOs 95 — — 98 — (4 ) — (30 ) 159 CMBS 69 — (1 ) 25 (3 ) (8 ) — (54 ) 28 Corporate 520 1 (8 ) 131 (32 ) (31 ) 15 (37 ) 559 Foreign Govt./Govt. Agencies 2 — — 1 — — — — 3 Municipal 17 — (1 ) — — — — (7 ) 9 RMBS 1,230 — (7 ) 170 (174 ) (1 ) — (81 ) 1,137 Total Fixed Maturities, AFS 1,952 1 (17 ) 475 (212 ) (44 ) 18 (221 ) 1,952 Equity Securities, AFS 76 28 1 1 — (40 ) — — 66 Derivatives, net [4] Equity 1 1 — 1 — (2 ) — — 1 Interest rate 1 1 — — — — — — 2 Total Derivatives, net [4] 2 2 — 1 — (2 ) — — 3 Total Assets $ 2,030 $ 31 $ (16 ) $ 477 $ (212 ) $ (86 ) $ 18 $ (221 ) $ 2,021 Liabilities Contingent Consideration (29 ) (2 ) — — — — — — (31 ) Total Liabilities $ (29 ) $ (2 ) $ — $ — $ — $ — $ — $ — $ (31 ) [1] Amounts in these columns are generally reported in net realized capital gains (losses). All amounts are before income taxes. [2] All amounts are before income taxes. [3] Transfers in and/or (out) of Level 3 are primarily attributable to the availability of market observable information and the re-evaluation of the observability of pricing inputs. [4] Derivative instruments are reported in this table on a net basis for asset (liability) positions and reported in the Condensed Consolidated Balance Sheets in other investments and other liabilities. Changes in Unrealized Gains (Losses) for Financial Instruments Classified as Level 3 Still Held at End of Period Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 2019 2018 2019 2018 Changes in Unrealized Gain/(Loss) included in Net Income [1] [2] Changes in Unrealized Gain/(Loss) included in OCI [3] Changes in Unrealized Gain/(Loss) included in Net Income [1] [2] Changes in Unrealized Gain/(Loss) included in OCI [3] Assets Fixed Maturities, AFS Corporate $ — $ — $ 2 $ (7 ) $ (1 ) $ — $ 9 $ (8 ) RMBS — — — (4 ) — — (1 ) (7 ) Total Fixed Maturities, AFS — — 2 (11 ) (1 ) — 8 (15 ) Derivatives, net Equity (4 ) (1 ) — — (6 ) — — — Interest rate — — — — (1 ) 1 — — Total Derivatives, net (4 ) (1 ) — — (7 ) 1 — — Total Assets $ (4 ) $ (1 ) $ 2 $ (11 ) $ (8 ) $ 1 $ 8 $ (15 ) Liabilities Contingent Consideration (2 ) (4 ) — — (6 ) (2 ) — — Total Liabilities $ (2 ) $ (4 ) $ — $ — $ (6 ) $ (2 ) $ — $ — [1] All amounts in these rows are reported in net realized capital gains (losses). All amounts are before income taxes. [2] Amounts presented are for Level 3 only and therefore may not agree to other disclosures included herein. [3] Changes in unrealized gain/(loss) on fixed maturities, AFS are reported in changes in net unrealized gain on securities in the Condensed Consolidated Statements of Comprehensive Income. Changes in interest rate derivatives are reported in changes in net gain on cash flow hedging instruments in the Condensed Consolidated Statements of Comprehensive Income. Fair Value Option The Company has elected the fair value option for certain securities that contain embedded credit derivatives with underlying credit risk primarily related to residential real estate, and these securities are included within Fixed Maturities, FVO on the Condensed Consolidated Balance Sheets. The Company reports changes in the fair value of these securities in net realized capital gains and losses. As of June 30, 2019 and December 31, 2018 , the fair value of assets and liabilities using the fair value option was $49 and $22 , respectively, within the residential real estate sector. For the three and six months ended June 30, 2019 and 2018 there were no realized capital gains (losses) related to the fair value of assets using the fair value option. Financial Instruments Not Carried at Fair Value Financial Assets and Liabilities Not Carried at Fair Value June 30, 2019 December 31, 2018 Fair Value Hierarchy Level Carrying Amount Fair Value Fair Value Hierarchy Level Carrying Amount Fair Value Assets Mortgage loans Level 3 $ 3,612 $ 3,746 Level 3 $ 3,704 $ 3,746 Liabilities Other policyholder funds and benefits payable Level 3 $ 799 $ 816 Level 3 $ 774 $ 775 Senior notes [1] Level 2 $ 3,461 $ 4,038 Level 2 $ 3,589 $ 3,887 Junior subordinated debentures [1] Level 2 $ 1,089 $ 1,097 Level 2 $ 1,089 $ 1,052 [1] Included in long-term debt in the Condensed Consolidated Balance Sheets, except for current maturities, which are included in short-term debt. |
Investments
Investments | 6 Months Ended |
Jun. 30, 2019 | |
Investments [Abstract] | |
Investments | 6 . INVESTMENTS Net Realized Capital Gains Three Months Ended June 30, Six Months Ended June 30, (Before tax) 2019 2018 2019 2018 Gross gains on sales $ 69 $ 46 $ 113 $ 65 Gross losses on sales (19 ) (31 ) (40 ) (88 ) Equity securities [1] 30 26 162 42 Net OTTI losses recognized in earnings — — (2 ) — Valuation allowances on mortgage loans 1 — 1 — Transactional foreign currency revaluation — — — 1 Non-qualifying foreign currency derivatives (1 ) 4 — 1 Other, net [2] — 7 9 1 Net realized capital gains $ 80 $ 52 $ 243 $ 22 [1] Includes all changes in fair value and trading gains and losses for equity securities. The net unrealized gain (loss) on equity securities included in net realized capital gains (losses) related to equity securities still held as of June 30, 2019 , were $29 and $74 for the three and six months ended June 30, 2019 , respectively. The net unrealized gain (loss) on equity securities included in net realized capital gains (losses) related to equity securities still held as of June 30, 2018 , were $17 and $11 for the three and six months ended June 30, 2018 , respectively. [2] Includes gains (losses) on non-qualifying derivatives, excluding foreign currency derivatives, of $(6) and $8 , respectively, for the three months ended June 30, 2019 and 2018 . For the six months ended June 30, 2019 and 2018 , the non-qualifying derivatives, excluding foreign currency derivatives, were $8 and $(2) respectively. Net realized capital gains (losses) from investment sales are reported as a component of revenues and are determined on a specific identification basis. Before tax, net gains (losses) on sales and impairments previously reported as unrealized gains (losses) in AOCI were $50 and $71 for the three and six months ended June 30, 2019, respectively, and $(6) and $(44) for the three and six months ended June 30, 2018, respectively. Proceeds from the sales of AFS securities totaled $4.6 billion and $8.9 billion for the three and six months ended June 30, 2019 , respectively, and $4.2 billion and $8.5 billion , for the three and six months ended June 30, 2018, respectively. Recognition and Presentation of Other-Than-Temporary Impairments The Company will record an other-than-temporary impairment (“OTTI”) for fixed maturities if the Company intends to sell or it is more likely than not that the Company will be required to sell the security before a recovery in value. A corresponding charge is recorded in net realized capital losses equal to the difference between the fair value and amortized cost basis of the security. The Company will also record an OTTI for those fixed maturities for which the Company does not expect to recover the entire amortized cost basis. For these securities, the excess of the amortized cost basis over its fair value is separated into the portion representing a credit OTTI, which is recorded in net realized capital losses, and the remaining non-credit amount, which is recorded in OCI. The credit OTTI amount is the excess of its amortized cost basis over the Company’s best estimate of discounted expected future cash flows. The non-credit amount is the excess of the best estimate of the discounted expected future cash flows over the fair value. The Company’s best estimate of discounted expected future cash flows becomes the new cost basis and accretes prospectively into net investment income over the estimated remaining life of the security. Developing the Company’s best estimate of expected future cash flows is a quantitative and qualitative process that incorporates information received from third-party sources along with certain internal assumptions regarding the future performance. The Company's considerations include, but are not limited to, (a) changes in the financial condition of the issuer and the underlying collateral, (b) whether the issuer is current on contractually obligated interest and principal payments, (c) credit ratings, (d) payment structure of the security and (e) the extent to which the fair value has been less than the amortized cost of the security. For non-structured securities, assumptions include, but are not limited to, economic and industry-specific trends and fundamentals, security-specific developments, industry earnings multiples and the issuer’s ability to restructure and execute asset sales. For structured securities, assumptions include, but are not limited to, various performance indicators such as historical and projected default and recovery rates, credit ratings, current and projected delinquency rates, loan-to-value ("LTV") ratios, average cumulative collateral loss rates that vary by vintage year, prepayment speeds, and property value declines. These assumptions require the use of significant management judgment and include the probability of issuer default and estimates regarding timing and amount of expected recoveries which may include estimating the underlying collateral value. Impairments in Earnings by Type Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Credit impairments $ — $ — $ 2 $ — Intent-to-sell impairments — — — — Total impairments $ — $ — $ 2 $ — Cumulative Credit Impairments Three Months Ended June 30, Six Months Ended June 30, (Before tax) 2019 2018 2019 2018 Balance as of beginning of period $ (18 ) $ (21 ) $ (19 ) $ (25 ) Additions for credit impairments recognized on [1]: Securities not previously impaired — — (2 ) — Reductions for credit impairments previously recognized on: Securities that matured or were sold during the period — 1 3 5 Balance as of end of period $ (18 ) $ (20 ) $ (18 ) $ (20 ) [1] These additions are included in the net OTTI losses recognized in earnings in the Condensed Consolidated Statements of Operations. Available-for-Sale Securities AFS Securities by Type June 30, 2019 December 31, 2018 Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Non-Credit OTTI [1] Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Non-Credit OTTI [1] ABS $ 1,010 $ 19 $ — $ 1,029 $ — $ 1,272 $ 5 $ (1 ) $ 1,276 $ — CLOs 1,929 4 (8 ) 1,925 — 1,455 2 (20 ) 1,437 — CMBS 3,774 139 (8 ) 3,905 (4 ) 3,581 35 (64 ) 3,552 (5 ) Corporate 16,078 718 (48 ) 16,748 — 13,696 148 (446 ) 13,398 — Foreign govt./govt. agencies 1,025 48 (1 ) 1,072 — 866 7 (26 ) 847 — Municipal 9,568 710 — 10,278 — 9,972 421 (47 ) 10,346 — RMBS 4,478 90 (2 ) 4,566 — 3,270 44 (35 ) 3,279 — U.S. Treasuries 1,567 77 (1 ) 1,643 — 1,491 41 (15 ) 1,517 — Total fixed maturities, AFS $ 39,429 $ 1,805 $ (68 ) $ 41,166 $ (4 ) $ 35,603 $ 703 $ (654 ) $ 35,652 $ (5 ) [1] Represents the amount of cumulative non-credit OTTI losses recognized in OCI on securities that also had credit impairments. These losses are included in gross unrealized losses as of June 30, 2019 and December 31, 2018 . Fixed maturities, AFS, by Contractual Maturity Year June 30, 2019 December 31, 2018 Amortized Cost Fair Value Amortized Cost Fair Value One year or less $ 1,094 $ 1,100 $ 999 $ 1,002 Over one year through five years 7,164 7,332 5,786 5,791 Over five years through ten years 7,580 7,910 6,611 6,495 Over ten years 12,400 13,399 12,629 12,820 Subtotal 28,238 29,741 26,025 26,108 Mortgage-backed and asset-backed securities 11,191 11,425 9,578 9,544 Total fixed maturities, AFS $ 39,429 $ 41,166 $ 35,603 $ 35,652 Estimated maturities may differ from contractual maturities due to security call or prepayment provisions. Due to the potential for variability in payment speeds (i.e. prepayments or extensions), mortgage-backed and asset-backed securities are not categorized by contractual maturity. Concentration of Credit Risk The Company aims to maintain a diversified investment portfolio including issuer, sector and geographic stratification, where applicable, and has established certain exposure limits, diversification standards and review procedures to mitigate credit risk. The Company had no investment exposure to any credit concentration risk of a single issuer greater than 10% of the Company's stockholders' equity as of June 30, 2019 or December 31, 2018 other than U.S. government securities and certain U.S. government agencies. Unrealized Losses on AFS Securities Unrealized Loss Aging for AFS Securities by Type and Length of Time as of June 30, 2019 Less Than 12 Months 12 Months or More Total Amortized Cost Fair Value Unrealized Losses Amortized Cost Fair Value Unrealized Losses Amortized Cost Fair Value Unrealized Losses ABS $ 90 $ 90 $ — $ 29 $ 29 $ — $ 119 $ 119 $ — CLOs 1,229 1,223 (6 ) 155 153 (2 ) 1,384 1,376 (8 ) CMBS 49 48 (1 ) 372 365 (7 ) 421 413 (8 ) Corporate 315 309 (6 ) 1,504 1,462 (42 ) 1,819 1,771 (48 ) Foreign govt./govt. agencies 23 23 — 62 61 (1 ) 85 84 (1 ) Municipal 36 36 — 7 7 — 43 43 — RMBS 90 90 — 356 354 (2 ) 446 444 (2 ) U.S. Treasuries 16 16 — 163 162 (1 ) 179 178 (1 ) Total fixed maturities, AFS in an unrealized loss position $ 1,848 $ 1,835 $ (13 ) $ 2,648 $ 2,593 $ (55 ) $ 4,496 $ 4,428 $ (68 ) Unrealized Loss Aging for AFS Securities by Type and Length of Time as of December 31, 2018 Less Than 12 Months 12 Months or More Total Amortized Cost Fair Value Unrealized Losses Amortized Cost Fair Value Unrealized Losses Amortized Cost Fair Value Unrealized Losses ABS $ 566 $ 566 $ — $ 113 $ 112 $ (1 ) $ 679 $ 678 $ (1 ) CLOs 1,358 1,338 (20 ) 7 7 — 1,365 1,345 (20 ) CMBS 896 882 (14 ) 1,129 1,079 (50 ) 2,025 1,961 (64 ) Corporate 7,174 6,903 (271 ) 2,541 2,366 (175 ) 9,715 9,269 (446 ) Foreign govt./govt. agencies 407 391 (16 ) 203 193 (10 ) 610 584 (26 ) Municipal 1,643 1,613 (30 ) 292 275 (17 ) 1,935 1,888 (47 ) RMBS 1,344 1,329 (15 ) 648 628 (20 ) 1,992 1,957 (35 ) U.S. Treasuries 497 492 (5 ) 339 329 (10 ) 836 821 (15 ) Total fixed maturities, AFS in an unrealized loss position $ 13,885 $ 13,514 $ (371 ) $ 5,272 $ 4,989 $ (283 ) $ 19,157 $ 18,503 $ (654 ) As of June 30, 2019 , AFS securities in an unrealized loss position consisted of 906 securities, primarily in the corporate sector, which were depressed primarily due to widening of credit spreads since the securities were purchased. As of June 30, 2019 , 96% of these securities were depressed less than 20% of cost or amortized cost. The decrease in unrealized losses during the six months ended June 30, 2019 was primarily attributable to lower interest rates and tighter credit spreads. Most of the securities depressed for twelve months or more relate to corporate securities which were primarily depressed because current market spreads are wider than at the securities' respective purchase dates. The Company neither has an intention to sell nor does it expect to be required to sell the securities outlined in the preceding discussion. Mortgage Loans Mortgage Loan Valuation Allowances Mortgage loans are considered to be impaired when management estimates that, based upon current information and events, it is probable that the Company will be unable to collect amounts due according to the contractual terms of the loan agreement. The Company reviews mortgage loans on a quarterly basis to identify potential credit losses. Among other factors, management reviews current and projected macroeconomic trends, such as unemployment rates and property-specific factors such as rental rates, occupancy levels, LTV ratios and debt service coverage ratios (“DSCR”). In addition, the Company considers historical, current and projected delinquency rates and property values. Estimates of collectibility require the use of significant management judgment and include the probability and timing of borrower default and loss severity estimates. In addition, cash flow projections may change based upon new information about the borrower's ability to pay and/or the value of underlying collateral such as changes in projected property value estimates. For mortgage loans that are deemed impaired, a valuation allowance is established for the difference between the carrying amount and estimated fair value. The mortgage loan's estimated fair value is most frequently the Company's share of the fair value of the collateral but may also be the Company’s share of either (a) the present value of the expected future cash flows discounted at the loan’s effective interest rate or (b) the loan’s observable market price. A valuation allowance may be recorded for an individual loan or for a group of loans that have an LTV ratio of 90% or greater, a low DSCR or have other lower credit quality characteristics. Changes in valuation allowances are recorded in net realized capital gains and losses. Interest income on impaired loans is accrued to the extent it is deemed collectible and the borrowers continue to make payments under the original or restructured loan terms. The Company stops accruing interest income on loans when it is probable that the Company will not receive interest and principal payments according to the contractual terms of the loan agreement. The Company resumes accruing interest income when it determines that sufficient collateral exists to satisfy the full amount of the loan principal and interest payments and when it is probable cash will be received in the foreseeable future. Interest income on defaulted loans is recognized when received. As of June 30, 2019 , mortgage loans had an amortized cost of $3.6 billion and carrying value of $3.6 billion , with no valuation allowance. As of December 31, 2018 , mortgage loans had an amortized cost of $3.7 billion and carrying value of $3.7 billion, with a valuation allowance of $1 . As of June 30, 2019 , there were no mortgage loans that had a valuation allowance. As of December 31, 2018 , the carrying value of mortgage loans that had a valuation allowance was $23 . There were no mortgage loans held-for-sale as of June 30, 2019 or December 31, 2018 . As of June 30, 2019 , the Company had no mortgage loans that have had extensions or restructurings other than what is allowable under the original terms of the contract. The following table presents the activity within the Company’s valuation allowance for mortgage loans. These loans have been evaluated both individually and collectively for impairment. Loans evaluated collectively for impairment are immaterial. Valuation Allowance Activity 2019 2018 Balance, as of January 1 $ (1 ) $ (1 ) Reversals 1 — Deductions — — Balance, as of June 30 $ — $ (1 ) The weighted-average LTV ratio of the Company’s mortgage loan portfolio was 52% as of June 30, 2019 , while the weighted-average LTV ratio at origination of these loans was 61% . LTV ratios compare the loan amount to the value of the underlying property collateralizing the loan. The loan collateral values are updated no less than annually through reviews of the underlying properties. Factors considered in estimating property values include, among other things, actual and expected property cash flows, geographic market data and the ratio of the property's net operating income to its value. DSCR compares a property’s net operating income to the borrower’s principal and interest payments. As of June 30, 2019 and December 31, 2018 , the Company held no delinquent commercial mortgage loans past due by 90 days or more. Mortgage Loans Credit Quality June 30, 2019 December 31, 2018 Loan-to-value Carrying Value Avg. Debt-Service Coverage Ratio Carrying Value Avg. Debt-Service Coverage Ratio 65% - 80% 404 1.70x 386 1.60x Less than 65% 3,208 2.56x 3,318 2.59x Total mortgage loans $ 3,612 2.47x $ 3,704 2.49x Mortgage Loans by Region June 30, 2019 December 31, 2018 Carrying Value Percent of Total Carrying Value Percent of Total East North Central $ 250 6.9 % $ 250 6.8 % Middle Atlantic 268 7.4 % 270 7.3 % Mountain 33 0.9 % 30 0.8 % New England 346 9.7 % 330 8.9 % Pacific 884 24.5 % 917 24.8 % South Atlantic 742 20.5 % 712 19.2 % West North Central 121 3.3 % 148 4.0 % West South Central 407 11.3 % 420 11.3 % Other [1] 561 15.5 % 627 16.9 % Total mortgage loans $ 3,612 100.0 % $ 3,704 100.0 % [1] Primarily represents loans collateralized by multiple properties in various regions. Mortgage Loans by Property Type June 30, 2019 December 31, 2018 Carrying Value Percent of Total Carrying Percent of Total Commercial Industrial $ 1,000 27.7 % $ 1,108 29.9 % Multifamily 1,156 32.0 % 1,138 30.7 % Office 691 19.2 % 708 19.1 % Retail 409 11.3 % 392 10.6 % Single Family 81 2.2 % 82 2.2 % Other 275 7.6 % 276 7.5 % Total mortgage loans $ 3,612 100.0 % $ 3,704 100.0 % Mortgage Servicing The Company originates, sells and services commercial mortgage loans on behalf of third parties and recognizes servicing fee income over the period that services are performed. As of June 30, 2019 , under this program, the Company serviced mortgage loans with a total outstanding principal of $5.9 billion , of which $3.5 billion was serviced on behalf of third parties and $2.4 billion was retained and reported in total investments on the Company's Condensed Consolidated Balance Sheets . As of December 31, 2018 , the Company serviced mortgage loans with a total outstanding principal balance of $6.0 billion , of which $3.6 billion was serviced on behalf of third parties and $2.4 billion was retained and reported in total investments on the Company's Condensed Consolidated Balance Sheets. Servicing rights are carried at the lower of cost or fair value and were zero as of June 30, 2019 and December 31, 2018 , because servicing fees were market-level fees at origination and remain adequate to compensate the Company for servicing the loans. Variable Interest Entities The Company is engaged with various special purpose entities and other entities that are deemed to be VIEs primarily as an investor through normal investment activities but also as an investment manager. A VIE is an entity that either has investors that lack certain essential characteristics of a controlling financial interest, such as simple majority kick-out rights, or lacks sufficient funds to finance its own activities without financial support provided by other entities. The Company performs ongoing qualitative assessments of its VIEs to determine whether the Company has a controlling financial interest in the VIE and therefore is the primary beneficiary. The Company is deemed to have a controlling financial interest when it has both the ability to direct the activities that most significantly impact the economic performance of the VIE and the obligation to absorb losses or right to receive benefits from the VIE that could potentially be significant to the VIE. Based on the Company’s assessment, if it determines it is the primary beneficiary, the Company consolidates the VIE in the Company’s Condensed Consolidated Financial Statements. Consolidated VIEs As of June 30, 2019 and December 31, 2018 , the Company did not hold any securities for which it is the primary beneficiary. Non-consolidated VIEs The Company, through normal investment activities, makes passive investments in limited partnerships and other alternative investments. For these non-consolidated VIEs, the Company has determined it is not the primary beneficiary as it has no ability to direct activities that could significantly affect the economic performance of the investments. The Company’s maximum exposure to loss as of June 30, 2019 and December 31, 2018 was limited to the total carrying value of $1.1 billion and $1.0 billion , respectively, which are included in limited partnerships and other alternative investments in the Company's Condensed Consolidated Balance Sheets. As of June 30, 2019 and December 31, 2018 , the Company has outstanding commitments totaling $797 and $718 , respectively, whereby the Company is committed to fund these investments and may be called by the partnership during the commitment period to fund the purchase of new investments and partnership expenses. These investments are generally of a passive nature in that the Company does not take an active role in management. For further discussion of these investments, see Equity Method Investments within Note 6 - Investments of Notes to Consolidated Financial Statements included in the Company’s 2018 Form 10-K Annual Report. In addition, the Company also makes passive investments in structured securities issued by VIEs for which the Company is not the manager. These investments include ABS, CLOs, CMBS and RMBS and are reported in fixed maturities, available-for-sale, and fixed maturities, FVO, in the Company’s Condensed Consolidated Balance Sheets. The Company has not provided financial or other support with respect to these investments other than its original investment. For these investments, the Company determined it is not the primary beneficiary due to the relative size of the Company’s investment in comparison to the principal amount of the structured securities issued by the VIEs, the level of credit subordination which reduces the Company’s obligation to absorb losses or right to receive benefits and the Company’s inability to direct the activities that most significantly impact the economic performance of the VIEs. The Company’s maximum exposure to loss on these investments is limited to the amount of the Company’s investment. Securities Lending, Repurchase Agreements, and Other Collateral Transactions and Restricted Investments The Company enters into securities financing transactions as a way to earn additional income or manage liquidity, primarily through securities lending and repurchase agreements. Payables for Collateral on Investments June 30, 2019 December 31, 2018 Fair Value Fair Value Securities Lending Transactions: Gross amount of securities on loan $ 585 $ 820 Gross amount of associated liability for collateral received [1] $ 599 $ 840 Repurchase agreements: Gross amount of recognized liabilities for repurchase agreements $ 154 $ 72 Gross amount of collateral pledged related to repurchase agreements [2] $ 158 $ 73 Gross amount of recognized receivables for reverse repurchase agreements $ 54 $ 64 [1] Cash collateral received is reinvested in fixed maturities, AFS and short-term investments which are included in the Condensed Consolidated Balance Sheets. Amount includes additional securities collateral received of $18 and $3 which are excluded from the Company's Condensed Consolidated Balance Sheets as of June 30, 2019 and December 31, 2018 , respectively. [2] Collateral pledged is included within fixed maturities, AFS and short-term investments in the Company's Condensed Consolidated Balance Sheets. Securities Lending Under a securities lending program, the Company lends certain fixed maturities within the corporate, foreign government/government agencies, and municipal sectors as well as equity securities to qualifying third-party borrowers in return for collateral in the form of cash or securities. For domestic and non-domestic loaned securities, respectively, borrowers provide collateral of 102% and 105% of the fair value of the securities lent at the time of the loan. Borrowers will return the securities to the Company for cash or securities collateral at maturity dates generally of 90 days or less. Security collateral on deposit from counterparties in connection with securities lending transactions may not be sold or re-pledged, except in the event of default by the counterparty, and is not reflected on the Company’s Condensed Consolidated Balance Sheets. Additional collateral is obtained if the fair value of the collateral falls below 100% of the fair value of the loaned securities. The agreements are continuous and do not have stated maturity dates and provide the counterparty the right to sell or re-pledge the securities loaned. If cash, rather than securities, is received as collateral, the cash is typically invested in short-term investments or fixed maturities and is reported as an asset on the Company's Condensed Consolidated Balance Sheets. Income associated with securities lending transactions is reported as a component of net investment income in the Company’s Condensed Consolidated Statements of Operations. Repurchase Agreements From time to time, the Company enters into repurchase agreements to manage liquidity or to earn incremental income. A repurchase agreement is a transaction in which one party (transferor) agrees to sell securities to another party (transferee) in return for cash (or securities), with a simultaneous agreement to repurchase the same securities at a specified price at a later date. The maturity of these transactions is generally ninety days or less. Repurchase agreements include master netting provisions that provide both counterparties the right to offset claims and apply securities held by them with respect to their obligations in the event of a default. Although the Company has the contractual right to offset claims, the Company's current positions do not meet the specific conditions for net presentation. Under repurchase agreements, the Company transfers collateral of U.S. government and government agency securities and receives cash. For repurchase agreements, the Company obtains cash in an amount equal to at least 95% of the fair value of the securities transferred. The agreements require additional collateral to be transferred when necessary and provide the counterparty the right to sell or re-pledge the securities transferred. The cash received from the repurchase program is typically invested in short-term investments or fixed maturities and is reported as an asset on the Company's Condensed Consolidated Balance Sheets. The Company accounts for the repurchase agreements as collateralized borrowings. The securities transferred under repurchase agreements are included in fixed maturities, AFS with the obligation to repurchase those securities recorded in other liabilities on the Company's Condensed Consolidated Balance Sheets. From time to time, the Company enters into reverse repurchase agreements where the Company purchases securities and simultaneously agrees to resell the same or substantially the same securities. The maturity of these transactions is generally within one year. The agreements require additional collateral to be transferred to the Company when necessary and the Company has the right to sell or re-pledge the securities received. The Company accounts for reverse repurchase agreements as collateralized financing. The receivable for reverse repurchase agreements is included within short-term investments in the Company's Condensed Consolidated Balance Sheets. Other Collateral Transactions As of June 30, 2019 and December 31, 2018 , the Company pledged collateral of $36 and $47 , respectively, of U.S. government securities and municipal securities or cash primarily related to certain bank loan participations committed to through a limited partnership agreement. These amounts also include collateral related to letters of credit. For disclosure of collateral in support of derivative transactions, refer to the Derivative Collateral Arrangements section in Note 7 - Derivatives of Notes to Condensed Consolidated Financial Statements. For disclosure of collateral in support of credit facilities, refer to Note 10 - Debt of Notes to Condensed Consolidated Financial Statements. Other Restricted Investments The Company is required by law to deposit securities with government agencies in certain states in which it conducts business. As of June 30, 2019 and December 31, 2018 , the fair value of securities on deposit was $ 2.4 billion and $2.2 billion , respectively. In addition, as of June 30, 2019 , the Company held fixed maturities and short-term investments of $489 and $1 , respectively in trust for the benefit of syndicate policyholders and other investments of $49 primarily consisting of overseas deposits in various countries with Lloyd's to support underwriting activities in those countries. |
Derivative Instruments
