Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Aug. 08, 2019 | |
Cover page. | ||
Entity Address, Address Line One | 200 Park Avenue | |
Document Type | 10-Q | |
Entity Registrant Name | Metropolitan Life Insurance Co | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 000-55029 | |
Entity Incorporation, State or Country Code | NY | |
Entity Tax Identification Number | 13-5581829 | |
Entity Address, Postal Zip Code | 10166-0188 | |
City Area Code | 212 | |
Local Phone Number | 578-9500 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Central Index Key | 0000937834 | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 494,466,664 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | NY |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Investments: | ||
Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $152,346 and $155,175, respectively) | $ 165,102 | $ 159,073 |
Equity securities, at estimated fair value | 805 | 773 |
Mortgage loans (net of valuation allowances of $300 and $291, respectively; includes $210 and $210, respectively, relating to variable interest entities; includes $262 and $299, respectively, under the fair value option) | 64,671 | 63,687 |
Policy loans | 6,064 | 6,061 |
Real estate and real estate joint ventures (includes $1,409 and $1,394, respectively, relating to variable interest entities) | 6,414 | 6,152 |
Other limited partnership interests | 4,647 | 4,481 |
Short-term investments, principally at estimated fair value | 1,127 | 1,506 |
Other invested assets (includes $1,137 and $1,130, respectively, of leveraged and direct financing leases and $108 and $113, respectively, relating to variable interest entities) | 16,840 | 15,690 |
Total investments | 265,670 | 257,423 |
Cash and cash equivalents, principally at estimated fair value (includes $23 and $14, respectively, relating to variable interest entities) | 9,269 | 6,882 |
Accrued investment income (includes $1 and $1, respectively, relating to variable interest entities) | 2,014 | 2,050 |
Premiums, reinsurance and other receivables (includes $3 and $2, respectively, relating to variable interest entities) | 22,752 | 21,829 |
Deferred policy acquisition costs and value of business acquired | 3,687 | 4,117 |
Deferred income tax asset | 0 | 43 |
Other assets (includes $2 and $2, respectively, relating to variable interest entities) | 4,539 | 3,723 |
Separate account assets | 120,172 | 110,850 |
Total assets | 428,103 | 406,917 |
Liabilities | ||
Future policy benefits | 126,717 | 126,099 |
Policyholder account balances | 92,625 | 90,656 |
Other policy-related balances | 7,609 | 7,264 |
Policyholder dividends payable | 520 | 494 |
Policyholder dividend obligation | 1,834 | 428 |
Payables for collateral under securities loaned and other transactions | 18,263 | 18,472 |
Short-term debt | 128 | 129 |
Long-term debt (includes $5 and $5, respectively, at estimated fair value, relating to variable interest entities) | 1,554 | 1,567 |
Current income tax payable | 1 | 611 |
Deferred income tax liability | 1,506 | 0 |
Other liabilities | 26,502 | 24,620 |
Separate account liabilities | 120,172 | 110,850 |
Total liabilities | 397,431 | 381,190 |
Contingencies, Commitments and Guarantees (Note 13) | ||
Metropolitan Life Insurance Company stockholder’s equity: | ||
Common stock, par value $0.01 per share; 1,000,000,000 shares authorized; 494,466,664 shares issued and outstanding | 5 | 5 |
Additional paid-in capital | 12,452 | 12,450 |
Retained earnings | 9,018 | 9,512 |
Accumulated other comprehensive income (loss) | 8,990 | 3,562 |
Total Metropolitan Life Insurance Company stockholder’s equity | 30,465 | 25,529 |
Noncontrolling interests | 207 | 198 |
Total equity | 30,672 | 25,727 |
Total liabilities and equity | $ 428,103 | $ 406,917 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Assets | ||
Amortized cost of fixed maturity securities available-for-sale | $ 152,346 | $ 155,175 |
Mortgage loans valuation allowances | 300 | 291 |
Mortgage loans, at estimated fair value, relating to variable interest entities | 64,671 | 63,687 |
Real estate and real estate joint ventures relating to variable interest entities | 6,414 | 6,152 |
Leveraged and direct financing leases | 1,137 | 1,130 |
Other invested assets relating to variable interest entities | 16,840 | 15,690 |
Cash and cash equivalents relating to variable interest entities | 9,269 | 6,882 |
Accrued investment income relating to variable interest entities | 2,014 | 2,050 |
Premiums, reinsurance and other receivables relating to variable interest entities | 22,752 | 21,829 |
Other assets relating to variable interest entities | 4,539 | 3,723 |
Liabilities | ||
Long-term debt, at estimated fair value, relating to variable interest entities | $ 1,554 | $ 1,567 |
Metropolitan Life Insurance Company stockholder’s equity: | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 494,466,664 | 494,466,664 |
Common stock, shares outstanding | 494,466,664 | 494,466,664 |
Residential mortgage loans - FVO | ||
Assets | ||
Mortgage loans, at estimated fair value, relating to variable interest entities | $ 262 | $ 299 |
Variable interest entities | ||
Assets | ||
Mortgage loans, at estimated fair value, relating to variable interest entities | 210 | 210 |
Real estate and real estate joint ventures relating to variable interest entities | 1,409 | 1,394 |
Other invested assets relating to variable interest entities | 108 | 113 |
Cash and cash equivalents relating to variable interest entities | 23 | 14 |
Accrued investment income relating to variable interest entities | 1 | 1 |
Premiums, reinsurance and other receivables relating to variable interest entities | 3 | 2 |
Other assets relating to variable interest entities | 2 | 2 |
Liabilities | ||
Long-term debt, at estimated fair value, relating to variable interest entities | $ 5 | $ 5 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenues | ||||
Premiums | $ 5,154 | $ 10,920 | $ 10,206 | $ 15,869 |
Universal life and investment-type product policy fees | 521 | 529 | 1,024 | 1,060 |
Net investment income | 2,794 | 2,684 | 5,439 | 5,385 |
Other revenues | 403 | 401 | 804 | 802 |
Net investment gains (losses) | 66 | (30) | 12 | (226) |
Net derivative gains (losses) | 208 | 305 | (102) | 365 |
Total revenues | 9,146 | 14,809 | 17,383 | 23,255 |
Expenses | ||||
Policyholder benefits and claims | 5,765 | 11,552 | 11,427 | 17,066 |
Interest credited to policyholder account balances | 663 | 612 | 1,325 | 1,193 |
Policyholder dividends | 260 | 268 | 517 | 530 |
Other expenses | 1,235 | 1,277 | 2,383 | 2,631 |
Total expenses | 7,923 | 13,709 | 15,652 | 21,420 |
Income (loss) before provision for income tax | 1,223 | 1,100 | 1,731 | 1,835 |
Provision for income tax expense (benefit) | 156 | 93 | 156 | 156 |
Net income (loss) | 1,067 | 1,007 | 1,575 | 1,679 |
Less: Net income (loss) attributable to noncontrolling interests | 0 | 5 | 1 | 8 |
Net income (loss) attributable to Metropolitan Life Insurance Company | 1,067 | 1,002 | 1,574 | 1,671 |
Comprehensive income (loss) | 3,540 | (191) | 6,986 | (1,886) |
Less: Comprehensive income (loss) attributable to noncontrolling interests, net of income tax | 0 | 5 | 1 | 8 |
Comprehensive income (loss) attributable to Metropolitan Life Insurance Company | $ 3,540 | $ (196) | $ 6,985 | $ (1,894) |
Consolidated Statements of Equi
Consolidated Statements of Equity (Unaudited) - USD ($) $ in Millions | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total Metropolitan Life Insurance Company Stockholder’s Equity | Noncontrolling Interests |
Cumulative effects of changes in accounting principles, net of income tax | $ 7 | $ (917) | $ 924 | $ 7 | |||
Stockholder's Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | 29,768 | $ 5 | $ 14,150 | 9,118 | 6,352 | 29,625 | $ 143 |
Beginning Balance at Dec. 31, 2017 | 29,761 | 5 | 14,150 | 10,035 | 5,428 | 29,618 | 143 |
Capital contributions from MetLife, Inc. | 1 | 1 | 1 | ||||
Dividends paid to MetLife, Inc. | (1,000) | (1,000) | (1,000) | ||||
Change in equity of noncontrolling interests | 59 | 0 | 59 | ||||
Net Income (Loss) | 672 | 669 | 669 | 3 | |||
Other comprehensive income (loss), net of income tax | (2,367) | (2,367) | (2,367) | ||||
Ending Balance at Mar. 31, 2018 | 27,133 | 5 | 14,151 | 8,787 | 3,985 | 26,928 | 205 |
Beginning Balance at Dec. 31, 2017 | 29,761 | 5 | 14,150 | 10,035 | 5,428 | 29,618 | 143 |
Net Income (Loss) | 1,679 | ||||||
Ending Balance at Jun. 30, 2018 | 26,231 | 5 | 14,151 | 9,084 | 2,787 | 26,027 | 204 |
Beginning Balance at Mar. 31, 2018 | 27,133 | 5 | 14,151 | 8,787 | 3,985 | 26,928 | 205 |
Capital contributions from MetLife, Inc. | 2 | 2 | 2 | ||||
Returns of Capital | (2) | (2) | (2) | ||||
Dividends paid to MetLife, Inc. | (705) | (705) | (705) | ||||
Change in equity of noncontrolling interests | (6) | 0 | (6) | ||||
Net Income (Loss) | 1,007 | 1,002 | 1,002 | 5 | |||
Other comprehensive income (loss), net of income tax | (1,198) | (1,198) | (1,198) | ||||
Ending Balance at Jun. 30, 2018 | 26,231 | 5 | 14,151 | 9,084 | 2,787 | 26,027 | 204 |
Cumulative effects of changes in accounting principles, net of income tax | 95 | 78 | 17 | 95 | |||
Stockholder's Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | 25,822 | 5 | 12,450 | 9,590 | 3,579 | 25,624 | 198 |
Beginning Balance at Dec. 31, 2018 | 25,727 | 5 | 12,450 | 9,512 | 3,562 | 25,529 | 198 |
Capital contributions from MetLife, Inc. | 1 | 1 | 1 | ||||
Dividends paid to MetLife, Inc. | (2,146) | (2,146) | (2,146) | ||||
Change in equity of noncontrolling interests | (4) | 0 | (4) | ||||
Net Income (Loss) | 508 | 507 | 507 | 1 | |||
Other comprehensive income (loss), net of income tax | 2,938 | 2,938 | 2,938 | ||||
Ending Balance at Mar. 31, 2019 | 27,119 | 5 | 12,451 | 7,951 | 6,517 | 26,924 | 195 |
Beginning Balance at Dec. 31, 2018 | 25,727 | 5 | 12,450 | 9,512 | 3,562 | 25,529 | 198 |
Net Income (Loss) | 1,575 | ||||||
Ending Balance at Jun. 30, 2019 | 30,672 | 5 | 12,452 | 9,018 | 8,990 | 30,465 | 207 |
Beginning Balance at Mar. 31, 2019 | 27,119 | 5 | 12,451 | 7,951 | 6,517 | 26,924 | 195 |
Capital contributions from MetLife, Inc. | 1 | 1 | 1 | ||||
Change in equity of noncontrolling interests | 12 | 0 | 12 | ||||
Net Income (Loss) | 1,067 | 1,067 | 1,067 | ||||
Other comprehensive income (loss), net of income tax | 2,473 | 2,473 | 2,473 | ||||
Ending Balance at Jun. 30, 2019 | $ 30,672 | $ 5 | $ 12,452 | $ 9,018 | $ 8,990 | $ 30,465 | $ 207 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Cash Flows [Abstract] | ||
Net cash provided by (used in) operating activities | $ 2,009 | $ 4,881 |
Cash flows from investing activities | ||
Sales, maturities and repayments of fixed maturity securities available-for-sale | 28,997 | 33,260 |
Sales, maturities and repayments of equity securities | 83 | 80 |
Sales, maturities and repayments of mortgage loans | 4,763 | 4,041 |
Sales, maturities and repayments of real estate and real estate joint ventures | 110 | 342 |
Sales, maturities and repayments of other limited partnership interests | 269 | 219 |
Purchases of fixed maturity securities available-for-sale | (25,773) | (32,814) |
Purchases of equity securities | (31) | (95) |
Purchases of mortgage loans | (5,779) | (5,421) |
Purchases of real estate and real estate joint ventures | (493) | (250) |
Purchases of other limited partnership interests | (463) | (326) |
Cash received in connection with freestanding derivatives | 958 | 1,178 |
Cash paid in connection with freestanding derivatives | (1,261) | (1,667) |
Net change in policy loans | (3) | (13) |
Net change in short-term investments | 397 | 1,400 |
Net change in other invested assets | 147 | 238 |
Net change in property, equipment and leasehold improvements | (8) | 216 |
Other, net | 9 | (36) |
Net cash provided by (used in) investing activities | 1,922 | 352 |
Cash flows from financing activities | ||
Policyholder account balances: Deposits | 35,914 | 37,730 |
Policyholder account balances: Withdrawals | (35,034) | (39,860) |
Net change in payables for collateral under securities loaned and other transactions | (209) | 675 |
Long-term debt issued | 0 | 14 |
Long-term debt repaid | (17) | (39) |
Financing element on certain derivative instruments and other derivative related transactions, net | (49) | (63) |
Dividends paid to MetLife, Inc. | (2,146) | (1,705) |
Other, net | 4 | 73 |
Net cash provided by (used in) financing activities | (1,537) | (3,175) |
Effect of change in foreign currency exchange rates on cash and cash equivalents balances | (7) | 1 |
Change in cash and cash equivalents | 2,387 | 2,059 |
Cash and cash equivalents, beginning of period | 6,882 | 5,069 |
Cash and cash equivalents, end of period | 9,269 | 7,128 |
Supplemental disclosures of cash flow information | ||
Net cash paid for Interest | 52 | 53 |
Net cash paid (received) for Income tax | 402 | 253 |
Non-cash transactions: | ||
Capital contributions from MetLife, Inc. | 2 | 3 |
Fixed maturity securities available-for-sale received in connection with pension risk transfer transaction | 0 | 3,016 |
Reclassification of certain equity securities to other invested assets | $ 0 | $ 733 |
Business, Basis of Presentation
Business, Basis of Presentation and Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business, Basis of Presentation and Summary of Significant Accounting Policies | 1. Business, Basis of Presentation and Summary of Significant Accounting Policies Business Metropolitan Life Insurance Company and its subsidiaries (collectively, “MLIC” or the “Company”) is a provider of insurance, annuities, employee benefits and asset management and is organized into two segments: U.S. and MetLife Holdings. Metropolitan Life Insurance Company is a wholly-owned subsidiary of MetLife, Inc. (MetLife, Inc., together with its subsidiaries and affiliates, “MetLife”). Basis of Presentation The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to adopt accounting policies and make estimates and assumptions that affect amounts reported on the interim condensed consolidated financial statements. In applying these policies and estimates, management makes subjective and complex judgments that frequently require assumptions about matters that are inherently uncertain. Many of these policies, estimates and related judgments are common in the insurance and financial services industries; others are specific to the Company’s business and operations. Actual results could differ from these estimates. The accompanying interim condensed consolidated financial statements are unaudited and reflect all adjustments (including normal recurring adjustments) necessary to present fairly the financial position, results of operations and cash flows for the interim periods presented in conformity with GAAP. Interim results are not necessarily indicative of full year performance. The December 31, 2018 consolidated balance sheet data was derived from audited consolidated financial statements included in Metropolitan Life Insurance Company’s Annual Report on Form 10-K for the year ended December 31, 2018 (the “2018 Annual Report”) , which include all disclosures required by GAAP. Therefore, these interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements of the Company included in the 2018 Annual Report. Consolidation The accompanying interim condensed consolidated financial statements include the accounts of Metropolitan Life Insurance Company and its subsidiaries, as well as partnerships and joint ventures in which the Company has control, and variable interest entities (“VIEs”) for which the Company is the primary beneficiary. Intercompany accounts and transactions have been eliminated. The Company uses the equity method of accounting for real estate joint ventures and other limited partnership interests (“investee”) when it has more than a minor ownership interest or more than a minor influence over the investee’s operations. The Company generally recognizes its share of the investee’s earnings in net investment income on a three-month lag in instances where the investee’s financial information is not sufficiently timely or when the investee’s reporting period differs from the Company’s reporting period. Since the Company is a member of a controlled group of affiliated companies, its results may not be indicative of those of a stand-alone entity. Reclassifications Certain amounts in the prior year periods’ interim condensed consolidated financial statements and related footnotes thereto have been reclassified to conform to the 2019 presentation as discussed throughout the Notes to the Interim Condensed Consolidated Financial Statements. Recent Accounting Pronouncements Changes to GAAP are established by the Financial Accounting Standards Board (“FASB”) in the form of accounting standards updates (“ASUs”) to the FASB Accounting Standards Codification. The Company considers the applicability and impact of all ASUs. The following tables provide a description of new ASUs issued by the FASB and the impact of the adoption on the Company’s consolidated financial statements. Adoption of New Accounting Pronouncements Except as noted below, the ASUs adopted by the Company effective January 1, 2019 did not have a material impact on its consolidated financial statements. Standard Description Effective Date and Method of Adoption Impact on Financial Statements ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities, as clarified and amended by ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments The new guidance simplifies the application of hedge accounting in certain situations and amends the hedge accounting model to enable entities to better portray the economics of their risk management activities in their financial statements. January 1, 2019. The Company adopted using a modified retrospective approach. The adoption of the guidance resulted in an $18 million, net of income tax, increase to accumulated other comprehensive income (loss) (“AOCI”) with a corresponding decrease to retained earnings due to the reclassification of hedge ineffectiveness for cash flow hedging relationships existing as of January 1, 2019. The Company has included the expanded disclosures within Note 6. ASU 2016-02, Leases (Topic 842), as clarified and amended by ASU 2018-10, Codification Improvements to Topic 842, Leases, ASU 2018-11 , Leases (Topic 842): Targeted Improvements, and ASU 2018-20 , Leases (Topic 842): Narrow-Scope Improvements for Lessors The new guidance requires a lessee to recognize assets and liabilities for leases with lease terms of more than 12 months. Leases are classified as finance or operating leases and both types of leases are recognized on the balance sheet. Lessor accounting remains largely unchanged from previous guidance except for certain targeted changes. The new guidance also requires new qualitative and quantitative disclosures. In July 2018, two amendments to the new guidance were issued. The amendments provide the option to adopt the new guidance prospectively without adjusting comparative periods. Also, the amendments provide lessors with a practical expedient not to separate lease and non-lease components for certain operating leases. In December 2018, an amendment was issued to clarify lessor accounting relating to taxes, certain lessor’s costs and variable payments related to both lease and non-lease components. January 1, 2019. The Company adopted using a modified retrospective approach. The Company elected the package of practical expedients allowed under the transition guidance. This allowed the Company to carry forward its historical lease classification. In addition, the Company elected all other practical expedients that were allowed under the new guidance and were applicable, including the practical expedient to combine lease and non-lease components into one lease component for certain real estate leases. The adoption of this guidance resulted in the recording of additional net right-of-use (“ROU”) assets and lease liabilities of approximately $818 million and $902 million, respectively, as of January 1, 2019. The reduction of the ROU assets was a result of adjustments for prepaid/deferred rent, unamortized initial direct costs and impairment of certain ROU assets based on the net present value of the remaining minimum lease payments and sublease revenues. In addition, retained earnings increased by $95 million, net of income tax, as a result of the recognition of deferred gains on previous sale leaseback transactions. The guidance did not have a material impact on the Company’s consolidated net income and cash flows. The Company has included expanded disclosures on the consolidated balance sheets and in Notes 5 and 8. Future Adoption of New Accounting Pronouncements ASUs not listed below were assessed and either determined to be not applicable or are not expected to have a material impact on the Company’s consolidated financial statements. ASUs issued but not yet adopted as of June 30, 2019 that are currently being assessed and may or may not have a material impact on the Company’s consolidated financial statements are summarized in the table below. Standard Description Effective Date and Method of Adoption Impact on Financial Statements ASU 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract The new guidance requires a customer in a cloud computing arrangement that is a service contract to follow the internal-use software guidance to determine which implementation costs to capitalize as an asset and which costs to expense as incurred. Implementation costs that are capitalized under the new guidance are required to be amortized over the term of the hosting arrangement, beginning when the module or component of the hosting arrangement is ready for its intended use. January 1, 2020. The new guidance can be applied either prospectively to eligible costs incurred on or after the guidance is first applied, or retrospectively to all periods presented. The new guidance will not have a material impact on the Company’s consolidated financial statements and will be adopted prospectively. ASU 2018-14, Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans The new guidance removes certain disclosures that no longer are considered cost beneficial, clarifies the specific requirements of disclosures, and adds disclosure requirements identified as relevant for employers that sponsor defined benefit pension or other postretirement plans. December 31, 2020, to be applied on a retrospective basis to all periods presented (with early adoption permitted). The new guidance will not have a material impact on the Company’s consolidated financial statements. ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement The new guidance modifies the disclosure requirements on fair value by removing some requirements, modifying others, adding changes in unrealized gains and losses included in other comprehensive income (loss) (“OCI”) for recurring Level 3 fair value measurements, and under certain circumstances, providing the option to disclose certain other quantitative information with respect to significant unobservable inputs in lieu of a weighted average. January 1, 2020. Amendments related to changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively. All other amendments should be applied retrospectively. As of December 31, 2018, the Company early adopted the provisions of the guidance that removed the requirements relating to transfers between fair value hierarchy levels and certain disclosures about valuation processes for Level 3 fair value measurements. The Company will adopt the remainder of the new guidance at the effective date. The new guidance will not have a material impact on the Company’s consolidated financial statements. ASU 2018-12, Financial Services—Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts The new guidance (i) prescribes the discount rate to be used in measuring the liability for future policy benefits for traditional and limited payment long-duration contracts, and requires assumptions for those liability valuations to be updated after contract inception, (ii) requires more market-based product guarantees on certain separate account and other account balance long-duration contracts to be accounted for at fair value, (iii) simplifies the amortization of deferred policy acquisition costs (“DAC”) for virtually all long-duration contracts, and (iv) introduces certain financial statement presentation requirements, as well as significant additional quantitative and qualitative disclosures. January 1, 2021, to be applied retrospectively to January 1, 2019 (with early adoption permitted). The Company has started its implementation efforts and is currently evaluating the impact of the new guidance. Given the nature and extent of the required changes to a significant portion of the Company’s operations, the adoption of this guidance is expected to have a material impact on its consolidated financial statements. Standard Description Effective Date and Method of Adoption Impact on Financial Statements ASU 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment The new guidance simplifies the current two-step goodwill impairment test by eliminating Step 2 of the test. The new guidance requires a one-step impairment test in which an entity compares the fair value of a reporting unit with its carrying amount and recognizes an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value, if any. January 1, 2020, to be applied on a prospective basis. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The new guidance will reduce the complexity involved with the evaluation of goodwill for impairment. The impact of the new guidance will depend on the outcomes of future goodwill impairment tests. ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, as clarified and amended by ASU 2018-19 , Codification Improvements to Topic 326, Financial Instruments—Credit Losses, ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments and ASU 2019-05 , Financial Instruments—Credit Losses (Topic 326): Targeted Transition Relief This new guidance requires an allowance for credit losses based on the expectation of lifetime credit losses on financing receivables carried at amortized cost, including, but not limited to, mortgage loans, premium receivables, reinsurance receivables and certain leases. The current model for other-than-temporary impairment (“OTTI”) on available-for-sale (“AFS”) debt securities has been modified and requires the recording of an allowance for credit losses rather than a reduction of the carrying value. Any improvements in expected future cash flows will no longer be reflected as a prospective yield adjustment, but rather as a reduction in the allowance. The new guidance also replaces the model for purchased credit impaired debt securities and financing receivables and requires the establishment of an allowance for credit losses at acquisition, which is added to the purchase price to establish the initial amortized cost. The new guidance also requires enhanced disclosures. January 1, 2020, to be applied on a modified retrospective basis, which requires transition adjustments to be recorded as a cumulative effect adjustment to retained earnings. The Company continues to evaluate the impact of the new guidance on its consolidated financial statements. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | 2. Segment Information The Company is organized into two segments: U.S. and MetLife Holdings. In addition, the Company reports certain of its results of operations in Corporate & Other. U.S. The U.S. segment offers a broad range of protection products and services aimed at serving the financial needs of customers throughout their lives. These products are sold to corporations and their respective employees, other institutions and their respective members, as well as individuals. The U.S. segment is organized into two businesses: Group Benefits and Retirement and Income Solutions (“RIS”). • The Group Benefits business offers life, dental, group short- and long-term disability, individual disability, accidental death and dismemberment, vision and accident & health coverages, as well as prepaid legal plans. This business also sells administrative services-only arrangements to some employers. • The RIS business offers a broad range of life and annuity-based insurance and investment products, including stable value and pension risk transfer products, institutional income annuities, tort settlements, and capital markets investment products, as well as solutions for funding postretirement benefits and company-, bank- or trust-owned life insurance. MetLife Holdings The MetLife Holdings segment consists of operations relating to products and businesses, previously included in MLIC’s former retail business, that the Company no longer actively markets, such as variable, universal, term and whole life insurance, variable, fixed and index-linked annuities and long-term care insurance. Corporate & Other Corporate & Other contains the excess capital, as well as certain charges and activities, not allocated to the segments, including enterprise-wide strategic initiative restructuring charges and various start-up businesses. Additionally, Corporate & Other includes run-off businesses, the Company’s ancillary international operations, and interest expense related to the majority of the Company’s outstanding debt, as well as expenses associated with certain legal proceedings and income tax audit issues. In addition, Corporate & Other includes the elimination of intersegment amounts, which generally relate to affiliated reinsurance and intersegment loans, which bear interest rates commensurate with related borrowings. Financial Measures and Segment Accounting Policies Adjusted earnings is used by management to evaluate performance and allocate resources. Consistent with GAAP guidance for segment reporting, adjusted earnings is also the Company’s GAAP measure of segment performance and is reported below. Adjusted earnings should not be viewed as a substitute for net income (loss). The Company believes the presentation of adjusted earnings, as the Company measures it for management purposes, enhances the understanding of its performance by highlighting the results of operations and the underlying profitability drivers of the business. Adjusted earnings is defined as adjusted revenues less adjusted expenses, net of income tax. The financial measures of adjusted revenues and adjusted expenses focus on the Company’s primary businesses principally by excluding the impact of market volatility, which could distort trends, and revenues and costs related to non-core products and certain entities required to be consolidated under GAAP. Also, these measures exclude results of discontinued operations under GAAP and other businesses that have been or will be sold or exited by MLIC but do not meet the discontinued operations criteria under GAAP and are referred to as divested businesses. Divested businesses also includes the net impact of transactions with exited businesses that have been eliminated in consolidation under GAAP and costs relating to businesses that have been or will be sold or exited by MLIC that do not meet the criteria to be included in results of discontinued operations under GAAP. Adjusted revenues also excludes net investment gains (losses) and net derivative gains (losses). The following additional adjustments are made to revenues, in the line items indicated, in calculating adjusted revenues: • Universal life and investment-type product policy fees excludes the amortization of unearned revenue related to net investment gains (losses) and net derivative gains (losses) and certain variable annuity guaranteed minimum income benefits (“GMIBs”) fees (“GMIB fees”); and • Net investment income: (i) includes adjustments for earned income on derivatives and amortization of premium on derivatives that are hedges of investments or that are used to replicate certain investments, but do not qualify for hedge accounting treatment, (ii) excludes post-tax adjusted earnings adjustments relating to insurance joint ventures accounted for under the equity method, (iii) excludes certain amounts related to securitization entities that are VIEs consolidated under GAAP and (iv) includes distributions of profits from certain other limited partnership interests that were previously accounted for under the cost method, but are now accounted for at estimated fair value, where the change in estimated fair value is recognized in net investment gains (losses) under GAAP. The following additional adjustments are made to expenses, in the line items indicated, in calculating adjusted expenses: • Policyholder benefits and claims and policyholder dividends excludes: (i) changes in the policyholder dividend obligation related to net investment gains (losses) and net derivative gains (losses), (ii) amounts associated with periodic crediting rate adjustments based on the total return of a contractually referenced pool of assets and other pass-through adjustments, (iii) benefits and hedging costs related to GMIBs (“GMIB costs”) and (iv) market value adjustments associated with surrenders or terminations of contracts (“Market value adjustments”); • Interest credited to policyholder account balances includes adjustments for earned income on derivatives and amortization of premium on derivatives that are hedges of policyholder account balances but do not qualify for hedge accounting treatment; • Amortization of DAC and value of business acquired (“VOBA”) excludes amounts related to: (i) net investment gains (losses) and net derivative gains (losses), (ii) GMIB fees and GMIB costs and (iii) Market value adjustments; • Interest expense on debt excludes certain amounts related to securitization entities that are VIEs consolidated under GAAP; and • Other expenses excludes costs related to: (i) noncontrolling interests, (ii) acquisition, integration and other costs, and (iii) goodwill impairments. The tax impact of the adjustments mentioned above are calculated net of the U.S. or foreign statutory tax rate, which could differ from the Company’s effective tax rate. Additionally, the provision for income tax (expense) benefit also includes the impact related to the timing of certain tax credits, as well as certain tax reforms. Set forth in the tables below is certain financial information with respect to the Company’s segments, as well as Corporate & Other, for the three months and six months ended June 30, 2019 and 2018 . The segment accounting policies are the same as those used to prepare the Company’s consolidated financial statements, except for adjusted earnings adjustments as defined above. In addition, segment accounting policies include the method of capital allocation described below. Economic capital is an internally developed risk capital model, the purpose of which is to measure the risk in the business and to provide a basis upon which capital is deployed. The economic capital model accounts for the unique and specific nature of the risks inherent in MetLife’s and the Company’s business. MetLife’s economic capital model, coupled with considerations of local capital requirements, aligns segment allocated equity with emerging standards and consistent risk principles. The model applies statistics-based risk evaluation principles to the material risks to which the Company is exposed. These consistent risk principles include calibrating required economic capital shock factors to a specific confidence level and time horizon while applying an industry standard method for the inclusion of diversification benefits among risk types. MetLife’s management is responsible for the ongoing production and enhancement of the economic capital model and reviews its approach periodically to ensure that it remains consistent with emerging industry practice standards. Segment net investment income is credited or charged based on the level of allocated equity; however, changes in allocated equity do not impact the Company’s consolidated net investment income, net income (loss), or adjusted earnings. Net investment income is based upon the actual results of each segment’s specifically identifiable investment portfolios adjusted for allocated equity. Other costs are allocated to each of the segments based upon: (i) a review of the nature of such costs; (ii) time studies analyzing the amount of employee compensation costs incurred by each segment; and (iii) cost estimates included in the Company’s product pricing. Three Months Ended June 30, 2019 U.S. MetLife Holdings Corporate & Other Total Adjustments Total Consolidated (In millions) Revenues Premiums $ 4,380 $ 774 $ — $ 5,154 $ — $ 5,154 Universal life and investment-type product policy fees 264 235 — 499 22 521 Net investment income 1,701 1,191 (26 ) 2,866 (72 ) 2,794 Other revenues 202 51 150 403 — 403 Net investment gains (losses) — — — — 66 66 Net derivative gains (losses) — — — — 208 208 Total revenues 6,547 2,251 124 8,922 224 9,146 Expenses Policyholder benefits and claims and policyholder dividends 4,522 1,456 — 5,978 47 6,025 Interest credited to policyholder account balances 488 180 — 668 (5 ) 663 Capitalization of DAC (19 ) 2 — (17 ) — (17 ) Amortization of DAC and VOBA 13 60 — 73 (32 ) 41 Interest expense on debt 2 2 22 26 — 26 Other expenses 724 206 255 1,185 — 1,185 Total expenses 5,730 1,906 277 7,913 10 7,923 Provision for income tax expense (benefit) 169 67 (126 ) 110 46 156 Adjusted earnings $ 648 $ 278 $ (27 ) 899 Adjustments to: Total revenues 224 Total expenses (10 ) Provision for income tax (expense) benefit (46 ) Net income (loss) $ 1,067 $ 1,067 Three Months Ended June 30, 2018 U.S. MetLife Holdings Corporate & Other Total Adjustments Total Consolidated (In millions) Revenues Premiums $ 10,123 $ 795 $ 2 $ 10,920 $ — $ 10,920 Universal life and investment-type product policy fees 257 248 — 505 24 529 Net investment income 1,645 1,177 (38 ) 2,784 (100 ) 2,684 Other revenues 196 67 138 401 — 401 Net investment gains (losses) — — — — (30 ) (30 ) Net derivative gains (losses) — — — — 305 305 Total revenues 12,221 2,287 102 14,610 199 14,809 Expenses Policyholder benefits and claims and policyholder dividends 10,332 1,457 2 11,791 29 11,820 Interest credited to policyholder account balances 425 187 — 612 — 612 Capitalization of DAC (10 ) 1 — (9 ) — (9 ) Amortization of DAC and VOBA 15 74 — 89 (10 ) 79 Interest expense on debt 3 2 23 28 — 28 Other expenses 705 245 234 1,184 (5 ) 1,179 Total expenses 11,470 1,966 259 13,695 14 13,709 Provision for income tax expense (benefit) 159 61 (164 ) 56 37 93 Adjusted earnings $ 592 $ 260 $ 7 859 Adjustments to: Total revenues 199 Total expenses (14 ) Provision for income tax (expense) benefit (37 ) Net income (loss) $ 1,007 $ 1,007 Six Months Ended June 30, 2019 U.S. MetLife Corporate Total Adjustments Total (In millions) Revenues Premiums $ 8,682 $ 1,524 $ — $ 10,206 $ — $ 10,206 Universal life and investment-type product policy fees 528 452 — 980 44 1,024 Net investment income 3,339 2,330 (83 ) 5,586 (147 ) 5,439 Other revenues 406 114 284 804 — 804 Net investment gains (losses) — — — — 12 12 Net derivative gains (losses) — — — — (102 ) (102 ) Total revenues 12,955 4,420 201 17,576 (193 ) 17,383 Expenses Policyholder benefits and claims and policyholder dividends 8,960 2,854 — 11,814 130 11,944 Interest credited to policyholder account balances 975 358 — 1,333 (8 ) 1,325 Capitalization of DAC (34 ) 5 — (29 ) — (29 ) Amortization of DAC and VOBA 27 107 — 134 (74 ) 60 Interest expense on debt 5 4 44 53 — 53 Other expenses 1,447 406 446 2,299 — 2,299 Total expenses 11,380 3,734 490 15,604 48 15,652 Provision for income tax expense (benefit) 326 134 (254 ) 206 (50 ) 156 Adjusted earnings $ 1,249 $ 552 $ (35 ) 1,766 Adjustments to: Total revenues (193 ) Total expenses (48 ) Provision for income tax (expense) benefit 50 Net income (loss) $ 1,575 $ 1,575 Six Months Ended June 30, 2018 U.S. MetLife Corporate Total Adjustments Total (In millions) Revenues Premiums $ 14,300 $ 1,568 $ 1 $ 15,869 $ — $ 15,869 Universal life and investment-type product policy fees 510 503 — 1,013 47 1,060 Net investment income 3,238 2,381 (42 ) 5,577 (192 ) 5,385 Other revenues 392 133 277 802 — 802 Net investment gains (losses) — — — — (226 ) (226 ) Net derivative gains (losses) — — — — 365 365 Total revenues 18,440 4,585 236 23,261 (6 ) 23,255 Expenses Policyholder benefits and claims and policyholder dividends 14,743 2,831 (9 ) 17,565 31 17,596 Interest credited to policyholder account balances 819 375 — 1,194 (1 ) 1,193 Capitalization of DAC (22 ) 3 — (19 ) — (19 ) Amortization of DAC and VOBA 32 151 — 183 (16 ) 167 Interest expense on debt 6 4 44 54 — 54 Other expenses 1,424 500 512 2,436 (7 ) 2,429 Total expenses 17,002 3,864 547 21,413 7 21,420 Provision for income tax expense (benefit) 306 138 (283 ) 161 (5 ) 156 Adjusted earnings $ 1,132 $ 583 $ (28 ) 1,687 Adjustments to: Total revenues (6 ) Total expenses (7 ) Provision for income tax (expense) benefit 5 Net income (loss) $ 1,679 $ 1,679 The following table presents total assets with respect to the Company’s segments, as well as Corporate & Other, at: June 30, 2019 December 31, 2018 (In millions) U.S. $ 247,783 $ 233,998 MetLife Holdings 154,635 147,498 Corporate & Other 25,685 25,421 Total $ 428,103 $ 406,917 Revenues derived from one U.S. segment customer were $800 million and $1.6 billion for the three months and six months ended June 30, 2019 , respectively, which represented 13% and 13% , respectively, of consolidated premiums, universal life and investment-type product policy fees and other revenues. Revenues derived from one U.S. segment customer were $6.0 billion for both the three months and six months ended June 30, 2018 , which represented 50% and 34% , respectively, of consolidated premiums, universal life and investment-type product policy fees and other revenues. The revenue was from a single premium received for a pension risk transfer. Revenues derived from any other customer did not exceed 10% of consolidated premiums, universal life and investment-type product policy fees and other revenues for the three months and six months ended June 30, 2019 and 2018 . |
Insurance
Insurance | 6 Months Ended |
Jun. 30, 2019 | |
Insurance [Abstract] | |
Insurance | 3. Insurance Guarantees As discussed in Notes 1 and 4 of the Notes to the Consolidated Financial Statements included in the 2018 Annual Report, the Company issues directly and assumes through reinsurance variable annuity products with guaranteed minimum benefits. Guaranteed minimum accumulation benefits (“GMABs”), the non-life-contingent portion of guaranteed minimum withdrawal benefits (“GMWBs”) and certain non-life contingent portions of GMIBs are accounted for as embedded derivatives in policyholder account balances and are further discussed in Note 6 . The Company also issues other annuity contracts that apply a lower rate on funds deposited if the contractholder elects to surrender the contract for cash and a higher rate if the contractholder elects to annuitize. These guarantees include benefits that are payable in the event of death, maturity or at annuitization. Certain other annuity contracts contain guaranteed annuitization benefits that may be above what would be provided by the current account value of the contract. Additionally, the Company issues universal and variable life contracts where the Company contractually guarantees to the contractholder a secondary guarantee or a guaranteed paid-up benefit. Information regarding the Company’s guarantee exposure, which includes direct business, but excludes offsets from hedging or reinsurance, if any, was as follows at: June 30, 2019 December 31, 2018 In the At In the At (Dollars in millions) Annuity Contracts: Variable Annuity Guarantees: Total account value (1), (2) $ 49,796 $ 21,826 $ 47,393 $ 20,692 Separate account value (1) $ 39,994 $ 20,993 $ 37,342 $ 19,839 Net amount at risk $ 1,282 (3 ) $ 375 (4 ) $ 2,433 (3 ) $ 418 (4 ) Average attained age of contractholders 68 years 66 years 67 years 65 years Other Annuity Guarantees: Total account value (1), (2) N/A $ 144 N/A $ 144 Net amount at risk N/A $ 83 (5 ) N/A $ 85 (5 ) Average attained age of contractholders N/A 54 years N/A 53 years June 30, 2019 December 31, 2018 Secondary Paid-Up Secondary Paid-Up (Dollars in millions) Universal and Variable Life Contracts: Total account value (1), (2) $ 4,575 $ 916 $ 4,614 $ 937 Net amount at risk (6) $ 43,042 $ 6,085 $ 44,596 $ 6,290 Average attained age of policyholders 56 years 64 years 55 years 63 years __________________ (1) The Company’s annuity and life contracts with guarantees may offer more than one type of guarantee in each contract. Therefore, the amounts listed above may not be mutually exclusive. (2) Includes the contractholder’s investments in the general account and separate account, if applicable. (3) Defined as the death benefit less the total account value, as of the balance sheet date. It represents the amount of the claim that the Company would incur if death claims were filed on all contracts on the balance sheet date and includes any additional contractual claims associated with riders purchased to assist with covering income taxes payable upon death. (4) Defined as the amount (if any) that would be required to be added to the total account value to purchase a lifetime income stream, based on current annuity rates, equal to the minimum amount provided under the guaranteed benefit. This amount represents the Company’s potential economic exposure to such guarantees in the event all contractholders were to annuitize on the balance sheet date, even though the contracts contain terms that allow annuitization of the guaranteed amount only after the 10th anniversary of the contract, which not all contractholders have achieved. (5) Defined as either the excess of the upper tier, adjusted for a profit margin, less the lower tier, as of the balance sheet date or the amount (if any) that would be required to be added to the total account value to purchase a lifetime income stream, based on current annuity rates, equal to the minimum amount provided under the guaranteed benefit. These amounts represent the Company’s potential economic exposure to such guarantees in the event all contractholders were to annuitize on the balance sheet date. (6) Defined as the guarantee amount less the account value, as of the balance sheet date. It represents the amount of the claim that the Company would incur if death claims were filed on all contracts on the balance sheet date. Liabilities for Unpaid Claims and Claim Expenses Rollforward of Claims and Claim Adjustment Expenses Information regarding the liabilities for unpaid claims and claim adjustment expenses was as follows: Six Months 2019 2018 (In millions) Balance, beginning of period $ 12,590 $ 12,090 Less: Reinsurance recoverables 1,497 1,401 Net balance, beginning of period 11,093 10,689 Incurred related to: Current period 8,830 8,425 Prior periods (1) (53 ) 73 Total incurred 8,777 8,498 Paid related to: Current period (5,424 ) (5,172 ) Prior periods (3,060 ) (3,164 ) Total paid (8,484 ) (8,336 ) Net balance, end of period 11,386 10,851 Add: Reinsurance recoverables 1,587 1,446 Balance, end of period (included in future policy benefits and other policy-related balances) $ 12,973 $ 12,297 __________________ (1) For the six months ended June 30, 2019 , claims and claim adjustment expenses associated with prior periods decreased due to favorable claims experience in the current period. For the six months ended June 30, 2018 , claims and claim adjustment expenses associated with prior periods increased due to events incurred in prior periods but reported in the current period. |
Closed Block
Closed Block | 6 Months Ended |
Jun. 30, 2019 | |
Closed Block Disclosure [Abstract] | |
Closed Block | 4. Closed Block On April 7, 2000 (the “Demutualization Date”), Metropolitan Life Insurance Company converted from a mutual life insurance company to a stock life insurance company and became a wholly-owned subsidiary of MetLife, Inc. The conversion was pursuant to an order by the New York Superintendent of Insurance approving Metropolitan Life Insurance Company’s plan of reorganization, as amended (the “Plan of Reorganization”). On the Demutualization Date, Metropolitan Life Insurance Company established a closed block for the benefit of holders of certain individual life insurance policies of Metropolitan Life Insurance Company. Experience within the closed block, in particular mortality and investment yields, as well as realized and unrealized gains and losses, directly impact the policyholder dividend obligation. Amortization of the closed block DAC, which resides outside of the closed block, is based upon cumulative actual and expected earnings within the closed block. Accordingly, the Company’s net income continues to be sensitive to the actual performance of the closed block. Closed block assets, liabilities, revenues and expenses are combined on a line-by-line basis with the assets, liabilities, revenues and expenses outside the closed block based on the nature of the particular item. Information regarding the closed block liabilities and assets designated to the closed block was as follow s at: June 30, 2019 December 31, 2018 (In millions) Closed Block Liabilities Future policy benefits $ 39,608 $ 40,032 Other policy-related balances 395 317 Policyholder dividends payable 457 431 Policyholder dividend obligation 1,834 428 Deferred income tax liability 51 28 Other liabilities 137 328 Total closed block liabilities 42,482 41,564 Assets Designated to the Closed Block Investments: Fixed maturity securities available-for-sale, at estimated fair value 26,132 25,354 Equity securities, at estimated fair value 64 61 Contractholder-directed equity securities and fair value option securities, at estimated fair value 49 43 Mortgage loans 6,900 6,778 Policy loans 4,498 4,527 Real estate and real estate joint ventures 550 544 Other invested assets 657 643 Total investments 38,850 37,950 Cash and cash equivalents 75 — Accrued investment income 434 443 Premiums, reinsurance and other receivables 85 83 Current income tax recoverable 78 69 Total assets designated to the closed block 39,522 38,545 Excess of closed block liabilities over assets designated to the closed block 2,960 3,019 Amounts included in AOCI: Unrealized investment gains (losses), net of income tax 2,226 1,089 Unrealized gains (losses) on derivatives, net of income tax 103 86 Allocated to policyholder dividend obligation, net of income tax (1,449 ) (338 ) Total amounts included in AOCI 880 837 Maximum future earnings to be recognized from closed block assets and liabilities $ 3,840 $ 3,856 Information regarding the closed block policyholder dividend obligation was as follows: Six Months Year (In millions) Balance, beginning of period $ 428 $ 2,121 Change in unrealized investment and derivative gains (losses) 1,406 (1,693 ) Balance, end of period $ 1,834 $ 428 Information regarding the closed block revenues and expenses was as follows: Three Months Six Months 2019 2018 2019 2018 (In millions) Revenues Premiums $ 390 $ 410 $ 757 $ 797 Net investment income 447 431 875 875 Net investment gains (losses) (4 ) (24 ) (5 ) (53 ) Net derivative gains (losses) 9 13 12 10 Total revenues 842 830 1,639 1,629 Expenses Policyholder benefits and claims 563 596 1,102 1,167 Policyholder dividends 231 238 459 482 Other expenses 28 30 57 59 Total expenses 822 864 1,618 1,708 Revenues, net of expenses before provision for income tax expense (benefit) 20 (34 ) 21 (79 ) Provision for income tax expense (benefit) 4 (7 ) 4 (17 ) Revenues, net of expenses and provision for income tax expense (benefit) $ 16 $ (27 ) $ 17 $ (62 ) Metropolitan Life Insurance Company charges the closed block with federal income taxes, state and local premium taxes and other state or local taxes, as well as investment management expenses relating to the closed block as provided in the Plan of Reorganization. Metropolitan Life Insurance Company also charges the closed block for expenses of maintaining the policies included in the closed block. |
Investments
Investments | 6 Months Ended |
