☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 80-0873306 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) | |
6620 West Broad Street Richmond, Virginia | 23230 (Zip Code) | |
(Address of principal executive offices) |
Large accelerated filer | ☒ | Accelerated filer | ☐ | |||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | |||
Emerging growth company | ☐ |
Title of Each Class | Trading Symbol | Name of each exchange on which registered | ||
Class A Common Stock, par value $.001 per share | GNW | New York Stock Exchange |
Page | ||||||
PART I—FINANCIAL INFORMATION | ||||||
Item 1. | 3 | |||||
3 | ||||||
4 | ||||||
5 | ||||||
6 | ||||||
8 | ||||||
9 | ||||||
Item 2. | 99 | |||||
Item 3. | ||||||
Item 4. | ||||||
PART II—OTHER INFORMATION | ||||||
Item 1. | ||||||
Item 1A. | ||||||
Item 2. | ||||||
Item 5. | ||||||
Item 6. | ||||||
Signatures |
June 30, 2023 | December 31, 2022 | |||||||
(As adjusted) | ||||||||
Assets | ||||||||
Investments: | ||||||||
Fixed maturity securities available-for-sale, at fair value (amortized cost of $49,864 and $50,834, respectively, and allowance for credit losses of $4 and $—, respectively, as of June 30, 2023 and December 31, 2022) | $ | 46,070 | $ | 46,583 | ||||
Equity securities, at fair value | 378 | 319 | ||||||
Commercial mortgage loans (net of unamortized balance of loan origination fees and costs of $4 as of June 30, 2023 and December 31, 2022) | 6,876 | 7,032 | ||||||
Less: Allowance for credit losses | (24 | ) | (22 | ) | ||||
Commercial mortgage loans, net | 6,852 | 7,010 | ||||||
Policy loans | 2,270 | 2,139 | ||||||
Limited partnerships | 2,585 | 2,331 | ||||||
Other invested assets | 648 | 566 | ||||||
Total investments | 58,803 | 58,948 | ||||||
Cash, cash equivalents and restricted cash | 2,173 | 1,799 | ||||||
Accrued investment income | 553 | 643 | ||||||
Deferred acquisition costs | 2,096 | 2,211 | ||||||
Intangible assets | 201 | 203 | ||||||
Reinsurance recoverable | 19,113 | 19,059 | ||||||
Less: Allowance for credit losses | (64 | ) | (63 | ) | ||||
Reinsurance recoverable, net | 19,049 | 18,996 | ||||||
Other assets | 445 | 488 | ||||||
Deferred tax asset | 1,954 | 1,983 | ||||||
Market risk benefit assets | 37 | 26 | ||||||
Separate account assets | 4,533 | 4,417 | ||||||
Total assets | $ | 89,844 | $ | 89,714 | ||||
Liabilities and equity | ||||||||
Liabilities: | ||||||||
Future policy benefits | $ | 56,443 | $ | 55,407 | ||||
Policyholder account balances | 15,922 | 16,564 | ||||||
Market risk benefit liabilities | 666 | 748 | ||||||
Liability for policy and contract claims | 628 | 683 | ||||||
Unearned premiums | 175 | 203 | ||||||
Other liabilities | 1,607 | 1,687 | ||||||
Long-term borrowings | 1,601 | 1,611 | ||||||
Separate account liabilities | 4,533 | 4,417 | ||||||
Liabilities related to discontinued operations | 2 | 8 | ||||||
Total liabilities | 81,577 | 81,328 | ||||||
Commitments and contingencies (Note 18) | ||||||||
Equity: | ||||||||
Class A common stock, $0.001 par value; 1.5 billion shares authorized; 603 million and 600 million shares issued as of June 30, 2023 and December 31, 2022, respectively; 467 million and 495 million shares outstanding as of June 30, 2023 and December 31, 2022, respectively | 1 | 1 | ||||||
Additional paid-in capital | 11,869 | 11,869 | ||||||
Accumulated other comprehensive income (loss) | (2,861 | ) | (2,614 | ) | ||||
Retained earnings | 1,398 | 1,139 | ||||||
Treasury stock, at cost (136 million and 105 million shares as of June 30, 2023 and December 31, 2022, respectively) | (2,947 | ) | (2,764 | ) | ||||
Total Genworth Financial, Inc.’s stockholders’ equity | 7,460 | 7,631 | ||||||
Noncontrolling interests | 807 | 755 | ||||||
Total equity | 8,267 | 8,386 | ||||||
Total liabilities and equity | $ | 89,844 | $ | 89,714 | ||||
September 30, 2023 | December 31, 2022 | |||||||
(As adjusted) | ||||||||
Assets | ||||||||
Investments: | ||||||||
Fixed maturity securities available-for-sale, | $ | 43,968 | $ | 46,583 | ||||
Equity securities, at fair value | 363 | 319 | ||||||
Commercial mortgage loans (net of unamortized balance of loan origination fees and costs of $4 as of September 30, 2023 and December 31, 2022) | 6,818 | 7,032 | ||||||
Less: Allowance for credit losses | (25 | ) | (22 | ) | ||||
Commercial mortgage loans, net | 6,793 | 7,010 | ||||||
Policy loans | 2,233 | 2,139 | ||||||
Limited partnerships | 2,699 | 2,331 | ||||||
Other invested assets | 645 | 566 | ||||||
Total investments | 56,701 | 58,948 | ||||||
Cash, cash equivalents and restricted cash | 1,993 | 1,799 | ||||||
Accrued investment income | 620 | 643 | ||||||
Deferred acquisition costs | 2,042 | 2,211 | ||||||
Intangible assets | 199 | 203 | ||||||
Reinsurance recoverable | 17,623 | 19,059 | ||||||
Less: Allowance for credit losses | (28 | ) | (63 | ) | ||||
Reinsurance recoverable, net | 17,595 | 18,996 | ||||||
Other assets | 453 | 488 | ||||||
Deferred tax asset | 1,580 | 1,983 | ||||||
Market risk benefit assets | 39 | 26 | ||||||
Separate account assets | 4,244 | 4,417 | ||||||
Total assets | $ | 85,466 | $ | 89,714 | ||||
Liabilities and equity | ||||||||
Liabilities: | ||||||||
Future policy benefits | $ | 51,740 | $ | 55,407 | ||||
Policyholder account balances | 15,590 | 16,564 | ||||||
Market risk benefit liabilities | 579 | 748 | ||||||
Liability for policy and contract claims | 631 | 683 | ||||||
Unearned premiums | 162 | 203 | ||||||
Other liabilities | 2,038 | 1,687 | ||||||
Long-term borrowings | 1,602 | 1,611 | ||||||
Separate account liabilities | 4,244 | 4,417 | ||||||
Liabilities related to discontinued operations | 2 | 8 | ||||||
Total liabilities | 76,588 | 81,328 | ||||||
Commitments and contingencies (Note 19) | ||||||||
Equity: | ||||||||
Class A common stock, $0.001 par value; 1,500,000,000 shares authorized; 603,151,611 and 600,036,269 shares issued as of September 30, 2023 and December 31, 2022, respectively; 452,722,552 and 495,446,960 shares outstanding as of September 30, 2023 and December 31, 2022, respectively | 1 | 1 | ||||||
Additional paid-in capital | 11,877 | 11,869 | ||||||
Accumulated other comprehensive income (loss) | (2,220 | ) | (2,614 | ) | ||||
Retained earnings | 1,426 | 1,139 | ||||||
Treasury stock, at cost (150,429,059 and 104,589,309 shares as of September 30, 2023 and December 31, 2022, respectively) | (3,028 | ) | (2,764 | ) | ||||
Total Genworth Financial, Inc.’s stockholders’ equity | 8,056 | 7,631 | ||||||
Noncontrolling interests | 822 | 755 | ||||||
Total equity | 8,878 | 8,386 | ||||||
Total liabilities and equity | $ | 85,466 | $ | 89,714 | ||||
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
(As Adjusted) | (As Adjusted) | |||||||||||||||
Revenues: | ||||||||||||||||
Premiums | $ | 902 | $ | 916 | $ | 1,817 | $ | 1,833 | ||||||||
Net investment income | 785 | 787 | 1,572 | 1,551 | ||||||||||||
Net investment gains (losses) | 39 | 19 | 28 | 61 | ||||||||||||
Policy fees and other income | 166 | 165 | 329 | 335 | ||||||||||||
Total revenues | 1,892 | 1,887 | 3,746 | 3,780 | ||||||||||||
Benefits and expenses: | ||||||||||||||||
Benefits and other changes in policy reserves | 1,175 | 768 | 2,351 | 1,935 | ||||||||||||
Liability remeasurement (gains) losses | 70 | 24 | 55 | (40 | ) | |||||||||||
Changes in fair value of market risk benefits and associated hedges | (19 | ) | 20 | (2 | ) | (21 | ) | |||||||||
Interest credited | 126 | 126 | 252 | 251 | ||||||||||||
Acquisition and operating expenses, net of deferrals | 226 | 579 | 466 | 815 | ||||||||||||
Amortization of deferred acquisition costs and intangibles | 64 | 84 | 136 | 172 | ||||||||||||
Interest expense | 29 | 26 | 58 | 52 | ||||||||||||
Total benefits and expenses | 1,671 | 1,627 | 3,316 | 3,164 | ||||||||||||
Income from continuing operations before income taxes | 221 | 260 | 430 | 616 | ||||||||||||
Provision for income taxes | 55 | 62 | 110 | 146 | ||||||||||||
Income from continuing operations | 166 | 198 | 320 | 470 | ||||||||||||
Income (loss) from discontinued operations, net of taxes | 2 | (1 | ) | 2 | (3 | ) | ||||||||||
Net income | 168 | 197 | 322 | 467 | ||||||||||||
Less: net income from continuing operations attributable to noncontrolling interests | 31 | 38 | 63 | 68 | ||||||||||||
Less: net income from discontinued operations attributable to noncontrolling interests | — | — | — | — | ||||||||||||
Net income available to Genworth Financial, Inc.’s common stockholders | $ | 137 | $ | 159 | $ | 259 | $ | 399 | ||||||||
Net income available to Genworth Financial, Inc.’s common stockholders: | ||||||||||||||||
Income from continuing operations available to Genworth Financial, Inc.’s common stockholders | $ | 135 | $ | 160 | $ | 257 | $ | 402 | ||||||||
Income (loss) from discontinued operations available to Genworth Financial, Inc.’s common stockholders | 2 | (1 | ) | 2 | (3 | ) | ||||||||||
Net income available to Genworth Financial, Inc.’s common stockholders | $ | 137 | $ | 159 | $ | 259 | $ | 399 | ||||||||
Income from continuing operations available to Genworth Financial, Inc.’s common stockholders per share: | ||||||||||||||||
Basic | $ | 0.28 | $ | 0.32 | $ | 0.53 | $ | 0.79 | ||||||||
Diluted | $ | 0.28 | $ | 0.31 | $ | 0.53 | $ | 0.78 | ||||||||
Net income available to Genworth Financial, Inc.’s common stockholders per share: | ||||||||||||||||
Basic | $ | 0.29 | $ | 0.31 | $ | 0.54 | $ | 0.79 | ||||||||
Diluted | $ | 0.29 | $ | 0.31 | $ | 0.53 | $ | 0.77 | ||||||||
Weighted-average common shares outstanding: | ||||||||||||||||
Basic | 473.2 | 508.9 | 482.7 | 508.6 | ||||||||||||
Diluted | 478.1 | 514.1 | 489.1 | 515.7 | ||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
(As Adjusted) | (As Adjusted) | |||||||||||||||
Revenues: | ||||||||||||||||
Premiums | $ | 915 | $ | 929 | $ | 2,732 | $ | 2,762 | ||||||||
Net investment income | 801 | 808 | 2,373 | 2,359 | ||||||||||||
Net investment gains (losses) | (43 | ) | (58 | ) | (15 | ) | 3 | |||||||||
Policy fees and other income | 158 | 169 | 487 | 504 | ||||||||||||
Total revenues | 1,831 | 1,848 | 5,577 | 5,628 | ||||||||||||
Benefits and expenses: | ||||||||||||||||
Benefits and other changes in policy reserves | 1,199 | 1,159 | 3,550 | 3,094 | ||||||||||||
Liability remeasurement (gains) losses | 116 | 17 | 171 | (23 | ) | |||||||||||
Changes in fair value of market risk benefits and associated hedges | (24 | ) | (27 | ) | (26 | ) | (48 | ) | ||||||||
Interest credited | 127 | 128 | 379 | 379 | ||||||||||||
Acquisition and operating expenses, net of deferrals | 228 | 245 | 694 | 1,060 | ||||||||||||
Amortization of deferred acquisition costs and intangibles | 65 | 80 | 201 | 252 | ||||||||||||
Interest expense | 30 | 26 | 88 | 78 | ||||||||||||
Total benefits and expenses | 1,741 | 1,628 | 5,057 | 4,792 | ||||||||||||
Income from continuing operations before income taxes | 90 | 220 | 520 | 836 | ||||||||||||
Provision for income taxes | 30 | 54 | 140 | 200 | ||||||||||||
Income from continuing operations | 60 | 166 | 380 | 636 | ||||||||||||
Income from discontinued operations, net of taxes | — | 5 | 2 | 2 | ||||||||||||
Net income | 60 | 171 | 382 | 638 | ||||||||||||
Less: net income from continuing operations attributable to noncontrolling interests | 31 | 35 | 94 | 103 | ||||||||||||
Less: net income from discontinued operations attributable to noncontrolling interests | — | — | — | — | ||||||||||||
Net income available to Genworth Financial, Inc.’s common stockholders | $ | 29 | $ | 136 | $ | 288 | $ | 535 | ||||||||
Net income available to Genworth Financial, Inc.’s common stockholders: | ||||||||||||||||
Income from continuing operations available to Genworth Financial, Inc.’s common stockholders | $ | 29 | $ | 131 | $ | 286 | $ | 533 | ||||||||
Income from discontinued operations available to Genworth Financial, Inc.’s common stockholders | — | 5 | 2 | 2 | ||||||||||||
Net income available to Genworth Financial, Inc.’s common stockholders | $ | 29 | $ | 136 | $ | 288 | $ | 535 | ||||||||
Income from continuing operations available to Genworth Financial, Inc.’s common stockholders per share: | ||||||||||||||||
Basic | $ | 0.06 | $ | 0.26 | $ | 0.60 | $ | 1.05 | ||||||||
Diluted | $ | 0.06 | $ | 0.26 | $ | 0.59 | $ | 1.04 | ||||||||
Net income available to Genworth Financial, Inc.’s common stockholders per share: | ||||||||||||||||
Basic | $ | 0.06 | $ | 0.27 | $ | 0.61 | $ | 1.05 | ||||||||
Diluted | $ | 0.06 | $ | 0.27 | $ | 0.60 | $ | 1.04 | ||||||||
Weighted-average common shares outstanding: | ||||||||||||||||
Basic | 460.5 | 503.8 | 475.3 | 507.0 | ||||||||||||
Diluted | 466.0 | 509.3 | 481.4 | 513.6 | ||||||||||||
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
(As adjusted) | (As adjusted) | |||||||||||||||
Net income | $ | 168 | $ | 197 | $ | 322 | $ | 467 | ||||||||
Other comprehensive income (loss), net of taxes: | ||||||||||||||||
Net unrealized gains (losses) on securities without an allowance for credit losses | (567 | ) | (3,697 | ) | 358 | (7,664 | ) | |||||||||
Net unrealized gains (losses) on securities with an allowance for credit losses | 6 | — | — | — | ||||||||||||
Derivatives qualifying as hedges | (120 | ) | (344 | ) | (46 | ) | (580 | ) | ||||||||
Change in discount rate used to measure future policy benefits | 664 | 5,280 | (561 | ) | 10,751 | |||||||||||
Change in instrument-specific credit risk of market risk benefits | — | 1 | 1 | 3 | ||||||||||||
Foreign currency translation and other adjustments | 4 | (7 | ) | 8 | (12 | ) | ||||||||||
Total other comprehensive income (loss) | (13 | ) | 1,233 | (240 | ) | 2,498 | ||||||||||
Total comprehensive income | 155 | 1,430 | 82 | 2,965 | ||||||||||||
Less: comprehensive income (loss) attributable to noncontrolling interests | 26 | 10 | 70 | (1 | ) | |||||||||||
Total comprehensive income available to Genworth Financial, Inc.’s common stockholders | $ | 129 | $ | 1,420 | $ | 12 | $ | 2,966 | ||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
(As adjusted) | (As adjusted) | |||||||||||||||
Net income | $ | 60 | $ | 171 | $ | 382 | $ | 638 | ||||||||
Other comprehensive income (loss), net of taxes: | ||||||||||||||||
Net unrealized gains (losses) on securities without an allowance for credit losses | (1,732 | ) | (2,517 | ) | (1,374 | ) | (10,181 | ) | ||||||||
Net unrealized gains (losses) on securities with an allowance for credit losses | — | — | — | — | ||||||||||||
Derivatives qualifying as hedges | (427 | ) | (135 | ) | (473 | ) | (715 | ) | ||||||||
Change in discount rate used to measure future policy benefits | 2,790 | 3,282 | 2,229 | 14,033 | ||||||||||||
Change in instrument-specific credit risk of market risk benefits | 3 | 1 | 4 | 4 | ||||||||||||
Foreign currency translation and other adjustments | (3 | ) | — | 5 | (12 | ) | ||||||||||
Total other comprehensive income (loss) | 631 | 631 | 391 | 3,129 | ||||||||||||
Total comprehensive income | 691 | 802 | 773 | 3,767 | ||||||||||||
Less: comprehensive income attributable to noncontrolling interests | 21 | 10 | 91 | 9 | ||||||||||||
Total comprehensive income available to Genworth Financial, Inc.’s common stockholders | $ | 670 | $ | 792 | $ | 682 | $ | 3,758 | ||||||||
Three months ended June 30, 2023 | ||||||||||||||||||||||||||||||||
Common stock | Additional paid-in capital | Accumulated other comprehensive income (loss) | Retained earnings | Treasury stock, at cost | Total Genworth Financial, Inc.’s stockholders’ equity | Noncontrolling interests | Total equity | |||||||||||||||||||||||||
Balances as of March 31, 2023 | $ | 1 | $ | 11,863 | $ | (2,853 | ) | $ | 1,261 | $ | (2,833 | ) | $ | 7,439 | $ | 793 | $ | 8,232 | ||||||||||||||
Repurchase of subsidiary shares | — | — | — | — | — | — | (8 | ) | (8 | ) | ||||||||||||||||||||||
Comprehensive income (loss): | ||||||||||||||||||||||||||||||||
Net income | — | — | — | 137 | — | 137 | 31 | 168 | ||||||||||||||||||||||||
Other comprehensive loss, net of taxes | — | — | (8 | ) | — | — | (8 | ) | (5 | ) | (13 | ) | ||||||||||||||||||||
Total comprehensive income | 129 | 26 | 155 | |||||||||||||||||||||||||||||
Treasury stock acquired in connection with share repurchases | — | — | — | — | (114 | ) | (114 | ) | — | (114 | ) | |||||||||||||||||||||
Dividends to noncontrolling interests | — | — | — | — | — | — | (5 | ) | (5 | ) | ||||||||||||||||||||||
Stock-based compensation expense and exercises and other | — | 6 | — | — | — | 6 | 1 | 7 | ||||||||||||||||||||||||
Balances as of June 30, 2023 | $ | 1 | $ | 11,869 | $ | (2,861 | ) | $ | 1,398 | $ | (2,947 | ) | $ | 7,460 | $ | 807 | $ | 8,267 | ||||||||||||||
Three months ended June 30, 2022 | ||||||||||||||||||||||||||||||||
Common stock | Additional paid-in capital | Accumulated other comprehensive income (loss) | Retained earnings | Treasury stock, at cost | Total Genworth Financial, Inc.’s stockholders’ equity | Noncontrolling interests | Total equity | |||||||||||||||||||||||||
Balances as of March 31, 2022 (as adjusted) | $ | 1 | $ | 11,857 | $ | (4,549 | ) | $ | 465 | $ | (2,700 | ) | $ | 5,074 | $ | 745 | $ | 5,819 | ||||||||||||||
Comprehensive income (loss): | ||||||||||||||||||||||||||||||||
Net income | — | — | — | 159 | — | 159 | 38 | 197 | ||||||||||||||||||||||||
Other comprehensive income (loss), net of taxes | — | — | 1,261 | — | — | 1,261 | (28 | ) | 1,233 | |||||||||||||||||||||||
Total comprehensive income | 1,420 | 10 | 1,430 | |||||||||||||||||||||||||||||
Treasury stock acquired in connection with share repurchases | — | — | — | — | (15 | ) | (15 | ) | — | (15 | ) | |||||||||||||||||||||
Dividends to noncontrolling interests | — | — | — | — | — | — | (4 | ) | (4 | ) | ||||||||||||||||||||||
Stock-based compensation expense and exercises and other | — | 2 | — | — | — | 2 | — | 2 | ||||||||||||||||||||||||
Balances as of June 30, 2022 (as adjusted) | $ | 1 | $ | 11,859 | $ | (3,288 | ) | $ | 624 | $ | (2,715 | ) | $ | 6,481 | $ | 751 | $ | 7,232 | ||||||||||||||
Three months ended September 30, 2023 | ||||||||||||||||||||||||||||||||
Common stock | Additional paid-in capital | Accumulated other comprehensive income (loss) | Retained earnings | Treasury stock, at cost | Total Genworth Financial, Inc.’s stockholders’ equity | Noncontrolling interests | Total equity | |||||||||||||||||||||||||
Balances as of June 30, 2023 | $ | 1 | $ | 11,869 | $ | (2,861 | ) | $ | 1,398 | $ | (2,947 | ) | $ | 7,460 | $ | 807 | $ | 8,267 | ||||||||||||||
Repurchase of subsidiary shares | — | — | — | — | — | — | (1 | ) | (1 | ) | ||||||||||||||||||||||
Comprehensive income (loss): | ||||||||||||||||||||||||||||||||
Net income | — | — | — | 29 | — | 29 | 31 | 60 | ||||||||||||||||||||||||
Other comprehensive income (loss), net of taxes | — | — | 641 | — | — | 641 | (10 | ) | 631 | |||||||||||||||||||||||
Total comprehensive income | 670 | 21 | 691 | |||||||||||||||||||||||||||||
Treasury stock acquired in connection with share repurchases | — | — | — | — | (81 | ) | (81 | ) | — | (81 | ) | |||||||||||||||||||||
Dividends to noncontrolling interests | — | — | — | — | — | — | (5 | ) | (5 | ) | ||||||||||||||||||||||
Stock-based compensation expense and exercises and other | — | 8 | — | (1 | ) | — | 7 | — | 7 | |||||||||||||||||||||||
Balances as of September 30, 2023 | $ | 1 | $ | 11,877 | $ | (2,220 | ) | $ | 1,426 | $ | (3,028 | ) | $ | 8,056 | $ | 822 | $ | 8,878 | ||||||||||||||
Three months ended September 30, 2022 | ||||||||||||||||||||||||||||||||
Common stock | Additional paid-in capital | Accumulated other comprehensive income (loss) | Retained earnings | Treasury stock, at cost | Total Genworth Financial, Inc.’s stockholders’ equity | Noncontrolling interests | Total equity | |||||||||||||||||||||||||
Balances as of June 30, 2022 (as adjusted) | $ | 1 | $ | 11,859 | $ | (3,288 | ) | $ | 624 | $ | (2,715 | ) | $ | 6,481 | $ | 751 | $ | 7,232 | ||||||||||||||
Comprehensive income (loss): | ||||||||||||||||||||||||||||||||
Net income | — | — | — | 136 | — | 136 | 35 | 171 | ||||||||||||||||||||||||
Other comprehensive income (loss), net of taxes | — | — | 656 | — | — | 656 | (25 | ) | 631 | |||||||||||||||||||||||
Total comprehensive income | 792 | 10 | 802 | |||||||||||||||||||||||||||||
Treasury stock acquired in connection with share repurchases | — | — | — | — | (19 | ) | (19 | ) | — | (19 | ) | |||||||||||||||||||||
Dividends to noncontrolling interests | — | — | — | — | — | — | (4 | ) | (4 | ) | ||||||||||||||||||||||
Stock-based compensation expense and exercises and other | — | 6 | — | — | — | 6 | 1 | 7 | ||||||||||||||||||||||||
Balances as of September 30, 2022 (as adjusted) | $ | 1 | $ | 11,865 | $ | (2,632 | ) | $ | 760 | $ | (2,734 | ) | $ | 7,260 | $ | 758 | $ | 8,018 | ||||||||||||||
Six months ended June 30, 2023 | ||||||||||||||||||||||||||||||||
Common stock | Additional paid-in capital | Accumulated other comprehensive income (loss) | Retained earnings | Treasury stock, at cost | Total Genworth Financial, Inc.’s stockholders’ equity | Noncontrolling interests | Total equity | |||||||||||||||||||||||||
Balances as of December 31, 2022 (as adjusted) | $ | 1 | $ | 11,869 | $ | (2,614 | ) | $ | 1,139 | $ | (2,764 | ) | $ | 7,631 | $ | 755 | $ | 8,386 | ||||||||||||||
Repurchase of subsidiary shares | — | — | — | — | — | — | (12 | ) | (12 | ) | ||||||||||||||||||||||
Comprehensive income (loss): | ||||||||||||||||||||||||||||||||
Net income | — | — | — | 259 | — | 259 | 63 | 322 | ||||||||||||||||||||||||
Other comprehensive income (loss), net of taxes | — | — | (247 | ) | — | — | (247 | ) | 7 | (240 | ) | |||||||||||||||||||||
Total comprehensive income | 12 | 70 | 82 | |||||||||||||||||||||||||||||
Treasury stock acquired in connection with share repurchases | — | — | — | — | (183 | ) | (183 | ) | — | (183 | ) | |||||||||||||||||||||
Dividends to noncontrolling interests | — | — | — | — | — | — | (9 | ) | (9 | ) | ||||||||||||||||||||||
Stock-based compensation expense and exercises and other | — | — | — | — | — | — | 3 | 3 | ||||||||||||||||||||||||
Balances as of June 30, 2023 | $ | 1 | $ | 11,869 | $ | (2,861 | ) | $ | 1,398 | $ | (2,947 | ) | $ | 7,460 | $ | 807 | $ | 8,267 | ||||||||||||||
Six months ended June 30, 2022 | ||||||||||||||||||||||||||||||||
Common stock | Additional paid-in capital | Accumulated other comprehensive income (loss) | Retained earnings | Treasury stock, at cost | Total Genworth Financial, Inc.’s stockholders’ equity | Noncontrolling interests | Total equity | |||||||||||||||||||||||||
Balances as of December 31, 2021 (as adjusted) | $ | 1 | $ | 11,858 | $ | (5,855 | ) | $ | 225 | $ | (2,700 | ) | $ | 3,529 | $ | 756 | $ | 4,285 | ||||||||||||||
Comprehensive income (loss): | ||||||||||||||||||||||||||||||||
Net income | — | — | — | 399 | — | 399 | 68 | 467 | ||||||||||||||||||||||||
Other comprehensive income (loss), net of taxes | — | — | 2,567 | — | — | 2,567 | (69 | ) | 2,498 | |||||||||||||||||||||||
Total comprehensive income (loss) | 2,966 | (1 | ) | 2,965 | ||||||||||||||||||||||||||||
Treasury stock acquired in connection with share repurchases | — | — | — | — | (15 | ) | (15 | ) | — | (15 | ) | |||||||||||||||||||||
Dividends to noncontrolling interests | — | — | — | — | — | — | (4 | ) | (4 | ) | ||||||||||||||||||||||
Stock-based compensation expense and exercises and other | — | 1 | — | — | — | 1 | — | 1 | ||||||||||||||||||||||||
Balances as of June 30, 2022 (as adjusted) | $ | 1 | $ | 11,859 | $ | (3,288 | ) | $ | 624 | $ | (2,715 | ) | $ | 6,481 | $ | 751 | $ | 7,232 | ||||||||||||||
Nine months ended September 30, 2023 | ||||||||||||||||||||||||||||||||
Common stock | Additional paid-in capital | Accumulated other comprehensive income (loss) | Retained earnings | Treasury stock, at cost | Total Genworth Financial, Inc.’s stockholders’ equity | Noncontrolling interests | Total equity | |||||||||||||||||||||||||
Balances as of December 31, 2022 (as adjusted) | $ | 1 | $ | 11,869 | $ | (2,614 | ) | $ | 1,139 | $ | (2,764 | ) | $ | 7,631 | $ | 755 | $ | 8,386 | ||||||||||||||
Repurchase of subsidiary shares | — | — | — | — | — | — | (13 | ) | (13 | ) | ||||||||||||||||||||||
Comprehensive income (loss): | ||||||||||||||||||||||||||||||||
Net income | — | — | — | 288 | — | 288 | 94 | 382 | ||||||||||||||||||||||||
Other comprehensive income (loss), net of taxes | — | — | 394 | — | — | 394 | (3 | ) | 391 | |||||||||||||||||||||||
Total comprehensive income | 682 | 91 | 773 | |||||||||||||||||||||||||||||
Treasury stock acquired in connection with share repurchases | — | — | — | — | (264 | ) | (264 | ) | — | (264 | ) | |||||||||||||||||||||
Dividends to noncontrolling interests | — | — | — | — | — | — | (14 | ) | (14 | ) | ||||||||||||||||||||||
Stock-based compensation expense and exercises and other | — | 8 | — | (1 | ) | — | 7 | 3 | 10 | |||||||||||||||||||||||
Balances as of September 30, 2023 | $ | 1 | $ | 11,877 | $ | (2,220 | ) | $ | 1,426 | $ | (3,028 | ) | $ | 8,056 | $ | 822 | $ | 8,878 | ||||||||||||||
Nine months ended September 30, 2022 | ||||||||||||||||||||||||||||||||
Common stock | Additional paid-in capital | Accumulated other comprehensive income (loss) | Retained earnings | Treasury stock, at cost | Total Genworth Financial, Inc.’s stockholders’ equity | Noncontrolling interests | Total equity | |||||||||||||||||||||||||
Balances as of December 31, 2021 (as adjusted) | $ | 1 | $ | 11,858 | $ | (5,855 | ) | $ | 225 | $ | (2,700 | ) | $ | 3,529 | $ | 756 | $ | 4,285 | ||||||||||||||
Comprehensive income (loss): | ||||||||||||||||||||||||||||||||
Net income | — | — | — | 535 | — | 535 | 103 | 638 | ||||||||||||||||||||||||
Other comprehensive income (loss), net of taxes | — | — | 3,223 | — | — | 3,223 | (94 | ) | 3,129 | |||||||||||||||||||||||
Total comprehensive income | 3,758 | 9 | 3,767 | |||||||||||||||||||||||||||||
Treasury stock acquired in connection with share repurchases | — | — | — | — | (34 | ) | (34 | ) | — | (34 | ) | |||||||||||||||||||||
Dividends to noncontrolling interests | — | — | — | — | — | — | (8 | ) | (8 | ) | ||||||||||||||||||||||
Stock-based compensation expense and exercises and other | — | 7 | — | — | — | 7 | 1 | 8 | ||||||||||||||||||||||||
Balances as of September 30, 2022 (as adjusted) | $ | 1 | $ | 11,865 | $ | (2,632 | ) | $ | 760 | $ | (2,734 | ) | $ | 7,260 | $ | 758 | $ | 8,018 | ||||||||||||||
Six months ended June 30, | ||||||||
2023 | 2022 | |||||||
(As adjusted) | ||||||||
Cash flows from (used by) operating activities: | ||||||||
Net income | $ | 322 | $ | 467 | ||||
Less (income) loss from discontinued operations, net of taxes | (2 | ) | 3 | |||||
Adjustments to reconcile net income to net cash from operating activities: | ||||||||
Amortization of fixed maturity securities discounts and premiums | (58 | ) | (84 | ) | ||||
Net investment (gains) losses | (28 | ) | (61 | ) | ||||
Changes in fair value of market risk benefits and associated hedges | (2 | ) | (21 | ) | ||||
Charges assessed to policyholders | (291 | ) | (289 | ) | ||||
Acquisition costs deferred | (4 | ) | (7 | ) | ||||
Amortization of deferred acquisition costs and intangibles | 136 | 172 | ||||||
Deferred income taxes | 107 | 143 | ||||||
Derivative instruments, limited partnerships and other | (222 | ) | (163 | ) | ||||
Stock-based compensation expense | 25 | 20 | ||||||
Change in certain assets and liabilities: | ||||||||
Accrued investment income and other assets | (66 | ) | (71 | ) | ||||
Insurance reserves | 525 | 641 | ||||||
Other liabilities, policy and contract claims and other policy-related balances | (165 | ) | (382 | ) | ||||
Cash used by operating activities—discontinued operations | (2 | ) | (31 | ) | ||||
Net cash from operating activities | 275 | 337 | ||||||
Cash flows from (used by) investing activities: | ||||||||
Proceeds from maturities and repayments of investments: | ||||||||
Fixed maturity securities | 1,144 | 1,495 | ||||||
Commercial mortgage loans | 269 | 314 | ||||||
Limited partnerships and other invested assets | 67 | 99 | ||||||
Proceeds from sales of investments: | ||||||||
Fixed maturity and equity securities | 1,289 | 1,302 | ||||||
Purchases and originations of investments: | ||||||||
Fixed maturity and equity securities | (1,443 | ) | (1,800 | ) | ||||
Commercial mortgage loans | (113 | ) | (568 | ) | ||||
Limited partnerships and other invested assets | (301 | ) | (297 | ) | ||||
Short-term investments, net | (7 | ) | (24 | ) | ||||
Policy loans, net | 32 | 14 | ||||||
Other | (20 | ) | — | |||||
Net cash from investing activities | 917 | 535 | ||||||
Cash flows from (used by) financing activities: | ||||||||
Deposits to universal life and investment contracts | 303 | 314 | ||||||
Withdrawals from universal life and investment contracts | (893 | ) | (779 | ) | ||||
Repayment and repurchase of long-term debt | (11 | ) | (130 | ) | ||||
Repurchase of subsidiary shares | (12 | ) | — | |||||
Treasury stock acquired in connection with share repurchases | (181 | ) | (15 | ) | ||||
Dividends paid to noncontrolling interests | (9 | ) | (4 | ) | ||||
Other, net | (15 | ) | (105 | ) | ||||
Net cash used by financing activities | (818 | ) | (719 | ) | ||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | — | — | ||||||
Net change in cash, cash equivalents and restricted cash | 374 | 153 | ||||||
Cash, cash equivalents and restricted cash at beginning of period | 1,799 | 1,571 | ||||||
Cash, cash equivalents and restricted cash at end of period | 2,173 | 1,724 | ||||||
Less cash, cash equivalents and restricted cash of discontinued operations at end of period | — | — | ||||||
Cash, cash equivalents and restricted cash of continuing operations at end of period | $ | 2,173 | $ | 1,724 | ||||
Nine months ended September 30, | ||||||||
2023 | 2022 | |||||||
(As adjusted) | ||||||||
Cash flows from (used by) operating activities: | ||||||||
Net income | $ | 382 | $ | 638 | ||||
Less income from discontinued operations, net of taxes | (2 | ) | (2 | ) | ||||
Adjustments to reconcile net income to net cash from operating activities: | ||||||||
Amortization of fixed maturity securities discounts and premiums | (84 | ) | (127 | ) | ||||
Net investment (gains) losses | 15 | (3 | ) | |||||
Changes in fair value of market risk benefits and associated hedges | (26 | ) | (48 | ) | ||||
Charges assessed to policyholders | (430 | ) | (438 | ) | ||||
Acquisition costs deferred | (6 | ) | (10 | ) | ||||
Amortization of deferred acquisition costs and intangibles | 201 | 252 | ||||||
Deferred income taxes | 135 | 200 | ||||||
Derivative instruments, limited partnerships and other | (378 | ) | (250 | ) | ||||
Stock-based compensation expense | 37 | 29 | ||||||
Change in certain assets and liabilities: | ||||||||
Accrued investment income and other assets | (124 | ) | (105 | ) | ||||
Insurance reserves | 903 | 995 | ||||||
Current tax liabilities | (5 | ) | (4 | ) | ||||
Other liabilities, policy and contract claims and other policy-related balances | (166 | ) | (451 | ) | ||||
Cash used by operating activities—discontinued operations | (2 | ) | (31 | ) | ||||
Net cash from operating activities | 450 | 645 | ||||||
Cash flows from (used by) investing activities: | ||||||||
Proceeds from maturities and repayments of investments: | ||||||||
Fixed maturity securities | 1,676 | 2,154 | ||||||
Commercial mortgage loans | 386 | 514 | ||||||
Limited partnerships and other invested assets | 102 | 146 | ||||||
Proceeds from sales of investments: | ||||||||
Fixed maturity and equity securities | 1,533 | 2,061 | ||||||
Purchases and originations of investments: | ||||||||
Fixed maturity and equity securities | (2,187 | ) | (3,222 | ) | ||||
Commercial mortgage loans | (178 | ) | (765 | ) | ||||
Limited partnerships and other invested assets | (432 | ) | (491 | ) | ||||
Short-term investments, net | (15 | ) | 24 | |||||
Policy loans, net | 66 | 31 | ||||||
Other | (38 | ) | — | |||||
Net cash from investing activities | 913 | 452 | ||||||
Cash flows from (used by) financing activities: | ||||||||
Deposits to universal life and investment contracts | 437 | 466 | ||||||
Withdrawals from universal life and investment contracts | (1,308 | ) | (1,190 | ) | ||||
Repayment and repurchase of long-term debt | (11 | ) | (284 | ) | ||||
Repurchase of subsidiary shares | (13 | ) | — | |||||
Treasury stock acquired in connection with share repurchases | (261 | ) | (34 | ) | ||||
Dividends paid to noncontrolling interests | (14 | ) | (8 | ) | ||||
Other, net | — | (57 | ) | |||||
Net cash used by financing activities | (1,170 | ) | (1,107 | ) | ||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 1 | — | ||||||
Net change in cash, cash equivalents and restricted cash | 194 | (10 | ) | |||||
Cash, cash equivalents and restricted cash at beginning of period | 1,799 | 1,571 | ||||||
Cash, cash equivalents and restricted cash at end of period | 1,993 | 1,561 | ||||||
Less cash, cash equivalents and restricted cash of discontinued operations at end of period | — | — | ||||||
Cash, cash equivalents and restricted cash of continuing operations at end of period | $ | 1,993 | $ | 1,561 | ||||
December 31, 2022 (as adjusted) | January 1, 2021 (as adjusted) | |||||||||||||||||||||||
(Amounts in millions) | Previously reported | Correction impacts | As corrected | Previously reported | Correction impacts | As corrected | ||||||||||||||||||
Assets | ||||||||||||||||||||||||
Deferred tax asset | $ | 1,968 | $ | 15 | $ | 1,983 | $ | 3,765 | $ | 11 | $ | 3,776 | ||||||||||||
Total assets | 89,699 | 15 | 89,714 | 122,335 | 11 | 122,346 | ||||||||||||||||||
Liabilities and equity | ||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||
Future policy benefits | 55,349 | 58 | 55,407 | 84,736 | 50 | 84,786 | ||||||||||||||||||
Other liabilities | 1,675 | 12 | 1,687 | 1,618 | — | 1,618 | ||||||||||||||||||
Total liabilities | 81,258 | 70 | 81,328 | 120,219 | 50 | 120,269 | ||||||||||||||||||
Equity: | ||||||||||||||||||||||||
Accumulated other comprehensive income (loss) | (2,617 | ) | 3 | (2,614 | ) | (7,126 | ) | 18 | (7,108 | ) | ||||||||||||||
Retained earnings | 1,197 | (58 | ) | 1,139 | (569 | ) | (57 | ) | (626 | ) | ||||||||||||||
Total Genworth Financial, Inc.’s stockholders’ equity | 7,686 | (55 | ) | 7,631 | 1,614 | (39 | ) | 1,575 | ||||||||||||||||
Total equity | 8,441 | (55 | ) | 8,386 | 2,116 | (39 | ) | 2,077 | ||||||||||||||||
Total liabilities and equity | 89,699 | 15 | 89,714 | 122,335 | 11 | 122,346 |
2023 (as adjusted) | 2022 (as adjusted) | |||||||||||||||||||||||
(Amounts in millions, except per share amounts) | Previously reported | Correction impacts | As corrected | Previously reported | Correction impacts | As corrected | ||||||||||||||||||
Benefits and other changes in policy reserves | $ | 1,172 | $ | 4 | $ | 1,176 | $ | 1,165 | $ | 2 | $ | 1,167 | ||||||||||||
Liability remeasurement (gains) losses | 22 | (37 | ) | (15 | ) | (41 | ) | (23 | ) | (64 | ) | |||||||||||||
Acquisition and operating expenses, net of deferrals | 283 | (43 | ) | 240 | 280 | (44 | ) | 236 | ||||||||||||||||
Total benefits and expenses | 1,721 | (76 | ) | 1,645 | 1,602 | (65 | ) | 1,537 | ||||||||||||||||
Income from continuing operations before income taxes | 133 | 76 | 209 | 291 | 65 | 356 | ||||||||||||||||||
Provision for income taxes | 39 | 16 | 55 | 68 | 16 | 84 | ||||||||||||||||||
Income from continuing operations | 94 | 60 | 154 | 223 | 49 | 272 | ||||||||||||||||||
Net income | 94 | 60 | 154 | 221 | 49 | 270 | ||||||||||||||||||
Net income available to Genworth Financial, Inc.’s common stockholders | 62 | 60 | 122 | 191 | 49 | 240 | ||||||||||||||||||
Income from continuing operations available to Genworth Financial, Inc.’s common stockholders per share: | ||||||||||||||||||||||||
Basic | 0.13 | 0.12 | 0.25 | 0.38 | 0.10 | 0.48 | ||||||||||||||||||
Diluted | 0.12 | 0.12 | 0.24 | 0.37 | 0.10 | 0.47 | ||||||||||||||||||
Net income available to Genworth Financial, Inc.’s common stockholders per share: | ||||||||||||||||||||||||
Basic | 0.13 | 0.12 | 0.25 | 0.38 | 0.09 | 0.47 | ||||||||||||||||||
Diluted | 0.12 | 0.12 | 0.24 | 0.37 | 0.09 | 0.46 |
Key Area Impacted | Change to Accounting Policy | Policy Elections and Other Significant Matters | ||
DAC and balances amortized on a basis consistent with DAC, including intangible assets and cost of reinsurance | DAC associated with long-duration insurance contracts is grouped into cohorts consistent with groupings used to estimate the related liability for future policy benefits and is amortized on a constant level basis over the expected contract term, which approximates straight-line. Assumptions used to amortize DAC are consistent with the assumptions used to estimate the liability for future policy benefits. Revised assumptions are recognized prospectively over the remaining term of the related contract. DAC and balances amortized on a basis consistent with DAC are no longer subject to impairment, shadow adjustments or recoverability testing; however, present value of future profits (“PVFP”) is still assessed for recoverability in connection with premium deficiency testing. | The constant level basis we use to amortize DAC by product is as follows: • long-term care • life • fixed and variable We apply the amortization rate at the beginning of the current reporting period, which reflects assumption updates, if applicable, and actual experience through the end of the current reporting period. We have elected to amortize intangible assets associated with investment contracts, such as PVFP, in a manner consistent with DAC. Cost of reinsurance is deferred and amortized in a manner consistent with DAC over the terms of the related reinsurance treaties. |
Key Area Impacted | Change to Accounting Policy | Policy Elections and Other Significant Matters | ||
MRBs, which include contracts or contract features that protect the policyholder’s account balance and expose the insurer to other-than-nominal capital market risk, such as guaranteed minimum death benefits (“GMDBs”), guaranteed minimum withdrawal benefits (“GMWBs”) and guaranteed payout annuity floor benefits (“GPAFs”) | MRBs are measured at fair value with changes related to instrument-specific credit risk recorded as a separate component in accumulated other comprehensive income (loss) and remaining changes recorded in net income (loss). | For additional details, see notes 7 and 13. | ||
Liability for future policy | For the purpose of calculating the net premium ratio used to measure the liability for future policy benefits, long-duration insurance contracts are grouped into annual cohorts on the basis of original contract issue date. For acquired contracts, the acquisition date is considered the original contract issue date. The net premium ratio for long-duration traditional and | Traditional and limited-payment long-duration insurance contracts are generally grouped into annual calendar-year cohorts based on the contract issue date, product type and company. Limited-payment contracts are grouped into cohorts separately from other traditional products and riders are combined with the associated base policies. Certain products may also be grouped by acquisition date for acquired contracts and reinsurance treaty effective date for reinsurance recoverables. |
Key Area Impacted | Change to Accounting Policy | Policy Elections and Other Significant Matters | ||
Liability for future policy | All cash flow assumptions used to estimate the liability for future policy benefits (including health care experience, policyholder persistency or lapses (i.e., the probability that a policy or contract will remain in-force from one period to the next), insured mortality (i.e., life expectancy or longevity), insured morbidity (i.e., frequency and severity of claim, including claim termination rates and benefit utilization rates), and benefit reductions associated with our long-term care insurancein-force rate actions and legal settlements as well as cash payments made to policyholders catch-up adjustment by recalculating the net premium ratio (which is capped at 100%) using actual historical and updated future cash flow assumptions. The liability for future policy benefits is recalculated using the revised net premium ratio andlocked-in discount rate as of the beginning of the current reporting period and compared to the carrying amount as of the beginning of the current reporting period using the previous net premium ratio andlocked-in discount rate, with any difference recorded as a remeasurement gain (loss).Cash flow assumptions no longer reflect a provision for adverse deviation, and the premium deficiency test and shadow adjustments are eliminated. | We calculate a single liability for future policy benefits and therefore, all cash flows, including benefit payments (such as claims in course of settlement and incurred claims) are aggregated. As a result, our U.S. life insurance companies elected to combine their previously disclosed liability for policy and contract claims, excluding amounts related to certain life and annuity products not subject to the new accounting guidance, within the liability for future policy benefits and present the aggregate liability as one line item in our condensed consolidated balance sheets. Cash flow assumptions will be formally reviewed and updated as necessary based on experience studies in the fourth quarter each year. We elected to update the net premium ratio quarterly for actual versus expected experience; therefore, during interim reporting periods we will replace forecasted cash flow assumptions with actual cash flows with any difference recorded in net income (loss). We made an entity-wide election not to update our expense assumptions and therefore, these assumptions remain locked-in at the time of the Transition Date or if issued after the Transition Date, at the time of contract inception. |
Key Area Impacted | Change to Accounting Policy | Policy Elections and Other Significant Matters | ||
Liability for future policy | The liability for future policy benefits is measured using two different discount rates, a current discount rate and a locked-in discount rate.The current discount rate is used to remeasure the liability for future policy benefits recorded in the condensed consolidated balance sheets and is a current upper-medium grade fixed-income instrument yield, commonly interpreted to be a single-A rated bond rate, with the same duration as the corresponding liability.The locked-in discount rate is used to determine the amounts recorded to net income (loss) and is held constant for the purpose of calculating the net premium ratio and interest accretion. The difference between the liability measured using thelocked-in rate and the liability measured using the current rate is recorded in accumulated other comprehensive income (loss).For policies in-force prior to the Transition Date, thelocked-in discount rate is equal to the discount rate in effect immediately before the Transition Date. For contracts issued on or after the Transition Date, thelocked-in discount rate is asingle-A rated bond rate identified at inception of the contract. | The methodology used to determine the current discount rate assumption maximizes the use of relevant observable inputs and minimizes the use of unobservable inputs. The current discount rate assumption is based on a single-A curve published by a market data service. For cash flows projected beyond the observable curve, we use estimation techniques consistent with Level 3 fair value measurements as defined in 10-K to interpolate from the last observable rate to an estimated ultimate long-term rate.For contracts issued on or after the Transition Date, the locked-in discount rate for each issue-year cohort is determined as a single discount rate, using the weighted-average monthlysingle-A fixed-income forward curves over the current calendar year. |
Key Area Impacted | Change to Accounting Policy | Policy Elections and Other Significant Matters | ||
Liability for future policy | A deferred profit liability is established for limited-payment products at the time of contract issuance for any amount of gross premiums received in excess of net premiums, which is amortized into net income (loss) in proportion to insurance in-force for life insurance products and expected future benefit payments for fixed annuity products. Cash flow assumptions related to the deferred profit liability are consistent with the assumptions used to estimate the related liability for future policy benefits and are updated at the same time.The deferred profit liability is recalculated using updated cash flow assumptions as of the beginning of the current reporting period and compared to the current carrying amount as of the beginning of the current reporting period, with any difference recorded in net income (loss). | |||
Policyholder account | Additional insurance liabilities are established for guarantees or certain product features not classified as MRBs or embedded derivatives. The remeasurement of additional insurance liabilities based on a revised benefit ratio is recorded as liability remeasurement (gains) losses in current period net income (loss). The calculation of additional insurance liabilities also includes investment performance. Therefore, the impacts from net unrealized investment gains and losses on available for-sale investment securities backing additional insurance liabilities are required to be analyzed, as if those unrealized investment gains and losses were realized. These “shadow adjustments” result in the recognition of unrealized gains and losses on additional insurance liabilities in a manner consistent with unrealized gains and losses onavailable-for-sale | Annual premium deficiency testing is still required to be performed for our universal and term universal life insurance products. |
(Amounts in millions) | As originally reported | Effect of adopting LDTI | As adjusted | |||||||||
Assets | ||||||||||||
Deferred acquisition costs | $ | 2,200 | $ | 11 | $ | 2,211 | ||||||
Intangible assets | 241 | (38 | ) | 203 | ||||||||
Reinsurance recoverable | 16,495 | 2,564 | 19,059 | |||||||||
Less: Allowance for credit losses | (60 | ) | (3 | ) | (63 | ) | ||||||
Reinsurance recoverable, net | 16,435 | 2,561 | 18,996 | |||||||||
Other assets | 415 | 73 | 488 | |||||||||
Deferred tax asset | 1,344 | 639 | 1,983 | |||||||||
Market risk benefit assets | — | 26 | 26 | |||||||||
Total assets | 86,442 | 3,272 | 89,714 | |||||||||
Liabilities and equity | ||||||||||||
Liabilities: | ||||||||||||
Future policy benefits | 38,064 | 17,343 | 55,407 | |||||||||
Policyholder account balances | 17,113 | (549 | ) | 16,564 | ||||||||
Market risk benefit liabilities | — | 748 | 748 | |||||||||
Liability for policy and contract claims | 12,234 | (11,551 | ) | 683 | ||||||||
Unearned premiums | 584 | (381 | ) | 203 | ||||||||
Other liabilities | 1,672 | 15 | 1,687 | |||||||||
Total liabilities | 75,703 | 5,625 | 81,328 | |||||||||
Equity: | ||||||||||||
Accumulated other comprehensive income (loss) | (2,220 | ) | (394 | ) | (2,614 | ) | ||||||
Retained earnings | 3,098 | (1,959 | ) | 1,139 | ||||||||
Total Genworth Financial, Inc.’s stockholders’ equity | 9,984 | (2,353 | ) | 7,631 | ||||||||
Total equity | 10,739 | (2,353 | ) | 8,386 | ||||||||
Total liabilities and equity | 86,442 | 3,272 | 89,714 |
(Amounts in millions) | As originally reported | Effect of adopting LDTI | As adjusted | |||||||||
Assets | ||||||||||||
Deferred acquisition costs | $ | 2,200 | $ | 11 | $ | 2,211 | ||||||
Intangible assets | 241 | (38 | ) | 203 | ||||||||
Reinsurance recoverable | 16,495 | 2,564 | 19,059 | |||||||||
Less: Allowance for credit losses | (60 | ) | (3 | ) | (63 | ) | ||||||
Reinsurance recoverable, net | 16,435 | 2,561 | 18,996 | |||||||||
Other assets | 415 | 73 | 488 | |||||||||
Deferred tax asset | 1,344 | 639 | 1,983 | |||||||||
Market risk benefit assets | — | 26 | 26 | |||||||||
Total assets | 86,442 | 3,272 | 89,714 | |||||||||
Liabilities and equity | ||||||||||||
Liabilities: | ||||||||||||
Future policy benefits | 38,064 | 17,343 | 55,407 | |||||||||
Policyholder account balances | 17,113 | (549 | ) | 16,564 | ||||||||
Market risk benefit liabilities | — | 748 | 748 | |||||||||
Liability for policy and contract claims | 12,234 | (11,551 | ) | 683 | ||||||||
Unearned premiums | 584 | (381 | ) | 203 | ||||||||
Other liabilities | 1,672 | 15 | 1,687 | |||||||||
Total liabilities | 75,703 | 5,625 | 81,328 | |||||||||
Equity: | ||||||||||||
Accumulated other comprehensive income (loss) | (2,220 | ) | (394 | ) | (2,614 | ) | ||||||