Derivative Instruments | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives Instruments | 7 . DERIVATIVES The Company utilizes a variety of OTC, OTC-cleared and exchange traded derivative instruments as a part of its overall risk management strategy as well as to enter into replication transactions. Derivative instruments are used to manage risk associated with interest rate, equity market, credit spread, issuer default, price, and currency exchange rate risk or volatility. Replication transactions are used as an economical means to synthetically replicate the characteristics and performance of assets that are permissible investments under the Company’s investment policies. Strategies that Qualify for Hedge Accounting Some of the Company's derivatives satisfy hedge accounting requirements as outlined in Note 1 - Basis of Presentation and Significant Accounting Policies of Notes to Consolidated Financial Statements, included in The Hartford’s 2018 Form 10-K Annual Report. Typically, these hedging instruments include interest rate swaps and, to a lesser extent, foreign currency swaps where the terms or expected cash flows of the hedged item closely match the terms of the swap. The interest rate swaps are typically used to manage interest rate duration of certain fixed maturity securities. The hedge strategies by hedge accounting designation include: Cash Flow Hedges Interest rate swaps are predominantly used to manage portfolio duration and better match cash receipts from assets with cash disbursements required to fund liabilities. These derivatives primarily convert interest receipts on floating-rate fixed maturity securities to fixed rates. The Company has also entered into interest rate swaps to convert the variable interest payments on the 3 month Libor + 2.125% junior subordinated debt to fixed interest payments. For further information, see the Junior Subordinated Debentures section within Note 13 - Debt of Notes to the Consolidated Financial Statements, included in The Hartford's 2018 Form 10-K Annual Report. Foreign currency swaps are used to convert non-U.S. denominated cash flows related to certain investment receipts to U.S. dollars in order to reduce cash flow fluctuations due to changes in currency rates. The Company also previously entered into forward starting swap agreements to hedge the interest rate exposure related to the future purchase of fixed-rate securities, primarily to hedge interest rate risk inherent in the assumptions used to price certain group benefits liabilities. Non-qualifying Strategies Derivative relationships that do not qualify for hedge accounting (“non-qualifying strategies”) primarily include hedging and replication strategies that utilize credit default swaps. In addition, hedges of interest rate, foreign currency and equity risk of certain fixed maturities and equities do not qualify for hedge accounting. The non-qualifying strategies include: Credit Contracts Credit default swaps are used to purchase credit protection on an individual entity or referenced index to economically hedge against default risk and credit-related changes in the value of fixed maturity securities. Credit default swaps are also used to assume credit risk related to an individual entity or referenced index as a part of replication transactions. These contracts require the Company to pay or receive a periodic fee in exchange for compensation from the counterparty should the referenced security issuers experience a credit event, as defined in the contract. The Company also enters into credit default swaps to terminate existing credit default swaps, thereby offsetting the changes in value of the original swap going forward. Interest Rate Swaps, Swaptions and Futures The Company uses interest rate swaps, swaptions and futures to manage interest rate duration between assets and liabilities in certain investment portfolios. In addition, the Company enters into interest rate swaps to terminate existing swaps, thereby offsetting the changes in value of the original swap going forward. As of June 30, 2019 and December 31, 2018 , the notional amount of interest rate swaps in offsetting relationships was $7.6 billion and $7.1 billion , respectively. Foreign Currency Swaps and Forwards The Company enters into foreign currency swaps to convert the foreign currency exposures of certain non-U.S. dollar denominated fixed maturity investments to U.S. dollars. The Company may at times enter into foreign currency forwards to hedge non-U.S. dollar denominated cash or equity securities. Equity Index Options The Company enters into equity index options to hedge the impact of a decline in the equity markets on the investment portfolio. The Company also enters into call options on equity securities to generate additional return. Derivative Balance Sheet Classification For reporting purposes, the Company has elected to offset within assets or liabilities based upon the net of the fair value amounts, income accruals, and related cash collateral receivables and payables of OTC derivative instruments executed in a legal entity and with the same counterparty under a master netting agreement, which provides the Company with the legal right of offset. The following fair value amounts do not include income accruals or related cash collateral receivables and payables, which are netted with derivative fair value amounts to determine balance sheet presentation. The Company’s derivative instruments are held for risk management purposes, unless otherwise noted in the following table. The notional amount of derivative contracts represents the basis upon which pay or receive amounts are calculated and is presented in the table to quantify the volume of the Company’s derivative activity. Notional amounts are not necessarily reflective of credit risk. Derivative Balance Sheet Presentation Net Derivatives Asset Derivatives Liability Derivatives Notional Amount Fair Value Fair Value Fair Value Hedge Designation/ Derivative Type Jun. 30, 2019 Dec. 31, 2018 Jun. 30, 2019 Dec. 31, 2018 Jun. 30, 2019 Dec. 31, 2018 Jun. 30, 2019 Dec. 31, 2018 Cash flow hedges Interest rate swaps $ 2,040 $ 2,040 $ — $ 1 $ — $ 2 $ — $ (1 ) Foreign currency swaps 220 153 (3 ) (6 ) 4 2 (7 ) (8 ) Total cash flow hedges 2,260 2,193 (3 ) (5 ) 4 4 (7 ) (9 ) Non-qualifying strategies Interest rate contracts Interest rate swaps and futures 8,338 8,451 (62 ) (62 ) 3 8 (65 ) (70 ) Foreign exchange contracts Foreign currency swaps and forwards 389 287 (2 ) (1 ) — — (2 ) (1 ) Credit contracts Credit derivatives that purchase credit protection 115 6 (1 ) — — — (1 ) — Credit derivatives that assume credit risk [1] 514 1,102 11 3 11 8 — (5 ) Credit derivatives in offsetting positions 35 41 — — 6 6 (6 ) (6 ) Equity contracts Equity index swaps and options 710 211 (3 ) 4 6 5 (9 ) (1 ) Total non-qualifying strategies 10,101 10,098 (57 ) (56 ) 26 27 (83 ) (83 ) Total cash flow hedges and non-qualifying strategies $ 12,361 $ 12,291 $ (60 ) $ (61 ) $ 30 $ 31 $ (90 ) $ (92 ) Balance Sheet Location Fixed maturities, available-for-sale $ 153 $ 153 $ — $ — $ — $ — $ — $ — Other investments 1,353 9,864 11 7 12 23 (1 ) (16 ) Other liabilities 10,855 2,274 (71 ) (68 ) 18 8 (89 ) (76 ) Total derivatives $ 12,361 $ 12,291 $ (60 ) $ (61 ) $ 30 $ 31 $ (90 ) $ (92 ) [1] The derivative instruments related to this strategy are held for other investment purposes. Offsetting of Derivative Assets/Liabilities The following tables present the gross fair value amounts, the amounts offset, and net position of derivative instruments eligible for offset in the Company's Condensed Consolidated Balance Sheets. Amounts offset include fair value amounts, income accruals and related cash collateral receivables and payables associated with derivative instruments that are traded under a common master netting agreement, as described in the preceding discussion. Also included in the tables are financial collateral receivables and payables, which are contractually permitted to be offset upon an event of default, although are disallowed for offsetting under U.S. GAAP. Offsetting Derivative Assets and Liabilities (i) (ii) (iii) = (i) - (ii) (iv) (v) = (iii) - (iv) Net Amounts Presented in the Statement of Financial Position Collateral Disallowed for Offset in the Statement of Financial Position Gross Amounts of Recognized Assets (Liabilities) Gross Amounts Offset in the Statement of Financial Position Derivative Assets [1] (Liabilities) [2] Accrued Interest and Cash Collateral (Received) [3] Pledged [2] Financial Collateral (Received) Pledged [4] Net Amount As of June 30, 2019 Other investments $ 30 $ 26 $ 11 $ (7 ) $ 1 $ 3 Other liabilities $ (90 ) $ (15 ) $ (71 ) $ (4 ) $ (68 ) $ (7 ) As of December 31, 2018 Other investments $ 31 $ 26 $ 7 $ (2 ) $ 2 $ 3 Other liabilities $ (92 ) $ (20 ) $ (68 ) $ (4 ) $ (65 ) $ (7 ) [1] Included in other investments in the Company's Condensed Consolidated Balance Sheets. [2] Included in other liabilities in the Company's Condensed Consolidated Balance Sheets and is limited to the net derivative payable associated with each counterparty. [3] Included in other investments in the Company's Condensed Consolidated Balance Sheets and is limited to the net derivative receivable associated with each counterparty. [4] Excludes collateral associated with exchange-traded derivative instruments. Cash Flow Hedges For derivative instruments that are designated and qualify as cash flow hedges, the gain or loss on the derivative is reported as a component of OCI and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. All components of each derivative’s gain or loss were included in the assessment of hedge effectiveness. Gain (Loss) Recognized in OCI Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Interest rate swaps $ 13 $ (2 ) $ 20 $ (16 ) Foreign currency swaps 4 8 4 1 Total $ 17 $ 6 $ 24 $ (15 ) Gain (Loss) Reclassified from AOCI into Income Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Net Realized Capital Gain/(Loss) Net Investment Income Interest Expense Net Realized Capital Gain/(Loss) Net Investment Income Interest Expense Net Realized Capital Gain/(Loss) Net Investment Income Interest Expense Net Realized Capital Gain/(Loss) Net Investment Income Interest Expense Interest rate swaps $ 2 $ — $ 1 $ — $ 9 $ — $ 2 $ — $ 1 $ 1 $ 17 $ — Foreign currency swaps — — — — — — — 1 — — — — Total $ 2 $ — $ 1 $ — $ 9 $ — $ 2 $ 1 $ 1 $ 1 $ 17 $ — Total amounts presented on the Condensed Consolidated Statement of Operations $ 80 $ 488 $ 63 $ 52 $ 428 $ 79 $ 243 $ 958 $ 127 $ 22 $ 879 $ 159 As of June 30, 2019 , the Company had $18 of before tax deferred net gains on derivative instruments recorded in AOCI that are expected to be reclassified to earnings during the next twelve months. This expectation is based on the anticipated interest payments on hedged investments in fixed maturity securities that will occur over the next twelve months, at which time the Company will recognize the deferred net gains (losses) as an adjustment to net investment income over the term of the investment cash flows. During the three and six months ended June 30, 2019 and 2018 , the Company had no net reclassifications from AOCI to earnings resulting from the discontinuance of cash-flow hedges due to forecasted transactions that were no longer probable of occurring. Non-qualifying Strategies For non-qualifying strategies, including embedded derivatives that are required to be bifurcated from their host contracts and accounted for as derivatives, the gain or loss on the derivative is recognized currently in earnings within net realized capital gains (losses). Non-qualifying Strategies Recognized within Net Realized Capital Gains (Losses) Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Foreign exchange contracts Foreign currency swaps and forwards $ (1 ) $ 4 $ — $ 1 Other non-qualifying derivatives Interest rate contracts Interest rate swaps, swaptions, and futures (7 ) 8 (15 ) 6 Credit contracts Credit derivatives that purchase credit protection (1 ) 1 — — Credit derivatives that assume credit risk 6 — 27 (8 ) Equity contracts Equity index swaps and options (4 ) (1 ) (4 ) — Total other non-qualifying derivatives (6 ) 8 8 (2 ) Total [1] $ (7 ) $ 12 $ 8 $ (1 ) [1] Excludes investments that contain an embedded credit derivative for which the Company has elected the fair value option. For further discussion, see the Fair Value Option section in Note 5 - Fair Value Measurements of Notes to Condensed Consolidated Financial Statements. Credit Risk Assumed through Credit Derivatives The Company enters into credit default swaps that assume credit risk of a single entity or referenced index in order to synthetically replicate investment transactions that are permissible under the Company's investment policies. The Company will receive periodic payments based on an agreed upon rate and notional amount and will only make a payment if there is a credit event. A credit event payment will typically be equal to the notional value of the swap contract less the value of the referenced security issuer’s debt obligation after the occurrence of the credit event. A credit event is generally defined as a default on contractually obligated interest or principal payments or bankruptcy of the referenced entity. The credit default swaps in which the Company assumes credit risk primarily reference investment grade single corporate issuers and baskets, which include standard diversified portfolios of corporate and CMBS issuers. The diversified portfolios of corporate issuers are established within sector concentration limits and may be divided into tranches that possess different credit ratings. Credit Risk Assumed Derivatives by Type Underlying Referenced Credit Obligation(s) [1] Notional Amount [2] Fair Value Weighted Average Years to Maturity Type Average Credit Rating Offsetting Notional Amount [3] Offsetting Fair Value [3] As of June 30, 2019 Single name credit default swaps Investment grade risk exposure $ 165 $ 4 5 years Corporate Credit A- $ — $ — Basket credit default swaps [4] Investment grade risk exposure 350 7 5 years Corporate Credit BBB+ — — Investment grade risk exposure 1 — Less than 1 year CMBS Credit A 1 — Below investment grade risk exposure 16 (6 ) Less than 1 year CMBS Credit CCC 17 6 Total [5] $ 532 $ 5 $ 18 $ 6 As of December 31, 2018 Single name credit default swaps Investment grade risk exposure $ 169 $ 2 4 years Corporate Credit/ A $ — $ — Basket credit default swaps [4] Investment grade risk exposure 799 (1 ) 6 years Corporate Credit BBB+ — — Below investment grade risk exposure 125 2 5 years Corporate Credit B+ — — Investment grade risk exposure 11 — 5 years CMBS Credit A- 2 — Below investment grade risk exposure 19 (6 ) Less than 1 year CMBS Credit CCC 19 6 Total [5] $ 1,123 $ (3 ) $ 21 $ 6 [1] The average credit ratings are based on availability and are generally the midpoint of the available ratings among Moody’s, S&P and Fitch. If no rating is available from a rating agency, then an internally developed rating is used. [2] Notional amount is equal to the maximum potential future loss amount. These derivatives are governed by agreements and applicable law, which include collateral posting requirements. There is no additional specific collateral related to these contracts or recourse provisions included in the contracts to offset losses. [3] The Company has entered into offsetting credit default swaps to terminate certain existing credit default swaps, thereby offsetting the future changes in value of, or losses paid related to, the original swap. [4] Comprised of swaps of standard market indices of diversified portfolios of corporate and CMBS issuers referenced through credit default swaps. These swaps are subsequently valued based upon the observable standard market index. [5] Excludes investments that contain an embedded credit derivative for which the Company has elected the fair value option. For further discussion, see the Fair Value Option section in Note 5 - Fair Value Measurements of Notes to Condensed Consolidated Financial Statements. Derivative Collateral Arrangements The Company enters into various collateral arrangements in connection with its derivative instruments, which require both the pledging and accepting of collateral. As of June 30, 2019 and December 31, 2018 , the Company pledged cash collateral with a fair value of less than $1 and $4 , respectively, associated with derivative instruments. The collateral receivable has been recorded in other assets or other liabilities on the Company's Condensed Consolidated Balance Sheets as determined by the Company's election to offset on the balance sheet. As of June 30, 2019 and December 31, 2018 , the Company also pledged securities collateral associated with derivative instruments with a fair value of $73 and $67 , respectively, which have been included in fixed maturities on the Company's Condensed Consolidated Balance Sheets. The counterparties generally have the right to sell or re-pledge these securities. In addition, as of June 30, 2019 and December 31, 2018 , the Company has pledged initial margin of securities related to OTC-cleared and exchange traded derivatives with a fair value of $85 and $89 , respectively, which are included within fixed maturities on the Company's Condensed Consolidated Balance Sheets. As of June 30, 2019 and December 31, 2018 , the Company accepted cash collateral associated with derivative instruments of $11 and $9 , respectively, which was invested and recorded in the Company's Condensed Consolidated Balance Sheets in fixed maturities and short-term investments with corresponding amounts recorded in other investments or other liabilities as determined by the Company's election to offset on the balance sheet. The Company also accepted securities collateral as of June 30, 2019 and December 31, 2018 , with a fair value of $2 and $5 , respectively, which the Company has the right to sell or repledge. As of June 30, 2019 and December 31, 2018 , the Company had no repledged securities. During the same periods, the Company did not sell any securities held as collateral . As of June 30, 2019 and December 31, 2018 , non-cash collateral accepted was held in separate custodial accounts and was not included in the Company’s Consolidated Balance Sheets . |
Reserve for Unpaid Losses and L
Reserve for Unpaid Losses and Loss Adjustment Expenses | 6 Months Ended |
Jun. 30, 2019 | |
Liability for Unpaid Claims and Claims Adjustment Expense, Activity in Liability [Abstract] | |
Reserve for Unpaid Losses and Loss Adjustment Expenses | Property and Casualty Insurance Products Rollforward of Liabilities for Unpaid Losses and Loss Adjustment Expenses For the six months ended June 30, 2019 2018 Beginning liabilities for unpaid losses and loss adjustment expenses, gross $ 24,584 $ 23,775 Reinsurance and other recoverables 4,232 3,957 Beginning liabilities for unpaid losses and loss adjustment expenses, net 20,352 19,818 Navigators Group acquisition 2,001 — Provision for unpaid losses and loss adjustment expenses Current accident year 3,475 3,362 Prior accident year development 24 (79 ) Total provision for unpaid losses and loss adjustment expenses 3,499 3,283 Less payments Current accident year 848 934 Prior accident years 2,381 2,308 Total payments 3,229 3,242 Ending liabilities for unpaid losses and loss adjustment expenses, net 22,623 19,859 Reinsurance and other recoverables 5,125 3,772 Ending liabilities for unpaid losses and loss adjustment expenses, gross $ 27,748 $ 23,631 Unfavorable (Favorable) Prior Accident Year Development For the six months ended June 30, 2019 2018 Workers’ compensation $ (50 ) $ (73 ) Workers’ compensation discount accretion 17 20 General liability 43 28 Marine 10 — Package business (9 ) (7 ) Commercial property (15 ) (12 ) Professional liability 33 8 Bond — — Assumed Reinsurance 3 — Automobile liability - Commercial Lines 2 (10 ) Automobile liability - Personal Lines (5 ) — Homeowners 1 (13 ) Net asbestos reserves — — Net environmental reserves — — Catastrophes (22 ) (34 ) Uncollectible reinsurance — 11 Other reserve re-estimates, net 16 3 Total prior accident year development $ 24 $ (79 ) Re-estimates of prior accident year reserves for the six months ended June 30, 2019 Workers’ compensation reserves were reduced, principally in small commercial driven by lower than previously estimated claim severity for the 2014 through 2017 accident years. General liability reserves were increased, primarily due to reserve increases in small commercial for accident years 2017 and 2018 due to higher frequency of high-severity bodily injury claims, as well as increased estimated severity on the acquired Navigators book of business related to U.S. construction, premises liability, products liability and excess casualty, mostly related to accident years 2014 to 2018. Package business reserves were decreased, primarily due to favorable emergence on property claims related to accident years 2016 through 2018. Commercial property reserves were decreased, principally due to favorable emergence of reported losses, including on the acquired Navigators Group book of business related to offshore energy in accident years 2017 to 2018 and construction engineering across accident years 2015 to 2018. Professional liability reserves were increased, primarily due to large loss activity, including wrongful termination and discrimination claims, in accident years 2017 and 2018 and increased estimated frequency and severity of directors’ and officers’ reserves on the Navigators Group book of business, principally for the 2014 to 2018 accident years. Marine reserves were increased, principally related to pollution exposure from the 1980s and 1990s related to the Navigators Group book of business. Automobile liability reserves were reduced, primarily driven by the emergence of lower estimated severity in personal automobile liability for accident year 2017. Catastrophes reserves were reduced, primarily as a result of lower estimated net losses from 2017 hurricanes Harvey and Irma. Re-estimates of prior accident year reserves for the six months ended June 30, 2018 Workers’ compensation reserves were reduced in small commercial and middle market, primarily for accident years 2011 to 2015, as both claim frequency and medical claim severity have emerged favorably compared to previous reserve estimates. General liability reserves were increased, primarily due to an increase in reserves for higher hazard general liability exposures in middle market for accident years 2009 to 2017, partially offset by a decrease in reserves for other lines within middle market, including premises and operations, umbrella and products liability, principally for accident years 2015 and prior. Contributing to the increase in reserves for higher hazard general liability exposures was an increase in large losses and, in more recent accident years, an increase in claim frequency. Contributing to the reduction in reserves for other middle market lines were more favorable outcomes due to initiatives to reduce legal expenses. In addition, reserve increases for claims with lead paint exposure were offset by reserve decreases for other mass torts and extra-contractual liability claims. Commercial property reserves were r educed, driven by an increase in estimated reinsurance recoverables on middle market property losses from the 2017 accident year. Automobile liability reserves were r educed, primarily driven by reduced estimates of loss adjustment expenses in small commercial for recent accident years. Homeowners reserves were reduced, primarily in accident years 2013 to 2017, driven by lower than expected severity across multiple perils. Catastrophe reserves were r educed, primarily as a result of lower estimated net losses from 2017 catastrophes, principally related to hurricanes Harvey and Irma. Before reinsurance, estimated losses for 2017 catastrophe events decreased by $ 123 in the six months ended June 30, 2018, resulting in a decrease in reinsurance recoverables of $ 90 as the Company no longer expects to recover under the 2017 Property Aggregate reinsurance treaty as aggregate ultimate losses for 2017 catastrophe events are now projected to be less than $ 850 . Group Life, Disability and Accident Products Rollforward of Liabilities for Unpaid Losses and Loss Adjustment Expenses For the six months ended June 30, 2019 2018 Beginning liabilities for unpaid losses and loss adjustment expenses, gross $ 8,445 $ 8,512 Reinsurance recoverables 239 209 Beginning liabilities for unpaid losses and loss adjustment expenses, net 8,206 8,303 Provision for unpaid losses and loss adjustment expenses Current incurral year 2,269 2,317 Prior year's discount accretion 117 120 Prior incurral year development [1] (206 ) (217 ) Total provision for unpaid losses and loss adjustment expenses [2] 2,180 2,220 Less: payments Current incurral year 922 974 Prior incurral years 1,342 1,335 Total payments 2,264 2,309 Ending liabilities for unpaid losses and loss adjustment expenses, net 8,122 8,214 Reinsurance recoverables 234 235 Ending liabilities for unpaid losses and loss adjustment expenses, gross $ 8,356 $ 8,449 [1] Prior incurral year development represents the change in estimated ultimate incurred losses and loss adjustment expenses for prior incurral years on a discounted basis. [2] Includes unallocated loss adjustment expenses of $85 for the six months ended June 30, 2019 and 2018 that are recorded in insurance operating costs and other expenses in the Condensed Consolidated Statements of Operations. Re-estimates of prior incurral years reserves for the six months ended June 30, 2019 Group disability- Prior period reserve estimates decreased by approximately $ 175 largely driven by group long-term disability claim incidence lower than prior assumptions, as well as claim recoveries and Social Security Disability approvals higher than prior reserve assumptions. New York paid family leave also experienced favorable claim emergence compared to year-end estimates. Group life and accident (including group life premium waiver)- Prior period reserve estimates decreased by approximately $ 25 largely driven by lower-than-previously expected claim incidence in group life premium waiver. Re-estimates of prior incurral years reserves for the six months ended June 30, 2018 Group disability- Prior period reserve estimates decreased by approximately $150 largely driven by group long-term disability claim recoveries higher than prior reserve assumptions and claim incidence lower than prior assumptions. Short-term disability has also experienced favorable claim recoveries. Group life and accident (including group life premium waiver)- Prior period reserve estimates decreased by approximately $65 largely driven by lower-than-previously expected claim incidence inclusive of group life, group life premium waiver, and group accidental death & dismemberment. 9 . RESERVE FOR FUTURE POLICY BENEFITS Changes in Reserves for Future Policy Benefits [1] Liability balance, as of January 1, 2019 $ 642 Incurred 44 Paid (55 ) Change in unrealized investment gains and losses 13 Liability balance, as of June 30, 2019 $ 644 Reinsurance recoverable asset, as of January 1, 2019 $ 27 Incurred — Paid — Reinsurance recoverable asset, as of June 30, 2019 $ 27 Liability balance, as of January 1, 2018 $ 713 Incurred 14 Paid (19 ) Change in unrealized investment gains and losses (40 ) Liability balance, as of June 30, 2018 $ 668 Reinsurance recoverable asset, as of January 1, 2018 $ 26 Incurred 9 Paid — Reinsurance recoverable asset, as of June 30, 2018 $ 35 [1]Reserves for future policy benefits includes paid-up life insurance and whole-life policies resulting from conversion from group life policies included within the Group Benefits segment and reserves for run-off structured settlement and terminal funding agreement liabilities which are in the Corporate category. |
Reserve for Future Policy Benef
Reserve for Future Policy Benefits | 6 Months Ended |
Jun. 30, 2019 | |
Insurance Loss Reserves [Abstract] | |
Reserve for Future Policy Benefits | Property and Casualty Insurance Products Rollforward of Liabilities for Unpaid Losses and Loss Adjustment Expenses For the six months ended June 30, 2019 2018 Beginning liabilities for unpaid losses and loss adjustment expenses, gross $ 24,584 $ 23,775 Reinsurance and other recoverables 4,232 3,957 Beginning liabilities for unpaid losses and loss adjustment expenses, net 20,352 19,818 Navigators Group acquisition 2,001 — Provision for unpaid losses and loss adjustment expenses Current accident year 3,475 3,362 Prior accident year development 24 (79 ) Total provision for unpaid losses and loss adjustment expenses 3,499 3,283 Less payments Current accident year 848 934 Prior accident years 2,381 2,308 Total payments 3,229 3,242 Ending liabilities for unpaid losses and loss adjustment expenses, net 22,623 19,859 Reinsurance and other recoverables 5,125 3,772 Ending liabilities for unpaid losses and loss adjustment expenses, gross $ 27,748 $ 23,631 Unfavorable (Favorable) Prior Accident Year Development For the six months ended June 30, 2019 2018 Workers’ compensation $ (50 ) $ (73 ) Workers’ compensation discount accretion 17 20 General liability 43 28 Marine 10 — Package business (9 ) (7 ) Commercial property (15 ) (12 ) Professional liability 33 8 Bond — — Assumed Reinsurance 3 — Automobile liability - Commercial Lines 2 (10 ) Automobile liability - Personal Lines (5 ) — Homeowners 1 (13 ) Net asbestos reserves — — Net environmental reserves — — Catastrophes (22 ) (34 ) Uncollectible reinsurance — 11 Other reserve re-estimates, net 16 3 Total prior accident year development $ 24 $ (79 ) Re-estimates of prior accident year reserves for the six months ended June 30, 2019 Workers’ compensation reserves were reduced, principally in small commercial driven by lower than previously estimated claim severity for the 2014 through 2017 accident years. General liability reserves were increased, primarily due to reserve increases in small commercial for accident years 2017 and 2018 due to higher frequency of high-severity bodily injury claims, as well as increased estimated severity on the acquired Navigators book of business related to U.S. construction, premises liability, products liability and excess casualty, mostly related to accident years 2014 to 2018. Package business reserves were decreased, primarily due to favorable emergence on property claims related to accident years 2016 through 2018. Commercial property reserves were decreased, principally due to favorable emergence of reported losses, including on the acquired Navigators Group book of business related to offshore energy in accident years 2017 to 2018 and construction engineering across accident years 2015 to 2018. Professional liability reserves were increased, primarily due to large loss activity, including wrongful termination and discrimination claims, in accident years 2017 and 2018 and increased estimated frequency and severity of directors’ and officers’ reserves on the Navigators Group book of business, principally for the 2014 to 2018 accident years. Marine reserves were increased, principally related to pollution exposure from the 1980s and 1990s related to the Navigators Group book of business. Automobile liability reserves were reduced, primarily driven by the emergence of lower estimated severity in personal automobile liability for accident year 2017. Catastrophes reserves were reduced, primarily as a result of lower estimated net losses from 2017 hurricanes Harvey and Irma. Re-estimates of prior accident year reserves for the six months ended June 30, 2018 Workers’ compensation reserves were reduced in small commercial and middle market, primarily for accident years 2011 to 2015, as both claim frequency and medical claim severity have emerged favorably compared to previous reserve estimates. General liability reserves were increased, primarily due to an increase in reserves for higher hazard general liability exposures in middle market for accident years 2009 to 2017, partially offset by a decrease in reserves for other lines within middle market, including premises and operations, umbrella and products liability, principally for accident years 2015 and prior. Contributing to the increase in reserves for higher hazard general liability exposures was an increase in large losses and, in more recent accident years, an increase in claim frequency. Contributing to the reduction in reserves for other middle market lines were more favorable outcomes due to initiatives to reduce legal expenses. In addition, reserve increases for claims with lead paint exposure were offset by reserve decreases for other mass torts and extra-contractual liability claims. Commercial property reserves were r educed, driven by an increase in estimated reinsurance recoverables on middle market property losses from the 2017 accident year. Automobile liability reserves were r educed, primarily driven by reduced estimates of loss adjustment expenses in small commercial for recent accident years. Homeowners reserves were reduced, primarily in accident years 2013 to 2017, driven by lower than expected severity across multiple perils. Catastrophe reserves were r educed, primarily as a result of lower estimated net losses from 2017 catastrophes, principally related to hurricanes Harvey and Irma. Before reinsurance, estimated losses for 2017 catastrophe events decreased by $ 123 in the six months ended June 30, 2018, resulting in a decrease in reinsurance recoverables of $ 90 as the Company no longer expects to recover under the 2017 Property Aggregate reinsurance treaty as aggregate ultimate losses for 2017 catastrophe events are now projected to be less than $ 850 . Group Life, Disability and Accident Products Rollforward of Liabilities for Unpaid Losses and Loss Adjustment Expenses For the six months ended June 30, 2019 2018 Beginning liabilities for unpaid losses and loss adjustment expenses, gross $ 8,445 $ 8,512 Reinsurance recoverables 239 209 Beginning liabilities for unpaid losses and loss adjustment expenses, net 8,206 8,303 Provision for unpaid losses and loss adjustment expenses Current incurral year 2,269 2,317 Prior year's discount accretion 117 120 Prior incurral year development [1] (206 ) (217 ) Total provision for unpaid losses and loss adjustment expenses [2] 2,180 2,220 Less: payments Current incurral year 922 974 Prior incurral years 1,342 1,335 Total payments 2,264 2,309 Ending liabilities for unpaid losses and loss adjustment expenses, net 8,122 8,214 Reinsurance recoverables 234 235 Ending liabilities for unpaid losses and loss adjustment expenses, gross $ 8,356 $ 8,449 [1] Prior incurral year development represents the change in estimated ultimate incurred losses and loss adjustment expenses for prior incurral years on a discounted basis. [2] Includes unallocated loss adjustment expenses of $85 for the six months ended June 30, 2019 and 2018 that are recorded in insurance operating costs and other expenses in the Condensed Consolidated Statements of Operations. Re-estimates of prior incurral years reserves for the six months ended June 30, 2019 Group disability- Prior period reserve estimates decreased by approximately $ 175 largely driven by group long-term disability claim incidence lower than prior assumptions, as well as claim recoveries and Social Security Disability approvals higher than prior reserve assumptions. New York paid family leave also experienced favorable claim emergence compared to year-end estimates. Group life and accident (including group life premium waiver)- Prior period reserve estimates decreased by approximately $ 25 largely driven by lower-than-previously expected claim incidence in group life premium waiver. Re-estimates of prior incurral years reserves for the six months ended June 30, 2018 Group disability- Prior period reserve estimates decreased by approximately $150 largely driven by group long-term disability claim recoveries higher than prior reserve assumptions and claim incidence lower than prior assumptions. Short-term disability has also experienced favorable claim recoveries. Group life and accident (including group life premium waiver)- Prior period reserve estimates decreased by approximately $65 largely driven by lower-than-previously expected claim incidence inclusive of group life, group life premium waiver, and group accidental death & dismemberment. 9 . RESERVE FOR FUTURE POLICY BENEFITS Changes in Reserves for Future Policy Benefits [1] Liability balance, as of January 1, 2019 $ 642 Incurred 44 Paid (55 ) Change in unrealized investment gains and losses 13 Liability balance, as of June 30, 2019 $ 644 Reinsurance recoverable asset, as of January 1, 2019 $ 27 Incurred — Paid — Reinsurance recoverable asset, as of June 30, 2019 $ 27 Liability balance, as of January 1, 2018 $ 713 Incurred 14 Paid (19 ) Change in unrealized investment gains and losses (40 ) Liability balance, as of June 30, 2018 $ 668 Reinsurance recoverable asset, as of January 1, 2018 $ 26 Incurred 9 Paid — Reinsurance recoverable asset, as of June 30, 2018 $ 35 [1]Reserves for future policy benefits includes paid-up life insurance and whole-life policies resulting from conversion from group life policies included within the Group Benefits segment and reserves for run-off structured settlement and terminal funding agreement liabilities which are in the Corporate category. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt | 10 . DEBT Senior Notes On January 15, 2019, The Hartford repaid at maturity the $413 principal amount of its 6.0% senior notes. In the Navigators Group acquisition, the Company assumed $265 par value 5.75% Senior notes due on October 15, 2023 with a fair value of $284 as of the acquisition date. The effective interest rate on the 5.75% Senior notes is approximately 4.00% . Interest is payable each April 15 and October 15. The interest rate payable on the 5.75% Senior notes is subject to a tiered adjustment based on the Navigators Group’s debt rating triggering if Navigators Group's rating falls to below investment grade. The Navigators Group, at its option, can redeem the 5.75% Senior Notes at any time, in whole or in part, at a redemption price equal to the greater of 100% of the principal amount being redeemed or a make-whole amount based on a comparable maturity U.S. Treasury plus 50 basis points, plus any accrued and unpaid interest. Shelf Registrations On May 17, 2019, the Company filed with the Securities and Exchange Commission (the “SEC”) an automatic shelf registration statement (Registration No. 333-231592) for the potential offering and sale of debt and equity securities. The registration statement allows for the following types of securities to be offered: debt securities, junior subordinated debt securities, guarantees, preferred stock, common stock, depositary shares, warrants, stock purchase contracts, and stock purchase units. In that The Hartford is a well-known seasoned issuer, as defined in Rule 405 under the Securities Act of 1933, the registration statement went effective immediately upon filing and The Hartford may offer and sell an unlimited amount of securities under the registration statement during the three -year life of the registration statement. Lloyd's Letter of Credit Facilities As a result of the acquisition of Navigators Group, The Hartford assumed three existing letter of credit facility agreements: the Club Facility, the Bilateral Facility, and the Australian Dollar Facility. Letters of credit under the Club and Bilateral Facilities are used to provide a portion of the capital requirements at Lloyd's. As of June 30, 2019, uncollateralized letters of credit with an aggregate face amount of $ 165 and £60 million were outstanding under the Club Facility, $8 was outstanding under the Bilateral Facility and $1 of cash collateral was posted at Lloyd's. The Bilateral Facility has unused capacity of $17 for issuance of additional letters of credit. Principally as a result of second quarter loss on reinsurance, reserve increases and other adjustments upon the acquisition, Navigators Group is not in compliance with certain financial covenants regarding tangible net worth and Funds at Lloyd’s (“FAL”) as set forth in the Club Facility and Bilateral Facility. The Company is in discussions with the participating banks to amend the covenants, and has obtained a temporary waiver. As of June 30, 2019, letters of credit with an aggregate face amount of 24 Australian Dollars were outstanding under the Australian Dollar Facility, |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 11 . INCOME TAXES Income Tax Expense Income Tax Rate Reconciliation Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Tax provision at U.S. federal statutory rate $ 95 $ 112 $ 258 $ 221 Tax-exempt interest (14 ) (17 ) (29 ) (34 ) Executive compensation 1 3 5 7 Stock-based compensation (1 ) — (4 ) (2 ) Tax Reform — 5 — 2 Other 3 — (1 ) — Provision for income taxes $ 84 $ 103 $ 229 $ 194 In addition to the effect of tax-exempt interest, the Company's effective tax rate for the three and six months ended June 30, 2019 reflects a federal income tax expense of $ 1 and $5 , respectively, related to non-deductible executive compensation and a benefit of $ 1 and $4 , respectively, related to a deduction for stock-based compensation that vested at a fair value per share greater than the fair value on the date of grant. Uncertain Tax Positions Rollforward of Unrecognized Tax Benefits Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Balance, beginning of period $ 14 $ 9 $ 14 $ 9 Gross increases - tax positions in prior period — — — — Gross decreases - tax positions in prior period — — — — Balance, end of period $ 14 $ 9 $ 14 $ 9 The entire amount of unrecognized tax benefits, if recognized, would affect the effective tax rate in the period of the release. Other Tax Matters As of June 30, 2019 the Company had alternative minimum tax (AMT) credit carryovers of $ 835 which are reflected as a current income tax receivable within other assets in the accompanying Condensed Consolidated Balance Sheets. AMT credits may be used to offset a regular tax liability for any taxable year beginning after December 31, 2017, and are refundable at an amount equal to 50 percent of the excess of the minimum tax credit for the taxable year over the amount of credit allowable for the year against regular tax liability. Any remaining credits not used against regular tax liability are refundable in the 2021 tax year to be realized in 2022. For the three and six months ended June 30, 2019, the Company offset $4 and $6 of regular tax liability with AMT credits. The Company had net operating loss (NOL) carryforwards in the United States and the United Kingdom for which future tax benefits of $352 and $2 have been recognized and are included in the Condensed Consolidated Balance Sheet as a component of the net deferred tax asset. The Company also has NOLs in other foreign jurisdictions for which a full valuation allowance has been established. Although the Company projects there will be sufficient future taxable income to fully recover the remainder of the NOL carryover for which benefits have been recognized, the Company's estimate of the likely realization may change over time. The U.S. NOL carryovers, if unused, would expire between 2026 and 2036. The foreign NOLs do not expire. The federal audits for the Company have been completed through 2013, and the Company is not currently under federal examination for any open years. Navigators Group is currently under federal audit for the 2016 year and has completed examinations through 2015. Management believes that adequate provision has been made in the Company's Condensed Consolidated Financial Statements for any potential adjustments that may result from tax examinations and other tax-related matters for all open tax years. The Company classifies interest and penalties (if applicable) as income tax expense in the condensed consolidated financial statements. The Company recognized no interest expense for the three and six months ended June 30, 2019 and 2018 . The Company had no interest payable as of June 30, 2019 and 2018 . The Company does not believe it would be subject to any penalties in any open tax years and, therefore, has not recorded any accrual for penalties. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | 12 . COMMITMENTS AND CONTINGENCIES Management evaluates each contingent matter separately. A loss is recorded if probable and reasonably estimable. Management establishes liabilities for these contingencies at its “best estimate,” or, if no one number within the range of possible losses is more probable than any other, the Company records an estimated liability at the low end of the range of losses. Litigation The Hartford is involved in claims litigation arising in the ordinary course of business, both as a liability insurer defending or providing indemnity for third-party claims brought against insureds and as an insurer defending coverage claims brought against it. The Hartford accounts for such activity through the establishment of unpaid loss and loss adjustment expense reserves. Subject to the uncertainties in the following discussion under the caption “Run-off Asbestos and Environmental Claims,” management expects that the ultimate liability, if any, with respect to such ordinary-course claims litigation, after consideration of provisions made for potential losses and costs of defense, will not be material to the consolidated financial condition, results of operations or cash flows of The Hartford. The Hartford is also involved in other kinds of legal actions, some of which assert claims for substantial amounts. These actions include, among others, and in addition to the matters in the following discussion, putative state and federal class actions seeking certification of a state or national class. Such putative class actions have alleged, for example, underpayment of claims or improper underwriting practices in connection with various kinds of insurance policies, such as personal and commercial automobile, property, disability, life and inland marine. The Hartford also is involved in individual actions in which punitive damages are sought, such as claims alleging bad faith in the handling of insurance claims or other allegedly unfair or improper business practices. Like many other insurers, The Hartford also has been joined in actions by asbestos plaintiffs asserting, among other things, that insurers had a duty to protect the public from the dangers of asbestos and that insurers committed unfair trade practices by asserting defenses on behalf of their policyholders in the underlying asbestos cases. Management expects that the ultimate liability, if any, with respect to such lawsuits, after consideration of provisions made for estimated losses, will not be material to the consolidated financial condition of The Hartford. Nonetheless, given the large or indeterminate amounts sought in certain of these actions, and the inherent unpredictability of litigation, the outcome in certain matters could, from time to time, have a material adverse effect on the Company's results of operations or cash flows in particular quarterly or annual periods. Run-off Asbestos and Environmental Claims –The Company continues to receive asbestos and environmental ("A&E") claims. Asbestos claims relate primarily to bodily injuries asserted by people who came in contact with asbestos or products containing asbestos. Environmental claims relate primarily to pollution and related clean-up costs. The vast majority of the Company's exposure to A&E relates to policy coverages provided prior to 1986. These exposures, together with certain exposures to latent environmental claims under general liability policies sold after 1986, are reported in Property & Casualty Other Operations ("Run-off A&E"). In addition, as part of its on-going operations, the Company writes environmental and pollution liability coverages. Prior to 1986, the Company wrote several different categories of insurance contracts that may cover A&E claims. First, the Company wrote primary policies providing the first layer of coverage in an insured’s liability program. Second, the Company wrote excess and umbrella policies providing higher layers of coverage for losses that exhaust the limits of underlying coverage. Third, the Company acted as a reinsurer assuming a portion of those risks assumed by other insurers writing primary, excess, umbrella and reinsurance coverages. Significant uncertainty limits the ability of insurers and reinsurers to estimate the ultimate reserves necessary for unpaid gross losses and expenses related to environmental and particularly asbestos claims. The degree of variability of gross reserve estimates for these exposures is significantly greater than for other more traditional exposures. In the case of the reserves for asbestos exposures, factors contributing to the high degree of uncertainty include inadequate loss development patterns, plaintiffs’ expanding theories of liability, the risks inherent in major litigation, and inconsistent emerging legal doctrines. Furthermore, over time, insurers, including the Company, have experienced significant changes in the rate at which asbestos claims are brought, the claims experience of particular insureds, and the value of claims, making predictions of future exposure from past experience uncertain. Plaintiffs and insureds also have sought to use bankruptcy proceedings, including “pre-packaged” bankruptcies, to accelerate and increase loss payments by insurers. In addition, some policyholders have asserted new classes of claims for coverages to which an aggregate limit of liability may not apply. Further uncertainties include insolvencies of other carriers and unanticipated developments pertaining to the Company’s ability to recover reinsurance for A&E claims. Management believes these issues are not likely to be resolved in the near future. In the case of the reserves for environmental exposures, factors contributing to the high degree of uncertainty include expanding theories of liability and damages, the risks inherent in major litigation, inconsistent decisions concerning the existence and scope of coverage for environmental claims, and uncertainty as to the monetary amount being sought by the claimant from the insured. The reporting pattern for assumed reinsurance claims, including those related to A&E claims, is much longer than for direct claims. In many instances, it takes months or years to determine that the policyholder’s own obligations have been met and how the reinsurance in question may apply to such claims. The delay in reporting reinsurance claims and exposures adds to the uncertainty of estimating the related reserves. It is also not possible to predict changes in the legal and legislative environment and their effect on the future development of A&E claims. Given the factors described above, the Company believes the actuarial tools and other techniques it employs to estimate the ultimate cost of claims for more traditional kinds of insurance exposure are less precise in estimating reserves for A&E exposures. For this reason, the Company principally relies on exposure-based analysis to estimate the ultimate costs of these claims, both gross and net of reinsurance, and regularly evaluates new account information in assessing its potential A&E exposures. The Company supplements this exposure-based analysis with evaluations of the Company’s historical direct net loss and expense paid and reported experience, and net loss and expense paid and reported experience by calendar and/or report year, to assess any emerging trends, fluctuations or characteristics suggested by the aggregate paid and reported activity. While the Company believes that its current A&E reserves are appropriate, significant uncertainties limit the ability of insurers and reinsurers to estimate the ultimate reserves necessary for unpaid losses and related expenses. The ultimate liabilities, thus, could exceed the currently recorded reserves, and any such additional liability, while not estimable now, could be material to The Hartford’s consolidated operating results and liquidity. For its Run-off A&E, as of June 30, 2019 , the Company reported $935 of net asbestos reserves and $139 of net environmental reserves . While the Company believes that its current Run-off A&E reserves are appropriate, significant uncertainties limit our ability to estimate the ultimate reserves necessary for unpaid losses and related expenses. The ultimate liabilities, thus, could exceed the currently recorded reserves, and any such additional liability, while not reasonably estimable now, could be material to The Hartford's consolidated operating results and liquidity. Effective December 31, 2016, the Company entered into an A&E adverse development cover ("ADC") reinsurance agreement with NICO to reduce uncertainty about potential adverse development of A&E reserves. Under the ADC, the Company paid a reinsurance premium of $650 for NICO to assume adverse net loss and allocated loss adjustment expense reserve development up to $1.5 billion above the Company’s existing net A&E reserves as of December 31, 2016 of approximately $1.7 billion . The $650 reinsurance premium was placed in a collateral trust account as security for NICO’s claim payment obligations to the Company. Under retroactive reinsurance accounting, net adverse A&E reserve development after December 31, 2016 will result in an offsetting reinsurance recoverable up to the $1.5 billion limit. Cumulative ceded losses up to the $650 reinsurance premium paid are recognized as a dollar-for-dollar offset to direct losses incurred. Cumulative ceded losses exceeding the $650 reinsurance premium paid would result in a deferred gain. The deferred gain would be recognized over the claim settlement period in the proportion of the amount of cumulative ceded losses collected from the reinsurer to the estimated ultimate reinsurance recoveries. Consequently, until periods when the deferred gain is recognized as a benefit to earnings, cumulative adverse development of A&E claims after December 31, 2016 in excess of $650 may result in significant charges against earnings. Furthermore, cumulative adverse development of A&E claims could ultimately exceed the $1.5 billion treaty limit in which case any adverse development in excess of the treaty limit would be absorbed as a charge to earnings by the Company. In these scenarios, the effect of these charges could be material to the Company’s consolidated operating results and liquidity. As of June 30, 2019 , the Company has incurred $523 in cumulative adverse development on A&E reserves that have been ceded under the ADC treaty with NICO, leaving approximately $ 977 of coverage available for future adverse net reserve development, if any. Derivative Commitments Certain of the Company’s derivative agreements contain provisions that are tied to the financial strength ratings, as set by nationally recognized statistical agencies, of the individual legal entity that entered into the derivative agreement. If the legal entity’s financial strength were to fall below certain ratings, the counterparties to the derivative agreements could demand immediate and ongoing full collateralization and in certain instances enable the counterparties to terminate the agreements and demand immediate settlement of all outstanding derivative positions traded under each impacted bilateral agreement. The settlement amount is determined by netting the derivative positions transacted under each agreement. If the termination rights were to be exercised by the counterparties, it could impact the legal entity’s ability to conduct hedging activities by increasing the associated costs and decreasing the willingness of counterparties to transact with the legal entity. The aggregate fair value of all derivative instruments with credit-risk-related contingent features that are in a net liability position as of June 30, 2019 was $76 . For this $76 , the legal entities have posted collateral of $72 in the normal course of business. Based on derivative market values as of June 30, 2019 , a downgrade of one level below the current financial strength ratings by either Moody's or S&P would not require additional assets to be posted as collateral. Based on derivative market values as of June 30, 2019 , a downgrade of two levels below the current financial strength ratings by either Moody's or S&P would require an additional $7 of assets to be posted as collateral. These collateral amounts could change as derivative market values change, as a result of changes in our hedging activities or to the extent changes in contractual terms are negotiated. The nature of the collateral that we post, if required, is primarily in the form of U.S. Treasury bills, U.S. Treasury notes and government agency securities. |
Equity
Equity | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Equity | 13 . EQUITY Capital Purchase Program ("CPP") Warrants CPP warrants were issued in 2009 as part of a program established by the U.S. Department of the Treasury under the Emergency Economic Stabilization Act of 2008. The CPP warrants expired on June 26, 2019. CPP warrant exercises were 1.0 million and 0.1 million for the three months ended June 30, 2019 and 2018 , respectively. CPP warrant exercises were 1.9 million and 0.1 million for the six months ended June 30, 2019 and 2018, respectively. As of December 31, 2018 , the Company had 1.9 million of CPP warrants outstanding and exercisable. Equity Repurchase Program In February, 2019, the Company announced a $1.0 billion share repurchase authorization by the Board of Directors which is effective through December 31, 2020. Based on projected holding company resources, the Company has begun share repurchases in 2019 but anticipates using the majority of the program in 2020. Any repurchase of shares under the equity repurchase program is dependent on market conditions and other factors. During the period July 1, 2019 to July 31, 2019, the Company repurchased approximately 0.3 million common shares for $16 . Equity Repurchase Activity and Remaining Repurchase Capacity Three months ended Common Shares Repurchased Cost of Shares Repurchased Average Price Paid per Share Remaining Capacity Under Share Repurchase Authorization (In millions, except for per share data) June 30, 2019 0.5 $ 27 $ 53.84 $ 973 |
Changes in and Reclassification
Changes in and Reclassifications from Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Changes in and Reclassifications from Accumulated Other Comprehensive Income (Loss) | 14 . CHANGES IN AND RECLASSIFICATIONS FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Changes in AOCI, Net of Tax for the Three Months Ended June 30, 2019 Changes in Net Unrealized Gain on Securities OTTI Losses in OCI Net Gain on Cash Flow Hedging Instruments Foreign Currency Translation Adjustments Pension and Other Postretirement Plan Adjustments AOCI, net of tax Beginning balance $ 703 $ (3 ) $ — $ 31 $ (1,616 ) $ (885 ) OCI before reclassifications 703 — 13 3 — 719 Amounts reclassified from AOCI (39 ) — (2 ) — 9 (32 ) OCI, net of tax 664 — 11 3 9 687 Ending balance $ 1,367 $ (3 ) $ 11 $ 34 $ (1,607 ) $ (198 ) Changes in AOCI, Net of Tax for the Six Months Ended June 30, 2019 Changes in Net Unrealized Gain on Securities OTTI Losses in OCI Net Gain on Cash Flow Hedging Instruments Foreign Currency Translation Adjustments Pension and Other Postretirement Plan Adjustments AOCI, net of tax Beginning balance $ 24 $ (4 ) $ (5 ) $ 30 $ (1,624 ) $ (1,579 ) OCI before reclassifications 1,399 1 19 4 — 1,423 Amounts reclassified from AOCI (56 ) — (3 ) — 17 (42 ) OCI, net of tax 1,343 1 16 4 17 1,381 Ending balance $ 1,367 $ (3 ) $ 11 $ 34 $ (1,607 ) $ (198 ) Reclassifications from AOCI Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 Affected Line Item in the Condensed Consolidated Statement of Operations Net Unrealized Gain on Securities Available-for-sale securities $ 50 $ 71 Net realized capital gains 50 71 Total before tax 11 15 Income tax expense $ 39 $ 56 Net income Net Gains on Cash Flow Hedging Instruments Interest rate swaps $ 2 $ 2 Net realized capital gains Interest rate swaps — — Net investment income Interest rate swaps 1 1 Interest expense Foreign currency swaps — 1 Net investment income 3 4 Total before tax 1 1 Income tax expense $ 2 $ 3 Net income Pension and Other Postretirement Plan Adjustments Amortization of prior service credit $ 2 $ 3 Insurance operating costs and other expenses Amortization of actuarial loss (13 ) (25 ) Insurance operating costs and other expenses (11 ) (22 ) Total before tax (2 ) (5 ) Income tax expense $ (9 ) $ (17 ) Net income Total amounts reclassified from AOCI $ 32 $ 42 Net income Changes in AOCI, Net of Tax for the Three Months Ended June 30, 2018 Changes in Net Unrealized Loss on Securities OTTI Losses in OCI Net Gain on Cash Flow Hedging Instruments Foreign Currency Translation Adjustments Pension and Other Postretirement Plan Adjustments AOCI, net of tax Beginning balance $ 1,349 $ (5 ) $ (24 ) $ 32 $ (1,591 ) $ (239 ) OCI before reclassifications [1] (1,148 ) 3 18 1 (1 ) (1,127 ) Amounts reclassified from AOCI 10 (1 ) (6 ) — 10 13 OCI, net of tax (1,138 ) 2 12 1 9 (1,114 ) Ending balance $ 211 $ (3 ) $ (12 ) $ 33 $ (1,582 ) $ (1,353 ) [1] The reduction in AOCI included the effect of removing $758 of Talcott Resolution AOCI from the balance sheet when the business was sold effective May 31, 2018. Changes in AOCI, Net of Tax for the Six Months Ended June 30, 2018 Changes in Net Unrealized Gain on Securities OTTI Losses in OCI Net Gain on Cash Flow Hedging Instruments Foreign Currency Translation Adjustments Pension and Other Postretirement Plan Adjustments AOCI, net of tax Beginning balance $ 1,931 $ (3 ) $ 18 $ 34 $ (1,317 ) $ 663 Cumulative effect of accounting changes, net of tax [1] 273 — 2 4 (284 ) (5 ) Adjusted balance, beginning of period 2,204 (3 ) 20 38 (1,601 ) 658 OCI before reclassifications [2] (2,030 ) 1 (13 ) (5 ) (1 ) (2,048 ) Amounts reclassified from AOCI 37 (1 ) (19 ) — 20 37 OCI, net of tax (1,993 ) — (32 ) (5 ) 19 (2,011 ) Ending balance $ 211 $ (3 ) $ (12 ) $ 33 $ (1,582 ) $ (1,353 ) [1] Includes reclassification to retained earnings of $88 of stranded tax effects and $93 of net unrealized gains, net of tax, related to equity securities. For further discussion of these reclassifications, see Note 1 - Basis of Presentation and Significant Accounting Policies of Notes to the Consolidated Financial Statements included in The Hartford's 2018 Form 10-K Annual Report. [2]The reduction in AOCI included the effect of removing $758 of Talcott Resolution AOCI from the balance sheet when the business was sold effective May 31, 2018. Reclassifications from AOCI Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 Affected Line Item in the Condensed Consolidated Statement of Operations Net Unrealized Loss on Securities Available-for-sale securities $ (6 ) $ (44 ) Net realized capital gains (6 ) (44 ) Total before tax (1 ) (9 ) Income tax expense (5 ) (2 ) Income from discontinued operations, net of tax $ (10 ) $ (37 ) Net income OTTI Losses in OCI Other than temporary impairments $ — $ — Net realized capital gains — — Income before taxes — — Income tax expense (benefit) $ 1 $ 1 Income from discontinued operations, net of tax $ 1 $ 1 Net Income (loss) Net Gains on Cash Flow Hedging Instruments Interest rate swaps $ — $ 1 Net realized capital gains Interest rate swaps 9 17 Net investment income 9 18 Total before tax 2 4 Income tax expense (benefit) (1 ) 5 Income from discontinued operations, net of tax $ 6 $ 19 Net income Pension and Other Postretirement Plan Adjustments Amortization of prior service credit $ 2 $ 3 Insurance operating costs and other expenses Amortization of actuarial loss (15 ) (28 ) Insurance operating costs and other expenses (13 ) (25 ) Total before tax (3 ) (5 ) Income tax expense $ (10 ) $ (20 ) Net income Total amounts reclassified from AOCI $ (13 ) $ (37 ) Net income |
Employee Benefit Plans
Employee Benefit Plans | 6 Months Ended |
Jun. 30, 2019 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | 15 . EMPLOYEE BENEFIT PLANS The Company’s employee benefit plans are described in Note 18 - Employee Benefit Plans of Notes to Consolidated Financial Statements included in The Hartford’s 2018 Annual Report on Form 10-K. Net Periodic Cost (Benefit) Pension Benefits Other Postretirement Benefits Three Months Ended June 30, Six months ended June 30, Three Months Ended June 30, Six months ended June 30, 2019 2018 2019 2018 2019 2018 2019 2018 Service cost $ 1 $ 1 $ 2 $ 2 $ — $ — $ — $ — Interest cost 40 36 79 71 2 1 4 3 Expected return on plan assets (56 ) (59 ) (113 ) (115 ) (1 ) (1 ) (2 ) (3 ) Amortization of prior service credit — — — — (2 ) (2 ) (3 ) (3 ) Amortization of actuarial loss 11 13 22 25 2 2 3 3 Net periodic cost (benefit) $ (4 ) $ (9 ) $ (10 ) $ (17 ) $ 1 $ — $ 2 $ — |
Business Dispositions and Disco
Business Dispositions and Discontinued Operations | 6 Months Ended |
Jun. 30, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Business Dispositions and Discontinued Operations | 17 . BUSINESS DISPOSITION AND DISCONTINUED OPERATIONS Sale of life and annuity business On May 31, 2018, the Company’s wholly-owned subsidiary, Hartford Holdings, Inc., completed the sale of its life and annuity business to a group of investors led by Cornell Capital LLC, Atlas Merchant Capital LLC, TRB Advisors LP, Global Atlantic Financial Group, Pine Brook and J. Safra Group. Under the terms of the sale agreement signed December 3, 2017, the investor group formed a limited partnership, Hopmeadow Holdings LP, that acquired HLI, and its life and annuity operating subsidiaries. The Hartford received a 9.7% ownership interest in the limited partnership. The life and annuity operations met the criteria for reporting as discontinued operations and are reported in the Corporate category through the date of sale. The Hartford reported its 9.7% ownership interest in Hopmeadow Holdings LP, which is accounted for under the equity method, in other assets in the Condensed Consolidated Balance Sheet. The Hartford recognizes its share of income in other revenues in the Condensed Consolidated Statement of Operations on a three month delay, when financial information from the investee becomes available. The Company recognized $ 3 and $31 , before tax, of income for the three and six months ended June 30, 2019, respectively. For further information on the sale, including ongoing transactions with the life and annuity business sold, see Note 20 - Business Dispositions and Discontinued Operations of Notes to Consolidated Financial Statements, included in The Hartford's 2018 Form 10-K Annual Report. Reconciliation of the Major Line Items Constituting Pretax Profit (Loss) of Discontinued Operations Three Months Ended June 30, Six Months Ended June 30, 2018 2018 Revenues Earned premiums $ 12 $ 39 Fee income and other 150 382 Net investment income 207 519 Net realized capital losses (93 ) (72 ) Total revenues 276 868 Benefits, losses and expenses Benefits, losses and loss adjustment expenses 207 535 Amortization of DAC 17 58 Insurance operating costs and other expenses [1] 61 162 Total benefits, losses and expenses 285 755 Income (loss) before income taxes (9 ) 113 Income tax expense (benefit) (6 ) 9 Income (loss) from operations of discontinued operations, net of tax (3 ) 104 Net realized capital gain on disposal, net of tax 151 213 Income from discontinued operations, net of tax $ 148 $ 317 [1]Corporate allocated overhead has been included in continuing operations. Cash Flows from Discontinued Operations Six Months Ended June 30, 2018 Net cash provided by operating activities from discontinued operations $ 603 Net cash provided by investing activities from discontinued operations $ 463 Net cash used in financing activities from discontinued operations [1] $ (737 ) Cash paid for interest $ — [1] Excludes return of capital to parent of $619 for the six months ended June 30, 2018. Cash flows from discontinued operations are included in the Condensed Consolidated Statement of Cash Flows. |
Leases Leases
Leases Leases | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Leases | 16 . LEASES The Hartford has operating leases for real estate and equipment. The right-of-use asset as of June 30, 2019 was $ 216 and is included in property and equipment, net, in the Condensed Consolidated Balance Sheet. The lease liability as of June 30, 2019 was $ 226 and is included in other liabilities in the Condensed Consolidated Balance Sheet. Variable lease costs include changes in interest rates on variable rate leases primarily for automobiles. Components of Lease Expense Three Months Ended June 30, Six Months Ended June 30, 2019 2019 Operating lease cost $ 12 $ 23 Short-term lease cost — 1 Variable lease cost — — Sublease income (1 ) (2 ) Total lease costs included in insurance operating costs and other expenses $ 11 $ 22 Supplemental Operating Lease Information June 30, 2019 Operating cash flows for operating leases (for the six months ended) $ 22 Weighted-average remaining lease term in years for operating leases 6 years Weighted-average discount rate for operating leases 3.6 % Future Minimum Lease Payments As of June 30, 2019 2019 $ 27 2020 51 2021 40 2022 34 2023 31 Thereafter 68 Total future minimum lease payments 251 Less: Discount on lease payments to present value 25 Total lease liability $ 226 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The Hartford Financial Services Group, Inc. is a holding company for insurance and financial services subsidiaries that provide property and casualty insurance, group life and disability products and mutual funds and exchange-traded products to individual and business customers (collectively, “The Hartford”, the “Company”, “we” or “our”). On May 23, 2019, the Company completed the previously announced acquisition of The Navigators Group, Inc. ("Navigators Group"), a global specialty underwriter, for $ 70 a share, or $2.136 billion in cash, including transaction expenses. For further discussion of this transaction, see Note 2 - Business Acquisition of Notes to Condensed Consolidated Financial Statements. On May 31, 2018, Hartford Holdings, Inc., a wholly owned subsidiary of the Company, completed the sale of the issued and outstanding equity of Hartford Life, Inc. (“HLI”), a holding company, for its life and annuity operating subsidiaries. For further discussion of this transaction, see Note 17 - Business Disposition and Discontinued Operations of Notes to Condensed Consolidated Financial Statements. The Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information, which differ materially from the accounting practices prescribed by various insurance regulatory authorities. These Condensed Consolidated Financial Statements and Notes should be read in conjunction with the Consolidated Financial Statements and Notes thereto included in the Company's 2018 Form 10-K Annual Report. The results of operations for interim periods are not necessarily indicative of the results that may be expected for the full year. The accompanying Condensed Consolidated Financial Statements and Notes are unaudited. These financial statements reflect all adjustments (generally consisting only of normal accruals) which are, in the opinion of management, necessary for the fair presentation of the financial position, results of operations and cash flows for the interim periods. The Company's significant accounting policies are summarized in Note 1 - Basis of Presentation and Significant Accounting Policies of Notes to Consolidated Financial Statements included in the Company's 2018 Form 10-K Annual Report. |
Consolidation | Consolidation The Condensed Consolidated Financial Statements include the accounts of The Hartford Financial Services Group, Inc., and entities in which the Company directly or indirectly has a controlling financial interest. Entities in which the Company has significant influence over the operating and financing decisions but does not control are reported using the equity method. All intercompany transactions and balances between The Hartford and its subsidiaries and affiliates that are not held for sale have been eliminated. |