Jun. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | 5 . Investments Fixed Maturity Securities Available-for-Sale Fixed Maturity Securities Available-for-Sale by Sector The following table presents the fixed maturity securities AFS by sector. U.S. corporate and foreign corporate sectors include redeemable preferred stock. Residential mortgage-backed securities (“RMBS”) includes Agency, prime, alternative and sub-prime mortgage-backed securities. Asset-backed securities (“ABS”) includes securities collateralized by corporate loans and consumer loans. Municipals includes taxable and tax-exempt revenue bonds and, to a much lesser extent, general obligations of states, municipalities and political subdivisions. Commercial mortgage-backed securities (“CMBS”) primarily includes securities collateralized by multiple properties. RMBS, ABS and CMBS are collectively, “Structured Securities.” June 30, 2019 December 31, 2018 Amortized Gross Unrealized Estimated Amortized Gross Unrealized Estimated Temporary OTTI Temporary OTTI (In millions) U.S. corporate $ 52,042 $ 5,084 $ 300 $ — $ 56,826 $ 53,927 $ 2,440 $ 1,565 $ — $ 54,802 U.S. government and agency 25,195 3,483 22 — 28,656 28,139 2,388 366 — 30,161 Foreign corporate 27,852 1,787 694 — 28,945 26,592 674 1,303 — 25,963 RMBS 22,187 1,261 76 (36 ) 23,408 22,186 831 305 (25 ) 22,737 ABS 9,449 52 49 — 9,452 8,599 40 112 — 8,527 Municipals 5,983 1,390 — — 7,373 6,070 907 30 — 6,947 CMBS 5,396 222 16 — 5,602 5,471 48 75 — 5,444 Foreign government 4,242 641 43 — 4,840 4,191 408 107 — 4,492 Total fixed maturity securities AFS $ 152,346 $ 13,920 $ 1,200 $ (36 ) $ 165,102 $ 155,175 $ 7,736 $ 3,863 $ (25 ) $ 159,073 __________________ (1) Noncredit OTTI losses included in AOCI in an unrealized gain position are due to increases in estimated fair value subsequent to initial recognition of noncredit losses on such securities. See also “— Net Unrealized Investment Gains (Losses).” The Company held non-income producing fixed maturity securities AFS with an estimated fair value of $25 million and $14 million , and unrealized gains (losses) of $1 million and ($1) million at June 30, 2019 and December 31, 2018 , respectively. Maturities of Fixed Maturity Securities AFS The amortized cost and estimated fair value of fixed maturity securities AFS, by contractual maturity date, were as follows at June 30, 2019 : Due in One Year or Less Due After One Year Through Five Years Due After Five Years Through Ten Years Due After Ten Years Structured Securities Total Fixed Maturity Securities AFS (In millions) Amortized cost $ 9,778 $ 25,123 $ 25,828 $ 54,585 $ 37,032 $ 152,346 Estimated fair value $ 9,734 $ 25,726 $ 27,617 $ 63,563 $ 38,462 $ 165,102 Actual maturities may differ from contractual maturities due to the exercise of call or prepayment options. Fixed maturity securities AFS not due at a single maturity date have been presented in the year of final contractual maturity. Structured Securities are shown separately, as they are not due at a single maturity. Continuous Gross Unrealized Losses for Fixed Maturity Securities AFS by Sector The following table presents the estimated fair value and gross unrealized losses of fixed maturity securities AFS in an unrealized loss position by sector and aggregated by length of time that the securities have been in a continuous unrealized loss position at: June 30, 2019 December 31, 2018 Less than 12 Months Equal to or Greater Less than 12 Months Equal to or Greater Estimated Gross Estimated Gross Estimated Gross Estimated Gross (Dollars in millions) U.S. corporate $ 3,379 $ 91 $ 3,005 $ 209 $ 23,398 $ 1,176 $ 3,043 $ 389 U.S. government and agency 1,483 1 2,270 21 4,322 29 7,948 337 Foreign corporate 1,976 119 4,955 575 12,911 893 2,138 410 RMBS 1,154 13 2,420 27 5,611 107 4,482 173 ABS 3,718 28 1,636 21 5,958 105 223 7 Municipals 21 — 16 — 675 22 94 8 CMBS 381 1 265 15 2,455 45 344 30 Foreign government 56 3 280 40 1,364 83 191 24 Total fixed maturity securities AFS $ 12,168 $ 256 $ 14,847 $ 908 $ 56,694 $ 2,460 $ 18,463 $ 1,378 Total number of securities in an unrealized loss position 1,208 1,042 5,263 1,125 Evaluation of Fixed Maturity Securities AFS for OTTI and Evaluating Temporarily Impaired Fixed Maturity Securities AFS As described more fully in Notes 1 and 8 of the Notes to the Consolidated Financial Statements included in the 2018 Annual Report, the Company performs a regular evaluation of all investment classes for impairment, including fixed maturity securities AFS and perpetual hybrid securities, in accordance with its impairment policy, in order to evaluate whether such investments are other-than-temporarily impaired. Current Period Evaluation Based on the Company’s current evaluation of its securities in an unrealized loss position in accordance with its impairment policy, and the Company’s current intentions and assessments (as applicable to the type of security) about holding, selling and any requirements to sell these securities, the Company concluded that these securities were not other-than-temporarily impaired at June 30, 2019 . Future OTTI will depend primarily on economic fundamentals, issuer performance (including changes in the present value of future cash flows expected to be collected), and changes in credit ratings, collateral valuation and foreign currency exchange rates. If economic fundamentals deteriorate or if there are adverse changes in the above factors, OTTI may be incurred in upcoming periods. Gross unrealized losses on fixed maturity securities AFS decreased $2.7 billion for the six months ended June 30, 2019 to $1.2 billion . The decrease in gross unrealized losses for the six months ended June 30, 2019 was primarily attributable to decreases in interest rates and narrowing credit spreads. At June 30, 2019 , $127 million of the total $1.2 billion of gross unrealized losses were from 20 fixed maturity securities AFS with an unrealized loss position of 20% or more of amortized cost for six months or greater. Investment Grade Fixed Maturity Securities AFS Of the $127 million of gross unrealized losses on fixed maturity securities AFS with an unrealized loss of 20% or more of amortized cost for six months or greater, $85 million , or 67% , were related to gross unrealized losses on 11 investment grade fixed maturity securities AFS. Unrealized losses on investment grade fixed maturity securities AFS are principally related to widening credit spreads since purchase and, with respect to fixed-rate fixed maturity securities AFS, rising interest rates since purchase. Below Investment Grade Fixed Maturity Securities AFS Of the $127 million of gross unrealized losses on fixed maturity securities AFS with an unrealized loss of 20% or more of amortized cost for six months or greater, $42 million , or 33% , were related to gross unrealized losses on nine below investment grade fixed maturity securities AFS. Unrealized losses on below investment grade fixed maturity securities AFS are principally related to U.S. and foreign corporate securities (primarily industrial) and CMBS and are the result of significantly wider credit spreads resulting from higher risk premiums since purchase, largely due to economic and market uncertainty. Management evaluates U.S. corporate and foreign corporate securities based on factors such as expected cash flows, financial condition and near-term and long-term prospects of the issuers. Management evaluates CMBS based on actual and projected cash flows after considering the quality of underlying collateral, expected prepayment speeds, current and forecasted loss severity, the payment terms of the underlying assets backing a particular security and the payment priority within the tranche structure of the security. Equity Securities Equity securities are summarized as follows at: June 30, 2019 December 31, 2018 Estimated Fair Value % of Total Estimated Fair Value % of Total (Dollars in millions) Common stock $ 472 58.6 % $ 442 57.2 % Non-redeemable preferred stock 333 41.4 331 42.8 Total equity securities $ 805 100.0 % $ 773 100.0 % Mortgage Loans Mortgage Loans by Portfolio Segment Mortgage loans are summarized as follows at: June 30, 2019 December 31, 2018 Carrying Value % of Total Carrying Value % of Total (Dollars in millions) Mortgage loans: Commercial $ 38,270 59.2 % $ 38,123 59.9 % Agricultural 14,523 22.5 14,164 22.2 Residential 11,916 18.4 11,392 17.9 Total recorded investment 64,709 100.1 63,679 100.0 Valuation allowances (300 ) (0.5 ) (291 ) (0.5 ) Subtotal mortgage loans, net 64,409 99.6 63,388 99.5 Residential — FVO (1) 262 0.4 299 0.5 Total mortgage loans, net $ 64,671 100.0 % $ 63,687 100.0 % __________________ (1) Information on residential mortgage loans — fair value option (“FVO”) is presented in Note 7 . The Company elects the FVO for certain residential mortgage loans that are managed on a total return basis. The amount of net discounts, included within total recorded investment, primarily residential, was $904 million and $907 million at June 30, 2019 and December 31, 2018 , respectively. Purchases of mortgage loans, primarily residential, were $472 million and $1.8 billion for the three months and six months ended June 30, 2019 , respectively, and $666 million and $954 million for the three months and six months ended June 30, 2018 , respectively . Mortgage Loans, Valuation Allowance and Impaired Loans by Portfolio Segment Mortgage loans by portfolio segment, by method of evaluation of credit loss, impaired mortgage loans including those modified in a troubled debt restructuring, and the related valuation allowances, were as follows at: Evaluated Individually for Credit Losses Evaluated Collectively for Credit Losses Impaired Loans Impaired Loans with a Valuation Allowance Impaired Loans without a Valuation Allowance Unpaid Principal Balance Recorded Investment Valuation Unpaid Principal Balance Recorded Recorded Valuation Carrying (In millions) June 30, 2019 Commercial $ — $ — $ — $ — $ — $ 38,270 $ 193 $ — Agricultural 31 31 3 191 190 14,302 43 218 Residential — — — 504 403 11,513 61 403 Total $ 31 $ 31 $ 3 $ 695 $ 593 $ 64,085 $ 297 $ 621 December 31, 2018 Commercial $ — $ — $ — $ — $ — $ 38,123 $ 190 $ — Agricultural 31 31 3 169 169 13,964 41 197 Residential — — — 431 386 11,006 57 386 Total $ 31 $ 31 $ 3 $ 600 $ 555 $ 63,093 $ 288 $ 583 The average recorded investment for impaired commercial, agricultural and residential mortgage loans was $0 , $172 million and $401 million , respectively, for the three months ended June 30, 2019 and $0 , $181 million and $396 million , respectively, for the six months ended June 30, 2019 . The average recorded investment for impaired commercial, agricultural and residential mortgage loans was $0 , $122 million and $351 million , respectively, for the three months ended June 30, 2018 , and $0 , $97 million and $342 million , respectively, for the six months ended June 30, 2018 . Valuation Allowance Rollforward by Portfolio Segment The changes in the valuation allowance, by portfolio segment, were as follows: Six Months 2019 2018 Commercial Agricultural Residential Total Commercial Agricultural Residential Total (In millions) Balance, beginning of period $ 190 $ 44 $ 57 $ 291 $ 173 $ 40 $ 58 $ 271 Provision (release) 3 2 8 13 10 — 2 12 Charge-offs, net of recoveries — — (4 ) (4 ) — — (4 ) (4 ) Balance, end of period $ 193 $ 46 $ 61 $ 300 $ 183 $ 40 $ 56 $ 279 Credit Quality of Commercial Mortgage Loans The credit quality of commercial mortgage loans was as follows at: Recorded Investment Estimated % of Debt Service Coverage Ratios % of > 1.20x 1.00x - 1.20x < 1.00x Total (Dollars in millions) June 30, 2019 Loan-to-value ratios: Less than 65% $ 31,529 $ 612 $ 152 $ 32,293 84.4 % $ 33,456 84.6 % 65% to 75% 4,548 26 152 4,726 12.3 4,849 12.3 76% to 80% 309 210 55 574 1.5 566 1.4 Greater than 80% 482 195 — 677 1.8 653 1.7 Total $ 36,868 $ 1,043 $ 359 $ 38,270 100.0 % $ 39,524 100.0 % December 31, 2018 Loan-to-value ratios: Less than 65% $ 31,282 $ 723 $ 85 $ 32,090 84.2 % $ 32,440 84.3 % 65% to 75% 4,759 — 21 4,780 12.5 4,829 12.6 76% to 80% 340 210 56 606 1.6 585 1.5 Greater than 80% 480 167 — 647 1.7 613 1.6 Total $ 36,861 $ 1,100 $ 162 $ 38,123 100.0 % $ 38,467 100.0 % Credit Quality of Agricultural Mortgage Loans The credit quality of agricultural mortgage loans was as follows at: June 30, 2019 December 31, 2018 Recorded Investment % of Total Recorded Investment % of Total (Dollars in millions) Loan-to-value ratios: Less than 65% $ 13,555 93.3 % $ 13,075 92.3 % 65% to 75% 876 6.0 1,034 7.3 76% to 80% 69 0.5 32 0.2 Greater than 80% 23 0.2 23 0.2 Total $ 14,523 100.0 % $ 14,164 100.0 % Credit Quality of Residential Mortgage Loans The credit quality of residential mortgage loans was as follows at: June 30, 2019 December 31, 2018 Recorded Investment % of Total Recorded Investment % of Total (Dollars in millions) Performance indicators: Performing $ 11,555 97.0 % $ 10,990 96.5 % Nonperforming (1) 361 3.0 402 3.5 Total $ 11,916 100.0 % $ 11,392 100.0 % __________________ (1) Includes residential mortgage loans in process of foreclosure of $123 million and $140 million at June 30, 2019 and December 31, 2018 , respectively. Past Due and Nonaccrual Mortgage Loans The Company has a high quality, well performing mortgage loan portfolio, with 99% of all mortgage loans classified as performing at both June 30, 2019 and December 31, 2018 . The Company defines delinquency consistent with industry practice, when mortgage loans are past due as follows: commercial and residential mortgage loans — 60 days and agricultural mortgage loans — 90 days. The past due and nonaccrual mortgage loans at recorded investment, prior to valuation allowances, by portfolio segment, were as follows at: Past Due Greater than 90 Days Past Due and Still Accruing Interest Nonaccrual June 30, 2019 December 31, 2018 June 30, 2019 December 31, 2018 June 30, 2019 December 31, 2018 (In millions) Commercial $ — $ — $ — $ — $ 167 $ 167 Agricultural 134 204 52 109 105 105 Residential 361 402 — — 361 402 Total $ 495 $ 606 $ 52 $ 109 $ 633 $ 674 Real Estate and Real Estate Joint Ventures The Company’s real estate investment portfolio is diversified by property type, geography and income stream, including income from operating leases, operating income and equity method income from real estate joint ventures. Real estate investments, by income type, as well as income earned, are as follows at and for the periods indicated: June 30, 2019 December 31, 2018 Three Months Six Months 2019 2018 2019 2018 Carrying Value Income (In millions) Leased real estate investments $ 1,246 $ 1,134 $ 40 $ 57 $ 81 $ 113 Other real estate investments 477 460 50 53 80 84 Real estate joint ventures 4,691 4,558 23 32 18 56 Total real estate and real estate joint ventures $ 6,414 $ 6,152 $ 113 $ 142 $ 179 $ 253 The carrying value of real estate investments acquired through foreclosure was $41 million and $42 million at June 30, 2019 and December 31, 2018 , respectively. Depreciation expense on real estate investments was $17 million and $32 million for the three months and six months ended June 30, 2019 , respectively, and $15 million and $34 million for the three months and six months ended June 30, 2018 , respectively. Real estate investments were net of accumulated depreciation of $700 million and $671 million at June 30, 2019 and December 31, 2018 , respectively. Leases Leased Real Estate Investments - Operating Leases The Company, as lessor, leases investment real estate, principally commercial real estate for office and retail use, through a variety of operating lease arrangements, which typically include tenant reimbursement for property operating costs and options to renew or extend the lease. In some circumstances, leases may include an option for the lessee to purchase the property. In addition, certain leases of retail space may stipulate that a portion of the income earned is contingent upon the level of the tenants’ revenues. The Company has elected a practical expedient of not separating non-lease components related to reimbursement of property operating costs from associated lease components. These property operating costs have the same timing and pattern of transfer as the related lease component, because they are incurred over the same period of time as the operating lease. Therefore, the combined component is accounted for as an operating lease. Risk is managed through lessee credit analysis, property type diversification, and geographic diversification, primarily across the United States. Leased real estate investments and income earned, by property type, are as follows at and for the periods indicated: June 30, 2019 December 31, 2018 Three Months Six Months 2019 2018 2019 2018 Carrying Value Income (In millions) Leased real estate investments: Office $ 373 $ 373 $ 12 $ 18 $ 26 $ 34 Retail 532 450 18 15 35 33 Apartment (1) — — — 16 — 29 Industrial 262 209 10 8 20 17 Other 79 102 — — — — Total leased real estate investments $ 1,246 $ 1,134 $ 40 $ 57 $ 81 $ 113 __________________ (1) The Company sold its investment in apartment properties in the fourth quarter of 2018. Future contractual receipts under operating leases at June 30, 2019 are $64 million for the remainder of 2019, $120 million in 2020, $97 million in 2021, $77 million in 2022, $60 million in 2023, $149 million thereafter, and in total are $567 million . Leveraged and Direct Financing Leases The Company has diversified leveraged lease and direct financing lease portfolios. Its leveraged leases principally include renewable energy generation facilities, rail cars, commercial real estate and commercial aircraft, and its direct financing leases principally include renewable energy generation facilities. These assets are leased through a variety of lease arrangements, which may include options to renew or extend the lease and options for the lessee to purchase the property. Residual values are estimated using available third-party data at inception of the lease. Risk is managed through lessee credit analysis, asset allocation, geographic diversification, and ongoing reviews of estimated residual values, using available third-party data. Generally, estimated residual values are not guaranteed by the lessee or a third party. Investment in leveraged and direct financing leases consisted of the following at: June 30, 2019 December 31, 2018 Leveraged Direct Leveraged Direct (In millions) Lease receivables, net (1) $ 707 $ 244 $ 715 $ 256 Estimated residual values 618 42 618 42 Subtotal 1,325 286 1,333 298 Unearned income (383 ) (91 ) (401 ) (100 ) Investment in leases $ 942 $ 195 $ 932 $ 198 __________________ (1) Future contractual receipts under direct financing leases at June 30, 2019 are $11 million for the remainder of 2019, $21 million in 2020, $21 million in 2021, $21 million in 2022, $21 million in 2023, $149 million thereafter, and in total are $244 million . Lease receivables are generally due in periodic installments, with payment periods generally ranging from one to 15 years, but in certain circumstances can be over 25 years . For lease receivables, the primary credit quality indicator is whether the lease receivable is performing or nonperforming, which is assessed monthly. The Company generally defines nonperforming lease receivables as those that are 90 days or more past due. At both June 30, 2019 and December 31, 2018 , all lease receivables were performing. The Company’s deferred income tax liability related to leveraged leases was $459 million and $465 million at June 30, 2019 and December 31, 2018 , respectively. Cash Equivalents The carrying value of cash equivalents, which includes securities and other investments with an original or remaining maturity of three months or less at the time of purchase, was $7.5 billion and $5.0 billion at June 30, 2019 and December 31, 2018 , respectively. Net Unrealized Investment Gains (Losses) Unrealized investment gains (losses) on fixed maturity securities AFS and derivatives and the effect on DAC, VOBA, deferred sales inducements (“DSI”), future policy benefits and the policyholder dividend obligation, that would result from the realization of the unrealized gains (losses), are included in net unrealized investment gains (losses) in AOCI. The components of net unrealized investment gains (losses), included in AOCI, were as follows: June 30, 2019 December 31, 2018 (In millions) Fixed maturity securities AFS $ 12,733 $ 3,890 Fixed maturity securities AFS with noncredit OTTI losses included in AOCI 36 25 Total fixed maturity securities AFS 12,769 3,915 Derivatives 2,292 1,742 Other 162 231 Subtotal 15,223 5,888 Amounts allocated from: Future policy benefits (641 ) (5 ) DAC, VOBA and DSI (979 ) (571 ) Policyholder dividend obligation (1,834 ) (428 ) Subtotal (3,454 ) (1,004 ) Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI (7 ) (5 ) Deferred income tax benefit (expense) (2,436 ) (982 ) Net unrealized investment gains (losses) $ 9,326 $ 3,897 The changes in net unrealized investment gains (losses) were as follows: Six Months (In millions) Balance, beginning of period $ 3,897 Cumulative effects of changes in accounting principles, net of income tax (Note 1) 17 Fixed maturity securities AFS on which noncredit OTTI losses have been recognized 11 Unrealized investment gains (losses) during the period 9,302 Unrealized investment gains (losses) relating to: Future policy benefits (636 ) DAC, VOBA and DSI (408 ) Policyholder dividend obligation (1,406 ) Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI (2 ) Deferred income tax benefit (expense) (1,449 ) Balance, end of period $ 9,326 Change in net unrealized investment gains (losses) $ 5,429 Concentrations of Credit Risk There were no investments in any counterparty that were greater than 10% of the Company’s equity, other than the U.S. government and its agencies, at both June 30, 2019 and December 31, 2018 . Securities Lending and Repurchase Agreements Securities, Collateral and Reinvestment Portfolio A summary of the securities lending and repurchase agreements transactions is as follows: June 30, 2019 December 31, 2018 Securities on Loan (1) Securities on Loan (1) Amortized Cost Estimated Fair Value Cash Collateral Received from Counterparties (2), (3) Reinvestment Portfolio at Estimated Fair Value Amortized Cost Estimated Fair Value Cash Collateral Received from Counterparties (2), (3) Reinvestment Portfolio at Estimated Fair Value (In millions) Securities lending $ 11,061 $ 12,500 $ 12,778 $ 12,936 $ 12,521 $ 13,138 $ 13,351 $ 13,376 Repurchase agreements $ 1,458 $ 1,565 $ 1,535 $ 1,553 $ 974 $ 1,020 $ 1,000 $ 1,001 __________________ (1) Securities on loan in connection with securities lending are included within fixed maturities securities AFS and cash equivalents and securities on loan in connection with repurchase agreements are included within fixed maturities securities AFS, short-term investments and cash equivalents. (2) In connection with securities lending, in addition to cash collateral received, the Company received from counterparties security collateral of $8 million and $64 million at June 30, 2019 and December 31, 2018 , respectively , which may not be sold or re-pledged, unless the counterparty is in default, and is not reflected on the consolidated financial statements. (3) The securities lending liability for cash collateral is included within payables for collateral under securities loaned and other transactions, and the repurchase agreements liability for cash collateral is included within payables for collateral under securities loaned and other transactions and other liabilities. Contractual Maturities A summary of the remaining contractual maturities of securities lending agreements and repurchase agreements is as follows: June 30, 2019 December 31, 2018 Remaining Maturities Remaining Maturities Open (1) 1 Month or Less Over 1 to 6 Months Total Open (1) 1 Month or Less Over 1 to 6 Months Total (In millions) Cash collateral liability by loaned security type: Securities lending: U.S. government and agency $ 2,168 $ 3,137 $ 7,473 $ 12,778 $ 1,970 $ 7,426 $ 3,955 $ 13,351 Repurchase agreements: U.S. government and agency $ — $ 1,535 $ — $ 1,535 $ — $ 1,000 $ — $ 1,000 __________________ (1) The related loaned security could be returned to the Company on the next business day, which would require the Company to immediately return the cash collateral. The estimated fair value of the securities on loan related to this cash collateral at June 30, 2019 was $2.1 billion , all of which were U.S. government and agency securities which, if put back to the Company, could be immediately sold to satisfy the cash requirement. If the Company is required to return significant amounts of cash collateral on short notice and is forced to sell securities to meet the return obligation, it may have difficulty selling such collateral that is invested in securities in a timely manner, be forced to sell securities in a volatile or illiquid market for less than what otherwise would have been realized under normal market conditions, or both. The securities lending and repurchase agreements reinvestment portfolios acquired with the cash collateral consist principally of high quality, liquid, publicly-traded fixed maturity securities AFS, short-term investments, cash equivalents or held in cash. If the securities on loan or the reinvestment portfolio become less liquid, the Company has the liquidity resources of most of its general account available to meet any potential cash demands when securities on loan are put back to the Company. Invested Assets on Deposit and Pledged as Collateral Invested assets on deposit and pledged as collateral are presented below at estimated fair value for all asset classes, except mortgage loans, which are presented at carrying value at: June 30, 2019 December 31, 2018 (In millions) Invested assets on deposit (regulatory deposits) $ 47 $ 47 Invested assets pledged as collateral (1) 20,756 20,207 Total invested assets on deposit and pledged as collateral $ 20,803 $ 20,254 __________________ (1) The Company has pledged invested assets in connection with various agreements and transactions, including funding agreements (see Note 4 of the Notes to the Consolidated Financial Statements included in the 2018 Annual Report) and derivative transactions (see Note 6 ). See “— Securities Lending and Repurchase Agreements” for information regarding securities supporting securities lending and repurchase agreement transactions and Note 4 for information regarding investments designated to the closed block. In addition, the restricted investment in Federal Home Loan Bank common stock was $727 million and $724 million , at redemption value, at June 30, 2019 and December 31, 2018 , respectively. Variable Interest Entities The Company has invested in legal entities that are VIEs. In certain instances, the Company holds both the power to direct the most significant activities of the entity, as well as an economic interest in the entity and, as such, is deemed to be the primary beneficiary or consolidator of the entity. The determination of the VIE’s primary beneficiary requires an evaluation of the contractual and implied rights and obligations associated with each party’s relationship with or involvement in the entity, an estimate of the entity’s expected losses and expected residual returns and the allocation of such estimates to each party involved in the entity. Consolidated VIEs Creditors or beneficial interest holders of VIEs where the Company is the primary beneficiary have no recourse to the general credit of the Company, as the Company’s obligation to the VIEs is limited to the amount of its committed investment. The following table presents the total assets and total liabilities relating to investment-related VIEs for which the Company has concluded that it is the primary beneficiary and which are consolidated at: June 30, 2019 December 31, 2018 Total Assets Total Liabilities Total Assets Total Liabilities (In millions) Real estate joint ventures (1) $ 1,409 $ — $ 1,394 $ — Renewable energy partnership (2) 99 — 102 — Investment fund (primarily mortgage loans) (3) 228 — 219 — Other investments 20 5 21 5 Total $ 1,756 $ 5 $ 1,736 $ 5 __________________ (1) The Company’s investment in these affiliated real estate joint ventures was $1.3 billion at both June 30, 2019 and December 31, 2018 . Other affiliates’ investments in these affiliated real estate joint ventures were $130 million and $123 million at June 30, 2019 and December 31, 2018 , respectively. (2) Assets of the renewable energy partnership primarily consisted of other invested assets. (3) The Company’s investment in this affiliated investment fund was $186 million and $178 million at June 30, 2019 and December 31, 2018 , respectively. An affiliate had an investment in this affiliated investment fund of $42 million and $41 million at June 30, 2019 and December 31, 2018 , respectively. Unconsolidated VIEs The carrying amount and maximum exposure to loss relating to VIEs in which the Company holds a significant variable interest but is not the primary beneficiary and which have not been consolidated were as follows at: June 30, 2019 December 31, 2018 Carrying Amount Maximum Exposure to Loss (1) Carrying Amount Maximum Exposure to Loss (1) (In millions) Fixed maturity securities AFS: Structured Securities (2) $ 36,871 $ 36,871 $ 35,112 $ 35,112 U.S. and foreign corporate 920 920 669 669 Other limited partnership interests 4,141 6,959 3,979 6,405 Other invested assets 1,796 1,905 1,914 2,066 Real estate joint ventures 25 29 33 37 Total $ 43,753 $ 46,684 $ 41,707 $ 44,289 __________________ (1) The maximum exposure to loss relating to fixed maturity securities AFS is equal to their carrying amounts or the carrying amounts of retained interests. The maximum exposure to loss relating to other limited partnership interests and real estate joint ventures is equal to the carrying amounts plus any unfunded commitments. For certain of its investments in other invested assets, the Company’s return is in the form of income tax credits which are guaranteed by creditworthy third parties. For such investments, the maximum exposure to loss is equal to the carrying amounts plus any unfunded commitments, reduced by income tax credits guaranteed by third parties of $73 million and $93 million at June 30, 2019 and December 31, 2018 , respectively. Such a maximum loss would be expected to occur only upon bankruptcy of the issuer or investee. (2) For these variable interests, the Company’s involvement is limited to that of a passive investor in mortgage-backed or asset-backed securities issued by trusts that do not have substantial equity. As described in Note 13 , the Company makes commitments to fund partnership investments in the normal course of business. Excluding these commitments, the Company did not provide financial or other support to investees designated as VIEs for both the six months ended June 30, 2019 and 2018 . For the three months ended June 30, 2019 , the Company securitized certain residential mortgage loans and acquired an interest in the related RMBS issued. While the Company has a variable interest in the issuer of the securities, it is not the primary beneficiary of the issuer of the securities since it does not have any rights to remove the servicer or veto rights over the servicer’s actions. For the three months ended June 30, 2019 , the carrying value and the estimated fair value of mortgage loans securitized were $443 million and $467 million , respectively, resulting in a gain of $24 million , which was included within net investment gains (losses). The estimated fair value of the RMBS acquired in connection with the securitizations was $133 million , which was included in the carrying amount and maximum exposure to loss for Structured Securities presented above. See Note 7 for information on how the estimated fair value of mortgage loans and RMBS is determined, the valuation approaches and key inputs, their placement in the fair value hierarchy, and, for certain RMBS, quantitative information about the significant unobservable inputs and the sensitivity of their estimated fair value to changes in those inputs. Net Investment Income The components of net investment income were as follows: Three Months Six Months 2019 2018 2019 2018 (In millions) Investment income: Fixed maturity securities AFS $ 1,780 $ 1,816 $ 3,548 $ 3,601 Equity securities 10 10 19 21 Mortgage loans 786 688 1,550 1,359 Policy loans 77 73 153 145 Real estate and real estate joint ventures 113 |
Derivatives
Derivatives | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | 6. Derivatives Accounting for Derivatives Freestanding Derivatives Freestanding derivatives are carried on the Company’s balance sheet either as assets within other invested assets or as liabilities within other liabilities at estimated fair value. The Company does not offset the estimated fair value amounts recognized for derivatives executed with the same counterparty under the same master netting agreement. Accruals on derivatives are generally recorded in accrued investment income or within other liabilities. However, accruals that are not scheduled to settle within one year are included with the derivative’s carrying value in other invested assets or other liabilities. If a derivative is not designated as an accounting hedge or its use in managing risk does not qualify for hedge accounting, changes in the estimated fair value of the derivative are reported in net derivative gains (losses) except as follows: Statement of Operations Presentation: Derivative: Policyholder benefits and claims • Economic hedges of variable annuity guarantees included in future policy benefits Net investment income • Economic hedges of equity method investments in joint ventures Hedge Accounting To qualify for hedge accounting, at the inception of the hedging relationship, the Company formally documents its risk management objective and strategy for undertaking the hedging transaction, as well as its designation of the hedge. Hedge designation and financial statement presentation of changes in estimated fair value of the hedging derivatives are as follows: • Fair value hedge - a hedge of the estimated fair value of a recognized asset or liability - in the same line item as the earnings effect of the hedged item. The carrying value of the hedged recognized asset or liability is adjusted for changes in its estimated fair value due to the hedged risk. • Cash flow hedge - a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability - in OCI and reclassified into the statement of operations when the Company’s earnings are affected by the variability in cash flows of the hedged item. The changes in estimated fair values of the hedging derivatives are exclusive of any accruals that are separately reported on the statement of operations within interest income or interest expense to match the location of the hedged item. In its hedge documentation, the Company sets forth how the hedging instrument is expected to hedge the designated risks related to the hedged item and sets forth the method that will be used to retrospectively and prospectively assess the hedging instrument’s effectiveness. A derivative designated as a hedging instrument must be assessed as being highly effective in offsetting the designated risk of the hedged item. Hedge effectiveness is formally assessed at inception and at least quarterly throughout the life of the designated hedging relationship. Assessments of hedge effectiveness are also subject to interpretation and estimation and different interpretations or estimates may have a material effect on the amount reported in net income. The Company discontinues hedge accounting prospectively when: (i) it is determined that the derivative is no longer highly effective in offsetting changes in the estimated fair value or cash flows of a hedged item; (ii) the derivative expires, is sold, terminated, or exercised; (iii) it is no longer probable that the hedged forecasted transaction will occur; or (iv) the derivative is de-designated as a hedging instrument. When hedge accounting is discontinued because it is determined that the derivative is not highly effective in offsetting changes in the estimated fair value or cash flows of a hedged item, the derivative continues to be carried on the balance sheet at its estimated fair value, with changes in estimated fair value recognized in net derivative gains (losses). The carrying value of the hedged recognized asset or liability under a fair value hedge is no longer adjusted for changes in its estimated fair value due to the hedged risk, and the cumulative adjustment to its carrying value is amortized into income over the remaining life of the hedged item. Provided the hedged forecasted transaction is still probable of occurring, the changes in estimated fair value of derivatives recorded in OCI related to discontinued cash flow hedges are released into the statement of operations when the Company’s earnings are affected by the variability in cash flows of the hedged item. When hedge accounting is discontinued because it is no longer probable that the forecasted transactions will occur on the anticipated date or within two months of that date, the derivative continues to be carried on the balance sheet at its estimated fair value, with changes in estimated fair value recognized currently in net derivative gains (losses). Deferred gains and losses of a derivative recorded in OCI pursuant to the discontinued cash flow hedge of a forecasted transaction that is no longer probable of occurring are recognized immediately in net investment gains (losses). In all other situations in which hedge accounting is discontinued, the derivative is carried at its estimated fair value on the balance sheet, with changes in its estimated fair value recognized in the current period as net derivative gains (losses). Embedded Derivatives The Company sold variable annuities and issues certain insurance products and investment contracts and is a party to certain reinsurance agreements that have embedded derivatives. The Company assesses each identified embedded derivative to determine whether it is required to be bifurcated. The embedded derivative is bifurcated from the host contract and accounted for as a freestanding derivative if: • the combined instrument is not accounted for in its entirety at estimated fair value with changes in estimated fair value recorded in earnings; • the terms of the embedded derivative are not clearly and closely related to the economic characteristics of the host contract; and • a separate instrument with the same terms as the embedded derivative would qualify as a derivative instrument. Such embedded derivatives are carried on the balance sheet at estimated fair value with the host contract and changes in their estimated fair value are generally reported in net derivative gains (losses). If the Company is unable to properly identify and measure an embedded derivative for separation from its host contract, the entire contract is carried on the balance sheet at estimated fair value, with changes in estimated fair value recognized in the current period in net investment gains (losses) or net investment income. Additionally, the Company may elect to carry an entire contract on the balance sheet at estimated fair value, with changes in estimated fair value recognized in the current period in net investment gains (losses) or net investment income if that contract contains an embedded derivative that requires bifurcation. At inception, the Company attributes to the embedded derivative a portion of the projected future guarantee fees to be collected from the policyholder equal to the present value of projected future guaranteed benefits. Any additional fees represent “excess” fees and are reported in universal life and investment-type product policy fees. See Note 7 for information about the fair value hierarchy for derivatives. Derivative Strategies The Company is exposed to various risks relating to its ongoing business operations, including interest rate, foreign currency exchange rate, credit and equity market. The Company uses a variety of strategies to manage these risks, including the use of derivatives. Derivatives are financial instruments with values derived from interest rates, foreign currency exchange rates, credit spreads and/or other financial indices. Derivatives may be exchange-traded or contracted in the over-the-counter (“OTC”) market. Certain of the Company’s OTC derivatives are cleared and settled through central clearing counterparties (“OTC-cleared”), while others are bilateral contracts between two counterparties (“OTC-bilateral”). The types of derivatives the Company uses include swaps, forwards, futures and option contracts. To a lesser extent, the Company uses credit default swaps and structured interest rate swaps to synthetically replicate investment risks and returns which are not readily available in the cash markets. Interest Rate Derivatives The Company uses a variety of interest rate derivatives to reduce its exposure to changes in interest rates, including interest rate swaps, interest rate total return swaps, caps, floors, swaptions, futures and forwards. Interest rate swaps are used by the Company primarily to reduce market risks from changes in interest rates and to alter interest rate exposure arising from mismatches between assets and liabilities (duration mismatches). In an interest rate swap, the Company agrees with another party to exchange, at specified intervals, the difference between fixed rate and floating rate interest amounts as calculated by reference to an agreed notional amount. The Company utilizes interest rate swaps in fair value, cash flow and nonqualifying hedging relationships. The Company uses structured interest rate swaps to synthetically create investments that are either more expensive to acquire or otherwise unavailable in the cash markets. These transactions are a combination of a derivative and a cash instrument such as a U.S. government and agency, or other fixed maturity securities AFS. Structured interest rate swaps are included in interest rate swaps and are not designated as hedging instruments. Interest rate total return swaps are swaps whereby the Company agrees with another party to exchange, at specified intervals, the difference between the economic risk and reward of an asset or a market index and a benchmark interest rate, calculated by reference to an agreed notional amount. No cash is exchanged at the outset of the contract. Cash is paid and received over the life of the contract based on the terms of the swap. These transactions are entered into pursuant to master agreements that provide for a single net payment to be made by the counterparty at each due date. Interest rate total return swaps are used by the Company to reduce market risks from changes in interest rates and to alter interest rate exposure arising from mismatches between assets and liabilities (duration mismatches). The Company utilizes interest rate total return swaps in nonqualifying hedging relationships. The Company purchases interest rate caps primarily to protect its floating rate liabilities against rises in interest rates above a specified level, and against interest rate exposure arising from mismatches between assets and liabilities, and interest rate floors primarily to protect its minimum rate guarantee liabilities against declines in interest rates below a specified level. In certain instances, the Company locks in the economic impact of existing purchased caps and floors by entering into offsetting written caps and floors. The Company utilizes interest rate caps and floors in nonqualifying hedging relationships. In exchange-traded interest rate (Treasury and swap) futures transactions, the Company agrees to purchase or sell a specified number of contracts, the value of which is determined by the different classes of interest rate securities, to post variation margin on a daily basis in an amount equal to the difference in the daily market values of those contracts and to pledge initial margin based on futures exchange requirements. The Company enters into exchange-traded futures with regulated futures commission merchants that are members of the exchange. Exchange-traded interest rate (Treasury and swap) futures are used primarily to hedge mismatches between the duration of assets in a portfolio and the duration of liabilities supported by those assets, to hedge against changes in value of securities the Company owns or anticipates acquiring, to hedge against changes in interest rates on anticipated liability issuances by replicating Treasury or swap curve performance, and to hedge minimum guarantees embedded in certain variable annuity products offered by the Company. The Company utilizes exchange-traded interest rate futures in nonqualifying hedging relationships. Swaptions are used by the Company to hedge interest rate risk associated with the Company’s long-term liabilities and invested assets. A swaption is an option to enter into a swap with a forward starting effective date. In certain instances, the Company locks in the economic impact of existing purchased swaptions by entering into offsetting written swaptions. The Company pays a premium for purchased swaptions and receives a premium for written swaptions. The Company utilizes swaptions in nonqualifying hedging relationships. Swaptions are included in interest rate options. The Company enters into interest rate forwards to buy and sell securities. The price is agreed upon at the time of the contract and payment for such a contract is made at a specified future date. The Company utilizes interest rate forwards in cash flow and nonqualifying hedging relationships. A synthetic guaranteed interest contract (“GIC”) is a contract that simulates the performance of a traditional GIC through the use of financial instruments. Under a synthetic GIC, the contractholder owns the underlying assets. The Company guarantees a rate of return on those assets for a premium. Synthetic GICs are not designated as hedging instruments. Foreign Currency Exchange Rate Derivatives The Company uses foreign currency exchange rate derivatives, including foreign currency swaps and foreign currency forwards, to reduce the risk from fluctuations in foreign currency exchange rates associated with its assets and liabilities denominated in foreign currencies. In a foreign currency swap transaction, the Company agrees with another party to exchange, at specified intervals, the difference between one currency and another at a fixed exchange rate, generally set at inception, calculated by reference to an agreed upon notional amount. The notional amount of each currency is exchanged at the inception and termination of the currency swap by each party. The Company utilizes foreign currency swaps in fair value, cash flow and nonqualifying hedging relationships. In a foreign currency forward transaction, the Company agrees with another party to deliver a specified amount of an identified currency at a specified future date. The price is agreed upon at the time of the contract and payment for such a contract is made at the specified future date. The Company utilizes foreign currency forwards in nonqualifying hedging relationships. Credit Derivatives The Company enters into purchased credit default swaps to hedge against credit-related changes in the value of its investments. In a credit default swap transaction, the Company agrees with another party to pay, at specified intervals, a premium to hedge credit risk. If a credit event occurs, as defined by the contract, the contract may be cash settled or it may be settled gross by the delivery of par quantities of the referenced investment equal to the specified swap notional amount in exchange for the payment of cash amounts by the counterparty equal to the par value of the investment surrendered. Credit events vary by type of issuer but typically include bankruptcy, failure to pay debt obligations and involuntary restructuring for corporate obligors, as well as repudiation, moratorium or governmental intervention for sovereign obligors. In each case, payout on a credit default swap is triggered only after the Credit Derivatives Determinations Committee of the International Swaps and Derivatives Association, Inc. (“ISDA”) deems that a credit event has occurred. The Company utilizes credit default swaps in nonqualifying hedging relationships. The Company enters into written credit default swaps to synthetically create credit investments that are either more expensive to acquire or otherwise unavailable in the cash markets. These transactions are a combination of a derivative and one or more cash instruments, such as U.S. government and agency, or other fixed maturity securities AFS. These credit default swaps are not designated as hedging instruments. The Company enters into forwards to lock in the price to be paid for forward purchases of certain securities. The price is agreed upon at the time of the contract and payment for the contract is made at a specified future date. When the primary purpose of entering into these transactions is to hedge against the risk of changes in purchase price due to changes in credit spreads, the Company designates these transactions as credit forwards. The Company utilizes credit forwards in cash flow hedging relationships. Equity Derivatives The Company uses a variety of equity derivatives to reduce its exposure to equity market risk, including equity index options, equity variance swaps, exchange-traded equity futures and equity total return swaps. Equity index options are used by the Company primarily to hedge minimum guarantees embedded in certain variable annuity products offered by the Company. To hedge against adverse changes in equity indices, the Company enters into contracts to sell the underlying equity index within a limited time at a contracted price. The contracts will be net settled in cash based on differentials in the indices at the time of exercise and the strike price. Certain of these contracts may also contain settlement provisions linked to interest rates. In certain instances, the Company may enter into a combination of transactions to hedge adverse changes in equity indices within a pre-determined range through the purchase and sale of options. The Company utilizes equity index options in nonqualifying hedging relationships. Equity variance swaps are used by the Company primarily to hedge minimum guarantees embedded in certain variable annuity products offered by the Company. In an equity variance swap, the Company agrees with another party to exchange amounts in the future, based on changes in equity volatility over a defined period. The Company utilizes equity variance swaps in nonqualifying hedging relationships. In exchange-traded equity futures transactions, the Company agrees to purchase or sell a specified number of contracts, the value of which is determined by the different classes of equity securities, to post variation margin on a daily basis in an amount equal to the difference in the daily market values of those contracts and to pledge initial margin based on futures exchange requirements. The Company enters into exchange-traded futures with regulated futures commission merchants that are members of the exchange. Exchange-traded equity futures are used primarily to hedge minimum guarantees embedded in certain variable annuity products offered by the Company. The Company utilizes exchange-traded equity futures in nonqualifying hedging relationships. In an equity total return swap, the Company agrees with another party to exchange, at specified intervals, the difference between the economic risk and reward of an asset or a market index and a benchmark interest rate, calculated by reference to an agreed notional amount. No cash is exchanged at the outset of the contract. Cash is paid and received over the life of the contract based on the terms of the swap. The Company uses equity total return swaps to hedge its equity market guarantees in certain of its insurance products. Equity total return swaps can be used as hedges or to synthetically create investments. The Company utilizes equity total return swaps in nonqualifying hedging relationships. Primary Risks Managed by Derivatives The following table presents the primary underlying risk exposure, gross notional amount, and estimated fair value of the Company’s derivatives, excluding embedded derivatives, held at: June 30, 2019 December 31, 2018 Primary Underlying Risk Exposure Gross Estimated Fair Value Gross Estimated Fair Value Assets Liabilities Assets Liabilities (In millions) Derivatives Designated as Hedging Instruments: Fair value hedges: Interest rate swaps Interest rate $ 2,315 $ 2,590 $ 3 $ 2,446 $ 2,197 $ 2 Foreign currency swaps Foreign currency exchange rate 1,140 36 4 1,191 49 — Subtotal 3,455 2,626 7 3,637 2,246 2 Cash flow hedges: Interest rate swaps Interest rate 3,457 164 8 3,181 139 1 Interest rate forwards Interest rate 2,855 39 19 3,023 — 216 Foreign currency swaps Foreign currency exchange rate 26,004 1,330 1,163 26,239 1,218 1,318 Subtotal 32,316 1,533 1,190 32,443 1,357 1,535 Total qualifying hedges 35,771 4,159 1,197 36,080 3,603 1,537 Derivatives Not Designated or Not Qualifying as Hedging Instruments: Interest rate swaps Interest rate 35,384 2,030 109 36,238 1,507 85 Interest rate floors Interest rate 12,701 186 — 12,701 102 — Interest rate caps Interest rate 52,388 30 2 54,576 154 1 Interest rate futures Interest rate 448 — — 794 — 1 Interest rate options Interest rate 28,430 605 — 24,340 185 — Interest rate total return swaps Interest rate 1,048 65 — 1,048 33 2 Synthetic GICs Interest rate 16,985 — — 18,006 — — Foreign currency swaps Foreign currency exchange rate 6,326 642 93 5,986 700 79 Foreign currency forwards Foreign currency exchange rate 662 11 7 943 15 14 Credit default swaps — purchased Credit 843 16 3 858 24 4 Credit default swaps — written Credit 8,887 180 1 7,864 67 13 Equity futures Equity market 1,707 1 7 1,006 1 6 Equity index options Equity market 24,158 482 442 23,162 706 396 Equity variance swaps Equity market 1,946 35 88 1,946 32 81 Equity total return swaps Equity market 724 — 12 886 89 — Total non-designated or nonqualifying derivatives 192,637 4,283 764 190,354 3,615 682 Total $ 228,408 $ 8,442 $ 1,961 $ 226,434 $ 7,218 $ 2,219 Based on gross notional amounts, a substantial portion of the Company’s derivatives was not designated or did not qualify as part of a hedging relationship at both June 30, 2019 and December 31, 2018 . The Company’s use of derivatives includes (i) derivatives that serve as macro hedges of the Company’s exposure to various risks and that generally do not qualify for hedge accounting due to the criteria required under the portfolio hedging rules; (ii) derivatives that economically hedge insurance liabilities that contain mortality or morbidity risk and that generally do not qualify for hedge accounting because the lack of these risks in the derivatives cannot support an expectation of a highly effective hedging relationship; (iii) derivatives that economically hedge embedded derivatives that do not qualify for hedge accounting because the changes in estimated fair value of the embedded derivatives are already recorded in net income; and (iv) written credit default swaps and interest rate swaps that are used to synthetically create investments and that do not qualify for hedge accounting because they do not involve a hedging relationship. For these nonqualified derivatives, changes in market factors can lead to the recognition of fair value changes on the statement of operations without an offsetting gain or loss recognized in earnings for the item being hedged. The Effects of Derivatives on the Interim Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) The following table presents the consolidated financial statement location and amount of gain (loss) recognized on fair value, cash flow, nonqualifying hedging relationships and embedded derivatives: Three Months Ended June 30, 2019 Net Investment Income Net Investment Gains (Losses) Net Derivative Gains (Losses) Policyholder Benefits and Claims Interest Credited to Policyholder Account Balances Other Expenses OCI (In millions) Gain (Loss) on Fair Value Hedges: Interest rate derivatives: Derivatives designated as hedging instruments (1) $ (1 ) $ — $ — $ 205 $ — $ — N/A Hedged items 2 — — (206 ) — — N/A Foreign currency exchange rate derivatives: Derivatives designated as hedging instruments (1) 9 — — — — — N/A Hedged items (10 ) — — — — — N/A Amount excluded from the assessment of hedge effectiveness — — — — — — N/A Subtotal — — — (1 ) — — N/A Gain (Loss) on Cash Flow Hedges: Interest rate derivatives: (1) Amount of gains (losses) deferred in AOCI N/A N/A N/A N/A N/A N/A $ 351 Amount of gains (losses) reclassified from AOCI into income 6 5 — — — — (11 ) Foreign currency exchange rate derivatives: (1) Amount of gains (losses) deferred in AOCI N/A N/A N/A N/A N/A N/A 172 Amount of gains (losses) reclassified from AOCI into income (1 ) 34 — — — — (33 ) Foreign currency transaction gains (losses) on hedged items — (37 ) — — — — — Credit derivatives: (1) Amount of gains (losses) deferred in AOCI N/A N/A N/A N/A N/A N/A — Amount of gains (losses) reclassified from AOCI into income — — — — — — — Subtotal 5 2 — — — — 479 Gain (Loss) on Derivatives Not Designated or Not Qualifying as Hedging Instruments: Interest rate derivatives (1) (1 ) — 607 — — — N/A Foreign currency exchange rate derivatives (1) — — 77 — — — N/A Credit derivatives — purchased (1) — — (2 ) — — — N/A Credit derivatives — written (1) — — 36 — — — N/A Equity derivatives (1) — — (147 ) (21 ) — — N/A Foreign currency transaction gains (losses) on hedged items — — (106 ) — — — N/A Subtotal (1 ) — 465 (21 ) — — N/A Earned income on derivatives 64 — 68 32 (36 ) — — Embedded derivatives (2) N/A N/A (325 ) — N/A N/A N/A Total $ 68 $ 2 $ 208 $ 10 $ (36 ) $ — $ 479 Three Months Ended June 30, 2018 Net Investment Income Net Investment Gains (Losses) Net Derivative Gains (Losses) Policyholder Benefits and Claims Interest Credited to Policyholder Account Balances Other Expenses OCI (In millions) Gain (Loss) on Fair Value Hedges: Interest rate derivatives: Derivatives designated as hedging instruments (1) $ — $ — $ (68 ) $ — $ — $ — N/A Hedged items — — 70 — — — N/A Foreign currency exchange rate derivatives: Derivatives designated as hedging instruments (1) — — 54 — — — N/A Hedged items — — (55 ) — — — N/A Amount excluded from the assessment of hedge effectiveness — — — — — — N/A Subtotal — — 1 — — — N/A Gain (Loss) on Cash Flow Hedges: Interest rate derivatives: (1) Amount of gains (losses) deferred in AOCI N/A N/A N/A N/A N/A N/A $ (58 ) Amount of gains (losses) reclassified from AOCI into income 6 — — — — — (6 ) Foreign currency exchange rate derivatives: (1) Amount of gains (losses) deferred in AOCI N/A N/A N/A N/A N/A N/A 235 Amount of gains (losses) reclassified from AOCI into income (1 ) — (398 ) — — — 399 Foreign currency transaction gains (losses) on hedged items — — 398 — — — — Credit derivatives: (1) Amount of gains (losses) deferred in AOCI N/A N/A N/A N/A N/A N/A — Amount of gains (losses) reclassified from AOCI into income — — — — — — — Subtotal 5 — — — — — 570 Gain (Loss) on Derivatives Not Designated or Not Qualifying as Hedging Instruments: Interest rate derivatives (1) — — (85 ) — — — N/A Foreign currency exchange rate derivatives (1) — — 394 — — — N/A Credit derivatives — purchased (1) — — 13 — — — N/A Credit derivatives — written (1) — — (27 ) — — — N/A Equity derivatives (1) — — (111 ) (16 ) — — N/A Foreign currency transaction gains (losses) on hedged items — — (170 ) — — — N/A Subtotal — — 14 (16 ) — — N/A Earned income on derivatives 99 — 84 2 (29 ) — — Embedded derivatives (2) N/A N/A 206 — N/A N/A N/A Total $ 104 $ — $ 305 $ (14 ) $ (29 ) $ — $ 570 Six Months Ended June 30, 2019 Net Investment Income Net Investment Gains (Losses) Net Derivative Gains (Losses) Policyholder Benefits and Claims Interest Credited to Policyholder Account Balances Other Expenses OCI (In millions) Gain (Loss) on Fair Value Hedges: Interest rate derivatives: Derivatives designated as hedging instruments (1) $ (4 ) $ — $ — $ 332 $ — $ — N/A Hedged items 5 — — (334 ) — — N/A Foreign currency exchange rate derivatives: Derivatives designated as hedging instruments (1) (20 ) — — — — — N/A Hedged items 18 — — — — — N/A Amount excluded from the assessment of hedge effectiveness — — — — — — N/A Subtotal (1 ) — — (2 ) — — N/A Gain (Loss) on Cash Flow Hedges: Interest rate derivatives: (1) Amount of gains (losses) deferred in AOCI N/A N/A N/A N/A N/A N/A $ 593 Amount of gains (losses) reclassified from AOCI into income 11 (1 ) — — — — (10 ) Foreign currency exchange rate derivatives: (1) Amount of gains (losses) deferred in AOCI N/A N/A N/A N/A N/A N/A 46 Amount of gains (losses) reclassified from AOCI into income (2 ) 81 — — — — (79 ) Foreign currency transaction gains (losses) on hedged items — (93 ) — — — — — Credit derivatives: (1) Amount of gains (losses) deferred in AOCI N/A N/A N/A N/A N/A N/A — Amount of gains (losses) reclassified from AOCI into income — — — — — — — Subtotal 9 (13 ) — — — — 550 Gain (Loss) on Derivatives Not Designated or Not Qualifying as Hedging Instruments: Interest rate derivatives (1) (2 ) — 748 — — — N/A Foreign currency exchange rate derivatives (1) — — 16 — — — N/A Credit derivatives — purchased (1) — — (12 ) — — — N/A Credit derivatives — written (1) — — 128 — — — N/A Equity derivatives (1) — — (629 ) (89 ) — — N/A Foreign currency transaction gains (losses) on hedged items — — (69 ) — — — N/A Subtotal (2 ) — 182 (89 ) — — N/A Earned income on derivatives 134 — 139 63 (68 ) — — Embedded derivatives (2) N/A N/A (423 ) — N/A N/A N/A Total $ 140 $ (13 ) $ (102 ) $ (28 ) $ (68 ) $ — $ 550 Six Months Ended June 30, 2018 Net Investment Income Net Investment Gains (Losses) Net Derivative Gains (Losses) Policyholder Benefits and Claims Interest Credited to Policyholder Account Balances Other Expenses OCI (In millions) Gain (Loss) on Fair Value Hedges: Interest rate derivatives: Derivatives designated as hedging instruments (1) $ — $ — $ (278 ) $ — $ — $ — N/A Hedged items — — 280 — — — N/A Foreign currency exchange rate derivatives: Derivatives designated as hedging instruments (1) — — 47 — — — N/A Hedged items — — (48 ) — — — N/A Amount excluded from the assessment of hedge effectiveness — — — — — — N/A Subtotal — — 1 — — — N/A Gain (Loss) on Cash Flow Hedges: Interest rate derivatives: (1) Amount of gains (losses) deferred in AOCI N/A N/A N/A N/A N/A N/A $ (335 ) Amount of gains (losses) reclassified from AOCI into income 10 — 20 — — — (30 ) Foreign currency exchange rate derivatives: (1) Amount of gains (losses) deferred in AOCI N/A N/A N/A N/A N/A N/A 6 Amount of gains (losses) reclassified from AOCI into income (1 ) — (238 ) — — — (239 ) Foreign currency transaction gains (losses) on hedged items — — 240 — — — — Credit derivatives: (1) Amount of gains (losses) deferred in AOCI N/A N/A N/A N/A N/A N/A — Amount of gains (losses) reclassified from AOCI into income — — — — — — — Subtotal 9 — 22 — — — (598 ) Gain (Loss) on Derivatives Not Designated or Not Qualifying as Hedging Instruments: Interest rate derivatives (1) 4 — (341 ) — — — N/A Foreign currency exchange rate derivatives (1) — — 180 — — — N/A Credit derivatives — purchased (1) — — 12 — — — N/A Credit derivatives — written (1) — — (55 ) — — — N/A Equity derivatives (1) 1 — (101 ) (15 ) — — N/A Foreign currency transaction gains (losses) on hedged items — — (58 ) — — — N/A Subtotal 5 — (363 ) (15 ) — — N/A Earned income on derivatives 176 — 166 4 (52 ) — — Embedded derivatives (2) N/A N/A 539 — N/A N/A N/A Total $ 190 $ — $ 365 $ (11 ) $ (52 ) $ — $ (598 ) __________________ (1) Excludes earned income on derivatives. (2) The valuation of guaranteed minimum benefits includes a nonperformance risk adjustment. The amounts included in net derivative gains (losses) in connection with this adjustment were $0 and ($11) million for the three months and six months ended June 30, 2019 , respectively, and $0 and ($21) million for the three months and six months ended June 30, 2018 , respectively. Fair Value Hedges The Company designates and accounts for the following as fair value hedges when they have met the requirements of fair value hedging: (i) interest rate swaps to convert fixed rate assets and liabilities to floating rate assets and liabilities and (ii) foreign currency swaps to hedge the foreign currency fair value exposure of foreign currency denominated assets and liabilities. The following table presents the balance sheet classification, carrying amount and cumulative fair value hedging adjustments for items designated and qualifying as hedged items in fair value hedges: June 30, 2019 Balance Sheet Line Item Carrying Amount of the Cumulative Amount (In millions) Fixed maturity securities AFS $ 257 $ (1 ) Mor |
Fair Value