Retained earnings | 3,098 | (1,959 | ) | 1,139 | ||||||||
Total Genworth Financial, Inc.’s stockholders’ equity | 9,984 | (2,353 | ) | 7,631 | ||||||||
Total equity | 10,739 | (2,353 | ) | 8,386 | ||||||||
Total liabilities and equity | 86,442 | 3,272 | 89,714 |
Three months ended June 30, 2022 | Six months ended June 30, 2022 | |||||||||||||||||||||||
(Amounts in millions, except per share amounts) | As originally reported | Effect of adopting LDTI | As adjusted | As originally reported | Effect of adopting LDTI | As adjusted | ||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Premiums | $ | 927 | $ | (11 | ) | $ | 916 | $ | 1,858 | $ | (25 | ) | $ | 1,833 | ||||||||||
Net investment gains (losses) | 8 | 11 | 19 | 36 | 25 | 61 | ||||||||||||||||||
Policy fees and other income | 159 | 6 | 165 | 328 | 7 | 335 | ||||||||||||||||||
Total revenues | 1,881 | 6 | 1,887 | 3,773 | 7 | 3,780 | ||||||||||||||||||
Benefits and expenses: | ||||||||||||||||||||||||
Benefits and other changes in policy reserves | 764 | 4 | 768 | 1,903 | 32 | 1,935 | ||||||||||||||||||
Liability remeasurement (gains) losses | — | 24 | 24 | — | (40 | ) | (40 | ) | ||||||||||||||||
Changes in fair value of market risk benefits and associated hedges | — | 20 | 20 | — | (21 | ) | (21 | ) | ||||||||||||||||
Interest credited | 125 | 1 | 126 | 250 | 1 | 251 | ||||||||||||||||||
Acquisition and operating expenses, net of deferrals | 589 | (10 | ) | 579 | 860 | (45 | ) | 815 | ||||||||||||||||
Amortization of deferred acquisition costs and intangibles | 84 | — | 84 | 176 | (4 | ) | 172 | |||||||||||||||||
Total benefits and expenses | 1,588 | 39 | 1,627 | 3,241 | (77 | ) | 3,164 | |||||||||||||||||
Income from continuing operations before income taxes | 293 | (33 | ) | 260 | 532 | 84 | 616 | |||||||||||||||||
Provision for income taxes | 73 | (11 | ) | 62 | 131 | 15 | 146 | |||||||||||||||||
Income from continuing operations | 220 | (22 | ) | 198 | 401 | 69 | 470 | |||||||||||||||||
Net income | 219 | (22 | ) | 197 | 398 | 69 | 467 | |||||||||||||||||
Net income available to Genworth Financial, Inc.’s common stockholders | 181 | (22 | ) | 159 | 330 | 69 | 399 | |||||||||||||||||
Income from continuing operations available to Genworth Financial, Inc.’s common stockholders | 182 | (22 | ) | 160 | 333 | 69 | 402 | |||||||||||||||||
Net income available to Genworth Financial, Inc.’s common stockholders | 181 | (22 | ) | 159 | 330 | 69 | 399 | |||||||||||||||||
Income from continuing operations available to Genworth Financial, Inc.’s common stockholders per share: | ||||||||||||||||||||||||
Basic | 0.36 | (0.04 | ) | 0.32 | 0.65 | 0.14 | 0.79 | |||||||||||||||||
Diluted | 0.36 | (0.05 | ) | 0.31 | 0.65 | 0.13 | 0.78 | |||||||||||||||||
Net income available to Genworth Financial, Inc.’s common stockholders per share: | ||||||||||||||||||||||||
Basic | 0.36 | (0.05 | ) | 0.31 | 0.65 | 0.14 | 0.79 | |||||||||||||||||
Diluted | 0.35 | (0.04 | ) | 0.31 | 0.64 | 0.13 | 0.77 |
Three months ended September 30, 2022 | Nine months ended September 30, 2022 | |||||||||||||||||||||||
(Amounts in millions, except per share amounts) | As originally reported | Effect of adopting LDTI | As adjusted | As originally reported | Effect of adopting LDTI | As adjusted | ||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Premiums | $ | 934 | $ | (5 | ) | $ | 929 | $ | 2,792 | $ | (30 | ) | $ | 2,762 | ||||||||||
Net investment gains (losses) | (69 | ) | 11 | (58 | ) | (33 | ) | 36 | 3 | |||||||||||||||
Policy fees and other income | 166 | 3 | 169 | 494 | 10 | 504 | ||||||||||||||||||
Total revenues | 1,839 | 9 | 1,848 | 5,612 | 16 | 5,628 | ||||||||||||||||||
Benefits and expenses: | ||||||||||||||||||||||||
Benefits and other changes in policy reserves | 1,180 | (21 | ) | 1,159 | 3,083 | 11 | 3,094 | |||||||||||||||||
Liability remeasurement (gains) losses | — | 17 | 17 | — | (23 | ) | (23 | ) | ||||||||||||||||
Changes in fair value of market risk benefits and associated hedges | — | (27 | ) | (27 | ) | — | (48 | ) | (48 | ) | ||||||||||||||
Interest credited | 128 | — | 128 | 378 | 1 | 379 | ||||||||||||||||||
Acquisition and operating expenses, net of deferrals | 240 | 5 | 245 | 1,100 | (40 | ) | 1,060 | |||||||||||||||||
Amortization of deferred acquisition costs and intangibles | 79 | 1 | 80 | 255 | (3 | ) | 252 | |||||||||||||||||
Total benefits and expenses | 1,653 | (25 | ) | 1,628 | 4,894 | (102 | ) | 4,792 | ||||||||||||||||
Income from continuing operations before income taxes | 186 | 34 | 220 | 718 | 118 | 836 | ||||||||||||||||||
Provision for income taxes | 52 | 2 | 54 | 183 | 17 | 200 | ||||||||||||||||||
Income from continuing operations | 134 | 32 | 166 | 535 | 101 | 636 | ||||||||||||||||||
Net income | 139 | 32 | 171 | 537 | 101 | 638 | ||||||||||||||||||
Net income available to Genworth Financial, Inc.’s common stockholders | 104 | 32 | 136 | 434 | 101 | 535 | ||||||||||||||||||
Income from continuing operations available to Genworth Financial, Inc.’s common stockholders | 99 | 32 | 131 | 432 | 101 | 533 | ||||||||||||||||||
Net income available to Genworth Financial, Inc.’s common stockholders | 104 | 32 | 136 | 434 | 101 | 535 | ||||||||||||||||||
Income from continuing operations available to Genworth Financial, Inc.’s common stockholders per share: | ||||||||||||||||||||||||
Basic | 0.20 | 0.06 | 0.26 | 0.85 | 0.20 | 1.05 | ||||||||||||||||||
Diluted | 0.19 | 0.07 | 0.26 | 0.84 | 0.20 | 1.04 | ||||||||||||||||||
Net income available to Genworth Financial, Inc.’s common stockholders per share: | ||||||||||||||||||||||||
Basic | 0.21 | 0.06 | 0.27 | 0.86 | 0.19 | 1.05 | ||||||||||||||||||
Diluted | 0.20 | 0.07 | 0.27 | 0.85 | 0.19 | 1.04 |
(Amounts in millions) | As originally reported | Effect of adopting LDTI | As adjusted | As originally reported | Effect of adopting LDTI | As adjusted | ||||||||||||||||||
Cash flows from (used by) operating activities: | ||||||||||||||||||||||||
Net income | $ | 398 | $ | 69 | $ | 467 | $ | 537 | $ | 101 | $ | 638 | ||||||||||||
Adjustments to reconcile net income to net cash from operating activities: | ||||||||||||||||||||||||
Net investment (gains) losses | (36 | ) | (25 | ) | (61 | ) | 33 | (36 | ) | (3 | ) | |||||||||||||
Changes in fair value of market risk benefits and associated hedges | — | (21 | ) | (21 | ) | — | (48 | ) | (48 | ) | ||||||||||||||
Charges assessed to policyholders | (292 | ) | 3 | (289 | ) | (444 | ) | 6 | (438 | ) | ||||||||||||||
Acquisition costs deferred | (1 | ) | (6 | ) | (7 | ) | — | (10 | ) | (10 | ) | |||||||||||||
Amortization of deferred acquisition costs and intangibles | 176 | (4 | ) | 172 | 255 | (3 | ) | 252 | ||||||||||||||||
Deferred income taxes | 128 | 15 | 143 | 183 | 17 | 200 | ||||||||||||||||||
Change in certain assets and liabilities: | ||||||||||||||||||||||||
Accrued investment income and other assets | (70 | ) | (1 | ) | (71 | ) | (104 | ) | (1 | ) | (105 | ) | ||||||||||||
Insurance reserves | 494 | 147 | 641 | 717 | 278 | 995 | ||||||||||||||||||
Other liabilities, policy and contract claims and other policy-related balances | (205 | ) | (177 | ) | (382 | ) | (147 | ) | (304 | ) | (451 | ) | ||||||||||||
Net cash from operating activities | 337 | — | 337 | 645 | — | 645 |
Balances as of December 31, 2020 (as reported) | Effect of adopting LDTI | Balances as of January 1, 2021 (as adjusted) | ||||||||||||||||||||||
(Amounts in millions) | Eliminate shadow adjustments | Changes in measurement of assets and liabilities | Change in discount rate | Recognize MRBs | ||||||||||||||||||||
Assets | ||||||||||||||||||||||||
Total investments | $ | 74,701 | $ | — | $ | — | $ | — | $ | — | $ | 74,701 | ||||||||||||
Cash, cash equivalents and restricted cash | 2,561 | — | — | — | — | 2,561 | ||||||||||||||||||
Accrued investment income | 655 | — | — | — | — | 655 | ||||||||||||||||||
Deferred acquisition costs | 1,487 | 1,322 | — | — | — | 2,809 | ||||||||||||||||||
Intangible assets | 157 | 114 | — | — | — | 271 | ||||||||||||||||||
Reinsurance recoverable | 16,864 | — | 1,214 | 10,149 | (92 | ) | 28,135 | |||||||||||||||||
Less: Allowance for credit losses | (45 | ) | — | — | — | — | (45 | ) | ||||||||||||||||
Reinsurance recoverable, net | 16,819 | — | 1,214 | 10,149 | (92 | ) | 28,090 | |||||||||||||||||
Other assets | 404 | — | (89 | ) | — | 248 | 563 | |||||||||||||||||
Deferred tax asset | 65 | (1,515 | ) | 497 | 4,624 | 105 | 3,776 | |||||||||||||||||
Market risk benefit assets | — | — | — | — | 22 | 22 | ||||||||||||||||||
Separate account assets | 6,081 | — | — | — | — | 6,081 | ||||||||||||||||||
Assets related to discontinued operations | 2,817 | — | — | — | — | 2,817 | ||||||||||||||||||
Total assets | $ | 105,747 | $ | (79 | ) | $ | 1,622 | $ | 14,773 | $ | 283 | $ | 122,346 | |||||||||||
Liabilities and equity | ||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||
Future policy benefits | $ | 42,695 | $ | (4,456 | ) | $ | 14,654 | $ | 31,893 | $ | — | $ | 84,786 | |||||||||||
Policyholder account balances | 21,503 | (1,229 | ) | — | — | (641 | ) | 19,633 | ||||||||||||||||
Market risk benefit liabilities | — | — | — | — | 1,310 | 1,310 | ||||||||||||||||||
Liability for policy and contract claims | 11,486 | — | (10,725 | ) | — | — | 761 | |||||||||||||||||
Unearned premiums | 775 | — | (468 | ) | — | — | 307 | |||||||||||||||||
Other liabilities | 1,614 | — | — | — | 4 | 1,618 | ||||||||||||||||||
Long-term borrowings | 3,403 | — | — | — | — | 3,403 | ||||||||||||||||||
Separate account liabilities | 6,081 | — | — | — | — | 6,081 | ||||||||||||||||||
Liabilities related to discontinued operations | 2,370 | — | — | — | — | 2,370 | ||||||||||||||||||
Total liabilities | 89,927 | (5,685 | ) | 3,461 | 31,893 | 673 | 120,269 | |||||||||||||||||
Commitments and contingencies | ||||||||||||||||||||||||
Equity: | ||||||||||||||||||||||||
Class A common stock | 1 | — | — | — | — | 1 | ||||||||||||||||||
Additional paid-in capital | 12,008 | — | — | — | — | 12,008 | ||||||||||||||||||
Accumulated other comprehensive income (loss) | 4,425 | 5,606 | — | (17,120 | ) | (19 | ) | (7,108 | ) | |||||||||||||||
Retained earnings | 1,584 | — | (1,839 | ) | — | (371 | ) | (626 | ) | |||||||||||||||
Treasury stock, at cost | (2,700 | ) | — | — | — | — | (2,700 | ) | ||||||||||||||||
Total Genworth Financial, Inc.’s stockholders’ equity | 15,318 | 5,606 | (1,839 | ) | (17,120 | ) | (390 | ) | 1,575 | |||||||||||||||
Noncontrolling interests | 502 | — | — | — | — | 502 | ||||||||||||||||||
Total equity | 15,820 | 5,606 | (1,839 | ) | (17,120 | ) | (390 | ) | 2,077 | |||||||||||||||
Total liabilities and equity | $ | 105,747 | $ | (79 | ) | $ | 1,622 | $ | 14,773 | $ | 283 | $ | 122,346 | |||||||||||
Balances as of December 31, 2020 (as reported) | Effect of adopting LDTI | Balances as of January 1, 2021 (as adjusted) | ||||||||||||||||||||||
(Amounts in millions) | Eliminate shadow adjustments | Changes in measurement of assets and liabilities | Change in discount rate | Recognize MRBs | ||||||||||||||||||||
Assets | ||||||||||||||||||||||||
Total investments | $ | 74,701 | $ | — | $ | — | $ | — | $ | — | $ | 74,701 | ||||||||||||
Cash, cash equivalents and restricted cash | 2,561 | — | — | — | — | 2,561 | ||||||||||||||||||
Accrued investment income | 655 | — | — | — | — | 655 | ||||||||||||||||||
Deferred acquisition costs | 1,487 | 1,322 | — | — | — | 2,809 | ||||||||||||||||||
Intangible assets | 157 | 114 | — | — | — | 271 | ||||||||||||||||||
Reinsurance recoverable | 16,864 | — | 1,214 | 10,149 | (92 | ) | 28,135 | |||||||||||||||||
Less: Allowance for credit losses | (45 | ) | — | — | — | — | (45 | ) | ||||||||||||||||
Reinsurance recoverable, net | 16,819 | — | 1,214 | 10,149 | (92 | ) | 28,090 | |||||||||||||||||
Other assets | 404 | — | (89 | ) | — | 248 | 563 | |||||||||||||||||
Deferred tax asset | 65 | (1,515 | ) | 497 | 4,624 | 105 | 3,776 | |||||||||||||||||
Market risk benefit assets | — | — | — | — | 22 | 22 | ||||||||||||||||||
Separate account assets | 6,081 | — | — | — | — | 6,081 | ||||||||||||||||||
Assets related to discontinued operations | 2,817 | — | — | — | — | 2,817 | ||||||||||||||||||
Total assets | $ | 105,747 | $ | (79 | ) | $ | 1,622 | $ | 14,773 | $ | 283 | $ | 122,346 | |||||||||||
Liabilities and equity | ||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||
Future policy benefits | $ | 42,695 | $ | (4,456 | ) | $ | 14,654 | $ | 31,893 | $ | — | $ | 84,786 | |||||||||||
Policyholder account balances | 21,503 | (1,229 | ) | — | — | (641 | ) | 19,633 | ||||||||||||||||
Market risk benefit liabilities | — | — | — | — | 1,310 | 1,310 | ||||||||||||||||||
Liability for policy and contract claims | 11,486 | — | (10,725 | ) | — | — | 761 | |||||||||||||||||
Unearned premiums | 775 | — | (468 | ) | — | — | 307 | |||||||||||||||||
Other liabilities | 1,614 | — | — | — | 4 | 1,618 | ||||||||||||||||||
Long-term borrowings | 3,403 | — | — | — | — | 3,403 | ||||||||||||||||||
Separate account liabilities | 6,081 | — | — | — | — | 6,081 | ||||||||||||||||||
Liabilities related to discontinued operations | 2,370 | — | — | — | — | 2,370 | ||||||||||||||||||
Total liabilities | 89,927 | (5,685 | ) | 3,461 | 31,893 | 673 | 120,269 | |||||||||||||||||
Commitments and contingencies | ||||||||||||||||||||||||
Equity: | ||||||||||||||||||||||||
Class A common stock | 1 | — | — | — | — | 1 | ||||||||||||||||||
Additional paid-in capital | 12,008 | — | — | — | — | 12,008 | ||||||||||||||||||
Accumulated other comprehensive income (loss) | 4,425 | 5,606 | — | (17,120 | ) | (19 | ) | (7,108 | ) | |||||||||||||||
Retained earnings | 1,584 | — | (1,839 | ) | — | (371 | ) | (626 | ) | |||||||||||||||
Treasury stock, at cost | (2,700 | ) | — | — | — | — | (2,700 | ) | ||||||||||||||||
Total Genworth Financial, Inc.’s stockholders’ equity | 15,318 | 5,606 | (1,839 | ) | (17,120 | ) | (390 | ) | 1,575 | |||||||||||||||
Noncontrolling interests | 502 | — | — | — | — | 502 | ||||||||||||||||||
Total equity | 15,820 | 5,606 | (1,839 | ) | (17,120 | ) | (390 | ) | 2,077 | |||||||||||||||
Total liabilities and equity | $ | 105,747 | $ | (79 | ) | $ | 1,622 | $ | 14,773 | $ | 283 | $ | 122,346 | |||||||||||
(Amounts in millions) | Accumulated other comprehensive income (loss) | Retained earnings | Total stockholders’ equity | |||||||||
Deferred acquisition costs | $ | 1,322 | $ | — | $ | 1,322 | ||||||
Intangible assets | 114 | — | 114 | |||||||||
Reinsurance recoverable | 10,149 | 1,201 | 11,350 | |||||||||
Other assets | — | 156 | 156 | |||||||||
Future policy benefits | (27,437 | ) | (3,537 | ) | (30,974 | ) | ||||||
Policyholder account balances | 1,229 | — | 1,229 | |||||||||
Market risk benefits, net | (24 | ) | (623 | ) | (647 | ) | ||||||
Other liabilities | — | (4 | ) | (4 | ) | |||||||
Deferred taxes | 3,114 | 597 | 3,711 | |||||||||
Total | $ | (11,533 | ) | $ | (2,210 | ) | $ | (13,743 | ) | |||
(Amounts in millions) | Long-term care insurance | Life insurance | Fixed annuities | Variable annuities | Total | |||||||||||||||
Balances as of December 31, 2020 | $ | — | $ | 1,316 | $ | 3 | $ | 139 | $ | 1,458 | ||||||||||
Adjustment for removal of related balances in accumulated other comprehensive income (loss) | 1,043 | 185 | 82 | 12 | 1,322 | |||||||||||||||
Adjusted balances as of January 1, 2021 | $ | 1,043 | $ | 1,501 | $ | 85 | $ | 151 | 2,780 | |||||||||||
Enact segment | 29 | |||||||||||||||||||
Total deferred acquisition costs as of January 1, 2021 | $ | 2,809 | ||||||||||||||||||
(Amounts in millions) | Life insurance | Fixed annuities | Variable annuities | Total | ||||||||||||
Balances as of December 31, 2020 | $ | 73 | $ | 7 | $ | 3 | $ | 83 | ||||||||
Adjustment for removal of related balances in accumulated other comprehensive income (loss) | 81 | 33 | — | 114 | ||||||||||||
Adjusted balances as of January 1, 2021 | $ | 154 | $ | 40 | $ | 3 | $ | 197 | ||||||||
(Amounts in millions) | Life insurance | Fixed annuities | Variable annuities | Total | ||||||||||||
Balances as of December 31, 2020 | $ | 73 | $ | 7 | $ | 3 | $ | 83 | ||||||||
Adjustment for removal of related balances in accumulated other comprehensive income (loss) | 81 | 33 | — | 114 | ||||||||||||
Adjusted balances as of January 1, 2021 | $ | 154 | $ | 40 | $ | 3 | $ | 197 | ||||||||
(Amounts in millions) | Long-term care insurance | Life insurance | Fixed annuities | Total | ||||||||||||
Balances as of December 31, 2020 | $ | 28,770 | $ | 2,101 | $ | 11,824 | $ | 42,695 | ||||||||
Reclassify liability for policy and contract claims, unearned premiums and due premiums (1) | 10,918 | 189 | 10 | 11,117 | ||||||||||||
Change in discount rate assumptions | 24,253 | 361 | 7,279 | 31,893 | ||||||||||||
Change in cash flow assumptions (2) | 3,319 | (2 | ) | 264 | 3,581 | |||||||||||
Change in cash flow assumptions, effect of increase (decrease) of the deferred profit liability (2) | (173 | ) | — | 129 | (44 | ) | ||||||||||
Adjustment for removal of related balances in accumulated other comprehensive income (loss) | (3,716 | ) | — | (740 | ) | (4,456 | ) | |||||||||
Adjusted balances as of January 1, 2021 | 63,371 | 2,649 | 18,766 | 84,786 | ||||||||||||
Less: reinsurance recoverable | 11,476 | 834 | 13,699 | 26,009 | ||||||||||||
Adjusted balances as of January 1, 2021, net of reinsurance | $ | 51,895 | $ | 1,815 | $ | 5,067 | $ | 58,777 | ||||||||
(1) | Upon adopting LDTI, we elected to combine our previously disclosed liability for policy and contract claims, unearned premiums and due premiums, excluding amounts related to mortgage insurance and certain life and annuity products not subject to the new accounting guidance, within the liability for future policy benefits and present the aggregate liability as one line item in our condensed consolidated balance sheets. |
(2) | For limited-payment contracts, if the remeasured liability for future policy benefits under LDTI is (less) greater than the carrying value immediately before the Transition Date, the deferred profit liability is increased (decreased) with a corresponding (decrease) increase to the liability for future policy benefits. |
(Amounts in millions) | Fixed indexed annuities | Variable annuities | Total | |||||||||
Balances as of December 31, 2020 | $ | 71 | $ | 570 | $ | 641 | ||||||
Adjustment for the difference between carrying amount and fair value, except for the difference due to instrument-specific credit risk | 39 | 584 | 623 | |||||||||
Adjustment for the cumulative effect of changes in the instrument-specific credit risk since issuance | 5 | 19 | 24 | |||||||||
Total adjustment for the difference between carrying amount and fair value | 44 | 603 | 647 | |||||||||
Adjusted balances as of January 1, 2021 | 115 | 1,173 | 1,288 | |||||||||
Less: reinsurance recoverable | — | 244 | 244 | |||||||||
Adjusted balances as of January 1, 2021, net of reinsurance | $ | 115 | $ | 929 | $ | 1,044 | ||||||
(Amounts in millions) | Fixed indexed annuities | Variable annuities | Total | |||||||||
Balances as of December 31, 2020 | $ | 71 | $ | 570 | $ | 641 | ||||||
Adjustment for the difference between carrying amount and fair value, except for the difference due to instrument-specific credit risk | 39 | 584 | 623 | |||||||||
Adjustment for the cumulative effect of changes in the instrument-specific credit risk since issuance | 5 | 19 | 24 | |||||||||
Total adjustment for the difference between carrying amount and fair value | 44 | 603 | 647 | |||||||||
Adjusted balances as of January 1, 2021 | 115 | 1,173 | 1,288 | |||||||||
Less: reinsurance recoverable | — | 244 | 244 | |||||||||
Adjusted balances as of January 1, 2021, net of reinsurance | $ | 115 | $ | 929 | $ | 1,044 | ||||||
Three months ended June 30, | Six months ended June 30, | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||
(Amounts in millions, except per share amounts) | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||
Weighted-average common shares used in basic earnings (loss) per share calculations | 473.2 | 508.9 | 482.7 | 508.6 | ||||||||||||||||||||||||||||
Weighted-average common shares used in basic earnings per share calculations | 460.5 | 503.8 | 475.3 | 507.0 | ||||||||||||||||||||||||||||
Potentially dilutive securities: | ||||||||||||||||||||||||||||||||
Stock options, restricted stock units and other equity-based awards | 4.9 | 5.2 | 6.4 | 7.1 | 5.5 | 5.5 | 6.1 | 6.6 | ||||||||||||||||||||||||
Weighted-average common shares used in diluted earnings (loss) per share calculations | 478.1 | 514.1 | 489.1 | 515.7 | ||||||||||||||||||||||||||||
Weighted-average common shares used in diluted earnings per share calculations | 466.0 | 509.3 | 481.4 | 513.6 | ||||||||||||||||||||||||||||
Income from continuing operations: | ||||||||||||||||||||||||||||||||
Income from continuing operations | $ | 166 | $ | 198 | $ | 320 | $ | 470 | $ | 60 | $ | 166 | $ | 380 | $ | 636 | ||||||||||||||||
Less: net income from continuing operations attributable to noncontrolling interests | 31 | 38 | 63 | 68 | 31 | 35 | 94 | 103 | ||||||||||||||||||||||||
Income from continuing operations available to Genworth Financial, Inc.’s common stockholders | $ | 135 | $ | 160 | $ | 257 | $ | 402 | $ | 29 | $ | 131 | $ | 286 | $ | 533 | ||||||||||||||||
Basic per share | $ | 0.28 | $ | 0.32 | $ | 0.53 | $ | 0.79 | $ | 0.06 | $ | 0.26 | $ | 0.60 | $ | 1.05 | ||||||||||||||||
Diluted per share | $ | 0.28 | $ | 0.31 | $ | 0.53 | $ | 0.78 | $ | 0.06 | $ | 0.26 | $ | 0.59 | $ | 1.04 | ||||||||||||||||
Income (loss) from discontinued operations: | ||||||||||||||||||||||||||||||||
Income (loss) from discontinued operations, net of taxes | $ | 2 | $ | (1 | ) | $ | 2 | $ | (3 | ) | ||||||||||||||||||||||
Income from discontinued operations: | ||||||||||||||||||||||||||||||||
Income from discontinued operations, net of taxes | $ | — | $ | 5 | $ | 2 | $ | 2 | ||||||||||||||||||||||||
Less: net income from discontinued operations attributable to noncontrolling interests | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Income (loss) from discontinued operations available to Genworth Financial, Inc.’s common stockholders | $ | 2 | $ | (1 | ) | $ | 2 | $ | (3 | ) | ||||||||||||||||||||||
Income from discontinued operations available to Genworth Financial, Inc.’s common stockholders | $ | — | $ | 5 | $ | 2 | $ | 2 | ||||||||||||||||||||||||
Basic per share | $ | 0.01 | $ | — | $ | 0.01 | $ | (0.01 | ) | $ | — | $ | 0.01 | $ | — | $ | — | |||||||||||||||
Diluted per share | $ | 0.01 | $ | — | $ | 0.01 | $ | (0.01 | ) | $ | — | $ | 0.01 | $ | — | $ | — | |||||||||||||||
Net income: | ||||||||||||||||||||||||||||||||
Income from continuing operations | $ | 166 | $ | 198 | $ | 320 | $ | 470 | $ | 60 | $ | 166 | $ | 380 | $ | 636 | ||||||||||||||||
Income (loss) from discontinued operations, net of taxes | 2 | (1 | ) | 2 | (3 | ) | ||||||||||||||||||||||||||
Income from discontinued operations, net of taxes | — | 5 | 2 | 2 | ||||||||||||||||||||||||||||
Net income | 168 | 197 | 322 | 467 | 60 | 171 | 382 | 638 | ||||||||||||||||||||||||
Less: net income attributable to noncontrolling interests | 31 | 38 | 63 | 68 | 31 | 35 | 94 | 103 | ||||||||||||||||||||||||
Net income available to Genworth Financial, Inc.’s common stockholders | $ | 137 | $ | 159 | $ | 259 | $ | 399 | $ | 29 | $ | 136 | $ | 288 | $ | 535 | ||||||||||||||||
Basic per share (1) | $ | 0.29 | $ | 0.31 | $ | 0.54 | $ | 0.79 | $ | 0.06 | $ | 0.27 | $ | 0.61 | $ | 1.05 | ||||||||||||||||
Diluted per share (1) | $ | 0.29 | $ | 0.31 | $ | 0.53 | $ | 0.77 | $ | 0.06 | $ | 0.27 | $ | 0.60 | $ | 1.04 | ||||||||||||||||
(1) |
May not total due to whole number calculation. |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
(Amounts in millions) | 2023 | 2022 | 2023 | 2022 | ||||||||||||
Fixed maturity securities—taxable | $ | 559 | $ | 576 | $ | 1,687 | $ | 1,734 | ||||||||
Fixed maturity securities—non-taxable | 1 | 2 | 3 | 4 | ||||||||||||
Equity securities | 1 | 3 | 6 | 7 | ||||||||||||
Commercial mortgage loans | 76 | 81 | 227 | 240 | ||||||||||||
Policy loans | 58 | 55 | 167 | 156 | ||||||||||||
Limited partnerships | 31 | 38 | 76 | 77 | ||||||||||||
Other invested assets | 69 | 67 | 207 | 196 | ||||||||||||
Cash, cash equivalents, restricted cash and short-term investments | 28 | 7 | 68 | 8 | ||||||||||||
Gross investment income before expenses and fees | 823 | 829 | 2,441 | 2,422 | ||||||||||||
Expenses and fees | (22 | ) | (21 | ) | (68 | ) | (63 | ) | ||||||||
Net investment income | $ | 801 | $ | 808 | $ | 2,373 | $ | 2,359 | ||||||||
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
(Amounts in millions) | 2023 | 2022 | 2023 | 2022 | ||||||||||||
Fixed maturity securities—taxable | $ | 567 | $ | 578 | $ | 1,128 | $ | 1,158 | ||||||||
Fixed maturity securities—non-taxable | 1 | 1 | 2 | 2 | ||||||||||||
Equity securities | 3 | 2 | 5 | 4 | ||||||||||||
Commercial mortgage loans | 75 | 78 | 151 | 159 | ||||||||||||
Policy loans | 54 | 51 | 109 | 101 | ||||||||||||
Limited partnerships | 17 | 32 | 45 | 39 | ||||||||||||
Other invested assets | 70 | 66 | 138 | 129 | ||||||||||||
Cash, cash equivalents, restricted cash and short-term investments | 22 | 1 | 40 | 1 | ||||||||||||
Gross investment income before expenses and fees | 809 | 809 | 1,618 | 1,593 | ||||||||||||
Expenses and fees | (24 | ) | (22 | ) | (46 | ) | (42 | ) | ||||||||
Net investment income | $ | 785 | $ | 787 | $ | 1,572 | $ | 1,551 | ||||||||
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
(Amounts in millions) | 2023 | 2022 | 2023 | 2022 | ||||||||||||
Realized investment gains (losses): | ||||||||||||||||
Available-for-sale fixed maturity securities: | ||||||||||||||||
Realized gains | $ | 18 | $ | 5 | $ | 21 | $ | 15 | ||||||||
Realized losses | (48 | ) | (9 | ) | (67 | ) | (27 | ) | ||||||||
Net realized gains (losses) on available-for-sale fixed maturity securities | (30 | ) | (4 | ) | (46 | ) | (12 | ) | ||||||||
Net realized gains (losses) on equity securities sold | (1 | ) | — | (1 | ) | — | ||||||||||
Net realized gains (losses) on limited partnerships | — | — | — | — | ||||||||||||
Total net realized investment gains (losses) | (31 | ) | (4 | ) | (47 | ) | (12 | ) | ||||||||
Net change in allowance for credit losses on available-for-sale fixed maturity securities | 11 | — | (4 | ) | — | |||||||||||
Write-down of available-for-sale fixed maturity securities (1) | (1 | ) | — | (1 | ) | (2 | ) | |||||||||
Net unrealized gains (losses) on equity securities still held | 21 | (26 | ) | 32 | (32 | ) | ||||||||||
Net unrealized gains (losses) on limited partnerships | 40 | 24 | 40 | 59 | ||||||||||||
Commercial mortgage loans | — | 2 | (2 | ) | 3 | |||||||||||
Derivative instruments (2) | (1 | ) | 18 | 11 | 37 | |||||||||||
Other | — | 5 | (1 | ) | 8 | |||||||||||
Net investment gains (losses) | $ | 39 | $ | 19 | $ | 28 | $ | 61 | ||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
(Amounts in millions) | 2023 | 2022 | 2023 | 2022 | ||||||||||||
Realized investment gains (losses): | ||||||||||||||||
Available-for-sale | ||||||||||||||||
Realized gains | $ | 5 | $ | 11 | $ | 26 | $ | 26 | ||||||||
Realized losses | (16 | ) | (38 | ) | (83 | ) | (65 | ) | ||||||||
Net realized gains (losses) on available-for-sale | (11 | ) | (27 | ) | (57 | ) | (39 | ) | ||||||||
Net realized gains (losses) on equity securities sold | — | — | (1 | ) | — | |||||||||||
Net realized gains (losses) on limited partnerships | — | — | — | — | ||||||||||||
Total net realized investment gains (losses) | (11 | ) | (27 | ) | (58 | ) | (39 | ) | ||||||||
Net change in allowance for credit losses on available-for-sale | (2 | ) | — | (6 | ) | — | ||||||||||
Write-down of available-for-sale (1) | — | — | (1 | ) | (2 | ) | ||||||||||
Net unrealized gains (losses) on equity securities still held | (12 | ) | (14 | ) | 20 | (46 | ) | |||||||||
Net unrealized gains (losses) on limited partnerships | 14 | (24 | ) | 54 | 35 | |||||||||||
Commercial mortgage loans | (1 | ) | — | (3 | ) | 3 | ||||||||||
Derivative instruments (2) | (28 | ) | 7 | (17 | ) | 44 | ||||||||||
Other | (3 | ) | — | (4 | ) | 8 | ||||||||||
Net investment gains (losses) | $ | (43 | ) | $ | (58 | ) | $ | (15 | ) | $ | 3 | |||||
(1) | Represents write-down of securities deemed uncollectible or that we intend to sell or will be required to sell prior to recovery of the amortized cost basis. |
(2) | See note 6 for additional information on the impact of derivative instruments included in net investment gains (losses). |
(Amounts in millions) | Beginning balance | Increase from securities without allowance in previous periods | Increase (decrease) from securities with allowance in previous periods | Securities sold | Decrease due to change in intent or requirement to sell | Write-offs | Recoveries | Ending balance | ||||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||||||||||
U.S. corporate | $ | 9 | $ | — | $ | — | $ | (7 | ) | $ | — | $ | (2 | ) | $ | — | $ | — | ||||||||||||||
Commercial mortgage-backed | 6 | — | — | (2 | ) | — | — | — | 4 | |||||||||||||||||||||||
Total available-for-sale fixed maturity securities | $ | 15 | $ | — | $ | — | $ | (9 | ) | $ | — | $ | (2 | ) | $ | — | $ | 4 | ||||||||||||||
(Amounts in millions) | Beginning balance | Increase from securities without allowance in previous periods | Increase (decrease) from securities with allowance in previous periods | Securities sold | Decrease due to change in intent or requirement to sell | Write-offs | Recoveries | Ending balance | ||||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||||||||||
U.S. corporate | $ | — | $ | 9 | $ | — | $ | (7 | ) | $ | — | $ | (2 | ) | $ | — | $ | — | ||||||||||||||
Commercial mortgage-backed | — | 6 | — | (2 | ) | — | — | — | 4 | |||||||||||||||||||||||
Total available-for-sale fixed maturity securities | $ | — | $ | 15 | $ | — | $ | (9 | ) | $ | — | $ | (2 | ) | $ | — | $ | 4 | ||||||||||||||
(Amounts in millions) | Beginning balance | Increase from securities without allowance in previous periods | Increase (decrease) from securities with allowance in previous periods | Securities sold | Decrease due to change in intent or requirement to sell | Write-offs | Recoveries | Ending balance | ||||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||||||||||
Commercial mortgage- backed | $ | 4 | $ | 1 | $ | 1 | $ | — | $ | — | $ | — | $ | — | $ | 6 | ||||||||||||||||
Total available-for-sale | $ | 4 | $ | 1 | $ | 1 | $ | — | $ | — | $ | — | $ | — | $ | 6 | ||||||||||||||||
(Amounts in millions) | Beginning balance | Increase from securities without allowance in previous periods | Increase (decrease) from securities with allowance in previous periods | Securities sold | Decrease due to change in intent or requirement to sell | Write-offs | Recoveries | Ending balance | ||||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||||||||||
U.S. corporate | $ | — | $ | 9 | $ | — | $ | (7 | ) | $ | — | $ | (2 | ) | $ | — | $ | — | ||||||||||||||
Commercial mortgage-backed | — | 7 | 1 | (2 | ) | — | — | — | 6 | |||||||||||||||||||||||
Total available-for-sale | $ | — | $ | 16 | $ | 1 | $ | (9 | ) | $ | — | $ | (2 | ) | $ | — | $ | 6 | ||||||||||||||
(Amounts in millions) | June 30, 2023 | December 31, 2022 | ||||||
Net unrealized gains (losses) on fixed maturity securities without an allowance for credit losses | $ | (3,790 | ) | $ | (4,251 | ) | ||
Net unrealized gains (losses) on fixed maturity securities with an allowance for credit losses | — | — | ||||||
Adjustments to policyholder contract balances | 62 | 68 | ||||||
Income taxes, net | 608 | 705 | ||||||
Net unrealized investment gains (losses) | (3,120 | ) | (3,478 | ) | ||||
Less: net unrealized investment gains (losses) attributable to noncontrolling interests | (64 | ) | (71 | ) | ||||
Net unrealized investment gains (losses) attributable to Genworth Financial, Inc. | $ | (3,056 | ) | $ | (3,407 | ) | ||
(Amounts in millions) | September 30, 2023 | December 31, 2022 | ||||||
Net unrealized gains (losses) on fixed maturity securities without an allowance for credit losses | $ | (5,881 | ) | $ | (4,251 | ) | ||
Net unrealized gains (losses) on fixed maturity securities with an allowance for credit losses | — | — | ||||||
Adjustments to policyholder contract balances | 104 | 68 | ||||||
Income taxes, net | 925 | 705 | ||||||
Net unrealized investment gains (losses) | (4,852 | ) | (3,478 | ) | ||||
Less: net unrealized investment gains (losses) attributable to noncontrolling interests | (74 | ) | (71 | ) | ||||
Net unrealized investment gains (losses) attributable to Genworth Financial, Inc. | $ | (4,778 | ) | $ | (3,407 | ) | ||
Three months ended June 30, | Six months ended June 30, | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||
(Amounts in millions) | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||
Beginning balance | $ | (2,500 | ) | $ | 2,151 | $ | (3,407 | ) | $ | 6,077 | $ | (3,056 | ) | $ | (1,518 | ) | $ | (3,407 | ) | $ | 6,077 | |||||||||||
Unrealized gains (losses) arising during the period: | ||||||||||||||||||||||||||||||||
Unrealized gains (losses) on fixed maturity securities | (755 | ) | (4,713 | ) | 415 | (9,843 | ) | (2,102 | ) | (3,098 | ) | (1,687 | ) | (12,941 | ) | |||||||||||||||||
Adjustments to policyholder contract balances | 13 | 77 | (6 | ) | 160 | 42 | 52 | 36 | 212 | |||||||||||||||||||||||
Provision for income taxes | 158 | 935 | (87 | ) | 2,009 | 319 | 508 | 232 | 2,517 | |||||||||||||||||||||||
Change in unrealized gains (losses) on investment securities | (584 | ) | (3,701 | ) | 322 | (7,674 | ) | (1,741 | ) | (2,538 | ) | (1,419 | ) | (10,212 | ) | |||||||||||||||||
Reclassification adjustments to net investment (gains) losses, net of taxes of $(7), $—, $(10) and $(2) | 23 | 4 | 36 | 10 | ||||||||||||||||||||||||||||
Reclassification adjustments to net investment (gains) losses, net of taxes of $(2), $(6), $(12) and $(8) | 9 | 21 | 45 | 31 | ||||||||||||||||||||||||||||
Change in net unrealized investment gains (losses) | (561 | ) | (3,697 | ) | 358 | (7,664 | ) | (1,732 | ) | (2,517 | ) | (1,374 | ) | (10,181 | ) | |||||||||||||||||
Less: change in net unrealized investment gains (losses) attributable to noncontrolling interests | (5 | ) | (28 | ) | 7 | (69 | ) | (10 | ) | (25 | ) | (3 | ) | (94 | ) | |||||||||||||||||
Ending balance | $ | (3,056 | ) | $ | (1,518 | ) | $ | (3,056 | ) | $ | (1,518 | ) | $ | (4,778 | ) | $ | (4,010 | ) | $ | (4,778 | ) | $ | (4,010 | ) | ||||||||
(Amounts in millions) | Amortized cost or cost | Gross unrealized gains | Gross unrealized losses | Allowance for credit losses | Fair value | Amortized cost or cost | Gross unrealized gains | Gross unrealized losses | Allowance for credit losses | Fair value | ||||||||||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||||||||||||||||||
U.S. government, agencies and government-sponsored enterprises | $ | 3,459 | $ | 97 | $ | (167 | ) | $ | — | $ | 3,389 | $ | 3,498 | $ | 6 | $ | (392 | ) | $ | — | $ | 3,112 | ||||||||||||||||||
State and political subdivisions | 2,611 | 21 | (289 | ) | — | 2,343 | 2,566 | 5 | (407 | ) | — | 2,164 | ||||||||||||||||||||||||||||
Non-U.S. government | 708 | 15 | (98 | ) | — | 625 | 699 | 9 | (125 | ) | — | 583 | ||||||||||||||||||||||||||||
U.S. corporate: | ||||||||||||||||||||||||||||||||||||||||
Utilities | 4,339 | 49 | (424 | ) | — | 3,964 | 4,454 | 13 | (611 | ) | — | 3,856 | ||||||||||||||||||||||||||||
Energy | 2,414 | 36 | (202 | ) | — | 2,248 | 2,454 | 18 | (265 | ) | — | 2,207 | ||||||||||||||||||||||||||||
Finance and insurance | 7,915 | 54 | (843 | ) | — | 7,126 | 7,920 | 22 | (1,069 | ) | — | 6,873 | ||||||||||||||||||||||||||||
Consumer—non-cyclical | 4,663 | 94 | (347 | ) | — | 4,410 | 4,632 | 32 | (538 | ) | — | 4,126 | ||||||||||||||||||||||||||||
Technology and communications | 3,196 | 49 | (311 | ) | — | 2,934 | 3,212 | 26 | (444 | ) | — | 2,794 | ||||||||||||||||||||||||||||
Industrial | 1,326 | 15 | (117 | ) | — | 1,224 | 1,309 | 8 | (168 | ) | — | 1,149 | ||||||||||||||||||||||||||||
Capital goods | 2,225 | 44 | (162 | ) | — | 2,107 | 2,255 | 19 | (235 | ) | — | 2,039 | ||||||||||||||||||||||||||||
Consumer—cyclical | 1,737 | 16 | (139 | ) | — | 1,614 | 1,736 | 6 | (194 | ) | — | 1,548 | ||||||||||||||||||||||||||||
Transportation | 1,171 | 33 | (87 | ) | — | 1,117 | 1,181 | 16 | (131 | ) | — | 1,066 | ||||||||||||||||||||||||||||
Other | 311 | 4 | (16 | ) | — | 299 | 320 | 1 | (23 | ) | — | 298 | ||||||||||||||||||||||||||||
Total U.S. corporate | 29,297 | 394 | (2,648 | ) | — | 27,043 | 29,473 | 161 | (3,678 | ) | — | 25,956 | ||||||||||||||||||||||||||||
Non-U.S. corporate: | ||||||||||||||||||||||||||||||||||||||||
Utilities | 813 | — | (78 | ) | — | 735 | 809 | — | (90 | ) | — | 719 | ||||||||||||||||||||||||||||
Energy | 1,043 | 21 | (62 | ) | — | 1,002 | 1,054 | 10 | (86 | ) | — | 978 | ||||||||||||||||||||||||||||
Finance and insurance | 2,054 | 33 | (188 | ) | — | 1,899 | 2,045 | 22 | (223 | ) | — | 1,844 | ||||||||||||||||||||||||||||
Consumer—non-cyclical | 666 | 3 | (77 | ) | — | 592 | 688 | 1 | (107 | ) | — | 582 | ||||||||||||||||||||||||||||
Technology and communications | 977 | 7 | (93 | ) | — | 891 | 974 | 1 | (135 | ) | — | 840 | ||||||||||||||||||||||||||||
Industrial | 838 | 9 | (65 | ) | — | 782 | 853 | 2 | (86 | ) | — | 769 | ||||||||||||||||||||||||||||
Capital goods | 602 | 4 | (51 | ) | — | 555 | 593 | 1 | (70 | ) | — | 524 | ||||||||||||||||||||||||||||
Consumer—cyclical | 239 | 1 | (23 | ) | — | 217 | 241 | — | (30 | ) | — | 211 | ||||||||||||||||||||||||||||
Transportation | 360 | 12 | (26 | ) | — | 346 | 359 | 7 | (32 | ) | — | 334 | ||||||||||||||||||||||||||||
Other | 859 | 13 | (53 | ) | — | 819 | 819 | 3 | (69 | ) | — | 753 | ||||||||||||||||||||||||||||
Total non-U.S. corporate | 8,451 | 103 | (716 | ) | — | 7,838 | 8,435 | 47 | (928 | ) | — | 7,554 | ||||||||||||||||||||||||||||
Residential mortgage-backed | 997 | 4 | (67 | ) | — | 934 | 974 | 1 | (84 | ) | — | 891 | ||||||||||||||||||||||||||||
Commercial mortgage-backed | 1,990 | 1 | (297 | ) | (4 | ) | 1,690 | 1,868 | 1 | (360 | ) | (6 | ) | 1,503 | ||||||||||||||||||||||||||
Other asset-backed | 2,351 | 1 | (144 | ) | — | 2,208 | 2,342 | 1 | (138 | ) | — | 2,205 | ||||||||||||||||||||||||||||
Total available-for-sale fixed maturity securities | $ | 49,864 | $ | 636 | $ | (4,426 | ) | $ | (4 | ) | $ | 46,070 | $ | 49,855 | $ | 231 | $ | (6,112 | ) | $ | (6 | ) | $ | 43,968 | ||||||||||||||||
(Amounts in millions) | Amortized cost or cost | Gross unrealized gains | Gross unrealized losses | Allowance for credit losses | Fair value | |||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||
U.S. government, agencies and government-sponsored enterprises | $ | 3,446 | $ | 86 | $ | (191 | ) | $ | — | $ | 3,341 | |||||||||
State and political subdivisions | 2,726 | 19 | (346 | ) | — | 2,399 | ||||||||||||||
Non-U.S. government | 731 | 15 | (101 | ) | — | 645 | ||||||||||||||
U.S. corporate: | ||||||||||||||||||||
Utilities | 4,295 | 50 | (447 | ) | — | 3,898 | ||||||||||||||
Energy | 2,450 | 33 | (221 | ) | — | 2,262 | ||||||||||||||
Finance and insurance | 8,005 | 59 | (871 | ) | — | 7,193 | ||||||||||||||
Consumer—non-cyclical | 4,776 | 84 | (403 | ) | — | 4,457 | ||||||||||||||
Technology and communications | 3,265 | 43 | (361 | ) | — | 2,947 | ||||||||||||||
Industrial | 1,312 | 15 | (130 | ) | — | 1,197 | ||||||||||||||
Capital goods | 2,290 | 41 | (193 | ) | — | 2,138 | ||||||||||||||
Consumer—cyclical | 1,758 | 14 | (155 | ) | — | 1,617 | ||||||||||||||
Transportation | 1,165 | 32 | (97 | ) | — | 1,100 | ||||||||||||||
Other | 325 | 3 | (18 | ) | — | 310 | ||||||||||||||
Total U.S. corporate | 29,641 | 374 | (2,896 | ) | — | 27,119 | ||||||||||||||
Non-U.S. corporate: | ||||||||||||||||||||
Utilities | 817 | — | (77 | ) | — | 740 | ||||||||||||||
Energy | 1,009 | 19 | (68 | ) | — | 960 | ||||||||||||||
Finance and insurance | 2,124 | 30 | (208 | ) | — | 1,946 | ||||||||||||||
Consumer—non-cyclical | 655 | 1 | (90 | ) | — | 566 | ||||||||||||||
Technology and communications | 997 | 4 | (107 | ) | — | 894 | ||||||||||||||
Industrial | 880 | 8 | (70 | ) | — | 818 | ||||||||||||||
Capital goods | 606 | 3 | (63 | ) | — | 546 | ||||||||||||||
Consumer—cyclical | 308 | — | (32 | ) | — | 276 | ||||||||||||||
Transportation | 392 | 12 | (29 | ) | — | 375 | ||||||||||||||
Other | 932 | 15 | (58 | ) | — | 889 | ||||||||||||||
Total non-U.S. corporate | 8,720 | 92 | (802 | ) | — | 8,010 | ||||||||||||||
Residential mortgage-backed | 1,059 | 7 | (71 | ) | — | 995 | ||||||||||||||
Commercial mortgage-backed | 2,183 | 2 | (277 | ) | — | 1,908 | ||||||||||||||
Other asset-backed | 2,328 | 1 | (163 | ) | — | 2,166 | ||||||||||||||
Total available-for-sale fixed maturity securities | $ | 50,834 | $ | 596 | $ | (4,847 | ) | $ | — | $ | 46,583 | |||||||||
(Amounts in millions) | Amortized cost or cost | Gross unrealized gains | Gross unrealized losses | Allowance for credit losses | Fair value | |||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||
U.S. government, agencies and government-sponsored enterprises | $ | 3,446 | $ | 86 | $ | (191 | ) | $ | — | $ | 3,341 | |||||||||
State and political subdivisions | 2,726 | 19 | (346 | ) | — | 2,399 | ||||||||||||||
Non-U.S. government | 731 | 15 | (101 | ) | — | 645 | ||||||||||||||
U.S. corporate: | ||||||||||||||||||||
Utilities | 4,295 | 50 | (447 | ) | — | 3,898 | ||||||||||||||
Energy | 2,450 | 33 | (221 | ) | — | 2,262 | ||||||||||||||
Finance and insurance | 8,005 | 59 | (871 | ) | — | 7,193 | ||||||||||||||
Consumer—non-cyclical | 4,776 | 84 | (403 | ) | — | 4,457 | ||||||||||||||
Technology and communications | 3,265 | 43 | (361 | ) | — | 2,947 | ||||||||||||||
Industrial | 1,312 | 15 | (130 | ) | — | 1,197 | ||||||||||||||
Capital goods | 2,290 | 41 | (193 | ) | — | 2,138 | ||||||||||||||
Consumer—cyclical | 1,758 | 14 | (155 | ) | — | 1,617 | ||||||||||||||
Transportation | 1,165 | 32 | (97 | ) | — | 1,100 | ||||||||||||||
Other | 325 | 3 | (18 | ) | — | 310 | ||||||||||||||
Total U.S. corporate | 29,641 | 374 | (2,896 | ) | — | 27,119 | ||||||||||||||
Non-U.S. corporate: | ||||||||||||||||||||
Utilities | 817 | — | (77 | ) | — | 740 | ||||||||||||||
Energy | 1,009 | 19 | (68 | ) | — | 960 | ||||||||||||||
Finance and insurance | 2,124 | 30 | (208 | ) | — | 1,946 | ||||||||||||||
Consumer—non-cyclical | 655 | 1 | (90 | ) | — | 566 | ||||||||||||||
Technology and communications | 997 | 4 | (107 | ) | — | 894 | ||||||||||||||
Industrial | 880 | 8 | (70 | ) | — | 818 | ||||||||||||||
Capital goods | 606 | 3 | (63 | ) | — | 546 | ||||||||||||||
Consumer—cyclical | 308 | — | (32 | ) | — | 276 | ||||||||||||||
Transportation | 392 | 12 | (29 | ) | — | 375 | ||||||||||||||
Other | 932 | 15 | (58 | ) | — | 889 | ||||||||||||||
Total non-U.S. corporate | 8,720 | 92 | (802 | ) | — | 8,010 | ||||||||||||||
Residential mortgage-backed | 1,059 | 7 | (71 | ) | — | 995 | ||||||||||||||
Commercial mortgage-backed | 2,183 | 2 | (277 | ) | — | 1,908 | ||||||||||||||
Other asset-backed | 2,328 | 1 | (163 | ) | — | 2,166 | ||||||||||||||
Total available-for-sale | $ | 50,834 | $ | 596 | $ | (4,847 | ) | $ | — | $ | 46,583 | |||||||||
Less than 12 months | 12 months or more | Total | ||||||||||||||||||||||||||||||||||
(Dollar amounts in millions) | Fair value | Gross unrealized losses | Number of securities | Fair value | Gross unrealized losses | Number of securities | Fair value | Gross unrealized losses | Number of securities | |||||||||||||||||||||||||||
Description of Securities | ||||||||||||||||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||||||||||||||
U.S. government, agencies and government-sponsored enterprises | $ | 1,254 | $ | (47 | ) | 69 | $ | 1,337 | $ | (345 | ) | 52 | $ | 2,591 | $ | (392 | ) | 121 | ||||||||||||||||||
State and political subdivisions | 476 | (23 | ) | 81 | 1,448 | (384 | ) | 314 | 1,924 | (407 | ) | 395 | ||||||||||||||||||||||||
Non-U.S. government | 59 | (3 | ) | 15 | 425 | (122 | ) | 85 | 484 | (125 | ) | 100 | ||||||||||||||||||||||||
U.S. corporate | 5,898 | (355 | ) | 894 | 16,088 | (3,323 | ) | 2,663 | 21,986 | (3,678 | ) | 3,557 | ||||||||||||||||||||||||
Non-U.S. corporate | 1,417 | (66 | ) | 182 | 5,062 | (862 | ) | 820 | 6,479 | (928 | ) | 1,002 | ||||||||||||||||||||||||
Residential mortgage-backed | 360 | (12 | ) | 194 | 455 | (72 | ) | 174 | 815 | (84 | ) | 368 | ||||||||||||||||||||||||
Commercial mortgage-backed | 48 | (3 | ) | 13 | 1,425 | (357 | ) | 283 | 1,473 | (360 | ) | 296 | ||||||||||||||||||||||||
Other asset-backed | 287 | (5 | ) | 103 | 1,718 | (133 | ) | 419 | 2,005 | (138 | ) | 522 | ||||||||||||||||||||||||
Total for fixed maturity securities in an unrealized loss position | $ | 9,799 | $ | (514 | ) | 1,551 | $ | 27,958 | $ | (5,598 | ) | 4,810 | $ | 37,757 | $ | (6,112 | ) | 6,361 | ||||||||||||||||||
% Below cost: | ||||||||||||||||||||||||||||||||||||
<20% Below cost | $ | 9,720 | $ | (486 | ) | 1,537 | $ | 18,962 | $ | (2,332 | ) | 3,283 | $ | 28,682 | $ | (2,818 | ) | 4,820 | ||||||||||||||||||
20%-50% Below cost | 79 | (28 | ) | 14 | 8,995 | (3,265 | ) | 1,526 | 9,074 | (3,293 | ) | 1,540 | ||||||||||||||||||||||||
>50% Below cost | — | — | — | 1 | (1 | ) | 1 | 1 | (1 | ) | 1 | |||||||||||||||||||||||||
Total for fixed maturity securities in an unrealized loss position | $ | 9,799 | $ | (514 | ) | 1,551 | $ | 27,958 | $ | (5,598 | ) | 4,810 | $ | 37,757 | $ | (6,112 | ) | 6,361 | ||||||||||||||||||
Investment grade | $ | 9,581 | $ | (508 | ) | 1,525 | $ | 26,633 | $ | (5,377 | ) | 4,547 | $ | 36,214 | $ | (5,885 | ) | 6,072 | ||||||||||||||||||
Below investment grade | 218 | (6 | ) | 26 | 1,325 | (221 | ) | 263 | 1,543 | (227 | ) | 289 | ||||||||||||||||||||||||
Total for fixed maturity securities in an unrealized loss position | $ | 9,799 | $ | (514 | ) | 1,551 | $ | 27,958 | $ | (5,598 | ) | 4,810 | $ | 37,757 | $ | (6,112 | ) | 6,361 | ||||||||||||||||||
Less than 12 months | 12 months or more | Total | ||||||||||||||||||||||||||||||||||
(Dollar amounts in millions) | Fair value | Gross unrealized losses | Number of securities | Fair value | Gross unrealized losses | Number of securities | Fair value | Gross unrealized losses | Number of securities | |||||||||||||||||||||||||||
Description of Securities | ||||||||||||||||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||||||||||||||
U.S. government, agencies and government-sponsored enterprises | $ | 1,412 | $ | (106 | ) | 42 | $ | 329 | $ | (61 | ) | 36 | $ | 1,741 | $ | (167 | ) | 78 | ||||||||||||||||||
State and political subdivisions | 495 | (25 | ) | 77 | 1,252 | (264 | ) | 223 | 1,747 | (289 | ) | 300 | ||||||||||||||||||||||||
Non-U.S. government | 123 | (3 | ) | 22 | 387 | (95 | ) | 60 | 510 | (98 | ) | 82 | ||||||||||||||||||||||||
U.S. corporate | 6,257 | (285 | ) | 878 | 13,764 | (2,363 | ) | 1,768 | 20,021 | (2,648 | ) | 2,646 | ||||||||||||||||||||||||
Non-U.S. corporate | 1,733 | (55 | ) | 226 | 4,353 | (661 | ) | 579 | 6,086 | (716 | ) | 805 | ||||||||||||||||||||||||
Residential mortgage-backed | 391 | (16 | ) | 160 | 323 | (51 | ) | 98 | 714 | (67 | ) | 258 | ||||||||||||||||||||||||
Commercial mortgage-backed | 227 | (18 | ) | 32 | 1,430 | (279 | ) | 230 | 1,657 | (297 | ) | 262 | ||||||||||||||||||||||||
Other asset-backed | 524 | (11 | ) | 147 | 1,550 | (133 | ) | 305 | 2,074 | (144 | ) | 452 | ||||||||||||||||||||||||
Total for fixed maturity securities in an unrealized loss position | $ | 11,162 | $ | (519 | ) | 1,584 | $ | 23,388 | $ | (3,907 | ) | 3,299 | $ | 34,550 | $ | (4,426 | ) | 4,883 | ||||||||||||||||||
% Below cost: | ||||||||||||||||||||||||||||||||||||
<20% Below cost | $ | 11,085 | $ | (494 | ) | 1,576 | $ | 18,715 | $ | (2,339 | ) | 2,671 | $ | 29,800 | $ | (2,833 | ) | 4,247 | ||||||||||||||||||
20%-50% Below cost | 77 | (25 | ) | 8 | 4,673 | (1,568 | ) | 628 | 4,750 | (1,593 | ) | 636 | ||||||||||||||||||||||||
Total for fixed maturity securities in an unrealized loss position | $ | 11,162 | $ | (519 | ) | 1,584 | $ | 23,388 | $ | (3,907 | ) | 3,299 | $ | 34,550 | $ | (4,426 | ) | 4,883 | ||||||||||||||||||
Investment grade | $ | 10,912 | $ | (514 | ) | 1,558 | $ | 22,108 | $ | (3,713 | ) | 3,100 | $ | 33,020 | $ | (4,227 | ) | 4,658 | ||||||||||||||||||
Below investment grade | 250 | (5 | ) | 26 | 1,280 | (194 | ) | 199 | 1,530 | (199 | ) | 225 | ||||||||||||||||||||||||
Total for fixed maturity securities in an unrealized loss position | $ | 11,162 | $ | (519 | ) | 1,584 | $ | 23,388 | $ | (3,907 | ) | 3,299 | $ | 34,550 | $ | (4,426 | ) | 4,883 | ||||||||||||||||||