Discontinued Operations, Policy [Policy Text Block] | Discontinued Operations The results of operations of a component of the Company are reported in discontinued operations when certain criteria are met as of the date of disposal, or earlier if classified as held-for-sale. When a component is identified for discontinued operations reporting, amounts for prior periods are retrospectively reclassified as discontinued operations. Components are identified as discontinued operations if they are a major part of an entity's operations and financial results such as a separate major line of business or a separate major geographical area of operations. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The most significant estimates include those used in determining property and casualty and group long-term disability insurance product reserves, net of reinsurance; evaluation of goodwill for impairment; valuation of investments and derivative instruments; valuation allowance on deferred tax assets; and contingencies relating to corporate litigation and regulatory matters. |
Adoption of New Accounting Standards | Adoption of New Accounting Standards Hedging Activities On January 1, 2019, the Company adopted the Financial Accounting Standards Board's ("FASB") updated guidance for hedge accounting through a cumulative effect adjustment of less than $1 to reclassify cumulative ineffectiveness on cash flow hedges from retained earnings to accumulated other comprehensive income ("AOCI"). The updates allow hedge accounting for new types of interest rate hedges of financial instruments and simplify documentation requirements to qualify for hedge accounting. In addition, any gain or loss from hedge ineffectiveness is reported in the same income statement line with the effective hedge results and the hedged transaction. For cash flow hedges, the ineffectiveness is recognized in earnings only when the hedged transaction affects earnings; otherwise, the ineffectiveness gains or losses remain in AOCI. Under previous accounting, total hedge ineffectiveness was reported separately in realized capital gains and losses apart from the hedged transaction. The adoption did not affect the Company’s financial position or cash flows or have a material effect on net income. Leases On January 1, 2019 , the Company adopted the FASB’s updated lease guidance. Under the updated guidance, lessees with operating leases are required to recognize a liability for the present value of future minimum lease payments with a corresponding asset for the right of use of the property. Prior to the new guidance, future minimum lease payments on operating leases were commitments that were not recognized as liabilities on the balance sheet. Leases are classified as financing or operating leases. Where the lease is economically similar to a purchase because The Hartford obtains control of the underlying asset, the lease is classified as a financing lease and the Company recognizes amortization of the right of use asset and interest expense on the liability. Where the lease provides The Hartford with only the right to control the use of the underlying asset over the lease term and the lease term is greater than one year, the lease is an operating lease and the lease cost is recognized as rental expense over the lease term on a straight-line basis. Leases with a term of one year or less are also expensed over the lease term but not recognized on the balance sheet. On adoption, The Hartford recorded a lease payment obligation of $160 for outstanding leases and a right of use asset of $150 , which is net of $10 in lease incentives received, with no change to comparative periods. As permitted by the new guidance, as of the implementation date, the Company did not reassess whether expired or existing contracts are leases or contain leases, did not change the classification of expired or existing operating leases, and did not reassess initial direct costs for existing leases to determine if deferred costs should be written-off or recorded on adoption. The adoption did not impact net income or cash flows. |
Commitments and Contingencies, Policy [Policy Text Block] | Management evaluates each contingent matter separately. A loss is recorded if probable and reasonably estimable. Management establishes liabilities for these contingencies at its “best estimate,” or, if no one number within the range of possible losses is more probable than any other, the Company records an estimated liability at the low end of the range of losses. |
Fair Value of Financial Instruments, Policy [Policy Text Block] | The Company carries certain financial assets and liabilities at estimated fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants. Our fair value framework includes a hierarchy that gives the highest priority to the use of quoted prices in active markets, followed by the use of market observable inputs, followed by the use of unobservable inputs. The fair value hierarchy levels are as follows: Level 1 Fair values based primarily on unadjusted quoted prices for identical assets or liabilities, in active markets that the Company has the ability to access at the measurement date. Level 2 Fair values primarily based on observable inputs, other than quoted prices included in Level 1, or based on prices for similar assets and liabilities. Level 3 Fair values derived when one or more of the significant inputs are unobservable (including assumptions about risk). With little or no observable market, the determination of fair values uses considerable judgment and represents the Company’s best estimate of an amount that could be realized in a market exchange for the asset or liability. Also included are securities that are traded within illiquid markets and/or priced by independent brokers. The Company will classify the financial asset or liability by level based upon the lowest level input that is significant to the determination of the fair value. In most cases, both observable inputs (e.g., changes in interest rates) and unobservable inputs (e.g., changes in risk assumptions) are used to determine fair values that the Company has classified within Level 3. Valuation Techniques The Company generally determines fair values using valuation techniques that use prices, rates, and other relevant information evident from market transactions involving identical or similar instruments. Valuation techniques also include, where appropriate, estimates of future cash flows that are converted into a single discounted amount using current market expectations. The Company uses a "waterfall" approach comprised of the following pricing sources and techniques, which are listed in priority order: • Quoted prices, unadjusted, for identical assets or liabilities in active markets, which are classified as Level 1. • Prices from third-party pricing services, which primarily utilize a combination of techniques. These services utilize recently reported trades of identical, similar, or benchmark securities making adjustments for market observable inputs available through the reporting date. If there are no recently reported trades, they may use a discounted cash flow technique to develop a price using expected cash flows based upon the anticipated future performance of the underlying collateral discounted at an estimated market rate. Both techniques develop prices that consider the time value of future cash flows and provide a margin for risk, including liquidity and credit risk. Most prices provided by third-party pricing services are classified as Level 2 because the inputs used in pricing the securities are observable. However, some securities that are less liquid or trade less actively are classified as Level 3. Additionally, certain long-dated securities, such as municipal securities and bank loans, include benchmark interest rate or credit spread assumptions that are not observable in the marketplace and are thus classified as Level 3. • Internal matrix pricing, which is a valuation process internally developed for private placement securities for which the Company is unable to obtain a price from a third-party pricing service. Internal pricing matrices determine credit spreads that, when combined with risk-free rates, are applied to contractual cash flows to develop a price. The Company develops credit spreads using market based data for public securities adjusted for credit spread differentials between public and private securities, which are obtained from a survey of multiple private placement brokers. The market-based reference credit spread considers the issuer’s financial strength and term to maturity, using an independent public security index and trade information, while the credit spread differential considers the non-public nature of the security. Securities priced using internal matrix pricing are classified as Level 2 because the inputs are observable or can be corroborated with observable data. • Independent broker quotes, which are typically non-binding, use inputs that can be difficult to corroborate with observable market based data. Brokers may use present value techniques using assumptions specific to the security types, or they may use recent transactions of similar securities. Due to the lack of transparency in the process that brokers use to develop prices, valuations that are based on independent broker quotes are classified as Level 3. The fair value of derivative instruments is determined primarily using a discounted cash flow model or option model technique and incorporates counterparty credit risk. In some cases, quoted market prices for exchange-traded and over-the-counter ("OTC") cleared derivatives may be used and in other cases independent broker quotes may be used. The pricing valuation models primarily use inputs that are observable in the market or can be corroborated by observable market data. The valuation of certain derivatives may include significant inputs that are unobservable, such as volatility levels, and reflect the Company’s view of what other market participants would use when pricing such instruments. Valuation Controls The fair value process for investments is monitored by the Valuation Committee, which is a cross-functional group of senior management within the Company that meets at least quarterly. The purpose of the committee is to oversee the pricing policy and procedures, as well as to approve changes to valuation methodologies and pricing sources. Controls and procedures used to assess third-party pricing services are reviewed by the Valuation Committee, including the results of annual due-diligence reviews. There are also two working groups under the Valuation Committee: a Securities Fair Value Working Group (“Securities Working Group”) and a Derivatives Fair Value Working Group ("Derivatives Working Group"). The working groups, which include various investment, operations, accounting and risk management professionals, meet monthly to review market data trends, pricing and trading statistics and results, and any proposed pricing methodology changes. The Securities Working Group reviews prices received from third parties to ensure that the prices represent a reasonable estimate of the fair value. The group considers trading volume, new issuance activity, market trends, new regulatory rulings and other factors to determine whether the market activity is significantly different than normal activity in an active market. A dedicated pricing unit follows up with trading and investment sector professionals and challenges prices of third-party pricing services when the estimated assumptions used differ from what the unit believes a market participant would use. If the available evidence indicates that pricing from third-party pricing services or broker quotes is based upon transactions that are stale or not from trades made in an orderly market, the Company places little, if any, weight on the third party service’s transaction price and will estimate fair value using an internal process, such as a pricing matrix. The Derivatives Working Group reviews the inputs, assumptions and methodologies used to ensure that the prices represent a reasonable estimate of the fair value. A dedicated pricing team works directly with investment sector professionals to investigate the impacts of changes in the market environment on prices or valuations of derivatives. New models and any changes to current models are required to have detailed documentation and are validated to a second source. The model validation documentation and results of validation are presented to the Valuation Committee for approval. The Company conducts other monitoring controls around securities and derivatives pricing including, but not limited to, the following: • Review of daily price changes over specific thresholds and new trade comparison to third-party pricing services. • Daily comparison of OTC derivative market valuations to counterparty valuations. • Review of weekly price changes compared to published bond prices of a corporate bond index. • Monthly reviews of price changes over thresholds, stale prices, missing prices, and zero prices. • Monthly validation of prices to a second source for securities in most sectors and for certain derivatives. In addition, the Company’s enterprise-wide Operational Risk Management function, led by the Chief Risk Officer, is responsible for model risk management and provides an independent review of the suitability and reliability of model inputs, as well as an analysis of significant changes to current models. Valuation Inputs Quoted prices for identical assets in active markets are considered Level 1 and consist of on-the-run U.S. Treasuries, money market funds, exchange-traded equity securities, open-ended mutual funds, certain short-term investments, and exchange traded futures and option contracts. Valuation Inputs Used in Levels 2 and 3 Measurements for Securities and Derivatives Level 2 Primary Observable Inputs Level 3 Primary Unobservable Inputs Fixed Maturity Investments Structured securities (includes ABS, CLOs, CMBS and RMBS) • Benchmark yields and spreads • Monthly payment information • Collateral performance, which varies by vintage year and includes delinquency rates, loss severity rates and refinancing assumptions • Credit default swap indices Other inputs for ABS and RMBS: • Estimate of future principal prepayments, derived from the characteristics of the underlying structure • Prepayment speeds previously experienced at the interest rate levels projected for the collateral • Independent broker quotes • Credit spreads beyond observable curve • Interest rates beyond observable curve Other inputs for less liquid securities or those that trade less actively, including subprime RMBS: • Estimated cash flows • Credit spreads, which include illiquidity premium • Constant prepayment rates • Constant default rates • Loss severity Corporates • Benchmark yields and spreads • Reported trades, bids, offers of the same or similar securities • Issuer spreads and credit default swap curves Other inputs for investment grade privately placed securities that utilize internal matrix pricing: • Credit spreads for public securities of similar quality, maturity, and sector, adjusted for non-public nature • Independent broker quotes • Credit spreads beyond observable curve • Interest rates beyond observable curve Other inputs for below investment grade privately placed securities: • Independent broker quotes • Credit spreads for public securities of similar quality, maturity, and sector, adjusted for non-public nature U.S. Treasuries, Municipals, and Foreign government/government agencies • Benchmark yields and spreads • Issuer credit default swap curves • Political events in emerging market economies • Municipal Securities Rulemaking Board reported trades and material event notices • Issuer financial statements • Credit spreads beyond observable curve • Interest rates beyond observable curve Equity Securities • Quoted prices in markets that are not active • For privately traded equity securities, internal discounted cash flow models utilizing earnings multiples or other cash flow assumptions that are not observable Short-term Investments • Benchmark yields and spreads • Reported trades, bids, offers • Issuer spreads and credit default swap curves • Material event notices and new issue money market rates Not applicable Derivatives Credit derivatives • Swap yield curve • Credit default swap curves Not applicable Equity derivatives • Equity index levels • Swap yield curve • Independent broker quotes • Equity volatility Foreign exchange derivatives • Swap yield curve • Currency spot and forward rates • Cross currency basis curves Not applicable Interest rate derivatives • Swap yield curve • Independent broker quotes • Interest rate volatility |
Business Acquisitions (Tables)
Business Acquisitions (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | Fair Value of Assets Acquired and Liabilities Assumed at the Acquisition Date As of May 23, 2019 Assets Cash and invested assets $ 3,848 Premiums receivable 492 Reinsurance recoverables 1,100 Prepaid reinsurance premiums 238 Other intangible assets 580 Property and equipment 83 Other assets 99 Total Assets Acquired 6,440 Liabilities Unpaid losses and loss adjustment expenses 2,823 Unearned premiums 1,219 Long-term debt 284 Deferred income taxes, net 48 Other liabilities 568 Total Liabilities Assumed 4,942 Net identifiable assets acquired 1,498 Goodwill [1] 623 Net Assets Acquired $ 2,121 [1] Non-deductible for income tax purposes. |
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block] | Intangible Assets Recorded in Connection with the Acquisition Asset Amount Weighted Average Expected Life Value of in-force contracts - Property and Casualty ("P&C") $ 180 1 Distribution relationships 302 15 Trade name 17 10 Total finite life intangibles 499 10 Capacity of Lloyd's Syndicate 66 Licenses 15 Total indefinite life intangibles 81 Total other intangible assets $ 580 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Expected Pre-tax Amortization Expense [1] for Acquired Intangibles as of June 30, 2019 Value of In-force Contracts Other Intangible Assets 2019 (six months) $ 84 $ 11 2020 $ 47 $ 22 2021 $ 21 $ 22 2022 $ 9 $ 22 2023 $ — $ 22 [1] In the Condensed Consolidated Statements of Operations, the amortization of value of in-force contracts is reported in amortization of deferred policy acquisition costs and the amortization of other intangible assets is reported in amortization of other intangible assets. |
Business Acquisition, Pro Forma Information [Table Text Block] | Pro Forma Results for the Six Months Ended June 30 Revenue Earnings 2019 Supplemental (unaudited) combined pro forma $ 10,708 $ 997 2018 Supplemental (unaudited) combined pro forma $ 10,185 $ 1,235 |
Earnings (Loss) Per Common Shar
Earnings (Loss) Per Common Share Earnings Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Common Share | Computation of Basic and Diluted Earnings per Common Share Three Months Ended June 30, Six Months Ended June 30, (In millions, except for per share data) 2019 2018 2019 2018 Earnings Income from continuing operations, net of tax $ 372 $ 434 $ 1,002 $ 862 Less: Preferred stock dividends — — 5 — Income from continuing operations, net of tax, available to common stockholders 372 434 $ 997 $ 862 Income from discontinued operations, net of tax, available to common stockholders — 148 — 317 Net income available to common stockholders $ 372 $ 582 $ 997 $ 1,179 Shares Weighted average common shares outstanding, basic 361.4 358.3 360.7 357.9 Dilutive effect of stock-based awards under compensation plans 3.2 4.0 3.3 4.2 Dilutive effect of warrants [1] 0.5 1.9 0.9 2.0 Weighted average common shares outstanding and dilutive potential common shares 365.1 364.2 364.9 364.1 Earnings per common share Basic Income from continuing operations, net of tax, available to common stockholders $ 1.03 $ 1.21 $ 2.76 $ 2.41 Income from discontinued operations, net of tax, available to common stockholders — 0.41 — 0.88 Net income available to common stockholders $ 1.03 $ 1.62 $ 2.76 $ 3.29 Diluted Income from continuing operations, net of tax, available to common stockholders $ 1.02 $ 1.19 $ 2.73 $ 2.37 Income from discontinued operations, net of tax, available to common stockholders — 0.41 — 0.87 Net income available to common stockholders $ 1.02 $ 1.60 $ 2.73 $ 3.24 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Reconciliation of Net Income from Segments to Consolidated | Net Income Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Commercial Lines $ 191 $ 372 $ 554 $ 670 Personal Lines 62 6 158 95 Property & Casualty Other Operations 11 5 34 22 Group Benefits 113 96 231 150 Hartford Funds 38 37 68 71 Corporate (43 ) 66 (43 ) 171 Net income 372 582 1,002 1,179 Preferred stock dividends — — 5 — Net income available to common stockholders $ 372 $ 582 $ 997 $ 1,179 |
Reconciliation of Revenue from Segments to Consolidated | Revenues Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Earned premiums and fee income: Commercial Lines Workers’ compensation $ 832 $ 832 $ 1,656 $ 1,650 Liability 233 159 401 310 Marine 27 — 27 — Package business 365 338 717 670 Property 175 152 331 302 Professional liability 98 63 166 125 Bond 65 61 125 119 Assumed reinsurance 29 — 29 — Automobile 172 148 330 297 Total Commercial Lines 1,996 1,753 3,782 3,473 Personal Lines Automobile 565 604 1,126 1,211 Homeowners 246 262 493 524 Total Personal Lines [1] 811 866 1,619 1,735 Group Benefits Group disability 723 690 1,427 1,367 Group life 638 652 1,281 1,316 Other 61 59 123 119 Total Group Benefits 1,422 1,401 2,831 2,802 Hartford Funds Mutual fund and Exchange-Traded Products ("ETP") 227 236 443 468 Talcott Resolution life and annuity separate accounts [2] 24 25 46 51 Total Hartford Funds 251 261 489 519 Corporate 12 4 25 6 Total earned premiums and fee income 4,492 4,285 8,746 8,535 Net investment income 488 428 958 879 Net realized capital gains 80 52 243 22 Other revenues 32 24 85 44 Total revenues $ 5,092 $ 4,789 $ 10,032 $ 9,480 [1] For the three months ended June 30, 2019 and 2018 , AARP members accounted for earned premiums of $726 and $758 , respectively. For the six months ended June 30, 2019 and 2018 , AARP members accounted for earned premiums of $1.4 billion and $1.5 billion , respectively. [2] Represents revenues earned for investment advisory services on the life and annuity separate account AUM sold in May 2018 that is still managed by the Company's Hartford Funds segment. |
Disaggregation of Revenue [Table Text Block] | Revenue from Non-Insurance Contracts with Customers Three months ended June 30, Six months ended June 30, Revenue Line Item 2019 2018 2019 2018 Commercial Lines Installment billing fees Fee income $ 9 $ 8 $ 18 $ 17 Personal Lines Installment billing fees Fee income 10 10 19 20 Insurance servicing revenues Other revenues 23 23 42 42 Group Benefits Administrative services Fee income 45 44 90 88 Hartford Funds Advisor, distribution and other management fees Fee income 228 239 446 477 Other fees Fee income 22 22 43 42 Corporate Investment management and other fees Fee income 11 4 24 6 Transition service revenues Other revenues 6 2 12 2 Total non-insurance revenues with customers $ 354 $ 352 $ 694 $ 694 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | Assets and (Liabilities) Carried at Fair Value by Hierarchy Level as of June 30, 2019 Total Quoted Prices in Significant Significant Assets accounted for at fair value on a recurring basis Fixed maturities, AFS Asset-backed-securities ("ABS") $ 1,029 $ — $ 1,024 $ 5 Collateralized loan obligations ("CLOs") 1,925 — 1,639 286 Commercial mortgage-backed securities ("CMBS") 3,905 — 3,870 35 Corporate 16,748 — 16,180 568 Foreign government/government agencies 1,072 — 1,069 3 Municipal 10,278 — 10,278 — Residential mortgage-backed securities ("RMBS") 4,566 — 3,808 758 U.S. Treasuries 1,643 282 1,361 — Total fixed maturities 41,166 282 39,229 1,655 Fixed maturities, FVO 49 — 49 — Equity securities, at fair value 1,533 1,227 234 72 Derivative assets Credit derivatives 9 — 9 — Equity derivatives 1 — — 1 Interest rate derivatives 1 — 1 — Total derivative assets [1] 11 — 10 1 Short-term investments 2,364 929 1,435 — Total assets accounted for at fair value on a recurring basis $ 45,123 $ 2,438 $ 40,957 $ 1,728 Liabilities accounted for at fair value on a recurring basis Derivative liabilities Credit derivatives 1 — 1 — Equity derivatives (4 ) — — (4 ) Foreign exchange derivatives (5 ) — (5 ) — Interest rate derivatives (63 ) — (63 ) — Total derivative liabilities [2] (71 ) — (67 ) (4 ) Contingent consideration [3] (21 ) — — (21 ) Total liabilities accounted for at fair value on a recurring basis $ (92 ) $ — $ (67 ) $ (25 ) Assets and (Liabilities) Carried at Fair Value by Hierarchy Level as of December 31, 2018 Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets accounted for at fair value on a recurring basis Fixed maturities, AFS Asset-backed-securities ("ABS") $ 1,276 $ — $ 1,266 $ 10 Collateralized loan obligations ("CLOs") 1,437 — 1,337 100 Commercial mortgage-backed securities ("CMBS") 3,552 — 3,540 12 Corporate 13,398 — 12,878 520 Foreign government/government agencies 847 — 844 3 Municipal 10,346 — 10,346 — Residential mortgage-backed securities ("RMBS") 3,279 — 2,359 920 U.S. Treasuries 1,517 330 1,187 — Total fixed maturities 35,652 330 33,757 1,565 Fixed maturities, FVO 22 — 22 — Equity securities, at fair value 1,214 1,093 44 77 Derivative assets Credit derivatives 5 — 5 — Equity derivatives 3 — — 3 Foreign exchange derivatives (2 ) — (2 ) — Interest rate derivatives 1 — 1 — Total derivative assets [1] 7 — 4 3 Short-term investments 4,283 1,039 3,244 — Total assets accounted for at fair value on a recurring basis $ 41,178 $ 2,462 $ 37,071 $ 1,645 Liabilities accounted for at fair value on a recurring basis Derivative liabilities Credit derivatives (2 ) — (2 ) — Equity derivatives 1 — 1 — Foreign exchange derivatives (5 ) — (5 ) — Interest rate derivatives (62 ) — (63 ) 1 Total derivative liabilities [2] (68 ) — (69 ) 1 Contingent consideration [3] (35 ) — — (35 ) Total liabilities accounted for at fair value on a recurring basis $ (103 ) $ — $ (69 ) $ (34 ) [1] Includes derivative instruments in a net positive fair value position after consideration of the accrued interest and impact of collateral posting requirements which may be imposed by agreements and applicable law. See footnote 2 to this table for derivative liabilities. [2] Includes derivative instruments in a net negative fair value position (derivative liability) after consideration of the accrued interest and impact of collateral posting requirements which may be imposed by agreements and applicable law. [3] For additional information see the Contingent Consideration section below. |
Fair Value Inputs, Assets, Quantitative Information | Significant Unobservable Inputs for Level 3 - Securities Assets accounted for at fair value on a recurring basis Fair Predominant Significant Unobservable Input Minimum Maximum Weighted Average [1] Impact of As of June 30, 2019 CLOs [3] $ 236 Discounted cash flows Spread 250 bps 257 bps 253 bps Decrease CMBS [3] $ 25 Discounted cash flows Spread (encompasses prepayment, default risk and loss severity) 9 bps 1,279 bps 189 bps Decrease Corporate [4] $ 387 Discounted cash flows Spread 117 bps 710 bps 254 bps Decrease RMBS [3] $ 710 Discounted cash flows Spread [6] 9 bps 416 bps 70 bps Decrease Constant prepayment rate [6] 1% 13% 6% Decrease [5] Constant default rate [6] 1% 6% 3% Decrease Loss severity [6] —% 100% 65% Decrease As of December 31, 2018 CMBS [3] $ 2 Discounted cash flows Spread (encompasses prepayment, default risk and loss severity) 9 bps 1,040 bps 182 bps Decrease Corporate [4] $ 274 Discounted cash flows Spread 145 bps 1,175 bps 263 bps Decrease RMBS [3] $ 815 Discounted cash flows Spread [6] 12 bps 215 bps 86 bps Decrease Constant prepayment rate [6] 1% 15% 6% Decrease [5] Constant default rate [6] 1% 8% 3% Decrease Loss severity [6] —% 100% 61% Decrease [1] The weighted average is determined based on the fair value of the securities. [2] Conversely, the impact of a decrease in input would have the opposite impact to the fair value as that presented in the table. [3] Excludes securities for which the Company bases fair value on broker quotations. [4] Excludes securities for which the Company bases fair value on broker quotations; however, included are broker priced lower-rated private placement securities for which the Company receives spread and yield information to corroborate the fair value. [5] Decrease for above market rate coupons and increase for below market rate coupons. [6] Generally, a change in the assumption used for the constant default rate would have been accompanied by a directionally similar change in the assumption used for the loss severity and a directionally opposite change in the assumption used for constant prepayment rate and would have resulted in wider spreads. Significant Unobservable Inputs for Level 3 - Derivatives Fair Predominant Significant Unobservable Input Minimum Maximum Weighted Average [1] Impact of As of June 30, 2019 Equity options $ (3 ) Option model Equity volatility 12 % 22 % 15 % Increase As of December 31, 2018 Interest rate swaptions [3] $ 1 Option model Interest rate volatility 3 % 3 % 3 % Increase Equity options $ 3 Option model Equity volatility 19 % 21 % 20 % Increase [1] The weighted average is determined based on the fair value of the derivatives. [2] Conversely, the impact of a decrease in input would have the opposite impact to the fair value as that presented in the table. Changes are based on long positions, unless otherwise noted. Changes in fair value will be inversely impacted for short positions. [3] The swaptions presented are purchased options that have the right to enter into a pay-fixed swap. |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | Fair Value Rollforwards for Financial Instruments Classified as Level 3 for the Three Months Ended June 30, 2019 Total realized/unrealized gains (losses) Fair value as of March 31, 2019 Included in net income [1] Included in OCI [2] Purchases Settlements Sales Transfers into Level 3 [3] Transfers out of Level 3 [3] Fair value as of June 30, 2019 Assets Fixed Maturities, AFS ABS $ 9 $ — $ — $ 5 $ — $ — $ — $ (9 ) $ 5 CLOs 114 — — 202 (10 ) — — (20 ) 286 CMBS 12 — — 24 (1 ) — — — 35 Corporate 525 — 2 58 (4 ) (39 ) 34 (8 ) 568 Foreign Govt./Govt. Agencies 3 — — — — — — — 3 RMBS 771 — — 90 (58 ) — — (45 ) 758 Total Fixed Maturities, AFS 1,434 — 2 379 (73 ) (39 ) 34 (82 ) 1,655 Equity Securities, at fair value 73 — — 4 — (5 ) — — 72 Derivatives, net [4] Equity 1 (4 ) — — — — — — (3 ) Total Derivatives, net [4] 1 (4 ) — — — — — — (3 ) Total Assets $ 1,508 $ (4 ) $ 2 $ 383 $ (73 ) $ (44 ) $ 34 $ (82 ) $ 1,724 Liabilities Contingent Consideration (29 ) (2 ) — — 10 — — — (21 ) Total Liabilities $ (29 ) $ (2 ) $ — $ — $ 10 $ — $ — $ — $ (21 ) Fair Value Rollforwards for Financial Instruments Classified as Level 3 for the Six Months Ended June 30, 2019 Total realized/unrealized gains (losses) Fair value as of January 1, 2019 Included in net income [1] Included in OCI [2] Purchases Settlements Sales Transfers into Level 3 [3] Transfers out of Level 3 [3] Fair value as of June 30, 2019 Assets Fixed Maturities, AFS ABS $ 10 $ — $ — $ 5 $ (1 ) $ — $ — $ (9 ) $ 5 CLOs 100 — — 237 (10 ) (6 ) — (35 ) 286 CMBS 12 — 1 24 (2 ) — — — 35 Corporate 520 (1 ) 9 95 (6 ) (64 ) 46 (31 ) 568 Foreign Govt./Govt. Agencies 3 — — — — — — — 3 RMBS 920 1 (2 ) 134 (112 ) (35 ) — (148 ) 758 Total Fixed Maturities, AFS 1,565 — 8 495 (131 ) (105 ) 46 (223 ) 1,655 Equity Securities, at fair value 77 (1 ) — 9 — (13 ) — — 72 Derivatives, net [4] Equity 3 (6 ) — — — — — — (3 ) Interest rate 1 (1 ) — — — — — — — Total Derivatives, net [4] 4 (7 ) — — — — — — (3 ) Total Assets $ 1,646 $ (8 ) $ 8 $ 504 $ (131 ) $ (118 ) $ 46 $ (223 ) $ 1,724 Liabilities Contingent Consideration (35 ) (6 ) — — 20 — — — (21 ) Total Liabilities $ (35 ) $ (6 ) $ — $ — $ 20 $ — $ — $ — $ (21 ) Fair Value Rollforwards for Financial Instruments Classified as Level 3 for the Three Months Ended June 30, 2018 Total realized/unrealized gains (losses) Fair value as of March 31, 2018 Included in net income [1] Included in OCI [2] Purchases Settlements Sales Transfers into Level 3 [3] Transfers out of Level 3 [3] Fair value as of June 30, 2018 Assets Fixed Maturities, AFS ABS $ 14 $ — $ — $ 50 $ (1 ) $ — $ 3 $ (9 ) $ 57 CLOs 106 — — 77 — (4 ) — (20 ) 159 CMBS 33 — — 25 (2 ) (8 ) — (20 ) 28 Corporate 515 — (7 ) 66 (18 ) (8 ) 15 (4 ) 559 Foreign Govt./Govt. Agencies 2 — — 1 — — — — 3 Municipal 16 — — — — — — (7 ) 9 RMBS 1,233 — (4 ) 68 (93 ) (1 ) — (66 ) 1,137 Total Fixed Maturities, AFS 1,919 — (11 ) 287 (114 ) (21 ) 18 (126 ) 1,952 Equity Securities, at fair value 65 — 1 1 — (1 ) — — 66 Derivatives, net [4] Equity 1 (1 ) — 1 — — — — 1 Interest rate 2 — — — — — — — 2 Total Derivatives, net [4] 3 (1 ) — 1 — — — — 3 Total Assets $ 1,987 $ (1 ) $ (10 ) $ 289 $ (114 ) $ (22 ) $ 18 $ (126 ) $ 2,021 Liabilities Contingent Consideration (27 ) (4 ) — — — — — — (31 ) Total Liabilities $ (27 ) $ (4 ) $ — $ — $ — $ — $ — $ — $ (31 ) Fair Value Rollforwards for Financial Instruments Classified as Level 3 for the Six Months Ended June 30, 2018 Total realized/unrealized gains (losses) Fair value as of January 1, 2018 Included in net income [1] Included in OCI [2] Purchases Settlements Sales Transfers into Level 3 [3] Transfers out of Level 3 [3] Fair value as of June 30, 2018 Assets Fixed Maturities, AFS ABS $ 19 $ — $ — $ 50 $ (3 ) $ — $ 3 $ (12 ) $ 57 CLOs 95 — — 98 — (4 ) — (30 ) 159 CMBS 69 — (1 ) 25 (3 ) (8 ) — (54 ) 28 Corporate 520 1 (8 ) 131 (32 ) (31 ) 15 (37 ) 559 Foreign Govt./Govt. Agencies 2 — — 1 — — — — 3 Municipal 17 — (1 ) — — — — (7 ) 9 RMBS 1,230 — (7 ) 170 (174 ) (1 ) — (81 ) 1,137 Total Fixed Maturities, AFS 1,952 1 (17 ) 475 (212 ) (44 ) 18 (221 ) 1,952 Equity Securities, AFS 76 28 1 1 — (40 ) — — 66 Derivatives, net [4] Equity 1 1 — 1 — (2 ) — — 1 Interest rate 1 1 — — — — — — 2 Total Derivatives, net [4] 2 2 — 1 — (2 ) — — 3 Total Assets $ 2,030 $ 31 $ (16 ) $ 477 $ (212 ) $ (86 ) $ 18 $ (221 ) $ 2,021 Liabilities Contingent Consideration (29 ) (2 ) — — — — — — (31 ) Total Liabilities $ (29 ) $ (2 ) $ — $ — $ — $ — $ — $ — $ (31 ) [1] Amounts in these columns are generally reported in net realized capital gains (losses). All amounts are before income taxes. [2] All amounts are before income taxes. [3] Transfers in and/or (out) of Level 3 are primarily attributable to the availability of market observable information and the re-evaluation of the observability of pricing inputs. [4] Derivative instruments are reported in this table on a net basis for asset (liability) positions and reported in the Condensed Consolidated Balance Sheets in other investments and other liabilities. Changes in Unrealized Gains (Losses) for Financial Instruments Classified as Level 3 Still Held at End of Period Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 2019 2018 2019 2018 Changes in Unrealized Gain/(Loss) included in Net Income [1] [2] Changes in Unrealized Gain/(Loss) included in OCI [3] Changes in Unrealized Gain/(Loss) included in Net Income [1] [2] Changes in Unrealized Gain/(Loss) included in OCI [3] Assets Fixed Maturities, AFS Corporate $ — $ — $ 2 $ (7 ) $ (1 ) $ — $ 9 $ (8 ) RMBS — — — (4 ) — — (1 ) (7 ) Total Fixed Maturities, AFS — — 2 (11 ) (1 ) — 8 (15 ) Derivatives, net Equity (4 ) (1 ) — — (6 ) — — — Interest rate — — — — (1 ) 1 — — Total Derivatives, net (4 ) (1 ) — — (7 ) 1 — — Total Assets $ (4 ) $ (1 ) $ 2 $ (11 ) $ (8 ) $ 1 $ 8 $ (15 ) Liabilities Contingent Consideration (2 ) (4 ) — — (6 ) (2 ) — — Total Liabilities $ (2 ) $ (4 ) $ — $ — $ (6 ) $ (2 ) $ — $ — [1] All amounts in these rows are reported in net realized capital gains (losses). All amounts are before income taxes. [2] Amounts presented are for Level 3 only and therefore may not agree to other disclosures included herein. [3] Changes in unrealized gain/(loss) on fixed maturities, AFS are reported in changes in net unrealized gain on securities in the Condensed Consolidated Statements of Comprehensive Income. Changes in interest rate derivatives are reported in changes in net gain on cash flow hedging instruments in the Condensed Consolidated Statements of Comprehensive Income. |