Fair Value | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value | 7. Fair Value When developing estimated fair values, considerable judgment is often required in interpreting market data to develop estimates of fair value, and the use of different assumptions or valuation methodologies may have a material effect on the estimated fair value amounts. Recurring Fair Value Measurements The assets and liabilities measured at estimated fair value on a recurring basis and their corresponding placement in the fair value hierarchy, including those items for which the Company has elected the FVO, are presented below at: June 30, 2019 Fair Value Hierarchy Level 1 Level 2 Level 3 Total (In millions) Assets Fixed maturity securities AFS: U.S. corporate $ — $ 53,609 $ 3,217 $ 56,826 U.S. government and agency 11,226 17,430 — 28,656 Foreign corporate — 24,512 4,433 28,945 RMBS 20 20,513 2,875 23,408 ABS — 9,126 326 9,452 Municipals — 7,366 7 7,373 CMBS — 5,561 41 5,602 Foreign government — 4,830 10 4,840 Total fixed maturity securities AFS 11,246 142,947 10,909 165,102 Equity securities 381 72 352 805 Short-term investments 230 784 113 1,127 Residential mortgage loans — FVO — — 262 262 Other investments — 1 268 269 Derivative assets: (1) Interest rate — 5,606 103 5,709 Foreign currency exchange rate — 2,019 — 2,019 Credit — 160 36 196 Equity market 1 473 44 518 Total derivative assets 1 8,258 183 8,442 Embedded derivatives within asset host contracts (2) — — — — Separate account assets (3) 23,370 95,870 932 120,172 Total assets (4) $ 35,228 $ 247,932 $ 13,019 $ 296,179 Liabilities Derivative liabilities: (1) Interest rate $ — $ 122 $ 19 $ 141 Foreign currency exchange rate — 1,264 3 1,267 Credit — 4 — 4 Equity market 7 454 88 549 Total derivative liabilities 7 1,844 110 1,961 Embedded derivatives within liability host contracts (2) — — 1,219 1,219 Separate account liabilities (3) 2 33 7 42 Total liabilities $ 9 $ 1,877 $ 1,336 $ 3,222 December 31, 2018 Fair Value Hierarchy Level 1 Level 2 Level 3 Total (In millions) Assets Fixed maturity securities AFS: U.S. corporate $ — $ 51,676 $ 3,126 $ 54,802 U.S. government and agency 12,310 17,851 — 30,161 Foreign corporate — 21,988 3,975 25,963 RMBS — 19,719 3,018 22,737 ABS — 8,072 455 8,527 Municipals — 6,947 — 6,947 CMBS — 5,376 68 5,444 Foreign government — 4,482 10 4,492 Total fixed maturity securities AFS 12,310 136,111 10,652 159,073 Equity securities 341 76 356 773 Short-term investments 698 783 25 1,506 Residential mortgage loans — FVO — — 299 299 Other investments — 1 215 216 Derivative assets: (1) Interest rate — 4,284 33 4,317 Foreign currency exchange rate — 1,982 — 1,982 Credit — 62 29 91 Equity market 1 776 51 828 Total derivative assets 1 7,104 113 7,218 Embedded derivatives within asset host contracts (2) — — — — Separate account assets (3) 20,558 89,348 944 110,850 Total assets (4) $ 33,908 $ 233,423 $ 12,604 $ 279,935 Liabilities Derivative liabilities: (1) Interest rate $ 1 $ 89 $ 218 $ 308 Foreign currency exchange rate — 1,410 1 1,411 Credit — 13 4 17 Equity market 6 395 82 483 Total derivative liabilities 7 1,907 305 2,219 Embedded derivatives within liability host contracts (2) — — 704 704 Separate account liabilities (3) 1 20 7 28 Total liabilities $ 8 $ 1,927 $ 1,016 $ 2,951 __________________ (1) Derivative assets are presented within other invested assets on the interim condensed consolidated balance sheets and derivative liabilities are presented within other liabilities on the interim condensed consolidated balance sheets. The amounts are presented gross in the tables above to reflect the presentation on the interim condensed consolidated balance sheets, but are presented net for purposes of the rollforward in the Fair Value Measurements Using Significant Unobservable Inputs (Level 3) tables. (2) Embedded derivatives within asset host contracts are presented within premiums, reinsurance and other receivables on the interim condensed consolidated balance sheets. Embedded derivatives within liability host contracts are presented within policyholder account balances and other liabilities on the interim condensed consolidated balance sheets. (3) Investment performance related to separate account assets is fully offset by corresponding amounts credited to contractholders whose liability is reflected within separate account liabilities. Separate account liabilities are set equal to the estimated fair value of separate account assets. Separate account liabilities presented in the tables above represent derivative liabilities. (4) Total assets included in the fair value hierarchy excluded other limited partnership interests that are measured at estimated fair value using the net asset value (“NAV”) per share (or its equivalent) practical expedient. At June 30, 2019 and December 31, 2018 , the estimated fair value of such investments was $105 million and $140 million , respectively. The following describes the valuation methodologies used to measure assets and liabilities at fair value. Investments Securities, Short-term Investments and Other Investments When available, the estimated fair value of these financial instruments is based on quoted prices in active markets that are readily and regularly obtainable. Generally, these are the most liquid of the Company’s securities holdings and valuation of these securities does not involve management’s judgment. When quoted prices in active markets are not available, the determination of estimated fair value is based on market standard valuation methodologies, giving priority to observable inputs. The significant inputs to the market standard valuation methodologies for certain types of securities with reasonable levels of price transparency are inputs that are observable in the market or can be derived principally from, or corroborated by, observable market data. When observable inputs are not available, the market standard valuation methodologies rely on inputs that are significant to the estimated fair value that are not observable in the market or cannot be derived principally from, or corroborated by, observable market data. These unobservable inputs can be based in large part on management’s judgment or estimation and cannot be supported by reference to market activity. Even though these inputs are unobservable, management believes they are consistent with what other market participants would use when pricing such securities and are considered appropriate given the circumstances. The estimated fair value of other investments is determined on a basis consistent with the methodologies described herein for securities. The valuation approaches and key inputs for each category of assets or liabilities that are classified within Level 2 and Level 3 of the fair value hierarchy are presented below. The primary valuation approaches are the market approach, which considers recent prices from market transactions involving identical or similar assets or liabilities, and the income approach, which converts expected future amounts (i.e., cash flows) to a single current, discounted amount. The valuation of most instruments listed below is determined using independent pricing sources, matrix pricing, discounted cash flow methodologies or other similar techniques that use either observable market inputs or unobservable inputs. Instrument Level 2 Observable Inputs Level 3 Unobservable Inputs Fixed maturity securities AFS U.S. corporate and Foreign corporate securities Valuation Approaches: Principally the market and income approaches. Valuation Approaches: Principally the market approach. Key Inputs: Key Inputs: • quoted prices in markets that are not active • illiquidity premium • benchmark yields; spreads off benchmark yields; new issuances; issuer rating • delta spread adjustments to reflect specific credit-related issues • trades of identical or comparable securities; duration • credit spreads • Privately-placed securities are valued using the additional key inputs: • quoted prices in markets that are not active for identical or similar securities that are less liquid and based on lower levels of trading activity than securities classified in Level 2 • market yield curve; call provisions • observable prices and spreads for similar public or private securities that incorporate the credit quality and industry sector of the issuer • independent non-binding broker quotations • delta spread adjustments to reflect specific credit-related issues U.S. government and agency securities, Municipals and Foreign government securities Valuation Approaches: Principally the market approach. Valuation Approaches: Principally the market approach. Key Inputs: Key Inputs: • quoted prices in markets that are not active • independent non-binding broker quotations • benchmark U.S. Treasury yield or other yields • quoted prices in markets that are not active for identical or similar securities that are less liquid and based on lower levels of trading activity than securities classified in Level 2 • the spread off the U.S. Treasury yield curve for the identical security • issuer ratings and issuer spreads; broker-dealer quotes • credit spreads • comparable securities that are actively traded Structured Securities Valuation Approaches: Principally the market and income approaches. Valuation Approaches: Principally the market and income approaches. Key Inputs: Key Inputs: • quoted prices in markets that are not active • credit spreads • spreads for actively traded securities; spreads off benchmark yields • quoted prices in markets that are not active for identical or similar securities that are less liquid and based on lower levels of trading activity than securities classified in Level 2 • expected prepayment speeds and volumes • current and forecasted loss severity; ratings; geographic region • independent non-binding broker quotations • weighted average coupon and weighted average maturity • average delinquency rates; debt-service coverage ratios • issuance-specific information, including, but not limited to: • collateral type; structure of the security; vintage of the loans • payment terms of the underlying assets • payment priority within the tranche; deal performance Instrument Level 2 Observable Inputs Level 3 Unobservable Inputs Equity securities Valuation Approaches: Principally the market approach. Valuation Approaches: Principally the market and income approaches. Key Input: Key Inputs: • quoted prices in markets that are not considered active • credit ratings; issuance structures • quoted prices in markets that are not active for identical or similar securities that are less liquid and based on lower levels of trading activity than securities classified in Level 2 • independent non-binding broker quotations Short-term investments and Other investments • Short-term investments and other investments are of a similar nature and class to the fixed maturity securities AFS and equity securities described above; accordingly, the valuation approaches and observable inputs used in their valuation are also similar to those described above. • Short-term investments and other investments are of a similar nature and class to the fixed maturity securities AFS and equity securities described above; accordingly, the valuation approaches and unobservable inputs used in their valuation are also similar to those described above. Residential mortgage loans — FVO • N/A Valuation Approaches: Principally the market approach. Valuation Techniques and Key Inputs: These investments are based primarily on matrix pricing or other similar techniques that utilize inputs from mortgage servicers that are unobservable or cannot be derived principally from, or corroborated by, observable market data. Separate account assets and Separate account liabilities (1) Mutual funds and hedge funds without readily determinable fair values as prices are not published publicly Key Input: • N/A • quoted prices or reported NAV provided by the fund managers Other limited partnership interests • N/A Valued giving consideration to the underlying holdings Key Inputs: • liquidity; bid/ask spreads; performance record of the fund manager • other relevant variables that may impact the exit value of the particular partnership interest __________________ (1) Estimated fair value equals carrying value, based on the value of the underlying assets, including: mutual fund interests, fixed maturity securities, equity securities, derivatives, hedge funds, other limited partnership interests, short-term investments and cash and cash equivalents. Fixed maturity securities, equity securities, derivatives, short-term investments and cash and cash equivalents are similar in nature to the instruments described under “— Securities, Short-term Investments and Other Investments” and “— Derivatives — Freestanding Derivatives.” Derivatives The estimated fair value of derivatives is determined through the use of quoted market prices for exchange-traded derivatives, or through the use of pricing models for OTC-bilateral and OTC-cleared derivatives. The determination of estimated fair value, when quoted market values are not available, is based on market standard valuation methodologies and inputs that management believes are consistent with what other market participants would use when pricing such instruments. Derivative valuations can be affected by changes in interest rates, foreign currency exchange rates, financial indices, credit spreads, default risk, nonperformance risk, volatility, liquidity and changes in estimates and assumptions used in the pricing models. The significant inputs to the pricing models for most OTC-bilateral and OTC-cleared derivatives are inputs that are observable in the market or can be derived principally from, or corroborated by, observable market data. Certain OTC-bilateral and OTC-cleared derivatives may rely on inputs that are significant to the estimated fair value that are not observable in the market or cannot be derived principally from, or corroborated by, observable market data. These unobservable inputs may involve significant management judgment or estimation. Even though unobservable, these inputs are based on assumptions deemed appropriate given the circumstances and management believes they are consistent with what other market participants would use when pricing such instruments. Most inputs for OTC-bilateral and OTC-cleared derivatives are mid-market inputs but, in certain cases, liquidity adjustments are made when they are deemed more representative of exit value. Market liquidity, as well as the use of different methodologies, assumptions and inputs, may have a material effect on the estimated fair values of the Company’s derivatives and could materially affect net income. The credit risk of both the counterparty and the Company are considered in determining the estimated fair value for all OTC-bilateral and OTC-cleared derivatives, and any potential credit adjustment is based on the net exposure by counterparty after taking into account the effects of netting agreements and collateral arrangements. The Company values its OTC-bilateral and OTC-cleared derivatives using standard swap curves which may include a spread to the risk-free rate, depending upon specific collateral arrangements. This credit spread is appropriate for those parties that execute trades at pricing levels consistent with similar collateral arrangements. As the Company and its significant derivative counterparties generally execute trades at such pricing levels and hold sufficient collateral, additional credit risk adjustments are not currently required in the valuation process. The Company’s ability to consistently execute at such pricing levels is in part due to the netting agreements and collateral arrangements that are in place with all of its significant derivative counterparties. An evaluation of the requirement to make additional credit risk adjustments is performed by the Company each reporting period . Freestanding Derivatives Level 2 Valuation Approaches and Key Inputs: This level includes all types of derivatives utilized by the Company with the exception of exchange-traded derivatives included within Level 1 and those derivatives with unobservable inputs as described in Level 3. Level 3 Valuation Approaches and Key Inputs: These valuation methodologies generally use the same inputs as described in the corresponding sections for Level 2 measurements of derivatives. However, these derivatives result in Level 3 classification because one or more of the significant inputs are not observable in the market or cannot be derived principally from, or corroborated by, observable market data. Freestanding derivatives are principally valued using the income approach. Valuations of non-option-based derivatives utilize present value techniques, whereas valuations of option-based derivatives utilize option pricing models. Key inputs are as follows: Instrument Interest Rate Foreign Currency Exchange Rate Credit Equity Market Inputs common to Level 2 and Level 3 by instrument type • swap yield curves • swap yield curves • swap yield curves • swap yield curves • basis curves • basis curves • credit curves • spot equity index levels • interest rate volatility (1) • currency spot rates • recovery rates • dividend yield curves • cross currency basis curves • equity volatility (1) Level 3 • swap yield curves (2) • swap yield curves (2) • swap yield curves (2) • dividend yield curves (2) • basis curves (2) • basis curves (2) • credit curves (2) • equity volatility (1), (2) • repurchase rates • cross currency basis curves (2) • credit spreads • correlation between model inputs (1) • currency correlation • repurchase rates • independent non-binding broker quotations __________________ (1) Option-based only. (2) Extrapolation beyond the observable limits of the curve(s). Embedded Derivatives Embedded derivatives principally include certain direct and assumed variable annuity guarantees, annuity contracts, and those related to funds withheld on ceded reinsurance agreements. Embedded derivatives are recorded at estimated fair value with changes in estimated fair value reported in net income. The Company has issued certain variable annuity products with guaranteed minimum benefits. GMWBs, GMABs and certain GMIBs contain embedded derivatives, which are measured at estimated fair value separately from the host variable annuity contract, with changes in estimated fair value reported in net derivative gains (losses). These embedded derivatives are classified within policyholder account balances on the consolidated balance sheets. The Company calculates the fair value of these embedded derivatives, which are estimated as the present value of projected future benefits minus the present value of projected future fees using actuarial and capital market assumptions including expectations concerning policyholder behavior. The calculation is based on in-force business, projecting future cash flows from the embedded derivative over multiple risk neutral stochastic scenarios using observable risk-free rates. Capital market assumptions, such as risk-free rates and implied volatilities, are based on market prices for publicly traded instruments to the extent that prices for such instruments are observable. Implied volatilities beyond the observable period are extrapolated based on observable implied volatilities and historical volatilities. Actuarial assumptions, including mortality, lapse, withdrawal and utilization, are unobservable and are reviewed at least annually based on actuarial studies of historical experience. The valuation of these guarantee liabilities includes nonperformance risk adjustments and adjustments for a risk margin related to non-capital market inputs. The nonperformance adjustment is determined by taking into consideration publicly available information relating to spreads in the secondary market for MetLife, Inc.’s debt, including related credit default swaps. These observable spreads are then adjusted, as necessary, to reflect the priority of these liabilities and the claims paying ability of the issuing insurance subsidiaries as compared to MetLife, Inc. Risk margins are established to capture the non-capital market risks of the instrument which represent the additional compensation a market participant would require to assume the risks related to the uncertainties of such actuarial assumptions as annuitization, premium persistency, partial withdrawal and surrenders. The establishment of risk margins requires the use of significant management judgment, including assumptions of the amount and cost of capital needed to cover the guarantees. These guarantees may be more costly than expected in volatile or declining equity markets. Market conditions including, but not limited to, changes in interest rates, equity indices, market volatility and foreign currency exchange rates; changes in nonperformance risk; and variations in actuarial assumptions regarding policyholder behavior, mortality and risk margins related to non-capital market inputs, may result in significant fluctuations in the estimated fair value of the guarantees that could materially affect net income. The estimated fair value of the embedded derivatives within funds withheld related to certain ceded reinsurance is determined based on the change in estimated fair value of the underlying assets held by the Company in a reference portfolio backing the funds withheld liability. The estimated fair value of the underlying assets is determined as described in “— Investments — Securities, Short-term Investments and Other Investments.” The estimated fair value of these embedded derivatives is included, along with their funds withheld hosts, in other liabilities on the consolidated balance sheets with changes in estimated fair value recorded in net derivative gains (losses). Changes in the credit spreads on the underlying assets, interest rates and market volatility may result in significant fluctuations in the estimated fair value of these embedded derivatives that could materially affect net income. Embedded Derivatives Within Asset and Liability Host Contracts Level 3 Valuation Approaches and Key Inputs: Direct and assumed guaranteed minimum benefits These embedded derivatives are principally valued using the income approach. Valuations are based on option pricing techniques, which utilize significant inputs that may include swap yield curves, currency exchange rates and implied volatilities. These embedded derivatives result in Level 3 classification because one or more of the significant inputs are not observable in the market or cannot be derived principally from, or corroborated by, observable market data. Significant unobservable inputs generally include: the extrapolation beyond observable limits of the swap yield curves and implied volatilities, actuarial assumptions for policyholder behavior and mortality and the potential variability in policyholder behavior and mortality, nonperformance risk and cost of capital for purposes of calculating the risk margin. Embedded derivatives within funds withheld related to certain ceded reinsurance These embedded derivatives are principally valued using the income approach. The valuations are based on present value techniques, which utilize significant inputs that may include the swap yield curves and the fair value of assets within the reference portfolio. These embedded derivatives result in Level 3 classification because one or more of the significant inputs are not observable in the market or cannot be derived principally from, or corroborated by, observable market data. Significant unobservable inputs generally include the fair value of certain assets within the reference portfolio which are not observable in the market and cannot be derived principally from, or corroborated by, observable market data. Transfers between Levels Overall, transfers between levels occur when there are changes in the observability of inputs and market activity. Transfers into or out of Level 3: Assets and liabilities are transferred into Level 3 when a significant input cannot be corroborated with market observable data. This occurs when market activity decreases significantly and underlying inputs cannot be observed, current prices are not available, and/or when there are significant variances in quoted prices, thereby affecting transparency. Assets and liabilities are transferred out of Level 3 when circumstances change such that a significant input can be corroborated with market observable data. This may be due to a significant increase in market activity, a specific event, or one or more significant input(s) becoming observable. Assets and Liabilities Measured at Fair Value Using Significant Unobservable Inputs (Level 3) The following table presents certain quantitative information about the significant unobservable inputs used in the fair value measurement, and the sensitivity of the estimated fair value to changes in those inputs, for the more significant asset and liability classes measured at fair value on a recurring basis using significant unobservable inputs (Level 3) at: June 30, 2019 December 31, 2018 Impact of Valuation Significant Unobservable Inputs Range Weighted Average (1) Range Weighted Average (1) Fixed maturity securities AFS (3) U.S. corporate and foreign corporate • Matrix pricing • Offered quotes (4) 92 - 142 112 85 - 134 105 Increase • Market pricing • Quoted prices (4) 25 - 416 110 25 - 638 107 Increase RMBS • Market pricing • Quoted prices (4) — - 111 95 — - 106 94 Increase (5) ABS • Market pricing • Quoted prices (4) 9 - 102 98 10 - 101 97 Increase (5) Derivatives Interest rate • Present value techniques • Swap yield (6) 197 - 259 268 - 317 Increase (7) • Repurchase rates (8) (25) - 1 (5) - 6 Decrease (7) Foreign currency exchange rate • Present value techniques • Swap yield (6) (23) - (5) (20) - (5) Increase (7) Credit • Present value techniques • Credit spreads (9) 96 - 100 97 - 103 Decrease (7) • Consensus pricing • Offered quotes (10) Equity market • Present value techniques or option pricing models • Volatility (11) 16% - 23% 21% - 26% Increase (7) • Correlation (12) 10% - 30% 10% - 30% Embedded derivatives Direct and assumed guaranteed • Option pricing • Mortality rates: Ages 0 - 40 0.01% - 0.18% 0.01% - 0.18% Decrease (13) Ages 41 - 60 0.04% - 0.57% 0.04% - 0.57% Decrease (13) Ages 61 - 115 0.26% - 100% 0.26% - 100% Decrease (13) • Lapse rates: Durations 1 - 10 0.25% - 100% 0.25% - 100% Decrease (14) Durations 11 - 20 3% - 100% 3% - 100% Decrease (14) Durations 21 - 116 2.5% - 100% 2.5% - 100% Decrease (14) • Utilization rates 0% - 25% 0% - 25% Increase (15) • Withdrawal rates 0.25% - 10% 0.25% - 10% (16) • Long-term equity 16.50% - 22% 16.50% - 22% Increase (17) • Nonperformance risk 0.03% - 0.45% 0.05% - 0.59% Decrease (18) __________________ (1) The weighted average for fixed maturity securities AFS is determined based on the estimated fair value of the securities. (2) The impact of a decrease in input would have resulted in the opposite impact on estimated fair value. For embedded derivatives, changes to direct and assumed guaranteed minimum benefits are based on liability positions. (3) Significant increases (decreases) in expected default rates in isolation would have resulted in substantially lower (higher) valuations. (4) Range and weighted average are presented in accordance with the market convention for fixed maturity securities AFS of dollars per hundred dollars of par. (5) Changes in the assumptions used for the probability of default would have been accompanied by a directionally similar change in the assumption used for the loss severity and a directionally opposite change in the assumptions used for prepayment rates. (6) Ranges represent the rates across different yield curves and are presented in basis points. The swap yield curves are utilized among different types of derivatives to project cash flows, as well as to discount future cash flows to present value. Since this valuation methodology uses a range of inputs across a yield curve to value the derivative, presenting a range is more representative of the unobservable input used in the valuation. (7) Changes in estimated fair value are based on long U.S. dollar net asset positions and will be inversely impacted for short U.S. dollar net asset positions. (8) Ranges represent different repurchase rates utilized as components within the valuation methodology and are presented in basis points. (9) Represents the risk quoted in basis points of a credit default event on the underlying instrument. Credit derivatives with significant unobservable inputs are primarily comprised of written credit default swaps. (10) At both June 30, 2019 and December 31, 2018 , independent non-binding broker quotations were used in the determination of less than 1% of the total net derivative estimated fair value. (11) Ranges represent the underlying equity volatility quoted in percentage points. Since this valuation methodology uses a range of inputs across multiple volatility surfaces to value the derivative, presenting a range is more representative of the unobservable input used in the valuation. (12) Ranges represent the different correlation factors utilized as components within the valuation methodology. Presenting a range of correlation factors is more representative of the unobservable input used in the valuation. Increases (decreases) in correlation in isolation will increase (decrease) the significance of the change in valuations. (13) Mortality rates vary by age and by demographic characteristics such as gender. Mortality rate assumptions are based on company experience. A mortality improvement assumption is also applied. For any given contract, mortality rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. (14) Base lapse rates are adjusted at the contract level based on a comparison of the actuarially calculated guaranteed values and the current policyholder account value, as well as other factors, such as the applicability of any surrender charges. A dynamic lapse function reduces the base lapse rate when the guaranteed amount is greater than the account value as in the money contracts are less likely to lapse. Lapse rates are also generally assumed to be lower in periods when a surrender charge applies. For any given contract, lapse rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. (15) The utilization rate assumption estimates the percentage of contractholders with a GMIB or lifetime withdrawal benefit who will elect to utilize the benefit upon becoming eligible. The rates may vary by the type of guarantee, the amount by which the guaranteed amount is greater than the account value, the contract’s withdrawal history and by the age of the policyholder. For any given contract, utilization rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. (16) The withdrawal rate represents the percentage of account balance that any given policyholder will elect to withdraw from the contract each year. The withdrawal rate assumption varies by age and duration of the contract, and also by other factors such as benefit type. For any given contract, withdrawal rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. For GMWBs, any increase (decrease) in withdrawal rates results in an increase (decrease) in the estimated fair value of the guarantees. For GMABs and GMIBs, any increase (decrease) in withdrawal rates results in a decrease (increase) in the estimated fair value. (17) Long-term equity volatilities represent equity volatility beyond the period for which observable equity volatilities are available. For any given contract, long-term equity volatility rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. (18) Nonperformance risk spread varies by duration and by currency. For any given contract, multiple nonperformance risk spreads will apply, depending on the duration of the cash flow being discounted for purposes of valuing the embedded derivative. The following is a summary of the valuation techniques and significant unobservable inputs used in the fair value measurement of assets and liabilities classified within Level 3 that are not included in the preceding table. Generally, all other classes of securities classified within Level 3, including those within separate account assets, embedded derivative |
Leases
Leases | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Lessee, Operating Leases | 8. Leases The Company, as lessee, has entered into various lease and sublease agreements for office space and other equipment. At contract inception, the Company determines that an arrangement contains a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. For contracts that contain a lease, the Company recognizes the ROU asset in Other assets and the lease liability in Other liabilities. Leases with an initial term of 12 months or less are not recorded on the balance sheet. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. ROU assets and liabilities are determined using the Company’s incremental borrowing rate based upon information available at commencement date to recognize the present value of lease payments over the lease term. The ROU asset also includes lease payments and excludes lease incentives. Lease terms may include options to extend or terminate the lease and are included in the lease measurement when it is reasonably certain that the Company will exercise that option. The Company has lease agreements with lease and non-lease components. The Company elected the practical expedient to not separate lease and non-lease components and accounted for these items as a single lease component for all asset classes. The majority of the Company’s leases and subleases are operating leases related to office space. The Company recognizes lease expense for operating leases on a straight-line basis over the lease term. The Company has operating leases with remaining lease terms of less than one year to 12 years . The remaining lease terms for the subleases are less than one year to 10 years . ROU Asset and Lease Liability The ROU assets and lease liabilities for operating leases were: June 30, 2019 (In millions) ROU asset (1) $ 823 Lease liability (1) $ 917 __________________ (1) Assets and liabilities include amounts recognized upon adoption of new guidance. See Note 1 . Lease Costs The components of operating lease costs were as follows: Three Months Six Months 2019 (In millions) Operating lease cost $ 29 $ 58 Variable lease cost 3 6 Sublease income (20 ) (40 ) Net lease cost $ 12 $ 24 Operating lease expense was $29 million and $58 million for the three months and six months ended June 30, 2018, respectively. Non-cancelable sublease income was $17 million and $28 million for the three months and six months ended June 30, 2018, respectively. Other Information Supplemental other information related to operating leases was as follows: June 30, 2019 (Dollars in millions) Cash paid for amounts included in the measurement of lease liability - operating cash flows $ 48 ROU assets obtained in exchange for new lease liabilities $ 141 Weighted-average remaining lease term 9 years Weighted-average discount rate 3.9 % Maturities of Lease Liabilities Maturities of operating lease liabilities were as follows: June 30, 2019 (In millions) Remainder of 2019 $ 65 2020 124 2021 125 2022 123 2023 112 Thereafter 554 Total undiscounted cash flows 1,103 Less: interest 186 Present value of lease liability $ 917 Future minimum gross rental payments relating to lease arrangements in effect as determined prior to the adoption of ASU 2016-02 are as follows: December 31, 2018 (In millions) 2019 $ 125 2020 137 2021 136 2022 134 2023 122 Thereafter 567 Total $ 1,221 See Note 5 for information about the Company’s investments in leased real estate and leveraged and direct financing leases. |
Equity
Equity | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Equity | 9. Equity Accumulated Other Comprehensive Income (Loss) Information regarding changes in the balances of each component of AOCI attributable to Metropolitan Life Insurance Company was as follows: Three Months Unrealized Investment Gains (Losses), Net of Related Offsets (1) Unrealized Gains (Losses) on Derivatives Foreign Currency Translation Adjustments Defined Benefit Plans Adjustment Total (In millions) Balance, beginning of period $ 5,410 $ 1,438 $ (74 ) $ (257 ) $ 6,517 OCI before reclassifications 2,733 523 (11 ) — 3,245 Deferred income tax benefit (expense) (586 ) (109 ) 1 — (694 ) AOCI before reclassifications, net of income tax 7,557 1,852 (84 ) (257 ) 9,068 Amounts reclassified from AOCI (60 ) (44 ) — 7 (97 ) Deferred income tax benefit (expense) 12 9 — (2 ) 19 Amounts reclassified from AOCI, net of income tax (48 ) (35 ) — 5 (78 ) Balance, end of period $ 7,509 $ 1,817 $ (84 ) $ (252 ) $ 8,990 Three Months Unrealized Investment Gains (Losses), Net of Related Offsets (1) Unrealized Gains (Losses) on Derivatives Foreign Currency Translation Adjustments Defined Benefit Plans Adjustment Total (In millions) Balance, beginning of period $ 5,597 $ 563 $ (38 ) $ (2,137 ) $ 3,985 OCI before reclassifications (2,204 ) 177 (10 ) — (2,037 ) Deferred income tax benefit (expense) 470 (48 ) 1 — 423 AOCI before reclassifications, net of income tax 3,863 692 (47 ) (2,137 ) 2,371 Amounts reclassified from AOCI 89 393 — 31 513 Deferred income tax benefit (expense) (19 ) (72 ) — (6 ) (97 ) Amounts reclassified from AOCI, net of income tax 70 321 — 25 416 Balance, end of period $ 3,933 $ 1,013 $ (47 ) $ (2,112 ) $ 2,787 Six Months Unrealized Investment Gains (Losses), Net of Related Offsets (1) Unrealized Gains (Losses) on Derivatives Foreign Currency Translation Adjustments Defined Benefit Plans Adjustment Total (In millions) Balance, beginning of period $ 2,515 $ 1,382 $ (74 ) $ (261 ) $ 3,562 OCI before reclassifications 6,337 617 (14 ) (1 ) 6,939 Deferred income tax benefit (expense) (1,340 ) (130 ) 4 — (1,466 ) AOCI before reclassifications, net of income tax 7,512 1,869 (84 ) (262 ) 9,035 Amounts reclassified from AOCI (2 ) (89 ) — 13 (78 ) Deferred income tax benefit (expense) — 19 — (3 ) 16 Amounts reclassified from AOCI, net of income tax (2 ) (70 ) — 10 (62 ) Cumulative effects of changes in accounting principles (1 ) 22 — — 21 Deferred income tax benefit (expense), cumulative effects of changes in accounting principles — (4 ) — — (4 ) Cumulative effects of changes in accounting principles, net of income tax (2) (1 ) 18 — — 17 Balance, end of period $ 7,509 $ 1,817 $ (84 ) $ (252 ) $ 8,990 Six Months Unrealized Investment Gains (Losses), Net of Related Offsets (1) Unrealized Gains (Losses) on Derivatives Foreign Currency Translation Adjustments Defined Benefit Plans Adjustment Total (In millions) Balance, beginning of period $ 6,351 $ 906 $ (47 ) $ (1,782 ) $ 5,428 OCI before reclassifications (4,584 ) (329 ) 12 — (4,901 ) Deferred income tax benefit (expense) 985 55 (5 ) — 1,035 AOCI before reclassifications, net of income tax 2,752 632 (40 ) (1,782 ) 1,562 Amounts reclassified from AOCI 99 209 — 62 370 Deferred income tax benefit (expense) (21 ) (35 ) — (13 ) (69 ) Amounts reclassified from AOCI, net of income tax 78 174 — 49 301 Cumulative effects of changes in accounting principles (119 ) — — — (119 ) Deferred income tax benefit (expense), cumulative effects of changes in accounting principles 1,222 207 (7 ) (379 ) 1,043 Cumulative effects of changes in accounting principles, net of income tax (3) 1,103 207 (7 ) (379 ) 924 Balance, end of period $ 3,933 $ 1,013 $ (47 ) $ (2,112 ) $ 2,787 __________________ (1) See Note 5 for information on offsets to investments related to future policy benefits, DAC, VOBA and DSI, and the policyholder dividend obligation. (2) See Note 1 for further information on adoption of new accounting pronouncements. (3) See Note 1 of the Notes to the Consolidated Financial Statements included in the 2018 Annual Report for further information on adoption of new accounting pronouncements. Information regarding amounts reclassified out of each component of AOCI was as follows: AOCI Components Amounts Reclassified from AOCI Consolidated Statements of Three Months Six Months 2019 2018 2019 2018 (In millions) Net unrealized investment gains (losses): Net unrealized investment gains (losses) $ 82 $ (58 ) $ 41 $ (105 ) Net investment gains (losses) Net unrealized investment gains (losses) — 7 — 10 Net investment income Net unrealized investment gains (losses) (22 ) (38 ) (39 ) (4 ) Net derivative gains (losses) Net unrealized investment gains (losses), before income tax 60 (89 ) 2 (99 ) Income tax (expense) benefit (12 ) 19 — 21 Net unrealized investment gains (losses), net of income tax 48 (70 ) 2 (78 ) Unrealized gains (losses) on derivatives - cash flow hedges: Interest rate derivatives 6 6 11 10 Net investment income Interest rate derivatives 5 — (1 ) — Net investment gains (losses) Interest rate derivatives — — — 20 Net derivative gains (losses) Foreign currency exchange rate derivatives (1 ) (1 ) (2 ) (1 ) Net investment income Foreign currency exchange rate derivatives 34 — 81 — Net investment gains (losses) Foreign currency exchange rate derivatives — (398 ) — (238 ) Net derivative gains (losses) Gains (losses) on cash flow hedges, before income tax 44 (393 ) 89 (209 ) Income tax (expense) benefit (9 ) 72 (19 ) 35 Gains (losses) on cash flow hedges, net of income tax 35 (321 ) 70 (174 ) Defined benefit plans adjustment: (1) Amortization of net actuarial gains (losses) (7 ) (35 ) (14 ) (71 ) Amortization of prior service (costs) credit — 4 1 9 Amortization of defined benefit plan items, before income tax (7 ) (31 ) (13 ) (62 ) Income tax (expense) benefit 2 6 3 13 Amortization of defined benefit plan items, net of income tax (5 ) (25 ) (10 ) (49 ) Total reclassifications, net of income tax $ 78 $ (416 ) $ 62 $ (301 ) __________________ (1) These AOCI components are included in the computation of net periodic benefit costs. See Note 11 . |
Other Revenues and Other Expens
Other Revenues and Other Expenses | 6 Months Ended |
Jun. 30, 2019 | |
Other Income and Expenses [Abstract] | |
Other Income and Other Expense Disclosure | 10. Other Revenues and Other Expenses Other Revenues Information on other revenues, which primarily includes fees related to service contracts from customers, was as follows: Three Months Six Months 2019 2018 2019 2018 (In millions) Prepaid legal plans $ 82 $ 73 $ 163 $ 146 Recordkeeping and administrative services (1) 51 55 101 113 Administrative services-only contracts 53 53 106 109 Other revenue from service contracts from customers 5 22 24 34 Total revenues from service contracts from customers 191 203 394 402 Other 212 198 410 400 Total other revenues $ 403 $ 401 $ 804 $ 802 __________________ (1) Related to products and businesses no longer actively marketed by the Company. Other Expenses Information on other expenses was as follows: Three Months Six Months 2019 2018 2019 2018 (In millions) General and administrative expenses $ 629 $ 649 $ 1,199 $ 1,340 Pension, postretirement and postemployment benefit costs 26 17 52 34 Premium taxes, other taxes, and licenses & fees 76 88 153 183 Commissions and other variable expenses 454 425 895 872 Capitalization of DAC (17 ) (9 ) (29 ) (19 ) Amortization of DAC and VOBA 41 79 60 167 Interest expense on debt 26 28 53 54 Total other expenses $ 1,235 $ 1,277 $ 2,383 $ 2,631 Affiliated Expenses Commissions and other variable expenses, capitalization of DAC and amortization of DAC and VOBA include the impact of affiliated reinsurance transactions. See Note 14 for a discussion of affiliated expenses included in the table above. |
Employee Benefit Plans
Employee Benefit Plans | 6 Months Ended |
Jun. 30, 2019 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | 11. Employee Benefit Plans Pension and Other Postretirement Benefit Plans As of October 1, 2018, except for the nonqualified defined benefit pension plan, the plan sponsor was changed from the Company to an affiliate (the “Transferred Plans”). The Company remains a participating affiliate of the Transferred Plans. See Note 14 for additional information on related affiliated expenses. Through September 30, 2018, the Company sponsored and administered various qualified and nonqualified defined benefit pension plans and other postretirement employee benefit plans covering employees who meet specified eligibility requirements. Participating affiliates are allocated an equitable share of net expense related to the plans, proportionate to other expenses being allocated to these affiliates. Through September 30, 2018, the Company also provided certain postemployment benefits and certain postretirement medical and life insurance benefits for retired employees. Participating affiliates are allocated a proportionate share of net expense and contributions related to the postemployment and other postretirement plans. The components of net periodic benefit costs, reported in other expenses, were as follows: Three Months 2019 2018 Pension Benefits Other Postretirement Benefits Pension Benefits Other Postretirement Benefits (In millions) Service costs $ 5 $ — $ 39 $ 2 Interest costs 11 — 93 14 Expected return on plan assets — — (132 ) (18 ) Amortization of net actuarial (gains) losses 7 — 44 (9 ) Amortization of prior service costs (credit) — — — (4 ) Allocated to affiliates (5 ) — (21 ) 8 Net periodic benefit costs (credit) $ 18 $ — $ 23 $ (7 ) Six Months 2019 2018 Pension Benefits Other Postretirement Benefits Pension Benefits Other Postretirement Benefits (In millions) Service costs $ 9 $ — $ 79 $ 3 Interest costs 23 — 186 25 Expected return on plan assets — — (263 ) (36 ) Amortization of net actuarial (gains) losses 14 — 88 (17 ) Amortization of prior service costs (credit) (1 ) — — (9 ) Allocated to affiliates (11 ) — (38 ) 13 Net periodic benefit costs (credit) $ 34 $ — $ 52 $ (21 ) |
Income Tax
Income Tax | 6 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Tax | 12. Income Tax For the three months and six months ended June 30, 2019 , the effective tax rate on income (loss) before provision for income tax was 13% and 9% , respectively. The Company’s effective tax rate for both periods differed from the U.S. statutory rate primarily due to tax benefits related to non-taxable investment income and tax credits. For both the three months and six months ended June 30, 2018 , the effective tax rate on income (loss) before provision for income tax was 9% . The Company’s effective tax rate for both periods differed from the U.S. statutory rate primarily due to tax benefits related to non-taxable investment income, tax credits and a non-cash transfer of assets from a wholly-owned U.K. investment subsidiary to Metropolitan Life Insurance Company. |
Contingencies, Commitments and
Contingencies, Commitments and Guarantees | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies, Commitments and Guarantees | 13. Contingencies, Commitments and Guarantees Contingencies Litigation The Company is a defendant in a large number of litigation matters. Putative or certified class action litigation and other litigation and claims and assessments against the Company, in addition to those discussed below and those otherwise provided for in the Company’s consolidated financial statements, have arisen in the course of the Company’s business, including, but not limited to, in connection with its activities as an insurer, mortgage lending bank, employer, investor, investment advisor, broker-dealer, and taxpayer. The Company also receives and responds to subpoenas or other inquiries seeking a broad range of information from state regulators, including state insurance commissioners; state attorneys general or other state governmental authorities; federal regulators, including the U.S. Securities and Exchange Commission ; federal governmental authorities, including congressional committees; and the Financial Industry Regulatory Authority, as well as from local and national regulators and government authorities in jurisdictions outside the United States where the Company conducts business. The issues involved in information requests and regulatory matters vary widely, but can include inquiries or investigations concerning the Company’s compliance with applicable insurance and other laws and regulations. The Company cooperates in these inquiries. In some of the matters, very large and/or indeterminate amounts, including punitive and treble damages, are sought. Modern pleading practice in the U.S. permits considerable variation in the assertion of monetary damages or other relief. Jurisdictions may permit claimants not to specify the monetary damages sought or may permit claimants to state only that the amount sought is sufficient to invoke the jurisdiction of the trial court. In addition, jurisdictions may permit plaintiffs to allege monetary damages in amounts well exceeding reasonably possible verdicts in the jurisdiction for similar matters. This variability in pleadings, together with the actual experience of the Company in litigating or resolving through settlement numerous claims over an extended period of time, demonstrates to management that the monetary relief which may be specified in a lawsuit or claim bears little relevance to its merits or disposition value. It is not possible to predict the ultimate outcome of all pending investigations and legal proceedings. The Company establishes liabilities for litigation and regulatory loss contingencies when it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. Liabilities have been established for a number of the matters noted below. It is possible that some of the matters could require the Company to pay damages or make other expenditures or establish accruals in amounts that could not be reasonably estimated at June 30, 2019 . While the potential future charges could be material in the particular quarterly or annual periods in which they are recorded, based on information currently known to management, management does not believe any such charges are likely to have a material effect on the Company’s financial position. Given the large and/or indeterminate amounts sought in certain of these matters and the inherent unpredictability of litigation, it is possible that an adverse outcome in certain matters could, from time to time, have a material effect on the Company’s consolidated net income or cash flows in particular quarterly or annual periods. Matters as to Which an Estimate Can Be Made For some of the matters disclosed below, the Company is able to estimate a reasonably possible range of loss. For matters where a loss is believed to be reasonably possible, but not probable, the Company has not made an accrual. As of June 30, 2019 , the Company estimates the aggregate range of reasonably possible losses in excess of amounts accrued for these matters to be $0 to $175 million . Matters as to Which an Estimate Cannot Be Made For other matters disclosed below, the Company is not currently able to estimate the reasonably possible loss or range of loss. The Company is often unable to estimate the possible loss or range of loss until developments in such matters have provided sufficient information to support an assessment of the range of possible loss, such as quantification of a damage demand from plaintiffs, discovery from other parties and investigation of factual allegations, rulings by the court on motions or appeals, analysis by experts, and the progress of settlement negotiations. On a quarterly and annual basis, the Company reviews relevant information with respect to litigation contingencies and updates its accruals, disclosures and estimates of reasonably possible losses or ranges of loss based on such reviews. Asbestos-Related Claims Metropolitan Life Insurance Company is and has been a defendant in a large number of asbestos-related suits filed primarily in state courts. These suits principally allege that the plaintiff or plaintiffs suffered personal injury resulting from exposure to asbestos and seek both actual and punitive damages. Metropolitan Life Insurance Company has never engaged in the business of manufacturing, producing, distributing or selling asbestos or asbestos-containing products nor has Metropolitan Life Insurance Company issued liability or workers’ compensation insurance to companies in the business of manufacturing, producing, distributing or selling asbestos or asbestos-containing products. The lawsuits principally have focused on allegations with respect to certain research, publication and other activities of one or more of Metropolitan Life Insurance Company’s employees during the period from the 1920’s through approximately the 1950’s and allege that Metropolitan Life Insurance Company learned or should have learned of certain health risks posed by asbestos and, among other things, improperly publicized or failed to disclose those health risks. Metropolitan Life Insurance Company believes that it should not have legal liability in these cases. The outcome of most asbestos litigation matters, however, is uncertain and can be impacted by numerous variables, including differences in legal rulings in various jurisdictions, the nature of the alleged injury and factors unrelated to the ultimate legal merit of the claims asserted against Metropolitan Life Insurance Company. Metropolitan Life Insurance Company employs a number of resolution strategies to manage its asbestos loss exposure, including seeking resolution of pending litigation by judicial rulings and settling individual or groups of claims or lawsuits under appropriate circumstances. Claims asserted against Metropolitan Life Insurance Company have included negligence, intentional tort and conspiracy concerning the health risks associated with asbestos. Metropolitan Life Insurance Company’s defenses (beyond denial of certain factual allegations) include that: (i) Metropolitan Life Insurance Company owed no duty to the plaintiffs — it had no special relationship with the plaintiffs and did not manufacture, produce, distribute or sell the asbestos products that allegedly injured plaintiffs; (ii) plaintiffs did not rely on any actions of Metropolitan Life Insurance Company; (iii) Metropolitan Life Insurance Company’s conduct was not the cause of the plaintiffs’ injuries; (iv) plaintiffs’ exposure occurred after the dangers of asbestos were known; and (v) the applicable time with respect to filing suit has expired. During the course of the litigation, certain trial courts have granted motions dismissing claims against Metropolitan Life Insurance Company, while other trial courts have denied Metropolitan Life Insurance Company’s motions. There can be no assurance that Metropolitan Life Insurance Company will receive favorable decisions on motions in the future. While most cases brought to date have settled, Metropolitan Life Insurance Company intends to continue to defend aggressively against claims based on asbestos exposure, including defending claims at trials. As reported in the 2018 Annual Report, Metropolitan Life Insurance Company received approximately 3,359 asbestos-related claims in 2018 . For the six months ended June 30, 2019 and 2018 , Metropolitan Life Insurance Company received approximately 1,705 and 1,754 new asbestos-related claims, respectively. See Note 16 of the Notes to the Consolidated Financial Statements included in the 2018 Annual Report for historical information concerning asbestos claims and Metropolitan Life Insurance Company’s update in its recorded liability at December 31, 2018 . The number of asbestos cases that may be brought, the aggregate amount of any liability that Metropolitan Life Insurance Company may incur, and the total amount paid in settlements in any given year are uncertain and may vary significantly from year to year. The ability of Metropolitan Life Insurance Company to estimate its ultimate asbestos exposure is subject to considerable uncertainty, and the conditions impacting its liability can be dynamic and subject to change. The availability of reliable data is limited and it is difficult to predict the numerous variables that can affect liability estimates, including the number of future claims, the cost to resolve claims, the disease mix and severity of disease in pending and future claims, the impact of the number of new claims filed in a particular jurisdiction and variations in the law in the jurisdictions in which claims are filed, the possible impact of tort reform efforts, the willingness of courts to allow plaintiffs to pursue claims against Metropolitan Life Insurance Company when exposure to asbestos took place after the dangers of asbestos exposure were well known, and the impact of any possible future adverse verdicts and their amounts. The ability to make estimates regarding ultimate asbestos exposure declines significantly as the estimates relate to years further in the future. In the Company’s judgment, there is a future point after which losses cease to be probable and reasonably estimable. It is reasonably possible that the Company’s total exposure to asbestos claims may be materially greater than the asbestos liability currently accrued and that future charges to income may be necessary. While the potential future charges could be material in the particular quarterly or annual periods in which they are recorded, based on information currently known by management, management does not believe any such charges are likely to have a material effect on the Company’s financial position. The Company believes adequate provision has been made in its consolidated financial statements for all probable and reasonably estimable losses for asbestos-related claims. Metropolitan Life Insurance Company’s recorded asbestos liability is based on its estimation of the following elements, as informed by the facts presently known to it, its understanding of current law and its past experiences: (i) the probable and reasonably estimable liability for asbestos claims already asserted against Metropolitan Life Insurance Company, including claims settled but not yet paid; (ii) the probable and reasonably estimable liability for asbestos claims not yet asserted against Metropolitan Life Insurance Company, but which Metropolitan Life Insurance Company believes are reasonably probable of assertion; and (iii) the legal defense costs associated with the foregoing claims. Significant assumptions underlying Metropolitan Life Insurance Company’s analysis of the adequacy of its recorded liability with respect to asbestos litigation include: (i) the number of future claims; (ii) the cost to resolve claims; and (iii) the cost to defend claims. Metropolitan Life Insurance Company reevaluates on a quarterly and annual basis its exposure from asbestos litigation, including studying its claims experience, reviewing external literature regarding asbestos claims experience in the United States, assessing relevant trends impacting asbestos liability and considering numerous variables that can affect its asbestos liability exposure on an overall or per claim basis. These variables include bankruptcies of other companies involved in asbestos litigation, legislative and judicial developments, the number of pending claims involving serious disease, the number of new claims filed against it and other defendants and the jurisdictions in which claims are pending. Based upon its regular reevaluation of its exposure from asbestos litigation, Metropolitan Life Insurance Company has updated its liability analysis for asbestos-related claims through June 30, 2019 . In the Matter of Chemform, Inc. Site, Pompano Beach, Broward County, Florida In July 2010, the Environmental Protection Agency (“EPA”) alleged that Metropolitan Life Insurance Company, as successor to New England Mutual Life Insurance Company, and a third party owed costs under 1989 and 1992 agreements for the oversight and cleanup of a Superfund site in Florida (the “Chemform Site”). In September 2012, the EPA, Metropolitan Life Insurance Company, and the third party executed an agreement under which Metropolitan Life Insurance Company and the third party agreed to be responsible for certain on-going environmental testing at the Chemform Site. On July 19, 2019, the EPA, Metropolitan Life Insurance Company and the third party executed a settlement agreement to resolve the EPA’s claims for costs incurred through that date in connection with the Chemform Site. Sun Life Assurance Company of Canada Indemnity Claim In 2006, Sun Life Assurance Company of Canada (“Sun Life”), as successor to the purchaser of Metropolitan Life Insurance Company’s Canadian operations, filed a lawsuit in Toronto, seeking a declaration that Metropolitan Life Insurance Company remains liable for “market conduct claims” related to certain individual life insurance policies sold by Metropolitan Life Insurance Company that were subsequently transferred to Sun Life. In January 2010, the court found that Sun Life had given timely notice of its claim for indemnification but, because it found that Sun Life had not yet incurred an indemnifiable loss, granted Metropolitan Life Insurance Company’s motion for summary judgment. In September 2010, Sun Life notified Metropolitan Life Insurance Company that a purported class action lawsuit was filed against Sun Life in Toronto alleging sales practices claims regarding the policies sold by Metropolitan Life Insurance Company and transferred to Sun Life (the “Ontario Litigation”). On August 30, 2011, Sun Life notified Metropolitan Life Insurance Company that another purported class action lawsuit was filed against Sun Life in Vancouver, BC alleging sales practices claims regarding certain of the same policies sold by Metropolitan Life Insurance Company and transferred to Sun Life. Sun Life contends that Metropolitan Life Insurance Company is obligated to indemnify Sun Life for some or all of the claims in these lawsuits. In September 2018, the Court of Appeal for Ontario affirmed the lower court’s decision to not certify the sales practices claims in the Ontario Litigation. These sales practices cases against Sun Life are ongoing, and the Company is unable to estimate the reasonably possible loss or range of loss arising from this litigation. Owens v. Metropolitan Life Insurance Company (N.D. Ga., filed April 17, 2014) Plaintiff filed this class action lawsuit on behalf of persons for whom Metropolitan Life Insurance Company established a Total Control Account (“TCA”) to pay death benefits under an Employee Retirement Income Security Act of 1974 (“ERISA”) plan. The action alleges that Metropolitan Life Insurance Company’s use of the TCA as the settlement option for life insurance benefits under some group life insurance policies violates Metropolitan Life Insurance Company’s fiduciary duties under ERISA. As damages, plaintiff seeks disgorgement of profits that Metropolitan Life Insurance Company realized on accounts owned by members of the class. In addition, plaintiff, on behalf of a subgroup of the class, seeks interest under Georgia’s delayed settlement interest statute, alleging that the use of the TCA as the settlement option did not constitute payment. On September 27, 2016, the court denied Metropolitan Life Insurance Company’s summary judgment motion in full and granted plaintiff’s partial summary judgment motion. On September 29, 2017, the court certified a nationwide class. The court also certified a Georgia subclass. On July 29, 2019, the court preliminarily approved a proposed settlement in which Metropolitan Life Insurance Company has agreed to pay $80 million to resolve the claims of all class members. The settlement does not include or constitute an admission, concession, or finding of any fault, liability, or wrongdoing by Metropolitan Life Insurance Company. The Company accrued the full amount of the settlement payment in prior periods. Martin v. Metropolitan Life Insurance Company (Superior Court of the State of California, County of Contra Costa, filed December 17, 2015) Plaintiffs filed this putative class action lawsuit on behalf of themselves and all California persons who have been charged compound interest by Metropolitan Life Insurance Company in life insurance policy and/or premium loan balances within the last four years. Plaintiffs allege that Metropolitan Life Insurance Company has engaged in a pattern and practice of charging compound interest on life insurance policy and premium loans without the borrower authorizing such compounding, and that this constitutes an unlawful business practice under California law. Plaintiffs assert causes of action for declaratory relief, violation of California’s Unfair Competition Law and Usury Law, and unjust enrichment. Plaintiffs seek declaratory and injunctive relief, restitution of interest, and damages in an unspecified amount. On April 12, 2016, the court granted Metropolitan Life Insurance Company’s motion to dismiss. Plaintiffs appealed this ruling to the United States Court of Appeals for the Ninth Circuit. The Company intends to defend this action vigorously. Newman v. Metropolitan Life Insurance Company (N.D. Ill., filed March 23, 2016) Plaintiff filed this putative class action alleging causes of action for breach of contract, fraud, and violations of the Illinois Consumer Fraud and Deceptive Business Practices Act, on behalf of herself and all persons over age 65 who selected a Reduced Pay at Age 65 payment feature on their long-term care insurance policies and whose premium rates were increased after age 65. Plaintiff seeks unspecified compensatory, statutory and punitive damages, as well as recessionary and injunctive relief. On April 12, 2017, the court granted Metropolitan Life Insurance Company’s motion to dismiss the action. Plaintiff appealed this ruling and the United States Court of Appeals for the Seventh Circuit reversed and remanded the case to the district court for further proceedings. The Company intends to defend this action vigorously. Julian & McKinney v. Metropolitan Life Insurance Company (S.D.N.Y., filed February 9, 2017) Plaintiffs filed this putative class and collective action on behalf of themselves and all current and former long-term disability (“LTD”) claims specialists between February 2011 and the present for alleged wage and hour violations under the Fair Labor Standards Act, the New York Labor Law, and the Connecticut Minimum Wage Act. The suit alleges that Metropolitan Life Insurance Company improperly reclassified the plaintiffs and similarly situated LTD claims specialists from non-exempt to exempt from overtime pay in November 2013. As a result, they and members of the putative class were no longer eligible for overtime pay even though they allege they continued to work more than 40 hours per week. Plaintiffs seek unspecified compensatory and punitive damages, as well as other relief. On March 22, 2018, the Court conditionally certified the case as a collective action, requiring that notice be mailed to LTD claims specialists who worked for the Company from February 8, 2014 to the present. The Company intends to defend this action vigorously. Total Asset Recovery Services, LLC. v. MetLife, Inc., et al. (Supreme Court of the State of New York, County of New York, filed December 27, 2017) Total Asset Recovery Services (“The Relator”) brought an action under the qui tam provision of the New York False Claims Act (the “Act”) on behalf of itself and the State of New York. The Relator originally filed this action under seal in 2010, and the complaint was unsealed on December 19, 2017. The Relator alleges that MetLife, Inc., Metropolitan Life Insurance Company and several other insurance companies violated the Act by filing false unclaimed property reports with the State of New York from 1986 to 2017, to avoid having to escheat the proceeds of more than 25,000 life insurance policies, including policies for which the defendants escheated funds as part of their demutualizations in the late 1990s. The Relator seeks treble damages and other relief. On April 3, 2019, the Court granted MetLife, Inc.’s and Metropolitan Life Insurance Company’s motion to dismiss and dismissed the complaint in its entirety. The Relator filed a notice of appeal with the Appellate Division of the New York State Supreme Court, First Division. Miller, et al. v. Metropolitan Life Insurance Company (S.D.N.Y., filed January 4, 2019) Plaintiff filed a second amended complaint in this putative class action, purporting to assert claims on behalf of all persons who replaced their MetLife Optional Term Life or Group Universal Life policy with a Group Variable Universal Life policy wherein Metropolitan Life Insurance Company allegedly charged smoker rates for certain non-smokers. Plaintiff seeks unspecified compensatory and punitive damages, as well as other relief. The Company intends to defend this action vigorously. Regulatory and Litigation Matters Related to Group Annuity Benefits In 2018, the Company announced that it identified a material weakness in its internal control over financial reporting related to the practices and procedures for estimating reserves for certain group annuity benefits. Several regulators have made inquiries into this issue and it is possible that other jurisdictions may pursue similar investigations or inquiries. The Company is exposed to lawsuits and regulatory investigations, and could be exposed to additional legal actions relating to these issues. These may result in payments, including damages, fines, penalties, interest and other amounts assessed or awarded by courts or regulatory authorities under applicable escheat, tax, securities, ERISA, or other laws or regulations. The Company could incur significant costs in connection with these actions. Commitments Mortgage Loan Commitments The Company commits to lend funds under mortgage loan commitments. The amounts of these mortgage loan commitments were $3.5 billion and $3.6 billion at June 30, 2019 and December 31, 2018 , respectively. Commitments to Fund Partnership Investments, Bank Credit Facilities, Bridge Loans and Private Corporate Bond Investments The Company commits to fund partnership investments and to lend funds under bank credit facilities, bridge loans and private corporate bond investments. The amounts of these unfunded commitments were $4.6 billion at both June 30, 2019 and December 31, 2018 . Guarantees In the normal course of its business, the Company has provided certain indemnities, guarantees and commitments to third parties such that it may be required to make payments now or in the future. In the context of acquisition, disposition, investment and other transactions, the Company has provided indemnities and guarantees, including those related to tax, environmental and other specific liabilities and other indemnities and guarantees that are triggered by, among other things, breaches of representations, warranties or covenants provided by the Company. In addition, in the normal course of business, the Company provides indemnifications to counterparties in contracts with triggers similar to the foregoing, as well as for certain other liabilities, such as third-party lawsuits. These obligations are often subject to time limitations that vary in duration, including contractual limitations and those that arise by operation of law, such as applicable statutes of limitation. In some cases, the maximum potential obligation under the indemnities and guarantees is subject to a contractual limitation ranging from less than $1 million to $421 million , with a cumulative maximum of $793 million , while in other cases such limitations are not specified or applicable. Since certain of these obligations are not subject to limitations, the Company does not believe that it is possible to determine the maximum potential amount that could become due under these guarantees in the future. Management believes that it is unlikely the Company will have to make any material payments under these indemnities, guarantees, or commitments. In addition, the Company indemnifies its directors and officers as provided in its charters and by-laws. Also, the Company indemnifies its agents for liabilities incurred as a result of their representation of the Company’s interests. Since these indemnities are generally not subject to limitation with respect to duration or amount, the Company does not believe that it is possible to determine the maximum potential amount that could become due under these indemnities in the future. The Company’s recorded liabilities were $5 million at both June 30, 2019 and December 31, 2018 for indemnities, guarantees and commitments. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 14. Related Party Transactions Service Agreements The Company has entered into various agreements with affiliates for services necessary to conduct its activities. Typical services provided under these agreements include personnel, policy administrative functions and distribution services. The bases for such charges are modified and adjusted by management when necessary or appropriate to reflect fairly and equitably the actual cost incurred by the Company and/or affiliate. Expenses and fees incurred with affiliates related to these agreements, recorded in other expenses, were $704 million and $1.4 billion for the three months and six months ended June 30, 2019 , respectively, and $468 million and $984 million for the three months and six months ended June 30, 2018 , respectively. Total revenues received from affiliates related to these agreements were $7 million and $14 million for the three months and six months ended June 30, 2019 , respectively, and $57 million and $115 million for the three months and six months ended June 30, 2018 , respectively. The Company also entered into agreements with affiliates to provide additional services necessary to conduct the affiliates’ activities. Typical services provided under these agreements include management, policy administrative functions, investment advice and distribution services. Expenses incurred by the Company related to these agreements, included in other expenses, were $0 for both the three months and six months ended June 30, 2019 , and $409 million and $707 million for the three months and six months ended June 30, 2018 , respectively, and were reimbursed to the Company by these affiliates. In 2018, the Company and the MetLife enterprise updated its shared facilities and services structure to more efficiently share enterprise assets and services. Effective as of October 1, 2018, the Company entered into new service agreements with its affiliates, which replaced existing agreements. Under the new agreements, the Company will no longer be the primary provider of services to affiliates and will receive further services from affiliates to conduct its activities. The Company had net payables to affiliates, related to the items discussed above, of $170 million and $181 million at June 30, 2019 and December 31, 2018 , respectively. See Notes 5 and 11 for additional information on related party transactions. Related Party Reinsurance Transactions The Company has reinsurance agreements with certain of MetLife, Inc.’s subsidiaries, including MetLife Reinsurance Company of Charleston (“MRC”), MetLife Reinsurance Company of Vermont, and Metropolitan Tower Life Insurance Company, all of which are related parties. Information regarding the significant effects of affiliated reinsurance on the interim condensed consolidated statements of operations and comprehensive income (loss) was as follows: Three Months Ended Six Months 2019 2018 2019 2018 (In millions) Premiums Reinsurance assumed $ 2 $ 2 $ 5 $ 5 Reinsurance ceded (27 ) (31 ) (59 ) (63 ) Net premiums $ (25 ) $ (29 ) $ (54 ) $ (58 ) Universal life and investment-type product policy fees Reinsurance assumed $ — $ (3 ) $ — $ (2 ) Reinsurance ceded (3 ) (5 ) (9 ) (10 ) Net universal life and investment-type product policy fees $ (3 ) $ (8 ) $ (9 ) $ (12 ) Other revenues Reinsurance assumed $ (5 ) $ 2 $ (9 ) $ 5 Reinsurance ceded 139 130 266 263 Net other revenues $ 134 $ 132 $ 257 $ 268 Policyholder benefits and claims Reinsurance assumed $ 1 $ — $ 2 $ 4 Reinsurance ceded (25 ) (29 ) (58 ) (57 ) Net policyholder benefits and claims $ (24 ) $ (29 ) $ (56 ) $ (53 ) Interest credited to policyholder account balances Reinsurance assumed $ 8 $ 11 $ 15 $ 22 Reinsurance ceded (3 ) (3 ) (6 ) (6 ) Net interest credited to policyholder account balances $ 5 $ 8 $ 9 $ 16 Other expenses Reinsurance assumed $ — $ 2 $ — $ 10 Reinsurance ceded 139 126 264 258 Net other expenses $ 139 $ 128 $ 264 $ 268 Information regarding the significant effects of affiliated reinsurance on the interim condensed consolidated balance sheets was as follows at: June 30, 2019 December 31, 2018 Assumed Ceded Assumed Ceded (In millions) Assets Premiums, reinsurance and other receivables $ — $ 12,587 $ — $ 12,676 Deferred policy acquisition costs and value of business acquired — (165 ) — (175 ) Total assets $ — $ 12,422 $ — $ 12,501 Liabilities Future policy benefits $ 57 $ (6 ) $ 61 $ (1 ) Policyholder account balances 135 — 141 — Other policy-related balances 1 10 6 12 Other liabilities 842 12,688 841 12,366 Total liabilities $ 1,035 $ 12,692 $ 1,049 $ 12,377 The Company ceded two blocks of business to an affiliate on a 75% coinsurance with funds withheld basis. Certain contractual features of these agreements qualify as embedded derivatives, which are separately accounted for at estimated fair value on the Company’s consolidated balance sheets. The embedded derivatives related to the funds withheld associated with these reinsurance agreements are included within other liabilities and were $21 million and $4 million at June 30, 2019 and December 31, 2018 , respectively. Net derivative gains (losses) associated with these embedded derivatives were ($9) million and ($17) million for the three months and six months ended June 30, 2019 , respectively, and $4 million and $10 million for the three months and six months ended June 30, 2018 , respectively. Certain contractual features of the closed block agreement with MRC create an embedded derivative, which is separately accounted for at estimated fair value on the Company’s consolidated balance sheets. The embedded derivative related to the funds withheld associated with this reinsurance agreement was included within other liabilities and was $909 million and $461 million at June 30, 2019 and December 31, 2018 , respectively. Net derivative gains (losses) associated with the embedded derivative were ($226) million and ($448) million for the three months and six months ended June 30, 2019 , respectively, and $128 million and $363 million for the three months and six months ended June 30, 2018 , respectively. |
Business, Basis of Presentati_2
Business, Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Use of Estimates | The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to adopt accounting policies and make estimates and assumptions that affect amounts reported on the interim condensed consolidated financial statements. In applying these policies and estimates, management makes subjective and complex judgments that frequently require assumptions about matters that are inherently uncertain. Many of these policies, estimates and related judgments are common in the insurance and financial services industries; others are specific to the Company’s business and operations. Actual results could differ from these estimates. |
Consolidation of Subsidiaries | The accompanying interim condensed consolidated financial statements are unaudited and reflect all adjustments (including normal recurring adjustments) necessary to present fairly the financial position, results of operations and cash flows for the interim periods presented in conformity with GAAP. Interim results are not necessarily indicative of full year performance. The December 31, 2018 consolidated balance sheet data was derived from audited consolidated financial statements included in Metropolitan Life Insurance Company’s Annual Report on Form 10-K for the year ended December 31, 2018 (the “2018 Annual Report”) , which include all disclosures required by GAAP. Therefore, these interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements of the Company included in the 2018 Annual Report. Consolidation The accompanying interim condensed consolidated financial statements include the accounts of Metropolitan Life Insurance Company and its subsidiaries, as well as partnerships and joint ventures in which the Company has control, and variable interest entities (“VIEs”) for which the Company is the primary beneficiary. Intercompany accounts and transactions have been eliminated. The Company uses the equity method of accounting for real estate joint ventures and other limited partnership interests (“investee”) when it has more than a minor ownership interest or more than a minor influence over the investee’s operations. The Company generally recognizes its share of the investee’s earnings in net investment income on a three-month lag in instances where the investee’s financial information is not sufficiently timely or when the investee’s reporting period differs from the Company’s reporting period. Since the Company is a member of a controlled group of affiliated companies, its results may not be indicative of those of a stand-alone entity. Closed block assets, liabilities, revenues and expenses are combined on a line-by-line basis with the assets, liabilities, revenues and expenses outside the closed block based on the nature of the particular item. |
Reclassification | Reclassifications Certain amounts in the prior year periods’ interim condensed consolidated financial statements and related footnotes thereto have been reclassified to conform to the 2019 presentation as discussed throughout the Notes to the Interim Condensed Consolidated Financial Statements. |
New Accounting Pronouncements | Adoption of New Accounting Pronouncements Except as noted below, the ASUs adopted by the Company effective January 1, 2019 did not have a material impact on its consolidated financial statements. Standard Description Effective Date and Method of Adoption Impact on Financial Statements ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities, as clarified and amended by ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments The new guidance simplifies the application of hedge accounting in certain situations and amends the hedge accounting model to enable entities to better portray the economics of their risk management activities in their financial statements. January 1, 2019. The Company adopted using a modified retrospective approach. The adoption of the guidance resulted in an $18 million, net of income tax, increase to accumulated other comprehensive income (loss) (“AOCI”) with a corresponding decrease to retained earnings due to the reclassification of hedge ineffectiveness for cash flow hedging relationships existing as of January 1, 2019. The Company has included the expanded disclosures within Note 6. ASU 2016-02, Leases (Topic 842), as clarified and amended by ASU 2018-10, Codification Improvements to Topic 842, Leases, ASU 2018-11 , Leases (Topic 842): Targeted Improvements, and ASU 2018-20 , Leases (Topic 842): Narrow-Scope Improvements for Lessors The new guidance requires a lessee to recognize assets and liabilities for leases with lease terms of more than 12 months. Leases are classified as finance or operating leases and both types of leases are recognized on the balance sheet. Lessor accounting remains largely unchanged from previous guidance except for certain targeted changes. The new guidance also requires new qualitative and quantitative disclosures. In July 2018, two amendments to the new guidance were issued. The amendments provide the option to adopt the new guidance prospectively without adjusting comparative periods. Also, the amendments provide lessors with a practical expedient not to separate lease and non-lease components for certain operating leases. In December 2018, an amendment was issued to clarify lessor accounting relating to taxes, certain lessor’s costs and variable payments related to both lease and non-lease components. January 1, 2019. The Company adopted using a modified retrospective approach. The Company elected the package of practical expedients allowed under the transition guidance. This allowed the Company to carry forward its historical lease classification. In addition, the Company elected all other practical expedients that were allowed under the new guidance and were applicable, including the practical expedient to combine lease and non-lease components into one lease component for certain real estate leases. The adoption of this guidance resulted in the recording of additional net right-of-use (“ROU”) assets and lease liabilities of approximately $818 million and $902 million, respectively, as of January 1, 2019. The reduction of the ROU assets was a result of adjustments for prepaid/deferred rent, unamortized initial direct costs and impairment of certain ROU assets based on the net present value of the remaining minimum lease payments and sublease revenues. In addition, retained earnings increased by $95 million, net of income tax, as a result of the recognition of deferred gains on previous sale leaseback transactions. The guidance did not have a material impact on the Company’s consolidated net income and cash flows. The Company has included expanded disclosures on the consolidated balance sheets and in Notes 5 and 8. |
Investments | Maturities of Fixed Maturity Securities AFS Actual maturities may differ from contractual maturities due to the exercise of call or prepayment options. Fixed maturity securities AFS not due at a single maturity date have been presented in the year of final contractual maturity. Structured Securities are shown separately, as they are not due at a single maturity. Past Due and Nonaccrual Mortgage Loans Leased Real Estate Investments - Operating Leases Variable Interest Entities |
Derivatives | Accounting for Derivatives Freestanding Derivatives Freestanding derivatives are carried on the Company’s balance sheet either as assets within other invested assets or as liabilities within other liabilities at estimated fair value. The Company does not offset the estimated fair value amounts recognized for derivatives executed with the same counterparty under the same master netting agreement. Accruals on derivatives are generally recorded in accrued investment income or within other liabilities. However, accruals that are not scheduled to settle within one year are included with the derivative’s carrying value in other invested assets or other liabilities. If a derivative is not designated as an accounting hedge or its use in managing risk does not qualify for hedge accounting, changes in the estimated fair value of the derivative are reported in net derivative gains (losses) except as follows: Statement of Operations Presentation: Derivative: Policyholder benefits and claims • Economic hedges of variable annuity guarantees included in future policy benefits Net investment income • Economic hedges of equity method investments in joint ventures Hedge Accounting To qualify for hedge accounting, at the inception of the hedging relationship, the Company formally documents its risk management objective and strategy for undertaking the hedging transaction, as well as its designation of the hedge. Hedge designation and financial statement presentation of changes in estimated fair value of the hedging derivatives are as follows: • Fair value hedge - a hedge of the estimated fair value of a recognized asset or liability - in the same line item as the earnings effect of the hedged item. The carrying value of the hedged recognized asset or liability is adjusted for changes in its estimated fair value due to the hedged risk. • Cash flow hedge - a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability - in OCI and reclassified into the statement of operations when the Company’s earnings are affected by the variability in cash flows of the hedged item. The changes in estimated fair values of the hedging derivatives are exclusive of any accruals that are separately reported on the statement of operations within interest income or interest expense to match the location of the hedged item. In its hedge documentation, the Company sets forth how the hedging instrument is expected to hedge the designated risks related to the hedged item and sets forth the method that will be used to retrospectively and prospectively assess the hedging instrument’s effectiveness. A derivative designated as a hedging instrument must be assessed as being highly effective in offsetting the designated risk of the hedged item. Hedge effectiveness is formally assessed at inception and at least quarterly throughout the life of the designated hedging relationship. Assessments of hedge effectiveness are also subject to interpretation and estimation and different interpretations or estimates may have a material effect on the amount reported in net income. The Company discontinues hedge accounting prospectively when: (i) it is determined that the derivative is no longer highly effective in offsetting changes in the estimated fair value or cash flows of a hedged item; (ii) the derivative expires, is sold, terminated, or exercised; (iii) it is no longer probable that the hedged forecasted transaction will occur; or (iv) the derivative is de-designated as a hedging instrument. When hedge accounting is discontinued because it is determined that the derivative is not highly effective in offsetting changes in the estimated fair value or cash flows of a hedged item, the derivative continues to be carried on the balance sheet at its estimated fair value, with changes in estimated fair value recognized in net derivative gains (losses). The carrying value of the hedged recognized asset or liability under a fair value hedge is no longer adjusted for changes in its estimated fair value due to the hedged risk, and the cumulative adjustment to its carrying value is amortized into income over the remaining life of the hedged item. Provided the hedged forecasted transaction is still probable of occurring, the changes in estimated fair value of derivatives recorded in OCI related to discontinued cash flow hedges are released into the statement of operations when the Company’s earnings are affected by the variability in cash flows of the hedged item. When hedge accounting is discontinued because it is no longer probable that the forecasted transactions will occur on the anticipated date or within two months of that date, the derivative continues to be carried on the balance sheet at its estimated fair value, with changes in estimated fair value recognized currently in net derivative gains (losses). Deferred gains and losses of a derivative recorded in OCI pursuant to the discontinued cash flow hedge of a forecasted transaction that is no longer probable of occurring are recognized immediately in net investment gains (losses). In all other situations in which hedge accounting is discontinued, the derivative is carried at its estimated fair value on the balance sheet, with changes in its estimated fair value recognized in the current period as net derivative gains (losses). Embedded Derivatives The Company sold variable annuities and issues certain insurance products and investment contracts and is a party to certain reinsurance agreements that have embedded derivatives. The Company assesses each identified embedded derivative to determine whether it is required to be bifurcated. The embedded derivative is bifurcated from the host contract and accounted for as a freestanding derivative if: • the combined instrument is not accounted for in its entirety at estimated fair value with changes in estimated fair value recorded in earnings; • the terms of the embedded derivative are not clearly and closely related to the economic characteristics of the host contract; and • a separate instrument with the same terms as the embedded derivative would qualify as a derivative instrument. Such embedded derivatives are carried on the balance sheet at estimated fair value with the host contract and changes in their estimated fair value are generally reported in net derivative gains (losses). If the Company is unable to properly identify and measure an embedded derivative for separation from its host contract, the entire contract is carried on the balance sheet at estimated fair value, with changes in estimated fair value recognized in the current period in net investment gains (losses) or net investment income. Additionally, the Company may elect to carry an entire contract on the balance sheet at estimated fair value, with changes in estimated fair value recognized in the current period in net investment gains (losses) or net investment income if that contract contains an embedded derivative that requires bifurcation. At inception, the Company attributes to the embedded derivative a portion of the projected future guarantee fees to be collected from the policyholder equal to the present value of projected future guaranteed benefits. Any additional fees represent “excess” fees and are reported in universal life and investment-type product policy fees. Derivatives are financial instruments with values derived from interest rates, foreign currency exchange rates, credit spreads and/or other financial indices. Derivatives may be exchange-traded or contracted in the over-the-counter (“OTC”) market. Certain of the Company’s OTC derivatives are cleared and settled through central clearing counterparties (“OTC-cleared”), while others are bilateral contracts between two counterparties (“OTC-bilateral”). The types of derivatives the Company uses include swaps, forwards, futures and option contracts. To a lesser extent, the Company uses credit default swaps and structured interest rate swaps to synthetically replicate investment risks and returns which are not readily available in the cash markets. The Company designates and accounts for the following as fair value hedges when they have met the requirements of fair value hedging: (i) interest rate swaps to convert fixed rate assets and liabilities to floating rate assets and liabilities and (ii) foreign currency swaps to hedge the foreign currency fair value exposure of foreign currency denominated assets and liabilities. The Company designates and accounts for the following as cash flow hedges when they have met the requirements of cash flow hedging: (i) interest rate swaps to convert floating rate assets and liabilities to fixed rate assets and liabilities; (ii) foreign currency swaps to hedge the foreign currency cash flow exposure of foreign currency denominated assets and liabilities; (iii) interest rate forwards and credit forwards to lock in the price to be paid for forward purchases of investments; and (iv) interest rate swaps and interest rate forwards to hedge the forecasted purchases of fixed-rate investments. The Company may be exposed to credit-related losses in the event of nonperformance by its counterparties to derivatives. Generally, the current credit exposure of the Company’s derivatives is limited to the net positive estimated fair value of derivatives at the reporting date after taking into consideration the existence of master netting or similar agreements and any collateral received pursuant to such agreements. |
Employee Benefit Plans | Pension and Other Postretirement Benefit Plans As of October 1, 2018, except for the nonqualified defined benefit pension plan, the plan sponsor was changed from the Company to an affiliate (the “Transferred Plans”). The Company remains a participating affiliate of the Transferred Plans. See Note 14 for additional information on related affiliated expenses. |
Closed Block | On April 7, 2000 (the “Demutualization Date”), Metropolitan Life Insurance Company converted from a mutual life insurance company to a stock life insurance company and became a wholly-owned subsidiary of MetLife, Inc. The conversion was pursuant to an order by the New York Superintendent of Insurance approving Metropolitan Life Insurance Company’s plan of reorganization, as amended (the “Plan of Reorganization”). On the Demutualization Date, Metropolitan Life Insurance Company established a closed block for the benefit of holders of certain individual life insurance policies of Metropolitan Life Insurance Company. Experience within the closed block, in particular mortality and investment yields, as well as realized and unrealized gains and losses, directly impact the policyholder dividend obligation. Amortization of the closed block DAC, which resides outside of the closed block, is based upon cumulative actual and expected earnings within the closed block. Accordingly, the Company’s net income continues to be sensitive to the actual performance of the closed block. |
Leases | The Company, as lessee, has entered into various lease and sublease agreements for office space and other equipment. At contract inception, the Company determines that an arrangement contains a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. For contracts that contain a lease, the Company recognizes the ROU asset in Other assets and the lease liability in Other liabilities. Leases with an initial term of 12 months or less are not recorded on the balance sheet. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. ROU assets and liabilities are determined using the Company’s incremental borrowing rate based upon information available at commencement date to recognize the present value of lease payments over the lease term. The ROU asset also includes lease payments and excludes lease incentives. Lease terms may include options to extend or terminate the lease and are included in the lease measurement when it is reasonably certain that the Company will exercise that option. The Company has lease agreements with lease and non-lease components. The Company elected the practical expedient to not separate lease and non-lease components and accounted for these items as a single lease component for all asset classes. The majority of the Company’s leases and subleases are operating leases related to office space. The Company recognizes lease expense for operating leases on a straight-line basis over the lease term. The Company has operating leases with remaining lease terms of less than one year to 12 years . The remaining lease terms for the subleases are less than one year to 10 years . |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment Reporting Information, by Segment | Three Months Ended June 30, 2019 U.S. MetLife Holdings Corporate & Other Total Adjustments Total Consolidated (In millions) Revenues Premiums $ 4,380 $ 774 $ — $ 5,154 $ — $ 5,154 Universal life and investment-type product policy fees 264 235 — 499 22 521 Net investment income 1,701 1,191 (26 ) 2,866 (72 ) 2,794 Other revenues 202 51 150 403 — 403 Net investment gains (losses) — — — — 66 66 Net derivative gains (losses) — — — — 208 208 Total revenues 6,547 2,251 124 8,922 224 9,146 Expenses Policyholder benefits and claims and policyholder dividends 4,522 1,456 — 5,978 47 6,025 Interest credited to policyholder account balances 488 180 — 668 (5 ) 663 Capitalization of DAC (19 ) 2 — (17 ) — (17 ) Amortization of DAC and VOBA 13 60 — 73 (32 ) 41 Interest expense on debt 2 2 22 26 — 26 Other expenses 724 206 255 1,185 — 1,185 Total expenses 5,730 1,906 277 7,913 10 7,923 Provision for income tax expense (benefit) 169 67 (126 ) 110 46 156 Adjusted earnings $ 648 $ 278 $ (27 ) 899 Adjustments to: Total revenues 224 Total expenses (10 ) Provision for income tax (expense) benefit (46 ) Net income (loss) $ 1,067 $ 1,067 Three Months Ended June 30, 2018 U.S. MetLife Holdings Corporate & Other Total Adjustments Total Consolidated (In millions) Revenues Premiums $ 10,123 $ 795 $ 2 $ 10,920 $ — $ 10,920 Universal life and investment-type product policy fees 257 248 — 505 24 529 Net investment income 1,645 1,177 (38 ) 2,784 (100 ) 2,684 Other revenues 196 67 138 401 — 401 Net investment gains (losses) — — — — (30 ) (30 ) Net derivative gains (losses) — — — — 305 305 Total revenues 12,221 2,287 102 14,610 199 14,809 Expenses Policyholder benefits and claims and policyholder dividends 10,332 1,457 2 11,791 29 11,820 Interest credited to policyholder account balances 425 187 — 612 — 612 Capitalization of DAC (10 ) 1 — (9 ) — (9 ) Amortization of DAC and VOBA 15 74 — 89 (10 ) 79 Interest expense on debt 3 2 23 28 — 28 Other expenses 705 245 234 1,184 (5 ) 1,179 Total expenses 11,470 1,966 259 13,695 14 13,709 Provision for income tax expense (benefit) 159 61 (164 ) 56 37 93 Adjusted earnings $ 592 $ 260 $ 7 859 Adjustments to: Total revenues 199 Total expenses (14 ) Provision for income tax (expense) benefit (37 ) Net income (loss) $ 1,007 $ 1,007 Six Months Ended June 30, 2019 U.S. MetLife Corporate Total Adjustments Total (In millions) Revenues Premiums $ 8,682 $ 1,524 $ — $ 10,206 $ — $ 10,206 Universal life and investment-type product policy fees 528 452 — 980 44 1,024 Net investment income 3,339 2,330 (83 ) 5,586 (147 ) 5,439 Other revenues 406 114 284 804 — 804 Net investment gains (losses) — — — — 12 12 Net derivative gains (losses) — — — — (102 ) (102 ) Total revenues 12,955 4,420 201 17,576 (193 ) 17,383 Expenses Policyholder benefits and claims and policyholder dividends 8,960 2,854 — 11,814 130 11,944 Interest credited to policyholder account balances 975 358 — 1,333 (8 ) 1,325 Capitalization of DAC (34 ) 5 — (29 ) — (29 ) Amortization of DAC and VOBA 27 107 — 134 (74 ) 60 Interest expense on debt 5 4 44 53 — 53 Other expenses 1,447 406 446 2,299 — 2,299 Total expenses 11,380 3,734 490 15,604 48 15,652 Provision for income tax expense (benefit) 326 134 (254 ) 206 (50 ) 156 Adjusted earnings $ 1,249 $ 552 $ (35 ) 1,766 Adjustments to: Total revenues (193 ) Total expenses (48 ) Provision for income tax (expense) benefit 50 Net income (loss) $ 1,575 $ 1,575 Six Months Ended June 30, 2018 U.S. MetLife Corporate Total Adjustments Total (In millions) Revenues Premiums $ 14,300 $ 1,568 $ 1 $ 15,869 $ — $ 15,869 Universal life and investment-type product policy fees 510 503 — 1,013 47 1,060 Net investment income 3,238 2,381 (42 ) 5,577 (192 ) 5,385 Other revenues 392 133 277 802 — 802 Net investment gains (losses) — — — — (226 ) (226 ) Net derivative gains (losses) — — — — 365 365 Total revenues 18,440 4,585 236 23,261 (6 ) 23,255 Expenses Policyholder benefits and claims and policyholder dividends 14,743 2,831 (9 ) 17,565 31 17,596 Interest credited to policyholder account balances 819 375 — 1,194 (1 ) 1,193 Capitalization of DAC (22 ) 3 — (19 ) — (19 ) Amortization of DAC and VOBA 32 151 — 183 (16 ) 167 Interest expense on debt 6 4 44 54 — 54 Other expenses 1,424 500 512 2,436 (7 ) 2,429 Total expenses 17,002 3,864 547 21,413 7 21,420 Provision for income tax expense (benefit) 306 138 (283 ) 161 (5 ) 156 Adjusted earnings $ 1,132 $ 583 $ (28 ) 1,687 Adjustments to: Total revenues (6 ) Total expenses (7 ) Provision for income tax (expense) benefit 5 Net income (loss) $ 1,679 $ 1,679 The following table presents total assets with respect to the Company’s segments, as well as Corporate & Other, at: June 30, 2019 December 31, 2018 (In millions) U.S. $ 247,783 $ 233,998 MetLife Holdings 154,635 147,498 Corporate & Other 25,685 25,421 Total $ 428,103 $ 406,917 |
Insurance (Tables)
Insurance (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Insurance [Abstract] | |
Guarantees related to Annuity, Universal and Variable Life Contracts | Information regarding the Company’s guarantee exposure, which includes direct business, but excludes offsets from hedging or reinsurance, if any, was as follows at: June 30, 2019 December 31, 2018 In the At In the At (Dollars in millions) Annuity Contracts: Variable Annuity Guarantees: Total account value (1), (2) $ 49,796 $ 21,826 $ 47,393 $ 20,692 Separate account value (1) $ 39,994 $ 20,993 $ 37,342 $ 19,839 Net amount at risk $ 1,282 (3 ) $ 375 (4 ) $ 2,433 (3 ) $ 418 (4 ) Average attained age of contractholders 68 years 66 years 67 years 65 years Other Annuity Guarantees: Total account value (1), (2) N/A $ 144 N/A $ 144 Net amount at risk N/A $ 83 (5 ) N/A $ 85 (5 ) Average attained age of contractholders N/A 54 years N/A 53 years June 30, 2019 December 31, 2018 Secondary Paid-Up Secondary Paid-Up (Dollars in millions) Universal and Variable Life Contracts: Total account value (1), (2) $ 4,575 $ 916 $ 4,614 $ 937 Net amount at risk (6) $ 43,042 $ 6,085 $ 44,596 $ 6,290 Average attained age of policyholders 56 years 64 years 55 years 63 years __________________ (1) The Company’s annuity and life contracts with guarantees may offer more than one type of guarantee in each contract. Therefore, the amounts listed above may not be mutually exclusive. (2) Includes the contractholder’s investments in the general account and separate account, if applicable. (3) Defined as the death benefit less the total account value, as of the balance sheet date. It represents the amount of the claim that the Company would incur if death claims were filed on all contracts on the balance sheet date and includes any additional contractual claims associated with riders purchased to assist with covering income taxes payable upon death. (4) Defined as the amount (if any) that would be required to be added to the total account value to purchase a lifetime income stream, based on current annuity rates, equal to the minimum amount provided under the guaranteed benefit. This amount represents the Company’s potential economic exposure to such guarantees in the event all contractholders were to annuitize on the balance sheet date, even though the contracts contain terms that allow annuitization of the guaranteed amount only after the 10th anniversary of the contract, which not all contractholders have achieved. (5) Defined as either the excess of the upper tier, adjusted for a profit margin, less the lower tier, as of the balance sheet date or the amount (if any) that would be required to be added to the total account value to purchase a lifetime income stream, based on current annuity rates, equal to the minimum amount provided under the guaranteed benefit. These amounts represent the Company’s potential economic exposure to such guarantees in the event all contractholders were to annuitize on the balance sheet date. (6) Defined as the guarantee amount less the account value, as of the balance sheet date. It represents the amount of the claim that the Company would incur if death claims were filed on all contracts on the balance sheet date. |
Liabilities for Unpaid Claims and Claim Expenses | Information regarding the liabilities for unpaid claims and claim adjustment expenses was as follows: Six Months 2019 2018 (In millions) Balance, beginning of period $ 12,590 $ 12,090 Less: Reinsurance recoverables 1,497 1,401 Net balance, beginning of period 11,093 10,689 Incurred related to: Current period 8,830 8,425 Prior periods (1) (53 ) 73 Total incurred 8,777 8,498 Paid related to: Current period (5,424 ) (5,172 ) Prior periods (3,060 ) (3,164 ) Total paid (8,484 ) (8,336 ) Net balance, end of period 11,386 10,851 Add: Reinsurance recoverables 1,587 1,446 Balance, end of period (included in future policy benefits and other policy-related balances) $ 12,973 $ 12,297 __________________ (1) For the six months ended June 30, 2019 , claims and claim adjustment expenses associated with prior periods decreased due to favorable claims experience in the current period. For the six months ended June 30, 2018 , claims and claim adjustment expenses associated with prior periods increased due to events incurred in prior periods but reported in the current period. |
Closed Block (Tables)
Closed Block (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Closed Block Disclosure [Abstract] | |
Closed block liabilities and assets | Information regarding the closed block liabilities and assets designated to the closed block was as follow s at: June 30, 2019 December 31, 2018 (In millions) Closed Block Liabilities Future policy benefits $ 39,608 $ 40,032 Other policy-related balances 395 317 Policyholder dividends payable 457 431 Policyholder dividend obligation 1,834 428 Deferred income tax liability 51 28 Other liabilities 137 328 Total closed block liabilities 42,482 41,564 Assets Designated to the Closed Block Investments: Fixed maturity securities available-for-sale, at estimated fair value 26,132 25,354 Equity securities, at estimated fair value 64 61 Contractholder-directed equity securities and fair value option securities, at estimated fair value 49 43 Mortgage loans 6,900 6,778 Policy loans 4,498 4,527 Real estate and real estate joint ventures 550 544 Other invested assets 657 643 Total investments 38,850 37,950 Cash and cash equivalents 75 — Accrued investment income 434 443 Premiums, reinsurance and other receivables 85 83 Current income tax recoverable 78 69 Total assets designated to the closed block 39,522 38,545 Excess of closed block liabilities over assets designated to the closed block 2,960 3,019 Amounts included in AOCI: Unrealized investment gains (losses), net of income tax 2,226 1,089 Unrealized gains (losses) on derivatives, net of income tax 103 86 Allocated to policyholder dividend obligation, net of income tax (1,449 ) (338 ) Total amounts included in AOCI 880 837 Maximum future earnings to be recognized from closed block assets and liabilities $ 3,840 $ 3,856 |
Closed block policyholder dividend obligation | Information regarding the closed block policyholder dividend obligation was as follows: Six Months Year (In millions) Balance, beginning of period $ 428 $ 2,121 Change in unrealized investment and derivative gains (losses) 1,406 (1,693 ) Balance, end of period $ 1,834 $ 428 |
Closed block revenues and expenses | Information regarding the closed block revenues and expenses was as follows: Three Months Six Months 2019 2018 2019 2018 (In millions) Revenues Premiums $ 390 $ 410 $ 757 $ 797 Net investment income 447 431 875 875 Net investment gains (losses) (4 ) (24 ) (5 ) (53 ) Net derivative gains (losses) 9 13 12 10 Total revenues 842 830 1,639 1,629 Expenses Policyholder benefits and claims 563 596 1,102 1,167 Policyholder dividends 231 238 459 482 Other expenses 28 30 57 59 Total expenses 822 864 1,618 1,708 Revenues, net of expenses before provision for income tax expense (benefit) 20 (34 ) 21 (79 ) Provision for income tax expense (benefit) 4 (7 ) 4 (17 ) Revenues, net of expenses and provision for income tax expense (benefit) $ 16 $ (27 ) $ 17 $ (62 ) |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Fixed Maturity Available-for-Sale and Equity Securities | The following table presents the fixed maturity securities AFS by sector. U.S. corporate and foreign corporate sectors include redeemable preferred stock. Residential mortgage-backed securities (“RMBS”) includes Agency, prime, alternative and sub-prime mortgage-backed securities. Asset-backed securities (“ABS”) includes securities collateralized by corporate loans and consumer loans. Municipals includes taxable and tax-exempt revenue bonds and, to a much lesser extent, general obligations of states, municipalities and political subdivisions. Commercial mortgage-backed securities (“CMBS”) primarily includes securities collateralized by multiple properties. RMBS, ABS and CMBS are collectively, “Structured Securities.” June 30, 2019 December 31, 2018 Amortized Gross Unrealized Estimated Amortized Gross Unrealized Estimated Temporary OTTI Temporary OTTI (In millions) U.S. corporate $ 52,042 $ 5,084 $ 300 $ — $ 56,826 $ 53,927 $ 2,440 $ 1,565 $ — $ 54,802 U.S. government and agency 25,195 3,483 22 — 28,656 28,139 2,388 366 — 30,161 Foreign corporate 27,852 1,787 694 — 28,945 26,592 674 1,303 — 25,963 RMBS 22,187 1,261 76 (36 ) 23,408 22,186 831 305 (25 ) 22,737 ABS 9,449 52 49 — 9,452 8,599 40 112 — 8,527 Municipals 5,983 1,390 — — 7,373 6,070 907 30 — 6,947 CMBS 5,396 222 16 — 5,602 5,471 48 75 — 5,444 Foreign government 4,242 641 43 — 4,840 4,191 408 107 — 4,492 Total fixed maturity securities AFS $ 152,346 $ 13,920 $ 1,200 $ (36 ) $ 165,102 $ 155,175 $ 7,736 $ 3,863 $ (25 ) $ 159,073 __________________ (1) Noncredit OTTI losses included in AOCI in an unrealized gain position are due to increases in estimated fair value subsequent to initial recognition of noncredit losses on such securities. See also “— Net Unrealized Investment Gains (Losses).” Equity securities are summarized as follows at: June 30, 2019 December 31, 2018 Estimated Fair Value % of Total Estimated Fair Value % of Total (Dollars in millions) Common stock $ 472 58.6 % $ 442 57.2 % Non-redeemable preferred stock 333 41.4 331 42.8 Total equity securities $ 805 100.0 % $ 773 100.0 % |
Available-for-sale fixed maturity securities by contractual maturity date | The amortized cost and estimated fair value of fixed maturity securities AFS, by contractual maturity date, were as follows at June 30, 2019 : Due in One Year or Less Due After One Year Through Five Years Due After Five Years Through Ten Years Due After Ten Years Structured Securities Total Fixed Maturity Securities AFS (In millions) Amortized cost $ 9,778 $ 25,123 $ 25,828 $ 54,585 $ 37,032 $ 152,346 Estimated fair value $ 9,734 $ 25,726 $ 27,617 $ 63,563 $ 38,462 $ 165,102 |
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity Securities Available-for-Sale | The following table presents the estimated fair value and gross unrealized losses of fixed maturity securities AFS in an unrealized loss position by sector and aggregated by length of time that the securities have been in a continuous unrealized loss position at: June 30, 2019 December 31, 2018 Less than 12 Months Equal to or Greater Less than 12 Months Equal to or Greater Estimated Gross Estimated Gross Estimated Gross Estimated Gross (Dollars in millions) U.S. corporate $ 3,379 $ 91 $ 3,005 $ 209 $ 23,398 $ 1,176 $ 3,043 $ 389 U.S. government and agency 1,483 1 2,270 21 4,322 29 7,948 337 Foreign corporate 1,976 119 4,955 575 12,911 893 2,138 410 RMBS 1,154 13 2,420 27 5,611 107 4,482 173 ABS 3,718 28 1,636 21 5,958 105 223 7 Municipals 21 — 16 — 675 22 94 8 CMBS 381 1 265 15 2,455 45 344 30 Foreign government 56 3 280 40 1,364 83 191 24 Total fixed maturity securities AFS $ 12,168 $ 256 $ 14,847 $ 908 $ 56,694 $ 2,460 $ 18,463 $ 1,378 Total number of securities in an unrealized loss position 1,208 1,042 5,263 1,125 |
Disclosure of Mortgage Loans Net of Valuation Allowance | Mortgage loans are summarized as follows at: June 30, 2019 December 31, 2018 Carrying Value % of Total Carrying Value % of Total (Dollars in millions) Mortgage loans: Commercial $ 38,270 59.2 % $ 38,123 59.9 % Agricultural 14,523 22.5 14,164 22.2 Residential 11,916 18.4 11,392 17.9 Total recorded investment 64,709 100.1 63,679 100.0 Valuation allowances (300 ) (0.5 ) (291 ) (0.5 ) Subtotal mortgage loans, net 64,409 99.6 63,388 99.5 Residential — FVO (1) 262 0.4 299 0.5 Total mortgage loans, net $ 64,671 100.0 % $ 63,687 100.0 % __________________ (1) Information on residential mortgage loans — fair value option (“FVO”) is presented in Note 7 . The Company elects the FVO for certain residential mortgage loans that are managed on a total return basis. |
Disclosure of mortgage loans held-for-investment and valuation allowances by method of evaluation for credit loss | Mortgage loans by portfolio segment, by method of evaluation of credit loss, impaired mortgage loans including those modified in a troubled debt restructuring, and the related valuation allowances, were as follows at: Evaluated Individually for Credit Losses Evaluated Collectively for Credit Losses Impaired Loans Impaired Loans with a Valuation Allowance Impaired Loans without a Valuation Allowance Unpaid Principal Balance Recorded Investment Valuation Unpaid Principal Balance Recorded Recorded Valuation Carrying (In millions) June 30, 2019 Commercial $ — $ — $ — $ — $ — $ 38,270 $ 193 $ — Agricultural 31 31 3 191 190 14,302 43 218 Residential — — — 504 403 11,513 61 403 Total $ 31 $ 31 $ 3 $ 695 $ 593 $ 64,085 $ 297 $ 621 December 31, 2018 Commercial $ — $ — $ — $ — $ — $ 38,123 $ 190 $ — Agricultural 31 31 3 169 169 13,964 41 197 Residential — — — 431 386 11,006 57 386 Total $ 31 $ 31 $ 3 $ 600 $ 555 $ 63,093 $ 288 $ 583 |
Allowance for Loan and Lease Losses, Provision for Loss, Net | The changes in the valuation allowance, by portfolio segment, were as follows: Six Months 2019 2018 Commercial Agricultural Residential Total Commercial Agricultural Residential Total (In millions) Balance, beginning of period $ 190 $ 44 $ 57 $ 291 $ 173 $ 40 $ 58 $ 271 Provision (release) 3 2 8 13 10 — 2 12 Charge-offs, net of recoveries — — (4 ) (4 ) — — (4 ) (4 ) Balance, end of period $ 193 $ 46 $ 61 $ 300 $ 183 $ 40 $ 56 $ 279 |
Schedule of Past Due and Non Accrual Mortgage Loans | The past due and nonaccrual mortgage loans at recorded investment, prior to valuation allowances, by portfolio segment, were as follows at: Past Due Greater than 90 Days Past Due and Still Accruing Interest Nonaccrual June 30, 2019 December 31, 2018 June 30, 2019 December 31, 2018 June 30, 2019 December 31, 2018 (In millions) Commercial $ — $ — $ — $ — $ 167 $ 167 Agricultural 134 204 52 109 105 105 Residential 361 402 — — 361 402 Total $ 495 $ 606 $ 52 $ 109 $ 633 $ 674 |
Disclosure Real Estate and Real Estate Joint Ventures | Real estate investments, by income type, as well as income earned, are as follows at and for the periods indicated: June 30, 2019 December 31, 2018 Three Months Six Months 2019 2018 2019 2018 Carrying Value Income (In millions) Leased real estate investments $ 1,246 $ 1,134 $ 40 $ 57 $ 81 $ 113 Other real estate investments 477 460 50 53 80 84 Real estate joint ventures 4,691 4,558 23 32 18 56 Total real estate and real estate joint ventures $ 6,414 $ 6,152 $ 113 $ 142 $ 179 $ 253 |
Schedule of Operating Leases by Property Type | Leased real estate investments and income earned, by property type, are as follows at and for the periods indicated: June 30, 2019 December 31, 2018 Three Months Six Months 2019 2018 2019 2018 Carrying Value Income (In millions) Leased real estate investments: Office $ 373 $ 373 $ 12 $ 18 $ 26 $ 34 Retail 532 450 18 15 35 33 Apartment (1) — — — 16 — 29 Industrial 262 209 10 8 20 17 Other 79 102 — — — — Total leased real estate investments $ 1,246 $ 1,134 $ 40 $ 57 $ 81 $ 113 __________________ (1) The Company sold its investment in apartment properties in the fourth quarter of 2018. |
Components of Leveraged and Direct Financing Leases | Investment in leveraged and direct financing leases consisted of the following at: June 30, 2019 December 31, 2018 Leveraged Direct Leveraged Direct (In millions) Lease receivables, net (1) $ 707 $ 244 $ 715 $ 256 Estimated residual values 618 42 618 42 Subtotal 1,325 286 1,333 298 Unearned income (383 ) (91 ) (401 ) (100 ) Investment in leases $ 942 $ 195 $ 932 $ 198 __________________ (1) Future contractual receipts under direct financing leases at June 30, 2019 are $11 million for the remainder of 2019, $21 million in 2020, $21 million in 2021, $21 million in 2022, $21 million in 2023, $149 million thereafter, and in total are $244 million . |
Components of net unrealized investment gains (losses) included in accumulated other comprehensive income (loss) | The components of net unrealized investment gains (losses), included in AOCI, were as follows: June 30, 2019 December 31, 2018 (In millions) Fixed maturity securities AFS $ 12,733 $ 3,890 Fixed maturity securities AFS with noncredit OTTI losses included in AOCI 36 25 Total fixed maturity securities AFS 12,769 3,915 Derivatives 2,292 1,742 Other 162 231 Subtotal 15,223 5,888 Amounts allocated from: Future policy benefits (641 ) (5 ) DAC, VOBA and DSI (979 ) (571 ) Policyholder dividend obligation (1,834 ) (428 ) Subtotal (3,454 ) (1,004 ) Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI (7 ) (5 ) Deferred income tax benefit (expense) (2,436 ) (982 ) Net unrealized investment gains (losses) $ 9,326 $ 3,897 The changes in net unrealized investment gains (losses) were as follows: Six Months (In millions) Balance, beginning of period $ 3,897 Cumulative effects of changes in accounting principles, net of income tax (Note 1) 17 Fixed maturity securities AFS on which noncredit OTTI losses have been recognized 11 Unrealized investment gains (losses) during the period 9,302 Unrealized investment gains (losses) relating to: Future policy benefits (636 ) DAC, VOBA and DSI (408 ) Policyholder dividend obligation (1,406 ) Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI (2 ) Deferred income tax benefit (expense) (1,449 ) Balance, end of period $ 9,326 Change in net unrealized investment gains (losses) $ 5,429 |
Securities Lending and Repurchase Agreements | A summary of the securities lending and repurchase agreements transactions is as follows: June 30, 2019 December 31, 2018 Securities on Loan (1) Securities on Loan (1) Amortized Cost Estimated Fair Value Cash Collateral Received from Counterparties (2), (3) Reinvestment Portfolio at Estimated Fair Value Amortized Cost Estimated Fair Value Cash Collateral Received from Counterparties (2), (3) Reinvestment Portfolio at Estimated Fair Value (In millions) Securities lending $ 11,061 $ 12,500 $ 12,778 $ 12,936 $ 12,521 $ 13,138 $ 13,351 $ 13,376 Repurchase agreements $ 1,458 $ 1,565 $ 1,535 $ 1,553 $ 974 $ 1,020 $ 1,000 $ 1,001 __________________ (1) Securities on loan in connection with securities lending are included within fixed maturities securities AFS and cash equivalents and securities on loan in connection with repurchase agreements are included within fixed maturities securities AFS, short-term investments and cash equivalents. (2) In connection with securities lending, in addition to cash collateral received, the Company received from counterparties security collateral of $8 million and $64 million at June 30, 2019 and December 31, 2018 , respectively , which may not be sold or re-pledged, unless the counterparty is in default, and is not reflected on the consolidated financial statements. (3) The securities lending liability for cash collateral is included within payables for collateral under securities loaned and other transactions, and the repurchase agreements liability for cash collateral is included within payables for collateral under securities loaned and other transactions and other liabilities. A summary of the remaining contractual maturities of securities lending agreements and repurchase agreements is as follows: June 30, 2019 December 31, 2018 Remaining Maturities Remaining Maturities Open (1) 1 Month or Less Over 1 to 6 Months Total Open (1) 1 Month or Less Over 1 to 6 Months Total (In millions) Cash collateral liability by loaned security type: Securities lending: U.S. government and agency $ 2,168 $ 3,137 $ 7,473 $ 12,778 $ 1,970 $ 7,426 $ 3,955 $ 13,351 Repurchase agreements: U.S. government and agency $ — $ 1,535 $ — $ 1,535 $ — $ 1,000 $ — $ 1,000 __________________ (1) The related loaned security could be returned to the Company on the next business day, which would require the Company to immediately return the cash collateral. The estimated fair value of the securities on loan related to this cash collateral at June 30, 2019 was $2.1 billion , all of which were U.S. government and agency securities which, if put back to the Company, could be immediately sold to satisfy the cash requirement. |
Invested Assets on Deposit, Held in Trust and Pledged as Collateral | Invested assets on deposit and pledged as collateral are presented below at estimated fair value for all asset classes, except mortgage loans, which are presented at carrying value at: June 30, 2019 December 31, 2018 (In millions) Invested assets on deposit (regulatory deposits) $ 47 $ 47 Invested assets pledged as collateral (1) 20,756 20,207 Total invested assets on deposit and pledged as collateral $ 20,803 $ 20,254 __________________ (1) The Company has pledged invested assets in connection with various agreements and transactions, including funding agreements (see Note 4 of the Notes to the Consolidated Financial Statements included in the 2018 Annual Report) and derivative transactions (see Note 6 ). |
Components of Net Investment Income | The components of net investment income were as follows: Three Months Six Months 2019 2018 2019 2018 (In millions) Investment income: Fixed maturity securities AFS $ 1,780 $ 1,816 $ 3,548 $ 3,601 Equity securities 10 10 19 21 Mortgage loans 786 688 1,550 1,359 Policy loans 77 73 153 145 Real estate and real estate joint ventures 113 142 179 253 Other limited partnership interests 173 88 258 235 Cash, cash equivalents and short-term investments 44 29 87 49 FVO Securities (1) 10 — 33 — Operating joint venture 34 14 45 21 Other 32 64 91 143 Subtotal 3,059 2,924 5,963 5,827 Less: Investment expenses 265 240 524 442 Net investment income $ 2,794 $ 2,684 $ 5,439 $ 5,385 __________________ (1) Changes in estimated fair value subsequent to purchase for FVO securities (“FVO Securities”) still held as of June 30, 2019 included in net investment income were $10 million and $33 million for the three months and six months ended June 30, 2019 , respectively. There were no changes in estimated fair value subsequent to purchase for FVO Securities still held as of June 30, 2018 included in net investment income for both the three months and six months ended June 30, 2018 . |