Less than 12 months | 12 months or more | Total | ||||||||||||||||||||||||||||||||||
(Dollar amounts in millions) | Fair value | Gross unrealized losses | Number of securities | Fair value | Gross unrealized losses | Number of securities | Fair value | Gross unrealized losses | Number of securities | |||||||||||||||||||||||||||
Description of Securities | ||||||||||||||||||||||||||||||||||||
U.S. corporate: | ||||||||||||||||||||||||||||||||||||
Utilities | $ | 883 | $ | (34 | ) | 115 | $ | 1,817 | $ | (390 | ) | 270 | $ | 2,700 | $ | (424 | ) | 385 | ||||||||||||||||||
Energy | 429 | (21 | ) | 77 | 1,173 | (181 | ) | 152 | 1,602 | (202 | ) | 229 | ||||||||||||||||||||||||
Finance and insurance | 1,680 | (82 | ) | 254 | 4,290 | (761 | ) | 514 | 5,970 | (843 | ) | 768 | ||||||||||||||||||||||||
Consumer—non-cyclical | 907 | (51 | ) | 118 | 1,922 | (296 | ) | 214 | 2,829 | (347 | ) | 332 | ||||||||||||||||||||||||
Technology and communications | 910 | (44 | ) | 117 | 1,489 | (267 | ) | 214 | 2,399 | (311 | ) | 331 | ||||||||||||||||||||||||
Industrial | 306 | (7 | ) | 30 | 610 | (110 | ) | 82 | 916 | (117 | ) | 112 | ||||||||||||||||||||||||
Capital goods | 376 | (13 | ) | 59 | 1,003 | (149 | ) | 122 | 1,379 | (162 | ) | 181 | ||||||||||||||||||||||||
Consumer—cyclical | 403 | (15 | ) | 66 | 873 | (124 | ) | 121 | 1,276 | (139 | ) | 187 | ||||||||||||||||||||||||
Transportation | 280 | (16 | ) | 30 | 473 | (71 | ) | 66 | 753 | (87 | ) | 96 | ||||||||||||||||||||||||
Other | 83 | (2 | ) | 12 | 114 | (14 | ) | 13 | 197 | (16 | ) | 25 | ||||||||||||||||||||||||
Subtotal, U.S. corporate securities | 6,257 | (285 | ) | 878 | 13,764 | (2,363 | ) | 1,768 | 20,021 | (2,648 | ) | 2,646 | ||||||||||||||||||||||||
Non-U.S. corporate: | ||||||||||||||||||||||||||||||||||||
Utilities | 233 | (8 | ) | 21 | 498 | (70 | ) | 55 | 731 | (78 | ) | 76 | ||||||||||||||||||||||||
Energy | 267 | (9 | ) | 32 | 373 | (53 | ) | 42 | 640 | (62 | ) | 74 | ||||||||||||||||||||||||
Finance and insurance | 376 | (12 | ) | 67 | 1,162 | (176 | ) | 167 | 1,538 | (188 | ) | 234 | ||||||||||||||||||||||||
Consumer—non-cyclical | 133 | (6 | ) | 16 | 386 | (71 | ) | 47 | 519 | (77 | ) | 63 | ||||||||||||||||||||||||
Technology and communications | 199 | (6 | ) | 25 | 548 | (87 | ) | 73 | 747 | (93 | ) | 98 | ||||||||||||||||||||||||
Industrial | 118 | (5 | ) | 23 | 419 | (60 | ) | 56 | 537 | (65 | ) | 79 | ||||||||||||||||||||||||
Capital goods | 104 | (1 | ) | 11 | 349 | (50 | ) | 47 | 453 | (51 | ) | 58 | ||||||||||||||||||||||||
Consumer—cyclical | 61 | (2 | ) | 4 | 140 | (21 | ) | 25 | 201 | (23 | ) | 29 | ||||||||||||||||||||||||
Transportation | 74 | (3 | ) | 10 | 137 | (23 | ) | 22 | 211 | (26 | ) | 32 | ||||||||||||||||||||||||
Other | 168 | (3 | ) | 17 | 341 | (50 | ) | 45 | 509 | (53 | ) | 62 | ||||||||||||||||||||||||
Subtotal, non-U.S. corporate securities | 1,733 | (55 | ) | 226 | 4,353 | (661 | ) | 579 | 6,086 | (716 | ) | 805 | ||||||||||||||||||||||||
Total for corporate securities in an unrealized loss position | $ | 7,990 | $ | (340 | ) | 1,104 | $ | 18,117 | $ | (3,024 | ) | 2,347 | $ | 26,107 | $ | (3,364 | ) | 3,451 | ||||||||||||||||||
Less than 12 months | 12 months or more | Total | ||||||||||||||||||||||||||||||||||
(Dollar amounts in millions) | Fair value | Gross unrealized losses | Number of securities | Fair value | Gross unrealized losses | Number of securities | Fair value | Gross unrealized losses | Number of securities | |||||||||||||||||||||||||||
Description of Securities | ||||||||||||||||||||||||||||||||||||
U.S. corporate: | ||||||||||||||||||||||||||||||||||||
Utilities | $ | 1,404 | $ | (69 | ) | 188 | $ | 1,963 | $ | (542 | ) | 356 | $ | 3,367 | $ | (611 | ) | 544 | ||||||||||||||||||
Energy | 472 | (30 | ) | 85 | 1,263 | (235 | ) | 221 | 1,735 | (265 | ) | 306 | ||||||||||||||||||||||||
Finance and insurance | 1,318 | (83 | ) | 194 | 4,920 | (986 | ) | 753 | 6,238 | (1,069 | ) | 947 | ||||||||||||||||||||||||
Consumer—non-cyclical | 917 | (62 | ) | 119 | 2,326 | (476 | ) | 372 | 3,243 | (538 | ) | 491 | ||||||||||||||||||||||||
Technology and communications | 486 | (35 | ) | 98 | 2,011 | (409 | ) | 337 | 2,497 | (444 | ) | 435 | ||||||||||||||||||||||||
Industrial | 270 | (19 | ) | 34 | 695 | (149 | ) | 139 | 965 | (168 | ) | 173 | ||||||||||||||||||||||||
Capital goods | 345 | (16 | ) | 64 | 1,149 | (219 | ) | 182 | 1,494 | (235 | ) | 246 | ||||||||||||||||||||||||
Consumer—cyclical | 340 | (21 | ) | 58 | 1,044 | (173 | ) | 177 | 1,384 | (194 | ) | 235 | ||||||||||||||||||||||||
Transportation | 218 | (18 | ) | 40 | 586 | (113 | ) | 101 | 804 | (131 | ) | 141 | ||||||||||||||||||||||||
Other | 128 | (2 | ) | 14 | 131 | (21 | ) | 25 | 259 | (23 | ) | 39 | ||||||||||||||||||||||||
Subtotal, U.S. corporate securities | 5,898 | (355 | ) | 894 | 16,088 | (3,323 | ) | 2,663 | 21,986 | (3,678 | ) | 3,557 | ||||||||||||||||||||||||
Non-U.S. corporate: | ||||||||||||||||||||||||||||||||||||
Utilities | 102 | (6 | ) | 8 | 616 | (84 | ) | 80 | 718 | (90 | ) | 88 | ||||||||||||||||||||||||
Energy | 264 | (13 | ) | 28 | 459 | (73 | ) | 75 | 723 | (86 | ) | 103 | ||||||||||||||||||||||||
Finance and insurance | 262 | (14 | ) | 35 | 1,328 | (209 | ) | 237 | 1,590 | (223 | ) | 272 | ||||||||||||||||||||||||
Consumer—non-cyclical | 81 | (5 | ) | 14 | 463 | (102 | ) | 72 | 544 | (107 | ) | 86 | ||||||||||||||||||||||||
Technology and communications | 161 | (7 | ) | 20 | 622 | (128 | ) | 98 | 783 | (135 | ) | 118 | ||||||||||||||||||||||||
Industrial | 209 | (11 | ) | 40 | 437 | (75 | ) | 74 | 646 | (86 | ) | 114 | ||||||||||||||||||||||||
Capital goods | 145 | (5 | ) | 18 | 358 | (65 | ) | 53 | 503 | (70 | ) | 71 | ||||||||||||||||||||||||
Consumer—cyclical | — | — | — | 184 | (30 | ) | 35 | 184 | (30 | ) | 35 | |||||||||||||||||||||||||
Transportation | — | — | — | 205 | (32 | ) | 33 | 205 | (32 | ) | 33 | |||||||||||||||||||||||||
Other | 193 | (5 | ) | 19 | 390 | (64 | ) | 63 | 583 | (69 | ) | 82 | ||||||||||||||||||||||||
Subtotal, non-U.S. corporate securities | 1,417 | (66 | ) | 182 | 5,062 | (862 | ) | 820 | 6,479 | (928 | ) | 1,002 | ||||||||||||||||||||||||
Total for corporate securities in an unrealized loss position | $ | 7,315 | $ | (421 | ) | 1,076 | $ | 21,150 | $ | (4,185 | ) | 3,483 | $ | 28,465 | $ | (4,606 | ) | 4,559 | ||||||||||||||||||
Less than 12 months | 12 months or more | Total | ||||||||||||||||||||||||||||||||||
(Dollar amounts in millions) | Fair value | Gross unrealized losses | Number of securities | Fair value | Gross unrealized losses | Number of securities | Fair value | Gross unrealized losses | Number of securities | |||||||||||||||||||||||||||
Description of Securities | ||||||||||||||||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||||||||||||||
U.S. government, agencies and government-sponsored enterprises | $ | 1,585 | $ | (189 | ) | 55 | $ | 17 | $ | (2 | ) | 6 | $ | 1,602 | $ | (191 | ) | 61 | ||||||||||||||||||
State and political subdivisions | 1,559 | (269 | ) | 258 | 261 | (77 | ) | 66 | 1,820 | (346 | ) | 324 | ||||||||||||||||||||||||
Non-U.S. government | 351 | (54 | ) | 59 | 152 | (47 | ) | 23 | 503 | (101 | ) | 82 | ||||||||||||||||||||||||
U.S. corporate | 18,480 | (2,344 | ) | 2,452 | 2,001 | (552 | ) | 236 | 20,481 | (2,896 | ) | 2,688 | ||||||||||||||||||||||||
Non-U.S. corporate | 5,593 | (599 | ) | 732 | 748 | (203 | ) | 111 | 6,341 | (802 | ) | 843 | ||||||||||||||||||||||||
Residential mortgage-backed | 569 | (51 | ) | 192 | 65 | (20 | ) | 22 | 634 | (71 | ) | 214 | ||||||||||||||||||||||||
Commercial mortgage-backed | 1,765 | (255 | ) | 265 | 88 | (22 | ) | 16 | 1,853 | (277 | ) | 281 | ||||||||||||||||||||||||
Other asset-backed | 1,455 | (83 | ) | 347 | 598 | (80 | ) | 101 | 2,053 | (163 | ) | 448 | ||||||||||||||||||||||||
Total for fixed maturity securities in an unrealized loss position | $ | 31,357 | $ | (3,844 | ) | 4,360 | $ | 3,930 | $ | (1,003 | ) | 581 | $ | 35,287 | $ | (4,847 | ) | 4,941 | ||||||||||||||||||
% Below cost: | ||||||||||||||||||||||||||||||||||||
<20% Below cost | $ | 27,596 | $ | (2,587 | ) | 3,835 | $ | 1,819 | $ | (291 | ) | 310 | $ | 29,415 | $ | (2,878 | ) | 4,145 | ||||||||||||||||||
20%-50% Below cost | 3,757 | (1,251 | ) | 523 | 2,111 | (712 | ) | 271 | 5,868 | (1,963 | ) | 794 | ||||||||||||||||||||||||
>50% Below cost | 4 | (6 | ) | 2 | — | — | — | 4 | (6 | ) | 2 | |||||||||||||||||||||||||
Total for fixed maturity securities in an unrealized loss position | $ | 31,357 | $ | (3,844 | ) | 4,360 | $ | 3,930 | $ | (1,003 | ) | 581 | $ | 35,287 | $ | (4,847 | ) | 4,941 | ||||||||||||||||||
Investment grade | $ | 29,959 | $ | (3,687 | ) | 4,158 | $ | 3,590 | $ | (915 | ) | 537 | $ | 33,549 | $ | (4,602 | ) | 4,695 | ||||||||||||||||||
Below investment grade | 1,398 | (157 | ) | 202 | 340 | (88 | ) | 44 | 1,738 | (245 | ) | 246 | ||||||||||||||||||||||||
Total for fixed maturity securities in an unrealized loss position | $ | 31,357 | $ | (3,844 | ) | 4,360 | $ | 3,930 | $ | (1,003 | ) | 581 | $ | 35,287 | $ | (4,847 | ) | 4,941 | ||||||||||||||||||
Less than 12 months | 12 months or more | Total | ||||||||||||||||||||||||||||||||||
(Dollar amounts in millions) | Fair value | Gross unrealized losses | Number of securities | Fair value | Gross unrealized losses | Number of securities | Fair value | Gross unrealized losses | Number of securities | |||||||||||||||||||||||||||
Description of Securities | ||||||||||||||||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||||||||||||||
U.S. government, agencies and government-sponsored enterprises | $ | 1,585 | $ | (189 | ) | 55 | $ | 17 | $ | (2 | ) | 6 | $ | 1,602 | $ | (191 | ) | 61 | ||||||||||||||||||
State and political subdivisions | 1,559 | (269 | ) | 258 | 261 | (77 | ) | 66 | 1,820 | (346 | ) | 324 | ||||||||||||||||||||||||
Non-U.S. government | 351 | (54 | ) | 59 | 152 | (47 | ) | 23 | 503 | (101 | ) | 82 | ||||||||||||||||||||||||
U.S. corporate | 18,480 | (2,344 | ) | 2,452 | 2,001 | (552 | ) | 236 | 20,481 | (2,896 | ) | 2,688 | ||||||||||||||||||||||||
Non-U.S. corporate | 5,593 | (599 | ) | 732 | 748 | (203 | ) | 111 | 6,341 | (802 | ) | 843 | ||||||||||||||||||||||||
Residential mortgage-backed | 569 | (51 | ) | 192 | 65 | (20 | ) | 22 | 634 | (71 | ) | 214 | ||||||||||||||||||||||||
Commercial mortgage-backed | 1,765 | (255 | ) | 265 | 88 | (22 | ) | 16 | 1,853 | (277 | ) | 281 | ||||||||||||||||||||||||
Other asset-backed | 1,455 | (83 | ) | 347 | 598 | (80 | ) | 101 | 2,053 | (163 | ) | 448 | ||||||||||||||||||||||||
Total for fixed maturity securities in an unrealized loss position | $ | 31,357 | $ | (3,844 | ) | 4,360 | $ | 3,930 | $ | (1,003 | ) | 581 | $ | 35,287 | $ | (4,847 | ) | 4,941 | ||||||||||||||||||
% Below cost: | ||||||||||||||||||||||||||||||||||||
<20% Below cost | $ | 27,596 | $ | (2,587 | ) | 3,835 | $ | 1,819 | $ | (291 | ) | 310 | $ | 29,415 | $ | (2,878 | ) | 4,145 | ||||||||||||||||||
20%-50% Below cost | 3,757 | (1,251 | ) | 523 | 2,111 | (712 | ) | 271 | 5,868 | (1,963 | ) | 794 | ||||||||||||||||||||||||
>50% Below cost | 4 | (6 | ) | 2 | — | — | — | 4 | (6 | ) | 2 | |||||||||||||||||||||||||
Total for fixed maturity securities in an unrealized loss position | $ | 31,357 | $ | (3,844 | ) | 4,360 | $ | 3,930 | $ | (1,003 | ) | 581 | $ | 35,287 | $ | (4,847 | ) | 4,941 | ||||||||||||||||||
Investment grade | $ | 29,959 | $ | (3,687 | ) | 4,158 | $ | 3,590 | $ | (915 | ) | 537 | $ | 33,549 | $ | (4,602 | ) | 4,695 | ||||||||||||||||||
Below investment grade | 1,398 | (157 | ) | 202 | 340 | (88 | ) | 44 | 1,738 | (245 | ) | 246 | ||||||||||||||||||||||||
Total for fixed maturity securities in an unrealized loss position | $ | 31,357 | $ | (3,844 | ) | 4,360 | $ | 3,930 | $ | (1,003 | ) | 581 | $ | 35,287 | $ | (4,847 | ) | 4,941 | ||||||||||||||||||
Less than 12 months | 12 months or more | Total | ||||||||||||||||||||||||||||||||||
(Dollar amounts in millions) | Fair value | Gross unrealized losses | Number of securities | Fair value | Gross unrealized losses | Number of securities | Fair value | Gross unrealized losses | Number of securities | |||||||||||||||||||||||||||
Description of Securities | ||||||||||||||||||||||||||||||||||||
U.S. corporate: | ||||||||||||||||||||||||||||||||||||
Utilities | $ | 2,447 | $ | (398 | ) | 345 | $ | 187 | $ | (49 | ) | 37 | $ | 2,634 | $ | (447 | ) | 382 | ||||||||||||||||||
Energy | 1,538 | (187 | ) | 226 | 144 | (34 | ) | 14 | 1,682 | (221 | ) | 240 | ||||||||||||||||||||||||
Finance and insurance | 5,250 | (668 | ) | 696 | 706 | (203 | ) | 74 | 5,956 | (871 | ) | 770 | ||||||||||||||||||||||||
Consumer—non-cyclical | 2,805 | (342 | ) | 317 | 201 | (61 | ) | 22 | 3,006 | (403 | ) | 339 | ||||||||||||||||||||||||
Technology and communications | 2,259 | (273 | ) | 304 | 271 | (88 | ) | 32 | 2,530 | (361 | ) | 336 | ||||||||||||||||||||||||
Industrial | 829 | (105 | ) | 104 | 110 | (25 | ) | 13 | 939 | (130 | ) | 117 | ||||||||||||||||||||||||
Capital goods | 1,332 | (153 | ) | 169 | 148 | (40 | ) | 16 | 1,480 | (193 | ) | 185 | ||||||||||||||||||||||||
Consumer—cyclical | 1,138 | (108 | ) | 173 | 194 | (47 | ) | 22 | 1,332 | (155 | ) | 195 | ||||||||||||||||||||||||
Transportation | 746 | (93 | ) | 95 | 21 | (4 | ) | 5 | 767 | (97 | ) | 100 | ||||||||||||||||||||||||
Other | 136 | (17 | ) | 23 | 19 | (1 | ) | 1 | 155 | (18 | ) | 24 | ||||||||||||||||||||||||
Subtotal, U.S. corporate securities | 18,480 | (2,344 | ) | 2,452 | 2,001 | (552 | ) | 236 | 20,481 | (2,896 | ) | 2,688 | ||||||||||||||||||||||||
Non-U.S. corporate: | ||||||||||||||||||||||||||||||||||||
Utilities | 640 | (63 | ) | 66 | 57 | (14 | ) | 9 | 697 | (77 | ) | 75 | ||||||||||||||||||||||||
Energy | 604 | (61 | ) | 69 | 40 | (7 | ) | 5 | 644 | (68 | ) | 74 | ||||||||||||||||||||||||
Finance and insurance | 1,310 | (122 | ) | 204 | 296 | (86 | ) | 42 | 1,606 | (208 | ) | 246 | ||||||||||||||||||||||||
Consumer—non-cyclical | 491 | (74 | ) | 56 | 54 | (16 | ) | 11 | 545 | (90 | ) | 67 | ||||||||||||||||||||||||
Technology and communications | 740 | (96 | ) | 93 | 39 | (11 | ) | 8 | 779 | (107 | ) | 101 | ||||||||||||||||||||||||
Industrial | 480 | (45 | ) | 71 | 105 | (25 | ) | 13 | 585 | (70 | ) | 84 | ||||||||||||||||||||||||
Capital goods | 394 | (46 | ) | 52 | 62 | (17 | ) | 6 | 456 | (63 | ) | 58 | ||||||||||||||||||||||||
Consumer—cyclical | 241 | (28 | ) | 31 | 23 | (4 | ) | 6 | 264 | (32 | ) | 37 | ||||||||||||||||||||||||
Transportation | 180 | (21 | ) | 26 | 29 | (8 | ) | 5 | 209 | (29 | ) | 31 | ||||||||||||||||||||||||
Other | 513 | (43 | ) | 64 | 43 | (15 | ) | 6 | 556 | (58 | ) | 70 | ||||||||||||||||||||||||
Subtotal, non-U.S. corporate securities | 5,593 | (599 | ) | 732 | 748 | (203 | ) | 111 | 6,341 | (802 | ) | 843 | ||||||||||||||||||||||||
Total for corporate securities in an unrealized loss position | $ | 24,073 | $ | (2,943 | ) | 3,184 | $ | 2,749 | $ | (755 | ) | 347 | $ | 26,822 | $ | (3,698 | ) | 3,531 | ||||||||||||||||||
Less than 12 months | 12 months or more | Total | ||||||||||||||||||||||||||||||||||
(Dollar amounts in millions) | Fair value | Gross unrealized losses | Number of securities | Fair value | Gross unrealized losses | Number of securities | Fair value | Gross unrealized losses | Number of securities | |||||||||||||||||||||||||||
Description of Securities | ||||||||||||||||||||||||||||||||||||
U.S. corporate: | ||||||||||||||||||||||||||||||||||||
Utilities | $ | 2,447 | $ | (398 | ) | 345 | $ | 187 | $ | (49 | ) | 37 | $ | 2,634 | $ | (447 | ) | 382 | ||||||||||||||||||
Energy | 1,538 | (187 | ) | 226 | 144 | (34 | ) | 14 | 1,682 | (221 | ) | 240 | ||||||||||||||||||||||||
Finance and insurance | 5,250 | (668 | ) | 696 | 706 | (203 | ) | 74 | 5,956 | (871 | ) | 770 | ||||||||||||||||||||||||
Consumer—non-cyclical | 2,805 | (342 | ) | 317 | 201 | (61 | ) | 22 | 3,006 | (403 | ) | 339 | ||||||||||||||||||||||||
Technology and | ||||||||||||||||||||||||||||||||||||
communications | 2,259 | (273 | ) | 304 | 271 | (88 | ) | 32 | 2,530 | (361 | ) | 336 | ||||||||||||||||||||||||
Industrial | 829 | (105 | ) | 104 | 110 | (25 | ) | 13 | 939 | (130 | ) | 117 | ||||||||||||||||||||||||
Capital goods | 1,332 | (153 | ) | 169 | 148 | (40 | ) | 16 | 1,480 | (193 | ) | 185 | ||||||||||||||||||||||||
Consumer—cyclical | 1,138 | (108 | ) | 173 | 194 | (47 | ) | 22 | 1,332 | (155 | ) | 195 | ||||||||||||||||||||||||
Transportation | 746 | (93 | ) | 95 | 21 | (4 | ) | 5 | 767 | (97 | ) | 100 | ||||||||||||||||||||||||
Other | 136 | (17 | ) | 23 | 19 | (1 | ) | 1 | 155 | (18 | ) | 24 | ||||||||||||||||||||||||
Subtotal, U.S. corporate securities | 18,480 | (2,344 | ) | 2,452 | 2,001 | (552 | ) | 236 | 20,481 | (2,896 | ) | 2,688 | ||||||||||||||||||||||||
Non-U.S. corporate: | ||||||||||||||||||||||||||||||||||||
Utilities | 640 | (63 | ) | 66 | 57 | (14 | ) | 9 | 697 | (77 | ) | 75 | ||||||||||||||||||||||||
Energy | 604 | (61 | ) | 69 | 40 | (7 | ) | 5 | 644 | (68 | ) | 74 | ||||||||||||||||||||||||
Finance and insurance | 1,310 | (122 | ) | 204 | 296 | (86 | ) | 42 | 1,606 | (208 | ) | 246 | ||||||||||||||||||||||||
Consumer—non-cyclical | 491 | (74 | ) | 56 | 54 | (16 | ) | 11 | 545 | (90 | ) | 67 | ||||||||||||||||||||||||
Technology and communications | 740 | (96 | ) | 93 | 39 | (11 | ) | 8 | 779 | (107 | ) | 101 | ||||||||||||||||||||||||
Industrial | 480 | (45 | ) | 71 | 105 | (25 | ) | 13 | 585 | (70 | ) | 84 | ||||||||||||||||||||||||
Capital goods | 394 | (46 | ) | 52 | 62 | (17 | ) | 6 | 456 | (63 | ) | 58 | ||||||||||||||||||||||||
Consumer—cyclical | 241 | (28 | ) | 31 | 23 | (4 | ) | 6 | 264 | (32 | ) | 37 | ||||||||||||||||||||||||
Transportation | 180 | (21 | ) | 26 | 29 | (8 | ) | 5 | 209 | (29 | ) | 31 | ||||||||||||||||||||||||
Other | 513 | (43 | ) | 64 | 43 | (15 | ) | 6 | 556 | (58 | ) | 70 | ||||||||||||||||||||||||
Subtotal, non-U.S. corporate securities | 5,593 | (599 | ) | 732 | 748 | (203 | ) | 111 | 6,341 | (802 | ) | 843 | ||||||||||||||||||||||||
Total for corporate securities in an unrealized loss position | $ | 24,073 | $ | (2,943 | ) | 3,184 | $ | 2,749 | $ | (755 | ) | 347 | $ | 26,822 | $ | (3,698 | ) | 3,531 | ||||||||||||||||||
(Amounts in millions) | Amortized cost or cost | Fair value | ||||||
Due one year or less | $ | 1,389 | $ | 1,375 | ||||
Due after one year through five years | 8,373 | 8,000 | ||||||
Due after five years through ten years | 12,727 | 11,662 | ||||||
Due after ten years | 22,037 | 20,201 | ||||||
Subtotal | 44,526 | 41,238 | ||||||
Residential mortgage-backed | 997 | 934 | ||||||
Commercial mortgage-backed | 1,990 | 1,690 | ||||||
Other asset-backed | 2,351 | 2,208 | ||||||
Total | $ | 49,864 | $ | 46,070 | ||||
(Amounts in millions) | Amortized cost or cost | Fair value | ||||||
Due one year or less | $ | 1,443 | $ | 1,426 | ||||
Due after one year through five years | 8,557 | 8,115 | ||||||
Due after five years through ten years | 12,791 | 11,368 | ||||||
Due after ten years | 21,880 | 18,460 | ||||||
Subtotal | 44,671 | 39,369 | ||||||
Residential mortgage-backed | 974 | 891 | ||||||
Commercial mortgage-backed | 1,868 | 1,503 | ||||||
Other asset-backed | 2,342 | 2,205 | ||||||
Total | $ | 49,855 | $ | 43,968 | ||||
June 30, 2023 | December 31, 2022 | |||||||||||||||
(Amounts in millions) | Carrying value | % of total | Carrying value | % of total | ||||||||||||
Property type: | ||||||||||||||||
Retail | $ | 2,859 | 42 | % | $ | 2,916 | 42 | % | ||||||||
Office | 1,516 | 22 | 1,579 | 22 | ||||||||||||
Industrial | 1,441 | 21 | 1,456 | 21 | ||||||||||||
Apartments | 534 | 8 | 561 | 8 | ||||||||||||
Mixed use | 379 | 5 | 371 | 5 | ||||||||||||
Other | 147 | 2 | 149 | 2 | ||||||||||||
Subtotal | 6,876 | 100 | % | 7,032 | 100 | % | ||||||||||
Allowance for credit losses | (24 | ) | (22 | ) | ||||||||||||
Total | $ | 6,852 | $ | 7,010 | ||||||||||||
September 30, 2023 | December 31, 2022 | |||||||||||||||
(Amounts in millions) | Carrying value | % of total | Carrying value | % of total | ||||||||||||
Property type: | ||||||||||||||||
Retail | $ | 2,839 | 42 | % | $ | 2,916 | 42 | % | ||||||||
Office | 1,499 | 22 | 1,579 | 22 | ||||||||||||
Industrial | 1,422 | 21 | 1,456 | 21 | ||||||||||||
Apartments | 530 | 8 | 561 | 8 | ||||||||||||
Mixed use | 370 | 5 | 371 | 5 | ||||||||||||
Other | 158 | 2 | 149 | 2 | ||||||||||||
Subtotal | 6,818 | 100 | % | 7,032 | 100 | % | ||||||||||
Allowance for credit losses | (25 | ) | (22 | ) | ||||||||||||
Total | $ | 6,793 | $ | 7,010 | ||||||||||||
June 30, 2023 | December 31, 2022 | |||||||||||||||
(Amounts in millions) | Carrying value | % of total | Carrying value | % of total | ||||||||||||
Geographic region: | ||||||||||||||||
South Atlantic | $ | 1,782 | 26 | % | $ | 1,809 | 26 | % | ||||||||
Pacific | 1,310 | 19 | 1,340 | 19 | ||||||||||||
Mountain | 1,006 | 15 | 1,023 | 15 | ||||||||||||
Middle Atlantic | 944 | 14 | 988 | 14 | ||||||||||||
West South Central | 566 | 8 | 578 | 8 | ||||||||||||
East North Central | 453 | 6 | 454 | 6 | ||||||||||||
West North Central | 415 | 6 | 438 | 6 | ||||||||||||
East South Central | 213 | 3 | 218 | 3 | ||||||||||||
New England | 187 | 3 | 184 | 3 | ||||||||||||
Subtotal | 6,876 | 100 | % | 7,032 | 100 | % | ||||||||||
Allowance for credit losses | (24 | ) | (22 | ) | ||||||||||||
Total | $ | 6,852 | $ | 7,010 | ||||||||||||
September 30, 2023 | December 31, 2022 | |||||||||||||||
(Amounts in millions) | Carrying value | % of total | Carrying value | % of total | ||||||||||||
Geographic region: | ||||||||||||||||
South Atlantic | $ | 1,795 | 26 | % | $ | 1,809 | 26 | % | ||||||||
Pacific | 1,276 | 19 | 1,340 | 19 | ||||||||||||
Mountain | 1,011 | 15 | 1,023 | 15 | ||||||||||||
Middle Atlantic | 916 | 13 | 988 | 14 | ||||||||||||
West South Central | 560 | 8 | 578 | 8 | ||||||||||||
East North Central | 453 | 7 | 454 | 6 | ||||||||||||
West North Central | 411 | 6 | 438 | 6 | ||||||||||||
East South Central | 211 | 3 | 218 | 3 | ||||||||||||
New England | 185 | 3 | 184 | 3 | ||||||||||||
Subtotal | 6,818 | 100 | % | 7,032 | 100 | % | ||||||||||
Allowance for credit losses | (25 | ) | (22 | ) | ||||||||||||
Total | $ | 6,793 | $ | 7,010 | ||||||||||||
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
(Amounts in millions) | 2023 | 2022 | 2023 | 2022 | ||||||||||||
Allowance for credit losses: | ||||||||||||||||
Beginning balance | $ | 24 | $ | 25 | $ | 22 | $ | 26 | ||||||||
Provision | — | (3 | ) | 2 | (4 | ) | ||||||||||
Write-offs | — | — | — | — | ||||||||||||
Recoveries | — | 1 | — | 1 | ||||||||||||
Ending balance | $ | 24 | $ | 23 | $ | 24 | $ | 23 | ||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
(Amounts in millions) | 2023 | 2022 | 2023 | 2022 | ||||||||||||
Allowance for credit losses: | ||||||||||||||||
Beginning balance | $ | 24 | $ | 23 | $ | 22 | $ | 26 | ||||||||
Provision | 1 | — | 3 | (4 | ) | |||||||||||
Write-offs | — | — | — | — | ||||||||||||
Recoveries | — | — | — | 1 | ||||||||||||
Ending balance | $ | 25 | $ | 23 | $ | 25 | $ | 23 | ||||||||
(Amounts in millions) | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 and prior | Total | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 and prior | Total | ||||||||||||||||||||||||||||||||||||||||||
Debt-to-value: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
0% - 50% | $ | 2 | $ | 41 | $ | 40 | $ | 98 | $ | 118 | $ | 2,107 | $ | 2,406 | $ | 2 | $ | 49 | $ | 86 | $ | 116 | $ | 121 | $ | 1,968 | $ | 2,342 | ||||||||||||||||||||||||||||
51% - 60% | 16 | 57 | 131 | 103 | 148 | 887 | 1,342 | 23 | 110 | 222 | 86 | 150 | 843 | 1,434 | ||||||||||||||||||||||||||||||||||||||||||
61% - 75% | 94 | 841 | 746 | 285 | 427 | 693 | 3,086 | 152 | 775 | 603 | 277 | 402 | 782 | 2,991 | ||||||||||||||||||||||||||||||||||||||||||
76% - 100% | — | — | — | — | 8 | 34 | 42 | — | — | — | 4 | 23 | 24 | 51 | ||||||||||||||||||||||||||||||||||||||||||
Greater than 100% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Total amortized cost | $ | 112 | $ | 939 | $ | 917 | $ | 486 | $ | 701 | $ | 3,721 | $ | 6,876 | $ | 177 | $ | 934 | $ | 911 | $ | 483 | $ | 696 | $ | 3,617 | $ | 6,818 | ||||||||||||||||||||||||||||
Debt service coverage ratio: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less than 1.00 | $ | — | $ | 7 | $ | 10 | $ | 6 | $ | 46 | $ | 177 | $ | 246 | $ | — | $ | 17 | $ | 4 | $ | 18 | $ | 37 | $ | 207 | $ | 283 | ||||||||||||||||||||||||||||
1.00 - 1.25 | 14 | 17 | — | 16 | 19 | 198 | 264 | 14 | 56 | 9 | 19 | 36 | 155 | 289 | ||||||||||||||||||||||||||||||||||||||||||
1.26 - 1.50 | 52 | 287 | 69 | 64 | 162 | 465 | 1,099 | 105 | 224 | 104 | 68 | 160 | 478 | 1,139 | ||||||||||||||||||||||||||||||||||||||||||
1.51 - 2.00 | 44 | 575 | 607 | 202 | 266 | 1,373 | 3,067 | 56 | 372 | 424 | 206 | 263 | 1,288 | 2,609 | ||||||||||||||||||||||||||||||||||||||||||
Greater than 2.00 | 2 | 53 | 231 | 198 | 208 | 1,508 | 2,200 | 2 | 265 | 370 | 172 | 200 | 1,489 | 2,498 | ||||||||||||||||||||||||||||||||||||||||||
Total amortized cost | $ | 112 | $ | 939 | $ | 917 | $ | 486 | $ | 701 | $ | 3,721 | $ | 6,876 | $ | 177 | $ | 934 | $ | 911 | $ | 483 | $ | 696 | $ | 3,617 | $ | 6,818 | ||||||||||||||||||||||||||||
June 30, 2023 | September 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||
(Amounts in millions) | 0% - 50% | 51% - 60% | 61% - 75% | 76% - 100% | Greater than 100% | Total | 0% - 50% | 51% - 60% | 61% - 75% | 76% - 100% | Greater than 100% | Total | ||||||||||||||||||||||||||||||||||||
Property type: | ||||||||||||||||||||||||||||||||||||||||||||||||
Retail | $ | 902 | $ | 690 | $ | 1,239 | $ | 28 | $ | — | $ | 2,859 | $ | 918 | $ | 703 | $ | 1,218 | $ | — | $ | — | $ | 2,839 | ||||||||||||||||||||||||
Office | 454 | 274 | 788 | — | — | 1,516 | 353 | 329 | 781 | 36 | — | 1,499 | ||||||||||||||||||||||||||||||||||||
Industrial | 694 | 175 | 572 | — | — | 1,441 | 675 | 258 | 489 | — | — | 1,422 | ||||||||||||||||||||||||||||||||||||
Apartments | 177 | 91 | 258 | 8 | — | 534 | 200 | 57 | 265 | 8 | — | 530 | ||||||||||||||||||||||||||||||||||||
Mixed use | 93 | 103 | 177 | 6 | — | 379 | 107 | 76 | 180 | 7 | — | 370 | ||||||||||||||||||||||||||||||||||||
Other | 86 | 9 | 52 | — | — | 147 | 89 | 11 | 58 | — | — | 158 | ||||||||||||||||||||||||||||||||||||
Total amortized cost | $ | 2,406 | $ | 1,342 | $ | 3,086 | $ | 42 | $ | — | $ | 6,876 | $ | 2,342 | $ | 1,434 | $ | 2,991 | $ | 51 | $ | — | $ | 6,818 | ||||||||||||||||||||||||
% of total | 35 | % | 19 | % | 45 | % | 1 | % | — | % | 100 | % | 34 | % | 21 | % | 44 | % | 1 | % | — | % | 100 | % | ||||||||||||||||||||||||
Weighted-average debt service coverage ratio | 2.34 | 1.91 | 1.62 | 1.59 | — | 1.93 | 2.42 | 1.87 | 1.66 | 0.87 | — | 1.96 | ||||||||||||||||||||||||||||||||||||
December 31, 2022 | ||||||||||||||||||||||||
(Amounts in millions) | 0% - 50% | 51% - 60% | 61% - 75% | 76% - 100% | Greater than 100% | Total | ||||||||||||||||||
Property type: | ||||||||||||||||||||||||
Retail | $ | 907 | $ | 649 | $ | 1,332 | $ | 28 | $ | — | $ | 2,916 | ||||||||||||
Office | 445 | 272 | 848 | 14 | — | 1,579 | ||||||||||||||||||
Industrial | 668 | 243 | 545 | — | — | 1,456 | ||||||||||||||||||
Apartments | 184 | 90 | 279 | 8 | — | 561 | ||||||||||||||||||
Mixed use | 93 | 79 | 199 | — | — | 371 | ||||||||||||||||||
Other | 88 | 9 | 52 | — | — | 149 | ||||||||||||||||||
Total amortized cost | $ | 2,385 | $ | 1,342 | $ | 3,255 | $ | 50 | $ | — | $ | 7,032 | ||||||||||||
% of total | 34 | % | 19 | % | 46 | % | 1 | % | — | % | 100 | % | ||||||||||||
Weighted-average debt service coverage ratio | 2.35 | 1.95 | 1.63 | 1.34 | — | 1.93 | ||||||||||||||||||
June 30, 2023 | ||||||||||||||||||||||||
(Amounts in millions) | Less than 1.00 | 1.00 - 1.25 | 1.26 - 1.50 | 1.51 - 2.00 | Greater than 2.00 | Total | ||||||||||||||||||
Property type: | ||||||||||||||||||||||||
Retail | $ | 87 | $ | 69 | $ | 557 | $ | 1,356 | $ | 790 | $ | 2,859 | ||||||||||||
Office | 60 | 121 | 153 | 656 | 526 | 1,516 | ||||||||||||||||||
Industrial | 21 | 43 | 188 | 589 | 600 | 1,441 | ||||||||||||||||||
Apartments | 14 | 16 | 143 | 231 | 130 | 534 | ||||||||||||||||||
Mixed use | 23 | 13 | 49 | 203 | 91 | 379 | ||||||||||||||||||
Other | 41 | 2 | 9 | 32 | 63 | 147 | ||||||||||||||||||
Total amortized cost | $ | 246 | $ | 264 | $ | 1,099 | $ | 3,067 | $ | 2,200 | $ | 6,876 | ||||||||||||
% of total | 4 | % | 4 | % | 16 | % | 44 | % | 32 | % | 100 | % | ||||||||||||
Weighted-average debt-to-value | 59 | % | 61 | % | 64 | % | 60 | % | 44 | % | 55 | % | ||||||||||||
September 30, 2023 | ||||||||||||||||||||||||
(Amounts in millions) | Less than 1.00 | 1.00 – 1.25 | 1.26 – 1.50 | 1.51 – 2.00 | Greater than 2.00 | Total | ||||||||||||||||||
Property type: | ||||||||||||||||||||||||
Retail | $ | 58 | $ | 107 | $ | 550 | $ | 1,156 | $ | 968 | $ | 2,839 | ||||||||||||
Office | 111 | 53 | 247 | 624 | 464 | 1,499 | ||||||||||||||||||
Industrial | 50 | 31 | 155 | 461 | 725 | 1,422 | ||||||||||||||||||
Apartments | 12 | 51 | 84 | 192 | 191 | 530 | ||||||||||||||||||
Mixed use | 27 | 14 | 81 | 162 | 86 | 370 | ||||||||||||||||||
Other | 25 | 33 | 22 | 14 | 64 | 158 | ||||||||||||||||||
Total amortized cost | $ | 283 | $ | 289 | $ | 1,139 | $ | 2,609 | $ | 2,498 | $ | 6,818 | ||||||||||||
% of total | 4 | % | 4 | % | 17 | % | 38 | % | 37 | % | 100 | % | ||||||||||||
Weighted-average debt-to-value | 64 | % | 63 | % | 64 | % | 58 | % | 47 | % | 55 | % | ||||||||||||
December 31, 2022 | ||||||||||||||||||||||||
(Amounts in millions) | Less than 1.00 | 1.00 - 1.25 | 1.26 - 1.50 | 1.51 - 2.00 | Greater than 2.00 | Total | ||||||||||||||||||
Property type: | ||||||||||||||||||||||||
Retail | $ | 88 | $ | 68 | $ | 560 | $ | 1,380 | $ | 820 | $ | 2,916 | ||||||||||||
Office | 81 | 131 | 155 | 666 | 546 | 1,579 | ||||||||||||||||||
Industrial | 20 | 44 | 194 | 574 | 624 | 1,456 | ||||||||||||||||||
Apartments | 14 | 11 | 150 | 242 | 144 | 561 | ||||||||||||||||||
Mixed use | 25 | 16 | 50 | 190 | 90 | 371 | ||||||||||||||||||
Other | 42 | 2 | 9 | 33 | 63 | 149 | ||||||||||||||||||
Total amortized cost | $ | 270 | $ | 272 | $ | 1,118 | $ | 3,085 | $ | 2,287 | $ | 7,032 | ||||||||||||
% of total | 4 | % | 4 | % | 16 | % | 44 | % | 32 | % | 100 | % | ||||||||||||
Weighted-average debt-to-value | 61 | % | 62 | % | 63 | % | 60 | % | 44 | % | 56 | % | ||||||||||||
December 31, 2022 | ||||||||||||||||||||||||
(Amounts in millions) | Less than 1.00 | 1.00 – 1.25 | 1.26 – 1.50 | 1.51 – 2.00 | Greater than 2.00 | Total | ||||||||||||||||||
Property type: | ||||||||||||||||||||||||
Retail | $ | 88 | $ | 68 | $ | 560 | $ | 1,380 | $ | 820 | $ | 2,916 | ||||||||||||
Office | 81 | 131 | 155 | 666 | 546 | 1,579 | ||||||||||||||||||
Industrial | 20 | 44 | 194 | 574 | 624 | 1,456 | ||||||||||||||||||
Apartments | 14 | 11 | 150 | 242 | 144 | 561 | ||||||||||||||||||
Mixed use | 25 | 16 | 50 | 190 | 90 | 371 | ||||||||||||||||||
Other | 42 | 2 | 9 | 33 | 63 | 149 | ||||||||||||||||||
Total amortized cost | $ | 270 | $ | 272 | $ | 1,118 | $ | 3,085 | $ | 2,287 | $ | 7,032 | ||||||||||||
% of total | 4 | % | 4 | % | 16 | % | 44 | % | 32 | % | 100 | % | ||||||||||||
Weighted-average debt-to-value | 61 | % | 62 | % | 63 | % | 60 | % | 44 | % | 56 | % | ||||||||||||
Derivative assets | Derivative liabilities | Derivative assets | Derivative liabilities | |||||||||||||||||||||||||||||||||||||||||
Balance sheet classification | Fair value | Balance sheet classification | Fair value | Balance sheet classification | Fair value | Balance sheet classification | Fair value | |||||||||||||||||||||||||||||||||||||
(Amounts in millions) | June 30, 2023 | December 31, 2022 | June 30, 2023 | December 31, 2022 | September 30, 2023 | December 31, 2022 | September 30, 2023 | December 31, 2022 | ||||||||||||||||||||||||||||||||||||
Derivatives designated as hedges | ||||||||||||||||||||||||||||||||||||||||||||
Cash flow hedges: | ||||||||||||||||||||||||||||||||||||||||||||
Interest rate swaps | Other invested assets | $ | 30 | $ | 24 | Other liabilities | $ | 472 | $ | 522 | Other invested assets | $ | 12 | $ | 24 | Other liabilities | $ | 884 | $ | 522 | ||||||||||||||||||||||||
Foreign currency swaps | Other invested assets | 16 | 20 | Other liabilities | 1 | — | Other invested assets | 15 | 20 | Other liabilities | 1 | — | ||||||||||||||||||||||||||||||||
Forward bond purchase commitments | Other invested assets | — | — | Other liabilities | 3 | — | ||||||||||||||||||||||||||||||||||||||
Total cash flow hedges | 46 | 44 | 473 | 522 | 27 | 44 | 888 | 522 | ||||||||||||||||||||||||||||||||||||
Total derivatives designated as hedges | 46 | 44 | 473 | 522 | 27 | 44 | 888 | 522 | ||||||||||||||||||||||||||||||||||||
Derivatives not designated as hedges | ||||||||||||||||||||||||||||||||||||||||||||
Equity index options | Other invested assets | 15 | 6 | Other liabilities | — | — | Other invested assets | 11 | 6 | Other liabilities | — | — | ||||||||||||||||||||||||||||||||
Financial futures (1) | Other invested assets | — | — | Other liabilities | — | — | Other invested assets | — | — | Other liabilities | — | — | ||||||||||||||||||||||||||||||||
Forward bond purchase commitments | Other invested assets | — | — | Other liabilities | 3 | — | Other invested assets | — | — | Other liabilities | 25 | — | ||||||||||||||||||||||||||||||||
Fixed indexed annuity embedded derivatives | Other assets | — | — | Policyholder account balances (2) | 180 | 202 | Other assets | — | — | Policyholder account balances (2) | 174 | 202 | ||||||||||||||||||||||||||||||||
Indexed universal life embedded derivatives | Reinsurance recoverable | — | — | Policyholder account balances (3) | 15 | 15 | Reinsurance recoverable | — | — | Policyholder account balances (3) | 14 | 15 | ||||||||||||||||||||||||||||||||
Total derivatives not designated as hedges | 15 | 6 | 198 | 217 | 11 | 6 | 213 | 217 | ||||||||||||||||||||||||||||||||||||
Total derivatives | $ | 61 | $ | 50 | $ | 671 | $ | 739 | $ | 38 | $ | 50 | $ | 1,101 | $ | 739 | ||||||||||||||||||||||||||||
(1) | The period end valuations of financial futures were zero as a result of settling the margins on these contracts on a daily basis. |
(2) | Represents the embedded derivatives associated with our fixed indexed annuity liabilities. |
(3) | Represents the embedded derivatives associated with our indexed universal life liabilities. |
(Notional in millions) | Measurement | December 31, 2022 | Additions | Maturities/ terminations | June 30, 2023 | |||||||||||||||
Derivatives designated as hedges | ||||||||||||||||||||
Cash flow hedges: | ||||||||||||||||||||
Interest rate swaps | Notional | $ | 8,542 | $ | 927 | $ | (115 | ) | $ | 9,354 | ||||||||||
Foreign currency swaps | Notional | 144 | — | (13 | ) | 131 | ||||||||||||||
Total cash flow hedges | 8,686 | 927 | (128 | ) | 9,485 | |||||||||||||||
Total derivatives designated as hedges | 8,686 | 927 | (128 | ) | 9,485 | |||||||||||||||
Derivatives not designated as hedges | ||||||||||||||||||||
Equity index options | Notional | 936 | 339 | (466 | ) | 809 | ||||||||||||||
Financial futures | Notional | 1,403 | 2,889 | (2,916 | ) | 1,376 | ||||||||||||||
Forward bond purchase commitments | Notional | — | 275 | — | 275 | |||||||||||||||
Total derivatives not designated as hedges | 2,339 | 3,503 | (3,382 | ) | 2,460 | |||||||||||||||
Total derivatives | $ | 11,025 | $ | 4,430 | $ | (3,510 | ) | $ | 11,945 | |||||||||||
(Number of policies) | Measurement | December 31, 2022 | Additions | Maturities/ terminations | June 30, 2023 | |||||||||||||||
Derivatives not designated as hedges | ||||||||||||||||||||
Fixed indexed annuity embedded derivatives | Policies | 7,315 | — | (848 | ) | 6,467 | ||||||||||||||
Indexed universal life embedded derivatives | Policies | 771 | — | (15 | ) | 756 |
(Notional in millions) | Measurement | December 31, 2022 | Additions | Maturities/ terminations | September 30, 2023 | |||||||||||||||
Derivatives designated as hedges | ||||||||||||||||||||
Cash flow hedges: | ||||||||||||||||||||
Interest rate swaps | Notional | $ | 8,542 | $ | 1,200 | $ | (261 | ) | $ | 9,481 | ||||||||||
Foreign currency swaps | Notional | 144 | — | (13 | ) | 131 | ||||||||||||||
Forward bond purchase commitments | Notional | — | 75 | — | 75 | |||||||||||||||
Total cash flow hedges | 8,686 | 1,275 | (274 | ) | 9,687 | |||||||||||||||
Total derivatives designated as hedges | 8,686 | 1,275 | (274 | ) | 9,687 | |||||||||||||||
Derivatives not designated as hedges | ||||||||||||||||||||
Equity index options | Notional | 936 | 513 | (682 | ) | 767 | ||||||||||||||
Financial futures | Notional | 1,403 | 4,216 | (4,351 | ) | 1,268 | ||||||||||||||
Forward bond purchase commitments | Notional | — | 500 | — | 500 | |||||||||||||||
Total derivatives not designated as hedges | 2,339 | 5,229 | (5,033 | ) | 2,535 | |||||||||||||||
Total derivatives | $ | 11,025 | $ | 6,504 | $ | (5,307 | ) | $ | 12,222 | |||||||||||
(Number of policies) | Measurement | December 31, 2022 | Additions | Maturities/ terminations | September 30, 2023 | |||||||||||||||
Derivatives not designated as hedges | ||||||||||||||||||||
Fixed indexed annuity embedded derivatives | Policies | 7,315 | — | (1,177 | ) | 6,138 | ||||||||||||||
Indexed universal life embedded derivatives | Policies | 771 | — | (22 | ) | 749 |
(Amounts in millions) | Gain (loss) recognized in OCI | Gain (loss) reclassified into net income from OCI | Classification of gain (loss) reclassified into net income | Gain (loss) recognized in net income | Classification of gain (loss) recognized in net income | |||||||||||||||
Interest rate swaps hedging assets | $ | (104 | ) | $ | 55 | Net investment income | $ | — | Net investment gains (losses) | |||||||||||
Interest rate swaps hedging assets | — | 3 | Net investment gains (losses) | — | Net investment gains (losses) | |||||||||||||||
Foreign currency swaps | (2 | ) | — | Net investment income | — | Net investment gains (losses) | ||||||||||||||
Total | $ | (106 | ) | $ | 58 | $ | — | |||||||||||||
(Amounts in millions) | Gain (loss) recognized in OCI | Gain (loss) reclassified into net income from OCI | Classification of gain (loss) reclassified into net income | Gain (loss) recognized in net income | Classification of gain (loss) recognized in net income | |||||||||||
Interest rate swaps hedging assets | $ | (453 | ) | $ | 56 | Net investment income | $ | — | Net investment gains (losses) | |||||||
Interest rate swaps hedging liabilities | — | (1 | ) | Interest expense | — | Net investment gains (losses) | ||||||||||
Forward bond purchase commitments | (3 | ) | — | Net investment gains (losses) | — | Net investment gains (losses) | ||||||||||
Foreign currency swaps | (1 | ) | — | Net investment income | — | Net investment gains (losses) | ||||||||||
Total | $ | (457 | ) | $ | 55 | $ | — | |||||||||
(Amounts in millions) | Gain (loss) recognized in OCI | Gain (loss) reclassified into net income from OCI | Classification of gain (loss) reclassified into net income | Gain (loss) recognized in net income | Classification of gain (loss) recognized in net income | |||||||||||
Interest rate swaps hedging assets | $ | (125 | ) | $ | 55 | Net investment income | $ | — | Net investment gains (losses) | |||||||
Interest rate swaps hedging assets | — | 3 | Net investment gains (losses) | — | Net investment gains (losses) | |||||||||||
Foreign currency swaps | 15 | — | Net investment income | — | Net investment gains (losses) | |||||||||||
Total | $ | (110 | ) | $ | 58 | $ | — | |||||||||
(Amounts in millions) | Gain (loss) recognized in OCI | Gain (loss) reclassified into net income from OCI | Classification of gain (loss) reclassified into net income | Gain (loss) recognized in net income | Classification of gain (loss) recognized in net income | |||||||||||||||
Interest rate swaps hedging assets | $ | (405 | ) | $ | 57 | Net investment income | $ | — | Net investment gains (losses) | |||||||||||
Interest rate swaps hedging liabilities | — | (1 | ) | Interest expense | — | Net investment gains (losses) | ||||||||||||||
Foreign currency swaps | 14 | — | Net investment income | — | Net investment gains (losses) | |||||||||||||||
Total | $ | (391 | ) | $ | 56 | $ | — | |||||||||||||
(Amounts in millions) | Gain (loss) recognized in OCI | Gain (loss) reclassified into net income from OCI | Classification of gain (loss) reclassified into net income | Gain (loss) recognized in net income | Classification of gain (loss) recognized in net income | |||||||||||||||
Interest rate swaps hedging assets | $ | 42 | $ | 109 | Net investment income | $ | — | Net investment gains (losses) | ||||||||||||
Interest rate swaps hedging assets | — | 8 | Net investment gains (losses) | — | Net investment gains (losses) | |||||||||||||||
Interest rate swaps hedging liabilities | — | (1 | ) | Interest expense | — | Net investment gains (losses) | ||||||||||||||
Interest rate swaps hedging liabilities | — | 1 | Net investment gains (losses) | — | Net investment gains (losses) | |||||||||||||||
Foreign currency swaps | (3 | ) | — | Net investment income | — | Net investment gains (losses) | ||||||||||||||
Foreign currency swaps | — | 2 | Net investment gains (losses) | — | Net investment gains (losses) | |||||||||||||||
Total | $ | 39 | $ | 119 | $ | — | ||||||||||||||
(Amounts in millions) | Gain (loss) recognized in OCI | Gain (loss) reclassified into net income from OCI | Classification of gain (loss) reclassified into net income | Gain (loss) recognized in net income | Classification of gain (loss) recognized in net income | |||||||||||
Interest rate swaps hedging assets | $ | (411 | ) | $ | 165 | Net investment income | $ | — | Net investment gains (losses) | |||||||
Interest rate swaps hedging assets | — | 8 | Net investment gains (losses) | — | Net investment gains (losses) | |||||||||||
Interest rate swaps hedging liabilities | — | (2 | ) | Interest expense | — | Net investment gains (losses) | ||||||||||
Interest rate swaps hedging liabilities | — | 1 | Net investment gains (losses) | — | Net investment gains (losses) | |||||||||||
Forward bond purchase commitments | (3 | ) | — | Net investment gains (losses) | — | Net investment gains (losses) | ||||||||||
Foreign currency swaps | (4 | ) | — | Net investment income | — | Net investment gains (losses) | ||||||||||
Foreign currency swaps | — | 2 | Net investment gains (losses) | — | Net investment gains (losses) | |||||||||||
Total | $ | (418 | ) | $ | 174 | $ | — | |||||||||
(Amounts in millions) | Gain (loss) recognized in OCI | Gain (loss) reclassified into net income from OCI | Classification of gain (loss) reclassified into net income | Gain (loss) recognized in net income | Classification of gain (loss) recognized in net income | |||||||||||||||
Interest rate swaps hedging assets | $ | (655 | ) | $ | 112 | Net investment income | $ | — | Net investment gains (losses) | |||||||||||
Interest rate swaps hedging assets | — | 2 | Net investment gains (losses) | — | Net investment gains (losses) | |||||||||||||||
Interest rate swaps hedging liabilities | — | (2 | ) | Interest expense | — | Net investment gains (losses) | ||||||||||||||
Foreign currency swaps | 12 | 1 | Net investment income | — | Net investment gains (losses) | |||||||||||||||
Total | $ | (643 | ) | $ | 113 | $ | — | |||||||||||||
(Amounts in millions) | Gain (loss) recognized in OCI | Gain (loss) reclassified into net income from OCI | Classification of gain (loss) reclassified into net income | Gain (loss) recognized in net income | Classification of gain (loss) recognized in net income | |||||||||||
Interest rate swaps hedging assets | $ | (780 | ) | $ | 167 | Net investment income | $ | — | Net investment gains (losses) | |||||||
Interest rate swaps hedging assets | — | 5 | Net investment gains (losses) | — | Net investment gains (losses) | |||||||||||
Interest rate swaps hedging liabilities | — | (2 | ) | Interest expense | — | Net investment gains (losses) | ||||||||||
Foreign currency swaps | 27 | 1 | Net investment income | — | Net investment gains (losses) | |||||||||||
Total | $ | (753 | ) | $ | 171 | $ | — | |||||||||
Three months ended June 30, | Six months ended June 30, | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||
(Amounts in millions) | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||
Beginning balance | $ | 1,274 | $ | 1,789 | $ | 1,200 | $ | 2,025 | $ | 1,154 | $ | 1,445 | $ | 1,200 | $ | 2,025 | ||||||||||||||||
Current period increases (decreases) in fair value, net of deferred taxes of $23, $84, $(8) and $137 | (83 | ) | (307 | ) | 31 | (506 | ) | |||||||||||||||||||||||||
Reclassification to net (income), net of deferred taxes of $21, $19, $42 and $39 | (37 | ) | (37 | ) | (77 | ) | (74 | ) | ||||||||||||||||||||||||
Current period increases (decreases) in fair value, net of deferred taxes of $67, $12, $59 and $149 | (390 | ) | (98 | ) | (359 | ) | (604 | ) | ||||||||||||||||||||||||
Reclassification to net (income), net of deferred taxes of $18, $21, $60 and $60 | (37 | ) | (37 | ) | (114 | ) | (111 | ) | ||||||||||||||||||||||||
Ending balance | $ | 1,154 | $ | 1,445 | $ | 1,154 | $ | 1,445 | $ | 727 | $ | 1,310 | $ | 727 | $ | 1,310 | ||||||||||||||||
Three months ended June 30, | Six months ended June 30, | Classification of gain (loss) recognized in net income | Three months ended September 30, | Nine months ended September 30, | Classification of gain (loss) recognized in net income | |||||||||||||||||||||||||||||||
(Amounts in millions) | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||
Equity index options | $ | 5 | $ | (1 | ) | $ | 6 | $ | (7 | ) | Net investment gains (losses) | $ | (4 | ) | $ | 5 | $ | 2 | $ | (2 | ) | Net investment gains (losses) | ||||||||||||||
Financial futures | (65 | ) | 17 | (67 | ) | (30 | ) | Changes in fair value of market risk benefits and associated hedges | (50 | ) | (34 | ) | (117 | ) | (64 | ) | Changes in fair value of market risk benefits and associated hedges | |||||||||||||||||||
Forward bond purchase commitments | (3 | ) | — | (3 | ) | — | Net investment gains (losses) | (22 | ) | — | (25 | ) | — | Net investment gains (losses) | ||||||||||||||||||||||
Fixed indexed annuity embedded derivatives | (8 | ) | 11 | (10 | ) | 23 | Net investment gains (losses) | (6 | ) | (5 | ) | (16 | ) | 18 | Net investment gains (losses) | |||||||||||||||||||||
Indexed universal life embedded derivatives | 2 | 8 | 7 | 19 | Net investment gains (losses) | 4 | 4 | 11 | 23 | Net investment gains (losses) | ||||||||||||||||||||||||||
Total derivatives not designated as hedges | $ | (69 | ) | $ | 35 | $ | (67 | ) | $ | 5 | $ | (78 | ) | $ | (30 | ) | $ | (145 | ) | $ | (25 | ) | ||||||||||||||
June 30, 2023 | December 31, 2022 | |||||||||||||||||||||||
(Amounts in millions) | Derivative assets (1) | Derivative liabilities (1) | Net derivatives | Derivative assets (1) | Derivative liabilities (1) | Net derivatives | ||||||||||||||||||
Amounts presented in the balance sheet: | ||||||||||||||||||||||||
Gross amounts recognized | $ | 61 | $ | 476 | $ | (415 | ) | $ | 50 | $ | 522 | $ | (472 | ) | ||||||||||
Gross amounts offset in the balance sheet | — | — | — | — | — | — | ||||||||||||||||||
Net amounts presented in the balance sheet | 61 | 476 | (415 | ) | 50 | 522 | (472 | ) | ||||||||||||||||
Gross amounts not offset in the balance sheet: | ||||||||||||||||||||||||
Financial instruments (2) | (25 | ) | (25 | ) | — | (25 | ) | (25 | ) | — | ||||||||||||||
Collateral received | (25 | ) | — | (25 | ) | (21 | ) | — | (21 | ) | ||||||||||||||
Collateral pledged | — | (1,109 | ) | 1,109 | — | (1,095 | ) | 1,095 | ||||||||||||||||
Over collateralization | — | 658 | (658 | ) | — | 598 | (598 | ) | ||||||||||||||||
Net amount | $ | 11 | $ | — | $ | 11 | $ | 4 | $ | — | $ | 4 | ||||||||||||
September 30, 2023 | December 31, 2022 | |||||||||||||||||||||||
(Amounts in millions) | Derivative assets (1) | Derivative liabilities (1) | Net derivatives | Derivative assets (1) | Derivative liabilities (1) | Net derivatives | ||||||||||||||||||
Amounts presented in the balance sheet: | ||||||||||||||||||||||||
Gross amounts recognized | $ | 38 | $ | 913 | $ | (875 | ) | $ | 50 | $ | 522 | $ | (472 | ) | ||||||||||
Gross amounts offset in the balance sheet | — | — | — | — | — | — | ||||||||||||||||||
Net amounts presented in the balance sheet | 38 | 913 | (875 | ) | 50 | 522 | (472 | ) | ||||||||||||||||
Gross amounts not offset in the balance sheet: | ||||||||||||||||||||||||
Financial instruments (2) | (15 | ) | (15 | ) | — | (25 | ) | (25 | ) | — | ||||||||||||||
