Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | Apr. 30, 2020 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Entity Registrant Name | MetLife, Inc. | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-15787 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 13-4075851 | |
Entity Address, Address Line One | 200 Park Avenue, | |
Entity Address, City or Town | New York, | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10166-0188 | |
City Area Code | 212 | |
Local Phone Number | 578-9500 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Central Index Key | 0001099219 | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 907,588,731 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 | |
Common Stock | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Common Stock, par value $0.01 | |
Trading Symbol | MET | |
Security Exchange Name | NYSE | |
Floating Rate Non-Cumulative Preferred Stock, Series A, par value $0.01 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Floating Rate Non-Cumulative Preferred Stock, Series A, par value $0.01 | |
Trading Symbol | MET PRA | |
Security Exchange Name | NYSE | |
Depositary Shares, each representing a 1/1,000th interest in a share of 5.625% Non-Cumulative Preferred Stock, Series E | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Depositary Shares, each representing a 1/1,000th interest in a share of 5.625% Non-Cumulative Preferred Stock, Series E | |
Trading Symbol | MET PRE | |
Security Exchange Name | NYSE | |
Depositary Shares, each representing a 1/1,000th interest in a share of 4.75% Non-Cumulative Preferred Stock, Series F | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Depositary Shares, each representing a 1/1,000th interest ina share of 4.75% Non-Cumulative Preferred Stock, Series F | |
Trading Symbol | MET PRF | |
Security Exchange Name | NYSE |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Investments: | ||
Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $302,624 and $297,655, respectively; allowance for credit loss of $187 and $0, respectively) | $ 326,685 | $ 327,820 |
Equity securities, at estimated fair value | 1,050 | 1,342 |
Contractholder-directed equity securities and fair value option securities, at estimated fair value (includes $3 and $3, respectively, relating to variable interest entities) | 11,145 | 13,102 |
Mortgage loans (net of allowance for credit loss of $464 and $353, respectively; includes $180 and $188, respectively, under the fair value option and $0 and $59, respectively, of mortgage loans held-for-sale) | 81,344 | 80,529 |
Policy loans | 9,638 | 9,680 |
Real estate and real estate joint ventures (includes $144 and $127, respectively, under the fair value option) | 11,250 | 10,741 |
Other limited partnership interests | 8,230 | 7,716 |
Short-term investments, principally at estimated fair value | 5,930 | 3,850 |
Other invested assets (includes $2,019 and $2,299, respectively, of leveraged and direct financing leases and $301 and $290, respectively, relating to variable interest entities) | 27,839 | 19,015 |
Total investments | 483,111 | 473,795 |
Cash and cash equivalents, principally at estimated fair value (includes $12 and $12, respectively, relating to variable interest entities) | 24,094 | 16,598 |
Accrued investment income | 3,828 | 3,523 |
Premiums, reinsurance and other receivables (includes $2 and $4, respectively, relating to variable interest entities) | 21,224 | 20,443 |
Deferred policy acquisition costs and value of business acquired | 17,254 | 17,833 |
Goodwill | 9,159 | 9,308 |
Other assets (includes $2 and $2, respectively, relating to variable interest entities) | 10,617 | 10,518 |
Separate account assets | 168,454 | 188,445 |
Total assets | 737,741 | 740,463 |
Liabilities | ||
Future policy benefits | 193,106 | 194,909 |
Policyholder account balances | 193,875 | 192,627 |
Other policy-related balances | 16,755 | 17,171 |
Policyholder dividends payable | 654 | 681 |
Policyholder dividend obligation | 1,677 | 2,020 |
Payables for collateral under securities loaned and other transactions | 35,530 | 26,745 |
Short-term debt | 298 | 235 |
Long-term debt (includes $5 and $5, respectively, at estimated fair value, relating to variable interest entities) | 14,510 | 13,466 |
Collateral financing arrangement | 981 | 993 |
Junior subordinated debt securities | 3,151 | 3,150 |
Current income tax payable | 708 | 363 |
Deferred income tax liability | 10,009 | 9,097 |
Other liabilities (includes $1 and $1, respectively, relating to variable interest entities) | 27,570 | 24,179 |
Separate account liabilities | 168,454 | 188,445 |
Total liabilities | 667,278 | 674,081 |
Contingencies, Commitments and Guarantees (Note 15) | ||
MetLife, Inc.’s stockholders’ equity: | ||
Preferred stock, par value $0.01 per share; $4,405 and $3,405, respectively, aggregate liquidation preference | 0 | 0 |
Common stock, par value $0.01 per share; 3,000,000,000 shares authorized; 1,180,575,685 and 1,177,680,299 shares issued, respectively; 907,568,876 and 915,338,098 shares outstanding, respectively | 12 | 12 |
Additional paid-in capital | 33,711 | 32,680 |
Retained earnings | 36,919 | 33,078 |
Treasury stock, at cost; 273,006,809 and 262,342,201 shares, respectively | (13,178) | (12,678) |
Accumulated other comprehensive income (loss) (AOCI) | 12,757 | 13,052 |
Total MetLife, Inc.’s stockholders’ equity | 70,221 | 66,144 |
Noncontrolling interests | 242 | 238 |
Total equity | 70,463 | 66,382 |
Total liabilities and equity | $ 737,741 | $ 740,463 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Assets | ||
Amortized cost of fixed maturity securities available-for-sale | $ 302,624 | $ 297,655 |
Amortized cost of fixed maturity securities valuation allowances | 187 | 0 |
Contractholder-directed equity securities and fair value option securities relating to variable interest entities | 11,145 | 13,102 |
Mortgage loans valuation allowances | 464 | 353 |
Mortgage loans held-for-sale | 0 | 59 |
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 81,344 | 80,529 |
Real estate held-for-sale | 144 | 127 |
Other Invested Assets - Leveraged and Direct Financing Leases | 2,019 | 2,299 |
Other invested assets relating to variable interest entities | 27,839 | 19,015 |
Cash and cash equivalents relating to variable interest entities | 24,094 | 16,598 |
Premiums, reinsurance and other receivables relating to variable interest entities | 21,224 | 20,443 |
Other assets relating to variable interest entities | 10,617 | 10,518 |
Liabilities | ||
Long-term debt, at estimated fair value, relating to variable interest entities | 14,510 | 13,466 |
Other liabilities relating to variable interest entities | $ 27,570 | $ 24,179 |
MetLife, Inc.’s stockholders’ equity: | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, aggregate liquidation preference | $ 4,405 | $ 3,405 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 3,000,000,000 | 3,000,000,000 |
Common stock, shares issued | 1,180,575,685 | 1,177,680,299 |
Common stock, shares outstanding | 907,568,876 | 915,338,098 |
Treasury stock, shares | 273,006,809 | 262,342,201 |
Residential mortgage loans - FVO | ||
Assets | ||
Mortgage Loans on Real Estate, Commercial and Consumer, Net | $ 180 | $ 188 |
Variable interest entities | ||
Assets | ||
Contractholder-directed equity securities and fair value option securities relating to variable interest entities | 3 | 3 |
Other invested assets relating to variable interest entities | 301 | 290 |
Cash and cash equivalents relating to variable interest entities | 12 | 12 |
Premiums, reinsurance and other receivables relating to variable interest entities | 2 | 4 |
Other assets relating to variable interest entities | 2 | 2 |
Liabilities | ||
Long-term debt, at estimated fair value, relating to variable interest entities | 5 | 5 |
Other liabilities relating to variable interest entities | $ 1 | $ 1 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenues | ||
Premiums | $ 9,466 | $ 9,405 |
Universal life and investment-type product policy fees | 1,431 | 1,365 |
Net investment income | 3,061 | 4,908 |
Other revenues | 439 | 494 |
Net investment gains (losses) | (288) | 15 |
Net derivative gains (losses) | 4,201 | 115 |
Total revenues | 18,310 | 16,302 |
Expenses | ||
Policyholder benefits and claims | 9,022 | 9,072 |
Interest credited to policyholder account balances | 80 | 1,961 |
Policyholder dividends | 292 | 300 |
Other expenses | 3,273 | 3,225 |
Total expenses | 12,667 | 14,558 |
Income (loss) before provision for income tax | 5,643 | 1,744 |
Provision for income tax expense (benefit) | 1,242 | 359 |
Net income (loss) | 4,401 | 1,385 |
Less: Net income (loss) attributable to noncontrolling interests | 3 | 4 |
Net income (loss) attributable to MetLife, Inc. | 4,398 | 1,381 |
Less: Preferred stock dividends | 32 | 32 |
Net income (loss) available to MetLife, Inc.’s common shareholders | 4,366 | 1,349 |
Comprehensive income (loss) | 4,107 | 6,555 |
Less: Comprehensive income (loss) attributable to noncontrolling interests, net of income tax | 4 | 6 |
Comprehensive income (loss) attributable to MetLife, Inc. | $ 4,103 | $ 6,549 |
Net income (loss) available to MetLife, Inc.’s common shareholders per common share: | ||
Basic | $ 4.78 | $ 1.41 |
Diluted | $ 4.75 | $ 1.40 |
Consolidated Statements of Equi
Consolidated Statements of Equity (Unaudited) - USD ($) $ in Millions | Total | Cumulative Effect, Period of Adoption, Adjustment | Cumulative Effect, Period of Adoption, Adjusted Balance | Preferred Stock | Preferred StockCumulative Effect, Period of Adoption, Adjusted Balance | Common Stock | Common StockCumulative Effect, Period of Adoption, Adjusted Balance | Additional Paid-in Capital | Additional Paid-in CapitalCumulative Effect, Period of Adoption, Adjusted Balance | Retained Earnings | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | Retained EarningsCumulative Effect, Period of Adoption, Adjusted Balance | Treasury Stock at Cost | Treasury Stock at CostCumulative Effect, Period of Adoption, Adjusted Balance | Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss)Cumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Income (Loss)Cumulative Effect, Period of Adoption, Adjusted Balance | Total MetLife, Inc.'s Stockholders' Equity | Total MetLife, Inc.'s Stockholders' EquityCumulative Effect, Period of Adoption, Adjustment | Total MetLife, Inc.'s Stockholders' EquityCumulative Effect, Period of Adoption, Adjusted Balance | Noncontrolling Interests | Noncontrolling InterestsCumulative Effect, Period of Adoption, Adjusted Balance |
Beginning Balance at Dec. 31, 2018 | $ 52,958 | $ 95 | $ 53,053 | $ 0 | $ 0 | $ 12 | $ 12 | $ 32,474 | $ 32,474 | $ 28,926 | $ 74 | $ 29,000 | $ (10,393) | $ (10,393) | $ 1,722 | $ 21 | $ 1,743 | $ 52,741 | $ 95 | $ 52,836 | $ 217 | $ 217 |
Preferred stock issuance | 0 | |||||||||||||||||||||
Treasury stock acquired in connection with share repurchases | (500) | (500) | (500) | |||||||||||||||||||
Stock-based compensation | 61 | 61 | 61 | |||||||||||||||||||
Dividends on preferred stock | (32) | (32) | (32) | |||||||||||||||||||
Dividends on common stock | (405) | (405) | (405) | |||||||||||||||||||
Change in equity of noncontrolling interests | 6 | 0 | 6 | |||||||||||||||||||
Net income (loss) | 1,385 | 1,381 | 1,381 | 4 | ||||||||||||||||||
Other comprehensive income (loss), net of income tax | 5,170 | 5,168 | 5,168 | 2 | ||||||||||||||||||
Ending Balance at Mar. 31, 2019 | 58,738 | 0 | 12 | 32,535 | 29,944 | (10,893) | 6,911 | 58,509 | 229 | |||||||||||||
Beginning Balance at Dec. 31, 2019 | 66,382 | $ (121) | $ 66,261 | 0 | $ 0 | 12 | $ 12 | 32,680 | $ 32,680 | 33,078 | $ (121) | $ 32,957 | (12,678) | $ (12,678) | 13,052 | $ 13,052 | 66,144 | $ (121) | $ 66,023 | 238 | $ 238 | |
Preferred stock issuance | 972 | 972 | 972 | |||||||||||||||||||
Treasury stock acquired in connection with share repurchases | (500) | (500) | (500) | |||||||||||||||||||
Stock-based compensation | 59 | 59 | 59 | |||||||||||||||||||
Dividends on preferred stock | (32) | (32) | (32) | |||||||||||||||||||
Dividends on common stock | (404) | (404) | (404) | |||||||||||||||||||
Net income (loss) | 4,401 | 4,398 | 4,398 | 3 | ||||||||||||||||||
Other comprehensive income (loss), net of income tax | (294) | (295) | (295) | 1 | ||||||||||||||||||
Ending Balance at Mar. 31, 2020 | $ 70,463 | $ 0 | $ 12 | $ 33,711 | $ 36,919 | $ (13,178) | $ 12,757 | $ 70,221 | $ 242 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Cash Flows [Abstract] | ||
Net cash provided by (used in) operating activities | $ 1,847 | $ 2,072 |
Cash flows from investing activities | ||
Sales, maturities and repayments of fixed maturity securities available-for-sale | 19,378 | 21,606 |
Sales, maturities and repayments of equity securities | 25 | 149 |
Sales, maturities and repayments of mortgage loans | 2,821 | 1,769 |
Sales, maturities and repayments of real estate and real estate joint ventures | 90 | 103 |
Sales, maturities and repayments of other limited partnership interests | 146 | 250 |
Purchases of fixed maturity securities available-for-sale | (26,924) | (23,386) |
Purchases of equity securities | (35) | (16) |
Purchases of mortgage loans | (4,151) | (4,416) |
Purchases of real estate and real estate joint ventures | (573) | (483) |
Purchases of other limited partnership interests | (480) | (428) |
Cash received in connection with freestanding derivatives | 4,987 | 1,021 |
Cash paid in connection with freestanding derivatives | (1,440) | (1,231) |
Net change in policy loans | 20 | 16 |
Net change in short-term investments | (2,125) | (545) |
Net change in other invested assets | (1) | (53) |
Other, net | (75) | (55) |
Net cash provided by (used in) investing activities | (8,337) | (5,699) |
Cash flows from financing activities | ||
Policyholder account balances: Deposits | 24,820 | 23,891 |
Policyholder account balances: Withdrawals | (20,477) | (20,904) |
Net change in payables for collateral under securities loaned and other transactions | 8,796 | 388 |
Cash received for other transactions with tenors greater than three months | 50 | 0 |
Cash paid for other transactions with tenors greater than three months | (50) | (75) |
Long-term debt issued | 1,074 | 0 |
Long-term debt repaid | (6) | (10) |
Collateral financing arrangement repaid | (12) | (12) |
Financing element on certain derivative instruments and other derivative related transactions, net | (167) | (29) |
Treasury stock acquired in connection with share repurchases | (500) | (500) |
Preferred stock issued, net of issuance costs | 972 | 0 |
Dividends on preferred stock | (32) | (32) |
Dividends on common stock | (404) | (405) |
Other, net | 93 | 4 |
Net cash provided by (used in) financing activities | 14,157 | 2,316 |
Effect of change in foreign currency exchange rates on cash and cash equivalents balances | (171) | (4) |
Change in cash and cash equivalents | 7,496 | (1,315) |
Cash and cash equivalents, beginning of period | 16,598 | 15,821 |
Cash and cash equivalents, end of period | 24,094 | 14,506 |
Supplemental disclosures of cash flow information | ||
Net cash paid for Interest | 136 | 148 |
Net cash paid (received) for Income tax | (35) | 114 |
Non-cash transactions: | ||
Operating lease liability associated with the recognition of right-of-use assets | $ 0 | $ 153 |
Business, Basis of Presentation
Business, Basis of Presentation and Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business, Basis of Presentation and Summary of Significant Accounting Policies | 1. Business, Basis of Presentation and Summary of Significant Accounting Policies Business “MetLife” and the “Company” refer to MetLife, Inc., a Delaware corporation incorporated in 1999, its subsidiaries and affiliates. MetLife is one of the world’s leading financial services companies, providing insurance, annuities, employee benefits and asset management. MetLife is organized into five segments: U.S.; Asia; Latin America; Europe, the Middle East and Africa (“EMEA”); and MetLife Holdings. Basis of Presentation The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to adopt accounting policies and make estimates and assumptions that affect amounts reported on the interim condensed consolidated financial statements. In applying these policies and estimates, management makes subjective and complex judgments that frequently require assumptions about matters that are inherently uncertain, including the novel coronavirus COVID-19 pandemic (“COVID-19 Pandemic”). Many of these policies, estimates and related judgments are common in the insurance and financial services industries; others are specific to the Company’s business and operations. Actual results could differ from these estimates. The accompanying interim condensed consolidated financial statements are unaudited and reflect all adjustments (including normal recurring adjustments) necessary to present fairly the financial position, results of operations and cash flows for the interim periods presented in conformity with GAAP. Interim results are not necessarily indicative of full year performance. The December 31, 2019 consolidated balance sheet data was derived from audited consolidated financial statements included in MetLife, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2019 (the “2019 Annual Report”), which include all disclosures required by GAAP. Therefore, these interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements of the Company included in the 2019 Annual Report. Consolidation The accompanying interim condensed consolidated financial statements include the accounts of MetLife, Inc. and its subsidiaries, as well as partnerships and joint ventures in which the Company has control, and variable interest entities (“VIEs”) for which the Company is the primary beneficiary. Intercompany accounts and transactions have been eliminated. The Company uses the equity method of accounting or the fair value option (“FVO”) for real estate joint ventures and other limited partnership interests (“investee”) when it has more than a minor ownership interest or more than a minor influence over the investee’s operations. The Company generally recognizes its share of the investee’s earnings in net investment income on a three-month lag in instances where the investee’s financial information is not sufficiently timely or when the investee’s reporting period differs from the Company’s reporting period. Reclassifications Certain amounts in the prior year periods’ interim condensed consolidated financial statements and related footnotes thereto have been reclassified to conform to the 2020 presentation as discussed throughout the Notes to the Interim Condensed Consolidated Financial Statements. Summary of Significant Accounting Policies The following are the Company’s significant accounting policies updated for the January 1, 2020 adoption of new accounting pronouncements related to investments and goodwill. Net Investment Income and Net Investment Gains (Losses) Income from investments is reported within net investment income, unless otherwise stated herein. Gains and losses on sales of investments, intent-to-sell impairments, as well as provisions for credit loss in the allowance for credit loss (“ACL”) on fixed maturity securities available-for-sale (“AFS”), mortgage loans and investments in leases and subsequent changes in the ACL or for impairment losses on real estate investments, are reported within net investment gains (losses), unless otherwise stated herein. Accrued investment income is presented separately on the consolidated balance sheet and excluded from the carrying value of the related investments, primarily fixed maturity securities and mortgage loans. Fixed Maturity Securities The majority of the Company’s fixed maturity securities are classified as AFS and are reported at their estimated fair value. Unrealized investment gains and losses on these securities are recorded as a separate component of other comprehensive income (loss) (“OCI”), net of policy-related amounts and deferred income taxes. All security transactions are recorded on a trade date basis. Sales of securities are determined on a specific identification basis. Interest income and prepayment fees are recognized when earned. Interest income is recognized using an effective yield method giving effect to amortization of premium and accretion of discount and is based on the estimated economic life of the securities, which for mortgage-backed and asset-backed securities considers the estimated timing and amount of prepayments of the underlying loans. See also Note 8 “ — Fixed Maturity Securities AFS — Methodology for Amortization of Premium and Accretion of Discount on Structured Products” in the Notes to the Consolidated Financial Statements included in the 2019 Annual Report. The amortization of premium and accretion of discount also takes into consideration call and maturity dates. The Company periodically evaluates its fixed maturity securities AFS for impairment. The assessment of whether impairments have occurred is based on management’s case-by-case evaluation of the underlying reasons for the decline in estimated fair value as described in Note 6 “— Fixed Maturity Securities Available-for-Sale — Evaluation of Fixed Maturity Securities AFS for Credit Loss.” Prior to January 1, 2020, the Company applied other than temporary impairment (“OTTI”) guidance for securities in an unrealized loss position. An OTTI was recognized in earnings within net investment gains (losses) when it was anticipated that the amortized cost would not be recovered. When either: (i) the Company had the intent to sell the security, or (ii) it was more likely than not that the Company would be required to sell the security before recovery, the reduction of amortized cost and the OTTI recognized in earnings was the entire difference between the security’s amortized cost and estimated fair value. If neither of these conditions existed, the difference between the amortized cost of the security and the present value of projected future cash flows expected to be collected was recognized as a reduction of amortized cost and an OTTI in earnings. If the estimated fair value was less than the present value of projected future cash flows expected to be collected, this portion of OTTI related to other-than-credit factors was recorded in OCI. On January 1, 2020, the Company adopted accounting standards update (“ASU”) 2016-13, Financial Instruments-Credit Losses (Topic 326) Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”) using a modified retrospective approach. Under ASU 2016-13, for securities in an unrealized loss position, a credit loss is recognized in earnings within net investment gains (losses) when it is anticipated that the amortized cost will not be recovered. When either: (i) the Company has the intent to sell the security, or (ii) it is more likely than not that the Company will be required to sell the security before recovery, the reduction of amortized cost and the loss recognized in earnings is the entire difference between the security’s amortized cost and estimated fair value. If neither of these conditions exists, the difference between the amortized cost of the security and the present value of projected future cash flows expected to be collected is recognized as a “credit loss” by establishing an ACL with a corresponding charge to earnings in net investment gains (losses). However, the ACL is limited by the amount that the fair value is less than the amortized cost. This limitation is known as the “fair value floor”. If the estimated fair value is less than the present value of projected future cash flows expected to be collected, this portion of the decline in value related to other-than-credit factors (“noncredit loss”) is recorded in OCI. The new guidance also replaces the model for purchased credit impaired (“PCI”) fixed maturity securities AFS and financing receivables and requires the establishment of an ACL at acquisition, which is added to the purchase price to establish the initial amortized cost of the investment. Upon adoption, the replacement of the PCI model did not have a material impact on the Company’s interim condensed consolidated financial statements. Mortgage Loans ASU 2016-13 requires an ACL based on the expectation of lifetime credit loss on financing receivables carried at amortized cost, including, but not limited to, mortgage loans and leveraged and direct financing leases, as described in Note 6 . The Company disaggregates its mortgage loan investments into three portfolio segments: commercial, agricultural and residential. Also included in commercial mortgage loans are revolving line of credit loans collateralized by commercial properties. The accounting policies that are applicable to all portfolio segments are presented below and the accounting policies related to each of the portfolio segments are included in Note 6 . Mortgage loans are stated at unpaid principal balance, adjusted for any unamortized premium or discount, deferred fees or expenses, and are net of ACL. Interest income and prepayment fees are recognized when earned. Interest income is recognized using an effective yield method giving effect to amortization of premium and accretion of discount. The Company ceases to accrue interest when the collection of interest is not considered probable, which is based on a current evaluation of the status of the borrower including the number of days past due. When a loan is placed on non-accrual status, uncollected past due accrued interest income that is considered uncollectible is charged-off against net investment income. Generally, the accrual of interest income resumes after all delinquent amounts are paid and management believes all future principal and interest payments will be collected. The Company records cash receipts on non-accruing loans in accordance with the loan agreement. The Company records charge-offs upon the realization of a credit loss, typically through foreclosure or after a decision is made to sell a loan, or for residential loans when, after considering the individual consumer’s financial status, management believes amounts are not collectible. Gain or loss upon charge-off is recorded, net of previously established ACL, in net investment gains (losses). Cash recoveries on principal amounts previously charged-off are generally recorded in net investment gains. Also included in mortgage loans are residential mortgage loans for which the FVO was elected, and which are stated at estimated fair value. Changes in estimated fair value are recognized in net investment income. Goodwill On January 1, 2020, the Company adopted ASU 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment , using a prospective transition approach for goodwill impairment tests subsequent to January 1, 2020. As a result of the new guidance, Step 2 of the goodwill impairment test (measuring a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying value of that goodwill) has been eliminated and the Company is only required to perform a one-step goodwill impairment test as described below. Goodwill represents the future economic benefits arising from net assets acquired in a business combination that are not individually identified and recognized. Goodwill is calculated as the excess of cost over the estimated fair value of such net assets acquired, is not amortized, and is tested for impairment based on a fair value approach at least annually, or more frequently if events or circumstances indicate that there may be justification for conducting an interim test. The Company performs its annual goodwill impairment testing during the third quarter based upon data as of the close of the second quarter. The impairment test is performed at the reporting unit level, which is the operating segment or a business one level below the operating segment, if discrete financial information is prepared and regularly reviewed by management at that level. For purposes of goodwill impairment testing, if the carrying value of a reporting unit exceeds its estimated fair value, an impairment charge would be recognized for the amount by which the carrying value exceeds the reporting unit’s fair value; however, the loss recognized would not exceed the total amount of goodwill allocated to that reporting unit. Additionally, the Company will consider income tax effects from any tax deductible goodwill on the carrying value of the reporting unit when measuring the goodwill impairment loss, if applicable. On an ongoing basis, the Company evaluates potential triggering events that may affect the estimated fair value of the Company’s reporting units to assess whether any goodwill impairment exists. Deteriorating or adverse market conditions for certain reporting units may have a significant impact on the estimated fair value of these reporting units and could result in future impairments of goodwill. In the first quarter of 2020, the Company performed interim goodwill impairment testing on all of its reporting units due to the recent economic impacts caused by the COVID-19 Pandemic. The interim goodwill impairment testing was conducted by measuring the estimated fair value of the reporting unit and comparing such estimated fair value to the carrying value of the reporting unit. The result of the interim goodwill impairment testing was that the estimated fair value exceeded the carrying value of its reporting units and the Company determined that its goodwill in the current quarter was not impaired, although the amount of excess of estimated fair value above the carrying value for the reporting units has decreased significantly since the previous annual test. The excess of estimated fair value over carrying value in the Asia and EMEA reporting units has decreased below what would be considered a substantial margin . Recent Accounting Pronouncements Changes to GAAP are established by the Financial Accounting Standards Board (“FASB”) in the form of ASUs to the FASB Accounting Standards Codification. The Company considers the applicability and impact of all ASUs. The following tables provide a description of new ASUs issued by the FASB and the impact of the adoption on the Company’s consolidated financial statements. Adoption of New Accounting Pronouncements Except as noted below, the ASUs adopted by the Company effective January 1, 2020 did not have a material impact on its consolidated financial statements or disclosures. Standard Description Effective Date and Method of Adoption Impact on Financial Statements ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting The new guidance provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The expedients and exceptions provided by the amendments do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, with certain exceptions. Effective for contract modifications made between March 12, 2020 and December 31, 2022 The new guidance will reduce the operational and financial impacts of contract modifications that replace a reference rate, such as London InterBank Offered Rate (LIBOR), affected by reference rate reform. The adoption of the new guidance did not have an impact on the Company’s interim condensed consolidated financial statements. The Company will continue to evaluate the impacts of reference rate reform on contract modifications and hedging relationships through December 31, 2022. ASU 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment The new guidance simplifies the former two-step goodwill impairment test by eliminating Step 2 of the test. The new guidance requires a one-step impairment test in which an entity compares the fair value of a reporting unit with its carrying amount and recognizes an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value, if any. January 1, 2020, the Company adopted, using a prospective approach. The adoption of the new guidance reduced the complexity involved with the evaluation of goodwill for impairment. The impact of the new guidance will depend on the outcomes of future goodwill impairment tests. ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, as clarified and amended by ASU 2018-19 , Codification Improvements to Topic 326, Financial Instruments-Credit Losses; ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments-Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments; ASU 2019-05 , Financial Instruments-Credit Losses (Topic 326): Targeted Transition Relief; and ASU 2019-11, Codification Improvements to Topic 326, Financial Instruments-Credit Losses This new guidance requires an ACL based on the expectation of lifetime credit loss on financing receivables carried at amortized cost, including, but not limited to, mortgage loans, premium receivables, reinsurance receivables and leveraged and direct financing leases. The former model for OTTI on fixed maturity securities AFS has been modified and requires the recording of an ACL instead of a reduction of the amortized cost. Any improvements in expected future cash flows will no longer be reflected as a prospective yield adjustment, but instead will be reflected as a reduction in the ACL. The new guidance also replaces the model for PCI fixed maturity securities AFS and financing receivables and requires the establishment of an ACL at acquisition, which is added to the purchase price to establish the initial amortized cost of the investment. The new guidance also requires enhanced disclosures. January 1, 2020 for substantially all financial assets, the Company adopted using a modified retrospective approach. For previously impaired fixed maturity securities AFS and certain fixed maturity securities AFS acquired with evidence of credit quality deterioration since origination, the Company adopted prospectively on January 1, 2020. The adoption of this guidance resulted in a $121 million, net of income tax, decrease to retained earnings primarily related to the Company’s mortgage loan investments. The Company has included the required disclosures within Note 6. Future Adoption of New Accounting Pronouncements ASUs not listed below were assessed and either determined to be not applicable or are not expected to have a material impact on the Company’s consolidated financial statements or disclosures. ASUs issued but not yet adopted as of March 31, 2020 that are currently being assessed and may or may not have a material impact on the Company’s consolidated financial statements or disclosures are summarized in the table below. Standard Description Effective Date and Method of Adoption Impact on Financial Statements ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes The new guidance simplifies the accounting for income taxes by removing certain exceptions to the tax accounting guidance and providing clarification to other specific tax accounting guidance to eliminate variations in practice. Specifically, it removes the exceptions related to the a) incremental approach for intraperiod tax allocation when there is a loss from continuing operations and income or a gain from other items, b) recognition of a deferred tax liability when foreign investment ownership changes from equity method investment to consolidated subsidiary and vice versa and c) use of interim period tax accounting for year-to-date losses that exceed anticipated losses. The guidance also simplifies the application of the income tax guidance for franchise taxes that are partially based on income and the accounting for tax law changes during interim periods, clarifies the accounting for transactions that result in a step-up in tax basis of goodwill, provides for the option to elect allocation of consolidated income taxes to entities disregarded by taxing authorities for their stand-alone reporting, and requires that an entity reflect the effect of an enacted change in tax laws or rates in the annual effective tax rate computation in the interim period that includes the enactment date. January 1, 2021. The new guidance should be applied either on a retrospective, modified retrospective or prospective basis based on the items to which the amendments relate. Early adoption is permitted. The Company has started its implementation efforts and is currently evaluating the impact of the new guidance on its consolidated financial statements. ASU 2018-12, Financial Services—Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts, as amended by ASU 2019-09, Financial Services—Insurance (Topic 944): Effective Date The new guidance (i) prescribes the discount rate to be used in measuring the liability for future policy benefits for traditional and limited payment long-duration contracts, and requires assumptions for those liability valuations to be updated after contract inception, (ii) requires more market-based product guarantees on certain separate account and other account balance long-duration contracts to be accounted for at fair value, (iii) simplifies the amortization of deferred policy acquisition costs (“DAC”) for virtually all long-duration contracts, and (iv) introduces certain financial statement presentation requirements, as well as significant additional quantitative and qualitative disclosures. The amendments in ASU 2019-09 defer the effective date of the amendments in ASU 2018-12 for all entities. January 1, 2022, to be applied retrospectively to January 1, 2020 (with early adoption permitted). The implementation efforts of the Company and the evaluation of the impact of the new guidance are in progress. Given the nature and extent of the required changes to a significant portion of the Company’s operations, the adoption of this guidance is expected to have a material impact on its consolidated financial statements. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | 2. Segment Information MetLife is organized into five segments: U.S.; Asia; Latin America; EMEA; and MetLife Holdings. In addition, the Company reports certain of its results of operations in Corporate & Other. U.S. The U.S. segment offers a broad range of protection products and services aimed at serving the financial needs of customers throughout their lives. These products are sold to corporations and their respective employees, other institutions and their respective members, as well as individuals. The U.S. segment is organized into three businesses: Group Benefits, Retirement and Income Solutions (“RIS”) and Property & Casualty. • The Group Benefits business offers life, dental, group short- and long-term disability, individual disability, accidental death and dismemberment, vision and accident & health coverages, as well as prepaid legal plans. This business also sells administrative services-only arrangements to some employers. • The RIS business offers a broad range of life and annuity-based insurance and investment products, including stable value and pension risk transfer products, institutional income annuities, tort settlements, and capital markets investment products, as well as solutions for funding postretirement benefits and company-, bank- or trust-owned life insurance. • The Property & Casualty business offers personal lines of property and casualty insurance, including private passenger automobile, homeowners’ and personal excess liability insurance. Asia The Asia segment offers a broad range of products to both individuals and corporations, as well as to other institutions, and their respective employees, which include whole and term life, group life, endowments, universal and variable life, accident & health insurance and fixed and variable annuities. Latin America The Latin America segment offers a broad range of products to both individuals and corporations, as well as to other institutions, and their respective employees, which include life insurance, retirement and savings products, accident & health insurance and credit insurance. EMEA The EMEA segment offers a broad range of products to both individuals and corporations, as well as to other institutions, and their respective employees, which include life insurance, accident & health insurance, retirement and savings products and credit insurance. MetLife Holdings The MetLife Holdings segment consists of operations relating to products and businesses, previously included in MetLife’s former retail business, that the Company no longer actively markets in the United States, such as variable, universal, term and whole life insurance, variable, fixed and index-linked annuities, and long-term care insurance, as well as the assumed variable annuity guarantees from the Company’s former operating joint venture in Japan. Corporate & Other Corporate & Other contains various start-up, developing and run-off businesses. Also included in Corporate & Other are: the excess capital, as well as certain charges and activities, not allocated to the segments (including external integration and disposition costs, internal resource costs for associates committed to acquisitions and dispositions and enterprise-wide strategic initiative restructuring charges), interest expense related to the majority of the Company’s outstanding debt, expenses associated with certain legal proceedings and income tax audit issues, the elimination of intersegment amounts (which generally relate to affiliated reinsurance, investment expenses and intersegment loans, bearing interest rates commensurate with related borrowings), and the Company’s investment management business (through which the Company provides public fixed income, private capital and real estate investment solutions to institutional investors worldwide). Financial Measures and Segment Accounting Policies Adjusted earnings is used by management to evaluate performance and allocate resources. Consistent with GAAP guidance for segment reporting, adjusted earnings is also the Company’s GAAP measure of segment performance and is reported below. Adjusted earnings should not be viewed as a substitute for net income (loss). The Company believes the presentation of adjusted earnings, as the Company measures it for management purposes, enhances the understanding of its performance by highlighting the results of operations and the underlying profitability drivers of the business. Adjusted earnings is defined as adjusted revenues less adjusted expenses, net of income tax. The financial measures of adjusted revenues and adjusted expenses focus on the Company’s primary businesses principally by excluding the impact of market volatility, which could distort trends, and revenues and costs related to non-core products and certain entities required to be consolidated under GAAP. Also, these measures exclude results of discontinued operations under GAAP and other businesses that have been or will be sold or exited by MetLife but do not meet the discontinued operations criteria under GAAP and are referred to as divested businesses. Divested businesses also include the net impact of transactions with exited businesses that have been eliminated in consolidation under GAAP and costs relating to businesses that have been or will be sold or exited by MetLife that do not meet the criteria to be included in results of discontinued operations under GAAP. Adjusted revenues also excludes net investment gains (losses) and net derivative gains (losses). Adjusted expenses also excludes goodwill impairments. The following additional adjustments are made to revenues, in the line items indicated, in calculating adjusted revenues: • Universal life and investment-type product policy fees excludes the amortization of unearned revenue related to net investment gains (losses) and net derivative gains (losses) and certain variable annuity guaranteed minimum income benefits (“GMIBs”) fees (“GMIB fees”); • Net investment income: (i) includes adjustments for earned income on derivatives and amortization of premium on derivatives that are hedges of investments or that are used to replicate certain investments, but do not qualify for hedge accounting treatment, (ii) excludes post-tax adjusted earnings adjustments relating to insurance joint ventures accounted for under the equity method, (iii) excludes certain amounts related to contractholder-directed equity securities, (iv) excludes certain amounts related to securitization entities that are VIEs consolidated under GAAP and (v) includes distributions of profits from certain other limited partnership interests that were previously accounted for under the cost method, but are now accounted for at estimated fair value, where the change in estimated fair value is recognized in net investment gains (losses) under GAAP; and • Other revenues is adjusted for settlements of foreign currency earnings hedges and excludes fees received in association with services provided under transition service agreements (“TSA fees”). The following additional adjustments are made to expenses, in the line items indicated, in calculating adjusted expenses: • Policyholder benefits and claims and policyholder dividends excludes: (i) amortization of basis adjustments associated with de-designated fair value hedges of future policy benefits, (ii) changes in the policyholder dividend obligation related to net investment gains (losses) and net derivative gains (losses), (iii) inflation-indexed benefit adjustments associated with contracts backed by inflation-indexed investments and amounts associated with periodic crediting rate adjustments based on the total return of a contractually referenced pool of assets and other pass-through adjustments, (iv) benefits and hedging costs related to GMIBs (“GMIB costs”) and (v) market value adjustments associated with surrenders or terminations of contracts (“Market value adjustments”); • Interest credited to policyholder account balances includes adjustments for earned income on derivatives and amortization of premium on derivatives that are hedges of policyholder account balances but do not qualify for hedge accounting treatment and excludes certain amounts related to net investment income earned on contractholder-directed equity securities; • Amortization of DAC and value of business acquired (“VOBA”) excludes amounts related to: (i) net investment gains (losses) and net derivative gains (losses), (ii) GMIB fees and GMIB costs and (iii) Market value adjustments; • Amortization of negative VOBA excludes amounts related to Market value adjustments; • Interest expense on debt excludes certain amounts related to securitization entities that are VIEs consolidated under GAAP; and • Other expenses excludes: (i) noncontrolling interests, (ii) implementation of new insurance regulatory requirements costs and (iii) acquisition, integration and other costs. Other expenses includes TSA fees. Adjusted earnings also excludes the recognition of certain contingent assets and liabilities that could not be recognized at acquisition or adjusted for during the measurement period under GAAP business combination accounting guidance. The tax impact of the adjustments mentioned above are calculated net of the U.S. or foreign statutory tax rate, which could differ from the Company’s effective tax rate. Additionally, the provision for income tax (expense) benefit also includes the impact related to the timing of certain tax credits, as well as certain tax reforms. Set forth in the tables below is certain financial information with respect to the Company’s segments, as well as Corporate & Other, for the three months ended March 31, 2020 and 2019 . The segment accounting policies are the same as those used to prepare the Company’s consolidated financial statements, except for adjusted earnings adjustments as defined above. In addition, segment accounting policies include the method of capital allocation described below. Economic capital is an internally developed risk capital model, the purpose of which is to measure the risk in the business and to provide a basis upon which capital is deployed. The economic capital model accounts for the unique and specific nature of the risks inherent in the Company’s business. The Company’s economic capital model, coupled with considerations of local capital requirements, aligns segment allocated equity with emerging standards and consistent risk principles. The model applies statistics-based risk evaluation principles to the material risks to which the Company is exposed. These consistent risk principles include calibrating required economic capital shock factors to a specific confidence level and time horizon while applying an industry standard method for the inclusion of diversification benefits among risk types. The Company’s management is responsible for the ongoing production and enhancement of the economic capital model and reviews its approach periodically to ensure that it remains consistent with emerging industry practice standards. Segment net investment income is credited or charged based on the level of allocated equity; however, changes in allocated equity do not impact the Company’s consolidated net investment income, net income (loss), or adjusted earnings. Net investment income is based upon the actual results of each segment’s specifically identifiable investment portfolios adjusted for allocated equity. Other costs are allocated to each of the segments based upon: (i) a review of the nature of such costs, (ii) time studies analyzing the amount of employee compensation costs incurred by each segment, and (iii) cost estimates included in the Company’s product pricing. Three Months Ended March 31, 2020 U.S. Asia Latin EMEA MetLife Holdings Corporate & Other Total Adjustments Total (In millions) Revenues Premiums $ 5,674 $ 1,636 $ 640 $ 568 $ 904 $ 12 $ 9,434 $ 32 $ 9,466 Universal life and investment-type product policy fees 275 430 270 116 294 — 1,385 46 1,431 Net investment income 1,766 937 218 69 1,315 16 4,321 (1,260 ) 3,061 Other revenues 240 14 11 13 35 84 397 42 439 Net investment gains (losses) — — — — — — — (288 ) (288 ) Net derivative gains (losses) — — — — — — — 4,201 4,201 Total revenues 7,955 3,017 1,139 766 2,548 112 15,537 2,773 18,310 Expenses Policyholder benefits and claims and policyholder dividends 5,435 1,321 610 310 1,661 26 9,363 (49 ) 9,314 Interest credited to policyholder account balances 458 445 70 27 218 — 1,218 (1,138 ) 80 Capitalization of DAC (112 ) (421 ) (100 ) (130 ) (5 ) (3 ) (771 ) (3 ) (774 ) Amortization of DAC and VOBA 119 315 74 130 100 1 739 49 788 Amortization of negative VOBA — (8 ) — (2 ) — — (10 ) — (10 ) Interest expense on debt 2 — 1 — 2 217 222 — 222 Other expenses 1,066 874 345 332 228 136 2,981 66 3,047 Total expenses 6,968 2,526 1,000 667 2,204 377 13,742 (1,075 ) 12,667 Provision for income tax expense (benefit) 207 141 44 21 67 (166 ) 314 928 1,242 Adjusted earnings $ 780 $ 350 $ 95 $ 78 $ 277 $ (99 ) 1,481 Adjustments to: Total revenues 2,773 Total expenses 1,075 Provision for income tax (expense) benefit (928 ) Net income (loss) $ 4,401 $ 4,401 Three Months Ended March 31, 2019 U.S. Asia Latin America EMEA MetLife Holdings Corporate & Other Total Adjustments Total (In millions) Revenues Premiums $ 5,567 $ 1,699 $ 646 $ 542 $ 927 $ 24 $ 9,405 $ — $ 9,405 Universal life and investment-type product policy fees 270 406 284 103 274 1 1,338 27 1,365 Net investment income 1,719 880 296 74 1,287 25 4,281 627 4,908 Other revenues 221 16 12 14 67 94 424 70 494 Net investment gains (losses) — — — — — — — 15 15 Net derivative gains (losses) — — — — — — — 115 115 Total revenues 7,777 3,001 1,238 733 2,555 144 15,448 854 16,302 Expenses Policyholder benefits and claims and policyholder dividends 5,373 1,319 597 284 1,648 20 9,241 131 9,372 Interest credited to policyholder account balances 501 403 94 24 226 — 1,248 713 1,961 Capitalization of DAC (114 ) (479 ) (94 ) (117 ) (6 ) (2 ) (812 ) — (812 ) Amortization of DAC and VOBA 114 307 78 92 63 1 655 (31 ) 624 Amortization of negative VOBA — (9 ) — (1 ) — — (10 ) — (10 ) Interest expense on debt 2 — 1 — 2 229 234 — 234 Other expenses 993 955 366 338 227 222 3,101 88 3,189 Total expenses 6,869 2,496 1,042 620 2,160 470 13,657 901 14,558 Provision for income tax expense (benefit) 184 149 62 27 78 (165 ) 335 24 359 Adjusted earnings $ 724 $ 356 $ 134 $ 86 $ 317 $ (161 ) 1,456 Adjustments to: Total revenues 854 Total expenses (901 ) Provision for income tax (expense) benefit (24 ) Net income (loss) $ 1,385 $ 1,385 The following table presents total assets with respect to the Company’s segments, as well as Corporate & Other, at: March 31, 2020 December 31, 2019 (In millions) U.S. $ 273,341 $ 266,174 Asia 160,442 161,018 Latin America 61,526 75,069 EMEA 24,365 27,281 MetLife Holdings 172,347 175,199 Corporate & Other 45,720 35,722 Total $ 737,741 $ 740,463 |
Pending Disposition
Pending Disposition | 3 Months Ended |
Mar. 31, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Mergers, Acquisitions and Dispositions Disclosures [Text Block] | 3. Pending Disposition In June 2019, the Company entered into a definitive agreement to sell its two wholly-owned subsidiaries, MetLife Limited and Metropolitan Life Insurance Company of Hong Kong Limited (collectively, “MetLife Hong Kong”). MetLife Hong Kong’s results of operations are included in continuing operations. MetLife Hong Kong’s results of operations were reported in the Asia segment adjusted earnings through June 30, 2019. See Note 2 for information on divested businesses. The transaction is expected to close in 2020 and is subject to regulatory approvals and satisfaction of other closing conditions. |
Insurance
Insurance | 3 Months Ended |
Mar. 31, 2020 | |
Insurance [Abstract] | |
Insurance | 4. Insurance Guarantees As discussed in Notes 1 and 4 of the Notes to the Consolidated Financial Statements included in the 2019 Annual Report, the Company issues directly and assumes through reinsurance variable annuity products with guaranteed minimum benefits. Guaranteed minimum accumulation benefits (“GMABs”), the non-life contingent portion of guaranteed minimum withdrawal benefits (“GMWBs”) and certain non-life contingent portions of GMIBs are accounted for as embedded derivatives in policyholder account balances and are further discussed in Note 7 . The Company also issues other annuity contracts that apply a lower rate on funds deposited if the contractholder elects to surrender the contract for cash and a higher rate if the contractholder elects to annuitize. These guarantees include benefits that are payable in the event of death, maturity or at annuitization. Certain other annuity contracts contain guaranteed annuitization benefits that may be above what would be provided by the current account value of the contract. Additionally, the Company issues universal and variable life contracts where the Company contractually guarantees to the contractholder a secondary guarantee or a guaranteed paid-up benefit. Information regarding the Company’s guarantee exposure, which includes direct and assumed business, but excludes offsets from hedging or ceded reinsurance, if any, was as follows at: March 31, 2020 December 31, 2019 In the At In the At (Dollars in millions) Annuity Contracts: Variable Annuity Guarantees: Total account value (1), (2), (3) $ 55,583 $ 20,475 $ 64,506 $ 24,036 Separate account value (1) $ 34,167 $ 18,774 $ 41,305 $ 22,291 Net amount at risk (2) $ 4,009 (4 ) $ 1,131 (5 ) $ 1,572 (4 ) $ 584 (5 ) Average attained age of contractholders 67 years 66 years 67 years 65 years Other Annuity Guarantees: Total account value (1), (3) N/A $ 4,885 N/A $ 5,671 Net amount at risk N/A $ 388 (6 ) N/A $ 408 (6 ) Average attained age of contractholders N/A 51 years N/A 51 years March 31, 2020 December 31, 2019 Secondary Paid-Up Secondary Paid-Up (Dollars in millions) Universal and Variable Life Contracts: Total account value (1), (3) $ 10,994 $ 2,903 $ 11,937 $ 2,940 Net amount at risk (7) $ 84,436 $ 14,231 $ 86,221 $ 14,500 Average attained age of policyholders 54 years 65 years 53 years 65 years __________________ (1) The Company’s annuity and life contracts with guarantees may offer more than one type of guarantee in each contract. Therefore, the amounts listed above may not be mutually exclusive. (2) Includes amounts, which are not reported on the interim condensed consolidated balance sheets, from assumed variable annuity guarantees from the Company’s former operating joint venture in Japan. (3) Includes the contractholder’s investments in the general account and separate account, if applicable. (4) Defined as the death benefit less the total account value, as of the balance sheet date. It represents the amount of the claim that the Company would incur if death claims were filed on all contracts on the balance sheet date and includes any additional contractual claims associated with riders purchased to assist with covering income taxes payable upon death. (5) Defined as the amount (if any) that would be required to be added to the total account value to purchase a lifetime income stream, based on current annuity rates, equal to the minimum amount provided under the guaranteed benefit. This amount represents the Company’s potential economic exposure to such guarantees in the event all contractholders were to annuitize on the balance sheet date, even though the contracts contain terms that allow annuitization of the guaranteed amount only after the 10th anniversary of the contract, which not all contractholders have achieved. (6) Defined as either the excess of the upper tier, adjusted for a profit margin, less the lower tier, as of the balance sheet date or the amount (if any) that would be required to be added to the total account value to purchase a lifetime income stream, based on current annuity rates, equal to the minimum amount provided under the guaranteed benefit. These amounts represent the Company’s potential economic exposure to such guarantees in the event all contractholders were to annuitize on the balance sheet date. (7) Defined as the guarantee amount less the account value, as of the balance sheet date. It represents the amount of the claim that the Company would incur if death claims were filed on all contracts on the balance sheet date. Liabilities for Unpaid Claims and Claim Expenses Rollforward of Claims and Claim Adjustment Expenses Information regarding the liabilities for unpaid claims and claim adjustment expenses was as follows: Three Months 2020 2019 (In millions) Balance, beginning of period $ 19,216 $ 17,788 Less: Reinsurance recoverables 2,377 2,332 Net balance, beginning of period 16,839 15,456 Incurred related to: Current period 6,455 6,338 Prior periods (1) 113 210 Total incurred 6,568 6,548 Paid related to: Current period (3,523 ) (3,430 ) Prior periods (3,160 ) (2,814 ) Total paid (6,683 ) (6,244 ) Net balance, end of period 16,724 15,760 Add: Reinsurance recoverables 2,461 2,354 Balance, end of period (included in future policy benefits and other policy-related balances) $ 19,185 $ 18,114 __________________ (1) For both the three months ended March 31, 2020 and 2019 , claims and claim adjustment expenses associated with prior periods increased due to events incurred in prior periods but reported in the current period. |
Closed Block
Closed Block | 3 Months Ended |
Mar. 31, 2020 | |
Closed Block Disclosure [Abstract] | |
Closed Block | 5. Closed Block On April 7, 2000 (the “Demutualization Date”), Metropolitan Life Insurance Company (“MLIC”) converted from a mutual life insurance company to a stock life insurance company and became a wholly-owned subsidiary of MetLife, Inc. The conversion was pursuant to an order by the New York Superintendent of Insurance approving MLIC’s plan of reorganization, as amended (the “Plan of Reorganization”). On the Demutualization Date, MLIC established a closed block for the benefit of holders of certain individual life insurance policies of MLIC. Experience within the closed block, in particular mortality and investment yields, as well as realized and unrealized gains and losses, directly impact the policyholder dividend obligation. Amortization of the closed block DAC, which resides outside of the closed block, is based upon cumulative actual and expected earnings within the closed block. Accordingly, the Company’s net income continues to be sensitive to the actual performance of the closed block. Closed block assets, liabilities, revenues and expenses are combined on a line-by-line basis with the assets, liabilities, revenues and expenses outside the closed block based on the nature of the particular item. Information regarding the closed block liabilities and assets designated to the closed block was as follows at: March 31, 2020 December 31, 2019 (In millions) Closed Block Liabilities Future policy benefits $ 39,214 $ 39,379 Other policy-related balances 340 423 Policyholder dividends payable 431 432 Policyholder dividend obligation 1,677 2,020 Deferred income tax liability 82 79 Other liabilities 169 81 Total closed block liabilities 41,913 42,414 Assets Designated to the Closed Block Investments: Fixed maturity securities available-for-sale, at estimated fair value 25,332 25,977 Equity securities, at estimated fair value 44 49 Contractholder-directed equity securities and fair value option securities, at estimated fair value 46 53 Mortgage loans 6,995 7,052 Policy loans 4,478 4,489 Real estate and real estate joint ventures 556 544 Other invested assets 844 314 Total investments 38,295 38,478 Cash and cash equivalents 148 448 Accrued investment income 427 419 Premiums, reinsurance and other receivables 67 75 Current income tax recoverable 90 91 Total assets designated to the closed block 39,027 39,511 Excess of closed block liabilities over assets designated to the closed block 2,886 2,903 AOCI: Unrealized investment gains (losses), net of income tax 2,008 2,453 Unrealized gains (losses) on derivatives, net of income tax 314 97 Allocated to policyholder dividend obligation, net of income tax (1,325 ) (1,596 ) Total amounts included in AOCI 997 954 Maximum future earnings to be recognized from closed block assets and liabilities $ 3,883 $ 3,857 Information regarding the closed block policyholder dividend obligation was as follows: Three Months Year (In millions) Balance, beginning of period $ 2,020 $ 428 Change in unrealized investment and derivative gains (losses) (343 ) 1,592 Balance, end of period $ 1,677 $ 2,020 Information regarding the closed block revenues and expenses was as follows: Three Months 2020 2019 (In millions) Revenues Premiums $ 367 $ 367 Net investment income 407 428 Net investment gains (losses) (19 ) (1 ) Net derivative gains (losses) 26 3 Total revenues 781 797 Expenses Policyholder benefits and claims 550 539 Policyholder dividends 219 228 Other expenses 27 29 Total expenses 796 796 Revenues, net of expenses before provision for income tax expense (benefit) (15 ) 1 Provision for income tax expense (benefit) (3 ) — Revenues, net of expenses and provision for income tax expense (benefit) $ (12 ) $ 1 MLIC charges the closed block with federal income taxes, state and local premium taxes and other state or local taxes, as well as investment management expenses relating to the closed block as provided in the Plan of Reorganization. MLIC also charges the closed block for expenses of maintaining the policies included in the closed block. |
Investments
Investments | 3 Months Ended |