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments | Financial Assets and Liabilities Not Carried at Fair Value June 30, 2019 December 31, 2018 Fair Value Hierarchy Level Carrying Amount Fair Value Fair Value Hierarchy Level Carrying Amount Fair Value Assets Mortgage loans Level 3 $ 3,612 $ 3,746 Level 3 $ 3,704 $ 3,746 Liabilities Other policyholder funds and benefits payable Level 3 $ 799 $ 816 Level 3 $ 774 $ 775 Senior notes [1] Level 2 $ 3,461 $ 4,038 Level 2 $ 3,589 $ 3,887 Junior subordinated debentures [1] Level 2 $ 1,089 $ 1,097 Level 2 $ 1,089 $ 1,052 [1] Included in long-term debt in the Condensed Consolidated Balance Sheets, except for current maturities, which are included in short-term debt. |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Investments [Abstract] | |
Net Realized Capital Gains (Losses) | Net Realized Capital Gains Three Months Ended June 30, Six Months Ended June 30, (Before tax) 2019 2018 2019 2018 Gross gains on sales $ 69 $ 46 $ 113 $ 65 Gross losses on sales (19 ) (31 ) (40 ) (88 ) Equity securities [1] 30 26 162 42 Net OTTI losses recognized in earnings — — (2 ) — Valuation allowances on mortgage loans 1 — 1 — Transactional foreign currency revaluation — — — 1 Non-qualifying foreign currency derivatives (1 ) 4 — 1 Other, net [2] — 7 9 1 Net realized capital gains $ 80 $ 52 $ 243 $ 22 [1] Includes all changes in fair value and trading gains and losses for equity securities. The net unrealized gain (loss) on equity securities included in net realized capital gains (losses) related to equity securities still held as of June 30, 2019 , were $29 and $74 for the three and six months ended June 30, 2019 , respectively. The net unrealized gain (loss) on equity securities included in net realized capital gains (losses) related to equity securities still held as of June 30, 2018 , were $17 and $11 for the three and six months ended June 30, 2018 , respectively. [2] Includes gains (losses) on non-qualifying derivatives, excluding foreign currency derivatives, of $(6) and $8 , respectively, for the three months ended June 30, 2019 and 2018 . For the six months ended June 30, 2019 and 2018 , the non-qualifying derivatives, excluding foreign currency derivatives, were $8 and $(2) respectively. |
Impairments | Cumulative Credit Impairments Three Months Ended June 30, Six Months Ended June 30, (Before tax) 2019 2018 2019 2018 Balance as of beginning of period $ (18 ) $ (21 ) $ (19 ) $ (25 ) Additions for credit impairments recognized on [1]: Securities not previously impaired — — (2 ) — Reductions for credit impairments previously recognized on: Securities that matured or were sold during the period — 1 3 5 Balance as of end of period $ (18 ) $ (20 ) $ (18 ) $ (20 ) [1] These additions are included in the net OTTI losses recognized in earnings in the Condensed Consolidated Statements of Operations. Impairments in Earnings by Type Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Credit impairments $ — $ — $ 2 $ — Intent-to-sell impairments — — — — Total impairments $ — $ — $ 2 $ — |
Schedule of Available-for-sale Securities | AFS Securities by Type June 30, 2019 December 31, 2018 Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Non-Credit OTTI [1] Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Non-Credit OTTI [1] ABS $ 1,010 $ 19 $ — $ 1,029 $ — $ 1,272 $ 5 $ (1 ) $ 1,276 $ — CLOs 1,929 4 (8 ) 1,925 — 1,455 2 (20 ) 1,437 — CMBS 3,774 139 (8 ) 3,905 (4 ) 3,581 35 (64 ) 3,552 (5 ) Corporate 16,078 718 (48 ) 16,748 — 13,696 148 (446 ) 13,398 — Foreign govt./govt. agencies 1,025 48 (1 ) 1,072 — 866 7 (26 ) 847 — Municipal 9,568 710 — 10,278 — 9,972 421 (47 ) 10,346 — RMBS 4,478 90 (2 ) 4,566 — 3,270 44 (35 ) 3,279 — U.S. Treasuries 1,567 77 (1 ) 1,643 — 1,491 41 (15 ) 1,517 — Total fixed maturities, AFS $ 39,429 $ 1,805 $ (68 ) $ 41,166 $ (4 ) $ 35,603 $ 703 $ (654 ) $ 35,652 $ (5 ) [1] Represents the amount of cumulative non-credit OTTI losses recognized in OCI on securities that also had credit impairments. These losses are included in gross unrealized losses as of June 30, 2019 and December 31, 2018 . |
Investments by Contractual Maturity Year | Fixed maturities, AFS, by Contractual Maturity Year June 30, 2019 December 31, 2018 Amortized Cost Fair Value Amortized Cost Fair Value One year or less $ 1,094 $ 1,100 $ 999 $ 1,002 Over one year through five years 7,164 7,332 5,786 5,791 Over five years through ten years 7,580 7,910 6,611 6,495 Over ten years 12,400 13,399 12,629 12,820 Subtotal 28,238 29,741 26,025 26,108 Mortgage-backed and asset-backed securities 11,191 11,425 9,578 9,544 Total fixed maturities, AFS $ 39,429 $ 41,166 $ 35,603 $ 35,652 |
Unrealized Loss on Investments | Unrealized Loss Aging for AFS Securities by Type and Length of Time as of June 30, 2019 Less Than 12 Months 12 Months or More Total Amortized Cost Fair Value Unrealized Losses Amortized Cost Fair Value Unrealized Losses Amortized Cost Fair Value Unrealized Losses ABS $ 90 $ 90 $ — $ 29 $ 29 $ — $ 119 $ 119 $ — CLOs 1,229 1,223 (6 ) 155 153 (2 ) 1,384 1,376 (8 ) CMBS 49 48 (1 ) 372 365 (7 ) 421 413 (8 ) Corporate 315 309 (6 ) 1,504 1,462 (42 ) 1,819 1,771 (48 ) Foreign govt./govt. agencies 23 23 — 62 61 (1 ) 85 84 (1 ) Municipal 36 36 — 7 7 — 43 43 — RMBS 90 90 — 356 354 (2 ) 446 444 (2 ) U.S. Treasuries 16 16 — 163 162 (1 ) 179 178 (1 ) Total fixed maturities, AFS in an unrealized loss position $ 1,848 $ 1,835 $ (13 ) $ 2,648 $ 2,593 $ (55 ) $ 4,496 $ 4,428 $ (68 ) Unrealized Loss Aging for AFS Securities by Type and Length of Time as of December 31, 2018 Less Than 12 Months 12 Months or More Total Amortized Cost Fair Value Unrealized Losses Amortized Cost Fair Value Unrealized Losses Amortized Cost Fair Value Unrealized Losses ABS $ 566 $ 566 $ — $ 113 $ 112 $ (1 ) $ 679 $ 678 $ (1 ) CLOs 1,358 1,338 (20 ) 7 7 — 1,365 1,345 (20 ) CMBS 896 882 (14 ) 1,129 1,079 (50 ) 2,025 1,961 (64 ) Corporate 7,174 6,903 (271 ) 2,541 2,366 (175 ) 9,715 9,269 (446 ) Foreign govt./govt. agencies 407 391 (16 ) 203 193 (10 ) 610 584 (26 ) Municipal 1,643 1,613 (30 ) 292 275 (17 ) 1,935 1,888 (47 ) RMBS 1,344 1,329 (15 ) 648 628 (20 ) 1,992 1,957 (35 ) U.S. Treasuries 497 492 (5 ) 339 329 (10 ) 836 821 (15 ) Total fixed maturities, AFS in an unrealized loss position $ 13,885 $ 13,514 $ (371 ) $ 5,272 $ 4,989 $ (283 ) $ 19,157 $ 18,503 $ (654 ) |
Schedule of Valuation Allowance for Impairment of Recognized Servicing Assets | Valuation Allowance Activity 2019 2018 Balance, as of January 1 $ (1 ) $ (1 ) Reversals 1 — Deductions — — Balance, as of June 30 $ — $ (1 ) |
Loans Credit Quality | Mortgage Loans Credit Quality June 30, 2019 December 31, 2018 Loan-to-value Carrying Value Avg. Debt-Service Coverage Ratio Carrying Value Avg. Debt-Service Coverage Ratio 65% - 80% 404 1.70x 386 1.60x Less than 65% 3,208 2.56x 3,318 2.59x Total mortgage loans $ 3,612 2.47x $ 3,704 2.49x Mortgage Loans by Region June 30, 2019 December 31, 2018 Carrying Value Percent of Total Carrying Value Percent of Total East North Central $ 250 6.9 % $ 250 6.8 % Middle Atlantic 268 7.4 % 270 7.3 % Mountain 33 0.9 % 30 0.8 % New England 346 9.7 % 330 8.9 % Pacific 884 24.5 % 917 24.8 % South Atlantic 742 20.5 % 712 19.2 % West North Central 121 3.3 % 148 4.0 % West South Central 407 11.3 % 420 11.3 % Other [1] 561 15.5 % 627 16.9 % Total mortgage loans $ 3,612 100.0 % $ 3,704 100.0 % [1] Primarily represents loans collateralized by multiple properties in various regions. Mortgage Loans by Property Type June 30, 2019 December 31, 2018 Carrying Value Percent of Total Carrying Percent of Total Commercial Industrial $ 1,000 27.7 % $ 1,108 29.9 % Multifamily 1,156 32.0 % 1,138 30.7 % Office 691 19.2 % 708 19.1 % Retail 409 11.3 % 392 10.6 % Single Family 81 2.2 % 82 2.2 % Other 275 7.6 % 276 7.5 % Total mortgage loans $ 3,612 100.0 % $ 3,704 100.0 % |
Securities Lending and Repurchase Agreements [Table Text Block] | Payables for Collateral on Investments June 30, 2019 December 31, 2018 Fair Value Fair Value Securities Lending Transactions: Gross amount of securities on loan $ 585 $ 820 Gross amount of associated liability for collateral received [1] $ 599 $ 840 Repurchase agreements: Gross amount of recognized liabilities for repurchase agreements $ 154 $ 72 Gross amount of collateral pledged related to repurchase agreements [2] $ 158 $ 73 Gross amount of recognized receivables for reverse repurchase agreements $ 54 $ 64 [1] Cash collateral received is reinvested in fixed maturities, AFS and short-term investments which are included in the Condensed Consolidated Balance Sheets. Amount includes additional securities collateral received of $18 and $3 which are excluded from the Company's Condensed Consolidated Balance Sheets as of June 30, 2019 and December 31, 2018 , respectively. [2] Collateral pledged is included within fixed maturities, AFS and short-term investments in the Company's Condensed Consolidated Balance Sheets. |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Balance Sheet Presentation | Derivative Balance Sheet Presentation Net Derivatives Asset Derivatives Liability Derivatives Notional Amount Fair Value Fair Value Fair Value Hedge Designation/ Derivative Type Jun. 30, 2019 Dec. 31, 2018 Jun. 30, 2019 Dec. 31, 2018 Jun. 30, 2019 Dec. 31, 2018 Jun. 30, 2019 Dec. 31, 2018 Cash flow hedges Interest rate swaps $ 2,040 $ 2,040 $ — $ 1 $ — $ 2 $ — $ (1 ) Foreign currency swaps 220 153 (3 ) (6 ) 4 2 (7 ) (8 ) Total cash flow hedges 2,260 2,193 (3 ) (5 ) 4 4 (7 ) (9 ) Non-qualifying strategies Interest rate contracts Interest rate swaps and futures 8,338 8,451 (62 ) (62 ) 3 8 (65 ) (70 ) Foreign exchange contracts Foreign currency swaps and forwards 389 287 (2 ) (1 ) — — (2 ) (1 ) Credit contracts Credit derivatives that purchase credit protection 115 6 (1 ) — — — (1 ) — Credit derivatives that assume credit risk [1] 514 1,102 11 3 11 8 — (5 ) Credit derivatives in offsetting positions 35 41 — — 6 6 (6 ) (6 ) Equity contracts Equity index swaps and options 710 211 (3 ) 4 6 5 (9 ) (1 ) Total non-qualifying strategies 10,101 10,098 (57 ) (56 ) 26 27 (83 ) (83 ) Total cash flow hedges and non-qualifying strategies $ 12,361 $ 12,291 $ (60 ) $ (61 ) $ 30 $ 31 $ (90 ) $ (92 ) Balance Sheet Location Fixed maturities, available-for-sale $ 153 $ 153 $ — $ — $ — $ — $ — $ — Other investments 1,353 9,864 11 7 12 23 (1 ) (16 ) Other liabilities 10,855 2,274 (71 ) (68 ) 18 8 (89 ) (76 ) Total derivatives $ 12,361 $ 12,291 $ (60 ) $ (61 ) $ 30 $ 31 $ (90 ) $ (92 ) [1] The derivative instruments related to this strategy are held for other investment purposes. |
Offsetting Liabilities | Offsetting Derivative Assets and Liabilities (i) (ii) (iii) = (i) - (ii) (iv) (v) = (iii) - (iv) Net Amounts Presented in the Statement of Financial Position Collateral Disallowed for Offset in the Statement of Financial Position Gross Amounts of Recognized Assets (Liabilities) Gross Amounts Offset in the Statement of Financial Position Derivative Assets [1] (Liabilities) [2] Accrued Interest and Cash Collateral (Received) [3] Pledged [2] Financial Collateral (Received) Pledged [4] Net Amount As of June 30, 2019 Other investments $ 30 $ 26 $ 11 $ (7 ) $ 1 $ 3 Other liabilities $ (90 ) $ (15 ) $ (71 ) $ (4 ) $ (68 ) $ (7 ) As of December 31, 2018 Other investments $ 31 $ 26 $ 7 $ (2 ) $ 2 $ 3 Other liabilities $ (92 ) $ (20 ) $ (68 ) $ (4 ) $ (65 ) $ (7 ) [1] Included in other investments in the Company's Condensed Consolidated Balance Sheets. [2] Included in other liabilities in the Company's Condensed Consolidated Balance Sheets and is limited to the net derivative payable associated with each counterparty. [3] Included in other investments in the Company's Condensed Consolidated Balance Sheets and is limited to the net derivative receivable associated with each counterparty. [4] Excludes collateral associated with exchange-traded derivative instruments. |
Derivatives in Cash Flow Hedging Relationships | Gain (Loss) Reclassified from AOCI into Income Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Net Realized Capital Gain/(Loss) Net Investment Income Interest Expense Net Realized Capital Gain/(Loss) Net Investment Income Interest Expense Net Realized Capital Gain/(Loss) Net Investment Income Interest Expense Net Realized Capital Gain/(Loss) Net Investment Income Interest Expense Interest rate swaps $ 2 $ — $ 1 $ — $ 9 $ — $ 2 $ — $ 1 $ 1 $ 17 $ — Foreign currency swaps — — — — — — — 1 — — — — Total $ 2 $ — $ 1 $ — $ 9 $ — $ 2 $ 1 $ 1 $ 1 $ 17 $ — Total amounts presented on the Condensed Consolidated Statement of Operations $ 80 $ 488 $ 63 $ 52 $ 428 $ 79 $ 243 $ 958 $ 127 $ 22 $ 879 $ 159 |
Non-Qualifying Strategies Recognized within Net Realized Capital Gains (Losses) | For non-qualifying strategies, including embedded derivatives that are required to be bifurcated from their host contracts and accounted for as derivatives, the gain or loss on the derivative is recognized currently in earnings within net realized capital |
Credit Derivatives by Type | Credit Risk Assumed Derivatives by Type Underlying Referenced Credit Obligation(s) [1] Notional Amount [2] Fair Value Weighted Average Years to Maturity Type Average Credit Rating Offsetting Notional Amount [3] Offsetting Fair Value [3] As of June 30, 2019 Single name credit default swaps Investment grade risk exposure $ 165 $ 4 5 years Corporate Credit A- $ — $ — Basket credit default swaps [4] Investment grade risk exposure 350 7 5 years Corporate Credit BBB+ — — Investment grade risk exposure 1 — Less than 1 year CMBS Credit A 1 — Below investment grade risk exposure 16 (6 ) Less than 1 year CMBS Credit CCC 17 6 Total [5] $ 532 $ 5 $ 18 $ 6 As of December 31, 2018 Single name credit default swaps Investment grade risk exposure $ 169 $ 2 4 years Corporate Credit/ A $ — $ — Basket credit default swaps [4] Investment grade risk exposure 799 (1 ) 6 years Corporate Credit BBB+ — — Below investment grade risk exposure 125 2 5 years Corporate Credit B+ — — Investment grade risk exposure 11 — 5 years CMBS Credit A- 2 — Below investment grade risk exposure 19 (6 ) Less than 1 year CMBS Credit CCC 19 6 Total [5] $ 1,123 $ (3 ) $ 21 $ 6 [1] The average credit ratings are based on availability and are generally the midpoint of the available ratings among Moody’s, S&P and Fitch. If no rating is available from a rating agency, then an internally developed rating is used. [2] Notional amount is equal to the maximum potential future loss amount. These derivatives are governed by agreements and applicable law, which include collateral posting requirements. There is no additional specific collateral related to these contracts or recourse provisions included in the contracts to offset losses. [3] The Company has entered into offsetting credit default swaps to terminate certain existing credit default swaps, thereby offsetting the future changes in value of, or losses paid related to, the original swap. [4] Comprised of swaps of standard market indices of diversified portfolios of corporate and CMBS issuers referenced through credit default swaps. These swaps are subsequently valued based upon the observable standard market index. [5] Excludes investments that contain an embedded credit derivative for which the Company has elected the fair value option. For further discussion, see the Fair Value Option section in Note 5 - Fair Value Measurements of Notes to Condensed Consolidated Financial Statements. |
Reserve for Unpaid Losses and_2
Reserve for Unpaid Losses and Loss Adjustment Expenses (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Liabilities for Unpaid Losses and Loss Adjustment Expenses | Unfavorable (Favorable) Prior Accident Year Development For the six months ended June 30, 2019 2018 Workers’ compensation $ (50 ) $ (73 ) Workers’ compensation discount accretion 17 20 General liability 43 28 Marine 10 — Package business (9 ) (7 ) Commercial property (15 ) (12 ) Professional liability 33 8 Bond — — Assumed Reinsurance 3 — Automobile liability - Commercial Lines 2 (10 ) Automobile liability - Personal Lines (5 ) — Homeowners 1 (13 ) Net asbestos reserves — — Net environmental reserves — — Catastrophes (22 ) (34 ) Uncollectible reinsurance — 11 Other reserve re-estimates, net 16 3 Total prior accident year development $ 24 $ (79 ) |
Property, Liability and Casualty Insurance Product Line | |
Liabilities for Unpaid Losses and Loss Adjustment Expenses | Rollforward of Liabilities for Unpaid Losses and Loss Adjustment Expenses For the six months ended June 30, 2019 2018 Beginning liabilities for unpaid losses and loss adjustment expenses, gross $ 24,584 $ 23,775 Reinsurance and other recoverables 4,232 3,957 Beginning liabilities for unpaid losses and loss adjustment expenses, net 20,352 19,818 Navigators Group acquisition 2,001 — Provision for unpaid losses and loss adjustment expenses Current accident year 3,475 3,362 Prior accident year development 24 (79 ) Total provision for unpaid losses and loss adjustment expenses 3,499 3,283 Less payments Current accident year 848 934 Prior accident years 2,381 2,308 Total payments 3,229 3,242 Ending liabilities for unpaid losses and loss adjustment expenses, net 22,623 19,859 Reinsurance and other recoverables 5,125 3,772 Ending liabilities for unpaid losses and loss adjustment expenses, gross $ 27,748 $ 23,631 |
Group Insurance Policies [Member] | |
Liabilities for Unpaid Losses and Loss Adjustment Expenses | Rollforward of Liabilities for Unpaid Losses and Loss Adjustment Expenses For the six months ended June 30, 2019 2018 Beginning liabilities for unpaid losses and loss adjustment expenses, gross $ 8,445 $ 8,512 Reinsurance recoverables 239 209 Beginning liabilities for unpaid losses and loss adjustment expenses, net 8,206 8,303 Provision for unpaid losses and loss adjustment expenses Current incurral year 2,269 2,317 Prior year's discount accretion 117 120 Prior incurral year development [1] (206 ) (217 ) Total provision for unpaid losses and loss adjustment expenses [2] 2,180 2,220 Less: payments Current incurral year 922 974 Prior incurral years 1,342 1,335 Total payments 2,264 2,309 Ending liabilities for unpaid losses and loss adjustment expenses, net 8,122 8,214 Reinsurance recoverables 234 235 Ending liabilities for unpaid losses and loss adjustment expenses, gross $ 8,356 $ 8,449 [1] Prior incurral year development represents the change in estimated ultimate incurred losses and loss adjustment expenses for prior incurral years on a discounted basis. [2] Includes unallocated loss adjustment expenses of $85 for the six months ended June 30, 2019 and 2018 |
Reserves for Future Policy Bene
Reserves for Future Policy Benefits (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Insurance Loss Reserves [Abstract] | |
Changes in Reserves for Future Policy Benefits | Changes in Reserves for Future Policy Benefits [1] Liability balance, as of January 1, 2019 $ 642 Incurred 44 Paid (55 ) Change in unrealized investment gains and losses 13 Liability balance, as of June 30, 2019 $ 644 Reinsurance recoverable asset, as of January 1, 2019 $ 27 Incurred — Paid — Reinsurance recoverable asset, as of June 30, 2019 $ 27 Liability balance, as of January 1, 2018 $ 713 Incurred 14 Paid (19 ) Change in unrealized investment gains and losses (40 ) Liability balance, as of June 30, 2018 $ 668 Reinsurance recoverable asset, as of January 1, 2018 $ 26 Incurred 9 Paid — Reinsurance recoverable asset, as of June 30, 2018 $ 35 [1]Reserves for future policy benefits includes paid-up life insurance and whole-life policies resulting from conversion from group life policies included within the Group Benefits segment and reserves for run-off structured settlement and terminal funding agreement liabilities which are in the Corporate category. |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Tax Rate Reconciliation | Income Tax Rate Reconciliation Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Tax provision at U.S. federal statutory rate $ 95 $ 112 $ 258 $ 221 Tax-exempt interest (14 ) (17 ) (29 ) (34 ) Executive compensation 1 3 5 7 Stock-based compensation (1 ) — (4 ) (2 ) Tax Reform — 5 — 2 Other 3 — (1 ) — Provision for income taxes $ 84 $ 103 $ 229 $ 194 |
Roll-forward of Unrecognized Tax Benefits | Rollforward of Unrecognized Tax Benefits Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Balance, beginning of period $ 14 $ 9 $ 14 $ 9 Gross increases - tax positions in prior period — — — — Gross decreases - tax positions in prior period — — — — Balance, end of period $ 14 $ 9 $ 14 $ 9 |
Equity Equity Repurchase Activi
Equity Equity Repurchase Activity (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Class of Treasury Stock [Table Text Block] | Equity Repurchase Activity and Remaining Repurchase Capacity Three months ended Common Shares Repurchased Cost of Shares Repurchased Average Price Paid per Share Remaining Capacity Under Share Repurchase Authorization (In millions, except for per share data) June 30, 2019 0.5 $ 27 $ 53.84 $ 973 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income Loss (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Changes in AOCI, net of tax | Changes in AOCI, Net of Tax for the Three Months Ended June 30, 2019 Changes in Net Unrealized Gain on Securities OTTI Losses in OCI Net Gain on Cash Flow Hedging Instruments Foreign Currency Translation Adjustments Pension and Other Postretirement Plan Adjustments AOCI, net of tax Beginning balance $ 703 $ (3 ) $ — $ 31 $ (1,616 ) $ (885 ) OCI before reclassifications 703 — 13 3 — 719 Amounts reclassified from AOCI (39 ) — (2 ) — 9 (32 ) OCI, net of tax 664 — 11 3 9 687 Ending balance $ 1,367 $ (3 ) $ 11 $ 34 $ (1,607 ) $ (198 ) Changes in AOCI, Net of Tax for the Six Months Ended June 30, 2019 Changes in Net Unrealized Gain on Securities OTTI Losses in OCI Net Gain on Cash Flow Hedging Instruments Foreign Currency Translation Adjustments Pension and Other Postretirement Plan Adjustments AOCI, net of tax Beginning balance $ 24 $ (4 ) $ (5 ) $ 30 $ (1,624 ) $ (1,579 ) OCI before reclassifications 1,399 1 19 4 — 1,423 Amounts reclassified from AOCI (56 ) — (3 ) — 17 (42 ) OCI, net of tax 1,343 1 16 4 17 1,381 Ending balance $ 1,367 $ (3 ) $ 11 $ 34 $ (1,607 ) $ (198 ) Changes in AOCI, Net of Tax for the Three Months Ended June 30, 2018 Changes in Net Unrealized Loss on Securities OTTI Losses in OCI Net Gain on Cash Flow Hedging Instruments Foreign Currency Translation Adjustments Pension and Other Postretirement Plan Adjustments AOCI, net of tax Beginning balance $ 1,349 $ (5 ) $ (24 ) $ 32 $ (1,591 ) $ (239 ) OCI before reclassifications [1] (1,148 ) 3 18 1 (1 ) (1,127 ) Amounts reclassified from AOCI 10 (1 ) (6 ) — 10 13 OCI, net of tax (1,138 ) 2 12 1 9 (1,114 ) Ending balance $ 211 $ (3 ) $ (12 ) $ 33 $ (1,582 ) $ (1,353 ) [1] The reduction in AOCI included the effect of removing $758 of Talcott Resolution AOCI from the balance sheet when the business was sold effective May 31, 2018. Changes in AOCI, Net of Tax for the Six Months Ended June 30, 2018 Changes in Net Unrealized Gain on Securities OTTI Losses in OCI Net Gain on Cash Flow Hedging Instruments Foreign Currency Translation Adjustments Pension and Other Postretirement Plan Adjustments AOCI, net of tax Beginning balance $ 1,931 $ (3 ) $ 18 $ 34 $ (1,317 ) $ 663 Cumulative effect of accounting changes, net of tax [1] 273 — 2 4 (284 ) (5 ) Adjusted balance, beginning of period 2,204 (3 ) 20 38 (1,601 ) 658 OCI before reclassifications [2] (2,030 ) 1 (13 ) (5 ) (1 ) (2,048 ) Amounts reclassified from AOCI 37 (1 ) (19 ) — 20 37 OCI, net of tax (1,993 ) — (32 ) (5 ) 19 (2,011 ) Ending balance $ 211 $ (3 ) $ (12 ) $ 33 $ (1,582 ) $ (1,353 ) [1] Includes reclassification to retained earnings of $88 of stranded tax effects and $93 of net unrealized gains, net of tax, related to equity securities. For further discussion of these reclassifications, see Note 1 - Basis of Presentation and Significant Accounting Policies of Notes to the Consolidated Financial Statements included in The Hartford's 2018 Form 10-K Annual Report. [2]The reduction in AOCI included the effect of removing $758 of Talcott Resolution AOCI from the balance sheet when the business was sold effective May 31, 2018. |
Reclassifications from AOCI | Reclassifications from AOCI Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 Affected Line Item in the Condensed Consolidated Statement of Operations Net Unrealized Loss on Securities Available-for-sale securities $ (6 ) $ (44 ) Net realized capital gains (6 ) (44 ) Total before tax (1 ) (9 ) Income tax expense (5 ) (2 ) Income from discontinued operations, net of tax $ (10 ) $ (37 ) Net income OTTI Losses in OCI Other than temporary impairments $ — $ — Net realized capital gains — — Income before taxes — — Income tax expense (benefit) $ 1 $ 1 Income from discontinued operations, net of tax $ 1 $ 1 Net Income (loss) Net Gains on Cash Flow Hedging Instruments Interest rate swaps $ — $ 1 Net realized capital gains Interest rate swaps 9 17 Net investment income 9 18 Total before tax 2 4 Income tax expense (benefit) (1 ) 5 Income from discontinued operations, net of tax $ 6 $ 19 Net income Pension and Other Postretirement Plan Adjustments Amortization of prior service credit $ 2 $ 3 Insurance operating costs and other expenses Amortization of actuarial loss (15 ) (28 ) Insurance operating costs and other expenses (13 ) (25 ) Total before tax (3 ) (5 ) Income tax expense $ (10 ) $ (20 ) Net income Total amounts reclassified from AOCI $ (13 ) $ (37 ) Net income Reclassifications from AOCI Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 Affected Line Item in the Condensed Consolidated Statement of Operations Net Unrealized Gain on Securities Available-for-sale securities $ 50 $ 71 Net realized capital gains 50 71 Total before tax 11 15 Income tax expense $ 39 $ 56 Net income Net Gains on Cash Flow Hedging Instruments Interest rate swaps $ 2 $ 2 Net realized capital gains Interest rate swaps — — Net investment income Interest rate swaps 1 1 Interest expense Foreign currency swaps — 1 Net investment income 3 4 Total before tax 1 1 Income tax expense $ 2 $ 3 Net income Pension and Other Postretirement Plan Adjustments Amortization of prior service credit $ 2 $ 3 Insurance operating costs and other expenses Amortization of actuarial loss (13 ) (25 ) Insurance operating costs and other expenses (11 ) (22 ) Total before tax (2 ) (5 ) Income tax expense $ (9 ) $ (17 ) Net income Total amounts reclassified from AOCI $ 32 $ 42 Net income |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of Net Benefit Costs | Net Periodic Cost (Benefit) Pension Benefits Other Postretirement Benefits Three Months Ended June 30, Six months ended June 30, Three Months Ended June 30, Six months ended June 30, 2019 2018 2019 2018 2019 2018 2019 2018 Service cost $ 1 $ 1 $ 2 $ 2 $ — $ — $ — $ — Interest cost 40 36 79 71 2 1 4 3 Expected return on plan assets (56 ) (59 ) (113 ) (115 ) (1 ) (1 ) (2 ) (3 ) Amortization of prior service credit — — — — (2 ) (2 ) (3 ) (3 ) Amortization of actuarial loss 11 13 22 25 2 2 3 3 Net periodic cost (benefit) $ (4 ) $ (9 ) $ (10 ) $ (17 ) $ 1 $ — $ 2 $ — |
Business Disposition and Discon
Business Disposition and Discontinued Operations (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations | Cash Flows from Discontinued Operations Six Months Ended June 30, 2018 Net cash provided by operating activities from discontinued operations $ 603 Net cash provided by investing activities from discontinued operations $ 463 Net cash used in financing activities from discontinued operations [1] $ (737 ) Cash paid for interest $ — [1] Excludes return of capital to parent of $619 for the six months ended June 30, 2018. Reconciliation of the Major Line Items Constituting Pretax Profit (Loss) of Discontinued Operations Three Months Ended June 30, Six Months Ended June 30, 2018 2018 Revenues Earned premiums $ 12 $ 39 Fee income and other 150 382 Net investment income 207 519 Net realized capital losses (93 ) (72 ) Total revenues 276 868 Benefits, losses and expenses Benefits, losses and loss adjustment expenses 207 535 Amortization of DAC 17 58 Insurance operating costs and other expenses [1] 61 162 Total benefits, losses and expenses 285 755 Income (loss) before income taxes (9 ) 113 Income tax expense (benefit) (6 ) 9 Income (loss) from operations of discontinued operations, net of tax (3 ) 104 Net realized capital gain on disposal, net of tax 151 213 Income from discontinued operations, net of tax $ 148 $ 317 [1]Corporate allocated overhead has been included in continuing operations. |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Lease, Cost | Components of Lease Expense Three Months Ended June 30, Six Months Ended June 30, 2019 2019 Operating lease cost $ 12 $ 23 Short-term lease cost — 1 Variable lease cost — — Sublease income (1 ) (2 ) Total lease costs included in insurance operating costs and other expenses $ 11 $ 22 Supplemental Operating Lease Information June 30, 2019 Operating cash flows for operating leases (for the six months ended) $ 22 Weighted-average remaining lease term in years for operating leases 6 years Weighted-average discount rate for operating leases 3.6 % |
Future Minimum Lease Payments | Future Minimum Lease Payments As of June 30, 2019 2019 $ 27 2020 51 2021 40 2022 34 2023 31 Thereafter 68 Total future minimum lease payments 251 Less: Discount on lease payments to present value 25 Total lease liability $ 226 |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Details) - USD ($) $ / shares in Units, $ in Millions | May 23, 2019 | Jan. 01, 2019 | Jun. 30, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative Effect on Retained Earnings, before Tax | $ 1 | ||
Operating Leases, Future Minimum Payments Due | 160 | ||
Operating Lease, Right-of-Use Asset | 150 | $ 216 | |
Lease Incentive Receivable | $ 10 | ||
The Navigators Group, Inc. [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Business Acquisition, Share Price | $ 70 | ||
Business Combination, Consideration Transferred | $ 2,136 |
Business Acquisitions - Additio
Business Acquisitions - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | May 23, 2019 | Jun. 30, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 |
Business Acquisition [Line Items] | |||||||
Goodwill | $ 1,913 | $ 1,913 | $ 1,913 | $ 1,290 | |||
Revenues | 5,092 | $ 4,789 | 10,032 | $ 9,480 | |||
Net Income (Loss) Available to Common Stockholders, Basic | 372 | $ 582 | 997 | $ 1,179 | |||
The Navigators Group, Inc. [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Business Acquisition, Effective Date of Acquisition | May 23, 2019 | ||||||
Business Acquisition, Name of Acquired Entity | Navigators Group | ||||||
Business Acquisition, Share Price | $ 70 | ||||||
Payments to Acquire Businesses, Gross | $ 2,121 | ||||||
Business Combination, Consideration Transferred, Other | 23 | ||||||
Goodwill | 623 | ||||||
Revenues | 178 | ||||||
Net Income (Loss) Available to Common Stockholders, Basic | $ 141 | ||||||
Business Combination, Acquisition Related Costs | 15 | ||||||
The Navigators Group, Inc. [Member] | Cash [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Payments to Acquire Businesses, Gross | 2,098 | ||||||
Adverse Development Cover Navigators Group [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Reinsurance premium | 91 | ||||||
Reinsurance Retention Policy, Amount Retained | 68 | ||||||
Liability for Unpaid Claims and Claims Adjustment Expense, Incurred Claims | 97 | ||||||
Use of Retention Layer by Acquiree Prior to Acquisition | $ 32 | ||||||
Current accident year | 29 | ||||||
Policyholder Benefits and Claims Incurred, Ceded | 91 | ||||||
Adverse Development Cover Navigators Group [Member] | Remaining [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Reinsurance Retention Policy, Excess Retention, Amount Reinsured | 209 | ||||||
Adverse Development Cover Navigators Group [Member] | After tax [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Reinsurance premium | 72 | ||||||
Liability for Unpaid Claims and Claims Adjustment Expense, Incurred Claims | 77 | ||||||
Adverse Development Cover Navigators Group [Member] | Maximum [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Reinsurance Retention Policy, Excess Retention, Amount Reinsured | 300 | ||||||
Recorded by Acquiree Prior to Acquisition [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Current accident year | $ 52 | ||||||
Retention Layer Above Reserve for the Covered Liabilities as of the Inception Date [Member] | Adverse Development Cover Navigators Group [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Reinsurance Retention Policy, Amount Retained | 100 | ||||||
Retention Layer for Reserve for the Covered Liabilities as of the Inception Date [Member] | Adverse Development Cover Navigators Group [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Reinsurance Retention Policy, Amount Retained | $ 1,816 |
Business Acquisitions - Fair Va
Business Acquisitions - Fair Value of Assets Acquired and Liabilities Assumed at the Acquisition Date (Details) - USD ($) $ in Millions | Jun. 30, 2019 | May 23, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | |||
Goodwill | $ 1,913 | $ 1,290 | |
The Navigators Group, Inc. [Member] | |||
Business Acquisition [Line Items] | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents | $ 3,848 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Premiums Receivable | 492 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Reinsurance Recoverables | 1,100 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Prepaid Reinsurance Premiums | 238 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 580 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 83 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Prepaid Expense and Other Assets | 99 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | 6,440 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Unpaid Losses and Loss Adjustment Expenses | 2,823 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Deferred Revenue | 1,219 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt | 284 | ||