Collateral received | (15 | ) | — | (15 | ) | (21 | ) | — | (21 | ) | ||||||||||||||
Collateral pledged | — | (1,516 | ) | 1,516 | — | (1,095 | ) | 1,095 | ||||||||||||||||
Over collateralization | — | 618 | (618 | ) | — | 598 | (598 | ) | ||||||||||||||||
Net amount | $ | 8 | $ | — | $ | 8 | $ | 4 | $ | — | $ | 4 | ||||||||||||
(1) | Does not include amounts related to embedded derivatives as of |
(2) | Amounts represent derivative assets and/or liabilities that are presented gross within the balance sheet but are held with the same counterparty where we have a master netting arrangement. This adjustment results in presenting the net asset and net liability position for each counterparty. |
(Amounts in millions) | Fair value | Primary methodologies | Significant inputs | |||||
U.S. government, agencies and government-sponsored enterprises | $ | 3,112 | Price quotes from trading desk, broker feeds | Bid side prices, trade prices, Option Adjusted Spread (“OAS”) to swap curve, Bond Market Association OAS, Treasury Curve, Agency Bullet Curve, maturity to issuer spread | ||||
State and political subdivisions | $ | 2,108 | Multi-dimensional attribute-based modeling systems, third-party pricing vendors | Trade prices, material event notices, Municipal Market Data benchmark yields, broker quotes | ||||
Non-U.S. government | $ | 582 | Matrix pricing, spread priced to benchmark curves, price quotes from market makers | Benchmark yields, trade prices, broker quotes, comparative transactions, issuer spreads, bid-offer spread, market research publications, third-party pricing sources | ||||
U.S. corporate | $ | 22,508 | Multi-dimensional attribute-based modeling systems, broker quotes, price quotes from market makers, OAS-based models | Bid side prices to Treasury Curve, Issuer Curve, which includes sector, quality, duration, OAS percentage and change for spread matrix, trade prices, comparative transactions, Trade Reporting and Compliance Engine (“TRACE”) reports | ||||
Non-U.S. corporate | $ | 5,976 | Multi-dimensional attribute-based modeling systems, OAS-based models, price quotes from market makers | Benchmark yields, trade prices, broker quotes, comparative transactions, issuer spreads, bid-offer spread, market research publications, third-party pricing sources | ||||
Residential mortgage- backed | $ | 888 | OAS-based models, single factor binomial models, internally priced | Prepayment and default assumptions, aggregation of bonds with similar characteristics, including collateral type, vintage, tranche type, weighted-average life, weighted-average loan age, issuer program and delinquency ratio, pay up and pay down factors, TRACE reports | ||||
Commercial mortgage- backed | $ | 1,493 | Multi-dimensional attribute-based modeling systems, pricing matrix, spread matrix priced to swap curves, Trepp commercial mortgage-backed securities analytics model | Credit risk, interest rate risk, prepayment speeds, new issue data, collateral performance, origination year, tranche type, original credit ratings, weighted-average life, cash flows, spreads derived from broker quotes, bid side prices, spreads to daily updated swaps curves, TRACE reports | ||||
Other asset-backed | $ | 2,109 | Multi-dimensional attribute-based modeling systems, spread matrix priced to swap curves, price quotes from market makers | Spreads to daily updated swap curves, spreads derived from trade prices and broker quotes, bid side prices, new issue data, collateral performance, analysis of prepayment speeds, cash flows, collateral loss analytics, historical issue analysis, trade data from market makers, TRACE reports |
June 30, 2023 | ||||||||||||||||||||
(Amounts in millions) | Total | Level 1 | Level 2 | Level 3 | NAV (1) | |||||||||||||||
Assets | ||||||||||||||||||||
Investments: | ||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||
U.S. government, agencies and government-sponsored enterprises | $ | 3,389 | $ | — | $ | 3,389 | $ | — | $ | — | ||||||||||
State and political subdivisions | 2,343 | — | 2,283 | 60 | — | |||||||||||||||
Non-U.S. government | 625 | — | 625 | — | — | |||||||||||||||
U.S. corporate: | ||||||||||||||||||||
Utilities | 3,964 | — | 3,146 | 818 | — | |||||||||||||||
Energy | 2,248 | — | 2,189 | 59 | — | |||||||||||||||
Finance and insurance | 7,126 | — | 6,422 | 704 | — | |||||||||||||||
Consumer—non-cyclical | 4,410 | — | 4,342 | 68 | — | |||||||||||||||
Technology and communications | 2,934 | — | 2,923 | 11 | — | |||||||||||||||
Industrial | 1,224 | — | 1,202 | 22 | — | |||||||||||||||
Capital goods | 2,107 | — | 2,073 | 34 | — | |||||||||||||||
Consumer—cyclical | 1,614 | — | 1,490 | 124 | — | |||||||||||||||
Transportation | 1,117 | — | 1,094 | 23 | — | |||||||||||||||
Other | 299 | — | 146 | 153 | — | |||||||||||||||
Total U.S. corporate | 27,043 | — | 25,027 | 2,016 | — | |||||||||||||||
Non-U.S. corporate: | ||||||||||||||||||||
Utilities | 735 | — | 415 | 320 | — | |||||||||||||||
Energy | 1,002 | — | 885 | 117 | — | |||||||||||||||
Finance and insurance | 1,899 | — | 1,773 | 126 | — | |||||||||||||||
Consumer—non-cyclical | 592 | — | 519 | 73 | — | |||||||||||||||
Technology and communications | 891 | — | 865 | 26 | — | |||||||||||||||
Industrial | 782 | — | 707 | 75 | — | |||||||||||||||
Capital goods | 555 | — | 504 | 51 | — | |||||||||||||||
Consumer—cyclical | 217 | — | 208 | 9 | — | |||||||||||||||
Transportation | 346 | — | 325 | 21 | — | |||||||||||||||
Other | 819 | — | 798 | 21 | — | |||||||||||||||
Total non-U.S. corporate | 7,838 | — | 6,999 | 839 | — | |||||||||||||||
Residential mortgage-backed | 934 | — | 926 | 8 | — | |||||||||||||||
Commercial mortgage-backed | 1,690 | — | 1,679 | 11 | — | |||||||||||||||
Other asset-backed | 2,208 | — | 2,104 | 104 | — | |||||||||||||||
Total fixed maturity securities | 46,070 | — | 43,032 | 3,038 | — | |||||||||||||||
Equity securities | 378 | 307 | 41 | 30 | — | |||||||||||||||
Limited partnerships | 2,003 | — | — | 21 | 1,982 | |||||||||||||||
Other invested assets: | ||||||||||||||||||||
Derivative assets: | ||||||||||||||||||||
Interest rate swaps | 30 | — | 30 | — | — | |||||||||||||||
Foreign currency swaps | 16 | — | 16 | — | — | |||||||||||||||
Equity index options | 15 | — | — | 15 | — | |||||||||||||||
Total derivative assets | 61 | — | 46 | 15 | — | |||||||||||||||
Short-term investments | 23 | — | 16 | 7 | — | |||||||||||||||
Total other invested assets | 84 | — | 62 | 22 | — | |||||||||||||||
Separate account assets | 4,533 | 4,533 | — | — | — | |||||||||||||||
Total assets | $ | 53,068 | $ | 4,840 | $ | 43,135 | $ | 3,111 | $ | 1,982 | ||||||||||
September 30, 2023 | ||||||||||||||||||||
(Amounts in millions) | Total | Level 1 | Level 2 | Level 3 | NAV (1) | |||||||||||||||
Assets | ||||||||||||||||||||
Investments: | ||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||
U.S. government, agencies and government-sponsored enterprises | $ | 3,112 | $ | — | $ | 3,112 | $ | — | $ | — | ||||||||||
State and political subdivisions | 2,164 | — | 2,108 | 56 | — | |||||||||||||||
Non-U.S. government | 583 | — | 582 | 1 | — | |||||||||||||||
U.S. corporate: | ||||||||||||||||||||
Utilities | 3,856 | — | 3,068 | 788 | — | |||||||||||||||
Energy | 2,207 | — | 2,150 | 57 | — | |||||||||||||||
Finance and insurance | 6,873 | — | 6,171 | 702 | — | |||||||||||||||
Consumer—non-cyclical | 4,126 | — | 4,060 | 66 | — | |||||||||||||||
Technology and communications | 2,794 | — | 2,783 | 11 | — | |||||||||||||||
Industrial | 1,149 | — | 1,127 | 22 | — | |||||||||||||||
Capital goods | 2,039 | — | 2,006 | 33 | — | |||||||||||||||
Consumer—cyclical | 1,548 | — | 1,428 | 120 | — | |||||||||||||||
Transportation | 1,066 | — | 1,044 | 22 | — | |||||||||||||||
Other | 298 | — | 150 | 148 | — | |||||||||||||||
Total U.S. corporate | 25,956 | — | 23,987 | 1,969 | — | |||||||||||||||
Non-U.S. corporate: | ||||||||||||||||||||
Utilities | 719 | — | 413 | 306 | — | |||||||||||||||
Energy | 978 | — | 852 | 126 | — | |||||||||||||||
Finance and insurance | 1,844 | — | 1,722 | 122 | — | |||||||||||||||
Consumer—non-cyclical | 582 | — | 510 | 72 | — | |||||||||||||||
Technology and communications | 840 | — | 817 | 23 | — | |||||||||||||||
Industrial | 769 | — | 711 | 58 | — | |||||||||||||||
Capital goods | 524 | — | 473 | 51 | — | |||||||||||||||
Consumer—cyclical | 211 | — | 202 | 9 | — | |||||||||||||||
Transportation | 334 | — | 313 | 21 | — | |||||||||||||||
Other | 753 | — | 732 | 21 | — | |||||||||||||||
Total non-U.S. corporate | 7,554 | — | 6,745 | 809 | — | |||||||||||||||
Residential mortgage-backed | 891 | — | 888 | 3 | — | |||||||||||||||
Commercial mortgage-backed | 1,503 | — | 1,493 | 10 | — | |||||||||||||||
Other asset-backed | 2,205 | — | 2,109 | 96 | — | |||||||||||||||
Total fixed maturity securities | 43,968 | — | 41,024 | 2,944 | — | |||||||||||||||
Equity securities | 363 | 290 | 41 | 32 | — | |||||||||||||||
Limited partnerships | 2,096 | — | — | 20 | 2,076 | |||||||||||||||
Other invested assets: | ||||||||||||||||||||
Derivative assets: | ||||||||||||||||||||
Interest rate swaps | 12 | — | 12 | — | — | |||||||||||||||
Foreign currency swaps | 15 | — | 15 | — | — | |||||||||||||||
Equity index options | 11 | — | — | 11 | — | |||||||||||||||
Total derivative assets | 38 | — | 27 | 11 | — | |||||||||||||||
Short-term investments | 30 | — | 23 | 7 | — | |||||||||||||||
Total other invested assets | 68 | — | 50 | 18 | — | |||||||||||||||
Separate account assets | 4,244 | 4,244 | — | — | — | |||||||||||||||
Total assets | $ | 50,739 | $ | 4,534 | $ | 41,115 | $ | 3,014 | $ | 2,076 | ||||||||||
(1) | Limited partnerships that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy. |
December 31, 2022 | ||||||||||||||||||||
(Amounts in millions) | Total | Level 1 | Level 2 | Level 3 | NAV (1) | |||||||||||||||
Assets | ||||||||||||||||||||
Investments: | ||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||
U.S. government, agencies and government-sponsored enterprises | $ | 3,341 | $ | — | $ | 3,341 | $ | — | $ | — | ||||||||||
State and political subdivisions | 2,399 | — | 2,344 | 55 | — | |||||||||||||||
Non-U.S. government | 645 | — | 645 | — | — | |||||||||||||||
U.S. corporate: | ||||||||||||||||||||
Utilities | 3,898 | — | 3,056 | 842 | — | |||||||||||||||
Energy | 2,262 | — | 2,146 | 116 | — | |||||||||||||||
Finance and insurance | 7,193 | — | 6,506 | 687 | — | |||||||||||||||
Consumer—non-cyclical | 4,457 | — | 4,375 | 82 | — | |||||||||||||||
Technology and communications | 2,947 | — | 2,923 | 24 | — | |||||||||||||||
Industrial | 1,197 | — | 1,175 | 22 | — | |||||||||||||||
Capital goods | 2,138 | — | 2,104 | 34 | — | |||||||||||||||
Consumer—cyclical | 1,617 | — | 1,504 | 113 | — | |||||||||||||||
Transportation | 1,100 | — | 1,057 | 43 | — | |||||||||||||||
Other | 310 | — | 151 | 159 | — | |||||||||||||||
Total U.S. corporate | 27,119 | — | 24,997 | 2,122 | — | |||||||||||||||
Non-U.S. corporate: | ||||||||||||||||||||
Utilities | 740 | — | 445 | 295 | — | |||||||||||||||
Energy | 960 | — | 842 | 118 | — | |||||||||||||||
Finance and insurance | 1,946 | — | 1,821 | 125 | — | |||||||||||||||
Consumer—non-cyclical | 566 | — | 493 | 73 | — | |||||||||||||||
Technology and communications | 894 | — | 868 | 26 | — | |||||||||||||||
Industrial | 818 | — | 770 | 48 | — | |||||||||||||||
Capital goods | 546 | — | 451 | 95 | — | |||||||||||||||
Consumer—cyclical | 276 | — | 212 | 64 | — | |||||||||||||||
Transportation | 375 | — | 355 | 20 | — | |||||||||||||||
Other | 889 | — | 868 | 21 | — | |||||||||||||||
Total non-U.S. corporate | 8,010 | — | 7,125 | 885 | — | |||||||||||||||
Residential mortgage-backed | 995 | — | 973 | 22 | — | |||||||||||||||
Commercial mortgage-backed | 1,908 | — | 1,896 | 12 | — | |||||||||||||||
Other asset-backed | 2,166 | — | 2,072 | 94 | — | |||||||||||||||
Total fixed maturity securities | 46,583 | — | 43,393 | 3,190 | — | |||||||||||||||
Equity securities | 319 | 239 | 46 | 34 | — | |||||||||||||||
Limited partnerships | 1,816 | — | — | 24 | 1,792 | |||||||||||||||
Other invested assets: | ||||||||||||||||||||
Derivative assets: | ||||||||||||||||||||
Interest rate swaps | 24 | — | 24 | — | — | |||||||||||||||
Foreign currency swaps | 20 | — | 20 | — | — | |||||||||||||||
Equity index options | 6 | — | — | 6 | — | |||||||||||||||
Total derivative assets | 50 | — | 44 | 6 | — | |||||||||||||||
Short-term investments | 3 | — | 3 | — | — | |||||||||||||||
Total other invested assets | 53 | — | 47 | 6 | — | |||||||||||||||
Separate account assets | 4,417 | 4,417 | — | — | — | |||||||||||||||
Total assets | $ | 53,188 | $ | 4,656 | $ | 43,486 | $ | 3,254 | $ | 1,792 | ||||||||||
December 31, 2022 | ||||||||||||||||||||
(Amounts in millions) | Total | Level 1 | Level 2 | Level 3 | NAV (1) | |||||||||||||||
Assets | ||||||||||||||||||||
Investments: | ||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||
U.S. government, agencies and government-sponsored enterprises | $ | 3,341 | $ | — | $ | 3,341 | $ | — | $ | — | ||||||||||
State and political subdivisions | 2,399 | — | 2,344 | 55 | — | |||||||||||||||
Non-U.S. government | 645 | — | 645 | — | — | |||||||||||||||
U.S. corporate: | ||||||||||||||||||||
Utilities | 3,898 | — | 3,056 | 842 | — | |||||||||||||||
Energy | 2,262 | — | 2,146 | 116 | — | |||||||||||||||
Finance and insurance | 7,193 | — | 6,506 | 687 | — | |||||||||||||||
Consumer—non-cyclical | 4,457 | — | 4,375 | 82 | — | |||||||||||||||
Technology and communications | 2,947 | — | 2,923 | 24 | — | |||||||||||||||
Industrial | 1,197 | — | 1,175 | 22 | — | |||||||||||||||
Capital goods | 2,138 | — | 2,104 | 34 | — | |||||||||||||||
Consumer—cyclical | 1,617 | — | 1,504 | 113 | — | |||||||||||||||
Transportation | 1,100 | — | 1,057 | 43 | — | |||||||||||||||
Other | 310 | — | 151 | 159 | — | |||||||||||||||
Total U.S. corporate | 27,119 | — | 24,997 | 2,122 | — | |||||||||||||||
Non-U.S. corporate: | ||||||||||||||||||||
Utilities | 740 | — | 445 | 295 | — | |||||||||||||||
Energy | 960 | — | 842 | 118 | — | |||||||||||||||
Finance and insurance | 1,946 | — | 1,821 | 125 | — | |||||||||||||||
Consumer—non-cyclical | 566 | — | 493 | 73 | — | |||||||||||||||
Technology and communications | 894 | — | 868 | 26 | — | |||||||||||||||
Industrial | 818 | — | 770 | 48 | — | |||||||||||||||
Capital goods | 546 | — | 451 | 95 | — | |||||||||||||||
Consumer—cyclical | 276 | — | 212 | 64 | — | |||||||||||||||
Transportation | 375 | — | 355 | 20 | — | |||||||||||||||
Other | 889 | — | 868 | 21 | — | |||||||||||||||
Total non-U.S. corporate | 8,010 | — | 7,125 | 885 | — | |||||||||||||||
Residential mortgage-backed | 995 | — | 973 | 22 | — | |||||||||||||||
Commercial mortgage-backed | 1,908 | — | 1,896 | 12 | — | |||||||||||||||
Other asset-backed | 2,166 | — | 2,072 | 94 | — | |||||||||||||||
Total fixed maturity securities | 46,583 | — | 43,393 | 3,190 | — | |||||||||||||||
Equity securities | 319 | 239 | 46 | 34 | — | |||||||||||||||
Limited partnerships | 1,816 | — | — | 24 | 1,792 | |||||||||||||||
Other invested assets: | ||||||||||||||||||||
Derivative assets: | ||||||||||||||||||||
Interest rate swaps | 24 | — | 24 | — | — | |||||||||||||||
Foreign currency swaps | 20 | — | 20 | — | — | |||||||||||||||
Equity index options | 6 | — | — | 6 | — | |||||||||||||||
Total derivative assets | 50 | — | 44 | 6 | — | |||||||||||||||
Short-term investments | 3 | — | 3 | — | — | |||||||||||||||
Total other invested assets | 53 | — | 47 | 6 | — | |||||||||||||||
Separate account assets | 4,417 | 4,417 | — | — | — | |||||||||||||||
Total assets | $ | 53,188 | $ | 4,656 | $ | 43,486 | $ | 3,254 | $ | 1,792 | ||||||||||
(1) | Limited partnerships that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy. |
Beginning balance as of April 1, 2023 | Total realized and unrealized gains (losses) | Purchases | Sales | Issuances | Settlements | Transfer into Level 3 (1) | Transfer out of Level 3 (1) | Ending balance as of June 30, 2023 | Total gains (losses) attributable to assets still held | |||||||||||||||||||||||||||||||||||||||
(Amounts in millions) | Included in net income | Included in OCI | Included in net income | Included in OCI | ||||||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||||||||||||||||||||||||||
State and political subdivisions | $ | 59 | $ | 1 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 60 | $ | 1 | $ | — | ||||||||||||||||||||||||
U.S. corporate: | ||||||||||||||||||||||||||||||||||||||||||||||||
Utilities | 859 | — | (11 | ) | — | (31 | ) | — | (10 | ) | 11 | — | 818 | — | (18 | ) | ||||||||||||||||||||||||||||||||
Energy | 115 | — | — | — | — | — | (1 | ) | — | (55 | ) | 59 | — | (1 | ) | |||||||||||||||||||||||||||||||||
Finance and insurance | 697 | — | (6 | ) | 48 | — | — | (30 | ) | — | (5 | ) | 704 | — | (10 | ) | ||||||||||||||||||||||||||||||||
Consumer—non-cyclical | 69 | — | (1 | ) | — | — | — | — | — | — | 68 | — | (1 | ) | ||||||||||||||||||||||||||||||||||
Technology and communications | 12 | — | (1 | ) | — | — | — | — | — | — | 11 | — | — | |||||||||||||||||||||||||||||||||||
Industrial | 22 | — | — | — | — | — | — | — | — | 22 | — | — | ||||||||||||||||||||||||||||||||||||
Capital goods | 34 | — | — | — | — | — | — | — | — | 34 | — | (1 | ) | |||||||||||||||||||||||||||||||||||
Consumer—cyclical | 127 | — | (2 | ) | 1 | — | — | (2 | ) | — | — | 124 | — | (2 | ) | |||||||||||||||||||||||||||||||||
Transportation | 24 | — | (1 | ) | — | — | — | — | — | — | 23 | — | — | |||||||||||||||||||||||||||||||||||
Other | 156 | — | 1 | — | — | — | (4 | ) | — | — | 153 | — | 1 | |||||||||||||||||||||||||||||||||||
Total U.S. corporate | 2,115 | — | (21 | ) | 49 | (31 | ) | — | (47 | ) | 11 | (60 | ) | 2,016 | — | (32 | ) | |||||||||||||||||||||||||||||||
Non-U.S. corporate: | ||||||||||||||||||||||||||||||||||||||||||||||||
Utilities | 298 | — | (9 | ) | 1 | — | — | — | 30 | — | 320 | — | (8 | ) | ||||||||||||||||||||||||||||||||||
Energy | 119 | — | (2 | ) | — | — | — | — | — | — | 117 | — | (2 | ) | ||||||||||||||||||||||||||||||||||
Finance and insurance | 131 | 2 | (7 | ) | — | — | — | — | — | — | 126 | 2 | (6 | ) | ||||||||||||||||||||||||||||||||||
Consumer—non-cyclical | 73 | — | — | — | — | — | — | — | — | 73 | — | (1 | ) | |||||||||||||||||||||||||||||||||||
Technology and communications | 26 | — | — | — | — | — | — | — | — | 26 | — | — | ||||||||||||||||||||||||||||||||||||
Industrial | 75 | — | — | — | — | — | — | — | — | 75 | — | (1 | ) | |||||||||||||||||||||||||||||||||||
Capital goods | 52 | — | (1 | ) | — | — | — | — | — | — | 51 | — | — | |||||||||||||||||||||||||||||||||||
Consumer—cyclical | 9 | — | 1 | — | — | — | (1 | ) | — | — | 9 | — | — | |||||||||||||||||||||||||||||||||||
Transportation | 22 | — | (1 | ) | — | — | — | — | — | — | 21 | — | (1 | ) | ||||||||||||||||||||||||||||||||||
Other | 22 | — | (1 | ) | — | — | — | — | — | — | 21 | — | — | |||||||||||||||||||||||||||||||||||
Total non-U.S. corporate | 827 | 2 | (20 | ) | 1 | — | — | (1 | ) | 30 | — | 839 | 2 | (19 | ) | |||||||||||||||||||||||||||||||||
Residential mortgage-backed | 8 | — | 1 | — | — | — | (1 | ) | — | — | 8 | — | — | |||||||||||||||||||||||||||||||||||
Commercial mortgage-backed | 12 | — | — | — | (1 | ) | — | — | — | — | 11 | — | — | |||||||||||||||||||||||||||||||||||
Other asset-backed | 95 | — | (1 | ) | 10 | — | — | — | — | — | 104 | — | (1 | ) | ||||||||||||||||||||||||||||||||||
Total fixed maturity securities | 3,116 | 3 | (41 | ) | 60 | (32 | ) | — | (49 | ) | 41 | (60 | ) | 3,038 | 3 | (52 | ) | |||||||||||||||||||||||||||||||
Equity securities | 33 | — | — | 1 | (4 | ) | — | — | — | — | 30 | — | — | |||||||||||||||||||||||||||||||||||
Limited partnerships | 22 | (1 | ) | — | — | — | — | — | — | — | 21 | (1 | ) | — | ||||||||||||||||||||||||||||||||||
Other invested assets: | ||||||||||||||||||||||||||||||||||||||||||||||||
Derivative assets: | ||||||||||||||||||||||||||||||||||||||||||||||||
Equity index options | 10 | 5 | — | 2 | — | — | (2 | ) | — | — | 15 | 4 | — | |||||||||||||||||||||||||||||||||||
Total derivative assets | 10 | 5 | — | 2 | — | — | (2 | ) | — | — | 15 | 4 | — | |||||||||||||||||||||||||||||||||||
Short-term investments | — | — | — | 7 | — | — | — | — | — | 7 | — | — | ||||||||||||||||||||||||||||||||||||
Total other invested assets | 10 | 5 | — | 9 | — | — | (2 | ) | — | — | 22 | 4 | — | |||||||||||||||||||||||||||||||||||
Total Level 3 assets | $ | 3,181 | $ | 7 | $ | (41 | ) | $ | 70 | $ | (36 | ) | $ | — | $ | (51 | ) | $ | 41 | $ | (60 | ) | $ | 3,111 | $ | 6 | $ | (52 | ) | |||||||||||||||||||
Beginning balance as of July 1, 2023 | Total realized and unrealized gains (losses) | Transfer into Level 3 (1) | Transfer out of Level 3 (1) | Ending balance as of September 30, 2023 | Total gains (losses) attributable to assets still held | |||||||||||||||||||||||||||||||||||||||||||
(Amounts in millions) | Included in net income | Included in OCI | Purchases | Sales | Issuances | Settlements | Included in net income | Included in OCI | ||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||||||||||||||||||||||||||
State and political subdivisions | $ | 60 | $ | 1 | $ | (5 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 56 | $ | 1 | $ | (5 | ) | ||||||||||||||||||||||
Non-U.S. government | — | — | — | — | — | — | — | 1 | — | 1 | — | — | ||||||||||||||||||||||||||||||||||||
U.S. corporate: | ||||||||||||||||||||||||||||||||||||||||||||||||
Utilities | 818 | — | (42 | ) | 23 | — | — | — | — | (11 | ) | 788 | — | (42 | ) | |||||||||||||||||||||||||||||||||
Energy | 59 | — | (1 | ) | — | — | — | (1 | ) | — | — | 57 | — | (1 | ) | |||||||||||||||||||||||||||||||||
Finance and insurance | 704 | — | (17 | ) | 29 | — | — | (7 | ) | — | (7 | ) | 702 | — | (16 | ) | ||||||||||||||||||||||||||||||||
Consumer—non-cyclical | 68 | — | (1 | ) | — | — | — | (1 | ) | — | — | 66 | — | (1 | ) | |||||||||||||||||||||||||||||||||
Technology and communications | 11 | — | — | — | — | — | — | — | — | 11 | — | — | ||||||||||||||||||||||||||||||||||||
Industrial | 22 | — | — | — | — | — | — | — | — | 22 | — | — | ||||||||||||||||||||||||||||||||||||
Capital goods | 34 | — | (1 | ) | — | — | — | — | — | — | 33 | — | (1 | ) | ||||||||||||||||||||||||||||||||||
Consumer—cyclical | 124 | — | (2 | ) | — | — | — | (2 | ) | — | — | 120 | — | (2 | ) | |||||||||||||||||||||||||||||||||
Transportation | 23 | — | — | — | — | — | (1 | ) | — | — | 22 | — | — | |||||||||||||||||||||||||||||||||||
Other | 153 | — | (4 | ) | — | — | — | (1 | ) | — | — | 148 | — | (4 | ) | |||||||||||||||||||||||||||||||||
Total U.S. corporate | 2,016 | — | (68 | ) | 52 | — | — | (13 | ) | — | (18 | ) | 1,969 | — | (67 | ) | ||||||||||||||||||||||||||||||||
Non-U.S. corporate: | ||||||||||||||||||||||||||||||||||||||||||||||||
Utilities | 320 | — | (6 | ) | — | — | — | — | — | (8 | ) | 306 | — | (7 | ) | |||||||||||||||||||||||||||||||||
Energy | 117 | — | (2 | ) | — | — | — | — | 11 | — | 126 | — | (3 | ) | ||||||||||||||||||||||||||||||||||
Finance and insurance | 126 | 1 | (5 | ) | — | — | — | — | — | — | 122 | 1 | (5 | ) | ||||||||||||||||||||||||||||||||||
Consumer—non-cyclical | 73 | — | (1 | ) | — | — | — | — | — | — | 72 | — | (1 | ) | ||||||||||||||||||||||||||||||||||
Technology and communications | 26 | — | — | — | — | — | (3 | ) | — | — | 23 | — | — | |||||||||||||||||||||||||||||||||||
Industrial | 75 | — | (3 | ) | — | — | — | (15 | ) | 1 | — | 58 | — | (2 | ) | |||||||||||||||||||||||||||||||||
Capital goods | 51 | — | — | — | — | — | — | — | — | 51 | — | (1 | ) | |||||||||||||||||||||||||||||||||||
Consumer—cyclical | 9 | — | — | — | — | — | — | — | — | 9 | — | 1 | ||||||||||||||||||||||||||||||||||||
Transportation | 21 | — | — | — | — | — | — | — | — | 21 | — | — | ||||||||||||||||||||||||||||||||||||
Other | 21 | — | — | — | — | — | — | — | — | 21 | — | — | ||||||||||||||||||||||||||||||||||||
Total non-U.S. corporate | 839 | 1 | (17 | ) | — | — | — | (18 | ) | 12 | (8 | ) | 809 | 1 | (18 | ) | ||||||||||||||||||||||||||||||||
Residential mortgage-backed | 8 | — | (1 | ) | — | — | — | — | — | (4 | ) | 3 | — | — | ||||||||||||||||||||||||||||||||||
Commercial mortgage-backed | 11 | — | (1 | ) | — | — | — | — | — | — | 10 | — | (1 | ) | ||||||||||||||||||||||||||||||||||
Other asset-backed | 104 | — | (1 | ) | 4 | — | — | (1 | ) | — | (10 | ) | 96 | — | (1 | ) | ||||||||||||||||||||||||||||||||
Total fixed maturity securities | 3,038 | 2 | (93 | ) | 56 | — | — | (32 | ) | 13 | (40 | ) | 2,944 | 2 | (92 | ) | ||||||||||||||||||||||||||||||||
Equity securities | 30 | — | — | 4 | (2 | ) | — | — | — | — | 32 | — | — | |||||||||||||||||||||||||||||||||||
Limited partnerships | 21 | — | — | — | — | — | (1 | ) | — | — | 20 | — | — | |||||||||||||||||||||||||||||||||||
Other invested assets: | ||||||||||||||||||||||||||||||||||||||||||||||||
Derivative assets: | ||||||||||||||||||||||||||||||||||||||||||||||||
Equity index options | 15 | (4 | ) | — | 3 | — | — | (3 | ) | — | — | 11 | (4 | ) | — | |||||||||||||||||||||||||||||||||
Total derivative assets | 15 | (4 | ) | — | 3 | — | — | (3 | ) | — | — | 11 | (4 | ) | — | |||||||||||||||||||||||||||||||||
Short-term investments | 7 | — | — | — | — | — | — | — | — | 7 | — | — | ||||||||||||||||||||||||||||||||||||
Total other invested assets | 22 | (4 | ) | — | 3 | — | — | (3 | ) | — | — | 18 | (4 | ) | — | |||||||||||||||||||||||||||||||||
Total Level 3 assets | $ | 3,111 | $ | (2 | ) | $ | (93 | ) | $ | 63 | $ | (2 | ) | $ | — | $ | (36 | ) | $ | 13 | $ | (40 | ) | $ | 3,014 | $ | (2 | ) | $ | (92 | ) | |||||||||||||||||
(1) | The transfers into and out of Level 3 for fixed maturity securities were related to changes in the primary pricing source and changes in the observability of external information used in determining the fair value, such as external ratings or credit spreads, as well as changes in the industry sectors assigned to specific securities. |
Beginning balance as of April 1, 2022 | Total realized and unrealized gains (losses) | Transfer into Level 3 (1) | Transfer out of Level 3 (1) | Ending balance as of June 30, 2022 | Total gains (losses) attributable to assets still held | |||||||||||||||||||||||||||||||||||||||||||
(Amounts in millions) | Included in net income | Included in OCI | Purchases | Sales | Issuances | Settlements | Included in net income | Included in OCI | ||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||||||||||||||||||||||||||
State and political subdivisions | $ | 71 | $ | 1 | $ | (9 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 63 | $ | 1 | $ | (9 | ) | ||||||||||||||||||||||
Non-U.S. government | 1 | — | — | 2 | — | — | — | — | — | 3 | — | — | ||||||||||||||||||||||||||||||||||||
U.S. corporate: | ||||||||||||||||||||||||||||||||||||||||||||||||
Utilities | 912 | — | (92 | ) | — | — | — | (1 | ) | 2 | (11 | ) | 810 | — | (92 | ) | ||||||||||||||||||||||||||||||||
Energy | 72 | — | (11 | ) | — | — | — | (7 | ) | 68 | — | 122 | — | (11 | ) | |||||||||||||||||||||||||||||||||
Finance and insurance | 676 | — | (67 | ) | 85 | — | — | (1 | ) | — | (39 | ) | 654 | — | (61 | ) | ||||||||||||||||||||||||||||||||
Consumer—non-cyclical | 92 | — | (6 | ) | — | — | — | — | — | — | 86 | — | (5 | ) | ||||||||||||||||||||||||||||||||||
Technology and communications | 28 | — | (3 | ) | — | — | — | — | — | — | 25 | — | (3 | ) | ||||||||||||||||||||||||||||||||||
Industrial | 35 | — | (2 | ) | — | — | — | — | — | — | 33 | — | (2 | ) | ||||||||||||||||||||||||||||||||||
Capital goods | 41 | — | (3 | ) | — | — | — | — | — | — | 38 | — | (3 | ) | ||||||||||||||||||||||||||||||||||
Consumer—cyclical | 127 | — | (7 | ) | — | — | — | (1 | ) | — | — | 119 | — | (7 | ) | |||||||||||||||||||||||||||||||||
Transportation | 64 | — | (3 | ) | — | — | — | (1 | ) | — | (4 | ) | 56 | — | (3 | ) | ||||||||||||||||||||||||||||||||
Other | 222 | — | (12 | ) | — | — | — | (3 | ) | — | — | 207 | — | (12 | ) | |||||||||||||||||||||||||||||||||
Total U.S. corporate | 2,269 | — | (206 | ) | 85 | — | — | (14 | ) | 70 | (54 | ) | 2,150 | — | (199 | ) | ||||||||||||||||||||||||||||||||
Non-U.S. corporate: | ||||||||||||||||||||||||||||||||||||||||||||||||
Utilities | 334 | — | (25 | ) | — | — | — | — | — | — | 309 | — | (24 | ) | ||||||||||||||||||||||||||||||||||
Energy | 138 | — | (7 | ) | 3 | — | — | (1 | ) | — | — | 133 | — | (8 | ) | |||||||||||||||||||||||||||||||||
Finance and insurance | 143 | 1 | (12 | ) | — | — | — | — | — | — | 132 | 1 | (12 | ) | ||||||||||||||||||||||||||||||||||
Consumer—non-cyclical | 60 | — | (4 | ) | — | — | — | — | 11 | — | 67 | — | (4 | ) | ||||||||||||||||||||||||||||||||||
Technology and communications | 27 | — | (1 | ) | — | — | — | — | — | — | 26 | — | (1 | ) | ||||||||||||||||||||||||||||||||||
Industrial | 74 | — | (4 | ) | — | — | — | — | — | (1 | ) | 69 | — | (5 | ) | |||||||||||||||||||||||||||||||||
Capital goods | 132 | — | (7 | ) | — | (10 | ) | — | — | — | — | 115 | — | (7 | ) | |||||||||||||||||||||||||||||||||
Consumer—cyclical | 86 | — | (7 | ) | — | — | — | — | — | — | 79 | — | (7 | ) | ||||||||||||||||||||||||||||||||||
Transportation | 22 | — | (1 | ) | — | — | — | — | — | — | 21 | — | (1 | ) | ||||||||||||||||||||||||||||||||||
Other | 24 | — | (2 | ) | — | — | — | — | — | — | 22 | — | (1 | ) | ||||||||||||||||||||||||||||||||||
Total non-U.S. corporate | 1,040 | 1 | (70 | ) | 3 | (10 | ) | — | (1 | ) | 11 | (1 | ) | 973 | 1 | (70 | ) | |||||||||||||||||||||||||||||||
Residential mortgage-backed | 33 | — | (2 | ) | 4 | — | — | (1 | ) | — | (4 | ) | 30 | — | (2 | ) | ||||||||||||||||||||||||||||||||
Commercial mortgage-backed | 15 | — | (1 | ) | — | — | — | — | — | — | 14 | — | (2 | ) | ||||||||||||||||||||||||||||||||||
Other asset-backed | 100 | — | (5 | ) | 40 | (6 | ) | — | — | — | — | 129 | — | (5 | ) | |||||||||||||||||||||||||||||||||
Total fixed maturity securities | 3,529 | 2 | (293 | ) | 134 | (16 | ) | — | (16 | ) | 81 | (59 | ) | 3,362 | 2 | (287 | ) | |||||||||||||||||||||||||||||||
Equity securities | 36 | — | — | — | (1 | ) | — | — | — | — | 35 | — | — | |||||||||||||||||||||||||||||||||||
Limited partnerships | 26 | (3 | ) | — | — | — | — | — | — | — | 23 | (3 | ) | — | ||||||||||||||||||||||||||||||||||
Other invested assets: | ||||||||||||||||||||||||||||||||||||||||||||||||
Derivative assets: | ||||||||||||||||||||||||||||||||||||||||||||||||
Equity index options | 30 | (1 | ) | — | 3 | — | — | (2 | ) | — | — | 30 | (4 | ) | — | |||||||||||||||||||||||||||||||||
Total derivative assets | 30 | (1 | ) | — | 3 | — | — | (2 | ) | — | — | 30 | (4 | ) | — | |||||||||||||||||||||||||||||||||
Total other invested assets | 30 | (1 | ) | — | 3 | — | — | (2 | ) | — | — | 30 | (4 | ) | — | |||||||||||||||||||||||||||||||||
Total Level 3 assets | $ | 3,621 | $ | (2 | ) | $ | (293 | ) | $ | 137 | $ | (17 | ) | $ | — | $ | (18 | ) | $ | 81 | $ | (59 | ) | $ | 3,450 | $ | (5 | ) | $ | (287 | ) | |||||||||||||||||
Beginning balance as of July 1, 2022 | Total realized and unrealized gains (losses) | Ending balance as of September 30, 2022 | Total gains (losses) attributable to assets still held | |||||||||||||||||||||||||||||||||||||||||||||
(Amounts in millions) | Included in net income | Included in OCI | Purchases | Sales | Issuances | Settlements | Transfer into Level 3 (1) | Transfer out of Level 3 (1) | Included in net income | Included in OCI | ||||||||||||||||||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||||||||||||||||||||||||||
State and political subdivisions | $ | 63 | $ | — | $ | (7 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 56 | $ | — | $ | (8 | ) | ||||||||||||||||||||||
Non-U.S. government | 3 | — | — | — | (1 | ) | — | — | — | — | 2 | — | — | |||||||||||||||||||||||||||||||||||
U.S. corporate: | ||||||||||||||||||||||||||||||||||||||||||||||||
Utilities | 810 | — | (59 | ) | 23 | — | — | (6 | ) | — | — | 768 | — | (58 | ) | |||||||||||||||||||||||||||||||||
Energy | 122 | — | (6 | ) | — | — | — | (1 | ) | — | — | 115 | — | (6 | ) | |||||||||||||||||||||||||||||||||
Finance and insurance | 654 | — | (32 | ) | 16 | — | — | (9 | ) | — | — | 629 | — | (33 | ) | |||||||||||||||||||||||||||||||||
Consumer—non-cyclical | 86 | — | (3 | ) | — | — | — | (1 | ) | — | — | 82 | — | (3 | ) | |||||||||||||||||||||||||||||||||
Technology and communications | 25 | — | (1 | ) | — | — | — | — | — | — | 24 | — | (1 | ) | ||||||||||||||||||||||||||||||||||
Industrial | 33 | — | (1 | ) | — | — | — | — | — | — | 32 | — | — | |||||||||||||||||||||||||||||||||||
Capital goods | 38 | — | (1 | ) | — | — | — | — | — | — | 37 | — | (2 | ) | ||||||||||||||||||||||||||||||||||
Consumer—cyclical | 119 | — | (5 | ) | — | — | — | (1 | ) | — | — | 113 | — | (5 | ) | |||||||||||||||||||||||||||||||||
Transportation | 56 | — | (2 | ) | — | — | — | (1 | ) | — | — | 53 | — | (2 | ) | |||||||||||||||||||||||||||||||||
Other | 207 | — | (6 | ) | — | (7 | ) | — | (1 | ) | — | — | 193 | — | (7 | ) | ||||||||||||||||||||||||||||||||
Total U.S. corporate | 2,150 | — | (116 | ) | 39 | (7 | ) | — | (20 | ) | — | — | 2,046 | — | (117 | ) | ||||||||||||||||||||||||||||||||
Non-U.S. corporate: | ||||||||||||||||||||||||||||||||||||||||||||||||
Utilities | 309 | — | (16 | ) | — | — | — | (18 | ) | — | — | 275 | — | (17 | ) | |||||||||||||||||||||||||||||||||
Energy | 133 | — | (4 | ) | — | — | — | (7 | ) | — | — | 122 | — | (3 | ) | |||||||||||||||||||||||||||||||||
Finance and insurance | 132 | 2 | (11 | ) | — | — | — | — | — | — | 123 | 2 | (12 | ) | ||||||||||||||||||||||||||||||||||
Consumer—non-cyclical | 67 | — | (2 | ) | 9 | — | — | — | — | — | 74 | — | (2 | ) | ||||||||||||||||||||||||||||||||||
Technology and communications | 26 | — | (1 | ) | — | — | — | — | — | — | 25 | — | (1 | ) | ||||||||||||||||||||||||||||||||||
Industrial | 69 | — | (3 | ) | — | — | — | (20 | ) | — | — | 46 | — | (3 | ) | |||||||||||||||||||||||||||||||||
Capital goods | 115 | — | (4 | ) | — | — | — | (19 | ) | — | — | 92 | — | (3 | ) | |||||||||||||||||||||||||||||||||
Consumer—cyclical | 79 | — | (4 | ) | — | — | — | — | — | — | 75 | — | (4 | ) | ||||||||||||||||||||||||||||||||||
Transportation | 21 | — | — | — | — | — | — | — | — | 21 | — | (1 | ) | |||||||||||||||||||||||||||||||||||
Other | 22 | — | (1 | ) | — | — | — | — | — | — | 21 | — | (1 | ) | ||||||||||||||||||||||||||||||||||
Total non-U.S. corporate | 973 | 2 | (46 | ) | 9 | — | — | (64 | ) | — | — | 874 | 2 | (47 | ) | |||||||||||||||||||||||||||||||||
Residential mortgage-backed | 30 | — | (1 | ) | — | — | — | — | — | (4 | ) | 25 | — | — | ||||||||||||||||||||||||||||||||||
Commercial mortgage-backed | 14 | — | (3 | ) | — | — | — | — | 1 | — | 12 | — | (2 | ) | ||||||||||||||||||||||||||||||||||
Other asset-backed | 129 | — | (5 | ) | 26 | — | — | (2 | ) | — | (38 | ) | 110 | — | (4 | ) | ||||||||||||||||||||||||||||||||
Total fixed maturity securities | 3,362 | 2 | (178 | ) | 74 | (8 | ) | — | (86 | ) | 1 | (42 | ) | 3,125 | 2 | (178 | ) | |||||||||||||||||||||||||||||||
Equity securities | 35 | — | — | — | — | — | — | — | — | 35 | — | — | ||||||||||||||||||||||||||||||||||||
Limited partnerships | 23 | 1 | — | — | — | — | — | — | — | 24 | 1 | — | ||||||||||||||||||||||||||||||||||||
Other invested assets: | ||||||||||||||||||||||||||||||||||||||||||||||||
Derivative assets: | ||||||||||||||||||||||||||||||||||||||||||||||||
Equity index options | 30 | 5 | — | 3 | — | — | — | — | — | 38 | (5 | ) | — | |||||||||||||||||||||||||||||||||||
Total derivative assets | 30 | 5 | — | 3 | — | — | — | — | — | 38 | (5 | ) | — | |||||||||||||||||||||||||||||||||||
Total other invested assets | 30 | 5 | — | 3 | — | — | — | — | — | 38 | (5 | ) | — | |||||||||||||||||||||||||||||||||||
Total Level 3 assets | $ | 3,450 | $ | 8 | $ | (178 | ) | $ | 77 | $ | (8 | ) | $ | — | $ | (86 | ) | $ | 1 | $ | (42 | ) | $ | 3,222 | $ | (2 | ) | $ | (178 | ) | ||||||||||||||||||
(1) | The transfers into and out of Level 3 for fixed maturity securities were related to changes in the primary pricing source and changes in the observability of external information used in determining the fair value, such as external ratings or credit spreads, as well as changes in the industry sectors assigned to specific securities. |
Beginning balance as of January 1, 2023 | Total realized and unrealized gains (losses) | Purchases | Sales | Issuances | Settlements | Transfer into Level 3 (1) | Transfer out of Level 3 (1) | Ending balance as of June 30, 2023 | Total gains (losses) attributable to assets still held | |||||||||||||||||||||||||||||||||||||||
(Amounts in millions) | Included in net income | Included in OCI | Included in net income | Included in OCI | ||||||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||||||||||||||||||||||||||
State and political subdivisions | $ | 55 | $ | 2 | $ | 3 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 60 | $ | 2 | $ | 3 | ||||||||||||||||||||||||
U.S. corporate: | ||||||||||||||||||||||||||||||||||||||||||||||||
Utilities | 842 | — | — | 40 | (40 | ) | — | (10 | ) | 11 | (25 | ) | 818 | — | (8 | ) | ||||||||||||||||||||||||||||||||
Energy | 116 | — | 1 | — | (1 | ) | — | (2 | ) | — | (55 | ) | 59 | — | 1 | |||||||||||||||||||||||||||||||||
Finance and insurance | 687 | — | (3 | ) | 63 | — | — | (35 | ) | — | (8 | ) | 704 | — | (6 | ) | ||||||||||||||||||||||||||||||||
Consumer—non-cyclical | 82 | — | — | — | — | — | (14 | ) | — | — | 68 | — | — | |||||||||||||||||||||||||||||||||||
Technology and communications | 24 | — | — | — | — | — | — | — | (13 | ) | 11 | — | — | |||||||||||||||||||||||||||||||||||
Industrial | 22 | — | — | — | — | — | — | — | — | 22 | — | — | ||||||||||||||||||||||||||||||||||||
Capital goods | 34 | — | — | — | — | — | — | — | — | 34 | — | — | ||||||||||||||||||||||||||||||||||||
Consumer—cyclical | 113 | — | — | 1 | — | — | (3 | ) | 13 | — | 124 | — | — | |||||||||||||||||||||||||||||||||||
Transportation | 43 | — | — | — | — | — | (20 | ) | — | — | 23 | — | — | |||||||||||||||||||||||||||||||||||
Other | 159 | — | 1 | — | — | — | (7 | ) | — | — | 153 | — | 1 | |||||||||||||||||||||||||||||||||||
Total U.S. corporate | 2,122 | — | (1 | ) | 104 | (41 | ) | — | (91 | ) | 24 | (101 | ) | 2,016 | — | (12 | ) | |||||||||||||||||||||||||||||||
Non-U.S. corporate: | ||||||||||||||||||||||||||||||||||||||||||||||||
Utilities | 295 | — | (4 | ) | 4 | — | — | (5 | ) | 30 | — | 320 | — | (3 | ) | |||||||||||||||||||||||||||||||||
Energy | 118 | — | — | — | — | — | (1 | ) | — | — | 117 | — | — | |||||||||||||||||||||||||||||||||||
Finance and insurance | 125 | 3 | (2 | ) | — | — | — | — | — | — | 126 | 3 | (2 | ) | ||||||||||||||||||||||||||||||||||
Consumer—non-cyclical | 73 | — | — | — | — | — | — | — | — | 73 | — | — | ||||||||||||||||||||||||||||||||||||
Technology and communications | 26 | — | — | — | — | — | — | — | — | 26 | — | — | ||||||||||||||||||||||||||||||||||||
Industrial | 48 | — | 2 | 25 | — | — | — | — | — | 75 | — | 1 | ||||||||||||||||||||||||||||||||||||
Capital goods | 95 | 1 | 3 | — | (12 | ) | — | (36 | ) | — | — | 51 | — | 2 | ||||||||||||||||||||||||||||||||||
Consumer—cyclical | 64 | — | 7 | — | (6 | ) | — | (56 | ) | — | — | 9 | — | 1 | ||||||||||||||||||||||||||||||||||
Transportation | 20 | — | — | 1 | — | — | — | — | — | 21 | — | — | ||||||||||||||||||||||||||||||||||||
Other | 21 | — | — | — | — | — | — | — | — | 21 | — | — | ||||||||||||||||||||||||||||||||||||
Total non-U.S. corporate | 885 | 4 | 6 | 30 | (18 | ) | — | (98 | ) | 30 | — | 839 | 3 | (1 | ) | |||||||||||||||||||||||||||||||||
Residential mortgage-backed | 22 | — | 2 | — | — | — | (1 | ) | — | (15 | ) | 8 | — | — | ||||||||||||||||||||||||||||||||||
Commercial mortgage-backed | 12 | — | — | — | (1 | ) | — | — | — | — | 11 | — | — | |||||||||||||||||||||||||||||||||||
Other asset-backed | 94 | — | 1 | 12 | — | — | (1 | ) | — | (2 | ) | 104 | — | 1 | ||||||||||||||||||||||||||||||||||
Total fixed maturity securities | 3,190 | 6 | 11 | 146 | (60 | ) | — | (191 | ) | 54 | (118 | ) | 3,038 | 5 | (9 | ) | ||||||||||||||||||||||||||||||||
Equity securities | 34 | — | — | 1 | (5 | ) | — | — | — | — | 30 | — | — | |||||||||||||||||||||||||||||||||||
Limited partnerships | 24 | (3 | ) | — | — | — | — | — | — | — | 21 | (3 | ) | — | ||||||||||||||||||||||||||||||||||
Other invested assets: | ||||||||||||||||||||||||||||||||||||||||||||||||
Derivative assets: | ||||||||||||||||||||||||||||||||||||||||||||||||
Equity index options | 6 | 6 | — | 5 | — | — | (2 | ) | — | — | 15 | 5 | — | |||||||||||||||||||||||||||||||||||
Total derivative assets | 6 | 6 | — | 5 | — | — | (2 | ) | — | — | 15 | 5 | — | |||||||||||||||||||||||||||||||||||
Short-term investments | — | — | — | 7 | — | — | — | — | — | 7 | — | — | ||||||||||||||||||||||||||||||||||||
Total other invested assets | 6 | 6 | — | 12 | — | — | (2 | ) | — | — | 22 | 5 | — | |||||||||||||||||||||||||||||||||||
Total Level 3 assets | $ | 3,254 | $ | 9 | $ | 11 | $ | 159 | $ | (65 | ) | $ | — | $ | (193 | ) | $ | 54 | $ | (118 | ) | $ | 3,111 | $ | 7 | $ | (9 | ) | ||||||||||||||||||||
Beginning balance as of January 1, 2023 | Total realized and unrealized gains (losses) | Ending balance as of September 30, 2023 | Total gains (losses) attributable to assets still held | |||||||||||||||||||||||||||||||||||||||||||||
(Amounts in millions) | Included in net income | Included in OCI | Purchases | Sales | Issuances | Settlements | Transfer into Level 3 (1) | Transfer out of Level 3 (1) | Included in net income | Included in OCI | ||||||||||||||||||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||||||||||||||||||||||||||
State and political subdivisions | $ | 55 | $ | 3 | $ | (2 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 56 | $ | 3 | $ | (2 | ) | ||||||||||||||||||||||
Non-U.S. government | — | — | — | — | — | — | — | 1 | — | 1 | — | — | ||||||||||||||||||||||||||||||||||||
U.S. corporate: | ||||||||||||||||||||||||||||||||||||||||||||||||
Utilities | 842 | — | (42 | ) | 63 | (40 | ) | — | (10 | ) | 11 | (36 | ) | 788 | — | (50 | ) | |||||||||||||||||||||||||||||||
Energy | 116 | — | — | — | (1 | ) | — | (3 | ) | — | (55 | ) | 57 | — | — | |||||||||||||||||||||||||||||||||
Finance and insurance | 687 | — | (20 | ) | 92 | — | — | (42 | ) | — | (15 | ) | 702 | — | (22 | ) | ||||||||||||||||||||||||||||||||
Consumer—non-cyclical | 82 | — | (1 | ) | — | — | — | (15 | ) | — | — | 66 | — | (1 | ) | |||||||||||||||||||||||||||||||||
Technology and communications | 24 | — | — | — | — | — | — | — | (13 | ) | 11 | — | — | |||||||||||||||||||||||||||||||||||
Industrial | 22 | — | — | — | — | — | — | — | — | 22 | — | — | ||||||||||||||||||||||||||||||||||||
Capital goods | 34 | — | (1 | ) | — | — | — | — | — | — | 33 | — | (1 | ) | ||||||||||||||||||||||||||||||||||
Consumer—cyclical | 113 | — | (2 | ) | 1 | — | — | (5 | ) | 13 | — | 120 | — | (2 | ) | |||||||||||||||||||||||||||||||||
Transportation | 43 | — | — | — | — | — | (21 | ) | — | — | 22 | — | — | |||||||||||||||||||||||||||||||||||
Other | 159 | — | (3 | ) | — | — | — | (8 | ) | — | — | 148 | — | (3 | ) | |||||||||||||||||||||||||||||||||
Total U.S. corporate | 2,122 | — | (69 | ) | 156 | (41 | ) | — | (104 | ) | 24 | (119 | ) | 1,969 | — | (79 | ) | |||||||||||||||||||||||||||||||
Non-U.S. corporate: | ||||||||||||||||||||||||||||||||||||||||||||||||
Utilities | 295 | — | (10 | ) | 4 | — | — | (5 | ) | 30 | (8 | ) | 306 | — | (10 | ) | ||||||||||||||||||||||||||||||||
Energy | 118 | — | (2 | ) | — | — | — | (1 | ) | 11 | — | 126 | — | (3 | ) | |||||||||||||||||||||||||||||||||
Finance and insurance | 125 | 4 | (7 | ) | — | — | — | — | — | — | 122 | 4 | (7 | ) | ||||||||||||||||||||||||||||||||||
Consumer—non-cyclical | 73 | — | (1 | ) | — | — | — | — | — | — | 72 | — | (1 | ) | ||||||||||||||||||||||||||||||||||
Technology and communications | 26 | — | — | — | — | — | (3 | ) | — | — | 23 | — | — | |||||||||||||||||||||||||||||||||||
Industrial | 48 | — | (1 | ) | 25 | — | — | (15 | ) | 1 | — | 58 | — | (1 | ) | |||||||||||||||||||||||||||||||||
Capital goods | 95 | 1 | 3 | — | (12 | ) | — | (36 | ) | — | — | 51 | — | 1 | ||||||||||||||||||||||||||||||||||
Consumer—cyclical | 64 | — | 7 | — | (6 | ) | — | (56 | ) | — | — | 9 | — | 2 | ||||||||||||||||||||||||||||||||||
Transportation | 20 | — | — | 1 | — | — | — | — | — | 21 | — | — | ||||||||||||||||||||||||||||||||||||
Other | 21 | — | — | — | — | — | — | — | — | 21 | — | — | ||||||||||||||||||||||||||||||||||||
Total non-U.S. corporate | 885 | 5 | (11 | ) | 30 | (18 | ) | — | (116 | ) | 42 | (8 | ) | 809 | 4 | (19 | ) | |||||||||||||||||||||||||||||||
Residential mortgage-backed | 22 | — | 1 | — | — | — | (1 | ) | — | (19 | ) | 3 | — | — | ||||||||||||||||||||||||||||||||||
Commercial mortgage-backed | 12 | — | (1 | ) | — | (1 | ) | — | — | — | — | 10 | — | (1 | ) | |||||||||||||||||||||||||||||||||
Other asset-backed | 94 | — | — | 16 | — | — | (2 | ) | — | (12 | ) | 96 | — | — | ||||||||||||||||||||||||||||||||||
Total fixed maturity securities | 3,190 | 8 | (82 | ) | 202 | (60 | ) | — | (223 | ) | 67 | (158 | ) | 2,944 | 7 | (101 | ) | |||||||||||||||||||||||||||||||
Equity securities | 34 | — | — | 5 | (7 | ) | — | — | — | — | 32 | — | — | |||||||||||||||||||||||||||||||||||
Limited partnerships | 24 | (3 | ) | — | — | — | — | (1 | ) | — | — | 20 | (3 | ) | — | |||||||||||||||||||||||||||||||||
Other invested assets: | ||||||||||||||||||||||||||||||||||||||||||||||||
Derivative assets: | ||||||||||||||||||||||||||||||||||||||||||||||||
Equity index options | 6 | 2 | — | 8 | — | — | (5 | ) | — | — | 11 | — | — | |||||||||||||||||||||||||||||||||||
Total derivative assets | 6 | 2 | — | 8 | — | — | (5 | ) | — | — | 11 | — | — | |||||||||||||||||||||||||||||||||||
Short-term investments | — | — | — | 7 | — | — | — | — | — | 7 | — | — | ||||||||||||||||||||||||||||||||||||
Total other invested assets | 6 | 2 | — | 15 | — | — | (5 | ) | — | — | 18 | — | — | |||||||||||||||||||||||||||||||||||
Total Level 3 assets | $ | 3,254 | $ | 7 | $ | (82 | ) | $ | 222 | $ | (67 | ) | $ | — | $ | (229 | ) | $ | 67 | $ | (158 | ) | $ | 3,014 | $ | 4 | $ | (101 | ) | |||||||||||||||||||
(1) | The transfers into and out of Level 3 for fixed maturity securities were related to changes in the primary pricing source and changes in the observability of external information used in determining the fair value, such as external ratings or credit spreads, as well as changes in the industry sectors assigned to specific securities. |
Beginning balance as of January 1, 2022 | Total realized and unrealized gains (losses) | Purchases | Sales | Issuances | Settlements | Transfer into Level 3 (1) | Transfer out of Level 3 (1) | Ending balance as of June 30, 2022 | Total gains (losses) attributable to assets still held | |||||||||||||||||||||||||||||||||||||||
(Amounts in millions) | Included in net income | Included in OCI | Included in net income | Included in OCI | ||||||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||||||||||||||||||||||||||
State and political subdivisions | $ | 82 | $ | 2 | $ | (21 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 63 | $ | 2 | $ | (21 | ) | ||||||||||||||||||||||
Non-U.S. government | 2 | — | — | 2 | (1 | ) | — | — | — | — | 3 | — | — | |||||||||||||||||||||||||||||||||||
U.S. corporate: | ||||||||||||||||||||||||||||||||||||||||||||||||
Utilities | 950 | — | (165 | ) | 35 | — | — | (1 | ) | 2 | (11 | ) | 810 | — | (165 | ) | ||||||||||||||||||||||||||||||||
Energy | 76 | — | (15 | ) | — | — | — | (7 | ) | 68 | — | 122 | — | (15 | ) | |||||||||||||||||||||||||||||||||
Finance and insurance | 685 | — | (123 | ) | 151 | — | — | (3 | ) | — | (56 | ) | 654 | — | (116 | ) | ||||||||||||||||||||||||||||||||
Consumer—non-cyclical | 104 | — | (11 | ) | — | — | — | (7 | ) | — | — | 86 | — | (11 | ) | |||||||||||||||||||||||||||||||||
Technology and communications | 29 | — | (4 | ) | — | — | — | — | — | — | 25 | — | (4 | ) | ||||||||||||||||||||||||||||||||||
Industrial | 37 | — | (4 | ) | — | — | — | — | — | — | 33 | — | (4 | ) | ||||||||||||||||||||||||||||||||||
Capital goods | 45 | — | (7 | ) | — | — | — | — | — | — | 38 | — | (6 | ) | ||||||||||||||||||||||||||||||||||
Consumer—cyclical | 137 | — | (15 | ) | — | — | — | (3 | ) | — | — | 119 | — | (15 | ) | |||||||||||||||||||||||||||||||||
Transportation | 64 | — | (6 | ) | 5 | — | — | (3 | ) | — | (4 | ) | 56 | — | (6 | ) | ||||||||||||||||||||||||||||||||
Other | 254 | — | (23 | ) | — | — | — | (7 | ) | — | (17 | ) | 207 | — | (22 | ) | ||||||||||||||||||||||||||||||||