Mar. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | 6. Investments Fixed Maturity Securities Available-for-Sale Fixed Maturity Securities Available-for-Sale by Sector The following table presents the fixed maturity securities AFS by sector. U.S. corporate and foreign corporate sectors include redeemable preferred stock. Residential mortgage-backed securities (“RMBS”) includes agency, prime, alternative and sub-prime mortgage-backed securities. Asset-backed securities (“ABS”) includes securities collateralized by corporate loans and consumer loans. Municipals includes taxable and tax-exempt revenue bonds and, to a much lesser extent, general obligations of states, municipalities and political subdivisions. Commercial mortgage-backed securities (“CMBS”) primarily includes securities collateralized by multiple commercial mortgage loans. RMBS, ABS and CMBS are collectively, “Structured Products.” In accordance with new guidance adopted January 1, 2020 regarding expected credit loss, securities that incurred a credit loss after December 31, 2019 and were still held as of March 31, 2020, are presented net of ACL. In accordance with previous guidance, both the temporary loss and OTTI loss are presented for securities that were in an unrealized loss position as of December 31, 2019. March 31, 2020 December 31, 2019 Amortized ACL Gross Unrealized Estimated Amortized Gross Unrealized Estimated Losses Temporary OTTI (In millions) U.S. corporate $ 80,287 $ (51 ) $ 7,151 $ 2,316 $ 85,071 $ 79,115 $ 8,943 $ 305 $ — $ 87,753 Foreign government 57,737 (136 ) 7,816 573 64,844 58,840 8,710 321 — 67,229 Foreign corporate 58,679 — 3,281 2,765 59,195 59,342 5,540 717 — 64,165 U.S. government and agency 38,181 — 9,787 9 47,959 37,586 4,604 106 — 42,084 RMBS 29,242 — 1,636 409 30,469 27,051 1,535 72 (33 ) 28,547 ABS 15,870 — 48 1,080 14,838 14,547 83 88 — 14,542 Municipals 11,877 — 2,054 60 13,871 11,081 2,001 29 — 13,053 CMBS 10,751 — 232 545 10,438 10,093 396 42 — 10,447 Total fixed maturity securities AFS $ 302,624 $ (187 ) $ 32,005 $ 7,757 $ 326,685 $ 297,655 $ 31,812 $ 1,680 $ (33 ) $ 327,820 __________________ (1) Noncredit OTTI losses included in AOCI in an unrealized gain position are due to increases in estimated fair value subsequent to initial recognition of noncredit loss on such securities. See also “— Net Unrealized Investment Gains (Losses).” Maturities of Fixed Maturity Securities AFS The amortized cost, net of ACL and estimated fair value of fixed maturity securities AFS, by contractual maturity date, were as follows at March 31, 2020 : Due in One Due After Due After Five Years Through Ten Years Due After Ten Years Structured Products Total Fixed Maturity Securities AFS (In millions) Amortized cost, net of ACL $ 16,862 $ 47,867 $ 57,679 $ 124,166 $ 55,863 $ 302,437 Estimated fair value $ 17,061 $ 48,490 $ 60,624 $ 144,765 $ 55,745 $ 326,685 Actual maturities may differ from contractual maturities due to the exercise of call or prepayment options. Fixed maturity securities AFS not due at a single maturity date have been presented in the year of final contractual maturity. Structured Products are shown separately, as they are not due at a single maturity. Continuous Gross Unrealized Losses for Fixed Maturity Securities AFS by Sector The following table presents the estimated fair value and gross unrealized losses of fixed maturity securities AFS in an unrealized loss position by sector and aggregated by length of time that the securities have been in a continuous unrealized loss position. Included in the table below are securities without an ACL as of March 31, 2020, in accordance with new guidance adopted January 1, 2020. Also included in the table below are all securities in an unrealized loss position as of December 31, 2019, in accordance with previous guidance. March 31, 2020 December 31, 2019 Less than 12 Months Equal to or Greater than 12 Months Less than 12 Months Equal to or Greater than 12 Months Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses (Dollars in millions) U.S. corporate $ 22,055 $ 2,136 $ 655 $ 174 $ 3,817 $ 107 $ 2,226 $ 198 Foreign government 5,813 335 1,347 194 3,295 149 1,490 172 Foreign corporate 21,922 2,401 2,103 364 3,188 133 5,873 584 U.S. government and agency 1,103 8 37 — 5,391 97 196 9 RMBS 5,617 390 227 20 2,341 25 584 14 ABS 9,866 757 2,995 323 3,692 22 4,843 66 Municipals 1,351 60 1 — 1,156 29 1 — CMBS 4,693 485 384 60 1,926 16 487 26 Total fixed maturity securities AFS $ 72,420 $ 6,572 $ 7,749 $ 1,135 $ 24,806 $ 578 $ 15,700 $ 1,069 Investment grade $ 63,072 $ 5,080 $ 6,970 $ 919 $ 22,838 $ 437 $ 13,813 $ 821 Below investment grade 9,348 1,492 779 216 1,968 141 1,887 248 Total fixed maturity securities AFS $ 72,420 $ 6,572 $ 7,749 $ 1,135 $ 24,806 $ 578 $ 15,700 $ 1,069 Total number of securities in an unrealized loss position 6,667 947 2,153 1,411 Evaluation of Fixed Maturity Securities AFS for Credit Loss Evaluation and Measurement Methodologies Management considers a wide range of factors about the security issuer and uses its best judgment in evaluating the cause of the decline in the estimated fair value of the security and in assessing the prospects for near-term recovery. Inherent in management’s evaluation of the security are assumptions and estimates about the operations of the issuer and its future earnings potential. Considerations used in the credit loss evaluation process include, but are not limited to: (i) the extent to which the estimated fair value has been below amortized cost, (ii) adverse conditions specifically related to a security, an industry sector or sub-sector, or an economically depressed geographic area, adverse change in the financial condition of the issuer of the security, changes in technology, discontinuance of a segment of the business that may affect future earnings, and changes in the quality of credit enhancement, (iii) payment structure of the security and likelihood of the issuer being able to make payments, (iv) failure of the issuer to make scheduled interest and principal payments, (v) the issuer, or series of issuers or an industry has suffered a catastrophic loss or has exhausted natural resources, (vi) whether the Company has the intent to sell or will more likely than not be required to sell a particular security before the decline in estimated fair value below amortized cost recovers, (vii) with respect to Structured Products, changes in forecasted cash flows after considering the changes in the financial condition of the underlying loan obligors and quality of underlying collateral, expected prepayment speeds, current and forecasted loss severity, consideration of the payment terms of the underlying assets backing a particular security, and the payment priority within the tranche structure of the security, (viii) changes in the rating of the security by a rating agency, and (ix) other subjective factors, including concentrations and information obtained from regulators. The methodology and significant inputs used to determine the amount of credit loss are as follows: • The Company calculates the recovery value by performing a discounted cash flow analysis based on the present value of future cash flows. The discount rate is generally the effective interest rate of the security at the time of purchase for fixed-rate securities and the spot rate at the date of evaluation of credit loss for floating-rate securities. • When determining collectability and the period over which value is expected to recover, the Company applies considerations utilized in its overall credit loss evaluation process which incorporates information regarding the specific security, fundamentals of the industry and geographic area in which the security issuer operates, and overall macroeconomic conditions. Projected future cash flows are estimated using assumptions derived from management’s single best estimate, the most likely outcome in a range of possible outcomes, after giving consideration to a variety of variables that include, but are not limited to: payment terms of the security; the likelihood that the issuer can service the interest and principal payments; the quality and amount of any credit enhancements; the security’s position within the capital structure of the issuer; possible corporate restructurings or asset sales by the issuer; any private and public sector programs to restructure foreign government securities and municipals; and changes to the rating of the security or the issuer by rating agencies. • Additional considerations are made when assessing the unique features that apply to certain Structured Products including, but not limited to: the quality of underlying collateral, historical performance of the underlying loan obligors, historical rent and vacancy levels, changes in the financial condition of the underlying loan obligors, expected prepayment speeds, current and forecasted loss severity, consideration of the payment terms of the underlying loans or assets backing a particular security, changes in the quality of credit enhancement and the payment priority within the tranche structure of the security. With respect to securities that have attributes of debt and equity (“perpetual hybrid securities”), consideration is given in the credit loss analysis as to whether there has been any deterioration in the credit of the issuer and the likelihood of recovery in value of the securities that are in a severe unrealized loss position. Consideration is also given as to whether any perpetual hybrid securities with an unrealized loss, regardless of credit rating, have deferred any dividend payments. After the adoption of new guidance on January 1, 2020, in periods subsequent to the recognition of an initial ACL on a security, the Company reassesses credit loss quarterly. Subsequent increases or decreases in the expected cash flow from the security result in corresponding decreases or increases in the ACL which are recorded within net investment gains (losses); however, the previously recorded ACL is not reduced to an amount below zero. Full or partial write-offs are deducted from the ACL in the period the security, or a portion, is considered uncollectible. Recoveries of amounts previously written off are recorded to the ACL in the period received. When the Company has the intent to sell the security or it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost, any ACL is written off and the amortized cost is written down to estimated fair value through a charge within net investment gains (losses), which becomes the new amortized cost of the security. In accordance with the previous guidance, methodologies to evaluate the recoverability of a security in an unrealized loss position were similar, except: (i) the length of time estimated fair value had been below amortized cost was considered for securities, and (ii) for non-functional currency denominated securities, the impact from weakening non-functional currencies on securities that were near maturity was considered in the evaluation. In addition, measurement methodologies were similar, except: (i) a fair value floor was not utilized to limit the credit loss recognized, (ii) the amortized cost of securities was adjusted for the OTTI to the expected recoverable amount and an ACL was not utilized, (iii) subsequent to a credit loss being recognized, increases in expected cash flows from the security did not result in an immediate increase in valuation recognized in earnings through net investment gains (losses) from reduction of the ACL instead such increases in value were recorded as unrealized gains in OCI, and (iv) in periods subsequent to the recognition of OTTI on a security, the Company accounted for the impaired security as if it had been purchased on the measurement date of the impairment; accordingly, the discount (or reduced premium) based on the new cost basis was accreted over the remaining term of the security in a prospective manner based on the amount and timing of estimated future cash flows. Evaluation of Fixed Maturity Securities AFS in an Unrealized Loss Position Gross unrealized losses on securities without an ACL increased $6.1 billion for the three months ended March 31, 2020 to $7.7 billion . The increase in gross unrealized losses for the three months ended March 31, 2020 was primarily attributable to widening credit spreads and movement in foreign currency exchange rates, partially offset by decreases in interest rates. Gross unrealized losses on securities without an ACL that have been in a continuous gross unrealized loss position for 12 months or greater were $1.1 billion at March 31, 2020 , or 15% of the total gross unrealized losses on securities without an ACL. Investment Grade Fixed Maturity Securities AFS Of the $1.1 billion of gross unrealized losses on securities without an ACL that have been in a continuous gross unrealized loss position for 12 months or greater, $919 million , or 81% , were related to 757 investment grade securities. Unrealized losses on investment grade securities are principally related to widening credit spreads since purchase and, with respect to fixed-rate securities, rising interest rates since purchase. Below Investment Grade Fixed Maturity Securities AFS Of the $1.1 billion of gross unrealized losses on securities without an ACL that have been in a continuous gross unrealized loss position for 12 months or greater, $216 million , or 19% , were related to 190 below investment grade securities. Unrealized losses on below investment grade securities are principally related to U.S. and foreign corporate securities (primarily industrial and consumer), foreign government securities and ABS and are the result of significantly wider credit spreads resulting from higher risk premiums since purchase, largely due to economic and market uncertainty, as well as with respect to fixed-rate securities, rising interest rates since purchase. Management evaluates U.S. corporate and foreign corporate securities based on factors such as expected cash flows, financial condition and near-term and long-term prospects of the issuers. Management evaluates foreign government securities based on factors impacting the issuers such as expected cash flows, financial condition of the issuers and any country-specific economic conditions or public sector programs to restructure foreign government securities. Management evaluates ABS based on actual and projected cash flows after considering the quality of underlying collateral, credit enhancements, expected prepayment speeds, current and forecasted loss severity, the payment terms of the underlying assets backing a particular security and the payment priority within the tranche structure of the security. Current Period Evaluation At March 31, 2020, with respect to securities in an unrealized loss position, the Company does not intend to sell these securities, and it was not more likely than not that the Company would be required to sell these securities before the anticipated recovery of the remaining amortized cost. Based on the Company’s current evaluation of its securities in an unrealized loss position without an ACL, the Company concluded that these securities had not incurred a credit loss and should not have an ACL at March 31, 2020. Future provisions for credit loss will depend primarily on economic fundamentals, issuer performance (including changes in the present value of future cash flows expected to be collected), and changes in credit ratings and collateral valuation. Rollforward of Allowance for Credit Loss for Fixed Maturity Securities AFS By Sector The rollforward of ACL for fixed maturity securities AFS by sector is as follows: U.S. Corporate Foreign Government Total (In millions) Three Months Ended March 31, 2020 Balance, beginning of period $ — $ — $ — Additions: Securities for which credit loss was not previously recorded (51 ) (136 ) (187 ) Balance, end of period $ (51 ) $ (136 ) $ (187 ) Equity Securities Equity securities are summarized as follows at: March 31, 2020 December 31, 2019 Estimated Fair Value % of Total Estimated Fair Value % of Total (Dollars in millions) Common stock $ 682 65.0 % $ 944 70.3 % Non-redeemable preferred stock 368 35.0 398 29.7 Total equity securities $ 1,050 100.0 % $ 1,342 100.0 % Contractholder-Directed Equity Securities and Fair Value Option Securities As described more fully in Note 1 of the Notes to the Consolidated Financial Statements included in the 2019 Annual Report, contractholder-directed equity securities and FVO securities (“FVO Securities”) (collectively, “Unit-linked and FVO Securities”) include three categories of investments for which the FVO has been elected, or are otherwise required to be carried at estimated fair value. Mortgage Loans by Portfolio Segment Mortgage loans are summarized as follows at: March 31, 2020 December 31, 2019 Carrying Value % of Carrying Value % of (Dollars in millions) Mortgage loans: Commercial $ 50,077 61.6 % $ 49,624 61.6 % Agricultural 16,788 20.6 16,695 20.7 Residential 14,763 18.2 14,316 17.8 Total amortized cost 81,628 100.4 80,635 100.1 Allowance for credit loss (464 ) (0.6 ) (353 ) (0.4 ) Subtotal mortgage loans, net 81,164 99.8 80,282 99.7 Residential — FVO 180 0.2 188 0.2 Total mortgage loans held-for-investment, net $ 81,344 100.0 % $ 80,470 99.9 % Mortgage loans held-for-sale — — 59 0.1 Total mortgage loans, net $ 81,344 100.0 % $ 80,529 100.0 % Information on commercial, agricultural, and residential mortgage loans is presented in the tables below. Information on residential mortgage loans - FVO is presented in Note 8 . The Company elects the FVO for certain residential mortgage loans that are managed on a total return basis. The amount of net discounts, included within total amortized cost, primarily attributable to residential mortgage loans was $883 million and $867 million at March 31, 2020 and December 31, 2019 , respectively. The accrued interest income excluded from total amortized cost for commercial, agricultural and residential mortgage loans at March 31, 2020 and December 31, 2019 was $187 million and $188 million ; $157 million and $186 million ; and $91 million and $94 million , respectively. Purchases of mortgage loans, primarily residential, were $1.3 billion and $1.4 billion for the three months ended March 31, 2020 and 2019 , respectively. Allowance for Credit Loss Rollforward by Portfolio Segment The changes in the ACL, by portfolio segment, were as follows: Three Months 2020 2019 Commercial Agricultural Residential Total Commercial Agricultural Residential Total (In millions) Balance, beginning of period $ 246 $ 52 $ 55 $ 353 $ 238 $ 46 $ 58 $ 342 Adoption of new credit loss guidance (118 ) 35 161 78 — — — — Provision (release) 15 (3 ) 24 36 7 1 2 10 Charge-offs, net of recoveries — — (3 ) (3 ) — — (2 ) (2 ) Balance, end of period $ 143 $ 84 $ 237 $ 464 $ 245 $ 47 $ 58 $ 350 Allowance for Credit Loss Methodology After the adoption of new guidance on January 1, 2020, the Company records an allowance for expected credit loss in an amount that represents the portion of the amortized cost basis of mortgage loans that the Company does not expect to collect, resulting in mortgage loans being presented at the net amount expected to be collected. In determining the Company’s ACL, management: (i) pools mortgage loans that share similar risk characteristics, (ii) considers lifetime credit loss expected over the contractual term of its mortgage loans adjusted for expected prepayments and any extensions, and (iii) considers past events, current economic conditions and forecasts of future economic conditions. Each of the Company’s commercial, agricultural and residential mortgage loan portfolio segments are evaluated separately. The ACL is calculated for each mortgage loan portfolio segment based on inputs unique to each loan portfolio segment. On a quarterly basis, mortgage loans within a portfolio segment that share similar risk characteristics, such as internal risk ratings or consumer credit scores, are pooled for calculation of ACL. On an ongoing basis, mortgage loans with dissimilar risk characteristics (i.e., loans with significant declines in credit quality), collateral dependent mortgage loans (i.e., when the borrower is experiencing financial difficulty, including when foreclosure is reasonable possible or probable) and reasonably expected troubled debt restructurings (i.e., the Company grants concessions to borrower that is experiencing financial difficulties) are evaluated individually for credit loss. The ACL for loans evaluated individually are established using the same methodologies for all three portfolio segments. For example, the ACL for a collateral dependent loan is established as the excess of amortized cost over the estimated fair value of the loan’s underlying collateral, less selling cost when foreclosure is probable. Accordingly, the change in the estimated fair value of collateral dependent loans, which are evaluated individually for credit loss, is recorded as a change in the ACL which is recorded on a quarterly basis as a charge or credit to earnings in net investment gains (losses). In accordance with the previous guidance, evaluation and measurement methodologies in determining the ACL were similar, except: (i) credit loss was recognized when incurred (when it was probable, based on current information and events, that all amounts due under the loan agreement would not be collected), (ii) pooling of loans with similar risk characteristics was permitted, but not required, (iii) forecasts of future economic conditions were not considered in the evaluation, (iv) measurement of the expected credit loss over the contractual term, or expected term, was not considered in the measurement, and (v) the credit loss for loans evaluated individually could also be determined using either discounted cash flows using the loans original effective interest rate or observable market prices. Commercial and Agricultural Mortgage Loan Portfolio Segments Commercial and agricultural mortgage loan ACL are calculated in a similar manner. Within each loan portfolio segment, commercial and agricultural, loans are pooled by internal risk rating. Estimated lifetime loss rates, which vary by internal risk rating, are applied to the amortized cost of each loan, excluding accrued investment income, on a quarterly basis to develop the ACL. Internal risk ratings are based on an assessment of the loan’s credit quality, which can change over time. The estimated lifetime loss rates are based on several loan portfolio segment-specific factors, including (i) the Company’s experience with defaults and loss severity, (ii) expected default and loss severity over the forecast period, (iii) current and forecasted economic conditions including growth, inflation, interest rates and unemployment levels, (iv) loan specific characteristics including loan-to-value ratios, and (v) internal risk ratings. These evaluations are revised as conditions change and new information becomes available. The Company uses its several decades of historical default and loss severity experience which capture multiple economic cycles. The Company uses a forecast of economic assumptions for a two-year period for most of its commercial and agricultural mortgage loans, while a one-year period is used for loans originated in certain markets. After the applicable forecast period, the Company reverts to its historical loss experience using a straight-line basis over two years. For evaluations of commercial mortgage loans, in addition to historical experience, management considers factors that include the impact of a rapid change to the economy, which may not be reflected in the loan portfolio, recent loss and recovery trend experience as compared to historical loss and recovery experience, and loan specific characteristics including debt service coverage ratios. In estimating lifetime credit loss expected over the term of its commercial mortgage loans, the Company adjusts for expected prepayment and extension experience during the forecast period using historical prepayment and extension experience considering the expected position in the economic cycle and the loan profile (i.e., floating rate, shorter-term fixed rate and longer-term fixed rate) and after the forecast period using long-term historical prepayment experience. For evaluations of agricultural mortgage loans, in addition to historical experience, management considers factors that include increased stress in certain sectors, which may be evidenced by higher delinquency rates, or a change in the number of higher risk loans. In estimating lifetime credit loss expected over the term of its agricultural mortgage loans, the Company’s experience is much less sensitive to the position in the economic cycle and by loan profile, accordingly historical prepayment experience is used, while extension terms are not prevalent with the Company’s agricultural mortgage loans. Commercial mortgage loans are reviewed on an ongoing basis, which review includes, but is not limited to, an analysis of the property financial statements and rent roll, lease rollover analysis, property inspections, market analysis, estimated valuations of the underlying collateral, loan-to-value ratios, debt service coverage ratios and tenant creditworthiness. The monitoring process focuses on higher risk loans, which include those that are classified as restructured, delinquent or in foreclosure, as well as loans with higher loan-to-value ratios and lower debt service coverage ratios. Agricultural mortgage loans are reviewed on an ongoing basis, which review includes, but is not limited to, property inspections, market analysis, estimated valuations of the underlying collateral, loan-to-value ratios and borrower creditworthiness, as well as reviews on a geographic and property-type basis. The monitoring process for agricultural mortgage loans also focuses on higher risk loans. For commercial mortgage loans, the primary credit quality indicator is the debt service coverage ratio, which compares a property’s net operating income to amounts needed to service the principal and interest due under the loan. Generally, the lower the debt service coverage ratio, the higher the risk of experiencing a credit loss. The Company also reviews the loan-to-value ratio of its commercial mortgage loan portfolio. Loan-to-value ratios compare the unpaid principal balance of the loan to the estimated fair value of the underlying collateral. Generally, the higher the loan-to-value ratio, the higher the risk of experiencing a credit loss. The debt service coverage ratio and the values utilized in calculating the ratio are updated routinely. In addition, the loan-to-value ratio is routinely updated for all but the lowest risk loans as part of the Company’s ongoing review of its commercial mortgage loan portfolio. For agricultural mortgage loans, the Company’s primary credit quality indicator is the loan-to-value ratio. The values utilized in calculating this ratio are developed in connection with the ongoing review of the agricultural mortgage loan portfolio and are routinely updated. Commitments to lend: After loans are approved, the Company makes commitments to lend and, typically, borrowers draw down on some or all of the commitments. The timing of mortgage loan funding is based on the commitment expiration dates. A liability for expected credit loss for unfunded commercial and agricultural mortgage loan commitments is recorded within net investment gains (losses). The liability is based on estimated lifetime loss rates as described above and the amount of the outstanding commitments, which for lines of credit, considers estimated utilization rates. When the commitment is funded or expires, the liability is adjusted accordingly. Residential Mortgage Loan Portfolio Segment The Company’s residential mortgage loan portfolio is comprised primarily of purchased closed end, amortizing residential mortgage loans, including both performing loans purchased within 12 months of origination and reperforming loans purchased after they have been performing for at least 12 months post-modification. Residential mortgage loans are pooled by loan type (i.e., new origination and reperforming) and pooled by similar risk profiles (including consumer credit score and loan-to-value ratios). Estimated lifetime loss rates, which vary by loan type and risk profile, are applied to the amortized cost of each loan excluding accrued investment income on a quarterly basis to develop the ACL. The estimated lifetime loss rates are based on several factors, including (i) industry historical experience and expected results over the forecast period for defaults, (ii) loss severity, (iii) prepayment rates, (iv) current and forecasted economic conditions including growth, inflation, interest rates and unemployment levels, and (v) loan pool specific characteristics including consumer credit scores, loan-to-value ratios, payment history and home prices. These evaluations are revised as conditions change and new information becomes available. The Company uses industry historical experience which captures multiple economic cycles as the Company has purchased most of its residential mortgage loans in the last five years. The Company uses a forecast of economic assumptions for a two-year period for most of its residential mortgage loans. After the applicable forecast period, the Company immediately reverts to industry historical loss experience. For residential mortgage loans, the Company’s primary credit quality indicator is whether the loan is performing or nonperforming. The Company generally defines nonperforming residential mortgage loans as those that are 60 or more days past due and/or in nonaccrual status which is assessed monthly. Generally, nonperforming residential mortgage loans have a higher risk of experiencing a credit loss. Credit Quality of Mortgage Loans by Portfolio Segment The amortized cost of commercial mortgage loans by credit quality indicator and vintage year was as follows at March 31, 2020 : 2020 2019 2018 2017 2016 Prior Revolving Loans Total % of Total (Dollars in millions) Loan-to-value ratios: Less than 65% $ 1,276 $ 6,618 $ 7,108 $ 5,291 $ 5,431 $ 12,384 $ 2,886 $ 40,994 81.8 % 65% to 75% 446 2,455 1,631 959 884 1,218 — 7,593 15.2 76% to 80% — — 19 336 131 369 — 855 1.7 Greater than 80% — — — 401 58 176 — 635 1.3 Total $ 1,722 $ 9,073 $ 8,758 $ 6,987 $ 6,504 $ 14,147 $ 2,886 $ 50,077 100.0 % Debt service coverage ratios: > 1.20x $ 1,619 $ 8,668 $ 8,357 $ 6,535 $ 6,144 $ 13,235 $ 2,886 $ 47,444 94.8 % 1.00x - 1.20x — — 95 80 321 817 — 1,313 2.6 <1.00x 103 405 306 372 39 95 — 1,320 2.6 Total $ 1,722 $ 9,073 $ 8,758 $ 6,987 $ 6,504 $ 14,147 $ 2,886 $ 50,077 100.0 % The amortized cost of agricultural mortgage loans by credit quality indicator and vintage year was as follows at March 31, 2020 : 2020 2019 2018 2017 2016 Prior Revolving Loans Total % of Total (Dollars in millions) Loan-to-value ratios: Less than 65% $ 522 $ 2,419 $ 3,131 $ 1,118 $ 2,898 $ 5,068 $ 853 $ 16,009 95.4 % 65% to 75% 39 192 113 95 27 241 11 718 4.3 76% to 80% — — 11 — — 6 2 19 0.1 Greater than 80% — — — — — 42 — 42 0.2 Total $ 561 $ 2,611 $ 3,255 $ 1,213 $ 2,925 $ 5,357 $ 866 $ 16,788 100.0 % The amortized cost of residential mortgage loans by credit quality indicator and vintage year was as follows at March 31, 2020 : 2020 2019 2018 2017 2016 Prior Revolving Loans Total % of Total (Dollars in millions) Performance indicators: Performing $ 249 $ 3,084 $ 1,479 $ 510 $ 268 $ 8,766 $ — $ 14,356 97.2 % Nonperforming (1) — 9 9 5 7 377 — 407 2.8 Total $ 249 $ 3,093 $ 1,488 $ 515 $ 275 $ 9,143 $ — $ 14,763 100.0 % __________________ (1) Includes residential mortgage loans in process of foreclosure of $119 million a nd $118 million at March 31, 2020 and December 31, 2019 , respectively. Past Due and Nonaccrual Mortgage Loans The Company has a high quality, well performing mortgage loan portfolio, with over 99% of all mortgage loans classified as performing at both March 31, 2020 and December 31, 2019 . The Company defines delinquency consistent with industry practice, when mortgage loans are past due more than two or more months, as applicable, by portfolio segment. The past due and nonaccrual mortgage loans at amortized cost, prior to ACL, by portfolio segment, were as follows at: Past Due Greater than 90 Days Past Due and Still Accruing Interest Nonaccrual March 31, 2020 Decembe |
Derivatives
Derivatives | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | 7. Derivatives Accounting for Derivatives Freestanding Derivatives Freestanding derivatives are carried on the Company’s balance sheet either as assets within other invested assets or as liabilities within other liabilities at estimated fair value. The Company does not offset the estimated fair value amounts recognized for derivatives executed with the same counterparty under the same master netting agreement. Accruals on derivatives are generally recorded in accrued investment income or within other liabilities. However, accruals that are not scheduled to settle within one year are included with the derivative’s carrying value in other invested assets or other liabilities. If a derivative is not designated as an accounting hedge or its use in managing risk does not qualify for hedge accounting, changes in the estimated fair value of the derivative are reported in net derivative gains (losses) except as follows: Statement of Operations Presentation: Derivative: Policyholder benefits and claims • Economic hedges of variable annuity guarantees included in future policy benefits Net investment income • Economic hedges of equity method investments in joint ventures • Derivatives held within Unit-linked investments Hedge Accounting To qualify for hedge accounting, at the inception of the hedging relationship, the Company formally documents its risk management objective and strategy for undertaking the hedging transaction, as well as its designation of the hedge. Hedge designation and financial statement presentation of changes in estimated fair value of the hedging derivatives are as follows: • Fair value hedge - a hedge of the estimated fair value of a recognized asset or liability - in the same line item as the earnings effect of the hedged item. The carrying value of the hedged recognized asset or liability is adjusted for changes in its estimated fair value due to the hedged risk. • Cash flow hedge - a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability - in OCI and reclassified into the statement of operations when the Company’s earnings are affected by the variability in cash flows of the hedged item. • Net investment in a foreign operation (“NIFO”) hedge - in OCI, consistent with the translation adjustment for the hedged net investment in the foreign operation. The changes in estimated fair values of the hedging derivatives are exclusive of any accruals that are separately reported on the statement of operations within interest income or interest expense to match the location of the hedged item. Accruals on derivatives in net investment hedges are recognized in OCI. In its hedge documentation, the Company sets forth how the hedging instrument is expected to hedge the designated risks related to the hedged item and sets forth the method that will be used to retrospectively and prospectively assess the hedging instrument’s effectiveness. A derivative designated as a hedging instrument must be assessed as being highly effective in offsetting the designated risk of the hedged item. Hedge effectiveness is formally assessed at inception and at least quarterly throughout the life of the designated hedging relationship. Assessments of hedge effectiveness are also subject to interpretation and estimation and different interpretations or estimates may have a material effect on the amount reported in net income. The Company discontinues hedge accounting prospectively when: (i) it is determined that the derivative is no longer highly effective in offsetting changes in the estimated fair value or cash flows of a hedged item, (ii) the derivative expires, is sold, terminated, or exercised, (iii) it is no longer probable that the hedged forecasted transaction will occur, or (iv) the derivative is de-designated as a hedging instrument. When hedge accounting is discontinued because it is determined that the derivative is not highly effective in offsetting changes in the estimated fair value or cash flows of a hedged item, the derivative continues to be carried on the balance sheet at its estimated fair value, with changes in estimated fair value recognized in net derivative gains (losses). The carrying value of the hedged recognized asset or liability under a fair value hedge is no longer adjusted for changes in its estimated fair value due to the hedged risk, and the cumulative adjustment to its carrying value is amortized into income over the remaining life of the hedged item. Provided the hedged forecasted transaction is still probable of occurring, the changes in estimated fair value of derivatives recorded in OCI related to discontinued cash flow hedges are released into the statement of operations when the Company’s earnings are affected by the variability in cash flows of the hedged item. When hedge accounting is discontinued because it is no longer probable that the forecasted transactions will occur on the anticipated date or within two months of that date, the derivative continues to be carried on the balance sheet at its estimated fair value, with changes in estimated fair value recognized currently in net derivative gains (losses). Deferred gains and losses of a derivative recorded in OCI pursuant to the discontinued cash flow hedge of a forecasted transaction that is no longer probable of occurring are recognized immediately in net investment gains (losses). In all other situations in which hedge accounting is discontinued, the derivative is carried at its estimated fair value on the balance sheet, with changes in its estimated fair value recognized in the current period as net derivative gains (losses). Embedded Derivatives The Company issues certain products, which include variable annuities and investment contracts, and is a party to certain reinsurance agreements that have embedded derivatives. The Company assesses each identified embedded derivative to determine whether it is required to be bifurcated. The embedded derivative is bifurcated from the host contract and accounted for as a freestanding derivative if: • the combined instrument is not accounted for in its entirety at estimated fair value with changes in estimated fair value recorded in earnings; • the terms of the embedded derivative are not clearly and closely related to the economic characteristics of the host contract; and • a separate instrument with the same terms as the embedded derivative would qualify as a derivative instrument. Such embedded derivatives are carried on the balance sheet at estimated fair value with the host contract and changes in their estimated fair value are generally reported in net derivative gains (losses). If the Company is unable to properly identify and measure an embedded derivative for separation from its host contract, the entire contract is carried on the balance sheet at estimated fair value, with changes in estimated fair value recognized in the current period in net investment gains (losses) or net investment income. Additionally, the Company may elect to carry an entire contract on the balance sheet at estimated fair value, with changes in estimated fair value recognized in the current period in net investment gains (losses) or net investment income if that contract contains an embedded derivative that requires bifurcation. At inception, the Company attributes to the embedded derivative a portion of the projected future guarantee fees to be collected from the policyholder equal to the present value of projected future guaranteed benefits. Any additional fees represent “excess” fees and are reported in universal life and investment-type product policy fees. See Note 8 for information about the fair value hierarchy for derivatives. Derivative Strategies The Company is exposed to various risks relating to its ongoing business operations, including interest rate, foreign currency exchange rate, credit and equity market. The Company uses a variety of strategies to manage these risks, including the use of derivatives. Derivatives are financial instruments with values derived from interest rates, foreign currency exchange rates, credit spreads and/or other financial indices. Derivatives may be exchange-traded or contracted in the over-the-counter (“OTC”) market. Certain of the Company’s OTC derivatives are cleared and settled through central clearing counterparties (“OTC-cleared”), while others are bilateral contracts between two counterparties (“OTC-bilateral”). The types of derivatives the Company uses include swaps, forwards, futures and option contracts. To a lesser extent, the Company uses credit default swaps and structured interest rate swaps to synthetically replicate investment risks and returns which are not readily available in the cash markets. Interest Rate Derivatives The Company uses a variety of interest rate derivatives to reduce its exposure to changes in interest rates, including interest rate swaps, interest rate total return swaps, caps, floors, swaptions, futures and forwards. Interest rate swaps are used by the Company primarily to reduce market risks from changes in interest rates and to alter interest rate exposure arising from mismatches between assets and liabilities (duration mismatches). In an interest rate swap, the Company agrees with another party to exchange, at specified intervals, the difference between fixed rate and floating rate interest amounts as calculated by reference to an agreed notional amount. The Company utilizes interest rate swaps in fair value, cash flow and nonqualifying hedging relationships. The Company uses structured interest rate swaps to synthetically create investments that are either more expensive to acquire or otherwise unavailable in the cash markets. These transactions are a combination of a derivative and a cash instrument such as a U.S. government and agency, or other fixed maturity securities AFS. Structured interest rate swaps are included in interest rate swaps and are not designated as hedging instruments. Interest rate total return swaps are swaps whereby the Company agrees with another party to exchange, at specified intervals, the difference between the economic risk and reward of an asset or a market index and a benchmark interest rate, calculated by reference to an agreed notional amount. No cash is exchanged at the outset of the contract. Cash is paid and received over the life of the contract based on the terms of the swap. These transactions are entered into pursuant to master agreements that provide for a single net payment to be made by the counterparty at each due date. Interest rate total return swaps are used by the Company to reduce market risks from changes in interest rates and to alter interest rate exposure arising from mismatches between assets and liabilities (duration mismatches). The Company utilizes interest rate total return swaps in nonqualifying hedging relationships. The Company purchases interest rate caps primarily to protect its floating rate liabilities against rises in interest rates above a specified level, and against interest rate exposure arising from mismatches between assets and liabilities, and interest rate floors primarily to protect its minimum rate guarantee liabilities against declines in interest rates below a specified level. In certain instances, the Company locks in the economic impact of existing purchased caps and floors by entering into offsetting written caps and floors. The Company utilizes interest rate caps and floors in nonqualifying hedging relationships. In exchange-traded interest rate (Treasury and swap) futures transactions, the Company agrees to purchase or sell a specified number of contracts, the value of which is determined by the different classes of interest rate securities, to post variation margin on a daily basis in an amount equal to the difference in the daily market values of those contracts and to pledge initial margin based on futures exchange requirements. The Company enters into exchange-traded futures with regulated futures commission merchants that are members of the exchange. Exchange-traded interest rate (Treasury and swap) futures are used primarily to hedge mismatches between the duration of assets in a portfolio and the duration of liabilities supported by those assets, to hedge against changes in value of securities the Company owns or anticipates acquiring, to hedge against changes in interest rates on anticipated liability issuances by replicating Treasury or swap curve performance, and to hedge minimum guarantees embedded in certain variable annuity products issued by the Company. The Company utilizes exchange-traded interest rate futures in nonqualifying hedging relationships. Swaptions are used by the Company to hedge interest rate risk associated with the Company’s long-term liabilities and invested assets. A swaption is an option to enter into a swap with a forward starting effective date. In certain instances, the Company locks in the economic impact of existing purchased swaptions by entering into offsetting written swaptions. The Company pays a premium for purchased swaptions and receives a premium for written swaptions. The Company utilizes swaptions in nonqualifying hedging relationships. Swaptions are included in interest rate options. The Company enters into interest rate forwards to buy and sell securities. The price is agreed upon at the time of the contract and payment for such a contract is made at a specified future date. The Company utilizes interest rate forwards in cash flow and nonqualifying hedging relationships. A synthetic guaranteed interest contract (“GIC”) is a contract that simulates the performance of a traditional GIC through the use of financial instruments. The contractholder owns the underlying assets, and the Company provides a guarantee (or “wrap”) on the participant funds for an annual risk charge. The Company’s maximum exposure to loss on synthetic GICs is the notional amount, in the event the values of all of the underlying assets were reduced to zero. The Company’s risk is substantially lower due to contractual provisions that limit the portfolio to high quality assets, which are pre-approved and monitored for compliance, as well as the collection of risk charges. In addition, the crediting rates reset periodically to amortize market value gains and losses over a period equal to the duration of the wrapped portfolio, subject to a 0% floor. While plan participants may transact at book value, contractholder withdrawals may only occur immediately at market value, or at book value paid over a period of time per contract provisions. Synthetic GICs are not designated as hedging instruments. Foreign Currency Exchange Rate Derivatives The Company uses foreign currency exchange rate derivatives, including foreign currency swaps, foreign currency forwards, currency options and exchange-traded currency futures, to reduce the risk from fluctuations in foreign currency exchange rates associated with its assets and liabilities denominated in foreign currencies. The Company also uses foreign currency derivatives to hedge the foreign currency exchange rate risk associated with certain of its net investments in foreign operations. In a foreign currency swap transaction, the Company agrees with another party to exchange, at specified intervals, the difference between one currency and another at a fixed exchange rate, generally set at inception, calculated by reference to an agreed upon notional amount. The notional amount of each currency is exchanged at the inception and termination of the currency swap by each party. The Company utilizes foreign currency swaps in fair value, cash flow and nonqualifying hedging relationships. In a foreign currency forward transaction, the Company agrees with another party to deliver a specified amount of an identified currency at a specified future date. The price is agreed upon at the time of the contract and payment for such a contract is made at the specified future date. The Company utilizes foreign currency forwards in fair value, NIFO hedges and nonqualifying hedging relationships. The Company enters into currency options that give it the right, but not the obligation, to sell the foreign currency amount in exchange for a functional currency amount within a limited time at a contracted price. The contracts may also be net settled in cash, based on differentials in the foreign currency exchange rate and the strike price. The Company uses currency options to hedge against the foreign currency exposure inherent in certain of its variable annuity products. The Company also uses currency options as an economic hedge of foreign currency exposure related to the Company’s non-U.S. subsidiaries. The Company utilizes currency options in NIFO hedges and nonqualifying hedging relationships. To a lesser extent, the Company uses exchange-traded currency futures to hedge currency mismatches between assets and liabilities, and to hedge minimum guarantees embedded in certain variable annuity products issued by the Company. The Company utilizes exchange-traded currency futures in nonqualifying hedging relationships. Credit Derivatives The Company enters into purchased credit default swaps to hedge against credit-related changes in the value of its investments. In a credit default swap transaction, the Company agrees with another party to pay, at specified intervals, a premium to hedge credit risk. If a credit event occurs, as defined by the contract, the contract may be cash settled or it may be settled gross by the delivery of par quantities of the referenced investment equal to the specified swap notional amount in exchange for the payment of cash amounts by the counterparty equal to the par value of the investment surrendered. Credit events vary by type of issuer but typically include bankruptcy, failure to pay debt obligations and involuntary restructuring for corporate obligors, as well as repudiation, moratorium or governmental intervention for sovereign obligors. In each case, payout on a credit default swap is triggered only after the Credit Derivatives Determinations Committee of the International Swaps and Derivatives Association, Inc. (“ISDA”) deems that a credit event has occurred. The Company utilizes credit default swaps in nonqualifying hedging relationships. The Company enters into written credit default swaps to synthetically create credit investments that are either more expensive to acquire or otherwise unavailable in the cash markets. These transactions are a combination of a derivative and one or more cash instruments, such as U.S. government and agency, or other fixed maturity securities AFS. These credit default swaps are not designated as hedging instruments. The Company enters into forwards to lock in the price to be paid for forward purchases of certain securities. The price is agreed upon at the time of the contract and payment for the contract is made at a specified future date. When the primary purpose of entering into these transactions is to hedge against the risk of changes in purchase price due to changes in credit spreads, the Company designates these transactions as credit forwards. The Company utilizes credit forwards in cash flow hedging relationships. Equity Derivatives The Company uses a variety of equity derivatives to reduce its exposure to equity market risk, including equity index options, equity variance swaps, exchange-traded equity futures and equity total return swaps. Equity index options are used by the Company primarily to hedge minimum guarantees embedded in certain variable annuity products issued by the Company. To hedge against adverse changes in equity indices, the Company enters into contracts to sell the underlying equity index within a limited time at a contracted price. The contracts will be net settled in cash based on differentials in the indices at the time of exercise and the strike price. Certain of these contracts may also contain settlement provisions linked to interest rates. In certain instances, the Company may enter into a combination of transactions to hedge adverse changes in equity indices within a pre-determined range through the purchase and sale of options. The Company utilizes equity index options in nonqualifying hedging relationships. Equity variance swaps are used by the Company primarily to hedge minimum guarantees embedded in certain variable annuity products issued by the Company. In an equity variance swap, the Company agrees with another party to exchange amounts in the future, based on changes in equity volatility over a defined period. The Company utilizes equity variance swaps in nonqualifying hedging relationships. In exchange-traded equity futures transactions, the Company agrees to purchase or sell a specified number of contracts, the value of which is determined by the different classes of equity securities, to post variation margin on a daily basis in an amount equal to the difference in the daily market values of those contracts and to pledge initial margin based on futures exchange requirements. The Company enters into exchange-traded futures with regulated futures commission merchants that are members of the exchange. Exchange-traded equity futures are used primarily to hedge minimum guarantees embedded in certain variable annuity products issued by the Company. The Company utilizes exchange-traded equity futures in nonqualifying hedging relationships. In an equity total return swap, the Company agrees with another party to exchange, at specified intervals, the difference between the economic risk and reward of an asset or a market index and a benchmark interest rate, calculated by reference to an agreed notional amount. No cash is exchanged at the outset of the contract. Cash is paid and received over the life of the contract based on the terms of the swap. The Company uses equity total return swaps to hedge its equity market guarantees in certain of its insurance products. Equity total return swaps can be used as hedges or to synthetically create investments. The Company utilizes equity total return swaps in nonqualifying hedging relationships. Primary Risks Managed by Derivatives The following table presents the primary underlying risk exposure, gross notional amount, and estimated fair value of the Company’s derivatives, excluding embedded derivatives, held at: March 31, 2020 December 31, 2019 Primary Underlying Risk Exposure Gross Estimated Fair Value Gross Estimated Fair Value Assets Liabilities Assets Liabilities (In millions) Derivatives Designated as Hedging Instruments: Fair value hedges: Interest rate swaps Interest rate $ 3,240 $ 3,394 $ 10 $ 2,369 $ 2,667 $ 2 Foreign currency swaps Foreign currency exchange rate 1,304 71 — 1,304 16 17 Foreign currency forwards Foreign currency exchange rate 2,236 11 26 2,336 1 40 Subtotal 6,780 3,476 36 6,009 2,684 59 Cash flow hedges: Interest rate swaps Interest rate 5,084 181 27 3,675 145 27 Interest rate forwards Interest rate 7,239 1,037 — 7,364 83 144 Foreign currency swaps Foreign currency exchange rate 37,187 4,141 2,359 36,983 1,627 1,430 Subtotal 49,510 5,359 2,386 48,022 1,855 1,601 NIFO hedges: Foreign currency forwards Foreign currency exchange rate 1,059 67 2 1,059 — 10 Currency options Foreign currency exchange rate 3,200 65 — 4,200 33 91 Subtotal 4,259 132 2 5,259 33 101 Total qualifying hedges 60,549 8,967 2,424 59,290 4,572 1,761 Derivatives Not Designated or Not Qualifying as Hedging Instruments: Interest rate swaps Interest rate 70,027 5,127 711 58,083 2,867 185 Interest rate floors Interest rate 12,701 424 — 12,701 155 — Interest rate caps Interest rate 55,630 22 — 42,622 18 5 Interest rate futures Interest rate 2,514 1 5 2,423 2 3 Interest rate options Interest rate 27,600 1,269 — 27,344 764 1 Interest rate forwards Interest rate 130 1 2 129 1 2 Interest rate total return swaps Interest rate 1,048 180 — 1,048 5 49 Synthetic GICs Interest rate 33,588 — — 30,341 — — Foreign currency swaps Foreign currency exchange rate 13,807 1,119 788 13,699 644 461 Foreign currency forwards Foreign currency exchange rate 13,376 193 428 13,507 50 393 Currency futures Foreign currency exchange rate 927 5 — 880 7 — Currency options Foreign currency exchange rate 1,800 1 — 1,801 — — Credit default swaps — purchased Credit 2,919 43 68 2,944 4 102 Credit default swaps — written Credit 11,353 30 90 11,520 272 1 Equity futures Equity market 2,586 28 19 4,540 6 8 Equity index options Equity market 25,181 1,237 303 27,105 694 677 Equity variance swaps Equity market 937 34 11 1,115 23 19 Equity total return swaps Equity market 761 188 — 761 — 70 Total non-designated or nonqualifying derivatives 276,885 9,902 2,425 252,563 5,512 1,976 Total $ 337,434 $ 18,869 $ 4,849 $ 311,853 $ 10,084 $ 3,737 Based on gross notional amounts, a substantial portion of the Company’s derivatives was not designated or did not qualify as part of a hedging relationship at both March 31, 2020 and December 31, 2019 . The Company’s use of derivatives includes (i) derivatives that serve as macro hedges of the Company’s exposure to various risks and that generally do not qualify for hedge accounting due to the criteria required under the portfolio hedging rules, (ii) derivatives that economically hedge insurance liabilities that contain mortality or morbidity risk and that generally do not qualify for hedge accounting because the lack of these risks in the derivatives cannot support an expectation of a highly effective hedging relationship, (iii) derivatives that economically hedge embedded derivatives that do not qualify for hedge accounting because the changes in estimated fair value of the embedded derivatives are already recorded in net income, and (iv) written credit default swaps and interest rate swaps that are used to synthetically create investments and that do not qualify for hedge accounting because they do not involve a hedging relationship. For these nonqualified derivatives, changes in market factors can lead to the recognition of fair value changes on the statement of operations without an offsetting gain or loss recognized in earnings for the item being hedged. The Effects of Derivatives on the Interim Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) The following table presents the consolidated financial statement location and amount of gain (loss) recognized on fair value, cash flow, NIFO, nonqualifying hedging relationships and embedded derivatives: Three Months Ended March 31, 2020 Net Investment Income Net Investment Gains (Losses) Net Derivative Gains (Losses) Policyholder Benefits and Claims Interest Credited to Policyholder Account Balances Other Expenses OCI (In millions) Gain (Loss) on Fair Value Hedges: Interest rate derivatives: Derivatives designated as hedging instruments (1) $ (11 ) $ — $ — $ 774 $ — $ — N/A Hedged items 5 — — (769 ) — — N/A Foreign currency exchange rate derivatives: Derivatives designated as hedging instruments (1) 72 12 — — — — N/A Hedged items (65 ) (10 ) — — — — N/A Amount excluded from the assessment of hedge effectiveness — (20 ) — — — — N/A Subtotal 1 (18 ) — 5 — — N/A Gain (Loss) on Cash Flow Hedges: Interest rate derivatives: (1) Amount of gains (losses) deferred in AOCI N/A N/A N/A N/A N/A N/A $ 2,011 Amount of gains (losses) reclassified from AOCI into income 6 6 — — — 1 (13 ) Foreign currency exchange rate derivatives: (1) Amount of gains (losses) deferred in AOCI N/A N/A N/A N/A N/A N/A 1,614 Amount of gains (losses) reclassified from AOCI into income — (451 ) — — — — 451 Foreign currency transaction gains (losses) on hedged items — 453 — — — — — Credit derivatives: (1) Amount of gains (losses) deferred in AOCI N/A N/A N/A N/A N/A N/A 62 Amount of gains (losses) reclassified from AOCI into income — — — — — — — Subtotal 6 8 — — — 1 4,125 Gain (Loss) on NIFO Hedges: Foreign currency exchange rate derivatives (1) N/A N/A N/A N/A N/A N/A 110 Non-derivative hedging instruments N/A N/A N/A N/A N/A N/A (2 ) Subtotal N/A N/A N/A N/A N/A N/A 108 Gain (Loss) on Derivatives Not Designated or Not Qualifying as Hedging Instruments: Interest rate derivatives (1) (4 ) — 4,177 48 — — N/A Foreign currency exchange rate derivatives (1) — — 135 (8 ) — — N/A Credit derivatives — purchased (1) — — 73 — — — N/A Credit derivatives — written (1) — — (311 ) — — — N/A Equity derivatives (1) — — 1,559 208 — — N/A Foreign currency transaction gains (losses) on hedged items — — (157 ) — — — N/A Subtotal (4 ) — 5,476 248 — — N/A Earned income on derivatives 77 — 147 39 (44 ) — — Embedded derivatives (2) N/A N/A (1,422 ) — N/A N/A N/A Total $ 80 $ (10 ) $ 4,201 $ 292 $ (44 ) $ 1 $ 4,233 Three Months Ended March 31, 2019 Net Investment Income Net Investment Gains (Losses) Net Derivative Gains (Losses) Policyholder Benefits and Claims Interest Credited to Policyholder Account Balances Other Expenses OCI (In millions) Gain (Loss) on Fair Value Hedges: Interest rate derivatives: Derivatives designated as hedging instruments (1) $ (3 ) $ — $ — $ 127 $ — $ — N/A Hedged items 3 — — (128 ) — — N/A Foreign currency exchange rate derivatives: Derivatives designated as hedging instruments (1) (30 ) (14 ) — — — — N/A Hedged items 29 12 — — — — N/A Amount excluded from the assessment of hedge effectiveness — (16 ) — — — — N/A Subtotal (1 ) (18 ) — (1 ) — — N/A Gain (Loss) on Cash Flow Hedges: Interest rate derivatives: (1) Amount of gains (losses) deferred in AOCI NA NA NA NA NA NA $ 252 Amount of gains (losses) reclassified from AOCI into income 5 (6 ) — — — 1 — Foreign currency exchange rate derivatives: (1) Amount of gains (losses) deferred in AOCI NA NA NA NA NA NA (241 ) Amount of gains (losses) reclassified from AOCI into income (2 ) 25 — — — — (23 ) Foreign currency transaction gains (losses) on hedged items — (35 ) — — — — — Credit derivatives: (1) Amount of gains (losses) deferred in AOCI NA NA NA NA NA NA — Amount of gains (losses) reclassified from AOCI into income — 1 — — — — (1 ) Subtotal 3 (15 ) — — — 1 (13 ) Gain (Loss) on NIFO Hedges: Foreign currency exchange rate derivatives (1) N/A N/A N/A N/A N/A N/A (6 ) Non-derivative hedging instruments N/A N/A N/A N/A N/A N/A — Subtotal N/A N/A N/A N/A N/A N/A (6 ) Gain (Loss) on Derivatives Not Designated or Not Qualifying as Hedging Instruments: Interest rate derivatives (1) (1 ) — 409 19 — — N/A Foreign currency exchange rate derivatives (1) — — (142 ) 3 — — N/A Credit derivatives — purchased (1) — — (15 ) — — — N/A Credit derivatives — written (1) — — 136 — — — N/A Equity derivatives (1) — — (667 ) (96 ) — — N/A Foreign currency transaction gains (losses) on hedged items — — 82 — — — N/A Subtotal (1 ) — (197 ) (74 ) — — N/A Earned income on derivatives 56 — 119 32 (32 ) — — Embedded derivatives (2) N/A N/A 193 — N/A N/A N/A Total $ 57 $ (33 ) $ 115 $ (43 ) $ (32 ) $ 1 $ (19 ) __________________ (1) Excludes earned income on derivatives. (2) The valuation of guaranteed minimum benefits includes a nonperformance risk adjustment. The amounts included in net derivative gains (losses) in connection with this adjustment were $185 million and ($62) million for the three months ended March 31, 2020 and 2019, respectively. Fair Value Hedges The Company designates and accounts for the following as fair value hedges when they have met the requirements of fair value hedging: (i) interest rate swaps to convert fixed rate assets and liabilities to floating rate assets and liabilities, (ii) foreign currency swaps to hedge the foreign currency fair value exposure of foreign currency denominated assets and liabilities, and (iii) foreign currency forwards to hedge the foreign currency fair value exposure of foreign currency denominated investments. The following table presents the balance sheet classification, carrying amount and cumulative fair value hedging adjustments for items designated and qualifying as hedged items in fair value hedges: Balance Sheet Line Item Carrying Amount of the Hedged Cumulative Amount March 31, 2020 December 31, 2019 March 31, 2020 December 31, 2019 (In millions) Fixed maturity securities AFS $ 2,662 $ 2,736 $ (1 ) $ (1 ) Mortgage loans $ 1,048 $ 1,159 $ 16 $ 2 Future policy benefits $ (5,705 ) $ (4,475 ) $ (1,677 ) $ (908 ) __________________ (1) At both March 31, 2020 and December 31, 2019, the hedging adjustments on discontinued hedging relationships includes ($1) million . Cash Flow Hedges The Company designates and accounts for the following as cash flow hedges when they have met the requirements of cash flow hedging: (i) interest rate swaps to convert floating rate assets and liabilities to fixed rate assets and liabilitie |
Fair Value