Components of Net Investment Gains (Losses) | The components of net investment gains (losses) were as follows: Three Months Six Months 2019 2018 2019 2018 (In millions) Total gains (losses) on fixed maturity securities AFS: Total OTTI losses recognized — by sector and industry: U.S. and foreign corporate securities — by industry: Industrial $ — $ — $ (6 ) $ — Total U.S. and foreign corporate securities — — (6 ) — RMBS — — (2 ) — OTTI losses on fixed maturity securities AFS recognized in earnings — — (8 ) — Fixed maturity securities AFS — net gains (losses) on sales and disposals 81 (64 ) 49 (109 ) Total gains (losses) on fixed maturity securities AFS 81 (64 ) 41 (109 ) Total gains (losses) on equity securities: Equity securities — net gains (losses) on sales and disposals 2 8 11 8 Change in estimated fair value of equity securities (1) (12 ) — 45 (39 ) Total gains (losses) on equity securities (10 ) 8 56 (31 ) Mortgage loans 18 (12 ) 4 (33 ) Real estate and real estate joint ventures (1 ) 75 2 100 Other limited partnership interests — 8 — 8 Other (2) (3) (9 ) (73 ) (59 ) (179 ) Subtotal 79 (58 ) 44 (244 ) Change in estimated fair value of other limited partnership interests and real estate joint ventures 4 (1 ) (12 ) (7 ) Non-investment portfolio gains (losses) (17 ) 29 (20 ) 25 Subtotal (13 ) 28 (32 ) 18 Total net investment gains (losses) $ 66 $ (30 ) $ 12 $ (226 ) __________________ (1) C hanges in estimated fair value subsequent to purchase for equity securities still held as of the end of the period included in net investment gains (losses) were ($10) million and $42 million for the three months and six months ended June 30, 2019 , respectively, and $7 million and ($30) million for the three months and six months ended June 30, 2018 , respectively. (2) Other gains (losses) for the three months and six months ended June 30, 2019 included tax credit partnership impairment losses of $14 million and $92 million , respectively, and a renewable energy partnership disposal gain of $46 million for the six months ended June 30, 2019 . (3) Other gains (losses) included renewable energy partnership disposal losses of $83 million f or both the three months and six months ended June 30, 2018 and leveraged lease impairment losses of $105 million for the six months ended June 30, 2018 . |
Proceeds from sales or disposals of fixed maturity securities and the components of fixed maturity securities net investment gains and losses | Proceeds from sales or disposals and the components of net investment gains (losses) were as shown in the table below: Three Months Six Months 2019 2018 2019 2018 (In millions) Proceeds $ 10,194 $ 11,585 $ 20,859 $ 24,840 Gross investment gains $ 169 $ 40 $ 304 $ 91 Gross investment losses (88 ) (104 ) (255 ) (200 ) OTTI losses — — (8 ) — Net investment gains (losses) $ 81 $ (64 ) $ 41 $ (109 ) |
Rollforward of the Cumulative Credit Loss Component of OTTI income (loss) | The table below presents a rollforward of the cumulative credit loss component of OTTI loss recognized in earnings on fixed maturity securities AFS still held for which a portion of the OTTI loss was recognized in OCI: Three Months Six Months 2019 2018 2019 2018 (In millions) Balance, beginning of period $ 66 $ 104 $ 70 $ 110 Sales (maturities, pay downs or prepayments) of securities previously impaired as credit loss OTTI (8 ) (11 ) (11 ) (17 ) Increase in cash flows — accretion of previous credit loss OTTI — (1 ) (1 ) (1 ) Balance, end of period $ 58 $ 92 $ 58 $ 92 |
Schedule of Related Party Transactions | Recurring related party investments and related net investment income were as follows at and for the periods ended: June 30, 2019 December 31, 2018 Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Investment Type/Balance Sheet Category Related Party Carrying Value Net Investment Income (In millions) Affiliated investments (1) MetLife, Inc. $ 1,834 $ 1,798 $ 9 $ 4 $ 17 $ 15 Affiliated investments (2) American Life Insurance Company 100 100 1 1 2 2 Affiliated investments (3) Metropolitan Property and Casualty Insurance Company 315 315 2 2 5 4 Other invested assets $ 2,249 $ 2,213 $ 12 $ 7 $ 24 $ 21 Money market pool (4) Metropolitan Money Market Pool $ 64 $ 52 $ 1 $ 1 $ 1 $ 1 Short-term investments $ 64 $ 52 $ 1 $ 1 $ 1 $ 1 ________________ (1) Represents an investment in affiliated senior notes. See Note 8 of the Notes to the Consolidated Financial Statements included in the 2018 Annual Report for a description of the redenomination of each of these affiliated senior notes in 2018 from U.S. dollar to Japanese yen, and the respective maturity dates, interest rates and interest payment terms of each of the redenominated affiliated senior notes. In July 2019 , a ¥53.3 billion 1.45% affiliated senior note matured and was refinanced with a ¥37.3 billion 1.60% affiliated senior note due July 2023 and a ¥16.0 billion 1.64% affiliated senior note due July 2026 . The affiliated senior notes have maturity dates from October 2019 to July 2026 and bear interest, payable semi-annually, at a rate per annum ranging from 0.82% to 3.14% . (2) Represents an investment in an affiliated surplus note. The surplus note, which bears interest at a fixed rate of 3.17% , payable semiannually, is due June 2020 . (3) Represents an investment in affiliated preferred stock. Dividends are payable quarterly at a variable rate. (4) The investment has a variable rate of return. |
Commercial Mortgage Loans | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Disclosure of the mortgage loans portfolio segment by the recorded investment, prior to valuation allowances, by credit quality indicator categories | The credit quality of commercial mortgage loans was as follows at: Recorded Investment Estimated % of Debt Service Coverage Ratios % of > 1.20x 1.00x - 1.20x < 1.00x Total (Dollars in millions) June 30, 2019 Loan-to-value ratios: Less than 65% $ 31,529 $ 612 $ 152 $ 32,293 84.4 % $ 33,456 84.6 % 65% to 75% 4,548 26 152 4,726 12.3 4,849 12.3 76% to 80% 309 210 55 574 1.5 566 1.4 Greater than 80% 482 195 — 677 1.8 653 1.7 Total $ 36,868 $ 1,043 $ 359 $ 38,270 100.0 % $ 39,524 100.0 % December 31, 2018 Loan-to-value ratios: Less than 65% $ 31,282 $ 723 $ 85 $ 32,090 84.2 % $ 32,440 84.3 % 65% to 75% 4,759 — 21 4,780 12.5 4,829 12.6 76% to 80% 340 210 56 606 1.6 585 1.5 Greater than 80% 480 167 — 647 1.7 613 1.6 Total $ 36,861 $ 1,100 $ 162 $ 38,123 100.0 % $ 38,467 100.0 % |
Residential Mortgage Loans | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Disclosure of the mortgage loans portfolio segment by the recorded investment, prior to valuation allowances, by credit quality indicator categories | The credit quality of residential mortgage loans was as follows at: June 30, 2019 December 31, 2018 Recorded Investment % of Total Recorded Investment % of Total (Dollars in millions) Performance indicators: Performing $ 11,555 97.0 % $ 10,990 96.5 % Nonperforming (1) 361 3.0 402 3.5 Total $ 11,916 100.0 % $ 11,392 100.0 % __________________ (1) Includes residential mortgage loans in process of foreclosure of $123 million and $140 million at June 30, 2019 and December 31, 2018 , respectively. |
Agricultural Mortgage Loans | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Disclosure of the mortgage loans portfolio segment by the recorded investment, prior to valuation allowances, by credit quality indicator categories | The credit quality of agricultural mortgage loans was as follows at: June 30, 2019 December 31, 2018 Recorded Investment % of Total Recorded Investment % of Total (Dollars in millions) Loan-to-value ratios: Less than 65% $ 13,555 93.3 % $ 13,075 92.3 % 65% to 75% 876 6.0 1,034 7.3 76% to 80% 69 0.5 32 0.2 Greater than 80% 23 0.2 23 0.2 Total $ 14,523 100.0 % $ 14,164 100.0 % |
Variable Interest Entity, Primary Beneficiary | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Schedule of Variable Interest Entities | The following table presents the total assets and total liabilities relating to investment-related VIEs for which the Company has concluded that it is the primary beneficiary and which are consolidated at: June 30, 2019 December 31, 2018 Total Assets Total Liabilities Total Assets Total Liabilities (In millions) Real estate joint ventures (1) $ 1,409 $ — $ 1,394 $ — Renewable energy partnership (2) 99 — 102 — Investment fund (primarily mortgage loans) (3) 228 — 219 — Other investments 20 5 21 5 Total $ 1,756 $ 5 $ 1,736 $ 5 __________________ (1) The Company’s investment in these affiliated real estate joint ventures was $1.3 billion at both June 30, 2019 and December 31, 2018 . Other affiliates’ investments in these affiliated real estate joint ventures were $130 million and $123 million at June 30, 2019 and December 31, 2018 , respectively. (2) Assets of the renewable energy partnership primarily consisted of other invested assets. (3) The Company’s investment in this affiliated investment fund was $186 million and $178 million at June 30, 2019 and December 31, 2018 , respectively. An affiliate had an investment in this affiliated investment fund of $42 million and $41 million at June 30, 2019 and December 31, 2018 , respectively. |
Variable Interest Entity, Not Primary Beneficiary | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Schedule of Variable Interest Entities | The carrying amount and maximum exposure to loss relating to VIEs in which the Company holds a significant variable interest but is not the primary beneficiary and which have not been consolidated were as follows at: June 30, 2019 December 31, 2018 Carrying Amount Maximum Exposure to Loss (1) Carrying Amount Maximum Exposure to Loss (1) (In millions) Fixed maturity securities AFS: Structured Securities (2) $ 36,871 $ 36,871 $ 35,112 $ 35,112 U.S. and foreign corporate 920 920 669 669 Other limited partnership interests 4,141 6,959 3,979 6,405 Other invested assets 1,796 1,905 1,914 2,066 Real estate joint ventures 25 29 33 37 Total $ 43,753 $ 46,684 $ 41,707 $ 44,289 __________________ (1) The maximum exposure to loss relating to fixed maturity securities AFS is equal to their carrying amounts or the carrying amounts of retained interests. The maximum exposure to loss relating to other limited partnership interests and real estate joint ventures is equal to the carrying amounts plus any unfunded commitments. For certain of its investments in other invested assets, the Company’s return is in the form of income tax credits which are guaranteed by creditworthy third parties. For such investments, the maximum exposure to loss is equal to the carrying amounts plus any unfunded commitments, reduced by income tax credits guaranteed by third parties of $73 million and $93 million at June 30, 2019 and December 31, 2018 , respectively. Such a maximum loss would be expected to occur only upon bankruptcy of the issuer or investee. (2) For these variable interests, the Company’s involvement is limited to that of a passive investor in mortgage-backed or asset-backed securities issued by trusts that do not have substantial equity. |
Derivatives (Tables)
Derivatives (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location | The following table presents the primary underlying risk exposure, gross notional amount, and estimated fair value of the Company’s derivatives, excluding embedded derivatives, held at: June 30, 2019 December 31, 2018 Primary Underlying Risk Exposure Gross Estimated Fair Value Gross Estimated Fair Value Assets Liabilities Assets Liabilities (In millions) Derivatives Designated as Hedging Instruments: Fair value hedges: Interest rate swaps Interest rate $ 2,315 $ 2,590 $ 3 $ 2,446 $ 2,197 $ 2 Foreign currency swaps Foreign currency exchange rate 1,140 36 4 1,191 49 — Subtotal 3,455 2,626 7 3,637 2,246 2 Cash flow hedges: Interest rate swaps Interest rate 3,457 164 8 3,181 139 1 Interest rate forwards Interest rate 2,855 39 19 3,023 — 216 Foreign currency swaps Foreign currency exchange rate 26,004 1,330 1,163 26,239 1,218 1,318 Subtotal 32,316 1,533 1,190 32,443 1,357 1,535 Total qualifying hedges 35,771 4,159 1,197 36,080 3,603 1,537 Derivatives Not Designated or Not Qualifying as Hedging Instruments: Interest rate swaps Interest rate 35,384 2,030 109 36,238 1,507 85 Interest rate floors Interest rate 12,701 186 — 12,701 102 — Interest rate caps Interest rate 52,388 30 2 54,576 154 1 Interest rate futures Interest rate 448 — — 794 — 1 Interest rate options Interest rate 28,430 605 — 24,340 185 — Interest rate total return swaps Interest rate 1,048 65 — 1,048 33 2 Synthetic GICs Interest rate 16,985 — — 18,006 — — Foreign currency swaps Foreign currency exchange rate 6,326 642 93 5,986 700 79 Foreign currency forwards Foreign currency exchange rate 662 11 7 943 15 14 Credit default swaps — purchased Credit 843 16 3 858 24 4 Credit default swaps — written Credit 8,887 180 1 7,864 67 13 Equity futures Equity market 1,707 1 7 1,006 1 6 Equity index options Equity market 24,158 482 442 23,162 706 396 Equity variance swaps Equity market 1,946 35 88 1,946 32 81 Equity total return swaps Equity market 724 — 12 886 89 — Total non-designated or nonqualifying derivatives 192,637 4,283 764 190,354 3,615 682 Total $ 228,408 $ 8,442 $ 1,961 $ 226,434 $ 7,218 $ 2,219 |
Components of Net Derivatives Gains (Losses) | The Effects of Derivatives on the Interim Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) The following table presents the consolidated financial statement location and amount of gain (loss) recognized on fair value, cash flow, nonqualifying hedging relationships and embedded derivatives: Three Months Ended June 30, 2019 Net Investment Income Net Investment Gains (Losses) Net Derivative Gains (Losses) Policyholder Benefits and Claims Interest Credited to Policyholder Account Balances Other Expenses OCI (In millions) Gain (Loss) on Fair Value Hedges: Interest rate derivatives: Derivatives designated as hedging instruments (1) $ (1 ) $ — $ — $ 205 $ — $ — N/A Hedged items 2 — — (206 ) — — N/A Foreign currency exchange rate derivatives: Derivatives designated as hedging instruments (1) 9 — — — — — N/A Hedged items (10 ) — — — — — N/A Amount excluded from the assessment of hedge effectiveness — — — — — — N/A Subtotal — — — (1 ) — — N/A Gain (Loss) on Cash Flow Hedges: Interest rate derivatives: (1) Amount of gains (losses) deferred in AOCI N/A N/A N/A N/A N/A N/A $ 351 Amount of gains (losses) reclassified from AOCI into income 6 5 — — — — (11 ) Foreign currency exchange rate derivatives: (1) Amount of gains (losses) deferred in AOCI N/A N/A N/A N/A N/A N/A 172 Amount of gains (losses) reclassified from AOCI into income (1 ) 34 — — — — (33 ) Foreign currency transaction gains (losses) on hedged items — (37 ) — — — — — Credit derivatives: (1) Amount of gains (losses) deferred in AOCI N/A N/A N/A N/A N/A N/A — Amount of gains (losses) reclassified from AOCI into income — — — — — — — Subtotal 5 2 — — — — 479 Gain (Loss) on Derivatives Not Designated or Not Qualifying as Hedging Instruments: Interest rate derivatives (1) (1 ) — 607 — — — N/A Foreign currency exchange rate derivatives (1) — — 77 — — — N/A Credit derivatives — purchased (1) — — (2 ) — — — N/A Credit derivatives — written (1) — — 36 — — — N/A Equity derivatives (1) — — (147 ) (21 ) — — N/A Foreign currency transaction gains (losses) on hedged items — — (106 ) — — — N/A Subtotal (1 ) — 465 (21 ) — — N/A Earned income on derivatives 64 — 68 32 (36 ) — — Embedded derivatives (2) N/A N/A (325 ) — N/A N/A N/A Total $ 68 $ 2 $ 208 $ 10 $ (36 ) $ — $ 479 Three Months Ended June 30, 2018 Net Investment Income Net Investment Gains (Losses) Net Derivative Gains (Losses) Policyholder Benefits and Claims Interest Credited to Policyholder Account Balances Other Expenses OCI (In millions) Gain (Loss) on Fair Value Hedges: Interest rate derivatives: Derivatives designated as hedging instruments (1) $ — $ — $ (68 ) $ — $ — $ — N/A Hedged items — — 70 — — — N/A Foreign currency exchange rate derivatives: Derivatives designated as hedging instruments (1) — — 54 — — — N/A Hedged items — — (55 ) — — — N/A Amount excluded from the assessment of hedge effectiveness — — — — — — N/A Subtotal — — 1 — — — N/A Gain (Loss) on Cash Flow Hedges: Interest rate derivatives: (1) Amount of gains (losses) deferred in AOCI N/A N/A N/A N/A N/A N/A $ (58 ) Amount of gains (losses) reclassified from AOCI into income 6 — — — — — (6 ) Foreign currency exchange rate derivatives: (1) Amount of gains (losses) deferred in AOCI N/A N/A N/A N/A N/A N/A 235 Amount of gains (losses) reclassified from AOCI into income (1 ) — (398 ) — — — 399 Foreign currency transaction gains (losses) on hedged items — — 398 — — — — Credit derivatives: (1) Amount of gains (losses) deferred in AOCI N/A N/A N/A N/A N/A N/A — Amount of gains (losses) reclassified from AOCI into income — — — — — — — Subtotal 5 — — — — — 570 Gain (Loss) on Derivatives Not Designated or Not Qualifying as Hedging Instruments: Interest rate derivatives (1) — — (85 ) — — — N/A Foreign currency exchange rate derivatives (1) — — 394 — — — N/A Credit derivatives — purchased (1) — — 13 — — — N/A Credit derivatives — written (1) — — (27 ) — — — N/A Equity derivatives (1) — — (111 ) (16 ) — — N/A Foreign currency transaction gains (losses) on hedged items — — (170 ) — — — N/A Subtotal — — 14 (16 ) — — N/A Earned income on derivatives 99 — 84 2 (29 ) — — Embedded derivatives (2) N/A N/A 206 — N/A N/A N/A Total $ 104 $ — $ 305 $ (14 ) $ (29 ) $ — $ 570 Six Months Ended June 30, 2019 Net Investment Income Net Investment Gains (Losses) Net Derivative Gains (Losses) Policyholder Benefits and Claims Interest Credited to Policyholder Account Balances Other Expenses OCI (In millions) Gain (Loss) on Fair Value Hedges: Interest rate derivatives: Derivatives designated as hedging instruments (1) $ (4 ) $ — $ — $ 332 $ — $ — N/A Hedged items 5 — — (334 ) — — N/A Foreign currency exchange rate derivatives: Derivatives designated as hedging instruments (1) (20 ) — — — — — N/A Hedged items 18 — — — — — N/A Amount excluded from the assessment of hedge effectiveness — — — — — — N/A Subtotal (1 ) — — (2 ) — — N/A Gain (Loss) on Cash Flow Hedges: Interest rate derivatives: (1) Amount of gains (losses) deferred in AOCI N/A N/A N/A N/A N/A N/A $ 593 Amount of gains (losses) reclassified from AOCI into income 11 (1 ) — — — — (10 ) Foreign currency exchange rate derivatives: (1) Amount of gains (losses) deferred in AOCI N/A N/A N/A N/A N/A N/A 46 Amount of gains (losses) reclassified from AOCI into income (2 ) 81 — — — — (79 ) Foreign currency transaction gains (losses) on hedged items — (93 ) — — — — — Credit derivatives: (1) Amount of gains (losses) deferred in AOCI N/A N/A N/A N/A N/A N/A — Amount of gains (losses) reclassified from AOCI into income — — — — — — — Subtotal 9 (13 ) — — — — 550 Gain (Loss) on Derivatives Not Designated or Not Qualifying as Hedging Instruments: Interest rate derivatives (1) (2 ) — 748 — — — N/A Foreign currency exchange rate derivatives (1) — — 16 — — — N/A Credit derivatives — purchased (1) — — (12 ) — — — N/A Credit derivatives — written (1) — — 128 — — — N/A Equity derivatives (1) — — (629 ) (89 ) — — N/A Foreign currency transaction gains (losses) on hedged items — — (69 ) — — — N/A Subtotal (2 ) — 182 (89 ) — — N/A Earned income on derivatives 134 — 139 63 (68 ) — — Embedded derivatives (2) N/A N/A (423 ) — N/A N/A N/A Total $ 140 $ (13 ) $ (102 ) $ (28 ) $ (68 ) $ — $ 550 Six Months Ended June 30, 2018 Net Investment Income Net Investment Gains (Losses) Net Derivative Gains (Losses) Policyholder Benefits and Claims Interest Credited to Policyholder Account Balances Other Expenses OCI (In millions) Gain (Loss) on Fair Value Hedges: Interest rate derivatives: Derivatives designated as hedging instruments (1) $ — $ — $ (278 ) $ — $ — $ — N/A Hedged items — — 280 — — — N/A Foreign currency exchange rate derivatives: Derivatives designated as hedging instruments (1) — — 47 — — — N/A Hedged items — — (48 ) — — — N/A Amount excluded from the assessment of hedge effectiveness — — — — — — N/A Subtotal — — 1 — — — N/A Gain (Loss) on Cash Flow Hedges: Interest rate derivatives: (1) Amount of gains (losses) deferred in AOCI N/A N/A N/A N/A N/A N/A $ (335 ) Amount of gains (losses) reclassified from AOCI into income 10 — 20 — — — (30 ) Foreign currency exchange rate derivatives: (1) Amount of gains (losses) deferred in AOCI N/A N/A N/A N/A N/A N/A 6 Amount of gains (losses) reclassified from AOCI into income (1 ) — (238 ) — — — (239 ) Foreign currency transaction gains (losses) on hedged items — — 240 — — — — Credit derivatives: (1) Amount of gains (losses) deferred in AOCI N/A N/A N/A N/A N/A N/A — Amount of gains (losses) reclassified from AOCI into income — — — — — — — Subtotal 9 — 22 — — — (598 ) Gain (Loss) on Derivatives Not Designated or Not Qualifying as Hedging Instruments: Interest rate derivatives (1) 4 — (341 ) — — — N/A Foreign currency exchange rate derivatives (1) — — 180 — — — N/A Credit derivatives — purchased (1) — — 12 — — — N/A Credit derivatives — written (1) — — (55 ) — — — N/A Equity derivatives (1) 1 — (101 ) (15 ) — — N/A Foreign currency transaction gains (losses) on hedged items — — (58 ) — — — N/A Subtotal 5 — (363 ) (15 ) — — N/A Earned income on derivatives 176 — 166 4 (52 ) — — Embedded derivatives (2) N/A N/A 539 — N/A N/A N/A Total $ 190 $ — $ 365 $ (11 ) $ (52 ) $ — $ (598 ) __________________ (1) Excludes earned income on derivatives. (2) The valuation of guaranteed minimum benefits includes a nonperformance risk adjustment. The amounts included in net derivative gains (losses) in connection with this adjustment were $0 and ($11) million for the three months and six months ended June 30, 2019 , respectively, and $0 and ($21) million for the three months and six months ended June 30, 2018 , respectively. |
Net derivatives gains (losses) recognized on fair value derivatives and the related hedged items | The following table presents the balance sheet classification, carrying amount and cumulative fair value hedging adjustments for items designated and qualifying as hedged items in fair value hedges: June 30, 2019 Balance Sheet Line Item Carrying Amount of the Cumulative Amount (In millions) Fixed maturity securities AFS $ 257 $ (1 ) Mortgage loans $ 1,074 $ 6 Future policy benefits $ (4,286 ) $ (873 ) Policyholder account balances $ (74 ) $ — __________________ (1) Includes ($1) million of hedging adjustments on discontinued hedging relationships. |
Schedule of estimated fair value, maximum amount of future payments and weighted average years to maturity of written credit default swaps | The following table presents the estimated fair value, maximum amount of future payments and weighted average years to maturity of written credit default swaps at: June 30, 2019 December 31, 2018 Rating Agency Designation of Referenced Credit Obligations (1) Estimated Maximum Weighted Estimated Maximum Weighted (Dollars in millions) Aaa/Aa/A Single name credit default swaps (3) $ 2 $ 154 1.5 $ 2 $ 154 2.0 Credit default swaps referencing indices 38 2,428 2.4 27 2,079 2.5 Subtotal 40 2,582 2.4 29 2,233 2.5 Baa Single name credit default swaps (3) 2 222 1.4 1 277 1.6 Credit default swaps referencing indices 121 5,853 5.2 20 5,124 5.2 Subtotal 123 6,075 5.0 21 5,401 5.0 Ba Single name credit default swaps (3) — 10 1.0 — 10 1.5 Credit default swaps referencing indices — — — — — — Subtotal — 10 1.0 — 10 1.5 B Single name credit default swaps (3) — — — — — — Credit default swaps referencing indices 16 220 5.0 4 220 5.0 Subtotal 16 220 5.0 4 220 5.0 Total $ 179 $ 8,887 4.3 $ 54 $ 7,864 4.3 __________________ (1) The rating agency designations are based on availability and the midpoint of the applicable ratings among Moody’s Investors Service (“Moody’s”), S &P Global Ratings (“ S&P”) and Fitch Ratings. If no rating is available from a rating agency, then an internally developed rating is used. (2) The weighted average years to maturity of the credit default swaps is calculated based on weighted average gross notional amounts. (3) Single name credit default swaps may be referenced to the credit of corporations, foreign governments, or municipals. |
Estimated Fair Value of Derivative Assets and Liabilities after Master Netting Agreements and Cash Collateral | The estimated fair values of the Company’s net derivative assets and net derivative liabilities after the application of master netting agreements and collateral were as follows at: June 30, 2019 December 31, 2018 Derivatives Subject to a Master Netting Arrangement or a Similar Arrangement Assets Liabilities Assets Liabilities (In millions) Gross estimated fair value of derivatives: OTC-bilateral (1) $ 8,383 $ 1,940 $ 7,255 $ 2,166 OTC-cleared (1) 146 14 52 24 Exchange-traded 1 7 1 7 Total gross estimated fair value of derivatives presented on the interim condensed consolidated balance sheets (1) 8,530 1,961 7,308 2,197 Gross amounts not offset on the interim condensed consolidated balance sheets: Gross estimated fair value of derivatives: (2) OTC-bilateral (1,845 ) (1,845 ) (1,988 ) (1,988 ) OTC-cleared (5 ) (5 ) (20 ) (20 ) Exchange-traded — — — — Cash collateral: (3), (4) OTC-bilateral (3,711 ) — (4,000 ) — OTC-cleared (136 ) — (26 ) — Exchange-traded — — — — Securities collateral: (5) OTC-bilateral (2,689 ) (95 ) (1,136 ) (178 ) OTC-cleared — (9 ) — (4 ) Exchange-traded — (7 ) — (7 ) Net amount after application of master netting agreements and collateral $ 144 $ — $ 138 $ — __________________ (1) At June 30, 2019 and December 31, 2018 , derivative assets included income or (expense) accruals reported in accrued investment income or in other liabilities of $88 million and $90 million , respectively, and derivative liabilities included (income) or expense accruals reported in accrued investment income or in other liabilities of $0 and ($22) million , respectively. (2) Estimated fair value of derivatives is limited to the amount that is subject to set-off and includes income or expense accruals. (3) Cash collateral received by the Company for OTC-bilateral and OTC-cleared derivatives is included in cash and cash equivalents, short-term investments or in fixed maturity securities AFS, and the obligation to return it is included in payables for collateral under securities loaned and other transactions on the balance sheet. (4) The receivable for the return of cash collateral provided by the Company is inclusive of initial margin on exchange-traded and OTC-cleared derivatives and is included in premiums, reinsurance and other receivables on the balance sheet. The amount of cash collateral offset in the table above is limited to the net estimated fair value of derivatives after application of netting agreements. At June 30, 2019 and December 31, 2018 , the Company received excess cash collateral of $103 million and $95 million , respectively, and provided excess cash collateral of $0 and $1 million , respectively, which is not included in the table above due to the foregoing limitation. (5) Securities collateral received by the Company is held in separate custodial accounts and is not recorded on the balance sheet. Subject to certain constraints, the Company is permitted by contract to sell or re-pledge this collateral, but at June 30, 2019 , none of the collateral had been sold or re-pledged. Securities collateral pledged by the Company is reported in fixed maturity securities AFS on the balance sheet. Subject to certain constraints, the counterparties are permitted by contract to sell or re-pledge this collateral. The amount of securities collateral offset in the table above is limited to the net estimated fair value of derivatives after application of netting agreements and cash collateral. At June 30, 2019 and December 31, 2018 , the Company received excess securities collateral with an estimated fair value of $74 million and $28 million , respectively, for its OTC-bilateral derivatives, which are not included in the table above due to the foregoing limitation. At June 30, 2019 and December 31, 2018 , the Company provided excess securities collateral with an estimated fair value of $42 million and $94 million , respectively, for its OTC-bilateral derivatives, and $295 million and $231 million , respectively, for its OTC-cleared derivatives, and $81 million and $52 million , respectively, for its exchange-traded derivatives, which are not included in the table above due to the foregoing limitation. |
Estimated Fair Value of Derivative Assets and Liabilities after Master Netting Agreements and Cash Collateral | The estimated fair values of the Company’s net derivative assets and net derivative liabilities after the application of master netting agreements and collateral were as follows at: June 30, 2019 December 31, 2018 Derivatives Subject to a Master Netting Arrangement or a Similar Arrangement Assets Liabilities Assets Liabilities (In millions) Gross estimated fair value of derivatives: OTC-bilateral (1) $ 8,383 $ 1,940 $ 7,255 $ 2,166 OTC-cleared (1) 146 14 52 24 Exchange-traded 1 7 1 7 Total gross estimated fair value of derivatives presented on the interim condensed consolidated balance sheets (1) 8,530 1,961 7,308 2,197 Gross amounts not offset on the interim condensed consolidated balance sheets: Gross estimated fair value of derivatives: (2) OTC-bilateral (1,845 ) (1,845 ) (1,988 ) (1,988 ) OTC-cleared (5 ) (5 ) (20 ) (20 ) Exchange-traded — — — — Cash collateral: (3), (4) OTC-bilateral (3,711 ) — (4,000 ) — OTC-cleared (136 ) — (26 ) — Exchange-traded — — — — Securities collateral: (5) OTC-bilateral (2,689 ) (95 ) (1,136 ) (178 ) OTC-cleared — (9 ) — (4 ) Exchange-traded — (7 ) — (7 ) Net amount after application of master netting agreements and collateral $ 144 $ — $ 138 $ — __________________ (1) At June 30, 2019 and December 31, 2018 , derivative assets included income or (expense) accruals reported in accrued investment income or in other liabilities of $88 million and $90 million , respectively, and derivative liabilities included (income) or expense accruals reported in accrued investment income or in other liabilities of $0 and ($22) million , respectively. (2) Estimated fair value of derivatives is limited to the amount that is subject to set-off and includes income or expense accruals. (3) Cash collateral received by the Company for OTC-bilateral and OTC-cleared derivatives is included in cash and cash equivalents, short-term investments or in fixed maturity securities AFS, and the obligation to return it is included in payables for collateral under securities loaned and other transactions on the balance sheet. (4) The receivable for the return of cash collateral provided by the Company is inclusive of initial margin on exchange-traded and OTC-cleared derivatives and is included in premiums, reinsurance and other receivables on the balance sheet. The amount of cash collateral offset in the table above is limited to the net estimated fair value of derivatives after application of netting agreements. At June 30, 2019 and December 31, 2018 , the Company received excess cash collateral of $103 million and $95 million , respectively, and provided excess cash collateral of $0 and $1 million , respectively, which is not included in the table above due to the foregoing limitation. (5) Securities collateral received by the Company is held in separate custodial accounts and is not recorded on the balance sheet. Subject to certain constraints, the Company is permitted by contract to sell or re-pledge this collateral, but at June 30, 2019 , none of the collateral had been sold or re-pledged. Securities collateral pledged by the Company is reported in fixed maturity securities AFS on the balance sheet. Subject to certain constraints, the counterparties are permitted by contract to sell or re-pledge this collateral. The amount of securities collateral offset in the table above is limited to the net estimated fair value of derivatives after application of netting agreements and cash collateral. At June 30, 2019 and December 31, 2018 , the Company received excess securities collateral with an estimated fair value of $74 million and $28 million , respectively, for its OTC-bilateral derivatives, which are not included in the table above due to the foregoing limitation. At June 30, 2019 and December 31, 2018 , the Company provided excess securities collateral with an estimated fair value of $42 million and $94 million , respectively, for its OTC-bilateral derivatives, and $295 million and $231 million , respectively, for its OTC-cleared derivatives, and $81 million and $52 million , respectively, for its exchange-traded derivatives, which are not included in the table above due to the foregoing limitation. |
Derivative Instruments, Gain (Loss) [Line Items] | |
Schedule of Derivative Instruments | The following table presents the estimated fair value of the Company’s OTC-bilateral derivatives that were in a net liability position after considering the effect of netting agreements, together with the estimated fair value and balance sheet location of the collateral pledged. OTC-bilateral derivatives that are not subject to collateral agreements are excluded from this table. June 30, 2019 December 31, 2018 Derivatives Subject to Financial Strength- Contingent Provisions Derivatives Not Subject to Financial Strength- Contingent Provisions Total Derivatives Subject to Financial Strength- Contingent Provisions Derivatives Not Subject to Financial Strength- Contingent Provisions Total (In millions) Estimated Fair Value of Derivatives in a Net Liability Position (1) $ 95 $ — $ 95 $ 178 $ — $ 178 Estimated Fair Value of Collateral Provided: Fixed maturity securities AFS $ 137 $ — $ 137 $ 187 $ — $ 187 Cash $ — $ — $ — $ 1 $ — $ 1 __________________ (1) After taking into consideration the existence of netting agreements. |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | 6. Derivatives Accounting for Derivatives Freestanding Derivatives Freestanding derivatives are carried on the Company’s balance sheet either as assets within other invested assets or as liabilities within other liabilities at estimated fair value. The Company does not offset the estimated fair value amounts recognized for derivatives executed with the same counterparty under the same master netting agreement. Accruals on derivatives are generally recorded in accrued investment income or within other liabilities. However, accruals that are not scheduled to settle within one year are included with the derivative’s carrying value in other invested assets or other liabilities. If a derivative is not designated as an accounting hedge or its use in managing risk does not qualify for hedge accounting, changes in the estimated fair value of the derivative are reported in net derivative gains (losses) except as follows: Statement of Operations Presentation: Derivative: Policyholder benefits and claims • Economic hedges of variable annuity guarantees included in future policy benefits Net investment income • Economic hedges of equity method investments in joint ventures Hedge Accounting To qualify for hedge accounting, at the inception of the hedging relationship, the Company formally documents its risk management objective and strategy for undertaking the hedging transaction, as well as its designation of the hedge. Hedge designation and financial statement presentation of changes in estimated fair value of the hedging derivatives are as follows: • Fair value hedge - a hedge of the estimated fair value of a recognized asset or liability - in the same line item as the earnings effect of the hedged item. The carrying value of the hedged recognized asset or liability is adjusted for changes in its estimated fair value due to the hedged risk. • Cash flow hedge - a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability - in OCI and reclassified into the statement of operations when the Company’s earnings are affected by the variability in cash flows of the hedged item. The changes in estimated fair values of the hedging derivatives are exclusive of any accruals that are separately reported on the statement of operations within interest income or interest expense to match the location of the hedged item. In its hedge documentation, the Company sets forth how the hedging instrument is expected to hedge the designated risks related to the hedged item and sets forth the method that will be used to retrospectively and prospectively assess the hedging instrument’s effectiveness. A derivative designated as a hedging instrument must be assessed as being highly effective in offsetting the designated risk of the hedged item. Hedge effectiveness is formally assessed at inception and at least quarterly throughout the life of the designated hedging relationship. Assessments of hedge effectiveness are also subject to interpretation and estimation and different interpretations or estimates may have a material effect on the amount reported in net income. The Company discontinues hedge accounting prospectively when: (i) it is determined that the derivative is no longer highly effective in offsetting changes in the estimated fair value or cash flows of a hedged item; (ii) the derivative expires, is sold, terminated, or exercised; (iii) it is no longer probable that the hedged forecasted transaction will occur; or (iv) the derivative is de-designated as a hedging instrument. When hedge accounting is discontinued because it is determined that the derivative is not highly effective in offsetting changes in the estimated fair value or cash flows of a hedged item, the derivative continues to be carried on the balance sheet at its estimated fair value, with changes in estimated fair value recognized in net derivative gains (losses). The carrying value of the hedged recognized asset or liability under a fair value hedge is no longer adjusted for changes in its estimated fair value due to the hedged risk, and the cumulative adjustment to its carrying value is amortized into income over the remaining life of the hedged item. Provided the hedged forecasted transaction is still probable of occurring, the changes in estimated fair value of derivatives recorded in OCI related to discontinued cash flow hedges are released into the statement of operations when the Company’s earnings are affected by the variability in cash flows of the hedged item. When hedge accounting is discontinued because it is no longer probable that the forecasted transactions will occur on the anticipated date or within two months of that date, the derivative continues to be carried on the balance sheet at its estimated fair value, with changes in estimated fair value recognized currently in net derivative gains (losses). Deferred gains and losses of a derivative recorded in OCI pursuant to the discontinued cash flow hedge of a forecasted transaction that is no longer probable of occurring are recognized immediately in net investment gains (losses). In all other situations in which hedge accounting is discontinued, the derivative is carried at its estimated fair value on the balance sheet, with changes in its estimated fair value recognized in the current period as net derivative gains (losses). Embedded Derivatives The Company sold variable annuities and issues certain insurance products and investment contracts and is a party to certain reinsurance agreements that have embedded derivatives. The Company assesses each identified embedded derivative to determine whether it is required to be bifurcated. The embedded derivative is bifurcated from the host contract and accounted for as a freestanding derivative if: • the combined instrument is not accounted for in its entirety at estimated fair value with changes in estimated fair value recorded in earnings; • the terms of the embedded derivative are not clearly and closely related to the economic characteristics of the host contract; and • a separate instrument with the same terms as the embedded derivative would qualify as a derivative instrument. Such embedded derivatives are carried on the balance sheet at estimated fair value with the host contract and changes in their estimated fair value are generally reported in net derivative gains (losses). If the Company is unable to properly identify and measure an embedded derivative for separation from its host contract, the entire contract is carried on the balance sheet at estimated fair value, with changes in estimated fair value recognized in the current period in net investment gains (losses) or net investment income. Additionally, the Company may elect to carry an entire contract on the balance sheet at estimated fair value, with changes in estimated fair value recognized in the current period in net investment gains (losses) or net investment income if that contract contains an embedded derivative that requires bifurcation. At inception, the Company attributes to the embedded derivative a portion of the projected future guarantee fees to be collected from the policyholder equal to the present value of projected future guaranteed benefits. Any additional fees represent “excess” fees and are reported in universal life and investment-type product policy fees. See Note 7 for information about the fair value hierarchy for derivatives. Derivative Strategies The Company is exposed to various risks relating to its ongoing business operations, including interest rate, foreign currency exchange rate, credit and equity market. The Company uses a variety of strategies to manage these risks, including the use of derivatives. Derivatives are financial instruments with values derived from interest rates, foreign currency exchange rates, credit spreads and/or other financial indices. Derivatives may be exchange-traded or contracted in the over-the-counter (“OTC”) market. Certain of the Company’s OTC derivatives are cleared and settled through central clearing counterparties (“OTC-cleared”), while others are bilateral contracts between two counterparties (“OTC-bilateral”). The types of derivatives the Company uses include swaps, forwards, futures and option contracts. To a lesser extent, the Company uses credit default swaps and structured interest rate swaps to synthetically replicate investment risks and returns which are not readily available in the cash markets. Interest Rate Derivatives The Company uses a variety of interest rate derivatives to reduce its exposure to changes in interest rates, including interest rate swaps, interest rate total return swaps, caps, floors, swaptions, futures and forwards. Interest rate swaps are used by the Company primarily to reduce market risks from changes in interest rates and to alter interest rate exposure arising from mismatches between assets and liabilities (duration mismatches). In an interest rate swap, the Company agrees with another party to exchange, at specified intervals, the difference between fixed rate and floating rate interest amounts as calculated by reference to an agreed notional amount. The Company utilizes interest rate swaps in fair value, cash flow and nonqualifying hedging relationships. The Company uses structured interest rate swaps to synthetically create investments that are either more expensive to acquire or otherwise unavailable in the cash markets. These transactions are a combination of a derivative and a cash instrument such as a U.S. government and agency, or other fixed maturity securities AFS. Structured interest rate swaps are included in interest rate swaps and are not designated as hedging instruments. Interest rate total return swaps are swaps whereby the Company agrees with another party to exchange, at specified intervals, the difference between the economic risk and reward of an asset or a market index and a benchmark interest rate, calculated by reference to an agreed notional amount. No cash is exchanged at the outset of the contract. Cash is paid and received over the life of the contract based on the terms of the swap. These transactions are entered into pursuant to master agreements that provide for a single net payment to be made by the counterparty at each due date. Interest rate total return swaps are used by the Company to reduce market risks from changes in interest rates and to alter interest rate exposure arising from mismatches between assets and liabilities (duration mismatches). The Company utilizes interest rate total return swaps in nonqualifying hedging relationships. The Company purchases interest rate caps primarily to protect its floating rate liabilities against rises in interest rates above a specified level, and against interest rate exposure arising from mismatches between assets and liabilities, and interest rate floors primarily to protect its minimum rate guarantee liabilities against declines in interest rates below a specified level. In certain instances, the Company locks in the economic impact of existing purchased caps and floors by entering into offsetting written caps and floors. The Company utilizes interest rate caps and floors in nonqualifying hedging relationships. In exchange-traded interest rate (Treasury and swap) futures transactions, the Company agrees to purchase or sell a specified number of contracts, the value of which is determined by the different classes of interest rate securities, to post variation margin on a daily basis in an amount equal to the difference in the daily market values of those contracts and to pledge initial margin based on futures exchange requirements. The Company enters into exchange-traded futures with regulated futures commission merchants that are members of the exchange. Exchange-traded interest rate (Treasury and swap) futures are used primarily to hedge mismatches between the duration of assets in a portfolio and the duration of liabilities supported by those assets, to hedge against changes in value of securities the Company owns or anticipates acquiring, to hedge against changes in interest rates on anticipated liability issuances by replicating Treasury or swap curve performance, and to hedge minimum guarantees embedded in certain variable annuity products offered by the Company. The Company utilizes exchange-traded interest rate futures in nonqualifying hedging relationships. Swaptions are used by the Company to hedge interest rate risk associated with the Company’s long-term liabilities and invested assets. A swaption is an option to enter into a swap with a forward starting effective date. In certain instances, the Company locks in the economic impact of existing purchased swaptions by entering into offsetting written swaptions. The Company pays a premium for purchased swaptions and receives a premium for written swaptions. The Company utilizes swaptions in nonqualifying hedging relationships. Swaptions are included in interest rate options. The Company enters into interest rate forwards to buy and sell securities. The price is agreed upon at the time of the contract and payment for such a contract is made at a specified future date. The Company utilizes interest rate forwards in cash flow and nonqualifying hedging relationships. A synthetic guaranteed interest contract (“GIC”) is a contract that simulates the performance of a traditional GIC through the use of financial instruments. Under a synthetic GIC, the contractholder owns the underlying assets. The Company guarantees a rate of return on those assets for a premium. Synthetic GICs are not designated as hedging instruments. Foreign Currency Exchange Rate Derivatives The Company uses foreign currency exchange rate derivatives, including foreign currency swaps and foreign currency forwards, to reduce the risk from fluctuations in foreign currency exchange rates associated with its assets and liabilities denominated in foreign currencies. In a foreign currency swap transaction, the Company agrees with another party to exchange, at specified intervals, the difference between one currency and another at a fixed exchange rate, generally set at inception, calculated by reference to an agreed upon notional amount. The notional amount of each currency is exchanged at the inception and termination of the currency swap by each party. The Company utilizes foreign currency swaps in fair value, cash flow and nonqualifying hedging relationships. In a foreign currency forward transaction, the Company agrees with another party to deliver a specified amount of an identified currency at a specified future date. The price is agreed upon at the time of the contract and payment for such a contract is made at the specified future date. The Company utilizes foreign currency forwards in nonqualifying hedging relationships. Credit Derivatives The Company enters into purchased credit default swaps to hedge against credit-related changes in the value of its investments. In a credit default swap transaction, the Company agrees with another party to pay, at specified intervals, a premium to hedge credit risk. If a credit event occurs, as defined by the contract, the contract may be cash settled or it may be settled gross by the delivery of par quantities of the referenced investment equal to the specified swap notional amount in exchange for the payment of cash amounts by the counterparty equal to the par value of the investment surrendered. Credit events vary by type of issuer but typically include bankruptcy, failure to pay debt obligations and involuntary restructuring for corporate obligors, as well as repudiation, moratorium or governmental intervention for sovereign obligors. In each case, payout on a credit default swap is triggered only after the Credit Derivatives Determinations Committee of the International Swaps and Derivatives Association, Inc. (“ISDA”) deems that a credit event has occurred. The Company utilizes credit default swaps in nonqualifying hedging relationships. The Company enters into written credit default swaps to synthetically create credit investments that are either more expensive to acquire or otherwise unavailable in the cash markets. These transactions are a combination of a derivative and one or more cash instruments, such as U.S. government and agency, or other fixed maturity securities AFS. These credit default swaps are not designated as hedging instruments. The Company enters into forwards to lock in the price to be paid for forward purchases of certain securities. The price is agreed upon at the time of the contract and payment for the contract is made at a specified future date. When the primary purpose of entering into these transactions is to hedge against the risk of changes in purchase price due to changes in credit spreads, the Company designates these transactions as credit forwards. The Company utilizes credit forwards in cash flow hedging relationships. Equity Derivatives The Company uses a variety of equity derivatives to reduce its exposure to equity market risk, including equity index options, equity variance swaps, exchange-traded equity futures and equity total return swaps. Equity index options are used by the Company primarily to hedge minimum guarantees embedded in certain variable annuity products offered by the Company. To hedge against adverse changes in equity indices, the Company enters into contracts to sell the underlying equity index within a limited time at a contracted price. The contracts will be net settled in cash based on differentials in the indices at the time of exercise and the strike price. Certain of these contracts may also contain settlement provisions linked to interest rates. In certain instances, the Company may enter into a combination of transactions to hedge adverse changes in equity indices within a pre-determined range through the purchase and sale of options. The Company utilizes equity index options in nonqualifying hedging relationships. Equity variance swaps are used by the Company primarily to hedge minimum guarantees embedded in certain variable annuity products offered by the Company. In an equity variance swap, the Company agrees with another party to exchange amounts in the future, based on changes in equity volatility over a defined period. The Company utilizes equity variance swaps in nonqualifying hedging relationships. In exchange-traded equity futures transactions, the Company agrees to purchase or sell a specified number of contracts, the value of which is determined by the different classes of equity securities, to post variation margin on a daily basis in an amount equal to the difference in the daily market values of those contracts and to pledge initial margin based on futures exchange requirements. The Company enters into exchange-traded futures with regulated futures commission merchants that are members of the exchange. Exchange-traded equity futures are used primarily to hedge minimum guarantees embedded in certain variable annuity products offered by the Company. The Company utilizes exchange-traded equity futures in nonqualifying hedging relationships. In an equity total return swap, the Company agrees with another party to exchange, at specified intervals, the difference between the economic risk and reward of an asset or a market index and a benchmark interest rate, calculated by reference to an agreed notional amount. No cash is exchanged at the outset of the contract. Cash is paid and received over the life of the contract based on the terms of the swap. The Company uses equity total return swaps to hedge its equity market guarantees in certain of its insurance products. Equity total return swaps can be used as hedges or to synthetically create investments. The Company utilizes equity total return swaps in nonqualifying hedging relationships. Primary Risks Managed by Derivatives The following table presents the primary underlying risk exposure, gross notional amount, and estimated fair value of the Company’s derivatives, excluding embedded derivatives, held at: June 30, 2019 December 31, 2018 Primary Underlying Risk Exposure Gross Estimated Fair Value Gross Estimated Fair Value Assets Liabilities Assets Liabilities (In millions) Derivatives Designated as Hedging Instruments: Fair value hedges: Interest rate swaps Interest rate $ 2,315 $ 2,590 $ 3 $ 2,446 $ 2,197 $ 2 Foreign currency swaps Foreign currency exchange rate 1,140 36 4 1,191 49 — Subtotal 3,455 2,626 7 3,637 2,246 2 Cash flow hedges: Interest rate swaps Interest rate 3,457 164 8 3,181 139 1 Interest rate forwards Interest rate 2,855 39 19 3,023 — 216 Foreign currency swaps Foreign currency exchange rate 26,004 1,330 1,163 26,239 1,218 1,318 Subtotal 32,316 1,533 1,190 32,443 1,357 1,535 Total qualifying hedges 35,771 4,159 1,197 36,080 3,603 1,537 Derivatives Not Designated or Not Qualifying as Hedging Instruments: Interest rate swaps Interest rate 35,384 2,030 109 36,238 1,507 85 Interest rate floors Interest rate 12,701 186 — 12,701 102 — Interest rate caps Interest rate 52,388 30 2 54,576 154 1 Interest rate futures Interest rate 448 — — 794 — 1 Interest rate options Interest rate 28,430 605 — 24,340 185 — Interest rate total return swaps Interest rate 1,048 65 — 1,048 33 2 Synthetic GICs Interest rate 16,985 — — 18,006 — — Foreign currency swaps Foreign currency exchange rate 6,326 642 93 5,986 700 79 Foreign currency forwards Foreign currency exchange rate 662 11 7 943 15 14 Credit default swaps — purchased Credit 843 16 3 858 24 4 Credit default swaps — written Credit 8,887 180 1 7,864 67 13 Equity futures Equity market 1,707 1 7 1,006 1 6 Equity index options Equity market 24,158 482 442 23,162 706 396 Equity variance swaps Equity market 1,946 35 88 1,946 32 81 Equity total return swaps Equity market 724 — 12 886 89 — Total non-designated or nonqualifying derivatives 192,637 4,283 764 190,354 3,615 682 Total $ 228,408 $ 8,442 $ 1,961 $ 226,434 $ 7,218 $ 2,219 Based on gross notional amounts, a substantial portion of the Company’s derivatives was not designated or did not qualify as part of a hedging relationship at both June 30, 2019 and December 31, 2018 . The Company’s use of derivatives includes (i) derivatives that serve as macro hedges of the Company’s exposure to various risks and that generally do not qualify for hedge accounting due to the criteria required under the portfolio hedging rules; (ii) derivatives that economically hedge insurance liabilities that contain mortality or morbidity risk and that generally do not qualify for hedge accounting because the lack of these risks in the derivatives cannot support an expectation of a highly effective hedging relationship; (iii) derivatives that economically hedge embedded derivatives that do not qualify for hedge accounting because the changes in estimated fair value of the embedded derivatives are already recorded in net income; and (iv) written credit default swaps and interest rate swaps that are used to synthetically create investments and that do not qualify for hedge accounting because they do not involve a hedging relationship. For these nonqualified derivatives, changes in market factors can lead to the recognition of fair value changes on the statement of operations without an offsetting gain or loss recognized in earnings for the item being hedged. The Effects of Derivatives on the Interim Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) The following table presents the consolidated financial statement location and amount of gain (loss) recognized on fair value, cash flow, nonqualifying hedging relationships and embedded derivatives: Three Months Ended June 30, 2019 Net Investment Income Net Investment Gains (Losses) Net Derivative Gains (Losses) Policyholder Benefits and Claims Interest Credited to Policyholder Account Balances Other Expenses OCI (In millions) Gain (Loss) on Fair Value Hedges: Interest rate derivatives: Derivatives designated as hedging instruments (1) $ (1 ) $ — $ — $ 205 $ — $ — N/A Hedged items 2 — — (206 ) — — N/A Foreign currency exchange rate derivatives: Derivatives designated as hedging instruments (1) 9 — — — — — N/A Hedged items (10 ) — — — — — N/A Amount excluded from the assessment of hedge effectiveness — — — — — — N/A Subtotal — — — (1 ) — — N/A Gain (Loss) on Cash Flow Hedges: Interest rate derivatives: (1) Amount of gains (losses) deferred in AOCI N/A N/A N/A N/A N/A N/A $ 351 Amount of gains (losses) reclassified from AOCI into income 6 5 — — — — (11 ) Foreign currency exchange rate derivatives: (1) Amount of gains (losses) deferred in AOCI N/A N/A N/A N/A N/A N/A 172 Amount of gains (losses) reclassified from AOCI into income (1 ) 34 — — — — (33 ) Foreign currency transaction gains (losses) on hedged items — (37 ) — — — — — Credit derivatives: (1) Amount of gains (losses) deferred in AOCI N/A N/A N/A N/A N/A N/A — Amount of gains (losses) reclassified from AOCI into income — — — — — — — Subtotal 5 2 — — — — 479 Gain (Loss) on Derivatives Not Designated or Not Qualifying as Hedging Instruments: Interest rate derivatives (1) (1 ) — 607 — — — N/A Foreign currency exchange rate derivatives (1) — — 77 — — — N/A Credit derivatives — purchased (1) — — (2 ) — — — N/A Credit derivatives — written (1) — — 36 — — — N/A Equity derivatives (1) — — (147 ) (21 ) — — N/A Foreign currency transaction gains (losses) on hedged items — — (106 ) — — — N/A Subtotal (1 ) — 465 (21 ) — — N/A Earned income on derivatives 64 — 68 32 (36 ) — — Embedded derivatives (2) N/A N/A (325 ) — N/A N/A N/A Total $ 68 $ 2 $ 208 $ 10 $ (36 ) $ — $ 479 Three Months Ended June 30, 2018 Net Investment Income Net Investment Gains (Losses) Net Derivative Gains (Losses) Policyholder Benefits and Claims Interest Credited to Policyholder Account Balances Other Expenses OCI (In millions) Gain (Loss) on Fair Value Hedges: Interest rate derivatives: Derivatives designated as hedging instruments (1) $ — $ — $ (68 ) $ — $ — $ — N/A Hedged items — — 70 — — — N/A Foreign currency exchange rate derivatives: Derivatives designated as hedging instruments (1) — — 54 — — — N/A Hedged items — — (55 ) — — — N/A Amount excluded from the assessment of hedge effectiveness — — — — — — N/A Subtotal — — 1 — — — N/A Gain (Loss) on Cash Flow Hedges: Interest rate derivatives: (1) Amount of gains (losses) deferred in AOCI N/A N/A N/A N/A N/A N/A $ (58 ) Amount of gains (losses) reclassified from AOCI into income 6 — — — — — (6 ) Foreign currency exchange rate derivatives: (1) Amount of gains (losses) deferred in AOCI N/A N/A N/A N/A N/A N/A 235 Amount of gains (losses) reclassified from AOCI into income (1 ) — (398 ) — — — 399 Foreign currency transaction gains (losses) on hedged items — — 398 — — — — Credit derivatives: (1) Amount of gains (losses) deferred in AOCI N/A N/A N/A N/A N/A N/A — Amount of gains (losses) reclassified from AOCI into income — — — — — — — Subtotal 5 — — — — — 570 Gain (Loss) on Derivatives Not Designated or Not Qualifying as Hedging Instruments: Interest rate derivatives (1) — — (85 ) — — — N/A Foreign currency exchange rate derivatives (1) — — 394 — — — N/A Credit derivatives — purchased (1) — — 13 — — — N/A Credit derivatives — written (1) — — (27 ) — — — N/A Equity derivatives (1) — — (111 ) (16 ) — — N/A Foreign currency transaction gains (losses) on hedged items — — (170 ) — — — N/A Subtotal — — 14 (16 ) — — N/A Earned income on derivatives 99 — 84 2 (29 ) — — Embedded derivatives (2) N/A N/A 206 — N/A N/A N/A Total $ 104 $ — $ 305 $ (14 ) $ (29 ) $ — $ 570 Six Months Ended June 30, 2019 Net Investment Income Net Investment Gains (Losses) Net Derivative Gains (Losses) Policyholder Benefits and Claims Interest Credited to Policyholder Account Balances Other Expenses OCI (In millions) Gain (Loss) on Fair Value Hedges: Interest rate derivatives: Derivatives designated as hedging instruments (1) $ (4 ) $ — $ — $ 332 $ — $ — N/A Hedged items 5 — — (334 ) — — N/A Foreign currency exchange rate derivatives: Derivatives designated as hedging instruments (1) (20 ) — — — — — N/A Hedged items 18 — — — — — N/A Amount excluded from the assessment of hedge effectiveness — — — — — — N/A Subtotal (1 ) — — (2 ) — — N/A Gain (Loss) on Cash Flow Hedges: Interest rate derivatives: (1) Amount of gains (losses) deferred in AOCI N/A N/A N/A N/A N/A N/A $ 593 Amount of gains (losses) reclassified from AOCI into income 11 (1 ) — — — — (10 ) Foreign currency exchange rate derivatives: (1) Amount of gains (losses) deferred in AOCI N/A N/A N/A N/A N/A N/A 46 Amount of gains (losses) reclassified from AOCI into income (2 ) 81 — — — — (79 ) Foreign currency transaction gains (losses) on hedged items — (93 ) — — — — — Credit derivatives: (1) Amount of gains (losses) deferred in AOCI N/A N/A N/A N/A N/A N/A — Amount of gains (losses) reclassified from AOCI into income — — — — — — — Subtotal 9 (13 ) — — — — 550 Gain (Loss) on Derivatives Not Designated or Not Qualifying as Hedging Instruments: Interest rate derivatives (1) (2 ) — 748 — — — N/A Foreign currency exchange rate derivatives (1) — — 16 — — — N/A Credit derivatives — purchased (1) — — (12 ) — — — N/A Credit derivatives — written (1) — — 128 — — — N/A Equity derivatives (1) — — (629 ) (89 ) — — N/A Foreign currency transaction gains (losses) on hedged items — — (69 ) — — — N/A Subtotal (2 ) — 182 (89 ) — — N/A Earned income on derivatives 134 — 139 63 (68 ) — — Embedded derivatives (2) N/A N/A (423 ) — N/A N/A N/A Total $ 140 $ (13 ) $ (102 ) $ (28 ) $ (68 ) $ — $ 550 Six Months Ended June 30, 2018 Net Investment Income Net Investment Gains (Losses) Net Derivative Gains (Losses) Policyholder Benefits and Claims Interest Credited to Policyholder Account Balances Other Expenses OCI (In millions) Gain (Loss) on Fair Value Hedges: Interest rate derivatives: Derivatives designated as hedging instruments (1) $ — $ — $ (278 ) $ — $ — $ — N/A Hedged items — — 280 — — — N/A Foreign currency exchange rate derivatives: Derivatives designated as hedging instruments (1) — — 47 — — — N/A Hedged items — — (48 ) — — — N/A Amount excluded from the assessment of hedge effectiveness — — — — — — N/A Subtotal — — 1 — — — N/A Gain (Loss) on Cash Flow Hedges: Interest rate derivatives: (1) Amount of gains (losses) deferred in AOCI N/A N/A N/A N/A N/A N/A $ (335 ) Amount of gains (losses) reclassified from AOCI into income 10 — 20 — — — (30 ) Foreign currency exchange rate derivatives: (1) Amount of gains (losses) deferred in AOCI N/A N/A N/A N/A N/A N/A 6 Amount of gains (losses) reclassified from AOCI into income (1 ) — (238 ) — — — (239 ) Foreign currency transaction gains (losses) on hedged items — — 240 — — — — Credit derivatives: (1) Amount of gains (losses) deferred in AOCI N/A N/A N/A N/A N/A N/A — Amount of gains (losses) reclassified from AOCI into income — — — — — — — Subtotal 9 — 22 — — — (598 ) Gain (Loss) on Derivatives Not Designated or Not Qualifying as Hedging Instruments: Interest rate derivatives (1) 4 — (341 ) — — — N/A Foreign currency exchange rate derivatives (1) — — 180 — — — N/A Credit derivatives — purchased (1) — — 12 — — — N/A Credit derivatives — written (1) — — (55 ) — — — N/A Equity derivatives (1) 1 — (101 ) (15 ) — — N/A Foreign currency transaction gains (losses) on hedged items — — (58 ) — — — N/A Subtotal 5 — (363 ) (15 ) — — N/A Earned income on derivatives 176 — 166 4 (52 ) — — Embedded derivatives (2) N/A N/A 539 — N/A N/A N/A Total $ 190 $ — $ 365 $ (11 ) $ (52 ) $ — $ (598 ) __________________ (1) Excludes earned income on derivatives. (2) The valuation of guaranteed minimum benefits includes a nonperformance risk adjustment. The amounts included in net derivative gains (losses) in connection with this adjustment were $0 and ($11) million for the three months and six months ended June 30, 2019 , respectively, and $0 and ($21) million for the three months and six months ended June 30, 2018 , respectively. Fair Value Hedges The Company designates and accounts for the following as fair value hedges when they have met the requirements of fair value hedging: (i) interest rate swaps to convert fixed rate assets and liabilities to floating rate assets and liabilities and (ii) foreign currency swaps to hedge the foreign currency fair value exposure of foreign currency denominated assets and liabilities. The following table presents the balance sheet classification, carrying amount and cumulative fair value hedging adjustments for items designated and qualifying as hedged items in fair value hedges: June 30, 2019 Balance Sheet Line Item Carrying Amount of the Cumulative Amount (In millions) Fixed maturity securities AFS $ 257 $ (1 ) Mor |