Total U.S. corporate | 2,381 | — | (373 | ) | 191 | — | — | (31 | ) | 70 | (88 | ) | 2,150 | — | (364 | ) | ||||||||||||||||||||||||||||||||
Non-U.S. corporate: | ||||||||||||||||||||||||||||||||||||||||||||||||
Utilities | 345 | — | (46 | ) | 10 | — | — | — | — | — | 309 | — | (45 | ) | ||||||||||||||||||||||||||||||||||
Energy | 145 | — | (14 | ) | 3 | — | — | (1 | ) | — | — | 133 | — | (15 | ) | |||||||||||||||||||||||||||||||||
Finance and insurance | 160 | 2 | (30 | ) | — | — | — | — | — | — | 132 | 2 | (30 | ) | ||||||||||||||||||||||||||||||||||
Consumer—non-cyclical | 63 | — | (7 | ) | — | — | — | — | 11 | — | 67 | — | (7 | ) | ||||||||||||||||||||||||||||||||||
Technology and communications | 28 | — | (2 | ) | — | — | — | — | — | — | 26 | — | (2 | ) | ||||||||||||||||||||||||||||||||||
Industrial | 93 | — | (10 | ) | — | — | — | — | — | (14 | ) | 69 | — | (9 | ) | |||||||||||||||||||||||||||||||||
Capital goods | 173 | — | (15 | ) | — | (10 | ) | — | (33 | ) | — | — | 115 | — | (15 | ) | ||||||||||||||||||||||||||||||||
Consumer—cyclical | 76 | — | (14 | ) | — | — | — | — | 17 | — | 79 | — | (14 | ) | ||||||||||||||||||||||||||||||||||
Transportation | 53 | — | (3 | ) | — | — | — | (29 | ) | — | — | 21 | — | (3 | ) | |||||||||||||||||||||||||||||||||
Other | 26 | — | (4 | ) | — | — | — | — | — | — | 22 | — | (3 | ) | ||||||||||||||||||||||||||||||||||
Total non-U.S. corporate | 1,162 | 2 | (145 | ) | 13 | (10 | ) | — | (63 | ) | 28 | (14 | ) | 973 | 2 | (143 | ) | |||||||||||||||||||||||||||||||
Residential mortgage-backed | 27 | — | (3 | ) | 13 | — | — | (2 | ) | 4 | (9 | ) | 30 | — | (2 | ) | ||||||||||||||||||||||||||||||||
Commercial mortgage-backed | 16 | — | (2 | ) | — | — | — | — | — | — | 14 | — | (3 | ) | ||||||||||||||||||||||||||||||||||
Other asset-backed | 138 | — | (12 | ) | 46 | (6 | ) | — | (3 | ) | — | (34 | ) | 129 | — | (10 | ) | |||||||||||||||||||||||||||||||
Total fixed maturity securities | 3,808 | 4 | (556 | ) | 265 | (17 | ) | — | (99 | ) | 102 | (145 | ) | 3,362 | 4 | (543 | ) | |||||||||||||||||||||||||||||||
Equity securities | 37 | — | — | — | (1 | ) | — | — | — | (1 | ) | 35 | — | — | ||||||||||||||||||||||||||||||||||
Limited partnerships | 26 | (3 | ) | — | — | — | — | — | — | — | 23 | (3 | ) | — | ||||||||||||||||||||||||||||||||||
Other invested assets: | ||||||||||||||||||||||||||||||||||||||||||||||||
Derivative assets: | ||||||||||||||||||||||||||||||||||||||||||||||||
Equity index options | 42 | (7 | ) | — | 8 | — | — | (13 | ) | — | — | 30 | 2 | — | ||||||||||||||||||||||||||||||||||
Total derivative assets | 42 | (7 | ) | — | 8 | — | — | (13 | ) | — | — | 30 | 2 | — | ||||||||||||||||||||||||||||||||||
Total other invested assets | 42 | (7 | ) | — | 8 | — | — | (13 | ) | — | — | 30 | 2 | — | ||||||||||||||||||||||||||||||||||
Total Level 3 assets | $ | 3,913 | $ | (6 | ) | $ | (556 | ) | $ | 273 | $ | (18 | ) | $ | — | $ | (112 | ) | $ | 102 | $ | (146 | ) | $ | 3,450 | $ | 3 | $ | (543 | ) | ||||||||||||||||||
Beginning balance as of January 1, 2022 | Total realized and unrealized gains (losses) | Ending balance as of September 30, 2022 | Total gains (losses) attributable to assets still held | |||||||||||||||||||||||||||||||||||||||||||||
(Amounts in millions) | Included in net income | Included in OCI | Purchases | Sales | Issuances | Settlements | Transfer into Level 3 (1) | Transfer out of Level 3 (1) | Included in net income | Included in OCI | ||||||||||||||||||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||||||||||||||||||||||||||
State and political subdivisions | $ | 82 | $ | 2 | $ | (28 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 56 | $ | 2 | $ | (29 | ) | ||||||||||||||||||||||
Non-U.S. government | 2 | — | — | 2 | (2 | ) | — | — | — | — | 2 | — | — | |||||||||||||||||||||||||||||||||||
U.S. corporate: | ||||||||||||||||||||||||||||||||||||||||||||||||
Utilities | 950 | — | (224 | ) | 58 | — | — | (7 | ) | 2 | (11 | ) | 768 | — | (223 | ) | ||||||||||||||||||||||||||||||||
Energy | 76 | — | (21 | ) | — | — | — | (8 | ) | 68 | — | 115 | — | (21 | ) | |||||||||||||||||||||||||||||||||
Finance and insurance | 685 | — | (155 | ) | 167 | — | — | (12 | ) | — | (56 | ) | 629 | — | (149 | ) | ||||||||||||||||||||||||||||||||
Consumer—non-cyclical | 104 | — | (14 | ) | — | — | — | (8 | ) | — | — | 82 | — | (14 | ) | |||||||||||||||||||||||||||||||||
Technology and communications | 29 | — | (5 | ) | — | — | — | — | — | — | 24 | — | (5 | ) | ||||||||||||||||||||||||||||||||||
Industrial | 37 | — | (5 | ) | — | — | — | — | — | — | 32 | — | (4 | ) | ||||||||||||||||||||||||||||||||||
Capital goods | 45 | — | (8 | ) | — | — | — | — | — | — | 37 | — | (8 | ) | ||||||||||||||||||||||||||||||||||
Consumer—cyclical | 137 | — | (20 | ) | — | — | — | (4 | ) | — | — | 113 | — | (20 | ) | |||||||||||||||||||||||||||||||||
Transportation | 64 | — | (8 | ) | 5 | — | — | (4 | ) | — | (4 | ) | 53 | — | (8 | ) | ||||||||||||||||||||||||||||||||
Other | 254 | — | (29 | ) | — | (7 | ) | — | (8 | ) | — | (17 | ) | 193 | — | (29 | ) | |||||||||||||||||||||||||||||||
Total U.S. corporate | 2,381 | — | (489 | ) | 230 | (7 | ) | — | (51 | ) | 70 | (88 | ) | 2,046 | — | (481 | ) | |||||||||||||||||||||||||||||||
Non-U.S. corporate: | ||||||||||||||||||||||||||||||||||||||||||||||||
Utilities | 345 | — | (62 | ) | 10 | — | — | (18 | ) | — | — | 275 | — | (62 | ) | |||||||||||||||||||||||||||||||||
Energy | 145 | — | (18 | ) | 3 | — | — | (8 | ) | — | — | 122 | — | (18 | ) | |||||||||||||||||||||||||||||||||
Finance and insurance | 160 | 4 | (41 | ) | — | — | — | — | — | — | 123 | 4 | (42 | ) | ||||||||||||||||||||||||||||||||||
Consumer—non-cyclical | 63 | — | (9 | ) | 9 | — | — | — | 11 | — | 74 | — | (9 | ) | ||||||||||||||||||||||||||||||||||
Technology and communications | 28 | — | (3 | ) | — | — | — | — | — | — | 25 | — | (3 | ) | ||||||||||||||||||||||||||||||||||
Industrial | 93 | — | (13 | ) | — | — | — | (20 | ) | — | (14 | ) | 46 | — | (12 | ) | ||||||||||||||||||||||||||||||||
Capital goods | 173 | — | (19 | ) | — | (10 | ) | — | (52 | ) | — | — | 92 | — | (18 | ) | ||||||||||||||||||||||||||||||||
Consumer—cyclical | 76 | — | (18 | ) | — | — | — | — | 17 | — | 75 | — | (18 | ) | ||||||||||||||||||||||||||||||||||
Transportation | 53 | — | (3 | ) | — | — | — | (29 | ) | — | — | 21 | — | (4 | ) | |||||||||||||||||||||||||||||||||
Other | 26 | — | (5 | ) | — | — | — | — | — | — | 21 | — | (4 | ) | ||||||||||||||||||||||||||||||||||
Total non-U.S. corporate | 1,162 | 4 | (191 | ) | 22 | (10 | ) | — | (127 | ) | 28 | (14 | ) | 874 | 4 | (190 | ) | |||||||||||||||||||||||||||||||
Residential mortgage-backed | 27 | — | (4 | ) | 13 | — | — | (2 | ) | 4 | (13 | ) | 25 | — | (2 | ) | ||||||||||||||||||||||||||||||||
Commercial mortgage-backed | 16 | — | (5 | ) | — | — | — | — | 1 | — | 12 | — | (5 | ) | ||||||||||||||||||||||||||||||||||
Other asset-backed | 138 | — | (17 | ) | 72 | (6 | ) | — | (5 | ) | — | (72 | ) | 110 | — | (14 | ) | |||||||||||||||||||||||||||||||
Total fixed maturity securities | 3,808 | 6 | (734 | ) | 339 | (25 | ) | — | (185 | ) | 103 | (187 | ) | 3,125 | 6 | (721 | ) | |||||||||||||||||||||||||||||||
Equity securities | 37 | — | — | — | (1 | ) | — | — | — | (1 | ) | 35 | — | — | ||||||||||||||||||||||||||||||||||
Limited partnerships | 26 | (2 | ) | — | — | — | — | — | — | — | 24 | (2 | ) | — | ||||||||||||||||||||||||||||||||||
Other invested assets: | ||||||||||||||||||||||||||||||||||||||||||||||||
Derivative assets: | ||||||||||||||||||||||||||||||||||||||||||||||||
Equity index options | 42 | (2 | ) | — | 11 | — | — | (13 | ) | — | — | 38 | 14 | — | ||||||||||||||||||||||||||||||||||
Total derivative assets | 42 | (2 | ) | — | 11 | — | — | (13 | ) | — | — | 38 | 14 | — | ||||||||||||||||||||||||||||||||||
Total other invested assets | 42 | (2 | ) | — | 11 | — | — | (13 | ) | — | — | 38 | 14 | — | ||||||||||||||||||||||||||||||||||
Total Level 3 assets | $ | 3,913 | $ | 2 | $ | (734 | ) | $ | 350 | $ | (26 | ) | $ | — | $ | (198 | ) | $ | 103 | $ | (188 | ) | $ | 3,222 | $ | 18 | $ | (721 | ) | |||||||||||||||||||
(1) | The transfers into and out of Level 3 for fixed maturity securities were related to changes in the primary pricing source and changes in the observability of external information used in determining the fair value, such as external ratings or credit spreads, as well as changes in the industry sectors assigned to specific securities. |
Three months ended June 30, | Six months ended June 30, | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||
(Amounts in millions) | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||
Total realized and unrealized gains (losses) included in net income: | ||||||||||||||||||||||||||||||||
Total realized and unrealized gains (losses) included in net income: | ||||||||||||||||||||||||||||||||
Net investment income | $ | 3 | $ | 2 | $ | 6 | $ | 4 | $ | 2 | $ | 2 | $ | 8 | $ | 6 | ||||||||||||||||
Net investment gains (losses) | 4 | (4 | ) | 3 | (10 | ) | (4 | ) | 6 | (1 | ) | (4 | ) | |||||||||||||||||||
Total | $ | 7 | $ | (2 | ) | $ | 9 | $ | (6 | ) | $ | (2 | ) | $ | 8 | $ | 7 | $ | 2 | |||||||||||||
Total gains (losses) included in net income attributable to assets still held: | ||||||||||||||||||||||||||||||||
Total gains (losses) included in net income attributable to assets still held: | ||||||||||||||||||||||||||||||||
Net investment income | $ | 3 | $ | 2 | $ | 5 | $ | 4 | $ | 2 | $ | 2 | $ | 7 | $ | 6 | ||||||||||||||||
Net investment gains (losses) | 3 | (7 | ) | 2 | (1 | ) | (4 | ) | (4 | ) | (3 | ) | 12 | |||||||||||||||||||
Total | $ | 6 | $ | (5 | ) | $ | 7 | $ | 3 | $ | (2 | ) | $ | (2 | ) | $ | 4 | $ | 18 | |||||||||||||
(Amounts in millions) | Valuation technique | Fair value | Unobservable input | Range | Weighted-average (1) | |||||||
Fixed maturity securities: | ||||||||||||
U.S. corporate: | ||||||||||||
Utilities | Internal models | $ | 790 | Credit spreads | 70bps - 267bps | 180bps | ||||||
Energy | Internal models | 45 | Credit spreads | 134bps - 280bps | 201bps | |||||||
Finance and insurance | Internal models | 693 | Credit spreads | —bps - 343bps | 217bps | |||||||
Consumer—non-cyclical | Internal models | 68 | Credit spreads | 101bps - 280bps | 168bps | |||||||
Technology and communications | Internal models | 11 | Credit spreads | 72bps - 120bps | 92bps | |||||||
Industrial | Internal models | 22 | Credit spreads | 134bps - 235bps | 162bps | |||||||
Capital goods | Internal models | 34 | Credit spreads | 92bps - 204bps | 164bps | |||||||
Consumer—cyclical | Internal models | 124 | Credit spreads | 101bps - 220bps | 152bps | |||||||
Transportation | Internal models | 23 | Credit spreads | 51bps - 191bps | 128bps | |||||||
Other | Internal models | 103 | Credit spreads | 104bps - 151bps | 115bps | |||||||
Total U.S. corporate | Internal models | $ | 1,913 | Credit spreads | —bps - 343bps | 186bps | ||||||
Non-U.S. corporate: | ||||||||||||
Utilities | Internal models | $ | 245 | Credit spreads | 95bps - 267bps | 159bps | ||||||
Energy | Internal models | 110 | Credit spreads | 109bps - 235bps | 167bps | |||||||
Finance and insurance | Internal models | 125 | Credit spreads | 141bps - 272bps | 193bps | |||||||
Consumer—non-cyclical | Internal models | 70 | Credit spreads | 72bps - 166bps | 116bps | |||||||
Technology and communications | Internal models | 26 | Credit spreads | 109bps - 134bps | 119bps | |||||||
Industrial | Internal models | 73 | Credit spreads | 92bps - 232bps | 174bps | |||||||
Capital goods | Internal models | 51 | Credit spreads | 72bps - 280bps | 141bps | |||||||
Transportation | Internal models | 20 | Credit spreads | 140bps - 195bps | 151bps | |||||||
Other | Internal models | 21 | Credit spreads | 70bps - 179bps | 138bps | |||||||
Total non-U.S. corporate | Internal models | $ | 741 | Credit spreads | 70bps - 280bps | 160bps | ||||||
Derivative assets: | ||||||||||||
Equity index options | Discounted cash flows | $ | 15 | Equity index volatility | 6% - 27% | 16% | ||||||
Lapse rate | 2% - 10% | 7% | ||||||||||
Non-performance risk (counterparty credit risk) | 42bps - 83bps | 69bps | ||||||||||
Other assets (2) | Cash flow model | $ | 135 | Equity index volatility | 14% - 30% | 22% |
(Amounts in millions) | Valuation technique | Fair value | Unobservable input | Range | Weighted-average (1) | |||||||||
Fixed maturity securities: | ||||||||||||||
U.S. corporate: | ||||||||||||||
Utilities | Internal models | $ | 761 | Credit spreads | 77bps - 247bps | 154bps | ||||||||
Energy | Internal models | 43 | Credit spreads | 138bps - 250bps | 184bps | |||||||||
Finance and insurance | Internal models | 691 | Credit spreads | 14bps - 297bps | 199bps | |||||||||
Consumer—non-cyclical | Internal models | 66 | Credit spreads | 91bps - 250bps | 158bps | |||||||||
Technology and communications | Internal models | 11 | Credit spreads | 78bps - 116bps | 93bps | |||||||||
Industrial | Internal models | 22 | Credit spreads | 138bps - 206bps | 156bps | |||||||||
Capital goods | Internal models | 33 | Credit spreads | 91bps - 193bps | 150bps | |||||||||
Consumer—cyclical | Internal models | 120 | Credit spreads | 101bps - 207bps | 147bps | |||||||||
Transportation | Internal models | 22 | Credit spreads | 51bps - 165bps | 116bps | |||||||||
Other | Internal models | 101 | Credit spreads | 91bps - 138bps | 102bps | |||||||||
Total U.S. corporate | Internal models | $ | 1,870 | Credit spreads | 14bps - 297bps | 167bps | ||||||||
Non-U.S. corporate: | ||||||||||||||
Utilities | Internal models | $ | 233 | Credit spreads | 96bps - 247bps | 143bps | ||||||||
Energy | Internal models | 119 | Credit spreads | 112bps - 221bps | 155bps | |||||||||
Finance and insurance | Internal models | 122 | Credit spreads | 140bps - 195bps | 171bps | |||||||||
Consumer—non-cyclical | Internal models | 69 | Credit spreads | 78bps - 161bps | 116bps | |||||||||
Technology and communications | Internal models | 23 | Credit spreads | 112bps - 138bps | 121bps | |||||||||
Industrial | Internal models | 56 | Credit spreads | 133bps - 221bps | 180bps | |||||||||
Capital goods | Internal models | 51 | Credit spreads | 78bps - 250bps | 137bps | |||||||||
Transportation | Internal models | 20 | Credit spreads | 140bps - 182bps | 148bps | |||||||||
Other | Internal models | 21 | Credit spreads | 77bps - 152bps | 123bps | |||||||||
Total non-U.S. corporate | Internal models | $ | 714 | Credit spreads | 77bps - 250bps | 148bps | ||||||||
Derivative assets: | ||||||||||||||
Equity index options | Discounted cash flows | | $ | 11 | Equity index volatility | 6% - 33% | 19% | |||||||
Lapse rate | 2% - 10% | 7% | ||||||||||||
Non-performance risk (counterparty credit risk) | 42bps - 83bps | 69bps | ||||||||||||
Other assets (2) | Cash flow model | $ | 123 | Equity index volatility | 16% - 30% | 23% |
(1) | Unobservable inputs weighted by the relative fair value of the associated instrument for fixed maturity securities, notional for derivative assets and the policyholder account balances associated with the instrument for the net reinsured portion of our variable annuity MRBs. |
(2) | Represents the net reinsured portion of our variable annuity MRBs. |
June 30, 2023 | September 30, 2023 | |||||||||||||||||||||||||||||||
(Amounts in millions) | Total | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Policyholder account balances: | ||||||||||||||||||||||||||||||||
Fixed indexed annuity embedded derivatives | $ | 180 | $ | — | $ | — | $ | 180 | $ | 174 | $ | — | $ | — | $ | 174 | ||||||||||||||||
Indexed universal life embedded derivatives | 15 | — | — | 15 | 14 | — | — | 14 | ||||||||||||||||||||||||
Total policyholder account balances | 195 | — | — | 195 | 188 | — | — | 188 | ||||||||||||||||||||||||
Derivative liabilities: | ||||||||||||||||||||||||||||||||
Interest rate swaps | 472 | — | 472 | — | 884 | — | 884 | — | ||||||||||||||||||||||||
Foreign currency swaps | 1 | — | 1 | — | 1 | — | 1 | — | ||||||||||||||||||||||||
Forward bond purchase commitments | 3 | — | — | 3 | 28 | — | — | 28 | ||||||||||||||||||||||||
Total derivative liabilities | 476 | — | 473 | 3 | 913 | — | 885 | 28 | ||||||||||||||||||||||||
Total liabilities | $ | 671 | $ | — | $ | 473 | $ | 198 | $ | 1,101 | $ | — | $ | 885 | $ | 216 | ||||||||||||||||
December 31, 2022 | ||||||||||||||||
(Amounts in millions) | Total | Level 1 | Level 2 | Level 3 | ||||||||||||
Liabilities | ||||||||||||||||
Policyholder account balances: | ||||||||||||||||
Fixed indexed annuity embedded derivatives | $ | 202 | $ | — | $ | — | $ | 202 | ||||||||
Indexed universal life embedded derivatives | 15 | — | — | 15 | ||||||||||||
Total policyholder account balances | 217 | — | — | 217 | ||||||||||||
Derivative liabilities: | ||||||||||||||||
Interest rate swaps | 522 | — | 522 | — | ||||||||||||
Total derivative liabilities | 522 | — | 522 | — | ||||||||||||
Total liabilities | $ | 739 | $ | — | $ | 522 | $ | 217 | ||||||||
Beginning balance as of April 1, 2023 | Total realized and unrealized (gains) losses | Transfer into Level 3 | Transfer out of Level 3 | Ending balance as of June 30, 2023 | Total (gains) losses attributable to liabilities still held | |||||||||||||||||||||||||||||||||||||||||||
(Amounts in millions) | Included in net (income) | Included in OCI | Purchases | Sales | Issuances | Settlements | Included in net (income) | Included in OCI | ||||||||||||||||||||||||||||||||||||||||
Policyholder account balances: | ||||||||||||||||||||||||||||||||||||||||||||||||
Fixed indexed annuity embedded derivatives | $ | 184 | $ | 8 | $ | — | $ | — | $ | — | $ | — | $ | (11 | ) | $ | — | $ | (1 | ) | $ | 180 | $ | 8 | $ | — | ||||||||||||||||||||||
Indexed universal life embedded derivatives | 15 | (2 | ) | — | — | — | 2 | — | — | — | 15 | (2 | ) | — | ||||||||||||||||||||||||||||||||||
Total policyholder account balances | 199 | 6 | — | — | — | 2 | (11 | ) | — | (1 | ) | 195 | 6 | — | ||||||||||||||||||||||||||||||||||
Derivative liabilities: | ||||||||||||||||||||||||||||||||||||||||||||||||
Forward bond purchase commitments | — | 3 | — | — | — | — | — | — | — | 3 | — | — | ||||||||||||||||||||||||||||||||||||
Total derivative liabilities | — | 3 | — | — | — | — | — | — | — | 3 | — | — | ||||||||||||||||||||||||||||||||||||
Total Level 3 liabilities | $ | 199 | $ | 9 | $ | — | $ | — | $ | — | $ | 2 | $ | (11 | ) | $ | — | $ | (1 | ) | $ | 198 | $ | 6 | $ | — | ||||||||||||||||||||||
Beginning balance as of April 1, 2022 | Total realized and unrealized (gains) losses | Transfer into Level 3 | Transfer out of Level 3 | Ending balance as of June 30, 2022 | Total (gains) losses attributable to liabilities still held | |||||||||||||||||||||||||||||||||||||||||||
(Amounts in millions) | Included in net (income) | Included in OCI | Purchases | Sales | Issuances | Settlements | Included in net (income) | Included in OCI | ||||||||||||||||||||||||||||||||||||||||
Policyholder account balances: | ||||||||||||||||||||||||||||||||||||||||||||||||
Fixed indexed annuity embedded derivatives | $ | 261 | $ | (11 | ) | $ | — | $ | — | $ | — | $ | — | $ | (17 | ) | $ | — | $ | — | $ | 233 | $ | (11 | ) | $ | — | |||||||||||||||||||||
Indexed universal life embedded derivatives | 21 | (8 | ) | — | — | — | 3 | — | — | — | 16 | (8 | ) | — | ||||||||||||||||||||||||||||||||||
Total policyholder account balances | 282 | (19 | ) | — | — | — | 3 | (17 | ) | — | — | 249 | (19 | ) | — | |||||||||||||||||||||||||||||||||
Total Level 3 liabilities | $ | 282 | $ | (19 | ) | $ | — | $ | — | $ | — | $ | 3 | $ | (17 | ) | $ | — | $ | — | $ | 249 | $ | (19 | ) | $ | — | |||||||||||||||||||||
Beginning balance as of July 1, 2023 | Total realized and unrealized (gains) losses | Ending balance as of September 30, 2023 | Total (gains) losses attributable to liabilities still held | |||||||||||||||||||||||||||||||||||||||||||||
(Amounts in millions) | Included in net (income) | Included in OCI | Purchases | Sales | Issuances | Settlements | Transfer into Level 3 | Transfer out of Level 3 | Included in net (income) | Included in OCI | ||||||||||||||||||||||||||||||||||||||
Policyholder account balances: | ||||||||||||||||||||||||||||||||||||||||||||||||
Fixed indexed annuity embedded derivatives | $ | 180 | $ | 6 | $ | — | $ | — | $ | — | $ | — | $ | (11 | ) | $ | — | $ | (1 | ) | $ | 174 | $ | 6 | $ | — | ||||||||||||||||||||||
Indexed universal life embedded derivatives | 15 | (4 | ) | — | — | — | 3 | — | — | — | 14 | (4 | ) | — | ||||||||||||||||||||||||||||||||||
Total policyholder account balances | 195 | 2 | — | — | — | 3 | (11 | ) | — | (1 | ) | 188 | 2 | — | ||||||||||||||||||||||||||||||||||
Derivative liabilities: | ||||||||||||||||||||||||||||||||||||||||||||||||
Forward bond purchase commitments | 3 | 22 | 3 | — | — | — | — | — | — | 28 | 22 | 3 | ||||||||||||||||||||||||||||||||||||
Total derivative liabilities | 3 | 22 | 3 | — | — | — | — | — | — | 28 | 22 | 3 | ||||||||||||||||||||||||||||||||||||
Total Level 3 liabilities | $ | 198 | $ | 24 | $ | 3 | $ | — | $ | — | $ | 3 | $ | (11 | ) | $ | — | $ | (1 | ) | $ | 216 | $ | 24 | $ | 3 | ||||||||||||||||||||||
Beginning balance as of July 1, 2022 | Total realized and unrealized (gains) losses | Ending balance as of September 30, 2022 | Total (gains) losses attributable to liabilities still held | |||||||||||||||||||||||||||||||||||||||||||||
(Amounts in millions) | Included in net (income) | Included in OCI | Purchases | Sales | Issuances | Settlements | Transfer into Level 3 | Transfer out of Level 3 | Included in net (income) | Included in OCI | ||||||||||||||||||||||||||||||||||||||
Policyholder account balances: | ||||||||||||||||||||||||||||||||||||||||||||||||
Fixed indexed annuity embedded derivatives | $ | 233 | $ | 5 | $ | — | $ | — | $ | — | $ | — | $ | (18 | ) | $ | — | $ | (1 | ) | $ | 219 | $ | 5 | $ | — | ||||||||||||||||||||||
Indexed universal life embedded derivatives | 16 | (4 | ) | — | — | — | 3 | — | — | — | 15 | (4 | ) | — | ||||||||||||||||||||||||||||||||||
Total policyholder account balances | 249 | 1 | — | — | — | 3 | (18 | ) | — | (1 | ) | 234 | 1 | — | ||||||||||||||||||||||||||||||||||
Total Level 3 liabilities | $ | 249 | $ | 1 | $ | — | $ | — | $ | — | $ | 3 | $ | (18 | ) | $ | — | $ | (1 | ) | $ | 234 | $ | 1 | $ | — | ||||||||||||||||||||||
Beginning balance as of January 1, 2023 | Total realized and unrealized (gains) losses | Ending balance as of September 30, 2023 | Total (gains) losses attributable to liabilities still held | |||||||||||||||||||||||||||||||||||||||||||||
(Amounts in millions) | Included in net (income) | Included in OCI | Purchases | Sales | Issuances | Settlements | Transfer into Level 3 | Transfer out of Level 3 | Included in net (income) | Included in OCI | ||||||||||||||||||||||||||||||||||||||
Policyholder account balances: | ||||||||||||||||||||||||||||||||||||||||||||||||
Fixed indexed annuity embedded derivatives | $ | 202 | $ | 16 | $ | — | $ | — | $ | — | $ | — | $ | (41 | ) | $ | — | $ | (3 | ) | $ | 174 | $ | 16 | $ | — | ||||||||||||||||||||||
Indexed universal life embedded derivatives | 15 | (11 | ) | — | — | — | 10 | — | — | — | 14 | (11 | ) | — | ||||||||||||||||||||||||||||||||||
Total policyholder account balances | 217 | 5 | — | — | — | 10 | (41 | ) | — | (3 | ) | 188 | 5 | — | ||||||||||||||||||||||||||||||||||
Derivative liabilities: | ||||||||||||||||||||||||||||||||||||||||||||||||
Forward bond purchase commitments | — | 25 | 3 | — | — | — | — | — | — | 28 | 25 | 3 | ||||||||||||||||||||||||||||||||||||
Total derivative liabilities | — | 25 | 3 | — | — | — | — | — | — | 28 | 25 | 3 | ||||||||||||||||||||||||||||||||||||
Total Level 3 liabilities | $ | 217 | $ | 30 | $ | 3 | $ | — | $ | — | $ | 10 | $ | (41 | ) | $ | — | $ | (3 | ) | $ | 216 | $ | 30 | $ | 3 | ||||||||||||||||||||||
Beginning balance as of January 1, 2023 | Total realized and unrealized (gains) losses | Transfer into Level 3 | Transfer out of Level 3 | Ending balance as of June 30, 2023 | Total (gains) losses attributable to liabilities still held | Beginning balance as of January 1, 2022 | Total realized and unrealized (gains) losses | Ending balance as of September 30, 2022 | Total (gains) losses attributable to liabilities still held | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Amounts in millions) | Included in net (income) | Included in OCI | Purchases | Sales | Issuances | Settlements | Included in net (income) | Included in OCI | Included in net (income) | Included in OCI | Purchases | Sales | Issuances | Settlements | Transfer into Level 3 | Transfer out of Level 3 | Included in net (income) | Included in OCI | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Policyholder account balances: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed indexed annuity embedded derivatives | $ | 202 | $ | 10 | $ | — | $ | — | $ | — | $ | — | $ | (30 | ) | $ | — | $ | (2 | ) | $ | 180 | $ | 10 | $ | — | $ | 294 | $ | (18 | ) | $ | — | $ | — | $ | — | $ | — | $ | (55 | ) | $ | — | $ | (2 | ) | $ | 219 | $ | (18 | ) | $ | — | ||||||||||||||||||||||||||||||||||||||||||
Indexed universal life embedded derivatives | 15 | (7 | ) | — | — | — | 7 | — | — | — | 15 | (7 | ) | — | 25 | (23 | ) | — | — | — | 13 | — | — | — | 15 | (23 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total policyholder account balances | 217 | 3 | — | — | — | 7 | (30 | ) | — | (2 | ) | 195 | 3 | — | 319 | (41 | ) | — | — | — | 13 | (55 | ) | — | (2 | ) | 234 | (41 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative liabilities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Forward bond purchase commitments | — | 3 | — | — | — | — | — | — | — | 3 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total derivative liabilities | — | 3 | — | — | — | — | — | — | — | 3 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Level 3 liabilities | $ | 217 | $ | 6 | $ | — | $ | — | $ | — | $ | 7 | $ | (30 | ) | $ | — | $ | (2 | ) | $ | 198 | $ | 3 | $ | — | $ | 319 | $ | (41 | ) | $ | — | $ | — | $ | — | $ | 13 | $ | (55 | ) | $ | — | $ | (2 | ) | $ | 234 | $ | (41 | ) | $ | — | ||||||||||||||||||||||||||||||||||||||||||
Beginning balance as of January 1, 2022 | Total realized and unrealized (gains) losses | Transfer into Level 3 | Transfer out of Level 3 | Ending balance as of June 30, 2022 | Total (gains) losses attributable to liabilities still held | |||||||||||||||||||||||||||||||||||||||||||
(Amounts in millions) | Included in net (income) | Included in OCI | Purchases | Sales | Issuances | Settlements | Included in net (income) | Included in OCI | ||||||||||||||||||||||||||||||||||||||||
Policyholder account balances: | ||||||||||||||||||||||||||||||||||||||||||||||||
Fixed indexed annuity embedded derivatives | $ | 294 | $ | (23 | ) | $ | — | $ | — | $ | — | $ | — | $ | (37 | ) | $ | — | $ | (1 | ) | $ | 233 | $ | (23 | ) | $ | — | ||||||||||||||||||||
Indexed universal life embedded derivatives | 25 | (19 | ) | — | — | — | 10 | — | — | — | 16 | (19 | ) | — | ||||||||||||||||||||||||||||||||||
Total policyholder account balances | 319 | (42 | ) | — | — | — | 10 | (37 | ) | — | (1 | ) | 249 | (42 | ) | — | ||||||||||||||||||||||||||||||||
Total Level 3 liabilities | $ | 319 | $ | (42 | ) | $ | — | $ | — | $ | — | $ | 10 | $ | (37 | ) | $ | — | $ | (1 | ) | $ | 249 | $ | (42 | ) | $ | — | ||||||||||||||||||||
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
(Amounts in millions) | 2023 | 2022 | 2023 | 2022 | ||||||||||||
Total realized and unrealized (gains) losses included in net (income): | ||||||||||||||||
Net investment income | $ | — | $ | — | $ | — | $ | — | ||||||||
Net investment (gains) losses | 9 | (19 | ) | 6 | (42 | ) | ||||||||||
Total | $ | 9 | $ | (19 | ) | $ | 6 | $ | (42 | ) | ||||||
Total (gains) losses included in net (income) attributable to liabilities still held: | ||||||||||||||||
Net investment income | $ | — | $ | — | $ | — | $ | — | ||||||||
Net investment (gains) losses | 6 | (19 | ) | 3 | (42 | ) | ||||||||||
Total | $ | 6 | $ | (19 | ) | $ | 3 | $ | (42 | ) | ||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
(Amounts in millions) | 2023 | 2022 | 2023 | 2022 | ||||||||||||
Total realized and unrealized (gains) losses included in net (income): | ||||||||||||||||
Net investment income | $ | — | $ | — | $ | — | $ | — | ||||||||
Net investment (gains) losses | 24 | 1 | 30 | (41 | ) | |||||||||||
Total | $ | 24 | $ | 1 | $ | 30 | $ | (41 | ) | |||||||
Total (gains) losses included in net (income) attributable to liabilities still held: | ||||||||||||||||
Net investment income | $ | — | $ | — | $ | — | $ | — | ||||||||
Net investment (gains) losses | 24 | 1 | 30 | (41 | ) | |||||||||||
Total | $ | 24 | $ | 1 | $ | 30 | $ | (41 | ) | |||||||
(Amounts in millions) | Valuation technique | Fair value | Unobservable input | Range | Weighted-average (1) | |||||||||||
Policyholder account balances: | ||||||||||||||||
Fixed | Option budget method | $ | 180 | Expected future interest credited | —% - 3% | 2% | ||||||||||
Indexed universal life embedded | Option budget method | $ | 15 | Expected future interest credited | 3% - 13% | 5% | ||||||||||
Market risk benefits: (2) | ||||||||||||||||
GMWB withdrawal utilization rate | —% - 61% | 49% | ||||||||||||||
Non-performance risk (credit spreads) | 42bps - 83bps | 69bps | ||||||||||||||
Fixed indexed annuities | Cash flow model | $ | 57 | Expected future interest credited | 1% - 3% | 1% | ||||||||||
Lapse rate | 2% - 11% | 5% | ||||||||||||||
GMWB withdrawal utilization rate | 61% - | 78% | ||||||||||||||
Non-performance risk (credit spreads) | 42bps - | 69bps | ||||||||||||||
Variable annuities | Cash flow model | $ | 572 | Equity index volatility | 14% - 30% | 22% |
(Amounts in millions) | Valuation technique | Fair value | Unobservable input | Range | Weighted-average (1) | |||||||
Policyholder account balances: | ||||||||||||
Fixed indexed annuity embedded derivatives | Option budget method | $ | 174 | Expected future interest credited | 1% - 4% | 2% | ||||||
Indexed universal life embedded derivatives | Option budget method | $ | 14 | Expected future interest credited | 3% - 13% | 5% | ||||||
Market risk benefits: (2) | ||||||||||||
GMWB withdrawal utilization rate | — % - 63% | 51% | ||||||||||
Non-performance risk (credit spreads) | 42bps - 83bps | 69bps | ||||||||||
Fixed indexed annuities | Cash flow model | $ | 38 | Expected future interest credited | 1% - 4% | 2% | ||||||
Lapse rate | 2% - 11% | 5% | ||||||||||
GMWB withdrawal utilization rate | 62% - 89% | 78% | ||||||||||
Non-performance risk (credit spreads) | 42bps - 83bps | 69bps | ||||||||||
Variable annuities | Cash flow model | $ | 502 | Equity index volatility | 16% - 30% | 23% | ||||||
Derivative liabilities: | ||||||||||||
Forward bond purchase commitments | Discounted cash flows | $ | 28 | Counterparty financing spreads | 35bps | Not applicable |
(1) | Unobservable inputs weighted by the policyholder account balances associated with the instrument. |
(2) | Refer to note 13 for additional details related to MRBs. |
June 30, 2023 | ||||||||||||||||||||||||
Notional amount | Carrying amount | Fair value | ||||||||||||||||||||||
(Amounts in millions) | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||
Assets: | ||||||||||||||||||||||||
Commercial mortgage loans, net | (1) | $ | 6,852 | $ | 6,274 | $ | — | $ | — | $ | 6,274 | |||||||||||||
Bank loan investments | (1) | 518 | 500 | — | — | 500 | ||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||
Long-term borrowings | (1) | 1,601 | 1,358 | — | 1,358 | — | ||||||||||||||||||
Investment contracts | (1) | 6,093 | 6,027 | — | — | 6,027 | ||||||||||||||||||
Other firm commitments: | ||||||||||||||||||||||||
Commitments to fund bank loan investments | $ | 153 | — | — | — | — | — | |||||||||||||||||
Ordinary course of business lending commitments | 17 | — | — | — | — | — |
September 30, 2023 | ||||||||||||||||||||||||
Notional amount | Carrying amount | Fair value | ||||||||||||||||||||||
(Amounts in millions) | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||
Assets: | ||||||||||||||||||||||||
Commercial mortgage loans, net | (1 | ) | $ | 6,793 | $ | 6,121 | $ | — | $ | — | $ | 6,121 | ||||||||||||
Bank loan investments | (1 | ) | 530 | 517 | — | — | 517 | |||||||||||||||||
Liabilities: | ||||||||||||||||||||||||
Long-term borrowings | (1 | ) | 1,602 | 1,359 | — | 1,359 | — | |||||||||||||||||
Investment contracts | (1 | ) | 5,605 | 5,461 | — | — | 5,461 | |||||||||||||||||
Commitments to fund investments: | ||||||||||||||||||||||||
Bank loan investments | $ | 136 | — | — | — | — | — | |||||||||||||||||
Private placement investments | 12 | — | — | — | — | — | ||||||||||||||||||
Commercial mortgage loans | 9 | — | — | — | — | — |
(1) | These financial instruments do not have notional amounts. |
December 31, 2022 | ||||||||||||||||||||||||
Notional amount | Carrying amount | Fair value | ||||||||||||||||||||||
(Amounts in millions) | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||
Assets: | ||||||||||||||||||||||||
Commercial mortgage loans, net | (1) | $ | 7,010 | $ | 6,345 | $ | — | $ | — | $ | 6,345 | |||||||||||||
Bank loan investments | (1) | 467 | 474 | — | — | 474 | ||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||
Long-term borrowings | (1) | 1,611 | 1,346 | — | 1,346 | — | ||||||||||||||||||
Investment contracts | (1) | 6,794 | 7,171 | — | — | 7,171 | ||||||||||||||||||
Other firm commitments: | ||||||||||||||||||||||||
Commitments to fund bank loan investments | $ | 70 | — | — | — | — | — | |||||||||||||||||
Ordinary course of business lending commitments | 24 | — | — | — | — | — |
December 31, 2022 | ||||||||||||||||||||||||
Notional amount | Carrying amount | Fair value | ||||||||||||||||||||||
(Amounts in millions) | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||
Assets: | ||||||||||||||||||||||||
Commercial mortgage loans, net | (1 | ) | $ | 7,010 | $ | 6,345 | $ | — | $ | — | $ | 6,345 | ||||||||||||
Bank loan investments | (1 | ) | 467 | 474 | — | — | 474 | |||||||||||||||||
Liabilities: | ||||||||||||||||||||||||
Long-term borrowings | (1 | ) | 1,611 | 1,346 | — | 1,346 | — | |||||||||||||||||
Investment contracts | (1 | ) | 6,794 | 7,171 | — | — | 7,171 | |||||||||||||||||
Commitments to fund investments: | ||||||||||||||||||||||||
Bank loan investments | $ | 70 | — | — | — | — | — | |||||||||||||||||
Private placement investments | 19 | — | — | — | — | — | ||||||||||||||||||
Commercial mortgage loans | 5 | — | — | — | — | — |
(1) | These financial instruments do not have notional amounts. |
June 30, 2023 | December 31, 2022 | September 30, 2023 | December 31, 2022 | |||||||||||||||||||||||||||||
(Amounts in millions) | Carrying value | Commitments to fund | Carrying value | Commitments to fund | Carrying value | Commitments to fund | Carrying value | Commitments to fund | ||||||||||||||||||||||||
Limited partnerships accounted for at NAV: | ||||||||||||||||||||||||||||||||
Private equity funds (1) | $ | 1,821 | $ | 1,166 | $ | 1,647 | $ | 1,107 | $ | 1,907 | $ | 1,156 | $ | 1,647 | $ | 1,107 | ||||||||||||||||
Real estate funds (2) | 91 | 70 | 82 | 79 | 97 | 88 | 82 | 79 | ||||||||||||||||||||||||
Infrastructure funds (3) | 70 | 22 | 63 | 29 | 72 | 19 | 63 | 29 | ||||||||||||||||||||||||
Total limited partnerships accounted for at NAV | 1,982 | 1,258 | 1,792 | 1,215 | 2,076 | 1,263 | 1,792 | 1,215 | ||||||||||||||||||||||||
Limited partnerships accounted for at fair value | 21 | 1 | 24 | 1 | 20 | 1 | 24 | 1 | ||||||||||||||||||||||||
Limited partnerships accounted for under equity method of accounting | 582 | 140 | 515 | 149 | 603 | 144 | 515 | 149 | ||||||||||||||||||||||||
Total | $ | 2,585 | $ | 1,399 | $ | 2,331 | $ | 1,365 | $ | 2,699 | $ | 1,408 | $ | 2,331 | $ | 1,365 | ||||||||||||||||
(1) | This class employs various investment strategies such as leveraged buyout, growth equity, venture capital and mezzanine financing, generally investing in debt or equity positions directly in companies or assets of various sizes across diverse industries globally, primarily concentrated in North America. |
(2) | This class invests in real estate in North America, Europe and Asia via direct property ownership, joint ventures, mortgages and investments in debt and equity instruments. |
(3) | This class invests in the debt or equity of cash flow generating assets diversified across a variety of industries, including transportation, energy infrastructure, renewable power, social infrastructure, power generation, water, telecommunications and other regulated entities globally. |
September 30, 2023 | ||||||||||||||||||||
(Amounts in millions) | Long- term care insurance | Life insurance | Fixed annuities | Variable annuities | Total | |||||||||||||||
Balance as of January 1 | $ | 935 | $ | 1,080 | $ | 57 | $ | 113 | $ | 2,185 | ||||||||||
Costs deferred | 1 | — | — | — | 1 | |||||||||||||||
Amortization | (43 | ) | (106 | ) | (9 | ) | (12 | ) | (170 | ) | ||||||||||
Balance as of September 30 | $ | 893 | $ | 974 | $ | 48 | $ | 101 | 2,016 | |||||||||||
Enact segment | 26 | |||||||||||||||||||
Total deferred acquisition costs | $ | 2,042 | ||||||||||||||||||
June 30, 2023 | ||||||||||||||||||||
(Amounts in millions) | Long-term care insurance | Life insurance | Fixed annuities | Variable annuities | Total | |||||||||||||||
Balance as of January 1 | $ | 935 | $ | 1,080 | $ | 57 | $ | 113 | $ | 2,185 | ||||||||||
Costs deferred | 1 | — | — | — | 1 | |||||||||||||||
Amortization | (29 | ) | (73 | ) | (6 | ) | (8 | ) | (116 | ) | ||||||||||
Balance as of June 30 | $ | 907 | $ | 1,007 | $ | 51 | $ | 105 | 2,070 | |||||||||||
Enact segment | 26 | |||||||||||||||||||
Total deferred acquisition costs | $ | 2,096 | ||||||||||||||||||
December 31, 2022 | December 31, 2022 | |||||||||||||||||||||||||||||||||||||||
(Amounts in millions) | Long-term care insurance | Life insurance | Fixed annuities | Variable annuities | Total | Long- term care insurance | Life insurance | Fixed annuities | Variable annuities | Total | ||||||||||||||||||||||||||||||
Balance as of January 1 | $ | 989 | $ | 1,271 | $ | 70 | $ | 131 | $ | 2,461 | $ | 989 | $ | 1,271 | $ | 70 | $ | 131 | $ | 2,461 | ||||||||||||||||||||
Costs deferred | 6 | — | — | — | 6 | 6 | — | — | — | 6 | ||||||||||||||||||||||||||||||
Amortization | (60 | ) | (191 | ) | (13 | ) | (18 | ) | (282 | ) | (60 | ) | (191 | ) | (13 | ) | (18 | ) | (282 | ) | ||||||||||||||||||||
Balance as of December 31 | $ | 935 | $ | 1,080 | $ | 57 | $ | 113 | 2,185 | $ | 935 | $ | 1,080 | $ | 57 | $ | 113 | 2,185 | ||||||||||||||||||||||
Enact segment | 26 | 26 | ||||||||||||||||||||||||||||||||||||||
Total deferred acquisition costs | $ | 2,211 | $ | 2,211 | ||||||||||||||||||||||||||||||||||||
December 31, 2021 | December 31, 2021 | |||||||||||||||||||||||||||||||||||||||
(Amounts in millions) | Long-term care insurance | Life insurance | Fixed annuities | Variable annuities | Total | Long- term care insurance | Life insurance | Fixed annuities | Variable annuities | Total | ||||||||||||||||||||||||||||||
Balance as of January 1 | $ | 1,043 | $ | 1,501 | $ | 85 | $ | 151 | $ | 2,780 | $ | 1,043 | $ | 1,501 | $ | 85 | $ | 151 | $ | 2,780 | ||||||||||||||||||||
Costs deferred | 9 | — | — | — | 9 | 9 | — | — | — | 9 | ||||||||||||||||||||||||||||||
Amortization | (63 | ) | (230 | ) | (15 | ) | (20 | ) | (328 | ) | (63 | ) | (230 | ) | (15 | ) | (20 | ) | (328 | ) | ||||||||||||||||||||
Balance as of December 31 | $ | 989 | $ | 1,271 | $ | 70 | $ | 131 | 2,461 | $ | 989 | $ | 1,271 | $ | 70 | $ | 131 | 2,461 | ||||||||||||||||||||||
Enact segment | 27 | 27 | ||||||||||||||||||||||||||||||||||||||
Total deferred acquisition costs | $ | 2,488 | $ | 2,488 | ||||||||||||||||||||||||||||||||||||
September 30, 2023 | December 31, 2022 | |||||||||||||||
(Amounts in millions) | Gross carrying amount | Accumulated amortization | Gross carrying amount | Accumulated amortization | ||||||||||||
PVFP | $ | 2,146 | $ | (2,035 | ) | $ | 2,146 | $ | (2,026 | ) | ||||||
Capitalized software | 508 | (444 | ) | 482 | (427 | ) | ||||||||||
Deferred sales inducements to contractholders | 317 | (295 | ) | 317 | (291 | ) | ||||||||||
Other | 6 | (4 | ) | 6 | (4 | ) | ||||||||||
Total | $ | 2,977 | $ | (2,778 | ) | $ | 2,951 | $ | (2,748 | ) | ||||||
June 30, 2023 | December 31, 2022 | |||||||||||||||
(Amounts in millions) | Gross carrying amount | Accumulated amortization | Gross carrying amount | Accumulated amortization | ||||||||||||
PVFP | $ | 2,146 | $ | (2,032 | ) | $ | 2,146 | $ | (2,026 | ) | ||||||
Capitalized software | 500 | (438 | ) | 482 | (427 | ) | ||||||||||
Deferred sales inducements to contractholders | 317 | (294 | ) | 317 | (291 | ) | ||||||||||
Other | 6 | (4 | ) | 6 | (4 | ) | ||||||||||
Total | $ | 2,969 | $ | (2,768 | ) | $ | 2,951 | $ | (2,748 | ) | ||||||
(Amounts in millions) | June 30, 2023 | December 31, 2022 | December 31, 2021 | September 30, 2023 | December 31, 2022 | December 31, 2021 | ||||||||||||||||||
Beginning balance as of January 1 | $ | 120 | $ | 134 | $ | 154 | $ | 120 | $ | 134 | $ | 154 | ||||||||||||
Costs deferred | — | — | — | — | — | — | ||||||||||||||||||
Amortization | (6 | ) | (14 | ) | (20 | ) | (9 | ) | (14 | ) | (20 | ) | ||||||||||||
Ending balance | $ | 114 | $ | 120 | $ | 134 | $ | 111 | $ | 120 | $ | 134 | ||||||||||||
(Amounts in millions) | June 30, 2023 | December 31, 2022 | September 30, 2023 | December 31, 2022 | ||||||||||||
Long-term care insurance | $ | 42,661 | $ | 41,457 | $ | 38,928 | $ | 41,457 | ||||||||
Life insurance | 1,675 | 1,820 | 1,645 | 1,820 | ||||||||||||
Fixed annuities | 11,905 | 11,923 | 10,965 | 11,923 | ||||||||||||
Total long-duration insurance contracts | 56,241 | 55,200 | 51,538 | 55,200 | ||||||||||||
Deferred profit liability | 120 | 115 | 126 | 115 | ||||||||||||
Cost of reinsurance | 82 | 92 | 76 | 92 | ||||||||||||
Total future policy benefits | $ | 56,443 | $ | 55,407 | $ | 51,740 | $ | 55,407 | ||||||||
June 30, 2023 | ||||||||||||
(Dollar amounts in millions) | Long-term care insurance | Life insurance (1) | Fixed annuities | |||||||||
Present value of expected net premiums: | ||||||||||||
Beginning balance as of January 1 | $ | 19,895 | $ | 4,083 | $ | — | ||||||
Beginning balance, at original discount rate | $ | 19,959 | $ | 3,922 | $ | — | ||||||
Effect of changes in cash flow assumptions | (148 | ) | — | — | ||||||||
Effect of actual variances from expected experience | (79 | ) | 45 | — | ||||||||
Adjusted beginning balance | 19,732 | 3,967 | — | |||||||||
Issuances | 1 | — | 22 | |||||||||
Interest accrual | 507 | 110 | — | |||||||||
Net premiums collected (2) | (976 | ) | (223 | ) | (22 | ) | ||||||
Derecognition (lapses and withdrawals) | — | — | — | |||||||||
Other | — | — | — | |||||||||
Ending balance, at original discount rate | 19,264 | 3,854 | — | |||||||||
Effect of changes in discount rate assumptions | 13 | 194 | — | |||||||||
Ending balance as of June 30 | $ | 19,277 | $ | 4,048 | $ | — | ||||||
Present value of expected future policy benefits: | ||||||||||||
Beginning balance as of January 1 | $ | 61,352 | $ | 5,556 | $ | 11,923 | ||||||
Beginning balance, at original discount rate | $ | 61,148 | $ | 5,374 | $ | 10,300 | ||||||
Effect of changes in cash flow assumptions | (165 | ) | — | — | ||||||||
Effect of actual variances from expected experience | (34 | ) | 62 | (1 | ) | |||||||
Adjusted beginning balance | 60,949 | 5,436 | 10,299 | |||||||||
Issuances | 1 | — | 17 | |||||||||
Interest accrual | 1,667 | 143 | 334 | |||||||||
Benefit payments | (1,782 | ) | (476 | ) | (505 | ) | ||||||
Derecognition (lapses and withdrawals) | — | — | — | |||||||||
Other | — | (5 | ) | 1 | ||||||||
Ending balance, at original discount rate | 60,835 | 5,098 | 10,146 | |||||||||
Effect of changes in discount rate assumptions | 1,103 | 192 | 1,759 | |||||||||
Ending balance as of June 30 | $ | 61,938 | $ | 5,290 | $ | 11,905 | ||||||
Net liability for future policy benefits, before flooring adjustments | $ | 42,661 | $ | 1,242 | $ | 11,905 | ||||||
Flooring adjustments (3) | — | 433 | — | |||||||||
Net liability for future policy benefits | 42,661 | 1,675 | 11,905 | |||||||||
Less: reinsurance recoverable | 7,408 | 787 | 9,012 | |||||||||
Net liability for future policy benefits, net of reinsurance recoverable | $ | 35,253 | $ | 888 | $ | 2,893 | ||||||
Weighted-average liability duration (years) | 14.3 | 6.0 | 11.0 |
September 30, 2023 | ||||||||||||
(Dollar amounts in millions) | Long-term care insurance | Life insurance (1) | Fixed annuities | |||||||||
Present value of expected net premiums: | ||||||||||||
Beginning balance as of January 1 | $ | 19,895 | $ | 4,083 | $ | — | ||||||
Beginning balance, at original discount rate | $ | 19,959 | $ | 3,922 | $ | — | ||||||
Effect of changes in cash flow assumptions | (119 | ) | — | — | ||||||||
Effect of actual variances from expected experience | (156 | ) | 38 | — | ||||||||
Adjusted beginning balance | 19,684 | 3,960 | — | |||||||||
Issuances | 1 | — | 33 | |||||||||
Interest accrual | 754 | 164 | — | |||||||||
Net premiums collected (2) | (1,470 | ) | (330 | ) | (33 | ) | ||||||
Derecognition (lapses and withdrawals) | — | — | — | |||||||||
Other | — | — | — | |||||||||
Ending balance, at original discount rate | 18,969 | 3,794 | — | |||||||||
Effect of changes in discount rate assumptions | (765 | ) | (31 | ) | — | |||||||
Ending balance as of September 30 | $ | 18,204 | $ | 3,763 | $ | — | ||||||
Present value of expected future policy benefits: | ||||||||||||
Beginning balance as of January 1 | $ | 61,352 | $ | 5,556 | $ | 11,923 | ||||||
Beginning balance, at original discount rate | $ | 61,148 | $ | 5,374 | $ | 10,300 | ||||||
Effect of changes in cash flow assumptions | (141 | ) | — | — | ||||||||
Effect of actual variances from expected experience | 8 | 56 | (35 | ) | ||||||||
Adjusted beginning balance | 61,015 | 5,430 | 10,265 | |||||||||
Issuances | 2 | — | 26 | |||||||||
Interest accrual | 2,498 | 212 | 500 | |||||||||
Benefit payments | (2,657 | ) | (628 | ) | (751 | ) | ||||||
Derecognition (lapses and withdrawals) | — | — | — | |||||||||
Other | (1 | ) | (5 | ) | 5 | |||||||
Ending balance, at original discount rate | 60,857 | 5,009 | 10,045 | |||||||||
Effect of changes in discount rate assumptions | (3,725 | ) | 5 | 920 | ||||||||
Ending balance as of September 30 | $ | 57,132 | $ | 5,014 | $ | 10,965 | ||||||
Net liability for future policy benefits, before flooring adjustments | $ | 38,928 | $ | 1,251 | $ | 10,965 | ||||||
Flooring adjustments (3) | — | 394 | — | |||||||||
Net liability for future policy benefits | 38,928 | 1,645 | 10,965 | |||||||||
Less: reinsurance recoverable | 6,780 | 772 | 8,280 | |||||||||
Net liability for future policy benefits, after reinsurance recoverable | $ | 32,148 | $ | 873 | $ | 2,685 | ||||||
Weighted-average liability duration (years) | 13.6 | 5.7 | 10.3 |
(1) | The components of the life insurance rollforward exclude flooring. |
(2) | Net premiums collected represents the portion of gross premiums collected from policyholders that is used to fund expected benefit payments. |
(3) | Flooring adjustments are necessary when a cohort’s present value of future net premiums exceeds the present value of future benefits. The flooring adjustment ensures that the liability for future policy benefits for each cohort is not less than zero. This adjustment is most prevalent in our term life insurance products due to their product design of a level premium period followed by annual premium rate increases. |
December 31, 2022 | ||||||||||||
(Dollar amounts in millions) | Long-term care insurance | Life insurance (1) | Fixed annuities | |||||||||
Present value of expected net premiums: | ||||||||||||
Beginning balance as of January 1 | $ | 25,247 | $ | 5,414 | $ | — | ||||||
Beginning balance, at original discount rate | $ | 20,717 | $ | 4,086 | $ | — | ||||||
Effect of changes in cash flow assumptions | 102 | — | — | |||||||||
Effect of actual variances from expected experience | 82 | 69 | — | |||||||||
Adjusted beginning balance | 20,901 | 4,155 | — | |||||||||
Issuances | 8 | — | 50 | |||||||||
Interest accrual | 1,061 | 226 | — | |||||||||
Net premiums collected (2) | (2,011 | ) | (459 | ) | (50 | ) | ||||||
Derecognition (lapses and withdrawals) | — | — | — | |||||||||
Other | — | — | — | |||||||||
Ending balance, at original discount rate | 19,959 | 3,922 | — | |||||||||
Effect of changes in discount rate assumptions | (64 | ) | 161 | — | ||||||||