Fair Value | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value | 8. Fair Value Considerable judgment is often required in interpreting the market data used to develop estimates of fair value, and the use of different assumptions or valuation methodologies may have a material effect on the estimated fair value amounts. Recurring Fair Value Measurements The assets and liabilities measured at estimated fair value on a recurring basis and their corresponding placement in the fair value hierarchy, including those items for which the Company has elected the FVO, are presented below at: March 31, 2020 Fair Value Hierarchy Level 1 Level 2 Level 3 Total (In millions) Assets Fixed maturity securities AFS: U.S. corporate $ — $ 75,876 $ 9,195 $ 85,071 Foreign government — 64,740 104 64,844 Foreign corporate — 48,581 10,614 59,195 U.S. government and agency 21,060 26,899 — 47,959 RMBS 161 27,676 2,632 30,469 ABS — 13,878 960 14,838 Municipals — 13,871 — 13,871 CMBS — 10,016 422 10,438 Total fixed maturity securities AFS 21,221 281,537 23,927 326,685 Equity securities 547 131 372 1,050 Unit-linked and FVO Securities (1) 8,812 1,816 517 11,145 Short-term investments (2) 2,917 2,150 368 5,435 Residential mortgage loans — FVO — — 180 180 Other investments 65 157 475 697 Derivative assets: (3) Interest rate 1 10,417 1,218 11,636 Foreign currency exchange rate 5 5,651 17 5,673 Credit — 53 20 73 Equity market 28 1,392 67 1,487 Total derivative assets 34 17,513 1,322 18,869 Embedded derivatives within asset host contracts (4) — — 76 76 Separate account assets (5) 73,366 94,027 1,061 168,454 Total assets (6) $ 106,962 $ 397,331 $ 28,298 $ 532,591 Liabilities Derivative liabilities: (3) Interest rate $ 5 $ 748 $ 2 $ 755 Foreign currency exchange rate — 3,354 249 3,603 Credit — 137 21 158 Equity market 19 303 11 333 Total derivative liabilities 24 4,542 283 4,849 Embedded derivatives within liability host contracts (4) — — 2,308 2,308 Separate account liabilities (5) 4 46 15 65 Total liabilities $ 28 $ 4,588 $ 2,606 $ 7,222 December 31, 2019 Fair Value Hierarchy Level 1 Level 2 Level 3 Total (In millions) Assets Fixed maturity securities AFS: U.S. corporate $ — $ 81,501 $ 6,252 $ 87,753 Foreign government — 67,112 117 67,229 Foreign corporate — 56,188 7,977 64,165 U.S. government and agency 21,058 21,026 — 42,084 RMBS 3 25,682 2,862 28,547 ABS — 13,326 1,216 14,542 Municipals — 13,046 7 13,053 CMBS — 10,067 380 10,447 Total fixed maturity securities AFS 21,061 287,948 18,811 327,820 Equity securities 794 118 430 1,342 Unit-linked and FVO Securities (1) 10,598 1,879 625 13,102 Short-term investments (2) 2,042 1,108 32 3,182 Residential mortgage loans — FVO — — 188 188 Other investments 74 160 455 689 Derivative assets: (3) Interest rate 2 6,616 89 6,707 Foreign currency exchange rate 7 2,336 35 2,378 Credit — 244 32 276 Equity market 6 686 31 723 Total derivative assets 15 9,882 187 10,084 Embedded derivatives within asset host contracts (4) — — 60 60 Separate account assets (5) 86,790 100,668 987 188,445 Total assets (6) $ 121,374 $ 401,763 $ 21,775 $ 544,912 Liabilities Derivative liabilities: (3) Interest rate $ 3 $ 220 $ 195 $ 418 Foreign currency exchange rate — 2,324 118 2,442 Credit — 102 1 103 Equity market 8 747 19 774 Total derivative liabilities 11 3,393 333 3,737 Embedded derivatives within liability host contracts (4) — — 802 802 Separate account liabilities (5) 1 14 7 22 Total liabilities $ 12 $ 3,407 $ 1,142 $ 4,561 __________________ (1) Unit-linked and FVO Securities were primarily comprised of Unit-linked investments at both March 31, 2020 and December 31, 2019. (2) Short-term investments as presented in the tables above differ from the amounts presented on the interim condensed consolidated balance sheets because certain short-term investments are not measured at estimated fair value on a recurring basis. (3) Derivative assets are presented within other invested assets on the interim condensed consolidated balance sheets and derivative liabilities are presented within other liabilities on the interim condensed consolidated balance sheets. The amounts are presented gross in the tables above to reflect the presentation on the interim condensed consolidated balance sheets, but are presented net for purposes of the rollforward in the Fair Value Measurements Using Significant Unobservable Inputs (Level 3) tables. (4) Embedded derivatives within asset host contracts are presented within premiums, reinsurance and other receivables and other invested assets on the interim condensed consolidated balance sheets. Embedded derivatives within liability host contracts are presented within policyholder account balances and other liabilities on the interim condensed consolidated balance sheets. (5) Investment performance related to separate account assets is fully offset by corresponding amounts credited to contractholders whose liability is reflected within separate account liabilities. Separate account liabilities are set equal to the estimated fair value of separate account assets. Separate account liabilities presented in the tables above represent derivative liabilities. (6) Total assets included in the fair value hierarchy exclude other limited partnership interests that are measured at estimated fair value using the net asset value (“NAV”) per share (or its equivalent) practical expedient. At March 31, 2020 and December 31, 2019, the estimated fair value of such investments was $92 million and $95 million , respectively. The following describes the valuation methodologies used to measure assets and liabilities at fair value. Investments Securities, Short-term Investments and Other Investments When available, the estimated fair value of these financial instruments is based on quoted prices in active markets that are readily and regularly obtainable. Generally, these are the most liquid of the Company’s securities holdings and valuation of these securities does not involve management’s judgment. When quoted prices in active markets are not available, the determination of estimated fair value is based on market standard valuation methodologies, giving priority to observable inputs. The significant inputs to the market standard valuation methodologies for certain types of securities with reasonable levels of price transparency are inputs that are observable in the market or can be derived principally from, or corroborated by, observable market data. When observable inputs are not available, the market standard valuation methodologies rely on inputs that are significant to the estimated fair value that are not observable in the market or cannot be derived principally from, or corroborated by, observable market data. These unobservable inputs can be based in large part on management’s judgment or estimation and cannot be supported by reference to market activity. Even though these inputs are unobservable, management believes they are consistent with what other market participants would use when pricing such securities and are considered appropriate given the circumstances. The estimated fair value of other investments is determined on a basis consistent with the methodologies described herein for securities. The valuation approaches and key inputs for each category of assets or liabilities that are classified within Level 2 and Level 3 of the fair value hierarchy are presented below. The primary valuation approaches are the market approach, which considers recent prices from market transactions involving identical or similar assets or liabilities, and the income approach, which converts expected future amounts (e.g. cash flows) to a single current, discounted amount. The valuation of most instruments listed below is determined using independent pricing sources, matrix pricing, discounted cash flow methodologies or other similar techniques that use either observable market inputs or unobservable inputs. Instrument Level 2 Observable Inputs Level 3 Unobservable Inputs Fixed maturity securities AFS U.S. corporate and Foreign corporate securities Valuation Approaches: Principally the market and income approaches. Valuation Approaches: Principally the market approach. Key Inputs: Key Inputs: • quoted prices in markets that are not active • illiquidity premium • benchmark yields; spreads off benchmark yields; new issuances; issuer ratings • delta spread adjustments to reflect specific credit-related issues • trades of identical or comparable securities; duration • credit spreads • privately-placed securities are valued using the additional key inputs: • quoted prices in markets that are not active for identical or similar securities that are less liquid and based on lower levels of trading activity than securities classified in Level 2 • market yield curve; call provisions • observable prices and spreads for similar public or private securities that incorporate the credit quality and industry sector of the issuer • independent non-binding broker quotations • delta spread adjustments to reflect specific credit-related issues Foreign government securities, U.S. government and agency securities and Municipals Valuation Approaches: Principally the market approach. Valuation Approaches: Principally the market approach. Key Inputs: Key Inputs: • quoted prices in markets that are not active • independent non-binding broker quotations • benchmark U.S. Treasury yield or other yields • quoted prices in markets that are not active for identical or similar securities that are less liquid and based on lower levels of trading activity than securities classified in Level 2 • the spread off the U.S. Treasury yield curve for the identical security • issuer ratings and issuer spreads; broker-dealer quotes • credit spreads • comparable securities that are actively traded Structured Products Valuation Approaches: Principally the market and income approaches. Valuation Approaches: Principally the market and income approaches. Key Inputs: Key Inputs: • quoted prices in markets that are not active • credit spreads • spreads for actively traded securities; spreads off benchmark yields • quoted prices in markets that are not active for identical or similar securities that are less liquid and based on lower levels of trading activity than securities classified in Level 2 • expected prepayment speeds and volumes • current and forecasted loss severity; ratings; geographic region • independent non-binding broker quotations • weighted average coupon and weighted average maturity • credit ratings • average delinquency rates; debt-service coverage ratios • credit ratings • issuance-specific information, including, but not limited to: • collateral type; structure of the security; vintage of the loans • payment terms of the underlying assets • payment priority within the tranche; deal performance Instrument Level 2 Observable Inputs Level 3 Unobservable Inputs Equity securities Valuation Approaches: Principally the market approach. Valuation Approaches: Principally the market and income approaches. Key Input: Key Inputs: • quoted prices in markets that are not considered active • credit ratings; issuance structures • quoted prices in markets that are not active for identical or similar securities that are less liquid and based on lower levels of trading activity than securities classified in Level 2 • independent non-binding broker quotations Unit-linked and FVO Securities, Short-term investments and Other investments • Unit-linked and FVO Securities include mutual fund interests without readily determinable fair values given prices are not published publicly. Valuation of these mutual funds is based upon quoted prices or reported NAV provided by the fund managers, which were based on observable inputs. • Unit-linked and FVO Securities, short-term investments and other investments are of a similar nature and class to the fixed maturity securities AFS and equity securities described above; accordingly, the valuation approaches and unobservable inputs used in their valuation are also similar to those described above. • Short-term investments and other investments are of a similar nature and class to the fixed maturity securities AFS and equity securities described above; accordingly, the valuation approaches and observable inputs used in their valuation are also similar to those described above. Residential mortgage loans — FVO • N/A Valuation Approaches: Principally the market approach. Valuation Techniques and Key Inputs: These investments are based primarily on matrix pricing or other similar techniques that utilize inputs from mortgage servicers that are unobservable or cannot be derived principally from, or corroborated by, observable market data. Separate account assets and Separate account liabilities (1) Mutual funds and hedge funds without readily determinable fair values as prices are not published publicly Key Input: • N/A • quoted prices or reported NAV provided by the fund managers Other limited partnership interests • N/A Valued giving consideration to the underlying holdings of the partnerships and adjusting, if appropriate. Key Inputs: • liquidity; bid/ask spreads; performance record of the fund manager • other relevant variables that may impact the exit value of the particular partnership interest __________________ (1) Estimated fair value equals carrying value, based on the value of the underlying assets, including: mutual fund interests, fixed maturity securities, equity securities, derivatives, hedge funds, other limited partnership interests, short-term investments and cash and cash equivalents. Fixed maturity securities, equity securities, derivatives, short-term investments and cash and cash equivalents are similar in nature to the instruments described under “— Securities, Short-term Investments and Other Investments” and “— Derivatives — Freestanding Derivatives.” Derivatives The estimated fair value of derivatives is determined through the use of quoted market prices for exchange-traded derivatives, or through the use of pricing models for OTC-bilateral and OTC-cleared derivatives. The determination of estimated fair value, when quoted market values are not available, is based on market standard valuation methodologies and inputs that management believes are consistent with what other market participants would use when pricing such instruments. Derivative valuations can be affected by changes in interest rates, foreign currency exchange rates, financial indices, credit spreads, default risk, nonperformance risk, volatility, liquidity and changes in estimates and assumptions used in the pricing models. The significant inputs to the pricing models for most OTC-bilateral and OTC-cleared derivatives are inputs that are observable in the market or can be derived principally from, or corroborated by, observable market data. Certain OTC-bilateral and OTC-cleared derivatives may rely on inputs that are significant to the estimated fair value that are not observable in the market or cannot be derived principally from, or corroborated by, observable market data. These unobservable inputs may involve significant management judgment or estimation. Even though unobservable, these inputs are based on assumptions deemed appropriate given the circumstances and management believes they are consistent with what other market participants would use when pricing such instruments. Most inputs for OTC-bilateral and OTC-cleared derivatives are mid-market inputs but, in certain cases, liquidity adjustments are made when they are deemed more representative of exit value. Market liquidity, as well as the use of different methodologies, assumptions and inputs, may have a material effect on the estimated fair values of the Company’s derivatives and could materially affect net income. The credit risk of both the counterparty and the Company are considered in determining the estimated fair value for all OTC-bilateral and OTC-cleared derivatives, and any potential credit adjustment is based on the net exposure by counterparty after taking into account the effects of netting agreements and collateral arrangements. The Company values its OTC-bilateral and OTC-cleared derivatives using standard swap curves which may include a spread to the risk-free rate, depending upon specific collateral arrangements. This credit spread is appropriate for those parties that execute trades at pricing levels consistent with similar collateral arrangements. As the Company and its significant derivative counterparties generally execute trades at such pricing levels and hold sufficient collateral, additional credit risk adjustments are not currently required in the valuation process. The Company’s ability to consistently execute at such pricing levels is, in part, due to the netting agreements and collateral arrangements that are in place with all of its significant derivative counterparties. An evaluation of the requirement to make additional credit risk adjustments is performed by the Company each reporting period. Freestanding Derivatives Level 2 Valuation Approaches and Key Inputs: This level includes all types of derivatives utilized by the Company with the exception of exchange-traded derivatives included within Level 1 and those derivatives with unobservable inputs as described in Level 3. Level 3 Valuation Approaches and Key Inputs: These valuation methodologies generally use the same inputs as described in the corresponding sections for Level 2 measurements of derivatives. However, these derivatives result in Level 3 classification because one or more of the significant inputs are not observable in the market or cannot be derived principally from, or corroborated by, observable market data. Freestanding derivatives are principally valued using the income approach. Valuations of non-option-based derivatives utilize present value techniques, whereas valuations of option-based derivatives utilize option pricing models. Key inputs are as follows: Instrument Interest Rate Foreign Currency Exchange Rate Credit Equity Market Inputs common to Level 2 and Level 3 by instrument type • swap yield curves • swap yield curves • swap yield curves • swap yield curves • basis curves • basis curves • credit curves • spot equity index levels • interest rate volatility (1) • currency spot rates • recovery rates • dividend yield curves • cross currency basis curves • equity volatility (1) • currency volatility (1) Level 3 • swap yield curves (2) • swap yield curves (2) • swap yield curves (2) • dividend yield curves (2) • basis curves (2) • basis curves (2) • credit curves (2) • equity volatility (1), (2) • repurchase rates • cross currency basis curves (2) • credit spreads • correlation between model inputs (1) • currency correlation • repurchase rates • currency volatility (1) • independent non-binding broker quotations __________________ (1) Option-based only. (2) Extrapolation beyond the observable limits of the curve(s). Embedded Derivatives Embedded derivatives principally include certain direct, assumed and ceded variable annuity guarantees, annuity contracts, and investment risk within funds withheld related to certain reinsurance agreements. Embedded derivatives are recorded at estimated fair value with changes in estimated fair value reported in net income. The Company issues certain variable annuity products with guaranteed minimum benefits. GMWBs, GMABs and certain GMIBs contain embedded derivatives, which are measured at estimated fair value separately from the host variable annuity contract, with changes in estimated fair value reported in net derivative gains (losses). These embedded derivatives are classified within policyholder account balances on the consolidated balance sheets. The Company calculates the fair value of these embedded derivatives, which is estimated as the present value of projected future benefits minus the present value of projected future fees using actuarial and capital market assumptions including expectations concerning policyholder behavior. The calculation is based on in-force business, projecting future cash flows from the embedded derivative over multiple risk neutral stochastic scenarios using observable risk-free rates. Capital market assumptions, such as risk-free rates and implied volatilities, are based on market prices for publicly traded instruments to the extent that prices for such instruments are observable. Implied volatilities beyond the observable period are extrapolated based on observable implied volatilities and historical volatilities. Actuarial assumptions, including mortality, lapse, withdrawal and utilization, are unobservable and are reviewed at least annually based on actuarial studies of historical experience. The valuation of these guarantee liabilities includes nonperformance risk adjustments and adjustments for a risk margin related to non-capital market inputs. The nonperformance adjustment is determined by taking into consideration publicly available information relating to spreads in the secondary market for MetLife, Inc.’s debt, including related credit default swaps. These observable spreads are then adjusted, as necessary, to reflect the priority of these liabilities and the claims paying ability of the issuing insurance subsidiaries as compared to MetLife, Inc. Risk margins are established to capture the non-capital market risks of the instrument which represent the additional compensation a market participant would require to assume the risks related to the uncertainties of such actuarial assumptions as annuitization, premium persistency, partial withdrawal and surrenders. The establishment of risk margins requires the use of significant management judgment, including assumptions of the amount and cost of capital needed to cover the guarantees. These guarantees may be more costly than expected in volatile or declining equity markets. Market conditions including, but not limited to, changes in interest rates, equity indices, market volatility and foreign currency exchange rates; changes in nonperformance risk; and variations in actuarial assumptions regarding policyholder behavior, mortality and risk margins related to non-capital market inputs, may result in significant fluctuations in the estimated fair value of the guarantees that could materially affect net income. The Company ceded the risk associated with certain of the GMIBs previously described. These reinsurance agreements contain embedded derivatives which are included within premiums, reinsurance and other receivables on the consolidated balance sheets with changes in estimated fair value reported in net derivative gains (losses) or policyholder benefits and claims depending on the statement of operations classification of the direct risk. The value of the embedded derivatives on the ceded risk is determined using a methodology consistent with that described previously for the guarantees directly written by the Company with the exception of the input for nonperformance risk that reflects the credit of the reinsurer. The estimated fair value of the embedded derivatives within funds withheld related to certain ceded reinsurance is determined based on the change in estimated fair value of the underlying assets held by the Company in a reference portfolio backing the funds withheld liability. The estimated fair value of the underlying assets is determined as described in “— Investments — Securities, Short-term Investments and Other Investments.” The estimated fair value of these embedded derivatives is included, along with their funds withheld hosts, in other liabilities on the consolidated balance sheets with changes in estimated fair value recorded in net derivative gains (losses). Changes in the credit spreads on the underlying assets, interest rates and market volatility may result in significant fluctuations in the estimated fair value of these embedded derivatives that could materially affect net income. The Company issues certain annuity contracts which allow the policyholder to participate in returns from equity indices. These equity indexed features are embedded derivatives which are measured at estimated fair value separately from the host fixed annuity contract, with changes in estimated fair value reported in net derivative gains (losses). These embedded derivatives are classified within policyholder account balances on the interim condensed consolidated balance sheets. The estimated fair value of the embedded equity indexed derivatives, based on the present value of future equity returns to the policyholder using actuarial and present value assumptions including expectations concerning policyholder behavior, is calculated by the Company’s actuarial department. The calculation is based on in-force business and uses standard capital market techniques, such as Black-Scholes, to calculate the value of the portion of the embedded derivative for which the terms are set. The portion of the embedded derivative covering the period beyond where terms are set is calculated as the present value of amounts expected to be spent to provide equity indexed returns in those periods. The valuation of these embedded derivatives also includes the establishment of a risk margin, as well as changes in nonperformance risk. Embedded Derivatives Within Asset and Liability Host Contracts Level 3 Valuation Approaches and Key Inputs: Direct and assumed guaranteed minimum benefits These embedded derivatives are principally valued using the income approach. Valuations are based on option pricing techniques, which utilize significant inputs that may include swap yield curves, currency exchange rates and implied volatilities. These embedded derivatives result in Level 3 classification because one or more of the significant inputs are not observable in the market or cannot be derived principally from, or corroborated by, observable market data. Significant unobservable inputs generally include: the extrapolation beyond observable limits of the swap yield curves and implied volatilities, actuarial assumptions for policyholder behavior and mortality and the potential variability in policyholder behavior and mortality, nonperformance risk and cost of capital for purposes of calculating the risk margin. Reinsurance ceded on certain guaranteed minimum benefits These embedded derivatives are principally valued using the income approach. The valuation techniques and significant market standard unobservable inputs used in their valuation are similar to those described above in “— Direct and assumed guaranteed minimum benefits” and also include counterparty credit spreads. Transfers between Levels Overall, transfers between levels occur when there are changes in the observability of inputs and market activity. Transfers into or out of Level 3: Assets and liabilities are transferred into Level 3 when a significant input cannot be corroborated with market observable data. This occurs when market activity decreases significantly and underlying inputs cannot be observed, current prices are not available, and/or when there are significant variances in quoted prices, thereby affecting transparency. Assets and liabilities are transferred out of Level 3 when circumstances change such that a significant input can be corroborated with market observable data. This may be due to a significant increase in market activity, a specific event, or one or more significant input(s) becoming observable. Assets and Liabilities Measured at Fair Value Using Significant Unobservable Inputs (Level 3) The following table presents certain quantitative information about the significant unobservable inputs used in the fair value measurement, and the sensitivity of the estimated fair value to changes in those inputs, for the more significant asset and liability classes measured at fair value on a recurring basis using significant unobservable inputs (Level 3) at: March 31, 2020 December 31, 2019 Impact of Valuation Significant Range Weighted Range Weighted Fixed maturity securities AFS (3) U.S. corporate and foreign corporate • Matrix pricing • Offered quotes (4) — - 191 104 5 - 145 110 Increase • Market pricing • Quoted prices (4) 20 - 130 96 25 - 131 100 Increase • Consensus pricing • Offered quotes (4) 50 - 108 99 81 - 109 102 Increase RMBS • Market pricing • Quoted prices (4) — - 126 89 — - 119 95 Increase (5) ABS • Market pricing • Quoted prices (4) 3 - 109 91 3 - 119 98 Increase (5) • Consensus pricing • Offered quotes (4) 100 - 100 100 99 - 104 100 Increase (5) Derivatives Interest rate • Present value techniques • Swap yield (6) 66 - 147 117 190 - 251 Increase (7) • Repurchase rates (8) (18) - — (10) (6) - 6 Decrease (7) Foreign currency exchange rate • Present value techniques • Swap yield (6) (224) - 328 (131) (125) - 328 Increase (7) Credit • Present value techniques • Credit spreads (9) 98 - 104 100 96 - 100 Decrease (7) • Consensus pricing • Offered quotes (10) Equity market • Present value techniques or option pricing models • Volatility (11) 21% - 56% 35% 14% - 23% Increase (7) • Correlation (12) 10% - 30% 13% 10% - 30% Embedded derivatives Direct, assumed and ceded guaranteed minimum benefits • Option pricing techniques • Mortality rates: Ages 0 - 40 0% - 0.18% 0% 0% - 0.18% Decrease (13) Ages 41 - 60 0.03% - 0.80% 0.30% 0.03% - 0.80% Decrease (13) Ages 61 - 115 0.13% - 100% 1.90% 0.13% - 100% Decrease (13) • Lapse rates: Durations 1 - 10 0.25% - 100% 7.90% 0.25% - 100% Decrease (14) Durations 11 - 20 0.50% - 100% 6.40% 0.50% - 100% Decrease (14) Durations 21 - 116 0.50% - 100% 6.40% 0.50% - 100% Decrease (14) • Utilization rates 0% - 22% 0.90% 0% - 22% Increase (15) • Withdrawal rates 0% - 20% 4.23% 0% - 20% (16) • Long-term equity volatilities 7.39% - 30% 18.30% 6.01% - 30% Increase (17) • Nonperformance risk spread 0.08% - 1.69% 0.49% 0.03% - 1.30% Decrease (18) __________________ (1) The weighted average for fixed maturity securities AFS and derivatives is determined based on the estimated fair value of the securities. The weighted average for embedded derivatives is determined based on a combination of account values and experience data. (2) The impact of a decrease in input would have resulted in the opposite impact on estimated fair value. For embedded derivatives, changes to direct and assumed guaranteed minimum benefits are based on liability positions; changes to ceded guaranteed minimum benefits are based on asset positions. (3) Significant increases (decreases) in expected default rates in isolation would have resulted in substantially lower (higher) valuations. (4) Range and weighted average are presented in accordance with the market convention for fixed maturity securities AFS of dollars per hundred dollars of par. (5) Changes in the assumptions used for the probability of default would have been accompanied by a directionally similar change in the assumption used for the loss severity and a directionally opposite change in the assumptions used for prepayment rates. (6) Ranges represent the rates across different yield curves and are presented in basis points. The swap yield curves are utilized among different types of derivatives to project cash flows, as well as to discount future cash flows to present value. Since this valuation methodology uses a range of inputs across a yield curve to value the derivative, presenting a range is more representative of the unobservable input used in the valuation. (7) Changes in estimated fair value are based on long U.S. dollar net asset positions and will be inversely impacted for short U.S. dollar net asset positions. (8) Ranges represent different repurchase rates utilized as components within the valuation methodology and are presented in basis points. (9) Represents the risk quoted in basis points of a credit default event on the underlying instrument. Credit derivatives with significant unobservable inputs are primarily comprised of written credit default swaps. (10) At both March 31, 2020 and December 31, 2019 , independent non-binding broker quotations were used in the determination of less than 1% of the total net derivative estimated fair value. (11) Ranges represent the underlying equity volatility quoted in percentage points. Since this valuation methodology uses a range of inputs across multiple volatility surfaces to value the derivative, presenting a range is more representative of the unobservable input used in the valuation. (12) Ranges represent the different correlation factors utilized as components within the valuation methodology. Presenting a range of correlation factors is more representative of the unobservable input used in the valuation. Increases (decreases) in correlation in isolation will increase (decrease) the significance |
Long Term Debt
Long Term Debt | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | 9. Long Term Debt Senior Notes In March 2020, MetLife, Inc. issued $1.0 billion of senior notes due March 2030 which bear interest at a fixed rate of 4.550% , the interest on which is payable semi-annually. In connection with the issuance, MetLife, Inc. incurred $6 million of related costs which will be amortized over the term of the senior notes. |
Equity
Equity | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Equity | 10. Equity Preferred Stock Preferred stock authorized, issued and outstanding was as follows: March 31, 2020 December 31, 2019 Series Shares Shares Shares Shares Shares Shares Floating Rate Non-Cumulative Preferred Stock, Series A 27,600,000 24,000,000 24,000,000 27,600,000 24,000,000 24,000,000 5.25% Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series C 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 5.875% Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series D 500,000 500,000 500,000 500,000 500,000 500,000 5.625% Non-Cumulative Preferred Stock, Series E 32,200 32,200 32,200 32,200 32,200 32,200 4.75% Non-Cumulative Preferred Stock, Series F 40,000 40,000 40,000 — — — Series A Junior Participating Preferred Stock 10,000,000 — — 10,000,000 — — Not designated 160,327,800 — — 160,367,800 — — Total 200,000,000 26,072,200 26,072,200 200,000,000 26,032,200 26,032,200 On January 15, 2020, MetLife, Inc. issued 40,000 shares of 4.75% Non-Cumulative Preferred Stock, Series F (the “Series F preferred stock”) with a $0.01 par value per share and a liquidation preference of $25,000 per share, for aggregate net proceeds of $972 million . MetLife, Inc. deposited the Series F preferred stock under a deposit agreement with a depositary, which issued interests in fractional shares of the Series F preferred stock in the form of depositary shares (“Series F Depositary Shares”) evidenced by depositary receipts; each Series F Depositary Share representing 1/1,000th interest in a share of the Series F preferred stock. In connection with the offering of the Series F Depositary Shares, MetLife, Inc. incurred approximately $28 million of issuance costs which have been recorded as a reduction of additional paid-in capital. MetLife, Inc. will pay dividends on the Series F preferred stock only when, as and if declared by MetLife, Inc.’s Board of Directors (or a duly authorized committee thereof), out of funds legally available for the payment of dividends. Any such dividends will be payable on a non-cumulative basis from the date of original issue, quarterly in arrears on the 15th day of March, June, September and December of each year, commencing on June 15, 2020. MetLife, Inc. may, at its option, redeem the Series F preferred stock, (i) in whole but not in part at any time prior to March 15, 2025, within 90 days after the occurrence of a “rating agency event,” at a redemption price equal to $25,500 per share of Series F preferred stock (equivalent to $25.50 per Series F Depositary Share), plus an amount equal to any accrued and unpaid dividends per share that have accrued but have not been declared and paid for the then-current dividend period to, but excluding, the redemption date, (ii) in whole but not in part, at any time prior to March 15, 2025, within 90 days after the occurrence of a “regulatory capital event,” and (iii) in whole or in part, at any time or from time to time, on or after March 15, 2025, in the case of (ii) or (iii), at a redemption price equal to $25,000 per share of Series F preferred stock (equivalent to $25 per Series F Depositary Share), plus an amount equal to any dividends per share that have accrued but not been declared and paid for the then-current dividend period to, but excluding, such redemption date. A “rating agency event” means that any nationally recognized statistical rating organization that then publishes a rating for MetLife, Inc. amends, clarifies or changes the criteria used to assign equity credit to securities like the Series F preferred stock, which results in the lowering of the equity credit assigned to the Series F preferred stock or shortens the length of time that the Series F preferred stock is assigned a particular level of equity credit. A “regulatory capital event” could occur as a result of a change or proposed change in capital adequacy rules (or the interpretation or application thereof) of any capital regulator, including but not limited to the Board of Governors of the Federal Reserve System (“Federal Reserve Board”), the Federal Insurance Office, the National Association of Insurance Commissioners or any state insurance regulator as may then have group-wide oversight of MetLife, Inc.’s regulatory capital, from rules (or the interpretation or application thereof) in effect as of January 15, 2020, that would create a more than insubstantial risk, as determined by MetLife, Inc., that the Series F preferred stock would not be treated as “Tier 1 capital” or as capital with attributes similar to those of Tier 1 capital, except that a “regulatory capital event” will not include a change or proposed change (or the interpretation or application thereof) that would result in the adoption of any criteria substantially the same as the criteria in the capital adequacy rules of the Federal Reserve Board applicable to bank holding companies as of January 15, 2020. The declaration, record and payment dates, as well as per share and aggregate dividend amounts, for MetLife, Inc.’s preferred stock were as follows for the three months ended March 31, 2020 and 2019 : Declaration Date Record Date Payment Date Preferred Stock Dividend Series A Series C Series D Series E Series F Per Share Aggregate Per Aggregate Per Aggregate Per Aggregate Per Aggregate (In millions, except per share data) March 5, 2020 March 1, 2020 March 16, 2020 $ 0.253 $ 6 $ — $ — $ — $ — $ — $ — $ — $ — February 18, 2020 February 29, 2020 March 16, 2020 — — — — 29.375 15 351.563 11 — — Total $ 0.253 $ 6 $ — $ — $ 29.375 $ 15 $ 351.563 $ 11 $ — $ — March 5, 2019 February 28, 2019 March 15, 2019 $ 0.250 $ 6 $ — $ — $ — $ — $ — $ — $ — $ — February 15, 2019 February 28, 2019 March 15, 2019 — — — — 29.375 15 351.563 11 — — Total $ 0.250 $ 6 $ — $ — $ 29.375 $ 15 $ 351.563 $ 11 $ — $ — Common Stock For the three months ended March 31, 2020 and 2019 , MetLife, Inc. repurchased 10,664,608 shares and 11,198,634 shares of its common stock, respectively, through open market purchases for $500 million in each of the periods. MetLife, Inc. announced that its Board of Directors authorized common stock repurchases as follows: Authorization Remaining at Announcement Date Authorization Amount March 31, 2020 (In millions) July 31, 2019 $ 2,000 $ 485 November 1, 2018 $ 2,000 $ — Under these authorizations, MetLife, Inc. may purchase its common stock from the MetLife Policyholder Trust, in the open market (including pursuant to the terms of a pre-set trading plan meeting the requirements of Rule 10b5-1 under the Securities Exchange Act of 1934 (“Exchange Act”)), and in privately negotiated transactions. Common stock repurchases are subject to the discretion of MetLife, Inc.’s Board of Directors and will depend upon the Company’s capital position, liquidity, financial strength and credit ratings, general market conditions, the market price of MetLife, Inc.’s common stock compared to management’s assessment of the stock’s underlying value, applicable regulatory approvals, and other legal and accounting factors. The declaration, record and payment dates, as well as per share and aggregate dividend amounts, for MetLife, Inc.’s common stock were as follows for the three months ended March 31, 2020 and 2019 : Declaration Date Record Date Payment Date Common Stock Dividend Per Share Aggregate (In millions, except per share data) January 7, 2020 February 4, 2020 March 13, 2020 $ 0.440 404 January 7, 2019 February 5, 2019 March 13, 2019 $ 0.420 405 See Note 16 for information on a common stock dividend declared subsequent to March 31, 2020 . Stock-Based Compensation Plans Performance Shares and Performance Units Final Performance Shares are paid in shares of MetLife, Inc. common stock. Final Performance Units are payable in cash equal to the closing price of MetLife, Inc. common stock on a date following the last day of the three-year performance period. The performance factor for the January 1, 2017 – December 31, 2019 performance period was 91.4% , which was determined within a possible range from 0% to 175% . This factor has been applied to the 1,068,099 Performance Shares and 166,191 Performance Units associated with that performance period that vested on December 31, 2019 . As a result, in the first quarter of 2020 , MetLife, Inc. issued 976,242 shares of its common stock (less withholding for taxes and other items, as applicable), excluding shares that payees choose to defer, and MetLife, Inc. or its affiliates paid the cash value of 151,899 Performance Units (less withholding for taxes and other items, as applicable). Accumulated Other Comprehensive Income (Loss) Information regarding changes in the balances of each component of AOCI attributable to MetLife, Inc. was as follows: Three Months Unrealized Investment Gains (Losses), Net of Related Offsets (1) Unrealized Gains (Losses) on Derivatives Foreign Currency Translation Adjustments Defined Benefit Plans Adjustment Total (In millions) Balance, beginning of period $ 18,283 $ 1,698 $ (4,927 ) $ (2,002 ) $ 13,052 OCI before reclassifications (3,619 ) 3,687 (674 ) — (606 ) Deferred income tax benefit (expense) 927 (810 ) (26 ) — 91 AOCI before reclassifications, net of income tax 15,591 4,575 (5,627 ) (2,002 ) 12,537 Amounts reclassified from AOCI (187 ) 438 — 21 272 Deferred income tax benefit (expense) 48 (96 ) — (4 ) (52 ) Amounts reclassified from AOCI, net of income tax (139 ) 342 — 17 220 Balance, end of period $ 15,452 $ 4,917 $ (5,627 ) $ (1,985 ) $ 12,757 Three Months Unrealized Investment Gains (Losses), Net of Related Offsets (1) Unrealized Gains (Losses) on Derivatives Foreign Currency Translation Adjustments Defined Benefit Plans Adjustment Total (In millions) Balance, beginning of period $ 7,042 $ 1,613 $ (4,905 ) $ (2,028 ) $ 1,722 OCI before reclassifications 6,721 (11 ) (36 ) 1 6,675 Deferred income tax benefit (expense) (1,516 ) 6 (6 ) — (1,516 ) AOCI before reclassifications, net of income tax 12,247 1,608 (4,947 ) (2,027 ) 6,881 Amounts reclassified from AOCI (2 ) (24 ) — 29 3 Deferred income tax benefit (expense) — 12 — (6 ) 6 Amounts reclassified from AOCI, net of income tax (2 ) (12 ) — 23 9 Cumulative effects of changes in accounting principles 4 22 — — 26 Deferred income tax benefit (expense), cumulative effects of changes in accounting principles (1 ) (4 ) — — (5 ) Cumulative effects of changes in accounting principles, net of income tax (2) 3 18 — — 21 Balance, end of period $ 12,248 $ 1,614 $ (4,947 ) $ (2,004 ) $ 6,911 __________________ (1) See Note 6 for information on offsets to investments related to future policy benefits, DAC, VOBA and DSI, and the policyholder dividend obligation. (2) See Note 1 of the Notes to the Consolidated Financial Statements included in the 2019 Annual Report for further information on adoption of new accounting pronouncements. Information regarding amounts reclassified out of each component of AOCI was as follows: Three Months 2020 2019 AOCI Components Amounts Reclassified from AOCI Consolidated Statements of (In millions) Net unrealized investment gains (losses): Net unrealized investment gains (losses) $ 204 $ (24 ) Net investment gains (losses) Net unrealized investment gains (losses) (11 ) 4 Net investment income Net unrealized investment gains (losses) (6 ) 22 Net derivative gains (losses) Net unrealized investment gains (losses), before income tax 187 2 Income tax (expense) benefit (48 ) — Net unrealized investment gains (losses), net of income tax 139 2 Unrealized gains (losses) on derivatives - cash flow hedges: Interest rate derivatives 6 5 Net investment income Interest rate derivatives 6 (6 ) Net investment gains (losses) Interest rate derivatives 1 1 Other expenses Foreign currency exchange rate derivatives — (2 ) Net investment income Foreign currency exchange rate derivatives (451 ) 25 Net investment gains (losses) Credit derivatives — 1 Net investment gains (losses) Gains (losses) on cash flow hedges, before income tax (438 ) 24 Income tax (expense) benefit 96 (12 ) Gains (losses) on cash flow hedges, net of income tax (342 ) 12 Defined benefit plans adjustment: (1) Amortization of net actuarial gains (losses) (26 ) (36 ) Amortization of prior service (costs) credit 5 7 Amortization of defined benefit plan items, before income tax (21 ) (29 ) Income tax (expense) benefit 4 6 Amortization of defined benefit plan items, net of income tax (17 ) (23 ) Total reclassifications, net of income tax $ (220 ) $ (9 ) __________________ (1) These AOCI components are included in the computation of net periodic benefit costs. See Note 12 . |
Other Revenues and Other Expens
Other Revenues and Other Expenses | 3 Months Ended |
Mar. 31, 2020 | |
Other Income and Expenses [Abstract] | |
Other Revenues and Other Expenses Disclosure | 11. Other Revenues and Other Expenses Other Revenues Information on other revenues, which primarily includes fees related to service contracts from customers, was as follows: Three Months 2020 2019 (In millions) Prepaid legal plans $ 101 $ 86 Fee-based investment management 79 77 Recordkeeping and administrative services (1) 49 50 Administrative services-only contracts 56 53 Other revenue from service contracts from customers 60 71 Total revenues from service contracts from customers 345 337 Other 94 157 Total other revenues $ 439 $ 494 __________________ (1) Related to products and businesses no longer actively marketed by the Company. Other Expenses Information on other expenses was as follows: Three Months 2020 2019 (In millions) Employee-related costs (1) $ 869 $ 922 Third party staffing costs 348 369 General and administrative expenses 190 223 Pension, postretirement and postemployment benefit costs 39 56 Premium taxes, other taxes, and licenses & fees 193 170 Commissions and other variable expenses 1,408 1,449 Capitalization of DAC (774 ) (812 ) Amortization of DAC and VOBA 788 624 Amortization of negative VOBA (10 ) (10 ) Interest expense on debt 222 234 Total other expenses $ 3,273 $ 3,225 __________________ (1) Includes $40 million and ($76) million for the three months ended March 31, 2020 and 2019 , respectively, for the net change in cash surrender value of investments in certain life insurance policies, net of premiums paid. Restructuring Charges In December 2019, the Company incurred the remaining restructuring charges related to its unit cost improvement program. During this program period, restructuring charges were included in other expenses and reported in Corporate & Other. Such restructuring charges were as follows: Three Months 2020 2019 Severance (In millions) Balance, beginning of period $ 57 $ 23 Restructuring charges — 7 Cash payments (35 ) (13 ) Balance, end of period $ 22 $ 17 Total severance charges incurred since inception of initiative $ 244 $ 143 |
Employee Benefit Plans
Employee Benefit Plans | 3 Months Ended |
Mar. 31, 2020 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | 12. Employee Benefit Plans Pension and Other Postretirement Benefit Plans Certain subsidiaries of MetLife, Inc. sponsor a U.S. qualified and various U.S. and non-U.S. nonqualified defined benefit pension plans covering employees who meet specified eligibility requirements. These subsidiaries also provide certain postemployment benefits and certain postretirement medical and life insurance benefits for U.S. and non-U.S. retired employees. The components of net periodic benefit costs, reported in other expenses, were as follows: Three Months 2020 2019 Pension Benefits Other Postretirement Benefits Pension Benefits Other Postretirement Benefits (In millions) Service costs $ 62 $ 1 $ 58 $ 1 Interest costs 89 10 104 13 Expected return on plan assets (132 ) (15 ) (122 ) (16 ) Amortization of net actuarial (gains) losses 45 (19 ) 48 (12 ) Amortization of prior service costs (credit) (4 ) (1 ) (4 ) (3 ) Net periodic benefit costs (credit) $ 60 $ (24 ) $ 84 $ (17 ) |
Income Tax
Income Tax | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Tax | 13. Income Tax For the three months ended March 31, 2020 , the effective tax rate on income (loss) before provision for income tax was 22% . The Company’s effective tax rate for the three months ended March 31, 2020 differed from the U.S. statutory rate primarily due to tax charges from foreign earnings taxed at different rates than the U.S. statutory rate, partially offset by tax benefits related to non-taxable investment income, tax credits and the finalization of bankruptcy proceedings for a leveraged lease investment. For the three months ended March 31, 2019 , the effective tax rate on income (loss) before provision for income tax and the U.S. statutory rate were both 21% . The Company’s effective tax rate for the three months ended March 31, 2019 includes tax benefits related to non-taxable investment income and tax credits, largely offset by the tax charges from foreign earnings taxed at different rates than the U.S. statutory rate. |
Earnings Per Common Share
Earnings Per Common Share | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | 14. Earnings Per Common Share The following table presents the weighted average shares, basic earnings per common share and diluted earnings per common share: Three Months 2020 2019 (In millions, except per share data) Weighted Average Shares: Weighted average common stock outstanding - basic 914.1 956.5 Incremental common shares from assumed exercise or issuance of stock-based awards 5.9 6.8 Weighted average common stock outstanding - diluted 920.0 963.3 Net Income (Loss): Net income (loss) $ 4,401 $ 1,385 Less: Net income (loss) attributable to noncontrolling interests 3 4 Less: Preferred stock dividends 32 32 Net income (loss) available to MetLife, Inc.’s common shareholders $ 4,366 $ 1,349 Basic $ 4.78 $ 1.41 Diluted $ 4.75 $ 1.40 |
Contingencies, Commitments and
Contingencies, Commitments and Guarantees | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies, Commitments and Guarantees | 15. Contingencies, Commitments and Guarantees Contingencies Litigation The Company is a defendant in a large number of litigation matters. Putative or certified class action litigation and other litigation and claims and assessments against the Company, in addition to those discussed below and those otherwise provided for in the Company’s consolidated financial statements, have arisen in the course of the Company’s business, including, but not limited to, in connection with its activities as an insurer, mortgage lending bank, employer, investor, investment advisor, broker-dealer, and taxpayer. The Company also receives and responds to subpoenas or other inquiries seeking a broad range of information from state regulators, including state insurance commissioners; state attorneys general or other state governmental authorities; federal regulators, including the U.S. Securities and Exchange Commission; federal governmental authorities, including congressional committees; and the Financial Industry Regulatory Authority, as well as from local and national regulators and government authorities in jurisdictions outside the United States where the Company conducts business. The issues involved in information requests and regulatory matters vary widely, but can include inquiries or investigations concerning the Company’s compliance with applicable insurance and other laws and regulations. The Company cooperates in these inquiries. In some of the matters, very large and/or indeterminate amounts, including punitive and treble damages, are sought. Modern pleading practice in the U.S. permits considerable variation in the assertion of monetary damages or other relief. Jurisdictions may permit claimants not to specify the monetary damages sought or may permit claimants to state only that the amount sought is sufficient to invoke the jurisdiction of the trial court. In addition, jurisdictions may permit plaintiffs to allege monetary damages in amounts well exceeding reasonably possible verdicts in the jurisdiction for similar matters. This variability in pleadings, together with the actual experience of the Company in litigating or resolving through settlement numerous claims over an extended period of time, demonstrates to management that the monetary relief which may be specified in a lawsuit or claim bears little relevance to its merits or disposition value. It is not possible to predict the ultimate outcome of all pending investigations and legal proceedings. The Company establishes liabilities for litigation and regulatory loss contingencies when it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. Liabilities have been established for a number of the matters noted below. It is possible that some of the matters could require the Company to pay damages or make other expenditures or establish accruals in amounts that could not be reasonably estimated at March 31, 2020 . While the potential future charges could be material in the particular quarterly or annual periods in which they are recorded, based on information currently known to management, management does not believe any such charges are likely to have a material effect on the Company’s financial position. Given the large and/or indeterminate amounts sought in certain of these matters and the inherent unpredictability of litigation, it is possible that an adverse outcome in certain matters could, from time to time, have a material effect on the Company’s consolidated net income or cash flows in particular quarterly or annual periods. Matters as to Which an Estimate Can Be Made For some of the matters disclosed below, the Company is able to estimate a reasonably possible range of loss. For matters where a loss is believed to be reasonably possible, but not probable, the Company has not made an accrual. As of March 31, 2020 , the Company estimates the aggregate range of reasonably possible losses in excess of amounts accrued for these matters to be $0 to $250 million . Matters as to Which an Estimate Cannot Be Made For other matters disclosed below, the Company is not currently able to estimate the reasonably possible loss or range of loss. The Company is often unable to estimate the possible loss or range of loss until developments in such matters have provided sufficient information to support an assessment of the range of possible loss, such as quantification of a damage demand from plaintiffs, discovery from other parties and investigation of factual allegations, rulings by the court on motions or appeals, analysis by experts, and the progress of settlement negotiations. On a quarterly and annual basis, the Company reviews relevant information with respect to litigation contingencies and updates its accruals, disclosures and estimates of reasonably possible losses or ranges of loss based on such reviews. Asbestos-Related Claims MLIC is and has been a defendant in a large number of asbestos-related suits filed primarily in state courts. These suits principally allege that the plaintiff or plaintiffs suffered personal injury resulting from exposure to asbestos and seek both actual and punitive damages. MLIC has never engaged in the business of manufacturing, producing, distributing or selling asbestos or asbestos-containing products nor has MLIC issued liability or workers’ compensation insurance to companies in the business of manufacturing, producing, distributing or selling asbestos or asbestos-containing products. The lawsuits principally have focused on allegations with respect to certain research, publication and other activities of one or more of MLIC’s employees during the period from the 1920’s through approximately the 1950’s and allege that MLIC learned or should have learned of certain health risks posed by asbestos and, among other things, improperly publicized or failed to disclose those health risks. MLIC believes that it should not have legal liability in these cases. The outcome of most asbestos litigation matters, however, is uncertain and can be impacted by numerous variables, including differences in legal rulings in various jurisdictions, the nature of the alleged injury and factors unrelated to the ultimate legal merit of the claims asserted against MLIC. MLIC employs a number of resolution strategies to manage its asbestos loss exposure, including seeking resolution of pending litigation by judicial rulings and settling individual or groups of claims or lawsuits under appropriate circumstances. Claims asserted against MLIC have included negligence, intentional tort and conspiracy concerning the health risks associated with asbestos. MLIC’s defenses (beyond denial of certain factual allegations) include that: (i) MLIC owed no duty to the plaintiffs— it had no special relationship with the plaintiffs and did not manufacture, produce, distribute or sell the asbestos products that allegedly injured plaintiffs, (ii) plaintiffs did not rely on any actions of MLIC, (iii) MLIC’s conduct was not the cause of the plaintiffs’ injuries, (iv) plaintiffs’ exposure occurred after the dangers of asbestos were known, and (v) the applicable time with respect to filing suit has expired. During the course of the litigation, certain trial courts have granted motions dismissing claims against MLIC, while other trial courts have denied MLIC’s motions. There can be no assurance that MLIC will receive favorable decisions on motions in the future. While most cases brought to date have settled, MLIC intends to continue to defend aggressively against claims based on asbestos exposure, including defending claims at trials. As reported in the 2019 Annual Report, MLIC received approximately 3,187 asbestos-related claims in 2019 . For the three months ended March 31, 2020 and 2019 , MLIC received approximately 596 and 843 new asbestos-related claims, respectively. See Note 21 of the Notes to the Consolidated Financial Statements included in the 2019 Annual Report for historical information concerning asbestos claims and MLIC’s update in its recorded liability at December 31, 2019. The number of asbestos cases that may be brought, the aggregate amount of any liability that MLIC may incur, and the total amount paid in settlements in any given year are uncertain and may vary significantly from year to year. The ability of MLIC to estimate its ultimate asbestos exposure is subject to considerable uncertainty, and the conditions impacting its liability can be dynamic and subject to change. The availability of reliable data is limited and it is difficult to predict the numerous variables that can affect liability estimates, including the number of future claims, the cost to resolve claims, the disease mix and severity of disease in pending and future claims, the impact of the number of new claims filed in a particular jurisdiction and variations in the law in the jurisdictions in which claims are filed, the possible impact of tort reform efforts, the willingness of courts to allow plaintiffs to pursue claims against MLIC when exposure to asbestos took place after the dangers of asbestos exposure were well known, and the impact of any possible future adverse verdicts and their amounts. The ability to make estimates regarding ultimate asbestos exposure declines significantly as the estimates relate to years further in the future. In the Company’s judgment, there is a future point after which losses cease to be probable and reasonably estimable. It is reasonably possible that the Company’s total exposure to asbestos claims may be materially greater than the asbestos liability currently accrued and that future charges to income may be necessary. While the potential future charges could be material in the particular quarterly or annual periods in which they are recorded, based on information currently known by management, management does not believe any such charges are likely to have a material effect on the Company’s financial position. The Company believes adequate provision has been made in its consolidated financial statements for all probable and reasonably estimable losses for asbestos-related claims. MLIC’s recorded asbestos liability is based on its estimation of the following elements, as informed by the facts presently known to it, its understanding of current law and its past experiences: (i) the probable and reasonably estimable liability for asbestos claims already asserted against MLIC, including claims settled but not yet paid, (ii) the probable and reasonably estimable liability for asbestos claims not yet asserted against MLIC, but which MLIC believes are reasonably probable of assertion, and (iii) the legal defense costs associated with the foregoing claims. Significant assumptions underlying MLIC’s analysis of the adequacy of its recorded liability with respect to asbestos litigation include: (i) the number of future claims, (ii) the cost to resolve claims, and (iii) the cost to defend claims. MLIC reevaluates on a quarterly and annual basis its exposure from asbestos litigation, including studying its claims experience, reviewing external literature regarding asbestos claims experience in the United States, assessing relevant trends impacting asbestos liability and considering numerous variables that can affect its asbestos liability exposure on an overall or per claim basis. These variables include bankruptcies of other companies involved in asbestos litigation, legislative and judicial developments, the number of pending claims involving serious disease, the number of new claims filed against it and other defendants and the jurisdictions in which claims are pending. Based upon its regular reevaluation of its exposure from asbestos litigation, MLIC has updated its liability analysis for asbestos-related claims through March 31, 2020 . City of Westland Police and Fire Retirement System v. MetLife, Inc., et. al. (S.D.N.Y., filed January 12, 2012) Plaintiff filed this class action on behalf of a class of persons who either purchased MetLife, Inc. common shares between February 9, 2011, and October 6, 2011, or purchased or acquired MetLife, Inc. common stock in the Company’s August 3, 2010 offering or the Company’s March 4, 2011 offering. Plaintiff alleges that MetLife, Inc. and several current and former directors and executive officers of MetLife, Inc. violated the Securities Act of 1933, as well as the Exchange Act and Rule 10b-5 promulgated thereunder by issuing, or causing MetLife, Inc. to issue, materially false and misleading statements concerning MetLife, Inc.’s potential liability for millions of dollars in insurance benefits that should have purportedly been paid to beneficiaries or escheated to the states. Plaintiff seeks unspecified compensatory damages and other relief. The defendants intend to defend this action vigorously. Newman v. Metropolitan Life Insurance Company (N.D. Ill., filed March 23, 2016) Plaintiff filed this putative class action alleging causes of action for breach of contract, fraud, and violations of the Illinois Consumer Fraud and Deceptive Business Practices Act, on behalf of herself and all persons over age 65 who selected a Reduced Pay at Age 65 payment feature on their long-term care insurance policies and whose premium rates were increased after age 65. Plaintiff seeks unspecified compensatory, statutory and punitive damages, as well as recessionary and injunctive relief. On April 12, 2017, the court granted MLIC’s motion to dismiss the action. Plaintiff appealed this ruling and the United States Court of Appeals for the Seventh Circuit reversed and remanded the case to the district court for further proceedings. On February 20, 2020, the district court approved a nationwide class settlement of the case. The Company accrued the full amount of the expected settlement payment in prior periods. Julian & McKinney v. Metropolitan Life Insurance Company (S.D.N.Y., filed February 9, 2017) Plaintiffs filed this putative class and collective action on behalf of themselves and all current and former long-term disability (“LTD”) claims specialists between February 2011 and the present for alleged wage and hour violations under the Fair Labor Standards Act, the New York Labor Law, and the Connecticut Minimum Wage Act. The suit alleges that MLIC improperly reclassified the plaintiffs and similarly situated LTD claims specialists from non-exempt to exempt from overtime pay in November 2013. As a result, they and members of the putative class were no longer eligible for overtime pay even though they allege they continued to work more than 40 hours per week. Plaintiffs seek unspecified compensatory and punitive damages, as well as other relief. On March 22, 2018, the court conditionally certified the case as a collective action, requiring that notice be mailed to LTD claims specialists who worked for MLIC from February 8, 2014 to the present. MLIC intends to defend this action vigorously. Total Asset Recovery Services, LLC. v. MetLife, Inc., et al. (Supreme Court of the State of New York, County of New York, filed December 27, 2017) Total Asset Recovery Services (“The Relator”) brought an action under the qui tam provision of the New York False Claims Act (the “Act”) on behalf of itself and the State of New York. The Relator originally filed this action under seal in 2010, and the complaint was unsealed on December 19, 2017. The Relator alleges that MetLife, Inc., MLIC, and several other insurance companies violated the Act by filing false unclaimed property reports with the State of New York from 1986 to 2017, to avoid having to escheat the proceeds of more than 25,000 life insurance policies, including policies for which the defendants escheated funds as part of their demutualizations in the late 1990s. The Relator seeks treble damages and other relief. On April 3, 2019, the court granted MetLife, Inc.’s and MLIC’s motion to dismiss and dismissed the complaint in its entirety. The Relator filed an appeal with the Appellate Division of the New York State Supreme Court, First Division. Matters Related to Group Annuity Benefits and Assumed Variable Annuity Guarantee Reserves In 2018, the Company announced that it identified two material weaknesses in its internal control over financial reporting related to the practices and procedures for estimating reserves for certain group annuity benefits and the calculation of reserves associated with certain variable annuity guarantees assumed from the former operating joint venture in Japan. Several regulators have made inquiries into these issues and it is possible that other jurisdictions may pursue similar investigations or inquiries. The Company is exposed to lawsuits, and could be exposed to additional legal actions relating to these issues. These may result in payments, including damages, fines, penalties, interest and other amounts assessed or awarded by courts or regulatory authorities under applicable escheat, tax, securities, Employee Retirement Income Security Act of 1974, or other laws or regulations. The Company could incur significant costs in connection with these actions. Litigation Matters Parchmann v. MetLife, Inc., et. al. (E.D.N.Y., filed February 5, 2018) Plaintiff filed this putative class action seeking to represent a class of persons who purchased MetLife, Inc. common stock from February 27, 2013 through January 29, 2018. Plaintiff alleges that MetLife, Inc., its Chief Executive Officer and Chairman of the Board, and its Chief Financial Officer violated Section 10(b) of the Exchange Act and Rule 10b-5 promulgated thereunder by issuing materially false and/or misleading financial statements. Plaintiff alleges that MetLife’s practices and procedures for estimating reserves for certain group annuity benefits were inadequate, and that MetLife had inadequate internal control over financial reporting. Plaintiff seeks unspecified compensatory damages and other relief. Defendants intend to defend this action vigorously. Atkins et. al. v. MetLife, Inc., et. al. (D.Nev., filed November 18, 2019) Plaintiffs filed this putative class action on behalf of all persons due benefits under group annuity contracts but who did not receive the entire amount to which they were entitled. Plaintiffs assert claims for breach of contract, breach of fiduciary duty, breach of implied covenant of good faith and fair dealing, unjust enrichment, and conversion based on allegations that the defendants failed to timely pay annuity benefits to certain group annuitants. Plaintiffs seek declaratory and injunctive relief, as well as unspecified compensatory and punitive damages, and other relief. On April 17, 2020, the parties filed a stipulation of voluntarily dismissal of the action without prejudice. Derivative Actions and Demands Shareholders, seeking to sue derivatively on behalf of MetLife, Inc., commenced three separate actions against certain current and former members of the MetLife, Inc. Board of Directors and/or certain current and former officers of MetLife, Inc., alleging that, among other things, they breached their fiduciary and other duties to the Company. In Kates v. Kandarian, et al. (E.D.N.Y., filed January 18, 2019, transferred to D. Del. July 8, 2019) and Felt, et al. v. Grise, et al. (D. Del., filed April 29, 2019), plaintiffs allege that the defendants disseminated or approved public statements that failed to disclose that MetLife’s practices and procedures for estimating reserves for certain group annuity benefits were inadequate and that MetLife had inadequate internal control over financial reporting. In Lifschitz v. Kandarian, et al. (Del. Ch., filed June 19, 2019), plaintiff alleges that the MetLife, Inc. Board of Directors knew or should have known that MetLife’s practices and procedures for estimating reserves for certain group annuity benefits were inadequate. Felt and Lifschitz have been consolidated in the Court of Chancery in Delaware under the caption In re: MetLife, Inc. Derivative Litigation . In all of these actions, plaintiffs allege that because of the defendants’ breaches of duty, MetLife, Inc. has incurred damage to its reputation and has suffered other unspecified damages. The defendants intend to defend these actions vigorously. The MetLife, Inc. Board of Directors received six letters, dated March 28, 2018, May 11, 2018, July 16, 2018, December 20, 2018, February 5, 2019, and April 7, 2020, written on behalf of individual stockholders, demanding that MetLife, Inc. take action against current and former directors and officers for alleged breaches of fiduciary duty and/or investigate, remediate, and recover damages allegedly suffered by the Company as a result of (i) the Company’s allegedly inadequate practices and procedures for estimating reserves for certain group annuity benefits, (ii) the Company’s allegedly inadequate internal controls over financial reporting and corporate governance practices and procedures, and (iii) the alleged dissemination of false or misleading information related to these issues. The MetLife, Inc. Board of Directors appointed a special committee to investigate the allegations set forth in these six letters. Commitments Mortgage Loan Commitments The Company commits to lend funds under mortgage loan commitments. The amounts of these mortgage loan commitments were $2.7 billion and $4.1 billion at March 31, 2020 and December 31, 2019 , respectively. Commitments to Fund Partnership Investments, Bank Credit Facilities, Bridge Loans and Private Corporate Bond Investments The Company commits to fund partnership investments and to lend funds under bank credit facilities, bridge loans and private corporate bond investments. The amounts of these unfunded commitments were $8.0 billion and $8.1 billion at March 31, 2020 and December 31, 2019 , respectively. Guarantees In the normal course of its business, the Company has provided certain indemnities, guarantees and commitments to third parties such that it may be required to make payments now or in the future. In the context of acquisition, disposition, investment and other transactions, the Company has provided indemnities and guarantees, including those related to tax, environmental and other specific liabilities and other indemnities and guarantees that are triggered by, among other things, breaches of representations, warranties or covenants provided by the Company. In addition, in the normal course of business, the Company provides indemnifications to counterparties in contracts with triggers similar to the foregoing, as well as for certain other liabilities, such as third-party lawsuits. These obligations are often subject to time limitations that vary in duration, including contractual limitations and those that arise by operation of law, such as applicable statutes of limitation. In some cases, the maximum potential obligation under the indemnities and guarantees is subject to a contractual limitation ranging from less than $1 million to $329 million , with a cumulative maximum of $528 million , while in other cases such limitations are not specified or applicable. Since certain of these obligations are not subject to limitations, the Company does not believe that it is possible to determine the maximum potential amount that could become due under these guarantees in the future. Management believes that it is unlikely the Company will have to make any material payments under these indemnities, guarantees, or commitments. In addition, the Company indemnifies its directors and officers as provided in its charters and by-laws. Also, the Company indemnifies its agents for liabilities incurred as a result of their representation of the Company’s interests. Since these indemnities are generally not subject to limitation with respect to duration or amount, the Company does not believe that it is possible to determine the maximum potential amount that could become due under these indemnities in the future. The Company also has minimum fund yield requirements on certain pension funds. Since these guarantees are not subject to limitation with respect to duration or amount, the Company does not believe that it is possible to determine the maximum potential amount that could become due under these guarantees in the future. The Company’s recorded liabilities were $6 million at both March 31, 2020 and December 31, 2019 , for indemnities, guarantees and commitments. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Event | 16. Subsequent Events Common Stock Dividend On April 28, 2020 , the MetLife, Inc. Board of Directors declared a second quarter 2020 common stock dividend of $0.46 per share payable on June 12, 2020 to shareholders of record as of May 8, 2020 . The Company estimates that the aggregate dividend payment will be $419 million . |