Embedded Derivative Financial Instruments [Member] | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Schedule of Derivative Instruments | The following table presents the estimated fair value and balance sheet location of the Company’s embedded derivatives that have been separated from their host contracts at: Balance Sheet Location June 30, 2019 December 31, 2018 (In millions) Embedded derivatives within liability host contracts: Direct guaranteed minimum benefits Policyholder account balances $ 179 $ 178 Assumed guaranteed minimum benefits Policyholder account balances 3 3 Funds withheld on ceded reinsurance (including affiliated) Other liabilities 930 465 Fixed annuities with equity indexed returns Policyholder account balances 107 58 Embedded derivatives within liability host contracts $ 1,219 $ 704 |
Fair Value (Tables)
Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Recurring Fair Value Measurements | The assets and liabilities measured at estimated fair value on a recurring basis and their corresponding placement in the fair value hierarchy, including those items for which the Company has elected the FVO, are presented below at: June 30, 2019 Fair Value Hierarchy Level 1 Level 2 Level 3 Total (In millions) Assets Fixed maturity securities AFS: U.S. corporate $ — $ 53,609 $ 3,217 $ 56,826 U.S. government and agency 11,226 17,430 — 28,656 Foreign corporate — 24,512 4,433 28,945 RMBS 20 20,513 2,875 23,408 ABS — 9,126 326 9,452 Municipals — 7,366 7 7,373 CMBS — 5,561 41 5,602 Foreign government — 4,830 10 4,840 Total fixed maturity securities AFS 11,246 142,947 10,909 165,102 Equity securities 381 72 352 805 Short-term investments 230 784 113 1,127 Residential mortgage loans — FVO — — 262 262 Other investments — 1 268 269 Derivative assets: (1) Interest rate — 5,606 103 5,709 Foreign currency exchange rate — 2,019 — 2,019 Credit — 160 36 196 Equity market 1 473 44 518 Total derivative assets 1 8,258 183 8,442 Embedded derivatives within asset host contracts (2) — — — — Separate account assets (3) 23,370 95,870 932 120,172 Total assets (4) $ 35,228 $ 247,932 $ 13,019 $ 296,179 Liabilities Derivative liabilities: (1) Interest rate $ — $ 122 $ 19 $ 141 Foreign currency exchange rate — 1,264 3 1,267 Credit — 4 — 4 Equity market 7 454 88 549 Total derivative liabilities 7 1,844 110 1,961 Embedded derivatives within liability host contracts (2) — — 1,219 1,219 Separate account liabilities (3) 2 33 7 42 Total liabilities $ 9 $ 1,877 $ 1,336 $ 3,222 December 31, 2018 Fair Value Hierarchy Level 1 Level 2 Level 3 Total (In millions) Assets Fixed maturity securities AFS: U.S. corporate $ — $ 51,676 $ 3,126 $ 54,802 U.S. government and agency 12,310 17,851 — 30,161 Foreign corporate — 21,988 3,975 25,963 RMBS — 19,719 3,018 22,737 ABS — 8,072 455 8,527 Municipals — 6,947 — 6,947 CMBS — 5,376 68 5,444 Foreign government — 4,482 10 4,492 Total fixed maturity securities AFS 12,310 136,111 10,652 159,073 Equity securities 341 76 356 773 Short-term investments 698 783 25 1,506 Residential mortgage loans — FVO — — 299 299 Other investments — 1 215 216 Derivative assets: (1) Interest rate — 4,284 33 4,317 Foreign currency exchange rate — 1,982 — 1,982 Credit — 62 29 91 Equity market 1 776 51 828 Total derivative assets 1 7,104 113 7,218 Embedded derivatives within asset host contracts (2) — — — — Separate account assets (3) 20,558 89,348 944 110,850 Total assets (4) $ 33,908 $ 233,423 $ 12,604 $ 279,935 Liabilities Derivative liabilities: (1) Interest rate $ 1 $ 89 $ 218 $ 308 Foreign currency exchange rate — 1,410 1 1,411 Credit — 13 4 17 Equity market 6 395 82 483 Total derivative liabilities 7 1,907 305 2,219 Embedded derivatives within liability host contracts (2) — — 704 704 Separate account liabilities (3) 1 20 7 28 Total liabilities $ 8 $ 1,927 $ 1,016 $ 2,951 __________________ (1) Derivative assets are presented within other invested assets on the interim condensed consolidated balance sheets and derivative liabilities are presented within other liabilities on the interim condensed consolidated balance sheets. The amounts are presented gross in the tables above to reflect the presentation on the interim condensed consolidated balance sheets, but are presented net for purposes of the rollforward in the Fair Value Measurements Using Significant Unobservable Inputs (Level 3) tables. (2) Embedded derivatives within asset host contracts are presented within premiums, reinsurance and other receivables on the interim condensed consolidated balance sheets. Embedded derivatives within liability host contracts are presented within policyholder account balances and other liabilities on the interim condensed consolidated balance sheets. (3) Investment performance related to separate account assets is fully offset by corresponding amounts credited to contractholders whose liability is reflected within separate account liabilities. Separate account liabilities are set equal to the estimated fair value of separate account assets. Separate account liabilities presented in the tables above represent derivative liabilities. (4) Total assets included in the fair value hierarchy excluded other limited partnership interests that are measured at estimated fair value using the net asset value (“NAV”) per share (or its equivalent) practical expedient. At June 30, 2019 and December 31, 2018 , the estimated fair value of such investments was $105 million and $140 million , respectively. |
Fair Value Inputs, Quantitative Information | The following table presents certain quantitative information about the significant unobservable inputs used in the fair value measurement, and the sensitivity of the estimated fair value to changes in those inputs, for the more significant asset and liability classes measured at fair value on a recurring basis using significant unobservable inputs (Level 3) at: June 30, 2019 December 31, 2018 Impact of Valuation Significant Unobservable Inputs Range Weighted Average (1) Range Weighted Average (1) Fixed maturity securities AFS (3) U.S. corporate and foreign corporate • Matrix pricing • Offered quotes (4) 92 - 142 112 85 - 134 105 Increase • Market pricing • Quoted prices (4) 25 - 416 110 25 - 638 107 Increase RMBS • Market pricing • Quoted prices (4) — - 111 95 — - 106 94 Increase (5) ABS • Market pricing • Quoted prices (4) 9 - 102 98 10 - 101 97 Increase (5) Derivatives Interest rate • Present value techniques • Swap yield (6) 197 - 259 268 - 317 Increase (7) • Repurchase rates (8) (25) - 1 (5) - 6 Decrease (7) Foreign currency exchange rate • Present value techniques • Swap yield (6) (23) - (5) (20) - (5) Increase (7) Credit • Present value techniques • Credit spreads (9) 96 - 100 97 - 103 Decrease (7) • Consensus pricing • Offered quotes (10) Equity market • Present value techniques or option pricing models • Volatility (11) 16% - 23% 21% - 26% Increase (7) • Correlation (12) 10% - 30% 10% - 30% Embedded derivatives Direct and assumed guaranteed • Option pricing • Mortality rates: Ages 0 - 40 0.01% - 0.18% 0.01% - 0.18% Decrease (13) Ages 41 - 60 0.04% - 0.57% 0.04% - 0.57% Decrease (13) Ages 61 - 115 0.26% - 100% 0.26% - 100% Decrease (13) • Lapse rates: Durations 1 - 10 0.25% - 100% 0.25% - 100% Decrease (14) Durations 11 - 20 3% - 100% 3% - 100% Decrease (14) Durations 21 - 116 2.5% - 100% 2.5% - 100% Decrease (14) • Utilization rates 0% - 25% 0% - 25% Increase (15) • Withdrawal rates 0.25% - 10% 0.25% - 10% (16) • Long-term equity 16.50% - 22% 16.50% - 22% Increase (17) • Nonperformance risk 0.03% - 0.45% 0.05% - 0.59% Decrease (18) __________________ (1) The weighted average for fixed maturity securities AFS is determined based on the estimated fair value of the securities. (2) The impact of a decrease in input would have resulted in the opposite impact on estimated fair value. For embedded derivatives, changes to direct and assumed guaranteed minimum benefits are based on liability positions. (3) Significant increases (decreases) in expected default rates in isolation would have resulted in substantially lower (higher) valuations. (4) Range and weighted average are presented in accordance with the market convention for fixed maturity securities AFS of dollars per hundred dollars of par. (5) Changes in the assumptions used for the probability of default would have been accompanied by a directionally similar change in the assumption used for the loss severity and a directionally opposite change in the assumptions used for prepayment rates. (6) Ranges represent the rates across different yield curves and are presented in basis points. The swap yield curves are utilized among different types of derivatives to project cash flows, as well as to discount future cash flows to present value. Since this valuation methodology uses a range of inputs across a yield curve to value the derivative, presenting a range is more representative of the unobservable input used in the valuation. (7) Changes in estimated fair value are based on long U.S. dollar net asset positions and will be inversely impacted for short U.S. dollar net asset positions. (8) Ranges represent different repurchase rates utilized as components within the valuation methodology and are presented in basis points. (9) Represents the risk quoted in basis points of a credit default event on the underlying instrument. Credit derivatives with significant unobservable inputs are primarily comprised of written credit default swaps. (10) At both June 30, 2019 and December 31, 2018 , independent non-binding broker quotations were used in the determination of less than 1% of the total net derivative estimated fair value. (11) Ranges represent the underlying equity volatility quoted in percentage points. Since this valuation methodology uses a range of inputs across multiple volatility surfaces to value the derivative, presenting a range is more representative of the unobservable input used in the valuation. (12) Ranges represent the different correlation factors utilized as components within the valuation methodology. Presenting a range of correlation factors is more representative of the unobservable input used in the valuation. Increases (decreases) in correlation in isolation will increase (decrease) the significance of the change in valuations. (13) Mortality rates vary by age and by demographic characteristics such as gender. Mortality rate assumptions are based on company experience. A mortality improvement assumption is also applied. For any given contract, mortality rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. (14) Base lapse rates are adjusted at the contract level based on a comparison of the actuarially calculated guaranteed values and the current policyholder account value, as well as other factors, such as the applicability of any surrender charges. A dynamic lapse function reduces the base lapse rate when the guaranteed amount is greater than the account value as in the money contracts are less likely to lapse. Lapse rates are also generally assumed to be lower in periods when a surrender charge applies. For any given contract, lapse rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. (15) The utilization rate assumption estimates the percentage of contractholders with a GMIB or lifetime withdrawal benefit who will elect to utilize the benefit upon becoming eligible. The rates may vary by the type of guarantee, the amount by which the guaranteed amount is greater than the account value, the contract’s withdrawal history and by the age of the policyholder. For any given contract, utilization rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. (16) The withdrawal rate represents the percentage of account balance that any given policyholder will elect to withdraw from the contract each year. The withdrawal rate assumption varies by age and duration of the contract, and also by other factors such as benefit type. For any given contract, withdrawal rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. For GMWBs, any increase (decrease) in withdrawal rates results in an increase (decrease) in the estimated fair value of the guarantees. For GMABs and GMIBs, any increase (decrease) in withdrawal rates results in a decrease (increase) in the estimated fair value. (17) Long-term equity volatilities represent equity volatility beyond the period for which observable equity volatilities are available. For any given contract, long-term equity volatility rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. (18) Nonperformance risk spread varies by duration and by currency. For any given contract, multiple nonperformance risk spreads will apply, depending on the duration of the cash flow being discounted for purposes of valuing the embedded derivative. |
Fair Value, Measured on Recurring Basis, Unobservable Input Reconciliation | The following tables summarize the change of all assets and (liabilities) measured at estimated fair value on a recurring basis using significant unobservable inputs (Level 3): Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Fixed Maturity Securities AFS Corporate (1) Structured Foreign Government Municipals Equity Short-term (In millions) Three Months Ended June 30, 2019 Balance, beginning of period $ 7,330 $ 3,314 $ 21 $ — $ 366 $ 127 Total realized/unrealized gains (losses) included in net income (loss) (2), (3) — 11 — — (4 ) — Total realized/unrealized gains (losses) included in AOCI 126 24 — — — — Purchases (4) 416 194 — 7 6 11 Sales (4) (205 ) (175 ) (2 ) — (16 ) (25 ) Issuances (4) — — — — — — Settlements (4) — — — — — — Transfers into Level 3 (5) 77 6 1 — — — Transfers out of Level 3 (5) (94 ) (132 ) (10 ) — — — Balance, end of period $ 7,650 $ 3,242 $ 10 $ 7 $ 352 $ 113 Three Months Ended June 30, 2018 Balance, beginning of period $ 7,295 $ 3,852 $ 13 $ — $ 359 $ 550 Total realized/unrealized gains (losses) included in net income (loss) (2), (3) 5 20 — — (5 ) — Total realized/unrealized gains (losses) included in AOCI (227 ) 4 (1 ) — — — Purchases (4) 637 652 — — 5 2 Sales (4) (559 ) (202 ) (1 ) — (14 ) — Issuances (4) — — — — — — Settlements (4) — — — — — — Transfers into Level 3 (5) — 2 — — — — Transfers out of Level 3 (5) (87 ) (458 ) — — — — Balance, end of period $ 7,064 $ 3,870 $ 11 $ — $ 345 $ 552 Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at June 30, 2019: (6) $ (2 ) $ 11 $ — $ — $ (5 ) $ — Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at June 30, 2018: (6) $ (1 ) $ 18 $ — $ — $ — $ — Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Residential Other Investments Net Net Embedded Separate Accounts (9) (In millions) Three Months Ended June 30, 2019 Balance, beginning of period $ 276 $ 238 $ (87 ) $ (847 ) $ 897 Total realized/unrealized gains (losses) included in net income (loss) (2), (3) 4 10 61 (325 ) 2 Total realized/unrealized gains (losses) included in AOCI — — 136 — — Purchases (4) — 20 4 — 101 Sales (4) (9 ) — — — (75 ) Issuances (4) — — (1 ) — 3 Settlements (4) (9 ) — (40 ) (47 ) (3 ) Transfers into Level 3 (5) — — — — — Transfers out of Level 3 (5) — — — — — Balance, end of period $ 262 $ 268 $ 73 $ (1,219 ) $ 925 Three Months Ended June 30, 2018 Balance, beginning of period $ 438 $ — $ (293 ) $ (591 ) $ 1,222 Total realized/unrealized gains (losses) included in net income (loss) (2), (3) 1 — (24 ) 206 (1 ) Total realized/unrealized gains (losses) included in AOCI — — (8 ) — — Purchases (4) — — 4 — 270 Sales (4) (17 ) — — — (321 ) Issuances (4) — — — — (2 ) Settlements (4) (17 ) — 46 (52 ) 2 Transfers into Level 3 (5) — — — — 71 Transfers out of Level 3 (5) — — — — (103 ) Balance, end of period $ 405 $ — $ (275 ) $ (437 ) $ 1,138 Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at June 30, 2019: (6) $ 1 $ 10 $ 53 $ (323 ) $ — Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at June 30, 2018: (6) $ (1 ) $ — $ (6 ) $ 207 $ — Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Fixed Maturity Securities AFS Corporate (1) Structured Securities Foreign Government Municipals Equity Short-term (In millions) Six Months Ended June 30, 2019 Balance, beginning of period $ 7,101 $ 3,541 $ 10 $ — $ 356 $ 25 Total realized/unrealized gains (losses) included in net income (loss) (2), (3) (3 ) 24 — — 24 — Total realized/unrealized gains (losses) included in AOCI 349 42 — — — — Purchases (4) 637 275 — 7 9 113 Sales (4) (257 ) (297 ) (1 ) — (37 ) (25 ) Issuances (4) — — — — — — Settlements (4) — — — — — — Transfers into Level 3 (5) 174 6 1 — — — Transfers out of Level 3 (5) (351 ) (349 ) — — — — Balance, end of period $ 7,650 $ 3,242 $ 10 $ 7 $ 352 $ 113 Six Months Ended June 30, 2018 Balance, beginning of period $ 7,586 $ 4,076 $ 31 $ — $ 366 $ 7 Total realized/unrealized gains (losses) included in net income (loss) (2), (3) 9 43 — — (11 ) — Total realized/unrealized gains (losses) included in AOCI (258 ) 11 (1 ) — — (1 ) Purchases (4) 927 656 — — 5 552 Sales (4) (1,016 ) (423 ) (1 ) — (15 ) (1 ) Issuances (4) — — — — — — Settlements (4) — — — — — — Transfers into Level 3 (5) 124 48 — — — — Transfers out of Level 3 (5) (308 ) (541 ) (18 ) — — (5 ) Balance, end of period $ 7,064 $ 3,870 $ 11 $ — $ 345 $ 552 Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at June 30, 2019: (6) $ (4 ) $ 24 $ — $ — $ 12 $ — Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at June 30, 2018: (6) $ (1 ) $ 38 $ — $ — $ — $ — Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Residential Other Investments Net Net Embedded Separate Accounts (9) (In millions) Six Months Ended June 30, 2019 Balance, beginning of period $ 299 $ 215 $ (192 ) $ (704 ) $ 937 Total realized/unrealized gains (losses) included in net income (loss) (2), (3) 6 33 76 (423 ) 6 Total realized/unrealized gains (losses) included in AOCI — — 224 — — Purchases (4) — 20 4 — 124 Sales (4) (25 ) — — — (140 ) Issuances (4) — — (1 ) — 2 Settlements (4) (18 ) — (38 ) (92 ) (2 ) Transfers into Level 3 (5) — — — — — Transfers out of Level 3 (5) — — — — (2 ) Balance, end of period $ 262 $ 268 $ 73 $ (1,219 ) $ 925 Six Months Ended June 30, 2018 Balance, beginning of period $ 520 $ — $ (191 ) $ (876 ) $ 958 Total realized/unrealized gains (losses) included in net income (loss) (2), (3) 3 — (71 ) 539 1 Total realized/unrealized gains (losses) included in AOCI — — (112 ) — — Purchases (4) — — 4 — 307 Sales (4) (81 ) — — — (147 ) Issuances (4) — — — — (3 ) Settlements (4) (37 ) — 95 (100 ) 1 Transfers into Level 3 (5) — — — — 99 Transfers out of Level 3 (5) — — — — (78 ) Balance, end of period $ 405 $ — $ (275 ) $ (437 ) $ 1,138 Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at June 30, 2019: (6) $ 1 $ 33 $ 61 $ (420 ) $ — Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at June 30, 2018: (6) $ (8 ) $ — $ 11 $ 542 $ — __________________ (1) Comprised of U.S. and foreign corporate securities. (2) Amortization of premium/accretion of discount is included within net investment income. Impairments charged to net income (loss) on securities are included in net investment gains (losses), while changes in estimated fair value of residential mortgage loans — FVO are included in net investment income. Lapses associated with net embedded derivatives are included in net derivative gains (losses). Substantially all realized/unrealized gains (losses) included in net income (loss) for net derivatives and net embedded derivatives are reported in net derivative gains (losses). (3) Interest and dividend accruals, as well as cash interest coupons and dividends received, are excluded from the rollforward. (4) Items purchased/issued and then sold/settled in the same period are excluded from the rollforward. Fees attributed to embedded derivatives are included in settlements. (5) Items transferred into and then out of Level 3 in the same period are excluded from the rollforward. (6) Changes in unrealized gains (losses) included in net income (loss) relate to assets and liabilities still held at the end of the respective periods. Substantially all changes in unrealized gains (losses) included in net income (loss) for net derivatives and net embedded derivatives are reported in net derivative gains (losses). (7) Freestanding derivative assets and liabilities are presented net for purposes of the rollforward. (8) Embedded derivative assets and liabilities are presented net for purposes of the rollforward. (9) Investment performance related to separate account assets is fully offset by corresponding amounts credited to contractholders within separate account liabilities. Therefore, such changes in estimated fair value are not recorded in net income (loss). For the purpose of this disclosure, these changes are presented within net investment gains (losses). Separate account assets and liabilities are presented net for the purposes of the rollforward. |
Fair Value Option | Fair Value Option The Company elects the FVO for certain residential mortgage loans that are managed on a total return basis. The following table presents information for residential mortgage loans, which are accounted for under the FVO and were initially measured at fair value. June 30, 2019 December 31, 2018 (In millions) Unpaid principal balance $ 309 $ 344 Difference between estimated fair value and unpaid principal balance (47 ) (45 ) Carrying value at estimated fair value $ 262 $ 299 Loans in nonaccrual status $ 71 $ 89 Loans more than 90 days past due $ 28 $ 41 Loans in nonaccrual status or more than 90 days past due, or both - difference between aggregate estimated fair value and unpaid principal balance $ (33 ) $ (36 ) |
Fair Value of Financial Instruments Carried at Other Than Fair Value | The carrying values and estimated fair values for such financial instruments, and their corresponding placement in the fair value hierarchy, are summarized as follows at: June 30, 2019 Fair Value Hierarchy Carrying Level 1 Level 2 Level 3 Total (In millions) Assets Mortgage loans $ 64,409 $ — $ — $ 66,590 $ 66,590 Policy loans $ 6,064 $ — $ 267 $ 6,907 $ 7,174 Other invested assets $ 2,973 $ — $ 2,700 $ 144 $ 2,844 Premiums, reinsurance and other receivables $ 14,342 $ — $ 366 $ 14,707 $ 15,073 Liabilities Policyholder account balances $ 74,364 $ — $ — $ 76,592 $ 76,592 Long-term debt $ 1,549 $ — $ 1,846 $ — $ 1,846 Other liabilities $ 13,671 $ — $ 677 $ 13,134 $ 13,811 Separate account liabilities $ 54,884 $ — $ 54,884 $ — $ 54,884 December 31, 2018 Fair Value Hierarchy Carrying Level 1 Level 2 Level 3 Total (In millions) Assets Mortgage loans $ 63,388 $ — $ — $ 64,409 $ 64,409 Policy loans $ 6,061 $ — $ 269 $ 6,712 $ 6,981 Other invested assets $ 2,940 $ — $ 2,673 $ 146 $ 2,819 Premiums, reinsurance and other receivables $ 14,228 $ — $ 113 $ 14,673 $ 14,786 Liabilities Policyholder account balances $ 72,194 $ — $ — $ 72,689 $ 72,689 Long-term debt $ 1,562 $ — $ 1,746 $ — $ 1,746 Other liabilities $ 13,593 $ — $ 448 $ 13,189 $ 13,637 Separate account liabilities $ 50,578 $ — $ 50,578 $ — $ 50,578 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Lease, Cost | The components of operating lease costs were as follows: Three Months Six Months 2019 (In millions) Operating lease cost $ 29 $ 58 Variable lease cost 3 6 Sublease income (20 ) (40 ) Net lease cost $ 12 $ 24 |
Lessee, Operating Lease, Disclosure | The ROU assets and lease liabilities for operating leases were: June 30, 2019 (In millions) ROU asset (1) $ 823 Lease liability (1) $ 917 __________________ (1) Assets and liabilities include amounts recognized upon adoption of new guidance. See Note 1 . Supplemental other information related to operating leases was as follows: June 30, 2019 (Dollars in millions) Cash paid for amounts included in the measurement of lease liability - operating cash flows $ 48 ROU assets obtained in exchange for new lease liabilities $ 141 Weighted-average remaining lease term 9 years Weighted-average discount rate 3.9 % |
Lessee, Operating Lease, Liability, Maturity | Maturities of operating lease liabilities were as follows: June 30, 2019 (In millions) Remainder of 2019 $ 65 2020 124 2021 125 2022 123 2023 112 Thereafter 554 Total undiscounted cash flows 1,103 Less: interest 186 Present value of lease liability $ 917 |
Schedule of Future Minimum Rental Payments for Operating Leases | Future minimum gross rental payments relating to lease arrangements in effect as determined prior to the adoption of ASU 2016-02 are as follows: December 31, 2018 (In millions) 2019 $ 125 2020 137 2021 136 2022 134 2023 122 Thereafter 567 Total $ 1,221 |
Equity (Tables)
Equity (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive Income (Loss) | Information regarding changes in the balances of each component of AOCI attributable to Metropolitan Life Insurance Company was as follows: Three Months Unrealized Investment Gains (Losses), Net of Related Offsets (1) Unrealized Gains (Losses) on Derivatives Foreign Currency Translation Adjustments Defined Benefit Plans Adjustment Total (In millions) Balance, beginning of period $ 5,410 $ 1,438 $ (74 ) $ (257 ) $ 6,517 OCI before reclassifications 2,733 523 (11 ) — 3,245 Deferred income tax benefit (expense) (586 ) (109 ) 1 — (694 ) AOCI before reclassifications, net of income tax 7,557 1,852 (84 ) (257 ) 9,068 Amounts reclassified from AOCI (60 ) (44 ) — 7 (97 ) Deferred income tax benefit (expense) 12 9 — (2 ) 19 Amounts reclassified from AOCI, net of income tax (48 ) (35 ) — 5 (78 ) Balance, end of period $ 7,509 $ 1,817 $ (84 ) $ (252 ) $ 8,990 Three Months Unrealized Investment Gains (Losses), Net of Related Offsets (1) Unrealized Gains (Losses) on Derivatives Foreign Currency Translation Adjustments Defined Benefit Plans Adjustment Total (In millions) Balance, beginning of period $ 5,597 $ 563 $ (38 ) $ (2,137 ) $ 3,985 OCI before reclassifications (2,204 ) 177 (10 ) — (2,037 ) Deferred income tax benefit (expense) 470 (48 ) 1 — 423 AOCI before reclassifications, net of income tax 3,863 692 (47 ) (2,137 ) 2,371 Amounts reclassified from AOCI 89 393 — 31 513 Deferred income tax benefit (expense) (19 ) (72 ) — (6 ) (97 ) Amounts reclassified from AOCI, net of income tax 70 321 — 25 416 Balance, end of period $ 3,933 $ 1,013 $ (47 ) $ (2,112 ) $ 2,787 Six Months Unrealized Investment Gains (Losses), Net of Related Offsets (1) Unrealized Gains (Losses) on Derivatives Foreign Currency Translation Adjustments Defined Benefit Plans Adjustment Total (In millions) Balance, beginning of period $ 2,515 $ 1,382 $ (74 ) $ (261 ) $ 3,562 OCI before reclassifications 6,337 617 (14 ) (1 ) 6,939 Deferred income tax benefit (expense) (1,340 ) (130 ) 4 — (1,466 ) AOCI before reclassifications, net of income tax 7,512 1,869 (84 ) (262 ) 9,035 Amounts reclassified from AOCI (2 ) (89 ) — 13 (78 ) Deferred income tax benefit (expense) — 19 — (3 ) 16 Amounts reclassified from AOCI, net of income tax (2 ) (70 ) — 10 (62 ) Cumulative effects of changes in accounting principles (1 ) 22 — — 21 Deferred income tax benefit (expense), cumulative effects of changes in accounting principles — (4 ) — — (4 ) Cumulative effects of changes in accounting principles, net of income tax (2) (1 ) 18 — — 17 Balance, end of period $ 7,509 $ 1,817 $ (84 ) $ (252 ) $ 8,990 Six Months Unrealized Investment Gains (Losses), Net of Related Offsets (1) Unrealized Gains (Losses) on Derivatives Foreign Currency Translation Adjustments Defined Benefit Plans Adjustment Total (In millions) Balance, beginning of period $ 6,351 $ 906 $ (47 ) $ (1,782 ) $ 5,428 OCI before reclassifications (4,584 ) (329 ) 12 — (4,901 ) Deferred income tax benefit (expense) 985 55 (5 ) — 1,035 AOCI before reclassifications, net of income tax 2,752 632 (40 ) (1,782 ) 1,562 Amounts reclassified from AOCI 99 209 — 62 370 Deferred income tax benefit (expense) (21 ) (35 ) — (13 ) (69 ) Amounts reclassified from AOCI, net of income tax 78 174 — 49 301 Cumulative effects of changes in accounting principles (119 ) — — — (119 ) Deferred income tax benefit (expense), cumulative effects of changes in accounting principles 1,222 207 (7 ) (379 ) 1,043 Cumulative effects of changes in accounting principles, net of income tax (3) 1,103 207 (7 ) (379 ) 924 Balance, end of period $ 3,933 $ 1,013 $ (47 ) $ (2,112 ) $ 2,787 __________________ (1) See Note 5 for information on offsets to investments related to future policy benefits, DAC, VOBA and DSI, and the policyholder dividend obligation. (2) See Note 1 for further information on adoption of new accounting pronouncements. (3) See Note 1 of the Notes to the Consolidated Financial Statements included in the 2018 Annual Report for further information on adoption of new accounting pronouncements. |
Reclassification out of Accumulated Other Comprehensive Income (Loss) | Information regarding amounts reclassified out of each component of AOCI was as follows: AOCI Components Amounts Reclassified from AOCI Consolidated Statements of Three Months Six Months 2019 2018 2019 2018 (In millions) Net unrealized investment gains (losses): Net unrealized investment gains (losses) $ 82 $ (58 ) $ 41 $ (105 ) Net investment gains (losses) Net unrealized investment gains (losses) — 7 — 10 Net investment income Net unrealized investment gains (losses) (22 ) (38 ) (39 ) (4 ) Net derivative gains (losses) Net unrealized investment gains (losses), before income tax 60 (89 ) 2 (99 ) Income tax (expense) benefit (12 ) 19 — 21 Net unrealized investment gains (losses), net of income tax 48 (70 ) 2 (78 ) Unrealized gains (losses) on derivatives - cash flow hedges: Interest rate derivatives 6 6 11 10 Net investment income Interest rate derivatives 5 — (1 ) — Net investment gains (losses) Interest rate derivatives — — — 20 Net derivative gains (losses) Foreign currency exchange rate derivatives (1 ) (1 ) (2 ) (1 ) Net investment income Foreign currency exchange rate derivatives 34 — 81 — Net investment gains (losses) Foreign currency exchange rate derivatives — (398 ) — (238 ) Net derivative gains (losses) Gains (losses) on cash flow hedges, before income tax 44 (393 ) 89 (209 ) Income tax (expense) benefit (9 ) 72 (19 ) 35 Gains (losses) on cash flow hedges, net of income tax 35 (321 ) 70 (174 ) Defined benefit plans adjustment: (1) Amortization of net actuarial gains (losses) (7 ) (35 ) (14 ) (71 ) Amortization of prior service (costs) credit — 4 1 9 Amortization of defined benefit plan items, before income tax (7 ) (31 ) (13 ) (62 ) Income tax (expense) benefit 2 6 3 13 Amortization of defined benefit plan items, net of income tax (5 ) (25 ) (10 ) (49 ) Total reclassifications, net of income tax $ 78 $ (416 ) $ 62 $ (301 ) __________________ (1) These AOCI components are included in the computation of net periodic benefit costs. See Note 11 . |
Other Revenues and Other Expe_2
Other Revenues and Other Expenses (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Other Income and Expenses [Abstract] | |
Disaggregation of Revenue | Information on other revenues, which primarily includes fees related to service contracts from customers, was as follows: Three Months Six Months 2019 2018 2019 2018 (In millions) Prepaid legal plans $ 82 $ 73 $ 163 $ 146 Recordkeeping and administrative services (1) 51 55 101 113 Administrative services-only contracts 53 53 106 109 Other revenue from service contracts from customers 5 22 24 34 Total revenues from service contracts from customers 191 203 394 402 Other 212 198 410 400 Total other revenues $ 403 $ 401 $ 804 $ 802 __________________ (1) Related to products and businesses no longer actively marketed by the Company. |
Other Expenses | Information on other expenses was as follows: Three Months Six Months 2019 2018 2019 2018 (In millions) General and administrative expenses $ 629 $ 649 $ 1,199 $ 1,340 Pension, postretirement and postemployment benefit costs 26 17 52 34 Premium taxes, other taxes, and licenses & fees 76 88 153 183 Commissions and other variable expenses 454 425 895 872 Capitalization of DAC (17 ) (9 ) (29 ) (19 ) Amortization of DAC and VOBA 41 79 60 167 Interest expense on debt 26 28 53 54 Total other expenses $ 1,235 $ 1,277 $ 2,383 $ 2,631 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Retirement Benefits [Abstract] | |
Net periodic benefit costs | The components of net periodic benefit costs, reported in other expenses, were as follows: Three Months 2019 2018 Pension Benefits Other Postretirement Benefits Pension Benefits Other Postretirement Benefits (In millions) Service costs $ 5 $ — $ 39 $ 2 Interest costs 11 — 93 14 Expected return on plan assets — — (132 ) (18 ) Amortization of net actuarial (gains) losses 7 — 44 (9 ) Amortization of prior service costs (credit) — — — (4 ) Allocated to affiliates (5 ) — (21 ) 8 Net periodic benefit costs (credit) $ 18 $ — $ 23 $ (7 ) Six Months 2019 2018 Pension Benefits Other Postretirement Benefits Pension Benefits Other Postretirement Benefits (In millions) Service costs $ 9 $ — $ 79 $ 3 Interest costs 23 — 186 25 Expected return on plan assets — — (263 ) (36 ) Amortization of net actuarial (gains) losses 14 — 88 (17 ) Amortization of prior service costs (credit) (1 ) — — (9 ) Allocated to affiliates (11 ) — (38 ) 13 Net periodic benefit costs (credit) $ 34 $ — $ 52 $ (21 ) |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Related Party Transactions [Abstract] | |
Effects of reinsurance | Information regarding the significant effects of affiliated reinsurance on the interim condensed consolidated statements of operations and comprehensive income (loss) was as follows: Three Months Ended Six Months 2019 2018 2019 2018 (In millions) Premiums Reinsurance assumed $ 2 $ 2 $ 5 $ 5 Reinsurance ceded (27 ) (31 ) (59 ) (63 ) Net premiums $ (25 ) $ (29 ) $ (54 ) $ (58 ) Universal life and investment-type product policy fees Reinsurance assumed $ — $ (3 ) $ — $ (2 ) Reinsurance ceded (3 ) (5 ) (9 ) (10 ) Net universal life and investment-type product policy fees $ (3 ) $ (8 ) $ (9 ) $ (12 ) Other revenues Reinsurance assumed $ (5 ) $ 2 $ (9 ) $ 5 Reinsurance ceded 139 130 266 263 Net other revenues $ 134 $ 132 $ 257 $ 268 Policyholder benefits and claims Reinsurance assumed $ 1 $ — $ 2 $ 4 Reinsurance ceded (25 ) (29 ) (58 ) (57 ) Net policyholder benefits and claims $ (24 ) $ (29 ) $ (56 ) $ (53 ) Interest credited to policyholder account balances Reinsurance assumed $ 8 $ 11 $ 15 $ 22 Reinsurance ceded (3 ) (3 ) (6 ) (6 ) Net interest credited to policyholder account balances $ 5 $ 8 $ 9 $ 16 Other expenses Reinsurance assumed $ — $ 2 $ — $ 10 Reinsurance ceded 139 126 264 258 Net other expenses $ 139 $ 128 $ 264 $ 268 Information regarding the significant effects of affiliated reinsurance on the interim condensed consolidated balance sheets was as follows at: June 30, 2019 December 31, 2018 Assumed Ceded Assumed Ceded (In millions) Assets Premiums, reinsurance and other receivables $ — $ 12,587 $ — $ 12,676 Deferred policy acquisition costs and value of business acquired — (165 ) — (175 ) Total assets $ — $ 12,422 $ — $ 12,501 Liabilities Future policy benefits $ 57 $ (6 ) $ 61 $ (1 ) Policyholder account balances 135 — 141 — Other policy-related balances 1 10 6 12 Other liabilities 842 12,688 841 12,366 Total liabilities $ 1,035 $ 12,692 $ 1,049 $ 12,377 |
Business, Basis of Presentati_3
Business, Basis of Presentation and Summary of Significant Accounting Policies (New Accounting Pronouncements) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Mar. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Operating Lease, Right-of-Use Asset | $ 823 | ||||||
Operating Lease, Right-of-Use Liability | 917 | ||||||
Retained Earnings (Accumulated Deficit) | 9,018 | $ 9,512 | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ 8,990 | $ 6,517 | $ 3,562 | $ 2,787 | $ 3,985 | $ 5,428 | |
Accounting Standards Update 2017-12 | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Retained Earnings (Accumulated Deficit) | $ (18) | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 18 | ||||||
Accounting Standards Update 2016-02 | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Operating Lease, Right-of-Use Asset | 818 | ||||||
Operating Lease, Right-of-Use Liability | 902 | ||||||
Retained Earnings (Accumulated Deficit) | $ 95 |
Business, Basis of Presentati_4
Business, Basis of Presentation and Summary of Significant Accounting Policies (Narrative) (Details) | 6 Months Ended |
Jun. 30, 2019Segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of segments | 2 |
Segment Information (Earnings)
Segment Information (Earnings) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenues | ||||||
Premiums | $ 5,154 | $ 10,920 | $ 10,206 | $ 15,869 | ||
Universal life and investment-type product policy fees | 521 | 529 | 1,024 | 1,060 | ||
Net investment income | 2,794 | 2,684 | 5,439 | 5,385 | ||
Other revenues | 403 | 401 | 804 | 802 | ||
Net investment gains (losses) | 66 | (30) | 12 | (226) | ||
Net derivative gains (losses) | 208 | 305 | (102) | 365 | ||
Total revenues | 9,146 | 14,809 | 17,383 | 23,255 | ||
Expenses | ||||||
Policyholder benefits and claims and policyholder dividends | 6,025 | 11,820 | 11,944 | 17,596 | ||
Interest credited to policyholder account balances | 663 | 612 | 1,325 | 1,193 | ||
Capitalization of DAC | (17) | (9) | (29) | (19) | ||
Amortization of DAC and VOBA | 41 | 79 | 60 | 167 | ||
Interest expense on debt | 26 | 28 | 53 | 54 | ||
Other Expenses | 1,185 | 1,179 | 2,299 | 2,429 | ||
Total expenses | 7,923 | 13,709 | 15,652 | 21,420 | ||
Provision for income tax expense (benefit) | 156 | 93 | 156 | 156 | ||
Net income (loss) | 1,067 | $ 508 | 1,007 | $ 672 | 1,575 | 1,679 |
Operating Segments | ||||||
Revenues | ||||||
Premiums | 5,154 | 10,920 | 10,206 | 15,869 | ||
Universal life and investment-type product policy fees | 499 | 505 | 980 | 1,013 | ||
Net investment income | 2,866 | 2,784 | 5,586 | 5,577 | ||
Other revenues | 403 | 401 | 804 | 802 | ||
Net investment gains (losses) | 0 | 0 | 0 | 0 | ||
Net derivative gains (losses) | 0 | 0 | 0 | 0 | ||
Total revenues | 8,922 | 14,610 | 17,576 | 23,261 | ||
Expenses | ||||||
Policyholder benefits and claims and policyholder dividends | 5,978 | 11,791 | 11,814 | 17,565 | ||
Interest credited to policyholder account balances | 668 | 612 | 1,333 | 1,194 | ||
Capitalization of DAC | (17) | (9) | (29) | (19) | ||
Amortization of DAC and VOBA | 73 | 89 | 134 | 183 | ||
Interest expense on debt | 26 | 28 | 53 | 54 | ||
Other Expenses | 1,185 | 1,184 | 2,299 | 2,436 | ||
Total expenses | 7,913 | 13,695 | 15,604 | 21,413 | ||
Provision for income tax expense (benefit) | 110 | 56 | 206 | 161 | ||
Adjusted earnings | 899 | 859 | 1,766 | 1,687 | ||
Operating Segments | U.S. | ||||||
Revenues | ||||||
Premiums | 4,380 | 10,123 | 8,682 | 14,300 | ||
Universal life and investment-type product policy fees | 264 | 257 | 528 | 510 | ||
Net investment income | 1,701 | 1,645 | 3,339 | 3,238 | ||
Other revenues | 202 | 196 | 406 | 392 | ||
Net investment gains (losses) | 0 | 0 | 0 | 0 | ||
Net derivative gains (losses) | 0 | 0 | 0 | 0 | ||
Total revenues | 6,547 | 12,221 | 12,955 | 18,440 | ||
Expenses | ||||||
Policyholder benefits and claims and policyholder dividends | 4,522 | 10,332 | 8,960 | 14,743 | ||
Interest credited to policyholder account balances | 488 | 425 | 975 | 819 | ||
Capitalization of DAC | (19) | (10) | (34) | (22) | ||
Amortization of DAC and VOBA | 13 | 15 | 27 | 32 | ||
Interest expense on debt | 2 | 3 | 5 | 6 | ||
Other Expenses | 724 | 705 | 1,447 | 1,424 | ||
Total expenses | 5,730 | 11,470 | 11,380 | 17,002 | ||
Provision for income tax expense (benefit) | 169 | 159 | 326 | 306 | ||
Adjusted earnings | 648 | 592 | 1,249 | 1,132 | ||
Operating Segments | MetLife Holdings | ||||||
Revenues | ||||||
Premiums | 774 | 795 | 1,524 | 1,568 | ||
Universal life and investment-type product policy fees | 235 | 248 | 452 | 503 | ||
Net investment income | 1,191 | 1,177 | 2,330 | 2,381 | ||
Other revenues | 51 | 67 | 114 | 133 | ||
Net investment gains (losses) | 0 | 0 | 0 | 0 | ||
Net derivative gains (losses) | 0 | 0 | 0 | 0 | ||
Total revenues | 2,251 | 2,287 | 4,420 | 4,585 | ||
Expenses | ||||||
Policyholder benefits and claims and policyholder dividends | 1,456 | 1,457 | 2,854 | 2,831 | ||
Interest credited to policyholder account balances | 180 | 187 | 358 | 375 | ||
Capitalization of DAC | 2 | 1 | 5 | 3 | ||
Amortization of DAC and VOBA | 60 | 74 | 107 | 151 | ||
Interest expense on debt | 2 | 2 | 4 | 4 | ||
Other Expenses | 206 | 245 | 406 | 500 | ||
Total expenses | 1,906 | 1,966 | 3,734 | 3,864 | ||
Provision for income tax expense (benefit) | 67 | 61 | 134 | 138 | ||
Adjusted earnings | 278 | 260 | 552 | 583 | ||
Operating Segments | Corporate & Other | ||||||
Revenues | ||||||
Premiums | 0 | 2 | 0 | 1 | ||
Universal life and investment-type product policy fees | 0 | 0 | 0 | 0 | ||
Net investment income | (26) | (38) | (83) | (42) | ||
Other revenues | 150 | 138 | 284 | 277 | ||
Net investment gains (losses) | 0 | 0 | 0 | 0 | ||
Net derivative gains (losses) | 0 | 0 | 0 | 0 | ||
Total revenues | 124 | 102 | 201 | 236 | ||
Expenses | ||||||
Policyholder benefits and claims and policyholder dividends | 0 | 2 | 0 | (9) | ||
Interest credited to policyholder account balances | 0 | 0 | 0 | 0 | ||
Capitalization of DAC | 0 | 0 | 0 | 0 | ||
Amortization of DAC and VOBA | 0 | 0 | 0 | 0 | ||
Interest expense on debt | 22 | 23 | 44 | 44 | ||
Other Expenses | 255 | 234 | 446 | 512 | ||
Total expenses | 277 | 259 | 490 | 547 | ||
Provision for income tax expense (benefit) | (126) | (164) | (254) | (283) | ||
Adjusted earnings | (27) | 7 | (35) | (28) | ||
Significant Reconciling Items | ||||||
Revenues | ||||||
Premiums | 0 | 0 | 0 | 0 | ||
Universal life and investment-type product policy fees | 22 | 24 | 44 | 47 | ||
Net investment income | (72) | (100) | (147) | (192) | ||
Other revenues | 0 | 0 | 0 | 0 | ||
Net investment gains (losses) | 66 | (30) | 12 | (226) | ||
Net derivative gains (losses) | 208 | 305 | (102) | 365 | ||
Total revenues | 224 | 199 | (193) | (6) | ||
Expenses | ||||||
Policyholder benefits and claims and policyholder dividends | 47 | 29 | 130 | 31 | ||
Interest credited to policyholder account balances | (5) | 0 | (8) | (1) | ||
Capitalization of DAC | 0 | 0 | 0 | 0 | ||
Amortization of DAC and VOBA | (32) | (10) | (74) | (16) | ||
Interest expense on debt | 0 | 0 | 0 | 0 | ||
Other Expenses | 0 | (5) | 0 | (7) | ||
Total expenses | 10 | 14 | 48 | 7 | ||
Provision for income tax expense (benefit) | $ 46 | $ 37 | $ (50) | $ (5) |
Segment Information (Total Asse
Segment Information (Total Assets) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 428,103 | $ 406,917 |
U.S. | ||
Segment Reporting Information [Line Items] | ||
Total assets | 247,783 | 233,998 |
MetLife Holdings | ||
Segment Reporting Information [Line Items] | ||
Total assets | 154,635 | 147,498 |
Corporate & Other | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ 25,685 | $ 25,421 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)Segment | Jun. 30, 2018USD ($) | |
Segment Reporting [Abstract] | ||||
Number of segments | Segment | 2 | |||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 9,146 | $ 14,809 | $ 17,383 | $ 23,255 |
Concentration Risk, Percentage | 10.00% | 10.00% | 10.00% | 10.00% |
One U.S. Customer | U.S. | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 800 | $ 6,000 | $ 1,600 | $ 6,000 |
Premiums, universal life and investment-type product policy fees and other revenues | One U.S. Customer | U.S. | ||||
Segment Reporting Information [Line Items] | ||||
Concentration Risk, Percentage | 13.00% | 50.00% | 13.00% | 34.00% |
Insurance (Guarantees Related t
Insurance (Guarantees Related to Annuity Contracts) (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Variable Annuity Guarantees: | Guaranteed Death Benefits | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Total account value | $ 49,796 | $ 47,393 |
Separate account value (1) | 39,994 | 37,342 |
Net amount at risk | $ 1,282 | $ 2,433 |
Average attained age of contractholders | 68 years | 67 years |
Variable Annuity Guarantees: | Guaranteed Annuitization Benefits | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Total account value | $ 21,826 | $ 20,692 |
Separate account value (1) | 20,993 | 19,839 |
Net amount at risk | $ 375 | $ 418 |
Average attained age of contractholders | 66 years | 65 years |
Other Annuity Guarantees: | Guaranteed Annuitization Benefits | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Total account value | $ 144 | $ 144 |
Net amount at risk | $ 83 | $ 85 |
Average attained age of contractholders | 54 years | 53 years |
Insurance (Guarantees Related_2
Insurance (Guarantees Related to Universal and Variable Life Contracts) (Details) - Universal and Variable Life Contracts - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Secondary Guarantees | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Total account value (1), (2) | $ 4,575 | $ 4,614 |
Net amount at risk (6) | $ 43,042 | $ 44,596 |
Average attained age of policyholders | 56 years | 55 years |
Paid-Up Guarantees | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Total account value (1), (2) | $ 916 | $ 937 |
Net amount at risk (6) | $ 6,085 | $ 6,290 |
Average attained age of policyholders | 64 years | 63 years |
Insurance (Rollforward of Unpai
Insurance (Rollforward of Unpaid Claims) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||
Balance, beginning of period | $ 12,590 | $ 12,090 |
Less: Reinsurance recoverables | 1,497 | 1,401 |
Net balance, beginning of period | 11,093 | 10,689 |
Incurred related to: | ||
Current period | 8,830 | 8,425 |
Prior periods (1) | (53) | 73 |
Total incurred | 8,777 | 8,498 |
Paid related to: | ||
Current period | (5,424) | (5,172) |
Prior periods | (3,060) | (3,164) |
Total paid | (8,484) | (8,336) |
Net balance, end of period | 11,386 | 10,851 |
Add: Reinsurance recoverables | 1,587 | 1,446 |
Balance, end of period (included in future policy benefits and other policy-related balances) | $ 12,973 | $ 12,297 |
Closed Block (Liabilities and A
Closed Block (Liabilities and Assets) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Closed Block Liabilities | |||
Future policy benefits | $ 39,608 | $ 40,032 | |
Other policy-related balances | 395 | 317 | |
Policyholder dividends payable | 457 | 431 | |
Policyholder dividend obligation | 1,834 | 428 | $ 2,121 |
Deferred income tax liability | 51 | 28 | |
Other liabilities | 137 | 328 | |
Total closed block liabilities | 42,482 | 41,564 | |
Assets Designated to the Closed Block | |||
Fixed maturity securities available-for-sale, at estimated fair value | 26,132 | 25,354 | |
Equity securities, at estimated fair value | 64 | 61 | |
Contractholder-directed equity securities and fair value option securities, at estimated fair value | 49 | 43 | |
Mortgage loans | 6,900 | 6,778 | |
Policy loans | 4,498 | 4,527 | |
Real estate and real estate joint ventures | 550 | 544 | |
Other invested assets | 657 | 643 | |
Total investments | 38,850 | 37,950 | |
Assets Designated to Closed Block, Cash and Cash Equivalents | 75 | 0 | |
Accrued investment income | 434 | 443 | |
Premiums, reinsurance and other receivables | 85 | 83 | |
Current income tax recoverable | 78 | 69 | |
Total assets designated to the closed block | 39,522 | 38,545 | |
Excess of closed block liabilities over assets designated to the closed block | 2,960 | 3,019 | |
Amounts included in AOCI: | |||
Unrealized investment gains (losses), net of income tax | 2,226 | 1,089 | |
Unrealized gains (losses) on derivatives, net of income tax | 103 | 86 | |
Allocated to policyholder dividend obligation, net of income tax | (1,449) | (338) | |
Total amounts included in AOCI | 880 | 837 | |
Maximum future earnings to be recognized from closed block assets and liabilities | $ 3,840 | $ 3,856 |
Closed Block (Policyholder Divi
Closed Block (Policyholder Dividend Obligation) (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Closed block policyholder dividend obligation | ||
Balance, beginning of period | $ 428 | $ 2,121 |
Change in unrealized investment and derivative gains (losses) | 1,406 | (1,693) |
Balance, end of period | $ 1,834 | $ 428 |
Closed Block (Revenues and Expe
Closed Block (Revenues and Expenses) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenues | ||||
Premiums | $ 390 | $ 410 | $ 757 | $ 797 |
Net investment income | 447 | 431 | 875 | 875 |
Net investment gains (losses) | (4) | (24) | (5) | (53) |
Net derivative gains (losses) | 9 | 13 | 12 | 10 |
Total revenues | 842 | 830 | 1,639 | 1,629 |
Expenses | ||||
Policyholder benefits and claims | 563 | 596 | 1,102 | 1,167 |
Policyholder dividends | 231 | 238 | 459 | 482 |
Other expenses | 28 | 30 | 57 | 59 |
Total expenses | 822 | 864 | 1,618 | 1,708 |
Revenues, net of expenses before provision for income tax expense (benefit) | 20 | (34) | 21 | (79) |
Provision for income tax expense (benefit) | 4 | (7) | 4 | (17) |
Revenues, net of expenses and provision for income tax expense (benefit) | $ 16 | $ (27) | $ 17 | $ (62) |
Investments (Fixed Maturity Sec
Investments (Fixed Maturity Securities Available-For-Sale by Sector) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Cost or Amortized Cost | $ 152,346 | $ 155,175 |
Gross Unrealized OTTI Loss | 36 | 25 |
Estimated Fair Value of Fixed Maturity Securities AFS | 165,102 | 159,073 |
Fixed Maturity Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross Unrealized Gain | 13,920 | 7,736 |
Gross Unrealized Temporary Loss | 1,200 | 3,863 |
Gross Unrealized OTTI Loss | (36) | (25) |
U.S. corporate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost or Amortized Cost | 52,042 | 53,927 |
Gross Unrealized Gain | 5,084 | 2,440 |
Gross Unrealized Temporary Loss | 300 | 1,565 |
Gross Unrealized OTTI Loss | 0 | 0 |
Estimated Fair Value of Fixed Maturity Securities AFS | 56,826 | 54,802 |
U.S. government and agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost or Amortized Cost | 25,195 | 28,139 |
Gross Unrealized Gain | 3,483 | 2,388 |
Gross Unrealized Temporary Loss | 22 | 366 |
Gross Unrealized OTTI Loss | 0 | 0 |
Estimated Fair Value of Fixed Maturity Securities AFS | 28,656 | 30,161 |
Foreign corporate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost or Amortized Cost | 27,852 | 26,592 |
Gross Unrealized Gain | 1,787 | 674 |
Gross Unrealized Temporary Loss | 694 | 1,303 |
Gross Unrealized OTTI Loss | 0 | 0 |
Estimated Fair Value of Fixed Maturity Securities AFS | 28,945 | 25,963 |
RMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost or Amortized Cost | 22,187 | 22,186 |
Gross Unrealized Gain | 1,261 | 831 |
Gross Unrealized Temporary Loss | 76 | 305 |
Gross Unrealized OTTI Loss | (36) | (25) |
Estimated Fair Value of Fixed Maturity Securities AFS | 23,408 | 22,737 |
ABS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost or Amortized Cost | 9,449 | 8,599 |
Gross Unrealized Gain | 52 | 40 |
Gross Unrealized Temporary Loss | 49 | 112 |
Gross Unrealized OTTI Loss | 0 | 0 |
Estimated Fair Value of Fixed Maturity Securities AFS | 9,452 | 8,527 |
Municipals | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost or Amortized Cost | 5,983 | 6,070 |
Gross Unrealized Gain | 1,390 | 907 |
Gross Unrealized Temporary Loss | 0 | 30 |
Gross Unrealized OTTI Loss | 0 | 0 |
Estimated Fair Value of Fixed Maturity Securities AFS | 7,373 | 6,947 |
CMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost or Amortized Cost | 5,396 | 5,471 |
Gross Unrealized Gain | 222 | 48 |
Gross Unrealized Temporary Loss | 16 | 75 |
Gross Unrealized OTTI Loss | 0 | 0 |
Estimated Fair Value of Fixed Maturity Securities AFS | 5,602 | 5,444 |
Foreign government | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost or Amortized Cost | 4,242 | 4,191 |
Gross Unrealized Gain | 641 | 408 |
Gross Unrealized Temporary Loss | 43 | 107 |
Gross Unrealized OTTI Loss | 0 | 0 |
Estimated Fair Value of Fixed Maturity Securities AFS | $ 4,840 | $ 4,492 |
Investments (Maturities of Fixe
Investments (Maturities of Fixed Maturity Securities) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Available-for-sale Securities, Debt Maturities [Abstract] | ||
Amortized Cost, Due in one year or less | $ 9,778 | |
Amortized Cost, Due after one year through five years | 25,123 | |
Amortized Cost, Due after five years through ten years | 25,828 | |
Amortized Cost, Due after ten years | 54,585 | |
Amortized Cost, Structured Securities | 37,032 | |
Amortized Cost, Subtotal | 152,346 | $ 155,175 |
Estimated Fair Value, Due in one year or less | 9,734 | |
Estimated Fair Value, Due after one year through five years | 25,726 | |
Estimated Fair Value, Due after five years through ten years | 27,617 | |
Estimated Fair Value, Due after ten years | 63,563 | |
Estimated Fair Value, Structured Securities | 38,462 | |
Estimated Fair Value of Fixed Maturity Securities AFS | $ 165,102 | $ 159,073 |
Investments (Continuous Gross U
Investments (Continuous Gross Unrealized Losses for Fixed Maturity Securities Available-For-Sale) (Details) $ in Millions | Jun. 30, 2019USD ($) | Dec. 31, 2018USD ($) |
Debt Securities, Available-for-sale [Line Items] | ||
Total number of securities in an unrealized loss position less than 12 months | 1,208 | 5,263 |
Total number of securities in an unrealized loss position equal to or greater than 12 months | 1,042 | 1,125 |
Fixed Maturity Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months Estimated Fair Value | $ 12,168 | $ 56,694 |
Less than 12 months Gross Unrealized Loss | 256 | 2,460 |
Equal to or Greater than 12 Months Estimated Fair Value | 14,847 | 18,463 |
Equal to or Greater than 12 Months Gross Unrealized Loss | 908 | 1,378 |
U.S. corporate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months Estimated Fair Value | 3,379 | 23,398 |
Less than 12 months Gross Unrealized Loss | 91 | 1,176 |
Equal to or Greater than 12 Months Estimated Fair Value | 3,005 | 3,043 |
Equal to or Greater than 12 Months Gross Unrealized Loss | 209 | 389 |
U.S. government and agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months Estimated Fair Value | 1,483 | 4,322 |
Less than 12 months Gross Unrealized Loss | 1 | 29 |
Equal to or Greater than 12 Months Estimated Fair Value | 2,270 | 7,948 |
Equal to or Greater than 12 Months Gross Unrealized Loss | 21 | 337 |
Foreign corporate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months Estimated Fair Value | 1,976 | 12,911 |
Less than 12 months Gross Unrealized Loss | 119 | 893 |
Equal to or Greater than 12 Months Estimated Fair Value | 4,955 | 2,138 |
Equal to or Greater than 12 Months Gross Unrealized Loss | 575 | 410 |
RMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months Estimated Fair Value | 1,154 | 5,611 |
Less than 12 months Gross Unrealized Loss | 13 | 107 |
Equal to or Greater than 12 Months Estimated Fair Value | 2,420 | 4,482 |
Equal to or Greater than 12 Months Gross Unrealized Loss | 27 | 173 |
ABS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months Estimated Fair Value | 3,718 | 5,958 |
Less than 12 months Gross Unrealized Loss | 28 | 105 |
Equal to or Greater than 12 Months Estimated Fair Value | 1,636 | 223 |
Equal to or Greater than 12 Months Gross Unrealized Loss | 21 | 7 |
Municipals | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months Estimated Fair Value | 21 | 675 |
Less than 12 months Gross Unrealized Loss | 0 | 22 |
Equal to or Greater than 12 Months Estimated Fair Value | 16 | 94 |
Equal to or Greater than 12 Months Gross Unrealized Loss | 0 | 8 |
CMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months Estimated Fair Value | 381 | 2,455 |
Less than 12 months Gross Unrealized Loss | 1 | 45 |
Equal to or Greater than 12 Months Estimated Fair Value | 265 | 344 |
Equal to or Greater than 12 Months Gross Unrealized Loss | 15 | 30 |
Foreign government | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months Estimated Fair Value | 56 | 1,364 |
Less than 12 months Gross Unrealized Loss | 3 | 83 |