Ending balance as of December 31 | $ | 19,895 | $ | 4,083 | $ | — | ||||||
Present value of expected future policy benefits: | ||||||||||||
Beginning balance as of January 1 | $ | 85,338 | $ | 7,157 | $ | 17,039 | ||||||
Beginning balance, at original discount rate | $ | 61,146 | $ | 5,814 | $ | 11,012 | ||||||
Effect of changes in cash flow assumptions | (251 | ) | — | — | ||||||||
Effect of actual variances from expected experience | (31 | ) | 106 | (24 | ) | |||||||
Adjusted beginning balance | 60,864 | 5,920 | 10,988 | |||||||||
Issuances | 10 | — | 43 | |||||||||
Interest accrual | 3,364 | 304 | 690 | |||||||||
Benefit payments | (3,090 | ) | (851 | ) | (1,072 | ) | ||||||
Derecognition (lapses and withdrawals) | — | — | — | |||||||||
Reinsurance transactions (3) | — | — | (352 | ) | ||||||||
Other | — | 1 | 3 | |||||||||
Ending balance, at original discount rate | 61,148 | 5,374 | 10,300 | |||||||||
Effect of changes in discount rate assumptions | 204 | 182 | 1,623 | |||||||||
Ending balance as of December 31 | $ | 61,352 | $ | 5,556 | $ | 11,923 | ||||||
Net liability for future policy benefits, before flooring adjustments | $ | 41,457 | $ | 1,473 | $ | 11,923 | ||||||
Flooring adjustments (4) | — | 347 | — | |||||||||
Net liability for future policy benefits | 41,457 | 1,820 | 11,923 | |||||||||
Less: reinsurance recoverable | 7,270 | 873 | 8,957 | |||||||||
Net liability for future policy benefits, net of reinsurance recoverable | $ | 34,187 | $ | 947 | $ | 2,966 | ||||||
Weighted-average liability duration (years) | 14.5 | 6.0 | 10.9 |
December 31, 2022 | ||||||||||||
(Dollar amounts in millions) | Long-term care insurance | Life insurance (1) | Fixed annuities | |||||||||
Present value of expected net premiums: | ||||||||||||
Beginning balance as of January 1 | $ | 25,247 | $ | 5,414 | $ | — | ||||||
Beginning balance, at original discount rate | $ | 20,717 | $ | 4,086 | $ | — | ||||||
Effect of changes in cash flow assumptions | 102 | — | — | |||||||||
Effect of actual variances from expected experience | 82 | 69 | — | |||||||||
Adjusted beginning balance | 20,901 | 4,155 | — | |||||||||
Issuances | 8 | — | 50 | |||||||||
Interest accrual | 1,061 | 226 | — | |||||||||
Net premiums collected (2) | (2,011 | ) | (459 | ) | (50 | ) | ||||||
Derecognition (lapses and withdrawals) | — | — | — | |||||||||
Other | — | — | — | |||||||||
Ending balance, at original discount rate | 19,959 | 3,922 | — | |||||||||
Effect of changes in discount rate assumptions | (64 | ) | 161 | — | ||||||||
Ending balance as of December 31 | $ | 19,895 | $ | 4,083 | $ | — | ||||||
Present value of expected future policy benefits: | ||||||||||||
Beginning balance as of January 1 | $ | 85,338 | $ | 7,157 | $ | 17,039 | ||||||
Beginning balance, at original discount rate | $ | 61,146 | $ | 5,814 | $ | 11,012 | ||||||
Effect of changes in cash flow assumptions | (251 | ) | — | — | ||||||||
Effect of actual variances from expected experience | (31 | ) | 106 | (24 | ) | |||||||
Adjusted beginning balance | 60,864 | 5,920 | 10,988 | |||||||||
Issuances | 10 | — | 43 | |||||||||
Interest accrual | 3,364 | 304 | 690 | |||||||||
Benefit payments | (3,090 | ) | (851 | ) | (1,072 | ) | ||||||
Derecognition (lapses and withdrawals) | — | — | — | |||||||||
Reinsurance transactions (3) | — | — | (352 | ) | ||||||||
Other | — | 1 | 3 | |||||||||
Ending balance, at original discount rate | 61,148 | 5,374 | 10,300 | |||||||||
Effect of changes in discount rate assumptions | 204 | 182 | 1,623 | |||||||||
Ending balance as of December 31 | $ | 61,352 | $ | 5,556 | $ | 11,923 | ||||||
Net liability for future policy benefits, before flooring adjustments | $ | 41,457 | $ | 1,473 | $ | 11,923 | ||||||
Flooring adjustments (4) | — | 347 | — | |||||||||
Net liability for future policy benefits | 41,457 | 1,820 | 11,923 | |||||||||
Less: reinsurance recoverable | 7,270 | 873 | 8,957 | |||||||||
Net liability for future policy benefits, after reinsurance recoverable | $ | 34,187 | $ | 947 | $ | 2,966 | ||||||
Weighted-average liability duration (years) | 14.5 | 6.0 | 10.9 |
(1) | The components of the life insurance rollforward exclude flooring. |
(2) | Net premiums collected represents the portion of gross premiums collected from policyholders that is used to fund expected benefit payments. |
(3) | Related to a third-party recapture of certain single premium immediate annuity contracts in 2022. |
(4) |
December 31, 2021 | ||||||||||||
(Dollar amounts in millions) | Long- term care insurance | Life insurance (1) | Fixed annuities | |||||||||
Present value of expected net premiums: | ||||||||||||
Beginning balance as of January 1 | $ | 26,283 | $ | 5,451 | $ | — | ||||||
Beginning balance, at original discount rate | $ | 20,600 | $ | 3,916 | $ | — | ||||||
Effect of changes in cash flow assumptions | 1,615 | 228 | — | |||||||||
Effect of actual variances from expected experience | (444 | ) | 165 | — | ||||||||
Adjusted beginning balance | 21,771 | 4,309 | — | |||||||||
Issuances | 23 | — | 47 | |||||||||
Interest accrual | 1,053 | 221 | — | |||||||||
Net premiums collected (2) | (2,130 | ) | (444 | ) | (47 | ) | ||||||
Derecognition (lapses and withdrawals) | — | — | — | |||||||||
Other | — | — | — | |||||||||
Ending balance, at original discount rate | 20,717 | 4,086 | — | |||||||||
Effect of changes in discount rate assumptions | 4,530 | 1,328 | — | |||||||||
Ending balance as of December 31 | $ | 25,247 | $ | 5,414 | $ | — | ||||||
Present value of expected future policy benefits: | ||||||||||||
Beginning balance as of January 1 | $ | 89,645 | $ | 7,821 | $ | 18,637 | ||||||
Beginning balance, at original discount rate | $ | 59,709 | $ | 6,062 | $ | 11,358 | ||||||
Effect of changes in cash flow assumptions | 1,678 | 252 | 27 | |||||||||
Effect of actual variances from expected experience | (565 | ) | 190 | (24 | ) | |||||||
Adjusted beginning balance | 60,822 | 6,504 | 11,361 | |||||||||
Issuances | 23 | — | 46 | |||||||||
Interest accrual | 3,309 | 322 | 728 | |||||||||
Benefit payments | (3,006 | ) | (1,013 | ) | (1,119 | ) | ||||||
Derecognition (lapses and withdrawals) | — | — | — | |||||||||
Other | (2 | ) | 1 | (4 | ) | |||||||
Ending balance, at original discount rate | 61,146 | 5,814 | 11,012 | |||||||||
Effect of changes in discount rate assumptions | 24,192 | 1,343 | 6,027 | |||||||||
Ending balance as of December 31 | $ | 85,338 | $ | 7,157 | $ | 17,039 | ||||||
Net liability for future policy benefits, before flooring adjustments | $ | 60,091 | $ | 1,743 | $ | 17,039 | ||||||
Flooring adjustments (3) | — | 423 | — | |||||||||
Net liability for future policy benefits | 60,091 | 2,166 | 17,039 | |||||||||
Less: reinsurance recoverable | 10,557 | 1,040 | 12,583 | |||||||||
Net liability for future policy benefits, net of reinsurance recoverable | $ | 49,534 | $ | 1,126 | $ | 4,456 | ||||||
Weighted-average liability duration (years) | 16.9 | 7.0 | 13.6 |
Flooring adjustments are necessary when a cohort’s present value of future net premiums exceeds the present value of future benefits. The flooring adjustment ensures that the liability for future policy benefits for each cohort is not less than zero. This adjustment is most prevalent in our term life insurance products due to their product design of a level premium period followed by annual premium rate increases. |
December 31, 2021 | ||||||||||||
(Dollar amounts in millions) | Long-term care insurance | Life insurance (1) | Fixed annuities | |||||||||
Present value of expected net premiums: | ||||||||||||
Beginning balance as of January 1 | $ | 26,283 | $ | 5,451 | $ | — | ||||||
Beginning balance, at original discount rate | $ | 20,600 | $ | 3,916 | $ | — | ||||||
Effect of changes in cash flow assumptions | 1,615 | 228 | — | |||||||||
Effect of actual variances from expected experience | (444 | ) | 165 | — | ||||||||
Adjusted beginning balance | 21,771 | 4,309 | — | |||||||||
Issuances | 23 | — | 47 | |||||||||
Interest accrual | 1,053 | 221 | — | |||||||||
Net premiums collected (2) | (2,130 | ) | (444 | ) | (47 | ) | ||||||
Derecognition (lapses and withdrawals) | — | — | — | |||||||||
Other | — | — | — | |||||||||
Ending balance, at original discount rate | 20,717 | 4,086 | — | |||||||||
Effect of changes in discount rate assumptions | 4,530 | 1,328 | — | |||||||||
Ending balance as of December 31 | $ | 25,247 | $ | 5,414 | $ | — | ||||||
Present value of expected future policy benefits: | ||||||||||||
Beginning balance as of January 1 | $ | 89,645 | $ | 7,821 | $ | 18,637 | ||||||
Beginning balance, at original discount rate | $ | 59,709 | $ | 6,062 | $ | 11,358 | ||||||
Effect of changes in cash flow assumptions | 1,678 | 252 | 27 | |||||||||
Effect of actual variances from expected experience | (565 | ) | 190 | (24 | ) | |||||||
Adjusted beginning balance | 60,822 | 6,504 | 11,361 | |||||||||
Issuances | 23 | — | 46 | |||||||||
Interest accrual | 3,309 | 322 | 728 | |||||||||
Benefit payments | (3,006 | ) | (1,013 | ) | (1,119 | ) | ||||||
Derecognition (lapses and withdrawals) | — | — | — | |||||||||
Other | (2 | ) | 1 | (4 | ) | |||||||
Ending balance, at original discount rate | 61,146 | 5,814 | 11,012 | |||||||||
Effect of changes in discount rate assumptions | 24,192 | 1,343 | 6,027 | |||||||||
Ending balance as of December 31 | $ | 85,338 | $ | 7,157 | $ | 17,039 | ||||||
Net liability for future policy benefits, before flooring adjustments | $ | 60,091 | $ | 1,743 | $ | 17,039 | ||||||
Flooring adjustments (3) | — | 423 | — | |||||||||
Net liability for future policy benefits | 60,091 | 2,166 | 17,039 | |||||||||
Less: reinsurance recoverable | 10,557 | 1,040 | 12,583 | |||||||||
Net liability for future policy benefits, after reinsurance recoverable | $ | 49,534 | $ | 1,126 | $ | 4,456 | ||||||
Weighted-average liability duration (years) | 16.9 | 7.0 | 13.6 |
(1) | The components of the life insurance rollforward exclude flooring. |
(2) | Net premiums collected represents the portion of gross premiums collected from policyholders that is used to fund expected benefit payments. |
(3) | Flooring adjustments are necessary when a cohort’s present value of future net premiums exceeds the present value of future benefits. The flooring adjustment ensures that the liability for future policy benefits for each cohort is not less than zero. This adjustment is most prevalent in our term life insurance products due to their product design of a level premium period followed by annual premium rate increases. |
June 30, 2023 | December 31, 2022 | December 31, 2021 | September 30, 2023 | December 31, 2022 | December 31, 2021 | |||||||||||||||||||
Long-term care insurance | ||||||||||||||||||||||||
Interest accretion rate | 5.8 | % | 5.8 | % | 5.8 | % | 5.8 | % | 5.8 | % | 5.8 | % | ||||||||||||
Current discount rate | 5.2 | % | 5.4 | % | 2.8 | % | 6.0 | % | 5.4 | % | 2.8 | % | ||||||||||||
Life insurance | ||||||||||||||||||||||||
Interest accretion rate | 5.8 | % | 5.8 | % | 5.8 | % | 5.8 | % | 5.8 | % | 5.8 | % | ||||||||||||
Current discount rate | 5.1 | % | 5.2 | % | 2.4 | % | 5.8 | % | 5.2 | % | 2.4 | % | ||||||||||||
Fixed annuities | ||||||||||||||||||||||||
Interest accretion rate | 6.7 | % | 6.7 | % | 6.7 | % | 6.7 | % | 6.7 | % | 6.7 | % | ||||||||||||
Current discount rate | 5.2 | % | 5.3 | % | 2.8 | % | 5.9 | % | 5.3 | % | 2.8 | % |
June 30, 2023 | December 31, 2022 | December 31, 2021 | September 30, 2023 | December 31, 2022 | December 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||
(Amounts in millions) | Undiscounted | Discounted | Undiscounted | Discounted | Undiscounted | Discounted | Undiscounted | Discounted | Undiscounted | Discounted | Undiscounted | Discounted | ||||||||||||||||||||||||||||||||||||
Long-term care insurance | ||||||||||||||||||||||||||||||||||||||||||||||||
Expected future gross premiums | $ | 40,968 | $ | 27,693 | $ | 42,329 | $ | 28,278 | $ | 45,334 | $ | 36,642 | $ | 39,880 | $ | 25,926 | $ | 42,329 | $ | 28,278 | $ | 45,334 | $ | 36,642 | ||||||||||||||||||||||||
Expected future benefit payments | 128,048 | 61,938 | 130,315 | 61,352 | 133,974 | 85,338 | $ | 127,148 | $ | 57,132 | $ | 130,315 | $ | 61,352 | $ | 133,974 | $ | 85,338 | ||||||||||||||||||||||||||||||
Life insurance | ||||||||||||||||||||||||||||||||||||||||||||||||
Expected future gross premiums | 11,158 | 6,411 | 11,541 | 6,559 | 12,266 | 8,853 | $ | 10,993 | $ | 5,970 | $ | 11,541 | $ | 6,559 | $ | 12,266 | $ | 8,853 | ||||||||||||||||||||||||||||||
Expected future benefit payments | 7,516 | 5,290 | 7,924 | 5,556 | 8,652 | 7,157 | $ | 7,360 | $ | 5,014 | $ | 7,924 | $ | 5,556 | $ | 8,652 | $ | 7,157 | ||||||||||||||||||||||||||||||
Fixed annuities | ||||||||||||||||||||||||||||||||||||||||||||||||
Expected future gross premiums | — | — | — | — | — | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||||||||||||
Expected future benefit payments | 24,453 | 11,905 | 24,924 | 11,923 | 26,473 | 17,039 | $ | 24,157 | $ | 10,965 | $ | 24,924 | $ | 11,923 | $ | 26,473 | $ | 17,039 |
Three months ended September 30, 2023 | Three months ended September 30, 2022 | Nine months ended September 30, 2023 | Nine months ended September 30, 2022 | Years ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | |||||||||||||||||||||||||||||||||||||||||||||||
(Amounts in millions) | Gross premiums | Interest expense (1) | Gross premiums | Interest expense (1) | Gross premiums | Interest expense (1) | Gross premiums | Interest expense (1) | Gross premiums | Interest expense (1) | Gross premiums | Interest expense (1) | ||||||||||||||||||||||||||||||||||||
Long-term care insurance | $ | 685 | $ | 584 | $ | 707 | $ | 578 | $ | 2,031 | $ | 1,744 | $ | 2,059 | $ | 1,723 | $ | 2,769 | $ | 2,303 | $ | 2,847 | $ | 2,256 | ||||||||||||||||||||||||
Life insurance | 168 | 15 | 178 | 19 | 521 | 48 | 550 | 60 | 725 | 78 | 759 | 101 | ||||||||||||||||||||||||||||||||||||
Fixed annuities | — | 166 | — | 171 | — | 500 | — | 521 | — | 690 | — | 728 | ||||||||||||||||||||||||||||||||||||
Total | $ | 853 | $ | 765 | $ | 885 | $ | 768 | $ | 2,552 | $ | 2,292 | $ | 2,609 | $ | 2,304 | $ | 3,494 | $ | 3,071 | $ | 3,606 | $ | 3,085 | ||||||||||||||||||||||||
Three months ended June 30, 2023 | Three months ended June 30, 2022 | Six months ended June 30, 2023 | Six months ended June 30, 2022 | Years ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | |||||||||||||||||||||||||||||||||||||||||||||||
(Amounts in millions) | Gross premiums | Interest expense (1) | Gross premiums | Interest expense (1) | Gross premiums | Interest expense (1) | Gross premiums | Interest expense (1) | Gross premiums | Interest expense (1) | Gross premiums | Interest expense (1) | ||||||||||||||||||||||||||||||||||||
Long-term care insurance | $ | 671 | $ | 582 | $ | 681 | $ | 573 | $ | 1,346 | $ | 1,160 | $ | 1,352 | $ | 1,145 | $ | 2,769 | $ | 2,303 | $ | 2,847 | $ | 2,256 | ||||||||||||||||||||||||
Life insurance | 174 | 16 | 185 | 19 | 353 | 33 | 372 | 41 | 725 | 78 | 759 | 101 | ||||||||||||||||||||||||||||||||||||
Fixed annuities | — | 166 | — | 172 | — | 334 | — | 350 | — | 690 | — | 728 | ||||||||||||||||||||||||||||||||||||
Total | $ | 845 | $ | 764 | $ | 866 | $ | 764 | $ | 1,699 | $ | 1,527 | $ | 1,724 | $ | 1,536 | $ | 3,494 | $ | 3,071 | $ | 3,606 | $ | 3,085 | ||||||||||||||||||||||||
(1) | Amounts for interest accretion, labeled “interest expense” in the table above, are included in benefits and other changes in policy reserves in the condensed consolidated statements of income for the three and |
(Amounts in millions) | June 30, 2023 | December 31, 2022 | September 30, 2023 | December 31, 2022 | ||||||||||||
Life insurance | $ | 7,595 | $ | 7,694 | $ | 7,502 | $ | 7,694 | ||||||||
Fixed annuities | 4,922 | 5,477 | 4,700 | 5,477 | ||||||||||||
Variable annuities | 567 | 610 | 549 | 610 | ||||||||||||
Total investment contracts | 13,084 | 13,781 | ||||||||||||||
Fixed indexed annuity embedded derivatives (1) | 180 | 202 | 174 | 202 | ||||||||||||
Indexed universal life embedded derivatives (1) | 15 | 15 | 14 | 15 | ||||||||||||
Additional insurance liabilities (2) | 2,638 | 2,566 | 2,646 | 2,566 | ||||||||||||
Other | 5 | — | 5 | — | ||||||||||||
Total policyholder account balances | $ | 15,922 | $ | 16,564 | $ | 15,590 | $ | 16,564 | ||||||||
(1) | See note 6 for additional information. |
(2) | Amount represents additional liabilities related to death or other insurance benefits that are recorded within policyholder account balances and are considered long-duration insurance contracts. See note 12 for additional information. |
June 30, 2023 | September 30, 2023 | |||||||||||||||||||||||
(Dollar amounts in millions) | Life insurance | Fixed annuities | Variable annuities | Life insurance | Fixed annuities | Variable annuities | ||||||||||||||||||
Beginning balance as of January 1 | $ | 7,694 | $ | 5,477 | $ | 610 | $ | 7,694 | $ | 5,477 | $ | 610 | ||||||||||||
Issuances | — | — | — | — | — | — | ||||||||||||||||||
Premiums received | 264 | 13 | 7 | 384 | 17 | 11 | ||||||||||||||||||
Policy charges | (311 | ) | (3 | ) | (2 | ) | (464 | ) | (4 | ) | (4 | ) | ||||||||||||
Surrenders and withdrawals | (143 | ) | (482 | ) | (38 | ) | (234 | ) | (663 | ) | (55 | ) | ||||||||||||
Benefit payments | (103 | ) | (198 | ) | (41 | ) | (171 | ) | (292 | ) | (54 | ) | ||||||||||||
Net transfers from (to) separate accounts | — | — | 1 | — | — | 1 | ||||||||||||||||||
Interest credited | 194 | 82 | 2 | 291 | 121 | 3 | ||||||||||||||||||
Other | — | 33 | 28 | 2 | 44 | 37 | ||||||||||||||||||
Ending balance as of June 30 | $ | 7,595 | $ | 4,922 | $ | 567 | ||||||||||||||||||
Ending balance as of September 30 | $ | 7,502 | $ | 4,700 | $ | 549 | ||||||||||||||||||
Weighted-average crediting rate | 3.9 | % | 2.6 | % | 3.3 | % | 3.9 | % | 2.8 | % | 3.3 | % | ||||||||||||
Net amount at risk (1) | $ | 43,344 | $ | 23 | $ | 531 | $ | 43,456 | $ | 11 | $ | 535 | ||||||||||||
Cash surrender value | $ | 4,284 | $ | 3,916 | $ | 567 | $ | 4,308 | $ | 3,714 | $ | 549 |
(1) |
December 31, 2022 | ||||||||||||
(Dollar amounts in millions) | Life insurance | Fixed annuities | Variable annuities | |||||||||
Beginning balance as of January 1 | $ | 7,835 | $ | 6,595 | $ | 652 | ||||||
Issuances | — | — | — | |||||||||
Premiums received | 518 | 23 | 21 | |||||||||
Policy charges | (632 | ) | (6 | ) | (8 | ) | ||||||
Surrenders and withdrawals | (177 | ) | (908 | ) | (48 | ) | ||||||
Benefit payments | (210 | ) | (475 | ) | (69 | ) | ||||||
Net transfers from (to) separate accounts | — | — | 11 | |||||||||
Interest credited | 381 | 173 | 4 | |||||||||
Other | (21 | ) | 75 | 47 | ||||||||
Ending balance as of December 31 | $ | 7,694 | $ | 5,477 | $ | 610 | ||||||
Weighted-average crediting rate | 3.9 | % | 2.4 | % | 3.3 | % | ||||||
Net amount at risk (1) | $ | 44,113 | $ | 21 | $ | 661 | ||||||
Cash surrender value | $ | 4,415 | $ | 4,449 | $ | 610 |
The net amount at risk presented for fixed and variable annuity products contains both general and separate accounts, including amounts related to annuitization and other insurance benefits classified as MRBs. |
December 31, 2022 | ||||||||||||
(Dollar amounts in millions) | Life insurance | Fixed annuities | Variable annuities | |||||||||
Beginning balance as of January 1 | $ | 7,835 | $ | 6,595 | $ | 652 | ||||||
Issuances | — | — | — | |||||||||
Premiums received | 518 | 23 | 21 | |||||||||
Policy charges | (632 | ) | (6 | ) | (8 | ) | ||||||
Surrenders and withdrawals | (177 | ) | (908 | ) | (48 | ) | ||||||
Benefit payments | (210 | ) | (475 | ) | (69 | ) | ||||||
Net transfers from (to) separate accounts | — | — | 11 | |||||||||
Interest credited | 381 | 173 | 4 | |||||||||
Other | (21 | ) | 75 | 47 | ||||||||
Ending balance as of December 31 | $ | 7,694 | $ | 5,477 | $ | 610 | ||||||
Weighted-average crediting rate | 3.9 | % | 2.4 | % | 3.3 | % | ||||||
Net amount at risk (1) | $ | 44,113 | $ | 21 | $ | 661 | ||||||
Cash surrender value | $ | 4,415 | $ | 4,449 | $ | 610 |
(1) | The net amount at risk presented for fixed and variable annuity products contains both general and separate accounts, including amounts related to annuitization and other insurance benefits classified as MRBs. |
December 31, 2021 | ||||||||||||
(Dollar amounts in millions) | Life insurance | Fixed annuities | Variable annuities | |||||||||
Beginning balance as of January 1 | $ | 8,105 | $ | 7,892 | $ | 689 | ||||||
Issuances | — | — | — | |||||||||
Premiums received | 558 | 36 | 24 | |||||||||
Policy charges | (644 | ) | (7 | ) | (8 | ) | ||||||
Surrenders and withdrawals | (298 | ) | (1,153 | ) | (43 | ) | ||||||
Benefit payments | (233 | ) | (508 | ) | (58 | ) | ||||||
Net transfers from (to) separate accounts | — | — | 5 | |||||||||
Interest credited | 365 | 199 | 5 | |||||||||
Other | (18 | ) | 136 | 38 | ||||||||
Ending balance as of December 31 | $ | 7,835 | $ | 6,595 | $ | 652 | ||||||
Weighted-average crediting rate | 3.9 | % | 2.3 | % | 3.2 | % | ||||||
Net amount at risk (1) | $ | 46,613 | $ | 98 | $ | 648 | ||||||
Cash surrender value | $ | 4,411 | $ | 5,471 | $ | 652 |
(1) | The net amount at risk presented for fixed and variable annuity products contains both general and separate accounts, including amounts related to annuitization and other insurance benefits classified as MRBs. |
June 30, 2023 | ||||||||||||||||||||
(Amounts in millions) | At guaranteed minimum | 1–50 basis points above | 51–150 basis points above | Greater than 150 basis points above | Total (1) | |||||||||||||||
Less than 2.00% | $ | 618 | $ | 92 | $ | 5 | $ | — | $ | 715 | ||||||||||
2.00%–2.99% | 1,038 | 2 | — | — | 1,040 | |||||||||||||||
3.00%–3.99% | 1,826 | 728 | 1,177 | 5 | 3,736 | |||||||||||||||
4.00% and greater | 2,557 | 16 | 4 | — | 2,577 | |||||||||||||||
Total | $ | 6,039 | $ | 838 | $ | 1,186 | $ | 5 | $ | 8,068 | ||||||||||
September 30, 2023 | ||||||||||||||||||||
(Amounts in millions) | At guaranteed minimum | 1–50 basis points above | 51–150 basis points above | Greater than 150 basis points above | Total (1) | |||||||||||||||
Less than 2.00% | $ | 336 | $ | 106 | $ | 9 | $ | — | $ | 451 | ||||||||||
2.00%–2.99% | 1,186 | 2 | — | — | 1,188 | |||||||||||||||
3.00%–3.99% | 1,780 | 717 | 1,167 | 19 | 3,683 | |||||||||||||||
4.00% and greater | 2,509 | 16 | 8 | — | 2,533 | |||||||||||||||
Total | $ | 5,811 | $ | 841 | $ | 1,184 | $ | 19 | $ | 7,855 | ||||||||||
(1) | Excludes universal life insurance and investment contracts of approximately |
December 31, 2022 | ||||||||||||||||||||
(Amounts in millions) | At guaranteed minimum | 1–50 basis points above | 51–150 basis points above | Greater than 150 basis points above | Total (1) | |||||||||||||||
Less than 2.00% | $ | 1,065 | $ | 42 | $ | 2 | $ | — | $ | 1,109 | ||||||||||
2.00%–2.99% | 947 | 2 | — | — | 949 | |||||||||||||||
3.00%–3.99% | 1,928 | 774 | 1,156 | 1 | 3,859 | |||||||||||||||
4.00% and greater | 2,649 | 12 | 1 | — | 2,662 | |||||||||||||||
Total | $ | 6,589 | $ | 830 | $ | 1,159 | $ | 1 | $ | 8,579 | ||||||||||
December 31, 2022 | ||||||||||||||||||||
(Amounts in millions) | At guaranteed minimum | 1–50 basis points above | 51–150 basis points above | Greater than 150 basis points above | Total (1) | |||||||||||||||
Less than 2.00 % | $ | 1,065 | $ | 42 | $ | 2 | $ | — | $ | 1,109 | ||||||||||
2.00%–2.99% | 947 | 2 | — | — | 949 | |||||||||||||||
3.00%–3.99% | 1,928 | 774 | 1,156 | 1 | 3,859 | |||||||||||||||
4.00% and greater | 2,649 | 12 | 1 | — | 2,662 | |||||||||||||||
Total | $ | 6,589 | $ | 830 | $ | 1,159 | $ | 1 | $ | 8,579 | ||||||||||
(1) | Excludes universal life insurance and investment contracts of approximately $5,202 million that have a market component to their crediting strategy. |
(Dollar amounts in millions) | September 30, 2023 | December 31, 2022 | December 31, 2021 (2) | |||||||||
Beginning balance as of January 1 | $ | 2,566 | $ | 2,656 | $ | 2,524 | ||||||
Beginning balance before shadow accounting adjustments | $ | 2,634 | $ | 2,523 | $ | 2,341 | ||||||
Effect of changes in cash flow assumptions | — | (37 | ) | 85 | ||||||||
Effect of actual variances from expected experience | 30 | 33 | 40 | |||||||||
Adjusted beginning balance | 2,664 | 2,519 | 2,466 | |||||||||
Issuances | — | — | — | |||||||||
Interest accrual | 66 | 85 | 77 | |||||||||
Assessments collected | 181 | 245 | 253 | |||||||||
Benefit payments | (161 | ) | (215 | ) | (282 | ) | ||||||
Derecognition (lapses and withdrawals) | — | — | — | |||||||||
Other (flooring adjustment) | — | — | 9 | |||||||||
Ending balance before shadow accounting adjustments | 2,750 | 2,634 | 2,523 | |||||||||
Effect of shadow accounting adjustments | (104 | ) | (68 | ) | 133 | |||||||
Ending balance | 2,646 | 2,566 | 2,656 | |||||||||
Less: reinsurance recoverable (1) | — | — | — | |||||||||
Additional insurance liabilities, net of reinsurance recoverable | $ | 2,646 | $ | 2,566 | $ | 2,656 | ||||||
Weighted-average liability duration (years) | 19.8 | 20.8 | 22.6 |
(Dollar amounts in millions) | June 30, 2023 | December 31, 2022 | December 31, 2021 | |||||||||
Beginning balance as of January 1 | $ | 2,566 | $ | 2,656 | $ | 2,524 | ||||||
Beginning balance before shadow accounting adjustments | 2,634 | 2,523 | 2,341 | |||||||||
Effect of changes in cash flow assumptions | — | (37 | ) | 85 | ||||||||
Effect of actual variances from expected experience | 8 | 33 | (4 | ) | ||||||||
Adjusted beginning balance | 2,642 | 2,519 | 2,422 | |||||||||
Issuances | — | — | — | |||||||||
Interest accrual | 44 | 85 | 84 | |||||||||
Assessments collected | 123 | 245 | 274 | |||||||||
Benefit payments | (109 | ) | (215 | ) | (300 | ) | ||||||
Derecognition (lapses and withdrawals) | — | — | — | |||||||||
Other (flooring adjustment) | — | — | 43 | |||||||||
Ending balance before shadow accounting adjustments | 2,700 | 2,634 | 2,523 | |||||||||
Effect of shadow accounting adjustments | (62 | ) | (68 | ) | 133 | |||||||
Ending balance | 2,638 | 2,566 | 2,656 | |||||||||
Less: reinsurance recoverable | 375 | 377 | 407 | |||||||||
Additional insurance liabilities, net of reinsurance recoverable | $ | 2,263 | $ | 2,189 | $ | 2,249 | ||||||
Weighted-average liability duration (years) | 20.2 | 20.8 | 22.6 |
(1) | Reflects immaterial revisions to the presentation of reinsurance recoverable previously disclosed in our quarterly reports on Form 10-Q for the first and second quarters of 2023 to correctly remove amounts associated with policyholder account balances. |
(2) | Reflects immaterial revisions to the presentation of certain line items of the December 31, 2021 rollforward previously disclosed in our quarterly reports on Form 10-Q for the first and second quarters of 2023 to correctly reflect changes to flooring adjustments. |
June 30, 2023 | December 31, 2022 | December 31, 2021 | September 30, 2023 | December 31, 2022 | December 31, 2021 | |||||||||||||||||||
Interest accretion rate (1) | 3.3 | % | 3.3 | % | 3.2 | % | 3.3 | % | 3.3 | % | 3.2 | % | ||||||||||||
Projected crediting rate (2) | 3.8 | % | 3.8 | % | 3.6 | % | 3.8 | % | 3.8 | % | 3.6 | % |
(1) | The interest accretion rate is determined by using the weighted-average policyholder crediting rates for the underlying policies over the period in-force, and based on the adjusted beginning balance, is used to measure the amount of interest accrual. |
(2) | The projected crediting rate is determined by using a future crediting rate curve that utilizes a portfolio approach reflecting anticipated reinvestment activity and runoff of existing assets over the projection period. The projected crediting rate is used to discount future assessments and excess benefits. |
Three months ended June 30, | Six months ended June 30, | Years ended December 31, | ||||||||||||||||||||||
(Amounts in millions) | 2023 | 2022 | 2023 | 2022 | 2022 | 2021 | ||||||||||||||||||
Gross assessments | $ | 136 | $ | 144 | $ | 272 | $ | 291 | $ | 559 | $ | 592 | ||||||||||||
Interest expense (1) | $ | 22 | $ | 21 | $ | 44 | $ | 41 | $ | 85 | $ | 84 |
Three months ended September 30, | Nine months ended September 30, | Years ended December 31, | ||||||||||||||||||||||
(Amounts in millions) | 2023 | 2022 | 2023 | 2022 | 2022 | 2021 | ||||||||||||||||||
Gross assessments | $ | 134 | $ | 136 | $ | 406 | $ | 427 | $ | 559 | $ | 592 | ||||||||||||
Interest expense (1) | $ | 22 | $ | 22 | $ | 66 | $ | 63 | $ | 85 | $ | 77 |
(1) | Amounts for interest accretion, labeled “interest expense” in the table above, are included in benefits and other changes in policy reserves in the condensed consolidated statements of income. |
June 30, 2023 | December 31, 2022 | |||||||||||||||||||||||
(Amounts in millions) | Asset | Liability | Net liability | Asset | Liability | Net liability | ||||||||||||||||||
Fixed indexed annuities | $ | — | $ | 57 | $ | 57 | $ | — | $ | 52 | $ | 52 | ||||||||||||
Variable annuities | 37 | 609 | 572 | 26 | 696 | 670 | ||||||||||||||||||
Total market risk benefits | $ | 37 | $ | 666 | $ | 629 | $ | 26 | $ | 748 | $ | 722 | ||||||||||||
September 30, 2023 | December 31, 2022 | |||||||||||||||||||||||
(Amounts in millions) | Asset | Liability | Net liability | Asset | Liability | Net liability | ||||||||||||||||||
Fixed indexed annuities | $ | — | $ | 38 | $ | 38 | $ | — | $ | 52 | $ | 52 | ||||||||||||
Variable annuities | 39 | 541 | 502 | 26 | 696 | 670 | ||||||||||||||||||
Total market risk benefits | $ | 39 | $ | 579 | $ | 540 | $ | 26 | $ | 748 | $ | 722 | ||||||||||||
June 30, 2023 | ||||||||||||
(Dollar amounts in millions) | Fixed indexed annuities | Variable annuities | Reinsurance recoverable (1) | |||||||||
Beginning balance as of January 1 | $ | 52 | $ | 670 | $ | 158 | ||||||
Beginning balance before effect of changes in instrument-specific credit risk | $ | 50 | $ | 660 | $ | 158 | ||||||
Issuances | — | — | — | |||||||||
Interest accrual | 1 | 18 | 4 | |||||||||
Attributed fees collected | 3 | 19 | 5 | |||||||||
Benefit payments | — | (18 | ) | (8 | ) | |||||||
Effect of changes in interest rates | 3 | (7 | ) | (4 | ) | |||||||
Effect of changes in equity markets | (1 | ) | (113 | ) | (23 | ) | ||||||
Actual policyholder behavior different from expected behavior | (1 | ) | 4 | 3 | ||||||||
Effect of changes in future expected policyholder behavior | — | — | — | |||||||||
Effect of changes in other future expected assumptions | — | — | — | |||||||||
Ending balance before effect of changes in instrument-specific credit risk | 55 | 563 | 135 | |||||||||
Effect of changes in instrument-specific credit risk | 2 | 9 | — | |||||||||
Ending balance as of June 30 | 57 | 572 | $ | 135 | ||||||||
Less: reinsurance recoverable | — | 135 | ||||||||||
Market risk benefits, net of reinsurance recoverable | $ | 57 | $ | 437 | ||||||||
Weighted-average attained age of contractholders | 72 | 76 | ||||||||||
Net amount at risk (2) |
December 31, 2022 | ||||||||||||
(Dollar amounts in millions) | Fixed indexed annuities | Variable annuities | Reinsurance recoverable (1) | |||||||||
Beginning balance as of January 1 | $ | 94 | $ | 855 | $ | 193 | ||||||
Beginning balance before effect of changes in instrument-specific credit risk | $ | 90 | $ | 840 | $ | 193 | ||||||
Issuances | — | 6 | — | |||||||||
Interest accrual | 1 | 18 | 4 | |||||||||
Attributed fees collected | 5 | 42 | 9 | |||||||||
Benefit payments | — | (28 | ) | (16 | ) | |||||||
Effect of changes in interest rates | (51 | ) | (513 | ) | (74 | ) | ||||||
Effect of changes in equity markets | 5 | 286 | 39 | |||||||||
Actual policyholder behavior different from expected behavior | (2 | ) | 8 | 3 | ||||||||
Effect of changes in future expected policyholder behavior | — | — | — | |||||||||
Effect of changes in other future expected assumptions | — | — | — | |||||||||
Other | 2 | 1 | — | |||||||||
Ending balance before effect of changes in instrument-specific credit risk | 50 | 660 | 158 | |||||||||
Effect of changes in instrument-specific credit risk | 2 | 10 | — | |||||||||
Ending balance as of December 31 | 52 | 670 | $ | 158 | ||||||||
Less: reinsurance recoverable | — | 158 | ||||||||||
Market risk benefits, net of reinsurance recoverable | $ | 52 | $ | 512 | ||||||||
Weighted-average attained age of contractholders | 72 | 76 | ||||||||||
Net amount at risk (2) |
September 30, 2023 | ||||||||||||
(Dollar amounts in millions) | Fixed indexed annuities | Variable annuities | Reinsurance recoverable (1) | |||||||||
Beginning balance as of January 1 | $ | 52 | $ | 670 | $ | 158 | ||||||
Beginning balance before effect of changes in instrument-specific credit risk | $ | 50 | $ | 660 | $ | 158 | ||||||
Issuances | — | — | — | |||||||||
Interest accrual | 2 | 26 | 6 | |||||||||
Attributed fees collected | 3 | 28 | 6 | |||||||||
Benefit payments | — | (26 | ) | (11 | ) | |||||||
Effect of changes in interest rates | (16 | ) | (142 | ) | (24 | ) | ||||||
Effect of changes in equity markets | (1 | ) | (54 | ) | (15 | ) | ||||||
Actual policyholder behavior different from expected behavior | (2 | ) | 4 | 3 | ||||||||
Effect of changes in future expected policyholder behavior | — | — | — | |||||||||
Effect of changes in other future expected assumptions | — | — | — | |||||||||
Ending balance before effect of changes in instrument-specific credit risk | 36 | 496 | 123 | |||||||||
Effect of changes in instrument-specific credit risk | 2 | 6 | — | |||||||||
Ending balance as of September 30 | 38 | 502 | $ | 123 | ||||||||
Less: reinsurance recoverable | — | 123 | ||||||||||
Market risk benefits, net of reinsurance recoverable | $ | 38 | $ | 379 | ||||||||
Weighted-average attained age of contractholders | 72 | 76 | ||||||||||
Net amount at risk (2) |
(1) | Represents the net reinsured asset related to our variable annuity MRBs. |
(2) | See note 11 for additional information on the net amount at risk. |
December 31, 2021 | December 31, 2022 | |||||||||||||||||||||||
(Dollar amounts in millions) | Fixed indexed annuities | Variable annuities | Reinsurance recoverable (1) | Fixed indexed annuities | Variable annuities | Reinsurance recoverable (1) | ||||||||||||||||||
Beginning balance as of January 1 | $ | 115 | $ | 1,173 | $ | 244 | $ | 94 | $ | 855 | $ | 193 | ||||||||||||
Beginning balance before effect of changes in instrument-specific credit risk | $ | 110 | $ | 1,154 | $ | 244 | $ | 90 | $ | 840 | $ | 193 | ||||||||||||
Issuances | — | 3 | — | — | 6 | — | ||||||||||||||||||
Interest accrual | — | 4 | 1 | 1 | 18 | 4 | ||||||||||||||||||
Attributed fees collected | 6 | 48 | 11 | 5 | 42 | 9 | ||||||||||||||||||
Benefit payments | — | (23 | ) | (13 | ) | — | (28 | ) | (16 | ) | ||||||||||||||
Effect of changes in interest rates | (10 | ) | (115 | ) | (21 | ) | (51 | ) | (513 | ) | (74 | ) | ||||||||||||
Effect of changes in equity markets | (7 | ) | (267 | ) | (42 | ) | 5 | 286 | 39 | |||||||||||||||
Actual policyholder behavior different from expected behavior | (7 | ) | 36 | 13 | (2 | ) | 8 | 3 | ||||||||||||||||
Effect of changes in future expected policyholder behavior | — | — | — | — | — | — | ||||||||||||||||||
Effect of changes in other future expected assumptions | — | — | — | — | — | — | ||||||||||||||||||
Other | (2 | ) | — | — | 2 | 1 | — | |||||||||||||||||
Ending balance before effect of changes in instrument-specific credit risk | 90 | 840 | 193 | 50 | 660 | 158 | ||||||||||||||||||
Effect of changes in instrument-specific credit risk | 4 | 15 | — | 2 | 10 | — | ||||||||||||||||||
Ending balance as of December 31 | 94 | 855 | $ | 193 | 52 | 670 | $ | 158 | ||||||||||||||||
Less: reinsurance recoverable | — | 193 | — | 158 | ||||||||||||||||||||
Market risk benefits, net of reinsurance recoverable | $ | 94 | $ | 662 | $ | 52 | $ | 512 | ||||||||||||||||
Weighted-average attained age of contractholders | 71 | 75 | 72 | 76 | ||||||||||||||||||||
Net amount at risk (2) |
(1) | Represents the net reinsured asset related to our variable annuity MRBs. |
(2) | See note 11 for additional information on the net amount at risk. |
December 31, 2021 | ||||||||||||
(Dollar amounts in millions) | Fixed indexed annuities | Variable annuities | Reinsurance recoverable (1) | |||||||||
Beginning balance as of January 1 | $ | 115 | $ | 1,173 | $ | 244 | ||||||
Beginning balance before effect of changes in instrument-specific credit risk | $ | 110 | $ | 1,154 | $ | 244 | ||||||
Issuances | — | 3 | — | |||||||||
Interest accrual | — | 4 | 1 | |||||||||
Attributed fees collected | 6 | 48 | 11 | |||||||||
Benefit payments | — | (23 | ) | (13 | ) | |||||||
Effect of changes in interest rates | (10 | ) | (115 | ) | (21 | ) | ||||||
Effect of changes in equity markets | (7 | ) | (267 | ) | (42 | ) | ||||||
Actual policyholder behavior different from expected behavior | (7 | ) | 36 | 13 | ||||||||
Effect of changes in future expected policyholder behavior | — | — | — | |||||||||
Effect of changes in other future expected assumptions | — | — | — | |||||||||
Other | (2 | ) | — | — | ||||||||
Ending balance before effect of changes in instrument-specific credit risk | 90 | 840 | 193 | |||||||||
Effect of changes in instrument-specific credit risk | 4 | 15 | — | |||||||||
Ending balance as of December 31 | 94 | 855 | $ | 193 | ||||||||
Less: reinsurance recoverable | — | 193 | ||||||||||
Market risk benefits, net of reinsurance recoverable | $ | 94 | $ | 662 | ||||||||
Weighted-average attained age of contractholders | 71 | 75 | ||||||||||
Net amount at risk (2) |
(1) | Represents the net reinsured asset related to our variable annuity MRBs. |
(2) | See note 11 for additional information on the net amount at risk. |
(Amounts in millions) | June 30, 2023 | December 31, 2022 | December 31, 2021 | |||||||||
Beginning balance as of January 1 | $ | 4,417 | $ | 6,066 | $ | 6,081 | ||||||
Premiums and deposits | 20 | 48 | 47 | |||||||||
Policy charges | (53 | ) | (115 | ) | (136 | ) | ||||||
Surrenders and withdrawals | (177 | ) | (352 | ) | (506 | ) | ||||||
Benefit payments | (114 | ) | (226 | ) | (266 | ) | ||||||
Investment performance | 442 | (991 | ) | 852 | ||||||||
Net transfers to general account | (1 | ) | (11 | ) | (5 | ) | ||||||
Other charges | (1 | ) | (2 | ) | (1 | ) | ||||||
Ending balance | $ | 4,533 | $ | 4,417 | $ | 6,066 | ||||||
Cash surrender value (1) | $ | 4,531 | $ | 4,414 | $ | 6,065 |
(Amounts in millions) | September 30, 2023 | December 31, 2022 | December 31, 2021 | |||||||||
Beginning balance as of January 1 | $ | 4,417 | $ | 6,066 | $ | 6,081 | ||||||
Premiums and deposits | 27 | 48 | 47 | |||||||||
Policy charges | (79 | ) | (115 | ) | (136 | ) | ||||||
Surrenders and withdrawals | (265 | ) | (352 | ) | (506 | ) | ||||||
Benefit payments | (157 | ) | (226 | ) | (266 | ) | ||||||
Investment performance | 304 | (991 | ) | 852 | ||||||||
Net transfers to general account | (1 | ) | (11 | ) | (5 | ) | ||||||
Other charges | (2 | ) | (2 | ) | (1 | ) | ||||||
Ending balance | $ | 4,244 | $ | 4,417 | $ | 6,066 | ||||||
Cash surrender value (1) | $ | 4,241 | $ | 4,414 | $ | 6,065 |
(1) | Cash surrender value represents the amount of the contractholders’ account balances that was distributable as of |
(Amounts in millions) | June 30, 2023 | December 31, 2022 | September 30, 2023 | December 31, 2022 | ||||||||||||
Equity funds | $ | 1,986 | $ | 1,866 | $ | 1,866 | $ | 1,866 | ||||||||
Balanced funds | 1,976 | 1,962 | 1,831 | 1,962 | ||||||||||||
Bond funds | 329 | 332 | 306 | 332 | ||||||||||||
Money market funds | 242 | 257 | 241 | 257 | ||||||||||||
Total | $ | 4,533 | $ | 4,417 | $ | 4,244 | $ | 4,417 | ||||||||
(Amounts in millions) | June 30, 2023 | December 31, 2022 | September 30, 2023 | December 31, 2022 | ||||||||||||
Enact segment | $ | 490 | $ | 519 | $ | 501 | $ | 519 | ||||||||
Life and Annuities segment (1) | 131 | 158 | 123 | 158 | ||||||||||||
Other mortgage insurance business | 7 | 6 | 7 | 6 | ||||||||||||
Total liability for policy and contract claims | $ | 628 | $ | 683 | $ | 631 | $ | 683 | ||||||||
(1) | Primarily includes balances related to our universal and term universal life insurance products. |
Six months ended June 30, | Nine months ended September 30, | |||||||||||||||
(Amounts in millions) | 2023 | 2022 | 2023 | 2022 | ||||||||||||
Beginning balance as of January 1 | $ | 683 | $ | 819 | $ | 683 | $ | 819 | ||||||||
Less reinsurance recoverables | (23 | ) | (26 | ) | (23 | ) | (26 | ) | ||||||||
Net beginning balance | 660 | 793 | 660 | 793 | ||||||||||||
Incurred related to insured events of: | ||||||||||||||||
Current year | 417 | 415 | 634 | 647 | ||||||||||||
Prior years | (120 | ) | (136 | ) | (185 | ) | (245 | ) | ||||||||
Total incurred | 297 | 279 | 449 | 402 | ||||||||||||
Paid related to insured events of: | ||||||||||||||||
Current year | (257 | ) | (277 | ) | (393 | ) | (439 | ) | ||||||||
Prior years | (90 | ) | (97 | ) | (102 | ) | (111 | ) | ||||||||
Total paid | (347 | ) | (374 | ) | (495 | ) | (550 | ) | ||||||||
Foreign currency translation | 1 | — | 1 | — | ||||||||||||
Net ending balance | 611 | 698 | 615 | 645 | ||||||||||||
Add reinsurance recoverables | 17 | 35 | 16 | 24 | ||||||||||||
Ending balance as of June 30 | $ | 628 | $ | 733 | ||||||||||||
Ending balance as of September 30 | $ | 631 | $ | 669 | ||||||||||||
Three months ended September 30, | ||||||||
(Amounts in millions) | 2023 | 2022 | ||||||
Allowance for credit losses: | ||||||||
Beginning balance | $ | 64 | $ | 63 | ||||
Provision | 33 | 1 | ||||||
Write-offs | (69 | ) | — | |||||
Recoveries | — | — | ||||||
Ending balance | $ | 28 | $ | 64 | ||||
Nine months ended September 30, | ||||||||
(Amounts in millions) | 2023 | 2022 | ||||||
Allowance for credit losses: | ||||||||
Beginning balance | $ | 63 | $ | 58 | ||||
Provision | 34 | 6 | ||||||
Write-offs | (69 | ) | — | |||||
Recoveries | — | — | ||||||
Ending balance | $ | 28 | $ | 64 | ||||
September 30, 2023 | ||||||||||||
(Amounts in millions) | Collateralized | Non-collateralized | Total | |||||||||
Credit rating: | ||||||||||||
A++ | $ | — | $ | 660 | $ | 660 | ||||||
A+ | 1,349 | 1,691 | 3,040 | |||||||||
A | 34 | 346 | 380 | |||||||||
Not rated | 13,198 | 15 | 13,213 | |||||||||
Total reinsurance recoverable | $ | 14,581 | $ | 2,712 | $ | 17,293 | ||||||
December 31, 2022 | ||||||||||||
(Amounts in millions) | Collateralized | Non-collateralized | Total | |||||||||
Credit rating: | ||||||||||||
A++ | $ | — | $ | 626 | $ | 626 | ||||||
A+ | 1,268 | 2,050 | 3,318 | |||||||||
A | 20 | 33 | 53 | |||||||||
Not rated | 13,506 | 86 | 13,592 | |||||||||
Total reinsurance recoverable | $ | 14,794 | $ | 2,795 | $ | 17,589 | ||||||
Three months ended June 30, | Six months ended June 30, | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||
Statutory U.S. federal income tax rate | 21.0 | % | 21.0 | % | 21.0 | % | 21.0 | % | 21.0 | % | 21.0 | % | 21.0 | % | 21.0 | % | ||||||||||||||||
Increase in rate resulting from: | ||||||||||||||||||||||||||||||||
Tax on income from terminated swaps | 3.4 | 2.4 | 3.6 | 2.2 | 8.4 | 2.7 | 4.4 | 2.4 | ||||||||||||||||||||||||
Non-deductible expenses | 3.2 | 1.1 | 1.2 | 0.5 | ||||||||||||||||||||||||||||
Other, net | 0.5 | 0.4 | 1.0 | 0.5 | 0.7 | (0.3 | ) | 0.3 | — | |||||||||||||||||||||||
Effective rate | 24.9 | % | 23.8 | % | 25.6 | % | 23.7 | % | 33.3 | % | 24.5 | % | 26.9 | % | 23.9 | % | ||||||||||||||||
Three months ended June 30, | Six months ended June 30, | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||
(Amounts in millions) | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||
Enact segment | $ | 277 | $ | 273 | $ | 558 | $ | 543 | $ | 299 | $ | 275 | $ | 857 | $ | 818 | ||||||||||||||||
Long-Term Care Insurance segment | 1,143 | 1,108 | 2,241 | 2,203 | 1,082 | 1,087 | 3,323 | 3,290 | ||||||||||||||||||||||||
Life and Annuities segment: | ||||||||||||||||||||||||||||||||
Life insurance | 350 | 359 | 708 | 740 | 347 | 352 | 1,055 | 1,092 | ||||||||||||||||||||||||
Fixed annuities | 84 | 93 | 169 | 208 | 68 | 91 | 237 | 299 | ||||||||||||||||||||||||
Variable annuities | 35 | 37 | 71 | 77 | 34 | 37 | 105 | 114 | ||||||||||||||||||||||||
Life and Annuities segment | 469 | 489 | 948 | 1,025 | 449 | 480 | 1,397 | 1,505 | ||||||||||||||||||||||||
Corporate and Other | 3 | 17 | (1 | ) | 9 | 1 | 6 | — | 15 | |||||||||||||||||||||||
Total revenues | $ | 1,892 | $ | 1,887 | $ | 3,746 | $ | 3,780 | $ | 1,831 | $ | 1,848 | $ | 5,577 | $ | 5,628 | ||||||||||||||||
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
(Amounts in millions) | 2023 | 2022 | 2023 | 2022 | ||||||||||||
Net income available to Genworth Financial, Inc.’s common stockholders | $ | 137 | $ | 159 | $ | 259 | $ | 399 | ||||||||
Add: net income from continuing operations attributable to noncontrolling interests | 31 | 38 | 63 | 68 | ||||||||||||
Add: net income from discontinued operations attributable to noncontrolling interests | — | — | — | — | ||||||||||||
Net income | 168 | 197 | 322 | 467 | ||||||||||||
Less: income (loss) from discontinued operations, net of taxes | 2 | (1 | ) | 2 | (3 | ) | ||||||||||
Income from continuing operations | 166 | 198 | 320 | 470 | ||||||||||||
Less: net income from continuing operations attributable to noncontrolling interests | 31 | 38 | 63 | 68 | ||||||||||||
Income from continuing operations available to Genworth Financial, Inc.’s common | 135 | 160 | 257 | 402 | ||||||||||||
Adjustments to income from continuing operations available to Genworth Financial, Inc.’s common stockholders: | ||||||||||||||||
Net investment (gains) losses, net (1) | (41 | ) | (19 | ) | (30 | ) | (61 | ) | ||||||||
Changes in fair value of market risk benefits attributable to interest rates, equity markets and associated hedges (2) | (23 | ) | 8 | (9 | ) | (46 | ) | |||||||||
(Gains) losses on early extinguishment of debt (3) | — | 1 | (1 | ) | 4 | |||||||||||
Expenses related to restructuring | 1 | 1 | 4 | 1 | ||||||||||||
Taxes on adjustments | 13 | 2 | 8 | 22 | ||||||||||||
Adjusted operating income available to Genworth Financial, Inc.’s common stockholders | $ | 85 | $ | 153 | $ | 229 | $ | 322 | ||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
(Amounts in millions) | 2023 | 2022 | 2023 | 2022 | ||||||||||||
Net income available to Genworth Financial, Inc.’s common stockholders | $ | 29 | $ | 136 | $ | 288 | $ | 535 | ||||||||
Add: net income from continuing operations attributable to noncontrolling interests | 31 | 35 | 94 | 103 | ||||||||||||
Add: net income from discontinued operations attributable to noncontrolling interests | — | — | — | — | ||||||||||||
Net income | 60 | 171 | 382 | 638 | ||||||||||||
Less: income from discontinued operations, net of taxes | — | 5 | 2 | 2 | ||||||||||||
Income from continuing operations | 60 | 166 | 380 | 636 | ||||||||||||
Less: net income from continuing operations attributable to noncontrolling interests | 31 | 35 | 94 | 103 | ||||||||||||
Income from continuing operations available to Genworth Financial, Inc.’s common stockholders | 29 | 131 | 286 | 533 | ||||||||||||
Adjustments to income from continuing operations available to Genworth Financial, Inc.’s common stockholders: | ||||||||||||||||
Net investment (gains) losses, net (1) | 43 | 58 | 13 | (3 | ) | |||||||||||
Changes in fair value of market risk benefits attributable to interest rates, equity markets and associated hedges (2) | (26 | ) | (32 | ) | (35 | ) | (78 | ) | ||||||||
(Gains) losses on early extinguishment of debt (3) | — | 3 | (1 | ) | 7 | |||||||||||
Expenses related to restructuring | — | — | 4 | 1 | ||||||||||||
Pension plan termination costs | — | 6 | — | 6 | ||||||||||||
Taxes on adjustments | (4 | ) | (8 | ) | 4 | 14 | ||||||||||
Adjusted operating income available to Genworth Financial, Inc.’s common stockholders | $ | 42 | $ | 158 | $ | 271 | $ | 480 | ||||||||
(1) | For the |
(2) |
(3) | During the pre-tax gain of $1 million. During the three and pre-tax make-whole premium of $2 million and wrote off $1 million of bond consent fees and deferred borrowing costs related to the early redemption of Genworth Holdings’ senior notes originally scheduled to mature in February 2024. Additionally, during the nine months ended September 30, 2022, we repurchased pre-tax loss of |
Three months ended June 30, | Six months ended June 30, | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||
(Amounts in millions) | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||
Adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders: | ||||||||||||||||||||||||||||||||
Enact segment | $ | 146 | $ | 167 | $ | 289 | $ | 302 | $ | 134 | $ | 156 | $ | 423 | $ | 458 | ||||||||||||||||
Long-Term Care Insurance segment | (43 | ) | 17 | (20 | ) | 90 | (71 | ) | 26 | (91 | ) | 116 | ||||||||||||||||||||