Business, Basis of Presentati_2
Business, Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Use of Estimates | The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to adopt accounting policies and make estimates and assumptions that affect amounts reported on the interim condensed consolidated financial statements. In applying these policies and estimates, management makes subjective and complex judgments that frequently require assumptions about matters that are inherently uncertain, including the novel coronavirus COVID-19 pandemic (“COVID-19 Pandemic”). Many of these policies, estimates and related judgments are common in the insurance and financial services industries; others are specific to the Company’s business and operations. Actual results could differ from these estimates. |
Consolidation of Subsidiaries | Consolidation The accompanying interim condensed consolidated financial statements include the accounts of MetLife, Inc. and its subsidiaries, as well as partnerships and joint ventures in which the Company has control, and variable interest entities (“VIEs”) for which the Company is the primary beneficiary. Intercompany accounts and transactions have been eliminated. The Company uses the equity method of accounting or the fair value option (“FVO”) for real estate joint ventures and other limited partnership interests (“investee”) when it has more than a minor ownership interest or more than a minor influence over the investee’s operations. The Company generally recognizes its share of the investee’s earnings in net investment income on a three-month lag in instances where the investee’s financial information is not sufficiently timely or when the investee’s reporting period differs from the Company’s reporting period. The accompanying interim condensed consolidated financial statements are unaudited and reflect all adjustments (including normal recurring adjustments) necessary to present fairly the financial position, results of operations and cash flows for the interim periods presented in conformity with GAAP. Interim results are not necessarily indicative of full year performance. The December 31, 2019 consolidated balance sheet data was derived from audited consolidated financial statements included in MetLife, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2019 (the “2019 Annual Report”), which include all disclosures required by GAAP. Therefore, these interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements of the Company included in the 2019 Annual Report. Closed block assets, liabilities, revenues and expenses are combined on a line-by-line basis with the assets, liabilities, revenues and expenses outside the closed block based on the nature of the particular item. |
Reclassification | Reclassifications Certain amounts in the prior year periods’ interim condensed consolidated financial statements and related footnotes thereto have been reclassified to conform to the 2020 presentation as discussed throughout the Notes to the Interim Condensed Consolidated Financial Statements. |
New Accounting Pronouncements | Summary of Significant Accounting Policies The following are the Company’s significant accounting policies updated for the January 1, 2020 adoption of new accounting pronouncements related to investments and goodwill. Net Investment Income and Net Investment Gains (Losses) Income from investments is reported within net investment income, unless otherwise stated herein. Gains and losses on sales of investments, intent-to-sell impairments, as well as provisions for credit loss in the allowance for credit loss (“ACL”) on fixed maturity securities available-for-sale (“AFS”), mortgage loans and investments in leases and subsequent changes in the ACL or for impairment losses on real estate investments, are reported within net investment gains (losses), unless otherwise stated herein. Accrued investment income is presented separately on the consolidated balance sheet and excluded from the carrying value of the related investments, primarily fixed maturity securities and mortgage loans. Fixed Maturity Securities The majority of the Company’s fixed maturity securities are classified as AFS and are reported at their estimated fair value. Unrealized investment gains and losses on these securities are recorded as a separate component of other comprehensive income (loss) (“OCI”), net of policy-related amounts and deferred income taxes. All security transactions are recorded on a trade date basis. Sales of securities are determined on a specific identification basis. Interest income and prepayment fees are recognized when earned. Interest income is recognized using an effective yield method giving effect to amortization of premium and accretion of discount and is based on the estimated economic life of the securities, which for mortgage-backed and asset-backed securities considers the estimated timing and amount of prepayments of the underlying loans. See also Note 8 “ — Fixed Maturity Securities AFS — Methodology for Amortization of Premium and Accretion of Discount on Structured Products” in the Notes to the Consolidated Financial Statements included in the 2019 Annual Report. The amortization of premium and accretion of discount also takes into consideration call and maturity dates. The Company periodically evaluates its fixed maturity securities AFS for impairment. The assessment of whether impairments have occurred is based on management’s case-by-case evaluation of the underlying reasons for the decline in estimated fair value as described in Note 6 “— Fixed Maturity Securities Available-for-Sale — Evaluation of Fixed Maturity Securities AFS for Credit Loss.” Prior to January 1, 2020, the Company applied other than temporary impairment (“OTTI”) guidance for securities in an unrealized loss position. An OTTI was recognized in earnings within net investment gains (losses) when it was anticipated that the amortized cost would not be recovered. When either: (i) the Company had the intent to sell the security, or (ii) it was more likely than not that the Company would be required to sell the security before recovery, the reduction of amortized cost and the OTTI recognized in earnings was the entire difference between the security’s amortized cost and estimated fair value. If neither of these conditions existed, the difference between the amortized cost of the security and the present value of projected future cash flows expected to be collected was recognized as a reduction of amortized cost and an OTTI in earnings. If the estimated fair value was less than the present value of projected future cash flows expected to be collected, this portion of OTTI related to other-than-credit factors was recorded in OCI. On January 1, 2020, the Company adopted accounting standards update (“ASU”) 2016-13, Financial Instruments-Credit Losses (Topic 326) Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”) using a modified retrospective approach. Under ASU 2016-13, for securities in an unrealized loss position, a credit loss is recognized in earnings within net investment gains (losses) when it is anticipated that the amortized cost will not be recovered. When either: (i) the Company has the intent to sell the security, or (ii) it is more likely than not that the Company will be required to sell the security before recovery, the reduction of amortized cost and the loss recognized in earnings is the entire difference between the security’s amortized cost and estimated fair value. If neither of these conditions exists, the difference between the amortized cost of the security and the present value of projected future cash flows expected to be collected is recognized as a “credit loss” by establishing an ACL with a corresponding charge to earnings in net investment gains (losses). However, the ACL is limited by the amount that the fair value is less than the amortized cost. This limitation is known as the “fair value floor”. If the estimated fair value is less than the present value of projected future cash flows expected to be collected, this portion of the decline in value related to other-than-credit factors (“noncredit loss”) is recorded in OCI. The new guidance also replaces the model for purchased credit impaired (“PCI”) fixed maturity securities AFS and financing receivables and requires the establishment of an ACL at acquisition, which is added to the purchase price to establish the initial amortized cost of the investment. Upon adoption, the replacement of the PCI model did not have a material impact on the Company’s interim condensed consolidated financial statements. Mortgage Loans ASU 2016-13 requires an ACL based on the expectation of lifetime credit loss on financing receivables carried at amortized cost, including, but not limited to, mortgage loans and leveraged and direct financing leases, as described in Note 6 . The Company disaggregates its mortgage loan investments into three portfolio segments: commercial, agricultural and residential. Also included in commercial mortgage loans are revolving line of credit loans collateralized by commercial properties. The accounting policies that are applicable to all portfolio segments are presented below and the accounting policies related to each of the portfolio segments are included in Note 6 . Mortgage loans are stated at unpaid principal balance, adjusted for any unamortized premium or discount, deferred fees or expenses, and are net of ACL. Interest income and prepayment fees are recognized when earned. Interest income is recognized using an effective yield method giving effect to amortization of premium and accretion of discount. The Company ceases to accrue interest when the collection of interest is not considered probable, which is based on a current evaluation of the status of the borrower including the number of days past due. When a loan is placed on non-accrual status, uncollected past due accrued interest income that is considered uncollectible is charged-off against net investment income. Generally, the accrual of interest income resumes after all delinquent amounts are paid and management believes all future principal and interest payments will be collected. The Company records cash receipts on non-accruing loans in accordance with the loan agreement. The Company records charge-offs upon the realization of a credit loss, typically through foreclosure or after a decision is made to sell a loan, or for residential loans when, after considering the individual consumer’s financial status, management believes amounts are not collectible. Gain or loss upon charge-off is recorded, net of previously established ACL, in net investment gains (losses). Cash recoveries on principal amounts previously charged-off are generally recorded in net investment gains. Also included in mortgage loans are residential mortgage loans for which the FVO was elected, and which are stated at estimated fair value. Changes in estimated fair value are recognized in net investment income. Goodwill On January 1, 2020, the Company adopted ASU 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment , using a prospective transition approach for goodwill impairment tests subsequent to January 1, 2020. As a result of the new guidance, Step 2 of the goodwill impairment test (measuring a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying value of that goodwill) has been eliminated and the Company is only required to perform a one-step goodwill impairment test as described below. Goodwill represents the future economic benefits arising from net assets acquired in a business combination that are not individually identified and recognized. Goodwill is calculated as the excess of cost over the estimated fair value of such net assets acquired, is not amortized, and is tested for impairment based on a fair value approach at least annually, or more frequently if events or circumstances indicate that there may be justification for conducting an interim test. The Company performs its annual goodwill impairment testing during the third quarter based upon data as of the close of the second quarter. The impairment test is performed at the reporting unit level, which is the operating segment or a business one level below the operating segment, if discrete financial information is prepared and regularly reviewed by management at that level. For purposes of goodwill impairment testing, if the carrying value of a reporting unit exceeds its estimated fair value, an impairment charge would be recognized for the amount by which the carrying value exceeds the reporting unit’s fair value; however, the loss recognized would not exceed the total amount of goodwill allocated to that reporting unit. Additionally, the Company will consider income tax effects from any tax deductible goodwill on the carrying value of the reporting unit when measuring the goodwill impairment loss, if applicable. On an ongoing basis, the Company evaluates potential triggering events that may affect the estimated fair value of the Company’s reporting units to assess whether any goodwill impairment exists. Deteriorating or adverse market conditions for certain reporting units may have a significant impact on the estimated fair value of these reporting units and could result in future impairments of goodwill. In the first quarter of 2020, the Company performed interim goodwill impairment testing on all of its reporting units due to the recent economic impacts caused by the COVID-19 Pandemic. The interim goodwill impairment testing was conducted by measuring the estimated fair value of the reporting unit and comparing such estimated fair value to the carrying value of the reporting unit. The result of the interim goodwill impairment testing was that the estimated fair value exceeded the carrying value of its reporting units and the Company determined that its goodwill in the current quarter was not impaired, although the amount of excess of estimated fair value above the carrying value for the reporting units has decreased significantly since the previous annual test. The excess of estimated fair value over carrying value in the Asia and EMEA reporting units has decreased below what would be considered a substantial margin . Recent Accounting Pronouncements Changes to GAAP are established by the Financial Accounting Standards Board (“FASB”) in the form of ASUs to the FASB Accounting Standards Codification. The Company considers the applicability and impact of all ASUs. The following tables provide a description of new ASUs issued by the FASB and the impact of the adoption on the Company’s consolidated financial statements. Adoption of New Accounting Pronouncements Except as noted below, the ASUs adopted by the Company effective January 1, 2020 did not have a material impact on its consolidated financial statements or disclosures. Standard Description Effective Date and Method of Adoption Impact on Financial Statements ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting The new guidance provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The expedients and exceptions provided by the amendments do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, with certain exceptions. Effective for contract modifications made between March 12, 2020 and December 31, 2022 The new guidance will reduce the operational and financial impacts of contract modifications that replace a reference rate, such as London InterBank Offered Rate (LIBOR), affected by reference rate reform. The adoption of the new guidance did not have an impact on the Company’s interim condensed consolidated financial statements. The Company will continue to evaluate the impacts of reference rate reform on contract modifications and hedging relationships through December 31, 2022. ASU 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment The new guidance simplifies the former two-step goodwill impairment test by eliminating Step 2 of the test. The new guidance requires a one-step impairment test in which an entity compares the fair value of a reporting unit with its carrying amount and recognizes an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value, if any. January 1, 2020, the Company adopted, using a prospective approach. The adoption of the new guidance reduced the complexity involved with the evaluation of goodwill for impairment. The impact of the new guidance will depend on the outcomes of future goodwill impairment tests. ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, as clarified and amended by ASU 2018-19 , Codification Improvements to Topic 326, Financial Instruments-Credit Losses; ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments-Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments; ASU 2019-05 , Financial Instruments-Credit Losses (Topic 326): Targeted Transition Relief; and ASU 2019-11, Codification Improvements to Topic 326, Financial Instruments-Credit Losses This new guidance requires an ACL based on the expectation of lifetime credit loss on financing receivables carried at amortized cost, including, but not limited to, mortgage loans, premium receivables, reinsurance receivables and leveraged and direct financing leases. The former model for OTTI on fixed maturity securities AFS has been modified and requires the recording of an ACL instead of a reduction of the amortized cost. Any improvements in expected future cash flows will no longer be reflected as a prospective yield adjustment, but instead will be reflected as a reduction in the ACL. The new guidance also replaces the model for PCI fixed maturity securities AFS and financing receivables and requires the establishment of an ACL at acquisition, which is added to the purchase price to establish the initial amortized cost of the investment. The new guidance also requires enhanced disclosures. January 1, 2020 for substantially all financial assets, the Company adopted using a modified retrospective approach. For previously impaired fixed maturity securities AFS and certain fixed maturity securities AFS acquired with evidence of credit quality deterioration since origination, the Company adopted prospectively on January 1, 2020. The adoption of this guidance resulted in a $121 million, net of income tax, decrease to retained earnings primarily related to the Company’s mortgage loan investments. The Company has included the required disclosures within Note 6. |
Investments | Evaluation and Measurement Methodologies Management considers a wide range of factors about the security issuer and uses its best judgment in evaluating the cause of the decline in the estimated fair value of the security and in assessing the prospects for near-term recovery. Inherent in management’s evaluation of the security are assumptions and estimates about the operations of the issuer and its future earnings potential. Considerations used in the credit loss evaluation process include, but are not limited to: (i) the extent to which the estimated fair value has been below amortized cost, (ii) adverse conditions specifically related to a security, an industry sector or sub-sector, or an economically depressed geographic area, adverse change in the financial condition of the issuer of the security, changes in technology, discontinuance of a segment of the business that may affect future earnings, and changes in the quality of credit enhancement, (iii) payment structure of the security and likelihood of the issuer being able to make payments, (iv) failure of the issuer to make scheduled interest and principal payments, (v) the issuer, or series of issuers or an industry has suffered a catastrophic loss or has exhausted natural resources, (vi) whether the Company has the intent to sell or will more likely than not be required to sell a particular security before the decline in estimated fair value below amortized cost recovers, (vii) with respect to Structured Products, changes in forecasted cash flows after considering the changes in the financial condition of the underlying loan obligors and quality of underlying collateral, expected prepayment speeds, current and forecasted loss severity, consideration of the payment terms of the underlying assets backing a particular security, and the payment priority within the tranche structure of the security, (viii) changes in the rating of the security by a rating agency, and (ix) other subjective factors, including concentrations and information obtained from regulators. The methodology and significant inputs used to determine the amount of credit loss are as follows: • The Company calculates the recovery value by performing a discounted cash flow analysis based on the present value of future cash flows. The discount rate is generally the effective interest rate of the security at the time of purchase for fixed-rate securities and the spot rate at the date of evaluation of credit loss for floating-rate securities. • When determining collectability and the period over which value is expected to recover, the Company applies considerations utilized in its overall credit loss evaluation process which incorporates information regarding the specific security, fundamentals of the industry and geographic area in which the security issuer operates, and overall macroeconomic conditions. Projected future cash flows are estimated using assumptions derived from management’s single best estimate, the most likely outcome in a range of possible outcomes, after giving consideration to a variety of variables that include, but are not limited to: payment terms of the security; the likelihood that the issuer can service the interest and principal payments; the quality and amount of any credit enhancements; the security’s position within the capital structure of the issuer; possible corporate restructurings or asset sales by the issuer; any private and public sector programs to restructure foreign government securities and municipals; and changes to the rating of the security or the issuer by rating agencies. • Additional considerations are made when assessing the unique features that apply to certain Structured Products including, but not limited to: the quality of underlying collateral, historical performance of the underlying loan obligors, historical rent and vacancy levels, changes in the financial condition of the underlying loan obligors, expected prepayment speeds, current and forecasted loss severity, consideration of the payment terms of the underlying loans or assets backing a particular security, changes in the quality of credit enhancement and the payment priority within the tranche structure of the security. With respect to securities that have attributes of debt and equity (“perpetual hybrid securities”), consideration is given in the credit loss analysis as to whether there has been any deterioration in the credit of the issuer and the likelihood of recovery in value of the securities that are in a severe unrealized loss position. Consideration is also given as to whether any perpetual hybrid securities with an unrealized loss, regardless of credit rating, have deferred any dividend payments. After the adoption of new guidance on January 1, 2020, in periods subsequent to the recognition of an initial ACL on a security, the Company reassesses credit loss quarterly. Subsequent increases or decreases in the expected cash flow from the security result in corresponding decreases or increases in the ACL which are recorded within net investment gains (losses); however, the previously recorded ACL is not reduced to an amount below zero. Full or partial write-offs are deducted from the ACL in the period the security, or a portion, is considered uncollectible. Recoveries of amounts previously written off are recorded to the ACL in the period received. When the Company has the intent to sell the security or it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost, any ACL is written off and the amortized cost is written down to estimated fair value through a charge within net investment gains (losses), which becomes the new amortized cost of the security. In accordance with the previous guidance, methodologies to evaluate the recoverability of a security in an unrealized loss position were similar, except: (i) the length of time estimated fair value had been below amortized cost was considered for securities, and (ii) for non-functional currency denominated securities, the impact from weakening non-functional currencies on securities that were near maturity was considered in the evaluation. In addition, measurement methodologies were similar, except: (i) a fair value floor was not utilized to limit the credit loss recognized, (ii) the amortized cost of securities was adjusted for the OTTI to the expected recoverable amount and an ACL was not utilized, (iii) subsequent to a credit loss being recognized, increases in expected cash flows from the security did not result in an immediate increase in valuation recognized in earnings through net investment gains (losses) from reduction of the ACL instead such increases in value were recorded as unrealized gains in OCI, and (iv) in periods subsequent to the recognition of OTTI on a security, the Company accounted for the impaired security as if it had been purchased on the measurement date of the impairment; accordingly, the discount (or reduced premium) based on the new cost basis was accreted over the remaining term of the security in a prospective manner based on the amount and timing of estimated future cash flows. Actual maturities may differ from contractual maturities due to the exercise of call or prepayment options. Fixed maturity securities AFS not due at a single maturity date have been presented in the year of final contractual maturity. Structured Products are shown separately, as they are not due at a single maturity. Maturities of Fixed Maturity Securities AFS Allowance for Credit Loss Methodology After the adoption of new guidance on January 1, 2020, the Company records an allowance for expected credit loss in an amount that represents the portion of the amortized cost basis of mortgage loans that the Company does not expect to collect, resulting in mortgage loans being presented at the net amount expected to be collected. In determining the Company’s ACL, management: (i) pools mortgage loans that share similar risk characteristics, (ii) considers lifetime credit loss expected over the contractual term of its mortgage loans adjusted for expected prepayments and any extensions, and (iii) considers past events, current economic conditions and forecasts of future economic conditions. Each of the Company’s commercial, agricultural and residential mortgage loan portfolio segments are evaluated separately. The ACL is calculated for each mortgage loan portfolio segment based on inputs unique to each loan portfolio segment. On a quarterly basis, mortgage loans within a portfolio segment that share similar risk characteristics, such as internal risk ratings or consumer credit scores, are pooled for calculation of ACL. On an ongoing basis, mortgage loans with dissimilar risk characteristics (i.e., loans with significant declines in credit quality), collateral dependent mortgage loans (i.e., when the borrower is experiencing financial difficulty, including when foreclosure is reasonable possible or probable) and reasonably expected troubled debt restructurings (i.e., the Company grants concessions to borrower that is experiencing financial difficulties) are evaluated individually for credit loss. The ACL for loans evaluated individually are established using the same methodologies for all three portfolio segments. For example, the ACL for a collateral dependent loan is established as the excess of amortized cost over the estimated fair value of the loan’s underlying collateral, less selling cost when foreclosure is probable. Accordingly, the change in the estimated fair value of collateral dependent loans, which are evaluated individually for credit loss, is recorded as a change in the ACL which is recorded on a quarterly basis as a charge or credit to earnings in net investment gains (losses). In accordance with the previous guidance, evaluation and measurement methodologies in determining the ACL were similar, except: (i) credit loss was recognized when incurred (when it was probable, based on current information and events, that all amounts due under the loan agreement would not be collected), (ii) pooling of loans with similar risk characteristics was permitted, but not required, (iii) forecasts of future economic conditions were not considered in the evaluation, (iv) measurement of the expected credit loss over the contractual term, or expected term, was not considered in the measurement, and (v) the credit loss for loans evaluated individually could also be determined using either discounted cash flows using the loans original effective interest rate or observable market prices. Commercial and Agricultural Mortgage Loan Portfolio Segments Commercial and agricultural mortgage loan ACL are calculated in a similar manner. Within each loan portfolio segment, commercial and agricultural, loans are pooled by internal risk rating. Estimated lifetime loss rates, which vary by internal risk rating, are applied to the amortized cost of each loan, excluding accrued investment income, on a quarterly basis to develop the ACL. Internal risk ratings are based on an assessment of the loan’s credit quality, which can change over time. The estimated lifetime loss rates are based on several loan portfolio segment-specific factors, including (i) the Company’s experience with defaults and loss severity, (ii) expected default and loss severity over the forecast period, (iii) current and forecasted economic conditions including growth, inflation, interest rates and unemployment levels, (iv) loan specific characteristics including loan-to-value ratios, and (v) internal risk ratings. These evaluations are revised as conditions change and new information becomes available. The Company uses its several decades of historical default and loss severity experience which capture multiple economic cycles. The Company uses a forecast of economic assumptions for a two-year period for most of its commercial and agricultural mortgage loans, while a one-year period is used for loans originated in certain markets. After the applicable forecast period, the Company reverts to its historical loss experience using a straight-line basis over two years. For evaluations of commercial mortgage loans, in addition to historical experience, management considers factors that include the impact of a rapid change to the economy, which may not be reflected in the loan portfolio, recent loss and recovery trend experience as compared to historical loss and recovery experience, and loan specific characteristics including debt service coverage ratios. In estimating lifetime credit loss expected over the term of its commercial mortgage loans, the Company adjusts for expected prepayment and extension experience during the forecast period using historical prepayment and extension experience considering the expected position in the economic cycle and the loan profile (i.e., floating rate, shorter-term fixed rate and longer-term fixed rate) and after the forecast period using long-term historical prepayment experience. For evaluations of agricultural mortgage loans, in addition to historical experience, management considers factors that include increased stress in certain sectors, which may be evidenced by higher delinquency rates, or a change in the number of higher risk loans. In estimating lifetime credit loss expected over the term of its agricultural mortgage loans, the Company’s experience is much less sensitive to the position in the economic cycle and by loan profile, accordingly historical prepayment experience is used, while extension terms are not prevalent with the Company’s agricultural mortgage loans. Commercial mortgage loans are reviewed on an ongoing basis, which review includes, but is not limited to, an analysis of the property financial statements and rent roll, lease rollover analysis, property inspections, market analysis, estimated valuations of the underlying collateral, loan-to-value ratios, debt service coverage ratios and tenant creditworthiness. The monitoring process focuses on higher risk loans, which include those that are classified as restructured, delinquent or in foreclosure, as well as loans with higher loan-to-value ratios and lower debt service coverage ratios. Agricultural mortgage loans are reviewed on an ongoing basis, which review includes, but is not limited to, property inspections, market analysis, estimated valuations of the underlying collateral, loan-to-value ratios and borrower creditworthiness, as well as reviews on a geographic and property-type basis. The monitoring process for agricultural mortgage loans also focuses on higher risk loans. For commercial mortgage loans, the primary credit quality indicator is the debt service coverage ratio, which compares a property’s net operating income to amounts needed to service the principal and interest due under the loan. Generally, the lower the debt service coverage ratio, the higher the risk of experiencing a credit loss. The Company also reviews the loan-to-value ratio of its commercial mortgage loan portfolio. Loan-to-value ratios compare the unpaid principal balance of the loan to the estimated fair value of the underlying collateral. Generally, the higher the loan-to-value ratio, the higher the risk of experiencing a credit loss. The debt service coverage ratio and the values utilized in calculating the ratio are updated routinely. In addition, the loan-to-value ratio is routinely updated for all but the lowest risk loans as part of the Company’s ongoing review of its commercial mortgage loan portfolio. For agricultural mortgage loans, the Company’s primary credit quality indicator is the loan-to-value ratio. The values utilized in calculating this ratio are developed in connection with the ongoing review of the agricultural mortgage loan portfolio and are routinely updated. Commitments to lend: After loans are approved, the Company makes commitments to lend and, typically, borrowers draw down on some or all of the commitments. The timing of mortgage loan funding is based on the commitment expiration dates. A liability for expected credit loss for unfunded commercial and agricultural mortgage loan commitments is recorded within net investment gains (losses). The liability is based on estimated lifetime loss rates as described above and the amount of the outstanding commitments, which for lines of credit, considers estimated utilization rates. When the commitment is funded or expires, the liability is adjusted accordingly. Residential Mortgage Loan Portfolio Segment The Company’s residential mortgage loan portfolio is comprised primarily of purchased closed end, amortizing residential mortgage loans, including both performing loans purchased within 12 months of origination and reperforming loans purchased after they have been performing for at least 12 months post-modification. Residential mortgage loans are pooled by loan type (i.e., new origination and reperforming) and pooled by similar risk profiles (including consumer credit score and loan-to-value ratios). Estimated lifetime loss rates, which vary by loan type and risk profile, are applied to the amortized cost of each loan excluding accrued investment income on a quarterly basis to develop the ACL. The estimated lifetime loss rates are based on several factors, including (i) industry historical experience and expected results over the forecast period for defaults, (ii) loss severity, (iii) prepayment rates, (iv) current and forecasted economic conditions including growth, inflation, interest rates and unemployment levels, and (v) loan pool specific characteristics including consumer credit scores, loan-to-value ratios, payment history and home prices. These evaluations are revised as conditions change and new information becomes available. The Company uses industry historical experience which captures multiple economic cycles as the Company has purchased most of its residential mortgage loans in the last five years. The Company uses a forecast of economic assumptions for a two-year period for most of its residential mortgage loans. After the applicable forecast period, the Company immediately reverts to industry historical loss experience. For residential mortgage loans, the Company’s primary credit quality indicator is whether the loan is performing or nonperforming. The Company generally defines nonperforming residential mortgage loans as those that are 60 or more days past due and/or in nonaccrual status which is assessed monthly. Generally, nonperforming residential mortgage loans have a higher risk of experiencing a credit loss. Past Due and Nonaccrual Mortgage Loans Leveraged and Direct Financing Leases Leased Real Estate Investments - Operating Leases Variable Interest Entities The Company has invested in legal entities that are VIEs. In certain instances, the Company holds both the power to direct the most significant activities of the entity, as well as an economic interest in the entity and, as such, is deemed to be the primary beneficiary or consolidator of the entity. The determination of the VIE’s primary beneficiary requires an evaluation of the contractual and implied rights and obligations associated with each party’s relationship with or involvement in the entity, an estimate of the entity’s expected losses and expected residual returns and the allocation of such estimates to each party involved in the entity. |
Derivatives | Freestanding Derivatives Freestanding derivatives are carried on the Company’s balance sheet either as assets within other invested assets or as liabilities within other liabilities at estimated fair value. The Company does not offset the estimated fair value amounts recognized for derivatives executed with the same counterparty under the same master netting agreement. Accruals on derivatives are generally recorded in accrued investment income or within other liabilities. However, accruals that are not scheduled to settle within one year are included with the derivative’s carrying value in other invested assets or other liabilities. If a derivative is not designated as an accounting hedge or its use in managing risk does not qualify for hedge accounting, changes in the estimated fair value of the derivative are reported in net derivative gains (losses) except as follows: Statement of Operations Presentation: Derivative: Policyholder benefits and claims • Economic hedges of variable annuity guarantees included in future policy benefits Net investment income • Economic hedges of equity method investments in joint ventures • Derivatives held within Unit-linked investments Hedge Accounting To qualify for hedge accounting, at the inception of the hedging relationship, the Company formally documents its risk management objective and strategy for undertaking the hedging transaction, as well as its designation of the hedge. Hedge designation and financial statement presentation of changes in estimated fair value of the hedging derivatives are as follows: • Fair value hedge - a hedge of the estimated fair value of a recognized asset or liability - in the same line item as the earnings effect of the hedged item. The carrying value of the hedged recognized asset or liability is adjusted for changes in its estimated fair value due to the hedged risk. • Cash flow hedge - a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability - in OCI and reclassified into the statement of operations when the Company’s earnings are affected by the variability in cash flows of the hedged item. • Net investment in a foreign operation (“NIFO”) hedge - in OCI, consistent with the translation adjustment for the hedged net investment in the foreign operation. The changes in estimated fair values of the hedging derivatives are exclusive of any accruals that are separately reported on the statement of operations within interest income or interest expense to match the location of the hedged item. Accruals on derivatives in net investment hedges are recognized in OCI. In its hedge documentation, the Company sets forth how the hedging instrument is expected to hedge the designated risks related to the hedged item and sets forth the method that will be used to retrospectively and prospectively assess the hedging instrument’s effectiveness. A derivative designated as a hedging instrument must be assessed as being highly effective in offsetting the designated risk of the hedged item. Hedge effectiveness is formally assessed at inception and at least quarterly throughout the life of the designated hedging relationship. Assessments of hedge effectiveness are also subject to interpretation and estimation and different interpretations or estimates may have a material effect on the amount reported in net income. The Company discontinues hedge accounting prospectively when: (i) it is determined that the derivative is no longer highly effective in offsetting changes in the estimated fair value or cash flows of a hedged item, (ii) the derivative expires, is sold, terminated, or exercised, (iii) it is no longer probable that the hedged forecasted transaction will occur, or (iv) the derivative is de-designated as a hedging instrument. When hedge accounting is discontinued because it is determined that the derivative is not highly effective in offsetting changes in the estimated fair value or cash flows of a hedged item, the derivative continues to be carried on the balance sheet at its estimated fair value, with changes in estimated fair value recognized in net derivative gains (losses). The carrying value of the hedged recognized asset or liability under a fair value hedge is no longer adjusted for changes in its estimated fair value due to the hedged risk, and the cumulative adjustment to its carrying value is amortized into income over the remaining life of the hedged item. Provided the hedged forecasted transaction is still probable of occurring, the changes in estimated fair value of derivatives recorded in OCI related to discontinued cash flow hedges are released into the statement of operations when the Company’s earnings are affected by the variability in cash flows of the hedged item. When hedge accounting is discontinued because it is no longer probable that the forecasted transactions will occur on the anticipated date or within two months of that date, the derivative continues to be carried on the balance sheet at its estimated fair value, with changes in estimated fair value recognized currently in net derivative gains (losses). Deferred gains and losses of a derivative recorded in OCI pursuant to the discontinued cash flow hedge of a forecasted transaction that is no longer probable of occurring are recognized immediately in net investment gains (losses). In all other situations in which hedge accounting is discontinued, the derivative is carried at its estimated fair value on the balance sheet, with changes in its estimated fair value recognized in the current period as net derivative gains (losses). Embedded Derivatives The Company issues certain products, which include variable annuities and investment contracts, and is a party to certain reinsurance agreements that have embedded derivatives. The Company assesses each identified embedded derivative to determine whether it is required to be bifurcated. The embedded derivative is bifurcated from the host contract and accounted for as a freestanding derivative if: • the combined instrument is not accounted for in its entirety at estimated fair value with changes in estimated fair value recorded in earnings; • the terms of the embedded derivative are not clearly and closely related to the economic characteristics of the host contract; and • a separate instrument with the same terms as the embedded derivative would qualify as a derivative instrument. Such embedded derivatives are carried on the balance sheet at estimated fair value with the host contract and changes in their estimated fair value are generally reported in net derivative gains (losses). If the Company is unable to properly identify and measure an embedded derivative for separation from its host contract, the entire contract is carried on the balance sheet at estimated fair value, with changes in estimated fair value recognized in the current period in net investment gains (losses) or net investment income. Additionally, the Company may elect to carry an entire contract on the balance sheet at estimated fair value, with changes in estimated fair value recognized in the current period in net investment gains (losses) or net investment income if that contract contains an embedded derivative that requires bifurcation. At inception, the Company attributes to the embedded derivative a portion of the projected future guarantee fees to be collected from the policyholder equal to the present value of projected future guaranteed benefits. Any additional fees represent “excess” fees and are reported in universal life and investment-type product policy fees. Derivative Strategies The Company is exposed to various risks relating to its ongoing business operations, including interest rate, foreign currency exchange rate, credit and equity market. The Company uses a variety of strategies to manage these risks, including the use of derivatives. Derivatives are financial instruments with values derived from interest rates, foreign currency exchange rates, credit spreads and/or other financial indices. Derivatives may be exchange-traded or contracted in the over-the-counter (“OTC”) market. Certain of the Company’s OTC derivatives are cleared and settled through central clearing counterparties (“OTC-cleared”), while others are bilateral contracts between two counterparties (“OTC-bilateral”). The types of derivatives the Company uses include swaps, forwards, futures and option contracts. To a lesser extent, the Company uses credit default swaps and structured interest rate swaps to synthetically replicate investment risks and returns which are not readily available in the cash markets. The Company designates and accounts for the following as fair value hedges when they have met the requirements of fair value hedging: (i) interest rate swaps to convert fixed rate assets and liabilities to floating rate assets and liabilities, (ii) foreign currency swaps to hedge the foreign currency fair value exposure of foreign currency denominated assets and liabilities, and (iii) foreign currency forwards to hedge the foreign currency fair value exposure of foreign currency denominated investments. The Company designates and accounts for the following as cash flow hedges when they have met the requirements of cash flow hedging: (i) interest rate swaps to convert floating rate assets and liabilities to fixed rate assets and liabilities, (ii) foreign currency swaps to hedge the foreign currency cash flow exposure of foreign currency denominated assets and liabilities, (iii) interest rate forwards and credit forwards to lock in the price to be paid for forward purchases of investments, (iv) interest rate swaps and interest rate forwards to hedge the forecasted purchases of fixed-rate investments, and (v) interest rate swaps and interest rate forwards to hedge forecasted fixed-rate borrowings. When net investments in foreign operations are sold or substantially liquidated, the amounts in AOCI are reclassified to the statement of operations. The Company may be exposed to credit-related losses in the event of nonperformance by its counterparties to derivatives. Generally, the current credit exposure of the Company’s derivatives is limited to the net positive estimated fair value of derivatives at the reporting date after taking into consideration the existence of master netting or similar agreements and any collateral received pursuant to such agreements. The Company manages its credit risk related to derivatives by entering into transactions with creditworthy counterparties and establishing and monitoring exposure limits. The Company’s OTC-bilateral derivative transactions are governed by ISDA Master Agreements which provide for legally enforceable set-off and close-out netting of exposures to specific counterparties in the event of early termination of a transaction, which includes, but is not limited to, events of default and bankruptcy. In the event of an early termination, the Company is permitted to set off receivables from the counterparty against payables to the same counterparty arising out of all included transactions. All of the Company’s ISDA Master Agreements also include Credit Support Annex provisions which require both the pledging and accepting of collateral in connection with its OTC-bilateral derivatives. The Company’s OTC-cleared derivatives are effected through central clearing counterparties and its exchange-traded derivatives are effected through regulated exchanges. Such positions are marked to market and margined on a daily basis (both initial margin and variation margin), and the Company has minimal exposure to credit-related losses in the event of nonperformance by counterparties to such derivatives. See Note 8 for a description of the impact of credit risk on the valuation of derivatives. |
Employee Benefit Plans | . These subsidiaries also provide certain postemployment benefits and certain postretirement medical and life insurance benefits for U.S. and non-U.S. retired employees. |
Closed Block | On April 7, 2000 (the “Demutualization Date”), Metropolitan Life Insurance Company (“MLIC”) converted from a mutual life insurance company to a stock life insurance company and became a wholly-owned subsidiary of MetLife, Inc. The conversion was pursuant to an order by the New York Superintendent of Insurance approving MLIC’s plan of reorganization, as amended (the “Plan of Reorganization”). On the Demutualization Date, MLIC established a closed block for the benefit of holders of certain individual life insurance policies of MLIC. Experience within the closed block, in particular mortality and investment yields, as well as realized and unrealized gains and losses, directly impact the policyholder dividend obligation. Amortization of the closed block DAC, which resides outside of the closed block, is based upon cumulative actual and expected earnings within the closed block. Accordingly, the Company’s net income continues to be sensitive to the actual performance of the closed block. |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Reporting Information, by Segment | Three Months Ended March 31, 2020 U.S. Asia Latin EMEA MetLife Holdings Corporate & Other Total Adjustments Total (In millions) Revenues Premiums $ 5,674 $ 1,636 $ 640 $ 568 $ 904 $ 12 $ 9,434 $ 32 $ 9,466 Universal life and investment-type product policy fees 275 430 270 116 294 — 1,385 46 1,431 Net investment income 1,766 937 218 69 1,315 16 4,321 (1,260 ) 3,061 Other revenues 240 14 11 13 35 84 397 42 439 Net investment gains (losses) — — — — — — — (288 ) (288 ) Net derivative gains (losses) — — — — — — — 4,201 4,201 Total revenues 7,955 3,017 1,139 766 2,548 112 15,537 2,773 18,310 Expenses Policyholder benefits and claims and policyholder dividends 5,435 1,321 610 310 1,661 26 9,363 (49 ) 9,314 Interest credited to policyholder account balances 458 445 70 27 218 — 1,218 (1,138 ) 80 Capitalization of DAC (112 ) (421 ) (100 ) (130 ) (5 ) (3 ) (771 ) (3 ) (774 ) Amortization of DAC and VOBA 119 315 74 130 100 1 739 49 788 Amortization of negative VOBA — (8 ) — (2 ) — — (10 ) — (10 ) Interest expense on debt 2 — 1 — 2 217 222 — 222 Other expenses 1,066 874 345 332 228 136 2,981 66 3,047 Total expenses 6,968 2,526 1,000 667 2,204 377 13,742 (1,075 ) 12,667 Provision for income tax expense (benefit) 207 141 44 21 67 (166 ) 314 928 1,242 Adjusted earnings $ 780 $ 350 $ 95 $ 78 $ 277 $ (99 ) 1,481 Adjustments to: Total revenues 2,773 Total expenses 1,075 Provision for income tax (expense) benefit (928 ) Net income (loss) $ 4,401 $ 4,401 Three Months Ended March 31, 2019 U.S. Asia Latin America EMEA MetLife Holdings Corporate & Other Total Adjustments Total (In millions) Revenues Premiums $ 5,567 $ 1,699 $ 646 $ 542 $ 927 $ 24 $ 9,405 $ — $ 9,405 Universal life and investment-type product policy fees 270 406 284 103 274 1 1,338 27 1,365 Net investment income 1,719 880 296 74 1,287 25 4,281 627 4,908 Other revenues 221 16 12 14 67 94 424 70 494 Net investment gains (losses) — — — — — — — 15 15 Net derivative gains (losses) — — — — — — — 115 115 Total revenues 7,777 3,001 1,238 733 2,555 144 15,448 854 16,302 Expenses Policyholder benefits and claims and policyholder dividends 5,373 1,319 597 284 1,648 20 9,241 131 9,372 Interest credited to policyholder account balances 501 403 94 24 226 — 1,248 713 1,961 Capitalization of DAC (114 ) (479 ) (94 ) (117 ) (6 ) (2 ) (812 ) — (812 ) Amortization of DAC and VOBA 114 307 78 92 63 1 655 (31 ) 624 Amortization of negative VOBA — (9 ) — (1 ) — — (10 ) — (10 ) Interest expense on debt 2 — 1 — 2 229 234 — 234 Other expenses 993 955 366 338 227 222 3,101 88 3,189 Total expenses 6,869 2,496 1,042 620 2,160 470 13,657 901 14,558 Provision for income tax expense (benefit) 184 149 62 27 78 (165 ) 335 24 359 Adjusted earnings $ 724 $ 356 $ 134 $ 86 $ 317 $ (161 ) 1,456 Adjustments to: Total revenues 854 Total expenses (901 ) Provision for income tax (expense) benefit (24 ) Net income (loss) $ 1,385 $ 1,385 The following table presents total assets with respect to the Company’s segments, as well as Corporate & Other, at: March 31, 2020 December 31, 2019 (In millions) U.S. $ 273,341 $ 266,174 Asia 160,442 161,018 Latin America 61,526 75,069 EMEA 24,365 27,281 MetLife Holdings 172,347 175,199 Corporate & Other 45,720 35,722 Total $ 737,741 $ 740,463 |
Insurance (Tables)
Insurance (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Insurance [Abstract] | |
Guarantees related to Annuity, Universal and Variable Life Contracts | Information regarding the Company’s guarantee exposure, which includes direct and assumed business, but excludes offsets from hedging or ceded reinsurance, if any, was as follows at: March 31, 2020 December 31, 2019 In the At In the At (Dollars in millions) Annuity Contracts: Variable Annuity Guarantees: Total account value (1), (2), (3) $ 55,583 $ 20,475 $ 64,506 $ 24,036 Separate account value (1) $ 34,167 $ 18,774 $ 41,305 $ 22,291 Net amount at risk (2) $ 4,009 (4 ) $ 1,131 (5 ) $ 1,572 (4 ) $ 584 (5 ) Average attained age of contractholders 67 years 66 years 67 years 65 years Other Annuity Guarantees: Total account value (1), (3) N/A $ 4,885 N/A $ 5,671 Net amount at risk N/A $ 388 (6 ) N/A $ 408 (6 ) Average attained age of contractholders N/A 51 years N/A 51 years March 31, 2020 December 31, 2019 Secondary Paid-Up Secondary Paid-Up (Dollars in millions) Universal and Variable Life Contracts: Total account value (1), (3) $ 10,994 $ 2,903 $ 11,937 $ 2,940 Net amount at risk (7) $ 84,436 $ 14,231 $ 86,221 $ 14,500 Average attained age of policyholders 54 years 65 years 53 years 65 years __________________ (1) The Company’s annuity and life contracts with guarantees may offer more than one type of guarantee in each contract. Therefore, the amounts listed above may not be mutually exclusive. (2) Includes amounts, which are not reported on the interim condensed consolidated balance sheets, from assumed variable annuity guarantees from the Company’s former operating joint venture in Japan. (3) Includes the contractholder’s investments in the general account and separate account, if applicable. (4) Defined as the death benefit less the total account value, as of the balance sheet date. It represents the amount of the claim that the Company would incur if death claims were filed on all contracts on the balance sheet date and includes any additional contractual claims associated with riders purchased to assist with covering income taxes payable upon death. (5) Defined as the amount (if any) that would be required to be added to the total account value to purchase a lifetime income stream, based on current annuity rates, equal to the minimum amount provided under the guaranteed benefit. This amount represents the Company’s potential economic exposure to such guarantees in the event all contractholders were to annuitize on the balance sheet date, even though the contracts contain terms that allow annuitization of the guaranteed amount only after the 10th anniversary of the contract, which not all contractholders have achieved. (6) Defined as either the excess of the upper tier, adjusted for a profit margin, less the lower tier, as of the balance sheet date or the amount (if any) that would be required to be added to the total account value to purchase a lifetime income stream, based on current annuity rates, equal to the minimum amount provided under the guaranteed benefit. These amounts represent the Company’s potential economic exposure to such guarantees in the event all contractholders were to annuitize on the balance sheet date. (7) Defined as the guarantee amount less the account value, as of the balance sheet date. It represents the amount of the claim that the Company would incur if death claims were filed on all contracts on the balance sheet date. |