Equal to or Greater than 12 Months Estimated Fair Value | 280 | 191 |
Equal to or Greater than 12 Months Gross Unrealized Loss | $ 40 | $ 24 |
Investments (Equity Securities)
Investments (Equity Securities) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Equity securities | $ 805 | $ 773 |
Percentage of Equity Securities | 100.00% | 100.00% |
Equity securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Equity securities | $ 805 | $ 773 |
Common Stock | ||
Debt Securities, Available-for-sale [Line Items] | ||
Equity securities | $ 472 | $ 442 |
Percentage of Equity Securities | 58.60% | 57.20% |
Non-redeemable Preferred Stock | ||
Debt Securities, Available-for-sale [Line Items] | ||
Equity securities | $ 333 | $ 331 |
Percentage of Equity Securities | 41.40% | 42.80% |
Investments (Mortgage Loans by
Investments (Mortgage Loans by Portfolio Segment) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Mortgage Loans, Gross | $ 64,709 | $ 63,679 | ||
Percentage Of Mortgage Loans Held For Investment To Mortgage Loans On Real Estate Commercial And Consumer Net | 100.10% | 100.00% | ||
Allowance for Loan and Lease Losses, Real Estate | $ 300 | $ 291 | $ 279 | $ 271 |
Percentage Of Allowance For Loan And Lease Losses Real Estate To Mortgage Loans On Real Estate Commercial And Consumer Net | (0.50%) | (0.50%) | ||
Loans and Leases Receivable, Net Amount | $ 64,409 | $ 63,388 | ||
Percentage Of Mortgage Loans Held For Investment Net To Mortgage Loans On Real Estate Commercial And Consumer Net | 99.60% | 99.50% | ||
Mortgage Loans on Real Estate, Commercial and Consumer, Net | $ 64,671 | $ 63,687 | ||
Percentage Of Loans And Leases Receivable Consumer Other To Mortgage Loans On Real Estate Commercial And Consumer Net | 0.40% | 0.50% | ||
Percentage Of Mortgage Loans On Real Estate To Mortgage Loans On Real Estate Commercial And Consumer Net | 100.00% | 100.00% | ||
Residential mortgage loans - FVO | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Mortgage Loans on Real Estate, Commercial and Consumer, Net | $ 262 | $ 299 | ||
Agricultural Mortgage Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Mortgage Loans, Gross | $ 14,523 | $ 14,164 | ||
Percentage Of Mortgage Loans, Gross | 22.50% | 22.20% | ||
Allowance for Loan and Lease Losses, Real Estate | $ 46 | $ 44 | 40 | 40 |
Commercial Mortgage Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Mortgage Loans, Gross | $ 38,270 | $ 38,123 | ||
Percentage Of Mortgage Loans, Gross | 59.20% | 59.90% | ||
Allowance for Loan and Lease Losses, Real Estate | $ 193 | $ 190 | 183 | 173 |
Residential Mortgage Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Mortgage Loans, Gross | $ 11,916 | $ 11,392 | ||
Percentage Of Mortgage Loans, Gross | 18.40% | 17.90% | ||
Allowance for Loan and Lease Losses, Real Estate | $ 61 | $ 57 | $ 56 | $ 58 |
Investments (Mortgage Loans and
Investments (Mortgage Loans and Valuation Allowance by Portfolio Segment) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | $ 31 | $ 31 |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 31 | 31 |
Impaired Financing Receivable, Related Allowance | 3 | 3 |
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 695 | 600 |
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 593 | 555 |
Financing Receivable, Collectively Evaluated for Impairment | 64,085 | 63,093 |
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 297 | 288 |
Impaired Financing Receivable, Recorded Investment | 621 | 583 |
Agricultural Mortgage Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 31 | 31 |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 31 | 31 |
Impaired Financing Receivable, Related Allowance | 3 | 3 |
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 191 | 169 |
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 190 | 169 |
Financing Receivable, Collectively Evaluated for Impairment | 14,302 | 13,964 |
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 43 | 41 |
Impaired Financing Receivable, Recorded Investment | 218 | 197 |
Commercial Mortgage Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 0 | 0 |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 0 | 0 |
Impaired Financing Receivable, Related Allowance | 0 | 0 |
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 0 | 0 |
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 0 | 0 |
Financing Receivable, Collectively Evaluated for Impairment | 38,270 | 38,123 |
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 193 | 190 |
Impaired Financing Receivable, Recorded Investment | 0 | 0 |
Residential Mortgage Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 0 | 0 |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 0 | 0 |
Impaired Financing Receivable, Related Allowance | 0 | 0 |
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 504 | 431 |
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 403 | 386 |
Financing Receivable, Collectively Evaluated for Impairment | 11,513 | 11,006 |
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 61 | 57 |
Impaired Financing Receivable, Recorded Investment | $ 403 | $ 386 |
Investments (Valuation Allowanc
Investments (Valuation Allowance Rollforward by Portfolio Segment) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Balance, beginning of period | $ 291 | $ 271 |
Provision (release) | 13 | 12 |
Charge-offs, net of recoveries | (4) | (4) |
Balance, end of period | 300 | 279 |
Agricultural Mortgage Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Balance, beginning of period | 44 | 40 |
Provision (release) | 2 | 0 |
Charge-offs, net of recoveries | 0 | 0 |
Balance, end of period | 46 | 40 |
Commercial Mortgage Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Balance, beginning of period | 190 | 173 |
Provision (release) | 3 | 10 |
Charge-offs, net of recoveries | 0 | 0 |
Balance, end of period | 193 | 183 |
Residential Mortgage Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Balance, beginning of period | 57 | 58 |
Provision (release) | 8 | 2 |
Charge-offs, net of recoveries | (4) | (4) |
Balance, end of period | $ 61 | $ 56 |
Investments (Credit Quality of
Investments (Credit Quality of Commercial Mortgage Loans) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Mortgage Loans, Gross | $ 64,709 | $ 63,679 |
Loans Receivable Commercial Mortgage Percentage | 100.00% | 100.00% |
Estimated Fair Value Commercial Mortgage Percentage | 100.00% | 100.00% |
Less than 65% | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Receivable Commercial Mortgage Percentage | 84.40% | 84.20% |
Estimated Fair Value Commercial Mortgage Percentage | 84.60% | 84.30% |
65% to 75% | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Receivable Commercial Mortgage Percentage | 12.30% | 12.50% |
Estimated Fair Value Commercial Mortgage Percentage | 12.30% | 12.60% |
76% to 80% | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Receivable Commercial Mortgage Percentage | 1.50% | 1.60% |
Estimated Fair Value Commercial Mortgage Percentage | 1.40% | 1.50% |
Greater than 80% | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Receivable Commercial Mortgage Percentage | 1.80% | 1.70% |
Estimated Fair Value Commercial Mortgage Percentage | 1.70% | 1.60% |
Commercial Mortgage Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Mortgage Loans, Gross | $ 38,270 | $ 38,123 |
Fair Value Mortgage Loans Net Not On Recurring Basis | 39,524 | 38,467 |
Commercial Mortgage Loans | Greater than 1.20x | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Mortgage Loans, Gross | 36,868 | 36,861 |
Commercial Mortgage Loans | 1.00x - 1.20x | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Mortgage Loans, Gross | 1,043 | 1,100 |
Commercial Mortgage Loans | Less than 1.00x | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Mortgage Loans, Gross | 359 | 162 |
Commercial Mortgage Loans | Less than 65% | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Mortgage Loans, Gross | 32,293 | 32,090 |
Fair Value Mortgage Loans Net Not On Recurring Basis | 33,456 | 32,440 |
Commercial Mortgage Loans | Less than 65% | Greater than 1.20x | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Mortgage Loans, Gross | 31,529 | 31,282 |
Commercial Mortgage Loans | Less than 65% | 1.00x - 1.20x | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Mortgage Loans, Gross | 612 | 723 |
Commercial Mortgage Loans | Less than 65% | Less than 1.00x | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Mortgage Loans, Gross | 152 | 85 |
Commercial Mortgage Loans | 65% to 75% | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Mortgage Loans, Gross | 4,726 | 4,780 |
Fair Value Mortgage Loans Net Not On Recurring Basis | 4,849 | 4,829 |
Commercial Mortgage Loans | 65% to 75% | Greater than 1.20x | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Mortgage Loans, Gross | 4,548 | 4,759 |
Commercial Mortgage Loans | 65% to 75% | 1.00x - 1.20x | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Mortgage Loans, Gross | 26 | 0 |
Commercial Mortgage Loans | 65% to 75% | Less than 1.00x | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Mortgage Loans, Gross | 152 | 21 |
Commercial Mortgage Loans | 76% to 80% | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Mortgage Loans, Gross | 574 | 606 |
Fair Value Mortgage Loans Net Not On Recurring Basis | 566 | 585 |
Commercial Mortgage Loans | 76% to 80% | Greater than 1.20x | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Mortgage Loans, Gross | 309 | 340 |
Commercial Mortgage Loans | 76% to 80% | 1.00x - 1.20x | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Mortgage Loans, Gross | 210 | 210 |
Commercial Mortgage Loans | 76% to 80% | Less than 1.00x | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Mortgage Loans, Gross | 55 | 56 |
Commercial Mortgage Loans | Greater than 80% | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Mortgage Loans, Gross | 677 | 647 |
Fair Value Mortgage Loans Net Not On Recurring Basis | 653 | 613 |
Commercial Mortgage Loans | Greater than 80% | Greater than 1.20x | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Mortgage Loans, Gross | 482 | 480 |
Commercial Mortgage Loans | Greater than 80% | 1.00x - 1.20x | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Mortgage Loans, Gross | 195 | 167 |
Commercial Mortgage Loans | Greater than 80% | Less than 1.00x | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Mortgage Loans, Gross | $ 0 | $ 0 |
Investments (Credit Quality o_2
Investments (Credit Quality of Agricultural and Residential Mortgage Loans) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Mortgage Loans, Gross | $ 64,709 | $ 63,679 |
Loans Receivable Agricultural Mortgage Percentage | 100.00% | 100.00% |
Loans Receivable Residential Mortgage Percentage | 100.00% | 100.00% |
Mortgage Loans in Process of Foreclosure, Amount | $ 123 | $ 140 |
Less than 65% | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Receivable Agricultural Mortgage Percentage | 93.30% | 92.30% |
65% to 75% | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Receivable Agricultural Mortgage Percentage | 6.00% | 7.30% |
76% to 80% | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Receivable Agricultural Mortgage Percentage | 0.50% | 0.20% |
Greater than 80% | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Receivable Agricultural Mortgage Percentage | 0.20% | 0.20% |
Performing | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Receivable Residential Mortgage Percentage | 97.00% | 96.50% |
Nonperforming | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Receivable Residential Mortgage Percentage | 3.00% | 3.50% |
Residential Mortgage Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Mortgage Loans, Gross | $ 11,916 | $ 11,392 |
Residential Mortgage Loans | Performing | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Mortgage Loans, Gross | 11,555 | 10,990 |
Residential Mortgage Loans | Nonperforming | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Mortgage Loans, Gross | 361 | 402 |
Agricultural Mortgage Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Mortgage Loans, Gross | 14,523 | 14,164 |
Agricultural Mortgage Loans | Less than 65% | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Mortgage Loans, Gross | 13,555 | 13,075 |
Agricultural Mortgage Loans | 65% to 75% | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Mortgage Loans, Gross | 876 | 1,034 |
Agricultural Mortgage Loans | 76% to 80% | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Mortgage Loans, Gross | 69 | 32 |
Agricultural Mortgage Loans | Greater than 80% | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Mortgage Loans, Gross | $ 23 | $ 23 |
Investments (Past Due and Inter
Investments (Past Due and Interest Accrual Status of Mortgage Loans) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past Due | $ 495 | $ 606 |
Greater than 90 Days Past Due and Still Accruing Interest | 52 | 109 |
Nonaccrual | 633 | 674 |
Agricultural Mortgage Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past Due | 134 | 204 |
Greater than 90 Days Past Due and Still Accruing Interest | 52 | 109 |
Nonaccrual | 105 | 105 |
Commercial Mortgage Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past Due | 0 | 0 |
Greater than 90 Days Past Due and Still Accruing Interest | 0 | 0 |
Nonaccrual | 167 | 167 |
Residential Mortgage Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past Due | 361 | 402 |
Greater than 90 Days Past Due and Still Accruing Interest | 0 | 0 |
Nonaccrual | $ 361 | $ 402 |
Investments (Real Estate and Re
Investments (Real Estate and Real Estate Joint Ventures) (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 | |
Real Estate [Line Items] | |||||
Leased real estate investments, Carrying Value | $ 1,246 | $ 1,246 | $ 1,134 | ||
Other real estate investments, Carrying Value | 477 | 477 | 460 | ||
Real estate joint ventures, Carrying Value | 4,691 | 4,691 | 4,558 | ||
Real Estate Investments, Net | 6,414 | 6,414 | $ 6,152 | ||
Real estate and real estate joint ventures | |||||
Real Estate [Line Items] | |||||
Gross Investment Income, Operating | 113 | $ 142 | 179 | $ 253 | |
Leased real estate investments | |||||
Real Estate [Line Items] | |||||
Operating Lease, Lease Income | 40 | 57 | 81 | 113 | |
Other real estate investments | |||||
Real Estate [Line Items] | |||||
Operating Lease, Lease Income | 50 | 53 | 80 | 84 | |
Real estate joint ventures | |||||
Real Estate [Line Items] | |||||
Income (Loss) from Equity Method Investments | $ 23 | $ 32 | $ 18 | $ 56 |
Investments (Leased Real Estate
Investments (Leased Real Estate Investments - Operating Leases) (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 | |
Schedule of Operating Leases by Property Type [Line Items] | |||||
Leased real estate investments, Carrying Value | $ 1,246 | $ 1,246 | $ 1,134 | ||
Office | |||||
Schedule of Operating Leases by Property Type [Line Items] | |||||
Leased real estate investments, Carrying Value | 373 | 373 | 373 | ||
Operating Lease, Lease Income | 12 | $ 18 | 26 | $ 34 | |
Retail | |||||
Schedule of Operating Leases by Property Type [Line Items] | |||||
Leased real estate investments, Carrying Value | 532 | 532 | 450 | ||
Operating Lease, Lease Income | 18 | 15 | 35 | 33 | |
Apartment (1) | |||||
Schedule of Operating Leases by Property Type [Line Items] | |||||
Leased real estate investments, Carrying Value | 0 | 0 | 0 | ||
Operating Lease, Lease Income | 0 | 16 | 0 | 29 | |
Industrial | |||||
Schedule of Operating Leases by Property Type [Line Items] | |||||
Leased real estate investments, Carrying Value | 262 | 262 | 209 | ||
Operating Lease, Lease Income | 10 | 8 | 20 | 17 | |
Other | |||||
Schedule of Operating Leases by Property Type [Line Items] | |||||
Leased real estate investments, Carrying Value | 79 | 79 | $ 102 | ||
Operating Lease, Lease Income | 0 | 0 | 0 | 0 | |
Leased real estate investments | |||||
Schedule of Operating Leases by Property Type [Line Items] | |||||
Operating Lease, Lease Income | $ 40 | $ 57 | $ 81 | $ 113 |
Investments (Components of Leve
Investments (Components of Leveraged and Direct Financing Leases) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Investments, Debt and Equity Securities [Abstract] | ||
Leveraged Leases, Net Investment in Leveraged Leases Disclosure, Rental Receivables, Net | $ 707 | $ 715 |
Leveraged Leases, Net Investment in Leveraged Leases Disclosure, Residual Value of Leased Assets | 618 | 618 |
Investment In Leveraged Leases | 1,325 | 1,333 |
Leveraged Leases, Net Investment in Leveraged Leases Disclosure, Deferred Income | (383) | (401) |
Leveraged Leases, Net Investment in Leveraged Leases Disclosure, Investment in Leveraged Leases, Net | 942 | 932 |
Direct Financing Lease, Lease Receivable | 244 | 256 |
Direct Financing Lease, Unguaranteed Residual Asset | 42 | 42 |
Investment In Direct Financing Leases | 286 | 298 |
Direct Financing Lease, Deferred Selling Profit | (91) | (100) |
Direct Financing Lease, Net Investment in Lease | 195 | $ 198 |
Capital Leases, Future Minimum Payments Receivable, Next Twelve Months | 11 | |
Capital Leases, Future Minimum Payments, Receivable in Two Years | 21 | |
Capital Leases, Future Minimum Payments, Receivable in Three Years | 21 | |
Capital Leases, Future Minimum Payments, Receivable in Four Years | 21 | |
Capital Leases, Future Minimum Payments, Receivable in Five Years | 21 | |
Capital Leases, Future Minimum Payments, Receivable Thereafter | 149 | |
Capital Leases, Future Minimum Payments Receivable | $ 244 |
Investments (Net Unrealized Inv
Investments (Net Unrealized Investment Gains Losses) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Components of net unrealized investment gains (losses) included in accumulated other comprehensive loss | ||
Fixed maturity securities AFS | $ 12,733 | $ 3,890 |
Fixed maturity securities AFS with noncredit OTTI losses included in AOCI | 36 | 25 |
Total fixed maturity securities AFS | 12,769 | 3,915 |
Derivatives | 2,292 | 1,742 |
Other | 162 | 231 |
Subtotal | 15,223 | 5,888 |
Future policy benefits | (641) | (5) |
DAC, VOBA and DSI | (979) | (571) |
Policyholder dividend obligation | (1,834) | (428) |
Subtotal | (3,454) | (1,004) |
Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI | (7) | (5) |
Deferred income tax benefit (expense) | (2,436) | (982) |
Net unrealized investment gains (losses) | $ 9,326 | $ 3,897 |
Investments (Changes in Net Unr
Investments (Changes in Net Unrealized Investment Gains Losses) (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Changes In Net Unrealized Investment Gains Losses Included In Accumulated Other Comprehensive Loss [Abstract] | |
Balance, beginning of period | $ 3,897 |
Cumulative effects of changes in accounting principles, net of income tax | 17 |
Fixed maturity securities AFS on which noncredit OTTI losses have been recognized | 11 |
Unrealized investment gains (losses) during the period | 9,302 |
Unrealized investment gains (losses) relating to: | |
Future policy benefits | (636) |
DAC, VOBA and DSI | (408) |
Policyholder dividend obligation | (1,406) |
Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI | (2) |
Deferred income tax benefit (expense) | (1,449) |
Balance, end of period | 9,326 |
Change in net unrealized investment gains (losses) | $ 5,429 |
Investments (Securities Lending
Investments (Securities Lending and Repurchase Agreements) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Securities Financing Transaction [Line Items] | ||
Cash collateral received from counterparties | $ 12,778 | $ 13,351 |
Reinvestment portfolio — estimated fair value | 12,936 | 13,376 |
Security collateral on deposit from counterparties | 8 | 64 |
Amortized cost | ||
Securities Financing Transaction [Line Items] | ||
Securities loaned | 11,061 | 12,521 |
Estimated fair value | ||
Securities Financing Transaction [Line Items] | ||
Securities loaned | 12,500 | 13,138 |
Repurchase Agreements | ||
Securities Financing Transaction [Line Items] | ||
Cash collateral received from counterparties | 1,535 | 1,000 |
Reinvestment portfolio — estimated fair value | 1,553 | 1,001 |
Repurchase Agreements | Amortized cost | ||
Securities Financing Transaction [Line Items] | ||
Securities Sold under Agreements to Repurchase | 1,458 | 974 |
Repurchase Agreements | Estimated fair value | ||
Securities Financing Transaction [Line Items] | ||
Securities Sold under Agreements to Repurchase | $ 1,565 | $ 1,020 |
Investments (Securities Lendi_2
Investments (Securities Lending and Repurchase Agreements Remaining Tenor) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Securities Financing Transaction [Line Items] | ||
Transfers Accounted for as Secured Borrowings, Associated Liabilities, Carrying Amount | $ 12,778 | $ 13,351 |
U.S. government and agency | ||
Securities Financing Transaction [Line Items] | ||
Transfers Accounted for as Secured Borrowings, Associated Liabilities, Carrying Amount | 12,778 | 13,351 |
Open (1) | U.S. government and agency | ||
Securities Financing Transaction [Line Items] | ||
Transfers Accounted for as Secured Borrowings, Associated Liabilities, Carrying Amount | 2,168 | 1,970 |
1 Month or Less | U.S. government and agency | ||
Securities Financing Transaction [Line Items] | ||
Transfers Accounted for as Secured Borrowings, Associated Liabilities, Carrying Amount | 3,137 | 7,426 |
Over 1 to 6 Months | U.S. government and agency | ||
Securities Financing Transaction [Line Items] | ||
Transfers Accounted for as Secured Borrowings, Associated Liabilities, Carrying Amount | 7,473 | 3,955 |
Securities Financing Transaction, Fair Value | U.S. government and agency | ||
Securities Financing Transaction [Line Items] | ||
Securities Loaned, Not Subject to Master Netting Arrangement | 2,100 | |
Repurchase Agreements | ||
Securities Financing Transaction [Line Items] | ||
Transfers Accounted for as Secured Borrowings, Associated Liabilities, Carrying Amount | 1,535 | 1,000 |
Repurchase Agreements | U.S. government and agency | ||
Securities Financing Transaction [Line Items] | ||
Transfers Accounted for as Secured Borrowings, Associated Liabilities, Carrying Amount | 1,535 | 1,000 |
Repurchase Agreements | Open (1) | U.S. government and agency | ||
Securities Financing Transaction [Line Items] | ||
Transfers Accounted for as Secured Borrowings, Associated Liabilities, Carrying Amount | 0 | 0 |
Repurchase Agreements | 1 Month or Less | U.S. government and agency | ||
Securities Financing Transaction [Line Items] | ||
Transfers Accounted for as Secured Borrowings, Associated Liabilities, Carrying Amount | 1,535 | 1,000 |
Repurchase Agreements | Over 1 to 6 Months | U.S. government and agency | ||
Securities Financing Transaction [Line Items] | ||
Transfers Accounted for as Secured Borrowings, Associated Liabilities, Carrying Amount | $ 0 | $ 0 |
Investments (Invested Assets on
Investments (Invested Assets on Deposit, Held In Trust and Pledged as Collateral) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Investments, Debt and Equity Securities [Abstract] | ||
Invested assets on deposit (regulatory deposits) | $ 47 | $ 47 |
Invested assets pledged as collateral | 20,756 | 20,207 |
Total invested assets on deposit and pledged as collateral | $ 20,803 | $ 20,254 |
Investments (Consolidated Varia
Investments (Consolidated Variable Interest Entities) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Variable Interest Entity [Line Items] | ||
Total Assets | $ 1,756 | $ 1,736 |
Total Liabilities | 5 | 5 |
Real estate joint ventures | ||
Variable Interest Entity [Line Items] | ||
Total Assets | 1,409 | 1,394 |
Total Liabilities | 0 | 0 |
Renewable energy partnership | ||
Variable Interest Entity [Line Items] | ||
Total Assets | 99 | 102 |
Total Liabilities | 0 | 0 |
Investment fund (primarily mortgage loans) | ||
Variable Interest Entity [Line Items] | ||
Total Assets | 228 | 219 |
Total Liabilities | 0 | 0 |
Other | ||
Variable Interest Entity [Line Items] | ||
Total Assets | 20 | 21 |
Total Liabilities | 5 | 5 |
Affiliated Entity | Real estate joint ventures | ||
Variable Interest Entity [Line Items] | ||
Total Assets | 130 | 123 |
Affiliated Entity | Mortgage loans | ||
Variable Interest Entity [Line Items] | ||
Total Assets | 42 | 41 |
Parent Company | Real estate joint ventures | ||
Variable Interest Entity [Line Items] | ||
Total Assets | 1,300 | 1,300 |
Parent Company | Mortgage loans | ||
Variable Interest Entity [Line Items] | ||
Total Assets | $ 186 | $ 178 |
Investments (Unconsolidated Var
Investments (Unconsolidated Variable Interest Entities) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Variable Interest Entity [Line Items] | ||
Carrying Amount Asset | $ 43,753 | $ 41,707 |
Carrying Amount Liability | 46,684 | 44,289 |
Tax Credits Guaranteed By Third Parties Amount That Reduces Maximum Exposure To Loss Related To Other Invested Assets | 73 | 93 |
Other limited partnership interests | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount Asset | 4,141 | 3,979 |
Carrying Amount Liability | 6,959 | 6,405 |
Other invested assets | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount Asset | 1,796 | 1,914 |
Carrying Amount Liability | 1,905 | 2,066 |
Real estate joint ventures | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount Asset | 25 | 33 |
Carrying Amount Liability | 29 | 37 |
Structured securities (RMBS, CMBS, and ABS) | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount Asset | 36,871 | 35,112 |
Carrying Amount Liability | 36,871 | 35,112 |
U.S. and foreign corporate | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount Asset | 920 | 669 |
Carrying Amount Liability | $ 920 | $ 669 |
Investments (Net Investment Inc
Investments (Net Investment Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Net Investment Income [Line Items] | ||||
Less: Investment expenses | $ 265 | $ 240 | $ 524 | $ 442 |
Net investment income | 2,794 | 2,684 | 5,439 | 5,385 |
Fixed maturity securities AFS | ||||
Net Investment Income [Line Items] | ||||
Gross Investment Income, Operating | 1,780 | 1,816 | 3,548 | 3,601 |
Equity securities | ||||
Net Investment Income [Line Items] | ||||
Gross Investment Income, Operating | 10 | 10 | 19 | 21 |
Mortgage loans | ||||
Net Investment Income [Line Items] | ||||
Gross Investment Income, Operating | 786 | 688 | 1,550 | 1,359 |
Policy loans | ||||
Net Investment Income [Line Items] | ||||
Gross Investment Income, Operating | 77 | 73 | 153 | 145 |
Real estate and real estate joint ventures | ||||
Net Investment Income [Line Items] | ||||
Gross Investment Income, Operating | 113 | 142 | 179 | 253 |
Other limited partnership interests | ||||
Net Investment Income [Line Items] | ||||
Gross Investment Income, Operating | 173 | 88 | 258 | 235 |
Cash, cash equivalents and short-term investments | ||||
Net Investment Income [Line Items] | ||||
Gross Investment Income, Operating | 44 | 29 | 87 | 49 |
FVO securities - FVO general account securities | ||||
Net Investment Income [Line Items] | ||||
Gross Investment Income, Operating | 10 | 0 | 33 | 0 |
FVO securities, Change in Unrealized Holding Gain (Loss) | 10 | 33 | ||
Operating joint venture | ||||
Net Investment Income [Line Items] | ||||
Gross Investment Income, Operating | 34 | 14 | 45 | 21 |
Other | ||||
Net Investment Income [Line Items] | ||||
Gross Investment Income, Operating | 32 | 64 | 91 | 143 |
Securities investment | ||||
Net Investment Income [Line Items] | ||||
Gross Investment Income, Operating | $ 3,059 | $ 2,924 | $ 5,963 | $ 5,827 |
Investments (Components of Net
Investments (Components of Net Investment Gains Losses) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Marketable Securities, Gain (Loss) [Abstract] | ||||
Fixed maturity securities AFS — net gains (losses) on sales and disposals | $ 81 | $ (64) | $ 49 | $ (109) |
Equity securities — net gains (losses) on sales and disposals | 2 | 8 | 11 | 8 |
Change In Estimated Fair Value Of Equity Securities | (12) | 0 | 45 | (39) |
Other net investment gains (losses): | ||||
Mortgage loans | 18 | (12) | 4 | (33) |
Real estate and real estate joint ventures | (1) | 75 | 2 | 100 |
Gains Losses On Sales Of Other Limited Partnerships | 0 | 8 | 0 | 8 |
Other (2) (3) | (9) | (73) | (59) | (179) |
Subtotal | 79 | (58) | 44 | (244) |
Change In Estimated Fair Value Of Other Limited Partnership Interests And Real Estate Joint Ventures | 4 | (1) | (12) | (7) |
Non-investment portfolio gains (losses) | (17) | 29 | (20) | 25 |
Subtotal | (13) | 28 | (32) | 18 |
Total net investment gains (losses) | 66 | (30) | 12 | (226) |
Changes In Estimated Fair Value Subsequent To Purchase For Equity Securities | (10) | 7 | 42 | (30) |
Industrial | ||||
Marketable Securities, Gain (Loss) [Abstract] | ||||
Total OTTI losses recognized in earnings | 0 | 0 | (6) | 0 |
U.S. and foreign corporate | ||||
Marketable Securities, Gain (Loss) [Abstract] | ||||
Total OTTI losses recognized in earnings | 0 | 0 | (6) | 0 |
RMBS | ||||
Marketable Securities, Gain (Loss) [Abstract] | ||||
Total OTTI losses recognized in earnings | 0 | 0 | (2) | 0 |
Fixed Maturity Securities | ||||
Marketable Securities, Gain (Loss) [Abstract] | ||||
Total OTTI losses recognized in earnings | 0 | 0 | (8) | 0 |
Net investment gains (losses) | 81 | (64) | 41 | (109) |
Equity securities | ||||
Marketable Securities, Gain (Loss) [Abstract] | ||||
Net investment gains (losses) | (10) | 8 | 56 | (31) |
Lease agreement | ||||
Marketable Securities, Gain (Loss) [Abstract] | ||||
Total OTTI losses recognized in earnings | (105) | |||
Tax credit partnerships | ||||
Marketable Securities, Gain (Loss) [Abstract] | ||||
Total OTTI losses recognized in earnings | $ (14) | (92) | ||
Partnership Interest | ||||
Marketable Securities, Gain (Loss) [Abstract] | ||||
Total OTTI losses recognized in earnings | $ (83) | $ (83) | ||
Other net investment gains (losses): | ||||
Other (2) (3) | $ 46 |
Investments (Sales or Disposals
Investments (Sales or Disposals and Impairments of Fixed Maturity AFS) (Details) - Fixed Maturity Securities - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Debt Securities, Available-for-sale [Line Items] | ||||
Proceeds | $ 10,194 | $ 11,585 | $ 20,859 | $ 24,840 |
Gross investment gains | 169 | 40 | 304 | 91 |
Gross investment losses | (88) | (104) | (255) | (200) |
Total OTTI losses recognized in earnings | 0 | 0 | (8) | 0 |
Net investment gains (losses) | $ 81 | $ (64) | $ 41 | $ (109) |
Investments (Credit Loss Rollfo
Investments (Credit Loss Rollforward) (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 [Roll Forward] | ||||
Balance, beginning of period | $ 66 | $ 104 | $ 70 | $ 110 |
Sales (maturities, pay downs or prepayments) of securities previously impaired as credit loss OTTI | (8) | (11) | (11) | (17) |
Other than Temporary Impairment, Credit Losses Recognized in Earnings, Reductions, Cash Flows | 0 | (1) | (1) | (1) |
Balance, end of period | $ 58 | $ 92 | $ 58 | $ 92 |
Investments (Recurring Related
Investments (Recurring Related Party Investments) (Details) $ in Millions, ¥ in Billions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019JPY (¥) | Dec. 31, 2018USD ($) | |
Related Party Transaction [Line Items] | ||||||
Other invested assets relating to variable interest entities | $ 16,840 | $ 16,840 | $ 15,690 | |||
Short-term investments | 1,127 | 1,127 | 1,506 | |||
Metlife Inc | ||||||
Related Party Transaction [Line Items] | ||||||
Other invested assets relating to variable interest entities | 1,834 | 1,834 | 1,798 | |||
Related Party Transaction, Other Revenues from Transactions with Related Party | $ 9 | $ 4 | $ 17 | $ 15 | ||
Metlife Inc | Minimum | ||||||
Related Party Transaction [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 0.82% | 0.82% | 0.82% | |||
Debt Instrument, Maturity Date | Oct. 31, 2019 | |||||
Metlife Inc | Maximum | ||||||
Related Party Transaction [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.14% | 3.14% | 3.14% | |||
Debt Instrument, Maturity Date | Jul. 31, 2026 | |||||
Metlife Inc | related party loan one [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Debt Instrument, Face Amount | ¥ | ¥ 53.3 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 1.45% | 1.45% | 1.45% | |||
Debt Instrument, Maturity Date | Jul. 31, 2019 | |||||
Metlife Inc | Related Party Loan Two [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Debt Instrument, Face Amount | ¥ | ¥ 37.3 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 1.60% | 1.60% | 1.60% | |||
Debt Instrument, Maturity Date | Jul. 31, 2023 | |||||
Metlife Inc | Related Party Loan Three [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Debt Instrument, Face Amount | ¥ | ¥ 16 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 1.64% | 1.64% | 1.64% | |||
Debt Instrument, Maturity Date | Jul. 31, 2026 | |||||
American Life Insurance Company | ||||||
Related Party Transaction [Line Items] | ||||||
Other invested assets relating to variable interest entities | $ 100 | $ 100 | 100 | |||
Related Party Transaction, Other Revenues from Transactions with Related Party | $ 1 | 1 | $ 2 | 2 | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.17% | 3.17% | 3.17% | |||
Debt Instrument, Maturity Date | Jun. 30, 2020 | |||||
Metropolitan Property And Casualty Insurance Company | ||||||
Related Party Transaction [Line Items] | ||||||
Other invested assets relating to variable interest entities | $ 315 | $ 315 | 315 | |||
Related Party Transaction, Other Revenues from Transactions with Related Party | 2 | 2 | 5 | 4 | ||
Affiliated Entity | ||||||
Related Party Transaction [Line Items] | ||||||
Other invested assets relating to variable interest entities | 2,249 | 2,249 | 2,213 | |||
Short-term investments | 64 | 64 | 52 | |||
Metropolitan Money Market Pool | ||||||
Related Party Transaction [Line Items] | ||||||
Short-term investments | 64 | 64 | $ 52 | |||
Other | Affiliated Entity | ||||||
Related Party Transaction [Line Items] | ||||||
Related Party Transaction, Other Revenues from Transactions with Related Party | 12 | 7 | 24 | 21 | ||
Short-term Investments | Affiliated Entity | ||||||
Related Party Transaction [Line Items] | ||||||
Related Party Transaction, Other Revenues from Transactions with Related Party | 1 | 1 | 1 | 1 | ||
Short-term Investments | Metropolitan Money Market Pool | ||||||
Related Party Transaction [Line Items] | ||||||
Related Party Transaction, Other Revenues from Transactions with Related Party | $ 1 | $ 1 | $ 1 | $ 1 |
Investments (Fixed Maturity S_2
Investments (Fixed Maturity Securities Available-For-Sale - Narrative) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value of Fixed Maturity Securities AFS | $ 165,102 | $ 159,073 |
Non-income producing fixed maturity securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value of Fixed Maturity Securities AFS | 25 | 14 |
Gross Unrealized Gain (Loss) | $ 1 | $ (1) |
Investments (Evaluation of Avai
Investments (Evaluation of Available-For-Sale Securities for OTTI and Evaluating Temporarily Impaired AFS Securities - Narrative) (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2019USD ($)Contracts | |
Debt Securities, Available-for-sale [Line Items] | |
Debt Securities Available For Sale With Gross Unrealized Loss Of Equal To Or Greater Than Stated Percentage | 20.00% |
Fixed Maturity Securities | |
Debt Securities, Available-for-sale [Line Items] | |
Change in Gross Unrealized Temporary Loss | $ (2,700) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | 1,200 |
20% or more | Six months or greater | Fixed Maturity Securities | |
Debt Securities, Available-for-sale [Line Items] | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ 127 |
Number of Securities | Contracts | 20 |
20% or more | Six months or greater | Fixed Maturity Securities | Investment Grade | |
Debt Securities, Available-for-sale [Line Items] | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ 85 |
Number of Securities | Contracts | 11 |
Percentage of gross unrealized loss | 67.00% |
20% or more | Six months or greater | Fixed Maturity Securities | Below Investment Grade | |
Debt Securities, Available-for-sale [Line Items] | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ 42 |
Number of Securities | Contracts | 9 |
Percentage of gross unrealized loss | 33.00% |
Investments (Mortgage Loans - N
Investments (Mortgage Loans - Narrative) (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 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Unamortized Loan Commitment and Origination Fees and Unamortized Discounts or Premiums | $ 904 | $ 904 | $ 907 | ||
Financing Receivable, Purchase | $ 472 | $ 666 | $ 1,800 | $ 954 | |
Percentage of Mortgage Loans Classified as Performing | 99.00% | 99.00% | 99.00% | ||
Commercial Mortgage Loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Impaired Financing Receivable, Average Recorded Investment | $ 0 | 0 | $ 0 | 0 | |
Residential Mortgage Loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Impaired Financing Receivable, Average Recorded Investment | 401 | 351 | 396 | 342 | |
Agricultural Mortgage Loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Impaired Financing Receivable, Average Recorded Investment | $ 172 | $ 122 | $ 181 | $ 97 |
Investments (Real Estate and _2
Investments (Real Estate and Real Estate Joint Ventures - Narrative) (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 | |
Real Estate [Line Items] | |||||
Real Estate Acquired Through Foreclosure | $ 41 | $ 41 | $ 42 | ||
Real Estate Investment Property, Net | 700 | 700 | $ 671 | ||
Real estate and real estate joint ventures | |||||
Real Estate [Line Items] | |||||
Depreciation | $ 17 | $ 15 | $ 32 | $ 34 |
Investments (Operating Leases -
Investments (Operating Leases - Narrative) (Details) $ in Millions | Jun. 30, 2019USD ($) |
Investments, Debt and Equity Securities [Abstract] | |
Operating Leases, Future Minimum Payments Receivable, Current | $ 64 |
Operating Leases, Future Minimum Payments Receivable, in Two Years | 120 |
Operating Leases, Future Minimum Payments Receivable, in Three Years | 97 |
Operating Leases, Future Minimum Payments Receivable, in Four Years | 77 |
Operating Leases, Future Minimum Payments Receivable, in Five Years | 60 |
Operating Leases, Future Minimum Payments Receivable, Thereafter | 149 |
Operating Leases, Future Minimum Payments Receivable | $ 567 |
Investments (Leveraged and Dire
Investments (Leveraged and Direct Financing Leases - Narrative) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Lessor, Lease, Description [Line Items] | ||
Loans and Leases Receivable, Other Information | Lease receivables are generally due in periodic installments, with payment periods generally ranging from one to 15 years, but in certain circumstances can be over 25 years | |
Leveraged Leases, Net Investment in Leveraged Leases Disclosure, Deferred Taxes Arising from Leveraged Leases | $ 459 | $ 465 |
Performing | Minimum | ||
Lessor, Lease, Description [Line Items] | ||
Loans and Leases Receivable, Ratio of Performing Loans to All Loans | 100.00% | 100.00% |
Investments (Cash Equivalents -
Investments (Cash Equivalents - Narrative) (Details) - USD ($) $ in Billions | Jun. 30, 2019 | Dec. 31, 2018 |
Investments, Debt and Equity Securities [Abstract] | ||
Cash equivalents | $ 7.5 | $ 5 |
Investments (Concentrations of
Investments (Concentrations of Credit Risk - Narrative) (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 | |
Investments, Debt and Equity Securities [Abstract] | |||||
Fair Value, Concentration of Risk, Investments | $ 0 | $ 0 | $ 0 | ||
Securities holdings exposure in single issuer greater than stated percentage of Company's equity | 10.00% | 10.00% | 10.00% | 10.00% |
Investments (Invested Assets _2
Investments (Invested Assets on Deposits and Pledged as Collateral - Narrative) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Investments, Debt and Equity Securities [Abstract] | ||
Federal Home Loan Bank Stock | $ 727 | $ 724 |
Investments (Consolidated Var_2
Investments (Consolidated Variable Interest Entities - Narrative) (Details) - RMBS $ in Millions | 3 Months Ended |
Jun. 30, 2019USD ($) | |
Variable Interest Entity [Line Items] | |
Proceeds from securitization of Loans Held for Investments Carry Value | $ 443 |
Proceeds from Securitizations of Loans Held-for-investment | 467 |
Gain (Loss) on Securitization of Financial Assets | 24 |
Transfers of Financial Assets Accounted for as Sale, Initial Fair Value of Assets Obtained as Proceeds | $ 133 |
Investments (Net Investment I_2
Investments (Net Investment Income - Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Equity Method Investments [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Gross Investment Income, Operating | $ 157 | $ 57 | $ 193 | $ 190 |
Investments (Net Investment Gai
Investments (Net Investment Gains Losses - Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Gains (losses) from foreign currency transactions | $ (10) | $ 29 | $ (11) | $ 18 |
Investments (Related Party Inve
Investments (Related Party Investment Transactions - Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Related Party Transaction, Selling, General and Administrative Expenses from Transactions with Related Party | $ 19 | |||
Related Party Transaction, Purchases from Related Party | $ 72 | $ 69 | $ 148 |
Derivatives (Primary Risks) (De
Derivatives (Primary Risks) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 228,408 | $ 226,434 |
Estimated Fair Value Assets | 8,442 | 7,218 |
Estimated Fair Value Liabilities | 1,961 | 2,219 |
Derivatives Designated as Hedging Instruments: | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 35,771 | 36,080 |
Estimated Fair Value Assets | 4,159 | 3,603 |
Estimated Fair Value Liabilities | 1,197 | 1,537 |
Derivatives Designated as Hedging Instruments: | Fair Value Hedges [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 3,455 | 3,637 |
Estimated Fair Value Assets | 2,626 | 2,246 |
Estimated Fair Value Liabilities | 7 | 2 |
Derivatives Designated as Hedging Instruments: | Fair Value Hedges [Member] | Interest rate swaps | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 2,315 | 2,446 |
Estimated Fair Value Assets | 2,590 | 2,197 |
Estimated Fair Value Liabilities | 3 | 2 |
Derivatives Designated as Hedging Instruments: | Fair Value Hedges [Member] | Foreign currency swaps | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 1,140 | 1,191 |
Estimated Fair Value Assets | 36 | 49 |
Estimated Fair Value Liabilities | 4 | 0 |
Derivatives Designated as Hedging Instruments: | Cash Flow Hedges [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 32,316 | 32,443 |
Estimated Fair Value Assets | 1,533 | 1,357 |
Estimated Fair Value Liabilities | 1,190 | 1,535 |
Derivatives Designated as Hedging Instruments: | Cash Flow Hedges [Member] | Interest rate swaps | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 3,457 | 3,181 |
Estimated Fair Value Assets | 164 | 139 |
Estimated Fair Value Liabilities | 8 | 1 |
Derivatives Designated as Hedging Instruments: | Cash Flow Hedges [Member] | Interest rate forwards | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 2,855 | 3,023 |
Estimated Fair Value Assets | 39 | 0 |
Estimated Fair Value Liabilities | 19 | 216 |
Derivatives Designated as Hedging Instruments: | Cash Flow Hedges [Member] | Foreign currency swaps | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 26,004 | 26,239 |
Estimated Fair Value Assets | 1,330 | 1,218 |
Estimated Fair Value Liabilities | 1,163 | 1,318 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 192,637 | 190,354 |
Estimated Fair Value Assets | 4,283 | 3,615 |
Estimated Fair Value Liabilities | 764 | 682 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Interest rate swaps | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 35,384 | 36,238 |
Estimated Fair Value Assets | 2,030 | 1,507 |
Estimated Fair Value Liabilities | 109 | 85 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Interest rate floors | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 12,701 | 12,701 |
Estimated Fair Value Assets | 186 | 102 |
Estimated Fair Value Liabilities | 0 | 0 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Interest rate caps | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 52,388 | 54,576 |
Estimated Fair Value Assets | 30 | 154 |
Estimated Fair Value Liabilities | 2 | 1 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Interest rate futures | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 448 | 794 |
Estimated Fair Value Assets | 0 | 0 |
Estimated Fair Value Liabilities | 0 | 1 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Interest rate options | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 28,430 | 24,340 |
Estimated Fair Value Assets | 605 | 185 |
Estimated Fair Value Liabilities | 0 | 0 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Synthetic GICs | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 16,985 | 18,006 |
Estimated Fair Value Assets | 0 | 0 |
Estimated Fair Value Liabilities | 0 | 0 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Foreign currency swaps | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 6,326 | 5,986 |
Estimated Fair Value Assets | 642 | 700 |
Estimated Fair Value Liabilities | 93 | 79 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Foreign currency forwards | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 662 | 943 |
Estimated Fair Value Assets | 11 | 15 |
Estimated Fair Value Liabilities | 7 | 14 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Credit default swaps — purchased | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 843 | 858 |
Estimated Fair Value Assets | 16 | 24 |
Estimated Fair Value Liabilities | 3 | 4 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Credit default swaps — written | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 8,887 | 7,864 |
Estimated Fair Value Assets | 180 | 67 |
Estimated Fair Value Liabilities | 1 | 13 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Equity futures | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 1,707 | 1,006 |
Estimated Fair Value Assets | 1 | 1 |
Estimated Fair Value Liabilities | 7 | 6 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Equity index options | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 24,158 | 23,162 |
Estimated Fair Value Assets | 482 | 706 |
Estimated Fair Value Liabilities | 442 | 396 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Equity variance swaps | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 1,946 | 1,946 |
Estimated Fair Value Assets | 35 | 32 |
Estimated Fair Value Liabilities | 88 | 81 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Equity Total Return Swaps [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 724 | 886 |
Estimated Fair Value Assets | 0 | 89 |
Estimated Fair Value Liabilities | 12 | 0 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Equity total return swaps | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 1,048 | 1,048 |
Estimated Fair Value Assets | 65 | 33 |
Estimated Fair Value Liabilities | $ 0 | $ 2 |
Derivatives Derivatives (Effect
Derivatives Derivatives (Effects on the Consolidated Statement of Operations and Comprehensive Income (Loss) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) on Discontinuation of Cash Flow Hedge Due to Forecasted Transaction Probable of Not Occurring, Net | $ 47,000,000 | $ 1,000,000 | $ 49,000,000 | $ 1,000,000 |
Derivative, Gain (Loss) on Derivative, Net | 208,000,000 | 305,000,000 | (102,000,000) | 365,000,000 |
Net Investment Income | 2,794,000,000 | 2,684,000,000 | 5,439,000,000 | 5,385,000,000 |
Gain (Loss) on Investments | 66,000,000 | (30,000,000) | 12,000,000 | (226,000,000) |
Net other expenses | 1,235,000,000 | 1,277,000,000 | 2,383,000,000 | 2,631,000,000 |
Net policyholder benefits and claims | 5,765,000,000 | 11,552,000,000 | 11,427,000,000 | 17,066,000,000 |
Interest credited to policyholder account balances | 663,000,000 | 612,000,000 | 1,325,000,000 | 1,193,000,000 |
Nonperformance Risk [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Embedded Derivative, Gain (Loss) on Embedded Derivative, Net | 0 | 0 | (11,000,000) | (21,000,000) |
Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | 0 | 0 | 0 | 22,000,000 |
Net Investment Income | 5,000,000 | 5,000,000 | 9,000,000 | 9,000,000 |
Gain (Loss) on Investments | 2,000,000 | 0 | (13,000,000) | 0 |
Net other expenses | 0 | 0 | 0 | 0 |
Net policyholder benefits and claims | 0 | 0 | 0 | 0 |
Interest credited to policyholder account balances | 0 | 0 | 0 | 0 |
Other Comprehensive Income (Loss), before Tax | 479,000,000 | 570,000,000 | 550,000,000 | (598,000,000) |
Fair Value Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | 0 | 1,000,000 | 0 | 1,000,000 |
Net Investment Income | 0 | 0 | (1,000,000) | 0 |
Gain (Loss) on Investments | 0 | 0 | 0 | 0 |
Net other expenses | 0 | 0 | 0 | 0 |
Net policyholder benefits and claims | (1,000,000) | 0 | (2,000,000) | 0 |
Interest credited to policyholder account balances | 0 | 0 | 0 | 0 |
Interest rate contracts | Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | 0 | 0 | 0 | 20,000,000 |
Net Investment Income | 6,000,000 | 6,000,000 | 11,000,000 | 10,000,000 |
Gain (Loss) on Investments | 5,000,000 | 0 | (1,000,000) | 0 |
Net other expenses | 0 | 0 | 0 | 0 |
Net policyholder benefits and claims | 0 | 0 | 0 | 0 |
Interest credited to policyholder account balances | 0 | 0 | 0 | 0 |
Other Comprehensive Income (Loss), before Tax | (11,000,000) | (6,000,000) | (10,000,000) | (30,000,000) |
Credit forwards [Member] | Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | 0 | 0 | 0 | 0 |
Net Investment Income | 0 | 0 | 0 | 0 |
Gain (Loss) on Investments | 0 | 0 | 0 | 0 |
Net other expenses | 0 | 0 | 0 | 0 |
Net policyholder benefits and claims | 0 | 0 | 0 | 0 |
Interest credited to policyholder account balances | 0 | 0 | 0 | 0 |
Other Comprehensive Income (Loss), before Tax | 0 | 0 | 0 | 0 |
Currency Swap [Member] | Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | 0 | (398,000,000) | 0 | (238,000,000) |
Net Investment Income | (1,000,000) | (1,000,000) | (2,000,000) | (1,000,000) |
Gain (Loss) on Investments | 34,000,000 | 0 | 81,000,000 | 0 |
Net other expenses | 0 | 0 | 0 | 0 |
Net policyholder benefits and claims | 0 | 0 | 0 | 0 |
Interest credited to policyholder account balances | 0 | 0 | 0 | 0 |
Other Comprehensive Income (Loss), before Tax | (33,000,000) | 399,000,000 | (79,000,000) | (239,000,000) |
Foreign Currency Gain (Loss) [Member] | Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | 0 | 398,000,000 | 0 | 240,000,000 |
Net Investment Income | 0 | 0 | 0 | 0 |
Gain (Loss) on Investments | (37,000,000) | 0 | (93,000,000) | 0 |
Net other expenses | 0 | 0 | 0 | 0 |
Net policyholder benefits and claims | 0 | 0 | 0 | 0 |
Interest credited to policyholder account balances | 0 | 0 | 0 | 0 |
Other Comprehensive Income (Loss), before Tax | 0 | 0 | 0 | 0 |
Derivative [Member] | Fair Value Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | 0 | 0 | 0 | 0 |
Net Investment Income | 0 | 0 | 0 | 0 |
Gain (Loss) on Investments | 0 | 0 | 0 | 0 |
Net other expenses | 0 | 0 | 0 | 0 |
Net policyholder benefits and claims | 0 | 0 | 0 | 0 |
Interest credited to policyholder account balances | 0 | 0 | 0 | 0 |
Derivative [Member] | Currency Swap [Member] | Fair Value Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | 0 | 54,000,000 | 0 | 47,000,000 |
Net Investment Income | 9,000,000 | 0 | (20,000,000) | 0 |
Gain (Loss) on Investments | 0 | 0 | 0 | 0 |
Net other expenses | 0 | 0 | 0 | 0 |
Net policyholder benefits and claims | 0 | 0 | 0 | 0 |
Interest credited to policyholder account balances | 0 | 0 | 0 | 0 |
Derivative [Member] | Interest Rate Swap [Member] | Fair Value Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | 0 | (68,000,000) | 0 | (278,000,000) |
Net Investment Income | (1,000,000) | 0 | (4,000,000) | 0 |
Gain (Loss) on Investments | 0 | 0 | 0 | 0 |
Net other expenses | 0 | 0 | 0 | 0 |
Net policyholder benefits and claims | 205,000,000 | 0 | 332,000,000 | 0 |
Interest credited to policyholder account balances | 0 | 0 | 0 | 0 |
Fixed maturity securities AFS | Currency Swap [Member] | Fair Value Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | 0 | (55,000,000) | 0 | (48,000,000) |
Net Investment Income | (10,000,000) | 0 | 18,000,000 | 0 |
Gain (Loss) on Investments | 0 | 0 | 0 | 0 |
Net other expenses | 0 | 0 | 0 | 0 |
Net policyholder benefits and claims | 0 | 0 | 0 | 0 |
Interest credited to policyholder account balances | 0 | 0 | 0 | 0 |
Fixed maturity securities AFS | Interest Rate Swap [Member] | Fair Value Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | 0 | 70,000,000 | 0 | 280,000,000 |
Net Investment Income | 2,000,000 | 0 | 5,000,000 | 0 |
Gain (Loss) on Investments | 0 | 0 | 0 | 0 |
Net other expenses | 0 | 0 | 0 | 0 |
Net policyholder benefits and claims | (206,000,000) | 0 | (334,000,000) | 0 |
Interest credited to policyholder account balances | 0 | 0 | 0 | 0 |
Accumulated Other Comprehensive Income (Loss) | Credit forwards [Member] | Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Other Comprehensive Income (Loss), before Tax | 0 | 0 | 0 | 0 |
Accumulated Other Comprehensive Income (Loss) | Currency Swap [Member] | Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Other Comprehensive Income (Loss), before Tax | 172,000,000 | 235,000,000 | 46,000,000 | 6,000,000 |
Accumulated Other Comprehensive Income (Loss) | Interest Rate Swap [Member] | Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Other Comprehensive Income (Loss), before Tax | 351,000,000 | (58,000,000) | 593,000,000 | (335,000,000) |
Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | 465,000,000 | 14,000,000 | 182,000,000 | (363,000,000) |
Net Investment Income | (1,000,000) | 0 | (2,000,000) | 5,000,000 |
Gain (Loss) on Investments | 0 | 0 | 0 | 0 |
Net other expenses | 0 | 0 | 0 | 0 |
Net policyholder benefits and claims | (21,000,000) | (16,000,000) | (89,000,000) | (15,000,000) |
Interest credited to policyholder account balances | 0 | 0 | 0 | 0 |
Equity Market Risk [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | (147,000,000) | (111,000,000) | (629,000,000) | (101,000,000) |
Net Investment Income | 0 | 0 | 0 | 1,000,000 |
Gain (Loss) on Investments | 0 | 0 | 0 | 0 |
Net other expenses | 0 | 0 | 0 | 0 |
Net policyholder benefits and claims | (21,000,000) | (16,000,000) | (89,000,000) | (15,000,000) |
Interest credited to policyholder account balances | 0 | 0 | 0 | 0 |
Foreign Currency Gain (Loss) [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | (106,000,000) | (170,000,000) | (69,000,000) | (58,000,000) |
Net Investment Income | 0 | 0 | 0 | 0 |
Gain (Loss) on Investments | 0 | 0 | 0 | 0 |
Net other expenses | 0 | 0 | 0 | 0 |
Net policyholder benefits and claims | 0 | 0 | 0 | 0 |
Interest credited to policyholder account balances | 0 | 0 | 0 | 0 |
Interest Rate Risk [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | 607,000,000 | (85,000,000) | 748,000,000 | (341,000,000) |
Net Investment Income | (1,000,000) | 0 | (2,000,000) | 4,000,000 |
Gain (Loss) on Investments | 0 | 0 | 0 | 0 |
Net other expenses | 0 | 0 | 0 | 0 |
Net policyholder benefits and claims | 0 | 0 | 0 | 0 |
Interest credited to policyholder account balances | 0 | 0 | 0 | 0 |
Foreign Exchange [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | 77,000,000 | 394,000,000 | 16,000,000 | 180,000,000 |
Net Investment Income | 0 | 0 | 0 | 0 |
Gain (Loss) on Investments | 0 | 0 | 0 | 0 |
Net other expenses | 0 | 0 | 0 | 0 |
Net policyholder benefits and claims | 0 | 0 | 0 | 0 |
Interest credited to policyholder account balances | 0 | 0 | 0 | 0 |
Credit Default Swap, Buying Protection [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | (2,000,000) | 13,000,000 | (12,000,000) | 12,000,000 |
Net Investment Income | 0 | 0 | 0 | 0 |
Gain (Loss) on Investments | 0 | 0 | 0 | 0 |
Net other expenses | 0 | 0 | 0 | 0 |
Net policyholder benefits and claims | 0 | 0 | 0 | 0 |
Interest credited to policyholder account balances | 0 | 0 | 0 | 0 |
Credit Default Swap, Selling Protection [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | 36,000,000 | (27,000,000) | 128,000,000 | (55,000,000) |
Net Investment Income | 0 | 0 | 0 | 0 |
Gain (Loss) on Investments | 0 | 0 | 0 | 0 |
Net other expenses | 0 | 0 | 0 | 0 |
Net policyholder benefits and claims | 0 | 0 | 0 | 0 |
Interest credited to policyholder account balances | 0 | 0 | 0 | 0 |
Embedded Derivative Financial Instruments [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | (325,000,000) | 206,000,000 | (423,000,000) | 539,000,000 |
Net policyholder benefits and claims | 0 | 0 | 0 | 0 |
Nonoperating Income (Expense) [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | 68,000,000 | 84,000,000 | 139,000,000 | 166,000,000 |
Net Investment Income | 64,000,000 | 99,000,000 | 134,000,000 | 176,000,000 |
Gain (Loss) on Investments | 0 | 0 | 0 | 0 |
Net other expenses | 0 | 0 | 0 | 0 |
Net policyholder benefits and claims | 32,000,000 | 2,000,000 | 63,000,000 | 4,000,000 |
Interest credited to policyholder account balances | (36,000,000) | (29,000,000) | (68,000,000) | (52,000,000) |
Other Comprehensive Income (Loss), before Tax | 0 | 0 | 0 | 0 |
Effects of Derivatives on Consolidated Statements of Operations and Comprehensive Income (Loss) [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net Investment Income | 68,000,000 | 104,000,000 | 140,000,000 | 190,000,000 |
Gain (Loss) on Investments | 2,000,000 | 0 | (13,000,000) | 0 |
Net other expenses | 0 | 0 | 0 | 0 |
Net policyholder benefits and claims | 10,000,000 | (14,000,000) | (28,000,000) | (11,000,000) |
Interest credited to policyholder account balances | (36,000,000) | (29,000,000) | (68,000,000) | (52,000,000) |
Other Comprehensive Income (Loss), before Tax | $ 479,000,000 | $ 570,000,000 | $ 550,000,000 | $ (598,000,000) |
Derivatives (Fair Value Hedges)
Derivatives (Fair Value Hedges) (Details) - Designated as Hedging Instrument [Member] $ in Millions | Jun. 30, 2019USD ($) |
Mortgage loans | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Debt Instruments, Carrying Amount | $ 1,074 |
Hedged Asset, Fair Value Hedge, Cumulative Increase (Decrease) | 6 |
Future policy benefits [Member] | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Debt Instruments, Carrying Amount | (4,286) |
Hedged Asset, Fair Value Hedge, Cumulative Increase (Decrease) | (873) |
Policyholder Account Balances [Member] | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Debt Instruments, Carrying Amount | (74) |
Hedged Asset, Fair Value Hedge, Cumulative Increase (Decrease) | 0 |
Fixed Maturities [Member] | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Hedged Asset, Discontinued Fair Value Hedge, Cumulative Increase (Decrease) | (1) |
Debt Instruments, Carrying Amount | 257 |
Hedged Asset, Fair Value Hedge, Cumulative Increase (Decrease) | $ (1) |
Derivatives (Credit Derivatives
Derivatives (Credit Derivatives) (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Credit Derivatives [Line Items] | |||
Estimated Fair Value of Credit Default Swaps | $ 179 | $ 54 | |
Maximum Amount of Future Payments under Credit Default Swaps | $ 8,887 | 7,864 | |
Weighted Average Years to Maturity | 4 years 3 months 18 days | 4 years 3 months 18 days | |
Aaa/Aa/A | |||
Credit Derivatives [Line Items] | |||
Estimated Fair Value of Credit Default Swaps | $ 40 | 29 | |
Maximum Amount of Future Payments under Credit Default Swaps | $ 2,582 | 2,233 | |
Weighted Average Years to Maturity | 2 years 4 months 24 days | 2 years 6 months | |
Aaa/Aa/A | Single name credit default swaps (3) | |||
Credit Derivatives [Line Items] | |||
Estimated Fair Value of Credit Default Swaps | $ 2 | 2 | |
Maximum Amount of Future Payments under Credit Default Swaps | $ 154 | 154 | |
Weighted Average Years to Maturity | 1 year 6 months | 2 years | |
Aaa/Aa/A | Credit default swaps referencing indices | |||
Credit Derivatives [Line Items] | |||
Estimated Fair Value of Credit Default Swaps | $ 38 | 27 | |
Maximum Amount of Future Payments under Credit Default Swaps | $ 2,428 | 2,079 | |
Weighted Average Years to Maturity | 2 years 4 months 24 days | 2 years 6 months | |
Baa | |||
Credit Derivatives [Line Items] | |||
Estimated Fair Value of Credit Default Swaps | $ 123 | 21 | |
Maximum Amount of Future Payments under Credit Default Swaps | $ 6,075 | 5,401 | |
Weighted Average Years to Maturity | 5 years | 5 years | |
Baa | Single name credit default swaps (3) | |||
Credit Derivatives [Line Items] | |||
Estimated Fair Value of Credit Default Swaps | $ 2 | 1 | |
Maximum Amount of Future Payments under Credit Default Swaps | $ 222 | 277 | |
Weighted Average Years to Maturity | 1 year 4 months 24 days | 1 year 7 months 6 days | |
Baa | Credit default swaps referencing indices | |||
Credit Derivatives [Line Items] | |||
Estimated Fair Value of Credit Default Swaps | $ 121 | 20 | |
Maximum Amount of Future Payments under Credit Default Swaps | $ 5,853 | 5,124 | |