Life and Annuities segment: | ||||||||||||||||||||||||||||||||
Life insurance | (17 | ) | (37 | ) | (44 | ) | (84 | ) | (25 | ) | (28 | ) | (69 | ) | (112 | ) | ||||||||||||||||
Fixed annuities | 10 | 20 | 24 | 33 | 17 | 15 | 41 | 48 | ||||||||||||||||||||||||
Variable annuities | 9 | 2 | 18 | 6 | 5 | 7 | 23 | 13 | ||||||||||||||||||||||||
Life and Annuities segment | 2 | (15 | ) | (2 | ) | (45 | ) | (3 | ) | (6 | ) | (5 | ) | (51 | ) | |||||||||||||||||
Corporate and Other | (20 | ) | (16 | ) | (38 | ) | (25 | ) | (18 | ) | (18 | ) | (56 | ) | (43 | ) | ||||||||||||||||
Adjusted operating income available to Genworth Financial, Inc.’s common stockholders | $ | 85 | $ | 153 | $ | 229 | $ | 322 | $ | 42 | $ | 158 | $ | 271 | $ | 480 | ||||||||||||||||
(Amounts in millions) | June 30, 2023 | December 31, 2022 | September 30, 2023 | December 31, 2022 | ||||||||||||
Assets: | ||||||||||||||||
Enact segment | $ | 5,922 | $ | 5,712 | $ | 6,000 | $ | 5,712 | ||||||||
Long-Term Care Insurance segment | 45,194 | 44,156 | 42,927 | 44,156 | ||||||||||||
Life and Annuities segment | 37,168 | 37,975 | 35,111 | 37,975 | ||||||||||||
Corporate and Other | 1,560 | 1,871 | 1,428 | 1,871 | ||||||||||||
Total assets | $ | 89,844 | $ | 89,714 | $ | 85,466 | $ | 89,714 | ||||||||
(Amounts in millions) | Net unrealized investment gains (losses) | Derivatives qualifying as hedges (1) | Change in the discount rate used to measure future policy benefits | Change in instrument- specific credit risk of market risk benefits | Foreign currency translation and other adjustments | Total | Net unrealized investment gains (losses) | Derivatives qualifying as hedges (1) | Change in the discount rate used to measure future policy benefits | Change in instrument- specific credit risk of market risk benefits | Foreign currency translation and other adjustments | Total | ||||||||||||||||||||||||||||||||||||
Balances as of April 1, 2023 | $ | (2,500 | ) | $ | 1,274 | $ | (1,628 | ) | $ | (9 | ) | $ | 10 | $ | (2,853 | ) | ||||||||||||||||||||||||||||||||
Balances as of July 1, 2023 | $ | (3,056 | ) | $ | 1,154 | $ | (964 | ) | $ | (9 | ) | $ | 14 | $ | (2,861 | ) | ||||||||||||||||||||||||||||||||
OCI before reclassifications | (584 | ) | (83 | ) | 664 | — | 4 | 1 | (1,741 | ) | (390 | ) | 2,790 | 3 | (5 | ) | 657 | |||||||||||||||||||||||||||||||
Amounts reclassified from (to) OCI | 23 | (37 | ) | — | — | — | (14 | ) | ||||||||||||||||||||||||||||||||||||||||
Amounts reclassified from OCI | 9 | (37 | ) | — | — | 2 | (26 | ) | ||||||||||||||||||||||||||||||||||||||||
Current period OCI | (561 | ) | (120 | ) | 664 | — | 4 | (13 | ) | (1,732 | ) | (427 | ) | 2,790 | 3 | (3 | ) | 631 | ||||||||||||||||||||||||||||||
Balances as of June 30, 2023 before noncontrolling interests | (3,061 | ) | 1,154 | (964 | ) | (9 | ) | 14 | (2,866 | ) | ||||||||||||||||||||||||||||||||||||||
Balances as of September 30, 2023 before noncontrolling interests | (4,788 | ) | 727 | 1,826 | (6 | ) | 11 | (2,230 | ) | |||||||||||||||||||||||||||||||||||||||
Less: change in OCI attributable to noncontrolling interests | (5 | ) | — | — | — | — | (5 | ) | (10 | ) | — | — | — | — | (10 | ) | ||||||||||||||||||||||||||||||||
Balances as of June 30, 2023 | $ | (3,056 | ) | $ | 1,154 | $ | (964 | ) | $ | (9 | ) | $ | 14 | $ | (2,861 | ) | ||||||||||||||||||||||||||||||||
Balances as of September 30, 2023 | $ | (4,778 | ) | $ | 727 | $ | 1,826 | $ | (6 | ) | $ | 11 | $ | (2,220 | ) | |||||||||||||||||||||||||||||||||
(1) | See note 6 for additional information. |
(Amounts in millions) | Net unrealized investment gains (losses) | Derivatives qualifying as hedges (1) | Change in the discount rate used to measure future policy benefits | Change in instrument- specific credit risk of market risk benefits | Foreign currency translation and other adjustments | Total | ||||||||||||||||||
Balances as of April 1, 2022 | $ | 2,151 | $ | 1,789 | $ | (8,447 | ) | $ | (13 | ) | $ | (29 | ) | $ | (4,549 | ) | ||||||||
OCI before reclassifications | (3,701 | ) | (307 | ) | 5,280 | 1 | (7 | ) | 1,266 | |||||||||||||||
Amounts reclassified from (to) OCI | 4 | (37 | ) | — | — | — | (33 | ) | ||||||||||||||||
Current period OCI | (3,697 | ) | (344 | ) | 5,280 | 1 | (7 | ) | 1,233 | |||||||||||||||
Balances as of June 30, 2022 before noncontrolling interests | (1,546 | ) | 1,445 | (3,167 | ) | (12 | ) | (36 | ) | (3,316 | ) | |||||||||||||
Less: change in OCI attributable to | (28 | ) | — | — | — | — | (28 | ) | ||||||||||||||||
Balances as of June 30, 2022 | $ | (1,518 | ) | $ | 1,445 | $ | (3,167 | ) | $ | (12 | ) | $ | (36 | ) | $ | (3,288 | ) | |||||||
(Amounts in millions) | Net unrealized investment gains (losses) | Derivatives qualifying as hedges (1) | Change in the discount rate used to measure future policy benefits | Change in instrument- specific credit risk of market risk benefits | Foreign currency translation and other adjustments | Total | ||||||||||||||||||
Balances as of July 1, 2022 | $ | (1,518 | ) | $ | 1,445 | $ | (3,167 | ) | $ | (12 | ) | $ | (36 | ) | $ | (3,288 | ) | |||||||
OCI before reclassifications | (2,538 | ) | (98 | ) | 3,282 | 1 | — | 647 | ||||||||||||||||
Amounts reclassified from OCI | 21 | (37 | ) | — | — | — | (16 | ) | ||||||||||||||||
Current period OCI | (2,517 | ) | (135 | ) | 3,282 | 1 | — | 631 | ||||||||||||||||
Balances as of September 30, 2022 before noncontrolling interests | (4,035 | ) | 1,310 | 115 | (11 | ) | (36 | ) | (2,657 | ) | ||||||||||||||
Less: change in OCI attributable to noncontrolling interests | (25 | ) | — | — | — | — | (25 | ) | ||||||||||||||||
Balances as of September 30, 2022 | $ | (4,010 | ) | $ | 1,310 | $ | 115 | $ | (11 | ) | $ | (36 | ) | $ | (2,632 | ) | ||||||||
(1) |
(Amounts in millions) | Net unrealized investment gains (losses) | Derivatives qualifying as hedges (1) | Change in the discount rate used to measure future policy benefits | Change in instrument- specific credit risk of market risk benefits | Foreign currency translation and other adjustments | Total | ||||||||||||||||||
Balances as of January 1, 2023 | $ | (3,407 | ) | $ | 1,200 | $ | (403 | ) | $ | (10 | ) | $ | 6 | $ | (2,614 | ) | ||||||||
OCI before reclassifications | 322 | 31 | (561 | ) | 1 | 8 | (199 | ) | ||||||||||||||||
Amounts reclassified from (to) OCI | 36 | (77 | ) | — | — | — | (41 | ) | ||||||||||||||||
Current period OCI | 358 | (46 | ) | (561 | ) | 1 | 8 | (240 | ) | |||||||||||||||
Balances as of June 30, 2023 before noncontrolling interests | (3,049 | ) | 1,154 | (964 | ) | (9 | ) | 14 | (2,854 | ) | ||||||||||||||
Less: change in OCI attributable to noncontrolling | 7 | — | — | — | — | 7 | ||||||||||||||||||
Balances as of June 30, 2023 | $ | (3,056 | ) | $ | 1,154 | $ | (964 | ) | $ | (9 | ) | $ | 14 | $ | (2,861 | ) | ||||||||
See note 6 for additional information. |
(Amounts in millions) | Net unrealized investment gains (losses) | Derivatives qualifying as hedges (1) | Change in the discount rate used to measure future policy benefits | Change in instrument- specific credit risk of market risk benefits | Foreign currency translation and other adjustments | Total | ||||||||||||||||||
Balances as of January 1, 2023 | $ | (3,407 | ) | $ | 1,200 | $ | (403 | ) | $ | (10 | ) | $ | 6 | $ | (2,614 | ) | ||||||||
OCI before reclassifications | (1,419 | ) | (359 | ) | 2,229 | 4 | 3 | 458 | ||||||||||||||||
Amounts reclassified from OCI | 45 | (114 | ) | — | — | 2 | (67 | ) | ||||||||||||||||
Current period OCI | (1,374 | ) | (473 | ) | 2,229 | 4 | 5 | 391 | ||||||||||||||||
Balances as of September 30, 2023 before noncontrolling interests | (4,781 | ) | 727 | 1,826 | (6 | ) | 11 | (2,223 | ) | |||||||||||||||
Less: change in OCI attributable to noncontrolling interests | (3 | ) | — | — | — | — | (3 | ) | ||||||||||||||||
Balances as of September 30, 2023 | $ | (4,778 | ) | $ | 727 | $ | 1,826 | $ | (6 | ) | $ | 11 | $ | (2,220 | ) | |||||||||
(1) | See note 6 for additional information. |
(Amounts in millions) | Net unrealized investment gains (losses) | Derivatives qualifying as hedges (1) | Change in the discount rate used to measure future policy benefits | Change in instrument- specific credit risk of market risk benefits | Foreign currency translation and other adjustments | Total | Net unrealized investment gains (losses) | Derivatives qualifying as hedges (1) | Change in the discount rate used to measure future policy benefits | Change in instrument- specific credit risk of market risk benefits | Foreign currency translation and other adjustments | Total | ||||||||||||||||||||||||||||||||||||
Balances as of January 1, 2022 | $ | 6,077 | $ | 2,025 | $ | (13,918 | ) | $ | (15 | ) | $ | (24 | ) | $ | (5,855 | ) | $ | 6,077 | $ | 2,025 | $ | (13,918 | ) | $ | (15 | ) | $ | (24 | ) | $ | (5,855 | ) | ||||||||||||||||
OCI before reclassifications | (7,674 | ) | (506 | ) | 10,751 | 3 | (12 | ) | 2,562 | (10,212 | ) | (604 | ) | 14,033 | 4 | (12 | ) | 3,209 | ||||||||||||||||||||||||||||||
Amounts reclassified from (to) OCI | 10 | (74 | ) | — | — | — | (64 | ) | ||||||||||||||||||||||||||||||||||||||||
Amounts reclassified from OCI | 31 | (111 | ) | — | — | — | (80 | ) | ||||||||||||||||||||||||||||||||||||||||
Current period OCI | (7,664 | ) | (580 | ) | 10,751 | 3 | (12 | ) | 2,498 | (10,181 | ) | (715 | ) | 14,033 | 4 | (12 | ) | 3,129 | ||||||||||||||||||||||||||||||
Balances as of June 30, 2022 before noncontrolling interests | (1,587 | ) | 1,445 | (3,167 | ) | (12 | ) | (36 | ) | (3,357 | ) | |||||||||||||||||||||||||||||||||||||
Balances as of September 30, 2022 before noncontrolling interests | (4,104 | ) | 1,310 | 115 | (11 | ) | (36 | ) | (2,726 | ) | ||||||||||||||||||||||||||||||||||||||
Less: change in OCI attributable to noncontrolling interests | (69 | ) | — | — | — | — | (69 | ) | (94 | ) | — | — | — | — | (94 | ) | ||||||||||||||||||||||||||||||||
Balances as of June 30, 2022 | $ | (1,518 | ) | $ | 1,445 | $ | (3,167 | ) | $ | (12 | ) | $ | (36 | ) | $ | (3,288 | ) | |||||||||||||||||||||||||||||||
Balances as of September 30, 2022 | $ | (4,010 | ) | $ | 1,310 | $ | 115 | $ | (11 | ) | $ | (36 | ) | $ | (2,632 | ) | ||||||||||||||||||||||||||||||||
(1) | See note 6 for additional information. |
Amount reclassified from accumulated other comprehensive income (loss) | Affected line item in the condensed consolidated statements of income | Amount reclassified from accumulated other comprehensive income (loss) | Affected line item in the condensed consolidated statements of income | |||||||||||||||||||||||||||||||||
Three months ended June 30, | Six months ended June 30, | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||||||
(Amounts in millions) | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||
Net unrealized investment (gains) losses: | ||||||||||||||||||||||||||||||||||||
Unrealized (gains) losses on investments | $ | 30 | $ | 4 | $ | 46 | $ | 12 | Net investment (gains) losses | $ | 11 | $ | 27 | $ | 57 | $ | 39 | Net investment (gains) losses | ||||||||||||||||||
Income taxes | (7 | ) | — | (10 | ) | (2 | ) | Provision for income taxes | (2 | ) | (6 | ) | (12 | ) | (8 | ) | Provision for income taxes | |||||||||||||||||||
Total | $ | 23 | $ | 4 | $ | 36 | $ | 10 | $ | 9 | $ | 21 | $ | 45 | $ | 31 | ||||||||||||||||||||
Derivatives qualifying as hedges: | ||||||||||||||||||||||||||||||||||||
Interest rate swaps hedging assets | $ | (55 | ) | $ | (57 | ) | $ | (109 | ) | $ | (112 | ) | Net investment income | $ | (56 | ) | $ | (55 | ) | $ | (165 | ) | $ | (167 | ) | Net investment income | ||||||||||
Interest rate swaps hedging assets | (3 | ) | — | (8 | ) | (2 | ) | Net investment (gains) losses | — | (3 | ) | (8 | ) | (5 | ) | Net investment (gains) losses | ||||||||||||||||||||
Interest rate swaps hedging liabilities | — | 1 | 1 | 2 | Interest expense | 1 | — | 2 | 2 | Interest expense | ||||||||||||||||||||||||||
Interest rate swaps hedging liabilities | — | — | (1 | ) | — | Net investment (gains) losses | — | — | (1 | ) | — | Net investment (gains) losses | ||||||||||||||||||||||||
Foreign currency swaps | — | — | — | (1 | ) | Net investment income | — | — | — | (1 | ) | Net investment income | ||||||||||||||||||||||||
Foreign currency swaps | — | — | (2 | ) | — | Net investment (gains) losses | — | — | (2 | ) | — | Net investment (gains) losses | ||||||||||||||||||||||||
Income taxes | 21 | 19 | 42 | 39 | Provision for income taxes | 18 | 21 | 60 | 60 | Provision for income taxes | ||||||||||||||||||||||||||
Total | $ | (37 | ) | $ | (37 | ) | $ | (77 | ) | $ | (74 | ) | $ | (37 | ) | $ | (37 | ) | $ | (114 | ) | $ | (111 | ) | ||||||||||||
insurance and investment contracts, including commissions, policy issuance expenses and other underwriting and general operating costs. These costs and expenses are net of amounts that are capitalized and deferred, which are costs and expenses that are related directly to the successful acquisition of new or renewal insurance policies and investment contracts, such as first-year commissions in excess of ultimate renewal commissions and other policy issuance expenses. We allocate corporate expenses to each of our operating segments using various methodologies. |
Three months ended June 30, | Increase (decrease) and percentage change | Three months ended September 30, | Increase (decrease) and percentage change | |||||||||||||||||||||||||||||
(Amounts in millions) | 2023 | 2022 | 2023 vs. 2022 | 2023 | 2022 | 2023 vs. 2022 | ||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||
Premiums | $ | 902 | $ | 916 | $ | (14 | ) | (2 | )% | $ | 915 | $ | 929 | $ | (14 | ) | (2 | )% | ||||||||||||||
Net investment income | 785 | 787 | (2 | ) | — | % | 801 | 808 | (7 | ) | (1 | )% | ||||||||||||||||||||
Net investment gains (losses) | 39 | 19 | 20 | 105 | % | (43 | ) | (58 | ) | 15 | 26 | % | ||||||||||||||||||||
Policy fees and other income | 166 | 165 | 1 | 1 | % | 158 | 169 | (11 | ) | (7 | )% | |||||||||||||||||||||
Total revenues | 1,892 | 1,887 | 5 | — | % | 1,831 | 1,848 | (17 | ) | (1 | )% | |||||||||||||||||||||
Benefits and expenses: | ||||||||||||||||||||||||||||||||
Benefits and other changes in policy reserves | 1,175 | 768 | 407 | 53 | % | 1,199 | 1,159 | 40 | 3 | % | ||||||||||||||||||||||
Liability remeasurement (gains) losses | 70 | 24 | 46 | 192 | % | 116 | 17 | 99 | NM | (1) | ||||||||||||||||||||||
Changes in fair value of market risk benefits and associated hedges | (19 | ) | 20 | (39 | ) | (195 | )% | (24 | ) | (27 | ) | 3 | 11 | % | ||||||||||||||||||
Interest credited | 126 | 126 | — | — | % | 127 | 128 | (1 | ) | (1 | )% | |||||||||||||||||||||
Acquisition and operating expenses, net of deferrals | 226 | 579 | (353 | ) | (61 | )% | 228 | 245 | (17 | ) | (7 | )% | ||||||||||||||||||||
Amortization of deferred acquisition costs and intangibles | 64 | 84 | (20 | ) | (24 | )% | 65 | 80 | (15 | ) | (19 | )% | ||||||||||||||||||||
Interest expense | 29 | 26 | 3 | 12 | % | 30 | 26 | 4 | 15 | % | ||||||||||||||||||||||
Total benefits and expenses | 1,671 | 1,627 | 44 | 3 | % | 1,741 | 1,628 | 113 | 7 | % | ||||||||||||||||||||||
Income from continuing operations before income taxes | 221 | 260 | (39 | ) | (15 | )% | 90 | 220 | (130 | ) | (59 | )% | ||||||||||||||||||||
Provision for income taxes | 55 | 62 | (7 | ) | (11 | )% | 30 | 54 | (24 | ) | (44 | )% | ||||||||||||||||||||
Income from continuing operations | 166 | 198 | (32 | ) | (16 | )% | 60 | 166 | (106 | ) | (64 | )% | ||||||||||||||||||||
Income (loss) from discontinued operations, net of taxes | 2 | (1 | ) | 3 | NM | (1) | ||||||||||||||||||||||||||
Income from discontinued operations, net of taxes | — | 5 | (5 | ) | (100 | )% | ||||||||||||||||||||||||||
Net income | 168 | 197 | (29 | ) | (15 | )% | 60 | 171 | (111 | ) | (65 | )% | ||||||||||||||||||||
Less: net income from continuing operations attributable to noncontrolling interests | 31 | 38 | (7 | ) | (18 | )% | 31 | 35 | (4 | ) | (11 | )% | ||||||||||||||||||||
Less: net income from discontinued operations attributable to noncontrolling interests | — | — | — | — | % | — | — | — | — | % | ||||||||||||||||||||||
Net income available to Genworth Financial, Inc.’s common stockholders | $ | 137 | $ | 159 | $ | (22 | ) | (14 | )% | $ | 29 | $ | 136 | $ | (107 | ) | (79 | )% | ||||||||||||||
Net income available to Genworth Financial, Inc.’s common stockholders: | ||||||||||||||||||||||||||||||||
Income from continuing operations available to Genworth Financial, Inc.’s common stockholders | $ | 135 | $ | 160 | $ | (25 | ) | (16 | )% | $ | 29 | $ | 131 | $ | (102 | ) | (78 | )% | ||||||||||||||
Income (loss) from discontinued operations available to Genworth Financial, Inc.’s common stockholders | 2 | (1 | ) | 3 | NM | (1) | ||||||||||||||||||||||||||
Income from discontinued operations available to Genworth Financial, Inc.’s common stockholders | — | 5 | (5 | ) | (100 | )% | ||||||||||||||||||||||||||
Net income available to Genworth Financial, Inc.’s common stockholders | $ | 137 | $ | 159 | $ | (22 | ) | (14 | )% | $ | 29 | $ | 136 | $ | (107 | ) | (79 | )% | ||||||||||||||
(1) | We define “NM” as not meaningful for increases or decreases greater than 200%. |
Six months ended June 30, | Increase (decrease) and percentage change | Nine months ended September 30, | Increase (decrease) and percentage change | |||||||||||||||||||||||||||||
(Amounts in millions) | 2023 | 2022 | 2023 vs. 2022 | 2023 | 2022 | 2023 vs. 2022 | ||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||
Premiums | $ | 1,817 | $ | 1,833 | $ | (16 | ) | (1 | )% | $ | 2,732 | $ | 2,762 | $ | (30 | ) | (1 | )% | ||||||||||||||
Net investment income | 1,572 | 1,551 | 21 | 1 | % | 2,373 | 2,359 | 14 | 1 | % | ||||||||||||||||||||||
Net investment gains (losses) | 28 | 61 | (33 | ) | (54 | )% | (15 | ) | 3 | (18 | ) | NM | (1) | |||||||||||||||||||
Policy fees and other income | 329 | 335 | (6 | ) | (2 | )% | 487 | 504 | (17 | ) | (3 | )% | ||||||||||||||||||||
Total revenues | 3,746 | 3,780 | (34 | ) | (1 | )% | 5,577 | 5,628 | (51 | ) | (1 | )% | ||||||||||||||||||||
Benefits and expenses: | ||||||||||||||||||||||||||||||||
Benefits and other changes in policy reserves | 2,351 | 1,935 | 416 | 21 | % | 3,550 | 3,094 | 456 | 15 | % | ||||||||||||||||||||||
Liability remeasurement (gains) losses | 55 | (40 | ) | 95 | NM | (1) | 171 | (23 | ) | 194 | NM | (1) | ||||||||||||||||||||
Changes in fair value of market risk benefits and associated hedges | (2 | ) | (21 | ) | 19 | 90 | % | (26 | ) | (48 | ) | 22 | 46 | % | ||||||||||||||||||
Interest credited | 252 | 251 | 1 | — | % | 379 | 379 | — | — | % | ||||||||||||||||||||||
Acquisition and operating expenses, net of deferrals | 466 | 815 | (349 | ) | (43 | )% | 694 | 1,060 | (366 | ) | (35 | )% | ||||||||||||||||||||
Amortization of deferred acquisition costs and intangibles | 136 | 172 | (36 | ) | (21 | )% | 201 | 252 | (51 | ) | (20 | )% | ||||||||||||||||||||
Interest expense | 58 | 52 | 6 | 12 | % | 88 | 78 | 10 | 13 | % | ||||||||||||||||||||||
Total benefits and expenses | 3,316 | 3,164 | 152 | 5 | % | 5,057 | 4,792 | 265 | 6 | % | ||||||||||||||||||||||
Income from continuing operations before income taxes | 430 | 616 | (186 | ) | (30 | )% | 520 | 836 | (316 | ) | (38 | )% | ||||||||||||||||||||
Provision for income taxes | 110 | 146 | (36 | ) | (25 | )% | 140 | 200 | (60 | ) | (30 | )% | ||||||||||||||||||||
Income from continuing operations | 320 | 470 | (150 | ) | (32 | )% | 380 | 636 | (256 | ) | (40 | )% | ||||||||||||||||||||
Income (loss) from discontinued operations, net of taxes | 2 | (3 | ) | 5 | 167 | % | ||||||||||||||||||||||||||
Income from discontinued operations, net of taxes | 2 | 2 | — | — | % | |||||||||||||||||||||||||||
Net income | 322 | 467 | (145 | ) | (31 | )% | 382 | 638 | (256 | ) | (40 | )% | ||||||||||||||||||||
Less: net income from continuing operations attributable to noncontrolling interests | 63 | 68 | (5 | ) | (7 | )% | 94 | 103 | (9 | ) | (9 | )% | ||||||||||||||||||||
Less: net income from discontinued operations attributable to noncontrolling interests | — | — | — | — | % | — | — | — | — | % | ||||||||||||||||||||||
Net income available to Genworth Financial, Inc.’s common stockholders | $ | 259 | $ | 399 | $ | (140 | ) | (35 | )% | $ | 288 | $ | 535 | $ | (247 | ) | (46 | )% | ||||||||||||||
Net income available to Genworth Financial, Inc.’s common stockholders: | ||||||||||||||||||||||||||||||||
Income from continuing operations available to Genworth Financial, Inc.’s common stockholders | $ | 257 | $ | 402 | $ | (145 | ) | (36 | )% | $ | 286 | $ | 533 | $ | (247 | ) | (46 | )% | ||||||||||||||
Income (loss) from discontinued operations available to Genworth Financial, Inc.’s common stockholders | 2 | (3 | ) | 5 | 167 | % | ||||||||||||||||||||||||||
Income from discontinued operations available to Genworth Financial, Inc.’s common stockholders | 2 | 2 | — | — | % | |||||||||||||||||||||||||||
Net income available to Genworth Financial, Inc.’s common stockholders | $ | 259 | $ | 399 | $ | (140 | ) | (35 | )% | $ | 288 | $ | 535 | $ | (247 | ) | (46 | )% | ||||||||||||||
(1) | We define “NM” as not meaningful for increases or decreases greater than 200%. |
Three months ended June 30, | Six months ended June 30, | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||
(Amounts in millions) | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||
Net income available to Genworth Financial, Inc.’s common stockholders | $ | 137 | $ | 159 | $ | 259 | $ | 399 | $ | 29 | $ | 136 | $ | 288 | $ | 535 | ||||||||||||||||
Add: net income from continuing operations attributable to noncontrolling interests | 31 | 38 | 63 | 68 | 31 | 35 | 94 | 103 | ||||||||||||||||||||||||
Add: net income from discontinued operations attributable to noncontrolling interests | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Net income | 168 | 197 | 322 | 467 | 60 | 171 | 382 | 638 | ||||||||||||||||||||||||
Less: income (loss) from discontinued operations, net of taxes | 2 | (1 | ) | 2 | (3 | ) | ||||||||||||||||||||||||||
Less: income from discontinued operations, net of taxes | — | 5 | 2 | 2 | ||||||||||||||||||||||||||||
Income from continuing operations | 166 | 198 | 320 | 470 | 60 | 166 | 380 | 636 | ||||||||||||||||||||||||
Less: net income from continuing operations attributable to noncontrolling interests | 31 | 38 | 63 | 68 | 31 | 35 | 94 | 103 | ||||||||||||||||||||||||
Income from continuing operations available to Genworth Financial, Inc.’s common stockholders | 135 | 160 | 257 | 402 | 29 | 131 | 286 | 533 | ||||||||||||||||||||||||
Adjustments to income from continuing operations available to Genworth Financial, Inc.’s common stockholders: | ||||||||||||||||||||||||||||||||
Net investment (gains) losses, net (1) | (41 | ) | (19 | ) | (30 | ) | (61 | ) | 43 | 58 | 13 | (3 | ) | |||||||||||||||||||
Changes in fair value of market risk benefits attributable to interest rates, equity markets and associated hedges (2) | (23 | ) | 8 | (9 | ) | (46 | ) | (26 | ) | (32 | ) | (35 | ) | (78 | ) | |||||||||||||||||
(Gains) losses on early extinguishment of debt (3) | — | 1 | (1 | ) | 4 | — | 3 | (1 | ) | 7 | ||||||||||||||||||||||
Expenses related to restructuring | 1 | 1 | 4 | 1 | — | — | 4 | 1 | ||||||||||||||||||||||||
Pension plan termination costs | — | 6 | — | 6 | ||||||||||||||||||||||||||||
Taxes on adjustments | 13 | 2 | 8 | 22 | (4 | ) | (8 | ) | 4 | 14 | ||||||||||||||||||||||
Adjusted operating income available to Genworth Financial, Inc.’s common stockholders | $ | 85 | $ | 153 | $ | 229 | $ | 322 | $ | 42 | $ | 158 | $ | 271 | $ | 480 | ||||||||||||||||
(1) | For the |
(2) |
(3) | During the million.pre-tax gain of $1 million. During the three and pre-tax make-whole premium of $2 million and wrote off $1 million of bond consent fees and deferred borrowing costs related to the early redemption of Genworth Holdings’ senior notes originally scheduled to mature in 2024 (“2024 Notes”). Additionally, during the nine months ended September 30, 2022, we repurchased $130 millionpre-tax loss of |
Three months ended June 30, | Increase (decrease) and percentage change | Six months ended June 30, | Increase (decrease) and percentage change | Three months ended September 30, | Increase (decrease) and percentage change | Nine months ended September 30, | Increase (decrease) and percentage change | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Amounts in millions, except per share amounts) | 2023 | 2022 | 2023 vs. 2022 | 2023 | 2022 | 2023 vs. 2022 | 2023 | 2022 | 2023 vs. 2022 | 2023 | 2022 | 2023 vs. 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Income from continuing operations available to Genworth Financial, Inc.’s common stockholders per share: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basic | $ | 0.28 | $ | 0.32 | $ | (0.04 | ) | (13 | )% | $ | 0.53 | $ | 0.79 | $ | (0.26 | ) | (33 | )% | $ | 0.06 | $ | 0.26 | $ | (0.20 | ) | (77 | )% | $ | 0.60 | $ | 1.05 | $ | (0.45 | ) | (43 | )% | ||||||||||||||||||||||||||||
Diluted | $ | 0.28 | $ | 0.31 | $ | (0.03 | ) | (10 | )% | $ | 0.53 | $ | 0.78 | $ | (0.25 | ) | (32 | )% | $ | 0.06 | $ | 0.26 | $ | (0.20 | ) | (77 | )% | $ | 0.59 | $ | 1.04 | $ | (0.45 | ) | (43 | )% | ||||||||||||||||||||||||||||
Net income available to Genworth Financial, Inc.’s common stockholders per share: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basic | $ | 0.29 | $ | 0.31 | $ | (0.02 | ) | (6 | )% | $ | 0.54 | $ | 0.79 | $ | (0.25 | ) | (32 | )% | $ | 0.06 | $ | 0.27 | $ | (0.21 | ) | (78 | )% | $ | 0.61 | $ | 1.05 | $ | (0.44 | ) | (42 | )% | ||||||||||||||||||||||||||||
Diluted | $ | 0.29 | $ | 0.31 | $ | (0.02 | ) | (6 | )% | $ | 0.53 | $ | 0.77 | $ | (0.24 | ) | (31 | )% | $ | 0.06 | $ | 0.27 | $ | (0.21 | ) | (78 | )% | $ | 0.60 | $ | 1.04 | $ | (0.44 | ) | (42 | )% | ||||||||||||||||||||||||||||
Adjusted operating income available to Genworth Financial, Inc.’s common stockholders per share: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basic | $ | 0.18 | $ | 0.30 | $ | (0.12 | ) | (40 | )% | $ | 0.47 | $ | 0.63 | $ | (0.16 | ) | (25 | )% | $ | 0.09 | $ | 0.31 | $ | (0.22 | ) | (71 | )% | $ | 0.57 | $ | 0.95 | $ | (0.38 | ) | (40 | )% | ||||||||||||||||||||||||||||
Diluted | $ | 0.18 | $ | 0.30 | $ | (0.12 | ) | (40 | )% | $ | 0.47 | $ | 0.62 | $ | (0.15 | ) | (24 | )% | $ | 0.09 | $ | 0.31 | $ | (0.22 | ) | (71 | )% | $ | 0.56 | $ | 0.93 | $ | (0.37 | ) | (40 | )% | ||||||||||||||||||||||||||||
Weighted-average common shares outstanding: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basic | 473.2 | 508.9 | 482.7 | 508.6 | 460.5 | 503.8 | 475.3 | 507.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Diluted | 478.1 | 514.1 | 489.1 | 515.7 | 466.0 | 509.3 | 481.4 | 513.6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three months ended June 30, | Increase (decrease) and percentage change | Six months ended June 30, | Increase (decrease) and percentage change | Three months ended September 30, | Increase (decrease) and percentage change | Nine months ended September 30, | Increase (decrease) and percentage change | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Amounts in millions) | 2023 | 2022 | 2023 vs. 2022 | 2023 | 2022 | 2023 vs. 2022 | 2023 | 2022 | 2023 vs. 2022 | 2023 | 2022 | 2023 vs. 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Enact segment | $ | 146 | $ | 167 | $ | (21 | ) | (13 | )% | $ | 289 | $ | 302 | $ | (13 | ) | (4 | )% | $ | 134 | $ | 156 | $ | (22 | ) | (14 | )% | $ | 423 | $ | 458 | $ | (35 | ) | (8 | )% | ||||||||||||||||||||||||||||
Long-Term Care Insurance segment | (43 | ) | 17 | (60 | ) | NM | (1) | (20 | ) | 90 | (110 | ) | (122 | )% | (71 | ) | 26 | (97 | ) | NM | (1) | (91 | ) | 116 | (207 | ) | (178 | )% | ||||||||||||||||||||||||||||||||||||
Life and Annuities Segment: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Life and Annuities segment: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Life insurance | (17 | ) | (37 | ) | 20 | 54 | % | (44 | ) | (84 | ) | 40 | 48 | % | (25 | ) | (28 | ) | 3 | 11 | % | (69 | ) | (112 | ) | 43 | 38 | % | ||||||||||||||||||||||||||||||||||||
Fixed annuities | 10 | 20 | (10 | ) | (50 | )% | 24 | 33 | (9 | ) | (27 | )% | 17 | 15 | 2 | 13 | % | 41 | 48 | (7 | ) | (15 | )% | |||||||||||||||||||||||||||||||||||||||||
Variable annuities | 9 | 2 | 7 | NM | (1) | 18 | 6 | 12 | 200 | % | 5 | 7 | (2 | ) | (29 | )% | 23 | 13 | 10 | 77 | % | |||||||||||||||||||||||||||||||||||||||||||
Life and Annuities segment | 2 | (15 | ) | 17 | 113 | % | (2 | ) | (45 | ) | 43 | 96 | % | (3 | ) | (6 | ) | 3 | 50 | % | (5 | ) | (51 | ) | 46 | 90 | % | |||||||||||||||||||||||||||||||||||||
Corporate and Other | (20 | ) | (16 | ) | (4 | ) | (25 | )% | (38 | ) | (25 | ) | (13 | ) | (52 | )% | (18 | ) | (18 | ) | — | — | % | (56 | ) | (43 | ) | (13 | ) | (30 | )% | |||||||||||||||||||||||||||||||||
Adjusted operating income available to Genworth Financial, Inc.’s common stockholders | $ | 85 | $ | 153 | $ | (68 | ) | (44 | )% | $ | 229 | $ | 322 | $ | (93 | ) | (29 | )% | $ | 42 | $ | 158 | $ | (116 | ) | (73 | )% | $ | 271 | $ | 480 | $ | (209 | ) | (44 | )% | ||||||||||||||||||||||||||||
(1) | We define “NM” as not meaningful for increases or decreases greater than 200%. |
Three months ended June 30, | Increase (decrease) and percentage change | Three months ended September 30, | Increase (decrease) and percentage change | |||||||||||||||||||||||||||||
(Amounts in millions) | 2023 | 2022 | 2023 vs. 2022 | 2023 | 2022 | 2023 vs. 2022 | ||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||
Premiums | $ | 239 | $ | 238 | $ | 1 | — | % | $ | 243 | $ | 235 | $ | 8 | 3 | % | ||||||||||||||||
Net investment income | 50 | 36 | 14 | 39 | % | 55 | 39 | 16 | 41 | % | ||||||||||||||||||||||
Net investment gains (losses) | (13 | ) | (1 | ) | (12 | ) | NM | (1) | — | — | — | — | % | |||||||||||||||||||
Policy fees and other income | 1 | — | 1 | NM | (1) | 1 | 1 | — | — | % | ||||||||||||||||||||||
Total revenues | 277 | 273 | 4 | 1 | % | 299 | 275 | 24 | 9 | % | ||||||||||||||||||||||
Benefits and expenses: | ||||||||||||||||||||||||||||||||
Benefits and other changes in policy reserves | (4 | ) | (62 | ) | 58 | 94 | % | 18 | (40 | ) | 58 | 145 | % | |||||||||||||||||||
Acquisition and operating expenses, net of deferrals | 52 | 58 | (6 | ) | (10 | )% | 52 | 55 | (3 | ) | (5 | )% | ||||||||||||||||||||
Amortization of deferred acquisition costs and intangibles | 2 | 3 | (1 | ) | (33 | )% | 3 | 4 | (1 | ) | (25 | )% | ||||||||||||||||||||
Interest expense | 13 | 13 | — | — | % | 13 | 12 | 1 | 8 | % | ||||||||||||||||||||||
Total benefits and expenses | 63 | 12 | 51 | NM | (1) | 86 | 31 | 55 | 177 | % | ||||||||||||||||||||||
Income from continuing operations before income taxes | 214 | 261 | (47 | ) | (18 | )% | 213 | 244 | (31 | ) | (13 | )% | ||||||||||||||||||||
Provision for income taxes | 46 | 57 | (11 | ) | (19 | )% | 48 | 53 | (5 | ) | (9 | )% | ||||||||||||||||||||
Income from continuing operations | 168 | 204 | (36 | ) | (18 | )% | 165 | 191 | (26 | ) | (14 | )% | ||||||||||||||||||||
Less: net income from continuing operations attributable to noncontrolling interests | 31 | 38 | (7 | ) | (18 | )% | 31 | 35 | (4 | ) | (11 | )% | ||||||||||||||||||||
Income from continuing operations available to Genworth Financial, Inc.’s common stockholders | 137 | 166 | (29 | ) | (17 | )% | 134 | 156 | (22 | ) | (14 | )% | ||||||||||||||||||||
Adjustments to income from continuing operations available to Genworth Financial, Inc.’s common stockholders: | ||||||||||||||||||||||||||||||||
Net investment (gains) losses, net | 11 | 1 | 10 | NM | (1) | — | — | — | — | % | ||||||||||||||||||||||
Taxes on adjustments | (2 | ) | — | (2 | ) | NM | (1) | — | — | — | — | % | ||||||||||||||||||||
Adjusted operating income available to Genworth Financial, Inc.’s common stockholders | $ | 146 | $ | 167 | $ | (21 | ) | (13 | )% | $ | 134 | $ | 156 | $ | (22 | ) | (14 | )% | ||||||||||||||
Nine months ended September 30, | Increase (decrease) and percentage change | |||||||||||||||
(Amounts in millions) | 2023 | 2022 | 2023 vs. 2022 | |||||||||||||
Revenues: | ||||||||||||||||
Premiums | $ | 717 | $ | 707 | $ | 10 | 1 | % | ||||||||
Net investment income | 151 | 110 | 41 | 37 | % | |||||||||||
Net investment gains (losses) | (13 | ) | (1 | ) | (12 | ) | NM | (1) | ||||||||
Policy fees and other income | 2 | 2 | — | — | % | |||||||||||
Total revenues | 857 | 818 | 39 | 5 | % | |||||||||||
Benefits and expenses: | ||||||||||||||||
Benefits and other changes in policy reserves | 3 | (112 | ) | 115 | 103 | % | ||||||||||
Acquisition and operating expenses, net of deferrals | 156 | 167 | (11 | ) | (7 | )% | ||||||||||
Amortization of deferred acquisition costs and intangibles | 8 | 10 | (2 | ) | (20 | )% | ||||||||||
Interest expense | 39 | 38 | 1 | 3 | % | |||||||||||
Total benefits and expenses | 206 | 103 | 103 | 100 | % | |||||||||||
Income from continuing operations before income taxes | 651 | 715 | (64 | ) | (9 | )% | ||||||||||
Provision for income taxes | 143 | 155 | (12 | ) | (8 | )% | ||||||||||
Income from continuing operations | 508 | 560 | (52 | ) | (9 | )% | ||||||||||
Less: net income from continuing operations attributable to noncontrolling interests | 94 | 103 | (9 | ) | (9 | )% | ||||||||||
Income from continuing operations available to Genworth Financial, Inc.’s common stockholders | 414 | 457 | (43 | ) | (9 | )% | ||||||||||
Adjustments to income from continuing operations available to Genworth Financial, Inc.’s common stockholders: | ||||||||||||||||
Net investment (gains) losses, net (2) | 11 | 1 | 10 | NM | (1) | |||||||||||
Taxes on adjustments | (2 | ) | — | (2 | ) | NM | (1) | |||||||||
Adjusted operating income available to Genworth Financial, Inc.’s common stockholders | $ | 423 | $ | 458 | $ | (35 | ) | (8 | )% | |||||||
(1) | We define “NM” as not meaningful for increases or decreases greater than 200%. |
(2) | For the |
Six months ended June 30, | Increase (decrease) and percentage change | |||||||||||||||
(Amounts in millions) | 2023 | 2022 | 2023 vs. 2022 | |||||||||||||
Revenues: | ||||||||||||||||
Premiums | $ | 474 | $ | 472 | $ | 2 | — | % | ||||||||
Net investment income | 96 | 71 | 25 | 35 | % | |||||||||||
Net investment gains (losses) | (13 | ) | (1 | ) | (12 | ) | NM | (1) | ||||||||
Policy fees and other income | 1 | 1 | — | — | % | |||||||||||
Total revenues | 558 | 543 | 15 | 3 | % | |||||||||||
Benefits and expenses: | ||||||||||||||||
Benefits and other changes in policy reserves | (15 | ) | (72 | ) | 57 | 79 | % | |||||||||
Acquisition and operating expenses, net of deferrals | 104 | 112 | (8 | ) | (7 | )% | ||||||||||
Amortization of deferred acquisition costs and intangibles | 5 | 6 | (1 | ) | (17 | )% | ||||||||||
Interest expense | 26 | 26 | — | — | % | |||||||||||
Total benefits and expenses | 120 | 72 | 48 | 67 | % | |||||||||||
Income from continuing operations before income taxes | 438 | 471 | (33 | ) | (7 | )% | ||||||||||
Provision for income taxes | 95 | 102 | (7 | ) | (7 | )% | ||||||||||
Income from continuing operations | 343 | 369 | (26 | ) | (7 | )% | ||||||||||
Less: net income from continuing operations attributable to noncontrolling interests | 63 | 68 | (5 | ) | (7 | )% | ||||||||||
Income from continuing operations available to Genworth Financial, Inc.’s common stockholders | 280 | 301 | (21 | ) | (7 | )% | ||||||||||
Adjustments to income from continuing operations available to Genworth Financial, Inc.’s common stockholders: | ||||||||||||||||
Net investment (gains) losses, net (2) | 11 | 1 | 10 | NM | (1) | |||||||||||
Taxes on adjustments | (2 | ) | — | (2 | ) | NM | (1) | |||||||||
Adjusted operating income available to Genworth Financial, Inc.’s common stockholders | $ | 289 | $ | 302 | $ | (13 | ) | (4 | )% | |||||||
As of June 30, | Increase (decrease) and percentage change | September 30, | Increase (decrease) and percentage change | |||||||||||||||||||||||||||||
(Amounts in millions) | 2023 | 2022 | 2023 vs. 2022 | 2023 | 2022 | 2023 vs. 2022 | ||||||||||||||||||||||||||
Primary insurance in-force (1) | $ | 257,816 | $ | 237,563 | $ | 20,253 | 9 | % | $ | 262,014 | $ | 241,813 | $ | 20,201 | 8 | % | ||||||||||||||||
Risk in-force: | ||||||||||||||||||||||||||||||||
Primary | $ | 65,714 | $ | 59,911 | $ | 5,803 | 10 | % | $ | 67,056 | $ | 61,124 | $ | 5,932 | 10 | % | ||||||||||||||||
Pool | 73 | 89 | (16 | ) | (18 | )% | 70 | 84 | (14 | ) | (17 | )% | ||||||||||||||||||||
Total risk in-force | $ | 65,787 | $ | 60,000 | $ | 5,787 | 10 | % | $ | 67,126 | $ | 61,208 | $ | 5,918 | 10 | % | ||||||||||||||||
(1) | Primary insurance in-force represents the aggregate unpaid principal balance for loans Enact insures. |
Three months ended June 30, | Increase (decrease) and percentage change | Six months ended June 30, | Increase (decrease) and percentage change | |||||||||||||||||||||||||||||
(Amounts in millions) | 2023 | 2022 | 2023 vs. 2022 | 2023 | 2022 | 2023 vs. 2022 | ||||||||||||||||||||||||||
New insurance written | $ | 15,083 | $ | 17,448 | $ | (2,365 | ) | (14 | )% | $ | 28,237 | $ | 36,271 | $ | (8,034 | ) | (22 | )% |
Three months ended September 30, | Increase (decrease) and percentage change | Nine months ended September 30, | Increase (decrease) and percentage change | |||||||||||||||||||||||||||||
(Amounts in millions) | 2023 | 2022 | 2023 vs. 2022 | 2023 | 2022 | 2023 vs. 2022 | ||||||||||||||||||||||||||
New insurance written | $ | 14,391 | $ | 15,069 | $ | (678 | ) | (4 | )% | $ | 42,628 | $ | 51,340 | $ | (8,712 | ) | (17 | )% |
Three months ended June 30, | Increase (decrease) | Six months ended June 30, | Increase (decrease) | Three months ended September 30, | Increase (decrease) | Nine months ended September 30, | Increase (decrease) | |||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | 2023 vs. 2022 | 2023 | 2022 | 2023 vs. 2022 | 2023 | 2022 | 2023 vs. 2022 | 2023 | 2022 | 2023 vs. 2022 | |||||||||||||||||||||||||||||||||||||
Loss ratio | (2 | )% | (26 | )% | 24 | % | (3 | )% | (15 | )% | 12 | % | 7 | % | (17 | )% | 24 | % | — | % | (16 | )% | 16 | % | ||||||||||||||||||||||||
Expense ratio | 23 | % | 26 | % | (3 | )% | 23 | % | 25 | % | (2 | )% | 23 | % | 25 | % | (2 | )% | 23 | % | 25 | % | (2 | )% |
(Amounts in millions) | 2023 | 2022 | 2023 | 2022 | ||||||||||||
Primary insurance in-force by loan-to-value ratio at origination: | ||||||||||||||||
95.01% and above | $ | 42,459 | $ | 37,636 | $ | 44,071 | $ | 38,099 | ||||||||
90.01% to 95.00% | 107,448 | 99,303 | 109,019 | 101,164 | ||||||||||||
85.01% to 90.00% | 75,521 | 67,866 | 77,121 | 69,803 | ||||||||||||
85.00% and below | 32,388 | 32,758 | 31,803 | 32,747 | ||||||||||||
Total | $ | 257,816 | $ | 237,563 | $ | 262,014 | $ | 241,813 | ||||||||
Primary risk in-force by loan-to-value ratio at origination: | ||||||||||||||||
95.01% and above | $ | 12,086 | $ | 10,647 | $ | 12,595 | $ | 10,809 | ||||||||
90.01% to 95.00% | 31,220 | 28,838 | 31,696 | 29,379 | ||||||||||||
85.01% to 90.00% | 18,518 | 16,517 | 18,945 | 17,019 | ||||||||||||
85.00% and below | 3,890 | 3,909 | 3,820 | 3,917 | ||||||||||||
Total | $ | 65,714 | $ | 59,911 | $ | 67,056 | $ | 61,124 | ||||||||
Primary insurance in-force by FICO (1) score at origination: | ||||||||||||||||
Over 760 | $ | 107,427 | $ | 96,625 | $ | 109,701 | $ | 99,177 | ||||||||
740-759 | 42,074 | 37,853 | 42,899 | 38,731 | ||||||||||||
720-739 | 36,324 | 33,263 | 36,889 | 33,874 | ||||||||||||
700-719 | 29,514 | 28,136 | 29,818 | 28,384 | ||||||||||||
680-699 | 21,908 | 21,221 | 21,993 | 21,294 | ||||||||||||
660-679 (2) | 11,188 | 10,822 | 11,351 | 10,842 | ||||||||||||
640-659 | 6,133 | 6,154 | 6,166 | 6,115 | ||||||||||||
620-639 | 2,576 | 2,725 | 2,548 | 2,663 | ||||||||||||
<620 | 672 | 764 | 649 | 733 | ||||||||||||
Total | $ | 257,816 | $ | 237,563 | $ | 262,014 | $ | 241,813 | ||||||||
Primary risk in-force by FICO score at origination: | ||||||||||||||||
Over 760 | $ | 27,305 | $ | 24,252 | $ | 28,014 | $ | 24,965 | ||||||||
740-759 | 10,749 | 9,559 | 11,009 | 9,808 | ||||||||||||
720-739 | 9,368 | 8,484 | 9,553 | 8,656 | ||||||||||||
700-719 | 7,516 | 7,129 | 7,615 | 7,200 | ||||||||||||
680-699 | 5,543 | 5,329 | 5,582 | 5,356 | ||||||||||||
660-679 (2) | 2,850 | 2,728 | 2,901 | 2,739 | ||||||||||||
640-659 | 1,558 | 1,547 | 1,569 | 1,541 | ||||||||||||
620-639 | 653 | 687 | 647 | 672 | ||||||||||||
<620 | 172 | 196 | 166 | 187 | ||||||||||||
Total | $ | 65,714 | $ | 59,911 | $ | 67,056 | $ | 61,124 | ||||||||
(1) | Fair Isaac Company. |
(2) | Loans with unknown FICO scores are included in the 660-679 category. |
June 30, 2023 | December 31, 2022 | June 30, 2022 | September 30, 2023 | December 31, 2022 | September 30, 2022 | |||||||||||||||||||
Primary insurance: | ||||||||||||||||||||||||
Insured loans in-force | 973,280 | 960,306 | 946,891 | 977,832 | 960,306 | 949,052 | ||||||||||||||||||
Delinquent loans | 18,065 | 19,943 | 19,513 | 19,241 | 19,943 | 18,856 | ||||||||||||||||||
Percentage of delinquent loans (delinquency rate) | 1.86 | % | 2.08 | % | 2.06 | % | 1.97 | % | 2.08 | % | 1.99 | % |
June 30, 2023 | September 30, 2023 | |||||||||||||||||||||||||||||||
(Dollar amounts in millions) | Delinquencies | Direct primary case reserves (1) | Risk in-force | Reserves as % of risk in-force | Delinquencies | Direct primary case reserves (1) | Risk in-force | Reserves as % of risk in-force | ||||||||||||||||||||||||
Payments in default: | ||||||||||||||||||||||||||||||||
3 payments or less | 8,162 | $ | 70 | $ | 488 | 14 | % | 9,398 | $ | 80 | $ | 568 | 14 | % | ||||||||||||||||||
4 - 11 payments | 6,229 | 186 | 409 | 46 | % | 6,381 | 192 | 426 | 45 | % | ||||||||||||||||||||||
12 payments or more | 3,674 | 196 | 205 | 95 | % | 3,462 | 188 | 201 | 94 | % | ||||||||||||||||||||||
Total | 18,065 | $ | 452 | $ | 1,102 | 41 | % | 19,241 | $ | 460 | $ | 1,195 | 38 | % | ||||||||||||||||||
December 31, 2022 | December 31, 2022 | |||||||||||||||||||||||||||||||
(Dollar amounts in millions) | Delinquencies | Direct primary case reserves (1) | Risk in-force | Reserves as % of risk in-force | Delinquencies | Direct primary case reserves (1) | Risk in-force | Reserves as % of risk in-force | ||||||||||||||||||||||||
Payments in default: | ||||||||||||||||||||||||||||||||
3 payments or less | 8,920 | $ | 69 | $ | 509 | 14 | % | 8,920 | $ | 69 | $ | 509 | 14 | % | ||||||||||||||||||
4 - 11 payments | 6,466 | 166 | 390 | 43 | % | 6,466 | 166 | 390 | 43 | % | ||||||||||||||||||||||
12 payments or more | 4,557 | 244 | 248 | 98 | % | 4,557 | 244 | 248 | 98 | % | ||||||||||||||||||||||
Total | 19,943 | $ | 479 | $ | 1,147 | 42 | % | 19,943 | $ | 479 | $ | 1,147 | 42 | % | ||||||||||||||||||
(1) | Direct primary case reserves exclude loss adjustment expenses, pool, incurred but not reported (“IBNR”) and reinsurance reserves. |
Percent of primary risk in-force as of June 30, 2023 | Percent of direct primary case reserves as of June 30, 2023 (1) | Delinquency rate as of | ||||||||||||||||||||||||||||||||||||||
June 30, 2023 | December 31, 2022 | June 30, 2022 | Percent of primary risk in-force as ofSeptember 30, 2023 | Percent of direct primary case reserves as of September 30, 2023 (1) | Delinquency rate as of | |||||||||||||||||||||||||||||||||||
September 30, 2023 | December 31, 2022 | September 30, 2022 | ||||||||||||||||||||||||||||||||||||||
By State: | ||||||||||||||||||||||||||||||||||||||||
California | 12 | % | 12 | % | 1.99 | % | 2.09 | % | 2.18 | % | 13 | % | 12 | % | 2.10 | % | 2.09 | % | 2.02 | % | ||||||||||||||||||||
Texas | 8 | % | 7 | % | 1.90 | % | 2.12 | % | 2.12 | % | 8 | % | 7 | % | 2.12 | % | 2.12 | % | 2.10 | % | ||||||||||||||||||||
Florida (2) | 8 | % | 8 | % | 2.04 | % | 2.54 | % | 2.06 | % | 8 | % | 9 | % | 2.16 | % | 2.54 | % | 1.93 | % | ||||||||||||||||||||
New York (2) | 5 | % | 13 | % | 2.73 | % | 2.95 | % | 3.17 | % | 5 | % | 12 | % | 2.89 | % | 2.95 | % | 2.97 | % | ||||||||||||||||||||
Illinois (2) | 4 | % | 6 | % | 2.35 | % | 2.54 | % | 2.53 | % | 4 | % | 6 | % | 2.40 | % | 2.54 | % | 2.53 | % | ||||||||||||||||||||
Arizona | 4 | % | 2 | % | 1.60 | % | 1.78 | % | 1.71 | % | 4 | % | 2 | % | 1.74 | % | 1.78 | % | 1.67 | % | ||||||||||||||||||||
Michigan | 4 | % | 3 | % | 1.63 | % | 1.79 | % | 1.66 | % | 4 | % | 3 | % | 1.72 | % | 1.79 | % | 1.69 | % | ||||||||||||||||||||
Georgia | 3 | % | 4 | % | 2.08 | % | 2.23 | % | 2.21 | % | 3 | % | 3 | % | 2.14 | % | 2.23 | % | 2.26 | % | ||||||||||||||||||||
North Carolina | 3 | % | 2 | % | 1.37 | % | 1.59 | % | 1.67 | % | 3 | % | 2 | % | 1.41 | % | 1.59 | % | 1.62 | % | ||||||||||||||||||||
Washington | 3 | % | 3 | % | 1.63 | % | 1.92 | % | 2.11 | % | 3 | % | 2 | % | 1.64 | % | 1.92 | % | 1.84 | % |
(1) | Direct primary case reserves exclude loss adjustment expenses, pool, IBNR and reinsurance reserves. |
(2) | Jurisdiction predominantly uses a judicial foreclosure process, which generally increases the amount of time it takes for a foreclosure to be completed. |
Percent of primary risk in-force as of June 30, 2023 | Percent of direct primary case reserves as of June 30, 2023 (1) | Delinquency rate as of | ||||||||||||||||||||||||||||||||||||||
June 30, 2023 | December 31, 2022 | June 30, 2022 | Percent of primary risk in-force as ofSeptember 30, 2023 | Percent of direct primary case reserves as of September 30, 2023 (1) | Delinquency rate as of | |||||||||||||||||||||||||||||||||||
September 30, 2023 | December 31, 2022 | September 30, 2022 | ||||||||||||||||||||||||||||||||||||||
By MSA or MD: | ||||||||||||||||||||||||||||||||||||||||
Phoenix, AZ MSA | 3 | % | 2 | % | 1.69 | % | 1.83 | % | 1.71 | % | 3 | % | 2 | % | 1.77 | % | 1.83 | % | 1.71 | % | ||||||||||||||||||||
Chicago-Naperville, IL MD | 3 | % | 4 | % | 2.59 | % | 2.84 | % | 2.94 | % | 3 | % | 4 | % | 2.67 | % | 2.84 | % | 2.85 | % | ||||||||||||||||||||
Atlanta, GA MSA | 3 | % | 3 | % | 2.24 | % | 2.42 | % | 2.42 | % | 3 | % | 3 | % | 2.32 | % | 2.42 | % | 2.47 | % | ||||||||||||||||||||
New York, NY MD | 2 | % | 8 | % | 3.37 | % | 3.75 | % | 4.17 | % | 2 | % | 8 | % | 3.62 | % | 3.75 | % | 3.88 | % | ||||||||||||||||||||
Washington-Arlington, DC MD | 2 | % | 2 | % | 1.70 | % | 1.85 | % | 1.98 | % | 2 | % | 2 | % | 1.75 | % | 1.85 | % | 1.79 | % | ||||||||||||||||||||
Houston, TX MSA | 2 | % | 2 | % | 2.36 | % | 2.60 | % | 2.86 | % | 2 | % | 3 | % | 2.69 | % | 2.60 | % | 2.74 | % | ||||||||||||||||||||
Los Angeles-Long Beach, CA MD | 2 | % | 2 | % | 2.28 | % | 2.18 | % | 2.13 | % | ||||||||||||||||||||||||||||||
Riverside-San Bernardino, CA MSA | 2 | % | 3 | % | 2.56 | % | 2.89 | % | 2.72 | % | 2 | % | 3 | % | 2.71 | % | 2.89 | % | 2.74 | % | ||||||||||||||||||||
Los Angeles-Long Beach, CA MD | 2 | % | 3 | % | 2.29 | % | 2.18 | % | 2.35 | % | ||||||||||||||||||||||||||||||
Dallas, TX MD | 2 | % | 2 | % | 1.55 | % | 1.86 | % | 1.70 | % | 2 | % | 2 | % | 1.69 | % | 1.86 | % | 1.78 | % | ||||||||||||||||||||
Denver-Aurora-Lakewood, CO MSA | 2 | % | 1 | % | 0.85 | % | 1.12 | % | 1.18 | % | 2 | % | 1 | % | 1.07 | % | 1.12 | % | 1.11 | % |
(1) | Direct primary case reserves exclude loss adjustment expenses, pool, IBNR and reinsurance reserves. |
(Amounts in millions) | Percent of direct primary case reserves (1) | Primary insurance in-force | Percent of total | Primary risk in-force | Percent of total | Delinquency rate | Percent of direct primary case reserves (1) | Primary insurance in-force | Percent of total | Primary risk in-force | Percent of total | Delinquency rate | ||||||||||||||||||||||||||||||||||||
Policy Year | Policy Year | |||||||||||||||||||||||||||||||||||||||||||||||
2008 and prior | 22 | % | $ | 6,135 | 2 | % | $ | 1,581 | 2 | % | 8.40 | % | 20 | % | $ | 5,859 | 2 | % | $ | 1,510 | 2 | % | 8.67 | % | ||||||||||||||||||||||||
2009 to 2015 | 6 | 4,296 | 2 | 1,138 | 2 | 3.90 | % | 5 | 3,819 | 1 | 1,004 | 2 | 4.20 | % | ||||||||||||||||||||||||||||||||||
2016 | 5 | 5,289 | 2 | 1,418 | 2 | 2.97 | % | 4 | 4,948 | 2 | 1,327 | 2 | 3.07 | % | ||||||||||||||||||||||||||||||||||
2017 | 6 | 5,878 | 2 | 1,549 | 2 | 3.40 | % | 6 | 5,582 | 2 | 1,471 | 2 | 3.62 | % | ||||||||||||||||||||||||||||||||||
2018 | 7 | 6,270 | 2 | 1,601 | 3 | 4.00 | % | 6 | 5,993 | 2 | 1,535 | 2 | 4.18 | % | ||||||||||||||||||||||||||||||||||
2019 | 10 | 15,026 | 6 | 3,831 | 6 | 2.47 | % | 9 | 14,372 | 6 | 3,676 | 5 | 2.58 | % | ||||||||||||||||||||||||||||||||||
2020 | 15 | 49,522 | 19 | 12,827 | 20 | 1.39 | % | 15 | 46,881 | 18 | 12,228 | 18 | 1.53 | % | ||||||||||||||||||||||||||||||||||