Liabilities for Unpaid Claims and Claim Expenses | Information regarding the liabilities for unpaid claims and claim adjustment expenses was as follows: Three Months 2020 2019 (In millions) Balance, beginning of period $ 19,216 $ 17,788 Less: Reinsurance recoverables 2,377 2,332 Net balance, beginning of period 16,839 15,456 Incurred related to: Current period 6,455 6,338 Prior periods (1) 113 210 Total incurred 6,568 6,548 Paid related to: Current period (3,523 ) (3,430 ) Prior periods (3,160 ) (2,814 ) Total paid (6,683 ) (6,244 ) Net balance, end of period 16,724 15,760 Add: Reinsurance recoverables 2,461 2,354 Balance, end of period (included in future policy benefits and other policy-related balances) $ 19,185 $ 18,114 __________________ (1) For both the three months ended March 31, 2020 and 2019 , claims and claim adjustment expenses associated with prior periods increased due to events incurred in prior periods but reported in the current period. |
Closed Block (Tables)
Closed Block (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Closed Block Disclosure [Abstract] | |
Closed block liabilities and assets | Information regarding the closed block liabilities and assets designated to the closed block was as follows at: March 31, 2020 December 31, 2019 (In millions) Closed Block Liabilities Future policy benefits $ 39,214 $ 39,379 Other policy-related balances 340 423 Policyholder dividends payable 431 432 Policyholder dividend obligation 1,677 2,020 Deferred income tax liability 82 79 Other liabilities 169 81 Total closed block liabilities 41,913 42,414 Assets Designated to the Closed Block Investments: Fixed maturity securities available-for-sale, at estimated fair value 25,332 25,977 Equity securities, at estimated fair value 44 49 Contractholder-directed equity securities and fair value option securities, at estimated fair value 46 53 Mortgage loans 6,995 7,052 Policy loans 4,478 4,489 Real estate and real estate joint ventures 556 544 Other invested assets 844 314 Total investments 38,295 38,478 Cash and cash equivalents 148 448 Accrued investment income 427 419 Premiums, reinsurance and other receivables 67 75 Current income tax recoverable 90 91 Total assets designated to the closed block 39,027 39,511 Excess of closed block liabilities over assets designated to the closed block 2,886 2,903 AOCI: Unrealized investment gains (losses), net of income tax 2,008 2,453 Unrealized gains (losses) on derivatives, net of income tax 314 97 Allocated to policyholder dividend obligation, net of income tax (1,325 ) (1,596 ) Total amounts included in AOCI 997 954 Maximum future earnings to be recognized from closed block assets and liabilities $ 3,883 $ 3,857 |
Closed block policyholder dividend obligation | Information regarding the closed block policyholder dividend obligation was as follows: Three Months Year (In millions) Balance, beginning of period $ 2,020 $ 428 Change in unrealized investment and derivative gains (losses) (343 ) 1,592 Balance, end of period $ 1,677 $ 2,020 |
Closed block revenues and expenses | Information regarding the closed block revenues and expenses was as follows: Three Months 2020 2019 (In millions) Revenues Premiums $ 367 $ 367 Net investment income 407 428 Net investment gains (losses) (19 ) (1 ) Net derivative gains (losses) 26 3 Total revenues 781 797 Expenses Policyholder benefits and claims 550 539 Policyholder dividends 219 228 Other expenses 27 29 Total expenses 796 796 Revenues, net of expenses before provision for income tax expense (benefit) (15 ) 1 Provision for income tax expense (benefit) (3 ) — Revenues, net of expenses and provision for income tax expense (benefit) $ (12 ) $ 1 |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Fixed Maturity Available-for-Sale and Equity Securities | The following table presents the fixed maturity securities AFS by sector. U.S. corporate and foreign corporate sectors include redeemable preferred stock. Residential mortgage-backed securities (“RMBS”) includes agency, prime, alternative and sub-prime mortgage-backed securities. Asset-backed securities (“ABS”) includes securities collateralized by corporate loans and consumer loans. Municipals includes taxable and tax-exempt revenue bonds and, to a much lesser extent, general obligations of states, municipalities and political subdivisions. Commercial mortgage-backed securities (“CMBS”) primarily includes securities collateralized by multiple commercial mortgage loans. RMBS, ABS and CMBS are collectively, “Structured Products.” In accordance with new guidance adopted January 1, 2020 regarding expected credit loss, securities that incurred a credit loss after December 31, 2019 and were still held as of March 31, 2020, are presented net of ACL. In accordance with previous guidance, both the temporary loss and OTTI loss are presented for securities that were in an unrealized loss position as of December 31, 2019. March 31, 2020 December 31, 2019 Amortized ACL Gross Unrealized Estimated Amortized Gross Unrealized Estimated Losses Temporary OTTI (In millions) U.S. corporate $ 80,287 $ (51 ) $ 7,151 $ 2,316 $ 85,071 $ 79,115 $ 8,943 $ 305 $ — $ 87,753 Foreign government 57,737 (136 ) 7,816 573 64,844 58,840 8,710 321 — 67,229 Foreign corporate 58,679 — 3,281 2,765 59,195 59,342 5,540 717 — 64,165 U.S. government and agency 38,181 — 9,787 9 47,959 37,586 4,604 106 — 42,084 RMBS 29,242 — 1,636 409 30,469 27,051 1,535 72 (33 ) 28,547 ABS 15,870 — 48 1,080 14,838 14,547 83 88 — 14,542 Municipals 11,877 — 2,054 60 13,871 11,081 2,001 29 — 13,053 CMBS 10,751 — 232 545 10,438 10,093 396 42 — 10,447 Total fixed maturity securities AFS $ 302,624 $ (187 ) $ 32,005 $ 7,757 $ 326,685 $ 297,655 $ 31,812 $ 1,680 $ (33 ) $ 327,820 __________________ (1) Noncredit OTTI losses included in AOCI in an unrealized gain position are due to increases in estimated fair value subsequent to initial recognition of noncredit loss on such securities. See also “— Net Unrealized Investment Gains (Losses).” Equity securities are summarized as follows at: March 31, 2020 December 31, 2019 Estimated Fair Value % of Total Estimated Fair Value % of Total (Dollars in millions) Common stock $ 682 65.0 % $ 944 70.3 % Non-redeemable preferred stock 368 35.0 398 29.7 Total equity securities $ 1,050 100.0 % $ 1,342 100.0 % |
Available-for-sale fixed maturity securities by contractual maturity date | The amortized cost, net of ACL and estimated fair value of fixed maturity securities AFS, by contractual maturity date, were as follows at March 31, 2020 : Due in One Due After Due After Five Years Through Ten Years Due After Ten Years Structured Products Total Fixed Maturity Securities AFS (In millions) Amortized cost, net of ACL $ 16,862 $ 47,867 $ 57,679 $ 124,166 $ 55,863 $ 302,437 Estimated fair value $ 17,061 $ 48,490 $ 60,624 $ 144,765 $ 55,745 $ 326,685 |
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity Securities Available-for-Sale | The following table presents the estimated fair value and gross unrealized losses of fixed maturity securities AFS in an unrealized loss position by sector and aggregated by length of time that the securities have been in a continuous unrealized loss position. Included in the table below are securities without an ACL as of March 31, 2020, in accordance with new guidance adopted January 1, 2020. Also included in the table below are all securities in an unrealized loss position as of December 31, 2019, in accordance with previous guidance. March 31, 2020 December 31, 2019 Less than 12 Months Equal to or Greater than 12 Months Less than 12 Months Equal to or Greater than 12 Months Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses (Dollars in millions) U.S. corporate $ 22,055 $ 2,136 $ 655 $ 174 $ 3,817 $ 107 $ 2,226 $ 198 Foreign government 5,813 335 1,347 194 3,295 149 1,490 172 Foreign corporate 21,922 2,401 2,103 364 3,188 133 5,873 584 U.S. government and agency 1,103 8 37 — 5,391 97 196 9 RMBS 5,617 390 227 20 2,341 25 584 14 ABS 9,866 757 2,995 323 3,692 22 4,843 66 Municipals 1,351 60 1 — 1,156 29 1 — CMBS 4,693 485 384 60 1,926 16 487 26 Total fixed maturity securities AFS $ 72,420 $ 6,572 $ 7,749 $ 1,135 $ 24,806 $ 578 $ 15,700 $ 1,069 Investment grade $ 63,072 $ 5,080 $ 6,970 $ 919 $ 22,838 $ 437 $ 13,813 $ 821 Below investment grade 9,348 1,492 779 216 1,968 141 1,887 248 Total fixed maturity securities AFS $ 72,420 $ 6,572 $ 7,749 $ 1,135 $ 24,806 $ 578 $ 15,700 $ 1,069 Total number of securities in an unrealized loss position 6,667 947 2,153 1,411 |
Debt Securities, Available-for-sale, Allowance for Credit Loss [Table Text Block] | The rollforward of ACL for fixed maturity securities AFS by sector is as follows: U.S. Corporate Foreign Government Total (In millions) Three Months Ended March 31, 2020 Balance, beginning of period $ — $ — $ — Additions: Securities for which credit loss was not previously recorded (51 ) (136 ) (187 ) Balance, end of period $ (51 ) $ (136 ) $ (187 ) |
Disclosure of Mortgage Loans Net of Valuation Allowance | Mortgage loans are summarized as follows at: March 31, 2020 December 31, 2019 Carrying Value % of Carrying Value % of (Dollars in millions) Mortgage loans: Commercial $ 50,077 61.6 % $ 49,624 61.6 % Agricultural 16,788 20.6 16,695 20.7 Residential 14,763 18.2 14,316 17.8 Total amortized cost 81,628 100.4 80,635 100.1 Allowance for credit loss (464 ) (0.6 ) (353 ) (0.4 ) Subtotal mortgage loans, net 81,164 99.8 80,282 99.7 Residential — FVO 180 0.2 188 0.2 Total mortgage loans held-for-investment, net $ 81,344 100.0 % $ 80,470 99.9 % Mortgage loans held-for-sale — — 59 0.1 Total mortgage loans, net $ 81,344 100.0 % $ 80,529 100.0 % |
Allowance for Loan and Lease Losses, Provision for Loss, Net | The changes in the ACL, by portfolio segment, were as follows: Three Months 2020 2019 Commercial Agricultural Residential Total Commercial Agricultural Residential Total (In millions) Balance, beginning of period $ 246 $ 52 $ 55 $ 353 $ 238 $ 46 $ 58 $ 342 Adoption of new credit loss guidance (118 ) 35 161 78 — — — — Provision (release) 15 (3 ) 24 36 7 1 2 10 Charge-offs, net of recoveries — — (3 ) (3 ) — — (2 ) (2 ) Balance, end of period $ 143 $ 84 $ 237 $ 464 $ 245 $ 47 $ 58 $ 350 |
Schedule of Past Due and Non Accrual Mortgage Loans | The past due and nonaccrual mortgage loans at amortized cost, prior to ACL, by portfolio segment, were as follows at: Past Due Greater than 90 Days Past Due and Still Accruing Interest Nonaccrual March 31, 2020 December 31, 2019 March 31, 2020 December 31, 2019 March 31, 2020 December 31, 2019 (In millions) Commercial $ 6 $ 10 $ — $ 9 $ 182 $ 176 Agricultural 271 129 121 7 166 137 Residential 407 452 16 35 391 418 Total $ 684 $ 591 $ 137 $ 51 $ 739 $ 731 |
Disclosure Real Estate and Real Estate Joint Ventures | Real estate investments, by income type, as well as income earned, are as follows at and for the periods indicated: March 31, 2020 December 31, 2019 Three Months 2020 2019 Carrying Value Income (In millions) Leased real estate investments $ 5,129 $ 4,893 $ 106 $ 92 Other real estate investments 419 420 35 34 Real estate joint ventures 5,702 5,428 24 4 Total real estate and real estate joint ventures $ 11,250 $ 10,741 $ 165 $ 130 |
Components of net unrealized investment gains (losses) included in accumulated other comprehensive income (loss) | The components of net unrealized investment gains (losses), included in AOCI, were as follows: March 31, 2020 December 31, 2019 (In millions) Fixed maturity securities AFS $ 24,197 $ 30,050 Fixed maturity securities AFS with noncredit OTTI losses included in AOCI — 33 Total fixed maturity securities AFS 24,197 30,083 Derivatives 6,336 2,209 Other 524 310 Subtotal 31,057 32,602 Amounts allocated from: Future policy benefits 546 (1,019 ) DAC, VOBA and DSI (2,759 ) (2,716 ) Policyholder dividend obligation (1,677 ) (2,020 ) Subtotal (3,890 ) (5,755 ) Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI — (4 ) Deferred income tax benefit (expense) (6,781 ) (6,846 ) Net unrealized investment gains (losses) 20,386 19,997 Net unrealized investment gains (losses) attributable to noncontrolling interests (17 ) (16 ) Net unrealized investment gains (losses) attributable to MetLife, Inc. $ 20,369 $ 19,981 The changes in net unrealized investment gains (losses) were as follows: Three Months (In millions) Balance, beginning of period $ 19,981 Fixed maturity securities AFS on which noncredit OTTI losses have been recognized (33 ) Unrealized investment gains (losses) during the period (1,512 ) Unrealized investment gains (losses) relating to: Future policy benefits 1,565 DAC, VOBA and DSI (43 ) Policyholder dividend obligation 343 Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI 4 Deferred income tax benefit (expense) 65 Net unrealized investment gains (losses) 20,370 Net unrealized investment gains (losses) attributable to noncontrolling interests (1 ) Balance, end of period $ 20,369 Change in net unrealized investment gains (losses) $ 389 Change in net unrealized investment gains (losses) attributable to noncontrolling interests (1 ) Change in net unrealized investment gains (losses) attributable to MetLife, Inc. $ 388 |
Securities Lending and Repurchase Agreements | A summary of the remaining contractual maturities of securities lending, repurchase agreements and FHLB of Boston short-term advance agreements is as follows: March 31, 2020 December 31, 2019 Remaining Maturities Remaining Maturities Open (1) 1 Month or Less Over 1 to 6 Months Over 6 Months to 1 Year Total Open (1) 1 Month or Less Over 1 to 6 Months Over 6 Months to 1 Year Total (In millions) Cash collateral liability by loaned security type: Securities lending: U.S. government and agency $ 3,965 $ 8,116 $ 6,525 $ — $ 18,606 $ 2,928 $ 6,676 $ 6,663 $ — $ 16,267 Foreign government — 268 762 — 1,030 — 259 767 — 1,026 Agency RMBS — 73 — — 73 — 76 — — 76 U.S. corporate 9 — — — 9 — — — — — Total $ 3,974 $ 8,457 $ 7,287 $ — $ 19,718 $ 2,928 $ 7,011 $ 7,430 $ — $ 17,369 Repurchase agreements: U.S. government and agency $ — $ 2,700 $ — $ — $ 2,700 $ — $ 2,310 $ — $ — $ 2,310 Cash collateral liability by pledged security type: (2) FHLB of Boston: Municipals $ — $ 250 $ 550 $ — $ 800 $ — $ 250 $ 475 $ 75 $ 800 __________________ (1) The related loaned security could be returned to the Company on the next business day, which would require the Company to immediately return the cash collateral. (2) The Company is permitted to withdraw any portion of the pledged collateral over the minimum collateral requirement at any time, other than in the event of a default by the Company. March 31, 2020 December 31, 2019 Securities (1) Securities (1) Estimated Fair Value Cash Collateral Received from Counterparties (2), (3) Reinvestment Portfolio at Estimated Fair Value Estimated Fair Value Cash Collateral Received from Counterparties (2), (3) Reinvestment Portfolio at Estimated Fair Value (In millions) Securities lending $ 19,170 $ 19,718 $ 19,541 $ 16,926 $ 17,369 $ 17,451 Repurchase agreements $ 2,746 $ 2,700 $ 2,676 $ 2,333 $ 2,310 $ 2,320 FHLB of Boston advance agreements $ 1,132 $ 800 $ 807 $ 1,083 $ 800 $ 843 __________________ (1) Securities on loan or securities pledged in connection with these programs are included within fixed maturity securities AFS, short-term investments and cash equivalents. (2) In connection with securities lending, in addition to cash collateral received, the Company received from counterparties security collateral of $21 million and $0 at March 31, 2020 and December 31, 2019 , respectively , which may not be sold or re-pledged, unless the counterparty is in default, and is not reflected on the consolidated financial statements. (3) The liability for cash collateral for these programs is included within payables for collateral under securities loaned, other transactions and other liabilities. |
Invested Assets on Deposit, Held in Trust and Pledged as Collateral | Invested assets on deposit, held in trust and pledged as collateral are presented below at estimated fair value for all asset classes, except mortgage loans, which are presented at carrying value, at: March 31, 2020 December 31, 2019 (In millions) Invested assets on deposit (regulatory deposits) $ 1,669 $ 2,034 Invested assets held in trust (collateral financing arrangement and reinsurance agreements) 3,007 2,991 Invested assets pledged as collateral (1) 27,687 24,493 Total invested assets on deposit, held in trust and pledged as collateral $ 32,363 $ 29,518 __________________ (1) The Company has pledged invested assets in connection with various agreements and transactions, including funding agreements, secured debt, a collateral financing arrangement (see Notes 4, 13 and 14 of the Notes to the Consolidated Financial Statements included in the 2019 Annual Report) and derivative transactions (see Note 7 ). |
Components of Net Investment Income | The components of net investment income were as follows: Three Months 2020 2019 (In millions) Investment income: Fixed maturity securities AFS $ 2,875 $ 2,939 Equity securities 14 17 FVO Securities (1) (78 ) 55 Mortgage loans 884 912 Policy loans 126 128 Real estate and real estate joint ventures 165 130 Other limited partnership interests 320 123 Cash, cash equivalents and short-term investments 92 128 Operating joint ventures 25 18 Other 102 78 Subtotal 4,525 4,528 Less: Investment expenses 324 356 Subtotal, net 4,201 4,172 Unit-linked investments (1) (1,140 ) 736 Net investment income $ 3,061 $ 4,908 __________________ (1) Changes in estimated fair value subsequent to purchase for investments still held as of the end of the respective periods and included in net investment income were principally from contractholder-directed equity securities supporting unit-linked variable annuity type liabilities (“Unit-linked investments”), and were ($1.1) billion and $648 million for the three months ended March 31, 2020 and 2019 , respectively. |
Components of Net Investment Gains (Losses) | The components of net investment gains (losses) were as follows: Three Months 2020 2019 (In millions) Total gains (losses) on fixed maturity securities AFS: Net credit loss (provision) release (1) $ (215 ) $ (10 ) Net gains (losses) on sales and disposals 219 (14 ) Total gains (losses) on fixed maturity securities AFS 4 (24 ) Total gains (losses) on equity securities: Net gains (losses) on sales and disposals 8 43 Change in estimated fair value (2) (292 ) 64 Total gains (losses) on equity securities (284 ) 107 Mortgage loans (63 ) (15 ) Real estate and real estate joint ventures 1 5 Other limited partnership interests 4 — Other (3) 25 (68 ) Subtotal (313 ) 5 Change in estimated fair value of other limited partnership interests and real estate joint ventures 1 (15 ) Non-investment portfolio gains (losses) 24 25 Subtotal 25 10 Total net investment gains (losses) $ (288 ) $ 15 __________________ (1) Net credit loss provision by sector for the three months ended March 31, 2019 were $8 million Industrial and $2 million RMBS. See “ — Rollforward of Allowance for Credit Loss for Fixed Maturity Securities AFS By Sector.” Due to the adoption of new guidance on January 1, 2020, prior period OTTI loss is presented as credit loss. (2) Changes in estimated fair value subsequent to purchase for equity securities still held as of the end of the period included in net investment gains (losses) were ($288) million and $97 million for the three months ended March 31, 2020 and 2019 , respectively. (3) Other gains (losses) included tax credit partnership impairment losses of ($78) million and a renewable energy partnership disposal gain of $46 million for the three months ended March 31, 2019. |
Proceeds From Sales Or Disposals Of Fixed Maturity and the Components Of Fixed Maturity Securities Net Investment Gains And Losses | Sales of securities are determined on a specific identification basis. Proceeds from sales or disposals and the components of net investment gains (losses) were as shown in the table below: Three Months 2020 2019 (In millions) Proceeds $ 12,089 $ 15,825 Gross investment gains $ 337 $ 205 Gross investment losses (118 ) (219 ) Net credit loss (provision) release (215 ) (10 ) Net investment gains (losses) $ 4 $ (24 ) |
Commercial Mortgage Loans | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Disclosure of the mortgage loans portfolio segment by the recorded investment, prior to valuation allowances, by credit quality indicator categories | The amortized cost of commercial mortgage loans by credit quality indicator and vintage year was as follows at March 31, 2020 : 2020 2019 2018 2017 2016 Prior Revolving Loans Total % of Total (Dollars in millions) Loan-to-value ratios: Less than 65% $ 1,276 $ 6,618 $ 7,108 $ 5,291 $ 5,431 $ 12,384 $ 2,886 $ 40,994 81.8 % 65% to 75% 446 2,455 1,631 959 884 1,218 — 7,593 15.2 76% to 80% — — 19 336 131 369 — 855 1.7 Greater than 80% — — — 401 58 176 — 635 1.3 Total $ 1,722 $ 9,073 $ 8,758 $ 6,987 $ 6,504 $ 14,147 $ 2,886 $ 50,077 100.0 % Debt service coverage ratios: > 1.20x $ 1,619 $ 8,668 $ 8,357 $ 6,535 $ 6,144 $ 13,235 $ 2,886 $ 47,444 94.8 % 1.00x - 1.20x — — 95 80 321 817 — 1,313 2.6 <1.00x 103 405 306 372 39 95 — 1,320 2.6 Total $ 1,722 $ 9,073 $ 8,758 $ 6,987 $ 6,504 $ 14,147 $ 2,886 $ 50,077 100.0 % |
Residential Mortgage Loans | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Disclosure of the mortgage loans portfolio segment by the recorded investment, prior to valuation allowances, by credit quality indicator categories | The amortized cost of residential mortgage loans by credit quality indicator and vintage year was as follows at March 31, 2020 : 2020 2019 2018 2017 2016 Prior Revolving Loans Total % of Total (Dollars in millions) Performance indicators: Performing $ 249 $ 3,084 $ 1,479 $ 510 $ 268 $ 8,766 $ — $ 14,356 97.2 % Nonperforming (1) — 9 9 5 7 377 — 407 2.8 Total $ 249 $ 3,093 $ 1,488 $ 515 $ 275 $ 9,143 $ — $ 14,763 100.0 % __________________ (1) Includes residential mortgage loans in process of foreclosure of $119 million a nd $118 million at March 31, 2020 and December 31, 2019 , respectively. |
Agricultural Mortgage Loans | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Disclosure of the mortgage loans portfolio segment by the recorded investment, prior to valuation allowances, by credit quality indicator categories | The amortized cost of agricultural mortgage loans by credit quality indicator and vintage year was as follows at March 31, 2020 : 2020 2019 2018 2017 2016 Prior Revolving Loans Total % of Total (Dollars in millions) Loan-to-value ratios: Less than 65% $ 522 $ 2,419 $ 3,131 $ 1,118 $ 2,898 $ 5,068 $ 853 $ 16,009 95.4 % 65% to 75% 39 192 113 95 27 241 11 718 4.3 76% to 80% — — 11 — — 6 2 19 0.1 Greater than 80% — — — — — 42 — 42 0.2 Total $ 561 $ 2,611 $ 3,255 $ 1,213 $ 2,925 $ 5,357 $ 866 $ 16,788 100.0 % |
Variable Interest Entity, Primary Beneficiary [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Schedule of Variable Interest Entities | The following table presents the total assets and total liabilities relating to investment-related VIEs for which the Company has concluded that it is the primary beneficiary and which are consolidated at: March 31, 2020 December 31, 2019 Total Total Total Total (In millions) Investment funds $ 215 $ 1 $ 207 $ 1 Renewable energy partnership 95 — 94 — Other investments 10 5 10 5 Total $ 320 $ 6 $ 311 $ 6 __________________ (1) Assets of the investment funds, renewable energy partnership and other investments primarily consisted of other invested assets. |
Variable Interest Entity, Not Primary Beneficiary | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Schedule of Variable Interest Entities | The carrying amount and maximum exposure to loss relating to VIEs in which the Company holds a significant variable interest but is not the primary beneficiary and which have not been consolidated were as follows at: March 31, 2020 December 31, 2019 Carrying Maximum Carrying Maximum (In millions) Fixed maturity securities AFS: Structured Products (2) $ 53,654 $ 53,654 $ 51,962 $ 51,962 U.S. and foreign corporate 1,780 1,780 1,764 1,764 Foreign government 124 124 136 136 Other limited partnership interests 7,164 12,841 6,674 12,016 Other invested assets 1,458 1,567 1,495 1,621 Other investments 453 500 450 497 Total $ 64,633 $ 70,466 $ 62,481 $ 67,996 __________________ (1) The maximum exposure to loss relating to fixed maturity securities AFS is equal to their carrying amounts or the carrying amounts of retained interests. The maximum exposure to loss relating to other limited partnership interests is equal to the carrying amounts plus any unfunded commitments. For certain of its investments in other invested assets, the Company’s return is in the form of income tax credits which are guaranteed by creditworthy third parties. For such investments, the maximum exposure to loss is equal to the carrying amounts plus any unfunded commitments, reduced by income tax credits guaranteed by third parties of $7 million and $6 million at March 31, 2020 and December 31, 2019 , respectively. Such a maximum loss would be expected to occur only upon bankruptcy of the issuer or investee. (2) For these variable interests, the Company’s involvement is limited to that of a passive investor in mortgage-backed or asset-backed securities issued by trusts that do not have substantial equity. |
Derivatives (Tables)
Derivatives (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location | The following table presents the primary underlying risk exposure, gross notional amount, and estimated fair value of the Company’s derivatives, excluding embedded derivatives, held at: March 31, 2020 December 31, 2019 Primary Underlying Risk Exposure Gross Estimated Fair Value Gross Estimated Fair Value Assets Liabilities Assets Liabilities (In millions) Derivatives Designated as Hedging Instruments: Fair value hedges: Interest rate swaps Interest rate $ 3,240 $ 3,394 $ 10 $ 2,369 $ 2,667 $ 2 Foreign currency swaps Foreign currency exchange rate 1,304 71 — 1,304 16 17 Foreign currency forwards Foreign currency exchange rate 2,236 11 26 2,336 1 40 Subtotal 6,780 3,476 36 6,009 2,684 59 Cash flow hedges: Interest rate swaps Interest rate 5,084 181 27 3,675 145 27 Interest rate forwards Interest rate 7,239 1,037 — 7,364 83 144 Foreign currency swaps Foreign currency exchange rate 37,187 4,141 2,359 36,983 1,627 1,430 Subtotal 49,510 5,359 2,386 48,022 1,855 1,601 NIFO hedges: Foreign currency forwards Foreign currency exchange rate 1,059 67 2 1,059 — 10 Currency options Foreign currency exchange rate 3,200 65 — 4,200 33 91 Subtotal 4,259 132 2 5,259 33 101 Total qualifying hedges 60,549 8,967 2,424 59,290 4,572 1,761 Derivatives Not Designated or Not Qualifying as Hedging Instruments: Interest rate swaps Interest rate 70,027 5,127 711 58,083 2,867 185 Interest rate floors Interest rate 12,701 424 — 12,701 155 — Interest rate caps Interest rate 55,630 22 — 42,622 18 5 Interest rate futures Interest rate 2,514 1 5 2,423 2 3 Interest rate options Interest rate 27,600 1,269 — 27,344 764 1 Interest rate forwards Interest rate 130 1 2 129 1 2 Interest rate total return swaps Interest rate 1,048 180 — 1,048 5 49 Synthetic GICs Interest rate 33,588 — — 30,341 — — Foreign currency swaps Foreign currency exchange rate 13,807 1,119 788 13,699 644 461 Foreign currency forwards Foreign currency exchange rate 13,376 193 428 13,507 50 393 Currency futures Foreign currency exchange rate 927 5 — 880 7 — Currency options Foreign currency exchange rate 1,800 1 — 1,801 — — Credit default swaps — purchased Credit 2,919 43 68 2,944 4 102 Credit default swaps — written Credit 11,353 30 90 11,520 272 1 Equity futures Equity market 2,586 28 19 4,540 6 8 Equity index options Equity market 25,181 1,237 303 27,105 694 677 Equity variance swaps Equity market 937 34 11 1,115 23 19 Equity total return swaps Equity market 761 188 — 761 — 70 Total non-designated or nonqualifying derivatives 276,885 9,902 2,425 252,563 5,512 1,976 Total $ 337,434 $ 18,869 $ 4,849 $ 311,853 $ 10,084 $ 3,737 |
Components of Net Derivatives Gains (Losses) | Three Months Ended March 31, 2020 Net Investment Income Net Investment Gains (Losses) Net Derivative Gains (Losses) Policyholder Benefits and Claims Interest Credited to Policyholder Account Balances Other Expenses OCI (In millions) Gain (Loss) on Fair Value Hedges: Interest rate derivatives: Derivatives designated as hedging instruments (1) $ (11 ) $ — $ — $ 774 $ — $ — N/A Hedged items 5 — — (769 ) — — N/A Foreign currency exchange rate derivatives: Derivatives designated as hedging instruments (1) 72 12 — — — — N/A Hedged items (65 ) (10 ) — — — — N/A Amount excluded from the assessment of hedge effectiveness — (20 ) — — — — N/A Subtotal 1 (18 ) — 5 — — N/A Gain (Loss) on Cash Flow Hedges: Interest rate derivatives: (1) Amount of gains (losses) deferred in AOCI N/A N/A N/A N/A N/A N/A $ 2,011 Amount of gains (losses) reclassified from AOCI into income 6 6 — — — 1 (13 ) Foreign currency exchange rate derivatives: (1) Amount of gains (losses) deferred in AOCI N/A N/A N/A N/A N/A N/A 1,614 Amount of gains (losses) reclassified from AOCI into income — (451 ) — — — — 451 Foreign currency transaction gains (losses) on hedged items — 453 — — — — — Credit derivatives: (1) Amount of gains (losses) deferred in AOCI N/A N/A N/A N/A N/A N/A 62 Amount of gains (losses) reclassified from AOCI into income — — — — — — — Subtotal 6 8 — — — 1 4,125 Gain (Loss) on NIFO Hedges: Foreign currency exchange rate derivatives (1) N/A N/A N/A N/A N/A N/A 110 Non-derivative hedging instruments N/A N/A N/A N/A N/A N/A (2 ) Subtotal N/A N/A N/A N/A N/A N/A 108 Gain (Loss) on Derivatives Not Designated or Not Qualifying as Hedging Instruments: Interest rate derivatives (1) (4 ) — 4,177 48 — — N/A Foreign currency exchange rate derivatives (1) — — 135 (8 ) — — N/A Credit derivatives — purchased (1) — — 73 — — — N/A Credit derivatives — written (1) — — (311 ) — — — N/A Equity derivatives (1) — — 1,559 208 — — N/A Foreign currency transaction gains (losses) on hedged items — — (157 ) — — — N/A Subtotal (4 ) — 5,476 248 — — N/A Earned income on derivatives 77 — 147 39 (44 ) — — Embedded derivatives (2) N/A N/A (1,422 ) — N/A N/A N/A Total $ 80 $ (10 ) $ 4,201 $ 292 $ (44 ) $ 1 $ 4,233 Three Months Ended March 31, 2019 Net Investment Income Net Investment Gains (Losses) Net Derivative Gains (Losses) Policyholder Benefits and Claims Interest Credited to Policyholder Account Balances Other Expenses OCI (In millions) Gain (Loss) on Fair Value Hedges: Interest rate derivatives: Derivatives designated as hedging instruments (1) $ (3 ) $ — $ — $ 127 $ — $ — N/A Hedged items 3 — — (128 ) — — N/A Foreign currency exchange rate derivatives: Derivatives designated as hedging instruments (1) (30 ) (14 ) — — — — N/A Hedged items 29 12 — — — — N/A Amount excluded from the assessment of hedge effectiveness — (16 ) — — — — N/A Subtotal (1 ) (18 ) — (1 ) — — N/A Gain (Loss) on Cash Flow Hedges: Interest rate derivatives: (1) Amount of gains (losses) deferred in AOCI NA NA NA NA NA NA $ 252 Amount of gains (losses) reclassified from AOCI into income 5 (6 ) — — — 1 — Foreign currency exchange rate derivatives: (1) Amount of gains (losses) deferred in AOCI NA NA NA NA NA NA (241 ) Amount of gains (losses) reclassified from AOCI into income (2 ) 25 — — — — (23 ) Foreign currency transaction gains (losses) on hedged items — (35 ) — — — — — Credit derivatives: (1) Amount of gains (losses) deferred in AOCI NA NA NA NA NA NA — Amount of gains (losses) reclassified from AOCI into income — 1 — — — — (1 ) Subtotal 3 (15 ) — — — 1 (13 ) Gain (Loss) on NIFO Hedges: Foreign currency exchange rate derivatives (1) N/A N/A N/A N/A N/A N/A (6 ) Non-derivative hedging instruments N/A N/A N/A N/A N/A N/A — Subtotal N/A N/A N/A N/A N/A N/A (6 ) Gain (Loss) on Derivatives Not Designated or Not Qualifying as Hedging Instruments: Interest rate derivatives (1) (1 ) — 409 19 — — N/A Foreign currency exchange rate derivatives (1) — — (142 ) 3 — — N/A Credit derivatives — purchased (1) — — (15 ) — — — N/A Credit derivatives — written (1) — — 136 — — — N/A Equity derivatives (1) — — (667 ) (96 ) — — N/A Foreign currency transaction gains (losses) on hedged items — — 82 — — — N/A Subtotal (1 ) — (197 ) (74 ) — — N/A Earned income on derivatives 56 — 119 32 (32 ) — — Embedded derivatives (2) N/A N/A 193 — N/A N/A N/A Total $ 57 $ (33 ) $ 115 $ (43 ) $ (32 ) $ 1 $ (19 ) __________________ (1) Excludes earned income on derivatives. (2) The valuation of guaranteed minimum benefits includes a nonperformance risk adjustment. The amounts included in net derivative gains (losses) in connection with this adjustment were $185 million and ($62) million for the three months ended March 31, 2020 and 2019, respectively. |
Net derivatives gains (losses) recognized on fair value derivatives and the related hedged items | The following table presents the balance sheet classification, carrying amount and cumulative fair value hedging adjustments for items designated and qualifying as hedged items in fair value hedges: Balance Sheet Line Item Carrying Amount of the Hedged Cumulative Amount March 31, 2020 December 31, 2019 March 31, 2020 December 31, 2019 (In millions) Fixed maturity securities AFS $ 2,662 $ 2,736 $ (1 ) $ (1 ) Mortgage loans $ 1,048 $ 1,159 $ 16 $ 2 Future policy benefits $ (5,705 ) $ (4,475 ) $ (1,677 ) $ (908 ) __________________ (1) At both March 31, 2020 and December 31, 2019, the hedging adjustments on discontinued hedging relationships includes ($1) million . |
Schedule of estimated fair value, maximum amount of future payments and weighted average years to maturity of written credit default swaps | The following table presents the estimated fair value, maximum amount of future payments and weighted average years to maturity of written credit default swaps at: March 31, 2020 December 31, 2019 Rating Agency Designation of Referenced Credit Obligations (1) Estimated Fair Value of Credit Default Swaps Maximum Weighted Estimated Fair Value of Credit Default Swaps Maximum Weighted (Dollars in millions) Aaa/Aa/A Single name credit default swaps (3) $ 3 $ 241 2.0 $ 4 $ 298 1.7 Credit default swaps referencing indices — 2,259 2.1 35 2,175 2.2 Subtotal 3 2,500 2.1 39 2,473 2.2 Baa Single name credit default swaps (3) (1 ) 289 1.9 3 216 1.5 Credit default swaps referencing indices (42 ) 8,245 5.2 203 8,539 5.0 Subtotal (43 ) 8,534 5.1 206 8,755 4.9 Ba Single name credit default swaps (3) (2 ) 24 2.7 — 9 5.0 Credit default swaps referencing indices — — — — — — Subtotal (2 ) 24 2.7 — 9 5.0 B Single name credit default swaps (3) — 24 2.9 — 10 0.5 Credit default swaps referencing indices (18 ) 271 4.8 26 273 5.0 Subtotal (18 ) 295 4.7 26 283 4.8 Total $ (60 ) $ 11,353 4.4 $ 271 $ 11,520 4.3 __________________ (1) The rating agency designations are based on availability and the midpoint of the applicable ratings among Moody’s Investors Service (“Moody’s”), S&P Global Ratings (“S&P”) and Fitch Ratings. If no rating is available from a rating agency, then an internally developed rating is used. (2) The weighted average years to maturity of the credit default swaps is calculated based on weighted average gross notional amounts. (3) Single name credit default swaps may be referenced to the credit of corporations, foreign governments, or municipals. |
Estimated Fair Value of Derivative Assets and Liabilities after Master Netting Agreements and Cash Collateral | The estimated fair values of the Company’s net derivative assets and net derivative liabilities after the application of master netting agreements and collateral were as follows at: March 31, 2020 December 31, 2019 Derivatives Subject to a Master Netting Arrangement or a Similar Arrangement Assets Liabilities Assets Liabilities (In millions) Gross estimated fair value of derivatives: OTC-bilateral (1) $ 17,682 $ 4,247 $ 9,574 $ 3,624 OTC-cleared (1) 1,315 612 606 81 Exchange-traded 34 24 15 11 Total gross estimated fair value of derivatives presented on the interim condensed consolidated balance sheets (1) 19,031 4,883 10,195 3,716 Gross amounts not offset on the interim condensed consolidated balance sheets: Gross estimated fair value of derivatives: (2) OTC-bilateral (3,329 ) (3,329 ) (2,664 ) (2,664 ) OTC-cleared (410 ) (410 ) (38 ) (38 ) Exchange-traded (2 ) (2 ) (2 ) (2 ) Cash collateral: (3), (4) OTC-bilateral (11,556 ) — (5,317 ) — OTC-cleared (471 ) (38 ) (560 ) (4 ) Exchange-traded — (13 ) — (5 ) Securities collateral: (5) OTC-bilateral (2,563 ) (881 ) (1,521 ) (935 ) OTC-cleared — (164 ) — (39 ) Exchange-traded — (8 ) — (4 ) Net amount after application of master netting agreements and collateral $ 700 $ 38 $ 93 $ 25 __________________ (1) At March 31, 2020 and December 31, 2019 , derivative assets included income (expense) accruals reported in accrued investment income or in other liabilities of $162 million and $111 million , respectively, and derivative liabilities included (income) expense accruals reported in accrued investment income or in other liabilities of $34 million and ($21) million , respectively. (2) Estimated fair value of derivatives is limited to the amount that is subject to set-off and includes income or expense accruals. (3) Cash collateral received by the Company for OTC-bilateral and OTC-cleared derivatives, where the centralized clearinghouse treats variation margin as collateral, is included in cash and cash equivalents, short-term investments or in fixed maturity securities AFS, and the obligation to return it is included in payables for collateral under securities loaned and other transactions on the balance sheet. (4) The receivable for the return of cash collateral provided by the Company is inclusive of initial margin on exchange-traded and OTC-cleared derivatives and is included in premiums, reinsurance and other receivables on the balance sheet. The amount of cash collateral offset in the table above is limited to the net estimated fair value of derivatives after application of netting agreements. At March 31, 2020 and December 31, 2019 , the Company received excess cash collateral of $285 million and $389 million , respectively, and provided excess cash collateral of $456 million and $266 million , respectively, which is not included in the table above due to the foregoing limitation. (5) Securities collateral received by the Company is held in separate custodial accounts and is not recorded on the balance sheet. Subject to certain constraints, the Company is permitted by contract to sell or re-pledge this collateral, but at March 31, 2020 , none of the collateral had been sold or re-pledged. Securities collateral pledged by the Company is reported in fixed maturity securities AFS on the balance sheet. Subject to certain constraints, the counterparties are permitted by contract to sell or re-pledge this collateral. The amount of securities collateral offset in the table above is limited to the net estimated fair value of derivatives after application of netting agreements and cash collateral. At March 31, 2020 and December 31, 2019 , the Company received excess securities collateral with an estimated fair value of $336 million and $156 million , respectively, for its OTC-bilateral derivatives, which are not included in the table above due to the foregoing limitation. At March 31, 2020 and December 31, 2019 , the Company provided excess securities collateral with an estimated fair value of $355 million and $189 million , respectively, for its OTC-bilateral derivatives, and $2.2 billion and $1.0 billion , respectively, for its OTC-cleared derivatives, and $158 million and $143 million , respectively, for its exchange-traded derivatives, which are not included in the table above due to the foregoing limitation. |
Estimated Fair Value of Derivative Assets and Liabilities after Master Netting Agreements and Cash Collateral | The estimated fair values of the Company’s net derivative assets and net derivative liabilities after the application of master netting agreements and collateral were as follows at: March 31, 2020 December 31, 2019 Derivatives Subject to a Master Netting Arrangement or a Similar Arrangement Assets Liabilities Assets Liabilities (In millions) Gross estimated fair value of derivatives: OTC-bilateral (1) $ 17,682 $ 4,247 $ 9,574 $ 3,624 OTC-cleared (1) 1,315 612 606 81 Exchange-traded 34 24 15 11 Total gross estimated fair value of derivatives presented on the interim condensed consolidated balance sheets (1) 19,031 4,883 10,195 3,716 Gross amounts not offset on the interim condensed consolidated balance sheets: Gross estimated fair value of derivatives: (2) OTC-bilateral (3,329 ) (3,329 ) (2,664 ) (2,664 ) OTC-cleared (410 ) (410 ) (38 ) (38 ) Exchange-traded (2 ) (2 ) (2 ) (2 ) Cash collateral: (3), (4) OTC-bilateral (11,556 ) — (5,317 ) — OTC-cleared (471 ) (38 ) (560 ) (4 ) Exchange-traded — (13 ) — (5 ) Securities collateral: (5) OTC-bilateral (2,563 ) (881 ) (1,521 ) (935 ) OTC-cleared — (164 ) — (39 ) Exchange-traded — (8 ) — (4 ) Net amount after application of master netting agreements and collateral $ 700 $ 38 $ 93 $ 25 __________________ (1) At March 31, 2020 and December 31, 2019 , derivative assets included income (expense) accruals reported in accrued investment income or in other liabilities of $162 million and $111 million , respectively, and derivative liabilities included (income) expense accruals reported in accrued investment income or in other liabilities of $34 million and ($21) million , respectively. (2) Estimated fair value of derivatives is limited to the amount that is subject to set-off and includes income or expense accruals. (3) Cash collateral received by the Company for OTC-bilateral and OTC-cleared derivatives, where the centralized clearinghouse treats variation margin as collateral, is included in cash and cash equivalents, short-term investments or in fixed maturity securities AFS, and the obligation to return it is included in payables for collateral under securities loaned and other transactions on the balance sheet. (4) The receivable for the return of cash collateral provided by the Company is inclusive of initial margin on exchange-traded and OTC-cleared derivatives and is included in premiums, reinsurance and other receivables on the balance sheet. The amount of cash collateral offset in the table above is limited to the net estimated fair value of derivatives after application of netting agreements. At March 31, 2020 and December 31, 2019 , the Company received excess cash collateral of $285 million and $389 million , respectively, and provided excess cash collateral of $456 million and $266 million , respectively, which is not included in the table above due to the foregoing limitation. (5) Securities collateral received by the Company is held in separate custodial accounts and is not recorded on the balance sheet. Subject to certain constraints, the Company is permitted by contract to sell or re-pledge this collateral, but at March 31, 2020 , none of the collateral had been sold or re-pledged. Securities collateral pledged by the Company is reported in fixed maturity securities AFS on the balance sheet. Subject to certain constraints, the counterparties are permitted by contract to sell or re-pledge this collateral. The amount of securities collateral offset in the table above is limited to the net estimated fair value of derivatives after application of netting agreements and cash collateral. At March 31, 2020 and December 31, 2019 , the Company received excess securities collateral with an estimated fair value of $336 million and $156 million , respectively, for its OTC-bilateral derivatives, which are not included in the table above due to the foregoing limitation. At March 31, 2020 and December 31, 2019 , the Company provided excess securities collateral with an estimated fair value of $355 million and $189 million , respectively, for its OTC-bilateral derivatives, and $2.2 billion and $1.0 billion , respectively, for its OTC-cleared derivatives, and $158 million and $143 million , respectively, for its exchange-traded derivatives, which are not included in the table above due to the foregoing limitation. |
Derivative Instruments, Gain (Loss) [Line Items] | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | 7. Derivatives Accounting for Derivatives Freestanding Derivatives Freestanding derivatives are carried on the Company’s balance sheet either as assets within other invested assets or as liabilities within other liabilities at estimated fair value. The Company does not offset the estimated fair value amounts recognized for derivatives executed with the same counterparty under the same master netting agreement. Accruals on derivatives are generally recorded in accrued investment income or within other liabilities. However, accruals that are not scheduled to settle within one year are included with the derivative’s carrying value in other invested assets or other liabilities. If a derivative is not designated as an accounting hedge or its use in managing risk does not qualify for hedge accounting, changes in the estimated fair value of the derivative are reported in net derivative gains (losses) except as follows: Statement of Operations Presentation: Derivative: Policyholder benefits and claims • Economic hedges of variable annuity guarantees included in future policy benefits Net investment income • Economic hedges of equity method investments in joint ventures • Derivatives held within Unit-linked investments Hedge Accounting To qualify for hedge accounting, at the inception of the hedging relationship, the Company formally documents its risk management objective and strategy for undertaking the hedging transaction, as well as its designation of the hedge. Hedge designation and financial statement presentation of changes in estimated fair value of the hedging derivatives are as follows: • Fair value hedge - a hedge of the estimated fair value of a recognized asset or liability - in the same line item as the earnings effect of the hedged item. The carrying value of the hedged recognized asset or liability is adjusted for changes in its estimated fair value due to the hedged risk. • Cash flow hedge - a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability - in OCI and reclassified into the statement of operations when the Company’s earnings are affected by the variability in cash flows of the hedged item. • Net investment in a foreign operation (“NIFO”) hedge - in OCI, consistent with the translation adjustment for the hedged net investment in the foreign operation. The changes in estimated fair values of the hedging derivatives are exclusive of any accruals that are separately reported on the statement of operations within interest income or interest expense to match the location of the hedged item. Accruals on derivatives in net investment hedges are recognized in OCI. In its hedge documentation, the Company sets forth how the hedging instrument is expected to hedge the designated risks related to the hedged item and sets forth the method that will be used to retrospectively and prospectively assess the hedging instrument’s effectiveness. A derivative designated as a hedging instrument must be assessed as being highly effective in offsetting the designated risk of the hedged item. Hedge effectiveness is formally assessed at inception and at least quarterly throughout the life of the designated hedging relationship. Assessments of hedge effectiveness are also subject to interpretation and estimation and different interpretations or estimates may have a material effect on the amount reported in net income. The Company discontinues hedge accounting prospectively when: (i) it is determined that the derivative is no longer highly effective in offsetting changes in the estimated fair value or cash flows of a hedged item, (ii) the derivative expires, is sold, terminated, or exercised, (iii) it is no longer probable that the hedged forecasted transaction will occur, or (iv) the derivative is de-designated as a hedging instrument. When hedge accounting is discontinued because it is determined that the derivative is not highly effective in offsetting changes in the estimated fair value or cash flows of a hedged item, the derivative continues to be carried on the balance sheet at its estimated fair value, with changes in estimated fair value recognized in net derivative gains (losses). The carrying value of the hedged recognized asset or liability under a fair value hedge is no longer adjusted for changes in its estimated fair value due to the hedged risk, and the cumulative adjustment to its carrying value is amortized into income over the remaining life of the hedged item. Provided the hedged forecasted transaction is still probable of occurring, the changes in estimated fair value of derivatives recorded in OCI related to discontinued cash flow hedges are released into the statement of operations when the Company’s earnings are affected by the variability in cash flows of the hedged item. When hedge accounting is discontinued because it is no longer probable that the forecasted transactions will occur on the anticipated date or within two months of that date, the derivative continues to be carried on the balance sheet at its estimated fair value, with changes in estimated fair value recognized currently in net derivative gains (losses). Deferred gains and losses of a derivative recorded in OCI pursuant to the discontinued cash flow hedge of a forecasted transaction that is no longer probable of occurring are recognized immediately in net investment gains (losses). In all other situations in which hedge accounting is discontinued, the derivative is carried at its estimated fair value on the balance sheet, with changes in its estimated fair value recognized in the current period as net derivative gains (losses). Embedded Derivatives The Company issues certain products, which include variable annuities and investment contracts, and is a party to certain reinsurance agreements that have embedded derivatives. The Company assesses each identified embedded derivative to determine whether it is required to be bifurcated. The embedded derivative is bifurcated from the host contract and accounted for as a freestanding derivative if: • the combined instrument is not accounted for in its entirety at estimated fair value with changes in estimated fair value recorded in earnings; • the terms of the embedded derivative are not clearly and closely related to the economic characteristics of the host contract; and • a separate instrument with the same terms as the embedded derivative would qualify as a derivative instrument. Such embedded derivatives are carried on the balance sheet at estimated fair value with the host contract and changes in their estimated fair value are generally reported in net derivative gains (losses). If the Company is unable to properly identify and measure an embedded derivative for separation from its host contract, the entire contract is carried on the balance sheet at estimated fair value, with changes in estimated fair value recognized in the current period in net investment gains (losses) or net investment income. Additionally, the Company may elect to carry an entire contract on the balance sheet at estimated fair value, with changes in estimated fair value recognized in the current period in net investment gains (losses) or net investment income if that contract contains an embedded derivative that requires bifurcation. At inception, the Company attributes to the embedded derivative a portion of the projected future guarantee fees to be collected from the policyholder equal to the present value of projected future guaranteed benefits. Any additional fees represent “excess” fees and are reported in universal life and investment-type product policy fees. See Note 8 for information about the fair value hierarchy for derivatives. Derivative Strategies The Company is exposed to various risks relating to its ongoing business operations, including interest rate, foreign currency exchange rate, credit and equity market. The Company uses a variety of strategies to manage these risks, including the use of derivatives. Derivatives are financial instruments with values derived from interest rates, foreign currency exchange rates, credit spreads and/or other financial indices. Derivatives may be exchange-traded or contracted in the over-the-counter (“OTC”) market. Certain of the Company’s OTC derivatives are cleared and settled through central clearing counterparties (“OTC-cleared”), while others are bilateral contracts between two counterparties (“OTC-bilateral”). The types of derivatives the Company uses include swaps, forwards, futures and option contracts. To a lesser extent, the Company uses credit default swaps and structured interest rate swaps to synthetically replicate investment risks and returns which are not readily available in the cash markets. Interest Rate Derivatives The Company uses a variety of interest rate derivatives to reduce its exposure to changes in interest rates, including interest rate swaps, interest rate total return swaps, caps, floors, swaptions, futures and forwards. Interest rate swaps are used by the Company primarily to reduce market risks from changes in interest rates and to alter interest rate exposure arising from mismatches between assets and liabilities (duration mismatches). In an interest rate swap, the Company agrees with another party to exchange, at specified intervals, the difference between fixed rate and floating rate interest amounts as calculated by reference to an agreed notional amount. The Company utilizes interest rate swaps in fair value, cash flow and nonqualifying hedging relationships. The Company uses structured interest rate swaps to synthetically create investments that are either more expensive to acquire or otherwise unavailable in the cash markets. These transactions are a combination of a derivative and a cash instrument such as a U.S. government and agency, or other fixed maturity securities AFS. Structured interest rate swaps are included in interest rate swaps and are not designated as hedging instruments. Interest rate total return swaps are swaps whereby the Company agrees with another party to exchange, at specified intervals, the difference between the economic risk and reward of an asset or a market index and a benchmark interest rate, calculated by reference to an agreed notional amount. No cash is exchanged at the outset of the contract. Cash is paid and received over the life of the contract based on the terms of the swap. These transactions are entered into pursuant to master agreements that provide for a single net payment to be made by the counterparty at each due date. Interest rate total return swaps are used by the Company to reduce market risks from changes in interest rates and to alter interest rate exposure arising from mismatches between assets and liabilities (duration mismatches). The Company utilizes interest rate total return swaps in nonqualifying hedging relationships. The Company purchases interest rate caps primarily to protect its floating rate liabilities against rises in interest rates above a specified level, and against interest rate exposure arising from mismatches between assets and liabilities, and interest rate floors primarily to protect its minimum rate guarantee liabilities against declines in interest rates below a specified level. In certain instances, the Company locks in the economic impact of existing purchased caps and floors by entering into offsetting written caps and floors. The Company utilizes interest rate caps and floors in nonqualifying hedging relationships. In exchange-traded interest rate (Treasury and swap) futures transactions, the Company agrees to purchase or sell a specified number of contracts, the value of which is determined by the different classes of interest rate securities, to post variation margin on a daily basis in an amount equal to the difference in the daily market values of those contracts and to pledge initial margin based on futures exchange requirements. The Company enters into exchange-traded futures with regulated futures commission merchants that are members of the exchange. Exchange-traded interest rate (Treasury and swap) futures are used primarily to hedge mismatches between the duration of assets in a portfolio and the duration of liabilities supported by those assets, to hedge against changes in value of securities the Company owns or anticipates acquiring, to hedge against changes in interest rates on anticipated liability issuances by replicating Treasury or swap curve performance, and to hedge minimum guarantees embedded in certain variable annuity products issued by the Company. The Company utilizes exchange-traded interest rate futures in nonqualifying hedging relationships. Swaptions are used by the Company to hedge interest rate risk associated with the Company’s long-term liabilities and invested assets. A swaption is an option to enter into a swap with a forward starting effective date. In certain instances, the Company locks in the economic impact of existing purchased swaptions by entering into offsetting written swaptions. The Company pays a premium for purchased swaptions and receives a premium for written swaptions. The Company utilizes swaptions in nonqualifying hedging relationships. Swaptions are included in interest rate options. The Company enters into interest rate forwards to buy and sell securities. The price is agreed upon at the time of the contract and payment for such a contract is made at a specified future date. The Company utilizes interest rate forwards in cash flow and nonqualifying hedging relationships. A synthetic guaranteed interest contract (“GIC”) is a contract that simulates the performance of a traditional GIC through the use of financial instruments. The contractholder owns the underlying assets, and the Company provides a guarantee (or “wrap”) on the participant funds for an annual risk charge. The Company’s maximum exposure to loss on synthetic GICs is the notional amount, in the event the values of all of the underlying assets were reduced to zero. The Company’s risk is substantially lower due to contractual provisions that limit the portfolio to high quality assets, which are pre-approved and monitored for compliance, as well as the collection of risk charges. In addition, the crediting rates reset periodically to amortize market value gains and losses over a period equal to the duration of the wrapped portfolio, subject to a 0% floor. While plan participants may transact at book value, contractholder withdrawals may only occur immediately at market value, or at book value paid over a period of time per contract provisions. Synthetic GICs are not designated as hedging instruments. Foreign Currency Exchange Rate Derivatives The Company uses foreign currency exchange rate derivatives, including foreign currency swaps, foreign currency forwards, currency options and exchange-traded currency futures, to reduce the risk from fluctuations in foreign currency exchange rates associated with its assets and liabilities denominated in foreign currencies. The Company also uses foreign currency derivatives to hedge the foreign currency exchange rate risk associated with certain of its net investments in foreign operations. In a foreign currency swap transaction, the Company agrees with another party to exchange, at specified intervals, the difference between one currency and another at a fixed exchange rate, generally set at inception, calculated by reference to an agreed upon notional amount. The notional amount of each currency is exchanged at the inception and termination of the currency swap by each party. The Company utilizes foreign currency swaps in fair value, cash flow and nonqualifying hedging relationships. In a foreign currency forward transaction, the Company agrees with another party to deliver a specified amount of an identified currency at a specified future date. The price is agreed upon at the time of the contract and payment for such a contract is made at the specified future date. The Company utilizes foreign currency forwards in fair value, NIFO hedges and nonqualifying hedging relationships. The Company enters into currency options that give it the right, but not the obligation, to sell the foreign currency amount in exchange for a functional currency amount within a limited time at a contracted price. The contracts may also be net settled in cash, based on differentials in the foreign currency exchange rate and the strike price. The Company uses currency options to hedge against the foreign currency exposure inherent in certain of its variable annuity products. The Company also uses currency options as an economic hedge of foreign currency exposure related to the Company’s non-U.S. subsidiaries. The Company utilizes currency options in NIFO hedges and nonqualifying hedging relationships. To a lesser extent, the Company uses exchange-traded currency futures to hedge currency mismatches between assets and liabilities, and to hedge minimum guarantees embedded in certain variable annuity products issued by the Company. The Company utilizes exchange-traded currency futures in nonqualifying hedging relationships. Credit Derivatives The Company enters into purchased credit default swaps to hedge against credit-related changes in the value of its investments. In a credit default swap transaction, the Company agrees with another party to pay, at specified intervals, a premium to hedge credit risk. If a credit event occurs, as defined by the contract, the contract may be cash settled or it may be settled gross by the delivery of par quantities of the referenced investment equal to the specified swap notional amount in exchange for the payment of cash amounts by the counterparty equal to the par value of the investment surrendered. Credit events vary by type of issuer but typically include bankruptcy, failure to pay debt obligations and involuntary restructuring for corporate obligors, as well as repudiation, moratorium or governmental intervention for sovereign obligors. In each case, payout on a credit default swap is triggered only after the Credit Derivatives Determinations Committee of the International Swaps and Derivatives Association, Inc. (“ISDA”) deems that a credit event has occurred. The Company utilizes credit default swaps in nonqualifying hedging relationships. The Company enters into written credit default swaps to synthetically create credit investments that are either more expensive to acquire or otherwise unavailable in the cash markets. These transactions are a combination of a derivative and one or more cash instruments, such as U.S. government and agency, or other fixed maturity securities AFS. These credit default swaps are not designated as hedging instruments. The Company enters into forwards to lock in the price to be paid for forward purchases of certain securities. The price is agreed upon at the time of the contract and payment for the contract is made at a specified future date. When the primary purpose of entering into these transactions is to hedge against the risk of changes in purchase price due to changes in credit spreads, the Company designates these transactions as credit forwards. The Company utilizes credit forwards in cash flow hedging relationships. Equity Derivatives The Company uses a variety of equity derivatives to reduce its exposure to equity market risk, including equity index options, equity variance swaps, exchange-traded equity futures and equity total return swaps. Equity index options are used by the Company primarily to hedge minimum guarantees embedded in certain variable annuity products issued by the Company. To hedge against adverse changes in equity indices, the Company enters into contracts to sell the underlying equity index within a limited time at a contracted price. The contracts will be net settled in cash based on differentials in the indices at the time of exercise and the strike price. Certain of these contracts may also contain settlement provisions linked to interest rates. In certain instances, the Company may enter into a combination of transactions to hedge