Weighted Average Years to Maturity | 5 years 2 months 12 days | 5 years 2 months 12 days | |
Ba | |||
Credit Derivatives [Line Items] | |||
Estimated Fair Value of Credit Default Swaps | $ 0 | 0 | |
Maximum Amount of Future Payments under Credit Default Swaps | $ 10 | 10 | |
Weighted Average Years to Maturity | 1 year | 1 year 6 months | |
Ba | Single name credit default swaps (3) | |||
Credit Derivatives [Line Items] | |||
Estimated Fair Value of Credit Default Swaps | $ 0 | 0 | |
Maximum Amount of Future Payments under Credit Default Swaps | $ 10 | 10 | |
Weighted Average Years to Maturity | 1 year | 1 year 6 months | |
Ba | Credit default swaps referencing indices | |||
Credit Derivatives [Line Items] | |||
Estimated Fair Value of Credit Default Swaps | $ 0 | 0 | |
Maximum Amount of Future Payments under Credit Default Swaps | $ 0 | $ 0 | |
Weighted Average Years to Maturity | 0 years | 0 years | |
B [Member] | |||
Credit Derivatives [Line Items] | |||
Estimated Fair Value of Credit Default Swaps | $ 16 | $ 4 | |
Maximum Amount of Future Payments under Credit Default Swaps | $ 220 | 220 | |
Weighted Average Years to Maturity | 5 years | 5 years | |
B [Member] | Single name credit default swaps (3) | |||
Credit Derivatives [Line Items] | |||
Estimated Fair Value of Credit Default Swaps | $ 0 | 0 | |
Maximum Amount of Future Payments under Credit Default Swaps | $ 0 | $ 0 | |
Weighted Average Years to Maturity | 0 years | 0 years | |
B [Member] | Credit default swaps referencing indices | |||
Credit Derivatives [Line Items] | |||
Estimated Fair Value of Credit Default Swaps | $ 16 | $ 4 | |
Maximum Amount of Future Payments under Credit Default Swaps | $ 220 | $ 220 | |
Weighted Average Years to Maturity | 5 years | 5 years |
Derivatives (Estimated Fair Val
Derivatives (Estimated Fair Value of Derivative Assets and Liabilities after Master Netting Agreements and Cash Collateral) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Offsetting Assets [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset Excluding Accruals | $ 8,530 | $ 7,308 |
Derivative Liability, Fair Value, Gross Liability Excluding Accruals | 1,961 | 2,197 |
Net amount of derivative assets after application of master netting agreements and cash collateral | 144 | 138 |
Net amount of derivative liabilities after application of master netting agreements and cash collateral | 0 | 0 |
Over the Counter [Member] | ||
Offsetting Assets [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset Excluding Accruals | 8,383 | 7,255 |
Derivative Liability, Fair Value, Gross Liability Excluding Accruals | 1,940 | 2,166 |
Gross estimated fair value of derivative assets | (1,845) | (1,988) |
Gross estimated fair value of derivative liabilities | (1,845) | (1,988) |
Cash collateral on derivative assets | (3,711) | (4,000) |
Cash collateral on derivative liabilities | 0 | 0 |
Securities collateral on derivative assets | (2,689) | (1,136) |
Securities collateral on derivative liabilities | (95) | (178) |
Exchange Traded [Member] | ||
Offsetting Assets [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset Excluding Accruals | 1 | 1 |
Derivative Liability, Fair Value, Gross Liability Excluding Accruals | 7 | 7 |
Gross estimated fair value of derivative assets | 0 | 0 |
Gross estimated fair value of derivative liabilities | 0 | 0 |
Cash collateral on derivative assets | 0 | 0 |
Cash collateral on derivative liabilities | 0 | 0 |
Securities collateral on derivative assets | 0 | 0 |
Securities collateral on derivative liabilities | (7) | (7) |
Cleared [Member] | ||
Offsetting Assets [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset Excluding Accruals | 146 | 52 |
Derivative Liability, Fair Value, Gross Liability Excluding Accruals | 14 | 24 |
Gross estimated fair value of derivative assets | (5) | (20) |
Gross estimated fair value of derivative liabilities | (5) | (20) |
Cash collateral on derivative assets | (136) | (26) |
Cash collateral on derivative liabilities | 0 | 0 |
Securities collateral on derivative assets | 0 | 0 |
Securities collateral on derivative liabilities | $ (9) | $ (4) |
Derivatives (Credit Risk on Fre
Derivatives (Credit Risk on Freestanding Derivatives) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Credit Derivatives [Line Items] | ||
Customer Securities for which Entity has Right to Sell or Repledge, Fair Value of Securities Sold or Repledged | $ 0 | |
Estimated Fair Value of Derivatives in Net Liability Position | 95 | $ 178 |
Fixed Maturity Securities | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Collateral Provided | 137 | 187 |
Cash | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Collateral Provided | 0 | 1 |
Estimated Fair Value of Derivatives in a Net Liability Position (1) | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Derivatives in Net Liability Position | 95 | 178 |
Estimated Fair Value of Derivatives in a Net Liability Position (1) | Fixed Maturity Securities | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Collateral Provided | 137 | 187 |
Estimated Fair Value of Derivatives in a Net Liability Position (1) | Cash | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Collateral Provided | 0 | 1 |
Estimated Fair Value of Collateral Provided: | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Derivatives in Net Liability Position | 0 | 0 |
Estimated Fair Value of Collateral Provided: | Fixed Maturity Securities | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Collateral Provided | 0 | 0 |
Estimated Fair Value of Collateral Provided: | Cash | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Collateral Provided | $ 0 | $ 0 |
Derivatives (Embedded Derivativ
Derivatives (Embedded Derivatives) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Derivatives, Fair Value [Line Items] | ||
Embedded Derivative, Fair Value of Embedded Derivative Liability | $ 1,219 | $ 704 |
Direct guaranteed minimum benefits | Policyholder account balances | ||
Derivatives, Fair Value [Line Items] | ||
Embedded Derivative, Fair Value of Embedded Derivative Liability | 179 | 178 |
Assumed guaranteed minimum benefits | Other policy-related balances [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Embedded Derivative, Fair Value of Embedded Derivative Liability | 3 | 3 |
Funds withheld on ceded reinsurance (including affiliated) | Other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Embedded Derivative, Fair Value of Embedded Derivative Liability | 930 | 465 |
Fixed annuities with equity indexed returns | Policyholder account balances | ||
Derivatives, Fair Value [Line Items] | ||
Embedded Derivative, Fair Value of Embedded Derivative Liability | $ 107 | $ 58 |
Derivatives (Narrative) (Detail
Derivatives (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Derivatives, Fair Value [Line Items] | |||||
Estimated Fair Value Assets | $ 8,442 | $ 8,442 | $ 7,218 | ||
Estimated Fair Value Liabilities | 1,961 | 1,961 | 2,219 | ||
Maximum Amount of Future Payments under Credit Default Swaps | 8,887 | 8,887 | 7,864 | ||
Estimated Fair Value of Credit Default Swaps | 179 | 179 | $ 54 | ||
Derivative Instrument Detail [Abstract] | |||||
Net amounts reclassified into net derivatives gains (losses) on discontinued cash flow hedges | 47 | $ 1 | $ 49 | $ 1 | |
Hedging exposure to variability in future cash flows for specific length of time | 9 years | 4 years | |||
Accumulated Other Comprehensive Income Loss | 2,300 | $ 2,300 | $ 1,700 | ||
Deferred net gains (losses) expected to be reclassified to earnings | 92 | ||||
Excess cash collateral received on derivatives | 103 | 103 | 95 | ||
Excess cash collateral provided on derivatives | 0 | 0 | 1 | ||
Securities collateral received which the company is permitted to sell or repledge, amount that has been sold or repledged | 0 | 0 | |||
Over the Counter [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Cash collateral on derivative assets | (3,711) | (3,711) | (4,000) | ||
Excess securities collateral received on derivatives | 74 | 74 | 28 | ||
Excess securities collateral provided on derivatives | 42 | 42 | 94 | ||
Exchange Traded [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Cash collateral on derivative assets | 0 | 0 | 0 | ||
Excess securities collateral received on derivatives | 295 | 295 | 231 | ||
Excess securities collateral provided on derivatives | 81 | 81 | 52 | ||
Nonperformance Risk [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Embedded derivative gains (losses) | 0 | $ 0 | (11) | $ (21) | |
Accrued Liabilities [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Estimated Fair Value Assets | 88 | 88 | 90 | ||
Estimated Fair Value Liabilities | $ 0 | $ 0 | $ (22) |
Fair Value (Recurring Fair Valu
Fair Value (Recurring Fair Value Measurements) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Assets [Abstract] | ||
Estimated Fair Value of Fixed Maturity Securities AFS | $ 165,102 | $ 159,073 |
Equity securities | 805 | 773 |
Short-term investments | 1,127 | 1,506 |
Mortgage loans, at estimated fair value, relating to variable interest entities | 64,671 | 63,687 |
Derivative assets | 8,442 | 7,218 |
Separate account assets | 120,172 | 110,850 |
Liabilities [Abstract] | ||
Derivative liabilities | 1,961 | 2,219 |
Embedded derivatives within liability host contracts | 1,219 | 704 |
Separate account liabilities | 120,172 | 110,850 |
Residential mortgage loans - FVO | ||
Assets [Abstract] | ||
Mortgage loans, at estimated fair value, relating to variable interest entities | 262 | 299 |
Recurring | ||
Assets [Abstract] | ||
Estimated Fair Value of Fixed Maturity Securities AFS | 165,102 | 159,073 |
Equity securities | 805 | 773 |
Short-term investments | 1,127 | 1,506 |
Other investments | 269 | 216 |
Derivative assets | 8,442 | 7,218 |
Embedded derivatives within asset host contracts | 0 | 0 |
Separate account assets | 120,172 | 110,850 |
Total assets | 296,179 | 279,935 |
Liabilities [Abstract] | ||
Derivative liabilities | 1,961 | 2,219 |
Embedded derivatives within liability host contracts | 1,219 | 704 |
Total liabilities | 3,222 | 2,951 |
Recurring | Interest rate contracts | ||
Assets [Abstract] | ||
Derivative assets | 5,709 | 4,317 |
Liabilities [Abstract] | ||
Derivative liabilities | 141 | 308 |
Recurring | Foreign currency exchange rate contracts | ||
Assets [Abstract] | ||
Derivative assets | 2,019 | 1,982 |
Liabilities [Abstract] | ||
Derivative liabilities | 1,267 | 1,411 |
Recurring | Credit contracts | ||
Assets [Abstract] | ||
Derivative assets | 196 | 91 |
Liabilities [Abstract] | ||
Derivative liabilities | 4 | 17 |
Recurring | Equity market contracts | ||
Assets [Abstract] | ||
Derivative assets | 518 | 828 |
Liabilities [Abstract] | ||
Derivative liabilities | 549 | 483 |
Recurring | Derivative Liabilities Within Separate Accounts | ||
Liabilities [Abstract] | ||
Separate account liabilities | 42 | 28 |
Recurring | Residential mortgage loans - FVO | ||
Assets [Abstract] | ||
Mortgage loans, at estimated fair value, relating to variable interest entities | 262 | 299 |
Recurring | U.S. corporate | ||
Assets [Abstract] | ||
Estimated Fair Value of Fixed Maturity Securities AFS | 56,826 | 54,802 |
Recurring | U.S. government and agency | ||
Assets [Abstract] | ||
Estimated Fair Value of Fixed Maturity Securities AFS | 28,656 | 30,161 |
Recurring | Foreign corporate | ||
Assets [Abstract] | ||
Estimated Fair Value of Fixed Maturity Securities AFS | 28,945 | 25,963 |
Recurring | RMBS | ||
Assets [Abstract] | ||
Estimated Fair Value of Fixed Maturity Securities AFS | 23,408 | 22,737 |
Recurring | ABS | ||
Assets [Abstract] | ||
Estimated Fair Value of Fixed Maturity Securities AFS | 9,452 | 8,527 |
Recurring | Municipals | ||
Assets [Abstract] | ||
Estimated Fair Value of Fixed Maturity Securities AFS | 7,373 | 6,947 |
Recurring | CMBS | ||
Assets [Abstract] | ||
Estimated Fair Value of Fixed Maturity Securities AFS | 5,602 | 5,444 |
Recurring | Foreign government | ||
Assets [Abstract] | ||
Estimated Fair Value of Fixed Maturity Securities AFS | 4,840 | 4,492 |
Recurring | Level 1 | ||
Assets [Abstract] | ||
Estimated Fair Value of Fixed Maturity Securities AFS | 11,246 | 12,310 |
Equity securities | 381 | 341 |
Short-term investments | 230 | 698 |
Other investments | 0 | 0 |
Derivative assets | 1 | 1 |
Embedded derivatives within asset host contracts | 0 | 0 |
Separate account assets | 23,370 | 20,558 |
Total assets | 35,228 | 33,908 |
Liabilities [Abstract] | ||
Derivative liabilities | 7 | 7 |
Embedded derivatives within liability host contracts | 0 | 0 |
Total liabilities | 9 | 8 |
Recurring | Level 1 | Interest rate contracts | ||
Assets [Abstract] | ||
Derivative assets | 0 | 0 |
Liabilities [Abstract] | ||
Derivative liabilities | 0 | 1 |
Recurring | Level 1 | Foreign currency exchange rate contracts | ||
Assets [Abstract] | ||
Derivative assets | 0 | 0 |
Liabilities [Abstract] | ||
Derivative liabilities | 0 | 0 |
Recurring | Level 1 | Credit contracts | ||
Assets [Abstract] | ||
Derivative assets | 0 | 0 |
Liabilities [Abstract] | ||
Derivative liabilities | 0 | 0 |
Recurring | Level 1 | Equity market contracts | ||
Assets [Abstract] | ||
Derivative assets | 1 | 1 |
Liabilities [Abstract] | ||
Derivative liabilities | 7 | 6 |
Recurring | Level 1 | Derivative Liabilities Within Separate Accounts | ||
Liabilities [Abstract] | ||
Separate account liabilities | 2 | 1 |
Recurring | Level 1 | Residential mortgage loans - FVO | ||
Assets [Abstract] | ||
Mortgage loans, at estimated fair value, relating to variable interest entities | 0 | 0 |
Recurring | Level 1 | U.S. corporate | ||
Assets [Abstract] | ||
Estimated Fair Value of Fixed Maturity Securities AFS | 0 | 0 |
Recurring | Level 1 | U.S. government and agency | ||
Assets [Abstract] | ||
Estimated Fair Value of Fixed Maturity Securities AFS | 11,226 | 12,310 |
Recurring | Level 1 | Foreign corporate | ||
Assets [Abstract] | ||
Estimated Fair Value of Fixed Maturity Securities AFS | 0 | 0 |
Recurring | Level 1 | RMBS | ||
Assets [Abstract] | ||
Estimated Fair Value of Fixed Maturity Securities AFS | 20 | 0 |
Recurring | Level 1 | ABS | ||
Assets [Abstract] | ||
Estimated Fair Value of Fixed Maturity Securities AFS | 0 | 0 |
Recurring | Level 1 | Municipals | ||
Assets [Abstract] | ||
Estimated Fair Value of Fixed Maturity Securities AFS | 0 | 0 |
Recurring | Level 1 | CMBS | ||
Assets [Abstract] | ||
Estimated Fair Value of Fixed Maturity Securities AFS | 0 | 0 |
Recurring | Level 1 | Foreign government | ||
Assets [Abstract] | ||
Estimated Fair Value of Fixed Maturity Securities AFS | 0 | 0 |
Recurring | Level 2 | ||
Assets [Abstract] | ||
Estimated Fair Value of Fixed Maturity Securities AFS | 142,947 | 136,111 |
Equity securities | 72 | 76 |
Short-term investments | 784 | 783 |
Other investments | 1 | 1 |
Derivative assets | 8,258 | 7,104 |
Embedded derivatives within asset host contracts | 0 | 0 |
Separate account assets | 95,870 | 89,348 |
Total assets | 247,932 | 233,423 |
Liabilities [Abstract] | ||
Derivative liabilities | 1,844 | 1,907 |
Embedded derivatives within liability host contracts | 0 | 0 |
Total liabilities | 1,877 | 1,927 |
Recurring | Level 2 | Interest rate contracts | ||
Assets [Abstract] | ||
Derivative assets | 5,606 | 4,284 |
Liabilities [Abstract] | ||
Derivative liabilities | 122 | 89 |
Recurring | Level 2 | Foreign currency exchange rate contracts | ||
Assets [Abstract] | ||
Derivative assets | 2,019 | 1,982 |
Liabilities [Abstract] | ||
Derivative liabilities | 1,264 | 1,410 |
Recurring | Level 2 | Credit contracts | ||
Assets [Abstract] | ||
Derivative assets | 160 | 62 |
Liabilities [Abstract] | ||
Derivative liabilities | 4 | 13 |
Recurring | Level 2 | Equity market contracts | ||
Assets [Abstract] | ||
Derivative assets | 473 | 776 |
Liabilities [Abstract] | ||
Derivative liabilities | 454 | 395 |
Recurring | Level 2 | Derivative Liabilities Within Separate Accounts | ||
Liabilities [Abstract] | ||
Separate account liabilities | 33 | 20 |
Recurring | Level 2 | Residential mortgage loans - FVO | ||
Assets [Abstract] | ||
Mortgage loans, at estimated fair value, relating to variable interest entities | 0 | 0 |
Recurring | Level 2 | U.S. corporate | ||
Assets [Abstract] | ||
Estimated Fair Value of Fixed Maturity Securities AFS | 53,609 | 51,676 |
Recurring | Level 2 | U.S. government and agency | ||
Assets [Abstract] | ||
Estimated Fair Value of Fixed Maturity Securities AFS | 17,430 | 17,851 |
Recurring | Level 2 | Foreign corporate | ||
Assets [Abstract] | ||
Estimated Fair Value of Fixed Maturity Securities AFS | 24,512 | 21,988 |
Recurring | Level 2 | RMBS | ||
Assets [Abstract] | ||
Estimated Fair Value of Fixed Maturity Securities AFS | 20,513 | 19,719 |
Recurring | Level 2 | ABS | ||
Assets [Abstract] | ||
Estimated Fair Value of Fixed Maturity Securities AFS | 9,126 | 8,072 |
Recurring | Level 2 | Municipals | ||
Assets [Abstract] | ||
Estimated Fair Value of Fixed Maturity Securities AFS | 7,366 | 6,947 |
Recurring | Level 2 | CMBS | ||
Assets [Abstract] | ||
Estimated Fair Value of Fixed Maturity Securities AFS | 5,561 | 5,376 |
Recurring | Level 2 | Foreign government | ||
Assets [Abstract] | ||
Estimated Fair Value of Fixed Maturity Securities AFS | 4,830 | 4,482 |
Recurring | Level 3 | ||
Assets [Abstract] | ||
Estimated Fair Value of Fixed Maturity Securities AFS | 10,909 | 10,652 |
Equity securities | 352 | 356 |
Short-term investments | 113 | 25 |
Other investments | 268 | 215 |
Derivative assets | 183 | 113 |
Embedded derivatives within asset host contracts | 0 | 0 |
Separate account assets | 932 | 944 |
Total assets | 13,019 | 12,604 |
Liabilities [Abstract] | ||
Derivative liabilities | 110 | 305 |
Embedded derivatives within liability host contracts | 1,219 | 704 |
Total liabilities | 1,336 | 1,016 |
Recurring | Level 3 | Interest rate contracts | ||
Assets [Abstract] | ||
Derivative assets | 103 | 33 |
Liabilities [Abstract] | ||
Derivative liabilities | 19 | 218 |
Recurring | Level 3 | Foreign currency exchange rate contracts | ||
Assets [Abstract] | ||
Derivative assets | 0 | 0 |
Liabilities [Abstract] | ||
Derivative liabilities | 3 | 1 |
Recurring | Level 3 | Credit contracts | ||
Assets [Abstract] | ||
Derivative assets | 36 | 29 |
Liabilities [Abstract] | ||
Derivative liabilities | 0 | 4 |
Recurring | Level 3 | Equity market contracts | ||
Assets [Abstract] | ||
Derivative assets | 44 | 51 |
Liabilities [Abstract] | ||
Derivative liabilities | 88 | 82 |
Recurring | Level 3 | Derivative Liabilities Within Separate Accounts | ||
Liabilities [Abstract] | ||
Separate account liabilities | 7 | 7 |
Recurring | Level 3 | Residential mortgage loans - FVO | ||
Assets [Abstract] | ||
Mortgage loans, at estimated fair value, relating to variable interest entities | 262 | 299 |
Recurring | Level 3 | U.S. corporate | ||
Assets [Abstract] | ||
Estimated Fair Value of Fixed Maturity Securities AFS | 3,217 | 3,126 |
Recurring | Level 3 | U.S. government and agency | ||
Assets [Abstract] | ||
Estimated Fair Value of Fixed Maturity Securities AFS | 0 | 0 |
Recurring | Level 3 | Foreign corporate | ||
Assets [Abstract] | ||
Estimated Fair Value of Fixed Maturity Securities AFS | 4,433 | 3,975 |
Recurring | Level 3 | RMBS | ||
Assets [Abstract] | ||
Estimated Fair Value of Fixed Maturity Securities AFS | 2,875 | 3,018 |
Recurring | Level 3 | ABS | ||
Assets [Abstract] | ||
Estimated Fair Value of Fixed Maturity Securities AFS | 326 | 455 |
Recurring | Level 3 | Municipals | ||
Assets [Abstract] | ||
Estimated Fair Value of Fixed Maturity Securities AFS | 7 | 0 |
Recurring | Level 3 | CMBS | ||
Assets [Abstract] | ||
Estimated Fair Value of Fixed Maturity Securities AFS | 41 | 68 |
Recurring | Level 3 | Foreign government | ||
Assets [Abstract] | ||
Estimated Fair Value of Fixed Maturity Securities AFS | 10 | 10 |
Partnership Interest | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | $ 105 | $ 140 |
Fair Value (Quantitative Inform
Fair Value (Quantitative Information) (Details) | Jun. 30, 2019 | Dec. 31, 2018 |
Minimum | Interest rate contracts | Measurement Input, Swap Yield | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative Asset (Liability) Net, Measurement Input | 197 | 268 |
Minimum | Interest rate contracts | Measurement Input, Repurchase Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative Asset (Liability) Net, Measurement Input | (25) | (5) |
Minimum | Foreign currency exchange rate contracts | Measurement Input, Swap Yield | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative Asset (Liability) Net, Measurement Input | (23) | (20) |
Minimum | Credit contracts | Measurement Input, Credit Spread | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative Asset (Liability) Net, Measurement Input | 96 | 97 |
Minimum | Equity market contracts | Measurement Input, Price Volatility | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative Asset (Liability) Net, Measurement Input | 0.16 | 0.21 |
Minimum | Equity market contracts | Measurement Input, Correlation | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative Asset (Liability) Net, Measurement Input | 0.10 | 0.10 |
Minimum | Embedded derivatives direct and assumed guaranteed minimum benefits | Measurement Input, Utilization Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded Derivative Asset (Liability) Net, Measurement Input | 0 | 0 |
Minimum | Embedded derivatives direct and assumed guaranteed minimum benefits | Measurement Input, Withdrawal Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded Derivative Asset (Liability) Net, Measurement Input | 0.0025 | 0.0025 |
Minimum | Embedded derivatives direct and assumed guaranteed minimum benefits | Measurement Input, Long-Term Equity Volatility | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded Derivative Asset (Liability) Net, Measurement Input | 0.1650 | 0.1650 |
Minimum | Embedded derivatives direct and assumed guaranteed minimum benefits | Measurement Input, Counterparty Credit Risk | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded Derivative Asset (Liability) Net, Measurement Input | 0.0003 | 0.0005 |
Minimum | Embedded derivatives direct and assumed guaranteed minimum benefits | Durations 1 - 10 | Measurement Input, Lapse Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded Derivative Asset (Liability) Net, Measurement Input | 0.0025 | 0.0025 |
Minimum | Embedded derivatives direct and assumed guaranteed minimum benefits | Durations 11 - 20 | Measurement Input, Lapse Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded Derivative Asset (Liability) Net, Measurement Input | 0.03 | 0.03 |
Minimum | Embedded derivatives direct and assumed guaranteed minimum benefits | Durations 21 - 116 | Measurement Input, Lapse Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded Derivative Asset (Liability) Net, Measurement Input | 0.025 | 0.025 |
Minimum | Embedded derivatives direct and assumed guaranteed minimum benefits | Ages 0 - 40 | Measurement Input, Mortality Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded Derivative Asset (Liability) Net, Measurement Input | 0.0001 | 0.0001 |
Minimum | Embedded derivatives direct and assumed guaranteed minimum benefits | Ages 41 - 60 | Measurement Input, Mortality Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded Derivative Asset (Liability) Net, Measurement Input | 0.0004 | 0.0004 |
Minimum | Embedded derivatives direct and assumed guaranteed minimum benefits | Ages 61 - 115 | Measurement Input, Mortality Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded Derivative Asset (Liability) Net, Measurement Input | 0.0026 | 0.0026 |
Minimum | U.S. and foreign corporate | Valuation Technique, Matrix Pricing | Measurement Input, Offered Price | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-sale, Measurement Input | 92 | 85 |
Minimum | U.S. and foreign corporate | Valuation, Market Approach | Measurement Input, Quoted Price | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-sale, Measurement Input | 25 | 25 |
Minimum | RMBS | Valuation, Market Approach | Measurement Input, Quoted Price | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-sale, Measurement Input | 0 | 0 |
Minimum | ABS | Valuation, Market Approach | Measurement Input, Quoted Price | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-sale, Measurement Input | 9 | 10 |
Maximum | Interest rate contracts | Measurement Input, Swap Yield | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative Asset (Liability) Net, Measurement Input | 259 | 317 |
Maximum | Interest rate contracts | Measurement Input, Repurchase Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative Asset (Liability) Net, Measurement Input | 1 | 6 |
Maximum | Foreign currency exchange rate contracts | Measurement Input, Swap Yield | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative Asset (Liability) Net, Measurement Input | (5) | (5) |
Maximum | Credit contracts | Measurement Input, Credit Spread | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative Asset (Liability) Net, Measurement Input | 100 | 103 |
Maximum | Equity market contracts | Measurement Input, Price Volatility | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative Asset (Liability) Net, Measurement Input | 0.23 | 0.26 |
Maximum | Equity market contracts | Measurement Input, Correlation | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative Asset (Liability) Net, Measurement Input | 0.30 | 0.30 |
Maximum | Embedded derivatives direct and assumed guaranteed minimum benefits | Measurement Input, Utilization Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded Derivative Asset (Liability) Net, Measurement Input | 0.25 | 0.25 |
Maximum | Embedded derivatives direct and assumed guaranteed minimum benefits | Measurement Input, Withdrawal Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded Derivative Asset (Liability) Net, Measurement Input | 0.10 | 0.10 |
Maximum | Embedded derivatives direct and assumed guaranteed minimum benefits | Measurement Input, Long-Term Equity Volatility | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded Derivative Asset (Liability) Net, Measurement Input | 0.22 | 0.22 |
Maximum | Embedded derivatives direct and assumed guaranteed minimum benefits | Measurement Input, Counterparty Credit Risk | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded Derivative Asset (Liability) Net, Measurement Input | 0.0045 | 0.0059 |
Maximum | Embedded derivatives direct and assumed guaranteed minimum benefits | Durations 1 - 10 | Measurement Input, Lapse Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded Derivative Asset (Liability) Net, Measurement Input | 1 | 1 |
Maximum | Embedded derivatives direct and assumed guaranteed minimum benefits | Durations 11 - 20 | Measurement Input, Lapse Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded Derivative Asset (Liability) Net, Measurement Input | 1 | 1 |
Maximum | Embedded derivatives direct and assumed guaranteed minimum benefits | Durations 21 - 116 | Measurement Input, Lapse Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded Derivative Asset (Liability) Net, Measurement Input | 1 | 1 |
Maximum | Embedded derivatives direct and assumed guaranteed minimum benefits | Ages 0 - 40 | Measurement Input, Mortality Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded Derivative Asset (Liability) Net, Measurement Input | 0.0018 | 0.0018 |
Maximum | Embedded derivatives direct and assumed guaranteed minimum benefits | Ages 41 - 60 | Measurement Input, Mortality Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded Derivative Asset (Liability) Net, Measurement Input | 0.0057 | 0.0057 |
Maximum | Embedded derivatives direct and assumed guaranteed minimum benefits | Ages 61 - 115 | Measurement Input, Mortality Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded Derivative Asset (Liability) Net, Measurement Input | 1 | 1 |
Maximum | U.S. and foreign corporate | Valuation Technique, Matrix Pricing | Measurement Input, Offered Price | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-sale, Measurement Input | 142 | 134 |
Maximum | U.S. and foreign corporate | Valuation, Market Approach | Measurement Input, Quoted Price | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-sale, Measurement Input | 416 | 638 |
Maximum | RMBS | Valuation, Market Approach | Measurement Input, Quoted Price | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-sale, Measurement Input | 111 | 106 |
Maximum | ABS | Valuation, Market Approach | Measurement Input, Quoted Price | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-sale, Measurement Input | 102 | 101 |
Weighted Average | U.S. and foreign corporate | Valuation Technique, Matrix Pricing | Measurement Input, Offered Price | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-sale, Measurement Input | 112 | 105 |
Weighted Average | U.S. and foreign corporate | Valuation, Market Approach | Measurement Input, Quoted Price | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-sale, Measurement Input | 110 | 107 |
Weighted Average | RMBS | Valuation, Market Approach | Measurement Input, Quoted Price | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-sale, Measurement Input | 95 | 94 |
Weighted Average | ABS | Valuation, Market Approach | Measurement Input, Quoted Price | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-sale, Measurement Input | 98 | 97 |
Fair Value (Unobservable Input
Fair Value (Unobservable Input Reconciliation) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Residential mortgage loans - FVO | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, beginning of period | $ 276 | $ 438 | $ 299 | $ 520 |
Total realized/unrealized gains (losses) included in net income (loss) | 4 | 1 | 6 | 3 |
Total realized/unrealized gains (losses) included in AOCI | 0 | 0 | 0 | 0 |
Purchases | 0 | 0 | 0 | 0 |
Sales | (9) | (17) | (25) | (81) |
Issuances | 0 | 0 | 0 | 0 |
Settlements | (9) | (17) | (18) | (37) |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Balance, end of period | 262 | 405 | 262 | 405 |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 1 | (1) | 1 | (8) |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 1 | (1) | 1 | (8) |
Net Derivatives | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 53 | (6) | 61 | 11 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Balance, beginning of period | (87) | (293) | (192) | (191) |
Total realized/unrealized gains (losses) included in net income (loss) | 61 | (24) | 76 | (71) |
Total realized/unrealized gains (losses) included in AOCI | 136 | (8) | 224 | (112) |
Purchases | 4 | 4 | 4 | 4 |
Sales | 0 | 0 | 0 | 0 |
Issuances | (1) | 0 | (1) | 0 |
Settlements | (40) | 46 | (38) | 95 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Balance, end of period | 73 | (275) | 73 | (275) |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 53 | (6) | 61 | 11 |
Net Embedded Derivatives | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | (323) | 207 | (420) | 542 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Balance, beginning of period | (847) | (591) | (704) | (876) |
Total realized/unrealized gains (losses) included in net income (loss) | (325) | 206 | (423) | 539 |
Total realized/unrealized gains (losses) included in AOCI | 0 | 0 | 0 | 0 |
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | (47) | (52) | (92) | (100) |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Balance, end of period | (1,219) | (437) | (1,219) | (437) |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | (323) | 207 | (420) | 542 |
Corporate fixed maturity securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, beginning of period | 7,330 | 7,295 | 7,101 | 7,586 |
Total realized/unrealized gains (losses) included in net income (loss) | 0 | 5 | (3) | 9 |
Total realized/unrealized gains (losses) included in AOCI | 126 | (227) | 349 | (258) |
Purchases | 416 | 637 | 637 | 927 |
Sales | (205) | (559) | (257) | (1,016) |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 77 | 0 | 174 | 124 |
Transfers out of Level 3 | (94) | (87) | (351) | (308) |
Balance, end of period | 7,650 | 7,064 | 7,650 | 7,064 |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | (2) | (1) | (4) | (1) |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | (2) | (1) | (4) | (1) |
Structured Securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, beginning of period | 3,314 | 3,852 | 3,541 | 4,076 |
Total realized/unrealized gains (losses) included in net income (loss) | 11 | 20 | 24 | 43 |
Total realized/unrealized gains (losses) included in AOCI | 24 | 4 | 42 | 11 |
Purchases | 194 | 652 | 275 | 656 |
Sales | (175) | (202) | (297) | (423) |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 6 | 2 | 6 | 48 |
Transfers out of Level 3 | (132) | (458) | (349) | (541) |
Balance, end of period | 3,242 | 3,870 | 3,242 | 3,870 |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 11 | 18 | 24 | 38 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 11 | 18 | 24 | 38 |
Foreign government | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, beginning of period | 21 | 13 | 10 | 31 |
Total realized/unrealized gains (losses) included in net income (loss) | 0 | 0 | 0 | 0 |
Total realized/unrealized gains (losses) included in AOCI | 0 | (1) | 0 | (1) |
Purchases | 0 | 0 | 0 | 0 |
Sales | (2) | (1) | (1) | (1) |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 1 | 0 | 1 | 0 |
Transfers out of Level 3 | (10) | 0 | 0 | (18) |
Balance, end of period | 10 | 11 | 10 | 11 |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 0 | 0 | 0 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 0 | 0 | 0 | 0 |
Municipals | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, beginning of period | 0 | 0 | 0 | 0 |
Total realized/unrealized gains (losses) included in net income (loss) | 0 | 0 | 0 | 0 |
Total realized/unrealized gains (losses) included in AOCI | 0 | 0 | 0 | 0 |
Purchases | 7 | 0 | 7 | 0 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Balance, end of period | 7 | 0 | 7 | 0 |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 0 | 0 | 0 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 0 | 0 | 0 | 0 |
Equity Securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, beginning of period | 366 | 359 | 356 | 366 |
Total realized/unrealized gains (losses) included in net income (loss) | (4) | (5) | 24 | (11) |
Total realized/unrealized gains (losses) included in AOCI | 0 | 0 | 0 | 0 |
Purchases | 6 | 5 | 9 | 5 |
Sales | (16) | (14) | (37) | (15) |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Balance, end of period | 352 | 345 | 352 | 345 |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | (5) | 0 | 12 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | (5) | 0 | 12 | 0 |
Short-term Investments | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, beginning of period | 127 | 550 | 25 | 7 |
Total realized/unrealized gains (losses) included in net income (loss) | 0 | 0 | 0 | 0 |
Total realized/unrealized gains (losses) included in AOCI | 0 | 0 | 0 | (1) |
Purchases | 11 | 2 | 113 | 552 |
Sales | (25) | 0 | (25) | (1) |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | (5) |
Balance, end of period | 113 | 552 | 113 | 552 |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 0 | 0 | 0 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 0 | 0 | 0 | 0 |
Other Investments | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, beginning of period | 238 | 0 | 215 | 0 |
Total realized/unrealized gains (losses) included in net income (loss) | 10 | 0 | 33 | 0 |
Total realized/unrealized gains (losses) included in AOCI | 0 | 0 | 0 | 0 |
Purchases | 20 | 0 | 20 | 0 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Balance, end of period | 268 | 0 | 268 | 0 |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 10 | 0 | 33 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 10 | 0 | 33 | 0 |
Separate Accounts | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, beginning of period | 897 | 1,222 | 937 | 958 |
Total realized/unrealized gains (losses) included in net income (loss) | 2 | (1) | 6 | 1 |
Total realized/unrealized gains (losses) included in AOCI | 0 | 0 | 0 | 0 |
Purchases | 101 | 270 | 124 | 307 |
Sales | (75) | (321) | (140) | (147) |
Issuances | 3 | (2) | 2 | (3) |
Settlements | (3) | 2 | (2) | 1 |
Transfers into Level 3 | 0 | 71 | 0 | 99 |
Transfers out of Level 3 | 0 | (103) | (2) | (78) |
Balance, end of period | 925 | 1,138 | 925 | 1,138 |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 0 | 0 | 0 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | $ 0 | $ 0 | $ 0 | $ 0 |
Fair Value (Fair Value Option f
Fair Value (Fair Value Option for Residential Mortgage Loans) (Details) - Residential mortgage loans - FVO - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Unpaid principal balance | $ 309 | $ 344 |
Difference between estimated fair value and unpaid principal balance | (47) | (45) |
Carrying value at estimated fair value | 262 | 299 |
Loans in nonaccrual status | 71 | 89 |
Loans more than 90 days past due | 28 | 41 |
Loans in nonaccrual status or more than 90 days past due, or both - difference between aggregate estimated fair value and unpaid principal balance | $ (33) | $ (36) |
Fair Value (Financial Instrumen
Fair Value (Financial Instruments Carried at Other Than Fair Value) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Assets | ||
Policy loans | $ 6,064 | $ 6,061 |
Liabilities | ||
Separate account liabilities | 120,172 | 110,850 |
Carrying Value | ||
Assets | ||
Mortgage loans | 64,409 | 63,388 |
Policy loans | 6,064 | 6,061 |
Other invested assets | 2,973 | 2,940 |
Premiums, reinsurance and other receivables | 14,342 | 14,228 |
Liabilities | ||
Policyholder account balances | 74,364 | 72,194 |
Long-term debt | 1,549 | 1,562 |
Other liabilities | 13,671 | 13,593 |
Separate account liabilities | 54,884 | 50,578 |
Estimated Fair Value | ||
Assets | ||
Mortgage loans | 66,590 | 64,409 |
Policy loans | 7,174 | 6,981 |
Other invested assets | 2,844 | 2,819 |
Premiums, reinsurance and other receivables | 15,073 | 14,786 |
Liabilities | ||
Policyholder account balances | 76,592 | 72,689 |
Long-term debt | 1,846 | 1,746 |
Other liabilities | 13,811 | 13,637 |
Separate account liabilities | 54,884 | 50,578 |
Estimated Fair Value | Level 1 | ||
Assets | ||
Mortgage loans | 0 | 0 |
Policy loans | 0 | 0 |
Other invested assets | 0 | 0 |
Premiums, reinsurance and other receivables | 0 | 0 |
Liabilities | ||
Policyholder account balances | 0 | 0 |
Long-term debt | 0 | 0 |
Other liabilities | 0 | 0 |
Separate account liabilities | 0 | 0 |
Estimated Fair Value | Level 2 | ||
Assets | ||
Mortgage loans | 0 | 0 |
Policy loans | 267 | 269 |
Other invested assets | 2,700 | 2,673 |
Premiums, reinsurance and other receivables | 366 | 113 |
Liabilities | ||
Policyholder account balances | 0 | 0 |
Long-term debt | 1,846 | 1,746 |
Other liabilities | 677 | 448 |
Separate account liabilities | 54,884 | 50,578 |
Estimated Fair Value | Level 3 | ||
Assets | ||
Mortgage loans | 66,590 | 64,409 |
Policy loans | 6,907 | 6,712 |
Other invested assets | 144 | 146 |
Premiums, reinsurance and other receivables | 14,707 | 14,673 |
Liabilities | ||
Policyholder account balances | 76,592 | 72,689 |
Long-term debt | 0 | 0 |
Other liabilities | 13,134 | 13,189 |
Separate account liabilities | $ 0 | $ 0 |
Leases Lease Costs (Details)
Leases Lease Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Lease Costs [Abstract] | ||||
Operating lease cost | $ 29 | $ 58 | ||
Variable lease cost | 3 | 6 | ||
Sublease Income | (20) | $ (17) | (40) | $ (28) |
Net lease cost | $ 12 | $ 24 |
Leases (Details)
Leases (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Assets and Liabilities, Lessee [Abstract] | |
ROU asset | $ 823 |
Lease liability | 917 |
Cash paid for amounts included in the measurement of lease liability - operating cash flows | 48 |
ROU assets obtained in exchange for new lease liabilities | $ 141 |
Weighted-average remaining lease term | 9 years |
Weighted-average discount rate | 3.90% |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |
Remainder of 2019 | $ 65 |
2020 | 124 |
2021 | 125 |
2022 | 123 |
2023 | 112 |
Thereafter | 554 |
Total undiscounted cash flows | 1,103 |
Less: interest | 186 |
Lease liability | $ 917 |
Leases - Prior to adoption (Det
Leases - Prior to adoption (Details) $ in Millions | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 125 |
2020 | 137 |
2021 | 136 |
2022 | 134 |
2023 | 122 |
Thereafter | 567 |
Total | $ 1,221 |
Leases - (Narrative) (Details)
Leases - (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Lessee, Lease, Description [Line Items] | ||||
Operating Leases, Rent Expense, Net | $ 29 | $ 58 | ||
Sublease Income | $ 20 | $ 17 | $ 40 | $ 28 |
Minimum | ||||
Lessee, Lease, Description [Line Items] | ||||
Lessee, Operating Lease, Term of Contract | 1 year | 1 year | ||
Maximum | ||||
Lessee, Lease, Description [Line Items] | ||||
Lessee, Operating Lease, Term of Contract | 12 years | 12 years | ||
Sublease Income | Minimum | ||||
Lessee, Lease, Description [Line Items] | ||||
Lessee, Operating Lease, Term of Contract | 1 year | 1 year | ||
Sublease Income | Maximum | ||||
Lessee, Lease, Description [Line Items] | ||||
Lessee, Operating Lease, Term of Contract | 10 years | 10 years |
Equity (Components of Accumulat
Equity (Components of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance, beginning of period | $ 6,517 | $ 3,985 | $ 3,562 | $ 5,428 |
OCI before reclassifications | 3,245 | (2,037) | 6,939 | (4,901) |
Deferred income tax benefit (expense) | (694) | 423 | (1,466) | 1,035 |
AOCI before reclassifications, net of income tax | 9,068 | 2,371 | 9,035 | 1,562 |
Amounts reclassified from AOCI | (97) | 513 | (78) | 370 |
Deferred income tax benefit (expense) | 19 | (97) | 16 | (69) |
Amounts reclassified from AOCI, net of income tax | (78) | 416 | (62) | 301 |
Balance, end of period | 8,990 | 2,787 | 8,990 | 2,787 |
Unrealized Investment Gains (Losses), Net of Related Offsets | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance, beginning of period | 5,410 | 5,597 | 2,515 | 6,351 |
OCI before reclassifications | 2,733 | (2,204) | 6,337 | (4,584) |
Deferred income tax benefit (expense) | (586) | 470 | (1,340) | 985 |
AOCI before reclassifications, net of income tax | 7,557 | 3,863 | 7,512 | 2,752 |
Amounts reclassified from AOCI | (60) | 89 | (2) | 99 |
Deferred income tax benefit (expense) | 12 | (19) | 0 | (21) |
Amounts reclassified from AOCI, net of income tax | (48) | 70 | (2) | 78 |
Balance, end of period | 7,509 | 3,933 | 7,509 | 3,933 |
Unrealized Gains (Losses) on Derivatives | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance, beginning of period | 1,438 | 563 | 1,382 | 906 |
OCI before reclassifications | 523 | 177 | 617 | (329) |
Deferred income tax benefit (expense) | (109) | (48) | (130) | 55 |
AOCI before reclassifications, net of income tax | 1,852 | 692 | 1,869 | 632 |
Amounts reclassified from AOCI | (44) | 393 | (89) | 209 |
Deferred income tax benefit (expense) | 9 | (72) | 19 | (35) |
Amounts reclassified from AOCI, net of income tax | (35) | 321 | (70) | 174 |
Balance, end of period | 1,817 | 1,013 | 1,817 | 1,013 |
Foreign Currency Translation Adjustments | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance, beginning of period | (74) | (38) | (74) | (47) |
OCI before reclassifications | (11) | (10) | (14) | 12 |
Deferred income tax benefit (expense) | 1 | 1 | 4 | (5) |
AOCI before reclassifications, net of income tax | (84) | (47) | (84) | (40) |
Amounts reclassified from AOCI | 0 | 0 | 0 | 0 |
Deferred income tax benefit (expense) | 0 | 0 | 0 | 0 |
Amounts reclassified from AOCI, net of income tax | 0 | 0 | 0 | 0 |
Balance, end of period | (84) | (47) | (84) | (47) |
Defined Benefit Plans Adjustment | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance, beginning of period | (257) | (2,137) | (261) | (1,782) |
OCI before reclassifications | 0 | 0 | (1) | 0 |
Deferred income tax benefit (expense) | 0 | 0 | 0 | 0 |
AOCI before reclassifications, net of income tax | (257) | (2,137) | (262) | (1,782) |
Amounts reclassified from AOCI | 7 | 31 | 13 | 62 |
Deferred income tax benefit (expense) | (2) | (6) | (3) | (13) |
Amounts reclassified from AOCI, net of income tax | 5 | 25 | 10 | 49 |
Balance, end of period | $ (252) | $ (2,112) | (252) | (2,112) |
Accounting Standards Update 2017-12 | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Amounts reclassified from AOCI | 21 | |||
Deferred income tax benefit (expense) | (4) | |||
Amounts reclassified from AOCI, net of income tax | 17 | |||
Accounting Standards Update 2017-12 | Unrealized Investment Gains (Losses), Net of Related Offsets | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Amounts reclassified from AOCI | (1) | |||
Deferred income tax benefit (expense) | 0 | |||
Amounts reclassified from AOCI, net of income tax | (1) | |||
Accounting Standards Update 2017-12 | Unrealized Gains (Losses) on Derivatives | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Amounts reclassified from AOCI | 22 | |||
Deferred income tax benefit (expense) | (4) | |||
Amounts reclassified from AOCI, net of income tax | 18 | |||
Accounting Standards Update 2017-12 | Foreign Currency Translation Adjustments | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Amounts reclassified from AOCI | 0 | |||
Deferred income tax benefit (expense) | 0 | |||
Amounts reclassified from AOCI, net of income tax | 0 | |||
Accounting Standards Update 2017-12 | Defined Benefit Plans Adjustment | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Amounts reclassified from AOCI | 0 | |||
Deferred income tax benefit (expense) | 0 | |||
Amounts reclassified from AOCI, net of income tax | $ 0 | |||
Accounting Standards Update 2016-01 | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Amounts reclassified from AOCI | (119) | |||
Deferred income tax benefit (expense) | 1,043 | |||
Amounts reclassified from AOCI, net of income tax | 924 | |||
Accounting Standards Update 2016-01 | Unrealized Investment Gains (Losses), Net of Related Offsets | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Amounts reclassified from AOCI | (119) | |||
Deferred income tax benefit (expense) | 1,222 | |||
Amounts reclassified from AOCI, net of income tax | 1,103 | |||
Accounting Standards Update 2016-01 | Unrealized Gains (Losses) on Derivatives | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Amounts reclassified from AOCI | 0 | |||
Deferred income tax benefit (expense) | 207 | |||
Amounts reclassified from AOCI, net of income tax | 207 | |||
Accounting Standards Update 2016-01 | Foreign Currency Translation Adjustments | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Amounts reclassified from AOCI | 0 | |||
Deferred income tax benefit (expense) | (7) | |||
Amounts reclassified from AOCI, net of income tax | (7) | |||
Accounting Standards Update 2016-01 | Defined Benefit Plans Adjustment | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Amounts reclassified from AOCI | 0 | |||
Deferred income tax benefit (expense) | (379) | |||
Amounts reclassified from AOCI, net of income tax | $ (379) |
Equity (Reclassifications Out o
Equity (Reclassifications Out of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Net investment gains (losses) | $ 66 | $ (30) | $ 12 | $ (226) | ||
Net derivative gains (losses) | 208 | 305 | (102) | 365 | ||
Net investment income | 2,794 | 2,684 | 5,439 | 5,385 | ||
Income (loss) before provision for income tax | 1,223 | 1,100 | 1,731 | 1,835 | ||
Income tax (expense) benefit | (156) | (93) | (156) | (156) | ||
Net income (loss) | 1,067 | $ 508 | 1,007 | $ 672 | 1,575 | 1,679 |
Reclassification out of Accumulated Other Comprehensive Income | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Net income (loss) | 78 | (416) | 62 | (301) | ||
Reclassification out of Accumulated Other Comprehensive Income | Unrealized Investment Gains (Losses), Net of Related Offsets | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Net investment gains (losses) | 82 | (58) | 41 | (105) | ||
Net derivative gains (losses) | (22) | (38) | (39) | (4) | ||
Net investment income | 0 | 7 | 0 | 10 | ||
Income (loss) before provision for income tax | 60 | (89) | 2 | (99) | ||
Income tax (expense) benefit | (12) | 19 | 0 | 21 | ||
Net income (loss) | 48 | (70) | 2 | (78) | ||
Reclassification out of Accumulated Other Comprehensive Income | Unrealized Gains (Losses) on Derivatives | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Income (loss) before provision for income tax | 44 | (393) | 89 | (209) | ||
Income tax (expense) benefit | (9) | 72 | (19) | 35 | ||
Net income (loss) | 35 | (321) | 70 | (174) | ||
Reclassification out of Accumulated Other Comprehensive Income | Unrealized Gains (Losses) on Derivatives | Interest rate derivatives | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Net investment gains (losses) | 5 | 0 | (1) | 0 | ||
Net derivative gains (losses) | 0 | 0 | 0 | 20 | ||
Net investment income | 6 | 6 | 11 | 10 | ||
Reclassification out of Accumulated Other Comprehensive Income | Unrealized Gains (Losses) on Derivatives | Foreign currency swaps | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Net investment gains (losses) | 34 | 0 | 81 | 0 | ||
Net derivative gains (losses) | 0 | (398) | 0 | (238) | ||
Net investment income | (1) | (1) | (2) | (1) | ||
Reclassification out of Accumulated Other Comprehensive Income | Defined Benefit Plans Adjustment | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Amortization of net actuarial gains (losses) | (7) | (35) | (14) | (71) | ||
Amortization of prior service (costs) credit | 0 | 4 | 1 | 9 | ||
Income (loss) before provision for income tax | (7) | (31) | (13) | (62) | ||
Income tax (expense) benefit | 2 | 6 | 3 | 13 | ||
Net income (loss) | $ (5) | $ (25) | $ (10) | $ (49) |
Other Revenues (Details)
Other Revenues (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 191 | $ 203 | $ 394 | $ 402 |
Other revenues | 403 | 401 | 804 | 802 |
Prepaid legal plans | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 82 | 73 | 163 | 146 |
Recordkeeping and administrative services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 51 | 55 | 101 | 113 |
Administrative services-only contracts | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 53 | 53 | 106 | 109 |
Other revenue from service contracts from customers | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 5 | 22 | 24 | 34 |
Other Income | ||||
Disaggregation of Revenue [Line Items] | ||||
Other revenues | $ 212 | $ 198 | $ 410 | $ 400 |
Other Expenses (Other Expenses)
Other Expenses (Other Expenses) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Other Income and Expenses [Abstract] | ||||
General and administrative expenses | $ 629 | $ 649 | $ 1,199 | $ 1,340 |
Pension, postretirement and postemployment benefit costs | 26 | 17 | 52 | 34 |
Premium taxes, other taxes, and licenses & fees | 76 | 88 | 153 | 183 |
Commissions and other variable expenses | 454 | 425 | 895 | 872 |
Capitalization of DAC | (17) | (9) | (29) | (19) |
Amortization of DAC and VOBA | 41 | 79 | 60 | 167 |
Interest expense on debt | 26 | 28 | 53 | 54 |
Total other expenses | $ 1,235 | $ 1,277 | $ 2,383 | $ 2,631 |
Employee Benefit Plans (Net Per
Employee Benefit Plans (Net Periodic Benefit Costs) (Details) - Domestic Plan - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Pension Benefits | ||||
Net periodic benefit costs [Abstract] | ||||
Service costs | $ 5 | $ 39 | $ 9 | $ 79 |
Interest costs | 11 | 93 | 23 | 186 |
Expected return on plan assets | 0 | (132) | 0 | (263) |
Amortization of net actuarial (gains) losses | 7 | 44 | 14 | 88 |
Amortization of prior service costs (credit) | 0 | 0 | (1) | 0 |
Allocated to affiliates | 18 | 23 | 34 | 52 |
Net periodic benefit costs (credit) | 18 | 23 | 34 | 52 |
Pension Benefits | Affiliated Entity | ||||
Net periodic benefit costs [Abstract] | ||||
Allocated to affiliates | (5) | (21) | (11) | (38) |
Net periodic benefit costs (credit) | (5) | (21) | (11) | (38) |
Other Postretirement Benefits | ||||
Net periodic benefit costs [Abstract] | ||||
Service costs | 0 | 2 | 0 | 3 |
Interest costs | 0 | 14 | 0 | 25 |
Expected return on plan assets | 0 | (18) | 0 | (36) |
Amortization of net actuarial (gains) losses | 0 | (9) | 0 | (17) |
Amortization of prior service costs (credit) | 0 | (4) | 0 | (9) |
Allocated to affiliates | 0 | (7) | 0 | (21) |
Net periodic benefit costs (credit) | 0 | (7) | 0 | (21) |
Other Postretirement Benefits | Affiliated Entity | ||||
Net periodic benefit costs [Abstract] | ||||
Allocated to affiliates | 0 | 8 | 0 | 13 |
Net periodic benefit costs (credit) | $ 0 | $ 8 | $ 0 | $ 13 |
Income Tax (Narrative) (Details
Income Tax (Narrative) (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Effective Income Tax Rate Reconciliation, Percent | 13.00% | 9.00% | 9.00% | 9.00% |
Contingencies, Commitments an_2
Contingencies, Commitments and Guarantees (Contingencies - Narrative) (Details) $ in Millions | Jul. 29, 2019USD ($) | Jun. 30, 2019USD ($)Claims | Jun. 30, 2018Claims | Dec. 31, 2018Claims |
Minimum | ||||
Loss Contingencies | ||||
Loss Contingency, Range of Possible Loss, Portion Not Accrued | $ 0 | |||
Maximum | ||||
Loss Contingencies | ||||
Loss Contingency, Range of Possible Loss, Portion Not Accrued | $ 175 | |||
Asbestos Related Claims | ||||
Loss Contingencies | ||||
Asbestos-Related Claims | Claims | 1,705 | 1,754 | 3,359 | |
Subsequent Event [Member] | ||||
Loss Contingencies | ||||
Maximum estimate of aggregate costs to resolve matter | $ 80 |
Contingencies, Commitments an_3
Contingencies, Commitments and Guarantees (Commitments and Guarantees - Narrative) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Contingencies, Commitments and Guarantees [Abstract] | ||
Liabilities for indemnities, guarantees and commitments | $ 5 | $ 5 |
Cumulative maximum indemnities and guarantees contractual limitation | 793 | |
Minimum | ||
Contingencies, Commitments and Guarantees [Abstract] | ||
Indemnities and guarantees contractual limitation range | 1 | |
Maximum | ||
Contingencies, Commitments and Guarantees [Abstract] | ||
Indemnities and guarantees contractual limitation range | 421 | |
Mortgage Loan Commitments | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability | 3,500 | 3,600 |
Commitments to Fund Partnership Investments, Bank Credit Facilities, Bridge Loans and Private Corporate Bond Investments | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability | $ 4,600 | $ 4,600 |
Related Party Transactions (Ser
Related Party Transactions (Service Agreements - Narrative) (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 | |
Related Party Transaction [Line Items] | |||||
Other expenses | $ 1,235 | $ 1,277 | $ 2,383 | $ 2,631 | |
Revenues | 9,146 | 14,809 | 17,383 | 23,255 | |
Net receivables (payables) due from (to) affiliates | (170) | (170) | $ (181) | ||
Affiliated Entity | Services Necessary To Conduct The Company's Activities | |||||
Related Party Transaction [Line Items] | |||||
Other expenses | 704 | 468 | 1,400 | 984 | |
Revenues | 7 | 57 | 14 | 115 | |
Affiliated Entity | Services Necessary To Conduct The Affiliates' Activities | |||||
Related Party Transaction [Line Items] | |||||
Other expenses | $ 0 | $ 409 | $ 0 | $ 707 |
Related Party Transactions (Eff
Related Party Transactions (Effects of Affiliated Reinsurance on Statements of Operations) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Premiums: | ||||
Net premiums | $ 5,154 | $ 10,920 | $ 10,206 | $ 15,869 |
Universal life and investment-type product policy fees: | ||||
Net universal life and investment-type product policy fees | 521 | 529 | 1,024 | 1,060 |
Other revenues: | ||||
Net other revenues | 403 | 401 | 804 | 802 |
Policyholder benefits and claims: | ||||
Net policyholder benefits and claims | 5,765 | 11,552 | 11,427 | 17,066 |
Interest Credited To Policyholder Account Balances [Abstract] | ||||
Net interest credited to policyholder account balances | 663 | 612 | 1,325 | 1,193 |
Other expenses: | ||||
Net other expenses | 1,235 | 1,277 | 2,383 | 2,631 |
Affiliated Entity | Assumed Reinsurance [Member] | ||||
Premiums: | ||||
Reinsurance assumed | 2 | 2 | 5 | 5 |
Universal life and investment-type product policy fees: | ||||
Reinsurance assumed | 0 | (3) | 0 | (2) |
Other revenues: | ||||
Reinsurance assumed | (5) | 2 | (9) | 5 |
Policyholder benefits and claims: | ||||
Reinsurance assumed | 1 | 0 | 2 | 4 |
Interest Credited To Policyholder Account Balances [Abstract] | ||||
Reinsurance assumed | 8 | 11 | 15 | 22 |
Other expenses: | ||||
Reinsurance assumed | 0 | 2 | 0 | 10 |
Affiliated Entity | Ceded Reinsurance [Member] | ||||
Premiums: | ||||
Reinsurance ceded | (27) | (31) | (59) | (63) |
Universal life and investment-type product policy fees: | ||||
Reinsurance ceded | (3) | (5) | (9) | (10) |
Other revenues: | ||||
Reinsurance ceded | 139 | 130 | 266 | 263 |
Policyholder benefits and claims: | ||||
Reinsurance ceded | (25) | (29) | (58) | (57) |
Interest Credited To Policyholder Account Balances [Abstract] | ||||
Reinsurance ceded | (3) | (3) | (6) | (6) |
Other expenses: | ||||
Reinsurance ceded | 139 | 126 | 264 | 258 |
Affiliated Entity | Reinsurance [Member] | ||||
Premiums: | ||||
Net premiums | (25) | (29) | (54) | (58) |
Universal life and investment-type product policy fees: | ||||
Net universal life and investment-type product policy fees | (3) | (8) | (9) | (12) |
Other revenues: | ||||
Net other revenues | 134 | 132 | 257 | 268 |
Policyholder benefits and claims: | ||||
Net policyholder benefits and claims | (24) | (29) | (56) | (53) |
Interest Credited To Policyholder Account Balances [Abstract] | ||||
Net interest credited to policyholder account balances | 5 | 8 | 9 | 16 |
Other expenses: | ||||
Net other expenses | $ 139 | $ 128 | $ 264 | $ 268 |
Related Party Transactions (E_2
Related Party Transactions (Effects of Affiliated Reinsurance on Balance Sheets) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Assets | ||
Premiums, reinsurance and other receivables | $ 22,752 | $ 21,829 |
Deferred policy acquisition costs and value of business acquired | 3,687 | 4,117 |
Liabilities: | ||
Policyholder account balances | 92,625 | 90,656 |
Other policy-related balances | 7,609 | 7,264 |
Other Liabilities | 26,502 | 24,620 |
Assumed Reinsurance [Member] | Affiliated Entity | ||
Assets | ||
Premiums, reinsurance and other receivables | 0 | 0 |
Deferred policy acquisition costs and value of business acquired | 0 | 0 |
Total assets | 0 | 0 |
Liabilities: | ||
Liability for Future Policy Benefit, before Reinsurance | 57 | 61 |
Policyholder account balances | 135 | 141 |
Other policy-related balances | 1 | 6 |
Other Liabilities | 842 | 841 |
Total liabilities | 1,035 | 1,049 |
Ceded Reinsurance [Member] | Affiliated Entity | ||
Assets | ||
Premiums, reinsurance and other receivables | 12,587 | 12,676 |
Deferred policy acquisition costs and value of business acquired | (165) | (175) |
Total assets | 12,422 | 12,501 |
Liabilities: | ||
Liability for Future Policy Benefit, before Reinsurance | (6) | (1) |
Policyholder account balances | 0 | 0 |
Other policy-related balances | 10 | 12 |
Other Liabilities | 12,688 | 12,366 |
Total liabilities | $ 12,692 | $ 12,377 |
Related Party Transactions (Rei
Related Party Transactions (Reinsurance Transactions - Narrative) (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 | |
Reinsurance Disclosures [Abstract] | |||||
Embedded Derivative, Fair Value of Embedded Derivative Liability | $ 1,219 | $ 1,219 | $ 704 | ||
Premiums, reinsurance and other receivables (includes $3 and $2, respectively, relating to variable interest entities) | 22,752 | 22,752 | 21,829 | ||
Policyholder Contract Deposit | 92,625 | 92,625 | 90,656 | ||
Other Liabilities | $ 26,502 | $ 26,502 | 24,620 | ||
Affiliated Entity | Funds Withheld On Ceded Reinsurance [Member] | |||||
Reinsurance Disclosures [Abstract] | |||||
Coinsurance Funds Withheld Basis, Percent | 75.00% | 75.00% | |||
Embedded Derivative, Fair Value of Embedded Derivative Liability | $ 21 | $ 21 | 4 | ||
Net derivatives gains (losses) | (9) | $ 4 | (17) | $ 10 | |
Affiliated Entity | Closed Block Liabilities Ceded To MetLife Reinsurance Of Charleston [Member] | |||||
Reinsurance Disclosures [Abstract] | |||||
Embedded Derivative, Fair Value of Embedded Derivative Liability | 909 | 909 | 461 | ||
Net derivatives gains (losses) | (226) | $ 128 | (448) | $ 363 | |
Ceded Reinsurance [Member] | Affiliated Entity | |||||
Reinsurance Disclosures [Abstract] | |||||
Premiums, reinsurance and other receivables (includes $3 and $2, respectively, relating to variable interest entities) | 12,587 | 12,587 | 12,676 | ||
Liability for Future Policy Benefit, before Reinsurance | (6) | (6) | (1) | ||
Policyholder Contract Deposit | 0 | 0 | 0 | ||
Other Liabilities | $ 12,688 | $ 12,688 | $ 12,366 |