2021 | 19 | 76,381 | 30 | 19,245 | 29 | 1.27 | % | 21 | 73,141 | 28 | 18,524 | 28 | 1.48 | % | ||||||||||||||||||||||||||||||||||
2022 | 10 | 61,390 | 24 | 15,392 | 23 | 0.97 | % | 13 | 60,258 | 23 | 15,129 | 23 | 1.28 | % | ||||||||||||||||||||||||||||||||||
2023 | — | 27,629 | 11 | 7,132 | 11 | 0.12 | % | 1 | 41,161 | 16 | 10,652 | 16 | 0.25 | % | ||||||||||||||||||||||||||||||||||
Total portfolio | 100 | % | $ | 257,816 | 100 | % | $ | 65,714 | 100 | % | 1.86 | % | 100 | % | $ | 262,014 | 100 | % | $ | 67,056 | 100 | % | 1.97 | % | ||||||||||||||||||||||||
(1) | Direct primary case reserves exclude loss adjustment expenses, pool, IBNR and reinsurance reserves. |
Three months ended June 30, | Increase (decrease) and percentage change | Three months ended September 30, | Increase (decrease) and percentage change | |||||||||||||||||||||||||||||
(Amounts in millions) | 2023 | 2022 | 2023 vs. 2022 | 2023 | 2022 | 2023 vs. 2022 | ||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||
Premiums | $ | 611 | $ | 617 | $ | (6 | ) | (1 | )% | $ | 621 | $ | 637 | $ | (16 | ) | (3 | )% | ||||||||||||||
Net investment income | 470 | 486 | (16 | ) | (3 | )% | 482 | 497 | (15 | ) | (3 | )% | ||||||||||||||||||||
Net investment gains (losses) | 62 | 5 | 57 | NM | (1) | (21 | ) | (47 | ) | 26 | 55 | % | ||||||||||||||||||||
Total revenues | 1,143 | 1,108 | 35 | 3 | % | 1,082 | 1,087 | (5 | ) | — | % | |||||||||||||||||||||
Benefits and expenses: | ||||||||||||||||||||||||||||||||
Benefits and other changes in policy reserves | 941 | 942 | (1 | ) | — | % | 953 | 956 | (3 | ) | — | % | ||||||||||||||||||||
Liability remeasurement (gains) losses | 61 | 23 | 38 | 165 | % | 104 | 3 | 101 | NM | (1) | ||||||||||||||||||||||
Acquisition and operating expenses, net of deferrals | 108 | 95 | 13 | 14 | % | 109 | 122 | (13 | ) | (11 | )% | |||||||||||||||||||||
Amortization of deferred acquisition costs and intangibles | 18 | 18 | — | — | % | 17 | 19 | (2 | ) | (11 | )% | |||||||||||||||||||||
Total benefits and expenses | 1,128 | 1,078 | 50 | 5 | % | 1,183 | 1,100 | 83 | 8 | % | ||||||||||||||||||||||
Income from continuing operations before income taxes | 15 | 30 | (15 | ) | (50 | )% | ||||||||||||||||||||||||||
Provision for income taxes | 10 | 9 | 1 | 11 | % | |||||||||||||||||||||||||||
Loss from continuing operations before income taxes | (101 | ) | (13 | ) | (88 | ) | NM | (1) | ||||||||||||||||||||||||
Benefit for income taxes | (13 | ) | (1 | ) | (12 | ) | NM | (1) | ||||||||||||||||||||||||
Income from continuing operations | 5 | 21 | (16 | ) | (76 | )% | ||||||||||||||||||||||||||
Adjustments to income from continuing operations: | ||||||||||||||||||||||||||||||||
Loss from continuing operations | (88 | ) | (12 | ) | (76 | ) | NM | (1) | ||||||||||||||||||||||||
Adjustments to loss from continuing operations: | ||||||||||||||||||||||||||||||||
Net investment (gains) losses | (62 | ) | (5 | ) | (57 | ) | NM | (1) | 21 | 47 | (26 | ) | (55 | )% | ||||||||||||||||||
Expenses related to restructuring | 1 | 1 | — | — | % | |||||||||||||||||||||||||||
Taxes on adjustments | 13 | — | 13 | NM | (1) | (4 | ) | (9 | ) | 5 | 56 | % | ||||||||||||||||||||
Adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders | $ | (43 | ) | $ | 17 | $ | (60 | ) | NM | (1) | $ | (71 | ) | $ | 26 | $ | (97 | ) | NM | (1) | ||||||||||||
(1) | We define “NM” as not meaningful for increases or decreases greater than 200%. |
Six months ended June 30, | Increase (decrease) and percentage change | Nine months ended September 30, | Increase (decrease) and percentage change | |||||||||||||||||||||||||||||
(Amounts in millions) | 2023 | 2022 | 2023 vs. 2022 | 2023 | 2022 | 2023 vs. 2022 | ||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||
Premiums | $ | 1,227 | $ | 1,224 | $ | 3 | — | % | $ | 1,848 | $ | 1,861 | $ | (13 | ) | (1 | )% | |||||||||||||||
Net investment income | 943 | 933 | 10 | 1 | % | 1,425 | 1,430 | (5 | ) | — | % | |||||||||||||||||||||
Net investment gains (losses) | 71 | 46 | 25 | 54 | % | 50 | (1 | ) | 51 | NM | (1) | |||||||||||||||||||||
Total revenues | 2,241 | 2,203 | 38 | 2 | % | 3,323 | 3,290 | 33 | 1 | % | ||||||||||||||||||||||
Benefits and expenses: | ||||||||||||||||||||||||||||||||
Benefits and other changes in policy reserves | 1,885 | 1,867 | 18 | 1 | % | 2,838 | 2,823 | 15 | 1 | % | ||||||||||||||||||||||
Liability remeasurement (gains) losses | 29 | (65 | ) | 94 | 145 | % | 133 | (62 | ) | 195 | NM | (1) | ||||||||||||||||||||
Acquisition and operating expenses, net of deferrals | 227 | 191 | 36 | 19 | % | 336 | 313 | 23 | 7 | % | ||||||||||||||||||||||
Amortization of deferred acquisition costs and intangibles | 36 | 37 | (1 | ) | (3 | )% | 53 | 56 | (3 | ) | (5 | )% | ||||||||||||||||||||
Total benefits and expenses | 2,177 | 2,030 | 147 | 7 | % | 3,360 | 3,130 | 230 | 7 | % | ||||||||||||||||||||||
Income from continuing operations before income taxes | 64 | 173 | (109 | ) | (63 | )% | ||||||||||||||||||||||||||
Income (loss) from continuing operations before income taxes | (37 | ) | 160 | (197 | ) | (123 | )% | |||||||||||||||||||||||||
Provision for income taxes | 28 | 47 | (19 | ) | (40 | )% | 15 | 46 | (31 | ) | (67 | )% | ||||||||||||||||||||
Income from continuing operations | 36 | 126 | (90 | ) | (71 | )% | ||||||||||||||||||||||||||
Adjustments to income from continuing operations: | ||||||||||||||||||||||||||||||||
Income (loss) from continuing operations | (52 | ) | 114 | (166 | ) | (146 | )% | |||||||||||||||||||||||||
Adjustments to income (loss) from continuing operations: | ||||||||||||||||||||||||||||||||
Net investment (gains) losses | (71 | ) | (46 | ) | (25 | ) | (54 | )% | (50 | ) | 1 | (51 | ) | NM | (1) | |||||||||||||||||
Expenses related to restructuring | — | 1 | (1 | ) | (100 | )% | — | 1 | (1 | ) | (100 | )% | ||||||||||||||||||||
Taxes on adjustments | 15 | 9 | 6 | 67 | % | 11 | — | 11 | NM | (1) | ||||||||||||||||||||||
Adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders | $ | (20 | ) | $ | 90 | $ | (110 | ) | (122 | )% | $ | (91 | ) | $ | 116 | $ | (207 | ) | (178 | )% | ||||||||||||
(1) | We define “NM” as not meaningful for increases or decreases greater than 200%. |
Three months ended September 30, | (Increase) decrease and percentage change | Nine months ended September 30, | (Increase) decrease and percentage change | |||||||||||||||||||||||||||||
(Amounts in millions) | 2023 | 2022 | 2023 vs. 2022 | 2023 | 2022 | 2023 vs. 2022 | ||||||||||||||||||||||||||
Cash flow assumption updates | $ | (6 | ) | $ | (10 | ) | $ | 4 | 40 | % | $ | (9 | ) | $ | (32 | ) | $ | 23 | 72 | % | ||||||||||||
Actual to expected experience | 110 | 13 | 97 | NM | (1) | 142 | (30 | ) | 172 | NM | (1) | |||||||||||||||||||||
Total liability remeasurement (gains) losses | $ | 104 | $ | 3 | $ | 101 | NM | (1) | $ | 133 | $ | (62 | ) | $ | 195 | NM | (1) | |||||||||||||||
Three months ended June 30, | (Increase) decrease and percentage change | Six months ended June 30, | (Increase) decrease and percentage change | |||||||||||||||||||||||||||||
(Amounts in millions) | 2023 | 2022 | 2023 vs. 2022 | 2023 | 2022 | 2023 vs. 2022 | ||||||||||||||||||||||||||
Cash flow assumption updates | $ | (24 | ) | $ | (20 | ) | $ | (4 | ) | (20 | )% | $ | (3 | ) | $ | (22 | ) | $ | 19 | 86 | % | |||||||||||
Actual to expected experience | 85 | 43 | 42 | 98 | % | 32 | (43 | ) | 75 | 174 | % | |||||||||||||||||||||
Total liability remeasurement (gains) losses | $ | 61 | $ | 23 | $ | 38 | 165 | % | $ | 29 | $ | (65 | ) | $ | 94 | 145 | % | |||||||||||||||
(1) | We define “NM” as not meaningful for increases or decreases greater than 200%. |
Three months ended June 30, | Six months ended June 30, | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||
(Dollar amounts in millions) | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||
State filings approved | 38 | 33 | 61 | 71 | 27 | 24 | 88 | 95 | ||||||||||||||||||||||||
Impacted in-force premiums | $ | 300 | $ | 133 | $ | 378 | $ | 487 | $ | 150 | $ | 123 | $ | 528 | $ | 610 | ||||||||||||||||
Weighted-average percentage rate increase approved | 31 | % | 39 | % | 38 | % | 31 | % | 56 | % | 38 | % | 43 | % | 33 | % | ||||||||||||||||
Gross incremental premiums approved | $ | 94 | $ | 52 | $ | 144 | $ | 153 | $ | 83 | $ | 47 | $ | 227 | $ | 200 |
Three months ended June 30, | Increase (decrease) and percentage change | Three months ended September 30, | Increase (decrease) and percentage change | |||||||||||||||||||||||||||||
(Amounts in millions) | 2023 | 2022 | 2023 vs. 2022 | 2023 | 2022 | 2023 vs. 2022 | ||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||
Premiums | $ | 50 | $ | 60 | $ | (10 | ) | (17 | )% | $ | 48 | $ | 55 | $ | (7 | ) | (13 | )% | ||||||||||||||
Net investment income | 261 | 265 | (4 | ) | (2 | )% | 261 | 271 | (10 | ) | (4 | )% | ||||||||||||||||||||
Net investment gains (losses) | (7 | ) | — | (7 | ) | NM | (1) | (18 | ) | (15 | ) | (3 | ) | (20 | )% | |||||||||||||||||
Policy fees and other income | 165 | 164 | 1 | 1 | % | 158 | 169 | (11 | ) | (7 | )% | |||||||||||||||||||||
Total revenues | 469 | 489 | (20 | ) | (4 | )% | 449 | 480 | (31 | ) | (6 | )% | ||||||||||||||||||||
Benefits and expenses: | ||||||||||||||||||||||||||||||||
Benefits and other changes in policy reserves | 240 | (108 | ) | 348 | NM | (1) | 229 | 247 | (18 | ) | (7 | )% | ||||||||||||||||||||
Liability remeasurement (gains) losses | 9 | 1 | 8 | NM | (1) | 12 | 14 | (2 | ) | (14 | )% | |||||||||||||||||||||
Changes in fair value of market risk benefits and associated hedges | (19 | ) | 20 | (39 | ) | (195 | )% | (24 | ) | (27 | ) | 3 | 11 | % | ||||||||||||||||||
Interest credited | 126 | 126 | — | — | % | 127 | 128 | (1 | ) | (1 | )% | |||||||||||||||||||||
Acquisition and operating expenses, net of deferrals | 51 | 416 | (365 | ) | (88 | )% | 54 | 57 | (3 | ) | (5 | )% | ||||||||||||||||||||
Amortization of deferred acquisition costs and intangibles | 44 | 63 | (19 | ) | (30 | )% | 45 | 57 | (12 | ) | (21 | )% | ||||||||||||||||||||
Total benefits and expenses | 451 | 518 | (67 | ) | (13 | )% | 443 | 476 | (33 | ) | (7 | )% | ||||||||||||||||||||
Income (loss) from continuing operations before income taxes | 18 | (29 | ) | 47 | 162 | % | ||||||||||||||||||||||||||
Provision (benefit) for income taxes | 3 | (7 | ) | 10 | 143 | % | ||||||||||||||||||||||||||
Income from continuing operations before income taxes | 6 | 4 | 2 | 50 | % | |||||||||||||||||||||||||||
Provision for income taxes | 1 | — | 1 | NM | (1) | |||||||||||||||||||||||||||
Income (loss) from continuing operations | 15 | (22 | ) | 37 | 168 | % | ||||||||||||||||||||||||||
Adjustments to income (loss) from continuing operations: | ||||||||||||||||||||||||||||||||
Income from continuing operations | 5 | 4 | 1 | 25 | % | |||||||||||||||||||||||||||
Adjustments to income from continuing operations: | ||||||||||||||||||||||||||||||||
Net investment (gains) losses | 7 | — | 7 | NM | (1) | 18 | 15 | 3 | 20 | % | ||||||||||||||||||||||
Changes in fair value of market risk benefits attributable to interest rates, equity markets and associated hedges (2) | (23 | ) | 8 | (31 | ) | NM | (1) | (26 | ) | (32 | ) | 6 | 19 | % | ||||||||||||||||||
Pension plan termination costs | — | 6 | (6 | ) | (100 | )% | ||||||||||||||||||||||||||
Taxes on adjustments | 3 | (1 | ) | 4 | NM | (1) | — | 1 | (1 | ) | (100 | )% | ||||||||||||||||||||
Adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders | $ | 2 | $ | (15 | ) | $ | 17 | 113 | % | |||||||||||||||||||||||
Adjusted operating loss available to Genworth Financial, Inc.’s common stockholders | $ | (3 | ) | $ | (6 | ) | $ | 3 | 50 | % | ||||||||||||||||||||||
(1) | We define “NM” as not meaningful for increases or decreases greater than 200%. |
(2) | For the three months ended |
Three months ended June 30, | Increase (decrease) and percentage change | |||||||||||||||
(Amounts in millions) | 2023 | 2022 | 2023 vs. 2022 | |||||||||||||
Adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders: | ||||||||||||||||
Life insurance | $ | (17 | ) | $ | (37 | ) | $ | 20 | 54 | % | ||||||
Fixed annuities | 10 | 20 | (10 | ) | (50 | )% | ||||||||||
Variable annuities | 9 | 2 | 7 | NM | (1) | |||||||||||
Total adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders | $ | 2 | $ | (15 | ) | $ | 17 | 113 | % | |||||||
Three months ended September 30, | Increase (decrease) and percentage change | |||||||||||||||
(Amounts in millions) | 2023 | 2022 | 2023 vs. 2022 | |||||||||||||
Adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders: | ||||||||||||||||
Life insurance | $ | (25 | ) | $ | (28 | ) | $ | 3 | 11 | % | ||||||
Fixed annuities | 17 | 15 | 2 | 13 | % | |||||||||||
Variable annuities | 5 | 7 | (2 | ) | (29 | )% | ||||||||||
Total adjusted operating loss available to Genworth Financial, Inc.’s common stockholders | $ | (3 | ) | $ | (6 | ) | $ | 3 | 50 | % | ||||||
Six months ended June 30, | Increase (decrease) and percentage change | Nine months ended September 30, | Increase (decrease) and percentage change | |||||||||||||||||||||||||||||
(Amounts in millions) | 2023 | 2022 | 2023 vs. 2022 | 2023 | 2022 | 2023 vs. 2022 | ||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||
Premiums | $ | 112 | $ | 134 | $ | (22 | ) | (16 | )% | $ | 160 | $ | 189 | $ | (29 | ) | (15 | )% | ||||||||||||||
Net investment income | 525 | 544 | (19 | ) | (3 | )% | 786 | 815 | (29 | ) | (4 | )% | ||||||||||||||||||||
Net investment gains (losses) | (17 | ) | 14 | (31 | ) | NM | (1) | (35 | ) | (1 | ) | (34 | ) | NM | (1) | |||||||||||||||||
Policy fees and other income | 328 | 333 | (5 | ) | (2 | )% | 486 | 502 | (16 | ) | (3 | )% | ||||||||||||||||||||
Total revenues | 948 | 1,025 | (77 | ) | (8 | )% | 1,397 | 1,505 | (108 | ) | (7 | )% | ||||||||||||||||||||
Benefits and expenses: | ||||||||||||||||||||||||||||||||
Benefits and other changes in policy reserves | 486 | 147 | 339 | NM | (1) | 715 | 394 | 321 | 81 | % | ||||||||||||||||||||||
Liability remeasurement (gains) losses | 26 | 25 | 1 | 4 | % | 38 | 39 | (1 | ) | (3 | )% | |||||||||||||||||||||
Changes in fair value of market risk benefits and associated hedges | (2 | ) | (21 | ) | 19 | 90 | % | (26 | ) | (48 | ) | 22 | 46 | % | ||||||||||||||||||
Interest credited | 252 | 251 | 1 | — | % | 379 | 379 | — | — | % | ||||||||||||||||||||||
Acquisition and operating expenses, net of deferrals | 104 | 493 | (389 | ) | (79 | )% | 158 | 550 | (392 | ) | (71 | )% | ||||||||||||||||||||
Amortization of deferred acquisition costs and intangibles | 95 | 129 | (34 | ) | (26 | )% | 140 | 186 | (46 | ) | (25 | )% | ||||||||||||||||||||
Total benefits and expenses | 961 | 1,024 | (63 | ) | (6 | )% | 1,404 | 1,500 | (96 | ) | (6 | )% | ||||||||||||||||||||
Income (loss) from continuing operations before income taxes | (13 | ) | 1 | (14 | ) | NM | (1) | (7 | ) | 5 | (12 | ) | NM | (1) | ||||||||||||||||||
Benefit for income taxes | (4 | ) | (1 | ) | (3 | ) | NM | (1) | (3 | ) | (1 | ) | (2 | ) | (200 | )% | ||||||||||||||||
Income (loss) from continuing operations | (9 | ) | 2 | (11 | ) | NM | (1) | (4 | ) | 6 | (10 | ) | (167 | )% | ||||||||||||||||||
Adjustments to income (loss) from continuing operations: | ||||||||||||||||||||||||||||||||
Net investment (gains) losses | 17 | (14 | ) | 31 | NM | (1) | 35 | 1 | 34 | NM | (1) | |||||||||||||||||||||
Changes in fair value of market risk benefits attributable to interest rates, equity markets and associated hedges (2) | (9 | ) | (46 | ) | 37 | 80 | % | (35 | ) | (78 | ) | 43 | 55 | % | ||||||||||||||||||
Pension plan termination costs | — | 6 | (6 | ) | (100 | )% | ||||||||||||||||||||||||||
Taxes on adjustments | (1 | ) | 13 | (14 | ) | (108 | )% | (1 | ) | 14 | (15 | ) | (107 | )% | ||||||||||||||||||
Adjusted operating loss available to Genworth Financial, Inc.’s common stockholders | $ | (2 | ) | $ | (45 | ) | $ | 43 | 96 | % | $ | (5 | ) | $ | (51 | ) | $ | 46 | 90 | % | ||||||||||||
(1) | We define “NM” as not meaningful for increases or decreases greater than 200%. |
(2) | For the |
Six months ended June 30, | Increase (decrease) and percentage change | Nine months ended September 30, | Increase (decrease) and percentage change | |||||||||||||||||||||||||||||
(Amounts in millions) | 2023 | 2022 | 2023 vs. 2022 | 2023 | 2022 | 2023 vs. 2022 | ||||||||||||||||||||||||||
Adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders: | ||||||||||||||||||||||||||||||||
Life insurance | $ | (44 | ) | $ | (84 | ) | $ | 40 | 48 | % | $ | (69 | ) | $ | (112 | ) | $ | 43 | 38 | % | ||||||||||||
Fixed annuities | 24 | 33 | (9 | ) | (27 | )% | 41 | 48 | (7 | ) | (15 | )% | ||||||||||||||||||||
Variable annuities | 18 | 6 | 12 | 200 | % | 23 | 13 | 10 | 77 | % | ||||||||||||||||||||||
Total adjusted operating loss available to Genworth Financial, Inc.’s common stockholders | $ | (2 | ) | $ | (45 | ) | $ | 43 | 96 | % | $ | (5 | ) | $ | (51 | ) | $ | 46 | 90 | % | ||||||||||||
As of June 30, | Increase (decrease) and percentage change | |||||||||||||||
(Amounts in millions) | 2023 | 2022 | 2023 vs. 2022 | |||||||||||||
Term and whole life insurance | ||||||||||||||||
Life insurance in-force, net of reinsurance | $ | 45,460 | $ | 50,267 | $ | (4,807 | ) | (10 | )% | |||||||
Life insurance in-force before reinsurance | $ | 284,224 | $ | 316,649 | $ | (32,425 | ) | (10 | )% | |||||||
Term universal life insurance | ||||||||||||||||
Life insurance in-force, net of reinsurance | $ | 91,293 | $ | 95,941 | $ | (4,648 | ) | (5 | )% | |||||||
Life insurance in-force before reinsurance | $ | 91,904 | $ | 96,570 | $ | (4,666 | ) | (5 | )% | |||||||
Universal life insurance | ||||||||||||||||
Life insurance in-force, net of reinsurance | $ | 29,171 | $ | 30,434 | $ | (1,263 | ) | (4 | )% | |||||||
Life insurance in-force before reinsurance | $ | 32,900 | $ | 34,405 | $ | (1,505 | ) | (4 | )% |
September 30, | Increase (decrease) and percentage change | |||||||||||||||
(Amounts in millions) | 2023 | 2022 | 2023 vs. 2022 | |||||||||||||
Term and whole life insurance | ||||||||||||||||
Life insurance in-force, net of reinsurance | $ | 45,353 | $ | 50,916 | $ | (5,563 | ) | (11 | )% | |||||||
Life insurance in-force, before reinsurance | $ | 277,479 | $ | 308,153 | $ | (30,674 | ) | (10 | )% | |||||||
Term universal life insurance | ||||||||||||||||
Life insurance in-force, net of reinsurance | $ | 90,820 | $ | 94,151 | $ | (3,331 | ) | (4 | )% | |||||||
Life insurance in-force, before reinsurance | $ | 91,421 | $ | 94,773 | $ | (3,352 | ) | (4 | )% | |||||||
Universal life insurance | ||||||||||||||||
Life insurance in-force, net of reinsurance | $ | 29,299 | $ | 30,094 | $ | (795 | ) | (3 | )% | |||||||
Life insurance in-force, before reinsurance | $ | 32,572 | $ | 33,995 | $ | (1,423 | ) | (4 | )% |
Three months ended June 30, | Increase (decrease) and percentage change | Three months ended September 30, | Increase (decrease) and percentage change | |||||||||||||||||||||||||||||
(Amounts in millions) | 2023 | 2022 | 2023 vs. 2022 | 2023 | 2022 | 2023 vs. 2022 | ||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||
Premiums | $ | 2 | $ | 1 | $ | 1 | 100 | % | $ | 3 | $ | 2 | $ | 1 | 50 | % | ||||||||||||||||
Net investment income | 4 | — | 4 | NM | (1) | 3 | 1 | 2 | 200 | % | ||||||||||||||||||||||
Net investment gains (losses) | (3 | ) | 15 | (18 | ) | (120 | )% | (4 | ) | 4 | (8 | ) | (200 | )% | ||||||||||||||||||
Policy fees and other income | — | 1 | (1 | ) | (100 | )% | (1 | ) | (1 | ) | — | — | % | |||||||||||||||||||
Total revenues | 3 | 17 | (14 | ) | (82 | )% | 1 | 6 | (5 | ) | (83 | )% | ||||||||||||||||||||
Benefits and expenses: | ||||||||||||||||||||||||||||||||
Benefits and other changes in policy reserves | (2 | ) | (4 | ) | 2 | 50 | % | (1 | ) | (4 | ) | 3 | 75 | % | ||||||||||||||||||
Acquisition and operating expenses, net of deferrals | 15 | 10 | 5 | 50 | % | 13 | 11 | 2 | 18 | % | ||||||||||||||||||||||
Interest expense | 16 | 13 | 3 | 23 | % | 17 | 14 | 3 | 21 | % | ||||||||||||||||||||||
Total benefits and expenses | 29 | 19 | 10 | 53 | % | 29 | 21 | 8 | 38 | % | ||||||||||||||||||||||
Loss from continuing operations before income taxes | (26 | ) | (2 | ) | (24 | ) | NM | (1) | (28 | ) | (15 | ) | (13 | ) | (87 | )% | ||||||||||||||||
Provision (benefit) for income taxes | (4 | ) | 3 | (7 | ) | NM | (1) | (6 | ) | 2 | (8 | ) | NM | (1) | ||||||||||||||||||
Loss from continuing operations | (22 | ) | (5 | ) | (17 | ) | NM | (1) | (22 | ) | (17 | ) | (5 | ) | (29 | )% | ||||||||||||||||
Adjustments to loss from continuing operations: | ||||||||||||||||||||||||||||||||
Net investment (gains) losses | 3 | (15 | ) | 18 | 120 | % | 4 | (4 | ) | 8 | 200 | % | ||||||||||||||||||||
(Gains) losses on early extinguishment of debt | — | 1 | (1 | ) | (100 | )% | — | 3 | (3 | ) | (100 | )% | ||||||||||||||||||||
Taxes on adjustments | (1 | ) | 3 | (4 | ) | (133 | )% | |||||||||||||||||||||||||
Adjusted operating loss available to Genworth Financial, Inc.’s common stockholders | $ | (20 | ) | $ | (16 | ) | $ | (4 | ) | (25 | )% | $ | (18 | ) | $ | (18 | ) | $ | — | — | % | |||||||||||
(1) | We define “NM” as not meaningful for increases or decreases greater than 200%. |
Nine months ended September 30, | Increase (decrease) and percentage change | |||||||||||||||
(Amounts in millions) | 2023 | 2022 | 2023 vs. 2022 | |||||||||||||
Revenues: | ||||||||||||||||
Premiums | $ | 7 | $ | 5 | $ | 2 | 40 | % | ||||||||
Net investment income | 11 | 4 | 7 | 175 | % | |||||||||||
Net investment gains (losses) | (17 | ) | 6 | (23 | ) | NM | (1) | |||||||||
Policy fees and other income | (1 | ) | — | (1 | ) | NM | (1) | |||||||||
Total revenues | — | 15 | (15 | ) | (100 | )% | ||||||||||
Benefits and expenses: | ||||||||||||||||
Benefits and other changes in policy reserves | (6 | ) | (11 | ) | 5 | 45 | % | |||||||||
Acquisition and operating expenses, net of deferrals | 44 | 30 | 14 | 47 | % | |||||||||||
Interest expense | 49 | 40 | 9 | 23 | % | |||||||||||
Total benefits and expenses | 87 | 59 | 28 | 47 | % | |||||||||||
Loss from continuing operations before income taxes | (87 | ) | (44 | ) | (43 | ) | (98 | )% | ||||||||
Benefit for income taxes | (15 | ) | — | (15 | ) | NM | (1) | |||||||||
Loss from continuing operations | (72 | ) | (44 | ) | (28 | ) | (64 | )% | ||||||||
Adjustments to loss from continuing operations: | ||||||||||||||||
Net investment (gains) losses | 17 | (6 | ) | 23 | NM | (1) | ||||||||||
(Gains) losses on early extinguishment of debt | (1 | ) | 7 | (8 | ) | (114 | )% | |||||||||
Expenses related to restructuring | 4 | — | 4 | NM | (1) | |||||||||||
Taxes on adjustments | (4 | ) | — | (4 | ) | NM | (1) | |||||||||
Adjusted operating loss available to Genworth Financial, Inc.’s common stockholders | $ | (56 | ) | $ | (43 | ) | $ | (13 | ) | (30 | )% | |||||
(1) | We define “NM” as not meaningful for increases or decreases greater than 200%. |
Six months ended June 30, | Increase (decrease) and percentage change | |||||||||||||||
(Amounts in millions) | 2023 | 2022 | 2023 vs. 2022 | |||||||||||||
Revenues: | ||||||||||||||||
Premiums | $ | 4 | $ | 3 | $ | 1 | 33 | % | ||||||||
Net investment income | 8 | 3 | 5 | 167 | % | |||||||||||
Net investment gains (losses) | (13 | ) | 2 | (15 | ) | NM | (1) | |||||||||
Policy fees and other income | — | 1 | (1 | ) | (100 | )% | ||||||||||
Total revenues | (1 | ) | 9 | (10 | ) | (111 | )% | |||||||||
Benefits and expenses: | ||||||||||||||||
Benefits and other changes in policy reserves | (5 | ) | (7 | ) | 2 | 29 | % | |||||||||
Acquisition and operating expenses, net of deferrals | 31 | 19 | 12 | 63 | % | |||||||||||
Interest expense | 32 | 26 | 6 | 23 | % | |||||||||||
Total benefits and expenses | 58 | 38 | 20 | 53 | % | |||||||||||
Loss from continuing operations before income taxes | (59 | ) | (29 | ) | (30 | ) | (103 | )% | ||||||||
Benefit for income taxes | (9 | ) | (2 | ) | (7 | ) | NM | (1) | ||||||||
Loss from continuing operations | (50 | ) | (27 | ) | (23 | ) | (85 | )% | ||||||||
Adjustments to loss from continuing operations: | ||||||||||||||||
Net investment (gains) losses | 13 | (2 | ) | 15 | NM | (1) | ||||||||||
(Gains) losses on early extinguishment of debt | (1 | ) | 4 | (5 | ) | (125 | )% | |||||||||
Expenses related to restructuring | 4 | — | 4 | NM | (1) | |||||||||||
Taxes on adjustments | (4 | ) | — | (4 | ) | NM | (1) | |||||||||
Adjusted operating loss available to Genworth Financial, Inc.’s common stockholders | $ | (38 | ) | $ | (25 | ) | $ | (13 | ) | (52 | )% | |||||
Three months ended June 30, | Increase (decrease) | |||||||||||||||||||||||
2023 | 2022 | 2023 vs. 2022 | ||||||||||||||||||||||
(Amounts in millions) | Yield | Amount | Yield | Amount | Yield | Amount | ||||||||||||||||||
Fixed maturity securities—taxable | 4.5 | % | $ | 567 | 4.5 | % | $ | 578 | — | % | $ | (11 | ) | |||||||||||
Fixed maturity securities—non-taxable | 4.9 | % | 1 | 3.6 | % | 1 | 1.3 | % | — | |||||||||||||||
Equity securities | 3.2 | % | 3 | 3.4 | % | 2 | (0.2 | )% | 1 | |||||||||||||||
Commercial mortgage loans | 4.4 | % | 75 | 4.5 | % | 78 | (0.1 | )% | (3 | ) | ||||||||||||||
Policy loans | 9.8 | % | 54 | 9.7 | % | 51 | 0.1 | % | 3 | |||||||||||||||
Limited partnerships (1) | 2.7 | % | 17 | 6.2 | % | 32 | (3.5 | )% | (15 | ) | ||||||||||||||
Other invested assets (2) | 50.7 | % | 70 | 62.6 | % | 66 | (11.9 | )% | 4 | |||||||||||||||
Cash, cash equivalents, restricted cash and short-term investments | 4.5 | % | 22 | 0.3 | % | 1 | 4.2 | % | 21 | |||||||||||||||
Gross investment income before expenses and fees | 5.0 | % | 809 | 4.9 | % | 809 | 0.1 | % | — | |||||||||||||||
Expenses and fees | (0.1 | )% | (24 | ) | (0.1 | )% | (22 | ) | — | % | (2 | ) | ||||||||||||
Net investment income | 4.9 | % | $ | 785 | 4.8 | % | $ | 787 | 0.1 | % | $ | (2 | ) | |||||||||||
Average invested assets and cash | $ | 64,646 | $ | 65,150 | $ | (504 | ) | |||||||||||||||||
Six months ended June 30, | Increase (decrease) | Three months ended September 30, | Increase (decrease) | |||||||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | 2023 vs. 2022 | 2023 | 2022 | 2023 vs. 2022 | |||||||||||||||||||||||||||||||||||||||||||
(Amounts in millions) | Yield | Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | Amount | ||||||||||||||||||||||||||||||||||||
Fixed maturity securities—taxable | 4.5 | % | $ | 1,128 | 4.5 | % | $ | 1,158 | — | % | $ | (30 | ) | 4.5 | % | $ | 559 | 4.5 | % | $ | 576 | — | % | $ | (17 | ) | ||||||||||||||||||||||
Fixed maturity securities—non-taxable | 4.8 | % | 2 | 3.6 | % | 2 | 1.2 | % | — | 5.6 | % | 1 | 7.1 | % | 2 | (1.5 | )% | (1 | ) | |||||||||||||||||||||||||||||
Equity securities | 2.8 | % | 5 | 3.6 | % | 4 | (0.8 | )% | 1 | 1.1 | % | 1 | 4.6 | % | 3 | (3.5 | )% | (2 | ) | |||||||||||||||||||||||||||||
Commercial mortgage loans | 4.4 | % | 151 | 4.6 | % | 159 | (0.2 | )% | (8 | ) | 4.5 | % | 76 | 4.6 | % | 81 | (0.1 | )% | (5 | ) | ||||||||||||||||||||||||||||
Policy loans | 10.0 | % | 109 | 9.7 | % | 101 | 0.3 | % | 8 | 10.3 | % | 58 | 10.2 | % | 55 | 0.1 | % | 3 | ||||||||||||||||||||||||||||||
Limited partnerships (1) | 3.7 | % | 45 | 3.9 | % | 39 | (0.2 | )% | 6 | 4.7 | % | 31 | 7.0 | % | 38 | (2.3 | )% | (7 | ) | |||||||||||||||||||||||||||||
Other invested assets (2) | 51.2 | % | 138 | 63.2 | % | 129 | (12.0 | )% | 9 | 48.3 | % | 69 | 57.0 | % | 67 | (8.7 | )% | 2 | ||||||||||||||||||||||||||||||
Cash, cash equivalents, restricted cash and short-term | ||||||||||||||||||||||||||||||||||||||||||||||||
investments | 4.2 | % | 40 | 0.1 | % | 1 | 4.1 | % | 39 | |||||||||||||||||||||||||||||||||||||||
Cash, cash equivalents, restricted cash and short-term investments | 5.3 | % | 28 | 1.7 | % | 7 | 3.6 | % | 21 | |||||||||||||||||||||||||||||||||||||||
Gross investment income before expenses and fees | 5.0 | % | 1,618 | 4.9 | % | 1,593 | 0.1 | % | 25 | 5.1 | % | 823 | 5.1 | % | 829 | — | % | (6 | ) | |||||||||||||||||||||||||||||
Expenses and fees | (0.1 | )% | (46 | ) | (0.1 | )% | (42 | ) | — | % | (4 | ) | (0.1 | )% | (22 | ) | (0.1 | )% | (21 | ) | — | % | (1 | ) | ||||||||||||||||||||||||
Net investment income | 4.9 | % | $ | 1,572 | 4.8 | % | $ | 1,551 | 0.1 | % | $ | 21 | 5.0 | % | $ | 801 | 5.0 | % | $ | 808 | — | % | $ | (7 | ) | |||||||||||||||||||||||
Average invested assets and cash | Average invested assets and cash | $ | 64,747 | $ | 65,288 | $ | (541 | ) | $ | 64,622 | $ | 65,033 | $ | (411 | ) | |||||||||||||||||||||||||||||||||
(1) | Limited partnership investments are primarily equity-based and do not have fixed returns by period. |
(2) | Investment income for other invested assets includes amortization of terminated cash flow hedges, which have no corresponding book value within the yield calculation. |
Nine months ended September 30, | Increase (decrease) | |||||||||||||||||||||||
2023 | 2022 | 2023 vs. 2022 | ||||||||||||||||||||||
(Amounts in millions) | Yield | Amount | Yield | Amount | Yield | Amount | ||||||||||||||||||
Fixed maturity securities—taxable | 4.5 | % | $ | 1,687 | 4.5 | % | $ | 1,734 | — | % | $ | (47 | ) | |||||||||||
Fixed maturity securities—non-taxable | 5.1 | % | 3 | 4.8 | % | 4 | 0.3 | % | (1 | ) | ||||||||||||||
Equity securities | 2.2 | % | 6 | 3.9 | % | 7 | (1.7 | )% | (1 | ) | ||||||||||||||
Commercial mortgage loans | 4.4 | % | 227 | 4.6 | % | 240 | (0.2 | )% | (13 | ) | ||||||||||||||
Policy loans | 10.1 | % | 167 | 9.9 | % | 156 | 0.2 | % | 11 | |||||||||||||||
Limited partnerships (1) | 4.0 | % | 76 | 5.0 | % | 77 | (1.0 | )% | (1 | ) | ||||||||||||||
Other invested assets (2) | 50.3 | % | 207 | 60.9 | % | 196 | (10.6 | )% | 11 | |||||||||||||||
Cash, cash equivalents, restricted cash and short-term investments | 4.7 | % | 68 | 0.7 | % | 8 | 4.0 | % | 60 | |||||||||||||||
Gross investment income before expenses and fees | 5.0 | % | 2,441 | 4.9 | % | 2,422 | 0.1 | % | 19 | |||||||||||||||
Expenses and fees | (0.1 | )% | (68 | ) | (0.1 | )% | (63 | ) | — | % | (5 | ) | ||||||||||||
Net investment income | 4.9 | % | $ | 2,373 | 4.8 | % | $ | 2,359 | 0.1 | % | $ | 14 | ||||||||||||
Average invested assets and cash | $ | 64,695 | $ | 65,214 | $ | (519 | ) | |||||||||||||||||
(1) | Limited partnership investments are primarily equity-based and do not have fixed returns by period. |
(2) | Investment income for other invested assets includes amortization of terminated cash flow hedges, which have no corresponding book value within the yield calculation. |
Three months ended June 30, | Six months ended June 30, | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||
(Amounts in millions) | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||
Realized investment gains (losses): | ||||||||||||||||||||||||||||||||
Available-for-sale fixed maturity securities: | ||||||||||||||||||||||||||||||||
Realized gains | $ | 18 | $ | 5 | $ | 21 | $ | 15 | $ | 5 | $ | 11 | $ | 26 | $ | 26 | ||||||||||||||||
Realized losses | (48 | ) | (9 | ) | (67 | ) | (27 | ) | (16 | ) | (38 | ) | (83 | ) | (65 | ) | ||||||||||||||||
Net realized gains (losses) on available-for-sale fixed maturity securities | (30 | ) | (4 | ) | (46 | ) | (12 | ) | (11 | ) | (27 | ) | (57 | ) | (39 | ) | ||||||||||||||||
Net realized gains (losses) on equity securities sold | (1 | ) | — | (1 | ) | — | — | — | (1 | ) | — | |||||||||||||||||||||
Net realized gains (losses) on limited partnerships | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Total net realized investment gains (losses) | (31 | ) | (4 | ) | (47 | ) | (12 | ) | (11 | ) | (27 | ) | (58 | ) | (39 | ) | ||||||||||||||||
Net change in allowance for credit losses on available-for-sale fixed maturity securities | 11 | — | (4 | ) | — | (2 | ) | — | (6 | ) | — | |||||||||||||||||||||
Write-down of available-for-sale fixed maturity securities | (1 | ) | — | (1 | ) | (2 | ) | — | — | (1 | ) | (2 | ) | |||||||||||||||||||
Net unrealized gains (losses) on equity securities still held | 21 | (26 | ) | 32 | (32 | ) | (12 | ) | (14 | ) | 20 | (46 | ) | |||||||||||||||||||
Net unrealized gains (losses) on limited partnerships | 40 | 24 | 40 | 59 | 14 | (24 | ) | 54 | 35 | |||||||||||||||||||||||
Commercial mortgage loans | — | 2 | (2 | ) | 3 | (1 | ) | — | (3 | ) | 3 | |||||||||||||||||||||
Derivative instruments | (1 | ) | 18 | 11 | 37 | (28 | ) | 7 | (17 | ) | 44 | |||||||||||||||||||||
Other | — | 5 | (1 | ) | 8 | (3 | ) | — | (4 | ) | 8 | |||||||||||||||||||||
Net investment gains (losses) | $ | 39 | $ | 19 | $ | 28 | $ | 61 | $ | (43 | ) | $ | (58 | ) | $ | (15 | ) | $ | 3 | |||||||||||||
from sales of U.S. corporate securities to manage asset exposure and to optimize cash at Genworth Holdings. |
June 30, 2023 | December 31, 2022 | September 30, 2023 | December 31, 2022 | |||||||||||||||||||||||||||||
(Amounts in millions) | Carrying value | % of total | Carrying value | % of total | Carrying value | % of total | Carrying value | % of total | ||||||||||||||||||||||||
Available-for-sale fixed maturity securities: | ||||||||||||||||||||||||||||||||
Public | $ | 31,665 | 52 | % | $ | 31,757 | 53 | % | $ | 30,004 | 51 | % | $ | 31,757 | 53 | % | ||||||||||||||||
Private | 14,405 | 24 | 14,826 | 24 | 13,964 | 24 | 14,826 | 24 | ||||||||||||||||||||||||
Equity securities | 378 | 1 | 319 | 1 | 363 | 1 | 319 | 1 | ||||||||||||||||||||||||
Commercial mortgage loans, net | 6,852 | 11 | 7,010 | 11 | 6,793 | 11 | 7,010 | 11 | ||||||||||||||||||||||||
Policy loans | 2,270 | 4 | 2,139 | 3 | 2,233 | 4 | 2,139 | 3 | ||||||||||||||||||||||||
Limited partnerships | 2,585 | 4 | 2,331 | 4 | 2,699 | 5 | 2,331 | 4 | ||||||||||||||||||||||||
Other invested assets | 648 | 1 | 566 | 1 | 645 | 1 | 566 | 1 | ||||||||||||||||||||||||
Cash, cash equivalents and restricted cash | 2,173 | 3 | 1,799 | 3 | 1,993 | 3 | 1,799 | 3 | ||||||||||||||||||||||||
Total cash, cash equivalents and invested assets | $ | 60,976 | 100 | % | $ | 60,747 | 100 | % | $ | 58,694 | 100 | % | $ | 60,747 | 100 | % | ||||||||||||||||
(Amounts in millions) | Amortized cost or cost | Gross unrealized gains | Gross unrealized losses | Allowance for credit losses | Fair value | Amortized cost or cost | Gross unrealized gains | Gross unrealized losses | Allowance for credit losses | Fair value | ||||||||||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||||||||||||||||||
U.S. government, agencies and government-sponsored enterprises | $ | 3,459 | $ | 97 | $ | (167 | ) | $ | — | $ | 3,389 | $ | 3,498 | $ | 6 | $ | (392 | ) | $ | — | $ | 3,112 | ||||||||||||||||||
State and political subdivisions | 2,611 | 21 | (289 | ) | — | 2,343 | 2,566 | 5 | (407 | ) | — | 2,164 | ||||||||||||||||||||||||||||
Non-U.S. government | 708 | 15 | (98 | ) | — | 625 | 699 | 9 | (125 | ) | — | 583 | ||||||||||||||||||||||||||||
U.S. corporate: | ||||||||||||||||||||||||||||||||||||||||
Utilities | 4,339 | 49 | (424 | ) | — | 3,964 | 4,454 | 13 | (611 | ) | — | 3,856 | ||||||||||||||||||||||||||||
Energy | 2,414 | 36 | (202 | ) | — | 2,248 | 2,454 | 18 | (265 | ) | — | 2,207 | ||||||||||||||||||||||||||||
Finance and insurance | 7,915 | 54 | (843 | ) | — | 7,126 | 7,920 | 22 | (1,069 | ) | — | 6,873 | ||||||||||||||||||||||||||||
Consumer—non-cyclical | 4,663 | 94 | (347 | ) | — | 4,410 | 4,632 | 32 | (538 | ) | — | 4,126 | ||||||||||||||||||||||||||||
Technology and communications | 3,196 | 49 | (311 | ) | — | 2,934 | 3,212 | 26 | (444 | ) | — | 2,794 | ||||||||||||||||||||||||||||
Industrial | 1,326 | 15 | (117 | ) | — | 1,224 | 1,309 | 8 | (168 | ) | — | 1,149 | ||||||||||||||||||||||||||||
Capital goods | 2,225 | 44 | (162 | ) | — | 2,107 | 2,255 | 19 | (235 | ) | — | 2,039 | ||||||||||||||||||||||||||||
Consumer—cyclical | 1,737 | 16 | (139 | ) | — | 1,614 | 1,736 | 6 | (194 | ) | — | 1,548 | ||||||||||||||||||||||||||||
Transportation | 1,171 | 33 | (87 | ) | — | 1,117 | 1,181 | 16 | (131 | ) | — | 1,066 | ||||||||||||||||||||||||||||
Other | 311 | 4 | (16 | ) | — | 299 | 320 | 1 | (23 | ) | — | 298 | ||||||||||||||||||||||||||||
Total U.S. corporate | 29,297 | 394 | (2,648 | ) | — | 27,043 | 29,473 | 161 | (3,678 | ) | — | 25,956 | ||||||||||||||||||||||||||||
Non-U.S. corporate: | ||||||||||||||||||||||||||||||||||||||||
Utilities | 813 | — | (78 | ) | — | 735 | 809 | — | (90 | ) | — | 719 | ||||||||||||||||||||||||||||
Energy | 1,043 | 21 | (62 | ) | — | 1,002 | 1,054 | 10 | (86 | ) | — | 978 | ||||||||||||||||||||||||||||
Finance and insurance | 2,054 | 33 | (188 | ) | — | 1,899 | 2,045 | 22 | (223 | ) | — | 1,844 | ||||||||||||||||||||||||||||
Consumer—non-cyclical | 666 | 3 | (77 | ) | — | 592 | 688 | 1 | (107 | ) | — | 582 | ||||||||||||||||||||||||||||
Technology and communications | 977 | 7 | (93 | ) | — | 891 | 974 | 1 | (135 | ) | — | 840 | ||||||||||||||||||||||||||||
Industrial | 838 | 9 | (65 | ) | — | 782 | 853 | 2 | (86 | ) | — | 769 | ||||||||||||||||||||||||||||
Capital goods | 602 | 4 | (51 | ) | — | 555 | 593 | 1 | (70 | ) | — | 524 | ||||||||||||||||||||||||||||
Consumer—cyclical | 239 | 1 | (23 | ) | — | 217 | 241 | — | (30 | ) | — | 211 | ||||||||||||||||||||||||||||
Transportation | 360 | 12 | (26 | ) | — | 346 | 359 | 7 | (32 | ) | — | 334 | ||||||||||||||||||||||||||||
Other | 859 | 13 | (53 | ) | — | 819 | 819 | 3 | (69 | ) | — | 753 | ||||||||||||||||||||||||||||
Total non-U.S. corporate | 8,451 | 103 | (716 | ) | — | 7,838 | 8,435 | 47 | (928 | ) | — | 7,554 | ||||||||||||||||||||||||||||
Residential mortgage-backed | 997 | 4 | (67 | ) | — | 934 | 974 | 1 | (84 | ) | — | 891 | ||||||||||||||||||||||||||||
Commercial mortgage-backed | 1,990 | 1 | (297 | ) | (4 | ) | 1,690 | 1,868 | 1 | (360 | ) | (6 | ) | 1,503 | ||||||||||||||||||||||||||
Other asset-backed | 2,351 | 1 | (144 | ) | — | 2,208 | 2,342 | 1 | (138 | ) | — | 2,205 | ||||||||||||||||||||||||||||
Total available-for-sale fixed maturity securities | $ | 49,864 | $ | 636 | $ | (4,426 | ) | $ | (4 | ) | $ | 46,070 | $ | 49,855 | $ | 231 | $ | (6,112 | ) | $ | (6 | ) | $ | 43,968 | ||||||||||||||||
(Amounts in millions) | Amortized cost or cost | Gross unrealized gains | Gross unrealized losses | Allowance for credit losses | Fair value | Amortized cost or cost | Gross unrealized gains | Gross unrealized losses | Allowance for credit losses | Fair value | ||||||||||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||||||||||||||||||
U.S. government, agencies and government-sponsored enterprises | $ | 3,446 | $ | 86 | $ | (191 | ) | $ | — | $ | 3,341 | $ | 3,446 | $ | 86 | $ | (191 | ) | $ | — | $ | 3,341 | ||||||||||||||||||
State and political subdivisions | 2,726 | 19 | (346 | ) | — | 2,399 | 2,726 | 19 | (346 | ) | — | 2,399 | ||||||||||||||||||||||||||||
Non-U.S. government | 731 | 15 | (101 | ) | — | 645 | 731 | 15 | (101 | ) | — | 645 | ||||||||||||||||||||||||||||
U.S. corporate: | ||||||||||||||||||||||||||||||||||||||||
Utilities | 4,295 | 50 | (447 | ) | — | 3,898 | 4,295 | 50 | (447 | ) | — | 3,898 | ||||||||||||||||||||||||||||
Energy | 2,450 | 33 | (221 | ) | — | 2,262 | 2,450 | 33 | (221 | ) | — | 2,262 | ||||||||||||||||||||||||||||
Finance and insurance | 8,005 | 59 | (871 | ) | — | 7,193 | 8,005 | 59 | (871 | ) | — | 7,193 | ||||||||||||||||||||||||||||
Consumer—non-cyclical | 4,776 | 84 | (403 | ) | — | 4,457 | 4,776 | 84 | (403 | ) | — | 4,457 | ||||||||||||||||||||||||||||
Technology and communications | 3,265 | 43 | (361 | ) | — | 2,947 | 3,265 | 43 | (361 | ) | — | 2,947 | ||||||||||||||||||||||||||||
Industrial | 1,312 | 15 | (130 | ) | — | 1,197 | 1,312 | 15 | (130 | ) | — | 1,197 | ||||||||||||||||||||||||||||
Capital goods | 2,290 | 41 | (193 | ) | — | 2,138 | 2,290 | 41 | (193 | ) | — | 2,138 | ||||||||||||||||||||||||||||
Consumer—cyclical | 1,758 | 14 | (155 | ) | — | 1,617 | 1,758 | 14 | (155 | ) | — | 1,617 | ||||||||||||||||||||||||||||
Transportation | 1,165 | 32 | (97 | ) | — | 1,100 | 1,165 | 32 | (97 | ) | — | 1,100 | ||||||||||||||||||||||||||||
Other | 325 | 3 | (18 | ) | — | 310 | 325 | 3 | (18 | ) | — | 310 | ||||||||||||||||||||||||||||
Total U.S. corporate | 29,641 | 374 | (2,896 | ) | — | 27,119 | 29,641 | 374 | (2,896 | ) | — | 27,119 | ||||||||||||||||||||||||||||
Non-U.S. corporate: | ||||||||||||||||||||||||||||||||||||||||
Utilities | 817 | — | (77 | ) | — | 740 | 817 | — | (77 | ) | — | 740 | ||||||||||||||||||||||||||||
Energy | 1,009 | 19 | (68 | ) | — | 960 | 1,009 | 19 | (68 | ) | — | 960 | ||||||||||||||||||||||||||||
Finance and insurance | 2,124 | 30 | (208 | ) | — | 1,946 | 2,124 | 30 | (208 | ) | — | 1,946 | ||||||||||||||||||||||||||||
Consumer—non-cyclical | 655 | 1 | (90 | ) | — | 566 | 655 | 1 | (90 | ) | — | 566 | ||||||||||||||||||||||||||||
Technology and communications | 997 | 4 | (107 | ) | — | 894 | 997 | 4 | (107 | ) | — | 894 | ||||||||||||||||||||||||||||
Industrial | 880 | 8 | (70 | ) | — | 818 | 880 | 8 | (70 | ) | — | 818 | ||||||||||||||||||||||||||||
Capital goods | 606 | 3 | (63 | ) | — | 546 | 606 | 3 | (63 | ) | — | 546 | ||||||||||||||||||||||||||||
Consumer—cyclical | 308 | — | (32 | ) | — | 276 | 308 | — | (32 | ) | — | 276 | ||||||||||||||||||||||||||||
Transportation | 392 | 12 | (29 | ) | — | 375 | 392 | 12 | (29 | ) | — | 375 | ||||||||||||||||||||||||||||
Other | 932 | 15 | (58 | ) | — | 889 | 932 | 15 | (58 | ) | — | 889 | ||||||||||||||||||||||||||||
Total non-U.S. corporate | 8,720 | 92 | (802 | ) | — | 8,010 | 8,720 | 92 | (802 | ) | — | 8,010 | ||||||||||||||||||||||||||||
Residential mortgage-backed | 1,059 | 7 | (71 | ) | — | 995 | 1,059 | 7 | (71 | ) | — | 995 | ||||||||||||||||||||||||||||
Commercial mortgage-backed | 2,183 | 2 | (277 | ) | — | 1,908 | 2,183 | 2 | (277 | ) | — | 1,908 | ||||||||||||||||||||||||||||
Other asset-backed | 2,328 | 1 | (163 | ) | — | 2,166 | 2,328 | 1 | (163 | ) | — | 2,166 | ||||||||||||||||||||||||||||
Total available-for-sale fixed maturity securities | $ | 50,834 | $ | 596 | $ | (4,847 | ) | $ | — | $ | 46,583 | $ | 50,834 | $ | 596 | $ | (4,847 | ) | $ | — | $ | 46,583 | ||||||||||||||||||
June 30, 2023 | December 31, 2022 | September 30, 2023 | December 31, 2022 | |||||||||||||||||||||||||||||
(Amounts in millions) | Carrying value | % of total | Carrying value | % of total | Carrying value | % of total | Carrying value | % of total | ||||||||||||||||||||||||
Bank loan investments | $ | 518 | 80 | % | $ | 467 | 82 | % | $ | 530 | 82 | % | $ | 467 | 82 | % | ||||||||||||||||
Derivatives | 61 | 9 | 50 | 9 | 38 | 6 | 50 | 9 | ||||||||||||||||||||||||
Short-term investments | 23 | 4 | 3 | 1 | 30 | 5 | 3 | 1 | ||||||||||||||||||||||||
Other investments | 46 | 7 | 46 | 8 | 47 | 7 | 46 | 8 | ||||||||||||||||||||||||
Total other invested assets | $ | 648 | 100 | % | $ | 566 | 100 | % | $ | 645 | 100 | % | $ | 566 | 100 | % | ||||||||||||||||
(Notional in millions) | Measurement | December 31, 2022 | Additions | Maturities/ terminations | June 30, 2023 | Measurement | December 31, 2022 | Additions | Maturities/ terminations | September 30, 2023 | ||||||||||||||||||||||||||||||
Derivatives designated as hedges | ||||||||||||||||||||||||||||||||||||||||
Cash flow hedges: | ||||||||||||||||||||||||||||||||||||||||
Interest rate swaps | Notional | $ | 8,542 | $ | 927 | $ | (115 | ) | $ | 9,354 | Notional | $ | 8,542 | $ | 1,200 | $ | (261 | ) | $ | 9,481 | ||||||||||||||||||||
Foreign currency swaps | Notional | 144 | — | (13 | ) | 131 | Notional | 144 | — | (13 | ) | 131 | ||||||||||||||||||||||||||||
Forward bond purchase commitments | Notional | — | 75 | — | 75 | |||||||||||||||||||||||||||||||||||
Total cash flow hedges | 8,686 | 927 | (128 | ) | 9,485 | 8,686 | 1,275 | (274 | ) | 9,687 | ||||||||||||||||||||||||||||||
Total derivatives designated as hedges | 8,686 | 927 | (128 | ) | 9,485 | 8,686 | 1,275 | (274 | ) | 9,687 | ||||||||||||||||||||||||||||||
Derivatives not designated as hedges | ||||||||||||||||||||||||||||||||||||||||
Equity index options | Notional | 936 | 339 | (466 | ) | 809 | Notional | 936 | 513 | (682 | ) | 767 | ||||||||||||||||||||||||||||
Financial futures | Notional | 1,403 | 2,889 | (2,916 | ) | 1,376 | Notional | 1,403 | 4,216 | (4,351 | ) | 1,268 | ||||||||||||||||||||||||||||
Forward bond purchase commitments | Notional | — | 275 | — | 275 | Notional | — | 500 | — | 500 | ||||||||||||||||||||||||||||||
Total derivatives not designated as hedges | 2,339 | 3,503 | (3,382 | ) | 2,460 | 2,339 | 5,229 | (5,033 | ) | 2,535 | ||||||||||||||||||||||||||||||
Total derivatives | $ | 11,025 | $ | 4,430 | $ | (3,510 | ) | $ | 11,945 | $ | 11,025 | $ | 6,504 | $ | (5,307 | ) | $ | 12,222 | ||||||||||||||||||||||
(Number of policies) | Measurement | December 31, 2022 | Additions | Maturities/ terminations | June 30, 2023 | Measurement | December 31, 2022 | Additions | Maturities/ terminations | September 30, 2023 | ||||||||||||||||||||||||||||||
Derivatives not designated as hedges | ||||||||||||||||||||||||||||||||||||||||
Fixed indexed annuity embedded derivatives | Policies | 7,315 | — | (848 | ) | 6,467 | Policies | 7,315 | — | (1,177 | ) | 6,138 | ||||||||||||||||||||||||||||
Indexed universal life embedded derivatives | Policies | 771 | — | (15 | ) | 756 | Policies | 771 | — | (22 | ) | 749 |
(Amounts in millions) | 2023 | 2022 | 2023 | 2022 | ||||||||||||
Net cash from operating activities | $ | 275 | $ | 337 | $ | 450 | $ | 645 | ||||||||
Net cash from investing activities | 917 | 535 | 913 | 452 | ||||||||||||
Net cash used by financing activities | (818 | ) | (719 | ) | (1,170 | ) | (1,107 | ) | ||||||||
Net increase in cash and cash equivalents | $ | 374 | $ | 153 | ||||||||||||
Net increase (decrease) in cash and cash equivalents before foreign exchange effect | $ | 193 | $ | (10 | ) | |||||||||||
(Dollar amounts in millions, except share amounts) | Total number of shares purchased | Average price paid per share | Total number of shares purchased as part of publicly announced program | Approximate dollar amount of shares that may yet be purchased under the program (1) | ||||||||||||
April 1, 2023 through April 30, 2023 | 9,121,315 | $ | 5.48 | 9,121,315 | $ | 168 | ||||||||||
May 1, 2023 through May 31, 2023 | 11,084,291 | $ | 5.41 | 11,084,291 | $ | 108 | ||||||||||
June 1, 2023 through June 30, 2023 | 341,518 | $ | 5.86 | 341,518 | $ | 106 | ||||||||||
Total | 20,547,124 | 20,547,124 | ||||||||||||||
(Dollar amounts in millions, except share amounts) | Total number of shares purchased | Average price paid per share | Total number of shares purchased as part of publicly announced program | Approximate dollar amount of shares that may yet be purchased under the program (1) | ||||||||||||
July 1, 2023 through July 31, 2023 | 3,703,015 | $ | 5.40 | 3,703,015 | $ | 436 | ||||||||||
August 1, 2023 through August 31, 2023 | 4,424,891 | $ | 5.79 | 4,424,891 | $ | 410 | ||||||||||
September 1, 2023 through September 30, 2023 | 5,939,872 | $ | 5.79 | 5,939,872 | $ | 376 | ||||||||||
Total | 14,067,778 | 14,067,778 | ||||||||||||||
(1) | On May 2, 2022, Genworth Financial’s Board of Directors authorized a share repurchase program under which Genworth Financial may repurchase up to $350 million of its outstanding Class A common stock. On July 31, 2023, Genworth Financial’s Board of Directors authorized an additional $350 million of share repurchases under the existing program. Under the program, share repurchases may be made at Genworth’s discretion from time to time in open market transactions, privately negotiated transactions, or other means, including through Rule 10b5-1 trading plans. The timing and number of shares repurchased under the program will depend on a variety of factors, including Genworth Financial’s stock price and trading volume, and general business and market conditions, among other factors. The authorization has no expiration date and may be modified, suspended or terminated at any time. For additional information on the share repurchase program, see “Part I—Item 2—Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources.” |
Number | Description | |
31.1 | ||
31.2 | ||
32.1 | ||
32.2 | ||
101.INS | Inline XBRL Instance Document | |
101.SCH | Inline XBRL Taxonomy Extension Schema Document | |
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | |
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | |
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document and included in Exhibit 101) |
Date: November 9, 2023 | GENWORTH FINANCIAL, INC. (Registrant) | |||||
By: | /s/ Cristina E. Ahn | |||||
Cristina E. Ahn | ||||||
Vice President and Controller (Principal Accounting Officer) |