adverse changes in equity indices within a pre-determined range through the purchase and sale of options. The Company utilizes equity index options in nonqualifying hedging relationships. Equity variance swaps are used by the Company primarily to hedge minimum guarantees embedded in certain variable annuity products issued by the Company. In an equity variance swap, the Company agrees with another party to exchange amounts in the future, based on changes in equity volatility over a defined period. The Company utilizes equity variance swaps in nonqualifying hedging relationships. In exchange-traded equity futures transactions, the Company agrees to purchase or sell a specified number of contracts, the value of which is determined by the different classes of equity securities, to post variation margin on a daily basis in an amount equal to the difference in the daily market values of those contracts and to pledge initial margin based on futures exchange requirements. The Company enters into exchange-traded futures with regulated futures commission merchants that are members of the exchange. Exchange-traded equity futures are used primarily to hedge minimum guarantees embedded in certain variable annuity products issued by the Company. The Company utilizes exchange-traded equity futures in nonqualifying hedging relationships. In an equity total return swap, the Company agrees with another party to exchange, at specified intervals, the difference between the economic risk and reward of an asset or a market index and a benchmark interest rate, calculated by reference to an agreed notional amount. No cash is exchanged at the outset of the contract. Cash is paid and received over the life of the contract based on the terms of the swap. The Company uses equity total return swaps to hedge its equity market guarantees in certain of its insurance products. Equity total return swaps can be used as hedges or to synthetically create investments. The Company utilizes equity total return swaps in nonqualifying hedging relationships. Primary Risks Managed by Derivatives The following table presents the primary underlying risk exposure, gross notional amount, and estimated fair value of the Company’s derivatives, excluding embedded derivatives, held at: March 31, 2020 December 31, 2019 Primary Underlying Risk Exposure Gross Estimated Fair Value Gross Estimated Fair Value Assets Liabilities Assets Liabilities (In millions) Derivatives Designated as Hedging Instruments: Fair value hedges: Interest rate swaps Interest rate $ 3,240 $ 3,394 $ 10 $ 2,369 $ 2,667 $ 2 Foreign currency swaps Foreign currency exchange rate 1,304 71 — 1,304 16 17 Foreign currency forwards Foreign currency exchange rate 2,236 11 26 2,336 1 40 Subtotal 6,780 3,476 36 6,009 2,684 59 Cash flow hedges: Interest rate swaps Interest rate 5,084 181 27 3,675 145 27 Interest rate forwards Interest rate 7,239 1,037 — 7,364 83 144 Foreign currency swaps Foreign currency exchange rate 37,187 4,141 2,359 36,983 1,627 1,430 Subtotal 49,510 5,359 2,386 48,022 1,855 1,601 NIFO hedges: Foreign currency forwards Foreign currency exchange rate 1,059 67 2 1,059 — 10 Currency options Foreign currency exchange rate 3,200 65 — 4,200 33 91 Subtotal 4,259 132 2 5,259 33 101 Total qualifying hedges 60,549 8,967 2,424 59,290 4,572 1,761 Derivatives Not Designated or Not Qualifying as Hedging Instruments: Interest rate swaps Interest rate 70,027 5,127 711 58,083 2,867 185 Interest rate floors Interest rate 12,701 424 — 12,701 155 — Interest rate caps Interest rate 55,630 22 — 42,622 18 5 Interest rate futures Interest rate 2,514 1 5 2,423 2 3 Interest rate options Interest rate 27,600 1,269 — 27,344 764 1 Interest rate forwards Interest rate 130 1 2 129 1 2 Interest rate total return swaps Interest rate 1,048 180 — 1,048 5 49 Synthetic GICs Interest rate 33,588 — — 30,341 — — Foreign currency swaps Foreign currency exchange rate 13,807 1,119 788 13,699 644 461 Foreign currency forwards Foreign currency exchange rate 13,376 193 428 13,507 50 393 Currency futures Foreign currency exchange rate 927 5 — 880 7 — Currency options Foreign currency exchange rate 1,800 1 — 1,801 — — Credit default swaps — purchased Credit 2,919 43 68 2,944 4 102 Credit default swaps — written Credit 11,353 30 90 11,520 272 1 Equity futures Equity market 2,586 28 19 4,540 6 8 Equity index options Equity market 25,181 1,237 303 27,105 694 677 Equity variance swaps Equity market 937 34 11 1,115 23 19 Equity total return swaps Equity market 761 188 — 761 — 70 Total non-designated or nonqualifying derivatives 276,885 9,902 2,425 252,563 5,512 1,976 Total $ 337,434 $ 18,869 $ 4,849 $ 311,853 $ 10,084 $ 3,737 Based on gross notional amounts, a substantial portion of the Company’s derivatives was not designated or did not qualify as part of a hedging relationship at both March 31, 2020 and December 31, 2019 . The Company’s use of derivatives includes (i) derivatives that serve as macro hedges of the Company’s exposure to various risks and that generally do not qualify for hedge accounting due to the criteria required under the portfolio hedging rules, (ii) derivatives that economically hedge insurance liabilities that contain mortality or morbidity risk and that generally do not qualify for hedge accounting because the lack of these risks in the derivatives cannot support an expectation of a highly effective hedging relationship, (iii) derivatives that economically hedge embedded derivatives that do not qualify for hedge accounting because the changes in estimated fair value of the embedded derivatives are already recorded in net income, and (iv) written credit default swaps and interest rate swaps that are used to synthetically create investments and that do not qualify for hedge accounting because they do not involve a hedging relationship. For these nonqualified derivatives, changes in market factors can lead to the recognition of fair value changes on the statement of operations without an offsetting gain or loss recognized in earnings for the item being hedged. The Effects of Derivatives on the Interim Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) The following table presents the consolidated financial statement location and amount of gain (loss) recognized on fair value, cash flow, NIFO, nonqualifying hedging relationships and embedded derivatives: Three Months Ended March 31, 2020 Net Investment Income Net Investment Gains (Losses) Net Derivative Gains (Losses) Policyholder Benefits and Claims Interest Credited to Policyholder Account Balances Other Expenses OCI (In millions) Gain (Loss) on Fair Value Hedges: Interest rate derivatives: Derivatives designated as hedging instruments (1) $ (11 ) $ — $ — $ 774 $ — $ — N/A Hedged items 5 — — (769 ) — — N/A Foreign currency exchange rate derivatives: Derivatives designated as hedging instruments (1) 72 12 — — — — N/A Hedged items (65 ) (10 ) — — — — N/A Amount excluded from the assessment of hedge effectiveness — (20 ) — — — — N/A Subtotal 1 (18 ) — 5 — — N/A Gain (Loss) on Cash Flow Hedges: Interest rate derivatives: (1) Amount of gains (losses) deferred in AOCI N/A N/A N/A N/A N/A N/A $ 2,011 Amount of gains (losses) reclassified from AOCI into income 6 6 — — — 1 (13 ) Foreign currency exchange rate derivatives: (1) Amount of gains (losses) deferred in AOCI N/A N/A N/A N/A N/A N/A 1,614 Amount of gains (losses) reclassified from AOCI into income — (451 ) — — — — 451 Foreign currency transaction gains (losses) on hedged items — 453 — — — — — Credit derivatives: (1) Amount of gains (losses) deferred in AOCI N/A N/A N/A N/A N/A N/A 62 Amount of gains (losses) reclassified from AOCI into income — — — — — — — Subtotal 6 8 — — — 1 4,125 Gain (Loss) on NIFO Hedges: Foreign currency exchange rate derivatives (1) N/A N/A N/A N/A N/A N/A 110 Non-derivative hedging instruments N/A N/A N/A N/A N/A N/A (2 ) Subtotal N/A N/A N/A N/A N/A N/A 108 Gain (Loss) on Derivatives Not Designated or Not Qualifying as Hedging Instruments: Interest rate derivatives (1) (4 ) — 4,177 48 — — N/A Foreign currency exchange rate derivatives (1) — — 135 (8 ) — — N/A Credit derivatives — purchased (1) — — 73 — — — N/A Credit derivatives — written (1) — — (311 ) — — — N/A Equity derivatives (1) — — 1,559 208 — — N/A Foreign currency transaction gains (losses) on hedged items — — (157 ) — — — N/A Subtotal (4 ) — 5,476 248 — — N/A Earned income on derivatives 77 — 147 39 (44 ) — — Embedded derivatives (2) N/A N/A (1,422 ) — N/A N/A N/A Total $ 80 $ (10 ) $ 4,201 $ 292 $ (44 ) $ 1 $ 4,233 Three Months Ended March 31, 2019 Net Investment Income Net Investment Gains (Losses) Net Derivative Gains (Losses) Policyholder Benefits and Claims Interest Credited to Policyholder Account Balances Other Expenses OCI (In millions) Gain (Loss) on Fair Value Hedges: Interest rate derivatives: Derivatives designated as hedging instruments (1) $ (3 ) $ — $ — $ 127 $ — $ — N/A Hedged items 3 — — (128 ) — — N/A Foreign currency exchange rate derivatives: Derivatives designated as hedging instruments (1) (30 ) (14 ) — — — — N/A Hedged items 29 12 — — — — N/A Amount excluded from the assessment of hedge effectiveness — (16 ) — — — — N/A Subtotal (1 ) (18 ) — (1 ) — — N/A Gain (Loss) on Cash Flow Hedges: Interest rate derivatives: (1) Amount of gains (losses) deferred in AOCI NA NA NA NA NA NA $ 252 Amount of gains (losses) reclassified from AOCI into income 5 (6 ) — — — 1 — Foreign currency exchange rate derivatives: (1) Amount of gains (losses) deferred in AOCI NA NA NA NA NA NA (241 ) Amount of gains (losses) reclassified from AOCI into income (2 ) 25 — — — — (23 ) Foreign currency transaction gains (losses) on hedged items — (35 ) — — — — — Credit derivatives: (1) Amount of gains (losses) deferred in AOCI NA NA NA NA NA NA — Amount of gains (losses) reclassified from AOCI into income — 1 — — — — (1 ) Subtotal 3 (15 ) — — — 1 (13 ) Gain (Loss) on NIFO Hedges: Foreign currency exchange rate derivatives (1) N/A N/A N/A N/A N/A N/A (6 ) Non-derivative hedging instruments N/A N/A N/A N/A N/A N/A — Subtotal N/A N/A N/A N/A N/A N/A (6 ) Gain (Loss) on Derivatives Not Designated or Not Qualifying as Hedging Instruments: Interest rate derivatives (1) (1 ) — 409 19 — — N/A Foreign currency exchange rate derivatives (1) — — (142 ) 3 — — N/A Credit derivatives — purchased (1) — — (15 ) — — — N/A Credit derivatives — written (1) — — 136 — — — N/A Equity derivatives (1) — — (667 ) (96 ) — — N/A Foreign currency transaction gains (losses) on hedged items — — 82 — — — N/A Subtotal (1 ) — (197 ) (74 ) — — N/A Earned income on derivatives 56 — 119 32 (32 ) — — Embedded derivatives (2) N/A N/A 193 — N/A N/A N/A Total $ 57 $ (33 ) $ 115 $ (43 ) $ (32 ) $ 1 $ (19 ) __________________ (1) Excludes earned income on derivatives. (2) The valuation of guaranteed minimum benefits includes a nonperformance risk adjustment. The amounts included in net derivative gains (losses) in connection with this adjustment were $185 million and ($62) million for the three months ended March 31, 2020 and 2019, respectively. Fair Value Hedges The Company designates and accounts for the following as fair value hedges when they have met the requirements of fair value hedging: (i) interest rate swaps to convert fixed rate assets and liabilities to floating rate assets and liabilities, (ii) foreign currency swaps to hedge the foreign currency fair value exposure of foreign currency denominated assets and liabilities, and (iii) foreign currency forwards to hedge the foreign currency fair value exposure of foreign currency denominated investments. The following table presents the balance sheet classification, carrying amount and cumulative fair value hedging adjustments for items designated and qualifying as hedged items in fair value hedges: Balance Sheet Line Item Carrying Amount of the Hedged Cumulative Amount March 31, 2020 December 31, 2019 March 31, 2020 December 31, 2019 (In millions) Fixed maturity securities AFS $ 2,662 $ 2,736 $ (1 ) $ (1 ) Mortgage loans $ 1,048 $ 1,159 $ 16 $ 2 Future policy benefits $ (5,705 ) $ (4,475 ) $ (1,677 ) $ (908 ) __________________ (1) At both March 31, 2020 and December 31, 2019, the hedging adjustments on discontinued hedging relationships includes ($1) million . Cash Flow Hedges The Company designates and accounts for the following as cash flow hedges when they have met the requirements of cash flow hedging: (i) interest rate swaps to convert floating rate assets and liabilities to fixed rate assets and liabilitie |
Schedule of Derivative Instruments | The following table presents the estimated fair value of the Company’s OTC-bilateral derivatives that were in a net liability position after considering the effect of netting agreements, together with the estimated fair value and balance sheet location of the collateral pledged. March 31, 2020 December 31, 2019 Derivatives Derivatives Total Derivatives Subject to Credit- Contingent Provisions Derivatives Total (In millions) Estimated Fair Value of Derivatives in a Net Liability Position (1) $ 694 $ 224 $ 918 $ 874 $ 85 $ 959 Estimated Fair Value of Collateral Provided: Fixed maturity securities AFS $ 874 $ 222 $ 1,096 $ 983 $ 80 $ 1,063 __________________ (1) After taking into consideration the existence of netting agreements. |
Embedded Derivative Financial Instruments [Member] | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Schedule of Derivative Instruments | The following table presents the estimated fair value and balance sheet location of the Company’s embedded derivatives that have been separated from their host contracts at: Balance Sheet Location March 31, 2020 December 31, 2019 (In millions) Embedded derivatives within asset host contracts: Ceded guaranteed minimum benefits Premiums, reinsurance and other receivables $ 76 $ 60 Embedded derivatives within liability host contracts: Direct guaranteed minimum benefits Policyholder account balances $ 1,721 $ 312 Assumed guaranteed minimum benefits Policyholder account balances 532 312 Funds withheld on ceded reinsurance Other liabilities (38 ) 36 Fixed annuities with equity indexed returns Policyholder account balances 62 130 Other guarantees Policyholder account balances 31 12 Embedded derivatives within liability host contracts $ 2,308 $ 802 |
Fair Value (Tables)
Fair Value (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Recurring Fair Value Measurements | The assets and liabilities measured at estimated fair value on a recurring basis and their corresponding placement in the fair value hierarchy, including those items for which the Company has elected the FVO, are presented below at: March 31, 2020 Fair Value Hierarchy Level 1 Level 2 Level 3 Total (In millions) Assets Fixed maturity securities AFS: U.S. corporate $ — $ 75,876 $ 9,195 $ 85,071 Foreign government — 64,740 104 64,844 Foreign corporate — 48,581 10,614 59,195 U.S. government and agency 21,060 26,899 — 47,959 RMBS 161 27,676 2,632 30,469 ABS — 13,878 960 14,838 Municipals — 13,871 — 13,871 CMBS — 10,016 422 10,438 Total fixed maturity securities AFS 21,221 281,537 23,927 326,685 Equity securities 547 131 372 1,050 Unit-linked and FVO Securities (1) 8,812 1,816 517 11,145 Short-term investments (2) 2,917 2,150 368 5,435 Residential mortgage loans — FVO — — 180 180 Other investments 65 157 475 697 Derivative assets: (3) Interest rate 1 10,417 1,218 11,636 Foreign currency exchange rate 5 5,651 17 5,673 Credit — 53 20 73 Equity market 28 1,392 67 1,487 Total derivative assets 34 17,513 1,322 18,869 Embedded derivatives within asset host contracts (4) — — 76 76 Separate account assets (5) 73,366 94,027 1,061 168,454 Total assets (6) $ 106,962 $ 397,331 $ 28,298 $ 532,591 Liabilities Derivative liabilities: (3) Interest rate $ 5 $ 748 $ 2 $ 755 Foreign currency exchange rate — 3,354 249 3,603 Credit — 137 21 158 Equity market 19 303 11 333 Total derivative liabilities 24 4,542 283 4,849 Embedded derivatives within liability host contracts (4) — — 2,308 2,308 Separate account liabilities (5) 4 46 15 65 Total liabilities $ 28 $ 4,588 $ 2,606 $ 7,222 December 31, 2019 Fair Value Hierarchy Level 1 Level 2 Level 3 Total (In millions) Assets Fixed maturity securities AFS: U.S. corporate $ — $ 81,501 $ 6,252 $ 87,753 Foreign government — 67,112 117 67,229 Foreign corporate — 56,188 7,977 64,165 U.S. government and agency 21,058 21,026 — 42,084 RMBS 3 25,682 2,862 28,547 ABS — 13,326 1,216 14,542 Municipals — 13,046 7 13,053 CMBS — 10,067 380 10,447 Total fixed maturity securities AFS 21,061 287,948 18,811 327,820 Equity securities 794 118 430 1,342 Unit-linked and FVO Securities (1) 10,598 1,879 625 13,102 Short-term investments (2) 2,042 1,108 32 3,182 Residential mortgage loans — FVO — — 188 188 Other investments 74 160 455 689 Derivative assets: (3) Interest rate 2 6,616 89 6,707 Foreign currency exchange rate 7 2,336 35 2,378 Credit — 244 32 276 Equity market 6 686 31 723 Total derivative assets 15 9,882 187 10,084 Embedded derivatives within asset host contracts (4) — — 60 60 Separate account assets (5) 86,790 100,668 987 188,445 Total assets (6) $ 121,374 $ 401,763 $ 21,775 $ 544,912 Liabilities Derivative liabilities: (3) Interest rate $ 3 $ 220 $ 195 $ 418 Foreign currency exchange rate — 2,324 118 2,442 Credit — 102 1 103 Equity market 8 747 19 774 Total derivative liabilities 11 3,393 333 3,737 Embedded derivatives within liability host contracts (4) — — 802 802 Separate account liabilities (5) 1 14 7 22 Total liabilities $ 12 $ 3,407 $ 1,142 $ 4,561 __________________ (1) Unit-linked and FVO Securities were primarily comprised of Unit-linked investments at both March 31, 2020 and December 31, 2019. (2) Short-term investments as presented in the tables above differ from the amounts presented on the interim condensed consolidated balance sheets because certain short-term investments are not measured at estimated fair value on a recurring basis. (3) Derivative assets are presented within other invested assets on the interim condensed consolidated balance sheets and derivative liabilities are presented within other liabilities on the interim condensed consolidated balance sheets. The amounts are presented gross in the tables above to reflect the presentation on the interim condensed consolidated balance sheets, but are presented net for purposes of the rollforward in the Fair Value Measurements Using Significant Unobservable Inputs (Level 3) tables. (4) Embedded derivatives within asset host contracts are presented within premiums, reinsurance and other receivables and other invested assets on the interim condensed consolidated balance sheets. Embedded derivatives within liability host contracts are presented within policyholder account balances and other liabilities on the interim condensed consolidated balance sheets. (5) Investment performance related to separate account assets is fully offset by corresponding amounts credited to contractholders whose liability is reflected within separate account liabilities. Separate account liabilities are set equal to the estimated fair value of separate account assets. Separate account liabilities presented in the tables above represent derivative liabilities. (6) Total assets included in the fair value hierarchy exclude other limited partnership interests that are measured at estimated fair value using the net asset value (“NAV”) per share (or its equivalent) practical expedient. At March 31, 2020 and December 31, 2019, the estimated fair value of such investments was $92 million and $95 million , respectively. |
Fair Value Inputs, Quantitative Information | The following table presents certain quantitative information about the significant unobservable inputs used in the fair value measurement, and the sensitivity of the estimated fair value to changes in those inputs, for the more significant asset and liability classes measured at fair value on a recurring basis using significant unobservable inputs (Level 3) at: March 31, 2020 December 31, 2019 Impact of Valuation Significant Range Weighted Range Weighted Fixed maturity securities AFS (3) U.S. corporate and foreign corporate • Matrix pricing • Offered quotes (4) — - 191 104 5 - 145 110 Increase • Market pricing • Quoted prices (4) 20 - 130 96 25 - 131 100 Increase • Consensus pricing • Offered quotes (4) 50 - 108 99 81 - 109 102 Increase RMBS • Market pricing • Quoted prices (4) — - 126 89 — - 119 95 Increase (5) ABS • Market pricing • Quoted prices (4) 3 - 109 91 3 - 119 98 Increase (5) • Consensus pricing • Offered quotes (4) 100 - 100 100 99 - 104 100 Increase (5) Derivatives Interest rate • Present value techniques • Swap yield (6) 66 - 147 117 190 - 251 Increase (7) • Repurchase rates (8) (18) - — (10) (6) - 6 Decrease (7) Foreign currency exchange rate • Present value techniques • Swap yield (6) (224) - 328 (131) (125) - 328 Increase (7) Credit • Present value techniques • Credit spreads (9) 98 - 104 100 96 - 100 Decrease (7) • Consensus pricing • Offered quotes (10) Equity market • Present value techniques or option pricing models • Volatility (11) 21% - 56% 35% 14% - 23% Increase (7) • Correlation (12) 10% - 30% 13% 10% - 30% Embedded derivatives Direct, assumed and ceded guaranteed minimum benefits • Option pricing techniques • Mortality rates: Ages 0 - 40 0% - 0.18% 0% 0% - 0.18% Decrease (13) Ages 41 - 60 0.03% - 0.80% 0.30% 0.03% - 0.80% Decrease (13) Ages 61 - 115 0.13% - 100% 1.90% 0.13% - 100% Decrease (13) • Lapse rates: Durations 1 - 10 0.25% - 100% 7.90% 0.25% - 100% Decrease (14) Durations 11 - 20 0.50% - 100% 6.40% 0.50% - 100% Decrease (14) Durations 21 - 116 0.50% - 100% 6.40% 0.50% - 100% Decrease (14) • Utilization rates 0% - 22% 0.90% 0% - 22% Increase (15) • Withdrawal rates 0% - 20% 4.23% 0% - 20% (16) • Long-term equity volatilities 7.39% - 30% 18.30% 6.01% - 30% Increase (17) • Nonperformance risk spread 0.08% - 1.69% 0.49% 0.03% - 1.30% Decrease (18) __________________ (1) The weighted average for fixed maturity securities AFS and derivatives is determined based on the estimated fair value of the securities. The weighted average for embedded derivatives is determined based on a combination of account values and experience data. (2) The impact of a decrease in input would have resulted in the opposite impact on estimated fair value. For embedded derivatives, changes to direct and assumed guaranteed minimum benefits are based on liability positions; changes to ceded guaranteed minimum benefits are based on asset positions. (3) Significant increases (decreases) in expected default rates in isolation would have resulted in substantially lower (higher) valuations. (4) Range and weighted average are presented in accordance with the market convention for fixed maturity securities AFS of dollars per hundred dollars of par. (5) Changes in the assumptions used for the probability of default would have been accompanied by a directionally similar change in the assumption used for the loss severity and a directionally opposite change in the assumptions used for prepayment rates. (6) Ranges represent the rates across different yield curves and are presented in basis points. The swap yield curves are utilized among different types of derivatives to project cash flows, as well as to discount future cash flows to present value. Since this valuation methodology uses a range of inputs across a yield curve to value the derivative, presenting a range is more representative of the unobservable input used in the valuation. (7) Changes in estimated fair value are based on long U.S. dollar net asset positions and will be inversely impacted for short U.S. dollar net asset positions. (8) Ranges represent different repurchase rates utilized as components within the valuation methodology and are presented in basis points. (9) Represents the risk quoted in basis points of a credit default event on the underlying instrument. Credit derivatives with significant unobservable inputs are primarily comprised of written credit default swaps. (10) At both March 31, 2020 and December 31, 2019 , independent non-binding broker quotations were used in the determination of less than 1% of the total net derivative estimated fair value. (11) Ranges represent the underlying equity volatility quoted in percentage points. Since this valuation methodology uses a range of inputs across multiple volatility surfaces to value the derivative, presenting a range is more representative of the unobservable input used in the valuation. (12) Ranges represent the different correlation factors utilized as components within the valuation methodology. Presenting a range of correlation factors is more representative of the unobservable input used in the valuation. Increases (decreases) in correlation in isolation will increase (decrease) the significance of the change in valuations. (13) Mortality rates vary by age and by demographic characteristics such as gender. Mortality rate assumptions are based on company experience. A mortality improvement assumption is also applied. For any given contract, mortality rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. (14) Base lapse rates are adjusted at the contract level based on a comparison of the actuarially calculated guaranteed values and the current policyholder account value, as well as other factors, such as the applicability of any surrender charges. A dynamic lapse function reduces the base lapse rate when the guaranteed amount is greater than the account value as in the money contracts are less likely to lapse. Lapse rates are also generally assumed to be lower in periods when a surrender charge applies. For any given contract, lapse rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. (15) The utilization rate assumption estimates the percentage of contractholders with a GMIB or lifetime withdrawal benefit who will elect to utilize the benefit upon becoming eligible. The rates may vary by the type of guarantee, the amount by which the guaranteed amount is greater than the account value, the contract’s withdrawal history and by the age of the policyholder. For any given contract, utilization rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. (16) The withdrawal rate represents the percentage of account balance that any given policyholder will elect to withdraw from the contract each year. The withdrawal rate assumption varies by age and duration of the contract, and also by other factors such as benefit type. For any given contract, withdrawal rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. For GMWBs, any increase (decrease) in withdrawal rates results in an increase (decrease) in the estimated fair value of the guarantees. For GMABs and GMIBs, any increase (decrease) in withdrawal rates results in a decrease (increase) in the estimated fair value. (17) Long-term equity volatilities represent equity volatility beyond the period for which observable equity volatilities are available. For any given contract, long-term equity volatility rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. (18) Nonperformance risk spread varies by duration and by currency. For any given contract, multiple nonperformance risk spreads will apply, depending on the duration of the cash flow being discounted for purposes of valuing the embedded derivative. |
Fair Value, Measured on Recurring Basis, Unobservable Input Reconciliation | The following tables summarize the change of all assets (liabilities) measured at estimated fair value on a recurring basis using significant unobservable inputs (Level 3): Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Fixed Maturity Securities AFS Corporate (6) Foreign Structured Products Municipals Equity Securities Unit-linked and FVO Securities (In millions) Three Months Ended March 31, 2020 Balance, beginning of period $ 14,229 $ 117 $ 4,458 $ 7 $ 430 $ 625 Total realized/unrealized gains (losses) included in net income (loss) (1), (2) (60 ) (2 ) 10 — (28 ) (63 ) Total realized/unrealized gains (losses) included in AOCI (1,200 ) (7 ) (311 ) — — — Purchases (3) 2,392 32 372 — 2 140 Sales (3) (565 ) (3 ) (186 ) — (32 ) (103 ) Issuances (3) — — — — — — Settlements (3) — — — — — — Transfers into Level 3 (4) 5,503 28 45 — — 14 Transfers out of Level 3 (4) (490 ) (61 ) (374 ) (7 ) — (96 ) Balance, end of period $ 19,809 $ 104 $ 4,014 $ — $ 372 $ 517 Three Months Ended March 31, 2019 Balance, beginning of period $ 10,467 $ 138 $ 4,266 $ — $ 419 $ 405 Total realized/unrealized gains (losses) included in net income (loss) (1), (2) 9 — 14 — 30 14 Total realized/unrealized gains (losses) included in AOCI 394 — 22 — — — Purchases (3) 463 20 264 — 6 41 Sales (3) (270 ) (1 ) (139 ) — (21 ) (3 ) Issuances (3) — — — — — — Settlements (3) — — — — — — Transfers into Level 3 (4) 284 — 1 — — 4 Transfers out of Level 3 (4) (385 ) — (359 ) — — (4 ) Balance, end of period $ 10,962 $ 157 $ 4,069 $ — $ 434 $ 457 Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at March 31, 2020 (5) $ (59 ) $ (2 ) $ 11 $ — $ (12 ) $ (65 ) Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at March 31, 2019 (5) $ (1 ) $ — $ 13 $ — $ 23 $ 15 Changes in unrealized gains (losses) included in AOCI for the instruments still held at March 31, 2020 (5) $ (1,201 ) $ (7 ) (312 ) $ — $ — $ — Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Short-term Investments Residential Mortgage Other Investments Net Derivatives (7) Net Embedded Derivatives (8) Separate (In millions) Three Months Ended March 31, 2020 Balance, beginning of period $ 32 $ 188 $ 455 $ (146 ) $ (742 ) $ 980 Total realized/unrealized gains (losses) included in net income (loss) (1), (2) — 2 4 71 (1,422 ) (8 ) Total realized/unrealized gains (losses) included in AOCI (1 ) — — 1,200 (4 ) — Purchases (3) 354 — 16 (10 ) — 144 Sales (3) (8 ) (5 ) — — — (62 ) Issuances (3) — — — — — (1 ) Settlements (3) — (5 ) — (76 ) (64 ) — Transfers into Level 3 (4) 5 — — — — 10 Transfers out of Level 3 (4) (14 ) — — — — (17 ) Balance, end of period $ 368 $ 180 $ 475 $ 1,039 $ (2,232 ) $ 1,046 Three Months Ended March 31, 2019 Balance, beginning of period $ 33 $ 299 $ 39 $ (225 ) $ (739 ) $ 937 Total realized/unrealized gains (losses) included in net income (loss) (1), (2) — 2 — 70 193 3 Total realized/unrealized gains (losses) included in AOCI 1 — — 97 7 — Purchases (3) 110 — 129 — — 80 Sales (3) (6 ) (16 ) — — — (122 ) Issuances (3) — — — — — 2 Settlements (3) — (9 ) — (11 ) (66 ) (1 ) Transfers into Level 3 (4) — — — — — — Transfers out of Level 3 (4) — — — — — (2 ) Balance, end of period $ 138 $ 276 $ 168 $ (69 ) $ (605 ) $ 897 Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at March 31, 2020 (5) $ — $ — $ — $ 40 $ (1,422 ) $ — Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at March 31, 2019 (5) $ — $ — $ — $ 69 $ 192 $ — Changes in unrealized gains (losses) included in AOCI for the instruments still held at March 31, 2020 (5) $ (1 ) $ — $ — $ 1,122 $ (4 ) $ — __________________ (1) Amortization of premium/accretion of discount is included within net investment income. Impairments charged to net income (loss) on securities are included in net investment gains (losses), while changes in estimated fair value of residential mortgage loans — FVO are included in net investment income. Lapses associated with net embedded derivatives are included in net derivative gains (losses). Substantially all realized/unrealized gains (losses) included in net income (loss) for net derivatives and net embedded derivatives are reported in net derivative gains (losses). (2) Interest and dividend accruals, as well as cash interest coupons and dividends received, are excluded from the rollforward. (3) Items purchased/issued and then sold/settled in the same period are excluded from the rollforward. Fees attributed to embedded derivatives are included in settlements. (4) Items transferred into and then out of Level 3 in the same period are excluded from the rollforward. (5) Changes in unrealized gains (losses) included in net income (loss) and included in AOCI relate to assets and liabilities still held at the end of the respective periods. Substantially all changes in unrealized gains (losses) included in net income (loss) for net derivatives and net embedded derivatives are reported in net derivative gains (losses). (6) Comprised of U.S. and foreign corporate securities. (7) Freestanding derivative assets and liabilities are presented net for purposes of the rollforward. (8) Embedded derivative assets and liabilities are presented net for purposes of the rollforward. (9) Investment performance related to separate account assets is fully offset by corresponding amounts credited to contractholders within separate account liabilities. Therefore, such changes in estimated fair value are not recorded in net income (loss). For the purpose of this disclosure, these changes are presented within net investment gains (losses). Separate account assets and liabilities are presented net for the purposes of the rollforward. |
Fair Value Option | The following table presents information for residential mortgage loans, which are accounted for under the FVO and were initially measured at fair value. March 31, 2020 December 31, 2019 (In millions) Unpaid principal balance $ 196 $ 209 Difference between estimated fair value and unpaid principal balance (16 ) (21 ) Carrying value at estimated fair value $ 180 $ 188 Loans in nonaccrual status $ 43 $ 47 Loans more than 90 days past due $ 18 $ 18 Loans in nonaccrual status or more than 90 days past due, or both — difference between aggregate estimated fair value and unpaid principal balance $ (16 ) $ (19 ) |
Fair Value of Financial Instruments Carried at Other Than Fair Value | The carrying values and estimated fair values for such financial instruments, and their corresponding placement in the fair value hierarchy, are summarized as follows at: March 31, 2020 Fair Value Hierarchy Carrying Level 1 Level 2 Level 3 Total (In millions) Assets Mortgage loans $ 81,164 $ — $ — $ 83,138 $ 83,138 Policy loans $ 9,638 $ — $ 330 $ 11,935 $ 12,265 Other invested assets $ 1,188 $ — $ 849 $ 340 $ 1,189 Premiums, reinsurance and other receivables $ 3,648 $ — $ 1,121 $ 2,713 $ 3,834 Other assets $ 314 $ — $ 110 $ 186 $ 296 Liabilities Policyholder account balances $ 118,419 $ — $ — $ 126,635 $ 126,635 Long-term debt $ 14,385 $ — $ 15,966 $ — $ 15,966 Collateral financing arrangement $ 981 $ — $ — $ 790 $ 790 Junior subordinated debt securities $ 3,151 $ — $ 3,749 $ — $ 3,749 Other liabilities $ 4,167 $ — $ 2,660 $ 2,717 $ 5,377 Separate account liabilities $ 100,410 $ — $ 100,410 $ — $ 100,410 December 31, 2019 Fair Value Hierarchy Carrying Level 1 Level 2 Level 3 Total (In millions) Assets Mortgage loans $ 80,341 $ — $ — $ 83,079 $ 83,079 Policy loans $ 9,680 $ — $ 326 $ 11,329 $ 11,655 Other invested assets $ 1,183 $ — $ 809 $ 374 $ 1,183 Premiums, reinsurance and other receivables $ 3,678 $ — $ 1,178 $ 2,706 $ 3,884 Other assets $ 318 $ — $ 131 $ 188 $ 319 Liabilities Policyholder account balances $ 119,262 $ — $ — $ 122,998 $ 122,998 Long-term debt $ 13,336 $ — $ 15,830 $ — $ 15,830 Collateral financing arrangement $ 993 $ — $ — $ 810 $ 810 Junior subordinated debt securities $ 3,150 $ — $ 4,405 $ — $ 4,405 Other liabilities $ 2,045 $ — $ 540 $ 2,279 $ 2,819 Separate account liabilities $ 110,837 $ — $ 110,837 $ — $ 110,837 |
Equity (Tables)
Equity (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Schedule of Stock by Class | Preferred stock authorized, issued and outstanding was as follows: March 31, 2020 December 31, 2019 Series Shares Shares Shares Shares Shares Shares Floating Rate Non-Cumulative Preferred Stock, Series A 27,600,000 24,000,000 24,000,000 27,600,000 24,000,000 24,000,000 5.25% Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series C 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 5.875% Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series D 500,000 500,000 500,000 500,000 500,000 500,000 5.625% Non-Cumulative Preferred Stock, Series E 32,200 32,200 32,200 32,200 32,200 32,200 4.75% Non-Cumulative Preferred Stock, Series F 40,000 40,000 40,000 — — — Series A Junior Participating Preferred Stock 10,000,000 — — 10,000,000 — — Not designated 160,327,800 — — 160,367,800 — — Total 200,000,000 26,072,200 26,072,200 200,000,000 26,032,200 26,032,200 |
Class of Stock [Line Items] | |
Class of Treasury Stock [Table Text Block] | MetLife, Inc. announced that its Board of Directors authorized common stock repurchases as follows: Authorization Remaining at Announcement Date Authorization Amount March 31, 2020 (In millions) July 31, 2019 $ 2,000 $ 485 November 1, 2018 $ 2,000 $ — |
Components of Accumulated Other Comprehensive Income (Loss) | Information regarding changes in the balances of each component of AOCI attributable to MetLife, Inc. was as follows: Three Months Unrealized Investment Gains (Losses), Net of Related Offsets (1) Unrealized Gains (Losses) on Derivatives Foreign Currency Translation Adjustments Defined Benefit Plans Adjustment Total (In millions) Balance, beginning of period $ 18,283 $ 1,698 $ (4,927 ) $ (2,002 ) $ 13,052 OCI before reclassifications (3,619 ) 3,687 (674 ) — (606 ) Deferred income tax benefit (expense) 927 (810 ) (26 ) — 91 AOCI before reclassifications, net of income tax 15,591 4,575 (5,627 ) (2,002 ) 12,537 Amounts reclassified from AOCI (187 ) 438 — 21 272 Deferred income tax benefit (expense) 48 (96 ) — (4 ) (52 ) Amounts reclassified from AOCI, net of income tax (139 ) 342 — 17 220 Balance, end of period $ 15,452 $ 4,917 $ (5,627 ) $ (1,985 ) $ 12,757 Three Months Unrealized Investment Gains (Losses), Net of Related Offsets (1) Unrealized Gains (Losses) on Derivatives Foreign Currency Translation Adjustments Defined Benefit Plans Adjustment Total (In millions) Balance, beginning of period $ 7,042 $ 1,613 $ (4,905 ) $ (2,028 ) $ 1,722 OCI before reclassifications 6,721 (11 ) (36 ) 1 6,675 Deferred income tax benefit (expense) (1,516 ) 6 (6 ) — (1,516 ) AOCI before reclassifications, net of income tax 12,247 1,608 (4,947 ) (2,027 ) 6,881 Amounts reclassified from AOCI (2 ) (24 ) — 29 3 Deferred income tax benefit (expense) — 12 — (6 ) 6 Amounts reclassified from AOCI, net of income tax (2 ) (12 ) — 23 9 Cumulative effects of changes in accounting principles 4 22 — — 26 Deferred income tax benefit (expense), cumulative effects of changes in accounting principles (1 ) (4 ) — — (5 ) Cumulative effects of changes in accounting principles, net of income tax (2) 3 18 — — 21 Balance, end of period $ 12,248 $ 1,614 $ (4,947 ) $ (2,004 ) $ 6,911 __________________ (1) See Note 6 for information on offsets to investments related to future policy benefits, DAC, VOBA and DSI, and the policyholder dividend obligation. (2) See Note 1 of the Notes to the Consolidated Financial Statements included in the 2019 Annual Report for further information on adoption of new accounting pronouncements. |
Reclassification out of Accumulated Other Comprehensive Income (Loss) | Information regarding amounts reclassified out of each component of AOCI was as follows: Three Months 2020 2019 AOCI Components Amounts Reclassified from AOCI Consolidated Statements of (In millions) Net unrealized investment gains (losses): Net unrealized investment gains (losses) $ 204 $ (24 ) Net investment gains (losses) Net unrealized investment gains (losses) (11 ) 4 Net investment income Net unrealized investment gains (losses) (6 ) 22 Net derivative gains (losses) Net unrealized investment gains (losses), before income tax 187 2 Income tax (expense) benefit (48 ) — Net unrealized investment gains (losses), net of income tax 139 2 Unrealized gains (losses) on derivatives - cash flow hedges: Interest rate derivatives 6 5 Net investment income Interest rate derivatives 6 (6 ) Net investment gains (losses) Interest rate derivatives 1 1 Other expenses Foreign currency exchange rate derivatives — (2 ) Net investment income Foreign currency exchange rate derivatives (451 ) 25 Net investment gains (losses) Credit derivatives — 1 Net investment gains (losses) Gains (losses) on cash flow hedges, before income tax (438 ) 24 Income tax (expense) benefit 96 (12 ) Gains (losses) on cash flow hedges, net of income tax (342 ) 12 Defined benefit plans adjustment: (1) Amortization of net actuarial gains (losses) (26 ) (36 ) Amortization of prior service (costs) credit 5 7 Amortization of defined benefit plan items, before income tax (21 ) (29 ) Income tax (expense) benefit 4 6 Amortization of defined benefit plan items, net of income tax (17 ) (23 ) Total reclassifications, net of income tax $ (220 ) $ (9 ) __________________ (1) These AOCI components are included in the computation of net periodic benefit costs. See Note 12 . |
Preferred Stock | |
Class of Stock [Line Items] | |
Dividends Declared [Table Text Block] | The declaration, record and payment dates, as well as per share and aggregate dividend amounts, for MetLife, Inc.’s preferred stock were as follows for the three months ended March 31, 2020 and 2019 : Declaration Date Record Date Payment Date Preferred Stock Dividend Series A Series C Series D Series E Series F Per Share Aggregate Per Aggregate Per Aggregate Per Aggregate Per Aggregate (In millions, except per share data) March 5, 2020 March 1, 2020 March 16, 2020 $ 0.253 $ 6 $ — $ — $ — $ — $ — $ — $ — $ — February 18, 2020 February 29, 2020 March 16, 2020 — — — — 29.375 15 351.563 11 — — Total $ 0.253 $ 6 $ — $ — $ 29.375 $ 15 $ 351.563 $ 11 $ — $ — March 5, 2019 February 28, 2019 March 15, 2019 $ 0.250 $ 6 $ — $ — $ — $ — $ — $ — $ — $ — February 15, 2019 February 28, 2019 March 15, 2019 — — — — 29.375 15 351.563 11 — — Total $ 0.250 $ 6 $ — $ — $ 29.375 $ 15 $ 351.563 $ 11 $ — $ — |
Common Stock | |
Class of Stock [Line Items] | |
Dividends Declared [Table Text Block] | The declaration, record and payment dates, as well as per share and aggregate dividend amounts, for MetLife, Inc.’s common stock were as follows for the three months ended March 31, 2020 and 2019 : Declaration Date Record Date Payment Date Common Stock Dividend Per Share Aggregate (In millions, except per share data) January 7, 2020 February 4, 2020 March 13, 2020 $ 0.440 404 January 7, 2019 February 5, 2019 March 13, 2019 $ 0.420 405 |
Other Revenues and Other Expe_2
Other Revenues and Other Expenses (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Other Income and Expenses [Abstract] | |
Disaggregation of Revenue | Information on other revenues, which primarily includes fees related to service contracts from customers, was as follows: Three Months 2020 2019 (In millions) Prepaid legal plans $ 101 $ 86 Fee-based investment management 79 77 Recordkeeping and administrative services (1) 49 50 Administrative services-only contracts 56 53 Other revenue from service contracts from customers 60 71 Total revenues from service contracts from customers 345 337 Other 94 157 Total other revenues $ 439 $ 494 __________________ (1) Related to products and businesses no longer actively marketed by the Company. |
Other Expenses | Information on other expenses was as follows: Three Months 2020 2019 (In millions) Employee-related costs (1) $ 869 $ 922 Third party staffing costs 348 369 General and administrative expenses 190 223 Pension, postretirement and postemployment benefit costs 39 56 Premium taxes, other taxes, and licenses & fees 193 170 Commissions and other variable expenses 1,408 1,449 Capitalization of DAC (774 ) (812 ) Amortization of DAC and VOBA 788 624 Amortization of negative VOBA (10 ) (10 ) Interest expense on debt 222 234 Total other expenses $ 3,273 $ 3,225 __________________ (1) Includes $40 million and ($76) million for the three months ended March 31, 2020 and 2019 , respectively, for the net change in cash surrender value of investments in certain life insurance policies, net of premiums paid. |
Restructuring charges | Three Months 2020 2019 Severance (In millions) Balance, beginning of period $ 57 $ 23 Restructuring charges — 7 Cash payments (35 ) (13 ) Balance, end of period $ 22 $ 17 Total severance charges incurred since inception of initiative $ 244 $ 143 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Retirement Benefits [Abstract] | |
Net periodic benefit costs | The components of net periodic benefit costs, reported in other expenses, were as follows: Three Months 2020 2019 Pension Benefits Other Postretirement Benefits Pension Benefits Other Postretirement Benefits (In millions) Service costs $ 62 $ 1 $ 58 $ 1 Interest costs 89 10 104 13 Expected return on plan assets (132 ) (15 ) (122 ) (16 ) Amortization of net actuarial (gains) losses 45 (19 ) 48 (12 ) Amortization of prior service costs (credit) (4 ) (1 ) (4 ) (3 ) Net periodic benefit costs (credit) $ 60 $ (24 ) $ 84 $ (17 ) |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | The following table presents the weighted average shares, basic earnings per common share and diluted earnings per common share: Three Months 2020 2019 (In millions, except per share data) Weighted Average Shares: Weighted average common stock outstanding - basic 914.1 956.5 Incremental common shares from assumed exercise or issuance of stock-based awards 5.9 6.8 Weighted average common stock outstanding - diluted 920.0 963.3 Net Income (Loss): Net income (loss) $ 4,401 $ 1,385 Less: Net income (loss) attributable to noncontrolling interests 3 4 Less: Preferred stock dividends 32 32 Net income (loss) available to MetLife, Inc.’s common shareholders $ 4,366 $ 1,349 Basic $ 4.78 $ 1.41 Diluted $ 4.75 $ 1.40 |
Business, Basis of Presentati_3
Business, Basis of Presentation and Summary of Significant Accounting Policies (New Accounting Pronouncements) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Retained Earnings (Accumulated Deficit) | $ 36,919 | $ 33,078 | |
Accounting Standards Update 2016-13 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Retained Earnings (Accumulated Deficit) | $ 121 |
Business, Basis of Presentati_4
Business, Basis of Presentation and Summary of Significant Accounting Policies (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2020Segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of segments | 5 |
Segment Information (Earnings)
Segment Information (Earnings) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenues | ||
Premiums | $ 9,466 | $ 9,405 |
Universal life and investment-type product policy fees | 1,431 | 1,365 |
Net investment income | 3,061 | 4,908 |
Other revenues | 439 | 494 |
Net investment gains (losses) | (288) | 15 |
Net derivative gains (losses) | 4,201 | 115 |
Total revenues | 18,310 | 16,302 |
Expenses | ||
Policyholder benefits and claims and policyholder dividends | 9,314 | 9,372 |
Interest credited to policyholder account balances | 80 | 1,961 |
Capitalization of DAC | (774) | (812) |
Amortization of DAC and VOBA | 788 | 624 |
Amortization of negative VOBA | (10) | (10) |
Interest expense on debt | 222 | 234 |
Other expenses | 3,047 | 3,189 |
Total expenses | 12,667 | 14,558 |
Provision for income tax expense (benefit) | 1,242 | 359 |
Income (loss) from continuing operations, net of income tax | 4,401 | 1,385 |
Operating Segments | ||
Revenues | ||
Premiums | 9,434 | 9,405 |
Universal life and investment-type product policy fees | 1,385 | 1,338 |
Net investment income | 4,321 | 4,281 |
Other revenues | 397 | 424 |
Net investment gains (losses) | 0 | 0 |
Net derivative gains (losses) | 0 | 0 |
Total revenues | 15,537 | 15,448 |
Expenses | ||
Policyholder benefits and claims and policyholder dividends | 9,363 | 9,241 |
Interest credited to policyholder account balances | 1,218 | 1,248 |
Capitalization of DAC | (771) | (812) |
Amortization of DAC and VOBA | 739 | 655 |
Amortization of negative VOBA | (10) | (10) |
Interest expense on debt | 222 | 234 |
Other expenses | 2,981 | 3,101 |
Total expenses | 13,742 | 13,657 |
Provision for income tax expense (benefit) | 314 | 335 |
Adjusted earnings | 1,481 | 1,456 |
Operating Segments | U.S. | ||
Revenues | ||
Premiums | 5,674 | 5,567 |
Universal life and investment-type product policy fees | 275 | 270 |
Net investment income | 1,766 | 1,719 |
Other revenues | 240 | 221 |
Net investment gains (losses) | 0 | 0 |
Net derivative gains (losses) | 0 | 0 |
Total revenues | 7,955 | 7,777 |
Expenses | ||
Policyholder benefits and claims and policyholder dividends | 5,435 | 5,373 |
Interest credited to policyholder account balances | 458 | 501 |
Capitalization of DAC | (112) | (114) |
Amortization of DAC and VOBA | 119 | 114 |
Amortization of negative VOBA | 0 | 0 |
Interest expense on debt | 2 | 2 |
Other expenses | 1,066 | 993 |
Total expenses | 6,968 | 6,869 |
Provision for income tax expense (benefit) | 207 | 184 |
Adjusted earnings | 780 | 724 |
Operating Segments | Asia | ||
Revenues | ||
Premiums | 1,636 | 1,699 |
Universal life and investment-type product policy fees | 430 | 406 |
Net investment income | 937 | 880 |
Other revenues | 14 | 16 |
Net investment gains (losses) | 0 | 0 |
Net derivative gains (losses) | 0 | 0 |
Total revenues | 3,017 | 3,001 |
Expenses | ||
Policyholder benefits and claims and policyholder dividends | 1,321 | 1,319 |
Interest credited to policyholder account balances | 445 | 403 |
Capitalization of DAC | (421) | (479) |
Amortization of DAC and VOBA | 315 | 307 |
Amortization of negative VOBA | (8) | (9) |
Interest expense on debt | 0 | 0 |
Other expenses | 874 | 955 |
Total expenses | 2,526 | 2,496 |
Provision for income tax expense (benefit) | 141 | 149 |
Adjusted earnings | 350 | 356 |
Operating Segments | Latin America | ||
Revenues | ||
Premiums | 640 | 646 |
Universal life and investment-type product policy fees | 270 | 284 |
Net investment income | 218 | 296 |
Other revenues | 11 | 12 |
Net investment gains (losses) | 0 | 0 |
Net derivative gains (losses) | 0 | 0 |
Total revenues | 1,139 | 1,238 |
Expenses | ||
Policyholder benefits and claims and policyholder dividends | 610 | 597 |
Interest credited to policyholder account balances | 70 | 94 |
Capitalization of DAC | (100) | (94) |
Amortization of DAC and VOBA | 74 | 78 |
Amortization of negative VOBA | 0 | 0 |
Interest expense on debt | 1 | 1 |
Other expenses | 345 | 366 |
Total expenses | 1,000 | 1,042 |
Provision for income tax expense (benefit) | 44 | 62 |
Adjusted earnings | 95 | 134 |
Operating Segments | EMEA | ||
Revenues | ||
Premiums | 568 | 542 |
Universal life and investment-type product policy fees | 116 | 103 |
Net investment income | 69 | 74 |
Other revenues | 13 | 14 |
Net investment gains (losses) | 0 | 0 |
Net derivative gains (losses) | 0 | 0 |
Total revenues | 766 | 733 |
Expenses | ||
Policyholder benefits and claims and policyholder dividends | 310 | 284 |
Interest credited to policyholder account balances | 27 | 24 |
Capitalization of DAC | (130) | (117) |
Amortization of DAC and VOBA | 130 | 92 |
Amortization of negative VOBA | (2) | (1) |
Interest expense on debt | 0 | 0 |
Other expenses | 332 | 338 |
Total expenses | 667 | 620 |
Provision for income tax expense (benefit) | 21 | 27 |
Adjusted earnings | 78 | 86 |
Operating Segments | MetLife Holdings | ||
Revenues | ||
Premiums | 904 | 927 |
Universal life and investment-type product policy fees | 294 | 274 |
Net investment income | 1,315 | 1,287 |
Other revenues | 35 | 67 |
Net investment gains (losses) | 0 | 0 |
Net derivative gains (losses) | 0 | 0 |
Total revenues | 2,548 | 2,555 |
Expenses | ||
Policyholder benefits and claims and policyholder dividends | 1,661 | 1,648 |
Interest credited to policyholder account balances | 218 | 226 |
Capitalization of DAC | (5) | (6) |
Amortization of DAC and VOBA | 100 | 63 |
Amortization of negative VOBA | 0 | 0 |
Interest expense on debt | 2 | 2 |
Other expenses | 228 | 227 |
Total expenses | 2,204 | 2,160 |
Provision for income tax expense (benefit) | 67 | 78 |
Adjusted earnings | 277 | 317 |
Operating Segments | Corporate & Other | ||
Revenues | ||
Premiums | 12 | 24 |
Universal life and investment-type product policy fees | 0 | 1 |
Net investment income | 16 | 25 |
Other revenues | 84 | 94 |
Net investment gains (losses) | 0 | 0 |
Net derivative gains (losses) | 0 | 0 |
Total revenues | 112 | 144 |
Expenses | ||
Policyholder benefits and claims and policyholder dividends | 26 | 20 |
Interest credited to policyholder account balances | 0 | 0 |
Capitalization of DAC | (3) | (2) |
Amortization of DAC and VOBA | 1 | 1 |
Amortization of negative VOBA | 0 | 0 |
Interest expense on debt | 217 | 229 |
Other expenses | 136 | 222 |
Total expenses | 377 | 470 |
Provision for income tax expense (benefit) | (166) | (165) |
Adjusted earnings | (99) | (161) |
Significant Reconciling Items | ||
Revenues | ||
Premiums | 32 | 0 |
Universal life and investment-type product policy fees | 46 | 27 |
Net investment income | (1,260) | 627 |
Other revenues | 42 | 70 |
Net investment gains (losses) | (288) | 15 |
Net derivative gains (losses) | 4,201 | 115 |
Total revenues | 2,773 | 854 |
Expenses | ||
Policyholder benefits and claims and policyholder dividends | (49) | 131 |
Interest credited to policyholder account balances | (1,138) | 713 |
Capitalization of DAC | (3) | 0 |
Amortization of DAC and VOBA | 49 | (31) |
Amortization of negative VOBA | 0 | 0 |
Interest expense on debt | 0 | 0 |
Other expenses | 66 | 88 |
Total expenses | (1,075) | 901 |
Provision for income tax expense (benefit) | $ 928 | $ 24 |
Segment Information (Total Asse
Segment Information (Total Assets) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 737,741 | $ 740,463 |
U.S. | ||
Segment Reporting Information [Line Items] | ||
Total assets | 273,341 | 266,174 |
Asia | ||
Segment Reporting Information [Line Items] | ||
Total assets | 160,442 | 161,018 |
Latin America | ||
Segment Reporting Information [Line Items] | ||
Total assets | 61,526 | 75,069 |
EMEA | ||
Segment Reporting Information [Line Items] | ||
Total assets | 24,365 | 27,281 |
MetLife Holdings | ||
Segment Reporting Information [Line Items] | ||
Total assets | 172,347 | 175,199 |
Corporate & Other | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ 45,720 | $ 35,722 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2020Segment | |
Segment Reporting [Abstract] | |
Number of segments | 5 |
Insurance (Guarantees Related t
Insurance (Guarantees Related to Annuity Contracts) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Variable Annuity Guarantees: | Guaranteed Death Benefits | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Total account value | $ 55,583 | $ 64,506 |
Separate account value (1) | 34,167 | 41,305 |
Net amount at risk | $ 4,009 | $ 1,572 |
Average attained age of contractholders | 67 years | 67 years |
Variable Annuity Guarantees: | Guaranteed Annuitization Benefits | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Total account value | $ 20,475 | $ 24,036 |
Separate account value (1) | 18,774 | 22,291 |
Net amount at risk | $ 1,131 | $ 584 |
Average attained age of contractholders | 66 years | 65 years |
Other Annuity Guarantees: | Guaranteed Annuitization Benefits | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Total account value | $ 4,885 | $ 5,671 |
Net amount at risk | $ 388 | $ 408 |
Average attained age of contractholders | 51 years | 51 years |
Insurance (Guarantees Related_2
Insurance (Guarantees Related to Universal and Variable Life Contracts) (Details) - Universal and Variable Life Contracts - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Secondary Guarantees | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Total account value (1), (3) | $ 10,994 | $ 11,937 |
Net amount at risk (7) | $ 84,436 | $ 86,221 |
Average attained age of policyholders | 54 years | 53 years |
Paid-Up Guarantees | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Total account value (1), (3) | $ 2,903 | $ 2,940 |
Net amount at risk (7) | $ 14,231 | $ 14,500 |
Average attained age of policyholders | 65 years | 65 years |
Insurance (Rollforward of Unpai
Insurance (Rollforward of Unpaid Claims) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||
Balance, beginning of period | $ 19,216 | $ 17,788 |
Less: Reinsurance recoverables | 2,377 | 2,332 |
Net balance, beginning of period | 16,839 | 15,456 |
Incurred related to: | ||
Current period | 6,455 | 6,338 |
Prior periods (1) | 113 | 210 |
Total incurred | 6,568 | 6,548 |
Paid related to: | ||
Current period | (3,523) | (3,430) |
Prior periods | (3,160) | (2,814) |
Total paid | (6,683) | (6,244) |
Net balance, end of period | 16,724 | 15,760 |
Add: Reinsurance recoverables | 2,461 | 2,354 |
Balance, end of period (included in future policy benefits and other policy-related balances) | $ 19,185 | $ 18,114 |
Closed Block (Liabilities and A
Closed Block (Liabilities and Assets) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Closed Block Liabilities | |||
Future policy benefits | $ 39,214 | $ 39,379 | |
Other policy-related balances | 340 | 423 | |
Policyholder dividends payable | 431 | 432 | |
Policyholder dividend obligation | 1,677 | 2,020 | $ 428 |
Deferred income tax liability | 82 | 79 | |
Other liabilities | 169 | 81 | |
Total closed block liabilities | 41,913 | 42,414 | |
Assets Designated to the Closed Block | |||
Fixed maturity securities available-for-sale, at estimated fair value | 25,332 | 25,977 | |
Equity securities, at estimated fair value | 44 | 49 | |
Contractholder-directed equity securities and fair value option securities, at estimated fair value | 46 | 53 | |
Mortgage loans | 6,995 | 7,052 | |
Policy loans | 4,478 | 4,489 | |
Real estate and real estate joint ventures | 556 | 544 | |
Other invested assets | 844 | 314 | |
Total investments | 38,295 | 38,478 | |
Cash and cash equivalents | 148 | 448 | |
Accrued investment income | 427 | 419 | |
Premiums, reinsurance and other receivables | 67 | 75 | |
Current income tax recoverable | 90 | 91 | |
Total assets designated to the closed block | 39,027 | 39,511 | |
Excess of closed block liabilities over assets designated to the closed block | 2,886 | 2,903 | |
AOCI: | |||
Unrealized investment gains (losses), net of income tax | 2,008 | 2,453 | |
Unrealized gains (losses) on derivatives, net of income tax | 314 | 97 | |
Allocated to policyholder dividend obligation, net of income tax | (1,325) | (1,596) | |
Total amounts included in AOCI | 997 | 954 | |
Maximum future earnings to be recognized from closed block assets and liabilities | $ 3,883 | $ 3,857 |
Closed Block (Policyholder Divi
Closed Block (Policyholder Dividend Obligation) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Closed block policyholder dividend obligation | ||
Balance, beginning of period | $ 2,020 | $ 428 |
Change in unrealized investment and derivative gains (losses) | (343) | 1,592 |
Balance, end of period | $ 1,677 | $ 2,020 |
Closed Block (Revenues and Expe
Closed Block (Revenues and Expenses) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenues | ||
Premiums | $ 367 | $ 367 |
Net investment income | 407 | 428 |
Net investment gains (losses) | (19) | (1) |
Net derivative gains (losses) | 26 | 3 |
Total revenues | 781 | 797 |
Expenses | ||
Policyholder benefits and claims | 550 | 539 |
Policyholder dividends | 219 | 228 |
Other expenses | 27 | 29 |
Total expenses | 796 | 796 |
Revenues, net of expenses before provision for income tax expense (benefit) | (15) | 1 |
Provision for income tax expense (benefit) | (3) | 0 |
Revenues, net of expenses and provision for income tax expense (benefit) | $ (12) | $ 1 |
Investments (Fixed Maturity Sec
Investments (Fixed Maturity Securities Available-For-Sale by Sector) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 302,624 | $ 297,655 |
Amortized cost of fixed maturity securities valuation allowances | (187) | 0 |
Gross Unrealized OTTI Loss | 0 | (33) |
Debt Securities, Available-for-sale | 326,685 | 327,820 |
Fixed Maturity Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross Unrealized Gain | 32,005 | 31,812 |
Gross Unrealized Temporary Loss | 7,757 | 1,680 |
Gross Unrealized OTTI Loss | (33) | |
U.S. corporate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 80,287 | 79,115 |
Amortized cost of fixed maturity securities valuation allowances | (51) | 0 |
Gross Unrealized Gain | 7,151 | 8,943 |
Gross Unrealized Temporary Loss | 2,316 | 305 |
Gross Unrealized OTTI Loss | 0 | |
Debt Securities, Available-for-sale | 85,071 | 87,753 |
Foreign government | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 57,737 | 58,840 |
Amortized cost of fixed maturity securities valuation allowances | (136) | 0 |
Gross Unrealized Gain | 7,816 | 8,710 |
Gross Unrealized Temporary Loss | 573 | 321 |
Gross Unrealized OTTI Loss | 0 | |
Debt Securities, Available-for-sale | 64,844 | 67,229 |
Foreign corporate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 58,679 | 59,342 |
Amortized cost of fixed maturity securities valuation allowances | 0 | |
Gross Unrealized Gain | 3,281 | 5,540 |
Gross Unrealized Temporary Loss | 2,765 | 717 |
Gross Unrealized OTTI Loss | 0 | |
Debt Securities, Available-for-sale | 59,195 | 64,165 |
U.S. government and agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 38,181 | 37,586 |
Amortized cost of fixed maturity securities valuation allowances | 0 | |
Gross Unrealized Gain | 9,787 | 4,604 |
Gross Unrealized Temporary Loss | 9 | 106 |
Gross Unrealized OTTI Loss | 0 | |
Debt Securities, Available-for-sale | 47,959 | 42,084 |
RMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 29,242 | 27,051 |
Amortized cost of fixed maturity securities valuation allowances | 0 | |
Gross Unrealized Gain | 1,636 | 1,535 |
Gross Unrealized Temporary Loss | 409 | 72 |
Gross Unrealized OTTI Loss | (33) | |
Debt Securities, Available-for-sale | 30,469 | 28,547 |
ABS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 15,870 | 14,547 |
Amortized cost of fixed maturity securities valuation allowances | 0 | |
Gross Unrealized Gain | 48 | 83 |
Gross Unrealized Temporary Loss | 1,080 | 88 |
Gross Unrealized OTTI Loss | 0 | |
Debt Securities, Available-for-sale | 14,838 | 14,542 |
Municipals | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 11,877 | 11,081 |
Amortized cost of fixed maturity securities valuation allowances | 0 | |
Gross Unrealized Gain | 2,054 | 2,001 |
Gross Unrealized Temporary Loss | 60 | 29 |
Gross Unrealized OTTI Loss | 0 | |
Debt Securities, Available-for-sale | 13,871 | 13,053 |
CMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 10,751 | 10,093 |
Amortized cost of fixed maturity securities valuation allowances | 0 | |
Gross Unrealized Gain | 232 | 396 |
Gross Unrealized Temporary Loss | 545 | 42 |
Gross Unrealized OTTI Loss | 0 | |
Debt Securities, Available-for-sale | $ 10,438 | $ 10,447 |
Investments (Maturities of Fixe
Investments (Maturities of Fixed Maturity Securities) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Available-for-sale Securities, Debt Maturities [Abstract] | ||
Amortized Cost, Due in one year or less | $ 16,862 | |
Amortized Cost, Due after one year through five years | 47,867 | |
Amortized Cost, Due after five years through ten years | 57,679 | |
Amortized Cost, Due after ten years | 124,166 | |
Amortized Cost, Structured Securities | 55,863 | |
Amortized Cost, Subtotal | 302,437 | |
Estimated Fair Value, Due in one year or less | 17,061 | |
Estimated Fair Value, Due after one year through five years | 48,490 | |
Estimated Fair Value, Due after five years through ten years | 60,624 | |
Estimated Fair Value, Due after ten years | 144,765 | |
Estimated Fair Value, Structured Securities | 55,745 | |
Estimated Fair Value of Fixed Maturity Securities AFS | $ 326,685 | $ 327,820 |
Investments (Continuous Gross U
Investments (Continuous Gross Unrealized Losses for Fixed Maturity Securities Available-For-Sale) (Details) $ in Millions | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Debt Securities, Available-for-sale [Line Items] | ||
Total number of securities in an unrealized loss position less than 12 months | 6,667 | 2,153 |
Total number of securities in an unrealized loss position equal or greater than 12 months | 947 | 1,411 |
Fixed Maturity Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months Estimated Fair Value | $ 72,420 | $ 24,806 |
Less than 12 months Gross Unrealized Loss | 6,572 | 578 |
Equal to or Greater than 12 Months Estimated Fair Value | 7,749 | 15,700 |
Equal to or Greater than 12 Months Gross Unrealized Loss | 1,135 | 1,069 |
U.S. corporate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months Estimated Fair Value | 22,055 | 3,817 |
Less than 12 months Gross Unrealized Loss | 2,136 | 107 |
Equal to or Greater than 12 Months Estimated Fair Value | 655 | 2,226 |
Equal to or Greater than 12 Months Gross Unrealized Loss | 174 | 198 |
Foreign government | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months Estimated Fair Value | 5,813 | 3,295 |
Less than 12 months Gross Unrealized Loss | 335 | 149 |
Equal to or Greater than 12 Months Estimated Fair Value | 1,347 | 1,490 |
Equal to or Greater than 12 Months Gross Unrealized Loss | 194 | 172 |
Foreign corporate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months Estimated Fair Value | 21,922 | 3,188 |
Less than 12 months Gross Unrealized Loss | 2,401 | 133 |
Equal to or Greater than 12 Months Estimated Fair Value | 2,103 | 5,873 |
Equal to or Greater than 12 Months Gross Unrealized Loss | 364 | 584 |