Business Combination Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Assets | 48 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Other | 568 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | 4,942 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | 1,498 | ||
Goodwill | 623 | ||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net | $ 2,121 |
Business Acquisitions - Intangi
Business Acquisitions - Intangible Assets Recorded in Connection with the Acquisition (Details) - The Navigators Group, Inc. [Member] $ in Millions | May 23, 2019USD ($) |
Business Acquisition [Line Items] | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 499 |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 10 years |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Indefinite-Lived Intangible Assets | $ 81 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 580 |
Lloyd's Syndicate Capacity [Member] | |
Business Acquisition [Line Items] | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Indefinite-Lived Intangible Assets | 66 |
License [Member] | |
Business Acquisition [Line Items] | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Indefinite-Lived Intangible Assets | 15 |
Contractual Rights [Member] | |
Business Acquisition [Line Items] | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 180 |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 1 year |
Distribution relationships [Member] | |
Business Acquisition [Line Items] | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 302 |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 15 years |
Trade Names [Member] | |
Business Acquisition [Line Items] | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 17 |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 10 years |
Business Acquisitions - Estimat
Business Acquisitions - Estimated Pre-tax Amortization Expense (Details) - The Navigators Group, Inc. [Member] $ in Millions | Jun. 30, 2019USD ($) |
Business Acquisition [Line Items] | |
Finite-Lived Intangible Assets, Amortization Expense, Remainder of Fiscal Year | $ 11 |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 22 |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 22 |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 22 |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 22 |
Contractual Rights [Member] | |
Business Acquisition [Line Items] | |
Finite-Lived Intangible Assets, Amortization Expense, Remainder of Fiscal Year | 84 |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 47 |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 21 |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 9 |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | $ 0 |
Business Acquisitions - Pro For
Business Acquisitions - Pro Forma Results (Details) - The Navigators Group, Inc. [Member] - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Business Acquisition [Line Items] | ||
Business Acquisition, Pro Forma Revenue | $ 10,708 | $ 10,185 |
Business Acquisition, Pro Forma Net Income (Loss) | $ 997 | $ 1,235 |
Earnings (Loss) Per Common Sh_2
Earnings (Loss) Per Common Share - Computation of Basic and Diluted Earnings Per Common Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Earnings | ||||
Income from continuing operations, net of tax | $ 372 | $ 434 | $ 1,002 | $ 862 |
Less: Preferred stock dividends | 0 | 0 | 5 | 0 |
Income from discontinued operations, net of tax, available to common stockholders | 372 | 434 | 997 | 862 |
Income from discontinued operations, net of tax, available to common stockholders | 0 | 148 | 0 | 317 |
Net income available to common stockholders | $ 372 | $ 582 | $ 997 | $ 1,179 |
Shares | ||||
Weighted average common shares outstanding, basic | 361.4 | 358.3 | 360.7 | 357.9 |
Dilutive effect of stock-based awards under compensation plans | 3.2 | 4 | 3.3 | 4.2 |
Dilutive effect of warrants [1] | 0.5 | 1.9 | 0.9 | 2 |
Weighted average common shares outstanding and dilutive potential common shares | 365.1 | 364.2 | 364.9 | 364.1 |
Earnings Per Share, Basic [Abstract] | ||||
Income from continuing operations, net of tax, available to common stockholders | $ 1.03 | $ 1.21 | $ 2.76 | $ 2.41 |
Income from discontinued operations, net of tax, available to common stockholders | 0 | 0.41 | 0 | 0.88 |
Net income available to common stockholders | 1.03 | 1.62 | 2.76 | 3.29 |
Earnings Per Share, Diluted [Abstract] | ||||
Income from continuing operations, net of tax, available to common stockholders | 1.02 | 1.19 | 2.73 | 2.37 |
Income from discontinued operations, net of tax, available to common stockholders | 0 | 0.41 | 0 | 0.87 |
Net income available to common stockholders | $ 1.02 | $ 1.60 | $ 2.73 | $ 3.24 |
Segment Information - Additiona
Segment Information - Additional Information (Details) | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Number of Reportable Segments | 5 |
Segment Information - Net Incom
Segment Information - Net Income (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Net income | $ 372 | $ 582 | $ 1,002 | $ 1,179 |
Dividends declared on preferred stock | 0 | 0 | 5 | 0 |
Net income available to common stockholders | 372 | 582 | 997 | 1,179 |
Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Net income | (43) | 66 | (43) | 171 |
Property and Casualty, Commercial Insurance Product Line [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net income | 191 | 372 | 554 | 670 |
Property and Casualty, Personal Insurance Product Line [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net income | 62 | 6 | 158 | 95 |
Property & Casualty Other Operations | ||||
Segment Reporting Information [Line Items] | ||||
Net income | 11 | 5 | 34 | 22 |
Group Insurance Policies [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net income | 113 | 96 | 231 | 150 |
Mutual Fund [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net income | $ 38 | $ 37 | $ 68 | $ 71 |
Segment Information - Revenues
Segment Information - Revenues (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Earned premiums and fee income | $ 4,492 | $ 4,285 | $ 8,746 | $ 8,535 |
Net investment income | 488 | 428 | 958 | 879 |
Realized Investment Gains (Losses) | 80 | 52 | 243 | 22 |
Other revenues | 32 | 24 | 85 | 44 |
Total revenues | 5,092 | 4,789 | 10,032 | 9,480 |
Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Earned premiums and fee income | 12 | 4 | 25 | 6 |
Property and Casualty, Commercial Insurance Product Line [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Earned premiums and fee income | 1,996 | 1,753 | 3,782 | 3,473 |
Property and Casualty, Commercial Insurance Product Line [Member] | Workers’ compensation | ||||
Segment Reporting Information [Line Items] | ||||
Earned premiums and fee income | 832 | 832 | 1,656 | 1,650 |
Property and Casualty, Commercial Insurance Product Line [Member] | Liability | ||||
Segment Reporting Information [Line Items] | ||||
Earned premiums and fee income | 233 | 159 | 401 | 310 |
Property and Casualty, Commercial Insurance Product Line [Member] | Marine | ||||
Segment Reporting Information [Line Items] | ||||
Earned premiums and fee income | 27 | 0 | 27 | 0 |
Property and Casualty, Commercial Insurance Product Line [Member] | Package business | ||||
Segment Reporting Information [Line Items] | ||||
Earned premiums and fee income | 365 | 338 | 717 | 670 |
Property and Casualty, Commercial Insurance Product Line [Member] | Property | ||||
Segment Reporting Information [Line Items] | ||||
Earned premiums and fee income | 175 | 152 | 331 | 302 |
Property and Casualty, Commercial Insurance Product Line [Member] | Professional liability | ||||
Segment Reporting Information [Line Items] | ||||
Earned premiums and fee income | 98 | 63 | 166 | 125 |
Property and Casualty, Commercial Insurance Product Line [Member] | Bond | ||||
Segment Reporting Information [Line Items] | ||||
Earned premiums and fee income | 65 | 61 | 125 | 119 |
Property and Casualty, Commercial Insurance Product Line [Member] | Assumed Reinsurance | ||||
Segment Reporting Information [Line Items] | ||||
Earned premiums and fee income | 29 | 0 | 29 | 0 |
Property and Casualty, Commercial Insurance Product Line [Member] | Automobile | ||||
Segment Reporting Information [Line Items] | ||||
Earned premiums and fee income | 172 | 148 | 330 | 297 |
Property and Casualty, Personal Insurance Product Line [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Earned premiums and fee income | 811 | 866 | 1,619 | 1,735 |
Property and Casualty, Personal Insurance Product Line [Member] | AARP Members [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Earned premiums and fee income | 726 | 758 | 1,400 | 1,500 |
Property and Casualty, Personal Insurance Product Line [Member] | Property | ||||
Segment Reporting Information [Line Items] | ||||
Earned premiums and fee income | 246 | 262 | 493 | 524 |
Property and Casualty, Personal Insurance Product Line [Member] | Automobile | ||||
Segment Reporting Information [Line Items] | ||||
Earned premiums and fee income | 565 | 604 | 1,126 | 1,211 |
Group Insurance Policies [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Earned premiums and fee income | 1,422 | 1,401 | 2,831 | 2,802 |
Group Insurance Policies [Member] | Group disability | ||||
Segment Reporting Information [Line Items] | ||||
Earned premiums and fee income | 723 | 690 | 1,427 | 1,367 |
Group Insurance Policies [Member] | Group life | ||||
Segment Reporting Information [Line Items] | ||||
Earned premiums and fee income | 638 | 652 | 1,281 | 1,316 |
Group Insurance Policies [Member] | Other | ||||
Segment Reporting Information [Line Items] | ||||
Earned premiums and fee income | 61 | 59 | 123 | 119 |
Mutual Fund [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Earned premiums and fee income | 251 | 261 | 489 | 519 |
Mutual Fund [Member] | Third party retail customers [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Earned premiums and fee income | 227 | 236 | 443 | 468 |
Mutual Fund [Member] | Talcott Resolution [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Earned premiums and fee income | $ 24 | $ 25 | $ 46 | $ 51 |
Segment Information - Non-insur
Segment Information - Non-insurance Revenue from Customers (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Insurance Commissions and Fees | $ 326 | $ 327 | $ 640 | $ 650 |
Other revenues | 32 | 24 | 85 | 44 |
Non-insurance revenues with customers | 354 | 352 | 694 | 694 |
Installment billing fees [Member] | Operating Segments [Member] | Property and Casualty, Commercial Insurance Product Line [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Insurance Commissions and Fees | 9 | 8 | 18 | 17 |
Installment billing fees [Member] | Operating Segments [Member] | Property and Casualty, Personal Insurance Product Line [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Insurance Commissions and Fees | 10 | 10 | 19 | 20 |
Insurance servicing fees [Member] | Operating Segments [Member] | Property and Casualty, Personal Insurance Product Line [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Other revenues | 23 | 23 | 42 | 42 |
Administrative services fees [Member] | Operating Segments [Member] | Group Insurance Policies [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Insurance Commissions and Fees | 45 | 44 | 90 | 88 |
Advisor, distribution and other management fees [Member] | Operating Segments [Member] | Mutual Fund [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Insurance Commissions and Fees | 228 | 239 | 446 | 477 |
Other fees [Member] | Operating Segments [Member] | Mutual Fund [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Insurance Commissions and Fees | 22 | 22 | 43 | 42 |
Investment management and other fees [Member] | Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Insurance Commissions and Fees | $ 11 | $ 4 | $ 24 | $ 6 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value by Hierarchy (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Assets accounted for at fair value on a recurring basis | ||
Debt Securities, Available-for-sale | $ 41,166 | $ 35,652 |
Fixed maturities, FVO | 49 | 22 |
Equity securities, at fair value | 1,533 | 1,214 |
Derivative assets | 11 | 7 |
Short-term investments | 2,364 | 4,283 |
Total assets accounted for at fair value on a recurring basis | 45,123 | 41,178 |
Liabilities accounted for at fair value on a recurring basis | ||
Derivative liabilities | (71) | (68) |
Contingent consideration | (21) | (35) |
Total liabilities accounted for at fair value on a recurring basis | (92) | (103) |
Credit derivatives | ||
Assets accounted for at fair value on a recurring basis | ||
Derivative assets | 9 | 5 |
Liabilities accounted for at fair value on a recurring basis | ||
Derivative liabilities | 1 | (2) |
Equity derivatives | ||
Assets accounted for at fair value on a recurring basis | ||
Derivative assets | 1 | 3 |
Liabilities accounted for at fair value on a recurring basis | ||
Derivative liabilities | (4) | 1 |
Foreign exchange derivatives | ||
Assets accounted for at fair value on a recurring basis | ||
Derivative assets | (2) | |
Liabilities accounted for at fair value on a recurring basis | ||
Derivative liabilities | (5) | (5) |
Interest rate derivatives | ||
Assets accounted for at fair value on a recurring basis | ||
Derivative assets | 1 | 1 |
Liabilities accounted for at fair value on a recurring basis | ||
Derivative liabilities | (63) | (62) |
Asset-backed-securities (ABS) | ||
Assets accounted for at fair value on a recurring basis | ||
Debt Securities, Available-for-sale | 1,029 | 1,276 |
Collateralized loan obligations (CLOs) | ||
Assets accounted for at fair value on a recurring basis | ||
Debt Securities, Available-for-sale | 1,925 | 1,437 |
CMBS | ||
Assets accounted for at fair value on a recurring basis | ||
Debt Securities, Available-for-sale | 3,905 | 3,552 |
Corporate | ||
Assets accounted for at fair value on a recurring basis | ||
Debt Securities, Available-for-sale | 16,748 | 13,398 |
Foreign government/government agencies | ||
Assets accounted for at fair value on a recurring basis | ||
Debt Securities, Available-for-sale | 1,072 | 847 |
Municipal | ||
Assets accounted for at fair value on a recurring basis | ||
Debt Securities, Available-for-sale | 10,278 | 10,346 |
Residential mortgage-backed securities (RMBS) | ||
Assets accounted for at fair value on a recurring basis | ||
Debt Securities, Available-for-sale | 4,566 | 3,279 |
U.S. Treasuries | ||
Assets accounted for at fair value on a recurring basis | ||
Debt Securities, Available-for-sale | 1,643 | 1,517 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets accounted for at fair value on a recurring basis | ||
Debt Securities, Available-for-sale | 282 | 330 |
Fixed maturities, FVO | 0 | 0 |
Equity securities, at fair value | 1,227 | 1,093 |
Derivative assets | 0 | |
Short-term investments | 929 | 1,039 |
Total assets accounted for at fair value on a recurring basis | 2,438 | 2,462 |
Liabilities accounted for at fair value on a recurring basis | ||
Derivative liabilities | 0 | 0 |
Contingent consideration | 0 | 0 |
Total liabilities accounted for at fair value on a recurring basis | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Credit derivatives | ||
Assets accounted for at fair value on a recurring basis | ||
Derivative assets | 0 | 0 |
Liabilities accounted for at fair value on a recurring basis | ||
Derivative liabilities | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Equity derivatives | ||
Assets accounted for at fair value on a recurring basis | ||
Derivative assets | 0 | 0 |
Liabilities accounted for at fair value on a recurring basis | ||
Derivative liabilities | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Foreign exchange derivatives | ||
Assets accounted for at fair value on a recurring basis | ||
Derivative assets | 0 | |
Liabilities accounted for at fair value on a recurring basis | ||
Derivative liabilities | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Interest rate derivatives | ||
Assets accounted for at fair value on a recurring basis | ||
Derivative assets | 0 | 0 |
Liabilities accounted for at fair value on a recurring basis | ||
Derivative liabilities | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Asset-backed-securities (ABS) | ||
Assets accounted for at fair value on a recurring basis | ||
Debt Securities, Available-for-sale | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Collateralized loan obligations (CLOs) | ||
Assets accounted for at fair value on a recurring basis | ||
Debt Securities, Available-for-sale | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | CMBS | ||
Assets accounted for at fair value on a recurring basis | ||
Debt Securities, Available-for-sale | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate | ||
Assets accounted for at fair value on a recurring basis | ||
Debt Securities, Available-for-sale | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Foreign government/government agencies | ||
Assets accounted for at fair value on a recurring basis | ||
Debt Securities, Available-for-sale | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Municipal | ||
Assets accounted for at fair value on a recurring basis | ||
Debt Securities, Available-for-sale | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Residential mortgage-backed securities (RMBS) | ||
Assets accounted for at fair value on a recurring basis | ||
Debt Securities, Available-for-sale | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Treasuries | ||
Assets accounted for at fair value on a recurring basis | ||
Debt Securities, Available-for-sale | 282 | 330 |
Significant Observable Inputs (Level 2) | ||
Assets accounted for at fair value on a recurring basis | ||
Debt Securities, Available-for-sale | 39,229 | 33,757 |
Fixed maturities, FVO | 49 | 22 |
Equity securities, at fair value | 234 | 44 |
Derivative assets | 10 | 4 |
Short-term investments | 1,435 | 3,244 |
Total assets accounted for at fair value on a recurring basis | 40,957 | 37,071 |
Liabilities accounted for at fair value on a recurring basis | ||
Derivative liabilities | (67) | (69) |
Contingent consideration | 0 | 0 |
Total liabilities accounted for at fair value on a recurring basis | (67) | (69) |
Significant Observable Inputs (Level 2) | Credit derivatives | ||
Assets accounted for at fair value on a recurring basis | ||
Derivative assets | 9 | 5 |
Liabilities accounted for at fair value on a recurring basis | ||
Derivative liabilities | 1 | (2) |
Significant Observable Inputs (Level 2) | Equity derivatives | ||
Assets accounted for at fair value on a recurring basis | ||
Derivative assets | 0 | 0 |
Liabilities accounted for at fair value on a recurring basis | ||
Derivative liabilities | 0 | 1 |
Significant Observable Inputs (Level 2) | Foreign exchange derivatives | ||
Assets accounted for at fair value on a recurring basis | ||
Derivative assets | (2) | |
Liabilities accounted for at fair value on a recurring basis | ||
Derivative liabilities | (5) | (5) |
Significant Observable Inputs (Level 2) | Interest rate derivatives | ||
Assets accounted for at fair value on a recurring basis | ||
Derivative assets | 1 | 1 |
Liabilities accounted for at fair value on a recurring basis | ||
Derivative liabilities | (63) | (63) |
Significant Observable Inputs (Level 2) | Asset-backed-securities (ABS) | ||
Assets accounted for at fair value on a recurring basis | ||
Debt Securities, Available-for-sale | 1,024 | 1,266 |
Significant Observable Inputs (Level 2) | Collateralized loan obligations (CLOs) | ||
Assets accounted for at fair value on a recurring basis | ||
Debt Securities, Available-for-sale | 1,639 | 1,337 |
Significant Observable Inputs (Level 2) | CMBS | ||
Assets accounted for at fair value on a recurring basis | ||
Debt Securities, Available-for-sale | 3,870 | 3,540 |
Significant Observable Inputs (Level 2) | Corporate | ||
Assets accounted for at fair value on a recurring basis | ||
Debt Securities, Available-for-sale | 16,180 | 12,878 |
Significant Observable Inputs (Level 2) | Foreign government/government agencies | ||
Assets accounted for at fair value on a recurring basis | ||
Debt Securities, Available-for-sale | 1,069 | 844 |
Significant Observable Inputs (Level 2) | Municipal | ||
Assets accounted for at fair value on a recurring basis | ||
Debt Securities, Available-for-sale | 10,278 | 10,346 |
Significant Observable Inputs (Level 2) | Residential mortgage-backed securities (RMBS) | ||
Assets accounted for at fair value on a recurring basis | ||
Debt Securities, Available-for-sale | 3,808 | 2,359 |
Significant Observable Inputs (Level 2) | U.S. Treasuries | ||
Assets accounted for at fair value on a recurring basis | ||
Debt Securities, Available-for-sale | 1,361 | 1,187 |
Significant Unobservable Inputs (Level 3) | ||
Assets accounted for at fair value on a recurring basis | ||
Debt Securities, Available-for-sale | 1,655 | 1,565 |
Fixed maturities, FVO | 0 | 0 |
Equity securities, at fair value | 72 | 77 |
Derivative assets | 1 | 3 |
Short-term investments | 0 | 0 |
Total assets accounted for at fair value on a recurring basis | 1,728 | 1,645 |
Liabilities accounted for at fair value on a recurring basis | ||
Derivative liabilities | (4) | 1 |
Contingent consideration | (21) | (35) |
Total liabilities accounted for at fair value on a recurring basis | (25) | (34) |
Significant Unobservable Inputs (Level 3) | Credit derivatives | ||
Assets accounted for at fair value on a recurring basis | ||
Derivative assets | 0 | 0 |
Liabilities accounted for at fair value on a recurring basis | ||
Derivative liabilities | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Equity derivatives | ||
Assets accounted for at fair value on a recurring basis | ||
Derivative assets | 1 | 3 |
Liabilities accounted for at fair value on a recurring basis | ||
Derivative liabilities | (4) | 0 |
Significant Unobservable Inputs (Level 3) | Foreign exchange derivatives | ||
Assets accounted for at fair value on a recurring basis | ||
Derivative assets | 0 | |
Liabilities accounted for at fair value on a recurring basis | ||
Derivative liabilities | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Interest rate derivatives | ||
Assets accounted for at fair value on a recurring basis | ||
Derivative assets | 0 | 0 |
Liabilities accounted for at fair value on a recurring basis | ||
Derivative liabilities | 0 | 1 |
Significant Unobservable Inputs (Level 3) | Asset-backed-securities (ABS) | ||
Assets accounted for at fair value on a recurring basis | ||
Debt Securities, Available-for-sale | 5 | 10 |
Significant Unobservable Inputs (Level 3) | Collateralized loan obligations (CLOs) | ||
Assets accounted for at fair value on a recurring basis | ||
Debt Securities, Available-for-sale | 286 | 100 |
Significant Unobservable Inputs (Level 3) | CMBS | ||
Assets accounted for at fair value on a recurring basis | ||
Debt Securities, Available-for-sale | 35 | 12 |
Significant Unobservable Inputs (Level 3) | Corporate | ||
Assets accounted for at fair value on a recurring basis | ||
Debt Securities, Available-for-sale | 568 | 520 |
Significant Unobservable Inputs (Level 3) | Foreign government/government agencies | ||
Assets accounted for at fair value on a recurring basis | ||
Debt Securities, Available-for-sale | 3 | 3 |
Significant Unobservable Inputs (Level 3) | Municipal | ||
Assets accounted for at fair value on a recurring basis | ||
Debt Securities, Available-for-sale | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Residential mortgage-backed securities (RMBS) | ||
Assets accounted for at fair value on a recurring basis | ||
Debt Securities, Available-for-sale | 758 | 920 |
Significant Unobservable Inputs (Level 3) | U.S. Treasuries | ||
Assets accounted for at fair value on a recurring basis | ||
Debt Securities, Available-for-sale | 0 | 0 |
Fair Value Measured at Net Asset Value Per Share [Member] | ||
Liabilities accounted for at fair value on a recurring basis | ||
Deposit Assets | $ 49 | $ 0 |
Fair Value Measurements - Signi
Fair Value Measurements - Significant Unobservable Inputs Securities (Details) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019USD ($) | Dec. 31, 2018USD ($) | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Debt Securities, Available-for-sale | $ 41,166 | $ 35,652 |
CMBS | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Debt Securities, Available-for-sale | 3,905 | 3,552 |
Corporate | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Debt Securities, Available-for-sale | 16,748 | 13,398 |
RMBS | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Debt Securities, Available-for-sale | 4,566 | 3,279 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Debt Securities, Available-for-sale | 1,655 | 1,565 |
Significant Unobservable Inputs (Level 3) | CMBS | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Debt Securities, Available-for-sale | 35 | 12 |
Significant Unobservable Inputs (Level 3) | Corporate | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Debt Securities, Available-for-sale | 568 | 520 |
Significant Unobservable Inputs (Level 3) | RMBS | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Debt Securities, Available-for-sale | 758 | 920 |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) | Collateralized Loan Obligations [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Debt Securities, Available-for-sale | $ 236 | |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) | Collateralized Loan Obligations [Member] | Measurement Input, Credit Spread [Member] | Minimum | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Servicing Asset, Measurement Input | 2.50 | |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) | Collateralized Loan Obligations [Member] | Measurement Input, Credit Spread [Member] | Maximum | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Servicing Asset, Measurement Input | 2.57 | |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) | Collateralized Loan Obligations [Member] | Measurement Input, Credit Spread [Member] | Weighted Average [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Servicing Asset, Measurement Input | 2.53 | |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) | CMBS | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Debt Securities, Available-for-sale | $ 25 | $ 2 |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) | CMBS | Measurement Input, Credit Spread [Member] | Minimum | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Servicing Asset, Measurement Input | 0.09 | 0.09 |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) | CMBS | Measurement Input, Credit Spread [Member] | Maximum | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Servicing Asset, Measurement Input | 12.79 | 10.40 |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) | CMBS | Measurement Input, Credit Spread [Member] | Weighted Average [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Servicing Asset, Measurement Input | 1.89 | 1.82 |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) | Corporate | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Debt Securities, Available-for-sale | $ 387 | $ 274 |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) | Corporate | Measurement Input, Credit Spread [Member] | Minimum | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Servicing Asset, Measurement Input | 1.17 | 1.45 |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) | Corporate | Measurement Input, Credit Spread [Member] | Maximum | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Servicing Asset, Measurement Input | 7.10 | 11.75 |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) | Corporate | Measurement Input, Credit Spread [Member] | Weighted Average [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Servicing Asset, Measurement Input | 2.54 | 2.63 |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) | RMBS | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Debt Securities, Available-for-sale | $ 710 | $ 815 |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) | RMBS | Measurement Input, Credit Spread [Member] | Minimum | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Servicing Asset, Measurement Input | 0.09 | 0.12 |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) | RMBS | Measurement Input, Credit Spread [Member] | Maximum | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Servicing Asset, Measurement Input | 4.16 | 2.15 |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) | RMBS | Measurement Input, Credit Spread [Member] | Weighted Average [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Servicing Asset, Measurement Input | 0.70 | 0.86 |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) | RMBS | Measurement Input, Constant Prepayment Rate [Member] | Minimum | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Constant prepayment rate [6] | 1.00% | 1.00% |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) | RMBS | Measurement Input, Constant Prepayment Rate [Member] | Maximum | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Constant prepayment rate [6] | 13.00% | 15.00% |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) | RMBS | Measurement Input, Constant Prepayment Rate [Member] | Weighted Average [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Constant prepayment rate [6] | 6.00% | 6.00% |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) | RMBS | Measurement Input, Default Rate [Member] | Minimum | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Constant default rate [6] | 1.00% | 1.00% |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) | RMBS | Measurement Input, Default Rate [Member] | Maximum | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Constant default rate [6] | 6.00% | 8.00% |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) | RMBS | Measurement Input, Default Rate [Member] | Weighted Average [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Constant default rate [6] | 3.00% | 3.00% |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) | RMBS | Measurement Input, Loss Severity [Member] | Minimum | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Constant default rate [6] | 0.00% | 0.00% |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) | RMBS | Measurement Input, Loss Severity [Member] | Maximum | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Constant default rate [6] | 100.00% | 100.00% |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) | RMBS | Measurement Input, Loss Severity [Member] | Weighted Average [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Constant default rate [6] | 65.00% | 61.00% |
Fair Value Measurements - Sig_2
Fair Value Measurements - Significant Unobservable Inputs Freestanding Derivatives (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Servicing Asset at Fair Value, Changes in Fair Value Resulting from Changes in Valuation Inputs | $ 0 | ||
Equity options | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Derivative Assets (Liabilities), at Fair Value, Net | $ (3) | $ (3) | $ 3 |
Interest rate swaptions [3] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Derivative Assets (Liabilities), at Fair Value, Net | $ 1 | ||
Interest rate swaptions [3] | Minimum | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Fair Value Measurements, Unobservable Swap_Curve | 3.00% | ||
Interest rate swaptions [3] | Maximum | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Fair Value Measurements, Unobservable Swap_Curve | 3.00% | ||
Interest rate swaptions [3] | Weighted Average [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Fair Value Measurements, Unobservable Swap_Curve | 3.00% | ||
Measurement Input, Option Volatility [Member] | Equity options | Minimum | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Fair Value Measurements, Unobservable Swap_Curve | 12.00% | 19.00% | |
Measurement Input, Option Volatility [Member] | Equity options | Maximum | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Fair Value Measurements, Unobservable Swap_Curve | 22.00% | 21.00% | |
Measurement Input, Option Volatility [Member] | Equity options | Weighted Average [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Fair Value Measurements, Unobservable Swap_Curve | 15.00% | 20.00% |
Fair Value Measurements - Conti
Fair Value Measurements - Contingent Consideration (Details) - USD ($) $ in Millions | Jul. 29, 2016 | Jun. 30, 2019 | Jun. 30, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Contingent Consideration Commission payable | $ 43 | $ 43 | |
Business Combination, Contingent Consideration, Liability, Current | 20 | 20 | |
Contingent Consideration basis | 2,500 | ||
Liability [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Contingent Consideration Commission payable | $ 23 | 23 | |
Assets [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Contingent Consideration basis | $ 4,300 | ||
Lattice | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Contingent Consideration | $ 60 | ||
Contingent Consideration Payment Period | 4 years | ||
Lattice | Contingent Obligations | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Discount Rate | 12.70% |
Fair Value Measurements - Fai_2
Fair Value Measurements - Fair Value Recurring Basis, Unobservable Input (Details) - Significant Unobservable Inputs (Level 3) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Liabilities | ||||
Changes in Unrealized Gain/(Loss) Included in Net Income, Liabilities | $ 2 | $ 4 | $ 6 | $ 2 |
Contingent Consideration | ||||
Liabilities | ||||
Changes in Unrealized Gain/(Loss) Included in Net Income, Liabilities | (2) | 4 | 6 | 2 |
Fair Value, Measurements, Recurring | ||||
Assets | ||||
Beginning balance | 1,508 | 1,987 | 1,646 | 2,030 |
Total realized/unrealized gains (losses), Included in net income | (4) | (1) | (8) | 31 |
Total realized/unrealized gains (losses), Included in OCI | 2 | (10) | 8 | (16) |
Purchases | 383 | 289 | 504 | 477 |
Settlements | (73) | (114) | (131) | (212) |
Sales | (44) | (22) | (118) | (86) |
Transfers into Level 3 | 34 | 18 | 46 | 18 |
Transfers out of Level 3 | (82) | (126) | (223) | (221) |
Ending balance | 1,724 | 2,021 | 1,724 | 2,021 |
Freestanding Derivatives, net | ||||
Beginning balance | 1 | 3 | 4 | 2 |
Total realized/unrealized gains (losses), Included in net income | (4) | (1) | (7) | 2 |
Total realized/unrealized gains (losses), Included in OCI | 0 | 0 | 0 | 0 |
Purchases | 0 | 1 | 0 | 1 |
Settlements | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | (2) |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Ending balance | (3) | 3 | (3) | 3 |
Fair Value, Measurements, Recurring | Contingent Consideration | ||||
Liabilities | ||||
Beginning balance | (29) | (27) | (35) | (29) |