U.S. government and agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months Estimated Fair Value | 1,103 | 5,391 |
Less than 12 months Gross Unrealized Loss | 8 | 97 |
Equal to or Greater than 12 Months Estimated Fair Value | 37 | 196 |
Equal to or Greater than 12 Months Gross Unrealized Loss | 0 | 9 |
RMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months Estimated Fair Value | 5,617 | 2,341 |
Less than 12 months Gross Unrealized Loss | 390 | 25 |
Equal to or Greater than 12 Months Estimated Fair Value | 227 | 584 |
Equal to or Greater than 12 Months Gross Unrealized Loss | 20 | 14 |
ABS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months Estimated Fair Value | 9,866 | 3,692 |
Less than 12 months Gross Unrealized Loss | 757 | 22 |
Equal to or Greater than 12 Months Estimated Fair Value | 2,995 | 4,843 |
Equal to or Greater than 12 Months Gross Unrealized Loss | 323 | 66 |
Municipals | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months Estimated Fair Value | 1,351 | 1,156 |
Less than 12 months Gross Unrealized Loss | 60 | 29 |
Equal to or Greater than 12 Months Estimated Fair Value | 1 | 1 |
Equal to or Greater than 12 Months Gross Unrealized Loss | 0 | 0 |
CMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months Estimated Fair Value | 4,693 | 1,926 |
Less than 12 months Gross Unrealized Loss | 485 | 16 |
Equal to or Greater than 12 Months Estimated Fair Value | 384 | 487 |
Equal to or Greater than 12 Months Gross Unrealized Loss | 60 | 26 |
Investment Grade | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months Estimated Fair Value | 63,072 | 22,838 |
Less than 12 months Gross Unrealized Loss | 5,080 | 437 |
Equal to or Greater than 12 Months Estimated Fair Value | 6,970 | 13,813 |
Equal to or Greater than 12 Months Gross Unrealized Loss | 919 | 821 |
Below Investment Grade | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months Estimated Fair Value | 9,348 | 1,968 |
Less than 12 months Gross Unrealized Loss | 1,492 | 141 |
Equal to or Greater than 12 Months Estimated Fair Value | 779 | 1,887 |
Equal to or Greater than 12 Months Gross Unrealized Loss | $ 216 | $ 248 |
Investments Investments (ACL fo
Investments Investments (ACL for Fixed Maturity Securities AFS By Sector) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items] | ||
Amortized cost of fixed maturity securities valuation allowances | $ (187) | $ 0 |
Debt Securities, Available-for-sale, Allowance for Credit Loss, Not Previously Recorded | (187) | |
U.S. corporate | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items] | ||
Amortized cost of fixed maturity securities valuation allowances | (51) | 0 |
Debt Securities, Available-for-sale, Allowance for Credit Loss, Not Previously Recorded | (51) | |
Foreign government | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items] | ||
Amortized cost of fixed maturity securities valuation allowances | (136) | $ 0 |
Debt Securities, Available-for-sale, Allowance for Credit Loss, Not Previously Recorded | $ (136) |
Investments (Equity Securities)
Investments (Equity Securities) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Equity securities | $ 1,050 | $ 1,342 |
Percentage of Equity Securities | 100.00% | 100.00% |
Equity Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Equity securities | $ 1,050 | $ 1,342 |
Common Stock | ||
Debt Securities, Available-for-sale [Line Items] | ||
Equity securities | $ 682 | $ 944 |
Percentage of Equity Securities | 65.00% | 70.30% |
Non-redeemable Preferred Stock | ||
Debt Securities, Available-for-sale [Line Items] | ||
Equity securities | $ 368 | $ 398 |
Percentage of Equity Securities | 35.00% | 29.70% |
Investments (Mortgage Loans by
Investments (Mortgage Loans by Portfolio Segment) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Mortgage Loans, Gross | $ 81,628 | $ 80,635 |
Allowance for Credit Loss | 464 | 353 |
Subtotal mortgage loans, net | 81,164 | 80,282 |
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 81,344 | 80,529 |
Total mortgage loans held-for-investment, net | 81,344 | 80,470 |
Mortgage loans held-for-sale | $ 0 | $ 59 |
Percentage Of mortgage total recorded investment To Mortgage Loans On Real Estate Commercial And Consumer Net | 100.40% | 100.10% |
Percentage of Allowance for Credit Losses for Financing Receivables | (0.60%) | (0.40%) |
Percentage Of Mortgage Loans Held For Investment Net To Mortgage Loans On Real Estate Commercial And Consumer Net | 99.80% | 99.70% |
Percentage Of Loans And Leases Receivable Consumer Other To Mortgage Loans On Real Estate Commercial And Consumer Net | 0.20% | 0.20% |
Percentage of total mortgage loans held-for-investments | 100.00% | 99.90% |
Percentage of mortgage loans held-for-sale | 0.00% | 0.10% |
Percentage Of Mortgage Loans On Real Estate To Mortgage Loans On Real Estate Commercial And Consumer Net | 100.00% | 100.00% |
Residential mortgage loans - FVO | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Mortgage Loans on Real Estate, Commercial and Consumer, Net | $ 180 | $ 188 |
Commercial Mortgage Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Mortgage Loans, Gross | $ 50,077 | $ 49,624 |
Percentage Of Mortgage Loans, Gross | 61.60% | 61.60% |
Residential Mortgage Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Mortgage Loans, Gross | $ 14,763 | $ 14,316 |
Percentage Of Mortgage Loans, Gross | 18.20% | 17.80% |
Agricultural Mortgage Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Mortgage Loans, Gross | $ 16,788 | $ 16,695 |
Percentage Of Mortgage Loans, Gross | 20.60% | 20.70% |
Investments (Allowance for Cred
Investments (Allowance for Credit Loss Rollforward by Portfolio Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Balance, beginning of period | $ 353 | $ 342 |
Adoption of new credit loss guidance | 78 | 0 |
Provision (release) | 36 | 10 |
Charge-offs, net of recoveries | (3) | (2) |
Balance, end of period | 464 | 350 |
Commercial Mortgage Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Balance, beginning of period | 246 | 238 |
Adoption of new credit loss guidance | (118) | 0 |
Provision (release) | 15 | 7 |
Charge-offs, net of recoveries | 0 | 0 |
Balance, end of period | 143 | 245 |
Residential Mortgage Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Balance, beginning of period | 55 | 58 |
Adoption of new credit loss guidance | 161 | 0 |
Provision (release) | 24 | 2 |
Charge-offs, net of recoveries | (3) | (2) |
Balance, end of period | 237 | 58 |
Agricultural Mortgage Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Balance, beginning of period | 52 | 46 |
Adoption of new credit loss guidance | 35 | 0 |
Provision (release) | (3) | 1 |
Charge-offs, net of recoveries | 0 | 0 |
Balance, end of period | $ 84 | $ 47 |
Investments (Credit Quality of
Investments (Credit Quality of Commercial Mortgage Loans) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Mortgage Loans, Gross | $ 81,628 | $ 80,635 |
Commercial Mortgage Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Originated in Current Fiscal Year | 1,722 | |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 9,073 | |
Financing Receivable, Originated Two Years before Latest Fiscal Year | 8,758 | |
Financing Receivable, Originated Three Years before Latest Fiscal Year | 6,987 | |
Financing Receivable, Originated Four Years before Latest Fiscal Year | 6,504 | |
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 14,147 | |
Financing Receivable, Revolving | 2,886 | |
Mortgage Loans, Gross | $ 50,077 | $ 49,624 |
Loans Receivable Commercial Mortgage Percentage | 100.00% | |
Commercial Mortgage Loans | Less than 65% | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Originated in Current Fiscal Year | $ 1,276 | |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 6,618 | |
Financing Receivable, Originated Two Years before Latest Fiscal Year | 7,108 | |
Financing Receivable, Originated Three Years before Latest Fiscal Year | 5,291 | |
Financing Receivable, Originated Four Years before Latest Fiscal Year | 5,431 | |
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 12,384 | |
Financing Receivable, Revolving | 2,886 | |
Mortgage Loans, Gross | $ 40,994 | |
Loans Receivable Commercial Mortgage Percentage | 81.80% | |
Commercial Mortgage Loans | 65% to 75% | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Originated in Current Fiscal Year | $ 446 | |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 2,455 | |
Financing Receivable, Originated Two Years before Latest Fiscal Year | 1,631 | |
Financing Receivable, Originated Three Years before Latest Fiscal Year | 959 | |
Financing Receivable, Originated Four Years before Latest Fiscal Year | 884 | |
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 1,218 | |
Financing Receivable, Revolving | 0 | |
Mortgage Loans, Gross | $ 7,593 | |
Loans Receivable Commercial Mortgage Percentage | 15.20% | |
Commercial Mortgage Loans | 76% to 80% | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Originated in Current Fiscal Year | $ 0 | |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 0 | |
Financing Receivable, Originated Two Years before Latest Fiscal Year | 19 | |
Financing Receivable, Originated Three Years before Latest Fiscal Year | 336 | |
Financing Receivable, Originated Four Years before Latest Fiscal Year | 131 | |
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 369 | |
Financing Receivable, Revolving | 0 | |
Mortgage Loans, Gross | $ 855 | |
Loans Receivable Commercial Mortgage Percentage | 1.70% | |
Commercial Mortgage Loans | Greater than 80% | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Originated in Current Fiscal Year | $ 0 | |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 0 | |
Financing Receivable, Originated Two Years before Latest Fiscal Year | 0 | |
Financing Receivable, Originated Three Years before Latest Fiscal Year | 401 | |
Financing Receivable, Originated Four Years before Latest Fiscal Year | 58 | |
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 176 | |
Financing Receivable, Revolving | 0 | |
Mortgage Loans, Gross | $ 635 | |
Loans Receivable Commercial Mortgage Percentage | 1.30% | |
Commercial Mortgage Loans | Greater than 1.20x | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Originated in Current Fiscal Year | $ 1,619 | |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 8,668 | |
Financing Receivable, Originated Two Years before Latest Fiscal Year | 8,357 | |
Financing Receivable, Originated Three Years before Latest Fiscal Year | 6,535 | |
Financing Receivable, Originated Four Years before Latest Fiscal Year | 6,144 | |
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 13,235 | |
Financing Receivable, Revolving | 2,886 | |
Mortgage Loans, Gross | $ 47,444 | |
Loans Receivable Commercial Mortgage Percentage | 94.80% | |
Commercial Mortgage Loans | 1.00x - 1.20x | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Originated in Current Fiscal Year | $ 0 | |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 0 | |
Financing Receivable, Originated Two Years before Latest Fiscal Year | 95 | |
Financing Receivable, Originated Three Years before Latest Fiscal Year | 80 | |
Financing Receivable, Originated Four Years before Latest Fiscal Year | 321 | |
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 817 | |
Financing Receivable, Revolving | 0 | |
Mortgage Loans, Gross | $ 1,313 | |
Loans Receivable Commercial Mortgage Percentage | 2.60% | |
Commercial Mortgage Loans | Less than 1.00x | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Originated in Current Fiscal Year | $ 103 | |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 405 | |
Financing Receivable, Originated Two Years before Latest Fiscal Year | 306 | |
Financing Receivable, Originated Three Years before Latest Fiscal Year | 372 | |
Financing Receivable, Originated Four Years before Latest Fiscal Year | 39 | |
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 95 | |
Financing Receivable, Revolving | 0 | |
Mortgage Loans, Gross | $ 1,320 | |
Loans Receivable Commercial Mortgage Percentage | 2.60% |
Investments (Credit Quality o_2
Investments (Credit Quality of Agricultural and Residential Mortgage Loans) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Mortgage Loans, Gross | $ 81,628 | $ 80,635 |
Mortgage Loans in Process of Foreclosure, Amount | 119 | 118 |
Agricultural Mortgage Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Originated in Current Fiscal Year | 561 | |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 2,611 | |
Financing Receivable, Originated Two Years before Latest Fiscal Year | 3,255 | |
Financing Receivable, Originated Three Years before Latest Fiscal Year | 1,213 | |
Financing Receivable, Originated Four Years before Latest Fiscal Year | 2,925 | |
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 5,357 | |
Financing Receivable, Revolving | 866 | |
Mortgage Loans, Gross | $ 16,788 | 16,695 |
Loans Receivable Agricultural Mortgage Percentage | 100.00% | |
Agricultural Mortgage Loans | Less than 65% | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Originated in Current Fiscal Year | $ 522 | |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 2,419 | |
Financing Receivable, Originated Two Years before Latest Fiscal Year | 3,131 | |
Financing Receivable, Originated Three Years before Latest Fiscal Year | 1,118 | |
Financing Receivable, Originated Four Years before Latest Fiscal Year | 2,898 | |
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 5,068 | |
Financing Receivable, Revolving | 853 | |
Mortgage Loans, Gross | $ 16,009 | |
Loans Receivable Agricultural Mortgage Percentage | 95.40% | |
Agricultural Mortgage Loans | 65% to 75% | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Originated in Current Fiscal Year | $ 39 | |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 192 | |
Financing Receivable, Originated Two Years before Latest Fiscal Year | 113 | |
Financing Receivable, Originated Three Years before Latest Fiscal Year | 95 | |
Financing Receivable, Originated Four Years before Latest Fiscal Year | 27 | |
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 241 | |
Financing Receivable, Revolving | 11 | |
Mortgage Loans, Gross | $ 718 | |
Loans Receivable Agricultural Mortgage Percentage | 4.30% | |
Agricultural Mortgage Loans | 76% to 80% | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Originated in Current Fiscal Year | $ 0 | |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 0 | |
Financing Receivable, Originated Two Years before Latest Fiscal Year | 11 | |
Financing Receivable, Originated Three Years before Latest Fiscal Year | 0 | |
Financing Receivable, Originated Four Years before Latest Fiscal Year | 0 | |
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 6 | |
Financing Receivable, Revolving | 2 | |
Mortgage Loans, Gross | $ 19 | |
Loans Receivable Agricultural Mortgage Percentage | 0.10% | |
Agricultural Mortgage Loans | Greater than 80% | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Originated in Current Fiscal Year | $ 0 | |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 0 | |
Financing Receivable, Originated Two Years before Latest Fiscal Year | 0 | |
Financing Receivable, Originated Three Years before Latest Fiscal Year | 0 | |
Financing Receivable, Originated Four Years before Latest Fiscal Year | 0 | |
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 42 | |
Financing Receivable, Revolving | 0 | |
Mortgage Loans, Gross | $ 42 | |
Loans Receivable Agricultural Mortgage Percentage | 0.20% | |
Residential Mortgage Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Originated in Current Fiscal Year | $ 249 | |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 3,093 | |
Financing Receivable, Originated Two Years before Latest Fiscal Year | 1,488 | |
Financing Receivable, Originated Three Years before Latest Fiscal Year | 515 | |
Financing Receivable, Originated Four Years before Latest Fiscal Year | 275 | |
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 9,143 | |
Financing Receivable, Revolving | 0 | |
Mortgage Loans, Gross | $ 14,763 | $ 14,316 |
Loans Receivable Residential Mortgage Percentage | 100.00% | |
Residential Mortgage Loans | Performing | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Originated in Current Fiscal Year | $ 249 | |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 3,084 | |
Financing Receivable, Originated Two Years before Latest Fiscal Year | 1,479 | |
Financing Receivable, Originated Three Years before Latest Fiscal Year | 510 | |
Financing Receivable, Originated Four Years before Latest Fiscal Year | 268 | |
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 8,766 | |
Financing Receivable, Revolving | 0 | |
Mortgage Loans, Gross | $ 14,356 | |
Loans Receivable Residential Mortgage Percentage | 97.20% | |
Residential Mortgage Loans | Nonperforming | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Originated in Current Fiscal Year | $ 0 | |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 9 | |
Financing Receivable, Originated Two Years before Latest Fiscal Year | 9 | |
Financing Receivable, Originated Three Years before Latest Fiscal Year | 5 | |
Financing Receivable, Originated Four Years before Latest Fiscal Year | 7 | |
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 377 | |
Financing Receivable, Revolving | 0 | |
Mortgage Loans, Gross | $ 407 | |
Loans Receivable Residential Mortgage Percentage | 2.80% |
Investments (Past Due and Inter
Investments (Past Due and Interest Accrual Status of Mortgage Loans) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Past Due | $ 684 | $ 591 | |
Greater than 90 Days Past Due and Still Accruing | 137 | 51 | |
Financing Receivable, Nonaccrual | 739 | 731 | |
Commercial Mortgage Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Past Due | 6 | 10 | |
Greater than 90 Days Past Due and Still Accruing | 0 | 9 | |
Financing Receivable, Nonaccrual | 182 | 176 | $ 176 |
Residential Mortgage Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Past Due | 407 | 452 | |
Greater than 90 Days Past Due and Still Accruing | 16 | 35 | |
Financing Receivable, Nonaccrual | 391 | 418 | 436 |
Agricultural Mortgage Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Past Due | 271 | 129 | |
Greater than 90 Days Past Due and Still Accruing | 121 | 7 | |
Financing Receivable, Nonaccrual | $ 166 | $ 137 | $ 105 |
Investments (Real Estate and Re
Investments (Real Estate and Real Estate Joint Ventures) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Real Estate [Line Items] | |||
Leased real estate investments, Carrying Value | $ 5,129 | $ 4,893 | |
Other real estate investments, Carrying Value | 419 | 420 | |
Real estate joint ventures, Carrying Value | 5,702 | 5,428 | |
Real estate and real estate joint ventures (includes $144 and $127, respectively, under the fair value option) | 11,250 | $ 10,741 | |
Real Estate and Real Estate Joint Ventures | |||
Real Estate [Line Items] | |||
Gross Investment Income, Operating | 165 | $ 130 | |
Leased real estate investments | |||
Real Estate [Line Items] | |||
Operating Lease, Lease Income | 106 | 92 | |
Other real estate investments | |||
Real Estate [Line Items] | |||
Operating Lease, Lease Income | 35 | 34 | |
Real estate joint ventures | |||
Real Estate [Line Items] | |||
Income (Loss) from Equity Method Investments | $ 24 | $ 4 |
Investments (Net Unrealized Inv
Investments (Net Unrealized Investment Gains Losses) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Components of net unrealized investment gains (losses) included in accumulated other comprehensive loss | ||
Fixed maturity securities AFS | $ 24,197 | $ 30,050 |
Fixed maturity securities AFS with noncredit OTTI losses included in AOCI | 0 | 33 |
Total fixed maturity securities AFS | 24,197 | 30,083 |
Derivatives | 6,336 | 2,209 |
Other | 524 | 310 |
Subtotal | 31,057 | 32,602 |
Future policy benefits | 546 | (1,019) |
DAC, VOBA and DSI | (2,759) | (2,716) |
Policyholder dividend obligation | (1,677) | (2,020) |
Subtotal | (3,890) | (5,755) |
Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI | 0 | (4) |
Deferred income tax benefit (expense) | (6,781) | (6,846) |
Net unrealized investment gains (losses) | 20,386 | 19,997 |
Net unrealized investment gains (losses) attributable to noncontrolling interests | (17) | (16) |
Net unrealized investment gains (losses) attributable to MetLife, Inc. | $ 20,369 | $ 19,981 |
Investments (Changes in Net Unr
Investments (Changes in Net Unrealized Investment Gains Losses) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Changes In Net Unrealized Investment Gains Losses Included In Accumulated Other Comprehensive Loss [Abstract] | |
Balance, beginning of period | $ 19,981 |
Fixed maturity securities AFS on which noncredit OTTI losses have been recognized | (33) |
Unrealized investment gains (losses) during the period | (1,512) |
Unrealized investment gains (losses) relating to: | |
Future policy benefits | 1,565 |
DAC, VOBA and DSI | (43) |
Policyholder dividend obligation | 343 |
Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI | 4 |
Deferred income tax benefit (expense) | 65 |
Net unrealized investment gains (losses) | 20,370 |
Net unrealized investment gains (losses) attributable to noncontrolling interests | (1) |
Balance, end of period | 20,369 |
Change in net unrealized investment gains (losses) | 389 |
Change in net unrealized investment gains (losses) attributable to noncontrolling interests | (1) |
Change in net unrealized investment gains (losses) attributable to MetLife, Inc. | $ 388 |
Investments (Securities Lending
Investments (Securities Lending, Repurchase Agreements and FHLB Agreements) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Securities Financing Transaction [Line Items] | ||
Cash collateral on deposit from counterparties | $ 19,718 | $ 17,369 |
Reinvestment portfolio - estimated fair value | 19,541 | 17,451 |
Security collateral on deposit from counterparties | 21 | 0 |
Estimated fair value | ||
Securities Financing Transaction [Line Items] | ||
Securities loaned | 19,170 | 16,926 |
Repurchase Agreements | ||
Securities Financing Transaction [Line Items] | ||
Cash collateral on deposit from counterparties | 2,700 | 2,310 |
Reinvestment portfolio - estimated fair value | 2,676 | 2,320 |
Repurchase Agreements | Estimated fair value | ||
Securities Financing Transaction [Line Items] | ||
Securities Sold under Agreements to Repurchase | 2,746 | 2,333 |
Federal Home Loan Bank of Boston | ||
Securities Financing Transaction [Line Items] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Amount of Advances | 800 | 800 |
Federal Home Loan Bank of Boston | Estimated fair value | ||
Securities Financing Transaction [Line Items] | ||
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Collateral Pledged | 1,132 | 1,083 |
Fixed Maturity Securities | Federal Home Loan Bank of Boston | ||
Securities Financing Transaction [Line Items] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Amount of Advances | $ 807 | $ 843 |
Investments (Securities Lendi_2
Investments (Securities Lending, Repurchase Agreements and FHLB Agreements Remaining Tenor) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Securities Financing Transaction [Line Items] | ||
Cash collateral on deposit from counterparties | $ 19,718 | $ 17,369 |
U.S. government and agency | ||
Securities Financing Transaction [Line Items] | ||
Cash collateral on deposit from counterparties | 18,606 | 16,267 |
Foreign government | ||
Securities Financing Transaction [Line Items] | ||
Cash collateral on deposit from counterparties | 1,030 | 1,026 |
RMBS | ||
Securities Financing Transaction [Line Items] | ||
Cash collateral on deposit from counterparties | 73 | 76 |
U.S. corporate | ||
Securities Financing Transaction [Line Items] | ||
Cash collateral on deposit from counterparties | 9 | 0 |
Municipals | ||
Securities Financing Transaction [Line Items] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Amount of Advances | 800 | 800 |
Open (1) | ||
Securities Financing Transaction [Line Items] | ||
Cash collateral on deposit from counterparties | 3,974 | 2,928 |
Open (1) | U.S. government and agency | ||
Securities Financing Transaction [Line Items] | ||
Cash collateral on deposit from counterparties | 3,965 | 2,928 |
Open (1) | Foreign government | ||
Securities Financing Transaction [Line Items] | ||
Cash collateral on deposit from counterparties | 0 | 0 |
Open (1) | RMBS | ||
Securities Financing Transaction [Line Items] | ||
Cash collateral on deposit from counterparties | 0 | 0 |
Open (1) | U.S. corporate | ||
Securities Financing Transaction [Line Items] | ||
Cash collateral on deposit from counterparties | 9 | 0 |
Open (1) | Municipals | ||
Securities Financing Transaction [Line Items] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Amount of Advances | 0 | 0 |
1 Month or Less | ||
Securities Financing Transaction [Line Items] | ||
Cash collateral on deposit from counterparties | 8,457 | 7,011 |
1 Month or Less | U.S. government and agency | ||
Securities Financing Transaction [Line Items] | ||
Cash collateral on deposit from counterparties | 8,116 | 6,676 |
1 Month or Less | Foreign government | ||
Securities Financing Transaction [Line Items] | ||
Cash collateral on deposit from counterparties | 268 | 259 |
1 Month or Less | RMBS | ||
Securities Financing Transaction [Line Items] | ||
Cash collateral on deposit from counterparties | 73 | 76 |
1 Month or Less | U.S. corporate | ||
Securities Financing Transaction [Line Items] | ||
Cash collateral on deposit from counterparties | 0 | 0 |
1 Month or Less | Municipals | ||
Securities Financing Transaction [Line Items] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Amount of Advances | 250 | 250 |
Over 1 to 6 Months | ||
Securities Financing Transaction [Line Items] | ||
Cash collateral on deposit from counterparties | 7,287 | 7,430 |
Over 1 to 6 Months | U.S. government and agency | ||
Securities Financing Transaction [Line Items] | ||
Cash collateral on deposit from counterparties | 6,525 | 6,663 |
Over 1 to 6 Months | Foreign government | ||
Securities Financing Transaction [Line Items] | ||
Cash collateral on deposit from counterparties | 762 | 767 |
Over 1 to 6 Months | RMBS | ||
Securities Financing Transaction [Line Items] | ||
Cash collateral on deposit from counterparties | 0 | 0 |
Over 1 to 6 Months | U.S. corporate | ||
Securities Financing Transaction [Line Items] | ||
Cash collateral on deposit from counterparties | 0 | 0 |
Over 1 to 6 Months | Municipals | ||
Securities Financing Transaction [Line Items] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Amount of Advances | 550 | 475 |
Maturity 180 to 360 Days [Member] [Domain] | ||
Securities Financing Transaction [Line Items] | ||
Cash collateral on deposit from counterparties | 0 | 0 |
Maturity 180 to 360 Days [Member] [Domain] | U.S. government and agency | ||
Securities Financing Transaction [Line Items] | ||
Cash collateral on deposit from counterparties | 0 | 0 |
Maturity 180 to 360 Days [Member] [Domain] | Foreign government | ||
Securities Financing Transaction [Line Items] | ||
Cash collateral on deposit from counterparties | 0 | 0 |
Maturity 180 to 360 Days [Member] [Domain] | RMBS | ||
Securities Financing Transaction [Line Items] | ||
Cash collateral on deposit from counterparties | 0 | 0 |
Maturity 180 to 360 Days [Member] [Domain] | U.S. corporate | ||
Securities Financing Transaction [Line Items] | ||
Cash collateral on deposit from counterparties | 0 | 0 |
Maturity 180 to 360 Days [Member] [Domain] | Municipals | ||
Securities Financing Transaction [Line Items] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Amount of Advances | 0 | 75 |
Repurchase Agreements | ||
Securities Financing Transaction [Line Items] | ||
Cash collateral on deposit from counterparties | 2,700 | 2,310 |
Repurchase Agreements | U.S. government and agency | ||
Securities Financing Transaction [Line Items] | ||
Cash collateral on deposit from counterparties | 2,700 | 2,310 |
Repurchase Agreements | Open (1) | U.S. government and agency | ||
Securities Financing Transaction [Line Items] | ||
Cash collateral on deposit from counterparties | 0 | 0 |
Repurchase Agreements | 1 Month or Less | U.S. government and agency | ||
Securities Financing Transaction [Line Items] | ||
Cash collateral on deposit from counterparties | 2,700 | 2,310 |
Repurchase Agreements | Over 1 to 6 Months | U.S. government and agency | ||
Securities Financing Transaction [Line Items] | ||
Cash collateral on deposit from counterparties | 0 | 0 |
Repurchase Agreements | Maturity 180 to 360 Days [Member] [Domain] | U.S. government and agency | ||
Securities Financing Transaction [Line Items] | ||
Cash collateral on deposit from counterparties | $ 0 | $ 0 |
Investments (Invested Assets on
Investments (Invested Assets on Deposit, Held In Trust and Pledged as Collateral) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Investments, Debt and Equity Securities [Abstract] | ||
Invested assets on deposit (regulatory deposits) | $ 1,669 | $ 2,034 |
Invested assets held in trust (collateral financing arrangement and reinsurance agreements) | 3,007 | 2,991 |
Invested assets pledged as collateral (1) | 27,687 | 24,493 |
Total invested assets on deposit, held in trust and pledged as collateral | $ 32,363 | $ 29,518 |
Investments (Consolidated Varia
Investments (Consolidated Variable Interest Entities) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Variable Interest Entity [Line Items] | ||
Assets | $ 737,741 | $ 740,463 |
Liabilities | 667,278 | 674,081 |
Consolidated Entities [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Variable Interest Entity [Line Items] | ||
Assets | 320 | 311 |
Liabilities | 6 | 6 |
Investment Funds [Domain] | Consolidated Entities [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Variable Interest Entity [Line Items] | ||
Assets | 215 | 207 |
Liabilities | 1 | 1 |
Renewable energy partnership | Consolidated Entities [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Variable Interest Entity [Line Items] | ||
Assets | 95 | 94 |
Liabilities | 0 | 0 |
Other | Consolidated Entities [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Variable Interest Entity [Line Items] | ||
Assets | 10 | 10 |
Liabilities | $ 5 | $ 5 |
Investments (Unconsolidated Var
Investments (Unconsolidated Variable Interest Entities) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Variable Interest Entity [Line Items] | ||
Assets | $ 737,741 | $ 740,463 |
Maximum Exposure to Loss | 70,466 | 67,996 |
Tax Credits Guaranteed By Third Parties Amount That Reduces Maximum Exposure To Loss Related To Other Invested Assets | 7 | 6 |
Structured Securities | ||
Variable Interest Entity [Line Items] | ||
Maximum Exposure to Loss | 53,654 | 51,962 |
U.S. corporate and foreign corporate securities | ||
Variable Interest Entity [Line Items] | ||
Maximum Exposure to Loss | 1,780 | 1,764 |
Foreign government | ||
Variable Interest Entity [Line Items] | ||
Maximum Exposure to Loss | 124 | 136 |
Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Assets | 64,633 | 62,481 |
Variable Interest Entity, Not Primary Beneficiary | Structured Securities | ||
Variable Interest Entity [Line Items] | ||
Assets | 53,654 | 51,962 |
Variable Interest Entity, Not Primary Beneficiary | U.S. corporate and foreign corporate securities | ||
Variable Interest Entity [Line Items] | ||
Assets | 1,780 | 1,764 |
Variable Interest Entity, Not Primary Beneficiary | Foreign government | ||
Variable Interest Entity [Line Items] | ||
Assets | 124 | 136 |
Variable Interest Entity, Not Primary Beneficiary | Other limited partnership interests | ||
Variable Interest Entity [Line Items] | ||
Assets | 7,164 | 6,674 |
Variable Interest Entity, Not Primary Beneficiary | Other invested assets | ||
Variable Interest Entity [Line Items] | ||
Assets | 1,458 | 1,495 |
Variable Interest Entity, Not Primary Beneficiary | Other | ||
Variable Interest Entity [Line Items] | ||
Assets | 453 | 450 |
Other limited partnership interests | ||
Variable Interest Entity [Line Items] | ||
Maximum Exposure to Loss | 12,841 | 12,016 |
Other invested assets | ||
Variable Interest Entity [Line Items] | ||
Maximum Exposure to Loss | 1,567 | 1,621 |
Other | ||
Variable Interest Entity [Line Items] | ||
Maximum Exposure to Loss | $ 500 | $ 497 |
Investments (Net Investment Inc
Investments (Net Investment Income) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Net Investment Income [Line Items] | ||
Less: Investment expenses | $ 324 | $ 356 |
Net investment income | 3,061 | 4,908 |
Securities Investment | ||
Net Investment Income [Line Items] | ||
Gross Investment Income, Operating | 4,525 | 4,528 |
Net investment income | 4,201 | 4,172 |
Fixed Maturity Securities | ||
Net Investment Income [Line Items] | ||
Gross Investment Income, Operating | 2,875 | 2,939 |
Equity Securities | ||
Net Investment Income [Line Items] | ||
Gross Investment Income, Operating | 14 | 17 |
FVO Securities | ||
Net Investment Income [Line Items] | ||
Gross Investment Income, Operating | (78) | 55 |
Mortgage loans | ||
Net Investment Income [Line Items] | ||
Gross Investment Income, Operating | 884 | 912 |
Policy loans | ||
Net Investment Income [Line Items] | ||
Gross Investment Income, Operating | 126 | 128 |
Real Estate and Real Estate Joint Ventures | ||
Net Investment Income [Line Items] | ||
Gross Investment Income, Operating | 165 | 130 |
Other limited partnership interests | ||
Net Investment Income [Line Items] | ||
Gross Investment Income, Operating | 320 | 123 |
Cash, cash equivalents and short-term investments | ||
Net Investment Income [Line Items] | ||
Gross Investment Income, Operating | 92 | 128 |
Operating joint ventures | ||
Net Investment Income [Line Items] | ||
Gross Investment Income, Operating | 25 | 18 |
Other | ||
Net Investment Income [Line Items] | ||
Gross Investment Income, Operating | 102 | 78 |
Unit-linked investments | ||
Net Investment Income [Line Items] | ||
Net investment income | (1,140) | 736 |
Trading Securities, Change in Unrealized Holding Gain (Loss) | $ (1,100) | $ 648 |
Investments (Components of Net
Investments (Components of Net Investment Gains Losses) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Marketable Securities, Gain (Loss) [Abstract] | ||
Fixed maturity securities AFS - net gains (losses) on sales and disposals | $ 219 | $ (14) |
Equity securities - net gains (losses) on sales and disposals | 8 | 43 |
Change In Estimated Fair Value Of Equity Securities | (292) | 64 |
Other net investment gains (losses): | ||
Mortgage loans | (63) | (15) |
Real estate and real estate joint ventures | 1 | 5 |
Other limited partnership interests | 4 | 0 |
Other (3) | 25 | (68) |
Subtotal - investment portfolio gains (losses) | (313) | 5 |
Change In Estimated Fair Value Of Other Limited Partnership Interests And Real Estate Joint Ventures | 1 | (15) |
Non-investment portfolio gains (losses) | 24 | 25 |
Subtotal | 25 | 10 |
Total net investment gains (losses) | (288) | 15 |
Changes In Estimated Fair Value Subsequent To Purchase For Equity Securities | (288) | 97 |
Fixed Maturity Securities | ||
Marketable Securities, Gain (Loss) [Abstract] | ||
Total OTTI losses recognized in earnings | (10) | |
Current expected credit loss recognized in earnings | (215) | |
Net investment gains (losses) | 4 | (24) |
Equity Securities | ||
Marketable Securities, Gain (Loss) [Abstract] | ||
Net investment gains (losses) | $ (284) | 107 |
Industrial Domestic Corporate Debt Securities | ||
Marketable Securities, Gain (Loss) [Abstract] | ||
Total OTTI losses recognized in earnings | (8) | |
RMBS | ||
Marketable Securities, Gain (Loss) [Abstract] | ||
Total OTTI losses recognized in earnings | (2) | |
Tax credit partnerships | ||
Marketable Securities, Gain (Loss) [Abstract] | ||
Total OTTI losses recognized in earnings | (78) | |
Other limited partnership interests | ||
Other net investment gains (losses): | ||
Other (3) | $ 46 |
Investments (Sales or Disposals
Investments (Sales or Disposals and Impairments of Fixed Maturity AFS Securities) (Details) - Fixed Maturity Securities - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Debt Securities, Available-for-sale [Line Items] | ||
Proceeds | $ 12,089 | $ 15,825 |
Gross investment gains | 337 | 205 |
Gross investment losses | (118) | (219) |
Current expected credit loss recognized in earnings | (215) | |
Total OTTI losses recognized in earnings | (10) | |
Net investment gains (losses) | $ 4 | $ (24) |
Investments (Evaluation of Avai
Investments (Evaluation of Available-For-Sale Securities for OTTI and Evaluating Temporarily Impaired AFS Securities - Narrative) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Debt Securities, Available-for-sale [Line Items] | |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | $ 7,700 |
Fixed maturity securities without an allowance for credit loss | |
Debt Securities, Available-for-sale [Line Items] | |
Change in Gross Unrealized Temporary Loss | (6,100) |
Twelve Months Or Greater | |
Debt Securities, Available-for-sale [Line Items] | |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | $ 1,100 |
Percentage of gross unrealized loss | 15.00% |
Twelve Months Or Greater | Investment Grade | |
Debt Securities, Available-for-sale [Line Items] | |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | $ 919 |
Number of Securities | 757 |
Percentage of gross unrealized loss | 81.00% |
Twelve Months Or Greater | Below Investment Grade | |
Debt Securities, Available-for-sale [Line Items] | |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | $ 216 |
Number of Securities | 190 |
Percentage of gross unrealized loss | 19.00% |
Investments (Mortgage Loans - N
Investments (Mortgage Loans - Narrative) (Details) - USD ($) | 3 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Unamortized Loan Commitment and Origination Fees and Unamortized Discounts or Premiums | $ 883,000,000 | $ 867,000,000 | ||
Financing Receivable, Purchase | $ 1,300,000,000 | $ 1,400,000,000 | ||
Percentage of Mortgage Loans Classified as Performing | 99.00% | 99.00% | ||
Financing Receivable, Nonaccrual | $ 739,000,000 | $ 731,000,000 | ||
Commercial Mortgage Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Interest Receivable | 187,000,000 | 188,000,000 | ||
Financing Receivable, Nonaccrual | 182,000,000 | 176,000,000 | $ 176,000,000 | |
Financing Receivable, Nonaccrual, No Allowance | 0 | 0 | ||
Residential Mortgage Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Interest Receivable | 91,000,000 | 94,000,000 | ||
Financing Receivable, Nonaccrual | 391,000,000 | 418,000,000 | 436,000,000 | |
Financing Receivable, Nonaccrual, No Allowance | 0 | 0 | ||
Agricultural Mortgage Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Interest Receivable | 157,000,000 | 186,000,000 | ||
Financing Receivable, Nonaccrual | 166,000,000 | 137,000,000 | $ 105,000,000 | |
Financing Receivable, Nonaccrual, No Allowance | $ 115,000,000 | $ 93,000,000 |
Investments (Real Estate and _2
Investments (Real Estate and Real Estate Joint ventures - Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Real Estate [Line Items] | |||
Real Estate Acquired Through Foreclosure | $ 33 | $ 36 | |
Real Estate Investment Property, Net | 980 | $ 957 | |
Real Estate and Real Estate Joint Ventures | |||
Real Estate [Line Items] | |||
Depreciation | 28 | $ 23 | |
Leased real estate investments | |||
Real Estate [Line Items] | |||
Operating Lease, Lease Income | $ 106 | $ 92 |
Investments Investments (Levera
Investments Investments (Leveraged and Direct Financing Leases - Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Investments, All Other Investments [Abstract] | ||
Leveraged Leases, net of allowance for credit losses | $ 901 | |
Direct Financing Leases, net of allowance for credit losses | 1,100 | |
Leveraged and Direct Financing Leases, Allowance for credit loss | $ 56 | |
Leveraged Leases, Net Investment in Leveraged Leases Disclosure, Investment in Leveraged Leases, Net | $ 1,100 | |
Direct Financing Lease, Net Investment in Lease | $ 1,200 | |
Loans and Leases Receivable, Other Information | The payment periods for leveraged leases generally range from one to 12 years but in certain circumstances can be over 12 years, while the payment periods for direct financing leases generally range from one to 25 years but in certain circumstances can be over 25 years. |
Investments (Cash Equivalents -
Investments (Cash Equivalents - Narrative) (Details) - USD ($) $ in Billions | Mar. 31, 2020 | Dec. 31, 2019 |
Investments, Debt and Equity Securities [Abstract] | ||
Cash equivalents | $ 11 | $ 8.6 |
Investments (Concentrations of
Investments (Concentrations of Credit Risk - Narrative) (Details) - USD ($) $ in Billions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | |||
Securities holdings exposure in single issuer greater than stated percentage of Company's equity | 10.00% | 10.00% | |
Japan | Foreign government | |||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | |||
Government and agency fixed maturity securities | $ 34.1 | $ 33.7 | |
Republic of Korea | Foreign government | |||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | |||
Government and agency fixed maturity securities | $ 7.2 | $ 7.3 |
Investments (Invested Assets _2
Investments (Invested Assets on Deposit, Held in Trust and Pledged as Collateral - Narrative) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Investments, Debt and Equity Securities [Abstract] | ||
Federal Home Loan Bank Stock | $ 849 | $ 809 |
Investments (Net Investment I_2
Investments (Net Investment Income - Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Equity Method Investments | ||
Net Investment Income [Line Items] | ||
Gross Investment Income, Operating | $ 323 | $ 89 |
Investments (Net Investment Gai
Investments (Net Investment Gains Losses - Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | ||
Foreign Currency Transaction Gain (Loss), Realized | $ 51 | $ 14 |
Derivatives (Primary Risks) (De
Derivatives (Primary Risks) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | $ 337,434 | $ 311,853 |
Estimated Fair Value Assets | 18,869 | 10,084 |
Estimated Fair Value Liabilities | 4,849 | 3,737 |
Derivatives Designated as Hedging Instruments: | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 60,549 | 59,290 |
Estimated Fair Value Assets | 8,967 | 4,572 |
Estimated Fair Value Liabilities | 2,424 | 1,761 |
Derivatives Designated as Hedging Instruments: | Fair Value Hedges [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 6,780 | 6,009 |
Estimated Fair Value Assets | 3,476 | 2,684 |
Estimated Fair Value Liabilities | 36 | 59 |
Derivatives Designated as Hedging Instruments: | Fair Value Hedges [Member] | Interest rate swaps | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 3,240 | 2,369 |
Estimated Fair Value Assets | 3,394 | 2,667 |
Estimated Fair Value Liabilities | 10 | 2 |
Derivatives Designated as Hedging Instruments: | Fair Value Hedges [Member] | Foreign currency swaps | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 1,304 | 1,304 |
Estimated Fair Value Assets | 71 | 16 |
Estimated Fair Value Liabilities | 0 | 17 |
Derivatives Designated as Hedging Instruments: | Fair Value Hedges [Member] | Foreign currency forwards | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 2,236 | 2,336 |
Estimated Fair Value Assets | 11 | 1 |
Estimated Fair Value Liabilities | 26 | 40 |
Derivatives Designated as Hedging Instruments: | Cash Flow Hedges [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 49,510 | 48,022 |
Estimated Fair Value Assets | 5,359 | 1,855 |
Estimated Fair Value Liabilities | 2,386 | 1,601 |
Derivatives Designated as Hedging Instruments: | Cash Flow Hedges [Member] | Interest rate swaps | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 5,084 | 3,675 |
Estimated Fair Value Assets | 181 | 145 |
Estimated Fair Value Liabilities | 27 | 27 |
Derivatives Designated as Hedging Instruments: | Cash Flow Hedges [Member] | Interest rate forwards | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 7,239 | 7,364 |
Estimated Fair Value Assets | 1,037 | 83 |
Estimated Fair Value Liabilities | 0 | 144 |
Derivatives Designated as Hedging Instruments: | Cash Flow Hedges [Member] | Foreign currency swaps | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 37,187 | 36,983 |
Estimated Fair Value Assets | 4,141 | 1,627 |
Estimated Fair Value Liabilities | 2,359 | 1,430 |
Derivatives Designated as Hedging Instruments: | Foreign Operations Hedges [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 4,259 | 5,259 |
Estimated Fair Value Assets | 132 | 33 |
Estimated Fair Value Liabilities | 2 | 101 |
Derivatives Designated as Hedging Instruments: | Foreign Operations Hedges [Member] | Foreign currency forwards | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 1,059 | 1,059 |
Estimated Fair Value Assets | 67 | 0 |
Estimated Fair Value Liabilities | 2 | 10 |
Derivatives Designated as Hedging Instruments: | Foreign Operations Hedges [Member] | Currency options | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 3,200 | 4,200 |
Estimated Fair Value Assets | 65 | 33 |
Estimated Fair Value Liabilities | 0 | 91 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 276,885 | 252,563 |
Estimated Fair Value Assets | 9,902 | 5,512 |
Estimated Fair Value Liabilities | 2,425 | 1,976 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Interest rate swaps | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 70,027 | 58,083 |
Estimated Fair Value Assets | 5,127 | 2,867 |
Estimated Fair Value Liabilities | 711 | 185 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Interest rate forwards | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 130 | 129 |
Estimated Fair Value Assets | 1 | 1 |
Estimated Fair Value Liabilities | 2 | 2 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Interest rate floors | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 12,701 | 12,701 |
Estimated Fair Value Assets | 424 | 155 |
Estimated Fair Value Liabilities | 0 | 0 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Interest rate caps | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 55,630 | 42,622 |
Estimated Fair Value Assets | 22 | 18 |
Estimated Fair Value Liabilities | 0 | 5 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Interest rate futures | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 2,514 | 2,423 |
Estimated Fair Value Assets | 1 | 2 |
Estimated Fair Value Liabilities | 5 | 3 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Interest rate options | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 27,600 | 27,344 |
Estimated Fair Value Assets | 1,269 | 764 |
Estimated Fair Value Liabilities | 0 | 1 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Equity total return swaps | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 1,048 | 1,048 |
Estimated Fair Value Assets | 180 | 5 |
Estimated Fair Value Liabilities | 0 | 49 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Synthetic GICs | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 33,588 | 30,341 |
Estimated Fair Value Assets | 0 | 0 |
Estimated Fair Value Liabilities | 0 | 0 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Foreign currency swaps | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 13,807 | 13,699 |
Estimated Fair Value Assets | 1,119 | 644 |
Estimated Fair Value Liabilities | 788 | 461 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Foreign currency forwards | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 13,376 | 13,507 |
Estimated Fair Value Assets | 193 | 50 |
Estimated Fair Value Liabilities | 428 | 393 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Currency futures | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 927 | 880 |
Estimated Fair Value Assets | 5 | 7 |
Estimated Fair Value Liabilities | 0 | 0 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Currency options | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 1,800 | 1,801 |
Estimated Fair Value Assets | 1 | 0 |
Estimated Fair Value Liabilities | 0 | 0 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Credit default swaps — purchased | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 2,919 | 2,944 |
Estimated Fair Value Assets | 43 | 4 |
Estimated Fair Value Liabilities | 68 | 102 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Credit default swaps — written | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 11,353 | 11,520 |
Estimated Fair Value Assets | 30 | 272 |
Estimated Fair Value Liabilities | 90 | 1 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Equity futures | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 2,586 | 4,540 |
Estimated Fair Value Assets | 28 | 6 |
Estimated Fair Value Liabilities | 19 | 8 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Equity index options | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 25,181 | 27,105 |
Estimated Fair Value Assets | 1,237 | 694 |
Estimated Fair Value Liabilities | 303 | 677 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Equity variance swaps | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 937 | 1,115 |
Estimated Fair Value Assets | 34 | 23 |
Estimated Fair Value Liabilities | 11 | 19 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Equity total return swaps | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 761 | 761 |
Estimated Fair Value Assets | 188 | 0 |
Estimated Fair Value Liabilities | $ 0 | $ 70 |
Derivatives (Effects on the Con
Derivatives (Effects on the Consolidated Statement of Operations and Comprehensive Income (Loss)) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | $ 4,201,000,000 | $ 115,000,000 |
Net Investment Income | 3,061,000,000 | 4,908,000,000 |
Gain (Loss) on Investments | (288,000,000) | 15,000,000 |
Policyholder Benefits and Claims Incurred, Net | 9,022,000,000 | 9,072,000,000 |
Policyholder Account Balance, Interest Expense | 80,000,000 | 1,961,000,000 |
Operating Expenses | 3,273,000,000 | 3,225,000,000 |
Nonperformance Risk [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Embedded Derivative, Gain (Loss) on Embedded Derivative, Net | 185,000,000 | (62,000,000) |
Fair Value Hedging [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | 0 | 0 |
Net Investment Income | 1,000,000 | (1,000,000) |
Gain (Loss) on Investments | (18,000,000) | (18,000,000) |
Policyholder Benefits and Claims Incurred, Net | 5,000,000 | (1,000,000) |
Policyholder Account Balance, Interest Expense | 0 | 0 |
Operating Expenses | 0 | 0 |
Cash Flow Hedging [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | 0 | 0 |
Net Investment Income | 6,000,000 | 3,000,000 |
Gain (Loss) on Investments | 8,000,000 | (15,000,000) |
Policyholder Account Balance, Interest Expense | 0 | 0 |
Operating Expenses | 1,000,000 | 1,000,000 |
Other Comprehensive Income (Loss), before Tax | 4,125,000,000 | (13,000,000) |
Net Investment Hedging [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Other Comprehensive Income (Loss), before Tax | 108,000,000 | (6,000,000) |
Foreign Exchange Forward [Member] | Net Investment Hedging [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Other Comprehensive Income (Loss), before Tax | (6,000,000) | |
Designated as Hedging Instrument [Member] | Net Investment Hedging [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Other Comprehensive Income (Loss), before Tax | 110,000,000 | |
Interest Rate Contract | Cash Flow Hedging [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | 0 | 0 |
Net Investment Income | 6,000,000 | 5,000,000 |
Gain (Loss) on Investments | 6,000,000 | (6,000,000) |
Policyholder Benefits and Claims Incurred, Net | 0 | 0 |
Policyholder Account Balance, Interest Expense | 0 | 0 |
Operating Expenses | 1,000,000 | 1,000,000 |
Other Comprehensive Income (Loss), before Tax | (13,000,000) | 0 |
Credit forwards [Member] | Cash Flow Hedging [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | 0 | 0 |
Net Investment Income | 0 | 0 |
Gain (Loss) on Investments | 0 | 1,000,000 |
Policyholder Benefits and Claims Incurred, Net | 0 | 0 |
Policyholder Account Balance, Interest Expense | 0 | 0 |
Operating Expenses | 0 | 0 |
Other Comprehensive Income (Loss), before Tax | 0 | (1,000,000) |
Currency Swap [Member] | Cash Flow Hedging [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | 0 | 0 |
Net Investment Income | 0 | (2,000,000) |
Gain (Loss) on Investments | (451,000,000) | 25,000,000 |
Policyholder Benefits and Claims Incurred, Net | 0 | 0 |
Policyholder Account Balance, Interest Expense | 0 | 0 |
Operating Expenses | 0 | 0 |
Other Comprehensive Income (Loss), before Tax | 451,000,000 | (23,000,000) |
Derivative [Member] | Fair Value Hedging [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | 0 | 0 |
Net Investment Income | 0 | 0 |
Gain (Loss) on Investments | (20,000,000) | (16,000,000) |
Policyholder Benefits and Claims Incurred, Net | 0 | 0 |
Policyholder Account Balance, Interest Expense | 0 | 0 |
Operating Expenses | 0 | 0 |
Derivative [Member] | Interest rate swaps | Fair Value Hedging [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | 0 | 0 |
Net Investment Income | (11,000,000) | (3,000,000) |
Gain (Loss) on Investments | 0 | 0 |
Policyholder Benefits and Claims Incurred, Net | 774,000,000 | 127,000,000 |
Policyholder Account Balance, Interest Expense | 0 | 0 |
Operating Expenses | 0 | 0 |
Derivative [Member] | Currency Swap [Member] | Fair Value Hedging [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | 0 | 0 |
Net Investment Income | 72,000,000 | (30,000,000) |
Gain (Loss) on Investments | 12,000,000 | (14,000,000) |
Policyholder Benefits and Claims Incurred, Net | 0 | 0 |
Policyholder Account Balance, Interest Expense | 0 | 0 |
Operating Expenses | 0 | 0 |
Debt Securities | Interest rate swaps | Fair Value Hedging [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | 0 | 0 |
Net Investment Income | 5,000,000 | 3,000,000 |
Gain (Loss) on Investments | 0 | 0 |
Policyholder Benefits and Claims Incurred, Net | (769,000,000) | (128,000,000) |
Policyholder Account Balance, Interest Expense | 0 | 0 |
Operating Expenses | 0 | 0 |
Debt Securities | Currency Swap [Member] | Fair Value Hedging [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | 0 | 0 |
Net Investment Income | (65,000,000) | 29,000,000 |
Gain (Loss) on Investments | (10,000,000) | 12,000,000 |
Policyholder Benefits and Claims Incurred, Net | 0 | 0 |
Policyholder Account Balance, Interest Expense | 0 | 0 |
Operating Expenses | 0 | 0 |
Foreign Currency Gain (Loss) [Member] | Cash Flow Hedging [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | 0 | 0 |
Net Investment Income | 0 | 0 |
Gain (Loss) on Investments | 453,000,000 | (35,000,000) |
Policyholder Benefits and Claims Incurred, Net | 0 | 0 |
Policyholder Account Balance, Interest Expense | 0 | 0 |
Operating Expenses | 0 | 0 |
Other Comprehensive Income (Loss), before Tax | 0 | 0 |
Non-derivative [Domain] [Member] | Net Investment Hedging [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Other Comprehensive Income (Loss), before Tax | (2,000,000) | 0 |
Accumulated Other Comprehensive Income (Loss) | Credit forwards [Member] | Cash Flow Hedging [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Other Comprehensive Income (Loss), before Tax | 62,000,000 | 0 |
Accumulated Other Comprehensive Income (Loss) | Currency Swap [Member] | Cash Flow Hedging [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Other Comprehensive Income (Loss), before Tax | 1,614,000,000 | (241,000,000) |
Accumulated Other Comprehensive Income (Loss) | Interest rate swaps | Cash Flow Hedging [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Other Comprehensive Income (Loss), before Tax | 2,011,000,000 | 252,000,000 |
Not Designated as Hedging Instrument [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | 5,476,000,000 | (197,000,000) |
Net Investment Income | (4,000,000) | (1,000,000) |
Gain (Loss) on Investments | 0 | 0 |
Policyholder Benefits and Claims Incurred, Net | 248,000,000 | (74,000,000) |
Policyholder Account Balance, Interest Expense | 0 | 0 |
Operating Expenses | 0 | 0 |
Foreign Exchange [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | 135,000,000 | (142,000,000) |
Net Investment Income | 0 | 0 |
Gain (Loss) on Investments | 0 | 0 |
Policyholder Benefits and Claims Incurred, Net | (8,000,000) | 3,000,000 |
Policyholder Account Balance, Interest Expense | 0 | 0 |
Operating Expenses | 0 | 0 |
Credit derivatives — purchased | Not Designated as Hedging Instrument [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | 73,000,000 | (15,000,000) |
Net Investment Income | 0 | 0 |
Gain (Loss) on Investments | 0 | 0 |
Policyholder Benefits and Claims Incurred, Net | 0 | 0 |
Policyholder Account Balance, Interest Expense | 0 | 0 |
Operating Expenses | 0 | 0 |
Credit derivatives — written | Not Designated as Hedging Instrument [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | (311,000,000) | 136,000,000 |
Net Investment Income | 0 | 0 |
Gain (Loss) on Investments | 0 | 0 |
Policyholder Benefits and Claims Incurred, Net | 0 | 0 |
Policyholder Account Balance, Interest Expense | 0 | 0 |
Operating Expenses | 0 | 0 |
Equity Market Risk [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | 1,559,000,000 | (667,000,000) |
Net Investment Income | 0 | 0 |
Gain (Loss) on Investments | 0 | 0 |
Policyholder Benefits and Claims Incurred, Net | 208,000,000 | (96,000,000) |
Policyholder Account Balance, Interest Expense | 0 | 0 |
Operating Expenses | 0 | 0 |
Foreign Currency Gain (Loss) [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | (157,000,000) | 82,000,000 |
Net Investment Income | 0 | 0 |
Gain (Loss) on Investments | 0 | 0 |
Policyholder Benefits and Claims Incurred, Net | 0 | 0 |
Policyholder Account Balance, Interest Expense | 0 | 0 |
Operating Expenses | 0 | 0 |
Interest Rate Risk [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | 4,177,000,000 | 409,000,000 |
Net Investment Income | (4,000,000) | (1,000,000) |
Gain (Loss) on Investments | 0 | 0 |
Policyholder Benefits and Claims Incurred, Net | 48,000,000 | 19,000,000 |
Policyholder Account Balance, Interest Expense | 0 | 0 |
Operating Expenses | 0 | 0 |
Net Derivative Gain (Loss) [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | 147,000,000 | 119,000,000 |
Net Investment Income | 77,000,000 | 56,000,000 |
Gain (Loss) on Investments | 0 | 0 |
Policyholder Benefits and Claims Incurred, Net | 39,000,000 | 32,000,000 |
Policyholder Account Balance, Interest Expense | (44,000,000) | (32,000,000) |
Operating Expenses | 0 | 0 |
Other Comprehensive Income (Loss), before Tax | 0 | 0 |
Embedded Derivative Financial Instruments [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | (1,422,000,000) | 193,000,000 |
Policyholder Benefits and Claims Incurred, Net | 0 | 0 |
Effects of Derivatives on Consolidated Statements of Operations and Comprehensive Income (Loss) [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net Investment Income | 80,000,000 | 57,000,000 |
Gain (Loss) on Investments | (10,000,000) | (33,000,000) |
Policyholder Benefits and Claims Incurred, Net | 292,000,000 | (43,000,000) |
Policyholder Account Balance, Interest Expense | (44,000,000) | (32,000,000) |
Operating Expenses | 1,000,000 | 1,000,000 |
Other Comprehensive Income (Loss), before Tax | $ 4,233,000,000 | $ (19,000,000) |
Derivatives (Fair Value Hedges)
Derivatives (Fair Value Hedges) (Details) - Designated as Hedging Instrument [Member] - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Fixed maturity securities AFS | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Hedged Asset, Discontinued Fair Value Hedge, Cumulative Increase (Decrease) | $ (1) | $ 1 |
Debt Instruments, Carrying Amount | 2,662 | 2,736 |
Hedged Asset, Fair Value Hedge, Cumulative Increase (Decrease) | (1) | (1) |
Mortgages [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Debt Instruments, Carrying Amount | 1,048 | 1,159 |
Hedged Asset, Fair Value Hedge, Cumulative Increase (Decrease) | 16 | 2 |
Future policy benefits [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Debt Instruments, Carrying Amount | (5,705) | (4,475) |
Hedged Asset, Fair Value Hedge, Cumulative Increase (Decrease) | $ (1,677) | $ (908) |
Derivatives (Cash Flow Hedges)
Derivatives (Cash Flow Hedges) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) on Discontinuation of Cash Flow Hedge Due to Forecasted Transaction Probable of Not Occurring, Net | $ (5) | $ 1 | |
Maximum Length of Time Hedged in Cash Flow Hedge | 9 years | 8 years | |
Accumulated Other Comprehensive Income Loss | $ 6,300 | $ 2,200 | |
Derivatives in cash flow hedging relationships | |||
Deferred net gains (losses) expected to be reclassified to earnings | $ (19) |
Derivatives (Hedges of Net Inve
Derivatives (Hedges of Net Investments in Foreign Operations) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Debt Designated as Non-derivative Hedging Instrument | $ 389 | $ 387 |
Derivatives used in Net Investment Hedge, Net of Tax | $ 256 | $ 148 |
Derivatives (Credit Derivatives
Derivatives (Credit Derivatives) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Credit Default Swaps | $ (60) | $ 271 |
Maximum Amount of Future Payments under Credit Default Swaps | $ 11,353 | $ 11,520 |
Weighted Average Years to Maturity | 4 years 4 months 24 days | 4 years 3 months 18 days |
Aaa/Aa/A | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Credit Default Swaps | $ 3 | $ 39 |
Maximum Amount of Future Payments under Credit Default Swaps | $ 2,500 | $ 2,473 |
Weighted Average Years to Maturity | 2 years 1 month 6 days | 2 years 2 months 12 days |
Aaa/Aa/A | Single name credit default swaps (3) | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Credit Default Swaps | $ 3 | $ 4 |
Maximum Amount of Future Payments under Credit Default Swaps | $ 241 | $ 298 |
Weighted Average Years to Maturity | 2 years | 1 year 8 months 12 days |
Aaa/Aa/A | Credit default swaps referencing indices | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Credit Default Swaps | $ 0 | $ 35 |
Maximum Amount of Future Payments under Credit Default Swaps | $ 2,259 | $ 2,175 |
Weighted Average Years to Maturity | 2 years 1 month 6 days | 2 years 2 months 12 days |
Baa [Member] | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Credit Default Swaps | $ (43) | $ 206 |
Maximum Amount of Future Payments under Credit Default Swaps | $ 8,534 | $ 8,755 |
Weighted Average Years to Maturity | 5 years 1 month 6 days | 4 years 10 months 24 days |
Baa [Member] | Single name credit default swaps (3) | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Credit Default Swaps | $ (1) | $ 3 |
Maximum Amount of Future Payments under Credit Default Swaps | $ 289 | $ 216 |
Weighted Average Years to Maturity | 1 year 10 months 24 days | 1 year 6 months |
Baa [Member] | Credit default swaps referencing indices | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Credit Default Swaps | $ (42) | $ 203 |
Maximum Amount of Future Payments under Credit Default Swaps | $ 8,245 | $ 8,539 |
Weighted Average Years to Maturity | 5 years 2 months 12 days | 5 years |
Ba | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Credit Default Swaps | $ (2) | $ 0 |
Maximum Amount of Future Payments under Credit Default Swaps | $ 24 | $ 9 |
Weighted Average Years to Maturity | 2 years 8 months 12 days | 5 years |
Ba | Single name credit default swaps (3) | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Credit Default Swaps | $ (2) | $ 0 |
Maximum Amount of Future Payments under Credit Default Swaps | $ 24 | $ 9 |
Weighted Average Years to Maturity | 2 years 8 months 12 days | 5 years |
Ba | Credit default swaps referencing indices | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Credit Default Swaps | $ 0 | $ 0 |
Maximum Amount of Future Payments under Credit Default Swaps | $ 0 | $ 0 |
Weighted Average Years to Maturity | 0 years | 0 years |
B | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Credit Default Swaps | $ (18) | $ 26 |
Maximum Amount of Future Payments under Credit Default Swaps | $ 295 | $ 283 |
Weighted Average Years to Maturity | 4 years 8 months 12 days | 4 years 9 months 18 days |
B | Single name credit default swaps (3) | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Credit Default Swaps | $ 0 | $ 0 |
Maximum Amount of Future Payments under Credit Default Swaps | $ 24 | $ 10 |
Weighted Average Years to Maturity | 2 years 10 months 24 days | 6 months |
B | Credit default swaps referencing indices | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Credit Default Swaps | $ (18) | $ 26 |
Maximum Amount of Future Payments under Credit Default Swaps | $ 271 | $ 273 |
Weighted Average Years to Maturity | 4 years 9 months 18 days | 5 years |
Derivatives (Estimated Fair Val
Derivatives (Estimated Fair Value of Derivative Assets and Liabilities after Master Netting Agreements and Cash Collateral) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Offsetting Assets [Line Items] | ||
Estimated fair value of derivative assets presented in the consolidated balance sheets | $ 19,031 | $ 10,195 |
Estimated fair value of derivative liabilities presented in the consolidated balance sheets | 4,883 | 3,716 |