Changes in Unrealized Gain/(Loss) Included in Net Income, Liabilities | 2 | 4 | 6 | 2 |
Total realized/unrealized gains (losses), Included in OCI | 0 | 0 | 0 | 0 |
Purchases | 0 | 0 | 0 | 0 |
Settlements | 10 | 0 | (20) | 0 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Sales | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Ending balance | (21) | (31) | (21) | (31) |
Fair Value, Measurements, Recurring | Equity | ||||
Freestanding Derivatives, net | ||||
Beginning balance | 1 | 1 | 3 | 1 |
Total realized/unrealized gains (losses), Included in net income | (4) | (1) | (6) | 1 |
Total realized/unrealized gains (losses), Included in OCI | 0 | 0 | 0 | 0 |
Purchases | 0 | 1 | 0 | 1 |
Settlements | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | (2) |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Ending balance | (3) | 1 | (3) | 1 |
Fair Value, Measurements, Recurring | Interest rate derivatives | ||||
Freestanding Derivatives, net | ||||
Beginning balance | 2 | 1 | 1 | |
Total realized/unrealized gains (losses), Included in net income | 0 | (1) | 1 | |
Total realized/unrealized gains (losses), Included in OCI | 0 | 0 | 0 | |
Purchases | 0 | 0 | 0 | |
Settlements | 0 | 0 | 0 | |
Sales | 0 | 0 | 0 | |
Transfers into Level 3 | 0 | 0 | 0 | |
Transfers out of Level 3 | 0 | 0 | 0 | |
Ending balance | 0 | 2 | 0 | 2 |
Fair Value, Measurements, Recurring | Securities available-for-sale and other | Total fixed maturities, FVO | ||||
Assets | ||||
Beginning balance | 1,434 | 1,919 | 1,565 | 1,952 |
Total realized/unrealized gains (losses), Included in net income | 0 | 0 | 0 | 1 |
Total realized/unrealized gains (losses), Included in OCI | 2 | (11) | 8 | (17) |
Purchases | 379 | 287 | 495 | 475 |
Settlements | (73) | (114) | (131) | (212) |
Sales | (39) | (21) | (105) | (44) |
Transfers into Level 3 | 34 | 18 | 46 | 18 |
Transfers out of Level 3 | (82) | (126) | (223) | (221) |
Ending balance | 1,655 | 1,952 | 1,655 | 1,952 |
Fair Value, Measurements, Recurring | Securities available-for-sale and other | ABS | Total fixed maturities, FVO | ||||
Assets | ||||
Beginning balance | 9 | 14 | 10 | 19 |
Total realized/unrealized gains (losses), Included in net income | 0 | 0 | 0 | 0 |
Total realized/unrealized gains (losses), Included in OCI | 0 | 0 | 0 | 0 |
Purchases | 5 | 50 | 5 | 50 |
Settlements | 0 | (1) | (1) | (3) |
Sales | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 3 | 0 | 3 |
Transfers out of Level 3 | (9) | (9) | (9) | (12) |
Ending balance | 5 | 57 | 5 | 57 |
Fair Value, Measurements, Recurring | Securities available-for-sale and other | CLOs | Total fixed maturities, FVO | ||||
Assets | ||||
Beginning balance | 114 | 106 | 100 | 95 |
Total realized/unrealized gains (losses), Included in net income | 0 | 0 | 0 | 0 |
Total realized/unrealized gains (losses), Included in OCI | 0 | 0 | ||
Purchases | 202 | 77 | 237 | 98 |
Settlements | (10) | 0 | (10) | 0 |
Sales | 0 | (4) | (6) | (4) |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | (20) | (20) | (35) | (30) |
Ending balance | 286 | 159 | 286 | 159 |
Fair Value, Measurements, Recurring | Securities available-for-sale and other | CMBS | Total fixed maturities, FVO | ||||
Assets | ||||
Beginning balance | 12 | 33 | 12 | 69 |
Total realized/unrealized gains (losses), Included in net income | 0 | 0 | 0 | 0 |
Total realized/unrealized gains (losses), Included in OCI | 0 | 0 | 1 | (1) |
Purchases | 24 | 25 | 24 | 25 |
Settlements | (1) | (2) | (2) | (3) |
Sales | 0 | (8) | 0 | (8) |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | (20) | 0 | (54) |
Ending balance | 35 | 28 | 35 | 28 |
Fair Value, Measurements, Recurring | Securities available-for-sale and other | Corporate | Total fixed maturities, FVO | ||||
Assets | ||||
Beginning balance | 525 | 515 | 520 | 520 |
Total realized/unrealized gains (losses), Included in net income | 0 | 0 | (1) | 1 |
Total realized/unrealized gains (losses), Included in OCI | 2 | (7) | 9 | (8) |
Purchases | 58 | 66 | 95 | 131 |
Settlements | (4) | (18) | (6) | (32) |
Sales | (39) | (8) | (64) | (31) |
Transfers into Level 3 | 34 | 15 | 46 | 15 |
Transfers out of Level 3 | (8) | (4) | (31) | (37) |
Ending balance | 568 | 559 | 568 | 559 |
Fair Value, Measurements, Recurring | Securities available-for-sale and other | Foreign government/government agencies | Total fixed maturities, FVO | ||||
Assets | ||||
Beginning balance | 3 | 2 | 3 | 2 |
Total realized/unrealized gains (losses), Included in net income | 0 | 0 | 0 | 0 |
Total realized/unrealized gains (losses), Included in OCI | 0 | 0 | 0 | 0 |
Purchases | 0 | 1 | 0 | 1 |
Settlements | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Ending balance | 3 | 3 | 3 | 3 |
Fair Value, Measurements, Recurring | Securities available-for-sale and other | Municipal | Total fixed maturities, FVO | ||||
Assets | ||||
Beginning balance | 16 | 17 | ||
Total realized/unrealized gains (losses), Included in net income | 0 | 0 | ||
Total realized/unrealized gains (losses), Included in OCI | 0 | (1) | ||
Purchases | 0 | 0 | ||
Settlements | 0 | 0 | ||
Sales | 0 | 0 | ||
Transfers into Level 3 | 0 | 0 | ||
Transfers out of Level 3 | (7) | (7) | ||
Ending balance | 9 | 9 | ||
Fair Value, Measurements, Recurring | Securities available-for-sale and other | RMBS | Total fixed maturities, FVO | ||||
Assets | ||||
Beginning balance | 771 | 1,233 | 920 | 1,230 |
Total realized/unrealized gains (losses), Included in net income | 0 | 0 | 1 | 0 |
Total realized/unrealized gains (losses), Included in OCI | 0 | (4) | (2) | (7) |
Purchases | 90 | 68 | 134 | 170 |
Settlements | (58) | (93) | (112) | (174) |
Sales | 0 | (1) | (35) | (1) |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | (45) | (66) | (148) | (81) |
Ending balance | 758 | 1,137 | 758 | 1,137 |
Equity Securities, at fair value | Fair Value, Measurements, Recurring | Equity Securities, at fair value | ||||
Assets | ||||
Beginning balance | 73 | 77 | ||
Total realized/unrealized gains (losses), Included in net income | 0 | (1) | ||
Total realized/unrealized gains (losses), Included in OCI | 0 | 0 | ||
Purchases | 4 | 9 | ||
Settlements | 0 | 0 | ||
Sales | (5) | (13) | ||
Transfers into Level 3 | 0 | 0 | ||
Transfers out of Level 3 | 0 | 0 | ||
Ending balance | $ 72 | $ 72 | ||
Equity Securities, at fair value | Fair Value, Measurements, Recurring | Securities available-for-sale and other | ||||
Assets | ||||
Beginning balance | 65 | 76 | ||
Total realized/unrealized gains (losses), Included in net income | 0 | 28 | ||
Total realized/unrealized gains (losses), Included in OCI | 1 | 1 | ||
Purchases | 1 | 1 | ||
Settlements | 0 | 0 | ||
Sales | (1) | (40) | ||
Transfers into Level 3 | 0 | 0 | ||
Transfers out of Level 3 | 0 | 0 | ||
Ending balance | $ 66 | $ 66 |
Fair Value Measurements - Chang
Fair Value Measurements - Changes in Unrealized Gains (Losses) Included in Net Income for Financial Instruments Classified as Level 3 Still Held at Year End (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Changes in Unrealized Gain/(Loss) Included in Net Income, Assets | $ (4) | $ (1) | $ (8) | $ 1 |
Other Comprehensive Income (Loss) [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Changes in Unrealized Gain/(Loss) Included in Net Income, Assets | 2 | (11) | 8 | (15) |
Significant Unobservable Inputs (Level 3) | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Changes in Unrealized Gain/(Loss) Included in Net Income, Liabilities | (2) | (4) | (6) | (2) |
Significant Unobservable Inputs (Level 3) | Contingent Consideration | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Changes in Unrealized Gain/(Loss) Included in Net Income, Liabilities | 2 | (4) | (6) | (2) |
Significant Unobservable Inputs (Level 3) | Other Comprehensive Income (Loss) [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Changes in Unrealized Gain/(Loss) Included in Net Income, Liabilities | 0 | 0 | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Other Comprehensive Income (Loss) [Member] | Contingent Consideration | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Changes in Unrealized Gain/(Loss) Included in Net Income, Liabilities | 0 | 0 | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Freestanding Derivatives, net | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Changes in Unrealized Gain/(Loss) Included in Net Income, Derivatives | (4) | (1) | (7) | 1 |
Significant Unobservable Inputs (Level 3) | Freestanding Derivatives, net | Equity | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Changes in Unrealized Gain/(Loss) Included in Net Income, Derivatives | (4) | (1) | (6) | 0 |
Significant Unobservable Inputs (Level 3) | Freestanding Derivatives, net | Interest rate derivatives | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Changes in Unrealized Gain/(Loss) Included in Net Income, Derivatives | 0 | 0 | (1) | 1 |
Significant Unobservable Inputs (Level 3) | Freestanding Derivatives, net | Other Comprehensive Income (Loss) [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Changes in Unrealized Gain/(Loss) Included in Net Income, Derivatives | 0 | 0 | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Freestanding Derivatives, net | Other Comprehensive Income (Loss) [Member] | Equity | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Changes in Unrealized Gain/(Loss) Included in Net Income, Derivatives | 0 | 0 | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Freestanding Derivatives, net | Other Comprehensive Income (Loss) [Member] | Interest rate derivatives | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Changes in Unrealized Gain/(Loss) Included in Net Income, Derivatives | 0 | 0 | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Total Fixed Maturities, AFS | Securities available-for-sale and other | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Changes in Unrealized Gain/(Loss) Included in Net Income, Assets | 0 | 0 | (1) | 0 |
Significant Unobservable Inputs (Level 3) | Total Fixed Maturities, AFS | Securities available-for-sale and other | Other Comprehensive Income (Loss) [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Changes in Unrealized Gain/(Loss) Included in Net Income, Assets | 2 | (11) | 8 | (15) |
Significant Unobservable Inputs (Level 3) | Total Fixed Maturities, AFS | Corporate | Securities available-for-sale and other | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Changes in Unrealized Gain/(Loss) Included in Net Income, Assets | 0 | 0 | (1) | 0 |
Significant Unobservable Inputs (Level 3) | Total Fixed Maturities, AFS | Corporate | Securities available-for-sale and other | Other Comprehensive Income (Loss) [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Changes in Unrealized Gain/(Loss) Included in Net Income, Assets | 2 | (7) | 9 | (8) |
Significant Unobservable Inputs (Level 3) | Total Fixed Maturities, AFS | RMBS | Securities available-for-sale and other | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Changes in Unrealized Gain/(Loss) Included in Net Income, Assets | 0 | 0 | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Total Fixed Maturities, AFS | RMBS | Securities available-for-sale and other | Other Comprehensive Income (Loss) [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Changes in Unrealized Gain/(Loss) Included in Net Income, Assets | $ 0 | $ (4) | $ (1) | $ (7) |
Fair Value Measurements - Fai_3
Fair Value Measurements - Fair Value Option (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Fair Value Inputs and Valuation Techniques | |||||
Fixed maturities, at fair value using the fair value option | $ 49 | $ 49 | $ 22 | ||
Changes in fair value of assets using fair value option | 0 | $ 0 | 0 | $ 0 | |
Real Estate Sector [Member] | |||||
Fair Value Inputs and Valuation Techniques | |||||
Fixed maturities, at fair value using the fair value option | $ 49 | $ 49 | $ 22 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Instruments Not Carried at Fair Value (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, carrying value | $ 69,472 | $ 62,307 |
Assets, fair value | 45,123 | 41,178 |
Liabilities, carrying value | 54,180 | 49,206 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 1,728 | 1,645 |
Significant Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 40,957 | 37,071 |
Carrying Amount | Significant Unobservable Inputs (Level 3) | Other policyholder funds and benefits payable | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities, carrying value | 799 | 774 |
Carrying Amount | Significant Unobservable Inputs (Level 3) | Mortgage loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, carrying value | 3,612 | 3,704 |
Carrying Amount | Significant Observable Inputs (Level 2) | Senior notes [1] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities, carrying value | 3,461 | 3,589 |
Carrying Amount | Significant Observable Inputs (Level 2) | Junior subordinated debentures [1] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities, carrying value | 1,089 | 1,089 |
Fair Value | Significant Unobservable Inputs (Level 3) | Other policyholder funds and benefits payable | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities, fair value | 816 | 775 |
Fair Value | Significant Unobservable Inputs (Level 3) | Mortgage loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 3,746 | 3,746 |
Fair Value | Significant Observable Inputs (Level 2) | Senior notes [1] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities, fair value | 4,038 | 3,887 |
Fair Value | Significant Observable Inputs (Level 2) | Junior subordinated debentures [1] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities, fair value | $ 1,097 | $ 1,052 |
Investments - Investments - Net
Investments - Investments - Net Realized Capital Gains (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Schedule of Investments [Line Items] | ||||
Gross gains on sales | $ 69 | $ 46 | $ 113 | $ 65 |
Gross losses on sales | (19) | (31) | (40) | (88) |
Net OTTI losses recognized in earnings | 0 | 0 | (2) | 0 |
Transactional foreign currency revaluation | 0 | 0 | 0 | 1 |
Total net realized capital gains (losses) | 80 | 52 | 243 | 22 |
Equity Securities, FV-NI, Unrealized Gain (Loss) | 29 | 17 | 74 | 11 |
Other net realized capital gains | 80 | 52 | 245 | 22 |
Proceeds from Sale of Available-for-sale Securities | 4,600 | 4,200 | 8,900 | 8,500 |
Net Unrealized Gain on Securities | Reclassification out of Accumulated Other Comprehensive Income | ||||
Schedule of Investments [Line Items] | ||||
Other net realized capital gains | 50 | (6) | 71 | (44) |
Other, net | ||||
Schedule of Investments [Line Items] | ||||
Other, net | 0 | 7 | 9 | 1 |
Non-qualifying foreign currency derivatives | ||||
Schedule of Investments [Line Items] | ||||
Non-qualifying foreign currency derivatives | (7) | 12 | 8 | (1) |
Non-qualifying foreign currency derivatives | Other Credit Derivatives | ||||
Schedule of Investments [Line Items] | ||||
Non-qualifying foreign currency derivatives | (6) | 8 | 8 | (2) |
Foreign Exchange Forward [Member] | Non-qualifying foreign currency derivatives | ||||
Schedule of Investments [Line Items] | ||||
Non-qualifying foreign currency derivatives | (1) | 4 | 0 | 1 |
Equity Securities [Member] | ||||
Schedule of Investments [Line Items] | ||||
Equity securities | 30 | 26 | 162 | 42 |
Mortgages [Member] | ||||
Schedule of Investments [Line Items] | ||||
SEC Schedule, 12-09, Valuation Allowances and Reserves, Increase (Decrease) Adjustment | $ (1) | $ 0 | $ (1) | $ 0 |
Investments - Investments - Oth
Investments - Investments - Other Than Temporary Impairment (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||||
Credit impairments | $ 0 | $ 0 | $ 2 | $ 0 |
Intent-to-sell impairments | 0 | 0 | 0 | 0 |
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net | 0 | 0 | 2 | 0 |
Other than Temporary Impairment Losses, Investments | 0 | 0 | 2 | 0 |
Cumulative Credit Impairments | ||||
Beginning balance | (18) | (21) | (19) | (25) |
Additions for credit impairments recognized on: | ||||
Securities not previously impaired | 0 | 0 | (2) | 0 |
Reductions for credit impairments previously recognized on: | ||||
Securities that matured or were sold during the period | 0 | 1 | 3 | 5 |
Ending balance | $ (18) | $ (20) | $ (18) | $ (20) |
Investments - Investments - Ava
Investments - Investments - Available-for-Sale Securities (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturities, available-for-sale, at fair value, amortized cost | $ 39,429 | $ 35,603 |
Gross Unrealized Gains, fixed maturities, available-for-sale | 1,805 | 703 |
Gross Unrealized Losses, fixed maturities, available-for-sale | (68) | (654) |
Fixed maturities, available-for-sale, at fair value (amortized cost of $54,478 and $53,805) | 41,166 | 35,652 |
Non-Credit OTTI | (4) | (5) |
Amortized Cost | ||
One year or less | 1,094 | 999 |
Over one year through five years | 7,164 | 5,786 |
Over five years through ten years | 7,580 | 6,611 |
Over ten years | 12,400 | 12,629 |
Subtotal | 28,238 | 26,025 |
Mortgage-backed and asset-backed securities | 11,191 | 9,578 |
Fair Value | ||
One year or less | 1,100 | 1,002 |
Over one year through five years | 7,332 | 5,791 |
Over five years through ten years | 7,910 | 6,495 |
Over ten years | 13,399 | 12,820 |
Subtotal | 29,741 | 26,108 |
Mortgage-backed and asset-backed securities | 11,425 | 9,544 |
ABS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturities, available-for-sale, at fair value, amortized cost | 1,010 | 1,272 |
Gross Unrealized Gains, fixed maturities, available-for-sale | 19 | 5 |
Gross Unrealized Losses, fixed maturities, available-for-sale | 0 | (1) |
Fixed maturities, available-for-sale, at fair value (amortized cost of $54,478 and $53,805) | 1,029 | 1,276 |
Non-Credit OTTI | 0 | 0 |
CLOs | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturities, available-for-sale, at fair value, amortized cost | 1,929 | 1,455 |
Gross Unrealized Gains, fixed maturities, available-for-sale | 4 | 2 |
Gross Unrealized Losses, fixed maturities, available-for-sale | (8) | (20) |
Fixed maturities, available-for-sale, at fair value (amortized cost of $54,478 and $53,805) | 1,925 | 1,437 |
Non-Credit OTTI | 0 | 0 |
CMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturities, available-for-sale, at fair value, amortized cost | 3,774 | 3,581 |
Gross Unrealized Gains, fixed maturities, available-for-sale | 139 | 35 |
Gross Unrealized Losses, fixed maturities, available-for-sale | (8) | (64) |
Fixed maturities, available-for-sale, at fair value (amortized cost of $54,478 and $53,805) | 3,905 | 3,552 |
Non-Credit OTTI | (4) | (5) |
Corporate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturities, available-for-sale, at fair value, amortized cost | 16,078 | 13,696 |
Gross Unrealized Gains, fixed maturities, available-for-sale | 718 | 148 |
Gross Unrealized Losses, fixed maturities, available-for-sale | (48) | (446) |
Fixed maturities, available-for-sale, at fair value (amortized cost of $54,478 and $53,805) | 16,748 | 13,398 |
Non-Credit OTTI | 0 | 0 |
Foreign Govt./Govt. Agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturities, available-for-sale, at fair value, amortized cost | 1,025 | 866 |
Gross Unrealized Gains, fixed maturities, available-for-sale | 48 | 7 |
Gross Unrealized Losses, fixed maturities, available-for-sale | (1) | (26) |
Fixed maturities, available-for-sale, at fair value (amortized cost of $54,478 and $53,805) | 1,072 | 847 |
Non-Credit OTTI | 0 | 0 |
Municipal | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturities, available-for-sale, at fair value, amortized cost | 9,568 | 9,972 |
Gross Unrealized Gains, fixed maturities, available-for-sale | 710 | 421 |
Gross Unrealized Losses, fixed maturities, available-for-sale | 0 | (47) |
Fixed maturities, available-for-sale, at fair value (amortized cost of $54,478 and $53,805) | 10,278 | 10,346 |
Non-Credit OTTI | 0 | 0 |
RMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturities, available-for-sale, at fair value, amortized cost | 4,478 | 3,270 |
Gross Unrealized Gains, fixed maturities, available-for-sale | 90 | 44 |
Gross Unrealized Losses, fixed maturities, available-for-sale | (2) | (35) |
Fixed maturities, available-for-sale, at fair value (amortized cost of $54,478 and $53,805) | 4,566 | 3,279 |
Non-Credit OTTI | 0 | 0 |
U.S. Treasuries | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturities, available-for-sale, at fair value, amortized cost | 1,567 | 1,491 |
Gross Unrealized Gains, fixed maturities, available-for-sale | 77 | 41 |
Gross Unrealized Losses, fixed maturities, available-for-sale | (1) | (15) |
Fixed maturities, available-for-sale, at fair value (amortized cost of $54,478 and $53,805) | 1,643 | 1,517 |
Non-Credit OTTI | $ 0 | $ 0 |
Investments - Concentration of
Investments - Concentration of Credit Risk (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Investments, All Other Investments [Abstract] | ||
Fair Value, Concentration of Risk, Investments | $ 0 | $ 0 |
Investments - Investments - Unr
Investments - Investments - Unrealized Losses on AFS Securities (Details) $ in Millions | Jun. 30, 2019USD ($) | Dec. 31, 2018USD ($) |
Unrealized Losses | ||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 906 | |
Percentage of Gross Unrealized Losses Depressed Less than Twenty Percent of Cost or Amortized Cost | 96.00% | |
ABS | ||
Amortized Cost | ||
Less Than 12 Months | $ 90 | $ 566 |
12 Months or More | 29 | 113 |
Total | 119 | 679 |
Fair Value | ||
Less Than 12 Months | 90 | 566 |
12 Months or More | 29 | 112 |
Total | 119 | 678 |
Unrealized Losses | ||
Less Than 12 Months | 0 | 0 |
12 Months or More | 0 | (1) |
Total | 0 | (1) |
CLOs | ||
Amortized Cost | ||
Less Than 12 Months | 1,229 | 1,358 |
12 Months or More | 155 | 7 |
Total | 1,384 | 1,365 |
Fair Value | ||
Less Than 12 Months | 1,223 | 1,338 |
12 Months or More | 153 | 7 |
Total | 1,376 | 1,345 |
Unrealized Losses | ||
Less Than 12 Months | (6) | (20) |
12 Months or More | (2) | 0 |
Total | (8) | (20) |
CMBS | ||
Amortized Cost | ||
Less Than 12 Months | 49 | 896 |
12 Months or More | 372 | 1,129 |
Total | 421 | 2,025 |
Fair Value | ||
Less Than 12 Months | 48 | 882 |
12 Months or More | 365 | 1,079 |
Total | 413 | 1,961 |
Unrealized Losses | ||
Less Than 12 Months | (1) | (14) |
12 Months or More | (7) | (50) |
Total | (8) | (64) |
Corporate | ||
Amortized Cost | ||
Less Than 12 Months | 315 | 7,174 |
12 Months or More | 1,504 | 2,541 |
Total | 1,819 | 9,715 |
Fair Value | ||
Less Than 12 Months | 309 | 6,903 |
12 Months or More | 1,462 | 2,366 |
Total | 1,771 | 9,269 |
Unrealized Losses | ||
Less Than 12 Months | (6) | (271) |
12 Months or More | (42) | (175) |
Total | (48) | (446) |
Foreign Govt./Govt. Agencies | ||
Amortized Cost | ||
Less Than 12 Months | 23 | 407 |
12 Months or More | 62 | 203 |
Total | 85 | 610 |
Fair Value | ||
Less Than 12 Months | 23 | 391 |
12 Months or More | 61 | 193 |
Total | 84 | 584 |
Unrealized Losses | ||
Less Than 12 Months | 0 | (16) |
12 Months or More | (1) | (10) |
Total | (1) | (26) |
Municipal | ||
Amortized Cost | ||
Less Than 12 Months | 36 | 1,643 |
12 Months or More | 7 | 292 |
Total | 43 | 1,935 |
Fair Value | ||
Less Than 12 Months | 36 | 1,613 |
12 Months or More | 7 | 275 |
Total | 43 | 1,888 |
Unrealized Losses | ||
Less Than 12 Months | 0 | (30) |
12 Months or More | 0 | (17) |
Total | 0 | (47) |
RMBS | ||
Amortized Cost | ||
Less Than 12 Months | 90 | 1,344 |
12 Months or More | 356 | 648 |
Total | 446 | 1,992 |
Fair Value | ||
Less Than 12 Months | 90 | 1,329 |
12 Months or More | 354 | 628 |
Total | 444 | 1,957 |
Unrealized Losses | ||
Less Than 12 Months | 0 | (15) |
12 Months or More | (2) | (20) |
Total | (2) | (35) |
U.S. Treasuries | ||
Amortized Cost | ||
Less Than 12 Months | 16 | 497 |
12 Months or More | 163 | 339 |
Total | 179 | 836 |
Fair Value | ||
Less Than 12 Months | 16 | 492 |
12 Months or More | 162 | 329 |
Total | 178 | 821 |
Unrealized Losses | ||
Less Than 12 Months | 0 | (5) |
12 Months or More | (1) | (10) |
Total | (1) | (15) |
Available-for-sale Securities [Member] | ||
Amortized Cost | ||
Less Than 12 Months | 1,848 | 13,885 |
12 Months or More | 2,648 | 5,272 |
Total | 4,496 | 19,157 |
Fair Value | ||
Less Than 12 Months | 1,835 | 13,514 |
12 Months or More | 2,593 | 4,989 |
Total | 4,428 | 18,503 |
Unrealized Losses | ||
Less Than 12 Months | (13) | (371) |
12 Months or More | (55) | (283) |
Total | $ (68) | $ (654) |
Investments - Investments - Mor
Investments - Investments - Mortgage Loans- Valuation Allowance Activity (Details) - USD ($) | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Mortgage loans | $ 3,612,000,000 | $ 3,704,000,000 | |
Mortgage Loans on Real Estate, Other Additions | 0 | ||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning balance | (1,000,000) | $ (1,000,000) | |
(Additions)/Reversals | 1,000,000 | 0 | |
Deductions | 0 | 0 | |
Ending balance | $ 0 | $ (1,000,000) | |
Current Weighted Average Loan to Value Ratio of Commercial Mortgage Loan | 52.00% | ||
Original Weighted Average Loan to Value Ratio of Commercial Mortgage loan | 61.00% | ||
Held-for-sale | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Mortgage loans | $ 0 | 0 | |
SEC Schedule, 12-09, Allowance, Loan and Lease Loss [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Mortgage loans | 23,000,000 | 23,000,000 | |
Commercial Loan [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Mortgage loans | 3,612,000,000 | 3,704,000,000 | |
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning balance | (1,000,000) | ||
Ending balance | 0 | ||
Amortized Cost [Member] | Commercial Loan [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Mortgage loans | 3,600,000,000 | 3,700,000,000 | |
Commercial Loan [Member] | Mortgage loans | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Mortgage loans past due by 90 days or more | $ 0 | ||
Mortgage loans | Commercial Loan [Member] | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Mortgage loans past due by 90 days or more | $ 0 |
Investments - Investments - Com
Investments - Investments - Commercial Mortgage Loans Credit Quality (Details) $ in Millions | Jun. 30, 2019USD ($) | Dec. 31, 2018USD ($) |
Financing Receivable, Recorded Investment [Line Items] | ||
Carrying Value | $ 3,612 | $ 3,704 |
Commercial Loan [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Carrying Value | $ 3,612 | $ 3,704 |
Avg. Debt-Service Coverage Ratio | 2.47 | 2.49 |
Commercial Loan [Member] | 65% - 80% | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Carrying Value | $ 404 | $ 386 |
Avg. Debt-Service Coverage Ratio | 1.70 | 1.60 |
Commercial Loan [Member] | Less than 65% | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Carrying Value | $ 3,208 | $ 3,318 |
Avg. Debt-Service Coverage Ratio | 2.56 | 2.59 |
Investments - Investments - M_2
Investments - Investments - Mortgage Loans by Region and Property Type (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying Value | $ 3,612 | $ 3,704 |
Percent of Total | 100.00% | 100.00% |
Industrial | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying Value | $ 1,000 | $ 1,108 |
Percent of Total | 27.70% | 29.90% |
Multifamily | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying Value | $ 1,156 | $ 1,138 |
Percent of Total | 32.00% | 30.70% |
Office | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying Value | $ 691 | $ 708 |
Percent of Total | 19.20% | 19.10% |
Retail | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying Value | $ 409 | $ 392 |
Percent of Total | 11.30% | 10.60% |
Residential Real Estate [Member] | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying Value | $ 81 | $ 82 |
Percent of Total | 2.20% | 2.20% |
Other | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying Value | $ 275 | $ 276 |
Percent of Total | 7.60% | 7.50% |
East North Central | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying Value | $ 250 | $ 250 |
Middle Atlantic | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying Value | 268 | 270 |
Mountain | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying Value | 33 | 30 |
New England | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying Value | 346 | 330 |
Pacific | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying Value | 884 | 917 |
South Atlantic | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying Value | 742 | 712 |
West North Central | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying Value | 121 | 148 |
West South Central | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying Value | 407 | 420 |
Other | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying Value | $ 561 | $ 627 |
Mortgages [Member] | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Percent of Total | 100.00% | 100.00% |
Mortgages [Member] | East North Central | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Percent of Total | 6.90% | 6.80% |
Mortgages [Member] | Middle Atlantic | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Percent of Total | 7.40% | 7.30% |
Mortgages [Member] | Mountain | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Percent of Total | 0.90% | 0.80% |
Mortgages [Member] | New England | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Percent of Total | 9.70% | 8.90% |
Mortgages [Member] | Pacific | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Percent of Total | 24.50% | 24.80% |
Mortgages [Member] | South Atlantic | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Percent of Total | 20.50% | 19.20% |
Mortgages [Member] | West North Central | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Percent of Total | 3.30% | 4.00% |
Mortgages [Member] | West South Central | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Percent of Total | 11.30% | 11.30% |
Mortgages [Member] | Other | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Percent of Total | 15.50% | 16.90% |
Investments - Mortgage Servicin
Investments - Mortgage Servicing (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Servicing Asset at Amortized Cost, Fair Value | $ 5,900,000,000 | $ 6,000,000,000 |
Continuing Involvement with Derecognized Transferred Financial Assets, Amount Outstanding | 3,500,000,000 | 3,600,000,000 |
Servicing Asset at Fair Value, Amount | 0 | 0 |
Investments [Member] | ||
Continuing Involvement with Continued to be Recognized Transferred Financial Assets, Amount Outstanding | $ 2,400,000,000 | $ 2,400,000,000 |
Investments - Investments - VIE
Investments - Investments - VIEs (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Concentration Risk [Line Items] | ||
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | $ 1,100 | $ 1,000 |
Variable Interest Entity, Not Primary Beneficiary [Member] | ||
Concentration Risk [Line Items] | ||
Variable Interest Entity, Reporting Entity Involvement, Commitments | $ 797 | $ 718 |
Investments - Investments - Sec
Investments - Investments - Securities Lending, Repurchase Agreements, and Other Collateral Transactions (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Securities Lending Transactions: | ||
Gross amount of securities on loan | $ 585 | $ 820 |
Gross amount of associated liability for collateral received | 599 | 840 |
Repurchase agreements: | ||
Gross amount of recognized liabilities for repurchase agreements | 154 | 72 |
Gross amount of collateral pledged related to repurchase agreements | 158 | 73 |
Securities for Reverse Repurchase Agreements | 54 | 64 |
Securities Loaned, Collateral, Obligation to Return Securities | 18 | 3 |
Assets Held by Insurance Regulators | 2,400 | 2,200 |
Short-term investments | 2,364 | 4,283 |
Debt Securities [Member] | ||
Repurchase agreements: | ||
Debt Securities, Available-for-sale, Restricted | 489 | |
Short-term Investments [Member] | ||
Repurchase agreements: | ||
Short-term investments | 1 | |
US Treasury Securities [Member] | ||
Repurchase agreements: | ||
Debt Securities, Available-for-sale, Restricted | $ 36 | 47 |
Minimum | ||
Repurchase agreements: | ||
Securities Sold Under Agreements to Repurchase, Percentage of Fair Value Required to be Paid in Cash at Sale | 95.00% | |
Fair Value Measured at Net Asset Value Per Share [Member] | ||
Repurchase agreements: | ||
Deposit Assets | $ 49 | $ 0 |
Derivative Instruments - Deriva
Derivative Instruments - Derivatives - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2018 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Notional amount | $ 12,291,000,000 | $ 12,361,000,000 | ||
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | 18,000,000 | |||
Collateral receivable | 4,000,000 | 1,000,000 | ||
Pledged collateral, securities | 67,000,000 | 73,000,000 | ||
Cash collateral held | 9,000,000 | 11,000,000 | ||
Securities Received as Collateral | 5,000,000 | 2,000,000 | ||
Collateral Securities Repledged, Delivered, or Used | $ 0 | $ 0 | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | did not sell any securities held as collateral. | did not sell any securities held as collateral | ||
Over the Counter [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Pledged collateral, securities | $ 89,000,000 | $ 85,000,000 | ||
AOCI Attributable to Parent [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Loss on Discontinuation of Cash Flow Hedge Due to Forecasted Transaction Probable of Not Occurring | $ 0 | 0 | $ 0 | |
AOCI Attributable to Parent [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Loss on Discontinuation of Cash Flow Hedge Due to Forecasted Transaction Probable of Not Occurring | 0 | |||
Not Designated as Hedging Instrument | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Notional amount | $ 10,098,000,000 | $ 10,101,000,000 |
Derivative Instruments - Deri_2
Derivative Instruments - Derivatives - Derivative Balance Sheet Classification (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 12,361 | $ 12,291 |
Fair Value | (60) | (61) |
Asset Derivatives | 30 | 31 |
Liability Derivatives | (90) | (92) |
Fixed maturities, available-for-sale | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 153 | 153 |
Fair Value | 0 | 0 |
Asset Derivatives | 0 | 0 |
Liability Derivatives | 0 | 0 |
Other investments | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 1,353 | 9,864 |
Fair Value | 11 | 7 |
Asset Derivatives | 12 | 23 |
Liability Derivatives | (1) | (16) |
Other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 10,855 | 2,274 |
Fair Value | (71) | (68) |
Asset Derivatives | 18 | 8 |
Liability Derivatives | (89) | (76) |
Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 10,101 | 10,098 |
Fair Value | (57) | (56) |
Asset Derivatives | 26 | 27 |
Liability Derivatives | (83) | (83) |
Interest rate swaps | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 2,040 | 2,040 |
Fair Value | 0 | 1 |
Asset Derivatives | 0 | 2 |
Liability Derivatives | 0 | (1) |
Interest rate swaps | Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 7,600 | 7,100 |
Foreign currency swaps | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 220 | 153 |
Fair Value | (3) | (6) |