Net amount of derivative assets after application of master netting agreements and cash collateral | 700 | 93 |
Net amount of derivative liabilities after application of master netting agreements and cash collateral | 38 | 25 |
Over the Counter [Member] | ||
Offsetting Assets [Line Items] | ||
Gross estimated fair value of derivative assets | 17,682 | 9,574 |
Gross estimated fair value of derivative liabilities | 4,247 | 3,624 |
Gross estimated fair value of derivative assets | (3,329) | (2,664) |
Gross estimated fair value of derivative liabilities | (3,329) | (2,664) |
Cash collateral on derivative assets | (11,556) | (5,317) |
Cash collateral on derivative liabilities | 0 | 0 |
Securities collateral on derivative assets | (2,563) | (1,521) |
Securities collateral on derivative liabilities | (881) | (935) |
Cleared [Member] | ||
Offsetting Assets [Line Items] | ||
Gross estimated fair value of derivative assets | 1,315 | 606 |
Gross estimated fair value of derivative liabilities | 612 | 81 |
Gross estimated fair value of derivative assets | (410) | (38) |
Gross estimated fair value of derivative liabilities | (410) | (38) |
Cash collateral on derivative assets | (471) | (560) |
Cash collateral on derivative liabilities | (38) | (4) |
Securities collateral on derivative assets | 0 | 0 |
Securities collateral on derivative liabilities | (164) | (39) |
Exchange-traded | ||
Offsetting Assets [Line Items] | ||
Gross estimated fair value of derivative assets | 34 | 15 |
Gross estimated fair value of derivative liabilities | 24 | 11 |
Gross estimated fair value of derivative assets | (2) | (2) |
Gross estimated fair value of derivative liabilities | (2) | (2) |
Cash collateral on derivative assets | 0 | 0 |
Cash collateral on derivative liabilities | (13) | (5) |
Securities collateral on derivative assets | 0 | 0 |
Securities collateral on derivative liabilities | $ (8) | $ (4) |
Derivatives (Credit Risk on Fre
Derivatives (Credit Risk on Freestanding Derivatives) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Derivatives in a Net Liability Position (1) | $ 918 | $ 959 |
Fixed maturity securities AFS | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Collateral Provided: | 1,096 | 1,063 |
Derivatives Subject to Credit- Contingent Provisions | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Derivatives in a Net Liability Position (1) | 694 | 874 |
Derivatives Subject to Credit- Contingent Provisions | Fixed maturity securities AFS | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Collateral Provided: | 874 | 983 |
Derivatives Not Subject to Credit- Contingent Provisions | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Derivatives in a Net Liability Position (1) | 224 | 85 |
Derivatives Not Subject to Credit- Contingent Provisions | Fixed maturity securities AFS | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Collateral Provided: | $ 222 | $ 80 |
Derivatives (Embedded Derivativ
Derivatives (Embedded Derivatives) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Derivatives, Fair Value [Line Items] | ||
Embedded derivatives within liability host contracts | $ 2,308 | $ 802 |
Ceded guaranteed minimum benefits | Premiums, reinsurance and other receivables | ||
Derivatives, Fair Value [Line Items] | ||
Embedded derivatives within asset host contracts | 76 | 60 |
Direct guaranteed minimum benefits | Policyholder account balances | ||
Derivatives, Fair Value [Line Items] | ||
Embedded derivatives within liability host contracts | 1,721 | 312 |
Assumed guaranteed minimum benefits | Policyholder account balances | ||
Derivatives, Fair Value [Line Items] | ||
Embedded derivatives within liability host contracts | 532 | 312 |
Funds withheld on ceded reinsurance | Other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Embedded derivatives within liability host contracts | (38) | 36 |
Fixed annuities with equity indexed returns [Member] | Policyholder account balances | ||
Derivatives, Fair Value [Line Items] | ||
Embedded derivatives within liability host contracts | 62 | 130 |
Fixed annuities with equity indexed returns | Policyholder account balances | ||
Derivatives, Fair Value [Line Items] | ||
Embedded derivatives within liability host contracts | $ 31 | $ 12 |
Derivatives (Narrative) (Detail
Derivatives (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Derivatives, Fair Value [Line Items] | |||
Maximum Amount of Future Payments under Credit Default Swaps | $ 11,353 | $ 11,520 | |
Credit Risk Derivative Assets, at Fair Value | (60) | ||
Estimated Fair Value of Credit Default Swaps | 271 | ||
Estimated Fair Value Assets | 18,869 | 10,084 | |
Estimated Fair Value Liabilities | 4,849 | 3,737 | |
Excess securities collateral received on derivatives | 285 | $ 389 | |
Collateral Amount Not Provided Due to Downgrade Threshold | 15 | ||
Derivative Instrument Detail [Abstract] | |||
Net amounts reclassified into net derivatives gains (losses) on discontinued cash flow hedges | $ (5) | $ 1 | |
Hedging exposure to variability in future cash flows for specific length of time | 9 years | 8 years | |
Accumulated Other Comprehensive Income Loss | $ 6,300 | $ 2,200 | |
Cumulative foreign currency translation gain (loss) recorded in accumulated other comprehensive income (loss) for net investment in foreign operations hedges | 256 | 148 | |
Excess securities collateral provided on derivatives | 456 | 266 | |
Securities collateral received which the company is permitted to sell or repledge, amount that has been sold or repledged | 0 | ||
Nonperformance Risk [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net derivatives gains (losses) | 185 | $ (62) | |
Over the Counter [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Excess securities collateral received on derivatives | (336) | (156) | |
Excess securities collateral provided on derivatives | (355) | (189) | |
Cash collateral on derivative assets | (11,556) | (5,317) | |
Exchange-traded | |||
Derivatives, Fair Value [Line Items] | |||
Excess securities collateral received on derivatives | (2,200) | (1,000) | |
Excess securities collateral provided on derivatives | (158) | (143) | |
Cash collateral on derivative assets | 0 | 0 | |
Accrued Liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Estimated Fair Value Assets | 162 | 111 | |
Estimated Fair Value Liabilities | $ 34 | $ (21) |
Fair Value (Recurring Fair Valu
Fair Value (Recurring Fair Value Measurements) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Assets [Abstract] | ||
Estimated Fair Value of Fixed Maturity Securities AFS | $ 326,685 | $ 327,820 |
Equity securities | 1,050 | 1,342 |
Unit-linked and FVO Securities (1) | 11,145 | 13,102 |
Short-term investments | 5,930 | 3,850 |
Residential mortgage loans - FVO | 81,344 | 80,529 |
Derivative assets | 18,869 | 10,084 |
Separate account assets | 168,454 | 188,445 |
Liabilities [Abstract] | ||
Derivative liabilities | 4,849 | 3,737 |
Embedded derivatives within liability host contracts | 2,308 | 802 |
Separate account liabilities | 168,454 | 188,445 |
Residential mortgage loans - FVO | ||
Assets [Abstract] | ||
Residential mortgage loans - FVO | 180 | 188 |
Recurring | ||
Assets [Abstract] | ||
Estimated Fair Value of Fixed Maturity Securities AFS | 326,685 | 327,820 |
Equity securities | 1,050 | 1,342 |
Unit-linked and FVO Securities (1) | 11,145 | 13,102 |
Short-term investments | 5,435 | 3,182 |
Other investments | 697 | 689 |
Derivative assets | 18,869 | 10,084 |
Embedded derivatives within asset host contracts | 76 | 60 |
Separate account assets | 168,454 | 188,445 |
Total assets (6) | 532,591 | 544,912 |
Liabilities [Abstract] | ||
Derivative liabilities | 4,849 | 3,737 |
Embedded derivatives within liability host contracts | 2,308 | 802 |
Total liabilities | 7,222 | 4,561 |
Recurring | Interest rate contracts | ||
Assets [Abstract] | ||
Derivative assets | 11,636 | 6,707 |
Liabilities [Abstract] | ||
Derivative liabilities | 755 | 418 |
Recurring | Foreign currency exchange rate contracts | ||
Assets [Abstract] | ||
Derivative assets | 5,673 | 2,378 |
Liabilities [Abstract] | ||
Derivative liabilities | 3,603 | 2,442 |
Recurring | Credit contracts | ||
Assets [Abstract] | ||
Derivative assets | 73 | 276 |
Liabilities [Abstract] | ||
Derivative liabilities | 158 | 103 |
Recurring | Equity market contracts | ||
Assets [Abstract] | ||
Derivative assets | 1,487 | 723 |
Liabilities [Abstract] | ||
Derivative liabilities | 333 | 774 |
Recurring | Derivative Liabilities Within Separate Accounts | ||
Liabilities [Abstract] | ||
Separate account liabilities | 65 | 22 |
Recurring | Residential mortgage loans - FVO | ||
Assets [Abstract] | ||
Residential mortgage loans - FVO | 180 | 188 |
Recurring | U.S. corporate | ||
Assets [Abstract] | ||
Estimated Fair Value of Fixed Maturity Securities AFS | 85,071 | 87,753 |
Recurring | Foreign government | ||
Assets [Abstract] | ||
Estimated Fair Value of Fixed Maturity Securities AFS | 64,844 | 67,229 |
Recurring | Foreign corporate | ||
Assets [Abstract] | ||
Estimated Fair Value of Fixed Maturity Securities AFS | 59,195 | 64,165 |
Recurring | U.S. government and agency | ||
Assets [Abstract] | ||
Estimated Fair Value of Fixed Maturity Securities AFS | 47,959 | 42,084 |
Recurring | RMBS | ||
Assets [Abstract] | ||
Estimated Fair Value of Fixed Maturity Securities AFS | 30,469 | 28,547 |
Recurring | ABS | ||
Assets [Abstract] | ||
Estimated Fair Value of Fixed Maturity Securities AFS | 14,838 | 14,542 |
Recurring | Municipals | ||
Assets [Abstract] | ||
Estimated Fair Value of Fixed Maturity Securities AFS | 13,871 | 13,053 |
Recurring | CMBS | ||
Assets [Abstract] | ||
Estimated Fair Value of Fixed Maturity Securities AFS | 10,438 | 10,447 |
Recurring | Level 1 | ||
Assets [Abstract] | ||
Estimated Fair Value of Fixed Maturity Securities AFS | 21,221 | 21,061 |
Equity securities | 547 | 794 |
Unit-linked and FVO Securities (1) | 8,812 | 10,598 |
Short-term investments | 2,917 | 2,042 |
Other investments | 65 | 74 |
Derivative assets | 34 | 15 |
Embedded derivatives within asset host contracts | 0 | 0 |
Separate account assets | 73,366 | 86,790 |
Total assets (6) | 106,962 | 121,374 |
Liabilities [Abstract] | ||
Derivative liabilities | 24 | 11 |
Embedded derivatives within liability host contracts | 0 | 0 |
Total liabilities | 28 | 12 |
Recurring | Level 1 | Interest rate contracts | ||
Assets [Abstract] | ||
Derivative assets | 1 | 2 |
Liabilities [Abstract] | ||
Derivative liabilities | 5 | 3 |
Recurring | Level 1 | Foreign currency exchange rate contracts | ||
Assets [Abstract] | ||
Derivative assets | 5 | 7 |
Liabilities [Abstract] | ||
Derivative liabilities | 0 | 0 |
Recurring | Level 1 | Credit contracts | ||
Assets [Abstract] | ||
Derivative assets | 0 | 0 |
Liabilities [Abstract] | ||
Derivative liabilities | 0 | 0 |
Recurring | Level 1 | Equity market contracts | ||
Assets [Abstract] | ||
Derivative assets | 28 | 6 |
Liabilities [Abstract] | ||
Derivative liabilities | 19 | 8 |
Recurring | Level 1 | Derivative Liabilities Within Separate Accounts | ||
Liabilities [Abstract] | ||
Separate account liabilities | 4 | 1 |
Recurring | Level 1 | Residential mortgage loans - FVO | ||
Assets [Abstract] | ||
Residential mortgage loans - FVO | 0 | 0 |
Recurring | Level 1 | U.S. corporate | ||
Assets [Abstract] | ||
Estimated Fair Value of Fixed Maturity Securities AFS | 0 | 0 |
Recurring | Level 1 | Foreign government | ||
Assets [Abstract] | ||
Estimated Fair Value of Fixed Maturity Securities AFS | 0 | 0 |
Recurring | Level 1 | Foreign corporate | ||
Assets [Abstract] | ||
Estimated Fair Value of Fixed Maturity Securities AFS | 0 | 0 |
Recurring | Level 1 | U.S. government and agency | ||
Assets [Abstract] | ||
Estimated Fair Value of Fixed Maturity Securities AFS | 21,060 | 21,058 |
Recurring | Level 1 | RMBS | ||
Assets [Abstract] | ||
Estimated Fair Value of Fixed Maturity Securities AFS | 161 | 3 |
Recurring | Level 1 | ABS | ||
Assets [Abstract] | ||
Estimated Fair Value of Fixed Maturity Securities AFS | 0 | 0 |
Recurring | Level 1 | Municipals | ||
Assets [Abstract] | ||
Estimated Fair Value of Fixed Maturity Securities AFS | 0 | 0 |
Recurring | Level 1 | CMBS | ||
Assets [Abstract] | ||
Estimated Fair Value of Fixed Maturity Securities AFS | 0 | 0 |
Recurring | Level 2 | ||
Assets [Abstract] | ||
Estimated Fair Value of Fixed Maturity Securities AFS | 281,537 | 287,948 |
Equity securities | 131 | 118 |
Unit-linked and FVO Securities (1) | 1,816 | 1,879 |
Short-term investments | 2,150 | 1,108 |
Other investments | 157 | 160 |
Derivative assets | 17,513 | 9,882 |
Embedded derivatives within asset host contracts | 0 | 0 |
Separate account assets | 94,027 | 100,668 |
Total assets (6) | 397,331 | 401,763 |
Liabilities [Abstract] | ||
Derivative liabilities | 4,542 | 3,393 |
Embedded derivatives within liability host contracts | 0 | 0 |
Total liabilities | 4,588 | 3,407 |
Recurring | Level 2 | Interest rate contracts | ||
Assets [Abstract] | ||
Derivative assets | 10,417 | 6,616 |
Liabilities [Abstract] | ||
Derivative liabilities | 748 | 220 |
Recurring | Level 2 | Foreign currency exchange rate contracts | ||
Assets [Abstract] | ||
Derivative assets | 5,651 | 2,336 |
Liabilities [Abstract] | ||
Derivative liabilities | 3,354 | 2,324 |
Recurring | Level 2 | Credit contracts | ||
Assets [Abstract] | ||
Derivative assets | 53 | 244 |
Liabilities [Abstract] | ||
Derivative liabilities | 137 | 102 |
Recurring | Level 2 | Equity market contracts | ||
Assets [Abstract] | ||
Derivative assets | 1,392 | 686 |
Liabilities [Abstract] | ||
Derivative liabilities | 303 | 747 |
Recurring | Level 2 | Derivative Liabilities Within Separate Accounts | ||
Liabilities [Abstract] | ||
Separate account liabilities | 46 | 14 |
Recurring | Level 2 | Residential mortgage loans - FVO | ||
Assets [Abstract] | ||
Residential mortgage loans - FVO | 0 | 0 |
Recurring | Level 2 | U.S. corporate | ||
Assets [Abstract] | ||
Estimated Fair Value of Fixed Maturity Securities AFS | 75,876 | 81,501 |
Recurring | Level 2 | Foreign government | ||
Assets [Abstract] | ||
Estimated Fair Value of Fixed Maturity Securities AFS | 64,740 | 67,112 |
Recurring | Level 2 | Foreign corporate | ||
Assets [Abstract] | ||
Estimated Fair Value of Fixed Maturity Securities AFS | 48,581 | 56,188 |
Recurring | Level 2 | U.S. government and agency | ||
Assets [Abstract] | ||
Estimated Fair Value of Fixed Maturity Securities AFS | 26,899 | 21,026 |
Recurring | Level 2 | RMBS | ||
Assets [Abstract] | ||
Estimated Fair Value of Fixed Maturity Securities AFS | 27,676 | 25,682 |
Recurring | Level 2 | ABS | ||
Assets [Abstract] | ||
Estimated Fair Value of Fixed Maturity Securities AFS | 13,878 | 13,326 |
Recurring | Level 2 | Municipals | ||
Assets [Abstract] | ||
Estimated Fair Value of Fixed Maturity Securities AFS | 13,871 | 13,046 |
Recurring | Level 2 | CMBS | ||
Assets [Abstract] | ||
Estimated Fair Value of Fixed Maturity Securities AFS | 10,016 | 10,067 |
Recurring | Level 3 | ||
Assets [Abstract] | ||
Estimated Fair Value of Fixed Maturity Securities AFS | 23,927 | 18,811 |
Equity securities | 372 | 430 |
Unit-linked and FVO Securities (1) | 517 | 625 |
Short-term investments | 368 | 32 |
Other investments | 475 | 455 |
Derivative assets | 1,322 | 187 |
Embedded derivatives within asset host contracts | 76 | 60 |
Separate account assets | 1,061 | 987 |
Total assets (6) | 28,298 | 21,775 |
Liabilities [Abstract] | ||
Derivative liabilities | 283 | 333 |
Embedded derivatives within liability host contracts | 2,308 | 802 |
Total liabilities | 2,606 | 1,142 |
Recurring | Level 3 | Interest rate contracts | ||
Assets [Abstract] | ||
Derivative assets | 1,218 | 89 |
Liabilities [Abstract] | ||
Derivative liabilities | 2 | 195 |
Recurring | Level 3 | Foreign currency exchange rate contracts | ||
Assets [Abstract] | ||
Derivative assets | 17 | 35 |
Liabilities [Abstract] | ||
Derivative liabilities | 249 | 118 |
Recurring | Level 3 | Credit contracts | ||
Assets [Abstract] | ||
Derivative assets | 20 | 32 |
Liabilities [Abstract] | ||
Derivative liabilities | 21 | 1 |
Recurring | Level 3 | Equity market contracts | ||
Assets [Abstract] | ||
Derivative assets | 67 | 31 |
Liabilities [Abstract] | ||
Derivative liabilities | 11 | 19 |
Recurring | Level 3 | Derivative Liabilities Within Separate Accounts | ||
Liabilities [Abstract] | ||
Separate account liabilities | 15 | 7 |
Recurring | Level 3 | Residential mortgage loans - FVO | ||
Assets [Abstract] | ||
Residential mortgage loans - FVO | 180 | 188 |
Recurring | Level 3 | U.S. corporate | ||
Assets [Abstract] | ||
Estimated Fair Value of Fixed Maturity Securities AFS | 9,195 | 6,252 |
Recurring | Level 3 | Foreign government | ||
Assets [Abstract] | ||
Estimated Fair Value of Fixed Maturity Securities AFS | 104 | 117 |
Recurring | Level 3 | Foreign corporate | ||
Assets [Abstract] | ||
Estimated Fair Value of Fixed Maturity Securities AFS | 10,614 | 7,977 |
Recurring | Level 3 | U.S. government and agency | ||
Assets [Abstract] | ||
Estimated Fair Value of Fixed Maturity Securities AFS | 0 | 0 |
Recurring | Level 3 | RMBS | ||
Assets [Abstract] | ||
Estimated Fair Value of Fixed Maturity Securities AFS | 2,632 | 2,862 |
Recurring | Level 3 | ABS | ||
Assets [Abstract] | ||
Estimated Fair Value of Fixed Maturity Securities AFS | 960 | 1,216 |
Recurring | Level 3 | Municipals | ||
Assets [Abstract] | ||
Estimated Fair Value of Fixed Maturity Securities AFS | 0 | 7 |
Recurring | Level 3 | CMBS | ||
Assets [Abstract] | ||
Estimated Fair Value of Fixed Maturity Securities AFS | 422 | 380 |
Other limited partnership interests | Recurring | ||
Assets [Abstract] | ||
Investments, Fair Value Disclosure | $ 92 | $ 95 |
Fair Value (Quantitative Inform
Fair Value (Quantitative Information) (Details) | Mar. 31, 2020 | Dec. 31, 2019 |
Minimum | Interest rate contracts | Measurement Input, Swap Yield | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative Asset (Liability) Net, Measurement Input | 66 | 190 |
Minimum | Interest rate contracts | Measurement Input, Repurchase Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative Asset (Liability) Net, Measurement Input | (18) | (6) |
Minimum | Foreign currency exchange rate contracts | Measurement Input, Swap Yield | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative Asset (Liability) Net, Measurement Input | (224) | (125) |
Minimum | Credit contracts | Measurement Input, Credit Spread | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative Asset (Liability) Net, Measurement Input | 98 | 96 |
Minimum | Equity market contracts | Measurement Input, Price Volatility | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative Asset (Liability) Net, Measurement Input | 0.21 | 0.14 |
Minimum | Equity market contracts | Measurement Input, Correlation | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative Asset (Liability) Net, Measurement Input | 0.10 | 0.10 |
Minimum | Embedded derivatives direct, assumed and ceded guaranteed minimum benefits | Measurement Input, Utilization Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded Derivative Asset (Liability) Net, Measurement Input | 0 | 0 |
Minimum | Embedded derivatives direct, assumed and ceded guaranteed minimum benefits | Measurement Input, Withdrawal Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded Derivative Asset (Liability) Net, Measurement Input | 0 | 0 |
Minimum | Embedded derivatives direct, assumed and ceded guaranteed minimum benefits | Measurement Input, Long-Term Equity Volatility | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded Derivative Asset (Liability) Net, Measurement Input | 0.0739 | 0.0601 |
Minimum | Embedded derivatives direct, assumed and ceded guaranteed minimum benefits | Measurement Input, Counterparty Credit Risk | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded Derivative Asset (Liability) Net, Measurement Input | 0.0008 | 0.0003 |
Minimum | Embedded derivatives direct, assumed and ceded guaranteed minimum benefits | Durations 1 - 10 | Measurement Input, Lapse Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded Derivative Asset (Liability) Net, Measurement Input | 0.0025 | 0.0025 |
Minimum | Embedded derivatives direct, assumed and ceded guaranteed minimum benefits | Durations 11 - 20 | Measurement Input, Lapse Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded Derivative Asset (Liability) Net, Measurement Input | 0.0050 | 0.0050 |
Minimum | Embedded derivatives direct, assumed and ceded guaranteed minimum benefits | Durations 21 - 116 | Measurement Input, Lapse Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded Derivative Asset (Liability) Net, Measurement Input | 0.0050 | 0.0050 |
Minimum | Embedded derivatives direct, assumed and ceded guaranteed minimum benefits | Ages 0 - 40 | Measurement Input, Mortality Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded Derivative Asset (Liability) Net, Measurement Input | 0 | 0 |
Minimum | Embedded derivatives direct, assumed and ceded guaranteed minimum benefits | Ages 41 - 60 | Measurement Input, Mortality Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded Derivative Asset (Liability) Net, Measurement Input | 0.0003 | 0.0003 |
Minimum | Embedded derivatives direct, assumed and ceded guaranteed minimum benefits | Ages 61 - 115 | Measurement Input, Mortality Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded Derivative Asset (Liability) Net, Measurement Input | 0.0013 | 0.0013 |
Minimum | U.S. corporate and foreign corporate securities | Valuation Technique, Matrix Pricing | Measurement Input, Offered Price | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-sale, Measurement Input | 0 | 5 |
Minimum | U.S. corporate and foreign corporate securities | Valuation Technique, Market Approach | Measurement Input, Quoted Price | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-sale, Measurement Input | 20 | 25 |
Minimum | U.S. corporate and foreign corporate securities | Valuation Technique, Consensus Pricing Model | Measurement Input, Offered Price | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-sale, Measurement Input | 50 | 81 |
Minimum | RMBS | Valuation Technique, Market Approach | Measurement Input, Quoted Price | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-sale, Measurement Input | 0 | 0 |
Minimum | ABS | Valuation Technique, Market Approach | Measurement Input, Quoted Price | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-sale, Measurement Input | 3 | 3 |
Minimum | ABS | Valuation Technique, Consensus Pricing Model | Measurement Input, Offered Price | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-sale, Measurement Input | 100 | 99 |
Maximum | Interest rate contracts | Measurement Input, Swap Yield | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative Asset (Liability) Net, Measurement Input | 147 | 251 |
Maximum | Interest rate contracts | Measurement Input, Repurchase Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative Asset (Liability) Net, Measurement Input | 0 | 6 |
Maximum | Foreign currency exchange rate contracts | Measurement Input, Swap Yield | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative Asset (Liability) Net, Measurement Input | 328 | 328 |
Maximum | Credit contracts | Measurement Input, Credit Spread | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative Asset (Liability) Net, Measurement Input | 104 | 100 |
Maximum | Equity market contracts | Measurement Input, Price Volatility | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative Asset (Liability) Net, Measurement Input | 0.56 | 0.23 |
Maximum | Equity market contracts | Measurement Input, Correlation | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative Asset (Liability) Net, Measurement Input | 0.30 | 0.30 |
Maximum | Embedded derivatives direct, assumed and ceded guaranteed minimum benefits | Measurement Input, Utilization Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded Derivative Asset (Liability) Net, Measurement Input | 0.22 | 0.22 |
Maximum | Embedded derivatives direct, assumed and ceded guaranteed minimum benefits | Measurement Input, Withdrawal Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded Derivative Asset (Liability) Net, Measurement Input | 0.20 | 0.20 |
Maximum | Embedded derivatives direct, assumed and ceded guaranteed minimum benefits | Measurement Input, Long-Term Equity Volatility | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded Derivative Asset (Liability) Net, Measurement Input | 0.30 | 0.30 |
Maximum | Embedded derivatives direct, assumed and ceded guaranteed minimum benefits | Measurement Input, Counterparty Credit Risk | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded Derivative Asset (Liability) Net, Measurement Input | 0.0169 | 0.0130 |
Maximum | Embedded derivatives direct, assumed and ceded guaranteed minimum benefits | Durations 1 - 10 | Measurement Input, Lapse Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded Derivative Asset (Liability) Net, Measurement Input | 1 | 1 |
Maximum | Embedded derivatives direct, assumed and ceded guaranteed minimum benefits | Durations 11 - 20 | Measurement Input, Lapse Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded Derivative Asset (Liability) Net, Measurement Input | 1 | 1 |
Maximum | Embedded derivatives direct, assumed and ceded guaranteed minimum benefits | Durations 21 - 116 | Measurement Input, Lapse Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded Derivative Asset (Liability) Net, Measurement Input | 1 | 1 |
Maximum | Embedded derivatives direct, assumed and ceded guaranteed minimum benefits | Ages 0 - 40 | Measurement Input, Mortality Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded Derivative Asset (Liability) Net, Measurement Input | 0.0018 | 0.0018 |
Maximum | Embedded derivatives direct, assumed and ceded guaranteed minimum benefits | Ages 41 - 60 | Measurement Input, Mortality Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded Derivative Asset (Liability) Net, Measurement Input | 0.0080 | 0.0080 |
Maximum | Embedded derivatives direct, assumed and ceded guaranteed minimum benefits | Ages 61 - 115 | Measurement Input, Mortality Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded Derivative Asset (Liability) Net, Measurement Input | 1 | 1 |
Maximum | U.S. corporate and foreign corporate securities | Valuation Technique, Matrix Pricing | Measurement Input, Offered Price | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-sale, Measurement Input | 191 | 145 |
Maximum | U.S. corporate and foreign corporate securities | Valuation Technique, Market Approach | Measurement Input, Quoted Price | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-sale, Measurement Input | 130 | 131 |
Maximum | U.S. corporate and foreign corporate securities | Valuation Technique, Consensus Pricing Model | Measurement Input, Offered Price | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-sale, Measurement Input | 108 | 109 |
Maximum | RMBS | Valuation Technique, Market Approach | Measurement Input, Quoted Price | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-sale, Measurement Input | 126 | 119 |
Maximum | ABS | Valuation Technique, Market Approach | Measurement Input, Quoted Price | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-sale, Measurement Input | 109 | 119 |
Maximum | ABS | Valuation Technique, Consensus Pricing Model | Measurement Input, Offered Price | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-sale, Measurement Input | 100 | 104 |
Weighted Average | Interest rate contracts | Measurement Input, Swap Yield | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative Asset (Liability) Net, Measurement Input | 117 | |
Weighted Average | Interest rate contracts | Measurement Input, Repurchase Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative Asset (Liability) Net, Measurement Input | (10) | |
Weighted Average | Foreign currency exchange rate contracts | Measurement Input, Swap Yield | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative Asset (Liability) Net, Measurement Input | (131) | |
Weighted Average | Credit contracts | Measurement Input, Credit Spread | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative Asset (Liability) Net, Measurement Input | 100 | |
Weighted Average | Equity market contracts | Measurement Input, Price Volatility | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative Asset (Liability) Net, Measurement Input | 0.35 | |
Weighted Average | Equity market contracts | Measurement Input, Correlation | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative Asset (Liability) Net, Measurement Input | 0.13 | |
Weighted Average | Embedded derivatives direct, assumed and ceded guaranteed minimum benefits | Measurement Input, Utilization Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded Derivative Asset (Liability) Net, Measurement Input | 0.0090 | |
Weighted Average | Embedded derivatives direct, assumed and ceded guaranteed minimum benefits | Measurement Input, Withdrawal Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded Derivative Asset (Liability) Net, Measurement Input | 0.0423 | |
Weighted Average | Embedded derivatives direct, assumed and ceded guaranteed minimum benefits | Measurement Input, Long-Term Equity Volatility | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded Derivative Asset (Liability) Net, Measurement Input | 0.1830 | |
Weighted Average | Embedded derivatives direct, assumed and ceded guaranteed minimum benefits | Measurement Input, Counterparty Credit Risk | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded Derivative Asset (Liability) Net, Measurement Input | 0.0049 | |
Weighted Average | Embedded derivatives direct, assumed and ceded guaranteed minimum benefits | Durations 1 - 10 | Measurement Input, Lapse Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded Derivative Asset (Liability) Net, Measurement Input | 0.0790 | |
Weighted Average | Embedded derivatives direct, assumed and ceded guaranteed minimum benefits | Durations 11 - 20 | Measurement Input, Lapse Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded Derivative Asset (Liability) Net, Measurement Input | 0.0640 | |
Weighted Average | Embedded derivatives direct, assumed and ceded guaranteed minimum benefits | Durations 21 - 116 | Measurement Input, Lapse Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded Derivative Asset (Liability) Net, Measurement Input | 0.0640 | |
Weighted Average | Embedded derivatives direct, assumed and ceded guaranteed minimum benefits | Ages 0 - 40 | Measurement Input, Mortality Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded Derivative Asset (Liability) Net, Measurement Input | 0 | |
Weighted Average | Embedded derivatives direct, assumed and ceded guaranteed minimum benefits | Ages 41 - 60 | Measurement Input, Mortality Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded Derivative Asset (Liability) Net, Measurement Input | 0.0030 | |
Weighted Average | Embedded derivatives direct, assumed and ceded guaranteed minimum benefits | Ages 61 - 115 | Measurement Input, Mortality Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded Derivative Asset (Liability) Net, Measurement Input | 0.0190 | |
Weighted Average | U.S. corporate and foreign corporate securities | Valuation Technique, Matrix Pricing | Measurement Input, Offered Price | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-sale, Measurement Input | 104 | 110 |
Weighted Average | U.S. corporate and foreign corporate securities | Valuation Technique, Market Approach | Measurement Input, Quoted Price | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-sale, Measurement Input | 96 | 100 |
Weighted Average | U.S. corporate and foreign corporate securities | Valuation Technique, Consensus Pricing Model | Measurement Input, Offered Price | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-sale, Measurement Input | 99 | 102 |
Weighted Average | RMBS | Valuation Technique, Market Approach | Measurement Input, Quoted Price | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-sale, Measurement Input | 89 | 95 |
Weighted Average | ABS | Valuation Technique, Market Approach | Measurement Input, Quoted Price | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-sale, Measurement Input | 91 | 98 |
Weighted Average | ABS | Valuation Technique, Consensus Pricing Model | Measurement Input, Offered Price | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-sale, Measurement Input | 100 | 100 |
Fair Value (Unobservable Input
Fair Value (Unobservable Input Reconciliation) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Residential mortgage loans - FVO | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, beginning of period | $ 188 | $ 299 |
Total realized/unrealized gains (losses) included in net income (loss) | 2 | 2 |
Total realized/unrealized gains (losses) included in AOCI | 0 | 0 |
Purchases | 0 | 0 |
Sales | (5) | (16) |
Issuances | 0 | 0 |
Settlements | (5) | (9) |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Balance, end of period | 180 | 276 |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 0 | 0 |
Changes in unrealized gains (losses) included in AOCI for the instruments still held at end of period | 0 | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 0 | 0 |
Changes in unrealized gains (losses) included in AOCI for the instruments still held at end of period | 0 | |
Net Derivatives | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 40 | 69 |
Changes in unrealized gains (losses) included in AOCI for the instruments still held at end of period | 1,122 | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Balance, beginning of period | (146) | (225) |
Total realized/unrealized gains (losses) included in net income (loss) | 71 | 70 |
Total realized/unrealized gains (losses) included in AOCI | 1,200 | 97 |
Purchases | (10) | 0 |
Sales | 0 | 0 |
Issuances | 0 | 0 |
Settlements | (76) | (11) |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Balance, end of period | 1,039 | (69) |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 40 | 69 |
Changes in unrealized gains (losses) included in AOCI for the instruments still held at end of period | 1,122 | |
Net Embedded Derivatives | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | (1,422) | 192 |
Changes in unrealized gains (losses) included in AOCI for the instruments still held at end of period | (4) | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Balance, beginning of period | (742) | (739) |
Total realized/unrealized gains (losses) included in net income (loss) | (1,422) | 193 |
Total realized/unrealized gains (losses) included in AOCI | (4) | 7 |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Issuances | 0 | 0 |
Settlements | (64) | (66) |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Balance, end of period | (2,232) | (605) |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | (1,422) | 192 |
Changes in unrealized gains (losses) included in AOCI for the instruments still held at end of period | (4) | |
Corporate fixed maturity securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, beginning of period | 14,229 | 10,467 |
Total realized/unrealized gains (losses) included in net income (loss) | (60) | 9 |
Total realized/unrealized gains (losses) included in AOCI | (1,200) | 394 |
Purchases | 2,392 | 463 |
Sales | (565) | (270) |
Issuances | 0 | 0 |
Settlements | 0 | 0 |
Transfers into Level 3 | 5,503 | 284 |
Transfers out of Level 3 | (490) | (385) |
Balance, end of period | 19,809 | 10,962 |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | (59) | (1) |
Changes in unrealized gains (losses) included in AOCI for the instruments still held at end of period | (1,201) | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | (59) | (1) |
Changes in unrealized gains (losses) included in AOCI for the instruments still held at end of period | (1,201) | |
Foreign government | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, beginning of period | 117 | 138 |
Total realized/unrealized gains (losses) included in net income (loss) | (2) | 0 |
Total realized/unrealized gains (losses) included in AOCI | (7) | 0 |
Purchases | 32 | 20 |
Sales | (3) | (1) |
Issuances | 0 | 0 |
Settlements | 0 | 0 |
Transfers into Level 3 | 28 | 0 |
Transfers out of Level 3 | (61) | 0 |
Balance, end of period | 104 | 157 |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | (2) | 0 |
Changes in unrealized gains (losses) included in AOCI for the instruments still held at end of period | (7) | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | (2) | 0 |
Changes in unrealized gains (losses) included in AOCI for the instruments still held at end of period | (7) | |
Structured Securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, beginning of period | 4,458 | 4,266 |
Total realized/unrealized gains (losses) included in net income (loss) | 10 | 14 |
Total realized/unrealized gains (losses) included in AOCI | (311) | 22 |
Purchases | 372 | 264 |
Sales | (186) | (139) |
Issuances | 0 | 0 |
Settlements | 0 | 0 |
Transfers into Level 3 | 45 | 1 |
Transfers out of Level 3 | (374) | (359) |
Balance, end of period | 4,014 | 4,069 |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 11 | 13 |
Changes in unrealized gains (losses) included in AOCI for the instruments still held at end of period | (312) | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 11 | 13 |
Changes in unrealized gains (losses) included in AOCI for the instruments still held at end of period | (312) | |
Municipals | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, beginning of period | 7 | 0 |
Total realized/unrealized gains (losses) included in net income (loss) | 0 | 0 |
Total realized/unrealized gains (losses) included in AOCI | 0 | 0 |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Issuances | 0 | 0 |
Settlements | 0 | 0 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | (7) | 0 |
Balance, end of period | 0 | 0 |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 0 | 0 |
Changes in unrealized gains (losses) included in AOCI for the instruments still held at end of period | 0 | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 0 | 0 |
Changes in unrealized gains (losses) included in AOCI for the instruments still held at end of period | 0 | |
Equity Securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, beginning of period | 430 | 419 |
Total realized/unrealized gains (losses) included in net income (loss) | (28) | 30 |
Total realized/unrealized gains (losses) included in AOCI | 0 | 0 |
Purchases | 2 | 6 |
Sales | (32) | (21) |
Issuances | 0 | 0 |
Settlements | 0 | 0 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Balance, end of period | 372 | 434 |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | (12) | 23 |
Changes in unrealized gains (losses) included in AOCI for the instruments still held at end of period | 0 | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | (12) | 23 |
Changes in unrealized gains (losses) included in AOCI for the instruments still held at end of period | 0 | |
Unit-linked and FVO Securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, beginning of period | 625 | 405 |
Total realized/unrealized gains (losses) included in net income (loss) | (63) | 14 |
Total realized/unrealized gains (losses) included in AOCI | 0 | 0 |
Purchases | 140 | 41 |
Sales | (103) | (3) |
Issuances | 0 | 0 |
Settlements | 0 | 0 |
Transfers into Level 3 | 14 | 4 |
Transfers out of Level 3 | (96) | (4) |
Balance, end of period | 517 | 457 |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | (65) | 15 |
Changes in unrealized gains (losses) included in AOCI for the instruments still held at end of period | 0 | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | (65) | 15 |
Changes in unrealized gains (losses) included in AOCI for the instruments still held at end of period | 0 | |
Short-term Investments | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, beginning of period | 32 | 33 |
Total realized/unrealized gains (losses) included in net income (loss) | 0 | 0 |
Total realized/unrealized gains (losses) included in AOCI | (1) | 1 |
Purchases | 354 | 110 |
Sales | (8) | (6) |
Issuances | 0 | 0 |
Settlements | 0 | 0 |
Transfers into Level 3 | 5 | 0 |
Transfers out of Level 3 | (14) | 0 |
Balance, end of period | 368 | 138 |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 0 | 0 |
Changes in unrealized gains (losses) included in AOCI for the instruments still held at end of period | (1) | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 0 | 0 |
Changes in unrealized gains (losses) included in AOCI for the instruments still held at end of period | (1) | |
Other Investments [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, beginning of period | 455 | 39 |
Total realized/unrealized gains (losses) included in net income (loss) | 4 | 0 |
Total realized/unrealized gains (losses) included in AOCI | 0 | 0 |
Purchases | 16 | 129 |
Sales | 0 | 0 |
Issuances | 0 | 0 |
Settlements | 0 | 0 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Balance, end of period | 475 | 168 |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 0 | 0 |
Changes in unrealized gains (losses) included in AOCI for the instruments still held at end of period | 0 | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 0 | 0 |
Changes in unrealized gains (losses) included in AOCI for the instruments still held at end of period | 0 | |
Separate Accounts | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, beginning of period | 980 | 937 |
Total realized/unrealized gains (losses) included in net income (loss) | (8) | 3 |
Total realized/unrealized gains (losses) included in AOCI | 0 | 0 |
Purchases | 144 | 80 |
Sales | (62) | (122) |
Issuances | (1) | 2 |
Settlements | 0 | (1) |
Transfers into Level 3 | 10 | 0 |
Transfers out of Level 3 | (17) | (2) |
Balance, end of period | 1,046 | 897 |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 0 | 0 |
Changes in unrealized gains (losses) included in AOCI for the instruments still held at end of period | 0 | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 0 | $ 0 |
Changes in unrealized gains (losses) included in AOCI for the instruments still held at end of period | $ 0 |
Fair Value (Fair Value Option f
Fair Value (Fair Value Option for Residential Mortgage Loans) (Details) - Residential mortgage loans - FVO - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Unpaid principal balance | $ 196 | $ 209 |
Difference between estimated fair value and unpaid principal balance | (16) | (21) |
Carrying value at estimated fair value | 180 | 188 |
Loans in nonaccrual status | 43 | 47 |
Loans more than 90 days past due | 18 | 18 |
Loans in nonaccrual status or more than 90 days past due, or both — difference between aggregate estimated fair value and unpaid principal balance | $ (16) | $ (19) |
Fair Value (Financial Instrumen
Fair Value (Financial Instruments Carried at Other Than Fair Value) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Assets | ||
Policy loans | $ 9,638 | $ 9,680 |
Liabilities | ||
Collateral financing arrangement | 981 | 993 |
Junior subordinated debt securities | 3,151 | 3,150 |
Separate account liabilities | 168,454 | 188,445 |
Carrying Value | ||
Assets | ||
Mortgage loans | 81,164 | 80,341 |
Policy loans | 9,638 | 9,680 |
Other invested assets | 1,188 | 1,183 |
Premiums, reinsurance and other receivables | 3,648 | 3,678 |
Other assets | 314 | 318 |
Liabilities | ||
Policyholder account balances | 118,419 | 119,262 |
Long-term debt | 14,385 | 13,336 |
Collateral financing arrangement | 981 | 993 |
Junior subordinated debt securities | 3,151 | 3,150 |
Other liabilities | 4,167 | 2,045 |
Separate account liabilities | 100,410 | 110,837 |
Estimated Fair Value | ||
Assets | ||
Mortgage loans | 83,138 | 83,079 |
Policy loans | 12,265 | 11,655 |
Other invested assets | 1,189 | 1,183 |
Premiums, reinsurance and other receivables | 3,834 | 3,884 |
Other assets | 296 | 319 |
Liabilities | ||
Policyholder account balances | 126,635 | 122,998 |
Long-term debt | 15,966 | 15,830 |
Collateral financing arrangement | 790 | 810 |
Junior subordinated debt securities | 3,749 | 4,405 |
Other liabilities | 5,377 | 2,819 |
Separate account liabilities | 100,410 | 110,837 |
Estimated Fair Value | Level 1 | ||
Assets | ||
Mortgage loans | 0 | 0 |
Policy loans | 0 | 0 |
Other invested assets | 0 | 0 |
Premiums, reinsurance and other receivables | 0 | 0 |
Other assets | 0 | 0 |
Liabilities | ||
Policyholder account balances | 0 | 0 |
Long-term debt | 0 | 0 |
Collateral financing arrangement | 0 | 0 |
Junior subordinated debt securities | 0 | 0 |
Other liabilities | 0 | 0 |
Separate account liabilities | 0 | 0 |
Estimated Fair Value | Level 2 | ||
Assets | ||
Mortgage loans | 0 | 0 |
Policy loans | 330 | 326 |
Other invested assets | 849 | 809 |
Premiums, reinsurance and other receivables | 1,121 | 1,178 |
Other assets | 110 | 131 |
Liabilities | ||
Policyholder account balances | 0 | 0 |
Long-term debt | 15,966 | 15,830 |
Collateral financing arrangement | 0 | 0 |
Junior subordinated debt securities | 3,749 | 4,405 |
Other liabilities | 2,660 | 540 |
Separate account liabilities | 100,410 | 110,837 |
Estimated Fair Value | Level 3 | ||
Assets | ||
Mortgage loans | 83,138 | 83,079 |
Policy loans | 11,935 | 11,329 |
Other invested assets | 340 | 374 |
Premiums, reinsurance and other receivables | 2,713 | 2,706 |
Other assets | 186 | 188 |
Liabilities | ||
Policyholder account balances | 126,635 | 122,998 |
Long-term debt | 0 | 0 |
Collateral financing arrangement | 790 | 810 |
Junior subordinated debt securities | 0 | 0 |
Other liabilities | 2,717 | 2,279 |
Separate account liabilities | $ 0 | $ 0 |
Long-term Debt (Details)
Long-term Debt (Details) $ in Millions | Mar. 31, 2020USD ($) |
Debt Instrument [Line Items] | |
Debt Issuance Costs, Gross | $ 6 |
Senior Note $1.0B March2030 [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Face Amount | $ 1,000 |
Debt Instrument, Interest Rate, Stated Percentage | 4.55% |
Equity Equity (Preferred Stock
Equity Equity (Preferred Stock Classification) (Details) - USD ($) $ / shares in Units, $ in Millions | Jan. 15, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 |
Class of Stock [Line Items] | ||||
Treasury Stock, Value, Acquired, Cost Method | $ 500 | $ 500 | ||
Preferred Stock, Shares Authorized | 200,000,000 | 200,000,000 | ||
Preferred Stock, Shares Issued | 26,072,200 | 26,032,200 | ||
Preferred Stock, Shares Outstanding | 26,072,200 | 26,032,200 | ||
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 | ||
Proceeds from Issuance of Preferred Stock and Preference Stock | $ 972 | $ 0 | ||
Series A Preferred Stock | ||||
Class of Stock [Line Items] | ||||
Preferred Stock, Shares Authorized | 27,600,000 | 27,600,000 | ||
Preferred Stock, Shares Issued | 24,000,000 | 24,000,000 | ||
Preferred Stock, Shares Outstanding | 24,000,000 | 24,000,000 | ||
Series C Preferred Stock | ||||
Class of Stock [Line Items] | ||||
Preferred Stock, Shares Authorized | 1,500,000 | 1,500,000 | ||
Preferred Stock, Shares Issued | 1,500,000 | 1,500,000 | ||
Preferred Stock, Shares Outstanding | 1,500,000 | 1,500,000 | ||
Series D Preferred Stock | ||||
Class of Stock [Line Items] | ||||
Preferred Stock, Shares Authorized | 500,000 | 500,000 | ||
Preferred Stock, Shares Issued | 500,000 | 500,000 | ||
Preferred Stock, Shares Outstanding | 500,000 | 500,000 | ||
Series E Preferred Stock | ||||
Class of Stock [Line Items] | ||||
Preferred Stock, Shares Authorized | 32,200 | 32,200 | ||
Preferred Stock, Shares Issued | 32,200 | 32,200 | ||
Preferred Stock, Shares Outstanding | 32,200 | 32,200 | ||
Series F Preferred Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Preferred Stock, Shares Authorized | 40,000 | 0 | ||
Preferred Stock, Shares Issued | 40,000 | 40,000 | 0 | |
Preferred Stock, Shares Outstanding | 40,000 | 0 | ||
Preferred Stock, Dividend Rate, Percentage | 4.75% | |||
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | |||
Preferred Stock, Liquidation Preference Per Share | $ 25,000 | |||
Proceeds from Issuance of Preferred Stock and Preference Stock | $ 972 | |||
Payments of Stock Issuance Costs | $ 28 | |||
Series A Junior Preferred Stock | ||||
Class of Stock [Line Items] | ||||
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 | ||
Preferred Stock, Shares Issued | 0 | 0 | ||
Preferred Stock, Shares Outstanding | 0 | 0 | ||
Not Designated Preferred Stock | ||||
Class of Stock [Line Items] | ||||
Preferred Stock, Shares Authorized | 160,327,800 | 160,367,800 | ||
Preferred Stock, Shares Issued | 0 | 0 | ||
Preferred Stock, Shares Outstanding | 0 | 0 | ||
RatingAgency [Member] | Series F Preferred Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Preferred Stock, Liquidation Preference Per Share | $ 25,500 |
Equity Equity (Preferred Stoc_2
Equity Equity (Preferred Stock Dividends) (Details) - USD ($) $ / shares in Units, $ in Millions | Mar. 05, 2020 | Feb. 18, 2020 | Mar. 05, 2019 | Feb. 15, 2019 | Mar. 31, 2020 | Mar. 31, 2019 |
Preferred Stock | ||||||
Dividends Payable [Line Items] | ||||||
Dividends Payable, Date Declared | Mar. 5, 2020 | Feb. 18, 2020 | Mar. 5, 2019 | Feb. 15, 2019 | ||
Dividends Payable, Date of Record | Mar. 1, 2020 | Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2019 | ||
Dividends Payable, Date to be Paid | Mar. 16, 2020 | Mar. 16, 2020 | Mar. 15, 2019 | Mar. 15, 2019 | ||
Series A Preferred Stock | ||||||
Dividends Payable [Line Items] | ||||||
Preferred Stock, Dividends Per Share, Declared | $ 0.253 | $ 0 | $ 0.250 | $ 0 | $ 0.253 | $ 0.250 |
Dividends, Preferred Stock, Cash | $ 6 | $ 0 | $ 6 | $ 0 | $ 6 | $ 6 |
Series C Preferred Stock | ||||||
Dividends Payable [Line Items] | ||||||
Preferred Stock, Dividends Per Share, Declared | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Dividends, Preferred Stock, Cash | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Series D Preferred Stock | ||||||
Dividends Payable [Line Items] | ||||||
Preferred Stock, Dividends Per Share, Declared | $ 0 | $ 29.375 | $ 0 | $ 29.375 | $ 29.375 | $ 29.375 |
Dividends, Preferred Stock, Cash | $ 0 | $ 15 | $ 0 | $ 15 | $ 15 | $ 15 |
Series E Preferred Stock | ||||||
Dividends Payable [Line Items] | ||||||
Preferred Stock, Dividends Per Share, Declared | $ 0 | $ 351.563 | $ 0 | $ 351.563 | $ 351.563 | $ 351.563 |
Dividends, Preferred Stock, Cash | $ 0 | $ 11 | $ 0 | $ 11 | $ 11 | $ 11 |
Series F Preferred Stock [Member] | ||||||
Dividends Payable [Line Items] | ||||||
Preferred Stock, Dividends Per Share, Declared | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Dividends, Preferred Stock, Cash | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Equity Equity (Common Stock Div
Equity Equity (Common Stock Dividends) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Dividends Payable [Line Items] | ||
Dividends, Common Stock, Cash | $ 404 | $ 405 |
Common Stock [Member] | ||
Dividends Payable [Line Items] | ||
Dividends Payable, Date Declared | Jan. 7, 2020 | Jan. 7, 2019 |
Dividends Payable, Date of Record | Feb. 4, 2020 | Feb. 5, 2019 |
Dividends Payable, Date to be Paid | Mar. 13, 2020 | Mar. 13, 2019 |
Common Stock, Dividends, Per Share, Cash Paid | $ 0.440 | $ 0.420 |
Dividends, Common Stock, Cash | $ 404 | $ 405 |
Equity (Common Stock Repurchase
Equity (Common Stock Repurchase Authorization) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Jul. 31, 2019 | Nov. 01, 2018 |
Equity, Class of Treasury Stock [Line Items] | |||
Stock Repurchase Program, Authorized Amount | $ 2,000 | $ 2,000 | |
July2019Authorization [Member] | |||
Equity, Class of Treasury Stock [Line Items] | |||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 485 | ||
November2018Authorization [Member] | |||
Equity, Class of Treasury Stock [Line Items] | |||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 0 |
Equity (Common Stock - Narrativ
Equity (Common Stock - Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Equity [Abstract] | ||
Treasury Stock, Shares, Acquired | 10,664,608 | 11,198,634 |
Treasury Stock, Value, Acquired, Cost Method | $ 500 | $ 500 |
Equity (Stock-Based Compensatio
Equity (Stock-Based Compensation Plans - Narrative) (Details) - shares | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Minimum | ||
Equity - Stock-based Compensation Plans [Line Items] | ||
Future Performance Factor | 0.00% | |
Maximum | ||
Equity - Stock-based Compensation Plans [Line Items] | ||
Future Performance Factor | 175.00% | |
Performance Shares | ||
Equity - Stock-based Compensation Plans [Line Items] | ||
Performance Factor | 91.40% | |
Vested in period | 1,068,099 | |
Issued in period | 976,242 | |
Performance Units | ||
Equity - Stock-based Compensation Plans [Line Items] | ||
Vested in period | 166,191 | |
Paid in period | 151,899 |
Equity (Components of Accumulat
Equity (Components of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance, beginning of period | $ 13,052 | $ 1,722 |
OCI before reclassifications | (606) | 6,675 |
Deferred income tax benefit (expense) | 91 | (1,516) |
AOCI before reclassifications, net of income tax | 12,537 | 6,881 |
Amounts reclassified from AOCI | 272 | 3 |
Deferred income tax benefit (expense) | (52) | 6 |
Amounts reclassified from AOCI, net of income tax | 220 | 9 |
Balance, end of period | 12,757 | 6,911 |
Unrealized Investment Gains (Losses), Net of Related Offsets | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance, beginning of period | 18,283 | 7,042 |
OCI before reclassifications | (3,619) | 6,721 |
Deferred income tax benefit (expense) | 927 | (1,516) |
AOCI before reclassifications, net of income tax | 15,591 | 12,247 |
Amounts reclassified from AOCI | (187) | (2) |
Deferred income tax benefit (expense) | 48 | 0 |
Amounts reclassified from AOCI, net of income tax | (139) | (2) |
Balance, end of period | 15,452 | 12,248 |
Unrealized Gains (Losses) on Derivatives | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance, beginning of period | 1,698 | 1,613 |
OCI before reclassifications | 3,687 | (11) |
Deferred income tax benefit (expense) | (810) | 6 |
AOCI before reclassifications, net of income tax | 4,575 | 1,608 |
Amounts reclassified from AOCI | 438 | (24) |
Deferred income tax benefit (expense) | (96) | 12 |
Amounts reclassified from AOCI, net of income tax | 342 | (12) |
Balance, end of period | 4,917 | 1,614 |
Foreign Currency Translation Adjustments | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance, beginning of period | (4,927) | (4,905) |
OCI before reclassifications | (674) | (36) |
Deferred income tax benefit (expense) | (26) | (6) |
AOCI before reclassifications, net of income tax | (5,627) | (4,947) |
Amounts reclassified from AOCI | 0 | 0 |
Deferred income tax benefit (expense) | 0 | 0 |
Amounts reclassified from AOCI, net of income tax | 0 | 0 |
Balance, end of period | (5,627) | (4,947) |
Defined Benefit Plans Adjustment | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance, beginning of period | (2,002) | (2,028) |
OCI before reclassifications | 0 | 1 |
Deferred income tax benefit (expense) | 0 | 0 |
AOCI before reclassifications, net of income tax | (2,002) | (2,027) |
Amounts reclassified from AOCI | 21 | 29 |
Deferred income tax benefit (expense) | (4) | (6) |
Amounts reclassified from AOCI, net of income tax | 17 | 23 |
Balance, end of period | $ (1,985) | (2,004) |
Accounting Standards Update 2017-12 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Amounts reclassified from AOCI | 26 | |
Deferred income tax benefit (expense) | (5) | |
Amounts reclassified from AOCI, net of income tax | 21 | |
Accounting Standards Update 2017-12 | Unrealized Investment Gains (Losses), Net of Related Offsets | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Amounts reclassified from AOCI | 4 | |
Deferred income tax benefit (expense) | (1) | |
Amounts reclassified from AOCI, net of income tax | 3 | |
Accounting Standards Update 2017-12 | Unrealized Gains (Losses) on Derivatives | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Amounts reclassified from AOCI | 22 | |
Deferred income tax benefit (expense) | (4) | |
Amounts reclassified from AOCI, net of income tax | 18 | |
Accounting Standards Update 2017-12 | Foreign Currency Translation Adjustments | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Amounts reclassified from AOCI | 0 | |
Deferred income tax benefit (expense) | 0 | |
Amounts reclassified from AOCI, net of income tax | 0 | |
Accounting Standards Update 2017-12 | Defined Benefit Plans Adjustment | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Amounts reclassified from AOCI | 0 | |
Deferred income tax benefit (expense) | 0 | |
Amounts reclassified from AOCI, net of income tax | $ 0 |
Equity (Reclassifications Out o
Equity (Reclassifications Out of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net investment gains (losses) | $ (288) | $ 15 |
Net derivative gains (losses) | 4,201 | 115 |
Net investment income | 3,061 | 4,908 |
Other expenses | 3,273 | 3,225 |
Income (loss) from continuing operations before provision for income tax | 5,643 | 1,744 |
Income tax (expense) benefit | (1,242) | (359) |
Net income (loss) | 4,401 | 1,385 |
Reclassification out of Accumulated Other Comprehensive Income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net income (loss) | (220) | (9) |
Reclassification out of Accumulated Other Comprehensive Income | Unrealized Investment Gains (Losses), Net of Related Offsets | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net investment gains (losses) | 204 | (24) |
Net derivative gains (losses) | (6) | 22 |
Net investment income | (11) | 4 |
Income (loss) from continuing operations before provision for income tax | 187 | 2 |
Income tax (expense) benefit | (48) | 0 |
Net income (loss) | 139 | 2 |
Reclassification out of Accumulated Other Comprehensive Income | Unrealized Gains (Losses) on Derivatives | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Income (loss) from continuing operations before provision for income tax | (438) | 24 |
Income tax (expense) benefit | 96 | (12) |
Net income (loss) | (342) | 12 |
Reclassification out of Accumulated Other Comprehensive Income | Unrealized Gains (Losses) on Derivatives | Interest Rate Contract | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net investment gains (losses) | 6 | (6) |
Net investment income | 6 | 5 |
Other expenses | 1 | 1 |
Reclassification out of Accumulated Other Comprehensive Income | Unrealized Gains (Losses) on Derivatives | Foreign currency swaps | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net investment gains (losses) | (451) | 25 |
Net investment income | 0 | (2) |
Reclassification out of Accumulated Other Comprehensive Income | Unrealized Gains (Losses) on Derivatives | Credit | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net investment gains (losses) | 0 | 1 |
Reclassification out of Accumulated Other Comprehensive Income | Defined Benefit Plans Adjustment | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Amortization of net actuarial gains (losses) | (26) | (36) |
Amortization of prior service (costs) credit | 5 | 7 |
Income (loss) from continuing operations before provision for income tax | (21) | (29) |
Income tax (expense) benefit | 4 | 6 |
Net income (loss) | $ (17) | $ (23) |
Other Revenues and Other Expe_3
Other Revenues and Other Expenses Other Revenues (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 345 | $ 337 |
Other revenues | 439 | 494 |
Prepaid legal plans | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 101 | 86 |
Fee-based investment management | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 79 | 77 |
Recordkeeping and administrative services | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 49 | 50 |
Administrative services-only contracts | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 56 | 53 |
Other revenue from service contracts from customers | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 60 | 71 |
Other Income | ||
Disaggregation of Revenue [Line Items] | ||
Other revenues | $ 94 | $ 157 |
Other Expenses (Other Expenses)
Other Expenses (Other Expenses) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Other Income and Expenses [Abstract] | ||
Employee-related costs (1) | $ 869 | $ 922 |
Third party staffing costs | 348 | 369 |
General and administrative expenses | 190 | 223 |
Pension, postretirement and postemployment benefit costs | 39 | 56 |
Premium taxes, other taxes, and licenses & fees | 193 | 170 |
Commissions and other variable expenses | 1,408 | 1,449 |
Capitalization of DAC | (774) | (812) |
Amortization of DAC and VOBA | 788 | 624 |
Amortization of negative VOBA | (10) | (10) |
Interest expense on debt | 222 | 234 |
Total other expenses | 3,273 | 3,225 |
Net change in cash surrender value of investments, net of premiums paid | $ 40 | $ (76) |
Other Expenses (Restructuring C
Other Expenses (Restructuring Charges) (Details) - Unit Cost Initiative - Other expenses - Severance - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Restructuring Cost and Reserve [Line Items] | ||
Balance, beginning of period | $ 57 | $ 23 |
Restructuring charges | 0 | 7 |
Cash payments | (35) | (13) |
Balance, end of period | 22 | 17 |
Total restructuring charges incurred since inception of initiative | $ 244 | $ 143 |
Employee Benefit Plans (Net Per
Employee Benefit Plans (Net Periodic Benefit Costs) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Pension Benefits | ||
Net periodic benefit costs [Abstract] | ||
Service costs | $ 62 | $ 58 |
Interest costs | 89 | 104 |
Expected return on plan assets | (132) | (122) |
Amortization of net actuarial (gains) losses | 45 | 48 |
Amortization of prior service costs (credit) | (4) | (4) |
Net periodic benefit costs (credit) | 60 | 84 |
Other Postretirement Benefits | ||
Net periodic benefit costs [Abstract] | ||
Service costs | 1 | 1 |
Interest costs | 10 | 13 |
Expected return on plan assets | (15) | (16) |
Amortization of net actuarial (gains) losses | (19) | (12) |
Amortization of prior service costs (credit) | (1) | (3) |
Net periodic benefit costs (credit) | $ (24) | $ (17) |
Income Tax (Narrative) (Details
Income Tax (Narrative) (Details) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Effective Income Tax Rate Reconciliation, Percent | 22.00% | 21.00% |
Earnings Per Common Share (Earn
Earnings Per Common Share (Earnings Per Common Share) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Weighted Average Shares: | ||
Weighted average common stock outstanding - basic | 914.1 | 956.5 |
Incremental common shares from assumed exercise or issuance of stock-based awards | 5.9 | 6.8 |
Weighted average common stock outstanding - diluted | 920 | 963.3 |
Net Income (Loss): | ||
Net income (loss) | $ 4,401 | $ 1,385 |
Less: Net income (loss) attributable to noncontrolling interests | 3 | 4 |
Less: Preferred stock dividends | 32 | 32 |
Net income (loss) available to MetLife, Inc.’s common shareholders | $ 4,366 | $ 1,349 |
Basic | $ 4.78 | $ 1.41 |
Diluted | $ 4.75 | $ 1.40 |
Contingencies, Commitments an_2
Contingencies, Commitments and Guarantees (Contingencies - Narrative) (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020USD ($)Claims | Mar. 31, 2019Claims | Dec. 31, 2019Claims | |
Minimum | |||
Loss Contingencies | |||
Loss Contingency, Range of Possible Loss, Portion Not Accrued | $ 0 | ||
Maximum | |||
Loss Contingencies | |||
Loss Contingency, Range of Possible Loss, Portion Not Accrued | $ 250 | ||
Asbestos Related Claims | |||
Loss Contingencies | |||
Asbestos-Related Claims | Claims | 596 | 843 | 3,187 |
Contingencies, Commitments an_3
Contingencies, Commitments and Guarantees (Commitments and Guarantees - Narrative) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Contingencies, Commitments and Guarantees [Abstract] | ||
Liabilities for indemnities, guarantees and commitments | $ 6 | $ 6 |
Cumulative maximum indemnities and guarantees contractual limitation | 528 | |
Minimum | ||
Contingencies, Commitments and Guarantees [Abstract] | ||
Indemnities and guarantees contractual limitation range | 1 | |
Maximum | ||
Contingencies, Commitments and Guarantees [Abstract] | ||
Indemnities and guarantees contractual limitation range | 329 | |
Mortgage Loan Commitments | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability | 2,700 | 4,100 |
Commitments to Fund Partnership Investments, Bank Credit Facilities, Bridge Loans and Private Corporate Bond Investments | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability | $ 8,000 | $ 8,100 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | ||||
Jun. 30, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | Jul. 31, 2019 | Nov. 01, 2018 | |
Subsequent Event [Line Items] | |||||
Stock Repurchase Program, Authorized Amount | $ 2,000 | $ 2,000 | |||
Estimated aggregate dividend payment | $ 404 | $ 405 | |||
Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | |||||
Dividends Payable, Date Declared | Apr. 28, 2020 | ||||
Approved dividend, amount per share | $ 0.46 | ||||
Estimated aggregate dividend payment | $ 419 | ||||
Dividends Payable, Date to be Paid | Jun. 12, 2020 | ||||
Dividends Payable, Date of Record | May 8, 2020 |