Asset Derivatives | 4 | 2 |
Liability Derivatives | (7) | (8) |
Total cash flow hedges | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 2,260 | 2,193 |
Fair Value | (3) | (5) |
Asset Derivatives | 4 | 4 |
Liability Derivatives | (7) | (9) |
Interest rate swaps and futures | Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 8,338 | 8,451 |
Fair Value | (62) | (62) |
Asset Derivatives | 3 | 8 |
Liability Derivatives | (65) | (70) |
Foreign currency swaps and forwards | Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 389 | 287 |
Fair Value | (2) | (1) |
Asset Derivatives | 0 | 0 |
Liability Derivatives | (2) | (1) |
Credit derivatives that purchase credit protection | Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 115 | 6 |
Fair Value | (1) | 0 |
Asset Derivatives | 0 | 0 |
Liability Derivatives | (1) | 0 |
Credit derivatives that assume credit risk | Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 514 | 1,102 |
Fair Value | 11 | 3 |
Asset Derivatives | 11 | 8 |
Liability Derivatives | 0 | (5) |
Credit derivatives in offsetting positions | Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 35 | 41 |
Fair Value | 0 | 0 |
Asset Derivatives | 6 | 6 |
Liability Derivatives | (6) | (6) |
Equity index swaps and options | Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 710 | 211 |
Fair Value | (3) | 4 |
Asset Derivatives | 6 | 5 |
Liability Derivatives | $ (9) | $ (1) |
Derivative Instruments - Deri_3
Derivative Instruments - Derivatives - Offsetting Derivative Assets and Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Derivative [Line Items] | ||
Asset Derivatives | $ 30 | $ 31 |
Derivative assets | 11 | 7 |
Accrued Interest and Cash Collateral (Received) | (1) | (4) |
Gross Amounts of Recognized (Liabilities) | (90) | (92) |
Derivative Liability | (71) | (68) |
Other liabilities | ||
Derivative [Line Items] | ||
Accrued Interest and Cash Collateral (Received) | (4) | (4) |
Gross Amounts of Recognized (Liabilities) | (90) | (92) |
Gross Amounts Offset in the Statement of Financial Position, liabilities | (15) | (20) |
Derivative Liability | (71) | (68) |
Financial Collateral (Received) | (68) | (65) |
Net amount, liabilities | (7) | (7) |
Other investments | ||
Derivative [Line Items] | ||
Asset Derivatives | 30 | 31 |
Gross Amounts Offset in the Statement of Financial Position, assets | 26 | 26 |
Derivative assets | 11 | 7 |
Accrued Interest and Cash Collateral (Received) | (7) | (2) |
Financial Collateral Pledged | 1 | 2 |
Net Amount, assets | $ 3 | $ 3 |
Derivative Instruments - Deri_4
Derivative Instruments - Derivatives - Cash Flow Hedges (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Net realized capital gains (losses) | $ 80 | $ 52 | $ 243 | $ 22 |
Net Investment Income | 488 | 428 | 958 | 879 |
Interest Expense | 63 | 79 | 127 | 159 |
Interest rate swaps | Reclassification out of Accumulated Other Comprehensive Income | Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Net Investment Income | 0 | 9 | 0 | 17 |
Interest Expense | 1 | 1 | ||
Foreign currency swaps | Reclassification out of Accumulated Other Comprehensive Income | Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Net Investment Income | 0 | 1 | ||
Cash Flow Hedging | Designated as Hedging Instrument | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gain (Loss) Recognized in OCI on Derivative (Effective Portion) | 17 | 6 | 24 | (15) |
Cash Flow Hedging | Designated as Hedging Instrument | Reclassification out of Accumulated Other Comprehensive Income | Net realized capital gains | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | 2 | 0 | 2 | 1 |
Cash Flow Hedging | Designated as Hedging Instrument | Reclassification out of Accumulated Other Comprehensive Income | Net investment income | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | 0 | 9 | 1 | 17 |
Cash Flow Hedging | Designated as Hedging Instrument | Reclassification out of Accumulated Other Comprehensive Income | Interest Expense [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | 1 | 0 | 1 | 0 |
Cash Flow Hedging | Designated as Hedging Instrument | Interest rate swaps | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gain (Loss) Recognized in OCI on Derivative (Effective Portion) | 13 | (2) | 20 | (16) |
Cash Flow Hedging | Designated as Hedging Instrument | Interest rate swaps | Reclassification out of Accumulated Other Comprehensive Income | Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent | Net realized capital gains | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | 2 | 0 | 2 | 1 |
Cash Flow Hedging | Designated as Hedging Instrument | Interest rate swaps | Reclassification out of Accumulated Other Comprehensive Income | Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent | Net investment income | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | 0 | 9 | 0 | 17 |
Cash Flow Hedging | Designated as Hedging Instrument | Interest rate swaps | Reclassification out of Accumulated Other Comprehensive Income | Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent | Interest Expense [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | 1 | 0 | 1 | 0 |
Cash Flow Hedging | Designated as Hedging Instrument | Foreign currency swaps | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gain (Loss) Recognized in OCI on Derivative (Effective Portion) | 4 | 8 | 4 | 1 |
Cash Flow Hedging | Designated as Hedging Instrument | Foreign currency swaps | Reclassification out of Accumulated Other Comprehensive Income | Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent | Net realized capital gains | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | 0 | 0 | 0 | 0 |
Cash Flow Hedging | Designated as Hedging Instrument | Foreign currency swaps | Reclassification out of Accumulated Other Comprehensive Income | Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent | Net investment income | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | 0 | 0 | 1 | 0 |
Cash Flow Hedging | Designated as Hedging Instrument | Foreign currency swaps | Reclassification out of Accumulated Other Comprehensive Income | Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent | Interest Expense [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | $ 0 | $ 0 | $ 0 | $ 0 |
Derivative Instruments - Deri_5
Derivative Instruments - Derivatives - Non-qualifying Strategies (Details) - Not Designated as Hedging Instrument - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Non-qualifying foreign currency derivatives | $ (7) | $ 12 | $ 8 | $ (1) |
Total other non-qualifying derivatives | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Non-qualifying foreign currency derivatives | (6) | 8 | 8 | (2) |
Foreign Exchange Forward [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Non-qualifying foreign currency derivatives | (1) | 4 | 0 | 1 |
Interest rate swaps, swaptions, and futures | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Non-qualifying foreign currency derivatives | (7) | 8 | (15) | 6 |
Credit derivatives that assume credit risk | Credit derivatives that purchase credit protection | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Non-qualifying foreign currency derivatives | (1) | 1 | 0 | 0 |
Credit derivatives that assume credit risk | Credit derivatives that assume credit risk | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Non-qualifying foreign currency derivatives | 6 | 0 | 27 | (8) |
Equity options | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Non-qualifying foreign currency derivatives | $ (4) | $ (1) | $ (4) | $ 0 |
Derivative Instruments - Deri_6
Derivative Instruments - Derivatives - Credit Risk Assumed through Credit Derivatives (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Credit Derivatives [Line Items] | ||
Notional Amount | $ 12,361 | $ 12,291 |
Fair Value | (60) | (61) |
Credit Default Swap, Selling Protection [Member] | ||
Credit Derivatives [Line Items] | ||
Notional Amount | 532 | 1,123 |
Credit derivatives | ||
Credit Derivatives [Line Items] | ||
Fair Value | 5 | (3) |
Offsetting Notional Amount | 18 | 21 |
Offsetting Fair Value | 6 | 6 |
Credit derivatives | Single name credit default swaps | A Minus | Investment grade risk exposure | ||
Credit Derivatives [Line Items] | ||
Notional Amount | 165 | |
Fair Value | $ 4 | |
Weighted Average Years to Maturity | 5 years | |
Offsetting Notional Amount | $ 0 | |
Offsetting Fair Value | 0 | |
Credit derivatives | Single name credit default swaps | A | Investment grade risk exposure | ||
Credit Derivatives [Line Items] | ||
Notional Amount | 169 | |
Fair Value | $ 2 | |
Weighted Average Years to Maturity | 4 years | |
Offsetting Notional Amount | $ 0 | |
Offsetting Fair Value | 0 | |
Credit derivatives | Basket credit default swaps | A Minus | Investment grade risk exposure | ||
Credit Derivatives [Line Items] | ||
Notional Amount | 11 | |
Fair Value | $ 0 | |
Weighted Average Years to Maturity | 5 years | |
Offsetting Notional Amount | $ 2 | |
Offsetting Fair Value | 0 | |
Credit derivatives | Basket credit default swaps | BBB Plus | Investment grade risk exposure | ||
Credit Derivatives [Line Items] | ||
Notional Amount | 350 | 799 |
Fair Value | $ 7 | $ (1) |
Weighted Average Years to Maturity | 5 years | 6 years |
Offsetting Notional Amount | $ 0 | $ 0 |
Offsetting Fair Value | 0 | 0 |
Credit derivatives | Basket credit default swaps | B Plus | Below investment grade risk exposure | ||
Credit Derivatives [Line Items] | ||
Notional Amount | 125 | |
Fair Value | $ 2 | |
Weighted Average Years to Maturity | 5 years | |
Offsetting Notional Amount | $ 0 | |
Offsetting Fair Value | 0 | |
Credit derivatives | Basket credit default swaps | A | Investment grade risk exposure | ||
Credit Derivatives [Line Items] | ||
Notional Amount | 1 | |
Fair Value | $ 0 | |
Average Term of Credit Risk Derivatives Less than 1 Year | Less than 1 year | |
Offsetting Notional Amount | $ 1 | |
Offsetting Fair Value | 0 | |
Credit derivatives | Basket credit default swaps | CCC | Below investment grade risk exposure | ||
Credit Derivatives [Line Items] | ||
Notional Amount | 16 | 19 |
Fair Value | $ (6) | $ (6) |
Average Term of Credit Risk Derivatives Less than 1 Year | Less than 1 year | Less than 1 year |
Offsetting Notional Amount | $ 17 | $ 19 |
Offsetting Fair Value | $ 6 | $ 6 |
Reserve for Unpaid Losses and_3
Reserve for Unpaid Losses and Loss Adjustment Expenses - P&C Liabilities for Unpaid Losses and Loss Adjustment Expense (Details) - USD ($) $ in Millions | 6 Months Ended | ||||
Jun. 30, 2019 | Jun. 30, 2018 | May 23, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | |||||
Beginning liabilities for unpaid losses and loss adjustment expenses, gross | $ 33,029 | ||||
Less: payments | |||||
Ending liabilities for unpaid losses and loss adjustment expenses, gross | 36,104 | ||||
Property, Liability and Casualty Insurance Product Line | |||||
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | |||||
Beginning liabilities for unpaid losses and loss adjustment expenses, gross | 24,584 | $ 23,775 | |||
Reinsurance recoverables | 4,232 | 3,957 | |||
Beginning liabilities for unpaid losses and loss adjustment expenses, net | 22,623 | 19,859 | $ 20,352 | $ 19,818 | |
Provision for unpaid losses and loss adjustment expense | |||||
Current accident year | 3,475 | 3,362 | |||
Prior accident year development | 24 | (79) | |||
Total provision for unpaid losses and loss adjustment expenses | 3,499 | 3,283 | |||
Less: payments | |||||
Current accident year | 848 | 934 | |||
Prior accident years | 2,381 | 2,308 | |||
Total payments | 3,229 | 3,242 | |||
Ending liabilities for unpaid losses and loss adjustment expenses, net | 22,623 | 19,859 | |||
Reinsurance recoverables | 5,125 | 3,772 | |||
Ending liabilities for unpaid losses and loss adjustment expenses, gross | $ 27,748 | $ 23,631 | |||
The Navigators Group, Inc. [Member] | |||||
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Reinsurance Recoverables | $ 2,001 | $ 0 |
Reserve for Unpaid Losses and_4
Reserve for Unpaid Losses and Loss Adjustment Expenses - P&C Prior Accident Years Reserve Development (Details) - USD ($) $ in Millions | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Workers’ compensation | ||||
Product Information [Line Items] | ||||
Prior accident year development | $ (50) | $ (73) | ||
Workers’ compensation discount accretion | ||||
Product Information [Line Items] | ||||
Prior accident year development | 17 | 20 | ||
General liability | ||||
Product Information [Line Items] | ||||
Prior accident year development | 43 | 28 | ||
Marine | ||||
Product Information [Line Items] | ||||
Prior accident year development | 10 | 0 | ||
Package business | ||||
Product Information [Line Items] | ||||
Prior accident year development | (9) | (7) | ||
Professional liability | ||||
Product Information [Line Items] | ||||
Prior accident year development | 33 | 8 | ||
Bond | ||||
Product Information [Line Items] | ||||
Prior accident year development | 0 | 0 | ||
Assumed Reinsurance | ||||
Product Information [Line Items] | ||||
Prior accident year development | 3 | 0 | ||
Net asbestos reserves | ||||
Product Information [Line Items] | ||||
Prior accident year development | 0 | 0 | ||
Net environmental reserves | ||||
Product Information [Line Items] | ||||
Prior accident year development | 0 | 0 | ||
Catastrophes | ||||
Product Information [Line Items] | ||||
Prior accident year development | (22) | (34) | ||
Uncollectible reinsurance | ||||
Product Information [Line Items] | ||||
Prior accident year development | 0 | 11 | ||
Other reserve re-estimates, net | ||||
Product Information [Line Items] | ||||
Prior accident year development | 16 | 3 | ||
Property and Casualty, Commercial Insurance Product Line [Member] | Property | ||||
Product Information [Line Items] | ||||
Prior accident year development | (15) | (12) | ||
Property and Casualty, Commercial Insurance Product Line [Member] | Automobile | ||||
Product Information [Line Items] | ||||
Prior accident year development | 2 | (10) | ||
Property and Casualty, Personal Insurance Product Line [Member] | Property | ||||
Product Information [Line Items] | ||||
Prior accident year development | 1 | (13) | ||
Property and Casualty, Personal Insurance Product Line [Member] | Automobile | ||||
Product Information [Line Items] | ||||
Prior accident year development | (5) | 0 | ||
Property, Liability and Casualty Insurance Product Line | ||||
Product Information [Line Items] | ||||
Prior accident year development | 24 | (79) | ||
Reinsurance Recoverable for Unpaid Claims and Claims Adjustments | 5,125 | 3,772 | $ 4,232 | $ 3,957 |
Liability for Unpaid Claims and Claims Adjustment Expense, Net | $ 22,623 | 19,859 | $ 20,352 | $ 19,818 |
Scenario, Adjustment [Member] | ||||
Product Information [Line Items] | ||||
Reinsurance Recoverable for Unpaid Claims and Claims Adjustments | 90 | |||
Scenario, Adjustment [Member] | Catastrophes | ||||
Product Information [Line Items] | ||||
Prior accident year development | 123 | |||
Liability for Unpaid Claims and Claims Adjustment Expense, Net | $ 850 |
Reserve for Unpaid Losses and_5
Reserve for Unpaid Losses and Loss Adjustment Expenses - GB Liabilities for Unpaid Losses and Loss Adjustment Expenses (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||
Beginning liabilities for unpaid losses and loss adjustment expenses, gross | $ 33,029 | |
Less: payments | ||
Ending liabilities for unpaid losses and loss adjustment expenses, gross | 36,104 | |
Group Insurance Policies [Member] | ||
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||
Beginning liabilities for unpaid losses and loss adjustment expenses, gross | 8,445 | $ 8,512 |
Reinsurance recoverables | 239 | 209 |
Beginning liabilities for unpaid losses and loss adjustment expenses, net | 8,206 | 8,303 |
Provision for unpaid losses and loss adjustment expense | ||
Current incurral year | 2,269 | 2,317 |
Prior year's discount accretion | 117 | 120 |
Prior incurral year development | (206) | (217) |
Total provision for unpaid losses and loss adjustment expenses | 2,180 | 2,220 |
Less: payments | ||
Current incurral year | 922 | 974 |
Prior incurral years | 1,342 | 1,335 |
Total payments | 2,264 | 2,309 |
Ending liabilities for unpaid losses and loss adjustment expenses, net | 8,122 | 8,214 |
Reinsurance recoverables | 234 | 235 |
Ending liabilities for unpaid losses and loss adjustment expenses, gross | 8,356 | 8,449 |
Group Insurance Policies [Member] | Other Operating Income (Expense) [Member] | ||
Provision for unpaid losses and loss adjustment expense | ||
Total provision for unpaid losses and loss adjustment expenses | $ 85 | $ 85 |
Reserve for Unpaid Losses and_6
Reserve for Unpaid Losses and Loss Adjustment Expenses - GB Additional information (Details) - Group Insurance Policies [Member] - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Prior incurral year development | $ (206) | $ (217) |
Long-term Disability [Member] | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Prior incurral year development | 175 | 150 |
group life term, disability and accident [Member] | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Prior incurral year development | $ 25 | $ 65 |
Reserves for Future Policy Be_2
Reserves for Future Policy Benefits (Details) - Annuitization Benefit - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward] | ||
Beginning Balance | $ 642 | $ 713 |
Incurred | 44 | 14 |
Paid | 55 | 19 |
Change in unrealized investment gains and losses | 13 | (40) |
Ending Balance | 644 | 668 |
Movement in Liabilities for Guarantees on Long-Duration Contracts, Reinsurance Recoverable [Roll Forward] | ||
Beginning Balance | 27 | 26 |
Incurred | 0 | 9 |
Paid | 0 | 0 |
Ending Balance | $ 27 | $ 35 |
Debt - Debt (Details)
Debt - Debt (Details) $ in Millions | 1 Months Ended | |||||
Jun. 17, 2019 | Jun. 30, 2019USD ($) | Jun. 30, 2019AUD ($) | May 23, 2019USD ($) | Jan. 15, 2019USD ($) | Oct. 04, 2013 | |
Debt Instruments [Line Items] | ||||||
Registration Payment Arrangement, Term | three | |||||
Club Facility [Member] | ||||||
Debt Instruments [Line Items] | ||||||
Letters of Credit Outstanding, Amount | $ 165,000,000 | $ 60 | ||||
Bilateral Facility [Member] | ||||||
Debt Instruments [Line Items] | ||||||
Letters of Credit Outstanding, Amount | 8,000,000 | |||||
Debt Instrument, Unused Borrowing Capacity, Amount | 17,000,000 | |||||
Club & Bilateral Facility [Member] | ||||||
Debt Instruments [Line Items] | ||||||
Cash Collateral for Borrowed Securities | 1,000,000 | |||||
Australian Dollar Facility [Member] [Member] | ||||||
Debt Instruments [Line Items] | ||||||
Letters of Credit Outstanding, Amount | $ 24,000,000 | |||||
Senior Note Six Point Zero Percent Due in Two Thousand Nineteen [Member] | Senior Notes | ||||||
Debt Instruments [Line Items] | ||||||
Repayment of debt | $ 413,000,000 | |||||
Interest rate | 6.00% | |||||
Senior Note Five Point Seven Five Percent Due in Two Thousand Twenty Three [Member] | Senior Notes | ||||||
Debt Instruments [Line Items] | ||||||
Interest rate | 5.75% | |||||
Senior Notes | $ 265,000,000 | |||||
Debt Instrument, Fair Value Disclosure | $ 284,000,000 | |||||
Debt Instrument, Interest Rate, Effective Percentage | 4.00% |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Tax provision at U.S. federal statutory rate | $ 95 | $ 112 | $ 258 | $ 221 |
Tax-exempt interest | (14) | (17) | (29) | (34) |
Executive compensation | 1 | 3 | 5 | 7 |
Stock-based compensation | 1 | 0 | 4 | 2 |
Tax Reform | 0 | (5) | 0 | (2) |
Other | 3 | 0 | (1) | 0 |
Provision for income taxes | $ 84 | $ 103 | $ 229 | $ 194 |
Income Taxes - Unrecognized tax
Income Taxes - Unrecognized tax benefit (expense) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||||
Balance, beginning of period | $ 14 | $ 9 | $ 14 | $ 9 |
Gross increases - tax positions in prior period | 0 | 0 | 0 | 0 |
Gross decreases - tax positions in prior period | 0 | 0 | 0 | 0 |
Balance, end of period | $ 14 | $ 9 | $ 14 | $ 9 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Operating Loss Carryforwards [Line Items] | ||||
Deferred Tax Assets, Tax Credit Carryforwards, Other | $ 835 | $ 835 | ||
Deferred Tax Assets, Tax Credit Carryforwards | 4 | 6 | ||
Income Tax Examination, Penalties and Interest Expense | 0 | $ 0 | 0 | $ 0 |
Income Tax Examination, Interest Accrued | 0 | $ 0 | 0 | $ 0 |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 0 | 0 | ||
Income Tax Examination, Penalties Accrued | $ 0 | 0 | ||
UNITED STATES | ||||
Operating Loss Carryforwards [Line Items] | ||||
Deferred Other Tax Expense (Benefit) | 352 | |||
UNITED KINGDOM | ||||
Operating Loss Carryforwards [Line Items] | ||||
Deferred Other Tax Expense (Benefit) | $ 2 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2016 | |
Asbestos | ||
Loss Contingencies [Line Items] | ||
Liability for unpaid losses and loss adjustment expenses, at undiscounted amounts | $ 935 | |
Environmental | ||
Loss Contingencies [Line Items] | ||
Liability for unpaid losses and loss adjustment expenses, at undiscounted amounts | 139 | |
Asbestos and Environmental | ||
Loss Contingencies [Line Items] | ||
Reinsurance premium | $ 650 | |
Maximum adverse loss development to be ceded under agreement | 977 | |
Reinsurance Retention Policy, Amount Retained | 1,700 | |
Reinsurance Retention Policy, Excess Retention, Amount Reinsured | 523 | |
Asbestos and Environmental | Maximum | ||
Loss Contingencies [Line Items] | ||
Maximum adverse loss development to be ceded under agreement | $ 1,500 |
Commitments and Contingencies_2
Commitments and Contingencies - Derivative Instruments (Details) $ in Millions | Jun. 30, 2019USD ($) |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative, Net Liability Position, Aggregate Fair Value | $ 76 |
Collateral Already Posted, Aggregate Fair Value | 72 |
Additional Collateral, Aggregate Fair Value | $ 7 |
Equity - Capital Purchase Progr
Equity - Capital Purchase Program Warrants (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Jul. 31, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Class of Warrant or Right [Line Items] | ||||||
Warrants outstanding | 1,900,000 | |||||
Treasury Stock, Shares, Acquired | 500,000 | |||||
Treasury Stock, Value, Acquired, Cost Method | $ 27 | |||||
Warrant [Member] | ||||||
Class of Warrant or Right [Line Items] | ||||||
Warrants Exercised | 1,000,000 | 100,000 | 1,900,000 | 100,000 | ||
Subsequent Event [Member] | ||||||
Class of Warrant or Right [Line Items] | ||||||
Treasury Stock, Shares, Acquired | 0.3 | |||||
Treasury Stock, Value, Acquired, Cost Method | $ 16 |
Equity ~Treasury Stock, Value (
Equity ~Treasury Stock, Value (Details) - USD ($) $ / shares in Thousands, shares in Millions, $ in Millions | 3 Months Ended | |
Jun. 30, 2019 | Mar. 31, 2019 | |
Equity, Class of Treasury Stock [Line Items] | ||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | $ 1,000 | |
Treasury Stock, Shares, Acquired | 0.5 | |
Treasury Stock, Value, Acquired, Cost Method | $ 27 | |
Treasury Stock Acquired, Average Cost Per Share | $ 53,840 | |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 973 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income Loss - AOCI Rollforward (Details) - USD ($) $ in Millions | Jan. 01, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Beginning balance | $ 13,101 | ||||||||
OCI, net of tax | $ 687 | $ (1,114) | 1,381 | $ (2,011) | |||||
Ending balance | 15,292 | 12,546 | 15,292 | 12,546 | |||||
TaxCutsAndJobsActOf2017ReclassificationFromAociToRetainedEarningsTaxEffect | $ (88) | ||||||||
Equity securities and shadow DAC [Member] | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Cumulative effect of accounting changes, net of tax [1] | 93 | ||||||||
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Beginning balance | 1,931 | 703 | 1,349 | 24 | 1,931 | ||||
Cumulative effect of accounting changes, net of tax [1] | $ 273 | ||||||||
Adjusted balance, beginning of period | 2,204 | ||||||||
OCI before reclassifications | 703 | (1,148) | 1,399 | (2,030) | |||||
Amounts reclassified from AOCI | (39) | 10 | (56) | 37 | |||||
OCI, net of tax | 664 | (1,138) | 1,343 | (1,993) | |||||
Ending balance | 1,367 | 211 | 1,367 | 211 | |||||
Accumulated Other-than-Temporary Impairment Attributable to Parent [Member] | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Beginning balance | (3) | (3) | (5) | (4) | (3) | ||||
Cumulative effect of accounting changes, net of tax [1] | 0 | ||||||||
Adjusted balance, beginning of period | (3) | ||||||||
OCI before reclassifications | 0 | 3 | 1 | 1 | |||||
Amounts reclassified from AOCI | 0 | (1) | 0 | (1) | |||||
OCI, net of tax | 0 | 2 | 1 | 0 | |||||
Ending balance | (3) | (3) | (3) | (3) | |||||
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Beginning balance | 18 | 0 | (24) | (5) | 18 | ||||
Cumulative effect of accounting changes, net of tax [1] | 2 | ||||||||
Adjusted balance, beginning of period | 20 | ||||||||
OCI before reclassifications | 13 | 18 | 19 | (13) | |||||
Amounts reclassified from AOCI | (2) | (6) | (3) | (19) | |||||
OCI, net of tax | 11 | 12 | 16 | (32) | |||||
Ending balance | 11 | (12) | 11 | (12) | |||||
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Beginning balance | 34 | 31 | 32 | 30 | 34 | ||||
Cumulative effect of accounting changes, net of tax [1] | 4 | ||||||||
Adjusted balance, beginning of period | 38 | ||||||||
OCI before reclassifications | 3 | 1 | 4 | (5) | |||||
Amounts reclassified from AOCI | 0 | 0 | 0 | 0 | |||||
OCI, net of tax | 3 | 1 | 4 | (5) | |||||
Ending balance | 34 | 33 | 34 | 33 | |||||
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Beginning balance | (1,317) | (1,616) | (1,591) | (1,624) | (1,317) | ||||
Cumulative effect of accounting changes, net of tax [1] | (284) | ||||||||
Adjusted balance, beginning of period | (1,601) | ||||||||
OCI before reclassifications | 0 | (1) | 0 | (1) | |||||
Amounts reclassified from AOCI | 9 | 10 | 17 | 20 | |||||
OCI, net of tax | 9 | 9 | 17 | 19 | |||||
Ending balance | (1,607) | (1,582) | (1,607) | (1,582) | |||||
AOCI Attributable to Parent [Member] | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Beginning balance | $ 663 | (885) | (239) | (1,579) | 663 | ||||
Cumulative effect of accounting changes, net of tax [1] | $ 0 | $ 0 | $ 0 | (5) | |||||
Adjusted balance, beginning of period | $ (885) | $ (1,579) | $ (239) | $ 658 | |||||
OCI before reclassifications | 719 | (1,127) | 1,423 | (2,048) | |||||
Amounts reclassified from AOCI | (32) | 13 | (42) | 37 | |||||
OCI, net of tax | 687 | (1,114) | 1,381 | (2,011) | |||||
Ending balance | $ (198) | (1,353) | $ (198) | (1,353) | |||||
Discontinued Operations, Disposed of by Sale [Member] | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Disposal Group, Including Discontinued Operations, Adjustments to AOCI | $ 758 | $ 758 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income Loss - Reclassifications from AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Net realized capital gains | $ 80 | $ 52 | $ 245 | $ 22 |
Income from continuing operations, before tax | 456 | 537 | 1,231 | 1,056 |
Income tax expense | 84 | 103 | 229 | 194 |
Income from discontinued operations, net of tax | 0 | 148 | 0 | 317 |
Net Investment Income | 488 | 428 | 958 | 879 |
Interest Expense | 63 | 79 | 127 | 159 |
Net income | 372 | 582 | 1,002 | 1,179 |
Insurance operating costs and other expenses | 1,141 | 1,067 | 2,189 | 2,104 |
Reclassification out of Accumulated Other Comprehensive Income | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 32 | (13) | 42 | (37) |
Net Unrealized Gain on Securities | Reclassification out of Accumulated Other Comprehensive Income | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Net realized capital gains | 50 | (6) | 71 | (44) |
Income from continuing operations, before tax | 50 | (6) | 71 | (44) |
Income tax expense | 11 | (1) | 15 | (9) |
Income from discontinued operations, net of tax | (5) | (2) | ||
Net income | 39 | (10) | 56 | (37) |
Accumulated Other-than-Temporary Impairment Attributable to Parent [Member] | Reclassification out of Accumulated Other Comprehensive Income | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Net realized capital gains | 0 | 0 | ||
Income from continuing operations, before tax | 0 | 0 | ||
Income tax expense | 0 | 0 | ||
Income from discontinued operations, net of tax | 1 | 1 | ||
Net income | 1 | 1 | ||
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent | Reclassification out of Accumulated Other Comprehensive Income | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Income from continuing operations, before tax | 3 | 9 | 4 | 18 |
Income tax expense | 1 | 2 | 1 | 4 |
Income from discontinued operations, net of tax | (1) | 5 | ||
Net income | 2 | 6 | 3 | 19 |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent | Reclassification out of Accumulated Other Comprehensive Income | Currency Swap [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Net Investment Income | 0 | 1 | ||
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent | Reclassification out of Accumulated Other Comprehensive Income | Interest rate swaps | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Net realized capital gains | 2 | 0 | 2 | 1 |
Net Investment Income | 0 | 9 | 0 | 17 |
Interest Expense | 1 | 1 | ||
Amortization of prior service credit | Reclassification out of Accumulated Other Comprehensive Income | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Insurance operating costs and other expenses | 2 | 2 | 3 | 3 |
Amortization of actuarial loss | Reclassification out of Accumulated Other Comprehensive Income | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Insurance operating costs and other expenses | (13) | (15) | (25) | (28) |
Pension and Other Postretirement Plan Adjustments | Reclassification out of Accumulated Other Comprehensive Income | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Income from continuing operations, before tax | (11) | (13) | (22) | (25) |
Income tax expense | (2) | (3) | (5) | (5) |
Net income | $ (9) | $ (10) | $ (17) | $ (20) |
Employee Benefit Plans - Compon
Employee Benefit Plans - Components of Net Periodic Benefit Cost (Benefit) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Pension Plan [Member] | ||||
Component of periodic benefit cost | ||||
Service cost | $ 1 | $ 1 | $ 2 | $ 2 |
Interest cost | (40) | (36) | (79) | (71) |
Expected return on plan assets | (56) | (59) | (113) | (115) |
Amortization of actuarial loss | (11) | (13) | (22) | (25) |
Net periodic cost (benefit) | (4) | (9) | (10) | (17) |
Other Postretirement Benefits Plan [Member] | ||||
Component of periodic benefit cost | ||||
Service cost | 0 | 0 | 0 | 0 |
Interest cost | (2) | (1) | (4) | (3) |
Expected return on plan assets | (1) | (1) | (2) | (3) |
Amortization of prior service credit | (2) | (2) | (3) | (3) |
Amortization of actuarial loss | (2) | (2) | (3) | (3) |
Net periodic cost (benefit) | $ 1 | $ 0 | $ 2 | $ 0 |
Business Disposition and Disc_2
Business Disposition and Discontinued Operations - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | May 31, 2018 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Income (Loss) from Ongoing Equity Method Investment in Discontinued Operation after Disposal | $ 3 | $ 31 | |||
Discontinued Operations, Held-for-sale or Disposed of by Sale [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Ownership interest retained, percentage | 9.70% | ||||
Discontinued Operation, Amount of Adjustment to Prior Period Gain (Loss) on Disposal, Net of Tax | $ 151 | $ 213 |
Business Disposition and Disc_3
Business Disposition and Discontinued Operations - Reconciliation of the Major Line Items Constituting Pretax Profit (Loss) of Discontinued Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Benefits, losses and expenses | ||||
Income from discontinued operations, net of tax | $ 0 | $ 148 | $ 0 | $ 317 |
Discontinued Operations, Held-for-sale or Disposed of by Sale [Member] | ||||
Revenues | ||||
Earned premiums | 12 | 39 | ||
Fee income and other | 150 | 382 | ||
Net investment income | 207 | 519 | ||
Net realized capital losses | (93) | (72) | ||
Total revenues | 276 | 868 | ||
Benefits, losses and expenses | ||||
Benefits, losses and loss adjustment expenses | 207 | 535 | ||
Amortization of DAC | 17 | 58 | ||
Insurance operating costs and other expenses [1] | 61 | 162 | ||
Total benefits, losses and expenses | 285 | 755 | ||
Income (loss) before income taxes | (9) | 113 | ||
Income tax expense (benefit) | (6) | 9 | ||
Income (loss) from operations of discontinued operations, net of tax | (3) | 104 | ||
Net realized capital gain on disposal, net of tax | 151 | 213 | ||
Income from discontinued operations, net of tax | $ 148 | $ 317 |
Business Disposition and Disc_4
Business Disposition and Discontinued Operations - Cash Flows from Discontinued Operations (Details) - Discontinued Operations, Held-for-sale or Disposed of by Sale [Member] $ in Millions | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Net cash provided by operating activities from discontinued operations | $ 603 |
Net cash provided by investing activities from discontinued operations | 463 |
Net cash used in financing activities from discontinued operations [1] | (737) |
Cash paid for interest | 0 |
Payments of Capital Distribution | $ 619 |
Leases Additional Information (
Leases Additional Information (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Jan. 01, 2019 |
Leases [Abstract] | ||
Operating Lease, Right-of-Use Asset | $ 216 | $ 150 |
Operating Lease, Liability | $ 226 |
Leases Components of Lease Expe
Leases Components of Lease Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Leases [Abstract] | ||
Operating lease cost | $ 12 | $ 23 |
Short-term lease cost | 0 | 1 |
Variable lease cost | 0 | 0 |
Sublease income | (1) | (2) |
Total lease costs included in insurance operating costs and other expenses | $ 11 | $ 22 |
Leases Supplemental Operating L
Leases Supplemental Operating Lease Information (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Leases [Abstract] | |
Operating cash flows for operating leases (for the six months ended) | $ 22 |
Weighted-average remaining lease term in years for operating leases | 6 years |
Weighted-average discount rate for operating leases | 3.60% |
Leases Future Minimum Lease Pay
Leases Future Minimum Lease Payments (Details) $ in Millions | Jun. 30, 2019USD ($) |
Leases [Abstract] | |
2019 | $ 27 |
2020 | 51 |
2021 | 40 |
2022 | 34 |
2023 | 31 |
Thereafter | 68 |
Total future minimum lease payments | 251 |
Less: Discount on lease payments to present value | 25 |
Total lease liability | $ 226 |
Uncategorized Items - hig630201
Label | Element | Value |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | us-gaap_CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents | $ 180,000,000 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | us-gaap_CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents | $ 121,000,000 |